CMP - Interim / Quarterly Report 2023

Stock Code:1532

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

with Independent Auditors’ Review Report For the Nine Months Ended September 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.

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

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Information on major shareholders (14) Segment information	Page
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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 September 30, 2023 and 2022, and the related consolidated statements of comprehensive income, for the three months and nine months ended September 30, 2023 and 2022, and the changes in equity and cash flows for the nine months ended September 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 $3,363,963 thousand and $3,176,660 thousand, constituting 6.36% and 6.38% of the consolidated total assets; and the total liabilities amounting to $1,617,361 thousand and $1,707,264 thousand, constituting 4.53% and 5.15% of the consolidated total liabilities as of September 30, 2023 and 2022, respectively, as well as the total comprehensive income (loss) amounting to $9,987 thousand, $71,126 thousand, $56,381 thousand and $166,434 thousand, constituting 1.18%, 29.71%, 5.82% and 17.74% of the consolidated total comprehensive income (loss) for the three months and nine months ended September 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 $644,116 thousand and $724,714 thousand as of September 30, 2023 and 2022, respectively, and its equity in net earnings on these investee companies of $(13,530) thousand, $(12,662) thousand, $(37,519) thousand and $(47,275) thousand for the three months and nine months ended September 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.

3-1

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2023 and 2022, and of its consolidated financial performance for the three months and nine months ended September 30, 2023 and 2022, and its consolidated cash flows for the nine months ended September 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) November 7, 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.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2023, December 31, 2022, and September 30, 2022

(Expressed in Thousands of New Taiwan Dollars)

December 31, 2022	December 31, 2022	September 30, 2022
Amount	%	Amount % 11,350,463 23 4,567,406 10 3,014,042 6 33,548 - 1,480,035 3 3,113 - 45,690 - 187,024 - 417,911 1 195,826 - 21,295,058 43 8,583 - 1,568,383 3 7,801,161 16 479,476 1 1,525,685 3 22,112 - 474,329 1 11,879,729 24 33,174,787 67 3,761,221 8 1,542,166 3 7,309,019 14 160,403 - 12,772,809 25 3,868,271 8 16,641,080 33 49,815,867 100
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.

(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 Nine Months Ended September 30, 2023 and 2022

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

For the Three Months Ended September 30 2023 2022 Amount % Amount % 4000 Operating revenues (Notes 6(w) and 7) $ 5,449,147 100 3,482,906 100 5000 Operating costs (Notes 6(d) and 7) (4,153,925) (76) (2,718,312) (78) Gross profit from operations 1,295,222 24 764,594 22 Operating expenses(Note 7): 6100 Selling expenses (165,234) (3) (137,579) (4) 6200 Administrative expenses(Note 6(x)) (468,448) (9) (435,874) (13) 6300 Research and development expenses (3,454) - (4,837) - 6450 Expected credit losses(Note 6(c)) (1,527) - (2,914) - Total operating expenses (638,663) (12) (581,204) (17) Net operating income 656,559 12 183,390 5 Non-operating income and expenses: 7100 Interest income(Notes 6(y) and 7) 13,465 - 8,313 - 7010 Other income(Notes 6(y) and 7) 27,585 1 28,299 1 7020 Other gains and losses(Notes (o) and (y)) 18,858 - 82,702 2 7050 Finance costs(Notes 6(y) and 7) (96,433) (2) (68,530) (2) 7060 Share of loss of associates and joint ventures accounted for using equity method, net(Note 6(e)) (13,530) - (12,662) - Total non-operating income and expenses (50,055) (1) 38,122 1 Profit from continuing operations before tax 606,504 11 221,512 6 7950 Less: Tax (expense) income(Note 6(t)) (64,371) (1) (415) - 8200 Net profit 542,133 10 221,097 6 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)) - - (5,244) - 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 - - (5,244) - 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign financial statements(Note 6(u)) 302,180 6 23,524 1 8399 Less:Income tax related to components of other comprehensive income that will be reclassified to profit or loss - - - - Total items that may be reclassified subsequently to profit or loss 302,180 6 23,524 1 8300 Other comprehensive income (after tax) 302,180 6 18,280 1 8500 Comprehensive income $ 844,313 16 239,377 7 Net profit, attributable to: 8610 Owners of parent $ 382,149 7 195,205 5 8620 Non-controlling interests 159,984 3 25,892 1 $ 542,133 10 221,097 6 Comprehensive income attributable to: 8710 Owners of parent $ 631,463 12 200,506 6 8720 Non-controlling interests 212,850 4 38,871 1 $ 844,313 16 239,377 7 Earnings per share (expressed in dollars)(Note 6(v)) 9750 Basic earnings per share $ 1.02 0.52 9850 Diluted earnings per share $ 0.89 0.45	For the Nine Months Ended September 30 2023 2022 Amount % Amount % 12,981,859 100 11,118,831 100 (10,042,024) (77) (8,698,591) (78) 2,939,835 23 2,420,240 22 (410,811) (3) (425,930) (4) (1,294,459) (10) (1,215,252) (11) (10,214) - (16,431) - (2,682) - (4,286) - (1,718,166) (13) (1,661,899) (15) 1,221,669 10 758,341 7 53,720 - 24,272 - 138,163 1 91,389 1 44,030 - 125,648 1 (303,311) (2) (182,316) (2) (37,519) - (47,275) - (104,917) (1) 11,718 - 1,116,752 9 770,059 7 (140,987) (1) 13,006 - 975,765 8 783,065 7 (3,212) - (23,009) - - - - - (3,212) - (23,009) - (4,063) - 178,161 1 - - - - (4,063) - 178,161 1 (7,275) - 155,152 1 968,490 8 938,217 8 680,301 6 633,918 6 295,464 2 149,147 1 975,765 8 783,065 7 671,142 6 741,709 6 297,348 2 196,508 2 968,490 8 938,217 8 1.81 1.69 1.54 1.46
	2023 Amount % 12,981,859 100 (10,042,024) (77) 2,939,835 23 (410,811) (3) (1,294,459) (10) (10,214) - (2,682) - (1,718,166) (13) 1,221,669 10 53,720 - 138,163 1 44,030 - (303,311) (2) (37,519) - (104,917) (1) 1,116,752 9 (140,987) (1) 975,765 8 (3,212) - - - (3,212) - (4,063) - - - (4,063) - (7,275) - 968,490 8 680,301 6 295,464 2 975,765 8 671,142 6 297,348 2 968,490 8 1.81 1.54

For the Three Months Ended
September 30
2023
2022
Amount
%
Amount
%
4000
Operating revenues (Notes 6(w) and 7)
$ 5,449,147
100
3,482,906
100
5000
Operating costs (Notes 6(d) and 7)
(4,153,925)
(76)
(2,718,312)
(78)
Gross profit from operations
1,295,222
24
764,594
22
Operating expenses(Note 7):
6100
Selling expenses
(165,234)
(3)
(137,579)
(4)
6200
Administrative expenses(Note 6(x))
(468,448)
(9)
(435,874)
(13)
6300
Research and development expenses
(3,454)
-
(4,837)
-
6450
Expected credit losses(Note 6(c))
(1,527)
-
(2,914)
-
Total operating expenses
(638,663)
(12)
(581,204)
(17)
Net operating income
656,559
12
183,390
5
Non-operating income and expenses:
7100
Interest income(Notes 6(y) and 7)
13,465
-
8,313
-
7010
Other income(Notes 6(y) and 7)
27,585
1
28,299
1
7020
Other gains and losses(Notes (o) and (y))
18,858
-
82,702
2
7050
Finance costs(Notes 6(y) and 7)
(96,433)
(2)
(68,530)
(2)
7060
Share of loss of associates and joint ventures accounted
for using equity method, net(Note 6(e))
(13,530)
-
(12,662)
-
Total non-operating income and expenses
(50,055)
(1)
38,122
1
Profit from continuing operations before tax
606,504
11
221,512
6
7950
Less: Tax (expense) income(Note 6(t))
(64,371)
(1)
(415)
-
8200
Net profit
542,133
10
221,097
6
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))
-
-
(5,244)
-
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
-
-
(5,244)
-
8360
Items that may be reclassified subsequently to profit or
loss:
8361
Exchange differences on translation of foreign financial
statements(Note 6(u))
302,180
6
23,524
1
8399
Less:Income tax related to components of other
comprehensive income that will be reclassified to
profit or loss
-
-
-
-
Total items that may be reclassified subsequently
to profit or loss
302,180
6
23,524
1
8300
Other comprehensive income (after tax)
302,180
6
18,280
1
8500
Comprehensive income
$
844,313
16
239,377
7
Net profit, attributable to:
8610
Owners of parent
$ 382,149
7
195,205
5
8620
Non-controlling interests
159,984
3
25,892
1
$
542,133
10
221,097
6
Comprehensive income attributable to:
8710
Owners of parent
$ 631,463
12
200,506
6
8720
Non-controlling interests
212,850
4
38,871
1
$
844,313
16
239,377
7
Earnings per share (expressed in dollars)(Note 6(v))
9750
Basic earnings per share
$
1.02
0.52
9850
Diluted earnings per share
$
0.89
0.45

For the Nine Months Ended
September 30
2023
2022
Amount
%
Amount
%
12,981,859
100
11,118,831
100
(10,042,024)
(77)
(8,698,591)
(78)
2,939,835
23
2,420,240
22
(410,811)
(3)
(425,930)
(4)
(1,294,459)
(10)
(1,215,252)
(11)
(10,214)
-
(16,431)
-
(2,682)
-
(4,286)
-
(1,718,166)
(13)
(1,661,899)
(15)
1,221,669
10
758,341
7
53,720
-
24,272
-
138,163
1
91,389
1
44,030
-
125,648
1
(303,311)
(2)
(182,316)
(2)
(37,519)
-
(47,275)
-
(104,917)
(1)
11,718
-
1,116,752
9
770,059
7
(140,987)
(1)
13,006
-
975,765
8
783,065
7
(3,212)
-
(23,009)
-
-
-
-
-
(3,212)
-
(23,009)
-
(4,063)
-
178,161
1
-
-
-
-
(4,063)
-
178,161
1
(7,275)
-
155,152
1
968,490
8
938,217
8
680,301
6
633,918
6
295,464
2
149,147
1
975,765
8
783,065
7
671,142
6
741,709
6
297,348
2
196,508
2
968,490
8
938,217
8
1.81
1.69
1.54
1.46

2023
Amount
%
12,981,859
100
(10,042,024)
(77)
2,939,835
23
(410,811)
(3)
(1,294,459)
(10)
(10,214)
-
(2,682)
-
(1,718,166)
(13)
1,221,669
10
53,720
-
138,163
1
44,030
-
(303,311)
(2)
(37,519)
-
(104,917)
(1)
1,116,752
9
(140,987)
(1)
975,765
8
(3,212)
-
-
-
(3,212)
-
(4,063)
-
-
-
(4,063)
-
(7,275)
-
968,490
8
680,301
6
295,464
2
975,765
8
671,142
6
297,348
2
968,490
8
1.81
1.54

See accompanying notes to consolidated financial statements.

