Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

U-MING Interim / Quarterly Report 2021

Nov 23, 2021

52160_rns_2021-11-23_9e00caea-6eef-4e90-a974-5b3b2a7d17c9.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

U-Ming Marine Transport Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2021 and 2020

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders U-Ming Marine Transport Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of U-Ming Marine Transport Corporation (the “Company”) and its subsidiaries (collectively, the “Group”) as of March 31, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended March 31, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies “(collectively referred to as the consolidated financial statements)”. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2021 and 2020, the unreviewed assets amounted to NT$9,183,261 thousand (US$321,824 thousand) and NT$8,835,766 thousand (US$292,333 thousand), respectively, (15.01% and 14.54% of the consolidated assets, respectively), and the unreviewed liabilities amounted to NT$452,710 thousand (US$15,865 thousand) and NT$548,377 thousand (US$18,143 thousand), respectively, (1.21% and 1.52% of the consolidated liabilities, respectively). The unreviewed comprehensive income (losses) for the three months ended March 31, 2021 and 2020 were NT$(122,046) thousand (US$(4,277) thousand) and NT$(361,526) thousand (US$(11,961) thousand), respectively, representing (24.40)% and 17.38% of the consolidated comprehensive income, respectively.

  • 1 -

As stated in Note 12 to the consolidated financial statements, the investments accounted for using the equity method (including losses offset against long-term receivables - related parties) as of March 31, 2021 and 2020 were NT$3,503,013 thousand (US$122,762 thousand) and NT$2,843,337 thousand (US$94,072 thousand), respectively, and the related investment income (loss) for the three months ended March 31, 2021 and 2020 were NT$34,526 thousand (US$1,210 thousand) and NT$15,196 thousand (US$503 thousand), respectively. These abovementioned amounts of the investments accounted for using the equity method and the related investees’ information were based on unreviewed financial statements. Further, as disclosed in Note 29 to the consolidated financial statements, other information about the non-significant subsidiaries, associates and joint ventures accounted for using the equity method as stated above were also not reviewed.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and the financial statements of the investments accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the consolidated financial position of the Group as of March 31, 2021 and 2020, its consolidated financial performance for the three months ended March 31, 2021 and 2020, and its consolidated cash flows for the three months ended March 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Wen-Chin Lin and Yi-Wen Wang.

Deloitte & Touche Taipei, Taiwan Republic of China

May 7, 2021

Notice to Readers

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

  • 2 -

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 and 24)
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)

Total non-current assets

TOTAL

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 15 and 25)

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
 March 31, 2021
(Reviewed)
Amount
%
$ 13,233,875
22
1,653,976
3
7,028,877
12
176,629
-
275,269
-
309,663
1
85,366
-
92,508
-
515,115
1

186,836

-

23,558,114
39


2,217,881
4
766,426
1
3,591,580
6
28,676,673
47
90,222
-
6,803
-
1,446,913
2
69,184
-

742,176

1

37,607,858
61

$ 61,165,972
100

$ 6,021,000
10
8,113,847
13
243,043
-
252,744
1
790,272
1
46,678
-
3,115,953
5

540,954

1

19,124,491
31

17,950,633
30
174,376
-
106,680
-

134,353

-

18,366,042
30

37,490,533
61


8,450,557
14


115,164

-

6,876,575
11

9,098,995
15

15,975,570
26


(865,852)

(1)

23,675,439
39

$ 61,165,972
100
 December 31, 2020
(Audited)
Amount
%
$ 13,352,688
22

1,630,592
3

6,849,625
11

157,658
-

172,667
-

328,907
1

93,248
-

108,204
-

398,671
1

161,431

-

23,253,691
38


2,283,860
4

593,301
1

3,547,354
6
29,114,345
48

47,038
-

8,101
-

986,457
2

65,197
-

743,143

1

37,388,796
62

$ 60,642,487
100

$ 5,643,000
9

7,396,647
12

307,897
1

149,213
-

811,571
1

47,362
-

3,820,780
6

213,492

1

18,389,962
30

18,648,757
31

172,473
1

112,158
-

143,643

-

19,077,031
32

37,466,993
62


8,450,557
14


115,163

-


6,876,575
11

8,755,996
15

15,632,571
26

(1,022,797)

(2)

23,175,494
38

$ 60,642,487
100
 March 31, 2020
(Reviewed)













































































































Amount
%
$ 16,319,412
27

1,232,187
2

6,132,667
10

95,557
-

112,381
-

287,244
1

95,250
-

167,492
-

462,254
1

360,592

1
25,265,036
42

1,963,435
3

223,750
-

2,924,878
5
27,815,458
46

54,836
-

11,223
-

1,661,955
3

125,901
-

736,783

1
35,518,219
58
$ 60,783,255
100
$ 7,045,000
12

3,964,038
6

434,202
1

206,391
-

1,002,277
2

105,559
-

3,682,157
6

175,672

-
16,615,296
27
18,924,402
31

176,257
1

137,461
-

167,484

-
19,405,604
32
36,020,900
59

8,450,557
14

115,165

-

6,693,492
11

9,280,833
15
15,974,325
26

222,308

1
24,762,355
41
$ 60,783,255
100

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

  • 3 -

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 and 24)
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)

Total non-current assets

TOTAL

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 15 and 25)

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
 March 31, 2021
(Reviewed)
Amount
%
$ 463,777
22
57,963
3
246,325
12
6,190
-
9,647
-
10,852
1
2,992
-
3,242
-
18,052
1

6,547

-


825,587
39


77,725
4
26,859
1
125,866
6
1,004,965
47
3,162
-
238
-
50,707
2
2,424
-

26,009

1


1,317,955
61

$ 2,143,542
100

$ 211,004
10
284,347
13
8,517
-
8,857
1
27,695
1
1,636
-
109,198
5

18,958

1


670,212
31

629,074
30
6,111
-
3,739
-

4,708

-


643,632
30


1,313,844
61


296,147
14


4,036

-

240,987
11

318,871
15


559,858
26


(30,343)

(1)


829,698
39

$ 2,143,542
100
 December 31, 2020
(Audited)
Amount
%
$ 468,844
22

57,254
3

240,507
11

5,536
-

6,063
-

11,549
1

3,274
-

3,799
-

13,998
1

5,668

-


816,492
38


80,192
4

20,832
1

124,556
6

1,022,273
48

1,652
-

284
-

34,637
2

2,289
-

26,094

1


1,312,809
62

$ 2,129,301
100

$ 198,139
9

259,714
12

10,811
1

5,240
-

28,496
1

1,663
-

134,157
6

7,495

1


645,715
30


654,802
31

6,056
1

3,938
-

5,044

-


669,840
32


1,315,555
62


296,719
14


4,044

-


241,453
11

307,444
15


548,897
26


(35,914)

(2)


813,746
38

$ 2,129,301
100
 March 31, 2020
(Reviewed)































































Amount
$ 468,844


57,254

240,507


5,536

6,063

11,549

3,274

3,799

13,998

5,668


816,492


80,192

20,832

124,556

1,022,273


1,652

284

34,637

2,289

26,094


1,312,809

$ 2,129,301

$ 198,139

259,714


10,811

5,240

28,496

1,663

134,157

7,495


645,715


654,802


6,056

3,938

5,044


669,840


1,315,555


296,719


4,044


241,453


307,444


548,897


(35,914)


813,746

$ 2,129,301











































Amount
%
$ 539,931
27

40,767
2

202,900
10

3,162
-

3,718
-

9,504
1

3,151
-

5,542
-

15,294
1

11,930

1

835,899
42

64,961
3

7,403
-

96,770
5

920,280
46

1,814
-

371
-

54,986
3

4,165
-

24,377

1

1,175,127
58
$ 2,011,026
100
$ 233,085
12

131,151
6

14,366
1

6,828
-

33,161
2

3,492
-

121,825
6

5,812

-

549,720
27

626,118
31

5,832
1

4,548
-

5,541

-

642,039
32

1,191,759
59

279,588
14

3,810

-

221,456
11

307,058
15

528,514
26

7,355

1

819,267
41
$ 2,011,026
100

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

  • 4 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Losses) Per Share) (Reviewed, Not Audited)

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 (LOSS) FROM OPERATIONS

NON-OPERATING INCOME AND EXPENSES
Other income (Note 24)
Finance costs (Note 20)
Interest income
Gain on disposal of property, plant and equipment
Net gain on sale of investment
Net (loss) gain on foreign currency exchange (Note
28)
Share of the profit or loss of associates and joint
ventures (Note 12)
Other losses
Net gain (loss) on financial assets and liabilities at
fair value through profit or loss

Total non-operating income and expenses

PROFIT (LOSS) BEFORE INCOME TAX
INCOME TAX EXPENSE (Note 21)

NET PROFIT (LOSS) FOR THE YEAR
 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
Amount
%
$ 2,461,827 100

688

-


2,462,515
100


2,103,933
86

358,582 14

126,195

5


232,387

9

9,563
-
(88,824) (3)
27,793
1
59,402
3
5,661
-
(4,322)
-
28,045
1
(3,276)
-

79,389

3


113,431

5

345,818 14

3,463

-


342,355
14
 2020




























Amount
$ 1,902,473

-


1,902,473


1,868,507


33,966

97,863


(63,897)


11,779

(125,334)

105,479

-

6,008

74,924

32,906

(4,275)

(422,183)


(320,696)


(384,593)

2,552


(387,145)
 %
100

-
100
98

2

5
(3)

1
(7)

5

-

-

4

2

-
(22)
(17)
(20)

-
(20)

(Continued)

  • 5 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Losses) Per Share) (Reviewed, Not Audited)

OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to
profit or loss:
Unrealized gain on investments in equity
instruments at fair value through other
comprehensive income (loss)

Share of the other comprehensive income (loss) of
associates accounted for using the equity
method
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on the financial statements
of translating foreign operations
Share of the other comprehensive income of
associates accounted for using the equity
method

Other comprehensive income (loss) for the year,
net of income tax

TOTAL COMPREHENSIVE (LOSS) INCOME FOR
THE YEAR

EARNINGS (LOSSES) PER SHARE (Note 22)
Basic
Diluted		 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
Amount
%
$ 77,429
3
6,679
-
74,014
3

(198)

-


157,924

6

$ 500,279
20

$ 0.41
$ 0.41		 2020








Amount
$ (1,988,838)

(32,259)

313,416

14,549


(1,693,132)

$ (2,080,277)

$ (0.46)
$ (0.46)		 %
(104)
(2)
16

1
(89)
(109)
$



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

(Concluded)

  • 6 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of U.S. Dollars, Except Earnings (Losses) Per Share, Note 6) (Reviewed, Not Audited)

OPERATING REVENUE
Freight revenue (Notes 19 and 24)

Other operating revenue (Note 20)

Total operating revenue

OPERATING COSTS
Freight cost (Notes 20)

GROSS PROFIT
OPERATING EXPENSES (Notes 20 and 24)

