U-Ming Marine Transport Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2021 and 2020

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

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 September 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020, and for the nine months ended September 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine 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 September 30, 2021 and 2020, the unreviewed assets amounted to NT$10,319,541 thousand (US$370,540 thousand) and NT$8,733,447 thousand (US$300,118 thousand), respectively, (16.87% and 14.55% of the consolidated assets, respectively), and the unreviewed liabilities amounted to NT$213,958 thousand (US$7,683 thousand) and NT$446,826 thousand (US$15,355 thousand), respectively, 0.58% and 1.20% of the consolidated liabilities, respectively). The unreviewed comprehensive income (loss) for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020 were NT$332,261 thousand (US$11,930 thousand), NT$142,256 thousand (US$4,889 thousand), NT$104,499 thousand (US$3,752 thousand) and NT$(115,045) thousand (US$(3,953) thousand), respectively, representing 21.57%, (35.77)%, 4.72% and 4.87% of the consolidated comprehensive income, respectively.

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 September 30, 2021 and 2020 were NT$3,705,687 thousand (US$133,059 thousand) and NT$2,855,592 thousand (US$98,130 thousand), respectively, and the related investment income (loss) for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020 were NT$84,614 thousand (US$3,038 thousand), NT$(3,270) thousand (US$(112) thousand), NT$135,538 thousand (US$4,867 thousand) and NT$62,199 thousand (US$2,137 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 September 30, 2021 and 2020, its consolidated financial performance for the three and nine months ended September 30, 2021 and 2020, and its consolidated cash flows for the nine months ended September 30, 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-Ching Lin and Yi-Wen Wang.

Deloitte & Touche Taipei, Taiwan Republic of China

November 11, 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.

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 (Notes 8 and 24) Financial assets at fair value through other comprehensive income (Notes 9 and 25) Financial assets at amortized cost (Note 25) Contract assets (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 (Note 9) Financial assets at amortized cost 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 and 26) Refundable deposits (Notes 24 and 25) Long-term receivables from related parties (Note 24) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 15 and 25) Short-term bills payable (Notes 15 and 25) Financial liabilities at fair value through profit or loss (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 Net defined benefit liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 18) Common share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		September 30, 2021 Amount % $ 13,135,312 22 1,660,445 3 6,843,862 11 175,262 - 326,281 1 564,463 1 35,842 - 203,964 - 592,073 1 184,541 - 23,722,045 39 2,257,898 4 720,354 1 3,781,037 6 27,776,059 46 76,621 - 6,142 - 2,076,350 3 58,465 - 686,712 1 37,439,638 61 $ 61,161,683 100 $ 4,716,000 8 7,550,881 12 199,920 - 150,399 - 945,738 2 - - 6,155,837 10 126,910 - 19,845,685 32 16,633,597 27 181,382 1 - - 127,828 - 16,942,807 28 36,788,492 60 8,450,557 14 115,162 - 6,964,052 11 1,022,797 2 9,787,907 16 17,774,756 29 (1,967,284) (3) 24,373,191 40 $ 61,161,683 100		December 31, 2020 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		September 30, 2020
						Amount % $ 15,380,334 26 1,502,149 2 6,406,072 11 150,798 - 176,602 - 371,508 1 56,704 - 109,235 - 428,053 1 276,768 - 24,858,223 41 2,042,106 3 298,833 1 2,942,645 5 28,135,027 47 47,042 - 9,124 - 904,439 2 94,822 - 700,812 1 35,174,850 59 $ 60,033,073 100 $ 5,533,000 9 7,215,805 12 353,980 1 207,082 - 935,252 2 47,142 - 3,078,647 5 216,308 - 17,587,216 29 19,127,732 32 174,407 1 120,537 - 146,662 - 19,569,338 33 37,156,554 62 8,450,557 14 115,163 - 6,876,575 11 - - 8,339,437 14 15,216,012 25 (905,213) (1) 22,876,519 38 $ 60,033,073 100

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

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 7) Financial assets at fair value through profit or loss (Notes 8 and 24) Financial assets at fair value through other comprehensive income (Notes 9 and 25) Financial assets at amortized cost (Note 25) Contract assets (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 (Note 9) Financial assets at amortized cost 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 and 26) Refundable deposits (Notes 24 and 25) Long-term receivables from related parties (Note 24) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 15 and 25) Short-term bills payable (Notes 15 and 25) Financial liabilities at fair value through profit or loss (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 Net defined benefit liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 18) Common share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		September 30, 2021 Amount % $ 471,645 22 59,621 3 245,740 11 6,293 - 11,716 1 20,268 1 1,287 - 7,324 - 21,259 1 6,626 - 851,779 39 81,074 4 25,865 1 135,764 6 997,345 46 2,751 - 221 - 74,555 3 2,099 - 24,658 1 1,344,332 61 $ 2,196,111 100 $ 169,336 8 271,127 12 7,178 - 5,400 - 33,958 2 - - 221,035 10 4,557 - 712,591 32 597,257 27 6,513 1 - - 4,590 - 608,360 28 1,320,951 60 303,431 14 4,135 - 250,056 11 36,725 2 351,451 16 638,232 29 (70,638) (3) 875,160 40 $ 2,196,111 100		December 31, 2020 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		September 30, 2020
						Amount % $ 528,534 26 51,620 2 220,140 11 5,182 - 6,069 - 12,766 1 1,948 - 3,754 - 14,710 1 9,511 - 854,234 41 70,175 3 10,269 1 101,122 5 966,839 47 1,617 - 314 - 31,080 2 3,259 - 24,083 1 1,208,758 59 $ 2,062,992 100 $ 190,138 9 247,966 12 12,164 1 7,116 - 32,139 2 1,620 - 105,796 5 7,433 - 604,372 29 657,310 32 5,994 1 4,142 - 5,040 - 672,486 33 1,276,858 62 290,397 14 3,957 - 236,308 11 - - 286,579 14 522,887 25 (31,107) (1) 786,134 38 $ 2,062,992 100

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

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

OPERATING REVENUE Freight revenue (Notes 19 and 24) Other operating revenue (Note 20) Total operating revenue OPERATING COSTS Freight cost (Notes 20 and 24) GROSS PROFIT OPERATING EXPENSES (Notes 20 and 24) PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Note 24) Finance costs (Note 20) Share of the profit or loss of associates and joint ventures (Note 12) Interest income Dividend income Gain on disposal of property, plant and equipment Net gain on sale of investments Net loss on foreign currency exchange (Note 28) Net gain (loss) on financial assets and liabilities at fair value through profit or loss Other losses Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX (BENEFIT) EXPENSE (Note 21) NET PROFIT FOR THE PERIOD		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2021		2020		2021		2020
		Amount % $ 3,909,782 95 198,895 5 4,108,677 100 2,789,504 68 1,319,173 32 147,122 4 1,172,051 28 765 - (85,282 ) (2 ) 75,504 2 17,613 - 190,136 5 352,814 9 99,225 2 (14,021 ) - (17,767 ) (1) (202) - 618,785 15 1,790,836 43 9,890 - 1,780,946 43		Amount % $ 2,349,949 90 247,382 10 2,597,331 100 2,079,600 80 517,731 20 117,116 4 400,615 16 5,547 - (88,088 ) (3 ) 34,679 1 49,641 2 214,983 8 - - 6,009 - (34,484) (1) 153,070 6 (1,347) - 340,010 13 740,625 29 (2,421) - 743,046 29		Amount % $ 9,700,230 98 242,496 2 9,942,726 100 7,271,955 73 2,670,771 27 403,291 4 2,267,480 23 11,140 - (260,527) (3 ) 171,582 2 67,035 1 192,383 2 498,682 5 110,532 1 (34,166 ) - 144,897 1 (3,643) - 897,915 9 3,165,395 32 9,793 - 3,155,602 32		Amount % $ 5,833,710 95 282,642 5 6,116,352 100 5,570,550 91 545,802 9 323,326 5 222,476 4 18,777 - (322,216 ) (5) 123,040 2 234,092 4 216,538 4 - - 18,050 - (34,476) (1) (56,344 ) (1) (5,905) - 191,556 3 414,032 7 (45,304) - 459,336 7 (Continued)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Nine Months	Ended September 30
2021	2020	2021	2020
Amount % $ (229,410 ) (6 ) (12,675 ) - (20,264 ) (1 ) 21,785 1 (240,564) (6) $ 1,540,382 37 $ 2.10 $ 2.10	Amount % $ (415,904 ) (16 ) (3,425 ) - (686,887 ) (27 ) (34,524) (1) (1,140,740) (44) $ (397,694) (15) $ 0.88 $ 0.88	Amount % $ (61,118 ) (1 ) 12,956 - (846,340 ) (9 ) (49,000) - (943,502) (10) $ 2,212,100 22 $ 3.73 $ 3.73	Amount % $ (1,625,453 ) (27 ) (965 ) - (1,135,305 ) (18 ) (59,876) (1) (2,821,599) (46) $ (2,362,263) (39) $ 0.54 $ 0.54

