Stock Code:2612

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2021 and 2020 (Restated)

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

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

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) 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 8 8～10 10～13 13 13～41 42～43 44 44～45 45 45 45～48 48～51 51～52 52 52 52～54

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of significant accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
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

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KPMG

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

Independent Auditors’ Review Report

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Chinese Maritime Transport Ltd. and its subsidiaries as of June 30, 2021 and 2020 (restated), and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2021 and 2020 (restated), as well as the changes in equity and cash flows for the six months ended June 30, 2021 and 2020 (restated), and notes to the consolidated financial statements, including a summary of significant accounting policies. The management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As stated in Note (4)(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $1,858,440 thousand and $1,866,792 thousand, constituting 9.75% and 9.55% of the consolidated total assets; and the total liabilities amounting to $688,436 thousand and $696,608 thousand, constituting 8.73% and 7.17% of the consolidated total liabilities as of June 30, 2021 and 2020, respectively; as well as the total comprehensive income amounting to $9,590 thousand, $5,504 thousand, $14,219 thousand and $11,196 thousand, constituting 0.67%, 55.95%, 0.83% and 121.06% of the absolute value of the consolidated total comprehensive income for the three months and the six months ended June 30, 2021 and 2020, respectively.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Furthermore, as stated in Note (6)(e), the other equity accounted investments of Chinese Maritime Transport Ltd. and its subsidiaries in its investee companies of $604,257 thousand and $1,654,221 thousand as of June 30, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $5,956 thousand, $21,586 thousand, $11,780 thousand and $45,780 thousand for the three months and the six months ended June 30, 2021 and 2020, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Chinese Maritime Transport Ltd. and its subsidiaries as of June 30, 2021 and 2020 (restated), and of its consolidated financial performance for the three months and six months ended June 30, 2021 and 2020 (restated), as well as its consolidated cash flows for the six months ended June 30, 2021 and 2020 (restated) in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Yiu-Kwan Au and Jui-Lan Lo.

KPMG

Taipei, Taiwan (Republic of China) August 6, 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 review such consolidated financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of June 30, 2021 and 2020

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2021, December 31 and June 30, 2020 (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 o 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 1900 Other non-current assets 1980 Other non-current financial assets (notes (6)(i) and (8)) Total assets	June 30, 2021 Amount % $ 2,831,034 15 r 564,944 3 327,280 2 10,323 - 71,445 - 310,782 2 4,115,808 22 835,227 4 1,466,960 8 604,257 3 11,740,135 62 164,239 1 34,176 - 9,538 - 17,355 - 58,362 - 18,641 - 14,948,890 78 $ 19,064,698 100	December 31, 2020 (Restated) Amount % 3,814,015 20 634,690 3 285,931 1 11,864 - 71,902 - 333,361 2 5,151,763 26 208,915 1 1,188,476 7 605,621 3 12,107,583 62 162,059 1 34,535 - 9,798 - 17,355 - 38,108 - 18,624 - 14,391,074 74 19,542,837 100	June 30, 2020 (Restated) Amount % 3,192,405 16 274,973 2 262,960 1 14,577 - 72,743 - 290,225 2 4,107,883 21 104,419 1 352,977 2 1,654,221 8 13,035,388 67 169,044 1 35,566 - 10,082 - 19,206 - 33,453 - 24,161 - 15,438,517 79 19,546,400 100 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 2216 Dividends payable 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 2580 Non-current lease liabilities (note (6)(k)) 2640 Net defined benefit liability, non-current 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 retained earnings 3400 Other equity interest Total equity attributable to owners of parent 35XX Equity attributable to predecessors' interests under common control 3610 Non-controlling interests Total equity Total liabilities and equity	June 30, 2021		December 31, 2020 (Restated)		June 30, 2020 (Restated) Amount % 2,080,508 11 9,521 - 158,538 1 100,155 - 157,988 1 11,368 - 41,259 - 3,088 - 2,945,890 15 5,508,315 28 400,000 2 3,030,658 16 607,906 3 124,846 1 40,377 - 958 - 4,204,745 22 9,713,060 50 1,974,846 10 53,411 - 1,747,570 9 535,690 3 6,135,633 31 8,418,893 43 (676,183) (3) 9,770,967 50 35,642 - 26,731 - 9,833,340 50 19546400 100
				Amount %		Amount %
						194,940 1 34,136 - 166,113 1 140,110 1 - - 10,752 - 44,533 - 2,937 - 2,912,538 15 3,506,059 18 2,900,000 15 2,567,895 13 606,529 3 122,486 1 31,704 - 668 - 6,229,282 32 9,735,341 50 1,974,846 10 53,411 - 1,747,570 9 535,690 3 6,322,409 33 8,605,669 45 (883,992) (5) 9,749,934 50 32,893 - 24,669 - 9,807,496 50 19542837 100

See accompanying notes to consolidated financial statements.

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Except 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 (notes (6)(b), (c), (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 disposals of property, plant and equipment, net (note (6)(f)) 7230 Foreign exchange gains or losses, net 7235 Gains on financial assets at fair value through profit or loss (note (6)(b)) 7590 Miscellaneous disbursements 7900 Profit from continuing operation before tax 7950 Less: Income tax expenses (note (6)(n)) Profit 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss 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 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 Total other comprehensive income that may be reclassified to profit or loss 8300 Other comprehensive income Total comprehensive income Profit, attributable to: Owners of parent Predecessors' interests under common control Non-controlling interests Comprehensive income attributable to: Owners of parent Predecessors' interests under common control Non-controlling interests Earnings per share(note (6)(p)) 9750 Basic net income per share (NT dollars) $ 9850 Diluted net income per share (NT dollars) $	For the three mont	hs ended June 30	For the six month	s ended June 30 2020 (Restated) Amount % 814,427 53 720,394 46 17,826 1 1,552,647 100 672,484 43 591,524 38 11,700 1 1,275,708 82 276,939 18 190,272 12 51 - 190,323 12 86,616 6 11,327 1 (85,574) (6) 45,780 3 20,040 1 1,904 - (2,933) - 67,530 4 (288) - 57,786 3 144,402 9 13,157 1 131,245 8 (4,114) - (5,800) - (9,914) - (112,831) (8) (17,748) (1) (130,579) (9) (140,493) (9) (9,248) (1) 135,085 8 (2,194) (1,646) - 131,245 8 (5,408) (1) (2,194) - (1,646) - (9,248) (1) 0.68 0.68
	2021 Amount % $ 373,549 46 432,441 54 931 - 806,921 100 337,103 42 355,661 44 1,909 - 694,673 86 112,248 14 108,662 14 404 - 109,066 14 3,182 - 27,916 3 (22,853) (3) 5,956 1 2,442 - (635) - 7,289 1 787,580 98 38 - 807,733 100 810,915 100 6,637 - 804,278 100 859,811 107 - - 859,811 107 (213,615) (26) (14,339) (2) (227,954) (28) 631,857 79 $ 1,436,135 179 $ 805,652 100 - - (1,374) - $ 804,278 100 $ 1,437,509 179 - - (1,374) - $ 1,436,135 179 4.08 4.08	2020 (Restated) Amount % 385,615 52 344,796 47 9,824 1 740,235 100 325,339 44 278,646 37 5,556 1 609,541 82 130,694 18 95,408 14 162 - 95,570 14 35,124 4 7,564 1 (38,504) (5) 21,586 3 7,649 1 (1,121) - (3,020) - 106,141 15 (280) - 100,015 15 135,139 19 5,141 1 129,998 18 76,562 10 7,496 1 84,058 11 (193,715) (26) (30,178) (4) (223,893) (30) (139,835) (19) (9,837) (1) 132,392 18 (1,026) - (1,368) - 129,998 18 (7,443) (1) (1,026) - (1,368) - (9,837) (1) 0.67 0.67	2021 Amount % 751,013 47 839,851 52 9,364 1 1,600,228 100 649,385 41 695,511 43 8,988 1 1,353,884 85 246,344 15 211,208 13 326 - 211,534 13 34,810 2 37,172 3 (52,970) (3) 11,780 1 6,756 - (544) - 565 - 994,655 62 (61) - 997,353 63 1,032,163 65 11,421 1 1,020,742 64 785,623 49 - - 785,623 49 (76,313) (5) (13,144) (1) (89,457) (6) 696,166 43 1,716,908 107 1,026,337 64 (2,412) - (3,183) - 1,020,742 64 1,722,503 107 (2,412) - (3,183) - 1,716,908 107 5.20 5.19

See accompanying notes to consolidated financial statements.

