U-MING - Interim / Quarterly Report 2020

U-Ming Marine Transport Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2020 and 2019

Note ： The translation version is intended for reference only. If any inconsistency between the Chinese and English versions, the Chinese version shall govern.

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 7) Financial assets at fair value through profit or loss - current (Notes 8 and 24) Financial assets at fair value through other comprehensive income - current (Notes 9 and 25) Financial assets at amortized cost - current (Note 25) Contract assets - current (Note 19) Trade receivables from unrelated parties (Note 10) Trade receivables from related parties (Notes 10 and 24) Other receivables (Note 24) Fuel inventory Other current assets (Note 24) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 9) Financial assets at amortized cost - non-current Investments accounted for using the equity method (Note 12) Property, plant and equipment (Notes 13, 25 and 26) Intangible assets Deferred tax assets Prepayments for equipment (Note 13) Refundable deposits (Notes 24 and 25) Long-term receivables - related parties (Note 24) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 15) Short-term bills payable (Notes 15 and 25) Financial liabilities at fair value through profit or loss - current (Notes 8 and 25) Trade payables (Note 24) Other payables (Note 16) Current tax liabilities Current portion of long-term borrowings (Notes 15 and 25) Other current liabilities (Note 24) Total current liabilities NON-CURRENT LIABILITIES Bank loans (Notes 15 and 25) Deferred tax liabilities Deferred revenue - non-current Net defined benefit liabilities - non-current Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 18) Common share capital Capital surplus Retained earnings Legal reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		September 30, 2020 Amount % $ 15,380,334 26 1,502,149 2 6,406,072 11 150,798 - 176,602 - 371,508 1 56,704 - 109,235 - 428,053 1 276,768 - 24,858,223 41 2,042,106 3 298,833 1 2,942,645 5 28,135,027 47 47,042 - 9,124 - 904,439 2 94,822 - 700,812 1 - - 35,174,850 59 $ 60,033,073 100 $ 5,533,000 9 7,215,805 12 353,980 1 207,082 - 935,252 2 47,142 - 3,078,647 5 216,308 - 17,587,216 29 19,127,732 32 174,407 1 120,537 - 146,662 - 19,569,338 33 37,156,554 62 8,450,557 14 115,163 - 6,876,575 11 8,339,437 14 15,216,012 25 (905,213) (1) 22,876,519 38 $ 60,033,073 100		December 31, 2019 Amount % $ 15,879,242 26 1,941,208 3 7,124,123 12 - - 224,736 - 195,226 - 107,888 - 236,807 1 561,531 1 218,067 - 26,488,828 43 2,544,561 4 192,182 - 2,913,190 5 27,933,249 45 58,799 - 11,703 - 1,265,124 2 125,303 - 726,038 1 - - 35,770,149 57 $ 62,258,977 100 $ 6,500,000 11 3,205,321 5 189,635 - 188,561 - 1,000,195 2 105,919 - 3,387,593 6 200,521 - 14,777,745 24 20,151,636 33 174,185 - 142,330 - 168,522 - 20,636,673 33 35,414,418 57 8,450,557 14 115,152 - 6,693,492 11 9,669,918 15 16,363,410 26 1,915,440 3 26,844,559 43 $ 62,258,977 100		September 30, 2019
						Amount % $ 18,837,763 29 1,875,049 3 6,911,299 11 - - 215,443 - 246,694 - 85,779 - 306,373 - 439,403 1 214,316 - 29,132,119 44 2,401,675 4 - - 2,853,393 4 29,293,659 45 33,722 - 12,246 - 1,116,728 2 122,838 - 804,047 1 10,349 - 36,648,657 56 $ 65,780,776 100 $ 7,922,000 12 4,448,705 7 247,614 - 163,895 - 1,037,172 2 118,380 - 4,069,026 6 132,265 - 18,139,057 27 19,830,127 30 175,273 - 153,695 - 179,244 1 20,338,339 31 38,477,396 58 8,450,557 13 115,152 - 6,693,492 10 9,033,182 14 15,726,674 24 3,010,997 5 27,303,380 42 $ 65,780,776 100

The accompanying notes are an integral part of the consolidated financial statements.

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of U.S. Dollars, Note 6)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 7) Financial assets at fair value through profit or loss - current (Notes 8 and 24) Financial assets at fair value through other comprehensive income - current (Notes 9 and 25) Financial assets at amortized cost - current (Note 25) Contract assets - current (Note 19) Trade receivables from unrelated parties (Note 10) Trade receivables from related parties (Notes 10 and 24) Other receivables (Note 24) Fuel inventory Other current assets (Note 24) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 9) Financial assets at amortized cost - non-current Investments accounted for using the equity method (Note 12) Property, plant and equipment (Notes 13, 25 and 26) Intangible assets Deferred tax assets Prepayments for equipment (Note 13) Refundable deposits (Notes 24 and 25) Long-term receivables - related parties (Note 24) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 15) Short-term bills payable (Notes 15 and 25) Financial liabilities at fair value through profit or loss - current (Notes 8 and 25) Trade payables (Note 24) Other payables (Note 16) Current tax liabilities Current portion of long-term borrowings (Notes 15 and 25) Other current liabilities (Note 24) Total current liabilities NON-CURRENT LIABILITIES Bank loans (Notes 15 and 25) Deferred tax liabilities Deferred revenue - non-current Net defined benefit liabilities - non-current Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 18) Common share capital Capital surplus Retained earnings Legal reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		September 30, 2020 Amount % $ 528,534 26 51,620 2 220,140 11 5,182 - 6,069 - 12,766 1 1,948 - 3,754 - 14,710 1 9,511 - 854,234 41 70,175 3 10,269 1 101,122 5 966,839 47 1,617 - 314 - 31,080 2 3,259 - 24,083 1 - - 1,208,758 59 $ 2,062,992 100 $ 190,138 9 247,966 12 12,164 1 7,116 - 32,139 2 1,620 - 105,796 5 7,433 - 604,372 29 657,310 32 5,994 1 4,142 - 5,040 - 672,486 33 1,276,858 62 290,397 14 3,957 - 236,308 11 286,579 14 522,887 25 (31,107) (1) 786,134 38 $ 2,062,992 100		December 31, 2019 Amount % $ 529,661 26 64,750 3 237,629 12 - - 7,496 - 6,512 - 3,599 - 7,899 1 18,730 1 7,275 - 883,551 43 84,875 4 6,410 - 97,171 5 931,729 45 1,961 - 390 - 42,199 2 4,180 - 24,217 1 - - 1,193,132 57 $ 2,076,683 100 $ 216,811 11 106,915 5 6,325 - 6,289 - 33,363 2 3,533 - 112,995 6 6,689 - 492,920 24 672,169 33 5,810 - 4,748 - 5,621 - 688,348 33 1,181,268 57 281,873 14 3,841 - 223,265 11 322,546 15 545,811 26 63,890 3 895,415 43 $ 2,076,683 100		September 30, 2019
						Amount % $ 606,887 29 60,407 3 222,658 11 - - 6,941 - 7,948 - 2,763 - 9,870 - 14,156 1 6,905 - 938,535 44 77,374 4 - - 91,926 4 943,739 45 1,086 - 395 - 35,977 2 3,957 - 25,904 1 333 - 1,180,691 56 $ 2,119,226 100 $ 255,219 12 143,322 7 7,977 - 5,280 - 33,414 2 3,814 - 131,090 6 4,261 - 584,377 27 638,857 30 5,647 - 4,951 - 5,775 1 655,230 31 1,239,607 58 272,247 13 3,710 - 215,641 10 291,017 14 506,658 24 97,004 5 879,619 42 $ 2,119,226 100

The accompanying notes are an integral part of the consolidated financial statements.

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE Freight revenue (Notes 19 and 24) Other operating revenue (Note 20) Total operating revenue OPERATING COSTS Freight cost (Notes 20 and 24) GROSS PROFIT OPERATING EXPENSES (Notes 20 and 24) PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Note 24) Finance costs (Note 20) Share of profit or loss of associates and joint ventures (Note 12) Interest income Dividend income Gain on disposal of property, plant and equipment Net gain on sale of investment Net (loss) gain on foreign currency exchange (Note 28) Net gain (loss) on financial assets and liabilities at fair value through profit or loss Other losses Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX (BENEFIT) EXPENSE (Note 21) NET PROFIT FOR THE PERIOD		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2020		2019		2020		2019
		Amount % $ 2,349,949 90 247,382 10 2,597,331 100 2,079,600 80 517,731 20 117,116 4 400,615 16 5,547 - (88,088 ) (3 ) 34,679 1 49,641 2 214,983 8 - - 6,009 - (34,484) (1) 153,070 6 (1,347) - 340,010 13 740,625 29 (2,421) - 743,046 29		Amount % $ 3,083,213 94 186,140 6 3,269,353 100 2,398,836 73 870,517 27 120,111 4 750,406 23 4,737 - (152,113 ) (5 ) 45,896 2 149,761 5 99,041 3 28,222 1 6,364 - 26,636 1 (97,826 ) (3 ) (237) - 110,481 4 860,887 27 126 - 860,761 27		Amount % $ 5,833,710 95 282,642 5 6,116,352 100 5,570,550 91 545,802 9 323,326 5 222,476 4 18,777 - (322,216 ) (5) 123,040 2 234,092 4 216,538 4 - - 18,050 - (34,476) (1) (56,344 ) (1) (5,905) - 191,556 3 414,032 7 (45,304) - 459,336 7		Amount % $ 7,272,669 97 245,554 3 7,518,223 100 6,226,964 83 1,291,259 17 298,382 4 992,877 13 14,409 - (481,650 ) (6 ) 46,260 1 464,410 6 101,736 1 52,558 1 18,799 - 33,296 1 (118,960 ) (2) (4,109) - 126,749 2 1,119,626 15 131,080 2 988,546 13 (Continued)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Nine Months	Ended September 30
2020	2019	2020	2019
Amount % $ (415,904) (16) (3,425) - (686,887) (27 ) (34,524 ) (1) (1,140,740) (44) $ (397,694) (15) $ 0.88 $ 0.88	Amount % (587,133) (18) (28,677) (1) (27,832) (1) (189) - (643,831) (20) $ 216,930 7 $ 1.02 $ 1.02	Amount % $ (1,625,453 ) (27 ) (965) - (1,135,305 ) (18 ) (59,876) (1) (2,821,599) (46) $ (2,362,263) (39) $ 0.54 $ 0.54	Amount % 1,743,835 23 17,040 - 428,019 6 21,895 1 2,210,789 30 $ 3,199,335 43 $ 1.17 $ 1.17

$	$		$

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of U.S. Dollars, Except Earnings Per Share, Note 6)

OPERATING REVENUE Freight revenue (Notes 19 and 24) Other operating revenue (Note 20) Total operating revenue OPERATING COSTS Freight cost (Notes 20 and 24) GROSS PROFIT OPERATING EXPENSES (Notes 20 and 24) PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Note 24) Finance costs (Note 20) Share of profit or loss of associates and joint ventures (Note 12) Interest income Dividend income Gain on disposal of property, plant and equipment Net gain on sale of investment Net (loss) gain on foreign currency exchange (Note 28) Net gain (loss) on financial assets and liabilities at fair value through profit or loss Other losses Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX (BENEFIT) EXPENSE (Note 21) NET PROFIT FOR THE PERIOD		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2020		2019		2020		2019
		Amount % $ 80,754 90 8,501 10 89,255 100 71,464 80 17,791 20 4,024 4 13,767 16 191 - (3,027 ) (3 ) 1,191 1 1,706 2 7,388 8 - - 206 - (1,185) (1) 5,260 6 (46) - 11,684 13 25,451 29 (83) - 25,534 29		Amount % $ 99,330 94 5,997 6 105,327 100 77,282 73 28,045 27 3,870 4 24,175 23 153 - (4,901 ) (5 ) 1,479 2 4,825 5 3,191 3 909 1 205 - 858 1 (3,152) (3 ) (8) - 3,559 4 27,734 27 4 - 27,730 27		Amount % $ 200,471 95 9,713 5 210,184 100 191,428 91 18,756 9 11,111 5 7,645 4 645 - (11,072) (5) 4,228 2 8,044 4 7,441 4 - - 620 - (1,184) (1) (1,936) (1) (203) - 6,583 3 14,228 7 (1,557) - 15,785 7		Amount % $ 234,299 97 7,911 3 242,210 100 200,611 83 41,599 17 9,613 4 31,986 13 464 - (15,517 ) (6 ) 1,490 1 14,962 6 3,277 1 1,693 1 606 - 1,073 1 (3,832) (2) (132) - 4,084 2 36,070 15 4,223 2 31,847 13 (Continued)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of U.S. Dollars, Except Earnings Per Share, Note 6)

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Nine Months	Ended September 30
2020	2019	2020	2019
Amount % $ (14,292) (16) (118) - (23,604) (27 ) (1,186) (1) (39,200) (44) $ (13,666) (15) $ 0.030 $ 0.030	Amount % $ (18,915) (18) (924) (1) (897) (1) (6) - (20,742) (20) $ 6,988 6 $ 0.033 $ 0.033	Amount % $ (55,857) (27 ) (33) - (39,014) (18 ) (2,058) (1) (96,962) (46) $ (81,177) (39) $ 0.019 $ 0.019	Amount % $ 56,180 23 550 - 13,789 6 705 1 71,224 30 $ 103,071 43 $ 0.038 $ 0.038

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Common Share Capital Capital Surplus BALANCE AT JANUARY 1, 2019 $ 8,450,557 $ 115,123 Appropriation of 2018 earnings Legal reserve - - Cash dividends distributed by the Company - - Reversal of special reserve - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - 29 Net profit for the nine months ended September 30, 2019 - - Other comprehensive income for the nine months ended September 30, 2019, net of income tax - - Total comprehensive income for the nine months ended September 30, 2019 - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Changes from investments in associates and joint ventures accounted for using the equity method - - BALANCE AT SEPTEMBER 30, 2019 $ 8,450,557 $ 115,152 BALANCE AT JANUARY 1, 2020 $ 8,450,557 $ 115,152 Appropriation of 2019 earnings Legal reserve - - Cash dividends distributed by the Company - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - 14 Net profit for the nine months ended September 30, 2020 - - Other comprehensive income (loss) for the nine months ended September 30, 2020, net of income tax - - Total comprehensive income (loss) for the nine months ended September 30, 2020 - - Cash dividends claimed after over prescription by shareholders - (3 ) Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Changes from investments in associates and joint ventures accounted for using the equity method - - BALANCE AT SEPTEMBER 30, 2020 $ 8,450,557 $ 115,163		Retained Earnings Legal Reserve Special Reserve Unappropriated Earnings $ 6,526,608 $ 2,000,954 $ 7,526,115 166,884 - (166,884 ) - - (1,521,100 ) - (2,000,954 ) 2,000,954 - - - - - 988,546 - - 3,098 - - 991,644 - - 203,950 - - (1,078 ) - - (419) $ 6,693,492 $ - $ 9,033,182 $ 6,693,492 $ - $ 9,669,918 183,083 - (183,083 ) - - (1,605,606 ) - - - - - 459,336 - - (1,056) - - 458,280 - - - - - 110 - - (182) $ 6,876,575 $ - $ 8,339,437	Other Equity	Total $ 1,006,178 - - - - - 2,207,691 2,207,691 (203,950 ) 1,078 - $ 3,010,997 $ 1,915,440 - - - - (2,820,543) (2,820,543) - (110 ) - $ (905,213)	Total Equity $ 25,625,535 - (1,521,100 ) - 29 988,546 2,210,789 3,199,335 - - (419) $ 27,303,380 $ 26,844,559 - (1,605,606 ) 14 459,336 (2,821,599) (2,362,263) (3 ) - (182) $ 22,876,519
			Exchange Differences on Translating Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value the Financial through Other Gain (Loss) on Statements of Foreign Operations Comprehensive Income Hedging Instruments Gain on Property Revaluation $ (1,312,549 ) $ 2,318,592 $ 2 $ 133 - - - - - - - - - - - - - - - - - - - - 449,914 1,757,777 - - 449,914 1,757,777 - - - (203,950 ) - - - 1,078 - - - - - - $ (862,635 ) $ 3,873,497 $ 2 $ 133 $ (2,330,970 ) $ 4,246,275 $ 2 $ 133 - - - - - - - - - - - - - - - - (1,195,180) (1,625,374) (1) 12 (1,195,180) (1,625,374) (1) 12 - - - - - (110 ) - - - - - - $ (3,526,150) $ 2,620,791 $ 1 $ 145

The accompanying notes are an integral part of the consolidated financial statements.

