Evergreen Marine Annual Report 2019 PDF

OFFICE
ADDRESS: No.166, Sec. 2, Minsheng East Road, Taipei, Taiwan

PHONE: (886) 2-2505-7766
ADDRESS: No. 163, Sec. 1, Xinnan Rd., Luzhu Dist., Taoyuan, Taiwan.
PHONE: (886) 3-312-3508
Kaohsiung Container Terminal 4 : Pier 116 , Port of Kaohsiung, Qijin Dist., Kaohsiung , Taiwan.
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Kaohsiung Container Terminal５ : No. 68, Guanghe Rd., Xiaogang Dist., Kaohsiung , Taiwan .
PHONE: (886) 7-813-5171
WEBSITE: www.evergreen-marine.com
STOCK DEPARTMENT
ADDRESS: 2F, No.166, Sec. 2, Minsheng East Road, Taipei, Taiwan
PHONE: (886) 2-2500-1668
WEBSITE: stock.evergreen.com.tw
SPOKESPERSON
NAME: Huey-Chuan, Hsieh
TITLE: President
PHONE: (886) 2-2505-7766
E-Mail: [email protected]
VICE-SPOKESPERSON
NAME: Kuang-Hui Wu
TITLE: Chief Executive Vice President
PHONE: (886) 2-2505-7766
E-Mail: [email protected]
AUDIT
AUDITOR: Pricewaterhouse Coopers
ADDRESS: 27th Floor 333 Keelung Road, Sec. 1 Taipei, Taiwan
PHONE: (886) 2-2729-6666
WEBSITE: www.pwc.com/tw
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CONTENTS
5 CHAPTER 1. Letter to Shareholders 163 CHAPTER 6. Financial Information
5 I. 2018 Business Report 163 I. Five- Year Financial Summary
17 II. 2019 Business Plan 167 II. Five- Year Financial Analysis
170 III. The Company should disclose the financial
20 CHAPTER 2. Company Profile impact to the Company if the Company and
20 I. Registration Date of the Company: its affiliated companies have incurred any
September 25, 1968 financial or cash flow difficulties in 2018 and
20 II. A Chronology of Evergreen Marine as of the date of this Annual Report
Corporation (Taiwan) Ltd. 171 IV. Audit committee’s Review Report
172 V. Consolidated Financial Statements and
29 CHAPTER 3. Corporate Governance Report of Independent Accountants
Report 307 VI. Parent Company Only Financial Statements
29 I. Organization and Report of Independent Accountants
32 II. Directors and Management Team
60 III. Implementation of Corporate Governance 431 CHAPTER 7. Review of Financial
112 IV. Information Regarding the Company’s Audit Conditions, Financial Performance, and
Fee and Independence Risk Management
112 V. Replacement of CPA 431 I. Analysis of Financial Status
112 VI. Audit Independence 432 II. Analysis of Financial Performance
113 VII. Changes in Shareholding of Directors, 433 III. Analysis of Cash Flow
Supervisors, Managers and Major 433 IV. Major Capital Expenditure Items
Shareholders 435 V. Investment Policy in the Last Year, Main
117 VIII. Changes in Shareholding Causes for Profits or Losses, Improvement
119 IX. Ownership of Shares in Affiliated Enterprises Plans and Investment Plans for the Coming
Year
120 CHAPTER 4. Capital Overview 435 VI. Analysis of Risk Management
120 I. Capital and Shares 442 VII. Other important issues
127 II. Bonds
128 III. Preferred Stock 443 CHAPTER 8. Special Disclosure
129 IV. Global Depository Receipts 443 I. Summary of Affiliated Companies
130 V. Employee Stock Options 459 II. Securities issuance through private placement
130 VI. Status of New Shares Issuance in Connection 459 III. Holdings and sale of shares by subsidiaries
with Mergers and Acquisitions 459 IV. Other necessary supplementary information
130 VII. Financing Plans and Implementation 459 V. Any events in 2018 and as of the date of
this annual report had significant impacts on
132 CHAPTER 5. Business Development shareholders’ right or security prices as stated
Outline in item 3 paragraph 2 of Article 36
132 I. Business Highlights
141 II. Market and Industry Analysis
148 III. Human Resources
148 IV. Expenses for environmental protection
151 V. Labor Relations
157 VI. Important Agreement
1 Letter to Shareholders
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2018 Annual Report
Dear Shareholders,
The world economic situation in 2018 was more complex than that
of past years. Whilst the overall economic performance was stable, there
has been, however, the rise of trade protectionism and the mounting of
tariff barriers (especially the continuous trade war between the United
States and other economies) that not only has worsened the environment
for international trade development, but also brought significant
uncertainty to the outlook of global economy and investment. Basically,
the global container shipping market is closely linked to global trade
activities, yet the long-lasting Sino-US trade war has caused serious
disruptions to the supply chain, investment, and consumption across the
world. On the other hand, the geopolitical conflicts continues, resulting in
high oil prices and slowing the economies of vulnerable emerging market
countries. Meanwhile, the volatile global financial market has threatened
the value of currencies and economic growth. High oil prices have also
forced a surge in the operating costs of the carriers, and created the
biggest challenge to the global container shipping market in 2018.
Despite the challenges of the external operating environment, great
team efforts were exerted by all Evergreen employees by exercising the
Evergreen spirit of unity, challenge, and innovation. We actively deal with
the volatility of the operating environment, such as the safety of the fleet
and personnel, ship schedules, wharf operation efficiency, timely cargo
transportation data, information system security and customer service
operations, which are all maintained at the best level. In addition to a
more comprehensive global service network that reduces operating costs,
it also provides an improved customer service experience for shippers.
I. 2018 Business Report

1. Container shipping market overview
(1) Cargo volume growth
According to the World Economic Outlook, WEO, published
in April 2019 by the International Monetary Fund (IMF), global
economic growth is estimated to be about 3.6 % in 2018 which is
less than 3.8% in 2017. The major economic regions were doing well
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2018 Annual Report
in economic growth rates, such as 2.9% in the United States, 1.8%

in the Euro area, and 6.6% in mainland China. The global demand
for container shipping was growing steadily as a result of the sound
performance of the global economy. According to the statistical
analysis report of Alphaliner, a professional research institute for
Maritime Containers, in March 2019, the global container traffic
growth of 4.8% in 2018, although lower than that of 2017 (6.7%), it is
still above the years before when compared to 2016 (2.7%) and 2015
(1.4%). Compared with 2017, the world's major cargo sourcing areas
have performed well in 2018, such as an increase of 7.5% in Southeast
Asia, 3.7% in northern Europe, 3.8% in northeast Asia, and 5.3% in
North America.
(2) Capacity Supply
According to Alphaliner, published in January 2019, the total
global container fleet growth of 5.7% in 2018 (about 22.32 million
TEU) was higher than in 2017 (3.7%) and 2016 (1.9%).
New deliveries totaled 165 units at 1.3 million TEU. The new ship
orders of 18 thousand TEU and above stand at 45 units, 10 thousand
~18 thousand TEU at 88 units, there are 133 large ships in total with
a size of 10 thousand and above, and the total capacity is at 2.187
million TEU, accounting for 80% of the order-yet-undelivered global
total capacity. The trend in the market for the new shipbuilding is
toward Ultra Large Container Vessels (ULCV).
Idle capacity stood at 628 thousand TEU, 205 vessels, accounting
for 2.8% of the global total. This is compared with 117 vessels at the
end of 2017, 417 thousand TEU, accounting for 2.0% of the global
total.
There were more than 92 ships of 18 thousand TEU in 2018,
accounting for 8.1% of the global total, 271 ships of 12.5 thousand
~18 thousand TEU, accounting for 17.1% of the global total, 160
ships of 10 thousand ~12.5 thousand TEU, accounting for 7.7% of the
global total, and 10 thousand TEU and above totaling at 523 ships,
accounting for 32.9% of the global total.
(3) Freight Market Status
Despite gradual recovery of the global economy in 2018,
geopolitical risks and the uncertainty created by trade protectionism
have also severely damaged the normal growth of global supply chains,
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and consequently decreased world trade. Due to overcapacity, market

freight rate remains at a lower level, and unfortunately much higher fuel
prices increased carrier operation costs. According to Alphaliner, the
average profit rate of the industry in Q1 was -3.1% (-1.2% in 2017), Q2
was -3.8% (3.0% in 2017), and Q3 was 0.6% (5.3% in 2017). Affected
by the Sino-US Tariff trade war, market space demand had increased,
the average profits increased to 1.2% in Q4 (1.0% in 2017).
2. Company Operational Strategy

In response to the rapid changes in the operating environment,
the company timely adjusted its operating strategy to strengthen the
company's core competitiveness. The operating strategy is summarized
as follows:
(1) Continue to strengthen OCEAN Alliance cooperation and develop
new service networks
(2) Outstretching various strategic fleets of ships to enhance the
competitiveness of each route
(3) Upgrading the environmental protection equipment of ships in
response to the provisions of international regulations
(4) Control all cost items systematically and optimize the ship
development in every trade lane
(5) Actively develop e-commerce to enrich the customer service
experience
3. Annual Accounts & Profitability Analysis

(1) Annual Accounts
In 2018, actual consolidated operating income totaled NT$169.24
billion, an increase of NT$18.65 billion compared to the NT$150.58
billion in 2017. In 2018, actual consolidated operating costs were
NT$161.77 billion, which represents an increase by NT$22.08 billion
compared to the NT$139.69 billion in 2017.
(2) Profitability Analysis
ROA: 0.74 %
ROE: 0.11 %
Net Profit Margin: 0.05 %
EPS: NTD 0.07 per share
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4. Research & Development

(1) Green Fleet
Evergreen commits to pollution prevention, energy conservation,
and greenhouse gas reduction, and to protect our planet in accordance
with international environmental protection conventions and
environmental protection regulations. We have strict standards and
operational procedures for all environmental protection and pollution
prevention and control of ships sailing at sea, and we will use the latest
technology as soon as it is available so as to minimize the impact of
container shipping operations both on marine life, on port communities,
and on humanity worldwide.
Providing quality services to safely deliver goods to the port of
destination and take into account environmental protection, energy
conservation, and reducing greenhouse gas emissions and air pollution
have always been the principles and endeavor of Evergreen. The
Shipbuilding Dept. is responsible for the design of new ships. New
ship designs incorporate the latest international laws and conventions.
The Evergreen philosophy of green ships means advanced marine
technology is used to optimize each ship type in order to maximize
returns and satisfy energy conservation targets.
Twenty units of 2,800 TEU B-type vessels with a main engine
using electronic fuel injection produce 20% less NOx emissions than
conventional engines, which complies with the 2015 Energy Efficiency
Design Index (EEDI) and Tier II NOx emission standards set by the
IMO. B-type shipbuilding plans should be completed and delivered by
the second half of 2019. The ten Gen 3 B-type ships under construction
with CSBC Taiwan are equipped with the latest sword bow developed
by the shipyard. The bow can handle different drafts and speeds while
effectively reducing wave resistance and drag when the ship is in
motion to optimize ship speed and engine performance. Fuel efficiency
is improved by 10% compared to the conventional bulbous bow.
The “Environmental Guardians” page on our website has been
constantly maintained so as to proactively share our management of
emissions and treatment of ballast and sludge. There are details for the
latest environmental protection designs of S-type, L-type and B-type
vessels and other green instruments for the easy reference for our
customers.
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2018 Annual Report
(2) Maritime Training

Evergreen upholds the spirit and vision of sustainable development.
It is committed to professional maritime training and onward. The
Evergreen Seafarer Training Center has a full range of training
equipment and rigorous, well planned training courses to continuously
improve professional knowledge and skills, and to prevent maritime
accidents and environmental pollution.
(a) In 2018, the Evergreen Seafarer Training Center organized a total
of 26 categories and 224 professional training courses, training up
to 1,639 participants.
(b) In January 2018, the Maritime and Coastguard Agency of the United
Kingdom (MCA) re-approved the "Human Element Leadership and
Management (Management Levels)", "Human Element Leadership
and Management (Operational Levels)" as specified in the 2010
amendment to the STCW (International Convention on Standards
Of Training, Certification and Watchkeeping for Seafarers) "Ship's
Cook MLC, 2006 Regulation 3.2.3", and other training courses.
(c) In June 2018, the HK MARDEP (Hong Kong Marine Department)
re-approved the Evergreen Seafarer Training Center for offering
training on the course specifications of STCW (International
Convention on Standards of Training, Certification and
Watchkeeping for Seafarers) 2010 Manila amendments.
(d) To expand the cultivation of maritime professionals, Evergreen
has been stepping up the cooperation with National Taiwan
Ocean University and National Kaohsiung University of Science
and Technology. Starting from the post-bachelor program of
maritime transportation and Engineering for cultivating respective
professional knowledge and skill, Evergreen also offers the
opportunity to non-maritime undergraduate to engage in maritime
work. Evergreen has also been subsidizing the total tuition and part
of the accommodation of qualified students, who will be awarded
with an internship onboard the Evergreen fleet. Vacancies will be
offered to cadets with excellent performance.
(3) E-Commerce
Evergreen introduced the paperless Bill of Lading (B/L) and
dispatch documentation via its ShipmentLink digital portal, enhancing
connectivity for exporters and importers with banks, insurers,
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regulators, and customs and port authorities. Evergreen is the first

container carrier to integrate with Bolero’s proven electronic Bill of
Lading (eBL) solution.
In line with its avowed mission to deliver the highest standards
of customer service through continual improvement, Evergreen has
introduced two new Intelligent Services - the intelligent i-B/L (Bill of
Lading) and i-Dispatch, a solution that delivers documents associated
with such transactions.
The advantages of this new integration for Evergreen’s container
shippers start with the rapid issuance and transmission of the i-B/L. This
is helpful in all cases but particularly for short-sea shipments when a
paper Bill of Lading can sometimes arrive later than the vessel, making
it difficult for importers to pick up cargo on a timely basis.
However the advantages of i-B/L do not end there. The paperless
environment allows reviews and alterations to be undertaken online and
speeds up cash-flow by avoiding the delays associated with traditional
documents. Carriers can release goods and banks can release payment
to shippers far more quickly.
Evergreen is pleased therefore to add i-B/L and i-Dispatch to its
existing suite of electronic functions, including shipment booking
and tracking, for the use of customers via Evergreen ShipmentLink.
Our partnership with Bolero, introducing new digital functionality,
marks the expansion of the established online portal into high-volume
container trades.
Evergreen is committed to offer a high-quality and reliable shipping
information system, to provide customers an efficient, safe, and
reliable e-commerce digital platform to assist all parties in the trade
lane to reduce costs and improve operational efficiency. Evergreen's
e-commerce platform also has a number of functions such as schedule
inquiry, container dynamic tracking, bill of lading management, volume
analysis, electronic data transmission exchange, total container weight
verification declarations, and so on.
(4) Quality Recognition
Evergreen has been constantly improving the quality of service, in
addition to continuing to win the trust and affirmation from customers,
but also sustained affirmation and certification from international media
and organizations:
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 LOG-NET E-Commerce Excellence Award for 2017

 The Port Authority of NY & NJ - Green Ship Award 2018
 Port of Vancouver – 2017 Blue Circle Award
 New Jersey Smart Workplaces - Gold Award 2017
 Santa Barbara Region Vessel Reduction Incentive Program -
Protecting Blue Whales and Blue Skies Recognized Evergreen
vessels
 Dollar Tree/Family Dollar - 2017 Ocean Carrier of the Year
 Home Depot - Ocean Carrier of the Year 2017
II. 2019 Business Plan

According to the Alphaliner forecast, global capacity will increase
by 3.1%, while demand for growth will increase at 3.6% in 2019.
However, in the context of tariff wars, trade protectionism, embargo
sanctions, the fragility of emerging-market currencies, uncertainty
about the outlook for Brexit, and uncertain factors such as fuel prices,
the global container transport market still faces considerable challenges.
1. Business Strategy
(1) Continuously strengthen the alliance collaboration -Full
utilization of the core network
The OCEAN Alliance was kicked off officially in April 2017,
which comprises the French CMA CGM, China Ocean (COSCO),
Hong Kong Orient Overseas (OOCL), and Evergreen. It has 41 service
routes, 330 vessels, and a total operating capacity of nearly 3.34
million TEU, making it the largest among world's three major shipping
alliances. In 2018, it had 42 service routes, 338 vessels, and a total
operating capacity of nearly 3.71 million. In 2019, it is planned to
continue its cooperation to provide 39 service routes, 330 vessels, and
a total operating capacity of nearly 3.88 million TEU to better serve
customers’ needs.
(2) Accelerated Fleet upgrade Plan
Proactively upgrading green ship features to fulfill policy and
efficiency by ordering ships ranging from 1,800 TEU, 2,500 TEU,
2,800 TEU, 12,000 TEU, and 20,000 TEU, deploying most competitive
vessels into the relevant routes, fully taking advantage of the
Alliance network, and adjusting capacity timely to reduce the cost of
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transshipment. At the same time, the introduction of big data software to analyze the ship's
data for the latest weather navigation information to save fuel costs and improve the safety
of navigation.
2. Industry Outlook
(1) Capacity Supply
According to Alphaliner , the global fleet will be 23.02 million TEU in 2019, an increase
of 3.1% over 2018. It is expected that 161 new ships at 987 thousand TEU will be added in
2019.
(2) The Growth of Cargo Volume
Drewry, a British maritime consultancy, forecast the global volume of goods is
estimated to be 810 million TEU in 2019, an increase of 31 million TEU over 2018 and
growth of about 3.9% compared with 779 million TEU. Alphaliner also indicated a growth
of 3.6% in 2019.
3. External competitive environment, regulatory environment and overall

operating environment
(1) External competitive environment
Marine fuel prices continued to rise in 2018, with Brent crude rising from an average
of $54 per barrel in 2017 to $71, increased by 17 dollars per barrel, or 31%. Fuel prices
continued to climb in 2018, creating a heavy cost burden on carriers.
(2) Regulatory Impactt
a. On January 1, 2019, emission control areas in the Mainland's territorial waters and the
international commercial port area of the Republic of China (Taiwan) were mandated to
use fuel oil with a sulfur content <0.5% m/m.
b. The MEPC decided that after January 1, 2020, in addition to the other areas of the world
except the Emission Control Area (using 0.1% m/m sulfur content), the maximum sulfur
content of marine fuel shall not exceed 0.5% m/m.
c. The annual emissions of CO2 from maritime transport account for about 2.8% of
global greenhouse gas emissions. The IMO proposes to incorporate increasing marine
emissions into greenhouse gas emission reduction policies, and implement new energy
efficiency design indicators at the 72nd meeting of MEPC. (EEDI) requirements to
reduce carbon emissions. The CO2 emission rate of ships targeting international routes
in 2030 is set to be at least 40% lower than the 2008 figure and is expected to be reduced
to 70% by 2050. The total emissions, the total greenhouse gas emissions in 2050 need to
be reduced by 50% compared to the 2008 value.
The MEPC (Marine Environmental Protection Committee) approved the Global
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2018 Annual Report
Ship Fuel Consumption Data Collection at its 69th session and revised the MARPOL
Convention Annex VI, which is the global ship fuel consumption data collection. The
information collected since 2019 will be reported to the flag State after the end of each
year. After verifying the data, the flag State will issue a Declaration of Conformity to the
vessel and submit the data to the IMO Ship Fuel Consumption Database.
(3) Macro Business Environment
The global economy was affected deeply by trade protectionism, tariff wars, embargo
sanctions, Brexit disputes, and uncertainties such as high oil prices, which seriously
disrupted the normal operations of global supply chains, and made it more difficult for
companies to plan their investments and increase the negative impact of their areas.
Fortunately, the global container operators in the past few years have carried out a series
of industrial integrations, and the marine industry went into a stable stage toward healthy
development. On the other side, with IMO2020, low-sulfur fuel regulations will be
implemented soon, the new rules will push carriers to accelerate the elimination of old
ships, and the market supply and demand is increasingly balanced.
4. Future strategy
While the global economy is likely to weaken in 2019 due to the trade war between
China and the United States, the IMF still predicts a global growth rate of 3.3% percent in
2019, less than 3.6% in 2018, still showing that global economic momentum can remain at
a certain level. The global economic growth is expected to recover in the second half of the
year, reaching 3.6% in 2020. Although the future market changes are difficult to predict,
we continue to carry out fleet upgrading, better control in costs and expenses, expanding
market share, and full utilization of the space under the operation of the Alliance to enhance
the efficiency. All employees of the company will also go the extra mile in implementing
cost reduction policies, offering better service quality, and generating more profits in order
to achieve our goals.
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2 Company Profile
2 Company Profile
I. R e g i s t r a t i o n D a t e o f t h e C o m p a n y :
September 25, 1968
II. A C h r o n o l o g y o f E v e r g r e e n M a r i n e
Corporation (Taiwan) Ltd.
1968-1976
■ Established with capital of NT$2 million.
■ Evergreen Shipping Agency (Japan) Corporation founded.
■ Evergreen Shipping Agency (America) Corporation founded.
1977-1986
■ Evergreen Marine (UK) Limited founded.
■ Launching of unprecedented round-the-world eastbound
services and westbound regular full container services and

construction of 24 G-type container vessels.
■ Evergreen Shipping Agency (Deutschland) GmbH founded.
1987-1996
■ Listed on the Taiwan Stock Exchange with capital of NT$10
billion. (Stock Code: 2603)
■ Launching of the Far East/US West Coast refrigerated
container service.
■ Evergreen Marine (Hong Kong) Ltd. founded.
■ Issuance of Global Depository Receipts of a total value of
US$115 million on the London Stock Exchange.
1997-2001
■ Evergreen Shipping Agency Philippines Corporation founded.
■ Colon Container Terminal S.A. in Panama becomes fully
operational as a common user facility.
■ Evergreen Shipping Agency (Poland) SP.Z.O.O. founded.
■ Evergreen Container Terminal NO 5, Berths 79, 80 and 81
in Kaohsiung Port becomes fully operational and Taiwan’s

Customs authorities approved the implementation of an
“overall self-management” system to improve and upgrade
Evergreen’s services to shippers.
■ Evergreen Shipping Agency (France) S.A.S. founded.
■ Evergreen Shipping Agency (Korea) Corporation founded.
■ Evergreen Marine Corp. (Malaysia) Sdn. Bhd. founded.
■ Evergreen Shipping Agency (Netherlands) B.V. founded.
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2018 Annual Report
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2018 Annual Report
■ Evergreen Shipping Agency (Thailand) Co., Ltd. founded.

■ Evergreen Marine (Singapore) Pte Ltd. founded.
■ Taranto Container Terminal in the south of Italy, with Evergreen Group
as one of the investors, opened for business with a comprehensive

feeder network serving other Italian ports, the western and eastern
Mediterranean, the Adriatic Sea and the Black Sea.
■ The Evergreen Seafarer Training Center is awarded ISO-9001:2000 for
quality systems, marine simulator equipment, and training centers by

DNV. The training center, an Evergreen Group investment opened in
1999, aims to boost the professional skills of the Group crew, reduce
the risk of accidents and environmental pollution at sea and conform to
international regulations.
■ Chang Yang Development Co., Ltd. is established as a joint venture
with Tesco Taiwan for investment and construction of the Tesco

Chingkuo Store in Taoyuan City.
2002-2006
■ Evergreen Shipping Agency (Australia) Pty. Ltd. founded.
■ Certified for “Safety, Quality & Environmental Management” by the
American Bureau of Shipping.
■ PT. Evergreen Shipping Agency Indonesia founded.
■ Evergreen Shipping Agency (Vietnam) Corporation founded.
■ The Evergreen Seafarer Training Center is awarded an Occupational
Training Institution certificate by the Council of Labor Affairs of the

Executive Yuan.
■ Investment in Taipei Port Container Terminal Corp.
■ Evergreen Group orders ten S-series container vessels from Mitsubishi
Heavy Industries Ltd.

■ Evergreen Shipping Agency (India) Private Ltd founded.
■ Inauguration of a new state-of-the-art Pierce County Container
Terminal at the Port of Tacoma, invested in by Evergreen Group.

■ Evergreen Shipping Agency (Italy) S.P.A. founded.
2007-2011
■ Evergreen Shipping Spain, S.L. founded.
■ Evergreen Shipping Sweden founded.
■ Evergreen Shipping South Africa founded.
■ Evergreen Group ordered twenty L-series container vessels from
Samsung Heavy Industries.
2012-2016
■ Launching of “ShipmentLink Mobile”, an e-commerce app for
handheld devices.
■ Honored with the AEO certificate by Customs Administration
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2018 Annual Report
■ Launching of West Coast of Central America (WCA) service with

X-Press.
■ Evergreen Seafarer Training Center passes Class NK Certification.
■ Launching of South China–Philippines–East Malaysia (CPM) service.
■ Launching of China–Pacific South West (CPS2) service.
■ Launching of China–Australia–Taiwan (CAT) service.
■ Launching of New Ho Chi Minh (NHS) service.
■ Evergreen Line signs agreements with Costamare and Shoei Kisen
Kaisha for the lease of five 14,000 TEU container ships each.
■ Evergreen teams up with COSCO, K Line, Yang Ming and Hanjin to
establish the CKYHE Alliance.

■ Ever Living, Evergreen’s first L type container ship built by CSBC is
selected as “Ship of the Year” by the Taiwan Society Naval Architects

and Marine Engineers.
■ Evergreen Group signs time charter agreements with Shoei Kisen
Kaisha in January to charter eleven 20,000 TEU vessels, including six

units chartered by Evergreen Marine Corp. (EMC) and its subsidiary.
■ Evergreen Line launches a new Taiwan–Shekou–Malacca Strait
service (TSS) in March and introduces a dedicated Taiwan – Hong

Kong service (THK). GHG emissions generated by land transport are
reduced through a “Blue Highway” for containers in Northern, Central,
and Southern Taiwan.
■ Evergreen Line launches its new Vietnam-Singapore-Malaysia service
(VSM) in May.
■ Evergreen Group signs an agreement with CSBC Corporation in July
to build ten 2,800 TEU B-type vessels.

■ Evergreen Group signs an agreement with Japanese shipbuilder
Imabari in September for another ten 2,800 TEU B-type vessels.

■ Evergreen Group’s Colon Container Terminal, S.A. (CCT) completes
construction of its Berth No. 4 in December. The facility can

accommodate large container ships of up to 14,000 TEU.
■ Evergreen Line signs a Memorandum of Understanding with CMA
CGM, COSCO Container Lines and OOCL to form the OCEAN

Alliance, which will provide a comprehensive service network
covering Asia-Europe, Asia-Mediterranean, Asia-Red Sea, Asia-
Middle East, Trans-Pacific, Asia-North America East Coast, and Trans-
Atlantic trade routes. Subject to regulatory approval of the competent
authority, the new Alliance plans to begin operations in April 2017.
■ In order to train more marine professionals, Evergreen Marine
Corporation concludes a cooperation agreement with National

Kaohsiung Marine University, offering marine technology classes for
students who have not studied in this realm before.
■ Evergreen Line named “Best Shipping Line – Trans-Pacific” by Asia
Cargo News at the 2016 Asian Freight, Logistics and Supply Chain
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2018 Annual Report
Awards (AFLAS).
■ Evergreen’s 8,000 TEU vessel passes through the expanded Panama
Canal in July. In light of the business opportunities offered by the
expansion of the Canal, Evergreen has upgraded the size of ships
utilized for Far East – US East Coast services.
■ In a move designed to significantly enhance China-Indian Subcontinent
trade, Evergreen Line teams up with Wan Hai, COSCO, “K” Line and
PIL to offer two joint services.
■ In response to the reorganization of Hanjin (a CKYHE alliance
member), Evergreen Line has added new functions to its on-line

e-commerce system, offering customers real time cargo status updates,
and providing detailed service plans within its own networks as an
effective substitute to cover the services impacted by Hanjin.
■ Evergreen Line works with COSCO in operating a joint Adriatic –
Israel service, providing direct and rapid service to customers.

■ Evergreen teams up with YML, OOCL, MOL & “K” Line to offer a
new joint North East Asia – Australia Express.

■ Evergreen Line and OCEAN Alliance partners sign a document entitled
“the Day One Product” that sets out the proposed OCEAN Alliance’s
network, including port rotation for each service loop.
2017
■ For an unprecedented third consecutive year, Evergreen Line receives
the E-Commerce Excellence Award from LOG-NET, a leading
information systems integrator of ocean carriers and customers,
striving to create efficient information system and reliable service
chain, Evergreen continues to pursue growth and success for our valued
customers.
■ For the cultivation of maritime talents and sustainable development of
the local shipping industry, Evergreen steams up with National Taiwan

Ocean University to provide a special seafarer training program. The
18-month program is designed to offer professional engineering classes
to those who have a bachelor's degree and passion for ship maintenance
but lack a background in mechanical engineering departments of
maritime colleagues.
■ Evergreen is recognized for corporate governance excellence for the
third consecutive year.

■ Rolls out online price inquiry and booking platform with Alibaba.
com to offer guaranteed and more convenient sea freight services by

relying on the Evergreen Professional Logistics and Supply Chain
Management.
■ Evergreen Line is named “Best Shipping Line – Asia-Africa” by Asia
Cargo News at the 2017 Asian Freight, Logistics and Supply Chain
Awards (AFLAS).
■ OCEAN Alliance officially commences operations, with service
27
2 Company Profile
networks covering Asia-Europe/Mediterranean, Trans-Pacific, Asia-North America East

Coast, Trans-Atlantic trades and Far East-Middle East trades.
■ Evergreen Shipping Agency (Deutschland) Gmbh renamed to Evergreen Shipping Agency
(Europe) Gmbh, and merger of Evergreen shipping agencies in the Netherlands, Belgium,
France, Poland, Switzerland and Austria as branch offices.
■ Evergreen and its subsidiary, Peony Investment S.A. acquired 80% shares of Evergreen
Marine (Hong Kong) Ltd.
2018
■ Evergreen Line signed an agreement with Samsung Heavy Industries and Shoei Kisen
Kaisha, Ltd. to order eight and charter twelve 12,000 TEU container ships, total twenty ships.
■ Introducing paperless Bill of Lading and dispatch documentation via ShipmentLink digital
portal, Evergreen partners with Bolero International to provide advanced e-commerce

solution.
■ Evergreen Shipping Services (Cambodia) Company Limited founded.
■ Evergreen Line received the E-Commerce Excellence Award from LOG-NET for the fourth
time. Striving to create efficient information system and reliable service chain, Evergreen
continues to work for the growth and success of our valued customers.
■ Evergreen teams up with National Taiwan Ocean University again to provide a special
seafarer training program.

■ Acquire and merge Hatsu Marine (Hong Kong) Ltd.
■ Evergreen Shipping Agency (Peru) S.A.C. founded.
■ Evergreen Shipping Agency (Chile) SPA founded.
■ Evergreen Shipping Agency Mexico S.A.DE C.V. founded.
■ Order four 2,500 TEU, charter ten 2,500 TEU and twenty four 1,800 TEU container vessels.
2019
■ Evergreen Shipping Agency (Colombia) S.A.S. founded.
■ Announce to extend OCEAN Alliance agreement to 10 years until 2027, providing
unmatched service offering to customers.
28
2018 Annual Report
I. Organization
1. Organizational Chart
PUBLIC RELATIONS DEPT.

SHAREHOLDERS’
MEETING
HUMAN RESOURCES DEPT.
CLINIC DEPT.
FINANCE DIV.
AUDIT GENERAL AFFAIRS DEPT.

COMMITTEE
BOARD OF
DIRECTORS OCCUPATIONAL SAFETY &
CHAIRMAN REMUNERATION HEALTH DEPT.
COMMITTEE
PROJECT DEPT.
AUDITING DEPT. INSURANCE & CLAIM DEPT.
MARKETING DIV.
CORPORATE
SOCIAL LOGISTICS DIV.
RESPONSIBILITY
COMMITTEE MARITECH DEPT.
PRESIDENT
SEAMAN DEPT.
LEGAL DEPT.
(COMPETITION
COMPLIANCE OPERATION DEPT.
TEAM INCLUDED)
OPERATION COORDINATION
DEPT.
CHIEF EXECUTIVE
VICE PRESIDENT MAINTENANCE DEPT.
SUPPLY DEPT.
SHIPBUILDING DEPT.
KAOHSIUNG TERMINAL DIV.
29
3 Corporate Governance Report
2. Major Corporate Functions

(1) According to the company's articles of association, there are seven to nine directors
(including three independent directors) who are elected by the shareholders' meeting
according to law, and whose term of office is three years. The directors organize the
Board of Directors and are responsible for the resolution of the company's business.
The matter is attended by more than two-thirds of the directors and more than half
of the directors' consent. One person is elected as the chairman and another is the
vice chairman. The chairman of the board represents the company in all aspects of
business. In order to improve corporate governance and strengthen the functions of
the Board of Directors, the Board of Directors has an "Audit Committee" consisting
of all independent directors. The number of the directors shall not be less than
three, one of whom shall be the convener and at least one shall have accounting or
financial expertise. In addition, according to the "Remuneration Committee Charter"
of the Company, the Remuneration Committee is under the Board of Directors.
The members of the Committee shall not be less than three, one of whom is the
convener, and all members shall be appointed by the Board of Directors.
(2) The company has set up a general manager, and the appointment and dismissal are
approved by more than half of the Board of Directors. The general manager must
have a number of deputy general managers and other managers.
(3) Chief Executive Vice President: Assists the top management with monitoring and
achieving goals for businesses and operations.
(4) Corporate Social Responsibility Committee: The President, serving as the
Chairperson of the Committee, is responsible for the formulation of CSR policies.
Promote the implementation of CSR, and supervise all departments to achieve the
long-term and short-term goals set by the Company.
(5) Auditing Dept: Internal audit, inspection and review of the internal control system
to enhance effectiveness in operation.
(6) Legal Dept (Competition Compliance Team included): Corporate legal affairs
including contracts and litigation. Establish the company’s regulatory compliances,
provide training and ensure compliance with competition regulations.
(7) Public Relations Dept: Promote and protect the company’s image and its products.
Create and disseminate press releases.
(8) Human Resources Dept: Human resources management, talent recruitment and
retention, employees’ training and organizational development.
(9) Clinic Dept: Regular physical exams, health services and health management
including the provision of suitable health advice and fitness of work for both sea and
land crew.
30
2018 Annual Report
(10) Finance Div: Corporate finance and accounting, agency account assessment, and
investor relations.
(11) General Affairs Dept: General affairs, equipment maintenance and staff canteen.
(12) Occupational Safety & Health Dept: Occupational safety and health management
and supervision.
(13) Project Dept: Monitor global business strategy and performance, alliances,
chartered vessels, fleet deployment, agency management, IT integration and
industry research.
(14) Insurance & Claim Dept: Handle marine incidents and settlement of insurance
claims, vessel insurance planning, and provide legal counseling on marine
insurance.
(15) Marketing Div: Establish pricing guidelines and space control for all services.
(16) Logistics Div: Deployment of empty global containers, management of terminal
contracts, planning of inland transportation and container-related affairs.
(17) Maritech Dept: Vessel audit, marine navigation, engine technology enhancement,
and vessel energy efficiency management.
(18) Seaman Dept: Seaman human resources management, recruitment, dispatching,
and Evergreen Seafarer Training Center affairs.
(19) Operation Dept: Global short term sailing schedule, port cargo handling,
examination of out of gauge and dangerous cargoes.
(20) Operation Coordination Dept: Global long term sailing schedule, fleet fuel
consumption monitor and analysis, terminal/depot contract review and owned
terminal operation management.
(21) Maintenance Dept: Supervise vessel maintenance and repair operation,
maintenance system management, and equipment conversion projects.
(22) Supply Dept: Vessel supplies arrangement and management, vessel fuel and
lubricating oil procurement and monitor.
(23) Shipbuilding Dept: Shipbuilding planning, on-site supervising, vessel type
development and research, and related projects.
(24) Kaohsiung Terminal Div: Terminal operation, machinery and equipment
maintenance.
31
32
II. Directors and Management Team
1. Directors
APR. 23, 2019
Executives, Directors
Shareholding by
Shareholding When Current Spouses & Minor or Supervisors who are
Nominee
Elected Shareholding Shareholding Spouses or Within Two
Natio- Date First Date Arrangement
Title Name Gender Term Experience & Education Other Position Degress of Kinship
nality Elected Elected
(%) (%) (%) (%)
Shares Shares Shares Shares Title Name Relation
(Note 1) (Note 2) (Note 2) (Note 2)
Evergreen Steel
- R.O.C. 06.18.2014 06.22.2017 3 Years 30,075,742 0.856 38,261,703 0.848 - 0 0.000 - - -

Corp.
Vice Chairman:
Charng Yang Development Corp.
President, Evergreen Marine
Chairman Director:
Representative: Corporation (Taiwan) Ltd.
Taipei Port Container Terminal
Chang, Cheng- Male R.O.C. 01.01.2011 06.22.2017 3 Years 0 0.000 0 0.000 0 0.000 0 0.000 Bachelor of Business Ad- - - -
Corp.
Yung ministration Department of
Director and Manager:
Chinese Culture University
Greencompass Marine S.A.,
Gaining Enterprise S.A.
Chang Yung-
Fa Charity - R.O.C. 06.24.2011 06.22.2017 3 Years 28,940,403 0.824 34,482,423 0.764 - 0 0.000 - - -
Foundation
Director:
Evergreen International Storage &
Transport Corp., Evergreen Inter-
national Corp., Evergreen Steel
Director Vice Chairman, Evergreen Corp., Ever Reward Logistics
Representative: Marine Corp. (Taiwan) Ltd. Corp., Evergreen Marine (Hong Chang,
09.02.1976
Chang, Kuo- Male R.O.C. 06.22.2017 3 Years 0 0.000 319,646,157 7.083 47,176,327 1.045 0 0.000 Taipei College of Maritime Kong) Ltd., Evergreen Ship- Director Kuo- Brothers
(Note 3)
Hua Technology in Marine Engi- ping Agency (America) Corp., Ming
neering Evergreen Laurel Hotel (M) SDN.
BHD.
Evergreen International S.A.,
Colon Container Terminal S.A.
Shareholding by
Nominee
(%) (%) (%) (%)
Director, Evergreen Interna-

Representative: tional Corp. Director: Chang,
Chang, Kuo- Male R.O.C. 06.22.2017 06.22.2017 3 Years 0 0.000 116,861,569 2.589 39,367,531 0.872 0 0.000 Bachelor of Science in Electri- Central Reinsurance Corp., Director Kuo- Brothers
Ming cal Engineering, University of Evergreen International S.A. Hua
Southern California
Evergreen
03.25.1988
International - Panama 06.22.2017 3 Years 373,130,301 10.623 391,786,816 8.681 - 0 0.000 - - -
(Note 4)
S.A.
Chairman:
Evergreen International Corp.
Director:
EVA Airways Corp., Evergreen
International Storage &Transport
Corp., Taiwan High Speed Rail
Corp., Evergreen Steel Corp., Ev-
ergreen Security Corp., Shun An
Director Enterprise Corp., Charng Yang
Vice Group Chairman, Ever-
Development Corp., Evergreen
Representative: 06.12.1982 green Group.
Female R.O.C. 06.22.2017 3 Years 0 0.000 92,563 0.002 0 0.000 0 0.000 Marine (Singapore) Pte. Ltd. - - -
Ko, Lee-Ching (Note 5) Keelung Girls' Senior High
School
Evergreen International S.A.,
Supervisor:
Ever Reward Logistics Corp., Ev-
ergreen Air Cargo Services Corp.,
Evergreen Airline Services Corp.,
Hsin Yung Enterprise Corp., Ever
Ecove Corp.
33
2018 Annual Report
34
Shareholding by
Nominee
(%) (%) (%) (%)
President:
Evergreen Marine Corporation
Vice Chairman, Italia Marit-
(Taiwan) Ltd.
tima S.p.A.
Representative: Director:
Bachelor of Transportation
Hsieh, Huey- Male R.O.C. 03.18.2016 04.15.2019 1.2 Years 0 0.000 139,752 0.003 0 0.000 0 0.000 PT. Evergreen Shipping Agency - - -
Engineering and Manage-
Chuan Indonesia
ment of National Chiao Tung
University
Chairman, Chunghwa Post

Co., Ltd.
Political Deputy Minister,
Independent Ministry of Transportation &
Yu, Fang-Lai Male R.O.C. 06.22.2017 06.22.2017 3 Years 0 0.000 0 0.000 0 0.000 0 0.000 - - - -
Director Communications
MBA of Institute of Manage-
ment Science of National
Chiao Tung University
Tai-Yang Life Science Busi-

ness Law Office Attorney-in-
Charge
Master degree:
Independent Chang, Chia- Tai-Yang Life Science Business
Male R.O.C. 06.18.2014 06.22.2017 3 Years 0 0.000 0 0.000 0 0.000 0 0.000 School of Law of National - - -
Director Chee Law Office Attorney-in-Charge
Taiwan University,
College of Medicine Institute
of Molecular Medicine of
National Taiwan University
Shareholding by
Nominee
(%) (%) (%) (%)
Partner, CPA, Zhi Cheng CPAs &

Partner, PricewaterhouseC-
Co.
oopers, Taiwan
Independent Independent Director:
Li, Chang-Chou Male R.O.C. 06.22.2017 06.22.2017 3 Years 0 0.000 0 0.000 0 0.000 0 0.000 Master of Accounting, Uni- - - -
Director Kuen Ling Refrigerating Machin-
versity of Illinois at Urbana-
ery C0. Ltd., Axcen Photonics
Champaign
Corp., Silicon Optronics, Inc.
Note 1: The Company had issued 3,512,355,986 shares when current Board of Directors was elected on 06/22/2017.
Note 2: As of 04/23/2019, the Company has issued 4,512,973,786 shares.
Note 3: Mr. Chang, Kuo-Hua has served as a director of the Company from 09/02/1976 to 12/31/1998, 06/20/2001 to 06/24/2004, 06/19/2008 to 06/24/2011,
and from 06/18/2014 till present.
Note 4: Evergreen International S.A. has appointed representatives to serve as directors or supervisors of the Company from 03/25/1988 to 10/27/1989,
06/20/2001 to 06/27/2007, and from 06/19/2009 till present.
Note 5: Ms. Ko, Lee-Ching has served as a director or supervisor of the Company from 06/12/1982 to 03/31/1983, 06/11/1983 to 06/12/1984, and from
05/09/1992 till present.
35
2018 Annual Report
(2) Major shareholders of the institutional shareholders

APR. 23, 2019
Major Shareholders of Institutional

Name of Institutional Shareholder
Shareholder
Evergreen International Corp. (30.26%),

EVA Airways Corp. (9.42%),
Continental Engineering Corp. (6.33%),
Chang, Kuo-Hua (6.17%),
Chang, Kuo-Ming (6.17%),
Evergreen Steel Corp.
Chang, Kuo-Cheng (6.17%),
Chang Yung-Fa Foundation (6.17%),
Ming Yu Investment Co., Ltd. (4.36%),
Wei-Dah Development Co., Ltd. (3.16%),
TSRC Corp. (3%)
Chang Yung-Fa Charity Foundation Non-profit Organization
Chang, Yung-Fa (20%),

Chang, Kuo-Hua (20%),
Evergreen International S.A. (Panama) Chang, Kuo-Ming (20%),
Chang, Kuo-Cheng (20%),
Pieca Corp. (20%)
Note: The data is provided by institutional shareholders, and from public information on
Ministry of Economic Affairs website and MOPS.
(3) Major shareholders of the Company’s major institutional shareholders

APR. 23, 2019
Name of Institutional Major Shareholders of

Legal Entity
Shareholders Institutional Shareholders
Chang Yung-Fa Foundation (28.86%),

Chang, Kuo-Cheng (16.67%),
Chang, Kuo-Hua (12.90%),
Evergreen Steel Evergreen International Lee, Yu-Mei (7.14%),
Corp. Corp. Chen, Hui-Chu (5.81%),
Yang, Mei-Chen (5.10%),
Chang Yung-Fa Charity Foundation (5.00%),
Chang, Yung-Fa (5.00%),
Tseng, Chiung-Hui (1.33%)
36
2018 Annual Report
Name of Institutional Major Shareholders of

Legal Entity
Shareholders Institutional Shareholders
Evergreen Marine Corp. (Taiwan) Ltd. (16.09%),

Evergreen International Corp. (11.38%),
Falcon Investment Services Ltd. (10.71%),
Evergreen Steel Corp. (5.02%),
Chang, Yung-Fa (2.73%),
EVA Airways Corp. Chang, Kuo-Cheng (1.92%),
New Labor Pension Fund (1.69%),
Evergreen International Storage & Transport
Corp. (1.08%),
Chang, Kuo-Hua (0.87%)
Continental Engineering
Continental Holdings Corp. (100%)
Corp.
Chang Yung-Fa
Non-profit Organization
Foundation
Ming Yu Investment
Evergreen Steel Corp. (100%)
Co., Ltd.
Wei-Dah Development
Ching Shan Zhen Investment Corp. (99.8%)
Co., Ltd.
Panama Banco Industrial Company (8.4%),

Hao Ran Foundation (7.3%),
Wei Dah Development Co., Ltd. (6.5%),
CITI bank Taiwan branch in custody for Gov-
ernment of Singapore Investment Fund (5.3%),
Tamerton Group Limited (4.2%),
TSRC Corp.
Fubon Life Insurance Co., Ltd. (3.8%),
Cathay Life Insurance Co., Ltd. (3.8 %),
Metacity Development Corp. (3.8%),
Nan Shan Life Insurance Co., Ltd. (2.2%),
Public Service Pension Fund Supervisory
Board. (2.2%)
Evergreen
International Pieca Corp. Chang, Kuo-Wei (100% )
S.A. (Panama)
Note: The data ia provided by institutional shareholders, and from public information on
Ministry of Economic Affairs Website and MOPS.
37
(4) Professional qualifications and independence analysis of directors

APR. 23, 2019
Criteria Meet One of the Following Professional Qualification

Requirements, Together with at Least Five Years Independence Criteria(Note)
Work Experience
An Instructor or A Judge, Public Have Work

Higher Position Prosecutor, Attor- Experience in Number of
in a Department ney, Certified Pub- the Areas of Other Public
of Commerce, lic Accountant, or Commerce, Companies
Law, Finance, Other Professional Law, Finance, in Which the
Accounting, or or Technical Spe- or Accounting, Individual is
Other Academic cialist Who has or Otherwise Concurrently
Department Passed a National Necessary for 1 2 3 4 5 6 7 8 9 10 Serving as
Related to the Examination and the Business an Indepen-
Business Needs been Awarded a of the Com- dent Director
of the Company Certificate in a pany
in a Public or Profession Nec-
Private Junior essary for the
College, College Business of the
Name or University Company
Evergreen Steel
Corp.
3 3 3 3 3 3 3 3 3 3 0
Representative:
Chang, Cheng-Yung
Chang Yung-Fa
Charity
Foundation 3 3 3 3 3 0
Representative:
Chang, Kuo-Hua
Chang Yung-Fa
Charity
Foundation 3 3 3 3 3 3 0
Representative:
Chang, Kuo-Ming
Evergreen Interna-
tional S.A.(Panama)
3 3 3 3 3 3 3 3 0
Representative: Ko,
Lee-Ching
Evergreen Interna-
tional S.A.(Panama)
3 3 3 3 3 3 3 3 3 0
Representative:
Hsieh, Huey-Chuan
Yu, Fang-Lai 3 3 3 3 3 3 3 3 3 3 3 0
Chang, Chia-Chee 3 3 3 3 3 3 3 3 3 3 3 3 0
Li, Chang-Chou 3 3 3 3 3 3 3 3 3 3 3 3 3
38
2018 Annual Report
Note: Please tick the corresponding boxes that apply to the directors or supervisors during
the two years prior to being elected or during the term of office.
1. Not an employee of the Company or any of its affiliates.
2. Not a director or supervisor of the Company or any of its affiliates. Not applicable
in cases where the person is an independent director of the Company, its parent
company, or any subsidiary as appointed in accordance with the Act or with the
laws of the country of the parent or subsidiary.
3. Not a natural-person shareholder who holds shares, together with those held by the
person’s spouse, minor children, or held by the person under others’ names, in an
aggregate amount of 1% or more of the total number of outstanding shares of the
Company or ranking in the top 10 in holdings.
4. Not a spouse, relative within the second degree of kinship, or lineal relative
within the third degree of kinship, of any of the persons in the preceding three
subparagraphs.
5. Not a director, supervisor, or employee of a corporate shareholder who directly
holds 5% or more of the total number of outstanding shares of the Company or
who holds shares ranking in the top five holdings.
6. Not a director, supervisor, officer, or shareholder holding 5% or more of the shares,
of a specified company or institution which has a financial or business relationship
with the Company.
7. Not a professional individual who is an owner, partner, director, supervisor, or
officer of a sole proprietorship, partnership, company, or institution that provides
commercial, legal, financial, accounting services or consultation to the Company or
to any affiliate of the Company, or a spouse thereof. These restrictions do not apply
to any member of the remuneration committee who exercises powers pursuant to
Article 7 of the “Regulations Governing the Establishment and Exercise of Powers
of Remuneration Committees of Companies whose Stock is Listed on the TWSE or
Traded on the TPEx“.
8. Not having a marital relationship, or a relative within the second degree of kinship to
any other director of the Company.
9. Not been a person of any conditions defined in Article 30 of the Company Law.
10. Not a governmental, juridical person or its representative as defined in Article 27 of
the Company Law.
39
40
2. Management Team
APR. 23, 2019
Shareholding by Managers Who are
Spouse & Minor
Shareholding Nominee Spouses or within Two
Title Nationality Name Gender Date Effective Shareholding Experienc & Education Other
Arrangment Degrees of Kinship
Shares % Shares % Shares % Title Name Relation
Director:
Exp: Italia Marittima S.P.A. Vice
PT. Evergreen Shipping
Chairman
Hsieh, Huey- Agency Indonesia
President R.O.C Male 04.15.2019 139,752 0.00 0 0.00 0 0.00 Edu: National Chiao Tung University - - -
Chuan Director And Manager:
Transportation and Logistics
Management
Director:
EVA Airways Corp., Taipei
Port Container Terminal
Exp: Evergreen Marine Corp. Corp.
(Taiwan) Ltd. Finance Div. Supervisor:
Chief Executive
Executive Vice President UNI Airways Corp.,
Vice President R.O.C Wu, Kuang-Hui Male 07.01.2018 21,098 0.00 0 0.00 0 0.00 - - -
Edu: National Sun Yat-Sen Evergreen Steel Corp.,
(Finance Officer)
University Business Evergreen Security Corp.,
Management Taiwan Terminal Services
Corp., Charng Yang Devel-
opment Corp., Hsiang-Li
Investment Corp.
Exp: Evergreen Shipping Agency

(Europe) GmbH President
Project Dept.
Edu: National Chung Hsing
Executive Vice R.O.C Wei, Wei-Der Male 02.27.2019 52,500 0.00 0 0.00 0 0.00 - - - -
University
President
Finance And Cooperative
Management
Spouse & Minor

Project Dept. (Europe) Gmbh France Branch
Tang, Chia-
Executive Vice R.O.C Male 07.06.2018 0 0.00 0 0.00 0 0.00 President - - - -
Sheng
President Edu: Tamkang University
International Business
Finance Div. Exp: Italia Marittima S.P.A. Finance

Executive Vice R.O.C Tsai, I-Jung Male 07.01.2014 0 0.00 0 0.00 0 0.00 Dept. Senior Vice President - - - -
President Edu: Tamkang University Accounting
Marketing Div. Exp: Evergreen Shipping Agency

Peng, Chen-
Executive Vice R.O.C Male 08.09.2014 63,694 0.00 5,000 0.00 0 0.00 (Japan) Corp. President - - - -
Hsiang
President Edu: Tamkang University English

Logistics Div. (Netherlands) B.V. President
Executive Vice R.O.C Lin, Wen-Kuei Male 02.25.2017 3,972 0.00 0 0.00 0 0.00 Edu: National Taiwan Ocean - - - -
President University
Merchant Marine
Shipbuilding
Dept.(Be Exp: Evergreen Marine Corp.
Concurrently (Taiwan) Ltd. Engineering Div.
In Charge Of Shipbuilding Dept. Senior Vice
Maritech/Sea- Huang, Tsung- President
R.O.C Male 07.01.2018 105,000 0.00 0 0.00 0 0.00 - - - -
man/ Mainte- Yung Edu: National Taiwan Ocean
nance/Supply University
Dept.) Systems Engineering And
Executive Vice Naval Architecture
President
41
2018 Annual Report
42
Spouse & Minor
Exp: Evergreen International S.A.

Project Dept.
Tseng, Neng- HK Representative
Senior Vice R.O.C Male 01.01.2019 5,000 0.00 0 0.00 0 0.00 - - - -
Fang Edu: Tunghai University
President
International Business
Exp: Evergreen Group Management

Human Re-
Office Junior Vice President
sources Dept.
R.O.C Yang, Pi-Sao Female 01.01.2014 65,750 0.00 0 0.00 0 0.00 Edu: Lawrence Technological - - - -
Senior Vice
University
President
Business Administration
Exp: Italia Marittima S.P.A

Finance Div.
Chief Executive Vice President
Finance Dept.
R.O.C Mo, Cheng-Ping Male 02.22.2017 58,000 0.00 1,269 0.00 0 0.00 Edu: Tamsui Institute Of Business - - - -
Senior Vice
Administration Public Finance
President
And Taxation
Finance Div. Exp: Evergreen International Corp.

Senior Vice President,
Stocks Dept. Stocks Dept. Senior Vice
R.O.C Hsieh, Shu-Hui Female 04.27.2016 0 0.00 0 0.00 0 0.00 Stock Dept., Evergreen - - -
Senior Vice President
International Corp.
President Edu: Soochow University Law
Exp: Evergreen Marine Corp.

Insurance & (Taiwan) Ltd. Project Div.
Claim Dept. Deputy Senior Vice President
R.O.C Lin, An-Kwo Male 11.01.2014 0 0.00 0 0.00 0 0.00 - - - -
Senior Vice Edu: National Taiwan Ocean
Merchant Marine
Spouse & Minor

Marketing Div. (Taiwan) Ltd. Marketing Div.
Senior Vice R.O.C Wang, Pei-Chun Male 07.15.2017 7,956 0.00 0 0.00 0 0.00 Junior Vice President - - - -
President Edu: University Of Hertfordshire

Logistics Div.
(Taiwan) Ltd. International
Equipment
Business Div. Eastbound Dept.
Control Dept. R.O.C Liu, An-Hua Male 10.08.2015 40,500 0.00 0 0.00 0 0.00 - - - -
Senior Vice
Edu: Chinese Culture University
President
English Language & Literature
Exp: Master International Shipping

Logistics Div.
Agency Co. Ltd. Shanghai
Equipment
Branch Logistics Dept. Senior
Service Dept. R.O.C Wu, Chi-Hui Male 08.04.2018 0 0.00 10,908 0.00 0 0.00 - - - -
Vice President
Senior Vice
Edu: China Junior College Of Marine
President
Technology Marine Engineering

Logistics Div.
(Taiwan) Ltd. Project Div. Junior
Intermodal
Vice President
Dept. R.O.C Kuo, Yuan-Ping Male 01.01.2019 22 0.00 0 0.00 0 0.00 - - - -
Edu: National Taiwan University Of
Senior Vice
Science And Technology
President
Mechanical Engineering
43
2018 Annual Report
44
Spouse & Minor

Operation (Europe) Gmbh Netherlands
Coordination Branch
Hwang, Wen-
Dept. R.O.C Male 03.15.2018 169,883 0.00 0 0.00 0 0.00 European Operation Center. - - - -
Yau
Senior Vice Senior Vice President
President Edu: China Junior College Of Marine

Technology Navigation

(Taiwan) Ltd. Project Dept.
Maintenance
Dept. Kung, Chir-
R.O.C Male 02.05.2018 170,743 0.00 0 0.00 0 0.00 Edu: National Taiwan Ocean - - - -
Senior Vice Chieh
University
President
Systems Engineering And
Naval Architecture
Exp: Italia Marittima S.P.A. Marine &

Supply Dept. Operation Dept. Executive Vice
Senior Vice R.O.C Wang, Lin-Fa Male 12.28.2017 30,000 0.00 0 0.00 0 0.00 President - - - -
President Edu: China Junior College Of Marine

(Taiwan) Ltd. Engineering Div.
Shipbuilding Shipbuilding Dept. Deputy
Dept. Chiang, Shou- Senior Vice President
R.O.C Male 01.01.2006 0 0.00 0 0.00 0 0.00 - - - -
Senior Vice Hsing Edu: National Taiwan Ocean
Systems Engineering And
Naval Architecture
Spouse & Minor
KSG Terminal Exp: Colon Container Terminal S.A.

Taiwan Terminal Services
Div. Chairman & President
R.O.C Chang, Yen-I Male 06.06.2018 22,979 0.00 0 0.00 0 0.00 Corp. Ltd. - - -
Senior Vice Edu: China Junior College Of Marine
Chairman
President Technology Navigation
KSG Terminal
Exp: P.T. MBPI/MBT President
Div. Liaw, Yeong-
R.O.C Male 02.24.2017 113,092 0.00 0 0.00 0 0.00 Edu: China Junior College Of Marine - - - -
Senior Vice Nian
President
Exp: Evergreen International Corp.

Computer Div. Software
Project Dept. Designing Dept. Ii Deputy
Jou, Kuen-
Deputy Senior R.O.C Male 02.01.2012 11,816 0.00 224 0.00 0 0.00 Senior Vice President - - - -
Cheng
Vice President Edu: National Taipei College Of
Business
Information Management
Exp: Evergreen Marine (Uk) Limited

Project Div. Deputy Senior Vice
Project Dept.
Sheu, Dong- President
Deputy Senior R.O.C Male 12.20.2012 0 0.00 0 0.00 0 0.00 - - - -
Han Edu: National Chung Hsing
Vice President
University
Economics

Business Div. America Dept.
Project Dept. Deputy Senior Vice President
Deputy Senior R.O.C Chen, Chun-Yen Male 03.11.2019 147,000 0.00 0 0.00 0 0.00 Edu: National Taiwan Ocean - - - -
Vice President University
Shipping And Transportation
Management
45
2018 Annual Report
46
Spouse & Minor

(Taiwan) Ltd. Finance Div.
Auditing Dept.
Finance Dept.
Deputy Senior R.O.C Wu, Yu-Chi Female 01.01.2015 15,549 0.00 0 0.00 0 0.00 - - - -
Junior Vice President
Vice President
Edu: Chungyu Institue of
Technology Accounting

Human Re- Branch Human Resources
sources Dept. Dept. Junior Vice President
R.O.C Chien, Shen-Tai Male 01.01.2016 0 0.00 0 0.00 0 0.00 - - - -
Deputy Senior Edu: National Cheng Kung
Industrial Information
Management
Marketing Div. Exp: Evergreen Shipping Agency

North America (America) Corp. Atlanta Office
Huang, Hsin-
Dept. R.O.C Male 07.01.2016 0 0.00 0 0.00 0 0.00 Junior Vice President - - - -
Yen
Deputy Senior Edu: National Central University
Vice President Business Administration

Marketing Div.
Europe & Africa Dept.
Latin America
Deputy Senior Vice President
Dept. R.O.C Su, Ming-Sung Male 03.12.2018 86 0.00 0 0.00 0 0.00 - - - -
Edu: National Chiao Tung University
Deputy Senior
Transportation And Logistics
Vice President
Management
Spouse & Minor
Exp: PT. Evergreen Shipping

Marketing Div.
Agency Indonesia President
Intra Asia Dept.
R.O.C Wu, Yi-Min Male 01.01.2015 0 0.00 0 0.00 0 0.00 Edu: National Chung Hsing - - - -
Deputy Senior
University
Vice President

Marketing Div.
(Taiwan) Ltd. Marketing Div.
Europe & Africa
Europe & Africa Dept.
Dept. R.O.C Lin, Sheng-Chia Male 07.15.2017 7,000 0.00 0 0.00 0 0.00 - - - -
Junior Vice President
Deputy Senior
Edu: Feng Chia University Transpor-
Vice
tation and Logistic
Marketing Div.
Near East
Hsu, Huan- (India) Private Ltd. President
Dept. R.O.C Male 08.25.2018 30,000 0.00 0 0.00 0 0.00 - - - -
Chang Edu: Soochow University
Deputy Senior
Vice President

(Taiwan) Ltd. Maritech Dept.
Maritech Dept.
Yang, Hong- Junior Vice President
Deputy Senior R.O.C Male 01.01.2019 95,550 0.00 0 0.00 0 0.00 - - - -
Ming Edu: National Chiao Tung University
Vice President
Transportation & Logistics
Management

Maritech Dept. (Taiwan) Ltd. Maintenance
Jeng, Jen-
Deputy Senior R.O.C Male 07.15.2017 90,083 0.00 0 0.00 0 0.00 Dept. Junior Vice President - - - -
Cherng
Vice President Edu: China Junior College Of Marine
47
2018 Annual Report
48
Spouse & Minor

(Taiwan) Ltd. Maritech Dept.
Seaman Dept. Deputy Senior Vice President
Deputy Senior R.O.C Li, Hua-Lung Male 01.01.2018 80,000 0.00 0 0.00 0 0.00 Edu: National Taiwan Ocean - - - -
Shipping and Transportation
Management

Operation (Taiwan) Ltd. Operation
Dept. Coordination Dept.
R.O.C Hwang, Yi-Syou Male 04.01.2018 0 0.00 0 0.00 0 0.00 - - - -
Deputy Senior Deputy Senior Vice President
Vice Edu: China Junior College Of Marine
Technology Navigation
Operation
Coordination
Chang, Chih- (Taiwan) Ltd. Project Dept.
Dept. R.O.C Male 02.01.2018 85,264 0.00 539 0.00 0 0.00 - - - -
Chao Deputy Senior Vice President
Deputy Senior
Edu: Tamkang University Navigation
Vice President
Operation Exp: Evergreen International Corp.

Coordination Business Div. Intra Asia Dept.
Yeh, Cheng-
Dept. R.O.C Male 03.18.2019 21,000 0.00 0 0.00 0 0.00 Deputy Senior Vice President - - - -
Hung
Deputy Senior Edu: National Chiao Tung University
Vice President Management Science
Spouse & Minor

Maintenance (Taiwan) Ltd. Maritech Dept.
Dept. Chen, Jenn- Deputy Senior Vice President
R.O.C Male 05.08.2017 55,000 0.00 0 0.00 0 0.00 - - - -
Deputy Senior Hwang Edu: National Taiwan Ocean
Marine Engineering

(Taiwan) Ltd. Engineering Div.
Maintenance
Maintenance Dept. Junior Vice
Dept. Yeh, Ching-
R.O.C Male 01.01.2015 52,500 0.00 609 0.00 0 0.00 President - - - -
Deputy Senior Rong
Edu: National Taiwan Ocean
Vice President
University
Marine Engineering

Maintenance
Branch Engineering Dept.
Dept. Con, Kuo-
R.O.C Male 08.01.2017 21,000 0.00 3,662 0.00 0 0.00 Deputy Senior Vice President - - - -
Deputy Senior Chung
Edu: National Keelung Maritime
Vice President
Vocational High School
Marine Branch
KSG Terminal Exp: Taranto Container Terminal

Div. S.P.A.
Terminal Op- Hwang, Ming- Terminal Operation Dept.
R.O.C Male 07.15.2016 87,221 0.00 0 0.00 0 0.00 - - - -
eration Dep. Ling Junior Vice President
Deputy Senior Edu: China Junior College Of Marine
Vice President Technology Navigation
49
2018 Annual Report
50
Spouse & Minor

Finance Div.
(Taiwan) Ltd. Finance Div.
Finance Dept.
Finance Dept.
Junior Vice Chang, Chuan-
R.O.C Male 01.01.2019 5,000 0.00 0 0.00 0 0.00 Deputy Junior Vice President - - - -
President Fu
Edu: National Chung Hsing
(Accounting
University
Supervisor)
Public Finance
3. Remuneration of Directors, President and Vice Presidents
(1) Remuneration of Directors
Unit: NTS thousands
Remuneration Relevant Remuneration Received by Directors Who are Also Employees Ratio of Total
Ratio of Total Remu-
Compensation
Directors neration (A+B+C+D) Salary, Bonuses, and Compensation
Base Compensation Allowances (D) to Net Income (%) Employee Compensation (G) (A+B+C+D+E+F+G)
Severance Pay (B) Compensation (C) Allowances (E) Severance Pay (F) to Net Income (%) from an
(A) (Note 1) (Note 3) (Note 7) (Note 5)
(Note 2) (Note 4) (Note 7) Invested
Company
Title Name Consolidated
Consolidated Other than the
Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Subsidiaries
EMC Subsidiaries Company’s
Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries of EMC Subsidiaries
EMC EMC EMC EMC EMC EMC EMC EMC of EMC
of EMC of EMC of EMC of EMC of EMC of EMC of EMC (Note 6) (Note 8)
(Note 6)
(Note 6) (Note 6) (Note 6) (Note 6) (Note 6) (Note 6) (Note 6)
Cash Stock Cash Stock
Evergreen Steel
Corp. Represen-
Chairman 5,511 5,511 0 0 0 0 522 522 2.05% 2.05% 0 0 0 0 0 0 0 0 2.05% 2.05% 24
tative: Chang,
Cheng-Yung
Chang Yung-Fa
Charity Founda-
Director tion Representa- 0 0 0 0 0 0 42 42 0.01% 0.01% 0 0 0 0 0 0 0 0 0.01% 0.01% 736
tive: Chang, Kuo-
Hua
Chang Yung-Fa
Charity Founda-
tion
Director 0 0 0 0 0 0 30 30 0.01% 0.01% 0 0 0 0 0 0 0 0 0.01% 0.01% 0
Representative:
Chang, Kuo-
Ming
51
2018 Annual Report
52
Remuneration Relevant Remuneration Received by Directors Who are Also Employees Ratio of Total
Ratio of Total Remu-
Compensation
Directors neration (A+B+C+D) Salary, Bonuses, and Compensation
Base Compensation Allowances (D) to Net Income (%) Employee Compensation (G) (A+B+C+D+E+F+G)
Severance Pay (B) Compensation (C) Allowances (E) Severance Pay (F) to Net Income (%) from an
(A) (Note 1) (Note 3) (Note 7) (Note 5)
(Note 2) (Note 4) (Note 7) Invested
Company
Title Name Consolidated
Consolidated Other than the
Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Subsidiaries
EMC Subsidiaries Company’s
Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries of EMC Subsidiaries
EMC EMC EMC EMC EMC EMC EMC EMC of EMC
of EMC of EMC of EMC of EMC of EMC of EMC of EMC (Note 6) (Note 8)
(Note 6)
(Note 6) (Note 6) (Note 6) (Note 6) (Note 6) (Note 6) (Note 6)

Cash Stock Cash Stock
Evergreen
International S.A.
Director 0 0 0 0 0 0 42 42 0.01% 0.01% 0 0 0 0 0 0 0 0 0.01% 0.01% 2,378
Representative:
Ko, Lee-Ching
Evergreen
International S.A.
Director 0 0 0 0 0 0 36 36 0.01% 0.01% 4,400 4,400 108 108 6 0 6 0 1.56% 1.56% 0
Representative:
Lee, Mong-Jye
Evergreen Steel
Corp. Represen-
Director 0 0 0 0 0 0 42 42 0.01% 0.01% 3,397 3,397 367 367 6 0 6 0 1.30% 1.30% 18
tative: Hsieh,
Huey-Chuan
Independent Chang, Chia-

960 960 0 0 0 0 66 66 0.35% 0.35% 0 0 0 0 0 0 0 0 0.35% 0.35% 0
Director Chee
Independent
Yu, Fang-Lai 960 960 0 0 0 0 66 66 0.35% 0.35% 0 0 0 0 0 0 0 0 0.35% 0.35% 0
Director
Independent
Li, Chang-Chou 960 960 0 0 0 0 66 66 0.35% 0.35% 0 0 0 0 0 0 0 0 0.35% 0.35% 0
Director
Note 1: Includes directors’ salary, subsidy, leave pay and bonus.
Note 2: The directors’ remuneration has been approved by Board of Directors
Note 3: Includes the relevant business execution expenses of directors in 2018 (including transportation allowance, special expenses, various allowances,
dormitory, car and other physical supplies, etc.). If there is a driver, please note the company's payment for the driver, but the payment does not count
the remuneration.
Note 4: Relevant remuneration received by directors who are also employees (including president, Executive Vice President, other managers and employees),
including salary, subsidy, leave pay and bonus, etc. If there is a driver, please note the company's payment for the driver, but the payment does not count
the remuneration. The salary recognized in accordance with IFRS 2 “Share-based payment”, including obtaining employee stock option certificates,
restricted stock awards and participating in capital increased by cash shall also be included in the remuneration.
Note 5: The compensation for employees has been approved by Board of Directors.
Note 6: Includes the total amount received from EMC and its consolidated subsidiaries.
Note 7: Net income is the profit after tax of the parent-company-only financial statements.
Note 8: The directors received the compensation from other invested companies, which are not subsidiaries.
53
2018 Annual Report
54
(2) Remuneration of the President and Vice Presidents
Unit: NT$ thousands
Ratio of total compen- Compensation
Bonuses and
Salary(A) Employee Compensation (D) sation (A+B+C+D) to Paid to the
Severance Pay (B) Allowances (C)
(Note 1) (Note 3) net income (%) President and
(Note 2)
(Note 6) Vice Presidents
Title Name from an Invested
Consolidated Consolidated Consolidated Consolidated Consolidated Company Other
Subsidiaries Subsidiaries Subsidiaries EMC Subsidiaries Subsidiaries
EMC EMC EMC EMC than the
of EMC of EMC of EMC of EMC (Note 4) of EMC
Company’s
(Note 4) (Note 4) (Note 4) Cash Stock Cash Stock (Note 4) Subsidiary (Note 7)
President Lee, Mong-Jye
Chief Executive Vice

Hu, Daw-Ming
President

Wu, Kuang-Hui
President
Executive Vice President Hsieh, Huey-Chuan
Executive Vice President Peng, Chen-Hsiang
Executive Vice President Yang, Lii-Yueh

30,284 30,284 3,138 3,138 6,131 6,131 50 0 50 0 13.47% 13.47% 1,666
Executive Vice President Lin, Charng-Shyang
Executive Vice President Yu, Hui-Kwang
Executive Vice President Tsai, Bein-Hui
Executive Vice President Tsai, I-Jung
Executive Vice President Huang, Tsung-Yung
Executive Vice President Lin, Wen-Kuei
Executive Vice President Tang, Chia-Sheng

2018 Annual Report
Unit: NT$
Name of President and Executive Vice

Presidents
Range of Remuneration
Consolidated
EMC (Note 5)
Subsidiaries of EMC
Yu, Hui-Kwang Yu, Hui-Kwang

Under NT$ 2,000,000
Tang, Chia-Sheng Tang, Chia-Sheng
Lee, Mong-Jye Lee, Mong-Jye

Hu, Daw-Ming Hu, Daw-Ming
Wu, Kuang-Hui Wu, Kuang-Hui
Hsieh, Huey-Chuan Hsieh, Huey-Chuan
Peng, Chen-Hsiang Peng, Chen-Hsiang
NT$2,000,001 ~ NT$4,999,999 Yang, Lii-Yueh Yang, Lii-Yueh
Lin, Charng-Shyang Lin, Charng-Shyang
Tsai, Bein-Hui Tsai, Bein-Hui
Tsai, I-Jung Tsai, I-Jung
Huang, Tsung-Yung Huang, Tsung-Yung
Lin, Wen-Kuei Lin, Wen-Kuei
NT$5,000,000 ~ NT$9,999,999 0 0
NT$10,000,000 ~ NT$14,999,999 0 0
NT$15,000,000 ~ NT$29,999,999 0 0
NT$30,000,000 ~ NT$49,999,999 0 0
NT$50,000,000 ~ NT$99,999,999 0 0
Over NT$100,000,000 0 0
Total 13 13
Note 1: Includes President and Executive Vice Presidents’ salary, allowance, leave pay.
Note 2: Includes President and Executive Vice Presidents’ bonus, transportation allowance,
special expenses, various allowances, dormitory, car and other physical supplies,
etc. If there is a driver, please note the company's payment for the driver, but the
payment does not count the allowance. The salary recognized in accordance
with IFRS 2 “Share-based payment”, including obtaining employee stock option
certificates, restricted stock awards and participating in capital increased by cash
shall also be included in the remuneration.
Note 3: The compensation for employees has been approved by Board of Directors.
Note 4: Includes the total amount received from EMC and its consolidated subsidiaries.
55
Note 5: The name of the President and Executive Vice President is disclosed according to their total
remuneration received from the Company.
Note 6: Net income is the profit after tax of the parent-company-only financial statements.
Note 7: The President and Executive Vice Presidents received the compensation from other invested
companies, which are not subsidiaries.
(3) Name and distribution of managers who distribute employee compensation

Dec. 31, 2018
Unit: NT$ thousands
Employee Employee Ratio of Total

Title Compensation Compensation Amount to Net
Name Total
(Note 1) in Stock in Cash Income (%)
(Note 2) (Note 2) (Note 3)
President Lee, Mong-Jye

President Wu, Kuang-Hui
(Financial Officer)
Executive Vice President Hsieh, Huey-Chuan
Executive Vice President Tang, Chia-Sheng
Executive Vice President Yang, Lii-Yueh
Executive Vice President Tsai, I-Jung
Executive Vice President Peng, Chen-Hsiang
Executive Executive Vice President Tsai, Bein-Hui

0 185 0 0.06
Officers
Executive Vice President Lin, Wen-Kuei
Executive Vice President Huang, Tsung-Yung
Senior Vice President Yang, Pi-Sao
Senior Vice President Mo, Cheng-Ping
Senior Vice President Lin, An-Kwo
Senior Vice President Wang, Pei-Chun
Senior Vice President Huang, Ming-Jer
Senior Vice President Liu, An-Hua
Senior Vice President Wu, Chi-Hui
56
2018 Annual Report

Name Total
Senior Vice President Lu, Huang-Chuan
Senior Vice President Hwang, Wen-Yau
Senior Vice President Kung, Chir-Chieh
Senior Vice President Wang, Lin-Fa
Senior Vice President Chiang, Shou-Hsing
Senior Vice President Chang, Yen-I
Deputy Senior Vice

Tseng, Neng-Fang
President
Deputy Senior Vice

Kuo, Yuan-Ping
President
Deputy Senior Vice

Jou, Kuen-Cheng
President
Deputy Senior Vice

Sheu, Dong-Han
President
0 185 0 0.06
Deputy Senior Vice
Shih, Wang-Yi
President
Deputy Senior Vice

Yeh, Cheng-Hung
President
Deputy Senior Vice

Wu, Yu-Chi
President
Deputy Senior Vice

Chien, Shen-Tai
President
Deputy Senior Vice

Huang, Hsin-Yen
President
Deputy Senior Vice

Su, Ming-Sung
President
Deputy Senior Vice

Lin, Sheng-Chia
President
Deputy Senior Vice

Cheng, Min-Chou
President
57

Name Total
Deputy Senior Vice

Wu, Yi-Min
President
Deputy Senior Vice

Hsu, Huan-Chang
President
Deputy Senior Vice

Cheng, Chi-Yi
President
Deputy Senior Vice

Huang, Teng-Wei
President
Deputy Senior Vice

Jeng, Jen-Cherng
President
Deputy Senior Vice

Huang, Yi-En
President
Deputy Senior Vice

Li, Hua-Lung
President
0 185 0 0.06
Deputy Senior Vice
Hwang, Yi-Syou
President
Deputy Senior Vice

Chang, Chih-Chao
President
Deputy Senior Vice

Chen, Jenn-Hwang
President
Deputy Senior Vice

Yeh, Ching-Rong
President
Deputy Senior Vice

Con, Kuo-Chung
President
Deputy Senior Vice

Hwang, Ming-Ling
President
Deputy Junior Vice

President Chang, Chuan-Fu
(Accounting Officer)
Note 1: The title as of December 31, 2018

Note 2: The amount of compensation for the employees of the 2018 manager that was distributed by the
Board of Directors in the year of 2019.
58
2018 Annual Report
Note 3: After-tax net profit refers to the net income of the 2018 parent company only financial report.
Note 4: The scope of application of the manager is based on the letter from the Financial Supervisory
Commission R.O.C. (Taiwan) on March 27, 2003, Tai-Cai-Zheng-San Zi, No. 0920001301, the
scope of which is as follows:
(1) President or equal position
(2) Executive Vice President or equal position
(3) Senior Vice President and Deputy Senior Vice President or equal position
(4) Financial Officer
(5) Accounting Officer
(6) Other persons who have the right to manage affairs and sign on behalf of the company
4. Comparison of Remuneration for Directors, Supervisors, President and Vice

Presidents in the Most Recent Two Fiscal Years and Remuneration Policy for
Directors, Supervisors, President and Vice Presidents
(1) The ratio of total remuneration paid by the Company and by all companies included in the
consolidated financial statements for the two most recent fiscal years to directors, supervisors,
president and vice presidents of the Company, to the net income.
Consolidated Subsidiaries
EMC
of EMC
Tital
2017 2018 2017 2018
Directors 0.27% 3.15% 0.27% 3.15%
Supervisors 0.02% - 0.02% -
President and Vice

0.76% 13.47% 0.76% 13.47%
Presidents
(2) The policies, standards, and portfolios for the payment of remuneration, the procedures for
determining remuneration, and the correlation with risks and business performance.
According to the Company's Articles of Incorporation, if the Company makes profit in a fiscal
yesr, directors' remuneration shall be nomore than 2% of the profit. The remuneration of
directors is stipulated according to the Company’s Articles of Incorporation, authorizing the
Board of Directors to determine the remuneration by its participation and contribution, as well
as that of other company’s data. The remuneration of managers is determined in accordance
with the Payment Regulations for Managers Compensation. The remuneration for directors and
managers is stipulated by the Remuneration Committee and should be approved by the Board of
Directors. The bonus would be considered and distributed based on the operation results of the
Company and the personal performance.
59
III. Implementation of Corporate Governance

1. Board of Directors
A total of 7 (A) meetings of the Board of Directors were held in the year 2018.
The attendance of directors is as follows:
Attendance Attendance
By
Title Name in Person Rate (%) Remarks
Proxy
(B) [B/A] (Note 2)
Chang, Cheng-Yung
Chairman (Representative of 7 0 100% -
Evergreen Steel Corp.)
Chang, Kuo-Hua
(Representative of Chang
Director 7 0 100% -
Yung-Fa Charity
Foundation)
Chang, Kuo-Ming
(Representative of Chang
Director 5 0 71.43% -
Yung-Fa Charity
Foundation)
Ko, Lee-Ching
Director (Representative of Ever- 7 0 100% -
green International S.A.)
Lee, Mong-Jye
Director (Representative of Ever- 6 1 85.71% -
green International S.A.)
Hsieh, Huey-Chuan
Director (Representative of 7 0 100% -
Evergreen Steel Corp.)
Independent
Yu, Fang-Lai 7 0 100% -
Director
Independent
Chang, Chia-Chee 7 0 100% -
Director
Independent
Li, Chang-Chou 7 0 100% -
Director
Other mentionable items:

1. Please specify the dates of the Board Meetings, period, agenda and all independent
directors’ opinions and the Company’s responses if one of following situation has occurred
in the Board Meetings:
(1) The items listed in Article 14-3 of Securities and Exchange Act: Not applicable as the
60
2018 Annual Report
Company has established the audit committee.

(2) Except for the proposal mentioned above, other literally recorded resolutions which are
opposed or have qualified opinion by independent directors: None.
2. If the directors have personal interest conflicts to the proposal and are required for recusal,
please specify the names of the directors, proposal, reason and the resolution: Please refer
to page 106 to 111.
3. The evaluation to strengthen the functionality of Board of Directors in recent years(ex.
resolution Audit Committee or enhance information transparency):
(1) The Company has purchased liability insurance for directors in order to disperse the risk
of legal responsibility and improve the ability of corporate governance.
(2) The Company has 3 independent directors and has stipulated the “Rules Governing the
duties of independent directors”. To enhance the functionality of Board of Directors, the
Company established the Audit Committee on Jun.22, 2017.
(3) To enhance the information transparency, the Company voluntarily publishes important
resolution of Board Meetings and establishes Corporate Social Responsibility page,
Corporate Governance page, and Ethical Management page on the Company’s website.
(4) To enhance the professional ability of directors as well as implement corporate
governance, the Company has invited lecturers for directors to attend training courses in
2018 and 2019.
(5) The Company was ranked in the top 5% of all selected listed companies of the 5th, which
illustrated the Company had well performance during operation.
(6) The Board of Directors of the Company established “Regulations Governing the Board
Performance Evaluation”, the 2018 evaluation results of the performance of Directors
were “Good”.
2. Audit Committee
(1) Audit Committee
A total of 7 (A) meetings of the Audit Committee were held in 2018 and the attendance of
Independent directors is as follows:
Attendance Attendance
By
Title Name in Person Rate (%) Remarks
Proxy
(B) [B/A]
Independent
Director
Independent
Yu, Fang-Lai 7 0 100% -
director
Independent
Chang, Chia-Chee 6 1 85.71% -
Director
61

1. If any of the following circumstances occur, the dates of meetings, sessions, contents of
motion, resolutions of the Audit Committee and the Company’s response to the Audit
Committee’s opinion should be specified:
(1) The items listed in Article 14-5 of Securities and Exchange Act: Please refer to page
106 to 111.
(2) Except for the proposal mentioned above, other resolutions which are not approved
by Audit Committee but are approved by two-third of directors: None.
2. If there are independent directors’ avoidance of motions in conflict of interest, the
directors’ names, contents of motion, causes for avoidance and voting should be
specified: Please refer to page 106 to 111.
3. Communications between the independent directors, the Company’s Chief Internal
Auditor and CPAs (e.g. the items, methods and results of audits of corporate finance or
operations, etc.)
(1) The Communications between the independent directors and the Company's chief
internal auditor.
A. Communication method
The independent directors and the chief internal auditor have at least two closed-
door meetings every year, to report the results of execution of internal audit
and operation of internal control. In the case of emergency, the meeting may be
convened at any time.
B. The summaries of communication in 2018:
The Company’s
Date Communication Content
response
1. Internal audit findings from Nov 2017 to Jan 2018.

No pending
03.23.2018 2. Oversea subsidiaries auditing
issues
3. 2017 Internal control statement
1. Internal audit findings from Feb 2018 to Mar 2018. No pending

05.14.2018
2. Cargo claim procedure. issues
1. Internal audit findings from Apr 2018 to Jun 2018.

No pending
08.13.2018 2. Loaning of Funds and Making of Endorsements/
issues
Guarantees auditing procedure
No pending
10.08.2018 Internal audit findings from Jul 2018 to Aug 2018.
issues
No pending
11.13.2018 Internal audit findings in Sep 2018.
issues
1. Internal audit findings in Oct 2018. No pending

12.21.2018
2. 2019 internal auditing plan. issues
62
2018 Annual Report
(2) The Communications between the independent directors and CPAs.

A. Communication method
The independent directors and CPAs have at least two closed-door meetings every
year, to report the financial situation and the audit results of the Company and
its subsidiaries, and to explain the materially adjusting journal entries and the
influence of legislation amendment on accounts. In the case of emergency, the
meeting may be convened at any time.
B. The summaries of communication in 2018:
The Company’s
Date Communication Content
response
1. CPAs Report : 2017 Q4 Financial Statement Report

review scope and results.
03.23.2018 None
2. CPAs discussed and communicated the problems
raised by the independent directors.

05.14.2018 None

08.13.2018 None

11.13.2018 None
4. Proposal plan for the Audit Committee in 2019:
Month Planning Proposal
1. To approve 2018 Business Report.

2. To approve 2018 parent-company-only Financial Report and consoli-
dated Financial Report.
March 3. To approve 2018 earnings distribution.
4. To appoint the Company’s certified public accountants and determine
their remuneration.
5. To approve the 2018 Declaration of Internal Control.
May To report 2019 Q1 Consolidated Financial Statement.
August To report 2019 Q2 Consolidated Financial Statement.
November To report 2019 Q3 Consolidated Financial Statement.
1. To formulate 2020 Internal Audit Plan.

December
2. To approve 2020 budget.
63
3. Corporate Governance Implementation Status and Deviations from “the

Corporate Governance Best-Practice Principles for TWSE/TPEx Listed
Companies”
Implementation Status Deviations from “the
Corporate Gover-
nance Best-Practice
Evaluation Item
Yes No Abstract Illustration Principles for TWSE/
TPEx Listed Compa-
nies” and Reasons
1. Does the company establish and 3 The Board of Directors has approved None
disclose the Corporate Governance the “Corporate Governance Best-
Best-Practice Principles based Practice Principles”, which can be
on “Corporate Governance Best- found on both the Company’s website
Practice Principles for TWSE/TPEx and Market Observation Post System
Listed Companies”? (MOPS).
2. Shareholding structure & share-

holders’ rights
(1) Does the company establish 3 Stock Department is in charge of han- None
an internal operating procedure dling the issue following the internal
to deal with shareholders’ sug- control operation procedures.
gestions, doubts, disputes and
litigations, and implement based
on the procedure?
(2) Does the company possess the 3 Responsibility assigned to the relevant None
list of its major shareholders as departments.
well as the ultimate owners of
those shares?
(3) Does the company establish 3 The Company has established risk None
and execute the risk manage- control measures within the internal
ment and firewall system within control operation procedures.
its conglomerate structure?
(4) Does the company establish 3 The Board of Directors has estab- None
internal rules against insiders lished the “Procedures for Handling
trading with undisclosed infor- Material Inside Information” and
mation? “Insider Trading Prevention Man-
agement” within the internal control
operation procedures to prevent the
trading of stocks by insiders.
64
2018 Annual Report

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
3. Composition and Responsibilities

of the Board of Directors
(1) Does the Board develop and 3 1. According to the Company’s “Cor- None
implement a diversified policy porate Governance Best-Practice
for the composition of its mem- Principles” paragraph 3 of Article
bers? 20, the composition of the Board
of Directors should considered its
diversification. Paragraph 4 of Ar-
ticle 20, the members of the Board
of Directors should have profes-
sional knowledge, skill and ability.
2. Gender equality in the board mem-
bers’ composition is also deeply
concerned by the Company, and
the goal of female rate in board
members is at least 10%. The cur-
rent board of directors consists of
8 directors and 1 of whom is a fe-
male, which accounts for 12.5% of
the board.
3. Please refer to Note 1(page 73) for
the information of diversification of
the Company’s Board of Directors.
(2) Does the company voluntarily 3 The Company doesn’t voluntarily es- T h e C o m p a n y h a s
establish other functional com- tablish other functional committees. established Remu-
mittees in addition to the Re- neration Committee
muneration Committee and the and Audit Committee.
Audit Committee? Board of Directors exe-
cutes authority accord-
ing to laws, Articles of
Incorporation, resolu-
tions of Sharehold-
ers’ Meeting and the
principle of corporate
governance.
(3) Does the company establish a 3 1. The Company established the None
standard to measure the perfor- “Regulations Governing the Board
mance of the Board, and imple- Performance Evaluation”, and dis-
ment it annually? closed it through the Company’s
65

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
official website and the Market Ob-

servation Post System (MOPS).
2. The Company shall conduct an
internal board performance evalu-
ation at least once a year. In ad-
d i t i o n , t h e C o m p a n y ’s b o a rd
performance evaluation may be
conducted by an external inde-
pendent professional institution
or a panel of external experts and
scholars at least once every three
years.
3. The 2018 evaluation results of the
performance of the Board of Direc-
tors is as follow:
The Board
The Board members
evaluation (self)
evaluation
Average score
2.84 2.81
(Full score: 3)
Evaluation
Good Good
Results
The details please refer to the Com-
pany’s official website.
(4) Does the company regularly 3 The Company annually evaluates None
evaluate the independence of the specialization and independence
CPAs? of CPAs. Also, the CPAs have com-
pleted independent reports for the
appointed auditing affair. The assign-
ment and remuneration of CPAs for
the 2019 financial and tax certification
has been approved by the Board of
Directors on Mar 22, 2019.
The assigned accountants are not
directors, supervisors, executive of-
ficers, employees or shareholders of
the Company or its affiliated com-
panies and have been confirmed as
66
2018 Annual Report

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
non-stakeholders, which meets with

the government regulations for inde-
pendent judgment. Please refer to
Table 2 for the CPAs independence
evaluation (Page 73-74).
4. Does the TWSE/TPEx Listed Com- 3 1. The Stocks Department officer, None
panies establish sections to mainly who has been conducted stock
or concurrently deal with corporate affairs, shareholders’ meeting and
governance business (including but Board meeting affairs for at least 3
not limited to provide directors and years, is responsible for corporate
supervisors necessary informa- governance affairs, and is super-
tion, hold Board Meeting or Annual vised by the top management of
General Meeting, company regis- Finance Division. The main duties
tration and change registration of are as follows:
company and Minutes of Board of (1) To provide information and reg-
Directors meeting and Annual Gen- ulations for Directors to assist
eral Meeting preparation) ? Directors to perform their duty.
(2) To set up the meeting agenda
and minutes of Shareholders’
meeting, Board meeting and
functional committees’ meeting,
prepare meeting affairs and file
the company registrations appli-
cation with MOEA according to
laws.
(3) To hold Directors training course
according to industrial charac-
teristics and Directors’ needs.
2. The business development in 2018
are as follows:
(1) The renewal of directors’ & of-
ficers’ liability insurance of 2019
was reported to the Board on
Dec. 21, 2018.
(2) The 2018 evaluation results of
the performance of the Board of
Directors were reported to the
Board on Mar. 22, 2019.
67

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
(3) The Directors training courses

were held on Feb. 07, 2018 and
Oct. 24, 2018.
5. Does the company establish a 3 “Stakeholder Zone” is set up in the None

communication channel and build website of the Company, which is di-
a designated section on its website vided into investor service, customer
for stakeholders (including but not service, employee area, complaint
limited to shareholders, employees, mailbox and supplier area. Each area
customers, and suppliers), as well provides the information for contact
as handle all the issues they care person and phone number as com-
for in terms of corporate social re- munication channels with stake-
sponsibilities? holders. The issues concerned by
stakeholders, relevant information
and responses to these issues are
disclosed in the Corporate Social Re-
sponsibility Report in the Corporate
Social Responsibility Zone.
Based on operation situation and pre-
vious experience for editing Corpo-
rate Social Responsibility Report, the
topics that stakeholders concern are
issued and identified by 22 depart-
ments of Evergreen Marine Corpora-
tion. Please refer to Table 3 (Page
75~76).
The Company adopts open and rig-
orous attitude on Corporate Social
Responsibility. The corresponding
department will response with com-
prehension and substance. The pro-
cess is composed of identification of
Corporate Social Responsibility, com-
munication management, materiality
analysis about the topics, and proper
response to maintain a rapport.
68
2018 Annual Report

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
6. Does the company appoint a pro- 3 The Company does not assign any Whereas the Stock De-
fessional shareholder service agen- agency to be in charge of its share- partment is managed by
cy to deal with shareholder affairs? holder affairs. the Company itself, the
Shareholders’ Meeting
is conducted following
government regulations
and corporate guide-
lines to ensure its lawful-
ness, effectiveness, and
safeness.
7. Information Disclosure
(1) Does the company have a cor- 3 1. Financial and Business information: None
porate website to disclose both The Company has set up a corporate
financial standings and the sta- website (URL: http://www.ever-
tus of corporate governance? green-marine.com/) and designat-
ed appropriate people to monitor
and keep it up-to-date with current
information.
2. Corporate governance status: The
Company has disclosed the struc-
ture of the corporate governance,
implementation of functional com-
mittees, “Articles of Incorporation”,
Internal audit organization and
implementation situation, corpo-
rate governance operation situ-
ation, situation of fulfilling social
responsibility, labor relations and
major shareholder list, and assist-
ing stakeholders to understand the
operation of corporate governance.
( U R L : h t t p : / / w w w. e v e r g re e n -
marine.com/tbi1/jsp/TBI1_Gover-
nance.jsp)
69

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
(2) Does the company have other 3 The Company has established an None
information disclosure channels English website (URL: http://www.
(e.g. building an English web- evergreen-marine.com/) and spokes-
site, appointing designated peo- person system for gathering and
ple to handle information collec- disclosing information about investor
tion and disclosure, creating a conference information that the Com-
spokesman system, webcasting pany held or has been invited to over
investor conferences)? the years, which is disclosed on the
Company’s website.
8. Is there any other important infor-

mation to facilitate a better under-
standing of the company’s corpo-
rate governance practices?
(1) Employee rights and employee 3 1. Employee rights None
wellness (1) In 2002, the company formu-
lated measures for the preven-
tion and treatment of sexual
harassment in the workplace,
complaints and disciplinary
measures, and set up a mailing
box and a dedicated line on the
internal website to properly pro-
tect the rights and interests of
employees.
(2) Follow the provisions of the
Gender Work Equality Act, treat
all employees equally, and ar-
range appropriate positions
based on individual expertise
and performance.
(3) The company employs female
crew members in an innovative
employment concept to provide
an excellent working environ-
ment. Colleagues can learn
from each other, respect each
other and face work challenges
together.
70
2018 Annual Report

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
(4) Through comprehensive educa-

tion system planning and one-
on-one teacher-apprentice
training methods to ensure the
normal operation of various
businesses, regular performance
appraisals, review of employee
work performance results, as a
reference for their future career
development. Supervisors can
also enhance two-way commu-
nication and coaching through
work interviews, strengthen
employee performance, and
plan the development of their
careers.
2. Employee care
(1) The company has a staff restau-
rant to provide free lunch to take
care of employees’ health and
food hygiene.
(2) In Taipei, Nanxun and Kaoh-
siung, there are 24 clubs in
three categories: “ball sports,
health and wellness, outdoor
recreation”, which encourage
employees to relieve work pres-
sure, connect with feelings and
promote physical and mental
health.
(3) Regularly organize group activi-
ties, such as employee travel,
basketball games, etc., to en-
hance employee communication
and peer friendship.
71

Corporate Gover-
nance Best-Practice
Evaluation Item
TPEx Listed Compa-
nies” and Reasons
(2) Investor relations 3 The Company provides a stakehold- None

ers section on the website (URL:
http://www.evergreen-marine.com/
tw/tbf1/jsp/TBF1_FinancialReports.
jsp) for Providing investors with infor-
mation on operations and finances.
(3) Supplier relations and rights of 3 Please refer to Corporate Social Re- None
stakeholders sponsibility in chapter 3.
(4) Directors’ training records 3 The directors of the Company have None
completed training courses in 2018
according to “Directions for the Imple-
mentation of Continuing Education for
Directors and Supervisors of TWSE
Listed and TPEx Listed Companies”.
Please refer to the MOPS for com-
plete information of the continuing
training of the Company’s directors.
(5) The implementation of risk man- 3 Please refer to analysis risk of man- None
agement policies and risk evalu- agement in chapter 7.
ation measures
(6) Purchasing insurance for direc- 3 The Company has purchased liability None
tors and supervisors insurance for its directors since 2015.
9. Please explain the improvements which have been made in accordance with the results of the Corporate Gover-
nance Evaluation System released by the Corporate Governance Center, Taiwan Stock Exchange, and provide the
priority enhancement measures.
The directors of the Company have completed training courses in 2018 according to “Directions for the Imple-
mentation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies”
and the Company will continually encourage directors to attend training courses.
72
2018 Annual Report
Table 1 Diversification of Board of Directors
Government
Sea Finance
Title Name Gender Management Law Technology &
Transport Accounting
Supervision
Chang, Cheng-
Chairman Male 3 3
Yung
Chang, Kuo-
Director Male 3 3
Hua
Chang, Kuo-
Director Male 3 3
Ming
Director Ko, Lee-Ching Female 3 3
Hsieh, Huey-
Director Male 3 3
Chuan
Independent
Yu, Fang-Lai Male 3 3 3
Director

Male 3 3
Director Chee
Independent Li, Chang-

Male 3 3
Director Chou
Table 2 Independence of CPA
Independence
Item Evaluation
of CPA
1. CPAs and their families did not provide or receive gifts or spe-
cial offers to top management, directors and supervisors of the
Conformity Yes
Company or its related companies, and did not affect or threat-
en the independence of the CPAs.
2. CPAs and their families or the management of the firm with su-
pervisory duties did not have the following circumstances during
the auditing period:
- Serve as a manager, supervisor, or director of the Company
Conformity Yes
or its subsidiaries.
- Positioned as one who has a direct and significant influence
on the company’s accounting records or financial statements.
3. CPAs and their families have not received any awards for non-
Conformity Yes
audit services from the Company or its subsidiaries.
73
Independence
Item Evaluation
of CPA
4. One who resigned from CPAs or the auditing team did not have
the following circumstances:
- Acting as a director or supervisor of the Company or affiliated
companies (including non-executive directors and supervi-
Conformity Yes
sors), top management, or one who may have a significant
impact on the company’s accounting records or the financial
statements audited by the firm.
- Being promoted to the above positions.
5. During the auditing period, the members of the auditing team

Conformity Yes
did not be employed by the company.
6. CPAs appointed by the company have followed the rotation

policy to reduce the threat posed by long-term appointments to Conformity Yes
independence and impartiality.
7. There are no direct or material indirect financial interests, finan-

cial agreements, bank deposits, securities accounts or insur-
ance plans that violate the independence norms between the Conformity Yes
CPAs and their family members and the Company or its subsid-
iaries.
8. There is no commercial cooperation or other commercial rela-

Conformity Yes
tionship between the CPAs and their family and the Company.
9. There is no pending or foreseeable lawsuit involving the audit

or non-audit services between the CPAs and the subsidiaries
Conformity Yes
to the firm, and no lawsuit which is significant to the firm or the
Company.
10. The Company or its subsidiaries do not owed CPA professional

Conformity Yes
fee but having been served.
11. The amount of the professional fee of the company and its
subsidiaries would not have an influence on the independence Conformity Yes
of CPAs.
12. The CPAs and the Cpmmany do not reach an agreement

about receiving or paying commission, referral feels or contin- Conformity Yes
gent fees.
74
2018 Annual Report
Table 3 Issues concerned by stakehilders
Communication channels,
Importance to the
Item stakeholder Issue response methods and
company
Communication frequency
1 Supplier Supplier management Ensure that the prod- Contact person: Maritech Dept.
Sustainable strategy ucts and services Mr. Luo
and practice provided meeting the E-mail: marpolservice@evergreen-
Risk control Company’s require- marine.com
Information disclosure ments For other contact persons, please
Operational perfor- refer to our website, Stakeholder
mance area.
URL: https://www.evergreen-
marine.com/tw/tbi1/jsp/TBI1_
Stakeholder.jsp
meeting (1-2 times a year)
Supplier evaluation (every year)
Equipment efficiency statistics
(every month)
2 Client Product risk Revenue source of Contact person: Auditing Dept.

Service quality and the Company Mr. Chen
customer satisfaction E-mail: aud@evergreen-marine.
Customer privacy pro- com
tection Visit (irregularity)
Shipping management Company website (at all times)
Sustainable strategy customer satisfaction survey (1-2
and practice times a year)
3 Employee Sustainable strategy Members and assets Contact person: Human Re-
and practice of the Company sources Dept. Ms. Chen
Salary, benefits and E-mail: hrd@evergreen-marine.
employee care com
Regulation Compliance Electronic bulletin board (irregu-
Operational perfor- larity)
mance Senior director of business meet-
Corporate governance ing instructions (every month)
and integrity manage- Regular (every month) and irregu-
ment lar meetings
Company NOTES operating sys-
tem (at all times)
75
Communication channels,
Importance to the
Item stakeholder Issue response methods and
company
Communication frequency
4 Shareholder/ Sustainable strategy Funder of the Contact person: Stock Dept.

Investor and practice Company Miss Yang
Shipping management TEL: 886-2-2500-1668
Information disclosure Company website investor ser-
Operational perfor- vice area (at all times)
mance Announces important financial or
Risk control business information on MOPS
(Compliance with the regulations
of the competent authority)
Investor consultation reply (irregu-
larity)
Annual report of shareholders’
meeting (every year)
4. Composition, Responsibilities and Operations of the Remuneration Committee

A. Professional Qualifications and Independence Analysis of Remuneration Committee
Members
Criteria Meets One of the Following Professional

Qualification Requirements, Together with at Least Independence Criteria (Note)
Five Years’ Work Experience
An instructor or A judge, public Has work

higher position prosecutor, attor- experience in Number of
in a department ney, Certified Pub- the areas of Other Public
of commerce, lic Accountant, commerce, Companies
law, finance, or other profes- law, finance, in Which the
accounting, or sional or technical or accounting, Individual is

Title
other academic specialist who has or otherwise Concurrently
department passed a national necessary for Serving as an

1 2 3 4 5 6 7 8
related to the examination and the business Remunera-
business needs been awarded a of the Com- tion Commit-
of the Company certificate in a pany tee Member
in a public or profession nec-

private junior essary for the
college, college business of the
Name or university Company
Independent
Yu, Fang-Lai 3 3 3 3 3 3 3 3 3 0
Director

3 3 3 3 3 3 3 3 3 3 0
Director Chee
Independent Li, Chang-

3 3 3 3 3 3 3 3 3 3 3
Director Chou
76
2018 Annual Report
Note: Please tick the corresponding boxes that apply to a member during the two years prior
to being elected or during the term(s) of office.
1. Not an employee of the Company or any of its affiliates.
2. Not a director or supervisor of affiliated companies. Not applicable in cases where
the person is an independent director of the parent company, or any subsidiary as
appointed in accordance with the Act or with the laws of the country of the parent
or subsidiary.
3. Not a natural-person shareholder who holds shares, together with those held by the
person’s spouse, minor children, or held by the person under others’ names, in an
aggregate amount of 1% or more of the total number of outstanding shares of the
Company, or ranking in the top 10 in holdings.
4. Not a spouse, relative within the second degree of kinship, or lineal relative within
the third degree of kinship, of any of the persons in the preceding three sub-
paragraphs.
5. Not a director, supervisor, or employee of a corporate shareholder who directly
holds 5% or more of the total number of outstanding shares of the Company, or
who holds shares ranking in the top five holdings.
6. Not a director, supervisor, officer, or shareholder holding 5% or more of the shares
of a specified company or institution which has a financial or business relationship
with the Company.
7. Not a professional individual, who is an owner, partner, director, supervisor, or
officer of a sole proprietorship, partnership, company, or institution that provides
commercial, legal, financial, accounting services or consultation to the Company or
to any affiliate of the Company, or a spouse thereof.
8. Not a person of any conditions defined in Article 30 of the Company Law.
B. The duties of the Remuneration Committee are as follows:
1. Establish and periodically review the performance evaluation and remuneration
policy, system, standards, and structure for directors and managers.
2. Periodically evaluate and establish the remuneration of directors and managers.
C. Attendance of Members at Remuneration Committee Meetings
1. The Remuneration Committee is composed of three independent directors.
2. The term of office of current Remuneration Committee is from Jun. 22, 2017 to
Jun. 21, 2020. A total of 3 (A) meetings were held in 2018. Please refer to page 106
to 111 for resolutions made by the Remuneration Committee and the attendance of
Committee members is as follows:
77
Attendance in Attendance
Title Name By Proxy Remarks
Person (B) Rate (%) [B/A]
Convener Yu, Fang-Lai 3 0 100% -
Committee
Chang, Chia-Chee 3 0 100% -
Member
Committee
Member

1. If the Board of Directors decline to adopt or modify a recommendation of the
remuneration committee, it should specify the date of the meeting, session, content
of the motion, resolution by the Board of Directors, and the Company’s response to
the remuneration committee’s opinion (e.g. the remuneration passed by the Board of
Directors exceed the recommendation of the remuneration committee, the circumstances
and cause for the difference shall be specified): None.
2. Resolutions of the remuneration committee objected to by members or subject to a
qualified opinion and recorded or declared in writing, the date of the meeting, session,
content of the motion, all members’ opinions and the response to members’ opinion
should be specified: None.
78
2018 Annual Report
5. Corporate Social Responsibility

Corporate Social
Responsibility Best-
Evaluation Item Practice Principles
Yes No Abstract Illustration for TWSE/TPEx
Listed Companies”
and Reasons
1. Corporate Governance Implemen-

tation
(1) Does the company declare its 3 The Company’s “Evergreen Line So- None
corporate social responsibility cial Responsibility Policy”, “Evergreen
policy and examine the results Line Corporate Social Responsibility
of the implementation? Code” and “Evergreen Line Social
Responsibility Implementation Mea-
sures” were approved by the Board of
Directors and announced. The policy
is also disclosed on the company’s
website (URL: http://stock.evergreen.
com.tw/download/gv1/rule/2603/en-
TW/2603_17.pdf).
In addition, the 2017 Evergreen Ma-
rine Corporate Social Responsibil-
ity Report has been completed and
uploaded to MOPS on December
20, 2018 and published on the com-
pany’s website - “CSR section” (URL:
http://www.evergreen -marine.com/
tbi1/jsp/TBI1_CSRIndex.jsp)
The CSR Committee of the Company
regularly reports on the promotion of
the work of corporate social responsi-
bility yearly to the Board of Directors,
and reviews the implementation re-
sults of various issues.
(2) Does the company provide edu- 3 It’s compulsory that each department None
cational training on corporate of the company has to arrange at
social responsibility on a regular least 0.5 hours of CSR training course
basis? annually.
79

Corporate Social
Listed Companies”
and Reasons
(3) Does the company establish 3 The Evergreen Marine CSR Commit- None
exclusively (or concurrently) tee is the dedicated unit for CSR to
dedicated first-line managers ensure the continued implementation
authorized by the board to be in of sustainable corporate management
charge of proposing the corpo- practices.
rate social responsibility policies The CSR Committee is responsible for
and reporting to the board? the formulation and implementation
of CSR policies and related manage-
ment policies. The President serves
as the Chairperson of the Committee
while the members of the Committee
are made up of the heads of each de-
partment. The relevant departments
in each team are responsible for com-
municating and responding to stake-
holders on the issues concerned.
Members of the Committee meet as
necessary to discuss economic, en-
vironmental, and social issues, and
review related activities. The CSR
Committee reports its progress and
work plans to the Board of Directors
once a year. Please refer to Tablel1 for
the structure of CSR commitee (page
95).
(4) Does the company declare a 3 In order to attract and retain quality None
reasonable salary remuneration talent as well as strengthen our global
policy, and integrate the em- business team, the Company remu-
ployee performance appraisal neration policy adheres to labor laws
system with its corporate social and regulations while providing shore
responsibility policy, as well as and ship personnel with competitive
establish an effective reward salary which do not differ on the basis
and disciplinary system? of gender, religious, race or politi-
cal bias. Annual bonuses are paid to
employees based on the Company’s
profitability and individual performance
for that year as a reward for outstand-
ing performance.
80
2018 Annual Report

Corporate Social
Listed Companies”
and Reasons
Remuneration for national and for-

eign mariners must not only meet the
minimum wage standards set by the
MOTC and the collective bargaining
agreement with the International
Transport Workers’ Federation (ITF).
The Company also seeks to recruit
talented personnel through compen-
sation that are better than domestic
and foreign market rates. No domes-
tic or overseas labor disputes took
place in 2018.
To fulfill our social responsibility on
sustainable corporate development,
the Company not only incorporates
ship environmental performance, en-
ergy-efficiency and fuel-conservation
into department targets and employ-
ee performance, but also links those
to the rewards system. For example,
new ships under construction must
be green and fuel-saving designs.
Once the ship enters operations, an
optimum balance must be achieved
between ship speed and fuel con-
sumption. The ship’s officers, includ-
ing the captain and chief engineer,
must adhere rigorously to environ-
mental regulations during the voyage
and are issued bonuses for fuel sav-
ings in order to improve our fulfillment
of sustainable development goals.
81

Corporate Social
Listed Companies”
and Reasons
2. Sustainable Environment Develop-

ment
(1) Does the company endeavor 3 The Company is cautiously abiding None
to utilize all resources more ef- by international environmental protec-
ficiently and use renewable mation conventions and environmental
terials which have low impact on protection regulations of various re-
the environment? gions, and is committed to pollution
prevention, energy conservation and
greenhouse gas reduction, and pro-
tects our planet. Strict standards and
operating procedures are provided for
all environmental protection and pol-
lution prevention and control matters
for ships sailing at sea. The Company
uses various operational management
measures, emission reduction strate-
gies, optimizing ship design to reduce
ship energy consumption, and con-
tinuously introducing a new genera-
tion of environmentally friendly ships,
reducing pollution and greenhouse
gas emissions, in order to contribute
to the earth’s environmental protec-
tion.
The building of Evergreen Marine ad-
heres to an energy-saving policy, in
order to achieve energy-saving goals
and eliminate energy waste, in ad-
dition to large-scale air-conditioning
mainframes using high-energy-saving
and electric-saving motors, the of-
fice lighting part has been completely
changed into LED lamps for energy-
saving, through active management
to control high energy consumption
and long-time use of equipment. If the
refrigerator is broken, we will replace
it by the energy-saving refrigerator.
When an official vehicle is replaced, a
82
2018 Annual Report

Corporate Social
Listed Companies”
and Reasons
vehicle with less fuel consumption will

be purchased.
Over 50% of the chassis at Kaohsi-
ung terminal have now been upgrad-
ed with all-rubber tires. We expect
all dock-side chassis to be fitted with
rubber tires in the future, a move that
will reduce the complexity of recycling
and associated environmental pollu-
tion.
(2) Does the company establish 3 The company has a risk management None
proper environmental manage- mechanism to provide a safe and
ment systems based on the healthy working environment for all
characteristics of their indus- staff in Evergreen.
tries? Evergreen’s fleet management sys-
tem has been certified by the Ameri-
can Society of Surveyors (ABS) for
comprehensive auditing at the level
of safety and environmental man-
agement, and issued a certificate of
“Certificate of Company Compliance
on Marine Safety & Environmental
Management”. Evergreen meets the
requirements of the three interna-
tional standards of ISM Code, Quality
Management (ISO9001) and Environ-
mental Management (ISO14001) in
onshore logistics management and
maritime operations.
(3) Does the company monitor the 3 The global extreme weather and cli- None
impact of climate change on its mate events are a challenge we must
operations and conduct green- face. For the Evergreen fleet, bad
house gas inspections, as well weather is the most serious climate
as establish company strategies change, posing a huge threat to the
for energy conservation and safety of ships on the sea. Taking
carbon reduction? into account the safety of the fleet,
Evergreen seeks to cooperate with
Japan’s WNI (Weathernews Inc.) for
83

Corporate Social
Listed Companies”
and Reasons
long-term cooperation to provide

worldwide major marine weather
forecasting and consulting services
so that ships sailing around the world
can obtain the weather information
of local waters as soon as possible in
order to take appropriate navigation
plans. Ensure safe navigation.
Evergreen has monitored the fuel
consumption and host operation sta-
tus of each ship of the fleet in time to
ensure the propulsion performance
of the main engine. Each vessel also
feeds back the total fuel consumption
and total navigation distance of the
month to the total at the end of each
month. The company’s ship manage-
ment unit is used to calculate the car-
bon dioxide emissions, so as to moni-
tor the greenhouse gas emissions of
the entire fleet and achieve the fleet’s
carbon reduction targets.
The company currently takes the
following measures to reduce green-
house gas emissions:
1 Slow down the speed of the ship
and sail at a low speed
2. Continuous monitoring of ship fuel
consumption and engine opera-
tions to ensure the main engine is
working efficiently
3. Use the weather navigation to pro-
vide the fleet with real-time weather
information and routes that opti-
mize fuel efficiency
4. Improve cargo handling efficiency
to shorten port stays
5. Planning of ship cargo loads to
maximize economic returns
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6. Application of special anti-fouling

paint to ship hulls
7. Voluntarily participate in environ-
mental and ecological protection
program
The CO2 reduction targets have been
set. A 40% reduction in CO2 emis-
sions by 2020 is planned with 2007
as the baseline. The long-term target
is to reduce the emission rate by 70%
in 2050. And in 2018, the emissions
rate achieved a reduction of 36.2%
compared to 2007.
3. Preserving Public Welfare

(1) Does the company formulate 3 The Company takes its social re- None
appropriate management poli- sponsibility very seriously as a leader
cies and procedures accord- in the global container shipping in-
ing to relevant regulations and dustry. Our CSR policy applies to all
the International Bill of Human branches and agencies around the
Rights? world. We are committed to conform-
ing with policies and regulations on
anti-bribery/anti-corruption, anti-dis-
crimination, environmental protection,
fair risk assessment and control, and
competition compliance (http://www.
evergreen-line.com/tw/static/jsp/csr.
jsp).
Evergreen Marine adheres to the local
labor and gender equality in employ-
ment laws of our global operating
sites. We also support international
guidelines and principles relating to
human rights including the “UN Uni-
versal Declaration of Human Rights,”
the fundamental conventions and
core labor standards of the “Interna-
tional Labor Organization”, prohibit all
forms of discrimination, bullying and
harassment, prohibit the use of forced
85

Corporate Social
Listed Companies”
and Reasons
and child labor, and protect employ-

ees’ work rights.
On Evergreen ships, all crew mem-
bers, whether they are from Taiwan,
China, the Philippines, Vietnam, In-
donesia, Myanmar or Panama, or
whether they believe in Buddhism,
Taoism, Confucianism, Islam, Catholi-
cism or Christianity, embrace the spirit
of fellowship in respecting and tolerat-
ing each other’s religious beliefs and
dietary traditions. Everyone gets along
harmoniously and happily with every-
one while working aboard the ship.
There were no complaints of racial,
religious, or gender discrimination in
the workplace by ship crew members
in 2018.
Employers are banned from employ-
ing children under the age of 15 for
manual labor. The Company adheres
strictly to the relevant labor laws and
regulations. Fleet seamen recruiting
guidelines also conform to the Sea-
farer Act in requiring all applicants to
be over the age of 16 so child labor
has never been used by Evergreen
Marine.
(2) Has the company set up an 3 The Company has established the None
employee hotline or grievance “Employee Complaint Regulations”
mechanism to handle com- as a basis for the employees to seek
plaints with appropriate solu- redress for violations of their rights,
tions? unfair treatment, or illegal behav-
ior by other employees. It regulates
the scope and the procedures to
file a complaint, and the latest date
of a response from the Company.
The measures protect employees’
rights while maintaining harmonious
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Corporate Social
Listed Companies”
and Reasons
labor-management relations. The

identity of the complainant and the
contents of the complaint are kept
confidential. The complainant is pro-
tected from any inappropriate treat-
ment due to the complaint. To protect
employees against sexual harass-
ment and gender discrimination, the
Company introduced the “Regulations
Governing the Prevention, Reporting
and Punishment of Sexual Harass-
ment in the Workplace” to uphold
gender equality in employment and
personal dignity by providing clear av-
enues for complaint and a telephone
hotline. We irregularly promote harmo-
nious gender relations and respect in
the workplace. Disciplinary measures
or other actions will be taken against
the offender based on the severity of
the offense if a complaint of sexual
harassment is found to be true. There
were no complaints of sexual harass-
ment in the workplace in 2018.
(3) Does the company provide a 3 The Company has established an oc- None
healthy and safe working envi- cupational safety and health depart-
ronment and organize training ment according to law and deployed
on health and safety for its em- safety and health management per-
ployees on a regular basis? sonnel to formulate, plan, and pro-
mote occupational safety and health
business, so as to effectively prevent
the occurrence of occupational disas-
ters. The relevant measures are as
follows:
1. Establish safety and health codes
of practice in accordance with the
Occupational Safety and Health
Act. Announce it to employees and
require them to comply.
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Corporate Social
Listed Companies”
and Reasons
2. Conduct safety and health edu-

cation and training for junior and
senior staff in accordance with the
Occupational Safety and Health
Law.
3. Conduct fire safety education and
training for employees in accor-
dance with the provisions of the
Fire Protection Law.
4. Provide regular health checkups
and medical consultations for em-
ployees.
5. Establish a 24-hour security alert to
ensure the company’s property and
personnel safety.
(4) Does the company setup a 3 The Company values mutual com- None
communication channel with munication and ensure smooth labor-
employees on a regular basis, management communications.
as well as reasonably inform Channels such as monthly depart-
employees of any significant mental meetings, e-Bulletin boards,
changes in operations that may employee training, and crew forums
have an impact on them? are used to establish mechanisms for
effective regular or two-way commu-
nications with employees. Top mon-
agement communicate the change of
business environment, performance
and business directions to employees
at all levels through directions issued
at monthly business meetings or ad
hoc morale speeches. Under the
enforcement rules for labor manage-
ment meetings, labor-management
meetings at Evergreen Marine are
convened at least once every three
months. A total of 4 labor-manage-
ment meetings were held in 2018. Key
resolutions include extended work
hours, night-shifts for employees, at-
tendance during natural disasters,
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Corporate Social
Listed Companies”
and Reasons
day-and-night shifts, and the employ-

ee work calendar for 2019. We work
to build smooth communication and
harmonious relations between both
the labor and management through
labor-management meetings, nego-
tiations and conferences.
(5) Does the company provide its 3 The Company has always embraced None
employees with career develop- the philosophy that “talents are the
ment and training sessions? most important assets of an enter-
prise”. We offer equal work opportuni-
ties to young people and patiently
teach them everything from scratch.
Current employees are provided with
a range of solid, professional train-
ing courses and a proactive rotation
scheme. Employees’ professional
abilities and international horizons are
honed through “rotation and expatri-
ate assignment” in order to boost our
operating performance. The training
expenses for both shore and ship
personnel totaled 7 million in 2018.
An innovative “ship-shore rotation”
system at Evergreen also provides
ship personnel with the opportunity
to work on shore. The professional
knowledge of outstanding ship per-
sonnel helps to ensure that the ship
scheduling, freight space configura-
tion, terminal loading/unloading and
ship maintenance operations will also
satisfy the needs of operations at sea.
The overall efficiency of the service
chain can then be improved. Ship
personnel can also take advantage of
the ship-shore rotations and expatri-
ate assignment system to further their
89

Corporate Social
Listed Companies”
and Reasons
developments at sea and on land,

and to look after their families.
(6) Does the company establish 3 The Company establishes a channel None
any consumer protection mech- for customer complaints and reports
anisms and appealing proce- on the stakeholder zone and website,
dures regarding research devel- and the Auditing Department submits
opment, purchasing, producing, it to the relevant units for investigation
operating and service? and feedback to the customer. After the
relevant units finish the case, the result
is reported to the Auditing Depart-
ment. The Auditing Department collects
monthly complaints and results, and
then reports them to Top Management.
Customers can file a complaint at the
following URL:
1. http://www.evergreen-marine.com
2. http://www.evergreen-line.com
3. http://www.shipmentlink.com
(7) Does the company advertise 3 The company has established the “Ev- None
and label its goods and services ergreen Line Corporate Social Respon-
according to relevant regulations sibility Policy” and related operating
and international standards? procedures. The global subsidiaries and
agents should abide by the commit-
ments of anti-bribery, anti-corruption
and anti-discrimination in their business
activities. And strive to avoid pollution
and improve marine environment. The
company has a competition law com-
pliance manual that complies with the
requirements of the competition law,
and is committed to complying with
global competition laws and will never
breach competition laws.
(8) Does the company evaluate the 3 The company has “Supplier Evaluation None
records of suppliers’ impact on Procedures” to evaluate at least once a
the environment and society be- year for qualified suppliers who provide
fore taking on business partner- goods and services that will affect our
ships? service quality. In addition, in order to
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Corporate Social
Listed Companies”
and Reasons
fulfill social responsibilities with suppli-

ers, the company conducted surveys
and evaluations in 2018 on suppliers’
environmental issues, labor practices,
human rights, fair trade practices, and
sustainable procurement. The survey
results also serve as a reference for the
company’s choice of suppliers.
Before doing business with suppliers,
the company will also assess whether
the supplier has any record which
affects the environment and society,
avoid trading with them, and strive to
comply with environmental protection,
safety, and health issues with suppliers.
(9) Do the contracts between the 3 In addition to quality of the products None
company and its major suppli- delivered, the company’s choice of
ers include termination clauses suppliers includes a safe working envi-
which come into force once the ronment, ethics, and honest manage-
suppliers breach the corporate ment, etc. When signing a contract with
social responsibility policy and a major supplier, it is also required to
cause appreciable impact on put in clauses regarding the corporate
the environment and society? social responsibility policy that should
be abided by both parties, and if the
supplier violates the same and has a
significant impact on the environment,
safety and health of the community,
the contract may be terminated at any
time.
4. Enhancing Information Disclosure

(1) Does the company disclose 3 Our stakeholders can inquire the infor- None
relevant and reliable information mation about the company’s corporate
regarding its corporate social social responsibility reports on below
responsibility on its website and websites:
the Market Observation Post 1. Corporate Social Responsibility
System (MOPS)? Zone (website: http://www.ever-
green-marine.com/tbi1/jsp/TBI1_
CSRIndex.jsp)
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Corporate Social
Listed Companies”
and Reasons
2. ”Stakeholder Zone” (website: http:/

/www.evergreen-marine.com/tw/
tbi1/jsp/TBI1_Stakeholder.jsp)
3. MOPS
5. If the Company has established the corporate social responsibility principles based on “the Corporate Social
Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies”, please describe any discrepancy be-
tween the Principles and their implementation:
The Company has formulated the “Evergreen Line Corporate Social Responsibility Code” and the “ Evergreen Line
Corporate Social Responsibility Implementation Measures” and operates according to all of them.
6. Other important information to facilitate better understanding of the company’s corporate social responsibility
practices:
(1) Environmental Protection
The company implements the environmental protection concept in its fleet planning, adopts the most advanced
shipbuilding technology and equipment, and builds an environmental protection fleet to contribute to the sus-
tainable development of transportation services and the marine environment that international trade relies on.
In August 2015, the Company ordered ten new 2,800 TEU “B” container vessels from CSBC Taiwan. The ten
Gen 3 B-type ships under construction with CSBC Taiwan are equipped with the latest sword bow developed
by the shipyard. The bow can handle different drafts and speeds while effectively reducing wave resistance and
drag when the ship is in motion to optimize ship speed and engine performance. Fuel efficiency is improved by
10% compared to the conventional bulbous bow. The main engine uses an electronic control engine that com-
plies with the International Maritime Organization (IMO) Level 2 NOx emission standards, which reduces NOx
emissions by 20%. The ship is designed to meet the 2015 Energy Efficiency Design Index (EEDI) standards.
In the management of ships, the waste, sewage, and exhaust emissions generated by ships are minimized
through advanced soft and hard facilities. Standard operating procedures are adopted to monitor the emissions
of sulfides and nitrides, and proper management of ballast water, sewage, and garbage to prevent oil pollution
and refrigerant leakage.
In addition to the above-mentioned control measures, the latest ship weather navigation system is also adopt-
ed to provide the safest and most fuel-efficient route to the individual general reference. The energy saving and
carbon reduction can be achieved with a minimum of fuel consumption.
Each ship is equipped with a ship’s load stability calculation system approved by the Classification Society to
quickly calculate the optimum trim, draft, weight and hull stress distribution under any load conditions. To en-
sure optimal driving efficiency in a safe and secure situation.
Evergreen Line voluntarily participates in the Vessel Speed Reduction Program, lead by NOAA’s Channel Is-
lands National Marine Sanctuary. The practical action to avoid whale collisions and reduce greenhouse gas
emissions of vessels has been honored with an environmental protection award.
The “Environmental Guardians” page on our website was constantly maintained so as to proactively share our
environmental protection measures and the related information of environmental protection.
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and Reasons
] Historical environmental data

n CO2 n NOx n SOx
CO2 Annual Emission NOX Annual Emission SOX Annual Emission
2.200
3.047 1.975
3.200
110 103.790 2.000 1.867
97.421 2.800 2.531
1.800 1.687
95 90.140
g/Teu-Km
g/Teu-Km
2.400
g/Teu-Km
83.540 82.180 1.600 1.485

79.852 1.430
2.000 1.314
80 72.362
1.614 1.556 1.565 1.537 1.400 1.262
64.400 64.034 1.600 1.289 1.223 1.222 1.216 1.252 1.226 1.087
1.200
61.996 63.023 62.137 0.995 0.981
65 1.200 0.956 0.947
1.000
0.800 0.800
50 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Year Year Year
Note: The greenhouse gas emission information of the Company in 2017 and 2018 is verified by
Class NK.
(2) Contributions to Society
A. Evergreen Marine and Evergreen Maritime Museum Encourages Young Artists through the Children’s Ocean
Painting Contest
The Sixth Taiwanese Elementary School Children’s Ocean Painting Contest, held by Evergreen Maritime Mu-
seum and Evergreen Marine, took place on June 24, 2018. Evergreen Marine invited veteran captain Huang,
dressed in uniform, to be the award presenter. Many Evergreen Marine staff members led children in a sing-
along session. This year’s selection included 42 works, including 15 in the “Angels” category. This category
was created for physically and mentally impaired children who would find it difficult to create paintings at the
museum. Their entries were based on recommendation by school teachers.
B. Evergreen Marine Holds Coastal Cleanup at Zhongyun Beach in Kaohsiung
Evergreen Marine has long been devoted to marine environmental protection. On November 13, 2018, Ever-
green Marine’s Kaohsiung Terminal Division and The ROC Society of the Wilderness collaboratively held the
“2018 Love of Endless Ocean Coastal Cleanup” at Zhongyun Beach in Linyuan District of Kaohsiung city. On
the day of the activity, more than 47.9 kg of waste – including plastic bags, food wrappers, straws, lighters,
and medical waste like needles were collected. Evergreen Marine hopes that through such activities, we can
learn to preserve the earth’s resources through both removing trash from the ocean and finding ways to re-
duce environmental contamination in the first place.
C. New Immigrant Children Visit the Evergreen Maritime Museum
The National Immigration Agency organized the 2018 New Immigrant Children Rising Star Training Camp,
where participants visited businesses and attended careers seminars. On July 17, 2018, nearly 50 college
and senior high school students arrived at the Evergreen Maritime Museum to enjoy a guided tour of the
museum and attend a careers seminar organized by Evergreen Marine. The company’s lecturers presented
an overview of seafarers’ work, ship facilities and the sea-shore rotation system. The speakers answered the
students’ many questions, such as how to qualify for maritime jobs and encourage all participants to have
the courage to pursue their dreams and become seafarers.
D. Chang Yung-Fa Foundation Provides Grants to Students in Mainland China
December is a “month of financial support to students” for the Chang Yung-Fa Foundation, which provides
grants to students from economically underprivileged families to help them finish their studies. Like before,
93

Corporate Social
Listed Companies”
and Reasons
the Foundation invited Evergreen Marine to attend the award ceremony for student grants provided by the
Foundation through the China Institute of Navigation and to give speeches on career development. The
event was held in Nanjing this year and over 250 students attended the seminar.
E. Evergreen Family Day
Evergreen Marine Family Day for employees in Northern Taiwan were held respectively on the 20 and 27 of
October 2018. 777 employees and their families attended the one-day trip and for the first time taking the
Cruise Train to Hualian. Moreover, 301 employees and their family members in Southern Taiwan attended a
one-day tour to Tainan and Chiayi in December.
F. Sponsoring the Evergreen Symphony Orchestra Performance
Evergreen Marine sponsored five “Journey of Classics and Impressionism” concerts at the National Concert
Hall in 2018. 2000 free tickets were given to employees and their families, customers, and several non-profit
organizations. Besides praising arts and culture activities in Taiwan highly, Evergreen Marine continually as-
sists excellent foreign performance groups by transporting stage props and equipment to Taiwan, including
Moscow Classical Ballet: Swan Lake and The Musical: Mozart L’Opéra Rock. In so doing, Taiwanese get the
opportunity to enjoy genuine world-class arts and advance their cultural appreciation without having to travel
abroad. This not only facilitates international and domestic cultural exchanges, but also helps to develop a
global perspective.
G. Marine Officers Cultivation and Academic-Industrial Partnership
(1) Post-Baccalaureate of Shipping Technology Program: There were 31 students enrolled in the Post-
Baccalaureate of Shipping Technology Program under the partnership between Evergreen and National
Kaohsiung University of Science and Technology. 30 of them had passed the 2018 Seafarer Examination
and joined our vessels as deck cadets. They will get the Deck Officer Certificate after 12-month training
on board, and continue serving in Evergreen fleet.
(2) Post-Baccalaureate of Marine Engineering Program: Collaborated with National Taiwan Ocean University,
the 2nd Post-Baccalaureate of Marine Engineering Program with 17 enrollment had started from Sep.
2018.
(3) Maritime university student on board training: Evergreen provided total 139 trainee capacities on board in
2018 for deck and engineering students, including 58 from National Kaohsiung University of Science and
Technology, 28 from Taipei University of Marine Technology and 53 from National Taiwan Ocean University.
(4) Maritime university student in office apprentice during summer vacation: In May of 2018, Evergreen re-
cruited 7 deck and engineering students from 3 Maritime universities to be apprentices in our Maritech
and Maintenance Departments.
(5) Working Practice Tuition and Career Workshop: Worked with National Taiwan Ocean University in 2018
Academic Year, maritime-background lecturers from Evergreen to provide various themed courses to ful-
fill their training needs in “Evergreen Elite Lecture” in order to invite them to join Evergreen.
We also send our experienced Master/Chief Engineer to give lectures on working practice about deck and
engineering department to maritime students in accordance with their requirements. Furthermore, supervi-
sors in office hold Career Workshops periodically to deliver the correct concept about working on board, to
introduce jobs on board, to share lives on board and exotic experience abroad. Hopefully it could encourage
young students to apply for a maritime career.
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7. A clear statement shall be made below if the corporate social responsibility reports were verified by external certifi-
cation institutions:
The company’s 2018 Corporate Social Responsibility Report will be conducted assurance by CPA in accordance
with the ROC Statements of Assurance Engagements Standards No.1 “Assurance Engagements other than Au-
dits or Reviews of Historical Financial Information”.
Table1 The structure of corporate social responsibility committee
Shareholders'
meeting
Board of
Directors
President
(Chairperson)
Members
Employee Care / Environmental Corporate Governance Product/supplier

Community Care protection / Economic Issues management
Issues Group Issue group Group Issue group
General Affairs Dept. General Affairs Dept. Project Dept. Project Dept.
Seaman Dept. Maintenance Dept. Human Resources Dept. Marketing Div.
Human Resources Shipbuilding Dept. Finance Div. Logistics Div.
Dept. Maritech Dept. Auditing Dept. Shipbuilding Dept.
Operation Dept. Maintenance Dept.
Operation Coordination Supply Dept.
Dept. Operation Coordination Dept.
Kaohsiung Terminal Div. Operation Dept.
General Affairs Dept.
Kaohsiung Terminal Div.
Customer Service Dept.
95
6. Ethical Corporate Management

Ethical Corporate
Management Best-
Listed Companies”
and Reasons
1. Establishment of ethical corporate

management policies and programs
(1) Does the company declare its 3 The Company’s Ethical Corporate None
ethical corporate management Management Best-Practice Princi-
policies and procedures in its ples, established in 2014, is a guide-
guidelines and external docu- line to provide high ethical standards
ments, as well as the commit- for all employees. The principles are
ment from its board to imple- disclosed on the Company website
ment the policies? and e-bulletin board. The Board of
Directors and the management place
the greatest importance in adopting
the highest standards of integrity and
ethics in corporate management and
employee work conduct.
(2) Does the company establish 3 The Company’s Procedures for Ethi- None
policies to prevent unethical cal Management and Guidelines for
conduct with clear statements Conduct have established preventive
regarding relevant procedures, measures against unethical conduct,
guidelines of conduct, punish- offering and accepting bribes and
ment for violation, rules of ap- improper benefits, or being present
peal, and the commitment to in the meeting involving any potential
implement the policies? conflict of interest. The aforemen-
tioned principles and regulations also
cover systems for rewards, penalties,
complaints, and related disciplin-
ary measures. Human Resources
Department (HRD) is responsible for
establishing and supervising the im-
plementation of the ethical corporate
management policies and prevention
programs to achieve sound ethical
corporate management.
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Management Best-
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and Reasons
(3) Does the company establish 3 The Company has incorporated pro- None
appropriate precautions against cedures for ethical management and
high-potential unethical con- guidelines for conduct in “Ethical Cor-
ducts or listed activities stated porate Management Best-Practice
in Article 2, Paragraph 7 of the Principles” to prevent unethical be-
Ethical Corporate Management havior in higher risk operating activi-
Best-Practice Principles for ties stipulated by “Ethical Corporate
TWSE/TPEx Listed Companies? Management Best-Practice Principles
for TWSE/TPEx Listed Companies”
Article 7 Paragraph 2.
2. Fulfill operations integrity policy

(1) Does the company evaluate 3 The company has standardized the None
business partners’ ethical re- requirements for the integrity record
cords and include ethics-related assessment and the signing of the in-
clauses in business contracts? tegrity behavior clause in the Code of
Integrity. The company conducts vari-
ous business activities and needs to
assess the necessary integrity records
of the parties. The various contracts
are reviewed by the company’s legal
department. If the content violates
the integrity management policy, the
company may cancel or suspend the
relevant contract.
(2) Does the company establish 3 The Company designated the Hu- None
an exclusively (or concurrently) man Resources Department (HRD)
dedicated unit supervised by to be responsible for establishing and
the Board to be in charge of supervising the implementation of the
corporate integrity? ethical corporate management poli-
cies and prevention programs. HRD
shall be in charge of assisting the
Board of Directors and management
in auditing and assessing whether the
prevention measures taken for the
purpose of implementing ethical man-
agement are effectively operating, and
preparing reports on assessment of
compliance with ethical management.
97

Ethical Corporate
Management Best-
Listed Companies”
and Reasons
in operating procedures in every De-

cember.
(1) Policies on Ethical Management
In order to prevent any unethi-
cal conduct from employees, the
Company’s top management em-
phasized the importance of hon-
esty and integrity in the monthly
management meetings held in
February and July 2018. Moreover,
cost-related departments need to
increase all vendors’ bases and se-
lect the ones which are most quali-
fied in terms of cost and quality.
Top management also reiterated
that the Company shall engage in
business activities in accordance
with the competition laws and
regulations.
(2) Training on Corporate Governance
The Company organized the “Intro-
duction to Corporate Governance”
online course to all managerial
levels and 341 managers com-
pleted the course and successfully
passed the test in 2018. The HRD
hosted “Ethical management and
morality” orientation courses for
five intakes in 2018 and 53 new
employees completed the training.
(3) Employee Complaint mailbox
The Company has established an
independent reporting mailbox
([email protected])
for internal and external personnel.
We did not receive any complaints
via the official complaint system in
2018.
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Ethical Corporate
Management Best-
Listed Companies”
and Reasons
(3) Does the company establish 3 To prevent conflicts of interests and None
policies to prevent conflicts of provide appropriate communication
interest and provide appropriate channels, the Company established
communication channels, and the Ethical Corporate Management
implement it? Best-Practice Principles, Procedures
for Ethical Management and Guide-
lines for Conduct in 2014 and 2015
respectively. Through internal control
system, audit system and all kinds of
management regulations, the Com-
pany ensures that the enforcement of
the systems are showing results.
(4) Has the company established 3 The Company has established an None
effective systems for both ac- accounting system, internal control
counting and internal control to system and internal audit implementa-
facilitate ethical corporate man- tion rules. The internal audit unit con-
agement, and are they audited ducts an internal audit to check the
by either internal auditors or implementation of the internal control
CPAs on a regular basis? system and continuously review the
company’s operating procedures ev-
ery year.
(5) Does the company regularly 3 The Company delivers integrity poli- None
hold internal and external edu- cies through various channels, such
cational trainings on operational as monthly departmental meetings,
integrity? e-Bulletin Board, and management’s
remarks. For new employees, 5 ses-
sions of training on ethical rules, con-
flicts of interest, business morals, and
all other related subjects are carried
out during the orientation training for
53 new employees in 2018. In addi-
tion, a new on-line course “Introduc-
tion to Corporate Governance” to
managers at all levels was introduced.
There were 341 managers completed
the course and successfully passed
test in 2018.
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Ethical Corporate
Management Best-
Listed Companies”
and Reasons
3. Operation of the integrity channel

(1) Does the company establish 3 The Company has established the None
both a reward/punishment sys- “Employee Complaint Regulations”
tem and an integrity hotline? as a basis for the employees to seek
Can the accused be reached redress for violations of their rights,
by an appropriate person for unfair treatment, or illegal behavior
follow-up? by other employees. An independent
reporting mailbox is set up for internal
and external personnel. This mailbox
is under the responsibility of a desig-
nated person. (comment@evergreen-
marine.com)
(2) Does the company establish 3 The procedure of general whistle- None
standard operating procedures blowing cases shall apply to the com-
for confidential reporting on in- pany grievance and appeal policies.
vestigating accusation cases? The complainer may raise the case
verbally or in writing. The Company
then should make records, investigate
and give a response to the complainer
within 10 working days. The identity
of the whistleblower and the contents
of the complaint are kept confidential.
The whistleblower is protected from
any inappropriate treatment due to
the complaint.
(3) Does the company provide 3 The Company takes whistleblower None
proper whistleblower protec- protection seriously and cases will
tion? be handled by designated Human
Resources Managers. The Company
shall promise confidentiality of the
identity of whistle-blowers and the
content of reported cases and mea-
sures for protecting whistle-blowers
from inappropriate disciplinary actions
due to their whistle-blowing.
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Ethical Corporate
Management Best-
Listed Companies”
and Reasons
4. Strengthening information disclosure

(1) Does the company disclose its 3 The Company’s Ethical Corporate None
ethical corporate management Management Best-Practice Principles
policies and the results of its im- and the results of our implementation
plementation on the company’s have been posted on the Company’s
website and MOPS? website. It also disclosed the effec-
tiveness of the integrity management
in the “Integrity Management Sec-
tion”.
5. If the company has established the ethical corporate management policies based on the Ethical Corporate Man-
agement Best-Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy between
the policies and their implementation: None
6. Other important information to facilitate a better understanding of the company’s ethical corporate management
policies (e.g., review and amend its policies): None
7. Corporate Governance Guidelines and Regulations

Details can be found on http://www.evergreen-marine.com/tw/tbi1/jsp/TBI1_Governance.jsp or
http://mops.twse.com.tw.
8. Other Important Information Regarding Corporate Governance

(1) The Company was ranked in the top 5% of publicly listed companies throughout 2015 to 2017 and
2019 Corporate Governance Evaluation conducted by TWSE. And ranked between the top 6~20%
of public listed companies in 2018.
101
(2) The status of management level attending corporate governance related continuing education/
training in 2018:
Professional
Name and Title Date Training sessions and hours
Organization
Taiwan Institute for Corporate Sustainability and

Feb. 7, 2018
Sustainable Energy Corporate Prosperity/ 3 hours
Hsieh, Huey-Chuan
President
Taiwan Institute of The Crises and Opportunities of
Oct. 24, 2018
Directors Global Rebalancing/ 3 hours
Taiwan Institute for Corporate Sustainability and

Feb. 7, 2018
Wu, Kuang-Hui Sustainable Energy Corporate Prosperity/ 3hours
President Taiwan Institute of The Crises and Opportunities under
Oct. 24, 2018
Directors the Global Rebalancing/ 3 hours
(3) The training courses condition for Auditing personel and Accounting officer
A. Auditing personnel
Professional Training sessions and

Name Date Certificate
Organization hours
1. How to effectively
achieve auditing goals
1. Securities & Futures of operational and
Institute compliance check./6
1. Mar. 16, 2018
Wu, Yu-Chi 2. Accounting Reach hours —
2. Sep. 03, 2018
and Development 2. The internal control
Foundation practice of the internal
auditing under the new
IFRS16/6 hours
1. How do internal au-

ditors do in risk de-
tection and crisis
Accounting Reach and response/6 hrs
1. Jan. 25, 2018
Wang, Jun-Yue Development Founda- 2. Analysis of the “dis- —
2. Apr. 16, 2018
tion closure incident” of
the enterprise and the
“business secret law”/
6 hours
1. Financial analysis
indicator interpreta-
The Institute of tion and business risk
1. Jun. 20, 2018
Leu, Lii-Yi Internal Auditors- prevention/6 hours —
2. Nov. 09, 2019
Chinese Taiwan 2. Computer Aided
Check Technology and
Data Analysis/6 hours
102
2018 Annual Report
Professional Training sessions and

Name Date Certificate
Organization hours
1. Analysis of the inter-

nal control practices
of the latest labor law
amendments and re- Enterprise
Accounting Reach and cent malpractice/6 hrs Internal
1. May. 29, 2018
Dai, Gwo-Woei Development Founda- 2. The impact of the lat- Control Basic
2. Sep. 17, 2018
tion est “Company Law” Ability
amendment on the in- certificate
ternal control practice
of internal auditing and
its response/6 hours
1. Strategic project verifi-

1. The Institute of
cation/6 hrs
Internal Auditors- Certified
2. Auditing and Control
1. Mar. 28, 2018 Chinese Taiwan Internal
Chiu, Chao-Hui Practices for Enter-
2. Sep. 04, 2018 2. Accounting Reach Auditor
prises’ “Cost Savings”
and Development certificate
and “Competitive
Foundation
Strategies” /6 hours
Pre-employment train-
Jul. 09, 2018~ Securities and Futures
Yang, Chung-Chi ing workshop for internal —
Jul. 11, 2018 Institute
auditors/18 hours
1. Financial analysis
indicator interpreta-
tion and business risk
The Institute of Inter- prevention/6 hours
1. Apr. 24, 2018
Chen, Hsiang-Yu nal Auditors-Chinese 2. How to use the EXCEL —
2. Sep. 21, 2018
Taiwan to enhance the audit
and financial efficiency
practice workshop/6
hours
1. Strategic project audit-

The Institute of Inter-
1. Mar. 28, 2018 ing/6 hours
Wang, Su-Chin nal Auditors-Chinese —
2. Aug. 15, 2018 2. Data analysis by actual
Taiwan
case practice/6 hours
B. Accounting Officer
CHANG, CHUAN-FU the Accounting Officer of the Company, has participated in
the continuing education course held by the training institution as determined by the
competent authority for 12 hours in accordance with Article 6 of the “Eligibility Rules for
the Accounting Officer of the Issuer's Securities Exchange and the Professional Training
Method”.
103
Professional
Name Date Training sessions and hours
Organization
Accounting officer Continuing Edu-

Accounting Research cation Course (Financial Account-
Oct. 04, 2018~
and Development ing Standards, Finance, Corporate
Oct. 05, 2018
Foundation Governance, Ethics and Legal Re-
sponsibility)/12 hours
Chang, Chuan-Fu
Taiwan Institute for Corporate Sustainability and Cor-
Feb. 07, 2018
Sustainable Energy porate Prosperity/ 3 hours
Taiwan Institute Of The Crises and Opportunities of

Oct. 24, 2018
Directors Global Rebalancing/ 3 hours
(4) The company has established "internal major information processing procedures"
In order to establish a good internal information processing and disclosure mechanism, the
company passed the “Internal Major Information Processing Procedures” on December 22,
2014 and was disclosed on the company's website for the directors, supervisors, managers
and employee of the Company to follow as a basis for avoiding violations or internal
transactions.
9. Internal Control Systems

(1) Internal Control System Execution Status
Evergreen Marine Corp. (Taiwan) LTD.

