CMP - Interim / Quarterly Report 2021

Stock Code:1532

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

with Independent Auditors’ Review Report For the Nine Months Ended September 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 12～46 46～53 53 53～55 56 56 56 57～60 61～62 62～63 63 64

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 September 30, 2021 and 2020, and the related consolidated statements of comprehensive income, for the three months and nine months ended September 30, 2021 and 2020, and the changes in equity and cash flows for the nine months ended September 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 $4,594,680 thousand and $4,268,145 thousand, constituting 9.42% and 9.67% of the consolidated total assets; and the total liabilities amounting to $3,450,363 thousand and $3,463,059 thousand, constituting 10.51% and 11.95% of the consolidated total liabilities as of September 30, 2021 and 2020, respectively, as well as the total comprehensive income (loss) amounting to $63,875 thousand, $(42,611) thousand, $41,329 thousand and $(153,274) thousand, constituting 13.56%, (11.46)%, 6.65% and (128.96)% of the consolidated total comprehensive income (loss) for the three months and nine months ended September 30, 2021 and 2020, respectively.

Furthermore, as stated in Note 6(e), the other equity accounted investments of the Group in its investee companies of $670,223 thousand and $758,284 thousand as of September 30, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $(20,191) thousand, $(22,504) thousand, $(81,610) thousand and $(90,818) thousand for the three months and nine months ended September 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 September 30, 2021 and 2020, and of its consolidated financial performance for the three months and nine months ended September 30, 2021 and 2020, and its consolidated cash flows for the nine months ended September 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) November 11, 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 September 30, 2021 and 2020

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

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

September 30, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (Notes 6(a) and (z)) $ 4,082,796 8 1170 Notes and accounts receivable, net (Notes 6(c), (v) and (z)) 3,838,915 8 1180 Accounts receivable due from related parties, net (Notes 6(z) and 7) 6,104 - 1200 Other receivables (Note 6(z)) 113,119 - 1210 Other receivables due from related parties (Notes 6(z) and 7) 28,983 - 130X Inventories (Notes 6(d), 8 and 9(a)) 20,594,464 42 1410 Prepayments (Note 9(a)) 346,106 1 1470 Other current assets 537,016 1 1476 Other current financial assets (Notes 6(z), 8 and 9(a)) 1,814,725 4 1480 Incremental costs of obtaining contracts 314,890 1 Total current assets 31,677,118 65 Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (Notes 6(b) and (z)) 210,945 1 1550 Investments accounted for using equity method (Note 6(e)) 670,223 1 1600 Property, plant and equipment (Notes 6(h), 8 and 9(a)) 10,346,729 21 1755 Right-of-use assets (Note 6(i)) 2,074,621 4 1760 Investment property, net (Notes 6(j) and 8) 707,443 2 1780 Intangible assets (Note 6(k)) 399,397 1 1840 Deferred tax assets 33,947 - 1900 Other non-current assets (Notes 6(h), 7, 8 and 9(a)) 1,954,087 4 1975 Non-current net defined benefit assets 13,265 - 1980 Other non-current financial assets (Notes 6(l), (z), 7 and 9(a)) 683,509 1 Total non-current assets 17,094,166 35 Total assets $ 48,771,284 100	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	September 30, 2020 Amount % 4,189,484 9 3,504,756 8 864 - 71,112 - 39,413 - 18,655,218 42 281,311 1 306,095 1 1,213,279 2 196,033 1 28,457,565 64 250,179 1 758,284 2 9,542,117 22 2,259,511 5 691,925 2 398,725 1 35,810 - 1,045,308 2 - - 681,279 1 15,663,138 36 44,120,703 100 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 Total equity attributable to owners of parent: 36XX Non-controlling interests Total equity Total liabilities and equity	September 30, 2021		December 31, 2020		September 30, 2020
			Amount %		Amount %		Amount %
			$ 10,707,640 22 3,766,073 8 3,043,139 6 31,532 - 1,623,431 3 140,051 - 82,743 - 178,030 - 1,325,224 3 221,266 1 21,119,129 43 9,107,058 19 580,285 1 1,688,535 3 314,917 1 27,831 - 11,718,626 24 32,837,755 67 3,761,221 8 1,488,063 3 6,804,948 14 (10,274) - 12,043,958 25 3,889,571 8 15,933,529 33 $ 48,771,284 100		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		10,347,169 24 2,317,362 5 2,143,274 5 22,005 - 959,454 2 18,865 - 70,250 - 185,995 1 9,673 - 110,356 - 16,184,403 37 9,943,087 23 615,457 1 1,851,136 4 354,909 1 39,997 - 12,804,586 29 28,988,989 66 3,761,221 9 1,487,802 3 6,230,749 14 (119,205) - 11,360,567 26 3,771,147 8 15,131,714 34 44,120,703 100

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 Nine Months Ended September 30, 2021 and 2020

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

For the Three Months Ended September 30 2021 2020 Amount % Amount % 4000 Operating revenues (Notes 6(v) and 7) $ 5,578,372 100 3,366,396 100 5000 Operating costs (Notes 6(d) and 7) (4,388,406) (79) (2,532,017) (75) Gross profit from operations 1,189,966 21 834,379 25 Operating expenses (Note 7): 6100 Selling expenses (207,913) (4) (161,397) (5) 6200 Administrative expenses (414,734) (7) (365,870) (11) 6300 Research and development expenses (2,606) - (2,841) - 6450 Expected credit (losses) gains (Note 6(c)) (1,757) - 3,387 - Total operating expenses (627,010) (11) (526,721) (16) 6500 Net other income and expenses (Note 6(x) and 7) - - 1,907 - Net operating income 562,956 10 309,565 9 Non-operating income and expenses: 7100 Interest income (Notes 6(y) and 7) 16,944 - 8,997 - 7010 Other income (Notes 6(y) and 7) 56,973 1 23,191 1 7020 Other gains and losses (Note 6(g) and (y)) (8,625) - (28,589) (1) 7050 Finance costs (Note 6(y)) (70,728) (1) (65,249) (2) 7375 Share of losses of associates and joint ventures accounted for using equity method (Note 6(f)) (20,191) - (22,504) - Total non-operating income and expenses (25,627) - (84,154) (2) Profit from continuing operations before tax 537,329 10 225,411 7 7950 Less: Tax expense (Note 6(s)) (57,891) (1) (48,378) (2) 8200 Net profit 479,438 9 177,033 5 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)) (4,782) - (1,155) - 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 (4,782) - (1,155) - 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign financial statements (Note 6(t)) (3,464) - 195,977 6 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 (3,464) - 195,977 6 8300 Other comprehensive income (after tax) (8,246) - 194,822 6 8500 Comprehensive income $ 471,192 9 371,855 11 Net profit, attributable to: 8610 Owners of parent $ 300,479 6 126,185 4 8620 Non-controlling interests 178,959 3 50,848 1 $ 479,438 9 177,033 5 Comprehensive income attributable to: 8710 Owners of parent $ 293,008 6 290,447 9 8720 Non-controlling interests 178,184 3 81,408 2 $ 471,192 9 371,855 11 Earnings per share (expressed in dollars) (Note 6(u)) 9750 Basic earnings per share $ 0.80 0.33 9850 Diluted earnings per share $ 0.80 0.33	For the Nine Months Ended September 30 2021 2020 Amount % Amount % 12,496,888 100 7,974,524 100 (9,771,776) (78) (6,117,446) (77) 2,725,112 22 1,857,078 23 (515,386) (4) (368,464) (4) (1,143,810) (10) (1,015,862) (13) (8,912) - (7,825) - (1,630) - 11,444 - (1,669,738) (14) (1,380,707) (17) - - 5,768 - 1,055,374 8 482,139 6 45,976 - 36,342 - 121,745 1 83,319 1 (33,527) - (35,606) - (189,885) (1) (210,734) (3) (81,610) (1) (90,818) (1) (137,301) (1) (217,497) (3) 918,073 7 264,642 3 (132,509) (1) (63,620) (1) 785,564 6 201,022 2 (16,971) - (1,155) - - - - - (16,971) - (1,155) - (147,292) (1) (81,015) (1) - - - - (147,292) (1) (81,015) (1) (164,263) (1) (82,170) (1) 621,301 5 118,852 1 531,794 4 138,987 2 253,770 2 62,035 - 785,564 6 201,022 2 398,595 3 75,891 1 222,706 2 42,961 - 621,301 5 118,852 1 1.41 0.36 1.41 0.36	For the Nine Months Ended September 30 2021 2020 Amount % Amount % 12,496,888 100 7,974,524 100 (9,771,776) (78) (6,117,446) (77) 2,725,112 22 1,857,078 23 (515,386) (4) (368,464) (4) (1,143,810) (10) (1,015,862) (13) (8,912) - (7,825) - (1,630) - 11,444 - (1,669,738) (14) (1,380,707) (17) - - 5,768 - 1,055,374 8 482,139 6 45,976 - 36,342 - 121,745 1 83,319 1 (33,527) - (35,606) - (189,885) (1) (210,734) (3) (81,610) (1) (90,818) (1) (137,301) (1) (217,497) (3) 918,073 7 264,642 3 (132,509) (1) (63,620) (1) 785,564 6 201,022 2 (16,971) - (1,155) - - - - - (16,971) - (1,155) - (147,292) (1) (81,015) (1) - - - - (147,292) (1) (81,015) (1) (164,263) (1) (82,170) (1) 621,301 5 118,852 1 531,794 4 138,987 2 253,770 2 62,035 - 785,564 6 201,022 2 398,595 3 75,891 1 222,706 2 42,961 - 621,301 5 118,852 1 1.41 0.36 1.41 0.36
	2021 Amount % 12,496,888 100 (9,771,776) (78) 2,725,112 22 (515,386) (4) (1,143,810) (10) (8,912) - (1,630) - (1,669,738) (14) - - 1,055,374 8 45,976 - 121,745 1 (33,527) - (189,885) (1) (81,610) (1) (137,301) (1) 918,073 7 (132,509) (1) 785,564 6 (16,971) - - - (16,971) - (147,292) (1) - - (147,292) (1) (164,263) (1) 621,301 5 531,794 4 253,770 2 785,564 6 398,595 3 222,706 2 621,301 5 1.41 1.41
		0.36

