CMT — Annual Report 2020

Dec 14, 2020

1

Stock Code:2612

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2020 and 2019

Address: 4F., NO15, Sec. 1, Jinan Rd., Taipei City, Taiwan (R.O.C) Telephone: (02)2396-3282

The independent auditors’ 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’ report and consolidated financial statements, the Chinese version shall prevail.

2

Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. 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) 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) Major shareholders (14) Segment information

Page

1 2 3 4 5 6 7 8 9 9 9～10 10～28 28～29 29～59 60～61 61 61 61 61 62 62～65 66 66 67 67～69

3

Representation Letter

The entities that are required to be included in the combined financial statements of Chinese Maritime Transport Ltd. as of and for the year ended December 31, 2020 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 endorsed by the Financial Supervisory Commission, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Chinese Maritime Transport Ltd. and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Chinese Maritime Transport Ltd. Chairman: PENG, William Shih-Hsiao Date: March 19, 2021

4

Independent Auditors’ Report

To the Board of Directors of CHINESE MARITIME TRANSPORT LTD.:

Opinion

We have audited the consolidated financial statements of CHINESE MARITIME TRANSPORT LTD. (“the Company”) and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2020 and 2019, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the report of other auditors (please refer to Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretation developed by the International Financial Reporting Interpretations Committee (“ IFRIC” ) or the former Standing Interpretations Committee (“ SIC” ) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“ the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis of our opinion.

Other Matter

We did not audit the financial statements of the investee which represented the investment accounted for using the equity method of the Group. Those statements were audited by another auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amount is based solely on the report of other auditors. The investment accounted for using the equity method constituting 5.34% of the total consolidated assets; and the related shares of profit of associates accounted for using the equity method constituted 16.54% of the total profit before tax for the years ended December 31, 2019.

The Company has prepared its parent-company-only financial statements as of and for the years ended December 31, 2020 and 2019, on which we have issued an unmodified opinion and an unmodified opinion with Emphasis of Other Matter, respectively, for reference.

4-1

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In our judgment, the key audit matters that should be communicated in the audit report are as follows:

1. Recognition of freight revenue–vessel chartering and container hauling

Please refer to Note(4)(o) for the accounting policy of “Revenue” and to Note (6) (q) for information details.

Description of key audit matters:

The main activities of the Group are bulk carrier operation through overseas subsidiaries, domestic container hauling and storage, and related business. Freight revenue vessel chartering and container hauling is one of the significant items in the consolidated financial statements, and the amounts and changes may affect the users’understanding on the entire financial statements. Therefore, the testing over freight revenue– vessel chartering and container hauling recognition is considered a key matter in our audit.

Audit Procedure:

Our principal audit procedures included: testing the related controls over the sale and receipts cycle, conducting the confirmation process used to examine the accounts receivable and revenue of major customers, executing substantive analytical procedures of freight revenue–vessel chartering, and assessing the contract liabilities, as well as evaluating whether the Group’s timing of revenue recognition is accurate in accordance with the related accounting standards.

1. Assessment of impairment on property, plant and equipment

Please refer to Note (4)(j) and Note (4)(m) for the accounting policies of impairment assessment of property, plant and equipment; Note (5)(a) for the assumptions and estimation uncertainty of impairment assessment of property, plant and equipment; and Note (6)(f) for the related disclosure of property, plant and equipment.

Description of key audit matters:

The main activities of the Group are bulk carrier operation, domestic container hauling and storage, and related business. The industry of the Group is affected by the variability of global economy and the highly competitive environment of shipping market, causing a drastic profit change in the shipping industry and posing a potential risk of impairment on transportation equipment of property, plant and equipment. Therefore, assessing whether an asset impairment incurs and conducting a test over the impairment are considered to be the key matters of our audit.

Audit Procedure:

Our principal audit procedures included: understanding and assessing the related policies, internal control and processing procedure of impairment assessment of the Company; evaluating the reasonability of discounting rate and external source information about estimating future cash flows, including reviewing the information source of the estimation; examining the input numbers of valuation model and equation, as well as recalculating and checking the correctness of the valuation model.

4-2

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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 with the IFRSs, IASs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Supervisors) are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

4-3

1. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Yiu-Kwan Au and JuiLan Lo.

KPMG

Taipei, Taiwan (Republic of China) March 19, 2021

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of 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 audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ audit 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’ audit report and consolidated financial statements, the Chinese version shall prevail.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note (6)(a)) 1110 Current financial assets at fair value through profit or loss (notes (6)(b) and (8)) 1150 Notes and accounts receivable, net (note (6)(d)) 1180 Accounts receivable due from related parties, net (notes (6)(d) and (7)) 1470 Other current assets 1476 Other current financial assets (notes (6)(i) and (8)) Non-current assets: 1510 Non-current financial assets at fair value through profit or loss (notes (6)(b) and (8)) 1517 Non-current financial assets at fair value through other comprehensive income (notes (6)(c) and (8)) 1550 Investments accounted for using equity method, net (notes (6)(e) and (8)) 1600 Property, plant and equipment (notes (6)(f) and (8)) 1755 Right-of-use assets (note (6)(g)) 1760 Investment property, net (note (6)(h)) 1780 Intangible assets 1840 Deferred tax assets (note (6)(n)) 1900 Other non-current assets 1980 Other non-current financial assets (notes (6)(i) and (8)) Total assets	December 31, 2020 Amount % $ 3,741,974 19 634,690 3 285,637 2 11,864 - 70,779 - 333,286 2 5,078,230 26 208,915 1 1,188,476 7 630,292 3 12,101,344 62 162,059 1 34,535 - 9,798 - 15,985 - 35,579 - 18,624 - 14,405,607 74 $ 19,483,837 100	December 31, 2019 Amount % 3,288,046 17 14,050 - 273,636 1 16,770 - 62,481 - 304,029 2 3,959,012 20 119,554 - 315,134 2 1,698,801 9 13,549,411 68 218,783 1 35,995 - 11,659 - 17,854 - 8,626 - 21,790 - 15,997,607 80 19,956,619 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note (6)(j)) 2130 Current contract liabilities (note (6)(q)) 2150 Notes and accounts payable 2200 Other payables 2230 Current tax liabilities 2280 Current lease liabilities (note (6)(k)) 2300 Other current liabilities 2320 Long-term liabilities, current portion (note (6)(j)) Non-Current liabilities: 2530 Bonds payable (note (6)(j)) 2540 Long-term borrowings (note (6)(j)) 2570 Deferred tax liabilities (note (6)(n)) 2580 Non-current lease liabilities (note (6)(k)) 2640 Net defined benefit liabilities, non-current (note (6)(m)) 2670 Other non-current liabilities, others Total liabilities Equity attributable to owners of parent: (note (6)(o)) 3100 Common stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated earnings 3400 Other equity interest Total equity Total liabilities and equity	December 31, 2020	December 31, 2020		December 31, 2019 Amount % 1,529,883 8 19,327 - 239,126 1 180,638 1 27,630 - 52,509 - 7,068 - 1,053,519 5 3,109,700 15 2,700,000 14 3,393,217 17 607,906 3 169,693 1 40,779 - 961 - 6,912,556 35 10,022,256 50 1,974,846 10 53,411 - 1,715,537 9 359,487 2 6,366,772 32 8,441,796 43 (535,690) (3) 9,934,363 50 19,956,619 100
			Amount	%

See accompanying notes to consolidated financial statements.

6

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars, Except earnings per share)

4000 Operating Revenues (notes (6)(q), (7) and (14)) 4621 Freight revenue-vessel chartering 4622 Freight revenue-container hauling and logistics 4623 Freight revenue-airline agent and others 5000 Operating costs (notes (6) (m), (s) and (12)) 5621 Freight cost-vessel chartering 5622 Freight cost-container hauling and logistics 5623 Freight cost-airline agent and others 5900 Gross profit Operating expenses: 6000 Operating expenses (notes (6)(m), (s), (7) and (12)) 6450 Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 (note (6)(d)) 6900 Net operating income Non-operating income and expenses: 7010 Other income (note (6)(l)) 7050 Finance costs (note (6)(r)) 7060 Share of profit (loss) of associates and joint ventures accounted for using equity method (note (6)(e)) 7100 Interest income 7210 Gains (losses) on disposal of property, plant and equipment, net (note (6)(f)) 7230 Foreign exchange gains or losses, net 7235 Gains (losses) on financial assets at fair value through profit or loss (note (6)(b)) 7590 Miscellaneous disbursements 7225 Losses on disposal of investments, net (note (6)(e)) 7900 Profit from continuing operations before tax 7950 Less: Income tax expenses (note (6)(n)) Profit (attributable to owners of parent) 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans (note (6)(m)) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (note (6)(c)) 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, items that may not be reclassified to profit or loss 8349 Income tax related to items that may not be reclassified to profit or loss (note (6)(n)) 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, items that may be reclassified to profit or loss 8399 Income tax related to items that may be reclassified to profit or loss (note (6)(n)) Total other comprehensive income that may be reclassified to profit or loss 8300 Other comprehensive income Comprehensive income (attributable to owners of parent) Earnings per share(note (6)(p)) 9750 Basic net income per share (NT dollars) 9850 Diluted net income per share (NT dollars)	2020	% 51 48 1 100 43 39 1 83 17 11 - 11 6 1 (5) 2 1 - - 14 - (7) 6 12 1 11 - 8 - - 8 (20) - - (20) (12) (1) 1.67 1.66	2019 Amount % 1,898,416 50 1,829,819 49 34,490 1 3,762,725 100 1,390,181 37 1,519,327 40 24,069 1 2,933,577 78 829,148 22 369,477 10 20 - 369,497 10 459,651 12 20,818 - (237,044) (6) 65,147 2 74,166 2 3,399 - (861) - (6,069) - (949) - - - (81,393) (2) 378,258 10 54,416 1 323,842 9 (4,277) - 22,158 - (1,408) - (855) - 17,328 - (243,373) (6) (34,453) (1) (179) - (277,647) (7) (260,319) (7) 63,523 2 1.64 1.64
	Amount $ 1,597,110 1,490,667 43,338 3,131,115 1,341,626 1,217,151 24,486 2,583,263 547,852 376,325 16 376,341 171,511 33,760 (150,245) 68,886 25,064 (3,168) (1,569) 438,392 (318) (230,254) 180,548 352,059 23,020 329,039 6,250 248,330 4,767 1,250 258,097 (614,672) 729 (366) (613,577) (355,480) $ (26,441) $ $

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2020 and 2019 (Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Balance at January 1, 2019 Appropriation and distribution of retained earnings: Legal reserve appropriated Reversal of special reserve Cash dividends of ordinary share Net income for the year ended December 31, 2019 Other comprehensive income for the year ended December 31, 2019 Total comprehensive income for the year ended December 31, 2019 Balance at December 31, 2019 Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve reversal Cash dividends of ordinary share Net income for the year ended December 31, 2020 Other comprehensive income for the year ended December 31, 2020 Total comprehensive income for the year ended December 31, 2020 Balance at December 31, 2020	Share capital		Capital surplus				Retained earnings	Retained earnings	Retained earnings		Total other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value foreign financial statements through other comprehensive income Total other equity interest	Total other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value foreign financial statements through other comprehensive income Total other equity interest	Total other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value foreign financial statements through other comprehensive income Total other equity interest	Total other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value foreign financial statements through other comprehensive income Total other equity interest	Total other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value foreign financial statements through other comprehensive income Total other equity interest	Total other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value foreign financial statements through other comprehensive income Total other equity interest	Total equity 10,186,815 - - (315,975) (315,975) 323,842 (260,319) 63,523 9,934,363 - - (157,988) (157,988) 329,039 (355,480) (26,441) 9,749,934
											Exchange differences on translation of foreign financial statements		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
	Ordinary shares				Legal reserve		Special reserve	Unappropriated earnings		Total retained earnings
	$ 1,974,846 - - - - - - - 1,974,846 - - - - - - - $ 1,974,846		53,411		1,664,166		621,623		6,151,652 (51,371) 262,136 (315,975) (105,210) 323,842 (3,512) 320,330 6,366,772 (32,033) (176,203) (157,988) (366,224) 329,039 (7,178) 321,861 6,322,409	8,437,441		(263,496) - - - - - (277,647) (277,647) (541,143) - - - - - (613,577) (613,577) (1,154,720)		(15,387) - - - - - 20,840 20,840 5,453 - - - - - 265,275 265,275 270,728		(278,883) - - - - - (256,807) (256,807) (535,690) - - - - - (348,302) (348,302) (883,992)
			- - -		51,371 - -
			-		51,371
			- -		- -
			-		-
			53,411 - - -		1,715,537 32,033 - -
			-		32,033
			- -		- -
			-		-
			53,411		1,747,570

