CMP - Interim / Quarterly Report 2021

Stock Code:1532

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

with Independent Auditors’ Review Report For the Three Months Ended March 31, 2021 and 2020

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

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

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Information on major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8～9 9～12 12 12～42 42～49 49 49～51 51 51 52 53～56 56～57 58 59 59

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

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KPMG

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

Independent Auditors’ Review Report

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

Introduction

We have reviewed the accompanying consolidated balance sheets of China Metal Products Co., Ltd. (the “Company”) and its subsidiaries (the “ Group”) as of March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, and the changes in equity and cash flows for the three months ended March 31, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $4,357,397 thousand and $5,300,300 thousand, constituting 9.59% and 12.50% of the consolidated total assets; and the total liabilities amounting to $3,595,855 thousand and $3,433,177 thousand, constituting 12.27% and 12.79% of the consolidated total liabilities as of March 31, 2021 and 2020, respectively, as well as the total comprehensive income (loss) amounting to $(8,996) thousand and $(60,424) thousand, constituting (7.34)% and 30.77% of the consolidated total comprehensive income (loss) for the three months ended March 31, 2021 and 2020, respectively.

Furthermore, as stated in Note 6(f), the other equity accounted investments of the Group in its investee companies of $729,750 thousand and $815,300 thousand as of March 31, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $(22,455) thousand and $(30,894) thousand for the three months ended March 31, 2021 and 2020, 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 March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2021 and 2020 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) May 13, 2021

Notes to Readers

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of March 31, 2021 and 2020

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2021, December 31, 2020, and March 31, 2020 (Expressed in Thousands of New Taiwan Dollars)

March 31, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (Notes 6(a) and (z)) $ 3,696,663 8 1110 Current financial assets at fair value through profit or loss (Notes 6(b) and (z)) - - 1170 Notes and accounts receivable, net (Notes 6(d), (v) and (z)) 3,875,511 8 1180 Accounts receivable due from related parties, net (Notes 6(z) and 7) 3,673 - 1200 Other receivables (Note 6(z)) 72,665 - 1210 Other receivables due from related parties (Notes 6(z) and 7) 49,831 - 130X Inventories (Notes 6(e), 8 and 9(a)) 18,876,337 42 1410 Prepayments (Note 9(a)) 275,144 1 1470 Other current assets 326,366 1 1476 Other current financial assets (Notes 6(z), 8 and 9(a)) 1,479,111 3 1480 Incremental costs of obtaining contracts 298,625 1 Total current assets 28,953,926 64 Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (Notes 6(c) and (z)) 255,364 1 1550 Investments accounted for using equity method (Note 6(f)) 729,750 2 1600 Property, plant and equipment (Notes 6(h), 8 and 9(a)) 10,326,609 23 1755 Right-of-use assets (Note 6(i)) 2,172,054 5 1760 Investment property, net (Notes 6(j) and 8) 708,979 1 1780 Intangible assets (Note 6(k)) 398,785 1 1840 Deferred tax assets 36,984 - 1900 Other non-current assets (Notes 6(h), 7, 8 and 9(a)) 1,163,349 2 1975 Non-current net defined benefit assets 13,479 - 1980 Other non-current financial assets (Notes 6(l), (z), 7 and 9(a)) 683,022 1 Total non-current assets 16,488,375 36 Total assets $ 45,442,301 100	December 31, 2020 Amount % 4,213,805 9 - - 3,818,110 9 979 - 58,957 - 35,408 - 18,216,289 41 245,146 - 284,867 1 1,562,746 4 223,041 - 28,659,348 64 257,587 1 748,266 2 10,164,563 23 2,222,519 5 691,156 1 400,762 1 38,213 - 907,794 2 13,053 - 684,059 1 16,127,972 36 44,787,320 100	March 31, 2020 Amount % 3,895,906 9 47,200 - 3,249,330 8 1,047 - 51,390 - 34,549 - 17,768,676 42 299,787 1 264,415 1 1,014,031 2 180,354 - 26,806,685 63 208,065 - 815,300 2 9,541,452 22 2,365,640 6 638,081 2 409,056 1 33,996 - 886,287 2 8,026 - 680,671 2 15,586,574 37 42,393,259 100 Liabilities and equity Current liabilities: 2100 Short-term borrowings (Notes 6(m) and (z)) 2130 Current contract liabilities (Notes 6(v) and 9(a)) 2170 Notes and accounts payable (Notes 6(z) and 7) 2180 Accounts payable due to related parties (Notes 6(z) and 7) 2200 Other payables (Note 6(z)) 2220 Other payables due to related parties (Notes 6(z) and 7) 2230 Current income tax liabilities 2280 Current lease liabilities (Notes 6(o) and (z)) 2322 Long-term borrowings, current portion (Notes 6(n) and (z)) 2399 Other current liabilities (Notes 6(p) and (r)) Total current liabilities Non-current liabilities: 2540 Long-term borrowings (Notes 6(n) and (z)) 2570 Deferred tax liabilities 2580 Non-current lease liabilities (Notes 6(o) and (z)) 2600 Other non-current liabilities (Notes 6(p), (z) and 7) 2640 Non-current net defined benefit liabilities Total non-current liabilities Total liabilities Equity attributable to owners of parent (Note 6(t)): 3100 Ordinary share 3200 Capital surplus 3300 Retained earnings 3400 Other equity Total equity attributable to owners of parent: 36XX Non-controlling interests Total equity Total liabilities and equity	March 31, 2021		December 31, 2020		March 31, 2020
			Amount %		Amount %		Amount %
			$ 9,294,469 21 2,918,398 7 2,803,880 6 29,883 - 1,585,605 3 198 - 89,849 - 182,350 1 642,098 1 114,050 - 17,660,780 39 8,921,111 20 600,300 1 1,768,969 4 329,387 1 28,555 - 11,648,322 26 29,309,102 65 3,761,221 8 1,487,802 3 6,824,849 15 44,445 - 12,118,317 26 4,014,882 9 16,133,199 35 $ 45,442,301 100		7,990,614 18 2,492,984 6 2,636,629 6 26,663 - 1,441,633 4 11,008 - 81,350 - 184,634 - 100,240 - 89,023 - 15,054,778 34 10,939,362 24 602,386 1 1,812,222 4 336,708 1 39,792 - 13,730,470 30 28,785,248 64 3,761,221 8 1,487,802 4 6,651,340 15 126,031 - 12,026,394 27 3,975,678 9 16,002,072 36 44,787,320 100		9,744,038 23 1,662,666 4 1,920,574 5 28,349 - 688,596 2 9,922 - 100,882 - 189,867 - 2,634,655 6 156,615 - 17,136,164 40 6,774,732 16 621,766 1 1,944,534 5 332,253 1 39,259 - 9,712,544 23 26,848,708 63 3,852,521 9 1,523,104 4 6,512,175 15 (165,899) - 11,721,901 28 3,822,650 9 15,544,551 37 42,393,259 100

See accompanying notes to consolidated financial statements.

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

Reviewed only, not audited in accordance with generally accepted auditing standards

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three Months Ended March 31, 2021 and 2020

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

4000 Operating revenues (Notes 6(v) and 7) 5000 Operating costs (Notes 6(e) and 7) Gross profit from operations Operating expenses (Note 7): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit gains (Note 6(d)) Total operating expenses 6500 Net other income and expenses (Notes 6(x) and 7) Net operating income Non-operating income and expenses: 7100 Interest income (Notes 6(y) and 7) 7010 Other income (Notes 6(y) and 7) 7020 Other gains and losses (Notes 6(g) and (y)) 7050 Finance costs (Note 6(y)) 7375 Share of losses of associates and joint ventures accounted for using equity method (Note 6(f)) Total non-operating income and expenses Profit (loss) from continuing operations before tax 7950 Less: Tax expense (Note 6(s)) 8200 Net profit (loss) 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss: 8316 Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income (Notes 6(t) and (z)) 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 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign financial statements (Note 6(t)) 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 8300 Other comprehensive income (after tax) 8500 Comprehensive income Net profit (loss), attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of parent 8720 Non-controlling interests Earnings/(deficit) per share (expressed in dollars) (Note 6(u)) 9750 Basic earnings/(deficit) per share 9850 Diluted earnings/(deficit) per share	For the Three Months Ended March 31 2021 2020 Amount % Amount % $ 3,609,713 100 2,266,183 100 (2,757,188) (76) (1,833,058) (81) 852,525 24 433,125 19 (156,786) (5) (108,707) (4) (367,545) (10) (318,133) (14) (3,625) - (2,472) - 312 - 7,031 - (527,644) (15) (422,281) (18) - - 1,976 - 324,881 9 12,820 1 17,464 1 11,174 1 22,161 1 4,668 - (10,779) - 26,349 1 (55,494) (2) (78,231) (4) (22,455) (1) (30,894) (1) (49,103) (1) (66,934) (3) 275,778 8 (54,114) (2) (55,162) (2) (11,438) (1) 220,616 6 (65,552) (3) (2,683) - - - - - - - (2,683) - - - (95,293) (3) (130,824) (6) - - - - (95,293) (3) (130,824) (6) (97,976) (3) (130,824) (6) $ 122,640 3 (196,376) (9) 173,509 5 (57,506) (3) 47,107 1 (8,046) - 220,616 6 (65,552) (3) $ 91,923 2 (167,296) (8) 30,717 1 (29,080) (1) $ 122,640 3 (196,376) (9) $ 0.46 (0.15) $ 0.46 (0.15)	For the Three Months Ended March 31 2021 2020 Amount % Amount % $ 3,609,713 100 2,266,183 100 (2,757,188) (76) (1,833,058) (81) 852,525 24 433,125 19 (156,786) (5) (108,707) (4) (367,545) (10) (318,133) (14) (3,625) - (2,472) - 312 - 7,031 - (527,644) (15) (422,281) (18) - - 1,976 - 324,881 9 12,820 1 17,464 1 11,174 1 22,161 1 4,668 - (10,779) - 26,349 1 (55,494) (2) (78,231) (4) (22,455) (1) (30,894) (1) (49,103) (1) (66,934) (3) 275,778 8 (54,114) (2) (55,162) (2) (11,438) (1) 220,616 6 (65,552) (3) (2,683) - - - - - - - (2,683) - - - (95,293) (3) (130,824) (6) - - - - (95,293) (3) (130,824) (6) (97,976) (3) (130,824) (6) $ 122,640 3 (196,376) (9) 173,509 5 (57,506) (3) 47,107 1 (8,046) - 220,616 6 (65,552) (3) $ 91,923 2 (167,296) (8) 30,717 1 (29,080) (1) $ 122,640 3 (196,376) (9) $ 0.46 (0.15) $ 0.46 (0.15)
	2021 Amount % $ 3,609,713 100 (2,757,188) (76) 852,525 24 (156,786) (5) (367,545) (10) (3,625) - 312 - (527,644) (15) - - 324,881 9 17,464 1 22,161 1 (10,779) - (55,494) (2) (22,455) (1) (49,103) (1) 275,778 8 (55,162) (2) 220,616 6 (2,683) - - - (2,683) - (95,293) (3) - - (95,293) (3) (97,976) (3) $ 122,640 3 173,509 5 47,107 1 220,616 6 $ 91,923 2 30,717 1 $ 122,640 3 $ 0.46 $ 0.46
		(0.15)

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the Three Months Ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

