Stock Code:1532

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

with Independent Auditors’ Review Report For the Six Months Ended June 30, 2022 and 2021

Address: 4F, NO.85, SEC.4, REN' AI RD, TAIPEI, TAIWAN, R.O.C. Telephone: 886-2-2711-2831

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Information on major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8～9 9～12 12 12～46 46～52 53 53～56 56 56 56～57 58～61 62～63 63～64 64 65

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

Page

1
2
3
4
5
6
7
8
8
8～9
9～12
12
12～46
46～52
53
53～56
56
56
56～57
58～61
62～63
63～64
64
65

==> picture [76 x 31] intentionally omitted <==

==> picture [169 x 19] intentionally omitted <==

KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web home.kpmg/tw

Independent Auditors’ Review Report

To the Board of Directors of China Metal Products Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of China Metal Products Co., Ltd. (the “Company”) and its subsidiaries (the “ Group”) as of June 30, 2022 and 2021, and the related consolidated statements of comprehensive income, for the three months and six months ended June 30, 2022 and 2021, and the changes in equity and cash flows for the six months ended June 30, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $3,028,492 thousand and $5,095,029 thousand, constituting 6.19% and 10.45% of the consolidated total assets; and the total liabilities amounting to $1,548,293 thousand and $4,199,026 thousand, constituting 4.76% and 12.65% of the consolidated total liabilities as of June 30, 2022 and 2021, respectively, as well as the total comprehensive income (loss) amounting to $40,906 thousand, $(13,550) thousand, $95,308 thousand and $(22,546) thousand, constituting (31.66)%, (49.33)%, 13.64% and (15.02)% of the consolidated total comprehensive income (loss) for the three months and six months ended June 30, 2022 and 2021, respectively.

Furthermore, as stated in Note 6(e), the other equity accounted investments of the Group in its investee companies of $793,212 thousand and $696,554 thousand as of June 30, 2022 and 2021, respectively, and its equity in net earnings on these investee companies of $(25,350) thousand, $(38,964) thousand, $(34,613) thousand and $(61,419) thousand for the three months and six months ended June 30, 2022 and 2021, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2022 and 2021, and of its consolidated financial performance for the three months and six months ended June 30, 2022 and 2021, and its consolidated cash flows for the six months ended June 30, 2022 and 2021 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 Shih-Chin Chih and Kuo-Yang Tseng.

KPMG

Taipei, Taiwan (Republic of China) August 11, 2022

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of June 30, 2022 and 2021

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2022, December 31, 2021, and June 30, 2021 (Expressed in Thousands of New Taiwan Dollars)

June 30, 2022 Assets Amount % Current assets: 1100 Cash and cash equivalents (Notes 6(a) and (aa)) $ 4,071,574 8 1170 Notes and accounts receivable, net (Notes 6(c), (x) and (aa)) 3,570,821 7 1180 Accounts receivable due from related parties, net (Notes 6(aa) and 7) 5,123 - 1200 Other receivables (Note 6(aa)) 70,139 - 1210 Other receivables due from related parties (Notes 6(aa) and 7) 9,806 - 130X Inventories (Notes 6(d), 8 and 9(a)) 20,719,420 42 1410 Prepayments (Note 9(a)) 266,372 1 1476 Other current financial assets (Notes 6(aa), 8 and 9(a)) 1,325,214 3 1479 Other current assets, others 328,421 1 1480 Incremental costs of obtaining contracts 378,382 1 Total current assets 30,745,272 63 Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (Notes 6(b) and (aa)) 152,342 - 1550 Investments accounted for using equity method (Note 6(e)) 793,212 2 1600 Property, plant and equipment (Notes 6(h), 8 and 9(a)) 10,642,730 22 1755 Right-of-use assets (Note 6(i)) 1,961,585 4 1760 Investment property, net (Notes 6(j) and 8) 664,629 1 1780 Intangible assets (Note 6(k)) 411,925 1 1840 Deferred tax assets 97,159 - 1975 Non-current net defined benefit assets 13,117 - 1980 Other non-current financial assets (Notes 6(l), (aa), 7 and 9(a)) 686,732 1 1990 Other non-current assets, others (Notes 6(m), 7, 8 and 9(a)) 2,747,299 6 Total non-current assets 18,170,730 37 Total assets $ 48,916,002 100	December 31, 2021 Amount % 5,039,645 10 4,071,069 8 2,721 - 121,582 - 25,652 - 20,007,434 40 328,881 1 2,195,250 4 325,606 1 313,912 1 32,431,752 65 215,295 - 751,056 2 10,590,049 21 2,033,761 4 706,674 2 400,544 1 34,713 - 14,172 - 687,586 1 2,106,431 4 17,540,281 35 49,972,033 100	June 30, 2021 Amount % 4,186,529 9 3,887,874 8 3,094 - 73,653 - 46,455 - 21,131,088 43 300,459 1 1,525,948 3 448,526 1 360,182 1 31,963,808 66 216,561 1 696,554 1 10,254,114 21 2,125,231 4 708,211 2 393,294 1 31,451 - 13,931 - 683,655 1 1,648,775 3 16,771,777 34 48,735,585 100 June 30, 2022 Liabilities and equity Amount % Current liabilities: 2100 Short-term borrowings (Notes 6(n) and (aa)) $ 10,256,925 21 2130 Current contract liabilities (Notes 6(x), 7 and 9(a)) 4,191,374 9 2170 Notes and accounts payable (Notes 6(aa) and 7) 2,861,703 6 2180 Accounts payable due to related parties (Notes 6(aa) and 7) 27,238 - 2200 Other payables (Note 6(aa)) 2,186,495 5 2220 Other payables due to related parties (Notes 6(aa) and 7) 278 - 2230 Current income tax liabilities 42,574 - 2280 Current lease liabilities (Notes 6(q) and (aa)) 188,872 - 2322 Long-term borrowings, current portion (Notes 6(o) and (aa)) 542,995 1 2399 Other current liabilities (Note 6(t)) 157,861 - Total current liabilities 20,456,315 42 Non-current liabilities: 2500 Non-current financial liabilities at fair value through profit or loss(Notes 6(p) and (aa)) 6,933 - 2530 Bonds payable (Notes 6(p) and (aa)) 1,576,170 3 2540 Long-term borrowings (Notes 6(o) and (aa)) 7,959,193 16 2570 Deferred tax liabilities 467,115 1 2580 Non-current lease liabilities (Notes 6(q) and (aa)) 1,570,052 3 2640 Non-current net defined benefit liabilities 21,963 - 2670 Other non-current liabilities, others (Notes 6(r), (aa) and7) 468,684 1 Total non-current liabilities 12,070,110 24 Total liabilities 32,526,425 66 Equity attributable to owners of parent (Note 6(v)): 3100 Ordinary share 3,761,221 8 3200 Capital surplus(Notes 6(p)) 1,542,162 3 3300 Retained earnings 7,113,815 15 3400 Other equity 155,102 - Total equity attributable to owners of parent: 12,572,300 26 36XX Non-controlling interests 3,817,277 8 Total equity 16,389,577 34 Total liabilities and equity $ 48,916,002 100	June 30, 2022		December 31, 2021		June 30, 2021
			Amount %		Amount %		Amount %
					9,071,826 18 3,620,534 7 3,394,708 7 26,827 - 1,931,916 4 30,003 - 81,833 - 179,629 - 1,612,105 4 138,402 - 20,087,783 40 - - - - 10,536,188 21 498,392 1 1,649,203 4 25,347 - 427,467 1 13,136,597 27 33,224,380 67 3,761,221 7 1,488,270 3 7,472,339 15 52,785 - 12,774,615 25 3,973,038 8 16,747,653 33 49,972,033 100		10,624,062 22 3,933,184 8 2,725,266 6 29,341 - 2,176,141 5 197,382 - 63,086 - 180,389 - 1,007,366 2 150,135 - 21,086,352 43 - - - - 9,428,600 19 585,258 1 1,732,016 4 27,468 - 321,458 1 12,094,800 25 33,181,152 68 3,761,221 8 1,487,802 3 6,494,665 13 (2,803) - 11,740,885 24 3,813,548 8 15,554,433 32 48,735,585 100

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three Months and Six Months Ended June 30, 2022 and 2021

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

For the Three Months Ended June 30 2022 2021 Amount % Amount % 4000 Operating revenues (Notes 6(x) and 7) $ 3,040,393 100 3,308,803 100 5000 Operating costs (Notes 6(d),(t) and 7) (2,488,696) (82) (2,626,182) (79) Gross profit from operations 551,697 18 682,621 21 Operating expenses (Note 6(t) and 7): 6100 Selling expenses (143,924) (5) (150,687) (5) 6200 Administrative expenses (Note 6(y)) (366,669) (12) (361,531) (11) 6300 Research and development expenses (8,788) - (2,681) - 6450 Expected credit (losses) gains (Note 6(c)) (1,473) - (185) - Total operating expenses (520,854) (17) (515,084) (16) Net operating income 30,843 1 167,537 5 Non-operating income and expenses: 7100 Interest income (Notes 6(z) and 7) 8,168 - 11,568 - 7010 Other income (Notes 6(z) and 7) 40,282 2 42,611 1 7020 Other gains and losses (Notes 6(g), (p) and (z)) 23,320 1 (14,123) (1) 7050 Finance costs (Note 6(z)) (62,137) (2) (63,663) (1) 7060 Share of loss of associates and joint ventures accounted for using equity method, net (Note 6(e)) (25,350) (1) (38,964) (1) Total non-operating income and expenses (15,717) - (62,571) (2) Profit from continuing operations before tax 15,126 1 104,966 3 7950 Less: Tax benefit (expense) (Note 6(u)) 75,456 2 (19,456) (1) 8200 Net profit 90,582 3 85,510 2 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss: 8316 Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income (Notes 6(v) and (aa)) (11,969) - (9,506) - 8349 Less:Income tax related to components of other comprehensive income that will not be reclassified to profit or loss - - - - Total items that may not be reclassified subsequently to profit or loss (11,969) - (9,506) - 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign financial statements (Note 6(v)) (207,804) (7) (48,535) (1) 8399 Less:Income tax related to components of other comprehensive income that will be reclassified to profit or loss - - - - Total items that may be reclassified subsequently to profit or loss (207,804) (7) (48,535) (1) 8300 Other comprehensive income (after tax) (219,773) (7) (58,041) (1) 8500 Comprehensive income $ (129,191) (4) 27,469 1 Net profit, attributable to: 8610 Owners of parent $ 92,432 3 57,806 1 8620 Non-controlling interests (1,850) - 27,704 1 $ 90,582 3 85,510 2 Comprehensive income attributable to: 8710 Owners of parent $ (96,220) (3) 13,664 - 8720 Non-controlling interests (32,971) (1) 13,805 1 $ (129,191) (4) 27,469 1 Earnings per share (expressed in dollars) (Note 6(w)) 9750 Basic earnings per share $ 0.25 0.15 9850 Diluted earnings per share $ 0.21 0.15	For the Six Mo June	nths Ended 30 2021 Amount % 6,918,516 100 (5,383,370) (78) 1,535,146 22 (307,473) (4) (729,076) (11) (6,306) - 127 - (1,042,728) (15) 492,418 7 29,032 - 64,772 1 (24,902) - (119,157) (2) (61,419) (1) (111,674) (2) 380,744 5 (74,618) (1) 306,126 4 (12,189) - - - (12,189) - (143,828) (2) - - (143,828) (2) (156,017) (2) 150,109 2 231,315 3 74,811 1 306,126 4 105,587 1 44,522 1 150,109 2 0.62
	2022 Amount % 7,635,925 100 (5,980,279) (78) 1,655,646 22 (288,351) (4) (779,378) (11) (11,594) - (1,372) - (1,080,695) (15) 574,951 7 15,959 - 63,090 1 42,946 1 (113,786) (2) (34,613) - (26,404) - 548,547 7 13,421 - 561,968 7 (17,765) - - - (17,765) - 154,637 2 - - 154,637 2 136,872 2 698,840 9 438,713 5 123,255 2 561,968 7 541,203 7 157,637 2 698,840 9 1.17 1.02
		0.61

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the Six Months Ended June 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

		Equity Attributable to Owners of	Equity Attributable to Owners of	Equity Attributable to Owners of	Equity Attributable to Owners of	Parent	Parent	Parent			Non- Controlling Interests	Total Equity
Share Capital	Capital Surplus	Retained Earnings				Other Equity			Total Equity Attributable to Owners of Parent
						Exchange Differences on Translation of Foreign Financial Statements	Unrealized Gains (Losses) from Financial Assets Measured at Fair Value Through Other Comprehensive Income
Ordinary Share		Legal Reserve		Special Reserve	Unappropriated Retained Earnings
	1,487,802		1,801,169	56,109	4,794,062	32,198		93,833		12,026,394	3,975,678 74,811 (30,289) 44,522 - - (12,927) (193,725) - 3,813,548 3,973,038 123,255 34,382 157,637 - - - - - (1,544) (311,854) - 3,817,277	16,002,072
	- -		- -	- -	231,315 -							306,126 (156,017)
	-		-	-	231,315							150,109
	- - - - -		- - - - -	- - - - -								(387,406) (3,690) (12,927) (193,725) -
	1,487,802		1,801,169	56,109								15,554,433
	1,488,270		1,844,008	49,081								16,747,653
	- -		- -	- -								561,968 136,872
	-		-	-								698,840
	- - 5,330 - 48,562 - - -		120,840 - - - - - - -	- - - - - - - -								- (793,618) 5,330 (3,792) 48,562 (1,544) (311,854) -
	1,542,162		1,964,848	49,081								16,389,577

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit losses (gains) Net losses on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of losses of associates and joint ventures accounted for using equity method Losses on disposal of property, plant and equipment Property, plant and equipment transferred to expenses Losses on disposal of investment accounted for using equity method Lease modification gains Effect of exchange rate changes on short-term and long-term borrowings Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Notes and accounts receivable, net Accounts receivable due from related parties, net Other receivables Inventories Prepayments Other current assets Other financial assets Incremental costs of obtaining contracts Total changes in operating assets Changes in operating liabilities: Notes and accounts payable (including related parties), net Other payables Current contract liabilities Other current liabilities Other non-current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from (used in) operations Interest received Dividends received Interest paid Income taxes paid Net cash flows generated from (used in) operating activities Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Proceeds from disposal of the subsidiary (net effect of cash) Proceeds from capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in other financial assets Increase in other non-current assets Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term borrowings Decrease in short-term borrowings Increase in short-term notes and bills payable Proceeds from issuing bonds Proceeds from long-term borrowings Repayments of long-term borrowings Payment of lease liabilities Increase in other non-current liabilities Cash dividends paid to non-controlling interests Change in non-controlling interests Net cash flows (used in) generated from financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period	For the Six Month	s Ended June 30 2021 380,744 479,134 2,366 (127) - 119,157 (29,032) (13,512) 61,419 3,532 160 5,013 (8) (17,802)
	2022 $ 548,547 518,242 2,778 1,372 2,641 113,786 (15,959) (16,341) 34,613 4,623 8,036 - - 51,815 705,606 570,385 (2,246) 69,127 (590,500) 63,744 (2,676) 326,047 (64,470) 369,411 (604,618) (489,182) 571,625 11,869 (13,397) (523,703) (154,292) 551,314 1,099,861 8,909 76,889 (157,849) (117,667) 910,143 - 37,190 8,000 (150,015) - 16,432 (264,271) 2,906 - 546,702 (705,396) (508,452) 6,630,748 (5,629,501) 80,056 1,644,717 3,000,000 (6,718,800) (97,169) 1,198 (311,854) (96) (1,400,701) 30,939 (968,071) 5,039,645 $ 4,071,574
		610,300
		(130,283) (3,055) 288,184 (2,915,666) (55,848) (184,993) 36,836 (137,141)
		(3,101,966)
		317,931 37,792 1,441,164 50,231 (13,537)
		1,833,581
		(1,268,385)
		(658,085)
		(277,341) 22,118 13,888 (143,785) (103,354)
		(488,474)
		(460) 29,297 - - 3,632 - (539,174) 2,726 (928) 232 (771,717)
		(1,276,392)
		5,565,901 (3,012,230) 105,074 - 2,696,202 (3,251,392) (95,299) 3,718 (192,744) (25,121)
		1,794,109
		(56,519) (27,276) 4,213,805
		4,186,529

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Six Months Ended June 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars, unless otherwise specified)

(1) Company history

CHINA METAL PRODUCTS CO., LTD. (the “Company”) was established on September 9, 1972, via Ministry of Economic Affairs’ authorization. The registered office is located at 4F, No. 85, Section 4, Ren’ai Road, Taipei. The major business activities of the Company and its subsidiaries (the “Group”) are iron hardware manufacturing and casting, residents and commercial buildings developing, leasing and selling, international hotel servicing and department store retailing. Please refer to Note 14, for the aforementioned information.