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation and amortization expense Expected credit loss Net (gain) loss on financial assets at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates and joint ventures accounted for using equity method Net (gain) loss on disposal of property, plant and equipment Loss on disposal of investments accounted for using equity method, net Others Total adjustments to reconcile profit (loss) Changes in operating assets: Decrease (increase) in notes and accounts receivable (including related parties) Increase in other current assets Decrease (increase) in other current financial assets Changes in operating liabilities: Increase (decrease) in notes and accounts payable Increase (decrease) in current contract liabilities Increase (decrease) in other current liabilities Decrease in net defined benefit 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 from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in other non-current assets Decrease in other non-current financial assets Decrease in other non-current assets Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase (decrease) in short-term borrowings Proceeds from issuance of bonds Repayments of bonds Repayments of long-term borrowings Payment of lease liabilities Cash dividends paid Others Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2020 $ 352,059 931,692 16 (438,392) 150,245 (25,064) (13,616) (68,886) 3,168 230,254 (317) 769,100 (7,111) (12,620) (13,048) (32,779) (73,093) 14,809 (35,799) (2,827) (96,910) (129,689) 639,411 991,470 30,111 52,052 (159,858) (36,809) 876,966 (109,750) 5,500 (326,105) 48,996 - 358,940 (113,809) 13,507 (28,304) (24,844) 3,166 (172,703) (1,334,943) 2,500,000 (400,000) (643,754) (46,581) (157,988) (291) (83,557) (166,778) 453,928 3,288,046 $ 3,741,974	2019 378,258 964,024 20 6,069 237,044 (74,166) (6,009) (65,147) (3,399) - - 1,058,436 12,467 (51,465) 23,410 (15,588) 56,005 (145) 4,331 (19,096) 41,095 25,507 1,083,943 1,462,201 75,102 84,829 (246,121) (24,350) 1,351,661 (268,003) - (50,397) 13,553 (30,000) - (243,127) 7,284 9,158 (4,821) 140 (566,213) 590,130 - - (1,001,471) (51,079) (315,975) 353 (778,042) (64,565) (57,159) 3,345,205 3,288,046

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars Except for Earnings Per Share Information and Unless Otherwise Specified)

(1) Company history

CHINESE MARITIME TRANSPORT LTD. (the “Company”), previously named Associated Transport Inc., was incorporated as a company limited by shares on January 31, 1978, in the Republic of China. The Company’ s common shares were listed on the Taiwan Stock Exchange (TWSE). The consolidated financial statements of the Company as of and for the years ended December 31, 2020 comprise the Company and its subsidiaries (together refined to as the “Group”). The main activities of the Group are bulk-carrier transportation through its 100%-owned overseas subsidiaries; domestic container hauling, vessel transportation, warehousing, and related business; and acting as the general sales agent for Saudi Arabian Airlines. The Group also owns investment companies to engage in the business of investment. Based on the organization of the Group and distribution of duties, the Company leads and invests in the business in the Group related to transportation. Please refer to note 4(c)(ii) for related information.

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

These consolidated financial statements were authorized for issue by the board of directors on March 19, 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, 2020:

• ●Amendments to IFRS 3 “Definition of a Business”

• ●Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”

• ●Amendments to IAS 1 and IAS 8 “Definition of Material”

• ●Amendments to IFRS 16 “COVID-19-Related Rent Concessions”

• (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, 2021, would not have a significant impact on its consolidated financial statements:

• ●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”

(Continued)

10

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

Content of amendment Effective date per IASB The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of balance sheet, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments include clarifying the classification requirements for debt a company might settle by converting it into equity. January 1, 2023

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other 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 16 “Property, Plant and Equipment Proceeds before Intended Use”

• －

• ●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”

• ●Annual Improvements to IFRS Standards 2018-2020

• ●Amendments to IFRS 3 “Reference to the Conceptual Framework”

• ●Amendments to IAS 1 “Disclosure of Accounting Policies”

• ●Amendments to IAS 8 “Definition of Accounting Estimates”

(4) Summary of significant accounting policies

The significant accounting policies presented in the consolidated financial statements are summarized follows. Except for those specifically indicated, the following accounting policies were applied consistently throughout the presented periods in the consolidated financial statements.

(Continued)

11

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(a) Statement of compliance

These consolidated financial statement have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as the Regulations) and International Financial Reporting Standards, International Accounting Standards, endorsed and issued into effect by IFRIC Interpretations and SIC Interpretations the Financial Supervisory Commission, R.O.C..

(b) Basis of preparation

• (i) Basis of measurement

Except for the following significant accounts, the consolidated annual consolidated financial statements have been prepared on the historical cost basis:

• 1) Financial instruments at fair value through profit or loss are measured at fair value;

• 2) Financial instruments at fair value through other comprehensive income are measured at fair value;

• 3) The defined benefit liabilities (assets) are measured at fair value of the pension assets less the present value of the defined benefit obligation, limited as explained in note (4)(p).

• (ii) Functional and presentation currency

The functional currency of each Group entities is determined based on the primary economic environment in which the entities operate. The consolidated financial statements are presented in New Taiwan Dollar, which is the Group’s functional currency. All financial information presented in New Taiwan Dollar has been rounded to the nearest thousand.

• (c) Basis of consolidation

• (i) Principle of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

(Continued)

12

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

• (ii) List of subsidiaries in the consolidated financial statements

Name of investor	Name of subsidiary Chinese Maritime Transport(S) Pte. Ltd. (CMTS) Chinese Maritime Transport (Hong Kong), Limited (CMTHK) CMT Logistics Co., Ltd. (CMTL) AGM Investment Ltd. (AGMI) Hope Investment Ltd. (HIL) Mo Hsin Investment Ltd. (MHI) Associated Transport Inc. (ATI) CMT Travel Service Ltd. (CMTTSL) United Nan Hai Petroleum INC (UNH) United Nan Hai Development Inc. (NHD) CMT Leasing Co., Ltd. (CMTLL) China Fortune Shipping Pte Ltd. (CFR) China Enterprise Shipping PTE. Ltd. (CEP) China Prosperity Shipping Ltd. (CPS) China Peace Shipping Ltd. (CPC) China Progress Shipping Ltd. (CPG) China Pioneer Shipping Ltd. (CPN) China Pride Shipping Ltd. (CPD) CMT Chartering Ltd. (CCL) China Triumph Shipping Ltd. (CTU) China Trade Shipping Ltd. (CTD)	Principal activity	Shareholding December 31, 2020 December 31, 2019 Note 0.34 0.34 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Note 2 100 100 Note 3 - - Note 1 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	Shareholding December 31, 2020 December 31, 2019 Note 0.34 0.34 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Note 2 100 100 Note 3 - - Note 1 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
			December 31, 2020 0.34 100 100 100 100 100 100 100 100 100 - 100 100 100 100 100 100 100 100 100 100
The Company 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 CMTS 〃 CMTHK 〃 〃 〃 〃 〃 〃 〃		Investment holding of ship- owning companies Investment holding of ship- owning companies Warehouse management Investment Investment Investment Container trucking Travel Gasoline international trade Investment Car rental Bulk-carrier transportation Bulk-carrier transportation Bulk-carrier transportation Bulk-carrier transportation Bulk-carrier transportation Bulk-carrier transportation Bulk-carrier transportation Bulk-chartering services Bulk-carrier transportation Bulk-carrier transportation		0.34 100 100 100 100 100 100 100 100 Note 2 100 Note 3 - Note 1 100 100 100 100 100 100 100 100 100 100

(Continued)

13

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor	Name of subsidiary China Harmory Shipping Ltd. (CHM) China Honour shipping Ltd. (CHN) CMT Investment CO., Limited (CHI) Chinese Maritime Transport Ship Management (Hong Kong) Limited (CIM) Chinese Maritime Transport (S) Ptd. Ltd. (CMTS) Chang-Shun Transport CO., Ltd. (CST) Huang-Yuen Transport CO., Ltd. (HYT) Mao-Hua Transport CO., Ltd. (MHT) AG Prosperity Transport CO., Ltd. (APT) Pioneer Transport Co., Ltd. (PTL)	Principal activity	Shareholding December 31, 2020 December 31, 2019 Note 100 100 100 100 100 100 100 100 99.66 99.66 100 100 100 100 100 100 100 100 100 100	Shareholding December 31, 2020 December 31, 2019 Note 100 100 100 100 100 100 100 100 99.66 99.66 100 100 100 100 100 100 100 100 100 100
			December 31, 2020 100 100 100 100 99.66 100 100 100 100 100
CMTHK 〃 〃 〃 〃 ATI 〃 〃 〃 〃		Bulk-carrier transportation Bulk-carrier transportation Investment Investment management Investment holding of ship- owning companies Container trucking Container trucking Container trucking Container trucking Container trucking		100 100 100 100 99.66 100 100 100 100 100

Note 1: Subsidiary incorporated in August 2018; and was dissolved in January 2019.

Note 2: Subsidiary incorporated in April 2013; and was liquidated on October 30, 2020, wherein the liquidation procedures has yet to be completed.

Note 3: Subsidiary incorporated in December 2015; and was liquidated on November 11, 2020, wherein the liquidation procedures has yet to be completed.

• (d) Foreign currencies

(i) Foreign currency transaction

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for an investment in equity securities designated as fair value through other comprehensive income.

(Continued)

14

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into NTD at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into NTD at average rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of any part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interest. When the Group disposes of only part of investment in an associate of joint venture that includes a foreign operation while retaining significant or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planed nor likely in the foreseeable future, exchange differences arising thereon from part of a net investment in the foreign operation and are recognized in other comprehensive income.

• (e) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non current.

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non current.

An entity shall classify a liability as current when:

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

(iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(Continued)

15

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits and Commercial paper with reverse repurchase agreement which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – equity investment; or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

• 1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• ‧ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• ‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(Continued)

16

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Fair value through other comprehensive income (FVOCI )

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• ‧ it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• ‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

• 3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

• 4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable, other receivable, guarantee deposit paid and other financial assets), and debt investments measured at FVOCI.

(Continued)

17

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group measures loss allowances at an amount equal to lifetime expected credit loss (ECL), except for the following which are measured as 12-month ECL:

‧debt securities that are determined to have low credit risk at the reporting date; and

‧ other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for accounts receivables are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Group considers a financial asset to be in default when the financial asset is more than 180 days past due or the borrower is unlikely to pay its credit obligations to the Group in full.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment grade which is considered to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings. The time deposits and commercial paper with reverse repurchase agreement held by the Group were considered to have low credit risk because the Group’s transaction counter parties and the contractually obligated counter parties are financial institutions with credit ratings beyond investment grade.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

(Continued)

18

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘ creditimpaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following observable data:

‧significant financial difficulty of the borrower or issuer;

• ‧a breach of contract such as a default or being more than 180 days past due;

• ‧the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

• ‧it is probable that the borrower will enter bankruptcy or other financial reorganization; or

• ‧the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

• 5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(Continued)

19

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

4) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

• 5) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(Continued)

20

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over their financial and operating policies. Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Group’ s share of the profit or loss and other comprehensive income of those equity-accounted investees after adjustments to align the accounting policies with those of the Group from the date on which significant influence commences until the date on which significant influence ceases.