		Equity Attributable to Owners	Equity Attributable to Owners	Equity Attributable to Owners	of Parent	of Parent		Non- Controlling Interests Total Equity	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
$ 3,852,521 - - - - $ 3,852,521 $ 3,761,221 - - - - - $ 3,761,221	1,523,104	1,756,147	49,081	4,764,453 (57,506) - (57,506) - 4,706,947 4,794,062 173,509 - 173,509 - - 4,967,571	(143,749) - (109,790) (109,790) - (253,539) 32,198 - (78,930) (78,930) - - (46,732)	87,640	11,889,197	3,852,894 (8,046) (21,034) (29,080) (1,164) 3,822,650 3,975,678 47,107 (16,390) 30,717 9,290 (803) 4,014,882	15,742,091
	- -	- -	- -			- -			(65,552) (130,824)
	-	-	-			-			(196,376)
	-	-	-			-			(1,164)
	1,523,104	1,756,147	49,081			87,640			15,544,551
	1,487,802	1,801,169	56,109			93,833			16,002,072
	- -	- -	- -						220,616 (97,976)
	-	-	-						122,640
	- -	- -	- -						9,290 (803)
	1,487,802	1,801,169	56,109						16,133,199

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit (loss) before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit gains Net losses on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Share of losses of associates and joint ventures accounted for using equity method Losses (gains) on disposal of property, plant and equipment Property, plant and equipment transferred to expenses Losses on disposal of investment 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 capital reduction of financial assets at fair value through other comprehensive income Proceeds from disposal of the subsidiary (net effect of cash) Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in other financial assets Increase in other non-current assets Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term borrowings Decrease in short-term borrowings Increase in short-term notes and bills payable Proceeds from long-term borrowings Repayments of long-term borrowings Payment of lease liabilities Increase in other non-current liabilities Net cash flows (used in) generated from financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase 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 Three Month	s Ended March 31 2020 (54,114) 241,862 5,209 (7,031) 4,240 78,231 (11,174) 30,894 (6,189) - - (21) -
	2021 $ 275,778 254,695 1,228 (312) - 55,494 (17,464) 22,455 223 50 5,013 (8) 5,386 326,760 (94,007) (3,285) 199,021 (566,589) (30,094) (58,440) 83,547 (75,583) (545,430) 181,968 (76,888) 426,035 14,193 (7,004) 538,304 (7,126) 319,634 595,412 14,017 324 (68,848) (46,000) 494,905 (460) - 3,632 (390,772) 187 (737) 882 (385,135) (772,403) 2,977,722 (1,761,898) 90,056 1,045,920 (2,516,991) (49,601) 2,923 (211,869) (27,775) (517,142) 4,213,805 $ 3,696,663
		336,021
		631,148 (8,063) 5,586 (72,253) (33,478) (23,691) 65,701 (24,250)
		540,700
		(637,926) (199,610) 274,130 1,265 -
		(562,141)
		(21,441)
		314,580
		260,466 7,833 - (89,133) (32,467)
		146,699
		- 8,000 - (180,258) 4,433 - (35) (3,266)
		(171,126)
		3,404,251 (1,959,982) 339,754 633,000 (2,144,118) (47,463) 2,810
		228,252
		(8,466) 195,359 3,700,547
		3,895,906

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Three Months Ended March 31, 2021 and 2020

(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 May 13, 2021 .

(3) New standards, amendments and interpretations adopted:

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

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
－
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform Phase 2”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on April 1, 2021, would not have a significant impact on its consolidated financial statements:

●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(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”

(Continued)

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

●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018-2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”
●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”

(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, 2020. For the related information, please refer to Note 4 of the consolidated financial statements for the year ended December 31, 2020.

(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, 2020. For the related information, please refer to Note 4(c) of the consolidated financial statements for the year ended December 31, 2020.

(i) List of subsidiaries in the consolidated financial statements

Investor	Name of Subsidiary	Principal Activity	Percentage Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 83.74 Note 1 % 99.00 % 99.00 % 99.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 94.00 % 94.00 % 94.00 Note 1 (Continued)	Percentage Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 83.74 Note 1 % 99.00 % 99.00 % 99.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 94.00 % 94.00 % 94.00 Note 1 (Continued)
				December 31, 2020
The Company The Company and Sunflower Investment The Company The Company The Company	United Elite Agents Limited (UEA) Atrans Precision Industries Co., Ltd. (Atrans Precision) Sunflower Investment Co., Ltd. (Sunflower Investment) The Hotel National Co., Ltd. (The Hotel National) CHINA METAL AUTOMOTIVE INTERNATIONAL CO., LTD. (CMAI)	Investing Vehicle parts processing Investing International tourist hotel services and other hotel business approved by the Ministry of Transportation and Communications Vehicle parts retailing	% 100.00 % 85.51 % 99.00 % 100.00 % 94.00	% 100.00 % 85.51 % 99.00 % 100.00 % 94.00

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

Investor	Name of Subsidiary	Principal Activity	Percentage Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.72 % 71.72 % 71.72 Note 2 % - % 50.00 % 50.00 Note 1 and 7 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Notes 1 and 4 % 100.00 % 100.00 % - Notes 1 and 5 % 82.55 % 82.55 % 82.55 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Notes 2 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1	Percentage Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.72 % 71.72 % 71.72 Note 2 % - % 50.00 % 50.00 Note 1 and 7 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Notes 1 and 4 % 100.00 % 100.00 % - Notes 1 and 5 % 82.55 % 82.55 % 82.55 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Note 2 % 100.00 % 100.00 % 100.00 Notes 2 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1
				December 31, 2020
The Company The Company The Company and Sunflower Investment The Company and PUJEN Land Development The Company and PUJEN Land Development The Company The Company UEA CMI CMI CMI CMB (H.K.) CMI (BVI) CMP (H.K.) CMP (H.K.) CMW (C.I.) CMW (C.I.) CMJ Atrans Precision	CMJ CO., LTD. (CMJ) (Note 3) National Management Co., Ltd. (National Management) PUJEN Land Development Co., Ltd. (PUJEN Land Development) Pu Sheng Construction Co., Ltd. (Pu Sheng Construction) Shangrila Tourism Co., Ltd. (Shangrila Tourism) InterContinental Taichung Co., Ltd.(InterContinental Taichung) Calligraphy Greenway Plaza Co., Ltd. (Calligraphy Greenway Plaza) China Metal International Holdings Inc. (CMI) China Metal International (BVI) Limited (CMI (BVI)) CMW (Cayman Islands) Co., Ltd. (CMW (C.I.)) CMB (H.K.) Co., Ltd. (CMB (H.K.)) Suzhou CMB Machinery Co., Ltd. (Suzhou CMB) CMP (H.K.) Industry Co., Ltd. (CMP (H.K.)) Tianjin CMT Industry Co., Ltd. (Tianjin CMT) Suzhou CMS Machinery Co., Ltd. (Suzhou CMS) CMW (Tianjin) Industry Co., Ltd. (CMW (Tianjin)) CMI (Wu Han) Precision Machinery Co., Ltd. (CMH) Qingdao Sourcing Specialists Trading Co., Ltd. (Qingdao Sourcing Specialists) FAR HSING (SAMOA) ENTERPRISE	Cast iron product retailing Management and consulting services Residents, commercial buildings and factories leasing and developing Residents, commercial buildings and factories leasing and developing Amusement park and hotel services International tourist hotel services Management and consulting services Investing and cast iron product retailing Investing Investing Investing Cast iron product designing, manufacturing and retailing Investing Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling Vehicle parts, farm wagon parts, industrial wagon parts, household appliances parts and E&M as-casting and molds developing, manufacturing, selling and the after sales services Cast iron product retailing Investing	% 83.33 % 100.00 % 71.72 % - % 100.00 % 100.00 % 100.00 % 82.55 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	% 83.33 % 100.00 % 71.72 % 50.00 % 100.00 % 100.00 % 100.00 % 82.55 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00

CMJ Qingdao Sourcing Specialists Trading Co., Ltd. (Qingdao Sourcing Specialists) Atrans Precision FAR HSING (SAMOA) ENTERPRISE CO., LTD. (FAR HSING (SAMOA))

(Continued)

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

Investor	Name of Subsidiary	Principal Activity	Percentage Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 50.00 % 50.00 % 50.00 Note 1 % 70.00 % 70.00 % 70.00 Note 1 % 50.00 % 50.00 % 50.00 Note 1 % - % - % 100.00 Notes 6 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1	Percentage Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 50.00 % 50.00 % 50.00 Note 1 % 70.00 % 70.00 % 70.00 Note 1 % 50.00 % 50.00 % 50.00 Note 1 % - % - % 100.00 Notes 6 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1
				December 31, 2020
PUJEN Land Development PUJEN Land Development PUJEN Land Development CMAI CMAI CMAI Holding Pilot	CHINGENG Land Development Co., Ltd. (CHINGENG Land Development) PUJEN CHENGMEI Land Development Co., Ltd. (PUJEN CHENGMEI Land Development) PUCHIA Land Development Co., Ltd. (PUCHIA Land Development) Qinxin Trade Co., Ltd. (Qinxin Trade) CMAI Holding, Inc. (CMAI Holding) Pilot Drive LLC (Pilot) CMAI INDUSTRIES INC (CMAI N.A.)	Residents, commercial buildings and factories leasing and developing Residents, commercial buildings and factories leasing and developing Residents, commercial buildings and factories leasing and developing Vehicle parts retailing Investing Assets leasing Vehicle parts retailing	% 50.00 % 70.00 % 50.00 % - % 100.00 % 100.00 % 100.00	% 50.00 % 70.00 % 50.00 % - % 100.00 % 100.00 % 100.00

Note 1: A non-significant subsidiary, its financial statements has not been reviewed.
Note 2: The financial statements have been reviewed. Note 3: The former name was “CHINA METAL JAPAN COMPANY LIMITED”.
Note 4: Set up in the 1[th] quarter of 2020.
Note 5: Set up in the 4[st] quarter of 2020.
Note 6: The cancellation of business registration of Qinxin Trade have been completed on June 22, 2020. The proceeds from the cancellation of shares have remitted on December 31, 2020.
Note 7: The Group has completed the share transaction on March 31, 2021. Please refer to Note 6(g) for more information.

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

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

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

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

(Continued)

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

(d) Employee benefits

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

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

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

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2020.

(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, 2020. Please refer to Note 6 of the 2020 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash on hand Cash in banks Time deposits Cash and cash equivalents	March 31, 2021 $ 6,936 2,260,755 1,428,972 $ 3,696,663	December 31, 2020 6,673 2,680,248 1,526,884 4,213,805	March 31, 2020
			7,969 2,021,930 1,866,007
			3,895,906

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

(b) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss Stocks listed on domestic markets	March 31, 2021 $ -	December 31, 2020 -	March 31, 2020
			47,200

(i) The Group holds financial assets designated as at FVTPL, which recognizes gain or loss on valuation of financial assets. Please refer to Note 6(y) for the recognized gains or losses.

(ii) Please refer to Note 6(z) for the risks of financial instruments.

(Continued)

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

(iii) As of March 31, 2021, December 31 and March 31, 2020, the financial assets were not pledged as collateral.

Equity investments at fair value through other comprehensive income Stocks listed on domestic markets— Yung Tay Enginering Co., Ltd. Stocks unlisted on domestic markets— MEITA Industrial Co., Ltd. Stocks unlisted on domestic markets— YUHUA Venture Capital Co., Ltd. Stocks unlisted on domestic markets— FUHUA Venture Capital Co., Ltd. Stocks unlisted on domestic markets— GUANGYUAN Investment Co., Ltd. Stocks unlisted on domestic markets— DEVELOPMENT Venture Capital Co., Ltd. Total	March 31, 2021 $ 60,540 135,300 435 1,574 31,580 25,935 $ 255,364	December 31, 2020 62,763 135,300 435 1,574 31,580 25,935 257,587	March 31, 2020
			- 135,300 830 1,920 44,080 25,935
			208,065

(i) The Group holds the equity investments for long-term strategic purposes, rather than transaction purposes. Therefore, the investments are measured at FVOCI.