Internal Control Statement
Date: Mar. 22, 2019

The Company states the following with regard to its internal control system during the period
from Jan. 1, 2018 to Dec. 31, 2018, based on the findings of self-evaluation:
A. The Company is fully aware that establishing, operating, and maintaining an internal control
system are the responsibility of its Board of Directors and management. The Company has
established such a system aimed at providing reasonable assurance of the achievement of
objectives in the effectiveness and efficiency of operations (including profits, performance, and
safeguard of asset security), reliability, timeliness, transparency of reporting, and compliance
with applicable laws and regulations.
B. An internal control system has inherent limitations. No matter how perfectly designed, an
effective internal control system can provide only reasonable assurance of accomplishing the
three goals mentioned above. Furthermore, the effectiveness of an internal control system may
change along with changes in environment or circumstances. The internal control system of the
Company contains self-monitoring mechanisms, however, and the Company takes corrective
104
2018 Annual Report
actions as soon as a deficiency is identified.

C. The Company judges the design and operating effectiveness of its internal control system based
on the criteria provided in the Regulations Governing the Establishment of Internal Control
Systems by Public Companies promulgated by the Securities and Futures Commission, Ministry
of Finance (hereinbelow, the “Regulations”). The internal control system judgment criteria
adopted by the Regulations divide internal control into five elements based on the process
of management control: 1. Control environment 2. Risk assessment 3. Control activities 4.
Information and communications 5. Monitoring. Each element further contains several items.
Please refer to the Regulations for details.
D. The Company has evaluated the design and operating effectiveness of its internal control system
according to the aforesaid criteria.
E. Based on the findings of the evaluation mentioned in the preceding paragraph, the Company
believes that during the stated time period its internal control system (including its supervision
of subsidiaries), encompassing internal controls for knowledge of the degree of achievement
of operational effectiveness and efficiency objectives, reliability, timeliness, transparency of
reporting, and compliance with applicable laws and regulations, was effectively designed and
operating, and reasonably assured the achievement of the above-stated objectives.
F. This Statement will become a major part of the content of the Company's Annual Report and
Prospectus, and will be made public. Any falsehood, concealment, or other illegality in the
content made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities
and Exchange Law.
G. This statement has been passed by the Board of Directors Meeting of the Company held on Mar.
22, 2019, where zero of the 8 attending directors (include commissioned to attend) expressed
dissenting opinions, and all affirmed the contents of this Statement.
Evergreen Marine Corp. (Taiwan) LTD.
Chairman:
President:

105
10. Major Resolutions of Shareholders’ Meeting and Board Meetings

(1) Major Shareholders’ Meeting Resolutions
A. To approve 2017 earning distribution and the issuance of new shares for capital increase by
earnings recapitalization.
a. Cash dividends to common shareholders is NTD 0.2 per share, with total NTD 802,471,198.
Stock dividends to common shareholders is 50 shares per thousand shares, total 200,617,800
shares are distributed and par value is NTD 10 per share.
b. To authorize the Chairman to adjust ratios of the stock dividends and cash dividends if the
number of total outstanding shares is changed.
Execution:
a. The Board Meeting held on August 13, 2018 resolved September 4, 2018 as dividend record
date.
b. The cash dividend was distributed on September 27, 2018. The change of the Company
registration was approved by Commerce Department, Ministry of Economic Affairs (No.
10701115880) on September 18, 2018. The new stocks were distributed to shareholders and
listed in the stock exchange market on October 4, 2018.
(2) Major Board of Director Meeting’s Resolutions
The Company’s
The resolution of response to the
Board
Audit Committee or opinions of Audit
Meeting Major Proposals
Remuneration Committee or
Date
Committee Remuneration
Committee
Jan. 12, 2018 To approve building and long term charter of container vessels of Approved unanimously
st
(1 Board Meeting Evergreen Marine (Hong Kong) Ltd. and Greencompass Marine by Audit Committee None
of 2018) S.A., the subsidiaries of EMC. members
1. To ratify building and long term charter of container vessels

of Evergreen Marine (Hong Kong) Ltd. and Greencompass
Marine S.A., the subsidiaries of EMC.
2. To ratify the procurement of the Exhaust Gas Cleaning Sys-
tems for fleets owned by the Company and its subsidiaries,
Greencompass Marine S.A. and Evergreen Marine (UK) Ltd.
3. To ratify the acquisition of new dry container of Evergreen
Mar. 23, 2018 Approved unanimously
nd
Marine (Hong Kong) Ltd., a subsidiary of EMC.
(2 Board Meeting of by Audit Committee None
4. To approve the acquisition of new reefer container from
2018) members
“China International Marine Containers (Group) Ltd. (CIMC)”.
5. To approve purchasing the reefer machine from “Carrier
Transicold Pte. Ltd.” and the reefer Remote monitoring mo-
dem from “Emerson Climate Technologies”.
7. To approve 2017 Parent-company-only Financial Report and
Consolidated Financial Report.
106
2018 Annual Report
The Company’s
Board
Date
Committee
8. To approve the earnings distribution of 2017.

9. To approve the issuance of new shares for capital increase
by earnings re-capitalization of 2017.
10. To approve the Company’s certified public accountants and
determine their remuneration.
11. To approve making endorsements and guarantees for sub-
sidiaries and associate company.
12. To approve the 2017 Internal Control Statement.
Approved unanimously
13. To approve 2017 employees’ compensation.
by Remuneration None
14. To approve 2017 remuneration for directors and supervisors.
Committee members
15. To approve 2018 Operation Plan.

- -
16. To convene 2018 Annual General Shareholders’ Meeting.
1. To ratify the acquisition of new dry container conducted by

Evergreen Marine (Hong Kong) Ltd., a subsidiary of EMC.
2. To approve the acquisition of new dry container in the sec-
ond half of the year 2018 conducted by Evergreen Marine
(Hong Kong) Ltd., a subsidiary of EMC.
May. 14, 2018 by Audit Committee None
3. To amend “accounting system”.
(3rd Board Meeting of 4. To approve making endorsements and guarantees for sub- members
2018) sidiaries.
5. To amend “Internal Control System”.
6. To amend 2018 Internal Audit Plan.
7. To approve the issuance of the 14th domestic secured ordi-

- -
nary corporate bond (Green Bond).
1. To approve the long term charter of container vessels of Ev-

ergreen Marine (Hong Kong) Ltd. and Greencompass Marine
S.A., the subsidiaries of EMC.
2. To approve the proposal that Evergreen Marine (Hong Kong)
Ltd., a subsidiary of EMC, acquires 100% shareholding of
Aug. 13, 2018
Hatsu Marine (Hong Kong) Ltd. from Chestnut Estate B.V. Approved unanimously
(4th Board Meeting of
(which is 100% owned by Evergreen International S.A.) and by Audit Committee None
2018)
then mergers it. members
Recusal of Directors and voting situation of Board of Directors
• Director Chang, Kuo-Hua is also the director of Evergreen
Marine (Hong Kong) Ltd., Director Chang, Kuo-Hua,
Chang, Kuo-Ming, and Ko, Lee-Ching are also directors of
Evergreen International S.A.
107
The Company’s
Board
Date
Committee
• Except for directors who recused themselves from the

discussion and resolution, all 6 attendance agreed and ap-
proved the proposal.
3. To approve the acquisition of 20% shareholding of Ever
Ecove Corp.
4. To approve leasing containers from “BAS Finance Co., Ltd.”
and “Oriental Container Leasing Co., Ltd.” by Evergreen
5. To approve the proposal that Evergreen Marine (Hong Kong)
Ltd., a subsidiary of EMC, makes sale and leaseback trans-
action of containers with ORIX Corporation or its subsidiary. Approved unanimously
6. To approve capital increase by subscription of cash. by Audit Committee None
7. To approve making endorsements and guarantees for sub- members
sidiaries.
8. To approve the proposal that Peony Investment S.A., a sub-
sidiary of EMC, participates in capital injection of Evergreen
Marine (UK) Ltd.
• Director Chang, Kuo-Hua and Chang, Kuo-Ming are major
shareholders of Evergreen Marine (UK) Ltd.
9. To stipulate dividend record date. - -
by Audit Committee None
Oct. 8, 2018 sidiaries.
members
(5th Board Meeting of
2018) 2. To stipulate “Regulations of Employee’s Stock option” Approved unanimously
3. To set “Principles of Employees’ qualification and subscrib- by Remuneration None
able shares for Employee Stock option” Committee members
1. To approve the long term charter of container vessels of Ev-

ergreen Marine (Hong Kong) Ltd. and Greencompass Marine
Nov. 13, 2018 S.A., the subsidiaries of EMC. Approved unanimously
th
(6 Board Meeting of 2. To approve building container vessels of Evergreen Marine by Audit Committee None
2018) (Hong Kong) Ltd., the subsidiary of EMC. members
sidiaries.
108
2018 Annual Report
The Company’s
Board
Date
Committee
1. To amend “accounting system”.

2. To approve the termination of Global Depositary Receipt
(GDR) program.
3. To approve the proposal that Peony Investment S.A., the
subsidiary of EMC, participates in capital injection of Balsam
Investment (Netherlands) N.V.
4. To approve the participation of capital increase by cash of
EVA AIR.
• Director Ko, Lee-Ching is also the director of EVA AIR.
• Except for director who recused herself from the discus-
sion and resolution, all 8 attendance agreed and approved
the proposal.
members
sidiaries.
6. To approve a donation to Chang Yung-Fa Charity Foundation.
• Director Chang, Kuo-Hua, Chang, Kuo-Ming, and Ko,
Lee-Ching are also directors of Chang Yung-Fa Charity
Dec. 21, 2018 Foundation.
(7th Board Meeting of • Except for directors who recused themselves from the
2018) discussion and resolution, all 6 attendance agreed and ap-
7. To approve the acquisition of new dry container of Evergreen
8. To approve 2019 budget.
9. To approve the 2018 bonus for management.

• Director Lee, Mong-Jye and Hsieh, Huey-Chuan have
direct personal interest conflicts to the proposal.
10. To approve 2019 compensation for management.
Committee members
• Director Lee, Mong-Jye and Hsieh, Huey-Chuan have
direct personal interest conflicts to the proposal.
109
The Company’s
Board
Date
Committee
11. To approve the 2018 Chairman’s bonus.

• Chairman Chang, Cheng-Yung has direct personal interest
conflicts to the proposal.
• Except for the director who recused himself from the
12. To approve 2019 Chairman’s compensation.
Committee members
• Chairman Chang, Cheng-Yung has direct personal interest
13. To formulate “2019 Internal Audit Plan”. - -
1. To approve changing the Company’s president and the

spokesperson.
• Director Hsieh, Huey-Chuan has direct personal interest
Committee members
2. To approve 2018 employees’ compensation.
3. To approve 2018 directors’ remuneration.
Mar. 22, 2019
(1st Board Meeting of 4. To ratify the acquisition of new dry container of Evergreen
2019) Marine (Hong Kong) Ltd., a subsidiary of EMC.
5. To approve the foundation of Evergreen Shipping Agency
(Israel) Corporation with Green Shipping Ltd.
7. To approve 2018 Parent-company-only Financial Statement
and Consolidated Financial Statement.
members
8. To approve the earnings distribution of 2018.
9. To approve the Company’s certified public accountants and
determine their remuneration.
sidiaries and associate company.
110
2018 Annual Report
The Company’s
Board
Date
Committee
11. To amend the “Procedures for Acquiring and Disposing of

Assets” and the “Table of Authority Limit of Acquiring and
Disposing of Assets & other Financial Matters”. Approved unanimously
12. To amend the “Procedures for Transaction of Derivative by Audit Committee None
Products”. members
13. To amend “Internal Control System”.
14. To approve the 2018 Internal Control Statement.
15. To approve 2019 Operation Plan.

- -
16. To convene 2019 Annual General Shareholders’ Meeting.
11. Major Issues of Record or Written Statements Made by Any Director or

Supervisor Dissenting to Important Resolutions Passed by the Board of
Directors: None
12. Resignation or Dismissal of the Company’s Key Individuals, Including the

Chairman, CEO, and Heads of Accounting, Finance, Internal Audit and R&D:
Apr. 23, 2019
Reason for
Date of Date of
Title Name resignation or
Inauguration Resignation
dismissal
President Lee, Mong-Jye Jan. 01, 2015 Apr. 15, 2019 Retirement
111
IV. Information Regarding the Company’s Audit Fee and Independence

1. Audit Fee
The non-audit fee ratio of the Company has not reached more than one quarter of the audit fee, and
the non-audit fee details are as follows.
Unit: NT$ thousands
Non-audit Fee
Period
Accounting Audit
Name of CPA Covered by Remarks
Firm Fee System of Company Human
Others Subtotal CPA’s Audit
Design Registration Resource
The “Other” items of

non-audit fees include
the following services:
1. Audit of business
tax
Lee, Hsiu-Ling
Jan. 01, 2018- 2. Transfer pricing
PwC Chih, Ping- 20,605 0 500 0 3,171 3,671
Dec. 31, 2018 report
Chiun, etc.
3. Master File project
4. Audit of Agreed-
upon Procedures
5. Green bond con-
vinced service
2. If the Company Changes Accounting Firm and the Audit Fees Charged by the New
Firm is Less than that of the Pervious Accounting Firm, Please Disclose the Audit
Fees Charged by the Two Accounting Firms and the Reason: None
3. Audit Fees Decreases 15% of that of Previous Year, the Decreased Audit Fees,
Decreased Percentage and Reason Should be Disclosed: None
V. Replacement of CPA : None
VI.Audit Independence
The Company’s Chairman, Chief Executive Officer, Chief Finance Officer, and managers in charge
of its finance and accounting operations did not hold any positions in the Company’s independent
auditing firm or its affiliates during 2018.
112
2018 Annual Report
VII. Changes in Shareholding of Directors, Supervisors, Managers and Major

Shareholders
Unit: Shares
2018 As of APR 23, 2019
Pledged Pledged
Title Name Holding Holding
Holding Holding
Increase Increase
Increase Increase
(Decrease) (Decrease)
Evergreen Steel Corp. 3,785,961 0 0 0

Chairman Representative:
0 0 0 0
Chang, Cheng-Yung
Chang Yung-Fa Charity

Director 1,642,020 0 0 0
Foundation
Representative:
31,628,702 0 0 0
Chang, Kuo-Hua
Representative:
5,564,836 0 0 0
Chang, Kuo-Ming
Evergreen International
18,656,515 0 0 0
S.A.
Representative:
Director 4,407 0 0 0
Ko, Lee-Ching
Representative: 90,035 0
0 0
Hsieh, Huey-Chuan (11,000) (40,000)
Independent Director Yu, Fang-Lai 0 0 0 0
Independent Director Chang, Chia-Chee 0 0 0 0
Independent Director Li, Chang-Chou 0 0 0 0
90,035 0
President Hsieh, Huey-Chuan 0 0
(11,000) (40,000)
Chief Executive Vice President 111,098

Wu, Kuang-Hui 0 0 0
(Finance Officer) (190,000)
Project Dept.
Wei, Wei-Der 0 0 0 0
Executive Vice President
Project Dept.
Tang, Chia-Sheng 0 0 0 0
Finance Div.
Tsai, I-Jung 0 0 0 0
113
2018 As of APR 23, 2019
Pledged Pledged
Holding Holding
Increase Increase
Increase Increase
Marketing Div. 1,175

Peng, Chen-Hsiang 0 39,000 0
Executive Vice President (36,000)
Logistice Div.
Lin, Wen-Kuei 189 0 0 0
Shipbuilding Dept.
(Be Concurrently In Charge of
Maritech/Seaman/ Huang, Tsung-Yung 5,000 0 0 0
Maintenance/Supply Dept.)
Project Dept. 0
Tseng, Neng-Fang 55,000 0 0
Senior Vice President (50,000)
Human Resources Dept. 55,750

Yang, Pi-Sao 0 0 0
Finance Div.
48,000 0
Finance Dept. Mo, Cheng-Ping 0 0
(40,000) (40,000)
Finance Div.
Stock Dept. Hsieh, Shu-Hui 0 0 0 0
Insurance & Claim Dept.

Lin, An-Kwo 0 0 0 0
Marketing Div.
Wang, Pei-Chun 378 0 0 0
Logistics Div.
Equipment Control Dept. Liu, An-Hua 30,500 0 0 0
Logistics Div.
Equipment Service Dept. Wu, Chi-Hui 0 0 0 0
Logistics Div.
Intermodal Dept. Kuo, Yuan-Ping 1 0 0 0
Operation Coordination Dept.

Hwang, Wen-Yau 79,883 0 0 0
114
2018 Annual Report
2018 As of APR 23, 2019
Pledged Pledged
Holding Holding
Increase Increase
Increase Increase
Maintenance Dept.
Kung, Chir-Chieh 79,967 0 0 0
Supply Dept.
Wang, Lin-Fa 30,000 0 0 0
Shipbuilding Dept.
Chiang, Shou-Hsing 0 0 0 0
KSG Terminal Div. 0

Chang, Yen-I 1,522 0 0
KSG Terminal Div.

Liaw, Yeong-Nian 74,263 0 0 0
Project Dept.
Jou, Kuen-Cheng 11,485 0 0 0
Project Dept.
Sheu, Dong-Han 0 0 0 0
Project Dept.
Chen, Chun-Yen 0 0 0 0
Auditing Dept. 55,549 0

Wu, Yu-Chi 0 0
Deputy Senior Vice President (111,000) (9,000)
Human Resources Dept.

Chien, Shen-Tai 0 0 0 0
Marketing Div.
North America Dept. Huang, Hsin-Yen 0 0 0 0
Marketing Div.
Latin America Dept. Su, Ming-Sung 4 0 0 0
Marketing Div.
Intra Asia Dept. Wu, Yi-Min 0 0 0 0
Marketing Div.
55,000 0
Europe & Africa Dept. Lin, Sheng-Chia 0 0
(38,000) (10,000)
115
2018 As of APR 23, 2019
Pledged Pledged
Holding Holding
Increase Increase
Increase Increase
Marketing Div.
Near East Dept. Hsu, Huan-Chang 30,000 0 0 0
Maritech Dept.
Yang, Hong-Ming 0 0 0 0
Maritech Dept.
Jeng, Jen-Cherng 58,470 0 0 0
Seaman Dept.
Li, Hua-Lung 35,998 0 0 0

Chang, Chih-Chao 57,994 0 0 0

Yeh, Cheng-Hung 0 0 0 0
Operation Dept.
Hwang, Yi-Syou 0 0 0 0
Maintenance Dept.
Chen, Jenn-Hwang 55,000 0 0 0
Maintenance Dept.
Yeh, Ching-Rong 2,500 0 0 0
Maintenance Dept.
Con, Kuo-Chung 1,000 0 0 0
KSG Terminal Div.

61,221
Terminal Operation Dep. Hwang, Ming-Ling 0 0 0
(54,000)
Finance Div.
Finance Dept. 30,000
Chang, Chuan-Fu 0 0 0
Junior Vice President (75,000)
(Accounting Officer)
Information of Stock Transfer: None

Information of Stock Pledged: None
116
2018 Annual Report
VIII. Changes in Shareholding

Name and Relationship Between the
Spouse’s / Shareholding
Current Company’s Top Ten Shareholders, or
Minor’s by Nominee
Name Shareholdings Spouses or Relatives Within Two Remarks
Shareholding Arrangment
Degrees
Shares % Shares % Shares % Name Relationship
Chang, Kuo-Hua
Director and major
Chang, Kuo-Ming
shareholder
Chang, Kuo-Cheng
Evergreen Chang, Yung-Fa major shareholder

International S.A. 391,786,816 8.68 - 0 0 Major shareholder of
(Panama) Evergreen Evergreen Interna-
International Corp. tional S.A. (Panama)
reinvest the company -
Ko, Lee-Ching Director
Chang, Yung-Fa
Within two degrees
Chang, Kuo-Ming
Representative: kinship
319,646,157 7.08 47,176,327 1.05 0 0 Chang, Kuo-Cheng
Chang, Kuo-Hua
Evergreen Director and major
International Corp. shareholder
Evergreen
Director and major
International S.A.
shareholder
(Panama)
Chang, Yung-Fa
Chang, Kuo-Hua 319,646,157 7.08 47,176,327 1.05 0 0 Within two degrees -
Chang, Kuo-Ming
kinship
Chang, Kuo-Cheng
Evergreen Director and major

International Corp. shareholder
Director and major

Chang, Kuo-Hua
shareholder
Chang, Kuo-Cheng
Major shareholder
Evergreen Chang, Kuo-Ming
262,411,866 5.81 - 0 0
International Corp.
Major shareholder of
Evergreen -
Evergreen Interna-
International S.A.
tional Corp. reinvest
(Panama)
the company
Evergreen
Representative:
92,563 0 0 0 0 0 International S.A. Director
Ko, Lee-Ching
(Panama)
117
Name and Relationship Between the

Spouse’s / Shareholding
Current Company’s Top Ten Shareholders, or
Minor’s by Nominee
Name Shareholdings Spouses or Relatives Within Two Remarks
Shareholding Arrangment
Degrees
Shares % Shares % Shares % Name Relationship
Evergreen
International S.A. Major shareholder
(Panama)
Chang, Yung-Fa 221,101,656 4.90 2,666,833 0.06 0 0 -
Chang, Kuo-Hua
Within two degrees
Chang, Kuo-Ming
kinship
Chang, Kuo-Cheng
Cathay Life Insur-

124,318,716 2.75 - 0 0 - - -
ance Co., Ltd.
Evergreen
Director and major
International S.A.
shareholder
(Panama)
Chang, Yung-Fa
Chang, Kuo-Ming 116,861,569 2.59 39,367,531 0.87 0 0 Within two degrees -
Chang, Kuo-Hua
kinship
Chang, Kuo-Cheng
Evergreen
Major shareholder
International Corp.
Evergreen
Director and major
International S.A.
shareholder
(Panama)
Chang, Yung-Fa
Chang, Kuo-Cheng 90,402,921 2.00 0 0 0 0 Within two degrees -
Chang, Kuo-Hua
kinship
Chang, Kuo-Ming
Evergreen
Major shareholder
International Corp.
Fu, Di-Chen 89,547,318 1.98 4,503,023 0.10 0 0 - - -
Bank SinoPac as
Custodian of Ally
67,161,321 1.49 - 0 0 - - -
Holding Ltd. Invest-
ment Account
New Labor
59,836,728 1.33 - 0 0 - - -
Pension Fund
118
2018 Annual Report
IX. Ownership of Shares in Affiliated Enterprises

As of Dec 31, 2018
Unit: thousand Shares/%
Direct or Indirect
Ownership by
Affiliated Ownership
Directors, Total Ownership
Enterprises by the Company
Supervisors,
(Note1) Managers
Shares % Shares % Shares %
Evergreen International 38,343

430,692 40.36 3.59 469,035 43.95
Storage &Transport Corp. (Note2)
309,458
EVA Airways Corp. 714,825 16.29 7.05 1,024,283 23.34
(Note3)

5,500 55.00 100 1.00 5,600 56.00
Corp. Ltd.
Evergreen Security Corp. 6,336 31.25 10 0.05 6,346 31.30
Charng Yang Development

58,542 40.00 0 0 58,542 40.00
Corp.
Taipei Port Container

109,378 21.03 50,602 9.73 159,980 30.76
Terminal Corp.
Peony Investment S.A 4,765 100.00 0 0 4,765 100.00
Evergreen Marine (Hong

6,320 79.00 80 1.00 6,400 80.00
Kong) Ltd.
Everport Terminal Service

1 94.43 0 5.57 1 100.00
Inc.
Evergreen Marine (Latin

105 17.50 198 33.00 303 50.50
America), S. A.
VIP Greenport Joint Stock

13,750 21.74 0 0 13,750 21.74
Company
Note1: Investee accounted for using equity method

Note2: Information for Evergreen International Storage &Transport Corp. in August, 2018.
Note3: Information for EVA Airways Corp. in December, 2018.
119
120
I. Capital and Shares
1. Source of Capital
Authorized Capital Paid-in Capital Remark

Par Capital
Month/
Value
4 Capital Over view
Year Sources of Capital Increased by

(NT$) Shares Amount Shares Amount Other
(shares) Assets Other
than Cash
Corporate Bond Conversion Jing-Shou-Shang Zi

05/2012 10 3,600,000,000 36,000,000,000 3,474,940,656 34,749,406,560 -
1,482,546 No. 10101094850

05/2013 10 3,600,000,000 36,000,000,000 3,474,946,469 34,749,464,690 -
5,813 No. 10201100610

08/2013 10 3,600,000,000 36,000,000,000 3,474,952,282 34,749,522,820 -
5,813 No. 10201178690

09/2014 10 3,600,000,000 36,000,000,000 3,477,580,184 34,775,801,840 -
2,627,902 No. 10301181780
Capitalization of Retained No. Financial-Supervisory-Securi-

08/2015 10 3,600,000,000 36,000,000,000 3,512,355,986 35,123,559,860 Earnings - ties-Corporate-1040025135; Jing-
34,775,802 Shou-Shang Zi No.10401170530
No. Financial-Supervisory-Securi-
Cash Subscription
12/2017 10 5,000,000,000 50,000,000,000 4,012,355,986 40,123,559,860 - ties-Corporate-1060037504; Jing-
500,000,000
Shou-Shang Zi No.10601173790
Capitalization of Retained The approval from the FSC on

09/2018 10 5,000,000,000 50,000,000,000 4,212,973,786 42,129,737,860 Earnings - Jul. 31,2018; Jing-Shou-Shang Zi
200,617,800 No.10701115880
No. Financial-Supervisory-Securi-
Cash Subscription
12/2018 10 5,000,000,000 50,000,000,000 4,512,973,786 45,129,737,860 - ties-Corporate-1070336402; Jing-
300,000,000
Shou-Shang Zi No.10701157290
2018 Annual Report
Authorized Capital
Share Type Un-issued Remarks
Issued Shares Total Shares
Shares
Shares of TWSE
Common Stock 4,512,973,786 487,026,214 5,000,000,000
Listed Companies
Information for Shelf Registration: None.
2. Status of Shareholders
As of Apr. 23, 2019
Foreign
Other Domestic
Government Financial Institutions &
Item Juridical Natural Total
Agencies Institutions Natural
Persons Persons
Persons
Number of
10 27 244 139,240 559 140,080
Shareholders
Shareholding
147,784,094 283,868,303 471,934,247 2,523,210,065 1,086,177,077 4,512,973,786
(shares)
Percentage 3.27% 6.29% 10.46% 55.91% 24.07% 100.00%
3. Sharesholding Distribution Status

NT$10 per share
As of Apr. 23, 2019
Class of Shareholding Number of Shareholding

Percentage
(Unit: Share) Shareholders (Shares)
1 ~ 999 47,127 11,866,722 0.26%
1,000 ~ 5,000 50,282 117,462,190 2.60%
5,001 ~ 10,000 16,153 112,058,783 2.48%
10,001 ~ 15,000 8,757 103,617,570 2.30%
15,001 ~ 20,000 3,638 63,193,366 1.40%
20,001 ~ 30,000 4,818 115,319,157 2.56%
30,001 ~ 40,000 2,288 78,222,256 1.73%
121
4 Capital Over view
Class of Shareholding Number of Shareholding

Percentage
(Unit: Share) Shareholders (Shares)
40,001 ~ 50,000 1,426 63,882,486 1.42%
50,001 ~ 100,000 2,907 200,246,651 4.44%
100,001 ~ 200,000 1,410 189,144,658 4.19%
200,001 ~ 400,000 653 180,992,682 4.01%
400,001 ~ 600,000 224 108,331,352 2.40%
600,001 ~ 800,000 100 68,665,748 1.52%
800,001 ~ 1,000,000 63 56,942,136 1.26%
1,000,001 or over 234 3,043,028,029 67.43%
Total 140,080 4,512,973,786 100%
Preferred Shares: None
4. List of Major Shareholders

As of Apr. 23, 2019
Shareholding
Shareholder’s Name
Shares Percentage
Evergreen International S.A.

391,786,816 8.68%
(Panama)
Chang, Kuo-Hua 319,646,157 7.08%
Evergreen International Corp. 262,411,866 5.81%
Chang, Yung-Fa 221,101,656 4.90%
Cathay Life Insurance Co., Ltd. 124,318,716 2.75%
Chang, Kuo-Ming 116,861,569 2.59%
Chang, Kuo-Cheng 90,402,921 2.00%
Fu, Di-Chen 89,547,318 1.98%
Bank SinoPac as Custodian of Ally

67,161,321 1.49%
Holding Ltd. Investment Account
New Labor Pension Fund 59,836,728 1.33%
122
2018 Annual Report
5. Market Price, Net Worth, Earnings and Dividends per Share

Unit: NT$
Year 01/01/2019-
2017 2018 04/23/2019
Items (Note 2)
Market Price per Share (Note 1)
Highest Market Price 23.35 18.75 13.60
Adjusted Highest Market Price 22.05 - -
Lowest Market Price 11.20 11.10 11.40
Adjusted Lowest Market Price 10.48 - -
Average Market Price 17.15 14.98 12.27
Net Worth per Share
Before Distribution 15.80 14.82 -
After Distribution 13.87 - -
Earnings per Share
Weighted Average Shares

3,549,342 4,058,989 -
(thousand shares)
Earnings Per Share 1.97 0.07 -
Adjusted Earnings Per Share 1.88 - -
Dividends per Share
Cash Dividends 0.2 - -
Stock Dividends
• Dividends from Retained Earnings 0.5 - -
• Dividends from Capital Surplus - - -
Accumulated Undistributed
- - -
Dividends
123
4 Capital Over view
Year 01/01/2019-
2017 2018 04/23/2019
Items (Note 2)
Return on Investment
Price / Earnings Ratio (Note 3) 8.71 214 -
Price / Dividend Ratio (Note 4) 85.75 - -
Cash Dividend Yield Rate (Note 5) 1.17 - -
Note 1: List the highest and lowest market prices of common stocks for each year, and
calculate the average market price for each year based on the annual transaction
value and volume.
Note 2: Net Worth per share and earnings per share shall be filled in with the information
of the account audited by the accountant in the most recent quarter of the annual
report. The remaining fields shall be filled with the annual information as of the date
of publication of the annual report.
Note 3: Price / Earnings Ratio = Average Market Price / Earnings per Share
Note 4: Price / Dividend Ratio = Average Market Price / Cash Dividends per Share
Note 5: Cash Dividend Yield Rate = Cash Dividends per Share / Average Market Price
6. Dividend Policy and Implementation Status

(1) Dividend Policy
If the Company reports a surplus at the year end, after clearing taxes, the Company
shall first offset losses from previous years (if any), then set aside 10% of the balance
as the statutory surplus reserve, and set aside or reverse a special surplus reserve per the
provisions. After that, the Board of Directors shall propose a surplus distribution plan of
the balance plus the retained earnings accrued from prior years, submit the distribution
plan to the shareholders’ meeting for approval, and then distribute it.
The dividends shall be distributed in the combination of cash and stocks, provided
that cash dividends shall not be less than 10% of the total amount of dividends.
(2) Proposed Distribution of Dividends
The proposal for the distribution of 2018 profits was passed at the meeting of the
Board of Directors on March 22, 2019. The proposal not to distribute dividends will be
discussed at the annual shareholders’ meeting.
7. Impact of Stock Dividends issuance on the Company’s Business

Performance and Earnings per Share: N/A (The Company does not disclose
2019 financial forecast.)
124
2018 Annual Report
8. Employees’ Compensation and Remuneration of Directors and

Supervisors
(1) Information Relating to Compensation of Employees, Directors and
Supervisors in the Articles of Incorporation:
If the Company makes profit in a fiscal year, employee compensation, no less than
0.5% of the profit, and remuneration of directors, no more than 2% of the profit, shall
be set aside. However, in case the Company has accumulated losses, the Company
shall reserve an amount to offset the accumulated losses beforehand. The employee
compensation and the remuneration of directors shall be set aside afterwards according
to the principles mentioned above.
The employee compensation shall be distributed in the form of stock or cash, while
the remuneration of directors shall be distributed only in the form of cash.
The profit mentioned above refers to profit before tax without deducting employee
compensation and remuneration of directors.
(2) In the current period, the estimated basis of the remuneration of
employees, directors and supervisors, the calculation basis of the number
of employees' remuneration shares distributed by the stock and the
actual distribution amount are treated as if they differ from the estimated
number of entries:
a. In this period, the estimated basis for the employee's remuneration and the amount
of compensation for directors and supervisors and the basis for the number of shares
allotted for dividends are calculated. The Company's annual earnings and operating
results are used as the basis for estimating employee compensation, director
remuneration, and the number of shares allotted.
b. Accounting treatment if the actual allotment amount differs from the estimated
number of columns:
If there is a difference between the actual number of allotments and the estimated
number of columns, the company will recognize the expenses for the current year.
(3) Appropriation for Employees Compensation and Remuneration of
Directors and Supervisors:
Resolution of Board of Directors

Item
(Mar 22, 2019)
Remuneration of Directors and Supervisors

-
(Cash)
Employees’ Compensation (Cash) NT$2,560,320
125
4 Capital Over view
(4) The Distribution Status of Employee Compensation and Remuneration

of Directors and Supervisors of the previous year (including distributed
shares, amount and market price). If the amount distributed varies from
the amount recognized, the amount of the difference should be displayed,
along with the reason and the status of the handling procedure:
The Company distributed remuneration of employee compensation NT$36,322,186 and
directors and supervisors NT$10,206,849 of year 2017. The amounts distributed did not
vary from the amount recognized.
9. Buyback of Treasury Stock: None
126
2018 Annual Report
II. Bonds
1. Corporate Bonds
Corporate Bond Type 13th Secured Corporate Bonds
Issue date April 25, 2017
Denomination NT$1,000,000
Issuing and transaction location Republic of China
Issue price Par
Total price NT$8,000,000,000
Coupon rate 1.05%
5 years
Tenor
Maturity: April 25, 2022
Hua Nan Commercial Bank, Ltd.,
First Commercial Bank,
Mega International Commercial Bank
Co., Ltd.,
Guarantee agency
Land Bank of Taiwan,
Chang Hwa Commercial Bank, Ltd.,
Taiwan Cooperative Bank,
Bank Sinopac Co., Ltd.
Consignee Bank of Taiwan
SinoPac Securities Corporation acts as
Underwriting institution
the lead manager
Certified lawyer Kuo, Hui-Chi
CPA Lai, Chung-Hsi
Repayment of 50% of the principal in the
Repayment method fourth year and the remaining 50% in the
fifth year
Outstanding principal NT$8,000,000,000
Terms of redemption or advance repayment None
Restrictive clause None
Name of credit rating agency, rating date,
None
rating of corporate bonds
As of the printing date of this an-
nual report, converted amount of
Other None
(exchanged or subscribed) ordinary
rights
shares, GDRs or other securities
attached
Issuance and conversion (exchange
None
or subscription) method
Issuance and conversion, exchange or sub-
scription method, issuing condition dilution, None
and impact on existing shareholders’ equity
Transfer agent N/A
127
4 Capital Over view
Corporate Bond Type 14th Secured Corporate Bonds

Issue date June 27, 2018
Denomination NT$1,000,000
Issuing and transaction location Republic of China
Issue price Par
Coupon rate 0.86%
5 years
Tenor
Maturity: June 27, 2023
Guarantee agency First Commercial Bank
Consignee Bank of Taiwan
First Securities Inc. acts as the lead
Underwriting institution
manager
Certified lawyer Kuo, Hui-Chi
CPA Lee, Hsiu-Ling
Repayment method Repayment in lump sum upon maturity
Outstanding principal NT$2,000,000,000
Terms of redemption or advance repayment None
Restrictive clause None
Name of credit rating agency, rating date,
None
rating of corporate bonds
As of the printing date of this an-
nual report, converted amount of
Other None
(exchanged or subscribed) ordinary
rights
shares, GDRs or other securities
attached
Issuance and conversion (exchange
None
or subscription) method
Issuance and conversion, exchange or sub-
scription method, issuing condition dilution, None
and impact on existing shareholders’ equity
Transfer agent N/A
2. Corporate Bond Under Processing: None
3. Corporate Bonds with Warrants: None
III. Preferred Stock: None
128
2018 Annual Report
IV. Global Depository Receipts

Issue date
September 2, 1997~
August 2, 1996
September 27, 2018
Item
London Stock London Stock

Issuance and listing
Exchange Exchange
Total amount US$115,000,000 -
Unit issuing price US$18.35 -
Units issued 6,267,030 GDRS 2,116,352 GDRS
Capital increase by
Evergreen Interna-
Source of negotiable securities retained earnings and
tional S.A. (Panama)
capital reserve
Amount of negotiable securities 62,670,300 21,163,520
Same as those of Same as those of

Rights and obligations of GDR holders common share common share
holders holders
Trustee - -
Citibank N.A. New Citibank N.A. New

Depository bank
York York
Citibank Taiwan Citibank Taiwan

Custodian bank
Limited Limited
Outstanding balance - 78,254GDRS
Issue cost: Evergreen International S.A. (Panama)

Treatment of expenses incurred at issu-
Expense incurred in the duration: Evergreen
ance and thereafter
Marine Corp. (Taiwan) LTD.
Important conventions about depository Please refer to Deposit Agreement and Cus-
and escrow agreement tody agreement for details.
Highest 6.34
2018 Lowest 3.60

Market
Average 4.67
price per
Highest 4.36
unit
1/1/2019 to
Lowest 3.76
4/23/2019
Average 3.93
The issuance of global depositary receipts (GDRS) was approved by the Securities
129
4 Capital Over view
and Futures Bureau of Financial Supervisory Commission of the Taiwan (ROC) on June
19, 1996. The Deposit Agreement was signed on August 2, 1996 and approved by the
UK Securities Authority to list in London Stock Exchange. The GDRS are issued in Asia,
Europe and USA.
The Company initially issued 6,267,300 units of GDRS, represented 62,670,300
common shares of the Company. The GDRS issuing price is US$18.35 per unit (about
NT$505 per unit) and the total amount of GDRS is about US$115,000,000. Subsequently,
the Company additionally issued 2,116,352 units because of capital increase by retained
earnings and capital reserve. Until April 23, 2019, the total issuance amount of GDRS is
8,383,382 units represented 83,833,904 common shares and the outstanding balance is
78,254 units represented 782,629 common shares.
The Board of Directors approved the termination of Global Depositary Receipt (GDR)
program on December 21, 2018.
V. Employee Stock Options: None
VI. Status of New Shares Issuance in Connection with Mergers and

Acquisitions: None
VII. Financing Plans and Implementation

The Implementation of uncompleted financing plans are as follows:
1. 14th Secured Corporate Bonds (Green Bonds)
Unit: NT$ thousands
Issuance 14th Secured Corporate Bonds (Green Bonds)
Issue amount NT$2,000,000: Denomination: NT$1,000
5 years; The issuance date is June 27, 2018, and the maturity date is
Tenor
June 27, 2023.
Purpose Buying shipping fuel environmental protection equipment
Execution status 2018 Q3 2018 Q4 2019 Q1 Total
Funds using Planning 163,025 97,517 152,030 412,572

Funds using
schedule
schedule Actual 165,088 113,738 196,292 475,118
& Execution
progress Execution Planning 8.15% 4.88% 7.60% 20.63%
progress Actual 8.25% 5.69% 9.81% 23.75%
130
2018 Annual Report
2. 2018 Capital Increased by Cash

Unit: NT$ thousands
Issuance 2018 Capital Increased by Cash
Issuing 300,000,000 new shares.

Denomination: NT$10 dollars
Issue amount
Issue price: NT$10.7 dollars
Total amount: NT$3,210,000 thousand
Purpose Repay bank loans
Execution status 2018 Q4 2019 Q1 Total
Funds using Planning 1,223,333 706,667 1,930,000

Funds using
schedule
schedule Actual 1,842,500 87,500 1,930,000
& Execution
progress Execution Planning 38.11% 22.01% 60.12%
progress Actual 57.39% 2.73% 60.12%
131
5 Business Development Outline
I. Business Highlights
1. Business Scope
(1) The company’s main business areas
Evergreen's core business is International Container Sea-Freight Liners. Our
fleet capacity was ranked as seventh in the world at the end of 2018. All our service
routes are running under a regular liner basis, also involving port stevedoring, inland
transports, and comprehensive logistics services. Our clients cover various areas such as
manufacturing, trading companies, and retailers located all over the world. Our business
is fully related to global economic Ups and Downs, as well as fleet capacity supply and
demand for all trades.
(2) Adjustments to our service routes in 2018
Transpacific routes
Evergreen Line, COSCO, CMA CGM and OOCL established the “OCEAN
Alliance” on Apr. 1, 2017. The Trans Pacific trade was enhanced to a total of 19
services in 2019, including 12 loops for US West Coast loops (PSW 8 loops, PNW 4
loops) and 7 loops for the US East Coast.
Far East-Europe/Mediterranean routes

A. Effective April 2018, new Evergreen 20K ships have been deployed in European
routes step by step, and 6 European services and 5 Mediterranean services under
OCEAN Alliance.
B. Mediterranean regional service: In 2018, Evergreen Line aimed at consolidating and
rationalizing the Intra-Med feeder Network. The utilization efficiency of self-owned
slot was improved and significantly higher than that of last year, with an average
loading rate of 99%.
Far East-Latin America/Africa routes

A. Far East- Africa services: Maintain stable service through joint agreement with
COSCO and X-press on AEF service, and provide ASEA service by allocation
swaps with CMA CGM and Emirates. Furthermore, AEF service extends to Central/
South China to provide direct service for Shanghai, Ningbo and Shekou.
B. Far East-South Africa services: Keep joint agreement with COSCO/ONE/PIL on
ASA and FAX 2-loop services to offer the most competitive and stable individual
services to Durban and Cape Town. And one more M-type vessel deployed to
upgrade ASA into weekly service.
C. Far East-Panama/Caribbean: Right now there are three services AUE, NUE and
SAX in the Far East-Panama/Caribbean trade.
D. Far East-Mexico/South American West Coast: There are 10 vessels in WSA jointed
service and 10 vessels in WSA2 jointed service. Meanwhile, Evergreen deploys 7
vessels in WSA and 1 vessel in WSA2. And Evergreen slot swaps with COSCO/
132
2018 Annual Report
CMA CGM for WSA3/WSA4.

E. Far East-South American East Coast: There are 12 vessels in ESA joint service,
Evergreen deployed 4 vessels, and Evergreen slot swaps with ONE for ESA2.
Far East-Middle East/Red Sea/India Subcontinent/Australia routes

A. Far East-Middle East Service: There are 5 services under OA day 1 product, which
will be adjusted to 4 services in 2018 Q3.
B. Far East-Red Sea Service: The OCEAN Alliance cooperated with PIL for Far
East to Red Sea service in April 2017, and maintained two sailings per week. The
vessel deployment and port coverage from the Far East to Red Sea loop were
simultaneously upgraded with additional calls from North/South China/Korea and
Sokhna, Egypt.
C. Far East-Indian Subcontinent: The service to India has been increased from 2 loops
to 3 loops, and service to Pakistan reduced to 1 loop from 2 loops to meet the
market demand in 2018.
D. Far East- Australia Service: Evergreen deployed two vessels in the new joint venture
CAE (Central and South China/Australia Express) service with partners in August
2018. There are a total of five vessels (CAT 1/NEAX 2/CAE 2) in the Far East to
Australia string.
Intra-Asia Routes
A. To meet demand of fast growth among Korea, China, Taiwan and the Philippines,
Evergreen decided to revamp the KTP service to a new pattern which can extend
coverage to Busan, Shantou, Hong Kong, Shekou, Manila North Port but drop
Kwangyang, Shanghai, Ningbo, Batangas, and Subic. To maintain the service scope
to Batangas and Subic, the new TMS (Taiwan-Manila-Subic) service was launched
at the same time.
B. To meet the demands of fast growth between Thailand and Indonesia, Evergreen
decided to launch new TIX service (Thailand-Indonesia Express service) which can
cover Laem Chabang, Singapore, Tanjung Pelepas, Jakarta, Tanjung Pelepas, Port
Klang, and Laem Chabang.
C. In response to both customer demand for increased service in the countries and the
potential for a growth in trade, Evergreen decided to launch its new CVT service
(China-Vietnam-Thailand service) which can cover Shekou, Hong Kong, Ho Chi-
Minh, Sihanoukville, Laem Chabang, and Haiphong. Moreover, we also took this
opportunity to reshuffle TWT service seeking for better performance and operation
efficiency.
D. To meet the demands of fast growth to East Malaysia and South Philippines,
Evergreen decided to launch its new TPM (Taiwan-Philippines-Malaysia) service
and revamped.
133
E. Since November 2018, Evergreen launched its CPH service (China - Philippines
Service) and enhanced South-Philippines Service to twice a week. This provides
express service from South China to South Philippines and vice versa.
F. To enhance the service network in VNDNG, the ongoing NSC service had been
revamped and added VNDNG call on the south-bound route from December 2018.
2. Container Shipping Industry Profile

(1) Macroeconomic Environment
According to Alphaliner statistics, global port container throughput increased by
4.8% to 814.6 million TEU in 2018 compared with 2017, and global capacity increased
by 5.8% over 2017. Basically, the world economy continued its growth trend of 2017
years in 2018, but the growth rate of Asian and European routes was slowing down,
and weak economic growth in some European countries, such as the United Kingdom,
affected the trade transportation of the Far East to European routes, while the Pan
Pacific route was affected by the tariff policy of Sino-US trade conflicts, with some
shippers speeding up early delivery, the demand for space increased in Q4, 2018. The
rapid economic development of Asian emerging economies and the growth of import
and export trade have led to a higher in regional routes.
Since the main industry integrations and mergers have been done in past years, the
three marine alliances have been put officially into full operation and have gone well.
The purpose of marine alliance is to improve the network coverage and streamline the
operation, reducing the cost of logistics supply, enhancing management capabilities
and achieving other synergies. The integrations and alliance in marine markets have
significantly changed the structure of the global shipping industry, and the market
concentration has increased considerably. The top ten carriers represented 82% of the
global market capacity share in 2018. Alphaliner's forecast market capacity growth rate
at 3.1%, with cargo volume increased at 3.6%. Thus a balance situation between supply
and demand is expected.
(2) Relationships with Up-, Mid- and Downstream Companies
Marine shipping is the main means of transportation in international trade. The
ratio of transportation volume via container ships and total cargo tonnage has been
raised year on year, covering most consumer product items. Not only is its industry
chain interconnectivity extremely high but it is also closely related to consumer
livelihood. This is summarized below:
Upstream industry
A. The Shipyards
B. Transportation equipment manufacturers
C. Ship or transport equipment rental providers
134
2018 Annual Report
Mid-stream industries
A. Marine fuel suppliers
B. Ship and transportation equipment repairers
C. Terminal operators
D. Land transportation logistics providers
E. Shipping alliance or slot purchasing partners
Downstream industries
A. Direct shippers (manufacturers, retailers, service providers)
B. Freight forwarding and logistics industry
(3) Product Development Trends
A. Industry concentration at an all-time high
The market concentration increased over the past few years, marine operators
built more Ultra Large Container Vessels (ULCV) to achieve better scale
economy and reduce costs, which also enhance the trend of M & A, and the
operation in the way of alliances. At the end of 2018, the world's top 10 major
carriers represented 82% of global capacity (vs 77% in 2017), and with only 7
carriers with a market capacity over 5%, the market concentration is at an all-
time high.
B. Close relationships between port and shipping company
The relationship between ports and carriers is much closer than ever before.
Under the operation of marine alliance, how to rationalize the routes and how to
operate those ULCVs are the key issues for the industry. For those mega groups
who run both port side operation and sea transportation, it is possible for them to
achieve synergy by bringing their core business together to strengthen its global
gateway position.
C. Shipping digitalization and e-commerce
Maritime technology and digitalization have been improved recently, not only
improving the efficiency on sea and landside transportation, but also the safety of
ship navigation. The rapid development of e-commerce and cross-border trade is
expected to increase the cargo volume.
D. Environmental protection and new regulations
The control of carbon emissions and the enhancement of environmental
protection continue to be the main issue in the international maritime industry.
The target of International Maritime Organization is to cut 50% of the emissions
by 2050 compared with 2008, and regulations of new low sulphur fuel will take
effect from January 1, 2020.
135
(4) Status of Market Competition

A. Top three Carriers retain market positions
Alliance 2M OCEAN Alliance THE Alliance
Evergreen
Maersk Hapag-Lloyd
CMA CGM
Member MSC ONE
COSCO
HMM YML
OOCL
Total Capacity (TEU) 7.87M 6.68M 3.77M
Cooperative Capacity
3.1M 3.7M 2.6M
(TEU)
Cooperative Service 30 39 35
Cooperative vessels 260 330 265
B. Major marine alliance market share

The market shares are 37%, 36% and 25% for Asia-Europe trade and
19%, 38% and 25% for Asia-North America trade on major marine alliance of
2M,OCEAN Alliance and THE Alliance.
3. Status of Technology and R&D

(1) R&D expenditures and results during the reporting year
Green Fleet
Evergreen commits to pollution prevention, energy conservation, and greenhouse
gas reduction, and to protect our planet in accordance with international environmental
protection conventions and environmental protection regulations. We have strict
standards and operational procedures for all environmental protection and pollution
prevention and control of ships sailing at sea, and we will use the latest technology as
soon as it is available so as to minimize the impact of container shipping operations
both on marine life, on port communities, and on humanity worldwide.
In order to provide quality services to safely deliver goods to the port of destination
and take into account environmental protection, energy conservation, as well as
reducing greenhouse gas emissions and air pollution have always been the principle
and endeavor of Evergreen. The Shipbuilding Dept. is responsible for the design of
new ships. New ship designs incorporate the latest international laws and conventions.
The Evergreen philosophy of green ships means advanced marine technology is used
to optimize each ship type in order to maximize returns and satisfy energy conservation
targets.
136
2018 Annual Report
Twenty units of 2,800 TEU B-type vessels, using main engines with electronic
fuel injection, produce 20% less NOx emissions than conventional engines and so
comply with the 2015 Energy Efficiency Design Index (EEDI) and Tier II NOx
emission standards set by the IMO. The B-type vessels shipbuilding plan should
be completed and delivered by the second half of 2019. The ten Gen 3 B-type
vessels under construction by CSBC Taiwan are equipped with the latest sword bow
developed by the shipyard. The bow can handle different drafts and speeds while
effectively reducing wave resistance and drag when the ship is in motion to optimize
ship speed and engine performance. Fuel efficiency is improved by 10% compared
to the conventional bulbous bow.
The “Environmental Guardians” page on our website has been constantly
maintained so as to proactively share our management of emissions and treatment of
ballast and sludge. There are details for the latest environmental protection designs
of S-type, L-type, and B-type vessels and other green instruments for the easy
reference for our customers.
Maritime Certification
Evergreen upholds the spirit and vision of sustainable development and firm
commitment to professional maritime training. The Evergreen Seafarer Training Center
has comprehensive training equipment and we rigorously organize training courses
to continuously improve the professional knowledge and skills of our crews so as to
prevent the incidence of maritime accidents and environmental pollution.
In 2018, the Evergreen Seafarer Training Center organized a total of 224 professional
training courses in 26 categories for 1,639 trainees.
In January 2018, the Maritime and Coastguard Agency of the United Kingdom
(MCA) re-approved the "Human Element Leadership and Management (Management
Levels)", "Human Element Leadership and Management (Operational Levels)" as
specified in the 2010 amendment to the STCW (International Convention on Standards
Of Training, Certification and Watchkeeping for Seafarers) "Ship's Cook MLC, 2006
Regulation 3.2.3", and other training courses.
In June 2018, the HK MARDEP (Hong Kong Marine Department) re-approved the
Evergreen Seafarer Training Center for offering training on the course specification
of STCW (International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers) 2010 Manila amendments.
To expand the cultivation of maritime professionals, Evergreen has been stepping
up its cooperation with National Taiwan Ocean University and National Kaohsiung
University of Science and Technology. Starting from the post-bachelor program
of maritime transportation and engineering for cultivating respective professional
knowledge and skill, evergreen also offers the opportunity to non-maritime
137
undergraduates to engage in maritime work. Evergreen has also been subsidizing the
total tuition and part of the accommodation to qualified students, who will be awarded
with an internship onboard the Evergreen fleet. Vacancies will be offered to cadets with
excellent performance.
E-Commerce
Evergreen introduces paperless Bill of Lading (B/L) and dispatch documentation
via its ShipmentLink digital portal, enhancing connectivity for exporters and importers
with banks, insurers, regulators, and customs and port authorities. Evergreen is the
first container carrier to integrate with Bolero’s proven electronic Bill of Lading (eBL)
solution.
In line with its avowed mission to deliver the highest standards of customer
service through continual improvement, Evergreen has introduced two new Intelligent
Services - the intelligent i-B/L (Bill of Lading) and i-Dispatch, a solution that delivers
documents associated with such transactions.
The advantages of this new integration for Evergreen’s container shippers start
with the rapid issuance and transmission of the i-B/L. This is helpful in all cases but
particularly for short-sea shipments when a paper Bill of Lading can sometimes arrive
later than the vessel, making it difficult for importers to pick up cargo on a timely basis.
However the advantages of i-B/L do not end there. The paperless environment
allows reviews and alterations to be undertaken online and speeds up cash-flow by
avoiding the delays associated with traditional documents. Carriers can release goods
and banks can release payment to shippers far more quickly.
Evergreen is pleased therefore to add i-B/L and i-Dispatch to its existing suite of
electronic functions, including shipment booking and tracking, for the use of customers
via Evergreen ShipmentLink. Our partnership with Bolero, and introducing new digital
functionality, marks the expansion of the established online portal into high-volume
container trades.
Evergreen is committed to offering a high-quality and reliable shipping information
system, to provide customers with an efficient, safe, and reliable e-commerce digital
platform to assist all parties in the trade lane to reduce costs and improve operational
efficiency. Evergreen's e-commerce platform also has a number of functions such as
schedule inquiry, container dynamic tracking, Bill of lading Management, volume
analysis, electronic data transmission exchange, container total weight verification
declaration and so on.
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2018 Annual Report
(2) Future R&D Plans

A. The company is expected to invest about NT$ 20.03 million in related services
expenditure on the following projects:
Description of
Projects Summary Schedules Progress
up to 2019/4/23
The company’s current ap-

plication system, was gradu-
ally converted from the D2K
platform into a Web enable
platform. Projects expected
Application
this year include: Booking Under process of
system reform
system dangerous goods 2019/12/31 system develop-
and upgrade de-
audit, Bill of lading opera- ment
velopment Project
tions, Container seal opera-
tions, Cargo damage noti-
fication operations, Budget
operations, General ledger
operations and other items.
The company’s Service line

Empty/laden Con-
route combined with the
tainer of Ocean
regional transship Hub, re-
& Inland Rout-
organizes the point-to-point
ing Optimization/ 2019/06/30 Officially online
Routing, making the transit
Communication
days and transshipment
Platform Develop-
costs more competitive and
ment
more effective.
Manager Change Enhance and integrated

of Vessel (COV) management of all-operating
on Current Sail- service lines for changing of
ing Schedule and vessels on sailing schedules
2019/06/30 Officially online
Integrated Man- which will effectively reload
agement Platform export containers, reduce
System Develop- the tranship, and the termi-
ment nal storage cost.
Empty/Laden Set up a big data database,

Container Ocean/ accelerate analysis of busi- Under process of
inland combined ness results and provide busi- 2019/07/31 system develop-
transport Big Data ness department to quickly ment
Analysis respond to market changes.
139
Description of
Projects Summary Schedules Progress
up to 2019/4/23
Reduce the inventory for

Vessel spare parts
using it efficiently, save the Under process of
allocate/ transfer
cost on the new procure- 2019/07/31 system develop-
and recondition-
ment, and the transportation ment
ing
of the vessel spare parts.
Analyze the data from the

vessel, such as speed and
Big Data analysis
the position, in order to pro- Under process of
for Vessel opera- 2019/12/31
vide the best instructions to data validation
tion
the vessel for use of oil and
reduced fuel consumption.
In i-B/L (Intelligent Electronic

Bill of Lading) & i-Dispatch
i-B/L & i-Dispatch (Intelligent Express Elec-
of Bolero project tronic Document) Provide
enhancement & customers with the function
Under process of
Optimize - Add L/ of electronic bills of lading 2019/06/30
system analysis
C billing & financ- transfer and electronic file
ing function with exchange on the website to
related Banks increase the customer’s L/C
billing function through the
bank.
Blockchain Ap- Evergreen website Ship-

plication Project- mentlink will provide custom-
Development of ers with the ability to provide Under process of
new functions O/A (Open Account) bills of 2019/08/31 system develop-
with related Banks lading to the bank to acceler- ment
for financing of ate the company’s revenue
import bills and cash flow.
Develop a Tender Bidding op-

Computerization eration module to provide the
of International Market and Project department
large-scale cus- as the basis for quotation, and
2019/03/31 Officially online
tomer Tender’s automatically generate the
shipment Bidding quotation content requested by
operation customers to bid and improve
work efficiency.
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2018 Annual Report
B. Factors leading to success in future R&D projects

a. Knowledge of trends
b. Sound planning
c. Coordinated execution
4. Short & Long Term Business Plans

Short-Term:
(1) Adjust the fleet capacity to meet the market demand timely.
(2) Improve ship loading factors as well as mixed cargo.
(3) Expand joint venture cooperation, and develop new routes.
(4) Establish key performance indicators, and review operation performance.
Long-Term:
(1) Strengthen training programs, and establish cultural heritage.
(2) Encourage innovative thinking to ensure healthy growth.
(3) Continue to reduce costs, full participation for the goal.
(4) Enhance the operation quality, and increase overall efficiency.
II. Market and Industry Analysis

(1) Major Performance Indicators of Main Service Scopes (KPI)
Unit: NT$ Thousands
Year Revenue of the Group Revenue of the Group
Service routes for 2017 for 2018
America 52,789,741 65,814,288
Europe 37,900,327 32,141,861
Asia 29,778,828 33,672,426
Others 14,889,414 21,427,908
141
(2) Major Domestic Competitors & their Global Market (Fleet Capacity) Shares
Year/Item
March 2018 March 2019
Taiwan-
Capacity Market Share Capacity Market Share
based Shipping
lines (TEU) (%) (TEU) (%)
Evergreen (Group) 1,069,707 4.9 1,193,471 5.2
Yang Ming Lines 589,765 2.7 656,574 2.9
Wan Hai Lines 245,054 1.1 237,653 1.0
TS Lines 76,042 0.3 72,966 0.3
Data Source: Alphaliner
(3) Market Outlook for Supply-Demand and Growth
Far East to North America Trade

The latest US GDP Growth Rate advanced an annualized 2.9%, slightly higher than
the previously estimated 2.7%. But the unemployment rate hit a record low of 3.7% in
nearly 50 years.
According to the AFP, US Consumer confidence will brighten in 2019 although
there is still an unsettled trade negotiation with mainland China. The IMF projected 3.3%
global GDP growth and 2.3% in the US in 2019.
North America to Far East Trade

Southeast-Asia inbound space demands keep increasing as a result of the continued
on-going Sino-American trade negotiation. Some of the USA outbound cargo such as
animal feed, cotton, grain, Lumber, plastic scrap and waste paper, has been diverted
to the Southeast Asia area due to limited import license permits from the Chinese
government regarding solid materials.
All carriers promptly feedback to the development of trade negotiations including
proper vs. deployment, port terminals facilities upgrade, sufficient chassis supply,
logistics management, and inland movement arrangements. These are major key factors
for handling U.S. export cargo well.
Far East to Europe/Mediterranean Trade

From Q2 2019, the Ocean Alliance will have an additional loop on Asian-European
trade, from 6 to 7 loops weekly. It covers more major ports and has a faster transit time.
The Ocean Alliance is not very different from Asian-Mediterranean trade. The main
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2018 Annual Report
change in the market is the cooperation between ZIM and 2M. The market is expected
to maintain a stable situation.
Europe to Far East Trade

The Chinese Government adjusted its waste commodity policy, imposing much
stricter quality restrictions, which in consequence will see a decrease in the total import
volumes through Chinese ports. Some businesses are being diverted to South East
Asian destinations. From Q2 2019, Europe to Asia trade core services NEU6 (CEM)
and NEU7 (CES) will deploy 20,000 TEU (G-type) and 14,000 TEU (T-type) vessels
respectively, which will increase total capacity by 39% compared with 2018.
Europe to North America Trade

According to CTS trade statistics, in Q4 2018 the fleet capacity of the Transatlantic
Westbound market increased by 4.5% in comparison with Q4 2017, while total demand
increased by 6% YoY in 2018. With a better supply and demand balance, the average
revenue increased. In the 3rd year of the “Ocean Alliance”, the Trans-Atlantic service
offering will remain unchanged.
Far East – Mexico/South America West Coast Service

The capacity for Mexico/West Coast of South America increased in Q2 2018, Ocean
freight dropped due to overcapacity in the market capacity and will see no change in
2019, and the O/FRT and revenues are expected to increase in 2019.
Far East – Panama/Caribbean Market

Major countries’ GDP are stably growing along with increasing cargo sources
and improved revenue, except for Venezuela which still suffered from political and
economic chaos. The IMF forecast the economic growth of 2019, and the economic
growth of Panama/major Caribbean countries can maintain positive with 5%, as well as
volume and revenue.
Far East to East Coast South America

The revenue was increased due to extra loaders in 2018. According to the IMF,
The economy of South America areas are expected to increase by 3% in 2019. A stable
market on the East Coast of South America is expected for 2019.
Far East to Africa Trade

Consuming power in South Africa went down due to the impact of currency and oil
prices since March 2018. GDP growth also went downward from 1.1% to 0.8%. The
IMF forecasts growth to 1.2% and positive growth in 2019 for South Africa.
Respective GDP growth of Kenya and Tanzania is forecast with a slight increase
to be 5.8% and 4.0%, and the economic situation is forecast to be positive via the link
with Chinese business exchanges.
143
Intra-Asia Trade
A total of 20 units of 2,800 TEU "Type B" container vessels ordered by Evergreen
Group, fifteen of which had been phased into the NSD, NSB, JPI, CIT, LKX services
and the remaining new vessels are expected to be fully operational in the Intra Asia
region in 2019. Furthermore, Evergreen will charter 14 units of 2,500 TEU and 24 units
of 1,800 TEU class vessels. All 38 units of ships will be newly built and are due to be
delivered from the third quarter of 2019. This new building program is to meet future
market demand and to continue with our ongoing fleet renewal.
Reefer business
With the population and income growth especially in the emerging market, and the
shift of the seaborne reefer commodity transportation from specialized reefer mode to
the containerized vessel, the reefer container volume is estimated at 4% annual growth
in the coming three years.
The space enlargement on European trade and service restructure on West Coast
South America trade will enhance our reefer competition and enlarge our reefer
traffic, as well as the enhancement of Cold Treatment shipment from South Africa and
Controlled Atmosphere shipment from South America as a niche market to bring us
reefer volume growth.
Special equipment
Taking the opportunity and strategy of the One Belt, One Road Initiative in China,
cargo bound for the Gulf is expanding and increasing around 32% in 2018. In view
of the space enlargement on USWC and Europe in 2019, we can solicit more space
support and expand more cargo.
(4) A competitive niche
Innovative Thinking
The international shipping market changes constantly and fast. It requires
creative thinking to make corresponding adjustments to overcome the challenges
for sustainability. Such as: assigning “line managers” and through the (KPI) Key
Performing Indicators system to monitor the performance and make necessary
adjustments to make the best use of corporate assets and create the maximum revenue
income.
Recognized Quality
Evergreen has been constantly improving the quality of service, in addition
to continuing to win the trust and affirmation from customers, but also sustained
affirmation and certification from international media and organizations:
(1) LOG-NET E-Commerce Excellence Award for 2017
(2) The Port Authority of NY & NJ - Green Ship Award 2018
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2018 Annual Report
(3) Port of Vancouver - 2017 Blue Circle Award

(4) New Jersey Smart Workplaces - Gold Award 2017
(5) Santa Barbara Region Vessel Reduction Incentive Program - Protecting Blue Whales
and Blue Skies Recognized Evergreen vessels
(6) Dollar Tree/Family Dollar - 2017 Ocean Carrier of the Year
(7) Home Depot - Ocean Carrier of the Year 2017
E-Commerce
Evergreen introduced the paperless Bill of Lading (B/L) and dispatch documentation
via its ShipmentLink digital portal, enhancing connectivity for exporters and importers
with banks, insurers, regulators, and customs and port authorities. Evergreen is the
first container carrier to integrate with Bolero’s proven electronic Bill of Lading (eBL)
solution.
These new services, provided in partnership with Bolero International, will lower
shippers’ costs while making data transfer more accurate, efficient, reliable and secure.
Accessed via the line’s established ShipmentLink portal, the ability to achieve paperless
data exchange among all parties concerned in a shipment will significantly simplify
supply chain linkages.
However the advantages of i-B/L do not end there. The paperless environment
allows reviews and alterations to be undertaken online and speeds up cash-flow by
avoiding the delays associated with traditional documents. Carriers can release goods
and banks can release payment to shippers far more quickly.
Evergreen is committed to offering a high-quality and reliable shipping information
system, to provide customers with an efficient, safe, and reliable e-commerce digital
platform to assist all parties in the trade lane to reduce costs and improve operational
efficiency. Evergreen's e-commerce platform also has a number of functions such as
schedule inquiry, container dynamic tracking, Bill of lading Management, volume
analysis, electronic data transmission exchange, total container weight verification
declaration and so on.
Eco-Friendliness
Evergreen Marine is committed to pollution prevention, energy conservation, and
greenhouse gas reduction, and to protect our planet in accordance with international
environmental protection conventions and environmental protection regulations. We
have strict standards and operational procedures for all environmental protection and
pollution prevention and control of ships sailing at sea, and we will use the latest
technology as soon as it is available so as to minimize the impact of container shipping
operations on marine life, port communities, and on humanity worldwide.
In order to provide quality services, it has always been the principle and goal to
safely deliver goods in ways that meet the needs of environmental protection, energy
145
conservation, reduction of greenhouse gas emissions and air pollution. Since 2007
to 2018, through a variety of operational management measures, emission reduction
strategies, optimized ship design to reduce ship energy consumption, and the continuous
introduction of a new generation of environmental protection vessels, Evergreen has
always made great efforts to keep our planet a sustainable environment.
The “Environmental Guardians” page on our website has been constantly
maintained so as to proactively share our management of emissions and treatment of
ballast and sludge. There are details for the latest environmental protection designs of
S-type, L-type, and B-type vessels and other green instruments for the easy reference
for our customers.
(5) Advantages, Disadvantages and Response Strategies for Future Development
Advantages
A. Shipping industry integration completed, the degree of concentration increased.
B. The alliance operates smoothly, and is cost-effective.
C. Emerging Southeast Asian markets are booming.
D. Blockchain technology helps upgrade the industry.
Disadvantages
A. Surging geopolitical conflicts and volatile fuel prices affect the investment deeply.
B. Ultra Large ships enter an intensive delivery period.
C. Trade disputes between the United States and other countries.
D. Cyber attacks persist.
Response strategies
A. Taking advantage of alliance networks to provide accounts with more port coverage,
and reduce transship costs.
B. To upgrade fleet deployment to reduce operating costs and improve competitiveness.
C. Continue to expand the market share, and improve the cargo mix.
D. Set up an Information Security Committee to regularly update policy, and review
the status of policy implementation.
2. Major usage and manufacturing process of main products

(1) Function of main products
Main Products Functions
Global transportation of standard and special containerized

Container Shipping
cargo.
(2) Manufacturing Process of Main Products

As a container shipping transportation service provider, our disclosed service string
and its adjustments provide the details for processing of our main products.
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2018 Annual Report
3. Status of Supply of Main Materials

Being a container shipping transportation service provider, we do not have raw
materials like manufacturers do, however we do have to use a substantial amount of
fuel for transport, which can be deemed as our main raw materials. Currently fuel cost
is one of the important operating costs. Except for being stably supplied by renowned
vendors at major ports, we also tactically adjust fueling port rotations depending on
favorable fuel prices in addition to strategic slow steaming measures for cost saving.
4. Main customers who account for over 10% of total sales in recent 2
years and their individual purchase amounts and share: None.
5. Production in the Last Two Years: None.
6. Shipments and Sales in the Last Two Years

Unit: NT$ Thousands
Year 2017 Year 2018
Revenue Revenue
Revenue from contracts

Marine freight income 135,358,310 with customers - Ship - 157,094,786
owners
Container manufacturing Revenue from contracts

1,659,315 7,150,737
income with customers - Terminal
Ship rental and slottage Revenue from contracts

1,545,894 2,894,849
income with customers - Agent
Commission income and Other - ship rental and

1,366,761 1,589,580
agency service income slottage income
Container income and Revenue from contracts

10,652,412 506,701
others with customers - Other
Total 150,582,692 Total 169,236,653
147
III. Human Resources
The year ended

Year 2017 2018
April 23, 2019
Staff 3,709 5,175 5,234

Number of
Seaman 1,105 1,413 1,339
Employees
Total 4,814 6,588 6,573
Average Age 39.60 38.10 38.80
Average Years of Service 11.27 10.36 10.41
Ph.D. 0.02% 0.02% 0.03%
Masters 6.63% 5.40% 5.57%
Education Bachelor’s Degree 63.98% 71.14% 71.64%
Senior High School 22.25% 17.64% 17.24%
Below Senior High School 7.12% 5.80% 5.52%
IV. Expenses for environmental protection

1. Company’s total expenses for environmental protection in 2018
In 2018, no major environmental pollution incidents occurred in our fleets, and there
were no losses or penalties incurred. Expenses were simply for routine maintenance of
equipment, and additional costs for use of low pollutant fuels. Expense details are listed
below:
(1) The cost of maintenance and parts for environmental protection equipment and SOx
Scrubbers amounted to USD 34,300,553.82.
(2) The cost for vessels using low-sulfur fuel for M/E, Generator Engines and Aux.
boiler while sailing in emission control areas to comply with IMO regulations &
CARB requirements of the US west coast amounted to USD 61,640,719.92.
(3) The cost for vessel M/E, Generators and Aux. Boilers using Marine Gas oil when
berthing at EU ports and using low-sulfur fuel oil while sailing in emission control
areas amounted to USD 25,217,719.00.
2. Environmental protection policies and measures

The Company has established an environmental protection policy based on caring
for the ocean, continuously upgrades shipboard equipment to reduce air pollution
emissions and manages its own fleets with requirements exceeding international
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2018 Annual Report
regulation. The Company is currently undertaking the following measures for

environmental protection:
(1) All ocean going vessels will use cleaner fuel (the Sulphur content shall not exceed
0.5% m/m) while they are in Taiwan’s international commercial port areas and the
territorial sea of Hong Kong and China taking effect from 1 Jan 2019.
(2) In compliance with the California Air Resources Board (CARB) regulations, fleet
vessels sailing through the West Coast of the U.S., within 200 nautical miles of the
California baseline, should use Marine Gas Oil for M/E, Generator Engines and
Aux. Boiler.
(3) All ocean going vessels entering the Emission Control Area, ECA (Baltic Sea area,
North Sea Area and English Channel, North American area) must have a Sulphur
content of fuel oil used on board ships shall not exceeding 0.1% m/m after 1 January
2015.
(4) The maximum allowable Sulphur content of fuel oil used by ships at berth in EU
ports shall not exceed 0.1% m/m after 1 January 2010.
(5) In line with the IMO Data Collection regulation, Evergreen had establish a
monitoring plan. All ships above 5,000 gross tonnage starting from January 1, 2019,
should collect and report fuel consumption annually, which should be verified.
(6) Evergreen Line has received recognition for its excellent performance in a voluntary
environmental and ecological protection program. The initiative was aimed at
reducing greenhouse gas emissions of vessels and avoiding whale collisions by
encouraging slow sailing speeds in California's Santa Barbara Channel region.
(7) Conduct strict audits and corrective action for the fleet and make preparation
beforehand in order to prevent deficiencies and pollution from occurring.
(8) Keep all environmental equipment on board in good condition for the crew to
operate smoothly.
(9) Continuously monitor the operating condition of the vessel’s main engine and
auxiliary machineries. Take necessary actions immediately for efficiently using the
fuel to reach the goal of energy conservation and carbon emission reduction.
(10) Maintain the validity of the statutory certificates such as IOPP, IAPP and ISPP for
all vessels.
(11) Continuously join the GARD Protection and Indemnity (GARD P&I) insurance.
(12) Provide the Vessel Certificate of Financial Responsibility (COFR) for all vessels
trading to the United States to undertake the responsibilities and obligations if oil
pollution occurs in US water.
(13) Carry out M/E turbocharger cut-out operation to cooperate with vessel’s slow
steaming in order to reduce fuel oil consumption and GHG emission.
(14) Pay close attention to the development of international regulations for
environmental protection. Complying with the new regulations allows the fleet to
149
meet the requirements for environmental protection in ports and around the world.
(15) North Atlantic Right Whale Seasonal Speed Restrictions are in effect. Restrictions
imposed by the NOAA require vessels to proceed at 10 knots or less in restricted
areas during specific times of the year (from Nov. to Apr.) in the Mid-Atlantic
and Southeast U.S. Seasonal Management Areas (SMAs) of the U.S. East Coast.
Vessels are allowed to operate at speeds greater than 10 knots if it is necessary to
maintain a safe maneuvering speed in areas where conditions severely restrict a
ship’s maneuverability. Any deviation from the speed restriction should be entered
in the logbook.
(16) ICommission AMP system and use shore power for all E -Type, S-Type and L-Type
vessels berthing in port of USLAX, USOKL. And joined the Cold Ironing running
berthing in port of CNXGA, CNSHG, CNNBO, CNXSM and CNYYT & CNXHK.
(17) All seafarers are given thorough environmental educations and training courses to
acquire correct environmental awareness and knowledge.
REMARKS:
(1) IOPP - International Oil Pollution Prevention
(2) IAPP - International Air Pollution Prevention
(3) ISPP - International Sewage Pollution Prevention
3. New international environmental protection regulations

(1) On January 1, 2019, the planned emission control areas in the China territorial
waters were mandated to use fuel oil with a sulfur content <0.5% m/m.
(2) The MEPC decided that after January 1, 2020, in addition to the other areas of
the world except the Emission Control Area (using 0.1% m/m sulfur content), the
maximum sulfur content of marine fuel shall not exceed 0.5% m/m.
(3) The annual emissions of CO2 from maritime transport account for about 2.8%
of global greenhouse gas emissions. The IMO proposes to incorporate increasing
marine emissions into greenhouse gas emission reduction policies, and implement
new energy efficiency design indicators at the 72nd meeting of MEPC. (EEDI)
requirements to reduce carbon emissions. The CO2 emission rate of ships targeting
international routes in 2030 is set to be at least 40% lower than the 2008 figure
and is expected to be reduced to 70% by 2050. The total emissions and the total
greenhouse gas emissions in 2050 need to be reduced by 50% compared to the 2008
value.
At its 69th Session, the MEPC Marine Environmental Protection Committee
approved the Global Ship Fuel Consumption Data Collection and revised the
MARPOL Convention Annex VI, which is the global ship fuel consumption data
collection. The information collected since 2019 will be reported to the flag State
after the end of each year. After verifying the data, the flag State will issue a
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2018 Annual Report
Declaration of Conformity to the vessel and submit the data to the IMO Ship Fuel
Consumption Database.
V. Labor Relations
1. Benefits for employees
Holiday Two days off a week.
Paid annual leave As specified in the Labor Standards Act.
Pension system As specified in the Labor Pension Statute.
Labor insurance, national health insurance, group accident insur-

ance better than that required by Labor Standards Act, medical
Insurance insurance covering hospitalization and injury for the employees
traveling abroad for business, group term life insurance with a
preferential rate.
Nourishing and healthy free lunch, overtime meals, and on-duty

Meals
meal at the canteen.
Medical consultations with professional physicians, workplace

Health care health promotion and management by professional nurses, and
free regular physical examinations.
Employees buying tickets for a domestic flight of UNI AIR or living

Recreational activities in a hotel of the Evergreen Group in Taiwan or overseas can enjoy
a preferential discount.
Regular and ad hoc educational training, professional seminars,

Education training workshops, and subsidies for foreign language training every
year.
Operating Performance bonus Annual bonus, employee compensation
Wedding subsidy/cash gift from supervisor, bereavement sub-

sidy/condolence payment from supervisor, injury or illness con-
Other subsidies dolence payment, emergency assistance, relocation subsidy for
overseas assignments, allowances for domestic assignments
away from home.
There are 24 clubs: basketball, tennis, softball, badminton, table

Clubs tennis, swimming, Taiji for health, yoga, mountain climbing, golf,
Latin aerobic exercises, etc.
151
2. Training for staff

(1) Internal Training:
The annual internal training plan is proposed by each department and is
implemented after approval. The subjects include ISO documentation, professional
knowledge, quality improvement, AEO certification, occupational safety & health,
corporate social responsibility, etc.
Total hours of training courses in 2018: 559 hours
(2) Professional Training:
A. According to laws and regulations, the colleagues from the Auditing Dept.,
Occupational Safety & Health Dept., Insurance & Claim Dept., Finance Div.
Finance Dept., and Kaohsiung Terminal Div. participated in training courses
organized by external training institutions.
B. In order to enhance the professional knowledge of damage prevention,
executives and managers from various departments participated in the Danger
Prevention Seminars organized by Evergreen International Corp.
C. In order to enhance the skills of international business negotiations, executives
and managers from the Logistics Div. and Operation Coordination Dept.
participated in B2B International Business Negotiation Workshops, which were
conducted by external professional consultants.
D. In order to strengthen stress resistance and emotion-processing skills, first-
line managers from various departments participated in the Stress and Emotion
Management Courses, which were conducted by external professional
consultants.
(3) New Manager Training:
A. New managers participated in the Performance Management & Appraisal
Interview Courses organized by Human Resources Dept.
B. New managers participated in various e-Learning courses recorded by relevant
departments. The subjects include personnel/finance/auditing administration,
information security and financial reports.
C. In order to enhance communication skills, new managers participated in the
Cross-Generational Communication Courses, which were conducted by external
professional consultants.
(4) Management-level Learning Programs:
In order to promote interdisciplinary learning, all executives and managers
participated in various e-Learning courses recorded by different professional units.
The subjects in year 2018 include financial reports, fleet environmental protection
policy, corporate governance and EU General Data Protection Regulation.
(5) Expatriate’s orientation:
Expatriates participated in the orientation programs before taking up their new
152
2018 Annual Report
posts in overseas affiliates, which were conducted by Human Resources Dept.

(6) Newcomer’s orientation:
Newcomers participated in the orientation programs before being distributed to
their respective units, which were conducted by Human Resources Dept.
(7) Occupational Safety and Health Training and Health Lectures
(8) Subsidies for learning foreign languages
(9) Subsidies for TOEIC test fee
(10) The statistics of the above 2-9 trainings are as follows
Total number of Total training hours in

Total amount of cost
participants year
1,980 10,240 NT$1,632,223
On-shore Training for Seafarers:
Number of Number of
Training course Days
periods participants
LEADERSHIP AND BRIDGE RESOURCE

2 5 11
MANAGEMENT
LEADERSHIP AND ENGINE ROOM

2 5 4
RESOURCE MANAGEMENT
THE OPERATIONAL USE OF ECDIS

2 5 13
TRAINING
SECURITY TRAINING FOR SEAFARERS

WITH DESIGNATED SECURITY DUTIES AND 12 2 192
SECURITY AWARENESS
TOKYO KEIKI ECDIS TYPE SPECIFIC

16 2 21
UPGRADE TRAINING (EC-8600)
JRC JAN-9201/7201 ECDIS TYPE SPECIFIC

14 1 82
TRAINING
THE PRE-BOARDING TRAINING COURSE

FOR DECK MANAGEMENT LEVEL 12 2 95
OFFICERS

13 2 156
FOR DECK OPERATION LEVEL OFFICERS
PRACTICAL NAVIGATION SAFETY

7 2 84
INTENSIVE TRAINING
153
Number of Number of
Training course Days
periods participants
D.G. CARGO COURSE RECURRENT

6 1 87
TRAINING
D.G. CARGO COURSE TRAINING 1 2 14

FOR ENGINE MANAGEMENT LEVEL 12 2 78
OFFICERS

12 3 68
FOR ENGINE OPERATION LEVEL OFFICERS
M/E REMOTE CONTROL SYSTEM TRAINING 9 3 38
MAN ME ENGINE CONTROL SYSTEM 11 5 53
MARINE ENVIRONMENT AWARENESS

14 2 266
TRAINING
MARINE ENVIRONMENT AWARENESS

32 2 100
TRAINING (FOREIGN CREW)
UK SHIP'S SAFETY OFFICER CBT TRAINING 3 1 3
MEDICAL CARE REFRESHER COURSE 2 3 28
MEDICAL CARE TRAINING 1 5 16
INTRODUCTION AND MAINTENANCE THE

( CARRIER,THERMO-KING,DAIKIN REEFER 10 2 59
CONTAINERS )
SHIPBOARD HIGH VOLTAGE TRAINING

6 1 31
(OPERATIONAL LEVEL)
SHIPBOARD HIGH VOLTAGE TRAINING

7 5 32
(MANAGEMENT LEVEL)
THE SHIP HANDLING AND SAFETY

MANAGEMENT PROFICIENCY CHECK 14 1 53
COURSE
MEDICAL FIRST AID REFRESHER 3 2 48
UK (MLC 2006) SHIP'S COOK TRAINING 1 2 7
Total 224 68 1,639
Total fees for training classes NT$5,841,429
154
2018 Annual Report
3. Pension plan
The Evergreen Marine Labor Pension Preparatory Fund Supervisory Committee
was formed in 1986. The “Employee Pension Regulations” were drawn up by the
Company and pension contributions are continuing to be made each month based on
the following criteria: 15% of salary for employees on the old system, and 9% of salary
for employees on the new system that chose to retain their years of service under the
old system. According to the pension regulations, the criteria for payment is two bases
which are given for each full year of service rendered. But for the rest of the years over
15 years, one base is given for each full year of service rendered. The total number of
bases shall be no more than 45. The retirement pension base is one month’s average
wage of the worker at the time when his or her retirement is approved.
Employees that opt for the new system introduced by the Labor Pension Statute
introduced on July 1, 2005, receive contributions equal to 6% of their monthly salary.
In addition to monthly contributions to the pension fund, we also check the balance
of the labor pension preparatory fund account to see if it is sufficient to meet all the
pension obligations from all employees that will meet the conditions for retirement in
the upcoming year. Any shortfalls are made up by the end of March in the following
year.
4. Labor Agreements: None.
5. Labor Disputes (as to the printing date)

There was one case of labor dispute raised in 2018. In 2018 and in 2019 as of the
date of this annual report, there has been no losses resulting from labor disputes.
6. Code of Conduct/Courtesy
As a leading container carrier, the Company consistently upholds attitudes of
integrity, transparency, and accountability while engaging in business activities.
The Company established the “Guidelines for the Adoption of Codes of Ethical
Conduct” in December 2014. The Guidelines are adopted for the purpose of
encouraging directors, supervisors, and managerial officers to act in line with ethical
standards, and to help interested parties better understand the ethical standards of the
company. To ensure implementation of the company’s philosophy and core values, all
employees are required to:
(1) Observe the company’s regulations and working manual as well as to act loyally,
responsibly and under supervisors’ orders, directions and supervision.
(2) Conduct themselves in an impartial, prudent and self-disciplined manner, protect the
company’s reputation, discard bad habits, and respect fellow staff members.
155
(3) Perform their duties and responsibilities, cooperate and coordinate with interrelated
departments to achieve goals set by the company.
(4) Commit to performing all services in a conscientious without any practices that
could be construed as bribery and/or corruption.
(5) Strictly Refrain from discriminating against any employee, contractor, or customer.
(6) Comply with any and all competition law regimes that are relevant to their countries
of operation.
7. Protection Measures for Safe Work Environment and Worker Safety

The company's fourth and fifth container centers in Kaohsiung have obtained
TOSHMS (CNS15506) and OHSAS18001 certification. The Occupational Safety and
Health Management Department of the organization has set up occupational safety and
health management personnel according to law, and implements the company's safety
and health management and operations supervision to promote the workplace. Safety
and prevention of occupational disasters, related operations are as follows:
(1) In accordance with the Occupational Safety and Health Management Policy,
the quarterly Occupational Safety and Health Committee meeting, provide
recommendations on the company's safety and health policy, and review, coordinate
and recommend safety and health related matters.
(2) Establish and publicize the company's applicable safety and health codes of practice
in accordance with the relevant regulations on occupational safety and health, and
regulate the implementation and compliance of all employees.
(3) According to the regulations on occupational safety and health, conduct safety and
health education and on job training for newcomers and in-service employees.
(4) In accordance with the regulations of the occupational safety law, formulate and
implement the "prevention of musculoskeletal diseases such as repetitive work",
"prevention of abnormal workload to incur disease", "prevention of physical or
mental abused by other people's illegal behaviors", and "workplace maternal health
protection" and other operations.
(5) Handle employee health management and health promotion.
(6) The office building has set up 24-hour security and has equipped entrance control
card access to ensure the company's property and personnel safety.
(7) Provide free physical examinations to employees and set up infirmaries. Doctors
and nursing staff provide employee for counseling on the result of health report.
(8) According to the provisions of the Fire Protection Law, firefighting and evacuation
education shall be conducted regularly for employees every half year.
156
2018 Annual Report
VI. Important Agreement

AGREEMENT THE PARTY DURATION CONTENT RESTRICTIONS
From: Sep. 04, 2009

Till: Unlimited
Slot Exchange YANG MING MARINE extensions; Contract EMC slot exchanges with
—
Agreement TRANSPORT CORP. termination subject YML. (Pan Asia Services)
to 60 days advance
notification.
From: Mar. 01, 2008

EMC slot charters from
Till: Feb. 28, 2009
FUJIAN FOREIGN Fujian Foreign Trade
Slot Charter Can be extended.
TRADE CENTRE SHIP- Centre Shipping Co. —
Agreement Contract termination
PING CO. (Fuzhou- Kaohsiung Ser-
subject to 90 days
vice)
advance notification.
From: Sep. 27, 2010

Till: Sep. 26, 2011
Slot Charter CHINA UNITED LINES Can be extended.
CUL. (Shanghai, Ningbo/ —
Agreement LTD. Contract termination
Taiwan Service).
subject to 90 days
From: Sep. 01, 2002

Till: Aug. 31, 2003 Operated by EMC and
Vessel Sharing Can be extended. . WHL jointly.
WAN HAI LINES LTD. —
Agreement Contract termination (Japan-Taiwan/Hong Kong
subject to 90 days Service)
From: Sep. 12, 2008

Till: Set. 11, 2009 Operated by EMC and
Vessel Sharing Can be extended. WHL jointly.
Agreement Contract termination (Japan/Taiwan/Philippines
From: Apr. 30, 2006

1. OOCL (ASIA PACIFIC) Till: Apr. 29, 2007 Operated by EMC, OOCL,
Vessel Sharing LTD. Can be extended. and YM (UK) Ltd. jointly.
—
Agreement 2. YANGMING (UK) Contract termination (Taiwan/Hong Kong/
LTD. subject to 90 days Vietnam Service)
From: Apr. 30, 2006

Operated by EMC, WHL
Till: Apr. 29, 2007
1. WAN HAI LINES LTD. and HLCL jointly.
Vessel Sharing Can be extended.
2. HAPAG-LLOYD (Taiwan/Mainland/ —
CONTAINER LINE Singapore/Malaysia/India
subject to 90 days
Service)
157
From: Feb. 22, 2009

Till: Aug. 23, 2009
Slot Exchange Can be extended. EMC slot exchanges with
Agreement Contract termination WHL. (Pan-Asia Service)
subject to 45 days
From: Nov. 29, 2013 Operated by EMC,

1. COSCO CONTAINER
Till: May. 28, 2014 COSCONSEA and SIMAT-
LINES SOUTH EAST
Vessel Sharing Can be extended. ECH jointly.
ASIA PTE. LTD. —
Agreement Contract termination (South East Asia-Persian
2. SIMATECH
subject to 60 days Gulf-India Pakistan Ser-
SHIPPING PTE. LTD.
advance notification. vice)
From: Jul. 12, 2015

EMC slot exchanges with
Till: Jan. 12, 2016
CNC.
Slot Exchange Can be extended.
CNC LINE (Taiwan-Thailand/ —
Singapore-Japan,
subject to 60 days
Malaysia-Japan Service)
From: Nov. 25, 2015

Till: May. 25, 2016
CNC.
CNC LINE (Korea-Taiwan-Vietnam/ —
North East Asia - South
subject to 60 days
East Asia Service)
1. SIMATECH
SHIPPING PTE LTD From: Jun. 18, 2017
Operated by EMC, SIMAT-
2. K LINE Till: Mar. 18, 2018
ECH, K Line, Yang Ming
Vessel Sharing 3. YANG MING LINES Can be extended.
Lines, —
Agreement 4. HAPAG-LLOYD Contract termination
Hapag-Lloyd. and PIL.
5. PACIFIC subject to 90 days
(North China-India Service)
INTERNATIONAL advance notification.
LINES PTE. LTD
From: Sep. 01, 2014

Till: Feb. 28, 2015
Slot Charter Can be extended.
WAN HAI LINES LTD. WHL. (Korea - South East —
Asia Service)
subject to 60 days
158
2018 Annual Report
From: Jun 07, 2013

1. YANG MING LINES
Till: Jun. 07, 2014 Operated by EMC, YML,
2. SINOTRANS
Vessel Sharing Can be extended. SINOTRANS and TSL
CONTAINER LINES —
Agreement Contract termination jointly. (China-Australia
CO., LTD.
3. TS LINES
From: Jul. 08, 2015 EMC slot exchanges with

Till: Jan. 08, 2016 SKR.
Slot Exchange SINOKOR MERCHANT Can be extended. (North East Asia - South
—
Agreement MARINE CO., LTD. Contract termination East Asia/Korea-China-
subject to 60 days Indonesia/Korea-Vietnam-
advance notification. Thailand Service)

From: Mar. 27, 2016 X-Press.
Till: Sep. 27, 2016 (South China-Singapore-
Slot Exchange Can be extended. Malaysia/Singapore-Bang-
X-Press —
Agreement Contract termination kok/Kaohsiung-Cebu/
subject to 30 days Vietnam-Singapore-
advance notification. Malaysia/Kaohsiung-
Manila Service )
From: May. 01, 2016

Till: Nov. 01, 2016
TSL.
T.S. LINE CO., LTD. (Taiwan-Shanghai/ —
Vietnam-Singapore-
subject to 60 days
Malaysia Service )
From: Sep. 04, 2016

Till: Dec. 04, 2016
MCC.
Slot Exchange MCC TRANSPORT Can be extended.
(Taiwan-Shanghai/Viet- —
Agreement SINGAPORE PTE. LTD. Contract termination
nam-Malaysia-Indonesia
subject to 30 days
Service)
From: Aug. 28, 2017

1. COSCONSEA Operated by EMC,
Till: Feb. 27, 2018
2. WAN HAI LINES LTD. CONCONSEA, WHL & PIL
Vessel Sharing Can be extended.
3. PACIFIC jointly. —
INTERNATIONAL (North China-Pakistan
subject to 60 days
LINES (PTE) LTD. Service)
159
From: Sep. 04, 2016

Till: Dec. 04, 2016
K Line.
K LINE (Central China-South —
China-Pakistan/North
subject to 60 days
China-Pakistan Service)
From: Sep. 18, 2017

Till: Dec. 16, 2017
OOCL.
OOCL (Central China-South —
China-Pakistan/North
subject to 30 days
China-Pakistan Service)
From: Apr. 25, 2017

Till: Nov. 25, 2017
COSCO.
COSCO (North China/China-Thai- —
land/ Taiwan-Indonesia
subject to 30 days
Service)
From: May. 21, 2017

Operated by EMC, APL,
1. APL Till: Mar.21, 2018
K-LINE, YANG MING and
Vessel Sharing 2. K-LINE Can be extended.
HAPAG LLOYD jointly. —
Agreement 3. YANG MING LINES Contract termination
(North East Asia - Australia
4. HAPAG LLOYD subject to 90 days
Service)
From: Sep. 18, 2017

Till: Dec. 18, 2017
SITC.
Slot Exchange SITC CONTAINER Can be extended.
(China-Indonesia/ China- —
Agreement LINES CO Contract termination
Vietnam-Indonesia Express
subject to 30 days
Service)
From: Dec. 20, 2017

Till: Mar. 30, 2018 EMC slot exchanges with
Slot Exchange MCC TRANSPORT Can be extended. MCC.
—
Agreement SINGAPORE PTE LTD Contract termination (Indonesia-Japan/Japan-
subject to 30 days Thailand Express Service)
From: Nov. 23, 2017

Till: Feb. 25, 2018
EMC solt charters from SI-
Slot Charter SIMATECH SHIPPING Can be extended.
MATECH. (Far East - East —
Agreement t PTE. LTD. Contract termination
India Service)
subject to 30 days
160
2018 Annual Report
From: Dec. 13, 2017

Till: Mar. 13, 2018 EMC solt charters from
Slot Charter BENGAL TIGER LINE Can be extended. BTL.
—
Agreement PTE LTD. Contract termination (South East Asia - East
subject to 30 days India Service)
From: May. 20, 2017

Till: Mar. 20, 2018
SINOTRANS SNL.
CONTAINER LINES (North China-Australia/ —
CO., LTD. South China-Australia
subject to 60 days
Express Service)
Operated by OCEAN Alli-

Vessel 1. CMA CGM ance.
Sharing and 2. COSCO CONTAINER From: Apr. 01, 2017 (F.E.-EUR/F.E.-MED/F.E.-
—
Slot Exchange LINE Till: Mar. 31, 2022 USWC/F.E.-USEC/EUR-
Agreement 3. OOCL USEC/F.E.-GULF/F.E.-
RSEA Services)
From: Apr. 01, 2017

Till: Mar. 31, 2019 EMC slot charters from
Slot Charter NIPPON YUSEN
Contract termination NYK. —
Agreement KAISHA
subject to 90 days (Japan/USWC Service)
From: Jan. 20, 2017

1. CMA CGM Operated by ELJSA &
Till: Dec. 20, 2018
Vessel Sharing 2. COSCO CONTAINER CMA CGM & COSCO &
Contract termination —
Agreement LINE YML.
subject to 90 days
3. YANG MING LINE (F.E./S. America Service)
From: Jan. 19, 2017

Till: Dec. 19, 2018 EMC slot exchanges with
Slot Exchange NIPPON YUSEN
Contract termination NYK. —
Agreement KAISHA
subject to 90 days (F.E./S. America Service)
1. COSCO CONTAINER
LINE
From: Sep. 29, 2014
2. KAWASAKI KISEN
Till: Unlimited Operated by EMC, COS-
KAISHA LTD.
Vessel Sharing extensions. Contract CO, MOL, PIL and KLINE
3. MITSUI O.S.K. LINES —
Agreement termination subject jointly.
LTD.
to 90 days advance (F.E./S. Africa Service)
4. PACIFIC
notification.
INTERNATIONAL
LINES
161
From: Dec. 26, 2015

Till: Unlimited
Operated by EMC, COS-
Vessel Sharing 1. COSCO extensions. Contract
CO and YML. —
Agreement 2. YANG MING LINE termination subject
(F.E./S. USWC Service)
to 3 months advance
notification.
1. COSCO CONTAINER
From: Dec. 25, 2015
LINES
Till: Unlimited Operated by EMC, COS-
2. PACIFIC
Vessel Sharing extensions. Contract CO, PACIFIC, WHL and
INTERNATIONAL —
Agreement termination subject YML.
LINES
to 3 months advance (F.E./S. USWC Service)
3. WAN HAI LINES
notification.
4. YANG MING LINES
Charter Sep. 01, 2013- Chartering 13 freighters

GESA —
contract Aug. 31, 2021 from GESA for operation.
Charter Jan. 01, 2003- Chartering 2 freighters

EITC —
contract Jan. 01, 2022 from EITC for operation.
Chartering a freighter from

Charter IS CONTAINER PTE Apr. 26, 2017-
IS CONTAINER PTE LTD —
contract LTD Feb. 26, 2027
for operation.
Chartering a freighter from

Charter IS CONTAINER PTE Aug. 11, 2017-
IS CONTAINER PTE LTD —
contract LTD Jun. 12, 2027
for operation.
Charter Apr. 24, 2015- Freighter owned by EMC

CUL —
contract Dec. 31, 2019 leased to CUL.
162
6 Financial Information 2018 Annual Report
I. Five- Year Financial Summary

1. Consolidated Condensed Balance Sheet
Unit: NT$ Thousands
Year Financial Summary for The Last Five Years As of

March 31,
Item 2014 2015 2016 2017 2018 2019 (Note)
Current assets 57,268,959 52,171,999 53,977,007 60,951,228 67,898,508 64,264,630
Property, plant and equipment 99,524,289 107,619,180 99,470,430 97,687,454 117,219,185 102,991,874
Intangible assets 22,578 22,371 121,341 159,667 2,266,526 2,199,342
Other assets 32,119,181 32,838,657 36,184,986 41,281,548 41,627,736 122,114,316
Total assets 188,935,007 192,652,207 189,753,764 200,079,897 229,011,955 291,570,162
Before distribution 40,653,423 39,356,167 42,031,169 44,760,401 50,061,985 57,124,254

Current liabilities
After distribution 41,001,181 - - 45,562,872 - -
Non-current liabilities 83,445,251 92,001,438 94,084,094 88,630,706 107,982,134 162,847,063

Total liabilities
Equity attributable to owners of the parent 60,880,785 58,001,047 50,987,493 63,398,554 66,844,230 67,567,858
Common stock 34,775,802 35,123,560 35,123,560 40,123,560 45,129,738 45,129,738
Capital Surplus 7,292,458 7,986,633 7,989,014 10,838,075 11,059,145 11,058,716

Retained earnings
Other equity interest 1,627,440 3,095,787 2,889,888 682,313 1,193,156 1,357,641
Treasury shares - - - - - -
Non-controlling interest 3,955,548 3,293,555 2,651,008 3,290,236 4,123,606 4,030,987

Total equity
Note: The consolidated financial statements as of March 31, 2019 have been reviewed by independent
auditors.
163
6 Financial Information
2. Consolidated Condensed Statement of Comprehensive Income

Unit: NT$ Thousands
Year Financial Summary for The Last Five Years As of

March 31,
Item 2014 2015 2016 2017 2018 2019 (Note)
Operating revenue 144,284,374 133,813,687 124,467,608 150,582,692 169,236,653 45,697,052
Gross Profit 7,345,227 1,540,315 (3,494,113) 10,874,287 7,470,868 3,424,758
Operating income (loss) 3,758,015 (3,847,026) (7,848,262) 4,817,470 926,217 1,303,077
Non-operating income and expenses (546,272) (835,470) (960,721) 2,630,079 269,187 (594,548)
Profit (loss) before income tax 3,211,743 (4,682,496) (8,808,983) 7,447,549 1,195,404 708,529
Profit (loss) from continuing operations 2,035,049 (4,739,297) (8,565,311) 6,661,621 78,501 463,906
Profit (loss) from discontinued operation - - - - - -
Profit (loss) for the period 2,035,049 (4,739,297) (8,565,311) 6,661,621 78,501 463,906
Other comprehensive income (loss), net of

2,594,253 851,149 906,829 (2,971,907) 575,603 167,532
income tax
Total comprehensive income (loss) 4,629,302 (3,888,148) (7,658,482) 3,689,714 654,104 631,438
Profit (loss), attributable to owners of the

1,155,924 (4,408,079) (6,607,986) 7,005,171 293,919 559,572
parent
Profit (loss), attributable to non-controlling

879,125 (331,218) (1,957,325) (343,550) (215,418) (95,666)
interest
Comprehensive income (loss), attributable

3,601,295 (3,226,155) (7,015,935) 4,562,000 1,031,164 724,057
to owners of the parent
Comprehensive income (loss), attributable

1,028,007 (661,993) (642,547) (872,286) (377,060) (92,619)
to non-controlling interests
Earnings per share (in dollars) 0.33 (1.26) (1.88) 1.88 0.07 0.12
auditors.
164
2018 Annual Report
3. Condensed Balance Sheet

Unit: NT$ Thousands
Year Financial Summary for The Last Five Years
Item 2014 2015 2016 2017 2018
Current assets 20,382,555 24,394,141 26,797,737 29,795,801 30,035,812
Property, plant and equipment 20,522,164 27,982,312 26,055,383 27,118,687 35,045,526
Intangible assets 9,705 10,080 52,203 39,071 28,730
Other assets 63,359,304 58,542,582 53,141,674 63,841,016 62,818,147
Total assets 104,273,728 110,929,115 106,046,997 120,794,575 127,928,215
Before distribution 13,740,529 15,261,971 14,761,758 15,220,244 15,248,630

Current liabilities
After distribution 14,088,287 - - 16,022,175 -
Non-current liabilities 29,652,414 37,666,097 40,297,746 42,175,777 45,835,355

Total liabilities
Common stock 34,775,802 35,123,560 35,123,560 40,123,560 45,129,738
Capital surplus 7,292,458 7,986,633 7,989,014 10,838,075 11,059,145

Retained earnings
Other equity interest 1,627,440 3,095,787 2,889,888 682,313 1,193,156
Treasury shares - - - - -

Total equity
165
4. Condensed Statement of Comprehensive Income

Unit: NT$ Thousands
Year Financial Summary for The Last Five Years
Item 2014 2015 2016 2017 2018
Operating revenue 26,151,838 25,134,073 23,060,494 28,897,616 33,994,571
Gross Profit 3,175,924 1,932,085 910,018 2,011,325 1,481,708
Operating income (loss) 3,589,338 469,199 (764,840) 232,667 (418,690)
Non-operating income and expenses (1,668,545) (5,813,782) (6,297,750) 6,985,241 928,194
Profit (loss) before income tax 1,920,793 (4,714,583) (7,062,590) 7,217,908 509,504
Profit (loss) from continuing operations 1,155,924 (4,408,079) (6,607,986) 7,005,171 293,919
Profit (loss) from discontinued operation - - - - -
Profit (loss) for the year 1,155,924 (4,408,079) (6,607,986) 7,005,171 293,919
Other comprehensive income, net of

2,445,371 1,181,924 (407,949) (2,443,171) 732,511
income tax
Total comprehensive income 3,601,295 (3,226,155) (7,015,935) 4,562,000 1,026,430
Earnings per share (in dollars) 0.33 (1.26) (1.88) 1.88 0.07
5. Auditors’ Opinions from 2014 to 2018

Year Accounting Firm CPA Audit Opinion
Lee, Hsiu-Ling
2018 PricewaterhouseCoopers, Taiwan An unqualified opinion
Chih, Ping-Chiun
Lai, Chung-His
Chih, Ping-Chiun
Lai, Chung-His
Chih, Ping-Chiun
Lai, Chung-His An unqualified opinion with explanatory

2015 PricewaterhouseCoopers, Taiwan
Chih, Ping-Chiun paragraph
Lai, Chung-His An unqualified opinion with explanatory

2014 PricewaterhouseCoopers, Taiwan
Chih, Ping-Chiun paragraph
166
2018 Annual Report
II. Five- Year Financial Analysis

1. Consolidated Financial Analysis
As of
Year
2014 2015 2016 2017 2018 March 31,
Item
2019 (Note)
Financial structure (%)

Debt ratio 65.68 68.18 71.73 66.67 69.01 75.44
Long-term funds to property, plant
148.99 142.44 148.51 159.00 152.66 227.64
and equipment
Solvency (%)
Current ratio 140.87 132.56 128.42 136.17 135.63 112.50
Quick ratio 127.35 123.12 118.34 124.33 121.80 101.88
Times interest earned (times) 6.95 (3.75) (6.07) 6.39 1.64 1.53
Operating performance
Receivable turnover (times) 10.30 10.19 10.32 11.42 10.66 2.77
Average collection days 35 36 35 32 34 32
Inventory turnover (times) - - - - - -
Accounts payable turnover (times) 9.78 9.48 9.94 9.81 9.08 2.23
Average Inventory turnover days - - - - - -
Property, plant and equipment
1.64 1.29 1.20 1.53 1.57 0.42
turnover (times)
Total assets turnover (times) 0.79 0.70 0.65 0.77 0.79 0.18
Profitability
Return on total assets (%) 1.36 (2.06) (3.94) 4.01 0.74 0.59
Return on total equity (%) 3.26 (7.51) (14.90) 11.07 0.11 0.65
Pre-tax income to paid-in capital (%) 9.24 (13.33) (25.08) 18.56 2.65 1.57
Profit ratio (%) 1.41 (3.54) (6.88) 4.42 0.05 1.02
Earnings per share (NT$) 0.33 (1.26) (1.88) 1.88 0.07 0.12
Cash flow (%)

Cash flow ratio 27.54 13.26 (1.83) 25.00 6.08 5.03
Cash flow adequacy ratio 68.43 44.45 73.34 136.2 127.32 107.94
Cash flow reinvestment ratio 5.56 2.28 (0.36) 5.05 0.88 0.97
167
As of
Year
2014 2015 2016 2017 2018 March 31,
Item
2019 (Note)
Leverage
Operating leverage 4.20 (2.76) (0.63) 3.93 17.19 6.29
Financial leverage 1.17 0.80 0.86 1.40 (0.97) (41.23)
Analysis of financial ratio differences for the last two years. (Not required if the difference does not
exceed 20%)
1. Since the profit before income tax the profit for the year both decreased, the related profitability
ratios were lower than last year.
2. Compared with last year, the abovestated cash flow related ratios declined since the net cash
flows from operating activities of 2018 decreased as well.
3. The fluctuation of the leverage ratios stemmed from the decrease of the gross profit.
auditors.
2. Non-Consolidated Financial Analysis
Year
2014 2015 2016 2017 2018
Item
Financial structure (%)

Debt ratio 41.61 47.71 51.91 47.51 47.74
Long-term funds to property, plant and
441.14 341.88 350.35 389.3 321.52
equipment
Solvency (%)
Current ratio 148.33 159.83 181.53 195.76 196.97
Quick ratio 142.61 155.50 177.51 189.75 189.35
Times interest earned (times) 505.92 (804.44) (1048.67) 1237.22 174.31
Operating performance
Receivable turnover (times) 13.27 12.07 11.2 10.87 9.55
Average collection days 28 30 33 34 38
Inventory turnover (times) - - - - -
Accounts payable turnover (times) 10.29 9.96 9.07 8.63 7.96
Average Inventory turnover days - - - - -
168
2018 Annual Report
Year
2014 2015 2016 2017 2018
Item
1.51 1.03 0.85 1.08 1.09
turnover (times)
Total assets turnover (times) 0.25 0.23 0.21 0.25 0.27
Profitability
Return on total assets (%) 1.52 (3.69) (5.62) 6.64 0.67
Return on total equity (%) 1.95 (7.41) (12.12) 12.24 0.45
Pre-tax income to paid-in capital (%) 5.52 (13.42) (20.10) 17.98 1.12
Profit ratio (%) 4.42 (17.53) (28.65) 24.24 0.86
Earnings per share (NT$) 0.33 (1.26) (1.88) 1.88 0.07
Cash flow (%)

Cash flow ratio 22.97 2.20 4.59 16.85 5.55
Cash flow adequacy ratio 81.88 83.48 258.89 183.38 100.05
Cash flow reinvestment ratio 3.24 (0.01) 0.68 2.24 0.03
Leverage
Operating leverage 1.37 7.66 (3.29) 15.58 (12.88)
Financial leverage 1.15 (9.01) 0.55 (0.57) 0.37
Analysis of financial ratio differences for the last two years. (Not required if the difference does not
exceed 20%)
1. Times interest earned ratio and profitability decrease due to the net income decrease than last
year.
2. Cash flow ratio and cash flow adequacy ratio decrease due to the cash provided by operating
activities decrease.
3. Leverage decreases due to operating income decrease than last year.
1. Financial structure
(1) Debt ratio = Total liabilities / Total assets
(2) Long-term funds to property, plant and equipment = (Shareholders’ equity + long-term
liabilities) / Net property, plant and equipment
2. Solvency
(1) Current ratio = Current assets / Current liabilities
(2) Quick ratio = (Current assets - Inventories - Prepaid expenses) / Current liabilities
(3) Times interest earned = Earnings before interest and taxes / Interest expenses
169
3. Operating performance
(1) Receivable turnover = Net sales / Average account receivables
(2) Average collection days = 365 / Receivable turnover
(3) Inventory turnover = Cost of sales / Average inventory
(4) Accounts payable turnover = Cost of sales / Average accounts payable
(5) Average inventory turnover days = 365 / Average inventory turnover
(6) Property, plant and equipment turnover = Net Sales / Average net property, plant and
equipment
(7) Total assets turnover = Net sales / Average total assets
4. Profitability
(1) Return on total assets = (Net income + Interest expenses * (1 - Effective tax rate)) /
Average total assets
(2) Return on total equity = Net income / Average shareholders’ equity
(3) Net margin = Net income / Net sales
(4) Earnings per share = (Net income - Preferred stock dividend) / Weighted average number
of shares outstanding
5. Cash flow
(1) Cash flow ratio = Net cash provided by operating activities / Current liabilities
(2) Cash flow adequacy ratio = Five-year sum of cash from operations / Five-year sum of
capital expenditures, inventory additions, and cash dividend
(3) Cash flow reinvestment ratio = (Cash provided by operating activities - Cash dividends) /
(Gross fixed assets + Long-term investments + Other assets + Working capital)
6. Leverage
(1) Operating leverage = (Net sales - Variable cost) / Operating income
(2) Financial leverage = Operating income / (Operating income - Interest expenses)
III. The Company should disclose the financial impact to the Company if the
Company and its affiliated companies have incurred any financial or cash flow
difficulties in 2018 and as of the date of this Annual Report: None.
170
2018 Annual Report
IV. Audit committee’s Review Report
Audit committee’s Review Report
To: 2019 Annual General Shareholders’ Meeting

EVERGREEN MARINE CORPORATION (TAIWAN) LTD.
The Board of Directors has prepared the Company’s 2018 business report, financial report, and
proposal for distribution of earnings. The CPA firm of PricewaterhouseCoopers, Taiwan has audited
the financial report and issued the audit report. The above business report, financial report, and
proposal for distribution of earnings have been reviewed and determined to be correct and accurate
by the Audit Committee members of EVERGREEN MARINE CORPORATION (TAIWAN) LTD.
In accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company
Act, we hereby submit this report.
Convener of the Audit committee: Li, Chang-Chou
March 22,2019
171
V. Consolidated Financial Statements and Report of Independent Accountants
Representation Letter
In connection with the Consolidated Financial Statements of Affiliated Enterprises of EVERGREEN

MARINE CORPORATION (TAIWAN) LTD. (the “Consolidated FS of the Affiliates”), we represent to
you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the
year ended December 31, 2018 in accordance with the “Criteria Governing Preparation of Affiliation
Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises”
are the same as those required to be included in the Consolidated Financial Statements of EVERGREEN
MARINE CORPORATION (TAIWAN) LTD. and its subsidiaries (the “Consolidated FS of the Group”)
in accordance with International Financial Reporting Standard 10, as well as that, the information
required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the
Group. Consequently, EVERGREEN MARINE CORPORATION (TAIWAN) LTD. does not prepare a
separate set of Consolidated FS of Affiliates.
Very truly yours,

By
CHENG-YUNG CHANG, Chairman

March 22, 2019
172
~1~
2018 Annual Report
REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE
To the Board of Directors and Shareholders of Evergreen Marine Corporation (Taiwan) Ltd.
Introduction
We have audited the accompanying consolidated balance sheets of Evergreen Marine Corporation
(Taiwan) Ltd. (the“ Company”) and its subsidiaries (collectively referred herein as the “Group”) as of
December 31, 2018 and 2017, and the related consolidated statements of comprehensive income, of
changes in equity and of cash flows for the years then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, based on our audits and the reports of other independent accountants (please refer to
Other Matter section of the report), the accompanying consolidated financial statements present fairly,
in all material respects, the financial position of the Group as of December 31, 2018 and 2017, and its
financial performance and cash flows for the years then ended in accordance with the “Regulations
Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial
Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations
as endorsed by the Financial Supervisory Commission.
Basis for opinion

We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of
Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the
Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the Code of Professional Ethics for Certified Public
Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical
responsibilities in accordance with the Code. We believe that the audit evidence we have obtained and
the reports of other independent accountants are sufficient and appropriate to provide a basis for our
opinion.
~2~
173
Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole and, in forming our opinion
thereon, we do not provide a separate opinion on these matters.
Key audit matters for the Group’s consolidated financial statements of the current period are stated as
follows:
Accuracy and cut-off of freight revenue

Description
Please refer to Note 4(31) for accounting policies on revenue recognition, Note 5(2) for uncertainty of
accounting estimates and assumptions applied on revenue recognition, and Note 6(21) for details of sales
revenue.
Evergreen Marine Corporation (Taiwan) Ltd. primarily engages in global container shipping service
covering ocean-going and near-sea shipping line, shipping agency business as well as container freight
station business. In 2018, freight revenue from contracts with customers was NT$ 153,056,483 thousand,
representing 90.44% of operating revenue. Since ocean-going shipping often lasts for several days,
voyages are sometimes completed after the date of balance sheet. Also, demands for freight are
consistently sent by forwarders during voyage. Due to the factors mentioned above, freight revenue is
recognized under the percentage-of-completion method for each vessel during the reporting period.
Despite the Group conducting business worldwide, its transactions are all in small amounts, whereas the
freight rate is subject to fluctuation caused by cargo loading rate as well as market competition.
Worldwide shipping agencies use a system to record the transactions by entering data including shipping
departure, destination, counterparty, transit time, shipping amounts, and freight price for the Group.
Therefore, management could recognize freight revenue in accordance with the data on bill of lading
reports generated from the system, accompanied by estimation made from past experience and current
cargo loading conditions the revenue that would flow in, and calculate the revenue under the percentage-
of-completion method. As the process of recording transactions, communicating with agencies, and
maintaining the system are done manually, and the estimation of freight revenue are subject to
management’s judgement, therefore freight revenue involves high uncertainty and is material to the
financial statements. Given the conditions mentioned above, we consider the accuracy of freight revenue
~3~
174
2018 Annual Report
and the appropriate use of cut-off by the Group and its investee companies as a key audit matter.
How our audit addressed the matter

Our key audit procedures performed in respect of the above key audit matter included the following:
1. Obtained an understanding of the operation and industry of the Group to assess the reasonableness
of policies and procedures on revenue recognition, and confirmed whether it is appropriate to the
financial statements.
2. Obtained an understanding of the procedures of revenue recognition from booking, picking, billing
to receiving. Assessed and tested relevant internal controls, including checking freight items and
amounts of delivery information against the approved contracts and booking list. In addition,
recalculated the accuracy of freight revenue, and ensured its consistency with the bill of lading report.
3. Obtained the estimated freight income report for vessels underway as of balance sheets date, and
inquired with management for the reasonableness of judgement. In addition, checked historical
freight revenue for total voyage under each individual vessel, along with comparing with current
cargo loading condition as well as actual revenue received after period end to ensure the
reasonableness of revenue assumptions.
4. Confirmed the completeness of vessels underway for the reporting period, including tracking the
movements of shipments on the internet to ensure the vessels that depart before period end have been
taken into consideration in the freight revenue calculation.
5. Verified accuracy of data used in calculating percentage of completion under each voyage, including
selecting samples and check whether total shipping days shown on the Company’s website are in
agreement with cruise timetable as well as recalculating shipping days (days between departure and
balance sheet date), in order to examine the soundness of percentage applied.
Impairment of property, plant and equipment

Description
Please refer to Note 4(16) for accounting policies on property, plant and equipment, Note 5(2) for
uncertainty of accounting estimates and assumptions applied on impairment of property, plant and
equipment, and Note 6(8) for details of property, plant and equipment.
As of December 31, 2018, property, plant and equipment amounted to NT$ 117,219,185 thousand,
constituting 51.18% of total assets, and ship equipment, transport equipment and cargo handling
equipment amounted to NT$ 95,517,451 thousand, accounting for approximately 81.49% of total
~4~
175
property, plant and equipment. As new ships have been built and put into operation by many carriers
around the world, market supply has exceeded demand. Therefore, the market imbalance led to price
competition, resulting in unstable profitability for the industry and raising the risk of impairment arising
from main operating ship equipment, transport equipment and cargo handling equipment. The valuation
of impairment and recoverable amounts are evaluated by the Group using the present value of the future
cash flows expected to be derived from an asset or cash-generating unit compared to the book value.
The main assumptions of discount rates used in recoverable amounts, and expected operating revenue
growth rates, gross profit, operating profit rates, capital expenditures and discount rates used in future
cash flow estimates are subject to management’s judgement and involve high uncertainty, and the
estimated results are material to the consolidated financial statements. Given the conditions mentioned
above, we consider the impairment assessment of ship equipment, transport equipment and cargo
handling equipment in the property, plant and equipment under the Group and its investee companies as
a key audit matter.