Gain and losses resulting from the transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interest in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

(i) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(j) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(Continued)

21

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the use of the property changes from internal use to investment use.

• (iii) Subsequent cost

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

(iv) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows:

• 1) Buildings: 3 ~ 60 years

• 2) Building improvements: 3~15 years.

• 3) Container transportation equipment: 1 ~7 years

• 4) Shipping transportation equipment: 2~20 years

• 5) Container terminal facility: 4~60 years

• 6) Furniture, fixtures and other equipments: 1 ~12 years

Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.

(k) Lease

• (i) Identifying a lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

• 1) the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and

(Continued)

22

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) the customer has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

• 3) the customer has the right to direct the use of the asset throughout the period of use only if either:

  • the customer has the right to direct how and for what purpose the asset is used throughout the period of use; or

  • the relevant decisions about how and for what purpose the asset is used are predetermined and:

    • － the customer has the right to operate the asset throughout the period of use, without the supplier having the right to change those operating instructions; or

    • － the customer designed the asset in a way that predetermines how and for what purpose it will be used throughout the period of use.

• (ii) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments; including in-substance fixed payments.

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

(Continued)

23

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• － there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or

• － there is a change of its assessment on whether it will exercise a extension or termination option; or

• －

• there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

• (iii) As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(l) Intangible assets

• (i) Recognition and measurement

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost, less, accumulated amortization and any accumulated impairment losses.

• (ii) Subsequent Expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognized in profit or loss as incurred.

(Continued)

24

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Amortization

The amortizable amount is the cost of an asset, less its residual value, and is recognized in profit or loss on a straight line basis over the estimated useful lives of intangible assets, from the date that they are available for use.

The intangible asset that the Group possesses is software. The estimated useful lives of computer software is 3~7 years.

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(m) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(n) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

(o) Revenue

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

(Continued)

25

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

1) Freight revenue

Vessel chartering revenue is currently recognized during its lease terms ; container hauling revenue is recognized when the goods are delivered to the customers’ premises ; warehouse rent and hanging cabinet revenue is recognized when the service is provided; also, airline agent revenue is recognized when the service is provided.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Group exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized.

2) Rental income from investment property

Rental income from investment property is recognized in income on a straight-line basis over the lease term. Incentives granted to the lessee to enter into an operating lease are considered as part of rental income which is spread over the lease term on a straight-line basis so that the rental income received are recognized periodically.

3) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(ii) Contract costs

1) Incremental costs of obtaining a contract

The Group recognizes as an asset the incremental costs of obtaining a contract with a customer if the Group expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

The Group applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

• 2) Costs to fulfil a contract

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (for example, IAS 2 Inventories, IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets), the Group recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

(Continued)

26

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• ‧ the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify;

• ‧ the costs generate or enhance resources of the Group that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and

• ‧ the costs are expected to be recovered.

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Group cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations(or partially satisfied performance obligations), the Group recognizes these costs as expenses when incurred.

(p) Employee benefits

• (i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

• (ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(Continued)

27

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

• (q) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

The Group has determined that interest and penalties related to income taxes, including uncertain tax treatment, do not meet the definition of income taxes, and therefore accounted for them under IAS37.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

• (ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Group has a legally enforceable right to set off currenttax assets against current tax liabilities; and

(Continued)

28

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

(r)

Earnings per share

The Group discloses the basic and diluted earnings per share attributable to ordinary equity holders of the Company. The calculation of basic earnings per share is based on the profit attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjusting the effects of all potential dilutive ordinary shares. Potential dilutive ordinary shares comprise employee stock options and employee bonuses that are yet to be resolved by the shareholders and approved by the board of dirctors.

(s)

Operating segments

An operating segment is a component of the Group that engages in business activities from which it may incur revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Each operating segment consists of standalone financial information.

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

The preparation of the consolidated financial statements in conformity with the IFRSs 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 management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period.

There are no critical judgements in applying accounting policies that have significant effect on amounts recognized in the consolidated financial statements.

(Continued)

29

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The followings are the related information about material risk contained in uncertainty of assumption and estimation which may lead to a material adjustment in the following year:

• (a) Impairment assessment of property, plant and equipment

In the process of assessing asset impairment, the Group depends on the subjective judgement of its management, the usage of its asset, and the characteristics of the industry, to make decisions about the independent cash flows of certain asset groups, expected lifetime of the asset, as well as gain and loss that may arise in the future. The potential risk of asset impairment lies in the change in the overall economy, the assumption made by the management, and the future strategic plan of the Group.

(6) Explanation of significant accounts

• (a) Cash and cash equivalents

December 31, 2020 Petty cash, checking accounts and demand deposits $ 861,723 Time deposits 2,455,458 Cash equivalents-commercial paper and reverse repurchase agreement 424,793 $ 3,741,974	December 31, 2019
	863,945 2,254,565 169,536
	3,288,046

Please refer to note 6(t) for the exchange rate risk, the interest rate risk and, the fair value sensitivity analysis of the financial assets and liabilities of the Group.

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

• (i) Information is as follows:

Current financial assets mandatorily measured as at fair value through profit or loss: Non-derivative financial instrument Domestic listed stocks Non-current financial assets mandatorily measured as at fair value through profit or loss: Non-derivative financial instrument Domestic listed stocks Domestic listed stocks under private placement Domestic unlisted stocks Current Non-current	December 31, 2020 $ 634,690 64,856 119,098 24,961 $ 843,605 $ 634,690 208,915 $ 843,605	December 31, 2019
		14,050 62,963 31,046 25,545
		133,604
		14,050 119,554
		133,604

(Continued)

30

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The gain or loss on financial assets at fair value through profit or loss for the years ended December 31, 2020 and 2019 were a gain of $438,392 and a loss of $6,069, respectively.

During the years ended December 31, 2020 and 2019, the dividends of $9,708 and $336, respectively, related to investment at fair value through profit or loss, were recognized.

The Group did not provided any aforementioned financial assets as collateral as of December 31, 2019.

As of December 31, 2020, the financial assets measured at fair value through profit or loss of the Group had been pledged as collateral, please refer to note (8).

(ii) Debt investment information

The convertible bonds held by the Group was due on June 27, 2019, and converted to 4,798 thousand shares of common shares under private placement at $20.84 dollars per share. The equity investments were held for trading, therefore, they were classified as non-current financial assets at fair value through profit or loss on December 31, 2020 and 2019.

• (iii) The Group has assessed that the domestic unlisted common shares are held within a business model whose objective is achieved by both collecting the contractual cash flows and by selling securities; therefore, they have been designated as debt investment and classified as financial assets mandatorily measured value through profit or loss.

• (c) Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income
December 31, 2020 Equity investments at fair value through other comprehensive income Domestic listed stocks $ 1,188,476	December 31, 2019
	315,134

• (i) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategic purposes, rather than trading purposes.

The Group newly purchased those investments for strategic purposes amounting to $109,750 and $268,003 for the years ended December 31, 2020 and 2019, respectively.

During the years ended December 31, 2020 and 2019, the Group had recognized unrealized gain on financial assets at fair value through other comprehensive income of $248,330 and $22,158, respectively.

During the years ended December 31, 2020 and 2019, the dividends of $3,908 and $5,673, respectively, related to equity investment at fair value through other comprehensive income held on December 31, 2020 and 2019, were recognized.

There were no disposal of strategic investments and transfers of any cumulative gain or loss

(Continued)

31

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

within equity relating to these investments during the years ended December 31, 2020 and 2019.

• (ii) The Group has lost its significant influence over Taiwan Navigation Co., Ltd. since December 2020. Please refer to Note 6(e)(vi) for the amount of $515,262 that had been reclassified from investment accounted for using equity method to financial asset at fair value through other comprehensive income.

(iii) Please refer to note (6)(t) for market risk.

• (iv) As of December 31, 2020 and 2019, the financial assets measured at other comprehensive income of the Group had been pledged as collateral, please refer to note (8).

• (d) Notes and accounts receivable

December 31, 2020 Notes receivable $ 11,115 Accounts receivable 286,560 Less: Loss allowance (174) $ 297,501 Notes and accounts receivable, net $ 285,637 Notes and accounts receivable due from related parties, net $ 11,864	December 31, 2019 8,952 281,612 (158) 290,406 273,636 16,770

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision was determined as follows:

Not overdue 1 to 30 days past due 30 to 180 days past due More than 180 days past due	December 31, 2020	December 31, 2020
	Gross carrying amount $ 282,635 12,767 2,273 - $ 297,675	Weighted- average loss rate - - 7.66% -	Loss allowance provision
			- - 174 -
			174

(Continued)

32

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Not overdue 1 to 30 days past due 30 to 180 days past due More than 180 days past due	December 31, 2019	December 31, 2019
	Gross carrying amount $ 274,795 15,016 752 1 $ 290,564	Weighted- average loss rate - - 20.88% 100%	Loss allowance provision
			- - 157 1
			158

The movement in the allowance for notes and accounts receivable was as follows:

Balance on January 1 Impairment losses recognized Amount written off Balance on December 31	2020 $ 158 16 - $ 174	2019 301 20 (163) 158

The Group did not provide any aforementioned notes and accounts receivable as collaterals as of December 31, 2020 and 2019.

Please refer to note (6)(t) for credit risk of other receivables.

• (e) Investments accounted for using equity method

• (i) A summary of the Group’ s financial information for equity-accounted investees at the reporting date is as follows:

December 31, 2020 Associates $ 630,292	December 31, 2019
	1,698,801

• (ii) The Group’s share of the profit (loss) of associates and joint ventures was as follows:

2020 Associates $ 68,886	2019
	65,147

• (iii) Details of the material associate are as follows:

Name	Nature of the relationship Entity in which the Group has significant influence and in which its main activities are sea shipping services and construction subcontractor, leasing and sales of commercial and residential buildings	Principal place of business/ Country of incorporation	Effective ownership interest and voting right
			December 31, 2020 December 31, 2019 Note % 10.406
Taiwan Navigation Co., Ltd. (TNCL)		Taiwan

(Continued)

33

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note: The Group had lost its significant influence over TNCL, resulting in its investments accounted for using equity method to be reclassified to financial asset at fair value through other comprehensive income.

The fair value of the shares of the listed material associate of the Group was as follows:

	December	December	31,	December 31,
		2020		2019
TNCL	$	-		770,742

The following table summarizes the information of the Group’s material associate adjusted for any differences in accounting policies and reconciles the information to the carrying amount of the Group’s interest in the associates.

• 1) Summarized financial information of TNCL

				December 31,	December 31,
					2019
Current assets			$		1,592,523
Non-current assets					13,521,227
Current liabilities					(505,748)
Non-current liabilities					(4,366,773)
Net assets (Attributable to the investee)			$		10,241,229
					2019
Revenue			$		3,113,990
Profit from continuing operations					601,096
Other comprehensive income					(237,376)
Total comprehensive income (Attributable to the	investee)		$		363,720
		2020			2019
Group’s share of net assets attributable	$	1,065,702			1,084,304
Total comprehensive income attributable		73,493			37,849
Dividends received by associates		(34,739)			(56,451)
Disposals		(478,179)			-
Reclassification to financial assets at fair value
through other comprehensive income		(626,277)			-
Ending balance of net assets attributable	$	-			1,065,702

(Continued)

34

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iv) Summarized financial information of individually insignificant associates

The summarized financial information of individually insignificant associates using the equityaccounted method is as follows:

December 31, 2020 Carrying amount of individually insignificant associates’ equity $ 630,292 2020 Share of resells attributable to the Group: Profit from continuing operations $ 25,566 Other comprehensive (loss) income (24,677) Comprehensive income $ 889	December 31, 2019 633,099 2019 2,599 (11,160) (8,561)

• (v) The Group disposed part of its investment in TNCL amounting to $358,940, in December 2020, resulting in a loss on disposal of $119,239 to be recognized under losses on disposal of investments.