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of U.S. Dollars, Note 6)

Common Share Capital Capital Surplus BALANCE AT JANUARY 1, 2019 $ 275,128 $ 3,748 Appropriation of 2018 earnings Legal reserve - - Cash dividends distributed by the Company - - Reversal of special reserve - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - 1 Net profit for the nine months ended September 30, 2019 - - Other comprehensive income for the nine months ended September 30, 2019, net of income tax - - Total comprehensive income for the nine months ended September 30, 2019 - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Changes from investments in associates and joint ventures accounted for using the equity method - - Changes in translation adjustments (2,881) (39) BALANCE AT SEPTEMBER 30, 2019 $ 272,247 $ 3,710 BALANCE AT JANUARY 1, 2020 $ 281,873 $ 3,841 Appropriation of 2019 earnings Legal reserve - - Cash dividends distributed by the Company - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - - Net profit for the nine months ended September 30, 2020 - - Other comprehensive income (loss) for the nine months ended September 30, 2020, net of income tax - - Total comprehensive income (loss) for the nine months ended September 30, 2020 - - Cash dividends claimed after over prescription by shareholders - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Changes from investments in associates and joint ventures accounted for using the equity method - - Changes in translation adjustments 8,524 116 BALANCE AT SEPTEMBER 30, 2020 $ 290,397 $ 3,957	Retained Earnings Legal Reserve Special Reserve Unappropriated Earnings $ 212,489 $ 65,146 $ 245,031 5,376 - (5,376 ) - - (49,005 ) - (64,464 ) 64,464 - - - - - 31,847 - - 100 - - 31,947 - - 6,571 - - (35 ) - - (13) (2,224) (682) (2,567) $ 215,641 $ - $ 291,017 $ 223,265 $ - $ 322,546 6,292 - (6,292) - - (55,175 ) - - - - - 15,785 - - (36) - - 15,749 - - - - - 4 - - (6 ) 6,751 - 9,753 $ 236,308 $ - $ 286,579	Other Equity	Total Total Equity $ 32,758 $ 834,300 - - - (49,005 ) - - - 1 - 31,847 71,124 71,224 71,124 103,071 (6,571 ) - 35 - - (13) (342) (8,735) $ 97,004 $ 879,619 $ 63,890 $ 895,415 - - - (55,175 ) - - - 15,785 (96,926) (96,962) (96,926) (81,177) - - (4 ) - - (6 ) 1,933 27,077 $ (31,107) $ 786,134
		Exchange Differences on Translating Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value the Financial through Other Gain (Loss) on Statements of Foreign Operations Comprehensive Income Hedging Instruments Gain on Property Revaluation $ (42,733 ) $ 75,487 $ - $ 4 - - - - - - - - - - - - - - - - - - - - 14,495 56,629 - - 14,495 56,629 - - - (6,571) - - - 35 - - - - - - 447 (789) - - $ (27,791) $ 124,791 $ - $ 4 $ (77,751 ) $ 141,637 $ - $ 4 - - - - - - - - - - - - - - - - (41,071) (55,855) - - (41,071) (55,855 ) - - - - - - - (4 ) - - - - - - (2,352) 4,284 - 1 $ (121,174) $ 90,062 $ - $ 5

The accompanying notes are an integral part of the consolidated financial statements.

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Net loss on financial assets and liabilities at fair value through profit or loss Finance costs Interest income Dividend income Share of the profit of associates and joint ventures Gain on disposal of property, plant and equipment, net Net (gain) loss on foreign currency exchange Other non-cash items Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss Contract assets Trade receivables Other receivables Fuel inventory Other current assets Trade payables Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income Purchase of financial assets at amortized cost Purchase of property, plant and equipment		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2020 $ 414,032 1,761,216 11,964 56,371 322,216 (234,092) (499,207) (123,040) - 15,083 (18,050) 479,234 48,134 (125,081) 5,286 133,478 (58,750) 18,521 (48,805) 15,787 (21,860) 2,152,437 356,378 499,207 (341,831) (10,623) 2,655,568 (413,616) - (269,573) (1,844,647)	2019 $ 1,119,626 1,807,350 6,961 118,960 481,650 (464,410) (347,290) (46,260) (52,558) (17,125) (18,799) 917,376 (26,091) 104,658 8,864 (29,089) 18,439 58,957 (176,231) (83,704) (19,395) 3,361,889 335,002 347,290 (486,674) (31,354) 3,526,153 (10,000) 284,637 - (1,193,957) (Continued)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Payments for intangible assets Increase in prepayments for equipment Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Repayments of) proceeds from short-term borrowings Proceeds from (repayments of) short-term bills payable Proceeds from long-term borrowings Repayments of long-term borrowings Dividends paid to owners of the Company Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2020 $ - 30,261 - (605,023) 24,748 (3,077,850) (967,000) 4,013,990 3,387,267 (4,450,914) (1,605,609) 377,734 (454,360) (498,908) 15,879,242 $ 15,380,334	2019 $ 424,092 (14,681) (1,320) (404,298) 74,564 (840,963) 1,307,000 (300,000) 5,998,637 (6,190,577) (1,521,100) (706,040) 173,697 2,152,847 16,684,916 $ 18,837,763

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

10 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of U.S. Dollars, Note 6)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Net loss on financial assets and liabilities at fair value through profit or loss Finance costs Interest income Dividend income Share of the profit of associates and joint ventures Gain on disposal of property, plant and equipment, net Net (gain) loss on foreign currency exchange Other non-cash items Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss Contract assets Trade receivables Other receivables Fuel inventory Other current assets Trade payables Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income Purchase of financial assets at amortized cost Purchase of property, plant and equipment		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2020 $ 14,228 60,523 411 1,937 11,073 (8,044) (17,155) (4,228) - 518 (620) 16,468 1,654 (4,298) 182 4,587 (2,019) 636 (1,677) 542 (751) 73,967 12,247 17,155 (11,747) (365) 91,257 (14,214) - (9,264) (63,390)	2019 $ 36,070 58,226 224 3,832 15,517 (14,962) (11,188) (1,490) (1,693) (552) (606) 29,555 (840) 3,372 286 (937) 594 1,899 (5,677) (2,697) (625) 108,308 10,793 11,188 (15,679) (1,010) 113,600 (322) 9,170 - (38,465) (Continued)

11 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of U.S. Dollars, Note 6)

Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Payments for intangible assets Increase in prepayments for equipment Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Repayments of) proceeds from short-term borrowings Proceeds from (repayments of) short-term bills payable Proceeds from long-term borrowings Repayments of long-term borrowings Dividends paid to owners of the Company Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2020 $ - 1,040 - (20,791) 851 (105,768) (33,230) 137,937 116,401 (152,952) (55,175) 12,981 403 (1,127) 529,661 $ 528,534	2019 $ 13,663 (473) (43) (13,025) 2,402 (27,093) 42,107 (9,665) 193,255 (199,439) (49,004) (22,746) (91) 63,670 543,217 $ 606,887

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (In Thousands of New Taiwan Dollars and U.S. Dollars, Unless Stated Otherwise)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

U-Ming Marine Transport Corporation (the “Company”) was incorporated in the Republic of China (ROC) in August 1968. The Company and its subsidiaries (collectively referred to as the “Group”) not only own and manage ships that transport dry bulk cargoes, specializing in cement, coal, iron ore and grain. The Company’s shares have been listed on the Taiwan Stock Exchange since December 8, 1990. The consolidated financial statements of the Group are presented in the Company’s financial currency, the New Taiwan dollars and translated to U.S. dollars on the basis stated in Note 6 for the convenience of readers.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on November 10, 2020.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Group’s accounting policies.

b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9” Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform - Phase 2” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 16 “Property, Plant and Equipment-Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts-Cost of Fulfilling a Contract”	Effective Date Announced by IASB (Note 1)
	January 1, 2022 (Note 2) January 1, 2022 (Note 3) Effective immediately upon promulgation by the IASB January 1, 2021 To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 (Note 4) January 1, 2022 (Note 5)

New IFRSs
“Annual Improvements to IFRS Standards 2018-2020”

Amendments to IFRS 3 “Reference to the Conceptual Framework”

Amendments to IFRS 4 “Extension of the Temporary Exemption from
Applying IFRS 9”

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
“Interest Rate Benchmark Reform - Phase 2”

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

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

Amendments to IAS 16 “Property, Plant and Equipment-Proceeds
before Intended Use”

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

Effective Date
Announced by IASB (Note 1)

January 1, 2022 (Note 2)
January 1, 2022 (Note 3)
Effective immediately upon
promulgation by the IASB
January 1, 2021
To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2022 (Note 4)
January 1, 2022 (Note 5)

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Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments to IFRS 9 are applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” are applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” are applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2022.
Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of above standards and interpretations will have on the Group’s financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of consolidation

Refer to Note 11 and Tables 7 and 8 for the detailed information of subsidiaries (including the percentage of ownership and main business).

c. Other significant accounting policies

Except for the following descriptions, please refer to the summary of other significant accounting policies in consolidated financial statements for the year ended December 31, 2019.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

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2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The same critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2019.

The Group considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

6. TRANSLATION INTO U.S. DOLLARS

The consolidated financial statements are originally stated in New Taiwan dollars. The translations of New Taiwan dollars into U.S. dollars are included solely for the convenience of the reader, using the exchange rate of NT$29.1 to US$1.00, NT$29.98 to US$1.00 and NT$31.04 to US$1.00 published by the Bank of Taiwan as of September 30, 2020, December 31, 2019 and September 30, 2019, respectively. The convenience translations should not be construed as representations that the New Taiwan dollar amounts have been, could have been or could in the future be, converted into U.S. dollars at these rates or any other exchange rate.

7. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents Time deposits Commercial papers		September 30, 2020 NT$ US$ (Note 6) $ 426 $ 15 1,832,518 62,973 13,547,390 465,546 - - $ 15,380,334 $ 528,534		December 31, 2019 NT$ US$ (Note 6) $ 263 $ 9 472,713 15,768 15,386,292 513,218 19,974 666 $ 15,879,242 $ 529,661		September 30, 2019
						NT$ US$ (Note 6) $ 282 $ 9 553,554 17,834 18,251,960 588,014 31,967 1,030 $ 18,837,763 $ 606,887

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8. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Cross-currency swap contracts (a) Interest rate swap contracts (b) Non-derivative financial assets Mutual funds Domestic listed shares Financial liabilities held for trading Derivative financial liabilities (not under hedge accounting) Cross-currency swap contracts (a) Interest rate swap contracts (b) Financial liabilities at FVTPL - current		September 30, 2020 NT$ US$ (Note 6) $ 11,537 $ 396 - - 1,467,110 50,416 23,502 808 $ 1,502,149 $ 51,620 $ 31,740 $ 1,090 322,240 11,074 $ 353,980 $ 12,164		December 31, 2019 NT$ US$ (Note 6) $ 6,309 $ 210 8,245 275 1,926,654 64,265 - - $ 1,941,208 $ 64,750 $ 59,992 $ 2,001 129,643 4,324 $ 189,635 $ 6,325		September 30, 2019
						NT$ US$ (Note 6) $ - $ - 9,600 309 1,865,449 60,098 - - $ 1,875,049 $ 60,407 $ 86,061 $ 2,772 161,553 5,205 $ 247,614 $ 7,977

a. At the end of the reporting period, outstanding cross-currency swap contracts not under hedge accounting were as follows:

Contract Amount Range of Interest Range of Interest (In Thousands) Maturity Date Rates Paid Rates Received September 30, 2020 USD7,475/AUD9,005 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%:1.23% plus 1%:1.09% USD11,900/AUD17,322 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%:1.32% plus 1.05%:1.15% December 31, 2019 USD12,458/AUD15,009 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%:2.91% plus 1%:1.91% USD15,300/AUD22,271 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%:3.02% plus 1.05%:1.95%

September 30, 2019 USD12,458/AUD15,009 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%: 3.16% plus 1%: 1.92% USD15,300/AUD22,271 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%: 3.33% plus 1.05%: 2.16%

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The Group entered into cross-currency swap contracts to manage exposures to exchange rate and interest rate fluctuations of U.S. dollar and Australian dollar denominated loans. The Group did not apply hedge accounting.

b. At the end of the reporting period, outstanding interest rate swap contracts were as follows:

Contract Amount		Range of Interest	Range of Interest Rates
(In Thousands)	Maturity Date	Rates Paid	Received
September 30, 2020
USD3,780	2022.07.20	1.36%	3-month LIBOR: 0.2718%
USD3,640	2022.09.20	1.43%	3-month LIBOR: 0.2274%
USD8,094	2022.10.25	1.18%	3-month LIBOR: 0.2445%
USD9,923	2023.04.22	1.27%	3-month LIBOR: 0.2578%
USD5,670	2023.06.05	1.90%	3-month LIBOR: 0.2511%
USD5,670	2023.08.30	1.85%	3-month LIBOR: 0.2460%
USD13,475	2023.10.30	1.89%	3-month LIBOR: 0.2683%
USD14,578	2024.01.16	1.68%	3-month LIBOR: 0.2663%
USD50,295	2027.08.25	2.865%	3-month LIBOR: 0.2500%
USD50,295	2028.01.10	2.875%	3-month LIBOR: Not effective yet
USD1,291	2021.03.19	1.115%	3-month LIBOR: 0.2274%
December 31, 2019
USD5,670	2022.07.20	1.36%	3-month LIBOR: 1.9659%
USD5,460	2022.09.20	1.43%	3-month LIBOR: 1.9080%
USD9,713	2022.10.25	1.18%	3-month LIBOR: 1.9396%
USD11,576	2023.04.22	1.27%	3-month LIBOR: 1.9533%
USD6,615	2023.06.05	1.90%	3-month LIBOR: 1.9055%
USD7,560	2023.08.30	1.85%	3-month LIBOR: 1.9138%
USD15,400	2023.10.30	1.89%	3-month LIBOR: 1.9355%
USD18,743	2024.01.16	1.68%	3-month LIBOR: 2.0009%
USD50,295	2027.08.30	2.865%	3-month LIBOR: Not effective yet
USD50,295	2027.11.30	2.875%	3-month LIBOR: Not effective yet
USD3,872	2021.03.19	1.115%	3-month LIBOR: 1.9080%
September 30, 2019
USD 5,670	2022.07.20	1.36%	3-month LIBOR: 2.2776%
USD 5,460	2022.09.20	1.43%	3-month LIBOR: 2.1559%
USD 11,331	2022.10.25	1.18%	3-month LIBOR: 2.2755%
USD 13,230	2023.04.22	1.27%	3-month LIBOR: 2.2776%
USD 7,560	2023.06.05	1.90%	3-month LIBOR: 2.1376%
USD 7,560	2023.08.30	1.85%	3-month LIBOR: 2.1241%
USD 17,325	2023.10.30	1.89%	3-month LIBOR: 2.2658%
USD 18,743	2024.01.16	1.68%	3-month LIBOR: 2.3034%
USD 50,295	2027.06.30	2.865%	3-month LIBOR: not effective yet
USD 50,295	2027.09.30	2.875%	3-month LIBOR: not effective yet
USD 3,872	2021.03.19	1.115%	3-month LIBOR: 2.1559%

The Group entered into interest rate swap contracts to exchange floating interest rate with fixed interest rate to manage the risk of interest rate fluctuations from the outstanding loans. The Group did not apply hedge accounting.