1. Obtained an understanding and assessed the relevant policies, internal controls and process applied
to valuation of asset impairments.
2. Interviewed with management regarding the impairment test report, and assessed the reasonableness
of discount rates and the reasonableness of operating revenue, gross profit, operating profit rate,
growth rates and capital expenditure that management used in estimating future cash flows by
checking actual performance under past operating plans and comparing the performance with
industry forecast to evaluate the intention and capability of management.
3. Checked the parameters of the valuation model and recalculated the valuation model for accuracy.
Significant transaction
Description
Please refer to Note 4(32) for accounting policies on business combination and Note 6(31) for details of
business combination.
The subsidiary, Evergreen Marine (Hong Kong) Ltd., acquired 100% equity interest of Hatsu Marine
(Hong Kong) Limited for a cash consideration of $3,265,341 thousand in December 2018. The fair value
of identifiable net assets, inclusive of intangible asset - customer relationship, amounted to $ 3,274,188
~5~
176
2018 Annual Report
thousand and gain from bargain purchase amounted to $ 8,847 thousand. The merger was classified as a
significant transaction during the reporting period. The valuation and measurement of the fair value of
identifiable net assets based on management’s estimation and the Purchase Price Allocation report issued
by the independent expert appraisers involved critical judgements and estimates so as to be material to
the financial statements. Given the conditions mentioned above, we consider the allocation of purchase
price as a key audit matter.

1. Understood and assessed the purpose of the acquisition, relevant internal controls and process
applied to the accounting treatments.
2. Understood and assessed the valuation models that management used in measuring the fair value
of the acquisition and the reasonableness of major assumption, inclusive of discount rate and
operating revenue, gross profit and operating profit rate that management used in estimating future
cash flows.
3. Obtained an understanding of the acquisition price allocation and procedures including acquiring
the measurement and disclosure of relevant policy and evaluation procedures relating to acquiree’s
identifiable net assets and reviewed the contract and the Purchase Price Allocation report of the
acquisition. In addition, examined the date, the consideration and the fair value of acquiree’s
identifiable net assets of the acquisition determined by management to ensure the accuracy of the
accounting treatment.
Other matter – Report of other independent accountants

We did not audit the financial statements of all the consolidated subsidiaries. Those statements and the
information disclosed in Note 13 were performed by other independent accountants whose reports
thereon have been furnished to us, and our audit expressed herein is based solely on the reports of the
other independent accountants. The statements reflect that total assets in these subsidiaries amounted to
NT$52,567,030 thousand and NT$53,765,827 thousand, constituting 22.95% and 26.87% of the total
consolidated assets as of December 31, 2018, and 2017, respectively. Net operating revenues in the
subsidiaries amounted to NT$50,179,774 thousand and NT$55,681,727 thousand, constituting 29.65%
and 36.98% of the total consolidated net operating revenues of 2018 and 2017 for the years then ended.
In addition, we did not audit the financial statements of all the investee companies accounted for using
~6~
177
equity method. Those statements and the information disclosed in Note 13 were audited by other
independent accountants whose reports thereon have been furnished to us, and our audit expressed herein,
insofar as it relates to the amounts included for those investee companies accounted for using equity
method and information disclosed in Note 13 related to these long-term equity investments, is based
solely on the reports of other independent accountants. Long-term equity investments in these investee
companies amounted to NT$17,158,367 thousand and NT$16,239,361 thousand, constituting 7.49% and
8.12% of the total consolidated assets as of December 31, 2018 and 2017, respectively, and
comprehensive income (including share of profit or loss and share of other comprehensive income of
associates and joint ventures accounted for using equity method) was NT$109,172 thousand and
NT$1,892,245 thousand constituting 16.69% and 51.28% of the consolidated total comprehensive
income and loss for the years then ended, respectively.
Other matter – Parent company only financial reports

We have audited the parent company only financial statement of Evergreen Marine Corporation (Taiwan)
Ltd. as of and for the years ended December 31, 2018 and 2017 on which we have issued an unqualified
opinion with explanatory paragraph thereon.
Responsibilities of management and those charged with governance for the

consolidated financial statements
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 the International Financial Reporting Standards, International Accounting
Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory
Commission, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance, including the audit committee, are responsible for overseeing the
Group’s financial reporting process.
~7~
178
2018 Annual Report
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contentof of
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ofthethe consolidated
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financial
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statements,
statements,
financialstatements,
statements,
including
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thedisclosures,
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and whether
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thefinancial statements
statements
statements
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statementsrepresentrepresent
represent
representthe the
the
the underlying
underlying
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theunderlying transactions
transactions
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transactions
and
and
andand events
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andevents
eventsin in
in
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inaaaaamanner
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manner
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that
that achieves
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achieves
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fair
fair presentation.
presentation.
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fairpresentation.
presentation.
~8~
~8~
~8~
~8~
~8~
179
6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Lee, Hsiu-Ling
Chih, Ping-Chiun
For and on behalf of PricewaterhouseCoopers, Taiwan
March 22, 2019
-------------------------------------------------------------------------------------------------------------------------------------------------
The accompanying consolidated financial statements are not intended to present the financial position and results of
operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other
than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such
financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China.
Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for
use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic
of China, and their applications in practice.
As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for
the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
~9~
180
2018 Annual Report
EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of New Taiwan dollars)
December 31, 2018 December 31, 2017

Assets Notes AMOUNT % AMOUNT %
Current assets
1100 Cash and cash equivalents 6(1)
1140 Current contract assets 6(21)
1150 Notes receivable, net 6(4)
1170 Accounts receivable, net 6(4)
1180 Accounts receivable, net - related 7
parties
1200 Other receivables
1210 Other receivables - related parties 7
1220 Current income tax assets
130X Inventories 6(5)
1410 Prepayments
1470 Other current assets 6(6) and 8
11XX Current assets
Non-current assets
1517 Non-current financial assets at 6(2)
fair value through other
comprehensive income
1523 Available-for-sale financial assets 12(4)
- non-current
1527 Held-to-maturity financial assets - 12(4)
non-current
1535 Non-current financial assets at 6(3)
amortised cost, net
1550 Investments accounted for using 6(7)
equity method
1600 Property, plant and equipment, 6(8), 8 and 9
net
1760 Investment property, net 6(9) and 8
1780 Intangible assets
1840 Deferred income tax assets 6(28)
1900 Other non-current assets 6(10)(15) and 8
15XX Non-current assets
1XXX Total assets
(Continued)
~10~
181

CONSOLIDATED BALANCE SHEETS

Liabilities and Equity Notes AMOUNT % AMOUNT %
Current liabilities
2130 Current contract liabilities 6(21)
2170 Accounts payable
2180 Accounts payable - related parties 7
2200 Other payables
2220 Other payables - related parties 7
2230 Current income tax liabilities
2300 Other current liabilities 6(11)
21XX Current liabilities
Non-current liabilities
2530 Corporate bonds payable 6(12)
2540 Long-term loans 6(13)
2570 Deferred income tax liabilities 6(28)
2600 Other non-current liabilities 6(14)(15)
25XX Non-current liabilities
2XXX Total liabilities
Equity attributable to owners of
the parent
Capital 6(17)
3110 Common stock
Capital surplus 6(18)
3200 Capital surplus
Retained earnings 6(19)
3310 Legal reserve
3350 Unappropriated retained earnings
Other equity interest 6(20)
3400 Other equity interest
31XX Equity attributable to owners
of the parent
36XX Non-controlling interest
3XXX Total equity
Significant Contingent Liabilities 9
And Unrecognized Contract
Commitments
Significant Events After The 11
Balance
3X2X Total liabilities and equity
The accompanying notes are an integral part of these consolidated financial statements.
~11~
182
2018 Annual Report

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in thousands of New Taiwan dollars, except earnings per share)
Years ended December 31

2018 2017
Items Notes AMOUNT % AMOUNT %
4000 Operating revenue 6(21) and 7
5000 Operating costs 6(26)(27) and 7
5900 Gross profit
5910 Unrealized profit from sales
5920 Realized profit on from sales
5950 Gross profit
Operating expenses 6(26)(27) and 7
6100 Selling expenses
6200 General and administrative expenses
6450 Impairment loss (impairment gain
and reversal of impairment loss)
determined in accordance with IFRS
6000 Operating expenses
6500 Other gains - net 6(22)
6900 Operating profit
7010 Other income 6(23)
7020 Other gains and losses 6(24)
7050 Finance costs 6(25)
7060 Share of loss of associates and joint
ventures accounted for using equity
method
7000 Total non-operating income and
expenses
7900 Profit before income tax
7950 Income tax expense 6(28)
8200 Profit for the year
(Continued)
~12~
183

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

2018 2017
Other comprehensive income (loss)
Components of other comprehensive
income that will not be reclassified to
profit or loss
8311 Actuarial loss on defined benefit
plan
8316 Unrealised losses on valuation of 6(2)
investments in equity instruments
measured at fair value through other
8320 Share of other comprehensive
income of associates and joint
method, components of other
comprehensive income that will not
be reclassified to profit or loss
8349 Income tax related to components of 6(28)
other comprehensive income that
will not be reclassified to profit or
loss
8310 Components of other
comprehensive income that will
not be reclassified to profit or
loss
income that will be reclassified to
profit or loss
8361 Exchange differences on translating
the financial statements of foreign
operations
8362 Unrealized gain on valuation of
available-for-sale financial assets
8370 Share of other comprehensive
income (loss) of associates and joint
method
8399 Income tax relating to the 6(28)
components of other comprehensive
income (loss)
8360 Components of other
comprehensive income that will
be reclassified to profit or loss
8300 Other comprehensive (loss) income
for the year, net of income tax
8500 Total comprehensive income for the
year
Profit (loss), attributable to:
8610 Owners of the parent
8620 Non-controlling interest
Comprehensive income (loss)
attributable to:
8710 Owners of the parent
8720 Non-controlling interest
Earnings per share (in dollars) 6(29)

9750 Basic earnings per share
9850 Diluted earnings per share
~13~
184
EVERGREEN MARINE CORPORATION
CONSOLIDATED STATEMENTS (TAIWAN) LTD. AND
OF CHANGES SUBSIDIARIES
IN EQUITY
CONSOLIDATED
(Expressed inSTATEMENTS
thousands of OF
NewCHANGES IN EQUITY
Taiwan dollars)
Equity attributable to owners of the parent
Equity attributable to owners of the parent
Retained earnings Other equity interest
Unrealised gains
Unrealised gains
(losses)
(losses) from from
(Accumulated
(Accumulated Financial
Financial financial
financial assets
assets HedgingHedging
deficit)
deficit) statements
statements measured
measured at fair Unrealized
at fairUnrealized gain or or instrument
gain instrument gain gain Total Gains
Total Gains
Total capital
Total capital unappropriated
unappropriated translation
translation value value through
through otherother
loss loss on available-
on available- (loss) (loss) on effective
on effective (losses) (losses)
on on
surplus, additional
surplus, additional retained
retained differences
differencesofof comprehensive
comprehensive for-sale for-sale
financial
financialhedge hedge
of cashof cashhedging hedging Non-controlling
Non-controlling
Common
Notes Notes Common paid-in
stockstock paid-in capital Legal
capital Legal reserve
reserve earnings
earnings foreign
foreignoperations
operations income
income assetsassets flow hedges
flow hedges instruments
instruments Total Total interest interest
Total equity Total equity
Year 2017 Year 2017

Balance at January January 1, 2017
Balance1,at2017
Profit (loss) for the year
Other comprehensive income (loss) for the year 6(19)(20)
Other comprehensive income (loss) for the year 6(19)(20)
Total comprehensive income
Distribution of 2016 earnings: 6(19)
Distribution of 2016 earnings: 6(19)
Legal reserve used to cover accumulated deficit
Legal reserve
Issuance
used of cover accumulated
to common deficit
stock for cash 6(17)(18)
Issuance of common
Employeestock
stockfor
options
cash exercised 6(17)(18)
6(18)
Employee stock options exercised
Adjustments to share of changes in equity of associates and joint 6(18) 6(18)
ventures
Adjustments to share of changes in equity of associates and joint 6(18)
ventures Effect of business combination
Decrease
Effect of business in non-controlling interests
combination 6(30)
Balance at December
Decrease in non-controlling 31, 2017
interests 6(30)
Balance at Year
December
2018 31, 2017
Balance at January 1, 2018
Year 2018
Retrospective application 3(1), 6(19)
Balance at January 1, 2018 and 12(4)
application
RetrospectiveBalance at 1 January after adjustments 3(1), 6(19)
and 12(4)
Balance at 1 January after adjustments
Other comprehensive income (loss) for the year 6(20)
Profit (loss) for
Total year
thecomprehensive income
Other comprehensive income
Distribution (loss)
of 2017 for the year
earnings: 6(20) 6(17)(19)
Legal capital reserve
Distribution ofStock
2017 dividends
earnings: 6(17)(19)
Legal capitalCash dividends
reserve
Issuance of common stock for cash
Stock dividends 6(17)(18)
Employee stock options exercised
Cash dividends
Adjustments to share of changes in equity of associates and joint 6(18)
Issuance of common
ventures stock for cash 6(17)(18)
Employee stock options
Disposal of investments
exercised in equity instruments designated at fair value 6(2)
to share
Adjustments Effect of changes
of business in equity of associates and joint
combination 6(18)
ventures
Decrease in non-controlling interests 6(18)(30)
Disposal of investments in equity instruments designated at fair value
Balance at December 31, 2018
6(2)
Effect of business combination
Decrease in non-controlling interests 6(18)(30)
Balance at December 31, 2018
~14~
~14~
2018 Annual Report
185

CONSOLIDATED STATEMENTS OF CASH FLOWS

Notes 2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax
Adjustments
Income and expenses having no effect on cash flows
Depreciation 6(8)(9)(24)(26)
Amortization 6(26)
Expected credit loss 12(2)(4)
Interest income 6(23)
Interest expense 6(25)
Dividend income 6(23)
Gain on disposal of available-for-sale financial assets
Loss on disposal of investments accounted for using equity 6(24)
method
Share of (profit) loss of associates and joint ventures
accounted for using equity method
Gain from bargain purchase 6(23)
Net gain on disposal of property, plant and equipment 6(22)
Loss on disposal of other investments
Realized income with affliated companies
Unrealized income with affliated companies
Employee stock options exercised 6(18)
Changes in assets/liabilities relating to operating activities
Changes in operating assets
Current contract assets
Notes receivable, net
Accounts receivable
Accounts receivable, net - related parties
Other receivables
Other receivables - related parties
Inventories
Prepayments
Other current assets
Other non-current assets
Net changes in liabilities relating to operating activities
Current contract liabilities
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Other current liabilities
Other non-current liabilities
Cash inflow generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows from operating activities
(Continued)
186 ~15~
2018 Annual Report
CONSOLIDATED STATEMENTS OF CASH FLOWS
EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES Years ended December 31
CONSOLIDATED STATEMENTS Notes OF CASH FLOWS 2018 2017
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of available-for-sale financial assets
Notes 2018 2017
Proceeds from disposal of financial assets at fair value through 6(2)
other comprehensive income
Proceeds from capital reduction of financial assets at fair value
Proceeds from disposal of available-for-sale financial assets
through other comprehensive income
Proceeds from disposal of financial assets at fair value through 6(2)
Proceeds from disposal of held-to-maturity financial assets
other comprehensive income
Acquisition of held-to-maturity financial assets
Proceeds from capital reduction of financial assets at fair value
Acquisition of investments accounted for using equity method 6(32)
Proceeds from disposal of investments accounted for using equity
Proceeds from disposal of held-to-maturity financial assets
method
Acquisition of held-to-maturity financial assets
Proceeds from capital reduction of investments accounted for
Acquisition of investments accounted for using equity method 6(32)
using equity method
Proceeds from disposal of investments accounted for using equity
Acquisition of property, plant and equipment 6(32)
method
Proceeds from disposal of property, plant and equipment
Proceeds from capital reduction of investments accounted for
Acquisition of intangible assets 6(32)
using equity method
Increase in guarantee deposits paid
Acquisition of property, plant and equipment 6(32)
Increase in other non-current assets 6(32)
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of subsidiaries
Acquisition of intangible assets 6(32)
Effect of initial consolidation of subsidiaries 6(32)
Increase in guarantee deposits paid
Cash dividend received
Increase in other non-current assets 6(32)
Non-current prepayments for investments
Proceeds from disposal of subsidiaries
Net cash flows used in investing activities
Effect of initial consolidation of subsidiaries 6(32)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividend received
Increase in short-term loans
Non-current prepayments for investments
Decrease in short-term loans
Net cash flows used in investing activities
Increase other payables - related parties 7
Increase in long-term loans 6(33)
Increase in short-term loans
Decrease in long-term loans 6(33)
Decrease in short-term loans
Net change in non-controlling interest 6(32)
Increase other payables - related parties 7
Increase in corporate bonds payable
Increase in long-term loans 6(33)
Decrease in corporate bonds payable
Decrease in long-term loans 6(33)
Decrease other non-current liabilities
Net change in non-controlling interest 6(32)
Increase (decrease) in guarantee deposits received
Increase in corporate bonds payable
Issuance of common stock for cash 6(17)
Decrease in corporate bonds payable
Cash dividends paid 6(19)
Decrease other non-current liabilities
Net cash flows from financing activities
Increase (decrease) in guarantee deposits received
Effect of exchange rate changes
Issuance of common stock for cash 6(17)
Net increase in cash and cash equivalents
Cash dividends paid 6(19)
Cash and cash equivalents at beginning of year
Net cash flows from financing activities
Cash and cash equivalents at end of year
Effect of exchange rate changes
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
~16~
~16~ 187

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of New Taiwan Dollars, except as otherwise indicated)
1. HISTORY AND ORGANISATION

Evergreen Marine Corporation (Taiwan) Ltd. (the “Company”) was established in the Republic of China.
The Company and its subsidiaries (collectively referred herein as the “Group”) are mainly engaged in
domestic and international marine transportation, shipping agency services, and the distribution of
containers. The Company was approved by the Securities and Futures Bureau (SFB), Financial
Supervisory Commission, Executive Yuan, R.O.C. to be a public company on November 2, 1982 and
was further approved by the SFB to be a listed company on July 6, 1987. The Company’s shares have
been publicly traded on the Taiwan Stock Exchange since September 21, 1987.
2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION
These consolidated financial statements were authorised by the Board of Directors on March 22, 2019.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting
Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)
New standards, interpretations and amendments endorsed by the FSC effective from 2018 are as
follows:
Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
Amendments to IFRS 2, ‘Classification and measurement of share- January 1, 2018
based payment transactions’
Amendments to IFRS 4, ‘Applying IFRS 9 Financial instruments with January 1, 2018
IFRS 4 Insurance contracts’
IFRS 9, ‘Financial instruments’ January 1, 2018
IFRS 15, ‘Revenue from contracts with customers’ January 1, 2018
Amendments to IFRS 15, ‘Clarifications to IFRS 15 Revenue from January 1, 2018
contracts with customers’
Amendments to IAS 7, ‘Disclosure initiative’ January 1, 2017
Amendments to IAS 12, ‘Recognition of deferred tax assets for January 1, 2017
unrealised losses’
Amendments to IAS 40, ‘Transfers of investment property’ January 1, 2018
IFRIC 22, ‘Foreign currency transactions and advance consideration’ January 1, 2018
~17~
188
2018 Annual Report
Effective date by
Annual improvements to IFRSs 2014-2016 cycle- Amendments to January 1, 2018
IFRS 1, ‘First-time adoption of International Financial Reporting
Standards’
Annual improvements to IFRSs 2014-2016 cycle- Amendments to January 1, 2017
IFRS 12, ‘Disclosure of interests in other entities’
Annual improvements to IFRSs 2014-2016 cycle- Amendments to IAS January 1, 2018
28, ‘Investments in associates and joint ventures’
Except for the following, the above standards and interpretations have no significant impact to the
Group’s financial condition and financial performance based on the Group’s assessment.
A. IFRS 9, ‘Financial instruments’
(a) Classification of debt instruments is driven by the entity’s business model and the contractual
cash flow characteristics of the financial assets, which would be classified as financial asset at
fair value through profit or loss, financial asset measured at fair value through other
comprehensive income or financial asset measured at amortised cost. Equity instruments
would be classified as financial asset at fair value through profit or loss, unless an entity makes
an irrevocable election at inception to present subsequent changes in the fair value of an
investment in an equity instrument that is not held for trading in other comprehensive income.
(b) The impairment losses of debt instruments are assessed using an ‘expected credit loss’
approach. An entity assesses at each balance sheet date whether there has been a significant
increase in credit risk on that instrument since initial recognition to recognise 12-month
expected credit losses or lifetime expected credit losses (interest revenue would be calculated

instrument that has objective evidence of impairment, interest revenue after the impairment
would be calculated on the book value of net carrying amount (i.e. net of credit allowance).
The Group shall always measure the loss allowance at an amount equal to lifetime expected
credit losses for trade receivables that do not contain a significant financing component.
(c) The amended general hedge accounting requirements align hedge accounting more closely
with an entity’s risk management strategy. Risk components of non-financial items and a group
of items can be designated as hedged items. The standard relaxes the requirements for hedge
effectiveness, removing the 80-125% bright line, and introduces the concept of ‘rebalancing

while its risk management objective remains unchanged, an entity shall rebalance the hedged
item or the hedging instrument for the purpose of maintaining the hedge ratio.
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(d) The Group has elected not to restate prior period financial statements using the modified
retrospective approach under IFRS 9. The significant effects of adopting the modified
transition as of January 1, 2018 are summarised below:
i. In accordance with IFRS 9, the Group expects to reclassify available-for-sale financial assets
in the amount of $2,282,619 by increasing financial assets at fair value through other
comprehensive income in the amount of $2,282,619. Additionally, the Group increased
retained earnings by $281,074, decreased investments accounted for using equity method by
$1,397 and decreased other equity interest by $279,677.
ii. In accordance with IFRS 9, the Group expects to reclassify held-to-maturity financial assets
of $100,000 by increasing financial assets at amortised cost in the amount of $100,000.
iii. In line with the regulations under IFRS 9 on provision for impairment, the Group increased
deferred income tax assets by $289, and decreased notes receivable, net by $5, accounts
receivable, net by $857, contract assets, net by $4,467, accounts receivable, net - related
parties by $52, other current assets by $502, investments accounted for using equity method
by $30, retained earnings by $4,393 and non-controlling interest by $1,231.
iv. Please refer to Note 12(4) for disclosure in relation to the first time application of IFRS 9.
B. IFRS 15, ‘Revenue from contracts with customers’ and amendments
(a) IFRS 15, ‘Revenue from contracts with customers’ replaces IAS 11, ‘Construction contracts’,
IAS 18, ‘Revenue’ and relevant interpretations. According to IFRS 15, revenue is recognised
when a customer obtains control of promised goods or services. A customer obtains control of
goods or services when a customer has the ability to direct the use of, and obtain substantially
all of the remaining benefits from, the asset.
The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. An entity recognises
revenue in accordance with that core principle by applying the following steps:
Step 1: Identify contracts with customer.
Step 2: Identify separate performance obligations in the contract(s).
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract(s).
Step 5: Recognise revenue when the performance obligation is satisfied.
Further, IFRS 15 includes a set of comprehensive disclosure requirements that requires an
entity to disclose sufficient information to enable users of financial statements to understand
the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts
with customers.
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2018 Annual Report
(b) The Group has elected not to restate prior period financial statements and recognised the
cumulative effect of initial application as retained earnings at January 1, 2018, using the
modified retrospective approach under IFRS 15. The Group applied retrospectively IFRS 15
only to incomplete contracts as of January 1, 2018, by adopting an optional transition
expedient. The significant effects of adopting the modified transition as of January 1, 2018 are
summarised below:
Presentation of assets and liabilities in relation to contracts with customers
In line with IFRS 15 requirements, the Group changed the presentation of certain accounts in
the balance sheet as follows:
i. Under IFRS 15, contracts whereby services have been rendered but not yet billed are
recognised as contract assets, but were previously presented as part of accounts receivable
in the balance sheet. As of January 1, 2018, the balance amounted to $1,881,693 (including
contract assets and allowance for bad debts amounting to $1,886,160 and $4,467,
respectively).
ii. Under IFRS 15, liabilities in relation to contracts are recognised as contract liabilities, but
were previously presented as advance sales receipts in the balance sheet. As of January 1,
2018, the balance amounted to $2,523,101.
iii. Please refer to Note 12(5) for other disclosures in relation to the first time application of
IFRS 15.
(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by
the Group
follows:
Effective date by
Amendments to IFRS 9, ‘Prepayment features with negative January 1, 2019
compensation’
IFRS 16, ‘Leases’ January 1, 2019
Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ January 1, 2019
Amendments to IAS 28, ‘Long-term interests in associates and joint January 1, 2019
ventures’
IFRIC 23, ‘Uncertainty over income tax treatments’ January 1, 2019
Annual improvements to IFRSs 2015-2017 cycle January 1, 2019
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A. IFRS 16, ‘Leases’

IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard
requires lessees to recognise a 'right-of-use asset' and a lease liability (except for those leases with
terms of 12 months or less and leases of low-value assets). The accounting stays the same for
lessors, which is to classify their leases as either finance leases or operating leases and account for
those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided
by lessors.
The Group expects to recognise the lease contract of lessees in line with IFRS 16. However, the
Group does not intend to restate the financial statements of prior period (collectively referred
herein as the modified retrospective approach). On January 1, 2019, it is expected that right-
of-use asset and lease liability will be increased by $60,887,660 and $60,710,151, respectively.
B. Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’
When a change to a plan take place, the amendments require a company to use the updated
assumptions from this remeasurement to determine current service cost and net interest for the
remainder of the reporting period after the change to the plan.
C. Annual improvements to IFRSs 2015-2017 cycle
(a) Amendments to IFRS 3, ‘Business combinations’
The amendments clarified that obtaining control of a business that is a joint operation is a
business combination achieved in stages. The acquirer should remeasure its previously held
interest in the joint operation at fair value at of the acquisition date.
(b) Amendments to IAS 12, ‘Income taxes’
The amendment clarified that the income tax consequences of dividends on financial
instruments classified as equity should be recognised according to where the past transactions
or events that generated distributable profits were recognised. These requirements apply to all
income tax consequences of dividends.
(c) Amendments to IAS 23, ‘Borrowing costs’
The amendments clarified that if a specific borrowing remains outstanding after the related
qualifying asset is ready for its intended use or sale, it becomes part of general borrowings.
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2018 Annual Report
(3) Effect of IFRSs issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as
endorsed by the FSC are as follows:
Effective date by
Amendment to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of January 1, 2020
Material’
Amendments to IFRS 3, ‘Definition of a business’ January 1, 2020
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by
between an investor and its associate or joint venture’ International Accounting
Standards Board
IFRS 17, ‘Insurance contracts’ January 1, 2021
A. Amendment to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of Material’
The amendments clarify the definition of material that information is material if omitting,
misstating or obscuring it could reasonably be expected to influence the decisions that the primary
users of general purpose financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity.
B. Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its
associate or joint venture’
The amendments resolve a current inconsistency between IFRS 10 and IAS 28. The gain or loss
resulting from a transaction that involves sales or contribution of assets between an investor and
its associates or joint ventures is recognised either in full or partially depending on the nature of
the assets sold or contributed:
(a) If sales or contributions of assets constitute a ‘business’
(b) If sales or contributions of assets do not constitute a ‘business’ , the partial gain or loss is
recognised only to the extent of unrelated investors’ interests in the associate or joint venture.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements
are set out below. These policies have been consistently applied to all the periods presented, unless
otherwise stated.
(1) Compliance statement
These consolidated financial statements of the Group have been prepared in accordance with the
“Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International
Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC
Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).
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(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under
the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through
profit or loss.
(b) Financial assets at fair value through other comprehensive income /Available-for-sale financial
assets measured at fair value.
(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less
present value of defined benefit obligation.
B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of
applying the Group’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements are disclosed in Note 5.
C. In adopting IFRS 9 and IFRS 15 effective January 1, 2018, the Group has elected to apply modified
retrospective approach whereby the cumulative impact of the adoption was recognised as retained
earnings or other equity as of January 1, 2018 and the financial statements for the year ended
December 31, 2017 were not restated. The financial statements for the year ended December 31,
2017 were prepared in compliance with International Accounting Standard 39 (‘IAS 39’),
International Accounting Standard 11 (‘IAS 11’), International Accounting Standard 18 (‘IAS 18’)
and related financial reporting interpretations. Please refer to Notes 12(4) and (5) for details of
significant accounting policies and details of significant accounts.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are
all entities (including structured entities) controlled by the Group. The Group controls an entity
when the Group is exposed, or has rights, to variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity. Consolidation
of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases
when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealised gains or losses on transactions between
companies within the Group are eliminated. Accounting policies of subsidiaries have been
adjusted where necessary to ensure consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners
of the parent and to the non-controlling interests. Total comprehensive income is attributed to
the owners of the parent and to the non-controlling interests even if this results in the non-
controlling interests having a deficit balance.
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2018 Annual Report
(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing
control of the subsidiary (transactions with non-controlling interests) are accounted for as
equity transactions, i.e. transactions with owners in their capacity as owners. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value of
the consideration paid or received is recognised directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained
in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial
recognition of a financial asset or the cost on initial recognition of the associate or joint venture.
Any difference between fair value and carrying amount is recognised in profit or loss. All
amounts previously recognised in other comprehensive income in relation to the subsidiary
are reclassified to profit or loss on the same basis as would be required if the related assets or
liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or
losses previously recognised in other comprehensive income in relation to the subsidiary
should be reclassified from equity to profit or loss, if such gains or losses would be reclassified
to profit or loss when the related assets or liabilities are disposed of.
B. Subsidiaries included in the consolidated financial statements:
Ownership (%)
Name of Name of Main business December 31, December 31,
Investor Subsidiary activities 2018 2017 Description
The TTSC Cargo loading 55.00 55.00
Company and discharging
The Peony Investments in 100.00 100.00

Company transport-related
business
The ETS Terminal Services 94.43 100.00 (e)

Company
The EGH Container shipping and 79.00 79.00

Company agency services dealing
with port formalities
Peony GMS Container shipping 100.00 100.00
Peony Clove Investments in container 100.00 100.00

yards and port terminals
Peony EMU Container shipping 51.00 51.00
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Ownership (%)
Peony EHIC(M) Manufacturing of 84.44 84.44

dry steel containers
and container parts
Peony Armand Investments in container 70.00 70.00

N.V. yards and port terminals
Peony KTIL Loading, discharging, 20.00 20.00

storage, repairs and
cleaning of containers
Peony MBPI Containers storage 95.03 95.03

and inspections of
containers at the
customs house
Peony MBT Inland transportation, 17.39 17.39

repairs and cleaning
of containers
Peony EGS Agency services dealing - 51.00 (m)

Peony EGK Agency services dealing 100.00 100.00

Peony EGT Agency services dealing 85.00 85.00

Peony EGI Agency services dealing 99.99 99.99

Peony EMA Agency services dealing 100.00 67.50 (a)

Peony EIT Agency services dealing 55.00 55.00

Peony EES Agency services dealing 100.00 100.00

Peony ERU Agency services dealing 51.00 51.00

Peony EEU Agency services dealing 100.00 100.00 (c)(d)

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2018 Annual Report
Ownership (%)
Peony EGD-WWX Agency services dealing - 100.00 (c)

Peony ESA Agency services dealing 55.00 55.00

Peony EGB Real estate leasing 95.00 95.00
Peony EGM Agency services dealing 100.00 100.00

Peony EGH Container shipping and 1.00 1.00

agency services dealing
Peony EGV Agency services dealing 100.00 49.00 (f)

EGH Ever shine Management consultancy 100.00 100.00

(Shanghai) and self-owned property
leasing
EGH Ever shine Management consultancy 100.00 100.00

(Ningbo) and self-owned property
leasing
EGH EKH Agency services dealing 100.00 100.00 (g)

EGH EPE Agency services dealing 60.00 - (h)

EGH ECO Agency services dealing 100.00 - (i)

EGH ECL Agency services dealing 60.00 - (j)

EGH EMX Agency services dealing 60.00 - (k)

EGH HMH Agency services dealing - - (l)

EGH Ever shine Management consultancy 100.00 - (l)

(Shenzhen) and self-owned property
leasing
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Ownership (%)
EGH Ever shine Management consultancy 100.00 - (l)
(Qingdao) and self-owned property
leasing
EGH MAC Agency services dealing 49.00 - (l)

EGH KTIL Loading, discharging, 20.00 - (e)

ETS Whitney Investments and 100.00 - (e)

leases of operating
machinery and
equipment of port
terminals
EMU Island Investments in - 15.00 (e)

operating machinery
and equipment of
port terminals
EMU KTIL Loading, discharging, 20.00 20.00

EMU EGU Agency services - 100.00 (b)

dealing with port
formalities
EMU EGUD Agency services dealing - 100.00 (b)

EEU EGDL Agency services - 100.00 (d)

dealing with port
formalities
Clove Island Investments in - 36.00 (e)

operating machinery
and equipment of
port terminals
Clove ETS Terminal Services 5.57 - (e)
Armand Armand Investments in container 100.00 100.00

N.V. B.V. yards and port terminals
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2018 Annual Report
Ownership (%)
Island Whitney Investments and - 100.00 (e)

leases of operating
machinery and
equipment of port
terminals
Island Hemlock Investments and - 100.00 (e)

leases of operating
machinery and
equipment of port
terminals
MBPI MBT Inland transportation, 72.95 72.95

repairs and cleaning
of containers
(a) On December 21, 2018, the Board of Directors resolved to have the subsidiary Peony
Investment acquire 32.5% of the shares of EMA from the original shareholders of the joint
venture. The effective date of ownership transfer was December 28, 2018.
(b) On August 1, 2016, the Board of Directors has resolved that the subsidiary – Peony to sell
100% share ownership of EGUD to the indirect subsidiary – EMU. Since EMU obtained the
wholly-owned ownership, the Board of Directors resolved a reorganization plan to transfer
businesses from EGU and EGUD to EMU on August 1, 2016. The liquidation process of EGU
and EGUD were completed by June 28, 2018 and May 27, 2018, respectively.
(c) The proposal of reorganisation of the subsidiary, Peony, has been approved by the Board of
Directors on May 12, 2017 to transfer EGDW’s business to the sub-subsidiary, EEU,
beginning on August 1, 2017. The liquidation process of EGDW was completed by June 12,
2018.
(d) The proposal of reorganisation of the sub-subsidiary, EEU, has been resolved at the
shareholders’ meeting on May 18, 2017, to transfer its business to its subsidiary, EGDL,
effective on August 1, 2017. The liquidation process of EGDL was completed by May 14,
2018.
(e) On December 20, 2017, shareholders of the subsidiary, ETS, during their meeting resolved to
make an equity transaction. ETS acquired a 100% equity interest of Island from the joint
ventures, Clove and EMU, of which the transaction made with Clove is through issuing new
shares totaling 59 shares with par value of US$100 per share in exchange for a 36% equity
interest of Island with Clove. On January 1, 2018, shareholders of ETS during their meeting
resolved to merge its subsidiary, Island, and its second-tier subsidiaries, Hemlock and Whitney,
when the equity transaction made with Clove and EMU was completed. Under the merger, ETS
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199
and Whitney are the surviving companies, and Island and Hemlock will be dissolved.
(f) On December 20, 2017, the Board of Directors resolved to have the subsidiary, Peony
Investment, acquire 51% of the shares of EGV from the original shareholders of the joint
venture. The effective date of ownership transfer was January 1, 2018.
(g) On September 13, 2017, the Board of Directors of the subsidiary, EGH, resolved to establish
a subsidiary, EKH, in Cambodia. The capital of establishment is KHR 1,200,000 (approx. USD
300), and the subsidiary is primarily engaged in container shipping and agency services dealing
with port formalities.
(h) On July 31, 2018, the Board of Directors of the subsidiary, EGH, resolved to establish a
subsidiary, EPE, in Peru. The capital of establishment is PEN 1,500 (approx. USD462), and
the subsidiary is primarily engaged in container shipping and agency services dealing with
port formalities.
(i) On August 14, 2018, the Board of Directors of the subsidiary, EGH, resolved to establish a
subsidiary, ECO, in Columbia. The capital of establishment is COP 80,000 (approx. USD27),
and the subsidiary is primarily engaged in container shipping and agency services dealing with
port formalities.
(j) On October 1, 2018, the Board of Directors of the subsidiary, EGH, resolved to establish a
subsidiary, ECL, in Chile. The capital of establishment is CLP 350,000 (approx. USD531),
port formalities.
(k) On October 15, 2018, the Board of Directors of the subsidiary, EGH, resolved to establish a
subsidiary, EMX, in Mexico. The capital of establishment is MXN 7,400 (approx. USD382),
port formalities.
(l) On August 13, 2018, shareholders of the subsidiary, EGH, during their meeting resolved to
make an equity transaction. EGH acquired a 100% equity interest of HMH and its indirect
investees, wholly-owned Ever shine (Shenzhen), wholly-owned Ever shine (Qingdao), 49%
owned MAC and 20% owned KTIL from the joint ventures, Chestnut Estate B.V.. The
transaction amount was US $105,808. The applicable transactions were approved by the
Investment Commission of the Ministry of Economic Affairs. The acquisition date was
December 14, 2018. On December 21, 2018, shareholders of EGH during their meeting
resolved to merge its subsidiary, HMH. EGH will be the surviving companies and HMH will
be dissolved after the merger. As of the date of issuance of the financial report, the merger
procedure was still in process.
(m) The liquidation process of the sub-subsidiary, EGS was completed by December 19, 2018.
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2018 Annual Report
C. Subsidiary not included in the consolidated financial statements: None.

D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group:
As of December 31, 2018 and 2017, the non-controlling interest amounted to $4,123,606 and
$3,290,236, respectively. The information of non-controlling interest and respective subsidiaries is
as follows:
Non-controlling interest
Name of Principal place Ownership Ownership
subsidiary of business Amount (%) Amount (%) Description
EMU U.K. $ 1,469,422 49% $ 598,392 49%
EGH Hong Kong 1,903,321 20% 1,591,869 20%
Summarised financial information of the subsidiaries:
Balance sheets
EMU
Current assets $ 9,362,266 $ 9,113,834
Non-current assets 37,184,025 38,436,657
Current liabilities ( 17,239,612) ( 20,121,083)
Non-current liabilities ( 26,307,858) ( 26,208,199)
Total net assets $ 2,998,821 $ 1,221,209
EGH
Current assets $ 9,396,355 $ 3,119,694
Total net assets $ 9,213,294 $ 7,959,346
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Statements of comprehensive income

EMU
Year ended Year ended
Revenue $ 50,304,493 $ 54,151,814
Loss before income tax ($ 1,297,028) ($ 1,313,841)
Income tax expense ( 23,795) ( 15,818)
Loss for the period from
continuing operations ( 1,320,823) ( 1,329,659)
Other comprehensive income
(loss), net of tax 7,518 ( 13,202)
Total comprehensive loss
for the period ($ 1,313,305) ($ 1,342,861)
Comprehensive loss attributable
to non-controlling interest ($ 643,519) ($ 658,002)
EGH
Revenue $ 11,014,069 $ 3,883,278
Profit before income tax $ 1,194,785 $ 977,953
Income tax expense ( 215,462) ( 114,967)
Profit for the period
from continuing operations 979,323 862,986
Other comprehensive loss,
net of tax ( 2,263) ( 3,310)
Total comprehensive income for
the period $ 977,060 $ 859,676
Comprehensive income attributable
to non-controlling interest $ 195,412 $ 12,402
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2018 Annual Report
Statements of cash flows
EMU
Net cash (used in) provided by
operating activities ($ 953,448) $ 4,996,091
Net cash provided by (used in)
investing activities 1,098,202 ( 246,896)
Net cash used in financing
activities ( 256,283) ( 4,648,565)
Effect of exchange rates on cash
and cash equivalents 58,194 ( 150,575)
Decrease in cash and cash
equivalents ( 53,335) ( 49,945)
Cash and cash equivalents,
beginning of period 1,840,693 1,890,638
end of period $ 1,787,358 $ 1,840,693
EGH
Net cash provided by operating
activities $ 2,565,400 $ 1,944,965
Net cash (used in) provided by
investing activities ( 12,950,639) 80,984
Net cash provided by (used in)
financing activities 12,471,803 ( 1,252,423)
Effect of exchange rates on cash
and cash equivalents 75,867 ( 39,186)
Increase in cash and cash
equivalents 2,162,431 734,340
beginning of period 1,003,634 269,294
end of period $ 3,166,065 $ 1,003,634
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(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the
currency of the primary economic environment in which the entity operates (the “functional
currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the
Company’s functional and the Group’s presentation currency.
A. Foreign currency transactions and balances
(a) Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions or valuation where items are remeasured.
Foreign exchange gains and losses resulting from the settlement of such transactions are
recognised in profit or loss in the period in which they arise, except when deferred in other
comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-
translated at the exchange rates prevailing at the balance sheet date. Exchange differences
arising upon re-translation at the balance sheet date are recognised in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value
through profit or loss are re-translated at the exchange rates prevailing at the balance sheet
-monetary assets and
liabilities denominated in foreign currencies held at fair value through other comprehensive
income are re-translated at th

translation differences are recognised in other comprehensive income. However, non-
monetary assets and liabilities denominated in foreign currencies that are not measured at fair
value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All other foreign exchange gains and losses based on the nature of those transactions are
presented in the statement of comprehensive income within ‘other gains and losses’.
B. Translation of foreign operations
(a) The operating results and financial position of all the group entities and associates that have a
functional currency different from the presentation currency are translated into the
presentation currency as follows:
i. Assets and liabilities for each balance sheet presented are translated at the closing exchange
rate at the date of that

ii. Income and expenses for each statement of comprehensive income are translated at average

iii. All resulting exchange differences are recognised in other comprehensive income.
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2018 Annual Report
(b) When the foreign operation partially disposed of or sold is an associate, exchange differences
that were recorded in other comprehensive income are proportionately reclassified to profit or
loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest
in the former foreign associate after losing significant influence over the former foreign
associate, such transactions should be accounted for as disposal of all interest in these foreign
operations.
(c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange
differences that were recorded in other comprehensive income are proportionately transferred
to the non-controlling interest in this foreign operation. In addition, even when the Group
retains partial interest in the former foreign subsidiary after losing control of the former
foreign subsidiary, such transactions should be accounted for as disposal of all interest in the
foreign operation.
(d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated
as assets and liabilities of the foreign entity and translated at the closing exchange rates at the
balance sheet date.
(5) Classification of current and non-current items
A. Assets that meet one of the following criteria a
classified as non-current assets:
(a) Assets arising from operating activities that are expected to be realised, or are intended to be

(b) Assets held m
(c) Assets that are expected to be realise

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to
be exchanged or used to settle liabilities more than twelve months after the balance sheet date.
B.
are classified as non-current liabilities:
(a) Liabilities that are expected to be settled
(b)

(c) Liabilities that are to be settled

(d) Liabilities for which the repayment date cannot be extended unconditionally to more than
twelve months after the balance sheet date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity instruments do not affect its
classification.
(6) Cash equivalents
Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits with
original maturities of one year or less that meet the definition above and are held for the purpose of
meeting short-term cash commitments in operations are classified as cash equivalents.
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(7) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at
amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are
recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognises the
transaction costs in profit or loss. The Group subsequently measures the financial assets at fair
value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future
economic benefits associated with the dividend will flow to the Group and the amount of the
dividend can be measured reliably.
(8) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities
which are not held for trading, and for which the Group has made an irrevocable election at initial
recognition to recognise changes in fair value in other comprehensive income and debt instruments
which meet all of the following criteria:
(a) The objective of the Group’s business model is achieved both by collecting contractual cash
flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive
income are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs.
The Group subsequently measures the financial assets at fair value:
(a) The changes in fair value of equity investments that were recognised in other comprehensive
income are reclassified to retained earnings and are not reclassified to profit or loss following
the derecognition of the investment. Dividends are recognised as revenue when the right to
receive payment is established, future economic benefits associated with the dividend will
flow to the Group and the amount of the dividend can be measured reliably.
(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign
exchange which are recognised in profit or loss, the changes in fair value of debt instruments
are taken through other comprehensive income. When the financial asset is derecognised, the
cumulative gain or loss previously recognised in other comprehensive income is reclassified
from equity to profit or loss.
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(9) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:
(a) The objective of the Group’s business model is achieved by collecting contractual cash flows.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and
derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs.
Interest income from these financial assets is included in finance income using the effective
interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or
impaired.
(10) Notes, accounts and other receivables
A. Notes and account receivable entitle the Group a legal right to receive consideration in exchange
for transferred goods or rendered services. Receivables arising from transactions other than the
sale of goods or service are classified as other receivables.
B. The Group initially measures accounts and notes receivable at fair value and subsequently
recognises the amortised interest income over the period of circulation using the effective interest
method and the impairment loss. A gain or loss is recognised in profit or loss.
(11) Impairment of financial assets
For debt instruments measured at fair value through other comprehensive income and financial
assets at amortised cost including accounts receivable or contract assets that have a significant
financing component at each reporting date, the Group recognises the impairment provision for 12
months expected credit losses if there has not been a significant increase in credit risk since initial
recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if
such credit risk has increased since initial recognition after taking into consideration all reasonable
and verifiable information that includes forecasts. On the other hand, for accounts receivable or
contract assets that do not contain a significant financing component, the Group recognises the
impairment provision for lifetime ECLs.
(12) Derecognition of financial assets
The Group derecognises a financial asset when one of the following conditions is met:
A. The contractual rights to receive cash flows from the financial asset expire.
B. The contractual rights to receive cash flows from the financial asset have been transferred and
the Group has transferred substantially all risks and rewards of ownership of the financial asset.
C

however, the Group has not retained control of the financial asset.
(13) Operating leases (lessor)
Lease income from an operating lease (net of any incentives given to the lessee) is recognised in
profit or loss on a straight-line basis over the lease term.
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(14) Inventories
Inventories refer to fuel inventories and steel inventories. Fuel inventories are physically measured
by the crew of each ship and reported back to the Head Office through telegraph for recording
purposes at balance sheet date. Valuation of inventories is based on the exchange rate prevailing at
balance sheet date.
The perpetual inventory system is adopted for steel inventory recognition. Steel inventories are
stated at cost. The cost is determined using the weighted-average method. At the end of period,
inventories are evaluated at the lower of cost or net realisable value, and the individual item approach
is used in the comparison of cost and net realisable value. The calculation of net realisable value
should be based on the estimated selling price in the normal course of business, net of estimated
costs of completion and estimated selling expenses.
(15) Investments accounted for using equity method / associates
A. Associates are all entities over which the Group has significant influence but not control. In
general, it is presumed that the investor has significant influence, if an investor holds, directly or
indirectly 20 percent or more of the voting power of the investee. Investments in associates are
accounted for using the equity method and are initially recognised at cost.
B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or
loss, and its share of post-acquisition movements in other comprehensive income is recognised
in other comprehensive income. When the Group’s share of losses in an associate equals or
exceeds its interest in the associate, including any other unsecured receivables, the Group does
not recognise further losses, unless it has incurred legal or constructive obligations or made
payments on behalf of the associate.
C. When changes in an associate’s equity that are not recognised in profit or loss or other
comprehensive income of the associate and such changes not affecting the Group’s ownership
percentage of the associate, the Group recognises the Group’s share of change in equity of the
associate in ‘capital surplus’ in proportion to its ownership.
D. Unrealised gains and loss on transactions between the Group and its associates are eliminated to
the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred. Accounting policies
of associates have been adjusted where necessary to ensure consistency with the policies adopted
by the Group.
E. In the case that an associate issues new shares and the Group does not subscribe or acquire new
shares proportionately, which results in a change in the Group’s ownership percentage of the
associate but maintains significant influence on the associate, then ‘capital surplus’ and
‘investments accounted for using equity method’ shall be adjusted for the increase or decrease of
its share of equity interest. If the above condition causes a decrease in the Group’s ownership
percentage of the associate, in addition to the above adjustment, the amounts previously
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2018 Annual Report
recognised in other comprehensive income in relation to the associate are reclassified to profit or
loss proportionately on the same basis as would be required if the relevant assets or liabilities
were disposed of.
F. Upon loss of significant influence over an associate, the Group remeasures any investment
retained in the former associate at its fair value. Any difference between fair value and carrying
amount is recognised in profit or loss.
G. When the Group disposes its investment in an associate and loses significant influence over this
associate, the amounts previously recognised in other comprehensive income in relation to the
associate, are reclassified to profit or loss, on the same basis as would be required if the relevant
assets or liabilities were disposed of. If it retains significant influence over this associate, the
amounts previously recognised in other comprehensive income in relation to the associate are
reclassified to profit or loss proportionately in accordance with the aforementioned approach.
H. When the Group disposes its investment in an associate and loses significant influence over this
associate, the amounts previously recognised as capital surplus in relation to the associate are
transferred to profit or loss. If it still retains significant influence over this associate, then the
amounts previously recognised as capital surplus in relation to the associate are transferred to
profit or loss proportionately.
(16) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the
construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Group and the cost of the item can be measured reliably. The carrying amount of the
replaced part is derecognised. All other repairs and maintenance are charged to profit or loss
during the financial period in which they are incurred.
C. Land is not depreciated. Other property, plant and equipment apply cost model and are
depreciated using the straight-line method to allocate their cost over their estimated useful lives.
Each part of an item of property, plant, and equipment with a cost that is significant in relation
to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each financial year-end. If expectations for the assets’ residual values and useful
lives differ from previous estimates or the patterns of consumption of the assets’ future economic
benefits embodied in the assets have changed significantly, any change is accounted for as a
change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and
Errors’, from the date of the change. The estimated useful lives of property, plant and equipment
are as follows:
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Buildings 20 ~ 135 years

Loading and unloading equipment 5 ~ 20 years
Ships 18 ~ 25 years
Transportation equipment 5 ~ 10 years
Lease assets 2 ~ 90 years
Other equipment 2 ~ 15 years
(17) Leased assets/ operating leases (lessee)
A. Based on the terms of a lease contract, a lease is classified as a finance lease if the Group assumes
substantially all the risks and rewards incidental to ownership of the leased asset.
(a) A finance lease is recognised as an asset and a liability at the lease’s commencement at the
lower of the fair value of the leased asset or the present value of the minimum lease payments.
(b) The minimum lease payments are apportioned between the finance charges and the reduction
of the outstanding liability. The finance charges are allocated to each period over the lease
term so as to produce a constant periodic rate of interest on the remaining balance of the
liability.
(c) Property, plant and equipment held under finance leases are depreciated over their estimated
useful lives. If there is no reasonable certainty that the Group will obtain ownership at the end
of the lease, the asset shall be depreciated over the shorter of the lease term and its useful life.
B. Payments made under an operating lease (net of any incentives received from the lessor) are
recognised in profit or loss on a straight-line basis over the lease term.
C. The accounting treatment of sale and leaseback transactions depends on the substance of the
transaction. If sale and finance leaseback is in substance a financing transaction, the difference
between the sales proceeds and the carrying value of the asset is deferred and amortised to the
income statement over the lease term. If the sale price is below the fair value, the difference
between sale price and carrying amount should be recognised immediately except that, if a loss
arising is compensated by future rent at below market price, it should be deferred and amortised
in proportion to the rent payments over the period for which the asset is expected to be used. If
the sale price is above the fair value, the excess of proceeds over fair value should be deferred
and amortised over the period for which the asset is expected to be used.
(18) Investment property
An investment property is stated initially at its cost and measured subsequently using the cost model.
Except for land, investment property is depreciated on a straight-line basis over its estimated useful
life of 20 ~ 60 years.
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2018 Annual Report
(19) Intangible assets

A. Computer software
Computer software is stated at cost and amortised on a straight-line basis over its estimated useful
life of 3 years.
B. Goodwill
Goodwill arises in a business combination accounted for by applying the acquisition method.
C. Customer relationship
Customer relationship arises from the business combination is measured initially at their fair
values at the acquisition date. Customer relationship has a finite useful life and are amortised on
a straight-line basis over their estimated useful lives of 8.05 to 10 years.
(20) Impairment of non-financial assets
The Group assesses at each balance sheet date the recoverable amounts of those assets where there
is an indication that they are impaired. An impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for
recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment
loss is reversed. The increased carrying amount due to reversal should not be more than what the
depreciated or amortised historical cost would have been if the impairment had not been recognised.
(21) Borrowings
A. Borrowings comprise long-term and short-term bank borrowings and other long-term and short-
term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently stated at amortised ceeds (net
of transaction costs) and the redemption value is recognised in profit or loss over the period of
the borrowings using the effective interest method.
B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to
the extent that it is probable that some or all of the facility will be drawn down. In this case, the
fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable
that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for
liquidity services and amortised over the period of the facility to which it relates.
(22) Accounts payable
A. Accounts payable are liabilities for purchases of raw materials, goods or services.
B. The Group initially measures accounts payable at fair value and subsequently amortises the
interest expense in profit or loss over the period of circulation using the effective interest method.
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211
(23) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for
the purpose of repurchasing in the short-term. Derivatives are also categorised as financial
liabilities held for trading unless they are designated as hedges or financial liabilities at fair value
through profit or loss. Financial liabilities that meet one of the following criteria are designated
as at fair value through profit or loss at initial recognition:

(b) They elimin

(c) They are managed and their performance is evaluated on a fair value basis, in accordance with
a documented risk management policy.
B. At initial recognition, the Group measures the financial liabilities at fair value. All related
transaction costs are recognised in profit or loss. The Group subsequently measures these
financial liabilities at fair value with any gain or loss recognised in profit or loss.
(24) Bonds payable
Ordinary corporate bonds issued by the Group are initially recognised at fair value less transaction
costs. Any difference between the proceeds (net of transaction costs) and the redemption value is
presented as an addition to or deduction from bonds payable, which is amortised to profit or loss
over the period of bond circulation using the effective interest method as an adjustment to ‘finance
costs’.
(25) Derecognition of financial liabilities
A financial liability is derecognised when the obligation specified in the contract is either discharged
or cancelled or expires.
(26) Offsetting financial instruments
Financial assets and liabilities are offset and reported in the net amount in the balance sheet when
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle
on a net basis or realise the asset and settle the liability simultaneously.
(27) Hedge accounting
A. At the inception of the hedging relationship, there is formal designation and documentation of
the hedging relationship and the Group’s risk management objective and strategy for undertaking
the hedge. That documentation shall include identification of the hedging instrument, the hedged
item, the nature of the risk being hedged and how the Group will assess whether the hedging
relationship meets the hedge effectiveness requirements.
B. The Group designates the hedging relationship as follows:
Cash flow hedge:
A hedge of the exposure to variability in cash flows that is attributable to a particular risk
associated with a recognised asset or liability or a highly probable forecast transaction.
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2018 Annual Report
C. Cash flow hedges

(a)The cash flow hedge reserve associated with the hedged item is adjusted to the lower of the
following (in absolute amounts):
i. the cumulative gain or loss on th
ii. the cumulative change in fair value of the hedged item from inception of the hedge.
(b)The effective portion of the gain or loss on the hedging instrument is recognised in other
comprehensive income. The gain or loss on the hedging instrument relating to the ineffective
portion is recognised in profit or loss.
(c)The amount that has been accumulated in the cash flow hedge reserve in accordance with (a)
is accounted for as follows:
i. If a hedged forecast transaction subsequently results in the recognition of a non-financial
asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or
non-financial liability becomes a firm commitment for which fair value hedge accounting
is applied, the Group shall remove that amount from the cash flow hedge reserve and
include it directly in the initial cost or other carrying amount of the asset or liability.
ii. For cash flow hedges other than those covered by item i. above, that amount shall be
reclassified from the cash flow hedge reserve to profit or loss as a reclassification
adjustment in the same period or periods during which the hedged expected future cash
flows affect profit or loss.
iii. If that amount is a loss and the Group expects that all or a portion of that loss will not be
recovered in one or more future periods, it shall immediately reclassify the amount that is
not expected to be recovered into profit or loss as a reclassification adjustment.
(d) When the hedging instrument expires, or is sold, terminated, exercised or when the hedging
relationship ceases to meet the qualifying criteria, if the forecast transaction is still expected
to occur, the amount that has been accumulated in the cash flow hedge reserve shall remain

is no longer expected to occur, the amount shall be immediately reclassified from the cash
flow hedge reserve to profit or loss as a reclassification adjustment.
(28) Employee benefits
A. Short-term employee benefits
Short-term employee benefits are measured at the undiscounted amount of the benefits expected
to be paid in respect of service rendered by employees in a period and should be recognised as
expense in that period when the employees render service.
B. Pensions
(a) Defined contribution plans
For defined contribution plans, the contributions are recognised as pension expense when they
are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a
cash refund or a reduction in the future payments.
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213
(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of
pension benefits that employees will receive on retirement for their services with the Group
in current period or prior periods. The liability recognised in the balance sheet in respect of
defined benefit pension plans is the present value of the defined benefit obligation at the
balance sheet date less the fair value of plan assets. The net defined benefit obligation is
calculated annually by independent actuaries using the projected unit credit method. The
rate used to discount is determined by using interest rates of high-quality corporate bonds
that are denominated in the currency in which the benefits will be paid, and that have terms

market in high-quality corporate bonds, the Group uses interest rates of government bonds
(at the balance sheet date) instead.
ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive
income in the period in which they arise and are recorded as retained earnings.
iii. Past service costs are recognised immediately in profit or loss.
C. Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of
employment as a result from either the Group’s decision to terminate an employee’s employment
before the normal retirement date, or an employee’s decision to accept an offer of redundancy
benefits in exchange for the termination of employment. The Group recognises expense as it can
no longer withdraw an offer of termination benefits or it recognises relating restructuring costs,
whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet
date shall be discounted to their present value.
D. Employees’ compensation and directors’ remuneration
Employees’ compensation and directors’ remuneration are recognised as expense and liability,
provided that such recognition is required under legal or constructive obligation and those
amounts can be reliably estimated. Any difference between the resolved amounts and the
subsequently actual distributed amounts is accounted for as changes in estimates. If employee
compensation is paid by shares, the Group calculates the number of shares based on the closing
price at the previous day of the board meeting resolution.
(29) Income tax
A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or
loss, except to the extent that it relates to items recognised in other comprehensive income or
items recognised directly in equity, in which cases the tax is recognised in other comprehensive
income or equity.
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2018 Annual Report
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively
enacted at the balance sheet date in the countries where the Company and its subsidiaries operate
and generate taxable income. Management periodically evaluates positions taken in tax returns
with respect to situations in accordance with applicable tax regulations. It establishes provisions
where appropriate based on the amounts expected to be paid to the tax authorities. An additional
tax is levied on the unappropriated retained earnings and is recorded as income tax expense in
the year the stockholders resolve to retain the earnings.
C. Deferred income tax is recognised, using the balance sheet liability method, on temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in
the consolidated balance sheet. Deferred income tax is provided on temporary differences arising
on investments in subsidiaries and associates, except where the timing of the reversal of the
temporary difference is controlled by the Group and it is probable that the temporary difference
will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the balance sheet date and are expected
to apply when the related deferred income tax asset is realised or the deferred income tax liability
is settled.
D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised. At each balance sheet
date, unrecognised and recognised deferred income tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount reported in the balance
sheet when there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously.
Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the
legally enforceable right to offset current tax assets against current tax liabilities and they are
levied by the same taxation authority on either the same entity or different entities that intend to
settle on a net basis or realise the asset and settle the liability simultaneously.
F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from
acquisitions of equipment or technology, research and development expenditures and equity
investments to the extent that it is possible that future taxable profit will be available against which
the unused tax credits can be utilised.
(30) Dividends
Dividends are recorded in the Company’s financial statements in the period in which they are
resolved by the Company’s shareholders.
are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the
effective date of new shares issuance.
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215
(31) Revenue recognition

A. Sales of goods
Revenue is measured at the fair value of the consideration received or receivable taking into
account of business tax, returns, rebates and discounts for the sale of goods to external customers
in the ordinary course of the Group’s activities. Revenue arising from the sales of goods is
recognised when the Group has delivered the goods to the customer, the amount of sales revenue
can be measured reliably and it is probable that the future economic benefits associated with the
transaction will flow to the entity. The delivery of goods is completed when the significant risks
and rewards of ownership have been transferred to the customer, the Group retains neither
continuing managerial involvement to the degree usually associated with ownership nor effective
control over the goods sold, and the customer has accepted the goods based on the sales contract
or there is objective evidence showing that all acceptance provisions have been satisfied.
B. Sales of services
Revenue from delivering services is recognised under the percentage-of-completion method
when the outcome of services provided can be estimated reliably. The stage of completion of a
service contract is measured by the percentage of the actual services performed as of the financial
reporting date to the total services to be performed. If the outcome of a service contract cannot
be estimated reliably, contract revenue should be recognised only to the extent that contract costs
incurred are likely to be recoverable.
C. Rental revenue
The Group leases ships and shipping spaces under IAS 17, ‘Leases’. Lease assets are classified
as finance leases or operating leases based on the transferred proportion of the risks and rewards
incidental to ownership of the leased asset, and recognised in revenue over the lease term.
(32) Business combinations
A. The Group uses the acquisition method to account for business combinations. The consideration
transferred for an acquisition is measured as the fair value of the assets transferred, liabilities
incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of
any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-
related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their fair values at the
acquisition date. For each business combination, the Group measures at the acquisition date
components of non-controlling interests in the acquiree that are present ownership interests and
entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation
at either fair value or the present ownership instruments’ proportionate share in the recognised
amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be
measured at the acquisition-date fair value.
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2018 Annual Report
B. The excess of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the fair value of any previous equity interest in the acquiree over the fair value of
the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the
acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree
recognised and the fair value of previously held equity interest in the acquiree is less than the
fair value of the identifiable assets acquired and the liabilities assumed, the difference is
recognised directly in profit or loss on the acquisition date.
(33) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the
Chief Operating Decision-Maker. The Chief Operating Decision-Maker is responsible for allocating
resources and assessing performance of the operating segments.
5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION
UNCERTAINTY
The preparation of these consolidated financial statements requires management to make critical
judgements in applying the Group’s accounting policies and make critical assumptions and estimates
concerning future events. Assumptions and estimates may differ from the actual results and are
continually evaluated and adjusted based on historical experience and other factors. Such assumptions
and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets
below:
(1)Critical judgements in applying the Group’s accounting policies
None.
(2)Critical accounting estimates and assumptions
A. Revenue recognition
Revenue from delivering services and related costs are recognised under the percentage-of-
completion method when the outcome of services provided can be estimated reliably. The stage
of completion of a service contract is measured by the percentage of the actual services performed
as of the financial reporting date to the total services to be performed.
B. Impairment assessment of tangible and intangible assets (excluding goodwill)
The Group assesses impairment based on its subjective judgement and determines the separate
cash flows of a specific group of assets, useful lives of assets and the future possible income and
expenses arising from the assets depending on how assets are utilized and industrial characteristics.
Any changes of economic circumstances or estimates due to the change of Group strategy might
cause material impairment on assets in the future.
As of December 31, 2018, the Group recognised property, plant, equipment amounting to
$117,219,185.
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217
6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents
Cash on hand and petty cash $ 22,713 $ 20,739
Checking accounts and demand deposits 7,192,906 6,300,219
Time deposits 31,014,903 31,787,305
$ 38,230,522 $ 38,108,263
A. The Group transacts with a variety of financial institutions all with high credit quality to disperse
credit risk, so it expects that the probability of counterparty default is remote. The Group’s
maximum exposure to credit risk at balance sheet date is the carrying amount of all cash and cash
equivalents.
B. The Group has no cash and cash equivalents pledged to others.
Items December 31, 2018
Non-current items:
Listed (TSE) stocks $ 490,801
Unlisted stocks 211,476
702,277
Valuation adjustment 948,095
$ 1,650,372
A. The Group has elected to classify these investments that are considered to be strategic investments
as financial assets at fair value through other comprehensive income. The fair value of such
investments amounted to $1,650,372 at December 31, 2018.
B. For the year ended December 31, 2018, for the consideration of operations, the Group sold shares
of unlisted stocks and listed stocks with a fair value of $34,055 and $342,661, respectively, of
which a cumulative disposal gain of $111 and $13,332, respectively, was recognised.
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2018 Annual Report
C.
C.
C.Amounts
Amounts
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recognised
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inprofit
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D.
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enhancements,the the
themaximum
maximum
maximumexposureexposure
exposureto to
tocredit
credit
creditrisk
risk
riskin
in
inrespect
respect
respectofof
ofthe
the
theamount
amount
amountthatthat
thatbest
best
bestrepresents
represents
represents
the
the
the financial
financial
financial assets
assets
assets atat
at fair
fair
fair value
value
value through
through
through other
other
other comprehensive
comprehensive
comprehensive income income
income held
held
held byby
by the
the
the Group
Group
Group was
was
was
$1,650,372.
$1,650,372.
$1,650,372.
E.
E.
E. Information
Information
Information relating
relating
relating toto
to credit
credit
credit risk
risk
risk of
of
of financial
financial
financial assets
assets
assets atat
at fair
fair
fair value
value
value through
through
through other
other
other comprehensive
comprehensive
comprehensive
income
income
incomeis isisprovided
provided
providedin in
inNote
Note
Note12(3).
12(3).
12(3).
F.
F.
F.Information
Information
Informationon on
onavailable-for-sale
available-for-sale
available-for-salefinancial
financial
financialassets
assets
assetsand
and
andfinancial
financial
financialassets
assets
assetsatat
atcost
cost
costas
as
asofof
ofDecember
December
December31, 31,
31,
2017
2017
2017are
are
areprovided
provided
providedinin
inNote
Note
Note12(4).
12(4).
12(4).
(3)
(3)
(3)Financial
Financial
Financialassets
assets
assetsatat
atamortised
amortised
amortisedcost cost
cost
Items
Items
Items December
December
December31,
31,
31,2018
2018
2018
Non-currentitems:
Non-current
Non-current items:
items:
Financialbonds
Financial
Financial bonds
bonds $$$ 100,000
100,000
100,000
A.
A.
A.Amounts
Amounts
Amounts recognised
recognised
recognised in
in
in profit
profit
profit or
or
or loss
loss
loss in
in
in relation
relation
relation to
to
to financial
financial
financial assets
assets
assets at
at
at amortised
amortised
amortised cost
cost
cost are
are
are listed
listed
listed
below:
below:
below:
Year
Year
Yearended
ended
ended
December
December
December31,
31,
31,2018
2018
2018
Interest
Interest
Interestincome
income
income $$$ 2,200
2,200
2,200
B. As
B.
B. As at
As at December
at December 31,
December 31, 2018,
31, 2018, without
2018, without taking
without taking into
taking into account
into account any
account any collateral
any collateral held
collateral held or
held or other
or other credit
other credit
credit
enhancements,the
enhancements,
enhancements, themaximum
the maximumexposure
maximum exposureto
exposure tocredit
to creditrisk
credit riskin
risk inrespect
in respectof
respect ofthe
of theamount
the amountthat
amount thatbest
that bestrepresents
best represents
represents
thefinancial
the
the financialassets
financial assetsat
assets atamortised
at amortisedcost
amortised costheld
cost heldby
held bythe
by theGroup
the Groupwas
Group was$100,000.
was $100,000.
$100,000.
C.The
C.
C. TheGroup
The Grouphas
Group hasno
has nofinancial
no financialassets
financial assetsat
assets atamortised
at amortisedcost
amortised costheld
cost heldby
held bythe
by theGroup
the Grouppledged
Group pledgedto
pledged toothers.
to others.
others.
D. Information
D.
D. Information on
Information on held-to-maturity
on held-to-maturity financial
held-to-maturity financial assets
financial assets and
assets and investments
and investments in
investments in debt
in debt instruments
debt instruments without
instruments without
without
activemarket
active
active marketas
market asof
as ofDecember
of December31,
December 31,2017
31, 2017are
2017 areprovided
are providedin
provided inNote
in Note12(4).
Note 12(4).
12(4).
~48~
~48~
~48~
219
(4) Notes and accounts receivable

Notes receivable $ 154,299 $ 66,410
Less: Allowance for bad debts ( 4) -
$ 154,295 $ 66,410
Accounts receivable (including related parties) $ 15,613,317 $ 13,865,953

Less: Allowance for bad debts ( 96,468) ( 96,283)
$ 15,516,849 $ 13,769,670
Overdue receivables (recorded as

other non-current assets) $ 202,654 $ 195,715
Less: Allowance for bad debts ( 202,654) ( 195,715)
$ - $ -
A. The ageing analysis of accounts receivable and notes receivable are as follows:
Accounts receivable Accounts receivable
Not impaired $ 12,352,224 $ 11,747,121
Up to 30 days 2,694,557 1,749,509
31 to 180 days 470,068 273,040
$ 15,516,849 $ 13,769,670

Notes receivable Notes receivable
Not impaired $ 154,295 $ 66,410
Up to 30 days - -
31 to 180 days - -
$ 154,295 $ 66,410
The above ageing analysis was based on past due date.
B. The Group has no notes and accounts receivable held by the Group pledged to others.
C. As at December 31, 2018 and 2017, without taking into account any collateral held or other credit
enhancements, the maximum exposure to credit risk in respect of the amount that best represents
the Group’s notes receivable were $ 154,295 and $66,410, respectivelythe amount that best
represents the Group’s accounts receivable were $ $15,516,849 and $ 13,769,670, respectively.
D. Information relating to credit risk of accounts receivable and notes receivable is provided in Note
12(2).
~49~
220
2018 Annual Report
(5) Inventories
December 31, 2018
Allowance for
Cost valuation loss Book value
Ship fuel $ 4,715,175 $ - $ 4,715,175
Steel and others 385,722 - 385,722
$ 5,100,897 $ - $ 5,100,897
December 31, 2017

Allowance for
Ship fuel $ 3,306,081 $ - $ 3,306,081
Steel and others 413,348 - 413,348
$ 3,719,429 $ - $ 3,719,429
(6) Other current assets

Shipowner's accounts $ 624,748 $ 1,207,851
Agency accounts 894,341 824,422
Temporary debits 1,333,964 308,312
Other financial assets 271,721 324,508
$ 3,124,774 $ 2,665,093
A. Shipowner’s accounts:
(a) Temporary accounts, between the Group and other related parties – Evergreen International
S.A., Gaining Enterprise S.A., Italia Marittima S.p.A., Evergreen Marine (Hong Kong) Ltd.
and Evergreen Marine (Singapore) Pte. Ltd. incurred due to foreign port formalities and pier
rental expenses.
(b) In response to market competition and enhancement of global transportation network to
provide better logistics services to customers, the Group has joined Cosco Container Lines
Co., Ltd., Kawasaki Kisen Kaisha, Ltd., Yang Ming (UK), Ltd. and Hanjin Shipping Co., Ltd.
to form the CKYHE Alliance Transactions for trading of shipping spaces from March 1, 2014
to March 31, 2017.
(c) In response to market competition and enhancement of global transportation network to
provide better logistics services to customers, the Group has joined Cosco Container Lines
Co., Ltd., CMA CGM, Ltd., and the Orient Overseas Container Line, Ltd. to form the OCEAN
Alliance on March 31, 2017 for trading of shipping space.
B. Agency accounts:
The Group entered into agency agreements with its related parties, whereby the related parties act
as the Group’s agents to deal with domestic and foreign port formalities, such as arrival and
~50~
221
departure of the Group’s ships, cargo stevedoring and forwarding, freight collection, and payment
of expenses incurred in domestic and foreign ports.
(7) Investments accounted for using equity method
A. Details of long-term equity investments accounted for using equity method are set forth below:
Evergreen International Storage $ 8,884,659 $ 8,452,437
and Transport Corporation
EVA Airways Corporation 10,334,116 9,462,402
Taipei Port Container Terminal Corporation 1,500,384 1,428,295
Charng Yang Development Co., Ltd. 544,057 537,532
Luanta Investment (Netherlands) N.V. 1,933,828 1,865,804
Balsam Investment (Netherlands) N.V. 658,599 1,282,862
Colon Container Terminal S.A. 3,261,433 2,532,187
Others 1,148,092 1,221,507
$ 28,265,168 $ 26,783,026
B. Associates
(a) The basic information of the associates that are material to the Group is as follows:
Principal
place of Nature of Methods of
Company name business Ownership(%) relationship measurement
December 31, December 31,
2018 2017
Evergreen
International With a right
Equity
Storage and TW 40.36% 39.74% over 20% to
method
Transport vote
Corporation
Have a right
EVA Airways to vote in the Equity
TW 16.31% 16.31%
Corporation Board of method
Directors
~51~
222
2018 Annual Report
(b) The summarised financial information of the associates that are material to the Group is as
follows:
Balance sheet
Evergreen International Storage and Transport Corporation
Current assets $ 6,066,455 $ 5,429,946
Total net assets $ 22,530,677 $ 21,690,865
Share in associate's net assets $ 8,982,546 $ 8,558,554
Unrealized income with
affiliated companies ( 97,887) ( 106,117)
Carrying amount of the associate $ 8,884,659 $ 8,452,437
EVA Airways Corporation

Current assets $ 75,996,433 $ 69,002,340
Total net assets $ 70,119,735 $ 64,209,508
Statement of comprehensive income

Year ended December Year ended December
31, 2018 31, 2017
Revenue $ 7,742,438 $ 7,554,009
Profit for the period $ 870,248 $ 884,258
Other comprehensive income (loss),
net of tax 351,587 ( 647,260)
Total comprehensive income $ 1,221,835 $ 236,998
Dividends received from associates $ 148,422 $ 148,422
~52~
223

31, 2018 31, 2017
Revenue $ 179,907,332 $ 163,561,731
Profit for the period $ 7,214,513 $ 6,310,934
net of tax ( 543,495) ( 769,683)
Total comprehensive income $ 6,671,018 $ 5,541,251
(c) The carrying amount of the Group’s interests in all individually immaterial associates and the
Group’s share of the operating results are summarised below:
As of December 31, 2018 and 2017, the carrying amount of the Group’s individually
immaterial associates amounted to $ 9,046,393 and $8,868,187, respectively.
31, 2018 31, 2017
(Loss) gain for the period ($ 992,621) $ 2,410,843
Other comprehensive loss, net
( 3,309) ( 4,318)
of tax
Total comprehensive (loss) income ($ 995,930) $ 2,406,525
C. Above stated certain investments accounted for using equity method are based on the financial
statements of associates which were audited by the independent accountants.
D. Above stated certain investments accounted for using equity method are based on the financial
statements of associates which were reviewed by the associates’ independent accountants.
E. The fair value of the Group’s associates which have quoted market price was as follows:
Evergreen International Storage and $ 5,814,345 $ 6,000,494
Transport Corporation
$ 17,108,587 $ 16,790,954
F. On December 21, 2017, the Board of Directors of the subsidiary, Evergreen Marine (Hong Kong)
Ltd., during their meeting resolved to acquire a 9% equity interest of Colon Container Terminal
S.A. from its original shareholder, Marubeni Corporation, in the amount of USD 15,600, and gain
from bargain purchase amounted to USD43,000 thousand was recognised. The shareholding ratio
will be increased to 49% when the transaction is completed.
G. On October 8, 2018, the Board of Directors during their meeting resolved to acquire 6,629
thousand shares of Evergreen International Storage and Transport Corporation’s shares from the
stock exchange market. The transaction price was $86,894, and the ownership percentage was
increased to 40.36% after the purchase.
~53~
224
(8) Property, plant
(8) Property, plantand
andequipment,
equipment,netnet
Loading and Computer and

Machinery unloading communication Transportation Office Lease Leasehold
Land Buildings equipment equipment equipment equipment Ships equipment assets improvements Others Total
At January 1, 2018
At January 1, 2018
Cost $ 829,745 $ 7,194,260 $ 611,447 $ 9,600,294 $ 1,120,713 $ 16,325,955 $107,532,947 $ 533,874 $19,524,906 $ 574,438 $ 85,891 $ 163,934,470
Cost
Accumulated $ 829,745 $ 7,194,260 $ 611,447 $ 9,600,294 $ 1,120,713 $ 16,325,955 $107,532,947 $ 533,874 $19,524,906 $ 574,438 $ 85,891 $ 163,934,470
depreciation
Accumulated - ( 1,111,749) ( 495,678) ( 5,878,445) ( 416,793) ( 7,596,520) ( 43,793,777) ( 423,613) ( 6,168,818) ( 358,270) ( 3,353) ( 66,247,016)
depreciation $ 829,745 - $ 6,082,511 $ 115,769
( 1,111,749) $ 3,721,849
( 495,678) ( 5,878,445)
$ ( 703,920 $ 8,729,435
416,793) $ 63,739,170
( 7,596,520) $ 110,261
( 43,793,777) $13,356,088
( 423,613) $ 216,168
( 6,168,818) ( $358,270)
82,538 ($ 97,687,454
3,353) ( 66,247,016)
2018 $ 829,745 $ 6,082,511 $ 115,769 $ 3,721,849 $ 703,920 $ 8,729,435 $ 63,739,170 $ 110,261 $13,356,088 $ 216,168 $ 82,538 $ 97,687,454
Opening
2018 net book
Opening
amount net book $ 829,745 $ 6,082,511 $ 115,769 $ 3,721,849 $ 703,920 $ 8,729,435 $ 63,739,170 $ 110,261 $13,356,088 $ 216,168 $ 82,538 $ 97,687,454
Additions - 40,149 23,114 1,035,091 20,370 10,041,327
amount $ 829,745 $ 6,082,511 $ 115,769 $ 65,091
3,721,849 $ 90,695
703,9208,367,446
$ 8,729,435 297,302
$ 63,739,170
34,023$ 110,261 $13,356,088 $ 216,168
68,046 $ 82,538 $ 97,687,454
Disposals - ( 96,090) - ( 462) ( 1,009) ( 549,776) - ( 157) ( 4,594) - 652,088)
Additions - 40,149 23,114 65,091 90,695 8,367,446 297,302 34,023 1,035,091 20,370- ( 68,046 10,041,327
Reclassifications - 7,275 - 172,500 13,706 1,989 16,116,276 ( 6,924) ( 121,803) - ( 14,672) 16,168,347
Disposals - ( 96,090) - ( 462) ( 1,009) ( 549,776) - ( 157) ( 4,594) - - ( 652,088)
Depreciation - ( 145,356) ( 10,827) ( 519,453) ( 209,499) ( 1,644,186) ( 4,788,870) ( 40,922) ( 1,185,711) ( 122,078) ( 3,658) ( 8,670,560)
Reclassifications - 7,275 - 172,500 13,706 1,989 16,116,276 ( 6,924) ( 121,803) - ( 14,672) 16,168,347
Acquired from
Depreciation
business combinations 145,356) ( 10,827)
- - ( 140,031 - ( 519,453)
- ( 209,499)
9,378 ( 1,644,186)
113 ( 4,788,870)
- (
24,383 40,922) (
158 1,185,711) (
10,539 122,078)
26,620 ( 3,658) (
211,222 8,670,560)
Acquired from
Net exchange
business
differencescombinations( 7,669) - 149,834
140,031 1,084 - 57,028 - 20,915 9,378 291,603 1,460,396 (
113 459,947
-355) 24,383 158 125 575
10,539 2,433,483
26,620 211,222
Net exchange
Closing net book
amount
differences $( 822,076
7,669)$ 6,178,354
149,834$ 129,140 $ 3,496,553
1,084 $
57,028 628,10620,915 $ 76,824,274
$ 15,196,624291,603 $ 120,309
1,460,396 ( $13,539,176
355) $ 125,124
459,947 $ 159,449
125 $ 117,219,185
575 2,433,483
Closing net book
At December 31, 2018
amount $ 822,076 $ 6,178,354 $ 129,140 $ 3,496,553 $ 628,106 $ 15,196,624 $ 76,824,274 $ 120,309 $13,539,176 $ 125,124 $ 159,449 $ 117,219,185
Cost $ 822,076 $ 7,436,436 $ 640,766 $ 10,823,844 $ 1,245,653 $ 22,567,926 $126,866,151 $ 543,931 $20,242,368 $ 605,782 $ 166,460 $ 191,961,393
Accumulated
depreciation - ( 1,258,082) ( 511,626) ( 7,327,291) ( 617,547) ( 7,371,302) ( 50,041,877) ( 423,622) ( 6,703,192) ( 480,658) ( 7,011) ( 74,742,208)
Cost $ 822,076 $ 7,436,436 $ 640,766 $ 10,823,844 $ 1,245,653 $ 22,567,926 $126,866,151 $ 543,931 $20,242,368 $ 605,782 $ 166,460 $ 191,961,393
$ 822,076 $ 6,178,354 $ 129,140 $ 3,496,553 $ 628,106 $ 15,196,624 $ 76,824,274 $ 120,309 $13,539,176 $ 125,124 $ 159,449 $ 117,219,185
Accumulated
depreciation - ( 1,258,082) ( 511,626) ( 7,327,291) ( 617,547) ( 7,371,302) ( 50,041,877) ( 423,622) ( 6,703,192) ( 480,658) ( 7,011) ( 74,742,208)
$ 822,076 $ 6,178,354 $ 129,140 $ 3,496,553 $ 628,106 $ 15,196,624 $ 76,824,274 $ 120,309 $13,539,176 $ 125,124 $ 159,449 $ 117,219,185
~54~
~54~
2018 Annual Report
225
226
At January 1, 2017
Cost $ 845,610 $ 1,632,334 $ 600,442 $ 9,269,204 $ 1,064,943 $ 17,025,213 $110,782,722 $ 511,701 $21,192,069 $ 366,787 $ 138,493 $ 163,429,518
Accumulated
depreciation - ( 1,004,644) ( 479,520) ( 5,612,263) ( 248,689) ( 7,412,028) ( 42,981,997) ( 411,375) ( 5,565,381) ( 242,660) ( 531) ( 63,959,088)
$ 845,610 $ 627,690 $ 120,922 $ 3,656,941 $ 816,254 $ 9,613,185 $ 67,800,725 $ 100,326 $15,626,688 $ 124,127 $ 137,962 $ 99,470,430
2017
Opening net book
amount $ 845,610 $ 627,690 $ 120,922 $ 3,656,941 $ 816,254 $ 9,613,185 $ 67,800,725 $ 100,326 $15,626,688 $ 124,127 $ 137,962 $ 99,470,430
Additions - 1,891 3,169 202,894 58,911 985,566 207,088 21,224 70,957 15,488 35,235 1,602,423
Disposals - ( 1,067) ( 285) ( 3,875) ( 617) ( 25,375) ( 3,451) ( 3,721) ( 6,337) ( 6,155) - ( 50,883)
Reclassifications - 7,130 - 482,220 76,298 - 3,660,780 ( 4,012) ( 81,527) 204,088 ( 81,922) 4,263,055
Depreciation - ( 40,958) ( 10,041) ( 464,240) ( 192,670) ( 1,328,043) ( 4,406,998) ( 33,435) ( 1,063,223) ( 120,753) ( 2,822) ( 7,663,183)
Acquired from
business combinations - 5,615,200 173 - 2,265 2,970 116,948 27,237 - - - 5,764,793
Net exchange
differences ( 15,865) ( 127,375) 1,831 ( 152,091) ( 56,521) ( 518,868) ( 3,635,922) 2,642 ( 1,190,470) ( 627) ( 5,915) ( 5,699,181)
Closing net book
amount $ 829,745 $ 6,082,511 $ 115,769 $ 3,721,849 $ 703,920 $ 8,729,435 $ 63,739,170 $ 110,261 $13,356,088 $ 216,168 $ 82,538 $ 97,687,454

Cost $ 829,745 $ 7,194,260 $ 611,447 $ 9,600,294 $ 1,120,713 $ 16,325,955 $107,532,947 $ 533,874 $19,524,906 $ 574,438 $ 85,891 $ 163,934,470
Accumulated
depreciation - ( 1,111,749) ( 495,678) ( 5,878,445) ( 416,793) ( 7,596,520) ( 43,793,777) ( 423,613) ( 6,168,818) ( 358,270) ( 3,353) ( 66,247,016)
$ 829,745 $ 6,082,511 $ 115,769 $ 3,721,849 $ 703,920 $ 8,729,435 $ 63,739,170 $ 110,261 $13,356,088 $ 216,168 $ 82,538 $ 97,687,454
A. The Group has issued a negative pledge to granting banks for drawing borrowings within the credit line to purchase the above transportation
equipment.
B. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.
~55~
2018 Annual Report
(9) Investment property, net

Land Buildings Total
At January 1, 2018
Cost $ 1,414,757 $ 4,066,438 $ 5,481,195
Accumulated depreciation - ( 511,923) ( 511,923)
$ 1,414,757 $ 3,554,515 $ 4,969,272
2018
Opening net book amount $ 1,414,757 $ 3,554,515 $ 4,969,272
Reclassifications 270 - 270
Depreciation - ( 132,980) ( 132,980)
Acquired from business combinations - 962,109 962,109
Net exchange differences 27 36,376 36,403
Closing net book amount $ 1,415,054 $ 4,420,020 $ 5,835,074

Cost $ 1,415,054 $ 5,048,676 $ 6,463,730
$ 1,415,054 $ 4,420,020 $ 5,835,074
At January 1, 2017
Cost $ 1,414,631 $ 1,000,649 $ 2,415,280
$ 1,414,631 $ 524,143 $ 1,938,774
2017
Opening net book amount $ 1,414,631 $ 524,143 $ 1,938,774
Reclassifications 174 - 174
Depreciation - ( 28,516) ( 28,516)
Acquired from business combinations - 3,119,127 3,119,127
Net exchange differences ( 48) ( 60,239) ( 60,287)
Closing net book amount $ 1,414,757 $ 3,554,515 $ 4,969,272

Cost $ 1,414,757 $ 4,066,438 $ 5,481,195
$ 1,414,757 $ 3,554,515 $ 4,969,272
~56~
227
A. Rental income from the investment property and direct operating expenses arising from the
investment property are shown below:
31, 2018 31, 2017
Rental revenue from the lease of the
investment property $ 273,868 $ 125,880
Direct operating expenses arising
from the investment property
that generated rental income
in the period $ 134,783 $ 25,294
Direct operating expenses arising
from the investment property that
did not generate rental income in
the period $ 734 $ 1,017
B. The fair value of the investment property held by the Group as at December 31, 2018 and 2017
was $7,801,498 and $6,743,253, respectively. The fair value measurements were based on the
market prices of recently sold properties in the immediate vicinity of a certain property.
C. Information about the investment property that were pledged to others as collaterals is provided in
Note 8.
(10) Other non-current assets
Prepayments for equipment $ 4,619,738 $ 6,080,908
Refundable deposits 226,760 197,413
Others 94,646 160,044
$ 4,941,144 $ 6,438,365
Movement analysis of prepayments for equipment are as follows:

31, 2018 31, 2017
At January 1 $ 6,080,908 $ 4,898,843
Additions 14,606,580 5,615,770
Reclassification to property,
plant and equipment ( 16,168,617) ( 4,263,229)
Net exchange differences 100,867 ( 170,476)
At December 31 $ 4,619,738 $ 6,080,908
~57~
228
2018 Annual Report
Amount of borrowing costs capitalised as part of prepayment for equipment and the range of the
interest rates for such capitalisation are as follows:
31, 2018 31, 2017
Amount capitalised $ 155,226 $ 107,084
Interest rate 0.86%~4.12% 1.31%~3.06%
(11) Other current liabilities

Receipt in advance $ 15,127 $ 12,367
Long-term liabilities - current portion 16,350,126 16,117,966
Shipowner's accounts 1,804,031 2,322,289
Agency accounts 2,385,780 4,838,099
Long-term leases payable - current 1,941,251 1,349,699
Others 119,663 75,249
$ 22,615,978 $ 24,715,669
(12) Corporate bonds payable

Domestic secured corporate bonds $ 10,000,000 $ 8,000,000
Less: Current portion or exercise of put
options - -
$ 10,000,000 $ 8,000,000
A.. On April 25, 2017, the Company issued its thirteenth domestic secured corporate bonds (referred
herein as the “Thirteenth Bonds”), totaling $8,000,000. The Thirteenth Bonds are categorized into
Bond A, B, C, D, E, F and G, depending on the guarantee institution. Bond A totals $2,000,000,
and the rest total $6,000,000, with each par value of $1,000,000. The major terms of the issuance
are set forth below:
(a) Period: 5 years (April 25, 2017 to April 25, 2022)
(b) Coupon rate: 1.05% fixed per annum
(c) Principal repayment and interest payment
Repayments for the Thirteenth Bonds are paid annually on coupon rate, starting a year from
the issuing date. For each category of the bonds mentioned above, half the principal must be
paid at the end of the fourth year, and another half at the maturity date.
(d) Collaterals
The Thirteenth Bonds are secured. Bond A is guaranteed by Hua Nan Bank, Bond B is
guaranteed by First Bank, Bond C is guaranteed by Mega International Commercial Bank,
Bond D is guaranteed by Land Bank of Taiwan, Bond E is guaranteed by Chang Hwa Bank,
Bond F is guaranteed by Taiwan Cooperative Bank, and Bond G is guaranteed by Bank
Sinopac.
~58~
229
B. On June 27, 2018, the Company issued its fourteenth domestic secured corporate bonds (referred
herein as the “Fourteenth Bonds”), totaling $2,000,000 at face value. The major terms of the
issuance are set forth below:
(a) Period: 5 years (June 27, 2018 to June 27, 2023)
Repayments for the Fourteenth Bonds are paid annually at coupon rate, starting a year from
the issuing date. The principal of the Fourteenth Bonds shall be repaid in lump sum at maturity.
(d) Collaterals
The Fourteenth Bonds are secured and are guaranteed by First Commercial Bank.
(13) Long-term loans
Secured bank loans $ 63,430,488 $ 55,586,429
Unsecured bank loans 35,729,010 25,915,897
Add : Unrealised foreign exchange
(gains) losses 223,179 10,339
Less: Hosting fee credit ( 22,176) ( 25,034)
99,360,501 81,487,631
Less: Current portion (recorded as other
current liabilities) ( 16,350,126) ( 16,117,966)
$ 83,010,375 $ 65,369,665
Borrowing period 2019.01~2028.12 2018.02~2027.06
Interest rate 1.12%~5.15% 1.18%~5.15%
Please refer to Note 8 for details of the collaterals pledged for the above long-term loans.
(14) Other non-current liabilities
Long-term leases payable - non-current $ 9,698,447 $ 10,381,197
Accrued pension liabilities 2,935,589 3,053,342
Guarantee deposits received 347,115 37,608
Unrealised gain on sale and leaseback 20,041 39,874
$ 13,001,192 $ 13,512,021
(15) Finance lease liabilities

The Group leases in loading and unloading equipment, ships and transportation equipment under
finance lease, based on the terms of the lease contracts. Future minimum lease payments and their
present values as at December 31, 2018 and 2017 are as follows:
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2018 Annual Report
December 31, 2018
Total finance lease Future finance Present value of

liabilities charges finance lease liabilities
Current
Not later than one year $ 2,325,368 ($ 384,117) $ 1,941,251
Non-current
Later than one year but not
later than five years 10,489,983 ( 791,536) 9,698,447
$ 12,815,351 ($ 1,175,653) $ 11,639,698
December 31, 2017
Total finance lease Future finance Present value of

liabilities charges finance lease liabilities
Current
Not later than one year $ 1,761,272 ($ 411,573) $ 1,349,699
Non-current
Later than one year but not 11,124,634 ( 1,092,641) 10,031,993
later than five years
Over five years 356,716 ( 7,512) 349,204
11,481,350 ( 1,100,153) 10,381,197
$ 13,242,622 ($ 1,511,726) $ 11,730,896
(16) Pension
A.(a) The Company and its domestic subsidiary-TTSC have a defined benefit pension plan in
accordance with the Labor Standards Act (“the Act”), covering all regular employees’ service
years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years
thereafter of employees who chose to continue to be subject to the pension mechanism under
the Act. Under the defined benefit pension plan, two units are accrued for each year of service
for the first 15 years and one unit for each additional year thereafter, subject to a maximum of
45 units. Pension benefits are based on the number of units accrued and the average monthly
salaries and wages of the last 6 months prior to retirement. The Company and its subsidiary-
TTSC contribute monthly an amount equal to 15% of the employees’ monthly salaries and
wages to the retirement fund deposited with the Trust Department of Bank of Taiwan under
the name of the Labor Pension Fund Supervisory Committee. Also, the Company would
assess the balance in the aforementioned labor pension reserve account by the end of
December 31, every year. If the account balance is insufficient to pay the pension calculated
by the aforementioned method, to the employees expected to be qualified for retirement next
year, the Company will make contributions to cover the deficit by next March.
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231
(b) The employees with R.O.C. nationality of the Group’s subsidiaries, Evergreen Marine (Hong
Kong) Ltd., Greencompass Marine S. A. and Evergreen Marine (UK) Limited, adopted the
Act. Under the defined benefit pension plan, two units are accrued for each year of service for
the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45
units. Pension benefits are based on the number of units accrued and the average monthly
salaries and wages of the last 6 months prior to retirement.
(c) The amounts recognised in the balance sheet are as follows:
Present value of defined benefit obligations ($ 4,240,280) ($ 4,236,061)
Fair value of plan assets 1,304,691 1,182,719
Net defined benefit liability ($ 2,935,589) ($ 3,053,342)
(d) Movements in net defined benefit liabilities are as follows:
Present value of Fair value of
defined benefit plan Net defined
obligations assets benefit liability
Year ended December 31, 2018
Balance at January 1 ($ 4,236,061) $ 1,182,719 ($ 3,053,342)
Current service cost ( 157,857) - ( 157,857)
Interest (expense) income ( 56,362) 19,780 ( 36,582)
Past service cost 121 - 121
Curtailment (Settlement) 344 ( 8,470) ( 8,126)
( 4,449,815) 1,194,029 ( 3,255,786)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense) - 24,053 24,053
Change in demographic assumptions ( 9,184) - ( 9,184)
Change in financial assumptions ( 41,007) - ( 41,007)
Experience adjustments ( 6,090) - ( 6,090)
( 56,281) 24,053 ( 32,228)
Pension fund contribution 10,349 246,597 256,946
Paid pension 247,051 ( 152,800) 94,251
Exchange difference 8,416 ( 7,188) 1,228
Balance at December 31 ($ 4,240,280) $ 1,304,691 ($ 3,053,342)
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2018 Annual Report
Present value of Fair value of

defined benefit plan Net defined
obligations assets benefit liability
Balance at January 1 ($ 4,165,132) $ 1,197,086 ($ 2,968,046)
Past service cost 1,415 - 1,415
Settlement profit or loss 668 - 668
( 4,382,153) 1,208,750 ( 3,173,403)
Remeasurements:
interest income or expense) - ( 40,092) ( 40,092)
Change in demographic assumptions ( 6,478) - ( 6,478)
( 108,912) ( 40,092) ( 149,004)
Pension fund contribution 22,718 188,078 210,796
Paid pension 302,970 ( 201,422) 101,548
Exchange difference ( 33,781) 27,405 ( 6,376)
Effect of business combination ( 36,903) - ( 36,903)
Balance at December 31 ($ 4,236,061) $ 1,182,719 ($ 3,053,342)
(e) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and its
domestic subsidiaries-TTSC’s defined benefit pension plan in accordance with the Fund’s
annual investment and utilisation plan and the “Regulations for Revenues, Expenditures,
Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilization
for the Fund includes deposit in domestic or foreign financial institutions, investment in
domestic or foreign listed, over-the-counter, or private placement equity securities,
investment in domestic or foreign real estate securitization products, etc.). With regard to the
utilisation of the Fund, its minimum earnings in the annual distributions on the final financial
statements shall be no less than the earnings attainable from the amounts accrued from
twoyear time deposits with the interest rates offered by local banks. If the earning is less than
aforementioned rates, government shall make payment for the deficit after being authorized
by the Regulator. The Group has no right to participate in managing and operating that fund
and hence the Group is unable to disclose the classification of plan asset fair value in
accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of
December 31, 2018 and 2017 is given in the Annual Labor Retirement Fund Utilisation
Report announced by the government.
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233
(f) The principal actuarial assumptions used were as follows:

31, 2018 31, 2017
Discount rate 0%~8% 0%~7.3%
Future salary increases 0%~10% 0.5%~11%
Assumptions regarding future mortality experience are set based on actuarial advice in
accordance with published statistics and experience in each territory.
Because the main actuarial assumption changed, the present value of defined benefit
obligation is affected. The analysis was as follows:
Discount rate Future salary increases
Increase Decrease Increase Decrease
0.015%~1.00% 0.015%~1.00% 0.25%~1.00% 0.25%~1.00%
December 31, 2018
Effect on present value of
defined benefit obligation ( 147,753) 157,779 104,371 ( 94,424)
Increase Decrease Increase Decrease
0.025%~1.00% 0.025%~1.00% 0.25%~1.00% 0.25%~1.00%
December 31, 2017
defined benefit obligation ( 150,553) 161,436 108,296 ( 98,285)
The sensitivity analysis above is based on one assumption which changed while the other
conditions remain unchanged. In practice, more than one assumption may change all at once.
The method of analysing sensitivity and the method of calculating net pension liability in the
balance sheet are the same.
(g) Expected contributions to the defined benefit pension plans of the Company and its
subsidiary-TTSC for the year ending December 31, 2018 amounts to $121,399.
(h) As of December 31, 2018, the weighted average duration of the retirement plan is 10 ~25
years.
B. (a) Effective July 1, 2005, the Company and its domestic subsidiary-TTSC have established a
defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the“Act”),
covering all regular employees with R.O.C. nationality. Under the New Plan, the Company
and its domestic subsidiary-TTSC contribute monthly an amount based on 6% of the
employees’ monthly salaries and wages to the employees’ individual pension accounts at the
Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon
termination of employment.
(b) The pension costs under defined contribution pension plans of the Group for the years ended
December 31, 2018 and 2017 were $241,026 and $186,442, respectively.
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2018 Annual Report
(17) Capital stock

A. As of December 31, 2018, the Company’s authorized capital was $50,000,000, and the paid-in
capital was $ 45,129,738, consisting of 4,512,974 thousand shares of common stocks with a par
value of $10 (in dollars) per share. All proceeds from shares issued have been collected.
B. On August 11, 2017, the Board of Directors of the Company resolved to increase capital by
$5,000,000 by issuing 500,000 thousand shares at a par value of NT$10. Of which 50,000
thousand shares are reserved for employee stock purchase plan. The proposal of capital increase
has been reported and become effective on December 5, 2017. The total amount of shares was
$7,711,222. All proceeds from share issuance was completed on December 27, 2017.
C. The stockholders at their annual stockholders meeting on June 21, 2018, resolved to issue 200,618
thousand shares through capitalization of unappropriated retained earnings of $2,006,178. The
proposal of the capitalisation of earnings was filed online with the Securities and Futures Bureau
of the Financial Supervisory Commission and went into effect on July 31, 2018. The Company
had filed registration of the capital increase through capitalisation of earnings with the Ministry
of Economic Affairs on September 18, 2018.
D. On August 13, 2018, the Board of Directors of the Company resolved to increase capital by
$3,000,000 by issuing 300,000 thousand shares at a par value of NT$10. Of which 30,000
thousand shares are reserved for employee stock purchase plan. The proposal of capital increase
has been reported and become effective on November 28, 2017. The total amount of shares was
$3,226,890. All proceeds from share issuance was completed on December 21, 2018.
(18) Capital surplus
Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par
value on issuance of common stocks and donations can be used to cover accumulated deficit or to
issue new stocks or cash to shareholders in proportion to their share ownership, provided that the
Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires
that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the
paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the
legal reserve is insufficient.
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235
2018
Adjustments to
Employe share of changes
stock in equity of
Share options associates and Donated
premium exercised joint ventures assets Others
At January 1, 2018 $ 8,606,393 $ 76,280 $ 2,148,243 $ 446 $ 6,713
Issuance of common stock
for cash 226,890 17,610 - - -
Recognition of change in equity
of associates in proportion to
the Company's ownership - - ( 23,430) - -
At December 31, 2018 $ 8,833,283 $ 93,890 $ 2,124,813 $ 446 $ 6,713
2017
Adjustments to
Employe share of changes
stock in equity of
Share options associates and Donated
premium exercised joint ventures assets Others
At January 1, 2017 $ 5,895,171 $ - $ 2,086,684 $ 446 $ 6,713
for cash 2,711,222 76,280 - - -
Recognition of change in equity
of associates in proportion to
the Company's ownership - - 61,559 - -
At December 31, 2017 $ 8,606,393 $ 76,280 $ 2,148,243 $ 446 $ 6,713
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2018 Annual Report
(19) Retained earnings

2018 2017
At January 1 $ 6,769,575 ($ 4,248,211)
Retrospective application 276,681 -
Balance at 1 January after adjustments 7,046,256 ( 4,248,211)
Profit for the year 293,919 7,005,171
Legal reserve used to cover
accumulated deficits - 4,248,211
Distribution of 2017 earnings ( 3,509,166) -
Remeasurement on post employment
benefit obligations, net of tax ( 71,341) ( 235,596)
Adjustments to share of changes in
equity of associates and joint ventures 3,537 -
Disposal of investments in equity
instruments designated at fair value
13,438 -
At December 31 $ 3,776,643 $ 6,769,575
A. According to the Company’s Articles of Incorporation, if there is any profit for a fiscal year, the
Company shall first make provision for all taxes and cover prior years’ losses and then
appropriate 10% of the residual amount as legal reserve. Dividends shall be proposed by the
Board of Directors and resolved by the stockholders.
B. Dividend policy
In order to facilitate future expansion plans, dividends to stockholders are distributed mutually
in the form of both cash and stocks with the basic principle that the ratio of cash dividends to
total stock dividends shall not be lower than 10%.
C. Legal reserve
Except for covering accumulated deficit or issuing new stocks or cash to shareholders in
proportion to their share ownership, the legal reserve shall not be used for any other purpose. The
use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share
ownership is permitted, provided that the distribution of the reserve is limited to the portion in
excess of 25% of the Company’s paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit
balance on other equity items at the balance sheet date before distributing earnings. When debit
balance on other equity items is reversed subsequently, the reversed amount could be included
in the distributable earnings.
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237
E. (a) For the year ended December 31, 2016, the Company incurred accumulated deficit. On June
22, 2017, the Board of Directors proposed to cover the accumulated deficit totaling $4,248,211
with the legal reserve.
. (b) The appropriation of earnings of year 2017 as resolved by the Board of Directors on June 21,
2018 is as follows:

Dividend per share
Amount (in dollars)
Accrual of legal reserve $ 700,517
Appropriation of cash dividends
$ 802,471 $ 0.2
to shareholders
Appropriation of stock dividends
$ 2,006,178 $ 0.5
to shareholders
F. The appropriation of earnings of year 2018 as resolved by the Board of Directors on March 22,
2019 is as follows:

Dividend per share
Amount (in dollars)
Appropriation of cash dividends
$ - $ -
to shareholders
Appropriation of stock dividends
$ - $ -
to shareholders
As of March 22, 2019, the above-mentioned 2018 earnings appropriation had not been resolved
by the stockholders.
G. For information relating to employees’ and directors’ remuneration, please refer to Note 6(27).
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2018 Annual Report
(20) Other equity items
Unrealised
gains (losses) Hedging Currency
on valuation reserve translation Total
At January 1, 2018 $ 1,833,339 ($ 15,912) ($ 1,135,114) $ 682,313
Effects of retrospective ( 279,677) - - ( 279,677)
application
Balance at January 1 after $ 1,553,662 ($ 15,912) ($ 1,135,114) $ 402,636
retrospective adjustments
Revaluation – gross ( 316,044) - - ( 316,044)
Revaluation – tax 6,210 - - 6,210
Revaluation – associates 8,463 - - 8,463
Revaluation transferred to
retained earnings – gross ( 13,438) - - ( 13,438)
retained earnings – associates ( 4,628) - - ( 4,628)
Cash flow hedges:
– Fair value loss in the period
– Associates - ( 42,737) - ( 42,737)
Currency translation differences:
– Group - - 1,004,409 1,004,409
– Group – tax - - 746 746
– Associates - - 147,539 147,539
At December 31, 2018 $ 1,234,225 ($ 58,649) $ 17,580 $ 1,193,156
Unrealised
At January 1, 2017 $ 1,703,161 ($ 67,895) $ 1,254,622 $ 2,889,888
Revaluation – gross 103,585 - - 103,585
Revaluation – tax ( 8,110) - - ( 8,110)
Cash flow hedges:
– Fair value gain in the period
– Associates - 51,983 - 51,983
– Group - - ( 2,046,070) ( 2,046,070)
– Group – tax - - 2,296 2,296
– Associates - - ( 345,962) ( 345,962)
At December 31, 2017 $ 1,833,339 ($ 15,912) ($ 1,135,114) $ 682,313
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239
(21) Operating revenue

Year ended December
31, 2018
Revenue from contracts with customers $ 167,647,073
Other - ship rental and slottage income 1,589,580
$ 169,236,653
A. Disaggregation of revenue from contracts with customers
The Group derives revenue from the transfer of services over time and at a point in time in the
following major businesses:
Year ended
December 31, 2018 Ship-owners Agent Terminal Other Total
Total segment $ 182,903,835 $ 2,894,849 $ 7,150,737 $ 506,701 $ 193,456,122
revenue
Inter-segment
revenue ( 25,809,049) - - - ( 25,809,049)
Revenue from
external customer
contracts $ 157,094,786 $ 2,894,849 $ 7,150,737 $ 506,701 $ 167,647,073
B. Contract assets and liabilities
The Group has recognised the following revenue-related contract assets and liabilities:
December 31, 2018
Contract assets:
Contract assets relating to marine freight income $ 2,244,065
Contract liabilities:
Contract liabilities – unearned marine freight income ($ 1,774,392)
Revenue recognised that was included in the contract liability balance at the beginning of the
period
Year ended December
31, 2018
Marine freight income $ 2,523,101
C. Related disclosures for 2017 operating revenue are provided in Note 12(5) B.
(22) Other income and expenses, net
31, 2018 31, 2017
Gains on disposal of property, plant
and equipment $ 1,510,330 $ 501,784
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2018 Annual Report
(23) Other income

31, 2018 31, 2017
Interest income
Interest income from bank deposits $ 561,404 $ 434,615
Interest income from financial assets
measured at amortised cost 2,200 -
other than financial assets at fair
value through profit or loss - 2,339
Rent income 284,183 127,807
Dividend income 109,996 117,436
Gain recognised in bargain purchase
transaction 138,571 5,983
Other income, others 376,810 266,126
$ 1,473,164 $ 954,306
(24) Other gains and losses

31, 2018 31, 2017
(Losses) gains on disposal of ($ 122,834) $ 612,704
investments
Net currency exchange gains 308,013 51,516
Depreciation on investment property ( 132,980) ( 28,516)
Other non-operating expenses ( 130,099) ( 62,810)
($ 77,900) $ 572,894
(25) Finance costs

31, 2018 31, 2017
Interest expense:
Bank loans $ 1,942,785 $ 1,417,937
Corporate bonds 92,859 69,863
Other 6 -
2,035,650 1,487,800
Less: Capitalisation of qualifying assets ( 155,226) ( 107,084)
Finance costs $ 1,880,424 $ 1,380,716
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241
(26) Expenses by nature

31, 2018 31, 2017
Employee benefit expense $ 7,823,668 $ 6,932,955
Depreciation charges on property,
plant and equipment 8,670,560 7,663,183
Amortisation charges on intangible
assets 69,348 38,375
Other operating costs and expenses 153,262,568 131,617,656
$ 169,826,144 $ 146,252,169
(27) Employee benefit expense
31, 2018 31, 2017
Wages and salaries $ 6,452,284 $ 5,770,241
Labor and health insurance fees 534,619 440,465
Pension costs 443,470 391,799
Other personnel expenses 393,295 330,450
$ 7,823,668 $ 6,932,955
A. According to the Articles of Incorporation of the Company, when distributing earnings, the
Company shall distribute bonus to the employees that account for no less than 0.5% and pay
remuneration to the directors and supervisors that account for no more than 2% of the total
distributed amount.
B. (a) For the year ended December 31, 2018, employees’ compensation was accrued at $2,560,
while directors’ remunerations were accrued at $0. The aforementioned amount was
recognised in salary expenses.
(b) The employees’ compensation and directors’ remuneration were estimated and accrued based
on 0.5% and 0% of distributable profit of current year for the year ended December 31, 2018.
(c) For the year ended December 31, 2017, employees’ compensation was accrued at $36,322,
while directors’ and supervisors’ remunerations were accrued at $10,207. The aforementioned
amounts were recognised in salary expenses.
Employees’ compensation and directors’ and supervisors’ remuneration of 2017 as resolved
by the Board of Directors were in agreement with those amounts recognised in the 2017
Information about the appropriation of employees’, directors’ and supervisors’ remuneration
by the Company as proposed by the Board of Directors and resolved by the stockholders will
be posted in the “Market Observation Post System” at the website of the Taiwan Stock
Exchange.
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2018 Annual Report
(28) Income tax

A. Income tax expense
(a)Components of income tax expense:
31, 2018 31, 2017
Current tax:
Current tax on profits for the period $ 907,890 $ 629,009
Tax on undistributed surplus earnings 283,973 -
Alternative MinimumTax - 31,399
Prior year income tax overestimation ( 8,780) ( 32,894)
Total current tax 1,183,083 627,514
Deferred tax:
Origination and reversal of
temporary differences ( 108,897) 155,464
Impact of change in tax rate 42,717 2,950
Total deferred tax ( 66,180) 158,414
Income tax expense $ 1,116,903 $ 785,928
(b)The income tax (charge)/credit relating to components of other comprehensive income is as

follows:
31, 2018 31, 2017
Changes in fair value of financial
assets at fair value through other $ 12,465 $ -
Fair value gains/losses on available-
for-sale financial assets - ( 8,125)
Exchange differences on translating
the financial statements of foreign
operations ( 33) 2,296
Remeasurement of defined benefit
obligations 5,063 16,942
Impact of change in tax rate 6,387 -
$ 23,882 $ 11,113
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243
(c)The income tax charged/(credited) to equity during the period is as follows:

31, 2018 31, 2017
Reduction in capital surplus caused
by recognition of foreign investees
based on the shareholding ratio ($ 115) ($ 95)
Reduction in retained earnings caused
based on the shareholding ratio 146 -
Effects of retrospective application 182 -
Impact of change in tax rate 95 -
$ 308 ($ 95)
B. Reconciliation between income tax expense and accounting profit:
31, 2018 31, 2017
Tax calculated based on profit before
tax and statutory tax rate $ 1,051,440 $ 1,823,489
Expenses disallowed by tax regulation 29,891 19,362
Tax exempt income by tax regulation ( 324,906) ( 1,028,143)
Effect from investment tax credits 41,966 ( 42,068)
Change in assessment of realisation
of deferred tax assets ( 246) -
Prior year income tax overestimation ( 8,780) ( 32,894)
Effect from Alternative Minimum Tax - 31,399
Effect from changes in tax regulation 42,717 2,950
Tax on undistributed earnings 283,973 -
Effect from income tax deduction
from prior years 21,272 7,984
Effect of defferd tax from prior year
income tax underestimation - 3,849
Other ( 20,424) -
Income tax expense $ 1,116,903 $ 785,928
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244
2018 Annual Report
C. Amounts
C. Amounts of deferred
of deferred taxtax assetsororliabilities
assets liabilitiesas
as aa result
result of
of temporary
temporarydifferences,
differences,taxtax
losses andand
losses
investment
investment tax tax credits
credits areare
as as follows:
follows:
2018
2018
Recognised
Recognised
Recognised in other
Recognised in other
in profit or comprehensive Recognised Translation Business
January 1 in profit
lossor comprehensive
income Recognised
in equity Translationcombination
differences BusinessDecember 31
Temporary differences: January 1 loss income in equity differences combination December 31
Temporary differences:
Deferred tax assets:
Deferred tax expense
Bad debts assets: $ 16,047 $ 2,470 $ - $ 182 ($ 182) $ - $ 18,517
Loss expense
Bad debts on valuation of $ 16,047 $ 2,470 $ - $ 182 ($ 182) $ - $ 18,517
Loss onfinancial assets
valuation of 1,979 - ( 1,979) - - - -
Deferred profit from
financial assets 1,979 - ( 1,979) - - - -
disposal of loading and
unloading equipment 13,918 671 - - - - 14,589
Unrealized expense 30,185 5,976 - - ( 269) - 35,892
unloading equipment 13,918 671 - - - - 14,589
Unrealized exchange loss 40,741 ( 11,862) - - 89 - 28,968
Unrealized expense 30,185 5,976 - - ( 269) - 35,892
Pension expense and
Unrealized exchange
actuarial loss
losses/(gains) 40,741
369,659( 11,862)
7,258 16,126- -- ( 1,726)89 - - 28,968
391,317
Pension expense
Others and 275 621 - - 183 - 1,079
actuarial losses/(gains)
Net operating loss 369,659 7,258 16,126 - ( 1,726) - 391,317
Others carryforward 193,394
275 152,432
621 -- -- ( 209)
183 - - 345,6171,079
Investment
Net operating tax credits
loss 42,068 ( 42,068) - - - - -
carryforward
Subtotal $ 708,266
193,394 $ 152,432
115,498 $ 14,147- $ 182 - ($( 2,114)
209)$ - $- 835,979
345,617
Investment tax credits
Deferred tax liabilities: 42,068 ( 42,068) - - - - -
Temporary differences: $ 708,266 $ 115,498 $
Subtotal 14,147 $ 182 ($ 2,114) $ - $ 835,979
Gain on
Deferred valuation
tax of
liabilities:
financial assets $ - $ - ($ 4,371) $ - $ - $ - ($ 4,371)
Unrealized exchange gain ( 584) 462 - - 4 - ( 118)
Gain on valuation of
Unrealized gain ( 5,019) ( 161) - - 164 - ( 5,016)
financial assets $ - $ - ($ 4,371) $ - $ - $ - ($ 4,371)
Pension expense and
Unrealized exchange gain
actuarial losses/(gains) ( ( 584)
617) 462 - -- -- 126 4 - (- ( 491)118)
Unrealized gain ( 5,019) ( 161) - - 164 - ( 5,016)
Foreign investment income
Pension expense and ( 768,141) ( 45,996) 14,106 126 354 - ( 799,551)
Others
actuarial losses/(gains) ( ( 617) (
974,659) 3,623)
- -- -- ( 32,458)
126( 150,280) ( - 1,161,020)
( 491)
Subtotal ($1,749,020) ($ 49,318) $ 9,735 $ 126 ($ 31,810) ($ 150,280) ($ 1,970,567)
Foreign investment income
Total ( 768,141)
($ ( $ 45,996)
1,040,754) 66,180 $ 14,106
23,882 $ 126 ($
308 354($ 150,280) ($- 1,134,588)
33,924) ( 799,551)
Others ( 974,659) ( 3,623) - - ( 32,458) ( 150,280) ( 1,161,020)
Subtotal ($1,749,020) ($ 49,318) $ 9,735 $ 126 ($ 31,810) ($ 150,280) ($ 1,970,567)
Total ($1,040,754) $ 66,180 $ 23,882 $ 308 ($ 33,924) ($ 150,280) ($ 1,134,588)
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245
2017
Recognised
Recognised in other
in profit or comprehensive Recognised Translation Business
January 1 loss income in equity differences combination December 31
Deferred tax assets:
Bad debts expense $ 14,493 $ 1,501 $ - $ - $ 53 $ - $ 16,047
Loss on valuation of
financial assets 1,766 - 209 - 4 - 1,979
unloading equipment 16,708 ( 2,790) - - - - 13,918
Unrealized expense 32,248 ( 1,301) - - ( 762) - 30,185
Unrealized exchange loss 50,198 ( 9,482) - - 25 - 40,741
Pension expense and
actuarial losses/(gains) 365,725 ( 13,376) 15,284 - 2,026 - 369,659
Others 4,165 ( 3,706) - - ( 184) - 275
Net operating loss
carryforward 176,711 16,474 - - 209 - 193,394
Investment tax credits - 42,068 - - - - 42,068
Subtotal $ 662,014 $ 29,388 $ 15,493 $ - $ 1,371 $ - $ 708,266
Deferred tax liabilities:
Gain on valuation of
financial assets $ - $ - $ - $ - $ - $ - $ -
Unrealized exchange gain ( 20,999) 20,112 - - 303 - ( 584)
Unrealized gain ( 5,833) 454 - - 360 - ( 5,019)
Pension expense and
actuarial losses/(gains) ( 233) - ( 133) - ( 251) - ( 617)
Foreign investment income ( 558,247) ( 207,171) ( 4,247) ( 95) 1,619 - ( 768,141)
Others ( 47,870) ( 1,197) - - 22,026 ( 947,618) ( 974,659)
Subtotal ($ 633,182) ($ 187,802) ($ 4,380) ($ 95) $ 24,057 ($ 947,618) ($ 1,749,020)
Total $ 28,832 ($ 158,414) $ 11,113 ($ 95) $ 25,428 ($ 947,618) ($ 1,040,754)
~75~
246
2018 Annual Report
D.
D.
D.Details
Details
Detailsof
of
ofthe
the
theamount
amount
amountthethe
theCompany
Company
Companyisis
isentitled
entitled
entitledas
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asinvestment
investment
investmenttax
tax
taxcredit
credit
creditand
and
andunrecognised
unrecognised
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tax
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As
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ofDecember
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December31, 31,
31,2018None.
2018None.
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December
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December31,31,
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2017
2017
Unused
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tax Unrecognised
Unrecognised
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items
items credits
credits
credits deferred
deferredtax
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assets Expiry
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year
year
Investments
Investmentsin
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inemerging
emerging
emerging
important
importantstrategic
important strategic
strategicindustries
industries
industries $$$ 42,068
42,068 $$$
42,068 --- 2020
2020
2020
E.
E.
E. Expiration
Expiration
Expiration dates
dates
dates of
of
of unused
unused
unused tax
tax
tax losses
losses
losses and
and
and amounts
amounts
amounts of
of
of unrecognised
unrecognised
unrecognised deferred
deferred
deferred tax
tax
tax assets
assets
assets are
are
are as
as
as
follows:
follows:
follows:
December
December
December31,
31,
31,2018
2018
2018
Unrecognised
Unrecognised
Unrecognised
Amount
Amount
Amountfiled/
filed/
filed/ deferred
deferred
deferredtax
tax
tax
Year
Year
Yearincurred
incurred
incurred assessed
assessed
assessed Unused
Unused
Unusedamount
amount
amount assets
assets
assets Expiry
Expiry
Expiryyear
year
year
2018
2018
2018 $$$ 671,047
671,047
671,047 $$$ 671,047
671,047
671,047 $$$ --- 2028
2028
2028
2017
2017
2017 40,204
40,204
40,204 40,204
40,204
40,204 --- 2027
2027
2027
2016
2016
2016 747,045
747,045
747,045 747,045
747,045
747,045 --- 2026
2026
2026
2015
2015
2015 269,787
269,787
269,787 269,787
269,787
269,787 --- 2025
2025
2025
$$$ 1,728,083
1,728,083
1,728,083 $$$ 1,728,083
1,728,083
1,728,083 $$$ ---
December
December31,
December 31,
31,2017
2017
2017
Unrecognised
Unrecognised
Unrecognised
deferred
deferredtax
deferred tax
tax
Year
Year
Yearincurred
incurred
incurred Amount
Amount
Amountfiled
filed
filed Unused
Unused
Unusedamount
amount
amount assets
assets
assets Expiry
Expiry
Expiryyear
year
year
2017
2017
2017 $$$ 116,177
116,177 $$$
116,177 116,177
116,177
116,177 $$$ --- 2027
2027
2027
2016
2016
2016 747,045
747,045
747,045 747,045
747,045
747,045 --- 2026
2026
2026
2015
2015
2015 269,787
269,787
269,787 269,787
269,787
269,787 --- 2025
2025
2025
$$$ 1,133,009
1,133,009 $$$
1,133,009 1,133,009
1,133,009
1,133,009 $$$ ---
F.
F.
F.The
The
The Company
Company
Companyhas has
has not
not
not recognised
recognised
recognised taxable
taxable
taxable temporary
temporary
temporarydifferences
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differences associated
associated
associated with
with
with investment
investment
investment in
in
in
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subsidiaries
subsidiaries as
as
as deferred
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tax
tax liabilities.
liabilities.
liabilities. As
As
As ofof
of December
December
December 31, 31,
31, 2018
2018
2018 and
and
and 2017,
2017,
2017, the
the
the amounts
amounts
amounts of
of
of
temporary
temporary
temporarydifference
difference
differenceunrecognised
unrecognised
unrecognisedas as
asdeferred
deferred
deferredtax
tax
taxliabilities
liabilities
liabilitieswere
were
were$13,656,982
$13,656,982
$13,656,982and
and
and$13,018,477,
$13,018,477,
$13,018,477,
respectively.
respectively.
respectively.
G.
G.The
G. TheCompany’s
The Company’sincome
Company’s incometax
income taxreturns
tax returnsthrough
returns through2016
through 2016have
2016 havebeen
have beenassessed
been assessedand
assessed andapproved
and approvedby
approved bythe
by theTax
the Tax
Tax
Authority.
Authority.
Authority.
~76~
~76~
~76~
247
H. Under the amendments to the Income Tax Act which was promulgated by the President of the
Republic of China in February, 2018, the Company’s applicable income tax rate was raised from
17% to 20% effective from January 1, 2018. The Group has assessed the impact of the change in
income tax rate.
I. The impact of the change in tax rate was primarily from the tax bill signed into law by the President
of the United States on December 22, 2017 (Taiwan time), which lowered the corporate income
tax rate from 35% to 21%. The Group has assessed the impact of the change in income tax rate.
(29) Earnings (loss) per share

