Stock Code:1532

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

with Independent Auditors’ Review Report For the Six Months Ended June 30, 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 12～44 44～50 51 51～53 53 53 54 55～58 59～60 60～61 61 62

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 June 30, 2021 and 2020, and the related consolidated statements of comprehensive income, for the three months and six months ended June 30, 2021 and 2020, and the changes in equity and cash flows for the six months ended June 30, 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 $5,095,029 thousand and $5,279,323 thousand, constituting 10.45% and 12.30% of the consolidated total assets; and the total liabilities amounting to $4,199,026 thousand and $3,469,451 thousand, constituting 12.65% and 12.33% of the consolidated total liabilities as of June 30, 2021 and 2020, respectively, as well as the total comprehensive income (loss) amounting to $(13,550) thousand, $(50,239) thousand, $(22,546) thousand and $(110,663) thousand, constituting (49.33)%, 88.72%, (15.02)% and 43.74% of the consolidated total comprehensive income (loss) for the three months and six months ended June 30, 2021 and 2020, respectively.

Furthermore, as stated in Note 6(f), the other equity accounted investments of the Group in its investee companies of $696,554 thousand and $777,708 thousand as of June 30, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $(38,964) thousand, $(37,420) thousand, $(61,419) thousand and $(68,314) thousand for the three months and six months ended June 30, 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 June 30, 2021 and 2020, and of its consolidated financial performance for the three months and six months ended June 30, 2021 and 2020, and its consolidated cash flows for the six months ended June 30, 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 Shih-Chin Chih and Kuo-Yang Tseng.

KPMG

Taipei, Taiwan (Republic of China) August 12, 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 June 30, 2021 and 2020

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2021, December 31, 2020, and June 30, 2020 (Expressed in Thousands of New Taiwan Dollars)

June 30, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (Notes 6(a) and (z)) $ 4,186,529 9 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)) 3,887,874 8 1180 Accounts receivable due from related parties, net (Notes 6(z) and 7) 3,094 - 1200 Other receivables (Note 6(z)) 73,653 - 1210 Other receivables due from related parties (Notes 6(z) and 7) 46,455 - 130X Inventories (Notes 6(e), 8 and 9(a)) 21,131,088 43 1410 Prepayments (Note 9(a)) 300,459 1 1470 Other current assets 448,526 1 1476 Other current financial assets (Notes 6(z), 8 and 9(a)) 1,525,948 3 1480 Incremental costs of obtaining contracts 360,182 1 Total current assets 31,963,808 66 Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (Notes 6(c) and (z)) 216,561 1 1550 Investments accounted for using equity method (Note 6(f)) 696,554 1 1600 Property, plant and equipment (Notes 6(h), 8 and 9(a)) 10,254,114 21 1755 Right-of-use assets (Note 6(i)) 2,125,231 4 1760 Investment property, net (Notes 6(j) and 8) 708,211 2 1780 Intangible assets (Note 6(k)) 393,294 1 1840 Deferred tax assets 31,451 - 1900 Other non-current assets (Notes 6(h), 7, 8 and 9(a)) 1,648,775 3 1975 Non-current net defined benefit assets 13,931 - 1980 Other non-current financial assets (Notes 6(l), (z), 7 and 9(a)) 683,655 1 Total non-current assets 16,771,777 34 Total assets $ 48,735,585 100	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	June 30, 2020 Amount % 3,728,199 9 45,440 - 3,247,212 7 370 - 60,519 - 41,911 - 18,397,727 43 285,789 1 294,932 1 1,241,626 3 192,482 - 27,536,207 64 208,065 - 777,708 2 9,438,819 22 2,305,525 5 636,589 2 398,061 1 36,463 - 903,750 2 8,443 - 679,748 2 15,393,171 36 42,929,378 100 Liabilities and equity Current liabilities: 2100 Short-term borrowings (Notes 6(m) and (z)) 2130 Current contract liabilities (Notes 6(v), 7 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 3500 Treasury share Total equity attributable to owners of parent: 36XX Non-controlling interests Total equity Total liabilities and equity	June 30, 2021		December 31, 2020		June 30, 2020 Amount % 10,142,156 24 1,894,100 4 1,996,624 5 22,838 - 1,213,645 3 8,205 - 56,298 - 185,769 - 1,169,705 3 89,933 - 16,779,273 39 8,420,602 20 621,429 1 1,896,870 4 370,033 1 40,226 - 11,349,160 26 28,128,433 65 3,852,521 9 1,523,104 4 6,235,756 15 (283,467) (1) (224,905) (1) 11,103,009 26 3,697,936 9 14,800,945 35 42,929,378 100
			Amount %		Amount %
			$ 10,624,062 22 3,933,184 8 2,725,266 6 29,341 - 2,176,141 5 197,382 - 63,086 - 180,389 - 1,007,366 2 150,135 - 21,086,352 43 9,428,600 19 585,258 1 1,732,016 4 321,458 1 27,468 - 12,094,800 25 33,181,152 68 3,761,221 8 1,487,802 3 6,494,665 13 (2,803) - - - 11,740,885 24 3,813,548 8 15,554,433 32 $ 48,735,585 100		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

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three Months and Six Months Ended June 30, 2021 and 2020

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

For the Three M June 2021 Amount % 4000 Operating revenues (Notes 6(v) and 7) $ 3,308,803 100 5000 Operating costs (Notes 6(e) and 7) (2,626,182) (79) Gross profit from operations 682,621 21 Operating expenses (Note 7): 6100 Selling expenses (150,687) (5) 6200 Administrative expenses (361,531) (11) 6300 Research and development expenses (2,681) - 6450 Expected credit (losses) gains (Note 6(d)) (185) - Total operating expenses (515,084) (16) 6500 Net other income and expenses (Note 6(x) and 7) - - Net operating income 167,537 5 Non-operating income and expenses: 7100 Interest income (Notes 6(y) and 7) 11,568 - 7010 Other income (Notes 6(y) and 7) 42,611 1 7020 Other gains and losses (Note 6(g) and (y)) (14,123) (1) 7050 Finance costs (Note 6(y) and 7) (63,663) (1) 7375 Share of losses of associates and joint ventures accounted for using equity method (Note 6(f)) (38,964) (1) Total non-operating income and expenses (62,571) (2) Profit from continuing operations before tax 104,966 3 7950 Less: Tax expense (Note 6(s)) (19,456) (1) 8200 Net profit 85,510 2 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss: 8316 Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income (Notes 6(t) and (z)) (9,506) - 8349 Less:Income tax related to components of other comprehensive income that will not be reclassified to profit or loss - - Total items that may not be reclassified subsequently to profit or loss (9,506) - 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign financial statements (Note 6(t)) (48,535) (1) 8399 Less:Income tax related to components of other comprehensive income that will be reclassified to profit or loss - - Total items that may be reclassified subsequently to profit or loss (48,535) (1) 8300 Other comprehensive income (after tax) (58,041) (1) 8500 Comprehensive income $ 27,469 1 Net profit, attributable to: 8610 Owners of parent $ 57,806 1 8620 Non-controlling interests 27,704 1 $ 85,510 2 Comprehensive income attributable to: 8710 Owners of parent $ 13,664 - 8720 Non-controlling interests 13,805 1 $ 27,469 1 Earnings per share (expressed in dollars) (Note 6(u)) 9750 Basic earnings per share $ 0.15 9850 Diluted earnings per share $ 0.15	For the Three M June	onths Ended 30 2020 Amount % 2,341,945 100 (1,752,371) (75) 589,574 25 (98,360) (4) (331,859) (14) (2,512) - 1,026 - (431,705) (18) 1,885 - 159,754 7 16,171 1 55,460 2 (33,366) (1) (67,254) (3) (37,420) (2) (66,409) (3) 93,345 4 (3,804) - 89,541 4 - - - - - - (146,168) (6) - - (146,168) (6) (146,168) (6) (56,627) (2) 70,308 3 19,233 1 89,541 4 (47,260) (2) (9,367) - (56,627) (2) 0.18 0.18	For the Six Mo June	nths Ended 30 2020 Amount % 4,608,128 100 (3,585,429) (78) 1,022,699 22 (207,067) (4) (649,992) (14) (4,984) - 8,057 - (853,986) (18) 3,861 - 172,574 4 27,345 1 60,128 1 (7,017) - (145,485) (3) (68,314) (1) (133,343) (2) 39,231 2 (15,242) (1) 23,989 1 - - - - - - (276,992) (6) - - (276,992) (6) (276,992) (6) (253,003) (5) 12,802 1 11,187 - 23,989 1 (214,556) (4) (38,447) (1) (253,003) (5) 0.03
			2021 Amount % 6,918,516 100 (5,383,370) (78) 1,535,146 22 (307,473) (4) (729,076) (11) (6,306) - 127 - (1,042,728) (15) - - 492,418 7 29,032 - 64,772 1 (24,902) - (119,157) (2) (61,419) (1) (111,674) (2) 380,744 5 (74,618) (1) 306,126 4 (12,189) - - - (12,189) - (143,828) (2) - - (143,828) (2) (156,017) (2) 150,109 2 231,315 3 74,811 1 306,126 4 105,587 1 44,522 1 150,109 2 0.62 0.61
				0.03

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the Six Months Ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

		Equity Attributable to Owners of Parent	Equity Attributable to Owners of Parent	Equity Attributable to Owners of Parent	Equity Attributable to Owners of Parent	Equity Attributable to Owners of Parent	Equity Attributable to Owners of Parent	Equity Attributable to Owners of Parent					Non- Controlling Interests
Share Capital	Capital Surplus	Retained Earnings				Other Equity			Treasury share		Total Equity Attributable to Owners of Parent
						Exchange Differences on Translation of Foreign Financial Statements	Unrealized Gains (Losses) from Financial Assets Measured at Fair Value Through Other Comprehensive Income
Ordinary Share		Legal Reserve		Special Reserve	Unappropriated Retained Earnings
	1,523,104		1,756,147	49,081	4,764,453	(143,749) - (227,358) (227,358) - - - - - - (371,107) 32,198 - (113,526) (113,526) - - - - - (81,328)		87,640		-		11,889,197	3,852,894 11,187 (49,634) (38,447) - - - - 11,414 (127,925) 3,697,936 3,975,678 74,811 (30,289) 44,522 - - (12,927) (193,725) - 3,813,548
	- -		- -	- -	12,802 -			- -		- -
	-		-	-	12,802			-		-
	- - - - - -		45,022 - - - - -	- 7,028 - - - -				- - - - - -
	1,523,104		1,801,169	56,109				87,640
	1,487,802		1,801,169	56,109				93,833
	- -		- -	- -
	-		-	-
	- - - - -		- - - - -	- - - - -
	1,487,802		1,801,169	56,109

See accompanying notes to consolidated financial statements.