PROFIT(LOSS) FROM OPERATIONS

NON-OPERATING INCOME AND EXPENSES
Other income (Note 24)
Finance costs (Note 20)
Interest income
Gain on disposal of property, plant and equipment
Net gain on sale of investment
Net (loss) gain on foreign currency exchange (Note
28)
Share of the profit or loss of associates and joint
ventures (Note 12)
Other losses
Net gain (loss) on financial assets and liabilities at
fair value through profit or loss

Total non-operating income and expenses

PROFIT (LOSS) BEFORE INCOME TAX
INCOME TAX EXPENSE (Note 21)

NET PROFIT (LOSS) FOR THE YEAR
 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
Amount
%
$ 86,274 100

24

-


86,298
100


73,732
86

12,566 14

4,422

5


8,144

9

335
-
(3,113) (3)
974
1
2,082
3
198
-
(151)
-
983
1
(115)
-

2,782

3


3,975

5

12,119 14

121

-


11,998
14
 2020




























Amount
$ 62,944

-


62,944


61,820


1,124

3,238


(2,114)


390

(4,147)

3,490

-

199

2,479

1,088

(141)

(13,968)


(10,610)


(12,724)

84


(12,808)
 %
100

-
100
98

2

5
(3)

1
(7)

5

-

-

4

2

-
(22)
(17)
(20)

-
(20)

(Continued)

  • 7 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of U.S. Dollars, Except Earnings (Losses) Per Share, Note 6) (Reviewed, Not Audited)

OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to
profit or loss:
Unrealized gain on investments in equity
instruments at fair value through other
comprehensive income (loss)

Share of the other comprehensive income (loss) of
associates accounted for using the equity
method
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on the financial statements
of translating foreign operations
Share of the other comprehensive income of
associates accounted for using the equity
method

Other comprehensive income (loss) for the year,
net of income tax

TOTAL COMPREHENSIVE (LOSS) INCOME FOR
THE YEAR

EARNINGS (LOSSES) PER SHARE (Note 22)
Basic
Diluted
 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
Amount
%
$ 2,713
3
234
-
2,594
3

(7)

-


5,534

6

$ 17,532
20

$ 0.0144
$ 0.0144
 2020










Amount
$ (65,801)

(1,067)

10,369

481


(56,018)

$ (68,826)

$ (0.015)
$ (0.015)		 %
(104)
(2)
16

1
(89)
(109)
$ $


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

(Concluded)

  • 8 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Common Share
Capital
Capital Surplus
BALANCE AT JANUARY 1, 2020
$ 8,450,557
$ 115,152
Changes in capital surplus from investments in associates and joint ventures
accounted for using the equity method
-
14
Net profit for the three months ended March 31, 2020
-
-
Other comprehensive income for the three months ended March 31, 2020, net
of income tax

-

-
Total comprehensive income for the three months ended March 31, 2020

-

-
Dividends claimed after over prescription by shareholders
-
(1)
Changes from investments in associates and joint ventures accounted for
using the equity method

-

-
BALANCE AT MARCH 31, 2020
$ 8,450,557
$ 115,165
BALANCE AT JANUARY 1, 2021
$ 8,450,557
$ 115,163
Changes in capital surplus from investments in associates and joint ventures
accounted for using the equity method
-
1
Net loss for the three months ended March 31, 2021
-
-
Other comprehensive income for t the three months ended March 31, 2021,
net of income tax

-

-
Total comprehensive income for the three months ended March 31, 2021

-

-
Disposal of investments in equity instruments designated as at fair value
through other comprehensive income by associates
-
-
Change from investments in associates and joint ventures accounted for using
the equity method

-

-
BALANCE AT MARCH 31, 2021
$ 8,450,557
$ 115,164		 Retained Earnings
Legal Reserve
Unappropriated
Earnings
$ 6,693,492
$ 9,669,918
-
-
-
(387,145)

-

-

-

(387,145)
-
-

-

(1,940)
$ 6,693,492
$ 9,280,833
$ 6,876,575
$ 8,755,996
-
-
-
342,355

-

293

-

342,648
-
686

-

(335)
$ 6,876,575
$ 9,098,995		 Other Equity Total
$ 1,915,440

-
-

(1,693,132)


(1,693,132)

-

-

$ 222,308

$ (1,022,797)

-
-

157,631


157,631

(686 )

-

$ (865,852)
 Total Equity
$ 26,844,559
14
(387,145)

(1,693,132)
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
$ (2,330,970 )
$ 4,246,275
$ 2
$ 133

-
-
-
-
-
-
-
-

327,966

(2,021,109)

(1)

12


327,966

(2,021,109)

(1)

12

-
-
-
-

-

-

-

-

$ (2,003,004)
$ 2,225,166
$ 1
$ 145

$ (4,360,468 )
$ 3,337,525
$ 1
$ 145

-
-
-
-
-
-
-
-

73,816

83,813

-

2


73,816

83,813

-

2

-
(686 )
-
-

-

-

-

-

$ (4,286,652)
$ 3,420,652
$ 1
$ 147











(2,080,277)

(1)

(1,940)
$ 24,762,355
$ 23,175,494
1
342,355

157,924

500,279
-

(335)
$ 23,675,439

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

  • 9 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of U.S. Dollars, Note 6) (Reviewed, Not Audited)

Common Share
Capital
Capital Surplus
BALANCE AT JANUARY 1, 2020
$ 281,873
$ 3,841
Changes in capital surplus from investments in associates and joint ventures
accounted for using the equity method
-
-
Net profit for the three months ended March 31, 2020
-
-
Other comprehensive income for the three months ended March 31, 2020, net
of income tax

-

-
Total comprehensive income for the three months ended March 31, 2020

-

-
Dividends claimed after over prescription by shareholders
-
-
Changes from investments in associates and joint ventures accounted for
using the equity method

-

-
Change in translation adjustments

(2,285)

(31)
BALANCE AT MARCH 31, 2020
$ 279,588
$ 3,810
BALANCE AT JANUARY 1, 2021
$ 296,719
$ 4,044
Changes in capital surplus from investments in associates and joint ventures
accounted for using the equity method

-

-
Net loss for the three months ended March 31, 2021
-
-
Other comprehensive income for t the three months ended March 31, 2021,
net of income tax

-

-
Total comprehensive income for the three months ended March 31, 2021

-

-
Disposal of investments in equity instruments designated as at fair value
through other comprehensive income by associates
-
-
Change from investments in associates and joint ventures accounted for using
the equity method
-
-
Changes in translation adjustments

(572)

(8)
BALANCE AT MARCH 31, 2021
$ 296,147
$ 4,036		 Retained Earnings
Legal Reserve
Unappropriated
Earnings
$ 223,265
$ 322,546
-
-
-
(12,808)

-

-

-

(12,808)
-
-

-

(64)

(1,809)

(2,616)
$ 221,456
$ 307,058
$ 241,453
$ 307,444

-

-
-
11,998

-

10

-

12,008
-
24
-
(12)

(466)

(593)
$ 240,987
$ 318,871		 Other Equity Total
$ 63,890

-
-

(56,018)


(56,018)

-

-


(517)

$ 7,355

$ (35,914)

-
-

5,524

5,524
(24)
-

71
$ (30,343)		 Total Equity
$ 895,415
-
(12,808)

(56,018)

(68,826)
-

(64)

(7,258)
$ 819,267
$ 813,746

-
11,998

5,534

17,532
-
(12)

(1,568)
$ 829,698
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
$ (77,751 )
$ 141,637
$ -
$ 4

-
-
-
-
-
-
-
-

10,851

(66,869)

-

-


10,851

(66,869)

-

-

-
-
-
-

-

-

-

-


630

(1,148)

-

1

$ (66,270)
$ 73,620
$ -
$ 5

$ (153,106)
$ 117,187
$ -
$ 5

-

-

-

-
-
-
-
-

2,587

2,937

-

-

2,587

2,937

-

-
-
(24)
-
-
-
-
-
-

295

(224)

-

-
$ (150,224)
$ 119,876
$ -
$ 5




















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

  • 10 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) before income tax

Adjustments for:
Depreciation expenses
Amortization expenses
Expected credit loss reversed on trade receivables
Net (gain) 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 loss (gain) 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
Purchase of financial assets at amortized cost
Purchase of property, plant and equipment		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31



2021
$ 345,818
583,489
6,667
(61)
(80,077)
88,824
(27,793)
-
(28,045)
(59,402)
7,804
(5,661)
(18,961)
(102,602)
27,186
520
(118,143)
(25,474)
103,531
(20,236)
327,462

(9,290)

995,556
42,969
-
(89,305)

(877)


948,343

(35,324)
(189,606)
(306,956)		 2020
$ (384,593)

581,419

3,984

-

422,183

125,334

(105,479)

(1,561)

(32,906)

-

(72,813)

(6,008)

525,572

112,355

(79,385)

2,880

99,277

(142,537)

17,830

2,820

(24,849)

(1,038)

1,042,485

171,914

1,561

(126,333)

(348)

1,089,279

(413,930)

(125,061)

(119,163)
(Continued)
  • 11 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Proceeds from disposal of property, plant and equipment

Increase in refundable deposits
Increase in financing provided - related parties
Payments for intangible assets
Increase in prepayments for equipment

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments) proceeds from short-term borrowings
Proceeds from short-term bills payable
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid to owners of the Company

Net cash (used in) generated from 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 Three Months Ended
March 31		 For the Three Months Ended
March 31







2021
$ 272,667
(3,973)
(5,672)
(4,151)

(501,378)


(774,393)

(22,000)
716,933
455,001
(1,467,688)

-


(317,754)


24,991

(118,813)

13,352,688

$ 13,233,875
 2020
$ -

(537)

-

-

(509,788)

(1,168,479)

545,000

759,000

941,907

(1,857,113)

(1)

388,793

130,577

440,170

15,879,242
$ 16,319,412

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

(Concluded)

  • 12 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of U.S. Dollars, Note 6) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) before income tax

Adjustments for:
Depreciation expenses
Amortization expenses
Expected credit loss reversed on trade receivables
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
Purchase of financial assets at amortized cost
Purchase of property, plant and equipment		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31



2021
$ 12,119

20,448
234
(2)
(2,806)
3,113
(974)
-
(983)
(2,082)
273
(198)
(664)
(3,596)
953
18
(4,140)
(893)
3,628
(709)
11,476

(326)

34,889
1,506
-
(3,130)

(31)


33,234

(1,238)
(6,645)
(10,757)		 2020
$ (12,724)
19,236
132
-
13,968
4,147
(3,490)
(52)
(1,089)
-
(2,409)
(199)
17,389
3,717
(2,626)
95
3,285
(4,716)
590
93
(822)

(34)
34,491
5,688
52
(4,180)

(12)

36,039
(13,695)
(4,138)
(3,942)
(Continued)
  • 13 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of U.S. Dollars, Note 6) (Reviewed, Not Audited)

Proceeds from disposal of property, plant and equipment

Increase in refundable deposits
Increase in financing provided - related parties
Payments for intangible assets
Increase in prepayments for equipment

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments) proceeds from short-term borrowings
Proceeds from short-term bills payable
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid to owners of the Company

Net cash (used in) generated from 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 Three Months Ended
March 31		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31







2021
$ 9,556

(139)
(199)
(145)

(17,571)


(27,138)

(771)
25,125
15,945
(51,435)

-


(11,136)


(27)

(5,067)

468,844

$ 463,777
 2020
$ -
(18)
-
-

(16,866)

(38,659)
18,031
25,111
31,163
(61,443)

1

12,863

27
10,270

529,661
$ 539,931

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

(Concluded)

  • 14 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars and U.S. Dollars, Unless Stated Otherwise)

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 May 7, 2021.