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

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity For the six months ended June 30, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

				Equity attributable t	Equity attributable t	Equity attributable t	o owners of parent	o owners of parent						Equity attributable to predecessors' interests under common control	Non- controlling interests	Total equity
Share capital		Capital surplus		Retaine	d earnings			Tota	l	other equity int	e	rest	Total equity attributable to owners of parent
								Exchange differences on translation of foreign financial statements		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income		Total other equity interest
Ordinary shares			Legal reserve	Special reserve	Unappropriated earnings		Total retained earnings
$ 1,974,846 - 1,974,846 - - - - - - - $ 1,974,846 $ 1,974,846 - - - - - - - - $ 1,974,846		53,411 -	1,715,537 -	359,487 -		6,366,772 - 6,366,772 (32,033) (176,203) (157,988) (366,224) 135,085 - 135,085 6,135,633 6,322,409 (32,186) (348,302) (315,975) 1,026,337 (8,123) 1,018,214 (2,399) - 6,641,761	8,441,796 -	(541,143) - (541,143) - - - - - (130,579) (130,579) (671,722) (1,154,720) - - - - (89,457) (89,457) - - (1,244,177)		5,453 -		(535,690) - (535,690) - - - - - (140,493) (140,493) (676,183) (883,992) - - - - 704,289 704,289 - - (179,703)	9,934,363 -	- 37,836	- 28,377 28,377 - - - - (1,646) - (1,646) 26,731 24,669 - - - (3,183) - (3,183) - - 21,486	9,934,363 66,213
		53,411	1,715,537	359,487			8,441,796			5,453			9,934,363	37,836		10,000,576
		- - -	32,033 - -	- 176,203 -						- - -				- - -		- - (157,988)
		-	32,033	176,203						-				-		(157,988)
		- -	- -	- -												131,245 (140,493)
		-	-	-												(9,248)
		53,411	1,747,570	535,690												9,833,340
		53,411	1,747,570	535,690												9,807,496
	- - -	- - -	32,186 - -	- 348,302 -												- - (315,975)
	- -	- -	- -	- -												1,020,742 696,166
	-	-	-	-												1,716,908
	- -	- -	- -	- -												- (32,880)
	$ 1,974,846	53,411	1,779,756	883,992												11,175,549

See accompanying notes to consolidated financial statements.

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation and amortization expense Expected credit loss Net gain 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 Others Total adjustments to reconcile profit (loss) Changes in operating assets: Decrease (increase) in notes and accounts receivable (including related parties) Decrease (increase) in other current assets Decrease (increase) in other current financial assets Changes in operating liabilities: Increase (decrease) in notes and accounts payable Decrease in current contract liabilities Decrease (increase) 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 Dividend 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 disposal of financial assets at fair value through other comprehensive income 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 property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in other non-current assets Decrease in other current financial assets Increase in other non-current financial assets Decrease in equity attributable to predecessors' interests under common control Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Repayments of bonds Repayments of long-term borrowings Payment of lease liabilities Others Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the six month	s ended June 30 2020 (Restated) 144,402 473,637 51 (67,530) 85,574 (20,040) (4,028) (45,780) (1,904) (316) 419,664 12,818 (18,655) (16,217) (22,054) (81,165) (9,806) (60,881) (402) (152,254) (174,308) 245,356 389,758 23,442 4,028 (109,536) (25,981) 281,711 (41,957) - (178,258) - (56,427) 10,847 (23,433) 61,639 (2,371) - (229,960) 550,625 (400,000) (326,978) (32,739) (3) (209,095) (28,889) (186,233) 3,378,638 3,192,405
	2021 $ 1,032,163 442,573 326 (994,655) 52,970 (6,756) (30,787) (11,780) 544 (261) (547,826) (40,134) 14,002 5,898 (20,234) 24,276 (16,716) 16,802 (3,892) 20,470 236 (547,590) 484,573 7,534 8,864 (65,233) (11,548) 424,190 - 507,139 (37,101) 475,190 (146,476) 609 (21,743) 37,852 (17) (32,880) 782,573 465,050 (2,300,000) (306,967) (29,585) 756 (2,170,746) (18,998) (982,981) 3,814,015 $ 2,831,034

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2021 and 2020

(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 six months ended June 30, 2021 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)(b) for related information.

The Company had acquired 40% ownership of AG MOTORS CORP(AGM) with the cash considerations of $32,800 on April 1, 2021. The percentage of ownership of AGM held by the Group had increased to 70%, thereby the Group had obtained the control of AGM. The transaction was accounted for as a business reorganization under common control in compliance with the Accounting Research and Development Foundation's IFRS Question and Answers. When presenting comparative consolidated financial statements, the Group presented them as if AGM had always been combined and the consolidated financial statements were restated retrospectively. Please refer to note (12)(c) 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 August 6, 2021.

(3) New standards, amendments and interpretations adopted:

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

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

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”
●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”

(Continued)

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

(b) The impact of IFRS issued by the FSC but not yet effective

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

－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
●Amendments to IAS 37 “
●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”
(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”
Amendments to IAS 12
“Deferred Tax related to
Assets and Liabilities arising
from a Single Transaction”

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 amendments narrowed the scope of the
recognition exemption so that it no longer
applies to transactions that, on initial
recognition, give rise to equal taxable and
deductible temporary differences.
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.

(Continued)

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

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 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”

(4) Summary of significant accounting policies

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies used in the financial statements are consistent with the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to note (4) of the consolidated financial statements for the year ended December 31, 2020.

(b) Basis of consolidation

Name of investor	Name of subsidiary Chinese Maritime Transport(S) Pte. Ltd. (CMTS) Chinese Maritime Transport (Hong Kong), Limited (CMTHK) Chinese Maritime Transport International Pte. Ltd. (CMTI) CMT Logistics Co., Ltd. (CMTL) Hope Investment Ltd. (HIL) AGM Investment Ltd. (AGMI) Mo Hsin Investment Ltd. (MHI) Associated Transport Inc. (ATI)	Principal activity		Shareholding	June 30, 2020 Note
			June 30, 2021 0.34 100 100 100 100 100 100 100	December 31, 2020 0.34 100 - 100 100 100 100 100
The Company 〃〃〃〃〃〃〃		Investment holding of ship-owning companies Investment holding of ship-owning companies Investment holding of ship-owning companies Warehouse management Investment Investment Investment Container trucking			0.34 100 - Note 6 100 Note 3 100 100 100 100

(Continued)

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

Name of investor	Name of subsidiary CMT Travel Service Ltd. (CMTTSL) United Nan Hai Petroleum INC (UNH) United Nan Hai Development Inc. (NHD) AG MOTORS CORP (AGM) 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) China Harmory Shipping Ltd. (CHM) China Honour shipping Ltd. (CHN) CMT Investment CO., Limited (CHI) Chinese Maritime Transport Ship Management (Hong Kong) Limited (CIM) CMTS China Champion Shipping Pte. Ltd (CCMP) China Venture Shipping Pte. Ltd (CVTR)	Principal activity		Shareholding	June 30, 2020 Note
			June 30, 2021 100 - - 70 100 100 100 100 100 100 100 100 100 100 100 100 100 100 99.66 100.00 100.00	December 31, 2020 100 100 100 70 100 100 100 100 100 100 100 100 100 100 100 100 100 100 99.66 - -
The Company 〃〃〃 CMTS 〃 CMTHK CMTHK 〃〃〃〃〃〃〃〃〃〃 CMTHK CMTI CMTI		Travel Gasoline international trade Investment Automobile and its part manufacturing 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 Bulk-carrier transportation Bulk-carrier transportation Investment Investment management Investment holding of ship-owning companies Bulk-carrier transportation Bulk-carrier transportation			100 Note 3 100 Note 1 100 Note 2 70 Note 4, Note 5 100 100 100 100 100 100 100 100 100 100 100 100 100 100 99.66 - Note 6 - Note 6

(Continued)

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

Name of investor	Name of subsidiary 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	June 30, 2020 Note
			June 30, 2021 100 100 100 100 100	December 31, 2020 100 100 100 100 100
ATI 〃〃〃〃		Container trucking Container trucking Container trucking Container trucking Container trucking			100 100 100 100 100

Note 1: Subsidiary incorporated in April 2013; and the liquidation procedures has been completed on May, 2021.
Note 2: Subsidiary incorporated in December 2015; and the liquidation procedures has been completed on February, 2021.
Note 3: Non-significant subsidiary, its financial statements have not been reviewed.
Note 4: Subsidiary was reorganized under a business reorganization under common control and included in the consolidated financial statements as of June 30, 2020, after the consolidated financial statements were restated, its financial statements as of June 30, 2020 and 2021 have not been reviewed.
Note 5: The Company had acquired 40% ownership of AGM with the cash considerations of $32,800 on April 1, 2021. The percentage of ownership of AGM held by the Group had increased to 70%, thereby the Group had obtained the control of AGM. The transaction was accounted for as a business reorganization under common control. When presenting comparative consolidated financial statements, the Group presented it as if AGM had always been combined and the consolidated financial statements were restated retrospectively.
Note 6: Subsidiary incorporated in May 2021.