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9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Equity Instruments Current Domestic listed shares Foreign listed shares Non-current Domestic unlisted shares		September 30, 2020 NT$ US$ (Note 6) $ 5,965,795 $ 205,010 440,277 15,130 $ 6,406,072 $ 220,140 $ 2,042,106 $ 70,175		December 31, 2019 NT$ US$ (Note 6) $ 6,402,641 $ 213,564 721,482 24,065 $ 7,124,123 $ 237,629 $ 2,544,561 $ 84,875		September 30, 2019	September 30, 2019
		NT$ U $ 5,965,795 440,277 $ 6,406,072 $ 2,042,106				NT$ U $ 6,308,472 602,827 $ 6,911,299 $ 2,401,675	S$ (Note 6) $ 203,237 19,421 $ 222,658 $ 77,374

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

Refer to Table 3 for detailed information relating to the Group’s investments.

Refer to Note 25 for information relating to investments in equity instruments at FVTOCI pledged as security.

10. TRADE RECEIVABLES

Trade receivables At amortized cost Non-related party Less: Allowance for impairment loss Related party		September 30, 2020 NT$ US$ (Note 6) $ 372,081 $ 12,786 (573) (20) $ 371,508 $ 12,766 $ 56,704 $ 1,948		December 31, 2019 NT$ US$ (Note 6) $ 195,816 $ 6,532 (590) (20) $ 195,226 $ 6,512 $ 107,888 $ 3,599		September 30, 2019
						NT$ US$ (Note 6) $ 247,396 $ 7,970 (702) (22) $ 246,694 $ 7,948 $ 85,779 $ 2,763

Trade Receivables

The Group receives freight charges that amount to 90% to 95% of the total contract price within 3 to 8 days from completion of loading, and settles demurrage with customers upon completion of each voyage period. The outstanding period of demurrage depends on progress of settlement, normally longer than the outstanding period of freight charge.

The Group uses publicly available financial information or its own trading records to continuously assess the credit ratings of its counterparties, and credit exposure is controlled through credit limits of counterparties. In addition, the Group reviews the recoverable amount of each individual trade receivable at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts.

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The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation, or when the trade receivables are over 365 days past due, whichever occurs earlier. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Group’s provision matrix.

September 30, 2020

New Taiwan dollars

Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost U.S. dollars (Note 6) Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost December 31, 2019 New Taiwan dollars Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost U.S. dollars (Note 6) Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	0 to 30 Days $ 262,494 - $ 262,494 0 to 30 Days $ 9,020 - $ 9,020 0 to 30 Days $ 231,219 - $ 231,219 0 to 30 Days $ 7,712 - $ 7,712	31 to 90 Days $ 97,373 - $ 97,373 31 to 90 Days $ 3,346 - $ 3,346 31 to 90 Days $ 46,722 - $ 46,722 31 to 90 Days $ 1,558 - $ 1,558	91 to 180 Days $ 52,557 - $ 52,557 91 to 180 Days $ 1,806 - $ 1,806 91 to 180 Days $ 21,273 - $ 21,273 91 to 180 Days $ 710 - $ 710	181 to 365 Days $ 2,786 - $ 2,786 181 to 365 Days $ 96 - $ 96 181 to 365 Days $ 911 - $ 911 181 to 365 Days $ 31 - $ 31	Over 365 Days $ 13,575 (573) $ 13,002 Over 365 Days $ 466 (20) $ 446 Over 365 Days $ 3,579 (590) $ 2,989 Over 365 Days $ 120 (20) $ 100	Total $ 428,785 (573) $ 428,212 Total $ 14,734 (20) $ 14,714 Total $ 303,704 (590) $ 303,114 Total $ 10,131 (20) $ 10,111

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September 30, 2019

New Taiwan dollars

Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost U.S. dollars (Note 6) Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	0 to 30 Days $ 201,970 - $ 201,970 0 to 30 Days $ 6,507 - $ 6,507	31 to 90 Days $ 105,293 - $ 105,293 31 to 90 Days $ 3,392 - $ 3,392	91 to 180 Days $ 21,463 - $ 21,463 91 to 180 Days $ 691 - $ 691	181 to 365 Days $ 4,449 (702) $ 3,747 181 to 365 Days $ 143 (22) $ 121	Over 365 Days $ - - $ - Over 365 Days $ - - $ -	Total $ 333,175 (702) $ 332,473 Total $ 10,733 (22) $ 10,711

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Foreign exchange gains and losses Balance at September 30	For the Nine Months Ended September 30, 2020 NT$ US$ (Note 6) $ 590 $ 23 (17) (3) $ 573 $ 20	For the Nine Months Ended September 30, 2019	For the Nine Months Ended September 30, 2019
			NT$ US$ (Note 6) $ 694 $ 23 8 (1) $ 702 $ 22

11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Investor
Subsidiary
Nature of
Business
The Company
U-Ming Marine Transport (Singapore)
Private Limited (U-Ming Singapore)
Transport
U-Ming Marine Transport (Hong
Kong) Ltd. (U-Ming Hong Kong)
Transport
Yue-Li Investment Corporation
(Yue-Li)
Investment
Yue-Tung Investment Corporation
(Yue-Tung)
Investment
U-Ming Singapore
Falcon Investment Private Limited
(Falcon)
Investment
Eagle Investment Private Limited
(Eagle)
Transport
Yue-Li Investment Corporation
(Yue-Li)
Investment
Yue-Tung Investment Corporation
(Yue-Tung)
Investment
U-Ming Hong Kong Overseas Shipping Pte. Ltd. (OSPL)
Transport
U-Ming Marine (Xiamen) International
Ship Management Co., Ltd.
(U-Ming Xiamen)
Ship service

% of Ownership
September
30,
2020
December 31,
2019
September
30,
2019
Remark
100
100
100
-
100
100
100
Note 2
68
68
68
Note 1
74
74
74
Note 1
100
100
100
Note 1
100
100
100
Note 1
32
32
32
Note 1
26
26
26
Note 1
100
100
100
Note 1
100
100
100
Note 1

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Note 1: Those companies were immaterial subsidiaries, their financial statements have not been reviewed.
Note 2: U-Ming Hong Kong’s financial statements have been reviewed though U-Ming Hong Kong have been recognized as an immaterial subsidiary.
b. Subsidiaries excluded from the consolidated financial statements: None.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Associates that are not individually material		September 30, 2020 NT$ US$ (Note 6) $ 2,942,645 $ 101,122		December 31, 2019 NT$ US$ (Note 6) $ 2,913,190 $ 97,171		September 30, 2019
						NT$ US$ (Note 6) $ 2,853,393 $ 91,926

The Group’s equities in certain associates were less than 20%, but the equity method was used because of the Group’s significant influence on them. The Group holds 50% of the issued share capital of some associates, but classified them as the Group’s associates because the Group neither participated in operations nor had control over them.

The Group’s share of losses of an associate is limited to its interest in that associate which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate.

The Group and other companies jointly invested in and established Drive Catalyst SPC SP Tranche Three in 2019.

Investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.

13. PROPERTY, PLANT AND EQUIPMENT

New Taiwan dollars Cost Balance at January 1, 2019 Additions Disposals Reclassified from prepayment for equipment Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2019 Accumulated depreciation and impairment Balance at January 1, 2019 Depreciation Disposals Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2019 Carrying amounts at September 30, 2019	Land Transportation $ 1,092 $ 42,831,589 - 1,192,964 - (1,388,245) - 25,317 - (162,746) - 421,695 $ 1,092 $ 42,920,574 $ - $ 12,921,555 - 1,800,928 - (1,016,711) - (162,746) - 113,968 $ - $ 13,656,994 $ 1,092 $ 29,263,580	Miscellaneous $ 78,332 993 - 6,314 - (93) $ 85,546 $ 50,117 6,422 - - 20 $ 56,559 $ 28,987	Total $ 42,911,013 1,193,957 (1,388,245) 31,631 (162,746) 421,602 $ 43,007,212 $ 12,971,672 1,807,350 (1,016,711) (162,746) 113,988 $ 13,713,553 $ 29,293,659 (Continued)

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Cost Balance at January 1, 2020 Additions Reclassified from prepayment for equipment Derecognition by replacement Effects of foreign currency exchange differences Balance at September 30, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation Derecognition by replacement Effects of foreign currency exchange differences Balance at September 30, 2020 Carrying amounts at December 31, 2019 Carrying amounts at September 30, 2020 U.S. dollars (Note 6) Cost Balance at January 1, 2019 Additions Disposals Reclassified from prepayment for equipment Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2019 Accumulated depreciation and impairment Balance at January 1, 2019 Depreciation Disposals Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2019 Carrying amounts at September 30, 2019 Cost Balance at January 1, 2020 Additions Reclassified from prepayment for equipment Derecognition by replacement Effects of foreign currency exchange differences Balance at September 30, 2020	Land Transportation $ 1,092 $ 41,682,226 - 1,844,039 - 873,311 - (321,428) - (1,194,157) $ 1,092 $ 42,883,991 $ - $ 13,778,426 - 1,741,484 - (321,428) - (375,690) $ - $ 14,822,792 $ 1,092 $ 27,903,800 $ 1,092 $ 28,061,199 $ 36 $ 1,394,484 - 38,433 - (44,724) - 816 - (5,243) (1) (1,016) $ 35 $ 1,382,750 $ - $ 420,692 - 58,020 - (32,755) - (5,243) - (734) $ - $ 439,980 $ 35 $ 942,770 $ 36 $ 1,390,334 - 63,369 - 30,011 - (11,046) 1 1,008 $ 37 $ 1,473,676	Miscellaneous $ 86,550 608 63,771 - (715) $ 148,190 $ 58,193 19,732 - (447) $ 77,478 $ 28,357 $ 72,736 $ 2,551 32 - 203 - (30) $ 2,756 $ 1,632 207 - - (17) $ 1,822 $ 934 $ 2,887 21 2,191 - 62 $ 5,161	Total $ 41,769,868 1,844,647 937,082 (321,428) (1,194,872) $ 43,035,297 $ 13,836,619 1,761,216 (321,428) (376,137) $ 14,900,270 $ 27,933,249 $ 28,135,027 $ 1,397,071 38,465 (44,724) 1,019 (5,243) (1,047) $ 1,385,541 $ 422,324 58,227 (32,755) (5,243) (751) $ 441,802 $ 943,739 $ 1,393,257 63,390 32,202 (11,046) 1,071 $ 1,478,874 (Continued)

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Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation Derecognition by replacement Effects of foreign currency exchange differences Balance at September 30, 2020 Carrying amounts at December 31, 2019 Carrying amounts at September 30, 2020	Land Transportation $ - $ 459,587 - 59,845 - (11,046) - 988 $ - $ 509,374 $ 36 $ 930,747 $ 37 $ 964,302	Miscellaneous $ 1,941 678 - 42 $ 2,661 $ 946 $ 2,500	Total $ 461,528 60,523 (11,046) 1,030 $ 512,035 $ 931,729 $ 966,839 (Concluded)

No impairment assessment was performed in the nine months ended September 30, 2020 and 2019 as there was no material indication of impairment.

The transportation equipment are depreciated on a straight-line basis, and the miscellaneous assets are depreciated on a fixed-percentage-on-declining-balance method over their estimated useful lives as follows:

Transportation equipment 1-18 years Miscellaneous 1-10 years

Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 25.