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 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 1 “Disclosure of Accounting Policies”

Amendments to IAS 8 “Definition of Accounting Estimates”

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)
To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 4)
January 1, 2023 (Note 5)
January 1, 2022 (Note 6)
January 1, 2022 (Note 7)

  • 15 -

  • 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 will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

  • Note 5: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

  • Note 6: 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 7: 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, 2020.

  • 16 -

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.

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, 2020.

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$28.535 to US$1.00, NT$28.48 to US$1.00 and NT$30.225 to US$1.00 published by the Bank of Taiwan as of March 31, 2021, December 31, 2020 and March 31, 2020, 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

 March 31, 2021
NT$
US$ (Note 6)
$ 551 $ 19
1,022,056
35,818
12,211,268

427,940

$ 13,233,875
$ 463,777
 December 31, 2020
NT$
US$ (Note 6)
$ 473 $ 17

582,427
20,450
12,769,788

448,377

$ 13,352,688
$ 468,844
 March 31, 2020 March 31, 2020










NT$
US$ (Note 6)
$ 232 $ 8

384,461
12,720
15,934,719

527,203
$ 16,319,412
$ 539,931

$ 539,931
  • 17 -

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)

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
 March 31, 2021
NT$
US$ (Note 6)
$ 30,953 $ 1,085
1,570,927
55,052

52,096

1,826

$ 1,653,976
$ 57,963

$ 12,153 $ 426

230,890

8,091

$ 243,043
$ 8,517
 December 31, 2020
NT$
US$ (Note 6)
$ 41,921 $ 1,472
1,557,353
54,682

31,318

1,100

$ 1,630,592
$ 57,254

$ 15,336 $ 538

292,561

10,273

$ 307,897
$ 10,811
 March 31, 2020




















NT$
US$ (Note 6)
$ - $ -
1,232,187
40,767

-

-
$ 1,232,187
$ 40,767
$ 123,756 $ 4,095

310,446

10,271
$ 434,202
$ 14,366

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 March 31, 2021 USD4,983/AUD6,004 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%:1.19% plus 1%:1.03% USD10,200/AUD14,847 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%:1.27% plus 1.05%:1.06% December 31, 2020 USD7,475/AUD9,005 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%:1.24% plus 1%:1.01% USD11,900/AUD17,322 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%:1.27% plus 1.05%:1.13% March 31, 2020 USD9,966/AUD12,007 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%: 2.12% plus 1%: 1.52% USD13,600/AUD19,796 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%: 2.87% plus 1.05%: 1.90%

  • 18 -

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
March 31, 2021
USD2,835 2022.07.20 1.36%
 3-month LIBOR: 0.2240%
USD2,730 2022.09.20 1.43%
 3-month LIBOR: 0.1866%
USD6,475 2022.10.25 1.18%
 3-month LIBOR: 0.2178%
USD8,269 2023.04.22 1.27%
 3-month LIBOR: 0.2224%
USD4,725 2023.06.05 1.90%
 3-month LIBOR: 0.1843%
USD4,725 2023.08.30 1.85%
 3-month LIBOR: 0.1898%
USD11,550 2023.10.30 1.89%
 3-month LIBOR: 0.2115%
USD12,495 2024.01.16 1.68%
 3-month LIBOR: 0.2245%
USD46,703 2027.08.25 2.865%
 3-month LIBOR: 0.1875%
USD50,295 2028.01.10 2.875%
 3-month LIBOR: 0.2340%
December 31, 2020
USD3,780 2022.07.20 1.36%
 3-month LIBOR: 0.2184%
USD3,640 2022.09.20 1.43%
 3-month LIBOR: 0.2386%
USD6,475 2022.10.25 1.18%
 3-month LIBOR: 0.2148%
USD8,269 2023.04.22 1.27%
 3-month LIBOR: 0.2158%
USD4,725 2023.06.05 1.90%
 3-month LIBOR: 0.2320%
USD5,670 2023.08.30 1.85%
 3-month LIBOR: 0.2244%
USD11,550 2023.10.30 1.89%
 3-month LIBOR: 0.2144%
USD14,578 2024.01.16 1.68%
 3-month LIBOR: 0.2241%
USD50,295 2027.08.25 2.865%
 3-month LIBOR: 0.2065%
USD50,295 2028.01.10 2.875%
 3-month LIBOR: not effective yet
USD1,291 2021.03.19 1.115%
 3-month LIBOR: 0.2386%
March 31, 2020
USD 4,725 2022.07.20 1.36%
 3-month LIBOR: 1.8191%
USD 4,550 2022.09.20 1.43%
 3-month LIBOR: 1.1158%
USD 9,713 2022.10.25 1.18%
 3-month LIBOR: 1.7941%
USD 11,576 2023.04.22 1.27%
 3-month LIBOR: 1.8021%
USD 6,615 2023.06.05 1.90%
 3-month LIBOR: 1.4628%
USD 6,615 2023.08.30 1.85%
 3-month LIBOR: 1.6133%
USD 15,400 2023.10.30 1.89%
 3-month LIBOR: 1.7695%
USD 16,660 2024.01.16 1.68%
 3-month LIBOR: 1.8479%
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 2,581 2021.03.19 1.115%
 3-month LIBOR: 1.1158%

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.

  • 19 -

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Equity Instruments
Current
Domestic listed shares
Foreign listed shares


Non-current
Domestic unlisted
shares
 March 31, 2021
NT$
US$ (Note 6)
$ 6,527,666
$ 228,760


501,211

17,565

$ 7,028,877
$ 246,325

$ 2,217,881
$ 77,725
 December 31, 2020
NT$
US$ (Note 6)
$ 6,404,490
$ 224,877


445,135

15,630

$ 6,849,625
$ 240,507

$ 2,283,860
$ 80,192
 March 31, 2020 March 31, 2020



NT$

$ 6,527,666


501,211

$ 7,028,877

$ 2,217,881







NT$

$ 5,604,681


527,986

$ 6,132,667

$ 1,963,435
 US$ (Note 6)
$ 185,432

17,468
$ 202,900
$ 64,961

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
 March 31, 2021
NT$
US$ (Note 6)
$ 310,163
$ 10,870


(500)

(18)

$ 309,663
$ 10,852

$ 85,366
$ 2,992
 December 31, 2020
NT$
US$ (Note 6)
$ 329,468
$ 11,569


(561)

(20)

$ 328,907
$ 11,549

$ 93,248
$ 3,274
 March 31, 2020











NT$
US$ (Note 6)
$ 287,839
$ 9,523

(595)

(19)
$ 287,244
$ 9,504
$ 95,250
$ 3,151

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.

  • 20 -

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.

March 31, 2021

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, 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
 0 to 30
Days
$ 268,112

-

$ 268,112

0 to 30
Days
$ 9,396

-

$ 9,396

0 to 30
Days
$ 270,139

-

$ 270,139

0 to 30
Days
$ 9,485


-

$ 9,485
 31 to 90
Days
$ 75,594

-

$ 75,594

31 to 90
Days
$ 2,649

-

$ 2,649

31 to 90
Days
$ 114,499

-

$ 114,499

31 to 90
Days
$ 4,020


-

$ 4,020
 91 to 180
Days
$ 19,577

-

$ 19,577

91 to 180
Days
$ 686

-

$ 686

91 to 180
Days
$ 7,881

-

$ 7,881

91 to 180
Days
$ 277


-

$ 277
 181 to 365
Days
$ 14,598

-

$ 14,598

181 to 365
Days
$ 512

-

$ 512

181 to 365
Days
$ 17,850

-

$ 17,850

181 to 365
Days
$ 627


-

$ 627
 Over 365
Days
$ 11,808

(500)

$ 11,308

Over 365
Days
$ 414

(18)

$ 396

Over 365
Days
$ 12,347

(561)

$ 11,786

Over 365
Days
$ 434


(20)

$ 414
 Total
$ 395,529

(500)
$ 395,029
Total
$ 13,657

(18)
$ 13,639
Total
$ 422,716

(561)
$ 422,155
Total
$ 14,843

(20)
$ 14,823
  • 21 -

March 31, 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
 0 to 30
Days
$ 221,075

-

$ 221,075

0 to 30
Days
$ 7,314

-

$ 7,314
 31 to 90
Days
$ 91,772

-

$ 91,772

31 to 90
Days
$ 3,036

-

$ 3,036
 91 to 180
Days
$ 55,413

-

$ 55,413

91 to 180
Days
$ 1,834

-

$ 1,834
 181 to 365
Days
$ 11,221

-

$ 11,221

181 to 365
Days
$ 371

-

$ 371
 Over 366
Days
$ 3,608

(595)

$ 3,013

Over 366
Days
$ 119

(19)

$ 100
 Total
$ 383,089

(595)
$ 382,494
Total
$ 12,674

(19)
$ 12,655

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

Balance at January 1

Foreign exchange gains and losses

Balance at March 31
 For the Three Months Ended
March 31, 2021
NT$
US$ (Note 6)
$ 561
$ 20


(61)

(2)

$ 500
$ 18
 For the Three Months Ended
March 31, 2020		 For the Three Months Ended
March 31, 2020





NT$
US$ (Note 6)
$ 590
$ 23

5

(4)
$ 595
$ 19

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
March 31,
2021
December 31,
2020
March 31,
2020
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

  • 22 -

  • 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		 March 31, 2021
NT$
US$ (Note 6)
$ 3,591,580
$ 125,866
 December 31, 2020
NT$
US$ (Note 6)
$ 3,547,354
$ 124,556
 March 31, 2020


NT$
US$ (Note 6)
$ 2,924,878
$ 96,770

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.