(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 Nine Months Ended September 30, 2023 and 2022 (Expressed in Thousands of New Taiwan Dollars)

		Equity Attributable to Owners of	Equity Attributable to Owners of	Equity Attributable to Owners of	Equity Attributable to Owners of	Parent	Parent	Parent			Non- Controlling Interests	Total Equity
Share Capital	Capital Surplus	Retained Earnings				Other Equity			Total Equity Attributable to Owners of Parent
						Exchange Differences on Translation of Foreign Financial Statements	Unrealized Gains (Losses) from Financial Assets Measured at Fair Value Through Other Comprehensive Income
Ordinary Share		Legal Reserve		Special Reserve	Unappropriated Retained Earnings
$ 3,761,221 - - - - - - - - - - - $ 3,761,221 $ 3,761,221 - - - - - 14,257 - - - $ 3,775,478	1,488,270		1,844,008	49,081	5,579,250	(25,292) - 130,801 130,801 - - - - - - - - 105,509 10,196 - (5,947) (5,947) - - - - - - 4,249		78,077		12,774,615	3,973,038 149,147 47,361 196,508 - - - - - 13,398 (314,673) - 3,868,271 3,827,949 295,464 1,884 297,348 - - - 29,951 (127,113) - 4,028,135	16,747,653 783,065 155,152 938,217 - (793,618) 5,334 (3,793) 48,562 13,398 (314,673) - 16,641,080 16,684,890 975,765 (7,275) 968,490 - (451,347) 45,384 29,951 (127,113) 100 17,150,355
	- -		- -	- -	633,918 -					633,918 107,791
	-		-	-	633,918					741,709
	- - 5,334 - 48,562 - - -		120,840 - - - - - - -	- - - - - - - -
	1,542,166		1,964,848	49,081
	1,542,440		1,964,848	49,081
	- -		- -	- -
	-		-	-
	- - 31,127 - - -		81,335 - - - - -	- - - - - -
	1,573,567		2,046,183	49,081

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Nine Months Ended September 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 Acquisition of intangible assets Decrease in other financial assets Increase in other non-current assets Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term borrowings Decrease in short-term borrowings Decrease 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 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 Nine Months Ended September 30 2023 2022 $ 1,116,752 770,059 795,248 797,073 3,505 4,181 2,682 4,286 (8,253) 4,292 303,311 182,316 (53,720) (24,272) (15,689) (16,341) 37,519 47,275 3,826 5,701 542 9,208 (25) (23) 6,553 69,228 1,075,499 1,082,924 (35,837) 62,276 6,957 (13,228) (14,416) 58,022 (23,281) (1,215,160) 5,940 111,702 (139,522) (10,384) 4,716 354,631 10,466 (107,466) (184,977) (759,607) 222,601 (449,623) (15,279) (381,448) (15,285) 946,987 (13,477) 45,324 (161) (26,741) 178,399 134,499 (6,578) (625,108) 1,068,921 457,816 2,185,673 1,227,875 44,556 13,691 48,354 130,341 (415,033) (253,357) (125,348) (98,852) 1,738,202 1,019,698 (20,000) (30,000) - 37,190 - 8,000 - (150,015) - 16,432 (477,341) (616,127) 1,573 4,073 (1,907) (1,481) 416,842 538,955 (410,360) (763,142) (491,193) (956,115) 7,058,719 8,587,638 (5,809,161) (6,220,454) (15,791) (229,827) - 1,644,717 5,150,000 4,050,000 (6,995,048) (8,124,238) (141,046) (145,410) (22,733) 2,398 (451,347) (793,618) (127,113) (314,673) 29,950 14,904 (1,323,570) (1,528,563) 32 62,068 (76,529) (1,402,912) 6,068,902 5,039,645 $ 5,992,373 3,636,733
	2023 $ 1,116,752 795,248 3,505 2,682 (8,253) 303,311 (53,720) (15,689) 37,519 3,826 542 (25) 6,553 1,075,499 (35,837) 6,957 (14,416) (23,281) 5,940 (139,522) 4,716 10,466 (184,977) 222,601 (15,279) (15,285) (13,477) (161) 178,399 (6,578) 1,068,921 2,185,673 44,556 48,354 (415,033) (125,348) 1,738,202 (20,000) - - - - (477,341) 1,573 (1,907) 416,842 (410,360) (491,193) 7,058,719 (5,809,161) (15,791) - 5,150,000 (6,995,048) (141,046) (22,733) (451,347) (127,113) 29,950 (1,323,570) 32 (76,529) 6,068,902 $ 5,992,373

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
Acquisition of intangible assets
Decrease in other financial assets
Increase in other non-current assets
Net cash flows used in investing activities
Cash flows from financing activities:
Increase in short-term borrowings
Decrease in short-term borrowings
Decrease 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
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 Nine Months Ended September 30
2023
2022
$ 1,116,752
770,059
795,248
797,073
3,505
4,181
2,682
4,286
(8,253)
4,292
303,311
182,316
(53,720)
(24,272)
(15,689)
(16,341)
37,519
47,275
3,826
5,701
542
9,208
(25)
(23)
6,553
69,228
1,075,499
1,082,924
(35,837)
62,276
6,957
(13,228)
(14,416)
58,022
(23,281)
(1,215,160)
5,940
111,702
(139,522)
(10,384)
4,716
354,631
10,466
(107,466)
(184,977)
(759,607)
222,601
(449,623)
(15,279)
(381,448)
(15,285)
946,987
(13,477)
45,324
(161)
(26,741)
178,399
134,499
(6,578)
(625,108)
1,068,921
457,816
2,185,673
1,227,875
44,556
13,691
48,354
130,341
(415,033)
(253,357)
(125,348)
(98,852)
1,738,202
1,019,698
(20,000)
(30,000)
-
37,190
-
8,000
-
(150,015)
-
16,432
(477,341)
(616,127)
1,573
4,073
(1,907)
(1,481)
416,842
538,955
(410,360)
(763,142)
(491,193)
(956,115)
7,058,719
8,587,638
(5,809,161)
(6,220,454)
(15,791)
(229,827)
-
1,644,717
5,150,000
4,050,000
(6,995,048)
(8,124,238)
(141,046)
(145,410)
(22,733)
2,398
(451,347)
(793,618)
(127,113)
(314,673)
29,950
14,904
(1,323,570)
(1,528,563)
32
62,068
(76,529)
(1,402,912)
6,068,902
5,039,645
$
5,992,373
3,636,733

2023
$ 1,116,752
795,248
3,505
2,682
(8,253)
303,311
(53,720)
(15,689)
37,519
3,826
542
(25)
6,553
1,075,499
(35,837)
6,957
(14,416)
(23,281)
5,940
(139,522)
4,716
10,466
(184,977)
222,601
(15,279)
(15,285)
(13,477)
(161)
178,399
(6,578)
1,068,921
2,185,673
44,556
48,354
(415,033)
(125,348)
1,738,202
(20,000)
-
-
-
-
(477,341)
1,573
(1,907)
416,842
(410,360)
(491,193)
7,058,719
(5,809,161)
(15,791)
-
5,150,000
(6,995,048)
(141,046)
(22,733)
(451,347)
(127,113)
29,950
(1,323,570)
32
(76,529)
6,068,902
$
5,992,373

See accompanying notes to consolidated financial statements.

(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 Nine Months Ended September 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 November 7, 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”

The Group has initially adopted the new amendment, which do not have a significant impact on its consolidated financial statements, from May 23, 2023:

●Amendments to IAS 12 “International Tax Reform—Pillar Two Model Rules”
(b) The impact of IFRS endorsed by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2024, would not have a significant impact on its consolidated financial statements:

●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
●Amendments to IAS 1 “Non-current Liabilities with Covenants”
●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

(Continued)

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

(c) 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 IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information”
●Amendments to IAS21 “Lack of Exchangeability”

(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 September 30, 2023 December 31, 2022 September 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	Percentage Ownership September 30, 2023 December 31, 2022 September 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
				December 31, 2022
The Company The Company and Sunflower Investment The Company	United Elite Agents Limited (UEA) Atrans Precision Industries Co., Ltd. (Atrans Precision) Sunflower Investment Co., Ltd. (Sunflower Investment)	Investing Vehicle parts processing Investing	% 100.00 % 85.51 % 99.01	% 100.00 % 85.51 % 99.01

(Continued)

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

Investor	Name of Subsidiary	Principal Activity	Percentage Ownership September 30, 2023 December 31, 2022 September 30, 2022 Note % 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 % 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	Percentage Ownership September 30, 2023 December 31, 2022 September 30, 2022 Note % 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 % 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
				December 31, 2022
The Company The Company The Company The Company The Company and Sunflower Investment The Company and PUJEN Land Development The Company The Company The Company UEA CMI CMI CMI CMB (H.K.) CMI (BVI) CMP (H.K.) CMP (H.K.) CMW (C.I.)	The Hotel National Co., Ltd. (The Hotel National) 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) 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))	International tourist hotel services and other hotel business approved by the Ministry of Transportation and Communications Vehicle parts retailing Cast iron product retailing Management and consulting services Residents, commercial buildings and factories leasing and developing Amusement park and hotel services International tourist hotel services Management and consulting services Management and consulting services Investing and cast iron product retailing Investing Investing Investing Cast iron product designing, manufacturing and retailing Investing Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling	% 100.00 % 100.00 % 83.33 % 100.00 % 71.82 % 100.00 % 100.00 % 100.00 % 100.00 % 83.27 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 83.33 % 100.00 % 71.82 % 100.00 % 100.00 % 100.00 % - % 83.27 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00

(Continued)

