SNC — Audit Report / Information 2022

Nov 8, 2022

SINCERE NAVIGATION CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2022 AND 2021

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Sincere Navigation Corporation

Opinion

We have audited the accompanying parent company only balance sheets of Sincere Navigation Corporation (the “Company”) as at December 31, 2022 and 2021, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Company’s 2022 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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資誠聯合會計師事務所 PricewaterhouseCoopers, Taiwan 110208 臺北市信義區基隆路一段 333 號 27 樓 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 110208, Taiwan T: +886 (2) 2729 6666, F:+ 886 (2) 2729 6686, www.pwc.tw

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Key audit matters for the Company’s 2022 parent company only financial statements are as follows:

Reasonableness of investments accounted for using equity method — subsidiaries’ V/C (voyage charterer) revenue recognition timing

Description

As of December 31, 2022, the Company’s subsidiaries recorded as investments accounted for using equity method amounted to NT$18,359,928 thousand, constituting 96% of the Company’s total assets, while the share of profit of the investments constituted 210% of the Company’s profit before tax for the year then ended. Given that the investments significantly affect the Company’s financial performance, we considered the cut-off of V/C revenue recognition as a key audit matter.

For accounting policy on revenue recognition and related details of revenue, refer to Notes 4(22) and 6(14) in the financial statements.

Subsidiaries’ V/C revenue is recognised as revenue based on the percentage of completion of service rendered. Many factors are involved in the progress of revenue recognition, such as the length of the negotiated period of contracts, conditions of vessels and equipment, the changes of port of discharge and loading and so on.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Obtained an understanding of the procedures of management in recognising V/C revenue, and confirmed the evidence of revenue recognition and the appropriateness of approval procedures.

2. Checked the contracts for V/C around the period of the balance sheet date, and based on our understanding of the client’s operating conditions, assessed the reasonableness of voyage planning developed by management.

3. Obtained the location information reported by the crew of each vessel on the balance sheet date, and compared it with management’s voyage planning to verify whether revenue has been recognised properly in accordance with the completion of voyage.

4. Obtained the related settlement vouchers in subsequent period to evaluate the reasonableness of revenue recognition.

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Impairment of vessels and equipment

Description

For accounting policy, accounting estimates and assumptions applied on impairment of property, plant and equipment and related impairment explanation, refer to Notes 4(12) and 5(2) of parent company only financial statements and Notes 4(14), 5(2) and 6(5) of consolidated financial statements.

The Group engages in bulk shipping service. Vessels are the Company’s significant operating assets. Bulk shipping service is closely related with the demand for bulk commodities, and is significantly affected by global economy. Therefore, the impairment of vessels is the Company’s material risk. The valuation of impairment is evaluated by the management by comparing the book value to the recoverable amount based on the analysis of industry dynamics and the Company’s operating plan. As at December 31, 2022, the Group’s vessel equipment amounted to NT$14,462,784 thousand, constituting 67% of total assets.

The main assumptions adopted in measuring the recoverable amount are subject to management’s judgement, which include the estimation of residual value, useful life, future freight rate and the rate used to discount projected future cash flows. The results of accounting estimates have a significant effect on evaluating the recoverable amount. Therefore, we considered the impairment of vessels and equipment as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Obtained the information that management used to assess whether there was an indication that the assets were impaired. Inspected the accuracy of the information which was obtained from internal and external sources, and assessed the reasonableness of the assessment result.

2. Obtained the valuation information used by management in determining the recoverable amount. Discussed the operating plan with management about the income and expenses that may occur in the future and reviewed performance conditions of previous operating plan to assess management’s performance intention and ability. Obtained subsequent information within a certain period and compared with the original plan.

3. Compared the discount rate used in the valuation model with the rate of return on assets of similar assets in the market, and checked the assumptions used in calculating the weighted average cost of capital (WACC) with actual proportion of equity capital, industrial risk coefficient and market risk

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premium.

1. Checked the parameters and the formula used in the valuation model.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ responsibilities for the audit of the parent company only financial statements

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

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

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from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

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

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

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

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

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

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

Lin, Yi-Fan For and on Behalf of PricewaterhouseCoopers, Taiwan March 9, 2023

[Liao, Fu-Ming ]

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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SINCERE NAVIGATION CORPORATION PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Assets	Notes 6(1) 6(11) 6(4) and 7 7 7 6(2) 6(3)(5) and 8 6(18) 6(4), 7 and 8	December 31, 2022 AMOUNT % $ 123,883 1 - - 10,212 - 29,969 - 425 - 2,152 - 1,238 - 1,349 - 169,228 1 18,359,928 96 102,484 - - - 146 - 7,840 - 512,530 3 18,982,928 99 $ 19,152,156 100	December 31, 2021	December 31, 2021
		AMOUNT $ 123,883 - 10,212 29,969 425 2,152 1,238 1,349 169,228 18,359,928 102,484 - 146 7,840 512,530 18,982,928 $ 19,152,156	AMOUNT $ 217,931 133,402 63,021 - 25,201 3,675 - 16,869 460,099 16,224,007 659,873 508 249 5,028 6,922 16,896,587 $ 17,356,686	%
Current assets 1100 Cash and cash equivalents 1140 Current contract assets 1170 Accounts receivable, net 1199 Finance lease receivable due from related parties, net 1200 Other receivables 1210 Other receivables - related parties 1220 Current income tax assets 1410 Prepayments 11XX Total current assets Non-current assets 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				1 1 1 - - - - -
				3
				93 4 - - - -
				97
				100

(Continued)

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SINCERE NAVIGATION CORPORATION PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Liabilities and Equity

December 31, 2022 December 31, 2021 Notes AMOUNT % AMOUNT % 6(6) and 8 $ 1,595,000 8 $ 850,000 5 6(11) - - 49,455 - 19,600 - 29,863 - 7 10,622 - 190,070 1 - - 92,040 1 - - 470 - 1,625,222 8 1,211,898 7 6(18) - - 35,658 - 7 1,689,050 9 1,660,800 10 6(7) 12,413 - 23,598 - 1,701,463 9 1,720,056 10 3,326,685 17 2,931,954 17 6(8) 5,853,533 31 5,853,533 34 6(9) 243,785 1 243,203 1 6(10) 3,256,327 17 3,185,897 18 2,684,372 14 2,216,073 13 4,685,867 25 5,610,398 32 ( 898,413) ( 5) ( 2,684,372) ( 15 ) 15,825,471 83 14,424,732 83 9 11 $ 19,152,156 100 $ 17,356,686 100

Current liabilities 2100 Short-term borrowings 2130 Current contract liabilities 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Current lease liabilities 21XX Total current liabilities Non-current liabilities 2570 Deferred income tax liabilities 2620 Long-term notes and accounts payable - related parties 2640 Net defined benefit liability, non- current 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3XXX Total equity Significant contingent liabilities and unrecognised contractual commitments Significant events after balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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SINCERE NAVIGATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2022 AND 2021

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE)

Items

Year ended December 31 2022 2021 Notes AMOUNT % AMOUNT % 6(11) and 7 $ 127,635 100 $ 261,512 100 6(16)(17) and 7( 44,614) ( 35) ( 123,731) ( 47) 83,021 65 137,781 53 6(16)(17) ( 96,005) ( 75) ( 94,611) ( 37) - - ( 477) - ( 96,005) ( 75) ( 95,088) ( 37) ( 12,984) ( 10) 42,693 16 6(12) 1,768 1 108 - 6(13) and 7 10,262 8 5,453 2 6(14) ( 171,480) ( 134) 25,868 10 6(15) ( 15,785) ( 12) ( 10,167) ( 4) 6(2) 346,964 272 651,788 250 171,729 135 673,050 258 158,745 125 715,743 274 6(18) 38,413 30 ( 11,554) ( 5) $ 197,158 155 $ 704,189 269 6(7) $ 2,991 2 $ 136 - 6(18) ( 598) - ( 27) - 1,785,959 1399 ( 468,299) ( 179) $ 1,985,510 1556 $ 235,999 90 6(19) $ 0.34 $ 1.20 6(19) $ 0.34 $ 1.20

4000 Operating revenue 5000 Operating costs 5900 Net operating profit Operating expenses 6200 General and administrative expenses 6450 Impairment loss determined in accordance with IFRS 9 6000 Total operating expenses 6900 Operating (loss) profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of associates and joint ventures accounted for using equity method, net 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax benefit (expense) 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Actuarial gain on defined benefit plan 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8500 Total comprehensive income for the year Earnings per share 9750 Basic earnings per share (in dollars) 9850 Diluted earnings per share (in dollars)

The accompanying notes are an integral part of these parent company only financial statements.