$	$	$

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

(Concluded)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

OPERATING REVENUE Freight revenue (Notes 19 and 24) Other operating revenue (Note 20) Total operating revenue OPERATING COSTS Freight cost (Notes 20 and 24) GROSS PROFIT OPERATING EXPENSES (Notes 20 and 24) PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Note 24) Finance costs (Note 20) Share of the profit or loss of associates and joint ventures (Note 12) Interest income Dividend income Gain on disposal of property, plant and equipment Net gain on sale of investments Net loss on foreign currency exchange (Note 28) Net gain (loss) on financial assets and liabilities at fair value through profit or loss Other losses Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX (BENEFIT) EXPENSE (Note 21) NET PROFIT FOR THE PERIOD		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2021		2020		2021		2020
		Amount % $ 140,387 95 7,142 5 147,529 100 100,162 68 47,367 32 5,283 4 42,084 28 27 - (3,062 ) (2 ) 2,711 2 632 - 6,827 5 12,668 9 3,563 2 (503 ) - (638) (1) (7) - 22,218 15 64,302 43 355 - 63,947 43		Amount % $ 80,754 90 8,501 10 89,255 100 71,464 80 17,791 20 4,024 4 13,767 16 191 - (3,027 ) (3 ) 1,191 1 1,706 2 7,388 8 - - 206 - (1,185) (1) 5,260 6 (46) - 11,684 13 25,451 29 (83) - 25,534 29		Amount % $ 348,302 98 8,707 2 357,009 100 261,111 73 95,898 27 14,481 4 81,417 23 399 - (9,355) (3 ) 6,161 2 2,407 1 6,908 2 17,906 5 3,969 1 (1,227 ) - 5,203 1 (131) - 32,240 9 113,657 32 352 - 113,305 32		Amount % $ 200,471 95 9,713 5 210,184 100 191,428 91 18,756 9 11,111 5 7,645 4 645 - (11,072) (5) 4,228 2 8,044 4 7,441 4 - - 620 - (1,184) (1) (1,936) (1) (203) - 6,583 3 14,228 7 (1,557) - 15,785 7

(Continued)

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)

	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
	2021		2020		2021		2020
$	Amount % (8,237 ) (6 ) (455 ) - (728 ) (1 ) 782 1 (8,638) (6) 55,309 37 $ 0.075 $ 0.075	$	Amount % (14,292 ) (16 ) (118 ) - (23,604 ) (27 ) (1,186) (1) (39,200) (44) (13,666) (15) $ 0.030 $ 0.030	$	Amount % (2,195 ) (1 ) 466 - (30,389 ) (9 ) (1,759) - (33,877) (10) 79,428 22 $ 0.134 $ 0.134	$	Amount % (55,857) (27 ) (33) - (39,014) (18 ) (2,058 ) (1) (96,962 ) (46) (81,177 ) (39) $ 0.019 $ 0.019

$		$		$		$

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

(Concluded)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Common Share Capital Capital Surplus BALANCE AT JANUARY 1, 2020 $ 8,450,557 $ 115,152 Appropriation of 2019 earnings Legal reserve - - Cash dividends distributed by the Company - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - 14 Net profit for the nine months ended September 30, 2020 - - Other comprehensive income for the nine months ended September 30, 2020, net of income tax - - Total comprehensive income for the nine months ended September 30, 2020 - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Cash dividends claimed after over prescription by shareholders - (3 ) Changes from investments in associates and joint ventures accounted for using the equity method - - BALANCE AT SEPTEMBER 30, 2020 $ 8,450,557 $ 115,163 BALANCE AT JANUARY 1, 2021 $ 8,450,557 $ 115,163 Appropriation of 2020 earnings Legal reserve - - Special reserve - - Cash dividends distributed by the Company - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - 1 Net profit for the nine months ended September 30, 2021 - - Other comprehensive income (loss) for the nine months ended September 30, 2021, net of income tax - - Total comprehensive income (loss) for the nine months ended September 30, 2021 - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Cash dividends claimed after over prescription by shareholders - (2 ) Changes from investments in associates and joint ventures accounted for using the equity method - - BALANCE AT SEPTEMBER 30, 2021 $ 8,450,557 $ 115,162		Retained Earnings Legal Reserve Special Reserve Unappropriated Earnings $ 6,693,492 $ - $ 9,669,918 183,083 - (183,083 ) - - (1,605,606 ) - - - - - 459,336 - - (1,056) - - 458,280 - - 110 - - - - - (182) $ 6,876,575 $ - $ 8,339,437 $ 6,876,575 $ - $ 8,755,996 87,477 - (87,477 ) - 1,022,797 (1,022,797 ) - - (1,014,067 ) - - - - - 3,155,602 - - 293 - - 3,155,895 - - 692 - - - - - (335) $ 6,964,052 $ 1,022,797 $ 9,787,907	Other Equity	Total $ 1,915,440 - - - - (2,820,543) (2,820,543) (110 ) - - $ (905,213) $ (1,022,797 ) - - - - - (943,795) (943,795) (692 ) - - $ (1,967,284)	Total Equity $ 26,844,559 - (1,605,606 ) 14 459,336 (2,821,599) (2,362,263) - (3 ) (182) $ 22,876,519 $ 23,175,494 - - (1,014,067 ) 1 3,155,602 (943,502) 2,212,100 - (2 ) (335) $ 24,373,191
			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 - - - - - - - - - - - - - - - - (1,195,180) (1,625,374) (1) 12 (1,195,180) (1,625,374) (1) 12 - (110 ) - - - - - - - - - - $ (3,526,150) $ 2,620,791 $ 1 $ 145 $ (4,360,468 ) $ 3,337,525 $ 1 $ 145 - - - - - - - - - - - - - - - - - - - - (895,340) (48,457) - 2 (895,340) (48,457) - 2 - (692 ) - - - - - - - - - - $ (5,255,808) $ 3,288,376 $ 1 $ 147

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

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

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

Common Share Capital Capital Surplus BALANCE AT JANUARY 1, 2020 $ 281,873 $ 3,841 Appropriation of 2019 earnings Legal reserve - - Cash dividends distributed by the Company - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - - Net profit for the nine months ended September 30, 2020 - - Other comprehensive income for the nine months ended September 30, 2020, net of income tax - - Total comprehensive income for the nine months ended September 30, 2020 - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Cash dividends claimed after over prescription by shareholders - - Changes from investments in associates and joint ventures accounted for using the equity method - - Changes in translation adjustments 8,524 116 BALANCE AT SEPTEMBER 30, 2020 $ 290,397 $ 3,957 BALANCE AT JANUARY 1, 2021 $ 296,719 $ 4,044 Appropriation of 2020 earnings Legal reserve - - Special reserve - - Cash dividends distributed by the Company - - Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - - Net profit for the nine months ended September 30, 2021 - - Other comprehensive income (loss) for the nine months ended September 30, 2021, net of income tax - - Total comprehensive income (loss) for the nine months ended September 30, 2021 - - Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates - - Cash dividends claimed after over prescription by shareholders - - Changes from investments in associates and joint ventures accounted for using the equity method - - Changes in translation adjustments 6,712 91 BALANCE AT SEPTEMBER 30, 2021 $ 303,431 $ 4,135		Retained Earnings Legal Reserve Special Reserve Unappropriated Earnings $ 223,265 $ - $ 322,546 6,292 - (6,292 ) - - (55,175 ) - - - - - 15,785 - - (36) - - 15,749 - - 4 - - - - - (6) 6,751 - 9,753 $ 236,308 $ - $ 286,579 $ 241,453 $ - $ 307,444 3,141 - (3,141 ) - 36,725 (36,725 ) - - (36,412 ) - - - - - 113,305 - - 11 - - 113,316 - - 25 - - - - - (12) 5,462 - 6,956 $ 250,056 $ 36,725 $ 351,451	Other Equity	Total $ 63,890 - - - - (96,926) (96,926) (4 ) - - 1,933 $ (31,107) $ (35,914 ) - - - - - (33,888) (33,888) (25 ) - - (811) $ (70,638)	Total Equity $ 895,415 - (55,175 ) - 15,785 (96,962) (81,177) - - (6) 27,077 $ 786,134 $ 813,746 - - (36,412 ) - 113,305 (33,877) 79,428 - - (12) 18,410 $ 875,160
			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 - - - - - - - - - - - - - - - - (41,071) (55,855 ) - - (41,071) (55,855) - - - (4 ) - - - - - - - - - - (2,352 ) 4,284 - 1 $ (121,174) $ 90,062 $ - $ 5 $ (153,106 ) $ 117,187 $ - $ 5 - - - - - - - - - - - - - - - - - - - - (32,148) (1,740) - - (32,148) (1,740) - - - (25 ) - - - - - - - - - - (3,464) 2,653 - - $ (188,718) $ 118,075 $ - $ 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)

CASH FLOWS FROM OPERATING ACTIVITIES Income 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 on foreign currency exchange Others 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 Acquisition of associates accounted for using the equity method Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 3,165,395 1,693,974 20,196 (61) (150,884) 260,527 (67,035) (428,892) (171,582) (498,682) 35,079 (110,532) (80,462) (153,614) (178,059) (29,555) (193,829) (23,179) (25,708) 137,469 (94,104) (15,815) 3,090,647 93,871 335,851 (264,345) (46,218) 3,209,806 (35,349) (162,526) (225,376) (2,248,770) 1,807,940	2020 $ 414,032 1,761,216 11,964 - 56,371 322,216 (234,092) (499,207) (123,040) - 15,083 (18,050) 479,234 48,134 (125,081) 5,286 133,478 (58,750) 18,521 (48,805) 15,787 (21,860) 2,152,437 356,378 499,207 (341,831) (10,623) 2,655,568 (413,616) (269,573) - (1,844,647) - (Continued)

11 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

Increase in refundable deposits Decrease in financing provided - related parties Payments for intangible assets Increase in prepayments for equipment Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayments of 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 IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 6,575 43,505 (7,951) (1,158,778) 98,901 (1,881,829) (1,924,000) 155,065 4,292,471 (2,755,596) (1,014,069) (1,246,129) (299,224) (217,376) 13,352,688 $ 13,135,312	2020 $ 30,261 - - (605,023) 24,748 (3,077,850) (967,000) 4,013,990 3,387,267 (4,450,914) (1,605,609) 377,734 (454,360) (498,908) 15,879,242 $ 15,380,334

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)

CASH FLOWS FROM OPERATING ACTIVITIES Income 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 on foreign currency exchange Others 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 Acquisition of associates accounted for using the equity method Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 113,657 60,825 725 (2) (5,418) 9,355 (2,407) (15,400) (6,160) (17,906) 1,260 (3,968) (2,889) (5,516) (6,394) (1,061) (6,960) (832) (923) 4,936 (3,379) (568) 110,975 3,371 12,059 (9,492) (1,660) 115,253 (1,269) (5,836) (8,092) (80,746) 64,917	2020 $ 14,228 60,523 411 - 1,937 11,073 (8,044) (17,155) (4,228) - 518 (620) 16,468 1,654 (4,298) 182 4,587 (2,019) 636 (1,677) 542 (751) 73,967 12,247 17,155 (11,747) (365) 91,257 (14,214) (9,264) - (63,390) - (Continued)