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

The accompanying consolidated financial statements were authorized for issue by the Board of Directors on August 11, 2022.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C.(“FSC”) which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2022:

●Amendments to IAS 16 “Property, Plant and Equipment—Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2023, would not have a significant impact on its consolidated financial statements:

●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”
●Amendments to IAS 12 “ Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
●Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information “

(4) Summary of significant accounting policies

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2021. For the related information, please refer to Note 4 of the consolidated financial statements for the year ended December 31, 2021.

(b) Basis of consolidation

Principles of preparation of the consolidated financial statements are the same as those of the consolidated financial statements for the year ended December 31, 2021. For the related information, please refer to Note 4(c) of the consolidated financial statements for the year ended December 31, 2021.

(i) List of subsidiaries in the consolidated financial statements

Investor	Name of Subsidiary	Principal Activity		Percentage Ownership June 30, 2022 December 31, 2021 June 30, 2021 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 85.51 Note 1 % 99.01 % 99.00 % 99.00 Note 1	Percentage Ownership June 30, 2022 December 31, 2021 June 30, 2021 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 85.51 Note 1 % 99.01 % 99.00 % 99.00 Note 1
				June 30, 2022	December 31, 2021
The Company The Company and Sunflower Investment The Company	United Elite Agents Limited (UEA) Atrans Precision Industries Co., Ltd. (Atrans Precision) Sunflower Investment Co., Ltd. (Sunflower Investment)	Investing Vehicle parts processing Investing		% 100.00 % 85.51 % 99.01	% 100.00 % 85.51 % 99.00

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Investor	Name of Subsidiary	Principal Activity		Percentage Ownership June 30, 2022 December 31, 2021 June 30, 2021 Note % 100.00 % 100.00 % 100.00 Note 3 % 100.00 % 100.00 % 94.00 Note 1 % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.72 % 71.72 % 71.72 Note 2 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 83.27 % 83.27 % 82.74 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2	Percentage Ownership June 30, 2022 December 31, 2021 June 30, 2021 Note % 100.00 % 100.00 % 100.00 Note 3 % 100.00 % 100.00 % 94.00 Note 1 % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.72 % 71.72 % 71.72 Note 2 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 83.27 % 83.27 % 82.74 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2
				June 30, 2022	December 31, 2021
The Company The Company The Company The Company The Company and Sunflower Investment The Company and PUJEN Land Development The Company The Company UEA CMI CMI CMI CMB (H.K.) CMI (BVI) CMP (H.K.) CMP (H.K.) CMW (C.I.)	The Hotel National Co., Ltd. (The Hotel National) CHINA METAL AUTOMOTIVE INTERNATIONAL CO., LTD. (CMAI) CMJ CO., LTD. (CMJ) National Management Co., Ltd. (National Management) PUJEN Land Development Co., Ltd. (PUJEN Land Development) Shangrila Tourism Co., Ltd. (Shangrila Tourism) InterContinental Taichung Co., Ltd. (InterContinental Taichung) Calligraphy Greenway Plaza Co., Ltd. (Calligraphy Greenway Plaza) China Metal International Holdings Inc. (CMI) China Metal International (BVI) Limited (CMI (BVI)) CMW (Cayman Islands) Co., Ltd. (CMW (C.I.)) CMB (H.K.) Co., Ltd. (CMB (H.K.)) Suzhou CMB Machinery Co., Ltd. (Suzhou CMB) CMP (H.K.) Industry Co., Ltd. (CMP (H.K.)) Tianjin CMT Industry Co., Ltd. (Tianjin CMT) Suzhou CMS Machinery Co., Ltd. (Suzhou CMS) CMW (Tianjin) Industry Co., Ltd. (CMW (Tianjin))	International tourist hotel services and other hotel business approved by the Ministry of Transportation and Communications Vehicle parts retailing Cast iron product retailing Management and consulting services Residents, commercial buildings and factories leasing and developing Amusement park and hotel services International tourist hotel services Management and consulting services Investing and cast iron product retailing Investing Investing Investing Cast iron product designing, manufacturing and retailing Investing Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling		% 100.00 % 100.00 % 83.33 % 100.00 % 71.72 % 100.00 % 100.00 % 100.00 % 83.27 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 83.33 % 100.00 % 71.72 % 100.00 % 100.00 % 100.00 % 83.27 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

			Percentage Ownership	Percentage Ownership	Percentage Ownership	Percentage Ownership	Percentage Ownership
			June 30,		December 31,		June 30,
Investor	Name of Subsidiary	Principal Activity	2022		2021		2021		Note
CMW (C.I.)	CMI (Wu Han) Precision Machinery	Vehicle parts, farm wagon	100.00	%	100.00	%	100.00	%	Notes 2
	Co., Ltd. (CMH)	parts, industrial wagon parts,
		household appliances parts
		and E&M as-casting and
		molds developing,
		manufacturing, selling and
		the after sales services
CMJ	Qingdao Sourcing Specialists Trading	Cast iron product retailing	100.00	%	100.00	%	100.00	%	Note 1
	Co., Ltd. (Qingdao Sourcing Specialists)
Atrans Precision FAR HSING (SAMOA) ENTERPRISE		Investing	100.00	%	100.00	%	100.00	%	Note 1
	CO., LTD. (FAR HSING (SAMOA))
PUJEN Land	CHINGENG Land Development Co.,	Residents, commercial	50.00	%	50.00	%	50.00	%	Note 1
Development	Ltd. (CHINGENG Land Development)	buildings and factories
		leasing and developing
PUJEN Land	PUJEN CHENGMEI Land Development	Residents, commercial	70.00	%	70.00	%	70.00	%	Note 1
Development	Co., Ltd. (PUJEN CHENGMEI Land	buildings and factories
	Development)	leasing and developing
PUJEN Land	PUCHIA Land Development Co., Ltd.	Residents, commercial	50.00	%	50.00	%	50.00	%	Note 1
Development	(PUCHIA Land Development)	buildings and factories
		leasing and developing
CMAI	CMAI Holding, Inc. (CMAI Holding)	Investing	100.00	%	100.00	%	100.00	%	Note 1
CMAI Holding	Pilot Drive LLC (Pilot)	Assets leasing	100.00	%	100.00	%	100.00	%	Note 1
Pilot	CMAI INDUSTRIES, INC. (CMAI	Vehicle parts retailing	100.00	%	100.00	%	100.00	%	Note 1
	N.A.)
Note 1: An non-significant subsidiary, its financial statements have					not been	reviewed.
Note 2: The financial statements have been reviewed.
Note 3: The financial statements have been reviewed for the six months ended							June 30, 2022;
	the financial statements have not been reviewed		for the	six months ended June					30,
	2021.

(ii) Subsidiaries excluded from the consolidated financial statements: None.

(c) Income taxes

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

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

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

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Employee benefits

The pension cost for the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, and be adjusted by the significant market flotation, significant curtailment, settlement or other significant single occasions.

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

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2021. For the related information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2021.

(6) Explanation of significant accounts:

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2021. Please refer to Note 6 of the 2021 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash on hand Cash in banks Time deposits Cash and cash equivalents	June 30, 2022 $ 6,246 3,056,348 1,008,980 $ 4,071,574	December 31, 2021 7,421 4,412,238 619,986 5,039,645	June 30, 2021
			6,345 3,093,545 1,086,639
			4,186,529

Please refer to Note 6(aa) for the sensitivity analysis of the financial assets.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Non-current financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income Stocks listed on domestic markets— Yung Tay Engineering Co., Ltd. (Note 1) Stocks unlisted on domestic markets— MEITA Industrial Co., Ltd. Stocks unlisted on domestic markets— YUHUA Venture Capital Co., Ltd. (Note 2) Stocks unlisted on domestic markets— FUHUA Venture Capital Co., Ltd. (Note 3) Stocks unlisted on domestic markets— GUANGYUAN Investment Co., Ltd. Stocks unlisted on domestic markets— DEVELOPMENT Venture Capital Co., Ltd. Total	June 30, 2022 $ - 104,442 - - 30,391 17,509 $ 152,342	December 31, 2021 36,901 119,433 207 674 33,824 24,256 215,295	June 30, 2021
			35,297 118,425 485 1,107 32,923 28,324
			216,561

Note 1:Yung Tay Engineering Co., Ltd. had been delisted on March 9, 2022, and changed its name to Hitachi Yungtay Elevator Co., Ltd. on May 30, 2022.
Note 2:YUHUA Venture Capital Co., Ltd. had completed its liquidation registration procedures on June 13, 2022.
Note 3:FUHUA Venture Capital Co., Ltd. had completed its liquidation registration procedures on June 10, 2022.
(i) The Group holds the equity investments for long-term strategic purposes, rather than transaction purposes. Therefore, the investments are measured at FVOCI.
(ii) For the three months and six months ended June 30, 2022 and 2021, the Group received dividend income amounting to $16,341 thousand, $13,512 thousand, $16,341 thousand and $13,512 thousand, respectively, from the above investments measured at FVOCI.
(iii) In the second quarter of 2022 and 2021, the Group has sold its shares of Yung Tay Engineering Co., Ltd., as a result of a takeover offer for cash. The shares sold had a fair value of $37,190 thousand and $29,297 thousand, and disposal gain of $175 thousand and $3,137 thousand, which was reclassified from other comprehensive income to retained earnings.
(iv) Please refer to Note 6(aa) for the information on credit risk (including the impairment of debt instrument investments) and market risk.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) As of June 30, 2022, December 31 and June 30, 2021, the financial assets were not pledged as collateral.

Notes receivable from operating activities Accounts receivable measured as amortized cost Subtotal Less: Loss allowance Total	June 30, 2022 $ 416,242 3,159,782 3,576,024 (5,203) $ 3,570,821	December 31, 2021 472,727 3,602,106 4,074,833 (3,764) 4,071,069	June 30, 2021 489,390 3,401,456 3,890,846 (2,972) 3,887,874

The Group applies the simplified approach to estimate its expected credit losses, which permit the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as forward-looking information including macroeconomics and relative industries information. The loss allowance provision is determined as follows:

	June 30, 2022
Gross Carrying Amount Weighted Average Loss Rate $ 3,294,599 0% 176,710 0% 68,411 0% 27,189 0%~13.5% 7,720 35.48%~43.37% 1,395 100% $ 3,576,024 December 31, 2021		Loss Allowance Provision
		- - - 488 3,320 1,395
		5,203

Gross Carrying Amount $ 3,891,446 133,925 38,535 6,019 3,422 1,486 $ 4,074,833	Weighted Average Loss Rate 0% 0% 0% 0%~13.5% 35.48%~43.37% 100%	Loss Allowance Provision
		- - - 807 1,471 1,486
		3,764

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	June 30, 2021
Gross Carrying Amount $ 3,738,295 108,403 33,098 9,667 611 772 $ 3,890,846	Weighted Average Loss Rate 0% 0% 0%~6% 0%~10.54% 25.08%~32.97% 100%	Loss Allowance Provision
		- - 1,050 967 183 772
		2,972

The movements in the allowance for notes and accounts receivable is as follows:

Balance on January 1 Impairment losses (recovery) recognized Foreign exchange losses (gains) Balance on June 30	For the Six Months Ended June 30 2022 2021 $ 3,764 3,120 1,372 (127) 67 (21) $ 5,203 2,972
	2022 $ 3,764 1,372 67 $ 5,203

The financial assets mentioned above were not pledged as collateral.

(d) Inventories

Raw materials Work in process Semi-finished goods Finished goods Merchandise Land held for development Properties and land held for sale Construction-in-progress Prepayments for land Other inventories	June 30, 2022 $ 267,840 295,825 140,612 1,639,377 101,633 7,801,241 310,399 9,519,996 427,896 214,601 $ 20,719,420	December 31, 2021 227,769 380,486 136,793 1,535,036 90,107 7,553,256 1,367,387 8,268,758 239,924 207,918 20,007,434	June 30, 2021
			155,735 297,145 133,190 1,098,158 71,308 7,346,655 3,594,038 7,969,841 166,995 298,023
			21,131,088

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months and six months ended June 30, 2022 and 2021, the cost of goods sold amounted to $2,488,696 thousand, $2,626,182 thousand, $5,980,279 thousand and $5,383,370 thousand, respectively. For the three months and six months ended June 30, 2022 and 2021, the loss for inventory obsolescence from the decrease in inventories' net realizable value amounted to $(15,794) thousand, $(2,285) thousand, $(6,981) thousand and $(420) thousand, respectively.

For the information on inventories pledged as collateral, as of June 30, 2022, December 31 and June 30, 2021, please refer to Note 8.

(e) Investments accounted for using equity method

The components of investments accounted for using the equity method at the reporting date is as follows:

Associates Joint ventures	June 30, 2022 $ 466,215 326,997 $ 793,212	December 31, 2021 537,067 213,989 751,056	June 30, 2021
			451,901 244,653
			696,554

(i) Associates

Due to the fact that the Group does not have the obligation of assuming the excess losses, it ceased the recognition of the losses from the investment of Amida Trustlink Assets Management Co., Ltd. (Amida Trustlink Assets). For the three months and six months ended June 30, 2022 and 2021, the unrealized investment losses amounted to $71 thousand, $73 thousand, $144 thousand and $144 thousand, respectively; the accumulated unrealized investment losses, as of June 30, 2022 and 2021, amounted to $57,912 thousand and $57,553 thousand, respectively.

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

				June 30,		December 31,	December 31,	June 30,	June 30,
				2022		2021		2021
Carrying amount of individually			$	466,215		537,067		451,901
insignificant	associates' equity
		For the	Three Months Ended June 30			For the Six Months		Ended June	30
		2022		2021		2022		2021
Attributable to the	Group:
Net income (loss)		$	2,843		(4,300)		3,669		(8,565)
Other comprehensive			-	-		-		-
income
Comprehensive	income	$	2,843		(4,300)		3,669		(8,565)

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Joint ventures

The Group’s financial information for joint ventures accounted for using the equity method that were individually insignificant is as follows:

				June 30,	December	31,	June 30,
				2022	2021		2021
Carrying amount of individually			$	326,997	213,989		244,653
insignificant	joint ventures' equity
		For the	Three Months Ended June 30		For the Six Months		Ended June 30
		2022		2021	2022		2021
Attributable to the	Group:
Net loss		$	(28,193)	(34,664)		(38,282)	(52,854)
Other comprehensive			-	-	-		-
income
Comprehensive	income	$	(28,193)	(34,664)		(38,282)	(52,854)

(iii) Pledge to secure

As of June 30, 2022, December 31 and June 30, 2021, the investments accounted for using equity method were not pledged as collateral.