• (vi) The Company and its Group held 10.406% of shares of TNCL for long term equity investments and coordinating shipping business, and the Company obtained one seat of the board of directors. The Group accounted it by using equity method. In accordance with the investing business adjustment of the Group, the Company decided to dispose all of its investment in TNCL after the board of directors had reached a resolution on December 8, 2020. As of December 31, 2020, the shares of TNCL held by the Group had decreased to 5.48%, and the shares held by the Company were also reduced to approximately half of the shares held at the time when the Company was elected as corporate director. Furthermore, the Company will continue to dispose the rest of shares. According to Act 197 of Company Act, in case a director of a company whose shares are issued to the public that has been transferred during his/her term as a director, more than one half of a company’s shares being held by him/her at the time he/she is elected, he/she shall, ipso facto, be discharged from the office of director. In light of the above matter, the Group has no intention of retaining any shares in TNCL, therefore, it had lost its significant influence over TNCL in December 2020, resulting in the Group to measure its financial asset with the fair value obtained at the date of losing significant influence amounting to $515,262, previously recognized as investment accounted for using equity method, to be reclassified to financial asset at fair value through other comprehensive income, and to recognize the loss measured at fair value amounting to $111,015, recorded under loss on disposal of investment.

The gain or loss on disposal mentioned above, includes the amount related to the associate, was reclassified from other comprehensive income to gain or loss.

• (vii) In 2020 and 2019, the Group was distributed with cash dividends of $38,436 and $78,820, respectively, from the aforementioned investee companies.

(Continued)

35

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(viii) Pledges

As of December 31, 2020, the Group did not provide investment accounted for using equity method as collateral.

As of December 31, 2019, the Group provided investment accounted for using equity method as collateral. Please refer to note (8).

(f) Property, plant and equipment

The cost depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2020 and 2019 were as follows:

Land Cost or deemed cost: Balance on January 1, 2020 $ 1,717,868 Additions - Disposals - Reclassifications - Effect of movements in exchange rates - Balance on December 31, 2020 $ 1,717,868 Balance on January 1, 2019 $ 1,717,114 Additions 754 Disposals - Reclassifications - Effect of movements in exchange rates - Balance on December 31, 2019 $ 1,717,868 Depreciation and impairments loss: Balance on January 1, 2020 $ - Depreciation - Disposals - Effect of movements in exchange rates - Balance on December 31, 2020 $ - Balance on January 1, 2019 $ - Depreciation - Disposals - Reclassifications - Effect of movements in exchange rates - Balance on December 31, 2019 $ - Carrying amounts: Balance on December 31, 2020 $ 1,717,868 Balance on December 31, 2019 $ 1,717,868 Balance on January 1, 2019 $ 1,717,114	Buildings and construction 146,964 1,022 (865) 192 (2,156) 145,157 135,685 9,118 (2,430) 5,434 (843) 146,964 83,760 9,242 (671) (452) 91,879 85,051 7,001 (2,397) (5,727) (168) 83,760 53,278 63,204 50,634	Transportation Equipment 18,762,193 52,427 (23,219) 4,322 (1,127,353) 17,668,370 19,027,923 154,658 (19,150) 39,487 (440,725) 18,762,193 7,303,655 831,000 (15,254) (460,858) 7,658,543 6,629,165 861,613 (16,477) - (170,646) 7,303,655 10,009,827 11,458,538 12,398,758		Other equipment		Under construction 28,220 - - - (1,769) 26,451 11,795 56,713 - (39,487) (801) 28,220 - - - - - - - - - - - 26,451 28,220 11,795	Total 21,266,478 113,809 (69,800) 4,322 (1,131,278) 20,183,531 21,451,162 243,127 (33,253) 47,811 (442,369) 21,266,478 7,717,067 879,555 (53,125) (461,310) 8,082,187 7,011,416 905,833 (29,368) - (170,814) 7,717,067 12,101,344 13,549,411 14,439,746

(Continued)

36

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (i) The pledge information is summarized in note (8).

• (ii) The Group disposed of the property, plant and equipment during the years ended December 31, 2020 and 2019 for $13,507 and $7,284, respectively. The cost of aforementioned property, plant and equipment amounted to $16,675 and $3,885, respectively, and the related gain or loss of disposal was a loss of $3,168 and a gain of $3,399, respectively. The registration procedures of the assets transfer have been completed and related receivable have been collected.

• (iii) The Group evaluated its transportation equipment for impairment, exercised impairment testing and recognized no impairment loss according to IFRS 36 “Impairments Non-Financial Asset”. The accumulated impairment loss was USD$31,555 thousand ($886,696 and $946,019 in thousand New Taiwan dollars) as of December 31, 2020 and 2019, respectively.

• (iv) The Group recorded the carrying amount of significant repair under property, plant and equipment in 2020 and 2019 for $61,882 and $100,689, respectively.

• (v) Operating lease

The transportation equipment, bulk carriers that owned by the Group are leased to third parties under operating leases. The leases of bulk carriers contain an initial non-cancellable lease term of 1 to 3 years. For all bulk carriers leases, the rental income is fixed under the contract. For more information of operating leases, please refer to note (6)(l).

(g) Right-of-use assets

The Group leases many assets including land and buildings. Information about leases for which the Group as a lessee is presented below:

Cost: Balance on January 1, 2020 Additions Disposal Balance on December 31, 2020 Balance on January 1, 2019 (Same balance on December 31, 2019) Accumulated depreciation and impairment losses: Balance on January 1, 2020 Depreciation Disposal Balance on December 31, 2020 Balance on January 1, 2019 Depreciation Balance on December 31, 2019	Land $ 194,468 14,755 (41,382) $ 167,841 $ 194,468 $ 39,345 33,285 (18,341) $ 54,289 $ - 39,345 $ 39,345	Buildings and construction 78,813 - - 78,813 78,813 15,153 15,153 - 30,306 - 15,153 15,153	Total 273,281 14,755 (41,382) 246,654 273,281 54,498 48,438 (18,341) 84,595 - 54,498 54,498

(Continued)

37

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying Amount: Balance on December 31, 2020 Balance on December 31, 2019	Land $ 113,552 $ 155,123	Buildings and construction 48,507 63,660	Total
			162,059
			218,783

(h) Investments property

Investment property comprises office buildings that are leased to third parties under operating leases that are owned by the Group. The leases of investment properties contain an initial non-cancellable lease term of 1 to 5 years. For all investment property leases, the rental income is fixed under the contracts.

contracts.
		Owned Property
		Land	Building		Total
Cost or deemed cost:
Balance on January 1, 2020	$	19,094	25,152		44,246
Effect of movements in exchange rates		-	(1,341)		(1,341)
Balance on December 31, 2020	$	19,094	23,811		42,905
Balance on January 1, 2019	$	19,094	25,676		44,770
Effect of movements in exchange rates		-	(524)		(524)
Balance on December 31, 2019	$	19,094	25,152		44,246
Depreciation and impairment losses:
Balance on January 1, 2020	$	-	8,251		8,251
Depreciation		-	488		488
Effect of movements in exchange rates		-	(369)		(369)
Balance on December 31, 2020	$	-	8,370		8,370
Balance on January 1, 2019	$	-	7,881		7,881
Depreciation		-	508		508
Effect of movements for exchange rates		-	(138)		(138)
Balance on December 31, 2019	$	-	8,251		8,251
Carrying amount:
Balance on December 31, 2020	$	19,094	15,441		34,535
Balance on December 31, 2019	$	19,094	16,901		35,995
Balance on January 1, 2019	$	19,094	17,795		36,889
Fair Value:
Balance on December 31, 2020				$	91,216
Balance on December 31, 2019				$	112,118

The fair value of investment properties was based on a valuation by a qualified independent appraiser who has recent valuation experience in the location and category of the investment property being valued.

(Continued)

38

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Investment property comprises a number of commercial properties that are leased to third parties. Each of the leases contains an initial non-cancellable period. Subsequent renewals are negotiated with the lessee, and no contingent rents are charged. For more information (including rent revenue and operating expenses occured directly), please refer to note (6)(l).

As of December 31, 2020 and 2019, the investment property of the Group was not pledged as collateral or restricted.

(i) Other financial assets

December 31, 2020 Restricted deposits $ 67,657 Time deposits (over three months) 25,402 Other receivables 22,272 Refundable deposits 8,224 Pledged assets-time deposits 228,355 $ 351,910 Other current financial assets $ 333,286 Other non-current financial assets 18,624 $ 351,910	December 31, 2019
	- 58,234 17,860 5,696 244,029
	325,819
	304,029 21,790
	325,819

The restricted time deposits are applicable to “ The Management, Utilization, and Taxation of Repatriated Offshore Funds Act” for the Group in 2020. The restricted time deposits accounts are used for the purpose of offshore funds only.

As of December 31, 2020 and 2019, the Group provided other financial assets as collateral. Please refer to note (8).

(j) Loans

The Group’s details of loans were as follows:

• (i) Short-term borrowings and commercial paper payable, net

December 31, 2020 Bank loans $ 120,000 Commercial paper payable 75,000 Less: discount on commercial paper payable (60) $ 194,940 Unused credit lines $ 3,815,000 Range of interest rate 0.88%~1.208%	December 31, 2019 1,050,000 480,000 (117)
	1,529,883
	2,390,000
	0.900%~1.198%

(Continued)

39

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Long-term loans

Bank	Currency	Due Year December 31, 2020 2021 $ 126,450 2022 516,659 2022 189,675 2023 558,783 2026 454,608 2027 666,883 2027 667,375 3,180,433 (612,538) $ 2,567,895 0.955%~3.52%	December 31, 2019 269,820 650,163 337,275 694,359 535,590 782,148 777,381 4,046,736 (653,519) 3,393,217 2.65%~4.31%
Mega International Commercial Bank Bank Sinopec Mega International Commercial Bank Bank Sinopec BNP PARIBAS CTBC Bank Mega International Commercial Bank Current portion Total Range of interest rates	USD 〃 〃 〃 〃 〃 〃

(iii) Bonds Payable

The Company issued secured bonds at face value. The interest is calculated and paid annually from the date of issuance. The bonds payables were as follows:

2016 The first secured bonds payable The second secured bonds payable 2017 The first secured bonds payable ″ 2020 The first secured bonds payable ″ ″ ″ Current portion	Guarantee bank	Interest rate	Due December 31, 2020 March 2021 $ 900,000 March 2021 1,400,000 April 2020 - April 2022 400,000 August 2025 500,000 August 2025 500,000 August 2025 1,000,000 August 2025 500,000 5,200,000 (2,300,000) $ 2,900,000	December 31, 2019 900,000 1,400,000 400,000 400,000 - - - -
	Bank of Taiwan Mega Bank Shanghai Commercial Bank ″ Shanghai Commercial Bank ″ Mega Bank ″	% 0.88 % 1.00 % 1.13 % 1.13 % 0.64 % 0.66 % 0.64 % 0.66
				3,100,000 (400,000)
				2,700,000

(Continued)

40

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iv) In order to repay its bank loans and bonds payable which were issued previously, as well as to increase its working capital for the requirement of business development, the Company issued secured corporate bonds, which were approved at the Board of Directors' meeting on May 13, 2020. The first secured corporate bonds were released with a period of five years, which amounted to $1,000, at par value, with a total amount of $2,500,000. The bonds were issued at full.

• (v) Refer to note 6(t) for the information of exposure to liquidity risk. The Group provided assets as collaterals for credit line of short-term and long-term borrowing, please refer to note (8).

(k) Lease liabilities

December 31, 2020 Current $ 44,533 Non-current $ 122,486	December 31, 2019
	52,509
	169,693

For the maturity analysis, please refer to note 6(t) financial instruments.