Weighted average
number of ordinary
shares outstanding Loss per share
Amount after tax (share in thousands) (in dollars)
Basic loss per share
Net loss attributable to
ordinary shareholders of the
parent $ 293,919 4,240,919 $ 0.07
Diluted loss per share
Net loss attributable to
parent 293,919 4,240,919
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation - 215
Net income attributable to
parent plus assumed
conversion of all dilutive
potential ordinary shares $ 293,919 4,241,134 $ 0.07
~77~
248
2018 Annual Report

Weighted average
number of ordinary
shares outstanding Earnings per share
Amount after tax (share in thousands) (in dollars)
Basic earnings per share
parent $ 7,005,171 3,726,809 $ 1.88
Diluted earnings per share
parent 7,005,171 3,726,809
shares
Employees’ compensation - 3,375
parent plus assumed
conversion of all dilutive
potential ordinary shares $ 7,005,171 3,730,184 $ 1.88
(30) Transactions with non-controlling interest

A. Acquisition of additional equity interest in a subsidiary
(a) Subsidiary, Peony, purchased 32.5% of outstanding shares of EMA for cash of $44,940
(approx. USD 1,461) on December 28, 2018. The carrying amount of non-controlling interest
in Island was $41,019 at the acquisition date. This transaction resulted in a decrease in the
non-controlling interest by $41,019 and a decrease in the equity attributable to owners of the
parent by $3,921.
~78~
249
(b) Subsidiary, Everport Terminal Service Inc., purchased 49% of outstanding shares of Island
for cash of $262,927 (approx. USD 8,853) on January 1, 2018. The carrying amount of non-
controlling interest in Island was $223,006 at the acquisition date. This transaction resulted
in a decrease in the non-controlling interest by $223,006 and a decrease in the equity
attributable to owners of the parent by $39,921.
(c) Subsidiary, Peony Investment, purchased 34% of outstanding shares of subsidiary, EGT, for
cash of $22,845 (approx. USD 769) on December 31, 2017. The carrying amount of non-
controlling interest in EGT was $15,311 at the acquisition date. This transaction resulted in a
decrease in the non-controlling interest by $15,311 and a decrease in the equity attributable
to owners of the parent by $7,534.
(d) Subsidiary, Peony Investment, purchased 45% of outstanding shares of subsidiary, EES, for
cash of $85,393 (approx. USD 2,875) on December 31, 2017. The carrying amount of non-
controlling interest in EES was $86,620 at the acquisition date. This transaction resulted in a
decrease in the non-controlling interest by $86,620 and an increase in the equity attributable
to owners of the parent by $1,227.
B. The effect of changes in interests in EMA,ETS, EGT and EES on the equity attributable to owners
of the parent for the years ended December 31, 2018 and 2017 are shown below:
31, 2018 31, 2017
Carrying amount of non-controlling $ 264,025 $ 101,931
interest acquired
Consideration paid to non-controlling
interest ( 307,867) ( 108,238)
Capital surplus
- difference between proceeds on
actual acquisition of or disposal
of equity interest in a subsidiary
and its carrying amount ($ 43,842) ($ 6,307)
~79~
250
2018 Annual Report
(31) Business combinations

A. On December 14, 2018, subsidiary, EGH, acquired 100% of the shares of HMH for cash of
$3,265,341 (approx. USD 105,808) and obtained control of the company. The company primarily
provides shipping agency services. As a result of the acquisition, the Group is expected to
strengthen our foothold in the Greater China market and expand our shipping agency and other
related businesses in the region.
B. On January 1, 2018, subsidiary, Peony Investment, acquired 51% of the shares of EGV for cash
of $10,603 (approx. USD 357). Peony Investment has a 49% equity interest before acquiring
these 51% equity interests, therefore, Peony owns 100% of the shares of EGV after the
acquisition and has control of EGV. The company primarily provides cargo and shipping agency
services in Malaysia. As a result of the acquisition, the Group is expected to increase its presence
in these markets. It also expects to reduce costs through economies of scale.
C. On December 18, 2017, the Company and Peony Investment acquired 80% of the shares of EGH
for cash of $6,452,225 and obtained control of the company. The company primarily provides
cargo services domestically and internationally and shipping agency services. As a result of the
acquisition, the Group is expected to strengthen our foothold in the Greater China market and
expand our shipping agency, liner transport, and other related businesses in the region.
D. On December 27, 2017, Peony Investment acquired 70% of the shares of EGM for cash of
$280,668. Previously, on November 30, 2017, Peony Investment received 30% of the shares of
EGM from its associate, Green Peninsula Agencies SDN. BHD., as a dividend payment.
Therefore, Peony owns 100% of the shares of EGM after the acquisition and has control of EGM.
The company primarily provides cargo and shipping agency services in Malaysia. As a result of
the acquisition, the Group is expected to increase its presence in these markets. It also expects to
reduce costs through economies of scale.
~80~
251
E. The following table summarises the consideration paid and the fair values of the assets acquired
and liabilities assumed at the acquisition date, as well as the non-controlling interest’s
proportionate share of the recognised amounts of acquiree’s identifiable net assets at the
acquisition date:
31, 2018 31, 2017
Purchase consideration
Cash paid $ 3,275,944 $ 6,732,893
Fair value of equity interest in EGM
held before the business combination 10,187 120,287
Non-controlling interest’s proportionate
share of the recognised amounts of
acquiree’s identifiable net assets
- 1,613,445
3,286,131 8,466,625
Fair value of the identifiable assets
acquired and liabilities assumed
Cash and cash equivalents 640,114 1,626,514
Notes receivable - 21,411
Accounts receivable 1,025,835 1,654,816
Prepayments 18,606 357,931
Other receivables 59,248 38,375
Inventories - 50,253
Other current assets 106,692 1,415,204
Investments accounted for using
equity method 87,092 4,195
Property, plant and equipment, net 211,222 5,764,793
Investment property, net 962,109 3,119,127
Intangible assets 2,144,086 75,928
Other non-current assets 15,777 148,991
Accounts payable ( 268,226) ( 2,006,696)
Other payables ( 235,433) ( 241,970)
Current income tax liabilities ( 27,462) ( 215,017)
Other current liabilities ( 944,979) ( 1,805,049)
Long-term loans ( 131,261) ( 534,492)
Deferred income tax liabilities ( 150,280) ( 947,618)
Other non-current liabilities ( 224,773) ( 54,088)
Total identifiable net assets 3,288,367 8,472,608
Goodwill / Gain from bargain purchase ($ 2,236) ($ 5,983)
~81~
252
2018 Annual Report
The following table summarises the amounts of goodwill and gain from bargain purchase by
company:
31, 2018 31, 2017
HMH ($ 8,848) $ -
EGV 6,612 -
EGH - ( 1,553)
EGM - ( 4,430)
($ 2,236) ($ 5,983)
F. As at December 31, 2018 and 2017, the fair value of the acquired identifiable intangible assets –
customer relationship were estimated to be $2,143,384 and $75,928, respectively.
G. The Group originally held 49% of share ownership in EGV before the business combination.
Loss on remeasurement of fair value amounted to $119,908.
H. The Group originally held 30% of share ownership in EGM before the business combination.
Gain on remeasurement of fair value amounted to $30,253.
I. The subsidiary, EGH, consolidated HMH as of December 14, 2018, and HMH contributed
operating income and pre-tax loss of $6,807 and $115,535, respectively. Had EGH been
consolidated from January 1, 2018, the consolidated statement of comprehensive income for the
year ended December 31, 2018 would show operating revenue and loss before income tax of
$1,183,972 and $545,887, respectively.
J. The Company and subsidiary, Peony Investment, consolidated EGH as of December 18, 2017,
and EGH contributed operating income and pre-tax loss of $317,144 and $28,251, respectively.
Had EGH been consolidated from January 1, 2017, the consolidated statement of comprehensive
income for the year ended December 31, 2017 would show operating revenue and loss before
income tax of $2,340,377 and $455,118, respectively.
K. Peony Investment consolidated EGM as of December 27, 2017, and EGM contributed operating
income and pre-tax loss of $3,531 and $331, respectively. Had EGM been consolidated from
January 1, 2017, the consolidated statement of comprehensive income for the year ended
December 31, 2017 would show operating revenue and profit before income tax of $341,516 and
$98,988, respectively.
~82~
253
(32) Supplemental cash flow information

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

31, 2018 31, 2017
Purchase of property, plant and
$ 10,041,327 $ 1,602,423
equipment
Add: Opening balance of payable
on equipment 58,347 15,693
Less: Ending balance of payable
on equipment ( 34,258) ( 58,347)
Cash paid during the period $ 10,065,416 $ 1,559,769
B. Prepayments for equipment (recorded as other non-current assets)

31, 2018 31, 2017
Purchase of prepayments for
equipment $ 14,606,580 $ 5,615,770
on prepayments for
equipment 4,638 124,787
on prepayments for
equipment ( 194) ( 4,638)
Capitalisation of qualifying
assets ( 155,226) ( 107,084)
Cash paid during the period $ 14,455,798 $ 5,628,835
C. Intangible assets
31, 2018 31, 2017
Purchase of intangible assets $ 29,380 $ 7,397
on intangible assets - 48,347
on intangible assets - -
Cash paid during the period $ 29,380 $ 55,744
~83~
254
2018 Annual Report
D. Investments accounted for using equity method

31, 2018 31, 2017
Purchase of investments
$ 1,003,740 $ -
accounted for using equity method
on capital stock ( 23,166) -
on capital stock - -
Cash paid during the period $ 980,574 $ -
E. The balances of the assets and liabilities of consolidated subsidiaries for the current period are as
follows:
Year ended December
January 1, 2018 31, 2017
Cash and cash equivalents $ 640,114 $ 1,626,514
Notes receivable - 21,411
Prepayments 18,606 357,931
Other receivables 59,248 38,375
Inventories - 50,253
Other current assets 106,692 1,415,204
Investments accounted for using
87,092 4,195
equity method
Property, plant and equipment, net 211,222 5,764,793
Investment property, net 962,109 3,119,127
Intangible assets 2,144,086 75,928
Deferred income tax assets - 142,849
Other non-current assets 15,777 6,142
Accounts payable ( 268,226) ( 2,006,696)
Other payables ( 235,433) ( 241,970)
Current income tax liabilities ( 27,462) ( 215,017)
Other current liabilities ( 944,979) ( 1,805,049)
Long-term loans ( 131,261) ( 534,492)
Deferred income tax liabilities ( 150,280) ( 947,618)
Other non-current liabilities ( 224,773) ( 54,088)
Goodwill/Gain from bargain purchase ( 2,236) ( 5,983)
$ 3,286,131 $ 8,466,625
Cash paid for the acquisition $ 3,275,944 $ 6,732,893

Cash and cash equivalents ( 640,114) ( 1,626,514)
Net cash paid for the acquisition $ 2,635,830 $ 5,106,379
~84~
255
F. Change in non-controlling interest

31, 2018 31, 2017
Change in transactions with $ 1,167,819 $ 108,238
non-controlling interest
Add: Opening balance of payable - -
on investments
Less: Ending balance of payable - ( 22,845)
on investments
Add: Acquired from business
combinations 48,163 -
Cash paid during the period $ 1,215,982 $ 85,393
(33) Changes in liabilities from financing activities
Long-term borrowings
At January 1, 2018 $ 81,487,631
Changes in cash flow from financing activities 16,260,197
Acquired from business combinations 131,261
Impact of changes in foreign exchange rate 1,481,412
At December 31, 2018 $ 99,360,501
~85~
256
2018 Annual Report
7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and their relationship with the Group
Names of related parties Relationship with the Group
Evergreen International Storage and Transport Corp. Associate
Eva Airways Corp. Associate
Evergreen Security Corp. Associate
Charng Yang Development Co., Ltd. Associate
Taipei Port Container Terminal Corp. Associate
Ningbo Victory Container Co. Ltd. Associate
Qingdao Evergreen Container Storage & Transportation Co. Ltd. Associate
Evergreen Marine (Latin America) S.A. Associate
Green Peninsula Agencies SDN.BHD Associate
Luanta Investment (Netherlands) N.V. Associate
Balsam Investment (Netherlands) N.V. Associate
Italia Marittima S.p.A. Associate
Colon Container Terminal S.A. Associate
PT. Evergreen Shipping Agency Indonesia Associate
Other related party
Evergreen Shipping Agency (Vietnam) Corp. (A subsidiary since
January 1, 2018)
Evergreen Shipping Agency Co. (U.A.E) LLC Associate
Evergreen International Corp. Other related party
Evergreen Airline Service Corp. Other related party
Chang Yung-Fa Charity Foundation Other related party
Chang Yung-Fa Foundation Other related party
Eever Accord Construction Corporation Other related party
Evergreen Aviation Technologies Corporation Other related party
Evergreen Sky Catering Corporation Other related party
Evergreen Air Cargo Services Corporation Other related party
Evergreen Aviation Precision Corporation Other related party
Evergreen International S.A. Other related party
Evergreen Marine (Singapore) Pte. Ltd. Other related party
Gaining Enterprise S.A. Other related party
Eevergreen Insurance Company Limited Other related party
Evergreen Shipping Agency (America) Corporation Other related party
Evergreen Shipping Agency (Japan) Corporation Other related party
Evergreen Shipping Agency (Philippines) Corporation Other related party
Evergreen International Myanmar Co., Ltd. Other related party
Other related party
Evergreen Marine (Hong Kong) Ltd. (A subsidiary since
December 18, 2017)
~86~
257
(2) Significant related party transactions and balances

A. Operating revenue:
31, 2018 31, 2017
Sales of services:
Associates $ 2,830,008 $ 3,191,386
Other related parties 10,452,502 10,692,025
$ 13,282,510 $ 13,883,411
The business terms on which the Group transacts with related parties are of no difference from
those with non-related parties.
B. Purchases:
31, 2018 31, 2017
Purchases of services:
Associates $ 3,293,741 $ 3,717,601
$ 10,775,274 $ 11,416,105
Goods and services are purchased from associates and other related parties on normal commercial
terms and conditions.
C. Receivables from related parties :
. December 31, 2018 December 31, 2017

Accounts receivable:
Associates $ 115,875 $ 162,609
Other related parties 387,763 631,012
Subtotal $ 503,638 $ 793,621
Other receivables:
Associates
-Other $ 1,626 $ 3,038
Other related parties
-EIC 179,661 162,433
-Other 8,402 48,789
Subtotal $ 189,689 $ 214,260
Total $ 693,327 $ 1,007,881
The receivables from related parties arise mainly from sale transactions. The receivables are
unsecured in nature and bear no interest. The receivables include provisions against receivables
from related parties.
~87~
258
2018 Annual Report
D. Payables to related parties:

Accounts payable:
Associates $ 61,940 $ 57,279
Subtotal $ 253,172 $ 203,868
Other payables:
Associates $ 25,548 $ 11,752
Subtotal $ 181,868 $ 125,368
Total $ 435,040 $ 329,236
The payables to related parties arise mainly from purchase transactions. The payables bear no
interest.
E. Property transactions:
(a) Acquisition of property, plant and equipment:
31, 2018 31, 2017
Associates $ - $ 4,350
$ 4,805 $ 8,549
(b) Disposal of property, plant and equipment:
31, 2018 31, 2017
Disposal Gain (loss) on Disposal Gain (loss) on
proceeds disposal proceeds disposal
Other related parties $ - $ - $ 4,890 $ 746
F. Agency accounts:
Credit balance of agency accounts:
Associates ($ 170,132) ($ 196,045)
-EIC ( 382,642) ( 515,617)
-EGA ( 648,750) ( 865,521)
-EGJ ( 441,941) ( 364,482)
-Other ( 57,287) ( 28,815)
($ 1,700,752) ($ 1,970,480)
~88~
259
G. Shipowner’s accounts:
Debit balance of shipowner’s accounts:
Associates
-ITS $ 133,072 $ -
-EIS 471,267 696,616
-GESA 20,409 25,028
$ 624,748 $ 721,644

Credit balance of shipowner’s accounts:
Associates
-ITS $ - ($ 889,198)
-EMS ( 1,804,031) ( 525,647)
($ 1,804,031) ($ 1,414,845)
H. Loans to/from related parties:
(a) Loans to related parties:
i. Outstanding balance:
Associates $ 409,242 $ 272,467
ii. Interest income
31, 2018 31, 2017
Associates $ 10,314 $ 2,876
The loans to associates carry interest at floating rates for the years ended December 31, 2018
and 2017.
(b) Loans from related parties:
i. Outstanding balance:
Other related parties $ 1,002,616 $ 877,363
~89~
260
2018 Annual Report
ii.
ii.
ii.
ii.Interest
Interest
Interest
Interestexpense:
expense:
expense:
expense:
Year
Year
Year
Yearended
ended
ended
endedDecember
December
December
December Year
Year
Year
Yearended
ended
ended
endedDecember
December
December
December
31,
31,
31,
31,2018
2018
2018
2018 31,
31,
31,
31,2017
2017
2017
2017
Associates
Associates
Associates
Associates $$$$ ---- $$$$ 765
765
765
765
Other
Other
Other
Otherrelated
related
related
relatedparties
parties
parties
parties 40,026
40,026
40,026
40,026 15,401
15,401
15,401
15,401
$$$$ 40,026
40,026
40,026
40,026 $$$$ 16,166
16,166
16,166
16,166
The
The
The
Theloans
loans
loans
loansfrom
from
from
fromassociates
associates
associates
associatescarry
carry
carry
carryinterest
interest
interest
interestat at
at
atfloating
floating
floating
floatingrates
rates
rates
ratesfor
for
for
forthe
the
the
theyears
years
years
yearsended
ended
ended
endedDecember
December
December
December31,
31,
31,
31,
2018
2018
2018
2018and
and
and
and2017.
2017.
2017.
2017.
I.I.I.I.Endorsements
Endorsements
Endorsements
Endorsementsand and
and
andguarantees
guarantees
guarantees
guaranteesprovided
provided
provided
providedtoto
to
torelated
related
related
relatedparties:
parties:
parties:
parties:
.... December
December
December
December31, 31,
31,
31,2018
2018
2018
2018 December
December
December31,
December 31,
31,2017
31, 2017
2017
2017
Associates
Associates
Associates
Associates $$$$ 3,646,750
3,646,750
3,646,750
3,646,750 $$$$ 3,035,391
3,035,391
3,035,391
3,035,391
J.
J.
J.J.On
On
On
OnAugust
August
August
August11,11,
11,
11,2017,
2017,
2017,
2017,the
the
the
theBoard
Board
Board
Boardof of
of
ofDirectors
Directors
Directors
Directorsresolved
resolved
resolved
resolvedto to
to
tohave
have
have
havethethe
the
theCompany
Company
Company
Companyand and
and
andPeony
Peony
Peony
PeonyInvestment
Investment
Investment
Investment
acquire
acquire
acquire
acquire79% 79%
79%
79%andand
and
and1%,
1%,
1%,
1%,respectively,
respectively,
respectively,
respectively,of of
of
ofthe
the
the
theshares
shares
shares
sharesof of
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ofEGH
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EGHfrom from
from
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other
other
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party
party
partyEvergreen
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International
International
International
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S.A.
S.A.The
The
The
Theacquisition
acquisition
acquisition
acquisitiondate
date
date
datewas
was
was
wasDecember
December
December
December18, 18,
18,
18,2017,
2017,
2017,
2017,andand
and
andthe
the
the
thetransaction
transaction
transaction
transactionamount
amount
amount
amountwaswas
was
was
$6,452,225
$6,452,225
$6,452,225
$6,452,225(approx.
(approx.
(approx.
(approx.USDUSD
USD
USD$212,000).
$212,000).
$212,000).
$212,000).
K.
K.
K.
K.On On
On
OnNovember
November
November
November30, 30,
30,
30,2017,
2017,
2017,
2017,the the
the
theBoard
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havePeony
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acquire
acquire
acquire19%
19%
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of
of
of
ofthe
the
the
theshares
shares
shares
shares(95,000
(95,000
(95,000
(95,000shares)
shares)
shares)
shares)of of
of
ofEGM
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for
for$76,181
$76,181
$76,181
$76,181(approx.
(approx.
(approx.
(approx.USDUSD
USD
USD2,545)
2,545)
2,545)
2,545)from
from
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GESA.
GESA.
GESA.
GESA.The The
The
Theacquisition
acquisition
acquisition
acquisitiondatedate
date
datewas
was
was
wasDecember
December
December
December27, 27,
27,
27,2017.
2017.
2017.
2017.
L.
L.
L.
L.On On
On
OnDecember
December
December
December20, 20,
20,
20,2017,
2017,
2017,
2017,thethe
the
theBoard
Board
Board
Boardof of
of
ofDirectors
Directors
Directors
Directorsresolved
resolved
resolved
resolvedto to
tohave
to have
havesubsidiary
have subsidiary
subsidiaryETS
subsidiary ETS
ETSacquire
ETS acquire
acquire15%
acquire 15%
15%of
15% of
of
of
the
the
the
theshares
shares
shares
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of
of
ofIsland
Island
Island
Islandfor
for
for
for$80,488
$80,488
$80,488
$80,488(approx.
(approx.
(approx.
(approx.USDUSD
USD
USD2,710)
2,710)
2,710)
2,710)from
from
from
fromassociate
associate
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associateITS.
ITS.
ITS.
ITS.The
The
The
Theacquisition
acquisition
acquisition
acquisitiondate
date
date
date
was
was
was
wasJanuary
January
January
January1, 1,
1,
1,2018.
2018.
2018.
2018.
M.
M.
M.
M.On
On
On
OnJune
June
June
June7,
7,
7,
7,2018,
2018,
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the
the
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Board
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of
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have
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havethe
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subsidiary
subsidiaryPeony
Peony
Peony
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Investment
Investment
Investmentacquire
acquire
acquire
acquire
11.1074%
11.1074%
11.1074%
11.1074%of of
of
ofthe
the
the
theshares
shares
shares
sharesof of
of
ofICS
ICS
ICS
ICSDepot
Depot
Depot
DepotServices
Services
Services
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Bhd
Bhdfor
for
for
for$21,568
$21,568
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$21,568(approx.
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(approx.
(approx.USD
USD
USD
USD706)
706)
706)
706)from
from
from
from
associate
associate
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GESA.
GESA.
GESA.TheThe
The
Theacquisition
acquisition
acquisition
acquisitiondate
date
date
datewas
was
was
wasJune
June
June
June30,30,
30,
30,2018.
2018.
2018.
2018.
N.
N.
N.
N.On
On
On
OnAugust
August
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August13,
13,
13,
13,2018,
2018,
2018,
2018,the
the
the
theBoard
Board
Board
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of
ofDirectors
Directors
Directors
Directorsofof
of
ofthe
the
the
thesubsidiary,
subsidiary,
subsidiary,
subsidiary,EGH,
EGH,
EGH,
EGH,during
during
during
duringtheir
their
their
theirmeeting
meeting
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resolved
resolved
resolved
to
to
to
toacquire
acquire
acquire
acquire100%
100%
100%
100%of of
of
ofthe
the
the
theshares
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ofHMH
HMH
HMH
HMHfrom
from
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other
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party
party
partyChestnut.
Chestnut.
Chestnut.
Chestnut.TheThe
The
Theacquisition
acquisition
acquisition
acquisitiondate
date
date
date
was
was
was
wasDecember
December
December
December14, 14,
14,
14,2018,
2018,
2018,
2018,and
and
and
andthe
the
the
thetransaction
transaction
transaction
transactionamount
amount
amount
amountwas was
was
was$3,265,341
$3,265,341
$3,265,341
$3,265,341(approx.
(approx.
(approx.
(approx.USD
USD
USD
USD$105,808).
$105,808).
$105,808).
$105,808).
(3)
(3)
(3)
(3)Key
Key
Key
Keymanagement
management
management
managementcompensation
compensation
compensation
compensation
Year
Year
Year
Yearended
ended
ended
endedDecember
December
December
December Year
Year
Year
Yearended
ended
ended
endedDecember
December
December
December
31,
31,
31,
31,2018
2018
2018
2018 31,
31,
31,
31,2017
2017
2017
2017
Salaries
Salaries
Salaries
Salariesand
and
and
andother
other
other
othershort-term
short-term
short-term
short-term
employee
employee
employee
employeebenefits
benefits
benefits
benefits $$$$ 150,727
150,727
150,727
150,727 $$$$ 207,058
207,058
207,058
207,058
Post-employment
Post-employment
Post-employment
Post-employmentbenefits
benefits
benefits
benefits 3,704
3,704
3,704
3,704 3,909
3,909
3,909
3,909
$$$$ 154,431
154,431
154,431
154,431 $$$$ 210,967
210,967
210,967
210,967
~90~
~90~
~90~
~90~
261
8.8.PLEDGED
PLEDGEDASSETS
ASSETS
TheGroup’s
The Group’sassets
assetspledged
pledgedasascollateral
collateralare
areasasfollows:
follows:
Bookvalue
Book value
Pledged
Pledgedassets
assets December
December31,
31,2018
2018 December
December31,
31,2017
2017 Purpose
Purpose
Otherfinancial
Other financialassets
assets Performance
Performance
- -Pledged
Pledgedtime
timedeposits
deposits $$ 271,721 $$
271,721 324,508
324,508 guarantee
guarantee
Refundabledeposits
Refundable deposits
- -Pledged
Pledgedtime
timedeposits
deposits 2,000
2,000 2,000
2,000

Property,plant
Property, plantand
andequipment
equipment
-Land
-Land 514,312
514,312 514,312 Long-term
514,312 Long-termloan
loan
-Buildings
-Buildings 5,760,284
5,760,284 2,081,017
2,081,017
-Loadingand
-Loading andunloading
unloadingequipment
equipment 1,971,185
1,971,185 1,968,231
1,968,231
-Ships
-Ships 71,813,444
71,813,444 56,643,395
56,643,395
-Computerand
-Computer and
502,283
502,283 659,279
659,279

communicationequipment
communication equipment
Investmentproperty
Investment property
-Land
-Land 1,285,781
1,285,781 1,285,781 Long-term
1,285,781 Long-termloan
loan
-Buildings
-Buildings 4,393,746
4,393,746 3,523,332
3,523,332
$$ 86,514,756 $$
86,514,756 67,001,855
67,001,855
9.9.SIGNIFICANT
SIGNIFICANTCONTINGENT
CONTINGENTLIABILITIESLIABILITIESAND ANDUNRECOGNISED
UNRECOGNISEDCONTRACT CONTRACT
COMMITMENTS
COMMITMENTS
(1)
(1)Contingencies
Contingencies
None.
None.
(2)
(2)Commitments
Commitments
A.
A.AsAsofofDecember
December31, 31,2018,
2018,thetheCompany
Companyhad haddelegated
delegatedCrédit
CréditAgricole
AgricoleCorporate
Corporateand andInvestment
Investment
Bank
Banktotoissue
issueStandby
StandbyLetter
LetterofofCredit
Creditamounting
amountingtotoUSDUSD5,000.
5,000.
B.B.AAformer
former stockholder
stockholder ofof the
the Company
Companysold sold some
some ofof its
its shares
shares through
through issuance
issuance ofof global
global
depository
depositoryreceipts
receipts(GDRs).
(GDRs).The Theissuance
issuanceofofGDRs
GDRswas wasapproved
approvedby bythe
theSEC
SECon onJune
June19,19,1996
1996
asasper
perLetter
Letter(85)
(85)Tai-Cai-Zheng
Tai-Cai-Zheng(1) (1)No.
No.35410.
35410.On OnAugust
August2,2,1996,
1996,the
theGDRs
GDRswere wereapproved
approved
bybythe
theUKUKgoverning
governingauthority
authoritytotobe belisted
listedononthe
theLondon
LondonStock StockExchange
Exchangeandandwerewereissued
issuedinin
Asia,
Asia,Europe
Europeand andthe
theUS.
US.TheThetotal
totalamount
amountofofthe theissuance
issuanceofofGDRsGDRswas wasUSD
USD115,000.
115,000.TheThe
initial
initialnumber
numberofofunits
unitsissued
issuedwas
was5,449,592,
5,449,592,representing
representing54,495,920
54,495,920shares
sharesofofthe
theCompany’s
Company’s
common
commonstock stockatat$50.50
$50.50(in (indollars)
dollars)perpershare,
share,andandthe
thenumber
numberofofsupplementary
supplementaryunits unitsissued
issued
was
was817,438.
817,438.InIntotal,
total,the
thenumber
numberofofunits
unitsissued
issuedwaswas6,267,030,
6,267,030,representing
62,670,300shares
shares
ofofthe
theCompany’s
Company’scommon
commonstock stockatat$50.50
$50.50(in
(indollars)
dollars)per
pershare,
share,and
andthe
theGDRs
GDRsissued
issuedamounted
amounted
totoUSD
USD115,000.
115,000.Another
Another2,116,352
2,116,352units,
units,representing
21,163,604shares
sharesofofthe
theCompany’s
Company’s
common
commonstock,stock,were
wereissued
issuedduring
duringthetheperiod
periodfrom
from1997
1997totoDecember
December31,31,2018.
2018.As AsofofDecember
December
31,
31, 2018,
2018, 8,301,902
8,301,902 units
units were
were redeemed
redeemed and and 81,480
81,480 units
units were
were outstanding,
outstanding, representing
representing
814,889
814,889shares
sharesofofthe
theCompany’s
Company’scommon commonstock.
stock.
~91~
~91~
262
2018 Annual Report
C. As of December 31, 2018, the long-term and medium-term loan facilities granted by the financial
institutions with the resolution from the Board of Directors to finance the Group’s purchase of
new ships and general working capital requirement amounted to $112,504,119 and the unutilized
credit was $20,541,327.
D. Operating lease
The estimated amount of rent expense in the following years under long-term contracts is set
forth as follows:
December 31, 2018
Within 1 year $ 18,144,025
1~5 years 67,013,201
Over 5 years 45,807,288
$ 130,964,514
E. As of December 31, 2018, the amount of guaranteed notes issued by the Company for loans
borrowed was $75,190,874.
F. To meet its operational needs, the Company signed the shipbuilding contracts with Imabari
Shipbuilding Co., Ltd. and Samsung Heavy Industries. As of December 31, 2018, the total price
of the contracts, wherein the vessels have not yet been delivered, amounted to USD 912,760,
USD 791,560 of which remain unpaid.
G. In response to international regulations on sulfur content in shipping fuel, the Group entered into
sulfur emission abatement equipment purchase contracts with Wartsila Finland Oy and Alfa
Laval Nijmegen B.V.. The total contract prices are USD 72,440 and EUR 23,246, respectively,
and USD 60,897 and EUR 18,544 remain unpaid. The Group signed installation contracts with
Huarun Dadong Dockyard Co., Ltd.. As of December 31, 2018, the total price of the contracts
amounted to USD 88,380, USD 86,612 of which remain unpaid.
10. SIGNIFICANT DISASTER LOSS
None.
11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
For details of appropriation of earnings as proposed by the Board of Directors on March 22, 2019,
please refer to Note 6(18).
12. OTHERS
(1) Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as
a going concern in order to provide returns for shareholders and to maintain an optimal capital
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group
may adjust the amount of dividends paid to shareholders, return capital to shareholders and issue
new shares to maintain an optimal capital.
~92~
263
(2) Financial instruments

A. Financial instruments by category

Financial assets
Financial assets at fair value through other
Designation of equity instrument $ 1,650,372 $ -
Available-for-sale financial assets - 2,282,619
Held-to-maturity financial assets - 100,000
Financial assets at amortised cost
Cash and cash equivalents 38,230,522 38,108,263
Notes receivables 154,295 66,410
Other accounts receivable 1,481,452 882,906
Financial assets at amortised cost 100,000 -
Guarantee deposits paid 226,760 197,413
$ 57,631,971 $ 55,731,789
Financial liabilities
Financial liabilities at amortised cost
Accounts payable $ 20,066,362 $ 15,562,519
Other accounts payable 4,807,376 4,113,886
Bonds payable (including current portion) 10,000,000 8,000,000
Long-term borrowings (including current portion) 99,360,501 81,487,631
$ 134,581,354 $ 109,201,644
B. Financial risk management policies

(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s
overall risk management programme focuses on the unpredictability of financial markets and
seeks to minimize potential adverse effects on the Group’s financial position and financial
performance.
(b) Risk management is carried out by the Group’s Finance Department under policies approved
by the Board of Directors. The Group’s Finance Department identifies, evaluates and hedges
financial risks in close co-operation with the Group’s Operating Department. The Board of
Directors provides written principles for overall risk management, as well as written policies
covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk,
use of derivative financial instruments and non-derivative financial instruments, and
investment of excess liquidity.
~93~
264
2018 Annual Report
C. Significant financial risks and degrees of financial risks

(a) Market risk
Foreign exchange risk
i. The Group operates internationally and is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the USD and GBP. Foreign exchange
risk arises from future commercial transactions, recognised assets and liabilities and net
investment in foreign operations.
ii. The Group’s management has set up a policy to require group companies to manage their
foreign exchange risk against their functional currency. The group companies are required
to hedge their entire foreign exchange risk exposure with the Group’s Finance Department.
To manage their foreign exchange risk arising from future commercial transactions and
recognised assets and liabilities, entities in the Group use forward foreign exchange
contracts, transacted with Group’s Finance Department. Foreign exchange risk arises when
future commercial transactions or recognised assets or liabilities are denominated in a
foreign currency that is not the entity’s functional currency.
iii. The Group’s businesses involve some non-functional currency operations (the Company’s
and certain subsidiaries’
’ functional
currency: USD, GBP, EUR, CNY and others). The information on assets and liabilities
denominated in foreign currencies whose values would be materially affected by the
exchange rate fluctuations is as follows:
December 31, 2018
Foreign
currency
amount Book value
(In Thousands) Exchange rate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD $ 975,655 30.7535 $ 30,004,806
Monetary items
USD:NTD $ 955,998 30.7535 $ 29,400,284
HKD:USD 102,461 0.1276 402,072
GBP:USD 5,892 1.2650 229,218
RMB:USD 209,819 0.1456 939,509
EUR:USD 4,406 1.1450 155,147
~94~
265
December 31, 2017

Foreign
currency
amount Book value
Financial assets
Monetary items
USD:NTD $ 946,352 29.7005 $ 28,107,128
EUR:USD 9,375 1.1993 333,936
Monetary items
USD:NTD $ 830,955 29.7005 $ 24,679,779
HKD:USD 93,861 0.1279 356,549
RMB:USD 143,195 0.1532 651,554
iv. The total exchange (loss) gain, including realised and unrealised arising from significant
foreign exchange variation on the monetary items held by the Group for the years ended
December 31, 2018 and 2017 amounted to $308,031 and $51,516, respectively.
v. Analysis of foreign currency market risk arising from significant foreign exchange
variation:

Sensitivity analysis
Effect on other
Degree of Effect on comprehensive
variation profit or loss income
Financial assets
Monetary items
USD:NTD 1% $ 300,048 $ -
Monetary items
USD:NTD 1% $ 294,003 $ -
HKD:USD 1% 4,021 -
GBP:USD 1% 2,292 -
RMB:USD 1% 9,395 -
EUR:USD 1% 1,551 -
~95~
266
2018 Annual Report

Effect on other
Financial assets
Monetary items
USD:NTD 1% $ 281,071 $ -
EUR:USD 1% 3,339 -
Monetary items
USD:NTD 1% $ 246,798 $ -
HKD:USD 1% 3,565 -
RMB:USD 1% 6,516 -
Price risk
i. The Group is exposed to equity securities price risk because of investments held by the
Group and classified on the consolidated balance sheet either as available-for-sale or at fair
value through profit or loss. The Group is not exposed to commodity price risk. To manage
its price risk arising from investments in equity securities, the Group diversifies its
portfolio. Diversification of the portfolio is done in accordance with the limits set by the
Group.
ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks.
The prices of equity securities would change due to the change of the future value of
investee companies. If the prices of these equity securities had increased/decreased by 1%
with all other variables held constant, equity would have increased/decreased by $16,071
and $22,364 for the years ended December 31, 2018 and 2017, respectively, as a result of
gains/losses on equity securities classified as available-for-sale.
Cash flow and fair value interest rate risk
i. The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at
variable rates expose the Group to cash flow interest rate risk which is partially offset by
cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose
the Group to fair value interest rate risk. During the years ended December 31, 2018 and
2017, the Group’s borrowings at variable rate were denominated in the NTD, USD and
GBP.
~96~
267
ii. At December 31, 2018 and 2017, if interest rates on borrowings had been 1% higher/lower
with all other variables held constant, post-tax profit for the years ended December 31,
2018 and 2017 would have been $866,151 and $702,141 lower/higher, respectively, mainly
as a result of higher/lower interest expense on floating rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients
or counterparties of financial instruments on the contract obligations. The main factor is
that counterparties could not repay in full the accounts receivable based on the agreed terms.
ii. The Group manages their credit risk taking into consideration the entire group’s concern.
According to the Group’s credit policy, each local entity in the Group is responsible for
managing and analysing the credit risk for each of their clients before standard payment
and delivery terms and conditions are offered. Internal risk control assesses the credit
quality of the customers, taking into account their financial position, past experience and
other factors.
iii. The Group adopts following assumptions under IFRS 9 to assess whether there has been a
significant increase in credit risk on that instrument since initial recognition:
If the contract payments were past due over 30 days based on the terms, there has been a
significant increase in credit risk on that instrument since initial recognition.
iv. If the default rate of an investment target exceeds 0.03%, there has been a significant
increase in credit risk on that instrument since initial recognition.
v. The Group classifies customers’ accounts receivable in accordance with the nature of
segments. The Group applies the modified approach using probability of default to estimate
expected credit loss under the provision matrix basis.
vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be
recovered, after initiating recourse procedures. However, the Group will continue executing
the recourse procedures to secure their rights. On December 31, 2018, the Group has no
written-off financial assets that are still under recourse procedures.
vii. The Group used the forecastability to adjust historical and timely information to assess the
default possibility of notes receivable, accounts receivable (including related parties) and
contract assets. On December 31, 2018, the loss rate methodology is as follows:
Individual Group Total
At December 31,
2018
Expected loss rate 100% 0.17%
Total book value $ 269,567 $ 17,945,460 $ 18,215,027
Loss allowance $ 269,567 $ 30,251 $ 299,818
~97~
268
2018 Annual Report
viii. Movements in relation to the group applying the simplified approach to provide loss
allowance for accounts receivable, contract assets and lease payments receivable are as
follows:
2018
Notes Accounts Contract Overdue
receivable receivable assets receivables
At January 1_IAS 39 $ - ($ 96,283) $ - ($ 195,715)
Adjustments under new
standards ( 5) ( 909) ( 4,467) -
At January 1_IFRS 9 ( 5) ( 97,192) ( 4,467) ( 195,715)
Provision for impairment - ( 15,524) - -
Reversal of impairment loss 1 10,192 3,858 -
Write-offs - 1,114 - -
Effect of foreign exchange - 4,942 ( 83) ( 6,939)
At December 31 ($ 4) ($ 96,468) ($ 692) ($ 202,654)
ix. Credit risk information of 2017 is provided in Note 12(4).
(c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by
Group’s Finance Department. Group’s Finance Department monitors rolling forecasts of
the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.
ii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or
gross-settled derivative financial liabilities into relevant maturity groupings based on the
remaining period at the balance sheet date to the contractual maturity date for non-derivative
financial liabilities.
Non-derivative financial liabilities:
Between 3
December 31, 2018 Less than 3 months and Between 1 Between 2 Over 5
months 1 year and 2 years and 5 years years Total
Accounts payable $ 19,747,208 $ 65,975 $ 7 $ - $ - $ 19,813,190
Accounts payable
- related parties 145,511 107,661 - - - 253,172
Other payables 3,345,893 275,033 - - 1,966 3,622,892
Other payables
- related parties 80,048 1,104,436 - - - 1,184,484
Bonds payable - 101,200 101,200 10,177,600 - 10,380,000
Long-term loans
(including current
portion) 6,739,554 12,365,049 25,567,731 47,214,097 16,668,096 108,554,527
Long-term leases
(including current
portion) 593,514 1,347,737 1,245,685 8,452,762 - 11,639,698
~98~
269

Between 3
Accounts payable $ 15,358,566 $ 71 $ 14 $ - $ - $ 15,358,651
Accounts payable
- related parties 188,582 15,286 - - - 203,868
Other payables 2,683,132 426,465 - - 1,558 3,111,155
Other payables
- related parties 138,764 863,967 - - - 1,002,731
Bonds payable - 84,000 84,000 8,210,000 - 8,378,000
Long-term loans
(including current
portion) 3,611,101 14,125,522 19,548,867 32,884,400 16,685,608 86,855,498
Long-term leases
(including current
portion) 505,416 844,283 1,672,398 8,359,595 349,204 11,730,896
iii. The Group does not expect the timing of occurrence of the cash flows estimated through the
maturity date analysis will be significantly earlier, nor expect the actual cash flow amount
will be significantly different.
(3) Fair value estimation
A.The different levels that the inputs to valuation techniques are used to measure fair value of
financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date. A market is regarded as active if it meets all
the following conditions: the items traded

and prices are available to the
public. The fair value of the Group’s investment in listed stocks, beneficiary certificates
and derivative instruments with quoted market prices is included in Level.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
B. Fair value information of investment property at cost is provided in Note 6(9).
C. Financial instruments not measured at fair value
(a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents,
notes receivable, accounts receivable, other receivables, other financial assets, accounts
payable and other payables are approximate to their fair values.
~99~
270
2018 Annual Report
December 31, 2018

Fair value
Book value Level 3
Financial liabilities:
Bonds payable $ 10,000,000 $ 10,156,197
Long-term loans (including current portion) 99,360,501 108,243,508
$ 109,360,501 $ 118,399,705
December 31, 2017
Fair value
Book value Level 3
Bonds payable $ 8,000,000 $ 8,177,927
Long-term loans (including current portion) 81,487,631 85,935,082
$ 89,487,631 $ 94,113,009
D. The related information of financial and non-financial instruments measured at fair value by level
on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:
(a) The related information of natures of the assets and liabilities is as follows:
December 31, 2018 Level 1 Level 2 Level 3 Total
Assets:
Recurring fair value
measurements
Financial assets at fair value
through other comprehensive
income
Equity securities $ 850,223 $ - $ 800,149 $ 1,650,372
December 31, 2017 Level 1 Level 2 Level 3 Total

Assets:
Recurring fair value
measurements
Available-for-sale financial assets
Equity securities $ 1,144,974 $ - $ 1,137,645 $ 2,282,619
(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1)
are listed below by characteristics:
Listed shares
Market quoted price Closing price
~100~
271
ii. Except for financial instruments with active markets, the fair value of other financial
instruments is measured by using valuation techniques or by reference to counterparty
quotes. The fair value of financial instruments measured by using valuation techniques can
be referred to current fair value of instruments with similar terms and characteristics in
substance, discounted cash flow method or other valuation methods, including calculated
by applying model using market information available at the consolidated balance sheet
date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates
quoted from Reuters).
iii. When assessing non-standard and low-complexity financial instruments, the Group adopts
valuation technique that is widely used by market participants. The inputs used in the
valuation method to measure these financial instruments are normally observable in the
market.
iv. The valuation of derivative financial instruments is based on valuation model widely
accepted by market participants, such as present value techniques and option pricing models.
Forward exchange contracts are usually valued based on the current forward exchange rate.
Structured interest derivative instruments are measured by using appropriate option pricing
models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo
simulation.
v. The output of valuation model is an estimated value and the valuation technique may not
be able to capture all relevant factors of the Group’s financial and non-financial instruments.
Therefore, the estimated value derived using valuation model is adjusted accordingly with
additional inputs, for example, model risk or liquidity risk and etc. In accordance with the
Group’s management policies and relevant control procedures relating to the valuation
models used for fair value measurement, management believes adjustment to valuation is
necessary in order to reasonably represent the fair value of financial and non-financial
instruments at the consolidated balance sheet. The inputs and pricing information used
during valuation are carefully assessed and adjusted based on current market conditions.
vi. The Group takes into account adjustments for credit risks to measure the fair value of
financial and non-financial instruments to reflect credit risk of the counterparty and the
Group’s credit quality.
E. For the years ended December 31, 2018 and 2017, there was no transfer between Level 1 and
Level 2.
~101~
272
2018 Annual Report
F. The following chart is the movement of Level 3 for the years ended December 31, 2018 and 2017:
2018 2017
At January 1 $ 1,137,645 $ 1,056,802
Issued in the period - -
Sold in the period ( 924) -
Gains and losses recognised in other
comprehensive income (Note 1) ( 336,572) 80,843
At December 31 $ 800,149 $ 1,137,645
Note 1: Recorded as unrealised gain or losses on valuation of available-for-sale financial assets,

unrealised gains or losses on valuation of investments in equity instruments measured at
fair value through other comprehensive income and exchange differences on translating
the financial statements of foreign operations.
G. For the years ended December 31, 2018 and 2017, there was no transfer into or out from Level 3.
H. The Group is in charge of valuation procedures for fair value measurements being categorised
within Level 3, which is to verify independent fair value of financial instruments. Such
assessment is to ensure the valuation results are reasonable by applying independent information
to make results close to current market conditions, confirming the resource of information is
independent, reliable and in line with other resources and represented as the exercisable price,
and frequently calibrating valuation model, performing back-testing, updating inputs used to the
valuation model and making any other necessary adjustments to the fair value.
~102~
273
I. TheI. following is theis qualitative

The following information
the qualitative of ofsignificant
information significantunobservable
unobservable inputs and sensitivity
inputs and sensitivity
analysis of changes
analysis in significant
of changes unobservable
in significant unobservable inputs
inputstotovaluation
valuation model
model used in Level
used in Level33fair
fair
valuevalue
measurement:
measurement:
Fair Fair
value at at
value Significant
Significant Range
Range
Valuation unobservable
December Valuation
December unobservable (weighted
(weighted Relationship of
Relationship ofinputs
inputs
31, 2018 technique
31, 2018 technique input
input average)
average) to
to fair
fairvalue
value
Non-derivative
Non-derivative equity
equity
instrument:
instrument:
Market
Market Price
Price toto The higher
The higher the
themultiple
multiple
Unlisted shares $ 793,376 comparable earnings ratio 7.61~70.77 and control premium,
companies multiple the higher the fair value
The higher the multiple
Price to book The higher premium,
the multiple
Price 0.46~2.36 and control
ratiotomultiple
book
0.46~2.36 and control
ratio multiple the higher thepremium,
fair value
the higher the fair value
The higher the
Discount for The higher
weighted the cost
average
Discount
lack of for 20%~30% weighted average
of capital and cost
discount
marketability
lack of forcapital
20%~30% of lack ofand
control, the
discount
marketability lower the fair value
for lack of control, the
Venture capital shares The higher
lower the value
the fair net
Net asset Net asset
Private
Venture equity
capital fund
shares 6,773 assethigher
The value, the
the higher
net
value
Net asset value
Net asset
investment
Private equity fund 6,773 the fair value
asset value, the higher
value value
investment the fair value
~103~
~103~
274
2018 Annual Report
Fair value at Significant Range

December
December
(weighted
(weighted
Relationship of inputs
Relationship of inputs
31,Fair value attechnique
2017
31, 2017 technique
Significant
input
input
Range
average)
average) tofair
to fairvalue
value
Non-derivative equity December Valuation unobservable (weighted Relationship of inputs
instrument: 31, 2017 technique input average) to fair value
instrument:
Non-derivative equity Market Price
Market Pricetoto The higher
The higherthe themultiple
multiple
instrument:
Unlisted sharesshares
Unlisted $ 1,129,949
$ 1,129,949 comparable
comparable earnings
earningsratio
ratio 15.33~31.89
15.33~31.89 and and control
controlpremium,
premium,
Market
companies
companies multiple Price to
multiple The
the higher the
the higher thefair
higher the multiple
fairvalue
value
Unlisted shares $ 1,129,949 comparable earnings ratio 15.33~31.89 and control premium,
companies Price multiple The
the higher
Thehigher the
higherthe multiple
thefair
multiple
value
Pricetotobook
book
0.48~1.71 and
0.48~1.71 and control
control premium,
premium,
ratiomultiple
ratio multiple Thehigher
higherthe
thefair
multiple
Price to book the
the higher the fairvalue
value
0.48~1.71 and control premium,
ratio multiple The higher the
Thehigher
the higherthethefair value
Discount for weighted average cost
Discount for weighted
The average
higherand
thediscount cost
lack of 20% of capital
lack of
Discount for 20% of capitalaverage
weighted and discount
marketability for lack of control,cost the
marketability
lack of 20% lower the fair value the
for
of lack
capital of
and control,
discount
Venture capital shares
marketability lower
for lackthe
of fair value
control,
The higher the net
the
Venture capital shares Net asset Net asset lower the fairthe
The higher value
net
Private equity fund 7,696 Net asset Net asset asset value, the higher
PrivateVenture
equity capital
fund shares 7,696 value value The
asset higher
value, thethenethigher
investment Net asset value Net asset the fair value
Private equity fund 7,696 value asset value, the higher
investment the fair value
J. The Group has carefully assessedvalue
investment the valuationvalue
models and assumptions used the to measure
fair valuefair value.
J. The Group has carefully assessed the valuation models and assumptions used
However, use of different valuation models or assumptions may result in difference measurement.to measure fair value.
J. The Group has carefully assessed the valuation models and assumptions used to measure fair value.
However, use of different
The following valuation
is the effect models
of profit or lossororassumptions may resultincome
of other comprehensive in difference measurement.
from financial assets
However, use of different valuation models or assumptions may result in difference measurement.
The following
categorisedis within
the effect
Level of 3profit
if theor loss or
inputs usedof to
other comprehensive
valuation models have income from financial assets
changed:
The following is the effect of profit or loss or of other comprehensive income from financial assets
categorised within
categorised Level
within 3 if 3the
Level inputs
if the used
inputs usedto to
valuation
valuationmodels
models have
have changed:
December 31, 2018
changed:
Recognised in December
profit or 31,Recognised
2018 in other
December 31, 2018
loss comprehensive income
Recognised
Recognisedininprofit
profit or
or Recognised
Recognised ininother other
loss
loss comprehensive
comprehensive income income
Favourable Unfavourable Favourable Unfavourable
Input Change change change change change
FavourableUnfavourable
Favourable Unfavourable Favourable
Favourable Unfavourable
Unfavourable
Financial assets
Input Input Change change
Change change change
change change
change change
change
Price to earnings
Financial
Financial assetsassets
Equity ratio/ price to book
Price to earnings ±1% $ - $ - $ 7,934 $ 7,934
instrument Priceratio/to earnings
discount for
ratio/ofprice to book
EquityEquity ratio/lack
price marketability
to book ±1% $ - $ - $ 7,934 $ 7,934
instrument ratio/ discount for ±1% $ - $ - $ 7,934 $ 7,934
instrument ratio/Netdiscount
asset for
value ±1% - - 68 68
lack of marketability
lack of marketability $ - $ - $ 8,002 $ 8,002
Net asset value ±1% - - 68 68
$ - $ - $ 8,002 $ 8,002
$ - $ - $ 8,002 $ 8,002
~104~
~104~
~104~
275
December
December 31,
31, 2017
Recognised
Recognisedininprofit
profitor
or Recognised
Recognised ininother
other
loss
loss comprehensive income
FavourableUnfavourable
Favourable Unfavourable Favourable
Unfavourable
Input
Input Change change
Change change change
change change
change change
change
Financial assets
Financial assets
Price to earnings
Price to earnings
Equity ratio/ price to book
Equityinstrument ratio/ratio/ to bookfor ±1%
pricediscount $ - $ - $ 11,299 $ 11,299
±1% $ - $ - $ 11,299 $ 11,299
instrument ratio/lack
discount for
of marketability
Net asset value ±1% $ -- $ -- $ 11,376
77 $ 77
11,376
$ - $ - $ 11,376 $ 11,376
(4) Effects on initial application of IFRS 9 and information on application of IAS 39 in 2017
(4) Effects
A.on initial application
Summaries of adopting IFRS 9 and
ofsignificant information
accounting on in
policies application
2017: of IAS 39 in 2017
A. Summaries of adopting
(a) Financial assets significant
at fair valueaccounting policies
through profit or lossin 2017:
i. They
(a) Financial are at
assets financial assets
fair value held for
through trading
profit or financial assets designated as at fair value
or loss
i. Theythrough profit orassets
are financial loss on initial
held forrecognition.
trading or Financial
financial assets
assetsare classified in
designated as this category
at fair value
of held
through profitforortrading
loss onifinitial
acquired principallyFinancial
recognition. for the purpose of classified
assets are selling in in
thethis
short-term.
category
Derivatives
of held are ifalso
for trading categorized
acquired as financial
principally for theassets held of
purpose forselling
tradinginunless they are
the short-term.
designated as hedges. Financial assets that meet one of the following criteria are designated
Derivatives are also categorized as financial assets held for trading unless they are
as at fair value through profit or loss on initial recognition:
designated as hedges. Financial assets that meet one of the following criteria are designated

(ii) They eliminate or significantly reduce a measurement or recognition inconsisor

(iii)They are managed and their performance is evaluated on a fair value basis, in
(ii) Theyaccordance
eliminate or significantly reduce a measurement or recognition inconsisor
with a documented risk management or investment strategy.
(iii)They are managed
ii. On a regular and their
way purchase or saleperformance is assets
basis, financial evaluated
at fair on a through
value fair value
profitbasis,
or lossin
accordance withand
are recognised a documented
derecognisedrisk management
using or investment strategy.
trade date accounting.
ii. Oniii.
a regular way
Financial purchase
liabilities or value
at fair sale basis, financial
through profit orassets at initially
loss are fair value through at
recognised profit or loss
fair value.
are recognised and derecognised
Related transaction costs are using tradeindate
expensed accounting.
profit or loss. These financial liabilities are
subsequently
iii. Financial remeasured
liabilities and through
at fair value stated at profit
fair value, andare
or loss anyinitially
changesrecognised
in the fair value of these
at fair value.
financial
Related liabilities
transaction are recognised
costs in profit
are expensed or loss.
in profit or loss. These financial liabilities are
(b) Available-for-sale
subsequently financial
remeasured andassets
stated at fair value, and any changes in the fair value of these
i. They are
financial non-derivatives
liabilities that areineither
are recognised designated
profit or loss. in this category or not classified in any
of the other categories.
(b) Available-for-sale financial assets
ii. On a regular way purchase or sale basis, available-for-sale financial assets are recognised
i. They are non-derivatives that are either designated in this category or not classified in any
and derecognised using trade date accounting.
of the other categories.
ii. On a regular way purchase or sale basis, available-for-sale financial assets are recognised
~105~
~105~
276
2018 Annual Report
iii. They are initially recognised at fair value plus transaction costs. These financial assets are
subsequently remeasured and stated at fair value, and any changes in the fair value of
these financial assets are recognised in other comprehensive income.
(c) Held-to-maturity financial assets
i. They are non-derivative financial assets with fixed or determinable payments and fixed
maturity date that the Group has the positive intention and ability to hold to maturity other
than those that meet the definition of loans and receivables and those that are designated as
at fair value through profit or loss or as available-for-sale on initial recognition.
ii. On a regular way purchase or sale basis, held-to-maturity financial assets are recognised
iii. They are initially recognised at fair value on the trade date plus transaction costs and
subsequently measured at amortised cost using the effective interest method, less
provision for impairment. Amortisation of a premium or a discount on such assets is
recognised in profit or loss.
(d) Notes, accounts and other receivables
Notes and accounts receivable are claims resulting from the sale of goods or services.
Receivables arising from transactions other than the sale of goods or services are classified
as other receivables. Notes, accounts and other receivables are recognised initially at fair
value and subsequently measured at amortised cost using the effective interest method, less
provision for impairment. However, short-term accounts receivable without bearing interest
are subsequently measured at initial invoice amount as effect of discounting is immaterial.
(e) Impairment of financial assets
i. The Group assesses at each balance sheet date whether there is objective evidence that a
financial asset or a group of financial assets is impaired as a result of one or more events
that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or
events) has an impact on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated.
ii. The criteria that the Group uses to determine whether there is objective evidence of an
impairment loss is as follows:
(i) Significant financial difficulty
(ii) A breach of contract, such as a default or delinquency in interest or principal

(iii) The Group, for economic or legal reasons relating to the borrower’s financial
difficulty, granted the borrower a concession that a lender would not otherwise

(iv) It becomes probable that the borrower will enter bankruptcy or other financial

~106~
277
(v) The disappearance of an active market for that financial asset because of financial

(vi) Observable data indicating that there is a measurable decrease in the estimated future
cash flows from a group of financial assets since the initial recognition of those assets,
although the decrease cannot yet be identified with the individual financial asset in
the group, including adverse changes in the payment status of borrowers in the group
or national or local economic conditions that correlate with defaults on the assets in

(vii) Information about significant changes with an adverse effect that have taken place
in the technology, market, economic or legal environment in which the issuer
operates, and indicates that the cost of the investment in the equity instrument may

(viii) A significant or prolonged decline in the fair value of an investment in an equity
instrument below its cost.
iii. When the Group assesses that there has been objective evidence of impairment and an
impairment loss has occurred, accounting for impairment is made as follows according
to the category of financial assets:
(i) Financial assets measured at cost
The amount of the impairment loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows discounted at the
financial asset’s original effective interest rate, and is recognised in profit or loss.
Impairment loss is recognized and reversed by adjusting the carrying amount of the
asset through the use of an impairment allowance account.
(ii) Available-for-sale financial assets
The amount of the impairment loss is measured as the difference between the asset’s
acquisition cost (less any principal repayment and amortisation) and current fair value,
less any impairment loss on that financial asset previously recognised in profit or loss,
and is reclassified from ‘other comprehensive income’ to ‘profit or loss’. If, in a
subsequent period, the fair value of an investment in a debt instrument increases, and
the increase can be related objectively to an event occurring after the impairment loss
was recognised, such impairment loss is reversed through profit or loss. Impairment
loss of an investment in an equity instrument recognised in profit or loss shall not be
reversed through profit or loss. Impairment loss is recognised and reversed by
adjusting the carrying amount of the asset through the use of an impairment allowance
account.
~107~
278
2018 Annual Report
(f) Derivative financial instruments and hedging activities

i. Derivatives are initially recognised at fair value on the date a derivative contract is entered
into and are subsequently remeasured at their fair value. Any changes in the fair value are
recognised in profit or loss.
ii. The Group designates certain derivatives as hedges of a particular risk associated with a
recognised asset or liability or a highly probable forecast transaction (cash flow hedge).
iii. The Group documents at the inception of the transaction the relationship between hedging
instruments and hedged items, as well as its risk management objectives and strategy for
undertaking various hedging transactions. The Group also documents its assessment, both
at hedge inception and on an ongoing basis, of whether the derivatives that are used in
hedging transactions are highly effective in offsetting changes in fair values or cash flows
of hedged items.
iv. The full fair value of a hedging derivative is classified as a non-current asset or liability
when the remaining maturity of the hedged item is more than 12 months, and as a current
asset or liability when the remaining maturity of the hedged item is less than 12 months.
Trading derivatives are classified as current assets or liabilities.
v. Cash flow hedge
(i) The effective portion of changes in the fair value of derivatives that are designated and
qualified as cash flow hedges is recognised in other comprehensive income. The gain or
loss relating to the ineffective portion is recognised immediately in the statement of
comprehensive income within ‘other gains and losses’.
(ii) Amounts accumulated in other comprehensive income are reclassified into profit or loss
in the periods when the hedged item affects profit or loss. The gain or loss relating to
the effective portion of interest rate swaps hedging variable rate borrowings is
recognised in the statement of comprehensive income within ‘finance costs’. However,
when the forecast transaction that is hedged results in the recognition of a non-financial
asset or financial liability, the gains and losses previously deferred in other
comprehensive income are reclassified into profit or loss in the periods when the asset
acquired or the liability assumed affects profit or loss. The deferred amounts are
ultimately recognised in operating costs.
(iii) When a hedging instrument expires, or is sold, cancelled or executed, or when a hedge
no longer meets the criteria for hedge accounting, any cumulative gain or loss existing
in other comprehensive income at that time remains in other comprehensive income.
When a forecast transaction occurs or is no longer expected to occur, the cumulative
gain or loss that was reported in other comprehensive income is transferred to profit or
loss in the periods when the hedged forecast cash flow affects profit or loss.
~108~
279
B.
B.The
Thereconciliations
reconciliationsofofcarrying
carryingamount
amountofoffinancial
financialassets
assetstransfered
transferedfrom
fromDecember
December31,
31,2017,
2017,
IAS
IAS39,
39,totoJanuary
January1,1,2018,
2018,IFRS
IFRS9,9,were
wereasasfollows:
follows:
B. The reconciliations of carrying
B. The reconciliations amountamount
of carrying of financial assets
of financial transfered
assets from
transfered fromDecember
December 31, 2017,
31, 2017,
Effects
Effects
IAS 39, to IAS
January
39, to1,January
2018, 1,
IFRS
2018,9,IFRS
were9,aswere
follows:
as follows:
Measured
Measuredatat
Effects
Effects
fair
fairvalue
value Held-to-
Held-to-
Measured at
Measured
through
throughother at Available-for-
other Available-for- maturitymaturity Financial
Financial
fair value Held-to-
fair value
comprehensive
comprehensive sale
salefinancial Held-to-
financial financial
financial assets
assetsatat Retained
Retained Others
Others
through other Available-for- maturity Financial
through other
income-equity
income-equity Available-for-
comprehensiveassets maturity
assetssale financial
assets
assetsfinancial Financial
amortised
amortised cost
cost
assets at Total
Total earnings
earnings
Retained equity
equity
Others
IAS
IAS3939 comprehensive
$$ - - sale
$$
income-equity financial
2,282,619
2,282,619 $
assetsfinancial
$ 100,000
100,000 $
assets$ assets at - -
amortised cost$$ 2,382,619
2,382,619
Total $$Retained -
earnings - $$ Others
equity - -
Transferred
Transferredinto
into and
and
IAS 39 income-equity$ assets assets
- $ 2,282,619 $ 100,000 $ amortised cost Total
- $ 2,382,619 $ earnings - $ equity -
measured
measured
IAS 39 atatfair
fairvalue
value $into and
Transferred - $ 2,282,619 $ 100,000 $ - $ 2,382,619 $ - $ -
through
throughother
other
Transferred measured
into and at fair 2,282,619
value
2,282,619 ( ( 2,282,619)
2,282,619) -- -- -- -- --
comprehensive
comprehensive through other 2,282,619 ( 2,282,619) - - - - -
measured at fair value
income-equity
income-equity comprehensive
through other income-equity 2,282,619 ( 2,282,619) - - - - -
Transferred
Transferred into
into and
and
comprehensiveTransferred into and
measured
measuredatat measured at
income-equity -- - - - ( ( 100,000)
100,000)
- ( 100,000) 100,000100,000
100,000 2,382,619
2,382,619
2,382,619 --- -- -
amortised
amortised cost
cost
Transferred into and cost
amortised
Impairment
Impairment
measured at loss
loss
Impairment loss - - ( 100,000) 100,000 2,382,619 - -
adjustment
adjustment
amortised costadjustment -- - -- - -- - -- - - - - 192,156
192,156
192,156 ((( 192,156)
192,156)
192,156)
IFRS
IFRS99 loss IFRS 9 $$ 2,282,619 $ 2,282,619
2,282,619 $$ $ - - $$ - $ - - $$ - 100,000 $100,000
100,000 $4,765,238
4,765,238 $$$192,156
$$ 4,765,238 192,156 ($
192,156 ($ 192,156)
($ 192,156)
192,156)
Impairment
adjustment - - - - - 192,156 ( 192,156)
(a) Under IAS 39, because the equity instruments, which were classified as: available-for-sale
IFRS 9 (a) (a)Under
UnderIAS IAS
$ 39, 39,because
because
2,282,619 $ the
theequity
equity
- instruments,
$instruments, - $ whichwhich were
100,000 were$ classified
classified
4,765,238 as: as:
$ available-for-sale
available-for-sale
192,156 ($ 192,156)
financial assets, amounting to $2,282,619, were not held for the purpose of trading, they were
financial
financialassets,
assets,amounting
amountingtoto$2,282,619,
$2,282,619,were werenotnotheld
heldfor
forthe
thepurpose
purposeofoftrading,
trading,they theywere
were
(a) Under IASreclassified
39, because the equity
as "financial instruments,
assets at fair valuewhich were
through classified
other as: available-for-sale
comprehensive income (equity
reclassified
reclassifiedasas"financial
"financialassets assetsatatfair fairvalue
valuethrough
throughother
othercomprehensive
comprehensiveincome income(equity(equity
instruments)"
financial assets, amounting amounting to $2,282,619,
to $2,282,619, were increased retained
not held for earningsofand
the purpose decreased
trading, they other
were
instruments)"
instruments)" amounting
amounting
interest in the amounts of $192,156 and $192,156 on initial application of IFRS 9.other
to
to $2,282,619,
$2,282,619, increased
increased retained
retained earnings
earnings and
and decreased
decreased other
reclassifiedequity
as "financial assets at fair value through other comprehensive income (equity
equity
equityinterest
interest
(b) UnderininIAS
the
the39,
amounts
amounts
because ofofthe
$192,156
$192,156 and
and$192,156
$192,156
equity instruments, on
which onwere
initial
initial application
application
classified ofofIFRS
IFRS9.9.
as: held-to-maturity
instruments)" amounting to $2,282,619, increased retained earnings and decreased other
(b)
(b)Under
UnderIAS IAS 39,
39,because
financial because
assets, thetheequity
equityto
amounting instruments,
instruments,
$100,000, met which
which were
wereclassified
the condition classified
that it is as:
as:held-to-maturity
held-to-maturity
intended to settle the
equity interest in the amounts of $192,156 and $192,156 on initial application of IFRS 9.
financial principal
financialassets, and
assets,amounting interest on
amountingtoto$100,000, the outstanding
$100,000,met principal
metthe balance,
thecondition
conditionthat and the Group holds
thatititisisintended
intendedtoto these assets
settle
settle the
the
(b) Under IASfor39, the because
purpose ofthecashequity
inflow instruments,
and sale, they which
were were classified
reclassified as as:
"financial held-to-maturity
assets at amortised
principal
principalandandinterest
intereston onthe theoutstanding
outstandingprincipal
principalbalance,
balance,and andthetheGroup
Groupholds
holdsthesetheseassets
assets
financial assets, amounting
cost" amounting to $100,000,
to $100,000 metapplication
on initial the condition
of IFRSthat
9. it is intended to settle the
for
forthe
thepurpose
purposeofofcash cashinflow
inflowand andsale,sale,they
theywere
werereclassified
reclassifiedasas"financial
"financialassets
assetsatatamortised
amortised
principal
C. Theand interestaccounts
significant on the outstanding
as of December principal
31, 2017balance,
and for and the ended
the year GroupDecember
holds these 31, assets
2017,
cost"
cost"amounting
amountingtoto$100,000
$100,000on oninitial
initialapplication
applicationofofIFRSIFRS9.9.
are as follows:
for the purpose of cash inflow and sale, they were reclassified as "financial assets at amortised
C.
C.The
Thesignificant
significant accounts
accountsasasofof
(a)Available-for-sale December
December
financial assets31,
31,2017
2017and andfor
forthe
theyear
yearended
endedDecember
December31, 31,2017,
2017,
cost" amounting to $100,000 on initial application of IFRS 9.
are
areasasfollows:
follows:
C. The significant accounts as of December Items31, 2017 and for the year endedDecember December 31, 31,20172017,
(a)Available-for-sale
(a)Available-for-sale financial
financial assets
assets
are as follows:Non-current items:
Listed (TSE and OTC) stocks $ 631,039
(a)Available-for-sale financial Items
Items
assets December
December31, 31,20172017
Unlisted stocks 205,227
Non-currentSubtoal
Non-current items:
items: 836,266
Listed(TSE
Listed (TSE and
and OTC)
OTC) Items
stocks
stocks $ $December 31,631,039 2017
631,039
Valuation adjustment 1,446,353
Non-current
Unlistedstocks
Unlisted items:
stocks 205,227
205,227
$ 2,282,619
Listed (TSE
Subtoal
Subtoal and OTC) stocks $ 631,039
836,266
836,266
Unlisted
Valuation
Valuation stocks
adjustment
adjustment 205,227
1,446,353
1,446,353
Subtoal $$ 836,266
2,282,619
2,282,619
Valuation adjustment 1,446,353
~109~
$ 2,282,619
~109~
~109~
~109~
280
2018 Annual Report
i. The Group recognised $41,394 in other comprehensive income (including unrealised gain
or losses on valuation of available-for-sale financial assets and exchange differences on
translating the financial statements of foreign operations.) for fair value change for the year
ended December 31, 2017.
ii. The Company originally owned the emerging stock of Taiwan High Speed Rail
Corporation which was first publicly traded on October 27, 2016. However, for the year
ended December 31, 2015, the Company assessed that there had been objective evidence
of impairment given that the market price of the shares declined continuously fell. As of
December 31, 2017, the Company has recognized $189,091 as impairment loss.
iii. The Company recognised impairment loss of $3,065 on unlisted stocks.
iv. The Group has no available-for-sale assets pledged to others.
(b)Held-to-maturity financial assets
Items December 31, 2017
Current items:
Financial bonds $ -
Non-current items:
Financial bonds $ 100,000
i. The Group recognised interest income of $2,339 for amortised cost in profit or loss for the
year ended December 31, 2017.
ii. The counterparties of the Group’s investments have good credit quality.
iii. The Group has no held-to-maturity financial assets held by the Group pledged to others.
D. Credit risk information for the year ended December 31, 2017 are as follows :
(a) Credit risk refers to the risk of financial loss to the Group arising from default by the clients
or counterparties of financial instruments on the contract obligations. According to the
Group’s credit policy, each local entity in the Group is responsible for managing and
analysing the credit risk for each of their new clients before standard payment and delivery
terms and conditions are offered. Internal risk control assesses the credit quality of the
customers, taking into account their financial position, past experience and other factors.
Individual risk limits are set based on internal or external ratings in accordance with limits
set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit
risk arises from cash and cash equivalents, derivative financial instruments and deposits with
banks and financial institutions, as well as credit exposures to wholesale and retail customers,
including outstanding receivables. For banks and financial institutions, only independently
rated parties with a minimum rating of 'A' are accepted.
(b) For the year ended December 31, 2017, no credit limits were exceeded during the reporting
periods, and management does not expect any significant losses from non-performance by
these counterparties.
~110~
281
(c) The credit quality of accounts receivable that were neither past due nor impaired was in the
following categories based on the Group’s credit quality control policy.
December 31, 2017
Group 1 $ 1,438,533
Group 2 9,514,967
$ 10,953,500
Note:
Group 1: Low risk: The Group’s ten largest customers, with sound performance and high
transparency of financial information, are approved based on the Group’s credit
quality control policy.
Group 2: General risk.
(d) The ageing analysis of accounts receivable that were past due but not impaired is as follows:
December 31, 2017
Up to 30 days $ 1,749,509
31 to 180 days 273,040
$ 2,022,549
(e) Movement analysis of financial assets that were impaired is as follows:
2017
Individual provision Group provision Total
At January 1 ($ 99,075) $ - ($ 99,075)
Provision for impairment ( 21,646) - ( 21,646)
Reversal of impairment 18,569 - 18,569
Write-offs during the period 3,490 - 3,490
Net exchange differences 2,379 - 2,379
At December 31 ($ 96,283) $ - ($ 96,283)
(5) Effects of initial application of IFRS 15 and information on application of IAS 18 in 2017
A. The significant accounting policies applied on revenue recognition for the year ended December
31, 2017 are set out below.
(a) Sales of goods
account of business tax, returns, rebates and discounts for the sale of goods to external
customers in the ordinary course of the Group’s activities. Revenue arising from the sales of
goods is recognised when the Group has delivered the goods to the customer, the amount of
sales revenue can be measured reliably and it is probable that the future economic benefits
associated with the transaction will flow to the entity. The delivery of goods is completed
when the significant risks and rewards of ownership have been transferred to the customer,
the Group retains neither continuing managerial involvement to the degree usually associated
~111~
282
2018 Annual Report
with ownership nor effective control over the goods sold, and the customer has accepted the
goods based on the sales contract or there is objective evidence showing that all acceptance
provisions have been satisfied.
(b) Sales of services
when the outcome of services provided can be estimated reliably. The stage of completion of
a service contract is measured by the percentage of the actual services performed as of the
financial reporting date to the total services to be performed. If the outcome of a service
contract cannot be estimated reliably, contract revenue should be recognised only to the extent
that contract costs incurred are likely to be recoverable.
B. The revenue of the Group recognised by using above accounting policies for the year ended
December 31, 2017 are as follows:
Year ended December

31, 2017
Ship rental and slottage income 1,545,894
Container manufacturing income 1,659,315
Commission income and agency service income 1,366,761
Container income and others 10,652,412
$ 150,582,692
C. Under IFRS 15, liabilities are recognised as contract liabilities, but were previously presented as
other current liabilities-others in the balance sheet, the effects and description of current balance
sheet items if the Group continues adopting above accounting policies for the year ended
December 31, 2018

Balance by using
Balance by using previous accounting Effects from chages
Balance sheet items IFRS 15 policies in accounting policy
Contract assets - current $ 2,244,065 $ - $ 2,244,065
Accounts receivable, net 15,013,211 17,257,276 ( 2,244,065)
Contract liabilities- current ( 1,774,392) - ( 1,774,392)
Other current liabilities ( 22,615,978) ( 24,390,370) 1,774,392
There is no impact to the current comprehensive income.

(a) Contracts with customers where services were rendered but not yet billed, were previously
presented as accounts receivable on the balance sheet, and are recognised as contract assets in
accordance with IFRS 15 ‘Revenue from contracts with customers’.
(b) Contracts with customers in relation to advance service receipt in the previous period are
reclassified as contract liabilities in accordance with IFRS 15.
~112~
283
13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information
A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates
and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or
20% of the Company’s paid-in capital: Please refer to table 4.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in
capital or more: Please refer to table 5.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please
refer to table 6.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to table 7.
(2) Information on investees (not including investees in Mainland China)
Names, locations and other information of investee companies (not including investees in Mainland
China)Please refer to table 8.
(3) Information on investments in Mainland China
A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies
in the Mainland Area: None.
14. SEGMENT INFORMATION
(1) General information
Management has determined the operating segments based on the reports reviewed by the chief
operating decision-maker that are used to make strategic decisions.
There is no material change in the basis for formation of entities and division of segments in the
Group or in the measurement basis for segment information in this period.
~113~
284
2018 Annual Report
(2) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments
is as follows:
Transportation Other Adjustments and
Department Departments written-off Total
Revenue from
external customers $ 168,729,952 $ 506,701 $ - $ 169,236,653
Revenue from
internal customers 25,809,049 - (25,809,049) -
Segment revenue 194,539,001 506,701 ( 25,809,049) 169,236,653
Interest income 538,144 25,460 - 563,604
Interest expense ( 1,873,692) ( 6,732) - ( 1,880,424)
Depreciation
and amortisation ( 8,659,957) ( 212,931) - ( 8,872,888)
Share of income (loss) of
associates and joint
ventures accounted for
using equity method 1,602,737 ( 848,390) - 754,347
Other items ( 158,122,183) ( 483,705) - ( 158,605,888)
Segment profit (loss) $ 28,024,050 ($ 1,019,597) ($ 25,809,049) $ 1,195,404
Recognizable assets $ 192,189,335 $ 8,557,452 $ - $ 200,746,787

Investments accounted for
using equity method 21,780,248 6,484,920 - 28,265,168
Segment assets $ 213,969,583 $ 15,042,372 $ - $ 229,011,955
Segment liabilities $ 156,893,418 $ 1,150,701 $ - $ 158,044,119
~114~
285

Transportation Other Adjustments and
Department Departments written-off Total
Revenue from
external customers $ 148,746,685 $ 1,836,007 $ - $ 150,582,692
Revenue from
internal customers 17,503,128 - ( 17,503,128) -
Segment revenue 166,249,813 1,836,007 ( 17,503,128) 150,582,692
Interest income 417,798 19,156 - 436,954
Interest expense ( 1,336,931) ( 43,785) - ( 1,380,716)
Depreciation
and amortisation ( 7,410,359) ( 319,715) - ( 7,730,074)
Share of income (loss) of
associates and joint
ventures accounted for
Other items ( 135,361,899) ( 1,583,003) - ( 136,944,902)
Segment profit (loss) $ 23,959,514 $ 991,163 ($ 17,503,128) $ 7,447,549
Recognizable assets $ 168,476,948 $ 4,819,923 $ - $ 173,296,871
Investments accounted for

Segment assets $ 188,222,025 $ 11,857,872 $ - $ 200,079,897
Segment liabilities $ 131,942,538 $ 1,448,569 $ - $ 133,391,107
(3) Reconciliation for segment income (loss)

A. Sales between segments are carried out at arm’s length. The revenue from external parties
reported to the chief operating decision-maker is measured in a manner consistent with that in
the statement of comprehensive income.
B. The amounts provided to the chief operating decision-maker with respect to total assets are
measured in a manner consistent with that in the balance sheet.
C. The amounts provided to the chief operating decision-maker with respect to total liabilities are
measured in a manner consistent with that in the balance sheet.
D. The amounts provided to the chief operating decision-maker with respect to segment profit (loss)
are measured in a manner consistent with the income (loss) before tax from continuing
operations.
~115~
286
2018 Annual Report
(4) Trading information

Year ended December 31, 2018 Year ended December 31, 2017
% of Account % of Account
Service routes Amount Balance Amount Balance
North America $ 65,814,288 43 $ 52,789,741 39
Europe 32,141,861 21 37,900,327 28
Asia 33,672,426 22 29,778,828 22
Others 21,427,908 14 14,889,414 11
$ 153,056,483 100 $ 135,358,310 100
(5) Geographical information

Year ended December 31, 2018 Year ended December 31, 2017
Non-current Non-current
Service routes Revenue assets Revenue assets
Taiwan $ 31,626,116 $ 37,861,813 $ 26,534,097 $ 32,260,172
America 77,426,330 32,747,591 66,722,280 28,478,053
Europe 49,069,897 37,558,867 53,904,721 38,404,276
Asia 10,516,436 22,086,161 2,890,167 10,104,135
Others 597,874 7,496 531,427 8,122
$ 169,236,653 $ 130,261,928 $ 150,582,692 $ 109,254,758
(6) Major customer information

The Group provides services to customers all over the world. No single customer of the Group
accounts for more than 10% of the Group’s operating revenues.
~116~
287
288
Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.
Loans to others Marine Corporation
EvergreenLoans to others(Taiwan) Ltd. Loans to others
Loans to others
For the year ended December 31, 2018 For the year ended December
For the year ended December 31, 31,
2018 2018 For the year ended December 31, 2018
Table
Table 1 1 ExpressedExpressed in thousands
in thousands NTD
of ofNTD
(Except as otherwise indicated)
Collateral
Is a Maximum outstanding balance Amount of Allowance for Ceiling on total
Number General ledger Balance at December Actual amount Nature of loan Limit on loans granted to a short-term
Reason for Collateral
Collateral
Creditor Borrower related during the year ended December Interest rate transactions with loans granted Footnote
doubtful
imum (Note
outstanding 1)
balance Is a Maximum (Note 2)
accountoutstanding balance Is 31,
a 2018Amount
Maximum
(Note 8) of drawn down
outstanding balance (Note 4) single party (Note
AllowanceAllowance
Ceiling financing
Amount
forAmountfor
7) on total of of (Note 6) Allo
party 31, 2018 (Note 3) Item Value borrower (Note 5) (Note 7) accounts
Number
General ledger
Balance at December Actual amount GeneralBalance
Nature
ledger at
of December
loan Actual amount Reason for short-term
Nature
Balance
of at
loan
December Actual amount Reason Limit
for short-term
on loans
Nature
granted
of loanto a Reason
Limitfor on
short-term
loans granted to
gorrower
the year ended December Creditorrelated duringBorrower
the year ended Interest rate
December related
transactions
during the
with Interest
year ended rate
December doubtful
transactions with Interest rate doubtfultransactions
loans granted with Footnote d
(Note
account
1) (Note31,2)2018 (Note 8) drawn down account (Note
31,(Note
2018
2) 4)(Note 8) drawn down financing (Note 6)31, (Note
2018
4) (Note 8) drawn down financingsingle(Noteparty
6) (Note
(Note4)7) financingsingle
(Note
party
6) (Note 7)
party
31, 2018 (Note 3) Peony Investment Luanta Investment
31, 2018
Receivables from
(Note 3) party
borrower (Note
31, 2018
5) (Note 3)
3.4149~
accounts
borrower (Note
Working
Item 5)
capital Value
accounts borrower
(Note (Note
7)
Item 5) Value ac
1 Yes $ 76,426 $ 43,055 $ 43,055 2 $ - $ - None $ - $ 5,778,585 $ 14,446,463
S.A. (Netherlands) N.V. related parties 3.6056 requirement
Peony Investment Receivables from 3.3149~ Working capital

1 Clove Holding Ltd. Yes 707,331 618,145 2 - - None - 11,557,170 14,446,463 (Note 9)
vestment Receivables
S.A. Peony
fromInvestment Luantarelated parties
Investment 3.4149~
Receivables from 712,103 Working
3.4149~
3.6038 capital requirement Working
3.4149~
capital Working capital
1
76,426 $ Yes
43,055$ $ 43,055 76,426 $ 2 43,055
Yes$ $$ 43,055
- 76,426 $ 2 $ 43,055
$ - $
-$ None 43,055 - $ 5,778,585
2$ None -$
$$ - 14,446,463 - $ 5,778,585
$
nds) N.V. related parties
S.A. (Netherlands) N.V. related
3.6056parties 3.6056
requirement requirement
3.6056 requirement
Whitney Equipment Receivables from Working capital
2 Clove Holding Ltd. Yes 92,883 92,261 92,261 3.3981 2 - - None - 1,101,187 1,376,484 (Note 9)
LLC. related parties requirement
ReceivablesPeony
fromInvestment
Colon Container from 3.3149~
Receivables from Working
3.3149~ capital Working capital Working
3.3149~
lding Ltd. 2 1 Clove Holding Ltd.
712,103 707,331
Yes Clove Receivables
Holding 618,145
Ltd. Yes
712,103 2 371,532
707,331
Yes 369,042 618,145
- 295,234 3.4149~
712,103 2 2 707,331
- - -
None618,145 - - None -2
11,557,170 550,594
- 14,446,463 - (Note
None 1,376,484 - 9) 11,557,170
related parties
S.A. Terminal S.A. related parties related
3.6038parties 3.6063
3.6038
requirement requirement requirement
3.6038 requirement
Evergreen Marine Colon Container Receivables from 3.1694~ Working capital
3 Yes 83,595 83,034 66,428 2 - - None - 929,558 1,859,117
Equipment (Hong Kong)
Receivables related
fromLtd. Terminal S.A. Whitney parties
Equipment Receivables from Working
3.5794 capital requirement Working capital Working capital
92,883
2 Clove Holding Yes
Ltd.
92,261 92,261 3.3981
92,883 2 92,261
Yes 92,261
- 3.3981
92,883 2 92,261 - -
None 92,261 - 3.3981 2
1,101,187 - 1,376,484
None - (Note
- 9) 1,101,187
related parties LLC. related parties requirement requirement requirement
Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows
(1)The Company is ‘0’.
ntainer (2)The subsidiaries

Receivables starting from
from are numbered in orderColon ‘1’.
Container 3.4149~
Receivables from Working
3.4149~ capital Working
3.4149~
Note371,532
2:2Fill in theClove
name of Holding 369,042
Yes
account in which
Ltd.the loans are recognised,295,234
such as receivables–related 2 369,042
371,532parties, current account Yes
with 295,234
stockholders, prepayments, -
temporary 371,532
payments, etc. 2 369,042 - -
None295,234 - 2550,594 - 1,376,484
None - - 550,594
S.A. related parties Terminal S.A. related
3.6063parties 3.6063
3.6063 requirement
Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2018
Note 4: The column of‘Nature of loan’ shall fill in 1.‘Business transaction’ or 2.‘Short-term financing’.
ntainer Note
Receivables amount
5: Fill in theEvergreen
fromof business
Marine when nature
transactionsColon Container business transactions,
of the loan is related to3.1694~
Receivables fromwhich is the amount of business transactions occurred between the creditor
Working
3.1694~ and borrower in the current period.
capital Working
3.1694~
Note 6:83,595 Yes
83,034
3Fill in purpose of loan when nature of loan is for short-term financing, 83,595
66,428for example, 2
repayment of loan, acquisition 83,034
of Yes 66,428
equipment, working capital, -
etc. 83,595 2 83,034 - -
None 66,428 - 2929,558 - 1,859,117
None - - 929,558
S.A. related parties
(Hong Kong) Ltd. Terminal S.A. related
3.5794parties 3.5794
3.5794 requirement
Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company’s “Procedures for Provision of Loans”, and state each individual party to which the loans have been provided and
the calculation for ceiling on total loans granted in the footnote.
1. According to the Company's credit policy, the total amount of loans granted to a single company should not exceed 20% of the net worth stated in the latest financial statements.
sprovided by the
Note
Company
The ornumbers
1: PEONYǺUSDsubsidiaries
filled are
in for
as the
follows
loans provided by the Company or subsidiaries are as follows
939,500*30.7535*20%=5,778,585
Clove Holding
(1)The Company
Ltd.烉USDis89,517*30.7535*20%=550,594
‘0’.
Evergreen Marine (Hong Kong) Ltd.烉USD 151,130*30.7535*20%=929,558
in order starting from ‘1’.
(2)The subsidiaries are numbered in order starting from ‘1’.
The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements.
hparties,
the loans
current
are Note
recognised,
account
2: PEONYǺUSD
Fill
with
in
such
the 939,500*30.7535*40%=11,557,170
stockholders,
as
name
receivables–related
of account
prepayments,
in which
parties,
temporary
the loans
current
payments,
areaccount
recognised,
etc.
with stockholders,
such as receivables–related
prepayments, temporary
parties, current
payments,
account
etc.with stockholders, prepayments, temporary payments, etc.
2. According to the Company's credit policy, the total amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements.
alance
er 31, of
2018
loansNote
to others
3: Fill
during
in thethe
maximum
year ended
outstanding
December balance
31, 2018
of loans to others during the year ended December 31, 2018
Clove Holding Ltd.烉USD 89,517*30.7535*40%=1,101,187
lling’.
fill in 1.‘Business
Note transaction’
4: Evergreen
The columnMarine (Hong Kong) Ltd.烉USD
or 2.‘Short-term
of‘Nature of loan’151,130*30.7535*40%=1,859,117
financing’.
shall fill in 1.‘Business transaction’ or 2.‘Short-term financing’.
The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements.
sactions
ransactions,
whenwhich
nature
Noteis5:the
ofFill
the
amount
in
loan
theisof
amount
related
business
oftobusiness
business
transactions
transactions
transactions,
occurredwhen
between
which
nature
is the
theofcreditor
amount
the loan
and
ofisbusiness
borrower
related to
transactions
in
business
the current
transactions,
occurred
period.between
which the
is the
creditor
amountandofborrower
business in
transactions
the currentoccurred
period. between the creditor and borrower in the current period.
PEONYǺUSD 939,500*30.7535*50%=14,446,463
ment
of loan
of loan,
is foracquisition
short-term
Note 6: Clove
FillofHolding
financing,
in Ltd.烉USD
equipment,
purpose 89,517*30.7535*50%=1,376,484
forofexample,
working
loan whencapital,
repayment
nature
etc.
ofof
loan
loan,
is for
acquisition
short-term
of equipment,
financing, for
working
example,
capital,
repayment
etc. of loan, acquisition of equipment, working capital, etc.
Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in accordance with Article 14, Item 1 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies” should be included in its published balance of loans to others
ingle
ed inparty
the creditor
and Note
ceiling
company’s
7: on
Filltotal
in limit
“Procedures
loansongranted
loansforgranted
asProvision
prescribed
to a single
ofinLoans”,
the
party
creditor
and
andstate
ceiling
company’s
each onindividual
total
“Procedures
loansparty
granted
for
to which
Provision
as prescribed
the of
loans
Loans”,
inhave
the creditor
and
beenstate
provided
company’s
each individual
and “Procedures
party toforwhich
Provision
the loans
of Loans”,
have been andprovided
state each and individual party to which the loans have been provided and
at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public company has authorized the
loans granted inChairman
the footnote.
tothe funds in instalments
loancalculation in revolving
for orceiling onwithin
totalcertain
loanslines
granted one
and withinin the in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”, the published balance of loans to others at the end of the reporting period should also include
yearfootnote.
these lines of loaning approved by the Board of Directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration that they could be loaned again thereafter.
company
dit policy,should
the total
notamount
exceed
1. According
of20%loans
ofgranted
to
thethenetCompany's
worth
to a single
statedcredit
company
in thepolicy,
latest
should
the
financial
total
not exceed
amount
statements.
Note 9: This transaction was written off when the consolidated financial statements were prepared.
20%
of loans
of thegranted
net worth
to astated
singlein
company
the latestshould
financial
not statements.
exceed 20% of the net worth stated in the latest financial statements.
35*20%=5,778,585 PEONYǺUSD 939,500*30.7535*20%=5,778,585
17*30.7535*20%=550,594
Clove Holding Ltd.烉USD 89,517*30.7535*20%=550,594
) Ltd.烉USD 151,130*30.7535*20%=929,558
Evergreen Marine (Hong Kong) Ltd.烉USD 151,130*30.7535*20%=929,558
gt the
shares
totaldirectly
amountand
of loans
indirectly
The
granted
Company
in foreign
to a single
held
company,
company
100% that
voting
should
theshares
total
notamount
directly
exceedof40%
and
loans
indirectly
of granted
the netinworth
toforeign
a single
stated
company,
company
in the latest
that
should
the
financial
total
not exceed
amount
statements.
40%
of loans
of thegranted
net worth
to astated
singleincompany
the latestshould
financial
not exceed
statements.
40% of the net worth stated in the latest financial statements.
35*40%=11,557,170 PEONYǺUSD 939,500*30.7535*40%=11,557,170
tedit
exceed
policy,
40%theoftotal
the amount
net2.worth
According
of stated
loans granted
in
to the latest
Company's
should
financial
notcredit
exceed
statements.
policy,
40% the
of the
total
netamount
worth stated
of loans
in granted
the latestshould
financial
not statements.
exceed 40% of the net worth stated in the latest financial statements.
17*30.7535*40%=1,101,187
) Ltd.烉USD 151,130*30.7535*40%=1,859,117
Evergreen Marine (Hong Kong) Ltd.烉USD 151,130*30.7535*40%=1,859,117
Provision of endorsements and guarantees to othersProvision ofEvergreen Marine Corporation
endorsements and guarantees
(Taiwan) Ltd. to others Provision of endorsements and guarantees to others
Provision of endorsements and guarantees to others
For the year ended December 31, 2018 year
For the For ended
the year endedDecember
December 31, 31,
2018 2018 For the year ended December 31, 2018
Table
in thousands NTD
of ofNTD E
Ratio of
Party being endorsed/guaranteed accumulated
Ratio of
Outstanding Ratio of Provision of ProvisionRatio
of of
Party being endorsed/guaranteed Party being endorsed/guaranteed Maximum outstanding Amount of endorsement/ Ceiling on total Provision of
endorsement/
accumulated accumulated endorsements/ endorsements/
accumulated
Limit on endorsements/ endorsement/ endorsements/ guarantee amount of endorsements/
Number Outstanding guarantee amount Actual amount drawn
Outstanding Outstanding Provision of guarantees by
Provision guarantees
guarantees endorsements/ guarantees by parent
Endorser/Guarantor guarntees provided for a guarantee as of
of to the Footnote Provision of
(Note 1) Maximum outstanding Relationship with Maximum outstanding
Amount
amount of endorsement/
at December 31, Maximum
down (Note Ceiling
6) outstanding
on total Amount
amountofto netProvision of
endorsement/ Ceiling totalAmount
on subsidiary to parentofProvision of
endorsement/
party in Mainland Ceiling on total
endorsement/ single party (Note 3) December 31, 2018endorsement/ secured with asset value of guarantees provided company
endorsement/ to subsidiary
endorsements/ endorsements/ endorsements/ e
Limit on endorsements/ Company name
endorsement/ the endorser/
Limit on endorsements/ endorsement/ endorsements/ 2018
guarantee endorsement/
amount of
endorsements/ endorsements/
guarantee company
of endorsements/ endorsements/
Chinaguarantee amount of
(Note 4) Limit on endorsements/ collateral the endorser/ (Note 3) (Noteamount
7)
Number guaranteeguarantor
amount 2)
(NoteActual amount drawn guarantee (Noteamount5) Actual amount drawn guarantee amount Actualguarantees amount drawn by (Note 7)
guarantees to(Note
the 7) guarantees by gu
guarantee amount as of guarntees provided for a guarantee amount as
guarntees provided for a Endorser/Guarantor guarantees
of guarnteesamount provided to net endorsements/
for a guarantee amountguarantees guarantor
as of guarantees by parent
amount to net endorsements/guarantees guaranteesamountby parent
Footnote
to net endorsements/
h (Note 1) Relationship with at December 31, down (Note 6)
Relationship with at December 31, down (Note 6) company
at December 31, subsidiary
down (Noteto6)parent party in Mainland subsidiary to parent par
single party (Note 3) December 31, 2018 single party (Note 3) December 31, 2018
secured with single party
asset (Note
value 3)
of guarantees
December 31,
provided
secured
2018 with to subsidiary
company asset value of guarantees provided
securedcompany subsidiary
with toasset value of guarantees provided
Company name Evergreen Marine the endorser/ 2018
Company name the endorser/ 2018 2018 company China company
0 Greencompass
(Note 4) Marine S.A. 2 $ 133,688,460 47,652,627 $
(Note 4)$ collateral 43,599,149
the $
endorser/ 25,800,522 $
(Note 3)
4) -collateral65.22%(Note 7)167,110,575
$the endorser/ Y (Note 3) N
collateral N
(Note
the7)endorser/ (Note 3)
2) Corporation guarantor (Note 2) (Note 5) guarantor (Note 2) (Note 5) (Note 5) (Note 7) (Note 7) (Note 7)
guarantor guarantor guarantor
Evergreen Marine
0 Peony Investment S.A. 2 133,688,460 154,805 153,768
company - - 0.23% 167,110,575
company Y N N company
Corporation
Evergreen Marine
0 Evergreen Marine (UK) Limited
Evergreen Marine 2 133,688,460 38,039,795 34,190,847 29,061,383 - 51.15% 167,110,575 Y N N
reencompass
$ Marine Corporation
133,688,460
0S.A. $ 47,652,627
2 Greencompass
$$ 43,599,149
Marine
133,688,460
S.A.
$ $ 25,800,522
47,652,627
2 $ $$ - 43,599,149
133,688,460
65.22%
$ $25,800,522
167,110,575
47,652,627
$ $ - 43,599,149
Y 65.22%
$ $ 25,800,522
N 167,110,575
$ N- Y 65.22% $ N 167,110,57
Corporation
Evergreen Marine
0 Whitney Equipment LLC. 2 133,688,460 237,641 154,042 149,651 - 0.23% 167,110,575 Y N N
Corporation
Evergreen Marine
eony Investment133,688,460
S.A.0 Evergreen Marine 2 154,805 Peony Investment153,768
133,688,460
S.A. -2154,805 - 153,768
133,688,460
0.23% 167,110,575
- 154,805 - 153,768
Y 0.23% N 167,110,575
- N- Y 0.23% N 167,110,57
0 CorporationColon Container Terminal S.A. 6 33,422,115 2,253,961 2,238,855 2,238,855 - 3.35% 167,110,575 N N N
Corporation
Evergreen
Evergreen Balsam Investment (Netherlands)
Marine Marine
0 6 33,422,115 910,253 904,153 881,549 - 1.35% N N N
(UK) Corporation
vergreen Marine133,688,460
0 Limited N.V.
38,039,795
2 Evergreen 34,190,847
Marine
133,688,460
(UK) Limited 29,061,38338,039,795
2 - 34,190,847
133,688,460
51.15% 29,061,383
167,110,575
38,039,795 - 34,190,847
Y 167,110,575
51.15% 29,061,383
N 167,110,575 N- Y 51.15% N 167,110,57
Corporation
Evergreen Marine
0 Everport Terminal Services Inc. 2 133,688,460 1,745,064 1,627,942 1,395,973 - 2.44% 167,110,575 Y N N
Corporation
Evergreen Marine
hitney Equipment
133,688,460
LLC. 2 237,641
0 Evergreen Marine Evergreen Whitney Equipment
Marine (Hong Kong)
154,042
133,688,460
LLC. 149,6512237,641 - 154,042
133,688,460
0.23% 149,651
167,110,575
237,641 - 154,042
Y 0.23% 149,651
N 167,110,575 N- Y 0.23% N 167,110,57
0 Corporation 2 133,688,460 20,878,199 20,691,893 11,295,851 - 30.96% 167,110,575 Y N N
Corporation Ltd.
Evergreen Marine
olon Container Terminal
33,422,115
0 S.A. 2,253,961
6 Colon Container
2,238,855
33,422,115
Terminal S.A. 2,238,855
2,253,961
6 - 2,238,855
33,422,115
3.35% 2,238,855
167,110,575
2,253,961 - 2,238,855
N 3.35% 2,238,855
N 167,110,575 N- N 3.35% N 167,110,57
Corporation
alsam Investment (Netherlands)

Evergreen Marine Balsam Investment (Netherlands)
33,422,115
0 6 910,253 904,153
33,422,115 881,5496910,253 - 904,153
33,422,115
1.35% 881,549
167,110,575
910,253 - 904,153
N 1.35% 881,549
N 167,110,575 N- N 1.35% N 167,110,57
.V. Corporation N.V.
Evergreen Marine
0
verport Terminal133,688,460
Services Inc. 1,745,064
2 Everport Terminal
1,627,942
133,688,460
Services Inc. 1,395,973
1,745,064
2 - 1,627,942
133,688,460
2.44% 1,395,973
167,110,575
1,745,064 - 1,627,942
Y 2.44% 1,395,973
N 167,110,575 N- Y 2.44% N 167,110,57
Corporation
vergreen Marine (Hong Kong)

Evergreen Marine Evergreen Marine (Hong Kong)
133,688,460
0 20,878,199
2 20,691,893
133,688,460 11,295,851
20,878,199
2 - 20,691,893
133,688,460
30.96% 11,295,851
167,110,575
20,878,199 - 20,691,893
Y 30.96% 11,295,851
N 167,110,575 N- Y 30.96% N 167,110,57
td. Corporation Ltd.
2018 Annual Report
289
290
Provision of endorsements and guarantees to othersProvision ofEvergreen Marine Corporation
endorsements and guarantees
(Taiwan) Ltd. to others Provision of endorsements and guarantees to others
Provision of endorsements and guarantees to others
For the year ended December 31, 2018 year
For theFor ended
the year endedDecember 31, 2018
December 31, 2018 For the year ended December 31, 2018
Table
in thousands NTD
ofofNTD E
Ratio of
Ratio of
Outstanding Ratio of Provision of Ratio of
Provision of
Party being endorsed/guaranteed Party being endorsed/guaranteed Maximum outstanding Amount of endorsement/ Ceiling on total Provision of
endorsement/
accumulated accumulated endorsements/ endorsements/
accumulated
Limit on endorsements/ endorsement/ endorsements/ guarantee amount of endorsements/
Number Outstanding guarantee amount Actual amount drawn
Outstanding Outstanding Provision of guarantees by
Provision guarantees
guarantees endorsements/ guarantees by parent
Endorser/Guarantor guarntees provided for a guarantee amount as
of to the Footnote Provision of
(Note 1) Maximum outstanding Relationship with Maximum outstanding
Amount endorsement/
ofof at December 31, Maximum
down (Note Ceiling
6) outstanding
on total Amount
amountofto netProvision of
endorsement/ Ceiling totalAmount
on subsidiary to parent ofProvision of
endorsement/
party in Mainland Ceiling on total
endorsement/ single party (Note 3) December 31, 2018endorsement/ secured with of guarantees provided company
asset valueendorsement/ to subsidiary
endorsements/ endorsements/ endorsements/ e
Limit on endorsements/ Company name
endorsement/ the endorser/
Limit on endorsements/ endorsement/ endorsements/ 2018
guarantee endorsement/
amount of
endorsements/ endorsements/
guarantee company
of endorsements/ endorsements/
Chinaguarantee amount of
(Note 4) Limit on endorsements/ collateral the endorser/ (Note 3) (Noteamount
7)
Number guaranteeguarantor
amount 2)
(Note Actual amount drawn guarantee (Note
amount5) Actual amount drawn guarantee amount Actualguarantees amount drawn by (Note 7)
guarantees to(Note
the 7) guarantees by gu
guarantee amount as of guarntees provided for a guarantee amount as
guarntees provided for a Endorser/Guarantor guarantees
of guarnteesamount provided to net endorsements/
for a guarantee guarantor
amountguarantees
as of guarantees by parent
amount to net endorsements/ guarantees guaranteesamountby parent
Footnote
to net endorsements/
h (Note 1) Relationship with at December 31, down (Note 6)

Relationship with at December 31, down (Note 6) company
at December 31, subsidiary
down (Note parent party in Mainland
to 6) subsidiary to parent par
single party (Note 3) December 31, 2018 single party (Note 3) December 31, 2018
secured withsingle party
asset (Note 3)
value of guarantees
December provided
31,secured
2018 with to subsidiary
company asset value of guarantees provided
securedcompany subsidiary
with toasset value of guarantees provide
endorser/
Company name Evergreen Marine theEver 2018
Company name the endorser/ 2018 2018 company China company
2 (NoteShine
4) (Shanghai) Enterprise 2 $ 9,295,583 134,910 $
(Note 4)$ collateral the 71,662 $
endorser/ $
35,633 (Note
(Note 3)
4) -collateral 1.54%(Note 7) 11,619,479
$ the endorser/ N (Note 3) N
collateral (Note
Ythe
7)endorser/ (Note 3)
2) (Hong Kong) Ltd. Management
guarantor (NoteConsulting
2) Co., Ltd.
(Note 5) guarantor (Note 2) (Note 5) (Note 5) (Note 7) (Note 7) (Note 7)
guarantor guarantor guarantor
Evergreen Marine
2 Colon Container Terminal S.A. 6 2,323,896 507,141 503,742
company 503,742 - 10.84% 11,619,479
company N N N company
(Hong Kong) Ltd.
Master International
Ever Shine (Shenzhen) Enterprise
ver Shine (Shanghai) Shipping
3 Enterprise
Evergreen
Agency Co.,Marine Ever Shine (Shanghai) 1 Enterprise 81,691 76,987 76,987 76,987 - 94.24% 204,228 N N Y
$ 9,295,583
2 Ltd. $ Management
2 134,910Consulting
$$ Co., Ltd. 71,662
9,295,583
$ $ 35,633134,910
2 $ $$ - 71,662
9,295,583
1.54%
$ $$ 35,633
11,619,479
134,910
$ $ - N71,662 1.54%
$ $ N35,633
11,619,479
$ Y - N 1.54% $ N 11,619,47
anagement Consulting Co., (Hong
Ltd. Kong) Ltd. Management Consulting Co., Ltd.
Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
Evergreen
(1)The Company is ‘0’. Marine
olon Container Terminal
2,323,896 507,141
Colon Container
503,742
Terminal
2,323,896S.A. 503,742507,141
6 - 503,742
2,323,896
10.84% 503,742
11,619,479
507,141 - N
503,74210.84% N
503,742
11,619,479 N - N 10.84% N 11,619,47
(2)The subsidiaries
2 S.A. are numbered in6 order
(Hong Kong) Ltd. starting from ‘1’.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:
(1) Having
business relationship.
ver Shine (Shenzhen) Enterprise Ever Shine (Shenzhen) Enterprise
3 81,691
endorser/guarantor
Shipping parentAgency 1 76,987
Co.,
company directly
76,987
and indirectly owns more than 50%
81,691voting shares of76,987 176,987 -
the endorsed/guaranteed company.
76,987 94.24%
81,691 76,987 204,228
76,987 - N76,98794.24% N76,987204,228 Y - N 94.24% N 204,22
anagement Consulting
(2) TheCo., Ltd. Management Consulting Co., Ltd.
Ltd.
(3) The endorsed/guaranteed parent company directly and indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
(4) The parent company directly or indirectly owns more than 90% voting shares of the companies that make endorsements/guarantees for each other.
ndorsements/guarantees
or subsidiaries Note
are as
(5)1:The parent
follows:
The company
provided
numbers byfulfills
filled contractual
the itsCompany
in for theobligations by providing mutual
orendorsements/guarantees
subsidiaries are endorsements/guarantees
as follows: provided by for theanother
Company in the
companyor subsidiaries for joint
same industry orare builders for purposes of undertaking a construction project.
as follows:
(6) Due to joint venture, all capital contributing shareholders make endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3:
d in order starting Fill
from limit on
(2)The
in‘1’. endorsements/guarantees
subsidiaries provided for
are numbered ina single
orderparty and ceiling
starting on total
from ‘1’.amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s “Procedures for Provision of Endorsements and
Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.
teed
rser/guarantor
is classified
Note
and
into
the
2:the
Relationship
party
following
being endorsed/guaranteed
six
between
categories;
the endorser/guarantor
fill inisthe
classified
numberand into
of category
the
the party
following
each
being case
six
endorsed/guaranteed
categories;
belongs to: fill in the is classified
number ofinto category
the following
each casesix belongs
categories;
to: fill in the number of category each case belongs to:
The calculation is as follows:
. The Having
(1)Company: business relationship.
66,844,230*250% = 167,110,575
Limit on endorsement or guarantees provided by the Company for a single entity is $33,422,115 (Amounting to 50% of its net worth).
50%
t company
voting directly
shares ofand
(2)
theindirectly
The
endorsed/guaranteed
endorser/guarantor
owns more than
company.
parent
50%company
voting shares
directly
of the
andendorsed/guaranteed
indirectly owns morecompany.
than 50% voting shares of the endorsed/guaranteed company.
ǳǳWhen the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to $133,688,460.
nent
50%company ˢˢ According
voting directly
shares of
(3)
and
the
The
indirectly
endorser/guarantor
toendorsed/guaranteed
the credit owns Evergreen
policy ofmore Marine
subsidiary.
thanparent
50% (Hong
company
voting Ltd.,
Kong) sharesthe calculation
directly of the for
andendorser/guarantor
indirectly of endorsements/guarantees
total amountowns more
subsidiary.
than 50%is voting
as follows:shares of the endorser/guarantor subsidiary.
ǳǳ Ceiling on total amount of endorsements/guarantees: USD 151,130*30.7535*250% = 11,619,479
or
theindirectly
companies owns
thatmore
make
(4) The
than
endorsements/guarantees
parent
90% voting
company
shares
directly
of for
theoreach
companies
indirectly
other. owns
that make
moreendorsements/guarantees
than 90% voting shares of
forthe
each
companies
other. that make endorsements/guarantees for each other.
ǳǳ Limit on endorsements or guarantees provided for a single entityǺUSD 151,130*30.7535*50% = 2,323,896
ǳǳWhen
tsrsements/guarantees
contractual obligations
(5) the
forThe
another
byCompany
parent owns
providing
companymore
company than
mutual 50%
in the
fulfills
same shares
votingits of the endorsed/guaranteed
industry
contractual or for
obligations
joint company,
forbuilders
another the limit
by providing
for
company
purposesendorsement
on mutual
in the or guarantee
of undertaking provided
same industry a construction
or by Company
forthejoint forshould
builders
project. not
anotherforexceed
company
purposes its
200% ofin net
ofthe worth, which
undertaking
same equals
industry $9,295,583.
a construction
to or for jointproject.
builders for purposes of undertaking a construction project.
ǳǳ Ceiling on total amount of endorsements/guarantees of Master International Shipping Agency Co. : CNY 18,239*4.4789*250% = 204,228
uarantees
tal contributing
to the shareholders
endorsed/guaranteed
(6) Due maketo jointendorsements/guarantees
venture,
companyall incapital
proportioncontributing
to the
its ownership.
endorsed/guaranteed
shareholders make endorsements/guarantees
company in proportion to to itsthe
ownership.
endorsed/guaranteed company in proportion to its ownership.
ǳǳ Limit on endorsements or guarantees provided for a single entity of Master International Shipping Agency Co.ǺCNY 18,239*4.4789*100%=81,691 (100% of its net worth)
stry
urity
provide
for a performance
among Companies
Note 4:themselves
Fill
(7)inguarantee joint
the year-to-date in
and
a sales
the
several
ofmaximum same
contract
security
industry
outstanding for pre-construction
balance for
provide
a performance
among themselves
homes
guarantee
of endorsements/guarantees pursuant
provided as joint
of to
sales
andtheseveral
oftheareportingcontract
Consumer
period. security
for Protection
pre-construction
for a performance
Act forhomes
each
guarantee
other.
pursuant
of to
a sales
the Consumer
contract for
Protection
pre-construction
Act for each
homes
other.
pursuant to the Consumer Protection Act for each other.
Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors.
uarantees
total amount
provided
of
Note
for
3: Fill
a single
in limit
party
on and
ceiling
provided on total
as prescribed
amountprovided
of
in endorsements/guarantees
for a single party and company’s
provided
ceiling on “Procedures
astotal
prescribed
amount
for
inofProvision
the
endorser/guarantor
of Endorsements
company’s
provided
and “Procedures
as prescribed
for in
Provision
of Endorsements company’s
and “Procedures for Provision of Endorsements and
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
sividual
have been
partyprovided
which
toNote and
Guarantees”,
7: Fill the the
in ‘Y’ and
forcalculation
those cases state
for ceiling
each
of provision individual
on
have
total
been
amount
party
provided
of endorsements/guarantees by ofwhich
tolisted andthe
parent theendorsements/guarantees
calculation
company to subsidiary,for ceiling
provided
provision onhave
total
in the
by subsidiary amount
footnote.
to been
listed provided
parent of endorsements/guarantees
and
company, the calculation
and provision to the party inforprovided
ceiling
Mainland onintotal
China. the footnote.
amount of endorsements/guarantees provided in the footnote.
The calculation is as follows:
% = 167,110,575 The Company: 66,844,230*250% = 167,110,575
ntees
s $33,422,115
provided (Amounting
by the Company
Limittoon50%
endorsement
for of
a single
its netentity
worth).
or guarantees
is $33,422,115
provided
(Amounting
by the Company
to 50%for
of aitssingle
net worth).
entity is $33,422,115 (Amounting to 50% of its net worth).
ed than
company,
50% voting ǳǳWhen
the limit
shares
on endorsement
of the
theendorsed/guaranteed
Company
or guarantee
owns more
provided
company,
than 50%
by the
voting
limit
Company
shares
on endorsement
should
of the not
endorsed/guaranteed
exceed
or guarantee
200%provided
of its
company,
net by
worth,
thethe
Company
which
limit on
equals
should
endorsement
to $133,688,460.
not exceed
or guarantee
200% ofprovided
its net worth,
by thewhich
Company
equals
should
to $133,688,460.
not exceed 200% of its net worth, which equals to $133,688,460.
of
tion
Evergreen
for total amount
Marine
ˢˢ (Hong
ofAccording
Kong)toLtd.,
the credit
the calculation
policy
is asoffollows:
Evergreen
for total amount
Marine
of(Hong
Kong) Ltd., the calculation
is as follows:
for total amount of endorsements/guarantees is as follows:
%
orsements/guarantees:
= 11,619,479 ǳǳ Ceiling
USD 151,130*30.7535*250%
on total amount of endorsements/guarantees:
= 11,619,479 USD 151,130*30.7535*250% = 11,619,479
*30.7535*50% ǳǳ
rantees provided
= for
2,323,896
a single
Limit entityǺUSD
on endorsements
151,130*30.7535*50%
or guarantees provided
= 2,323,896
for a single entityǺUSD 151,130*30.7535*50% = 2,323,896
ed than
company,
50% voting ǳǳWhen
the limit
shares
on endorsement
of the
theendorsed/guaranteed
Company
or guarantee
owns more
provided
company,
than 50%
by the
voting
limit
Company
shares
on endorsement
should
of the not
endorsed/guaranteed
exceed
or guarantee
200%provided
of its
company,
net by
worth,
thethe
Company
which
limit on
equals
should
endorsement
to $9,295,583.
not exceed
or guarantee
200% ofprovided
its net worth,
by thewhich
Company
equals
should
to $9,295,583.
not exceed 200% of its net worth, which equals to $9,295,583.
Evergreen Marine Corporation (Taiwan) Ltd.
Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.
Holding of marketable securities at the end Evergreen
of theMarine
periodCorporation (Taiwan) Ltd.
(not including subsidiaries, associates and joint ventures)
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint Holding
ventures)
of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
Holding of marketable securities
Foratthethe end of the
year ended (not including subsidiaries,
period December 31, 2018associates and joint ventures)
For the year ended December 31, 2018 For the year ended December 31, 2018
For the year ended December 31, 2018
ressed
ressed in thousands of shares/thousands
in thousands
of NTD/thousands of foreign
shares/thousands of NTD/tho
of currency
Table
Table 3 3 ressed in thousands of shares/thousands of NTD/thousands of foreign currency re
(Except as otherwise indicated) (Exc
Relationship with the As of December 31, 2018
Securities held by Marketable securities (Note 1) Relationship with Genearl ledger account As of December 31, 2018 Footnote (Note 4)
Relationship
Marketable with the
securities (Note 1) securities issuer
the(Note 2)
Genearl ledger account of December
AsNumber
Relationship ofwith
sharesthe
31, Book
2018value (Note 3) Ownership (%) Fair value
As of Decembe
urities (Note 1) Securities held by Genearl ledger
Marketable
account securities
securities issuer(Note
(Note 1) 2) Genearl ledger account Footnote (Note 4)
Evergreen Marine Corporation securities
Stock: issuer (Note 2) securities issuer Number
(Note 2) of shares Book value (Note 3) Ownership (%) Fair value
Number of shares Book value (Note 3) Ownership (%) Fair value Number of shares Book value (Note 3)
Stock:
Evergreen Marine Corporation Financial asset measured at fair
Stock:
Power World Fund Inc. value through other comprehensive 677 $ 6,772 5.68% $ 6,772
income - non-current
Financial asset measured at fair
Financial asset measured at fair Financial asset measured at fair
Power World Fund Inc. Linden Technologies, Inc. value throughɃother comprehensive 50 677
40,423 $ 1.44% 6,772 40,423 5.68% $ 6,77
Power value
Worldthrough
Fund Inc.
other comprehensive 677 $ 6,772 value through
5.68%
other $comprehensive 6,772 677 $ 6,772
TopLogis, Inc. income - non-current Ƀ 2,464 income
18,906 - non-current 17.48% 18,906
Linden Technologies, Inc. Ever Accord Construction Corp. Other related party Ƀ Ƀ 9,317 105,258
50 17.50%
40,423 105,258 1.44% 40,42
Ƀ
Linden Technologies, Inc. 50 40,423 Ƀ
1.44% 40,423 50 40,423
Central Reinsurance Corp. Ƀ 49,866 850,223 8.45% 850,223
TopLogis, Inc. Ƀ 2,464 18,906 17.48% 18,90
TopLogis, Inc. Ƀ 2,464 18,906 Ƀ
17.48% 18,906 2,464 18,906
Financial bonds:
Ever Accord Construction Corp. Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 Other related party Financial asset measured
Ƀ at 9,317 105,258 17.50% 105,25
50,000 - 50,000
Other related party Ever Accord Construction Ƀ Corp. atmortised
9,317 cost - non-current Other 105,258
related party- 17.50%Ƀ 105,258 9,317 105,258
Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Ƀ - 50,000 - 50,000
Peony Investment S.A. Ƀ
Central Reinsurance Corp. 49,866 850,223 Ƀ
8.45% 850,223 49,866 850,223
Hutchison Inland Container Depots Ltd. value through other comprehensive 0.75 USD 209 7.50 USD 209
Financial bonds: income - non-current
Financial bonds:
South Asia Gateway Terminals (Private) Ltd. Ƀ 18,942 USD 20,226 5.00 USD 20,226
Financial asset measured at
Sunny
Evergreen
Subordinate
Bank 2ndAgency (Europe)
Financial Debentures-B Issue inFinancial
2015 asset measured at Financial
- asset measured at 50,000 - 50,00
ial Debentures-B Issue Shipping
in 2015 Sunny
Zoll Pool Hafen Hamburg AG Bank 2nd Subordinate Financial Debentures-B Issue in
atmortised
2015 - Ƀcost - non-current 50,000 10 EUR 10 - 2.86 50,000
EUR 10 - 50,000
GmbH atmortised cost - non-current atmortised cost - non-current
Sunny1:Bank
al Debentures-BNote
3rd Subordinate Financial Debentures-B Issue
IssueMarketable
in 2017securities in the table refer to stocks, bonds, beneficiary
Sunny certificates
in 2017
Bank and 3rdother
Subordinate Ƀ
related derivative securities within the scope of IFRS9, 'Financial instruments: recognition and measurement'. - 50,000 - 50,00
Ƀ Financial Debentures-B Issue in 2017 - 50,000 -Ƀ 50,000 - 50,000
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill
Peony Investment
in the amount S.A. acquisition cost
after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in theFinancial or amortised
asset measuredcost deducted
at fairby accumulated impairment for the
securities not measured at fair value. Financial asset measured at fair Financial asset measured at fair
Hutchison marketable
Inland Container Depots Ltd. value through other comprehensive 0.75 USD 209 7.50 USD 20
. Note 4: The number of shares of securities and their amounts pledgedHutchison Inland
as securityvalue through
or pledgedContainer
for loansother comprehensive
Depots
and their restrictions
Ltd.on use under some agreements should be0.75 stated in the footnote if USD
the securities presented value
209 herein have such through7.50
conditions. other comprehensive
USD 209 0.75 USD 209
income - non-current income - non-current
) Ltd.
South Asia Gateway Terminals (Private) Ltd.
South Asia Gateway Terminals Ƀ 18,942 USD 20,226 5.00 USD 20,22
Ƀ (Private) Ltd. 18,942 USD 20,226 5.00Ƀ USD 20,226 18,942 USD 20,226
e)
Zoll Evergreen
Pool HafenShipping
HamburgAgency
AG (Europe)
Zoll Pool Hafen Hamburg Ƀ
AG 10 Ƀ EUR 10
10
2.86Ƀ
EUR
EUR
10
10 10
2.86
EUR
EUR
10
1
GmbH
table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS9, 'Financial instruments: recognition and measurement'.
es and other related
Note derivative
1: Marketable
securities
securities
within
in the
the scope
table refer
of IFRS9,
to stocks,
'Financial
bonds,instruments:
beneficiary recognition
certificates and other
measurement'.
related derivative securities within the scope of IFRS9, 'Financial instruments: recognition and measurement'.
he issuer of marketable securities is non-related party.
rty. Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
sted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the
pairment for theNote
marketable
3: Fill insecurities
the amountmeasured
after adjusted
at fair value;
at fair fill
valuein the
andacquisition
deducted by cost
accumulated
or amortisedimpairment
cost deducted
for thebymarketable
accumulated securities
impairment
measured
for theat fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the
easured at fair value.
marketable securities not measured at fair value.
curities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.
ledged for loans Note
and 4:
their
Therestrictions
number ofon shares
use under
of securities
some agreements
and their amounts
should be
pledged
statedasinsecurity
the footnote
or pledged
if the securities
for loans and
presented
their restrictions
herein haveonsuch
useconditions.
under some agreements should be stated in the footnote if the securities presented herein have such conditions.
2018 Annual Report
291
292
Evergreen
(Taiwan)
Marine
Ltd.Corporation
Evergreen
(Taiwan)
Marine
Ltd.Corporation (Taiwan) Ltd.
Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital
same security
Acquisition or sale of the Acquisition or with
sale of accumulated
thethe Acquisition
same cost
security sale
exceeding
orwith of the
the same
$300 security
million
accumulated with
costor 20%
theofaccumulated
exceeding the Company's
$300 million paid-in
costorexceeding
20% ofcapital
the$300 million or
Company's paid-in of the Company's paid-in capital
20% capital
Table 4 For the
For the year ended December 31,year
2018ended December
For the
31, year
2018ended December 31, 2018 Expressed in thousands of shares/thousands of NTD
Table 4 (Except
Expressed in thousands ofExpressedas otherwise
shares/thousands indicated)
in thousands
of NTDofExpressed
shares/thousands
in thousands
of N
as otherwise
(Except Balance indicated)
(Except as otherwise indicat
as at December 31,
(E
Balance as at January 1, 2018 Addition (Note 3) Disposal (Note 3)
Marketable securities Counterparty Relationship with the 2018
Investor General ledger account
ȐNote 1ȑ (Note 2) investor (Note 2) Balance as at December
Balance as at January 1, 2018 Number
Balance as at
Addition
of January(Note
1, 2018
Balance
3) Number
as Addition
atofJanuary
(Note
1, 2018
3) Number of
Disposal
Addition
(Note
(Note Disposal Gain (loss)Balance
on Number
as atofDecember 31,
Disposal (Note 3)
Amount Amount Selling price
3) 3) Book value (Note 3) Amount
urities Marketable securities Marketable
Counterparty
securities Relationship Counterparty
with the Relationship
Counterparty
with the shares
Relationship with the shares shares disposal shares
2018 2018
r General
Investor
Evergreen ledger account General ledger account General ledger account
ȐNote 1ȑ Stock: ȐNote
(Note
1ȑ2) investor (Note(Note2)2) investor (Note
(Note
2) 2) investor (Note 2)
Marine Number of NumberNumber
of of NumberNumber
of Number
of of NumberNumber
of of Gain
Number
(loss) of
on Number Gain of (loss) on Number of Gain (loss) on
Amount Amount Amount Amount

AmountSelling price BookAmount
value
Selling price Book value Selling price Amount
Book value Amount
Corporation Financial asset measured at shares shares shares shares sharesshares shares
shares disposal
shares shares disposal shares disposal
Evergreen fair value through other
Stock: Taiwan HSR Consortium
Stock: 13,356 $ 329,329 - $ - 13,356 $ 342,661 $ 329,329 $ 13,332 - $ -
comprehensive income - non-
Marine current
Corporation
Financial asset measured Financial
at asset measured at Financial asset measured at
fair
Note value
1: through
Marketable securities
other infair
the value
table through
refer to other
stocks, bonds, fair value through
beneficiary other
certificates and other related securities.
rtiumTaiwan HSR Consortium Taiwan HSR Consortium 13,356 $ derivative
329,329 13,356 $ - 329,329 $ -
13,356 $ 13,356
- 329,329
$ $ - 342,661 13,356
-$ $ 329,329
$ -342,661
$ 13,332
13,356
$ 329,329
$ 342,661
$ - $ 13,332
$ 329,329
- $- $ 13,332
comprehensive income - non- comprehensive income - non- comprehensive income - non-
Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.
current current current
Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more.
Note 4: Paid-in capital referred to herein is the paid-in capital of parent company.
rketable
able refersecurities
to stocks,
Notein1:
bonds,
the
Marketable
table
beneficiary
refersecurities
to stocks,
certificates
inbonds,
the table
and
beneficiary
other
referrelated
to stocks,
certificates
derivative
bonds,
andsecurities.
beneficiary
other related
certificates
derivativeand
securities.
other related derivative securities.
erparty
in the columns
and relationship
Note
the counterparty
2: Fill
if securities
in the columns
andare
relationship
accounted
the counterparty
iffor
securities
underand
the
are
relationship
equity
accounted
method;
iffor
securities
under
otherwise
the
areequity
leave
accounted
the
method;
columns
for otherwise
under
blank.
the equity
leave the
method;
columns
otherwise
blank. leave the columns blank.
esregate
amounts
purchases
should
Note
and
be
3:calculated
sales
Aggregate
amounts
separately
purchases
shouldatand
betheir
calculated
sales
market
amounts
separately
values
should
to verify
atbe
their
calculated
whether
marketthey
values
separately
individually
to verify
at their
whether
reach
market
NT$300
they
values
individually
million
to verify
or whether
reach
20% ofNT$300
paid-in
they individually
million
capital or 20%
more.
reachofNT$300
paid-in million
capital or
or more.
20% of paid-in capital or more.
d-in
rein is
capital
the paid-in
referred
Notecapital
4:
to Paid-in
herein
of parent
iscapital
thecompany.
paid-in
referred
capital
to herein
of parent
is thecompany.
paid-in capital of parent company.
Evergreen
(Taiwan)
MarineLtd.
Corporation
Evergreen
(Taiwan)
Marine
Ltd.
Corporation (Taiwan) Ltd.
Purchases
Purchases or sales of goods or
from or sales
to related
Purchases parties
Purchases
ofor goods
sales offrom
goods or
reaching
from related
ortosales
orNT$100 parties
of goods
to related reaching
million
from
parties oror
20%
reaching NT$100
related
toNT$100 million
of paid-in
parties
capital
million 20%
or or
or reaching
20% of paid-in
NT$100
of more
paid-in capitalmillion
orcapital
more oror20%
moreof paid-in capital or more
For the year ended December the

For31,
For the yearyear
2018
ended December 31,
For the
endedDecember year
31,2018 ended December 31, 2018
2018
Table
Table 55 Expressed
Expressed ininthousands
thousands Expressed in thousand
(Except as otherwise indicated
(Exce
Differences in transaction
Differences
terms compared in transactionDifferences in transaction
to third
Transaction Notes/accounts receivable (payable)
terms compared toparty transactions
thirdterms compared to third terms compared to third
Relationship with the Transaction Transaction Transaction (Note 1) Notes/accounts receivable Notes/accounts
(payable) receivable Notes/accounts
(payable) receivable (payable)
Purchaser/Seller Counterparty party transactions party transactions party transactions Footnote (Note 2)
counterparty
Relationship with the Relationship with the Relationship with the (Note 1) (Note 1) (Note
urchaser/SellerCounterparty
Purchaser/Seller
Counterparty Counterparty Percentage of Percentage
1) of total Footnote (Note 2) Footnote (Note 2)
counterparty counterparty Purchases/
counterparty Amount total purchases/ Credit term Unit price Credit term Balance notes/accounts
sales
Percentage of Percentage
sales of Percentage of Percentage of total
receivable (payable) Percentage of total Percentage of tot
Purchases/ Purchases/ Purchases/
Evergreen Marine Corporation Amount total purchases/
Amount Credit purchases/
totalterm Amount Unit price total
Credit purchases/
Credit
term termUnit price
Credit
BalanceCredit
term term Unitnotes/accounts
price
Balance Credit term notes/accounts
Balance notes/accounts
Everport Terminal Services Inc. sales
Subsidiary sales
Purchases $ sales
1,455,870 30~60 days $ - - ($ 68,256) 1% (Note)
sales sales4% sales receivable (payable) receivable (payable) receivable (payabl
Marine Corporation
Everport Terminal Services
Everport
Inc. TerminalSubsidiary
Services
Everport
Inc. Terminal
Subsidiary
Services
Purchases Subsidiary Purchases
Purchases $ 1,580,488
4%
1,455,870
Purchases
30~60 days
$ 5%4%
1,455,870days
$ 30~6030~60
- days 4%
$-- ($ 30~60
- - 68,256)
(days 20,659)
-$ ($ (Note)
- 68,256)1% - - ($ (Note)68,256)
1% (Note)
Indirect
Inc. subsidiary
$ of the 1,455,870
Greencompass Marine S.A.
Company
Sales 1,497,882 4% 30~60 days - - 7,782 - (Note)
Purchases 1,580,488
Purchases 5%
1,580,488
Purchases
30~60 days 5%
1,580,488
30~60
- days 5%
- ( 30~60
- 20,659)
days - ( - 20,659) - - ( (Note)20,659) - (Note)
Indirect subsidiary of theIndirect subsidiary of theIndirect subsidiary of the
TaiwanGreencompass
Terminal ServicesMarine
Co., Ltd.S.A.Subsidiary Purchases 893,918 3% 30~60 days - - ( 79,666) 2% (Note)
Company Company Company
Sales 1,497,882
Sales 4%
1,497,882
Sales
30~60 days 4%
1,497,882
30~60
- days 4%
- 30~60
- days
7,782 - - 7,782 - - (Note) 7,782 - (Note)
Purchases 370,150 1% 30~60 days - - - -
Italia Marittima S.p.A. Associates
Taiwan
Co., Terminal
Ltd. Subsidiary
Services
Taiwan
Co., Ltd. Subsidiary
Terminal ServicesPurchases
Co., Ltd. Subsidiary
Purchases
893,918 3%
893,918
Purchases
30~60 days 3%893,918
30~60
- days 3%
- ( 30~60
- 79,666)
days - ( - 79,666)2% - ( (Note)79,666)
2% (Note)
Sales 408,890 1% 30~60 days - - 8,445 -
Evergreen International Storage and

Associates
Purchases Purchases
Purchases
370,150 1% 410,325
370,150
Purchases 30~60
30~60 days 1%1%370,150days
30~60
- days 1%
- 30~60
- - (days - 20,660)
- - - - -- - -
Transport Corp.
Italia Marittima S.p.A. Italia Marittima S.p.A.
Associates
Italia Marittima Associates
S.p.A. Associates
Evergreen Shipping Agency
Other related parties Purchases 363,380 1% 30~60 days - - - -
(America) Corporation Sales 408,890
Sales 1%
408,890
Sales
30~60 days 1%408,890
30~60
- days 1%
- 30~60
- days
8,445 - - 8,445 - - 8,445 -
Purchases 449,731 1% 30~60 days - - ( 2,390) -

Evergreen InternationalEvergreen
Storage and
International Storage
Evergreen andInternational Storage and
Associates AssociatesPurchases
Evergreen International Corp. Associates
Other related parties Purchases
410,325 1%
410,325
Purchases
30~60 days 1%410,325
30~60
- days 1%
- ( 30~60
- 20,660)
days - ( - 20,660) - - ( 20,660)-
Transport Corp. Transport Corp. Transport Corp.
Sales 1,739,984 5% 30~60 days - - 33,363 1%
Other related parties Other related
Purchases
parties Other related
Purchases
363,380
parties 1%
363,380
Purchases
30~60 days 1%363,380
30~60
- days 1%
- 30~60
- days - - - - - - --
(America) Corporation (America) Corporation (America) Corporation Purchases 250,536 1% 30~60 days - - ( 110) - (Note)
Indirect subsidiary of the
Evergreen Marine (UK) Limited
Company
Purchases Purchases
449,731
Sales 1%
449,731
Purchases
729,254 30~60
30~60 days 2%1%449,731
30~60 - days
days 1%
-- ( 30~60 2,390)
- - days (
-9,549 - 2,390) - - - ( (Note)2,390) -
Evergreen InternationalEvergreen
Corp. International
Other related
Corp.
Evergreen
parties
International
Other related
Corp.parties Other related parties
Sales Purchases
1,739,984
Sales 5% 181,192
1,739,984
Sales
30~60 days 1%5% 30~60
1,739,984days
30~60
- days 5%
-- 30~60
- - 33,363
days - - - 33,3631% - - 33,363
1%
Evergreen Marine (Singapore) Pte. Ltd. Other related parties
Sales 1,085,215 3% 30~60 days - - 11,453 -
Purchases Purchases
250,536 1%
250,536
Purchases
30~60 days 1%250,536
30~60
- days 1%
- ( 30~60
- days
110) - ( - 110) - - ( (Note) 110) - (Note)
Indirect subsidiary of theIndirect subsidiary of the
Evergreen Marine (UK)Evergreen
Limited Marine (UK) Evergreen
Limited Marine (UK) Limited Sales 112,920 - 30~60 days - - 1,751 - (Note)
Company Company Company
Evergreen Marine (Hong Kong) Ltd. Subsidiary
Sales 729,254
Sales 2%
729,254
Sales
30~60 days 2%729,254
30~60
- days 2%
- 30~60
- days
9,549 - - 9,549 - - (Note) 9,549 - (Note)
Purchases 577,182 2% 30~60 days - - - - (Note)
Purchases Purchases
181,192 1%
181,192
Purchases
30~60 days 1%181,192
30~60
- days 1%
- 30~60
- days - - - - - - - -
Evergreen Marine (Singapore)
Evergreen
Pte.Marine
Ltd. Other
(Singapore)
related
Evergreen
parties
Pte. Marine
Ltd. Other
(Singapore)
related parties
Pte. Ltd. Other related parties
Sales 1,085,215
Sales 3%
1,085,215
Sales
30~60 days 3%
1,085,215
30~60
- days 3%
- 30~60
- 11,453
days - - 11,453 - - 11,453 -
2018 Annual Report
293
Sales 112,920
Sales -112,920
Sales
30~60 days - 112,920
30~60
- days -- 30~60
- days
1,751 - - 1,751 - - (Note) 1,751 - (Note)
294
terms compared to third
party transactions
Relationship with the (Note 1)
Purchaser/Seller Counterparty Footnote (Note 2)
counterparty
Percentage of Percentage of total
Purchases/
Amount total purchases/ Credit term Unit price Credit term Balance notes/accounts
sales
sales receivable (payable)
Gaining Enterprise S.A. Other related parties Purchases $ 1,365,732 4% 30~60 days $ - - $ - -
Taipei Port Container Terminal Corp. Associates Purchases 107,467 - 30~60 days - - - -

Co.,Ltd. Evergreen Marine Corp. The parent Sales 893,918 100% 30~60 days - - 79,666 99% (Note)
Everport Terminal Services Inc.