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit gains Net losses on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of losses of associates and joint ventures accounted for using equity method Losses (gains) on disposal of property, plant and equipment Property, plant and equipment transferred to expenses Loss on disposal of investment Lease modification gains Other losses 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 flows (used in) generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows used in operating activities Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income 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 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 Payment of treasury share Cash dividends paid to non-controlling interests Change in non-controlling interests Net cash flows 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 Six Month	s Ended June 30 2020 39,231 475,180 10,333 (8,057) 6,000 145,485 (27,345) (27,590) 68,314 (5,496) 171 - (1,185) 25,564 -
	2021 $ 380,744 479,134 2,366 (127) - 119,157 (29,032) (13,512) 61,419 3,532 160 5,013 (8) - (17,802) 610,300 (130,283) (3,055) 288,184 (2,915,666) (55,848) (184,993) 36,836 (137,141) (3,101,966) 317,931 37,792 1,441,164 50,231 (13,537) 1,833,581 (1,268,385) (658,085) (277,341) 22,118 13,888 (143,785) (103,354) (488,474) (460) 29,297 - 3,632 (539,174) 2,726 (928) 232 (771,717) (1,276,392) 5,565,901 (3,012,230) 105,074 2,696,202 (3,251,392) (95,299) 3,718 - (192,744) (25,121) 1,794,109 (56,519) (27,276) 4,213,805 $ 4,186,529
		661,374
		575,863 (2,414) (13,031) (698,012) (61,815) (52,611) (162,090) (36,379)
		(450,489)
		(538,002) (60,601) 506,109 (16,150) (1,140)
		(109,784)
		(560,273)
		101,101
		140,332 20,770 28,614 (172,016) (49,418)
		(31,718)
		- - 8,000 - (351,858) 10,390 (499) 629 (23,888)
		(357,226)
		4,916,152 (3,029,240) 314,780 2,503,907 (3,791,288) (94,113) 2,927 (224,905) (126,761) 11,414
		482,873
		(66,277) 27,652 3,700,547
		3,728,199

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

Notes to the Consolidated Financial Statements

For the Six Months Ended June 30, 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 August 12, 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”

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

●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements:

－
●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”

(Continued)

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

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”
●Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(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 June 30, 2021 December 31, 2020 June 30, 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	Percentage Ownership June 30, 2021 December 31, 2020 June 30, 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
				June 30, 2021	December 31, 2020
The Company The Company and Sunflower Investment The Company	United Elite Agents Limited (UEA) Atrans Precision Industries Co., Ltd. (Atrans Precision) Sunflower Investment Co., Ltd. (Sunflower Investment)	Investing Vehicle parts processing Investing		% 100.00 % 85.51 % 99.00	% 100.00 % 85.51 % 99.00

(Continued)

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

Investor	Name of Subsidiary	Principal Activity		Percentage Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 94.00 % 94.00 % 94.00 Note 1 % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.72 % 71.72 % 71.72 Note 2 % - % 50.00 % 50.00 Note 1 and 5 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Notes 1 % 100.00 % 100.00 % - Notes 1 and 4 % 82.74 % 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	Percentage Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 94.00 % 94.00 % 94.00 Note 1 % 83.33 % 83.33 % 83.33 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 71.72 % 71.72 % 71.72 Note 2 % - % 50.00 % 50.00 Note 1 and 5 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Notes 1 % 100.00 % 100.00 % - Notes 1 and 4 % 82.74 % 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
				June 30, 2021	December 31, 2020
The Company The Company 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.)	The Hotel National Co., Ltd. (The Hotel National) CHINA METAL AUTOMOTIVE INTERNATIONAL CO., LTD. (CMAI) 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))	International tourist hotel services and other hotel business approved by the Ministry of Transportation and Communications Vehicle parts retailing Cast iron product retailing Management and consulting services Residents, commercial buildings and factories leasing and developing Residents, commercial buildings and factories leasing and developing Amusement park and hotel services International tourist hotel services Management and consulting services Investing and cast iron product retailing Investing Investing Investing Cast iron product designing, manufacturing and retailing Investing Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling		% 100.00 % 94.00 % 83.33 % 100.00 % 71.72 % - % 100.00 % 100.00 % 100.00 % 82.74 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 94.00 % 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

(Continued)

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

			Percentage Ownership	Percentage Ownership	Percentage Ownership	Percentage Ownership	Percentage Ownership
			June 30,		December 31,		June 30,
Investor	Name of Subsidiary	Principal Activity	2021		2020		2020		Note
CMW (C.I.)	CMI (Wu Han) Precision Machinery	Vehicle parts, farm wagon	100.00	%	100.00	%	100.00	%	Notes 2
	Co., Ltd. (CMH)	parts, industrial wagon parts,
		household appliances parts
		and E&M as-casting and
		molds developing,
		manufacturing, selling and
		the after sales services
CMJ	Qingdao Sourcing Specialists Trading	Cast iron product retailing	100.00	%	100.00	%	100.00	%	Note 1
	Co., Ltd. (Qingdao Sourcing Specialists)
Atrans Precision FAR HSING (SAMOA) ENTERPRISE		Investing	100.00	%	100.00	%	100.00	%	Note 1
	CO., LTD. (FAR HSING (SAMOA))
PUJEN Land	CHINGENG Land Development Co.,	Residents, commercial	50.00	%	50.00	%	50.00	%	Note 1
Development	Ltd. (CHINGENG Land Development)	buildings and factories
		leasing and developing
PUJEN Land	PUJEN CHENGMEI Land Development	Residents, commercial	70.00	%	70.00	%	70.00	%	Note 1
Development	Co., Ltd. (PUJEN CHENGMEI Land	buildings and factories
	Development)	leasing and developing
PUJEN Land	PUCHIA Land Development Co., Ltd.	Residents, commercial	50.00	%	50.00	%	50.00	%	Note 1
Development	(PUCHIA Land Development)	buildings and factories
		leasing and developing
CMAI	CMAI Holding, Inc. (CMAI Holding)	Investing	100.00	%	100.00	%	100.00	%	Note 1
CMAI Holding	Pilot Drive LLC (Pilot)	Assets leasing	100.00	%	100.00	%	100.00	%	Note 1
Pilot	CMAI INDUSTRIES INC (CMAI N.A.)	Vehicle parts retailing	100.00	%	100.00	%	100.00	%	Note 1
Note 1: An non-significant subsidiary, its financial statements have 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 4thquarter of 2020.
Note 5: The Group has completed		the share transaction	on March		31, 2021.		Please refer to
	Note 6 (g) for more intormation.

(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 and cash equivalents
Cash on hand Cash in banks Time deposits Cash and cash equivalents	June 30, 2021 $ 6,345 3,093,545 1,086,639 $ 4,186,529	December 31, 2020 6,673 2,680,248 1,526,884 4,213,805	June 30, 2020
			6,794 2,337,212 1,384,193
			3,728,199

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	June 30, 2021 $ -	December 31, 2020 -	June 30, 2020
			45,440

(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.
(iii) As of June 30, 2021, December 31 and June 30, 2020, the financial assets were not pledged as collateral.

(Continued)

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

Equity investments at fair value through other comprehensive income Stocks listed on domestic markets— Yung Tay Engineering 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	June 30, 2021 $ 35,297 118,425 485 1,107 32,923 28,324 $ 216,561	December 31, 2020 62,763 135,300 435 1,574 31,580 25,935 257,587	June 30, 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) For the three months and six months ended June 30, 2021 and 2020, the Group received dividend income amounting to $13,512 thousand, $27,590 thousand, $13,512 thousand and $27,590 thousand, respectively, from the above investments measured at FVOCI.
(iii) In the second quarter of 2021, the Group has sold its shares of Yung Tay Engineering Co., Ltd., as a result of a takeover offer for cash. The shares sold had a fair value of $29,297 thousand, and wherein the Group realized a gain of $3,137 thousand, which was reclassified from other comprehensive income to retained earnings. The Group did not dispose the strategic investments during the first two quarters of 2020. Therefore, the accumulated income and loss was not transferred in equity.
(iv) Please refer to Note 6(z) for the information on credit risk (including the impairment of debt instrument investments) and market risk.
(v) As of June 30, 2021, December 31 and June 30, 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	June 30, 2021 $ 489,390 3,401,456 3,890,846 (2,972) $ 3,887,874	December 31, 2020 455,795 3,365,435 3,821,230 (3,120) 3,818,110	June 30, 2020 494,221 2,770,508 3,264,729 (17,517) 3,247,212

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

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

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

	June 30, 2020
Gross Carrying Amount $ 2,970,414 191,939 45,615 8,239 41,865 6,657 $ 3,264,729	Weighted Average Loss Rate 0% 0% 0% 0%~9% 20%~57.38% 100%	Loss Allowance Provision
		- - - 729 10,131 6,657
		17,517

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 June 30	For the Six Months Ended June 30 2021 2020 $ 3,120 26,005 (127) (8,057) (21) (431) $ 2,972 17,517
	2021 $ 3,120 (127) (21) $ 2,972

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	June 30, 2021 $ 155,735 297,145 133,190 1,098,158 71,308 7,346,655 3,594,038 7,969,841 166,995 298,023 $ 21,131,088	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	June 30, 2020
			114,000 223,955 133,127 816,676 73,920 6,061,064 3,858,817 6,681,366 121,229 313,573
			18,397,727

(Continued)

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

For the three months and six months ended June 30, 2021 and 2020, the cost of goods sold amounted to $2,626,182 thousand, $1,752,371 thousand, $5,383,370 thousand and $3,585,429 thousand, respectively. For the three months and six months ended June 30, 2021 and 2020, the (loss for inventory obsolescence) reversal gain from the (decrease) increase in inventories' net realizable value amounted to $(2,285) thousand, $51,523 thousand, $(420) thousand and $35,570 thousand, respectively.

For the information on inventories pledged as collateral, as of June 30, 2021, December 31 and June 30, 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:

Associates Joint ventures	June 30, 2021 $ 451,901 244,653 $ 696,554	December 31, 2020 452,283 295,983 748,266	June 30, 2020
			453,909 323,799
			777,708

(i) Associates

Due to the fact that the Group does not have the obligation of assuming the excess losses, it ceased the recognition of the losses from the investment of Amida Trustlink Assets Management Co., Ltd. (Amida Trustlink Assets). For the three months and six months ended June 30, 2021 and 2020, the unrealized investment losses amounted to $73 thousand, $97 thousand, $144 thousand and $164 thousand, respectively; the accumulated unrealized investment losses, as of June 30, 2021 and 2020, amounted to $57,553 thousand and $57,211 thousand, respectively.