13 -

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

Increase in refundable deposits Decrease in financing provided - related parties Payments for intangible assets Increase in prepayments for equipment Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayments of 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 IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 236 1,562 (285) (41,608) 3,551 (67,570) (69,084) 5,568 154,128 (98,944) (36,412) (44,744) (138) 2,801 468,844 $ 471,645	2020 $ 1,040 - - (20,791) 851 (105,768) (33,230) 137,937 116,401 (152,952) (55,175) 12,981 403 (1,127) 529,661 $ 528,534

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 NINE MONTHS ENDED SEPTEMBER 30, 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 November 4, 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. The IFRSs endorsed by the FSC for application starting from 2022

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts-Cost of Fulfilling a Contract”	Effective Date Announced by IASB
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1: The amendments to IFRS 9 will be 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” will be 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” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
15 -
Note 3: 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 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.
b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs 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 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

New IFRSs
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 12 “Deferred Tax related to Assets and
Liabilities arising from a Single Transaction”

Effective Date
Announced by IASB (Note 1)

To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

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 will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: 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 4: Except that deferred taxes will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after 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, Table 7 and Table 8 for the detailed information of subsidiaries (including the percentage of ownership and main business).

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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.

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 recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates in cash flow projections, growth rate, discount rate, profitability, etc. 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$27.85 to US$1.00, NT$28.48 to US$1.00 and NT$29.1 to US$1.00 published by the Bank of Taiwan as of September 30, 2021, December 31, 2020 and September 30, 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		September 30, 2021 NT$ US$ (Note 6) $ 489 $ 18 1,472,383 52,868 11,662,440 418,759 $ 13,135,312 $ 471,645		December 31, 2020 NT$ US$ (Note 6) $ 473 $ 17 582,427 20,450 12,769,788 448,377 $ 13,352,688 $ 468,844		September 30, 2020
						NT$ US$ (Note 6) $ 426 $ 15 1,832,518 62,973 13,547,390 465,546 $ 15,380,334 $ 528,534

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8. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Cross-currency swap contracts (a) Non-derivative financial assets Beneficiary certificates - open-end funds Domestic listed shares Financial liabilities held for trading Derivative financial liabilities (not under hedge accounting) Cross-currency swap contracts (a) Interest rate swap contracts (b) Financial liabilities at FVTPL - current		September 30, 2021 NT$ US$ (Note 6) $ 11,463 $ 412 1,598,060 57,381 50,922 1,828 $ 1,660,445 $ 59,621 $ 9,225 $ 331 190,695 6,847 $ 199,920 $ 7,178		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		September 30, 2020
						NT$ US$ (Note 6) $ 11,537 $ 396 1,467,110 50,416 23,502 808 $ 1,502,149 $ 51,620 $ 31,740 $ 1,090 322,240 11,074 $ 353,980 $ 12,164

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

Contract Amount Range of Interest Range of Interest (In Thousands) Maturity Date Rates Paid Rates Received September 30, 2021 USD2,492/AUD3,002 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%:1.13% plus 1%:1.02% USD8,500/AUD12,373 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%:1.18% plus 1.05%:1.07% 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% September 30, 2020 USD7,475/AUD9,005 2022.03.21 3-month LIBOR plus 3-month AUD BBR-BBSW 1%:1.23% plus 1%:1.09% USD11,900/AUD17,322 2024.01.22 3-month LIBOR plus 3-month AUD BBR-BBSW 1.05%:1.32% plus 1.05%:1.15%

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

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

Contract Amount		Range of Interest	Range of Interest Rates
(In Thousands)	Maturity Date	Rates Paid	Received
September 30, 2021
USD1,890	2022.07.20	1.36%	3-month LIBOR: 0.1343%
USD1,820	2022.09.20	1.43%	3-month LIBOR: 0.1254%
USD4,856	2022.10.25	1.18%	3-month LIBOR: 0.1253%
USD6,615	2023.04.22	1.27%	3-month LIBOR: 0.1383%
USD3,780	2023.06.05	1.90%	3-month LIBOR: 0.1189%
USD3,780	2023.08.30	1.85%	3-month LIBOR: 0.1208%
USD9,625	2023.10.30	1.89%	3-month LIBOR: 0.1285%
USD10,413	2024.01.16	1.68%	3-month LIBOR: 0.1286%
USD43,110	2027.08.25	2.865%	3-month LIBOR: 0.1293%
USD46,703	2028.01.10	2.875%	3-month LIBOR: 0.1349%
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%
September 30, 2020
USD3,780	2022.07.20	1.36%	3-month LIBOR: 0.2718%
USD3,640	2022.09.20	1.43%	3-month LIBOR: 0.2274%
USD8,094	2022.10.25	1.18%	3-month LIBOR: 0.2445%
USD9,923	2023.04.22	1.27%	3-month LIBOR: 0.2578%
USD5,670	2023.06.05	1.90%	3-month LIBOR: 0.2511%
USD5,670	2023.08.30	1.85%	3-month LIBOR: 0.2460%
USD13,475	2023.10.30	1.89%	3-month LIBOR: 0.2683%
USD14,578	2024.01.16	1.68%	3-month LIBOR: 0.2663%
USD50,295	2027.08.25	2.865%	3-month LIBOR: 0.2500%
USD50,295	2028.01.10	2.875%	3-month LIBOR: Not effective yet
USD1,291	2021.03.19	1.115%	3-month LIBOR: 0.2274%

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

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9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Equity Instruments Current Domestic listed shares Foreign listed shares Non-current Domestic unlisted shares		September 30, 2021 NT$ US$ (Note 6) $ 6,462,982 $ 232,064 380,880 13,676 $ 6,843,862 $ 245,740 $ 2,257,898 $ 81,074		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		September 30, 2020	September 30, 2020
						NT$ U $ 5,965,795 440,277 $ 6,406,072 $ 2,042,106	S$ (Note 6) $ 205,010 15,130 $ 220,140 $ 70,175

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 parties Less: Allowance for impairment loss Related parties		September 30, 2021 NT$ US$ (Note 6) $ 564,953 $ 20,286 (490) (18) $ 564,463 $ 20,268 $ 35,842 $ 1,287		December 31, 2020 NT$ US$ (Note 6) $ 329,468 $ 11,569 (561) (20) $ 328,907 $ 11,549 $ 93,248 $ 3,274		September 30, 2020
						NT$ US$ (Note 6) $ 372,081 $ 12,786 (573) (20) $ 371,508 $ 12,766 $ 56,704 $ 1,948

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 customer upon completion of each voyage period. The outstanding period of demurrage depends on progress of settlement, normally longer than the outstanding period of freight charge.

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

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

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

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

September 30, 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 $ 387,363 - $ 387,363 0 to 30 Days $ 13,909 - $ 13,909 0 to 30 Days $ 270,139 - $ 270,139 0 to 30 Days $ 9,485 - $ 9,485	31 to 90 Days $ 148,879 - $ 148,879 31 to 90 Days $ 5,346 - $ 5,346 31 to 90 Days $ 114,499 - $ 114,499 31 to 90 Days $ 4,020 - $ 4,020	91 to 180 Days $ 45,776 - $ 45,776 91 to 180 Days $ 1,644 - $ 1,644 91 to 180 Days $ 7,881 - $ 7,881 91 to 180 Days $ 277 - $ 277	181 to 365 Days $ 5,706 - $ 5,706 181 to 365 Days $ 205 - $ 205 181 to 365 Days $ 17,850 - $ 17,850 181 to 365 Days $ 627 - $ 627	Over 365 Days $ 13,071 (490) $ 12,581 Over 365 Days $ 469 (18) $ 451 Over 365 Days $ 12,347 (561) $ 11,786 Over 365 Days $ 434 (20) $ 414	Total $ 600,795 (490) $ 600,305 Total $ 21,573 (18) $ 21,555 Total $ 422,716 (561) $ 422,155 Total $ 14,843 (20) $ 14,823

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September 30, 2020

New Taiwan dollars

Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost U.S. dollars (Note 6) Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	0 to 30 Days $ 262,494 - $ 262,494 0 to 30 Days $ 9,020 - $ 9,020	31 to 90 Days $ 97,373 - $ 97,373 31 to 90 Days $ 3,346 - $ 3,346	91 to 180 Days $ 52,557 - $ 52,557 91 to 180 Days $ 1,806 - $ 1,806	181 to 365 Days $ 2,786 - $ 2,786 181 to 365 Days $ 96 - $ 96	Over 365 Days $ 13,575 (573) $ 13,002 Over 365 Days $ 466 (20) $ 446	Total $ 428,785 (573) $ 428,212 Total $ 14,734 (20) $ 14,714

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

Balance at January 1 Less: Impairment losses reversed Foreign exchange losses Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 NT$ US$ (Note 6) $ 561 $ 20 (61) (2) (10) - $ 490 $ 18		2020
				NT$ US$ (Note 6) $ 590 $ 23 - - (17) (3) $ 573 $ 20

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

% of Ownership
September
30,
2021
December 31,
2020
September
30,
2020
Remark
100
100
100
-
100
100
100
Note 2
68
68
68
Note 1
74
74
74
Note 1
100
-
-
Notes 1
and 3
100
100
100
Note 1
100
100
100
Note 1
32
32
32
Note 1
26
26
26
Note 1
100
100
100
Note 1
100
100
100
Note 1

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Note 1: Those companies were immaterial subsidiaries, their financial statements have not been reviewed.
Note 2: U-Ming Hong Kong’s financial statements have been reviewed though U-Ming Hong Kong have been recognized as an immaterial subsidiary.
Note 3: The Company established a 100%-owned subsidiary, U-Ming Marine Offshore Company Limited, with NT$50,000 thousand (US$1,795 thousand) in June 2021. The Company increased investment of NT$20,000 thousand (US$718 thousand) in August 2021 but the process of capital increase is not completed and it classified as repayments of long-term investment.
b. Subsidiaries excluded from the consolidated financial statements: None.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Associates that are not individually material		September 30, 2021 NT$ US$ (Note 6) $ 3,781,037 $ 135,764		December 31, 2020 NT$ US$ (Note 6) $ 3,547,354 $ 124,556		September 30, 2020
						NT$ US$ (Note 6) $ 2,942,645 $ 101,122

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

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

The Group and other companies jointly invested in and established Drive Catalyst SPC SP Tranche Two and increased the capital of Drive Catalyst SPC SP Tranche Three in cash in accordance with the original shareholding ratio in 2021. Refer to Note 24 (k).

