CMP — Interim / Quarterly Report 2023

Nov 13, 2023

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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, 2023 and 2022

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.

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Table of contents

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

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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 kpmg.com/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, 2023 and 2022, and the related consolidated statements of comprehensive income, for the three months and six months ended June 30, 2023 and 2022, and the changes in equity and cash flows for the six months ended June 30, 2023 and 2022, 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 the Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. 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 Standards on Auditing of the Republic of China 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 $3,199,258 thousand and $3,028,492 thousand, constituting 6.07% and 6.19% of the consolidated total assets; and the total liabilities amounting to $1,494,724 thousand and $1,548,293 thousand, constituting 4.10% and 4.76% of the consolidated total liabilities as of June 30, 2023 and 2022, respectively, as well as the total comprehensive income (loss) amounting to $21,978 thousand, $40,906 thousand, $46,394 thousand and $95,308 thousand, constituting 20.34%, (31.66)%, 37.36% and 13.64% of the consolidated total comprehensive income (loss) for the three months and six months ended June 30, 2023 and 2022, respectively.

Furthermore, as stated in Note 6(e), the other equity accounted investments of the Group in its investee companies of $656,444 thousand and $793,212 thousand as of June 30, 2023 and 2022, respectively, and its equity in net earnings on these investee companies of $(15,756) thousand, $(25,350) thousand, $(23,989) thousand and $(34,613) thousand for the three months and six months ended June 30, 2023 and 2022, 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.

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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, 2023 and 2022, and of its consolidated financial performance for the three months and six months ended June 30, 2023 and 2022, and its consolidated cash flows for the six months ended June 30, 2023 and 2022 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 Kuo-Yang Tseng and Shih-Chin Chih.

KPMG

Taipei, Taiwan (Republic of China) August 11, 2023

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.

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.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2023, December 31, 2022, and June 30, 2022

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 (Notes 6(a) and (z)) 1170 (Notes 6(c), (w) and (z)) 1180 (Notes 6(z) and 7) 1200 (Note 6(z)) 1210 (Notes 6(z) and 7) 130X (Notes 6(d), 8 and 9(a)) 1410 (Note 9(a)) 1476 (Notes 6(z), 8 and 9(a)) 1479 1480 Total current assets Non-current assets: 1517 (Notes 6(b) and (z)) 1550 (Notes 6(e) and (f)) 1600 (Notes 6(g), 8 and 9(a)) 1755 (Note 6(h)) 1760 (Notes 6(i) and 8) 1780 (Note 6(j)) 1840 1975 1980 (Notes 6(k), (z), 7 and 9(a)) 1990 (Notes 6(l), 7, 8 and 9(a)) Total non-current assets Total assets	June 30, 2023 Amount % $ 6,037,811 12 3,386,772 6 6,852 - 102,337 - 496 - 22,726,593 43 199,762 - 1,314,216 3 528,421 1 425,035 1 34,728,295 66 196,151 - 656,444 1 10,342,080 20 1,755,928 4 662,144 1 419,310 1 177,198 - - - 690,442 1 3,052,015 6 17,951,712 34 $ 52,680,007 100	December 31, 2022 Amount % 6,068,902 11 3,814,610 7 9,163 - 78,170 - 4,888 - 22,046,213 42 194,796 - 1,900,962 4 360,259 1 429,344 1 34,907,307 66 179,363 - 707,979 1 10,610,646 20 1,859,349 4 663,386 1 426,746 1 175,561 - 633 - 686,862 1 2,811,563 6 18,122,088 34 53,029,395 100	June 30, 2022 Amount % 4,071,574 8 3,570,821 7 5,123 - 70,139 - 9,806 - 20,719,420 42 266,372 1 1,325,214 3 328,421 1 378,382 1 30,745,272 63 152,342 - 793,212 2 10,642,730 22 1,961,585 4 664,629 1 411,925 1 97,159 - 13,117 - 686,732 1 2,747,299 6 18,170,730 37 48,916,002 100 Liabilities and equity Current liabilities: 2100 (Notes 6(m) and (z)) 2130 (Notes 6(w), 7 and 9(a)) 2170 (Notes 6(z) and 7) 2180 (Notes 6(z) and 7) 2200 (Note 6(z)) 2220 (Notes 6(z) and 7) 2230 2280 (Notes 6(p) and (z)) 2322 (Notes 6(n) and (z)) 2399 (Note 6(s)) Total current liabilities Non-current liabilities: 2500 (Notes 6(o) and (z)) 2530 (Notes 6(o) and (z)) 2540 (Notes 6(n) and (z)) 2570 2580 (Notes 6(p) and (z)) 2640 2670 (Notes 6(q), (z) and 7) Total non-current liabilities Total liabilities Equity attributable to owners of parent (Note 6(u)): 3100 3200 (Note 6(o)) 3300 3400 Total equity attributable to owners of parent: 36XX Total equity Total liabilities and equity	June 30, 2023		December 31, 2022	December 31, 2022		June 30, 2022
				Amount % $ 11,405,737 22 5,931,522 11 3,016,797 6 35,284 - 1,856,281 4 175 - 74,015 - 193,659 - 742,775 1 143,628 - 23,399,873 44 165 - 1,545,146 3 9,291,839 18 509,847 1 1,384,015 3 27,516 - 290,112 - 13,048,640 25 36,448,513 69 3,761,252 7 1,542,513 3 7,337,073 14 (195,361) - 12,445,477 24 3,786,017 7 16,231,494 31 $ 52,680,007 100		Amount	%		Amount % 10,256,925 21 4,191,374 9 2,861,703 6 27,238 - 2,186,495 5 278 - 42,574 - 188,872 - 542,995 1 157,861 - 20,456,315 42 6,933 - 1,576,170 3 7,959,193 16 467,115 1 1,570,052 3 21,963 - 468,684 1 12,070,110 24 32,526,425 66 3,761,221 8 1,542,162 3 7,113,815 15 155,102 - 12,572,300 26 3,817,277 8 16,389,577 34 48,916,002 100
						11,582,617 4,864,716 3,029,941 40,301 1,383,231 749 86,957 188,005 2,470,335 171,969	22 9 6 - 3 - - - 5 - 45 - 3 16 1 3 - 1 24 69 7 3 14 - 24 7 31 100
						23,818,821
						8,253 1,560,633 8,456,951 512,520 1,479,111 29,643 478,573
						12,525,684
						36,344,505
						3,761,221 1,542,440 7,492,071 61,209
						12,856,941
						3,827,949
						16,684,890
						53,029,395

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three Months and Six Months Ended June 30, 2023 and 2022

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

For the Three Months Ended June 30 2023 2022 Amount % Amount % 4000 (Notes 6(w) and 7) $ 4,661,540 100 3,040,393 100 5000 (Notes 6(d) and 7) (3,570,941) (76) (2,488,696) (82) Gross profit from operations 1,090,599 24 551,697 18 Operating expenses(Note 7): 6100 (129,097) (3) (143,924) (5) 6200 (Note 6(x)) (414,661) (9) (366,669) (12) 6300 (2,003) - (8,788) - 6450 (Note 6(c)) (2,761) - (1,473) - Total operating expenses (548,522) (12) (520,854) (17) Net operating income 542,077 12 30,843 1 Non-operating income and expenses: 7100 (Notes 6(y) and 7) 22,923 - 8,168 - 7010 (Notes 6(y) and 7) 71,361 2 40,282 2 7020 (Notes (o) and (y)) 24,078 - 23,320 1 7050 (Notes 6(y) and 7) (100,577) (2) (62,137) (2) 7060 (Note 6(e)) (15,756) - (25,350) (1) Total non-operating income and expenses 2,029 - (15,717) - Profit from continuing operations before tax 544,106 12 15,126 1 7950 Less: Tax (expense) income(Note 6(t)) (78,584) (2) 75,456 2 8200 Net profit 465,522 10 90,582 3 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(u) and (z)) - - (11,969) - 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) - 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign financial statements(Note 6(u)) (357,465) (8) (207,804) (7) 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 (357,465) (8) (207,804) (7) 8300 Other comprehensive income (after tax) (357,465) (8) (219,773) (7) 8500 Comprehensive income $ 108,057 2 (129,191) (4) Net profit, attributable to: 8610 Owners of parent $ 322,291 7 92,432 3 8620 Non-controlling interests 143,231 3 (1,850) - $ 465,522 10 90,582 3 Comprehensive income attributable to: 8710 Owners of parent $ 23,570 - (96,220) (3) 8720 Non-controlling interests 84,487 2 (32,971) (1) $ 108,057 2 (129,191) (4) Earnings per share (expressed in dollars)(Note 6(v)) 9750 Basic earnings per share $ 0.86 0.25 9850 Diluted earnings per share $ 0.74 0.21

For the Six Months Ended June 30 2023 2022 Amount % Amount % 7,532,712 100 7,635,925 100 (5,888,099) (78) (5,980,279) (78) 1,644,613 22 1,655,646 22 (245,577) (3) (288,351) (4) (826,011) (11) (779,378) (11) (6,760) - (11,594) - (1,155) - (1,372) - (1,079,503) (14) (1,080,695) (15) 565,110 8 574,951 7 40,255 1 15,959 - 110,578 1 63,090 1 25,172 - 42,946 1 (206,878) (3) (113,786) (2) (23,989) - (34,613) - (54,862) (1) (26,404) - 510,248 7 548,547 7 (76,616) (1) 13,421 - 433,632 6 561,968 7 (3,212) - (17,765) - - - - - (3,212) - (17,765) - (306,243) (4) 154,637 2 - - - - (306,243) (4) 154,637 2 (309,455) (4) 136,872 2 124,177 2 698,840 9 298,152 4 438,713 5 135,480 2 123,255 2 433,632 6 561,968 7 39,679 1 541,203 7 84,498 1 157,637 2 124,177 2 698,840 9 0.79 1.17 0.65 1.02

2023 Amount % 7,532,712 100 (5,888,099) (78) 1,644,613 22 (245,577) (3) (826,011) (11) (6,760) - (1,155) - (1,079,503) (14) 565,110 8 40,255 1 110,578 1 25,172 - (206,878) (3) (23,989) - (54,862) (1) 510,248 7 (76,616) (1) 433,632 6 (3,212) - - - (3,212) - (306,243) (4) - - (306,243) (4) (309,455) (4) 124,177 2 298,152 4 135,480 2 433,632 6 39,679 1 84,498 1 124,177 2 0.79 0.65

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity For the Six Months Ended June 30, 2023 and 2022 (Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2022 Profit for the six months ended June 30, 2022 Other comprehensive income for the six months ended June 30, 2022 Total comprehensive income for the six months ended June 30, 2022 Appropriation and distribution of retained earnings: Legal reserve Cash dividends Difference between consideration and carrying amount of subsidiaries acquired or disposed of Changes in equity of associates and joint ventures accounted for using equity method Recognition of equity component items from convertible bonds Changes in non-controlling interests 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, 2023 Profit for the six months ended June 30, 2023 Other comprehensive income for the six months ended June 30, 2023 Total comprehensive income for the six months ended June 30, 2023 Appropriation and distribution of retained earnings: Legal reserve Cash dividends Conversion of convertible bonds Changes in non-controlling interests 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, 2023				Equity Attributable to Owners of	Equity Attributable to Owners of	Equity Attributable to Owners of	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
	$ 3,761,221 - - - - - - - - - - - $ 3,761,221 $ 3,761,221 - - - - - 31 - - - $ 3,761,252		1,488,270		1,844,008		49,081		5,579,250		(25,292) - 120,256 120,256 - - - - - - - - 94,964 10,196 - (255,261) (255,261) - - - - - - (245,065)		78,077		12,774,615		3,973,038 123,255 34,382 157,637 - - - - - (1,544) (311,854) - 3,817,277 3,827,949 135,480 (50,982) 84,498 - - - (48) (126,382) - 3,786,017	16,747,653 561,968 136,872 698,840 - (793,618) 5,330 (3,792) 48,562 (1,544) (311,854) - 16,389,577 16,684,890 433,632 (309,455) 124,177 - (451,347) 104 (48) (126,382) 100 16,231,494
			- -		- -		- -		438,713 -						438,713 102,490
			-		-		-		438,713						541,203
			- - 5,330 - 48,562 - - -		120,840 - - - - - - -		- - - - - - - -
			1,542,162		1,964,848		49,081
			1,542,440		1,964,848		49,081
			- -		- -		- -
			-		-		-
			- - 73 - - -		81,335 - - - - -		- - - - - -
			1,542,513		2,046,183		49,081