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

			Percentage Ownership	Percentage Ownership	Percentage Ownership	Percentage Ownership	Percentage Ownership
			September		December 31,		September
Investor	Name of Subsidiary	Principal Activity	30, 2023		2022		30, 2022		Note
CMW (C.I.)	CMI (Wu Han) Precision Machinery	Vehicle parts, farm wagon	100.00	%	100.00	%	100.00	%	Notes 2
	Co., Ltd. (CMH)	parts, industrial wagon parts,
		household appliances parts
		and E&M as-casting and
		molds developing,
		manufacturing, selling and
		the after sales services
CMJ	Qingdao Sourcing Specialists Trading	Cast iron product retailing	100.00	%	100.00	%	100.00	%	Note 1
	Co., Ltd. (Qingdao Sourcing Specialists)
Atrans Precision FAR HSING (SAMOA) ENTERPRISE		Investing	100.00	%	100.00	%	100.00	%	Note 1
	CO., LTD. (FAR HSING (SAMOA))
PUJEN Land	CHINGENG Land Development Co.,	Residents, commercial	50.00	%	50.00	%	50.00	%	Note 1
Development	Ltd. (CHINGENG Land Development)	buildings and factories
		leasing and developing
PUJEN Land	PUJEN CHENGMEI Land Development	Residents, commercial	70.00	%	70.00	%	70.00	%	Note 1
Development	Co., Ltd. (PUJEN CHENGMEI Land	buildings and factories
	Development)	leasing and developing
PUJEN Land	PUCHIA Land Development Co., Ltd.	Residents, commercial	-	%	50.00	%	50.00	%	Note 1
Development	(PUCHIA Land Development)	buildings and factories							&Note 6
		leasing and developing
PUJEN Land	PUZHI Construction Co., Ltd.	Comprehensive construction	100.00	%	100.00	%	-	%	Note 1
Development	(PUZHI Construction)	Activities, residents,							&Note 3
		commercial buildings and
		factories leasing and
		developing
CMAI	CMAI Holding, Inc. (CMAI Holding)	Investing	100.00	%	100.00	%	100.00	%	Note 1
CMAI Holding	Pilot Drive LLC (Pilot)	Assets leasing	100.00	%	100.00	%	100.00	%	Note 1
Pilot	CMAI INDUSTRIES, INC.	Vehicle parts retailing	100.00	%	100.00	%	100.00	%	Note 1
	(CMAI N.A.)
Note 1: An non-significant subsidiary, its financial statements have					not been	reviewed.
Note 2: The financial statements have been reviewed.
Note 3: 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.

(Continued)

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

(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.

(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	September 30, 2023 $ 5,701 3,203,750 2,782,922 $ 5,992,373	December 31, 2022 6,561 4,008,099 2,054,242 6,068,902	September 30, 2022
			6,631 2,596,244 1,033,858
			3,636,733

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

(Continued)

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

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

Equity investments at fair value through other comprehensive income Stocks 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	September 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	September 30, 2022
			101,180 29,631 16,287 30,000 -
			177,098

(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 nine months ended September 30, 2023 and 2022, the Group received dividend income amounting to $1,162 thousand, $0 thousand, $15,689 thousand and $16,341 thousand, respectively, from the above investments measured at FVOCI.
(iii) In the third 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 September 30, 2023, December 31 and September 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	September 30, 2023 $ 565,370 3,293,417 3,858,787 7,570 $ 3,851,217	December 31, 2022 475,583 3,344,375 3,819,958 (5,348) 3,814,610	September 30, 2022 464,131 3,647,606 4,111,737 (8,201) 4,103,536

(Continued)

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

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:

September 30, 2023	September 30, 2023
Gross Carrying Amount Weighted Average Loss Rate $ 3,711,697 0% 61,356 0% 20,844 0% 26,189 0% 25,094 25.23%~49.96% 13,607 100% $ 3,858,787 December 31, 2022		Loss Allowance Provision
		- - - - 6,671 899
		7,570

Gross Carrying Amount Weighted Average Loss Rate $ 3,609,369 0% 108,785 0% 86,405 0% 5,456 0% 7,839 25.23%~49.96% 2,104 100% $ 3,819,958 September 30, 2022		Loss Allowance Provision
		- - - - 3,244 2,104
		5,348

Gross Carrying Amount $ 3,837,193 131,890 100,837 15,008 24,233 2,576 $ 4,111,737	Weighted Average Loss Rate 0% 0% 0% 0%~13.5% 20%~43.37% 100%	Loss Allowance Provision
		- - - 769 4,856 2,576
		8,201

(Continued)

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

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

Balance on January 1 Impairment losses recognized Amounts written off Foreign exchange losses Balance on September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2023 $ 5,348 2,682 (510) 50 $ 7,570	2022
		3,764 4,286 - 151
		8,201

The financial assets mentioned above were not pledged as collateral.

(d) Inventories

Raw materials Work in process Semi-finished goods Finished goods Merchandise Land held for development Properties and land held for sale Construction-in-progress Prepayments for land Other inventories	September 30, 2023 $ 195,213 213,897 115,386 1,125,465 140,536 6,056,992 165,386 14,021,518 60,070 67,742 $ 22,162,205	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	September 30, 2022
			259,223 285,495 135,832 1,562,493 112,616 8,546,058 309,865 9,889,688 64,570 217,625
			21,383,465

(i) For the three months and nine months ended September 30, 2023 and 2022, the cost of goods sold amounted to $4,153,925 thousand, $2,718,312 thousand, $10,042,024 thousand and $8,698,591 thousand, respectively. For the three months and nine months ended September 30, 2023 and 2022, the (loss for inventory obsolescence) reversal gain from the (decrease) increase in inventories' net realizable value amounted to $(7,343) thousand, $4,451 thousand, $(757) thousand and $(2,530) thousand, respectively.
(ii) For the information on inventories pledged as collateral, as of September 30, 2023, December 31 and September 30, 2022, please refer to Note 8.
(iii) For the nine months ended September 30, 2023 and 2022, the capitalized interest expense recognized in the inventory amounted to $92,148 thousand and $48,988 thousand, respectively. The interest rate of capitalization were 2.40%~2.59% and 1.68%~1.94%, respectively.

(Continued)

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

(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	September 30, 2023 $ 344,575 299,541 $ 644,116	December 31, 2022 391,050 316,929 707,979	September 30, 2022
			399,656 325,058
			724,714

(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 nine months ended September 30, 2023 and 2022, the unrealized investment losses amounted to $67 thousand, $69 thousand, $268 thousand and $213 thousand, respectively; the accumulated unrealized investment losses, as of September 30, 2023 and 2022, amounted to $58,395 thousand and $57,981 thousand, respectively.

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

September 30, 2023 December 31, 2022 September 30, 2022 Carrying amount of individually insignificant associates' equity $ 344,575 391,050 399,656 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 Attributable to the Group: Net loss $ (6,154) (10,297) (18,779) (6,628) Other comprehensive income - - - - Comprehensive income $ (6,154) (10,297) (18,779) (6,628)	September 30, 2022	September 30, 2022
	399,656
2023 (18,779) - (18,779)		2022
		(6,628) -
		(6,628)

(ii) Joint ventures

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

Carrying amount of individually insignificant joint ventures' equity	September 30, 2023 $ 299,541	December 31, 2022 316,929	September 30, 2022
			325,058

(Continued)

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

Attributable to the Group: Net loss Other comprehensive income Comprehensive income	For the Three Months Ended September 30 2023 2022 $ (7,376) (2,365) - - $ (7,376) (2,365)	For the Nine Months Ended September 30 2023 2022 (18,740) (40,647) - - (18,740) (40,647)
	2023 $ (7,376) - $ (7,376)	2023 (18,740) - (18,740)

(iii) Pledge to secure

As of September 30, 2023, December 31 and September 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 nine months ended September 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 Nine Months Ended September 30, 2022 Sunflower Investment $ 97 (96) $ 1	For the Nine Months Ended September 30, 2022 Sunflower Investment $ 97 (96) $ 1

(Continued)

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

(g) Property, plant and equipment

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

Buildings	Construction in Progress	Total 19,832,225 477,341 (109,552) 70,552 36,116
4,332,425 10,833 - 39,248 11,265 4,393,771 3,840,120 2,657 - 160,295 92,792 4,095,864 1,675,417 93,722 - - 3,513 1,772,652 1,539,755 89,914 - - 30,250 1,659,919 2,657,008 2,621,119 2,300,365 2,435,945	1,001,199 355,030 - (568,808) (1,709) 785,712 1,321,500 449,151 - (368,139) 34,699 1,437,211 - - - - - - - - - - - - 1,001,199 785,712 1,321,500 1,437,211
		20,306,682
		19,117,077 616,127 (200,128) 112,340 411,018
		20,056,434
		9,221,579 642,158 (104,153) 4,986 21,432
		9,786,002
		8,527,028 636,933 (190,354) 2,280 216,335
		9,192,222
		10,610,646
		10,520,680
		10,590,049
		10,864,212

As of September 30, 2023, December 31 and September 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.

(Continued)

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

(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 nine months ended September 30, 2023 and 2022 are as follows:

Cost: Balance on January 1, 2023 Additions Reduction for expiration Influence from exchange rates Balance on September 30, 2023 Balance on January 1, 2022 Additions Reduction for expiration Influence from exchange rates Balance on September 30, 2022 Accumulated depreciation: Balance on January 1, 2023 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on September 30, 2023 Balance on January 1, 2022 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on September 30, 2022 Carrying value: Balance on January 1, 2023 Balance on September 30, 2023 Balance on January 1, 2022 Balance on September 30, 2022	Land $ 1,010,225 - - 780 $ 1,011,005 $ 1,004,772 - - 10,128 $ 1,014,900 $ 202,927 17,668 - - 259 $ 220,854 $ 177,882 17,714 - - 2,755 $ 198,351 $ 807,298 $ 790,151 $ 826,890 $ 816,549	Buildings 2,401,476 1,142 (2,327) 19 2,400,310 2,393,697 10,695 (3,126) 76 2,401,342 1,478,153 122,465 324 (2,327) 20 1,598,635 1,317,008 122,357 631 (2,879) 17 1,437,134 923,323 801,675 1,076,689 964,208	Machinery 33,287 - (7,016) 53 26,324 47,835 17,588 (34,022) 1,020 32,421 20,424 3,787 - (7,016) 48 17,243 39,869 10,602 - (34,022) 791 17,240 12,863 9,081 7,966 15,181	Transportation Equipment 22,150 6,324 (6,574) 7 21,907 23,183 1,792 (3,120) 126 21,981 8,676 4,831 - (3,900) 2 9,609 7,254 4,490 - (3,120) 54 8,678 13,474 12,298 15,929 13,303	Office Equipment 1,762 433 (613) 23 1,605 2,046 - (344) 81 1,783 1,068 249 - (613) 6 710 966 309 - (344) 67 998 694 895 1,080 785	Other Equipment 120,670 119 (63) - 120,726 122,673 - - - 122,673 18,973 2,357 - (63) - 21,267 17,466 2,658 - - - 20,124 101,697 99,459 105,207 102,549	Total 3,589,570 8,018 (16,593) 882
							3,581,877
							3,594,206 30,075 (40,612) 11,431
							3,595,100
							1,730,221 151,357 324 (13,919) 335
							1,868,318
							1,560,445 158,130 631 (40,365) 3,684
							1,682,525
							1,859,349
							1,713,559
							2,033,761
							1,912,575

(Continued)

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

(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 September 30, 2023 Balance on January 1, 2022 Balance on September 30, 2022	Owned Property Land Buildings $ 596,723 66,663 $ 596,723 64,931 $ 609,567 97,107 $ 596,723 67,284	Total
	Land $ 596,723 $ 596,723 $ 609,567 $ 596,723
		663,386
		661,654
		706,674
		664,007

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.