(ii) The Group did not dispose the strategic investments during the first quarter of 2021 and 2020. Therefore, the accumulated income and loss was not transferred in equity.
(iii) Please refer to Note 6(z) for the information on credit risk (including the impairment of debt instrument investments) and market risk.
(iv) As of March 31, 2021, December 31 and March 31, 2020, the financial assets were not pledged as collateral.

(Continued)

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

(d) Notes and accounts receivable

Notes receivable from operating activities Accounts receivable measured as amortized cost Subtotal Less: Loss allowance Total	March 31, 2021 $ 434,563 3,443,754 3,878,317 2,806 $ 3,875,511	December 31, 2020 455,795 3,365,435 3,821,230 3,120 3,818,110	March 31, 2020
			419,036 2,849,095
			3,268,131 18,801
			3,249,330

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:

	March 31, 2021
Gross Carrying Amount $ 3,713,687 136,931 20,647 5,611 588 853 $ 3,878,317	Weighted Average Loss Rate 0% 0% 0%~6% 0%~10.54% 25.08%~32.97% 100%	Loss Allowance Provision
		- - 1,204 561 188 853
		2,806

December 31, 2020	December 31, 2020
Gross Carrying Amount $ 3,675,883 87,468 55,840 490 431 1,118 $ 3,821,230	Weighted Average Loss Rate 0% 0% 0%~3.3% 0%~10.54% 25.08%~32.97% 100%	Loss Allowance Provision
		- - 1,824 49 129 1,118
		3,120

(Continued)

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

	March 31, 2020
Gross Carrying Amount $ 3,030,139 152,095 40,182 7,604 31,111 7,000 $ 3,268,131	Weighted Average Loss Rate 0% 0% 0% 0%~8.87% 17.13%~52.79% 100%	Loss Allowance Provision
		- - - 597 11,204 7,000
		18,801

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

Balance on January 1 Impairment recovery recognized Foreign exchange losses Balance on March 31	For the Three Months Ended March 31 2021 2020 $ 3,120 26,005 (312) (7,031) (2) (173) $ 2,806 18,801
	2021 $ 3,120 (312) (2) $ 2,806

The financial assets mentioned above were not pledged as collateral.

(e) 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	March 31, 2021 $ 141,602 270,006 125,725 938,906 56,681 6,082,711 2,035,000 8,738,443 166,995 320,268 $ 18,876,337	December 31, 2020 122,981 211,745 103,020 884,993 59,948 5,998,833 2,234,588 8,116,786 166,995 316,400 18,216,289	March 31, 2020
			133,141 250,443 156,524 656,077 66,672 6,062,494 3,798,608 6,172,280 123,269 349,168
			17,768,676

(Continued)

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

For the three months ended March 31, 2021 and 2020, the cost of goods sold amounted to $2,757,188 thousand and $1,833,058 thousand, respectively. For the three months ended March 31, 2021 and 2020, the reversal gain (loss for inventory obsolescence) from the increase (decrease) in inventories' net realizable value amounted to $1,865 thousand and $(15,953) thousand, respectively.

For the information on inventories pledged as collateral, as of March 31, 2021, December 31 and March 31, 2020, please refer to Note 8.

(f) Investments accounted for using equity method

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

follows:
Associates Joint ventures	March 31, 2021 $ 451,958 277,792 $ 729,750	December 31, 2020 452,283 295,983 748,266	March 31, 2020
			460,738 354,562
			815,300

(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 ended March 31, 2021 and 2020, the unrealized investment losses amounted to $71 thousand and $67 thousand; the accumulated unrealized investment losses, as of March 31, 2021 and 2020, amounted to $57,479 thousand and $57,114 thousand, respectively.

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

Carrying amount of individually insignificant associates' equity Attributable to the Group: Net loss Other comprehensive income Comprehensive income	March 31, 2021 $ 451,958	December 31, 2020 March 31, 2020 452,283 460,738 For the Three Months Ended March 31 2021 2020 $ (4,265) (4,643) - - $ (4,265) (4,643)
		2021 $ (4,265) - $ (4,265)

(Continued)

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

(ii) Joint ventures

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

Carrying amount of individually insignificant joint ventures' equity Attributable to the Group: Net loss Other comprehensive income Comprehensive income	March 31, 2021
	$ 277,792

(iii) Pledge to secure

As of March 31, 2021, December 31 and March 31, 2020, 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.

(g) Loss of control over a subsidiary

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

(Continued)

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

(h) Property, plant and equipment

The cost and accumulated depreciation of the property, plant equipment of the Group for the three months ended March 31, 2021 and 2020 are as follows:

Buildings	Prepayments for Equipment and Construction in Progress	Total 18,231,631 390,772 (75,298) 28,304 (116,456)
3,445,580 - (1,756) 676 (21,082) 3,423,418 3,361,551 676 - - (25,293) 3,336,934 1,448,672 25,484 (1,756) - (8,186) 1,464,214 1,327,569 25,937 - (9,242) 1,344,264 1,996,908 1,959,204 2,033,982 1,992,670	1,202,077 334,480 - 11,496 (13,473) 1,534,580 543,517 164,892 - (14,985) (7,014) 686,410 - - - - - - - - - - - 1,202,077 1,534,580 543,517 686,410
		18,458,953
		17,417,169 180,258 (98,258) 15,898 (130,723)
		17,384,344
		8,067,068 201,923 (74,888) - (61,759)
		8,132,344
		7,827,210 187,357 (100,014) (71,661)
		7,842,892
		10,164,563
		10,326,609
		9,589,959
		9,541,452

(i) As of March 31, 2021, December 31 and March 31, 2020, 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

(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. The information regarding the land mentioned above, which is presented in the line item of other non-current assets, is as follows:

Land	March 31, 2021 $ 44,299	December 31, 2020 44,299	March 31, 2020
			44,299

(i) Right-of-use assets

The cost and accumulated depreciation of the right-of-use assets, which includes land, buildings, mechinery and transportation equipment rented by the Group, for the three months ended March 31, 2021 and 2020 are as follows:

Cost: Balance on January 1, 2021 Additions Reduction for expiration Influence from exchange rates Balance on March 31, 2021 Balance on January 1, 2020 Additions Reduction for expiration Influence from exchange rates Balance on March 31, 2020 Accumulated depreciation and impairment loss: Balance at January 1, 2021 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on March 31, 2021 Balance on January 1, 2020 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on March 31, 2020	Land $ 1,007,888 - - (3,116) $ 1,004,772 $ 1,002,435 - - (3,895) $ 998,540 $ 155,174 5,885 - - (786) $ 160,273 $ 130,437 5,857 - - (904) $ 135,390	Buildings 2,394,673 1,092 (1,091) - 2,394,674 2,397,748 237 (1,696) - 2,396,289 1,158,342 40,196 183 (1,091) - 1,197,630 999,972 40,392 217 (1,402) - 1,039,179	Machinery 48,195 - - (359) 47,836 54,032 - - (546) 53,486 29,119 3,531 - - (255) 32,395 24,730 3,805 - - (296) 28,239	Transportation Equipment 17,318 2,645 (1,863) 1 18,101 25,475 - (1,784) 6 23,697 12,171 1,396 - (1,863) 1 11,705 15,221 1,945 - (1,785) 4 15,385	Office Equipment 2,228 723 (866) 1 2,086 2,240 - - 5 2,245 1,122 109 - (562) 1 670 1,022 133 - - 2 1,157	Other Equipment 122,262 - - - 122,262 122,607 196 (604) - 122,199 14,117 887 - - - 15,004 10,997 881 - (412) - 11,466	Total 3,592,564 4,460 (3,820) (3,473) 3,589,731 3,604,537 433 (4,084) (4,430) 3,596,456 1,370,045 52,004 183 (3,516) (1,039) 1,417,677 1,182,379 53,013 217 (3,599) (1,194) 1,230,816

(Continued)

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

Carrying value: Balance on January 1, 2021 Balance on March 31, 2021 Balance on January 1, 2020 Balance on March 31, 2020	Land $ 852,714 $ 844,499 $ 871,998 $ 863,150	Buildings 1,236,331 1,197,044 1,397,776 1,357,110	Machinery 19,076 15,441 29,302 25,247	Transportation Equipment 5,147 6,396 10,254 8,312	Office Equipment 1,106	Other Equipment 108,145 107,258 111,610 110,733	Total 2,222,519
					1,416		2,172,054
					1,218		2,422,158
					1,088		2,365,640

(j) Investment property

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

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

The movements in the investment property is as follows:

The movements in the investment property	is as follows:
Carrying value: Balance on January 1, 2021 Balance on March 31, 2021 Balance on January 1, 2020 Balance on March 31, 2020	Owned Property Land Buildings $ 593,697 97,459 $ 609,567 99,412 $ 545,783 93,790 $ 545,783 92,298	Total
	Land $ 593,697 $ 609,567 $ 545,783 $ 545,783
		691,156
		708,979
		639,573
		638,081

Investment properties comprise a number of commercial properties that are leased to third parties. Each leasing contract 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(q) for the regarding information.

There were no significant additions, disposal, or recognition and reversal of impairment losses of investment property for the three months ended March 31, 2021 and 2020. Information on depreciation for the period is discussed in Note 12(c), and for the information on rental revenue and other direct operating expense, please refer to Note 6(q).

The fair value of the investment property was not significantly different from those disclosed in the Note 6(j) of the annual consolidated financial statements for the year ended December 31, 2020.

As of March 31, 2021, December 31 and March 31, 2020, 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

(k) Intangible assets

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

Cost: Balance on January 1, 2021 Acquisitions Reclassification Influence from exchange rates Balance on March 31, 2021 Balance on January 1, 2020 Influence from exchange rates Balance on March 31, 2020 Accumulated amortization and impairment loss: Balance on January 1, 2021 Amortization Influence from exchange rates Balance on March 31, 2021 Balance on January 1, 2020 Amortization Influence from exchange rates Balance on March 31, 2020 Carrying value: Balance on January 1, 2021 Balance on March 31, 2021 Balance on January 1, 2020 Balance on March 31, 2020	Goodwill $ 390,862 - - (1,870) $ 388,992 $ 393,630 (1,580) $ 392,050 $ - - - $ - $ - - - $ - $ 390,862 $ 388,992 $ 393,630 $ 392,050	Patent 63,669 - - (581) 63,088 62,652 (727) 61,925 63,669 - (581) 63,088 62,652 - (727) 61,925 - - - -	Client Relationship 229,850 - - (2,099) 227,751 226,177 (2,624) 223,553 229,850 - (2,099) 227,751 218,384 3,896 (2,578) 219,702 - - 7,793 3,851	Computer Software 32,878 737 383 7 34,005 32,427 27 32,454 22,978 1,228 6 24,212 17,960 1,313 26 19,299 9,900 9,793 14,467 13,155	Total 717,259 737 383 (4,543) 713,836 714,886 (4,904) 709,982 316,497 1,228 (2,674) 315,051 298,996 5,209 (3,279) 300,926 400,762 398,785 415,890 409,056

(Continued)

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

(l) Other non-current financial assets

Debt obligation receivable－The Splendor Hospitality International Co., Ltd. Debt obligation receivable－Chin Ling Steel Co., Ltd.－Non-guaranteed Less: Accumulated impairment－Debt obligation receivable－Chin Ling Steel Co., Ltd. Refundable deposits	March 31, 2021 $ 575,000 23,250 (23,250) 108,022 $ 683,022	December 31, 2020 575,000 23,250 (23,250) 109,059 684,059	March 31, 2020 575,000 23,250 (23,250) 105,671 680,671

(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:

March 31, 2021

				March 31, 2021
Underlying	Obligation Cost		Obligation Principal	Valuation Assessment Collateral According to the assessment of Jones Lang Lasalle Real Estate Appraiser, the valuation of mortgage is $7,056,000 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $1,548,000 thousand. The building of The Splendor Hospitality International (the 2nd security)
The Splendor Hospitality International	$ 575,000		796,845

(Continued)

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

Underlying				December 31, 2020
	Obligation Cost		Obligation Principal	Valuation Assessment Collateral According to the assessment of Jones Lang Lasalle Real Estate Appraiser, the valuation of mortgage is $7,056,000 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $1,548,000 thousand. The building of The Splendor Hospitality International (the 2nd security) March 31, 2020
The Splendor Hospitality International Underlying	$ 575,000		796,845
		Obligation Cost	Obligation Principal	Valuation Assessment Collateral According to the assessment of Zhonglian Real Estate Appraiser Joint Office, the valuation of mortgage is $7,579,711 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $1,809,856 thousand. The building of The Splendor Hospitality International (the 2nd security)
The Splendor Hospitality International	$ 575,000		796,845

(ii) As of March 31, 2021, December 31 and March 31, 2020, the cost and principal of debt obligation from Chin Ling Steel were $23,250 thousand and $118,561 thousand, respectively.
(m) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Notes and bills payable Total Unused credit limit Range of interest rates	March 31, 2021 $ 2,577,472 6,177,375 539,622 $ 9,294,469 $ 4,391,224 0.72%~2.25%	December 31, 2020 1,820,974 5,720,074 449,566 7,990,614 6,543,281 0.52%~2.25%	March 31, 2020
			2,887,940 6,286,625 569,473
			9,744,038
			5,641,523
			0.71%~2.83%

(i) Borrowing and repayment

For the three months ended March 31, 2021 and 2020, the Group obtained from short-term borrowings amounting to $2,977,722 thousand and $3,404,251 thousand with an interest rate of 0.72%～2.17% and 0.71%～2.25%; the repayment amounting to $1,761,898 thousand and $1,959,982 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.

(Continued)

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

(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	March 31, 2021 $ 2,382,874 7,180,953 (642,098) (618) $ 8,921,111 $ 789,963 0.40%~3.70%	December 31, 2020 2,889,763 8,150,663 (100,240) (824) 10,939,362 341,821 0.63%~3.70%	March 31, 2020 2,042,373 7,367,973 (2,634,655) (959) 6,774,732 1,297,038 1.00%~4.21%

(i) Borrowing and repayment

For the three months ended March 31, 2021 and 2020, the Group obtained from long-term borrowings amounting to $1,045,920 thousand and $633,000 thousand with an interest rate of 0.40%～ 1.90% and 1.00%～ 2.00%; the repayment amounting to $2,516,991 thousand and $2,144,118 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.

(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 debt ratio shall be less than or equal to 200%, 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 December 31, 2020, 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 2020 and 2019 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, 2020, the Group was in compliance with the above borrowing covenants.

(Continued)

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

(o) Lease liabilities

The details of the lease liabilities is as follows:

Current Non-current	March 31, 2021 $ 182,350 $ 1,768,969	December 31, 2020 184,634 1,812,222	March 31, 2020
			189,867
			1,944,534

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

The amounts recognized in profit or loss are as follows:

Interest on lease liabilities Expenses relating to leases short-term assets Covid-19-related rent concessions (recognized as deduction of rent expenses)	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ 4,905 $ 4,118 $ 5	2020
		7,049
		4,423
		-

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

Total cash outflow for leases	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ 58,624	2020
		58,935

(i) Real estate leases

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

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

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

(Continued)

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

(ii) Other leases

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

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

(p) Provisions

Current: Warranties Legal Subtotal Non-current: Financial guarantee contracts Legal Subtotal Total	March 31, 2021 $ - - - 29,822 236,052 265,874 $ 265,874	December 31, 2020 186 - 186 33,269 236,052 269,321 269,507	March 31, 2020
			242 42,600
			42,842
			41,415 236,052
			277,467
			320,309

(i) Warranties

The Group’ s warranties are mainly related to the sales of construction projects. They are estimated based on the historical data and expected to occur after 3 to 5 years of selling the construction projects.

(ii) 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.

(iii) Legal

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

(q) Operating leases

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

(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 Three to four years Total undiscounted lease payments	March 31, 2021 $ 16,558 9,861 4,051 - $ 30,470		December 31, 2020 17,020 12,355 5,265 355 34,995	March 31, 2020
				7,086 - - -
				7,086

For the three months ended March 31, 2021 and 2020, rental revenues from investment properties amounted to $3,372 thousand and $2,982 thousand, respectively. The equipment and maintenance costs arising from the investment properties (recognized under "operating costs") are as follows:

Lease-out property (r) Employee benefits	For the Three Months Ended March 31 2021 2020 $ - 2	For the Three Months Ended March 31 2021 2020 $ - 2
		2020 2

(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, 2020 and 2019.

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

Operating cost Selling expenses Administration expenses Research and development expenses Total	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ 536 101 238 98 $ 973	2020
		593 100 277 87
		1,057

(Continued)

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

(ii) Defined contribution plans

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

Operating cost Selling expenses Administration expenses Research and development expenses Total (iii) Short-term employee benefits Paid leave and other liabilities	March 31, 2021 $ 13,431	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 10,687 645 7,495 87 $ 18,914 December 31, 2020 17,034	2020
			8,055 512 5,258 83
			13,908
			March 31, 2020
			15,673

(s) Income tax

(i) Applicated legal tax rates of foreign subsidiaries: China: 15%~25%; Japan: 29.05%~33.58%; the USA: 21%.

(ii) The income tax expense are as follows:

Current income tax expense Current period incurred Land value increment taxes Adjustment for prior periods Income tax expense	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ 46,355 8,842 (35) $ 55,162	2020
		11,438 - -
		11,438

(iii) Under income tax return filing of the Group, the income tax returns of the Company had been assessed and approved by the Tax Authority through 2017, other domestic consolidated subsidiaries had been assessed and approved through 2019. The Company and Sunflower Investment did not agree on the proposed tax adjustments from the Tax Authority, and filed the petition of administration. Please refer to Note 9(b) for the details of the petition.

(Continued)

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

(t) Share capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the three months ended March 31, 2021 and 2020. For the related information, please refer to Note 6(t) of the consolidated financial statements for the year ended December 31, 2020.

(i) Capital stock

As of March 31, 2021, December 31 and March 31, 2020, the Company’s authorized share capital are 5,000,000 thousands, with par value of $10 per share and the issued capital are $3,761,221 thousand, $3,761,221 thousand and $3,852,521 thousands, respectively. All the proceeds from the issued capital have been remitted.

(ii) Capital surplus

The components of the capital surplus are as follows:

March 31, 2021 From issuance of share capital $ 611,272 Employee stock option of subsidiaries 33,352 From conversion of convertible bonds 843,035 Changes in equity of associates and joint ventures accounted for using equity method 143 $ 1,487,802	December 31, 2020 611,272 33,352 843,035 143 1,487,802	March 31, 2020
		626,110 33,352 863,499 143
		1,523,104

(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.

(Continued)

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

1) Earnings distribution

The appropriations of the Company’ s 2020 and 2019 earnings were based on the resolutions decided during the meetings of the Board of Directors held on March 30, 2021 and May 12, 2020, respectively.

These earnings are appropriated as follows:

Common stock dividends per share Cash	2020 Allotment (NTD) Amount $ 1.03 387,406	2019	2019
	Allotment (NTD) $ 1.03	Allotment (NTD) 0.92	Amount
			346,727

(iv) Other equity (net of tax)

Balance on January 1, 2021 Profit attributable to non-controlling interests Exchange differences on foreign operations Unrealized loss on financial assets Changes in non-controlling interest Cash dividends paid to non-controlling interests Balance on March 31, 2021 Balance on January 1, 2020 Loss attributable to non-controlling interests Exchange differences on foreign operations Cash dividends paid to non-controlling interests Balance on March 31, 2020	Exchange Differences on Translation of Foreign Financial Statements $ 32,198 - (78,930) - - - $ (46,732) $ (143,749) - (109,790) - $ (253,539)	Unrealized Gains (Losses) from Financial Assets Measured at FVOCI 93,833 - - (2,656) - - 91,177 87,640 - - - 87,640	Non-controlling Interest 3,975,678 47,107 (16,363) (27) 9,290 (803) 4,014,882 3,852,894 (8,046) (21,034) (1,164) 3,822,650	Total 4,101,709 47,107 (95,293 (2,683 9,290 (803
				4,059,327
				3,796,785 (8,046 (130,824 (1,164
				3,656,751

(u) Earnings/(deficits) per share

The Group’s earnings/(deficits) per share are calculated as follows:

Basic earnings/ (deficits) per share Profit (loss) attributable to owners of the parent Weighted average number of ordinary shares Basic earnings/ (deficits) per share Diluted earnings/ (deficits)per share Profit (loss) attributable to owners of the parent (after the adjustment of diluted ordinary shares)	For the Three Months Ended March 31 2021 2020 $ 173,509 (57,506) $ 376,122 385,252 $ 0.46 (0.15) $ 173,509 (57,506) (Continued)
	2021 $ 173,509 $ 376,122 $ 0.46 $ 173,509

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

		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021	2020
Weighted average number of ordinary shares		376,122	385,252
Effect of potential diluted ordinary shares
Employee stock option		679	-
Weighted average number of ordinary shares (after the adjustment of diluted
ordinary shares)		376,801	385,252
Diluted earnings/ (deficits) per share	$	0.46	(0.15)

(v) Revenue from contracts with customers

(i) Disaggregation of revenue

For the Three Months Ended March 31, 2021	For the Three Months Ended March 31, 2021	For the Three Months Ended March 31, 2021	For the Three Months Ended March 31, 2021
Metal Manufacturing Segment $ 393,140 214,789 405,526 1,661,153 93,868 190,057 102,261 $ 3,060,794 $ 3,045,188 - - 15,606 $ 3,060,794	Real Estate Development Segment	Lifestyle Hospitality Segment 167,809 - - - - - - 167,809 - - 93,051 74,758 167,809	Total
	381,110 - - - - - -		942,059 214,789 405,526 1,661,153 93,868 190,057 102,261
	381,110		3,609,713
	- 381,110 - -		3,045,188 381,110 93,051 90,364
	381,110		3,609,713

(Continued)

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

			For the Three Months Ended March 31,	For the Three Months Ended March 31,	For the Three Months Ended March 31,	For the Three Months Ended March 31,	For the Three Months Ended March 31,	For the Three Months Ended March 31,	For the Three Months Ended March 31,	For the Three Months Ended March 31,	2020
			Metal		Real Estate			Lifestyle
		Manufacturing		Development				Hospitality
		Segment			Segment			Segment			Total
Major geographic markets:
	Taiwan	$	107,408				3,463		147,894		258,765
	United States		506,698			-			-		506,698
	Japan		349,317			-			-		349,317
	China		986,053			-			-		986,053
	Europe		63,468			-			-		63,468
	South America		6,871			-			-		6,871
	Others		95,011			-			-		95,011
		$	2,114,826				3,463		147,894		2,266,183
Major product/service lines:
	Iron casting hardware	$	2,105,161			-			-		2,105,161
	Construction		-			-			-		-
	Counter commissions		-			-			83,580		83,580
	Others		9,665				3,463		64,314		77,442
		$	2,114,826				3,463		147,894		2,266,183
)	Contract balances
			March		31,		December 31,			March 31,
			2021					2020			2020
	Notes and accounts receivable		$ 3,878,317					3,821,230			3,268,131
	Less: Loss allowance				(2,806)			(3,120)			(18,801)
	Total		$ 3,875,511					3,818,110			3,249,330
	Contract assets		$	-				-			-
	Contract liabilities–Advance real		$ 2,863,776					2,443,869			1,608,723
	estate receipts
	Contract liabilities–Advance receipts		$		54,622			49,115			53,943

(ii) Contract balances

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

The amount of revenue recognized for the three months ended March 31, 2021 and 2020, that were included in the contract liabilities balance at the beginning of the period were $61,734 and $0 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.