The prepayments for equipment are for the transportation carriers under construction, which will be transferred to property, plant and equipment once the construction is completed and the carriers are ready to provide service. The carrying amounts of prepayments for equipment include capitalized interests related to borrowings, of which the information is as follows:

Capitalized interest Capitalization rate		For the Nine Months	Ended September 30	Ended September 30
		2020 NT$ US$ (Note 6) $ 1,656 $ 57 1.20%-1.84%		2019
				NT$ US$ (Note 6) $ 7,606 $ 245 3.28%-3.81%

14. LEASE ARRANGEMENTS

The Group leases certain business office and office equipment which qualify as short-term leases and as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

2020

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Three Months Ended September 30 NT$ US$ (Note 6) $ 7,990 $ 274 $ 55 $ 2 $ 8,045 $ 276	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			NT$ US$ (Note 6) $ 25,221 $ 867 $ 165 $ 5 $ 25,386 $ 872

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2019

2019
Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Three Months Ended September 30 NT$ US$ (Note 6) $ 7,550 $ 243 $ 534 $ 17 $ 8,084 $ 260	For the Nine Months Ended September 30
			NT$ US$ (Note 6) $ 23,253 $ 749 $ 1,617 $ 52 $ 24,870 $ 801

15. BORROWINGS

a. Short-term loans

Unsecured borrowings Credit borrowings Interest rate		September 30, 2020 NT$ US$ (Note 6) $ 5,533,000 $ 190,138 0.80%-1.12%		December 31, 2019 NT$ US$ (Note 6) $ 6,500,000 $ 216,811 0.90%-0.95%		September 30, 2019
						NT$ US$ (Note 6) $ 7,922,000 $ 255,219 0.90%-1.15%

b. Short-term bills payable (Note 25)

Commercial paper Less: Unamortized discounts		September 30, 2020 NT$ US$ (Note 6) $ 7,220,000 $ 248,110 4,195 144 $ 7,215,805 $ 247,966		December 31, 2019 NT$ US$ (Note 6) $ 3,206,000 $ 106,938 679 23 $ 3,205,321 $ 106,915		September 30, 2019
						NT$ US$ (Note 6) $ 4,450,000 $ 143,363 1,295 41 $ 4,448,705 $ 143,322

c. Long-term borrowings

Secured bank loans (1) (Note 25) Unsecured bank loans (2) Less: Current portion Long-term borrowings		September 30, 2020 NT$ US$ (Note 6) $ 9,033,203 $ 310,419 13,173,176 452,686 22,206,379 763,105 3,078,647 105,795 $ 19,127,732 $ 657,310		December 31, 2019 NT$ US$ (Note 6) $ 9,107,581 $ 303,789 14,431,648 481,375 23,539,229 785,164 3,387,593 112,995 $ 20,151,636 $ 672,169		September 30, 2019
						NT$ US$ (Note 6) $ 10,119,470 $ 326,014 13,779,683 443,933 23,899,153 769,947 4,069,026 131,090 $ 19,830,127 $ 638,857

1) Secured bank loans are mainly for the purpose of construction of vessels, and are secured by the related vessels under construction as collaterals. The loan period of the borrowings ranges from 2 months to 8 years and 3 months with floating interest rate ranges of 0.77%-3.65%, 2.42%-3.65% and 2.68%-3.65% as of September 30, 2020, December 31, 2019 and September 30, 2019, respectively. The Group entered into interest rate swap contracts to exchange floating interest rate with fixed interest rate to manage the risk of interest rate fluctuations of the above outstanding

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loans. (Refer to Note 8).

2) Unsecured bank loans are for the purpose of general operations, with loan periods ranging from 1 month to 3 years and 10 months with interest rate ranges of 0.63%-1.50%, 0.83%-1.50% and 0.90%-1.50% as of September 30, 2020, December 31, 2019 and September 30, 2019, respectively.

16. OTHER PAYABLES

Material consumption and repairs Remuneration of directors Dock repairs Salaries and bonuses Fuel Employees’ compensation Charter freight Port charges Interest Others		September 30, 2020 NT$ US$ (Note 6) $ 170,418 $ 5,856 127,845 4,393 106,984 3,676 96,952 3,332 90,579 3,113 45,230 1,554 39,084 1,343 29,681 1,020 19,149 658 209,330 7,194 $ 935,252 $ 32,139		December 31, 2019 NT$ US$ (Note 6) $ 167,958 $ 5,602 141,172 4,709 40,639 1,356 90,941 3,033 137,418 4,584 58,674 1,957 93,252 3,110 36,536 1,219 35,287 1,177 198,318 6,613 $ 1,000,195 $ 33,363		September 30, 2019
						NT$ US$ (Note 6) $ 223,709 $ 7,207 134,712 4,340 37,724 1,215 89,132 2,872 196,048 6,316 52,214 1,682 66,116 2,130 34,477 1,111 40,523 1,305 162,517 5,236 $ 1,037,172 $ 33,414

17. RETIREMENT BENEFIT PLANS

Employee benefit expenses in respect of the Group’s defined benefit retirement plans were calculated using the actuarially determined pension cost discount rate as of December 31, 2019 and 2018. The amount were NT$1,936 thousand (US$67 thousand), NT$2,421 thousand (US$78 thousand), NT$5,845 thousand (US$201 thousand) and NT$7,245 thousand (US$233 thousand) for the three months ended September 30, 2020 and 2019 and for the nine months ended September 30, 2020 and 2019, respectively.

18. EQUITY

a. Common share capital

Number of shares authorized (in thousands) Number of shares issued and fully paid (in thousands) September 30, 2020 NT$ US$ (Note 6) Shares authorized$ 8,800,000 $ 302,405 Shares issued $ 8,450,557 $ 290,397		September 30, 2020 December 31, 2019 September 30, 2019 880,000 880,000 880,000 845,056 845,056 845,056 December 31, 2019 September 30, 2019 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 8,800,000 $ 293,529 $ 8,800,000 $ 283,505 $ 8,450,557 $ 281,873 $ 8,450,557 $ 272,247	September 30, 2020 December 31, 2019 September 30, 2019 880,000 880,000 880,000 845,056 845,056 845,056 December 31, 2019 September 30, 2019 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 8,800,000 $ 293,529 $ 8,800,000 $ 283,505 $ 8,450,557 $ 281,873 $ 8,450,557 $ 272,247	September 30, 2020 December 31, 2019 September 30, 2019 880,000 880,000 880,000 845,056 845,056 845,056 December 31, 2019 September 30, 2019 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 8,800,000 $ 293,529 $ 8,800,000 $ 283,505 $ 8,450,557 $ 281,873 $ 8,450,557 $ 272,247

				NT$ US$ (Note 6) $ 8,800,000 $ 283,505 $ 8,450,557 $ 272,247

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b. Capital surplus

Capital surplus
May be used to offset a deficit, distributed as cash dividends or transferred to share capital (Note) Conversion of bonds Excess of merger May only be used to offset a deficit Donations Share of change in capital surplus of associates or joint venture		September 30, 2020 NT$ US$ (Note 6) $ 93,474 $ 3,212 5,428 186 16,197 557 64 2 $ 115,163 $ 3,957		December 31, 2019 NT$ US$ (Note 6) $ 93,474 $ 3,118 5,428 181 16,200 540 50 2 $ 115,152 $ 3,841		September 30, 2019
		NT$ $ 93,474 5,428 16,197 64 $ 115,163		NT$ $ 93,474 5,428 16,200 50 $ 115,152		NT$ $ 93,474 5,428 16,200 50 $ 115,152	US$ (Note 6) $ 3,011 175 522 2 $ 3,710

Note: Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus).

The excess of merger recognized from the Company’s acquisition of China Fortune Marine Transport Corporation in 1993 was due to the excess of proceeds over the par value of the new shares issued to acquire China Fortune Marine Transport Corporation.

c. Retained earnings and dividend policy

Under the dividend policy as set forth in the amended Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years. When there is any remaining profit, 10% of the unappropriated earnings from the net profit after tax for the current period coupled with other items that recognized in retained earning directly for the current period shall be set aside as legal reserve. Then, after setting aside or reversing a special reserve in accordance with the laws and regulations, the company shall use the remaining profit together with any undistributed retained earnings as the basis for the Company’s board of directors to propose a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders.

Dividends distributed to stockholders are decided after consideration has been given to the business perspective of the Company, the life cycle of various products or service provided, capital requirement in the future and the effect of possible changes of tax laws. Dividends shall be distributed under the objective of maintaining a stable dividend policy. For issue of dividends, except to save for the purposes of improving the financial structure, reinvestments, production expansion or other capital expenditures in which capital is required, dividends distributed shall not be lower than 50% of net profit after tax deduction for offset of loses, legal reserve, and special reserve, and the cash dividend shall not be lower than 10% of shareholders’ bonus of that year.

For the policies on the distribution of employees’ compensation and remuneration of directors after the amendment, refer to employees’ compensation and remuneration of directors in Note 20-e.

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Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2019 and 2018 which have been approved in the shareholders’ meetings on June 9, 2020 and June 13, 2019, respectively, were as follows:

Legal reserve Special reserve Cash dividends		Appropriation of Earnings 2019 2018 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 183,083 $ 6,292 $ 166,884 $ 5,376 - - (2,000,954) (64,464) 1,605,606 55,175 1,521,100 49,005 $ 1,788,689 $ 61,467 $ (312,970) $ (10,083)	Appropriation of Earnings 2019 2018 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 183,083 $ 6,292 $ 166,884 $ 5,376 - - (2,000,954) (64,464) 1,605,606 55,175 1,521,100 49,005 $ 1,788,689 $ 61,467 $ (312,970) $ (10,083)	Dividend Per Share	Dividend Per Share
		2019 NT$ US$ (Note 6) $ 183,083 $ 6,292 - - 1,605,606 55,175 $ 1,788,689 $ 61,467		2019 NT$ $ 1.9	2018
					NT$ $ 1.8

d. Other equity items

New Taiwan dollars

Exchange Differences on Translating the Financial Statements of Foreign Operations Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income Gain (Loss) on Hedging Instruments Balance at January 1, 2020 $ (2,330,970 ) $ 4,246,275 $ 2 Exchange differences on translating the financial statements of foreign operations (1,135,305) - - Unrealized valuation gain (loss) on financial assets at FVTOCI - (1,625,453 ) - Share of other comprehensive gain (loss) of associates and joint ventures accounted for using the equity method (59,875) 79 (1 ) Disposal of investments in equity instruments designated as at FVTOCI by associates - (110) - Balance at September 30, 2020 $ (3,526,150) $ 2,620,791 $ 1 Balance at January 1, 2019 $ (1,312,549) $ 2,318,592 $ 2 Exchange differences on translating the financial statements of foreign operations 428,019 - - Unrealized gain (loss) on financial assets at FVTOCI - 1,743,835 - Share of the other comprehensive income of associates accounted for using the equity method 21,895 13,942 - Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal - (203,950) - Share of other comprehensive gain (loss) of associates and joint ventures accounted for using the equity method - 1,078 - Balance at September 30, 2019 $ (862,635) $ 3,873,497 $ 2	Gains on Property Revaluation $ 133 - - 12 -
	$ 145
	$ 133 - - - - -
	$ 133

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U.S. dollars (Note 6)

Exchange Differences on Translating the Financial Statements of Foreign Operations Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income Gain (Loss) on Hedging Instruments Balance at January 1, 2020 $ (77,751 ) $ 141,637 $ - Exchange differences on translating the financial statements of foreign operations (39,014 ) - - Unrealized valuation gain (loss) on financial assets at FVTOCI - (55,857 ) - Share of other comprehensive gain (loss) of associates and joint ventures accounted for using the equity method (2,058 ) 3 - Disposal of investments in equity instruments designated as at FVTOCI by associates - (4 ) - Changes in translation adjustments (2,351) 4,283 - Balance at September 30, 2020 $ (121,174) $ 90,062 $ - Balance at January 1, 2019 $ (42,733 ) $ 75,487 $ - Exchange differences on translating the financial statements of foreign operations 13,789 - - Unrealized gain (loss) on financial assets at FVTOCI - 56,180 - Share of the other comprehensive income of associates accounted for using the equity method 706 449 - Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal - - - Share of other comprehensive gain (loss) of associates and joint ventures accounted for using the equity method - 35 - Changes in translation adjustments 447 (7,360) - Balance at September 30, 2019 $ (27,791) $ 124,791 $ -	Gains on Property Revaluation $ 4 - - - - 1
	$ 5
	$ 4 - - - - - -
	$ 4

19. REVENUE

a. Disaggregation of revenue

For the Three Months Ended September 30

2020 NT$ US$ (Note 6) $ 2,306,472 $ 79,260 39,220 1,348 4,257 146 $ 2,349,949 $ 80,754 For the Nine Months		2019
	NT$ US$ (Note 6) $ 3,024,039 $ 97,424 44,914 1,447 14,260 459 $ 3,083,213 $ 99,330 Ended September 30
2020		2019
		NT$ US$ (Note 6) $ 7,115,744 $ 229,244 126,700 4,082 30,225 973 $ 7,272,669 $ 234,299

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b. Contract balances

Contract balances
Contract assets - transportation services		September 30, 2020 NT$ US$ (Note 6) $ 176,602 $ 6,069		December 31, 2019 NT$ US$ (Note 6) $ 224,736 $ 7,496		September 30, 2019
						NT$ US$ (Note 6) $ 215,443 $ 6,941

The Group provides for expected credit losses prescribed, which permits the use of a lifetime expected loss provision for the contract assets. The contract assets will be transferred to trade receivables when the corresponding invoice is billed to the client, and the contract assets have substantially the same risk characteristics as the trade receivables for the same types of contracts. Therefore, the Group concluded that the expected loss rates for trade receivables can be applied to the contract assets. For nine months ended September 30, 2020 and 2019, no impairment losses were recognized.

The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Group’s satisfaction of performance obligations and the respective customer’s payment. As of September 30, 2020, December 31, 2019 and September 30, 2019, the balance of contract liabilities were not material.

20. NET PROFIT

a. Other operating revenue

Since the businesses of the Company and its subsidiaries differ, the operating income in their individual financial statements also differs. Thus, the net operating income of Yue-Li, Yue-Tung and Falcon presented as other operating revenue in the consolidated comprehensive income statements was as follows:

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2020 NT$ US$ (Note 6) $ 2,782 $ 96 (2,809) (97) (27) (1) 247,409 8,502 $ 247,382 $ 8,501 For the Nine Months		2019
	NT$ US$ (Note 6) $ - $ - - - - - 186,140 5,997 $ 186,140 $ 5,997 Ended September 30
2020 NT$ US$ (Note 6) $ 2,782 $ 96 (2,809) (97) (27) (1) 282,669 9,714 $ 282,642 $ 9,713		2019
		NT$ US$ (Note 6) $ - $ - - - - - 245,554 7,911 $ 245,554 $ 7,911

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b. Finance costs

Finance costs
Interest on bank loans/commercial papers Interest on bank loans/commercial papers	For the Three Months Ended September 30
	2020 NT$ US$ (Note 6) $ 88,088 $ 3,027 For the Nine Months		2019
		NT$ US$ (Note 6) $ 152,113 $ 4,901 Ended September 30
	2020 NT$ US$ (Note 6) $ 322,216 $ 11,072		2019
			NT$ US$ (Note 6) $ 481,650 $ 15,517

c. Depreciation and amortization

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2020 NT$ US$ (Note 6) $ 587,854 $ 20,200 8,146 280 $ 596,000 $ 20,480 $ 3,994 $ 137 For the Nine Months		2019
	NT$ US$ (Note 6) $ 607,568 $ 19,574 2,651 85 $ 610,219 $ 19,659 $ 2,455 $ 79 Ended September 30
2020		2019
		NT$ US$ (Note 6) $ 1,800,928 $ 58,019 6,422 207 $ 1,807,350 $ 58,226 $ 6,961 $ 224

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d. Employee benefits expense

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2020 NT$ US$ (Note 6) $ 297,239 $ 10,214 6,800 234 304,039 10,448 6,469 222 1,936 67 8,405 289 24,532 843 $ 336,976 $ 11,580 $ 279,241 $ 9,596 57,735 1,984 $ 336,976 $ 11,580 For the Nine Months		2019
	NT$ US$ (Note 6) $ 303,986 $ 9,793 6,489 209 310,475 10,002 6,408 206 2,421 78 8,829 284 30,714 990 $ 350,018 $ 11,276 $ 281,374 $ 9,065 68,644 2,211 $ 350,018 $ 11,276 Ended September 30
2020 NT$ US$ (Note 6) $ 855,060 $ 29,383 18,795 646 873,855 30,029 17,809 612 5,845 201 23,654 813 68,069 2,339 $ 965,578 $ 33,181 $ 811,888 $ 27,900 153,690 5,281 $ 965,578 $ 33,181		2019
		NT$ US$ (Note 6) $ 885,231 $ 28,519 20,111 648 905,342 29,167 17,549 565 7,245 234 24,794 799 77,884 2,509 $1,008,020 $ 32,475 $ 843,917 $ 27,188 164,103 5,287 $1,008,020 $ 32,475

e. Employees’ compensation and remuneration of directors

The Company accrued employees’ compensation and remuneration of directors at the rates 1% and no higher than 1%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. For the three months and nine months ended September 30, 2020 and 2019, based on estimated annual profit, both the employees’ compensation and the remuneration of directors were accrued at the rate of 1%, respectively. The amounts were as follows:

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For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2020 NT$ US$ (Note 6) $ 4,146 $ 142 $ 4,146 $ 142 For the Nine Months		2019
	NT$ US$ (Note 6) $ 8,879 $ 286 $ 8,879 $ 286 Ended September 30
2020 NT$ US$ (Note 6) $ 4,146 $ 142 $ 4,146 $ 142		2019
		NT$ US$ (Note 6) $ 11,130 $ 359 $ 11,130 $ 359

If there is a change in the amounts after the annual consolidated financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate.