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2023 and 2022

(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 Net (gains) losses on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of profit loss 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 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 operations Interest received Dividends received Interest paid Income taxes paid Net cash flows generated from 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 capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment 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 (Decrease) 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 (Decrease) increase in other non-current liabilities Cash dividends paid to non-controlling interests Change in non-controlling interests Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

For the Six Months Ended June 30 2023 2022 $ 510,248 548,547 527,730 518,242 2,375 2,778 1,155 1,372 (8,088) 2,641 206,878 113,786 (40,255) (15,959) (14,527) (16,341) 23,989 34,613 3,198 4,623 542 8,036 (4) - 11,150 51,815 714,143 705,606 334,713 570,385 5,479 (2,246) (28,648) 69,127 (675,523) (590,500) (5,745) 63,744 (175,344) (2,676) 208,327 326,047 4,309 (64,470) (332,432) 369,411 17,005 (604,618) (170,387) (489,182) 1,069,959 571,625 (27,227) 11,869 (107) (13,397) 889,243 (523,703) 556,811 (154,292) 1,270,954 551,314 1,781,202 1,099,861 32,926 8,909 47,927 76,889 (274,880) (157,849) (86,043) (117,667) 1,501,132 910,143 (20,000) - - 37,190 - 8,000 - (150,015) - 16,432 (294,743) (264,271) 1,155 2,906 373,938 546,702 (276,236) (705,396) (215,886) (508,452) 4,925,845 6,630,748 (4,676,900) (5,629,501) (364,831) 80,056 - 1,644,717 3,400,000 3,000,000 (4,296,030) (6,718,800) (94,438) (97,169) (22,597) 1,198 (78,636) (311,854) (50) (96) (1,207,637) (1,400,701) (108,700) 30,939 (31,091) (968,071) 6,068,902 5,039,645 $ 6,037,811 4,071,574

2023 $ 510,248 527,730 2,375 1,155 (8,088) 206,878 (40,255) (14,527) 23,989 3,198 542 (4) 11,150 714,143 334,713 5,479 (28,648) (675,523) (5,745) (175,344) 208,327 4,309 (332,432) 17,005 (170,387) 1,069,959 (27,227) (107) 889,243 556,811 1,270,954 1,781,202 32,926 47,927 (274,880) (86,043) 1,501,132 (20,000) - - - - (294,743) 1,155 373,938 (276,236) (215,886) 4,925,845 (4,676,900) (364,831) - 3,400,000 (4,296,030) (94,438) (22,597) (78,636) (50) (1,207,637) (108,700) (31,091) 6,068,902 $ 6,037,811

See accompanying notes to consolidated financial statements.

8

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements For the Six Months Ended June 30, 2023 and 2022

(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, 2023.

(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. 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, 2023:

• ●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”

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

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 IAS 1 “Non-current Liabilities with Covenants”

• ●Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information”

• ●IFRS16 “Requirements for Sale and Leaseback Transactions”

• ●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

• ●Amendments to IAS12 “International Tax Reform – Pillar Two Model Rules”

(Continued)

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

(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, 2022. For the related information, please refer to Note 4 of the consolidated financial statements for the year ended December 31, 2022.

(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, 2022. For the related information, please refer to Note 4(c) of the consolidated financial statements for the year ended December 31, 2022.

(i) List of subsidiaries in the consolidated financial statements

Investor	Name of Subsidiary	Principal Activity		Percentage Ownership June 30, 2023 December 31, 2022 June 30, 2022 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 85.51 Note 1 % 99.01 % 99.01 % 99.01 Note 1 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 1 &Note 4 % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.82 % 71.82 % 71.72 Note 2 % 100.00 % 100.00 % 100.00 Note 1	Percentage Ownership June 30, 2023 December 31, 2022 June 30, 2022 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 85.51 Note 1 % 99.01 % 99.01 % 99.01 Note 1 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 1 &Note 4 % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.82 % 71.82 % 71.72 Note 2 % 100.00 % 100.00 % 100.00 Note 1
				June 30, 2023	December 31, 2022
The Company The Company and Sunflower Investment The Company The Company The Company The Company The Company The Company and Sunflower Investment The Company and PUJEN Land Development	United Elite Agents Limited (UEA) Atrans Precision Industries Co., Ltd. (Atrans Precision) Sunflower Investment Co., Ltd. (Sunflower Investment) The Hotel National Co., Ltd. (The Hotel National) CMAI CO., LIMITED. (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)	Investing Vehicle parts processing Investing 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		% 100.00 % 85.51 % 99.01 % 100.00 % 100.00 % 83.33 % 100.00 % 71.82 % 100.00	% 100.00 % 85.51 % 99.01 % 100.00 % 100.00 % 83.33 % 100.00 % 71.82 % 100.00

(Continued)

10

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

Investor	Name of Subsidiary	Principal Activity		Percentage Ownership June 30, 2023 December 31, 2022 June 30, 2022 Note % 100.00 % 100.00 % 100.00 Note 1 &Note 7 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % - % - Note 1 &Note 5 % 83.27 % 83.27 % 83.27 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 % 100.00 % 100.00 % 100.00 Notes 2 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 50.00 % 50.00 % 50.00 Note 1 % 70.00 % 70.00 % 70.00 Note 1 % - % 50.00 % 50.00 Note 1 &Note 6	Percentage Ownership June 30, 2023 December 31, 2022 June 30, 2022 Note % 100.00 % 100.00 % 100.00 Note 1 &Note 7 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % - % - Note 1 &Note 5 % 83.27 % 83.27 % 83.27 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 % 100.00 % 100.00 % 100.00 Notes 2 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 50.00 % 50.00 % 50.00 Note 1 % 70.00 % 70.00 % 70.00 Note 1 % - % 50.00 % 50.00 Note 1 &Note 6
				June 30, 2023	December 31, 2022
The Company The Company The Company UEA CMI CMI CMI CMB (H.K.) CMI (BVI) CMP (H.K.) CMP (H.K.) CMW (C.I.) CMW (C.I.) CMJ Atrans Precision PUJEN Land Development PUJEN Land Development PUJEN Land Development	Taichung CMP Hospitality Management Consulting Co., Ltd.(Taichung CMP Hospitality) Calligraphy Greenway Plaza Co., Ltd. (Calligraphy Greenway Plaza) Great Naturalistic Block Co., Ltd. (Great Naturalistic Block) 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)) CMI (Wu Han) Precision Machinery Co., Ltd. (CMH) Qingdao Sourcing Specialists Trading Co., Ltd. (Qingdao Sourcing Specialists) FAR HSING (SAMOA) ENTERPRISE CO., LTD. (FAR HSING (SAMOA)) CHINGENG Land Development Co., Ltd. (CHINGENG Land Development) PUJEN CHENGMEI Land Development Co., Ltd. (PUJEN CHENGMEI Land Development) PUCHIA Land Development Co., Ltd. (PUCHIA Land Development)	International tourist hotel services Management and consulting 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 Vehicle parts, farm wagon parts, industrial wagon parts, household appliances parts and E&M as-casting and molds developing, manufacturing, selling and the after sales services Cast iron product retailing Investing Residents, commercial buildings and factories leasing and developing Residents, commercial buildings and factories leasing and developing Residents, commercial buildings and factories leasing and developing		% 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 % 100.00 % 50.00 % 70.00 % -	% 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 % 100.00 % 50.00 % 70.00 % 50.00

(Continued)

11

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

Investor	Name of Subsidiary	Principal Activity		Percentage Ownership June 30, 2023 December 31, 2022 June 30, 2022 Note % 100.00 % 100.00 % - Note 1 &Note 3 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1	Percentage Ownership June 30, 2023 December 31, 2022 June 30, 2022 Note % 100.00 % 100.00 % - Note 1 &Note 3 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1
				June 30, 2023	December 31, 2022
PUJEN Land Development CMAI CMAI Holding Pilot	PUZHI Construction Co., Ltd. (PUZHI Construction) CMAI Holding, Inc. (CMAI Holding) Pilot Drive LLC (Pilot) CMAI INDUSTRIES, INC. (CMAI N.A.)	Comprehensive construction Activities, residents, commercial buildings and factories leasing and developing Investing Assets leasing Vehicle parts retailing		% 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00

• Note 1: An non-significant subsidiary, its financial statements have not been reviewed.

• Note 2: The financial statements have been reviewed.

• Note 3: Obtained in the 4th quarter of 2022.

• Note 4: Formorly named as the “CHINA METAL AUTOMOTIVE INTERNATIONAL CO.,LTD ”.

• Note 5: Obtained in the 2nd quarter of 2023.

Note 6: The liquidation procedure was completed on June 27, 2023. Note 7: Formorly named as the “InterContinental Taichung Co., Ltd.”

• (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.

(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.

(Continued)

12

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

(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, 2022. For the related information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2022.

(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, 2022. Please refer to Note 6 of the 2022 annual consolidated financial statements.

• (a) Cash and cash equivalents

Cash on hand Cash in banks Time deposits Cash and cash equivalents	June 30, 2023 $ 5,516 4,575,154 1,457,141 $ 6,037,811	December 31, 2022 6,561 4,008,099 2,054,242 6,068,902	June 30, 2022
			6,246 3,056,348 1,008,980
			4,071,574

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

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

Equity investments at fair value through other comprehensive income Stocks unlisted on domestic markets— MEITA Industrial Co., Ltd. Stocks unlisted on domestic markets— GUANGYUAN Investment Co., Ltd. Stocks unlisted on domestic markets— DEVELOPMENT Venture Capital Co., Ltd. Stocks unlisted on domestic markets— Asia World Engineering & Construction Co., Ltd. Stocks unlisted on domestic markets— MASADA Technology Limited Co., Ltd. Total	June 30, 2023 $ 99,955 31,134 15,062 30,000 20,000 $ 196,151	December 31, 2022 103,188 30,418 15,757 30,000 - 179,363	June 30, 2022
			104,442 30,391 17,509 - -
			152,342

(Continued)

13

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

• (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, 2023 and 2022, the Group received dividend income amounting to $14,487 thousand, $16,341 thousand, $14,527 thousand and $16,341 thousand, respectively, from the above investments measured at FVOCI.

• (iii) In the second quarter of 2022, the Group had 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 disposal gain of $175 thousand, which was reclassified from other comprehensive income to retained earnings.

• (iv) Please refer to Note 6(z) for the information on credit risk (including the impairment of debt instrument investments) and market risk.

• (v) As of June 30, 2023, December 31 and June 30, 2022, the financial assets were not pledged as collateral.