The amounts recognized in profit or loss were as follows:

The amounts recognized in profit or loss were as follows:
2020 Interest on lease liabilities $ 1,907	2019
	2,580

The amounts recognized in the consolidated statements of cash flows for the Group were as follows:

Total cash outflow for leases Land and building leases	2020 $ 48,488	2019
		53,659

As of December 31, 2020, the Group leases land and building for its parking space and warehouses. The leases of land typically run for period of 2 to 8 years, and of warehouses for 4 to 6 years.

(l) Operating lease

The Group leases out its investment property and some machines. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Please refer to note 6(h) sets out information about the operating leases of investment property.

The Group leases the bulk carriers in fixed amount. In the end of the lease term, lessee does not have the bargain purchase option. Therefore, the leases of bulk carriers are classified as operating lease. Please refer to note 6(f).

(Continued)

41

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date is as follows:

the reporting date is as follows:
December 31, 2020 Less than one year $ 1,021,720 Between one and five years 15,336 Total undiscounted lease payments $ 1,037,056	December 31, 2019
	251,707 1,794
	253,501

The rental income earned by lease investment property amount to $3,932 and $3,978 in 2020 and 2019, respectively.

(m) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

Present value of defined benefit obligations Fair value of plan assets Recognized liabilities for defined benefit obligations	December 31, 2020 $ 153,750 (122,048) $ 31,702	December 31, 2019 177,689 (136,910)
		40,779

The Group makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average salary for the six months prior to retirement.

1) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings in the annual distributions on the final consolidated financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with interest rates offered by local banks.

The Group's Bank of Taiwan labor pension reserve account balance amounted to $122,048 at the end of the reporting period. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(Continued)

42

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Movements in present value of the defined benefit obligations

The movements in present value of defined benefit obligations for the Group were as follows:

Defined benefit obligation on January 1 Benefits paid by the plan Benefits paid by the Group Current service costs and interest Remeasurement of the net defined benefit liability Defined benefit obligation on December 31	2020 $ 177,689 (23,870) (2,016) 3,647 (1,700) $ 153,750	2019 180,682 (6,404) (10,285) 4,584 9,112 177,689

• 3) Movements of the fair value of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

Fair value of plan assets on January 1 Contributions paid by the employer Benefits paid by the plan Expected return on plan assets Remeasurement of the net benefit plan liability (asset) Fair value of plan assets on December 31	2020 $ 136,910 3,507 (23,870) 951 4,550 $ 122,048	2019 125,084 12,259 (6,404) 1,136 4,835 136,910

• 4) Expenses recognized in profit or loss

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

Service cost Interest cost Expected return on plan assets Operating cost Operating expense	2020 $ 2,421 1,226 (951) $ 2,696 $ 2,025 671 $ 2,696	2019 2,930 1,654 (1,136) 3,448 1,989 1,459 3,448

(Continued)

43

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Actuarial assumptions

The following is the Group’ s principal actuarial assumptions of defined benefit obligations on the reporting date:

Discount rate Future salary increasing rate	December 31, 2020 December 31, 2019 0.500%~1.000% % 0.750 1.000%~3.500% 1.000%~3.500%

In accordance with Paragraph 2 of Article 56 of the Labor Standards Act, before the end of each year, employers shall assess the balance in the designated labor pension reserve funds account. If the amount is inadequate to pay pensions for workers retiring in the same year according to Article 53 or subparagraph 1 of Paragraph 1 of Article 54, the employer is required to make up the difference. The difference as of December 31, 2019 and 2018 were $0 and $4,444, respectively, and already allocated to the designated labor pansion reserve funds account of Taiwan Bank during year 2020 and 2019.

The expected allocation payment made by the Group to the defined benefit plans for the one year period after the reporting date was $3,507.

The weighted-average duration of the defined benefit obligation between 8.84~10.32 years.

6) Sensitivity analysis

The impact of the present value of the defined benefit obligations affected by the actuarial assumptions for the years ended December 31, 2020 and 2019 were as follows:

December 31, 2020 Discount rate Future salary increasing rate December 31, 2019 Discount rate Future salary increasing rate	Influences of defined benefit obligation Increased 0.25％ Decreased 0.25％ (2,503) 2,566 2,511 (2,398) (2,856) 2,926 2,878 (2,750)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2020 and 2019.

(Continued)

44

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Defined contribution plans

The Goup allocates 6% of each employee’ s monthly wages to the labor pension personal account at Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligations.

The Group recognized pension costs under the defined contribution method amounting to $10,856 and $10,148 for the years ended December 31, 2020 and 2019, respectively. Payment was made to the Bureau of Labor Insurance.

The pension expenses recognized by other subsidiaries included in consolidated financial statements for the years ended December 31, 2020 and 2019 were $1,303 and $1,286, respectively.

(n) Income taxes

(i) Tax expenses

The components of income tax for the years ended December 31, 2020 and 2019 were as follows:

The components of income tax for the years ended December 31, 2020 and follows:	2019 were a
2020 Current tax expense $ 23,412 Deferred tax expense Recognition and reversal of temporary differences (392) Tax expense $ 23,020	2019
	43,096
	11,320
	54,416

The amount of income tax recognized in other comprehensive income for the years ended December 31, 2020 and 2019 was as follows:

2020 Items that may not be reclassified subsequently to profit or loss Remeasurement in defined benefit plans $ 1,250 Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign financial statements $ (366)	2019 (855) (179)

(Continued)

45

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The reconciliation of income tax and profit before tax for 2020 and 2019 was as follows:

2020 Profit before income tax $ 352,059 Income tax using the Company’s domestic tax rate 70,412 Effect of tax rates in foreign jurisdiction (20,196) Dividend revenue-overseas 92,114 Tax exemption for investment income under the equity method (13,763) Surtax unappropriated earnings - Tax-free income (44,297) Realized investment loss (60,000) Unrecognized temporary differences and other (1,250) $ 23,020

2019 378,258 75,652 (57,481) 26,612 (13,029) 11,507 (24) - 11,179 54,416

• (ii) Deferred tax assets and liabilities

• 1) Unrecognized deferred tax liabilities

The Group is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as at December 31, 2020 and 2019. Also, management considered it probable that the temporary differences will not be reversed in the foreseeable future. Hence, such temporary differences were not recognized under deferred tax liabilities. Details were as follows:

December 31, 2020 Aggregate amount of temporary differences related to investments in subsidiaries $ 8,159,395 Unrecognized deferred tax liabilities $ 1,631,879	December 31, 2019
	9,045,845
	1,809,169

• 2) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2020 and 2019 were as follows:

Defined benefit Plans Deferred tax liabilities: Balance on January 1, 2020 $ 1,306 Recognized in profit or loss (1,306) Recognized in other comprehensive income - Balance on December 31, 2020 $ -	Overseas investment income recognized under the equity method Land revaluation increment	Overseas investment income recognized under the equity method Land revaluation increment		Others 7,745 295 (366) 7,674	Total 607,906 (1,011) (366) 606,529
	160,487 - - 160,487	438,368 - -
		438,368

(Continued)

46

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Defined benefit Plans Balance on January 1, 2019 $ - Recognized in profit or loss 1,306 Recognized in other comprehensive income - Balance on December 31, 2019 $ 1,306 Defined benefit Plans Deferred tax assets: Balance on January 1, 2020 $ 10,851 Recognized in profit or loss (1,675) Recognized in other comprehensive income (1,250) Balance on December 31, 2020 $ 7,926 Balance on January 1, 2019 10,452 Recognized in profit or loss (456) Recognized in other comprehensive income 855 Balance on December 31, 2019 $ 10,851	Overseas investment income recognized under the equity method	Land revaluation increment	Land revaluation increment		Others 7,482 442 (179) 7,745 Others 7,003 1,056 - 8,059 5,531 1,472 - 7,003	Total 595,749 12,336 (179) 607,906 Total 17,854 (619) (1,250) 15,985 15,983 1,016 855 17,854
	149,899 10,588 -	438,368 - - 438,368 Land revaluation increment	438,368 - -
	160,487		438,368
	Overseas investment income recognized under the equity method
	- - -		- - -
	-		-
	- - -		- - -
	-		-

• (iii) Assessment of tax

The tax returns of the Company and the domestic entities for the years through 2018 were assessed by the tax administration.

(o) Capital and other equities

• (i) Ordinary shares

As of December 31, 2020 and 2019, the authorized common stocks amounted to $3,600,000 with a par value of 10 New Taiwan dollars per share, in total of 360,000 thousand shares. All the ordinary shares were common stocks, and of which 197,485 thousand shares had been issued. All issued shares were paid upon issuance.

(Continued)

47

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Capital surplus

In accordance with the ROC Company Act, realized capital surplus are distributed according to shareholding rates and can only be distributed as stock dividends or cash dividends after offsetting losses. The aforementioned capital surplus include share premiums and donation gains. In accordance with the Securities Offering and Issuance Guidelines, the amount of capital surplus to be reclassified under share capital shall not exceed 10 percent of the actual share capital amount.

The balances of capital surplus were as follows:

December 31, 2020 Gain or loss on disposal of subsidiary $ 42,503 Changes in equity of associates for using equity method 10,908 $ 53,411	December 31, 2019
	42,503 10,908
	53,411

• (iii) Retained Earning

In accordance with the Company’s articles of incorporation, net earnings should first be used to offset the prior years’ deficits, if any, before paying any in income taxes, of the remaining balance, 10% is to be appropriated as legal reserve, and when there is a reduction in stockholders’ equity at the end of the year, the Company should appropriate the same amount as special reserve from retained earnings. The remainder and the accumulated unappropriated earnings of prior years are distributable as dividends to stockholders. The distribution rate is based on the proposal of the Company’ s board of directors and should be approved in the stockholders’ meeting.

Dividends are paid in cash or stock from retained earnings, and the amount of cash dividends should not be less than 10% of total dividends.

1) Legal reserve

When the Company has no accumulated deficits on the books, the legal reserve can be converted to share capital or distributed as cash dividends, and only the portion of legal reserve that exceeds 25% of issued share capital may be distributed.

2) Special reserve

By choosing to apply the exemptions granted under IFRS 1 "First-time Adoption of International Financial Reporting Standards" during the Company’s first-time adoption of the International Financial Reporting Standards approved by the Financial Supervisory Commission (IFRSs), unrealized revaluation gains recognized under shareholders’ equity. The increase in retained earnings occurring before the adoption date, due to the first-time adoption of IFRSs in accordance with Rule No. 1010012865 issued by the Financial Supervisory Commission on 6 April 2012, shall be reclassified as a special reserve during earnings distribution. The carrying amount of special reserve amounted to $359,487 on December 31, 2020 and 2019.