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

The investments were accounted for by the equity method, and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.

(f) Changes in a parent's ownership interest in a subsidiary
(i) Acquisition of additional shares interests of subsidiary

For the six months ended June 30, 2022 the Group obtained Sunflower Investment additional equity on $96 thousand, increasing the percentage ownership from 99.00% to 99.01%.

The information on the influence of subsidiaries’ equities variation to the Group’s equity is as follows:

Acquisition of non-controlling interests Payment to non-controlling interests Difference between consideration and carrying amount of subsidiaries acquired or disposed of	For the Six Months Ended June 30 2022 Sunflower Investment $ 98 (96) $ 2

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Loss of control over a subsidiary

The Group had sold 50% of its shares in Pu Sheng Construction Co., Ltd. wherein the proceeds of $4,614 thousand on March 31, 2021, resulted in a loss of control over the Pu Sheng Construction and a loss on disposal of investment amounting to $5,013 thousand.

(h) Property, plant and equipment

The cost and accumulated depreciation of the property, plant equipment of the Group for the six months ended June 30, 2022 and 2021 are as follows:

Buildings	Construction in Progress	Total 19,117,077 264,271 (140,511) 61,991 310,757
3,840,120 1,931 - 159,945 67,996 4,069,992 3,445,580 - (1,756) 677 (38,645) 3,405,856 1,539,755 59,937 - - 22,498 1,622,190 1,448,672 50,744 (1,757) - (14,569) 1,483,090 2,300,365 2,447,802 1,996,908 1,922,766	1,321,500 167,018 - (356,990) 26,624 1,158,152 1,202,077 459,973 - (136,781) (20,861) 1,504,408 - - - - - - - - - - - - 1,321,500 1,158,152 1,202,077 1,504,408
		19,613,585
		18,231,631 539,174 (130,740) 26,334 (204,279)
		18,462,120
		8,527,028 411,261 (132,982) 2,214 163,334
		8,970,855
		8,067,068 373,954 (124,482) - (108,534)
		8,208,006
		10,590,049
		10,642,730
		10,164,563
		10,254,114

As of June 30, 2022, December 31 and June 30, 2021, please refer to Note 8 for the details of property, plant and equipment pledged as collateral for the Group’s long-term loan and financing guarantee.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Right-of-use assets

The cost and accumulated depreciation of the right-of-use assets, which includes land, buildings, machinery and transportation equipment rented by the Group, for the six months ended June 30, 2022 and 2021 are as follows:

Cost: Balance on January 1, 2022 Additions Reduction for expiration Influence from exchange rates Balance on June 30, 2022 Balance on January 1, 2021 Additions Reduction for expiration Influence from exchange rates Balance on June 30, 2021 Accumulated depreciation: Balance at January 1, 2022 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on June 30, 2022 Balance on January 1, 2021 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on June 30, 2021 Carrying value: Balance on January 1, 2022 Balance on June 30, 2022 Balance on January 1, 2021 Balance on June 30, 2021	Land $ 1,004,772 - - 7,791 $ 1,012,563 $ 1,007,888 - - (5,452) $ 1,002,436 $ 177,882 11,810 - - 2,090 $ 191,782 $ 155,174 11,747 - - (1,379) $ 165,542 $ 826,890 $ 820,781 $ 852,714 $ 836,894	Buildings 2,393,697 8,840 (658) 19 2,401,898 2,394,673 1,316 (1,090) - 2,394,899 1,317,008 81,492 421 (658) 3 1,398,266 1,158,342 80,390 400 (1,090) - 1,238,042 1,076,689 1,003,632 1,236,331 1,156,857	Machinery 47,835 17,588 (34,022) 862 32,263 48,195 - - (629) 47,566 39,869 7,319 - (34,022) 719 13,885 29,119 6,721 - - (452) 35,388 7,966 18,378 19,076 12,178	Transportation Equipment 23,183 1,508 (2,839) 61 21,913 17,318 9,276 (1,864) (16) 24,714 7,254 2,977 - (2,839) 29 7,421 12,171 2,792 - (1,864) (15) 13,084 15,929 14,492 5,147 11,630	Office Equipment 2,046 - (344) 40 1,742 2,228 723 (889) (13) 2,049 966 221 - (344) 32 875 1,122 220 - (586) (7) 749 1,080 867 1,106 1,300	Other Equipment 122,673 - - - 122,673 122,262 - - - 122,262 17,466 1,772 - - - 19,238 14,117 1,773 - - - 15,890 105,207 103,435 108,145 106,372	Total 3,594,206 27,936 (37,863) 8,773 3,593,052 3,592,564 11,315 (3,843) (6,110) 3,593,926 1,560,445 105,591 421 (37,863) 2,873 1,631,467 1,370,045 103,643 400 (3,540) (1,853) 1,468,695 2,033,761 1,961,585 2,222,519 2,125,231

(j) Investment property

Investment property comprises office buildings that are leased to third parties under operating leases, as well as properties that are owned by the Group. The leases of investment properties contain an initial non-cancellable lease term of 5 to 10 years. Some leases provide the lessees with options to extend at the end of the term.

For all investment property leases, the rental income is fixed under the contracts, but some leases require the lessee to reimburse the insurance costs of the Group. When this is the case, the amounts of insurance costs are determined annually.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The movements in the investment property is as follows:

Carrying value: Balance on January 1, 2022 Balance on June 30, 2022 Balance on January 1, 2021 Balance on June 30, 2021	Owned Property Land Buildings $ 609,567 97,107 $ 596,723 67,906 $ 593,697 97,459 $ 609,567 98,644	Total
	Land $ 609,567 $ 596,723 $ 593,697 $ 609,567
		706,674
		664,629
		691,156
		708,211

Investment properties comprise a number of commercial properties that are leased to third parties. Each leasing contact includes an original non-cancelable lease term of one to three years, and the lease term of the renewal is available for discussion with the lessee. The contingent rent is not charged in the contract. Please refer to Note 6(s) for the regarding information.

There were no significant additions, disposal, or recognition and reversal of impairment losses of investment properly for the six months ended June 30, 2022 and 2021. Information on depreciation for the period is discussed in Note 12(c), and for the information on rental revenue and other direct operating expense, please refer to Note 6(s).

The fair value of the investment property was not significantly different from those disclosed in the Note 6(j) of the annual consolidated financial statements for the year ended December 31, 2021.

As of June 30, 2022, December 31 and June 30, 2021, the details of investment properties pledged as collateral, please refer to Note 8.

(k) Intangible assets

The movements in the costs of intangible assets and amortization of the Group are as follows:

Cost: Balance on January 1, 2022 Influence from exchange rates Balance on June 30, 2022 Balance on January 1, 2021 Acquisitions Reclassification Influence from exchange rates Balance on June 30, 2021	Goodwill $ 385,268 14,159 $ 399,427 $ 390,862 - - (6,412) $ 384,450	Patent 63,088 1,453 64,541 63,669 - - (1,017) 62,652	Client Relationship 227,751 5,248 232,999 229,850 - - (3,673) 226,177	Computer Software 43,337 220 43,557 32,878 928 383 (68) 34,121	Total 719,444 21,080
					740,524
					717,259 928 383 (11,170)
					707,400

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Accumulated amortization: Balance on January 1, 2022 Amortization Influence from exchange rates Balance on June 30, 2022 Balance on January 1, 2021 Amortization Influence from exchange rates Balance on June 30, 2021 Carrying value: Balance on January 1, 2022 Balance on June 30, 2022 Balance on January 1, 2021 Balance on June 30, 2021	Goodwill $ - - - $ - $ - - - $ - $ 385,268 $ 399,427 $ 390,862 $ 384,450	Patent 63,088 - 1,453 64,541 63,669 - (1,017) 62,652 - - - -	Client Relationship 227,751 - 5,248 232,999 229,850 - (3,673) 226,177 - - - -	Computer Software 28,061 2,778 220 31,059 22,978 2,366 (67) 25,277 15,276 12,498 9,900 8,844	Total 318,900 2,778 6,921 328,599 316,497 2,366 (4,757) 314,106 400,544 411,925 400,762 393,294

(l) Other non-current financial assets

Debt obligation receivable－The Splendor Hospitality International Co., Ltd. Debt obligation receivable－Chin Ling Steel Co., Ltd.－Non-guaranteed Less: Accumulated impairment－Debt obligation receivable－Chin Ling Steel Co., Ltd. Refundable deposits	June 30, 2022 $ 575,000 23,250 (23,250) 111,732 $ 686,732	December 31, 2021 575,000 23,250 (23,250) 112,586 687,586	June 30, 2021 575,000 23,250 (23,250) 108,655 683,655

(i) In June, 2006, the Group and Prince Housing and Development Co., Ltd. (Prince Housing and Development) entered into an assignment of debt agreement with Amida Trustlink Assets which the Group and Prince Housing and Development each owned half of the obligation. The Group and Prince Housing and Development each injected 50% and obtained the major mortgages, collateral, and the appurtenant rights of Taichung Port Splendor Hospitality International Co., Ltd. (Taichung Port Splendor). The Group and Prince Housing and Development agreed to pay Amida Trustlink Assets the residual debt in the agreement, the related costs and returns when the real right of the underlying is completed. The Group and Prince Housing and Development each injected 50% and cofounded The Splendor Hospitality International Co., Ltd. (The Splendor Hospitality International). In November 2006, The Splendor Hospitality International and Taichung Port Splendor entered into a specific asset transfer agreement and obtained the specific assets of Taichung Port Splendor by assuming its

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

debts. The Group’ s right of receivables transferred from Taichung Port Splendor to The Splendor Hospitality International. In December 2006, the Group and Prince Housing and Development signed a supplementary agreement with Amida Trustlink Assets which increased the selling price of all debt obligations and canceled the payment of the related cost and return. The verdinglichung obligatorischer rechte was assumed by the Group and Prince Housing and Development equally. The details of total debt obligation receivable and obligation cost after deducted the received amount in 2007 is as follows:

June 30, 2022

				June 30, 2022
Underlying	Obligation Cost		Obligation Principal	Valuation Assessment Collateral According to the assessment of Zhonglian Real Estate Appraiser Joint Office, the valuation of mortgage is $8,132,816 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $2,086,408 thousand. The building of The Splendor Hospitality International (the 2nd security) December 31, 2021
The Splendor Hospitality International Underlying	$ 575,000		796,845
		Obligation Cost	Obligation Principal	Valuation Assessment Collateral According to the assessment of Zhonglian Real Estate Appraiser Joint office, the valuation of mortgage is $7,674,024 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $1,857,012 thousand. The building of The Splendor Hospitality International (the 2nd security) June 30, 2021
The Splendor Hospitality International Underlying	$ 575,000		796,845
		Obligation Cost	Obligation Principal	Valuation Assessment Collateral According to the assessment of Zhonglian Real Estate Appraiser Joint Office, the valuation of mortgage is $7,674,024 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $1,857,012 thousand. The building of The Splendor Hospitality International (the 2nd security)
The Splendor Hospitality International	$ 575,000		796,845

(ii) As of June 30, 2022, December 31 and June 30, 2021, the cost and principal of debt obligation from Chin Ling Steel were $23,250 thousand and $118,561 thousand, respectively.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Other non-current assets

The details of other non-current assets are as follows:

Construction in progress Land Other	June 30, 2022 $ 2,505,764 44,299 197,236 $ 2,747,299	December 31, 2021 1,964,821 44,299 97,311 2,106,431	June 30, 2021
			1,488,217 44,299 116,259
			1,648,775

(i) The construction in progress is the development of land and shopping mall of the Group, please refer to Note 9(a), (ix) for details.
(ii) The land held by the Group is located at Xinfeng Township Kengzikou and Zaoqiao Township Niulan Lake. According to the laws and regulations, companies cannot be registered as landowners, due to the usage of the land is registered for farming, graveyard and conservation. Therefore, the ownership of the land was passed to individuals and was registered as private personal property. For obtaining the right of land, the Group held the land certificate and entered into an agreement with the registered owner, which specified that the Group retain all rights and obligations of the land, and pledged the land as collateral for the Group.

(n) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Notes and bills payable Total Unused credit limit Range of interest rates	June 30, 2022 $ 4,483,944 5,208,126 564,855 $ 10,256,925 $ 7,628,680 0.89%~4.25%	December 31, 2021 3,299,307 5,287,721 484,798 9,071,826 6,298,655 0.52%~4.00%	June 30, 2021
			2,757,511 7,311,911 554,640
			10,624,062
			4,993,516
			0.52%~3.72%

(i) Borrowing and repayment

For the six months ended June 30, 2022 and 2021, the Group obtained from short-term borrowings amounting to $6,630,748 thousand and $5,565,901 thousand with an interest rate of 0.52%～4.25% and 0.52%～3.72%; the repayment amounting to $5,629,501 thousand and $3,012,230 thousand, respectively. Please refer to Note 6(z) for details of the interest expense.

(ii) Collateral for bank borrowings

Please refer to Note 8 for details of the assets pledged as collateral for bank borrowings.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Long-term borrowings

Unsecured bank borrowings Secured bank borrowings Less: Current portion Unamortized long-term borrowings costs Total Unused credit limit Interest rate range	June 30, 2022 $ 2,000,000 6,502,369 (542,995) (181) $ 7,959,193 $ 2,280,336 1.18%~2.17%	December 31, 2021 3,239,717 8,909,079 (1,612,105) (503) 10,536,188 414,003 0.90%~2.81%	June 30, 2021 2,887,543 7,549,080 (1,007,366) (657) 9,428,600 914,243 0.63%~3.70%

(i) Borrowing and repayment

For the six months ended June 30, 2022 and 2021, the Group obtained from long-term borrowings amounting to $3,000,000 thousand and $2,696,202 thousand with an interest rate of 1.02%～1.58% and 1.10%～1.90%; the repayment amounting to $6,718,800 thousand and $3,251,392 thousand, respectively. Please refer to Note 6(z) for details of the interest expense.

(ii) Collateral for bank borrowings

Please refer to Note 8 for details of the assets pledged as collateral for bank borrowings.

(iii) Borrowing covenants

The Group entered into a syndicated loan contract in a total credit of $3,150,000 thousand with multiple financial institutions on April 23, 2019. According to the contract, during the borrowing repayment periods the Company should file annual and semi-annual consolidated financial statements which were audited and reviewed by CPA and must comply with certain financial covenants, such as the current ratio shall be greater than or equal to 100%, the financial debt ratio shall be less than or equal to 180%, the interest coverage ratio shall be greater than or equal to 5 times, and the tangible net value shall be greater than or equal to $14,000,000 thousand. The compliance with the aforementioned covenants will be examined semi-annually. As of June 30, 2022, the Group was in compliance with the above borrowing covenants.