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SINCERE NAVIGATION CORPORATION PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2022 AND 2021

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

For the year ended December 31, 2021 Balance at January 1, 2021 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriations of 2020 earnings: Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividends Balance at December 31, 2021 For the year ended December 31, 2022 Balance at January 1, 2022 Profit for the year Other comprehensive income Total comprehensive income Appropriations of 2021 earnings: Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividends Balance at December 31, 2022	Notes		Share capital - common stock				Capital Reserves						Retained Earnings			Financial statements translation differences of foreign operations		Total equity
					Treasury stock transactions		Difference between consideration and carrying amount of subsidiaries acquired		Capital surplus, others		Legal reserve		Special reserve		Unappropriated retained earnings
	6(10) 6(10)		$ 5,853,533 - - - - - - - $ 5,853,533 $ 5,853,533 - - - - - - - $ 5,853,533		$ 39,243 - - - - - - - $ 39,243 $ 39,243 - - - - - - - $ 39,243		$ 199,339 - - - - - - - $ 199,339 $ 199,339 - - - - - - - $ 199,339		$ 4,029 - - - - - - 592 $ 4,621 $ 4,621 - - - - - - 582 $ 5,203		$ 3,171,779 - - - 14,118 - - - $ 3,185,897 $ 3,185,897 - - - 70,430 - - - $ 3,256,327		$ 1,349,931 - - - - 866,142 - - $ 2,216,073 $ 2,216,073 - - - - 468,299 - - $ 2,684,372	$ 6,079,037 704,189 109 704,298 ( 14,118 ) ( 866,142 ) ( 292,677 ) - $ 5,610,398 $ 5,610,398 197,158 2,393 199,551 ( 70,430 ) ( 468,299 ) ( 585,353 ) - $ 4,685,867		($ 2,216,073 ) - ( 468,299 ) ( 468,299 ) - - - - ($ 2,684,372 ) ($ 2,684,372 ) - 1,785,959 1,785,959 - - - - ($ 898,413 )	$ 14,480,818 704,189 ( 468,190 ) 235,999 - - ( 292,677 ) 592 $ 14,424,732 $ 14,424,732 197,158 1,788,352 1,985,510 - - ( 585,353 ) 582 $ 15,825,471

The accompanying notes are an integral part of these parent company only financial statements.

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SINCERE NAVIGATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2022 AND 2021

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortisation Impairment loss determined in accordance with IFRS 9 Interest income Interest income of finance lease Interest expense Investment income accounted for using the equity method Impairment loss recognised in profit or loss, property, plant and equipment Gain on disposal of property, plant and equipment Changes in operating assets and liabilities Changes in operating assets Current contract assets Accounts receivable Other receivables Other receivables - related partiy Prepayments Changes in operating liabilities Current contract liabilities Other payables Other payables - related party Accrued pension liabilities Cash (outflow) inflow generated from operations Interest received Income tax paid Refund of income tax Dividends received Net cash flows (used in) from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in investments Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans Finance lease received Interest paid Repayment of principal of lease liabilities Cash dividends paid Overdue unclaimed cash dividends (Decrease) increase in loan from related party Net cash flows used in financing activities Effect of changes in foreign exchange rate Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

For theyears ended December 31, Notes 2022 2021 $ 158,745 $ 715,743 6(16) 34,486 58,424 6(16) 103 59 12(2) - 477 6(12) ( 968 ) ( 108 ) 6(4)(12) ( 800 ) - 6(15) 15,785 10,153 6(2) ( 346,964 ) ( 651,788 ) 6(3)(14) - 24,782 6(14) - ( 6,997 ) 133,402 ( 107,331 ) 52,809 ( 62,295 ) 25,111 ( 12,170 ) 1,523 ( 899 ) 15,520 ( 13,491 ) ( 49,455 ) 48,378 ( 11,018 ) 2,801 ( 179,448 ) 162,617 ( 8,194 ) ( 9,119 ) ( 159,363 ) 159,236 633 108 ( 93,933 ) ( 827 ) - 106 7 - 445,200 ( 252,663 ) 603,823 6(3) ( 17,856 ) ( 578,990 ) - 327,722 - ( 206 ) 6(2) ( 2,998 ) - ( 20,854 ) ( 251,474 ) 6(20) 745,000 10,000 3,336 - ( 15,030 ) ( 10,313 ) ( 473 ) ( 362 ) 6(10) ( 585,353 ) ( 292,677 ) 582 592 ( 168,650 ) 138,400 ( 20,588 ) ( 154,360 ) 200,057 ( 44,001 ) ( 94,048 ) 153,988 217,931 63,943 $ 123,883 $ 217,931

The accompanying notes are an integral part of these parent company only financial statements.

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SINCERE NAVIGATION CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS DECEMBER 31, 2022 AND 2021

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANISATION

Sincere Navigation Corporation (the “Company”) was incorporated in 1968 with an original capital of $1,000. On December 31, 1988, the Company was the surviving company in the merger with Karson and Tai Hsing Navigation Corporation to meet operating demands and further improve capital structure. The Company’s shares have been listed on the Taiwan Stock Exchange since December 1989. The Company is engaged in tug and barge services, and operating a shipping agency.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only financial statements were authorised for issuance by the Board of Directors on March 9, 2023.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2022 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts— cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018–2020	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

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(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2023 are as follows:

New Standards,Interpretations andAmendments Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’	Effective date by International Accounting StandardsBoard
	January 1, 2023 January 1, 2023 January 1, 2023

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

New Standards,Interpretations and Amendments

Effective date by International Accounting Standards Board

Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts' Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 – comparative information' Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’

To be determined by International Accounting Standards January 1, 2024 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2024 January 1, 2024

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

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(1) Compliance statement

These parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation

• A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:

Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the parent company only financial statements are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Company’s presentation currency.

Foreign currency transactions and balances

• A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

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• D. All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.

(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Accounts receivable

• A. Accounts receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(6) Impairment of financial assets

Financial assets at amortised cost including accounts receivable or contract assets that have a significant financing component, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

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(7) Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

－ (8) Leasing arrangements (lessor) lease receivables

Based on the terms of a lease contract, a lease is classified as a finance lease if the lessee assumes substantially all the risks and rewards incidental to ownership of the leased asset.

• A. At commencement of the lease term, the lessor should record a finance lease in the balance sheet as ‘lease receivables’ at an amount equal to the gross investment in the lease (including initial direct costs). The difference between gross lease receivable and the present value of the receivable is recognised as ‘unearned finance income of finance lease’.

• B. The lessor should allocate finance income over the lease term based on a systematic and rational basis reflecting a constant periodic rate of return on the lessor’s net investment in the finance lease.

• C. Lease payments (excluding costs for services) during the lease term are applied against the gross investment in the lease to reduce both the principal and the unearned finance income.

(9) Investments accounted for using equity method / subsidiaries

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Inter-company transactions, balances and unrealised gains or losses on transactions between the Company and its subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise the losses in proportion to the ownership.

• D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• E. Pursuant to the Rules Governing the Preparation of Financial Statements by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only

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financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

(10) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 42 years Vessels and equipment 2.5 ~ 20 years Office equipment 3 ~ 7 years

• (11) Leasing arrangements (lessee) - right-of-use assets / lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments.

  • The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

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• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability; and

• (b) Any lease payments made at or before the commencement date.

  • The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss.

(12) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(13) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(14) Accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(15) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

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(16) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

B. Pensions

• (a) Defined contribution plan

For defined contribution plan, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plan

  • i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

  • ii. Remeasurements arising on defined benefit plan are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ and supervisors’ remuneration

Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(17) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

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• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

(18) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

(19) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Board of Directors.

(20) Revenue recognition

A. Revenue recognition of services

Revenue from providing services is recognised in the accounting period in which the services are rendered. For contracts, revenue is recognised based on the percentage of completion of service rendered. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

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B. Leases of vessels service revenue

The Company provides leases of vessels service. Rental revenue is recognised when the amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the Company. As customers can obtain and have rights of performance benefits at the same time, and thus the relevant revenue is recognised when the service is provided.

• C. Incremental costs of obtaining a contract

Given that the contractual period lasts less than one year, the Group recognises the incremental costs of obtaining a contract as an expense when incurred although the Group expects to recover those costs.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

Impairment assessment of tangible assets

The Company assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Company strategy might cause material impairment on assets in the future.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and petty cash Checking accounts and demand deposits Time deposits	December31,2022 12 $ 62,451 61,420 123,883 $	December31,2021
		12 $ 217,919 -
		217,931 $

• A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. The Company’s cash and cash equivalents pledged to others as collateral were classified as other non-current assets. Related information is provided in Note 8.

(2) Investments accounted for using equity method

• A. The details of investments are as follows:

Norley Corporation Inc. Heywood Limited Sincere Navigation Corporation (Singapore) Pte. Ltd.	December31,2022 12,410,836 $ 5,909,694 39,398 18,359,928 $	December 31, 2021
		11,141,053 $ 5,082,954 -
		16,224,007 $

• B. The Company’s share of profit of subsidiaries accounted for using equity method is listed below:

Norley Corporation Inc. Heywood Limited Sincere Navigation Corporation (Singapore) Pte. Ltd.	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022 2021 48,835 $ 59,102) ($ 262,880 710,890 35,249 - 346,964 $ 651,788 $	2021
		651,788 $

• C. Details of the Company’s subsidiaries are provided in Note 4(3) of the Company’s consolidated financial statements for the year ended December 31, 2022.

• D. On June 9, 2022, the Company increased its long-term equity investment in Sincere Navigation Corporation (Singapore) Pte. Ltd. in the amount of to $2,998 (USD $10 thousand).