(Continued)

48

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

In accordance with the guidelines of the above Rule, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as a special reserve during earnings distribution. The amount to be reclassified should be equal to the difference between the total net current-period reduction of other shareholders’ equity resulting from the first-time adoption of IFRSs and the carrying amount of special reserve as stated above. Similarly, a portion of undistributed prior period shall be reclassified as a special reserve (which does not qualify for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior periods due to the first-time adoption of IFRSs. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

3) Earnings distribution

Based on the resolutions of the annual stockholders’ meeting held on May 13, 2020 and June 18, 2019, the earning distributions to ordinary shareholders for the fiscal years 2019 and 2018 were as follows:

Dividends distributed to ordinary shareholders Cash	2019 $ 157,988	2018
		315,975

(iv) Other Equity (After tax)

January 1, 2020 The Company and its subsidiaries Associates December 31, 2020 January 1, 2019 The Company and its subsidiaries Associates December 31, 2019	Exchange differences on translation of foreign financial Statements $ (541,143) (614,306) 729 $ (1,154,720) $ (263,496) (243,194) (34,453) $ (541,143)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 5,453 248,330 16,945 270,728 (15,387) 22,158 (1,318) 5,453	Total
			(535,690) (365,976) 17,674
			(883,992)
			(278,883) (221,036) (35,771)
			(535,690)

(Continued)

49

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (p) Earnings per share

• (i) Basic earnings per share

The calculation of basic earnings per share at December 31, 2020 and 2019 were based on the profit attributable to ordinary shareholders of the Company and the weighted-average number of ordinary shares outstanding, calculated as follows:

• 1) Profit attributable to ordinary shareholders of the Company

2020 Profit attributable to ordinary shareholders of the Company $ 329,039 2) Weighted-average number of ordinary shares (thousands) 2020 Weighted-average number of ordinary shares (basic) 197,485 3) Basic earnings per share (NTD) 2020 Basic earnings per share $ 1.67	2019
	323,842
	2019
	197,485
	2019 1.64

(ii) Diluted earnings per share

The calculation of diluted earnings per share at December 31, 2020 and 2019 were based on profit attributable to ordinary shareholders of the Company and the weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, calculated as follows:

• 1) Profit attributable to ordinary shareholders of the Company (diluted)

2020 Profit attributable to ordinary shareholder of the Company $ 329,039 2) Weighted-average number of ordinary shares (diluted) (thousands) 2020 Number of ordinary shares (basic), Jan 1 197,485 Effect on the employee stock bonuses 138 Weighted-average number of ordinary shares (diluted), September 30 197,623 3) Diluted earnings per share (NTD) 2020 Diluted earnings per share $ 1.66	2019
	323,842
	2019
	197,485 168
	197,653
	2019
	1.64

(Continued)

50

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (q) Revenue from contracts with customers

• (i) Disaggregation of revenue

2020

		2020
Primary geographical markets Asia America Europe Oceania Primary geographical markets Asia Europe Oceania	Inland trucking and terminal & logistics department	Shipping department - 37,751 1,080,266 479,093 1,597,110 2019	Others 37,738 5,600 - - 43,338	Total
	$ 1,490,667 - - - $ 1,490,667			1,528,405 43,351 1,080,266 479,093
				3,131,115
	Inland trucking and terminal & logistics department $ 1,829,819 - - $ 1,829,819	Shipping department - 1,347,814 550,602 1,898,416	Others 34,490 - - 34,490	Total
				1,864,309 1,347,814 550,602
				3,762,725

(ii) Contract balances

December 31, 2020 Notes and accounts receivable (including related parties) $ 297,675 Less: allowance for impairment (174) Total $ 297,501 Contract liabilities $ 34,136	December 31, 2019 290,564 (158) 290,406 19,327	January 1, 2019 303,194 (301) 302,893 19,472

For details on notes and accounts receivable and allowance for impairment, please refer to note (6)(d).

The amounts of revenue recognized for the years ended December 31, 2020 and 2019 that were included in the contract liability balance at the beginning of the period were $19,327 and $19,472, respectively.

(Continued)

51

CHINESE MARITIME TRANSPORT 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 and the payment to be received.

(r) Financial cost-Interest expense

The financial cost interest expenses were as follows:

Bank loan Bonds payable Lease liabilities	2020 $ 88,630 59,708 1,907 $ 150,245	2019
		180,679 53,785 2,580
		237,044

(s) Employee compensation and directors’ and supervisors’ remuneration

In accordance with the Company’s articles of incorporation, earnings shall first be used to offset against any deficit, then a range from 0.5% to 2% will be distributed to its employee compensation, and a maximum of 2% will be allocated to its director’s and supervisors’ remuneration.

For the years ended December 31, 2020 and 2019, the Company recognized its employee compensation of $3,394 and $3,653, respectively, and its directors’and supervisors’remuneration of $3,394 and $3,653, respectively. The employee compensation and directors’ and supervisors’ remuneration were recorded as operation expenses and were estimated based on the net profit before tax, excluding the employee compensation, and director’s and supervisors’ remuneration of each period, multiplied by the percentage of remuneration to employees, directors and supervisors as specified in the Company's articles. If there is difference between the aforementioned distribution approved in the board of directors and the estimation, it will be deal with changes in accounting estimation, and will be recognized in profit or loss next year.

For the years ended December 31, 2019 and 2018, the Company recognized its employee compensation of $3,653 and $5,509, respectively, and its directors’and supervisors’remuneration of $3,653 and $5,509, respectively. There was no difference between the aforementioned distribution approved in the board of directors and the estimation in the 2019 and 2018 consolidated financial statements. Relative information is available on the MOPS.

(t) Financial instruments

(i) Credit risk

1) Exposure to credit risk

The carrying amount of financial assets represents the maximum amount exposed to credit risk. As of December 31, 2020 and 2019, the maximum amount exposed to credit risk amounted to $6,423,466 and $4,353,009, respectively.

(Continued)

52

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The aggregation of sales to the Group’s major customers exceeding 10% of the Group’s total sales accounted for 38% and 47% of the total net sales for the years ended December 31, 2020 and 2019, respectively. In order to reduce credit risk, the Group assesses the financial status of the customers and the possibility of collection of receivables in order to estimate an adequate allowance for doubtful accounts on a regular basis. The customers have had a good credit and profit record. The Group has never suffered any significant credit loss.

• 2) Credit risk of Receivables

For credit risk exposure of notes and accounts receivable, please refer to note (6)(d).

Other financial assets at amortized cost includes other receivables, guarantee deposits, pledged assets-time deposits, time deposits (over three months) and restricted deposit.

All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses, with the measurement proving to have no impairment loss.

(ii) Liquidity Risk

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

December 31, 2020 Non-derivative financial liabilities: Short-term borrowings Secured bank loans Notes and accounts payable Lease liabilities Bonds payable Accrued expenses and other payables (recorded as other payables) December 31, 2019 Non-derivative financial liabilities: Short-term borrowings Secured bank loans Notes and accounts payable Lease liabilities Bonds payable Accrued expenses and other payables (recorded as other payables)	Carrying Amount		Contractual cash flows (195,000) (3,180,433) (166,033) (170,511) (5,200,000) (138,795) (9,050,772) (1,530,000) (4,046,736) (239,126) (227,582) (3,100,000) (180,638) (9,324,082)	Within 1 year		1~ 2 years Over 2 years - - (754,054) (1,813,841) - - (43,873) (80,632) (400,000) (2,500,000) - - (1,197,927) (4,394,473) - - (653,519) (2,739,698) - - (88,338) (84,717) (2,300,000) (400,000) - - (3,041,857) (3,224,415)
	$ 194,940 3,180,433 166,033 167,019 5,200,000 138,795 $ 9,047,220 $ 1,529,883 4,046,736 239,126 222,202 3,100,000 180,638 $ 9,318,585

The Group is not expecting that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amount.

(Continued)

53

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Exchange rate risk

The Group do not have significant exposure to foreign currency risk.

(iv) Interest Rate analysis

The following sensitivity analysis is based on the risk exposure to interest rate on the derivative and non-derivative financial instruments on the reporting date. Regarding the liabilities with variable interest rates, the analysis is on the basis of the assumption that the amount of assets and liabilities outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.25% when reporting to management internally, which also represents management of the Group’s assessment on the reasonably possible interval of interest rate change.

If the interest rate had increased or decreased by 0.25%, the net profit before tax would have decrease or increased for the years ended December 31, 2020 and 2019 as follows:

(v)

Increased 0.25% Decreased 0.25% Fair value information	2020 2019 $ (6,284) (12,782) 6,284 12,782

• 1) The kinds of financial instruments and fair value

The Group’s financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income are based on repeatability measured by fair value. The following table shows the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. It shall not include fair value information of the financial assets and liabilities not measured at fair value if the carrying amount is a reasonable approximation of the fair value and lease liability.

Book value Financial assets at fair value through profit or loss Non-derivative current financial assets mandatorily at fair value through profit or loss $ 634,690 Non-derivative non-current financial assets mandatorily at fair value through profit or loss 89,817 Domestic listed stocks under private placement 119,098 843,605			December 31, 2020	December 31, 2020	December 31, 2020
	Book value			Fair Value
			Level 1	Level 2	Level 3 Total - 634,690 24,961 89,816 - 119,098
			634,690 64,855 -	- - 119,098
		843,605

(Continued)

54

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through other comprehensive income Domestic listed stocks Financial assets measured at amortized cost Cash and cash equivalents Restricted deposit Time deposits (over three months) Notes and accounts receivable (including related parties) Other receivables Guarantee deposits Pledged assets-time deposits Total Financial liabilities measured at amortized cost Short-term borrowings Long-term borrowings Notes and accounts payable Lease liabilities Bonds payable Accrued expenses and other payables (recorded as other payables) Total Financial assets at fair value through profit or loss Non-derivative current financial assets mandatorily at fair value through profit or loss Non-derivative non-current financial assets mandatorily at fair value through profit or loss Domestic listed stocks under private placement		December 31, 2020	December 31, 2020	December 31, 2020
	Book value 1,188,476 3,741,974 67,657 25,402 297,501 22,272 6,874 229,705 4,391,385 $ 6,423,466 $ 194,940 3,180,433 166,033 167,019 5,200,000 138,795 $ 9,047,220
		Level 1
	Book value	Level 1 14,050 62,963 -	Fair Value
			Level 2	Level 3 Total - 14,050 25,545 88,508 - 31,046
	$ 14,050 88,508 31,046 133,604		- - 31,046

(Continued)

55

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through other comprehensive income Domestic listed common stock Financial assets measured at amortized cost Cash and cash equivalents Time deposits (over three months) Notes and accounts receivable (including related parties) Other receivables Guarantee deposits Pledged assets-time deposits Total Financial liabilities at amortized cost Short-term borrowings Long-term borrowings Notes and accounts payable Lease liabilities Bonds payable Accrued expenses and other payables (recorded as other payables) Total			December 31, 2019	December 31, 2019	December 31, 2019
	Book value			Fair Value
			Level 1 315,134 - - - - - - - - - - - -	Level 2	Level 3 Total - 315,134 - - - - - - - - - - - - - - - - - - - - - 3,100,000 - -
	315,134 3,288,046 58,234 290,406 17,860 5,696 244,029 3,904,271 $ 4,353,009 $ 1,529,883 4,046,736 239,126 222,202 3,100,000 180,638 $ 9,318,585	315,134		- - - - - - - - - - - 3,100,000 -
		3,288,046 58,234 290,406 17,860 5,696 244,029
		3,904,271

2) Valuation techniques for financial instruments measured at fair value

A. Non-derivative financial instruments

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm's-length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

(Continued)

56

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

• B. Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models.

• 3) Transfers between Level 1 and Level 2

There was no transfer from Level 1 to Level 2 of fair value of the asset during the years ended December 31, 2020 and 2019.

• 4) Statement of changes in level 3

		Measured of fair value
		through profit or loss
		Non-derivative
		mandatorily measured at
		fair value through profit
		or loss
Balance on January 1, 2020	$	25,545
Proceeds of capital reduction of investment		(5,500)
Gains or losses:
Recognized in profit or loss		4,916
Balance on December 31, 2020	$	24,961
Balance on January 1 2019	$	25,788
Gains or losses:
Recognized in profit or loss		(243)
Balance on December 31, 2019	$	25,545

The total gain or loss above are reported under valuation gains (losses) of financial assets at fair value through profit or loss.

(Continued)

57

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(u) Financial risk management

• (i) Briefings

The Group is exposed to the following risks arising from financial instruments ：

• 1) Credit risk

• 2) Liquidity risk

• 3) Market risk

In this note expressed the information on risk exposure and objectives, policies and process of risk measurement and management. For detailed information, please refer to the related notes of each risk.

(ii) Structure of risk management

The Group’s finance department provides business services for the overall internal department. It sets the objectives, policies and processes for managing the risk and the methods used to measure the risk arising from both the domestic and international financial market operations.

The Group minimizes the risk exposure through financial instruments. The Board of Directors regulated the use of financial instruments in accordance with the Group’s policy about risks arising from financial instruments, such as interest rate risk, credit risk, the use of nonderivative financial instruments, and the investments of excess liquidity. The internal auditors of the Group continue with the review of the amount of the risk exposure in accordance with the Group’ s policy and the risk management policies and procedures. The Group has no transactions in financial instruments (including derivative financial instruments) for the purpose of speculation.