(c) Employee benefits

The pension cost for an interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

(d) Income taxes

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

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

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the effective tax rate at the time of realization or liquidation and recognized directly in equity or other comprehensive income as tax expense.

(Continued)

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

(e) Business combination

The Group did not account for business combinations using the acquisition method but using the book-value method. When presenting comparative consolidated financial statements, the Group presented them as if it had always been combined and the consolidated financial statements were restated retrospectively. Please refer to note (12)(b) for related information.

The Group's purchase of a subsidiary was reorganized under a business reorganization within the Group due to the economy substance. The transaction should be recorded at carrying amounts of the sellers. When presenting comparative consolidated financial statements, the Group presented them as if it had always been combined and the consolidated financial statements were restated retrospectively. The equity held by the predecessor was attributable to the “Equity attributable to predecessors’ interests under common control “ when the consolidated balance sheets and the consolidated statement of changes in equity were prepared in the previous period. The profit held by the predecessors' was attributable to the “Predecessors’ interests under common control “ when the consolidated statements of comprehensive income were prepared in the previous period.

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

The preparation of the consolidated financial statements in conformity with IFRSs (in accordance with IAS 34 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.

In the preparation of this consolidated interim financial statements, the major sources of accounting assumptions, judgments and estimation uncertainty are consistent with note (5) of the annual consolidated financial statements for the year ended December 31, 2020.

(6) Explanation of significant accounts

Except for the following disclosures, there were no material differences in the disclosures of significant accounts between the interim consolidated financial statements for the current period and the 2020 consolidated financial statements. Please refer to note (6) of the consolidated financial statements for the year ended December 31, 2020.

(a) Cash and cash equivalents

June 30, 2021 Petty cash, checking accounts and demand deposits $ 1,644,248 Time deposits 989,524 Cash equivalents-commercial paper and reverse repurchase agreement 197,262 $ 2,831,034	December 31, 2020 (Restated) 863,841 2,475,758 474,416 3,814,015	June 30, 2020 (Restated)
		668,246 2,336,898 187,261
		3,192,405

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

(Continued)

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

(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	June 30, 2021 $ 564,944 128,596 681,670 24,961 $ 1,400,171 $ 564,944 835,227 $ 1,400,171	December 31, 2020 (Restated) 634,690 64,856 119,098 24,961 843,605 634,690 208,915 843,605	June 30, 2020 (Restated)
			274,973 51,474 27,400 25,545
			379,392
			274,973 104,419
			379,392

The gain on financial assets at fair value through profit or loss for the three months ended and six months ended June 30, 2021 and 2020 amounted of $787,580, $106,141, $994,655 and $67,530, respectively.

During the six months ended June 30, 2021 and 2020, the dividends of $24,907 and $120, respectively, related to investment at fair value through profit or loss, were recognized.

The Group did not provide any aforementioned financial assets as collateral as of June 30, 2020.

As of June 30, 2021 and 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) 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.

(Continued)

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

June 30, 2021 Equity investments at fair value through other comprehensive income Domestic listed stocks $ 1,466,960	December 31, 2020 (Restated) 1,188,476	June 30, 2020 (Restated)
		352,977

(i) Except for the following disclosures, there was no significant difference as compared with financial assets at fair value through other comprehensive income for the three months ended March 31, 2021 and 2020. Please refer to note (6)(c) of the consolidated financial statements for the year ended December 31, 2020.
(ii) Equity investments at fair value through other comprehensive income

The Group newly purchased those investments for strategic purposes amounting to $0 and $41,957 for the six months ended June 30, 2021 and 2020, respectively.

The Group disposed part of its investment in TNCL with the disposal cost amounting to $507,139 for the six months ended June 30, 2021, resulting in a disposal loss of $8,123, which was reclassified from other comprehensive income to retained earnings. There were no disposal of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments during the six months ended June 30, 2020.

During the three months and six months ended June 30, 2021 and 2020, the Group had recognized unrealized gain or loss on financial assets at fair value through other comprehensive income of gain $859,811, gain $76,562, gain $785,623 and loss $4,114, respectively.

During the six months ended June 30, 2021 and 2020, the dividends of $5,880 and $3,908, respectively, related to equity investment at fair value through other comprehensive income were recognized.

(iii) Please refer to note (6)(t) for market risk.
(iv) As of June 30, 2021, December 31 and June 30, 2020, the financial assets measured at other comprehensive income of the Group had been pledged as collateral, please refer to note (8).

(Continued)

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

(d) Notes and accounts receivable

June 30, 2021 Notes receivable $ 10,524 Accounts receivable 327,579 Less: Loss allowance (500) $ 337,603 Notes and accounts receivable, net $ 327,280 Notes and accounts receivable due from related parties, net $ 10,323	December 31, 2020 (Restated) 11,158 286,811 (174) 297,795 285,931 11,864	June 30, 2020 (Restated) 13,079 264,667 (209) 277,537 262,960 14,577

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:

	June 30, 2021
Gross carrying amount Weighted- average loss rate Loss allowance provision $ 321,470 - - 11,181 - - 5,452 9.17% 500 - - - $ 338,103 500 December 31, 2020 (Restated)		Loss allowance provision
		- - 500 -
		500
	Weighted- average loss rate - - 7.66% -	Loss allowance provision
		- - 174 -
		174

(Continued)

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

June 30, 2020 (Restated)	June 30, 2020 (Restated)	June 30, 2020 (Restated)
Gross carrying amount $ 266,948 8,692 2,106 - $ 277,746	Weighted- average loss rate - - 9.92%	Loss allowance provision
		- - 209 -
		209

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

Balance on January 1 Impairment losses reversed Balance on June 30	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 174 326 $ 500	2020 (Restated)
		158 51
		209

The Group did not provide any aforementioned notes and accounts receivable as collaterals as of June 30, 2021, December 31 and June 30, 2020.

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:

June 30, 2021 Associates $ 604,257	December 31, 2020 (Restated) 605,621	June 30, 2020 (Restated)
		1,654,221

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

Associates	For the three months ended June 30, 2021 2020 (Restated) $ 5,956 21,586	For the six months ended June 30, 2021 2020 (Restated) 11,780 45,780	For the six months ended June 30, 2021 2020 (Restated) 11,780 45,780
	2021 $ 5,956		2020 (Restated)
			45,780

(Continued)

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

(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	Effective ownership interest and voting right
			June 30, 2021	December 31, 2020 (Restated) June 30, 2020 (Restated) Note % 10.406
Taiwan Navigation Co., Ltd. (TNCL)		Taiwan	Note

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:

		June 30,
		2020
		(Restated)
TNCL	$	759,886

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

Summarized financial information of TNCL
				June 30,
				2020
				(Restated)
Current assets			$	1,699,698
Non-current assets				13,451,263
Current liabilities				(1,127,636)
Non-current liabilities				(3,999,939)
Net assets (Attributable to the investee)			$	10,023,386
		For the three		For the six
		months ended	months ended
		June 30, 2020		June 30, 2020
		(Restated)		(Restated)
Revenue	$	579,604		1,209,552
Profit from continuing operations		109,934		273,571
Other comprehensive income		(102,638)		(157,578)
Total comprehensive income (Attributable to the
investee)	$	7,296		115,993

(Continued)

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

		For the six
	months ended
	June 30, 2020
Group’s share of net assets attributable	$	1,065,702
Total comprehensive income attributable		12,069
Dividends received by associates		(34,737)
Ending balance of net assets attributable	$	1,043,034

(iv) Summarized financial information of individually insignificant associates

The summarized financial information on individually insignificant associates using the equity-accounted method is as follows:

June 30, 2021 Carrying amount of individually insignificant associates’ equity $ 604,257 For the three months ended June 30, 2021 2020 (Restated) Share of resells attributable to the Group: Profit from continuing operations $ 5,956 10,148 Other comprehensive (loss) income (14,339) (12,001) Comprehensive income $ (8,383) (1,853)	December 31, 2020 (Restated) June 30, 2020 (Restated) 605,621 611,186 For the six months ended June 30, 2021 2020 (Restated) 11,780 17,312 (13,144) (7,150) (1,364) 10,162	December 31, 2020 (Restated) June 30, 2020 (Restated) 605,621 611,186 For the six months ended June 30, 2021 2020 (Restated) 11,780 17,312 (13,144) (7,150) (1,364) 10,162
		2020 (Restated) 17,312 (7,150) 10,162

(v) Except for the following disclosures, there was no significant difference as compared with investments accounted for using the equity method for the six months ended June 30, 2021 and 2020. Please refer to note (6)(e) of the consolidated financial statements for the year ended December 31, 2020.