(w) 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 ended March 31, 2021, appropriated employees’ compensation and remuneration of directors by $5,384 thousand and $4,807 thousand, respectively. There were no appropriation for remuneration to employees and directors for the three months ended March 31, 2020 due to the operation losses incurred by the Company during the period. Employees’ compensation and the remuneration of directors 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.

There were no significant difference between employees' compensation and remuneration of directors approved by the Board of Directors meeting and the estimated amount for the years of 2020 and 2019.

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.

(x) Net other income and expenses

The information on net other income and expenses is listed as follows:

Rental revenue	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ -	2020 1,976

(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:

Interest income from bank deposits Interest income from financial guarantee contracts Total Interest income	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ 14,017 3,447 $ 17,464	2020
		7,833 3,341
		11,174

(ii) Other income

The information on other income is listed as follows:

Rental revenue Others Total other income	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ 5,287 16,874 $ 22,161	2020
		3,765 903
		4,668

(iii) Other gains and losses

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

(Losses) gains on disposal of property, plant and equipment Foreign exchange (losses) gains Losses on financial assets at FVTPL Losses on disposal of investment Other losses Net amount of other gains and losses	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ (223) (5,096) - (5,013) (447) $ (10,779)	2020
		6,189 24,814 (4,240 - (414
		26,349

(iv) Finance costs

The information on interest costs is listed as follows:

Bank borrowing interest expense Lease liability interest expense Other finance costs Net amount of finance costs	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ 50,164 4,905 425 $ 55,494	2020
		70,740 7,049 442
		78,231

(Continued)

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

For the three months ended March 31, 2021 and 2020, the capitalized interest costs amounted to $14,252 thousand and $10,024 thousand, respectively.

(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(z) of the consolidated financial statements for the year ended December 31, 2020.

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial 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(d). 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 three months ended March 31, 2021 and 2020, please refer to Note 6(d).

(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 March 31, 2021 Non-derivative financial liabilities Bank borrowings $ 18,953,088 Lease liabilities 2,195,491 Notes and accounts payables (including related parties) 2,833,763 Other payables (including related parties) 1,585,803 $ 25,568,145	Within 6 Months 3,967,571 105,927 2,833,763 1,585,803 8,493,064	6-12 Months 2,405,928 100,096 - - 2,506,024	1-2 Years 7,949,056 195,249 - - 8,144,305	2-5 Years 4,601,131 596,555 - - 5,197,686	Over 5 Years
					29,402 1,197,664 - -
					1,227,066

(Continued)

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

Contractual Cash Flow December 31, 2020 Non-derivative financial liabilities Bank borrowings $ 19,559,149 Lease liabilities 2,247,285 Notes and accounts payables (including related parties) 2,663,292 Other payables (including related parties) 1,452,641 $ 25,922,367 March 31, 2020 Non-derivative financial liabilities Bank borrowings $ 19,602,134 Lease liabilities 2,404,574 Notes and accounts payables (including related parties) 1,948,923 Other payables (including related parties) 698,518 $ 24,654,149	Within 6 Months 2,626,081 107,124 2,663,292 1,452,641 6,849,138 5,593,839 109,002 1,948,923 698,518 8,350,282	6-12 Months 1,895,083 101,805 - - 1,996,888 3,396,872 107,214 - - 3,504,086	1-2 Years 8,906,212 195,978 - - 9,102,190 5,404,077 204,514 - - 5,608,591	2-5 Years 6,101,100 594,921 - - 6,696,021 5,159,385 587,009 - - 5,746,394	Over 5 Years
					30,673 1,247,457 - -
					1,278,130
					47,961 1,396,835 - -
					1,444,796

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

(iii) Currency risk

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

March 31, 2021 Foreign Currency Exchange Rate NTD Financial assets Monetary items USD:NTD $ 16,726 28.54 477,369 USD:CNY 121,419 6.58 3,465,291 USD:JPY 1,158 110.75 33,041 EUR:NTD 1,160 33.48 38,837 EUR:CNY 1,057 7.71 35,378 JPY:NTD 83,793 0.26 21,594 JPY:CNY 123,838 0.06 31,913 HKD:USD 4,994 0.13 18,328 Financial liabilities Monetary items USD:NTD 29 28.54 826 USD:CNY 127,768 6.58 3,646,485 EUR:CNY 13,770 7.71 461,004 HKD:USD 335,040 0.13 1,229,597	December 31, 2020 Foreign Currency Exchange Rate NTD 21,890 28.48 623,430 116,751 6.50 3,325,082 1,063 103.08 30,277 408 35.02 14,287 845 8.00 29,602 54,520 0.28 15,064 50,832 0.06 14,045 6,370 0.13 23,376 63 28.48 1,781 138,325 6.50 3,939,509 1,655 8.00 57,947 335,088 0.13 1,229,771	March 31, 2020	March 31, 2020
	Foreign Currency 21,890 116,751 1,063 408 845 54,520 50,832 6,370 63 138,325 1,655 335,088	Foreign Currency 19,748 114,352 708 874 1,068 62,848 62,329 6,196 1,023 104,705 15,859 390,880	Exchange Rate NTD 30.23 596,994 7.10 3,456,857 108.43 21,403 33.24 29,041 7.80 35,512 0.28 17,522 0.07 17,377 0.13 24,166 30.23 30,940 7.10 3,165,233 7.80 527,154 0.13 1,524,432

(Continued)

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

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 March 31, 2021 and 2020 would have increased (decreased) the after-tax net income for the three months ended March 31, 2021 and 2020 by $2,432 thousand and $2,098 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 ended March 31, 2021 and 2020, the foreign exchange (losses) gains, including both realized and unrealized, amounted to $(5,096) thousand and $24,814 thousand, respectively.

(iv) Interest rate analysis

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.

If the interest rate increases or decreases by 1% the Group’s net income will increase /decrease by $21,758 thousand and $30,091 thousand for the three months ended March 31, 2021 and 2020, 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 Three Months Ended March 31 2021 2020 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 25,536 - 20,807 4,720 $ (25,536) - (20,807) (4,720)	For the Three Months Ended March 31 2021 2020 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 25,536 - 20,807 4,720 $ (25,536) - (20,807) (4,720)
	2021 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 25,536 - $ (25,536) -
	Other Comprehensive Income (net of tax) $ 25,536 $ (25,536)	Other Comprehensive Income (net of tax) 20,807 (20,807)

(Continued)

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

(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:

	March 31, 2021	March 31, 2021	March 31, 2021
Book Value $ 255,364 $ 9,859,168 $ 25,248,440		Fair Value
	Level 1 Level 2 Level 3 60,540 - 194,824 - - - - - - December 31, 2020			Total
				255,364
				-
				-

Book Value $ 257,587 $ 10,372,793 $ 25,159,952		Fair Value
	Level 1 Level 2 62,763 - - - - - March 31, 2020		Level 3 194,824 - -	Total
				257,587
				-
				-

Book Value $ 47,200 $ 208,065 $ 8,924,175 $ 23,952,010		Fair Value
	Level 1 47,200 - - -	Level 2 - - - -	Level 3 - 208,065 - -	Total
				47,200
				208,065
				-
				-

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.

(Continued)

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

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

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

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

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

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 three months ended March 31, 2021 and 2020.

4) Reconciliation of Level 3 instruments

Reconciliation of Level 3 instruments
		Non-current Financial
		Assets at FVOCI
		Equity Instrument
		without Quoted Price
Balance on January 1, 2021	$	257,587
Purchase		460
Total gains or losses
Recognized as other comprehensive income		(2,683)
Balance on March 31, 2021	$	255,364

(Continued)

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

		Non-current Financial
		Assets at FVOCI
		Equity Instrument
		without Quoted Price
Balance on January 1, 2020	$	216,065
Capital reduction		(8,000)
Balance on March 31, 2020	$	208,065

The total gains or losses is listed under “ unrealized gain (loss) on financial assets at FVOCI”. The information regarding assets held as of March 31, 2021 and 2020 is as follows:

Total gains or losses Recognized as other comprehensive income (which is listed under "unrealized loss on financial assets of FVOCI")	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 $ (2,683)	2020
		-

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 March 31, 2021,December 31 and March 31, 2020 were $18~29,388 thousand, $18~29,388 thousand, and $0~30,176 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 March 31, 2021,December 31 and March 31, 2020, were 4.61%,4.70% and 4.95%, respectively.) ‧Discounting rate without market liquidity (As of March 31, 2021,December 31 and March 31, 2020, were all 15%) ‧The estimated fair value would decrease, if the weighted average capital cost is increased. ‧The estimated fair value would decrease, if the discounting rate without market liquidity is increased.

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:

March 31, 2021 Financial assets at FVOCI Equity investments without an active market December 31, 2020 Financial assets at FVOCI Equity investments without an active market March 31, 2020 Financial assets at FVOCI Equity investments without an active market	Inputs % 4.61 % 4.70 % 4.95	Fluctuation in Inputs 1% 1% 1%	Other Comprehensive Income Favorable Unfavorable 6,931 (6,586) 6,755 (6,421) 7,043 (6,695)

(Continued)

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

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(aa) of the consolidated financial statements for the year ended December 31, 2020.

(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, 2020 . Also, management believes that there were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2020. Please refer to Note6 (ab) of the consolidated financial statements for the year ended December 31, 2020 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 three months ended March 31, 2021 and 2020, were as follows:

Reconciliation of liabilities arising from financing activities were as follows:

Other non-current assets Other non-current assets	January 1, 2021 $ 907,794 January 1, 2020 $ 905,188	Cash flows 385,135 Cash flows 3,266	Non-cash changes Reclassification (129,580) Non-cash changes Reclassification (22,167)	March 31, 2021
				1,163,349
				March 31, 2020
				886,287

(7) Related-party transactions:

(a) The ultimate parent company

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

(Continued)

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

(b) Names and relationship with related parties

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

Name of Related Party

The Splendor Hospitality International Co., Ltd. (The Splendor Hospitality) CMAAN Health Co., Ltd. (CMAAN Health) Hua-Pu Development Co., Ltd. (Hua-Pu Development) Amida Trustlink Assets Management Co., Ltd. (Amida Trustlink Assets) Keng-Hsin Urban Renewal Co., Ltd. (Keng-Hsin Urban Renewal) 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) Pu Yuan Construction Co., Ltd. (Pu Yuan Construction) LEESCO Development Co., Ltd. (LEESCO Development) Hao Bao Investment Co., Ltd. (Hao Bao Investment) Rui Hua Investment Co., Ltd. (Rui Hua Investment) Gee Lien Resource Development Corp. (Gee Lien Resource) Yi-Shi Investment Corporation (Yi-Shi) Mr. Ming Shiann, Ho Mr. Ting Fung, Lin

Relationship with the Group Joint ventures Joint ventures Joint ventures Associates

Associate of subsidiaries 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 Key Management

(Continued)

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

(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	Notes and Accounts Receivables March 31, 2021 December 31, 2020 March 31, 2020 3,434 797 1,036 227 - - 12 182 11 3,673 979 1,047	Notes and Accounts Receivables March 31, 2021 December 31, 2020 March 31, 2020 3,434 797 1,036 227 - - 12 182 11 3,673 979 1,047
For the Three Months Ended March 31		December 31, 2020 797 - 182 979	March 31, 2020 1,036 - 11 1,047
2021	2020 1,147 - 35 1,182
$ 3,713 342 86 $ 4,141