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, 2020

Additions
Reclassified from prepayment for equipment
Derecognition by replacement
Effect of foreign currency exchange differences

Balance at March 31, 2020

Accumulated depreciation and impairment
Balance at January 1, 2020

Depreciation
Derecognition by replacement
Effect of foreign currency exchange differences

Balance at March 31, 2020

Carrying amounts at March 31, 2020

 Land
Transportation
$ 1,092 $ 41,682,226
-
118,912
-
72,315
-
(177,751)

-

316,336

$ 1,092
$ 42,012,038

$ - $ 13,778,426
-
577,647
-
(177,751)

-

96,610

$ -
$ 14,274,932

$ 1,092
$ 27,737,106
 Miscellaneous
$ 86,550

251

52,450

-

49

$ 139,300

$ 58,193

3,772

-

75

$ 62,040

$ 77,260
 Total
$ 41,769,868

119,163

124,765

(177,751)

316,385
$ 42,152,430
$ 13,836,619

581,419

(177,751)

96,685
$ 14,336,972
$ 27,815,458
(Continued)
  • 23 -

Cost

Balance at January 1, 2021

Additions
Disposals
Effects of foreign currency exchange differences

Balance at March 31, 2021

Accumulated depreciation and impairment
Balance at January 1, 2021

Depreciation
Disposals
Effects of foreign currency exchange differences

Balance at March 31, 2021

Carrying amounts at December 31, 2020


Carrying amounts at March 31, 2021


U.S. dollars (Note 6)
Cost

Balance at January 1, 2020

Additions
Reclassified from prepayment for equipment
Derecognition by replacement
Effect of foreign currency exchange differences

Balance at March 31, 2020

Accumulated depreciation and impairment
Balance at January 1, 2020

Depreciation
Derecognition by replacement
Effect of foreign currency exchange differences

Balance at March 31, 2020

Carrying amounts at March 31, 2020



Cost

Balance at January 1, 2021

Additions
Disposals
Effects of foreign currency exchange differences

Balance at March 31, 2021
 Land
Transportation
$ 1,092 $ 44,074,249
-
306,380
-
(600,201)

-

76,181

$ 1,092
$ 43,856,609

$ - $ 15,035,194
-
576,801
-
(388,635)

-

25,718

$ -
$ 15,249,078

$ 1,092
$ 29,039,055

$ 1,092
$ 28,607,531

$ 36 $ 1,390,334
-
3,934
-
2,393
-
(5,881)

-

(804)

$ 36
$ 1,389,976

$ - $ 459,587
-
19,111
-
(5,881)

-

(528)

$ -
$ 472,289

$ 36
$ 917,687

$ 38 $ 1,547,551
-
10,737
-
(21,034)

-

(313)

$ 38
$ 1,536,941
 Miscellaneous
$ 143,722

576

-

(49)

$ 144,249

$ 69,524

6,688

-

(13)

$ 76,199

$ 74,198

$ 68,050

$ 2,887

8

1,735

-

(21)

$ 4,609

$ 1,941

125

-

(14)

$ 2,052

$ 2,557

$ 5,046

20

-

(11)

$ 5,055
 Total
$ 44,219,063

306,956

(600,201)

76,132
$ 44,001,950
$ 15,104,718

583,489

(388,635)

25,705
$ 15,325,277
$ 29,114,345
$ 28,676,673
$ 1,393,257

3,942

4,128

(5,881)

(825)
$ 1,394,621
$ 461,528

19,236

(5,881)

(542)
$ 474,341
$ 920,280
$ 1,552,635

10,757

(21,034)

(324)
$ 1,542,034
(Continued)
  • 24 -
Accumulated depreciation and impairment
Balance at January 1, 2021

Depreciation
Disposals
Effects of foreign currency exchange differences

Balance at March 31, 2021

Carrying amounts at December 31, 2020


Carrying amounts at March 31, 2021
 Land
Transportation
$ - $ 527,921
-
20,214
-
(13,620)

-

(116)

$ -
$ 534,399

$ 38
$ 1,019,630

$ 38
$ 1,002,542
 Miscellaneous
$ 2,441

234

-

(5)

$ 2,670

$ 2,605

$ 2,385
 Total
$ 530,362

20,448

(13,620)

(121)
$ 537,069
$ 1,022,273
$ 1,004,965
(Concluded)

No impairment assessment was performed in the three months ended March 31, 2021 and 2020 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 Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ -
$ -

-		 2020

NT$
US$ (Note 6)
$ 2,227
$ 74
2.88% - 2.91%

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.

Expenses relating to short-term leases
Expenses relating to low-value asset
leases

Total cash outflow for leases
 For the Three Months Ended
March 31, 2021
NT$
US$ (Note 6)
$ 8,167
$ 286

$ 22
$ 1

$ 8,189
$ 287
 For the Three Months Ended
March 31, 2020		 For the Three Months Ended
March 31, 2020





NT$
US$ (Note 6)
$ 8,321
$ 275
$ 55
$ 2
$ 8,376
$ 277
  • 25 -

15. BORROWINGS

a. Short-term loans

Secured
borrowings(Note 25)
Bank borrowings
Unsecured
borrowings
Credit borrowings

Interest rate		 March 31, 2021
NT$
US$ (Note 6)
$ 121,000
$ 4,240

5,900,000

206,764

$ 6,021,000
$ 211,004

0.80%-0.85%		 December 31, 2020
NT$
US$ (Note 6)
$ -
$ -

5,643,000

198,139

$ 5,643,000
$ 198,139

0.80%-1.12%		 March 31, 2020








NT$
US$ (Note 6)
$ -
$ -
7,045,000

233,085
$ 7,045,000
$ 233,085
0.65%-1.01%
  • b. Short-term bills payable (Note 25)
Commercial paper
Less:
Unamortized
discounts

 March 31, 2021
NT$
US$ (Note 6)
$ 8,117,000
$ 284,458


3,153

111

$ 8,113,847
$ 284,347
 December 31, 2020
NT$
US$ (Note 6)
$ 7,400,000
$ 259,832


3,353

118

$ 7,396,647
$ 259,714
 March 31, 2020








NT$
US$ (Note 6)
$ 3,965,000
$ 131,183

962

32
$ 3,964,038
$ 131,151
  • c. Long-term borrowings
Secured bank
loans (1)
(Note 25)

Unsecured bank
loans (2)


Less: Current
portion

Long-term
borrowings
 March 31, 2021
NT$
US$ (Note 6)
$ 8,900,586 $ 311,918
12,166,000

426,354

21,066,586
738,272

3,115,953

109,198

$ 17,950,633
$ 629,074
 December 31, 2020
NT$
US$ (Note 6)
$ 9,508,854 $ 333,879
12,960,683

455,080

22,469,537
788,959

3,820,780

134,157

$ 18,648,757
$ 654,802
 March 31, 2020














NT$
US$ (Note 6)
$ 9,157,390 $ 302,974
13,449,169

444,968
22,606,559
747,942

3,682,157

121,824
$ 18,924,402
$ 626,118

  • 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 September 2021 to December 2027 with floating interest rate ranges of 0.74-3.65%, 0.77%-3.65% and 1.68%-3.65% as of March 31, 2021, December 31, 2020 and March 31, 2020, 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 loans. (Refer to Note 8).

  • 2) Unsecured bank loans are for the purpose of general operations, with loan periods ranging from December 2021 to March 2026 with interest rate ranges of 0.63%-1.50%, 0.63%-1.50% and 0.83%-1.50% as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

  • 26 -

16. OTHER PAYABLES

Remuneration of
directors

Material consumption
and repairs
Salaries and bonuses
Fuel
Employees’
compensation
Port charges
Charter freight
Dock repairs
Interest
Others

 March 31, 2021
NT$
US$ (Note 6)
$ 135,620
$ 4,753

129,329
4,532
88,902
3,116
66,366
2,326
47,905
1,679
39,574
1,387
21,871
766
18,781
658
17,782
623

224,142

7,855

$ 790,272
$ 27,695
 December 31, 2020
NT$
US$ (Note 6)
$ 132,088
$ 4,638

107,790
3,785
73,948
2,596
56,228
1,975
49,474
1,737
41,653
1,463
35,277
1,239
52,432
1,841
18,845
662

243,836

8,560

$ 811,571
$ 28,496
 March 31, 2020








NT$
US$ (Note 6)
$ 141,172
$ 4,671
157,105
5,198
94,426
3,124
98,731
3,267
58,674
1,941
27,568
912
92,755
3,069
31,963
1,058
34,549
1,142

265,334

8,779
$ 1,002,277
$ 33,161

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, 2020 and 2019. The amount were NT$1,389 thousand (US$49 thousand) and NT$1,958 thousand (US$65 thousand) for the three months ended March 31, 2021 and 2020, respectively.

18. EQUITY

  • a. Common share capital
Number of shares authorized (in thousands)
Number of shares issued and fully paid (in
thousands)
March 31, 2021
NT$
US$ (Note 6)
Shares authorized$ 8,800,000
$ 308,393

Shares issued
$ 8,450,557
$ 296,147
 March 31,
2021
December 31,
2020
March 31,
2020
880,000
880,000
880,000
845,056
845,056
845,056
December 31, 2020
March 31, 2020
NT$
US$ (Note 6)
NT$
US$ (Note 6)
$ 8,800,000
$ 308,989
$ 8,800,000
$ 291,150
$ 8,450,557
$ 296,719
$ 8,450,557
$ 279,588		 March 31,
2021
December 31,
2020
March 31,
2020
880,000
880,000
880,000
845,056
845,056
845,056
December 31, 2020
March 31, 2020
NT$
US$ (Note 6)
NT$
US$ (Note 6)
$ 8,800,000
$ 308,989
$ 8,800,000
$ 291,150
$ 8,450,557
$ 296,719
$ 8,450,557
$ 279,588		 March 31,
2021
December 31,
2020
March 31,
2020
880,000
880,000
880,000
845,056
845,056
845,056
December 31, 2020
March 31, 2020
NT$
US$ (Note 6)
NT$
US$ (Note 6)
$ 8,800,000
$ 308,989
$ 8,800,000
$ 291,150
$ 8,450,557
$ 296,719
$ 8,450,557
$ 279,588




NT$
US$ (Note 6)
$ 8,800,000
$ 291,150
$ 8,450,557
$ 279,588
  • 27 -

b. 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

 March 31, 2021
NT$
US$
(Note 6)
$ 93,474
$ 3,276

5,428
190
16,197
568

65

2

$ 115,164
$ 4,036
 December 31, 2020
NT$
US$
(Note 6)
$ 93,474
$ 3,282

5,428
191
16,197
569

64

2

$ 115,163
$ 4,044
 March 31, 2020 March 31, 2020


NT$
$ 93,474

5,428
16,197

65

$ 115,164

NT$
$ 93,474

5,428
16,197

64

$ 115,163

NT$
$ 93,474

5,428
16,199

64

$ 115,165
 US$
(Note 6)
$ 3,093
179
536

2
$ 3,810

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.

  • 28 -

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 2020 and 2019 which have been approved in the board of directors and the shareholders’ meetings on March 9, 2021 and June 9, 2020, respectively, were as follows:

Legal reserve

Special reserve

Cash dividends

 Appropriation of Earnings
2020
2019
NT$
US$ (Note 6)
NT$
US$ (Note 6)
$ 87,477
$ 3,066
$ 183,083
$ 6,428
1,022,797
35,844
-
-
1,014,067

35,538
1,605,606

56,377

$ 2,124,341
$ 74,448
$ 1,788,689
$ 62,805		 Appropriation of Earnings
2020
2019
NT$
US$ (Note 6)
NT$
US$ (Note 6)
$ 87,477
$ 3,066
$ 183,083
$ 6,428
1,022,797
35,844
-
-
1,014,067

35,538
1,605,606

56,377

$ 2,124,341
$ 74,448
$ 1,788,689
$ 62,805		 Dividend Per Share Dividend Per Share
2020
NT$
US$ (Note 6)
$ 87,477
$ 3,066

1,022,797
35,844
1,014,067

35,538

$ 2,124,341
$ 74,448
 2020

NT$
$ 1.2
 2019






NT$
$ 1.9

The appropriations of earnings for 2020 are subject to the resolution of the shareholders’ meeting to be held on June 10, 2021.