• (c) Notes and accounts receivable

Notes receivable from operating activities Accounts receivable measured as amortized cost Subtotal Less: Loss allowance Total	June 30, 2023 $ 480,924 2,911,733 3,392,657 (5,885) $ 3,386,772	December 31, 2022 475,583 3,344,375 3,819,958 (5,348) 3,814,610	June 30, 2022 416,242 3,159,782 3,576,024 (5,203) 3,570,821

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:

Current 1 to 30 days past due 31 to 90 days past due 91 to 120 days past due 121 days to a year past due Over a year past due		June 30, 2023
	Gross Carrying Amount $ 3,226,025 62,039 59,252 25,071 19,508 762 $ 3,392,657	Weighted Average Loss Rate 0% 0% 0% 0% 25.23%~49.96% 100%	Loss Allowance Provision
			- - - - 5,123 762
			5,885

(Continued)

14

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

Current 1 to 30 days past due 31 to 90 days past due 91 to 120 days past due 121 days to a year past due Over a year past due Current 1 to 30 days past due 31 to 90 days past due 91 to 120 days past due 121 days to a year past due Over a year past due	December 31, 2022	December 31, 2022
	Gross Carrying Amount $ 3,609,369 108,785 86,405 5,456 7,839 2,104 $ 3,819,958	Weighted Average Loss Rate 0% 0% 0% 0% 25.23%~49.96% 100% June 30, 2022	Loss Allowance Provision
			- - - - 3,244 2,104
			5,348
	Gross Carrying Amount $ 3,294,599 176,710 68,411 27,189 7,720 1,395 $ 3,576,024	Weighted Average Loss Rate 0% 0% 0% 0%~13.5% 35.48%~43.37% 100%	Loss Allowance Provision
			- - - 488 3,320 1,395
			5,203

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

Balance on January 1 Amounts written off Impairment losses recognized Foreign exchange (gains) losses Balance on June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ 5,348 (510) 1,156 (109) $ 5,885	2022
		3,764 - 1,372 67
		5,203

The financial assets mentioned above were not pledged as collateral.

(Continued)

15

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

(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, 2023 $ 190,594 268,147 120,012 1,129,912 147,832 5,975,403 1,270,856 13,496,911 64,570 62,356 $ 22,726,593	December 31, 2022 231,287 335,389 151,676 1,486,432 138,209 8,551,179 164,881 10,573,140 226,765 187,255 22,046,213	June 30, 2022
			267,840 295,825 140,612 1,639,377 101,633 8,190,842 310,399 9,130,395 427,896 214,601
			20,719,420

• (i) For the three months and six months ended June 30, 2023 and 2022, the cost of goods sold amounted to $3,570,941 thousand, $2,488,696 thousand, $5,888,099 thousand and $5,980,279 thousand, respectively. For the three months and six months ended June 30, 2023 and 2022, the reversal gain (loss for inventory obsolescence) from the increase (decrease) in inventories' net realizable value amounted to $21,802 thousand, $(15,794) thousand, $6,586 thousand and $(6,981) thousand, respectively.

• (ii) For the information on inventories pledged as collateral, as of June 30, 2023, December 31 and June 30, 2022, please refer to Note 8.

• (iii) For the six months ended June 30, 2023 and 2022, the capitalized interest expense recognized in the inventory amounted to $52,692 thousand and $28,554 thousand, respectively. The interest rate of capitalization were 2.40%~2.58% and 1.68%~1.87%, respectively.

• (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, 2023 $ 349,528 306,916 $ 656,444	December 31, 2022 391,050 316,929 707,979	June 30, 2022
			466,215 326,997
			793,212

(Continued)

16

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

(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, 2023 and 2022, the unrealized investment losses amounted to $66 thousand, $71 thousand, $201 thousand and $144 thousand, respectively; the accumulated unrealized investment losses, as of June 30, 2023 and 2022, amounted to $58,329 thousand and $57,912 thousand, respectively.

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

June 30, 2023 December 31, 2022 June 30, 2022 Carrying amount of individually insignificant associates' equity $ 349,528 391,050 466,215 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Attributable to the Group: Net (loss) income $ (6,133) 2,843 (12,625) 3,669 Other comprehensive income - - - - Comprehensive income $ (6,133) 2,843 (12,625) 3,669	June 30, 2023 December 31, 2022 June 30, 2022 Carrying amount of individually insignificant associates' equity $ 349,528 391,050 466,215 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Attributable to the Group: Net (loss) income $ (6,133) 2,843 (12,625) 3,669 Other comprehensive income - - - - Comprehensive income $ (6,133) 2,843 (12,625) 3,669	June 30, 2022	June 30, 2022
		466,215
	2023 (12,625) - (12,625)		2022 3,669 -
			3,669

(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, 2023 December 31, 2022 June 30, 2022 Carrying amount of individually insignificant joint ventures' equity $ 306,916 316,929 326,997 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Attributable to the Group: Net loss $ (9,623) (28,193) (11,364) (38,282) Other comprehensive income - - - - Comprehensive income $ (9,623) (28,193) (11,364) (38,282)	June 30, 2023 December 31, 2022 June 30, 2022 Carrying amount of individually insignificant joint ventures' equity $ 306,916 316,929 326,997 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Attributable to the Group: Net loss $ (9,623) (28,193) (11,364) (38,282) Other comprehensive income - - - - Comprehensive income $ (9,623) (28,193) (11,364) (38,282)	June 30, 2022	June 30, 2022
		326,997
	2023 (11,364) - (11,364)
			(38,282)

(Continued)

17

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

• (iii) Pledge to secure

As of June 30, 2023, December 31 and June 30, 2022, 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, 2023 and 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

(g) Property, plant and equipment

The cost and accumulated depreciation of the property, plant equipment of the Group for the six months ended June 30, 2023 and 2022 are as follows:

Cost: Balance on January 1, 2023 Additions Disposals Reclassification Influence from exchange rates Balance on June 30, 2023		Land		Buildings	Machinery 10,056,387 45,130 (53,492) 308,011 (269,067) 10,086,969	Office Equipment 124,071 6,121 (2,544) 3,897 (1,765) 129,780	Transportation Equipment 58,909 81 (3,758) 3,210 (1,335) 57,107	Leasehold Improvement 261,248 9,355 (6,777) - (7,386) 256,440	Other Equipment 868,402 11,534 (6,376) 74,906 (13,731) 934,735		Construction in Progress	Total 19,832,225 294,743 (72,947) 38,796 (398,440)
				4,332,425 1,777 - 69,187 (95,327) 4,308,062							1,001,199 220,745 - (420,415) (9,947) 791,582
												19,694,377

(Continued)

18

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

Balance on January 1, 2022 Additions Disposals Reclassification Influence from exchange rates Balance on June 30, 2022 Accumulated depreciation and impairment loss Balance on January 1, 2023 Depreciation Disposals Reclassification Influence from exchange rates Balance on June 30, 2023 Balance on January 1, 2022 Depreciation Disposals Reclassification Influence from exchange rates Balance on June 30, 2022 Carrying value: Balance on January 1, 2023 Balance on June 30, 2023 Balance on January 1, 2022 Balance on June 30, 2022		Land		Buildings	Machinery 9,750,106 58,928 (113,407) 100,573 199,644 9,995,844 6,707,455 288,342 (49,764) 4,986 (183,630) 6,767,389 6,255,051 282,071 (106,876) - 130,213 6,560,459 3,348,932 3,319,580 3,495,055 3,435,385	Office Equipment 110,803 10,800 (649) 48,640 1,625 171,219 94,942 6,616 (2,327) - (1,340) 97,891 85,183 6,538 (338) - 1,399 92,782 29,129 31,889 25,620 78,437	Transportation Equipment 58,719 - (2,524) 2,081 535 58,811 49,322 2,068 (3,665) - (1,106) 46,619 45,545 2,506 (2,514) 2,081 431 48,049 9,587 10,488 13,174 10,762	Leasehold Improvement 187,845 5,617 (9,507) 50,602 4,845 239,402 115,819 22,748 (6,777) - (3,699) 128,091 89,124 22,635 (9,506) - 2,258 104,511 145,429 128,349 98,721 134,891	Other Equipment 729,889 9,340 (14,424) 57,140 8,932 790,877 578,624 43,013 (6,061) - (9,380) 606,196 512,370 37,574 (13,748) 133 6,535 542,864 289,778 328,539 217,519 248,013	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 1,675,417 62,701 - - (32,007) 1,706,111 1,539,755 59,937 - - 22,498 1,622,190 2,657,008 2,601,951 2,300,365 2,447,802						1,321,500 167,018 - (356,990) 26,624
										1,158,152	19,613,585
										- - - - -	9,221,579 425,488 (68,594) 4,986 (231,162)
										-	9,352,297
										- - - - -	8,527,028 411,261 (132,982) 2,214 163,334
										-	8,970,855
										1,001,199	10,610,646
										791,582	10,342,080
										1,321,500	10,590,049
										1,158,152	10,642,730

As of June 30, 2023, December 31 and June 30, 2022, 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.

(h) 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, 2023 and 2022 are as follows:

Cost: Balance on January 1, 2023 Additions Reduction for expiration Influence from exchange rates Balance on June 30, 2023 Balance on January 1, 2022 Additions Reduction for expiration Influence from exchange rates Balance on June 30, 2022	Land $ 1,010,225 - - (10,127) $ 1,000,098 $ 1,004,772 - - 7,791 $ 1,012,563	Buildings 2,401,476 1,142 (2,327) (247) 2,400,044 2,393,697 8,840 (658) 19 2,401,898	Machinery 33,287 - (7,016) (686) 25,585 47,835 17,588 (34,022) 862 32,263	Transportation Equipment 22,150 4,587 (2,023) (5) 24,709 23,183 1,508 (2,839) 61 21,913	Office Equipment 1,762 428 (605) 4 1,589 2,046 - (344) 40 1,742	Other Equipment 120,670 - - - 120,670 122,673 - - - 122,673	Total 3,589,570 6,157 (11,971) (11,061)
							3,572,695
							3,594,206 27,936 (37,863) 8,773
							3,593,052

(Continued)

19

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

Accumulated depreciation: Balance on January 1, 2023 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on June 30, 2023 Balance on January 1, 2022 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on June 30, 2022 Carrying value: Balance on January 1, 2023 Balance on June 30, 2023 Balance on January 1, 2022 Balance on June 30, 2022	Land $ 202,927 11,794 - - (3,013) $ 211,708 $ 177,882 11,810 - - 2,090 $ 191,782 $ 807,298 $ 788,390 $ 826,890 $ 820,781	Buildings 1,478,153 81,665 214 (2,327) (117) 1,557,588 1,317,008 81,492 421 (658) 3 1,398,266 923,323 842,456 1,076,689 1,003,632	Machinery 20,424 2,589 - (7,016) (429) 15,568 39,869 7,319 - (34,022) 719 13,885 12,863 10,017 7,966 18,378	Transportation Equipment 8,676 3,211 - (1,156) (1) 10,730 7,254 2,977 - (2,839) 29 7,421 13,474 13,979 15,929 14,492	Office Equipment 1,068 170 - (605) (4) 629 966 221 - (344) 32 875 694 960 1,080 867	Other Equipment 18,973 1,571 - - - 20,544 17,466 1,772 - - - 19,238 101,697 100,126 105,207 103,435	Total 1,730,221 101,000 214 (11,104) (3,564)
							1,816,767
							1,560,445 105,591 421 (37,863) 2,873
							1,631,467
							1,859,349
							1,755,928
							2,033,761
							1,961,585

(i) 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.

The movements in the investment property is as follows:

Carrying value: Balance on January 1, 2023 Balance on June 30, 2023 Balance on January 1, 2022 Balance on June 30, 2022	Owned Property Land Buildings $ 596,723 66,663 $ 596,723 65,421 $ 609,567 97,107 $ 596,723 67,906	Total
	Land $ 596,723 $ 596,723 $ 609,567 $ 596,723
		663,386
		662,144
		706,674
		664,629

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(r) for the regarding information.

(Continued)

20

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

Information on depreciation for the six months ended June 30, 2023 and 2022 is discussed in Note 12(c), and for the information on rental revenue and other direct operating expense, please refer to Note 6(r).

The fair value of the investment property was not signficantly different from those disclosed in the Note 6(j) of the consolidated financial statements for the year ended December 31, 2022.

As of June 30, 2023, December 31 and June 30, 2022, the details of investment properties pledged as collateral, please refer to Note 8.