Evergreen Marine Corp. The parent Sales USD 48,254 11% 30~60 days - - USD 2,219 6% (Note)
Investee of the Parent

Evergreen Marine (Singapore) Pte. Ltd. Sales USD 76,497 17% 30 days - - USD 4,825 13%
Company's major shareholder
Greencompass Marine S.A. Sales USD 43,105 10% 30 days - - USD 2,226 6% (Note)
Parent Company
Evergreen Marine (UK) Limited Sales USD 121,382 27% 30 days - - USD 5,916 16% (Note)
Parent Company
Investee of Balsam
Italia Marittima S.p.A. Investment (NetherLands) Sales USD 12,707 3% 30 days - - USD 858 2%
NV
Subsidiary of the Parent
Evergreen Marine (Hong Kong) Ltd. Sales USD 8,937 2% 30 days - - USD 440 1% (Note)
Company
Evergreen Shipping Agency Investee of the Parent
Purchases USD 8,745 2% 30 days - - - -
(America) Corporation Company's major shareholder
Evergreen Marine (Hong Kong)
Ltd. Sales USD 19,130 5% 30~60 days - - - - (Note)
Evergreen Marine Corp. The parent
Purchases USD 3,743 1% 30~60 days - - (USD 57) - (Note)
Sales USD 32,710 9% 30~60 days - - - - (Note)

Parent Company
Purchases USD 7,686 2% 30~60 days - - - - (Note)
Investee of Balsam Sales USD 6,667 2% 30~60 days - - - -

Italia Marittima S.p.A. Investment (NetherLands)
N.V. Purchases USD 5,813 2% 30~60 days - - - -
Sales USD 7,325 2% 30~60 days - - - -

Evergreen Marine (Singapore) Pte. Ltd.
Purchases USD 9,928 3% 30~60 days - - (USD 14) -
party transactions
counterparty
Purchases/
sales
Ltd. Sales USD 10,535 3% 30~60 days $ - - USD 903 1%
Purchases USD 11,723 4% 30~60 days - - - -
Sales USD 8,761 2% 30~60 days - - USD 130 - (Note)

Parent Company

Everport Terminal Services Inc. Purchases USD 8,937 3% 30 days - - (USD 440) 1% (Note)
Company
Master International Shipping Agency Indirect subsidiary of the
Purchases USD 3,538 1% 30~60 days - - (USD 3,538) 5% (Note)
Co., Ltd. Parent Company
Sales USD 53,300 2% 30~60 days - - USD 1,183 - (Note)
Parent Company


Everport Terminal Services Inc. Purchases USD 43,105 2% 30 days - - (USD 2,226) 1% (Note)
Company
Sales USD 85,897 3% 30~60 days - - USD 2,214 1%


Evergreen Shipping Agency (America) Investee of the Parent

Corporation Company's major shareholder
Evergreen International Corp. Purchases USD 12,860 - 30~60 days - - (USD 1,055) -
Evergreen Shipping Agency (Japan) Purchases USD 6,581 - 30~60 days - - - -
Evergreen Shipping Agency (Europe) Indirect subsidiary of the
GmbH Parent Company
2018 Annual Report
295
296
party transactions
counterparty
Purchases/
sales
Greencompass Marine S.A. Investee of the Parent
Evergreen Insurance Company Limited Purchases USD 5,094 - 30~60 days $ - - (USD 938) -
Evergreen Marine Co. (Malaysia) Indirect subsidiary of the
Purchases USD 5,446 - 30~60 days - - - - (Note)
SDN.BHD. Parent Company
Sales USD 7,686 - 30~60 days - - - - (Note)

Evergreen Marine (Hong Kong) Ltd.
Company
PT. Evergreen Shipping Agency Investee of Peony Investment

Indonesia S.A.
Parent Company
Purchases USD 53,300 3% 30~60 days - - (USD 1,183) 1% (Note)
Sales USD 8,304 - 30~60 days - - USD 4 - (Note)

Evergreen Marine Corp. The Parent

Everport Terminal Services Inc. Purchases USD 121,382 7% 30 days - - (USD 5,916) 3% (Note)
Company
Investee of Balsam Sales USD 12,041 1% 30~60 days - - USD 367 -

N.V. Purchases USD 17,127 1% 30~60 days - - (USD 364) -
Sales USD 26,722 2% 30~60 days - - USD 673 -



Company

Evergreen International Corp. Purchases USD 8,310 - 30~60 days - - (USD 226) -
Evergreen Insurance Company Limited Purchases USD 4,167 - 30~60 days - - - -
party transactions
counterparty
Purchases/
sales
Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) Indirect subsidiary of the
Purchases USD 6,671 - 30~60 days $ - - $ - - (Note)
GmbH Parent Company
Evergreen Heavy Industrial
Corp.(Malaysia) Berhad Gaining Enterprise S.A. Investee of EITC Sales MYR 64,925 21% 45 days - - - -

Evergreen Marine (Hong Kong) Ltd. Sales MYR 249,169 79% 45 days - - MYR 49,931 100% (Note)
Company
Evergreen Shipping Agency Indirect subsidiary of the
(Europe) GmbH Greencompass Marine S.A. Sales EUR 12,354 34% 30~60 days - - - - (Note)
Parent Company
Investee of Balsam
Italia Marittima S.p.A. Investment (NetherLands) Sales EUR 4,813 13% 30~60 days - - EUR 434 1%
NV
Evergreen Marine (UK) Limited Sales EUR 5,649 15% 30~60 days - - - - (Note)
Parent Company
Evergreen Marine (Singapore) Pte. Ltd. Sales EUR 9,921 27% 30~60 days - - EUR 892 2%
Master International Shipping Subsidiary of the Parent
Agency Co. Ltd. Evergreen Marine (Hong Kong) Ltd. Sales CNY 23,434 96% 30~60 days CNY 24,295 100% (Note)
Company
Note: This transaction was written off when the consolidated financial statements were prepared.
Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.
Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party
transactions.
2018 Annual Report
297
298
Evergreen Marine Evergreen Marine
Corporation Corporation
(Taiwan)
Evergreen Ltd. (Taiwan)
Marine Corporation
Ltd. (Taiwan) Ltd.
Receivables from Receivables
related from
parties related
Receivables
reaching parties
NT$100
fromreaching
related
million NT$100
parties
or 20% million
reaching
of or
paid-in 20%
NT$100
capitalof
million
orpaid-in
Receivables from related parties reaching NT$100 million or 20% of paid-in more orcapital
20%
capital oforpaid-in
or more more capital or more
December 31, 2018 December
December 31, 2018
31, 2018
December 31, 2018
able 6 Table
Table 66 ExpressedExpressedExpressed
in thousands
in thousands of in thousands
of
NTD/thousands
Expressedof NTD/thousands
NTD/thousands in
ofof
thousands
foreign of foreign currency
currency
foreigncurrency
of NTD/thousands of foreign
(Except
(Except as as otherwise
(Except
otherwise indicated)
as otherwise
indicated) indicated)
(Except as otherwise i
Balance as at Overdue receivables
Overdue receivables Amount collected
Amount collected
Relationship Balance
Relationship
withwith as at Balance as at Balance as Overdue
thethe at receivables Amount
Overduecollected
receivables Amount
Allowance forcollected for
Creditor Creditor Counterparty
Counterparty Relationship with the RelationshipDecember
December 31, 2018
with the31, 2018 Turnover
Turnoverraterate subsequent to the Allowance
subsequent for Allowance Footnote Allowance for
Footnote
reditor Creditor Counterparty Counterparty counterparty
December 31, 2018 Turnover rate
December 31, 2018 Turnover
Amount rate Action subsequent
taken to the doubtful
to thesubsequent
accounts to the Fo
counterparty counterparty counterparty (Note 1) Amount balance sheet datedoubtful accounts
Action taken doubtful Footnote
accounts doubtful accounts
(Note 1) Amount Action taken Amount
balance Action
balance taken
sheet date
balance sheet
Evergreen Marine Corp. Evergreen International Corporation (Note 1) $
Investee of the 212,956 (Note 1) - $ - - $ sheet date 211,519 $ - date
vergreen
Corp. Marine
Evergreen
Corp. Evergreen
Marine Corp. Evergreen
International International
Corporation
EvergreenCorporation
International
Investee ofCorporation
the Investee of
Company's Investee212,956
$ the major of
$ the 212,956
$ - $ 212,956- -$ - -$ - $ - $
- 211,519 $ 211,519
- $ $ - 211,519 $ - -
Company's major Company's
shareholder
majorCompany's major
shareholder shareholder
Peony Investment S.A. Clove Holding Ltd. (Note) Subsidiary shareholder USD 20,194 - - - - -
ony
S.A.Investment
Peony
S.A. Investment
Clove Holding Clove
S.A. Ltd. Holding Ltd.
(Note) (Note)
Clove Holding Subsidiary
Ltd. (Note) Subsidiary USD Subsidiary USD
20,194 20,194
USD- 20,194- - - - - - - - - - - -Note - -
Note Note
Evergreen Heavy Industrial Corp. Evergreen Marine (Hong Kong) Ltd.
Investee of the Parent MYR 49,931 - - - MYR 49,931 -
(Malaysia) Berhad Company's major
vergreen Evergreen Marine (Hong Kong) Ltd. Investee the Parent 49,931 MYR Note -
IndustrialHeavy
Corp.
Evergreen
IndustrialEvergreen
Heavy
Corp. Industrial
Marine Corp.
(Hong Kong) Evergreen
Ltd. Marine
Investee
(HongofKong)
the Parent
Ltd.shareholder
of MYR Investee 49,931
ofMYR
the Parent MYR- 49,931- - - - - MYR - -49,931 -49,931
MYR - 49,931 -
alaysia) Berhad
(Malaysia) Berhad Company's major
Company's majorCompany's major
Clove Holding Ltd. Colon Container Terminal, S.A. Investee of Clove Note Note
shareholder 9,689 - - - - -
shareholder shareholder USD
Holding Ltd. accounted
for using equity
love Holding Ltd.
d. Clove Holding
ColonLtd.
ContainerColon Container
Terminal, Terminal,
S.A. Colon Container
S.A.Investee
Terminal,
of Clove
S.A.Investee USD
of CloveInvestee of9,689
Clove 9,689
USD- 9,689- - - - - - - - - - - - - -
method USD
Holding Ltd. accounted Holding Ltd. accounted
for using
Note: This transaction was written off when the consolidated financial statements
for using
equitywere equity for using equity
prepared.
Note 1: Fill in separately the balances of accounts receivable–related
method method
parties, notes receivable–related parties,
methodother receivables–related parties, etc.
ote:
tionThis
was transaction
written
Note: was written
off This
when off when
transaction
the consolidated the
was writtenconsolidated
financial
off when financial
statements
the consolidated
werestatements
prepared.
financial
were statements
prepared. were prepared.
ote 1: Fill
arately separately
theinbalances
Note 1:ofFill balances
accounts
thein of accounts
separately
receivable–related receivable–related
the balances parties,
of accounts parties, notes receivable–related
notesreceivable–related
receivable–related parties,
parties,notes parties, other receivables–related
other receivable–related
receivables–related parties,
parties,other parties, etc.
etc. receivables–related parties, etc.
ote
pital2:referred capital
Paid-in to
Note
herein
2:referred
Paid-in to herein
is the paid-in
capital capital
referred
is theofpaid-in
toparentcapital
hereincompany.
is theofpaid-in company.
parent capital of parent company.
Significant inter-company transactions during
Significant
the reporting Evergreen Marine
inter-company
periods transactions (Taiwan)
CorporationduringSignificant
the
Ltd.reporting
inter-company
periods transactions during the reporting periods
Significant inter-company transactions during the reporting periods
Table
Table 7 7 Expressed
Expressed in thousands
in thousands NTD
ofofNTD Expressed i
(Except
(Except as as otherwise
indicated) (Except as
Transaction
Transaction Transaction Transaction
Number Percentage of consolidated total
Company name Counterparty Relationship (Note 2)
(Note 1) General ledger account Amount Transaction terms operating revenues or total assets
Number Percentage of consolidated total Percentage of
Company name Counterparty Company name
Relationship
Counterparty
(Note 2) Relationship
Counterparty
(Note 2) Relationship (Note 2) (Note 3)
(Note 1) General ledger account General
Amount
ledger account Transaction
General
terms
Amount
ledger account Transaction
operating revenues terms
Amount
or total assets operating reve
0 Evergreen Marine Corporation Taiwan Terminal Services Co.,Ltd. 1 Operating cost $ 893,918 Note 4 (Note 3) 0.53 (N
0 Evergreen Marine Corporation Greencompass Marine S.A. 1 Shipowner's account - debit 114,568 " 0.05
Evergreen Marine Corporation Greencompass $ revenue $1,497,882 0.89 893,918

rine
Taiwan
Corporation
Terminal Services
00 Co.,Ltd.
Evergreen Marine
TaiwanCorporation
Terminal Services Co.,Ltd.
1 Marine S.A.Taiwan TerminalOperating
Services Co.,Ltd.
cost
1 1 OperatingOperating cost
1 893,918 Note 4 Operating "cost893,918 $ Note 4 0.53
0 Evergreen Marine Corporation Greencompass Marine S.A. 1 Operating cost 1,580,488 " 0.93
rine
Greencompass
CorporationMarine
0 S.A. Evergreen Marine
Greencompass
CorporationMarine S.A. 1 Greencompass
Shipowner's
Marine S.A.
account
1 - debit Shipowner's account
1 114,568
- debit Shipowner's
" account114,568
- debit " 0.05 114,568
0 Evergreen Marine Corporation Evergreen Marine (UK) Limited 1 Shipowner's account - debit 675,749 " 0.30
rine
Greencompass
CorporationMarine Evergreen Marine
Greencompass
CorporationMarine S.A. Greencompass Operating
Marine S.A.
revenue Operating revenue
11,497,882 729,254
" Operating 1,497,882
revenue " 0.89
0.43 1,497,882
0 0 S.A.
Evergreen Marine Corporation Evergreen
1 Marine (UK) Limited 1 1 Operating revenue "
Evergreen Marine Corporation Evergreen Operating cost 250,536 1,580,488 0.15

0.93 1,580,488
rine
Greencompass
CorporationMarine
0 0 S.A. Evergreen Marine
Greencompass
CorporationMarine S.A. 1 Marine (UK) Limited
Greencompass Marine
Operating
S.A. cost
1 1 Operating cost
11,580,488 " Operating "cost "
0 Evergreen Marine Corporation Evergreen Marine (Hong Kong) Ltd. 1 Shipowner's account - credit 613,053 " 0.27
rine
Evergreen
Corporation
Marine (UK)
0 Limited
Evergreen Marine
Evergreen
Corporation
Marine (UK) Limited
1 Evergreen Shipowner's
Marine (UK)account
Limited
1 - debit Shipowner's account
1 675,749
- debit Shipowner's
" account675,749
- debit " 0.30 675,749
0 Evergreen Marine Corporation Evergreen Marine (Hong Kong) Ltd. 1 Operating revenue 112,920 " 0.07
rine
Evergreen
Corporation
Marine (UK)
00 Evergreen
Limited Marine Corporation
Evergreen Marine
Evergreen
Corporation
Marine (UK)Evergreen
Limited
1 Marine (Hong Kong) Ltd.
Evergreen Marine
Operating
(UK) Limited
revenue
1 1 Operating cost
Operating revenue
1 729,254 577,182
" Operating "
729,254
revenue " 0.43
0.34 729,254
0 Evergreen Marine Corporation Everport Terminal Services Inc. 1 Operating cost 1,455,870 " 0.86
rine
Evergreen
Corporation
Marine (UK)
0 Limited
Evergreen Marine
Evergreen
Corporation
Marine (UK) Limited
1 Evergreen MarineOperating
(UK) Limited
cost
1 Operating cost
1 250,536 " Operating cost250,536 " 0.15 250,536
1 Greencompass Marine S.A. Evergreen Marine (UK) Limited 3 Shipowner's account - debit 354,342 " 0.15
rine
Evergreen
Corporation
Marine (Hong Kong)
Evergreen Marine
Evergreen
Corporation
Marine (Hong Kong) Evergreen Shipowner's
Marine (Hongaccount
Kong) credit Shipowner's 1 613,053
- credit 986,885
Shipowner's
" account 613,053
- credit " 0.27
0.58
613,053
10 Greencompass
Ltd.Marine S.A. Evergreen
1 Marine
Ltd. (Hong Kong) Ltd. 1 -3 Ltd. Operating cost account "
Greencompass S.A. Everport Inc. Operating cost 1,300,513 " 112,920 0.77
0.07 112,920
rine
Evergreen
Corporation
Marine (Hong
10 Kong)
Evergreen
Ltd.Marine
Marine
Evergreen
Corporation
Marine (Hong Kong)
1 Terminal
Ltd. Services Evergreen Marine
Operating
(Hong Kong)
revenue
1 3 Ltd. Operating revenue
1 112,920 " Operating revenue "
1 Greencompass Marine S.A. Evergreen Marine Corp. (Malaysia) SDN BHD 3 Operating cost 164,311 " 0.10
rine
Evergreen
Corporation
Marine (Hong
0 Kong)
Evergreen
Ltd. Marine
Evergreen
Corporation
Marine (Hong Kong)
1 Ltd. Evergreen MarineOperating
(Hong Kong)
cost
1 3 Ltd. Operating cost
1 577,182 " " 0.34 577,182
2 Evergreen Marine (UK) Limited Greencompass Marine S.A. Operating revenue 968,342 Operating "cost577,182 0.57
rine
Everport
Corporation
Terminal 2Services
0 Evergreen
Inc. Marine (UK)
Evergreen Limited
Marine
Everport
Corporation Greencompass
Terminal Services Inc.
1 Marine S.A.Everport Terminal
Operating
Services cost
Inc.
1 3 Operating cost
Operating cost
11,455,870 1,608,121
" 1,455,870
Operating "cost " 0.86
0.95 1,455,870
2 Evergreen Marine (UK) Limited Ltd. Operating revenue 883,133 " 0.52
Evergreen Marine (UK)
Marine S.A. 1 Limited
Greencompass Evergreen Marine (UK)Evergreen
Marine S.A. Limited
3 Marine (Hong Kong)
Evergreen Shipowner's Limited
Marine (UK)account
3 3- debit 3 354,342
Shipowner's account - debit "
Shipowner's account354,342
- debit " 0.15 354,342
2 Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. 3 Operating cost 264,318 " 0.16
Evergreen
Marine S.A.
Marine (Hong Kong)
Greencompass
Ltd. Evergreen
Marine S.A.
Marine (Hong Kong)
(Hong Kong)
cost
3 3 Ltd. Operating cost
3 986,885 "
3,662,221 Operating "cost986,885 " 0.58
2.16
986,885
2
1 Evergreen Marine (UK) Limited Everport Terminal Services Inc. Operating cost
Marine (UK) Limited Everport Inc. payable 181,951 1,300,513 0.08

0.77 1,300,513
Everport
Marine S.A.
Terminal 2Services
1 Evergreen
Inc.
Greencompass Everport
Marine S.A.
Terminal Services Inc.
3 Terminal Services Everport TerminalOperating
Services cost
Inc.
3 3 Account Operating cost
31,300,513 " Operating "cost "
3 Evergreen Heavy Industrial Co., (Malaysia) Berhad Evergreen Marine (Hong Kong) Ltd. 3 Operating revenue 1,861,135 " 1.10
Evergreen
Marine S.A.
Marine Corp.
1 (Malaysia)
Greencompass
SDN BHD Evergreen
Marine S.A. 3
Marine Corp. (Malaysia) SDN BHD Evergreen MarineOperating 3
Corp. (Malaysia)
cost SDN BHD 3 164,311
Operating cost " Operating cost164,311 " 0.10 164,311
3 Evergreen Heavy Industrial Co., (Malaysia) Berhad Evergreen Marine (Hong Kong) Ltd. 3 Account receivables 369,255 " 0.16
rine
Greencompass
(UK) Limited
Marine
Greencompass
(UK) Limited
Marine S.A. 3 Greencompass Operating
Marine S.A. 3
revenue 3 968,342
Operating revenue 968,342
" Operating revenue " 0.57 968,342
rine
Greencompass
(UK) Limited
Marine
Greencompass
(UK) Limited
Marine S.A. 3 Greencompass Marine
Operating 3
S.A. cost 31,608,121
Operating cost " 1,608,121
Operating cost " 0.95 1,608,121
rine
Evergreen
(UK) Limited
Marine (Hong
2 Kong)
Evergreen
Ltd. Marine
Evergreen
(UK) Limited
Marine (Hong Kong)
3 Ltd. Evergreen Marine
Operating
(Hong Kong)
revenue
3 Ltd. Operating revenue
3 883,133 883,133
" Operating revenue " 0.52 883,133
rine
Evergreen
(UK) Limited
Marine (Hong
2 Kong)
Evergreen
Ltd. Marine
Evergreen
(UK) Limited
Marine (Hong Kong)
(Hong Kong)
cost
3 Ltd. 3 264,318
Operating cost " Operating cost264,318 " 0.16 264,318
rine
Everport
(UK) Terminal
Limited Services
2 Inc.
Evergreen Marine
Everport
(UK) Terminal 3
Limited Services Inc. Everport TerminalOperating 3
Services cost
Inc. 33,662,221
Operating cost " 3,662,221
Operating cost " 2.16 3,662,221
rine
Everport
(UK) Terminal
Limited Services
2 Inc.
Evergreen Marine
Everport
(UK) Terminal 3
Limited Services Inc. Everport Terminal
Account
Services 3
payable
Inc. 3 181,951
Account payable 181,951
" Account payable " 0.08 181,951
vy
Evergreen
Industrial
Marine
Co., (Malaysia)
(Hong
3 Kong)
Evergreen
Berhad
Ltd. Heavy
Evergreen
Industrial
Marine
Co., (Malaysia)
(Hong Kong)
3Berhad
Ltd. Evergreen Marine
Operating
(Hong Kong)
revenue
3 Ltd. 31,861,135
Operating revenue 1,861,135
" Operating revenue " 1.10 1,861,135
vy
Evergreen
Industrial
Marine
Co., (Malaysia)
(Hong
3 Kong)
Evergreen
Berhad
Ltd. Heavy
Evergreen
Industrial
Marine
Co., (Malaysia)
(Hong Kong)
3Berhad
Ltd. Evergreen Marine
Account
(Hong
receivables
Kong)
3 Ltd. Account receivables
3 369,255 369,255
" Account receivables " 0.16 369,255
2018 Annual Report
299
300
Transaction

(Note 3)
4 Evergreen Marine (Hong Kong) Ltd. Greencompass Marine S.A. 3 Operating cost $ 231,885 Note 4 0.14
4 Evergreen Marine (Hong Kong) Ltd. Greencompass Marine S.A. 3 Shipowner's account - credit 325,710 " 0.14
4 Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (UK) Limited 3 Shipowner's account - credit 234,668 " 0.10
4 Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. 3 Operating cost 269,625 " 0.16
4 Evergreen Marine (Hong Kong) Ltd. Master International Shipping Agency Co., Ltd. 3 Account payable 108,813 " 0.05
5 Master International Shipping Agency Co., Ltd. Evergreen Marine (Hong Kong) Ltd. 3 Operating revenue 106,357 " 0.06
6 Peony Investment S.A. Clove Holding Ltd. 3 Other receivables 621,046 " 0.27
7 Evergreen Shipping Agency (Europe) GmbH Greencompass Marine S.A. 3 Operating revenue 415,318 " 0.25
7 Evergreen Shipping Agency (Europe) GmbH Greencompass Marine S.A. 3 Shipowner's account - credit 385,266 " 0.17
7 Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Operating revenue 199,075 " 0.12
7 Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (Hong Kong) Ltd. 3 Shipowner's account - credit 188,978 " 0.08
Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between
subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;
for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company
(3) Subsidiary to subsidiary
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on
accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Terms are approximately the same as for general transactions.
Note 5: The Company may decide whether or not to disclose transaction details in this table based on the Materiality Principle.
Evergreen Marine Corporation (Taiwan) Ltd.Evergreen Marine Corporation (Taiwan) Ltd.Evergreen Marine Corporation (Taiwan) Ltd.
Information
Information on investees (not including investee Evergreen
companyonofinvestees
Mainland (not including
China)Marine Corporation
investee(Taiwan)
company
Information
Ltd. on
of investees China)
Mainland(not including investee company of Mainland China)
Information on investees (not including investee company of Mainland China)
For the year ended December 31, 2018 For the year ended December 31, 2018 For the year ended December 31, 2018
Table
Table 8 8 Expressed in thousands thousands
Expressed in of of shares/thousands
shares/thousands of NTD
Expressed
ofNTD in thousands of sha
Initial investment amount Shares held as of December 31, 2018

Initial investment amount Shares
Initialheld
investment
Shares as of December
Initial
held amount 31, 2018
investment
as of December
amount 31, 2018 SharesInvestment
held asincome (loss)
of December 31, 2018
Net profit (loss) of the investee
Investment recognised by the Company Investment income (loss)
Investor Investee (Note 1) Location Main business activities For the year ended December income (loss) Footnote
Balance as of Balance as of
investee Ownership
Number of Net profit (loss)
Net profit year ended
of the
For the (loss) of December
the investee Net profit (loss) of th
31, 2018recognised
(Note 1(2)) by the CompanyBook value recognised by the Company
December 31, 2018 December 31, 2017 shares (%) 31, 2018 (Note 1(3))
cation Investee (Note
Main Investor
business
1) activitiesLocation InvesteeMain
(Notebusiness
1) activities Location Main business activities For the year ended December For the year ended December Footnote For the year ended
Balance as of Balance as of Balance
Number asof of Ownership
Balance as of Number
Balance of
as of OwnershipBalance as ofFor the year Numberended Ownership
ofDecember For the year ended December
Book value 31, 2018 (Note 1(2)) Book value 31, 2018 (Note 1(2)) Book value 31, 2018 (Note
December 31,Republic shares31, 2018 (%)
2018 of December 31, 2017 December December 31, 2017 December
shares31, 2018 (%) December 31, 2017 31, 2018 shares
(Note 1(3)) (%) Subsidiary of31,
the 2018 (Note 1(3))
Evergreen Marine Corp. Peony Investment S.A. Investment activities $ 14,654,043 $ 14,654,043 4,765 100.00 $ 28,732,006 ($ 1,888,994) ($ 1,896,945)
Panama Company (Note)
Loading and discharging operations of

ublic of Taiwan Terminal
Republic Services
of Co., Ltd. Taiwan Republic of 55,000 55,000 5,500 55.00 53,286 27,476 15,112
SubsidiaryɃof the
ony Investment
Investment
Evergreen
S.A. activities
Marine Corp. Peony Investment
$ Investment
14,654,043
S.A. activities$container yards
14,654,043 $ Investment
14,654,043
4,765activities
$100.00 14,654,043
$ 28,732,006
$ ($ 14,654,043
4,765 100.00
$ 1,888,994)
$14,654,043
28,732,006
($ ($ 4,7651,896,945)
100.00
1,888,994)
$ 28,732,006
($ ($ 1,896,945)
nama Panama Panama Company (Note)
Everport Terminal Services Inc. U.S.A Terminal services 3,075 3,075 1 94.43 1,047,007 553,979 523,115 Ƀ
Marine (Hong Kong) Ltd. Hong Kong Marine transportation 6,438,245 6,320 79.00 7,218,598 979,323 773,665 Ƀ
Loading and dischargingEvergreen
operations of Loading and discharging operations of Loading and6,438,245
discharging operations of
aiwan
iwan Terminal Services Co., Ltd. Taiwan Terminal Services 55,000
Co., Ltd. Taiwan
55,000 5,500
55,000 55.00 55,000
53,286 5,500
55,000 55.00 27,476 55,000
53,286 5,500 15,11255.0027,476 Ƀ 53,286 15,112
container yards container yards container
Development, rental, sale of residential yards Investee accounted for
Charng Yang Development Co.,Ltd. Taiwan 320,000 320,000 58,542 40.00 544,057 171,613 68,645
and commercial buildings using equity method
erport
.S.A Terminal
Terminal
Services
services
Inc. Everport
U.S.A Terminal
Terminal
Services
services
3,075
Inc. U.S.A
3,075 Terminal services
13,075 94.43 1,047,007
3,075 13,075 3,075
94.43553,979 1,047,007 1 523,11594.43 1,047,007
553,979 Ƀ 523,115
Evergreen International Storage and Container transportation and gas
Taiwan 4,840,408 4,753,514 430,692 40.36 8,884,659 863,837 348,173 Ƀ
ergreen
g Kong Marine
Marine(Hong
transportation
Kong) Ltd. Transport Corporation
Hong
Evergreen
Kong Marine Marine(Hong
6,438,245 stations
transportation
Kong) Ltd. 6,438,245
Hong Kong Marine6,320
6,438,245
transportation79.00 6,438,245
7,218,598 6,320
6,438,245 79.00979,323
6,438,245
7,218,598 6,320 773,66579.00
979,323 Ƀ
7,218,598 773,665
Development, rental, saleEvergreen Security Corporation

of residential Taiwan
Development, rental,General
sale of security
residential
guards services Development, 25,000 25,000
rental, sale of residential 6,336 31.25 111,665 49,790 15,560 Ƀ
Investee accounted for I
aiwan
arng Yang Development Co.,Ltd. Charng
Taiwan Yang Development 320,000Co.,Ltd. Taiwan
320,000 58,542
320,000 40.00 320,000
544,057 58,542
320,000 40.00171,613320,000
544,057 58,542 68,64540.00
171,613 544,057 68,645
and commercial buildings and commercial buildings
International passengers and cargoand commercial buildings using equity method
EVA Airways Corporation Taiwan 10,767,879 10,767,879 714,825 16.31 10,334,116 6,552,827 1,068,918 Ƀ
transportation
Taipei Port Container Terminal Container distribution and cargo
ergreen International
Container transportation and gasEvergreen International
Storage and Corporation Taiwan
Container transportation
Storage and and gas 1,094,073
Container transportation and 1,094,073
gas 109,378 21.03 1,026,338 234,439 49,312 Ƀ
aiwan Taiwan 4,840,408 stevedoring 4,753,514
Taiwan 430,692
4,840,408 40.36 4,753,514
8,884,659 430,692
4,840,408 40.36863,837
4,753,514
8,884,659 430,692 348,17340.36
863,837 Ƀ
8,884,659 348,173
ansport Corporation
stations Transport Corporation
stations Republic of stations
Evergreen Marine (Latin America), S.A. Management consultancy 3,229 3,229 105 17.50 3,474 1,371 240 Ƀ
Panama
aiwan General
ergreen Security security guards services
Corporation Taiwan
Evergreen
VIP Greenport Joint StockSecurity
Company security
25,000
GeneralCorporation
Vietnamguards services
Terminal 25,000
servicesTaiwan General
6,336
security
25,000 guards
178,750 31.25
services 25,000
178,750 111,665
13,750 6,336
25,000
21.74 31.25
253,667 49,790 25,000
111,665 219,747 6,336 15,56031.25 49,790 Ƀ 111,665
47,771 Ƀ
15,560
International passengers and cargo International passengers and cargo International passengers and cargo Indirect subsidiary of
aiwan
A Airways Corporation EVA
Taiwan British Virgin
Airways Corporation
10,767,879 Taiwan
10,767,879 714,825
10,767,879 16.31 10,767,879
10,334,116 714,825
10,767,879 16.31
6,552,827
10,767,879
10,334,116 714,8251,068,91816.31
6,552,827 Ƀ
10,334,116 1,068,918
Peony Investment S.A.
transportation Clove Holding Ltd. transportation Investment holding company 1,616,074
transportation 1,616,074 10 100.00 2,752,969 42,847 42,847 the Company
Islands
(Note)
ipei Port Container
ContainerTerminal
distribution and
Evergreen Shipping
Port Container
cargoTaipei Agency Container Terminal
distribution and cargo Container distribution and cargo
aiwan Taiwan (Europe) 1,094,073 1,094,073
Taiwan 109,378
1,094,073 21.03 1,094,073
1,026,338
255,746 - 109,378
1,094,073
100.00 21.03234,439
299,158 1,094,073 109,378
1,026,338 17,957 49,31221.03
234,439 Ƀ
17,957 1,026,338
Ƀ(Note) 49,312
rporation stevedoring GmbH Corporation stevedoringGermany Shipping agency stevedoring 255,746
Evergreen Shipping Agency (Korea)
South Korea Shipping agency 74,608 74,608 121 100.00 48,857 12,772 12,772 Ƀ(Note)
ublic of Corporation
Republic of Republic of
ergreen Marine (Latin America),
Management S.A.
consultancy Evergreen Marine
Management America),
(Latin3,229
consultancy S.A. 3,229 Management
1053,229
consultancy
17.50 3,229
3,474 1053,229 17.50 1,371 3,229
3,474 105 24017.50 1,371 Ƀ 3,474 240
nama Evergreen Shipping
PanamaAgency (Poland) Panama
Poland Shipping agency - 20,359 2 100.00 - - - Ƀ(Note)
SP. ZO. O
Republic of
S.A. Marine transportation 10,871,362 10,871,362 100.00 ( ( 1,334,891) Ƀ(Note)
Petnam
Greenport
Terminal
Joint Stock
services
Company Greencompass
Vietnam
VIPMarine
Greenport Terminal Panama
Joint Stock
178,750
services
Company Vietnam
178,750 Terminal
13,750
178,750
services 21.74 178,750
253,6673,535 13,750
178,750 15,801,771
21.74219,747
178,750
253,6671,334,891)13,750 47,77121.74219,747 Ƀ 253,667 47,771
Evergreen Shipping Agency (India) Pvt.
India Shipping agency 36,188 36,188 100 99.99 142,568 45,819 45,818 Ƀ(Note)
Ltd.
Indirect subsidiary of
sh Virgin British
Evergreen Virgin
Argentina S.A. Argentina Leasing British Virgin 4,305 4,305 150 95.00 970 ( 7,407) ( 7,037) Ƀ(Note)
ove Holding
Investment
Ltd.
Peony Investment
holding company
S.A. Clove Holding Investment
Ltd. 1,616,074
holding company 1,616,074 Investment
1,616,074
10holding100.00
company 1,616,074
2,752,969 1,616,074
10 100.00 42,847
1,616,074
2,752,969 10 42,847
100.0042,847
the Company
2,752,969 42,847
lands Islands Islands
(Note)
ergreen Shipping Agency (Europe) Evergreen Shipping Agency (Europe)

rmany Shipping agency Germany Shipping 255,746
agency Germany
255,746 Shipping255,746
agency
- 100.00 255,746
299,158 255,746
- 100.00 17,957255,746
299,158 - 17,957 Ƀ(Note)
100.0017,957 299,158 17,957
2018 Annual Report
301
bH GmbH
ergreen Shipping Agency (Korea) Evergreen Shipping Agency (Korea)
th Korea Shipping agency South Korea Shipping agency
74,608 South
74,608
Korea Shipping121
agency
74,608 100.00 74,608
48,857 121
74,608 100.00 12,772 74,608
48,857 121 12,772 Ƀ(Note)
100.0012,772 48,857 12,772
rporation Corporation
302
Investment income (loss)
recognised by the Company
Investor Investee (Note 1) Location Main business activities For the year ended December Footnote
Balance as of Balance as of Number of Ownership For the year ended December
Book value 31, 2018 (Note 1(2))
Loading and discharging operations of Indirect subsidiary of

Peony Investment S.A. PT. Multi Bina Pura International Indonesia container yards and inland $ 241,137 $ 241,137 17 95.03 $ 502,803 $ 114,147 $ 108,473 the Company
transportation (Note)
Container repair, cleaning and inland

PT. Multi Bina Transport Indonesia 24,735 24,735 2 17.39 14,248 5,914 1,028 Ƀ(Note)
transportation
Evergreen Heavy Industrial Corp.

Malaysia Container manufacturing 839,412 839,412 42,120 84.44 1,002,482 53,652 45,304 Ƀ(Note)
(Malaysia) Berhad
Armand Investment (Netherlands) N.V. Curacao Investment holding company 354,050 354,050 4 70.00 323,664 20,198 14,139 Ƀ(Note)
Evergreen Shipping (Spain) S.L. Spain Shipping agency 207,442 207,442 6 100.00 236,380 151,681 151,681 Ƀ(Note)
Evergreen Shipping Agency (Italy)

Italy Shipping agency 72,332 72,332 0.55 55.00 91,804 70,370 38,704 Ƀ(Note)
S.p.A.
Evergreen Marine (UK) Limited U.K Marine transportation 4,124,126 2,555,697 765 51.00 1,529,399 ( 1,333,238) ( 679,951) Ƀ(Note)
Evergreen Shipping Agency (Australia)
Australia Shipping agency 52,539 7,599 1 100.00 124,808 125,187 84,501 Ƀ(Note)
Pty. Ltd.
Evergreen Shipping Agency (Russia)
Russia Shipping agency 26,079 26,079 - 51.00 19,007 73,185 37,324 Ƀ(Note)
Ltd.
Evergreen Shipping Agency (Singapore)
Singapore Shipping agency - 66,335 765 51.00 - - - Ƀ(Note)
Pte. Ltd.
Evergreen Shipping Agency (Thailand)
Thailand Shipping agency 68,980 61,199 680 85.00 105,232 78,830 67,005 Ƀ(Note)
Co., Ltd.
Evergreen Agency (South Africa) (Pty)
South Africa Shipping agency 17,868 17,868 5,500 55.00 100,350 127,945 70,370 Ƀ(Note)
Ltd.
Evergreen Shipping Agency (Vietnam)
Vietnam Shipping agency 37,858 13,962 - 100.00 167,404 138,967 138,967 Ƀ(Note)
Corp.
Investee company of
PT. Evergreen Shipping Agency
Indonesia Shipping agency 29,923 29,923 0.441 49.00 123,188 99,136 48,577 Peony accounted for
Indonesia
using equity method
Luanta Investment (Netherlands) N.V. Curaçao Investment holding company 1,461,999 1,453,949 460 50.00 1,933,827 ( 12,120) ( 6,060) Ƀ
Balsam Investment (Netherlands) N.V. Curaçao Investment holding company 12,091,859 11,639,782 0.451 49.00 658,599 ( 2,207,677) ( 1,081,762) Ƀ
Green Peninsula Agencies SDN. BHD. Malaysia Investment holding company 223,117 223,117 24 30.00 65 ( 380) ( 114) Ƀ
Evergreen Shipping Agency Co. United Arab

Shipping agency 64,029 64,029 - 49.00 78,903 80,200 39,298 Ƀ
(U.A.E.) LLC Emirates
Renting estate and storehouse
Greenpen Properties Sdn. Bhd. Malaysia 13,102 13,102 1,500 30.00 41,527 14,145 4,243 Ƀ
company
Evergreen Marine Corp. (Malaysia)
Malaysia Shipping agency 289,519 3,788 500 100.00 592,961 250,142 250,142 the Company
SDN.BHD.
(Note)
Investee company of
Peony accounted for
Evergreen Marine (Hong Kong) Ltd. Hong Kong Marine transportation 81,497 81,497 80 1.00 91,375 979,323 9,793
using equity method
(Note)
Investee company of
Peony accounted for
Peony Investment S.A. Ics Depot Services Snd. Bhd. Malaysia Depot services $ 34,259 $ - 286 28.65 $ 60,962 $ 49,639 $ 6,591
using equity method
(Note)
Armand Investment
Armand Estate B.V. Netherlands Investment holding company 520,839 520,839 - 100.00 466,259 20,915 20,915 the Company
(Netherlands ) N.V.
(Note)
Investee company of
Taipei Port Container Terminal Container distribution and cargo Armand Estate B.V.
Armand Estate B.V. Taiwan 50,602 50,602 50,602 9.73 474,046 234,439 22,811
Corporation stevedoring accounted for using
equity method
Investee company of
Republic of Clove Holding Ltd.
Clove Holding Ltd. Colon Container Terminal, S.A. Inland container storage and loading 703,025 703,025 22,860 40.00 2,645,712 50,352 20,141
Panama accounted for using
equity method
Investee company of
Clove Holding Ltd.
Everport Terminal Services Inc. U.S.A Terminal services 200,019 - 0.059 5.57 221,434 553,978 30,863
accounted for using
equity method (Note)
Investee company of
Evergreen Marine
Evergreen Marine (UK) Republic of
Evergreen Marine (Latin America), S.A. Management consultancy 3,045 3,045 99 16.50 3,275 1,371 226 (UK) Limited
Limited Panama
accounted for using
equity method
Investee company of
Everport Terminal
Everport Terminal
Whitney Equipment LLC. U.S.A Equipment Leasing Company 6,151 - - 100.00 192,943 23,716 23,716 Services Inc.
Services Inc.
accounted for using
PT. Multi Bina Pura Container repair cleaning and inland
PT. Multi Bina Transport Indonesia 101,530 101,530 8 72.95 59,771 5,914 4,314 the Company
International transportation
(Note)
Investee company of
Evergreen Marine
Evergreen Marine (Hong Republic of
Colon Container Terminal S.A. Inland container storage and loading 479,755 - 5,143.5 9.00 615,720 50,352 3,666 (Hong Kong) Limited
Kong) Limited Panama
accounted for using
equity method
Republic of
Evergreen Marine (Latin America), S.A. Management consultancy 3,045 3,045 99 16.50 3,275 1,371 226 Ƀ
Panama
Evergreen Shipping Service (Cambodia)
Cambodia Shipping agency 6,151 3,998 200 100.00 12,376 6,107 6,107 the Company
Co., Ltd.
(Note)
2018 Annual Report
303
304
Evergreen Marine (Hong Evergreen Shipping Agency (PERU)
Peru Shipping agency $ 8,537 $ - 900 60.00 $ 23,570 $ 25,292 $ 15,175 the Company
Kong) Limited S.A.C.
(Note)
Evergreen Shipping Agency (Colombia)

Colombia Shipping agency 10,796 0 80 100.00 ( 574) ( 10,981) ( 10,981) Ƀ(Note)
S.A.S
Evergreeb Shipping Agency (Mexico)

Mexico Shipping agency 7,049 - 44.40 60.00 10,580 5,819 3,491 Ƀ(Note)
S.A. DE C.V.
Evergreeb Shipping Agency

Chile Shipping agency 9,805 0 1.5 60.00 17,097 13,135 7,881 Ƀ(Note)
(CHILE)SPA.
Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding
company about the disclosure of related overseas investee information.
Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:
(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, ‘Initial investment amount’ and ‘Shares held as at December 31, 2018’ should fill orderly in the Company’s (public company’s) information on investees and every
directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.
(2) The ‘Net profit (loss) of the investee For the year ended December 31, 2018’ column should fill in amount of net profit (loss) of the investee for this period.
(3) The‘Investment income (loss) recognised by the Company For the year ended December 31, 2018’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and
recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should
confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.
Information on investments in Mainland China Evergreen
Information onMarine
investments (Taiwan)
Corporationin Ltd.
Mainland China Information on investments in Mainland China
Information on investments in Mainland China
Table
in thousands NTD
ofofNTD Expre
Amount remitted from Taiwan to Investment income
Amount remitted from Taiwan to Amount Mainland China/Amount
remitted from Taiwan
remitted to remitted Taiwan Accumulted amount of
Accumulated amount of Accumulated amount of Amount
Net income (loss)
Investment of Ownership
from held
income by (loss)
to recognised by of
Book value Investment income Invest
investment income
Mainland China/Amount Investment
remittedmethod remittance from Taiwan
Mainland
to Taiwan for the year ended remittance from Taiwan the investee
to backChina/Amount remitted Mainland for the the Company
China/Amount remitted the Company. investments
Accumultedin amount Accumulte
Investee in Main business Paid-in capital remitted
of to
Accumulated
Mainland China amount of activities Accumulated
(Note 1) amount
Accumulated
Mainland
ofChina amount
as of December
of Net income 2018
31,Accumulated amount
Accumulated
(loss) of toOwnership
Mainland ofheld
China amount
as of by (loss)
year ended income
ofrecognised
Net(direct of by
indirect) Book
(loss)For value
Accumulated
oftheOwnership
year held amount
endedof MainlandbyChina(loss)
as of Net income
of recognised backby (loss)Footnote
of
BookOwnership
value of held by (loss)
back to Taiwan for the year ended back to Taiwan the year ended back Taiwan the investment Taiwan as of December
income investme
Investment method remittance from Taiwan to Investment method remittance fromremittance
Taiwan
Januaryto 2018
1,from Taiwan
Investment method
Remitted investee
thetofor remittance
for
Remitted the
back to fromDecember
the 31, 2018
remittance
Taiwan
Company to from December
Taiwan31, 2018
to the thefor (%)year
investee
Company. December
forended
the 31, 2018
investments
remittance
the Company
in December
from 31, 2018
Taiwan the investee for theinvestments
the Company. the Company
in the
Main business activities
Investee in Mainland
Paid-in China
capital Main business
December activities
31, 2018 Paid-in capital December
Mainland China 31, 2018
Taiwan December 31, 2018 (Note 2(2)B) remitted back31,to2018 Footnote remitte
(Note 1) Mainland China as of (Note 1) Mainland China to Mainland
as of China(Note
as of 1) year ended
Mainland China (direct
to as
Mainland
ofofindirect)ChinaFor as ofthe year year
ended ended Mainland (direct
China
to Mainland
ofasindirect)
of China For as ofthe yearyear endedendedMainland (direct
China
of as
indirect)
of For th
Inland container
Taiwan as of December Taiwan as
January 1, 2018 Remitted to RemittedJanuary
back to 1, 2018December 31,Remitted2018 toDecember 31,January
Remitted 2018
back to1, 2018 December
(%) 31, 2018
December
Remitted toDecember 201831, December
31,Remitted back
2018 to 31, December
(%)
2018 31, 2018 December December
31, 2018 31, 2018
December 31,(%) 2018 Dece
transportation, container 31, 2018 31,
Ningbo Victory Container Co., Ltd. storage, loading, Mainland $ China559,746 Taiwan (2) $ 220,241 $
Mainland China - $ Taiwan - $ 220,241 $ (Note
Mainland China 25,341 2(2)B) 40.00
Taiwan $ 10,137 $ 277,074 (Note
$ 2(2)B) - (N
discharging, repair and
related activities
Inland container Inland container
Inland container
transportation, container transportation, container
transportation, storage,
Qingdao Evergreen Container
. storage,(2)
loading,
Ningbo Victory
$ 559,746
220,241
Co., Ltd.
$Containerloading, storage,
$
discharging, (2) $ $
loading,-190,353 $(2) - $559,746
220,241 220,241
$43,575 (2) $- -$ $ 25,341- - $220,24140.00
43,575 $ 220,241 $
$ 219,369$- 10,137 25,341
$
40.00 - 277,07440.00
$ 87,747 $ 220,241
$
191,016 $ 10,137
- 25,341
- $ 277,074
40.00$ $
Storage & Transportation Co., Ltd.
discharging, repair and repair, cleaning and
discharging, repair and
related activities
related activities related activities
Inland container
Kingtrans Intl. Logistics (Tianjin)
Inland container Inland container
loading, discharging, 349,038 (2) 123,014 168,076 - 291,090 28,027 56.00 11,631 246,811 - (Note)
transportation, Ltd.
Co.,storage, transportation, storage,
repair, cleaning and
Qingdao Evergreen Container related activities
discharging,
loading,(2) 190,353
43,575 loading, (2) discharging,
- - 190,353
43,575 43,575
(2) - 219,369 - 43,57540.00 43,575 - 87,747219,369 - 191,01640.00 43,575 87,747
- 219,369 191,016
40.00
. Storage & Transportation Management Co., Ltd.consultancy,
repair, cleaning
Everand
Shine (Shanghai) Enterprise repair, cleaning and
self-owned property 1,945,977 (2) 2,505,191 - - 2,505,191 22,555 80.00 ( 56,013) 3,332,384 - (Note)
Management Consulting Co., Ltd.
related activities related activities
leasing
Inland container Management consultancy,

Inland container
Ever Shine (Ningbo) Enterprise
192,593 (2) 277,147 - - 277,147 ( 1,239) 80.00 ( 934) 152,305 - (Note)
Management
transportation, storage,Consulting Co., Ltd. self-owned property
leasing
Kingtrans Intl. Logistics (Tianjin)
loading,(2)
discharging, 349,038
123,014 loading,168,076 (2)
discharging, - 349,038
123,014 291,090
(2)
168,076 28,027 - 123,01456.00 291,090
168,076 11,631 28,027 - 246,81156.00291,090 11,631
- 28,027
(Note) 246,811
56.00
Co., Ltd. Management consultancy,
repair, cleaning Shine (Shenzhen) Enterprise
Everand and
self-owned property
repair, cleaning 274,765 (2) - 482,230 - 482,230 2,813 80.00 ( 570) 417,532 - (Note)
related activities leasing related activities
Management consultancy,
ManagementEver Shine (Qingdao) Enterprise
consultancy, Management consultancy,
Ever (Shanghai) self-owned property 222,781 (2) - 393,103 - 393,103 1,778 80.00 ( 145) 250,770 - (Note)
Management
ShineConsulting Co., Ltd.Enterprise
self-owned
(2) property leasing
1,945,977
2,505,191 self-owned
(2) property
- - 1,945,977
2,505,191 2,505,191
(2) - 22,555 - 2,505,19180.00
2,505,191
( - 56,013)22,555 - 3,332,38480.00
2,505,191
( 56,013)
- 22,555
(Note) 3,332,384
80.00 (
leasing leasing
Management consultancy, Management consultancy,

self-owned
(2) property 192,593
277,147 self-owned
(2) property
- - 192,593
277,147 277,147
(2) ( - 1,239) - 277,14780.00 277,147
( ( - 934) 1,239) - 152,30580.00277,147
( ( 934)
- 1,239)
(Note) 152,305
80.00 (
leasing leasing

self-owned
(2) property 274,765- self-owned
482,230
(2)property - 274,765 - 482,230
(2)
482,230 2,813 - -80.00 482,230
( 482,230 570) 2,813 - 417,53280.00482,230
( 570)
- 2,813
(Note) 417,532
80.00 (
leasing leasing

Ever Shine (Qingdao) Enterprise
self-owned
(2) property 222,781- self-owned
393,103
(2) property - 222,781 - 393,103
(2)
393,103 1,778 - -80.00 393,103
( 393,103 145) 1,778 - 250,77080.00393,103
( 145)
- 1,778
(Note) 250,770
80.00 (
leasing leasing
2018 Annual Report
305
306
Accumulted amount of
Accumulated amount of Mainland China/Amount remitted Accumulated amount of Net income (loss) of Ownership held by (loss) recognised by Book value of
back to Taiwan for the year ended investment income
Investment method remittance from Taiwan to remittance from Taiwan the investee for the the Company the Company. investments in
Investee in Mainland China Main business activities Paid-in capital December 31, 2018 remitted back to Footnote
(Note 1) Mainland China as of to Mainland China as of year ended (direct of indirect) For the year ended Mainland China as of
Taiwan as of December
January 1, 2018 Remitted to Remitted back to December 31, 2018 December 31, 2018 (%) December 31, 2018 December 31, 2018
31, 2018
Mainland China Taiwan (Note 2(2)B)
Inland container
Master International Shipping
loading, discharging, $ 22,395 (2) $ - $ 84,904 $ - $ 84,904 $ 48,085 39.20 $ 1,879 $ 32,023 $ - (Note)
Agency Co., Ltd.
passenger transportation
and related activities
Investment amount Ceiling on

approved by the investments in
Accumulated amount of
Investment Mainland China

remittance from Taiwan to
Company name Commission of the imposed by the
Mainland China as of
Ministry of Investment
December 31, 2018
Economic Affairs Commission of
(MOEA) MOEA
Evergreen Marine Corp. $ 4,297,481 $ 4,864,612 $ 40,106,538
Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company, Peony Investment S.A. and Evergreen Marine (Hong Kong) Ltd., in the third area, which then invested in the investee in Mainland China.
(3) Others
Note 2: In the ‘Investment income (loss) recognised by the Company for the year ended December 31, 2018’ column:
(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B. The financial statements that are audited and attested by R.O.C. parent company’s CPA.
C. Others.
Note 3: The numbers in this table are expressed in New Taiwan Dollars.
6 Financial Information 2018 Annual Report
VI. Parent Company Only Financial Statements and Report of Independent Accountants
REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE
To the Board of Directors and Shareholders of Evergreen Marine Corporation (Taiwan) Ltd.
Opinion
We have audited the accompanying parent company only balance sheets of Evergreen Marine
Corporation (Taiwan) Ltd. (the “Company”) as of December 31, 2018 and 2017, and the related parent
company only statements of comprehensive income, of changes in equity and of cash flows for the years
then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, based on our audits and the reports of other independent accountants (please refer to
Other Matter section of our report), the accompanying financial statements present fairly, in all material
respects, the financial position of Evergreen Marine Corporation (Taiwan) Ltd. as of December 31,
2018 and 2017, and its financial performance and its cash flows for the years then ended in accordance
with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” .
Basis for opinion

We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of
Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the
Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Professional Ethics for
Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other
ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained
along with the report of other independent auditors are sufficient and appropriate to provide a basis for
our opinion.
Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole and, in forming our opinion thereon, we do not provide
a separate opinion on these matters.
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307
The key audit matters of the parent company only financial statements for the year ended December 31,
2018 are as follows:
Accuracy of freight revenue and appropriate use of cut-off
Description
Please refer to Note 4(30) for accounting policy on revenue recognition, Note 5(2) for uncertainty of
accounting estimates and assumptions applied on revenue recognition, and Note 6(20) for details of sales
revenue, Note 6(7) for details of investments accounted for using equity method, and Table 8 for
information on investees accounted for using equity method.
The Company, the Company’s directly held subsidiary, Peony Investment S.A., which is recognised in
investments accounted for using equity method, and the subsidiary, Evergreen Marine (Hong Kong) Ltd.,
which is directly and indirectly held an 80% equity interest by the Company, primarily engages in global
container shipping service covering ocean-going and near-sea shipping line, shipping agency business
as well as container freight station business. Since ocean-going shipping often lasts for several days,
voyages are sometimes completed after the balance sheet date. Also, demands for freight are consistently
sent by forwarders during voyage. Due to the factors mentioned above, freight revenue is recognized
under the percentage-of-completion method for each vessel of which the service has been provided
during the reporting period.
Despite the Company and its investee companies conducting business worldwide, its transactions are all
in small amounts, whereas the freight rate is subject to fluctuation caused by cargo loading rate as well
as market competition. Worldwide shipping agencies use a system to record the transactions by entering
data including shipping departure, destination, counterparty, transit time, shipping amounts, and freight
price for the Company. Therefore, management could recognise freight revenue in accordance with the
data on bill of lading reports generated from the system, accompanied by estimation made from past
experience and current cargo loading conditions the revenue that would flow in, and calculate the
revenue under the percentage-of-completion method. As the process of recording transactions,
communicating with agencies, and maintaining the system are done manually, and the estimation of
freight revenue is subject to management’s judgement, therefore freight revenue involves high
uncertainty and is material to the financial statements. Given the conditions as described above, we
consider the accuracy of freight revenue and the appropriate use of cut-off by the Company and its
investee companies as a key audit matter.
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2018 Annual Report
We, and the other independent accountants, performed the following audit procedures on the above key
audit matter:
1. Obtained an understanding of the operation and industry of the Company and its investee companies
to assess the reasonableness of policies and procedures on revenue recognition, and confirmed
whether it is appropriate to the financial statements.
2. Obtained an understanding of the procedures of revenue recognition from booking, picking, billing
to receiving. Assessed and tested relevant internal controls, including checking freight items and
amounts of delivery information against the approved contracts and booking list. In addition,
recalculated the accuracy of freight revenue, and ensured its consistency with the bill of lading report.
3. Obtained the estimated freight income report for vessels underway as of balance sheets date, and
inquired with management for the reasonableness of judgment. In addition, checked historical freight
revenue for total voyage under each individual vessel, along with comparing with current cargo
loading condition as well as actual revenue received after period end to ensure the reasonableness of
revenue assumptions.
4. Confirmed the completeness of vessels underway for the reporting period, including tracking the
movements of shipments on the internet to ensure the vessels that depart before period end have been
taken into consideration in the freight revenue calculation.
5. Verified accuracy of data used in calculating percentage of completion under each voyage, including
selecting samples and check whether total shipping days shown on the Company’s website are in
agreement with cruise timetable as well as recalculating shipping days (days between departure and
balance sheet date), in order to examine the soundness of percentage applied.
Impairment of property, plant and equipment
Description
Please refer to Note 4(15) for accounting policies on property, plant and equipment, Note 5(2) for
uncertainty of accounting estimates and assumptions applied on impairment of property, plant and
equipment, and Note 6(8) for details of property, plant and equipment, Note 6(7) for details of
investments accounted for using equity method, and Table 8 for information on investees accounted for
using equity method.
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The Company, the Company’s directly held subsidiary, Peony Investment S.A., which is recognised in
investments accounted for using equity method, and the subsidiary, Evergreen Marine (Hong Kong) Ltd.,
which is directly and indirectly held an 80% equity interest by the Company, primarily engages in global
container shipping service covering ocean-going and near-sea shipping line, shipping agency business
as well as container freight station business. As new ships have been built and put into operation by
many carriers around the world, market supply has exceeded demand. Therefore, the market imbalance
led to price competition, resulting to significant changes in profit for the industry and raising the risk of
impairment on ship equipment, transport equipment and and cargo handling equipment, which are
recognised in property, plant and equipment. The valuation of impairment and recoverable amounts are
evaluated by the Company using the present value of the future cash flows expected to be derived from
an asset or cash-generating unit compared to the book value. The main assumptions of discount rates
used in recoverable amounts, and expected operating revenue growth rates, gross profit, operating profit
rates, capital expenditures and discount rates used in future cash flow estimates are subject to
management’s judgement and involve high uncertainty, and the estimated results are material to the
financial statements. Given the conditions as described above exist in the Company and its investee
companies, we consider the impairment assessment of ship equipment, transport equipment and cargo
handling equipment in the property, plant and equipment under the Company and its investee companies
as a key audit matter.
We and other accountants performed the following audit procedures on the above key audit matter:
1. Obtained an understanding and assessed the relevant policies, internal controls and process applied
to valuation of asset impairments.
2. Interviewed with management regarding the impairment test report, and assessed the reasonableness
of discount rates and the reasonableness of operating revenue, gross profit, operating profit rate,
growth rates and capital expenditure that management used in estimating future cash flows by
checking actual performance under past operating plans and comparing the performance with
industry forecast to evaluate the intention and capability of management.
3. Checked the parameters of the valuation model and recalculated the valuation model for accuracy.
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2018 Annual Report
Significant transactions in investments accounted for using equity method

Description
Please refer to Note 4(14) for accounting policy on investments accounted for using equity method, Note
6(7) for details of investments accounted for under equity method, and Table 8 for information on
investees accounted for using equity method.
As of December 31, 2018, the Company owns directly and indirectly 80% equity interests in the
subsidiary, Evergreen Marine (Hong Kong) Ltd., which is recognised in investments accounted for using
equity method amounting to NT$7,218,598 thousand, constituting 5.64% of total assets, and recognised
gain on investments for the year ended December 31, 2018 amounting to NT$783,458 thousand.
In December 2018, the subsidiary, Evergreen Marine (Hong Kong) Ltd., acquired a 100% equity interest
in Hatsu Marine (Hong Kong) Limited by cash amounting to NT$3,265,341 thousand, and the fair value
of acquired identifiable net assets (including intangible assets-customer relationship) amounted to
NT$3,274,188 thousand. This business combination was a significant transaction during the financial
reporting period, the fair value of identifiable net assets were estimated based on management’s
assessment and price allocation reports prepared by the independent expert appraisers appointed by the
company mentioned above. Because the assessment and measurement of the fair value are subject to
material judgements and accounting estimations, and are significant to the financial statements, therefore,
we identified purchase price allocation a key audit matter.

We performed the following audit procedures on the above key audit matter:
1. Obtained an understanding of and assessed the purpose, internal control policies and process of
business combination.
2. Obtained an understanding of and assessed the valuation model used to estimate the fair value of
acquiree and the applied forecasting financial data, including assessing the reasonableness of
material assumptions, such as discount rate and revenue growth rates, gross margin and operating
margin used to estimate future cash flows.
3. Obtained an understanding on the allocation of purchase price and procedures, including policies
and assessment procedures on measurement and disclosure of identifiable net assets of acquiree.
Reviewed the business combination contracts and price allocation reports, and examined the
~5~
311
acquisition date, recognised considerations and the fair value of identifiable net assets in order to
ensure that the transactions were recognised correctly.
Other matter – Reports of other independent accountants

We did not audit the financial statements of all the investee companies accounted for using equity method.
Those statements were audited by other independent accountants whose reports thereon have been
furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included for those
investee companies accounted for using equity method and information disclosed in Note 13 relating to
these long-term equity investments, is based solely on the reports of the other independent accountants.
Long-term equity investments in these investee companies amounted to NT$ 21,850,693 thousand and
NT$ 20,592,791 thousand, constituting 17.08% and 17.05% of the total assets as of December 31, 2018
and 2017, respectively, and comprehensive loss (including share of profit or loss and share of other
comprehensive income of associates and joint ventures accounted for using equity method) was NT$
261,959 thousand and NT$ 1,848,434 thousand, constituting (25.52%) and 40.52% of the total
comprehensive income (loss) as of December 31, 2018 and 2017, respectively.
Responsibilities of management and those charged with governance for the parent
company only financial statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”
and for such internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company, or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance, including supervisors, are responsible for overseeing the Company’s
financial reporting process.
~6~
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2018 Annual Report
Auditor’s responsibilities for the audit of the parent company only financial statements
Our objectives are to obtain reasonable assurance about whether the parent company only financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with ROC GAAS will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these parent company only financial statements.
As part of an audit in accordance with ROC GAAS, we exercise professional judgement and maintain
professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the parent company only financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
4. Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
~7~
313
5. Evaluate the overall presentation, structure and content of the parent company only financial
statements, including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the parent company only financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Li, Hsiu-Ling
Lee, Hsiu-Ling
Chih, Ping-Chiun
For and on behalf of PricewaterhouseCoopers, Taiwan
March 22, 2019
-------------------------------------------------------------------------------------------------------------------------------------------------
The accompanying parent company only financial statements are not intended to present the financial position and results of
operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other
than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such
financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China.
Accordingly, the accompanying parent company only financial statements and report of independent accountants are not
intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in
the Republic of China, and their applications in practice.
As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for
the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
~8~
314
2018 Annual Report

PARENT COMPANY ONLY BALANCE SHEETS

Assets Notes AMOUNT % AMOUNT %
Current assets ! ! ! ! ! !
Cash and cash equivalents 6(1) %! 32-783-568! 28! %! 34-154-624! 2:!
Current contract assets 6(20) ! 793-438! .! ! .! .!
Notes receivable - net 6(4) ! 54! .! ! 83! .!
Accounts receivable - net 6(4) ! 4-369-918! 4! ! 3-972-38:! 4!
Accounts receivable, net - related parties 6(4) and 7 ! ::-734! .! ! 324-554! .!
Other receivables ! 316-341! .! ! 469-176! .!
Other receivables - related parties 7 ! 291-:48! .! ! 371-899! .!
Current income tax assets ! .! .! ! 25-291! .!
Inventories 6(5) ! :19-233! 2! ! 799-988! 2!
Prepayments ! 365-316! .! ! 336-:45! .!
Other current assets 6(6), 7 and 8 ! 3-885-172! 3! ! 3-23:-761! 3!
Current Assets ! 41-146-923! 34! ! 3:-8:6-912! 36!
Non-current assets ! ! ! ! ! !
Non-current financial assets at fair value 6(2)
through other comprehensive income ! 2-132-693! 2! ! .! .!
Available-for-sale financial assets - non- 12(4)
current ! .! .! ! 2-3:8-:3:! 2!
Held-to-maturity financial assets - non- 12(4)
current ! .! .! ! 211-111! .!
Non-current financial assets at amortised 6(3)
cost ! 211-111! .! ! .! .!
Investments accounted for using equity 6(7)
method ! 69-256-158! 56! ! 67-82:-1:8! 58!
Property, plant and equipment - net 6(8) and 8 ! 46-156-637! 38! ! 38-229-798! 33!
Investment property - net 6(9) and 8 ! 2-999-668! 3! ! 2-:18-813! 3!
Intangible assets ! 39-841! .! ! 4:-182! .!
Deferred income tax assets 6(27) ! 797-461! 2! ! 672-:96! .!
Other non-current assets 6(10) ! :87-722! 2! ! 4-365-414! 4!
Non-current assets ! :8-9:3-514! 88! ! :1-::9-885! 86!
Total assets %! 238-:39-326! 211! %! 231-8:5-686! 211!
(Continued)
~9~
315

PARENT COMPANY ONLY BALANCE SHEETS

Liabilities and Equity Notes AMOUNT % AMOUNT %
Current liabilities ! ! ! ! ! !
Current contract liabilities 6(20) %! 542-3:1! .! %! .! .!
Accounts payable ! 5-494-797! 5! ! 4-581-173! 4!
Accounts payable - related parties 7 ! 2:4-942! .! ! 235-9:6! .!
Other payables ! :39-747! 2! ! 67:-796! 2!
Other payables - related parties 7 ! 7-794! .! ! 25-:29! .!
Current income tax liabilities ! 374-795! .! ! 21-877! .!
Other current liabilities 6(11)(13) and 7 ! :-151-931! 8! ! 22-13:-:29! :!
Current Liabilities ! 26-359-741! 23! ! 26-331-355! 24!
Non-current liabilities ! ! ! ! ! !
Corporate bonds payable 6(12) ! 21-111-111! 9! ! 9-111-111! 8!
Long-term loans 6(13) ! 44-819-8:2! 37! ! 42-:62-997! 37!
Deferred income tax liabilities 6(27) ! 8:3-:82! 2! ! 869-72:! 2!
Other non-current liabilities 6(14)(15) ! 2-444-6:4! 2! ! 2-576-383! 2!
Non-current liabilities ! 56-946-466! 47! ! 53-286-888! 46!
Total Liabilities ! 72-194-:96! 59! ! 68-4:7-132! 59!
Equity ! ! ! ! ! !
Capital 6(16) ! ! ! ! ! !
Common stock ! 56-23:-849! 46! ! 51-234-671! 44!
Capital surplus 6(17) ! ! ! ! ! !

Capital surplus ! 22-16:-256! :! ! 21-949-186! :!
Retained earnings 6(18) ! ! ! ! ! !

Legal reserve ! 6-796-659! 5! ! 5-:96-142! 5!
Unappropriated retained earnings ! 4-887-754! 4! ! 7-87:-686! 7!
Other equity interest 6(19) ! ! ! ! ! !

Other equity interest ! 2-2:4-267! 2! ! 793-424! .!
Total equity ! 77-955-341! 63! ! 74-4:9-665! 63!
Significant Contingent Liabilities And 9
Unrecognised Contract Commitments ! ! ! ! ! !

Significant Events After The Balance Sheet 11
Date ! ! ! ! ! !
Total liabilities and equity %! 238-:39-326! 211! %! 231-8:5-686! 211!
The accompanying notes are an integral part of these parent company only financial statements.
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316
2018 Annual Report

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

2018 2017
Operating revenue 6(20) and 7 %! 44-::5-682! 211! %! 39-9:8-727! 211!
Operating costs 6(25)(26) and 7 )! 43-623-974*!) :7*!) ! 37-997-3:2*!) :4*!
Gross profit ! 2-592-819! 5! ! 3-122-436! 8!
Operating expenses 6(25)(26) and 7 ! ! ! ! ! !
Selling expenses )! 412-573*!) 2*!) ! 429-141*!) 2*!
General and administrative expenses )! 2-717-344*!) 5*!) ! 2-887-:53*!) 7*!
Impairment loss (impairment gain and reversal
of impairment loss) determined in accordance
with IFRS 9 )! 3:8*! .! ! .! .!
Total operating expenses )! 2-:18-::3*!) 6*!) ! 3-1:5-:83*!) 8*!
Other gains - net 6(21) and 7 ! 8-6:5! .! ! 427-425! 2!
Operating (loss) profit )! 529-7:1*!) 2*! ! 343-778! 2!
Non-operating income and expenses ! ! ! ! ! !
Other income 6(22) ! 691-895! 3! ! 5:3-471! 3!
Other gains and losses 6(23) ! 2:-592! .! ! 546-282! 2!
Finance costs 6(24) )! 796-747*!) 3*!) ! 745-7:8*!) 3*!
Share of profit of subsidiaries, associates and
joint ventures accounted for using equity
method ! 2-124-676! 4! ! 7-7:3-518! 34!
Total non-operating income and expenses ! :39-2:5! 4! ! 7-:96-352! 35!
Profit before income tax ! 61:-615! 3! ! 8-328-:19! 36!
Income tax expense 6(27) )! 326-696*!) 2*!) ! 323-848*!) 2*!
Profit for the year %! 3:4-:2:! 2! %! 8-116-282! 35!
Other comprehensive income (loss) 6(19) ! ! ! ! ! !
Components of other comprehensive income
that will not be reclassified to profit or loss ! ! ! ! ! !
Losses on remeasurements of defined benefit 6(15)
plans ) %! 58-633*! .! ) %! 92-6:9*! .!
Unrealised gains on valuation of investments in
equity instruments measured at fair value
through other comprehensive income ! 78-349! .! ! .! .!
Share of other comprehensive loss of
associates and joint ventures accounted for
using equity method, components of other
comprehensive income that will not be
reclassified to profit or loss )! 51:-166*!) 2*!) ! 278-981*!) 2*!
Income tax related to components of other
comprehensive income that will not be
reclassified to profit or loss ! 22-:55! .! ! 24-983! .!
Components of other comprehensive loss
that will not be reclassified to profit or loss )! 488-4:6*!) 2*!) ! 346-6:7*!) 2*!
Components of other comprehensive income
that will be reclassified to profit or loss ! ! ! ! ! !
Other comprehensive income (loss), before tax,
exchange differences on translation ! 2-115-51:! 4! ) ! 3-157-181*!) 8*!
Unrealised loss on available-for-sale financial 12(4)
assets ! .! .! ) ! :3-632*! .!
Share of other comprehensive income (loss) of
associates and joint ventures accounted for
using equity method, components of other
comprehensive income that will be reclassified
to profit or loss ! 215-862! .! ) ! 82-629*! .!
Income tax relating to the components of other
comprehensive income ! 857! .! ! 3-645! .!
income (loss) that will be reclassified to
profit or loss ! 2-21:-:17! 4! ) ! 3-318-686*!) 8*!
Other comprehensive income (loss) for the year %! 843-622! 3! ) %! 3-554-282*!) 9*!
Total comprehensive income for the year %! 2-137-541! 4! %! 5-673-111! 27!
! ! ! !
Basic earnings per share (in dollars) 6(28) ! ! ! !
Basic earnings per share %! 1/18! %! 2/99!
Diluted earnings per share %! 1/18! %! 2/99!
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318
COMPANY ONLY
PARENTEVERGREEN STATEMENTS OF CHANGES IN EQUITY
MARINE CORPORATION (TAIWAN) LTD.
FOR THE YEARS
PARENT COMPANY ENDED
ONLY DECEMBER
STATEMENTS OF31, 2018 AND
CHANGES IN 2017
EQUITY
(Expressed in thousands
FOR THE YEARS of New
ENDED Taiwan dollars, except
DECEMBER as otherwise
31, 2018 AND 2017indicated)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
Retained earnings Unrealised gains Other equity interest
Unrealised from
(losses)gains
Exchange financial
(losses) fromassets
differences measured
Exchange on financial at fair
assets Hedging
(Accumulated differences on
translating the measured at fair
value through Unrealized gain or Hedginginstrument gain
(Accumulated
deficit) translating the
financial value through
other Unrealized
loss on gain or instrument
available- (loss) ongain
effective Gains (losses) on
deficit)
unappropriated statements
financial of other
comprehensive on available-
lossfor-sale financial(loss) on effective
hedge of cashGains (losses) on
hedging
Notes Common stock Capital surplus Legal reserve unappropriated
retained statements
earnings foreign of
operations comprehensive
income for-sale financial
assets of cash
hedgeflow hedges hedging
instruments Total equity
Notes Common stock Capital surplus Legal reserve retained earnings foreign operations income assets flow hedges instruments Total equity
Year 2017
BalanceYear
at January
2017 1, 2017 %!46-234-671 %! 8-:9:-125 %! :-344-353 )%! 5-359-322 * %! 2-365-733 %! . %! 2-814-272 )%! 78-9:6 * %! . %!61-:98-5:4
Balance at January 1, 2017 %!46-234-671 %! 8-:9:-125 %! :-344-353 )%! 5-359-322 * %! 2-365-733 %! . %! 2-814-272 )%! 78-9:6 * %! . %!61-:98-5:4
Profit for the year . . . 8-116-282 . . . . . 8-116-282
Profit for the year . . . 8-116-282 . . . . . 8-116-282
Other comprehensive income (loss) for the year 6(18)(19) . . . ) 346-6:7 * ) 3-49:-847 * . 241-289 62-:94 . ) 3-554-282 *
Other comprehensive income (loss) for the year 6(18)(19) . . . ) 346-6:7 * ) 3-49:-847 * . 241-289 62-:94 . ) 3-554-282 *
Total comprehensive income (loss) . . . 7-87:-686 ) 3-49:-847 * . 241-289 62-:94 . 5-673-111
Total comprehensive income (loss) . . . 7-87:-686 ) 3-49:-847 * . 241-289 62-:94 . 5-673-111
Distribution of 2016 earnings
Distribution of 2016 earnings 6(18)6(18)
Legal reserve
Legal reserve
used tousedoffset accumulated
to offset deficit
accumulated deficit . . .. )) 5-359-322
5-359-322 ** 5-359-322
5-359-322 .. . . . . . . . . . .
Issuance of common stock 6(16)(17)
6(16)(17) 6-111-111
6-111-111 3-822-333
3-822-333 .. .. .. . . . . . . . . 8-822-333
8-822-333
Cash capital increase
Cash capital reserved
increase for employee
reserved preemption
for employee 6(17)
preemption 6(17) . . 87-391
87-391 .. .. .. . . . . . . . . 87-39187-391
Adjustments to share of changes in equity
Adjustments to share of changes in equity of of 6(17)6(17)
subsidiaries, associates
subsidiaries, and joint
associates and ventures
joint ventures . . 72-66:
72-66: .. .. .. . . . . . . . . 72-66:72-66:
at December
BalanceBalance 31, 2017
at December 31, 2017 %!51-234-671
%!51-234-671 %!21-949-186
%!21-949-186 %!
%! 5-:96-142
5-:96-142 7-87:-686
%! 7-87:-686 )%!
)%!2-246-225
2-246-225* * %!%! . . %! %!
2-944-44: 26-:23
2-944-44: )%! )%! 26-:23 * %!* %! . %!74-4:9-665
.%!74-4:9-665
Year 2018
Year 2018
BalanceBalance at January
at January 1, 2018 1, 2018 %!51-234-671
%!51-234-671 %!21-949-186
%!21-949-186 %! 5-:96-142
%! 5-:96-142 %! 7-87:-686
7-87:-686 )%!
)%!2-246-225
2-246-225* * %!%! . . 2-944-44:
%! %! 2-944-44: )%! )%! 26-:23 * %!
26-:23 * %! . .%!74-4:9-665
%!74-4:9-665
Retrospective
Retrospective application
application 3(1),3(1), 6(18)(19)
6(18)(19)
and and 12(4)
12(4) . . .. . 387-792
387-792 .. 2-664-773
2-664-773 ) ) 2-944-44:
2-944-44:
* * 26-:23
26-:23) ) 26-:23 * )
26-:23 *
* ) 3-::7 3-::7 *
BalanceBalance at 1 January
at 1 January after adjustments
after adjustments 51-234-671
51-234-671 21-949-186
21-949-186 5-:96-142
5-:96-142 8-157-367
8-157-367 )) 2-246-225
2-246-225* * 2-664-773
2-664-773 . . . .) ) 26-:23 *
26-:23 *74-4:6-669
74-4:6-669
Profit
Profit for thefor the year
year . . .. .. 3:4-:2:
3:4-:2: .. . . . . . . . . 3:4-:2:
3:4-:2:
Other comprehensive
Other comprehensive income income
(loss)(loss)
for the the year
foryear 6(18)(19)
6(18)(19) . . .. .. )) 82-452
82-452** 2-263-7:5
2-263-7:5 ) ) 417-216
417-216
* * . . . .) ) 53-848 *
53-848 * 843-622 843-622
Total comprehensive
Total comprehensive income income
(loss)(loss) . . .. .. 333-689
333-689 2-263-7:5
2-263-7:5 ) ) 417-216
417-216
* * . . . .) ) 53-848 *
53-848 * 2-137-541
2-137-541
Distribution
Distribution of 2017 2017 earnings
of earnings 6(16)(18)
6(16)(18)
Legal capital reserve . . 811-628 ) 811-628 * . . . . . .
Legal capital reserve . . 811-628 ) 811-628 * . . . . . .
Stock dividends 3-117-289 . . ) 3-117-289 * . . . . . .
Stock dividends 3-117-289 . . ) 3-117-289 * . . . . . .
Cash dividends . . . ) 913-582 * . . . . . ) 913-582 *
Cash dividends . . . ) 913-582 * . . . . . ) 913-582 *
Issuance of common stock 6(16)(17) 4-111-111 337-9:1 . . . . . . . 4-337-9:1
Issuance of common
stock reserved for employee preemption 6(16)(17)
6(17) 4-111-111 . 337-9:1
28-721 .. .. .. . . . . . . . . 4-337-9:1
28-721
Adjustments to reserved for employee
share of changes preemption
in equity of 6(17)6(17)(18) . 28-721 . . . . . . . 28-721
subsidiaries, associates and joint ventures of 6(17)(18) . ) 34-541 * . 4-754 . . . . . ) 2:-898 *
subsidiaries, associates and joint ventures
Disposal of investments in equity instruments 6(2)(18) . ) 34-541 * . 4-754 . . . . . ) 2:-898 *
Disposaldesignated at fair value
of investments through
in equity instruments
other comprehensive6(2)(18)
income
designated at fair value through other comprehensive . . . 24-443 . ) 24-443 * . . . .
incomeBalance at December 31, 2018 .
%!56-23:-849 .
%!22-16:-256 .
%! 6-796-659 24-443
%! 4-887-754 %! 28-691 . %!
) 2-345-336
24-443 * %! . . %! . .)%! 69-75: * .%!77-955-341 .
Balance at December 31, 2018 %!56-23:-849 %!22-16:-256 %! 6-796-659 %! 4-887-754 %! 28-691 %! 2-345-336 %! . %! . )%! 69-75: * %!77-955-341
of these parent company only financial statements.
The accompanying notes are an integral part~12~
~12~
2018 Annual Report

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

Notes 2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax % 61:-615 % 8-328-:19
Adjustments
Adjustments to reconcile profit (loss)
Depreciation 6(23)(25) 3-163-217 2-882-894
Amortization 6(25) 31-683 2:-6:2
Bad debt expense 3:8 .
Interest expense 6(24) 796-747 745-7:8
Interest income 6(22) ) 36:-295 * ) 351-133 *
Dividend income 6(22) ) 69-671 * ) 57-:76 *
Gain on disposal of available-for-sale financial assets . ) 634-222 *
Loss on disposal of other long-term investments 6(23) . 423
Share of profit of subsidiaries, associates and joint
ventures accounted for using equity method ) 2-124-676 * ) 7-7:3-518 *
Gain from bargain purchase 6(22) . ) 2-645 *
Net gain on disposal of property, plant and equipment 6(21) ) 8-6:5 * ) 427-425 *
Realized income with affliated companies . ) 8-555 *
Cash capital increase reserved for employee 6(17)
preemption 28-721 87-391
Changes in operating assets and liabilities
Changes in operating assets
Current contract assets ) 414-294 * .
Notes receivable 3: ) 54 *
Accounts receivable ) 882-547 * ) 856-494 *
Accounts receivable - related parties 224-8:8 ) 9:-657 *
Other receivables 257-527 439-339
Other receivables - related parties 8:-962 ) 64-432 *
Inventories ) 32:-356 * ) 398-8:5 *
Prepayments ) 39-382 * ) 43-:62 *
Other current assets ) 755-522 * ) 89-952 *
Other non-current assets ) 957 * 6-343
Changes in operating liabilities
Current contract liabilities ) 32-:29 * .
Accounts payable :24-735 :74-428
Accounts payable - related parties 79-:47 :2:
Other payables 493-686 223-81:
Other payables - related parties ) 9-346 * 9-249
Other current liabilities ) 284-696 * 9:5-672
Other non-current liabilities ) 28:-627 * ) 217-156 *
Cash inflow generated from operations 2-412-515 3-922-:65
Interest received 36:-295 351-133
Interest paid ) 812-527 * ) 757-373 *
Income tax refund received . 271-36:
Income tax paid ) 23-248 * .
Net cash flows from operating activities 958-146 3-676-:84
(Continued)
~13~
319

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

Notes 2018 2017

Proceeds from disposal of financial assets at fair value 6(2)
through other comprehensive income % 453-772 % .
Proceeds from capital reduction of financial assets at fair
value through other comprehensive income :35 .
Proceeds from disposal of available-for-sale financial
assets . :26-271
Proceeds from sale of held-to-maturity financial assets . 281-111
Acquisition of held-to-maturity financial assets . ) 61-111 *
Acquisition of investments accounted for using equity 6(7)
method ) 97-9:5 * ) 7-499-366 *
Acquisition of property, plant and equipment 6(29) ) 2-529-536 * ) 2-162-7:5 *
Proceeds from disposal of property, plant and equipment 2-371 436-252
Acquisition of intangible assets ) 21-342 * ) 7-56: *
Increase in other non-current assets 6(29) ) 7-387-177 * ) 3-513-522 *
Cash dividends received 517-667 4:1-211
Net cash flows used in investing activities ) 8-151-326 * ) 9-1:9-529 *
Increase in short-term loans . 711-111
Decrease in short-term loans . ) 711-111 *
Increase in long-term loans 6(30) 27-176-731 3-275-413
Decrease in long-term loans 6(30) ) 26-779-342 * ) 7-:64-886 *
Increase in corporate bonds payable 3-111-111 9-111-111
Decrease in corporate bonds payable . ) 4-111-111 *
Proceeds from issuance of common stock 6(16) 4-337-9:1 8-822-333
Increase in guarantee deposits received 427 .
Cash dividends paid ) 913-582 * .
Net cash flows from financing activities 5-933-235 8-:32-85:
Net (decrease) increase in cash and cash equivalents ) 2-482-167 * 3-49:-415
Cash and cash equivalents at beginning of year 34-154-624 31-765-31:
Cash and cash equivalents at end of year % 32-783-568 % 34-154-624
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320
2018 Annual Report

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(Expressed in thousands of New Taiwan Dollars, except as otherwise indicated)
1. HISTORY AND ORGANISATION

Evergreen Marine Corporation (Taiwan) Ltd. (the “Company”) was established in the Republic of China,
is mainly engaged in domestic and international marine transportation, shipping agency services, and the
distribution of containers. The Company was approved by the Securities and Futures Bureau (SFB),
Financial Supervisory Commission, Executive Yuan, R.O.C. to be a public company on November 2,
1982 and was further approved by the SFB to be a listed company on July 6, 1987. The Company’s
shares have been publicly traded on the Taiwan Stock Exchange since September 21, 1987.
2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY
FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION
These parent company only financial statements were authorised for issuance by the Board of Directors
on March 22, 2019.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting
Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)
follows:
Effective date by
Amendments to IFRS 2, ‘Classification and measurement of share-based January 1, 2018
payment transactions’
Amendments to IFRS 4, ‘Applying IFRS 9 Financial instruments with January 1, 2018
IFRS 4, Insurance contracts’
IFRS 9, ‘Financial instruments’ January 1, 2018
IFRS 15, ‘Revenue from contracts with customers’ January 1, 2018
Amendments to IFRS 15, ‘Clarifications to IFRS 15 Revenue from January 1, 2018
contracts with customers’
Amendments to IAS 7, ‘Disclosure initiative’ January 1, 2017
Amendments to IAS 12, ‘Recognition of deferred tax assets for January 1, 2017
unrealised losses’
Amendments to IAS 40, ‘Transfers of investment property’ January 1, 2018
IFRIC 22, ‘Foreign currency transactions and advance consideration’ January 1, 2018
Annual improvements to IFRSs 2014-2016 cycle - Amendments to IFRS January 1, 2018
1, ‘First-time adoption of International Financial Reporting Standards’
Annual improvements to IFRSs 2014-2016 cycle - Amendments to IFRS January 1, 2017
12, ‘Disclosure of interests in other entities’
~15~
321
Effective date by
Annual improvements to IFRSs 2014-2016 cycle - Amendments to IAS January 1, 2018
28, ‘Investments in associates and joint ventures’
Company’s financial condition and financial performance based on the Company’s assessment. The
quantitative impact will be disclosed when the assessment is complete.
A. IFRS 9, ‘Financial instruments’
(a) Classification of debt instruments is driven by the entity’s business model and the contractual
cash flow characteristics of the financial assets, which would be classified as financial asset at
fair value through profit or loss, financial asset measured at fair value through other
comprehensive income or financial asset measured at amortised cost. Equity instruments
would be classified as financial asset at fair value through profit or loss, unless an entity makes
an irrevocable election at inception to present subsequent changes in the fair value of an
investment in an equity instrument that is not held for trading in other comprehensive income.
(b) The impairment losses of debt instruments are assessed using an ‘expected credit loss’
approach. An entity assesses at each balance sheet date whether there has been a significant
increase in credit risk on that instrument since initial recognition to recognise 12-month
expected credit losses or lifetime expected credit losses (interest revenue would be calculated
on the gross carrying amount of the asset before impairment losses occurred); or if the
instrument that has objective evidence of impairment, interest revenue after the impairment
would be calculated on the book value of net carrying amount (i.e. net of credit allowance).
(c) The amended general hedge accounting requirements align hedge accounting more closely
with an entity’s risk management strategy. Risk components of non-financial items and a group
of items can be designated as hedged items. The standard relaxes the requirements for hedge
effectiveness, removing the 80-125% bright line, and introduces the concept of ‘rebalancing’;
while its risk management objective remains unchanged, an entity shall rebalance the hedged
item or the hedging instrument for the purpose of maintaining the hedge ratio.
(d) The Company has elected not to restate prior period financial statements using the modified
retrospective approach under IFRS 9. The significant effects of adopting the modified
transition as of January 1, 2018 are summarised below:
i. In accordance with IFRS 9, the Company expects to reclassify available-for-sale financial
assets in the amount of $1,297,929 by increasing financial assets at fair value through other
comprehensive income in the amount of $1,297,929. Additionally, the Company increased
retained earnings by $281,074, decreased investments accounted for using equity method by
$1,397 and decreased other equity interest by $279,677.
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2018 Annual Report
ii. In accordance with IFRS 9, the Company expects to reclassify held-to-maturity financial
assets of $100,000 by increasing financial assets at amortised cost in the amount of $100,000.
iii.In line with the regulations under IFRS 9 on provision for impairment, the Company
increased deferred income tax assets by $182, and decreased current contract assets by $114,
accounts receivable, net by $744, accounts receivable, net - related parties by $52,
investments accounted for using equity method by $3,665 and retained earnings by $4,393.
iv. Please refer to Note 12(4) for disclosure in relation to the first time application of IFRS 9.
B. IFRS 15, ‘Revenue from contracts with customers’ and amendments
(a) IFRS 15, ‘Revenue from contracts with customers’ replaces IAS 11, ‘Construction contracts’,
IAS 18, ‘Revenue’ and relevant interpretations. According to IFRS 15, revenue is recognised
when a customer obtains control of promised goods or services. A customer obtains control of
goods or services when a customer has the ability to direct the use of, and obtain substantially
all of the remaining benefits from, the asset.
The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. An entity recognises
revenue in accordance with that core principle by applying the following steps:
Step 1: Identify contracts with customer.
Step 2: Identify separate performance obligations in the contract(s).
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price.
Step 5: Recognise revenue when the performance obligation is satisfied.
Further, IFRS 15 includes a set of comprehensive disclosure requirements that requires an
entity to disclose sufficient information to enable users of financial statements to understand
the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts
with customers.
(b) The Company has elected not to restate prior period financial statements and recognised the
cumulative effect of initial application as retained earnings at January 1, 2018, using the
modified retrospective approach under IFRS 15. The Company applied retrospectively IFRS
15 only to incomplete contracts as of January 1, 2018, by adopting an optional transition
expedient. The significant effects of adopting the modified transition as of January 1, 2018 are
summarised below:
Presentation of assets and liabilities in relation to contracts with customers
In line with IFRS 15 requirements, the Company changed the presentation of certain accounts
in the balance sheet as follows:
i. Under IFRS 15, contracts whereby services have been rendered but not yet billed are
recognised as contract assets, but were previously presented as part of accounts receivable
in the balance sheet. As of January 1, 2018, the balance amounted to $379,235(including
contract assets and allowance for bad debts amounting to $379,349 and $114, respectively).
~17~
323
ii. Under IFRS 15, liabilities in relation to contracts are recognised as contract liabilities, but
were previously presented as advance sales receipts in the balance sheet. As of January 1,
2018, the balance amounted to $453,207.
iii. Please refer to Note 12(5) for other disclosures in relation to the first time application of
IFRS 15.
C. Amendments to IAS 7, ‘Disclosure initiative’
This amendment requires that an entity shall provide more disclosures related to changes in
liabilities arising from financing activities, including both changes arising from cash flows and
non-cash changes.
The Company expects to provide additional disclosures to explain the changes in liabilities arising
from financing activities.
(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by
the Company
follows:
Effective date by
Amendments to IFRS 9, ‘Prepayment features with negative January 1, 2019
compensation’
IFRS 16, ‘Leases’ January 1, 2019
Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ January 1, 2019
Amendments to IAS 28, ‘Long-term interests in associates and joint January 1, 2019
ventures’
IFRIC 23, ‘Uncertainty over income tax treatments’ January 1, 2019
Annual improvements to IFRSs 2015-2017 cycle January 1, 2019
Company’s financial condition and financial performance based on the Company’s assessment.
A. IFRS 16, ‘Leases’
IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard
requires lessees to recognise a 'right-of-use asset' and a lease liability (except for those leases with
terms of 12 months or less and leases of low-value assets). The accounting stays the same for
lessors, which is to classify their leases as either finance leases or operating leases and account for
those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided
by lessors.
The Company expects to recognise the lease contract of lessees in line with IFRS 16. However,
the Company does not intend to restate the financial statements of prior period (collectively
referred herein as the “modified retrospective approach”). On January 1, 2019, it is expected that
‘right-of-use asset’ and lease liability will be increased by $14,756,183 and $14,756,183,
respectively.
~18~
324
2018 Annual Report
B. Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’

When a change to a plan take place the amendments require a company to use the updated
assumptions from this remeasurement to determine current service cost and net interest for the
remainder of the reporting period after the change to the plan.
C. Annual improvements to IFRSs 2015-2017 cycle
(a) Amendments to IFRS 3, ‘Business combinations’
The amendments clarified that obtaining control of a business that is a joint operation is a
business combination achieved in stages. The acquirer should remeasure its previously held
interest in the joint operation at fair value at of the acquisition date.
(b) Amendments to IAS 12, ‘Income taxes’
The amendment clarified that the income tax consequences of dividends on financial
instruments classified as equity should be recognised according to where the past transactions
or events that generated distributable profits were recognised. These requirements apply to all
income tax consequences of dividends.
(c) Amendments to IAS 23, ‘Borrowing costs’
The amendments clarified that if a specific borrowing remains outstanding after the related
qualifying asset is ready for its intended use or sale, it becomes part of general borrowings.
(3) IFRSs issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as
endorsed by the FSC are as follows:
Effective date by
Amendment to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of January 1, 2020
Material’
Amendments to IFRS 3, ‘Definition of a business’ January 1, 2020
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by
between an investor and its associate or joint venture’ International Accounting
Standards Board
IFRS 17, ‘Insurance contracts’ January 1, 2021
Company’s financial condition and financial performance based on the Company’s assessment.
A. Amendment to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of Material’
The amendments clarify the definition of material that information is material if omitting,
misstating or obscuring it could reasonably be expected to influence the decisions that the primary
users of general purpose financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity.
~19~
325
B. Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its
associate or joint venture’
The amendments resolve a current inconsistency between IFRS 10 and IAS 28. The gain or loss
resulting from a transaction that involves sales or contribution of assets between an investor and
its associates or joint ventures is recognised either in full or partially depending on the nature of
the assets sold or contributed:
(a) If sales or contributions of assets constitute a ‘business’, the full gain or loss is recognized;
(b) If sales or contributions of assets do not constitute a ‘business’, the partial gain or loss is
recognised only to the extent of unrelated investors’ interests in the associate or joint venture.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these parent company only financial
statements are set out below. These policies have been consistently applied to all the periods presented,
unless otherwise stated.
(1) Compliance statement
These parent company only financial statements have been prepared in accordance with the
“Regulations Governing the Preparation of Financial Reports by Securities Issuers”.
(2) Basis of preparation
A.Except for the following items, these parent company only financial statements have been prepared
under the historical cost convention:
(a)Financial assets and financial liabilities (including derivative instruments) at fair value through
profit or loss.
(b)Financial assets at fair value through other comprehensive income /Available-for-sale financial
assets measured at fair value.
(c)Defined benefit liabilities recognised based on the net amount of pension fund assets less
present value of defined benefit obligation.
B.The preparation of financial statements in conformity with International Financial Reporting
Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as
endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of
applying the Company’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the parent company only
financial statements are disclosed in Note 5.
C.In adopting IFRS 9 and IFRS 15 effective January 1, 2018, the Company has elected to apply
modified retrospective approach whereby the cumulative impact of the adoption was recognised
as retained earnings or other equity as of January 1, 2018 and the financial statements for the year
ended December 31, 2017 were not restated. The financial statements for the year ended December
31, 2017 were prepared in compliance with International Accounting Standard 39 (‘IAS 39’),
International Accounting Standard 11 (‘IAS 11’), International Accounting Standard 18 (‘IAS 18’)
and related financial reporting interpretations. Please refer to Notes 12(4) and (5) for details of
significant accounting policies and details of significant accounts.
~20~
326
2018 Annual Report
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operations.
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operations.
~21~
~21~
~21~
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327
(c)When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange
differences that were recorded in other comprehensive income are proportionately transferred
to the non-controlling interest in this foreign operation. In addition, even when the Company
retains partial interest in the former foreign subsidiary after losing control of the former foreign
subsidiary, such transactions should be accounted for as disposal of all interest in the foreign
operation.
(4) Classification of current and non-current items
A.Assets that meet one of the following criteria are classified as current assets; otherwise they are
classified as non-current assets:
(a) Assets arising from operating activities that are expected to be realised, or are intended to be
sold or consumed within the normal operating cycle;
(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realised within twelve months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to
be exchanged or used to settle liabilities more than twelve months after the balance sheet date.
B.Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they
are classified as non-current liabilities:
(a) Liabilities that are expected to be settled within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within twelve months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve
months after the balance sheet date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity instruments do not affect its
classification.
(5) Cash equivalents
Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits with
original maturities of one year or less that meet the definition above and are held for the purpose of
meeting short-term cash commitments in operations are classified as cash equivalents.
(6) Financial assets at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets that are not measured at
amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are
recognised and derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value and recognises the
transaction costs in profit or loss. The Company subsequently measures the financial assets at fair
value, and recognises the gain or loss in profit or loss.
D. The Company recognises the dividend income when the right to receive payment is established,
future economic benefits associated with the dividend will flow to the Company and the amount
of the dividend can be measured reliably.
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2018 Annual Report

A. Financial assets at fair value through other comprehensive income comprise equity securities
which are not held for trading, and for which the Company has made an irrevocable election at
initial recognition to recognise changes in fair value in other comprehensive income and debt
instruments which meet all of the following criteria:
(a) The objective of the Company’s business model is achieved both by collecting contractual cash
flows and selling financial assets; and
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive
income are recognised and derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction
costs. The Company subsequently measures the financial assets at fair value:
(a) The changes in fair value of equity investments that were recognised in other comprehensive
income are reclassified to retained earnings and are not reclassified to profit or loss following
the derecognition of the investment. Dividends are recognised as revenue when the right to
receive payment is established, future economic benefits associated with the dividend will
flow to the Company and the amount of the dividend can be measured reliably.
(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign
exchange which are recognised in profit or loss, the changes in fair value of debt instruments
are taken through other comprehensive income. When the financial asset is derecognised, the
cumulative gain or loss previously recognised in other comprehensive income is reclassified
from equity to profit or loss.
(8) Financial assets at amortised cost
A. Financial assets at amortised cost are those that meet all of the following criteria:
(a) The objective of the Company’s business model is achieved by collecting contractual cash
flows.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and
derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction
costs. Interest income from these financial assets is included in finance income using the effective
interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or
impaired.
(9) Notes, accounts and other receivables
A. Notes and accounts receivable entitle the Company a legal right to receive consideration in
exchange for transferred goods or rendered services. Receivables arising from transactions other
than the sale of goods or services are classified as other receivables.
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329
B. The Company initially measures accounts and notes receivable at fair value and subsequently
recognises the amortised interest income over the period of circulation using the effective interest
method and the impairment loss. A gain or loss is recognised in profit or loss.
(10) Impairment of financial assets
For debt instruments measured at fair value through other comprehensive income and financial
assets at amortised cost including accounts receivable or contract assets that have a significant
financing component, at each reporting date, the Company recognises the impairment provision for
12 months expected credit losses if there has not been a significant increase in credit risk since initial
recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if
such credit risk has increased since initial recognition after taking into consideration all reasonable
and verifiable information that includes forecasts. On the other hand, for accounts receivable or
contract assets that do not contain a significant financing component, the Company recognises the
impairment provision for lifetime ECLs.
(11) Derecognition of financial assets
The Company derecognises a financial asset when one of the following conditions is met:
A. The contractual rights to receive cash flows from the financial asset expire.
B. The contractual rights to receive cash flows from the financial asset have been transferred and
the Company has transferred substantially all risks and rewards of ownership of the financial
asset.
C. The contractual rights to receive cash flows from the financial asset have been transferred;
however, the Company has not retained control of the financial asset.
(12) Operating leases (lessor)
Lease income from an operating lease (net of any incentives given to the lessee) is recognised in
profit or loss on a straight-line basis over the lease term.
(13) Inventories
Inventories refer to fuel inventories and steel inventories. Fuel inventories are physically measured
by the crew of each ship and reported back to the Head Office through telegraph for recording
purposes at balance sheet date. Valuation of inventories is based on the exchange rate prevailing at
balance sheet date.
(14) Investments accounted for using equity method / subsidiaries and associates
A. Subsidiary is an entity where the Company has the right to dominate its finance and operation
policies (includes special purpose entity), normally the Company owns more than 50 percent of
the voting rights directly or indirectly in that entity. Subsidiaries are accounted for under the
equity method in the Company's parent company only financial statements.
B. Unrealized gains or losses resulted from inter-company transactions with subsidiaries are
eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be
consistent with the accounting policies of the Company.
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2018 Annual Report
C. After acquisition of subsidiaries, the Company recognizes proportionately for the share of profit
and loss and other comprehensive incomes in the income statement as part of the Company's
profit and loss and other comprehensive income, respectively. When the share of loss from a
subsidiary exceeds the carrying amount of Company's interests in that subsidiary, the Company
continues to recognize its shares in the subsidiary's loss proportionately.
D. Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received shall be
recognized directly in equity and attributed to the owners of the parent.
E. If the Company loses control of a subsidiary, the Company recognizes any investment retained
in the former subsidiary at its fair value at the date when control is lost and recognizes any
resulting difference as a gain or loss in profit or loss. The Company shall account for all amounts
recognized in other comprehensive income in relation to that subsidiary on the same basis as
would be required if the Company had directly disposed of the related assets or liabilities.
Therefore, if a gain or loss previously recognized in other comprehensive income would be
reclassified to profit or loss on the disposal of the related assets or liabilities, the Company
reclassifies the gain or loss from equity to profit or loss when it loses control of the subsidiary.
F. Associates are all entities over which the Company has significant influence but not control. In
general, it is presumed that the investor has significant influence, if an investor holds, directly or
indirectly 20 percent or more of the voting power of the investee. Investments in associates are
accounted for using the equity method and are initially recognised at cost.
G. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit
or loss, and its share of post-acquisition movements in other comprehensive income is recognised
in other comprehensive income. When the Company’s share of losses in an associate equals or
exceeds its interest in the associate, including any other unsecured receivables, the Company
does not recognise further losses, unless it has incurred constructive obligations or made
payments on behalf of the associate.
H. When changes in an associate’s equity do not arise from profit or loss or other comprehensive
income of the associate and such changes do not affect the Company’s ownership percentage of
the associate, the Company recognises in ‘capital surplus’ in proportion to its ownership.
I. Unrealised gains or loss on transactions between the Company and its associates are eliminated
to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of associates have been adjusted where necessary to ensure consistency with the policies
adopted by the Company.
J. In the case that an associate issues new shares and the Company does not subscribe or acquire
new shares proportionately, which results in a change in the Company’s ownership percentage
of the associate but maintains significant influence on the associate, then ‘capital surplus’ and
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331
‘investments accounted for under the equity method’ shall be adjusted for the increase or
decrease of its share of equity interest. If the above condition causes a decrease in the Company’s
ownership percentage of the associate, in addition to the above adjustment, the amounts
previously recognised in other comprehensive income in relation to the associate are reclassified
to profit or loss proportionately on the same basis as would be required if the relevant assets or
liabilities were disposed of.
K. Upon loss of significant influence over an associate, the Company remeasures any investment
retained in the former associate at its fair value. Any difference between fair value and carrying
amount is recognised in profit or loss.
L. When the Company disposes its investment in an associate and loses significant influence over
this associate, the amounts previously recognised in other comprehensive income in relation to
the associate, are reclassified to profit or loss, on the same basis as would be required if the
relevant assets or liabilities were disposed of. If it retains significant influence over this associate,
the amounts previously recognised in other comprehensive income in relation to the associate
are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
M. When the Company disposes its investment in an associate and loses significant influence over
this associate, the amounts previously recognised as capital surplus in relation to the associate
are transferred to profit or loss. If it retains significant influence over this associate, the amounts
previously recognised as capital surplus in relation to the associate are transferred to profit or
loss proportionately.
N. According to “Rules Governing the Preparations of Financial Statements by Securities Issuers”,
'profit for the year' and 'other comprehensive income for the year' reported in an entity's parent
company only statement of comprehensive income, shall equal to 'profit for the year' and 'other
comprehensive income' attributable to owners of the parent reported in that entity's consolidated
statement of comprehensive income. Total equity reported in an entity's parent company only
financial statements, shall be equal to the equity attributable to owners of parent reported in that
entity's consolidated financial statements.
(15) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the
construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured reliably. The carrying amount of
the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss
during the financial period in which they are incurred.
C. Land is not depreciated. Other property, plant and equipment apply cost model and are
depreciated using the straight-line method to allocate their cost over their estimated useful lives.
Each part of an item of property, plant, and equipment with a cost that is significant in relation
to the total cost of the item must be depreciated separately.
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2018 Annual Report
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each financial year-end. If expectations for the assets’ residual values and useful
lives differ from previous estimates or the patterns of consumption of the assets’ future economic
benefits embodied in the assets have changed significantly, any change is accounted for as a
change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and
Errors’, from the date of the change. The estimated useful lives of property, plant and equipment
are as follows:
Buildings ! 1 50 ~ 55 years
Loading and unloading equipment ! 6 ~ 20 years
Ships ! ! 18 ~ 25 years
Transportation equipment 6 ~ 10 years
Other equipment 3 ~ 5 years
(16) Leased assets/ operating leases (lessee)
A. Based on the terms of a lease contract, a lease is classified as a finance lease if the Company
assumes substantially all the risks and rewards incidental to ownership of the leased asset.
(a)A finance lease is recognised as an asset and a liability at the lease’s commencement at the
lower of the fair value of the leased asset or the present value of the minimum lease payments.
(b)The minimum lease payments are apportioned between the finance charges and the reduction
of the outstanding liability. The finance charges are allocated to each period over the lease
term so as to produce a constant periodic rate of interest on the remaining balance of the
liability.
(c)Property, plant and equipment held under finance leases are depreciated over their estimated
useful lives. If there is no reasonable certainty that the Company will obtain ownership at the
end of the lease, the asset shall be depreciated over the shorter of the lease term and its useful
life.
B. Payments made under an operating lease (net of any incentives received from the lessor) are
recognised in profit or loss on a straight-line basis over the lease term.
C. The accounting treatment of sale and leaseback transactions depends on the substance of the
transaction. If sale and finance leaseback is in substance a financing transaction, the difference
between the sales proceeds and the carrying value of the asset is deferred and amortised to the
income statement over the lease term. If the sale price is below the fair value, the difference
between sale price and carrying amount should be recognised immediately except that, if a loss
arising is compensated by future rent at below market price, it should be deferred and amortised
in proportion to the rent payments over the period for which the asset is expected to be used. If
the sale price is above the fair value, the excess of proceeds over fair value should be deferred
and amortised over the period for which the asset is expected to be used.
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333