Information on depreciation for the nine months ended September 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 September 30, 2023, December 31 and September 30, 2022, the details of investment properties pledged as collateral, please refer to Note 8.

(Continued)

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

(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 Acquisitions Disposal Reclassification Influence from exchange rates Balance on September 30, 2023 Balance on January 1, 2022 Acquisitions Reclassification Influence from exchange rates Balance on September 30, 2022 Accumulated amortization: Balance on January 1, 2023 Amortization Disposal Influence from exchange rates Balance on September 30, 2023 Balance on January 1, 2022 Amortization Influence from exchange rates Balance on September 30, 2022 Carrying value: Balance on January 1, 2023 Balance on September 30, 2023 Balance on January 1, 2022 Balance on September 30, 2022	Goodwill $ 414,417 - - - 7,287 $ 421,704 $ 385,268 - - 24,547 $ 409,815 $ - - - - $ - $ - - - $ - $ 414,417 $ 421,704 $ 385,268 $ 409,815	Patent 64,105 - - - 146 64,251 63,088 - - 1,890 64,978 64,105 - - 146 64,251 63,088 - 1,890 64,978 - - - -	Client Relationship 231,424 - - - 525 231,949 227,751 - - 6,822 234,573 231,424 - - 525 231,949 227,751 - 6,822 234,573 - - - -	Computer Software 46,300 1,907 (1,927) 254 168 46,702 43,337 1,481 461 439 45,718 33,971 3,505 (1,927) 168 35,717 28,061 4,181 439 32,681 12,329 10,985 15,276 13,037	Total 756,246 1,907 (1,927) 254 8,126 764,606 719,444 1,481 461 33,698 755,084 329,500 3,505 (1,927) 839 331,917 318,900 4,181 9,151 332,232 426,746 432,689 400,544 422,852

(Continued)

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	September 30, 2023 $ 575,000 23,250 (23,250) 119,696 $ 694,696	December 31, 2022 575,000 23,250 (23,250) 111,862 686,862	September 30, 2022 575,000 23,250 (23,250) 111,716 686,716

(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:

Underlying				September 30, 2023 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)
	Obligation Cost		Obligation Principal
The Splendor Hospitality International	$ 575,000		796,845

(Continued)

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

Underlying
	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 September 30, 2023, December 31 and September 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	September 30, 2023 $ 3,010,870 44,299 100,979 $ 3,156,148	December 31, 2022 2,681,197 44,299 86,067 2,811,563	September 30, 2022
			2,575,338 44,299 134,800
			2,754,437

(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)

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

(iii) For the nine months ended September 30, 2023 and 2022, the capitalized interest expense recognized in other non-current assets amounted to $23,609 thousand and $12,841 thousand, respectively. The interest rate of capitalization were 2.38%~2.50% and 1.9%~2.13%, respectively.

(m) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Notes and bills payable Total Unused credit limit Range of interest rates	September 30, 2023 $ 4,502,783 7,832,026 499,029 $ 12,833,838 $ 7,600,666 1.75%~6.95%	December 31, 2022 5,265,681 5,802,116 514,820 11,582,617 7,500,727 1.64%~6.20%	September 30, 2022
			5,781,866 5,313,626 254,971
			11,350,463
			6,256,129
			0.63%~4.65%

(i) Borrowing and repayment

For the nine months ended September 30, 2023 and 2022, the Group obtained from short-term borrowings amounting to $7,058,719 thousand and $8,587,638 thousand with an interest rate of 1.75% ～ 6.82% and 0.52% ～ 4.65%; the repayment amounting to $5,809,161 thousand and $6,220,454 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	September 30, 2023 $ 1,800,000 7,312,258 (2,550,261) (7) $ 6,561,990 $ 1,627,463 1.69%~5.63%	December 31, 2022 2,600,000 8,327,315 (2,470,335) (29) 8,456,951 712,939 1.40%~5.96%	September 30, 2022 1,300,000 6,919,143 (417,911) (71) 7,801,161 2,362,633 1.19%~3.32%

(i) Borrowing and repayment

For the nine months ended September 30, 2023 and 2022, the Group obtained from long-term borrowings amounting to $5,150,000 thousand and $4,050,000 thousand with an interest rate of 1.81% ～ 2.55% and 1.02% ～ 2.30%; the repayment amounting to $6,995,048 thousand and $8,124,238 thousand, respectively. Please refer to Note 6(y) for details of the interest expense.

(Continued)

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")	September 30, 2023 $ 1,455,800 36,505 $ 1,492,305 $ - $ 47,131	December 31, 2022 1,500,000 60,633 1,560,633 8,253 48,562	September 30, 2022 1,500,000 68,383
			1,568,383
			8,583
			48,562

(Continued)

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 September 30 2023 2022 $ 165 (1,651) $ (7,560) (7,788)	For the Nine Months Ended September 30 2023 2022 8,253 (4,292) (22,944) (23,480)
	2023 $ 165 $ (7,560)	2023 8,253 (22,944)

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)

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

(vii) As of September 30, 2023, the holders had converted their bonds into 3,125 and 1,422,567 ordinary shares of the Company, with the face value of $100 thousand and $44,100 thousand, and the conversion prices of $32.0 and $31.0 per share, respectively. However, the relevant statutory registration procedures of 1,422,567 ordinary shares have yet to be completed as the date of report.

(p) Lease liabilities

The details of the lease liabilities are as follows:

Current Non-current	September 30, 2023 $ 195,897 $ 1,335,510	December 31, 2022 188,005 1,479,111	September 30, 2022
			187,024
			1,525,685

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

The amounts recognized in profit or loss are as follows:

For the Three Months Ended September 30 2023 2022 $ 5,007 5,654 $ 2,270 2,532	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ 5,007 $ 2,270	2023 15,468 6,542	2022
		17,436
		6,742

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

Total cash outflow for leases	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2023 $ 163,056	2022
		169,588

(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.

(Continued)

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

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

(ii) Other leases

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

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

(q) Provisions

Non-current: Financial guarantee contracts Legal Total	September 30, 2023 $ 840 236,052 $ 236,892	December 31, 2022 9,112 236,052 245,164	September 30, 2022
			12,648 236,052
			248,700

(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.

(Continued)

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

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	September 30, 2023 $ 10,957 2,159 151 $ 13,267		December 31, 2022 14,247 5,664 - 19,911	September 30, 2022
				13,307 7,160 -
				20,467

For the three months and nine months ended September 30, 2023 and 2022, rental revenues from investment properties amounted to $4,672 thousand, $3,239 thousand, $11,166 thousand and $9,912 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:

For the Three Months Ended September 30 2023 2022 $ - - - - (149) 4 $ (149) 4	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ - - (149) $ (149)	2023 - - 1,024 1,024	2022
		25 5 44
		74

(ii) Defined contribution plans

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

For the Three Months Ended September 30 2023 2022 $ 11,764 12,417 717 649 8,646 8,085 102 81 $ 21,229 21,232	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ 11,764 717 8,646 102 $ 21,229	2023 36,052 2,095 26,584 306 65,037	2022
		37,088 1,950 23,969 263
		63,270

(Continued)

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

(iii) Short-term employee benefits

Paid leave and other liabilities	September 30, 2023 $ 9,031	December 31, 2022 11,190	September 30, 2022
			9,166

(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 Recognition of previously unrecognized tax losses Income tax expense (benefit)	For the Three Months Ended September 30 2023 2022 $ 77,672 31,412 2,866 3 - - 2 (40,840) 80,540 (9,425) (16,169) 9,840 - - $ 64,371 415	For the Nine Months Ended September 30 2023 2022 137,655 75,851 19,556 21,925 16,189 14,697 (10,676) (41,306) 162,724 71,167 (21,737) (41,923) - (42,250) 140,987 (13,006)
	2023 $ 77,672 2,866 - 2 80,540 (16,169) - $ 64,371	2023 137,655 19,556 16,189 (10,676) 162,724 (21,737) - 140,987

(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 nine months ended September 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 September 30, 2023, December 31 and September 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 $3,775,478 thousand, $3,761,221 thousand and $3,761,221 thousand respectively. All the proceeds from the issued capital have been remitted.

(Continued)

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	September 30, 2023 $ 643,830 33,352 47,131 843,035 6,219 $ 1,573,567	December 31, 2022 611,272 33,352 48,562 843,035 6,219 1,542,440	September 30, 2022
			611,272 33,352 48,562 843,035 5,945
			1,542,166

(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.