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 Effects of foreign currency exchange differences Balance at September 30, 2020	Land Transportation $ 1,092 $ 41,682,226 - 1,844,039 - 873,311 - (321,428) - (1,194,157) $ 1,092 $ 42,883,991	Miscellaneous $ 86,550 608 63,771 - (715) $ 150,214	Total $ 41,769,868 1,844,647 937,082 (321,428) (1,194,872) $ 43,035,297 (Continued)

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Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation Derecognition by replacement Effects of foreign currency exchange differences Balance at September 30, 2020 Carrying amounts at September 30, 2020 Cost Balance at January 1, 2021 Additions Disposals Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation Disposals Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2021 Carrying amounts at December 31, 2020 Carrying amounts at September 30, 2021 U.S. dollars (Note 6) Cost Balance at January 1, 2020 Additions Reclassified from prepayment for equipment Derecognition by replacement Effects of foreign currency exchange differences Balance at September 30, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation Derecognition by replacement Effects of foreign currency exchange differences Balance at September 30, 2020 Carrying amounts at September 30, 2020	Land Transportation $ - $ 13,778,426 - 1,741,484 - (321,428) - (375,690) $ - $ 14,822,792 $ 1,092 $ 28,061,199 $ 1,092 $ 44,074,249 - 2,248,012 - (4,360,299) - (87,528) - (890,643) $ 1,092 $ 40,983,791 $ - $ 15,035,194 - 1,673,855 - (3,085,884) - (87,528) - (272,225) $ - $ 13,263,412 $ 1,092 $ 29,039,055 $ 1,092 $ 27,720,379 $ 36 $ 1,390,334 - 63,369 - 30,011 - (11,046) 1 1,008 $ 37 $ 1,473,676 $ - $ 459,587 - 59,845 - (11,046) - 988 $ - $ 509,374 $ 37 $ 964,302	Miscellaneous $ 58,193 19,732 - (447) $ 77,478 $ 72,736 $ 143,722 758 - - (723) $ 143,757 $ 69,524 20,119 - - (474) $ 89,169 $ 74,198 $ 54,588 $ 2,887 21 2,191 - 62 $ 5,161 $ 1,941 678 - 42 $ 2,661 $ 2,500	Total $ 13,836,619 1,761,216 (321,428) (376,137) $ 14,900,270 $ 28,135,027 $ 44,219,063 2,248,770 (4,360,299) (87,528) (891,366) $ 41,128,640 $ 15,104,718 1,693,974 (3,085,884) (87,528) (272,699) $ 13,352,581 $ 29,114,345 $ 27,776,059 $ 1,393,257 63,390 32,202 (11,046) 1,071 $ 1,478,874 $ 461,528 60,523 (11,046) 1,030 $ 512,035 $ 966,839 (Continued)

24 -

Cost Balance at January 1, 2021 Additions Disposals Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation Disposals Derecognition by replacement Effect of foreign currency exchange differences Balance at September 30, 2021 Carrying amounts at December 31, 2020 Carrying amounts at September 30, 2021	Land Transportation $ 38 $ 1,547,551 - 80,719 - (156,564) - - 1 (116) $ 39 $ 1,471,590 $ - $ 527,921 - 60,103 - (110,804) - - - (976) $ - $ 476,244 $ 38 $ 1,019,630 $ 39 $ 995,346	Miscellaneous $ 5,046 27 - - 89 $ 5,162 $ 2,441 722 - - 39 $ 3,202 $ 2,605 $ 1,960	Total $ 1,552,635 80,746 (156,564) - (26) $ 1,476,791 $ 530,362 60,825 (110,804) - (937) $ 479,446 $ 1,022,273 $ 997,345 (Concluded)

No impairment assessment was performed in the nine months ended September 30, 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 1-25 years Miscellaneous 1-10 years

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

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

Capitalized interest Capitalization rate		For the Nine Months	Ended September 30	Ended September 30
		2021 NT$ US$ (Note 6) $ - $ - -		2020
				NT$ US$ (Note 6) $ 1,656 $ 57 1.20%-1.84%

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.

25 -

2021

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases 2020	For the Three Months Ended September 30 NT$ US$ (Note 6) $ 8,528 $ 306 $ 32 $ 1 $ 8,560 $ 307	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			NT$ US$ (Note 6) $ 25,027 $ 899 $ 86 $ 3 $ 25,113 $ 902

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

15. BORROWINGS

a. Short-term loans

Secured borrowings (Note 25) Bank loans Unsecured borrowings Credit borrowings Short-term loans Interest rate		September 30, 2021 NT$ US$ (Note 6) $ 119,000 $ 4,273 4,597,000 165,063 $ 4,716,000 $ 169,336 0.80%-0.82%		December 31, 2020 NT$ US$ (Note 6) $ - $ - 5,643,000 198,139 $ 5,643,000 $ 198,139 0.80%-1.12%		September 30, 2020
						NT$ US$ (Note 6) $ - $ - 5,533,000 190,138 $ 5,533,000 $ 190,138 0.80%-1.12%

b. Short-term bills payable (Note 25)

Commercial paper Less: Unamortized discounts		September 30, 2021 NT$ US$ (Note 6) $ 7,555,000 $ 271,275 4,119 148 $ 7,550,881 $ 271,127		December 31, 2020 NT$ US$ (Note 6) $ 7,400,000 $ 259,832 3,353 118 $ 7,396,647 $ 259,714		September 30, 2020
						NT$ US$ (Note 6) $ 7,220,000 $ 248,110 4,195 144 $ 7,215,805 $ 247,966

26 -

c. Long-term borrowings

Secured bank loans (1) (Note 25) Unsecured bank loans (2) Less: Current portion Long-term borrowings		September 30, 2021 NT$ US$ (Note 6) $ 7,579,434 $ 272,152 15,210,000 546,140 22,789,434 818,292 6,155,837 221,035 $ 16,633,597 $ 597,257		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		September 30, 2020
						NT$ US$ (Note 6) $ 9,033,203 $ 310,419 13,173,176 452,686 22,206,379 763,105 3,078,647 105,795 $ 19,127,732 $ 657,310

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 December 2021 to August 2033 with floating interest rate ranges of 0.68%-3.65%, 0.77%-3.65% and 0.77%-3.65% as of September 30, 2021, December 31, 2020 and September 30, 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 September 2026 with same interest rate range of 0.63%-1.50% as of September 30, 2021, December 31, 2020 and September 30, 2020.

16. OTHER PAYABLES

Material consumption and repairs Remuneration of directors Fuel Salaries and bonuses Employees’ compensation Dock repairs Port charges Others		September 30, 2021 NT$ US$ (Note 6) $ 162,064 $ 5,819 154,648 5,553 123,953 4,451 93,676 3,363 66,816 2,399 65,188 2,341 35,265 1,266 244,128 8,766 $ 945,738 $ 33,958		December 31, 2020 NT$ US$ (Note 6) $ 107,790 $ 3,785 132,088 4,638 56,228 1,975 73,948 2,596 49,474 1,737 52,432 1,841 41,653 1,463 297,958 10,461 $ 811,571 $ 28,496		September 30, 2020
						NT$ US$ (Note 6) $ 170,418 $ 5,856 127,845 4,393 90,579 3,113 96,952 3,332 45,230 1,554 106,984 3,676 29,681 1,020 267,563 9,195 $ 935,252 $ 32,139

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$1,377 thousand (US$49 thousand), NT$1,936 thousand (US$67 thousand), NT$4,146 thousand (US$149 thousand) and NT$5,845 thousand (US$201 thousand) for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, respectively.

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18. EQUITY

a. Common share capital

Number of shares authorized (in thousands) Number of shares issued and fully paid (in thousands) September 30, 2021 NT$ US$ (Note 6) Shares authorized$ 8,800,000 $ 315,978 Shares issued $ 8,450,557 $ 303,431		September 30, 2021 December 31, 2020 September 30, 2020 880,000 880,000 880,000 845,056 845,056 845,056 December 31, 2020 September 30, 2020 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 8,800,000 $ 308,989 $ 8,800,000 $ 302,405 $ 8,450,557 $ 296,719 $ 8,450,557 $ 290,397	September 30, 2021 December 31, 2020 September 30, 2020 880,000 880,000 880,000 845,056 845,056 845,056 December 31, 2020 September 30, 2020 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 8,800,000 $ 308,989 $ 8,800,000 $ 302,405 $ 8,450,557 $ 296,719 $ 8,450,557 $ 290,397	September 30, 2021 December 31, 2020 September 30, 2020 880,000 880,000 880,000 845,056 845,056 845,056 December 31, 2020 September 30, 2020 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 8,800,000 $ 308,989 $ 8,800,000 $ 302,405 $ 8,450,557 $ 296,719 $ 8,450,557 $ 290,397

				NT$ US$ (Note 6) $ 8,800,000 $ 302,405 $ 8,450,557 $ 290,397

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		September 30, 2021 NT$ US$ (Note 6) $ 93,474 $ 3,356 5,428 195 16,195 582 65 2 $ 115,162 $ 4,135		December 31, 2020	December 31, 2020		September 30, 2020	September 30, 2020
		NT$ $ 93,474 5,428 16,195 65 $ 115,162		NT$ $ 93,474 5,428 16,197 64 $ 115,163	US$ (Note 6) $ 3,282 191 569 2 $ 4,044		NT$ $ 93,474 5,428 16,197 64 $ 115,163	US$ (Note 6) $ 3,212 186 557 2 $ 3,957

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, and offsetting losses of previous years. Providing that 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. 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.