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, 2021
$ (4,360,468 )
$ 3,337,525
$ 1

Exchange differences on translating the financial
statements of foreign operations
74,014
-
-
Unrealized valuation gain on financial assets at FVTOCI
-
77,429
-
Share of other comprehensive gain (loss) of associates
and joint ventures accounted for using the equity
method
(198 )
6,384
-
Disposal of investments in equity instruments designated
as at FVTOCI by associates

-

(686)

-

Balance at March 31, 2021
$ (4,286,652)
$ 3,420,652
$ 1

Balance at January 1, 2020
$ (2,330,970 )
$ 4,246,275
$ 2

Exchange differences on translating the financial
statements of foreign operations
313,416
-
-
Unrealized gain (loss) on financial assets at FVTOCI
-
(1,988,838)
-
Share of other comprehensive gain (loss) of associates
and joint ventures accounted for using the equity
method

14,550

(32,271)

(1)

Balance at March 31, 2020
$ (2,003,004)
$ 2,225,166
$ 1
 Gains on
Property
Revaluation
$ 145
-
-
2

-
$ 147
$ 133
-
-

12
$ 145
  • 29 -

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, 2021
$ (42,733)
$ 75,487
$ -

Exchange differences on translating the financial
statements of foreign operations
2,594
-
-
Unrealized valuation gain on financial assets at FVTOCI
-
2,713
-
Share of other comprehensive gain (loss) of associates
and joint ventures accounted for using the equity
method
(7 )
224
-
Disposal of investments in equity instruments designated
as at FVTOCI by associates
-
(24 )
-
Changes in translation adjustments

(110,078)

41,476

-

Balance at March 31, 2021
$ (150,224)
$ 119,876
$ -

Balance at January 1, 2020
$ (77,751 )
$ 141,637
$ -

Exchange differences on translating the financial
statements of foreign operations
10,369
-
-
Unrealized gain (loss) on financial assets at FVTOCI
-
(65,801)
-
Share of other comprehensive gain (loss) of associates
and joint ventures accounted for using the equity
method
481
(1,068)
-
Changes in translation adjustments

631

(1,148)

-

Balance at March 31, 2020
$ (66,270)
$ 73,620
$ -
 Gains on
Property
Revaluation
$ 4
-
-
-
-

1
$ 5
$ 4
-
-
-

1
$ 5

19. REVENUE

a. Disaggregation of revenue

Transportation

Vessel management
Others

 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 2,450,919 $ 85,892
2,265
79

8,643

303

$ 2,461,827
$ 86,274
 2020





NT$
US$ (Note 6)
$ 1,851,632 $ 61,262

38,088
1,260

12,753

422
$ 1,902,473
$ 62,944

b. Contract balances

Contract assets - transportation
services
 March 31, 2021
NT$
US$ (Note 6)
$ 275,269
$ 9,647
 December 31, 2020
NT$
US$ (Note 6)
$ 172,667
$ 6,063
 March 31, 2020

NT$
US$ (Note 6)
$ 112,381
$ 3,718

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 three months ended March 31, 2021 and 2020, no impairment losses were recognized.

  • 30 -

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 March 31, 2021, December 31, 2020 and March 31, 2020, the balance of contract liabilities were not material.

20. NET PROFIT (LOSS)

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:

Revenue from disposal of
investments

Less: Cost of disposal of
investments

Loss on disposal of investments
 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2021
NT$
US$ (Note 6)
$ 3,710
$ 130

(3,022)

(106)

$ 688
$ 24
 2020





NT$
US$ (Note 6)
$ -
$ -

-

-
$ -
$ -

b. Finance costs

Interest on bank loans/commercial
papers
 For the Three Months For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 88,824
$ 3,113
 2020

NT$
US$ (Note 6)
$ 125,334
$ 4,147

c. Depreciation and amortization

An analysis of depreciation by
function
Operating costs

Operating expenses


An analysis of amortization by
function
Operating expenses
 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 576,801 $ 20,214

6,688

234

$ 583,489
$ 20,448

$ 6,667
$ 234
 2020







NT$
US$ (Note 6)
$ 577,647 $ 19,111

3,772

125
$ 581,419
$ 19,236
$ 3,984
$ 132
  • 31 -

d. Employee benefits expense

Short-term benefits
Salary expenses

Insurance expenses


Post-employment benefits
Defined contribution plans
Defined benefit plans (Note 17)

Other employee benefits

Total employee benefits expense
An analysis by function
Operating costs

Operating expenses

 For the Three Months For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 302,811
$ 10,612


6,527

229


309,338

10,841

5,044
177

1,389

48


6,433

225


24,792

869

$ 340,563
$ 11,935

$ 275,094
$ 9,641


65,469

2,294

$ 340,563
$ 11,935
 2020



















NT$
US$ (Note 6)
$ 284,492
$ 9,412

6,027

199

290,519

9,611
5,655
187

1,958

65

7,613

252

22,464

744
$ 320,596
$ 10,607
$ 269,097
$ 8,903

51,499

1,704
$ 320,596
$ 10,607

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 ended March 31, 2021 and 2020, 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:

Employees’ compensation

Remuneration of directors
 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 3,532
$ 124

$ 3,532
$ 124
 2020



NT$
US$ (Note 6)
$ -
$ -
$ -
$ -

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 2020 and 2019, which were resolved by the board of directors on March 9, 2021 and March 10, 2020, respectively, were as follows:

Employees’ compensation

Remuneration of directors
 Cash Amount for the Year Cash Amount for the Year Ended December 31
2020
NT$
US$ (Note 6)
$ 8,390
$ 294

$ 8,390
$ 294
 2019



NT$
US$ (Note 6)
$ 17,590
$ 587
$ 17,590
$ 587
  • 32 -

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, 2020 and 2019.

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 expense recognized in profit or loss
Current tax
In respect of the current year

Deferred tax
In respect of the current year

Income tax expense recognized in
profit or loss
 For the Three Months For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 262
$ 9


3,201

112

$ 3,463
$ 121
 2020





NT$
US$ (Note 6)
$ -
$ -

2,552

84
$ 2,552
$ 84
  • b. Income tax assessments

The income tax returns through 2018 of the Company has been assessed by the tax authorities. The income tax returns through 2019 of its subsidiaries have been assessed by the tax authorities.

22. EARNINGS (LOSSES) PER SHARE

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

  • a. Net profit (loss) for the year
Earnings (losses) used in the
computation of basic/diluted
EPS
 For the Three Months For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 342,355
$ 11,998
 2020

NT$
US$ (Note 6)
$ (387,145)
$ (12,808)

  • 33 -

  • 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 (losses) per share

Effect of potentially dilutive ordinary shares:
Employees’ compensation

Weighted-average number of ordinary shares used in the
computation of diluted earnings (losses) per share
 For the Three Months Ended
March 31
2021
2020
845,056 845,056

261

-
845,317
845,056		 For the Three Months Ended
March 31
2021
2020
845,056 845,056

261

-
845,317
845,056


2021
845,056

261

845,317

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

March 31, 2021

New Taiwan dollars
Financial assets at FVTPL
Mutual funds

Domestic listed shares
Derivative instruments

 Level 1
$ 51,684

52,096

-

$ 103,780
 Level 2
$ 1,519,243

-

30,953

$ 1,550,196
 Level 3
$ -

-

-

$ -
 Total
$ 1,570,927
52,096

30,953
$ 1,653,976
(Continued)
  • 34 -
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

Domestic listed shares
Derivative instruments


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, 2020
New Taiwan dollars
Financial assets at FVTPL
Mutual funds

Domestic listed shares
Derivative instruments


Financial assets at FVTOCI
Equity investments
Domestic listed shares

Domestic unlisted shares
Foreign listed shares


Financial liabilities at FVTPL
Derivative instruments
 Level 1
$ 6,527,666


-

501,211

$ 7,028,877

$ -

$ 1,811

1,826

-

$ 3,637

$ 228,760


-

17,565

$ 246,325

$ -

Level 1
$ 45,394

31,318

-

$ 76,712

$ 6,404,490


-

445,135

$ 6,849,625

$ -
 Level 2
$ -

-

-

$ -

$ 243,043

$ 53,241

-

1,085

$ 54,326

$ -

-

-

$ -

$ 8,517

Level 2
$ 1,511,959

-

41,921

$ 1,553,880

$ -

-

-

$ -

$ 307,897
 Level 3
$ -

2,217,881

-

$ 2,217,881

$ -

$ -

-

-

$ -

$ -

77,725

-

$ 77,725

$ -

Level 3
$ -

-

-

$ -

$ -

2,283,860

-

$ 2,283,860

$ -
 Total
$ 6,527,666
2,217,881

501,211
$ 9,246,758
$ 243,043
$ 55,052
1,826

1,085
$ 57,963
$ 228,760
77,725

17,565
$ 324,050
$ 8,517
(Concluded)
Total
$ 1,557,353
31,318

41,921
$ 1,630,592
$ 6,404,490
2,283,860

445,135
$ 9,133,485
$ 307,897
(Continued)
  • 35 -
U.S. dollars (Note 6)
Financial assets at FVTPL
Mutual funds

Domestic listed shares
Derivative instruments


Financial assets at FVTOCI
Equity investments
Domestic listed shares

Domestic unlisted shares
Foreign listed shares


Financial liabilities at FVTPL
Derivative instruments

March 31, 2020
New Taiwan dollars
Financial assets at FVTPL
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
 Level 1
$ 1,594

1,100

-

$ 2,694

$ 224,877


-

15,630

$ 240,507

$ -

Level 1
$ 24,331

$ 5,604,681


-

527,986

$ 6,132,667

$ -
 Level 2
$ 53,088

-

1,472

$ 54,560

$ -

-

-

$ -

$ 10,811

Level 2
$ 1,207,856

$ -

-

-

$ -

$ 434,202
 Level 3
$ -

-

-

$ -

$ -

80,192

-

$ 80,192

$ -

Level 3
$ -

$ -

1,963,435

-

$ 1,963,435

$ -
 Total
$ 54,682
1,100

1,472
$ 57,254
$ 224,877
80,192

15,630
$ 320,699
$ 10,811
(Concluded)
Total
$ 1,232,187
$ 5,604,681
1,963,435

527,986
$ 8,096,102
$ 434,202
(Continued)
  • 36 -
U.S. dollars (Note 6)
Financial assets at FVTPL
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
 Level 1
$ 805

$ 185,432


-

17,468

$ 202,900

$ -
 Level 2
$ 39,962

$ -

-

-

$ -

$ 14,366
 Level 3
$ -

$ -

64,961

-

$ 64,961

$ -
 Total
$ 40,767
$ 185,432
64,961

17,468
$ 267,861
$ 14,366
(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)		 March 31, 2021
NT$
US$ (Note 6)
$ 1,653,976 $ 57,963
15,475,827 542,345
9,246,758 324,050
243,043
8,517
36,244,449 1,270,175		 December 31, 2020
NT$
US$ (Note 6)
$ 1,630,592 $ 57,254

15,442,346
542,217

9,133,485
320,699

307,897
10,811

36,469,968 1,280,548		 March 31, 2020

NT$
US$ (Note 6)
$ 1,232,187 $ 40,767

18,051,389
597,234

8,096,102
267,861

434,202
14,366

34,824,265 1,152,168

  • 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.