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(3) Property, plant and equipment

At January 1, 2022 Cost Accumulated depreciation 2022 Opening net book amount Additions Finance lease Retirement-cost Retirement-accumulated depreciation Depreciation Closing net book amount At December 31, 2022 Cost Accumulated depreciation

Buildings Vessels and Office Land and structures equipment equipment Total 90,215 $ 28,191 $ 577,801 $ 2,997 $ 699,204 $ - 17,920) ( 20,109) ( 1,302) ( 39,331) ( 90,215 $ 10,271 $ 557,692 $ 1,695 $ 659,873 $ 90,215 $ 10,271 $ 557,692 $ 1,695 $ 659,873 $ - 762 16,354 740 17,856 - - 541,267) ( - 541,267) ( - - 4,630) ( - 4,630) ( - - 4,630 - 4,630 - 681) ( 32,779) ( 518) ( 33,978) ( 90,215 $ 10,352 $ - $ 1,917 $ 102,484 $ 90,215 $ 28,953 $ - $ 3,737 $ 122,905 $ - 18,601) ( - 1,820) ( 20,421) ( 90,215 $ 10,352 $ - $ 1,917 $ 102,484 $

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At January 1, 2021 Cost Accumulated depreciation 2021 Opening net book amount Additions Disposal Impairment loss Depreciation Closing net book amount At December 31, 2021 Cost Accumulated depreciation

Buildings Vessels and Office Land and structures equipment equipment Total 90,215 $ 28,191 $ 938,931 $ 1,808 $ 1,059,145 $ - 17,264) ( 556,435) ( 986) ( 574,685) ( 90,215 $ 10,927 $ 382,496 $ 822 $ 484,460 $ 90,215 $ 10,927 $ 382,496 $ 822 $ 484,460 $ - - 577,801 1,189 578,990 - - 320,725) ( - 320,725) ( - - 24,782) ( - 24,782) ( - 656) ( 57,098) ( 316) ( 58,070) ( 90,215 $ 10,271 $ 557,692 $ 1,695 $ 659,873 $ 90,215 $ 28,191 $ 577,801 $ 2,997 $ 699,204 $ - 17,920) ( 20,109) ( 1,302) ( 39,331) ( 90,215 $ 10,271 $ 557,692 $ 1,695 $ 659,873 $

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• A. The estimated useful lives of the Company’s significant components of vessels and equipment are as follows:

  • (a) Vessel 20 years (b) Repairs and dry-dock inspection of vessel 2.5 years

• B. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation: None.

• C. Impairment information about the property, plant and equipment is provided in Note 6(5).

• D. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

• E. Information of finance lease for vessels is provided in Note 6(4).

• －

• (4) Leasing arrangements lessor

• A. The Company leases vessels and equipment to others under finance lease. Based on the terms of the lease contracts, the lessees have the right to purchase vessels when the leases expire. Information on profit and loss accounts relating to lease contracts is as follows:

Finance income from the net investment in the finance lease	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022 800 $	2021
		- $

• B. The maturity analysis of the undiscounted lease payments in the finance lease is as follows:

2022 2023 2024 2025 2026 2027 After 2028 Total		December31,2022
		$ 3,336 39,232 39,340 39,232 39,232 39,232 412,628 612,232 $

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• C. Reconciliation of the undiscounted lease payments and the net investment in the finance lease is provided as follows:

provided as follows:
Current Non-current Undiscounted lease payments $ 39,232 $ 569,664 Unearned finance income 9,263) ( 64,056) ( Net investment in the lease 29,969 $ 505,608 $ December 31, 2022	Current Non-current $ - $ - - - - $ - $ December 31, 2021
	$ - - - $	$ - - - $

The Company had a significant increase in the net investment in the finance lease by $535,577 arising from the financial lease of the Company's vessels and equipment to the subsidiary, Sincere Navigation Corporation (Singapore) Pte. Ltd., from December 1, 2022.

(5) Impairment of non-financial assets

• A. The Company recognised impairment loss amounting to $0 and $24,782 for the years ended December 31, 2022 and 2021, respectively. Details of the loss are as follows:

				Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022
					Recognised in other
				Recognised in		comprehensive
				profit or loss		income
Impairment loss-Vessels		and equipment-net		- $	$	-
				For the year ended December 31, 2021
					Recognised in other
				Recognised in		comprehensive
				profit or loss		income
Impairment loss-Vessels		and equipment-net		24,782 $	$	-
The impairment	loss reported by operating segments is as follows:
	For the year ended		December 31, 2022 For theyear ended			December31,2021
			Recognised in other			Recognised in other
		Recognised in	comprehensive Recognised in			comprehensive
		profit or loss		income profit or loss		income
Bulk carrier	$	-	$	- 24,782 $		- $

• B. The impairment loss reported by operating segments is as follows:

• C. A vessel “Madonna III” held by the Company, whose recoverable amount was lower than the book value, resulted in the recognition of impairment loss. The Company wrote down the carrying amount of the asset based on the recoverable amount and recognised an impairment loss of $24,782 in the second quarter of 2021. The Company had completed the sale of the vessel in the third quarter of 2021.

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(6) Short-term borrowings

Type ofborrowings Bank borrowings Secured borrowings Unsecured borrowings Type ofborrowings Bank borrowings Secured borrowings Unsecured borrowings	December31,2022 575,000 $ 1,020,000 1,595,000 $ December31,2021 120,000 $ 730,000 850,000 $	Interestraterange Collateral 1.22%-2.06% Land, buildings, promissory notes and pledged time deposits 1.10%~2.74% Promissory notes Interestraterange Collateral 1.20%-1.22% Land, buildings and promissory notes 1.10%~1.44% Promissory notes

Guarantees for the credit line of the Company’s short-term borrowings provided by related parties and subsidiary are as follows:

Jack Hsu Jack Hsu Heywood Limited	December31,2022 1,100,000 $ 400,000 500,000	December31,2021 Footnote 1,100,000 $ Guarantee 400,000 Promissory notes - Jointly guarante

(7) Pensions

• A. Defined benefit pension plan

• (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit by next March.

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(b) The amounts recognised in the balance sheet are as follows:

		December	31,2022		December31,2021
Present value of defined benefit obligations	($		41,545)	50,361) ($
Fair value of plan assets			29,120		26,763
Net defined benefit liability	(		12,425)	(	23,598)
Contributions in transit of plan assets			12		-
Net liability recognised in the balance sheet	($		12,413)	23,598) ($

(c) Movements in net defined benefit liabilities are as follows:

Present value of defined benefit obligations Year ended December 31, 2022 Balance at January 1 50,361) ($ Current service cost 326) ( Interest (expense) income 352) ( 51,039) ( Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions 1,478 Experience adjustments 489) ( 989 Pension fund contribution - Paid pension 8,505 Balance at December 31 41,545) ($

ofplan assets benefit liability 26,763 $ 23,598) ($ - 326) ( 187 165) ( 26,950 24,089) ( 2,002 2,002 - 1,478 - 489) ( 2,002 2,991 168 168 - 8,505 29,120 $ 12,425) ($ Fair value Net defined

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Present value of defined benefit obligations Year ended December 31, 2021 Balance at January 1 58,762) ($ Current service cost 319) ( Interest (expense) income 176) ( 59,257) ( Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in demographic 30) ( assumptions Change in financial assumptions 1,412 Experience adjustments 1,666) ( 284) ( Pension fund contribution - Paid pension 9,180 Balance at December 31 50,361) ($

ofplan assets benefit liability 25,909 $ 32,853) ($ - 319) ( 78 98) ( 25,987 33,270) ( 420 420 - 30) ( - 1,412 - 1,666) ( 420 136 356 356 - 9,180 26,763 $ 23,598) ($ Fair value Net defined

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2022 and 2021 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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(e) The principal actuarial assumptions used were as follows:

	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022	2021
Discount rate	1.20%	0.70%
Future salary increases	3.25%	3.25%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Increase Decrease 0.25% 0.25% December 31, 2022 Effect on present value of defined benefit obligation 710) ($ 729 $ December 31, 2021 Effect on present value of defined benefit obligation 832) ($ 856 $ Discountrate	Increase Decrease 0.25% 0.25% 611 $ 598) ($ 708 $ 693) ($ Future salaryincreases

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2023 amount to $150.

B. Defined contribution pension plan

Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2022 and 2021 were $1,312 and $1,338, respectively.

(8) Share capital

As of December 31, 2022 and 2021, the Company’s authorised capital was $7,000,000 and the paid-

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in capital was $5,853,533, consisting of 585,353,297 common shares with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

(9) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(10) Retained earnings

• A. Based on the Company's Articles of Incorporation, the Company's net income (less income taxes and prior years’ losses, if any) is appropriated in the following order:

• (a) 10% for legal reserve.

• (b) Special reserve.

• (c) Appropriation of remaining earnings according to the decision of the Board of Directors and stockholders.

The Board of Directors can distribute all or part of the distributable dividends and bonus, capital surplus or legal reserve in the form of cash as resolved by a majority vote at their meeting attended by two-thirds of the total number of directors and report to the shareholders which the aforementioned regulation of requiring resolution from the shareholders is not applicable.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

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D. Appropriation of earnings

• (a) The appropriations of 2021 and 2020 earnings had been resolved at the stockholders’ meeting on June 10, 2022 and August 24, 2021, respectively. Details are summarised below:

Dividends per share Amount (in dollars) Legal reserve 70,430 $ Special reserve 468,299 Cash dividends 585,353 1.00 1,124,082 $ 2021	Dividends per share Amount (in dollars) 14,118 $ 866,142 292,677 0.50 $ 1,172,937 $ 2020

• (b) Subsequent events: the appropriations of 2022 earnings had been proposed by the Board of Directors on March 9, 2023. Details are summarised below:

Legal reserve Cash dividends Reversal of special reserve	2022
	Dividends per share Amount (in dollars) 19,955 $ 292,677 0.50 $ 312,632 $ 1,785,959 $

As of March 9, 2023, aforementioned appropriations of 2022 earnings have not yet been resolved at the stockholders’ meeting, except for cash dividends which had already been decided by the Board of Directors and only need to be reported at the stockholders’ meeting.