The employees’ compensation and remuneration of directors for 2019 and 2018, which were resolved by the board of directors on March 10, 2020 and March 19, 2019, respectively, were as follows:

Employees’ compensation Remuneration of directors		Cash Amount for the Year	Cash Amount for the Year	Ended December 31
		2019 NT$ US$ (Note 6) $ 17,590 $ 587 $ 17,590 $ 587		2018
				NT$ US$ (Note 6) $ 16,344 $ 532 $ 16,344 $ 532

There was no difference between the actual amounts of employees’ compensation and remuneration of directors resolved and the amounts recognized in the consolidated financial statements for the years ended December 31, 2019 and 2018.

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

21. INCOME TAXES

a. Major components of income tax (benefit) expense recognized in profit or loss

Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior periods Deferred tax In respect of the current year Income tax (benefit) expense recognized in profit or loss		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
		2020 NT$ US$ (Note 6) $ (59) $ (2) - - (1,493) (51) (1,552) (53) (869) (30) $ (2,421) $ (83)		2019
				NT$ US$ (Note 6) $ 129 $ 4 - - - - 129 4 (3) - $ 126 $ 4

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Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior periods Deferred tax In respect of the current year Income tax (benefit) expense recognized in profit or loss		For the Nine Months	Ended September 30	Ended September 30
		2020 NT$ US$ (Note 6) $ 11,377 $ 391 2,254 77 (61,736) (2,121) (48,105) (1,653) 2,801 96 $ (45,304) $ (1,557)		2019
				NT$ US$ (Note 6) $ 15,570 $ 502 105,265 3,391 - - 120,835 3,893 10,245 330 $ 131,080 $ 4,223

In July 2019, the president of the ROC announced the amendments to the Statute for Industrial Innovation, which stipulate that the amounts of unappropriated earnings in 2018 and thereafter that are reinvested in the construction or purchase of certain assets or technologies are allowed as deduction when computing the income tax on unappropriated earnings. When calculating the tax on unappropriated earnings, the Group only deducts the amount of the unappropriated earnings that has been reinvested in capital expenditure.

In accordance with Rule No. 10904550440 issued by the Ministry of Finance of Taiwan (MOF), the Group used the losses incurred in the first quarter of 2020 to estimate losses for the first six months of 2020 and this amount is deducted from the Group’s unappropriated earnings for 2018. However, for the consolidated financial reporting purpose, income tax expense is reversed to the extent that it is not probable to be repaid subsequently.

In addition, in accordance with Rule No. 10904558730 issued by the MOF, the Group has deducted the amount of dividends distributed in 2020 attributable to the increase in the beginning retained earnings for 2018 as a result of initial adoption of IFRS 9 when calculating the tax on unappropriated earnings for 2018.

b. Income tax assessments

The income tax returns through 2018 of the Company and its subsidiaries have been assessed by the tax authorities.

22. EARNINGS PER SHARE

The earnings and weighted-average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

a. Net profit for the year

Earnings used in the computation of basic/diluted EPS		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
		2020 NT$ US$ (Note 6) $ 743,046 $ 25,534		2019
				NT$ US$ (Note 6) $ 860,761 $ 27,730

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Earnings used in the computation of basic/diluted EPS		For the Nine Months	Ended September 30	Ended September 30
		2020 NT$ US$ (Note 6) $ 459,336 $ 15,785		2019
				NT$ US$ (Note 6) $ 988,546 $ 31,847

b. Weighted average number of ordinary shares outstanding (in thousands of shares):

Weighted-average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employees’ compensation Weighted-average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended September 30 2020 2019 845,056 845,056 138 265 845,194 845,321	For the Three Months Ended September 30 2020 2019 845,056 845,056 138 265 845,194 845,321	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2020 845,056 138 845,194		2020 845,056 297 845,353	2019 845,056 483 845,539

If the Group offered to settle the compensation paid to employees in cash or shares, the Group assumed that the entire amount of the compensation would be settled in shares, and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

23. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

Management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values.

b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

September 30, 2020

New Taiwan dollars Financial assets at FVTPL Mutual funds Derivative instruments Domestic listed shares	Level 1 $ 38,418 - 23,502 $ 61,920	Level 2 $ 1,428,692 11,537 - $ 1,440,229	Level 3 $ - - - $ -	Total $ 1,467,110 11,537 23,502 $ 1,502,149

(Continued)

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Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments U.S. dollars (Note 6) Financial assets at FVTPL Mutual funds Derivative instruments Domestic listed shares Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments December 31, 2019 New Taiwan dollars Financial assets at FVTPL Derivative instruments Mutual funds Financial assets at FVTOCI Equity investments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments	Level 1 $ 5,965,795 - 440,277 $ 6,406,072 $ - $ 1,320 - 808 $ 2,128 $ 205,010 - 15,130 $ 220,140 $ - Level 1 $ - 41,510 $ 41,510 $ 6,402,641 - 721,482 $ 7,124,123 $ -	Level 2 $ - - - $ - $ 353,980 $ 49,096 396 - $ 49,492 $ - - - $ - $ 12,164 Level 2 $ 14,554 1,885,144 $ 1,899,698 $ - - - $ - $ 189,635	Level 3 $ - 2,042,106 - $ 2,042,106 $ - $ - - - $ - $ - 70,175 - $ 70,175 $ - Level 3 $ - - $ - $ - 2,544,561 - $ 2,544,561 $ -	Total $ 5,965,795 2,042,106 440,277 $ 8,448,178 $ 353,980 $ 50,416 396 808 $ 51,620 $ 205,010 70,175 15,130 $ 290,315 $ 12,164 (Concluded) Total $ 14,554 1,926,654 $ 1,941,208 $ 6,402,641 2,544,561 721,482 $ 9,668,684 $ 189,635 (Continued)

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U.S. dollars (Note 6) Financial assets at FVTPL Derivative instruments Mutual funds Financial assets at FVTOCI Equity investments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments September 30, 2019 New Taiwan dollars Financial assets at FVTPL Derivative instruments Mutual funds Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments U.S. dollars (Note 6) Financial assets at FVTPL Derivative instruments Mutual funds	Level 1 $ - 1,384 $ 1,384 $ 213,564 - 24,065 $ 237,629 $ - Level 1 $ - 38,980 $ 38,980 $ 6,308,472 - 602,827 $ 6,911,299 $ - $ - 1,256 $ 1,256	Level 2 $ 485 62,881 $ 63,366 $ - - - $ - $ 6,325 Level 2 $ 9,600 1,826,469 $ 1,836,069 $ - - - $ - $ 247,614 $ 309 58,842 $ 59,151	Level 3 $ - - $ - $ - 84,875 - $ 84,875 $ - Level 3 $ - - $ - $ - 2,401,675 - $ 2,401,675 $ - $ - - $ -	Total $ 485 64,265 $ 64,750 $ 213,564 84,875 24,065 $ 322,504 $ 6,325 (Concluded) Total $ 9,600 1,865,449 $ 1,875,049 $ 6,308,472 2,401,675 602,827 $ 9,312,974 $ 247,614 $ 309 60,098 $ 60,407 (Continued)

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Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments	Level 1 $ 203,237 - 19,421 $ 222,658 $ -	Level 2 $ - - - $ - $ 7,977	Level 3 $ - 77,374 - $ 77,374 $ -	Total $ 203,237 77,374 19,421 $ 300,032 $ 7,977

(Concluded)

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments
Derivatives - cross-currency
swap contracts
Derivatives - interest rate swap
contracts
Mutual funds

Valuation Techniques and Inputs

Discounted cash flow.
Future cash flows are estimated based on observable forward
exchange rates and interest rate at the end of the reporting
period, discounted at a rate that reflects the credit risk of
various counterparties.
Discounted cash flow.
Future cash flows are estimated based on observable forward
interest rates at the end of the reporting period, discounted at a
rate that reflects the credit risk of various counterparties.
The fair values of the single investments which do not have
active market values and the whole investment portfolio were
measured based on observable information from the active
market.

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair values of domestic unlisted equity securities were determined using the asset-based approach. The asset-based approach assesses the fair-market value of each asset and liability of the target of evaluation, and considers risk factors like the liquidity discount rate to estimate the target’s fair value.

37 -

c. Categories of financial instruments

Financial assets FVTPL Mandatorily at FVTPL Financial assets at amortized cost (1) Financial assets at FVTOCI - equity instruments Financial liabilities FVTPL Held for trading Amortized cost (2)	September 30, 2020 NT$ US$ (Note 6) $ 1,502,149 $ 51,620 17,163,046 589,795 8,448,178 290,315 353,980 12,164 36,097,518 1,240,465	December 31, 2019 NT$ US$ (Note 6) $ 1,941,208 $ 64,750 17,462,686 582,478 9,668,684 322,504 189,635 6,325 34,433,306 1,148,542	September 30, 2019
			NT$ US$ (Note 6) $ 1,875,049 $ 60,407 20,403,494 657,329 9,312,974 300,032 247,614 7,977 37,470,925 1,207,182

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, trade receivables (including related parties), other receivables, refundable deposits and long-term receivables.
2) The balances include financial liabilities measured at amortized cost, which comprise short-term and long-term loans (including current portion of long-term borrowings), short-term bills payable, trade payables (including related parties) and other payables.
d. Financial risk management objectives and policies

The Group’s major financial instruments include equity investments, derivative financial instruments, trade receivables, trade payables and borrowings. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Group’s policies approved by the board of directors, which provided written principles on foreign currency exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including:

a) Cross-currency swap contracts to mitigate the exchange rate risk and interest rates risk arising from the Company’s foreign currency denominated loans due to foreign operations and the Group’s bank loans;
b) Interest rate swaps to mitigate the interest rate risk arising from bank loans.
38 -

There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Group is exposed to foreign currency risk arising from engagement in foreign-currency transactions, investments and borrowings. The Group used cross-currency swap contracts to hedge against adverse risks pertaining to exchange rates, maturing the terms of foreign currency denominated borrowings to maximize hedge effectiveness.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) exposed to foreign currency risk at the end of the reporting period are set out in Note 28.

Sensitivity analysis

The Group was mainly exposed to the USD, AUD, and the HKD.

The following table details the Group’s sensitivity to a 10% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity analysis included outstanding foreign currency denominated monetary items and foreign currency denominated loans due to foreign operations, and adjusts their translation at the end of the reporting period for a 10% change in foreign currency rates. A positive/negative number below indicates an increase/a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 10% against the relevant currency. For a 10% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.

Profit or loss Profit or loss Profit or loss	USD (i)	USD (i)
	For the Nine Months	Ended September 30
	2020 2019 NT$ US$ (Note 6) NT$ US$ (Note 6) $ (4,079) $ (140) $ (2,867) $ (92) AUD (ii)	2019
	For the Nine Months	Ended September 30
	2020 2019 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 54,643 $ 1,878 $ 78,381 $ 2,525 HKD (iii)	2019
	For the Nine Months	Ended September 30
	2020 NT$ US$ (Note 6) $ (1,039) $ (36)	2019
		NT$ US$ (Note 6) $ (8,921) $ (287)

i. This was mainly attributable to the USD accounts receivables held by the Group.
ii. This was mainly attributable to the exposure to the Group’s AUD denominated bank loans.
iii. This was mainly attributable to the HKD deposits held by the Group.
39 -

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts and cross-currency swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

The carrying amount of the Group’s financial assets and financial liabilities with exposure to interest rate risk at the end of the reporting period were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	September 30, 2020 NT$ US$ (Note 6) $ 14,059,269 $ 483,136 17,536,931 602,644 1,795,352 61,696 17,418,253 598,565	December 31, 2019 NT$ US$ (Note 6) $ 15,653,740 $ 522,139 14,680,289 489,669 450,320 15,021 18,564,261 619,221	September 30, 2019
			NT$ US$ (Note 6) $ 18,331,075 $ 590,563 17,456,408 562,384 545,275 17,567 18,813,450 606,103

The Group is exposed to cash flow interest rate risk in relation to floating-rate bank borrowings. The Group aims to keep borrowings at fixed rates. In order to achieve this result, the Group entered into cross-currency swap contracts and interest rate swaps to hedge its exposures to changes in cash flow of the borrowings. The critical terms of these cross-currency swap contracts and interest rate swaps are similar to those of hedged borrowings. The Group’s cash flow interest rate risk was mainly concentrated in the fluctuation of LIBOR arising from the Group’s New Taiwan dollars and USD denominated borrowings.

The Group is also exposed to fair value interest rate risk in relation to fixed-rate bank borrowings and pay-fixed/receive-floating interest rate swaps. It is the Group’s policy to keep its borrowings at fixed rate of interests so as to minimize the cash flow interest rate risk.

Sensitivity analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Group’s pre-tax (loss) profit for the nine months ended September 30, 2020 and 2019 would increase/decrease by NT$58,586 thousand (US$2,013 thousand) and NT$68,506 thousand (US$ 2,207 thousand), respectively, which was mainly attributable to the Group’s exposure to interest rates on its variable-rate bank borrowings.

c) Other price risk

The Group was exposed to equity price risk through its investments in equity securities and open-end beneficiary certificates. The Group manages this risk by maintaining a portfolio of investments with different risk levels. The Group’s equity price risk was mainly concentrated on equity instruments in Taiwan. Investments in equity securities are strategic investments made by the financial department of the Group.