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

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

Revenue recognized	Revenue recognized	Advance real estate receipts March 31, 2021 December 31, 2020 March 31, 2020 30,070 9,300 -	Advance real estate receipts March 31, 2021 December 31, 2020 March 31, 2020 30,070 9,300 -
For the Three Months Ended March 31		December 31, 2020 9,300	March 31, 2020 -
2021	2020 -
$ -

The total contract price of real estate in contract with related parties mentioned above is $196,870 thousand (tax included). Besides, the total contract price of $56,320 thousand (tax included), which the Board of Directors has already passed the resolution but has not yet sign up, the Group has received $150 thousand and has recognized it under other current liabilities. 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 For the Three Months Ended March 31 2021 2020 $ 32,381 14,682 - 1,663 $ 32,381 16,345	and Accouts Payable	and Accouts Payable
	December 31, 2020 26,026 641 26,667	March 31, 2020
2021 $ 32,381 - $ 32,381
		27,892 704
		28,596

(Continued)

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

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

(iii) Leases
1) Rental expenses

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

Rental Expenses For the Three Months Ended March 31 2021 2020 $ 30 - 608 578 127 15 $ 765 593 Guarantee Deposit Paid (Recognized under other non- current financial assets)	Rental Expenses For the Three Months Ended March 31 2021 2020 $ 30 - 608 578 127 15 $ 765 593 Guarantee Deposit Paid (Recognized under other non- current financial assets)	Rental Expenses	Rental Expenses	Rental Expenses
		For the Three Months Ended March 31
				2020
				- 578 15
				593
March 31, 2021 $ 443	December 31, 2020 443		March 31, 2020
			443

2) Rental revenues

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

Associates Other related parties	Rental Revenues	Rental Revenues
	For the Three Months Ended March 31
	2021 $ 65 321 $ 386	2020 76 321 397

Associates	Guarantee Deposit Received (Recognized under other non-current liabilities)	Guarantee Deposit Received (Recognized under other non-current liabilities)	Guarantee Deposit Received (Recognized under other non-current liabilities)
	March 31, 2021 $ 300	December 31, 2020 300	March 31, 2020
			300

(Continued)

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

(iv) Providing services to related party

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

Associates Joint ventures	Service Revenues	Service Revenues
	For the Three Months Ended March 31
	2021 $ 75 1,451 $ 1,526	2020
		75 1,840
		1,915

(v) Non-performing receivables

	Total Claims
March 31, 2021 $ 796,845	December 31, 2020 796,845 Costs of Claims	March 31, 2020
		796,845

	December 31, 2020 575,000	March 31, 2020
		575,000

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

(vi) Guarantees and endorsements

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

Joint ventures: The Splendor Hospitality Others	Borrowing Limits	Borrowing Limits	March 31, 2020 2,150,000 45,680
	March 31, 2021 $ 2,150,000 45,680 $ 2,195,680	December 31, 2020 1,900,000 45,680 1,945,680
			2,195,680

(Continued)

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

Joint ventures: The Splendor Hospitality Others	Actual Usage Amount	Actual Usage Amount	Actual Usage Amount
	March 31, 2021 $ 1,610,000 45,680 $ 1,655,680	December 31, 2020 1,620,000 45,680 1,665,680	March 31, 2020 1,620,000 45,680
			1,665,680

(vii) Guarantee for bank borrowings

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

(viii) Property transaction

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 March 31	For the Three Months Ended March 31
	2021 $ -	2020
		834

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

is as follows:
Other related parties	March 31, 2021 $ 318	December 31, 2020 318	March 31, 2020
			138

(ix) Other transactions

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

Other related parties: Foundation	Donation	Donation
	For the Three Months Ended March 31
	2021 $ -	2020
		15

2) The information on management services provided by related parties is as follows:

Other related parties: Foundation	Management Service Expenses	Management Service Expenses
	For the Three Months Ended March 31
	2021 $ -	2020
		3,500

(Continued)

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

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

Other related parties	Other Expenses	Other Expenses
	For the Three Months Ended March 31
	2021 $ -	2020
		28

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

Joint ventures: The Splendor Hospitality Others	Interest Revenues	Interest Revenues
	For the Three Months Ended March 31
	2021 $ 3,365 82 $ 3,447	2020
		3,260 81
		3,341

5) Other receivables and advance payments from related parties

Associates: Keng-Hsin Urban Renewal Others Joint ventures Other related parties	Other Receivables (including advance payments) March 31, 2021 December 31, 2020 March 31, 2020 $ 48,810 35,114 30,183 420 95 100 74 77 131 527 122 4,135 $ 49,831 35,408 34,549	Other Receivables (including advance payments) March 31, 2021 December 31, 2020 March 31, 2020 $ 48,810 35,114 30,183 420 95 100 74 77 131 527 122 4,135 $ 49,831 35,408 34,549	Other Receivables (including advance payments) March 31, 2021 December 31, 2020 March 31, 2020 $ 48,810 35,114 30,183 420 95 100 74 77 131 527 122 4,135 $ 49,831 35,408 34,549
		December 31, 2020 35,114 95 77 122 35,408	March 31, 2020 30,183 100 131 4,135 34,549

6) Other payables and advance receipts from related parties

Associates Joint ventures Other related parties Key management	Associates Joint ventures Other related parties Key management	Associates Joint ventures Other related parties Key management
	March 31, 2021 $ 158 40 - - $ 198	December 31, 2020 8,384 2,514 25 85 11,008

(Continued)

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

(d) Key management transactions

The compensation of key management is as follows:

For the Three Months Ended March 31 2021 2020 Short-term employee benefits $ 46,532 22,697 Post-employment benefits 477 414 $ 47,009 23,111 ledged assets he information on pledged assets' carrying value is as follows: Pledged Assets Object March 31, 2021 December 31, 2020 March 31, 2020 Land (including other non- current assets) The credit limits of long-term and short-term bank borrowings $ 1,424,638 1,424,638 1,466,374 Buildings 〃 315,619 319,590 332,600 Investment properties 〃 636,586 637,021 597,490 Inventories—Land held for development 〃 5,790,877 5,790,877 5,841,338 Inventories—Construction in progress 〃 6,432,379 5,330,961 4,222,195 Inventories—Buildings and land held for sale The credit limits of short-term borrowings 2,027,811 2,226,801 3,776,433 Other current financial assets Bank acceptance bills 49,760 13,850 38,453 〃 Trusts 893,401 967,447 665,164 $ 17,571,071 16,711,185 16,940,047	For the Three Months Ended March 31 2021 2020 Short-term employee benefits $ 46,532 22,697 Post-employment benefits 477 414 $ 47,009 23,111 ledged assets he information on pledged assets' carrying value is as follows: Pledged Assets Object March 31, 2021 December 31, 2020 March 31, 2020 Land (including other non- current assets) The credit limits of long-term and short-term bank borrowings $ 1,424,638 1,424,638 1,466,374 Buildings 〃 315,619 319,590 332,600 Investment properties 〃 636,586 637,021 597,490 Inventories—Land held for development 〃 5,790,877 5,790,877 5,841,338 Inventories—Construction in progress 〃 6,432,379 5,330,961 4,222,195 Inventories—Buildings and land held for sale The credit limits of short-term borrowings 2,027,811 2,226,801 3,776,433 Other current financial assets Bank acceptance bills 49,760 13,850 38,453 〃 Trusts 893,401 967,447 665,164 $ 17,571,071 16,711,185 16,940,047	For the Three Months Ended March 31 2021 2020 Short-term employee benefits $ 46,532 22,697 Post-employment benefits 477 414 $ 47,009 23,111 ledged assets he information on pledged assets' carrying value is as follows: Pledged Assets Object March 31, 2021 December 31, 2020 March 31, 2020 Land (including other non- current assets) The credit limits of long-term and short-term bank borrowings $ 1,424,638 1,424,638 1,466,374 Buildings 〃 315,619 319,590 332,600 Investment properties 〃 636,586 637,021 597,490 Inventories—Land held for development 〃 5,790,877 5,790,877 5,841,338 Inventories—Construction in progress 〃 6,432,379 5,330,961 4,222,195 Inventories—Buildings and land held for sale The credit limits of short-term borrowings 2,027,811 2,226,801 3,776,433 Other current financial assets Bank acceptance bills 49,760 13,850 38,453 〃 Trusts 893,401 967,447 665,164 $ 17,571,071 16,711,185 16,940,047	For the Three Months Ended March 31 2021 2020 Short-term employee benefits $ 46,532 22,697 Post-employment benefits 477 414 $ 47,009 23,111 ledged assets he information on pledged assets' carrying value is as follows: Pledged Assets Object March 31, 2021 December 31, 2020 March 31, 2020 Land (including other non- current assets) The credit limits of long-term and short-term bank borrowings $ 1,424,638 1,424,638 1,466,374 Buildings 〃 315,619 319,590 332,600 Investment properties 〃 636,586 637,021 597,490 Inventories—Land held for development 〃 5,790,877 5,790,877 5,841,338 Inventories—Construction in progress 〃 6,432,379 5,330,961 4,222,195 Inventories—Buildings and land held for sale The credit limits of short-term borrowings 2,027,811 2,226,801 3,776,433 Other current financial assets Bank acceptance bills 49,760 13,850 38,453 〃 Trusts 893,401 967,447 665,164 $ 17,571,071 16,711,185 16,940,047	For the Three Months Ended March 31 2021 2020 Short-term employee benefits $ 46,532 22,697 Post-employment benefits 477 414 $ 47,009 23,111 ledged assets he information on pledged assets' carrying value is as follows: Pledged Assets Object March 31, 2021 December 31, 2020 March 31, 2020 Land (including other non- current assets) The credit limits of long-term and short-term bank borrowings $ 1,424,638 1,424,638 1,466,374 Buildings 〃 315,619 319,590 332,600 Investment properties 〃 636,586 637,021 597,490 Inventories—Land held for development 〃 5,790,877 5,790,877 5,841,338 Inventories—Construction in progress 〃 6,432,379 5,330,961 4,222,195 Inventories—Buildings and land held for sale The credit limits of short-term borrowings 2,027,811 2,226,801 3,776,433 Other current financial assets Bank acceptance bills 49,760 13,850 38,453 〃 Trusts 893,401 967,447 665,164 $ 17,571,071 16,711,185 16,940,047
		2021	46,532 477 47,009 December 31, 2020 1,424,638 319,590 637,021 5,790,877 5,330,961 2,226,801 13,850 967,447 16,711,185


Land (including other non- current assets) Buildings Investment properties Inventories—Land held for development Inventories—Construction in progress Inventories—Buildings and land held for sale Other current financial assets 〃	The credit limits of long-term and short-term bank borrowings 〃〃〃〃 The credit limits of short-term borrowings Bank acceptance bills Trusts			1,466,374 332,600 597,490 5,841,338 4,222,195 3,776,433 38,453 665,164
				16,940,047

(8) Pledged assets

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

(9) Significant commitments and contingencies

(a) The Group’s unrecognized contractual commitments are as follows:
(i) 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)	March 31, 2021 $ 11,536,709 $ 4,763,604	December 31, 2020 11,020,485 3,787,659	March 31, 2020
			8,806,969
			1,667,738

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

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

Total contract price Total amounts received under contracts (recognized under current contract liabilities)	March 31, 2021 $ 16,908,978 $ 2,854,405	December 31, 2020 15,265,856 2,434,499	March 31, 2020
			10,808,262
			1,603,135