(11) Operating revenue

Revenue from contracts with customers Rental revenue Total	For theyears ended December31,	For theyears ended December31,
	2022 42,098 $ 85,537 127,635 $	2021
		261,512 $ -
		261,512 $

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A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of services over time in the following major categories:

For the year ended December 31, 2022 Revenue from external customer contracts Timing of revenue recognition Over time For the year ended December 31, 2021 Revenue from external customer contracts Timing of revenue recognition Over time	Bulkcarrier 39,448 $ 39,448 $ Bulkcarrier 258,976 $ 258,976 $	Management service 2,650 $ 2,650 $ Management service 2,536 $ 2,536 $	Total 42,098 $ 42,098 $ Total
			261,512 $
			261,512 $

B. Contract assets and liabilities

The Company has recognised the following revenue-related contract assets and liabilities:

Contract assets- bulk carrier Contract liabilities- bulk carrier	December31,2022 - $ - $	December31,2021 133,402 $ 49,455 $	January1,2021
			26,106 $
			1,077 $

• C. For the years ended December 31, 2022 and 2021, contract liabilities at the beginning of the year amounted to $49,455 and $1,077, respectively, which were fully recognised as operating revenue in the same year.

(12) Interest income

Interest income from bank deposits Interest income from finance lease	For theyears ended December31,	For theyears ended December31,
	2022 968 $ 800 1,768 $	2021
		108 $ -
		108 $

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(13) Other income

		Forthe years ended	Forthe years ended	December31,
		2022		2021
Fee income from endorsements and guarantees	$	1,830	$	3,418
Rent income		351		366
Other income - others		8,081		1,669
	$	10,262	$	5,453

(14) Other gains and losses

		Forthe years ended	Forthe years ended	December31,
		2022		2021
Net currency exchange (loss) gain	($	170,028)	$	43,690
Gains on disposals of property, plant		-		6,997
and equipment
Impairment loss on property, plant and equipment		-	(	24,782)
Claim loss	(	1,440)		-
Other losses	(	12)	(	37)
	($	171,480)	$	25,868

(15) Finance costs

Interest expense: Interest expense on bank borrowings Lease liabilities	2022 2021 15,778 $ 10,153 $ 7 14 15,785 $ 10,167 $ For theyears ended December31,	2022 2021 15,778 $ 10,153 $ 7 14 15,785 $ 10,167 $ For theyears ended December31,
		10,153 $ 14
		10,167 $

(16) Expenses by nature

Employee benefit expense Depreciation Amortisation	Forthe years endedDecember	Forthe years endedDecember	Forthe years endedDecember	31,
	2022	Total 65,755 $ 34,486 103		2021
	Operating Operating costs expenses $ - $ 65,755 33,287 1,199 - 103		Operating costs $ - 57,452 -	Operating expenses $ 67,771 972 59	Total
					67,771 $ 58,424 59

~35~

(17) Employee benefit expense

For the years ended December 31,

		Fort	he years endedDecember	31,
Wages and salaries Labor and health insurance fees Pension costs Directors' remuneration Other personnel expenses Total	Operating costs - $ - - - - - $	Operating expenses 52,134 $ 3,141 1,803 7,027 1,650 65,755 $ 2022	Operating Total costs 52,134 $ - $ 3,141 - 1,803 - 7,027 - 1,650 - 65,755 $ - $	Operating expenses 52,305 $ 3,350 1,755 9,173 1,188 67,771 $ 2021	Total 52,305 $ 3,350 1,755 9,173 1,188
					67,771 $

• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 1% for employees’ compensation and shall not be higher than 5% for directors’ and supervisors’ remuneration.

• B. For the years ended December 31, 2022 and 2021, employees’ compensation was accrued at $5,067 and $7,303, respectively; while directors’ and supervisors’ remuneration was accrued at $5,067 and $7,303, respectively. The aforementioned amounts were recognised in salary expenses.

The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 3% of distributable profit of current year for the year ended December 31, 2022. The employees’ compensation and directors’ and supervisors’ remuneration resolved by the Board of Directors were both $5,067, and the employees’ compensation will be distributed in the form of cash.

Employees’ compensation and directors’ and supervisors’ remuneration for 2021 was $7,303 as resolved by the Board of Directors which was in agreement with the amount recognised in the 2021 financial statements.

Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

• C. For the years ended December 31, 2022 and 2021, the average number of the Company’s employees per month was 33 employees, of which 6 directors were not the Company’s employees.

~36~

• D. (a) For the years ended December 31, 2022 and 2021, the average employee benefit expense was $2,175 and $2,170, respectively.

• (b) For the years ended December 31, 2022 and 2021, the average employee salary expense was $1,931 and $1,937, respectively.

• (c) Change in adjustments of the average employee salaries and wages was (0.3%).

• E. The Company adopts an independent director system and has no supervisor.

• F. The Company’s salary and compensation policy (including directors, supervisors, managers and employees) is as follows:

• (a) The remuneration committee has established the policy and periodically reviews the performance assessment of directors and managers as well as the policy, system, standard and structure of remuneration, and shall report the recommendations, if any, to the Board of Directors for discussion. Salaries were paid by reference to the industry salary standard, the Company’s operational situation and organisational structure, and the necessary adjustments shall be made according to the market salary dynamics, changes in the overall economic and industrial climate, and in compliance with the related laws and regulations.

• (b) The directors’ remuneration shall not be distributed for variable remuneration other than the annual fixed transportation allowance and the remuneration according to the Articles of Incorporation of the Company. The Company’s operating objectives, financial position and directors’ responsibilities were fully considered for the directors’ remuneration which were linked to the business performance and profit, then shall be reported to the Board of Directors for resolution after the review by the remuneration committee.

• (c) The salary and compensation of managers and employees are based on their education and work background, professional knowledge and expertise, professional seniority as well as personal performance. The salary will be adjusted annually, corresponding to individual performance, according to the overall operating situation of the Company.

• (d) The Company shall distribute year-end bonus according to operating performance and distribute employees’ compensation according to pre-tax profit situation, the amount distributed shall be linked to the operating performance and profit, and shall be reported to the Board of Directors for resolution after the review by the remuneration committee.

~37~

(18) Income tax

A. Income tax expense

• (a) Components of income tax expense:

			Forthe years ended	Forthe years ended	Forthe years ended	December31,
			2022			2021
Current tax:
Current tax on profits for the year		$	-		$	91,467
Prior year income tax underestimation			655			859
Total current tax			655			92,326
Deferred tax:
Origination and reversal of temporary
differences	(		39,068)	(		80,772)
Total deferred tax	(		39,068)	(		80,772)
Income tax (benefit) expense	($		38,413)		$	11,554

• (b) The income tax credit relating to components of other comprehensive income is as follows:

			For the years ended	For the years ended	December 31,
			2022		2021
Remeasurement of defined benefit
obligations	$		598	$	27
Reconciliation between income tax expense and	accounting profit:
			Forthe years ended		December31,
			2022		2021
Tax calculated based on profit before tax and
statutory tax rate		$	31,749	$	143,149
Tax exempt income by tax regulation	(		70,817)	(	130,358)
Prior year income tax underestimation			655		859
Effects from backward remittance of earnings			-	(	2,096)
Income tax (benefit) expense	($		38,413)	$	11,554

B. Reconciliation between income tax expense and accounting profit:

~38~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

					2022	2022
						Recognised in
							other
			Recognised in			comprehensive
		January1		profit	or loss		income		December31
Temporary differences:
－Deferred tax assets:
Net operating loss
carryforwards	$	-		$	1,024	$	-		$	1,024
Unfunded pension expense		4,720	(		1,639)	(	598)			2,483
Unused compensated
absences		303	(		50)		-			253
Unrealised exchange loss		-			4,080		-			4,080
Other		5	(		5)		-			-
		5,028			3,410	(	598)			7,840
－Deferred tax liabilities:
Unrealised exchange gain	(	35,658)			35,658		-			-
	($	30,630)		$	39,068	($	598)		$	7,840
					2021
						Recognised in
							other
			Recognised in			comprehensive
		January1		profit	or loss		income		December31
Temporary differences:
－Deferred tax assets:
Unfunded pension expense	$	6,570	($		1,823)	($	27)		$	4,720
Unused compensated
absences		288			15		-			303
Other		-			5		-			5
		6,858	(		1,803)	(	27)			5,028
－Deferred tax liabilities:
Unrealised investment
income	(	91,136)			91,136		-			-
Unrealised exchange gain	(	27,097)	(		8,561)		-	(		35,658)
	(	118,233)			82,575		-	(		35,658)
	($	111,375)		$	80,772	($	27)	($		30,630)

~39~

• D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

December 31, 2022

Year incurred Amount filed/ assessed 2022 5,120 $	Unused amount Unrecognised deferred taxassets Expiry year 5,120 $ - $ 2032

• E. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2022 and 2021, the amounts of temporary differences unrecognised as deferred tax liabilities were $18,092,427 and $15,959,503, respectively.

• F. The Company’s income tax returns through 2020 have been assessed and approved by the Tax Authority.