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

				June 30,		December 31,	December 31,	June 30,
				2021		2020		2020
Carrying amount of individually			$	451,901		452,283		453,909
insignificant	associates' equity
		For the	Three Months Ended June 30			For the Six Months		Ended June 30
		2021		2020		2021		2020
Attributable to the	Group:
Net loss		$	(4,300)		(4,788)		(8,565)	(9,431)
Other comprehensive			-	-		-		-
income
Comprehensive	income	$	(4,300)		(4,788)		(8,565)	(9,431)

(Continued)

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

(ii) Joint ventures

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

June 30, 2021 December 31, 2020 June 30, 2020 Carrying amount of individually insignificant joint ventures' equity $ 244,653 295,983 323,799 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 Attributable to the Group: Net loss $ (34,664) (32,632) (52,854) (58,883) Other comprehensive income - - - - Comprehensive income $ (34,664) (32,632) (52,854) (58,883)	June 30, 2021 December 31, 2020 June 30, 2020 Carrying amount of individually insignificant joint ventures' equity $ 244,653 295,983 323,799 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 Attributable to the Group: Net loss $ (34,664) (32,632) (52,854) (58,883) Other comprehensive income - - - - Comprehensive income $ (34,664) (32,632) (52,854) (58,883)	June 30, 2021 December 31, 2020 June 30, 2020 Carrying amount of individually insignificant joint ventures' equity $ 244,653 295,983 323,799 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 Attributable to the Group: Net loss $ (34,664) (32,632) (52,854) (58,883) Other comprehensive income - - - - Comprehensive income $ (34,664) (32,632) (52,854) (58,883)
	2021 (52,854) - (52,854)
		(58,883)

(iii) Pledge to secure

As of June 30, 2021, December 31 and June 30, 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 coutrol over the Pu Sheng Construction and a loss on disposal of investment amounting to $5,013 thousand.

(h) Property, plant and equipment

The cost and accumulated depreciation of the property, plant equipment of the Group for the six months ended June 30, 2021 and 2020 are as follows:

Cost: Balance on January 1, 2021 Additions Disposals Reclassification Influence from exchange rates Balance on June 30, 2021		Land		Buildings	Machinery 9,433,335 39,485 (42,027) 157,378 (134,748) 9,453,423	Office Equipment 110,764 4,290 (1,582) (4,471) (1,003) 107,998	Transportation Equipment 53,189 1,781 (1,630) 2,937 (767) 55,510	Leasehold Improvement 168,203 28,390 (48,261) - (2,552) 145,780	Other Equipment 700,247 5,255 (35,484) 6,594 (5,534)	Prepayments for Equipment and Construction in Progress	Total 18,231,631 539,174 (130,740) 26,334 (204,279)
				3,445,580 - (1,756) 677 (38,645) 3,405,856						1,202,077 459,973 - (136,781) (20,861) 1,504,408
									671,078		18,462,120

(Continued)

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

Buildings	Prepayments for Equipment and Construction in Progress	Total 17,417,169 351,858 (130,485) 11,365 (316,056)
3,361,551 771 - 4,588 (62,997) 3,303,913 1,448,672 50,744 (1,757) - (14,569) 1,483,090 1,327,569 51,578 - - (22,465) 1,356,682 1,996,908 1,922,766 2,033,982 1,947,231	543,517 190,940 - (126,574) (13,870) 594,013 - - - - - - - - - - - - 1,202,077 1,504,408 543,517 594,013
		17,333,851
		8,067,068 373,954 (124,482) - (108,534)
		8,208,006
		7,827,210 367,317 (125,591) - (173,904)
		7,895,032
		10,164,563
		10,254,114
		9,589,959
		9,438,819

(i) As of June 30, 2021, December 31 and June 30, 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.
(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	June 30, 2021 $ 44,299	December 31, 2020 44,299	June 30, 2020
			44,299

(Continued)

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

(i) Right-of-use assets

The cost and accumulated depreciation of the right-of-use assets, which includes land, buildings, machinery and transportation equipment rented by the Group, for the six months ended June 30, 2021 and 2020 are as follows:

Cost: Balance on January 1, 2021 Additions Reduction for expiration Influence from exchange rates Balance on June 30, 2021 Balance on January 1, 2020 Additions Reduction for expiration Influence from exchange rates Balance on June 30, 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 June 30, 2021 Balance on January 1, 2020 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on June 30, 2020 Carrying value: Balance on January 1, 2021 Balance on June 30, 2021 Balance on January 1, 2020 Balance on June 30, 2020	Land $ 1,007,888 - - (5,452) $ 1,002,436 $ 1,002,435 - - (9,348) $ 993,087 $ 155,174 11,747 - - (1,379) $ 165,542 $ 130,437 11,635 - - (2,178) $ 139,894 $ 852,714 $ 836,894 $ 871,998 $ 853,193	Buildings 2,394,673 1,316 (1,090) - 2,394,899 2,397,748 237 (2,075) (12) 2,395,898 1,158,342 80,390 400 (1,090) - 1,238,042 999,972 80,682 433 (1,701) (7) 1,079,379 1,236,331 1,156,857 1,397,776 1,316,519	Machinery 48,195 - - (629) 47,566 54,032 - (13,755) (1,083) 39,194 29,119 6,721 - - (452) 35,388 24,730 6,842 - (9,124) (563) 21,885 19,076 12,178 29,302 17,309	Transportation Equipment 17,318 9,276 (1,864) (16) 24,714 25,475 728 (3,764) (9) 22,430 12,171 2,792 - (1,864) (15) 13,084 15,221 3,694 - (3,764) (7) 15,144 5,147 11,630 10,254 7,286	Office Equipment 2,228 723 (889) (13) 2,049 2,240 430 (343) (7) 2,320 1,122 220 - (586) (7) 749 1,022 264 - (329) (3) 954 1,106 1,300 1,218 1,366	Other Equipment 122,262 - - - 122,262 122,607 196 (604) - 122,199 14,117 1,773 - - - 15,890 10,997 1,762 - (412) - 12,347 108,145 106,372 111,610 109,852	Total 3,592,564 11,315 (3,843) (6,110) 3,593,926 3,604,537 1,591 (20,541) (10,459) 3,575,128 1,370,045 103,643 400 (3,540) (1,853) 1,468,695 1,182,379 104,879 433 (15,330) (2,758) 1,269,603 2,222,519 2,125,231 2,422,158 2,305,525

(j) Investment property

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

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

(Continued)

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

The movements in the investment property is as follows:

Carrying value: Balance on January 1, 2021 Balance on June 30, 2021 Balance on January 1, 2020 Balance on June 30, 2020	Owned Property Land Buildings $ 593,697 97,459 $ 609,567 98,644 $ 545,783 93,790 $ 545,783 90,806	Total
	Land $ 593,697 $ 609,567 $ 545,783 $ 545,783
		691,156
		708,211
		639,573
		636,589

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

There were no significant additions, disposal, or recognition and reversal of impairment losses of investment properly for the six months ended June 30, 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 June 30, 2021, December 31 and June 30, 2020, the details of investment properties pledged as collateral, please refer to Note 8.

(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 June 30, 2021 Balance on January 1, 2020 Acquisitions Influence from exchange rates Balance on June 30, 2020	Goodwill $ 390,862 - - (6,412) $ 384,450 $ 393,630 - (7,905) $ 385,725	Patent 63,669 - - (1,017) 62,652 62,652 - (1,745) 60,907	Client Relationship 229,850 - - (3,673) 226,177 226,177 - (6,297) 219,880	Computer Software 32,878 928 383 (68) 34,121 32,427 499 (37) 32,889	Total 717,259 928 383 (11,170)
					707,400
					714,886 499 (15,984)
					699,401

(Continued)

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

Accumulated amortization and impairment loss: Balance on January 1, 2021 Amortization Influence from exchange rates Balance on June 30, 2021 Balance on January 1, 2020 Amortization Influence from exchange rates Balance on June 30, 2020 Carrying value: Balance on January 1, 2021 Balance on June 30, 2021 Balance on January 1, 2020 Balance on June 30, 2020	Goodwill $ - - - $ - $ - - - $ - $ 390,862 $ 384,450 $ 393,630 $ 385,725	Patent 63,669 - (1,017) 62,652 62,652 - (1,745) 60,907 - - - -	Client Relationship 229,850 - (3,673) 226,177 218,384 7,702 (6,206) 219,880 - - 7,793 -	Computer Software 22,978 2,366 (67) 25,277 17,960 2,631 (38) 20,553 9,900 8,844 14,467 12,336	Total 316,497 2,366 (4,757) 314,106 298,996 10,333 (7,989) 301,340 400,762 393,294 415,890 398,061

(l) Other non-current financial assets

Debt obligation receivable－The Splendor Hospitality International Co., Ltd. Debt obligation receivable－Chin Ling Steel Co., Ltd.－Non-guaranteed Less: Accumulated impairment－Debt obligation receivable－Chin Ling Steel Co., Ltd. Refundable deposits	June 30, 2021 $ 575,000 23,250 (23,250) 108,655 $ 683,655	December 31, 2020 575,000 23,250 (23,250) 109,059 684,059	June 30, 2020 575,000 23,250 (23,250) 104,748 679,748

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

(Continued)

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

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

June 30, 2021

				June 30, 2021
Underlying	Obligation Cost		Obligation Principal	Valuation Assessment Collateral According to the assessment of Zhonglian Real Estate Appraiser Joint Office, the valuation of mortgage is $7,674,024 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $1,857,012 thousand. The building of The Splendor Hospitality International (the 2nd security) December 31, 2020
The Splendor Hospitality International Underlying	$ 575,000		796,845
		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) June 30, 2020
The Splendor Hospitality International Underlying	$ 575,000		796,845
		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

(ii) As of June 30, 2021, December 31 and June 30, 2020, the cost and principal of debt obligation from Chin Ling Steel were $23,250 thousand and $118,561 thousand, respectively.

(Continued)

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

(m) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Notes and bills payable Total Unused credit limit Range of interest rates	June 30, 2021 $ 2,757,511 7,311,911 554,640 $ 10,624,062 $ 4,993,516 0.52%~3.72%	December 31, 2020 1,820,974 5,720,074 449,566 7,990,614 6,543,281 0.52%~2.25%	June 30, 2020
			2,440,417 7,157,241 544,498
			10,142,156
			5,163,880
			0.51%~2.25%

(i) Borrowing and repayment

For the six months ended June 30, 2021 and 2020, the Group obtained from short-term borrowings amounting to $5,565,901 thousand and $4,916,152 thousand with an interest rate of 0.52%～3.72% and 0.51%～2.25%; the repayment amounting to $3,012,230 thousand and $3,029,240 thousand, respectively. Please refer to Note 6(y) for details of the interest expense.

