Far Eastern New Century Corporation and Subsidiaries Consolidated Financial Statements for the Nine Months Ended September 30, 2019 and 2018 and Independent Auditors’ Review Report WorldReginfo - c31e5d25-f6a1-499d-b52e-e9a42e6c2905 INDEPENDENT AUDITORS’ REVIEW REPORT The Board of Directors and Shareholders Far Eastern New Century Corporation Introduction We have reviewed the accompanying consolidated balance sheets of Far Eastern New Century Corporation and its subsidiaries (collectively, the “Group”) as of September 30, 2019 and 2018, the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the nine months ended, and related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as 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 International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Basis for Qualified Conclusion As disclosed in Note 1 and Note 13 to the consolidated financial statements, the financial statements of some non-significant subsidiaries and joint operations included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of September 30, 2019 and 2018, combined total assets of these non-significant subsidiaries were NT$266,925,818 thousand and NT$254,125,497 thousand, respectively, representing 48.26% and 46.52%, respectively, of the consolidated total assets, and combined total liabilities of these non-significant subsidiaries were NT$112,987,416 thousand NT$119,828,568 thousand, respectively, representing 39.49% and 42.66%, respectively, of the consolidated total liabilities; for the three months and nine months ended September 30, 2019 and 2018, the combined comprehensive income of these non-significant subsidiaries were NT$(51,350) thousand, NT$1,033,113 thousand, NT$3,082,577 thousand and NT$5,532,539 thousand, respectively, representing (2.11%), 23.79%, 23.60% and 32.77%, respectively, of the consolidated total comprehensive income. In addition, as stated in Note 14 to the consolidated financial statements, the investments accounted for using equity-method as of September 30, 2019 and 2018, with carrying values of NT$41,588,225 thousand and NT$37,754,969 thousand, respectively, and the related shares of the comprehensive - 1 - WorldReginfo - c31e5d25-f6a1-499d-b52e-e9a42e6c2905 income of these investees amounting to NT$1,366,495 thousand, NT$1,084,186 thousand, NT$3,288,391 thousand and NT$2,984,056 thousand, for the three months and nine months ended September 30, 2019 and 2018, respectively. These amounts referring to the investments accounted for using equity-method were based on unreviewed financial statements of associates. Related information on subsidiaries, joint operations, and associates stated above and investments shown in Note 39 to the consolidated financial statements was also unreviewed. Qualified Conclusion Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries, joint operations, and associates as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2019 and 2018, and its consolidated financial performance for the three months ended September 30, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2019 and 2018 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The engagement partners on the reviews resulting in this independent auditors’ review report are Ching-Pin Shih and Cheng-Hung Kuo. Deloitte & Touche Taipei, Taiwan Republic of China November 9, 2018 Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail. - 2 - WorldReginfo - c31e5d25-f6a1-499d-b52e-e9a42e6c2905 FAR EASTERN NEW CENTURY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) September 30, 2019 December 31, 2018 September 30, 2018 (Reviewed) (Audited) (Reviewed) ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents (Notes 6 and 34) $ 16,282,864 3 $ 35,342,560 6 $ 30,498,233 6 Financial assets at fair value through profit or loss - current (Notes 7, 34 and 35) 4,808,136 1 6,075,604 1 6,240,855 1 Financial assets at fair value through other comprehensive income - current (Note 8) 80,819 - 75,346 - 82,004 - Financial assets at amortized cost - current (Notes 9 and 34) 1,552,611 - 2,090,355 - 2,473,795 - Financial assets for hedging - current (Notes 33 and 34) - - 1,868 - 3,050 - Contact assets - current (Note 26) 5,745,222 1 5,828,641 1 5,594,611 1 Notes and accounts receivable, net (Notes 11, 26 and 34) 28,945,202 5 29,347,392 5 31,269,105 6 Other receivables (Note 34) 2,386,089 - 2,507,639 1 3,805,134 1 Current tax assets (Note 4) 51,005 - 25,338 - 96,276 - Inventories (Notes 12 and 35) 28,368,466 5 34,072,652 6 32,515,034 6 Prepayments 5,318,611 1 5,082,995 1 6,271,714 1 Other financial assets - current (Notes 34 and 35) 3,520,741 1 5,746,927 1 3,108,300 1 Refundable deposits - current 66,046 - 65,377 - 22,431 - Other current assets 3,312,277 1 2,926,177 1 2,388,553 - Total current assets 100,438,089 18 129,188,871 23 124,369,095 23 NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 8) 2,036,528 - 2,014,802 - 1,486,422 - Financial assets at amortized cost - non-current (Notes 9, 10 and 34) 500,000 - 431,290 - - - Financial assets for hedging - non-current (Notes 33 and 34) - - 65,356 - 124,025 - Investments accounted for using the equity method (Notes 14 and 35) 68,232,827 12 66,378,437 12 66,963,852 12 Contract assets - non-current (Note 26) 2,183,379 1 1,535,757 - 1,478,248 - Property, plant and equipment (Notes 4, 15 and 35) 162,268,005 29 164,557,019 29 149,873,416 28 Right-of-use assets (Notes 4, 16 and 34) 18,760,850 3 - - - - Investment properties (Notes 17 and 35) 126,613,069 23 124,816,527 22 124,759,357 23 Concessions (Notes 19 and 35) 38,835,174 7 41,136,801 7 41,977,676 8 Goodwill (Notes 4 and 18) 12,777,428 2 11,862,742 2 11,865,515 2 Other intangible assets (Note 19) 5,020,307 1 4,997,476 1 4,211,296 1 Deferred tax assets (Note 4) 3,149,539 1 3,318,140 1 2,613,682 1 Prepayments for equipment (Note 15) 2,979,435 1 1,406,581 - 2,007,360 - Refundable deposits - non-current 1,440,343 - 1,130,010 - 1,075,368 - Long-term other receivables (Note 34) 555,682 - 524,861 - 1,337,927 - Incremental costs of obtaining a contract - non-current (Note 26) 3,200,141 1 1,802,163 1 1,542,478 - Other financial assets - non-current (Note 35) 2,494,752 1 2,718,063 1 2,856,602 1 Long-term prepayments for lease - - 7,247,623 1 7,244,574 1 Other non-current assets 1,634,639 - 456,901 - 430,378 - Total non-current assets 452,682,098 82 436,400,549 77 421,848,176 77 TOTAL $ 553,120,187 100 $ 565,589,420 100 $ 546,217,271 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 20 and 34) $ 38,497,068 7 $ 47,833,445 8 $ 37,919,433 7 Short-term bills payable (Note 20) 7,246,770 1 6,717,712 1 4,863,072 1 Financial