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

  • 38 -

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 Three Months Ended March 31
2021
2020
NT$
US$ (Note 6)
NT$
US$ (Note 6)
$ (3,178)
$ (111)
$ 3,124
$ 103
AUD (ii)		 2020
For the Three Months Ended March 31
2021
2020
NT$
US$ (Note 6)
NT$
US$ (Note 6)
$ 43,981
$ 1,541
$ 59,422
$ 1,966
HKD (iii)		 2020
For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ (990) $ (35)
 2020

NT$
US$ (Note 6)
$ (5,468) $ (181)

i. This was mainly attributable to the USD accounts receivables held by the Group.

  • ii. This was mainly attributable to the USD trade payables held by the Group.

iii. This was mainly attributable to the exposure to the Group’s AUD denominated bank loans.

  • iv. 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		 March 31, 2021
NT$
US$ (Note 6)
$ 13,200,799 $ 462,618
17,975,106 629,932
1,012,618 35,487
17,226,327 603,691		 December 31, 2020
NT$
US$ (Note 6)
$ 13,567,232 $ 476,377

17,720,782
622,218

568,602
19,965

17,788,402
624,593		 March 31, 2020

NT$
US$ (Note 6)
$ 16,309,348 $ 539,598

15,970,200
528,377

370,015
12,242

17,645,397
583,801

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 three months ended March 31, 2021 and 2020 would increase/decrease by NT$20,267 thousand (US$710 thousand) and NT$21,594 thousand (US$714 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 three months ended March 31, 2021 and 2020 would have increased/decreased by NT$162,302 thousand (US$5,688 thousand) and NT$123,219 thousand (US$4,077 thousand), as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the three months ended March 31, 2021 and 2020 would increase/decrease by NT$924,676 thousand (US$32,405 thousand) and NT$809,610 thousand (US$26,786 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 three months ended March 31, 2021 and 2020, 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 March 31, 2021, December 31, 2020, and March 31, 2020, the Group had available unutilized short-term bank loan facilities of NT$9,044,202 thousand (US$316,951 thousand), NT$9,737,200 thousand (US$341,896 thousand) and NT$11,968,870 thousand (US$395,992 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.

March 31, 2021

Non-interest
bearing

Floating
interest rate
Fixed interest
rate

 On Demand or Within 1 Year
NT$
US$ (Note 6)

$ 1,043,016 $ 36,552


3,069,270
107,562

14,228,690

498,640

$ 18,340,976
$ 642,754
 1-5 Years
NT$
US$ (Note 6)
$ - $ -

13,379,471
468,879

4,351,142

152,484

$ 17,730,613
$ 621,363
 More Than 5 Years More Than 5 Years



NT$

$ 1,043,016

3,069,270

14,228,690

$ 18,340,976

NT$
$ -
13,379,471

4,351,142

$ 17,730,613

NT$
$ -
801,342

-

$ 801,342
 US$ (Note 6)
$ -

28,083

-
$ 28,083

December 31, 2020

Non-interest
bearing

Floating
interest rate
Fixed interest
rate

 On Demand or Within 1 Year
NT$
US$ (Note 6)

$ 960,784 $ 33,736


3,450,503
121,155

13,551,906

475,839

$ 17,963,193
$ 630,730
 1-5 Years
NT$
US$ (Note 6)
$ - $ -

13,860,373
486,670

4,414,357

154,998

$ 18,274,730
$ 641,668
 More Than 5 Years More Than 5 Years



NT$

$ 960,784

3,450,503

13,551,906

$ 17,963,193

NT$
$ -
13,860,373

4,414,357

$ 18,274,730

NT$
$ -
905,132

-

$ 905,132
 US$ (Note 6)
$ -

31,781

-
$ 31,781

March 31, 2020

Non-interest
bearing

Floating
interest rate
Fixed interest
rate

 On Demand or Within 1 Year
NT$
US$ (Note 6)

$ 1,208,668 $ 39,989


3,447,666
114,067

11,511,705

380,867

$ 16,168,039
$ 534,923
 1-5 Years
NT$
US$ (Note 6)
$ - $ -

14,193,970
469,610

4,776,581

158,034

$ 18,970,551
$ 627,644
 More Than 5 Years More Than 5 Years



NT$

$ 1,208,668

3,447,666

11,511,705

$ 16,168,039

NT$
$ -
14,193,970

4,776,581

$ 18,970,551

NT$
$ -
724,765

-

$ 724,765
 US$ (Note 6)
$ -

23,979

-
$ 23,979

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.

March 31, 2021

Net settled
Interest rate
swaps

Gross settled
Cross-currency
swaps
Inflows

Outflows

 On Demand or Within 1 Year
NT$
US$ (Note 6)
$ (7,903)
$ (277)

$ 241,922 $ 8,478


(243,874)

(8,546)

$ (1,952)
$ ( 68)
 1-5 Years
NT$
US$ (Note 6)
$ (71,333)
$ (2,500)

$ 217,735 $ 7,630


(197,128)

(6,908)

$ 20,607
$ 722
 More Than 5 Years



NT$
$ (7,903)

$ 241,922

(243,874)

$ (1,952)


NT$
$ (71,333)

$ 217,735

(197,128)

$ 20,607


NT$
$ (31,968)

$ -

-

$ -
 US$ (Note 6)
$ (1,120)

$ -

-
$ -
December 31, 2020 2020
On Demand or Within 1 Year 1-5 Years More Than 5 Years
NT$ US$ (Note 6) NT$ US$ (Note 6) NT$ US$ (Note 6)
Net settled
Interest rate
swaps
 $ (6,963)
 $ (244)
 $ (71,714)
$		 (2,518)
 $ (41,376)
 $ (1,453)
Gross settled
Cross-currency
swaps
Inflows
 $ 255,260 $ 8,963 $ 350,034 $ 12,291 $ - $ -
Outflows
 (256,981)
 (9,023)
 (329,316)
(11,563)
 -
 -
$ (1,721)
 $ (60)
 $ 20,718 $ 728
 $ -
 $ -
March 31, 2020
On Demand or Within 1 Year 1-5 Years More Than 5 Years
NT$ US$ (Note 6) NT$ US$ (Note 6) NT$ US$ (Note 6)
Net settled
Interest rate
swaps
 $ 487
 $ 16
 $ 4,022 $ 133
 $ -
 $ -
Gross settled
Cross-currency
swaps
Inflows
 $ 213,650 $ 7,069
 $ 399,029 $ 13,202
 $ - $ -
Outflows
 (270,009)
 (8,933)
 (476,775)
(15,774)
 -
 -
$ (56,359)
 $ (1,864 )
 $ (77,746)
$		 (2,572)
 $ -
 $ -
  • 43 -

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)

New Cape Asia Ltd.（New Cape Asia）

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
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 For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 208,578
$ 7,310

29,728
1,042

30,762

1,078

$ 269,068
$ 9,430
 2020





NT$
US$ (Note 6)
$ 214,630
$ 7,101
24,289
804

-

-
$ 238,919
$ 7,905

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.

  • 44 -

c. Purchases

Account Items
Freight costs
 Related Party Category
Related party in substance
 **For the Three Months ** **For the Three Months ** **Ended March 31 **
2021
NT$
US$ (Note 6)
$ 105
$ 4
 2020

NT$
US$ (Note 6)
$ 2,090
$ 69

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. Contract assets
Account Item
Contract assets

 Related Party
Category/Name
Related party in substance
Jiangxi Yadong
 March 31, 2021
NT$
US$ (Note 6)
$ -
$ -
 December 31, 2020 March 31, 2020

NT$
US$ (Note 6)
$ -
$ -
NT$
US$ (Note 6)
$ 10,181
$ 337

For the three months ended March 31, 2020, no impairment loss was recognized for contract assets from related parties.

  • e. 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

Associates
Related parties in substance
FENC
Jiangxi Yadong


Associates
ITG-Uming Shipping
 March 31, 2021
NT$
US$ (Note 6)
$ 84,058
$ 2,946

-
-
1,308
46
-

-

$ 85,366
$ 2,992

$ 27,394
$ 960
 December 31, 2020 March 31, 2020







NT$
US$ (Note 6)
$ 71,353
$ 2,505

21,895
769
-
-
-

-

$ 93,248
$ 3,274

$ 27,341
$ 960



NT$
US$ (Note 6)
$ 55,109
$ 1,823
-
-
-
-
40,141

1,328
$ 95,250
$ 3,151
$ 29,016
$ 960

The outstanding trade receivables from related parties are unsecured. No impairment loss was recognized for trade receivables from related parties for the three months ended March 31, 2021 and 2020.

  • f. Payables to related parties (excluding loans from related parties)
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
 March 31, 2021
NT$
US$ (Note 6)
$ 842
$ 30

March 31, 2021
NT$
US$ (Note 6)
$ -
$ -
 December 31, 2020 March 31, 2020

NT$
US$ (Note 6)
$ 391
$ 14

December 31, 2020
NT$
US$ (Note 6)
$ -
$ -
March 31, 2020

NT$
US$ (Note 6)
$ -
$ -
NT$
US$ (Note 6)
$ 5,585
$ 185

g. Prepayments

  • 45 -

h. Disposal of financial assets

For the three months ended March 31, 2021: None.

For the three months ended March 31, 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)
$ 541,908 $ 17,929
 **Gain(Loss) on Disposal **

NT$
US$ (Note 6)
$ 9,849 $ 326

i. Loans to related parties

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

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
 March 31, 2021
NT$
US$ (Note 6)
$ 66,166
$ 2,319

$ 66,166
$ 2,319

$ -
$ -

$ 116,280
$ 4,075

$ 23,256
$ 815

$ -
$ -
 December 31, 2020
NT$
US$ (Note 6)
$ 69,776
$ 2,450

$ 69,776
$ 2,450

$ -
$ -

$ 116,280
$ 4,083

$ -
$ -

$ -
$ -
 March 31, 2020

















NT$
US$ (Note 6)
$ 85,952
$ 2,844
$ 85,952
$ 2,844
$ -
$ -
$ 116,280
$ 3,847
$ 24,806
$ 821
$ -
$ -

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

k. Others

Account Item
Temporary receipts
(classified as
other current
liabilities)
 Related Party Category March 31, 2021
NT$
US$ (Note 6)
$ 15,000
$ 526
 December 31, 2020
NT$
US$ (Note 6)
$ 15,000
$ 527
 March 31, 2020
Investors that have significant
influence over the Group
Asia Cement (Note 1)

NT$
US$ (Note 6)
$ 15,000
$ 496
  • 46 -
Account Item
Rent expense


Other revenue
 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)
 **For the Three Months ** **For the Three Months ** **Ended March 31 **
2021
NT$
US$ (Note 6)
$ -
$ -


5,011

176

$ 5,011
$ 176

$ 6,150
$ 216
 2020







NT$
US$ (Note 6)
$ 77
$ 3

5,013

166
$ 5,090
$ 169
$ 6,970
$ 231

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

Note 2: Refundable deposits for the lease were NT$4,573 thousand (US$ 160 thousand) as of March 31, 2021, December 31, 2020 and March 31, 2020.