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 Nine Months Ended September 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) - (61,952) (61,952) - - - - - - - - (205,701) 32,198 - (116,198) (116,198) - - - - - - - - (84,000)		87,640		-		11,889,197	3,852,894 62,035 (19,074) 42,961 - - - 676 - - 1,924 (127,308) 3,771,147 3,975,678 253,770 (31,064) 222,706 - - - (404) 842 (66,576) (242,675) - 3,889,571
	- -		- -	- -	138,987 -					- -
	-		-	-	138,987					-
			45,022 - - - - - - -	- 7,028 - - - - - -
			1,801,169	56,109
			1,801,169	56,109
			- -	- -
			-	-
			42,839 - - - - - - -
			1,844,008

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 Nine Months Ended September 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 losses (gains) Net losses on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of losses of associates and joint ventures accounted for using equity method Losses (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: Current financial assets at fair value through profit or loss Notes and accounts receivable, net Accounts receivable due from related parties, net Other receivables Inventories Prepayments Other current assets Other financial assets Incremental costs of obtaining contracts Total changes in operating assets Changes in operating liabilities: Notes and accounts payable (including related parties), net Other payables Current contract liabilities Other current liabilities Other non-current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows generated from operating activities Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income 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 Acquisition of investment properties 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 Cash dividends paid 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 Nine Months	Ended September 30 2020 264,642 712,844 11,633 (11,444) 6,000 210,734 (36,342) (30,167) 90,818 (5,355) 171 - (1,185) 25,564 -
	2021 $ 918,073 720,447 3,717 1,630 - 189,885 (45,976) (14,600) 81,610 4,659 164 5,013 (28) 3,486 (15,067) 934,940 - (84,127) (6,057) (25,792) (2,368,408) (101,259) (274,466) (251,271) (91,848) (3,203,228) 579,832 189,222 1,274,551 124,844 (20,071) 2,148,378 (1,054,850) (119,910) 798,163 35,550 14,653 (224,447) (171,921) 451,998 (460) 29,297 834 3,632 (829,164) 3,414 (4,595) - 371 (1,072,667) (1,869,338) 8,393,889 (5,789,236) 85,003 3,946,147 (4,456,558) (142,382) 4,631 (387,406) - (242,675) (68,552) 1,342,861 (56,530) (131,009) 4,213,805 $ 4,082,796
		973,271
		(11,070) 375,708 (384) (35,971) (955,639) (17,743) (63,153) (133,822) (39,929)
		(882,003)
		(390,728) 75,188 930,027 (8,265) (1,193)
		605,029
		(276,974)
		696,297
		960,939 26,363 30,217 (249,830) (156,886)
		610,803
		- - 21,241 - (585,959) 7,844 (499) (101) 931 (151,467)
		(708,010)
		7,502,308 (5,422,125) 329,842 3,476,100 (4,387,181) (140,648) 3,224 (346,727) (257,223) (127,308) 1,924
		632,186
		(46,042) 488,937 3,700,547
		4,189,484

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 Nine Months Ended September 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 November 11, 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 September 30, 2021 December 31, 2020 September 30, 2020 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 85.35 Note 1 % 99.00 % 99.00 % 99.00 Note 1	Percentage Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 100.00 % 100.00 % 100.00 Note 2 % 85.51 % 85.51 % 85.35 Note 1 % 99.00 % 99.00 % 99.00 Note 1
				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 September 30, 2021 December 31, 2020 September 30, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 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 September 30, 2021 December 31, 2020 September 30, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 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
				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 % 100.00 % 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
			September		December 31,		September
Investor	Name of Subsidiary	Principal Activity	30, 2021		2020		30, 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.	Vehicle parts retailing	100.00	%	100.00	%	100.00	%	Note 1
	(CMAI N.A.)
Note 1: An non-significant subsidiary, its financial statements have not been						reviewed.
Note 2: The financial statements have been reviewed.
Note 3: 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 period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, and be adjusted by the significant market flotation, significant curtailment, settlement or other significant single occasions.

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

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

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

(6) Explanation of significant accounts:

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2020. Please refer to Note 6 of the 2020 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash on hand Cash in banks Time deposits Cash and cash equivalents	September 30, 2021 $ 6,565 3,153,591 922,640 $ 4,082,796	December 31, 2020 6,673 2,680,248 1,526,884 4,213,805	September 30, 2020
			6,994 2,645,708 1,536,782
			4,189,484

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

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

Equity investments at fair value through other comprehensive income Stocks 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.	September 30, 2021 $ 36,901 116,122 215	December 31, 2020 September 30, 2020 62,763 55,355 135,300 135,300 435 435

(Continued)

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

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	September 30, 2021 754 32,749 24,204 $ 210,945	December 31, 2020 1,574 31,580 25,935 257,587	September 30, 2020
			1,574 31,580 25,935
			250,179

(i) The Group holds the equity investments for long-term strategic purposes, rather than transaction purposes. Therefore, the investments are measured at FVOCI.
(ii) For the three months and nine months ended September 30, 2021 and 2020, the Group received dividend income amounting to $1,088 thousand, $2,577 thousand, $14,600 thousand and $30,167 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 three 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 September 30, 2021, December 31 and September 30, 2020, the financial assets were not pledged as collateral.
(c) Notes and accounts receivable

Notes receivable from operating activities Accounts receivable measured as amortized cost Subtotal Less: Loss allowance Total	September 30, 2021 $ 459,834 3,383,797 3,843,631 (4,716) $ 3,838,915	December 31, 2020 455,795 3,365,435 3,821,230 (3,120) 3,818,110	September 30, 2020 363,841 3,155,270 3,519,111 (14,355) 3,504,756

(Continued)

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

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

September 30, 2021	September 30, 2021
Gross Carrying Amount Weighted Average Loss Rate $ 3,702,108 0% 107,550 0% 20,000 0%~6% 7,263 0%~10.54% 4,254 25.08%~32.97% 2,456 100% $ 3,843,631 December 31, 2020		Loss Allowance Provision
		- - 258 726 1,276 2,456
		4,716

Gross Carrying Amount Weighted Average Loss Rate $ 3,675,883 0% 87,468 0% 55,840 0%~3.3% 490 0%~10.54% 431 25.08%~32.97% 1,118 100% $ 3,821,230 September 30, 2020		Loss Allowance Provision
		- - 1,824 49 129 1,118
		3,120

Gross Carrying Amount $ 3,168,147 289,087 21,064 22,098 14,546 4,169 $ 3,519,111	Weighted Average Loss Rate 0% 0% 0% 0%~11% 23%~56.78% 100%	Loss Allowance Provision
		- - - 1,927 8,259 4,169
		14,355

(Continued)

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

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

Balance on January 1 Impairment losses (recovery) recognized Amounts written off Foreign exchange losses Balance on September 30	For the Nine Months Ended September 30 2021 2020 $ 3,120 26,005 1,630 (11,444) - (6) (34) (200) $ 4,716 14,355
	2021 $ 3,120 1,630 - (34) $ 4,716

The financial assets mentioned above were not pledged as collateral.

(d) Inventories

Raw materials Work in process Semi-finished goods Finished goods Merchandise Land held for development Properties and land held for sale Construction-in-progress Prepayments for land Other inventories	September 30, 2021 $ 230,023 258,473 114,078 1,219,441 82,481 7,346,655 2,001,284 8,954,481 180,245 207,303 $ 20,594,464	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	September 30, 2020
			104,150 216,015 100,012 718,605 59,318 6,105,194 3,519,820 7,375,931 131,099 325,074
			18,655,218

For the three months and nine months ended September 30, 2021 and 2020, the cost of goods sold amounted to $4,388,406 thousand, $2,532,017 thousand, $9,771,776 thousand and $6,117,446 thousand, respectively. For the three months and nine months ended September 30, 2021 and 2020, the (loss for inventory obsolescence) reversal gain from the (decrease) increase in inventories' net realizable value amounted to $(18,353) thousand, $(6,233) thousand, $(18,773) thousand and $29,337 thousand, respectively.

For the information on inventories pledged as collateral, as of September 30, 2021, December 31 and September 30, 2020, please refer to Note 8.

(Continued)

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

(e) Investments accounted for using equity method

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

Associates Joint ventures	September 30, 2021 $ 452,285 217,938 $ 670,223	December 31, 2020 452,283 295,983 748,266	September 30, 2020
			452,173 306,111
			758,284

(i) Associates

Due to the fact that the Group does not have the obligation of assuming the excess losses, it ceased the recognition of the losses from the investment of Amida Trustlink Assets Management Co., Ltd. (Amida Trustlink Assets). For the three months and nine months ended September 30, 2021 and 2020, the unrealized investment losses amounted to $73 thousand, $70 thousand, $217 thousand and $234 thousand, respectively; the accumulated unrealized investment losses, as of September 30, 2021 and 2020, amounted to $57,626 thousand and $57,281 thousand, respectively.

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

			September 30,	September 30,	December 31,	September 30,
				2021	2020	2020
Carrying amount of individually			$	452,285	452,283	452,173
insignificant	associates' equity
		For	the Three	Months Ended	For the Nine Months Ended
			September 30		September 30
		2021		2020	2021	2020
Attributable to the	Group:
Net income (loss)		$	6,895	(4,817)	(1,670)	(14,248)
Other comprehensive			-	-	-	-
income
Comprehensive	income	$	6,895	(4,817)	(1,670)	(14,248)

(ii) Joint ventures

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

The Group’s financial information f that were individually insignificant is	or joint ventures ac as follows:	counted for using t	he equity method
Carrying amount of individually insignificant joint ventures' equity	September 30, 2021 $ 217,938	December 31, 2020 295,983	September 30, 2020
			306,111

(Continued)

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

Attributable to the Group: Net loss Other comprehensive income Comprehensive income	For the Three Months Ended September 30 2021 2020 $ (27,086) (17,687) - - $ (27,086) (17,687)	For the Nine Months Ended September 30 2021 2020 (79,940) (76,570) - - (79,940) (76,570)	For the Nine Months Ended September 30 2021 2020 (79,940) (76,570) - - (79,940) (76,570)
	2021 $ (27,086) - $ (27,086)	2021 (79,940) - (79,940)
			(76,570)

(iii) Pledge to secure

As of September 30, 2021, December 31 and September 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.

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

For the nine months ended September 30, 2021 and 2020, the Company obtained CMAI and Atrans Precision additional equity on $8,570 thousand and $9,490 thousand, increasing the percentage ownership from 94.00% to 100.00% and 83.74% to 85.35% , respectively.

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

Acquisition of non-controlling interests Payment to non-controlling interests Difference between consideration and carrying amount of subsidiaries acquired or disposed of	For the Nine Months Ended September 30 2021 2020 CMAI Atrans Precision $ 8,974 8,919 (8,570) (9,490) $ 404 (571)
	2021 CMAI $ 8,974 (8,570) $ 404

The capital surplus resulting from changes in ownership is not sufficient as of September 30, 2021 and 2020, the remaining difference was debited to retained earnings.