(j) Intangible assets

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

Cost: Balance on January 1, 2023 Influence from exchange rates Balance on June 30, 2023 Balance on January 1, 2022 Influence from exchange rates Balance on June 30, 2022 Accumulated amortization: Balance on January 1, 2023 Amortization Influence from exchange rates Balance on June 30, 2023 Balance on January 1, 2022 Amortization Influence from exchange rates Balance on June 30, 2022 Carrying value: Balance on January 1, 2023 Balance on June 30, 2023 Balance on January 1, 2022 Balance on June 30, 2022	Goodwill $ 414,417 (5,061) $ 409,356 $ 385,268 14,159 $ 399,427 $ - - - $ - $ - - - $ - $ 414,417 $ 409,356 $ 385,268 $ 399,427	Patent 64,105 (1,889) 62,216 63,088 1,453 64,541 64,105 - (1,889) 62,216 63,088 - 1,453 64,541 - - - -	Client Relationship 231,424 (6,822) 224,602 227,751 5,248 232,999 231,424 - (6,822) 224,602 227,751 - 5,248 232,999 - - - -	Computer Software 46,300 46 46,346 43,337 220 43,557 33,971 2,375 46 36,392 28,061 2,778 220 31,059 12,329 9,954 15,276 12,498	Total 756,246 (13,726) 742,520 719,444 21,080 740,524 329,500 2,375 (8,665) 323,210 318,900 2,778 6,921 328,599 426,746 419,310 400,544 411,925

(Continued)

21

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

(k) 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, 2023 $ 575,000 23,250 (23,250) 115,442 $ 690,442	December 31, 2022 575,000 23,250 (23,250) 111,862 686,862	June 30, 2022 575,000 23,250 (23,250) 111,732 686,732

• (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 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, 2023

				June 30, 2023
Underlying	Obligation Cost		Obligation Principal	Valuation Assessment Collateral According to the assessment of Colliers International Real Estate Appraiser Joint Office, the valuation of mortgage is $8,453,706 thousand. After deducting the 1st security, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $2,246,853 thousand. The building of The Splendor Hospitality International (the 2nd security)
The Splendor Hospitality International	$ 575,000		796,845

(Continued)

22

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

Underlying					December 31, 2022 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) June 30, 2022 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)
	Obligation Cost			Obligation Principal
The Splendor Hospitality International Underlying	$ 575,000			796,845
		Obligation Cost		Obligation Principal
The Splendor Hospitality International	$ 575,000			796,845

• (ii) As of June 30, 2023, December 31 and June 30, 2022, the cost and principal of debt obligation from Chin Ling Steel were $23,250 thousand and $118,561 thousand, respectively.

• (l) Other non-current assets

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

Construction in progress Land Other	June 30, 2023 $ 2,913,122 44,299 94,594 $ 3,052,015	December 31, 2022 2,681,197 44,299 86,067 2,811,563	June 30, 2022
			2,505,764 44,299 197,236
			2,747,299

(i) The construction in progress is the development of land and shopping mall of the Group, please refer to Note 9(a), (viii) 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.

(Continued)

23

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

• (iii) For the six months ended June 30, 2023 and 2022, the capitalized interest expense recognized in other non-current assets amounted to $15,500 thousand and $8,273 thousand, respectively. The interest rate of capitalization were 2.38%~2.50% and 1.90%, respectively.

(m) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Notes and bills payable Total Unused credit limit Range of interest rates	June 30, 2023 $ 4,183,422 7,072,326 149,989 $ 11,405,737 $ 6,572,337 1.75%~6.73%	December 31, 2022 5,265,681 5,802,116 514,820 11,582,617 7,500,727 1.64%~6.20%	June 30, 2022
			4,483,944 5,208,126 564,855
			10,256,925
			7,628,680
			0.89%~4.25%

• (i) Borrowing and repayment

For the six months ended June 30, 2023 and 2022, the Group obtained from short-term borrowings amounting to $4,925,845 thousand and $6,630,748 thousand with an interest rate of 1.75% ～ 6.73% and 0.52% ～ 4.25%; the repayment amounting to $4,676,900 thousand and $5,629,501 thousand, respectively. Please refer to Note 6(y) 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.

• (n) 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, 2023 $ 2,050,000 7,984,643 (742,775) (29) $ 9,291,839 $ 1,278,486 1.66%~5.63%	December 31, 2022 2,600,000 8,327,315 (2,470,335) (29) 8,456,951 712,939 1.40%~5.96%	June 30, 2022 2,000,000 6,502,369 (542,995) (181) 7,959,193 2,280,336 1.18%~2.17%

(i) Borrowing and repayment

For the six months ended June 30, 2023 and 2022, the Group obtained from long-term borrowings amounting to $3,400,000 thousand and $3,000,000 thousand with an interest rate of 1.66% ～ 2.55% and 1.02% ～ 1.58%; the repayment amounting to $4,296,030 thousand and $6,718,800 thousand, respectively. Please refer to Note 6(y) for details of the interest expense.

(Continued)

24

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

(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, 2023, 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 2022 and 2021 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, 2022, the Group was in compliance with the above borrowing covenants.

(o) 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")	June 30, 2023 $ 1,499,900 45,246 $ 1,545,146 $ 165 $ 48,559	December 31, 2022 1,500,000 60,633 1,560,633 8,253 48,562	June 30, 2022 1,500,000 76,170
			1,576,170
			6,933
			48,562

(Continued)

25

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

Embedded derivative-losses on remeasurements through fair value (which is listed under "other gains and losses") Interest expense	For the Three Months Ended June 30 2023 2022 $ 660 (2,311) $ (7,673) (7,827)	For the Six Months Ended June 30 2023 2022 8,088 (2,641) (15,384) (15,692)
	2023 $ 660 $ (7,673)	2023 8,088 (15,384)

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.

• (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 2023, The conversion price had been adjusted from $32.0 per share to $31.0 per share on July 23, 2023 (exdividends date).

(Continued)

26

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

• (vii) As of June 30, 2023, the holders had converted the bonds with a face value of $100 thousand into 3,125 ordinary shares of the Company at a conversion price of $32.0 per share.

(p) Lease liabilities

The details of the lease liabilities are as follows:

Current Non-current	June 30, 2023 $ 193,659 $ 1,384,015	December 31, 2022 188,005 1,479,111	June 30, 2022
			188,872
			1,570,052

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

The amounts recognized in profit or loss are as follows:

Interest on lease liabilities Expenses relating to leases short-term assets	For the Three Months Ended June 30 2023 2022 $ 5,160 5,831 $ 2,107 2,069	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ 5,160 $ 2,107	2023 10,461 4,272	2022
			11,782
			4,210

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
	2023 $ 109,171	2022
		113,161

• (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.

(Continued)

27

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

(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.

(q) Provisions

Non-current: Financial guarantee contracts Legal Total	June 30, 2023 $ 3,329 236,052 $ 239,381	December 31, 2022 9,112 236,052 245,164	June 30, 2022
			15,755 236,052
			251,807

(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.

(r) 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(i) 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:

Less than one year One to two years Two to three years Total undiscounted lease payments	June 30, 2023 $ 13,518 2,933 2,016 $ 18,467		December 31, 2022	June 30, 2022 10,242 5,213 - 15,455
			14,247 5,664 - 19,911

(Continued)

28

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

For the three months and six months ended June 30, 2023 and 2022, rental revenues from investment properties amounted to $3,235 thousand, $3,256 thousand, $6,494 thousand and $6,673 thousand, respectively. The equipment and maintenance costs arising from the investment properties (recognized under "operating costs") are $0 thousands.

(s) 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, 2022 and 2021.

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

Operating cost Selling expenses Administration expenses Total	For the Three Months Ended June 30 2023 2022 $ - 13 - 3 59 21 $ 59 37	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ - - 59 $ 59	2023 - - 1,173 1,173	2022
			25 5 40
			70

(ii) Defined contribution plans

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

follows:
Operating cost Selling expenses Administration expenses Research and development expenses Total	For the Three Months Ended June 30 2023 2022 $ 11,897 12,401 701 662 8,208 7,993 101 91 $ 20,907 21,147	For the Six Months Ended June 30
	2023 $ 11,897 701 8,208 101 $ 20,907	2023 24,288 1,378 17,938 204 43,808	2022
			24,671 1,301 15,884 182
			42,038

(iii) Short-term employee benefits

Paid leave and other liabilities	June 30, 2023 $ 9,208	December 31, 2022 11,190	June 30, 2022
			11,066

(Continued)

29

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

(t) 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 expense (benefit)	For the Three Months Ended June 30 2023 2022 $ 41,926 (8,283) 16,690 1,749 16,189 14,697 722 (623) 75,527 7,540 3,057 (82,996) $ 78,584 (75,456)	For the Six Months Ended June 30 2023 2022 59,983 44,439 16,690 21,922 16,189 14,697 (10,678) (466) 82,184 80,592 (5,568) (94,013) 76,616 (13,421)
	2023 $ 41,926 16,690 16,189 722 75,527 3,057 $ 78,584	2023 59,983 16,690 16,189 (10,678) 82,184 (5,568) 76,616

(iii) The income tax returns of the Company as well as the other domestic consolidated subsidiaries had been assessed and approved by the Tax Authority through 2021. 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.

(u) 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, 2023 and 2022. For the related information, please refer to Note 6(v) of the consolidated financial statements for the year ended December 31, 2022.

(i) Capital stock

As of June 30, 2023, December 31 and June 30, 2022, the Company’s authorized share capital are 5,000,000 thousands, with par value of $10 per share and the issued capital are $3,761,252 thousand, $3,761,221 thousand and $3,761,221 thousand respectively. All the proceeds from the issued capital have been remitted.

(Continued)

30

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

(ii) Capital surplus

The components of the capital surplus are as follows:

From issuance of share capital Employee stock option of subsidiaries Stock option of convertible bonds From conversion of convertible bonds Difference between consideration and carrying amount of subsidiaries acquired or disposed of	June 30, 2023 $ 611,348 33,352 48,559 843,035 6,219 $ 1,542,513	December 31, 2022 611,272 33,352 48,562 843,035 6,219 1,542,440	June 30, 2022
			611,272 33,352 48,562 843,035 5,941
			1,542,162

(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.

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 2022 and 2021 earnings was based on the resolutions decided during the meetings of the Board of Directors held on March 16, 2023 and March 30, 2022, respectively.