An investment property is stated initially at its cost and measured subsequently using the cost model.
Except for land, investment property is depreciated on a straight-line basis over its estimated useful
life of 50 ~ 60 years.
(18) Intangible assets
Computer software is stated at cost and amortised on a straight-line basis over its estimated useful
life of 3 years.
(19) Impairment of non-financial assets
The Company assesses at each balance sheet date the recoverable amounts of those assets where
there is an indication that they are impaired. An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons
for recognizing impairment loss for an asset in prior years no longer exist or diminish, the
impairment loss is reversed. The increased carrying amount due to reversal should not be more than
what the depreciated or amortised historical cost would have been if the impairment had not been
recognised.
(20) Borrowings
A. Borrowings comprise long-term and short-term bank borrowings and other long-term and short-
term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net
of transaction costs) and the redemption value is recognised in profit or loss over the period of
the borrowings using the effective interest method.
B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to
the extent that it is probable that some or all of the facility will be drawn down. In this case, the
fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable
that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for
liquidity services and amortised over the period of the facility to which it relates.
(21) Accounts payable
A. Accounts payable are liabilities for purchases of raw materials, goods or services.
B. The Company initially measures accounts payable at fair value and subsequently amortises the
interest expense in profit or loss over the period of circulation using the effective interest method.
(22) Financial liabilities at fair value through profit or loss
A. Financial liabilities are classified in this category of held for trading if acquired principally for
the purpose of repurchasing in the short-term. Derivatives are also categorised as financial
liabilities held for trading unless they are designated as hedges or financial liabilities at fair value
through profit or loss. Financial liabilities that meet one of the following criteria are designated
as at fair value through profit or loss at initial recognition:
(a) Hybrid (combined) contracts; or
(b) They eliminate or significantly reduce a measurement or recognition inconsistency; or
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2018 Annual Report
(c) They are managed and their performance is evaluated on a fair value basis, in accordance with
a documented risk management policy.
B. At initial recognition, the Company measures the financial liabilities at fair value. All related
transaction costs are recognised in profit or loss. The Company subsequently measures these
financial liabilities at fair value with any gain or loss recognised in profit or loss.
(23) Bonds payable
Ordinary corporate bonds issued by the Company are initially recognised at fair value less
transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption
value is presented as an addition to or deduction from bonds payable, which is amortised to profit
or loss over the period of bond circulation using the effective interest method as an adjustment to
‘finance costs’.
(24) Derecognition of financial liabilities
A financial liability is derecognised when the obligation specified in the contract is either discharged
or cancelled or expires.
(25) Offsetting financial instruments
Financial assets and liabilities are offset and reported in the net amount in the balance sheet when
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle
on a net basis or realise the asset and settle the liability simultaneously.
(26) Hedge accounting
A. At the inception of the hedging relationship, there is formal designation and documentation of
the hedging relationship and the Company’s risk management objective and strategy for
undertaking the hedge. That documentation shall include identification of the hedging instrument,
the hedged item, the nature of the risk being hedged and how the Company will assess whether
the hedging relationship meets the hedge effectiveness requirements.
B. The Company designates the hedging relationship as follows:
Cash flow hedge:
A hedge of the exposure to variability in cash flows that is attributable to a particular risk
associated with a recognised asset or liability or a highly probable forecast transaction.
C. Cash flow hedges
(a)The cash flow hedge reserve associated with the hedged item is adjusted to the lower of the
following (in absolute amounts):
i. the cumulative gain or loss on the hedging instrument from inception of the hedge; and
ii.the cumulative change in fair value of the hedged item from inception of the hedge.
(b)The effective portion of the gain or loss on the hedging instrument is recognised in other
comprehensive income. The gain or loss on the hedging instrument relating to the ineffective
portion is recognised in profit or loss.
(c)The amount that has been accumulated in the cash flow hedge reserve in accordance with (a)
is accounted for as follows:
~29~
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~30~
~30~
~30~
~30~
336
2018 Annual Report
market
market
market
marketin
in
in
inhigh-quality
high-quality
high-quality
high-quality corporate
corporate
corporate
corporatebonds,
bonds,
bonds,
bonds, the
the
the
theCompany
Company
Company
Companyuses
uses
uses
usesinterest
interest
interest
interest rates
rates
rates
rates of
of
of
of government
government
government
government
bonds
bonds
bonds
bonds(at
(at
(at
(atthe
the
the
thebalance
balance
balance
balancesheet
sheet
sheet
sheetdate)
date)
date)
date)instead.
instead.
instead.
instead.
ii.
ii.
ii.
ii.Remeasurements
Remeasurements
Remeasurements
Remeasurementsarising
arising
arising
arisingon
on
on
ondefined
defined
defined
definedbenefit
benefit
benefit
benefitplans
plans
plans
plansare
are
are
arerecognised
recognised
recognised
recognisedin
in
in
inother
other
other
othercomprehensive
comprehensive
comprehensive
comprehensive
income
income
income
incomein
in
in
inthe
the
the
theperiod
period
period
periodin
in
in
inwhich
which
which
whichthey
they
they
theyarise
arise
arise
ariseand
and
and
andare
are
are
arerecorded
recorded
recorded
recordedas
as
as
asretained
retained
retained
retainedearnings.
earnings.
earnings.
earnings.
iii.
iii.
iii.
iii.Past
Past
Past
Pastservice
service
service
servicecosts
costs
costs
costsare
are
are
arerecognised
recognised
recognised
recognisedimmediately
immediately
immediately
immediatelyin
in
in
inprofit
profit
profit
profitor
or
or
orloss.
loss.
loss.
loss.
C.
C.
C.
C. Termination
Termination
Termination
Terminationbenefits
benefits
benefits
benefits
Termination
Termination
Termination
Termination benefits
benefits
benefits
benefits are
are
are
are employee
employee
employee
employee benefits
benefits
benefits
benefits provided
provided
provided
provided in
in
in
in exchange
exchange
exchange
exchange for
for
for
for the
the
the
the termination
termination
termination
termination of
of
of
of
employment
employment
employment
employment as
as
as
as aaaa result
result
result
result from
from
from
from either
either
either
either the
the
the
the Company’s
Company’s
Company’s
Company’s decision
decision
decision
decision to
to
to
to terminate
terminate
terminate
terminate an
an
an
an employee’s
employee’s
employee’s
employee’s
employment
employment
employment
employmentbefore
before
before
beforethe
the
the
thenormal
normal
normal
normalretirement
retirement
retirement
retirementdate,
date,
date,
date,or
or
or
oran
an
an
anemployee’s
employee’s
employee’s
employee’sdecision
decision
decision
decisionto
to
to
toaccept
accept
accept
acceptan
an
an
anoffer
offer
offer
offerof
of
of
of
redundancy
redundancy
redundancy
redundancybenefits
benefits
benefits
benefitsin
in
in
inexchange
exchange
exchange
exchangefor
for
for
forthe
the
the
thetermination
termination
termination
terminationof
of
of
ofemployment.
employment.
employment.
employment.The
The
The
TheCompany
Company
Company
Companyrecognises
recognises
recognises
recognises
expense
expense
expense
expenseas
as
as
asititititcan
can
can
canno
no
no
nolonger
longer
longer
longerwithdraw
withdraw
withdraw
withdrawan
an
an
anoffer
offer
offer
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of
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oftermination
termination
termination
terminationbenefits
benefits
benefits
benefitsor
or
or
orititititrecognises
recognises
recognises
recognisesrelating
relating
relating
relating
restructuring
restructuring
restructuring
restructuringcosts,
costs,
costs,
costs,whichever
whichever
whichever
whicheveris
is
is
isearlier.
earlier.
earlier.
earlier.Benefits
Benefits
Benefits
Benefitsthat
that
that
thatare
are
are
areexpected
expected
expected
expectedto
to
to
tobe
be
be
be due
due
due
duemore
more
more
morethan
than
than
than 12
12
12
12
months
months
months
monthsafter
after
after
afterbalance
balance
balance
balancesheet
sheet
sheet
sheetdate
date
date
dateshall
shall
shall
shallbe
be
be
bediscounted
discounted
discounted
discountedto
to
to
totheir
their
their
theirpresent
present
present
presentvalue.
value.
value.
value.
D.
D.
D.
D.Employees’
Employees’
Employees’
Employees’compensation
compensation
compensation
compensationandand
and
anddirectors’
directors’
directors’
directors’remuneration
remuneration
remuneration
remuneration
Employees’
Employees’
Employees’
Employees’compensation
compensation
compensation
compensationand
and
and
anddirectors’
directors’
directors’
directors’remuneration
remuneration
remuneration
remunerationare
are
are
arerecognised
recognised
recognised
recognisedas
as
as
asexpense
expense
expense
expenseand
and
and
andliability,
liability,
liability,
liability,
provided
provided
provided
provided that
that
that
that such
such
such
such recognition
recognition
recognition
recognition is
is
is
is required
required
required
required under
under
under
under legal
legal
legal
legal or
or
or
or constructive
constructive
constructive
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obligation
obligation
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and
and
and those
those
those
those
amounts
amounts
amounts
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can
can
can be
be
be
be reliably
reliably
reliably
reliably estimated.
estimated.
estimated.
estimated.Any
Any
Any
Any difference
difference
difference
difference between
between
between
between the
the
the
the resolved
resolved
resolved
resolved amounts
amounts
amounts
amounts and
and
and
and the
the
the
the
subsequently
subsequently
subsequently
subsequentlyactual
actual
actual
actualdistributed
distributed
distributed
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amounts
amounts
amountsis
is
is
isaccounted
accounted
accounted
accountedfor
for
for
foras
as
as
aschanges
changes
changes
changesin
in
in
inestimates.
estimates.
estimates.
estimates.If
If
If
Ifemployee
employee
employee
employee
compensation
compensation
compensation
compensationis
is
is
ispaid
paid
paid
paidby
by
by
byshares,
shares,
shares,
shares, the
the
the
theCompany
Company
Company
Companycalculates
calculates
calculates
calculatesthe
the
the
thenumber
number
number
numberof
of
of
ofshares
shares
shares
sharesbased
based
based
basedon
on
on
on the
the
the
the
closing
closing
closing
closingprice
price
price
priceat
at
at
atthe
the
the
theprevious
previous
previous
previousday
day
day
dayof
of
of
ofthe
the
the
theboard
board
board
boardmeeting
meeting
meeting
meetingresolution.
resolution.
resolution.
resolution.
(28)
(28)
(28)
(28)Income
Income
Income
Incometax
tax
tax
tax
A.
A.
A.
A.The
The
The
Thetax
tax
tax
taxexpense
expense
expense
expensefor
for
for
forthe
the
the
theperiod
period
period
periodcomprises
comprises
comprises
comprisescurrent
current
current
currentand
and
and
anddeferred
deferred
deferred
deferredtax.
tax.
tax.
tax.Tax
Tax
Tax
Taxis
is
is
isrecognised
recognised
recognised
recognisedin
in
in
inprofit
profit
profit
profitor
or
or
or
loss,
loss,
loss,
loss,except
except
except
exceptto
to
to
tothe
the
the
theextent
extent
extent
extentthat
that
that
thatititititrelates
relates
relates
relatesto
to
to
toitems
items
items
itemsrecognised
recognised
recognised
recognisedinin
in
inother
other
other
othercomprehensive
comprehensive
comprehensive
comprehensiveincome
income
income
incomeor or
or
or
items
items
items
itemsrecognised
recognised
recognised
recogniseddirectly
directly
directly
directlyin
in
in
inequity,
equity,
equity,
equity,in
in
in
inwhich
which
which
whichcases
cases
cases
casesthe
the
the
thetax
tax
tax
taxis
is
is
isrecognised
recognised
recognised
recognisedin
in
in
inother
other
other
othercomprehensive
comprehensive
comprehensive
comprehensive
income
income
income
incomeoror
or
orequity.
equity.
equity.
equity.
B.
B.
B.
B.The
The
The
Thecurrent
current
current
currentincome
income
income
incometax
tax
tax
taxexpense
expense
expense
expenseis
is
is
iscalculated
calculated
calculated
calculatedon
on
on
onthe
the
the
thebasis
basis
basis
basisof
of
of
ofthe
the
the
thetax
tax
tax
taxlaws
laws
laws
lawsenacted
enacted
enacted
enactedoror
or
orsubstantively
substantively
substantively
substantively
enacted
enacted
enacted
enactedat
at
at
atthe
the
the
thebalance
balance
balance
balancesheet
sheet
sheet
sheetdate
date
date
datein
in
in
inthe
the
the
thecountries
countries
countries
countrieswhere
where
where
wherethe
the
the
theCompany
Company
Company
Companyand and
and
andits
its
its
itssubsidiaries
subsidiaries
subsidiaries
subsidiariesoperate
operate
operate
operate
and
and
and
andgenerate
generate
generate
generatetaxable
taxable
taxable
taxableincome.
income.
income.
income.Management
Management
Management
Managementperiodically
periodically
periodically
periodicallyevaluates
evaluates
evaluates
evaluatespositions
positions
positions
positionstaken taken
taken
takenin
in
in
intax
tax
tax
taxreturns
returns
returns
returns
with
with
with
withrespect
respect
respect
respectto
to
to
tosituations
situations
situations
situationsin
in
in
inaccordance
accordance
accordance
accordancewith
with
with
withapplicable
applicable
applicable
applicabletax
tax
tax
taxregulations.
regulations.
regulations.
regulations.ItItItItestablishes
establishes
establishes
establishesprovisions
provisions
provisions
provisions
where
where
where
whereappropriate
appropriate
appropriate
appropriatebased
based
based
basedon
on
on
onthe
the
the
theamounts
amounts
amounts
amountsexpected
expected
expected
expectedto
to
to
tobe
be
be
bepaid
paid
paid
paidto
to
to
tothe
the
the
thetax
tax
tax
taxauthorities.
authorities.
authorities.
authorities.An
An
An
Anadditional
additional
additional
additional
tax
tax
tax
taxis
is
is
islevied
levied
levied
leviedon
on
on
onthe
the
the
theunappropriated
unappropriated
unappropriated
unappropriatedretained
retained
retained
retainedearnings
earnings
earnings
earningsand
and
and
andis
is
is
isrecorded
recorded
recorded
recordedas as
as
asincome
income
income
incometax
tax
tax
taxexpense
expense
expense
expenseinin
in
in
the
the
the
theyear
year
year
yearthe
the
the
thestockholders
stockholders
stockholders
stockholdersresolve
resolve
resolve
resolveto
to
to
toretain
retain
retain
retainthe
the
the
theearnings.
earnings.
earnings.
earnings.
C.
C.
C.
C. Deferred
Deferred
Deferred
Deferred income
income
income
income tax
tax
tax
tax is
is
is
is recognised,
recognised,
recognised,
recognised, using
using
using
using the
the
the
the balance
balance
balance
balance sheet
sheet
sheet
sheet liability
liability
liability
liability method,
method,
method,
method, on
on
on
on temporary
temporary
temporary
temporary
differences
differences
differences
differencesarising
arising
arising
arisingbetween
between
between
betweenthe
the
the
thetax
tax
tax
taxbases
bases
bases
basesof
of
of
ofassets
assets
assets
assetsand
and
and
andliabilities
liabilities
liabilities
liabilitiesand
and
and
andtheir
their
their
theircarrying
carrying
carrying
carryingamounts
amounts
amounts
amountsinin
in
in
the
the
the
theparent
parent
parent
parentcompany
company
company
companyonly
only
only
onlybalance
balance
balance
balancesheet.
sheet.
sheet.
sheet.Deferred
Deferred
Deferred
Deferredincome
income
income
incometax
tax
tax
taxis
is
is
isprovided
provided
provided
providedon
on
on
ontemporary
temporary
temporary
differences
differences
differences
arising
arising
arising
arisingon
on
on
oninvestments
investments
investments
investmentsinin
in
insubsidiaries
subsidiaries
subsidiaries
subsidiariesand
and
and
andassociates,
associates,
associates,
associates,except
except
except
exceptwhere
where
where
wherethe the
the
thetiming
timing
timing
timingof
of
of
ofthe
the
the
thereversal
reversal
reversal
reversalof
of
of
of
the
the
the
thetemporary
temporary
temporary
temporarydifference
difference
difference
differenceisis
is
iscontrolled
controlled
controlled
controlledby
by
by
bythe
the
the
theCompany
Company
Company
Companyandand
and
andititititis
is
is
isprobable
probable
probable
probablethat
that
that
thatthe
the
the
thetemporary
temporary
temporary
temporary
difference
difference
difference
differencewill
will
will
willnot
not
not
notreverse
reverse
reverse
reversein
in
in
inthe
the
the
theforeseeable
foreseeable
foreseeable
foreseeablefuture.
future.
future.
future.Deferred
Deferred
Deferred
Deferredincome
income
income
incometax
tax
tax
taxis
is
is
isdetermined
determined
determined
determinedusing
using
using
usingtax
tax
tax
tax
~31~
~31~
~31~
~31~
337
rates and laws that have been enacted or substantially enacted by the balance sheet date and are
expected to apply when the related deferred income tax asset is realised or the deferred income
tax liability is settled.
D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised. At each balance sheet
date, unrecognised and recognised deferred income tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount reported in the balance
sheet when there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred
income tax assets and liabilities are offset on the balance sheet when the entity has the legally
enforceable right to offset current tax assets against current tax liabilities and they are levied by
the same taxation authority on either the same entity or different entities that intend to settle on a
net basis or realise the asset and settle the liability simultaneously.
F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from
acquisitions of equipment or technology, research and development expenditures and equity
investments to the extent that it is possible that future taxable profit will be available against which
the unused tax credits can be utilised.
(29) Dividends
Dividends are recorded in the Company’s financial statements in the period in which they are
resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends
are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the
effective date of new shares issuance.
(30) Revenue recognition
A. Sales of services
when the outcome of services provided can be estimated reliably. The stage of completion of a
service contract is measured by the percentage of the actual services performed as of the financial
reporting date to the total services to be performed. If the outcome of a service contract cannot
be estimated reliably, contract revenue should be recognised only to the extent that contract costs
incurred are likely to be recoverable.
B. Rental revenue
The Company leases ships and shipping spaces under IAS 17, ‘Leases’. Lease assets are
classified as finance leases or operating leases based on the transferred proportion of the risks
and rewards incidental to ownership of the leased asset, and recognised in revenue over the lease
term.
~32~
338
2018 Annual Report
5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION

UNCERTAINTY
The preparation of these parent company only financial statements requires management to make critical
judgements in applying the Company’s accounting policies and make critical assumptions and estimates
concerning future events. Assumptions and estimates may differ from the actual results and are
continually evaluated and adjusted based on historical experience and other factors. Such assumptions
and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year; and the related information is addressed below:
(1)Critical judgements in applying the Company’s accounting policies
None.
(2)Critical accounting estimates and assumptions
A.Revenue recognition
Revenue from delivering services and related costs are recognised under the percentage-of-
completion method when the outcome of services provided can be estimated reliably. The stage of
completion of a service contract is measured by the percentage of the actual services performed as
of the financial reporting date to the total services to be performed.
B.Impairment assessment of tangible assets
The Company assesses impairment based on its subjective judgement and determines the separate
cash flows of a specific group of assets, useful lives of assets and the future possible income and
expenses arising from the assets depending on how assets are utilized and industrial characteristics.
Any changes of economic circumstances or estimates due to the change of Company strategy might
cause material impairment on assets in the future.
As of December 31, 2018, the Company recognised property, plant and equipment, amounting to
$35,045,526.
6. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
Cash on hand and petty cash $ 14,807 $ 13,433
Checking accounts and demand deposits 2,594,385 2,656,471
Time deposits 19,063,265 20,373,609
$ 21,672,457 $ 23,043,513
A.The Company transacts with a variety of financial institutions all with high credit quality to
disperse credit risk, so it expects that the probability of counterparty default is remote.
B.The Company has no cash and cash equivalents pledged to others.
~33~
339
(2)
(2)
(2)Financial
Financial
Financialassets
assets
assetsat
at
atfair
fair
fairvalue
value
valuethrough
through
throughother
other
othercomprehensive
comprehensive
comprehensiveincome
income
income
Items
Items
Items December
December
December31,
31,
31,2018
2018
2018
Non-current
Non-current
Non-currentitems:
items:
items:
Listed
Listed
Listed(TSE
(TSE
(TSEandand
andOTC)
OTC)
OTC)stocks
stocks
stocks $$$ 490,801
490,801
490,801
Unlisted
Unlisted
Unlistedstocks
stocks
stocks 91,058
91,058
91,058
581,859
581,859
581,859
Valuation
Valuation
Valuationadjustment
adjustment
adjustment 439,723
439,723
439,723
$$$ 1,021,582
1,021,582
1,021,582
A.
A.
A. The
The
The Company
Company
Company has has
has elected
elected
elected toto
to classify
classify
classify these
these
these investments
investments
investments that
that
that are
are
are considered
considered
considered to to
to be
be
be strategic
strategic
strategic
investments
investments
investmentsas as
asfinancial
financial
financialassets
assets
assetsat at
atfair
fair
fairvalue
value
valuethrough
through
throughother
other
othercomprehensive
comprehensive
comprehensiveincome.income.
income.TheThe
Thefair
fair
fairvalue
value
value
of
of
ofsuch
such
suchinvestments
investments
investmentsamounted
amounted
amountedto to
to$1,021,582
$1,021,582
$1,021,582at at
atDecember
December
December31, 31,
31,2018.
2018.
2018.
B.
B.
B.ForFor
For the
the
theyear
year
yearended
ended
endedDecember
December
December31, 31,
31, 2018,
2018,
2018,for for
forthe
the
theconsideration
consideration
consideration of of
of operations,
operations,
operations,thethe
theCompany
Company
Companysold sold
sold
shares
shares
sharesofof
oflisted
listed
listedstocks
stocks
stockswith
with
withaaafair
fair
fairvalue
value
valueof of
of$342,661
$342,661
$342,661of of
ofwhich
which
whichaaacumulative
cumulative
cumulativedisposal
disposal
disposalgain
gain
gainofof
of$13,332
$13,332
$13,332
was
was
wasrecognised.
recognised.
recognised.
C.
C.
C.Amounts
Amounts
Amountsrecognised
recognised
recognisedin in
inprofit
profit
profitoror
orloss
loss
lossand
and
andother
other
othercomprehensive
comprehensive
comprehensiveincomeincome
incomein in
inrelation
relation
relationto
to
tothe
the
thefinancial
financial
financial
assets
assets
assetsatat
atfair
fair
fairvalue
value
valuethrough
through
throughother
other
othercomprehensive
comprehensive
incomeare
are
arelisted
listed
listedbelow:
below:
below:
Year
Year
Yearended
ended
ended
December
December
December31,
31,
31,2018
2018
2018
Equity
Equity
Equityinstruments
instruments
instrumentsat at
atfair
fair
fairvalue
value
valuethrough
through
throughother
other
other
comprehensive
comprehensive
income
Fair
Fair
Fairvalue
value
valuechange
change
changerecognised
recognised
recognisedin in
inother
other
other
comprehensive
comprehensive
income $$$ 53,906
53,906
53,906
Income
Income
Incometax tax
taxrecognised
recognised
recognisedin in
inother
other
other
comprehensive
comprehensive
income $$$ 6,699
6,699
6,699
Cumulative
Cumulative
Cumulativegainsgains
gainsreclassified
reclassified
reclassifiedtoto
to
retained
retained
retainedearnings
earnings
earningsdue due
duetoto
toderecognition
derecognition
derecognition $$$ 13,332
13,332
13,332
Dividend
Dividend
Dividendincome
income
incomerecognised
recognised
recognisedin in
inprofit
profit
profitor
or
orloss
loss
loss
Held
Held
Heldat at
atend
end
endofof
ofperiod
period
period $$$ 48,031
48,031
48,031
D.
D.
D. AsAs
As at
at
at December
December
December 31, 31,
31, 2018,
2018,
2018, without
without
without taking
taking
taking into
into
into account
account
account anyany
any collateral
collateral
collateral held
held
held or
or
or other
other
other credit
credit
credit
enhancements,
enhancements,
enhancements,the the
themaximum
maximum
maximumexposure
exposure
exposureto to
tocredit
credit
creditrisk
risk
riskin
in
inrespect
respect
respectofof
ofthe
the
theamount
amount
amountthat
that
thatbest
best
bestrepresents
represents
represents
the
the
thefinancial
financial
financialassets
assets
assetsatat
atfair
fair
fairvalue
value
valuethrough
through
throughother
other
othercomprehensive
comprehensive
incomeheldheld
heldby
by
bythe
the
theCompany
Company
Companywas was
was
$1,021,582.
$1,021,582.
$1,021,582.
E.
E.
E.Information
Information
relating
relatingto to
tocredit
credit
creditrisk
risk
riskofof
of financial
financial
financial assets
assets
assets at
at
atfair
fair
fairvalue
value
valuethrough
through
through other
other
othercomprehensive
comprehensive
comprehensive
income
income
incomeisisisprovided
provided
providedin in
inNote
Note
Note12(3).
12(3).
12(3).
F.
F.
F.Information
Information
Informationon on
onavailable-for-sale
available-for-sale
financial
financialassets
assets
assetsand
and
andfinancial
financial
financialassets
assets
assetsat
at
atcost
cost
costas
as
asof
of
ofDecember
December
December31, 31,
31,
2017
2017
2017isis
isprovided
provided
providedin in
inNote
Note
Note12(4).
12(4).
12(4).
(3)
(3)
(3)Financial
Financial
Financialassets
assets
assetsatat
atamortised
amortised
amortisedcostcost
cost
Items
Items
Items December
December
December31,
31,
31,2018
2018
2018
Non-current
Non-current
Non-currentitems:
items:
items:
Financial
Financial
Financialbonds
bonds
bonds $$$ 100,000
100,000
100,000
~34~
~34~
~34~
340
2018 Annual Report
A.
A. Amounts
Amounts recognised
recognised in
in profit
profit or
or loss
loss in
in relation
relation to
to financial
financial assets
assets at
at amortised
amortised cost
cost are
are listed
listed
below:
below:
Year
Year ended
ended
December
December 31,
31, 2018
2018
Interest
Interest income
income $$ 2,200
2,200
B.
B. As
As at
at December
December 31,
31, 2018,
2018, without
without taking
taking into
into account
account any
any collateral
collateral held
held or
or other
other credit
credit
enhancements,
enhancements, the
the maximum
maximum exposure
exposure to
to credit
credit risk
risk in
in respect
respect of
of the
the amount
amount that
that best
best represents
represents
the
the financial
financial assets
assets at
at amortised
amortised cost
cost held
held by
by the
the Company
Company was
was $100,000.
$100,000.
C.
C. The
The Company
Company has
has no
no financial
financial assets
assets at
at amortised
amortised cost
cost held
held by
by the
the Company
Company pledged
pledged to
to others.
others.
D.
D. Information
Information on
on held-to-maturity
held-to-maturity financial
financial assets
assets and
and investments
investments in
in debt
debt instruments
instruments without
without
active
active market
market as
as of
of December
December 31,
31, 2017
2017 are
are provided
provided in
in Note
Note 12(4).
12(4).
(4)
(4) Notes
Notes and
and accounts
accounts receivable
receivable
December
December 31,
31, 2018
2018 December
December 31,
31, 2017
2017
Notes
Notes receivable
receivable $$ 43
43 $$ 72
72
Less:
Less: Allowance
Allowance for
for bad
bad debts
debts -- --
$$ 43
43 $$ 72
72
Accounts
Accounts receivable
receivable (including
(including related
related parties)
parties) $$ 3,423,679
3,423,679 $$ 3,143,204
3,143,204
Less:
Less: Allowance
Allowance for
for bad
bad debts
debts (( 65,249)
65,249) (( 68,482)
68,482)
$$ 3,358,430
3,358,430 $$ 3,074,722
3,074,722
A.
A. The
The ageing
ageing analysis
analysis of
of accounts
accounts receivable
receivable and
and notes
notes receivable
receivable are
are as
as follows:
follows:
December
December 31,31, 2018
2018 December
December 31,
31, 2017
2017
Accounts
Accounts receivable
receivable Notes
Notes receivable
receivable Accounts
Accounts receivable
receivable Notes
Notes receivable
receivable
Not
Not impaired
impaired $$ 2,376,219
2,376,219 $$ 43
43 $$ 2,508,727
2,508,727 $$ 72
72
Up
Up toto 30
30 days
days 635,760
635,760 -- 301,805
301,805 --
31
31 to
to 180
180 days
days 282,204
282,204 -- 202,127
202,127 --
Over
Over 181
181 days
days 64,247
64,247 -- 62,063
62,063 --
$$ 3,358,430
3,358,430 $$ 43
43 $$ 3,074,722
3,074,722 $$ 72
72
The
The above
above ageing
ageing analysis
analysis was
was based
based on
on past
past due
due date.
date.
B.
B. The
The Company
Company has
has no
no notes
notes and
and accounts
accounts receivable
receivable held
held by
by the
the Company
Company pledged
pledged to
to others.
others.
C.
C.As
As at
at December
December 31,
31, 2018
2018 and
and 2017,
2017, without
without taking
taking into
into account
account any
any collateral
collateral held
held or
or other
other credit
credit
enhancements,
enhancements, the
the maximum
maximum exposure
exposure to
to credit
credit risk
risk in
in respect
respect of
of the
the amount
amount that
that best
best represents
represents
the
the Company’s
Company’s notes
notes receivable
receivable were
were $43
$43 and
and $72,
$72, respectively;
respectively; and
and the
the amount
amount that
that best
best
represents
represents the
the Company’s
Company’s accounts
accounts receivable
receivable were
were $3,358,430
$3,358,430 and
and $3,074,722,
$3,074,722, respectively.
respectively.
D.
D. Information
relating to
to credit
credit risk
risk of
of accounts
accounts receivable
receivable and
and notes
notes receivable
receivable isis provided
provided in
in Note
Note
12(2).
12(2).
~35~
~35~
341
(5) Inventories
December 31, 2018
Allowance for
Ship fuel $ 908,122 $ - $ 908,122
December 31, 2017
Allowance for
Ship fuel $ 688,877 $ - $ 688,877
Shipowner's accounts $ 1,270,841 $ 1,647,486
Agent accounts 417,986 250,116
Temporary debits 963,602 114,323
$ 2,774,061 $ 2,129,650
A.Shipowner’s accounts
(a)These pertain to temporary accounts between the Company and Evergreen International S.A.,
Gaining Enterprise S.A., Greencompass Marine S.A., Italia Marittima S.p.A., Evergreen
Marine (UK) Ltd., Evergreen Marine (Hong Kong) Ltd. and Evergreen Marine (Singapore) Pte.
Ltd.. These accounts occur as these ship owners incur foreign port expenses and related rental
expenses.
(b)In response to market competition and enhancement of global transportation network to provide
better logistics services to customers, the Company has joined Cosco Container Lines Co., Ltd.,
Kawasaki Kisen Kaisha, Ltd., Yang Ming (UK), Ltd. and Hanjin Shipping Co., Ltd. to form the
new CKYHE Alliance for the trading of shipping spaces from March 1, 2014 to March 31,2017.
(c) In response to market competition and enhancement of global transportation network to provide
better logistics services to customers, the Company has joined Cosco Container Lines Co., Ltd.,
CMA CGM, Ltd., and the Orient Overseas Container Line, Ltd. to form the OCEAN Alliance
on March 31, 2017 for trading of shipping space.
B.Agency accounts
These accounts occur when domestic and foreign agencies, based on the agreement with the
Company, deal with foreign port formalities regarding arrival and departure of ships, cargo loading,
discharging and forwarding, collection of freight, and payment of expenses incurred in the foreign
port.
~36~
342
2018 Annual Report
(7) Investments accounted for using equity method

Details of long-term equity investments accounted for using equity method are set forth below:
Subsidiary of the Company:
Peony Investment S.A. $ 28,571,763 $ 29,984,506
Evergreen Marine (Hong Kong) Ltd. 7,218,598 6,287,883
Everport Terminal Services Inc. 1,047,007 568,156
Taiwan Terminal Services Co., Ltd. 53,286 39,912
Associates of the Company:
Evergreen International Storage and Transport 8,981,075 8,554,230
Corporation
Taipei Port Container Terminal Corporation 1,026,338 977,049
Charng Yang Development Co., Ltd. 544,057 537,532
VIP Greenport Joint Stock Company 253,668 205,923
Evergreen Security Corporation 111,665 97,140
Evergreen Marine (Latin America), S.A. 3,474 4,364
$ 58,145,047 $ 56,719,097
A.The fair value of the Company’s associates which have quoted market price was as follows:
Evergreen International Storage and $ 5,814,345 $ 6,000,494
$ 17,108,587 $ 16,790,954
B.The above investment income or loss accounted for using the equity method was based on the
financial statements of the investees for the corresponding periods, which were audited by
independent accountants.
C.Subsidiary:
(a) For information on the subsidiaries, please refer to Note 4(3) of the consolidated financial
statements as of December 31, 2018.
(b) On August 11, 2017, the Board of Directors resolved to acquire Evergreen Marine (Hong Kong)
Ltd. On December 18, 2017, the Company purchased 80% of the shares of Evergreen Marine
(Hong Kong) Ltd. for cash of $6,452,225 (approx. USD 212,000) from subsidiary Peony
Investment S.A. Please refer to Note 6(31) to the 2018 consolidated financial statements.
(c) On August 13, 2018, the Board of Directors of the subsidiary, Evergreen Marine (Hong Kong)
Ltd., resolved to acquire Hatsu Marine (Hong Kong) Limited. On December 14, 2018, the
Company purchased 100% of the shares of Hatsu Marine (Hong Kong) Limited. for cash of
$3,265,341 (approx. USD 105,808) from other related party Chestnut Estate B.V.. Please refer
to Note 6(31) to the 2018 consolidated financial statements.
~37~
343
D.The basic information of the associates that are material to the Company is as follows:
Principal
place of Nature of Methods of
Company name business Ownership(%) relationship measurement
December December
31, 2018 31, 2017
With a right over Equity
Storage and Transport TW 40.36% 39.74%
20% to vote method
Corporation
Have a right to vote
EVA Airways Equity
TW 16.31% 16.31% in the Board of
Corporation method
Directors
E.The summarised financial information of the associates that are material to the Company is as
follows:
Balance sheet
Current assets $ 6,066,455 $ 5,429,946
Total net assets $ 22,530,677 $ 21,690,865

Unrealized income with affiliated
companies ( 1,471) ( 4,323)
Carrying amount of the associate $ 8,981,075 $ 8,554,230

Current assets $ 75,996,433 $ 69,002,340
Total net assets $ 70,119,735 $ 64,209,508
~38~
344
2018 Annual Report
Statement of comprehensive income

31, 2018 31, 2017
Revenue $ 7,742,438 $ 7,554,009
Profit for the period from
continuing operations $ 870,248 $ 884,258
Other comprehensive income (loss),
net of tax 351,587 ( 647,260)
Total comprehensive income $ 1,221,835 $ 236,998

31, 2018 31, 2017
Revenue $ 179,907,332 $ 163,561,731
Profit for the period from
continuing operations $ 7,214,513 $ 6,310,934
net of tax ( 543,495) ( 769,683)
Total comprehensive income $ 6,671,018 $ 5,541,251
F.The carrying amount of the Company’s interests in all individually immaterial associates and the
Company’s share of the operating results are summarized below:
As of December 31, 2018 and 2017, the carrying amount of the Company’s individually immaterial
associates amounted to $1,939,202 and $1,822,008, respectively.
31, 2018 31, 2017
Profit for the period from continuing $ 676,960 $ 344,532
operations
Other comprehensive loss, net of tax ( 3,309) ( 4,318)
Total comprehensive income $ 673,651 $ 340,214
G.On May 12, 2017, the Board of Directors resolved to purchase newly issued shares of VIP
Greenport Joint Stock Company for VND 12,500 thousand as an original shareholder. The
ownership percentage remains at 21.74% after the purchase.
H.On October 8, 2018, the Board of Directors during their meeting resolved to acquire 6,629
thousand shares of Evergreen International Storage and Transport Corporation’s shares from the
stock exchange market. The transaction price was $86,894, and the ownership percentage was
increased to 40.36% after the purchase.
~39~
345
346
(8)
(8)Property,
Property,plant
plantand
andequipment
equipment
Loading
Loadingand
and Computer and
Computerand
unloading
unloading communication Transportation
communication Transportation Office
Office Leasehold
Leasehold
Land
Land Buildings
Buildings equipment
equipment equipment
equipment equipment
equipment Ships
Ships equipment
equipment improvements
improvements Other
Other Total
Total
AtAtJanuary 2018
January1,1,2018
Cost
Cost $$ 558,532
558,532 $$ 402,956
402,956 $$ 6,043,080
6,043,080 $$ 137,898
137,898 $$ 5,034,842
5,034,842 $$25,314,393
25,314,393 $$ 207,819
207,819 $$ 555,741
555,741 $$ 73,690 38,328,951
73,690 $$ 38,328,951
Accumulated depreciation
Accumulateddepreciation 207,146)( (
- - ( ( 207,146) 4,149,926)
4,149,926)( ( 115,362)
115,362)( ( 1,654,349)
1,654,349)( ( 4,566,856)
4,566,856)( ( 169,263)
169,263)( ( 344,009)
344,009)( ( 3,353)
3,353)( ( 11,210,264)
11,210,264)
$$ 558,532
558,532 $$ 195,810
195,810 $$ 1,893,154
1,893,154 $$ 22,536
22,536 $$ 3,380,493
3,380,493 $$ 20,747,537
20,747,537 $$ 38,556
38,556 $$ 211,732
211,732 $$ 70,337 27,118,687
70,337 $$ 27,118,687
2018
2018
Opening
Openingnetnetbook
bookamount
amountasas
$$ 558,532
558,532 $$ 195,810
195,810 $$ 1,893,154
1,893,154 $$ 22,536
22,536 $$ 3,380,493
3,380,493 $$20,747,537
20,747,537 $$ 38,556
38,556 $$ 211,732
211,732 $$ 70,337
70,337 $$ 27,118,687
27,118,687
atatJanuary
January11
Additions
Additions -- -- 4,038
4,038 17,682
17,682 1,323,549
1,323,549 56,301
56,301 2,214
2,214 10,097
10,097 389
389 1,414,270
1,414,270
Disposals
Disposals -- --(( 1)1)( ( 106)
106)( ( 2,478)
2,478) - -( ( 9)9) -- --(( 2,594)
2,594)
Reclassifications
Reclassifications -- -- 50,697
50,697 818
818 1,989
1,989 8,490,790
8,490,790 -- -- 3,830
3,830 8,548,124
8,548,124
Depreciation
Depreciation --(( 7,748)
7,748)( ( 178,203)
178,203)( ( 14,404)
14,404)( ( 451,311)
451,311)( ( 1,241,895)
1,241,895)( ( 17,875)
17,875)( ( 117,867)
117,867)( ( 3,658)
3,658)( ( 2,032,961)
2,032,961)
Closing
Closingnet
netbook
bookamount
amountasas
$$ 558,532
558,532 $$ 188,062
188,062 $$ 1,769,685
1,769,685 $$ 26,526
26,526 $$ 4,252,242
4,252,242 $$ 28,052,733
28,052,733 $$ 22,886
22,886 $$ 103,962
103,962 $$ 70,898
70,898 $$ 35,045,526
35,045,526
atatDecember
December3131
AtAtDecember
December31,
31,2018
2018
Cost
Cost $$ 558,532
558,532 $$ 402,956
402,956 $$ 6,079,916
6,079,916 $$ 143,644
143,644 $$ 6,356,030
6,356,030 $$33,861,484
33,861,484 $$ 206,679
206,679 $$ 565,838
565,838 $$ 77,909 48,252,988
77,909 $$ 48,252,988
Accumulateddepreciation 214,894)( (
- - ( ( 214,894) 4,310,231)
4,310,231)( ( 117,118)
117,118)( ( 2,103,788)
2,103,788)( ( 5,808,751)
5,808,751)( ( 183,793)
183,793)( ( 461,876)
461,876)( ( 7,011)
7,011)( ( 13,207,462)
13,207,462)
$$ 558,532
558,532 $$ 188,062
188,062 $$ 1,769,685
1,769,685 $$ 26,526
26,526 $$ 4,252,242
4,252,242 $$ 28,052,733
28,052,733 $$ 22,886
22,886 $$ 103,962
103,962 $$ 70,898
70,898 $$ 35,045,526
35,045,526
~40~
~40~
unloading communication Transportation Office Leasehold
Land Buildings equipment equipment equipment Ships equipment improvements Other Total
At January 1, 2017
Cost $ 558,532 $ 402,956 $ 5,663,204 $ 120,405 $ 4,661,534 $ 24,554,286 $ 209,733 $ 337,340 $ 72,810 $ 36,580,800
Accumulated depreciation - ( 199,399) ( 3,990,202) ( 109,661) ( 1,879,108) ( 3,958,278) ( 159,570) ( 228,668) ( 531) ( 10,525,417)
$ 558,532 $ 203,557 $ 1,673,002 $ 10,744 $ 2,782,426 $ 20,596,008 $ 50,163 $ 108,672 $ 72,279 $ 26,055,383
2017
Opening net book amount as
$ 558,532 $ 203,557 $ 1,673,002 $ 10,744 $ 2,782,426 $ 20,596,008 $ 50,163 $ 108,672 $ 72,279 $ 26,055,383
at January 1
Additions - - 2,014 23,131 984,310 21,375 8,320 14,312 494 1,053,956
Disposals - - ( 38) ( 28) ( 14,252) ( 3,451) ( 26) - - ( 17,795)
Reclassifications - - 379,334 807 - 1,195,037 128 204,089 387 1,779,782
Depreciation - ( 7,747) ( 161,158) ( 12,118) ( 371,991) ( 1,061,432) ( 20,029) ( 115,341) ( 2,823) ( 1,752,639)
Closing net book amount as
$ 558,532 $ 195,810 $ 1,893,154 $ 22,536 $ 3,380,493 $ 20,747,537 $ 38,556 $ 211,732 $ 70,337 $ 27,118,687
at December 31

Cost $ 558,532 $ 402,956 $ 6,043,080 $ 137,898 $ 5,034,842 $ 25,314,393 $ 207,819 $ 555,741 $ 73,690 $ 38,328,951
Accumulated depreciation - ( 207,146) ( 4,149,926) ( 115,362) ( 1,654,349) ( 4,566,856) ( 169,263) ( 344,009) ( 3,353) ( 11,210,264)
$ 558,532 $ 195,810 $ 1,893,154 $ 22,536 $ 3,380,493 $ 20,747,537 $ 38,556 $ 211,732 $ 70,337 $ 27,118,687
A.The Company has issued a negative pledge to granting banks for drawing borrowings within the credit line to purchase the above
transportation equipment.
B.Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.
~41~
2018 Annual Report
347

At January 1, 2018
Cost $ 1,414,008 $ 975,187 $ 2,389,195
$ 1,414,008 $ 493,694 $ 1,907,702
2018
Opening net book amount as at January 1 $ 1,414,008 $ 493,694 $ 1,907,702
Depreciation charge - ( 19,145) ( 19,145)
Closing net book amount as at December 31 $ 1,414,008 $ 474,549 $ 1,888,557

Cost $ 1,414,008 $ 975,187 $ 2,389,195
$ 1,414,008 $ 474,549 $ 1,888,557

At January 1, 2017
Cost $ 1,414,008 $ 975,187 $ 2,389,195
$ 1,414,008 $ 512,838 $ 1,926,846
2017
Opening net book amount as at January 1 $ 1,414,008 $ 512,838 $ 1,926,846
Depreciation charge - ( 19,144) ( 19,144)
Closing net book amount as at December 31 $ 1,414,008 $ 493,694 $ 1,907,702

Cost $ 1,414,008 $ 975,187 $ 2,389,195
$ 1,414,008 $ 493,694 $ 1,907,702
~42~
348
2018 Annual Report
A.Rental income from the investment property and direct operating expenses arising from the
investment property are shown below:

31, 2018 31, 2017
Rental income from investment property $ 101,447 $ 102,753
Direct operating expenses arising from the
investment property that generated rental
income during the year $ 19,145 $ 19,144
Direct operating expenses arising from the
investment property that did not generate
rental income during the year $ - $ -
B.The fair value of the investment property held by the Company as at December 31, 2018 and 2017
was $3,566,686 and $3,562,523, respectively. The fair value measurements were based on the
market prices of recently sold properties in the immediate vicinity of a certain property, which is
categorised within Level 2 in the fair value hierarchy.
C.Information about the investment property that was pledged to others as collaterals is provided in
Note 8.
Prepayments for equipment $ 957,350 $ 3,235,888
Refundable deposits 19,261 18,415
$ 976,611 $ 3,254,303
A.Amount of borrowing costs capitalized as part of prepayment for equipment and the range of the
interest rates for such capitalization are as follows:
31, 2018 31, 2017
Amount capitalised $ 31,368 $ 42,773
Interest rate 0.86%~1.59% 1.31%~1.59%
B.Movement in prepayments for equipment for the years ended December 31, 2018 and 2017 are
as follows:

31, 2018 31, 2017
At January 1 $ 3,235,888 $ 2,656,169
Additions 6,269,586 2,359,501
Reclassified to property, plant and
equipment ( 8,548,124) ( 1,779,782)
At December 31 $ 957,350 $ 3,235,888
~43~
349
(11) Other current liabilities

Long-term liabilities - current portion $ 6,376,400 $ 7,738,706
Shipowner's accounts 1,609,680 1,939,253
Agency accounts 1,047,237 1,329,979
Others 7,503 21,980
$ 9,040,820 $ 11,029,918
(12) Corporate bonds payable

Domestic secured corporate bonds $ 10,000,000 $ 8,000,000
Less: Current portion or exercise of put
options - -
$ 10,000,000 $ 8,000,000
A. On June 27, 2018, the Company issued its fourteenth domestic secured corporate bonds (referred
herein as the “Fourteenth Bonds”), totaling $2,000,000, with each par value of $1,000. On June 7,
2018, the Bonds were qualified as the green bonds based on the Securities-TPEx-Bond No.
1070014617 issued by Taipei Exchange. The major terms of the issuance are set forth below:
(a) Period: 5 years (June 27, 2018 to June 27, 2023)
Repayments for the Fourteenth Bonds are paid annually on coupon rate, starting a year from
the issuing date. The principal of the Fourteenth Bonds shall be repaid in lump sum at maturity.
(d) Collaterals
The Fourteenth Bonds are secured and are guaranteed by First Commercial Bank.
B. On April 25, 2017, the Company issued its thirteenth domestic secured corporate bonds (referred
herein as the “Thirteenth Bonds”), totaling $8,000,000. The Thirteenth Bonds are categorized
into Bond A, B, C, D, E, F and G, depending on the guarantee institution. Bond A totals
$2,000,000, and the rest total $6,000,000, with each par value of $1,000,000. The major terms
of the issuance are set forth below:
Repayments for the Thirteenth Bonds are paid annually on coupon rate, starting a year from
the issuing date. For each category of the bonds mentioned above, half the principal must be
paid at the end of the fourth year, and another half at the maturity date.
~44~
350
2018 Annual Report
(d) Collaterals
The Thirteenth Bonds are secured. Bond A is guaranteed by Hua Nan Bank, Bond B is
guaranteed by First Bank, Bond C is guaranteed by Mega International Commercial Bank,
Bond D is guaranteed by Land Bank of Taiwan, Bond E is guaranteed by Chang Hwa Bank,
Bond F is guaranteed by Taiwan Cooperative Bank, and Bond G is guaranteed by Bank
Sinopac.
C. On April 26, 2012, the Company issued its twelfth domestic secured corporate bonds (referred
herein as the “Twelfth Bonds”), totaling $3,000,000. The Twelfth Bonds are categorized into
Bond A and B, depending on the guarantee institution. Bond A totals $2,000,000, and Bond B
totals $1,000,000. The major terms of the issuance are set forth below:
Repayments for the Twelfth Bonds are paid annually on coupon rate, starting a year from the
issuing date. The principal of the Twelfth Bonds shall be repaid in lump sum at maturity.
(d) Collaterals
The Twelfth Bonds are secured. Bond A are guaranteed by Bank Sinopac, and Bond B are
guaranteed by Far Eastern International Bank.
(13) Long-term loans
Secured bank loans $ 22,579,047 $ 18,945,840
Unsecured bank loans 17,296,382 20,745,040
Add: Unrealized foreign exchange loss 223,179 10,339
Less: Deferred expenses - hosting fee credit ( 13,417) ( 10,627)
40,085,191 39,690,592
Less: Current portion (recorded as other
current liabilities) ( 6,376,400) ( 7,738,706)
$ 33,708,791 $ 31,951,886
Maturity range 2019.03~2027.03 2018.04~2027.03
Interest rate 1.12%~3.80% 1.18%~2.56%
Please refer to Note 8 for details of the collaterals pledged for the above long-term loans.
(14) Other non-current liabilities
Accrued pension liabilities $ 1,321,223 $ 1,453,219
$ 1,333,593 $ 1,465,272
~45~
351
(15) Pension
A.(a)In accordance with the Labor Standards Act (“the Act”), covering all regular employees’
service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service
years thereafter of employees who chose to continue to be subject to the pension mechanism
under the Act. Under the defined benefit pension plan, two units are accrued for each year of
service for the first 15 years and one unit for each additional year thereafter, subject to a
maximum of 45 units. Pension benefits are based on the number of units accrued and the
average monthly salaries and wages of the last 6 months prior to retirement. The Company
contributes monthly an amount equal to 15% of the employees’ monthly salaries and wages to
the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the
independent retirement fund committee. Also, the Company would assess the balance in the
aforementioned labor pension reserve account by December 31, every year. If the account
balance is insufficient to pay the pension calculated by the aforementioned method to the
employees expected to qualify for retirement in the following year, the Company will make
contributions for the deficit by next March.
(b)The amounts recognised in the balance sheet are as follows:
Present value of defined benefit obligations ($ 1,847,634) ($ 1,893,481)
Fair value of plan assets 526,411 440,262
Net defined benefit liability ($ 1,321,223) ($ 1,453,219)
(c)Movements in net defined benefit liabilities are as follows:
Present value of
defined benefit Fair value of Net defined
obligations plan assets benefit liability
Balance at January 1 ($ 1,893,481) $ 440,262 ($ 1,453,219)
( 1,928,299) 444,552 ( 1,483,747)
Remeasurements:
interest income or expense) - 14,422 14,422
Change in financial assumptions - - -
( 61,944) 14,422 ( 47,522)
Pension fund contribution - 184,249 184,249
Paid pension 142,609 ( 116,812) 25,797
Balance at December 31 ($ 1,847,634) $ 526,411 ($ 1,321,223)
~46~
352
2018 Annual Report
Present value of
defined benefit Fair value of Net defined
obligations plan assets benefit liability
Balance at January 1 ($ 1,952,460) $ 472,588 ($ 1,479,872)
( 1,994,455) 478,144 ( 1,516,311)
Remeasurements:
interest income or expense) - ( 1,045) ( 1,045)
( 80,553) ( 1,045) ( 81,598)
Pension fund contribution - 127,890 127,890
Paid pension 181,527 ( 164,727) 16,800
Balance at December 31 ($ 1,893,481) $ 440,262 ($ 1,453,219)
(d)The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit
pension plan in accordance with the Fund’s annual investment and utilisation plan and the
“Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement
Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign
financial institutions, investment in domestic or foreign listed, over-the-counter, or private
placement equity securities, investment in domestic or foreign real estate securitization
products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual
distributions on the final financial statements shall be no less than the earnings attainable from
the amounts accrued from two-year time deposits with the interest rates offered by local banks.
If the earnings is less than aforementioned rates, government shall make payment for the deficit
after being authorized by the Regulator. The Company has no right to participate in managing
and operating that fund and hence the Company is unable to disclose the classification of plan
assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of
plan assets as of December 31, 2018 and 2017 is given in the Annual Labor Retirement Fund
Utilisation Report announced by the government.
(e)The principal actuarial assumptions used were as follows:
Discount rate 1.00% 1.00%
Future salary increases 2.00% 2.00%
~47~
353
Assumptions regarding future mortality rate was estimated based on the 5th Taiwan Standard
Ordinary Experience Mortality Table.
Because the main actuarial assumption changed, the present value of defined benefit obligation
is affected. The analysis was as follows:

Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2018
defined benefit obligation ($ 44,122) $ 45,798 $ 29,815 ($ 28,837)
December 31, 2017
defined benefit obligation ($ 45,806) $ 47,594 $ 30,388 ($ 29,361)
The sensitivity analysis above is based on one assumption which changed while the other
conditions remain unchanged. In practice, more than one assumption may change all at once.
The method of analysing sensitivity and the method of calculating net pension liability in the
balance sheet are the same.
The methods and types of assumptions used in preparing the sensitivity analysis did not change
compared to the previous period.
(f)Expected contributions to the defined benefit pension plans of the Company for the year ending
December 31, 2018 amounts to $103,676.
(g)As of December 31, 2018, the weighted average duration of the retirement plan is 10 years.
The analysis of timing of the future pension payment was as follows:
Within 1 year $ 97,329
1~2 year 95,085
2~5 years 309,243
Over 5 years 1,505,289
$ 2,006,946
B.(a)Effective July 1, 2005, the Company has established a defined contribution pension plan (the
“New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with
R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based
on 6% of the employees’ monthly salaries and wages to the employees’ individual pension
accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump
sum upon termination of employment.
(b)The pension costs under defined contribution pension plans of the Company for the years ended
December 31, 2018 and 2017 were $52,913 and $48,188, respectively.
~48~
354
2018 Annual Report
(16) Capital stock

A. As of December 31, 2018, the Company’s authorised capital was $50,000,000, and the paid-in
capital was $45,129,738, divided into 4,512,974 thousand shares of common stocks with a par
value of $10 (in dollars) per share. All proceeds from shares issued have been collected.
B. On August 11, 2017, the Board of Directors of the Company resolved to increase capital of
$5,000,000 by issuing 500,000 thousand shares at a par value of $10 (in dollars) per share. Of
which 50,000 thousand shares are reserved for employee stock purchase plan. The proposal of
capital increase has been reported and become effective on December 5, 2017. The amount of
shares was $7,711,222. All proceeds from share issuance was completed on December 27, 2017.
C. The stockholders at their annual stockholders meeting on June 21, 2018, resolved to issue 200,618
thousand shares through capitalization of unappropriated retained earnings of $2,006,178. The
proposal of the capitalisation of earnings was filed online with the Securities and Futures Bureau
of the Financial Supervisory Commission and went into effect on July 31, 2018. The Company
had filed registration of the capital increase through capitalisation of earnings with the Ministry
of Economic Affairs on September 18, 2018.
D. On August 13, 2018, the Board of Directors of the Company resolved to increase capital of
$3,000,000 by issuing 300,000 thousand shares at a par value of $10 (in dollars) per share. Of
which 50,000 thousand shares are reserved for employee stock purchase plan. The proposal of
capital increase has been reported and become effective on November 28, 2018. The amount of
shares was $3,226,890. All proceeds from share issuance was completed on December 21, 2018.
(17) Capital surplus
Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par
value on issuance of common stocks and donations can be used to cover accumulated deficit or to
issue new stocks or cash to shareholders in proportion to their share ownership, provided that the
Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that
the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-
in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal
reserve is insufficient.
~49~
355

Employee Adjustments to share
stock of changes in equity of
Share options associates and joint Donated
premium exercised ventures assets Others
At January 1 $ 8,606,393 $76,280 $ 2,148,243 $ 446 $ 6,713
Issuance of common
stock for cash 226,890 17,610 - - -
Recognition of change
in equity of associates
in portion to the
Company's ownership - - ( 23,430) - -
At December 31 $ 8,833,283 $93,890 $ 2,124,813 $ 446 $ 6,713

Employee Adjustments to share
stock of changes in equity of
Share options associates and joint Donated
premium exercised ventures assets Others
At January 1 $ 5,895,171 $ - $ 2,086,684 $ 446 $ 6,713
Issuance of common
stock for cash 2,711,222 76,280 - - -
Recognition of change
in equity of associates
in portion to the
Company's ownership - - 61,559 - -
At December 31 $ 8,606,393 $ 76,280 $ 2,148,243 $ 446 $ 6,713
~50~
356
2018 Annual Report
(18) Retained earnings

31, 2018 31, 2017
At January 1 $ 6,769,575 ($ 4,248,211)
Retrospective application 276,681 -
Balance at 1 January after adjustments $ 7,046,256 ($ 4,248,211)
Profit for the year 293,919 7,005,171
Legal reserve used to cover
accumulated deficit - 4,248,211
Distribution of earnings ( 3,509,166) -
Remeasurement on post employment
benefit obligations, net of tax ( 71,341) ( 235,596)
of associates and joint ventures 3,643 -
Disposal of investments in equity
instruments designated at fair value
through other comprehensive income 13,332 -
At December 31 $ 3,776,643 $ 6,769,575
A.According to the Company’s Articles of Incorporation, if there is any profit for a fiscal year, the
Company shall first make provision for income tax and cover prior years’ losses, then appropriate
10% of the residual amount as legal reserve. Dividends shall be proposed by the Board of
Directors and resolved by the stockholders.
B.Dividend policy
The Company is currently at the stable growth stage. In order to facilitate future expansion plans,
dividends to stockholders are distributed mutually in the form of both cash and stocks with the
basic principle that the ratio of cash dividends to total stock dividends shall not be lower than 10%.
C.Legal reserve
Except for covering accumulated deficit or issuing new stocks or cash to shareholders in
proportion to their share ownership, the legal reserve shall not be used for any other purpose. The
use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share
ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s
paid-in capital.
D.In accordance with the regulations, the Company shall set aside special reserve from the debit
balance on other equity items at the balance sheet date before distributing earnings. When debit
balance on other equity items is reversed subsequently, the reversed amount could be included in
the distributable earnings.
E.(a)For the year ended December 31, 2016, the Company incurred accumulated deficit. On June
22, 2017, the Board of Directors proposed to offset the accumulated deficit totaling $4,248,211
with the legal reserve.
~51~
357
E.(b)The appropriation of 2017 earnings was adopted by the stockholders on June 21, 2018 is as
follows:
Dividend per share
Amount (in dollars)
Appropriate cash dividends to shareholders $ 802,471 $ 0.2
Appropriate stock dividends to shareholders $ 2,006,178 $ 0.5
F. The appropriation of 2018 earnings was adopted by the Board of Directors on March 22, 2019 is
as follows:
Dividend per share
Amount (in dollars)
Appropriate cash dividends to shareholders $ - $ -
Appropriate stock dividends to shareholders $ - $ -
As of March 22, 2019, the above-mentioned 2018 earnings appropriation had not been resolved
by the stockholders.
G.For information relating to employees’ and directors’ remuneration, please refer to Note 6(26).
~52~
358
2018 Annual Report
(19) Other equity items
Unrealised
At January 1, 2018 $ 1,833,339 ($ 15,912) ($ 1,135,114) $ 682,313
Effects of retrospective
application ( 279,677) - - ( 279,677)
Balance at January 1 after $ 1,553,662 ($ 15,912) ($ 1,135,114) $ 402,636
retrospective adjustments
Revaluation – gross 67,238 - - 67,238
Revaluation – tax ( 6,350) - - ( 6,350)
Revaluation – associates ( 362,259) - - ( 362,259)
retained eranings – gross ( 13,332) - - ( 13,332)
retained eranings – associates ( 4,734) - - ( 4,734)
Cash flow hedges:
– Fair value loss in the period
– Associates - ( 42,737) - ( 42,737)
– Parent - - 1,004,409 1,004,409
– Parent – tax - - 746 746
– Associates - - 147,539 147,539
At December 31, 2018 $ 1,234,225 ($ 58,649) $ 17,580 $ 1,193,156
Unrealised
At January 1, 2017 $ 1,703,161 ($ 67,895) $ 1,254,622 $ 2,889,888
Revaluation – gross ( 92,521) - - ( 92,521)
Revaluation – tax 239 - - 239
Cash flow hedges:
– Fair value gain in the period
– Associates - 51,983 - 51,983
– Parent - - ( 2,046,070) ( 2,046,070)
– Parent – tax - - 2,295 2,295
– Associates - - ( 345,961) ( 345,961)
At December 31, 2017 $ 1,833,339 ($ 15,912) ($ 1,135,114) $ 682,313
~53~
359
(20) Operating revenue

Year ended December
31, 2018
Revenue from contracts with customers $ 33,747,653
Other - ship rental and slottage income 246,918
$ 33,994,571
A. Disaggregation of revenue from contracts with customers
The Company derives revenue from the transfer of services over time and at a point in time in
the following major businesses:
Year ended
December 31, 2018 Asia America Europe Other Total
Revenue from $ 10,056,018 $ 14,570,446 $ 5,788,675 $ 1,002,475 $ 31,417,614
external customer
contracts
Inter-segment
revenue 112,805 1,493,799 723,435 - 2,330,039
Total segment
revenue $ 10,168,823 $ 16,064,245 $ 6,512,110 $ 1,002,475 $ 33,747,653
B. Contract assets and liabilities
The Company has recognised the following revenue-related contract assets and liabilities:
! December 31, 2018
Contract assets:
Contract assets relating to marine freight income $ 682,327
Contract liabilities:
Contract liabilities – unearned marine freight income $ 431,290
Revenue recognised that was included in the contract liability balance at the beginning of the
period
Year ended December 31,
2018
Marine freight income $ 453,208
C. Related disclosures for 2017 operating revenue are provided in Note 12(5) B.
(21) Other gains -net
Year ended December 31, Year ended December 31,
2018 2017
Gains on disposal of property,
plant and equipment $ 7,594 $ 316,314
~54~
360
2018 Annual Report
(22) Other income

2018 2017
Rental revenue $ 102,599 $ 104,056
Dividend income 58,560 46,965
Interest income:
Interest income from bank deposits 256,984 237,683
other than financial assets at fair
value through profit or loss 2,200 2,339
Gain from bargain purchase - 1,534
Other income – others 160,441 99,783
$ 580,784 $ 492,360
(23) Other gains and losses
2018 2017
Net currency exchange gains $ 123,543 $ 13,664
Gains on disposal of investments - 523,111
Depreciation charges on
investment property ( 19,145) ( 19,144)
Other non-operating expenses ( 84,917) ( 82,460)
$ 19,481 $ 435,171
(24) Finance costs

2018 2017
Interest expense:
Bank borrowings $ 624,139 $ 607,606
Corporate bonds 92,859 69,863
Other 6 -
717,004 677,469
Less: Capitalisation of qualifying
assets ( 31,368) ( 42,772)
Finance costs $ 685,636 $ 634,697
~55~
361
(25)
(25)
(25)
(25)
(25)
(25)
(25)
(25)
(25)
(25)
Expenses
Expenses
Expenses
Expenses
Expenses
Expenses
Expenses
Expenses
Expenses
Expenses
Expenses
by
by
by
by
by
by
by
by
by
by
nature
nature
nature
nature
nature
nature
nature
nature
nature
nature
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
ended
ended
ended
ended
ended
ended
ended
ended
ended
endedDecember
December
December
December
December
December
December
December
December
December YearYear
Year
Year
Year
Year
Year
Year
Year
Year
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended December
December
December
December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
31,
31,
31,
2018
2018
2018
2018
2018
2018
2018
2018
2018
2018 31,
31,
31,
31,
31,
31,
31,
31,
31,
31,
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee benefit
benefit
benefit
benefit
benefit
benefit
benefit
benefit
benefit
benefitexpense
expense
expense
expense
expense
expense
expense
expense
expense
expense $$$$$$$$$$ 2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266$$$$$$$$$$ 2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
Depreciation
Depreciation
Depreciation
Depreciation
Depreciation
Depreciation
Depreciation
Depreciation
Depreciation
Depreciation
Depreciation charges
charges
charges
charges
charges
charges
charges
charges
charges
charges on
on
on
on
on
on
on
on
on
on
property,
property,
property,
property,
property,
property,
property,
property,
property,
property,plant
plant
plant
plant
plant
plant
plant
plant
plant
plant
and
and
and
and
and
and
and
and
and
and 2,032,961
2,032,961
2,032,961
2,032,961
2,032,961
2,032,961
2,032,961
2,032,961
2,032,961
2,032,961 1,752,639
1,752,639
1,752,639
1,752,639
1,752,639
1,752,639
1,752,639
1,752,639
1,752,639
1,752,639
equipment
equipment
equipment
equipment
equipment
equipment
equipment
equipment
equipment
equipment
equipment
Amortisation
Amortisation
Amortisation
Amortisation
Amortisation
Amortisation
Amortisation
Amortisation
Amortisation
Amortisation
Amortisation charges
charges
charges
charges
charges
charges
charges
charges
charges
charges on
on
on
on
on
on
on
on
on
on
intangible
intangible
intangible
intangible
intangible
intangible
intangible
intangible
intangible
intangibleassets
assets
assets
assets
assets
assets
assets
assets
assets
assets 20,572
20,572
20,572
20,572
20,572
20,572
20,572
20,572
20,572
20,572 19,591
19,591
19,591
19,591
19,591
19,591
19,591
19,591
19,591
19,591
Stevedorage
Stevedorage
Stevedorage
Stevedorage
Stevedorage
Stevedorage
Stevedorage
Stevedorage
Stevedorage
Stevedorage
Stevedorage 10,489,596
10,489,596
10,489,596
10,489,596
10,489,596
10,489,596
10,489,596
10,489,596
10,489,596
10,489,596 8,659,477
8,659,477
8,659,477
8,659,477
8,659,477
8,659,477
8,659,477
8,659,477
8,659,477
8,659,477
Inland
Inland
Inland
Inland
Inland
Inland
Inland
Inland
Inland
Inlandhaulage
haulage
haulage
haulage
haulage
haulage
haulage
haulage
haulage
haulage and
and
and
and
and
and
and
and
and
andcanal
canal
canal
canal
canal
canal
canal
canal
canal
canal
due
due
due
due
due
due
due
due
due
due 7,230,512
7,230,512
7,230,512
7,230,512
7,230,512
7,230,512
7,230,512
7,230,512
7,230,512
7,230,512 6,634,472
6,634,472
6,634,472
6,634,472
6,634,472
6,634,472
6,634,472
6,634,472
6,634,472
6,634,472
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker
Bunker fuel
fuel
fuel
fuel
fuel
fuel
fuel
fuel
fuel
fuel 5,780,146
5,780,146
5,780,146
5,780,146
5,780,146
5,780,146
5,780,146
5,780,146
5,780,146
5,780,146 3,599,512
3,599,512
3,599,512
3,599,512
3,599,512
3,599,512
3,599,512
3,599,512
3,599,512
3,599,512
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating lease
lease
lease
lease
lease
lease
lease
lease
lease
lease
payments
payments
payments
payments
payments
payments
payments
payments
payments
payments 3,078,682
3,078,682
3,078,682
3,078,682
3,078,682
3,078,682
3,078,682
3,078,682
3,078,682
3,078,682 3,071,399
3,071,399
3,071,399
3,071,399
3,071,399
3,071,399
3,071,399
3,071,399
3,071,399
3,071,399
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission 1,617,074
1,617,074
1,617,074
1,617,074
1,617,074
1,617,074
1,617,074
1,617,074
1,617,074
1,617,074 1,339,333
1,339,333
1,339,333
1,339,333
1,339,333
1,339,333
1,339,333
1,339,333
1,339,333
1,339,333
Port
Port
Port
Port
Port
Port
Port
Port
Port
Port
charge
charge
charge
charge
charge
charge
charge
charge
charge
charge
charge 1,289,220
1,289,220
1,289,220
1,289,220
1,289,220
1,289,220
1,289,220
1,289,220
1,289,220
1,289,220 1,049,814
1,049,814
1,049,814
1,049,814
1,049,814
1,049,814
1,049,814
1,049,814
1,049,814
1,049,814
Ship
Ship
Ship
Ship
Ship
Ship
Ship
Ship
Ship
Ship
supplies
supplies
supplies
supplies
supplies
supplies
supplies
supplies
supplies
supplies
supplies and
and
and
and
and
and
and
and
and
and
lubricant
lubricant
lubricant
lubricant
lubricant
lubricant
lubricant
lubricant
lubricant
lubricant oil
oil
oil
oil
oil
oil
oil
oil
oil
oil 276,155
276,155
276,155
276,155
276,155
276,155
276,155
276,155
276,155
276,155 215,764
215,764
215,764
215,764
215,764
215,764
215,764
215,764
215,764
215,764
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Professional service
service
service
service
service
service
service
service
service
service and
and
and
and
and
and
and
and
and
and
data
data
data
data
data
data
data
data
data
data
service
service
service
service
service
service
service
service
service
service
expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses 223,548
223,548
223,548
223,548
223,548
223,548
223,548
223,548
223,548
223,548 214,507
214,507
214,507
214,507
214,507
214,507
214,507
214,507
214,507
214,507
Other
Other
Other
Other
Other
Other
Other
Other
Other
Otheroperating
operating
operating
operating
operating
operating
operating
operating
operating
operating costs
costs
costs
costs
costs
costs
costs
costs
costs
costsand
and
and
and
and
and
and
and
and
and expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses 325,123
325,123
325,123
325,123
325,123
325,123
325,123
325,123
325,123
325,123 242,667
242,667
242,667
242,667
242,667
242,667
242,667
242,667
242,667
242,667
$$$$$$$$$$ 34,420,855
34,420,855$$$$$$$$$$
34,420,855
34,420,855
34,420,855
34,420,855
34,420,855
34,420,855
34,420,855
34,420,855 28,981,263
28,981,263
28,981,263
28,981,263
28,981,263
28,981,263
28,981,263
28,981,263
28,981,263
28,981,263
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
benefit
benefit
Employeebenefit
benefit
benefit
benefit
benefit
benefit
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expense
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expense
expense
expense
expense
expense
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
ended
ended
ended
ended
ended
ended
ended
ended
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December
December
December
December
December
December
December
December
December YearYear
YearYear
Year
Year
Year
Year
Year
Year
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended December
December
December
December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
31,
31,
31,
2018
2018
2018
2018
2018
2018
2018
2018
2018
2018 31,
31,
31,
31,
31,
31,
31,
31,
31,
31,
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
Wages
Wages
Wages
Wages
Wages
Wages
Wages
Wages
Wages
Wagesand
and
and
and
and
and
and
and
and
and salaries
salaries
salaries
salaries
salaries
salaries
salaries
salaries
salaries
salaries $$$$$$$$$$ 1,740,534
1,740,534
1,740,534
1,740,534
1,740,534
1,740,534
1,740,534
1,740,534
1,740,534$$$$$$$$$$
1,740,534 1,889,163
1,889,163
1,889,163
1,889,163
1,889,163
1,889,163
1,889,163
1,889,163
1,889,163
1,889,163
Labor
Labor
Labor
Labor
Labor
Labor
Labor
Labor
Labor
Labor
and
and
and
and
and
and
and
and
and
and health
health
health
health
health
health
health
health
health
health insurance
insurance
insurance
insurance
insurance
insurance
insurance
insurance
insurance
insurancefees
fees
fees
fees
fees
fees
fees
fees
fees
fees 131,854
131,854
131,854
131,854
131,854
131,854
131,854
131,854
131,854
131,854 112,773
112,773
112,773
112,773
112,773
112,773
112,773
112,773
112,773
112,773
Pension
Pension
Pension
Pension
Pension
Pension
Pension
Pension
Pension
Pension
costs
costs
costs
costs
costs
costs
costs
costs
costs
costs 83,441
83,441
83,441
83,441
83,441
83,441
83,441
83,441
83,441
83,441 84,627
84,627
84,627
84,627
84,627
84,627
84,627
84,627
84,627
84,627
Directors'
Directors'
Directors'
Directors'
Directors'
Directors'
Directors'
Directors'
Directors'
Directors'
Directors' remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration 9,303
9,303
9,303
9,303
9,303
9,303
9,303
9,303
9,303
9,303 20,091
20,091
20,091
20,091
20,091
20,091
20,091
20,091
20,091
20,091
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
personnel
personnel
personnel
personnel
personnel
personnel
personnel
personnel
personnel
personnel expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses
expenses 92,134
92,134
92,134
92,134
92,134
92,134
92,134
92,134
92,134
92,134 75,434
75,434
75,434
75,434
75,434
75,434
75,434
75,434
75,434
75,434
$$$$$$$$$$ 2,057,266
2,057,266$$$$$$$$$$
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266
2,057,266 2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
2,182,088
A.
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In
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ofof
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accumulated
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losses,
losses,
losses,
losses,
losses,
losses,
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shall
shall
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employees’
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remuneration.
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remuneration.
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remuneration.The
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ratio
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than0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
for
for
for
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employees’
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employees’
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compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensationand
and
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and
and
and
andshall
shall
shall
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shall
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be
be
be
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be
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behigher
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higher
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than
than
than
than
than
than
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2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
for
for
for
for
for
for
for
for
for
for
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
remuneration.
remuneration.
remuneration.
remuneration.
remuneration.
remuneration.
remuneration.
remuneration.
remuneration.
remuneration.
B.(a)For
B.(a)For
B.(a)For
B.(a)For
B.(a)For
B.(a)For
B.(a)For
B.(a)For
B.(a)For
B.(a)For
the
thethe
the
the
the
the
the
the
theyear
year
year
year
year
year
year
year
year
yearended
ended
ended
ended
ended
ended
ended
ended
ended
endedDecember
December
December
December
December
December
December
December
December
December31,
31,
31,
31,
31,
31,
31,
31,
31,
31,
2018,
2018,
2018,
2018,
2018,
2018,
2018,
2018,
2018,
2018,
employees’
employees’
employees’
employees’
employees’
employees’
employees’
employees’
employees’
employees’ compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
and
andand
and
and
and
and
and
and
and directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
was
was
was
was
was
was
was
was
was
was accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
at
at
at
atat
at
at
at $2,560
$2,560
at
$2,560
at
$2,560
$2,560
$2,560
$2,560
$2,560
$2,560
$2,560
and
andand
and
and
and
and
and
and
and
$0,
$0,$0,
$0,
$0,
$0,
$0,
$0,
$0,
$0, respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
The
The
The
The
The
The
The
The
The
The aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned amounts
amounts
amounts
amounts
amounts
amounts
amounts
amounts
amounts
amounts
were
were
were
were
were
were
were
were
were
were
recognised
recognised
recognised
recognised
recognised
recognised
recognised
recognised
recognised
recognised
in
in
in
in
in
in
in
in
in
in
salary
salary
salary
salary
salary
salary
salary
salary
salary
salary
salary expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
B
B
BB
B
BB (b)The
(b)The
B
(b)The
B
(b)The
B
(b)The
(b)The
(b)The
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(b)The employees’!compensation
employees’!compensation
and
and
and
and
and
and
and
and
and
and
directors’!remuneration
directors’!remunerationwere
were
were
were
were
were
were
were
were
were estimated
estimated
estimated
estimated
estimated
estimated
estimated
estimated
estimated
estimated
and
and
and
and
and
and
and
and
and
and
accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
based
based
based
based
based
based
based
based
based
based
on
on
on
on
on
on
on
on
on
on0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
and
andand
and
and
and
and
and
and
and
0%
0%
0%0%
0%
0%
0%
0%
0%
0%
of
of
of
ofof
of
of
of
of distributable
distributable
distributable
of
distributable
distributable
distributable
distributable
distributable
distributable
distributable
profit
profit
profit
profit
profit
profit
profit
profit
profit
profit
of
of
of
of
of
of
of
of
of
current
current
of
current
current
current
current
current
current
current
current
year
year
year
year
year
year
year
year
year
year
for
for
for
for
for
for
for
for
for
for
the
the
the
the
the
the
the
the
the
the year
year
year
year
year
year
year
year
year
year ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
December
December
December
December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
31,
31,
31,
2018.
2018.
2018.
2018.
2018.
2018.
2018.
2018.
2018.
2018.
B
B
BB
B
BB
(c)
B
(c)
B
(c)
B
(c)
(c)
(c)
(c)
(c)
(c) For
(c)For
For
For
For
For
For
For
For
For
thethe
the
the
the
the
the
the
the
the year
year
year
year
year
year
year
year
year
year ended
ended
ended
ended
ended
ended
ended
ended
ended
ended December
December
December
December
December
December
December
December
December
December31,
31,
31,
31,
31,
31,
31,
31,
31,
31,
2017,
2017,
2017,
2017,
2017,
2017,
2017,
2017,
2017,
2017,
employees’
employees’
employees’
employees’
employees’
employees’
employees’
employees’
employees’
employees’ compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
compensation
and
and
and
and
and
and
and
and
and
and
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
directors’
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remuneration
remunerationwere
were
were
were
were
were
were
were
were
were accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
accrued
at
at
atat
at
at
at $36,322
$36,322
at
$36,322
at
$36,322
at
$36,322
$36,322
$36,322
$36,322
$36,322
$36,322
and
and
and
and
and
and
and
and
and
and
$10,207,
$10,207,
$10,207,
$10,207,
$10,207,
$10,207,
$10,207,
$10,207,
$10,207,
$10,207, respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
respectively.
The
TheThe
The
The
The
The
The
The
The aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
aforementioned
amounts
amounts
amounts
amounts
amounts
amounts
amounts
amounts
amounts
amounts
was
was
was
was
was
was
was
was
was
was recognised
recognised
recognised
recognised
recognised
recognised
recognised
recognised
recognised
recognised
in
in
in
inin
in
inin
salary
in
salary
insalary
salary
salary
salary
salary
salary
salary
salary expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
expenses.
~56~
~56~
~56~
~56~
~56~
~56~
~56~
~56~
~56~
~56~
362
2018 Annual Report
Employees’ compensation and directors’ remuneration of 2017 as resolved by he Board of

Directors were in agreement with those amounts recognised in the profit or loss of 2017.
Information about employees’ compensation and directors’ remuneration of the Company as
resolved at the meeting of Board of Directors will be posted in the “Market Observation Post
System” at the website of the Taiwan Stock Exchange.
(27) Income tax
A.Income tax expense
(a)Components of income tax expense:
31, 2018 31, 2017
Current tax:
Current tax on profits for the year $ - $ -
Alternative Minimum Tax - 31,399
Prior year income tax overestimation ( 4,738) -
Total current tax 279,235 31,399
Deferred tax:
Origination and reversal of
temporary differences ( 110,609) 181,338
Total deferred tax ( 63,650) 181,338
Income tax expense $ 215,585 $ 212,737
(b)The income tax (charge)/credit relating to components of other comprehensive income is as

follows:
31, 2018 31, 2017
Changes in fair value of available
($ 6,699) $ 239
-for-sale financial assets
Currency translation differences ( 33) 2,295
Remeasurement of defined
benefit obligations 9,504 13,872
Share of other comprehensive
income of associates 18,392 ( 5,898)
$ 26,055 $ 10,508
~57~
363
(c)The income tax charged/(credited) to equity during the period is as follows:

31, 2018 31, 2017
Reduction in capital surplus caused
based on the shareholding ratio ($ 115) ($ 95)
Reduction in retained earnings caused
by recognition of foreign not based
on the shareholding ratio 146 -
Effects of retrospective
application 182 -
Impact of change in tax rate 95 -
$ 308 ($ 95)
B.Reconciliation between income tax expense and accounting profit

31, 2018 31, 2017
Tax calculated based on profit
$ 101,901 $ 1,227,044
before tax and statutory tax rate
Expenses disallowed by tax regulation 18,293 10,919
Tax exempt income by tax regulation ( 299,273) ( 1,026,390)
Prior year income tax overestimation ( 4,738) -
Effect from Alternative Minimum Tax - 31,399
Effect from investment tax credits 42,068 ( 42,068)
Effect from tax losses 26,647 7,984
Change in assessment of realisation of
( 245) -
deferred tax assets
Prior year income tax (over)
underestimation - 3,849
Income tax expense $ 215,585 $ 212,737
~58~
364
2018 Annual Report
C.Amounts of deferred tax assets or liabilities as a result of temporary differences, loss carryforward
and investment tax credits are as follows:
2018
Recognised
Recognised in other
in profit comprehensive Recognised
January 1 or loss income in equity December 31
炼Deferred tax assets:
Bad debts expense $ 13,546 $ 2,689 $ - $ 182 $ 16,417
Loss on valuation of financial
assets 1,979 - ( 1,979) - -
Deferred profit 13,918 670 - - 14,588
Unrealized expense 11,364 2,974 - - 14,338
Unrealized exchange loss 39,452 ( 8,306) - - 31,146
Pension expense 197,241 ( 1,096) - - 196,145
Actuarial losses/(gains) 49,805 - 18,294 - 68,099
Investment tax credits 42,068 ( 42,068) - - -
Net operating loss carryforward 192,612 153,005 - - 345,617
561,985 107,868 16,315 182 686,350
炼Deferred tax liabilities:
Gain on valuation of financial ($ 4,371)
assets $ - $ - ($ 4,371) $ -
Equity-accounted
investment income ( 758,411) ( 44,426) 14,111 126 ($ 788,600)
Gain on bargain purchase ( 208) 208 - - -
( 758,619) ( 44,218) 9,740 126 ( 792,971)
($ 196,634) $ 63,650 $ 26,055 $ 308 ($ 106,621)
~59~
365
2017
Recognised
Recognised in other
in profit comprehensive Recognised
January 1 or loss income in equity December 31
炼Deferred tax assets:
Bad debts expense $ 13,060 $ 486 $ - $ - $ 13,546
Loss on valuation of financial
assets 1,740 - 239 - 1,979
Deferred profit 16,708 ( 2,790) - - 13,918
Unrealized expense 11,531 ( 167) - - 11,364
Unrealized exchange loss 49,343 ( 9,891) - - 39,452
Pension expense 215,644 ( 18,403) - - 197,241
Actuarial losses/(gains) 35,933 - 13,872 - 49,805
Investment tax credits - 42,068 - - 42,068
Net operating loss carryforward 176,711 15,901 - - 192,612
520,670 27,204 14,111 - 561,985
炼Deferred tax liabilities:
Equity-accounted
investment income ($ 546,379) ($ 208,334) ($ 3,603) ($ 95) ($ 758,411)
Gain on bargain purchase - ( 208) - - ( 208)
( 546,379) ( 208,542) ( 3,603) ( 95) ( 758,619)
($ 25,709) ($ 181,338) $ 10,508 ($ 95) ($ 196,634)
D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred
tax assets are as follows:
December 31, 2018: None.
December 31, 2017
Unused tax Unrecognised
Qualifying items credits deferred tax assets Expiry year
Investments in emerging
important strategic industries $ 42,068 $ - 2020
~60~
366
2018 Annual Report
E.Expiration
E.Expiration
E.Expiration
E.Expiration
E.Expirationdates
dates
dates
dates
datesof
of
of
of
ofunused
unused
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December
December
December
December
December31, 31,
31,
31, 2018
31,2018
2018
2018
2018
Unused
Unused
Unused
Unused
Unusedtaxtax
tax
tax
tax Unrecognised
Unrecognised
Unrecognised
Unrecognised
Unrecognised Final
Final
Final
Final
Finalyear
year
year
year
year
Year
Year
Year
Year
Yearincurred
incurred
incurred
incurred Amount
incurred Amount
Amount
Amount filed
Amountfiled
filed
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filed credits
credits
credits
credits
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deferred
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deferred
deferredtax
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tax
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taxcredits
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creditsare
are
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are
aredue
due
due
due
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2018
2018
2018
2018
2018 $$$$$ 671,047
671,047
671,047
671,047
671,047 $$$$$ 671,047
671,047
671,047
671,047
671,047 $$$$$ ----- 2028
2028
2028
2028
2028
2017
2017
2017
2017
2017 40,204
40,204
40,204
40,204
40,204 40,204
40,204
40,204
40,204
40,204 ----- 2027
2027
2027
2027
2027
2016
2016
2016
2016
2016 747,045
747,045
747,045
747,045
747,045 747,045
747,045
747,045
747,045
747,045 ----- 2026
2026
2026
2026
2026
2015
2015
2015
2015
2015 269,787
269,787
269,787
269,787
269,787 269,787
269,787
269,787
269,787
269,787 ----- 2025
2025
2025
2025
2025
$$$$$ 1,728,083
1,728,083
1,728,083
1,728,083
1,728,083 $$$$$ 1,728,083
1,728,083 $$$$$
1,728,083
1,728,083
1,728,083 -----
December
December
December
December31,
December 31,
31,
31,2017
31, 2017
2017
2017
2017
Unused
Unused
Unused
Unusedtax
Unused tax
tax
tax
tax Unrecognised
Unrecognised
Unrecognised
Unrecognised
Unrecognised Final
Final
Final
Finalyear
Finalyear
year
year
year
Year
Year
Year
Year incurred Amount
Yearincurred
incurred
incurred
incurred Amount
Amount
Amountfiled
Amount filed
filed
filed
filed credits
credits
credits
credits
credits deferred
deferred
deferred
deferredtax
deferred tax
tax
taxassets
taxassets
assets
assets tax
assets tax
tax
taxcredits
taxcredits
credits
creditsare
credits are
are
aredue
are due
due
due
due
2017
2017
2017
2017
2017 $$$$$ 116,177
116,177
116,177
116,177
116,177 $$$$$ 116,177
116,177
116,177
116,177
116,177 $$$$$ ----- 2027
2027
2027
2027
2027
2016
2016
2016
2016
2016 747,045
747,045
747,045
747,045
747,045 747,045
747,045
747,045
747,045
747,045 ----- 2026
2026
2026
2026
2026
2015
2015
2015
2015
2015 269,787
269,787
269,787
269,787
269,787 269,787
269,787
269,787
269,787
269,787 ----- 2025
2025
2025
2025
2025
$$$$$ 1,133,009
1,133,009
1,133,009
1,133,009
1,133,009 $$$$$ 1,133,009
1,133,009
1,133,009
1,133,009 $$$$$
1,133,009 -----
F.The
F.The
F.The
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~61~
~61~
~61~
~61~
~61~
367
(28) Earnings (loss) per share

Weighted average
number of ordinary
Amount after tax (shares in thousands) (in dollars)
Profit attributable to
ordinary shareholders of
the parent $ 293,919 4,240,919 $ 0.07
the parent $ 293,919 4,240,919
shares
Employees' compensation - 215
parent plus assumed
conversion of all
shares $ 293,919 4,241,134 $ 0.07
~62~
368
2018 Annual Report

Weighted average
number of ordinary
Amount after tax (shares in thousands) (in dollars)
the parent $ 7,005,171 3,726,809 $ 1.88
the parent $ 7,005,171 3,726,809
shares
Employees' compensation - 3,375
parent plus assumed
conversion of all
shares $ 7,005,171 3,730,184 $ 1.88
(29) Supplemental cash flow information

Investing activities with partial cash payments
A. Property, plant and equipment
31, 2018 31, 2017
Purchase of property, plant and
equipment $ 1,414,270 $ 1,053,956
on equipment 8,429 6,167
on equipment ( 4,274) ( 8,429)
Cash paid during the year $ 1,418,425 $ 1,051,694
~63~
369
B.Prepayment for equipment (recorded as other non-current assets)

31, 2018 31, 2017
Purchase of prepayments for equipment $ 6,269,586 $ 2,359,500
on prepayments for equipment 38,001 123,685
on prepayments for equipment ( 154) ( 38,001)
Capitalisation of qualifying assets ( 31,368) ( 42,773)
Cash paid during the year $ 6,276,065 $ 2,402,411
(30) Changes in liabilities from financing activities

Long-term borrowings
At January 1, 2018 $ 39,690,592
Changes in cash flow from financing activities 397,389
Impact of changes in foreign exchange rate ( 2,790)
At December 31, 2018 $ 40,085,191
7. RELATED PARTY TRANSACTIONS
(1) Names of the related parties and their relationship with the Company
Names of related parties Relationship with the Company
Taiwan Terminal Services Co., Ltd. (TTSC) Subsidiary
Peony Investment S.A. (Peony) Subsidiary
Everport Terminal Services Inc. (ETS) Subsidiary
Evergreen Marine (Hong Kong) Ltd. (EGH) (A subsidiary since December 18, 2017)
Evergreen Marine Corp. (Malaysia) SDN BHD (EGM) Indirect subsidiary
Kingtrans International Logistics (Tianjin) Co., Ltd. (KTIL) Indirect subsidiary
Clove Holding Ltd. (CLOVE) Indirect subsidiary
PT. Multi Bina Transport (MBT) Indirect subsidiary
PT. Multi Bina Pura International (MBPI) Indirect subsidiary
Greencompass Marine S.A. (GMS) Indirect subsidiary

Evergreen Heavy Industrial Co., (Malaysia) Berhad.
Indirect subsidiary
(EHIC(M))
Evergreen Marine (UK) Limited (EMU) Indirect subsidiary
Evergreen Shipping Agency (Europe) GmbH (EEU) Indirect subsidiary (Note)
Evergreen Shipping Agency (Switzerland) S.A. (EGDL) Indirect subsidiary (Note)
Evergreen Shipping Agency (Netherlands) B.V. (EGN) Indirect subsidiary (Note)
~64~
370
2018 Annual Report
Evergreen Shipping Agency (Poland) SP.ZO.O (EGD-WWX) Indirect subsidiary (Note)
Evergreen Shipping Agency France S.A. (EGF) Indirect subsidiary (Note)
Evergreen Shipping Agency (Austria) GmbH (EGDV) Indirect subsidiary (Note)
Evergreen Argentina S.A. (EGB) Indirect subsidiary
Evergreen Shipping (Spain) S.L. (EES) Indirect subsidiary
Evergreen Shipping Agency (Italy) S.p.A. (EIT) Indirect subsidiary
Island Equipment LLC. (Island) Indirect subsidiary (Note 1)
Armand Investment (Netherlands) N.V. (Armand N.V.) Indirect subsidiary
Evergreen Shipping Agency (Australia) Pty. Ltd. (EMA) Indirect subsidiary
Evergreen Shipping Agency (Thailand) Co., Ltd. (EGT) Indirect subsidiary
Evergreen Shipping Agency (India) Pvt. Ltd. (EGI) Indirect subsidiary
Evergreen Shipping Agency (Russia) Ltd. (ERU) Indirect subsidiary
Evergreen Agency (South Africa) (Pty) Ltd. (ESA) Indirect subsidiary
Evergreen Shipping Agency (Korea) Corporation (EGK) Indirect subsidiary
Armand Estate B.V. (Armand B.V.) Indirect subsidiary
Whitney Equipment LLC. (Whitney) Indirect subsidiary
Hemlock Equipment LLC. (Hemlock) Indirect subsidiary (Note 1)
Evergreen Shipping Agency (Vietnam) Corp. (EGV) (A subsidiary since January 1, 2018)
Evergreen Shipping Services (Cambodia) Co., Ltd. (EKH) Indirect subsidiary
Evergreen Shipping Agency (Chile) SPA. (ECL) Indirect subsidiary
Evergreen Shipping Agency (PERU) S.A.C. (EPE) Indirect subsidiary
Evergreen Shipping Agency (Colombia) S.A.S. (ECO) Indirect subsidiary
Evergreen Shipping Agency Mexico S.A. DE C.V. (EMX) Indirect subsidiary
Master International Shipping Agency Co., Ltd. (MAC) Indirect subsidiary

Associate
(EITC)
EVA Airways Corporation (EVA) Associate
Evergreen Security Corporation (ESC) Associate
Charng Yang Development Co., Ltd. (CYD) Associate
Taipei Port Container Terminal Corporation (TPCT) Associate
Ningbo Victory Container Co., Ltd. (NVC) Associate
Qingdao Evergreen C&T Co., Ltd. (QECT) Associate
~65~
371
Evergreen Marine (Latin America), S.A. (ELA) Associate
Green Peninsula Agencies SDN. BHD. (GPA) Associate
Luanta Investment (Netherlands) N.V. (Luanta) Associate
Balsam Investment (Netherlands) N.V. (Balsam) Associate
Italia Marittima S.p.A. (ITS) Associate
Colon Container Terminal S.A. (CCT) Associate
PT. Evergreen Shipping Agency Indonesia (EMI) Associate
Evergreen Shipping Agency Co. (U.A.E) LLC (UAE) Associate
Evergreen International Corporation (EIC) Other related party
Evergreen Airline Services Corporation (EGAS) Other related party
Chang Yung-Fa Charity Foundation (CYFC) Other related party
Chang Yung-Fa Foundation (CYFF) Other related party
Ever Accord Construction Corporation (EAC) Other related party
Evergreen Aviation Technologies Corporation (EGAT) Other related party
Evergreen Sky Catering Corporation (EGSC) Other related party
Evergreen Air Cargo Services Corporation (EGAC) Other related party
Evergreen Aviation Precision Corporation (EGAP) Other related party
Evergreen International S.A. (EIS) Other related party
Evergreen Marine (Singapore) Pte. Ltd. (EMS) Other related party
Gaining Enterprise S.A. (GESA) Other related party
Evergreen Insurance Company Ltd. (EINS) Other related party
Evergreen Shipping Agency (America) Corporation (EGA) Other related party
Evergreen Shipping Agency (Japan) Corporation (EGJ) Other related party
Evergreen Shipping Agency Philippines Corporation (EGP) Other related party
Evergreen International Muanmar Co., Ltd. (EIM) Other related party
Chestnut Estate B.V. (Chestnut) Other related party

Note: Indirect subsidiary of Evergreen Shipping Agency (Deutschland) GmbH (EGD), reorganization of
EGDL, EGN, EGD-WWX, EGF amd EDGV, was renamed Evergreen Shipping Agency (Europe)
GmbH (EEU).
Note 1: On December 20, 2017, shareholders of the subsidiary, ETS, resolved to make an equity transaction
that shareholders of ETS merge its subsidiary, Island, and its second-tier subsidiaries, Hemlock
and Whitney, on January 1, 2018.
~66~
372
2018 Annual Report
(2) Significant related party transactions and balances

A.Sales of services:
2018 2017
Sales of services:
Subsidiaries $ 2,343,257 $ 1,955,857
Associates 501,188 594,746
$ 5,720,142 $ 5,418,423
The business terms on which the company transacts with related parties are of no difference from
those with non-related parties.
B.Purchases of services:
2018 2017
Purchases of services:
Subsidiaries $ 5,048,484 $ 4,181,646
Associates 967,256 1,160,689
$ 8,568,622 $ 7,692,638
Services are purchased from subsidiaries, associates and other related parties under general
conditions.
C. Receivables from related parties:
Accounts receivable:
Subsidiaries $ 19,082 $ 41,619
Associates 31,688 24,894
$ 99,623 $ 213,443
Other receivables:
Subsidiaries
炼Hemlock $ - $ 95,333
炼Others 552 764
Associates 627 2,024
炼EIC 179,593 162,431
炼Others 165 236
$ 180,937 $ 260,788
~67~
373
The
The receivables
receivables from
from related
related parties
parties arise
arise mainly
mainly from
from sale
sale transactions.
transactions. The
The receivables
receivables are
are
unsecured
unsecuredin
innature
natureand
andbear
bearno
nointerest.
interest.There
Thereare
areno
noprovisions
provisionsagainst
againstreceivables
receivablesfrom
fromrelated
related
parties.
parties.
D.
D.Payables
Payablesto
torelated
relatedparties:
parties:
December
December31,
31,2018
2018 December
December31,
31,2017
2017
Accounts
Accountspayable:
payable:
Subsidiaries
Subsidiaries $$ 168,691
168,691 $$ 107,203
107,203
Associates
Associates 22,679
22,679 13,230
13,230
Other
Otherrelated
relatedparties
parties 2,461
2,461 4,462
4,462
$$ 193,831 $$
193,831 124,895
124,895
December31,
December 31,2018
2018 December
December31,
31,2017
2017
Other
Otherpayables:
payables:
Subsidiaries
Subsidiaries $$ 28
28 $$ --
Associates
Associates 4,224
4,224 3,251
3,251
Other
Otherrelated
relatedparties
parties 2,431
2,431 11,667
11,667
$$ 6,683
6,683 $$ 14,918
14,918
The
The payables
payables to
to related
related parties
parties arise
arise mainly
mainly from
from purchase
purchase transactions.
transactions. The
The payables
payables bear
bear no
no
interest.
interest.
E.
E.Agency
Agencyaccounts:
accounts:
(a)Debit
(a)Debitbalance
balanceofofagency
agencyaccounts
accounts
December
December31,
31,2018
2018 December
December31,
31,2017
2017
Subsidiaries
Subsidiaries
炼炼EGI
EGI $$ 72,695
72,695 $$ 5,116
5,116
炼炼MAC
MAC 44,944
44,944 --
炼炼Others
Others 16,060
16,060 581
581
$$ 133,699
133,699 $$ 5,697
5,697
(b)Credit
(b)Creditbalance
balanceof
ofagency
agencyaccounts
accounts
December
December31,
31,2018
2018 December
December31,
31,2017
2017
Subsidiaries
Subsidiaries $$ 99,533
99,533 $$ 84,761
84,761
Associates
Associates 104,353
104,353 105,552
105,552
Other
Otherrelated
relatedparties
parties
炼EGA
炼EGA 441,655
441,655 174,272
174,272
炼EGJ
炼EGJ 185,565
185,565 139,998
139,998
炼Others
炼Others 90,464
90,464 71,198
71,198
$$ 921,570
921,570 $$ 575,781
575,781
~68~
~68~
374
2018 Annual Report
F. Shipowner’s accounts:
(a)Debit balance of shipowner’s accounts
Subsidiaries
炼EMU $ 675,749 $ 595,393
炼GMS 114,568 -
Associates
炼ITS 279,431 -
炼EIS 180,684 328,897
炼GESA 20,409 25,028
炼EMS - 16,246
$ 1,270,841 $ 965,564
(b)Credit balance of shipowner’s accounts

Subsidiaries
炼GMS $ - $ 362,323
炼EGH 613,053 301,631
Associates
炼ITS - 700,046
炼EMS 996,627 -
$ 1,609,680 $ 1,364,000
G. Property transactions:
Acquisition of property, plant and equipment:
2018 2017
Subsidiaries $ - $ 89
Associates - 4,350
Other related parties - 61
$ - $ 4,500
H.Endorsements and guarantees provided to related parties:
Subsidiaries $ 100,417,641 $ 66,554,130
Associates 3,143,008 3,035,391
$ 103,560,649 $ 69,589,521
~69~
375
I. On August 11, 2017, the Board of Directors resolved to have the Company acquire 79% of the
shares of EGH from other related party Evergreen International S.A. The acquisition date was
December 18, 2017, and the transaction amount was $6,371,572 (approx. USD $209,350).
(3) Key management compensation

2018 2017
Salaries and other short-term
employee benefits $ 47,772 $ 105,218
Post-employment benefits 3,138 3,909
$ 50,910 $ 109,127
8. PLEDGED ASSETS
The Company’s assets pledged as collateral are as follows:
Book value
Pledged assets December 31, 2018 December 31, 2017 Purpose
Other financial assets
- Pledged time deposits $ 121,632 $ 117,725 Guarantee
-Land 514,312 514,312 Long-term loan
-Buildings 181,001 188,363 #
-Ships 28,052,733 19,151,033 #
-Loading and unloading equipment 1,094,929 1,159,312 #
Investment property
-Land 1,285,781 1,285,781 Long-term loan
-Buildings 452,502 470,909 #
$ 31,702,890 $ 22,887,435
9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS
(1) Contingencies
None.
(2) Commitments
A. As of December 31, 2018, the Company had delegated DBS Bank to issue Standby Letter of Credit
amounting to USD 5,000 thousand.
B. A former stockholder of the Company sold some of its shares through issuance of global depository
receipts (GDRs). The issuance of GDRs was approved by the SEC on June 19, 1996 as per Letter
(85) Tai-Cai-Zheng (1) No. 35410. On August 2, 1996, the GDRs were approved by the UK
governing authority to be listed on the London Stock Exchange and were issued in Asia, Europe
and the US. The total amount of the issuance of GDRs was USD 115,000 thousand. The initial
number of units issued was 5,449,592, representing 54,495,920 shares of the Company’s common
~70~
376
2018 Annual Report
stock at $50.50 (in dollars) per share, and the number of supplementary units issued was 817,438.
In total, the number of units issued was 6,267,030, representing 62,670,300 shares of the
Company’s common stock at $50.50 (in dollars) per share, and the GDRs issued amounted to
USD 115,000 thousand. Another 2,116,352 units, representing 21,163,604 shares of the
Company’s common stock, were issued during the period from 1997 to December 31, 2018. As
of December 31, 2018, 8,301,902 units were redeemed and 81,480 units were outstanding,
representing 814,889 shares of the Company’s common stock.
C. As of December 31, 2018, the long-term and medium-term loan facilities granted by the financial
institutions with the resolution from the Board of Directors to finance the Company’s purchase of
new ships and general working capital requirement amounted to $41,488,820 and the unutilized
credits was $1,390,212.
D. Operating lease
The estimated amount of charter expense in the following years under long-term contracts is set
forth as follows:
December 31, 2018
Within 1 year $ 4,437,551
1~5 years 15,675,940
Over 5 years 20,420,940
$ 40,534,431
E. As of December 31, 2018, the amount of guaranteed notes issued by the Company for loans
borrowed was $75,190,874.
F. To meet operational needs, the Company signed the shipbuilding contracts with Taiwan
Shipbuilding Co., Ltd. and Imabari Shipbuilding Co., Ltd. As of December 31, 2018, the total
price of the contracts, wherein the vessels have not yet been delivered, amounted to USD 76,160
thousand, USD53,312 thousand of which remain unpaid.
G. In response to international regulations on sulfur content in shipping fuel, the Company entered
into sulfur emission abatement equipment purchase contracts with Wartsila Finland Oy and Alfa
Laval Nijmegen B.V.. As of December 31, 2018, the total contract prices are USD 19,075 and
EUR 6,915, respectively, and USD 16,955 and EUR 3,043 remain unpaid. The Company signed
following installation contracts with Huarun Dadong Dockyard Co., Ltd.. As of December 31,
2018, the total price of the contracts amounted to USD 33,040, USD 32,020 of which remain
unpaid.
10. SIGNIFICANT DISASTER LOSS
None.
11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
On March 22, 2019, the proposal to appropriate the accumulated earnings was approved by the Board
of Directors. Please refer to Note 6(18) for the details.
~71~
377
12.
12.
12.OTHERS
OTHERS
OTHERS
(1)
(1)Capital
(1) Capitalrisk
Capital riskmanagement
risk management
management
The
TheCompany’s
The Company’s objectives
Company’s objectiveswhen
objectives when managing
when managing capital
managing capitalare
capital are to
are totosafeguard
safeguard the
safeguard the Company’s
the Company’sability
Company’s abilityto
ability toto
continue
continueas
continue asaaagoing
as goingconcern
going concernin
concern ininorder
orderto
order totoprovide
providereturns
provide returnsfor
returns forshareholders
for shareholdersand
shareholders andto
and totomaintain
maintainan
maintain anoptimal
an optimal
optimal
capital
capitalstructure
capital structureto
structure totoreduce
reducethe
reduce thecost
the costof
cost ofcapital.
of capital.In
capital. Inorder
In orderto
order totomaintain
maintainor
maintain oradjust
or adjustthe
adjust thecapital
the capitalstructure,
capital structure,the
structure, the
the
Company
Companymay
Company mayadjust
may adjustthe
adjust theamount
the amountof
amount ofdividends
of dividendspaid
dividends paidto
paid totoshareholders,
shareholders,return
shareholders, returncapital
return capitalto
capital totoshareholders
shareholders
shareholders
and
andissue
and issuenew
issue newshares
new sharesto
shares totomaintain
maintainan
maintain anoptimal
an optimalcapital.
optimal capital.
capital.
(2)
(2)Financial
(2) Financialinstruments
Financial instruments
instruments
A.
A. Financial
A. Financialinstruments
Financial instrumentsby
instruments bycategory
by category
category
December
December
December31,
31,
31,2018
2018
2018 December
December
December31,
31,
31,2017
2017
2017
Financial
Financialassets
Financial assets
assets
Financial
Financialassets
Financial assets
assetsat
atatfair
fair
fairvalue
value
valuethrough
through
throughother
other
other
comprehensive
comprehensiveincome
income
Designation
Designationof
Designation ofofequity
equity
equityinstrument
instrument
instrument $$$ 1,021,582
1,021,582 $$$
1,021,582 ---
Available-for-sale
Available-for-salefinancial
Available-for-sale financial
financialassets
assets
assets --- 1,297,929
1,297,929
1,297,929
Held-to-maturity
Held-to-maturityfinancial
Held-to-maturity financial
financialassets
assets
assets --- 100,000
100,000
100,000
Financial
Financialassets
Financial assets
assetsat
atatamortised
amortised
amortisedcost
cost
cost
Cash
Cashand
Cash and
andcash
cash
cashequivalents
equivalents
equivalents 21,672,457
21,672,457
21,672,457 23,043,513
23,043,513
23,043,513
Notes
Notesreceivables
Notes receivables
receivables 43
43
43 72
72
72
Accounts
Accountsreceivables
Accounts receivables
receivables 3,358,430
3,358,430
3,358,430 3,074,722
3,074,722
3,074,722
Other
Otheraccounts
Other accounts
accountsreceivables
receivables
receivables 386,167
386,167
386,167 618,853
618,853
618,853
Financial
Financialassets
Financial assets
assetsat atatamortised
amortised
amortisedcost
cost
cost 100,000
100,000
100,000 ---
Guarantee
Guaranteedeposits
Guarantee deposits
depositspaid paid
paid 19,261
19,261
19,261 18,415
18,415
18,415
Other
Otherfinancial
Other financial
financialassets
assets
assets 121,632
121,632
121,632 117,725
117,725
117,725
$$$ 26,679,572
26,679,572 $$$
26,679,572 28,271,229
28,271,229
28,271,229
Financial
Financialliabilities
liabilities
Financial
liabilitiesat
atatamortised
amortised
amortisedcost
cost
cost
Accounts
Accountspayable
Accounts payable
payable $$$ 4,577,517
4,577,517 $$$
4,577,517 3,594,958
3,594,958
3,594,958
Other
Otheraccounts
Other accounts
accountspayable
payable
payable 935,319
935,319
935,319 584,602
584,602
584,602
Bonds
Bondspayable
Bonds payable
payable(including
(including
(includingcurrent
current
currentportion)
portion)
portion) 10,000,000
10,000,000
10,000,000 8,000,000
8,000,000
8,000,000
Long-term
Long-termborrowings(including
Long-term borrowings(including
borrowings(includingcurrentcurrent
current
portion)
portion)
portion) 40,085,192
40,085,192
40,085,192 39,690,592
39,690,592
39,690,592
Guarantee
Guaranteedeposits
Guarantee deposits
depositsreceived
received
received 12,370
12,370
12,370 12,053
12,053
12,053
$$$ 55,610,398
55,610,398 $$$
55,610,398 51,882,205
51,882,205
51,882,205
B.
B.Financial
B. Financialrisk
Financial riskmanagement
risk managementpolicies
management policies
policies
(a)The
(a)TheCompany’s
(a)The Company’sactivities
Company’s activitiesexpose
activities exposeitititto
expose totoaaavariety
varietyof
variety offinancial
of financialrisks:
financial risks:market
risks: marketrisk
market risk(including
risk (includingforeign
(including foreign
foreign
exchange
exchangerisk,
exchange risk,interest
risk, interestrate
interest raterisk
rate riskand
risk andprice
and pricerisk),
price risk),credit
risk), creditrisk
credit riskand
risk andliquidity
and liquidityrisk.
liquidity risk.The
risk. TheCompany’s
The Company’s
Company’s
overall
overallrisk
overall riskmanagement
risk managementprogramme
management programmefocuses
programme focuseson
focuses onthe
on theunpredictability
the unpredictabilityof
unpredictability offinancial
of financialmarkets
financial marketsand
markets and
and
seeks
seeksto
seeks totominimize
minimizepotential
minimize potentialadverse
potential adverseeffects
adverse effectson
effects onthe
on theCompany’s
the Company’sfinancial
Company’s financialposition
financial positionand
position andfinancial
and financial
financial
performance.
performance.
performance.
~72~
~72~
~72~
378
2018 Annual Report
(b)Risk
(b)Risk
(b)Risk
(b)Risk management
management
management
management is isis
is carried
carried
carried
carried out
out
out
out by
by
by
by the
the
the
the Company’s
Company’s
Company’s
Company’s Finance
Finance
Finance
Finance Department
Department
Department
Department under
under
under
under policies
policies
policies
policies
approved
approved
approved
approvedby by
by
bythe
the
the
theBoard
Board
Board
Boardof of
of
ofDirectors.
Directors.
Directors.
Directors.TheThe
The
TheCompany’s
Company’s
Company’s
Company’sFinance
Finance
Finance
FinanceDepartment
Department
Department
Departmentidentifies,
identifies,
identifies,
identifies,evaluates
evaluates
evaluates
evaluates
and
and
and
andhedges
hedges
hedges
hedgesfinancial
financial
financial
financialrisks risks
risks
risksin
in
in
inclose
close
close
closeco-operation
co-operation
co-operation
co-operationwith with
with
withthe
the
the
theCompany’s
Company’s
Company’s
Company’sOperating
Operating
Operating
OperatingDepartment.
Department.
Department.
Department.
The
The
The
TheBoard
Board
Board
Boardof of
of
ofDirectors
Directors
Directors
Directorsprovides
provides
provides
provideswritten
written
written
writtenprinciples
principles
principles
principlesfor
for
for
foroverall
overall
overall
overallrisk
risk
risk
riskmanagement,
management,
management,
management,as as
as
aswell
well
well
wellas
as
as
as
written
written
written
writtenpolicies
policies
policies
policiescovering
covering
covering
coveringspecific
specific
specific
specificareas
areas
areas
areasandand
and
andmatters,
matters,
matters,
matters,such
such
such
suchas
as
as
asforeign
foreign
foreign
foreignexchange
exchange
exchange
exchangerisk,
risk,
risk,
risk,interest
interest
interest
interest
rate
rate
rate
raterisk,
risk,
risk,
risk,credit
credit
credit
creditrisk,
risk,
risk,
risk,useuse
use
useof
of
of
ofderivative
derivative
derivative
derivativefinancial
financial
financial
financialinstruments
instruments
instruments
instrumentsand and
and
andnon-derivative
non-derivative
non-derivative
non-derivativefinancial
financial
financial
financial
instruments,
instruments,
instruments,
instruments,andand
and
andinvestment
investment
investment
investmentof of
of
ofexcess
excess
excess
excessliquidity.
liquidity.
liquidity.
liquidity.
C.
C.
C.
C.Significant
Significant
Significant
Significantfinancial
financial
financial
financialrisks
risks
risks
risksandand
and
anddegrees
degrees
degrees
degreesof of
of
offinancial
financial
financial
financialrisks
risks
risks
risks
(a)
(a)Market
(a)
(a) Marketrisk
Market
Market risk
risk
risk
Foreign
Foreignexchange
Foreign
Foreign exchangerisk
exchange
exchange risk
risk
risk
i.i.i.i.The
TheCompany
The
The Companyoperates
Company
Company operatesinternationally
operates
operates internationallyand
internationally
internationally andis
and
and isexposed
isis exposedto
exposed
exposed toforeign
to
to foreignexchange
foreign
foreign exchangerisk
exchange
exchange riskarising
risk
risk arisingfrom
arising
arising from
from
from
various
variouscurrency
various
various currencyexposures,
currency
currency exposures,primarily
exposures,
exposures, primarilywith
primarily
primarily withrespect
with
with respectto
respect
respect tothe
to
to theUSD.
the
the USD.Foreign
USD.
USD. Foreignexchange
Foreign
Foreign exchangerisk
exchange
exchange risk
risk
risk
arises
arises from
arises
arises from future
from
from future commercial
future
future commercial transactions,
commercial
commercial transactions, recognised
transactions,
transactions, recognised assets
recognised
recognised assets and
assets
assets and liabilities
and
and liabilities and
liabilities
liabilities and net
and
and net
net
net
investment
investmentin
investment
investment inforeign
in
in foreignoperations.
foreign
foreign operations.
operations.
operations.
ii.
ii.The
ii.
ii. TheCompany’s
The
The Company’smanagement
Company’s
Company’s managementhas
management
management hasset
has
has setup
set
set upaaaapolicy
up
up policyto
policy
policy torequire
to
to requiregroup
require
require groupcompanies
group
group companiesto
companies
companies tomanage
to
to manage
manage
manage
their
theirforeign
their
their foreignexchange
foreign
exchange
exchange riskagainst
risk
risk againsttheir
against
against theirfunctional
their
their functionalcurrency.
functional
functional currency.The
currency.
currency. Thegroup
The
The groupcompanies
group
group companiesare
companies
companies are
are
are
required
requiredto
required
required tohedge
to
to hedgetheir
hedge
hedge theirentire
their
their entireforeign
entire
entire foreignexchange
foreign
exchange
exchange riskexposure
risk
risk exposurewith
exposure
exposure withthe
with
with theCompany’s
the
the Company’sFinance
Company’s
Company’s Finance
Finance
Finance
Department.
Department. To
Department.
Department. To manage
To
To manage their
manage
manage their foreign
their
their foreign exchange
foreign
foreign exchange risk
exchange
exchange risk arising
risk
risk arising from
arising
arising from future
from
from future commercial
future
future commercial
commercial
commercial
transactions
transactionsand
transactions
transactions andrecognised
and
and recognisedassets
recognised
recognised assetsand
assets
assets andliabilities,
and
and liabilities,entities
liabilities,
liabilities, entitiesin
entities
entities inthe
in
in theCompany
the
the Companyuse
Company
Company useforward
use
use forward
forward
forward
foreign
foreign exchange
foreign
foreign exchange contracts,
exchange
exchange contracts, transacted
contracts,
contracts, transacted with
transacted
transacted with Company’s
with
with Company’s Finance
Company’s
Company’s Finance Department.
Finance
Finance Department. Foreign
Department.
Department. Foreign
Foreign
Foreign
exchange
exchangerisk
exchange
exchange riskarises
risk
risk ariseswhen
arises
arises whenfuture
when
when futurecommercial
future
future commercialtransactions
commercial
commercial transactionsor
transactions
transactions orrecognised
or
or recognisedassets
recognised
recognised assetsor
assets
assets orliabilities
or
or liabilities
liabilities
liabilities
are
aredenominated
are
are denominatedin
denominated
denominated inaaaaforeign
in
in foreigncurrency
foreign
foreign currencythat
currency
currency thatis
that
that isnot
isis notthe
not
not theentity’s
the
the entity’sfunctional
entity’s
entity’s functionalcurrency.
functional
functional currency.
currency.
currency.
iii.
iii.The
iii.
iii. The Company’s
The
The Company’s businesses
Company’s
Company’s businesses involve
businesses
businesses involve some
involve
involve some non-functional
some
some non-functional currency
non-functional
non-functional currency operations
currency
currency operations (the
operations
operations (the
(the
(the
Company’s
Company’s functional
Company’s
Company’s functional currency:
functional
functional currency: NTD).
currency:
currency: NTD). The
NTD).
NTD). The information
The
The information on
information
information on assets
on
on assets and
assets
assets and liabilities
and
and liabilities
liabilities
liabilities
denominated
denominatedin
denominated
denominated inforeign
in
in foreigncurrencies
foreign
foreign currencieswhose
currencies
currencies whose values
whose
whose values would
values
values wouldbe
would
would bematerially
be
be materiallyaffected
materially
materially affectedby
affected
affected bythe
by
by the
the
the
exchange
exchangerate
exchange
exchange ratefluctuations
rate
rate fluctuationsis
fluctuations
fluctuations isas
isis asfollows:
as
as follows:
follows:
follows:
December
December
December
December31,
31,
31,
31,2018
2018
2018
2018
Foreign
Foreign
Foreign
Foreign
currency
currency
currency
currency
amount
amount
amount
amount Book
Book
Book
Bookvalue
value
value
value
(In
(In
(In Thousands)Exchange
(InThousands)
Thousands)
Thousands) Exchange
Exchange
Exchangerate
rate
rate
rate (NTD)
(NTD)
(NTD)
(NTD)
(Foreign
(Foreign
(Foreign
(Foreigncurrency:
currency:
currency:
currency:functional
functional
functional
functionalcurrency)
currency)
currency)
currency)
Financial
Financialassets
Financial
Financial assets
assets
assets
Monetary
Monetary
Monetary
Monetaryitemsitems
items
items
USD:NTD
USD:NTD
USD:NTD
USD:NTD $$$$ 1,024,952
1,024,952
1,024,952
1,024,952 30.7535
30.7535
30.7535
30.7535 $$$$ 31,520,861
31,520,861
31,520,861
31,520,861
Financial
Financial
Financial
liabilities
liabilities
liabilities
Monetary
Monetary
Monetary
Monetaryitemsitems
items
items
USD:NTD
USD:NTD
USD:NTD
USD:NTD $$$$ 959,193
959,193
959,193
959,193 30.7535
30.7535
30.7535
30.7535 $$$$ 29,498,542
29,498,542
29,498,542
29,498,542
~73~
~73~
~73~
~73~
379
December 31, 2017

Foreign
currency
amount Book value
Financial assets
Monetary items
USD:NTD $ 956,693 29.7005 $ 28,414,260
Monetary items
USD:NTD $ 908,807 29.7005 $ 26,992,022
iv. The total exchange gain, including realised and unrealised arising from significant foreign
exchange variation on the monetary items held by the Company for the years ended
December 31, 2018 and 2017 amounted to $123,543 and $13,664, respectively.
v. Analysis of foreign currency market risk arising from significant foreign exchange variation:
Effect on other
Financial assets
Monetary items
USD:NTD 1% $ 315,209 $ -
Monetary items
USD:NTD 1% $ 294,985 $ -
Effect on other
Financial assets
Monetary items
USD:NTD 1% $ 284,143 $ -
Monetary items
USD:NTD 1% $ 269,920 $ -
~74~
380
2018 Annual Report
Price
Price
Pricerisk
risk
risk
i.i.i.The
The
TheCompany
Company
Companyis
is
isexposed
exposed
exposedto
to
toequity
equity
equitysecurities
securities
securitiesprice
price
pricerisk
risk
riskbecause
because
becauseof
of
ofinvestments
investments
investmentsheld
held
heldby
by
bythe
the
the
Company
Company
Company and
and
and classified
classified
classified on
on
on the
the
the balance
balance
balance sheet
sheet
sheet either
either
either as
as
as available-for-sale
available-for-sale
available-for-sale or
or
or at
at
at fair
fair
fair value
value
value
through
through
through profit
profit
profit or
or
or loss.
loss.
loss. The
The
The Company
Company
Company is
is
is not
not
not exposed
exposed
exposed to
to
to commodity
commodity
commodityprice
price
price risk.
risk.
risk.To
To
To manage
manage
manage
its
its
its price
price
price risk
risk
risk arising
arising
arising from
from
from investments
investments
investments in
in
in equity
equity
equity securities,
securities,
securities, the
the
the Company
Company
Company diversifies
diversifies
diversifies its
its
its
portfolio.
portfolio.
portfolio. Diversification
Diversification
Diversification of
of
of the
the
the portfolio
portfolio
portfolio is
is
is done
done
done in
in
in accordance
accordance
accordance with
with
with the
the
the limits
limits
limits set
set
set by
by
by the
the
the
Company
Company
Company...
ii.
ii.
ii.The
The
The Company’s
Company’s
Company’s investments
investments
investments in
in
in equity
equity
equity securities
securities
securities comprise
comprise
comprise domestic
domestic
domestic listed
listed
listed and
and
and unlisted
unlisted
unlisted
stocks.
stocks.
stocks.The
The
Theprices
prices
pricesof
of
ofequity
equity
equitysecurities
securities
securitieswould
would
wouldchange
change
changedue
due
due to
to
tothe
the
thechange
change
change of
of
of the
the
thefuture
future
future value
value
value
of
of
of investee
investee
investee companies.
companies.
companies. If
If
If the
the
the prices
prices
prices of
of
of these
these
these equity
equity
equitysecurities
securities
securities had
had
had increased/decreased
increased/decreased
increased/decreased by
by
by
1%
1%
1% with
with
with all
all
all other
other
other variables
variables
variables held
held
held constant,
constant,
constant, equity
equity
equity would
would
would have
have
have increased/decreased
increased/decreased
increased/decreased by
by
by
$10,097
$10,097
$10,097and
and
and$12,935
$12,935
$12,935for
for
forthe
the
the years
years
yearsended
ended
endedDecember
December
December31,
31,
31,2018
2018
2018and
and
and 2017,
2017,
2017,respectively,
respectively,
respectively,as
as
asaaa
result
result
resultof
of
ofgains/losses
gains/losses
gains/losseson
on
onequity
equity
equitysecurities
securities
securitiesclassified
classified
classifiedas
as
asavailable-for-sale.
available-for-sale.
available-for-sale.
Cash
Cash
Cashflow
flow
flowand
and
andfair
fair
fairvalue
value
valueinterest
interest
interestrate
rate
raterisk
risk
risk
i.i.i.The
The
TheCompany’s
Company’s
Company’sinterest
interest
interestrate
rate
raterisk
risk
riskarises
arises
arisesfrom
from
fromlong-term
long-term
long-termborrowings.
borrowings.
borrowings.Borrowings
Borrowings
Borrowingsissued
issued
issuedat
at
at
variable
variable
variable rates
rates
rates expose
expose
exposethe
the
the Company
Company
Companyto
to
tocash
cash
cashflow
flow
flow interest
interest
interestrate
rate
rate risk
risk
riskwhich
which
which is
is
is partially
partially
partially offset
offset
offset
by
by
bycash
cash
cashand
and
andcash
cash
cashequivalents
equivalents
equivalentsheld
held
heldat
at
atvariable
variable
variablerates.
rates.
rates.Borrowings
Borrowings
Borrowingsissued
issued
issuedat
at
atfixed
fixed
fixedrates
rates
ratesexpose
expose
expose
the
the
the Company
Company
Company to
to
to fair
fair
fair value
value
value interest
interest
interest rate
rate
rate risk.
risk.
risk. During
During
During the
the
the years
years
years ended
ended
ended December
December
December 31,
31,
31, 2018
2018
2018
and
and
and 2017,
2017,
2017, the
the
the Company’s
Company’s
Company’s borrowings
borrowings
borrowings at
at
at variable
variable
variable rate
rate
rate were
were
were denominated
denominated
denominated in
in
in the
the
the NTD
NTD
NTD and
and
and
USD.
USD.
USD.
ii.
ii.
ii.At
At
AtDecember
December
December31,
31,
31,2018
2018
2018and
and
and2017,
2017,
2017,ifififinterest
interest
interestrates
rates
rateson
on
onborrowings
borrowings
borrowingshad
had
hadbeen
been
been1%
1%
1%higher/lower
higher/lower
higher/lower
with
with
with all
all
all other
other
other variables
variables
variables held
held
held constant,
constant,
constant, post-tax
post-tax
post-tax profit
profit
profit for
for
for the
the
the years
years
years ended
ended
ended December
December
December 31,
31,
31,
2018
2018
2018and
and
and2017
2017
2017would
would
wouldhave
have
havebeen
been
been$320,789
$320,789
$320,789and
and
and$329,520
$329,520
$329,520lower/higher,
lower/higher,
lower/higher,respectively,
respectively,
respectively,mainly
mainly
mainly
as
as
asaaaresult
result
resultof
of
ofhigher/lower
higher/lower
higher/lowerinterest
interest
interestexpense
expense
expenseon
on
onfloating
floating
floatingrate
rate
rateborrowings.
borrowings.
borrowings.
(b)
(b)
(b)Credit
Credit
Creditrisk
risk
risk
i.i.i.Credit
Credit risk
Credit risk refers
risk refers to
refers to the
to the risk
the risk of
risk of financial
of financial loss
financial loss to
loss to the
to the Company
the Company arising
Company arising from
arising from default
from default by
default by the
by the
the
clients
clients or
clients or counterparties
or counterparties of
counterparties of financial
of financial instruments
financial instruments on
instruments on the
on the contract
the contract obligations.
contract obligations. The
obligations. The main
The main
main
factor
factor is
factor is that
is that counterparties
that counterparties could
counterparties could not
could not repay
not repay in
repay in full
in full the
full the accounts
the accounts receivable
accounts receivable based
receivable based on
based on the
on the
the
agreed
agreedterms.
agreed terms.
terms.
ii.
ii.The
ii. TheCompany
The Companymanages
Company managestheir
manages theircredit
their creditrisk
credit risktaking
risk takinginto
taking intoconsideration
into considerationthe
consideration theentire
the entiregroup’s
entire group’sconcern.
group’s concern.
concern.
According
Accordingto
According tothe
to theCompany’s
the Company’scredit
Company’s creditpolicy,
credit policy,each
policy, eachlocal
each localentity
local entityin
entity inthe
in theCompany
the Companyis
Company isresponsible
is responsible
responsible
for
formanaging
for managingand
managing andanalysing
and analysingthe
analysing thecredit
the creditrisk
credit riskfor
risk foreach
for eachof
each oftheir
of theirclients
their clientsbefore
clients beforestandard
before standardpayment
standard payment
payment
and
anddelivery
and deliveryterms
delivery termsand
terms andconditions
and conditionsare
conditions areoffered.
are offered.Internal
offered. Internalrisk
Internal riskcontrol
risk controlassesses
control assessesthe
assesses thecredit
the creditquality
credit quality
quality
of
of the
of the customers,
the customers, taking
customers, taking into
taking into account
into account their
account their financial
their financial position,
financial position, past
position, past experience
past experience and
experience and other
and other
other
factors.
factors.
factors.
iii.
iii.The
iii. TheCompany
The Companyadopts
Company adoptsfollowing
adopts followingassumptions
following assumptionsunder
assumptions underIFRS
under IFRS999to
IFRS toassess
to assesswhether
assess whetherthere
whether therehas
there hasbeen
has been
been
aaasignificant
significantincrease
significant increasein
increase incredit
in creditrisk
credit riskon
risk onthat
on thatinstrument
that instrumentsince
instrument sinceinitial
since initialrecognition:
initial recognition:
recognition:
~75~
~75~
~75~
381
If
If
IfIfthe
the
the
thecontract
contract
contract
contractpayments
payments
payments
paymentswere
were
were
werepast
past
past
pastdue
due
due
dueover
over
over
over30
30
30
30days
days
days
daysbased
based
based
basedon
on
on
onthe
the
the
theterms,
terms,
terms,
terms,there
there
there
therehas
has
has
hasbeen
been
been
beenaaaa
significant
significant
significant
significantincrease
increase
increase
increasein
in
in
incredit
credit
credit
creditrisk
risk
risk
riskon
on
on
onthat
that
that
thatinstrument
instrument
instrument
instrumentsince
since
since
sinceinitial
initial
initial
initialrecognition.
recognition.
recognition.
recognition.
iv.
iv.
iv. IfIfthe
iv.If
If the
the default
thedefault
default rate
defaultrate
rate of
rateof
of an
ofan
an investment
aninvestment
investment target
investmenttarget
target exceeds
targetexceeds
exceeds 0.03%,
exceeds0.03%,
0.03%, there
0.03%,there
there has
therehas
has been
beenaaaasignificant
hasbeen
been significant
significant
significant
increase
increase
increase in
increasein
in credit
incredit
credit risk
creditrisk
risk on
riskon
on that
onthat
that instrument
thatinstrument
instrument since
instrumentsince
since initial
sinceinitial
initial recognition.
initialrecognition.
recognition.
recognition.
v.
v.
v. The
v.The
The Company
TheCompany
Company classifies
Companyclassifies
classifies customers’
classifiescustomers’
customers’ accounts
customers’accounts
accounts receivable
accountsreceivable
receivable in
receivablein
in accordance
inaccordance
accordance with
accordancewith
with the
withthe
the nature
thenature
nature of
natureof
of
of
segments.
segments.
segments. The
segments.The
The Company
TheCompany
Company applies
Companyapplies
applies the
appliesthe
the modified
themodified
modified approach
modifiedapproach
approach using
approachusing
using probability
usingprobability
probability of
probabilityof
of default
ofdefault
default to
defaultto
toto
estimate
estimate
estimate expected
estimateexpected
expected credit
expectedcredit
credit loss
creditloss
loss under
lossunder
under the
underthe
the provision
theprovision
provision matrix
provisionmatrix
matrix basis.
matrixbasis.
basis.
basis.
vi.
vi.
vi. The
vi.The
The Company
TheCompany
Company wrote-off
Companywrote-off
wrote-off the
wrote-offthe
the financial
thefinancial
financial assets,
financialassets,
assets, which
assets,which
which cannot
whichcannot
cannot be
cannotbe
be reasonably
bereasonably
reasonably expected
reasonablyexpected
expected to
expectedto
to be
tobe
be
be
recovered,
recovered,
recovered, after
recovered, after
after initiating
after initiating
initiating recourse
initiating recourse
recourse procedures.
procedures. However,
procedures. However,
However, the
However, the
the Company
the Company
Company will
Company will
will continue
will continue
continue
continue
executing
executing
executing the
executingthe
the recourse
the recourse
recourse procedures
recourseprocedures
procedures to
procedures to
to secure
tosecure
secure their
securetheir
their rights.
their rights.
rights. On
rights.On
On December
On December
December 31,
December31,
31, 2018,
31,2018,
2018, the
2018, the
the
the
Company
Company
Company has
Companyhas
has no
hasno
no written-off
nowritten-off
written-off financial
written-offfinancial
financial assets
financialassets
assets that
assetsthat
that are
thatare
are still
arestill
still under
stillunder
under recourse
underrecourse
recourseprocedures.
procedures.
procedures.
vii.
vii.
vii. The
vii.The
The Company
TheCompany
Company used
Companyused
used the
usedthe
the forecastability
theforecastability
forecastability to
forecastabilityto
to adjust
toadjust
adjust historical
adjusthistorical
historical and
historicaland
and timely
andtimely
timely information
timelyinformation
information to
informationto
to assess
toassess
assess
assess
the
the
the default
thedefault
default possibility
defaultpossibility
possibility of
possibilityof
of notes
ofnotes
notes receivable,
notesreceivable,
receivable, accounts
receivable,accounts
accounts receivable
accountsreceivable
receivable(including
(including related
(includingrelated
related parties)
relatedparties)
parties) and
parties)and
and
and
contract
contract
contract assets.
contractassets.
assets. On
assets.On
On December
OnDecember
December 31,
December31,
31, 2018,
31,2018,
2018, the
2018,the
the loss
theloss
loss rate
lossrate
rate methodology
ratemethodology
methodology isisas
methodologyis
is as
as follows:
asfollows:
follows:
follows:
Individual
Individual
Individual
Individual Group
Group
Group
Group Total
Total
Total
Total
At
At
At
AtDecember
December
December
December31, 31,
31,
31,2018
2018
2018
2018
Expected
Expected
Expected
Expectedloss
loss
loss
lossrate
rate
rate
rate 0.03%
0.03%
0.03%
0.03% 100%
100%
100%
100%
Total
Total
Total
Totalbook
book
book
bookvalue
value
value
value $$$$ 4,042,007
4,042,007
4,042,007
4,042,007 $$$$ 64,247
64,247
64,247
64,247 $$$$ 4,106,254
4,106,254
4,106,254
4,106,254
Loss
Loss
Loss
Lossallowance
allowance
allowance
allowance $$$$ 1,207
1,207
1,207
1,207 $$$$ 64,247
64,247
64,247
64,247 $$$$ 65,454
65,454
65,454
65,454
viii.
viii.
viii. Movements
viii.Movements
Movements in
Movementsin
in relation
inrelation
relation to
relationto
to the
tothe
the Company
theCompany
Company applying
Companyapplying
applying the
applyingthe
the modified
themodified
modified approach
modifiedapproach
approach to
approachto
to provide
toprovide
provide loss
provideloss
loss
loss
allowance
allowance
allowance for
allowancefor
for accounts
foraccounts
accounts receivable
accountsreceivable
receivable(including
(including related
(includingrelated
related parties)
relatedparties)
parties) and
parties)and
and contract
andcontract
contract assets
contractassets
assets are
assetsare
are as
areas
as
as
follows:
follows:
follows:
follows:
2018
2018
2018
2018
Accounts
Accounts
Accounts
Accountsreceivable
receivable
receivable
receivable Contract
Contract
Contract
Contractassets
assets
assets
assets
At
At
At
AtJanuary
January
January
January1_IAS
1_IAS
1_IAS
1_IAS39 39
39
39 ($
($
($
($ 68,482)
68,482)
68,482)
68,482) $$$$ ----
Adjustments
Adjustments
Adjustments
Adjustmentsunder
under
under
undernewnew
new
newstandards
standards
standards
standards (((( 796)
796)
796)
796)(((( 114)
114)
114)
114)
AtJanuary
At
At
At January1_IFRS
January
January 1_IFRS9999
1_IFRS
1_IFRS (((( 69,278)((((
69,278)
69,278)
69,278) 114)
114)
114)
114)
Provisionfor
Provision
Provision
Provision forimpairment
for
for impairment
impairment
impairment (((( 206)((((
206)
206)
206) 91)
91)
91)
91)
Effectof
Effect
Effect
Effect offoreign
of
of foreignexchange
foreign
foreign exchange
exchange
exchange 4,235
4,235
4,235
4,235 ----
At
At
At
AtDecember
December
December
December31 31
31
31 ($
($
($
($ 65,249)
65,249)
65,249)
65,249)($($
($
($ 205)
205)
205)
205)
ix.
ix.
ix. Credit
ix.Credit
Credit risk
Creditrisk
risk information
riskinformation
information of
informationof
of 2017
of2017
2017 isisprovided
2017is
is provided
provided in
providedin
in Note
inNote
Note 12(4).
Note12(4).
12(4).
12(4).
(c)Liquidity
(c)Liquidity
(c)Liquidity risk
(c)Liquidityrisk
risk
risk
i.i.i.i.Cash
Cash
Cash flow
Cashflow
flow forecasting
flowforecasting
forecasting isisperformed
forecastingis
is performed
performed in
performedin
in the
inthe
the operating
theoperating
operating entities
operatingentities
entities of
entitiesof
of the
ofthe
the Company
theCompany
Company and
Companyand
and aggregated
andaggregated
aggregated
aggregated
by
by
by Company’s
by Company’s
Company’s Finance
Company’s Finance
Finance Department.
Finance Department.
Department. Company’s
Department. Company’s
Company’s Finance
Company’s Finance
Finance Department
Finance Department
Department monitors
Department monitors
monitors rolling
monitors rolling
rolling
rolling
forecasts
forecasts
forecasts of
forecastsof
of the
ofthe
the Company’s
theCompany’s
Company’s liquidity
Company’sliquidity
liquidity requirements
liquidityrequirements
requirements to
requirementsto
to ensure
ensureitititithas
toensure
ensure has
has sufficient
hassufficient
sufficient cash
sufficientcash
cash to
cashto
to meet
tomeet
meet
meet
operational
operational
operational needs.
operationalneeds.
needs.
needs.
ii.
ii.
ii. The
ii.The
The table
Thetable
table below
tablebelow
below analyses
belowanalyses
analyses the
analysesthe
the Company’s
theCompany’s
Company’s non-derivative
Company’snon-derivative
non-derivative financial
financial liabilities
financialliabilities
liabilities and
liabilitiesand
and net-settled
andnet-settled
net-settled
net-settled
~76~
~76~
~76~
~76~
382
2018 Annual Report
or gross-settled derivative financial liabilities into relevant maturity groupings based on the
remaining period at the balance sheet date to the contractual maturity date for non-derivative
financial liabilities.
Between 3
Accounts payable $ 4,383,686 $ - $ - $ - $ - $ 4,383,686
Accounts payable
- related parties 193,831 - - - - 193,831
Other payables 857,410 71,226 - - - 928,636
Other payables
- related parties 6,683 - - - - 6,683
Bonds payable - 101,200 101,200 10,177,600 - 10,380,000
Long-term loans
(including current
portion) 498,172 6,514,509 11,703,964 18,770,047 4,647,345 42,134,037