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

(Continued)

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

(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 September 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 September 30, 2022	Exchange Differences on Translation of Foreign Financial Statements $ 10,196 - (5,947) - - - - $ 4,249 $ (25,292) - 130,801 - - - - $ 105,509	Unrealized Gains (Losses) from Financial Assets Measured at FVOCI 51,013 - - (3,212) - - 1,903 49,704 78,077 - - (23,010) - - (173) 54,894	Non-controlling Interest 3,827,949 295,464 1,884 - 29,951 (127,113) - 4,028,135 3,973,038 149,147 47,360 1 13,398 (314,673) - 3,868,271	Total 3,889,158 295,464 (4,063) (3,212) 29,951 (127,113) 1,903
				4,082,088
				4,025,823 149,147 178,161 (23,009) 13,398 (314,673) (173)
				4,028,674

(v) Earnings per share

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

For the Three Months Ended September 30 2023 2022 $ 382,149 195,205 376,285 376,122 $ 1.02 0.52	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ 382,149 376,285 $ 1.02	2023 680,301 376,285 1.81	2022 633,918
		376,122
		1.69

(Continued)

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 September 30 2023 2022 $ 382,149 195,205 (6,213) (4,579) $ 375,936 190,626 376,285 376,122 557 557 46,961 46,360 423,803 423,039 $ 0.89 0.45	For the Nine Months Ended September 30 2023 2022 680,301 633,918 (26,608) (14,492) 653,693 619,426 376,285 376,122 746 881 46,961 46,360 423,992 423,363 1.54 1.46
	2023 $ 382,149 (6,213) $ 375,936 376,285 557 46,961 423,803 $ 0.89	2023 680,301 (26,608) 653,693 376,285 746 46,961 423,992 1.54

(w) Revenue from contracts with customers

(i) Disaggregation of revenue

For the Three Months Ended September 30, 2023	For the Three Months Ended September 30, 2023	For the Three Months Ended September 30, 2023	For the Three Months Ended September 30, 2023
Metal Manufacturing Segment $ 100,986 486,028 454,189 1,616,872 154,152 26,987 135,674 $ 2,974,888 $ 2,966,016 - - 8,872 $ 2,974,888	Real Estate Development Segment	Lifestyle Innovation Segment 163,013 - - - - - - 163,013 - - 113,090 49,923 163,013	Total
	2,311,246 - - - - - -		2,575,245 486,028 454,189 1,616,872 154,152 26,987 135,674
	2,311,246		5,449,147
	- 2,307,536 - 3,710		2,966,016 2,307,536 113,090 62,505
	2,311,246		5,449,147

(Continued)

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

For the Three Months Ended September 30, 2022	For the Three Months Ended September 30, 2022	For the Three Months Ended September 30, 2022	For the Three Months Ended September 30, 2022
Metal Manufacturing Segment Real Estate Development Segment Lifestyle Innovation Segment Total $ 105,280 5,795 171,520 282,595 545,666 - - 545,666 468,631 - - 468,631 1,655,486 - - 1,655,486 140,406 - - 140,406 183,727 - - 183,727 206,395 - - 206,395 $ 3,305,591 5,795 171,520 3,482,906 $ 3,286,068 - - 3,286,068 - 560 - 560 - - 105,512 105,512 19,523 5,235 66,008 90,766 $ 3,305,591 5,795 171,520 3,482,906 For the Nine Months Ended September 30, 2023			Total
			282,595 545,666 468,631 1,655,486 140,406 183,727 206,395
			3,482,906
			3,286,068 560 105,512 90,766
			3,482,906
Metal Manufacturing Segment $ 247,536 1,461,149 1,377,824 4,290,123 411,408 83,523 440,417 $ 8,311,980 $ 8,285,941 - - 26,039 $ 8,311,980	Real Estate Development Segment	Lifestyle Innovation Segment 476,096 - - - - - - 476,096 - - 326,851 149,245 476,096	Total
	4,193,783 - - - - - -		4,917,415 1,461,149 1,377,824 4,290,123 411,408 83,523 440,417
	4,193,783		12,981,859
	- 4,182,617 - 11,166		8,285,941 4,182,617 326,851 186,450
	4,193,783		12,981,859

(Continued)

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

			For the Nine Months Ended September 30, 2022	For the Nine Months Ended September 30, 2022	For the Nine Months Ended September 30, 2022	For the Nine Months Ended September 30, 2022	For the Nine Months Ended September 30, 2022	For the Nine Months Ended September 30, 2022	For the Nine Months Ended September 30, 2022
			Metal	Real Estate		Lifestyle
		Manufacturing		Development		Innovation
		Segment		Segment		Segment			Total
Major geographic markets:
	Taiwan	$	402,847		1,572,420		462,635		2,437,902
	United States		1,492,913		-		-		1,492,913
	Japan		1,329,803		-		-		1,329,803
	China		4,410,606		-		-		4,410,606
	Europe		415,142		-		-		415,142
	South America		510,211		-		-		510,211
	Others		522,254		-		-		522,254
		$	9,083,776		1,572,420		462,635		11,118,831
Major product/service lines:
	Iron casting hardware	$	9,028,378		-		-		9,028,378
	Construction		-		1,559,551		-		1,559,551
	Counter commissions		-		-		286,742		286,742
	Others		55,398		12,869		175,893		244,160
		$	9,083,776		1,572,420		462,635		11,118,831
)	Contract balances
			September		30, December		31,	September 30,
			2023			2022			2022
	Notes and accounts receivable		$ 3,858,787			3,819,958			4,111,737
	Less: Loss allowance			(7,570)		(5,348)			(8,201)
	Total		$ 3,851,217			3,814,610			4,103,536
	Contract assets		$	-		-			-
	Contract liabilities–Advance real		$ 4,801,175			4,825,091			4,519,236
	estate receipts
	Contract liabilities–Advance receipts		$	45,090		39,625			48,170

(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 nine months ended September 30, 2023 and 2022, that were included in the contract liabilities balance at the beginning of the period were $933,944 thousand and $346,556 thousand, respectively.

(Continued)

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

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

(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 nine months ended September 30, 2023 and 2022, appropriated employees’ compensation by $10,846 thousand, $5,005 thousand, $19,786 thousand and $16,391 thousand, respectively, and appropriated remuneration of directors by $9,685 thousand, $4,469 thousand, $17,667 thousand and $14,635 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)

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:

For the Three Months Ended September 30 2023 2022 $ 10,976 4,780 2,489 3,533 $ 13,465 8,313	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ 10,976 2,489 $ 13,465	2023 44,096 9,624 53,720	2022
		13,723 10,549
		24,272

(ii) Other income

The information on other income is listed as follows:

For the Three Months Ended September 30 2023 2022 $ 5,154 5,375 1,162 - 21,269 22,924 $ 27,585 28,299	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ 5,154 1,162 21,269 $ 27,585	2023 16,639 15,689 105,835 138,163	2022
		15,271 16,341 59,777
		91,389

(iii) Other gains and losses

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

For the Three Months Ended September 30 2023 2022 $ (628) (1,078) 21 23 19,393 85,403 165 (1,651) (93) 5 $ 18,858 82,702	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ (628) 21 19,393 165 (93) $ 18,858	2023 (3,826) 25 40,031 8,253 (453) 44,030	2022
		(5,701) 23 136,042 (4,292) (424
		125,648

(Continued)

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

(iv) Finance costs

The information on interest expense is listed as follows:

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 September 30 2023 2022 $ 146,185 95,331 5,007 5,654 (47,565) (25,002) (7,560) (7,788) 366 335 $ 96,433 68,530	For the Nine Months Ended September 30 2023 2022 425,671 249,014 15,468 17,436 (115,757) (61,829) (22,944) (23,480) 873 1,175 303,311 182,316
	2023 $ 146,185 5,007 (47,565) (7,560) 366 $ 96,433	2023 425,671 15,468 (115,757) (22,944) 873 303,311

(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 nine months ended September 30, 2023 and 2022, please refer to Note 6(c).

(Continued)

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

(ii) Liquidity risk

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

Contractual Cash Flow September 30, 2023 Non-derivative financial liabilities Bank borrowings $ 22,741,338 Bonds payable 1,455,800 Lease liabilities 1,721,388 Notes and accounts payables (including related parties) 3,294,767 Other payables (including related parties) 1,536,029 $ 30,749,322 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 September 30, 2022 Non-derivative financial liabilities Bank borrowings $ 20,177,042 Bonds payable 1,500,000 Lease liabilities 1,923,333 Notes and accounts payables (including related parties) 3,047,590 Other payables (including related parties) 1,483,148 $ 28,131,113	Within 6 Months 6,064,804 - 107,071 3,294,767 1,536,029 11,002,671 6,931,888 - 103,927 3,070,242 1,383,980 11,490,037 6,972,235 - 106,106 3,047,590 1,483,148 11,609,079	6-12 Months 5,466,437 - 107,143 - - 5,573,580 4,608,521 - 104,298 - - 4,712,819 6,127,378 - 101,777 - - 6,229,155	1-2 Years 5,064,969 1,455,800 207,072 - - 6,727,841 6,306,770 - 211,734 - - 6,518,504 3,082,703 - 211,287 - - 3,293,990	2-5 Years 4,177,797 - 601,674 - - 4,779,471 3,524,426 1,500,000 603,892 - - 5,628,318 3,994,726 1,500,000 605,687 - - 6,100,413	Over 5 Years
					1,967,331 - 698,428 - -
					2,665,759
					1,966,955 - 848,463 - -
					2,815,418
					- - 898,476 - -
					898,476

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

(Continued)

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

(iii) Currency risk

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

F	De	September 30, 2022	September 30, 2022
	Foreign Currency 16,689 139,710 1,261 1,112 3,086 97,524 59,696 8,448 29,564 1,995 219,637	Foreign Currency 15,320 131,181 1,174 1,205 3,072 101,986 70,218 1,073 111,523 2,695 263,784	Exchange Rate NTD 31.75 486,414 7.10 4,164,988 144.25 37,282 31.26 37,666 6.99 96,035 0.22 22,447 0.05 15,455 0.13 4,335 7.10 3,540,867 6.99 84,259 0.13 1,065,687
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 September 30, 2023 and 2022 would have increased (decreased) the after-tax net income for the three months and nine months ended September 30, 2023 and 2022 by $2,383 thousand, $3,752 thousand, $2,039 thousand and $1,043 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 nine months ended September 30, 2023 and 2022, the foreign exchange gains (losses), including both realized and unrealized, amounted to $19,393 thousand, $85,403 thousand, $40,031 thousand and $136,042 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)

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 $26,194 thousand, $28,521 thousand, $95,970 thousand and $72,354 thousand for the three months and nine months ended September 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 Nine Months Ended September 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 - 17,710 (858) $ (19,615) - (17,710) 858	For the Nine Months Ended September 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 - 17,710 (858) $ (19,615) - (17,710) 858
	2023 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 19,615 - $ (19,615) -
	Other Comprehensive Income (net of tax) $ 19,615 $ (19,615)	Other Comprehensive Income (net of tax) 17,710 (17,710)