40 -

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 10% higher/lower, pre-tax profit for the nine months ended September 30, 2020 and 2019 would have increased/decreased by NT$149,061 thousand (US$5,122 thousand) and NT$186,545 thousand (US$6,010 thousand), as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the nine months ended September 30, 2020 and 2019 would increase/decrease by NT$844,818 thousand (US$29,032 thousand) and NT$931,297 thousand (US$30,003 thousand), as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group because of the failure of the counterparty to discharge its obligation and the financial guarantees provided by the Group could arise from the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets and the maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.

The Group adopted a policy of credit risk management regarding operations. Risk assessment of counterparties takes into consideration the financial situation, credit rating by both external and internal parties, historical transaction records, current economic condition, and other factors that might affect the payment ability of the counterparty. This information is supplied by independent rating agencies where available and, if not available, the Group uses other publicly available financial information and its own trading records to rate its major customers.

The Group’s concentration of credit risk was related to the top five customers of the Group whose balances of trade receivables are among the top five. The Group’s exposure and the credit ratings of its counterparties are continuously monitored. When the counterparties are associates, the Company will consider them as of similar nature with the counterparties. For the nine months ended 2020 and 2019, the credit risk concentration was immaterial for any counterparty at any point in time.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 2020, December 31, 2019 and September 30, 2019, the Group had available unutilized short-term bank loan facilities of NT$11,061,520 thousand (US$380,121 thousand), NT$13,860,000 thousand (US$462,308 thousand) and NT$10,913,488 thousand (US$351,594 thousand), respectively.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate liquidity risk management framework for the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, and continuously monitoring forecast and actual cash flows as well as matching the maturity profiles of financial assets and liabilities.

41 -
a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table include both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

September 30, 2020

On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,142,334 $ 39,255 Floating interest rate 2,680,437 92,111 Fixed interest rate 13,239,168 454,954 $ 17,061,939 $ 586,320 December 31, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,188,756 $ 39,652 Floating interest rate 3,436,967 114,642 Fixed interest rate 9,815,295 327,395 $ 14,441,018 $ 481,689 September 30, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,201,067 $ 38,694 Floating interest rate 6,168,750 198,736 Fixed interest rate 12,488,338 402,330 $ 19,858,155 $ 639,760	On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,142,334 $ 39,255 Floating interest rate 2,680,437 92,111 Fixed interest rate 13,239,168 454,954 $ 17,061,939 $ 586,320 December 31, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,188,756 $ 39,652 Floating interest rate 3,436,967 114,642 Fixed interest rate 9,815,295 327,395 $ 14,441,018 $ 481,689 September 30, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,201,067 $ 38,694 Floating interest rate 6,168,750 198,736 Fixed interest rate 12,488,338 402,330 $ 19,858,155 $ 639,760	1-5 Years NT$ US$ (Note 6) $ - $ - 14,337,209 492,688 4,549,556 156,342 $ 18,886,765 $ 649,030 1-5 Years NT$ US$ (Note 6) $ - $ - 15,178,749 506,296 5,213,144 173,887 $ 20,391,893 $ 680,183 1-5 Years NT$ US$ (Note 6) $ - $ - 12,302,964 396,358 5,351,516 172,407 $ 17,654,480 $ 568,765	More Than 5 Years	More Than 5 Years
			NT$ US$ (Note 6) $ - $ - 800,942 27,524 - - $ 800,942 $ 27,524 More Than 5 Years
			NT$ US$ (Note 6) $ - $ - 776,828 25,912 - - $ 776,828 $ 25,912 More Than 5 Years
Non-interest bearing Floating interest rate Fixed interest rate
	NT$ $ 1,201,067 6,168,750 12,488,338 $ 19,858,155	NT$ $ - 12,302,964 5,351,516 $ 17,654,480	NT$ $ - 1,358,342 - $ 1,358,342	US$ (Note 6) $ - 43,761 - $ 43,761

Taking into account the Group’s financial position, management does not believe that it is probable that the banks will exercise their discretionary rights to demand immediate repayment.

The amount of floating interest rate instruments of the nonderivative financial assets and liabilities will vary due to the difference between the floating interest rate and the expected interest rate on the balance sheet dates.

42 -
b) Liquidity and interest rate risk tables for derivative financial liabilities

The following table details the Group’s liquidity analysis for its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.

September 30, 2020

On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (7,930) $ (273) Gross settled Cross-currency swaps Inflows $ 232,427 $ 7,987 Outflows (250,420) (8,605) $ (17,993) $ ( 618) December 31, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ 1,927 $ 64 Gross settled Cross-currency swaps Inflows $ 243,345 $ 8,117 Outflows (273,350) (9,118) $ (30,005) $ (1,001) September 30, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ 3,419 $ 110 Gross settled Cross-currency swaps Inflows $ 244,602 $ 7,880 Outflows (286,117) (9,218) $ (41,515 ) $ (1,338 )	On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (7,930) $ (273) Gross settled Cross-currency swaps Inflows $ 232,427 $ 7,987 Outflows (250,420) (8,605) $ (17,993) $ ( 618) December 31, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ 1,927 $ 64 Gross settled Cross-currency swaps Inflows $ 243,345 $ 8,117 Outflows (273,350) (9,118) $ (30,005) $ (1,001) September 30, 2019 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ 3,419 $ 110 Gross settled Cross-currency swaps Inflows $ 244,602 $ 7,880 Outflows (286,117) (9,218) $ (41,515 ) $ (1,338 )	1-5 Years NT$ US$ (Note 6) $ (82,110) $ (2,822) $ 323,260 $ 11,109 (325,201) (11,175) $ (1,941) $ (66) 1-5 Years NT$ US$ (Note 6) $ 14,914 $ 497 $ 569,396 $ 18,993 (608,707) (20,304) $ (39,311) $ (1,311) 1-5 Years NT$ US$ (Note 6) $ 33,946 $ 1,094 $ 571,288 $ 18,405 (633,289) (20,402) $ (62,001) $ (1,997)	More Than	5 Years
			NT$ $ (43,529) $ - - $ - More Than	US$ (Note 6) $ (1,496) $ - - $ - 5 Years
			NT$ $ - $ - - $ - More Than	US$ (Note 6) $ - $ - - $ - 5 Years
Net settled Interest rate swaps Gross settled Cross-currency swaps Inflows Outflows
	NT$ $ 3,419 $ 244,602 (286,117) $ (41,515 )	NT$ $ 33,946 $ 571,288 (633,289) $ (62,001)	NT$ $ - $ - - $ -	US$ (Note 6) $ - $ - - $ -

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24. TRANSACTIONS WITH RELATED PARTIES

Related parties balances and transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

a. Related party name and category

Related Party Name
Asia Cement Corporation (Asia Cement)

Winyield Investment Ltd. (Winyield)

Cape Asia Ltd. (Cape Asia)

Cape Asia Newbuildings (III) Ltd. (Cape Asia III)

ITG-Uming Shipping Co., Ltd. (ITG-Uming Shipping)

Jiangxi Yadong Cement Co., Ltd. (Jiangxi Yadong)

Hubei Yadong Cement Co., Ltd. (Hubei Yadong)

Yuan Ding Co., Ltd. (Yuan Ding)

Asia Engineering Enterprise Corporation (Asia Engineering)
Far Eastern New Century Corporation (FENC)

Da Ju Fiber Co., Ltd. (Da Ju Fiber)

Opas Fund Segregated Portfolio Company

Related Party Category

Investors that have significant influence
over the Group
Associate
Associate
Associate
Associate
Related party in substance
Related party in substance
Related party in substance
Related party in substance
Related party in substance
Related party in substance
Related party in substance

b. Operating revenue

Account Items Freight revenue	Related Party Category Investors that have significant influence over the Group Asia Cement Related party in substance Associates		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
			2020 NT$ US$ (Note 6) $ 169,935 $ 5,840 17,185 591 58,121 1,997 $ 245,241 $ 8,428		2019
					NT$ US$ (Note 6) $ 139,755 $ 4,502 152,541 4,914 92 3 $ 292,388 $ 9,419

Account Items Freight revenue	Related Party Category Investors that have significant influence over the Group Asia Cement Related party in substance Associates		For the Nine Months	Ended September 30	Ended September 30
			2020 NT$ US$ (Note 6) $ 555,321 $ 19,083 112,672 3,872 79,509 2,732 $ 747,502 $ 25,687		2019
					NT$ US$ (Note 6) $ 495,606 $ 15,966 260,048 8,378 40,192 1,295 $ 795,846 $ 25,639

Freight rates are based on each vessel’s route, port call and loading/unloading rate, plus a markup to be negotiated on the basis of conditions and the specifications of bulk cement carriers. With the exception of the above charters, the terms of the transactions with related parties are generally the same as those for unrelated parties.

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c. Purchases

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2020 NT$ US$ (Note 6) $ 1,861 $ 64 - - $ 1,861 $ 64 For the Nine Months		2019
	NT$ US$ (Note 6) $ 122 $ 4 1,862 60 $ 1,984 $ 64 Ended September 30
2020		2019
		NT$ US$ (Note 6) $ 53,653 $ 1,729 5,941 191 $ 59,594 $ 1,920

The Group engages substantive related parties to provide ship material and repair services to the Group, and the relevant expenses are recognized as freight costs. Freight costs also include charter freight paid to substantive related parties of the Group.

d. Receivables from related parties (excluding loans to related parties)

Account Item Trade receivables from related parties Other receivables	Related Party Category/Name Investors that have significant influence over the Group Asia Cement Related parties in substance Jiangxi Yadong Associates Associates ITG-Uming Shipping		September 30, 2020 NT$ US$ (Note 6) $ 35,541 $ 1,221 - - 21,163 727 $ 56,704 $ 1,948 $ 27,936 $ 960		December 31, 2019		September 30, 2019
					NT$ US$ (Note 6) $ 63,349 $ 2,113 44,539 1,486 - $ 107,888 $ 3,599 $ 28,781 $ 960		NT$ US$ (Note 6) $ 78,591 $ 2,532 7,188 232 - - $ 85,779 $ 2,764 $ - $ -

The outstanding trade receivables from related parties are unsecured. No impairment loss was recognized for trade receivables from related parties for the nine months ended September 30, 2020 and 2019.

e. Payables to related parties (excluding loans from related parties)

f.	Account Items Trade payables - related parties Prepayments Account Items Prepaid expenses	Related Party Category/Name Related party in substance Related Party Category/Name Related party in substance Asia Engineering		September 30, 2020 NT$ US$ (Note 6) $ 64 $ 2 September 30, 2020 NT$ US$ (Note 6) $ 1,862 $ 64		December 31, 2019		September 30, 2019
						NT$ US$ (Note 6) $ 393 $ 13 December 31, 2019		NT$ US$ (Note 6) $ - $ - September 30, 2019
						NT$ US$ (Note 6) $ 34,252 $ 1,142		NT$ US$ (Note 6) $ 9,308 $ 300

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g. Acquisitions of financial assets

For the nine months ended September 30, 2020: None.

For the nine months ended September 30, 2019:

Related Party Category Related party in substance	Account Item Financial assets at FVTPL - current	Number of Shares (In Thousands) -	Underlying Asset Opas Fund Segregated Portfolio Tranche		Acquisition Price
					NT$ US$ (Note 6) $ 621 $ 20

The nature of transactions between the Group and OPAS Fund Company, relates to the acquisition or disposal of overseas funds of the OPAS Fund Segregated Portfolio Tranche through OPAS Fund Company’s platform. The decisions about the overseas fund portfolio were made and managed by the investment committee composed of investors including the Group.

h. Disposal of financial assets

For the three months ended September 30, 2020: None.

For the three months ended September 30, 2019: None

For the nine months ended September 30, 2020

Related Party Category Related party in substance	Account Item Financial assets at FVTPL - current	Number of Shares (In Thousands) 14	Underlying Assets Opas Fund Segregated Portfolio Tranche	Disposal Price NT$ US$ (Note 6) $ 536,706 $ 18,444	Gainon Disposal
					NT$ US$ (Note 6) $ 9,755 $ 335

For the nine months ended September 30, 2019

Related Party Category Related party in substance	Account Item Financial assets at FVTPL - current	Number of Shares (In Thousands) 29	Underlying Assets Opas Fund Segregated Portfolio Tranche	Disposal Price NT$ US$ (Note 6) $ 917,240 $ 29,550	Gain(Loss) on Disposal
					NT$ US$ (Note 6) $ 31,580 $ 1,017

i. Loans to related parties

For information about loans to related parties, refer to Table 1.

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j. Endorsements and guarantees

Related Party Category/Name Associates Amount endorsed Amount utilized Liabilities recognized Related parties in substance Amount endorsed Amount utilized Liabilities recognized		September 30, 2020 NT$ US$ (Note 6) $ 75,114 $ 2,581 $ 75,114 $ 2,581 $ - $ - $ 116,280 $ 3,996 $ 23,256 $ 799 $ - $ -		December 31, 2019 NT$ US$ (Note 6) $ 89,191 $ 2,975 $ 89,191 $ 2,975 $ - $ - $ 116,280 $ 3,879 $ 41,861 $ 1,396 $ - $ -		September 30, 2019
						NT$ US$ (Note 6) $ 96,418 $ 3,106 $ 96,418 $ 3,106 $ - $ - $ 116,280 $ 3,746 $ 23,256 $ 749 $ - $ -

For information about endorsements and guarantees, refer to Table 2.

k. Others

Account Item Related Temporary receipts (classified as other current liabilities) Investors t influenc Asia Ce Account Item Rent expense Other revenue Account Item Rent expense Other revenue	Related	Party Category September 30, 2020 NT$ US$ (Note hat have significant e over the Group ment (Note 1) $ 15,000 $ 515 Related Party Category Investors that have significant influence over the Group Related party in substance Yuan Ding (Note 2) Related party in substance FENC (Note 3) Related Party Category Investors that have significant influence over the Group Related party in substance Yuan Ding (Note 2) Related party in substance FENC (Note 3)		September 30, 2020	September 30, 2020	6)		December 31, 2019




						2020

Note 1: Asia Cement deposited to the Group revolving funds for ships.

Note 2: Refundable deposits for the lease were NT$4,573 thousand (US$157 thousand) as of September 30, 2020, December 31, 2019 and September 30, 2019.

Note 3: Remuneration of directors.