Between 3
Accounts payable $ 3,470,062 $ - $ - $ - $ - $ 3,470,062
Accounts payable
- related parties 124,895 - - - - 124,895
Other payables 507,476 62,209 - - - 569,685
Other payables
- related parties 14,918 - - - - 14,918
Bonds payable
(including current
portion) - 84,000 84,000 8,210,000 - 8,378,000
Long-term loans
(including current
portion) 1,460,388 6,839,680 9,582,984 16,681,547 6,968,213 41,532,812
iii. The Company does not expect the timing of occurrence of the cash flows estimated through
the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount
will be significantly different.
(3) Fair value estimation
A.The different levels that the inputs to valuation techniques are used to measure fair value of
financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date. A market is regarded as active where a market
in which transactions for the asset or liability take place with sufficient frequency and
volume to provide pricing information on an ongoing basis. The fair value of the
Company’s investment in listed stocks, beneficiary certificates and derivative
instruments with quoted market prices is included in Level.
~77~
383
Level
Level 2:
2: Inputs
Inputs other
other than
than quoted
quoted prices
prices included
included within
within Level
Level 11 that
that are
are observable
observable for
for the
the asset
asset
or liability,
or liability, either
either directly
directly or
or indirectly.
indirectly.
Level 3:
Level 3: Unobservable
Unobservable inputs
inputs for
for the
the asset
asset or
or liability.
liability.
B. Fair
B. Fair value
value information
information of
of investment
investment property
property at
at cost
cost isis provided
provided in
in Note
Note 6(9).
6(9).
C. Financial
C. Financial instruments
instruments not
not measured
measured at
at fair
fair value
value
(a) Except
(a) Except for
for those
those listed
listed in
in the
the table
table below,
below, the
the carrying
carrying amounts
amounts of
of cash
cash and
and cash
cash equivalents,
equivalents,
notes receivable,
notes receivable, accounts
accounts receivable,
receivable, other
other receivables,
receivables, other
other financial
financial assets,
assets, accounts
accounts
payable and
payable and other
other payables
payables are
are approximate
approximate to
to their
their fair
fair values.
values.
December 31,
December 31, 2018
2018
Fair
Fair value
value
Book value
Book value Level33
Level
Bonds payable
Bonds payable $$ 10,000,000 $$
10,000,000 10,156,197
10,156,197
Long-term loans
Long-term loans (including
(including current
current portion)
portion) 40,085,191
40,085,191 42,134,037
42,134,037
$$ 50,085,191 $$
50,085,191 52,290,234
52,290,234
December 31,
December 31, 2017
2017
Fair value
Fair value
Book value
Book value Level33
Level
Bonds payable
Bonds payable $$ 8,000,000 $$
8,000,000 8,177,927
8,177,927
Long-term loans
Long-term loans (including
(including current
current portion)
portion) 39,690,592
39,690,592 41,532,812
41,532,812
$$ 47,690,592 $$
47,690,592 49,710,739
49,710,739
D.The
D. Therelated
relatedinformation
informationof
offinancial
financialand
and non-financial
non-financialinstruments
instruments measured
measured at
atfair
fair value
valueby
bylevel
level
on the
on the basis
basis of
of the
the nature,
nature, characteristics
characteristics and
and risks
risks of
of the
the assets
assets and
and liabilities
liabilities are
are as
as follows:
follows:
(a) The
(a) The related
related information
information of
of natures
natures of
of the
the assets
assets and
and liabilities
liabilities isis as
as follows:
follows:
December
2018 Level 11
Level Level 22
Level Level 33
Level Total
Total
Assets:
Assets:
Recurring
Recurring fair
fair value
value
measurements
measurements
Financial
Financial assets
assets atat fair
fair value
value
through
through other
other comprehensive
comprehensive
income
income
ǳEquity securities
ǳEquity securities 850,223 $$
$$ 850,223 -- $$ 171,359
171,359 $$ 1,021,582
1,021,582
~78~
~78~
384
2018 Annual Report
December
December31,31,2017
2017 Level
Level11 Level
Level22 Level
Level33 Total
Total
Assets:
Assets:
Recurring
Recurringfair
fairvalue
value
measurements
measurements
Available-for-sale
financialassets
assets
ǳEquity
ǳ Equitysecurities
securities $$1,144,974
1,144,974 $$ - - $$ 152,955
152,955 $$1,297,929
1,297,929
(b)Themethods
(b)The methodsand andassumptions
assumptionsthe
theCompany
Companyusedusedtotomeasure
measurefair
fairvalue
valueare
areasasfollows:
follows:
i.i.The
Theinstruments
instrumentsthe
theCompany
Companyusedusedmarket
marketquoted
quotedprices
pricesasastheir
theirfair
fairvalues
values(that
(thatis,
is,Level
Level
1)1)are
arelisted
listedbelow
belowbybycharacteristics:
characteristics:
Listed
Listedshares
shares
Market
Marketquoted
quotedprice
price Closing
Closingprice
price
ii.ii.Except
Except for
for financial
financial instruments
instruments with with active
active markets,
markets, thethe fair
fair value
value ofof other
other financial
financial
instruments isis measured
instruments measuredby byusing
using valuation
valuation techniques
techniques ororby by reference
reference toto counterparty
counterparty
quotes.The
quotes. Thefair
fairvalue
valueofoffinancial
instrumentsmeasured
measuredby byusing
usingvaluation
valuationtechniques
techniquescancan
bereferred
be referredtotocurrent
currentfair
fairvalue
valueofofinstruments
instrumentswith
withsimilar
similarterms
termsand andcharacteristics
characteristicsinin
substance,discounted
substance, discountedcashcashflow
flowmethod
methodororother
othervaluation
valuationmethods,
methods,including
includingcalculated
calculated
byapplying
by applyingmodel
modelusing
usingmarket
marketinformation
informationavailable
availableatatthe
theparent
parentcompany
companyonly onlybalance
balance
sheetdate
sheet date(i.e.
(i.e.yield
yieldcurves
curvesononthe
theTaipei
TaipeiExchange,
Exchange,average
averagecommercial
commercialpaperpaperinterest
interestrates
rates
quotedfrom
quoted fromReuters).
Reuters).
iii.When
iii. When assessing
assessing non-standard
non-standard and and low-complexity
low-complexity financial
financial instruments,
instruments, the the Company
Company
adoptsvaluation
adopts valuationtechnique
techniquethatthatisiswidely
widelyused
usedby bymarket
marketparticipants.
participants.TheTheinputs
inputsused
usedinin
thevaluation
the valuationmethod
methodtotomeasure
measurethesethesefinancial
instrumentsare arenormally
normallyobservable
observableininthethe
market.
market.
iv.The
iv. The valuation
valuation ofof derivative
derivative financial
instruments isis based
based on on valuation
valuation model
model widely
widely
acceptedby
accepted bymarket
marketparticipants,
participants,such
suchasaspresent
presentvalue
valuetechniques
techniquesand
andoption
optionpricing
pricingmodels.
models.
Forwardexchange
Forward exchangecontracts
contractsare
areusually
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~79~
~79~
385
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386
2018 Annual Report

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A.on
(4) Effects Summaries
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~82~
~82~
~82~
388
2018 Annual Report
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are
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(i)The
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within
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‘other
‘other gainsand
gains
gains andlosses’.
and
and losses’.
losses’.
losses’.
~85~
~85~
~85~
~85~
391
(ii) Amounts accumulated in other comprehensive income are reclassified into profit or loss
(ii)
(ii)Amounts
Amounts
in accumulated
accumulated
the periods in
when theinhedged
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in the periods amounts
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When a hedging in
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B. The reconciliations the periods
periods
of the
loss in
when
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carrying the hedged
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financial cash
cashcash
assets
forecast
flow
flow affects
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transfered profit
profit
flow affects
or
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loss.
December
profit or loss. 31, 2017,
B.
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The
IASreconciliations
reconciliations
B.
39,The of
of IFRS
reconciliations
to January 1, carrying
carrying amount
amount
of9,carrying
were of
of financial
asamount financial
follows: assets
assets
of financial transfered
transfered
assets from
from
transfered fromDecember
December
December 31,
31, 2017,
2017,
31, 2017,
IAS
IAS 39,
39,IAS
to
to January
January 1,
1, IFRS
IFRS
39, to January 1,9,
9, were
were
IFRS 9,as
as follows:
follows:
were as follows:
Effects
Measured at Effects
Effects
Effects
Measured
Measured atat
Measured
fair value at Held-to-
fair
fair value
through value Available-for- Held-to-
fair value
other Held-to-
Held-to- Financial
maturity
through
through through
other
other other Available-for-
Available-for-
Available-for-
comprehensive sale financial maturitymaturity
maturity
financial assetsFinancial
Financial
Financial
at Retained Others
comprehensivecomprehensive
comprehensive
income-equity sale
sale sale
financialfinancial
financial
assets financial
financial
financial
assets assets
amortisedassets
assets atatcostat Total Retained Others
Retained
Retained
earnings Others
Others
equity
income-equity assets assets amortised cost Total earnings equity
IAS 39 income-equity
$income-equity- $ assets assets
1,297,929 100,000 amortised
$ assets
assets amortised
$ cost
cost- $ 1,397,929
Total
Total $earnings
earnings - $ equity
equity -
39 IAS
Transferred
IAS
IAS 39 39 and
into $$ $ - $ 1,297,929
-- $$ 1,297,929
1,297,929 $ 100,000
$$ 100,000
100,000 $$ $ -- $$- 1,397,929
$ 1,397,929$$ $
1,397,929 -- -$$ $ -- -
Transferred into and
Transferred
Transferred
measured atinto
into
fair and
and
value
measured at fair value
measured
measured at
at fair
through other fair value
value - - - - -
through other - - - - -
through
through other
other
comprehensive -- -- -- -- --
comprehensive
comprehensive
comprehensive
income-equity
income-equity 1,297,929 ( 1,297,929)
1,297,929 ( 1,297,929)
Transferred
income-equity
income-equity into and into and1,297,929
Transferred 1,297,929 (( 1,297,929)
1,297,929)
Transferred
Transferredatinto
into and
measured measured andat - - - - - - - - --
measured
measured
amortisedat
at
cost
amortised cost -- -- ( 100,000)
( 100,000) 100,000
100,000 -- -- --
amortised
amortised
Impairmentcost
cost
loss
Impairment loss (( 100,000)
100,000) 100,000
100,000
Impairment
Impairment loss
loss
adjustmentadjustment - - - - - - - - - - 192,156
192,156( ( 192,156)
192,156)
adjustment
adjustment
IFRS 9 IFRS 9 $ --
1,297,929
$ 1,297,929 $ $ --
- $ - $ --
- $ - -- $ 1,397,929
$100,000
100,000 -- $ 192,156
$ 1,397,929 192,156
$ 192,156(( 192,156)
($192,156)
192,156)
192,156 ($ 192,156)
IFRS
IFRS 99 $$ 1,297,929
1,297,929 $$ -- $$ -- $$ 100,000
100,000 $$ 1,397,929
1,397,929 $$ 192,156
192,156 ($ ($ 192,156)
192,156)
(a) IAS
(a) Under Under 39,IAS 39, because
because the equity
the equity instruments,
instruments, whichwhich
werewere classified
classified as:as: available-for-sale
available-for-sale
(a)
(a) Under
Under IAS
IAS
financial 39,
39,
financialbecause
because
assets, assets, the
the equity
equity
amounting
amounting instruments,
instruments,
to $1,297,929,
to $1,297,929, which
which
werewere were
were
not held
not held classified
classified
for for
the the as:
as:
purpose
purpose available-for-sale
available-for-sale
of of trading,they
trading, theywere
were
financial
financial assets,
assets, amounting
amounting
reclassified
reclassified to
to$1,297,929,
as "financial
as "financial $1,297,929,
assets were
were
assets at fair
at fair value not
notthrough
value held
heldother
through for
forother
the
the purpose
purpose of
of trading,
trading,
comprehensive
comprehensive they
they
income
income were
were
(equity
(equity
instruments)"
reclassified
reclassified as amounting
as amounting
"financial
"financial assets
assets to
at $1,297,929,
at fair
fair value
value increased
through
through retained
other
other earnings andincome
comprehensive
comprehensive decreased
income other
(equity
(equity
instruments)" to $1,297,929, increased retained earnings and decreased other
equity interest
instruments)"
instruments)" in theto
toamounts of $192,156 and $192,156, respectively, ondecreased
initial application
equity interestamounting
amounting
in the amounts $1,297,929,
$1,297,929,
of $192,156increased
increased retained
retained
and $192,156, earnings
earnings and
respectively, and decreased
on initial other
other
application
equity
equity of IFRS
interest
interest in9.
in the
the amounts
amounts of of $192,156
$192,156 and
and $192,156,
$192,156, respectively,
respectively, on
on initial
initial application
application
of IFRS 9.
of
of IFRS
IFRS 9.
9.
~86~
~86~
~86~
~86~
392
2018 Annual Report
(b)
(b)
(b)
(b)
(b)
(b)
(b)
Under
Under
Under
Under
Under
Under
Under
IAS
IAS
IAS
IAS
IAS
IAS
IAS
39,
39,
39,
39,
39,
39,
39,
because
because
because
because
because
because
because
the
the
the
the
the
the
the
equity
equity
equity
equity
equity
equity
equity
instruments,
instruments,
instruments,
instruments,
instruments,
instruments,
instruments,
which
which
which
which
which
which
which
were
were
were
were
were
were
wereclassified
classified
classified
classified
classified
classified
classified
as:
as:
as:
as:
as:
as:
as:
held-to-maturity
held-to-maturity
held-to-maturity
held-to-maturity
held-to-maturity
held-to-maturity
held-to-maturity
financial
financial
financial
financial
financial
financial
financial
assets,
assets,
assets,
assets,
assets,
assets,
assets,
amounting
amounting
amounting
amounting
amounting
amounting
amounting
to
to
to
to
toto
to
$100,000,
$100,000,
$100,000,
$100,000,
$100,000,
$100,000,
$100,000,
met
met
met
met
met
met
met
the
the
the
the
the
the
the
condition
condition
condition
condition
condition
condition
condition
that
that
that
that
that
that
that
ititititititis
itis
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is
intended
intended
intended
intended
intended
intended
intended
to
to
to
to
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to
settle
settle
settle
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settle
settle
settle
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the
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principal
principal
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principal
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principal
principaland
and
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and
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and
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interest
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outstanding
outstanding
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balance,
balance,
balance,
balance,
balance,
balance,they
they
they
they
they
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were
were
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were
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reclassified
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reclassified
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assets
assets
assets
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amortised
amortised
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amounting
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$100,000
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on
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initial
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application
of
of
of
of
of
of
of
IFRS
IFRS
IFRS
IFRS
IFRS
IFRS
IFRS
9.
9.
9.
9.
9.9.
9.
C.
C.
C.
C.
C.
C.
C.
The
The
The
The
The
The
The
significant
significant
significant
significant
significant
significant
significant
accounts
accounts
accounts
accounts
accounts
accounts
accounts
as
as
as
as
as
as
as
of
of
of
of
of
of
of
December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
2017
2017
2017
2017
2017
2017
2017
are
are
are
are
are
are
are
as
as
as
as
as
as
as
follows:
follows:
follows:
follows:
follows:
follows:
follows:
financial
financial
financial
financial
financial
financial
financial
assets
assets
assets
assets
assets
assets
assets
Items
Items
Items
Items
Items
Items
Items December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
2017
2017
2017
2017
2017
2017
2017
Non-current
Non-current
Non-current
Non-current
Non-current
Non-current
Non-current items:
items:
items:
items:
items:
items:
items:
Listed
Listed
Listed
Listed
Listed
Listed
Listed (TSE
(TSE
(TSE
(TSE
(TSE
(TSE
(TSE and
and
and
and
and
and
and OTC)
OTC)
OTC)
OTC)
OTC)
OTC)
OTC) stocks
stocks
stocks
stocks
stocks
stocks
stocks $$$$$$$ 631,039
631,039
631,039
631,039
631,039
631,039
631,039
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted stocks
stocks
stocks
stocks
stocks
stocks
stocks 88,917
88,917
88,917
88,917
88,917
88,917
88,917
719,956
719,956
719,956
719,956
719,956
719,956
719,956
Valuation
Valuation
Valuation
Valuation
Valuation
Valuation
Valuation adjustment
adjustment
adjustment
adjustment
adjustment
adjustment
adjustment 577,973
577,973
577,973
577,973
577,973
577,973
577,973
$$$$$$$ 1,297,929
1,297,929
1,297,929
1,297,929
1,297,929
1,297,929
1,297,929
i.i.i.i.i.The
i.The
i.The
The
The
The
The
Company
Company
Company
Company
Company
Company
Company
recognised
recognised
recognised
recognised
recognised
recognised
recognised
$92,521
$92,521
$92,521
$92,521
$92,521
$92,521
$92,521
in
in
in
in
inin
in
other
other
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comprehensive
comprehensive
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income
income
income
income
income
income
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for
for
for
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fair
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value
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change
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ended
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ended
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ended
December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
2017.
2017.
2017.
2017.
2017.
2017.
2017.
ii.
ii.
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The
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ii.ii.
ii.The
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TheCompany
Company
Company
Company
Company
Company
Companyoriginally
originally
originally
originally
originally
originally
originallyowned
owned
owned
owned
owned
owned
ownedthe
the
the
the
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the
theemerging
emerging
emerging
emerging
emerging
emerging
emergingstock
stock
stock
stock
stock
stock
stockof
of
of
of
of
of
ofTaiwan
Taiwan
Taiwan
Taiwan
Taiwan
Taiwan
TaiwanHigh
High
High
High
High
High
HighSpeed
Speed
Speed
Speed
Speed
Speed
SpeedRail
Rail
Rail
Rail
Rail
Rail
Rail
Corporation
Corporation
Corporation
Corporation
Corporation
Corporation
Corporation
which
which
which
which
which
which
which
was
was
was
was
was
was
wasfirst
first
first
first
first
first
first
publicly
publicly
publicly
publicly
publicly
publicly
publicly
traded
traded
traded
traded
traded
traded
traded
on
on
on
on
on
on
on
October
October
October
October
October
October
October27,
27,
27,
27,
27,
27,
27,
2016.
2016.
2016.
2016.
2016.
2016.
2016.However,
However,
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for
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ended
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ended
ended
December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
2015,
2015,
2015,
2015,
2015,
2015,
2015,
the
the
the
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Company
Company
Company
Company
Company
Company
Companyassessed
assessed
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assessed
assessed
assessed
that
that
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that
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there
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there
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there
there
there
had
had
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been
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objective
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evidence
evidence
evidence
evidence
evidence
evidence
evidence
of
of
of
of
of
of
of
impairment
impairment
impairment
impairment
impairment
impairment
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given
given
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given
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that
that
that
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the
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market
market
market
market
market
market
market
price
price
price
price
price
price
price
of
of
of
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of
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the
the
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the
the
the
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shares
shares
shares
shares
shares
shares
shares
continuously
continuously
continuously
continuously
continuously
continuously
continuously
fell.
fell.
fell.
fell.
fell.
fell.
fell.
As
As
As
As
As
As
As
of
of
of
of
of
of
of
December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
2017,
2017,
2017,
2017,
2017,
2017,
2017,
the
the
the
the
the
the
the
Company
Company
Company
Company
Company
Company
Company
has
has
has
has
has
has
hasrecognized
recognized
recognized
recognized
recognized
recognized
recognized
$189,091
$189,091
$189,091
$189,091
$189,091
$189,091
$189,091
as
as
as
as
as
as
as
impairment
impairment
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impairment
impairment
impairment
loss.
loss.
loss.
loss.
loss.
loss.
loss.
iii.
iii.
iii.
iii.
iii.
iii.
iii.
The
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Company
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recognised
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impairment
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impairment
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loss
loss
loss
loss
loss
loss
loss
of
of
of
of
of
of
of
$3,065
$3,065
$3,065
$3,065
$3,065
$3,065
$3,065
on
on
on
on
on
on
on
unlisted
unlisted
unlisted
unlisted
unlisted
unlisted
unlisted
stocks.
stocks.
stocks.
stocks.
stocks.
stocks.
stocks.
iv.
iv.
iv.
iv.
iv.
iv.
iv.
The
The
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Company
Company
Company
Company
Company
Company
Company
has
has
has
has
has
has
has
no
no
no
no
no
no
no
available-for-sale
available-for-sale
available-for-sale
available-for-sale
available-for-sale
available-for-sale
available-for-sale
assets
assets
assets
assets
assets
assets
assets
pledged
pledged
pledged
pledged
pledged
pledged
pledged
to
to
to
to
toto
to
others.
others.
others.
others.
others.
others.
others.
(b)Held-to-maturity
(b)Held-to-maturity
(b)Held-to-maturity
(b)Held-to-maturity
(b)Held-to-maturity
(b)Held-to-maturity
(b)Held-to-maturity
financial
financial
financial
financial
financial
financial
financial
assets
assets
assets
assets
assets
assets
assets
Items
Items
Items
Items
Items
Items
Items December
December
December
December
December
December
December
31,
31,
31,
31,
31,
31,
31,
2017
2017
2017
2017
2017
2017
2017
Non-current
Non-current
Non-current
Non-current
Non-current
Non-current
Non-current items:
items:
items:
items:
items:
items:
items:
Financial
Financial
Financial
Financial
Financial
Financial
Financial bonds
bonds
bonds
bonds
bonds
bonds
bonds $$$$$$$ 100,000
100,000
100,000
100,000
100,000
100,000
100,000
i.i.i.i.i.The
i.The
i.The
The
The
The
The
Company
Company
Company
Company
Company
Company
Companyrecognised
recognised
recognised
recognised
recognised
recognised
recognised
interest
interest
interest
interest
interest
interest
interest
income
income
income
income
income
income
income
of
of
of
of
of
of
of
$2,339
$2,339
$2,339
$2,339
$2,339
$2,339
$2,339
for
for
for
for
for
for
for
amortised
amortised
amortised
amortised
amortised
amortised
amortised
cost
cost
cost
cost
cost
cost
cost
in
in
in
in
inin
in
profit
profit
profit
profit
profit
profit
profit
or
or
or
or
or
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loss
loss
loss
loss
loss
loss
loss
for
for
for
for
for
for
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the
the
the
the
the
the
the year
year
year
year
year
year
yearended
ended
ended
ended
ended
ended
endedDecember
December
December
December
December
December
December 31,
31,
31,
31,
31,
31,
31, 2017
2017
2017
2017
2017
2017
2017
ii.ii.
ii.
ii.
ii.
ii. ii.The
The
The
The
The
The
The counterparties
counterparties
counterparties
counterparties
counterparties
counterparties
counterparties
of
ofof
of
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of the
the
the
the
the
the
theCompany’s
Company’s
Company’s
Company’s
Company’s
Company’s
Company’s investments
investments
investments
investments
investments
investments
investmentshave
have
have
have
have
have
have good
good
good
good
good
good
good credit
credit
credit
credit
credit
credit
creditquality.
quality.
quality.
quality.
quality.
quality.
quality.
iii.
iii.
iii.
iii.
iii.
iii.The
iii.
The
The
The
The
The
TheCompany
Company
Company
Company
Company
Company
Company has
has
has
has
has
has
hasno
no
no
no
no
no
no held-to-maturity
held-to-maturity
held-to-maturity
held-to-maturity
held-to-maturity
held-to-maturity
financial
financial
financial
financial
financial
financial assets
assets
assets
assets
assets
assets
assetsheld
held
held
held
held
held
held by
by
by
by
by
by
by the
the
the
the
the
the
theCompany
Company
Company
Company
Company
Company
Company pledged
pledged
pledged
pledged
pledged
pledged
pledged
to
tototo
to
to to
others.
others.
others.
others.
others.
others.
others.
D.
D.
D.
D.
D.
D.
D. Credit
Credit
Credit
Credit
Credit
Credit
Credit risk
risk
risk
risk
risk
risk
risk information
information
information
information
information
information
information for
for
for
for
for
for
for the
the
the
the
the
the
the year
year
year
year
year
year
yearended
ended
ended
ended
ended
ended
ended December
December
December
December
December
December
December 31,
31,
31,
31,
31,
31,
31,2017
2017
2017
2017
2017
2017
2017 are
are
are
are
are
are
are
as
asas
as
asas
as follows
follows
follows
follows
follows ::::: ::
follows
follows
(a)
(a)
(a)
(a)
(a)
(a)
(a) Credit
Credit
Credit
Credit
Credit
Credit
Credit risk
risk
risk
risk
risk
risk
risk refers
refers
refers
refers
refers
refers
refers
to
tototo
to
to to the
the
the
the
the
the
the risk
risk
risk
risk
risk
risk
risk
of
ofof
of
ofof
of financial
financial
financial
financial
financial
financial
financial loss
loss
loss
loss
loss
loss
loss
to
tototo
to
to to the
the
the
the
the
the
the Company
Company
Company
Company
Company
Company
Company arising
arising
arising
arising
arising
arising
arising from
from
from
from
from
from
from default
default
default
default
default
default
default
byby
by
by
byby
by the
the
the
the
the
the
the
clients
clients
clients
clients
clients
clients
clients
or
oror
or
oror
or counterparties
counterparties
counterparties
counterparties
counterparties
counterparties
counterparties
of
ofof
of
ofof
of financial
financial
financial
financial
financial
financial
instruments
instruments
instruments
instruments
instruments
instruments
on
onon
on
onon
on the
the
the
the
the
the
the contract
contract
contract
contract
contract
contract
contract obligations.
obligations.
obligations.
obligations.
obligations.
obligations.
obligations.According
According
According
According
According
According
Accordingto
tototo
to
to to
the
the
the
the
the
the
theCompany’s
Company’s
Company’s
Company’s
Company’s
Company’s
Company’s credit
credit
credit
credit
credit
credit
creditpolicy,
policy,
policy,
policy,
policy,
policy,
policy, each
each
each
each
each
each
each local
local
local
local
local
local
local entity
entity
entity
entity
entity
entity
entity
in
ininin
in
in in the
the
the
the
the
the
theCompany
Company
Company
Company
Company
Company
Companyis
isisis
is
is is responsible
responsible
responsible
responsible
responsible
responsible
responsible for
for
for
for
for
for
formanaging
managing
managing
managing
managing
managing
managing
and
and
and
and
and
and
and analysing
analysing
analysing
analysing
analysing
analysing
analysing the
the
the
the
the
the
the credit
credit
credit
credit
credit
credit
credit risk
risk
risk
risk
risk
risk
risk for
for
for
for
for
for
for each
each
each
each
each
each
each
ofof
of
of
of
of
of their
their
their
their
their
their
their new
new
new
new
new
new
new clients
clients
clients
clients
clients
clients
clients before
before
before
before
before
before
before standard
standard
standard
standard
standard
standard
standard payment
payment
payment
payment
payment
payment
payment and
and
and
and
and
and
and
delivery
delivery
delivery
delivery
delivery
delivery
delivery terms
terms
terms
terms
terms
terms
terms and
and
and
and
and
and
and conditions
conditions
conditions
conditions
conditions
conditions
conditions are
are
are
are
are
are
are offered.
offered.
offered.
offered.
offered.
offered.
offered. Internal
Internal
Internal
Internal
Internal
Internal
Internal risk
risk
risk
risk
risk
risk
risk control
control
control
control
control
control
control assesses
assesses
assesses
assesses
assesses
assesses
assesses the
the
the
the
the
the
the credit
credit
credit
credit
credit
credit
credit quality
quality
quality
quality
quality
quality
quality
of
ofofof
of
of of
the
the
the
the
the
the
the customers,
customers,
customers,
customers,
customers,
customers,
customers, taking
taking
taking
taking
taking
taking
taking into
into
into
into
into
into
into account
account
account
account
account
account
accounttheir
their
their
their
their
their
theirfinancial
financial
financial
financial
financial
financial
financial position,
position,
position,
position,
position,
position,
position,past
past
past
past
past
past
past experience
experience
experience
experience
experience
experience
experience and
and
and
and
and
and
and other
other
other
other
other
other
otherfactors.
factors.
factors.
factors.
factors.
factors.
factors.
~87~
~87~
~87~
~87~
~87~
~87~
~87~
393
Individual risk limits are set based on internal or external ratings in accordance with limits
set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit
risk arises from cash and cash equivalents, derivative financial instruments and deposits with
banks and financial institutions, as well as credit exposures to wholesale and retail customers,
including outstanding receivables. For banks and financial institutions, only independently
rated parties with a minimum rating of 'A' are accepted.
(b) For the year ended December 31, 2017, no credit limits were exceeded during the reporting
periods, and management does not expect any significant losses from non-performance by
these counterparties.
(c) The credit quality of accounts receivable that were neither past due nor impaired was in the
following categories based on the Company’s credit quality control policy.
December 31, 2017
Group 1 $ 277,138
Group 2 2,018,146
$ 2,295,284
Note:
Company 1: Low risk: The Company’s ten largest customers, with sound performance and
high transparency of financial information, are approved based on the Company’s
credit quality control policy.
Company 2: General risk.
(d) The ageing analysis of accounts receivable that were past due but not impaired is as follows:
December 31, 2017
Up to 30 days $ 301,805
31 to 180 days 264,190
$ 565,995
(e) Movement analysis of financial assets that were impaired is as follows:
2017
Individual provision Group provision Total
At January 1 $ 73,732 $ - $ 73,732
Net exchange differences ( 5,250) - ( 5,250)
At December 31 $ 68,482 $ - $ 68,482
(5) Effects of initial application of IFRS 15 and information on application of IAS 11 and IAS 18 in
2017
A. The significant accounting policies applied on revenue recognition for the year ended December
31, 2017 are set out below.
(a) Sales of goods
~88~
394
2018 Annual Report
account of business tax, returns, rebates and discounts for the sale of goods to external
customers in the ordinary course of the Company’s activities. Revenue arising from the sales
of goods is recognised when the Company has delivered the goods to the customer, the
amount of sales revenue can be measured reliably and it is probable that the future economic
benefits associated with the transaction will flow to the entity. The delivery of goods is
completed when the significant risks and rewards of ownership have been transferred to the
customer, the Company retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold, and the customer
has accepted the goods based on the sales contract or there is objective evidence showing that
all acceptance provisions have been satisfied.
(b) Sales of services
when the outcome of services provided can be estimated reliably. The stage of completion of
a service contract is measured by the percentage of the actual services performed as of the
financial reporting date to the total services to be performed. If the outcome of a service
contract cannot be estimated reliably, contract revenue should be recognised only to the extent
that contract costs incurred are likely to be recoverable.
B. The revenue of the Company recognised by using above accounting policies for the year ended
Year ended December 31,
2017
Ship rental and slottage income 331,663
Commission income 348,411
Others income 669,459
$ 28,897,616
C. Under IFRS 15, liabilities are recognised as contract liabilities, but were previously presented as
other current liabilities-others in the balance sheet, the effects and description of current balance
sheets and comprehensive income statements if the Company continues adopting above
accounting policies for the year ended December 31, 2018 are as follows:
December 31, 2018

Balance by using
Balance by using previous accounting Effects from chages
Balance sheet items IFRS 15 policies in accounting policy
Contract assets - current $ 682,327 $ - $ 682,327
Accounts receivable, net 3,258,807 3,941,134 ( 682,327)
Contract liabilities- current ( 431,290) - ( 431,290)
Other current liabilities ( 9,040,820) 9,472,110 ( 18,512,930)
~89~
395
There
Thereisisno
noimpact
impacttotothe
thecurrent
currentcomprehensive
income.
(a)
(a) Contracts
Contractswith
withcustomers
customerswhere
where services
serviceswere
wererendered
renderedbut
butnot
notyet
yetbilled,
billed, were
were previously
previously
presented
presentedas
asaccounts
accountsreceivable
receivableon
onthe
thebalance
balancesheet,
sheet,and
andare
arerecognised
recognisedas
ascontract
contractassets
assetsinin
accordance
accordancewith
withIFRS
IFRS15
15‘Revenue
‘Revenuefrom
fromcontracts
contractswith
withcustomers’.
customers’.
(b)
(b) Contracts
Contracts with
with customers
customers inin relation
relation toto advance
advance service
service receipt
receipt inin the
the previous
previous period
period are
are
reclassified
reclassifiedas
ascontract
contractliabilities
liabilitiesininaccordance
accordancewith
withIFRS
IFRS15.
15.
13.
13.SUPPLEMENTARY
SUPPLEMENTARYDISCLOSURES
DISCLOSURES
(1)Significant
(1) Significanttransactions
transactionsinformation
information
A.Loanstotoothers:
A.Loans others:Please
Pleaserefer
refertototable
table1.1.
B.Provisionofofendorsements
B.Provision endorsementsand
andguarantees
guaranteestotoothers:
others:Please
Pleaserefer
refertototable
table2.2.
C.Holdingof
C.Holding ofmarketable
marketablesecurities
securitiesatatthe
theend
endof
ofthe
theperiod
period(not
(notincluding
includingsubsidiaries,
subsidiaries,associates
associates
andjoint
and jointventures):
ventures):Please
Pleaserefer
refertototable
table3.3.
D.Acquisitionor
D.Acquisition orsale
saleof
ofthe
thesame
samesecurity
securitywith
withthe
theaccumulated
accumulatedcost
costexceeding
exceeding$300
$300million
millionor
or20%
20%
ofthe
of theCompany’s
Company’spaid-in
paid-incapital:
capital:Please
Pleaserefer
refertototable
table4.4.
E.Acquisition
E. Acquisitionof
ofreal
realestate
estatereaching
reaching$300
$300million
millionor
or20%
20%of
ofpaid-in
paid-incapital
capitalor
ormore:
more:None.
None.
F.F.Disposal
Disposalof
ofreal
realestate
estatereaching
reaching$300
$300million
millionor
or20%
20%of
ofpaid-in
paid-incapital
capitalor
ormore:
more:None.
None.
G.Purchasesor
G.Purchases orsales
salesof
of goods
goodsfrom
fromor
ortotorelated
relatedparties
partiesreaching
reaching$100
$100million
millionor
or20%
20%of
ofpaid-in
paid-in
capitalor
capital ormore:
more:Please
Pleaserefer
refertototable
table5.5.
H.Receivablesfrom
H.Receivables fromrelated
relatedparties
partiesreaching
reaching$100
$100million
millionor
or20%
20%of
ofpaid-in
paid-incapital
capitalor
ormore:
more:Please
Please
refertototable
refer table6.6.
I.I.Trading
Tradingininderivative
derivativeinstruments
instrumentsundertaken
undertakenduring
duringthe
thereporting
reportingperiods:
periods:None.
None.
J.J.Significant
Significantinter-company
inter-companytransactions
transactionsduring
duringthe
thereporting
reportingperiods:
periods:Please
Pleaserefer
refertototable
table7.7.
(2)Information
(2) Informationon
oninvestees
investees(not
(notincluding
includinginvestees
investeesininMainland
MainlandChina)
China)
Names,locations
Names, locationsand
andother
otherinformation
informationofofinvestee
investeecompanies
companies(not
(notincluding
includinginvestees
investeesininMainland
Mainland
China)ǺPleaserefer
China)ǺPlease refertototable
table8.8.
(3)Information
(3) Informationon
oninvestments
investmentsininMainland
MainlandChina
China
A.Basic
A. Basicinformation:
information:Please
Pleaserefer
refertototable
table9.9.
B.Significant
B. Significanttransactions,
transactions,either
eitherdirectly
directlyor orindirectly
indirectlythrough
throughaathird
thirdarea,
area,with
withinvestee
investeecompanies
companies
ininthe
theMainland
MainlandArea:
Area:None.
None.
14.
14.SEGMENT
SEGMENTINFORMATION
INFORMATION
None.
None.
~90~
~90~
396
2018 Annual Report

Statement of cash and cash equivalents
December 31, 2018
In Thousands of NTD
!
Amount
Item Description Subtotal Total
Cash $ 14,807
Cash on hand $ 26
Petty cash
TWD 1,330
USD 437 13,523
Add: Unrealised gains or losses ( 72)
Cash in banks
Checking accounts 205,409
NTD demand deposits 796,326
Foreign demand deposits 1,592,650
EUR 2,041 71,697
GBP 348 13,527
HKD 10 37
INR 2,247 987
JPY 10,865 3,023
PLN 163 1,401
SGD 348 7,841
USD 48,583 1,495,790
VND 22,415 31
Add: Unrealised gains or losses ( 1,684)
NTD time deposits Interest rate:0.58%~1.04% 11,866,471
Foreign time deposits Interest rate:2.68%~3.22% 7,196,794
USD 234,015 7,126,298
Add: Unrealised gains or losses 70,496
$ 21,672,457
~91~
397

Statement of accounts receivable
December 31, 2018
In Thousands of NTD
!
Client Name Description Amount Footnote

Non-related parties
CMA CGM S.A. $ 548,881 1) Foreign freight are translated
Cosco Container Lines 543,011 into the functional currency at
Co.,Ltd. the dates of the transactions
Orient Overseas Containers 170,546 and retranslated at the
Line Limited exchange rates prevailing at the
Others 2,066,335 balance sheet date. Exchange
differences arising upon re-
Less: Unrealised gains or losses ( 4,741) translation at the balance sheet
Less: Allowance for bad debts ( 65,225) date are recognised in profit or
3,258,807 loss.
Related parties
Evergreen International Corporation 33,363 2) The amount of individual client
Evergreen International Storage and 23,243 included in others does not
Transport Corporation exceed 5% of the account
Evergreen Marine (Singapore) 11,453 balance.
Pte. Ltd.
Evergreen Marine (UK) Ltd. 9,549
Greencompass Marine S.A. 7,782
Italia Marittima S.p.A 8,445
Others 5,788
99,623
$ 3,358,430
~92~
398
2018 Annual Report

Statement of other receivable
December 31, 2018
In Thousands of NTD
!
Item Description Amount Footnote
Non-related parties
Accrued interest Interest income $ 50,307
Tax refund receivable 12,203
China COSCO Shipping Co., Ltd. 9,432
CMA CGM S.A. 11,093
Others 122,195 The amount of individual
205,230 client included in others
does not exceed 5% of the
Related parties account balance.
Evergreen International Corporation 179,593
Others 1,344 The amount of individual
180,937 client included in others
does not exceed 5% of the
$ 386,167 account balance.
(blank part below)
~93~
399

Statement of ship fuel
December 31, 2018
In Thousands of NTD
Cost Net Realisable

Item Description (in thousands) Value Footnote
Fuel TYOT USD 3,104 $ 95,455 1) Fuel inventories of each ship are
recorded at cost and retranslated at the
LBRA USD 3,042 93,540 exchange rates prevailing at the balance
LIVN USD 2,380 73,183 sheet date.
GIVE USD 2,084 64,105
LOYL USD 1,850 56,894
LRIC USD 1,759 54,104
LUNR USD 1,636 50,319
Others USD 13,674 420,522 2) The amount of individual client included
in others does not exceed 5% of the
USD 29,529 $ 908,122
account balance.
(blank part below)
~94~
400
2018 Annual Report

Statement of other current assets
December 31, 2018
In Thousands of NTD
!

Agency accounts 1) Agency accounts are translated into
Evergreen Indis Pvt Ltd $ 72,695 the functional currency at the dates
of the transactions and retranslated
Unigreen Marine S.A.(PNM) 36,904 at the exchange rates prevailing at
Arabian Gulf Marine Trading 29,316 the balance sheet date. Exchange
Co. differences arising upon re-
Master International Shipping 44,944 translation at the balance sheet date
Agency Co. are recognised in profit or loss.
Evergreen America Corporation 24,401
Canada Branch
Others 209,726 2) The amount of individual client
included in others does not exceed
417,986
5% of the account balance.
Shipowner's accounts
Evergreen Marine (UK) Limited $ 675,749
Italia Marittima S.p.A 279,431
Evergreen International S.A. 180,684
Greencompass Marine S.A. 114,568
Gaining Enterprise S.A. 20,409
1,270,841
Other financial assets 121,632
Others Temporary payments for others 963,602
$ 2,774,061
~95~
401
402
Evergreen Marine
Evergreen Corporation
Marine (Taiwan)
Corporation Ltd.
(Taiwan) Ltd.
Statement
Statement of changes
of changes in investments
in investments accounted
accounted forfor using
using equity
equity method
method
ForFor
thethe
yearyear ended
ended December
2018
InIn
Thousands shares/NTD
Thousandsofofshares/NTD
! !
Market Value
MarketValue oror
Balance
Balance at January
at January 1, 2018 Additions
1, 2018 Additions in Investment Decrease
in Investment Decrease in Investment
in Investment Balance
Balance at at December
2018 Net
Net Assets
Assets Value
Value
Number
Number of of Number
Number Number
Number Number
Number of of Price
Price
Investees
Investees shares
shares Amount
Amount of shares
of shares Amount
Amount of shares Amount
of shares Amount shares Ownership
shares Ownership Amount
Amount (NT
(NT T otal
D)D) T otal Amount Collateral
Amount Footnote
Collateral Footnote
Peony
Peony Investment
Investment S.A.S.A. 4,765 $ 29,984,506
4,765$ 29,984,506 - -$ $ - - 1,412,743
- - $ $1,412,743 4,765
4,765 100.00
100.00 $ $28,571,763
28,571,763 $ $ 28,887,580
- - $ $ 28,887,580 NoNo
Everport
Everport T erminal
T erminal Services
Services Inc.Inc. 1 1 568,156
568,156 - - 478,851
478,851 - - - - 1 1 94.43
94.43 1,047,007
1,047,007 - - 1,197,772
1,197,772 ˥˥
T aiwan
T aiwan T erminal
T erminal Services
Services Co.,Co.,
Ltd.Ltd. 5,500
5,500 39,912
39,912 - - 13,374
13,374 - - - - 5,500
5,500 55.00
55.00 53,286
53,286 - - 53,286
53,286 ˥˥
Charng
Charng Yang
Yang Development
Development Co.,Ltd.
Co.,Ltd. 58,542
58,542 537,532
537,532 - - 68,646
68,646 - - 62,120
62,120 58,542
58,542 40.00
40.00 544,058
544,058 - - 777,524
777,524 ˥˥
Evergreen
International Storage
Storage andand T ransport
T ransport
Corporation
Corporation 424,063
424,063 8,554,230
8,554,230 6,629
6,629 575,267
575,267 - - 148,422 430,692
148,422 430,692 40.36
40.36 8,981,075
8,981,075 13.50
13.50 5,814,345
5,814,345 ˥˥
! Evergreen
! Evergreen Security
Security Corporation
Corporation 6,336
6,336 97,140
97,140 - - 14,525
14,525 - - - - 6,336
6,336 31.25
31.25 111,665
111,665 - - 111,665
111,665 ˥˥
EVAEVA Airways
Airways Corporation
Corporation 680,786
680,786 9,462,402 34,039
9,462,402 34,039 1,007,871
1,007,871 - - 136,157 714,825
136,157 714,825 16.31
16.31 10,334,116
10,334,116 15.80
15.80 11,294,242
11,294,242 ˥˥
T aipei
T aipei PortPort Container
Container T erminal
T erminal Corporat
Corporat ion ion 109,378
109,378 977,049
977,049 - - 49,289
49,289 - - 109,378
- - 109,378 21.03
21.03 1,026,338
1,026,338 - - 1,024,789
1,024,789 ˥˥
Evergreen
Evergreen Marine
Marine (Latin
(Latin America),
America), S.A.S.A. 105105 4,364
4,364 - - 407407 - - 1,297
1,297 105
105 17.50
17.50 3,474
3,474 - - 3,474
3,474 ˥˥
VIP VIP Greenport

Greenport JointJoint Stock
Stock Company
Company 13,750
13,750 205,923
205,923 - - 47,744
47,744 - - - - 13,750
13,750 21.74
21.74 253,667
253,667 - - 250,233
250,233 ˥˥
Evergreen
Evergreen Marine
Marine (Hong
(Hong Kong)
Kong) Ltd.Ltd. 6,320
6,320 6,287,883
6,287,883 - - 930,715
930,715 - - 6,320
6,320 79.00
79.00 7,218,598
7,218,598 - - 7,218,598
7,218,598 ˥˥
$ 56,719,097
$ 56,719,097 3,186,689
$ $3,186,689 1,760,739
$ $1,760,739 58,145,047
$ $58,145,047
~96~
~96~
Evergreen
Evergreen Marine
MarineCorporation
Corporation(Taiwan)
(Taiwan) Ltd.
Ltd.
Statement
Statement changes
ofof changes ships
inin ships
ForFor year
thethe ended
year December
ended December 2018
31,31, 2018
InInThousands
ThousandsofofNTD
NTD
ItemItem Balance
Balance at January
at January 1, 2018
1, 2018 Increased
Increased in the
in the period
period Transferred
Transferred in the
in the period
period Decreased
Decreased in in
thethe period
period Balance
Balance at at December
2018 Footnote
Footnote
Ships
Ships Ǻ Ǻ
LOYL
LOYL $ $ 3,201,590
3,201,590 $ $ 1,983
1,983 $ $ - - $ $ - - 3,203,573
3,203,573
LUCD
LUCD 3,157,763
3,157,763 621621 - - - - 3,158,384
3,158,384
LOGC
LOGC 3,146,076
3,146,076 17,481
17,481 - - - - 3,163,557
3,163,557
LIVN
LIVN 3,224,550
3,224,550 9,571
9,571 - - - - 3,234,121
3,234,121
LBRA
LBRA 3,201,422
3,201,422 4,240
4,240 - - - - 3,205,662
3,205,662
LUNR
LUNR 3,316,821
3,316,821 - - - - - - 3,316,821
3,316,821
LYRC
LYRC 3,305,403
3,305,403 - - - - - - 3,305,403
3,305,403
PRM
PRM T T 560,051
560,051 13,082
13,082 - - - - 573,133
573,133
PRBT
PRBT 513,405
513,405 9,300
9,300 - - - - 522,705
522,705
PRSP
PRSP 492,275
492,275 23 23 - - - - 492,298
492,298
BLM
BLM Y Y 1,195,037
1,195,037 - -( ( 2,780)
2,780) - - 1,192,257
1,192,257
BLOM
BLOM - - - - 1,259,843
1,259,843 - - 1,259,843
1,259,843
BEM
BEM Y Y - - - - 1,258,471
1,258,471 - - 1,258,471
1,258,471
BASS
BASS - - - - 1,255,394
1,255,394 - - 1,255,394
1,255,394
BEFT
BEFT - - - - 1,170,750
1,170,750 - - 1,170,750
1,170,750
BORD
BORD - - - - 1,192,681
1,192,681 - - 1,192,681
1,192,681
BEDY
BEDY - - - - 1,162,769
1,162,769 - - 1,162,769
1,162,769
BENG
BENG - - - - 1,193,662
1,193,662 - - 1,193,662
1,193,662
$ $ 25,314,393
25,314,393 $ $ 56,301
56,301 $ $ 8,490,790
8,490,790 $ $ - - $ $ 33,861,484
33,861,484
~97~
~97~
2018 Annual Report
403
404
Evergreen
Marine Corporation (Taiwan) (Taiwan)
Ltd. Ltd.
Statement of changes in ships
Statement of changes in ships (continue)(continue)
For the For
yearthe
ended ended December
yearDecember 31, 2018 31, 2018
In ThousandsInofThousands
NTD of NTD
! !
Item Item at January
BalanceBalance at January in the period
1, 2018 1, 2018 IncreasedIncreased in the period Decreased inDecreased Balance at December
the periodin the period Balance31,
at 2018
December 31, 2018 Note Note
Accumulated Ǻ
depreciationǺ
LOYL $ $ $
457,302 457,302 $ 121,519 $
121,519 $ - $ - $ 578,821 578,821
LOYL
LUCD 472,015 119,874 - 591,889
LUCD 472,015 119,874 - 591,889
LOGC 560,257 125,146 - 685,403
LOGC 560,257 125,146 - 685,403
LIVN 571,243 128,079 - 699,322
LIVN 571,243 128,079 - 699,322
LBRA 631,883 127,312 - 759,195
LBRA 631,883 127,312 - 759,195
LUNR 372,032 124,957 - 496,989
LUNR 372,032 124,957 - 496,989
LYRC 337,860 124,678 - 462,538
LYRC 337,860 124,678 - 462,538
PRM T 440,285 67,044 - 507,329
PRM T
PRBT 372,400 440,285 59,522 67,044 - - 431,922 507,329
PRBT
PRSP 343,555 372,400 57,076 59,522 - - 400,631 431,922
Y
BLMPRSP 8,024 343,555 43,855 57,076 - - 51,879 400,631
BLM Y
BLOM - 8,024 19,832 43,855 - - 19,832 51,879
Y
BEMBLOM - - 25,459 19,832 - - 25,459 19,832
BASS
BEM Y - - 36,565 25,459 - - 36,565 25,459
BEFT
BASS - - 21,565 36,565 - - 21,565 36,565
BORD
BEFT - - 583 21,565 - - 583 21,565
BEDY - 29,308 - 29,308
BORD - 583 - 583
BENG - 9,521 - 9,521
BEDY - 29,308 - 29,308
$ 4,566,856 $ 1,241,895 $ - $ 5,808,751
BENG - 9,521 - 9,521
Net Amount $ 20,747,537 $ 28,052,733
$ 4,566,856 $ 1,241,895 $ - $ 5,808,751
Net Amount $ 20,747,537 $ 28,052,733
~98~
~98~
2018 Annual Report

Statement of accounts payable
December 31, 2018
In Thousands of NTD
!
Client Name Description Amount Footnote
Non-related parties
CMA CGM S.A. $ 495,961
Orient Overseas Containers
200,956
Line Limited
COSCO Shipping Lines Co., Ltd. 542,297
Estimated expense payable 1,939,251

The amount of individual client
Others 1,007,074
included in others does not
Add: Unrealised gains or losses 198,147 exceed 5% of the account
4,383,686 balance.
Related parties
Taiwan Terminal Services Co., Ltd. 79,666
Evergreen International Storage and Transport Corporation 20,660
Everport Terminal Services Inc. 68,256
GREENCOMPASS MARINE S.A. 20,659
Others 4,590 The amount of individual client
193,831 included in others does not
exceed 5% of the account
$ 4,577,517
balance.
~99~
405

Statement of other payables
December 31, 2018
In Thousands of NTD
Other payables $ 638,420

Accrued expenses 170,815
Interest payable 114,971
Payable on equipment 4,430
$ 928,636
(blank part below)
~100~
406
2018 Annual Report

Statement of other current liabilities
December 31, 2018
In Thousands of NTD

Agency accounts 1) Agency accounts are translated into
Evergreen Shipping Agency $ 441,655 the functional currency at the dates
(America) Corporation of the transactions and retranslated
at the exchange rates prevailing at
Evergreen Shipping Agency 185,565
the balance sheet date. Exchange
(Japan) Corporation
differences arising upon re-
PT.Evergreen Shipping 101,153 translation at the balance sheet date
Agency Indonesia are recognised in profit or loss.
Evergreen International 87,295
Corportion
Others 231,569 2) The amount of individual client
1,047,237 included in others does not exceed
5% of the account balance.
Shipowner's accounts Evergreen Marine 996,627

(Singapore) Pte Ltd.
Evergreen Marine
(Hong Kong) Ltd. 613,053
1,609,680
Unearned Receipts Ship rental income and

Base station revenue 36
Receipts under custody Withholding tax 7,467
Long-term liabilities -
current portion 6,376,400
$ 9,040,820
~101~
407
408
Evergreen
Evergreen
EvergreenMarine
Marine
MarineCorporation
Corporation
Corporation(Taiwan)
(Taiwan) Ltd.
(Taiwan)Ltd.
Ltd.
Statement
Statementof
Statement corporatebonds
ofofcorporate
corporate payable
bondspayable
bonds payable
December
December31,
December 2018
31,2018
31, 2018
In
In
InThousands
Thousands
Thousandsof
of NTD
ofNTD
NTD
Amount
Amount
Amount
Unamortised
Unamortised
Unamortised
Issuance
Issuance
Issuance Interest
Interest
Interest Rate
Rate
Rate Balance
Balance
Balance atatat Premiums
Premiums
Premiums
Bonds
Bonds
Bonds Name
Name
Name Trustee
Trustee
Trustee Date
Date
Date Payment
Payment
PaymentDate Date
Date (%)(%)
(%) Total
Total Amount
TotalAmount
Amount Repayment
Repayment paid
Repaymentpaid December
paid December
December31,31,
31,20182018 (Discounts)
2018 (Discounts) Book
(Discounts) Book
BookValue
Value
Value Repayment
Repayment
Repayment Collateral
Collateral Footnote
Collateral Footnote
Footnote
Thirteenth
Thirteenth
Thirteenth domestic
domestic
domestic
Bank
Bank Of
OfOf
secured
secured
secured corporate Bank
corporate
corporate 106.04.25
106.04.25
106.04.25 111.04.25
111.04.25
111.04.25 1.05
1.05
1.05$$ $ 8,000,000
8,000,000
8,000,000$$ $ -- - $$ $ 8,000,000
8,000,000
8,000,000 $$ $ 8,000,000
-- - $$$ 8,000,000
8,000,000 Note
Note
Note111 Yes
Yes
Yes Note
Note
Note222
Taiwan
Taiwan
Taiwan
bonds
bonds
bonds
Fourteenth
Fourteenth
Fourteenth domestic
domestic
domestic Bank
Bank
Bank Of
OfOf
secured
secured corporate
secured corporate
corporate 107.06.27
107.06.27 112.06.27
112.06.27
112.06.27 0.86
0.86
0.86 2,000,000
2,000,000
2,000,000 -- - 2,000,000
2,000,000
2,000,000 -- - 2,000,000
2,000,000
2,000,000 Note
Note
Note333 Ƀ
ɃɃ Note
Note
Note444
Taiwan 107.06.27
Taiwan
Taiwan
bonds
bonds
bonds
Less:
Less:
Less: current
current
current portion
portion
portion -- -
Non-current
Non-current
Non-current portion
portion
portion 10,000,000
$$$10,000,000
10,000,000
Note
Note
Note 1ǺExcept
1ǺExcept
1ǺExcept for
forfor conversion,
conversion,
conversion, proceeds
proceeds
proceeds and
andand redemption,
redemption,
redemption, halfhalf
half the
thethe principal
principal
principal of
ofof
thethe
the Bond
Bond
Bond must
must
must be
bebe paid
paid
paid atatat
thethe
the end
end
end of
ofofthethe
the fourth
fourth
fourth year,
year,
year, and
and
and another
another
another half
half
halfatatatthe
the
thematurity
maturity date.
maturitydate.
date.
Please
Please
Please refer
refer
refer to to
toNoteNote
Note 6(12)
6(12)
6(12)for
forfor details
details
details of of principal
ofprincipal
principal repayment
repayment
repayment andand
and interest
interest
interest payment.
payment.
payment.
Note
Note
Note 2ǺThe
2ǺThe
2ǺThe BondsBonds
Bonds are
areare secured
secured
secured and
andand
are
areare guaranteed
guaranteed
guaranteed by
byby
Hua
HuaHuaNanNan
Nan Bank,
Bank,
Bank, First
First
First Bank,
Bank,
Bank, Mega
Mega
Mega International
International
International Commercial
Commercial
Commercial Bank,
Bank,
Bank, Land
Land
Land Bank
Bank
Bank of
ofof Taiwan,
Taiwan,
Taiwan, Chang
Chang
ChangHwa Hwa Bank,
HwaBank,
Bank,
Taiwan
Taiwan
Taiwan Cooperative
Cooperative
Cooperative Bank
Bank
Bank and
andand
BankBank
Bank Sinopac.
Sinopac.
Sinopac.
Note
Note
Note 3ǺExcept
3ǺExcept
3ǺExcept for
forfor conversion,
conversion,
conversion, proceeds
proceeds
proceeds and
andand redemption,
redemption,
redemption, the
thethe principal
principal
principal of
ofof
the
thethe Bonds
Bonds
Bonds shall
shall
shallbe
bebe repaid
repaid
repaid ininin lump
lump
lump sum
sum
sum atatat maturity.
maturity.
maturity.
Please
Please
Please refer
refer
refer to to
toNoteNote
Note 6(12)
6(12)
6(12)for
forfor details
details
details of of principal
ofprincipal
principal repayment
repayment
repayment andand
and interest
interest
interest payment.
payment.
payment.
Note
Note
Note 4ǺThe
4ǺThe
4ǺThe BondsBonds
Bonds are
areare secured
secured
secured and
andand
are
areare guaranteed
guaranteed
guaranteed by
byby First
First
First Commercial
Commercial
Commercial Bank.
Bank.
Bank.
~102~
~102~
~102~
Evergreen
Evergreen
Evergreen Marine
Marine
Marine Corporation
Corporation
Corporation (Taiwan)
(Taiwan)
(Taiwan) Ltd.Ltd.
Ltd.
Statement
Statement
Statement of long-term
long-term
ofoflong-term loans
loans
loans
December
December
December 31, 31,
31,20182018
2018
In Thousands
InInThousands
ThousandsofofNTDNTD
ofNTD
!! !
Creditor
Creditor
Creditor Description
Description
Description Amount
Amount
Amount T erm
TTerm
erm of Contract
ofofContract
Contract Rat Rat
Rate(%)e(%)
e(%) Collateral
Collateral
Collateral Footnote
Footnote
Footnote
Long-term
Long-term
Long-termbank
bankbank
loansloans
Ǻ
loans Ǻ Ǻ
Bank
BankBank of T aiwan
ofofTTaiwan
aiwan Secured
Secured
Securedbankbank
bank loans
loans
loans $$ $ 1,900,000
1,900,000
1,900,000 104.12.28~109.12.28
104.12.28~109.12.28
104.12.28~109.12.28 Minsheng
Minsheng
Minsheng Building
Building
Building
Bank
BankBank of T aiwan
ofofTTaiwan
aiwan Ƀ
Ƀ Ƀ 803,031
803,031
803,031 102.11.19~111.11.19
102.11.19~111.11.19
102.11.19~111.11.19 Loading
Loading
Loadingandand
and unloading
unloading
unloading equipment
equipment
equipment
Bank
BankBank of T aiwan
ofofTTaiwan
aiwanand and
andotherother
otherbanksbanks
banks Ƀ
Ƀ Ƀ 1,977,930
1,977,930
1,977,930 103.01.15~112.10.14
103.01.15~112.10.14
103.01.15~112.10.14 Ships
Ships
Ships
Bank
BankBank of T aiwan
ofofTTaiwan
aiwanand and
andotherother
otherbanksbanks
banks Ƀ
Ƀ Ƀ 2,108,122
2,108,122
2,108,122 104.01.09~112.10.14
104.01.09~112.10.14
104.01.09~112.10.14 Ƀ
ɃɃ
Bank
BankBank of T aiwan
ofofTTaiwan
aiwanand and
andotherother
otherbanksbanks
banks Ƀ
Ƀ Ƀ 2,061,978
2,061,978
2,061,978 104.04.15~112.10.14
104.04.15~112.10.14
104.04.15~112.10.14 Ƀ
ɃɃ
Bank
BankBank of T aiwan
ofofTTaiwan
aiwan Ƀ
Ƀ Ƀ 307,168
307,168
307,168 105.03.28~116.03.28
105.03.28~116.03.28
105.03.28~116.03.28 Ƀ
ɃɃ
Land
LandLand
Bank
BankBank of T aiwan
ofofTTaiwan
aiwan Ƀ
Ƀ Ƀ 284,771
284,771
284,771 105.09.23~115.03.28
105.09.23~115.03.28
105.09.23~115.03.28 Ƀ
ɃɃ
First
FirstFirst Commercial
Commercial
Commercial Bank
Bank Bank Ƀ
Ƀ Ƀ 1,525,941
1,525,941
1,525,941 102.04.22~114.04.22
102.04.22~114.04.22
102.04.22~114.04.22 Ƀ
ɃɃ Including
Including
Including foreign
foreign
foreign loans
loans
loans
Hua Hua
HuaNan Nan Commercial
NanCommercial
CommercialBankBank
Bank Ƀ
Ƀ Ƀ 866,850
866,850
866,850 107.08.31~114.06.28
107.08.31~114.06.28
107.08.31~114.06.28 Ƀ
ɃɃ
Hua Hua
HuaNan Nan Commercial
NanCommercial
CommercialBankBank
Bank Ƀ
Ƀ Ƀ 1,796,349
1,796,349
1,796,349 101.01.04~115.03.20
101.01.04~115.03.20
101.01.04~115.03.20 Ƀ
ɃɃ Including
Including
Including foreign
foreign
foreign loans
loans
loans
Chang
Chang
ChangHwa
HwaHwa Commercial
Commercial
CommercialBankBank
Bank Ƀ
Ƀ Ƀ 935,804
935,804
935,804 107.08.31~114.03.31
107.08.31~114.03.31
107.08.31~114.03.31 Ƀ
ɃɃ
Chang
Chang
ChangHwa
HwaHwa Commercial
Commercial
CommercialBankBank
Bank Ƀ
Ƀ Ƀ 947,504
947,504
947,504 107.11.30~114.09.28
107.11.30~114.09.28
107.11.30~114.09.28 Ƀ
ɃɃ
Cathay
Cathay
Cathay United
United
UnitedBankBank
Bank Ƀ
Ƀ Ƀ 844,404
844,404
844,404 105.09.23~114.12.28
105.09.23~114.12.28
105.09.23~114.12.28 Ƀ
ɃɃ
Mega
MegaMega International
International
Commercial
CommercialBank
BankBank
1,314,276
1,314,276
1,314,276 101.10.22~108.10.22
101.10.22~108.10.22
101.10.22~108.10.22 Including
Including
Including foreign
foreign
foreign loans
loans
loans
and other banks Ƀ
Ƀ Ƀ Ƀ
ɃɃ
and
andother
otherbanks
banks
Mega
MegaMega International
International
Commercial
CommercialBank
BankBank
1,401,261
1,401,261
1,401,261 102.04.30~109.04.30
102.04.30~109.04.30
102.04.30~109.04.30 Including
Including
Including foreign
foreign
foreign loans
loans
loans
and other banks Ƀ
Ƀ Ƀ Ƀ
ɃɃ
and
andother
otherbanks
banks
Bank
BankBank of China
ofofChina
China Ƀ
Ƀ Ƀ 924,421
924,421
924,421 105.06.29~115.06.29
105.06.29~115.06.29
105.06.29~115.06.29 Ƀ
ɃɃ
Bank of China 922,206 107.04.19~115.06.29
Bank
BankofofChina
China Ƀ
Ƀ Ƀ 922,206
922,206 107.04.19~115.06.29
107.04.19~115.06.29 Ƀ
ɃɃ
SinoPac 873,911 107.04.17~114.03.02
Bank
BankBank
SinoPac
SinoPac Ƀ
Ƀ Ƀ 873,911
873,911 107.04.17~114.03.02
107.04.17~114.03.02 Ƀ
ɃɃ
TThe T he Export-Import
heExport-Import
Export-ImportBank Bank
Bank of the
ofofthe
the 783,120
783,120
783,120 107.04.20~115.04.20
107.04.20~115.04.20
107.04.20~115.04.20
Republic of China Ƀ
Ƀ Ƀ Ƀ
ɃɃ
Republic
RepublicofofChina
China
Bank
BankBank of China
ofofChina
China Unsecured
Unsecured
Unsecuredbankbank
bank loans
loans
loans 580,000
580,000
580,000 107.02.23~109.02.23
107.02.23~109.02.23
107.02.23~109.02.23 None
None
None
T
TTaipei aipei
aipeiStar Star
StarBank
BankBank
Ƀ Ƀ Ƀ 200,000
200,000
200,000 107.01.23~110.01.23
107.01.23~110.01.23
107.01.23~110.01.23 ɃɃɃ
Chinatrust Commercial Bank Ƀ 1,000,000 106.03.31~109.03.31 Ƀ
Chinatrust
ChinatrustCommercial
CommercialBank
Bank Ƀ
Ƀ 1,000,000
1,000,000 106.03.31~109.03.31
106.03.31~109.03.31 Ƀ
Ƀ
Bank of T aiwan Ƀ 1,987,500 104.03.25~109.12.28 Ƀ
Bank
BankofofTTaiwan
aiwan Ƀ
Ƀ 1,987,500
1,987,500 104.03.25~109.12.28
104.03.25~109.12.28 Ƀ
Ƀ
Jih Sun International Bank Ƀ 500,000 107.07.02~110.03.29 Ƀ
Jih
JihSun
SunInternational
InternationalBank
Bank Ƀ
Ƀ 500,000
500,000 107.07.02~110.03.29
107.07.02~110.03.29 Ƀ
Ƀ
~103~
~103~
~103~
2018 Annual Report
409
410
Evergreen
Evergreen Marine
Marine Corporation
(Taiwan) Ltd.
Ltd.
Statement
Statement of long-term
of long-term loans
loans (continue)
(continue)
December
2018
InInThousands NTD
ThousandsofofNTD
! !
Creditor
Creditor Description
Description Amount
Amount T erm
T erm of of Contract
Contract RatRat e(%)
e(%) Collateral
Collateral Footnote
Footnote
Yuanta
Yuanta Commercial
Commercial Bank
Bank (Previous
(Previous
name
name referrefer T a Chong
to Ttoa Chong Commercial
Commercial Unsecured
Unsecured bank
bank loans
loans $ $ 1,500,000
1,500,000 107.05.30~112.05.30
107.05.30~112.05.30 None
None
Bank)
Bank)
E.Sun
E.Sun Commercial
Commercial Bank
Bank ɃɃ 300,000
300,000 107.07.26~110.07.26
107.07.26~110.07.26 ɃɃ
Agricultural
Agricultural Bank
Bank T aiwan
of Tofaiwan ɃɃ 1,200,000
1,200,000 104.12.29~109.12.29
104.12.29~109.12.29 ɃɃ
Land
Land Bank
Bank T aiwan
of Tofaiwan ɃɃ 1,600,000
1,600,000 104.12.28~109.11.23
104.12.28~109.11.23 ɃɃ
O-Bank
O-Bank ɃɃ 1,000,000
1,000,000 105.05.24~110.05.24
105.05.24~110.05.24 ɃɃ
T aiwan
T aiwan Business
Business Bank
Bank ɃɃ 1,000,000
1,000,000 107.12.20~112.12.20
107.12.20~112.12.20 ɃɃ
Cathay
Cathay United
United Bank
Bank ɃɃ 1,500,000
1,500,000 107.12.12~112.12.12
107.12.12~112.12.12 ɃɃ
T aiwan
T aiwan Cooperative
Cooperative Bank
Bank ɃɃ 500,000
500,000 105.12.12~110.12.12
105.12.12~110.12.12 ɃɃ
he Export-Import
T heTExport-Import BankBank of the
of the
ɃɃ 500,000
500,000 107.09.28~110.09.28
107.09.28~110.09.28 ɃɃ
Republic
Republic of China
of China
T aishin
T aishin International
International BankBank Commercial
Commercial paper
paper 2,550,000
2,550,000 105.08.26~112.05.15
105.08.26~112.05.15 ɃɃ
Chang
Chang HwaHwa Commercial
Commercial Bank
Bank Container
Container secured
secured bank
bank loans
loans 766,882
766,882 107.02.09~114.02.09
107.02.09~114.02.09 ɃɃ
T aiwan Cooperative Bank 612,000
612,000 103.05.20~110.05.20
T aiwan Cooperative Bank ɃɃ 103.05.20~110.05.20 ɃɃ
39,875,429
39,875,429 1.13-3.79
1.13-3.79
Add:Add: Unrealised
Unrealised losses
losses 223,179
223,179
Less: Deferred expenses - hosting
Less: Deferred expenses - hosting fee fee credit
credit ( ( 13,417)
13,417)
40,085,191
40,085,191
Less: current portion ( ( 6,376,400)
6,376,400)
Less: current portion
Non-current portion $ $ 33,708,791
33,708,791
Non-current portion
~104~
~104~
Evergreen
EvergreenMarineMarineCorporation
Corporation(Taiwan)
(Taiwan)Ltd.
Ltd.
Statement
Statementofoflabor,
labor,depreciation
depreciationand
andamortisation
amortisationby
byfunction
function
For
Forthetheyear
yearended
endedDecember
December31,31,2018
2018
InInThousands
ThousandsofofNTD
NTD
By
ByFunction
Function Year
Yearended
endedDecember
December31, 31,2018
2018 Year
Yearended
endedDecember
December31, 31,2017
2017
Classified
Classifiedasas Classified
Classifiedasas
Total
Total Total
Total
By
ByNature
Nature Operating
OperatingCosts
Costs Operating
OperatingExpenses
Expenses Operating
OperatingCosts
Costs Operating
OperatingExpenses
Expenses
Employee
Employeebenefit
benefitexpense
expense
ǳWages
ǳWagesand
andsalaries
salaries $$ 660,115
660,115 $ $ 1,080,419
1,080,419 $ $ 1,740,534
1,740,534 $ $ 556,974
556,974 $ $ 1,332,189
1,332,189 $ $ 1,889,163
1,889,163
ǳLabor
ǳLaborand
andhealth
healthinsurance
insurancefees
fees 41,050
41,050 90,804
90,804 131,854
131,854 31,615
31,615 81,158
81,158 112,773
112,773
ǳPension
ǳPensioncosts
costs 28,191
28,191 55,250
55,250 83,441
83,441 23,906
23,906 60,721
60,721 84,627
84,627
ǳDirectors'
ǳDirectors'remuneration
remuneration -- 9,303
9,303 9,303
9,303 -- 20,091
20,091 20,091
20,091
ǳOther
ǳOtherpersonnel
personnelexpenses
expenses 42,180
42,180 49,954
49,954 92,134
92,134 31,723
31,723 43,711
43,711 75,434
75,434
Depreciation
Depreciationexpenses
expenses 1,996,682
1,996,682 36,279
36,279 2,032,961
2,032,961 1,706,411
1,706,411 46,228
46,228 1,752,639
1,752,639
Amortisation
Amortisationexpenses
expenses 10,323
10,323 10,249
10,249 20,572
20,572 12,687
12,687 6,904
6,904 19,591
19,591
Note:
Note:As
AsofofDecember
December31,
31,2018
2018and
and2017,
2017,the
theCompany
Companyhad
had1,776
1,776and
and1,600
1,600employees,
employees,respectively.
respectively.There
Therewere
were7 7non-employee
non-employeedirectors
directorsfor
forboth
bothyears.
years.
~105~
~105~
2018 Annual Report
411
412
Evergreen Marine
Evergreen
Corporation
Evergreen Marine
Evergreen
Marine (Taiwan)
Corporation
Marine
CorporationLtd.
Corporation
(Taiwan)
(Taiwan) Ltd.
Ltd. (Taiwan) Ltd.
Loans to othersLoans
Loans totoothers
others
Loans to others
For the
For the
For the year ended year
Decemberended
ended
year For theDecember
31,December
year 31,
2018ended31, 2018
December
2018 31, 2018
e1 Table 1 Table
Table 11 Expressed thousands of
ExpressedininExpressed
thousands of NTD
inExpressed
NTD
thousandsinofthousands
NTD of NTD
(Except otherwise
(Exceptasasotherwise
(Except indicated)
indicated)
as otherwise
(Except as
indicated)
Collateral
Is a Maximum outstanding balance Amount of Allowance for Collateral Collateral Collateral Ceiling on total
Number General
Is a ledger
Maximum
Is a outstanding
Maximum
Is a balance
outstanding
Maximum balance Balance at December Actual amount
outstanding balance loan
Nature ofAmount of Amount of Amount Reason for
of short-term
Allowance forAllowance for Allowance for Limit on loans granted to a Ceiling on total Ceiling on total
Ceiling on total
ber Number Number Creditor Borrower
General ledger
General ledgerGeneral ledgerrelated during the year ended December
Balance at December
Balance at Actual
December
Balance
amount
at December
Actual amount Interest
ActualNature
amountrate
of loanNature of loan transactions
Nature of loan
Reason
with for short-term
Reason for short-term
Reason fordoubtful
short-term Limit on loansLimit
granted
on loans
to aLimit loans
granted granted
on loans
to a granted Footnote
to a
Creditor (Note 1)
Creditor Borrower
Creditor Borrower Borrower account (Note
related during
related
2) the year
during
ended
related
the
December
year
during
ended
theDecember
year ended 31, 2018 (Note 8)
December drawn down
Interest rate Interest rate (Note 4)
transactions
Interest rate with
transactions financing
transactions
with with
(Note 6) doubtful doubtful doubtful single party (Note 7) loans granted loansFootnote Footnote
grantedloans granted Footnote
te 1) (Note 1) (Note 1) account (Noteaccount
2) (Note
account
2) (Note 2)party 31, 2018 (Note
31, 2018
3) (Note31,8)2018 (Note
drawn
31, 8)
2018
down(Note
drawn8) downdrawn down(Note 4) (Note 4) borrower
(Note 4)(Note 5)
financing (Note
financing
6) (Note
financing
6) accounts
(Note 6) Item Value single party (Note
single7)party (Note
single(Note
7)
party7)(Note 7)
party party
31, 2018 (Note
party
31,3)2018 (Note
31, 3)
2018 (Note 3) borrower (Note borrower
5) (Note
borrower
5) (Note 5) accounts accounts
Item accounts
Value
Item Value
Item Value (Note 7) (Note 7) (Note 7)
Peony Investment Luanta Investment Receivables from 3.4149~ Working capital

1 Yes $ 76,426 $ 43,055 $ 43,055 2 $ - $ - None $ - $ 5,778,585 $ 14,446,463
Peony Investment
Luanta
Peony
Investment
Investment (Netherlands)
Luanta Investment
Receivables N.V.
Luanta Investment
from related
Receivables parties
Receivables
from from 3.4149~ 3.6056
3.4149~ 3.4149~ requirement
Working capital
Working capital
Working capital
1 1 1 Yes $ Yes $ Yes 76,426
$ $ 76,426 43,055
$ 76,426$ $43,055
43,055
$ 43,05543,055
$ 43,055
2 $ 2 $2- $ - - $ $- None $ -$ None - $ 5,778,585
- $ - $ None $ 14,446,463
- $ $5,778,585 5,778,585
$ 14,446,463
$ 14,446,463
S.A. S.A. (Netherlands)
S.A. (Netherlands)
N.V. related
(Netherlands)
N.V.partiesrelated
N.V. parties
related parties 3.6056 3.6056 3.6056 requirement requirement requirement
Peony Investment Receivables from 3.3149~ Working capital
1 Clove Holding Ltd. Yes 712,103 707,331 618,145 2 - - None - 11,557,170 14,446,463
S.A. related parties 3.6038 requirement
Peony Investment
Peony Investment
Peony Investment Receivables from Receivables Receivables
from from 3.3149~ 3.3149~ 3.3149~ Working capital
Working capital
Working capital
1 1 1 Clove HoldingClove
Ltd. Holding
Clove
Ltd.Holding Ltd. Yes Yes Yes 712,103 712,103 707,331
712,103 707,331
618,145
707,331
618,145 618,145
2 2 2- - - - None - -
None - - 11,557,170
None - 11,557,170
14,446,463
11,557,170
14,446,463 14,446,463
S.A. S.A. S.A. related partiesrelated parties
related parties 3.6038 3.6038 3.6038 requirement requirement requirement
Whitney Equipment Receivables from Working capital
2 Clove Holding Ltd. Yes 92,883 92,261 92,261 3.3981 2 - - None - 1,101,187 1,376,484
LLC. related parties requirement
Whitney Equipment
Whitney Equipment
Receivables
Whitney Equipment
from
Receivables Receivables
from from Working capital
Working capital
Working capital
2 2
Clove Holding
Clove
Ltd.2Holding
Clove
92,883 92,261
92,26192,26192,261
3.3981 92,261
3.3981
2 3.3981
2 2- - - - None - -
None - -
None 1,101,187
- 1,101,187
1,376,484
1,101,187
1,376,484 1,376,484
LLC. LLC. related
LLC. partiesrelated parties
related parties requirement requirement requirement
Colon Container Receivables from 3.4149~ Working capital
2 Clove Holding Ltd. Yes 371,532 369,042 295,234 2 - - None - 550,594 1,376,484
Terminal S.A. related parties 3.6063 requirement
Colon Container
Colon Container
Receivables
Colon Container
from
Working capital
Working capital
2 2
Clove Holding
Clove
Ltd.2Holding
Clove
371,532 369,042
295,234
369,042
295,234 295,234
2 2 2- - - - None - -
None - -
None 550,594
- 550,594
1,376,484
550,594
1,376,484 1,376,484
Terminal S.A.Terminal
Evergreen related
Marine S.A.Terminal
Colon parties
S.A.
Containerrelated parties
related parties
Receivables from 3.6063 3.6063
3.1694~ 3.6063 requirement requirement
Working capital requirement
3 Yes 83,595 83,034 66,428 2 - - None - 929,558 1,859,117
(Hong Kong) Ltd. Terminal S.A. related parties 3.5794 requirement
Evergreen Marine
Evergreen
Colon
Marine
Evergreen
Container
Colon
MarineContainer
Receivables
Colon Container
from
Working capital
Working capital
3 3 3 Yes Yes Yes 83,595 83,595 83,034
83,595 83,034
66,42883,03466,428 66,428
2 2 2- - - - None - -
None - -
None 929,558
- 929,558
1,859,117
929,558
1,859,117 1,859,117
(Hong Kong)(Hong
Ltd. Terminal
Note 1:Kong) Ltd.S.A.
The (Hong
numbersKong)
Terminal
filled Ltd. related
Terminal
in forS.A.
the S.A.
loanspartiesrelated
provided parties
by the Company
relatedorparties
subsidiaries are as follows 3.5794 3.5794 3.5794 requirement requirement requirement
1: The numbers
Note 1: The
filledNote
numbers
in for
1: (2)The
the
The
filled
loans subsidiaries
numbers
in provided
for the
filledare
loans
by
innumbered
the
for
provided
Company
the loansorder
inby starting
provided
the
or subsidiaries
Company byfrom
the ‘1’.
orare
Company
subsidiaries
as follows
or subsidiaries
are as follows
are as follows
(1)The Company
(1)TheisNote
‘0’.
Company
2: (1)The
Fill inisthe name of account
Company
‘0’. is ‘0’. in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.
(2)The subsidiaries
(2)TheNote
are Fill in the
subsidiaries
numbered
3: (2)The subsidiaries
are
inmaximum
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numbered outstanding
starting
areinnumbered
order balance
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‘1’. of loans
in order
from starting
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fromduring
‘1’. the year ended December 31, 2018
2: Fill inNote
the name Note
2: Fillofin
Note 4:
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in of
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inofwhich
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aresuch
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as receivables–related
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current
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stockholders,
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withaccount
stockholders,
prepayments,
with stockholders,
prepayments,
temporary payments,
prepayments,
temporary
etc.payments,
temporaryetc.
payments, etc.
Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period.
3: Fill inNote
the maximum
3: Fill in
Note
the
outstanding
3:
maximum
Fill in the
balance
outstanding
maximum
of loans
balance
outstanding
to others
of loans
balance
during
to others
the
of loans
year
during
ended
to others
the
December
year
during
ended
the
31,December
year
2018ended31,
December
2018 31, 2018
Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.
4: The column
Note 4:of‘Nature
The Note
column
of
4: loan’
The
of‘Nature
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shall fill
ofof‘Nature
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in 1.‘Business
shalloffillloan’
intransaction’
1.‘Business
shall fill inortransaction’
1.‘Business
2.‘Short-term
or
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2.‘Short-term
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or 2.‘Short-term
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Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company’s “Procedures for Provision of Loans”, and state each individual party to which the loans have been provided and
5: Fill inNote
the amount
5: Fill in
Note
ofthe
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5:
amount
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transactions
of
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amountwhen
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related
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in the
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the current period.
the calculation for ceiling on total loans granted in the footnote.
6: Fill inNote
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6: Fillof
nature
inloan
purpose
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when
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ofnature
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ofshort-term
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offor
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ofrepayment
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ofacquisition
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of loan,ofacquisition
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capital,
ofworking
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etc. capital,
working
etc. capital, etc.
1. According to the Company's credit policy, the total amount of loans granted to a single company should not exceed 20% of the net worth stated in the latest financial statements.
7: Fill inNote
limit7:onFill
loansNote
in limit
granted
7:on
Fillloans
toinalimit
single
granted
onparty
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granted
single
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total
PEONYǺUSD 939,500*30.7535*20%=5,778,585
ceiling
loans
partyon
granted
and
total
ceiling
loans
as prescribed
ongranted
total loans
as
in prescribed
the
granted
creditor
asincompany’s
prescribed
the creditor
in
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company’s
the creditorfor
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company’s
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for
of Loans”,
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and
for
ofstate
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eachand
individual
of Loans”,
state each
party
and
individual
state
to which
eachparty
the
individual
loans
to which
have
party
the
been
to
loans
which
provided
have
thebeen
loans
and provided
have been
andprovided and
the calculationthe
forcalculation
ceiling on for
total
calculation
ceiling
theClove loans on
granted
Holdingfor
total
ceiling
loans
in the
Ltd.烉USD ongranted
footnote.
total loans
in the
granted
footnote.
in the footnote.
89,517*30.7535*20%=550,594
1. According 1.
to According
the Company'sAccording
thecredit
Company's
1.toEvergreen policy,
to thecredit
Marine the
Company's
total
(Hong policy,
amount
Kong) credit
the of
total
policy,
loans
Ltd.烉USD amount
granted
the total
of loans
toamount
a single
granted
ofcompany
loans
to a granted
151,130*30.7535*20%=929,558 single
should
company
tonot
a single
exceed
should
company
20%
notof
exceed
should
the net20%
not
worth
exceed
of the
stated
net
20%in
worth
the
of the
latest
stated
netfinancial
worth
in the stated
latest
statements.
financial
in the latest
statements.
PEONYǺUSD
PEONYǺUSD The Company 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements.
939,500*30.7535*20%=5,778,585
PEONYǺUSD
939,500*30.7535*20%=5,778,585
held939,500*30.7535*20%=5,778,585
Clove HoldingClove
Ltd.烉USD PEONYǺUSD
Holding
Clove
89,517*30.7535*20%=550,594
Ltd.烉USD
Holding 939,500*30.7535*40%=11,557,170
Ltd.烉USD
89,517*30.7535*20%=550,594
89,517*30.7535*20%=550,594
Evergreen Marine
Evergreen
(Hong According
2.Marine
Kong)
Evergreen to
(Hong the
Ltd.烉USD
MarineCompany's
Kong)(Hong policy, the total
151,130*30.7535*20%=929,558
Ltd.烉USD
Kong)
credit Ltd.烉USD amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements.
151,130*30.7535*20%=929,558
151,130*30.7535*20%=929,558
The CompanyThe
heldCompany
100%Clove
The Holding
voting
held
Company
100%
shares Ltd.烉USD
voting
directly
held 100%
shares
and89,517*30.7535*40%=1,101,187
voting
indirectly
directly
shares
and
in foreign
indirectly
directlycompany,
and
in indirectly
foreign
thatcompany,
the
in foreign
total amount
that
company,
the of
total
loans
that
amount
granted
the total
of loans
toamount
a single
granted
ofcompany
loans
to a granted
single
should
company
tonot
a single
exceed
should
company
40%
not of
exceed
should
the net40%
not
worth
exceed
of the
stated
net
40%in
worth
the
of the
latest
stated
net financial
worth
in the stated
latest
statements.
in
financial
the latest
statements.
Evergreen Marine (Hong Kong) Ltd.烉USD 151,130*30.7535*40%=1,859,117
PEONYǺUSD
PEONYǺUSD
939,500*30.7535*40%=11,557,170
PEONYǺUSD
939,500*30.7535*40%=11,557,170
939,500*30.7535*40%=11,557,170
The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements.
2. According 2.toAccording
the Company's
2.to
According
thecredit
Company's
policy,
to thecredit
the
Company's
total
policy,
amount
credit
the of
total
policy,
loans
amount
granted
the total
of loans
should
amount
granted
notofexceed
loans
should
granted
40%
not of
exceed
should
the net40%
not
worth
exceed
of the
stated
net
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in
worth
the
of the
latest
stated
netfinancial
worth
in the stated
latest
statements.
financial
in the latest
statements.
PEONYǺUSD 939,500*30.7535*50%=14,446,463
Clove HoldingClove
Ltd.烉USD
Holding
Clove
89,517*30.7535*40%=1,101,187
Ltd.烉USD
Holding Ltd.烉USD
89,517*30.7535*40%=1,101,187
89,517*30.7535*40%=1,101,187
Evergreen Marine
Evergreen
(HongMarine
Kong)
Evergreen
(Hong
Ltd.烉USD
Marine
Kong)(Hong
151,130*30.7535*40%=1,859,117
Ltd.烉USD
Kong) Ltd.烉USD
151,130*30.7535*40%=1,859,117
151,130*30.7535*40%=1,859,117
Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in accordance with Article 14, Item 1 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies” should be included in its published balance of loans to others
The CompanyThe
heldCompany
100% The
voting
held
Company
100%
shares voting
directly
held 100%
shares
and voting
indirectly
directly
shares
and
in foreign
indirectly
directlycompany,
and
in indirectly
foreign
thatcompany,
the
in foreign
total amount
that
company,
the of
total
loans
that
amount
granted
the total
of loans
should
amount
granted
notofexceed
loans
should
granted
50%
notof
exceed
should
the net50%
not
worth
exceed
of the
stated
net
50%in
worth
the
of the
latest
stated
net financial
worth
in the stated
latest
statements.
in
financial
the latest
statements.
at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public company has authorized the
PEONYǺUSD PEONYǺUSD
939,500*30.7535*50%=14,446,463
Chairman PEONYǺUSD
to 939,500*30.7535*50%=14,446,463
loan 939,500*30.7535*50%=14,446,463
funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”, the published balance of loans to others at the end of the reporting period should also include
Clove HoldingClove lines of
Ltd.烉USD
theseHolding loaning
Clove approved by the Board
89,517*30.7535*50%=1,376,484
Ltd.烉USD
Holding Ltd.烉USD of Directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration that they could be loaned again thereafter.
89,517*30.7535*50%=1,376,484
89,517*30.7535*50%=1,376,484
8: The amounts
Note 8: The
of funds
Note
amountsto8:be
The
ofloaned
funds
amounts
to
toothers
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to be
have
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company
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inwith
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14,
the “Regulations
Item
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theItem
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ofandEndorsements/Guarantees
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by Public Companies”
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bebalance
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this
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rman to loan
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year
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andyear
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ofand
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ofMaking
Funds and
of Endorsements/Guarantees
Making of Endorsements/Guarantees
by Public Companies”,
by Public Companies”,
thebypublished
Public Companies”,
the
balance
published
of loans
the
balance
published
to others
of loans
balance
at the toend
others
of of
loans
the
at the
to
reporting
others
end ofat
period
thethereporting
end
should
of the
period
also
reporting
include
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also include
should also include
lines of these
loaninglines
approved
ofthese
loaningby
lines
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and
should
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this not
balance
be
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excluded
even
this balance
though
fromthe
this
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though
are even
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for
aretaking
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for
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could
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be loaned
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again thereafter.
Evergreen Marine
Evergreen
Corporation
Marine
Evergreen Evergreen
Corporation
Marine (Taiwan)
Marine
Ltd.
Corporation
(Taiwan) Ltd.(Taiwan) Ltd.
Ltd.
Provision ofProvision
endorsements
Provision endorsements
Provision
ofof endorsementsand
and guarantees guarantees
of endorsements
andto others and
guarantees to others
guarantees
toothers to others
For
For the yearFor thethe
ended year
yearended
Decemberended
For December
December
the
31, year
2018ended 2018
2018
31,December 31, 2018
2 Table 2 Table
Table 2 Expressed
ExpressedinExpressed
inthousands
thousandsinof NTD
ofthousands
Expressed
NTD of
in NTD
thousands of NTD
Ratio of RatioRatio
of of Ratio of
Party
Party being endorsed/guaranteed
endorsed/guaranteed
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beingbeing endorsed/guaranteed accumulated
Outstanding accumulated accumulated accumulated Provision of Provision of
OutstandingOutstanding Outstanding
Maximum outstanding Amount of endorsement/ Provision of Provision ofProvisionProvision
of Provision
ofProvision
of of Provision of
Maximum outstanding
Maximum outstanding
Maximum outstandingendorsement/ Amount of Amount endorsement/
of Amount endorsement/
of Ceiling
endorsement/
on total amount Provision ofProvision of endorsements/
Provision of endorsements/
Limit on endorsements/ endorsement/
endorsement/ Actual amount endorsements/
endorsement/endorsement/ guarantee
Ceiling on total
Ceiling
amount
on total
Ceiling
amountendorsements/
on total amount endorsements/ endorsements/
endorsements/
endorsements/
endorsements/endorsements/
Number Limit on endorsements/
Limit on endorsements/
Limit endorsement/ endorsement/endorsement/
on endorsements/ guarantee amount
Actual amount
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amountActual guarantee
endorsements/
amount guarantee
endorsements/ guarantee
of endorsements/ endorsements/ guarantees by
endorsements/endorsements/ guarantees to the
ber Number Number Endorser/Guarantor amount as of
guarntees provided for a guarantee guarantee amount
guarantee amount
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amountdown guarantees amount to net of endorsements/
of endorsements/ guarantees by parent guarantees by
of endorsements/ guarantees
guarantees
byguarantees
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theby Footnote
to guarantees
the to the
(Note 1)
Endorser/Guarantor
Endorser/Guarantor
Endorser/Guarantor Relationship with
guarntees provided
guarntees
for guarantee
provided
a guarntees amount
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of amount as ofdrawn31,downdrawn guarantees
down drawn amount
guarantees
down net
amount
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to netamount provided
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guarantees
parent byguarantees
parent to parent
subsidiary by parent party in Mainland Footnote Footnote Footnote
e 1) (Note 1) (Note 1) Relationship with with
Relationship withsingle party (Note 3) December at31, 2018
December at31,
December 31,
at December(Note
31,6) secured with to asset of
valueguarantees provided
guarantees company
provided
guarantees to subsidiary
provided subsidiary tosubsidiary
parent party
to parent
subsidiary
Mainland
party
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in Mainland
party in Mainland
Company name Relationship the endorser/
single party single
(Note 3) December
party (Note
single December
3)party 31, 2018
(Note 31,December
2018 31, 2018 2018(Note 6) (Note secured
6) with secured
(Note 6)asset value
with of
asset
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with (Noteof3) company to company
subsidiary company
to subsidiary
company to subsidiary
in China
Company name
Company name the endorser/
Company name the endorser/ endorser/
3) (Note 4) 2018 2018 2018 collateral the endorser/ (Note 3) (Note 3) (Note
(Note 3) 7) company company China China
guarantorthe
(Note 2) (Note 4) (Note 4) (Note 4) (Note 5) the endorser/
collateral collateral the endorser/ the endorser/
collateral (Note 7) (Note 7) (Note 7) company China
(Note 7) (Note 7)
(Note 5) (Note 5) (Note 5) guarantor (Note 7) (Note 7) (Note (Note
7) 7)(Note 7) (Note 7)
guarantor (Note
guarantor
2) (Note guarantor
2) (Note 2)
guarantor
guarantorcompany guarantor
company company company
Evergreen Marine
0 Greencompass Marine S.A. 2 $ 133,688,460 $ 47,652,627 $ 43,599,149 $ 25,800,522 $ - 65.22% $ 167,110,575 Y N N
Evergreen Marine
Evergreen Marine
0 0 Greencompass
Greencompass
Marine S.A.
Greencompass
Marine S.A. Marine
2 S.A. 2$ 133,688,460
$2 133,688,460
$$ 133,688,460
47,652,627
$ 47,652,627
$$ 43,599,149
47,652,627
$ 43,599,149
$ 25,800,522
$ 43,599,149
$ 25,800,522
$ $ 25,800,522
$- -$ 65.22% $ -65.22%167,110,575
$ 65.22% 167,110,575
$ Y
167,110,575Y N Y N N N N N
CorporationCorporation Corporation
Evergreen Marine
0 Peony Investment S.A. 2 133,688,460 154,805 153,768 - - 0.23% 167,110,575 Y N N
Corporation
Evergreen Marine
Evergreen Marine
Evergreen Marine
0 0 Peony Investment
Peony S.A.
Investment
PeonyS.A.
Investment S.A.
2 2 133,688,460
2 133,688,460 133,688,460
154,805 154,805 153,768
154,805153,768 153,768
- - - - - 0.23% - 0.23%167,110,575
0.23%
167,110,575 Y
167,110,575Y N Y N N N N N
Corporation
CorporationCorporation Evergreen Marine
0 Evergreen Marine (UK) Limited 2 133,688,460 38,039,795 34,190,847 29,061,383 - 51.15% 167,110,575 Y N N
Corporation
Evergreen Marine
Evergreen Marine
Evergreen Marine
0 0 Evergreen Marine
Evergreen
(UK)Marine
Limited
Evergreen
(UK) Marine
Limited(UK)
2 Limited2 133,688,460
2 133,688,460 133,688,460
38,039,795 38,039,795
34,190,847
38,039,795
34,190,847
29,061,383
34,190,847
29,061,383 29,061,383
- - 51.15% -51.15%167,110,575
51.15%
167,110,575 Y
167,110,575Y N Y N N N N N
CorporationCorporation Evergreen Marine
Corporation
0 Whitney Equipment LLC. 2 133,688,460 237,641 154,042 149,651 - 0.23% 167,110,575 Y N N
Corporation
Evergreen Marine
Evergreen Marine
Evergreen Marine
0 0 Whitney
Evergreen Equipment
Marine Whitney LLC.
Equipment
WhitneyLLC.
Equipment2 LLC. 2 133,688,460
2 133,688,460 133,688,460
237,641 237,641 154,042
237,641154,042149,651
154,042
149,651 - 149,651 - 0.23% - 0.23%167,110,575
0.23%
167,110,575 Y
167,110,575Y N Y N N N N N
CorporationCorporation
0 Corporation Colon Container Terminal S.A. 6 33,422,115 2,253,961 2,238,855 2,238,855 - 3.35% 167,110,575 N N N
Corporation
Evergreen Marine
Evergreen Marine
Evergreen Marine
0 0 Colon
Evergreen Container
Marine ColonTerminal
Container
Colon
S.A.
Balsam Terminal
Container
S.A.
Investment Terminal
6 S.A.6
(Netherlands) 33,422,115
6 33,422,115 33,422,115 2,238,855
2,253,961 2,253,961 2,238,855
2,253,961 2,238,855
2,238,855
2,238,855 2,238,855
- - 3.35% - 3.35%167,110,575
3.35%
167,110,575 N
167,110,575N N N N N N N N
0
CorporationCorporation Corporation 6 33,422,115 910,253 904,153 881,549 - 1.35% 167,110,575 N N N
Corporation N.V.
Evergreen Marine
Evergreen Marine
Evergreen
Balsam
Evergreen Marine
Investment
Marine Balsam (Netherlands)
Investment
Balsam(Netherlands)
Investment (Netherlands)
0 00 Everport 6 6 2 33,422,115
6 33,422,115 33,422,115
133,688,460 910,253 910,253 904,153
1,745,064 910,253
904,153881,549
1,627,942 904,153
881,549
1,395,973 - 1.35%167,110,575
- 881,549 - - 1.35% 2.44% 1.35%
167,110,575 N
167,110,575 167,110,575
Y N N N
N N NN N N N
N.V.
Corporation N.V. N.V. Terminal Services Inc.
Evergreen Marine
Evergreen Marine
Evergreen Marine
EvergreenMarine Evergreen Marine (Hong Kong)
0 00 Everport Terminal
Everport
Services
Terminal
Everport
Inc.Services
Terminal
Inc. Services
2 Inc.2 2 133,688,460
2 133,688,460 133,688,460
1,745,064 1,745,064
133,688,460 1,627,942
20,878,199 1,745,064
1,627,942
1,395,973
20,691,893 1,627,942
1,395,973
11,295,851 1,395,973
- - 2.44%167,110,575
- - 2.44% 30.96% 2.44%
167,110,575 Y
167,110,575 Y Y
167,110,575 N Y
N N NN N N N
Corporation
CorporationCorporation Corporation Ltd.
Evergreen Marine
Evergreen Marine
Evergreen
Evergreen
Marine
Marine
Evergreen
(Hong
Marine
Evergreen
Kong)(HongMarine
Kong) (Hong Kong)
0 0 2 2 133,688,460
2 133,688,460 133,688,460
20,878,199 20,878,199
20,691,893
20,878,199
20,691,893
11,295,851
20,691,893
11,295,851 11,295,851
- - 30.96% -30.96%167,110,575
30.96%
167,110,575 Y
167,110,575Y N Y N N N N N
Ltd. Ltd. Ltd.
2018 Annual Report
413
414
Evergreen Marine
Evergreen
Corporation
Evergreen Marine
Evergreen
(Taiwan)
Marine Corporation
Marine
Corporation
Ltd.(Taiwan) Ltd.(Taiwan) Ltd.
Ltd.
Provision
Provisionof
Provision of endorsements endorsements
endorsements
ofand
Provision
guarantees and
of and guarantees
guarantees
endorsements
to others to others
to
and others
guarantees to others
For
Forthe
For the year ended the year
year ended
December ended
For December
December
31,the
2018 31,
31,
year ended 2018
2018
December 31, 2018
Table 2 Table
Table 22 Expressed thousands
Expressedininthousands
Expressedof
ofinNTD
NTD
thousands
Expressedof
inNTD
thousands of NTD
Ratio of
Party being endorsed/guaranteed Ratio of Ratio of Ratio of
Outstanding accumulated accumulated accumulated Provision of Provision of
Maximum outstanding Outstanding Outstanding Amount of endorsement/ Provision of Provision of ProvisionProvision
of Provision
of Provision
of of Provision of
Maximum outstanding
Maximum
Outstanding endorsement/
outstanding
Maximum outstanding endorsement/
Amount of Amount endorsement/ endorsement/
of Ceiling on total amountProvision of Provision endorsements/
of Provision of endorsements/
Limit on endorsements/ endorsement/ endorsement/ Actual Amount
amount ofendorsements/
endorsement/ guarantee
Ceiling on total Ceiling
amounton total endorsements/
Ceiling
amounton total amountendorsements/ endorsements/
endorsements/
endorsements/
endorsements/endorsements/
Number Limit on endorsements/ endorsement/
on endorsements/
Limit endorsement/
endorsements/
endorsement/guarantee
endorsement/ amount endorsements/
Actual amountActual guarantee
endorsements/
amount guarantee
endorsements/ of endorsements/
guarantee endorsements/ endorsements/ guarantees by
endorsements/ guarantees to the
r Number Number Endorser/Guarantor Limitguarntees provided
on for a guarantee amount as of
guarantee amount
Actual amountdrawn
guarantee amount down
guarantee amount guarantees amount to net
of endorsements/ endorsements/guarantees by parent
of endorsements/ guarantees guarantees
guarantees to the Footnote
guarantees
by to theguarantees to the
(Note 1) Relationship with at December guarantees
of provided subsidiary by partyby
inguarantees
Mainland Footnote Footnote Footnote
Endorser/Guarantor
Endorser/Guarantor
Endorser/Guarantor guarntees provided
guarntees guarantee
a provided
forsingle guarntees
party (Note a3) guarantee
foramount
provided of
for amount
asDecember as of amount
a guarantee
31, 2018 as of 31,
drawn down drawn guarantees
(Note down drawn
6) guarantees
securedamount
down net
with to asset amount
guarantees company
value of to netamount to net guarantees by parent
guarantees
to parent to parent
subsidiary by guarantees by parent
) (Note 1) (Note 1) Relationship
Company Relationship
name with with
Relationship with
the endorser/ at December 31, at December
2018 31, at December 31, guarantees provided
guarantees
(Note 3) provided
guarantees provided to parent
subsidiarycompanysubsidiary
party
to in
parent
subsidiary
Mainland
China party
to parent
in Mainland
party in Mainland
single party (Note
single
3) partyDecember
(Note
single3)party 2018
December
31, (Note 31,4)
3)(Note December
2018 31, 2018(Note 6) secured
(Note collateral
asset
secured
6) with (Note valuethe
6) with of endorser/
secured
assetwith (Note
value of asset value ofcompany to subsidiary 7)
Company nameCompany namethe endorser/
Company guarantor (Note
namethe endorser/ 2)
the endorser/ 2018 (Note
20185) 2018 (Note 3) (Note 3) (Note 3) company
(Note 7) companyChina 7)
(Notecompany China China
(Note 4) (Note 4) (Note 4) collateral collateral guarantor
the endorser/ the endorser/
the endorser/collateral (Note 7) (Note 7) (Note 7)
guarantor (Noteguarantor
2) (Note
guarantor
2) (Note 2) (Note 5) (Note 5) (Note 5) (Note 7) (Note 7)(Note 7)(Note 7)(Note 7) (Note 7)
guarantor company guarantor guarantor
Evergreen Marine (Hong Ever Shine (Shanghai) Enterprise company company company
2 2 $ 9,295,583 $ 134,910 $ 71,662 $ 35,633 $ - 1.54% $ 11,619,479 Y N Y

Kong) Ltd. Management Consulting Co., Ltd.
Evergreen Marine
Evergreen
(Hong Marine
Evergreen
Ever
(Hong
Shine
Marine
(Shanghai)
Ever
(Hong
Shine
Enterprise
(Shanghai)
Ever Shine
Enterprise
(Shanghai) Enterprise
2 2 2 $ 2 9,295,583
$2 $ $9,295,583 134,910
$9,295,583$ $134,910
71,662 $
$ 134,910 $35,633$
71,662 35,633
$71,662 $ -$ 35,633 -1.54%
$ $ - 1.54%
11,619,479
$ 1.54%11,619,479
$ Y 11,619,479Y N Y N Y N Y Y
Kong) Ltd. Kong)
Management
Ltd.
Kong) Ltd. Evergreen Management
MarineConsulting
(Hong Co.,Consulting
Management
Ltd. Co.,
Consulting
Ltd. Co., Ltd.
2 Colon Container Terminal S.A. 6 2,323,896 507,141 503,742 503,742 - 10.84% 11,619,479 N N N
Kong) Ltd.
Evergreen Marine
Evergreen
(Hong Marine
Evergreen
(HongMarine (Hong
2 2 Colon ContainerColon
Terminal
Container
S.A.
Colon
Terminal
Container
S.A.
6Terminal S.A.6
2,323,896
6 2,323,896 507,141
2,323,896 507,141
503,742 507,141
503,742
503,742 503,742
503,742 - -
503,742 10.84% 10.84%
- 11,619,479
10.84%11,619,479
N 11,619,479N N N N N N N N
Kong) Ltd. Kong)International
Kong) 3Ltd. Master Ltd. 1 81,691 76,987 76,987 76,987 - 94.24% 204,228 N N Y
Shipping Agency Co., Ltd. Management Consulting Co., Ltd.
Master
Ever Shine
International
(Shenzhen)
Ever ShineEnterprise
(Shenzhen)
(Shenzhen) Enterprise
3 3 1 1 181,691 81,691 76,987
81,691 76,987
76,987 76,98776,987
76,987 76,987
76,987 - 76,987 94.24%
- 94.24%
- 204,228
94.24% 204,228
N 204,228N N N N Y N Y Y
Shipping AgencyShipping
Note Agency
Co.,1:Ltd.
The Shipping
Management
numbers Ltd.
Agency
Co.,filled Management
Co., Ltd. Co.,Consulting
in Consulting
for Management
Ltd. Co.,
Consulting
the endorsements/guarantees provided
Ltd. byCo., Ltd.
the Company or subsidiaries are as follows:
he numbers
Note 1:filled
The numbers
inNote
for the filled
The
1:(2)The numbers
in for thefilled
subsidiaries endorsements/guarantees
are in for the
numberedprovided
theprovided
Company
in orderbystarting byorthe
from ‘1’. provided
subsidiaries
Companyby the
or
aresubsidiaries
Company
as follows:orare
subsidiaries
as follows:are as follows:
)The Company
(1)The
is ‘0’.CompanyRelationship
Note 2:(1)The
is ‘0’. between
Company the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:
is ‘0’.
)The subsidiaries
(2)The (1) Having
aresubsidiaries
numbered
(2)Thein
are business
order
numbered relationship.
subsidiaries
starting
are
infrom
order
numbered
‘1’.
starting
in order
from ‘1’.
starting from ‘1’.
elationship
Note 2:between
Relationship
Note (2) The endorser/guarantor
2: between
Relationship parent
between
and the
the
party company directly
endorser/guarantor
being
and the
endorsed/guaranteed
party being
and indirectly
the more
endorsed/guaranteed
partyisowns
being
classifiedthan
into
is50%
the voting shares
endorsed/guaranteed
classified
following
into
is six the endorsed/guaranteed
classified
the
ofcategories;
following
into the
fill
six in company.
categories;
following
the number
six
fillcategories;
of
in category
the number
fill
eachin
ofthe
case
category
number
belongs
each
ofto:
category
case belongs
eachto:
case belongs to:
Having business
(1) Having (3)
relationship.
business
(1) The endorsed/guaranteed
Having
relationship. parent company directly and indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
business relationship.
(4) The parent company directly or indirectly owns more than 90% voting shares of the companies that make endorsements/guarantees for each other.
The endorser/guarantor
(2) The endorser/guarantor
parent
(2) The
company
endorser/guarantor
parent
directly
company
and parent
indirectly
directly
company
owns
and indirectly
more
directly
than
and
owns
50%
indirectly
more
voting
than
shares
owns
50% more
ofvoting
thethan
endorsed/guaranteed
shares
50% ofvoting
the endorsed/guaranteed
sharescompany.
of the endorsed/guaranteed
company. company.
(5) The parent company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
The endorsed/guaranteed
(3) The endorsed/guaranteed
(3)
parent
Thecompany
endorsed/guaranteed
parent
directly
company
and parent
indirectly
directly
company
owns
and indirectly
more
directly
than
and
owns
50%
indirectly
more
voting
than
shares
owns
50% more
ofvoting
thethan
endorser/guarantor
shares
50% ofvoting
shares
subsidiary.
of the endorser/guarantor
subsidiary. subsidiary.
(6) Due to joint venture, all capital contributing shareholders make endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
The parent company
(4) The parent
directly
(4)
company
The
or indirectly
parent
directly
company
owns
or indirectly
more
directly
thanowns
or
90%indirectly
more
voting
than
shares
owns
90% more
ofvoting
thethan
companies
shares
90% ofvoting
the
thatcompanies
shares
make endorsements/guarantees
of the
thatcompanies
make endorsements/guarantees
that make
for endorsements/guarantees
each other. for each other.for each other.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
The parent company
(5) The parent
fulfills
Note company
3:(5) its
The
Fill parent
fulfills
incontractual
limit obligations
its contractual
oncompany fulfills
byits
providing
obligations
contractual
endorsements/guarantees mutual
byobligations
provided providing by providing
for endorsements/guarantees
a singlemutual
party and mutual
ceiling onfor endorsements/guarantees
another
total amountcompany
of for another
in thecompany
same
for another
industry
endorsements/guarantees the
company
or
same
in provided industry
in the
forasjoint builders
same
or for
prescribed for
joint
purposes
builders
in industry
the or forofjoint
for
undertaking
purposes
endorser/guarantor buildersof
afor
company’sconstruction
undertaking
purposes ofproject.
“Procedures undertaking
construction
afor Provision ofaproject.
Endorsements project.
construction and
Due to joint(6)
venture,
Due toall
joint
capital
(6)
venture,
Duecontributing
to joint
Guarantees”, capital
allandventure,
shareholders
state contributing
each capital
make
shareholders
allindividualcontributing
party make
shareholders
to which endorsements/guarantees
make
to the
endorsed/guaranteed
the endorsements/guarantees have the endorsed/guaranteed
to been company
provided
to and endorsed/guaranteed
the the proportion
company
incalculation inits
forto proportion
company
ownership.
ceiling to
on total in proportion
its ownership.
amount of endorsements/guarantees
to its ownership. provided in the footnote.
Companies (7)
in the
Companies
same industry
(7)
inCompanies
Thethe provide
same industry
calculation in
among
is as same
provide
themselves
thefollows:industry
among
joint
provide
themselves
and several
amongjoint
security
themselves
and several
for joint
a performance
security
and several
for guarantee
a performance
security of
foraasales
guarantee
performance
contract
of afor
guarantee
sales
pre-construction
contract
of a sales
for pre-construction
contract
homes pursuant
for pre-construction
homes
to thepursuant
Consumer
homes
to Protection
thepursuant
Consumer
Act
to the
Protection
forConsumer
each other.
ActProtection
for each other.
Act for each other.
ill in limit
Note on
3: Fill inNote The
limit3:onFillCompany:
endorsements/guarantees 66,844,230*250%
in limit on
provided = 167,110,575
for a single
provided
party
forand
aprovided
single
ceiling
party
for
on total
aand
single
ceiling
amount
party
onof
and
total
ceiling
amount
onof
total
amount provided
of endorsements/guarantees
as prescribed
providedinasthe
prescribed
provided
endorser/guarantor
in
as the
prescribed
endorser/guarantor
company’s
in the endorser/guarantor
“Procedures
company’sfor“Procedures
Provision
company’soffor
“Procedures
Endorsements
Provision of
forand
Endorsements
Provision of Endorsements
and and
uarantees”, and
Guarantees”, Limit on endorsement
state each individual
and
Guarantees”,
state each
party
and
individual
tostate
whichguarantees
or each
the
party
individual Company
to provided
whichparty for
have a single
thebyendorsements/guarantees
to
thewhich the entity $33,422,115
been provided
haveisand
beenthe
provided
calculation
have(Amounting
been
and the to 50%
provided
for calculation
ceiling
and its
onofthe
totalnet worth).
forcalculation
ceiling
amount onoffor
total
ceiling
amountonof
total
amount provided
in theprovided
footnote.in the
provided
footnote.
in the footnote.
he calculationThe ǳǳWhen
is ascalculation
follows: The Company
is calculation
asthe
follows: owns
is as more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to $133,688,460.
follows:
he Company:The According
66,844,230*250%
Company:
ˢˢ The 66,844,230*250%
Company:
= 167,110,575
to the66,844,230*250%
credit= policy of Evergreen
167,110,575 Marine (Hong Kong) Ltd., the calculation for total amount of endorsements/guarantees is as follows:
= 167,110,575
ǳǳ Ceiling on total amount of endorsements/guarantees: USD 151,130*30.7535*250% = 11,619,479
imit on endorsement
Limit onorendorsement
guarantees
Limit onprovided
or
endorsement
guarantees
by theor
provided
Company
guarantees
byfor
the
provided
a Company
single entity
by the
for is
aCompany
single
$33,422,115
entity
for ais(Amounting
single
$33,422,115
entityto
is(Amounting
50%
$33,422,115
of its net
to(Amounting
worth).
50% of its net
to 50%
worth).
of its net worth).
ǳǳ Limit on endorsements or guarantees provided for a single entityǺUSD 151,130*30.7535*50% = 2,323,896
hen the ǳǳWhen
Company owns
theǳǳWhen
Company
more thanthe
owns
50%
Company
more
voting
than
shares
owns
50%more
ofvoting
thethan
endorsed/guaranteed
shares
50% of
voting
sharescompany,
the limit
company,
on endorsement
the company,
limit onorendorsement
guarantee
the limit on
provided
or
endorsement
guarantee
by theprovided
or
Company
guarantee
byshould
the
provided
Company
not exceed
by the
should
Company
200%
notofexceed
its
should
net200%
worth,
not exceed
ofwhich
its net
200%
equals
worth,
oftowhich
its$133,688,460.
net equals
worth, to
which
$133,688,460.
equals to $133,688,460.
ǳǳWhen the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to $9,295,583.
ccording
ˢˢto the ˢˢ
According
credit policy
to the
According
ofcredit
Evergreen
policy
to the
Marine
of
credit
Evergreen
(Hong
policyKong)
Marine
of Evergreen
Ltd.,
(Hongthe
Marine
Kong)
calculation
(Hong
Ltd., the
for
Kong)
calculation
total Ltd.,
amountthe
forof
calculation
total
amount
forof
total
amount is
ofas
follows: is as follows: is as follows:
ǳǳ Ceiling on total amount of endorsements/guarantees of Master International Shipping Agency Co. : CNY 18,239*4.4789*250% = 204,228
ǳǳ
eiling on totalCeiling
amount
ǳǳǳǳ
on
oftotal
endorsements/guarantees:
Ceiling
amount
Limit on onof
total
endorsements/guarantees:
amount
endorsements of
USDendorsements/guarantees:
151,130*30.7535*250%
or guarantees USD
provided USD
= 11,619,479
151,130*30.7535*250%
for151,130*30.7535*250%
a single entity = 11,619,479
of Master International = 11,619,479
Shipping Agency Co.ǺCNY 18,239*4.4789*100%=81,691 (100% of its net worth)
ǳǳ
imit on endorsements
Limit ǳǳ
onor
endorsements
Note guarantees
4: Limit
Fill on provided
in the endorsements
or guarantees
year-to-date a single
or
provided
guarantees
formaximum entityǺUSD
for aprovided
single
outstanding 151,130*30.7535*50%
entityǺUSD
balance single entityǺUSD
151,130*30.7535*50%
= 2,323,896
151,130*30.7535*50%
forofaendorsements/guarantees provided =as2,323,896 = 2,323,896
of the reporting period.
hen the ǳǳWhen
Company owns
theǳǳWhen
Note Company
more
5: than
Fill in the
owns
the50%
Company
more
voting
amount than
shares
owns
50%
approved more
by voting
the
ofthe than
endorsed/guaranteed
shares
Board 50% of
voting
of Directors shares
or company,
the chariman ifthe company,
the limit on endorsement
chairman hasthe company,
limit
been onorendorsement
guarantee
authorised
thebylimit on
provided
or
endorsement
the Board guarantee
by theprovided
or
of Directors.Company
guarantee
byshould
the
provided
Company
not exceed
by the
should
Company
200%
notofexceed
its
should
net200%
worth,
not exceed
ofwhich
its net
200%
equals
worth,
oftowhich
its$9,295,583.
net equals
worth, to
which
$9,295,583.
equals to $9,295,583.
ǳǳ
eiling on totalCeiling
amount ǳǳ
Note
on
of6: Fill
total actual amount
Ceiling
amount
in theonof
total amount endorsements/guarantees
ofof
of Master used
International
of MasterShipping the endorsed/guaranteed
International
of
by Master
Agency
Shipping
International
Co. : CNY
Agency company.
Shipping
18,239*4.4789*250%
Co. : CNY
Agency
18,239*4.4789*250%
Co. : =CNY
204,228
18,239*4.4789*250%
= 204,228 = 204,228
ǳǳ
imit on Note
endorsements
Limit ǳǳ
onor 7: Fill in ‘Y’
endorsements
guarantees
Limit for
on provided cases
endorsements
or those
guarantees
for a of provision
single
or
provided
guarantees
entity
for
ofof
aendorsements/guarantees
provided
single
Masterentity
International
for aofsingle
Masterby listed
entity
Shipping parent
International
of Master
Agencycompany
Shipping subsidiary,
International
Co.ǺCNY
toAgency
Shipping provision by subsidiary to
18,239*4.4789*100%=81,691
Co.ǺCNY listed
Agency18,239*4.4789*100%=81,691
Co.ǺCNY parent
18,239*4.4789*100%=81,691
(100% of itscompany,
net(100% and
worth) provision
of its net
(100%
worth)
to of party
theits net in Mainland China.
worth)
ill in the
Noteyear-to-date
4: Fill inNote
the
maximum
year-to-date
4: Fill in
outstanding
themaximum
year-to-date
balance
outstanding
maximum
balance
outstanding
balance provided
as of the
provided
reporting
as ofperiod.
provided
the reporting
as of period.
the reporting period.
ill in the
Noteamount
5: Fillapproved
inNote
the amount
5: by
Fillthe
in
approved
Board
the amount
ofby
Directors
the
approved
Board
or of
the
byDirectors
the
chariman
Boardorof
ifthe
the
Directors
chariman
chairman
or if
the
has
thechariman
been
chairman
authorised
if has
the been
chairman
by the
authorised
Board
has been
ofby
Directors.
authorised
the Board of
byDirectors.
the Board of Directors.
ill in the
Noteactual
6: Fill
amount
inNote
the of
actual
6:endorsements/guarantees
Fillamount
in the actual
amount used
by the endorsed/guaranteed
used by the endorsed/guaranteed
usedcompany.
by the endorsed/guaranteed
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ill in ‘Y’
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of
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casesofofendorsements/guarantees
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party in and
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China.
into
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the partyChina.
in Mainland China.
Evergreen Marine
Evergreen
Corporation
Evergreen Marine
Evergreen
(Taiwan)
Marine Corporation
Marine
Corporation
Ltd.(Taiwan) Ltd.(Taiwan) Ltd.
Ltd.
Holding of marketable
Holding securities
of marketable
Holding at the
ofHolding of
securities
marketableend
marketable
of the
securities the
securities
atatperiod
theend(not
end of at
including
of the
the the
period
period subsidiaries,
(not
of the
end(not including
periodassociates
including (not
subsidiaries,
including
and
subsidiaries, associates
joint
subsidiaries,
ventures)
associates andassociates
and joint joint ventures)
ventures) and joint ventures)
For the year endedFor
Forthe year ended
December
the year ended
For December
31,the
2018
December 31,
year ended 31,2018
December
2018 31, 2018
Table 3 Table
Table 33 Expressed
in thousands
Expressed of shares/thousands
ofinshares/thousands
thousands
Expressed of of NTD/thousands
in shares/thousands
thousands
of NTD/thousands
of shares/thousands
of NTD/thousands
ofofforeign currency
foreignofcurrency
NTD/thousands
of foreign currency
of foreign currency
(Except otherwise
(Exceptasasotherwise indicated)
(Exceptindicated)
as otherwise
(Except indicated)
as otherwise indicated)
Relationship with the As of December 31, 2018
Securities held by Marketable securities (Note 1) Relationship withRelationship
the with
Relationship
the the
with Genearl ledger account As of December As31,
of 2018
DecemberAs 31,
of December
2018 31, 2018 Footnote (Note 4)
Securities held Securities
by heldSecurities
by held by Marketable securities
Marketable
(Notesecurities
1)
Marketable
(Note
securities
1) (Note 1) Genearl
securities issuer (Note account ledgerGenearl
2) ledger Genearl accountledger account
Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (NoteFootnote
4) (Note
Footnote
4) (Note 4)
securities issuersecurities
(Note 2)issuer securities
(Note 2)issuer (Note 2) Number of shares
Number of Book
shares
Number
valueof(Note
shares
Book3) value (Note
Book
Ownership
3)value (Note
(%)Ownership
3) (%)
Ownership
Fair value(%) Fair value Fair value
Evergreen Marine Corporation Stock:
n Marine
Evergreen
Corporation
Marine
Evergreen
Corporation
MarineStock:
Corporation Stock: Stock:
Power World Fund Inc. Financial asset Financial
measured
value throughassetfair
Financial
atothermeasuredasset
at fair
measured at fair
comprehensive 677 $ 6,772 5.68% $ 6,772
Power World Fund
Power
Inc.
World Power
Fund Inc.
World Fund Inc. value through other non-current
value comprehensive
through
income value
-other through
comprehensive 677 $
other comprehensive 677 $ 6,772
677 $ 6,772 5.68%
6,772 $ 5.68% $ 6,772
5.68% $ 6,772 6,772
Linden Technologies, Inc. Ƀ 50 40,423 1.44% 40,423
Linden Technologies,
Linden Inc.
Technologies,
Linden Technologies,
Inc. Inc. Ƀ Ƀ Ƀ 50 50 40,423
50 40,423 40,423
1.44% 1.44% 40,423
1.44% 40,423 40,423
TopLogis, Inc. Ƀ 2,464 18,906 17.48% 18,906
TopLogis, Inc.TopLogis, Inc.TopLogis, Inc. Ƀ Ƀ Ƀ 2,464 2,464 18,906
2,464 18,906 17.48%
18,906 17.48% 18,906
17.48% 18,906 18,906
Ever Accord Construction Corp. Other related party Ƀ 9,317 105,258 17.50% 105,258
Ever Accord Construction

Ever AccordCorp.
Construction
Ever Accord Construction
Corp. Corp. Other related party
Other related Other
party relatedɃ
party Ƀ Ƀ 9,317 9,317 105,258
9,317 105,258 105,258
17.50% 17.50% 105,258
17.50% 105,258 105,258
Central Reinsurance
Central
Corp.
Reinsurance
Central
Financial Reinsurance Corp.
bonds: Corp. Ƀ Ƀ Ƀ 49,866 49,866 850,223
49,866 850,223 850,223
8.45% 8.45% 850,223
8.45% 850,223 850,223
Financial asset measured at

Financial bonds:
Financial bonds:
Financial
Sunny Bankbonds:
2nd Subordinate Financial Debentures-B Issue in 2015 - 50,000 - 50,000
atmortised cost - non-current
Financial asset Financial
measuredasset
at Financial
measuredasset
at measured at
Sunny Bank 2nd
Sunny Sunny
Subordinate
Bank 2nd Bank
Sunny
Financial Subordinate
Subordinate
Bank
3rd Debentures-BFinancial
2ndFinancial
Subordinate
Issue Debentures-B
Debentures-B
Financial
in 2015 Debentures-B
IssueIssue in 2017
in 2015 Issue in 2015 Ƀ - - - 50,000-50,000 50,000 50,000
- - - 50,000
50,000- 50,000 50,000
atmortised costatmortised
- non-current
cost
atmortised
- non-current
cost - non-current
Sunny Bank 3rd
Sunny
Subordinate
Bank 3rd
Sunny
Financial
Subordinate
Bank Debentures-B
3rdFinancial
Subordinate
Issue
Debentures-B
Financial
in 2017 Debentures-B
Issue in 2017 Issue in 2017 Ƀ Ƀ Ƀ - - 50,000- 50,000 50,000
- - 50,000- 50,000 50,000
Hutchison Inland Container Depots Ltd. value through other comprehensive 0.75 USD 209 7.50 USD 209
vestment
Peony
S.A.Investment
PeonyS.A.
Investment S.A. income - non-current
Financial asset Financial
measuredasset
at fair
Financial
measuredasset
at fair
measured at fair
Hutchison Inland
Hutchison
Container
Inland
Depots
Hutchison
South Container
Asia Ltd.Inland
Gateway Depots
Container
Ltd.
Terminals Depots
(Private) Ltd.
Ltd. value through other
value comprehensive
throughvalue
other comprehensive
Ƀ through other comprehensive
0.75 18,942 0.75 0.75USD
USD USD209 20,226 209USD 7.50
2095.00 7.50
USD
USD 209
7.50USD
20,226 209USD 209
Evergreen Shipping Agency (Europe)
Zoll Pool Hafen Hamburg AG Ƀ 10 EUR 10 2.86 EUR 10
GmbH
South Asia Gateway
South Terminals
Asia Gateway
South
(Private)
Asia
Terminals
Gateway
Ltd. (Private)
Terminals
Ltd.(Private) Ltd. Ƀ Ƀ Ƀ 18,942 18,942
USD 20,226
18,942
USD 20,226
USD 20,226
5.00 5.00
USD 20,226
5.00
USD 20,226
USD 20,226
Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS9, 'Financial instruments: recognition and measurement'.
n Shipping
Evergreen
Agency
Shipping
Evergreen
(Europe)
Agency
Shipping
(Europe)
Agency (Europe)
Note 2: Leave the Zoll Pool
column Hafen
blank Zoll
Hamburg
if the issuer AGZollHamburg
PoolofHafen
marketable Hafen
AGHamburg
Poolsecurities is non-related
AG party. Ƀ Ƀ Ƀ 10 10EUR 10
10EUR 10EUR 2.86
10 2.86EUR 2.86
10 EUR 10EUR 10
GmbH GmbH
Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the
Marketable
Note securities
1: Marketable
Note
in the marketable
1:securities
table
Marketable
refer securities
in to
the
securities
stocks,
table not
refer
bonds,
inmeasured
the
to stocks, fair
beneficiary
tableatrefer value.
bonds,
to
certificates
stocks,
beneficiary
bonds,
andcertificates
other
beneficiary
related
andcertificates
derivative
other related
securities
and derivative
otherwithin
related
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the
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scopewithin
ofsecurities
IFRS9,
the scope
'Financial
within
of IFRS9,
theinstruments:
scope
'Financial
of IFRS9,
recognition
instruments:
'Financial
andrecognition
instruments:
measurement'.
and
recognition
measurement'.
and measurement'.
Leave Note
the column
2: Leave Note
blank
Note 4: The
theifcolumn
2:
the number
Leave
issuer
blank
the shares
of column
marketable
ifofthe issuer
blanksecurities
of securities and
ofifmarketable
the issuer their amounts
is non-related
of
securities
marketable
party.
ispledged as security
non-related
securities isparty.
non-related for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.
or pledgedparty.
Fill in the
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3: Fillafter
inNote
theadjusted
amount
3: Fill in
atafter
the
fair adjusted
amount
value and
after
atdeducted
fairadjusted
valueby
and
ataccumulated
fair
deducted
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byimpairment
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by impairment
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the
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for
measured
the
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at fairmeasured
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fillatinfair
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fill
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in the
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value;
acquisition
or amortised
fill in the
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acquisition
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or amortised
deducted
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cost
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amortised
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byimpairment
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atnot
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The number
Note 4:
ofThe
shares
number
Note
of securities
4:ofThe
shares
number
and
oftheir
securities
of shares
amounts
and
of securities
pledged
their amounts
asand
security
their
pledged
amounts
or pledged
as security
pledged
for loans
or as
pledged
security
and their
fororloans
restrictions
pledged
and for
their
onloans
restrictions
use under
and their
some
onrestrictions
use
agreements
under some
on should
useagreements
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someshould
agreements
in thebe
footnote
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should
in
if the
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securities
stated inifthe
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thefootnote
securities
herein
if the
presented
have
securities
suchherein
conditions.
presented
have such
herein
conditions.
have such conditions.
2018 Annual Report
415
416
Evergreen Evergreen
Marine Corporation
EvergreenMarine
Evergreen(Taiwan)
Marine Corporation
MarineCorporation
Corporation Ltd.
(Taiwan) Ltd.
(Taiwan) Ltd.
(Taiwan)Ltd.
AcquisitionAcquisition
or sale or sale
of Acquisition
the
Acquisitionsame the
ofsecurity
or sale or
of same
the with
ofsecurity
salesame the
the
samewith
accumulated
security security
with with
thetheaccumulated
accumulated cost
cost exceeding
the accumulated
$300
cost exceeding
exceeding $300
million
cost$300 million
exceeding
20%
ormillionof
$300
the
oror 20%
20%million
Company's
of of or
thethe Company's
20%
paid-in
of the
Company's paid-in
capital
Company's
paid-in capital
capital paid-in capital
For
For the year For
the year
theyear
ended ended
ended
December
For December
December
the year
31, 2018 31,
ended31, 2018
December
2018 31, 2018
e4 Table 4 Table 4
Table Expressed
Expressed
in thousands in
Expressedshares/thousands
thousands
ofofshares/thousands
in of
thousands
shares/thousands
ofofNTD
NTD
shares/thousands
of NTD of NTD
(Except
(Exceptasas otherwise
(Except
otherwiseas indicated)
(Except
otherwise
indicated)asindicated)
Balance as at December 31,

Balance as at January 1, 2018 Addition (Note 3) Disposal (Note 3) Balance asBalance
at December
as Balance
at December
31, as at 31,
December 31,
Marketable securities Counterparty Relationship Balance at January
with theasBalance as Balance
at
1, January
2018 as 1,
at 2018
January
Addition
1, 2018
(Note
Addition
3) (Note
Addition
3) (Note 3) Disposal (Note
Disposal
3) (Note
Disposal
3) (Note 3) 2018
Marketable
InvestorMarketable
securities Marketable
securities securities General ledger
Counterparty
account Counterparty
Relationship
Counterparty
Relationship
with the Relationship
with the with the 2018 2018 2018
Investor Investor Investor 1ȑ
ȐNoteGeneral ledger
General
account
ledger
General
account
ledger account (Note 2) investor (Note 2)
ȐNote 1ȑ ȐNote 1ȑȐNote 1ȑ (Note 2) (Noteinvestor
2) (Note
(Note
investor
2)2) (Noteinvestor
2) (NoteNumber2) of Number of Number of Gain (loss) on Number of
Number ofNumber of NumberAmount
of Number ofNumber Amount
of Number of
Number of Selling price
Number of Number of Book value Gain (loss)Gain
on (loss)
Number
Gain
on of(loss)
NumberAmount
on of Number of
shares
Amount Amount Amount sharesAmount shares
Amount Amount Selling price
Selling price
BookSelling
valueBook
price valuedisposal
Book value shares Amount Amount Amount
shares shares shares shares shares shares shares shares shares disposal disposalsharesdisposal
shares shares
Evergreen
Stock:
green Evergreen Evergreen

Stock:
MarineStock: Stock:
ine Marine Marine
Corporation Financial asset measured at fair
oration
CorporationCorporation Financial asset
Financial
measuredvalue
asset
Financial
at through
measured
fair assetatother
measured
fair at fair
Taiwan HSR Consortium 13,356 $ 329,329 - $ - 13,356 $ 342,661 $ 329,329 $ 13,332 - $ -
value through comprehensive
value
other
throughvalue income
other non-
throughother
Taiwan HSR
Taiwan
Consortium
HSRTaiwan
Consortium
HSR Consortium 13,356 $13,356329,329 329,329
$ 13,356 $ 329,329
- $ - $- - -
$13,356 -
$13,356342,661 $ $ 329,329
$13,356342,661 $342,661
329,329
$ $ 13,332
$329,329
13,332
$ $
- 13,332 - $- - $- -
comprehensive
comprehensive
incomecomprehensive
- non-
income
current- non-
income - non-
current current current
Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
1: Marketable Note 2:
Note 1: Marketable
securities
Note 1: Fill in the
Marketable
in
securities
the columns
table the
insecurities
refer
the tablecounterparty
to stocks,
in
refer and
the bonds,
to
table relationship
stocks,
refer
beneficiary
bonds,
to stocks, securities
beneficiary
certificates
ifbonds, accounted
beneficiary
certificates
and
are other related under
certificates
and for
other
derivative
related
and equity
theother method;
securities.
derivative
related securities.
derivative leave the columns blank.
otherwisesecurities.
2: FillNote
in the Note
2: columns
FillNote
in the3:
2:
theAggregate
columns
Fill
counterparty
in the
thepurchases
columns
counterparty sales
and relationship
the
andcounterparty
andamounts should
relationship
if securities
and be calculated
relationship
if are
securities
accounted
ifareseparately
securities
accounted
for under
are their
atthe
for market
accounted
equity
under values
method;
the
for to
equity
under verify
otherwise
method;whether
the equity
leave they
otherwise
method; individually
the columns
leave
otherwise reach NT$300
theblank.
columns
leave the
blank. million
columns or 20% of paid-in capital or more.
blank.
3: Aggregate Note 4:
Note 3: Aggregate
purchases
Note 3: Paid-in
and capital
purchases
Aggregate
sales and referred
amounts
purchases to
salesshould
amounts
andherein
sales the paid-in
be calculated
should
isamounts capital
be calculated
separately
should parent company.
beofseparately
at
calculated
their market
at
separately
their
values
market
at
totheir
verify
values
market
whether
to verify
values
they
whether
toindividually
verify
they
whether
individually
reachthey
NT$300
individually
reachmillion
NT$300reach
or 20%
million
NT$300
of or
paid-in
20%
million
capital
of paid-in
or 20%
or more.
capital
of paid-in
or more.
capital or more.
4: Paid-in
Note capital
4: Paid-in
Note
referred
capital
4: Paid-in
toreferred
herein
capital
istothe
referred
herein
paid-in
isto
the
capital
herein
paid-in
of
is parent
the
capital
paid-in
company.
of parent
capitalcompany.
of parent company.
EvergreenEvergreen
Marine Corporation
Marine
Evergreen
Evergreen (Taiwan)
Marine Corporation
MarineCorporation
Corporation Ltd.
(Taiwan) Ltd.
(Taiwan) Ltd.
(Taiwan)Ltd.
or sales
PurchasesPurchases Purchases
goods
ofor
Purchases sales from
or sales or sales
of goods
ofor
goodsrelated
tofrom goods
offrom parties
to
or or from
to reaching
related
related to related
orparties
partiesNT$100
parties
reaching
reachingmillion
reaching
NT$100
NT$100 20%
NT$100
million
ormillion of paid-in
oror million
20%
20% capital
of of or 20%
paid-in
paid-in more
of paid-in
or capital
capital or morecapital or more
or more
For the year

Forended
the
For December
For
theyear
year the year
ended
ended 31,ended
December
December December
2018 31, 2018 31, 2018
31,2018
le 5 Table 5 Table 5
Table Expressed in thousands
ExpressedExpressed
in thousandsin
Expressed
thousands
in thousands
(Except
(Exceptasas otherwise
(Except
as (Except
otherwise
indicated)asindicated)
Differences
Differences
Differencesin transaction
in transaction
Differences
in transactionin transaction
terms
terms comparedcompared
terms compared
to thirdto third
terms to
compared to third
Transaction third Notes/accounts receivable (payable)
Transaction
TransactionTransaction party transactions Notes/accounts
Notes/accounts
receivable
Notes/accounts
receivable
(payable) (payable)
receivable (payable)
Relationship with the party transactions
party transactions
party transactions
Purchaser/Seller Counterparty
Relationship
Relationship
with theRelationship
with the with the (Note 1) Footnote (Note 2)
Purchaser/Seller
Purchaser/Seller
Purchaser/Seller Counterparty
Counterparty
Counterparty counterparty (Note 1) (Note 1) (Note 1) Footnote (Note
Footnote
2) (Note
Footnote
2) (Note 2)
counterparty
counterparty
counterparty Percentage of Percentage of total
Purchases/ Percentage Percentage Percentage
of Percentage Percentage
of total Percentage
of total of total
Purchases/Purchases/ Amount
Purchases/ total
ofpurchases/ Credit
ofterm Unit price Credit term Balance notes/accounts
salesAmount total purchases/
Amount Amount purchases/
total sales total purchases/
Credit term
Credit term
Unit
Credit
priceUnit
term
Credit
priceterm
Unit
Credit
price
term
Balance
Credit term
Balance notes/accounts
Balance notes/accountsnotes/accounts
sales sales sales receivable (payable)
Evergreen Marine Corporation sales sales sales receivablereceivable
(payable) (payable)
receivable (payable)
rgreenEvergreen
Marine Corporation
Marine
Evergreen
Corporation
Marine Corporation Everport Terminal Services Inc. Subsidiary Purchases $ 1,455,870 4% 30~60 days $ - - ($ 68,256) 1%
Everport Terminal
Everport Services
Terminal
EverportInc.
Services
TerminalInc.
Services
Subsidiary
Inc.
Subsidiary Subsidiary PurchasesPurchases
$ Purchases
1,455,870
$ 1,455,870
$ 4%
1,455,870 30~60
4% days
30~60
4% days
$ 30~60$-days -$ - ($ - - ($
68,256)- 68,256)
($ 68,256) 1% 1% 1%
Purchases 1,580,488 5% 30~60 days - - ( 20,659) -
Greencompass Marine S.A. PurchasesPurchases Purchases 5%
1,580,4881,580,488 1,580,488 30~60
5% days
30~60
5% days30~60 -days - - ( - - (20,659)- 20,659)
( 20,659) - - -
Company
Indirect subsidiary
Indirect subsidiary
ofIndirect
the of
subsidiary
the of the
Greencompass
Greencompass
Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. Sales 1,497,882 4% 30~60 days - - 7,782 -
CompanyCompany Company
Sales Sales 1,497,882
Sales 4%
1,497,882 1,497,882 30~60
4% days
30~60
4% days30~60 -days - - - - 7,782 - 7,782 7,782 - - -
Taiwan Terminal Services Co., Ltd. Subsidiary Purchases 893,918 3% 30~60 days - - ( 79,666) 2%
Taiwan Terminal
Taiwan Services
Terminal
TaiwanCo.,
Services
Terminal
Ltd. Co.,
Services
Subsidiary
Ltd. Co.,Subsidiary
Ltd. Subsidiary PurchasesPurchases Purchases
893,918 893,918 3%
893,918 30~60
3% days
30~60
3% days30~60 -days - - ( - - (79,666)- 79,666)
( 79,666) 2% 2% 2%
Purchases 370,150 1% 30~60 days - - - -
Italia Marittima S.p.A. Associates
370,150 370,150 1%
370,150 30~60
1% days
30~60
1% days30~60 -days - - - - -- - - - - -
Sales 408,890 1% 30~60 days - - 8,445 -
Italia Marittima
Italia Marittima
S.p.A.
Italia S.p.A.
Marittima S.p.A.
AssociatesAssociates Associates
Evergreen International Storage and Sales Sales 408,890 408,890 1%
408,890 30~60
1% days
30~60 - - 8,445 - 8,445 8,445 - -
Associates Purchases Sales 410,325 1% 30~60
1%days
days30~60 -days - - -( - 20,660) --
Transport Corp.
EvergreenEvergreen
International
International
Evergreen
Storage
and
Storage
Shipping andStorage and
Agency
AssociatesAssociates
Other Associates
related partiesPurchasesPurchases 410,325 410,325
PurchasesPurchases 363,380 1%
410,325 30~60
1% days
1% 30~60
30~60
1%days
days30~60 -days - - (
- ( - - - (20,660)- -20,660) 20,660) -- - -
TransportTransport Corp.
Transport
Corp. (America) Corp.
Corporation
EvergreenEvergreen
Shipping Agency
Shipping
EvergreenAgency
Shipping Agency
Other related
Other
parties
related
Other
parties
relatedPurchases
parties Purchases
PurchasesPurchases 449,731
363,380 363,380 1%
363,380 1%
30~60 30~60
1% days 1%days
30~60 days30~60 -days - - - - -( - 2,390)
-- - - -- - -
(America)(America)
Corporation
Corporation
(America) Corporation
Evergreen International Corp. Other related parties
PurchasesPurchases
Sales Purchases
449,731 1,739,984
449,731 1%
449,731 5%
30~60 30~60
1% days 1%days
30~60 days30~60 -days - - 33,363
- ( - - - ( 2,390) - (2,390) 2,390) 1%
- - -
EvergreenEvergreen
International
International
Evergreen
Corp. International
Corp. Other
Corp.
related
Other
parties
related
Other
parties
related parties
Purchases 250,536 1% 30~60 days - - ( 110) -
Sales
Indirect subsidiary of the Sales 1,739,984
Sales 5%
1,739,984 1,739,984 30~60
5% days
30~60
5% days30~60 -days - - - - 33,363 - 33,363 33,363 1% 1% 1%
Company
Sales 729,254 2% 30~60 days - - 9,549 -
250,536 250,536 1%
250,536 30~60
1% days
30~60
1% days30~60 -days - - ( - - ( 110)- ( 110) 110) - - -
Indirect subsidiary
Indirect subsidiary
ofIndirect
the of
subsidiary
the of the
EvergreenEvergreen
Marine (UK)
Marine
Evergreen
Limited
(UK)
Marine
Limited
(UK) Limited
CompanyCompany Company Purchases 181,192 1% 30~60 days - - - -
Evergreen Marine (Singapore) Pte. Ltd. Other related parties Sales Sales Sales
729,254 729,254 2%
729,254 30~60
2% days
30~60
2% days30~60 -days - - - - 9,549 - 9,549 9,549 - - -
Sales 1,085,215 3% 30~60 days - - 11,453 -
181,192 181,192 1%
181,192 30~60
1% days
30~60
1% days30~60 -days - - - - -- - - - - -
EvergreenEvergreen
Marine (Singapore)
Marine
Evergreen
(Singapore)
Pte.
Marine
Ltd.(Singapore)
Pte.
OtherLtd.
related
Other
Pte.parties
Ltd.
related
Other
parties
related parties Sales 112,920 - 30~60 days - - 1,751 -
Evergreen Marine (Hong Kong) Ltd. Subsidiary Sales Sales 1,085,215
Sales 3%
1,085,215 1,085,215 30~60
3% days
30~60
3% days30~60 -days - - - - 11,453 - 11,453 11,453 - - -
Purchases 577,182 2% 30~60 days - - - -
Sales Sales Sales

112,920 112,920 112,920
- 30~60
- days
30~60
- days30~60 -days - - - - 1,751 - 1,751 1,751 - - -
EvergreenEvergreen
Marine (Hong
Marine
Evergreen
Kong)
(Hong
Marine
Ltd.
Kong)
(Hong
Subsidiary
Ltd.Kong)
Subsidiary
Ltd. Subsidiary
577,182 577,182 2%
577,182 30~60
2% days
30~60
2% days30~60 -days - - - - -- - - - - -
2018 Annual Report
417
418
party transactions
counterparty
Purchases/
sales
Gaining Enterprise S.A. Other related parties Purchases $ 1,365,732 4% 30~60 days $ - - $ - -
Taipei Port Container Terminal Corp. Associates Purchases 107,467 - 30~60 days - - - -

Co.,Ltd. Evergreen Marine Corp. The parent Sales 893,918 100% 30~60 days - - 79,666 99%
Everport Terminal Services Inc.