The Group entered into a borrowing contract in a total credit of USD43,230 thousand with one financial institution on November 10, 2020. According to the contract, during the repayment periods the Company should file UEA annual non-consolidated and CMI annual consolidated financial statements which were audited by CPA and must comply with certain financial covenants. The financial covenants based on the years of 2021 and 2020 CMI annual consolidated financial statements is EBITDA/(CPLTD+1), which shall be greater than or equal to 1, and of which based on UEA annual non-consolidated and CMI annual consolidated financial statements is debt ratio, which shall be less than or equal to 80%. The compliance with the aforementioned covenants will be examined annually. As of December 31, 2021, the Group was in compliance with the above borrowing covenants.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Bonds payable

The details of the bonds payable is as follows:

Unsecured convertible bonds $ Unamortized premium on bonds payable $ Embedded derivative-call option and put option (which is listed under "non- current financial liabilities at FVTPL") $ Equity component-convertible option (which is listed under "capital surplus-stock option") $ For the Three Months Ended June 30 2022 Embedded derivative-losses on remeasurements through fair value (which is listed under "other gains and losses") $ (2,311) Interest expense $ (7,827)		June 30, 2022
		1,500,000 76,170
		1,576,170
		6,933
		48,562
		For the Six Months Ended June 30 2022 (2,641) (15,692)

On January 24,2022, the Group issued the fourth domestic unsecured convertible corporate bonds amounting to $1.5 billion with the following conditions:

(i) Coupon rate: 0%
(ii) Issuance period: Three years (maturing on January 24,2025)
(iii) Repayment: Unless the bonds had been redeemed before maturity, repurchased and converted, the bonds will be redeemed by the Group upon maturity at par value.
(iv) Redemption: The Group will redeem the bonds from its creditors under the following circumstances:
1) The Group would repurchase the bond at par value if the close price of the Group’ s ordinary share listed on the Taiwan Stock Exchange exceeds or equals 30% of the conversion price for 30 consecutive days from the day after the bonds have been issued for three months to 40 days before maturity.
2) The Group would repurchase the bond at par value if the outstanding balance of bonds is less than 10% of the original issuance value from the day after the bonds have been issued for three months to 40 days before maturity.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Repurchase:

The holders can require the Group to repurchase the bonds at 100.5% of the par value from the day after the bonds have been issued for two years.

(vi) Conversion:

1) The holders can convert the bonds into ordinary shares according to the conversion method from the day after the bonds have been issued for three months to the expiry.
2) The conversion price is $34.2 per share, which is the average close price on the first day, as well as the first three and five operating days, before the base date of the Group’s ordinary share listed on the Taiwan Stock Exchange, which was on January 4, 2022, multiply by 104%. To cooperate with the ex-dividend work in 2022, The conversion price had been adjusted to $32.0 per share on July 20, 2022 (ex-dividends date).

(q) Lease liabilities

The details of the lease liabilities are as follows:

Current Non-current	June 30, 2022 $ 188,872 $ 1,570,052	December 31, 2021 179,629 1,649,203	June 30, 2021
			180,389
			1,732,016

For the maturing analysis, please refer to Note 6(z).

The amounts recognized in profit or loss are as follows:

For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 $ 5,831 $ 2,069 $ -	2021	2022 11,782 4,210 -	2021
	7,611		12,516
	3,040		7,158
	-		5

The amounts recognized in the statement of cash flows are as follows:

Total cash outflow for leases	For the Six Months Ended June 30	For the Six Months Ended June 30
	2022 $ 113,161	2021
		114,973

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Real estate leases

The Group leases land and buildings for its offices, retail stores and future project development. The leases of offices, typically run for a period of 2 years, retail stores for a period of 15 years, and the land use rights leased for future project development for 40 to 50 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases provide for additional rent payments that are based on changes in local price indices, or sales that the Group makes at the leased store in the period. Some also require the Group to make payments that relate to the property taxes levied on the lessor and insurance payments made by the lessor; these amounts are generally determined annually.

Some leases of equipment contain extension or cancellation options exercisable by the Group before the end of the non-cancellable contract period. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. In which the leasee is not reasonably certain to use an optional extended lease term, payments associated with the optional period are not included within lease liabilities.

(ii) Other leases

The Group leases equipment and transportation, with lease terms of 2 to 6 years. In some cases, the Group has options to purchase the assets at the end of the contract term.

The Group also leases equipment and machinery, dormitory and company cars with contract terms of one year. These leases are short-term or low-value items which the Group has elected not to recognize right-of-use assets and lease liabilities.

(r) Provisions

Provisions
Non-current: Financial guarantee contracts Legal Total	June 30, 2022 $ 15,755 236,052 $ 251,807	December 31, 2021 21,289 236,052 257,341	June 30, 2021
			27,933 236,052
			263,985

(i) Financial guarantee contracts

The Group assisted the joint venture to obtain the endorsement guarantee for the credit limit from the financial institutions. According to IFRS 9 “ Financial Instruments”, the financial guarantee contracts are measured at fair value.

(ii) Legal

Please refer to Note 9(b) for the information on estimated legal provisions and losses.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(s) Operating leases

The Group leases out investment properties under operating lease which was classified based on not transferring substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset to the lessee. Please refer to Note 6(j) for the regarding information on investment properties.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

the reporting date are as follows:
Less than one year One to two years Two to three years Total undiscounted lease payments	June 30, 2022	December 31, 2021 13,122 5,265 355 18,742	June 30, 2021
	$ 10,242 5,213 - $ 15,455		16,644 8,049 2,483
			27,176

For the three months and six months ended June 30, 2022 and 2021, rental revenues from investment properties amounted to $3,256 thousand, $3,460 thousand, $6,673 thousand and $6,832 thousand, respectively. The equipment and maintenance costs arising from the investment properties (recognized under "operating costs") are $0 thousands.

(t) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or no other material onetime events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2021 and 2020.

The expenses recognized in profit or loss for the Group are as follows:

For the Three Months Ended June 30 2022 2021 Operating cost $ 13 543 Selling expenses 3 98 Administration expenses 21 237 Research and development expenses - 95 Total $ 37 973	For the Six Months Ended June 30	For the Six Months Ended June 30
	2022 25 5 40 - 70	2021
		1,079 199 475 193
		1,946

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Defined contribution plans

The Group’s expenses under the pension plan cost to the Bureau of Labor Insurance are as follows:

For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30
	2021 10,711 608 7,108 86	2021
		21,398 1,253 14,603 173
	18,513	37,427
	June 30, 2022 11,066	June 30, 2021 13,366
$

(iii) Short-term employee benefits

(u) Income tax

(i) Applicated legal tax rates of foreign subsidiaries: China: 10%~25%; Japan: 33.79%; the USA: 21%.

(ii) The income tax expense are as follows:

Current income tax expense Current period incurred Land value increment taxes Undistributed profit tax Adjustment for prior periods Deferred tax income Origination and reversal of temporary differences Income tax (benefit) expense	For the Three Months Ended June 30	For the Three Months Ended June 30
	2022 $ (8,283) 1,749 14,697 (623) 7,540 (82,996) $ (75,456)	2021

(iii) The income tax returns of the Company through 2020 (except for 2018), as well as the other domestic consolidated subsidiaries ( except for the Shangrila Tourism ) through 2020, had been assessed and approved by the tax authority according to the income tax return filed by the Group. The Company and Sunflower Investment did not agree with the proposed tax adjustments made by the tax authority, and filed the petition of administration. Please refer to Note 9(b) for details.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Share capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the six months ended June 30, 2022 and 2021. For the related information, please refer to Note 6(u) of the consolidated financial statements for the year ended December 31, 2021.

(i) Capital stock

As of June 30, 2022, December 31 and June 30, 2021, the Company’s authorized share capital are 5,000,000 thousands, with par value of $10 per share and the issued capital are $3,761,221 thousand. All the proceeds from the issued capital have been remitted.

(ii) Capital surplus

The components of the capital surplus are as follows:

June 30, 2022 From issuance of share capital $ 611,272 Employee stock option of subsidiaries 33,352 Stock option of convertible bonds 48,562 From conversion of convertible bonds 843,035 Changes in equity of associates and joint ventures accounted for using equity method - Difference between consideration and carrying amount of subsidiaries acquired or disposed of 5,941 $ 1,542,162	December 31, 2021 611,272 33,352 - 843,035 - 611 1,488,270	June 30, 2021
		611,272 33,352 - 843,035 143 -
		1,487,802

(iii) Retained earnings

In accordance with the Company’s Articles of Incorporation, after-tax earnings and other items in undistributed earnings except from after-tax earnings shall first be offset against any deficit, and 10% of the balance shall be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the total authorized capital. Aside from the aforesaid legal reserve, the Company may, as required by its operation or by the government, appropriate for special reserve. The remaining balance of the earnings, if any, may be appropriated according to the distribution plan proposed by the Board of Directors and submitted to the shareholders’ meeting for approval. If all or part of the aforementioned employees’ compensation is distributed in cash, the resolution will be approved by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, and the distribution shall be submitted to the shareholders’ meeting.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Company is in the growth stage of business cycle and the annual earnings and future cash flow is maintained stable. Considering the Company’ s significant investment plan for the future, the Company applied “ Residual dividend policy” for long-term operating plan and funding needs. The dividend distribution of cash and stock is correlated with annual earning. The Company's stock dividends cannot be higher than 70% of the total dividend.

1) Earnings distribution

The amount of cash dividends of appropriations of the Company’ s 2021 and 2020 earnings was based on the resolutions decided during the meetings of the Board of Directors held on March 30, 2022 and March 30, 2021, respectively.

These earnings are appropriated as follows:

Common stock dividends per share Cash	2021 Allotment (NTD) Amount $ 2.11 793,618	2020 Allotment (NTD) Amount 1.03 387,406
	Allotment (NTD) $ 2.11	Allotment (NTD) 1.03

(iv) Other equity (net of tax)

Balance on January 1, 2022 Profit attributable to non-controlling interests Exchange differences on foreign operations Unrealized (losses) gains on financial assets Changes in non-controlling interest Cash dividends paid to non-controlling interests Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance on June 30, 2022 Balance on January 1, 2021 Profit attributable to non-controlling interests Exchange differences on foreign operations Unrealized (losses) gains on financial assets measured at FVOCI Changes in non-controlling interest Cash dividends paid to non-controlling interests Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance on June 30, 2021	Exchange Differences on Translation of Foreign Financial Statements $ (25,292) - 120,256 - - - - $ 94,964 $ 32,198 - (113,526) - - - - $ (81,328)	Unrealized Gains (Losses) from Financial Assets Measured at FVOCI 78,077 - - (17,766) - - (173) 60,138 93,833 - - (12,202) - - (3,106) 78,525	Non-controlling Interest 3,973,038 123,255 34,381 1 (1,544) (311,854) - 3,817,277 3,975,678 74,811 (30,302) 13 (12,927) (193,725) - 3,813,548	Total 4,025,823 123,255 154,637 (17,765 (1,544 (311,854 (173
				3,972,379
				4,101,709 74,811 (143,828 (12,189 (12,927 (193,725 (3,106
				3,810,745

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(w) Earnings per share

The Group’s earnings per share are calculated as follows:

For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 $ 92,432 376,122 $ 0.25 $ 92,432 (3,950) $ 88,482 376,122 357 43,133 419,612 $ 0.21	2021 57,806	2022 438,713 376,122 1.17 438,713 (9,913) 428,800 376,122 847 43,133 420,102 1.02	2021 231,315

	376,122		376,122
	0.15		0.62
	57,806 -		231,315 -
	57,806		231,315
	376,122 44 -		376,122 457 -
	376,166		376,579
	0.15		0.61

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(x) Revenue from contracts with customers

(i) Disaggregation of revenue

For the Three Months	For the Three Months	Ended June 30,	2022
Metal Manufacturing Segment Real Estate Development Segment $ 138,028 162,453 484,018 - 434,989 - 1,227,548 - 155,233 - 163,164 - 147,593 - $ 2,750,573 162,453 $ 2,732,704 - - 154,819 - - 17,869 7,634 $ 2,750,573 162,453 For the Three Months	Real Estate Development Segment		Total
	162,453 - - - - - -		427,848 484,018 434,989 1,227,548 155,233 163,164 147,593
	162,453		3,040,393
	- 154,819 - 7,634		2,732,704 154,819 82,175 70,695
	162,453		3,040,393
			2021
Metal Manufacturing Segment $ 211,494 435,283 405,058 1,589,071 114,852 164,941 96,330 $ 3,017,029	Real Estate Development Segment	Lifestyle Hospitality Segment 96,203 - - - - - - 96,203	Total
	195,571 - - - - - -		503,268 435,283 405,058 1,589,071 114,852 164,941 96,330
	195,571		3,308,803

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the Three Months	For the Three Months	Ended June 30,	2021
Metal Manufacturing Segment Real Estate Development Segment Lifestyle Hospitality Segment Total $ 3,006,329 - - 3,006,329 - 187,898 - 187,898 - - 57,554 57,554 10,700 7,673 38,649 57,022 $ 3,017,029 195,571 96,203 3,308,803 For the Six Months Ended June 30, 2022	Real Estate Development Segment		Total
	- 187,898 - 7,673		3,006,329 187,898 57,554 57,022
	195,571		3,308,803
Metal Manufacturing Segment $ 297,567 947,247 861,172 2,755,120 274,736 326,484 315,859 $ 5,778,185 $ 5,742,310 - - 35,875 $ 5,778,185	Real Estate Development Segment	Lifestyle Hospitality Segment 291,115 - - - - - - 291,115 - - 181,230 109,885 291,115	Total
	1,566,625 - - - - - -		2,155,307 947,247 861,172 2,755,120 274,736 326,484 315,859
	1,566,625		7,635,925
	- 1,558,991 - 7,634		5,742,310 1,558,991 181,230 153,394
	1,566,625		7,635,925

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

			For the	For the	Six Months Ended June 30,	Six Months Ended June 30,	Six Months Ended June 30,	Six Months Ended June 30,	Six Months Ended June 30,	2021
			Metal		Real Estate			Lifestyle
		Manufacturing		Development				Hospitality
		Segment			Segment			Segment		Total
Major geographic markets:
	Taiwan	$	376,595			576,681			264,012	1,217,288
	United States		878,111			-			-	878,111
	Japan		810,584			-			-	810,584
	China		3,250,224			-			-	3,250,224
	Europe		208,720			-			-	208,720
	South America		354,998			-			-	354,998
	Others		198,591			-			-	198,591
		$	6,077,823			576,681			264,012	6,918,516
Major product/service lines:
	Iron casting hardware	$	6,051,517			-			-	6,051,517
	Construction		-			569,008			-	569,008
	Counter commissions		-			-			150,605	150,605
	Others		26,306				7,673		113,407	147,386
		$	6,077,823			576,681			264,012	6,918,516
)	Contract balances
			June	30,			December		31,	June 30,
			2022					2021		2021
	Notes and accounts receivable		$ 3,576,024					4,074,833		3,890,846
	Less: Loss allowance				(5,203)			(3,764)		(2,972)
	Total		$ 3,570,821					4,071,069		3,887,874
	Contract assets		$ -					-		-
	Contract liabilities–Advance real		$ 4,162,703					3,568,282		3,884,387
	estate receipts
	Contract liabilities–Advance receipts		$		28,671			52,252		48,797

(ii) Contract balances

For the details of accounts receivable and loss allowance, please refer to Note 6(c).

The amount of revenue recognized for the six months ended June 30, 2022 and 2021, that were included in the contract liabilities balance at the beginning of the period were $345,589 thousand and $75,979 thousand, respectively.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The major change in the balance of contract assets and contract liabilities is the difference between the time frame in the performance obligation to be satisfied by transferring ownership to the customer and the payment to be received.