(Continued)

31

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

These earnings are appropriated as follows:

Common stock dividends per share Cash	2022 Allotment (NTD) Amount $ 1.20 451,347	2021	2021
	Allotment (NTD) $ 1.20	Allotment (NTD) 2.11	Amount
			793,618

(iv) Other equity (net of tax)

Balance on January 1, 2023 Profit attributable to non-controlling interests Exchange differences on foreign operations Unrealized losses 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, 2023 Balance on January 1, 2022 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, 2022	Exchange Differences on Translation of Foreign Financial Statements $ 10,196 - (255,261) - - - - $ (245,065) $ (25,292) - 120,256 - - - - $ 94,964	Unrealized Gains (Losses) from Financial Assets Measured at FVOCI 51,013 - - (3,212) - - 1,903 49,704 78,077 - - (17,766) - - (173) 60,138	Non-controlling Interest 3,827,949 135,480 (50,982) - (48) (126,382) - 3,786,017 3,973,038 123,255 34,381 1 (1,544) (311,854) - 3,817,277	Total 3,889,158 135,480 (306,243) (3,212) (48) (126,382) 1,903
				3,590,656
				4,025,823 123,255 154,637 (17,765) (1,544) (311,854) (173)
				3,972,379

(v) Earnings per share

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

Basic earnings per share Profit attributable to owners of the parent Weighted average number of ordinary shares Basic earnings per share	For the Three Months Ended June 30 2023 2022 $ 322,291 92,432 376,124 376,122 $ 0.86 0.25	For the Six Months Ended June 30 2023 2022 298,152 438,713 376,124 376,122 0.79 1.17	For the Six Months Ended June 30 2023 2022 298,152 438,713 376,124 376,122 0.79 1.17
	2023 $ 322,291 376,124 $ 0.86	2023 298,152 376,124 0.79
			376,122
			1.17

(Continued)

32

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

Diluted earnings per share Profit attributable to owners of the parent (after the adjustment of diluted ordinary shares) Effect of potential diluted ordinary shares Convertible bonds Profit attributable to owners of the parent (after the adjustment of diluted ordinary shares) Weighted average number of ordinary shares Effect of potential diluted ordinary shares Employee stock option Convertible bonds Weighted average number of ordinary shares (after the adjustment of diluted ordinary shares) Diluted earnings per share	For the Three Months Ended June 30 2023 2022 $ 322,291 92,432 (6,798) (3,950) $ 315,493 88,482 376,124 376,122 246 357 48,384 43,133 424,754 419,612 $ 0.74 0.21	For the Six Months Ended June 30 2023 2022 298,152 438,713 (20,395) (9,913) 277,757 428,800 376,124 376,122 530 847 48,384 43,133 425,038 420,102 0.65 1.02
	2023 $ 322,291 (6,798) $ 315,493 376,124 246 48,384 424,754 $ 0.74	2023 298,152 (20,395) 277,757 376,124 530 48,384 425,038 0.65

(w) Revenue from contracts with customers

(i) Disaggregation of revenue

Major geographic markets: Taiwan United States Japan China Europe South America Others Major product/service lines: Iron casting hardware Construction Counter commissions Others	For the Three Months	For the Three Months	Ended June 30,	Ended June 30,	2023
	Metal Manufacturing Segment $ 76,321 508,538 418,404 1,339,306 130,458 23,593 136,496 $ 2,633,116 $ 2,625,428 - - 7,688 $ 2,633,116	Real Estate Development Segment		Lifestyle Hospitality Segment 149,627 - - - - - - 149,627 - - 104,736 44,891 149,627	Total
		1,878,797 - - - - - -			2,104,745 508,538 418,404 1,339,306 130,458 23,593 136,496
		1,878,797			4,661,540
		- 1,875,081 - 3,716			2,625,428 1,875,081 104,736 56,295
		1,878,797			4,661,540

(Continued)

33

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

Major geographic markets: Taiwan United States Japan China Europe South America Others Major product/service lines: Iron casting hardware Construction Counter commissions Others Major geographic markets: Taiwan United States Japan China Europe South America Others Major product/service lines: Iron casting hardware Construction Counter commissions Others	For the Three Months	For the Three Months	Ended June 30,	Ended June 30,	2022
	Metal Manufacturing Segment Real Estate Development Segment Lifestyle Hospitality Segment Total $ 138,028 162,453 127,367 427,848 484,018 - - 484,018 434,989 - - 434,989 1,227,548 - - 1,227,548 155,233 - - 155,233 163,164 - - 163,164 147,593 - - 147,593 $ 2,750,573 162,453 127,367 3,040,393 $ 2,732,704 - - 2,732,704 - 154,819 - 154,819 - - 82,175 82,175 17,869 7,634 45,192 70,695 $ 2,750,573 162,453 127,367 3,040,393 For the Six Months Ended June 30, 2023	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
	Metal Manufacturing Segment $ 146,550 975,121 923,635 2,673,251 257,256 56,536 304,743 $ 5,337,092 $ 5,319,925 - - 17,167 $ 5,337,092	Real Estate Development Segment		Lifestyle Hospitality Segment 313,083 - - - - - - 313,083 - - 213,761 99,322 313,083	Total
		1,882,537 - - - - - -			2,342,170 975,121 923,635 2,673,251 257,256 56,536 304,743
		1,882,537			7,532,712
		- 1,875,081 - 7,456			5,319,925 1,875,081 213,761 123,945
		1,882,537			7,532,712

(Continued)

34

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

			For the	For the	Six	Months Ended June 30,	Months Ended June 30,	Months Ended June 30,	Months Ended June 30,	2022
			Metal		Real Estate			Lifestyle
		Manufacturing		Development				Hospitality
		Segment			Segment			Segment		Total
Major geographic markets:
	Taiwan	$	297,567			1,566,625			291,115	2,155,307
	United States		947,247			-			-	947,247
	Japan		861,172			-			-	861,172
	China		2,755,120			-			-	2,755,120
	Europe		274,736			-			-	274,736
	South America		326,484			-			-	326,484
	Others		315,859			-			-	315,859
		$	5,778,185			1,566,625			291,115	7,635,925
Major product/service lines:
	Iron casting hardware	$	5,742,310			-			-	5,742,310
	Construction		-			1,558,991			-	1,558,991
	Counter commissions		-			-			181,230	181,230
	Others		35,875				7,634		109,885	153,394
		$	5,778,185			1,566,625			291,115	7,635,925
)	Contract balances
			June	30,			December		31,	June 30,
			2023					2022		2022
	Notes and accounts receivable		$ 3,392,657					3,819,958		3,576,024
	Less: Loss allowance				(5,885)			(5,348)		(5,203)
	Total		$ 3,386,772					3,814,610		3,570,821
	Contract assets		$ -					-		-
	Contract liabilities–Advance real		$ 5,892,113					4,825,091		4,162,703
	estate receipts
	Contract liabilities–Advance receipts		$		39,409			39,625		28,671

(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, 2023 and 2022, that were included in the contract liabilities balance at the beginning of the period were $357,128 thousand and $345,589 thousand, respectively.

(Continued)

35

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.

(x) 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, 2023 and 2022, appropriated employees’ compensation by $8,940 thousand, $332 thousand, $8,940 thousand and $11,386 thousand, respectively, and appropriated remuneration of directors by $7,982 thousand, $297 thousand, $7,982 thousand and $10,166 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, 2022 and 2021, appropriated employees’ compensation by $19,953 thousand and $34,016 thousand, respectively, and appropriated remuneration of directors by $17,815 thousand and $30,371 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)

36

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

(y) Non-operating income and expenses

(i) Interest income

The information on interest income is listed as follows:

Interest income from bank deposits Interest income from financial guarantee contracts Total Interest income	For the Three Months Ended June 30 2023 2022 $ 19,346 4,656 3,577 3,512 $ 22,923 8,168	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ 19,346 3,577 $ 22,923	2023 33,120 7,135 40,255	2022
			8,943 7,016
			15,959

(ii) Other income

The information on other income is listed as follows:

Rental revenue Dividend income Others Total other income	For the Three Months Ended June 30 2023 2022 $ 5,580 5,144 14,487 16,341 51,294 18,797 $ 71,361 40,282	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ 5,580 14,487 51,294 $ 71,361	2023 11,485 14,527 84,566 110,578	2022
			9,896 16,341 36,853
			63,090

• (iii) Other gains and losses

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

Losses on disposal of property, plant and equipment Lease modification gains Foreign exchange gains Gains (losses) on financial assets at FVTPL Other losses Net amount of other gains and losses	For the Three Months Ended June 30 2023 2022 $ (2,630) (2,427) 1 - 26,294 28,245 660 (2,311) (247) (187) $ 24,078 23,320	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ (2,630) 1 26,294 660 (247) $ 24,078	2023 (3,198) 4 20,638 8,088 (360) 25,172	2022
			(4,623) - 50,639 (2,641) (429
			42,946

(Continued)

37

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:

Borrowing interest expense Lease liability interest expense Capitalized interest expense Bonds interest expense Amortized long term borrowings costs Net amount of finance costs	For the Three Months Ended June 30 2023 2022 $ 143,072 83,653 5,160 5,831 (40,238) (19,928) (7,673) (7,827) 256 408 $ 100,577 62,137	For the Six Months Ended June 30 2023 2022 279,486 153,683 10,461 11,782 (68,192) (36,827) (15,384) (15,692) 507 840 206,878 113,786
	2023 $ 143,072 5,160 (40,238) (7,673) 256 $ 100,577	2023 279,486 10,461 (68,192) (15,384) 507 206,878

(z) Financial instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to Note 6(aa) of the consolidated financial statements for the year ended December 31, 2022.

(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, 2023 and 2022, please refer to Note 6(c).

(Continued)

38

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, 2023 Non-derivative financial liabilities Bank borrowings $ 22,201,020 Bonds payable 1,499,900 Lease liabilities 1,772,624 Notes and accounts payables (including related parties) 3,052,081 Other payables (including related parties) 1,856,456 $ 30,382,081 December 31, 2022 Non-derivative financial liabilities Bank borrowings $ 23,338,560 Bonds payable 1,500,000 Lease liabilities 1,872,314 Notes and accounts payables (including related parties) 3,070,242 Other payables (including related parties) 1,383,980 $ 31,165,096 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	Within 6 Months 7,058,928 - 105,282 3,052,081 1,856,456 12,072,747 6,931,888 - 103,927 3,070,242 1,383,980 11,490,037 6,089,687 - 107,462 2,888,941 2,186,773 11,272,863	6-12 Months 1,147,094 - 107,356 - - 1,254,450 4,608,521 - 104,298 - - 4,712,819 2,599,371 - 102,932 - - 2,702,303	1-2 Years 7,246,063 1,499,900 208,972 - - 8,954,935 6,306,770 - 211,734 - - 6,518,504 7,070,188 - 208,823 - - 7,279,011	2-5 Years 4,792,487 - 602,575 - - 5,395,062 3,524,426 1,500,000 603,892 - - 5,628,318 3,392,248 1,500,000 607,570 - - 5,499,818	Over 5 Years
					1,956,448 - 748,439 - -
					2,704,887
					1,966,955 - 848,463 - -
					2,815,418
					- - 948,375 - -
					948,375

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

(Continued)

39

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:

F	inancial assets Monetary items USD:NTD USD:CNY USD:JPY EUR:NTD EUR:CNY JPY:NTD JPY:CNY HKD:NTD HKD:USD inancial liabilities Monetary items USD:CNY EUR:CNY HKD:USD	June 30, 2023 Foreign Currency Exchange Rate NTD $ 9,105 31.14 283,536 33,637 7.28 1,047,451 861 144.84 26,805 1,397 33.81 47,238 2,273 7.90 76,851 196,915 0.22 42,337 39,509 0.05 8,495 16,053 3.97 63,731 9,363 0.13 37,173 26,174 7.28 815,049 1,995 7.90 67,465 167,520 0.13 665,054	De	cember 31, 2022 Exchange Rate NTD 30.71 512,530 6.96 4,290,482 132.14 38,723 32.72 36,390 7.42 100,989 0.23 22,665 0.05 13,873 3.94 210 0.13 33,283 6.96 907,911 7.42 65,290 0.13 865,370		June 30, 2022
			Foreign Currency 16,689 139,710 1,261 1,112 3,086 97,524 59,696 53 8,448 29,564 1,995 219,637		Foreign Currency 17,377 137,845 1,081 1,625 3,003 173,593 169,828 53 2,985 150,377 2,695 263,784	Exchange Rate NTD 29.72 516,434 6.69 4,096,740 136.21 32,117 31.05 50,470 6.99 93,241 0.22 37,878 0.05 37,056 3.79 203 0.13 11,311 6.69 4,469,190 6.99 83,693 0.13 999,741
F

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, 2023 and 2022 would have increased (decreased) the after-tax net income for the three months and six months ended June 30, 2023 and 2022 by $237 thousand, $1,737 thousand, $344 thousand and $2,709 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, 2023 and 2022, the foreign exchange gains (losses), including both realized and unrealized, amounted to $26,294 thousand, $28,245 thousand, $20,638 thousand and $50,639 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.

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.