(Continued)

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

(vi) Pledges

As of June 30, 2021 and December 31 2020, the Group did not provide investment accounted for using equity method as collateral.

As of June 30, 2020, 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 six months ended June 30, 2021 and 2020 were as follows:

Land Cost or deemed cost: Balance on January 1, 2021 (Restated) $ 1,719,551 Additions - Disposals - Reclassifications (19,908) Effect of movements in exchange rates - Balance on June 30, 2021 $ 1,699,643 Balance on January 1, 2020 (Restated) $ 1,719,551 Additions - Disposals - Reclassifications - Effect of movements in exchange rates - Balance on June 30, 2020 (Restated) $ 1,719,551 Depreciation and impairments loss: Balance on January 1, 2021 (Restated) $ - Depreciation - Disposals - Effect of movements in exchange rates - Balance on June 30, 2021 $ -	Buildings and construction 145,317 26,513 (479) 19,908 (275) 190,984 146,964 625 (780) 281 (401) 146,689 91,898 5,678 (409) (62) 97,105	Transportation Equipment 17,671,712 98,866 (1,574) (13,544) (144,877) 17,610,583 18,762,193 53,561 (21,204) 4,240 (210,078) 18,588,712 7,658,644 392,564 (1,383) (64,232) 7,985,593		Other equipment		Under construction 26,451 101 - - (227) 26,325 28,220 - - - (329) 27,891 - - - - -	Total 20,190,101 146,476 (24,084) (13,544) (145,379) 20,153,570 21,268,711 56,427 (36,373) 8,443 (210,808) 21,086,400 8,082,518 418,142 (22,931) (64,294) 8,413,435

(Continued)

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

Balance on January 1, 2020 (Restated) Depreciation Disposals Effect of movements in exchange rates Balance on June 30, 2020 (Restated) Carrying amounts: Balance on January 1, 2021 (Restated) Balance on June 30, 2021 Balance on June 30, 2020 (Restated)	Land $ - - - - $ - $ 1,719,551 $ 1,699,643 $ 1,719,551	Buildings and construction 83,760 4,620 (600) (84) 87,696 53,419 93,879 58,993	Transportation Equipment 7,303,655 420,504 (14,126) (83,656) 7,626,377 10,013,068 9,624,990 10,962,335		Other equipment		Under construction - - - - - 26,451 26,325 27,891	Total 7,717,067 445,115 (27,430) (83,740) 8,051,012 12,107,583 11,740,135 13,035,388

(i) The pledge information is summarized in note (8).
(ii) The Group disposed of the property, plant and equipment during the six months ended June 30, 2021 and 2020 for $609 and $10,847, respectively, and the related gain or loss of disposal were a loss of $544 and a gain of $1,904, 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 ($879,122, $886,696 and $934,975 in thousand New Taiwan dollars) as of June 30, 2021, December 31 and June 30, 2020, respectively.

(iv) 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).

(Continued)

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

(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, 2021 (Restated) Additions Disposal Balance on June 30, 2021 Balance on January 1, 2020 (Restated) Disposal Balance on June 30, 2020 (Restated) Accumulated depreciation and impairment losses: Balance on January 1, 2021 (Restated) Depreciation Disposal Balance on June 30, 2021 Balance on January 1, 2020 (Restated) Depreciation Disposal Balance on June 30, 2020 (Restated) Carrying Amount: Balance on January 1, 2021 (Restated) Balance on June 30, 2021 Balance on June 30, 2020 (Restated)	Land $ 167,841 49,070 (48,891) $ 168,020 $ 194,468 (41,382) $ 153,086 $ 54,289 14,868 (24,445) $ 44,712 $ 39,345 19,122 (18,341) $ 40,126 $ 113,552 $ 123,308 $ 112,960	Buildings and construction 78,813 - - 78,813 78,813 - 78,813 30,306 7,576 - 37,882 15,153 7,576 - 22,729 48,507 40,931 56,084	Total 246,654 49,070 (48,891) 246,833 273,281 (41,382) 231,899 84,595 22,444 (24,445) 82,594 54,498 26,698 (18,341) 62,855 162,059 164,239 169,044

(Continued)

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

(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.

Owned Property
Land
Building
Cost or deemed cost:
Balance on January 1, 2021 (Restated) $ 19,094
23,811
Effect of movements in exchange rates
-
(171)
Balance on June 30, 2021
$
19,094
23,640
Balance on January 1, 2020 (Restated) $ 19,094
25,152
Effect of movements in exchange rates
-
(250)
Balance on June 30, 2020 (Restated)
$
19,094
24,902
Depreciation and impairment losses:
Balance on January 1, 2021 (Restated) $ -
8,370
Depreciation
-
238
Effect of movements in exchange rates
-
(50)
Balance on June 30, 2021
$
-
8,558
Balance on January 1, 2020 (Restated) $ -
8,251
Depreciation
-
247
Effect of movements for exchange rates
-
(68)
Balance on June 30, 2020 (Restated)
$
-
8,430
Carrying amount:
Balance on January 1, 2021 (Restated) $
19,094
15,441
Balance on June 30, 2021
$
19,094
15,082
Balance on June 30, 2020 (Restated)
$
19,094
16,472

Total
42,905
(171)
42,734
44,246
(250)
43,996
8,370
238
(50)
8,558
8,251
247
(68)
8,430
34,535
34,176
35,566

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.

There was no significant change in the fair value of investment property during the six months ended June 30, 2021 as disclosed in note (6)(h) of the consolidated financial statements for the year ended December 31, 2020.

As of June 30, 2021, December 31 and June 30, 2020, the investment property of the Group was not pledged as collateral or restricted.

(Continued)

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

(i) Other financial assets

June 30, 2021 Restricted deposits $ 37,534 Time deposits (over three months) 25,295 Other receivables 15,697 Dividends receivable 21,923 Refundable deposits 6,767 Pledged assets-time deposits 222,207 $ 329,423 Other current financial assets $ 310,782 Other non-current financial assets 18,641 $ 329,423	December 31, 2020 (Restated) 67,657 25,402 22,347 - 8,224 228,355 351,985 333,361 18,624 351,985	June 30, 2020 (Restated)
		20,859 8,310 6,401 38,435 6,568 233,813
		314,386
		290,225 24,161
		314,386

The restricted time deposits are applicable to “ The Management, Utilization, and Taxation of Repatriated Offshore Funds Act” for the Group in 2021 and 2020. The restricted time deposits accounts are used for the purpose of offshore funds only.

As of June 30, 2021, December 31 and June 30, 2020, 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

June 30, 2021 Bank loans $ 630,000 Commercial paper payable 30,000 Less: discount on commercial paper payable (10) $ 659,990 Unused credit lines $ 3,450,000 Range of interest rate 0.85%~1.12%	December 31, 2020 (Restated) 120,000 75,000 (60) 194,940 3,815,000 0.88%~1.208%	June 30, 2020 (Restated) 1,386,000 695,000 (492)
		2,080,508
		1,809,000
		0.88%~1.168%

(Continued)

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

(ii) Long-term loans

Bank	Currency	Due Year June 30, 2021 2021 $ 62,685 2022 466,275 2022 125,370 2023 508,386 2026 427,229 2027 628,363 2027 631,309 2,849,617 (544,622) $ 2,304,995 0.91%~1.83%	December 31, 2020 (Restated) 126,450 516,659 189,675 558,783 454,608 666,883 667,375 3,180,433 (612,538) 2,567,895 0.955%~3.52%	June 30, 2020 (Restated) 200,003 593,682 266,670 637,731 504,349 738,105 736,008 3,676,548 (645,890) 3,030,658 1.18%~3.52%
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 June 30, 2021 March 2021 $ - March 2021 - April 2022 400,000 August 2025 500,000 August 2025 500,000 August 2025 1,000,000 August 2025 500,000 2,900,000 (400,000) $ 2,500,000	December 31, 2020 (Restated) 900,000 1,400,000 400,000 500,000 500,000 1,000,000 500,000 5,200,000 (2,300,000) 2,900,000	June 30, 2020 (Restated) 900,000 1,400,000 400,000 - - - - 2,700,000 (2,300,000) 400,000
	Bank of Taiwan Mega Bank Shanghai Commercial Bank Shanghai Commercial Bank ″ Mega Bank ″	% 0.88 % 1.00 % 1.13 % 0.64 % 0.66 % 0.64 % 0.66

(Continued)

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

June 30, 2021 Current $ 46,006 Non-current $ 115,792	December 31, 2020 (Restated) 44,533 122,486	June 30, 2020 (Restated)
		41,259
		124,846

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

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities	For the three months ended June 30, 2021 2020 (Restated) $ 428 492	For the six months ended June 30, 2021 2020 (Restated) 800 1,022	For the six months ended June 30, 2021 2020 (Restated) 800 1,022
	2021 $ 428	2021 800
			1,022

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

		For the six months ended	For the six months ended
		June	30,
			2020
		2021	(Restated)
Total cash outflow for leases	$	30,385	33,761
Land and building leases

As of June 30, 2021, 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.