(iii) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investment securities.

1) Accounts receivable and other receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Group’ s customer base, including the default risk of the industry and country in which customers operate, as these factors may have an influence on credit risk.

The Group has established a credit policy. Credit limits are established for each customer. Customers that fail to meet the Group’ s benchmark creditworthiness may transact with the Group only on a prepayment basis.

(Continued)

58

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Investment

The credit risk exposure in the bank deposits, fixed income investments and other financial instruments are measured and monitored by the Group’s management. Since the Group’ s transaction counterparties and contractually obligated counterparties are banks, financial institutes and corporate organizations with good credits, there are no compliance issues, and therefore no significant credit risk.

3) Guarantees

The Group is only permissible to provide financial guarantees to subsidiaries. Please refer to note (13)(a).

(iv) Liquidity risk

The Group manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Group’ s management supervises the banking facilities and ensures in compliance with the terms of the loan agreements.

The loans from the bank and the bonds payable are important sources of liquidity for the Group. Please refer to note (6)(j) for unused short-term bank facilities as of December 31, 2020 and 2019.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Group is exposed to currency risk on revenue and borrowings that are denominated in a currency other than the respective functional currencies of the Group’ s entities, primarily the New Taiwan Dollars (TWD). The Group uses natural hedging strategy in exposing the current and future currency risk that arises from cash flows of foreign currency asset and liability. Foreign currency gains (losses) from assets and liabilities are subsequently offset by foreign currency losses (gains) to hedge the foreign currency risk.

2) Interest rate risk

The Group borrows funds on interest rate, which has risk exposure to cash flow. The bonds payable are fixed-interest-rate debts. Changes in market interest rates lower the effect on future cash flow.

3) Other market price risk

The Group is exposed to equity price risk due to the investments in non-listing equity securities, corporate banks, listing equity securities that measure the fair value of the publicly quoted price, and quoted open-ended fund at fair value.

(Continued)

59

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Capital management

The Group maintains the capital based on the current operating characteristics of the industry, future development, and changes in external environment, to assure there is financial resource and operating plan to support working capital, capital expenditures, and debt redemption and dividend payment and so on. The management decides the optimized capital by using appropriate debt-toasset ratio. To maintain a strong capital base, the Group enhances the return on equity by optimizing debt-to-assets ratio. As of December 31, 2020 and 2019, the Group’s debt-to-assets ratio at the end of the reporting date was as follows:

		December 31,	December 31,
		2020	2019
Total liabilities	$	9,733,903	10,022,256
Total assets		19,483,837	19,956,619
Debt-to-equity ratio		50 %	50 %

There were no changes in the Group’s approach to capital management during the years.

(w) Investing and financing activities not affecting current cash flow

The Group’ s investing activities which did not affect the current cash flow in the years ended December 31, 2020 and 2019.

Reconciliation of liabilities arising from financing activities was as follows:

Short-term borrowings Long-term borrowings Bonds payable Lease liabilities Guarantee deposits (recorded as other non-current liabilities- others) Total liabilities from financial activities Short-term borrowings Long-term borrowings Bonds payable Lease liabilities Guarantee deposits (recorded as other non-current liabilities- others) Total liabilities from financial activities	January 1, 2020 $ 1,529,883 4,046,736 3,100,000 222,202 961 $ 8,899,782 January 1, 2019 $ 939,753 5,141,068 3,100,000 273,281 608 $ 9,454,710	Cash flows (1,334,943) (643,754) 2,100,000 (46,581) (293) 74,429 Cash flows 590,130 (1,001,471) - (51,079) 353 (462,067)	Others		Non-cash changes Foreign exchange movement - (222,549) - - - (222,549) December 31, 2019 1,529,883 4,046,736 3,100,000 222,202 961 8,899,782	December 31, 2020
						194,940 3,180,433 5,200,000 167,019 668
						8,743,060
						(Continued)

60

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(7) Related-party transactions

(a) Names and relationship with related parties

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

Name of related party Relationship with the Group AGCMT GROUP LTD. The parent company Associated International INC. (AII) The entity with significant influence over the Group Associated Development INC. (ADI) A subsidiary of AII CMT Development INC. (CMD) A subsidiary of AII ASSOCIATED INTERNATIONAL Substantial related party (HONG KONG) LIMITED

(b) Significant related party transactions

(i) Freight revenue

The Group has no significant transaction amount with related parties.

(ii) Logistic and agent revenue

The amounts of significant sales transactions and accounts receivable between the Group and its related parties were as follows:

its related parties were as follows:
The entities with significant influence over the Group	Revenue 2020 2019 $ 62,324 58,593	Accounts Receivable- related-parties
	2020 $ 62,324	December 31, 2020 11,864	December 31, 2019
			16,873

The Group’s selling price for related parties is cost, plus, fixed percentage when the related parties receive cash from customers; the related parties pay the Group immediately. Amounts receivable from related parties were uncollateralized, and no expected credit loss were required after the assessment by the management.

• (iii) Operating expense

The entities with significant influence over the Group Others	Operating	expense
	2020 $ 6,582 8,225 $ 14,807	2019
		6,840 8,519
		15,359

The Group entered into service agreements with its related parties from March 2019 to February 2024. The prices are similar to those of the market prices, and they are being paid monthly.

(Continued)

61

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Post-employment benefits	2020 $ 56,163 1,015 $ 57,178	2019
		55,070 11,257
		66,327

(8) Pledged assets

The carrying values of pledged assets were as follows:

Assets	Subject	December 31, 2020 $ - 352,660 56,355 899,336 8,004,473 217,955 18,624 $ 9,549,403	December 31, 2019
Investments accounted for using equity method – stock Financial assets at fair value through other comprehensive income – stock Financial assets at fair value through profit or loss – stock Property, plant and equipment – Land Transportation and other equipment (including equipment prepayment) Other current financial assets (pledged assets-time deposit) Other non-current financial assets (refundable deposits and pledged assets-time deposits)	Commercial paper payable – and short-term loans and credit lines Commercial paper payable – and short-term loans and credit lines Short-term borrowings and credit lines of loans Short-term borrowings and credit lines Long-term borrowings and credit lines Long-term borrowings Guarantee for construction payment, warehouse deposits, short-term borrowings and import duty		296,973 92,950 - 899,336 9,097,270 227,935 21,790
			10,636,254

(9) Commitments and contingencies

(a) The Group had issued guarantee promissory notes amounting to $5,647,160 and 3,130,960 as of December 31, 2020 and 2019, respectively, as guarantee for bonds payable.

(b) As of December 31, 2020, the Group still had several long-term leases of its ships with customers in effect. The ending periods of the contracts are from March 2021 to April 2022.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(Continued)

62

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(12) Other

(a) A summary of current-period employee benefits, depreciation and amortization, by function, is as follows:

By function By item	2020	2020	2020	2019	2019	2019
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation (Note) Amortization	396,255 10,591 5,696 24,415 915,174 -	214,938 16,663 9,159 8,536 13,167 3,211	611,193 27,254 14,855 32,951 928,341 3,211	413,510 9,623 5,087 27,125 950,560 -	212,858 16,572 9,795 9,581 10,139 3,185	626,368 26,195 14,882 36,706 960,699 3,185

Note: excluding the deduction of rental income of $140 both for the years ended December 31, 2020 and 2019.

(13) Other disclosures

• (a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year ended December 31, 2020:

(i) Loans to other parties:

															(In Th	ousands of Ne	w Taiwan Dollars)
No	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower (note 1)	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits (note 2)	Maximum limit of fund financing (note 3)	Note
													Item	Value
1 1 1 1 1 1 1 1 2 2 2 2	CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK ATI ATI ATI ATI	CPN CHN CPD CPC CHM CPG CTD CTU HIL CST APT PTL	Other receivable due from related parties 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Y Y Y Y Y Y Y Y Y Y Y Y	96,102 140,500 42,394 295,050 313,596 365,300 703,905 661,755 10,000 50,000 54,000 22,000	96,102 140,500 - 252,900 313,596 365,300 703,905 661,755 - - 38,000 14,000	96,102 140,500 - 252,900 313,596 365,300 703,905 661,755 - - 38,000 14,000	- - - - - - - - 1.20% 1.20% 1.20% 1.20%	2 2 2 2 2 2 2 2 1 2 1 1	- - - - - - - - 113,344 - 118,050 55,279	Operating 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	- - - - - - - - - - - -		- - - - - - - - - - - -	8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 113,344 246,855 118,050 55,279	8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 8,871,403 246,855 246,855 246,855 246,855	Transactions in the left column had been eliminated during the preparation of consolidated financial statements ″ ″ ″ ″ 〃 〃 〃 〃 〃 〃 〃

(Continued)

63

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 1: 1.Represents entities with business dealings. 2. Represents where an inter-company or inter-firm short-term financing facility is necessary. Note 2 : For entities who have business with the Company, the amount of endorsements permitted for a single company shall not exceed the transaction amount in the last fiscal year and 40% of the lender’s net worth. For entities who have short-term financing needs, amount shall not exceed 40% of the lender’s net worth. The amount lendable to directly or indirectly wholly owned foreign subsidiaries is not limited by the restriction of 40% of the lender’s net worth, only the total amount lending limit shall still be no more than the net worth of each subsidiary.

Note 3: The total amount available for financing purposes shall not exceed 40% of lender’s net worth. Investee whose voting shares, directly or indirectly, owned by the Company is unrestricted by the limitation mentioned above; however, the amount available for financing shall not exceed 100% of net worth of the investee.

(ii) Guarantees and endorsements for other parties:

		(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
No.	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise (note2, note3)	Highest balance for guarantees and endorsements during the period (note 4)	Balance of guarantees and endorsements as of reporting date (note 4)	Actual usage amount during the period (note 4)	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements / guarantees to third parties on behalf of parent company	Endorsements / guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0 0 0 0 0 1 1 1 1	THE COMPANY 〃 〃 〃 〃 CMT HK 〃 〃 〃	ATI CTU CTD CFR CPN CHN CEP CHM THE COMPANY	Subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Subsidiary Subsidiary Subsidiary Parent company	14,624,901 14,624,901 14,624,901 14,624,901 14,624,901 13,307,104 13,307,104 13,307,104 13,307,104	100,000 632,250 632,250 1,249,045 1,264,500 851,149 898,636 916,622 3,653	- 252,900 252,900 1,249,045 1,264,500 698,004 898,638 916,622 3,653	- 126,450 189,675 558,783 516,659 667,375 666,884 454,608 3,653	- - - - - - - - -	% - % 2.59 % 2.59 % 12.81 % 12.97 % 7.16 % 9.22 % 9.40 % 0.04	14,624,901 14,624,901 14,624,901 14,624,901 14,624,901 13,307,104 13,307,104 13,307,104 13,307,104	Y Y Y Y Y - - - -	- - - - - - - - Y	- - - - - - - - -

Note1: The total amount of external endorsements and/or guarantees shall worth no more than 150% of the Company’s net worth. Among which the amount of endorsements/ guarantees for any single (1) whose voting shares are 100% owned by the Company shall not exceed 150% of the Company’s net worth. (2) company whose more than 80% voting shares are owned by the Company shall not exceed 30% of the Company’s net worth.

• Note2: CMT HK’s total amount of external endorsements/ guarantees shall not exceed 150% of its net worth. Among which, the amount of endorsements/ guarantees for any single (1) investee who has, directly or indirectly, 100% voting shares of the Company and whose voting shares are 100% owned by the Company shall not exceed 150% of the Company’s net worth. (2) an entity who has more than 80% voting shares and is owned directly by the Company shall not exceed 30% of the Company’s net worth. (3) an entity who has less than 80% voting shares and is owned directly by the Company shall not exceed 10% of the Company’s net worth.