(y) Employees' compensation and remuneration of directors

Based on the amended Company’ s Articles of Incorporation, employees’ compensation is appropriated at the rate of no less than 2.5% and remuneration of directors is appropriated no more than 2.5% of profit before tax, respectively. Prior years’ accumulated deficit is first offset before any appropriation of profit, then calculate the employees’ compensation and remuneration of directors by the appropriate ratio stipulated in the bylaws. The employees to whom the Company distributes employees’ compensation, or issued new restricted employee shares, employee stock option certificates, preemptive right of new shares, and transfer of shares include the employees of subsidiaries which are qualified with the requirements stipulated by the Board of Directors.

For the three months and six months ended June 30, 2022 and 2021, appropriated employees’ compensation by $332 thousand, $1,485 thousand, $11,386 thousand and $6,869 thousand, respectively, and appropriated remuneration of directors by $297 thousand, $1,326 thousand, $10,166 thousand and $6,133 thousand, respectively, which were estimated on the basis of the Company’ s net profit before tax, excluding employees’ compensation and the remuneration of directors of each period, then multiplied by the percentage of remuneration of employees and directors as specified in the Company’s Articles of Incorporation. Such amounts were recognized as operating cost or operating expense for the period. The number of shares to be distributed were calculated based on the closing price of the Company’ s ordinary shares, one day prior to Board of Directors meeting. Management is expecting that the differences, if any, between the actual distributed amounts and estimated amounts will be treated as changes in accounting estimates and charged to profit or loss.

For the years ended December 31, 2021 and 2020, appropriated employees’ compensation by $34,016 thousand and $16,606 thousand, respectively, and appropriated remuneration of directors by $30,371 thousand and $14,826 thousand, respectively. There were no significant difference between employees' compensation and remuneration of directors approved by the Board of Directors meeting and the estimated amount.

Information on the employees' compensation and remuneration of directors approved by the Board of Directors meeting is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(z) Non-operating income and expenses

(i) Interest income

The information on interest income is listed as follows:

For the Three Months Ended June 30 2022 2021 $ 4,656 8,101 3,512 3,467 $ 8,168 11,568	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 $ 4,656 3,512 $ 8,168	2022 8,943 7,016 15,959	2021
		22,118 6,914
		29,032

(ii) Other income

The information on other income is listed as follows:

For the Three Months Ended June 30 2022 2021 $ 16,341 13,512 5,144 4,647 18,797 24,452 $ 40,282 42,611	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 $ 16,341 5,144 18,797 $ 40,282	2022 16,341 9,896 36,853 63,090	2021
		13,512 9,934 41,326
		64,772

(iii) Other gains and losses

The information on other gains and losses is listed as follows:

Losses on disposal of property, plant and equipment Foreign exchange gains (losses) Losses on financial assets at FVTPL Losses on disposal of investment Other losses Net amount of other gains and losses	For the Three Months Ended June 30 2022 2021 $ (2,427) (3,309) 28,245 (8,634) (2,311) - - - (187) (2,180) $ 23,320 (14,123)	For the Six Months Ended June 30 2022 2021 (4,623) (3,532) 50,639 (13,730) (2,641) - - (5,013) (429) (2,627) 42,946 (24,902)
	2022 $ (2,427) 28,245 (2,311) - (187) $ 23,320	2022 (4,623) 50,639 (2,641) - (429) 42,946

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Finance costs

The information on interest expense is listed as follows:

For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 $ 63,725 5,831 (7,827) 408 $ 62,137	2021	2022 116,856 11,782 (15,692) 840 113,786	2021
	55,626 7,611 - 426		105,790 12,516 - 851
	63,663		119,157

For the three months and six months ended June 30, 2022 and 2021, the capitalized interest expense amounted to $15,678 thousand, $12,097 thousand, $28,554 thousand and $26,349 thousand, respectively.

(aa) Financial instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to Note 6(aa) of the consolidated financial statements for the year ended December 31, 2021.

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets and contract assets represent the maximum amount exposed to credit risk.

2) Concentration of credit risk

Since the Group had a large number of unrelated customers, the concentration of the credit risk is limited.

3) Credit risks of receivables and debt securities

For the information regarding credit risk exposure of notes and accounts receivables, please refer to Note 6(c). Other financial assets at amortized cost include other receivables and time deposits.

All of these financial assets mentioned above are considered to be low risk, therefore, the impairment provision recognized during the period was limited to 12 months expected losses. For the allowance of impairment on financial assets for the six months ended June 30, 2022 and 2021, please refer to Note 6(c).

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments, but not the impact of netting agreements.

Contractual Cash Flow June 30, 2022 Non-derivative financial liabilities Bank borrowings $ 19,151,494 Bonds payable 1,500,000 Lease liabilities 1,975,162 Notes and accounts payables (including related parties) 2,888,941 Other payables (including related parties) 2,186,773 $ 27,702,370 December 31, 2021 Non-derivative financial liabilities Bank borrowings $ 21,721,271 Lease liabilities 2,055,335 Notes and accounts payables (including related parties) 3,421,535 Other payables (including related parties) 1,961,919 $ 29,160,060 June 30, 2021 Non-derivative financial liabilities Bank borrowings $ 21,452,493 Lease liabilities 2,150,583 Notes and accounts payables (including related parties) 2,754,607 Other payables (including related parties) 2,373,523 $ 28,731,206	Within 6 Months 6,089,687 - 107,462 2,888,941 2,186,773 11,272,863 4,783,351 101,795 3,421,535 1,961,919 10,268,600 4,772,997 103,251 2,754,607 2,373,523 10,004,378	6-12 Months 2,599,371 - 102,932 - - 2,702,303 2,770,371 99,851 - - 2,870,222 2,712,075 100,246 - - 2,812,321	1-2 Years 7,070,188 - 208,823 - - 7,279,011 9,520,326 199,141 - - 9,719,467 9,343,814 197,176 - - 9,540,990	2-5 Years 3,392,248 1,500,000 607,570 - - 5,499,818 4,647,223 606,370 - - 5,253,593 4,596,211 602,039 - - 5,198,250	Over 5 Years
					- - 948,375 - -
					948,375
					- 1,048,178 - -
					1,048,178
					27,396 1,147,871 - -
					1,175,267

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

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Currency risk

Information on the significant exposure to foreign currency risk of the Group is as follows:

June 30, 2022 Foreign Currency Exchange Rate NTD Financial assets Monetary items USD:NTD $ 17,377 29.72 516,434 USD:CNY 137,845 6.69 4,096,740 USD:JPY 1,081 136.21 32,117 EUR:NTD 1,625 31.05 50,470 EUR:CNY 3,003 6.99 93,241 JPY:NTD 173,593 0.22 37,878 JPY:CNY 169,828 0.05 37,056 HKD:USD 2,985 0.13 11,311 Financial liabilities Monetary items USD:CNY 150,377 6.69 4,469,190 EUR:CNY 2,695 6.99 83,693 HKD:USD 263,784 0.13 999,741 JPY:CNY 23,744 0.05 5,181	December 31, 2021 Foreign Currency Exchange Rate NTD 20,817 27.68 576,214 135,034 6.38 3,737,747 836 115.09 23,140 1,096 31.32 34,328 3,444 7.22 107,860 164,138 0.24 39,475 174,839 0.06 42,049 3,729 0.13 13,239 149,967 6.38 4,151,073 2,880 7.22 90,192 318,288 0.13 1,129,922 61,021 0.06 14,676	June 30, 2021	June 30, 2021
	Foreign Currency 20,817 135,034 836 1,096 3,444 164,138 174,839 3,729 149,967 2,880 318,288 61,021	Foreign Currency 21,356 125,991 1,379 1,671 1,793 71,386 70,552 3,642 150,238 1,442 335,040 61,442	Exchange Rate NTD 27.86 594,973 6.46 3,510,120 110.51 38,432 33.15 55,394 7.69 59,439 0.25 17,996 0.06 17,786 0.13 13,076 6.46 4,185,637 7.69 47,792 0.13 1,202,794 0.058 15,490

1) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, borrowings, accounts payable and other payables that are denominated in foreign currency. A 1% of appreciation or depreciation of each major foreign currency against the Group’ s functional currency as of June 30, 2022 and 2021 would have increased (decreased) the after-tax net income for the three months and six months ended June 30, 2022 and 2021 by $1,746 thousand, $2,130 thousand, $2,730 thousand and $4,578 thousand, respectively. The analysis assumes that all other variables remain constant and was performed on the same basis for both periods.

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. For the three months and six months ended June 30, 2022 and 2021, the foreign exchange losses, including both realized and unrealized, amounted to $28,245 thousand, $(8,634) thousand, $50,639 thousand and $(13,730) thousand, respectively.

(iv) Interest rate risk

The interest risk exposure from financial assets and liabilities has been disclosed in the note of liquidity risk management.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following sensitivity analysis is based on the risk exposure to interest rates on the derivative and non-derivative financial instruments at the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities are outstanding for the whole year at the reporting date.

If the interest rate increases or decreases by 1% the Group’s net income will increase /decrease by $22,727 thousand, $32,674 thousand, $43,833 thousand and $54,432 thousand for the three months and six months ended June 30, 2022 and 2021, respectively, assuming all other variable factors remain constant. This is mainly due to the Group’ s variable rate bank borrowings.

(v) Other market price risk

If the equity price changes, the impact of equity price change to other comprehensive income will be as follows, assuming the analysis were based on the same basis, and other variables considered in the analysis remain the same:

For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 15,234 (693) $ (15,234) 693	2021
Other Comprehensive Income (net of tax) $ 15,234 $ (15,234)	Other Comprehensive Income (net of tax) 21,656 (21,656)	Net Income (Loss) (net of tax)
		-
		-

(vi) Fair value of financial instruments

1) Fair value hierarchy

The Group measured its financial assets and liabilities at FVTPL, and financial assets at FVOCI on a recurring basis. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy are as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

	June 30, 2022	June 30, 2022	June 30, 2022
Book Value $ 152,342 $ 6,933 $ 9,731,291 $ 27,198,054		Fair Value
	Level 1 - - - -	Level 2 - - - -	Level 3 152,342 6,933 - -	Total
				152,342
				6,933
				-
				-

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	December 31, 2021	December 31, 2021	December 31, 2021
Book Value $ 215,295 $ 12,134,805 $ 28,463,417		Fair Value
	Level 1 Level 2 36,901 - - - - - June 30, 2021		Level 3 178,394 - -	Total
				215,295
				-
				-

Book Value $ 216,561 $ 10,405,518 $ 28,121,053		Fair Value
	Level 1 35,297 - -	Level 2 - - -	Level 3 181,264 - -	Total
				216,561
				-
				-

2) Valuation techniques for financial instruments measured at fair value

Financial instruments traded in active markets are based on quoted market prices. Market prices quoted from main exchanges and over-the-counter are the basis of fair value of equity instruments and credit instrument traded in active markets.

If the quoted price of a financial instrument can be obtained in time and often from exchanges, brokers, underwriters, industrial union, pricing institute, or authorities and such price can reflect those actual trading and frequently happen in the market, then the financial instrument is considered to have a quoted price in an active market. If a financial instrument does not accord with the definition aforementioned, then it is considered to be without a quoted price in an active market. In general, market with low trading volume or high bid-ask spreads is an indication of non-active market.

If the financial instruments held by the Group have active market, the measurements of fair value are categorized as follows:

The listed redeemable bonds, listed stocks, drafts and bonds are recognized as financial assets and liabilities traded in active markets by the standards and nature. The fair value is measured at the market quoted price.

Measurements of fair value of financial instruments without an active market are based on valuation technique or quoted price from a competitor. Fair value, measured by using valuation technique that can be extrapolated from either similar financial instruments or discounted cash flow method or other valuation techniques, including models, is calculated based on available market data at the reporting date.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

If the financial instruments held by the Group have no active market, the measurements of fair value are categorized as follows:

Equity instruments without quoted price: The fair value is measured at discounted cash flow model. The assumption is discounted investees’ expected future cash flows by using the discounting rate which reflects the time value of money and the return of the investment.
3) Transfers between Level 1 and Level 2

There were no transfers in either direction for the six months ended June 30, 2022 and 2021.

4) Reconciliation of Level 3 instruments

Reconciliation of Level 3 instruments
		Non-current Financial
		Assets at FVOCI
		Equity Instrument
		without Quoted Price
Balance on January 1, 2022	$	215,295
Disposals		(37,190)
Total gains or losses
Recognized as other comprehensive income		(17,763)
Capital reduction		(8,000)
Balance on June 30, 2022	$	152,342
Balance on January 1, 2021	$	194,824
Total gains or losses
Recognized as other comprehensive income		(13,560)
Balance on June 30, 2021	$	181,264

The total gains or losses is listed under “unrealized gains (losses) on financial assets at FVOCI” . The information regarding assets held as of June 30, 2022 and 2021 is as follows:

Total gains or losses Recognized as other comprehensive income (which is listed under "unrealized losses on financial assets of FVOCI")	For the Three Months Ended June 30 2022 2021 $ (11,967) (13,560)	For the Six Months Ended June 30 2022 2021 (17,763) (13,560)
	2022 $ (11,967)	2022 (17,763)

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s major financial instruments that use Level 3 inputs to measure fair value is “financial assets measured at FVOCI – equity investments”.

Most of the Group’s financial assets in Level 3 have only one significant unobservable input, while its equity investments without an active market have more than one significant unobservable inputs. The significant unobservable inputs of equity investments without an active market are individually independent, and there is no correlation between them.

Quantified information regarding significant unobservable inputs are as follows:

Item	Valuation Technique Dividend discount model	Significant Unobservable Inputs Inter-relationship between Significant Unobservable Inputs and Fair Value Measurement ‧Average expected future dividend income of 5 years (As of June 30, 2022,December 31 and June 30, 2021 were $251~23,510 thousand, $14~26,213 thousand and $18~26,213 thousand, respectively.) ‧The estimated fair value would increase, if the 5- year average expected future dividend income is increased. ‧Weighted average capital cost (As of June 30, 2022,December 31 and June 30, 2021, were 4.29%,3.48% and 3.75%, respectively.) ‧Discounting rate without market liquidity (As of June 30, 2022, December 31 and June 30, 2021, were all 15%) ‧The estimated fair value would decrease, if the weighted average capital cost is increased. ‧The estimated fair value would decrease, if the discounting rate without market liquidity is increased.
Financial assets at FVOCI equity investments without active market

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

6) Fair value measurements in Level 3-sensitivity analysis of reasonably possible alternative assumptions

The Group’ s measurement on the fair value of financial instruments is deemed reasonable despite different valuation models or assumptions may lead to different results. For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

June 30, 2022 Financial assets at FVOCI Equity investments without an active market December 31, 2021 Financial assets at FVOCI Equity investments without an active market June 30, 2021 Financial assets at FVOCI Equity investments without an active market	Inputs % 4.29 % 3.48 % 3.75	Fluctuation in Inputs 1% 1% 1%	Other Comprehensive Income Favorable Unfavorable 5,580 (5,302) 6,671 (6,335) 6,779 (6,437)

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(ab) Financial risk management

There were no significant changes in the Group’ s financial risk management and policies as disclosed in Note 6(ab) of the consolidated financial statements for the year ended December 31, 2021.

(ac) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2021. Also, management believes that there were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2021. Please refer to Note 6 (ac) of the consolidated financial statements for the year ended December 31, 2021 for further details.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ad) Investing and financing activities not affecting the current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended June 30, 2022 and 2021, were as follows:

Reconciliation of assets arising from investing activities were as follows:

Other non-current assets Other non-current assets	January 1, 2021 $ 2,106,431 January 1, 2020 $ 907,794	Cash flows 705,396 Cash flows 771,717	Non-cash changes Reclassification (64,528) Non-cash changes Reclassification (30,736)	June 30, 2022
				2,747,299
				June 30, 2021
				1,648,775

(7) Related-party transactions:

(a) The ultimate parent company

The company is both the parent company and the ultimate controlling party of the Group.