(Continued)

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

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).

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

June 30, 2021 Less than one year $ 855,923 Between one and five years 1,799 Total undiscounted lease payments $ 857,722	December 31, 2020 (Restated) 1,021,720 15,336 1,037,056	June 30, 2020 (Restated)
		804,120 3,017
		807,137

(m) Employee benefits
(i) Defined benefit plans

Given there was no significant volatility of the market or any significant reimbursement, settlement or other one-time event in the prior fiscal year, pension cost in the interim financial statements is measured and disclosed in accordance with the actuarial report measured on December 31, 2019 and 2020.

The pension costs of the defined benefit plans were as follows:

Cost of sales and operating expense	For the three months ended June 30, 2021 2020 (Restated) $ 613 629	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 613	2021 1,200	2020 (Restated)
			1,348

(ii) Defined contribution plans

The pension costs under the defined contribution plans were as follows, and the payment was made to the Bureau of Labor Insurance:

Cost of sales and operating expense	For the three months ended June 30, 2021 2020 (Restated) $ 3,127 3,041	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 3,127	2021 6,275	2020 (Restated)
			6,037

(Continued)

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

(n) Income taxes

(i) Tax expenses

The components of income tax for the three months ended and six months ended June 30, 2021 and 2020 were as follows:

and 2020 were as follows:
Current tax expense Deferred tax expense Tax expense	For the three months ended June 30, 2021 2020 (Restated) $ 6,637 6,891 - (1,750) $ 6,637 5,141	For the six months ended June 30,
	2021 $ 6,637 - $ 6,637	2021 11,421 - 11,421	2020 (Restated)
			13,157 -
			13,157

(ii) 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

Except for the following disclosures, there was no significant change for capital and other equity for the six months ended June 30, 2021 and 2020. For the related information, please refer to note (6)(o) of the consolidated financial statements for the year ended December 31, 2020.

(i) 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 shareholders’ 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 shareholders. The distribution rate is based on the proposal of the Company’ s board of directors and should be approved in the shareholders’ 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.

(Continued)

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

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 June 30, 2021, December 31 and June 30, 2020.

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

The amount of cash dividends of appropriations of earnings for 2020 had been approved in the Board of Directors’ meeting held on May 12, 2021. Other earnings distribution has been electronically voted on June 23, 2021, which has reached the threshold of statutory resolutions. The shareholders’ meeting will be held on August 31, 2021. The appropriations of earnings for 2019 had been approved in the shareholders' meeting on May 13, 2020. These earnings were appropriated as follows:

Dividends distributed to ordinary shareholders Cash	2020 $ 315,975	2019
		157,988

(Continued)

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

(ii) Other Equity (After tax)

January 1, 2021 (Restated) The Company and its subsidiaries Associates June 30, 2021 January 1, 2020 (Restated) The Company and its subsidiaries Associates June 30, 2020 (Restated)	Exchange differences on translation of foreign financial Statements $ (1,154,720) (76,313) (13,144) $ (1,244,177) $ (541,143) (112,831) (17,748) $ (671,722)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 270,728 793,746 - 1,064,474 5,453 (4,114) (5,800) (4,461)	Total (883,992) 717,433 (13,144) (179,703) (535,690) (116,945) (23,548) (676,183)

(p) Earnings per share
(i) Basic earnings per share

The calculation of basic earnings per share at June 30, 2021 and 2020 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

Profit attributable to ordinary shareholders of the Company	For the three months ended June 30, 2021 2020 (Restated) $ 805,652 132,392	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 805,652	2021 1,026,337	2020 (Restated)
			135,085

(Continued)

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

2) Weighted-average number of ordinary shares (thousands)

Weighted-average number of ordinary shares (basic)	For the three months ended June 30, 2021 2020 (Restated) 197,485 197,485	For the six months ended June 30,	For the six months ended June 30,
	2021 197,485	2021 197,485	2020 (Restated)
			197,485

3) Basic earnings per share (NTD)

For the three months ended June 30, 2021 2020 (Restated) Basic earnings per share$ 4.08 0.67	For the six months ended June 30, 2021 2020 (Restated) 5.20 0.68
	2021 5.20

(ii) Diluted earnings per share

The calculation of diluted earnings per share at June 30, 2021 and 2020 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)

Profit attributable to ordinary shareholder of the Company	For the three months ended June 30, 2021 2020 (Restated) $ 805,652 132,392	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 805,652	2021 1,026,337	2020 (Restated)
			135,085

2) Weighted-average number of ordinary shares (diluted) (thousands)

For the three months ended June 30, 2021 2020 (Restated) 197,485 197,485 17 55 197,502 197,540	For the six months ended June 30,	For the six months ended June 30,
2021 197,485 17 197,502	2021 197,485 163 197,648	2020 (Restated)
		197,485 138
		197,623

(Continued)

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

3) Diluted earnings per share (NTD)

Diluted earnings per share	For the three months ended June 30, 2021 2020 (Restated) $ 4.08 0.67	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 4.08	2021 5.19	2020 (Restated)
			0.68

(q) Revenue from contracts with customers

(i) Disaggregation of revenue

For the three months ended June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2021
Inland trucking and terminal & logistics department			Total
			433,201 42,810 218,812 112,098
			806,921
Inland trucking and terminal & logistics department	Shipping department - 272,998 112,617 385,615	Others 9,824 - - 9,824	Total
$ 344,796 - - $ 344,796			354,620 272,998 112,617
			740,235

(Continued)

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

For the six months ended June 30, 2021

Primary geographical markets Asia America Europe Oceania Primary geographical markets Asia Europe Oceania Contract balances Notes and accounts receivable (including related parties) Less: allowance for impairment Total Contract liabilities	Inland trucking and terminal & logistics department	Inland trucking and terminal & logistics department
	Inland trucking and terminal & logistics department Shipping department Others Total $ 720,394 - 17,826 738,220 - 571,197 - 571,197 - 243,230 - 243,230 $ 720,394 814,427 17,826 1,552,647 June 30, 2021 December 31, 2020 (Restated) June 30, 2020 (Restated) $ 338,103 297,969 277,746 (500) (174) (209) $ 337,603 297,795 277,537 $ 17,420 34,136 9,521	Total
		738,220 571,197 243,230
		1,552,647

(ii) Contract balances

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

The amounts of revenue recognized for the three months ended and six months ended June 30, 2021 and 2020 that were included in the contract liability balance at the beginning of the period were $34,136 and $19,327, respectively.

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

(Continued)

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

(r) Financial cost-Interest expense

The financial cost interest expenses were as follows:

For the three months ended June 30, 2021 2020 (Restated) $ 12,411 26,220 10,014 11,792 428 492 $ 22,853 38,504	For the six months ended June 30,	For the six months ended June 30,
2021 $ 12,411 10,014 428 $ 22,853	2021 24,052 28,118 800 52,970	2020 (Restated)
		59,314 25,238 1,022
		85,574

(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 three months and six months ended June 30, 2021 and 2020, the Company recognized its employee compensation of $8,221, $1,352, $10,472 and $1,421, respectively, and its directors’and supervisors’ remuneration of $8,221, $1,352, $10,472 and $1,421, 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, 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. There was no difference between the aforementioned distribution approved in the board of directors and the estimation in the 2020 and 2019 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 June 30, 2021 and 2020, the maximum amount exposed to credit risk amounted to $6,365,191 and $4,516,697, respectively.