(g) Loss of control over a subsidiary

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

(Continued)

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

(h) Property, plant and equipment

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

Buildings	Prepayments for Equipment and Construction in Progress	Total 18,231,631 829,164 (177,794) 19,809 (204,826)
3,445,580 - (1,756) 677 (38,669) 3,405,832 3,361,551 771 (5,540) 328 (22,842) 3,334,268 1,448,672 75,928 (1,756) - (14,612) 1,508,232 1,327,569 75,163 (5,540) (2,769) (7,378) 1,387,045 1,996,908 1,897,600 2,033,982 1,947,223	1,202,077 685,605 - (198,201) (21,151) 1,668,330 543,517 406,046 - (170,627) (3,623) 775,313 - - - - - - - - - - - - 1,202,077 1,668,330 543,517 775,313
		18,697,984
		17,417,169 585,959 (318,355) (32,624) (106,562)
		17,545,587
		8,067,068 562,843 (169,721) - (108,935)
		8,351,255
		7,827,210 551,639 (315,866) (2,769 (56,744)
		8,003,470
		10,164,563
		10,346,729
		9,589,959
		9,542,117

(i) As of September 30, 2021, December 31 and September 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.

(Continued)

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

(ii) The land held by the Group is located at Xinfeng Township Kengzikou and Zaoqiao Township Niulan Lake. According to the laws and regulations, companies cannot be registered as landowners, due to the usage of the land is registered for farming, graveyard and conservation. Therefore, the ownership of the land was passed to individuals and was registered as private personal property. For obtaining the right of land, the Group held the land certificate and entered into an agreement with the registered owner, which specified that the Group retain all rights and obligations of the land, and pledged the land as collateral for the Group. The information regarding the land mentioned above, which is presented in the line item of other non-current assets, is as follows:

Land	September 30, 2021 $ 44,299	December 31, 2020 44,299	September 30, 2020
			44,299

(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 nine months ended September 30, 2021 and 2020 are as follows:

Cost: Balance on January 1, 2021 Additions Reduction for expiration Influence from exchange rates Balance on September 30, 2021 Balance on January 1, 2020 Additions Reduction for expiration Influence from exchange rates Balance on September 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 September 30, 2021 Balance on January 1, 2020 Depreciation Transferred to construction cost Reduction for expiration Influence from exchange rates Balance on September 30, 2020	Land $ 1,007,888 - - (5,453) $ 1,002,435 $ 1,002,435 - - (3,116) $ 999,319 $ 155,174 17,608 - - (1,383) $ 171,399 $ 130,437 17,473 - - (696) $ 147,214	Buildings 2,394,673 1,896 (2,872) - 2,393,697 2,397,748 238 (6,160) (12) 2,391,814 1,158,342 120,552 615 (2,854) - 1,276,655 999,972 120,899 650 (5,786) (7) 1,115,728	Machinery 48,195 - - (629) 47,566 54,032 - (13,754) (469) 39,809 29,119 10,066 - - (458) 38,727 24,730 9,919 - (9,124) (204) 25,321	Transportation Equipment 17,318 9,542 (7,355) (17) 19,488 25,475 1,433 (8,037) (23) 18,848 12,171 4,084 - (7,172) (16) 9,067 15,221 5,114 - (8,037) (18) 12,280	Office Equipment 2,228 723 (888) (13) 2,050 2,240 430 (393) (17) 2,260 1,122 330 - (586) (7) 859 1,022 391 - (378) (8) 1,027	Other Equipment 122,262 607 (196) - 122,673 122,607 259 (604) - 122,262 14,117 2,659 - (195) - 16,581 10,997 2,647 - (413) - 13,231	Total 3,592,564 12,768 (11,311) (6,112) 3,587,909 3,604,537 2,360 (28,948) (3,637) 3,574,312 1,370,045 155,299 615 (10,807) (1,864) 1,513,288 1,182,379 156,443 650 (23,738) (933) 1,314,801

(Continued)

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

Carrying value: Balance on January 1, 2021 Balance on September 30, 2021 Balance on January 1, 2020 Balance on September 30, 2020	Land $ 852,714 $ 831,036 $ 871,998 $ 852,105	Buildings 1,236,331 1,117,042 1,397,776 1,276,086	Machinery 19,076 8,839 29,302 14,488	Transportation Equipment 5,147 10,421 10,254 6,568	Office Equipment 1,106	Other Equipment 108,145 106,092 111,610 109,031	Total 2,222,519
					1,191		2,074,621
					1,218		2,422,158
					1,233		2,259,511

(j) Investment property

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

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

The movements in the investment property is as follows:

The movements in the investment property	is as follows:
Carrying value: Balance on January 1, 2021 Balance on September 30, 2021 Balance on January 1, 2020 Balance on September 30, 2020	Owned Property Land Buildings $ 593,697 97,459 $ 609,567 97,876 $ 545,783 93,790 $ 593,697 98,228	Total
	Land $ 593,697 $ 609,567 $ 545,783 $ 593,697
		691,156
		707,443
		639,573
		691,925

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 nine months ended September 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 September 30, 2021, December 31 and September 30, 2020, the details of investment properties pledged as collateral, please refer to Note 8.

(Continued)

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

(k) Intangible assets

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

Cost: Balance on January 1, 2021 Acquisitions Reclassification Influence from exchange rates Balance on September 30, 2021 Balance on January 1, 2020 Acquisitions Influence from exchange rates Balance on September 30, 2020 Accumulated amortization and impairment loss: Balance on January 1, 2021 Amortization Influence from exchange rates Balance on September 30, 2021 Balance on January 1, 2020 Amortization Influence from exchange rates Balance on September 30, 2020 Carrying value: Balance on January 1, 2021 Balance on September 30, 2021 Balance on January 1, 2020 Balance on September 30, 2020	Goodwill $ 390,862 - - (6,456) $ 384,406 $ 393,630 - (5,941) $ 387,689 $ - - - $ - $ - - - $ - $ 390,862 $ 384,406 $ 393,630 $ 387,689	Patent 63,669 - - (1,017) 62,652 62,652 - (582) 62,070 63,669 - (1,017) 62,652 62,652 - (582) 62,070 - - - -	Client Relationship 229,850 - - (3,673) 226,177 226,177 - (2,099) 224,078 229,850 - (3,673) 226,177 218,384 7,702 (2,008) 224,078 - - 7,793 -	Computer Software 32,878 4,595 4,212 (68) 41,617 32,427 499 (94) 32,832 22,978 3,717 (69) 26,626 17,960 3,931 (95) 21,796 9,900 14,991 14,467 11,036	Total 717,259 4,595 4,212 (11,214) 714,852 714,886 499 (8,716) 706,669 316,497 3,717 (4,759) 315,455 298,996 11,633 (2,685) 307,944 400,762 399,397 415,890 398,725

(Continued)

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

(l) Other non-current financial assets

Debt obligation receivable－The Splendor Hospitality International Co., Ltd. Debt obligation receivable－Chin Ling Steel Co., Ltd.－Non-guaranteed Less: Accumulated impairment－Debt obligation receivable－Chin Ling Steel Co., Ltd. Refundable deposits	September 30, 2021 $ 575,000 23,250 (23,250) 108,509 $ 683,509	December 31, 2020 575,000 23,250 (23,250) 109,059 684,059	September 30, 2020 575,000 23,250 (23,250) 106,279 681,279

(i) In June, 2006, the Group and Prince Housing and Development Co., Ltd. (Prince Housing and Development) entered into an assignment of debt agreement with Amida Trustlink Assets which the Group and Prince Housing and Development each owned half of the obligation. The Group and Prince Housing and Development each injected 50% and obtained the major mortgages, collateral, and the appurtenant rights of Taichung Port Splendor Hospitality International Co., Ltd. (Taichung Port Splendor). The Group and Prince Housing and Development agreed to pay Amida Trustlink Assets the residual debt in the agreement, the related costs and returns when the real right of the underlying is completed. The Group and Prince Housing and Development each injected 50% and cofounded The Splendor Hospitality International Co., Ltd. (The Splendor Hospitality International). In November 2006, The Splendor Hospitality International and Taichung Port Splendor entered into a specific asset transfer agreement and obtained the specific assets of Taichung Port Splendor by assuming its debts. The Group’ s right of receivables transferred from Taichung Port Splendor to The Splendor Hospitality International. In December 2006, the Group and Prince Housing and Development signed a supplementary agreement with Amida Trustlink Assets which increased the selling price of all debt obligations and canceled the payment of the related cost and return. The verdinglichung obligatorischer rechte was assumed by the Group and Prince Housing and Development equally. The details of total debt obligation receivable and obligation cost after deducted the received amount in 2007 is as follows:

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

(Continued)

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

Underlying				December 31, 2020
	Obligation Cost		Obligation Principal	Valuation Assessment Collateral According to the assessment of Jones Lang Lasalle Real Estate Appraiser, the valuation of mortgage is $7,056,000 thousand. After deducting the 1stsecurity, which amounted to $3,960,000 thousand, the residual mortgage attributed to the Group amounted to $1,548,000 thousand. The building of The Splendor Hospitality International (the 2nd security) September 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 September 30, 2021, December 31 and September 30, 2020, the cost and principal of debt obligation from Chin Ling Steel were $23,250 thousand and $118,561 thousand, respectively.

(m) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Notes and bills payable Total Unused credit limit Range of interest rates	September 30, 2021 $ 3,270,403 6,902,668 534,569 $ 10,707,640 $ 4,149,163 0.52%~2.25%	December 31, 2020 1,820,974 5,720,074 449,566 7,990,614 6,543,281 0.52%~2.25%	September 30, 2020
			2,539,458 7,248,151 559,560
			10,347,169
			4,263,027
			0.51%~3.68%

(i) Borrowing and repayment

For the nine months ended September 30, 2021 and 2020, the Group obtained from short-term borrowings amounting to $8,393,889 thousand and $7,502,308 thousand with an interest rate of 0.52%～3.72% and 0.51%～3.68%; the repayment amounting to $5,789,236 thousand and $5,422,125 thousand, respectively. Please refer to Note 6(y) for details of the interest expense.