Note3: The amount was translated to the NTD at the exchange rates at the reporting date.

(iii) Securities held at the reporting date (excluding investment in subsidiaries, associates and joint ventures):

						(In Thousands of	(In Thousands of	New Taiwan Dollars)	New Taiwan Dollars)
Name of holder	Category and name of security	Relationship with company	Account title		Ending	balance		Highest balance during the period Percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	percentage of ownership (%)	Fair value / net value
THE COMPANY 〃 〃 HIL 〃 〃	Yang Ming Marine Transport Corporation Asia Pacific Emerging Industry Venture Capital Co., Ltd. Taiwan Navigation Co., Ltd. CHINA CONTAINER TERMINAL CORP. SEA & LAND INTERATED CORP. DIMERCO EXPRESS	- - - - - -	Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss Current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss	4,798 1,950 24,420 23,788 3,187 3,285	119,098 24,961 515,262 544,745 64,856 217,795	0.18 % 2.78 % 5.85 % 16.03 % 4.07 % 2.61 %	119,098 24,961 515,262 544,745 64,856 217,795	0.18% 2.78% 5.85% 16.03% 7.05 % 2.61 %

(Continued)

64

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title		Ending	balance		Highest balance during the period Percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	percentage of ownership (%)	Fair value / net value
MHI 〃	DIMERCO EXPRESS CHINA CONTAINER TERMINAL CORP.	- -	Ccurrent financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income	6,288 5,610	416,895 128,469	4.99 % 3.78 %	416,895 128,469	4.99 % 3.78 %

• (iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock: None

• (v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None

• (vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None

• (vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship		Transaction details	Transaction details	Transaction details	Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/ sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accoun ts receivable (payable)
THE COMPANY ATI CST ATI MHT ATI APT ATI	ATI THE COMPANY ATI CST ATI MHT ATI APT	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	Freight cost Freight revenue Freight revenue Freight cost Freight revenue Freight cost Freight revenue Freight cost	528,595 (528,595) (113,294) 113,294 (100,434) 100,434 (122,524) 122,524	% 96 % (50) % (99) % 12 % (99) % 11 % (100) % 13	Depending on the demand for funding of subsidiaries 〃 〃 〃 〃 〃 〃 〃	- - - - - - - -		(56,450) 56,450 21,552 (21,552) 17,314 (17,314) 13,367 (13,367)	(97)% 30% 100% (14)% 100% (11)% 100% (9)%	Note 1 〃 〃 〃 〃 〃 〃 〃

Note1: Transactions in the left column had been written off during the preparation of the consolidated financial statements.

(Continued)

65

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

					(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts	Note
					Amount	Action taken
CMT HK 〃 〃 〃 〃 〃	CTD CTU CHM CPC CHN CPG	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	703,905 661,755 313,596 252,900 140,500 365,300	Note1 〃 〃 〃 〃 〃	- - - - - -		- - - - - -	- - - - - -	Note 2 〃 〃 〃 〃 〃

Note1: Accounts receivable from related parties are not applies for turnover rate.

Note2: Transactions in the left column had been eliminated during the preparation of the consolidated financial statements.

(ix) Trading in derivative instruments: None

• (x) Business relationships and significant intercompany transactions:

No. (Note 1)	Name of company	Name of counter-party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
1 2 4 5 6 6 6 6 6 6	ATI CST APT MHT CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK	THE COMPANY ATI ATI ATI CTD CTU CHM CPC CHN CPG	2 3 3 3 3 3 3 3 3 3	Operating revenues Operating revenues Operating revenues Operating revenues Other receivables 〃 〃 〃 〃 〃	528,595 113,294 122,524 100,434 703,905 661,755 313,596 252,900 140,500 365,300	Price depends on the market, and the receivables depend on funding demand in the credit period 〃 〃 - - - - - -	16.88% 3.62% 3.91% 3.21% 3.61% 3.40% 1.61% 1.30% 0.72% 1.87%

Note 1: The companies are coded as follows:

1. 0 represents the parent company.

2. The subsidiaries are coded sequentially beginning from 1 in the order of companies’ names.

Note 2: The relationships with transactions are as follows:

1. Transactions from the parent company to its subsidiaries.

2. Transactions from the subsidiaries to the parent company.

3. Transaction between subsidiaries.

(Continued)

66

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the year ended December 31, 2020:

(In Thousands of Shares)

(In Thousands of New Taiwan Dollars)

Name of investor	Name of investee	Location	Main Businesses and Products	Original I Amo	nvestment unt	Balance a	s of December	31, 2020	The highest holdings in the period	Net I	ncome
				December 31, 2020	December 31, 2019	Shares (thousands)	Percentage of Ownership	Carrying Value	Percentage of Ownership (%)	(Losses) of the Investee	Share of profits/losses of investee	Note
The Company 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 CMTS 〃 CMT HK 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 HIL ATI 〃 〃 〃 〃	CMTS CMT HK CMTL AGMI HIL MHI ATI TNCL CMTTSL TGEM UNH UHD AGM CFR CEP CPS CPG CPC CHT CPN CPD CTD CTU CHM CHN CHI CIM CMTS TNCL CST HYT MHT APT PTL	Singapore Hong Kong Taiwan 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Singapore 〃 Hong Kong 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Singapore Taiwan 〃 〃 〃 〃 〃	Investment holding of ship- owning companies Investment holding of ship- owning companies Warehouse management Investment 〃 〃 Container trucking Bulk-carrier transportation Travel Bulk-carrier transportation Gasoline international trade Investment Automobile and its parts manufacturing Bulk-carrier transportation 〃 Bulk-carrier transportation 〃 〃 Bulk-chartering services Bulk-carrier transportation 〃 〃 〃 〃 〃 Investment management 〃 Investment holding of ship- owning companies Bulk-carrier transportation Container trucking 〃 〃 〃 〃	4,282 34,356 734,058 1,000 685,000 271,300 500,000 Note 5 20,000 601,200 - - 30,000 646,300 649,110 56,200 168,600 154,550 281 674,400 1,180,200 365,300 365,300 421,500 421,500 281 28,100 1,331,940 - 86,642 28,932 30,568 30,719 30,000	4,282 34,356 689,558 1,000 785,000 101,300 500,000 1,007,412 20,000 601,200 1,000 1,000 30,000 646,300 649,110 56,200 168,600 154,550 281 674,400 1,180,200 365,300 365,300 421,500 421,500 281 28,100 1,331,940 321,956 86,642 28,932 30,568 30,719 30,000	217 12,000 23,650 100 68,500 27,130 50,000 Note 5 2,000 61,623 - - 3,000 29,900 23,100 2,000 6,000 5,500 10 240 420 13,000 13,000 150 150 0.1 10 62,918 Note 6 8,200 3,000 3,000 3,000 3,000	% 0.34 % 100 % 100 % 100 % 100 % 100 % 100 % - % 100 % 12 % - % - % 30 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 99.66 % - % 100 % 100 % 100 % 100 % 100	4,898 8,871,403 1,098,956 969 1,043,302 547,896 617,139 Note 5 4,247 605,622 - - 24,670 703,988 649,551 56,415 187,223 178,818 5,320 753,703 1,154,209 356,194 417,454 422,570 418,807 (510) 28,751 1,435,690 Note 6 94,868 31,838 54,850 38,446 26,125	% 0.34 % 100 % 100 % 100 % 100 % 100 % 100 % 7.459 % 100 % 12 % 100 % 100 % 30 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100.00 % 99.66 % 2.947 % 100 % 100 % 100 % 100 % 100	(904) 101,034 42,531 (45) 59,356 224,931 33,381 Note 5 (1,514) 243,945 (34) (34) (12,357) 243 3,931 (56) 23,135 (422) (115) 29,885 (11,464) (28,757) 37,509 39,156 33,606 (158) 240 (904) Note 6 2,767 (3,148) 11,672 2,368 (2,817)	(3) 101,034 42,531 (45) 59,356 224,931 33,381 31,920 (1,514) 29,273 (34) (34) (3,707) Has been recognized as investment incomes(losses) by CMTS 〃 Has been recognized as investment incomes(losses) by CMT HK 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 - Has been recognized as investment incomes(losses) by ATI - - - -	Note1、Note4 〃 〃 〃 〃 〃 〃 Note5 Note1、Note4 Note2 Note1、Note4 〃 Note2 Note1、Note3 、Note4 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Note 6 Note1、 Note4 〃 〃 〃 〃

Note1: Subsidiaries controlled by the parent company. Note2: Investees affected by the comprehensive shareholdings of the Group. Note3: The amount was translated to the NTD at the exchange rates at the reporting date. Note4: The account had been written off during the preparation of the consolidated financial statements. Note5: A part of shares had been disposed in December 2020, resulting in the investment to be reported as current financial assets at fair value through other comprehensive income. Please refer to Note 6(5.) Note6: All shares were disposed in 2020.

(c) Information on investment in mainland China: None

(Continued)

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CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (d) Major shareholders:

Shareholder’s Name	Shares	Percentage
AGCMT GROUP LTD.	79,685,475	% 40.35
Associated International INC. (AII)	42,924,297	% 21.73

(14) Segment information

(a) General information

The Group’s reportable segments consist of the Land Transportation, and the Logistics Segment and the Sea Transportation Segment. The land transportation and the logistics segment engage in the container transportation business, warehousing business, and freight agent business. And the sea transportation segment engages in the bulk carrier business. The Group’s reportable segments are the strategic business units that provide different kinds of transportation services. Each strategic business unit requires different services and marketing strategies, thus, should be managed separately.

(b) Reportable segment information

The amounts of the Group’s reportable segments are the same as those in the report used by the chief operating decision maker. The accounting policies for the operating segments are the same as those in Note 4, which describe significant accounting policies. The Group’s operating segments’ income before tax was the foundation for the chief operating decision maker to evaluate performance. There was no transfer of revenue between segments.

Revenue from external customers Intersegment revenue Total revenues Segment income before tax Reportable segment assets			2020		Total
	Inland trucking and terminal & logistics department $ 1,490,667 - $ 1,490,667 $ 18,726	Shipping department 1,597,110 - 1,597,110 153,528	Others 43,338 - 43,338 11,110
					3,131,115 -
					3,131,115
					171,511

(Continued)

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CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Revenue from external customers Intersegment revenue Total revenues Segment income before tax Reportable segment assets	Inland trucking and terminal & logistics department $ 1,829,819 - $ 1,829,819 $ 67,243		2019		Total
		Shipping department 1,898,416 - 1,898,416 388,479	Others 34,490 - 34,490 3,929
					3,762,725 -
					3,762,725
					459,651

(c) Entity-wide information

• (i) The Group’s industrial information is the same as the one in reportable segments.

• (ii) The geographic information of the Group sales that was presented by customer location, and the non-current assets that were presented by location were as follows:

• 1) Revenue from external customers:

2)	Continent Asia America Europe Oceania Non-current Assets: Country Taiwan Hong Kong Singapore	2020 $ 1,528,405 43,351 1,080,266 479,093 $ 3,131,115 2020 $ 2,476,149 7,476,849 2,390,318 $ 12,343,316	2019
			1,864,309 - 1,347,814 550,602
			3,762,725
			2019
			2,575,095 8,541,061 2,708,318
			13,824,474

Non-current assets include property, plant and equipment, investment property, intangible assets, and other assets, not including financial instruments, deferred tax assets.

(Continued)

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CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Major customers

Sales to individual customers constituting over 10% of the total revenue in the consolidated statements of income of 2020 and 2019 are summarized as follows:

Customer F Company A Company R Company S Company	Nature of services	2020 Amount ％ $ 479,092 15 454,389 15 375,744 12 345,957 11 $ 1,655,182 53	2019	2019
		Amount $ 479,092 454,389 375,744 345,957 $ 1,655,182	Amount 550,602 738,508 330,962 463,144 2,083,216	％
	Vessel transportation Container transportation Vessel transportation Vessel transportation			15 20 9 12
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