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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.

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. In addition, The FSC issued Rule No. 1090150022 on March 31, 2021. Rule No. 1090150022 repealed Rule No.1010047490 on the same day and will repeal Rule No. 1010012865 effective on December 31, 2021.

The appropriations of earnings for 2020 and 2019 which have been approved in the shareholders’ meetings on July 13, 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 $ 3,141 $ 183,083 $ 6,292 1,022,797 36,725 - - 1,014,067 36,412 1,605,606 55,175 $ 2,124,341 $ 76,278 $ 1,788,689 $ 61,467	Appropriation of Earnings 2020 2019 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 87,477 $ 3,141 $ 183,083 $ 6,292 1,022,797 36,725 - - 1,014,067 36,412 1,605,606 55,175 $ 2,124,341 $ 76,278 $ 1,788,689 $ 61,467	Dividend Per Share	Dividend Per Share
		2020 NT$ US$ (Note 6) $ 87,477 $ 3,141 1,022,797 36,725 1,014,067 36,412 $ 2,124,341 $ 76,278		2020 NT$ $ 1.2	2019
					NT$ $ 1.9

d. Other equity items

New Taiwan dollars

		Unrealized
	Exchange	Valuation Gain
	Differences on	(Loss) on
	Translation of	Financial Assets
	the Financial	at Fair Value
	Statements of	through Other	Gain (Loss) on			Gains on
	Foreign	Comprehensive		Hedging		Property
	Operations	Income	Instruments		Revaluation
Balance at January 1, 2021	$ (4,360,468 )	$ 3,337,525	$	1	$	145
Exchange differences on translation of the financial
statements of foreign operations	(846,340 )	-		-		-
Unrealized valuation loss on financial assets at FVTOCI	-	(61,118 )		-		-
					(Continued)

29 -

			Unrealized	Unrealized
		Exchange	Valuation Gain
	Differences on			(Loss) on
	Translation of		Financial Assets
	the Financial		at	Fair Value
	Statements of		through Other		Gain (Loss) on			Gains on
		Foreign	Comprehensive			Hedging		Property
	Operations			Income	Instruments		Revaluation
Share of other comprehensive gain (loss) of associates
and joint ventures accounted for using the equity
method	$	(49,000 )	$	12,661	$	-	$		2
Disposal of investments in equity instruments designated
as at FVTOCI by associates		-		(692)		-			-
Balance at September 30, 2021	$	(5,255,808)	$	3,288,376	$	1	$	147
Balance at January 1, 2020	$	(2,330,970 )	$	4,246,275	$	2	$	133
Exchange differences on translation of the financial
statements of foreign operations		(1,135,305 )		-		-			-
Unrealized valuation gain loss on financial assets at
FVTOCI		-		(1,625,453 )		-			-
Share of other comprehensive gain (loss) of associates
and joint ventures accounted for using the equity
method		(59,875)		79		(1 )		12
Disposal of investments in equity instruments designated
as at FVTOCI by associates		-		(110)		-			-
Balance at September 30, 2020	$	(3,526,150)	$	2,620,791	$	1	$	145
							(Concluded)

U.S. dollars (Note 6)

Exchange Differences on Translation of 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 translation of the financial statements of foreign operations (30,389 ) - - Unrealized valuation gain (loss) on financial assets at FVTOCI - (2,195) - Share of other comprehensive gain (loss) of associates and joint ventures accounted for using the equity method (1,759 ) 455 - Disposal of investments in equity instruments designated as at FVTOCI by associates - (25 ) - Changes in translation adjustments (113,837) 44,353 - Balance at September 30, 2021 $ (188,718) $ 118,075 $ - Balance at January 1, 2020 $ (77,751 ) $ 141,637 $ - Exchange differences on translation of the financial statements of foreign operations (39,014 ) - - Unrealized valuation gain (loss) on financial assets at FVTOCI - (55,857 ) - Share of other comprehensive gain (loss) of associates and joint ventures accounted for using the equity method (2,058 ) 3 - Disposal of investments in equity instruments designated as at FVTOCI by associates - (4 ) - Changes in translation adjustments (2,351) 4,283 - Balance at September 30, 2020 $ (121,174) $ 90,062 $ -	Gains on Property Revaluation $ 5 - - - - -
	$ 5
	$ 4 - - - - 1
	$ 5

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19. REVENUE

a. Disaggregation of revenue

Transportation Vessel management Others		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
		2021 NT$ US$ (Note 6) $ 3,895,848 $ 139,887 2,225 80 11,709 420 $ 3,909,782 $ 140,387		2020
				NT$ US$ (Note 6) $ 2,306,472 $ 79,260 39,220 1,348 4,257 146 $ 2,349,949 $ 80,754

Transportation Vessel management Others		For the Nine Months	Ended September 30	Ended September 30
		2021 NT$ US$ (Note 6) $ 9,649,533 $ 346,482 6,958 250 43,739 1,570 $ 9,700,230 $ 348,302		2020
				NT$ US$ (Note 6) $ 5,687,440 $ 195,445 111,624 3,836 34,646 1,190 $ 5,833,710 $ 200,471

b. Contract balances

Contract assets - transportation services		September 30, 2021 NT$ US$ (Note 6) $ 326,281 $ 11,716		December 31, 2020 NT$ US$ (Note 6) $ 172,667 $ 6,063		September 30, 2020
						NT$ US$ (Note 6) $ 176,602 $ 6,069

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. No impairment losses of contract assets were recognized for nine months ended September 30, 2021 and 2020, respectively.

The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Group’s satisfaction of performance obligations and the respective customer’s payment. As of September 30, 2021, December 31, 2020 and September 30, 2020, the balance of contract liabilities were not material.

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20. NET PROFIT

a. Other operating revenue

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

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ - $ - - - - - 198,895 7,142 $ 198,895 $ 7,142 For the Nine Months		2020
	NT$ US$ (Note 6) $ 2,782 $ 96 (2,809) (97) (27) (1) 247,409 8,502 $ 247,382 $ 8,501 Ended September 30
2021 2020 NT$ US$ (Note 6) NT$ US$ (Note 6) $ 17,193 $ 617 $ 2,782 $ 96 (11,206) (402) (2,809) (97) 5,987 215 (27) (1) 236,509 8,492 282,669 9,714 $ 242,496 $ 8,707 $ 282,642 $ 9,713 For the Three Months Ended September 30		2020

2021 NT$ US$ (Note 6) $ 85,282 $ 3,062 For the Nine Months		2020
	NT$ US$ (Note 6) $ 88,088 $ 3,027 Ended September 30
2021 NT$ US$ (Note 6) $ 260,527 $ 9,355		2020
		NT$ US$ (Note 6) $ 322,216 $ 11,072

b. Finance costs

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c. Depreciation and amortization

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ 545,150 $ 19,575 6,703 241 $ 551,853 $ 19,816 $ 6,764 $ 243 For the Nine Months			2020
		NT$ US$ (Note 6) $ 587,854 $ 20,200 8,146 280 $ 596,000 $ 20,480 $ 3,994 $ 137 Ended September 30
2021			2020


	2021 NT$ US$ (Note 6) $ 321,660 $ 11,550 6,269 225 327,929 11,775 5,670 204 1,377 49 7,047 253 39,025 1,401 $ 374,001 $ 13,429 $ 286,387 $ 10,283 87,614 3,146 $ 374,001 $ 13,429			2020
				NT$ US$ (Note 6) $ 297,239 $ 10,214 6,800 234 304,039 10,448 6,469 222 1,936 67 8,405 289 24,532 843 $ 336,976 $ 11,580 $ 279,241 $ 9,596 57,735 1,984 $ 336,976 $ 11,580

d. Employee benefits expense

33 -

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 Nine Months	Ended September 30	Ended September 30
		2021 NT$ US$ (Note 6) $ 918,142 $ 32,967 18,856 677 936,998 33,644 16,379 588 4,146 149 20,525 737 93,594 3,361 $1,051,117 $ 37,742 $ 830,311 $ 29,814 220,806 7,928 $1,051,117 $ 37,742		2020
				NT$ US$ (Note 6) $ 855,060 $ 29,383 18,795 646 873,855 30,029 17,809 612 5,845 201 23,654 813 68,069 2,339 $ 965,578 $ 33,181 $ 811,888 $ 27,900 153,690 5,281 $ 965,578 $ 33,181

e. Employees’ compensation and remuneration of directors

The Company accrued employees’ compensation and remuneration of directors at the rates 1% and no higher than 1%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. For the three months and nine months ended September 30, 2021 and 2020, based on estimated annual profit, both employees’ compensation and remuneration of directors were accrued at the rate of 1%. The amounts were as follows:

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ 18,978 $ 681 $ 18,978 $ 681 For the Nine Months		2020
	NT$ US$ (Note 6) $ 4,146 $ 142 $ 4,146 $ 142 Ended September 30
2021 NT$ US$ (Note 6) $ 32,791 $ 1,177 $ 32,791 $ 1,177		2020
		NT$ US$ (Note 6) $ 4,146 $ 142 $ 4,146 $ 142

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.