(ii) Collateral for bank borrowings

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

(Continued)

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

(n) Long-term borrowings

Unsecured bank borrowings Secured bank borrowings Less: Current portion Unamortized long-term borrowings costs Total Unused credit limit Interest rate range	September 30, 2021 $ 2,849,040 7,583,704 (1,325,224) (462) $ 9,107,058 $ 832,120 0.93%~2.81%	December 31, 2020 2,889,763 8,150,663 (100,240) (824) 10,939,362 341,821 0.63%~3.70%	September 30, 2020 2,514,215 7,439,236 (9,673) (691) 9,943,087 41,676 0.63%~4.21%

(i) Borrowing and repayment

For the nine months ended September 30, 2021 and 2020, the Group obtained from long-term borrowings amounting to $3,946,147 thousand and $3,476,100 thousand with an interest rate of 0.90%～1.90% and 0.63%～2.00%; the repayment amounting to $4,456,558 thousand and $4,387,181 thousand, respectively. Please refer to Note 6(y) for details of the interest expense.

(ii) Collateral for bank borrowings

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

(iii) Borrowing covenants

The Group entered into a syndicated loan contract in a total credit of $3,150,000 thousand with multiple financial institutions on April 23, 2019. According to the contract, during the borrowing repayment periods the Company should file annual and semi-annual consolidated financial statements which were audited and reviewed by CPA and must comply with certain financial covenants, such as the current ratio shall be greater than or equal to 100%, the debt ratio shall be less than or equal to 200%, the interest coverage ratio shall be greater than or equal to 5 times, and the tangible net value shall be greater than or equal to $14,000,000 thousand. The compliance with the aforementioned covenants will be examined semi-annually. As of 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.

(Continued)

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

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	September 30, 2021 $ 178,030 $ 1,688,535	December 31, 2020 184,634 1,812,222	September 30, 2020
			185,995
			1,851,136

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

The amounts recognized in profit or loss are as follows:

For the Three Months Ended September 30 2021 2020 $ 6,015 6,635 $ 2,583 2,565 $ 4,222 15	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 6,015 $ 2,583 $ 4,222	2021 18,531 9,741 4,227	2020
		20,486
		9,852
		25

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

Total cash outflow for leases (i) Real estate leases	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 $ 170,654	2020
		170,986

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.

(Continued)

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

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.

(p) Provisions

Provisions
Current: Warranties Subtotal Non-current: Financial guarantee contracts Legal Subtotal Total	September 30, 2021 $ - - 24,792 236,052 260,844 $ 260,844	December 31, 2020 186 186 33,269 236,052 269,321 269,507	September 30, 2020
			194
			194
			36,695 236,052
			272,747
			272,941

(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.

(Continued)

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

(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:

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	September 30, 2021 $ 16,347 8,049 2,483 - $ 26,879	December 31, 2020 17,020 12,355 5,265 355 34,995	September 30, 2020
			11,741 7,757 1,512 -
			21,010

For the three months and nine months ended September 30, 2021 and 2020, rental revenues from investment properties amounted to $3,477 thousand, $3,036 thousand, $10,309 thousand and $8,997 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 September 30	For the Three Months Ended September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 $ -	2020		2021 -	2020
		15			19

(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.

(Continued)

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

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

For the Three Months Ended September 30 2021 2020 $ 533 575 102 107 245 282 93 92 $ 973 1,056	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 533 102 245 93 $ 973	2021 1,612 301 720 286 2,919	2020
		1,744 313 842 271
		3,170

For the three months and nine months ended September 30, 2021 and 2020, the Group’ s 、、 employee benefits retirement expenses amounted to $0 $1,811 $0 and $1,811 thousand, respectively.

(ii) Defined contribution plans

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

For the Three Months Ended September 30 2021 2020 $ 11,272 394 583 156 8,286 1,702 83 82 $ 20,224 2,334	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 11,272 583 8,286 83 $ 20,224	2021 32,670 1,836 22,889 256 57,651	2020
		13,793 1,086 12,976 248
		28,103

(iii) Short-term employee benefits

Paid leave and other liabilities	September 30, 2021 $ 13,366	December 31, 2020 17,034	September 30, 2020
			16,818

(Continued)

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

(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 September 30	For the Three Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 47,179 15,659 8,257 (5,622) 65,473 (7,582) $ 57,891	2020	2021 124,056 29,360 8,257 (10,881) 150,792 (18,283) 132,509	2020 86,856 13,981 6,551 (27,764)
	40,920 13,414 - -
	54,334		79,624
			(16,004)
			63,620

(iii) The income tax returns of the Company through 2019 (except for 2018), as well as the other domestic consolidated subsidiaries through 2019, had been assessed and approved by the tax authority according to the income tax return filed by the Group. The Company and Sunflower Investment did not agree with the proposed tax adjustments made by the tax authority, and filed the petition of administration. Please refer to Note 9(b) for details.

(t) Share capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the nine months ended September 30, 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 September 30, 2021, December 31 and September 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. 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:
September 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 - Difference between consideration and carrying amount of subsidiaries acquired or disposed of 404 $ 1,488,063	December 31, 2020 611,272 33,352 843,035 143 - 1,487,802	September 30, 2020
		611,272 33,352 843,035 143 -
		1,487,802

(iii) Retained earnings

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

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) Special reserve

In accordance with Ruling NO.1010012865 issued by the FSC on April 6, 2012, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders' equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders' equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions.

(Continued)

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

The Company decided to set aside $7,028 thousand special reserve in the shareholders' meeting on June 22, 2020. The aforementioned information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

2) 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.

These earnings are appropriated as follows:

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

(iv) Treasury shares

For the nine month ended September 30, 2020, in accordance with the requirements under section 28(2) of the Securities and Exchange Act, the Company repurchased 9,130 thousand shares as treasury shares in order to protect the Company’s integrity and shareholders’ equity. As of September 30, 2020, a total of 9,130 thousand shares were cancelled .

In accordance with the requirements of Securities and Exchange Act, treasury shares held by the Company should not be pledged, and do not hold any shareholder rights before their transfer.

(v) 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 Difference between consideration and carrying amount of subsidiaries acquired or disposed of Changes in equity of associates and joint ventures accounted for using equity method Changes in non-controlling interest Cash dividends paid to non-controlling interests Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance on September 30, 2021	Exchange Differences on Translation of Foreign Financial Statements $ 32,198 - (116,198) - - - - - - $ (84,000)	Unrealized Gains (Losses) from Financial Assets Measured at FVOCI 93,833 - - (17,001) - - - - (3,106) 73,726	Non-controlling Interest 3,975,678 253,770 (31,094) 30 (404) 842 (66,576) (242,675) - 3,889,571	Total 4,101,709 253,770 (147,292) (16,971) (404) 842 (66,576) (242,675) (3,106)
				3,879,297

(Continued)

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

Balance on January 1, 2020 Profit attributable to non-controlling interests Exchange differences on foreign operations Unrealized gain on financial assets measured at FVOCI Difference between consideration and carrying amount of subsidiaries disposed of Changes in non-controlling interest Cash dividends paid to non-controlling interests Balance on September 30, 2020	Exchange Differences on Translation of Foreign Financial Statements $ (143,749) - (61,952) - - - - $ (205,701)	Unrealized Gains (Losses) from Financial Assets Measured at FVOCI 87,640 - - (1,144) - - - 86,496	Non-controlling Interest 3,852,894 62,035 (19,063) (11) 676 1,924 (127,308) 3,771,147	Total 3,796,785 62,035 (81,015) (1,155) 676 1,924 (127,308)
				3,651,942

(u) Earnings per share

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

For the Three Months Ended September 30 2021 2020 $ 300,479 126,185 376,122 381,355 $ 0.80 0.33 $ 300,479 126,185 376,122 381,355 519 115 376,641 381,470 $ 0.80 0.33	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 300,479 376,122 $ 0.80 $ 300,479 376,122 519 376,641 $ 0.80	2021 531,794 376,122 1.41 531,794 376,122 688 376,810 1.41	2020 138,987
		381,355
		0.36
		138,987
		381,355 341
		381,696
		0.36

(Continued)

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

(v) Revenue from contracts with customers

(i) Disaggregation of revenue

For the Three Months Ended September 30, 2021	For the Three Months Ended September 30, 2021	For the Three Months Ended September 30, 2021	For the Three Months Ended September 30, 2021
Metal Manufacturing Segment Real Estate Development Segment Lifestyle Hospitality Segment Total $ 197,664 2,311,720 102,366 2,611,750 479,361 - - 479,361 410,896 - - 410,896 1,655,595 - - 1,655,595 117,744 - - 117,744 132,780 - - 132,780 170,246 - - 170,246 $ 3,164,286 2,311,720 102,366 5,578,372 $ 3,120,511 - - 3,120,511 - 2,307,616 - 2,307,616 - - 76,773 76,773 43,775 4,104 25,593 73,472 $ 3,164,286 2,311,720 102,366 5,578,372 For the Three Months Ended September 30, 2020			Total
			2,611,750 479,361 410,896 1,655,595 117,744 132,780 170,246
			5,578,372
			3,120,511 2,307,616 76,773 73,472
			5,578,372
Metal Manufacturing Segment $ 163,834 521,023 211,626 1,630,157 61,374 11,625 39,792 $ 2,639,431	Real Estate Development Segment	Lifestyle Hospitality Segment 162,401 - - - - - - 162,401	Total
	564,564 - - - - - -		890,799 521,023 211,626 1,630,157 61,374 11,625 39,792
	564,564		3,366,396

(Continued)

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

For the Three Months Ended September 30, 2020	For the Three Months Ended September 30, 2020	For the Three Months Ended September 30, 2020	For the Three Months Ended September 30, 2020
Metal Manufacturing Segment Real Estate Development Segment Lifestyle Hospitality Segment Total $ 2,622,723 - - 2,622,723 - 561,190 - 561,190 - - 88,694 88,694 16,708 3,374 73,707 93,789 $ 2,639,431 564,564 162,401 3,366,396 For the Nine Months Ended September 30, 2021			Total
			2,622,723 561,190 88,694 93,789
			3,366,396
Metal Manufacturing Segment $ 574,259 1,357,472 1,221,480 4,905,819 326,464 487,778 368,837 $ 9,242,109 $ 9,172,028 - - 70,081 $ 9,242,109	Real Estate Development Segment	Lifestyle Hospitality Segment 366,378 - - - - - - 366,378 - - 227,378 139,000 366,378	Total
	2,888,401 - - - - - -		3,829,038 1,357,472 1,221,480 4,905,819 326,464 487,778 368,837
	2,888,401		12,496,888
	- 2,876,624 - 11,777		9,172,028 2,876,624 227,378 220,858
	2,888,401		12,496,888

(Continued)

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

			For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
			Metal		Real Estate	Lifestyle
		Manufacturing		Development		Hospitality
		Segment			Segment	Segment			Total
Major geographic markets:
	Taiwan	$	394,871		586,974		446,152		1,427,997
	United States		1,278,315		-		-		1,278,315
	Japan		791,611		-		-		791,611
	China		4,044,774		-		-		4,044,774
	Europe		178,968		-		-		178,968
	South America		28,212		-		-		28,212
	Others		224,647		-		-		224,647
		$	6,941,398		586,974		446,152		7,974,524
Major product/service lines:
	Iron casting hardware	$	6,903,740		-		-		6,903,740
	Construction		-		576,678		-		576,678
	Counter commissions		-		-		253,747		253,747
	Others		37,658		10,296		192,405		240,359
		$	6,941,398		586,974		446,152		7,974,524
)	Contract balances
			September 30, December				31,	September 30,
			2021			2020			2020
	Notes and accounts receivable		$ 3,843,631			3,821,230			3,519,111
	Less: Loss allowance				(4,716)	(3,120)			(14,355)
	Total		$ 3,838,915			3,818,110			3,504,756
	Contract assets		$	-		-			-
	Contract liabilities–Advance real		$ 3,719,099			2,443,869			2,273,969
	estate receipts
	Contract liabilities–Advance receipts		$		46,974	49,115			43,393

(ii) Contract balances

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

The amount of revenue recognized for the nine months ended September 30, 2021 and 2020, that were included in the contract liabilities balance at the beginning of the period were $486,769 and $1,045 thousand, respectively.