(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:

	September 30, 2023	September 30, 2023	September 30, 2023
Book Value $ 196,151 $ 12,102,724 $ 29,831,306		Fair Value
	Level 1 - - -	Level 2 - - -	Level 3 196,151 - -	Total
				196,151
				-
				-

(Continued)

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

	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 Level 3 - - 179,363 - - 8,253 - - - - - - September 30, 2022			Total
				179,363
				8,253
				-
				-

Book Value $ 177,098 $ 8,583 $ 9,819,435 $ 27,406,152		Fair Value
	Level 1 - - - -	Level 2 - - - -	Level 3 177,098 8,583 - -	Total
				177,098
				8,583
				-
				-

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)

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 nine months ended September 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 September 30, 2023 Balance on January 1, 2022 Purchase Disposals Total gains or losses Recognized as other comprehensive income Capital reduction Balance on September 30, 2022	Non-current Financial Assets at FVOCI Equity Instrument without Quoted Price $ 179,363 20,000 (3,212) $ 196,151 $ 215,295 30,000 (37,190) (23,007) (8,000) $ 177,098

(Continued)

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 September 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 September 30 2023 2022 $ - (5,244)	For the Nine Months Ended September 30 2023 2022 (3,212) (23,007)
	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 September 30, 2023, December 31, 2022 and September 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)

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 September 30, 2023, December 31, 2022 and September 30, 2022,were 3.33%, 4.68% and 5.32%, respectively.) ‧Discounting rate without market liquidity (As of September 30, 2023, December 31, 2022 and September 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:

September 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 September 30, 2022 Financial assets at FVOCI Equity investments without an active market	Inputs % 3.33 % 4.68 % 5.32	Fluctuation in Inputs 1% 1% 1%	Other Comprehensive Income Favorable Unfavorable 5,404 (5,128) 5,427 (5,158) 5,305 (5,044)

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)

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 September 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 410,360 Cash flows 763,142	Non-cash changes Reclassification (65,775) Non-cash changes Reclassification (115,136)	September 30, 2023
				3,156,148
				September 30, 2022
				2,754,437

(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)

(Continued)

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

Name of Related Party

ADVANCISION (CAYMAN) Industries Co., Ltd. (ADVANCISION (CAYMAN))

Beyond Fitness Co., Ltd. (Beyond Fitness) 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) Jhao Hong Investment Co., Ltd. (Jhao Hong Investment) Yong Jhu Investment Co., Ltd. (Yong Jhu Investment) Mr. Ming Shiann, Ho Mr.Dai Jun, Lin Mr. Ting Fung, Lin

Relationship with the Group Associate of subsidiaries

Associate of subsidiaries 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 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:

	Sales	Sales	Sales	Sales	Notes and Accounts Receivables September 30, 2023 December 31, 2022 September 30, 2022 5,918 8,973 3,645 30 - - 23 190 34 5,971 9,163 3,679	Notes and Accounts Receivables September 30, 2023 December 31, 2022 September 30, 2022 5,918 8,973 3,645 30 - - 23 190 34 5,971 9,163 3,679
	For the Three Months Ended September 30		For the Nine Months Ended September 30 2023 2022 4,261 6,201 185 281 529 1,441 4,975 7,923		December 31, 2022 8,973 - 190 9,163
	2023	2022 1,966 2 267 2,235		2022 6,201 281 1,441 7,923
$ 1,071 71 173 $ 1,315						3,645 - 34
						3,679

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

(Continued)

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

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

Revenue recognized	Revenue recognized	Revenue recognized	Revenue recognized	Advance real estate receipts September 30, 2023 December 31, 2022 September 30, 2022 72,201 83,245 79,201	Advance real estate receipts September 30, 2023 December 31, 2022 September 30, 2022 72,201 83,245 79,201
For the Three Months Ended September 30		For the Nine Months Ended September 30 2023 2022 96,272 -		December 31, 2022 83,245
	2022 -		2022 -
					79,201

As of September 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:

Purchases	Purchases	Purchases	Purchases	Notes and Accounts Payable September 30, 2023 December 31, 2022 September 30, 2022 38,652 39,603 32,850 1 - - 3,620 698 698 42,273 40,301 33,548	Notes and Accounts Payable September 30, 2023 December 31, 2022 September 30, 2022 38,652 39,603 32,850 1 - - 3,620 698 698 42,273 40,301 33,548
For the Three Months Ended September 30		For the Nine Months Ended September 30 2023 2022 96,851 74,624 2,398 17 4,236 17 103,485 74,658		December 31, 2022 39,603 - 698 40,301
	2022 30,189 9 - 30,198		2022 74,624 17 17 74,658
					32,850 - 698
					33,548

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 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ 608 608 1,824 1,824 - 83 - 379 $ 608 691 1,824 2,203	Rental Expenses For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ 608 608 1,824 1,824 - 83 - 379 $ 608 691 1,824 2,203	Rental Expenses For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ 608 608 1,824 1,824 - 83 - 379 $ 608 691 1,824 2,203
		For the Nine Months Ended September 30
		2023 1,824 - 1,824	2022
			1,824 379
			2,203

(Continued)

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

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)
September 30, 2023 $ - 443 $ 443	December 31, 2022 - 443 443	September 30, 2022
		10 443
		453

2) Rental revenues

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

Rental Revenues	Rental Revenues	Rental Revenues	Rental Revenues
For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ 66 66 197 197 15 14 45 554 $ 81 80 242 751 Guarantee Deposit Received (Recognized under other non-current liabilities) September 30, 2023 December 31, 2022 September 30, 2022 $ 300 300 300			For the Nine Months Ended September 30
	2023
$ $	66 15
	81

	September 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 September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ - - - 150 2,075 1,594 4,224 3,902 $ 2,075 1,594 4,224 4,052	Service Revenues For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ - - - 150 2,075 1,594 4,224 3,902 $ 2,075 1,594 4,224 4,052	Service Revenues For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ - - - 150 2,075 1,594 4,224 3,902 $ 2,075 1,594 4,224 4,052	Service Revenues For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 $ - - - 150 2,075 1,594 4,224 3,902 $ 2,075 1,594 4,224 4,052
For the Three Months Ended September 30 2023 2022 $ - - 2,075 1,594 $ 2,075 1,594
2023		2023 - 4,224 4,224	2022 150 3,902 4,052
$ - 2,075 $ 2,075	- 1,594 1,594

(Continued)

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

(v) Non-performing receivables

	Total Claims
September 30, 2023 December 31, 2022 $ 796,845 796,845 Costs of Claims		September 30, 2022
		796,845

	December 31, 2022 575,000	September 30, 2022
		575,000

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:

Borrowing Limits	Borrowing Limits
September 30, 2023 December 31, 2022 September 30, 2022 $ 3,400,000 1,900,000 1,950,000 32,500 22,500 22,500 $ 3,432,500 1,922,500 1,972,500 Actual Usage Amount		September 30, 2022
		1,950,000 22,500
		1,972,500
	December 31, 2022 1,475,000 13,948 1,488,948	September 30, 2022
		1,510,000 15,246
		1,525,246

(vii) Guarantee for bank borrowings

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

(Continued)

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

(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 September 30 2023 2022 $ 1,182 -	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2023 $ 1,182	2023 1,334	2022
			-

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

Other related parties	September 30, 2023 $ 360	December 31, 2022 344	September 30, 2022
			344

(ix) Other transactions
1) The information on donation to related parties is as follows:

Other related parties: Foundation	For the Three Months Ended September 30 2023 2022 $ - 5,400	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2023 $ -	2023 4,225	2022
			5,425

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

Other Expenses	Other Expenses	Other Expenses
For the Three Months Ended September 30 2023 2022 $ 1 1 26 296 - - $ 27 297	For the Nine Months Ended September 30
2023 $ 1 26 - $ 27	2023 3 26 115 144	2022
		2 486 -
		488

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

Interest Revenues	Interest Revenues	Interest Revenues
For the Three Months Ended September 30 2023 2022 $ 2,455 3,504 34 29 $ 2,489 3,533	For the Nine Months Ended September 30
2023 $ 2,455 34 $ 2,489	2023 9,506 118 9,624	2022
		10,433 116
		10,549

(Continued)

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

4) Other receivables and advance payments from related parties

Other Receivables (including advance payments)	Other Receivables (including advance payments)	Other Receivables (including advance payments)
September 30, 2023 $ 77 23 189 2 $ 291	December 31, 2022 1,767 23 1,335 1,763 4,888	September 30, 2022
		14,736 23 199 7
		14,965

5) Other payables and advance receipts from related parties

Other Payables (including advance receipts)	Other Payables (including advance receipts)	Other Payables (including advance receipts)
September 30, 2023 $ 28 1,406 - $ 1,434	December 31, 2022 554 192 3 749	September 30, 2022
		313 2,800 -
		3,113

(d) Key management transactions

The compensation of key management is as follows:

For the Three Months Ended September 30 2023 2022 $ 41,054 24,319 417 404 $ 41,471 24,723	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2023 $ 41,054 417 $ 41,471	2023 113,319 1,467 114,786	2022
		96,996 3,450
		100,446

(Continued)

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

(8) Pledged assets

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

Pledged Assets	Object	September 30, 2023 $ 1,424,715 267,606 591,266 5,384,525 10,052,463 7,820 28,845 881,480 $ 18,638,720	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	September 30, 2022 1,424,715 292,617 592,817 7,863,602 7,338,789 7,820 40,976 932,005
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
				18,493,341

(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	September 30, 2023 $ -	December 31, 2022 286	September 30, 2022
			112

(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)	September 30, 2023 $ 15,492,021 $ 10,290,631	December 31, 2022 15,572,738 8,730,814	September 30, 2022
			16,239,498
			10,444,299

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

(Continued)