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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 $ 295 $ 8,390 $ 295		2019
				NT$ US$ (Note 6) $ 17,590 $ 587 $ 17,590 $ 587

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 benefit recognized in profit or loss

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ (60) $ (2) - - - - (60) (2) 9,950 357 $ 9,890 $ 355 For the Nine Months		2020
	NT$ US$ (Note 6) $ (59) $ (2) - - (1,493) (51) (1,552) (53) (869) (30) $ (2,421) $ (83) Ended September 30
2021 NT$ US$ (Note 6) $ 16,176 $ 581 - - (17,251) (619) (1,075) (38) 10,868 390 $ 9,793 $ 352		2020
		NT$ US$ (Note 6) $ 11,377 $ 391 2,254 77 (61,736) (2,121) (48,105) (1,653) 2,801 96 $ (45,304) $ (1,557)

35 -

b. Income tax assessments

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

22. EARNINGS PER SHARE

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

a. Net profit for the year

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ 1,780,946 $ 63,947 For the Nine Months		2020
	NT$ US$ (Note 6) $ 743,046 $ 25,534 Ended September 30
2021		2020
		NT$ US$ (Note 6) $ 459,336 $ 15,785

b. The weighted average number of ordinary shares outstanding (in thousands of shares) is as follows:

Weighted-average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employee’s compensation Weighted-average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended September 30 2021 2020 845,056 845,056 478 138 845,534 845,194	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2021 845,056 536 845,592	2020 845,056 297 845,353

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.

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23. FINANCIAL INSTRUMENTS

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

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

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

September 30, 2021 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 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	Level 1 $ 53,806 50,922 - $ 104,728 $ 6,462,982 - 380,880 $ 6,843,862 $ - $ 1,932 1,828 - $ 3,760 $ 232,064 - 13,676 $ 245,740 $ -	Level 2 $ 1,544,254 - 11,463 $ 1,555,717 $ - - - $ - $ 199,920 $ 55,449 - 412 $ 55,861 $ - - - $ - $ 7,178	Level 3 $ - - - $ - $ - 2,257,898 - $ 2,257,898 $ - $ - - - $ - $ - 81,074 - $ 81,074 $ -	Total $ 1,598,060 50,922 11,463 $ 1,660,445 $ 6,462,982 2,257,898 380,880 $ 9,101,760 $ 199,920 $ 57,381 1,828 412 $ 59,621 $ 232,064 81,074 13,676 $ 326,814 $ 7,178

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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 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 September 30, 2020 New Taiwan dollars Financial assets at FVTPL Mutual funds Derivative instruments Domestic listed shares	Level 1 $ 45,394 31,318 - $ 76,712 $ 6,404,490 - 445,135 $ 6,849,625 $ - $ 1,594 1,100 - $ 2,694 $ 224,877 - 15,630 $ 240,507 $ - Level 1 $ 38,418 - 23,502 $ 61,920	Level 2 $ 1,511,959 - 41,921 $ 1,553,880 $ - - - $ - $ 307,897 $ 53,088 - 1,472 $ 54,560 $ - - - $ - $ 10,811 Level 2 $ 1,428,692 11,537 - $ 1,440,229	Level 3 $ - - - $ - $ - 2,283,860 - $ 2,283,860 $ - $ - - - $ - $ - 80,192 - $ 80,192 $ - Level 3 $ - - - $ -	Total $ 1,557,353 31,318 41,921 $ 1,630,592 $ 6,404,490 2,283,860 445,135 $ 9,133,485 $ 307,897 $ 54,682 1,100 1,472 $ 57,254 $ 224,877 80,192 15,630 $ 320,699 $ 10,811 Total $ 1,467,110 11,537 23,502 $ 1,502,149 (Continued)

38 -

Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments U.S. dollars (Note 6) Financial assets at FVTPL Mutual funds Derivative instruments Domestic listed shares Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign listed shares Financial liabilities at FVTPL Derivative instruments	Level 1 $ 5,965,795 - 440,277 $ 6,406,072 $ - $ 1,320 - 808 $ 2,128 $ 205,010 - 15,130 $ 220,140 $ -	Level 2 $ - - - $ - $ 353,980 $ 49,096 396 - $ 49,492 $ - - - $ - $ 12,164	Level 3 $ - 2,042,106 - $ 2,042,106 $ - $ - - - $ - $ - 70,175 - $ 70,175 $ -	Total $ 5,965,795 2,042,106 440,277 $ 8,448,178 $ 353,980 $ 50,416 396 808 $ 51,620 $ 205,010 70,175 15,130 $ 290,315 $ 12,164 (Concluded)

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 Valuation Techniques and Inputs

Derivatives - cross-currency Discounted cash flow. swap contracts

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.

Derivatives - interest rate swap Discounted cash flow. contracts

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.

Mutual funds

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.

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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.

c. Categories of financial instruments

Financial assets FVTPL Mandatorily at FVTPL Financial assets at amortized cost (1) Financial assets at FVTOCI - equity instruments Financial liabilities FVTPL Held for trading Amortized cost (2)	September 30, 2021 NT$ US$ (Note 6) $ 1,660,445 $ 59,621 15,580,374 559,439 9,101,760 326,814 199,920 7,178 36,152,452 1,298,113	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	September 30, 2020
			NT$ US$ (Note 6) $ 1,502,149 $ 51,620 17,163,046 589,795 8,448,178 290,315 353,980 12,164 36,097,518 1,240,465

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

a) Foreign currency risk

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

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

Sensitivity analysis

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

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	USD (i)	USD (i)
	For the Nine Months	Ended September 30
	2021 2020 NT$ US$ (Note 6) NT$ US$ (Note 6) $ (2,747) $ (99) $ (4,079) $ (140) AUD (ii)	2020
	For the Nine Months	Ended September 30
	2021 NT$ US$ (Note 6) $ 30,651 $ 1,101	2020
		NT$ US$ (Note 6) $ 54,643 $ 1,878

i. This was mainly attributable to the USD trade receivables held by the Group.
ii. This was mainly attributable to the exposure to the Group’s AUD denominated bank loans.
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b) Interest rate risk

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

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	September 30, 2021 NT$ US$ (Note 6) $ 12,599,313 $ 452,399 16,361,572 587,489 1,461,290 52,470 18,694,743 671,265	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	September 30, 2020
			NT$ US$ (Note 6) $ 14,059,269 $ 483,136 17,536,931 602,644 1,795,352 61,696 17,418,253 598,565

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 profit for the nine months ended September 30, 2021 and 2020 would decrease/increase by NT$64,625 thousand (US$2,320 thousand) and NT$58,586 thousand (US$2,013 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.

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Sensitivity analysis

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

If equity prices had been 10% higher/lower, pre-tax profit for the nine months ended September 30, 2021 and 2020 would have increased/decreased by NT$164,898 thousand (US$5,921 thousand) and NT$149,061 thousand (US$5,122 thousand), as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the s nine months ended September 30, 2021 and 2020 would increase/decrease by NT$910,176 thousand (US$32,681 thousand) and NT$844,818 thousand (US$29,032 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 six months ended 2021 and 2020, the credit risk concentrations were immaterial for any counterparty at any point in time.

3) Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group had available unutilized short-term bank loan facilities of NT$8,230,950 thousand (US$295,546 thousand), NT$9,737,200 thousand (US$341,896 thousand) and NT$11,061,520 thousand (US$380,121 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.

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

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

September 30, 2021

On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,096,137 $ 39,359 Floating interest rate 5,180,736 186,023 Fixed interest rate 13,642,739 489,865 $ 19,919,612 $ 715,247 December 31, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 960,784 $ 33,736 Floating interest rate 3,450,503 121,155 Fixed interest rate 13,551,906 475,839 $ 17,963,193 $ 630,730 September 30, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,142,334 $ 39,255 Floating interest rate 2,680,437 92,111 Fixed interest rate 13,239,168 454,954 $ 17,061,939 $ 586,320	On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,096,137 $ 39,359 Floating interest rate 5,180,736 186,023 Fixed interest rate 13,642,739 489,865 $ 19,919,612 $ 715,247 December 31, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 960,784 $ 33,736 Floating interest rate 3,450,503 121,155 Fixed interest rate 13,551,906 475,839 $ 17,963,193 $ 630,730 September 30, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Non-interest bearing $ 1,142,334 $ 39,255 Floating interest rate 2,680,437 92,111 Fixed interest rate 13,239,168 454,954 $ 17,061,939 $ 586,320	1-5 Years NT$ US$ (Note 6) $ - $ - 13,337,449 478,903 2,849,175 102,304 $ 16,186,624 $ 581,207 1-5 Years NT$ US$ (Note 6) $ - $ - 13,860,373 486,670 4,414,357 154,998 $ 18,274,730 $ 641,668 1-5 Years NT$ US$ (Note 6) $ - $ - 14,337,209 492,688 4,549,556 156,342 $ 18,886,765 $ 649,030	More Than 5 Years	More Than 5 Years
			NT$ US$ (Note 6) $ - $ - 553,288 19,867 - - $ 553,288 $ 19,867 More Than 5 Years
			NT$ US$ (Note 6) $ - $ - 905,132 31,781 - - $ 905,132 $ 31,781 More Than 5 Years
Non-interest bearing Floating interest rate Fixed interest rate
	NT$ $ 1,142,334 2,680,437 13,239,168 $ 17,061,939	NT$ $ - 14,337,209 4,549,556 $ 18,886,765	NT$ $ - 800,942 - $ 800,942	US$ (Note 6) $ - 27,524 - $ 27,524

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 non-derivative 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.