(19) Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares - employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	For theyear ended December31,2022	For theyear ended December31,2022
	Weighted average number of ordinary shares outstanding Amount aftertax (sharesinthousands) 197,158 $ 585,353 197,158 585,353 - 260 197,158 $ 585,613	Earnings per share (indollars)
		0.34 $
		-
		0.34 $

~40~

					Forthe year	Forthe year	endedDecember	31,	31,	2021
						Weighted average
						number of ordinary
						shares outstanding			Earnings per share
			Amount aftertax			(sharesinthousands)				(indollars)
Basic earnings per share
Profit attributable
to ordinary shareholders		$			704,189		585,353		$		1.20
Diluted earnings per share
Profit attributable to
ordinary shareholders					704,189		585,353
Assumed conversion of
all dilutive potential
ordinary shares
- employees’
compensation					-		259				-
Profit attributable to
ordinary shareholders
plus assumed conversion
of all dilutive potential
ordinary shares		$			704,189		585,612		$		1.20
Changes in liabilities from	financing activities
						Long-term notes and			Liabilities from
	Short-term				Lease	accounts payable -				financing
	borrowings			liabilities			related parties		activities-gross
At January 1, 2022	$	850,000		$	470	$	1,660,800		$	2,511,270
Proceeds from borrowings		745,000			-		-			745,000
Payment of principal			-	(	473)	(	168,650)	(		169,123)
Impact of changes in
foreign exchange rate			-		3		196,900			196,903
At December 31, 2022	$	1,595,000		$	-	$	1,689,050		$	3,284,050

(20) Changes in liabilities from financing activities

~41~

At January 1, 2021 Proceeds from borrowings Additions Payment of principal Impact of changes in foreign exchange rate Changes in cash flow from financing activities At December 31, 2021	Long-term notes and Liabilities from Short-term Lease accounts payable - financing borrowings liabilities relatedparties activities-gross 840,000 $ - $ 1,566,400 $ 2,406,400 $ 10,000 - - 10,000 - - 138,400 138,400 - 362) ( - 362) ( - 1) ( 44,000) ( 44,001) ( - 833 - 833 850,000 $ 470 $ 1,660,800 $ 2,511,270 $

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Relationship with the Company Jack Hsu Chairman Heywood Limited (Heywood) Subsidiary of the Company Norley Corporation Inc. (Norley) Subsidiary of the Company Kairos Marine Limited (Formerly Oak Agencies Limited) Other related party Asia Century Navigation Co., Ltd. Other related party Diamonds Ocean Limited Other related party World Sea Navigation Limited Other related party

Note: For names and relationship of subsidiaries, second-tier subsidiaries and third-tier subsidiaries, refer to Note 4(3) in the consolidated financial statements.

(2) Significant related party transactions and balances

A. Operating revenue

Operating revenue
Management revenue: Other related parties Rental revenue: Keystone Shipping Co. Ltd.	Forthe years endedDecember31,
	2022 2,650 $ 85,537 $	2021
		2,536 $
		- $

Management revenue is the agent revenue arising from vessel agent contract. Sales of services are based on the price lists in force and terms that would be available to the third parties. The Company rented PALONA to Keystone Shipping Co. Ltd., the second-tier subsidiary, on February 18, 2022. This bareboat charter rental contract was completed in the fourth quarter of 2022.

~42~

B. Operating costs

Operating costs
	For theyears ended December31,
	2022	2021
Cost of services:
Heywood Limited	7,155 $	37,217 $
Commission expense:
Other related party	519 $	6,709 $

Note: Commission fee of $6,709 for the year ended December 31, 2021 includes the deduction item of other gains and losses amounting to $3,343.

C. Other income

(a) Fee income from endorsements and guarantees: Pacifica Maritime Limited Ocean Grace Limited Bridge Poiema Limited Second-tier subsidiaries (b) Other income (Note) Heywood Limited Norley Corporation Inc.	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022 - $ 580 1,250 - 1,830 $ 1,851 $ 5,280 7,131 $	2021
		879 $ 756 1,255 528 3,418 $
		- $ -
		- $

Note: Increase the income for the year ended 2019 and 2020, on endorsements and guarantees, and rendering transportation services from Heywood Limited and Norley Corporation Inc., amounted to $2,102 and $5,029, respectively.

D. Other receivables / payables

Other receivables / payables arising from agent revenue, prepayments on behalf of other related parties or agents, advances and fee income from endorsements and guarantees are as follows:

Receivables: Norley Corporation Inc. Other related parties	December31,2022 1,922 $ 230 2,152 $	December31,2021
		3,313 $ 362
		3,675 $

~43~

December 31, 2022 December 31, 2021

Payables: - Heywood Limited 4,723 Norley Corporation Inc. 410 - Other related parties - 696 $ 410 $ 5,419

• E. Acquisition of property, plant and equipment:

Keystone Shipping Co. Ltd.

For the years ended December 31, 2022 2021 $ - $ 577,801

• F. Received the dividends from subsidiaries

Norley Corporation Inc.

For the years ended December 31, 2022 2021 $ - $ 445,200

(USD 16,000 thousand)

On April 21, 2021, the Board of Directors of Norley Corporation resolved to distribute dividends which were received by the Company in May 2021.

• G. Leasing arrangements - lessor

• (a) The Company leases vessels and equipment to Sincere Navigation Corporation (Singapore) Pte. Ltd. Rents are paid at the end of the month.

• (b) Finance lease receivable

Finance lease receivable
Associates	December31,2022 535,577 $	December31,2021
		- $

~44~

• H. Financing (shown as ‘long-term notes and accounts payable - related parties’ and ‘other payables

• related parties’)

Norley Corporation Inc. Heywood Limited Norley Corporation Inc. Heywood Limited	For theyear ended December31,2022	For theyear ended December31,2022	For theyear ended December31,2022	For theyear ended December31,2022
	Maximum Ending Total interest balance balance Interestrate expense 1,047,900 $ 767,750 $ - - $ 1,646,700 921,300 - - 2,694,600 $ 1,689,050 $ - $ (US$ 90,000 thousand) (US$ 55,000 thousand) Forthe yearendedDecember31,2021			Total interest expense
				- $ -
				- $
	Maximum balance 998,900 $ 696,250 1,695,150 $ (US$ 60,000 thousand)	Ending balance 968,800 $ 692,000 1,660,800 $ (US$ 60,000 thousand)	Interestrate - -	Total interest expense
				- $ -
				- $

• I. The Company was contracted to render transportation services for the years ended December 31, 2022 and 2021 and executed the contract by sub-contracting it to its second-tier subsidiary who provides chartered ship services with the same contractual terms. The revenue and costs arising from this transaction are expressed as a consolidated net amount in the financial statements. The details of the transactions are as follows:

For the year ended December 31, 2022

Ocean Grace Limited Maxson Shipping Inc. Howells Shipping Inc. Clifford Navigation Corporation Poseidon Marine Ltd. Everprime Shipping Limited Ocean Wise Limited	Amount 545,792 $ 153,841 140,429 45,490 34,601 23,254 19,297 962,704 $	Ending balance ofpayables 10,212 $ - - - - - - 10,212 $	Ending balance ofprepayments
			- $ - - - - - -
			- $

~45~

For the year ended December 31, 2021

Ocean Grace Limited Poseidon Marine Ltd. Everprime Shipping Limited Rockwell Shipping Limited Maxson Shipping Inc. Ocean Wise Limited Second-tier subsidiaries	Amount 687,067 $ 346,694 339,034 287,138 230,494 215,315 94,916 2,200,658 $	Ending balance ofpayables 73,172 $ 13,322 - 10,546 23,478 55,926 8,207 184,651 $	Ending balance ofprepayments
			- $ - 13,783 - - - -
			13,783 $

• J. The Company issued promissory notes to Mega Bank as collateral for the indirect investees as resolved by the Board of Directors. Refer to Note 13(1)B.

• K. Other guarantee transactions

Refer to Note 6(6) for details.

(3) Key management compensation

Salaries and other short-term employee benefits Post-employment benefits	2022 2021 25,990 $ 27,571 $ 607 530 26,597 $ 28,101 $ For theyears ended December31,	2022 2021 25,990 $ 27,571 $ 607 530 26,597 $ 28,101 $ For theyears ended December31,
		27,571 $ 530
		28,101 $

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

Guarantee deposits paid (shown as other non-current assets) Land, building and structures	December31,2022 6,922 $ 99,185 106,107 $	December31,2021 Purpose 6,922 $ Deposit of golf certificates 99,114 Credit lines of short-term borrowings 106,036 $	Purpose

~46~

1. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

• A. For the details on the endorsements and guarantees provided by the Company to the indirect investees, refer to Note 7(2) J.

• B. The Company has outstanding notes payable for bank financing amounting to $1,125,000.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

For the details of the appropriation of 2022 earnings as proposed by the Board of Directors, refer to Note 6(10) D.

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

~47~

(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at amortised cost Cash and cash equivalents Accounts receivable, net Other receivables Other receivables - related parties Guarantee deposits paid Finance lease receivable due from related parties, net Financial liabilities Financial liabilities at amortised cost Short-term borrowings Other payables Other payables - related parties Long-term notes and accounts payable - related parties Lease liabilities	December31,2022 123,883 $ 10,212 425 2,152 6,922 143,594 $ 535,577 $ 1,595,000 $ 19,600 10,622 1,689,050 3,314,272 $ - $	December31,2021
		217,931 $ 63,021 25,201 3,675 6,922 316,750 $
		- $
		850,000 $ 29,863 190,070 1,660,800
		2,730,733 $
		470 $

• B. Financial risk management policies

• (a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk.The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial position and financial performance.

• (b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Company operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company used in various functional currency, primarily with respect to the USD and JPY. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

~48~

• ii. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

Foreign currency amount (Inthousands) Exchangerate Book value (NTD) (Foreign currency: functional currency) Financial assets Monetary items USD：NTD 21,057 $ 30.71 646,664 $ Long-term equity investments accounted for using the equity method USD：NTD 597,849 $ 30.71 18,359,928 $ Financial liabilities Monetary items USD：NTD 55,346 $ 30.71 1,699,672 $ Foreign currency amount (Inthousands) Exchangerate Book value (NTD) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 15,905 $ 27.68 440,353 $ Long-term equity investments accounted for using the equity method USD:NTD 586,127 $ 27.68 16,224,007 $ Financial liabilities Monetary items USD:NTD 67,065 $ 27.68 1,856,583 $ December31,2022 December31,2021	Foreign currency amount (Inthousands) Exchangerate Book value (NTD) (Foreign currency: functional currency) Financial assets Monetary items USD：NTD 21,057 $ 30.71 646,664 $ Long-term equity investments accounted for using the equity method USD：NTD 597,849 $ 30.71 18,359,928 $ Financial liabilities Monetary items USD：NTD 55,346 $ 30.71 1,699,672 $ Foreign currency amount (Inthousands) Exchangerate Book value (NTD) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 15,905 $ 27.68 440,353 $ Long-term equity investments accounted for using the equity method USD:NTD 586,127 $ 27.68 16,224,007 $ Financial liabilities Monetary items USD:NTD 67,065 $ 27.68 1,856,583 $ December31,2022 December31,2021
	440,353 $ 16,224,007 $ 1,856,583 $

iii. The unrealised exchange (loss) gain arising from significant foreign exchange variation on the monetary items held by the Company for 2022 and 2021 amounted to ($198,689) and $42,811, respectively.