(Continued)

40

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

If the interest rate increases or decreases by 1% the Group’s net income will increase /decrease by $48,052 thousand, $22,727 thousand, $69,776 thousand and $43,833 thousand for the three months and six months ended June 30, 2023 and 2022, 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:

Increase 10% Decrease 10%	For the Six Months Ended June 30 2023 2022 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 19,615 (17) 15,234 (693) $ (19,615) 17 (15,234) 693	For the Six Months Ended June 30 2023 2022 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 19,615 (17) 15,234 (693) $ (19,615) 17 (15,234) 693
	2023 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 19,615 (17) $ (19,615) 17
	Other Comprehensive Income (net of tax) $ 19,615 $ (19,615)	Other Comprehensive Income (net of tax) 15,234 (15,234)

• (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:

Non-current financial assets at FVOCI Non-current financial liabilities at FVTPL Financial assets measured at amortized cost Financial liabilities measured at amortized cost		June 30, 2023	June 30, 2023	June 30, 2023
	Book Value $ 196,151 $ 165 $ 11,535,348 $ 29,498,816		Fair Value
		Level 1 - - - -	Level 2 - - - -	Level 3 196,151 165 - -	Total
					196,151
					165
					-
					-

(Continued)

41

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

Non-current financial assets at FVOCI Non-current financial liabilities at FVTPL Financial assets measured at amortized cost Financial liabilities measured at amortized cost Non-current financial assets at FVOCI Non-current financial liabilities at FVTPL Financial assets measured at amortized cost Financial liabilities measured at amortized cost		December 31, 2022	December 31, 2022	December 31, 2022
	Book Value $ 179,363 $ 8,253 $ 12,551,986 $ 30,216,965		Fair Value
		Level 1 Level 2 - - - - - - - - June 30, 2022		Level 3 179,363 8,253 - -	Total
					179,363
					8,253
					-
					-
	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
					-
					-

• 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.

(Continued)

42

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

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.

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, 2023 and 2022.

• 4) Reconciliation of Level 3 instruments

Balance on January 1, 2023 Purchase Total gains or losses Recognized as other comprehensive income Balance on June 30, 2023 Balance on January 1, 2022 Disposals Total gains or losses Recognized as other comprehensive income Capital reduction Balance on June 30, 2022	Non-current Financial Assets at FVOCI Equity Instrument without Quoted Price $ 179,363 20,000 (3,212) $ 196,151 $ 215,295 (37,190) (17,763) (8,000) $ 152,342

(Continued)

43

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

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, 2023 and 2022 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 2023 2022 $ - (11,967)	For the Six Months Ended June 30 2023 2022 (3,212) (17,763)
	2023 $ -	2023 (3,212)

• 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, 2023, December 31, 2022 and June 30, 2022,were $251~18,916 thousand, $251~23,510 thousand and $251~23,510 thousand respectively.) ‧The estimated fair value would increase, if the 5- year average expected future dividend income is increased.
Financial assets at FVOCI equity investments without active market

(Continued)

44

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

Item	Valuation Technique	Significant Unobservable Inputs Inter-relationship between Significant Unobservable Inputs and Fair Value Measurement ‧Weighted average capital cost (As of June 30, 2023, December 31, 2022 and June 30, 2022, were 3.63%, 4.68% and 4.29%, respectively.) ‧Discounting rate without market liquidity (As of June 30, 2023, December 31, 2022 and June 30, 2022,were both 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.

• 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, 2023 Financial assets at FVOCI Equity investments without an active market December 31, 2022 Financial assets at FVOCI Equity investments without an active market June 30, 2022 Financial assets at FVOCI Equity investments without an active market	Inputs % 3.63 % 4.68 % 4.29	Fluctuation in Inputs 1% 1% 1%	Other Comprehensive Income Favorable Unfavorable 5,272 (5,004) 5,427 (5,158) 5,580 (5,302)

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.

(aa) 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, 2022.

(Continued)

45

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

(ab) 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, 2022. Also, management believes that there were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2022. Please refer to Note 6 (ac) of the consolidated financial statements for the year ended December 31, 2022 for further details.

(ac) 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, 2023 and 2022, were as follows:

Reconciliation of assets arising from investing activities were as follows:

Other non-current assets Other non-current assets	January 1, 2023 $ 2,811,563 January 1, 2022 $ 2,106,431	Cash flows 276,236 Cash flows 705,396	Non-cash changes Reclassification (35,784) Non-cash changes Reclassification (64,528)	June 30, 2023
				3,052,015
				June 30, 2022
				2,747,299

(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.

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

(Continued)

46

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

Name of Related Party

Fuzhou Aprec Mechanical and Electrical Co., Ltd. (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) Hao Bao Investment Co., Ltd. (Hao Bao Investment) Rui Hua Investment Co., Ltd. (Rui Hua Investment) LEESCO Development Co. Ltd. (LEESCO Development) Gee Lien Resource Development Corp. (Gee Lien Resource) Yi-Shi Investment Corporation (Yi-Shi) Mr. Ming Shiann, Ho Mr.Dai Jun, Lin Mr. Ting Fung, Lin

Relationship with the Group Subsidiaries of subsidiaries' associates

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

Associates Joint ventures Other related parties	Sales For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 $ 1,202 1,505 3,190 4,235 114 - 114 279 229 778 356 1,174 $ 1,545 2,283 3,660 5,688	Sales For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 $ 1,202 1,505 3,190 4,235 114 - 114 279 229 778 356 1,174 $ 1,545 2,283 3,660 5,688	Notes and June 30, 2023 6,616 1 235 6,852	Accounts Receivables	Accounts Receivables
	For the Three Months Ended June 30 2023 2022 $ 1,202 1,505 114 - 229 778 $ 1,545 2,283			December 31, 2022 8,973 - 190 9,163	June 30, 2022
	2023	2023 3,190 114 356 3,660
	$ 1,202 114 229 $ 1,545				4,853 - 270
					5,123

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:

Other related parties	Revenue recognized For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 $ - - - -	Revenue recognized For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 $ - - - -	Advance real estate receipts June 30, 2023 December 31, 2022 June 30, 2022 105,740 83,245 73,601	Advance real estate receipts June 30, 2023 December 31, 2022 June 30, 2022 105,740 83,245 73,601	Advance real estate receipts June 30, 2023 December 31, 2022 June 30, 2022 105,740 83,245 73,601
	For the Three Months Ended June 30 2023 2022 $ - -			December 31, 2022 83,245	June 30, 2022
	2023	2023 -
	$ -				73,601

(Continued)

47

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

As of June 30, 2023 and 2022, the total contract price of real estate in contract with related parties mentioned above are $302,920 thousand (tax included), repectively. The terms and pricing of sales transactions with related parties were not significantly different from those with the third parties.

(ii) Purchases from related parties

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

Associates Joint ventures Other related parties	Purchases For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 $ 30,582 23,876 60,543 44,435 2,390 6 2,393 8 2,746 - 2,751 17 $ 35,718 23,882 65,687 44,460	Purchases For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 $ 30,582 23,876 60,543 44,435 2,390 6 2,393 8 2,746 - 2,751 17 $ 35,718 23,882 65,687 44,460	Notes and Accounts Payable	Notes and Accounts Payable	Notes and Accounts Payable
	For the Three Months Ended June 30 2023 2022 $ 30,582 23,876 2,390 6 2,746 - $ 35,718 23,882		June 30, 2023 32,998 3 3,332 36,333	December 31, 2022 39,603 - 698 40,301	June 30, 2022
	2023	2023 60,543 2,393 2,751 65,687
	$ 30,582 2,390 2,746 $ 35,718				26,540 - 716
					27,256

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:

Other related parties: Mr. Ming Shiann, Ho Others	Rental Expenses	Rental Expenses	Rental Expenses
	For the Three Months Ended June 30 2023 2022 $ 608 608 - 136 $ 608 744	For the Six Months Ended June 30
	2023 $ 608 - $ 608	2023 1,216 - 1,216	2022
			1,216 296
			1,512

Joint rentures Other related parties	Guarantee Deposit Paid (Recognized under other non-current financial assets)	Guarantee Deposit Paid (Recognized under other non-current financial assets)	Guarantee Deposit Paid (Recognized under other non-current financial assets)
	June 30, 2023 $ - 443 $ 443	December 31, 2022 - 443 443	June 30, 2022
			10 443
			453

(Continued)

48

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:

Associates Other related parties Associates	Rental Revenues	Rental Revenues	Rental Revenues	Rental Revenues	Rental Revenues	Rental Revenues	Rental Revenues
	For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 $ 65 66 131 131 15 219 30 540 $ 80 285 161 671 Guarantee Deposit Received (Recognized under other non-current liabilities) June 30, 2023 December 31, 2022 June 30, 2022 $ 300 300 300						For the Six Months Ended June 30
			2023
	$ $
			June 30, 2023 $ 300		December 31, 2022 300

• (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 Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Associates $ - 75 - 150 Joint ventures 1,164 1,163 2,149 2,308 $ 1,164 1,238 2,149 2,458 Non-performing receivables Total Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 796,845 796,845 796,845 Costs of Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 575,000 575,000 575,000	Service Revenues For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Associates $ - 75 - 150 Joint ventures 1,164 1,163 2,149 2,308 $ 1,164 1,238 2,149 2,458 Non-performing receivables Total Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 796,845 796,845 796,845 Costs of Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 575,000 575,000 575,000	Service Revenues For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Associates $ - 75 - 150 Joint ventures 1,164 1,163 2,149 2,308 $ 1,164 1,238 2,149 2,458 Non-performing receivables Total Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 796,845 796,845 796,845 Costs of Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 575,000 575,000 575,000	Service Revenues For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Associates $ - 75 - 150 Joint ventures 1,164 1,163 2,149 2,308 $ 1,164 1,238 2,149 2,458 Non-performing receivables Total Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 796,845 796,845 796,845 Costs of Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 575,000 575,000 575,000	Service Revenues For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Associates $ - 75 - 150 Joint ventures 1,164 1,163 2,149 2,308 $ 1,164 1,238 2,149 2,458 Non-performing receivables Total Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 796,845 796,845 796,845 Costs of Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 575,000 575,000 575,000	Service Revenues For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Associates $ - 75 - 150 Joint ventures 1,164 1,163 2,149 2,308 $ 1,164 1,238 2,149 2,458 Non-performing receivables Total Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 796,845 796,845 796,845 Costs of Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 575,000 575,000 575,000	Service Revenues For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 Associates $ - 75 - 150 Joint ventures 1,164 1,163 2,149 2,308 $ 1,164 1,238 2,149 2,458 Non-performing receivables Total Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 796,845 796,845 796,845 Costs of Claims June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures: The Splendor Hospitality $ 575,000 575,000 575,000
	2023				2023 - 2,149 2,149 Total Claims	2022 150 2,308 2,458 June 30, 2022 796,845 June 30, 2022 575,000
			75 1,163 1,238
				December 31, 2022 796,845 Costs of Claims
					December 31, 2022 575,000

• (v) Non-performing receivables

(Continued)

49

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

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

(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	Borrowing Limits
	June 30, 2023 December 31, 2022 June 30, 2022 $ 1,900,000 1,900,000 2,000,000 22,500 22,500 22,500 $ 1,922,500 1,922,500 2,022,500 Actual Usage Amount		June 30, 2022
			2,000,000 22,500
			2,022,500
		December 31, 2022 1,475,000 13,948 1,488,948	June 30, 2022
			1,510,000 6,535
			1,516,535

• (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:

Other related parties	For the Three Months Ended June 30 2023 2022 $ 152 -	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ 152	2023 152	2022
			-

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

Other related parties	June 30, 2023 $ 344	December 31, 2022 344	June 30, 2022
			344

(Continued)

50

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

(ix) Other transactions

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

Other related parties: Foundation	For the Three Months Ended June 30 2023 2022 $ 4,225 25	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ 4,225	2023 4,225	2022
			25