(ii) Collateral for bank borrowings

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

(n) Long-term borrowings

Unsecured bank borrowings Secured bank borrowings Less: Current portion Unamortized long-term borrowings costs Total Unused credit limit Interest rate range	June 30, 2021 $ 2,887,543 7,549,080 (1,007,366) (657) $ 9,428,600 $ 914,243 0.63%~3.70%	December 31, 2020 2,889,763 8,150,663 (100,240) (824) 10,939,362 341,821 0.63%~3.70%	June 30, 2020 2,234,937 7,356,344 (1,169,705) (974) 8,420,602 1,125,623 0.63%~4.21%

(i) Borrowing and repayment

For the six months ended June 30, 2021 and 2020, the Group obtained from long-term borrowings amounting to $2,696,202 thousand and $2,503,907 thousand with an interest rate of 0.90%～1.90% and 0.63%～2.00%; the repayment amounting to $3,251,392 thousand and $3,791,288 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

(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 June 30, 2021, due to the pre-sale method for real estate sales and multiple construction projects were carried out at the same time, and the payment was received one after another according to the construction progress, a contract liability of $3,884,387 thousand was incurred, which caused the Group to violate the borrowing contract conditions due to a debt ratio greater than 200%, but did not immediately constitute a default. However, specific improvement measures should be proposed to the management bank. If the above financial ratios and standards are met during the next review, then there will be no default.

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.

(o) Lease liabilities

The details of the lease liabilities are as follows:

Current Non-current	June 30, 2021 $ 180,389 $ 1,732,016	December 31, 2020 184,634 1,812,222	June 30, 2020
			185,769
			1,896,870

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

(Continued)

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

The amounts recognized in profit or loss are as follows:

For the Three Months Ended June 30 2021 2020 $ 7,611 6,802 $ 3,040 2,864 $ - 10	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 7,611 $ 3,040 $ -	2021 12,516 7,158 5	2020
		13,851
		7,287
		10

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

Total cash outflow for leases	For the Six Months Ended June 30	For the Six Months Ended June 30
	2021 $ 114,973	2020
		115,251

(i) Real estate leases

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

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

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

(ii) Other leases

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

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

(Continued)

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

(p) Provisions

Current: Warranties Subtotal Non-current: Financial guarantee contracts Legal Subtotal Total	June 30, 2021 $ - - 27,933 236,052 263,985 $ 263,985	December 31, 2020 186 186 33,269 236,052 269,321 269,507	June 30, 2020
			204
			204
			40,099 236,052
			276,151
			276,355

(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.

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	June 30, 2021 $ 16,644 8,049 2,483 - $ 27,176		December 31, 2020	June 30, 2020 7,583 2,730 - - 10,313
			17,020 12,355 5,265 355 34,995

(Continued)

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

For the three months and six months ended June 30, 2021 and 2020, rental revenues from investment properties amounted to $3,460 thousand, $2,979 thousand, $6,832 thousand and $5,961 thousand, respectively. The equipment and maintenance costs arising from the investment properties (recognized under "operating costs") are as follows:

Lease-out property	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
	2021 $ -	2020		2021 -	2020
		2			4

(r) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or no other material onetime events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2020 and 2019.

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

For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 543 576 1,079 1,169 98 106 199 206 237 283 475 560 95 92 193 179 $ 973 1,057 1,946 2,114	For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 543 576 1,079 1,169 98 106 199 206 237 283 475 560 95 92 193 179 $ 973 1,057 1,946 2,114	For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 543 576 1,079 1,169 98 106 199 206 237 283 475 560 95 92 193 179 $ 973 1,057 1,946 2,114
2021 $ 543 98 237 95 $ 973	2021 1,079 199 475 193 1,946	2020
		1,169 206 560 179
		2,114

(ii) Defined contribution plans

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

For the Three Months Ended June 30 2021 2020 $ 10,711 5,344 608 418 7,108 6,016 86 83 $ 18,513 11,861	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 10,711 608 7,108 86 $ 18,513	2021 21,398 1,253 14,603 173 37,427	2020
		13,399 930 11,274 166
		25,769

(Continued)

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

(iii) Short-term employee benefits

Paid leave and other liabilities	June 30, 2021 $ 13,366	December 31, 2020 17,034	June 30, 2020
			16,703

(s) Income tax

(i) Applicated legal tax rates of foreign subsidiaries: China: 15%~25%; Japan: 29.05%~33.79%; the USA: 21%.

(ii) The income tax expense are as follows:

For the Three Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
2020	2021 76,877 13,701 - (5,259) 85,319 (10,701) 74,618	2020 45,936 567 6,551 (27,764)
		25,290
		(10,048)
		15,242

(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.

(t) Share capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the six months ended June 30, 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 June 30, 2021, December 31 and June 30, 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.

(Continued)

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

(ii) Capital surplus

The components of the capital surplus are as follows:

The components of the capital surplus are as follows:
June 30, 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	June 30, 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.

1) Earnings distribution

The amount of cash dividends of appropriations of the Company’ s 2020 and 2019 earnings was based on the resolutions decided during the meetings of the Board of Directors held on March 30, 2021 and May 12, 2020, respectively. The appropriations of other earnings for 2020 and 2019 had been approved in the shareholders’ meeting on July 30, 2021 and June 22, 2020, respectively.

(Continued)

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

These earnings are appropriated as follows:

Common stock dividends per share Cash ) Other equity (net of tax) Balance on January 1, 2021 Profit attributable to non-controlling interests Exchange differences on foreign operations Unrealized (loss) gain on financial assets Changes in non-controlling interest Cash dividends paid to non-controlling interests Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance on June 30, 2021 Balance on January 1, 2020 Profit attributable to non-controlling interests Exchange differences on foreign operations Changes in non-controlling interest Cash dividends paid to non-controlling interests Balance on June 30, 2020	2020 2019 Allotment (NTD) Amount Allotment (NTD) Amount $ 1.03 387,406 0.92 346,727 Exchange Differences on Translation of Foreign Financial Statements Unrealized Gains (Losses) from Financial Assets Measured at FVOCI Non-controlling Interest Total $ 32,198 93,833 3,975,678 4,101,709 - - 74,811 74,811 (113,526) - (30,302) (143,828) - (12,202) 13 (12,189) - - (12,927) (12,927) - - (193,725) (193,725) - (3,106) - (3,106) $ (81,328) 78,525 3,813,548 3,810,745 $ (143,749) 87,640 3,852,894 3,796,785 - - 11,187 11,187 (227,358) - (49,634) (276,992) - - 11,414 11,414 - - (127,925) (127,925) $ (371,107) 87,640 3,697,936 3,414,469	2020 2019 Allotment (NTD) Amount Allotment (NTD) Amount $ 1.03 387,406 0.92 346,727 Exchange Differences on Translation of Foreign Financial Statements Unrealized Gains (Losses) from Financial Assets Measured at FVOCI Non-controlling Interest Total $ 32,198 93,833 3,975,678 4,101,709 - - 74,811 74,811 (113,526) - (30,302) (143,828) - (12,202) 13 (12,189) - - (12,927) (12,927) - - (193,725) (193,725) - (3,106) - (3,106) $ (81,328) 78,525 3,813,548 3,810,745 $ (143,749) 87,640 3,852,894 3,796,785 - - 11,187 11,187 (227,358) - (49,634) (276,992) - - 11,414 11,414 - - (127,925) (127,925) $ (371,107) 87,640 3,697,936 3,414,469	2020 2019 Allotment (NTD) Amount Allotment (NTD) Amount $ 1.03 387,406 0.92 346,727 Exchange Differences on Translation of Foreign Financial Statements Unrealized Gains (Losses) from Financial Assets Measured at FVOCI Non-controlling Interest Total $ 32,198 93,833 3,975,678 4,101,709 - - 74,811 74,811 (113,526) - (30,302) (143,828) - (12,202) 13 (12,189) - - (12,927) (12,927) - - (193,725) (193,725) - (3,106) - (3,106) $ (81,328) 78,525 3,813,548 3,810,745 $ (143,749) 87,640 3,852,894 3,796,785 - - 11,187 11,187 (227,358) - (49,634) (276,992) - - 11,414 11,414 - - (127,925) (127,925) $ (371,107) 87,640 3,697,936 3,414,469
	Allotment (NTD) $ 1.03 Exchange Differences on Translation of Foreign Financial Statements $ 32,198 - (113,526) - - - - $ (81,328) $ (143,749) - (227,358) - - $ (371,107)
	$
			3,810,745
			3,796,785 11,187 (276,992) 11,414 (127,925)
			3,414,469

(iv) Other equity (net of tax)

(u) Earnings per share

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

For the Three Months Ended June 30 2021 2020 $ 57,806 70,308 376,122 383,965 $ 0.15 0.18	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 57,806 376,122 $ 0.15	2021 231,315 376,122 0.62	2020 12,802
		383,965
		0.03

(Continued)

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

For the Three Months Ended June 30 2021 2020 $ 57,806 70,308 376,122 383,965 44 7 376,166 383,972 $ 0.15 0.18	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 57,806 376,122 44 376,166 $ 0.15	2021 231,315 376,122 457 376,579 0.61	2020 12,802
		383,965 339
		384,304
		0.03

(v) Revenue from contracts with customers

(i) Disaggregation of revenue

For the Three Months	For the Three Months	Ended June 30,	2021
Metal Manufacturing Segment $ 211,494 435,283 405,058 1,589,071 114,852 164,941 96,330 $ 3,017,029 $ 3,006,329 - - 10,700 $ 3,017,029	Real Estate Development Segment	Lifestyle Hospitality Segment 96,203 - - - - - - 96,203 - - 57,554 38,649 96,203	Total
	195,571 - - - - - -		503,268 435,283 405,058 1,589,071 114,852 164,941 96,330
	195,571		3,308,803
	- 187,898 - 7,673		3,006,329 187,898 57,554 57,022
	195,571		3,308,803

(Continued)

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

For the Three Months	For the Three Months	Ended June 30,	2020
Metal Manufacturing Segment Real Estate Development Segment Lifestyle Hospitality Segment Total $ 123,629 18,947 135,857 278,433 250,594 - - 250,594 230,668 - - 230,668 1,428,564 - - 1,428,564 54,126 - - 54,126 9,716 - - 9,716 89,844 - - 89,844 $ 2,187,141 18,947 135,857 2,341,945 $ 2,175,856 - - 2,175,856 - 15,488 - 15,488 - - 81,473 81,473 11,285 3,459 54,384 69,128 $ 2,187,141 18,947 135,857 2,341,945 For the Six Months Ended June 30, 2021	Real Estate Development Segment		Total
	18,947 - - - - - -		278,433 250,594 230,668 1,428,564 54,126 9,716 89,844
	18,947		2,341,945
	- 15,488 - 3,459		2,175,856 15,488 81,473 69,128
	18,947		2,341,945
Metal Manufacturing Segment $ 376,595 878,111 810,584 3,250,224 208,720 354,998 198,591 $ 6,077,823	Real Estate Development Segment	Lifestyle Hospitality Segment 264,012 - - - - - - 264,012	Total
	576,681 - - - - - -		1,217,288 878,111 810,584 3,250,224 208,720 354,998 198,591
	576,681		6,918,516