(Continued)

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 46% and 54% of the total net sales for the six months ended June 30, 2021 and 2020, 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:

June 30, 2021 Non-derivative financial liabilities: Short-term borrowings Secured bank loans Notes and accounts payable Lease liabilities Dividends payable Bonds payable Accrued expenses and other payables (recorded as other payables) December 31, 2020 (Restated) 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 (660,000) (2,849,617) (190,389) (165,087) (315,975) (2,900,000) (134,447) (7,215,515) (195,000) (3,180,433) (166,113) (170,511) (5,200,000) (140,110) (9,052,167)	Within 1 year		1~ 2 years Over 2 years - - (964,846) (1,340,149) - - (43,657) (75,424) - - - (2,500,000) - - (1,008,503) (3,915,573) - - (754,054) (1,813,841) - - (43,873) (80,632) (400,000) (2,500,000) - - (1,197,927) (4,394,473)
	$ 659,990 2,849,617 190,389 161,798 315,975 2,900,000 134,447 $ 7,212,216 $ 194,940 3,180,433 166,113 167,019 5,200,000 140,110 $ 9,048,615

(Continued)

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

June 30, 2020 (Restated) Non-derivative financial liabilities: Short-term borrowings Secured bank loans Notes and accounts payable Lease liabilities Dividends payable Bonds payable Accrued expenses and other payables (recorded as other payables)	Carrying Amount		Contractual cash flows (2,081,000) (3,676,548) (158,538) (170,079) (157,988) (2,700,000) (100,155) (9,044,308)	Within 1 year		1~ 2 years Over 2 years - - (579,223) (2,451,435) - - (42,999) (84,264) - - (400,000) - - - (1,022,222) (2,535,699)
	$ 2,080,508 3,676,548 158,538 166,105 157,988 2,700,000 100,155 $ 9,039,842

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

(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 six months ended June 30, 2021 and 2020 as follows:

Increased 0.25% Decreased 0.25% (v) Fair value information	For the six months ended June 30, 2021 2020 (Restated) $ (2,332) (6,361) 2,332 6,361

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.

(Continued)

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

	June 30, 2021	June 30, 2021	June 30, 2021
Book value		Fair Value
	Level 1 564,944 128,596 - 1,466,960 - - - - - - - - - - - - - -	Level 2	Level 3 Total - 564,944 24,961 153,557 - 681,670 - 1,466,960 - - - - - - - - - - - - - - - - - - - - - - - - - 2,900,000 - -
$ 564,944 153,557 681,670 1,400,171 1,466,960 2,831,034 37,534 25,295 337,603 21,923 15,697 6,767 222,207 3,498,060 $ 6,365,191 $ 659,990 2,849,617 190,389 161,798 2,900,000 134,447 $ 6,896,241		- - 681,670 - - - - - - - - - - - - - 2,900,000 -

(Continued)

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

	December 31, 2020 (Restated)	December 31, 2020 (Restated)	December 31, 2020 (Restated)
Book value		Fair Value
	Level 1	Level 2	Level 3 Total - 634,690 24,961 89,816 - 119,098 - 1,188,476 - - - - - - - - - - - - - - - - - - - - - - - 5,200,000 - -
	634,690 64,855 - 1,188,476 - - - - - - - - - - - - -	- - 119,098 - - - - - - - - - - - - 5,200,000 -

(Continued)

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

	June 30, 2020 (Restated)	June 30, 2020 (Restated)	June 30, 2020 (Restated)
Book value		Fair Value
	Level 1 274,973 51,474 - 352,977 - - - - - - - - - - - - - - -	Level 2	Level 3 Total - 274,973 25,545 77,019 - 27,400 - 352,977 - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,700,000 - - (Continued)
$ 274,973 77,019 27,400 379,392 352,977 3,192,405 20,859 8,310 277,537 38,435 6,401 6,568 233,813 3,784,328 $ 4,516,697 $ 2,080,508 3,676,548 158,538 166,105 157,988 2,700,000 100,155 $ 9,039,842		- - 27,400 - - - - - - - - - - - - - - 2,700,000 -

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

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.

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 six months ended June 30, 2021 and 2020.

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,	2021	(Restated)
(equal to balance	on	June	30, 2021)	$	24,961
Balance on January	1,	2020	(Restated)
(equal to balance	on	June	30, 2020)	$	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)

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

(u) Financial risk management

The Group’ s objectives and policies for managing the financial risk are consistent with those disclosed in the note (6)(u) of the consolidated financial statements for the year ended December 31, 2020.

(v) Capital management

The Group’ s objectives, policies and processes of capital management are the same as those disclosed in the consolidated financial statements for the year ended December 31, 2020. There were no significant changes of quantitative data of capital management compared with the consolidated financial statements for the year ended December 31, 2020. Please refer to note (6)(v) of the consolidated financial statements for the year ended December 31, 2020.

(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 six months ended June 30, 2021 and 2020.

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, 2021 (Restated) $ 194,940 3,180,433 5,200,000 167,019 668 $ 8,743,060 January 1, 2020 (Restated) $ 1,529,883 4,046,736 3,100,000 222,202 961 $ 8,899,782	Cash flows 465,050 (306,967) (2,300,000) (29,585) 756 (2,170,746) Cash flows 550,625 (326,978) (400,000) (32,739) (3) (209,095)	Others		Non-cash changes Foreign exchange movement - (23,849) - - - (23,849) Non-cash changes Foreign exchange movement - (43,210) - - - (43,210)	June 30, 2021
			- - - 24,364 -			659,990 2,849,617 2,900,000 161,798 1,424
			24,364			6,572,829
			Others			June 30, 2020 (Restated)
						2,080,508 3,676,548 2,700,000 166,105 958
						8,624,119

(Continued)

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:

The entities with significant influence over the Group			Reve	nue	Six months ended June 30, 2020 (Restated) 30,267	Accounts Receivable- related-parties	Accounts Receivable- related-parties
		Three months ended June 30, 2021	Three months ended June 30, 2020 (Restated) 15,640	Six months ended June 30, 2021 32,929		June 30, 2021 10,323	December 31, 2020 (Restated) June 30, 2020 (Restated) 11,864 14,577
		$ 16,670

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. Accounts receivable from related parties were uncollateralized, and no expected credit loss were required after the assessment by the management.

(Continued)

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

(iii) Operating expense

	Operating	expense
Three months ended June 30, 2021 $ 956 1,944 $ 2,900	Three months ended June 30, 2020 (Restated) 2,320 2,231 4,551	Six months ended June 30, 2021 1,467 3,919 5,386	Six months ended June 30, 2020 (Restated)
			3,867 4,545
			8,412

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.

(iv) In order to focus on its core technologies and strengthen the competitiveness of the Company, on March 29, 2021, the Board of Directors approved to acquire 40% equity which totaling 4,000 thousand shares of AGM from the Group’ s parent Company at New Taiwan dollars $8.22 per share, totaling $32,880. The transaction price was based on the latest financial statements audited by CPA. The transaction was completed on April 1, 2021, and the amount has been fully paid. The transaction was reorganized as a business reorganization under common control.
(c) Key management personnel compensation

Key management personnel compensation comprised:

For the three months ended June 30, 2021 2020 (Restated) $ 20,415 15,052 237 257 $ 20,652 15,309	For the six months ended June 30,	For the six months ended June 30,
2021 $ 20,415 237 $ 20,652	2021 35,075 475 35,550	2020 (Restated)
		28,401 515
		28,916

(Continued)

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

(8) Pledged assets

The carrying values of pledged assets were as follows:

Assets	Subject June 30, 2021 Commercial paper payable – and short- term loans and credit lines $ - Commercial paper payable – and short- term loans and credit lines 768,460 Short-term borrowings and credit lines of loans 113,900 Short-term borrowings and credit lines 899,336 Long-term borrowings and credit lines 7,728,724 Long-term borrowings 210,333 Guarantee for construction payment, warehouse deposits, short- term borrowings and import duty 18,641 $ 9,739,394	December 31, 2020 (Restated) - 352,660 56,355 899,336 8,004,473 217,955 18,624 9,549,403	June 30, 2020 (Restated)
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)			290,656 128,340 - 899,336 8,715,344 216,220 24,162
			10,274,058

(9) Commitments and contingencies

(a) The Group had issued guarantee promissory notes amounting to $5,647,160, 5,647,160 and 3,130,960 as of June 30, 2021, December 31 and June 30, 2020, respectively, as guarantee for bonds payable.
(b) As of June 30, 2021, the Group still had several long-term leases of its ships with customers in effect. The ending periods of the contracts are from August 2021 to August 2022.