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

Associates Joint ventures Other related parties	Other Expenses	Other Expenses	Other Expenses
	For the Three Months Ended June 30 2023 2022 $ 2 - - 9 115 - $ 117 9	For the Six Months Ended June 30
	2023 $ 2 - 115 $ 117	2023 2 - 115 117	2022
			1 190 -
			191

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

Joint ventures: The Splendor Hospitality Others	Interest Revenues	Interest Revenues	Interest Revenues
	For the Three Months Ended June 30 2023 2022 $ 3,535 3,489 42 23 $ 3,577 3,512	For the Six Months Ended June 30
	2023 $ 3,535 42 $ 3,577	2023 7,051 84 7,135	2022
			6,929 87
			7,016

• 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)	Other Receivables (including advance payments)	Other Receivables (including advance payments)
	June 30, 2023 $ 318 23 154 1 $ 496	December 31, 2022 1,767 23 1,335 1,763 4,888	June 30, 2022
			9,570 49 168 19
			9,806

(Continued)

51

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

5) Other payables and advance receipts from related parties

Joint ventures Other related parties Key management	Other Payables (including advance receipts)	Other Payables (including advance receipts)	Other Payables (including advance receipts)
	June 30, 2023 $ - 175 - $ 175	December 31, 2022 554 192 3 749	June 30, 2022
			5 175 98
			278

(d) Key management transactions

The compensation of key management is as follows:

Short-term employee benefits Post-employment benefits	For the Three Months Ended June 30 2023 2022 $ 32,453 27,886 544 2,618 $ 32,997 30,504	For the Six Months Ended June 30	For the Six Months Ended June 30
	2023 $ 32,453 544 $ 32,997	2023 72,265 1,050 73,315	2022
			72,677 3,046
			75,723

(8) Pledged assets

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

Pledged Assets	Object	June 30, 2023 $ 1,424,715 276,201 591,555 5,312,490 10,249,079 7,820 22,458 866,061 $ 18,750,379	December 31, 2022 1,424,715 289,120 592,397 7,863,722 8,309,120 7,820 8,001 1,125,004 19,619,899	June 30, 2022
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			1,424,715 293,450 596,238 7,508,356 6,656,860 7,820 32,986 959,327
				17,479,752

(Continued)

52

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

(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, 2023 $ -	December 31, 2022 286	June 30, 2022
			955

• (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, 2023 $ 15,094,797 $ 9,749,950	December 31, 2022 15,572,738 8,730,814	June 30, 2022
			15,533,270
			9,960,293

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

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

Total contract price Total amounts received under contracts (recognized under current contract liabilities)	June 30, 2023 $ 15,906,663 $ 5,892,113	December 31, 2022 17,267,153 4,825,091	June 30, 2022
			17,360,543
			4,162,703

• (iv) The Group’s purchase contracts of building capacity is as follows:

Total contract price Total amounts paid under contracts (recognized under prepayments)	June 30, 2023 $ 168,748 $ 84,374	December 31, 2022 168,748 84,374	June 30, 2022
			168,748
			84,374

(Continued)

53

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

• (v) The Group’s security deposits paid to landlords for joint construction projects is as follows:

June 30, 2023 December 31, 2022 Security deposits of joint construction projects (recognized under other current and non-current financial assets) $ 361,590 306,707 The Group’s security deposits for renting real estates is as follows: June 30, 2023 December 31, 2022 Security deposits (recognized under other current and non-current financial assets) $ 101,540 101,650	June 30, 2022
	307,747
	June 30, 2022
	99,282

• (vi) The Group’s security deposits for renting real estates is as follows:

• (vii) 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, 2023 $ 82,080 $ 64,570	December 31, 2022 839,376 226,765	June 30, 2022
			445,406
			427,896

• (viii) 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, 2023 and 2022, 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 $101,460 thousand and $97,092 thousand, as of June 30, 2023 and 2022, respectively.

• (ix) 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 revenue for the fiscal year or each accounting period.

(Continued)

54

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

• (b) Contingencies

• (i) Please refer to Note 7 for the Group’s guarantees and endorsements for related parties’ loans as of June 30, 2023 and 2022.

• (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 The Company Sunflower Investment

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

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(q).

(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. On September 7, 2022, the Supreme Court remanded the original decision, which is in trial in the Taiwan High Court.

(Continued)

55

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

(c) Employee benefits, depreciation, and amortization are summarized as follows:

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
		2023		2022
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	166,527	185,128	351,655	172,227	148,763	320,990
Labor and health insurance	14,873	12,190	27,063	15,658	11,693	27,351
Pension	11,897	9,069	20,966	12,414	8,770	21,184
Others	18,976	8,882	27,858	13,728	17,661	31,389
Depreciation	187,966	76,474	264,440	182,317	79,781	262,098
Amortization	354	767	1,121	328	1,020	1,348
By function By item		For the Six Months Ended June 30
		2023		2022
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	331,926	360,707	692,633	352,903	323,320	676,223
Labor and health insurance	30,448	26,022	56,470	31,121	25,301	56,422
Pension	24,288	20,693	44,981	24,696	17,412	42,108
Others	35,183	25,287	60,470	29,773	28,797	58,570
Depreciation	371,520	156,210	527,730	362,737	155,505	518,242
Amortization	709	1,666	2,375	655	2,123	2,778

(13) Other disclosures:

• (a) Information on significant transactions:

The following is the information on significant transactions for the six months ended June 30, 2023, 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	UEA	Accounts receivable due from related parties	Yes	31,140	31,140	-	4.00%	2	-	Operation requirements	-		-	3,733,643	4,978,190
0	The Company	Taichung CMP Hospitality	Accounts receivable due from related parties	Yes	1,260,000	1,260,000	-	2.50%	2	-	Operation requirements	-		-	3,733,643	4,978,190
1	Tianjin CMT	Suzhou CMB	Accounts receivable due from related parties	Yes	111,250	107,000	107,000	0.75%	2	-	Operation requirements	-		-	322,508	430,011
1	Tianjin CMT	CMH	Accounts receivable due from related parties	Yes	311,500	299,600	299,600	0.75%	2	-	Operation requirements	-		-	322,508	430,011

(Continued)

56

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

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
2	Suzhou CMS	CMH	Accounts receivable due from related parties	Yes	934,500	684,800	684,800	0.75%	2	-	Operation requirements	-		-	1,329,073	1,772,097
3	CMW (Tianjin)	CMH	Accounts receivable due from related parties	Yes	216,000	214,000	214,000	0.75%	2	-	Operation requirements	-		-	1,627,227	2,169,636
4	CMAI	Pilot	Accounts receivable due from related parties	Yes	39,975	34,254	34,254	3.05%	2	-	Operation requirements	-	Land, buildings and improvement	70,658	51,435	68,581
5	CMW (C.I.)	CMI	Accounts receivable due from related parties	Yes	445,000	428,000	-	-	2	-	Operation requirements	-		-	1,637,383	2,183,177

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.

1. For the necessity of short-term financing.

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

3. 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)

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	Sunflower Investment	1	4,978,190	160,000	160,000	82,000	-	% 1.29	6,222,738	Y	N	N
0	The Company	The Hotel National	1	4,978,190	50,000	50,000	-	-	% 0.40	6,222,738	Y	N	N
0	The Company	Shangrila Tourism	1	4,978,190	1,226,500	674,500	372,000	-	% 5.42	6,222,738	Y	N	N
0	The Company	The Splendor Hospitality	2	4,978,190	2,050,000	1,900,000	1,450,000	-	% 15.27	6,222,738	N	N	N
0	The Company	CMAAN Health	2	4,978,190	22,500	22,500	11,326	-	% 0.18	6,222,738	N	N	N
1	CMI	UEA	3	3,746,837	864,940	665,054	665,054	-	% 7.10	4,683,547	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%.

(Continued)

57

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

(iii) Securities held as of June 30, 2023 (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	99,955	% 3.12	99,955
The Company	GUANGYUAN Investment Co., Ltd.	-	Non-current financial assets at FVOCI	3,750,000	31,134	% 3.91	31,134
The Company	DEVELOPMENT Venture Capital Co., Ltd.	The Company is the legal person	Non-current financial assets at FVOCI	3,600,000	15,062	% 4.00	15,062
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	653,530	-	% 19.80	-
Sunflower Investment	il. COM, INC.	-	Non-current financial assets at FVOCI	100,000	-	% 0.52	-
Sunflower Investment	Asia World Engineering & Construction Co., Ltd.	-	Non-current financial assets at FVOCI	4,320,000	30,000	% 6.63	30,000
Sunflower Investment	Masada Technology Limited Co., Ltd.	-	Non-current financial assets at FVOCI	2,000,000	20,000	% 5.95	20,000
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:

(In Thousands of NTD)

Name of company	Category and name of security	Account name	Name of counter-party	Relationship with the company	Beginning Balance	Beginning Balance	Purchases	Purchases	Sales	Sales	Sales	Sales	Ending Balance	Ending Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
The Company	Shares	Investments accounted for using equity method	Taichung CMP Hospitality	Subsidiaries	33,880,000	338,800	20,000,000	200,000	-	-	-	-	53,880,000	538,800

• (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.

• (vii) Information regarding related-party transactions for purchases and sales exceeding NT$100 million or 20% of the share capital:

(In Thousands of NTD)

Name of Company	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	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)
uzhou CMS	CMI	Subsidiaries	Sale	452,060	% 39.46	180 days	-	-	1,814,383	81.65%
uzhou CMB	CMI	Subsidiaries	Sale	126,718	% 15.83	180 days	-	-	301,409	35.93%
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Sale	447,885	% 24.34	180 days	-	-	1,556,946	55.40%

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

(Continued)

58

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to 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
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Accounts receivable due from related parties 1,556,946	0.55	-	-	CNY 34,276,005	-
CMW(Tianjin)	CMH	Affiliates	Accounts receivable due from related parties, other 214,000	-	-	-	-	-
Tianjin CMT	CMI	Subsidiaries	Accounts receivable due from related parties 290,652	-	-	-	-	-
Tianjin CMT	CMH	Affiliates	Accounts receivable due from related parties, other 299,600	-	-	-	-	-
Tianjin CMT	Suzhou CMB	Affiliates	Accounts receivable due from related parties, other 107,000	-	-	-	-	-
Suzhou CMB	CMI	Subsidiaries	Accounts receivable due from related parties 301,409	0.83	-	-	CNY 12,036,246	-
Suzhou CMS	CMI	Subsidiaries	Accounts receivable due from related parties 1,814,383	0.49	-	-	CNY 13,068,000	-
Suzhou CMS	CMH	Affiliates	Accounts receivable due from related parties, other 684,800	-	-	-	-	-

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	CMJ	1	Operating revenue	24,323	90 days	0.32%
0	China Metal Products	Atrans Precision	1	Operating revenue	16,953	60~90 days	0.23%
1	CMW (Tianjin)	CMW (C.I.)	2	Operating revenue	447,885	180 days	5.95%
3	Suzhou CMS	CMI	2	Operating revenue	452,060	180 days	6.00%
3	Suzhou CMS	Suzhou CMB	3	Operating revenue	21,020	90 days	0.28%
3	Suzhou CMS	CMP (H.K)	2	Operating revenue	23,611	180 days	0.31%
4	Suzhou CMB	Suzhou CMS	3	Operating revenue	30,128	90 days	0.40%
4	Suzhou CMB	CMI	2	Operating revenue	126,718	180 days	1.68%
4	Suzhou CMB	CMB(H.K.)	2	Operating revenue	42,530	180 days	0.56%
5	National Management	China Metal Products	2	Operating revenue	40,928	OA25 days	0.54%
9	CMH	CMW (Tianjin)	3	Operating revenue	46,420	90 days	0.62%
9	CMH	Suzhou CMB	3	Operating revenue	11,780	90 days	0.16%
9	CMH	Suzhou CMS	3	Operating revenue	22,043	90 days	0.29%
10	CMAI(N.A.)	CMAI	2	Operating revenue	35,439	90~120 days	0.47%
10	CMAI(N.A.)	CMW (C.I.)	3	Operating revenue	10,591	90~120 days	0.14%
0	China Metal Products	Atrans Precision	1	Accounts receivable due from related parties	10,609	60~90 days	0.02%
0	China Metal Products	CMJ	1	Accounts receivable due from related parties	10,841	90 days	0.02%
1	CMW (Tianjin)	CMW(C.I.)	2	Accounts receivable due from related parties	1,556,946	180 days	2.96%
2	Tianjin CMT	CMI	2	Accounts receivable due from related parties	290,652	180 days	0.55%
2	Tianjin CMT	CMW (Tianjin)	3	Accounts receivable due from related parties	42,566	90 days	0.08%
9	CMH	Suzhou CMS	3	Accounts receivable due from related parties	22,809	90 days	0.04%
9	CMH	CMW (Tianjin)	3	Accounts receivable due from related parties	15,678	90 days	0.03%
9	CMH	Suzhou CMB	3	Accounts receivable due from related parties	11,657	90 days	0.02%
3	Suzhou CMS	CMI	2	Accounts receivable due from related parties	1,814,383	180 days	3.44%