~49~

• iv. Analysis of foreign currency market risk arising from significant foreign exchange variation:

Degree of Effect on profit variation or loss (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 7,200 $ Long-term equity investments accounted for using the equity mehtod USD:NTD 1% - $ Financial liabilities Monetary items USD:NTD 1% 16,997 $ Forthe yearendedDecember Sensitivity analysis	Forthe yearendedDecember	Forthe yearendedDecember	31,2022
	Sensitivity analysis
		Effect on profit or loss 7,200 $ - $ 16,997 $	Effect on other comprehensive income
			- $ 183,567 $ - $

For the year ended December 31, 2021

Forthe yearendedDecember	Forthe yearendedDecember	Forthe yearendedDecember	31,2021
Degree of Effect on profit variation or loss (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 4,404 $ Long-term equity investments accounted for using the equity mehtod USD:NTD 1% - $ Financial liabilities Monetary items USD:NTD 1% 18,566 $ Sensitivity analysis	Sensitivity analysis
		Effect on profit or loss 4,404 $ - $ 18,566 $	Effect on other comprehensive income
			- $ 162,240 $ - $

(b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the contract cash flows of the accounts receivable based on the agreed terms.

~50~

• ii. The Company manages its credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, the Company is responsible for managing and analysing the credit risk for each of the new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. The Company adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 180 days based on the terms and obligation completed, there has been a significant increase in credit risk on that instrument since initial recognition.

• iv. The Company adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 3 years.

• v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii)Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• vi. The Company classifies customers’ accounts receivable in accordance with customer types. The Company applies the modified approach using the provision matrix to estimate expected credit loss.

• vii. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights. As of December 31, 2022 and 2021, the Company’s written-off financial assets that are still under recourse procedures amounted to $0 and $477, respectively.

~51~

• viii. The Company used the forecastability of Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of accounts receivable and lease payments receivable. As of December 31, 2022 and 2021, the provision matrix is as follows:

==> picture [422 x 224] intentionally omitted <==

----- Start of picture text -----

December 31, 2022 Not past due Total
Expected loss rate Approximately 0.03%
Total book value $ 10,212 $ 10,212
Loss allowance $ - $ -
December 31, 2021 Not past due Total
Expected loss rate Approximately 0.03%
Total book value $ 63,021 $ 63,021
Loss allowance $ - $ -
The ageing analysis of accounts receivable is as follows:
December 31, 2022 December 31, 2021
Not past due $ 10,212 $ 63,021
----- End of picture text -----

• ix. The ageing analysis of accounts receivable is as follows:

• (c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, external regulatory or legal requirements.

• ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Company treasury.

~52~

• iii. The table below analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities

December 31, 2022 Short-term borrowings Other payables Other payables - related parties Long-term notes and accounts payable - related parties	Up to1year 1,595,000 $ 19,600 10,622 -	Between 1 year and 5 years Over5 years - $ - $ - - - - 1,689,050 -

December 31, 2021 Up to 1 year Short-term borrowings 850,000 $ Other payables 29,863 Other payables - related parties 190,070 Lease liabilities 473 Long-term notes and accounts payable - related parties - Non-derivative financial liabilities:	Between 1 year and5 years Over 5 years - $ - $ - - - - - - 1,660,800 -

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Refer to table 1.

• B. Provision of endorsements and guarantees to others: Refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): None.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Refer to table 3.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.

~53~

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 4.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Refer to table 5.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Refer to table 6.

(3) Information on investments in Mainland China

• A. Basic information: Refer to table 7.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Major shareholders information

Name, number of shares and shareholding ratio of shareholders whose ownership reached 5%: Refer to table 8.

14. SEGMENT INFORMATION

Not applicable.

~54~

SINCERE NAVIGATION CORPORATION DETAILS OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2022

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Cash on hand and petty cash Checking accounts Demand deposits — NTD — USD — JPY Time deposits — USD	Summary 12 $ 2 25,097 $ USD 1,215 thousand rate 30.71 37,310 JPY 183 thousand rate 0.2324 42 62,449 USD 2,000 thousand rate 30.71 61,420 123,883 $ Amount	Summary 12 $ 2 25,097 $ USD 1,215 thousand rate 30.71 37,310 JPY 183 thousand rate 0.2324 42 62,449 USD 2,000 thousand rate 30.71 61,420 123,883 $ Amount
		123,883 $

~55~

SINCERE NAVIGATION CORPORATION DETAILS OF INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2022

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Name		Number of Shares Amount 500 11,141,053 $ 500 5,082,954 100,000 - 16,224,007 $ Balance atJanuary1,2022		Investment income Amount 48,835 $ 262,880 35,249 346,964 $	Additions Amount - $ - 2,998 2,998 $		Reductions (Note) Amount - $ - - - $	Cumulative translation adjustment Amount 1,220,948 $ 563,860 1,151 1,785,959 $		Number of Shares Ownership Amount 500 100% 12,410,836 $ 500 100% 5,909,694 100,000 100% 39,398 18,359,928 $ Balance at December31,2022	Number of Shares Ownership Amount 500 100% 12,410,836 $ 500 100% 5,909,694 100,000 100% 39,398 18,359,928 $ Balance at December31,2022	Net assets 12,413,938 $ 5,909,694 39,689 18,363,321 $	Collateral
		Number of Shares 500 500 100,000								Number of Shares	Ownership 100% 100% 100%
Norley Corporation Inc. Heywood Limited Sincere Navigation Corporation (Singapore) Pte. Ltd.										500 500 100,000			None " "

~56~

SINCERE NAVIGATION CORPORATION

SHORT-TERM LOANS DECEMBER 31, 2022

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

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----- Start of picture text -----

Balance at Term Interest
Type Bank December 31, 2022 of contract rate (%) Loan Commitments Collateral Note
----- End of picture text -----

Guaranteed borrowings Mega Bank " E.SUN Bank Unsecured borrowings First Bank " Fubon Bank " Taiwan Bank " Chang Hwa

120,000 $ within one year 1.22%-2.06% 225,000 $ Land, buildings, and promissory notes 455,000 within one year 1.25%-1.52% 500,000 Promissory notes, guaranteed by Heywood Limited 500,000 within one year 1.19%-1.75% 500,000 Guaranteed by the chairman 200,000 within one year 1.10%-2.16% 200,000 Promissory notes, guaranteed by the chairman 200,000 within one year 1.19%-1.72% 200,000 Promissory notes, guaranteed by the chairman 120,000 within one year 1.20%-2.74% 200,000 Guaranteed by the chairman 1,595,000 $

~57~

SINCERE NAVIGATION CORPORATION

DETAILS OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2022

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items	Summary		Amount
Time charter	Average rent per day × Total days	$	39,448
	$ 844,703 46.7
Bareboat charter-rental
revenue	Rent USD $10,000 per day		85,537
Management service			2,650
		$	127,635

~58~

SINCERE NAVIGATION CORPORATION DETAILS OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2022

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

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----- Start of picture text -----

Items Amount
----- End of picture text -----

Items	Amount
Commission Insurance Depreciation Fuel cost Crew agency fee Other cost	1,031 $ 698 33,287 2,462 5,964 1,172
	44,614 $

~59~

SINCERE NAVIGATION CORPORATION DETAILS OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2022

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Payroll expenses Directors' remuneration Pension Office supplies expenses Travelling expenses Postage and phone/Fax expense Repairs and maintenance expenses Utility fee Insurance Entertainment Taxes Depreciation Amortisation Meals expenses Employee benefits Professional service fees Other expenses	Amount
	52,134 $ 7,027 1,803 308 250 1,320 33 109 3,608 264 438 1,199 103 790 689 5,463 20,467
	96,005 $

~60~

SINCERE NAVIGATION CORPORATION DETAILS OF LABOR, DEPRECIATION AND AMORTIZATIION BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2022 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Refer to Note 6.(16)(17) of the Financial Report.

~61~

Sincere Navigation Corporation

Table 1

Loans to others

For the year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Reason for short-term financing No. （Note 1） Creditor Borrower General ledger account Is a related party Amount of transactions with the borrower Maximum outstanding balance during the year ended December 31, 2022 Balance at December 31, 2022 Actual amount drawn down Interest rate Nature of loan （Note 3） Allowance for doubtful accounts	Collateral	Limit on loans granted to a single party （Note 2）	Ceiling on total loans granted （Note 2）	Footnote
	Item Value
0 Sincere Navigation Corporation None 1 Norley Corporation Inc. Sincere Navigation Corporation Receivables from related parties Y 1,047,900 $ 767,750 $ 767,750 $ - 2 - Working capital - 1 Norley Corporation Inc. Elroy Maritime Service Inc. Receivables from related parties Y 5,153 - - - 2 - Working capital - 2 Heywood Limited Sincere Navigation Corporation Receivables from related parties Y 1,646,700 921,300 921,300 - 2 - Working capital - 2 Heywood Limited Norley Corporation Inc. Receivables from related parties Y 3,532,937 3,367,365 3,367,365 - 2 - Working capital - 3 Elroy Maritime Service Inc. Oak Maritime (Canada) Inc. Receivables from related parties Y 5,800 5,528 5,528 - 2 - Working capital -	- - - - - - - - - -	4,747,641 $ 12,413,938 12,413,938 5,909,694 5,909,694 12,329	6,330,188 $ 12,413,938 12,413,938 5,909,694 5,909,694 12,329	The maximun amount amounted to USD 35,000 thousand for the current period, and the actual amount was USD 25,000 thousand at the end of year. The maximun amount amounted to USD 180 thousand for the current period, and the actual amount was USD 0 at the end of year. The maximun amount amounted to USD 55,000 thousand for the current period, and the actual amount was USD 30,000 thousand at the end of year. The Maximun amount amounted to USD 114,650 thousand for the current period, and the actual amount was USD 109,650 thousand at the end of year. The maximun amount amounted to USD 180 thousand for the current period, and the actual amount was USD 180 thousand at the end of year.