(Continued)

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

For the Six Months Ended June 30, 2021	For the Six Months Ended June 30, 2021	For the Six Months Ended June 30, 2021	For the Six Months Ended June 30, 2021
Metal Manufacturing Segment Real Estate Development Segment Lifestyle Hospitality Segment Total $ 6,051,517 - - 6,051,517 - 569,008 - 569,008 - - 150,605 150,605 26,306 7,673 113,407 147,386 $ 6,077,823 576,681 264,012 6,918,516 For the Six Months Ended June 30, 2020			Total
			6,051,517 569,008 150,605 147,386
			6,918,516
Metal Manufacturing Segment $ 231,037 757,292 579,985 2,414,617 117,594 16,587 184,855 $ 4,301,967 $ 4,281,017 - - 20,950 $ 4,301,967	Real Estate Development Segment 22,410 - - - - - - 22,410 - 15,488 - 6,922 22,410	Lifestyle Hospitality Segment 283,751 - - - - - - 283,751 - - 165,053 118,698 283,751	Total
			537,198 757,292 579,985 2,414,617 117,594 16,587 184,855
			4,608,128
			4,281,017 15,488 165,053 146,570
			4,608,128

(ii) Contract balances

Notes and accounts receivable Less: Loss allowance Total	June 30, 2021 $ 3,890,846 (2,972) $ 3,887,874	December 31, 2020 3,821,230 (3,120) 3,818,110	June 30, 2020 3,264,729 (17,517) 3,247,212

(Continued)

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

Contract assets Contract liabilities–Advance real estate receipts Contract liabilities–Advance receipts	June 30, 2021 $ - $ 3,884,387 $ 48,797	December 31, 2020 - 2,443,869 49,115	June 30, 2020
			-
			1,847,001
			47,099

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

The amount of revenue recognized for the six months ended June 30, 2021 and 2020, that were included in the contract liabilities balance at the beginning of the period were $75,979 and $0 thousand, respectively.

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 and six months ended June 30, 2021 and 2020, appropriated employees’ compensation by $1,485 thousand, $200 thousand, $6,869 thousand and $200 thousand, respectively, and appropriated remuneration of directors by $1,326 thousand, $193 thousand, $6,133 thousand and $193 thousand, respectively, which were estimated on the basis of the Company’s net profit before tax, excluding employees’ compensation and the remuneration of directors of each period, then multiplied by the percentage of remuneration of employees and directors as specified in the Company’s Articles of Incorporation. Such amounts were recognized as operating cost or operating expense for the period. The number of shares to be distributed were calculated based on the closing price of the Company’ s ordinary shares, one day prior to Board of Directors meeting. Management is expecting that the differences, if any, between the actual distributed amounts and estimated amounts will be treated as changes in accounting estimates and charged to profit or loss.

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.

(Continued)

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

(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 June 30 2021 2020 $ - 1,885	For the Six Months Ended June 30 2021 2020 - 3,861	For the Six Months Ended June 30 2021 2020 - 3,861
	2021 $ -		2020 3,861

(y) Non-operating income and expenses
(i) Interest income

The information on interest income is listed as follows:

For the Three Months Ended June 30 2021 2020 $ 8,101 12,938 3,467 3,233 $ 11,568 16,171	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 8,101 3,467 $ 11,568	2021 22,118 6,914 29,032	2020
		20,771 6,574
		27,345

(ii) Other income

The information on other income is listed as follows:

For the Three Months Ended June 30 2021 2020 $ 13,512 27,590 4,647 3,841 24,452 24,029 $ 42,611 55,460	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 13,512 4,647 24,452 $ 42,611	2021 13,512 9,934 41,326 64,772	2020
		27,590 7,606 24,932
		60,128

(Continued)

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

(iii) Other gains and losses

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

For the Three Months Ended June 30 2021 2020 $ (3,309) (693) (8,634) (6,247) - (1,760) - - (2,180) (24,666) $ (14,123) (33,366)	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ (3,309) (8,634) - - (2,180) $ (14,123)	2021 (3,532) (13,730) - (5,013) (2,627) (24,902)	2020
		5,496 18,567 (6,000) - (25,080)
		(7,017)

(iv) Finance costs

The information on interest costs is listed as follows:

For the Three Months Ended June 30 2021 2020 $ 55,626 60,027 7,611 6,802 426 425 $ 63,663 67,254	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 55,626 7,611 426 $ 63,663	2021 105,790 12,516 851 119,157	2020
		130,767 13,851 867
		145,485

For the three months and six months ended June 30, 2021 and 2020, the capitalized interest costs amounted to $12,097 thousand, $11,689 thousand, $26,349 thousand and $21,713 thousand, respectively.

(z) Financial instruments

Except for the content 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.

(Continued)

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

(i) Credit risk

1) Credit risk exposure

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

2) Concentration of credit risk

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

3) Credit risks of receivables and debt securities

For the information regarding credit risk exposure of notes and accounts receivables, please refer to Note 6(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 six months ended June 30, 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 June 30, 2021 Non-derivative financial liabilities Bank borrowings $ 21,452,493 Lease liabilities 2,150,583 Notes and accounts payables (including related parties) 2,754,607 Other payables (including related parties) 2,373,523 $ 28,731,206 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	Within 6 Months 4,772,997 103,251 2,754,607 2,373,523 10,004,378 2,626,081 107,124 2,663,292 1,452,641 6,849,138	6-12 Months 2,712,075 100,246 - - 2,812,321 1,895,083 101,805 - - 1,996,888	1-2 Years 9,343,814 197,176 - - 9,540,990 8,906,212 195,978 - - 9,102,190	2-5 Years 4,596,211 602,039 - - 5,198,250 6,101,100 594,921 - - 6,696,021	Over 5 Years
					27,396 1,147,871 - -
					1,175,267
					30,673 1,247,457 - -
					1,278,130

(Continued)

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

Contractual Cash Flow June 30, 2020 Non-derivative financial liabilities Bank borrowings $ 20,174,586 Lease liabilities 2,345,813 Notes and accounts payables (including related parties) 20,149,462 Other payables (including related parties) 1,221,850 $ 43,891,711	Within 6 Months 7,794,367 106,086 20,149,462 1,221,850 29,271,765	6-12 Months 1,525,967 105,170 - - 1,631,137	1-2 Years 5,912,622 198,588 - - 6,111,210	2-5 Years 4,895,814 588,927 - - 5,484,741	Over 5 Years
					45,816 1,347,042 - -
					1,392,858

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:

June 30, 2021 Foreign Currency Exchange Rate NTD Financial assets Monetary items USD:NTD $ 21,356 27.86 594,973 USD:CNY 125,991 6.46 3,510,120 USD:JPY 1,379 110.51 38,432 EUR:NTD 1,671 33.15 55,394 EUR:CNY 1,793 7.69 59,439 JPY:NTD 71,386 0.25 17,996 JPY:CNY 70,552 0.06 17,786 HKD:USD 3,642 0.13 13,076 Financial liabilities Monetary items USD:NTD 74 27.86 2,062 USD:CNY 150,238 6.46 4,185,637 EUR:CNY 1,442 7.69 47,792 HKD:USD 335,040 0.13 1,202,794 JPY:CNY 61,442 0.058 15,490	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 17,626 0.063 4,870	June 30, 2020	June 30, 2020
	Foreign Currency 21,890 116,751 1,063 408 845 54,520 50,832 6,370 63 138,325 1,655 335,088 17,626	Foreign Currency 30,979 110,901 925 742 913 101,717 35,097 9,461 1,029 114,538 15,275 335,040 9,731	Exchange Rate NTD 29.63 917,912 7.07 3,285,986 107.71 27,394 33.27 24,677 7.94 30,370 0.2751 27,982 0.07 9,655 0.13 36,140 29.63 30,482 7.07 3,393,774 7.94 508,189 0.13 1,279,853 0.066 2,677

(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 June 30, 2021 and 2020 would have increased (decreased) the after-tax net income for the three months and six months ended June 30, 2021 and 2020 by $(2,154) thousand, $(1,321) thousand, $(4,586) thousand and $(3,419) thousand, respectively. The analysis assumes that all other variables remain constant and was performed on the same basis for both periods.

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. For the three months and six months ended June 30, 2021 and 2020, the foreign exchange gains (losses), including both realized and unrealized, amounted to $(8,634) thousand, $(6,247) thousand, $(13,730) thousand and $18,567 thousand, respectively.

(iv) Interest rate risk

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

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

If the interest rate increases or decreases by 1% the Group’s net income will increase /decrease by $32,674 thousand, $30,305 thousand, $54,432 thousand and $60,396 thousand for the three months and six months ended June 30, 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 Six Months Ended June 30 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) $ 21,656 - 20,807 4,544 $ (21,656) - (20,807) (4,544)	For the Six Months Ended June 30 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) $ 21,656 - 20,807 4,544 $ (21,656) - (20,807) (4,544)
	2021 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 21,656 - $ (21,656) -
	Other Comprehensive Income (net of tax) $ 21,656 $ (21,656)	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:

	June 30, 2021	June 30, 2021	June 30, 2021
Book Value $ 216,561 $ 10,405,518 $ 28,121,053		Fair Value
	Level 1 Level 2 Level 3 35,297 - 181,264 - - - - - - December 31, 2020			Total
				216,561
				-
				-

Book Value $ 257,587 $ 10,372,793 $ 25,159,952		Fair Value
	Level 1 Level 2 62,763 - - - - - June 30, 2020		Level 3 194,824 - -	Total
				257,587
				-
				-

Book Value $ 45,440 $ 208,065 $ 8,989,928 $ 25,073,036		Fair Value
	Level 1 45,440 - - -	Level 2 - - - -	Level 3 - 208,065 - -	Total
				45,440
				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 six months ended June 30, 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	$	194,824
Total gains or losses
Recognized as other comprehensive income		(13,560)
Balance on June 30, 2021	$	181,264
Balance on January 1, 2020	$	216,065
Capital reduction		(8,000)
Balance on June 30, 2020	$	208,065
		(Continued)

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

The total gains or losses is listed under “ unrealized gain (loss) on financial assets at FVOCI” . The information regarding assets held as of June 30, 2021 and 2020 is as follows:

Total gains or losses Recognized as other comprehensive income (which is listed under "unrealized gain (loss) on financial assets of FVOCI")	For the Three Months Ended June 30 2021 2020 $ (13,560) -	For the Six Months Ended June 30	For the Six Months Ended June 30
	2021 $ (13,560)	2021 (13,560)	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 June 30, 2021,December 31 and June 30, 2020 were $18~26,213 thousand, $18~29,388 thousand, and $0~29,388 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 June 30, 2021,December 31 and June 30, 2020, were 3.75%,4.70% and 4.99%, respectively.) ‧Discounting rate without market liquidity (As of June 30, 2021, December 31 and June 30, 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:

June 30, 2021 Financial assets at FVOCI Equity investments without an active market December 31, 2020 Financial assets at FVOCI Equity investments without an active market June 30, 2020 Financial assets at FVOCI Equity investments without an active market	Inputs % 3.75 % 4.70 % 4.99	Fluctuation in Inputs 1% 1% 1%	Other Comprehensive Income Favorable Unfavorable 6,779 (6,437) 6,755 (6,421) 7,185 (6,827)

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.