(Continued)

59

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)
3	Suzhou CMS	CMP (H.K.)	2	Accounts receivable due from related parties	11,198	180 days	0.02%
4	Suzhou CMB	CMB (H.K.)	2	Accounts receivable due from related parties	75,995	180 days	0.14%
4	Suzhou CMB	CMI	2	Accounts receivable due from related parties	301,409	180 days	0.57%
4	Suzhou CMB	Suzhou CMS	3	Accounts receivable due from related parties	22,009	90 days	0.04%
10	CMAI(N.A.)	CMAI	2	Accounts receivable due from related parties	52,018	90~120 days	0.10%
0	China Metal Products	CMB (H.K.)	1	Other receivables due from related parties	10,504	-	0.02%
0	China Metal Products	PUJEN Land Development	1	Other receivables due from related parties	95,327	-	0.18%
0	China Metal Products	Sunflower Investment	1	Other receivables due from related parties	33,507	-	0.06%
2	Tianjin CMT	Suzhou CMS	3	Other receivables due from related parties	11,151	-	0.02%
2	Tianjin CMT	Suzhou CMB	3	Other receivables due from related parties	107,000	-	0.20%
2	Tianjin CMT	CMH	3	Other receivables due from related parties	299,600	-	0.57%
3	Suzhou CMS	CMH	3	Other receivables due from related parties	684,800	-	1.30%
1	CMW (Tianjin)	CMH	3	Other receivables due from related parties	214,000	-	0.41%
6	CMI	CMH	1	Other receivables due from related parties	24,881	-	0.05%
7	CMW(C.I.)	CMW (Tianjin)	1	Other receivables due from related parties	45,511	-	0.09%
10	CMAI (N.A)	CMAI	2	Other receivables due from related parties	16,127	-	0.03%
11	CMAI	Pilot	1	Other receivables due from related parties	35,172	-	0.07%
11	CMAI	CMAI(N.A.)	1	Other receivables due from related parties	52,284	-	0.10%
12	Sunflower Investment	PUJEN Land Development	3	Other receivables due from related parties	25,545	-	0.05%
8	CMB(H.K.)	Suzhou CMB	1	Other long-term receivables due from related parties	26,906	-	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.

2. Subsidiaries – In sequence from 1.

Note 2: Relationship is classified into three types:

1. Parent company to subsidiary.

2. Subsidiary to parent company.

3. 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)

60

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, 2023 (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, 2023	Balance as of June 30, 2023	Balance as of June 30, 2023	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				June 30, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
The Company	UEA	British Virgin Islands	Investing in CMI	865,286	865,286	667,820	% 100.00	7,332,705	79,731	79,731	Subsidiaries
The Company	Sunflower Investment	Taiwan	Investing	99,096	99,096	67,013,057	% 99.01	904,752	60,616	60,016	Subsidiaries
The Company	Atrans Precision	Taiwan	Vehicle parts processing	247,218	247,218	25,782,134	% 72.24	430,441	45,625	33,903	Subsidiaries
The Company	CMJ	Japan	Cast iron product retailing	4,887	4,887	500	% 83.33	114,060	21,749	18,124	Subsidiaries
The Company	CMAI	Hong Kong	Vehicle parts retailing	24,036	24,036	1,000,000	% 100.00	190,879	19,058	19,058	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	4,258,296	376,858	211,614	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)	(422)	-	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	1,289,293	2,706	1,728	Subsidiaries
The Company	National Management	Taiwan	Management and consulting services	10,000	10,000	1,000,000	% 100.00	19,158	3,421	3,421	Subsidiaries
The Company	The Splendor Hospitality	Taiwan	International tourist hotel services	1,125,000	1,125,000	32,500,000	% 50.00	256,367	(13,361)	(13,732)	Joint ventures accounted for using equity method
The Company	Shangrila Tourism	Taiwan	Amusement park and hotel services	564,303	564,303	22,664,800	% 100.00	386,274	(36,234)	(35,491)	Subsidiaries
The Company	CMAAN Health	Taiwan	Management and consulting services	50,000	50,000	5,000,000	% 50.00	45,089	4,112	1,972	Joint ventures accounted for using equity method
The Company	Taichung CMP Hospitality	Taiwan	International tourist hotel services	538,800	338,800	53,880,000	% 100.00	533,393	(5,304)	(5,304)	Subsidiaries
The Company	Calligraphy Greenway Plaza Co., Ltd	Taiwan	Management and consulting services	59,000	59,000	5,900,000	% 100.00	63,990	4,272	4,272	Subsidiaries
The Company	Great Naturalistic Block	Taiwan	Management and consulting services	20,000	-	2,000,000	% 100.00	19,895	(105)	(105)	Subsidiaries
Sunflower Investment	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	288,437	288,437	42,568,300	% 15.18	1,106,088	376,858	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Astrans Precision	Taiwan	Vehicle parts processing	77,836	77,836	4,737,380	% 13.27	78,513	45,625	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)	(422)	Exempt from disclosure	Investee 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	11,687	(1,996)	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 254,874,098	USD 3,775,550	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 1,285,460,709	CNY 23,668,394	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 1,328,470,304	CNY 6,748,000	Exempt from disclosure	Subsidiaries of CMI
CMI	CMB (H.K.)	Hong Kong	Investing in Suzhou CMB	USD 92,970,000	USD 85,820,000	151,120,350	% 100.00	CNY 591,019,764	CNY (6,285,958)	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 1,287,924,282	CNY 23,668,394	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 2,956,841	USD 378,089	Exempt from disclosure	Subsidiaries of CMAI
CMAI Holding	Pilot	USA	Assets leasing	USD 8,328,644	USD 8,328,644	-	% 100.00	USD 2,956,841	USD 378,089	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 1,849,764	USD 347,915	Exempt from disclosure	Subsidiaries of Pilot
Atrans Precision	FAR HSING (SAMOA)	SAMOA	Investing	USD 2,422,055	USD 2,422,055	2,422,055	% 100.00	70,809	(12)	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 1,120,113	USD (65,348)	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	234,496	31,220,979	% 30.00	329,709	(41,735)	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equity method

(Continued)

61

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, 2023	Balance as of June 30, 2023	Balance as of June 30, 2023	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				June 30, 2023	December 31, 2022	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	5,390	(39)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUJEN CHENGMEI Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	129,500	129,500	12,950,000	% 70.00	103,826	(34)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUCHIA Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	-	50	-	% -	-	-	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUZHI Construction	Taiwan	Residents, commercial buildings and factories leasing and developing	34,800	34,800	22,500	% 100.00	32,680	(1,709)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	Hua-Pu Development	Taiwan	Residents, commercial buildings and factories leasing and developing	5,000	5,000	500,000	% 50.00	5,460	790	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	2,738	1,121	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, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of June 30, 2023	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	934,200 (USD30,000)	2	388,238	-	-	388,238	11,007 (CNY2,496)	83.27%	9,165 (CNY2,078)	1,075,029 (CNY251,175)	82,542
Suzhou CMS	Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	747,360 (USD24,000)	2	423,406	-	-	423,406	89,847 (CNY20,373)	83.27%	74,760 (CNY16,952)	4,430,774 (CNY1,035,228)	14,601
Suzhou CMB	Cast iron product designing, manufacturingand retailing	2,553,480 (USD82,000)	2	-	-	-	-	(22,675) (CNY(5,142))	83.27%	(18,881) (CNY(4,281))	2,529,524 (CNY591,010)	-
CMW (Tianjin)	Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling	996,480 (USD32,000)	2	-	-	-	-	90,768 (CNY20,582)	83.27%	80,572 (CNY18,270)	5,399,825 (CNY1,261,641)	-
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	996,480 (USD32,000)	2	-	-	-	-	(79,480) (CNY(18,023))	83.27%	(66,183) (CNY(15,007))	725,092 (CNY169,414)	-
Qingdao Sourcing Specialists	Cast iron product retailing	3,114 (USD100)	2	-	-	-	-	2,557 (JPY11,271)	83.33%	2,131 (JPY9,392)	49,882 (JPY232,009)	-

(Continued)

62

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

• (ii) Limitation on investment in Mainland China:

Limitation on investment in Mainland China:	Limitation on investment in Mainland China:	Limitation on investment in Mainland China:
(In Thousands of NTD and USD) Accumulated Investment in Mainland China as of June 30, 2023 Investment Amount Authorized by the Investment Commission, MOEA (Note 6) Upper Limit on Investment (Note 4) 811,644 6,496,458 (USD 208,621 ) -
Accumulated Investment in Mainland China as of June 30, 2023	Investment Amount Authorized by the Investment Commission, MOEA (Note 6)	Upper Limit on Investment (Note 4)
811,644	6,496,458 (USD 208,621 )	-

Note 1: Method of investment is classified into three types:

1. Directly invested in Mainland China.

2. Indirectly invested in Mainland China through the third region.

3. 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, 2023 to March 1, 2026. The restriction on the cumulative investment amount or proportion in China is not applicable.

Note 5: As of June 30, 2023, the company had obtained a surplus of $3,221,038 thousand (USD106,993 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 amount in the table is translated by the spot rate on the financial reporting date.

Note 7: The aforementioned investments have been eliminated in the consolidated financial statements.

• (iii) Significant transactions: None.

• (d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Chain-Yuan Investment Co., Ltd.	55,712,965	% 14.81
Fubon Life Insurance Co., Ltd.	27,437,000	% 7.29
Mr. Ming Shiann, Ho	26,312,540	% 6.99

(Continued)

63

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, 2023 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Three 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, 2023 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 $	Metal Manufacturing Segment	Real Estate Development Segment 1,878,797 850 1,879,647 566,650 162,453 849 163,302 (36,475) 1,882,537 1,700 1,884,237 478,736 1,566,625 1,698 1,568,323 372,221	Lifestyle Hospitality Segment 149,627 23,488 173,115 5,527 127,367 16,325 143,692 (11,092) 313,083 46,429 359,512 10,069 291,115 37,945 329,060 6,519	Reconciliation and Elimination - (739,352) (739,352) (175,161) - (998,336) (998,336) (161,532) - (1,397,612) (1,397,612) (246,688) - (1,864,089) (1,864,089) (284,266)	Total
	$ 2,633,116 715,014 $ 3,348,130 $ 147,090 $ 2,750,573 981,162 $ 3,731,735 $ 224,225 $ 5,337,092 1,349,483 $ 6,686,575 $ 268,131 5,778,185 1,824,446 7,602,631 454,073				4,661,540 -
					4,661,540
					544,106
					3,040,393 -
					3,040,393
					15,126
					7,532,712 -
					7,532,712
					510,248
					7,635,925 -
					7,635,925
					548,547

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.