(b) Names and relationship with related parties

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

Name of Related Party Relationship with the Group The Splendor Hospitality International Co., Ltd. Joint ventures (The Splendor Hospitality) CMAAN Health Co., Ltd. (CMAAN Health) Joint ventures Hua-Pu Development Co., Ltd. (Hua-Pu Development) Joint ventures Amida Trustlink Assets Management Co., Ltd. Associates (Amida Trustlink Assets) Keng-Hsin Urban Renewal Co., Ltd. Associate of subsidiaries (Keng-Hsin Urban Renewal) ADVANCISION (CAYMAN) Industries Co., Ltd. Associate of subsidiaries (ADVANCISION (CAYMAN)) Beyond Fitness Co., Ltd. (Beyond Fitness) Associate of subsidiaries Fuzhou Aprec Mechanical and Electrical Co., Ltd. Subsidiaries of subsidiaries' associates (Fuzhou Aprec)

Advancision Corporation (Advancision) Chain-Yuan Investment Co., Ltd. (Chain-Yuan Investment) San Lien Technology Corp. (San Lien Technology) Kemitek Industrial Corp. (Kemitek Industrial) CMP PUJEN Foundation for Arts and Culture (Foundation) San Lien Educational Foundation (San Lien Foundation)

Subsidiaries of subsidiaries' associates Other related parties Other related parties Other related parties Other related parties Other related parties

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Related Party Relationship with the Group Hao Bao Investment Co., Ltd. (Hao Bao Investment) Other related parties Rui Hua Investment Co., Ltd. (Rui Hua Investment) Other related parties LEESCO Development Co. Ltd. (LEESCO Development) Other related parties Gee Lien Resource Development Corp. (Gee Lien Resource) Other related parties Yi-Shi Investment Corporation (Yi-Shi) Other related parties Mr. Ming Shiann, Ho Other related parties Mr.Dai Jun, Lin Other related parties Mr. Ting Fung, Lin Key Management

(c) Significant transactions with related parties
(i) Sales to related parties
- 1) The amounts of significant sales transactions and outstanding balance between the Group and related parties are as follows:

Sales For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ 1,505 1,037 4,235 4,750 - - 279 342 778 119 1,174 205 $ 2,283 1,156 5,688 5,297	Notes and Accounts Receivables June 30, 2022 December 31, 2021 June 30, 2021 4,853 2,690 2,986 - - - 270 31 108 5,123 2,721 3,094	Notes and Accounts Receivables June 30, 2022 December 31, 2021 June 30, 2021 4,853 2,690 2,986 - - - 270 31 108 5,123 2,721 3,094
For the Three Months Ended June 30 2022 2021 $ 1,505 1,037 - - 778 119 $ 2,283 1,156	December 31, 2021 2,690 - 31 2,721	June 30, 2021
2022
$ 1,505 - 778 $ 2,283		2,986 - 108
		3,094

The sales between the Group and related parties approximated the market price.

2) The amounts of significant real estate sales transactions and outstanding balance between the Group and related parties are as follows:

Revenue recognized For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ - - - -	Revenue recognized For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ - - - -	Advance real estate receipts June 30, 2022 December 31, 2021 June 30, 2021 73,601 59,275 51,216	Advance real estate receipts June 30, 2022 December 31, 2021 June 30, 2021 73,601 59,275 51,216
For the Three Months Ended June 30 2022 2021 $ - -		December 31, 2021 59,275	June 30, 2021
2022	2022 -
$ -			51,216

As of June 30, 2022 and 2021, the total contract price of real estate in contract with related parties mentioned above is $302,920 thousand (tax included) and $253,190 thousand (tax included), repectively. The terms and pricing of sales transactions with related parties were not significantly different from those with the third parties.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Purchases from related parties

The amounts of significant purchases transactions and outstanding balances between the Group and related parties are as follows:

Purchases For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ 23,876 31,754 44,435 64,135 6 - 8 - - - 17 - $ 23,882 31,754 44,460 64,135	Purchases For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ 23,876 31,754 44,435 64,135 6 - 8 - - - 17 - $ 23,882 31,754 44,460 64,135	and Accounts Payable	and Accounts Payable
For the Three Months Ended June 30 2022 2021 $ 23,876 31,754 6 - - - $ 23,882 31,754		December 31, 2021 26,129 - 726 26,855	June 30, 2021
2022
$ 23,876 6 - $ 23,882	64,135 - -		28,663 - 695
	64,135		29,358

The purchases mentioned above could not compare to the market because the Group did not purchase the same items from non-related parties. The payment terms with related parties are not significantly different from those with third parties.

(iii) Leases

1) Rental expenses

The information on office leased by the Group is as follows:

Rental Expenses	Rental Expenses	Rental Expenses	Rental Expenses	Rental Expenses
For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ - 30 - 60 608 608 1,216 1,216 136 149 296 276 $ 744 787 1,512 1,552 Guarantee Deposit Paid (Recognized under other non-current financial assets) June 30, 2022 December 31, 2021 June 30, 2021 $ 10 10 - 443 443 443 $ 453 453 443			For the Six Months Ended June 30
				2021
$ $				60 1,216 276
				1,552

	June 30, 2022 $ 10 443 $ 453	December 31, 2021 10 443 453

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Rental revenues

The information on office leased to related parties is as follows:

Rental Revenues For the Six Months Ended June 30 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 Associates $ 66 66 131 131 Other related parties 219 244 540 565 $ 285 310 671 696 Guarantee Deposit Received (Recognized under other non-current liabilities) June 30, 2022 December 31, 2021 June 30, 2021 Associates $ 300 300 300	Rental Revenues	Rental Revenues	Rental Revenues
	For the Six Months Ended June 30
			For the Six Months Ended June 30

(iv) Providing services to related party

The information on providing management consulting and application services to related parties is as follows:

Service Revenues For the Six Months Ended June 30	Service Revenues For the Six Months Ended June 30	Service Revenues For the Six Months Ended June 30	Service Revenues For the Six Months Ended June 30	Service Revenues For the Six Months Ended June 30
			For the Six Months Ended June 30
2022				2021 150 2,847 2,997 June 30, 2021 796,845
	75 1,163 1,238

	June 30, 2022 $ 796,845	December 31, 2021 796,845

(v) Non-performing receivables

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Joint ventures: The Splendor Hospitality		Costs of Claims
	June 30, 2022 $ 575,000	December 31, 2021 575,000	June 30, 2021
			575,000

The claims mentioned above was recognized in other non-current financial assets, please refer to Note 6(l).

(vi) Guarantees and endorsements

The information on guarantees and endorsements of financing quotas and actual usage is as follows:

Joint ventures: The Splendor Hospitality Others Joint ventures: The Splendor Hospitality Others	Borrowing Limits June 30, 2022 December 31, 2021 June 30, 2021 $ 2,000,000 1,900,000 2,000,000 22,500 45,680 45,680 $ 2,022,500 1,945,680 2,045,680 Actual Usage Amount	Borrowing Limits June 30, 2022 December 31, 2021 June 30, 2021 $ 2,000,000 1,900,000 2,000,000 22,500 45,680 45,680 $ 2,022,500 1,945,680 2,045,680 Actual Usage Amount
			June 30, 2021
			2,000,000 45,680
			2,045,680
		December 31, 2021 1,630,000 25,456 1,655,456	June 30, 2021
			1,640,000 45,680
			1,685,680

(vii) Guarantee for bank borrowings

The Group didn’t pay any guarantee fee to related parties as a guarantor.

(viii) Property transaction

1) The information on acquisitions of assets (including capitalized costs from development projects, which was recognized under other non-current assets) is as follows:

For the Three Months Ended June 30 2022 2021 $ - 172	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 $ -	2022 -	2021
		172

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The information on construction in retention for Taichung development projects to be paid by the Group is as follows:

Other related parties	June 30, 2022 $ 344	December 31, 2021 344	June 30, 2021 336

(ix) Other transactions

1) The information on donation to related parties is as follows:

Donation	Donation	Donation
For the Three Months Ended June 30 2022 2021 $ 25 2,560	For the Six Months Ended June 30
2022 $ 25	2022 25	2021
		2,560

2) The information on other services or transactions provided by related parties is as follows:

Other Expenses	Other Expenses	Other Expenses
For the Three Months Ended June 30 2022 2021 $ - 1 9 9 - 42 $ 9 52	For the Six Months Ended June 30
2022 $ - 9 - $ 9	2022 1 190 - 191	2021
		1 9 42
		52

3) The amounts on revenues from providing guarantees and endorsements to related parties is as follows:

Interest Revenues	Interest Revenues	Interest Revenues
For the Three Months Ended June 30 2022 2021 $ 3,489 3,383 23 83 $ 3,512 3,466	For the Six Months Ended June 30
2022 $ 3,489 23 $ 3,512	2022 6,929 87 7,016	2021
		6,748 165
		6,913

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Other receivables and advance payments from related parties

Associates: Keng-Hsin Urban Renewal Others Joint ventures Other related parties	Other Receivables (including advance payments) June 30, 2022 December 31, 2021 June 30, 2021 $ 9,570 24,332 45,836 49 95 373 168 232 230 19 993 16 $ 9,806 25,652 46,455	Other Receivables (including advance payments) June 30, 2022 December 31, 2021 June 30, 2021 $ 9,570 24,332 45,836 49 95 373 168 232 230 19 993 16 $ 9,806 25,652 46,455	Other Receivables (including advance payments) June 30, 2022 December 31, 2021 June 30, 2021 $ 9,570 24,332 45,836 49 95 373 168 232 230 19 993 16 $ 9,806 25,652 46,455
		December 31, 2021 24,332 95 232 993 25,652	June 30, 2021 45,836 373 230 16 46,455

5) Other payables and advance receipts from related parties

Other Payables (including advance receipts)	Other Payables (including advance receipts)	Other Payables (including advance receipts)
June 30, 2022 $ - - 5 175 98 $ 278	December 31, 2021 29,294 - 450 203 56 30,003	June 30, 2021
		197,262 42 39 39 -
		197,382

(d) Key management transactions

The compensation of key management is as follows:

For the Three Months Ended June 30 2022 2021 $ 27,886 9,503 2,618 469 $ 30,504 9,972	For the Six Months Ended June 30	For the Six Months Ended June 30
2022 $ 27,886 2,618 $ 30,504	2022 72,677 3,046 75,723	2021
		56,035 946
		56,981

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(8) Pledged assets

The information on pledged assets' carrying value is as follows:

Pledged Assets	Object	June 30, 2022 $ 1,424,715 293,450 596,238 7,508,356 6,656,860 7,820 32,986 959,327 $ 17,479,752	December 31, 2021 1,424,715 304,118 634,883 7,246,157 5,751,894 234,639 51,429 1,244,785 16,892,620	June 30, 2021 1,424,638 311,786 636,018 7,046,459 5,788,812 3,586,849 67,279 979,019
Land (including other non- current assets) Buildings Investment properties Inventories—Land held for development Inventories—Construction in progress Inventories—Buildings and land held for sale Other current financial assets 〃	The credit limits of long-term and short-term bank borrowings 〃〃〃〃 The credit limits of short-term borrowings Bank acceptance bills Trusts
				19,840,860

(9) Significant commitments and contingencies

(a) The Group’s unrecognized contractual commitments are as follows:
(i) The unused standby letters of credit for purchasing machinery and equipment and raw material are as follows:

are as follows:
Unused standby letters of credit	June 30, 2022 $ 955	December 31, 2021 3,494	June 30, 2021
			1,288

(ii) The unrecognized contractual commitment from contracts of buildings for future operational use, selling and purchasing of equipment, decorating constructions, and engineering constructions entered into by the Group is as follows:

Total contract price Total amounts paid under contracts (Note)	June 30, 2022 $ 15,533,270 $ 9,960,293	December 31, 2021 12,660,047 6,679,296	June 30, 2021
			12,363,682
			5,471,020

Note: Recognized in “prepayments for equipment and construction in progress”, “other noncurrent assets”, “inventory- construction in progress” and “administrative expenses”.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) The Group’s total selling price for presale construction projects is as follows:

June 30, 2022 December 31, 2021 Total contract price $ 17,360,543 16,273,136 Total amounts received under contracts (recognized under current contract liabilities) $ 4,162,703 3,568,282 (iv) The Group’s purchase contracts of building capacity is as follows: June 30, 2022 December 31, 2021 Total contract price $ 168,748 200,944 Total amounts paid under contracts (recognized under prepayments) $ 84,374 116,570 (v) The Group’s security deposits paid to landlords for joint construction projects June 30, 2022 December 31, 2021 Security deposits of joint construction projects (recognized under other current and non-current financial assets) $ 307,747 348,617	June 30, 2021
	18,761,440
	3,884,387
	June 30, 2021
	200,944
	116,570
	is as follows: June 30, 2021
	380,925

(vi) The Group’s security deposits for renting real estates is as follows: June 30, 2022 December 31, 2021 Security deposits (recognized under other current and non-current financial assets) $ 99,282 99,282	June 30, 2021
	99,289

The Group’s guarantee notes received	for	sell and construction is as follows:	sell and construction is as follows:
		June 30,	December 31,	June 30,
		2022	2021	2021
Security deposits(recognized under	$	-	2,520	-
other non-current liabilities)

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(viii) The Group’s unrecognized contractual commitments for purchasing land is as follows:

Total contract price Total amounts paid under contracts (recognized under inventories— prepayments for land)	June 30, 2022 $ 445,406 $ 427,896	December 31, 2021 348,930 239,924	June 30, 2021
			283,842
			166,995

(ix) 1) The Group and The Presbyterian Church in Taiwan entered into an real estate leasing contract, with the contract term of 40 years, commencing the day after the signing date, September 30, 2016. For the development of the leasing real estates, the Group agreed to pay development royalty amounting to $126,000 thousand. As of June 30, 2022 and 2021, the accumulated royalty payments amounted to $126,000 thousand, respectively, which was recognized under right-of-use assets.
- 2) The Group leased a parcel of land to construct several buildings for its shopping malls and hotels. The Group agreed that the ownership of the buildings would still be under the title deed of the Presbyterian Church in Taiwan even after the completion of the construction. Upon maturity of the lease period, the Group shall dismantle the buildings and related facilities, and return the land to the Presbyterian Church in Taiwan.
- 3) The security deposits paid by the Group for land development and leased land and buildings for operating use amounted to $97,092 thousand, as of June 30, 2022 and 2021.
(x) The Group entered into various services agreement with InterContinental Hotels Group for its hotel operation, including planning, constructing and building, as well as during the preopening phase, and the period from the pre-opening phase to the opening day and fifteen years afterwards. According to the contract, the fees shall either be paid based on the services rendered, or be calculated in accordance with certain ratio of the gross revenve for the fiscal year or each accounting period.
(b) Contingencies
(i) Please refer to Note 7 for the Group’s guarantees and endorsements for related parties' loans as of June 30, 2022 and 2021.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Contingencies for the Company and its subsidiary, Sunflower Investment, regarding the stages of Daguangsan tax petition for real estate transaction and non-performing receivables is as follows:

Litigant Issue The Filing a petition for the Company administrative penalty of the value-added tax in the Daguangsan real estate transaction which was approved by National Taxation Bureau of Taipei Sunflower Since 2011, Sunflower Investment Investment had received several administrative penalties approved by National Tax Bureau of Taipei which arose from the withholding tax, valueadded tax, enterprise income tax and undistributed earning tax of the Daguangsan nonperforming receivables. Sunflower Investment has sought administrative remedy for the aforementioned verdict.