(Continued)

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

(c) The Group signed a cape-type bulk carrier' construction contract with a shipbuilding company in order to expand its business scale. The related information was as follows:

Buyer Signed Day Total Price Delivery Date CCMP May 20, 2021$1,629,810 (USD58,500 thousand) September, 2023 (note 1) CVTR May 20, 2021$1,629,810 (USD58,500 thousand) June, 2023 (note 1)	Price Paid - -

Note 1: Estimated delivery date for shipbuilding contract.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(12) Other

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

By function By item	For the three months ended June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2020 (Restated)	For the three months ended June 30, 2020 (Restated)	For the three months ended June 30, 2020 (Restated)
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	106,851 2,876 1,311 2,509 216,539 -	72,131 3,840 2,429 2,540 4,090 906	178,982 6,716 3,740 5,049 220,629 906	67,326 2,580 1,401 6,279 231,693 -	56,402 4,252 2,269 2,234 3,131 735	123,728 6,832 3,670 8,513 234,824 735

By function By item	For the six months ended June 30, 2021			For the six months ended June 30, 2020 (Restated)
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation (Note) Amortization	209,680 6,005 2,771 4,284 432,909 -	128,896 8,017 4,704 4,913 7,915 1,749	338,576 14,022 7,475 9,197 440,824 1,749	165,034 5,388 2,811 12,602 465,785 -	109,772 8,866 4,574 4,563 6,204 1,577	274,806 14,254 7,385 17,165 471,989 1,577

Note: excluding the deduction of rental income of $71 for the six months ended June 30, 2020.

(b) Seasonality of operation

The Group's operations were not affected by seasonality or cyclicality factors.

(Continued)

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

(c) The Group had 30% ownership of AGM for long-term equity investments. For coordinating the Group's business structure. The Group had acquired 40% ownership of AG MOTORS CORP(AGM) from it’s parent company, AGCMT GROUP LTD. with the cash considerations of $32,800 on April 1, 2021. The percentage of ownership of AGM held by the Group had increased to 70%, thereby the Group had obtained the control of AGM. The transaction was accounted for as a business reorganization under common control in compliance with the Accounting Research and Development Foundation's IFRS Question and Answers. When presenting comparative consolidated financial statements, the Group presented them as if AGM had always been combined and the consolidated financial statements were restated retrospectively. In addition, the previous comparative consolidated financial statements should be restated. After restating the consolidated balance sheets of December 31, 2020 and June 30, 2020, and the consolidated statements of comprehensive income for the three months and six months ended June 30, 2020, the effects were as follows:

Consolidated Balance Sheets

Accounts Assets Current assets Non-current assets Total assets Total liabilities and equity Current liabilities Non-Current liabilities Total liabilities Equity Common stock Capital surplus Retained earnings Other equity interest Equity attributable to owners of parent Equity attributable to predecessors' interests under common control Non-controlling interests Total equity Total liabilities and equity	December 31, 2020	December 31, 2020	After restatement 5,151,763 14,391,074 19,542,837 3,506,059 6,229,282 9,735,341 1,974,846 53,411 8,605,669 (883,992) 9,749,934 32,893 24,669 9,807,496 19,542,837
	Before restatement $ 5,078,230 14,405,607 $ 19,483,837 $ 3,504,621 6,229,282 9,733,903 1,974,846 53,411 8,605,669 (883,992) 9,749,934 - - 9,749,934 $ 19,483,837	Adjustment 73,533 (14,533) 59,000 1,438 - 1,438 - - - - - 32,893 24,669 57,562 59,000

(Continued)

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

Accounts Assets Current assets Non-current assets Total assets Total liabilities and equity Current liabilities Non-Current liabilities Total liabilities Equity Common stock Capital surplus Retained earnings Other equity interest Equity attributable to owners of parent Equity attributable to predecessors' interests under common control Non-controlling interests Total equity Total liabilities and equity		June 30, 2020	After restatement 4,107,883 15,438,517 19,546,400 5,508,315 4,204,745 9,713,060 1,974,846 53,411 8,418,893 (676,183) 9,770,967 35,642 26,731 9,833,340 19,546,400
	Before restatement $ 4,026,710 15,456,618 $ 19,483,328 $ 5,507,616 4,204,745 9,712,361 1,974,846 53,411 8,418,893 (676,183) 9,770,967 - - 9,770,967 $ 19,483,328	Adjustment 81,173 (18,101) 63,072 699 - 699 - - - - - 35,642 26,731 62,373 63,072

Consolidated statements of Comprehensive Income

Accounts Operating Revenues Operating costs Operating expenses Non-operating income and expenses Income tax expenses Profit Comprehensive income	For the six months ended June 30, 2020 Before restatement Adjustment After restatement $ 1,552,550 97 1,552,647 1,275,400 308 1,275,708 184,812 5,511 190,323 55,904 1,882 57,786 13,157 - 13,157 135,085 (3,840) 131,245 (5,408) (3,840) (9,248)
	Before restatement $ 1,552,550 1,275,400 184,812 55,904 13,157 135,085 (5,408)

(Continued)

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

Accounts Operating Revenues Operating costs Operating expenses Non-operating income and expenses Income tax expenses Profit Comprehensive income	For the three months ended June 30, 2020 Before restatement Adjustment After restatement $ 740,139 96 740,235 609,303 238 609,541 92,212 3,358 95,570 98,910 1,105 100,015 5,141 - 5,141 132,393 (2,395) 129,998 (7,442) (2,395) (9,837)

(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 six months ended June 30, 2021:

(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 1 1 2 2	CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK CCMP CVTR ATI ATI	CPN CHN CPC CPG CHM CMTI CTU CTD CMT HK CMT HK APT PTL	Other receivable due from related parties 〃〃〃〃〃〃〃〃〃〃〃	Y Y Y Y Y Y Y Y Y Y Y Y	95,281 139,300 222,800 362,180 310,918 654,710 656,103 697,893 174,125 174,125 38,000 14,000	95,281 139,300 222,800 306,460 310,918 654,710 656,103 697,893 - - 31,000 13,000	95,281 139,300 222,800 306,460 310,918 334,320 656,103 697,893 - - 31,000 13,000	- - - - - - - 1.20% 1.20%	2 2 2 2 2 2 2 2 2 2 1 1	- - - - - - - - - - 118,050 54,853	Operating 〃〃〃〃〃〃〃〃〃〃〃	- - - - - - - - - - - -		- - - - - - - - - - - -	8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 176,629 176,629 118,050 54,853	8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 8,817,392 176,629 176,629 241,809 249,748	Transactions in the left column had been eliminated during the preparation of 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.

(Continued)

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

(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)
No.	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise (note1, note2)	Highest balance for guarantees and endorsements during the period (note 3)	Balance of guarantees and endorsements as of reporting date (note 3)	Actual usage amount during the period (note 3)	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 0 1 1 1 1	The COMPANY 〃〃〃〃〃 CMT HK 〃〃	CTU CTD CFR CPN CCMP CVTR CEP CHM CHN THE COMPANY	Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Subsidiary Subsidiary Subsidiary Parent company	16,731,093 16,731,093 16,731,093 16,731,093 16,731,093 16,731,093 13,266,088 13,266,088 13,266,088 13,266,088	250,740 250,740 1,238,377 1,253,700 1,629,810 1,629,810 890,963 908,793 692,042 3,622	250,740 250,740 1,238,377 1,253,700 1,629,810 1,629,810 890,963 908,793 692,042 3,622	62,685 125,370 508,386 466,275 1,629,810 1,629,810 628,363 427,230 631,308 3,622	- - - - - - - - - -	% 2.25 % 2.25 % 11.10 % 11.24 % 14.61 % 14.61 % 7.99 % 8.15 % 6.20 % 0.04	16,731,093 16,731,093 16,731,093 16,731,093 16,731,093 16,731,093 13,226,088 13,226,088 13,226,088 13,226,088	Y 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 New Taiwan Dollars)	of New Taiwan Dollars)
Name of holder	Category and name of security	Relationship with company	Account title		Ending	balance		Note
				Shares/Units (thousands)	Carrying value	percentage of ownership (%)	Fair value / net value
THE COMPANY 〃 HIL 〃〃 MHI 〃	Yang Ming Marine Transport Corporation Asia Pacific Emerging Industry Venture Capital Co., Ltd. CHINA CONTAINER TERMINAL CORP. SEA & LAND INTERATED CORP. DIMERCO EXPRESS DIMERCO EXPRESS CHINA CONTAINER TERMINAL CORP.	- - - - - - -	Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss 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 Ccurrent financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income	4,798 1,950 23,788 3,187 1,554 2,662 5,610	681,670 24,961 1,187,021 128,596 208,236 356,708 279,939	0.14 % 2.78 % 16.03 % 4.07 % 1.23 % 2.11 % 3.78 %	681,670 24,961 1,187,021 128,596 208,236 356,708 279,939

(Continued)

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

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 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)	(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	Category and name of security	Account name	Name of counter- party	Relationship with the company	Beginning Balance		Purchases		Sales				Ending Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
THE COMPANY	Taiwan Navigation Co., Ltd.	Non-current financial assets at fair value through other comprehensive income	-	-	24,420	515,262	-	-	24,420	20.77	515,262	(8,123)	-	-