(Continued)

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

(ab) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 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 six months ended June 30, 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 771,717 Cash flows 23,888	Non-cash changes Reclassification (30,736) Non-cash changes Reclassification (25,326)	June 30, 2021
				1,648,775
				June 30, 2020
				903,750

(7) Related-party transactions:

(a) The ultimate parent company

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

(b) Names and relationship with related parties

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

in the consolidated financial statements.
Name of Related Party	Relationship with the Group
The Splendor Hospitality International Co., Ltd.	Joint ventures
(The Splendor Hospitality)
CMAAN Health Co., Ltd. (CMAAN Health)	Joint ventures
Hua-Pu Development Co., Ltd. (Hua-Pu Development)	Joint venture
Amida Trustlink Assets Management Co., Ltd.	Associates
(Amida Trustlink Assets)
Keng-Hsin Urban Renewal Co., Ltd.	Associate of subsidiaries
(Keng-Hsin Urban Renewal)
ADVANCISION (CAYMAN) Industries Co., Ltd.	Associate of subsidiaries
(ADVANCISION (CAYMAN))
Beyond Fitness Co., Ltd. (Beyond Fitness)	Associate of subsidiaries

(Continued)

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

Relationship with the Group Subsidiaries of subsidiaries' associates

Name of Related Party Relationship with the Group Fuzhou Aprec Mechanical and Electrical Co., Ltd. Subsidiaries of subsidiaries' associates (Fuzhou Aprec) Advancision Corporation (Advancision) Subsidiaries of subsidiaries' associates Chain-Yuan Investment Co., Ltd. (Chain-Yuan Investment) Other related parties San Lien Technology Corp. (San Lien Technology) Other related parties Kemitek Industrial Corp. (Kemitek Industrial) Other related parties CMP PUJEN Foundation for Arts and Culture (Foundation) Other related parties Pu Yuan Construction Co., Ltd. (Pu Yuan Construction) Other related parties LEESCO Development Co., Ltd. (LEESCO Development) Other related parties Hao Bao Investment Co., Ltd. (Hao Bao Investment) Other related parties Rui Hua Investment Co., Ltd. (Rui Hua Investment) Other related parties Gee Lien Resource Development Corp. (Gee Lien Resource) Other related parties Yi-Shi Investment Corporation (Yi-Shi) Other related parties Mr. Ming Shiann, Ho Other related parties Mr. Ting Fung, Lin Key Management

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

	S	ales	nd Accounts Rec	eivables
For the Three June	Months Ended 30 2020 844 6 29 879	For the Six M June	December 31, 2020 797 - 182 979	June 30, 2020
2021		2021 4,750 342 205 5,297
$ 1,037 - 119 $ 1,156				365 - 5
				370

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	nce real estate receipts	nce real estate receipts
For the Three June	Months Ended 30 2020 -	For the Six Mo June	December 31, 2020 9,300	June 30, 2020
2021		2021 -
$ -				-

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

(Continued)

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

(ii) Purchases from related parties

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

Purchases For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 31,754 12,261 64,135 26,943 - 20 - 20 - 1,311 - 2,974 $ 31,754 13,592 64,135 29,937	Notes and Accounts Payable	Notes and Accounts Payable	Notes and Accounts Payable
For the Three Months Ended June 30 2021 2020 $ 31,754 12,261 - 20 - 1,311 $ 31,754 13,592	June 30, 2021 28,663 - 695 29,358	December 31, 2020 26,026 - 641 26,667	June 30, 2020
2021
$ 31,754 - - $ 31,754			22,244 - 1,523
			23,767

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

(iii) Leases

1) Rental expenses

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

Rental Expenses	Rental Expenses	Rental Expenses
For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 30 - 60 - 608 578 1,216 1,156 149 15 276 30 $ 787 593 1,552 1,186 Guarantee Deposit Paid (Recognized under other current and non-current financial assets)
	December 31, 2020 443	June 30, 2020
		443

(Continued)

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

2) Rental revenues

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

	Rental Revenues	Rental Revenues	Rental Revenues	Rental Revenues
			For the Six Months Ended June 30
				2020
				152 642
				794
	June 30, 2021 300	December 31, 2020 300
$

(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 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 75 76 150 151 1,396 1,985 2,847 3,825 $ 1,471 2,061 2,997 3,976	Service Revenues For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 75 76 150 151 1,396 1,985 2,847 3,825 $ 1,471 2,061 2,997 3,976
	For the Three Months Ended June 30 2021 2020 $ 75 76 1,396 1,985 $ 1,471 2,061
	2021 $ 75 1,396 $ 1,471	2020
		151 3,825
		3,976

(v) Non-performing receivables

	Total Claims
June 30, 2021 $ 796,845	December 31, 2020 796,845 Costs of Claims	June 30, 2020
		796,845

	December 31, 2020 575,000	June 30, 2020
		575,000

(Continued)

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

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

(vi) Guarantees and endorsements

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

Borrowing Limits	Borrowing Limits
June 30, 2021 December 31, 2020 June 30, 2020 $ 2,000,000 1,900,000 2,100,000 45,680 45,680 45,680 $ 2,045,680 1,945,680 2,145,680 Actual Usage Amount		June 30, 2020
		2,100,000 45,680
		2,145,680
	December 31, 2020 1,620,000 45,680 1,665,680	June 30, 2020
		1,645,000 45,680
		1,690,680

(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 June 30 2021 2020 $ 172 654	For the Six Months Ended June 30	For the Six Months Ended June 30
	2021 $ 172	2021 172	2020
			1,488

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

Other related parties	June 30, 2021 $ 336	December 31, 2020 318	June 30, 2020
			207

(Continued)

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

(ix) Other transactions

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

Donation For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 2,560 - 2,560 15	Donation For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 2,560 - 2,560 15	Donation For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 2,560 - 2,560 15
For the Three Months Ended June 30 2021 2020 $ 2,560 -
2021 $ 2,560	2021 2,560	2020
		15

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

	Management Service Expenses	Management Service Expenses
	For the Six Months Ended June 30
2021 $ -	2021 -	2020
		3,500

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

	Other Expenses	Other Expenses
	For the Six Months Ended June 30
2021 $ 1 9 42 $ 52	2021 1 9 42 52	2020
		- - 65
		65

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

Interest Revenues	Interest Revenues	Interest Revenues
For the Three Months Ended June 30 2021 2020 $ 3,383 3,153 83 80 $ 3,466 3,233	For the Six Months Ended June 30
2021 $ 3,383 83 $ 3,466	2021 6,748 165 6,913	2020
		6,413 161
		6,574

(Continued)

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

5) Other receivables and advance payments from related parties

Associates: Keng-Hsin Urban Renewal Others Joint ventures Other related parties Key management	Other Receivables (including advance payments) June 30, 2021 December 31, 2020 June 30, 2020 $ 45,836 35,114 37,542 373 95 104 230 77 90 16 122 4,172 - - 3 $ 46,455 35,408 41,911	Other Receivables (including advance payments) June 30, 2021 December 31, 2020 June 30, 2020 $ 45,836 35,114 37,542 373 95 104 230 77 90 16 122 4,172 - - 3 $ 46,455 35,408 41,911	Other Receivables (including advance payments) June 30, 2021 December 31, 2020 June 30, 2020 $ 45,836 35,114 37,542 373 95 104 230 77 90 16 122 4,172 - - 3 $ 46,455 35,408 41,911
		December 31, 2020 35,114 95 77 122 - 35,408	June 30, 2020 37,542 104 90 4,172 3 41,911

6) Other payables and advance receipts from related parties

Other Payables (including advance receipts)	Other Payables (including advance receipts)	Other Payables (including advance receipts)
June 30, 2021 $ 197,262 42 39 39 - $ 197,382	December 31, 2020 8,384 - 2,514 25 85 11,008	June 30, 2020
		7,701 - 12 492 -
		8,205

(d) Key management transactions

The compensation of key management is as follows:

For the Three Months Ended June 30 2021 2020 $ 9,503 1,905 469 (13) $ 9,972 1,892	For the Six Months Ended June 30	For the Six Months Ended June 30
2021 $ 9,503 469 $ 9,972	2021 56,035 946 56,981	2020
		35,602 401
		36,003

(Continued)

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

(8) Pledged assets

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

Pledged Assets	Object	June 30, 2021 $ 1,424,638 311,786 636,018 7,046,459 5,788,812 3,586,849 67,279 979,019 $ 19,840,860	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	June 30, 2020 1,466,374 327,630 596,137 5,841,338 5,198,239 3,836,643 14,234 655,458
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
				17,936,053

(9) Significant commitments and contingencies

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

are as follows:
Unused standby letters of credit	June 30, 2021 $ 1,288	December 31, 2020 -	June 30, 2020
			-

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

Total contract price Total amounts paid under contracts (Note)	June 30, 2021 $ 12,363,682 $ 5,471,020	December 31, 2020 11,020,485 3,787,659	June 30, 2020
			9,331,246
			2,053,495

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

(Continued)

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

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

Total contract price Total amounts received under contracts (recognized under current contract liabilities)	June 30, 2021 $ 18,761,440 $ 3,550,373	December 31, 2020 15,265,856 2,434,499	June 30, 2020
			11,304,999
			1,841,412