Current Status

National Taxation Bureau of Taipei has approved the additional value-added tax and the regarding penalty amounting to $38,497 thousand, which the Company had paid $25,665 thousand in 2012. The Company was dissatisfied with the verdict from the original authority, which has filed the administrative petition. According to the ruling of the Taipei High Administrative Court, the lawsuit has now been suspended.

National Tax Bureau of Taipei reduced the approved value-added tax and the regarding penalties to the total amount of $564,452 thousand on June 6, 2014, which arose from Daguangsan nonperforming receivables. The aforementioned amount had been paid in the amount of $46,174 thousand. Sunflower Investment was dissatisfied with the verdicts and filed the petitions of the review, appeal and administrative litigation, which are being processed by the authority. The administrative litigation was filed against Taipei High Administrative Court on December 24, 2013. In accordance with the Administrative Regulation Article 177, Section 1 and 2, Taipei High Administrative Court suspended the proceeding of the lawsuit on July 25, 2016. Considering the risk of losing the lawsuit in the future, Sunflower Investment assessed the aforementioned possible losses based on the conservative principle and estimate the contingent liabilities. For details of regarding contingencies, please refer to Note 6(r).

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(12) Other:

(a) The Securities and Futures Investors Protection Center (SFIPC) filed a criminal incidental civil action on behalf of the Company against the former chairman of the Company, Mr. Ming Shiann, Ho. The appeal was handed back over to the High Court for reconsideration on August 22, 2019, which is in trial in the Tainan Branch of Taiwan High Court.
(b) The SFIPC filed a lawsuit against the Company, its directors and supervisors, and certain employees of the Group. On January 2, 2020, Taiwan High Court dismissed the appeal filed by the SFIPC for the second time. On February 5, 2020, the SFIPC filed an appeal to the Supreme Court against the aforementioned conviction, which is now in trial in the Supreme court.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

By function By item		For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30
		2022		2021
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	172,227	148,763	320,990	175,889	138,330	314,219
Labor and health insurance	15,658	11,693	27,351	14,805	12,055	26,860
Pension	12,414	8,770	21,184	11,254	8,232	19,486
Others	13,728	17,661	31,389	17,161	10,744	27,905
Depreciation	182,317	79,781	262,098	150,688	73,751	224,439
Amortization	328	1,020	1,348	374	764	1,138

By function By item		For the Six Months Ended June 30
		2022		2021
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	352,903	323,320	676,223	351,926	294,544	646,470
Labor and health insurance	31,121	25,301	56,422	29,475	24,078	53,553
Pension	24,696	17,412	42,108	22,477	16,896	39,373
Others	29,773	28,797	58,570	33,936	22,725	56,661
Depreciation	362,737	155,505	518,242	331,964	147,170	479,134
Amortization	655	2,123	2,778	813	1,553	2,366

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions for the six months ended June 30, 2022, required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

(In Thousands of NTD)

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance During the Period	Ending Balance (Note 1)	Actual Borrowing Amount	Interest Rate	Nature for Financing (Note 2)	Transaction Amount for Business	Reasons for Short-term Financing	Allowance for Doubtful Accounts	Collateral	Collateral	Financing Limit for Each Borrower (Note 3)	Aggregate Financing Limit (Note 4)
													Item	Value
0	The Company	The Hotel National	Accounts receivable due from related parties	Yes	53,000	-	-	1.15%	2	-	Operation requirements	-		-	3,771,689	5,028,919
0	The Company	UEA	Accounts receivable due from related parties	Yes	59,440	59,440	-	1.28%	2	-	Operation requirements	-		-	3,771,689	5,028,919
1	Tianjin CMT	Suzhou CMB	Accounts receivable due from related parties	Yes	112,750	111,000	111,000	0.75%	2	-	Operation requirements	-		-	329,433	439,245
1	Tianjin CMT	CMH	Accounts receivable due from related parties	Yes	315,700	310,800	310,800	0.75%	2	-	Operation requirements	-		-	329,433	439,245
2	Suzhou CMS	CMH	Accounts receivable due from related parties	Yes	676,500	666,000	666,000	0.75%	2	-	Operation requirements	-		-	1,309,752	1,746,336
3	CMAI	Pilot	Accounts receivable due from related parties	Yes	41,608	41,608	41,608	0.17%	2	-	Operation requirements	-	Land, buildings and improvement	69,276	42,842	57,122

Note 1: Balance of loan as of the reporting date was within the credit limits approved by the Board of Directors.

Note 2: 1. For business transactions.

For the necessity of short-term financing.

Note 3: The lender’s total amount available for lending shall not exceed 30% of its net worth.

Note 4: The lender’s total amount available for lending shall not exceed 40% of its net worth.

Note 5: Intra-group transactions have been eliminated in the consolidated financial statements.

(ii) Guarantees and endorsements for other parties:

										(In Thousands of NTD)	(In Thousands of NTD)	(In Thousands of NTD)	(In Thousands of NTD)
No.	Name of Guarantor/ Endorse	Counter-party of Guarantee and Endorsement		Limitation on Amount of Guarantees and Endorsements for a Specific Enterprise (Note 4)	Highest Balance for Guarantees and Endorsements During the Period	Ending Balance (Note 2)	Actual Borrowing Amount	Property Pledged for Guarantees and Endorsements	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amount for Guarantees and Endorsements (Note 5)	Parent Company Endorsements/ Guarantees to Third Parties on Behalf of Subsidiary (Note 3)	Subsidiary Endorsements/ Guarantees to Third Parties on Behalf of Parent Company (Note 3)	Endorsements/ Guarantees to Third Parties on Behalf of Companies in Mainland China (Note 3)
		Name	Relationship with the Company (Note 1)
0	The Company	Sunflower Investment	1	5,028,919	110,000	110,000	-	-	% 0.87	6,286,149	Y	N	N
0	The Company	The Hotel National	1	5,028,919	100,000	100,000	10,000	-	% 0.80	6,286,149	Y	N	N
0	The Company	Shangrila Tourism	1	5,028,919	702,500	702,500	387,500	-	% 5.59	6,286,149	Y	N	N

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

No.	Name of Guarantor/ Endorse	Counter-party of Guarantee and Endorsement	Counter-party of Guarantee and Endorsement	Limitation on Amount of Guarantees and Endorsements for a Specific Enterprise (Note 4)	Highest Balance for Guarantees and Endorsements During the Period	Ending Balance (Note 2)	Actual Borrowing Amount	Property Pledged for Guarantees and Endorsements	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amount for Guarantees and Endorsements (Note 5)	Parent Company Endorsements/ Guarantees to Third Parties on Behalf of Subsidiary (Note 3)	Subsidiary Endorsements/ Guarantees to Third Parties on Behalf of Parent Company (Note 3)	Endorsements/ Guarantees to Third Parties on Behalf of Companies in Mainland China (Note 3)
		Name	Relationship with the Company (Note 1)
0	The Company	The Splendor Hospitality	2	5,028,919	2,150,000	2,000,000	1,510,000	-	% 15.91	6,286,149	N	N	N
0	The Company	CMAAN Health	2	5,028,919	45,680	22,500	6,535	-	% 0.18	6,286,149	N	N	N
1	CMI	UEA	3	3,926,522	1,196,763	999,741	999,741	-	% 10.18	4,908,153	N	N	N

Note 1: 1.The Company held directly or indirectly more than 50% of the shares with voting rights.
2.Due to the joint investment relationship, all of the shareholders of the Group endorse the company in accordance with their investment ratio.
3.The company held directly or indirectly more than 50% of the shares with voting rights.
4.The company held directly or indirectly more than 90% of the shares with voting rights.
Note 2: Balance of guarantees and endorsements as of the reporting date was within the credit limit approved by the Board of Directors.
Note 3: The following three situations are filled in Y: the endorsement of the subsidiary by the Company; the endorsement of the Company by the subsidiary and the endorsement to the company located in Mainland China.
Note 4: The guarantor’s total amount available for guarantee and endorsement shall not exceed the percentage mentioned below of its net worth: The Company 40% and CMI 40%.
Note 5: The guarantor’s total amount available for guarantee and endorsement shall not exceed the percentage mentioned below of its net worth: The Company 50% and CMI 50%.

(iii) Securities held as of June 30, 2022 (excluding investment in subsidiaries, associates and joint ventures):

(In Thousands of NTD)

				(In Thousands	(In Thousands	(In Thousands	(In Thousands	of NTD)
Name of Holder	Category and Name of Security	Relationship with Issued Company	Account	Ending Balance				Note
				Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value
The Company	MEITA Industrial Co., Ltd.	The Company is the legal person	Non-current financial assets at FVOCI	1,351,164	104,442	% 3.12	104,442
The Company	GUANGYUAN Investment Co., Ltd.	-	Non-current financial assets at FVOCI	3,750,000	30,391	% 3.91	30,391
The Company	DEVELOPMENT Venture Capital Co., Ltd.	The Company is the legal person	Non-current financial assets at FVOCI	3,600,000	17,509	% 4.00	17,509
The Company	Pacific Electric Wire & Cable Co., Ltd.	-	Current financial assets at FVTPL	81,666	-	% 0.01	-
Sunflower Investment	Fantasystory Inc.	-	Non-current financial assets at FVOCI	1,742,746	-	% 19.80	-
Sunflower Investment	il. COM, INC	-	Non-current financial assets at FVOCI	100,000	-	% 0.52	-
The Hotel National	Century National Technology Co., Ltd.	-	Non-current financial assets at FVOCI	35,600	-	% 2.34	-
Atrans Precision	Acore Material Technology Co., Ltd.	-	Non-current financial assets at FVOCI	42,466	-	% 2.12	-

(iv) Individual securities acquired or disposed of with accumulated amount exceeding NT$300 million or 20% of the share capital: None.

(v) Information on the acquisition of real estate exceeding NT$300 million or 20% of the share capital: None.
(vi) Information on the disposal of real estate exceeding of NT$300 million or 20% of the share capital: None.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vii) Information regarding related-party transactions for purchases and sales exceeding NT$300 million or 20% of the share capital:

(In Thousands of NTD)

									(In Thousands of	(In Thousands of	NTD)
Name of Company	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others		Notes/Accounts Receivable (Payable)		Note
			Purchase/Sale	Amount	Percentage of Total Purchases/Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/Accounts Receivable (Payable)
Suzhou CMS	CMI S	ubsidiaries	Sale	689,975	% 47.85	180 days	-	-	2,026,039	83.17%
Suzhou CMB	CMI S	ubsidiaries	Sale	127,810	% 14.13	180 days	-	-	237,322	31.69%
CMW (Tianjin)	CMW (C.I.) S	ubsidiaries	Sale	659,533	% 33.80	180 days	-	-	2,031,139	65.62%

Note : Intra-group transactions have been eliminated in the consolidated financial statements.

(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the share capital:

(In Thousands of NTD/In CNY)

Name of Company	Counter-party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
CMI	CMB (H.K.)	Parent company	Accounts receivable due from related parties, other 210,020	-	-	-	-	-
CMW (C.I.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 2,626,123	-	-	-	-	-
CMP (H.K.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 363,469	-	-	-	-	-
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Accounts receivable due from related parties 2,031,139	0.66	-	-	-	-
Tianjin CMT	CMI	Subsidiaries	Accounts receivable due from related parties 279,364	-	-	-	-	-
Tianjin CMT	CMH	Affiliates	Accounts receivable due from related parties, other 310,800	-	-	-	-	-
Tianjin CMT	Suzhou CMB	Affiliates	Accounts receivable due from related parties, other 111,000	-	-	-	-	-
Suzhou CMB	CMI	Subsidiaries	Accounts receivable due from related parties 237,322	1.30	-	-	-	-
Suzhou CMS	CMI	Subsidiaries	Accounts receivable due from related parties 2,026,039	0.70	-	-	CNY 108,696,734	-
Suzhou CMS	CMH	Affiliates	Accounts receivable due from related parties, other 666,000	-	-	-	-	-

Note : Intra-group transactions have been eliminated in the consolidated financial statements.

(ix) Trading in derivative instruments: None.
(x) Business relationships and significant intercompany transactions:

(In Thousands of NTD)

No. (Note 1)	Name of Company	Name of Counter-party	Nature of Relationship (Note 2)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)
				Account	Amount	Trading Terms	Percentage of the Total Consolidated Revenue or Total Assets (Note 4)
0	China Metal Products	Atrans Precision	1	Operating revenue	30,833	60~90 days	0.40%
0	China Metal Products	CMJ	1	Operating revenue	11,213	90 days	0.15%
1	CMW (Tianjin)	CMW (C.I.)	2	Operating revenue	659,533	180 days	8.64%
3	Suzhou CMS	CMI	2	Operating revenue	689,975	180 days	9.04%
3	Suzhou CMS	Suzhou CMB	3	Operating revenue	24,604	90 days	0.32%
4	Suzhou CMB	Suzhou CMS	3	Operating revenue	51,086	90 days	0.67%
4	Suzhou CMB	CMI	2	Operating revenue	127,810	180 days	1.67%
4	Suzhou CMB	CMB(H.K.)	2	Operating revenue	29,666	180 days	0.39%
5	National Management	China Metal Products	2	Operating revenue	35,050	OA25 days	0.46%
13	CMH	CMW (Tianjin)	3	Operating revenue	85,637	90 days	1.12%
13	CMH	Suzhou CMS	3	Operating revenue	18,291	90 days	0.24%
12	CMAI(N.A.)	CMAI	2	Operating revenue	29,664	90~120 days	0.39%
12	CMAI(N.A.)	CMW (C.I.)	3	Operating revenue	10,066	90~120 days	0.13%
7	CMW(C.I.)	CMAI	3	Operating revenue	11,968	90 days	0.16%
10	CMJ	CMI	3	Operating revenue	18,366	90~120 days	0.24%
0	China Metal Products	Atrans Precision	1	Accounts receivable due from related parties	20,811	60~90 days	0.04%

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

No. (Note 1)	Name of Company	Name of Counter-party	Nature of Relationship (Note 2)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)
				Account	Amount	Trading Terms	Percentage of the Total Consolidated Revenue or Total Assets (Note 4)
1	CMW (Tianjin)	CMW(C.I.)	2	Accounts receivable due from related parties	2,031,139	180 days	4.15%
2	Tianjin CMT	CMI	2	Accounts receivable due from related parties	279,364	180 days	0.57%
2	Tianjin CMT	CMW (Tianjin)	3	Accounts receivable due from related parties	44,157	90 days	0.09%
13	CMH	CMW (Tianjin)	3	Accounts receivable due from related parties	20,462	90 days	0.04%
13	CMH	Suzhou CMS	3	Accounts receivable due from related parties	17,471	90 days	0.04%
3	Suzhou CMS	CMI	2	Accounts receivable due from related parties	2,026,039	180 days	4.14%
4	Suzhou CMB	CMB (H.K.)	2	Accounts receivable due from related parties	44,954	180 days	0.09%
4	Suzhou CMB	CMI	2	Accounts receivable due from related parties	237,322	180 days	0.49%
4	Suzhou CMB	Suzhou CMS	3	Accounts receivable due from related parties	21,993	90 days	0.04%
7	CMW(C.I.)	CMAI	3	Accounts receivable due from related parties	20,287	90 days	0.04%
2	Tianjin CMT	Suzhou CMS	3	Other receivables due from related parties	11,568	-	0.02%
2	Tianjin CMT	Suzhou CMB	3	Other receivables due from related parties	111,000	-	0.23%
2	Tianjin CMT	CMH	3	Other receivables due from related parties	310,800	-	0.64%
3	Suzhou CMS	CMH	3	Other receivables due from related parties	666,000	-	1.36%
6	CMI	CMB (H.K.)	1	Other receivables due from related parties	210,020	-	0.43%
6	CMI	CMH	1	Other receivables due from related parties	22,965	-	0.05%
7	CMW(C.I.)	CMW (Tianjin)	1	Other receivables due from related parties	47,213	-	0.10%
7	CMW(C.I.)	CMI	2	Other receivables due from related parties	2,626,123	-	5.37%
9	CMP(H.K.)	CMI	2	Other receivables due from related parties	363,469	-	0.74%
11	CMAI	Pilot	1	Other receivables due from related parties	41,662	-	0.09%
11	CMAI	CMAI(N.A.)	1	Other receivables due from related parties	32,666	-	0.07%
8	CMB(H.K.)	Suzhou CMB	1	Other long-term receivables due from related parties	25,925	-	0.05%

Note 1: For the inter-company business relationship and transaction condition in the “Number” column, the labeling method is as follows: 1. Parent company - 0.