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

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

September 30, 2023 December 31, 2022 September 30, 2022 Total contract price $ 14,907,963 17,267,153 17,446,973 Total amounts received under contracts (recognized under current contract liabilities) $ 4,801,175 4,825,091 4,519,236 (iv) The Group’s purchase contracts of building capacity is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Total contract price $ 168,748 168,748 168,748 Total amounts paid under contracts (recognized under prepayments) $ 84,374 84,374 84,374 (v) The Group’s security deposits paid to landlords for joint construction projects is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Security deposits of joint construction projects (recognized under other current and non-current financial assets) $ 399,878 306,707 307,307 (vi) The Group’s security deposits for renting real estates is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Security deposits (recognized under other current and non-current financial assets) $ 101,540 101,650 103,650 (vii) The Group’s unrecognized contractual commitments for purchasing land is as follows:	September 30, 2023 December 31, 2022 September 30, 2022 Total contract price $ 14,907,963 17,267,153 17,446,973 Total amounts received under contracts (recognized under current contract liabilities) $ 4,801,175 4,825,091 4,519,236 (iv) The Group’s purchase contracts of building capacity is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Total contract price $ 168,748 168,748 168,748 Total amounts paid under contracts (recognized under prepayments) $ 84,374 84,374 84,374 (v) The Group’s security deposits paid to landlords for joint construction projects is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Security deposits of joint construction projects (recognized under other current and non-current financial assets) $ 399,878 306,707 307,307 (vi) The Group’s security deposits for renting real estates is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Security deposits (recognized under other current and non-current financial assets) $ 101,540 101,650 103,650 (vii) The Group’s unrecognized contractual commitments for purchasing land is as follows:	September 30, 2023 December 31, 2022 September 30, 2022 Total contract price $ 14,907,963 17,267,153 17,446,973 Total amounts received under contracts (recognized under current contract liabilities) $ 4,801,175 4,825,091 4,519,236 (iv) The Group’s purchase contracts of building capacity is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Total contract price $ 168,748 168,748 168,748 Total amounts paid under contracts (recognized under prepayments) $ 84,374 84,374 84,374 (v) The Group’s security deposits paid to landlords for joint construction projects is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Security deposits of joint construction projects (recognized under other current and non-current financial assets) $ 399,878 306,707 307,307 (vi) The Group’s security deposits for renting real estates is as follows: September 30, 2023 December 31, 2022 September 30, 2022 Security deposits (recognized under other current and non-current financial assets) $ 101,540 101,650 103,650 (vii) The Group’s unrecognized contractual commitments for purchasing land is as follows:	September 30, 2022
			17,446,973
			4,519,236
			September 30, 2022
			168,748
			84,374
			is as follows: September 30, 2022
			307,307
			September 30, 2022
			103,650
Total contract price Total amounts paid under contracts (recognized under inventories`－` prepayments for land)	September 30, 2023 $ 67,080 $ 60,070	December 31, 2022 839,376 226,765	September 30, 2022
			82,080
			64,570

		September 30,	December 31,	September 30,
		2023	2022	2022
Total contract price	$	67,080	839,376	82,080
Total amounts paid under contracts
(recognized under inventories`－`
prepayments for land)	$	60,070	226,765	64,570

(Continued)

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

(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 September 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, as of September 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.
(b) Contingencies
(i) Please refer to Note 7 for the Group’s guarantees and endorsements for related parties’ loans as of September 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

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.

(Continued)

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

Litigant Issue Current Status Sunflower Since 2011, Sunflower Investment Investment had received several administrative penalties approved by National Tax Bureau of Taipei which arose from the withholding tax, valueadded tax, enterprise income tax and undistributed earning tax of the Daguangsan nonperforming receivables. Sunflower Investment has sought administrative remedy for the aforementioned verdict.

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)

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

By function By item		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
		2023		2022
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	174,518	210,377	384,895	183,770	164,244	348,014
Labor and health insurance	15,009	14,376	29,385	15,782	13,181	28,963
Pension	11,764	9,316	21,080	12,417	8,819	21,236
Others	20,212	14,467	34,679	22,222	10,161	32,383
Depreciation	187,993	79,585	267,578	200,343	78,488	278,831
Amortization	354	776	1,130	326	1,077	1,403

By function By item		For the Nine Months Ended September 30
		2023		2022
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	506,444	571,084	1,077,528	536,673	487,564	1,024,237
Labor and health insurance	45,457	40,398	85,855	46,903	38,482	85,385
Pension	36,052	30,009	66,061	37,113	26,231	63,344
Others	55,395	39,754	95,149	51,995	38,958	90,953
Depreciation	559,453	235,795	795,248	563,080	233,993	797,073
Amortization	1,063	2,442	3,505	981	3,200	4,181

(Continued)

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

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions for the nine months ended September 30, 2023, required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	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		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	32,270	32,270	-	4.00%	2	-	Operation requirements	-		-	3,936,666	5,248,888
0	The Company	Taichung CMP Hospitality	Accounts receivable due from related parties	Yes	1,260,000	1,260,000	-	2.50%	2	-	Operation requirements	-		-	3,936,666	5,248,888
1	Tianjin CMT	Suzhou CMB	Accounts receivable due from related parties	Yes	111,250	-	-	0.75%	2	-	Operation requirements	-		-	330,150	440,200
1	Tianjin CMT	CMH	Accounts receivable due from related parties	Yes	311,500	309,400	309,400	0.75%	2	-	Operation requirements	-		-	330,150	440,200
2	Suzhou CMS	CMH	Accounts receivable due from related parties	Yes	934,500	707,200	707,200	0.75%	2	-	Operation requirements	-		-	1,382,108	1,842,811
3	CMW (Tianjin)	CMH	Accounts receivable due from related parties	Yes	221,000	221,000	221,000	0.75%	2	-	Operation requirements	-		-	1,718,872	2,291,829
4	CMAI	Pilot	Accounts receivable due from related parties	Yes	39,975	35,497	35,497	3.05%	2	-	Operation requirements	-	Land, buildings and improvement	72,723	53,302	71,069
5	CMW (C.I.)	CMI	Accounts receivable due from related parties	Yes	445,000	442,000	180,889	6.5%	2	-	Operation requirements	-		-	1,720,740	2,294,321

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

Note 2: 1. For business transactions.
For the necessity of short-term financing.

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

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

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

(Continued)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES Notes to 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	5,248,888	160,000	160,000	90,000	-	% 1.22	6,561,110	Y	N	N
0	The Company	The Hotel National	1	5,248,888	50,000	50,000	-	-	% 0.38	6,561,110	Y	N	N
0	The Company	Shangrila Tourism	1	5,248,888	1,226,500	624,000	387,500	-	% 4.76	6,561,110	Y	N	N
0	The Company	The Splendor Hospitality	2	5,248,888	3,400,000	3,400,000	1,450,000	-	% 25.91	6,561,110	N	N	N
0	The Company	CMAAN Health	2	5,248,888	32,500	32,500	10,443	-	% 0.25	6,561,110	N	N	N
1	CMI	UEA	3	3,915,066	864,940	690,182	690,182	-	% 7.05	4,893,833	N	N	N

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

(iii) Securities held as of September 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	% 6.17	54,986
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	-

(Continued)

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

(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)
			Purchase/Sale	Amount	Percentage of Total Purchases/Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/Accounts Receivable (Payable)
Suzhou CMS	CMI	Subsidiaries	Sale	667,772	% 38.56	180 days	-	-	1,847,159	79.78%
Suzhou CMB	CMI	Subsidiaries	Sale	196,585	% 15.72	180 days	-	-	266,987	32.22%
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Sale	755,974	% 24.84	180 days	-	-	1,731,943	51.81%

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

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

(In Thousands of NTD/In CNY)

Name of Company	Counter-party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Accounts receivable due from related parties 1,731,943	0.59	-	-	CNY 15,783,596	-
Tianjin CMT	CMI	Subsidiaries	Accounts receivable due from related parties 297,710	-	-	-	-	-
Suzhou CMB	CMI	Subsidiaries	Accounts receivable due from related parties 266,987	0.91	-	-	CNY 9,120,885	-
Suzhou CMS	CMI	Subsidiaries	Accounts receivable due from related parties 1,847,159	0.48	-	-	-	-
CMW (C.I.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 180,889	Note 2	-	-	-	-
CMW(Tianjin)	CMH	Affiliates	Accounts receivable due from related parties, other 221,000	Note 2	-	-	-	-
Tianjin CMT	CMH	Affiliates	Accounts receivable due from related parties, other 309,400	Note 2	-	-	-	-
Suzhou CMS	CMH	Affiliates	Accounts receivable due from related parties, other 707,200	Note 2	-	-	-	-

Note 1: Intra-group transactions have been eliminated in the consolidated financial statements.

Note 2: Balance of loans to other parties.

(ix) Trading in derivative instruments: None.

(Continued)

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

(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	30,630	90 days	0.24%
0	China Metal Products	Atrans Precision	1	Operating revenue	21,675	60~90 days	0.17%
1	CMW (Tianjin)	CMW (C.I.)	2	Operating revenue	755,974	180 days	5.82%
3	Suzhou CMS	CMI	2	Operating revenue	667,772	180 days	5.14%
3	Suzhou CMS	Suzhou CMB	3	Operating revenue	29,193	90 days	0.22%
3	Suzhou CMS	CMP (H.K)	2	Operating revenue	34,756	180 days	0.27%
4	Suzhou CMB	Suzhou CMS	3	Operating revenue	40,621	90 days	0.31%
4	Suzhou CMB	CMI	2	Operating revenue	196,585	180 days	1.51%
4	Suzhou CMB	CMB(H.K.)	2	Operating revenue	67,234	180 days	0.52%
5	National Management	China Metal Products	2	Operating revenue	63,224	OA25 days	0.49%
7	CMW(C.I.)	CMAI	3	Operating revenue	11,603	180 days	0.09%
9	CMH	CMW (Tianjin)	3	Operating revenue	84,990	90 days	0.65%
9	CMH	Suzhou CMB	3	Operating revenue	17,471	90 days	0.13%
9	CMH	Suzhou CMS	3	Operating revenue	33,243	90 days	0.26%
10	CMAI(N.A.)	CMAI	2	Operating revenue	47,817	90~120 days	0.37%
10	CMAI(N.A.)	CMW (C.I.)	3	Operating revenue	15,853	90~120 days	0.12%
10	CMJ	CMI	3	Operating revenue	10,729	90~120 days	0.08%
0	China Metal Products	CMJ	1	Accounts receivable due from related parties	10,300	90 days	0.02%
1	CMW (Tianjin)	CMW(C.I.)	2	Accounts receivable due from related parties	1,731,943	180 days	3.27%
2	Tianjin CMT	CMI	2	Accounts receivable due from related parties	297,710	180 days	0.56%
2	Tianjin CMT	CMW (Tianjin)	3	Accounts receivable due from related parties	43,958	90 days	0.08%
9	CMH	Suzhou CMS	3	Accounts receivable due from related parties	23,710	90 days	0.04%
9	CMH	CMW (Tianjin)	3	Accounts receivable due from related parties	15,179	90 days	0.03%
9	CMH	Suzhou CMB	3	Accounts receivable due from related parties	14,759	90 days	0.03%
3	Suzhou CMS	CMI	2	Accounts receivable due from related parties	1,847,159	180 days	3.49%
3	Suzhou CMS	CMP (H.K.)	2	Accounts receivable due from related parties	11,330	180 days	0.02%
4	Suzhou CMB	CMB (H.K.)	2	Accounts receivable due from related parties	70,358	180 days	0.13%
4	Suzhou CMB	CMI	2	Accounts receivable due from related parties	266,987	180 days	0.50%
4	Suzhou CMB	Suzhou CMS	3	Accounts receivable due from related parties	25,372	90 days	0.05%
10	CMAI(N.A.)	CMAI	2	Accounts receivable due from related parties	66,377	90~120 days	0.13%
2	Tianjin CMT	Suzhou CMS	3	Other receivables due from related parties	11,516	-	0.02%
2	Tianjin CMT	CMH	3	Other receivables due from related parties	309,400	-	0.59%
3	Suzhou CMS	CMH	3	Other receivables due from related parties	707,200	-	1.34%
1	CMW (Tianjin)	CMH	3	Other receivables due from related parties	221,000	-	0.42%
6	CMI	CMH	1	Other receivables due from related parties	24,742	-	0.05%
7	CMW(C.I.)	CMW (Tianjin)	1	Other receivables due from related parties	47,000	-	0.09%