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l. Compensation of key management personnel

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2020 NT$ US$ (Note 6) $ 13,199 $ 454 714 25 $ 13,913 $ 479 For the Nine Months		2019
	NT$ US$ (Note 6) $ 18,894 $ 609 785 25 $ 19,679 $ 634 Ended September 30
2020 NT$ US$ (Note 6) $ 25,429 $ 874 2,142 73 $ 27,571 $ 947		2019
		NT$ US$ (Note 6) $ 35,631 $ 1,148 2,355 76 $ 37,986 $ 1,224

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

25. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets had been pledged or mortgaged as collateral for certain short-term bills payable, bank loans, cross-currency swap and cash deposits of Taiwan Power Company:

Property, plant and equipment (transportation) Financial assets at FVTOCI - current Pledged deposits (classified as Financial assets at amortized cost - current) Pledged deposits (classified as refundable deposits)		September 30, 2020 NT$ US$ (Note 6) $ 26,210,913 $ 900,719 2,415,973 83,023 145,500 5,000 62,248 2,139 $ 28,834,634 $ 990,881		December 31, 2019 NT$ US$ (Note 6) $ 25,904,644 $ 864,064 2,299,483 76,701 - - 55,292 1,844 $ 28,259,419 $ 942,609		September 30, 2019	September 30, 2019
		NT$ $ 26,210,913 2,415,973 145,500 62,248 $ 28,834,634		NT$ $ 25,904,644 2,299,483 - 55,292 $ 28,259,419		NT$ $ 27,002,597 2,233,860 - 47,148 $ 29,283,605	US$ (Note 6) $ 869,929 71,967 - 1,519 $ 943,415

26. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group were as follows:

a. Significant commitments
1) The Company entered into an agreement with Taiwan Power Company (TPC) to provide operational services for two ships of TPC - Taipower Prosperity I and Taipower Prosperity II. An agreement is canceled in September 2020 because ships are sold forward.
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2) In January 2018, U-Ming Singapore signed a 25-year Contract of Affreightment (COA) on iron ore shipment with Vale International SA, and entered into a shipbuilding contract with Qingdao Beihai Shipbuilding Heavy Industry Co., Ltd to construct 2 bulk carriers. One of vessels is delivered to U-Ming Singapore in September 2020 and the total contract amount of undelivered vessel was US$71,850 thousand. As of September 30, 2020, U-Ming Singapore has paid US$21,750 thousand, and the contract obligations would begin to be fulfilled after the completion of shipbuilding.
3) U-Ming Hong Kong entered into shipbuilding contract with Oshima Shipbuilding Co., Ltd. to construct 2 bulks carries. The total contract amount was US$72,400 thousand. As of September 30, 2020, U-Ming Hong Kong has paid US$7,240 thousand, and the contract obligations would begin to be fulfilled after the completion of shipbuilding.
b. Contingencies

The Group had financial guarantees given to banks in respect of banking facilities to associates and related parties in substance. Refer to Note 24 (j) for the details.

27. OTHER ITEMS

The impact of the COVID-19 pandemic results in a decline in operating revenue from January to September 2020 compared with the same period last year. From June 2020, the global economic resulted from the pandemic slows down and the market freight rise. Operations of the group from January to September gradually return to normal. The Group assesses that there are no doubts about continued operations, asset impairment, and financing risks at this stage.

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than the functional currencies and the related exchange rates between foreign currencies and the respective functional currencies were as follows:

September 30, 2020

					Carrying
		Foreign			Amount
		Currency		(In Thousands
	(In Thousands)		Exchange Rate		of NTD)
Financial assets
Monetary items
USD	$	2,343	29.100 (USD:NTD)	$	68,177
USD		792	6.8101 (USD:RMB)		23,051
HKD		2,774	0.1290 (HKD:USD)		10,413
				$	101,641
Non-monetary items
Financial assets at FVTOCI
HKD		117,282	0.1290 (HKD:USD)	$	440,277
					(Continued)

49 -

					Carrying
		Foreign			Amount
		Currency		(In Thousands
	(In Thousands)		Exchange Rate		of NTD)
Financial liabilities
Monetary items
USD	$	1,733	29.100 (USD:NTD)	$	50,439
AUD		26,378	0.7119 (AUD:USD)		546,419
				$	596,858
Non-monetary items
Derivative instruments
AUD		26,327	0.7119 (AUD:USD)	$	31,740
					(Concluded)
December 31, 2019
					Carrying
		Foreign			Amount
		Currency		(In Thousands
	(In Thousands)		Exchange Rate		of NTD)
Financial assets
Monetary items
USD	$	1,903	29.980 (USD:NTD)	$	57,043
USD		427	6.9762 (USD:RMB)		12,804
HKD		11,620	0.1284 (HKD:USD)		44,724
				$	114,571
Non-monetary items
Financial assets at FVTOCI
HKD		187,447	0.1284 (HKD:USD)	$	721,482
Derivative financial assets
AUD		22,271	0.7006 (AUD:USD)		6,309
				$	727,791
Financial liabilities
Monetary items
USD		1,664	29.980 (USD:NTD)	$	49,890
AUD		37,561	0.7006 (AUD:USD)		788,976
				$	838,866
Non-monetary items
Derivative financial liabilities
AUD		15,009	0.7006 (AUD:USD)	$	59,992

50 -

September 30, 2019

September 30, 2019
					Carrying
		Foreign			Amount
		Currency		(In Thousands
	(In Thousands)		Exchange Rate		of NTD)
Financial assets
Monetary items
USD	$	1,468	31.040 (USD:NTD)	$	45,554
USD		599	7.0729 (USD:RMB)		18,588
HKD		22,540	0.1275 (HKD:USD)		89,213
				$	153,355
Non-monetary items
Financial assets at FVTOCI
HKD		152,306	0.1275 (HKD:USD)	$	602,827
Financial liabilities
Monetary items
USD		1,143	31.040 (USD:NTD)	$	35,475
AUD		37,387	0.6754 (AUD:USD)		783,814
				$	819,289
Non-monetary items
Derivative instruments
AUD		37,280	0.6754 (AUD:USD)	$	86,061

For the three months ended September 30, 2020 and 2019 and for the nine months ended September 30, 2020 and 2019, realized and unrealized foreign exchange gains (losses) were NT$(34,484) thousand (US$(1,185) thousand), NT$26,636 thousand (US$ 858 thousand), NT$(34,476) thousand (US$(1,111) thousand) and NT$33,296 thousand (US$1,073 thousand), respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions.

29. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures). (Table 3)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital. (None)
5)Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital. (None)
51 -
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital. (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
8)Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)
9) Trading in derivative instruments. (Notes 8 and 23)
10) Intercompany relationships and significant intercompany transactions. (Table 6)
b. Information on investees. (Table 7)
c. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriated investment income, and limit on the amount of investment in the mainland China area. (Table 8)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses. (Table 6)
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period
- c) The amount of property transactions and the amount of the resultant gains or losses
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes
- e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds
- f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services
d. Information of major shareholders ： List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 9)
52 -

30. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments were the marine transportation department and the investment department.

a. Segment revenues and results

The following was an analysis of the Group’s revenue and results by reportable segment.

	Segment	Re	Segment P	Segment P	rofits
For t	he Nine Months	E	For the Nine Months	En	ded September 30
2020	US$ (Note 6) $ 200,471 9,713 $ 210,184		2020 NT$ US$ (Note 6) $ (53,952 ) $ (1,854 ) 276,428 9,499 222,476 7,645 191,556 6,583 $ 414,032 $ 14,228		2019
NT$ $ 5,833,710 282,642 $ 6,116,352					NT$ US$ (Note 6) $ 747,546 $ 24,083 245,331 7,904 992,877 31,987 126,749 4,083 $ 1,119,626 $ 36,070

Reporting income is generated from transactions with external parties. There are no inter-segment transactions for the nine months ended September 30, 2020 and 2019, respectively.

Segment revenue represents the revenue earned by each segment. The amounts are provided to the management as a basis for resource allocation to segments and to evaluate segment performance.

b. Segment total assets and liabilities

Segment assets Marine transportation Investment Others Consolidated total assets Segment liabilities Marine transportation Investment Consolidated total liabilities		September 30, 2020 NT$ US$ (Note 6) $ 50,653,566 $ 1,740,672 6,436,862 221,198 2,942,645 101,122 $ 60,033,073 $ 2,062,992 $ 36,887,785 $ 1,267,621 268,769 9,237 $ 37,156,554 $ 1,276,858		December 31, 2019 NT$ US$ (Note 6) $ 52,283,544 $ 1,743,947 7,062,243 235,565 2,913,190 97,171 $ 62,258,977 $ 2,076,683 $ 35,406,908 $ 1,181,018 7,510 250 $ 35,414,418 $ 1,181,268		September 30, 2019
						NT$ US$ (Note 6) $ 56,073,918 $ 1,806,505 6,853,465 220,795 2,853,393 91,926 $ 65,780,776 $ 2,119,226 $ 38,474,799 $ 1,239,523 2,597 84 $ 38,477,396 $ 1,239,607

53 -

TABLE 1

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR NINE MONTHS ENDED SEPTEMBER 30, 2020 (In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Note b)	Ending Balance (Note b)	Actual Amount Borrowed (Note b)	Interest Rate	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower (Note b)	Aggregate Financing Limits (Note b)
													Item	Value
1	U-Ming Singapore	Winyield Eagle Cape Asia (III) Cape Asia	Long-term receivables - related parties Other receivable - related parties Long-term receivables - related parties Long-term receivables - related parties	Y Y Y Y	$ 782,337 (US$ 26,884) 29,100 (US$ 1,000) 106,215 (US$ 3,650) 2,910 (US$ 100)	$ 741,597 (US$ 25,484) 29,100 (US$ 1,000) 87,300 (US$ 3,000) 2,910 (US$ 100)	$ 697,947 (US$ 23,984) (Note c) - (US$ -) 87,008 (US$ 2,990) 2,910 (US$ 100)	- - - -	Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - -	Purchasing equipment of transportation and operational revolving fund Purchasing equipment of transportation and operational revolving fund Purchasing equipment of transportation and operational revolving fund Operational revolving fund	$ - - - -	- - - -	$ - - - -	30% of net worth of subsidiary $9,358,460 (US$321,597) 30% of net worth of subsidiary $9,358,460 (US$321,597) 30% of net worth of subsidiary $9,358,460 (US$321,597) 30% of net worth of subsidiary $9,358,460 (US$321,597)	40% of net worth of subsidiary $12,477,947 (US$428,795) 40% of net worth of subsidiary $12,477,947 (US$428,795) 40% of net worth of subsidiary $12,477,947 (US$428,795) 40% of net worth of subsidiary $12,477,947 (US$428,795)
2	U-Ming Hong Kong	ITG-U-Ming Shipping	Other receivables - related parties	Y	42,777 (US$ 1,470)	42,777 (US$ 1,470)	27,936 (US$ 960)	-	Short-term financing	-	Short-term financing	-	-	-	30% of net worth of subsidiary $2,473,490 (US$85,000)	40% of net worth of subsidiary $3,297,986 (US$113,333)

Note a: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$29.1 as of September 30, 2020.
Note b: 1. The total amount available from U-Ming Marine Transport Corporation and its domestic subsidiaries for financing shall not exceed 50% of the borrower’s net worth per their most recent financial statements, the total financing amount for borrowers with short-term financing needs shall not exceed 15% of the borrower’s net worth, and the individual financing amount to each of such borrowers shall not exceed 5% of the borrower’s net worth.
The total amount available for financing from U-Ming (Singapore), U-Ming (Hong Kong), and foreign subsidiaries shall not exceed 50% of the net worth of the borrower, the total financing amount for borrowers with short-term financing needs shall not exceed 40% of the net worth of the borrower, and the individual amount available for financing to each of such borrowers shall not exceed 30% of the net worth of the borrower.

Note c: The financing amounts listed in Table 1 pertains only to the actual amounts utilized, and does not include the share of the loss of associates accounted for using the equity method of NT$87,053 thousand (US$2,992 thousand) offset against long-term receivables - related parties.

54 -

TABLE 2

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note a)	Maximum Amount Endorsed/ Guaranteed During the Period (Note a)	Ending Balance (Note a)	Actual Amount Borrowed (Note a)	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Amount to Net Equity in Latest Financial Statement	Aggregate Endorsement/ Guarantee Limit (Notes a and b)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given On Behalf of Companies in Mainland China
		Name	Relationship
0	U-Ming Marine Transport Corporation	U-Ming Singapore U-Ming Hong Kong	A subsidiary A subsidiary	50% of net worth of the Company $11,438,260 (US$393,067) 50% of net worth of the Company $11,438,260 (US$393,067)	$ 7,140,155 (US$ 245,366) 646,020 (US$ 22,200)	$ 5,275,275 (US$ 181,281) 632,052 (US$ 21,720)	$ 5,275,275 (US$ 181,281) 632,052 (US$ 21,720)	$ - -	23.06% 2.76%	100% of net worth of the Company $22,876,519 (US$786,135) Net worth of the Company $22,876,519 (US$786,135)	Y Y	- -	- -
1	U-Ming Singapore	Winyield	An investee accounted for using the equity method by subsidiary	50% of net worth of the subsidiary $15,597,434 (US$535,994)	86,573 (US$ 2,975)	75,114 (US$ 2,581)	75,114 (US$ 2,581)	-	0.24%	100% of net worth of the subsidiary $31,194,867 (US$1,071,989)	-	-	-
2	Yue-Li	Da Ju Fiber	The subsidiary is its supervisor	50% of net worth of the subsidiary $1,529,640 (US$52,565)	116,280 (US$ 3,996)	116,280 (US$ 3,996)	23,256 (US$ 799)	-	0.76%	100% of net worth of the subsidiary $3,059,280 (US$105,130)	-	-	-

Note a: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$29.1 as of September 30, 2020.

Note b: The total amount available for endorsements/guarantees to external parties provided by U-Ming shall not exceed the current net worth of the entity, and the individual amount available to each entity shall not exceed 50% of the net worth of the entity. The same restrictions apply to the entity’s subsidiaries.