Note 3: Remuneration of directors.

  • i. Compensation of key management personnel
Short-term employee benefits

Post-employment benefits

 For the Three Months Ended March 31 For the Three Months Ended March 31 For the Three Months Ended March 31
2021
NT$
US$ (Note 6)
$ 11,792
$ 413


642

22

$ 12,434
$ 435
 2020





NT$
US$ (Note 6)
$ 7,017
$ 232

714

24
$ 7,731
$ 256

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)
 March 31, 2021
NT$
US$ (Note 6)
$ 27,166,527 $ 952,042

2,683,789
94,053
142,675
5,000

46,476

1,629

$ 30,039,467
$ 1,052,724
 December 31, 2020
NT$
US$ (Note 6)
$ 27,050,057 $ 949,791

2,586,806
90,829

142,400
5,000

46,485

1,632

$ 29,825,748
$ 1,047,252
 March 31, 2020 March 31, 2020



NT$

$ 27,166,527

2,683,789
142,675

46,476

$ 30,039,467




NT$

$ 27,050,057

2,586,806

142,400

46,485

$ 29,825,748




NT$

$ 25,651,674

2,253,984

93,698

55,322

$ 28,054,678
 US$ (Note 6)
$ 848,691

74,573

3,100

1,830
$ 928,194
  • 47 -

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 Group entered into a long-term agreement with Taiwan Power Company (TPC) to provide voyage charter services of Panamax vessel on the pacific route through April 2024.

  • 2) In November 2020, U-Ming Singapore entered into a 10-year Time Charter with Anglo American Shipping Pte. Ltd., and entered into a shipbuilding contract with Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS) to construct 4 Liquefied Natural Gas (LNG) dual-fuel powered bulk carriers for US$230,163 thousand. As of March 31, 2021, U-Ming Singapore had paid US$25,574 thousand, and the contract obligations will begin to be fulfilled after the completion of shipbuilding.

  • 3) U-Ming Singapore entered into shipbuilding contract with Qingdao Beihai Shipbuilding Heavy Industry to construct 2 bulks carries. The total contract amount was US$100,400 thousand. As of March 31, 2021, U-Ming Singapore has paid US$10,040 thousand, and the contract obligations would begin to be fulfilled after the completion of shipbuilding.

  • 4) 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 March 31, 2021, U-Ming Hong Kong has paid US$14,480 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, the delayed transport demand resulted from the pandemic is expected to slow because of the market freight rise, and the group expects that operations will gradually return to normal. The Group assesses that there are no doubts about continued operations, asset impairment, and financing risks at this stage.

  • 48 -

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:

March 31, 2021

Carrying Carrying
Foreign Amount
Currency (In Thousands
(In Thousands)
Exchange Rate		 of NTD)
Financial assets
Monetary items
USD $ 1,717 28.535 (USD:NTD) $ 48,982
USD 292 6.5713 (USD:RMB) 8,319
AUD 685 0.7608 (AUD:USD) 14,877
HKD 2,698 0.1286 (HKD:USD) 9,902
$ 82,080
Non-monetary items
Financial assets at FVTOCI
HKD 136,570 0.1286 (HKD:USD) $ 501,210
Financial liabilities
Monetary items
USD $ 894 28.535 (USD:NTD) $ 25,521
AUD 20,944 0.7608 (AUD:USD) 454,691
$ 480,212
Non-monetary items
Derivative instruments
AUD 6,004 0.7608 (AUD:USD) $ 12,153
December 31, 2020
Carrying
Foreign Amount
Currency (In Thousands
(In Thousands)
Exchange Rate		 of NTD)
Financial assets
Monetary items
USD $
2,074
 28.480 (USD:NTD) $
59,062
USD 316 6.5249 (USD:RMB) 9,011
HKD 2,699 0.1290 (HKD:USD) 9,913
$
77,986
(Continued)
  • 49 -
Carrying Carrying
Foreign Amount
Currency (In Thousands
(In Thousands)
Exchange Rate		 of NTD)
Non-monetary items
Financial assets at FVTOCI
HKD 121,191
 0.1290 (HKD:USD) $ 445,135
Derivative financial assets
AUD 17,322
 0.7707 (AUD:USD) 41,921
$ 487,056
Financial liabilities
Monetary items
USD 1,330
 28.480 (USD:NTD) $
37,871
AUD 25,975
 0.7707 (AUD:USD) 570,150
$ 608,021
Non-monetary items
Derivative financial liabilities
AUD 9,005
 0.7707 (AUD:USD) $
15,336
(Concluded)
March 31, 2020
Carrying
Foreign Amount
Currency (In Thousands
(In Thousands)
Exchange Rate		 of NTD)
Financial assets
Monetary items
USD $
803		 30.225 (USD:NTD) $ 24,277
USD 442 7.0851 (USD:RMB) 13,354
HKD 14,028 0.1290 (HKD:USD) 54,680
$ 92,311
Non-monetary items
Financial assets at FVTOCI
HKD 135,451 0.129 (HKD:USD) $ 527,987
Financial liabilities
Monetary items
USD 2,279 30.225 (USD:NTD) $ 68,875
AUD 31,887 0.6165 (AUD:USD) 594,217
$ 663,092
Non-monetary items
Derivative instruments
AUD 31,803 0.6165 (AUD:USD) $ 123,756
  • 50 -

For the three months ended March 31, 2021 and 2020 realized and unrealized foreign exchange gains (losses) were NT$(4,322) thousand (US$151 thousand) and NT$74,924 thousand (US$2,479 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)

  • 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

  • 51 -

  • 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.

Marine transportation

Investment


Non-operating income and
expenses
Profit (Loss) before income
tax		 **Segment ** Re venues
Ended March 31
2020
NT$
US$ (Note 6)
$ 1,902,473
$ 62,944


-

-

$ 1,902,473
$ 62,944

 Segment Pr Segment Pr ofits
**For ** the Three Mont **hs ** For the Three Mont **hs ** **Ended March 31 **
2021
US$ (Note 6)
$ 86,274


24

$ 86,298
 2021
NT$
US$ (Note 6)
$ 232,589
$ 8,151

(202)

(7)

232,387
8,144
113,431

3,975

$ 345,818
$ 12,119
 2020


NT$
$ 2,461,827


688

$ 2,462,515







NT$
US$ (Note 6)
$ (63,842 )
$ (2,112)

(55)

(2)
(63,897 )
(2,114)
(320,696 )
(10,610)
$ (384,593)
$ (12,724)

Reporting income is generated from transactions with external parties. There are no inter-segment transactions for the three months ended March 31, 2021 and 2020, 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
 March 31, 2021
NT$
US$ (Note 6)
$ 50,653,479 $ 1,775,135
6,920,913
242,541

3,591,580

125,866

$ 61,165,972
$ 2,143,542

$ 37,201,208 $ 1,303,705

289,325

10,139

$ 37,490,533
$ 1,313,844
 December 31, 2020
NT$
US$ (Note 6)
$ 50,208,797 $ 1,762,949

6,886,336
241,796

3,547,354

124,556

$ 60,642,487
$ 2,129,301

$ 37,207,343 $ 1,306,438

259,650

9,117

$ 37,466,993
$ 1,315,555
 March 31, 2020




















NT$
US$ (Note 6)
$ 51,618,105 $ 1,707,795

6,240,272
206,461

2,924,878

96,770
$ 60,783,255
$ 2,011,026
$ 35,680,251 $ 1,180,488

340,649

11,271
$ 36,020,900
$ 1,191,759
  • 53 -

TABLE 1

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (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
New Cape Asia
Shipping Ltd.
Eagle
Cape Asia (III)
Cape Asia		 Long-term receivables
- related parties
Long-term receivables
- related parties
Other receivable -
related parties
Long-term receivables
- related parties
Long-term receivables
- related parties		 Y
Y
Y
Y
Y		 $ 727,198
(US$ 25,484)
85,605
(US$ 3,000)
28,535
(US$ 1,000)
85,605
(US$ 3,000)
2,854
(US$ 100)		 $ 727,198
(US$ 25,484)
85,605
(US$ 3,000)
28,535
(US$ 1,000)
85,605
(US$ 3,000)
2,854
(US$ 100)		 $ 684,396
(US$ 23,984)
(Note c)
75,296
(US$ 2,639)
-
(US$ -)
68,197
(US$ 2,390)
2,854
(US$ 100)		 -
-
-
-
-		 Short-term
financing
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
Purchasing equipment of
transportation and
operational revolving
fund
Operational revolving
fund
$ -

-

-

-
-		 -
-
-
-
-		 $ -
-
-
-
-		 30% of net worth of
subsidiary
$9,463,786
(US$331,655)
30% of net worth of
subsidiary
$9,463,786
(US$331,655)
30% of net worth of
subsidiary
$9,463,786
(US$331,655)
30% of net worth of
subsidiary
$9,463,786
(US$331,655)
30% of net worth of
subsidiary
$9,463,786
(US$331,655)		 40% of net worth of
subsidiary
$12,618,381
(US$442,207)
40% of net worth of
subsidiary
$12,618,381
(US$442,207)
40% of net worth of
subsidiary
$12,618,381
(US$442,207)
40% of net worth of
subsidiary
$12,618,381
(US$442,207)
40% of net worth of
subsidiary
$12,618,381
(US$442,207)
2 U-Ming Hong Kong ITG-U-Ming Shipping Other receivables -
related parties		 Y 41,946
(US$ 1,470)		 41,946
(US$ 1,470)		 27,394
(US$ 960)		 - Short-term
financing		 - Short-term financing - - - 30% of net worth of
subsidiary
$2,451,839
(US$85,924)		 40% of net worth of
subsidiary
$3,269,118
(US$114,565)

Note a: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$28.535 as of March 31, 2021.

  • 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$88,567 thousand (US$3,104 thousand) offset against long-term receivables - related parties.