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

June 30, 2021 December 31, 2020 Total contract price $ 200,944 200,944 Total amounts paid under contracts (recognized under prepayments) $ 116,570 116,570 The Group’s security deposits paid to landlords for joint construction projects June 30, 2021 December 31, 2020 Security deposits of joint construction projects (recognized under other current and non-current financial assets) $ 380,925 352,223 The Group’s security deposits for renting real estates is as follows: June 30, 2021 December 31, 2020 Security deposits (recognized under other current and non-current financial assets) $ 99,289 97,289	June 30, 2020
	200,944
	116,570
	is as follows: June 30, 2020
	330,842
	June 30, 2020
	97,289

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

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

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

Total contract price Total amounts paid under contracts (recognized under inventories— prepayments for land)	June 30, 2021 $ 283,842 $ 166,995	December 31, 2020 283,842 166,995	June 30, 2020
			279,342
			121,229

(Continued)

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

(viii) The Group and The Presbyterian Church in Taiwan entered into an real estate leasing contract, with the contract term of 40 years, commencing the day after the signing date, September 30, 2016. For the development of the leasing real estates, the Group agreed to pay development royalty amounting to $126,000 thousand. As of June 30, 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 June 30, 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 June 30	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30
		2021			2020
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	175,889	138,330	314,219	155,288	136,396	291,684
Labor and health insurance	14,805	12,055	26,860	7,996	7,878	15,874
Pension	11,254	8,232	19,486	5,920	6,998	12,918
Others	17,161	10,744	27,905	16,099	9,734	25,833
Depreciation	150,688	73,751	224,439	160,751	72,567	233,318
Amortization	374	764	1,138	466	4,658	5,124

By function By item		For the Six Months Ended June 30
		2021		2020
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	351,926	294,544	646,470	299,337	271,537	570,874
Labor and health insurance	29,475	24,078	53,553	19,358	17,912	37,270
Pension	22,477	16,896	39,373	14,568	13,315	27,883
Others	33,936	22,725	56,661	29,815	19,302	49,117
Depreciation	331,964	147,170	479,134	331,308	143,872	475,180
Amortization	813	1,553	2,366	925	9,408	10,333

(Continued)

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

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions for the six months ended June 30, 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	53,000	53,000	1.15%	2	-	Operation requirements	-		-	3,522,265	4,696,353
1	Tianjin CMT	Suzhou CMB	Accounts receivable due from related parties	Yes	219,000	215,500	215,500	0.75%	2	-	Operation requirements	-		-	320,650	427,533
1	Tianjin CMT	CMW (Tianjin)	Accounts receivable due from related parties	Yes	197,100	-	-	0.75%	2	-	Operation requirements	-		-	320,650	427,533
1	Tianjin CMT	CMH	Accounts receivable due from related parties	Yes	215,500	215,500	215,500	0.75%	2	-	Operation requirements	-		-	320,650	427,533
2	Suzhou CMS	CMH	Accounts receivable due from related parties	Yes	437,000	431,000	431,000	0.75%	2	-	Operation requirements	-		-	1,182,722	1,576,963

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	4,696,353	220,000	110,000	-	-	% 0.94	5,870,442	Y	N	N
0	The Company	The Hotel National	1	4,696,353	100,000	50,000	50,000	-	% 0.43	5,870,442	Y	N	N
0	The Company	Shangrila Tourism	1	4,696,353	902,500	702,500	448,500	-	% 5.98	5,870,442	Y	N	N
0	The Company	The Splendor Hospitality	2	4,696,353	2,150,000	2,000,000	1,640,000	-	% 17.03	5,870,442	N	N	N
0	The Company	CMAAN Health	2	4,696,353	45,680	45,680	45,680	-	% 0.39	5,870,442	N	N	N
1	CMAI N.A.	Pilot	4	50,626	47,228	46,103	44,343	-	% 91.07	50,626	N	N	N
2	CMI	UEA	3	3,927,600	1,229,597	1,202,794	1,202,794	-	% 12.25	4,909,500	N	N	N

(Continued)

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

Note 1: 1.The Company held directly or indirectly more than 50% of the shares with voting rights.

2.Due to the joint investment relationship, all of the shareholders of the Group endorse the company in accordance with their investment ratio.
3.The company held directly or indirectly more than 50% of the shares with voting rights.
4.The company held directly or indirectly more than 90% of the shares with voting rights.

Note 2: Balance of guarantees and endorsements as of the reporting date was within the credit limit approved by the Board of Directors.

Note 3: The following three situations are filled in Y: the endorsement of the subsidiary by the Company; the endorsement of the Company by the subsidiary and the endorsement to the company located in Mainland China.

Note 4: The guarantor’s total amount available for guarantee and endorsement shall not exceed the percentage mentioned below of its net worth: The Company 40%, 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 June 30, 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	118,425	% 3.12	118,425
The Company	YUHUA Venture Capital Co., Ltd.	-	Non-current financial assets at FVOCI	73,173	485	% 1.25	485
The Company	FUHUA Venture Capital Co., Ltd.	-	Non-current financial assets at FVOCI	51,975	1,107	% 1.67	1,107
The Company	GUANGYUAN Investment Co., Ltd.	-	Non-current financial assets at FVOCI	3,750,000	32,923	% 3.91	32,923
The Company	DEVELOPMENT Venture Capital Co., Ltd.	The Company is the legal person	Non-current financial assets at FVOCI	4,400,000	28,324	% 4.00	28,324
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	573,000	35,297	% 0.14	35,297
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)

Name of Company	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount	Percentage of Total Purchases/Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/Accounts Receivable (Payable)
uzhou CMS	CMI	Subsidiaries	Sale	697,806	% 40.30	180 days	-	-	1,515,233	72.26%
MW (Tianjin)	CMW (C.I.)	Subsidiaries	Sale	779,966	% 36.67	180 days	-	-	1,841,791	60.55%

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 185,771	-	-	-	-	-
CMW (C.I.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 2,477,332	-	-	-	CNY 26,000,000	-
CMP (H.K.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 347,958	-	-	-	-	-
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Accounts receivable due from related parties 1,841,791	0.90	-	-	CNY 28,415,277	-
Tianjin CMT	CMI	Subsidiaries	Accounts receivable due from related parties 262,972	-	-	-	-	-
Tianjin CMT	Suzhou CMB	Affiliates	Accounts receivable due from related parties, other 215,500	-	-	-	-	-
Tianjin CMT	CMH	Affiliates	Accounts receivable due from related parties, other 215,500	-	-		-	-
Suzhou CMS	CMI	Subsidiaries	Accounts receivable due from related parties 1,515,233	0.98	-	-	-	-
Suzhou CMS	CMH	Affiliates	Accounts receivable due from related parties, other 431,000	-	-		-	-
Suzhou CMB	CMI	Subsidiaries	Accounts receivable due from related parties 143,953	1.14	-		-	-
PUJEN	CHINGENG Land Development	Parent company	Accounts receivable due from relatedparties,other 197,263	-	-		-	-

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	21,791	60~90 days	0.31%
0	China Metal Products	CMJ	1	Operating revenue	12,864	90 days	0.19%
1	CMW (Tianjin)	CMW (C.I.)	2	Operating revenue	799,966	180 days	11.56%
3	Suzhou CMS	CMI	2	Operating revenue	697,807	180 days	10.09%
4	Suzhou CMB	Suzhou CMS	3	Operating revenue	42,818	90 days	0.62%
4	Suzhou CMB	CMI	2	Operating revenue	67,250	180 days	0.97%
4	Suzhou CMB	CMB(H.K.)	2	Operating revenue	18,567	180 days	0.27%
4	Suzhou CMB	Qingdao Sourcing Specialists	3	Operating revenue	13,158	90 days	0.19%
5	National Management	China Metal Products	2	Operating revenue	29,300	OA25 days	0.42%
7	CMW(C.I.)	CMAI	3	Operating revenue	13,600	90 days	0.20%
14	CMH	Suzhou CMB	3	Operating revenue	23,144	90 days	0.33%
12	CMJ	CMI	3	Operating revenue	10,665	90~120 days	0.15%
13	CMAI(N.A.)	CMAI	2	Operating revenue	13,924	90~120 days	0.20%
0	China Metal Products	Atrans Precision	1	Accounts receivable due from related parties	16,474	60~90 days	0.03%
1	CMW(Tianjin)	CMW(C.I.)	2	Accounts receivable due from related parties	1,841,791	180 days	3.78%
2	Tanjin CMT	CMI	2	Accounts receivable due from related parties	262,972	180 days	0.54%
2	Tanjin CMT	CMW(Tianjin)	3	Accounts receivable due from related parties	42,864	90 days	0.09%
14	CMH	Suzhou CMB	3	Accounts receivable due from related parties	25,912	90 days	0.05%
3	Suzhou CMS	CMI	2	Accounts receivable due from related parties	1,515,233	180 days	3.11%
4	Suzhou CMB	CMB (H.K.)	2	Accounts receivable due from related parties	29,590	180 days	0.06%

(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)
4	Suzhou CMB	CMI	2	Accounts receivable due from related parties	143,953	180 days	0.30%
4	Suzhou CMB	Suzhou CMS	3	Accounts receivable due from related parties	35,166	90 days	0.07%
7	CMW(C.I.)	CMAI	3	Accounts receivable due from related parties	24,725	90 days	0.05%
0	China Metal Products	The Hotel National	1	Other receivables due from related parties	53,035	-	0.11%
0	China Metal Products	Sunflower Investment	1	Other receivables due from related parties	97,159	-	0.20%
2	Tianjin CMT	Suzhou CMS	3	Other receivables due from related parties	11,229	-	0.02%
2	Tianjin CMT	Suzhou CMB	3	Other receivables due from related parties	215,500	-	0.44%
2	Tianjin CMT	CMH	3	Other receivables due from related parties	215,500	-	0.44%
3	Suzhou CMS	CMH	3	Other receivables due from related parties	431,000	-	0.88%
6	CMI	CMB(H.K.)	1	Other receivables due from related parties	185,771	-	0.38%
7	CMW(C.I.)	CMW(Tianjin)	1	Other receivables due from related parties	45,830	-	0.09%
7	CMW(C.I.)	CMI	2	Other receivables due from related parties	2,477,332	-	5.08%
9	CMP(H.K.)	CMI	2	Other receivables due from related parties	347,958	-	0.71%
11	CMAI	CMAI(N.A.)	1	Other receivables due from related parties	17,532	-	0.04%
10	CHINGENG Land Development	PUJEN	2	Other receivables due from related parties	45,836	-	0.09%
15	PUJEN	CHINGENG Land Development	1	Other receivables due from related parties	197,263	-	0.40%
8	CMB (H.K.)	Suzhou CMB	1	Other long-term receivables due from related parties	24,214	-	0.05%

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

Subsidiaries – In sequence from 1.