Evergreen Marine Corp. The parent Sales USD 48,254 11% 30~60 days - - USD 2,219 6%

Evergreen Marine (Singapore) Pte. Ltd. Sales USD 76,497 17% 30 days - - USD 4,825 13%
Greencompass Marine S.A. Sales USD 43,105 10% 30 days - - USD 2,226 6%
Parent Company
Evergreen Marine (UK) Limited Sales USD 121,382 27% 30 days - - USD 5,916 16%
Parent Company
Investee of Balsam
Italia Marittima S.p.A. Investment (NetherLands) Sales USD 12,707 3% 30 days - - USD 858 2%
N.V.
Evergreen Marine (Hong Kong) Ltd. Sales USD 8,937 2% 30 days - - USD 440 1%
Company
Evergreen Shipping Agency Investee of the Parent
Purchases USD 8,745 2% 30 days - - - -
(America) Corporation Company's major shareholder
Ltd. Sales USD 19,130 5% 30~60 days - - - -
Sales USD 32,710 9% 30~60 days - - - -

Parent Company

Sales USD 7,325 2% 30~60 days - - - -

party transactions
counterparty
Purchases/
sales
Ltd. Sales USD 10,535 3% 30~60 days $ - - USD 903 1%

Parent Company

Everport Terminal Services Inc. Purchases USD 8,937 3% 30 days - - (USD 440) 1%
Company
Master International Shipping Agency Indirect subsidiary of the
Purchases USD 3,538 1% 30~60 days - - (USD 3,538) 5%
Co., Ltd. Parent Company
Sales USD 53,300 2% 30~60 days - - USD 1,183 -
Parent Company


Everport Terminal Services Inc. Purchases USD 43,105 2% 30 days - - (USD 2,226) 1%
Company
Sales USD 85,897 3% 30~60 days - - USD 2,214 1%



Evergreen International Corp. Purchases USD 12,860 - 30~60 days - - (USD 1,055) -
Evergreen Shipping Agency (Japan) Purchases USD 6,581 - 30~60 days - - - -
Evergreen Shipping Agency (Europe) Indirect subsidiary of the
GmbH Parent Company
2018 Annual Report
419
420
party transactions
counterparty
Purchases/
sales
Greencompass Marine S.A. Investee of the Parent
Evergreen Insurance Company Limited Purchases USD 5,094 - 30~60 days $ - - (USD 938) -
Evergreen Marine Co. (Malaysia) Indirect subsidiary of the
Purchases USD 5,446 - 30~60 days - - - -
SDN.BHD. Parent Company
Sales USD 7,686 - 30~60 days - - - -

Company
PT. Evergreen Shipping Agency Investee of Peony Investment

Indonesia S.A.
Parent Company
Purchases USD 53,300 3% 30~60 days - - (USD 1,183) 1%
Sales USD 8,304 - 30~60 days - - USD 4 -

Evergreen Marine Corp. The Parent

Everport Terminal Services Inc. Purchases USD 121,382 7% 30 days - - (USD 5,916) 3%
Company
Investee of Balsam Sales USD 12,041 1% 30~60 days - - USD 367 -

N.V. Purchases USD 17,127 1% 30~60 days - - (USD 364) -



Company

Evergreen International Corp. Purchases USD 8,310 - 30~60 days - - (USD 226) -
Evergreen Insurance Company Limited Purchases USD 4,167 - 30~60 days - - - -
party transactions
counterparty
Purchases/
sales
Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) Indirect subsidiary of the
Purchases USD 6,671 - 30~60 days $ - - $ - -
GmbH Parent Company
Corp.(Malaysia) Berhad Gaining Enterprise S.A. Investee of EITC Sales MYR 64,925 21% 45 days - - - -

Evergreen Marine (Hong Kong) Ltd. Sales MYR 249,169 79% 45 days - - MYR 49,931 100%
Company
Evergreen Shipping Agency Indirect subsidiary of the
(Europe) GmbH Greencompass Marine S.A. Sales EUR 12,354 34% 30~60 days - - - -
Parent Company
Investee of Balsam
Italia Marittima S.p.A. Investment (NetherLands) Sales EUR 4,813 13% 30~60 days - - EUR 434 1%
N.V.
Evergreen Marine (UK) Limited Sales EUR 5,649 15% 30~60 days - - - -
Parent Company
Evergreen Marine (Singapore) Pte. Ltd. Sales EUR 9,921 27% 30~60 days - - EUR 892 2%
Master International Shipping Subsidiary of the Parent
Agency Co. Ltd. Evergreen Marine (Hong Kong) Ltd. Sales CNY 23,434 96% 30~60 days CNY 24,295 100%
Company
Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.
Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party
transactions.
2018 Annual Report
421
422
EvergreenEvergreen
Marine
Evergreen
Marine Marine
(Taiwan)
Marine Corporation
Corporation Corporation
Ltd.
(Taiwan)
(Taiwan)Ltd.Ltd.
(Taiwan) Ltd.
ReceivablesReceivables
from related
Receivables
Receivablesfromparties
fromrelated
from
reaching
relatedparties
related
partiesNT$100
reaching
partiesmillion
reaching NT$100
reaching
NT$100 million
20%
NT$100
ormillion paid-in
oforor million
20% capital
20%ofof or
paid-in
20%
paid-in or of
capital
more
paid-in
capital or more
capital or more
or more
December
DecemberDecember 31,
31, 2018
31, 2018 December
2018 31, 2018
le 6 Table 6 Table 66 Expressed
Expressed
in thousandsExpressed NTD/thousands
in thousands
of of
NTD/thousands
in thousands
of NTD/thousands
of
of
offoreign currency
NTD/thousands
foreignofcurrency
foreign of
currency
foreign currency
(Except otherwise
(Exceptas(Except
asotherwise indicated)
as(Except
otherwise
indicated)
as otherwise
indicated)indicated)
Balance Balance
Balance
at as at
asBalance
at as at OverdueOverdue receivables
receivables
Overdue receivables Amount
Amount
Overdue receivables collected
collected
Amount collected
Relationship Relationship
Relationship
with theRelationship
withwiththe
the with as
the
AmountAllowance
collectedfor
AllowanceAllowance
for Allowance
Creditor Creditor Creditor
Creditor Counterparty Counterparty
Counterparty
Counterparty December
DecemberDecember 2018
31,Turnover
31, 2018 December
31, 2018 31, Turnover
Turnover
rate
2018 rate rate
Turnover rate subsequent
subsequentsubsequent
to the
to thesubsequent
to the the
forFootnotefor
Footnote Footnote Footnote
counterparty counterparty
counterparty counterparty Action taken doubtfultoaccounts
doubtful accounts
doubtful accounts
(Note 1) AmountAmount
Amount Action
Amounttaken
Action taken balance
Action sheet date doubtful accounts
taken
(Note 1) (Note 1) (Note 1) balance sheet
balance
datesheet
balance
datesheet date
Evergreen Marine Corp. Evergreen International Corporation Investee of the $ 212,956 - $ - - $ 211,519 $ -
greenEvergreen
Marine Corp.
Evergreen
Marine Corp.
Marine Corp. EvergreenEvergreen
International
Evergreen
International
Corporation
International
Corporation
Corporation
Investee ofInvestee
the ofInvestee
the $ of the $ 212,956 $ 212,956 212,956 - $ - $ -- $ - -- $ - $ 211,519 - $ 211,519
$ 211,519
$ -$ - -
Company's major
Company'sCompany's
major Company's
shareholder
major major
shareholder
shareholder shareholder
Peony Investment S.A. Clove Holding Ltd. Subsidiary USD 20,194 - - - - -
y Investment
Peony Investment
S.A.
Peony Investment
S.A. S.A.Clove Holding
CloveLtd.
Holding
CloveLtd.
Holding Ltd. SubsidiarySubsidiarySubsidiary
USD USD20,194USD20,194 20,194
- - -- - -- - - - - - - - -
Evergreen Heavy Industrial Corp. Evergreen Marine (Hong Kong) Ltd. Investee of the Parent MYR 49,931 - - - MYR 49,931 -
greenEvergreen (Malaysia)
Heavy Industrial
Evergreen Berhad
Heavy Industrial
Corp.
Heavy Industrial
Corp.Evergreen
Corp.Evergreen
Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.Kong)
(Hong
Ltd.Kong)
Investee Company's
Ltd.ofInvestee
the Parent
ofInvestee
themajor
Parent
MYR
of the Parent
MYR 49,931MYR
49,931 49,931
- - -- - - - MYR - MYR
49,931
- MYR
49,931 49,931 - - -
laysia)(Malaysia)
Berhad (Malaysia)
Berhad Berhad shareholder
Company'sCompany's
major Company's
major major
shareholder
shareholdershareholder
Clove Holding Ltd. Colon Container Terminal, S.A. Investee of Clove USD 9,689 - - - - -
e Holding
CloveLtd.
Holding
CloveLtd.
Holding Ltd. Colon Container
Colon Container
Terminal,
Colon Container
Terminal,
S.A. Terminal,
S.A. S.A.
Investee ofInvestee
Clove ofInvestee
Clove of
USDClove USD9,689 USD9,689 9,689
- - -- - -- - - - - - - - -
for using equity
Holding Ltd.
Holding
accounted
Ltd.
Holding
accounted
Ltd. accounted
method
for using equity
for using equity
for using equity
method method method
Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties, etc.
1: Fill
Note
in separately
1: Fill
Note
in separately
1:
theFill
balances
in separately
the of
balances
accounts
theof
balances
receivable–related
accounts ofreceivable–related
accountsparties,
notes
parties,
notes
parties,
notesparties,
other
parties,
other
parties,
other receivables–related
parties, etc.
parties, etc.
parties, etc.
2: Paid-in
Note 2:capital
Paid-in
Notereferred
2:
capital
Paid-in
toreferred
herein
capitalis
toreferred
the
herein
paid-in
istothe
herein
capital
paid-in
isofthe
capital
parent
paid-in
company.
of parent
capital company.
of parent company.
EvergreenEvergreen
Marine Corporation
Evergreen Evergreen
Marine Marine
(Taiwan)
Marine Corporation
Ltd.
(Taiwan) Ltd.
(Taiwan) Ltd.
(Taiwan)Ltd.
SignificantSignificant
inter-company
Significant
inter-company
Significant transactions
inter-company
inter-company transactions
during the
transactions
transactions during
reporting
during the during
periods
reporting
the
thereporting periods
reporting periods
periods
For the year
Forended
Forthe December
Forended
theyear
year the year
ended December
31,ended
December December
2018 31, 2018 31, 2018
31,2018
able 7 Table 7 Table
Table 7 Expressed thousands
ExpressedExpressed
ininthousands of NTD
Expressed
in thousands
NTDin thousands
of NTD of NTD
(Except otherwise
(Exceptasas(Except
as(Except
otherwise
indicated)
as otherwise
indicated) indicated)
Transaction
Transaction
Transaction
Transaction
Number
Number Number Number Percentage consolidated total
Company Company
name Company
Company
name name
name Counterparty Counterparty
Counterparty
Counterparty Relationship
Relationship
Relationship
(Note 2)Relationship
(Note
(Note 2)
2) (Note 2) Percentage Percentage
ofofconsolidated
Percentage
of consolidated
totalof consolidated
total total
(Note 1)
(Note 1) (Note 1) (Note 1) General ledger account Amount Transaction terms operating revenues or total assets
General ledger
General
account
ledger
General
account
ledger account Amount Amount AmountTransaction
Transaction
terms Transaction
terms terms
operating revenues
operatingorrevenues
operating
total assets
or
revenues
total assets
or total assets
(Note 3)
0 Evergreen Marine Corporation Taiwan Terminal Services Co.,Ltd. 1 Operating cost $ 893,918 Note 4 0.53
0 0
Evergreen 0
Evergreen
Marine Corporation
Evergreen
Marine Corporation
Marine Corporation Taiwan Terminal
Taiwan Services
Terminal
TaiwanCo.,Ltd.
Services
TerminalCo.,Ltd.
Services Co.,Ltd. 1 1 1 Operating Operating
cost Operating
cost $
cost $ $ 893,918 893,918 893,918
Note 4 Note 4 Note 4 0.53 0.53 0.53
0 Evergreen Marine Corporation Greencompass Marine S.A. 1 Shipowner's account - debit 114,568 " 0.05
0 0
Evergreen 0
Evergreen
Marine Corporation
Evergreen
Marine Corporation
Marine Corporation Greencompass
Greencompass
Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. 1 1 1 Shipowner's
Shipowner's
accountShipowner's
- debit
account - debit
account - debit 114,568 114,568 114,568
" " " 0.05 0.05 0.05
0 Evergreen Marine Corporation Greencompass Marine S.A. 1 Operating revenue 1,497,882 " 0.89
0 0
Evergreen 0
Evergreen
Marine Corporation
Evergreen
Marine Corporation
Greencompass
Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. 1 1 1 Operating Operating
revenue Operating
revenue revenue 1,497,882 1,497,882 1,497,882
" " " 0.89 0.89 0.89
0 Evergreen Marine Corporation Greencompass Marine S.A. 1 Operating cost 1,580,488 " 0.93
0 0
Evergreen 0
Evergreen
Marine Corporation
Evergreen
Marine Corporation
Greencompass
Marine
Greencompass
S.A.
Marine S.A.
cost Operating
cost cost 1,580,488 1,580,488 1,580,488
" " " 0.93 0.93 0.93
0 Evergreen Marine Corporation Evergreen Marine (UK) Limited 1 Shipowner's account - debit 675,749 " 0.30
0 0
Evergreen 0
Evergreen
Marine Corporation
Evergreen
Marine Corporation
Marine Corporation EvergreenEvergreen
Marine (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited 1 1 1 Shipowner's
Shipowner's
accountShipowner's
- debit
account - debit
account - debit 675,749 675,749 675,749
" " " 0.30 0.30 0.30
0 Evergreen Marine Corporation Evergreen Marine (UK) Limited 1 Operating revenue 729,254 " 0.43
0 0
EvergreenEvergreen
Marine
00 Corporation
Evergreen
Marine Corporation
Corporation EvergreenEvergreen
Marine (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited 1 1 Operating Operating
revenue revenue revenue 729,254 729,254 729,254
250,536 " " 0.43
0.15 0.43 0.43
Evergreen Marine
MarineCorporation Evergreen Marine (UK) Limited 11 Operating Operating
cost " "
0 0
EvergreenEvergreen
Marine
00 Corporation
Evergreen
Marine Corporation
Marine (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) 1 1 Operating Operating cost 250,536 250,536 250,536
613,053 " " 0.15
0.27 0.15 0.15
Evergreen Marine
MarineCorporation Evergreen Marine (Hong Kong)Limited
Ltd. 11 Shipowner's
costaccountOperating
- credit cost " "
0 0
Evergreen 0
Evergreen
Marine Corporation
Evergreen
Marine Corporation
Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.
Kong)
(Hong
Ltd.Kong) 1 1 Shipowner's
Shipowner's
accountShipowner's
- credit
account account - credit 613,053 613,053 613,053
112,920 " " 0.27
0.07 0.27 0.27
Evergreen Marine
MarineCorporation Evergreen Marine (Hong Kong) Ltd. Ltd. 11 Operating revenue - credit " "
0 0
Evergreen 0
Evergreen
Marine Evergreen
Corporation
Evergreen Marine
Marine Corporation
MarineCorporation
Corporation Evergreen
EvergreenEvergreen
Marine (Hong Marine
Evergreen
Marine
Kong)
(Hong(Hong
Marine
Ltd. Kong)
Kong)
(Hong
Ltd.Kong)
Ltd. Ltd. 1 11 1 Operating Operating
revenue cost
Operating Operating
revenue revenue 577,182
112,920 112,920 112,920
" " " " 0.34
0.07 0.07 0.07
Evergreen Marine Everport Terminal Services Inc. cost 1,455,870

577,182 577,182 577,182 0.86
0.34 0.34 0.34
0 0
Evergreen 0
Evergreen
Marine Corporation
Evergreen
Marine Corporation
MarineCorporation
Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.
Kong)
(Hong
Ltd.Kong) Ltd. 1 11 1 OperatingOperating
Operating
cost Operating
cost cost " " " "
Greencompass Marine S.A. Evergreen Marine (UK) Limited 3 Shipowner's 354,342
1,455,870 "
1,455,870 1,455,870 0.15
0.86 0.86 0.86
0 0
Evergreen 01
Evergreen
Marine Corporation
Evergreen
Marine Corporation
Marine Corporation Everport Terminal
Everport Services
Terminal
EverportInc.
Services
TerminalInc.
Services Inc. 1 1 1 Operating Operating
costaccount
Operating
cost
- debit cost " " "
Greencompass Marine S.A. Evergreen
EvergreenEvergreen
Marine (UK) Marine
Evergreen
Marine
Limited
(UK)(Hong
Marine
Limited
(UK) Ltd.
Kong)Limited 3 33 3 Operating cost 986,885
354,342 354,342 354,342
" " " " 0.58
0.15 0.15 0.15
1 1
Greencompass
Greencompass
11 Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. Shipowner's
Shipowner's
accountShipowner's
- debit
account - debit
account - debit
1 Greencompass Marine S.A. Everport Terminal Services Inc. 3 Operating cost 1,300,513 " 0.77
1 1
Greencompass
Greencompass
1 Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. EvergreenEvergreen
Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.Kong)
(Hong
Ltd.Kong) Ltd. 3 3 3 Operating Operating
cost Operating
cost cost 986,885 986,885 986,885
" " " 0.58 0.58 0.58
1 Greencompass Marine S.A. Evergreen Marine Corp. (Malaysia) SDN BHD 3 Operating cost 164,311 " 0.10
1 1
Greencompass
Greencompass
1 Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. Everport Terminal
Everport Services
Terminal
EverportInc.
Services
TerminalInc.
cost Operating
cost cost 1,300,513 1,300,513 1,300,513
" " " 0.77 0.77 0.77
2 Evergreen Marine (UK) Limited Greencompass Marine S.A. 3 Operating revenue 968,342 " 0.57
1 1
Greencompass
Greencompass
1 Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. EvergreenEvergreen
Marine Corp.
Evergreen
Marine
(Malaysia)
Corp.
Marine
(Malaysia)
SDN
Corp.
BHD(Malaysia)
SDN BHDSDN BHD 3 3 3 Operating Operating
cost Operating
cost cost 164,311 164,311 164,311
" " " 0.10 0.10 0.10
2 Evergreen Marine (UK) Limited Greencompass Marine S.A. 3 Operating cost 1,608,121 " 0.95
2 2
Evergreen 2
Evergreen
Marine (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited Greencompass
Greencompass
Marine
Greencompass
S.A.
Marine S.A.
revenue Operating
revenue revenue 968,342 968,342 968,342
" " " 0.57 0.57 0.57
2 Evergreen Marine (UK) Limited Everport Terminal Services Inc. 3 Operating cost 3,662,221 " 2.16
2 2
Evergreen 2
Evergreen
Marine (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited Greencompass
Greencompass
Marine
Greencompass
S.A.
Marine S.A.
cost Operating
cost cost 1,608,121 1,608,121 1,608,121
" " " 0.95 0.95 0.95
2 Evergreen Marine (UK) Limited Everport Terminal Services Inc. 3 Account payable 181,951 " 0.08
2 2
Evergreen 2
Evergreen
Marine (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited Everport Terminal
Everport Services
Terminal
EverportInc.
Services
TerminalInc.
cost Operating
cost cost 3,662,221 3,662,221 3,662,221
" " " 2.16 2.16 2.16
2 Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. 3 Operating revenue 883,133 " 0.52
2 2
EvergreenEvergreen
Marine
22 (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited Everport Terminal
Everport Services
Terminal
EverportInc.
Services
Terminal Services Inc. 3 33 3 Account payable
Account payable
Account payable 181,951 181,951 181,951
264,318
" " " " 0.08
0.16
0.08 0.08
Evergreen Marine (UK) Limited Evergreen Marine (HongInc.
Kong) Ltd. Operating cost
2 2
EvergreenEvergreen
Marine
23 (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited Evergreen Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.
Kong)
(Hong
Ltd.Kong) 3 33 3 Operating Operating
revenue revenue 883,133 883,133 883,133
1,861,135 " " " " 0.52
1.10 0.52 0.52
Evergreen Heavy Industrial Co., (Malaysia) Berhad Evergreen
Evergreen Marine (Hong Kong) Ltd. Ltd. OperatingOperating
revenue revenue
2 2
EvergreenEvergreen
Marine
23 (UK)
Evergreen
Marine
Limited
(UK)
Marine
Limited
(UK) Limited Evergreen Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.
Kong)
(Hong
Ltd.Kong) 3 3 3 Operating Operating Operating
cost cost 264,318 264,318 264,318
369,255 " " " 0.16
0.16 0.16 0.16
Evergreen Heavy Industrial Co., (Malaysia) Berhad Evergreen
Evergreen Marine (Hong Kong) Ltd. Ltd. 3 Account
costreceivables "
3 3
Evergreen 3
Evergreen
Heavy Industrial
Evergreen
Heavy Co.,
Industrial
Heavy
(Malaysia)
Co.,
Industrial
(Malaysia)
Berhad
Co., (Malaysia)
Berhad
Evergreen
Berhad
Evergreen
Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.Kong)
(Hong
Ltd.Kong) Ltd. 3 3 3 Operating Operating
revenue Operating
revenue revenue 1,861,135 1,861,135 1,861,135
" " " 1.10 1.10 1.10
3 3
Evergreen 3
Evergreen
Heavy Industrial
Evergreen
Heavy Co.,
Industrial
Heavy
(Malaysia)
Co.,
Industrial
(Malaysia)
Berhad
Co., (Malaysia)
Berhad
Evergreen
Berhad
Evergreen
Marine (Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.Kong)
(Hong
Ltd.Kong) Ltd. 3 3 3 Account receivables
Account receivables
Account receivables 369,255 369,255 369,255
" " " 0.16 0.16 0.16
2018 Annual Report
423
424
Transaction

(Note 3)
4 Evergreen Marine (Hong Kong) Ltd. Greencompass Marine S.A. 3 Operating cost $ 231,885 Note 4 0.14
4 Evergreen Marine (Hong Kong) Ltd. Greencompass Marine S.A. 3 Shipowner's account - credit 325,710 " 0.14
4 Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (UK) Limited 3 Shipowner's account - credit 234,668 " 0.10
4 Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. 3 Operating cost 269,625 " 0.16
4 Evergreen Marine (Hong Kong) Ltd. Master International Shipping Agency Co., Ltd. 3 Account payable 108,813 " 0.05
5 Master International Shipping Agency Co., Ltd. Evergreen Marine (Hong Kong) Ltd. 3 Operating revenue 106,357 " 0.06
6 Peony Investment S.A. Clove Holding Ltd. 3 Other receivables 621,046 " 0.27
7 Evergreen Shipping Agency (Europe) GmbH Greencompass Marine S.A. 3 Operating revenue 415,318 " 0.25
7 Evergreen Shipping Agency (Europe) GmbH Greencompass Marine S.A. 3 Shipowner's account - credit 385,266 " 0.17
7 Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Operating revenue 199,075 " 0.12
7 Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (Hong Kong) Ltd. 3 Shipowner's account - credit 188,978 " 0.08
Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between
subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;
for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company
(3) Subsidiary to subsidiary
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on
accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Terms are approximately the same as for general transactions.
Note 5: The Company may decide whether or not to disclose transaction details in this table based on the Materiality Principle.
Evergreen Marine
Evergreen
Corporation
Evergreen
(Taiwan)
Marine Corporation
Marine Corporation Ltd.
(Taiwan)
(Taiwan) Ltd.
(Taiwan) Ltd.
Ltd.
on investees
Information
InformationInformation
Information (not
onon including
investees
investees investees
on (not (not
(notinvestee company
including
including including
investee investee
Mainland
ofcompany
investeecompany company
ofofChina)
Mainland of
Mainland Mainland
China) China)
China)
For
For the yearFor the
the year
ended ended
December
Forended December
December
the year
31, ended 31,2018
2018 31,
December
2018 31, 2018
able 8 Table 8
Table 8 Table Expressed
Expressed in in thousands
Expressed
thousands shares/thousands
Expressed
in of
thousands
ofshares/thousands
in thousands
of shares/thousands
of
ofNTD
NTD
shares/thousands
of NTD of NTD
Initial investment
Initial investment
Initial investment
amount amount
Initial investment
amount amount Shares
Shares held held
Shares
as of as of
December
held
Shares
asDecember
of held
December
31, 2018
as 31, 2018
of December
31, 2018 31, 2018
Investment income
income (loss)
(loss)
Investment
income (loss)
income (loss)
Net profit (loss) of the investee InvestmentInvestment
Net profit (loss)
Net profit
of the
Net
(loss)
investee
profit
of the
(loss)
investee
of the investee
Investor Investee (Note 1) Location Main business activities by the Company
For the year ended December recognised recognised recognised
by the Company Company
by theFootnote
Investor Investor Investor Investee (Note
Investee
1) (Note
Investee
1) (Note
Location
1) Location Main
Location
business
Mainactivities
business
Mainactivities
business activities Balance as of Balance as of Number of Ownership For the yearFor
ended
the year
December
Forended
the year
December
ended
For December
the year ended December Footnote Footnote Footnote
Balance as Balance
of asBalance
ofBalance
as as
of Balance
of asBalance
Number
of as
ofNumber
of Ownership
ofNumber
Ownership
of Book value
Ownership 31, 2018 (Note 1(2)) For the yearFor
ended
the year
December
Forended
the year
December
ended December
December 31, 2018 December 31, 2017 shares (%) Book valueBook value
Book value
31, 2018 (Note
31, 2018
1(2))(Note
31, 2018
1(2))
(Note 31, 2018 (Note 1(3))
1(2))
December December
31, 2018 December
31,
December
2018 31,December
31,
2018
2017 December
31, 2017
shares31, 2017
shares(%) shares (%) (%) 31, 2018 (Note
31, 2018
1(3))(Note
31, 2018
1(3))
(Note 1(3))
Republic of Subsidiary of the

Evergreen Marine Corp. Peony Investment S.A. Republic ofRepublic of
RepublicInvestment
of activities $ 14,654,043 $ 14,654,043 4,765 100.00 $ 28,732,006 ($ 1,888,994) ($ 1,896,945) Subsidiary Subsidiary
of the Subsidiary
of the of the
vergreen Marine
Evergreen
Corp.
Evergreen
MarinePeony
Corp.
Marine
Investment
Peony
Corp. Investment
S.A.
Peony Investment
S.A. S.A. Panama
Investment Investment
activities Investment
activities activities$ 14,654,043
$ 14,654,043
$ $ 14,654,043
14,654,043
$ 14,654,043
$ 14,654,043
4,765 4,765 $100.00
100.00 4,765 28,732,006
$100.00
28,732,006
($ $ 28,732,006
($ ($1,888,994)1,888,994)
($ 1,888,994)
($ 1,896,945)
($ Company
1,896,945)
1,896,945)
Panama Panama Panama Company Company Company
Taiwan Terminal Services Co., Ltd. Taiwan 55,000 55,000 5,500 55.00 53,286 27,476 15,112 Ƀ
Loading and container
Loading
discharging
and yards
Loading
discharging
operations
and discharging
operations
of operations
of of
Taiwan Terminal
TaiwanServices
Terminal
TaiwanCo.,
Services
Terminal
Ltd. Co.,
Services
Ltd.
Taiwan
Co., Ltd.Taiwan Taiwan 55,000 55,000 55,000
55,000 55,0005,500
55,000 5,500
55.00 5,50055.00 53,286
55.00 53,286 53,286 27,476 27,476 27,476 15,112 15,112 Ƀ15,112 Ƀ Ƀ
container yards
container container
yards yards
Everport Terminal Services Inc. U.S.A Terminal services 3,075 3,075 1 94.43 1,047,007 553,979 523,115 Ƀ
Everport Terminal
EverportServices
Terminal
EverportInc.
Services
TerminalInc.
Services
U.S.A
Inc. U.S.A
Terminal U.S.A
services
Terminal services
Terminal services 3,075 3,075 3,075
3,075 3,075 13,075 94.43
1 194.43
1,047,007
94.43
1,047,0071,047,007 553,979 553,979 553,979 523,115 523,115 Ƀ
523,115 Ƀ Ƀ
Evergreen Marine (Hong Kong) Ltd. Hong Kong Marine transportation 6,438,245 6,438,245 6,320 79.00 7,218,598 979,323 773,665 Ƀ
Evergreen Marine
Evergreen
(Hong
Evergreen
Marine
Kong)
(Hong
Marine
Ltd.Kong)
(Hong
Hong
Ltd.Kong)
KongLtd.
Hong
Marine
Kong
Hong
transportation
Marine
Kong transportation
Marine transportation 6,438,245 6,438,2456,438,245
6,438,245 6,438,2456,320
6,438,245 6,320
79.00 6,32079.00
7,218,598
79.00
7,218,5987,218,598 979,323 979,323 979,323 773,665 773,665 Ƀ
773,665 Ƀ Ƀ
Development, rental, sale of Investee accounted for
Charng Yang Development Co.,Ltd. Taiwan 320,000 320,000 58,542 40.00 544,057 171,613 68,645
residential and commercial buildings using equity method
Development,Development,
rental,Development,
sale rental,
of salerental,
of sale of Investee accounted
Investee for
accounted
Investee accounted
for for
Charng Yang
Charng
Development
Yang
Charng
Development
Co.,Ltd.
Yang Development
Co.,Ltd.
Taiwan
Co.,Ltd.
Taiwan Taiwan 320,000 320,000 320,000
320,000 320,000
58,542
320,00058,542
40.0058,54240.00544,057
40.00544,057 544,057 171,613 171,613 171,613 68,645 68,645 68,645
residential residential
and commercial
residential
and commercial
buildings
and commercial
buildings buildings using equity
using
method
equity
using
method
equity method
Evergreen International Storage and Container transportation and gas
Taiwan 4,840,408 4,753,514 430,692 40.36 8,884,659 863,837 348,173 Ƀ
Transport Corporation stations
EvergreenEvergreen
International
StorageInternational
andStorage and
Storage and Container transportation
ContainerContainer
transportation
and gas
transportation
and gas and gas
Taiwan Taiwan Taiwan 4,840,408 4,840,4084,840,408
4,753,514 4,753,514
430,692
4,753,514
430,692
40.36
430,69240.36
8,884,659
40.36
8,884,6598,884,659 863,837 863,837 863,837 348,173 348,173 Ƀ
348,173 Ƀ Ƀ
Transport Transport
Corporation
Corporation stations stations stations
Evergreen Security Corporation Taiwan General security guards services 25,000 25,000 6,336 31.25 111,665 49,790 15,560 Ƀ
Evergreen Security
Evergreen
Taiwan Taiwan International
General security
Taiwan
Generalguards
security
General passengers
services
guards
security and cargo
services
guards services 25,000 25,000 25,000
25,000 25,0006,336
25,000 6,336
31.25 6,33631.25111,665
31.25111,665 111,665 49,790 49,790 49,790 15,560 15,560 Ƀ15,560 Ƀ Ƀ
EVA Airways Corporation Taiwan 10,767,879 10,767,879 714,825 16.31 10,334,116 6,552,827 1,068,918 Ƀ
transportation
Taipei Port Container Terminal International
International
passengers
International
passengers
and cargopassengers
and cargo and cargo
EVA Airways
EVA Corporation
Airways
EVACorporation
Airways Corporation
Taiwan Taiwan TaiwanContainer distribution and cargo
Taiwan 10,767,87910,767,87910,767,879
1,094,073 10,767,87910,767,879
714,825
1,094,073 10,767,879
714,825
109,378 16.31
714,825
16.31
21.0310,334,116
16.31
10,334,116
1,026,338 10,334,116 6,552,827 6,552,8276,552,827 1,068,918
234,439 ɃɃ
49,3121,068,9181,068,918 Ƀ Ƀ
Corporation transportation
transportation
transportation
stevedoring
Taipei PortTaipei
Container
Port
Taipei
Terminal
Container
EvergreenPort Container
Terminal
Marine Terminal
(Latin America), Container
Republic distribution
ContainerContainer
of distribution
and cargodistribution
and cargo and cargo
Taiwan Taiwan Taiwan Management consultancy 1,094,073 1,094,073 1,094,073 1,094,073
3,2291,094,073 109,378
3,229 1,094,073
109,378 109,378
105 21.03 21.03
17.50 1,026,338
21.03
1,026,3381,026,338
3,474 234,439
1,371234,439 234,439 49,312
240 49,312 Ƀ
Ƀ49,312 Ƀ Ƀ
Corporation
S.A. stevedoring
Panamastevedoring stevedoring
Evergreen Marine
Evergreen
(Latin
Evergreen
Marine
America),
(Latin
Marine Republic
America),
(Latin ofRepublic of
America), Republic of
VIP Greenport Joint Stock Company
Management
Vietnam
Management
consultancy
Management
consultancy
consultancy 3,229 3,229
178,750
3,229 3,229 1053,229
3,229 178,750 105
13,750
10517.50 3,474
17.50 21.74 17.50 3,474
253,667
3,474 1,371
219,747
1,371 1,371 240
47,771
240 Ƀ 240 Ƀ
Ƀ
Ƀ
S.A. S.A. S.A. Panama Panama PanamaTerminal services
VIP Greenport
VIP Joint
Greenport
VIP
StockGreenport
Joint
Company
Stock
Joint
Company
Stock
Vietnam
Company
Vietnam
Terminal Vietnam
services
Terminal services
British Virgin Terminal services 178,750 178,750 178,750
178,750 178,750
13,750
178,75013,750
21.7413,75021.74253,667
21.74253,667 253,667 219,747 219,747 219,747 47,771 Indirect
47,771 subsidiary
Ƀ47,771 ofɃ Ƀ
Peony Investment S.A. Clove Holding Ltd. Investment holding company 1,616,074 1,616,074 10 100.00 2,752,969 42,847 42,847
Islands the Company
Evergreen Shipping British

Agency Virgin
British Virgin
(Europe) British Virgin Indirect subsidiary
Indirect of
subsidiary
Indirect subsidiary
of of
eony Investment
Peony Investment
S.A.
Peony Investment
Clove
S.A. Holding
Clove
S.A.Ltd.
Holding
CloveLtd.
Holding Ltd. Investment
Germany Investment
holding company
Investment
holding company
holding company 1,616,074 1,616,074 1,616,074 1,616,074
255,7461,616,074 10
255,746 1,616,074 10
-100.00 10
100.00
100.00 2,752,969
100.00
2,752,9692,752,969
299,158 42,847
17,957 42,847 42,847 42,847
17,957 42,847 Ƀ42,847
GmbH Islands Islands IslandsShipping agency the Companythe Company
the Company
Evergreen Shipping Agency (Korea)
Evergreen Shipping
EvergreenAgency
Evergreen
Shipping
(Europe)
Agency
Shipping(Europe)
Agency (Europe)
South Korea Shipping agency 74,608 74,608 121 100.00 48,857 12,772 12,772 Ƀ
Corporation
Germany Germany
Shipping
Germany
agency
Shipping agency
Shipping agency 255,746 255,746 255,746
255,746 255,746 255,746
- 100.00
- 100.00
- 299,158
100.00299,158 299,158 17,957 17,957 17,957 17,957 17,957 Ƀ17,957 Ƀ Ƀ
GmbH GmbH Evergreen
GmbH Shipping Agency (Poland)
Poland Shipping agency - 20,359 2 100.00 - - - Ƀ
SP.
Evergreen Shipping
EvergreenAgency
Evergreen
Shipping
ZO. O(Korea)
Agency
Shipping(Korea)
Agency (Korea)
South Korea
South
Shipping
Korea
South
agency
Shipping
Korea agency
Shipping agency 74,608 74,608 74,608
74,608 74,608 121
74,608 121
100.00 121
100.00 48,857
100.00 48,857 48,857 12,772 12,772 12,772 12,772 12,772 Ƀ12,772 Ƀ Ƀ
Corporation Republic of
Greencompass Marine S.A. Marine transportation 10,871,362 10,871,362 3,535 100.00 15,801,771 ( 1,334,891) ( 1,334,891) Ƀ
Evergreen Shipping
EvergreenAgency
Evergreen
Shipping
(Poland)
Agency
Shipping(Poland)
Agency (Poland) Panama
Poland Poland
ShippingPoland
agency
Shipping agency
Shipping agency - - 20,359
- 20,359 20,359
2 100.00
2 100.00
2 100.00
- - - - - - - - Ƀ - Ƀ Ƀ
SP. ZO. O SP. ZO. Evergreen O
OSP. ZO. Shipping Agency (India) Pvt.
India Shipping agency 36,188 36,188 100 99.99 142,568 45,819 45,818 Ƀ
Ltd. Republic ofRepublic of
Republic of
Greencompass
Greencompass
Marine
Greencompass
S.A.
Marine S.A.
Marine S.A. Marine transportation
Marine transportation
Marine transportation 10,871,36210,871,362
10,871,362
10,871,36210,871,362
10,871,362
3,535 3,535
100.00 3,535
100.00
15,801,771
100.00
15,801,771
( 15,801,771
( ( 1,334,891)1,334,891)
( 1,334,891)
( 1,334,891)
( Ƀ
1,334,891)1,334,891) Ƀ Ƀ
Panama Panama Panama
Evergreen Argentina S.A. Argentina Leasing 4,305 4,305 150 95.00 970 ( 7,407) ( 7,037) Ƀ
Evergreen Shipping
EvergreenAgency
Evergreen
Shipping
(India)
Agency
Shipping
Pvt.(India)
AgencyPvt.
(India) Pvt.
India India
Shipping agency
India
Shipping agency
Shipping agency 36,188 36,188 36,188
36,188 36,188 100
36,188 100
99.99 10099.99142,568
99.99142,568 142,568 45,819 45,819 45,819 45,818 45,818 Ƀ45,818 Ƀ Ƀ
Ltd. Ltd. Ltd.
Evergreen Argentina
EvergreenEvergreen
S.A.
ArgentinaArgentina
S.A. S.A.
Argentina Argentina
LeasingArgentina
Leasing Leasing 4,305 4,305 4,305
4,305 4,305 1504,305 150
95.00 15095.00 970
95.00( 970 ( 970 ( 7,407) ( 7,407) ( 7,407) ( 7,037) 7,037) Ƀ 7,037) Ƀ Ƀ
2018 Annual Report
425
426

Peony Investment S.A. PT. Multi Bina Pura International Indonesia container yards and inland $ 241,137 $ 241,137 17 95.03 $ 502,803 $ 114,147 $ 108,473
the Company
transportation
Container repair, cleaning and inland

PT. Multi Bina Transport Indonesia 24,735 24,735 2 17.39 14,248 5,914 1,028 Ƀ
transportation

Malaysia Container manufacturing 839,412 839,412 42,120 84.44 1,002,482 53,652 45,304 Ƀ
(Malaysia) Berhad
Armand Investment (Netherlands) N.V. Curacao Investment holding company 354,050 354,050 4 70.00 323,664 20,198 14,139 Ƀ
Evergreen Shipping (Spain) S.L. Spain Shipping agency 207,442 207,442 6 100.00 236,380 151,681 151,681 Ƀ

Italy Shipping agency 72,332 72,332 0.55 55.00 91,804 70,370 38,704 Ƀ
S.p.A.
Evergreen Marine (UK) Limited U.K Marine transportation 4,124,126 2,555,697 765 51.00 1,529,399 ( 1,333,238) ( 679,951) Ƀ
Evergreen Shipping Agency (Australia)
Australia Shipping agency 52,539 7,599 1 100.00 124,808 125,187 84,501 Ƀ
Pty. Ltd.
Evergreen Shipping Agency (Russia)
Russia Shipping agency 26,079 26,079 - 51.00 19,007 73,185 37,324 Ƀ
Ltd.
Singapore Shipping agency - 66,335 765 51.00 - - - Ƀ
(Singapore) Pte. Ltd.
Evergreen Shipping Agency (Thailand)
Thailand Shipping agency 68,980 61,199 680 85.00 105,232 78,830 67,005 Ƀ
Co., Ltd.
Evergreen Agency (South Africa) (Pty)
South Africa Shipping agency 17,868 17,868 5,500 55.00 100,350 127,945 70,370 Ƀ
Ltd.
Evergreen Shipping Agency (Vietnam)
Vietnam Shipping agency 37,858 13,962 - 100.00 167,404 138,967 138,967 Ƀ
Corp.
Investee company of
PT. Evergreen Shipping Agency
Indonesia Shipping agency 29,923 29,923 0.441 49.00 123,188 99,136 48,577 Peony accounted for
Indonesia
using equity method
Luanta Investment (Netherlands) N.V. Curaçao Investment holding company 1,461,999 1,453,949 460 50.00 1,933,827 ( 12,120) ( 6,060) Ƀ
Balsam Investment (Netherlands) N.V. Curaçao Investment holding company 12,091,859 11,639,782 0.451 49.00 658,599 ( 2,207,677) ( 1,081,762) Ƀ
Green Peninsula Agencies SDN. BHD. Malaysia Investment holding company 223,117 223,117 24 30.00 65 ( 380) ( 114) Ƀ
Evergreen Shipping Agency Co. United Arab

Shipping agency 64,029 64,029 - 49.00 78,903 80,200 39,298 Ƀ
(U.A.E.) LLC Emirates
Renting estate and storehouse
Greenpen Properties Sdn. Bhd. Malaysia 13,102 13,102 1,500 30.00 41,527 14,145 4,243 Ƀ
company
Evergreen Marine Corp. (Malaysia) Indirect subsidiary of

Malaysia Shipping agency 289,519 3,788 500 100.00 592,961 250,142 250,142
SDN.BHD. the Company
Investee company of
Evergreen Marine (Hong Kong) Ltd. Hong Kong Marine transportation 81,497 81,497 80 1.00 91,375 979,323 9,793 Peony accounted for
using equity method
Investee company of
Peony Investment S.A. Ics Depot Services Snd. Bhd. Malaysia Depot services $ 34,259 $ - 286 28.65 $ 60,962 $ 49,639 $ 6,591 Peony accounted for
using equity method
Armand Investment Indirect subsidiary of

Armand Estate B.V. Netherlands Investment holding company 520,839 520,839 - 100.00 466,259 20,915 20,915
(Netherlands ) N.V. the Company
Investee company of
Taipei Port Container Terminal Container distribution and cargo Armand Estate B.V.
Armand Estate B.V. Taiwan 50,602 50,602 50,602 9.73 474,046 234,439 22,811
Corporation stevedoring accounted for using
equity method
Investee company of
Republic of Clove Holding Ltd.
Clove Holding Ltd. Colon Container Terminal, S.A. Inland container storage and loading 703,025 703,025 22,860 40.00 2,645,712 50,352 20,141
Panama accounted for using
equity method
Investee company of
Clove Holding Ltd.
Everport Terminal Services Inc. U.S.A Terminal services 200,019 - 0.059 5.57 221,434 553,978 30,863
accounted for using
Investee company of
Evergreen Marine
Evergreen Marine (UK) Evergreen Marine (Latin America), Republic of
Management consultancy 3,045 3,045 99 16.50 3,275 1,371 226 (UK) Limited
Limited S.A. Panama
accounted for using
equity method
Investee company of
Everport Terminal
Everport Terminal
Whitney Equipment LLC. U.S.A Equipment Leasing Company 6,151 - - 100.00 192,943 23,716 23,716 Services Inc.
Services Inc.
accounted for using
equity method
PT. Multi Bina Pura Container repair cleaning and inland Indirect subsidiary of
PT. Multi Bina Transport Indonesia 101,530 101,530 8 72.95 59,771 5,914 4,314
International transportation the Company
Investee company of
Evergreen Marine
Evergreen Marine (Hong Republic of
Colon Container Terminal S.A. Inland container storage and loading 479,755 - 5,144 9.00 615,720 50,352 3,666 (Hong Kong) Limited
Kong) Limited Panama
accounted for using
equity method
Evergreen Marine (Latin America), Republic of

Management consultancy 3,045 3,045 99 16.50 3,275 1,371 226 Ƀ
S.A. Panama
Evergreen Shipping Service Indirect subsidiary of

Cambodia Shipping agency 6,151 3,998 200 100.00 12,376 6,107 6,107
(Cambodia) Co., Ltd. the Company
2018 Annual Report
427
428
Evergreen Marine (Hong Evergreen Shipping Agency (PERU) Indirect subsidiary of

Peru Shipping agency $ 8,537 $ - 900 60.00 $ 23,570 $ 25,292 $ 15,175
Kong) Limited S.A.C. the Company
Evergreen Shipping Agency (Colombia)

Colombia Shipping agency 10,796 - 80 100.00 ( 574) ( 10,981) ( 10,981) Ƀ
S.A.S
Evergreeb Shipping Agency (Mexico)

Mexico Shipping agency 7,049 - 44.40 60.00 10,580 5,819 3,491 Ƀ
S.A. DE C.V.
Evergreeb Shipping Agency

Chile Shipping agency 9,805 - 1.5 60.00 17,097 13,135 7,881 Ƀ
(CHILE)SPA.
Note 1: If situation does not belong to Note 1, fill in the columns according to the following regulations:
(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, ‘Initial investment amount’ and ‘Shares held as at December 31, 2018’ should fill orderly in the Company’s (public company’s) information on investees and every
directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.
(2) The ‘Net profit (loss) of the investee For the year ended December 31, 2018’ column should fill in amount of net profit (loss) of the investee for this period.
(3) The‘Investment income (loss) recognised by the Company For the year ended December 31, 2018’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and
recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should
confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.
Evergreen Marine
Evergreen
Corporation
Marine
Evergreen Evergreen
MarineCorporation
(Taiwan)
Marine
Ltd.
Corporation
(Taiwan) Ltd.(Taiwan) Ltd.
Ltd.
investments
Information Information
onInformationInformation
on Mainland
oninvestments
ininvestments China
investments
onin Mainland in Mainland China
China
MainlandChina
For
ended
For the year For the
theDecember
year ended
For the
yearended December
31, year 31,
2018ended
December 2018
31,December
2018 31, 2018
9 Table 9 Table
Table 99 Expressed
ExpressedinExpressed
inthousands
thousandsinof NTD
ofExpressed
thousands
NTD of
in thousands
NTD of NTD
Amount remittedAmountfrom Amount remitted from Taiwan to

remitted
Taiwan
Amount
from
to remitted
Taiwan from
to Taiwan to Investment
income
Investment
income income
Investment income Accumulted amount of
AccumulatedMainland Mainland China/Amount remitted Accumulated amount of Net income (loss) of Ownership heldInvestment
amount of Mainland China/Amount
remitted
Mainland China/Amount by (loss) recognised by amount of amount
Book value of Accumulted Accumulted Accumulted
of amount of
AccumulatedAccumulated
amount of Accumulated
amount of China/Amount
amount
back of Accumulated
remitted Accumulated
to Taiwan for the year amount
remittedof Accumulated
Net
amount
income
of (loss)
Net
amount
income
of ofOwnership
(loss)
Net income
of held
Ownership
(loss)
by (loss)
ofheldrecognised
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recognised
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Book byrecognised
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investment of
income
Investment method remittance from Taiwan to
Taiwanbackfor
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year
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ended
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ended year from Taiwan the investee for the the Company the Company. investments in investment income
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activities of
Mainland China asDecember 2018 31,December
2018 to Mainland China as of
31, 2018 year ended (direct of indirect) For the year ended Mainland China as of remitted back remitted
to back
Footnote
remitted
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to Footnote
(Note 1) (Note 1) Mainland
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the2018 December 31, 2018Taiwan as31,ofTaiwan
December as of Taiwan
December as of December
January 1, 2018
January 1, 2018
January 1, 2018 December 31,
December
2018 31,
December
December
2018 31,
December
31,2018
2018 31, December
2018
(%) 31, 2018
(%)
December 31,
(%)
December
2018 December
31,
December
2018 31,
December
31,
20182018 31,
December
2018 2018
31, 2018
Remitted to Remitted
Remitted
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Chinaback
Remittedto backRemitted
to Taiwan to back to (Note 2(2)B) 31, 2018 31, 2018 31, 2018
Mainland China Taiwan
Mainland China Mainland Taiwan
China Taiwan (Note 2(2)B)(Note 2(2)B)(Note 2(2)B)
Inland container
Inland container
Inland containerInland container
transportation, container
Ningbo Victory Container Co.,
transportation, Ltd. storage,
transportation,
container transportation,
container
loading, container$ 559,746 (2) $ 220,241 $ - $ - $ 220,241 $ 25,341 40.00 $ 10,137 $ 277,074 $ -
o Victory
Ningbo
Container
Victory
Ningbo
Co.,
Container
Ltd.
Victory
storage,
Co.,
Container
Ltd.
loading,
storage,
Co., Ltd.discharging,
loading, $
storage, loading,and
repair559,746
$ 559,746
$ (2) 559,746
(2)$ $
(2) 220,241 $ $220,241 $ 220,241
- $ $- $ - $ - $- $ 220,241- $$220,241 25,341
$ 220,241 25,341
$ 40.00
25,341
$ 40.00 $10,137
40.00$ 10,137
$ 277,074
$ 10,137 $277,074
$ $ 277,074
- $ - -
discharging, discharging,
repair and related
repairactivities
discharging,
and repair and
related activities Inland
related activities container
related activities
Inland container
Qingdao Evergreen Inland container
Container Inland container
loading, discharging, 190,353 (2) 43,575 - - 43,575 219,369 40.00 87,747 191,016 -
Storage & Transportation
transportation,Co., Ltd.
transportation,
storage, transportation,
storage, storage,
ao Evergreen
QingdaoContainer
Evergreen
QingdaoContainer
Evergreen Container repair, cleaning and
loading, discharging,
loading, discharging, 190,353
loading, discharging, 190,353(2) 190,353
(2) (2) 43,575 43,575 -43,575 - - - - 43,575- 43,575 219,369
43,575 219,369 40.00
219,369 40.00 87,747
40.00 87,747 191,016
87,747 191,016 191,016
- - -
ge & Transportation
Storage & Transportation
Storage
Co., Ltd.
& Transportation
Co., Ltd. Co., Ltd.related activities
repair, cleaning
repair,
andcleaning
repair,
and cleaning and
Inland container
related activities
related activities
related activities
Kingtrans Intl. Logistics
Inland (Tianjin)
container
Inland container container
loading,
Inlanddischarging, 349,038 (2) 123,014 168,076 - 291,090 28,027 56.00 11,631 246,811 -
Co., Ltd.
transportation,
transportation,
transportation,
storage,
storage,repair, cleaning andstorage,
rans Intl.
Kingtrans
Logistics
Intl.
(Tianjin)
Kingtrans
LogisticsIntl.
(Tianjin)
Logistics (Tianjin)
loading, discharging, related activities
loading, discharging,
loading, 349,038
discharging, 349,038(2) 349,038
(2) (2) 123,014 123,014
168,076
123,014
168,076 168,076
- - 291,090- 291,090 28,027
291,090 28,027 56.00
28,027 56.00 11,631
56.00 11,631 246,811
11,631 246,811 246,811
- - -
td. Co., Ltd. Co., Ltd.
repair, cleaning
repair,
andcleaning
repair,
and cleaning
Management and
consultancy,
Ever Shine (Shanghai) Enterprise
related activities
related activities
related activities
self-owned property 1,945,977 (2) 2,505,191 - - 2,505,191 22,555 80.00 ( 56,013) 3,332,384 -
ManagementManagement leasing
consultancy,Management
consultancy, consultancy,
Shine (Shanghai)
(Shanghai)
(Shanghai) Enterprise
self-owned property property
self-ownedManagement 1,945,977
property 1,945,977(2) 1,945,977
self-ownedconsultancy, (2) (2) 2,505,191 2,505,191 2,505,191
- - - - - 2,505,191- 2,505,191 22,555
2,505,191 22,555 80.00
22,555
( 80.00 ( 56,013)
80.00 (56,013)3,332,384
56,013)3,332,384 3,332,384
- - -
gementManagement
Consulting Co.,
Management
Consulting
EverLtd. Co.,
Consulting
Shine (Ningbo) Co., Ltd.
Ltd.Enterprise
leasing leasing self-owned
leasing property 192,593 (2) 277,147 - - 277,147 ( 1,239) 80.00 ( 934) 152,305 -
leasing
ManagementManagement
Shine (Ningbo)
Ever Shine
Enterprise
(Ningbo)
Ever Shine
Enterprise
(Ningbo) Enterprise Management consultancy,
Shine (Shenzhen)
property
self-owned property
self-ownedEnterprise 192,593
self-owned property 192,593(2) 192,593
(2) (2) 277,147 277,147 277,147
- - - - - 277,147- ( 277,147 ( 1,239)
277,147 (1,239) 80.001,239)
( 80.00 ( 934)
80.00 ( 934) 152,305
934) 152,305 152,305
- - -
gementManagement
Consulting Co.,
Management
Consulting
EverLtd. Co.,
Consulting
Ltd. Co., Ltd. self-owned property 274,765 (2) - 482,230 - 482,230 2,813 80.00 ( 570) 417,532 -
Managementleasing leasing
Consulting Co., Ltd. leasing
leasing
Shine (Shenzhen)
Ever Shine Enterprise
(Shenzhen)
(Shenzhen) Enterprise Management consultancy,
self-owned
Ever Shine (Qingdao) property
self-owned property
Enterprise 274,765
(2) (2) - 482,230
- 482,230
- 482,230
- - 482,230- 482,230 2,813
482,230 2,813 80.002,813
( 80.00 ( 570)
80.00 ( 570) 417,532
570) 417,532 417,532
- - -
gementManagement
Consulting Co.,
Management
Consulting
Ltd. Co., Consulting
Ltd. Co., Ltd. self-owned property 222,781 (2) - 393,103 - 393,103 1,778 80.00 ( 145) 250,770 -
Consulting Co.,
Managementleasing Ltd.
leasing leasing
leasing
Shine (Qingdao)
(Qingdao)
Ever Shine
Enterprise
(Qingdao) Enterprise
self-owned property
self-owned property 222,781
(2) (2) - 393,103
- 393,103
- 393,103
- - 393,103- 393,103 1,778
393,103 1,778 80.001,778
( 80.00 ( 145)
80.00 ( 145) 250,770
145) 250,770 250,770
- - -
gementManagement
Consulting Co.,
Management
Consulting
Ltd. Co.,Consulting
Ltd. Co., Ltd.
leasing leasing leasing
2018 Annual Report
429
430
Mainland China/Amount remitted Accumulted amount of
Accumulated amount of Accumulated amount of Net income (loss) of Ownership held by (loss) recognised by Book value of
back to Taiwan for the year ended investment income
Investment method remittance from Taiwan to remittance from Taiwan the investee for the the Company the Company. investments in
Investee in Mainland China Main business activities Paid-in capital December 31, 2018 remitted back to Footnote
(Note 1) Mainland China as of to Mainland China as of year ended (direct of indirect) For the year ended Mainland China as of
Taiwan as of December
January 1, 2018 Remitted to Remitted back to December 31, 2018 December 31, 2018 (%) December 31, 2018 December 31, 2018
31, 2018
Mainland China Taiwan (Note 2(2)B)
Inland container
loading, discharging, $ 22,395 (2) $ - $ 84,904 $ - $ 84,904 $ 48,085 39.20 $ 1,879 $ 32,023 $ -
Agency Co., Ltd.
passenger transportation
and related activities
Investment amount Ceiling on

approved by the investments in
Accumulated amount of
Investment Mainland China

remittance from Taiwan to
Company name Commission of the imposed by the
Mainland China as of
Ministry of Investment
December 31, 2018
Economic Affairs Commission of
(MOEA) MOEA
Evergreen Marine Corp. $ 4,297,481 $ 4,864,612 $ 40,106,538
Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company, Peony Investment S.A. and Evergreen Marine (Hong Kong) Ltd., in the third area, which then invested in the investee in Mainland China.
(3) Others
Note 2: In the ‘Investment income (loss) recognised by the Company for the year ended December 31, 2018’ column:
(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B. The financial statements that are audited and attested by R.O.C. parent company’s CPA.
C. Others.
Note 3: The numbers in this table are expressed in New Taiwan Dollars.
7 Review of Financial Conditions, Financial Performance, and Risk Management 2018 Annual Report
I. Analysis of Financial Status

Unit: NT$ thousands
Year Difference
2018 2017
Item Amount %
Current Assets 67,898,508 60,951,228 6,947,280 11.40%
Non-current assets 161,113,447 139,128,669 21,984,778 15.80%
Total Assets 229,011,955 200,079,897 28,932,058 14.46%
Current Liabilities 50,061,985 44,760,401 5,301,584 11.84%
Non-current liabilities 107,982,134 88,630,706 19,351,428 21.83%
Total Liabilities 158,044,119 133,391,107 24,653,012 18.48%
Common stock 45,129,738 40,123,560 5,006,178 12.48%
Capital surplus 11,059,145 10,838,075 221,070 2.04%
Retained Earnings 9,462,191 11,754,606 (2,292,415) -19.50%
Other equity interest 1,193,156 682,313 510,843 74.87%
Equity attributable to owners

66,844,230 63,398,554 3,445,676 5.43%
of the parent
Non-controlling interest 4,123,606 3,290,236 833,370 25.33%
Total equity 70,967,836 66,688,790 4,279,046 6.42%
Analysis of changes in financial ratios:

(1) The increase of non-current liabilities principally resulted from the loans and the issuance of the
corporate bonds.
(2) Owing to the appreciation of foreign exchange rate for US dollar against New Taiwan Dollar at the
end of 2018, compared with 2017, the exchange profit on translation of foreign financial statements
was increased. As a consequence, other equity was increased as well.
(3) The capital and the profit of subsidiaries for 2018 were comparatively higher than 2017; therefore,
non-controlling Interests was increased
431
7 Review of Financial Conditions, Financial Per formance, and Risk Management
II. Analysis of Financial Performance

Unit: NT$ thousands
Year Difference
2018 2017
Item Amount %
Operating revenue 169,236,653 150,582,692 18,653,961 12.39%
Operating costs 161,771,163 139,693,568 22,077,595 15.80%
Gross profit 7,465,490 10,889,124 (3,423,634) -31.44%
Unrealized profit from sales (8,131) (27,306) 19,175 -70.22%
Realized profit on from sales 13,509 12,469 1,040 8.34%
Gross profit 7,470,868 10,874,287 (3,403,419) -31.30%
Operating expenses 8,054,981 6,558,601 1,496,380 22.82%
Other gains - net 1,510,330 501,784 1,008,546 200.99%
Operating profit (loss) 926,217 4,817,470 (3,891,253) -80.77%
non-operating income and expenses 269,187 2,630,079 (2,360,892) -89.77%
Profit (loss) before income tax 1,195,404 7,447,549 (6,252,145) -83.95%
Income tax expense 1,116,903 785,928 330,975 42.11%
Profit (loss) 78,501 6,661,621 (6,583,120) -98.82%
Owners of the parent 293,919 7,005,171 (6,711,252) -95.80%
Non-controlling interest (215,418) (343,550) 128,132 -37.30%
Other comprehensive income (loss) 575,603 (2,971,907) 3,547,510 -119.37%
Comprehensive income (loss) 654,104 3,689,714 (3,035,610) -82.27%
Owners of the parent 1,031,164 4,562,000 (3,530,836) -77.40%
Non-controlling interest (377,060) (872,286) 495,226 -56.77%
Analysis of changes in financial ratios:

(1) Given that both the marine freight volume and oil costs were higher than last year, the operating
revenue and operating costs respectively went up by 12.39% and 15.80%, which brought about
the decrease of gross profit.
(2) The total net unrealized profit from sales was less than last year, which was mainly due to the
decrease of transactions between the related parties in 2018.
(3) The operating expenses were higher than last year since the group merged new subsidiary
companies.
(4) The net amount of other gains was higher than last year, owing to the increase of net gains on the
disposal of property, plants and equipment.
(5) The total net non-operating income was less than last year on account of the comparatively lower
share of profit of associates & joint ventures accounted for the using equity method in 2018.
432
2018 Annual Report
III. Analysis of Cash Flow

1. Cash Flow Analysis for the Current Year
Unit: NT$ thousands
Cash and Net Cash Leverage of Cash Deficit

Net Cash
Cash Inflow Cash
Flow from
Equivalents, (Outflow) fom Surplus
Operating Investment Financing
Beginning Investment (Deficit)
Activities
of Year and Financing (1)+(2)-(3) Plans Plans
(2)
(1) (3)
38,108,263 3,045,171 (2,922,912) 38,230,522 - -
Analysis of deviation:
A. Operating activities: Estimated cash flow generated from operating activities
B. Investing activities: The net cash outflow is due to the investment accounted for the using
equity method and the purchase of the vessels, containers and equipment.
C. Financing activities: The net cash inflow from the bank borrowing.
Remedy Measures of Inadequate Liquidity: None.
2. Cash Flow Analysis for the Coming Yearr

Unit: NT$ thousands
Estimated Leverage of Cash

Estimated Estimated Net
Cash and Estimated Surplus (Deficit)
Net Cash Cash Inflow
Cash Cash
Flow from (Outflow) fom
Equivalents, Surplus
Operating Investment
Beginning (Deficit) Investment Financing
Activities and Financing
of Year (1)+(2)-(3) Plans Plans
(2) (3)
(1)
38,230,522 6,143,202 (4,887,383) 39,486,341 - -
Analysis of cash flow deviation:

A. Cash balance at the beginning of the period: cash and cash equivalents for December 31,
2018.
B. Net cash flow from operating activities throughout the year: Estimated cash flow from
operating activities.
C. Net cash flow from Investment and financing: Repayment of bank borrowing and purchase
of fixed assets.
IV. Major Capital Expenditure Items

1. Major Capital Expenditure Items and Source of Capital
(1) Shipbuilding: The actual or expected source of funds is self-owned funds and
mortgages after obtaining ownership of the assets. The following table shows the
ship's delivery date, the total amount of funds required, and the use of funds.
433
Unit: US$ thousands
Actual or Actual or Expected Capital Expenditure

Planned Total
Date of Capital
2018 2019 2020 2021
Completion
2018 525,761 444,514
2019 158,897 21,874 137,023
2020 634,247 66,446 97,304 470,497
2021 342,240 33,596 33,243 56,273 219,128
(2) Leased improvements: From 2019 to 2020, chartered container vessels will have
SOx scrubbers installed. It is estimated that the total amount will be US$33,548
thousand.
(3) Containers and Refrigeration units: The Company purchased 82,950 containers from
434
2018 Annual Report
China International Marine Containers (Group) Co., Ltd., CXIC Group Containers
Company Limited, Singamas Container Holdings Limited and Evergreen Heavy
Industrial Corp. (Malaysia) in 2018 and 3,000 refrigeration units from Carrier
Transicold Pte. Ltd. The transaction price totaled US$ 263,088 thousand.
The Company will purchase 34,750 containers from Dong Fang International
Container (Hong Kong) Limited, CXIC Group Containers Company Limited and
Singamas Container Holdings Limited in 2019. The total transaction price is US$
85,812 thousand.
2. Expected Benefits
As new energy-efficient vessels and new containers join the operation, this will not only
optimize fleet capacity, increase slot supply and provide customers with a wider range of
services, but also reduce the company's operating costs.
V. Investment Policy in the Last Year, Main Causes for Profits or

Losses, Improvement Plans and Investment Plans for the Coming
Year
In order to seek the best interests for the Company and its shareholders, the Company
has undergone careful evaluation in investment and is not limited to the maritime industry.
The company continues to require indirect investees to seize market opportunities
and increase profits. The profit of investment accounted for using equity method is
NT$1,013,565 thousand in 2018.
VI. Analysis of Risk Management

1. Effects of Changes in Interest Rates, Foreign Exchange Rates and
Inflation on Corporate Finance, and Future Response Measures
(1) Interest rate
A. The impact of interest fluctuation on the consolidated company:
Item 2018 (NT$ thousands,%)
Net amount of interest (1,316,820)
Ratio of net amount of interest and sale

0.78%
revenue
Ratio of net amount of interest and income

110.16%
before tax
435
At the end of 2018, the interest change risks of the financial assets and financial
liabilities were NT$4,293,236 thousand and NT$94,486,405 thousand. If the market
rate increases 1%, the interest expense will be increased NT$901,932 thousand and
the ratio of operating costs to expenses will be 0.53%.
B. Corresponding measure
For the purpose of improving the financial structure, increase long term working
capital and decrease interest risks. EMC issued 8 billion in secured corporate bonds
with a 5 year tenor on April 25, 2017, and issued 2 billion in secured corporate
bonds with a 5 year tenor on June 27, 2018 with a fixed rate. It also fixed long term
capital costs and avoided the risk of an increase in the market rate. The conditions
of issue secured corporate bonds are as follows:
Content Secured Corporate Bonds
Coupon rate Fixed rate
Tenor 5 years
Repayment of 50% of the principal in the fourth year

Repayment method
and the remaining 50% in the fifth year
Issue date April 25, 2017
Unused principal None
Content Secured Corporate Bonds
Coupon rate Fixed rate
Tenor 5 years
Repayment method Repayment in lump sum upon maturity
Issue date June 27, 2018
Unused principal None
436
2018 Annual Report
(2) Foreign exchange rates

A. The impact of exchange rates fluctuation on net income :
Item 2018 (NT$ thousands,%)
Net currency exchange gains 308,013
Ratio of operating revenue and net currency

0.18%
exchange gains
Ratio of profit (loss) before income tax and

0.26%
net currency exchange gains
For the year ending December 31, 2018, net currency exchange gains were
NT$308,013 thousand. It was estimated as 0.18% of operating revenue and 0.26%
of profit before income tax respectively.
The information on assets and liabilities was denominated in certain subsidiaries’
functional currencies whose values would be materially affected by the exchange rate
fluctuations held by the Group for the year ending December 31, 2018 amounting
to NT$30,004,806 thousand and NT$31,126,230 thousand, respectively. From the
aspect of monetary items of financial assets, if the exchange rate of USD:NTD had
increased/decreased by 1%, net currency exchange gains would have increased/
decreased by NT$300,048 thousand. From the aspect of monetary items of financial
liabilities, if the exchange rate of USD:NTD had increased/decreased by 1%, net
currency exchange gains would have increased/decreased by NT$294,003 thousand.
If the exchange rate of HKD:USD had increased/decreased by 1%, net currency
exchange gains would have increased/decreased by NT$4,021 thousand. If the
exchange rate of GBP:USD had increased/decreased by 1%, net currency exchange
gains would have increased/decreased by NT$2,292 thousand. If the exchange rate
of RMB:USD had increased/decreased by 1%, net currency exchange gains would
have increased/decreased by NT$9,395 thousand. If the exchange rate of EUR:USD
had increased/decreased by 1%, net currency exchange gains would have increased/
decreased by NT$1,551 thousand.
B. Corresponding measure
As the freight income is mainly in USD, we pay attention to the exchange rate
fluctuation all the time and do the following actions:
a. Use a professional financial information system and keep close contact with
financial institutions to get the most updated exchange rate information and act
proactively.
b. Use the same currency of revenue to pay the expenses if possible in order to
perform natural hedging to prevent exchange rate risks.
437
c. Open foreign currency accounts and sdjust the foreign currency holding on
actual capital demand and the tendency of exchange rate.
(3) Inflation
The global economy started 2018 with stable growth, since unemployment in the
world’s major economies declined and the inflation rate rose steadily. But the momentum
faded as the year progressed and growth trends diverged. Most of this was due to trade
disputes between China and the United States, and also the volatility in the stock market.
According to the prediction by IHS Markit, the global GDP growth will be slightly reduced
to 3.2% from the previous year (2017). Despite crude oil falling sharply from October,
2018, the labor market in developed economies tightened. As a result, IHS Markit estimates
global inflation will rise from last year 2.7% to 3.0%.
Overlooking 2019, the main institutions, such as the World Bank, expect global
growth will edge down due to the risk of an escalation in trade conflicts, divergence of
monetary policy for global central banks, and political uncertainty in Europe. Although
the Organization of Petroleum Exporting Countries (OPEC) and allies agreed to cut
oil production, the expected U.S. oil production will be higher than 2018. In additions,
uncertainties that include U.S.-China trade tensions and political issues in Middle Eastern
countries caused the main institutions to change their 2019 average forecast range of
$62~$65 b/d for Brent oil. With lower expected price for oil in 2018, the estimation for
global inflation will not rise much if at all. Over the near term, IHS Markit estimates that
global inflation and inflation of developed economies will remain close to 3.0% and 2.0%,
respectively.
Since our service routes are around the world, we signed contracts with our suppliers to
reduce the volatility of main operation costs, such as port charges, stevedorage, and cargo
claims. Furthermore, we charge fuel surcharges to customers and regularly review market
conditions so as to reduce the risk of fuel price volatility.
2. Policies, Main Causes of Gain or Loss and Future Response Measures

with Respect to High-risk, High-leveraged Investments, Lending or
Endorsement Guarantees, and Derivatives Transactions
Currently there is no outstanding for providing loans to other parties. All endorsements
and guarantees are provided to the subsidiaries and affiliates. All related transactions are
arranged according to our guidelines of providing loans, endorsements, and guarantees to
other parties.
All derivatives trades are dealt with for hedging purposes. Interest rates and fuel swaps
agreements are to hedge risk derived from market volatilities and fluctuations.
3. Future Research & Development Projects and Corresponding Budget

(1) Application system reform and upgrade development Project
438
2018 Annual Report
(2) Empty/laden Container of Ocean & Inland Routing Optimization/Communication

Platform Development
(3) Manager Change of Vessel (COV) on Current Sailing Schedules and Integrated
Management Platform System Development
(4) Empty/Laden Container Ocean/inland combined transport Big Data Analysis
(5) Vessel spare parts allocation / transfer and reconditioning
(6) Big Data analysis for Vessel operation
(7) i-B/L & i-Dispatch of Bolero project enhancement & Optimize - Add L/C billing &
financing function with related Banks
(8) Blockchain Application Project-Development new function with related Bank for
financing of import bills
(9) Computerized of International large-scale customer Tender's shipment Bidding
operation
The company is expected to invest about NT$ 20.03 million in related services
expenditure on the above projects.
4. Effects of and Response to Changes in important policy and laws

Relating to Corporate Finance and Sales
The Company has complied with the relevant laws and regulations set by the competent
authorities, and is always aware of the adjustments and changes of the relevant laws and
regulations. The information and reporting operations of the Company are in compliance
with the laws and regulations. The Effects of and Changes in important policy and laws
don’t have significant impact on Corporate Finance and Sales in 2018.
5. Effects of and Response to Changes in Technology and the Industry

Relating to Corporate Finance and Sale: None.
6. The Impact of Changes in Corporate Image on Corporate Risk

Management, and the Company’s Response Measures
The company has established a comprehensive emergency response method, and
holds simulation exercises from time to time, which can effectively respond to various
emergencies and avoid the impact of corporate image.
7. Expected Benefits from, Risks Relating to and Response to Merger and

Acquisition Plans
On August 13, 2018, the company’s subsidiary, Evergreen Marine (Hong Kong)
Ltd.,had resolution of board of directors acquired and integrated with Hatsu Marine (Hong
Kong) Ltd. Integrate the general agent business in Greater China and take advantage of
resource integration. Improve operational performance and customer service quality.
439
8. Expected Benefits from, Risks Relating to and Response to Factory

Expansion Plans: N/A
9. Risks Relating to and Response to Excessive Concentration of

Purchasing Sources and Excessive Customer Concentration: None.
10. Effects of, Risks Relating to and Response to Large Share Transfers or
Changes in Shareholdings by Directors, Supervisors, or Shareholders
with Shareholdings of over 10%: None.
11. Effects of, Risks Relating to and Response to the Changes in Management
Rights: None.
12. Litigation or Non-litigation Matters: None.
13. Other Major Risks

(1) Evaluation of market risk and coping strategies
A. Risks of market management
In running each service string, we pay attention to territorial economic changes
and business impact from industry competitions. Our headquarters keeps close
contact with each overseas branch on market info and we set up a Line Manager for
dedicated management of each service string.
B. Risks of cost variation
In running each service string, we pay attention to flexibly managing diversified
fixed and variable costs. Cost-related departments of our company regularly
evaluate and update rolling budgets and we set up a dedicated Cost Control Team
and Fuel Purchase Team across departments to coordinate with the Line Managers
Team in enhancing operation performance to quickly fine-tune cost variations.
C. Risks of operation:
In running each service string, we ensure stability, safety, and regulatory
compliance of sailing schedules and related operations. Our company, aside from
personal dedication to individual ship operations in operation departments, also sets
up a Schedule Coordinating Center to work closely with the fleet deployment team
to keep our fleet safe and agile.
D. Risks of Information security
To enhance information security management, the company established the
"Information Security Committee". Including information security policies,
information security organizations and responsibilities, security classification of
information assets, personnel training, computer system security management,
440
2018 Annual Report
network security management, system access control, system development

and maintenance of safety management, physical and environmental safety
management, business sustainability plan and internal auditing and reports regularly
to the board of directors.
The Company Information Security Architecture:
• Set Policy on best updated regulations

• Follow individual country regulations for information
security
Policy • Personnel Training

• Computer system security management
• Network security management
• System Access Control
• System development and Maintenance of safety
Standard management
• Information asset security management
• Physical and environment safety management
Orientation • Planning and management of Sustainable
Procedures
• Developing implementation details based on the
information security policy
• Routine schedule in operation plan rehearsal
• Staff information security education and training
• Information Security Committee Enforcement of information security policy and
•
• Set up information Security policy discipline for any violation
• Update action plan timely
• Review performance
(2) Strategies and Evaluations for Business Operating Risks

In addition to the dedication from each department head and each special cross-
department team to reduce risks, we also have a Project Department to consolidate
operating strategies and risk managements, to plan and coordinate related implementation.
14. In-charge Departments of Risk Managements

An In Auditing Department was also set up to schedule annual auditing plans to inspect
and evaluate the implementation of risk management in each department, to make sure they
are workable. Our risk management is assigned and organized as below table:
441
Risk Management In-charge Department Functions
To plan company
strategies, to evaluate
Strategies & Business cost efficiencies, to design
Project Department
Operating Risks service strings and fleet,
and to supervise business
administrations, etc.
Project Department
Line Manager
To plan strategies and
Cost Control Team
evaluate risks within and
Market Risks Fuel Purchase Team
across each in-charge
Schedule Coordinating
department.
Center
All Department Heads
Corporate legal affairs

including contracts
and litigation. Establish
Legal Dept. (Competition
company’s regulatory
Law Risks Compliance Team
compliances, provide
Included)
training and ensure
compliance with
competition regulations.
To audit executions of
Risk Management
Auditing Department risk management in each
Auditing
department.
VII.Other important issues: None.
442
8 Special Disclosure 2018 Annual Report
I. Summary of Affiliated Companies

1. Subsidiaries business report
(1) EMC Subsidiaries Chart
5.57% 100% CLOVE

100% Whitney
EVERPORT
100%
EEU
100%
EGK
94.43% 100%
GMS
100%
EES
100% EMA
55%
TTSC 100% 100%
EGV EVSSHG
100%
EGM 100%
99.99%
EVSNBO
EGI
72.95% 100%
95.03% MBT EVSXZN
MBPI
100% 17.39% 100%
EMC PEONY 95% EGB EVSQND
85% EGT 100%

EKH
84.44%
EHIC(M) 100%
70% 100% ECO
ARMAND N.V. ARMAND B.V.
79% 55% 60%
1% ESA EPE
55%
EIT 60%
51%
EMX
20%
ERU
51% 60%
KTIL
20% ECL
EMU
20%
EGH 49%
20% MAC
443
8 Special Disclosure
EMC : Evergreen Marine Corporation (Taiwan) LTD.

PEONY : Peony Investment S.A.
EVERPORT : Everport Terminal Services Inc.
EGH : Evergreen Marine (Hong Kong) Ltd.
TTSC : Taiwan Terminal Services Corp. Ltd.
CLOVE : Clove Holding Ltd.
Whitney : Whitney Equipment LLC.
EEU : Evergreen Shipping Agency (Europe) GmbH
EGK : Evergreen Shipping Agency (Korea) Corporation
GMS : Greencompass Marine S.A.
EES : Evergreen Shipping (Spain) S.L .
EMA : Evergreen Shipping Agency (Australia) Pty. Ltd.
EGV : Evergreen Shipping Agency (Vietnam) Corp.
EGM : Evergreen Marine Corp. (Malaysia) SDN. BHD.
EGI : Evergreen Shipping Agency (India) Pvt. Ltd.
MBPI : PT. Multi Bina Pura International
MBT : PT. Multi Bina Transport
EGB : Evergreen Argentina S.A.
EGT : Evergreen Shipping Agency (Thailand) Co., Ltd.
EHIC (M) : Evergreen Heavy Industrial Corp. (Malaysia) Berhad
ARMAND N.V. : Armand Investment (Netherlands) N.V.
ARMAND B.V. : Armand Estate B.V.
ESA : Evergreen Agency (South Africa) (Pty) Ltd.
EIT : Evergreen Shipping Agency (Italy) S.p.A.
ERU : Evergreen Shipping Agency (Russia) Ltd.
EMU : Evergreen Marine (UK) Limited
KTIL : Kingtrans Intl. Logistics (Tianjin) Co., Ltd.
EVSSHG : Ever Shine (Shanghai) Enterprise Management Consulting Co., Ltd.
EVSNBO : Ever Shine (Ningbo) Enterprise Management Consulting Co.,Ltd.
EVSXZN : Ever Shine (Shenzhen) Enterprise Management Consulting Co., Ltd.
EVSQND : Ever Shine (Qingdao) Enterprise Management Consulting Co., Ltd.
EKH : Evergreen Shipping Service (Cambodia) Co., Ltd.
ECO : Evergreen Shipping Agency (Colombia) S.A.S.
EPE : Evergreen Shipping Agency (Peru) S.A.C.
EMX : Evergreen Shipping Agency (Mexico) S.A.De C.V.
ECL : Evergreen Shipping Agency (Chile) SPA.
MAC : Master International Shipping Agency Co., Ltd.
444
(2) Basic information of Subsidiaries (As of DEC. 31, 2018)
Expressed in thousands of local currency
Date
Company Location Capital Main Business Activities
Founded
East 53rd Street, Marbella, Humboldt Building,
Peony Investment S.A. Jan. 04, 1993 USD 476,500 Investment holding company
2nd Floor, Panama, Republic of Panama
Everport Terminal Services 1209 Orange Street in the City of Wilmington,
Apr. 29, 2011 USD 105.9 Terminal services
Inc. County of New Castle.
Evergreen Marine (Hong 22-23/F., Harcourt House, 39 Gloucester Road,
Oct. 31, 1991 HKD 8,000 Container shipping
Kong) Ltd. Wanchai, Hong Kong.
Taiwan Terminal Services No. 6, Qijin 1st Rd., Qijin Dist., Kaohsiung City
Dec. 27, 1997 NTD 100,000 Cargo loading and discharging
Corp. Ltd. 805, Taiwan (R.O.C.)
Craigmuir Chambers, P. O. Box71, Road Town,
Clove Holding Ltd. Nov. 16, 2000 USD 10 Investment holding company
Tortola, B. V. I.
23864 Hawthorne Blvd., Suite 201, Torrance, CA
Whitney Equipment LLC. Mar. 15, 2005 USD 200 Equipment Leasing Company
90505
Oct. 02, 1986 Amsinckstrasse 55 , 20097 Hamburg, Germany EUR 61 Shipping agency
(Europe) GmbH
Evergreen Shipping Agency 12F, 19, SAEMUNAN-RO 5-GIL, JONGNO-GU,
Jan. 01, 2001 KRW 606,000 Shipping agency
(Korea) Corporation SEOUL, REPUBLIC OF KOREA
2nd Floor, Humboldt Tower, East 53rd Street, Urb.
Greencompass Marine S.A. Aug. 16, 1993 USD 353,500 Container shipping
Marbella, Panama City, Rep. of Panama
Evergreen Shipping (Spain) Calle Siete Aguas, 11-entlo.,Valencia 46023
Jan. 01, 2007 EUR 600 Shipping agency
S.L. Spain
Evergreen Shipping Agency LEVEL 11, 77 PACIFIC HIGHWAY , NORTH
May. 27, 2002 AUD 1 Shipping agency
(Australia) Pty. Ltd. SYDNEY , NEW SOUTH WALES 2060
Evergreen Shipping Agency FL 30, Pearl Plaza, 561A Dien Bien Phu Str.,
Jan. 01, 2003 USD 1,120 Shipping agency
(Vietnam) Corp. Ward 25, Binh Thanh Dist., HCMC, Vietnam
2018 Annual Report
445
446
Date
Founded
NO.7, JALAN JURUTERA U1/23, SECTION U1,
Evergreen Marine Crop. HICOM GLENMARIE INDUSTRIAL PARK, 40150
Jun. 24, 2000 MYR 500 Shipping agency

(Malaysia) SDN. BHD. SHAH ALAM, SELANGOR DARUL EHSAN,
MALAYSIA.
Marathon Nextgen Innova 'A' G-01, Opp.
Jan. 19, 2004 Peninsula Corporate Park, Off G. K. Marg, Lower INR 1,000 Shipping agency
(India) Pvt. Ltd.
Parel (W) , Mumbai - 400013, India
PT. Multi Bina Pura Jl. Raya Cakung Cilincing, KM. 4 Jakarta Utara Cargo loading and discharging,
Sep. 10, 1992 RP 39,760,500
International 14260, Indonesia inland transportation
Jl. Raya Cakung Cilincing, KM. 4 Jakarta Utara Repairs and cleaning of
PT. Multi Bina Transport Jan. 01, 1994 RP 10,350,000
14260, Indonesia containers, inland transportation
PJE. CARABELAS 344 (ZIP CODE:C1009AAD)
Evergreen Argentina S.A. Oct. 31, 1997 ARS 1,580 Leasing
BUENOS AIRES, ARGENTINA.
Evergreen Shipping Agency 3656/81, 24-25th Floor, Green Tower, Rama 4
Feb. 14, 2001 THB 40,000 Shipping agency
(Thailand) Co., Ltd. Road, Klongton, Klongtoey, Bangkok 10110
Lot 139, Jalan Cecair, Phase 2, Free Trade Zone,
Jun. 06, 1989 Johor Port Authority, 81700 Pasir Gudang, Johor, MYR 49,879 Container manufacturing
Corp (Malaysia) Berhad
Malaysia
Armand Investment
Dec. 29, 2000 Van Engelenweg 23, Curacao USD 6 Investment holding company
(Netherlands) N.V.
Wa a l h a v e n Z . z . 1 9 , P o r t c i t y I I , 3 0 8 9 J H
Armand Estate B.V. Apr. 18, 2000 EUR 20.42 Investment holding company
Rotterdam
Evergreen Agency (South 9B Riley Road, Bedfordview, Johannesburg
Apr. 01, 2009 ZAR 10,000 Shipping agency
Africa) (Pty) Ltd. 2007, South Africa
Nov. 09, 2005 Scali Cerere 9 - 57122 Livorno, Italy EUR 2,000 Shipping agency
(Italy) S.p.A.
Date
Founded
Business Centre Atrium, 3rd floor, office 316-
sep. 01, 2005 B No. 1/25 litera A, Kazanskaya Street Saint- RUB 6,000 Shipping agency
(Russia) Ltd.
Petersburg, 191186 Russia
Evergreen Marine (UK) Limited Apr. 30, 2001 160 Euston Road, London NW1 2DX,U.K. GBP 1,500 Container shipping
NO.295, JI YUN EAST ROAD, TIANJIN PORT Loading, discharging, storage,
Kingtrans Intl. Logistics
Nov. 23, 2006 CONTAINER LOGISTICS CENTER,BINHAI NEW USD 10,000,000 repairs and cleaning of
(Tianjin) Co., Ltd.
DISTRICT, TIANJIN, CHINA containers
Ever Shine (Shanghai) 2th FL, No. 2, Lane 1199, Minsheng RD.,
Enterprise Management May. 22, 2007 Pudong New Area, Shanghai, China ZIP code : USD 58,850
self-owned property leasing
Consulting Co., Ltd. 200135
32-6F, Global Shipping Plaza, No.269, Ningdong Management consultancy,
Management Consulting Apr. 05, 2016 RMB 43,000
Road,Yinzhou District of Ningbo City self-owned property leasing
Co.,Ltd.
Ever Shine (Shenzhen)
16F, Golden Ccentury Building, NO.6033 Management consultancy,
Enterprise Management Mar. 27, 2008 USD 8,800
Shennan Road, Futian District, Shenzhen self-owned property leasing
Consulting Co., Ltd.
Ever Shine (Qingdao)
Enterprise Management May. 15, 2008 NO.31 Donghai West Road, Qingdao, China USD 7,300
self-owned property leasing
#292CD E2,street. Mao Tse Young (245) corner
Oct. 18, 2017 street. 205, Sangkat Tumnub Teuk, Khan KHR 800,000 Shipping agency
(Cambodia) Co., Ltd.
Chamkarmorn, Phnom Penh, Cambodia.
May. 18, 2018 Calle 97 AN° 9A - 50 Piso 4to, Bogota, Colombia COP 80,001 Shipping agency
(Colombia) S.A.S.
Evergreen Shipping Agency AV Javier Prado Este No. 480-488-492, Oficina
Aug. 23, 2018 PEN 1,500 Shipping agency
(Peru) S.A.C. 502 San Isidro, Lima, Peru Lima 27
2018 Annual Report
447
448
Date
Founded
AV. B E N J A M I N F R A N K L I N , 2 0 4 , P I S O 1 ,
May. 21, 2018 E S C A N D O N , M I G U E L H I D A L G O , 1 1 8 0 0 , MXN 7,400 Shipping agency
Mexico, S.A. De C.V.

CIUDAD DE MEXICO, MEXICO
Evergreen Shipping Agency Alcántara 200, of 501, Las Condes, Santiago,
Oct. 01, 2018 CLP 350,000 Shipping agency
(Chile) SPA. Chile
Master International Shipping 16F, Golden Century Building, NO.6033 Shennan
Jan. 31, 2005 RMB 5,000 Shipping agency
Agency Co., Ltd. Road, Futian District, Shenzhen
Note : The foreign exchange rates

USD : TWD=1: 30.7535 1:30.1710 IDR : TWD=1: 0.0021 1:0.0021 RMB : TWD=1: 4.4789 1:4.5545
MYR : TWD=1: 7.3953 1:7.4694 GBP : TWD=1: 38.9039 1:40.1851 EUR : TWD=1: 35.2112 1:35.6294
KRW : TWD=1: 0.0275 1:0.0274 INR : TWD=1: 0.4384 1:0.4406 ARS : TWD=1: 0.8028 1:1.0688
AUD : TWD=1: 21.6528 1:22.5056 RUB : TWD=1: 0.4410 1:0.4795 SGD : TWD=1: 22.4380 1:22.3472
THB : TWD=1: 0.9474 1:0.9328 VND : TWD=1: 0.0013 1:0.0013 ZAR : TWD=1: 2.1213 1:2.2711
PLN : TWD=1: 8.1974 1:8.3394 CHF : TWD=1: 31.1870 1:30.8025 PEN : TWD=1: 9.1273 1:9.0203
COP : TWD=1: 0.0094 1:0.0096 MXN : TWD=1: 1.5615 1:1.4949 CLP : TWD=1: 0.0441 1:0.0444
HKD : TWD=1: 3.9255 1:3.8493
2018 Annual Report
(3) The EMC’s shareholders representing both the holding company and
subordinates: None.
(4) The affiliates scope of labor and division of labor.
Among the overall affiliated companies are mostly in transportation service industry.
These affiliated companies aims at increasing overall revenue through working in the
worldwide transportation network. The companies operates supporting services to
maximize performance and provide global customers with the best service.
(5) The Directors, Supervisors and President of Subsidiaries (As of DEC. 31,
2018)
Expressed in local currency
Country Company Director President and Supervisor Capital
Ko, Lee-Ching CEO & President: Ko, Lee-Ching

Whitney Equipment
Wu, Kuang-Hui Secretary: Wu, Kuang-Hui USD 200,000
LLC.
Kuo, Feng-Yi Treasurer: Kuo, Feng-Yi
United States
Wang, Jiing-Huei Chairman: Wang, Jiing-Huei
Everport Terminal
Lee, Mong-Jye President: George Lang USD 105,900
Services Inc.
Chang, Cheng-Yung Secretary: Chang, Cheng-Yung
Managing Director:
Armand Investment Chang, Kuo-Cheng
Curacao Chang, Kuo-Cheng USD 6,000
(Netherlands) N.V. C.T.M. Corporation N.V.
C.T.M. Corporation N.V.
British Virgin Chang, Kuo-Cheng

Clove Holding Ltd. USD 10,000
Islands Chang, Cheng-Yung
Chen, Kong-Ling
Chairman: Chen, Kong-Ling
Chang, Cheng-Yung
Kingtrans Intl. Logistics Vice Chairman: Yu,Ming-Jiang
Lian, Chung-Te USD 10,000,000
(Tianjin) Co., Ltd . President: Chen, Ching-Wen
Chang, Da-Chih
Treasurer: Lin, Yuan-Cheng
Yu,Ming-Jiang
Ever Shine
China Chang, Cheng-Yung Chairman: Chang, Cheng-Yung
(Ningbo) Enterprise
Lee, Mong-Jye President: Lee, Mong-Jye RMB 43,000,000
Management
Kou, Jin-Cheng Treasurer: Ko, Lee-Ching
Ever Shine (Shanghai) Chang, Cheng-Yung Chairman: Chang, Cheng-Yung

Enterprise Management Lee, Mong-Jye President: Lee, Mong-Jye USD 58,850,000
Consulting Co., Ltd. Kou, Jin-Cheng Treasurer: Ko, Lee-Ching
449
Ever Shine (Shenzhen) Chang, Cheng-Yung Chairman: Chang, Cheng-Yung

Enterprise Management Lee, Mong-Jye President: Lee, Mong-Jye USD 8,800,000
Consulting Co., Ltd. Kou, Jin-Cheng Treasurer: Ko, Lee-Ching
Ever Shine
Chang, Cheng-Yung Chairman: Chang, Cheng-Yung
(Qingdao) Enterprise
Lee, Mong-Jye President: Lee, Mong-Jye USD 7,300,000
Management
Kou, Jin-Cheng Treasurer: Ko, Lee-Ching
Lo, Yu-Lin
Chairman: Lin, Yuan-Cheng
Master International Chao, Chien-Hsin
Vice Chairman & President:
Shipping Agency Co., Lin, Yuan-Cheng RMB 5,000,000
Huang, Jian
Ltd. Huang, Jian
Treasurer: Wu, Kuang-Hui
Chen, Honghui
Chang, Kuo-Hua
Netherlands Armand Estate B.V. EUR 20,420.11
Huang, Sheng-Peng
President Director:
Chang, Cheng-Yung Chang, Cheng-Yung
Lee, Mong-Jye Managing Director:
PT. Multi Bina Pura
Wu, Mao-Lin Wu, Mao-Lin USD 6,000,000
International
Chan, Cheng-Chi Commissioner:
M. F. Permadi Wu, Kuang-Hui
Indonesia Gunadi Widjaja
Chang, Cheng-Yung
President Director:
Lee, Mong-Jye
PT. Multi Bina Chang, Cheng-Yung
Wu, Mao-Lin IDR 10,350,000,000
Transport Commissioner:
Chan, Cheng-Chi
Gunadi Widjaya
M. F. Permadi
Chang, Kuo-Cheng
Chang, Cheng-Yung
(Alternate Director:
Evergreen Heavy
Wu, Kuang-Hui)
Industrial Corp. Secretary: Yong May Li MYR 49,878,735
Wang, Kuo-Chin
(Malaysia) Berhad
Lee Ting-Ming
Malaysia
Dato' Dr. Kenny Ong Kean
Lee
Evergreen Marine Chang, Kuo-Cheng

Corp. (Malaysia) SDN. Yen, Chia-Cheng Secretary: Wong Mei Ling M$500,000
BHD. Lin, Hung-Yu
450
2018 Annual Report
Chang, Kuo-Hua President: Chang, Kuo-Hua

Peony Investment S.A. Chang, Cheng-Yung Secretary: Chang, Cheng-Yung USD 476,500,000
Wu, Kuang-Hui Treasurer: Wu, Kuang-Hui
Panama
Chang, Cheng-Yung President: Chang, Cheng-Yung
Greencompass Marine
Lee, Mong-Jye Secretary: Lee, Mong-Jye USD 353,500,000
S.A.
Ko, Lee-Ching Treasurer: Ko, Lee-Ching
Honorary Chairman:
Chang, Kuo-Cheng Maurice Storey
United Evergreen Marine (UK)
Chang, Da-Chih Chairman: Chang, Da-Chih GBP 1,500,000
Kingdom Limited
Maurice Storey President & Secretary:
Chang, Da-Chih
Evergreen Shipping
Chang, Cheng-Yung
Germany Agency (Europe) Managing Director: Wei, Wei-der EUR 61,335.03
Lee, Mong-Jye
GmbH
Chairman: Wu, Yaw-Hwang

Evergreen Shipping Chang, Cheng-Yung
President: Wu, Yaw-Hwang
South Korea Agency (Korea) Lee, Mong-Jye KRW 606,000,000
Statutory Auditor:
Corporation Wu, Yaw-Hwang
Wu, Kuang-Hui
Chang, Cheng-Yung
Evergreen Shipping
India Chuang, Chao-Wei President: Chuang, Chao-Wei INR 1,000,000
Agency (India) Pvt. Ltd.
Lin, Hsin-Tsung
Cheng, Ming-Feng
Evergreen Argentina
Argentina Alternate Director: Chairman: Cheng, Ming-Feng ARS 1,580,000
S.A.
Alberto Servidio
Chang, Cheng-Yung
Evergreen Shipping
Spain Lee, Mong-Jye President: Ko, Ching-Lin EUR 600,000
(Spain) S.L.
Ko, Ching-Lin
Chairman: Pier Luigi Maneschi

President: Cheng, Chi-Yi
Internal Statutroy Board:
Chang, Cheng-Yung Mr. Massimo Quartarone
Lee, Mong-Jye (Chairman)
Evergreen Shipping
Italy Cheng, Chi-Yi Mr. Vinicio Ferracci (Auditor) EUR 2,000,000
Agency (Italy) S.p.A.
Pier Luigi Maneschi Mr. Paolo Torracca (Auditor)
Antonio Maneschi Mr. Luca Paoletti (Alternate
Auditor)
Mr. Lorenzo Mamone (Alternate
Auditor)
451
Evergreen Shipping
Chang, Cheng-Yung Chairman: Chang, Cheng-Yung
Australia Agency (Australia) Pty. AUD 1,000
Hung, Tsu-Li President: Hung, Tsu-Li
Ltd.
Chang, Cheng-Yung
Lee, Mong-Jye
Evergreen Shipping Jen, Yi-Kang
Russia President: Jen, Yi-Kang RUB 6,000,000
Agency (Russia) Ltd. Komarov Alexander
Ivanovitch
Laitinen Jouni Olli-Pekka

Thailand Agency (Thailand) Co., Tsai, Wen-Jung THB 40,000,000
Ltd. Mr. Nivat Changariyavong
Chang, Cheng-Yung
Lee, Mong-Jye
Tsai, Ming-Feng
Evergreen Agency
South Africa Hsieh, Huey-Chuan ZAR 10,000,000
(South Africa) (Pty) Ltd.
Chen, Chih-yi
Chen, Lee-chun
Moegamat Zain Davids
Chang, Yen-I
Taiwan Terminal President: Wu, Shann-Jen
Taiwan Wu, Shann-Jen TWD 100,000,000
Services Corp. Ltd. Supervisor: Wu, Kuang-Hui
Chen Yih-Jong

Chairman: Chang, Cheng-Yung
Vietnam Agency (Vietnam) Lee, Mong-Jye USD 1,120,000
President: Lin, Chien-Nan
Corp. Lin, Chien-Nan
Chang, Kuo-Hua
Chang, Kuo-Cheng
Evergreen Marine
Hong Kong Chen, Kong-Ling secretary: Chen, Kong-Ling HKD 8,000,000
(Hong Kong) Ltd.
Lo, Yu-Lin
Lin, Yuan-Cheng
Chang, Cheng-Yung
Yang, Chin-Chung)
Evergreen Shipping Lee, Mong-Jye General Manager:
Chile CLP 350,000,000
Agency (Chile) SPA. (Alternate Director: Yang, Chin-Chung
Wu, Chung-En)
Gabriel García Huidobro
Morandé
452
2018 Annual Report
CAPITAL-
Evergreen Shipping
General Manager: COP 80,001,000
Colombia Services (Colombia)
Huang, Pao-Jen PREMIUM-
S.A.S.
COP 999,999,000
Chang, Cheng-Yung
Yang, Lii-Yueh)
Evergreen Shipping
Lee, Mong-Jye
Mexico Agency Mexico, S.A. General Manager: Yang, Lii-Yueh MXN Peso 7,400,000
De C.V.
Wang, Wen-Tai)
Jesus Cutberto Parra
Mendoza
Chang, Cheng-Yung
Lin, Ching-Yi)
Evergreen Shipping
Peru Lee, Mong-Jye General Manager: Lin, Ching-Yi Peru Soles 1,500,000
Agency (Peru) S.A.C
Shih,Cheng-Chuan)
Moises Jose Woll Aste

Cambodia Services (Cambodia) Lee, Mong-Jye Chairman: Chang, Cheng-Yung KHR 800,000,000
Co., Ltd. Wang, I-Cheng
453
454
(6) The Operating Overviews of Subsidiaries (As of DEC. 31, 2018)
Unit: NT$ thousands
As of Dec. 31, 2018
Basic
Operating Net
Total Total Total Operating Earning

Company Capital Income Income
Assets Liabilities Equity Revenue (Loss) Per
(Loss) (Loss)
Share (NT$)
Peony Investment S. A. 14,654,043 28,901,137 8,211 28,892,926 (1,770,789) (1,879,783) (1,888,994) (396)
Everport Terminal Services Inc. 3,257 5,077,455 3,809,014 1,268,441 13,381,484 900,244 553,979 523,115
31,404 25,110,508 20,386,889 4,723,619 10,720,384 1,352,095 979,323 122
Ltd.
Taiwan Terminal Services Corp.
100,000 352,807 255,923 96,883 865,482 27,328 27,476 3
Ltd.
Clove Holding Ltd. 308 3,374,231 621,262 2,752,969 51,005 49,443 42,847 4,285
Whitney Equipment LLC. 6,151 784,891 591,949 192,943 224,864 55,624 23,716 0
2,160 2,323,374 2,024,215 299,158 1,301,876 23,685 17,957 0
(Europe) GmbH
16,643 354,922 306,065 48,857 150,680 16,809 12,772 105
(Korea) Corporation
Greencompass Marine S.A. 10,871,362 54,660,436 38,858,665 15,801,771 77,388,011 (1,790,138) (1,334,891) (378)
Evergreen Shipping (Spain) S.L. 21,127 555,365 318,985 236,380 586,966 199,822 151,681 25,280
22 333,040 208,233 124,808 263,375 147,477 125,187 125,187
(Australia) Pty. Ltd.
34,444 428,510 261,106 167,404 310,334 168,250 138,967 0
(Vietnam) Corp.
Evergreen Marine Corp.
3,698 1,144,226 551,265 592,961 609,117 304,989 250,142 500
(Malaysia) SDN. BHD.
Basic
Operating Net
(Loss) (Loss)
Share (NT$)
438 439,619 297,050 142,569 178,738 62,665 45,819 458
(India) Pvt. Ltd.
PT. Multi Bina Pura International 83,497 592,227 63,129 529,099 262,081 134,829 114,147 6,386
PT. Multi Bina Transport 21,887 110,630 28,696 81,934 93,386 3,782 5,914 571
Evergreen Argentina S.A. 1,268 11,229 10,208 1,020 4,229 (287) (7,407) (47)
37,897 685,949 562,147 123,802 294,665 96,607 78,830 99
(Thailand) Co., Ltd.
368,870 1,452,291 265,079 1,187,212 2,346,084 7,799 53,652 1
(Malaysia) Berhad
Armand Investment (Netherlands)
185 466,297 3,919 462,378 20,915 20,198 20,198 3,366
N.V.
Armand Estate B.V. 719 475,046 8,787 466,259 22,811 20,915 20,915 464,768
Evergreen Agency (South Africa)
21,213 383,276 200,822 182,454 343,505 161,163 127,945 13
(Pty) Ltd.
70,422 308,675 141,759 166,916 357,949 100,558 70,370 70,370
S.p.A.
2,646 74,456 37,188 37,268 136,570 86,423 73,185 0
(Russia) Ltd.
Evergreen Marine (UK) Limited 58,356 46,368,001 43,369,180 2,998,821 50,304,493 (1,980,417) (1,333,238) (889)
Kingtrans International Logistics
307,535 528,743 88,009 440,734 174,529 43,018 28,027 0
(Tianjin) Co., Ltd.
2018 Annual Report
455
456
Basic
Operating Net
(Loss) (Loss)
Share (NT$)
Ever Shine (Shanghai) Enterprise

Management Consulting Co., 1,809,843 1,846,106 39,597 1,806,508 159,938 22,926 22,555 0
Ltd.
Management Consulting Co., 192,593 256,333 63,704 192,630 14,185 2,267 (1,239) 0
Ltd.
Management Consulting Co., 270,631 348,026 79,573 268,453 25,574 6,961 2,813 0
Ltd.
Ever Shine (Qingdao) Enterprise
Management Consulting Co., 224,501 272,742 54,412 218,330 18,348 4,454 1,778 0
Ltd.
Evergreen Shipping Service
6,122 32,733 20,358 12,376 64,191 17,526 6,107 20
(Cambodia) Co., Ltd.
750 15,545 16,119 (574) 0 (10,546) (10,981) (137)
(Colombia) S.A.S.
Evergreen Shipping Agency (Peru)
13,691 120,914 81,631 39,283 49,086 35,948 25,292 17
S.A.C.
11,555 233,625 215,992 17,633 118,999 10,895 5,819 79
(Mexico) S.A. De. C.V.
15,438 211,449 182,954 28,496 48,653 17,988 13,135 5,254
(Chile) SPA.
22,395 764,401 682,709 81,691 12,259,752 66,493 48,085 0
Agency Co., Ltd.
Financial Position Income Financial Position Income Financial Position Income
USD : TWD=1: 30.7535 1:30.1710 IDR : TWD=1: 0.0021 1:0.0021 RMB : TWD=1: 4.4789 1:4.5545
MYR : TWD=1: 7.3953 1:7.4694 GBP : TWD=1: 38.9039 1:40.1851 EUR : TWD=1: 35.2112 1:35.6294
KRW : TWD=1: 0.0275 1:0.0274 INR : TWD=1: 0.4384 1:0.4406 ARS : TWD=1: 0.8028 1:1.0688
AUD : TWD=1: 21.6528 1:22.5056 RUB : TWD=1: 0.4410 1:0.4795 SGD : TWD=1: 22.4380 1:22.3472
THB : TWD=1: 0.9474 1:0.9328 VND : TWD=1: 0.0013 1:0.0013 ZAR : TWD=1: 2.1213 1:2.2711
PLN : TWD=1: 8.1974 1:8.3394 CHF : TWD=1: 31.1870 1:30.8025 PEN : TWD=1: 9.1273 1:9.0203
COP : TWD=1: 0.0094 1:0.0096 MXN : TWD=1: 1.5615 1:1.4949 CLP : TWD=1: 0.0441 1:0.0444
HKD : TWD=1: 3.9255 1:3.8493
2018 Annual Report
457
2. Consolidated Financial Statement of Subsidiaries
REPRESENTATION LETTER
In connection with the Consolidated Financial Statements of Affiliated Enterprises

of EVERGREEN MARINE CORPORATION (TAIWAN) LTD. (the “Consolidated FS
of the Affiliates”), we represent to you that, the entities required to be included in the
Consolidated FS of the Affiliates as of and for the year ended December 31, 2018 in
accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated
Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are
the same as those required to be included in the Consolidated Financial Statements of
EVERGREEN MARINE CORPORATION (TAIWAN) LTD. and its subsidiaries (the
“Consolidated FS of the Group”) in accordance with International Financial Reporting
Standard 10, as well as that, the information required to be disclosed in the Consolidated
FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently,
EVERGREEN MARINE CORPORATION (TAIWAN) LTD. does not prepare a separate
set of Consolidated FS of Affiliates.
Very truly yours,

By
CHENG-YUNG CHANG, Chairman

March 22, 2019
458
2018 Annual Report
3. Affiliated Companies Report: None.
II. Securities issuance through private placement: None.
III. Holdings and sale of shares by subsidiaries: None.
IV. Other necessary supplementary information: None.
V. Any events in 2018 and as of the date of this annual report had
significant impacts on shareholders’ right or security prices as
stated in item 3 paragraph 2 of Article 36: None.
459

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OFFICE

ADDRESS: No.166, Sec. 2, Minsheng East Road, Taipei, Taiwan

I. 2018 Business Report

in economic growth rates, such as 2.9% in the United States, 1.8%

and consequently decreased world trade. Due to overcapacity, market

2. Company Operational Strategy

3. Annual Accounts & Profitability Analysis

4. Research & Development

(2) Maritime Training

regulators, and customs and port authorities. Evergreen is the first

 LOG-NET E-Commerce Excellence Award for 2017

II. 2019 Business Plan

3. External competitive environment, regulatory environment and overall

services and westbound regular full container services and

■ Issuance of Global Depository Receipts of a total value of

US$115 million on the London Stock Exchange.

■ Evergreen Container Terminal NO 5, Berths 79, 80 and 81

in Kaohsiung Port becomes fully operational and Taiwan’s

■ Evergreen Shipping Agency (Korea) Corporation founded.

■ Evergreen Marine Corp. (Malaysia) Sdn. Bhd. founded.

■ Evergreen Shipping Agency (Netherlands) B.V. founded.

■ Evergreen Shipping Agency (Thailand) Co., Ltd. founded.

■ Taranto Container Terminal in the south of Italy, with Evergreen Group

as one of the investors, opened for business with a comprehensive

quality systems, marine simulator equipment, and training centers by

with Tesco Taiwan for investment and construction of the Tesco

■ Evergreen Shipping Agency (Vietnam) Corporation founded.

■ The Evergreen Seafarer Training Center is awarded an Occupational

Training Institution certificate by the Council of Labor Affairs of the

■ Evergreen Group orders ten S-series container vessels from Mitsubishi

Heavy Industries Ltd.

■ Inauguration of a new state-of-the-art Pierce County Container

Terminal at the Port of Tacoma, invested in by Evergreen Group.

■ Evergreen Group ordered twenty L-series container vessels from

Samsung Heavy Industries.

■ Launching of West Coast of Central America (WCA) service with

■ Launching of South China–Philippines–East Malaysia (CPM) service.

■ Launching of China–Pacific South West (CPS2) service.

■ Launching of China–Australia–Taiwan (CAT) service.

■ Launching of New Ho Chi Minh (NHS) service.

■ Evergreen Line signs agreements with Costamare and Shoei Kisen

establish the CKYHE Alliance.

selected as “Ship of the Year” by the Taiwan Society Naval Architects

Kaisha in January to charter eleven 20,000 TEU vessels, including six

service (TSS) in March and introduces a dedicated Taiwan – Hong

to build ten 2,800 TEU B-type vessels.

Imabari in September for another ten 2,800 TEU B-type vessels.

construction of its Berth No. 4 in December. The facility can

CGM, COSCO Container Lines and OOCL to form the OCEAN

Corporation concludes a cooperation agreement with National

member), Evergreen Line has added new functions to its on-line

Israel service, providing direct and rapid service to customers.

new joint North East Asia – Australia Express.

the local shipping industry, Evergreen steams up with National Taiwan

third consecutive year.

com to offer guaranteed and more convenient sea freight services by

networks covering Asia-Europe/Mediterranean, Trans-Pacific, Asia-North America East

Marine (Hong Kong) Ltd.