  • 54 -

TABLE 2

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2021 (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
$11,837,720
(US$414,849)
50% of net worth of
the Company
$11,837,720
(US$414,849)		 $ 5,941,157
(US$ 208,206)
619,780
(US$ 21,720)		 $ 5,884,188
(US$ 206,209)
413,187
(US$ 14,480)		 $ 5,884,188
(US$ 206,209)
413,187
(US$ 14,480)		 $ -
-		 24.85%
1.75%		 100% of net worth of
the Company
$23,675,439
(US$829,698)
Net worth of the
Company
$23,675,439
(US$829,698)		 Y
Y		 -
-		 -
-
1 U-Ming Singapore Winyield An investee accounted for
using the equity method
by subsidiary		 50% of net worth of
the subsidiary
$15,772,977
(US$552,759)		 69,911
(US$ 2,450)		 66,166
(US$ 2,319)		 66,166
(US$ 2,319)		 - 0.21% 100% of net worth of
the subsidiary
$31,545,953
(US$1,105,518)		 - - -
2 Yue-Li Da Ju Fiber The subsidiary is its
supervisor		 50% of net worth of
the subsidiary
$1,637,437
(US$57,383)		 116,280
(US$ 4,075)		 116,280
(US$ 4,075)		 23,256
(US$ 815)		 - 3.55% 100% of net worth of
the subsidiary
$3,274,874
(US$114,767)		 - - -

Note a: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$28.535 as of March 31, 2021.

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 MARCH 31, 2021

(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 March March 31, 2021 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 New Century Corporation
Far Eastern International Bank
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
CSBC Corporation, Taiwan
Oriental Union Chemical Corp.
Far Eastern New Century Corporation
Far Eastern Department Stores Ltd.
Far EasTone Telecommunications Co.,
Ltd.
Everest Textile Co., Ltd.
Da Ju Fiber Co., Ltd.
Phison Electronics Corp.
GIGA-BYTE TECHNOLOGY CO.,
LTD.		 The chairman is the same
The chairman of the Company is its
vice-chairman
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 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
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		 31,180
80,989
1,793
331
99
4
91,487
151,236
13,240
4,671
4,862
1,516
1,769
2
5
29,937
76
150		 $ 941,650

866,587

85,705

21,217

1,923

105

980,211
1,618,227

632,876

100,191

94,562

45,777

42,456

118

44

827,858

37,126

14,970		 $ 33,000

30,369

3,004

744

67

4

34,351

56,710

22,179

3,511

3,314

1,604

1,488

4

2

29,012

1,301

525		 1
2
-
-
-
-
18
4
-
1
1
-
-
-
-
19
-
-		 $ 941,650
866,587
85,705
21,217
1,923
105
980,211
1,618,227
632,876
100,191
94,562
45,777
42,456
118
44
827,858
37,126
14,970		 $ 33,000

30,369

3,004

744

67

4

34,351

56,710

22,179

3,511

3,314

1,604

1,488

4

2

29,012

1,301

525
10,000

-

1,500

-

-

-

-

94,166

10,600

-

2,000

-

-

-

-

-

-

-		 $ 302,000

-

71,700

-

-

-

-
1,007,575

506,680

-

38,900

-

-

-

-

-

-

-		 $ 10,583

-

2,513

-

-

-

-

35,310

17,756

-

1,363

-

-

-

-

-

-

-		 (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 March March 31, 2021 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
Asia Cement Corporation
Far Eastern New Century 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
Bonds
Standard Chartered Bond
Standard Chartered Bond
Beneficiary certificates
Opas Fund Segregated Portfolio Tranche
C
Opas Fund Segregated Portfolio Tranche
A
Bonds
Societe Generale Bond
Societe Generale Bond
Common stocks
Asia Cement (China) Holdings
Corporation
China Sanshui Cement Group Ltd.
Bonds
Lloyds Bank Plc Bond
Societe Generale Bond
BNP Paribas Bond
Standard Chartered Bond
Standard Chartered Bond
Lloyds Bank Plc Bond
BNP Paribas Bond
Societe Generale Bond		 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 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
None
None
Related party in substance
Related party in substance
None
None
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 amortized
cost - current
Financial assets at amortized
cost - non-current
Financial assets at fair value
through profit or loss - current
Same as above
Financial assets at amortized
cost - current
Financial assets at amortized
cost - non-current
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
7,628
8,057
510
40,329
9,537
27
8,050
-
-
8
1
-
-
16,701
1,691
-
-
-
-
-
-
-
-		 $ 1,435,570

364,641

243,326

32,691

307,631

102,181

989,509

51,684

4,351

136,576

502,285

27,449

1,560

60,291

488,489

12,722

1,011

571

562

6,176

192,944

89,638

59,585

58,922		 $ 50,309

12,779

8,527

1,146

10,781

3,581

34,677

1,811

152

4,786

17,602

962

55

2,113

17,119

446

35

20

20

216

6,762

3,141

2,088

2,065		 4
-
-
-
18
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 1,435,570
364,641
243,326
32,691
307,631
102,181
989,509
51,684
4,351
136,576
502,285
27,449
1,560
60,291
488,489
12,722
1,011
571
562
6,176
192,944
89,638
59,585
58,922		 $ 50,309

12,779

8,527

1,146

10,781

3,581

34,677

1,811

152

4,786

17,602

962

55

2,113

17,119

446

35

20

20

216

6,762

3,141

2,088

2,065
11,282

7,585

8,000

500

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 $ 120,722

362,563

241,600

32,050

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 $ 4,231

12,706

8,467

1,123

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 (Note a)
(Note a)
(Note a)
(Note a)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
  • 57 -

(Concluded)

Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the Holding
Company		 Financial Statement Account June 30, 2020 June 30, 2020 June 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)
Overseas Shipping
Pte. Ltd.		 Bonds
Standard Chartered Bond
Standard Chartered Bond		 None
None		 Financial assets at amortized
cost - current
Financial assets at amortized
cost - non-current		 -
-
4,723

168,470
166

5,904		 -
-		 4,723
168,470
166

5,904
-

-
-

-
-

-		 -
-

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 March 31, 2021; (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$28.535 as of March 31, 2021.

  • 58 -

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 THREE MONTHS ENDED MARCH 31, 2021

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

Company Name Related Party Relationship Transaction 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
U-Ming Hong Kong		 Asia Cement
U-Ming Hong Kong
U-Ming Singapore		 The major shareholder
The major shareholder of
the parent company
The major shareholder of
the parent company		 Sales
Sales
Purchase		 $ (144,115)
(117,025)
117,025		 $ (5,050)

(4,101)

4,101		 (39)
(6)
98		 Upon completion of
loading, within a
month
-
-		 ad hoc basis
-
-		 ad hoc basis
-
-		 $ 48,445
102
(
102)		 $ 1,698

4
(
4)		 64
-
-		 -
-
-

Note: The foreign-currency amounts of payables and receivables were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$28.535 as of March 31, 2021; the foreign-currency amount of profit and loss items were translated into New Taiwan dollars at the average exchange rate of US$1=NT$28.366 for the three months ended March 31, 2021.

  • 59 -

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 MARCH 31, 2021

(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 $595,829 (US$20,881)		 - $ - - $ - $ -

Note: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$28.535 as of March 31, 2021.

  • 60 -

TABLE 6

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (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 Freight revenue $ 24,945 $ 874 - 1
1 U-Ming Singapore U-Ming Marine Transport Corporation
U-Ming Hong Kong		 2
3		 Accounts receivables
Freight revenue		 14,160
117,025		 496
4,101		 -
-		 -
5
2 U-Ming Hong Kong U-Ming Singapore 3
3		 Freight revenue
Accounts receivables		 26,496
45,065		 929
1,579		 -
-		 1
-
3 U-Ming Xiamen U-Ming Singapore 3 Freight revenue 15,699 550 - 1

  • Note: 1. Parent to subsidiary.

  • Subsidiary to parent.

  • Between subsidiaries.

  • 61 -

TABLE 7

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE THREE MONTHS ENDED MARCH 31, 2021

(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 As of March 31, 2021 As of March 31, 2021 As of March 31, 2021 Net Income (Loss) of the
Investee		 Net Income (Loss) of the
Investee		 Share of Profits (Loss) Share of Profits (Loss) Note
March 31, 2021 December 31, 2020 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
New Cape Asia
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
Marshall Islands
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
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
578,113
122,860
119,920
1,624
491		 $ 92,847
4,273
52,567
47,675
70,230
6,521
1,752
-
-
-
-
-
23,167
24,531
17,158
16,635
20,260
4,306
4,203
57
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
578,113
122,860
119,920
1,624
491		 $ 92,847
4,273
52,567
47,675
70,230
6,521
1,752
-
-
-
-
-
23,167
24,531
17,158
16,635
20,260
4,306
4,203
57
17		 150,146
27,000
150,000
136,040
205,410
30,245
3,340
-
-
-
-
-
-
70,000
48,960
-
41,435
4
4
-
-		 100
100
68
74
40
25
40
17
17
50
25
100
100
32
26
100
49
25
25
33
33		 $ 31,545,953
8,172,796
2,232,823
2,128,871
2,042,132
469,417
86,229
80,161
101
-
932
88,207
1,016,994
1,042,051
766,169
1,424,897
636,098
106,586
127,874
1,412
471		 $ 1,105,518
286,413
78,249
74,606
71,566
16,451
3,022
2,809
4
-
33
3,091
35,640
36,518
26,850
49,935
22,292
3,735
4,481
49
17		 $ 403,750
(704)
18,007
656
48,531
15,741
7,806
16,278
(5)
(12,478)
3,702
806
285
18,007
656
(53,730)
28,194
90
49
1
-		 $ 14,149

(25)
631
23
1,701
552
274
570

-

(437)
130
28
10
631
23

(1,883)
988
3
2
-
-		 $ 403,750
(704)
12,277
483
19,427
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
Not applicable		 $ 14,149

(25)
430
17
681
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
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 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$28.535 as of March 31, 2021; the foreign currency amount of profit and loss items were translated into New Taiwan dollars at an average exchange rate of US$1=NT$28.366 for the three months ended March 31, 2021.

  • 62 -

TABLE 8

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2021 (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 March 31,
2021
Net Income
(Loss) of the
Investee		 % Ownership
of Direct or
Indirect
Investment		 Investment
Gain (Loss)
(Note b)		 Carrying
Amount as of
March 31, 2021		 Accumulated
Repatriation of
Investment
Income as of
March 31, 2021

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)		 ($ 4,855)
(US$ (170))
(
3,716)
(US$ (130))		 100
49		 ($ 4,855)
(US$ (170))
(
1,821)
(US$ (64))		 $ 33,408
(US$ 1,171)
40,167
(US$ 1,408)		 $ -
-
Accumulated Outward
 Investment Amounts Upper Limit on the Amount of
Remittance for Investments in
Mainland China as of
March 31, 2021		 Authorized by the Investment
Commission, MOEA		 Investments Stipulated by the
Investment Commission, MOEA
$75,263 (US$2,568) $75,263 (US$2,568) $14,205,264 (US$497,819)

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.

  • 63 -

TABLE 9

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES INFORMATION OF MAJOR SHAREHOLDERS FOR THE THREE MONTHS ENDED MARCH 31, 2021

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.

  • 64 -

More from U-MING

Notice of Dividend Amount 2026
May 21
Notice of Dividend Amount 2026
May 21
Declaration of Voting Results & Voting Rights Announcements 2026
May 21
Investor Presentation 2026
May 21
Investor Presentation 2026
May 21
Investor Presentation 2026
May 21
Regulatory Filings 2026
May 21
Proxy Solicitation & Information Statement 2026
May 18
Regulatory Filings 2026
May 8
Regulatory Filings 2026
May 8
View all filings →