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

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

September 30, 2021

On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (8,039) $ (289) Gross settled Cross-currency swaps Inflows $ 222,834 $ 8,001 Outflows (236,771) (8,502) $ (13,937) $ (501) December 31, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (6,963) $ (244) Gross settled Cross-currency swaps Inflows $ 255,260 $ 8,963 Outflows (256,981) (9,023) $ (1,721) $ (60) September 30, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (7,930) $ (273) Gross settled Cross-currency swaps Inflows $ 232,427 $ 7,987 Outflows (250,420) (8,605) $ (17,993) $ ( 618)	On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (8,039) $ (289) Gross settled Cross-currency swaps Inflows $ 222,834 $ 8,001 Outflows (236,771) (8,502) $ (13,937) $ (501) December 31, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (6,963) $ (244) Gross settled Cross-currency swaps Inflows $ 255,260 $ 8,963 Outflows (256,981) (9,023) $ (1,721) $ (60) September 30, 2020 On Demand or Within 1 Year NT$ US$ (Note 6) Net settled Interest rate swaps $ (7,930) $ (273) Gross settled Cross-currency swaps Inflows $ 232,427 $ 7,987 Outflows (250,420) (8,605) $ (17,993) $ ( 618)	1-5 Years NT$ US$ (Note 6) $ (57,685) $ (2,071) $ 150,592 $ 5,407 (143,717) (5,160) $ 6,875 $ 247 1-5 Years NT$ US$ (Note 6) $ (71,714) $ (2,518) $ 350,034 $ 12,291 (329,316) (11,563) $ 20,718 $ 728 1-5 Years NT$ US$ (Note 6) $ (82,110) $ (2,822) $ 323,260 $ 11,109 (325,201) (11,175) $ (1,941) $ (66)	More Than	5 Years
			NT$ $ (20,701) $ - - $ - More Than	US$ (Note 6) $ (743) $ - - $ - 5 Years
			NT$ $ (41,376) $ - - $ - More Than	US$ (Note 6) $ (1,453) $ - - $ - 5 Years
Net settled Interest rate swaps Gross settled Cross-currency swaps Inflows Outflows
	NT$ $ (7,930) $ 232,427 (250,420) $ (17,993)	NT$ $ (82,110) $ 323,260 (325,201) $ (1,941)	NT$ $ (43,529) $ - - $ -	US$ (Note 6) $ (1,496) $ - - $ -

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24. TRANSACTIONS WITH RELATED PARTIES

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

a. Related party name and category

Related Party Name
Asia Cement Corporation (Asia Cement)

Winyield Investment Ltd. (Winyield)

Cape Asia Ltd. (Cape Asia)

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

New Cape Asia Shipping Ltd.(New Cape Asia Shipping)

Drive Catalyst SPC - SP Tranche Two

Drive Catalyst SPC - SP Tranche Three

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

Baodarun 1 Shipping Ltd

Baodarun 2 Shipping Ltd

Baodarun 3 Shipping Ltd

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
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
Related party in substance
Related party in substance
Related party in substance

b. Operating revenue

Account Items Freight revenue	Related Party Category/Name Investors that have significant influence over the Group Asia Cement Related party in substance Associate		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
			2021 NT$ US$ (Note 6) $ 192,797 $ 6,923 15,131 543 (114) (4) $ 207,814 $ 7,462		2020
					NT$ US$ (Note 6) $ 169,935 $ 5,840 17,185 591 58,121 1,997 $ 245,241 $ 8,428

Account Items Freight revenue	Related Party Category/Name Investors that have significant influence over the Group Asia Cement Related party in substance Associates		For the Nine Months	Ended September 30	Ended September 30
			2021 NT$ US$ (Note 6) $ 583,971 $ 20,968 60,029 2,155 30,438 1,093 $ 674,438 $ 24,217		2020
					NT$ US$ (Note 6) $ 555,321 $ 19,083 112,672 3,872 79,509 2,732 $ 747,502 $ 25,687

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

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c. Purchases

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ 47 $ 2 For the Nine Months		2020
	NT$ US$ (Note 6) $ 1,861 $ 64 Ended September 30
2021		2020
		NT$ US$ (Note 6) $ 23,175 $ 796

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 Items Contract assets	Related Party Category/Name Investors that have significant influence over the Group Asia Cement		September 30, 2021 NT$ US$ (Note 6) $ 9,094 $ 327		December 31, 2020		September 30, 2020
					NT$ US$ (Note 6) $ - $ -		NT$ US$ (Note 6) $ - $ -

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

Account Items Trade receivables from related parties Other receivables	Related Party Category/Name Investors that have significant influence over the Group Asia Cement Associate Associates ITG-Uming Shipping		September 30, 2021 NT$ US$ (Note 6) $ 35,842 $ 1,287 - - $ 35,842 $ 1,287 $ 26,736 $ 960		December 31, 2020		September 30, 2020
					NT$ US$ (Note 6) $ 71,353 $ 2,505 21,895 769 $ 93,248 $ 3,274 $ 27,341 $ 960		NT$ US$ (Note 6) $ 35,541 $ 1,221 21,163 727 $ 56,704 $ 1,948 $ 27,936 $ 960

The outstanding trade receivables from related parties are unsecured. No impairment loss was recognized for trade receivables from related parties for the nine months ended September 30, 2021 and 2020.

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

Account Items Trade payables - related parties	Related Party Category/Name Related party in substance		September 30, 2021 NT$ US$ (Note 6) $ 70 $ 3		December 31, 2020		September 30, 2020
					NT$ US$ (Note 6) $ 391 $ 14		NT$ US$ (Note 6) $ 64 $ 2

f. Prepayments (classified as other current assets)

Account Items Prepaid expenses	Related Party Category/Name Related party in substance Asia Engineering		September 30, 2021 NT$ US$ (Note 6) $ - $ -		December 31, 2020		September 30, 2020
					NT$ US$ (Note 6) $ - $ -		NT$ US$ (Note 6) $ 1,862 $ 64

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g. Disposal of financial assets

For the nine months ended September 30, 2021: None.

For the nine months ended September 30, 2020

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

h. Loans to related parties

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

i. Endorsements and guarantees

Related Party Category/Name Associates Amount endorsed Amount utilized Liabilities recognized Related parties in substance Amount endorsed Amount utilized Liabilities recognized		September 30, 2021 NT$ US$ (Note 6) $ 57,267 $ 2,056 $ 57,267 $ 2,056 $ - $ - $ 679,881 $ 24,412 $ 573,679 $ 20,599 $ - $ -		December 31, 2020 NT$ US$ (Note 6) $ 69,776 $ 2,450 $ 69,776 $ 2,450 $ - $ - $ 116,280 $ 4,083 $ - $ - $ - $ -		September 30, 2020
						NT$ US$ (Note 6) $ 75,114 $ 2,581 $ 75,114 $ 2,581 $ - $ - $ 116,280 $ 3,996 $ 23,256 $ 799 $ - $ -

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

j. Others

1) Temporary receipts (classified as other current liabilities)

Related Party Category		September 30, 2021 NT$ US$ (Note 6) $ 15,000 $ 539		December 31, 2020 NT$ US$ (Note 6) $ 15,000 $ 527		September 30, 2020
Investors that have significant influence over the Group Asia Cement						NT$ US$ (Note 6) $ 15,000 $ 515

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

48 -

2) Operating expense - rent expense

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ 5,011 $ 180 For the Nine Months		2020
	NT$ US$ (Note 6) $ 5,013 $ 172 Ended September 30
2021 NT$ US$ (Note 6) $ 15,032 $ 540		2020
		NT$ US$ (Note 6) $ 15,040 $ 517

Note : Refundable deposits for the lease were NT$4,573 thousand (US$164 thousand) as of September 30, 2021, December 31, 2020 and September 30, 2020.

3) Other revenue

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
2021 NT$ US$ (Note 6) $ - $ - For the Nine Months		2020
	NT$ US$ (Note 6) $ - $ - Ended September 30
2021 NT$ US$ (Note 6) $ 6,150 $ 221		2020
		NT$ US$ (Note 6) $ 6,970 $ 240

Note : Remuneration of directors.

4) The nature of the Group’s transaction with Drive Catalyst SPC is acquisition or disposal of Portfolio through Drive Catalyst SPC’s platform. The portfolio’s decision is made and managed by the investment committee which is composed of the Group and other investors. In April, 2021, the Group subscribed for 4,000 shares of Catalyst Tranche Two and Catalyst Tranche Three, respectively, with a total amount of $225,376 thousand.
k. Compensation of key management personnel

Short-term employee benefits Post-employment benefits		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30
		2021 NT$ US$ (Note 6) $ 30,976 $ 1,112 642 23 $ 31,618 $ 1,135		2020
				NT$ US$ (Note 6) $ 13,199 $ 454 714 25 $ 13,913 $ 479

49 -

Short-term employee benefits Post-employment benefits		For the Nine Months	Ended September 30	Ended September 30
		2021 NT$ US$ (Note 6) $ 61,784 $ 2,219 1,927 69 $ 63,711 $ 2,288		2020
				NT$ US$ (Note 6) $ 25,429 $ 874 2,142 73 $ 27,571 $ 947

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

25. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

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

Property, plant and equipment (transportation) Financial assets at FVTOCI - current Pledged deposits (classified as financial assets at amortized cost - current) Pledged deposits (classified as refundable deposits)		September 30, 2021 NT$ US$ (Note 6) $ 25,184,391 $ 904,287 2,612,720 93,814 139,250 5,000 41,257 1,481 $ 27,977,618 $ 1,004,582		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		September 30, 2020	September 30, 2020
		NT$ $ 25,184,391 2,612,720 139,250 41,257 $ 27,977,618		NT$ $ 27,050,057 2,586,806 142,400 46,485 $ 29,825,748		NT$ $ 26,210,913 2,415,973 145,500 62,248 $ 28,834,634	US$ (Note 6) $ 900,719 83,023 5,000 2,139 $ 990,881

26. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

a. Significant commitments
1) The Company entered into a long-term agreement with Taiwan Power Company (TPC) to provide voyage charter services of Panama Xtreme vessel on the pacific route through April 2024.
2) In November 2020, U-Ming Singapore entered into a 10-year Time Charter Contract 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$255,737 thousand. As of September 30, 2021, U-Ming Singapore had paid US$25,574 thousand, and the contract obligations will begin to be fulfilled after the completion of shipbuilding.
50 -
3) In January 2021, U-Ming Singapore entered into a shipbuilding contract with Qingdao Beihai Shipbuilding Heavy Industry Co., Ltd. to construct 4 bulk carriers. The total contract amount was US$201,400 thousand. As of September 30, 2021, U-Ming Singapore has paid US$20,140 thousand, and the contract obligations will 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 4 bulk carries. The total contract amount was US$144,800 thousand. As of September 30, 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. In May 2021, the Company, U-Ming Hong Kong and Oshima Shipbuilding Co., Ltd signed a tripartite agreement to transfer one of the bulk carriers to the Company. As of September 30, 2021, the Company has paid US$10,860 thousand.
5) U-Ming Marine Offshore entered into shipbuilding contract with Marsun Public Company Limited to construct 2 crew transfer vessels. The total contract amount was US$11,297 thousand. As of September 30, 2021, U-Ming Marine Offshore has paid US$2,259 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 has ravaged globally since 2020. However, the market freight rate has been gradually returning to a reasonable level, and the Group operation has returned to normal. The Group assessed that there was no doubts about continued operations, asset impairment, and financing risks at this stage.