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: In accordance with the finance procedures of the Company, for business transaction purposes, limit on total financial shall not exceed 40% of the Company's net value.

For short-term lending purpose, maximum financing to each subsidiary and total financing is limited 30% to 40% of the Company's net value, respectively. The maximum financing between the subsidiaries which are directly or indirectly 100% owned by the Company or between the subsidiaries which are directly or indirectly 100% owned by the Company and the Company is limited to 100% of the lender's net value.

Note 3: Nature of loans is filled as follows:

• (1) Fill in 1 for business transactions.

• (2) Fill in 2 for short-term financing.

Table 1

Table 2

Sincere Navigation Corporation

Provision of endorsements and guarantees to others For the year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed		Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of December 31, 2022 （Note 4）	Outstanding endorsement/ guarantee amount at December 31, 2022 （Note 5）	Actual amount drawn down （Note 6）	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of endorsements/ guarantees by subsidiary to parent company （Note 7）	Provision of endorsements/ guarantees to the party in Mainland China （Note 7）	Footnote
		Companyname	Relationship with the endorser/ guarantor （Note 2）
0 0 0 0 0 0 0 1 1 1 2 3 4	Sincere Navigation Corporation ˵ ˵ ˵ ˵ ˵ ˵ Norley Corporation Inc. ˵ ˵ Heywood Limited Victory Navigation Inc. Everprime Shipping Limited	Helmsman Navigation Co. Ltd. Everwin Maritime Limited Pacifica Maritime Limited Ocean Grace Limited Brighton Shipping Inc. Rockwell Shipping Limited Bridge Poiema Limited Kenmore Shipping Inc. Pacifica Maritime Limited Steady Way Limited Sincere Navigation Corporation Norley Corporation Inc. Norley Corporation Inc.	2 2 2 2 2 2 2 2 2 2 3 3 3	15,825,471 $ 15,825,471 15,825,471 15,825,471 15,825,471 15,825,471 15,825,471 12,413,938 12,413,938 12,413,938 5,909,694 721,571 718,041	238,395 $ 459,400 1,240,037 1,150,254 34,482 23,288 1,498,230 508,620 235,206 829,665 500,000 644,400 644,400	$ - - - 1,096,347 - - 1,428,015 456,811 224,183 - 500,000 614,200 614,200	$ - - - 580,419 - - 1,249,513 456,811 224,183 - 455,000 - -	$ - - - - - - - - - - 522,070 - -	15.95% 15.95% 15.95% 15.95% 15.95% 15.95% 15.95% 5.49% 5.49% 5.49% 8.46% 85.12% 85.54%	39,563,678 $ 39,563,678 39,563,678 39,563,678 39,563,678 39,563,678 39,563,678 31,034,845 31,034,845 31,034,845 14,774,235 1,803,928 1,795,103	Y Y Y Y Y Y Y N N N N N N	N N N N N N N N N Y N N N	N N N N N N N N N N N N N	Guarantee balance is US$ 0 Guarantee balance is US$ 0 Guarantee balance is US$ 0 Guarantee balance is US$ 35,700 thousand Guarantee balance is US$ 0 Guarantee balance is US$ 0 Guarantee balance is US$ 46,500 thousand Guarantee balance is US$ 14,875 thousand Guarantee balance is US$ 7,300 thousand (Note 9) Guarantee balance is US$ 0 Guarantee balance is US$ 500,000 thousand Guarantee balance is US$ 20,000 thousand (Note 8) Guarantee balance is US$ 20,000 thousand (Note 8)

Table 2, Page 1

Table 2

Sincere Navigation Corporation

Provision of endorsements and guarantees to others For the year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed		Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of December 31, 2022 （Note 4）	Outstanding endorsement/ guarantee amount at December 31, 2022 （Note 5）	Actual amount drawn down （Note 6）	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of endorsements/ guarantees by subsidiary to parent company （Note 7）	Provision of endorsements/ guarantees to the party in Mainland China （Note 7）	Footnote
		Companyname	Relationship with the endorser/ guarantor （Note 2）
5 6 7 8	Ocean Wise Limited Poseidon Marine Ltd. Maxson Shipping Inc. Oak Maritime (Canada) Inc.	Norley Corporation Inc. Norley Corporation Inc. Norley Corporation Inc. Pacifica Maritime Limited	3 3 3 4	927,896 $ 1,326,242 1,097,278 2,340	926,325 $ 926,325 926,325 588	844,525 $ 844,525 844,525 560	$ - - - 560	$ - - - -	91.02% 63.68% 76.97% 23.93%	2,319,740 $ 3,315,605 2,743,195 5,850	N N N N	N N N N	N N N N	Guarantee balance is US$ 27,500 thousand (Note 8) Guarantee balance is US$ 27,500 thousand (Note 8) Guarantee balance is US$ 27,500 thousand (Note 8) Guarantee balance is US$ 18 thousand (Note 9)

• Note 1: The numbers filled in for the endorsements/ guarantees provided by the Company or subsidiaries are as follows:

• (1 )The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:

• (1) Having business relationship.

• (2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.

• (4) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.

• (5) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.

• (6) Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: According to the Company’s “Procedures for Provision of Endorsements and Guarantees”:

• [The Company]

• (1) The limit on endorsements and guarantees provided for aan individual party shall not exceed the Company's equity.

Those which are provided for an individual party due to business relationship, shall not exceed the total amount of transactions with the Company in the most recent year.

• (2) The ceiling on total endorsements and guarantees shall not exceed 250% of the Company's equity.

• [The Company and subsidiaries]

• (1) The limit on endorsements and guarantees provided for aan individual party shall not exceed the Company's equity.

• (2) The ceiling on total endorsements and guarantees shall not exceed 300% of the Company's equity.

• Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

• Note 5: Fill in the amount approved by the Board of Directors or the chairman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Note 8: The outstanding endorsement/guarantee amount that Victory Navigation Inc., Everprime Shipping Limited, Ocean Wise Limited, Poseidon Marine Ltd. and Maxson Shipping Inc. jointly provided to Norley Corporation Inc. is US$ 27.5 million. Note 9: Please refer to Note 9(2)C.

Table 2, Page 2

Sincere Navigation Corporation

Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more

For the year ended December 31, 2022

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	If the counterparty is	a related party, information as to the last transaction of the real estate is disclosed below:	a related party, information as to the last transaction of the real estate is disclosed below:	a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
Steady Way Limited	Rebekah	2022.12.19	790,783 $	790,783 $	GREEN SPANKER SHIPPING S.A.	None	-	-	-	- $	Based on mutual agreement	In consideration of overall operation of the Group.	None

Table 3

Table 4

Sincere Navigation Corporation

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

For the year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2022	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Sincere Navigation Corporation Norley Corporation Inc. (Norley) Heywood Limited (Heywood) Heywood Limited (Heywood)	None Sincere Navigation Corporation Sincere Navigation Corporation Norley Corporation Inc. (Norley)	Norley's parent company Heywood's parent company Associate	- $ 767,750 (USD 25,000 thousand) $ 921,300 (USD 30,000 thousand) $ 3,367,365 (USD 109,650 thousand)	- - - -	- $ - - -	- - - -	- $ - - -	- $ - - -

Table 4

Table 5

Sincere Navigation Corporation

Significant inter-company transactions during the reporting period

For the year ended December 31, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)		Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 0 1 1 1 2 2 2 3 4 5 6 7	Sincere Navigation Corporation ˵ Norley Corporation Inc. ˵ ˵ Heywood Limited ˵ ˵ Victory Navigation Inc. Everprime Shipping Limited Ocean Wise Limited Poseidon Marine Ltd. Maxson Shipping Inc.	Ocean Grace Limited Bridge Poiema Limited Kenmore Shipping Inc. Pacifica Maritime Limited Sincere Navigation Corporation Sincere Navigation Corporation Sincere Navigation Corporation Norley Corporation Inc. Norley Corporation Inc. Norley Corporation Inc. Norley Corporation Inc. Norley Corporation Inc. Norley Corporation Inc.	1 1 1 1 2 2 2 3 2 2 2 2 2	Guarantees ˵ ˵ ˵ Other receivables Guarantees Other receivables ˵ Guarantees (Note 5) ˵ ˵ ˵ ˵	1,096,347 $ 1,428,015 456,811 224,183 767,750 500,000 921,300 3,367,365 614,200 614,200 844,525 844,525 844,525	As per the Company's policy ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵	5.06% 6.59% 2.11% 1.03% 3.54% 2.31% 4.25% 15.54% 2.83% 2.83% 3.90% 3.90% 3.90%

• Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1) Parent company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

• Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

• (1) Parent company to subsidiary is numbered ‘1’.