(Continued)

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

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

(w) Employees' compensation and remuneration of directors

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

For the three months and nine months ended September 30, 2021 and 2020, appropriated employees’ compensation by $9,546 thousand, $3,644 thousand, $16,415 thousand and $3,844 thousand, respectively, and appropriated remuneration of directors by $8,524 thousand, $3,503 thousand, $14,657 thousand and $3,696 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.

(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 September 30 2021 2020 $ - 1,907	For the Nine Months Ended September 30 2021 2020 - 5,768	For the Nine Months Ended September 30 2021 2020 - 5,768
	2021 $ -		2020
			5,768

(Continued)

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

(y) Non-operating income and expenses

(i) Interest income

The information on interest income is listed as follows:

For the Three Months Ended September 30 2021 2020 $ 13,432 5,592 3,512 3,405 $ 16,944 8,997	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 13,432 3,512 $ 16,944	2021 35,550 10,426 45,976	2020
		26,363 9,979
		36,342

(ii) Other income

The information on other income is listed as follows:

For the Three Months Ended September 30 2021 2020 $ 1,088 2,577 4,489 3,064 51,396 17,550 $ 56,973 23,191	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 1,088 4,489 51,396 $ 56,973	2021 14,600 14,423 92,722 121,745	2020
		30,167 10,670 42,482
		83,319

(iii) Other gains and losses

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

For the Three Months Ended September 30 2021 2020 $ (1,127) (141) 443 (27,440) - - - - (7,941) (1,008) $ (8,625) (28,589)	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ (1,127) 443 - - (7,941) $ (8,625)	2021 (4,659) (13,287) - (5,013) (10,568) (33,527)	2020
		5,355 (8,873 (6,000 - (26,088
		(35,606

(Continued)

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

(iv) Finance costs

The information on interest costs is listed as follows:

For the Three Months Ended September 30 2021 2020 $ 64,284 58,165 6,015 6,635 429 449 $ 70,728 65,249	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 64,284 6,015 429 $ 70,728	2021 170,074 18,531 1,280 189,885	2020
		188,932 20,486 1,316
		210,734

For the three months and nine months ended September 30, 2021 and 2020, the capitalized interest costs amounted to $11,014 thousand, $11,914 thousand, $37,363 thousand and $33,627 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.

(i) Credit risk

1) Credit risk exposure

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

2) Concentration of credit risk

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

3) Credit risks of receivables and debt securities

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

All of these financial assets mentioned above are considered to be low risk, therefore, the impairment provision recognized during the period was limited to 12 months expected losses. For the allowance of impairment on financial assets for the nine months ended September 30, 2021 and 2020, please refer to Note 6(c).

(Continued)

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

(ii) Liquidity risk

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

Contractual Cash Flow September 30, 2021 Non-derivative financial liabilities Bank borrowings $ 21,573,007 Lease liabilities 2,098,751 Notes and accounts payables (including related parties) 3,074,671 Other payables (including related parties) 1,763,482 $ 28,509,911 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 September 30, 2020 Non-derivative financial liabilities Bank borrowings $ 20,731,172 Lease liabilities 2,293,693 Notes and accounts payables (including related parties) 2,165,279 Other payables (including related parties) 978,319 $ 26,168,463	Within 6 Months 4,701,287 101,218 3,074,671 1,763,482 9,640,658 2,626,081 107,124 2,663,292 1,452,641 6,849,138 6,551,529 105,957 2,165,279 978,319 9,801,084	6-12 Months 1,906,952 99,332 - - 2,006,284 1,895,083 101,805 - - 1,996,888 1,129,592 104,850 - - 1,234,442	1-2 Years 11,638,871 196,306 - - 11,835,177 8,906,212 195,978 - - 9,102,190 10,020,781 195,129 - - 10,215,910	2-5 Years 3,325,897 603,816 - - 3,929,713 6,101,100 594,921 - - 6,696,021 2,996,566 590,507 - - 3,587,073	Over 5 Years
					- 1,098,079 - -
					1,098,079
					30,673 1,247,457 - -
					1,278,130
					32,704 1,297,250 - -
					1,329,954

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

(Continued)

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

(iii) Currency risk

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

September 30, 2021 Foreign Currency Exchange Rate NTD Financial assets Monetary items USD:NTD $ 23,969 27.85 667,532 USD:CNY 142,006 6.46 3,954,860 USD:JPY 1,589 111.85 44,242 EUR:NTD 2,201 32.32 71,127 EUR:CNY 2,423 7.50 78,299 JPY:NTD 146,940 0.25 36,588 JPY:CNY 157,358 0.06 39,182 HKD:USD 2,306 0.13 8,256 Financial liabilities Monetary items USD:NTD 46 27.85 1,272 USD:CNY 161,984 6.46 4,511,257 EUR:CNY 1,204 7.50 38,903 HKD:USD 355,040 0.13 1,199,443	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	September 30, 2020	September 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	Foreign Currency 31,866 110,627 864 919 954 53,589 54,835 7,906 1,021 133,056 1,655 335,040	Exchange Rate NTD 29.10 927,300 6.81 3,219,239 105.59 25,148 34.15 31,382 8.00 32,596 0.28 14,769 0.06 15,113 0.13 29,649 29.10 29,723 6.81 3,871,939 8.00 56,508 0.13 1,256,400

1) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, borrowings, accounts payable and other payables that are denominated in foreign currency. A 1% of appreciation or depreciation of each major foreign currency against the Group’s functional currency as of September 30, 2021 and 2020 would have increased (decreased) the after-tax net income for the three months and nine months ended September 30, 2021 and 2020 by $(519) thousand, $(2,107) thousand, $(5,105) thousand and $(5,516) thousand, respectively. The analysis assumes that all other variables remain constant and was performed on the same basis for both periods.

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. For the three months and nine months ended September 30, 2021 and 2020, the foreign exchange gains (losses), including both realized and unrealized, amounted to $443 thousand, $(27,440) thousand, $(13,287) thousand and $(8,873) thousand, respectively.

(Continued)

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

(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 $29,922 thousand, $33,647 thousand, $84,354 thousand and $94,043 thousand for the three months and nine months ended September 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:

For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 Other Comprehensive Income (net of tax) Net Income (Loss) (net of tax) $ 21,095 - $ (21,095) -	2020
Other Comprehensive Income (net of tax) $ 21,095 $ (21,095)	Other Comprehensive Income (net of tax) 25,018 (25,018)	Net Income (Loss) (net of tax)
		-
		-

(vi) Fair value of financial instruments

1) Fair value hierarchy

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

(Continued)

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

	September 30, 2021	September 30, 2021	September 30, 2021
Book Value $ 210,945 $ 10,543,667 $ 27,868,249		Fair Value
	Level 1 Level 2 Level 3 36,901 - 174,044 - - - - - - December 31, 2020			Total
				210,945
				-
				-

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

Book Value $ 250,179 $ 9,670,122 $ 25,480,658		Fair Value
	Level 1 55,355 - -	Level 2 - - -	Level 3 194,824 - -	Total
				250,179
				-
				-

2) Valuation techniques for financial instruments measured at fair value

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

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

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

(Continued)

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

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 nine months ended September 30, 2021 and 2020.

4) 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		(19,946)
Captial reduction		(834)
Balance on September 30, 2021	$	174,044
Balance on January 1, 2020	$	216,065
Capital reduction		(21,241)
Balance on September 30, 2020	$	194,824

(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 September 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 September 30 2021 2020 $ (6,386) (1,155)	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 $ (6,386)	2021 (19,946)	2020 (1,155)

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

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

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

Quantified information regarding significant unobservable inputs are as follows:

Item	Valuation Technique Dividend discount model	Significant Unobservable Inputs Inter-relationship between Significant Unobservable Inputs and Fair Value Measurement ‧Average expected future dividend income of 5 years (As of September 30, 2021,December 31 and September 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 Dividend discount model	Significant Unobservable Inputs Inter-relationship between Significant Unobservable Inputs and Fair Value Measurement ‧Weighted average capital cost (As of September 30, 2021, December 31 and September 30, 2020, were 4.38%,4.70% and 4.64%, respectively.) ‧Discounting rate without market liquidity (As of September 30, 2021,December 31 and September 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.
Financial assets at FVOCI equity investments without active market

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

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

September 30, 2021 Financial assets at FVOCI Equity investments without an active market December 31, 2020 Financial assets at FVOCI Equity investments without an active market September 30, 2020 Financial assets at FVOCI Equity investments without an active market	Inputs % 4.38 % 4.70 % 4.64	Fluctuation in Inputs 1% 1% 1%	Other Comprehensive Income Favorable Unfavorable 6,407 (6,087) 6,755 (6,421) 6,827 (6,489)

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 nine month ended September 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 1,072,667 Cash flows 151,467	Non-cash changes Reclassification (26,374) Non-cash changes Reclassification (11,347)	September 30, 2021
				1,954,087
				September 30, 2020
				1,045,308

(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))

(Continued)

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

Name of Related Party

Beyond Fitness Co., Ltd. (Beyond Fitness)

Fuzhou Aprec Mechanical and Electrical Co., Ltd. (Fuzhou Aprec)