55 -

TABLE 3

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD SEPTEMBER 30, 2020

(In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		September 30, 2020	September 30, 2020	September 30, 2020				Note	Note	Limit
				Shares/Units (In Thousands)	Carrying Value		Percentage of Ownership (%)	Fair Value (Note c)		Shares Pledged as Collateral (In Thousands) (Note b)	Value of Pledged or Mortgaged Assets
					NT$	US$ (Note 6)		NT$	US$ (Note 6)		NT$	US$ (Note 6)
U-Ming Marine Transport Corporation Yue-Li	Common stocks Far Eastern International Bank Far Eastern New Century Corporation Asia Cement Corporation Far EasTone Telecommunications Co., Ltd. Oriental Union Chemical Corp., Far Eastern Department Stores Ltd. Yue Yuan Investment Corporation Common stocks Far Eastern International Bank Asia Cement Corporation Oriental Union Chemical Corp. CSBC Corporation, Taiwan Far Eastern Department Stores Ltd. Far Eastern New Century Corporation Far EasTone Telecommunications Co., Ltd. Everest Textile Co., Ltd. Da Ju Fiber Co., Ltd. Phison Electronics Corp. GIGA-BYTE Technology Co., Ltd..	The chairman of the Company is its vice-chairman The chairman is the same The major stockholder The chairman is the same The chairman is the same The chairman is the same An investee accounted for using the equity method by major stockholder The chairman of the parent company is its vice-chairman The major stockholder of the parent company The chairman of the parent company is the same The subsidiary is its director The chairman of the parent company is the same The chairman of the parent company is the same The chairman of the parent company is the same The chairman of the parent company is its director The subsidiary is its supervisor None None	Financial assets at fair value through other comprehensive income - current Same as above Same as above Same as above Same as above Same as above Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - current Same as above Same as above Same as above Same as above Same as above Same as above Same as above Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Same as above	80,989 31,180 1,793 331 99 4 91,487 151,236 13,240 4,862 2,652 1,769 1,516 2 5 29,937 86 15	$ 830,141 788,866 74,409 20,191 1,597 107 869,759 1,550,171 549,464 78,518 63,923 43,164 38,349 112 50 810,785 22,747 755	$ 28,527 27,109 2,557 694 55 4 29,889 53,270 18,882 2,698 2,197 1,483 1,318 4 2 27,862 782 26	2 1 - - - - 18 4 - 1 1 - - - - 19 - -	$ 830,141 788,866 74,409 20,191 1,597 107 869,759 1,550,171 549,464 78,518 63,923 43,164 38,349 112 50 810,785 22,747 755	$ 28,527 27,109 2,557 694 55 4 29,889 53,270 18,882 2,698 2,197 1,483 1,318 4 2 27,862 782 26	- 10,000 1,500 - - - - 94,166 10,600 2,000 - - - - - - - -	$ - 253,000 62,250 - - - - 965,200 439,900 32,300 - - - - - - - -	$ - 8,694 2,139 - - - - 33,168 15,117 1,110 - - - - - - - -	- (Note a) (Note a) - - - - (Note a) (Note a) (Note a) - - - - - - - -
													(Continued)

56 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		September 30, 2020	September 30, 2020	September 30, 2020				Note	Note	Limit
				Shares/Units (In Thousands)	Carrying Value		Percentage of Ownership (%)	Fair Value (Note c)		Shares Pledged as Collateral (In Thousands) (Note b)	Value of Pledged or Mortgaged Assets
					NT$	US$ (Note 6)		NT$	US$ (Note 6)		NT$	US$ (Note 6)
Yue-Tung U-Ming Singapore U-Ming Hong Kong Falcon	Common stocks Far Eastern International Bank Far Eastern New Century Corporation Asia Cement Corporation Far EasTone Telecommunications Co., Ltd. Ding Shen Investment Co., Ltd. Yue Yuan Investment Corporation Beneficiary certificates Opas Fund Segregated Portfolio Tranche A Hutchison Port Holdings Trust Beneficiary certificates Opas Fund Segregated Portfolio Tranche A Opas Fund Segregated Portfolio Tranche C Common stocks Asia Cement (China) Holdings Corporation China Sanshui Cement Group Ltd. Bonds Lloyds Bank Plc Bond BNP Paribas Bond Societe Generale Bond Standard Chartered Bond Lloyds Bank Plc Bond BNP Paribas Bond Societe Generale Bond Standard Chartered Bond	The chairman of the parent company is its vice-chairman The chairman of the parent company is the same The major stockholder of the parent company The chairman of the parent company is the same The subsidiary is its director An investee accounted for using equity method by major stockholder of the parent company Related party in substance None Related party in substance Related party in substance The major stockholder of parent company is the same The major stockholder of parent company is the same None None None None None None None None	Financial assets at fair value through other comprehensive income - current Same as above Same as above Same as above Financial assets at fair value through other comprehensive income - non-current Same as above Financial assets at fair value through profit or loss - current Same as above Financial assets at fair value through profit or loss - current Same as above Financial assets at fair value through other comprehensive income - current Same as above Financial assets at amortized cost - current Same as above Same as above Same as above Financial assets at amortized cost - non-current Same as above Same as above Same as above	134,165 8,057 7,628 510 40,329 9,537 27 8,050 1 8 16,701 1,691 - - - - - - - -	$ 1,375,196 203,846 316,581 31,110 270,896 90,666 952,881 38,418 26,433 449,378 426,946 13,331 1,005 557 565 3,171 92,246 61,272 60,647 84,668	$ 47,258 7,005 10,879 1,069 9,309 3,116 32,745 1,320 908 15,443 14,672 458 35 19 19 109 3,170 2,106 2,084 2,910	4 - - - 18 2 - - - - - - - - - - - - - -	$ 1,375,196 203,846 316,581 31,110 270,896 90,666 952,881 38,418 26,433 449,378 426,946 13,331 1,005 557 565 3,171 92,246 61,272 60,647 84,668	$ 47,258 7,005 10,879 1,069 9,309 3,116 32,745 1,320 908 15,443 14,672 458 35 19 19 109 3,170 2,106 2,084 2,910	11,282 8,000 7,585 500 - - - - - - - - - - - - - - - -	$ 115,645 202,400 314,778 30,500 - - - - - - - - - - - - - - - -	$ 3,974 6,955 10,817 1,048 - - - - - - - - - - - - - - - -	(Note a) (Note a) (Note a) (Note a) - - - - - - - - - - - - - - - -

Note a: They cannot be traded in pledged period.

Note b: They are pledged as collateral for issuing commercial paper and credit line of bank loans.

Note c: Fair value are determined as follows: (a) listed stock closing price on September 30, 2020; (b) the fair value measurement of unlisted stocks.

Note d: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$29.1 as of September 30, 2020.

(Concluded)

57 -

TABLE 4

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

(In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

Company Name	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Note/Accounts (Payable) or Receivable	Note/Accounts (Payable) or Receivable	Note/Accounts (Payable) or Receivable	Note
			Purchase/ (Sale)	Amount		% to Total	Payment Terms	Unit Price	Payment Terms	Ending	Balance	% to Total
				NT$	US$ (Note 6)					NT$	US$ (Note 6)
U-Ming Marine Transport Corporation U-Ming Singapore	Asia Cement U-Ming Singapore Asia Cement U-Ming Marine Transport Corporation	The major shareholder Subsidiary The major shareholder of the parent company The parent company	Sales Sales Sales Purchase	$ (394,309) (192,247) (161,012) 192,247	$ (13,550) (6,606) (5,533) 6,606	(50) (24) (4) 4	Upon completion of loading, within a month - Upon completion of loading, within 8 days -	ad hoc basis - ad hoc basis -	ad hoc basis - ad hoc basis -	$ 35,541 99 - (99)	$ 1,221 3 - (3)	56 - - -	- - - -

Note: The foreign-currency amounts of payables and receivables were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$29.1 as of September 30, 2020; the foreign-currency amount of profit and loss items were translated into New Taiwan dollars at the average exchange rate of US$1=NT$29.817 for the nine months ended September 30, 2020.

58 -

TABLE 5

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 30, 2020

(In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
U-Ming Singapore	Winyield	An investee accounted for using the equity method by a subsidiary	Long-term receivable - related parties $610,894 (US$20,993)	-	$ -	-	$ -	$ -

Note: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$29.1 as of September 30, 2020.

59 -

TABLE 6

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

Number	Company Name	Counterparty	Relationship (Note)		Transactions Details	Transactions Details
				Account	Amount (New Taiwan Dollars)	Amount (U.S. Dollars, Note 6)	Trading Terms	Percentage to Consolidated Total Operating Revenues or Total Assets
0	U-Ming Marine Transport Corporation	U-Ming Singapore	1 1 1 1	Freight revenue Other revenue Other receivables Prepaid expense	$ 192,247 19,981 20,802 17,120	$ 6,606 687 715 588	- - - -	3 - - -
1	U-Ming Hong Kong	U-Ming Singapore	3	Freight revenue	78,830	2,709	-	1
2	Eagle	Falcon	3	Freight revenue	12,835	441	-	-
3	U-Ming Xiamen	U-Ming Singapore	3	Freight revenue	44,681	1,535	-	1

Note: 1. Parent to subsidiary.
Subsidiary to parent.
Between subsidiaries.
60 -

TABLE 7

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Original Investment Amount	Original Investment Amount		As of September 30, 2020	As of September 30, 2020	As of September 30, 2020	Net Income (Loss) of the Investee	Net Income (Loss) of the Investee	Share of Profits (Loss)	Share of Profits (Loss)	Note
				September 30, 2020		December 31, 2019		Number of Shares (In Thousands)	Percentage of Ownership	Carrying Amount
				NT$	US$ (Note 6)	NT$	US$ (Note 6)			NT$	US$ (Note 6)	NT$	US$ (Note 6)	NT$	US$ (Note 6)
U-Ming Marine Transport Corporation Yue-Tung U-Ming Singapore U-Ming Hong Kong Falcon	U-Ming Singapore U-Ming Hong Kong Yue-Li Yue-Tung Global Energy Maritime Co., Ltd. Yue Ding Enterprise Corporation Ding Ding Consultation Corporation Cape Asia (III) Cape Asia Winyield Eagle Falcon Yue-Li Yue-Tung OSPL ITG-Uming Shipping Drive Catalyst SPC (SP Tranche One) Drive Catalyst SPC (SP Tranche Three) Opas Fund Segregated Portfolio Company Drive Catalyst SPC	Singapore Hong Kong Taipei Taipei Taipei Taipei Taipei Marshall Islands Hong Kong Hong Kong Singapore British Virgin Islands Taipei Taipei Marshall Islands Hong Kong Cayman Islands Cayman Islands Cayman Islands Cayman Islands	Transport Transport Investment Investment Transport Bulk and retail sale of decorations and commodity Consultant Transport Transport Transport Transport Investment Investment Investment Transport Transport Investment Investment Investment Investment	$ 2,649,382 121,923 1,500,000 1,360,400 2,004,000 186,080 50,000 2 3 - - 661,080 700,000 489,600 474,692 19 122,860 119,920 1,624 491	$ 91,044 4,190 51,546 46,749 68,866 6,395 1,718 - - - - 22,718 24,055 16,825 16,312 1 4,222 4,121 56 17	$ 2,649,382 121,923 1,500,000 1,360,400 2,004,000 186,080 50,000 2 3 - - 661,080 700,000 489,600 474,692 19 122,860 119,920 1,624 491	$ 91,044 4,190 51,546 46,749 68,866 6,395 1,718 - - - - 22,718 24,055 16,825 16,312 1 4,222 4,121 56 17	150,146 27,000 150,000 136,040 205,410 30,245 3,340 - - - - - 70,000 48,960 - 5 4 4 - -	100 100 68 74 40 25 40 17 17 50 100 100 32 26 100 49 25 25 33 33	$ 31,194,867 8,244,966 2,085,827 1,950,072 2,025,874 434,909 74,058 78,909 110 - 89,580 965,765 973,453 701,819 1,494,249 41,180 115,372 128,191 1,440 480	$ 1,071,989 283,332 71,678 67,013 69,618 14,945 2,545 2,712 4 - 3,078 33,188 33,452 24,117 51,349 1,415 3,965 4,405 49 16	$ (66,652 ) 237,607 114,349 157,651 206,595 91,683 27,066 (3,603 ) 107 (8,023 ) 7,453 29,508 114,349 157,651 106,324 26,518 (7,917) (5,357 ) 33 (1 )	$ (2,290 ) 8,165 3,930 5,418 7,099 3,151 930 (124 ) 4 (276) 256 1,014 3,930 5,418 3,654 911 (272) (184 ) 1 -	$ (66,652 ) 237,607 77,965 115,929 82,638 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ (2,290 ) 8,165 2,679 3,984 2,840 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	A subsidiary A subsidiary A subsidiary A subsidiary An investee accounted for using equity method An investee accounted for using equity method An investee accounted for using equity method An investee accounted for using equity method An investee accounted for using equity method An investee accounted for using equity method An indirect subsidiary An indirect subsidiary A subsidiary A subsidiary An indirect subsidiary An investee accounted for using equity method An investee accounted for using equity method An investee accounted for using equity method An investee accounted for using equity method An investee accounted for using equity method

Note: The foreign currency amounts of original investment were translated into New Taiwan dollars based on historical exchange rate; the foreign currency amounts of carrying value were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$29.1 as of September 30, 2020; the foreign currency amount of profit and loss items were translated into New Taiwan dollars at an average exchange rate of US$1=NT$29.817 for the nine months ended September 30, 2020.

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TABLE 8

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (In Thousands of New Taiwan Dollars and U.S. Dollars, Note 6)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2020	Investment Flows	Investment Flows	Accumulated Outward Remittance for Investments from Taiwan as of September 30, 2020	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note b)	Carrying Amount as of September 30, 2020	Accumulated Repatriation of Investment Income as of September 30, 2020
						Outward	Inward
U-Ming Xiamen ITG-Uming Xiamen	Transport Transport		$ 29,579 (US$ 1,000) 45,684 (US$ 1,568)	(Note a) (Note a)	$ 29,579 (US$ 1,000) 45,684 (US$ 1,568)	$ - -	$ - -	$ 29,579 (US$ 1,000) 45,684 (US$ 1,568)	$ 2,883 (US$ 99) 7,076 (US$ 243)	100 49	$ 2,883 (US$ 99) 3,472 (US$ 119)	$ 39,961 (US$ 1,373) 42,122 (US$ 1,447)	$ - -

Accumulated Outward		Investment Amounts		Upper Limit	on the Amount of
Remittance for Investments in Mainland China as of September 30, 2020		Authorized by the Investment Commission, MOEA		Investments Stipulated by the Investment Commission, MOEA
$75,263 (US$2,568)		$75,263 (US$2,568)		$13,725,911 (US$471,681)

Note a: The investment in the target company in mainland China was made by investing in an existing company, U-Ming Hong Kong, which was incorporated in a third area (other than Taiwan and mainland China).

Note b: The investment gain (loss) recognized was based on the financial statements not reviewed by an accountant.

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TABLE 9

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES INFORMATION OF MAJOR SHAREHOLDERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Asia Cement Corporation	331,701,152	39.25

Note: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

63 -

AI assistant

U-MING — Interim / Quarterly Report 2020

52160_rns_2020-11-19_6937bb0c-3ccc-4079-a5e0-74dbe9637b53.pdf

U-Ming Marine Transport Corporation and Subsidiaries

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of U.S. Dollars, Note 6)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of U.S. Dollars, Note 6)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

b. Basis of consolidation

2) Taxation

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. TRANSLATION INTO U.S. DOLLARS

7. CASH AND CASH EQUIVALENTS

8. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

10. TRADE RECEIVABLES

Trade Receivables

September 30, 2020

New Taiwan dollars

September 30, 2019

New Taiwan dollars

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

2020

2019

15. BORROWINGS

a. Short-term loans

c. Long-term borrowings

16. OTHER PAYABLES

17. RETIREMENT BENEFIT PLANS

18. EQUITY

b. Capital surplus

c. Retained earnings and dividend policy

d. Other equity items

New Taiwan dollars

U.S. dollars (Note 6)

19. REVENUE

a. Disaggregation of revenue

For the Three Months Ended September 30

b. Contract balances

20. NET PROFIT

a. Other operating revenue

b. Finance costs

d. Employee benefits expense

21. INCOME TAXES

22. EARNINGS PER SHARE

a. Net profit for the year

23. FINANCIAL INSTRUMENTS

c. Categories of financial instruments

U-MING Interim / Quarterly Report 2020