(Continued)

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

No. (Note 1)	Name of Company	Name of Counter-party	Nature of Relationship (Note 2)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)
				Account	Amount	Trading Terms	Percentage of the Total Consolidated Revenue or Total Assets (Note 4)
7	CMW(C.I.)	CMI	2	Other receivables due from related parties	180,889	-	0.34%
10	CMAI (N.A)	CMAI	2	Other receivables due from related parties	20,156	-	0.04%
11	CMAI	Pilot	1	Other receivables due from related parties	35,497	-	0.07%
11	CMAI	CMAI(N.A.)	1	Other receivables due from related parties	58,544	-	0.11%
8	CMB(H.K.)	Suzhou CMB	1	Other long-tern receivables due from related parties	27,609	-	0.05%

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

Subsidiaries – In sequence from 1.

Note 2: Relationship is classified into three types:

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

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

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

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

(b) Information on investees:

The following is the information on investees for the nine months ended September 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 September 30, 2023	Balance as of September 30, 2023	Balance as of September 30, 2023	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				September 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	7,654,479	163,242	163,242	Subsidiaries
The Company	Sunflower Investment	Taiwan	Investing	99,096	99,096	67,013,057	% 99.01	980,555	136,845	135,490	Subsidiaries
The Company	Atrans Precision	Taiwan	Vehicle parts processing	247,218	247,218	25,782,134	% 72.24	443,947	61,430	45,600	Subsidiaries
The Company	CMJ	Japan	Cast iron product retailing	4,887	4,887	500	% 83.33	120,519	27,305	22,753	Subsidiaries
The Company	CMAI	Hong Kong	Vehicle parts retailing	24,036	24,036	1,000,000	% 100.00	207,272	28,369	28,369	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	4,534,118	864,191	487,435	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)	(561)	-	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	1,286,279	167	(1,287)	Subsidiaries
The Company	National Management	Taiwan	Management and consulting services	10,000	10,000	1,000,000	% 100.00	22,122	6,385	6,385	Subsidiaries
The Company	The Splendor Hospitality	Taiwan	International tourist hotel services	1,125,000	1,125,000	32,500,000	% 50.00	247,948	(25,291)	(22,151)	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	377,444	(45,436)	(44,321)	Subsidiaries
The Company	CMAAN Health	Taiwan	Management and consulting services	50,000	50,000	5,000,000	% 50.00	46,136	6,275	3,020	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	521,535	(17,161)	(17,161)	Subsidiaries
The Company	Calligraphy Greenway Plaza Co., Ltd	Taiwan	Management and consulting services	59,000	59,000	5,900,000	% 100.00	66,059	6,341	6,341	Subsidiaries
The Company	Great Naturalistic Block	Taiwan	Management and consulting services	20,000	-	2,000,000	% 100.00	19,265	(735)	(735)	Subsidiaries
Sunflower Investment	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	288,437	288,437	42,568,300	% 15.18	1,179,989	864,191	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Astrans Precision	Taiwan	Vehicle parts processing	77,836	77,836	4,737,380	% 13.27	80,943	61,430	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	(7,726)	(561)	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	11,662	(2,475)	Exempt from disclosure	Investee accounted for using equity method

(Continued)

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

Name of Investor	Name of Investee	Location	Main Businesses	Original Investment Amount	Original Investment Amount	Balance as of September 30, 2023	Balance as of September 30, 2023	Balance as of September 30, 2023	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				September 30, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
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 256,955,505	USD 7,378,513	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 1,291,139,426	CNY 28,918,079	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 1,350,942,843	CNY 29,220,539	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 588,893,779	CNY (8,444,981)	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 1,293,173,966	CNY 28,918,079	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 3,038,408	USD 459,656	Exempt from disclosure	Subsidiaries of CMAI
CMAI Holding	Pilot	USA	Assets leasing	USD 8,328,644	USD 8,328,644	-	% 100.00	USD 3,038,408	USD 459,656	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 1,907,070	USD 405,221	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	73,321	(5)	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 1,114,934	USD (80)	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	323,211	(63,396)	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equity method
PUJEN Land Development	CHINGENG Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	1,500	1,500	150,000	% 50.00	5,369	(81)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUJEN CHENGMEI Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	199,500	129,500	19,950,000	% 70.00	173,831	(27)	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	31,553	(2,836)	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	5,457	783	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	3,210	2,404	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)

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 September 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
Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	968,100 (USD30,000)	2	388,238	-	-	388,238	1,330 (CNY303)	83.27%	1,108 (CNY252)	1,100,501 (CNY248,982)	82,542
Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	774,480 (USD24,000)	2	423,406	-	-	423,406	121,094 (CNY27,584)	83.27%	100,753 (CNY22,951)	4,607,544 (CNY1,042,431)	14,601
Cast iron product designing, manufacturing and retailing	2,646,140 (USD82,000)	2	-	-	-	-	(30,342) (CNY(6,912))	83.27%	(25,266) (CNY(5,755))	2,604,442 (CNY589,240)	-
Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling	1,032,640 (USD32,000)	2	-	-	-	-	217,546 (CNY49,555)	83.27%	188,457 (CNY42,929)	5,707,342 (CNY1,291,254)	-
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	1,032,640 (USD32,000)	2	-	-	-	-	(109,890) (CNY(25,032))	83.27%	(91,505) (CNY(20,844))	717,830 (CNY162,405)	-
Cast iron product retailing	3,227 (USD100)	2	-	-	-	-	3,972 (JPY17,699)	83.33%	3,310 (JPY14,748)	52,953 (JPY244,928)	-

(Continued)

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 September 30, 2023 Investment Amount Authorized by the Investment Commission, MOEA (Note 6) Upper Limit on Investment (Note 4) 811,644 6,732,199 (USD 208,621 ) -
Accumulated Investment in Mainland China as of September 30, 2023	Investment Amount Authorized by the Investment Commission, MOEA (Note 6)	Upper Limit on Investment (Note 4)
811,644	6,732,199 (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 September 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.	56,369,965	% 14.93
Mr. Ming Shiann, Ho	26,312,540	% 6.96

(Continued)

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

(14) Segment information:

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

For the Three Months Ended September 30, 2023 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Three Months Ended September 30, 2022 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Nine Months Ended September 30, 2023 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Nine Months Ended September 30, 2022 Revenue from external customers $ Intersegment revenues Total revenue $ Reportable segment profit or loss $	Metal Manufacturing Segment	Real Estate Development Segment 2,311,246 850 2,312,096 619,550 5,795 1,252 7,047 (56,357) 4,193,783 2,550 4,196,333 1,098,286 1,572,420 2,950 1,575,370 315,864	Lifestyle Innovation Segment 163,013 24,911 187,924 (548) 171,520 21,722 193,242 19,229 476,096 71,340 547,436 9,521 462,635 59,667 522,302 25,748	Reconciliation and Elimination - (779,924) (779,924) (1,105) - (913,841) (913,841) 56,821 - (2,177,536) (2,177,536) (247,793) - (2,777,930) (2,777,930) (227,445)	Total
	$ 2,974,888 754,163 $ 3,729,051 $ (11,393) $ 3,305,591 890,867 $ 4,196,458 $ 201,819 $ 8,311,980 2,103,646 $ 10,415,626 $ 256,738 9,083,776 2,715,313 11,799,089 655,892				5,449,147 -
					5,449,147
					606,504
					3,482,906 -
					3,482,906
					221,512
					12,981,859 -
					12,981,859
					1,116,752
					11,118,831 -
					11,118,831
					770,059

Note 1: The amount of assets and liabilities of the Group’s reportable segments was not provided to the management. It is not required for disclosure.

Note 2: The information on the "Lifestyle Hospitality Segment" was adjusted to "Lifestyle Innovation Segment" instead.

AI assistant

CMP — Interim / Quarterly Report 2023

51855_rns_2023-11-13_3747718d-008f-4669-abe8-b79e0a2d2ea3.pdf

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2023, December 31, 2022, and September 30, 2022

(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 Nine Months Ended September 30, 2023 and 2022

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

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

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Nine Months Ended September 30, 2023 and 2022

(1) Company history

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

(3) New standards, amendments and interpretations adopted:

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

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

(4) Summary of significant accounting policies

(a) Statement of compliance

(b) Basis of consolidation

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

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

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

(c) Income taxes

(d) Employee benefits

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

(6) Explanation of significant accounts:

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

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

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

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

(e) Investments accounted for using equity method

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

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

(g) Property, plant and equipment

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

(h) Right-of-use assets

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

(i) Investment property

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

(j) Intangible assets

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

(k) Other non-current financial assets

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

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

(m) Short-term borrowings

(i) Borrowing and repayment

(n) Long-term borrowings

(i) Borrowing and repayment

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

(ii) Collateral for bank borrowings

(iii) Borrowing covenants

(o) Bonds payable

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

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

(p) Lease liabilities

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

(ii) Other leases

(q) Provisions

CMP Interim / Quarterly Report 2023