Advancision Corporation (Advancision) Chain-Yuan Investment Co., Ltd. (Chain-Yuan Investment) San Lien Technology Corp. (San Lien Technology) Kemitek Industrial Corp. (Kemitek Industrial) CMP PUJEN Foundation for Arts and Culture (Foundation) San Lien Educational Foundation (San Lien Foundation) Pu Yuan Construction Co., Ltd. (Pu Yuan Construction) Hao Bao Investment Co., Ltd. (Hao Bao Investment) Rui Hua Investment Co., Ltd. (Rui Hua Investment) Gee Lien Resource Development Corp. (Gee Lien Resource) Yi-Shi Investment Corporation (Yi-Shi) Meteorological Application and Development Foundation (MADF) Mr. Ming Shiann, Ho Mr. Chung Chieh, Liu Mr. Ting Fung, Lin

Relationship with the Group Associate of subsidiaries Subsidiaries of subsidiaries' associates

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

Other related parties Other related parties 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 For the Nine Months Ended September 30 2021 2020 8,166 3,123 381 32 392 195 8,939 3,350	nd Accounts Rec	eivables
For the Three Months Ended September 30 2021 2020 $ 3,416 1,132 39 26 187 131 $ 3,642 1,289		December 31, 2020 797 - 182 979	September 30, 2020
2021	2021 8,166 381 392 8,939
$ 3,416 39 187 $ 3,642			808 - 56
			864

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

(Continued)

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

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

Revenue	recognized For the Nine Months Ended September 30 2021 2020 - -	nce real estate receipts	nce real estate receipts
For the Three Months Ended September 30 2021 2020 $ - -		December 31, 2020 9,300	September 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.

(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 September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 28,272 11,175 92,407 38,118 - (3) - 17 1,242 409 1,242 3,383 $ 29,514 11,581 93,649 41,518	Notes and Accounts Payable	Notes and Accounts Payable	Notes and Accounts Payable
For the Three Months Ended September 30 2021 2020 $ 28,272 11,175 - (3) 1,242 409 $ 29,514 11,581	September 30, 2021 30,816 - 1,086 31,902	December 31, 2020 26,026 - 641 26,667	September 30, 2020
2021
$ 28,272 - 1,242 $ 29,514			21,368 - 1,024
			22,392

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:

Joint ventures Other related parties: Mr. Ming Shiann, Ho Others	Rental Expenses	Rental Expenses
	For the Three Months Ended September 30 2021 2020 $ 30 - 608 598 161 15 $ 799 613	For the Nine Months Ended September 30 2021 2020 90 - 1,824 1,754 437 45 2,351 1,799
	2021 $ 30 608 161 $ 799

(Continued)

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

Guarantee Deposit Paid (Recognized under other current and non-current financial assets)	Guarantee Deposit Paid (Recognized under other current and non-current financial assets)	Guarantee Deposit Paid (Recognized under other current and non-current financial assets)
September 30, 2021 $ 443	December 31, 2020 443	September 30, 2020
		443

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

Rental Revenues	Rental Revenues	Rental Revenues	Rental Revenues
For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 66 66 197 218 239 320 804 962 $ 305 386 1,001 1,180 Guarantee Deposit Received (Recognized under other non-current liabilities) September 30, 2021 December 31, 2020 September 30, 2020 300 300 300		For the Nine Months Ended September 30
			2020
			218 962
			1,180
September 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:

Service Revenues	Service Revenues	Service Revenues
For the Three Months Ended September 30 2021 2020 $ 75 79 1,345 1,607 $ 1,420 1,686	For the Nine Months Ended September 30 2021 2020 225 230 4,192 5,432 4,417 5,662
2021 $ 75 1,345 $ 1,420		2020
		230 5,432
		5,662

(v) Non-performing receivables

Joint ventures: The Splendor Hospitality		Total Claims
	September 30, 2021 $ 796,845	December 31, 2020 796,845	September 30, 2020 796,845

(Continued)

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

Joint ventures: The Splendor Hospitality		Costs of Claims
	September 30, 2021 $ 575,000	December 31, 2020 575,000	September 30, 2020
			575,000

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

(vi) Guarantees and endorsements

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

Borrowing Limits	Borrowing Limits
September 30, 2021 December 31, 2020 September 30, 2020 $ 1,950,000 1,900,000 1,900,000 45,680 45,680 45,680 $ 1,995,680 1,945,680 1,945,680 Actual Usage Amount		September 30, 2020
		1,900,000 45,680
		1,945,680
	December 31, 2020 1,620,000 45,680 1,665,680	September 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

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

Other related parties	For the Three Months Ended September 30 2021 2020 $ - 226	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 $ -	2021 172	2020
			1,714

(Continued)

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

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

Other related parties	September 30, 2021 $ 336	December 31, 2020 318	September 30, 2020
			230

3) In the third quarter of 2021, the Group purchased a total of 13 thousand shares from its other related parties at the amount of $1,904 thousand.

(ix) Other transactions

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

Donation For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,500 3,720 5,060 3,735	Donation For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,500 3,720 5,060 3,735	Donation For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,500 3,720 5,060 3,735
For the Three Months Ended September 30 2021 2020 $ 2,500 3,720
2021 $ 2,500	2021 5,060	2020
		3,735

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

	Management Service Expenses	Management Service Expenses
	For the Nine Months Ended September 30
2021 $ 3,500	2021 3,500	2020
		3,500

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

	Other Expenses	Other Expenses
	For the Nine Months Ended September 30
2021 $ 1 238 - $ 239	2021 2 247 42 291	2020
		- 33 89
		122

(Continued)

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

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 September 30 2021 2020 $ 3,429 3,323 84 82 $ 3,513 3,405	For the Nine Months Ended September 30
2021 $ 3,429 84 $ 3,513	2021 10,177 249 10,426	2020
		9,736 243
		9,979

5) Other receivables and advance payments from related parties

Associates: Keng-Hsin Urban Renewal Others Joint ventures Other related parties	Other Receivables (including advance payments) September 30, 2021 December 31, 2020 September 30, 2020 $ 28,760 35,114 39,052 95 95 100 125 77 84 3 122 177 $ 28,983 35,408 39,413	Other Receivables (including advance payments) September 30, 2021 December 31, 2020 September 30, 2020 $ 28,760 35,114 39,052 95 95 100 125 77 84 3 122 177 $ 28,983 35,408 39,413	Other Receivables (including advance payments) September 30, 2021 December 31, 2020 September 30, 2020 $ 28,760 35,114 39,052 95 95 100 125 77 84 3 122 177 $ 28,983 35,408 39,413
		December 31, 2020 35,114 95 77 122 35,408	September 30, 2020 39,052 100 84 177 39,413

6) Other payables and advance receipts from related parties

Other Payables (including advance receipts)	Other Payables (including advance receipts)	Other Payables (including advance receipts)
September 30, 2021 $ 140,005 46 - - $ 140,051	December 31, 2020 8,384 2,514 25 85 11,008	September 30, 2020
		18,565 40 260 -
		18,865

(Continued)

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

(d) Key management transactions

The compensation of key management is as follows:

For the Three Months Ended September 30 2021 2020 $ 25,106 29,904 (133) 2,223 $ 24,973 32,127	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2021 $ 25,106 (133) $ 24,973	2021 81,141 813 81,954	2020
		65,506 2,624
		68,130

(8) Pledged assets

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

Pledged Assets	Object	September 30, 2021 $ 1,424,715 307,952 635,451 6,936,925 6,502,814 1,863,413 28,218 1,337,851 $ 19,037,339	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	September 30, 2020 1,424,638 323,424 637,722 5,852,644 5,568,460 3,512,033 17,709 632,891
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
				17,969,521

(9) Significant commitments and contingencies

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

Total contract price Total amounts paid under contracts (Note)	September 30, 2021 $ 13,481,164 $ 6,994,460	December 31, 2020 11,020,485 3,787,659	September 30, 2020
			9,368,670
			2,453,520

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

(Continued)

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

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

Total contract price Total amounts received under contracts (recognized under current contract liabilities)	September 30, 2021 $ 17,400,101 $ 3,376,000	December 31, 2020 15,265,856 2,434,499	September 30, 2020
			12,622,094
			2,082,955

	contract liabilities) $ 3,376,000	contract liabilities) $ 3,376,000	contract liabilities) $ 3,376,000	contract liabilities) $ 3,376,000	2,434,499	2,082,955
(iii)	The Group’s purchase contracts of building capacity is as				follows:
				September 30,	December 31,	September 30,
				2021	2020	2020
	Total contract price		$	200,944	200,944	200,944
	Total amounts paid under contracts
	(recognized under prepayments)		$	116,570	116,570	116,570
(iv)	The Group’s security deposits paid to landlords for joint construction projects					is as follows:
				September 30,	December 31,	September 30,
				2021	2020	2020
	Security deposits of joint construction
	projects	(recognized under other
	current and non-current
	financial assets)		$	378,725	352,223	335,327
(v)	The Group’s security deposits for renting real estates is as				follows:
				September 30,	December 31,	September 30,
				2021	2020	2020
	Security deposits (recognized under
	other current and non-current
	financial assets)		$	99,282	97,289	97,289
(vi)	The Group’s unrecognized contractual		commitments for purchasing land is as			follows:
				September 30,	December 31,	September 30,
				2021	2020	2020
	Total contract price		$	338,842	283,842	373,842
	Total amounts paid under contracts
	(recognized under inventories—
	prepayments for land)		$	180,245	166,995	131,099

(Continued)

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

(vii) The Group and The Presbyterian Church in Taiwan entered into an real estate leasing contract, with the contract term of 40 years, commencing the day after the signing date, September 30, 2016. For the development of the leasing real estates, the Group agreed to pay development royalty amounting to $126,000 thousand. As of September 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.
(viii) The Group entered into various services agreement with InterContinental Hotels Group for its hotel operation, including planning, constructing and building, as well as during the preopening phase, and the period from the pre-opening phase to the opening day and fifteen years afterwards. According to the contract, the fees shall either be paid based on the services rendered, or be calculated in accordance with certain ratio of the gross revenue for the fiscal year or each accounting period.
(b) Contingencies
(i) Please refer to Note 7 for the Group’s guarantees and endorsements for related parties' loans as of September 30, 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 Issue Current Status The Filing a petition for the Company administrative penalty of the value-added tax in the Daguangsan real estate transaction which was approved by National Taxation Bureau of Taipei the lawsuit has now been suspended. Sunflower Since 2011, Sunflower Investment Investment had received several administrative penalties approved by National Tax Bureau of Taipei which arose from the withholding tax, valueadded tax, enterprise income tax and undistributed earning tax of the Daguangsan nonperforming receivables. Sunflower Investment has sought administrative remedy for the aforementioned verdict.