(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	Transacti differen	ons with terms t 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	ATI THE COMPANY	Subsidiary F Subsidiary F r	reight cost reight evenue	226,343 (226,343)	% 97 % (37)	Depending on the demand for funding of subsidiaries 〃	- -		(83,297) 83,297	(100)% 33%	Note 〃

Note1: Transactions in the left column had been written off during the preparation of 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 CMTI	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Fellow subsidiary	697,893 656,103 310,918 222,880 139,300 306,460 334,320	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

(Continued)

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

(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	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
1 6 6 6 6 6 6	ATI CMT HK CMT HK CMT HK CMT HK CMT HK CMT HK	THE COMPANY CTD CTU CHM CPC CHN CPG	2 3 3 3 3 3 3	Operating revenues Other receivables 〃〃〃〃〃	226,343 697,893 656,103 310,918 222,880 139,300 306,460	Price depends on the market, and the receivables depend on funding demand in the credit period - - - - - -	14.15% 3.66% 3.44% 1.63% 1.17% 0.73% 1.61%

Note 1: The companies are coded as follows:

0 represents the parent company.
The subsidiaries are coded sequentially beginning from 1 in the order of companies’ names.

Note 2: The relationships with transactions are as follows:

Transactions from the parent company to its subsidiaries.
Transactions from the subsidiaries to the parent company.
Transaction between subsidiaries.

(b) Information on investees:

The following is the information on investees for the year ended June 30, 2021:

(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	Balanc	e as of June 30,	2021	Net I	ncome
				June 30, 2021	December 31, 2020	Shares (thousands)	Percentage of Ownership	Carrying Value	(Losses) of the Investee	Share of profits/losses of investee	Note
The Company 〃〃〃〃〃〃〃〃〃〃 CMTS 〃	CMTS CMT HK CMTI CMTL AGMI HIL MHI ATI CMTTSL TGEM AGM CFR CEP	Singapore Hong Kong Singapore Taiwan 〃〃〃〃〃〃〃 Singapore 〃	Investment holding of ship-owning companies Investment holding of ship-owning companies Investment holding of ship-owning companies Warehouse management Investment 〃〃 Container trucking Travel Bulk-carrier transportation Automobile and its parts manufacturing Bulk-carrier transportation 〃	4,282 34,356 28,023 743,058 41,000 400,000 271,300 500,000 20,000 601,200 62,880 640,780 643,566	4,282 34,356 - 734,058 1,000 685,000 271,300 500,000 20,000 601,200 30,000 640,780 643,566	217 12,000 1,000 24,550 4,100 40,000 27,130 50,000 2,000 61,623 7,000 29,900 23,100	% 0.34 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 12 % 70 % 100 % 100	4,796 8,817,392 26,767 1,094,540 49,623 1,579,769 741,406 604,521 3,842 604,257 50,135 681,789 646,936	(17,730) 31,854 (1,105) 25,236 8,654 206,952 244,146 17,426 (405) 98,168 (10,612) (16,363) 2,964	(60) 31,854 (1,105) 25,236 8,654 206,952 244,146 17,426 (405) 11,781 (5,016) Has been recognized as investment incomes(losses) by CMTS 〃	Note1、Note4 〃〃〃〃〃〃〃〃 Note2 Note1、Note4 Note1、 Note3、Note4 〃

(Continued)

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

Name of investor	Name of investee	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of June 30, 2021	Balance as of June 30, 2021	Balance as of June 30, 2021	Net Income	Net Income
				June 30, 2021	December 31, 2020	Shares (thousands)	Percentage of Ownership	Carrying Value	(Losses) of the Investee	Share of profits/losses of investee	Note
CMT HK 〃〃〃〃〃〃〃〃〃〃〃〃 CMTI ATI 〃〃〃〃	CPS CPG CPC CHT CPN CPD CTD CTU CHM CHN CHI CIM CMTs CCMP CVTR CST HYT MHT APT PTL	Hong Kong 〃〃〃〃〃〃 Hong Kong 〃〃〃〃 Singapore Singapore 〃 Taiwan 〃〃〃〃	Bulk-carrier transportation 〃〃 Bulk-chartering services Bulk-carrier transportation 〃〃 Bulk-carrier transportation 〃〃 Investment management 〃 Investment holding of ship-owning companies Bulk-carrier transportation 〃 Container trucking 〃〃〃〃	55,720 167,160 153,230 279 668,640 1,170,120 362,180 362,180 417,900 417,900 279 27,860 1,320,564 176,911 176,911 86,642 28,932 30,568 30,719 30,000	55,720 167,160 153,230 279 668,640 1,170,120 362,180 362,180 417,900 417,900 279 27,860 1,320,564 - - 86,642 28,932 30,568 30,719 30,000	2,000 6,000 5,500 10 240 420 13,000 13,000 150 150 0.1 10 62,918 6,350 6,350 8,200 3,000 3,000 3,000 3,000	% 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 99.66 % 100 % 100 % 100 % 100 % 100 % 100 % 100	55,823 168,537 188,536 5,200 743,400 1,142,238 347,950 429,165 438,953 441,946 (559) 28,510 1,405,792 176,629 176,629 93,612 32,666 49,480 42,726 26,240	(112) 923 11,368 (76) (3,907) (2,135) (5,258) 15,443 20,210 27,008 (54) 5 (17,730) (285) (285) 50 827 5,135 4,280 115	Has been recognized as investment incomes(losses) by CMT HK 〃〃〃〃〃〃 Has been recognized as investment incomes(losses) by CMT HK 〃〃〃〃〃 Has been recognized as investment incomes (losses) by CMTI 〃 Has been recognized as investment incomes (losses) by ATI - - - -	Note1、 Note3、Note4 〃〃〃〃〃〃 Note1、 Note3、Note4 〃〃〃〃〃〃〃 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.

(c) Information on investment in mainland China: None
(d) Major shareholders:

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.

(Continued)

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

(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.

The Group’s segment information was as below:

	Three months ended June 30, 2021	Three months ended June 30, 2021	Three months ended June 30, 2021	Total
Inland trucking and terminal & logistics department $ 432,441 - $ 432,441 $ 38,220	Shipping department Others Adjustments and eliminations 373,549 931 - - - - 373,549 931 - 8,590 (4,067) (39,561) $ Three months ended June 30, 2020 (Restated)
				806,921 -
				806,921
				3,182
				19,064,698
				Total
Inland trucking and terminal & logistics department $ 344,796 - $ 344,796 $ 4,833	Shipping department Others Adjustments and eliminations 385,615 9,824 - - - - 385,615 9,824 - 33,033 (2,742) - $ Six months ended June 30, 2021
				740,235 -
				740,235
				35,124
				19,546,400

Inland trucking and terminal & logistics department	Shipping department 751,013 - 751,013 46,698	Others 9,364 - 9,364 (8,482)	Adjustments and eliminations Total - 1,600,228 - - - 1,600,228 (69,778) 34,810 $ 19,064,698
$ 839,851 - $ 839,851 $ 66,372

(Continued)

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

Six months ended June 30, 2020	Six months ended June 30, 2020	(Restated)
Shipping department 814,427 - 814,427 84,852	Others 17,826 - 17,826 (3,915)	Adjustments and eliminations Total - 1,552,647 - - - 1,552,647 - 86,616 $ 19,546,400	Total
			1,552,647 -
			1,552,647
			86,616

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CMT — Interim / Quarterly Report 2021

52166_rns_2021-12-08_0ec754ef-1e8c-4d5b-b8c9-df882a71bdcc.pdf

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2021 and 2020

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

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS

CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards CHINESE MARITIME TRANSPORT LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2021 and 2020

(1) Company history

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

(3) New standards, amendments and interpretations adopted:

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

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

(4) Summary of significant accounting policies

(a) Statement of compliance

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

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

(c) Employee benefits

(d) Income taxes

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

(e) Business combination

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

(6) Explanation of significant accounts

(a) Cash and cash equivalents

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

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

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

(d) Notes and accounts receivable

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

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

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

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

(vi) Pledges

(f) Property, plant and equipment

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

(iv) Operating lease

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

(g) Right-of-use assets

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

(h) Investments property

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

(i) Other financial assets

(j) Loans

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

(ii) Long-term loans

(iii) Bonds Payable

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

(l) Operating lease

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

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

(n) Income taxes

(i) Tax expenses

(o) Capital and other equities

(i) Retained Earning

1) Legal reserve

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

2) Special reserve

3) Earnings distribution

CMT Interim / Quarterly Report 2021