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

March 31, 2021 December 31, 2020 Total contract price $ 200,944 200,944 Total amounts paid under contracts (recognized under prepayments) $ 116,570 116,570 (iv) The Group’s security deposits paid to landlords for joint construction projects March 31, 2021 December 31, 2020 Security deposits of joint construction projects (recognized under other current and non-current financial assets) $ 390,992 352,223 (v) The Group’s security deposits for renting real estates is as follows: March 31, 2021 December 31, 2020 Security deposits (recognized under other current and non-current financial assets) $ 99,289 99,289	March 31, 2020
	200,944
	116,570
	is as follows: March 31, 2020
	304,334
	March 31, 2020
	97,412

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

Total contract price Total amounts paid under contracts (recognized under inventories— prepayments for land)	March 31, 2021 $ 283,842 $ 166,995	December 31, 2020 283,842 166,995	March 31, 2020
			289,542
			123,269

(Continued)

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

(vii) 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 March 31, 2021 and 2020, the accumulated royalty payments amounted to $126,000 thousand, respectively, which was recognized under other non-current assets and transferred to right-of-use assets when the first application of IFRS16 on January 1, 2019, and was depreciated by the contract term.
(b) Contingencies
(i) Please refer to Note 7 for the Group’s guarantees and endorsements for related parties' loans as of March 31, 2021 and 2020.
(ii) Contingencies for the Company and its subsidiary, Sunflower Investment, regarding the stages of Daguangsan tax petition for real estate transaction and non-performing receivables is as follows:

Litigant
The
Company
Sunflower
Investment

Issue

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
Since
2011,
Sunflower
Investment had received
several
administrative
penalties
approved
by
National Tax Bureau of
Taipei which arose from
the withholding tax, value-
added
tax,
enterprise
income
tax
and
undistributed earning tax
of the Daguangsan non-
performing
receivables.
Sunflower Investment has
sought
administrative
remedy
for
the
aforementioned verdict.

Current Status

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

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

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(Continued)

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

(12) Other:

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

By function By item	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021			2020
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	176,037	156,214	332,251	144,049	135,141	279,190
Labor and health insurance	14,670	12,023	26,693	11,362	10,034	21,396
Pension	11,223	8,664	19,887	8,648	6,317	14,965
Others	16,775	11,981	28,756	13,716	9,568	23,284
Depreciation	181,276	73,419	254,695	170,557	71,305	241,862
Amortization	439	789	1,228	459	4,750	5,209

(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 three months ended March 31, 2021, required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

(In Thousands of NTD)

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance During the Period	Ending Balance (Note 1)	Actual Borrowing Amount	Interest Rate	Nature for Financing (Note 2)	Transaction Amount for Business	Reasons for Short-term Financing	Allowanc for Doubtful Accounts	Collateral	Collateral	Financing Limit for Each Borrower (Note 3)	Aggregate Financing Limit (Note 4)
													e Item	Value
0	The Company	The Hotel National	Accounts receivable due from related parties	Yes	106,615	106,615	53,615	1.15%	2	-	Operation requirements	-		-	3,635,495	4,847,326
1	Tianjin CMT	Suzhou CMB	Accounts receivable due from related parties	Yes	219,000	217,000	217,000	0.75%	2	-	Operation requirements	-		-	325,437	433,916
1	Tianjin CMT	CMW (Tianjin)	Accounts receivable due from related parties	Yes	197,100	195,300	195,300	0.75%	2	-	Operation requirements	-		-	325,437	433,916
2	Suzhou CMS	CMH	Accounts receivable due from related parties	Yes	437,000	434,000	434,000	0.75%	2	-	Operation requirements	-		-	1,162,193	1,549,590

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

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

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

Note 4: The lender’s total amount available for lending shall not exceed 40% of its net worth. Note 5: Intra-group transactions have been eliminated in the consolidated financial statements.

(ii) Guarantees and endorsements for other parties:

(In Thousands of NTD)

No.	Name of Guarantor/ Endorse	Counter-party of Guarantee and Endorsement	Counter-party of Guarantee and Endorsement	Limitation on Amount of Guarantees and Endorsements for a Specific Enterprise (Note 4)	Highest Balance for Guarantees and Endorsements During the Period	Ending Balance (Note 2)	Actual Borrowing Amount	Property Pledged for Guarantees and Endorsements	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amount for Guarantees and Endorsements (Note 5)	Parent Company Endorsements/ Guarantees to Third Parties on Behalf of Subsidiary (Note 3)	Subsidiary Endorsements/ Guarantees to Third Parties on Behalf of Parent Company (Note 3)	Endorsements/ Guarantees to Third Parties on Behalf of Companies in Mainland China (Note 3)
		Name	Relationship with the Company (Note 1)
0	The Company	Sunflower Investment	1	4,847,326	110,000	110,000	64,000	-	% 0.91	6,059,158	Y	N	N
0	The Company	The Hotel National	1	4,847,326	100,000	100,000	40,000	-	% 0.83	6,059,158	Y	N	N
0	The Company	Shangrila Tourism	1	4,847,326	902,500	902,500	430,000	-	% 7.45	6,059,158	Y	N	N
0	The Company	The Splendor Hospitality	2	4,847,326	2,150,000	2,150,000	1,610,000	-	% 17.74	6,059,158	N	N	N
0	The Company	CMAAN Health	2	4,847,326	45,680	45,680	45,680	-	% 0.38	6,059,158	N	N	N
1	CMAI N.A.	Pilot	4	51,862	47,228	47,228	46,326	-	% 91.06	51,862	N	N	N
2	CMI	UEA	3	4,064,234	1,229,597	1,229,597	1,229,597	-	% 12.10	5,080,293	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.

(Continued)

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

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%, CMAI N.A.100%, 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%, CMAI N.A.100%, and CMI 50%.

(iii) Securities held as of March 31, 2021 (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	135,300	% 3.12	135,300
The Company	YUHUA Venture Capital Co., Ltd.	-	Non-current financial assets at FVOCI	73,173	435	% 1.25	435
The Company	FUHUA Venture Capital Co., Ltd.	-	Non-current financial assets at FVOCI	51,975	1,574	% 1.67	1,574
The Company	GUANGYUAN Investment Co., Ltd.	-	Non-current financial assets at FVOCI	3,750,000	31,580	% 3.91	31,580
The Company	DEVELOPMENT Venture Capital Co., Ltd.	The Company is the legal person	Non-current financial assets at FVOCI	4,400,000	25,935	% 4.00	25,935
The Company	Pacific Electric Wire & Cable Co., Ltd.	-	Current financial assets at FVTPL	81,666	-	% 0.01	-
Sunflower Investment	YungTay Engineering Co., Ltd.	-	Non-current financial assets at FVOCI	1,009,000	60,540	% 0.25	60,540
Sunflower Investment	i1. COM, INC.	-	Non-current financial assets at FVOCI	100,000	-	% 0.52	-
The Hotel National	Century National Technology Co., Ltd.	-	Non-current financial assets at FVOCI	35,600	-	% 2.34	-
Far Hsing	Acore Material technology Co., Ltd.	-	Non-current financial assets at FVOCI	42,466	-	% 2.12	-

(iv) Individual securities acquired or disposed of with accumulated amount exceeding NT$300 million or 20% of the share capital: None.
(v) Information on the acquisition of real estate exceeding NT$300 million or 20% of the share capital: None.
(vi) Information on the disposal of real estate exceeding of NT$300 million or 20% of the share capital: None.
(vii) Information regarding related-party transactions for purchases and sales exceeding NT$300 million or 20% of the share capital:

(In Thousands of NTD)

									(In Thousands of	(In Thousands of	NTD)
Name of Company	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others		Notes/Accounts Receivable (Payable)		Note
			Purchase/Sale	Amount	Percentage of Total Purchases/Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/Accounts Receivable (Payable)
uzhou CMS	CMI	Subsidiaries	Sale	330,428	% 39.12	120~180 days	-	-	1,382,478	69.36%
MW (Tianjin)	CMW (C.I.)	Subsidiaries	Sale	441,409	% 38.55	120~180 days	-	-	1,787,850	59.72%

Note : 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

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

(In Thousands of NTD/In CNY)

Name of Company	Counter-party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
CMI	CMB (H.K.)	Parent company	Accounts receivable due from related parties, other 189,825	-	-	-	-	-
CMW (C.I.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 2,298,161	-	-	-	CNY 6,900,000	-
CMP (H.K.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 352,578	-	-	-	-	-
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Accounts receivable due from related parties 1,787,850	1.00	-	-	CNY 8,867,109	-
Tianjin CMT	CMI	Subsidiaries	Accounts receivable due from related parties 269,209	-	-	-	-	-
Tianjin CMT	CMW (Tianjin)	Affiliates	Accounts receivable due from related parties, other 195,300	-	-	-	-	-
Tianjin CMT	Suzhou CMB	Affiliates	Accounts receivable due from related parties, other 217,000	-	-	-	-	-
Suzhou CMS	CMI	Subsidiaries	Accounts receivable due from related parties 1,382,478	0.97	-	-	CNY 8,391,203	-
Suzhou CMS	CMH	Affiliates	Accounts receivable due from related parties, other 434,000	-	-	-	-	-
Suzhou CMB	CMI	Subsidiaries	Accounts receivable due from related parties 106,957	1.18	-		-	-

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

(ix) Trading in derivative instruments: None.

(x) Business relationships and significant intercompany transactions:

(In Thousands of NTD)

No. (Note 1)	Name of Company	Name of Counter-party	Nature of Relationship (Note 2)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)
				Account	Amount	Trading Terms	Percentage of the Total Consolidated Revenue or Total Assets (Note 4)
0	China Metal Products	Atrans Precision	1	Operating revenue	11,702	60~90 days	0.32%
1	CMW (Tianjin)	CMW (C.I.)	2	Operating revenue	441,409	180 days	12.23%
3	Suzhou CMS	CMI	2	Operating revenue	330,428	180 days	9.15%
4	Suzhou CMB	Suzhou CMS	3	Operating revenue	19,458	90 days	0.54%
4	Suzhou CMB	CMI	2	Operating revenue	29,366	180 days	0.81%
5	National Management	China Metal Products	2	Operating revenue	18,850	OA 25 days	0.52%
0	China Metal Products	Atrans Precision	1	Accounts receivable due from related parties	17,871	60~90 days	0.04%
1	CMW (Tianjin)	CMW (C.I.)	2	Accounts receivable due from related parties	1,787,850	180 days	3.93%
2	Tianjin CMT	CMI	2	Accounts receivable due from related parties	269,209	180 days	0.59%
2	Tianjin CMT	CMW (Tianjin)	3	Accounts receivable due from related parties	43,163	90 days	0.09%
3	Suzhou CMS	CMI	2	Accounts receivable due from related parties	1,382,478	180 days	3.04%
4	Suzhou CMB	CMB (H.K.)	2	Accounts receivable due from related parties	18,808	180 days	0.04%
4	Suzhou CMB	CMI	2	Accounts receivable due from related parties	106,957	180 days	0.24%
4	Suzhou CMB	Suzhou CMS	3	Accounts receivable due from related parties	30,040	90 days	0.07%
7	CMW(C.I.)	CMAI	3	Accounts receivable due from related parties	16,261	90~120 days	0.04%
0	China Metal Products	The Hotel National	1	Other receivables due from related parties	54,070	-	0.12%
2	Tianjin CMT	CMW (Tianjin)	3	Other receivables due from related parties	195,300	-	0.43%
2	Tianjin CMT	Suzhou CMS	3	Other receivables due from related parties	11,308	-	0.02%