National 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).

(Continued)

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

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(12) Other:

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

By function By item		For the Three Months Ended Sept	For the Three Months Ended Sept	For the Three Months Ended Sept	ember 30
		2021			2020
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	177,620	182,907	360,527	158,729	150,006	308,735
Labor and health insurance	15,048	12,813	27,861	15,460	12,978	28,438
Pension	11,805	9,392	21,197	969	4,233	5,202
Others	24,279	11,626	35,905	18,528	10,796	29,324
Depreciation	168,281	73,032	241,313	172,029	65,635	237,664
Amortization	328	1,023	1,351	464	836	1,300

By function By item		For the Nine Months		Ended September 30
		2021		2020
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits
Salary	529,546	477,451	1,006,997	458,066	421,543	879,609
Labor and health insurance	44,523	36,891	81,414	34,818	30,890	65,708
Pension	34,282	26,288	60,570	15,537	17,547	33,084
Others	58,215	34,351	92,566	48,343	30,098	78,441
Depreciation	500,245	220,202	720,447	503,337	209,507	712,844
Amortization	1,141	2,576	3,717	1,389	10,244	11,633

(Continued)

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

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions for the nine months ended September 30, 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	Allowance for Doubtful Accounts	Collateral	Collateral	Financing Limit for Each Borrower (Note 3)	Aggregate Financing Limit (Note 4)
													Item	Value
0	The Company	The Hotel National	Accounts receivable due from related parties	Yes	106,615	53,000	-	1.15%	2	-	Operation requirements	-		-	3,613,187	4,817,583
1	Tianjin CMT	Suzhou CMB	Accounts receivable due from related parties	Yes	219,000	107,750	107,750	0.75%	2	-	Operation requirements	-		-	319,835	426,447
1	Tianjin CMT	CMW (Tianjin)	Accounts receivable due from related parties	Yes	197,100	-	-	0.75%	2	-	Operation requirements	-		-	319,835	426,447
1	Tianjin CMT	CMH	Accounts receivable due from related parties	Yes	301,000	301,700	301,700	0.75%	2	-	Operation requirements	-		-	319,835	426,447
2	Suzhou CMS	CMH	Accounts receivable due from related parties	Yes	437,000	431,000	431,000	0.75%	2	-	Operation requirements	-		-	1,209,239	1,612,319
3	CMAI	Pilot	Accounts receivable due from related parties	Yes	40,383	40,383	40,383	0.17%	2	-	Operation requirements	-		-	42,037	56,049

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	4,817,583	220,000	110,000	70,000	-	% 0.91	6,021,979	Y	N	N
0	The Company	The Hotel National	1	4,817,583	100,000	50,000	20,000	-	% 0.42	6,021,979	Y	N	N
0	The Company	Shangrila Tourism	1	4,817,583	902,500	652,500	392,000	-	% 5.42	6,021,979	Y	N	N
0	The Company	The Splendor Hospitality	2	4,817,583	2,150,000	1,950,000	1,655,000	-	% 16.19	6,021,979	N	N	N
0	The Company	CMAAN Health	2	4,817,583	45,680	45,680	36,726	-	% 0.38	6,021,979	N	N	N
1	CMAI N.A.	Pilot	4	50,608	47,228	-	-	-	% -	50,608	N	N	N
2	CMI	UEA	3	3,881,463	1,229,597	1,199,443	1,199,443	-	% 12.36	4,851,828	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 September 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	116,122	% 3.12	116,122
The Company	YUHUA Venture Capital Co., Ltd.	-	Non-current financial assets at FVOCI	4,999	215	% 1.25	215
The Company	FUHUA Venture Capital Co., Ltd.	-	Non-current financial assets at FVOCI	5,000	754	% 1.67	754
The Company	GUANGYUAN Investment Co., Ltd.	-	Non-current financial assets at FVOCI	3,750,000	32,749	% 3.91	32,749
The Company	DEVELOPMENT Venture Capital Co., Ltd.	The Company is the legal person	Non-current financial assets at FVOCI	4,400,000	24,204	% 4.00	24,204
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	36,901	% 0.14	36,901
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:

(In Thousands of NTD)

Name of Company	Type of Property	Transaction Date	Transaction Amount	Amount Paid	Counter-party	Nature of Relationship	Prior Transaction with Related Party	Prior Transaction with Related Party	Prior Transaction with Related Party	Prior Transaction with Related Party	Price Reference	Purpose of Acquisition and Current Condition	Others
							Owner	Relationship	Transfer Date	Amount
PUJEN Land Development	No. 81、81-3、 81-4、81-2 ,Sec.2 , Fulin Rd., Shilin Dist., Taipei City,Taiwan (R.O.C)	May 19, 2021	$ 1,249,741	Fully paid-up	EVERRICH BUILD CO., LTD.、 Rision Industrial Co., Ltd.	-	-	-	-	-	The appraisal reports and market price	Acquired land for development and construction	None

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

(Continued)

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

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

(In Thousands of NTD)

									(In Thousands of	(In Thousands of	NTD)
Name of Company	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others		Notes/Accounts Receivable (Payable)		Note
			Purchase/Sale	Amount	Percentage of Total Purchases/Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/Accounts Receivable (Payable)
Suzhou CMS	CMI S	ubsidiaries	Sale	1,047,084	% 40.17	180 days	-	-	1,788,103	74.54%
Suzhou CMB	CMI S	ubsidiaries	Sale	106,086	% 7.64	180 days	-	-	141,058	18.11%
CMW (Tianjin)	CMW (C.I.) S	ubsidiaries	Sale	1,255,748	% 37.87	180 days	-	-	2,097,714	65.11%

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

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

(In Thousands of NTD/In CNY)

Name of Company	Counter-party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
CMI	CMB (H.K.)	Parent company	Accounts receivable due from related parties, other 186,022	-	-	-	-	-
CMW (C.I.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 2,596,710	-	-	-	CNY 30,289,500	-
CMP (H.K.)	CMI	Subsidiaries	Accounts receivable due from related parties, other 348,158	-	-	-	-	-
CMW (Tianjin)	CMW (C.I.)	Subsidiaries	Accounts receivable due from related parties 2,097,714	0.88	-	-	CNY 30,013,017	-
Tianjin CMT	CMI	Subsidiaries	Accounts receivable due from related parties 263,018	-	-	-	-	-
Tianjin CMT	Suzhou CMB	Affiliates	Accounts receivable due from related parties, other 107,750	-	-	-	-	-
Tianjin CMT	CMH	Affiliates	Accounts receivable due from related parties, other 301,700	-	-		-	-
Suzhou CMS	CMI	Subsidiaries	Accounts receivable due from related parties 1,788,103	0.89	-	-	CNY 44,565,614	-
Suzhou CMS	CMH	Affiliates	Accounts receivable due from related parties, other 431,000	-	-		-	-
Suzhou CMB	CMI	Subsidiaries	Accounts receivable due from related parties 141,058	1.21	-		CNY 5,363,274	-
PUJEN	CHINGENG Land Development	Parent company	Accounts receivable due from relatedparties,other 119,700	-	-		-	-

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	32,729	60~90 days	0.26%
0	China Metal Products	CMJ	1	Operating revenue	22,436	90 days	0.18%
1	CMW (Tianjin)	CMW (C.I.)	2	Operating revenue	1,255,748	180 days	10.05%
3	Suzhou CMS	CMI	2	Operating revenue	1,047,084	180 days	8.38%
4	Suzhou CMB	Suzhou CMS	3	Operating revenue	63,290	90 days	0.51%
4	Suzhou CMB	CMI	2	Operating revenue	106,086	180 days	0.85%
4	Suzhou CMB	CMB(H.K.)	2	Operating revenue	30,251	180 days	0.24%
4	Suzhou CMB	Qingdao Sourcing Specialists	3	Operating revenue	19,043	90 days	0.15%
5	National Management	China Metal Products	2	Operating revenue	43,182	OA25 days	0.35%
7	CMW(C.I.)	CMAI	3	Operating revenue	20,243	90 days	0.16%
14	CMH	CMW (Tianjin)	3	Operating revenue	26,056	90 days	0.21%
14	CMH	Suzhou CMB	3	Operating revenue	66,049	90 days	0.53%
12	CMJ	CMI	3	Operating revenue	14,311	90~120 days	0.11%
13	CMAI(N.A.)	CMAI	2	Operating revenue	23,116	90~120 days	0.18%
0	China Metal Products	Atrans Precision	1	Accounts receivable due from related parties	17,891	60~90 days	0.04%

(Continued)

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

No. (Note 1)	Name of Company	Name of Counter-party	Nature of Relationship (Note 2)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)	Intercompany Transactions (Note 3)
				Account	Amount	Trading Terms	Percentage of the Total Consolidated Revenue or Total Assets (Note 4)
1	CMW(Tianjin)	CMW(C.I.)	2	Accounts receivable due from related parties	2,097,714	180 days	4.30%
2	Tanjin CMT	CMI	2	Accounts receivable due from related parties	263,018	180 days	0.54%
2	Tanjin CMT	CMW(Tianjin)	3	Accounts receivable due from related parties	42,864	90 days	0.09%
14	CMH	CMW(Tianjin)	3	Accounts receivable due from related parties	15,722	90 days	0.03%
14	CMH	Suzhou CMB	3	Accounts receivable due from related parties	68,121	90 days	0.14%
3	Suzhou CMS	CMI	2	Accounts receivable due from related parties	1,788,103	180 days	3.67%
4	Suzhou CMB	CMB(H.K)	2	Accounts receivable due from related parties	37,135	180 days	0.08%
4	Suzhou CMB	CMI	2	Accounts receivable due from related parties	141,058	180 days	0.29%
4	Suzhou CMB	Suzhou CMS	3	Accounts receivable due from related parties	29,332	90 days	0.06%
7	CMW(C.I.)	CMAI	3	Accounts receivable due from related parties	31,410	90 days	0.06%
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	107,750	-	0.22%
2	Tianjin CMT	CMH	3	Other receivables due from related parties	301,700	-	0.62%
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	186,022	-	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	2,596,710	-	5.32%
9	CMP(H.K.)	CMI	2	Other receivables due from related parties	348,158	-	0.71%
11	CMAI	Pilot	1	Other receivables due from related parties	40,383	-	0.08%
11	CMAI	CMAI(N.A.)	1	Other receivables due from related parties	12,908	-	0.03%
10	CHINGENG Land Development	PUJEN	2	Other receivables due from related parties	28,449	-	0.06%
15	PUJEN	CHINGENG Land Development	1	Other receivables due from related parties	119,700	-	0.25%
8	CMB (H.K.)	Suzhou CMB	1	Other long-term receivables due from related parties	24,253	-	0.05%

Note 1: For the inter-company business relationship and transaction condition in the “Number” column, the labeling method is as follows: 1. Parent company - 0. 2. Subsidiaries – In sequence from 1. Note 2: Relationship is classified into three types: 1. Parent company to subsidiary. 2. Subsidiary to parent company.