Subsidiaries – In sequence from 1.

Note 2: Relationship is classified into three types:

Parent company to subsidiary.
Subsidiary to parent company.
Subsidiary to subsidiary.

Note 3: The Group only disclosed the information on sales and accounts receivable with subsidiary and did not give unnecessary details of opposite purchases and accounts payables in this part.

Note 4: The transaction amount is divided by the consolidated operating revenue or the consolidated total assets.

Note 5: Intra-group transactions have been eliminated in the consolidated financial statements.

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the six months ended June 30, 2022 (excluding information on investees in Mainland China):

(In Thousands of NTD/In USD and CNY)

Name of Investor	Name of Investee	Location	Main Businesses	Original Investment Amount	Original Investment Amount	Balance as of June 30, 2022	Balance as of June 30, 2022	Balance as of June 30, 2022	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				June 30, 2022	December 31, 2021	Shares	Percentage of Ownership	Carrying Value
The Company	UEA	British Virgin Islands	Investing in CMI	865,286	865,286	667,820	% 100.00	7,340,306	145,264	145,264	Subsidiaries
The Company	Sunflower Investment	Taiwan	Investing	99,096	99,000	67,013,057	% 99.01	1,002,450	47,256	46,786	Subsidiaries
The Company	Atrans Precision	Taiwan	Vehicle parts processing	247,218	247,218	25,782,134	% 72.24	414,526	48,175	34,221	Subsidiaries
The Company	CMJ	Japan	Cast iron product retailing	4,887	4,887	500	% 83.33	106,044	28,633	23,860	Subsidiaries
The Company	CMAI	Hong Kong	Vehicle parts retailing	24,036	24,036	1,000,000	% 100.00	154,312	11,118	11,118	Subsidiaries
The Company	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	2,003,067	2,003,067	158,877,643	% 56.65	4,181,636	294,212	157,181	Subsidiaries
The Company	Amida Trustlink Assets	Taiwan	Real estate developing, leasing and financial claims acquiring from financial institutions	44,576	44,576	16,763,726	% 35.21	(21,760)	(302)	-	Investees accounted for using equity method
The Company	The Hotel National	Taiwan	International tourist hotel services	1,515,952	1,515,952	5,000,000	% 100.00	1,289,915	(11,012)	(11,957)	Subsidiaries
The Company	National Management	Taiwan	Management and consulting services	10,000	10,000	1,000,000	% 100.00	15,116	1,107	3,383	Subsidiaries
The Company	The Splendor Hospitality	Taiwan	International tourist hotel services	1,125,000	975,000	32,500,000	% 50.00	277,109	(66,796)	(40,328)	Joint ventures accounted for using equity method
The Company	Shangrila Tourism	Taiwan	Amusement park and hotel services	564,303	559,470	22,664,800	% 100.00	422,178	(9,226)	(6,808)	Subsidiaries
The Company	CMAAN Health	Taiwan	Management and consulting services	50,000	50,000	5,000,000	% 50.00	44,793	4,290	2,058	Joint ventures accounted for using equity method
The Company	InterContinental Taichung	Taiwan	International tourist hotel services	338,800	88,800	33,880,000	% 100.00	338,058	(579)	(579)	Subsidiaries
The Company	Calligraphy Greenway Plaza Co., Ltd	Taiwan	Management and consulting services	59,000	59,000	5,900,000	% 100.00	61,191	6,366	4,091	Subsidiaries
Sunflower Investment	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	280,768	280,768	42,269,213	% 15.07	1,077,454	294,212	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Atrans Precision	Taiwan	Vehicle parts processing	77,836	77,836	4,737,380	% 13.27	75,754	48,175	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Amida Trustlink Assets	Taiwan	Real estate developing, leasing and financial claims acquiring from financial institutions	-	-	5,951,619	% 12.50	(7,727)	(302)	Exempt from disclosure	Investees accounted for using equity method
Sunflower Investment	ADVANCISION (CAYMAN)	Cayman Islands	Investing and cast iron product retailing	29,154	29,154	1,871,288	% 4.46	26,011	5,730	Exempt from disclosure	Investee accounted for using equity method
UEA	CMI	Cayman Islands	Investing in CMI (BVI) and cast iron product retailing	USD 136,536,250	USD 136,536,250	823,281,475	% 83.27	USD 279,427,904	USD 5,911,048	Exempt from disclosure	Subsidiaries of UEA
CMI	CMI (BVI)	British Virgin Islands	Investing in CMP (H.K.)	USD 280,426	USD 280,426	161	% 100.00	CNY 1,308,648,401	CNY 26,053,137	Exempt from disclosure	Subsidiaries of CMI
CMI	CMW (C.I.)	Cayman Islands	Investing in CMW (Tianjin) and CMH	USD 75,156,500	USD 75,156,500	50,000,000	% 100.00	CNY 1,881,672,217	CNY 55,719,131	Exempt from disclosure	Subsidiaries of CMI
CMI	CMB (H.K.)	Hong Kong	Investing in Suzhou CMB	USD 85,820,000	USD 85,820,000	82,000,000	% 100.00	CNY 545,194,732	CNY (11,831,940)	Exempt from disclosure	Subsidiaries of CMI
CMI(BVI)	CMP (H.K.)	Hong Kong	Investing in Tianjin CMT and Suzhou CMS	USD 21,000,000	USD 21,000,000	21,000,000	% 100.00	CNY 1,313,140,643	CNY 26,053,137	Exempt from disclosure	Subsidiaries of CMI(BVI)
CMAI	CMAI Holding	USA	Investing	USD 8,328,644	USD 8,328,644	10,000	% 100.00	USD 2,364,578	USD (160,590)	Exempt from disclosure	Subsidiaries of CMAI
CMAI Holding	Pilot	USA	Assets leasing	USD 8,328,644	USD 8,328,644	-	% 100.00	USD 2,364,578	USD (160,590)	Exempt from disclosure	Subsidiaries of CMAI Holding
Pilot	CMAI (N.A.)	USA	Vehicle parts retailing	USD 7,792,972	USD 7,792,972	10,000	% 100.00	USD 1,338,074	USD (208,887)	Exempt from disclosure	Subsidiaries of Pilot
Atrans Precision	FAR HSING (SAMOA)	SAMOA	Investing	USD 3,922,055	USD 3,922,055	3,922,055	% 100.00	122,241	1,240	Exempt from disclosure	Subsidiaries of Atrans Precision
FAR HSING (SAMOA)	ADVANCISION (CAYMAN)	Cayman Islands	Investing and cast iron product retailing	USD 4,959,029	USD 4,959,029	9,068,414	% 21.59	USD 3,652,368	USD 199,527	Exempt from disclosure	Investees of FAR HSING (SAMOA) accounted for using equity method
PUJEN Land Development	Keng-Hsin Urban Renewal	Taiwan	Residents, commercial buildings and factories leasing and developing	234,496	250,928	31,220,979	% 30.00	358,644	6,721	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equity method

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor	Name of Investee	Location	Main Businesses	Original Investment Amount	Original Investment Amount	Balance as of June 30, 2022	Balance as of June 30, 2022	Balance as of June 30, 2022	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				June 30, 2022	December 31, 2021	Shares	Percentage of Ownership	Carrying Value
PUJEN Land Development	CHINGENG Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	1,500	1,500	150,000	% 50.00	9,272	7,742	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUJEN CHENGMEI Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	94,500	94,500	9,450,000	% 70.00	68,845	(161)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUCHIA Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	50	50	5,000	% 50.00	1,041	(172)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	Shangrila Tourism	Taiwan	Amusement park and hotel services	-	89,867	-	% -	-	(9,226)	Exempt from disclosure	Subsidiaries of the Company
PUJEN Land Development	Hua-Pu Development	Taiwan	Residents, commercial buildings and factories leasing and developing	5,000	5,000	500,000	% 50.00	5,095	(26)	Exempt from disclosure	Joint ventures of PUJEN Land Development accounted for using equity method
PUJEN Land Development	Beyond Fitness	Taiwan	Sport training and other consulting service	4,050	4,050	494,333	% 36.82	2,499	425	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equity method

(c) Information on investment in Mainland China:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousands of NTD, CNY, USD and JPY)

Name of Investee	Main Businesses	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2022	Investme	nt Flows	Accumulated Outflow of Investment from Taiwan as of June 30, 2022	Net Income (Losses) of the Investee	Percentage of Ownership	Investment Income (Losses) (Notes 2,3)	Book Value (Note 3)	Accumulated Remittance of Earnings in Current Period (Note 5)
					Outflow	Inflow
Tianjin CMT	Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	891,600 (USD30,000)	2	388,238	-	-	388,238	6,961 (CNY1,571)	83.27%	5,796 (CNY1,308)	1,098,113 (CNY247,323)	82,542
Suzhou CMS	Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	713,280 (USD24,000)	2	423,406	-	-	423,406	101,792 (CNY22,978)	83.27%	84,706 (CNY19,121)	4,366,524 (CNY983,451)	14,601
Suzhou CMB	Cast iron product designing, manufacturingand retailing	2,437,040 (USD82,000)	2	-	-	-	-	(36,959) (CNY(8,343))	83.27%	(30,776) (CNY(6,947))	2,623,651 (CNY590,912)	-
CMW (Tianjin)	Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling	951,040 (USD32,000)	2	-	-	-	-	103,520 (CNY23,368)	83.27%	101,789 (CNY22,977)	5,316,245 (CNY1,197,352)	-
CMH	Vehicle parts, farm wagon parts, industrial wagon parts household appliances parts and E&M as-casting and molds developing, manufacturing, selling and after sales services	951,040 (USD32,000)	2	-	-	-	-	(38,433) (CNY(8,676))	83.27%	(32,003) (CNY(7,224))	893,764 (CNY201,298)	-
Qingdao Sourcing Specialists	Cast iron product retailing	2,972 (USD100)	2	-	-	-	-	924 (JPY3,948)	83.33%	770 (JPY3,290)	48,586 (JPY222,668)	-

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Limitation on investment in Mainland China:

(In Thousands of NTD and USD)

	(In	Thousands of NTD and USD)
Accumulated Investment in Mainland China as of June 30, 2022	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on Investment (Note 4)
811,644	6,200,216 (USD 208,621 )	-

Note 1: Method of investment is classified into three types:
Directly invested in Mainland China.
Indirectly invested in Mainland China through the third region.
Other methods.
Note 2: The recognition basis of the investment income and losses is the financial report audited by an international accounting firm which is in partnership with the accounting firm in the R.O.C.
Note 3: The amount stated is the investment income and losses and the book value of the investment at the end of the period which is recognized by the subsidiaries established through the investment in the third region.
Note 4: The Company complies with the amended Permit 9704604680 ‘ Investment or technical cooperation review principal in China’ , which obtained the certified documents of the operational scope of the headquarters from the Industrial Development Bureau, Ministry of Economic Affairs, with the valid period from March 3, 2020 to March 2, 2023. The restriction on the cumulative investment amount or proportion in China is not applicable.
Note 5: As of June 30, 2022, the company had obtained a surplus of $3,158,142 thousand (USD104,955 thousand) from the investment companies set up in the third region. The surplus was remitted to the companies by the subsidiaries which was invested indirectly in China and then was remitted to Taiwan. It was impossible to distinguish the remittance from the company in China.
Note 6: The aforementioned investments have been eliminated in the consolidated financial statements.
Note 7: The amount in the table is translated by the spot rate on the financial reporting date.

(iii) Significant transactions: None.

(d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Chain-Yuan Investment Co., Ltd.	53,934,965	% 14.33
Fubon Life Assurance Co., Ltd.	27,944,000	% 7.42
Mr. Ming Shiann, Ho	26,312,540	% 6.99

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(14) Segment information:

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

For the Three Months Ended June 30, 2022 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Three Months Ended June 30, 2021 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Six Months Ended June 30, 2022 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Six Months Ended June 30, 2021 Revenue from external customers $ Intersegment revenues Total revenue $ Reportable segment profit or loss $	Metal Manufacturing Segment	Real Estate Development Segment 162,453 849 163,302 (36,475) 195,571 848 196,419 (6,140) 1,566,625 1,698 1,568,323 372,221 576,681 1,698 578,379 87,790	Lifestyle Hospitality Segment 127,367 16,325 143,692 (11,092) 96,203 14,045 110,248 (46,250) 291,115 37,945 329,060 6,519 264,012 37,656 301,668 (36,375)	Reconciliation and Elimination - (998,336) (998,336) (161,532) - (907,111) (907,111) (78,881) - (1,864,089) (1,864,089) (284,266) - (1,807,949) (1,807,949) (171,033)	Total
	$ 2,750,573 981,162 $ 3,731,735 $ 224,225 $ 3,017,029 892,218 $ 3,909,247 $ 236,237 $ 5,778,185 1,824,446 $ 7,602,631 $ 454,073 6,077,823 1,768,595 7,846,418 500,362				3,040,393 - 3,040,393 15,126 3,308,803 - 3,308,803 104,966 7,635,925 -
					7,635,925
					548,547
					6,918,516 - 6,918,516 380,744

Note: The amount of assets and liabilities of the Group’ s reportable segments was not provided to the management. It is not required for disclosure.

AI assistant

CMP — Interim / Quarterly Report 2022

51855_rns_2022-11-11_23568e7e-46d5-4773-975a-49ae2cfae6d5.pdf

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three Months and Six Months Ended June 30, 2022 and 2021

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2022 and 2021

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Six Months Ended June 30, 2022 and 2021

(1) Company history

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

(3) New standards, amendments and interpretations adopted:

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies

(a) Statement of compliance

(b) Basis of consolidation

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Income taxes

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Employee benefits

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

(6) Explanation of significant accounts:

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Inventories

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(e) Investments accounted for using equity method

(i) Associates

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Joint ventures

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Loss of control over a subsidiary

(h) Property, plant and equipment

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Right-of-use assets

(j) Investment property

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Intangible assets

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Other non-current assets

(n) Short-term borrowings

(i) Borrowing and repayment

(ii) Collateral for bank borrowings

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Long-term borrowings

(i) Borrowing and repayment

(ii) Collateral for bank borrowings

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Bonds payable

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Repurchase:

(vi) Conversion:

(q) Lease liabilities

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Real estate leases

(ii) Other leases

(r) Provisions

CMP Interim / Quarterly Report 2022