• (2) Subsidiary to parent company is numbered ‘2’.

• (3) Subsidiary to subsidiary is numbered ‘3’.

• Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the year to consolidated total operating revenues for income statement accounts.

• Note 4: The inter-company transactions below 1% of consolidated assets or revenue are not disclosed.

• Note 5: The outstanding endorsement/guarantee amount that Victory Navigation Inc., Everprime Shipping Limited, Ocean Wise Limited, Poseidon Marine Ltd. and Maxson Shipping Inc. jointly provided to Norley Corporation Inc. is US$ 27.5 million.

Table 5

Information on investees

Table 6

Sincere Navigation Corporation

For the year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount (Note 1)	Initial investment amount (Note 1)	Shares held as	at December 31,2022(Note 2)	at December 31,2022(Note 2)	Net profit (loss) of the investee for the year ended December 31, 2022 (Note 2)	Investment income (loss) recognised by the Company for the year ended December 31,2022	Footnote
				Balance as at December31,2022	Balance as at December31,2021	Numberofshares	Ownership (%)	Bookvalue
Sincere Navigation Corporation ˵ ˵ Norley Corporation Inc. ˵ ˵ ˵ ˵ ˵	Norley Corporation Inc. Heywood Limited SINCERE NAVIGATION CORPORATION (SINGAPORE) PTE. LTD. Kenmore Shipping Inc. Jetwall Co. Ltd. Victory Navigation Inc. Poseidon Marine Ltd Maxson Shipping Inc. Ocean Wise Limited	Republic of Liberia Marshall Islands Singapore Marshall Islands ˵ ˵ ˵ ˵ Republic of Liberia	Investment holdings ˵ Shipping Oil tanker Investment holdings ˵ Shipping ˵ ˵	$ 30,710 (USD 1,000 thousand) 30,710 (USD 1,000 thousand) 3,071 (USD 100 thousand) 1,416,038 (USD 46,110 thousand) 1,083,940 (USD 35,296 thousand) 169 (USD 6 thousand) 245,987 (USD 8,010 thousand) 322,455 (USD 10,500 thousand) 686,982 (USD 22,370 thousand)	$ 27,680 (USD 1,000 thousand) 27,680 (USD 1,000 thousand) - (USD -) 1,276,325 (USD 46,110 thousand) 746,696 (USD 26,976 thousand) 152 (USD 6 thousand) 221,717 (USD 8,010 thousand) 290,640 (USD 10,500 thousand) 619,201 (USD 22,370 thousand)	500 500 100,000 500 400 275 500 500 500	100% 100% 100% 100% 80% 55% 100% 100% 100%	12,410,836 $ 5,909,694 39,398 1,836,073 1,614,046 396,864 1,326,242 1,097,278 927,896	51,845 $ 262,880 35,532 58,095 60,863 72,155 169,692) ( 73,105 210,378) (	48,835 $ 262,880 35,249 - - - - - -	Subsidiary Subsidiary Subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary

Table 6, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount (Note 1)	Initial investment amount (Note 1)	Shares held as	at December 31,2022(Note 2)	at December 31,2022(Note 2)	Net profit (loss) of the investee for the year ended December 31, 2022 (Note 2)	Investment income (loss) recognised by the Company for the year ended December 31,2022	Footnote
				Balance as at December31,2022	Balance as at December31,2021	Numberofshares	Ownership (%)	Bookvalue
Norley Corporation Inc. ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ Jetwall Co. Ltd.	Pacifica Maritime Limited Sky Sea Maritime Limited Elroy Maritime Service Inc. Glory Selah Limited Steady Way Limited Clifford Navigation Corporation Brighton Shipping Inc. Rockwell Shipping Limited Howells Shipping Inc. Helmsman Navigation Co. Ltd. Keystone Shipping Co. Ltd. Carmel Splendor Limited Everwin Maritime Limited	Marshall Islands ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵ ˵	Oil tanker Investment holdings Maritime service Investment holdings Shipping ˵ ˵ ˵ ˵ ˵ ˵ ˵ Oil tanker	$ 2,542,481 (USD 82,790 thousand) 491,682 (USD 16,011 thousand) 11,670 (USD 380 thousand) 261,803 (USD 8,525 thousand) 791,090 (USD 25,760 thousand) 384,296 (USD 12,514 thousand) 618,666 (USD 20,145 thousand) 546,817 (USD 17,806 thousand) 697,208 (USD 22,703 thousand) 743,068 (USD 24,196 thousand) 70,209 (USD 2,286 thousand) 307 (USD 10 thousand) 1,354,925 (USD 44,120 thousand)	$ 1,461,227 (USD 52,790 thousand) 443,171 (USD 16,011 thousand) 5,536 (USD 200 thousand) 235,972 (USD 8,525 thousand) - (USD -) - (USD -) - (USD -) - (USD -) - (USD -) - (USD -) - (USD -) - (USD -) 933,370 (USD 33,720 thousand)	500 275 500 500 500 500 500 500 500 500 500 500 500	100% 55% 100% 55% 100% 100% 100% 100% 100% 100% 100% 100% 100%	2,834,723 $ 791,624 12,329 327,691 788,680 439,194 438,990 513,163 705,821 738,687 33,218 285 2,018,417	23,951 $ 126,234 3,359 74,106 2,338) ( 53,271 4,448 56,743 8,357 4,252) ( 35,894) ( 22) ( 60,849	- $ - - - - - - - - - - - -	Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Third-tier subsidiary

Table 6, Page 2

Investor	Investee	Location	Main business activities	Initial investment amount (Note 1)	Initial investment amount (Note 1)	Shares held as	at December 31,2022(Note 2)	at December 31,2022(Note 2)	Net profit (loss) of the investee for the year ended December 31, 2022 (Note 2)	Investment income (loss) recognised by the Company for the year ended December 31,2022	Footnote
				Balance as at December31,2022	Balance as at December31,2021	Numberofshares	Ownership (%)	Bookvalue
Victory Navigation Inc. Sky Sea Maritime Limited Elroy Maritime Service Inc. Glory Selah Limited Heywood Limited	Everprime Shipping Limited Ocean Grace Limited Oak Maritime (Canada) Inc. Bridge Poiema Limited Century Shipping Limited	Marshall Islands ˵ Canada Marshall Islands HongKong	Shipping ˵ Maritime serive Shipping Investment holdings	$ 307 (USD 10 thousand) 893,968 (USD 29,110 thousand) 3,947 (USD 128 thousand) 476,005 (USD 15,500 thousand) 15,355 (USD 500 thousand)	$ 277 (USD 10 thousand) 805,765 (USD 29,110 thousand) 3,558 (USD 128 thousand) 429,040 (USD 15,500 thousand) 13,840 (USD 500 thousand)	500 500 1,000 500 50,000	100% 100% 100% 100% 100%	718,041 $ 1,439,183 2,340 596,011 7,379	72,054 $ 125,751 2,013 74,204 1,824	- $ - - - -	Third-tier subsidiary Third-tier subsidiary Third-tier subsidiary Third-tier subsidiary Second-tier subsidiary

Note 1: The above balances of initial investments as at December 31, 2022 and 2021 were translated at the closing exchange rates at the balance sheet date. Note 2: The above carrying amounts of shares held as at December 31, 2022 and net profit (loss) of the investee for the year ended December 31, 2022 were translated at the closing exchange rates at the balance sheet and the average exchange rates for the year ended December 31, 2022, respectively.

Table 6, Page 3

Sincere Navigation Corporation

Information on investments in Mainland China

For the year ended December 31, 2022

Table 7 Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	Net income of investee for the year ended December 31,2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2022 (Note 2)	Expressed in thousands of NTD (Except as otherwise indicated) Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022 Footnote Book value of investments in Mainland China as of December 31,2022	Expressed in thousands of NTD (Except as otherwise indicated) Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022 Footnote Book value of investments in Mainland China as of December 31,2022	Expressed in thousands of NTD (Except as otherwise indicated) Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022 Footnote Book value of investments in Mainland China as of December 31,2022
					Remitted to Mainland China	Remitted back to Taiwan
Haihu Maritime Service (Shanghai) Co., Ltd.	Maritime service	$15,855 (USD 500 thousand)	2	$15,855 (USD 500 thousand)	- $	- $	$15,855 (USD500 thousand)	$1,824 (RMB 412 thousand)	100%	$1,824 (RMB 412 thousand)	$7,379 (RMB 1,673 thousand)	- $

Note 1: Investment methods are classified into the following three categories.

• (1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China. (The investee in the third area is Century Shipping Limited)

Note 2: Investment income (loss) recognised during the period was based on financial statements audited by the Company's CPA.

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Haihu Maritime Service (Shanghai) Co., Ltd.	$ 15,855	$ 95,130	$ 9,495,283

Table 7

Sincere Navigation Corporation Major shareholders information For the year ended December 31, 2022

Table 8

Number of major shareholders	Shares	Shares
	Name of shares held	Ownership (%)
CTBC BANK CO., LTD. IN CUSTODY FOR HO MAO INVESTMENT CORPORATION 58,060,800 9.91% Note 1: The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. The share capital which was recorded on the financial statements may be different from the actual number of shares in dematerialised form due to the difference in calculation basis. Note 2: If the aforementioned data contains shares which were kept at the trust by the shareholders, the data was disclosed as separate account of client reports which was set by the trustee. As for the shareholder who share equity as a insider whose shareholding ratio greater than 10% in accordance with Securities and Exchange Act, the shareholding ratio including the self-owned shares and trusted shares, at the same time, persons who have power to decide how to allocate the trust assets. For the information of reported share equity of insider, please refer to Market Observation Post System.

Table 8