(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)
2	Tianjin CMT	Suzhou CMB	3	Other receivables due from related parties	217,000	-	0.48%
3	Suzhou CMS	CMH	3	Other receivables due from related parties	434,000	-	0.96%
6	CMI	CMB (H.K.)	1	Other receivables due from related parties	189,825	-	0.42%
7	CMW (C.I.)	CMW (Tianjin)	1	Other receivables due from related parties	46,149	-	0.10%
7	CMW (C.I.)	CMI	2	Other receivables due from related parties	2,298,161	-	5.06%
9	CMP (H.K.)	CMI	2	Other receivables due from related parties	352,578	-	0.78%
11	CMAI	CMAI (N.A.)	1	Other receivables due from related parties	21,683	-	0.05%
10	CHINGENG Land Development	PUJEN Land Development	2	Other receivables due from related parties	48,810	-	0.11%
8	CMB (H.K.)	Suzhou CMB	1	Other long-term receivables due from related parties	24,812	-	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 three months ended March 31, 2021 (excluding information on investees in Mainland China):

Mainland China):	Mainland China):	Mainland China):	Mainland China):
						(In Thousands of NTD/In USD and CNY)
Name of Investor	Name of Investee	Location	Main Businesses	Original Investment Amount		Balance as of March 31, 2021			Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				March 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
The Company	UEA	British Virgin Islands	Investing in CMI	865,286	865,286	667,820	% 100.00	7,325,454	156,976	156,976	Subsidiaries
The Company	Sunflower Investment	Taiwan	Investing	99,000	99,000	67,006,291	% 99.00	927,011	8,766	8,679	Subsidiaries
The Company	Atrans Precision	Taiwan	Vehicle parts processing	247,218	247,218	25,782,134	% 72.24	376,157	1,522	1,015	Subsidiaries
The Company	CMJ	Japan	Cast iron product retailing	4,887	4,887	500	% 83.33	82,519	14,916	12,429	Subsidiaries
The Company	CMAI	Hong Kong	Vehicle parts retailing	15,466	15,466	940,000	% 94.00	137,445	2,607	2,451	Subsidiaries
The Company	Pu Sheng Construction	Taiwan	Residents, commercial buildings and factories leasing and developing	-	30	-	% -	-	(17)	5,538	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	4,149,093	76,838	37,860	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)	(148)	-	Investees accounted for using equity method
The Company	The Hotel National	Taiwan	International tourist hotel services	1,305,952	1,305,233	31,200,000	% 100.00	737,703	(8,716)	(9,188)	Subsidiaries
The Company	National Management	Taiwan	Management and consulting services	10,000	10,000	1,000,000	% 100.00	16,665	1,975	1,667	Subsidiaries
The Company	The Splendor Hospitality	Taiwan	International tourist hotel services	975,000	975,000	97,500,000	% 50.00	232,173	(35,426)	(21,078)	Joint ventures accounted for using equity method
The Company	Shangrila Tourism	Taiwan	Amusement park and hotel services	359,470	359,470	18,131,840	% 80.00	193,512	(130)	(887)	Subsidiaries
The Company	CMAAN Health	Taiwan	Management and consulting services	50,000	50,000	5,000,000	% 50.00	40,298	4,363	2,705	Joint ventures accounted for using equity method
The Company	InterContinental Taichung	Taiwan	International tourist hotel services	300	300	30,000	% 100.00	245	(3)	(3)	Subsidiaries

(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 March 31, 2021	Balance as of March 31, 2021	Balance as of March 31, 2021	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				March 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
The Company	Calligraphy Greenway Plaza Co., Ltd.	Taiwan	Management and consulting services	30,000	30,000	3,000,000	% 100.00	30,570	322	630	Subsidiaries
Sunflower Investment	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	280,768	280,768	42,269,213	% 15.07	1,068,518	76,838	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Atrans Precision	Taiwan	Vehicle parts processing	77,836	77,836	4,737,380	% 13.27	68,783	1,522	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Amida Trustlink Assets	Taiwan	Real estate developing, leasing and financial claims acquiring from financial institutions	-	-	5,951,619	% 12.50	(7,727)	(148)	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	27,978	(17,232)	Exempt from disclosure	Investee accounted for using equity method
Sunflower Investment	Fantasystory Inc.	Taiwan	Interior design, landscape design, and urban renewal	19,793	19,793	1,742,746	% 19.80	18,133	-	Exempt from disclosure	Investee accounted for using equity method
UEA	CMI	Cayman Islands	Investing in CMI (BVI) and cast iron product retailing	USD 136,536,250	USD 136,536,250	823,281,475	% 82.55	USD 298,266,307	USD 6,910,737	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 1,221,760,541	CNY 25,497,125	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 1,770,227,158	CNY 28,679,890	Exempt from disclosure	Subsidiaries of CMI
CMI	CMB (H.K.)	Hong Kong	Investing in Suzhou CMB	USD 85,820,000	USD 85,820,000	82,000,000	% 100.00	CNY 573,267,517	CNY (2,485,705)	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 1,224,496,716	CNY 25,497,125	Exempt from disclosure	CMI(BVI)’s subsidiary
CMAI	CMAI Holding	USA	Investing	USD 8,328,644	USD 8,328,644	10,000	% 100.00	USD 2,571,657	USD (95,052)	Exempt from disclosure	Subsidiaries of CMAI
CMAI Holding	Pilot	USA	Assets leasing	USD 8,328,644	USD 8,328,644	-	% 100.00	USD 2,571,657	USD (95,052)	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 1,692,808	USD (124,362)	Exempt from disclosure	Subsidiaries of Pilot
Atrans Precision	FAR HSING (SAMOA)	SAMOA	Investing	USD 3,922,055	USD 3,922,055	3,922,055	% 100.00	123,185	(3,729)	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 4,175,529	USD (607,391)	Exempt from disclosure	Investees of FAR HSING (SAMOA) accounted for using equity method
PUJEN Land Development	Pu Sheng Construction	Taiwan	Residents, commercial buildings and factories leasing and developing	-	20	-	% -	-	(17)	Exempt from disclosure	Subsidiaries of the Company
PUJEN Land Development	Keng-Hsin Urban Renewal	Taiwan	Residents, commercial buildings and factories leasing and developing	250,928	250,928	32,864,188	% 30.00	311,213	-	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	72,500	72,500	7,250,000	% 50.00	69,351	(8)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUJEN CHENGMEI Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	94,500	94,500	9,450,000	% 70.00	69,039	(38)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUCHIA Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	35,000	35,000	3,500,000	% 50.00	27,584	(470)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	Shangrila Tourism	Taiwan	Amusement park and hotel services	89,867	89,867	4,532,960	% 20.00	48,648	(130)	Exempt from disclosure	Subsidiaries of the Company
PUJEN Land Development	Hua-Pu Development	Taiwan	Residents, commercial buildings and factories leasing and developing	5,000	5,000	500,000	% 50.00	5,322	365	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	405,000	% 36.82	4,951	631	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equity method

(Continued)

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

(c) Information on investment in Mainland China:

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

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

Name of Investee	Main Businesses	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of March 31, 2021	Net Income (Losses) of the Investee	Percentage of Ownership	Investment Income (Losses) (Notes 2,3)	Book Value (Note 3)	Accumulated Remittance of Earnings in Current Period (Note 5)
					Outflow	Inflow
Tianjin CMT	Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	856,200 (USD30,000)	2	388,238	-	-	388,238	(1,705) (CNY(389))	82.55%	(1,408) (CNY(321))	1,084,790 (CNY249,952)	82,542
Suzhou CMS	Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	684,960 (USD24,000)	2	423,406	-	-	423,406	112,496 (CNY25,684)	82.55%	92,838 (CNY21,196)	3,874,807 (CNY892,813)	14,601
Suzhou CMB	Cast iron product designing, manufacturingand retailing	2,340,280 (USD82,000)	2	-	-	-	-	(5,369) (CNY(1,226))	82.55%	(4,432) (CNY(1,012))	2,664,565 (CNY613,955)	-
CMW (Tianjin)	Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling	913,280 (USD32,000)	2	-	-	-	-	125,294 (CNY28,606)	82.55%	104,324 (CNY23,818)	4,748,269 (CNY1,094,071)	-
CMH	Vehicle parts, farm wagon parts, industrial wagon parts household appliances parts and E&M as-casting and molds developing, manufacturing, selling and after sales services	913,280 (USD32,000)	2	-	-	-	-	(2,650) (CNY(605))	82.55%	(2,187) (CNY(499))	946,068 (CNY217,988)	-
Qingdao Sourcing Specialists	Cast iron product retailing	2,854 (USD100)	2	-	-	-	-	2,979 (JPY11,123)	83.33%	2,482 (JPY9,269)	44,720 (JPY173,536)	-

(ii) Limitation on investment in Mainland China:

(In Thousands of NTD and USD)

		(In Thousands of NTD and USD)
Accumulated Investment in Mainland China as of March 31, 2021	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on Investment (Note 4)
811,644	5,954,043 (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, 2020 to March 2, 2023. The restriction on the cumulative investment amount or proportion in China is not applicable.
Note 5: As of March 31, 2021, the company had obtained a surplus of $2,459,512 thousand (USD80,255 thousand) from the investment companies set up in the third region. The surplus was remitted to the companies by the subsidiaries which was invested indirectly in China and then was remitted to Taiwan. It was impossible to distinguish the remittance from the company in China.
Note 6: The aforementioned investments have been eliminated in the consolidated financial statements.
Note 7: The amount in the table is translated by the spot rate on the financial reporting date.
(iii) Significant transactions: None.

(Continued)

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

(d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Chain-Yuan Investment Co., Ltd.	50,939,965	% 13.54
Fubon Life Assurance Co., Ltd.	27,944,000	% 7.42
Mr. Ming Shiann, Ho	26,312,540	% 6.99

(14) Segment information:

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

For the Three Months Ended March 31, 2021 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Three Months Ended March 31, 2020 Revenue from external customers $ Intersegment revenues Total revenue $ Reportable segment profit or loss $	Metal Manufacturing Segment	Real Estate Development Segment 381,110 850 381,960 93,930 3,463 1,292 4,755 (77,720)	Lifestyle Hospitality Segment 167,809 23,611 191,420 9,875 147,894 19,340 167,234 (37,987)	Reconciliation and Elimination - (900,838) (900,838) (92,152) - (502,129) (502,129) (108,120)	Total
	$ 3,060,794 876,377 $ 3,937,171 $ 264,125 2,114,826 481,497 2,596,323 169,713				3,609,713 -
					3,609,713
					275,778
					2,266,183 -
					2,266,183
					(54,114)

Note1: The amount of assets and liabilities of the Group’s reportable segments was not provided to the management. It is not required for disclosure.

AI assistant

CMP — Interim / Quarterly Report 2021

51855_rns_2021-11-15_3cb8972a-e346-48ec-bf33-8e578f5f3502.pdf

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

Reviewed only, not audited in accordance with generally accepted auditing standards

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three Months Ended March 31, 2021 and 2020

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Three Months Ended March 31, 2021 and 2020

(1) Company history

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

(3) New standards, amendments and interpretations adopted:

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

(4) Summary of significant accounting policies

(a) Statement of compliance

(b) Basis of consolidation

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

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

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

(d) Employee benefits

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

(6) Explanation of significant accounts:

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

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

(d) Notes and accounts receivable

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

(e) Inventories

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

(f) Investments accounted for using equity method

(i) Associates

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

(ii) Joint ventures

(g) Loss of control over a subsidiary

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

(h) Property, plant and equipment

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

(k) Intangible assets

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

(l) 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

(n) Long-term borrowings

(i) Borrowing and repayment

(ii) Collateral for bank borrowings

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

(o) Lease liabilities

(i) Real estate leases

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

(ii) Other leases

(p) Provisions

(i) Warranties

(q) Operating leases

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

(ii) Defined contribution plans

(s) Income tax

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

CMP Interim / Quarterly Report 2021