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 nine months ended September 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 September 30, 2021	Balance as of September 30, 2021	Balance as of September 30, 2021	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				September 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	6,991,792	425,884	425,884	Subsidiaries
The Company	Sunflower Investment	Taiwan	Investing	99,000	99,000	67,006,291	% 99.00	865,089	45,181	44,046	Subsidiaries
The Company	Atrans Precision	Taiwan	Vehicle parts processing	247,218	247,218	25,782,134	% 72.24	383,085	17,350	13,512	Subsidiaries
The Company	CMJ	Japan	Cast iron product retailing	4,887	4,887	500	% 83.33	96,402	33,772	28,142	Subsidiaries
The Company	CMAI	Hong Kong	Vehicle parts retailing	24,036	15,466	1,000,000	% 100.00	127,837	8,832	8,455	Subsidiaries
The Company	Pu Sheng Construction	Taiwan	Residents, commercial buildings and factories leasing and developing	-	30	-	% -	-	(17)	5,538	Subsidiaries
The Company	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	2,003,067	2,003,067	158,877,643	% 56.65	4,087,312	439,977	235,162	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)	(456)	-	Investees accounted for using equity method
The Company	The Hotel National	Taiwan	International tourist hotel services	1,515,952	1,305,233	5,000,000	% 100.00	903,179	(52,294)	(53,713)	Subsidiaries
The Company	National Management	Taiwan	Management and consulting services	10,000	10,000	1,000,000	% 100.00	8,776	(4,695)	(6,221)	Subsidiaries
The Company	The Splendor Hospitality	Taiwan	International tourist hotel services	975,000	975,000	97,500,000	% 50.00	170,563	(148,918)	(84,636)	Joint ventures accounted for using equity method
The Company	Shangrila Tourism	Taiwan	Amusement park and hotel services	559,470	359,470	22,131,840	% 97.65	416,307	(16,216)	(13,993)	Subsidiaries
The Company	CMAAN Health	Taiwan	Management and consulting services	50,000	50,000	5,000,000	% 50.00	42,116	8,333	4,523	Joint ventures accounted for using equity method
The Company	InterContinental Taichung	Taiwan	International tourist hotel services	88,800	300	8,880,000	% 100.00	88,647	(100)	(100)	Subsidiaries
The Company	Calligraphy Greenway Plaza Co., Ltd	Taiwan	Management and consulting services	59,000	30,000	5,900,000	% 100.00	60,579	113	1,639	Subsidiaries
Sunflower Investment	PUJEN Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	280,768	280,768	42,269,213	% 15.07	1,052,079	439,977	Exempt from disclosure	Subsidiaries of the Company
Sunflower Investment	Atrans Precision	Taiwan	Vehicle parts processing	77,836	77,836	4,737,380	% 13.27	69,860	17,350	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)	(456)	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	27,429	(27,561)	Exempt from disclosure	Investee accounted for using equity method
Sunflower investment	Fantasystory Inc.	Taiwan	Interior design, landscape design, and urban renewal	19,793	19,793	1,742,746	% 19.80	-	(5,557)	Exempt from disclosure	Investee accounted for using equity method
UEA	CMI	Cayman Islands	Investing in CMI (BVI) and cast iron product retailing	USD 136,536,250	USD 136,536,250	823,281,475	% 82.74	USD 292,668,892	USD 18,987,932	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 1,261,234,506	CNY 65,022,606	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 1,811,297,692	CNY 69,750,424	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 557,212,119	CNY (18,607,180)	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 1,264,020,197	CNY 65,020,606	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 2,479,913	USD (186,796)	Exempt from disclosure	Subsidiaries of CMAI
CMAI Holding	Pilot	USA	Assets leasing	USD 8,328,644	USD 8,328,644	-	% 100.00	USD 2,479,913	USD (186,796)	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 1,543,813	USD (273,357)	Exempt from disclosure	Subsidiaries of Pilot
Atrans Precision	FAR HSING (SAMOA)	SAMOA	Investing	USD 3,922,055	USD 3,922,055	3,922,055	% 100.00	118,965	(5,950)	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 4,130,893	USD (981,853)	Exempt from disclosure	Investees of FAR HSING (SAMOA) accounted for using equity method

(Continued)

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

Name of Investor	Name of Investee	Location	Main Businesses	Original Investment Amount	Original Investment Amount	Balance as of September 30, 2021	Balance as of September 30, 2021	Balance as of September 30, 2021	Net Income (Losses) of Investee	Share of Profits/Losses of Investee	Note
				September 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
PUJEN Land Development	Pu Sheng Construction	Taiwan	Residents, commercial buildings and factories leasing and developing	-	20	-	% -	-	(17)	Exempt from disclosure	Subsidiaries of the Company
PUJEN Land Development	Keng-Hsin Urban Renewal	Taiwan	Residents, commercial buildings and factories leasing and developing	250,928	250,928	32,864,188	% 30.00	336,656	84,813	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equity method
PUJEN Land Development	CHINGENG Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	72,500	72,500	7,250,000	% 50.00	97,444	56,179	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUJEN CHENGMEI Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	94,500	94,500	9,450,000	% 70.00	68,987	(112)	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	PUCHIA Land Development	Taiwan	Residents, commercial buildings and factories leasing and developing	50	35,000	5,000	% 50.00	9,449	33,159	Exempt from disclosure	Subsidiaries of PUJEN Land Development
PUJEN Land Development	Shangrila Tourism	Taiwan	Amusement park and hotel services	89,867	89,867	532,960	% 2.35	10,056	(16,216)	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	5,259	345	Exempt from disclosure	Joint ventures of PUJEN Land Development accounted for using equity method
PUJEN Land Development	Beyond Fitness	Taiwan	Sport training and other consulting service	4,050	4,050	405,000	% 36.82	2,641	(6,524)	Exempt from disclosure	Investees of PUJEN Land Development accounted for using equity method

(c) Information on investment in Mainland China:

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

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

Name of Investee	Main Businesses	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investme	nt Flows	Accumulated Outflow of Investment from Taiwan as of September 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	835,500 (USD30,000)	2	388,238	-	-	388,238	(12,941) (CNY(2,982))	82.74%	(10,696) (CNY(2,464))	1,066,118 (CNY247,359)	82,542
Suzhou CMS	Cast iron products, machine parts and vehicle parts designing, developing, manufacturing and selling	668,400 (USD24,000)	2	423,406	-	-	423,406	296,346 (CNY68,283)	82.74%	244,850 (CNY56,417)	4,031,559 (CNY935,397)	14,601
Suzhou CMB	Cast iron product designing, manufacturing and retailing	2,283,700 (USD82,000)	2	-	-	-	-	(70,098) (CNY(16,152))	82.74%	(57,936) (CNY13,349))	2,581,816 (CNY599,029)	-
CMW (Tianjin)	Vehicle parts, E&M as- casting and finished product developing, manufacturing and selling	891,200 (USD32,000)	2	-	-	-	-	323,894 (CNY74,630)	82.74%	271,991 (CNY62,671)	4,917,904 (CNY1,141,045)	-
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	891,200 (USD32,000)	2	-	-	-	-	(11,007) (CNY(2,536))	82.74%	(9,098) (CNY(2,096))	931,205 (CNY216,057)	-
Qingdao Sourcing Specialists	Cast iron product retailing	2,785 (USD100)	2	-	-	-	-	8,790 (JPY33,951)	83.33%	7,325 (JPY28,291)	50,206 (JPY201,632)	-

(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 September 30, 2021	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on Investment (Note 4)
811,644	5,810,095 (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 September 30, 2021, the company had obtained a surplus of $3,024,627 thousand (USD100,455 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.	52,854,965	% 14.05
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 September 30, 2021 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Three Months Ended September 30, 2020 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Nine Months Ended September 30, 2021 Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Nine Months Ended September 30, 2020 Revenue from external customers $ Intersegment revenues Total revenue $ Reportable segment profit or loss $	Metal Manufacturing Segment	Real Estate Development Segment 2,311,720 918 2,312,638 517,347 564,564 33,518 598,082 120,330 2,888,401 2,616 2,891,017 605,137 586,974 36,051 623,025 10,969	Lifestyle Hospitality Segment 102,366 15,860 118,226 (20,606) 162,401 20,891 183,292 8,294 366,378 53,516 419,894 (56,981) 446,152 58,168 504,320 (17,536)	Reconciliation and Elimination - (1,029,067) (1,029,067) (239,465) - (653,238) (653,238) (151,568) - (2,837,016) (2,837,016) (410,498) - (1,568,328) (1,568,328) (298,433)	Total
	$ 3,164,286 1,012,289 $ 4,176,575 $ 280,053 $ 2,639,431 598,829 $ 3,238,260 $ 248,355 $ 9,242,109 2,780,884 $ 12,022,993 $ 780,415 6,941,398 1,474,109 8,415,507 569,642				5,578,372 - 5,578,372 537,329 3,366,396 - 3,366,396 225,411 12,496,888 -
					12,496,888
					918,073
					7,974,524 - 7,974,524 264,642

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_8da5a250-7bbd-442c-b8b7-bdbeff3114f3.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 Nine Months Ended September 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 Nine Months Ended September 30, 2021 and 2020

CHINA METAL PRODUCTS CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Nine Months Ended September 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

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

(d) Inventories

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

(e) Investments accounted for using equity method

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

(g) Loss of control over a subsidiary

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

(h) Property, plant and equipment

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

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

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

(k) Intangible assets

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

(l) Other non-current financial assets

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

(m) Short-term borrowings

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

(n) Long-term borrowings

(i) Borrowing and repayment

(ii) Collateral for bank borrowings

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

(o) Lease liabilities

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

(ii) Other leases

(p) Provisions

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

(ii) Financial guarantee contracts

(iii) Legal

(q) Operating leases

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

(ii) Defined contribution plans

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

(s) Income tax

(t) Share capital and other equity

(i) Capital stock

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

(ii) Capital surplus

(iii) Retained earnings

1) Special reserve

CMP Interim / Quarterly Report 2021