Note 2: Relationship is classified into three types:

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

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

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

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

(Continued)

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

(b) Information on investees:

The following is the information on investees for the six months ended June 30, 2021 (excluding information on investees in Mainland China):

(In Thousands of NTD/In USD and CNY)

Name of Investor	Name of Investee	Location	Main Businesses	Original Investment Amount	Original Investment Amount	Balance as of June 30, 2021	Balance as of June 30, 2021	Balance as of June 30, 2021	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				June 30, 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	7,090,008	295,915	295,915	Subsidiaries
The Company	Sunflower Investment	Taiwan	Investing	99,000	99,000	67,006,291	% 99.00	831,264	5,588	5,532	Subsidiaries
The Company	Atrans Precision	Taiwan	Vehiclepartsprocessing	247,218	247,218	25,782,134	% 72.24	381,904	4,060	3,765	Subsidiaries
The Company	CMJ	Japan	Cast iron product retailing	4,887	4,887	500	% 83.33	92,517	28,539	23,782	Subsidiaries
The Company	CMAI	HongKong	Vehicleparts retailing	15,466	15,466	940,000	% 94.00	138,016	6,726	6,322	Subsidiaries
The Company	Pu Sheng Construction	Taiwan	Residents, commercial buildings and factories leasingand developing	-	30	-	% -	-	(17)	5,538	Subsidiaries
The Company	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasingand developing	2,003,067	2,003,067	158,877,643	% 56.65	3,901,996	71,262	29,079	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)	(303)	-	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	714,964	(30,982)	(31,927)	Subsidiaries
The Company	National Management	Taiwan	Management and consultingservices	10,000	10,000	1,000,000	% 100.00	10,920	(3,183)	(4,077)	Subsidiaries
The Company	The Splendor Hospitality	Taiwan	International tourist hotel services	975,000	975,000	97,500,000	% 50.00	198,111	(99,939)	(56,717)	Joint ventures accounted for usingequitymethod
The Company	Shangrila Tourism	Taiwan	Amusement park and hotel services	359,470	359,470	18,131,840	% 80.00	189,646	(5,184)	(4,752)	Subsidiaries
The Company	CMAAN Health	Taiwan	Management and consultingservices	50,000	50,000	5,000,000	% 50.00	41,278	6,489	3,685	Joint ventures accounted for usingequitymethod
The Company	InterContinental Taichung	Taiwan	International tourist hotel services	88,800	300	8,880,000	% 100.00	88,720	(27)	(27)	Subsidiaries
The Company	Calligraphy Greenway Plaza Co., Ltd	Taiwan	Management and consultingservices	30,000	30,000	3,000,000	% 100.00	31,263	428	1,323	Subsidiaries
Sunflower Investment	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasingand developing	280,768	280,768	42,269,213	% 15.07	1,002,782	71,262	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Atrans Precision	Taiwan	Vehicle parts processing	77,836	77,836	4,737,380	% 13.27	69,670	4,060	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)	(303)	Exempt from disclosure	Investees accounted for using equity method
Sunflower Investment	ADVANCISION (CAYMAN)	Cayman Islands	Investing and cast iron product retailing	29,154	29,154	1,871,288	% 4.46	27,423	(29,676)	Exempt from disclosure	Investee accounted for usingequitymethod
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 usingequitymethod
UEA	CMI	Cayman Islands	Investing in CMI (BVI) and cast iron product retailing	USD 136,536,250	USD 136,536,250	823,281,475	% 82.74	USD 295,990,811	USD 13,136,626	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 1,241,655,075	CNY 45,103,129	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 1,783,039,473	CNY 41,492,205	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 566,526,081	CNY (9,260,180)	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 1,244,102,720	CNY 45,103,129	Exempt from disclosure	Subsidiaries of CMI(BVI)
CMAI	CMAI Holding	USA	Investing	USD 8,328,644	USD 8,328,644	10,000	% 100.00	USD 2,406,921	USD (259,788)	Exempt from disclosure	Subsidiaries of CMAI
CMAI Holding	Pilot	USA	Assets leasing	USD 8,328,644	USD 8,328,644	-	% 100.00	USD 2,406,921	USD (259,788)	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 1,498,797	USD (318,373)	Exempt from disclosure	Subsidiaries of Pilot

(Continued)

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

Name of Investor	Name of Investee	Location	Main Businesses	Original Investment Amount	Original Investment Amount	Balance as of June 30, 2021	Balance as of June 30, 2021	Balance as of June 30, 2021	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				June 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
Atrans Precision	FAR HSING (SAMOA)	SAMOA	Investing	USD 3,922,055	USD 3,922,055	3,922,055	% 100.00	124,655	(6,407)	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 4,333,621	USD (1,053,448)	Exempt from disclosure	Investees of FAR HSING (SAMOA) accounted for using equitymethod
PUJEN Land Development	Pu Sheng Construction	Taiwan	Residents, commercial buildings and factories leasingand 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 equitymethod
PUJEN Land Development	CHINGENG Land Development	Taiwan	Residents, commercial buildings and factories leasingand developing	72,500	72,500	7,250,000	% 50.00	68,392	(1,925)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUJEN CHENGMEI Land Development	Taiwan	Residents, commercial buildings and factories leasingand developing	94,500	94,500	9,450,000	% 70.00	69,015	(72)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUCHIA Land Development	Taiwan	Residents, commercial buildings and factories leasingand developing	35,000	35,000	3,500,000	% 50.00	27,437	(764)	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	47,712	(5,184)	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	5,264	356	Exempt from disclosure	Joint ventures of PUJEN Land Development accounted for using equitymethod
PUJEN Land Development	Beyond Fitness	Taiwan	Sport training and other consulting service	4,050	4,050	405,000	% 36.82	3,884	(2,266)	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equitymethod

(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	Investme	nt Flows	Accumulated Outflow of Investment from Taiwan as of June 30, 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	835,800 (USD30,000)	2	388,238	-	-	388,238	(10,229) (CNY(2,352))	82.74%	(8,450) (CNY(1,943))	1,068,834 (CNY247,989)	82,542
Suzhou CMS	Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	668,640 (USD24,000)	2	423,406	-	-	423,406	207,819 (CNY47,775)	82.74%	171,626 (CNY39,454)	3,943,201 (CNY914,896)	14,601
Suzhou CMB	Cast iron product designing, manufacturingand retailing	2,284,520 (USD82,000)	2	-	-	-	-	(33,490) (CNY(7,699))	82.74%	(27,666) (CNY(6,360))	2,618,248 (CNY607,482)	-
CMW (Tianjin)	Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling	891,520 (USD32,000)	2	-	-	-	-	201,462 (CNY46,313)	82.74%	165,730 (CNY38,099)	4,789,863 (CNY1,111,337)	-
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	891,520 (USD32,000)	2	-	-	-	-	(2,143) (CNY(493))	82.74%	(1,770) (CNY(407))	940,013 (CNY218,100)	-
Qingdao Sourcing Specialists	Cast iron product retailing	2,786 (USD100)	2	-	-	-	-	6,419 (JPY24,520)	83.33%	5,349 (JPY20,432)	47,835 (JPY189,747)	-

(Continued)

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

(ii) Limitation on investment in Mainland China:

(In Thousands of NTD and USD)	(In Thousands of NTD and USD)	(In Thousands of NTD and USD)
Accumulated Investment in Mainland China as of June 30, 2021	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on Investment (Note 4)
811,644	5,812,181 (USD 208,621 )	-

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

Directly invested in Mainland China.
Indirectly invested in Mainland China through the third region.
Other methods.

Note 2: The recognition basis of the investment income and losses is the financial report audited by an international accounting firm which is in partnership with the accounting firm in the R.O.C.

Note 3: The amount stated is the investment income and losses and the book value of the investment at the end of the period which is recognized by the subsidiaries established through the investment in the third region.

Note 4: The Company complies with the amended Permit 9704604680 ‘Investment or technical cooperation review principal in China’, which obtained the certified documents of the operational scope of the headquarters from the Industrial Development Bureau, Ministry of Economic Affairs, with the valid period from March 3, 2020 to March 2, 2023. The restriction on the cumulative investment amount or proportion in China is not applicable.

Note 5: As of June 30, 2021, the company had obtained a surplus of $2,796,724 thousand (USD92,255 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.

(d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Chain-Yuan Investment Co., Ltd.	51,768,965	% 13.76
Fubon Life Assurance Co., Ltd.	27,944,000	% 7.42
Mr. Ming Shiann, Ho	26,312,540	% 6.99

(Continued)

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

(14) Segment information:

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

For the Three Months Ended June 30, 2021 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Three Months Ended June 30, 2020 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Six Months Ended June 30, 2021 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Six Months Ended June 30, 2020 Revenue from external customers $ Intersegment revenues Total revenue $ Reportable segment profit or loss $	Metal Manufacturing Segment	Real Estate Development Segment 195,571 848 196,419 (6,140) 18,947 1,241 20,188 (31,641) 576,681 1,698 578,379 87,790 22,410 2,533 24,943 (109,361)	Lifestyle Hospitality Segment 96,203 14,045 110,248 (46,250) 135,857 17,937 153,794 12,157 264,012 37,656 301,668 (36,375) 283,751 37,277 321,028 (25,830)	Reconciliation and Elimination - (907,111) (907,111) (78,881) - (412,961) (412,961) (38,745) - (1,807,949) (1,807,949) (171,033) - (915,090) (915,090) (146,865)	Total
	$ 3,017,029 892,218 $ 3,909,247 $ 236,237 $ 2,187,141 393,783 $ 2,580,924 $ 151,574 $ 6,077,823 1,768,595 $ 7,846,418 $ 500,362 4,301,967 875,280 5,177,247 321,287				3,308,803 - 3,308,803 104,966 2,341,945 - 2,341,945 93,345 6,918,516 -
					6,918,516
					380,744
					4,608,128 - 4,608,128 39,231

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

AI assistant

CMP — Interim / Quarterly Report 2021

51855_rns_2021-11-15_807e12e2-468f-4da6-9788-2034ffcc89bb.pdf

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three Months and Six Months Ended June 30, 2021 and 2020

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

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

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2021 and 2020

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Six Months Ended June 30, 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

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

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

(ii) Joint ventures

(g) Loss of control over a subsidiary

(h) Property, plant and equipment

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

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

(i) Right-of-use assets

(j) Investment property

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

(k) Intangible assets

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

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

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

(m) Short-term borrowings

(i) Borrowing and repayment

(n) Long-term borrowings

(i) Borrowing and repayment

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

(iii) Borrowing covenants

(o) Lease liabilities

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

(i) Real estate leases

(ii) Other leases

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

(p) Provisions

(i) Warranties

(ii) Financial guarantee contracts

(iii) Legal

(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

(t) Share capital and other equity

(i) Capital stock

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

CMP Interim / Quarterly Report 2021