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

September 30, 2021

					Carrying
		Foreign			Amount
		Currency		(In Thousands
	(In Thousands)		Exchange Rate		of NTD)
Financial assets
Monetary items
USD	$	4,504	27.850 (USD:NTD)	$	125,428
USD		132	6.4854 (USD:RMB)		3,665
AUD		383	0.7207 (AUD:USD)		7,678
				$	136,771

(Continued)

51 -

					Carrying	Carrying
		Foreign			Amount
	Currency			(In		Thousands
	(In Thousands)		Exchange Rate		of NTD)
Non-monetary items
Financial assets at FVTOCI
HKD	$	106,510	0.1284 (HKD:USD)	$		380,880
Derivative financial assets
AUD		12,373	0.7207 (AUD:USD)			11,463
				$		392,343
Financial liabilities
Monetary items
USD		3,649	27.850 (USD:NTD)	$		101,620
AUD		15,655	0.7207 (AUD:USD)			314,188
				$		415,808
Non-monetary items
Derivative financial liabilities
AUD		3,002	0.7207 (AUD:USD)	$		9,225
						(Concluded)
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
				$		68,073
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
						(Continued)

52 -

					Carrying	Carrying
		Foreign			Amount
	Currency			(In		Thousands
	(In Thousands)		Exchange Rate		of NTD)
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)
September 30, 2020
					Carrying
		Foreign			Amount
	Currency			(In		Thousands
	(In Thousands)		Exchange Rate		of NTD)
Financial assets
Monetary items
USD	$	2,343	29.100 (USD:NTD)	$		68,177
USD		792	6.8101 (USD:RMB)			23,051
				$		91,228
Non-monetary items
Financial assets at FVTOCI
HKD		117,282	0.1290 (HKD:USD)	$		440,277
Financial liabilities
Monetary items
USD	$	1,733	29.100 (USD:NTD)	$		50,439
AUD		26,378	0.7119 (AUD:USD)			546,419
				$		596,858
Non-monetary items
Derivative instruments
AUD		26,327	0.7119 (AUD:USD)	$		31,740

53 -

For the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, realized and unrealized foreign exchange losses were NT$(14,021) thousand (US$ 503 thousand), NT$(34,484) thousand (US$(1,185) thousand), NT$(34,166) thousand (US$1,227 thousand) and NT$(34,476) thousand (US$(1,111) 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:
1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint venture). (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)
54 -
a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period
c) The amount of property transactions and the amount of the resultant gains or losses
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes
e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services
d. Information of major shareholders ： List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 9)

30. SEGMENT INFORMATION

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

a. Segment revenues and results

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

	Segment	Re	venues	Segment P	Segment P	rofits
For t	he Nine Months	E	nded September 30	For the Nine Months	En	ded September 30
2021	US$ (Note 6) $ 348,303 8,707 $ 357,010		2020	2021 NT$ US$ (Note 6) $ 2,025,368 $ 72,724 242,112 8,693 2,267,480 81,417 897,915 32,241 $ 3,165,395 $ 113,658		2020
NT$ $ 9,700,230 242,496 $ 9,942,726			NT$ $ 5,833,710 282,642 $ 6,116,352			NT$ US$ (Note 6) $ (53,952 ) $ (1,854 ) 276,428 9,499 222,476 7,645 191,556 6,583 $ 414,032 $ 14,228

Reporting income is generated from transactions with external parties. There are no inter-segment transactions for the nine months ended September 30, 2021 and 2020, respectively.

Segment revenue represents the revenue earned by each segment. The amount is to provide the management the basis to allocate resources to segments and to evaluate performances.

55 -

b. Segment total assets and liabilities

Segment assets Marine transportation Investment Others Consolidated total assets Segment liabilities Marine transportation Investment Consolidated total liabilities		September 30, 2021 NT$ US$ (Note 6) $ 50,452,025 $ 1,811,563 6,928,621 248,784 3,781,037 135,764 $ 61,161,683 $ 2,196,111 $ 36,603,871 $ 1,314,322 184,621 6,629 $ 36,788,492 $ 1,320,951		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		September 30, 2020
						NT$ US$ (Note 6) $ 50,653,566 $ 1,740,672 6,436,862 221,198 2,942,645 101,122 $ 60,033,073 $ 2,062,992 $ 36,887,785 $ 1,267,621 268,769 9,237 $ 37,156,554 $ 1,276,858

56 -

TABLE 1

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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	Eagle Winyield New Cape Asia Shipping Cape Asia (III) Cape Asia	Other receivable - related parties Long-term receivables - related parties Long-term receivables - related parties Long-term receivables - related parties Long-term receivables - related parties	Y Y Y Y Y	2,046,975 (US$ 73,500) $ 709,741 (US$ 25,484) 83,549 (US$ 3,000) 83,550 (US$ 3,000) 2,785 (US$ 100)	2,019,125 (US$ 72,500) $ 668,640 (US$ 24,000) 83,549 (US$ 3,000) 69,625 (US$ 2,500) 2,785 (US$ 100)	1,865,950 (US$ 67,000) $ 619,228 (US$ 22,234) (Note c) 73,489 (US$ 2,639) 66,560 (US$ 2,390) 2,785 (US$ 100)	0.52725%- 0.534% - - - -	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 $9,850,932 (US$ 353,714) 30% of net worth of subsidiary $9,850,932 (US$353,714) 30% of net worth of subsidiary $9,850,932 (US$353,714) 30% of net worth of subsidiary $9,850,932 (US$353,714) 30% of net worth of subsidiary $9,850,932 (US$353,714)	40% of net worth of subsidiary $13,134,576 (US$471,619) 40% of net worth of subsidiary $13,134,576 (US$471,619) 40% of net worth of subsidiary $13,134,576 (US$471,619) 40% of net worth of subsidiary $13,134,576 (US$471,619) 40% of net worth of subsidiary $13,134,576 (US$471,619)
2	U-Ming Hong Kong	ITG-U-Ming Shipping	Other receivables - related parties	Y	40,940 (US$ 1,470)	40,940 (US$ 1,470)	26,736 (US$ 960)	-	Short-term financing	-	Short-term financing	-	-	-	30% of net worth of subsidiary $2,558,351 (US$91,862)	40% of net worth of subsidiary $3,411,134 (US$122,482)

Note a: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$27.85 as of September 30, 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$75,350 thousand (US$2,706 thousand) offset against long-term receivables - related parties.

57 -

TABLE 2

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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 U-Ming Offshore	A subsidiary A subsidiary A subsidiary	50% of net worth of the Company $12,186,596 (US$437,580) 50% of net worth of the Company $12,186,596 (US$437,580) 50% of net worth of the Company $12,186,596 (US$437,580)	$ 6,642,391 (US$ 238,506) 1,223,172 (US$ 43,920) 283,155 (US$ 10,167)	$ 6,417,217 (US$ 230,421) 907,353 (US$ 32,580) 251,693 (US$ 9,037)	$ 6,417,217 (US$ 230,421) 907,353 (US$ 32,580) 251,693 (US$ 9,037)	$ - - -	26.33% 3.72% 1.03%	100% of net worth of the Company $24,373,191 (US$875,159) 100% of net worth of the Company $24,373,191 (US$875,159) 100% of net worth of the Company $24,373,191 (US$875,159)	Y Y Y	- - -	- - -
1	U-Ming Singapore	Winyield	An investee accounted for using the equity method by subsidiary	50% of net worth of the subsidiary $16,418,220 (US$589,523)	68,233 (US$ 2,450)	57,267 (US$ 2,056)	57,267 (US$ 2,056)	-	0.17%	100% of net worth of the subsidiary $32,836,440 (US$1,179,046)	-	-	-
2	U-Ming Hong Kong	Baodarun 1 Shipping Ltd Baodarun 2 Shipping Ltd Baodarun 3 Shipping Ltd	Related party in substance Related party in substance Related party in substance	50% of net worth of the subsidiary $4,263,918 (US$153,103) 50% of net worth of the subsidiary $4,263,918 (US$153,103) 50% of net worth of the subsidiary $4,263,918 (US$153,103)	$ 177,405 (US$ 6,370) 177,405 (US$ 6,370) 208,791 (US$ 7,497)	$ 177,405 (US$ 6,370) 177,405 (US$ 6,370) 208,791 (US$ 7,497)	$ 177,405 (US$ 6,370) 177,405 (US$ 6,370) 208,791 (US$ 7,497)	- - -	2.08% 2.08% 2.45%	100% of net worth of the Company $8,527,836 (US$306,206) 100% of net worth of the Company $8,527,836 (US$306,206) 100% of net worth of the Company $8,527,836 (US$306,206)	- - -	- - -	- - -
3	Yue-Li	Da Ju Fiber	The subsidiary is its supervisor	50% of net worth of the subsidiary $1,635,113 (US$58,711)	116,280 (US$ 4,175)	116,280 (US$ 4,175)	10,078 (US$ 362)	-	3.56%	100% of net worth of the subsidiary $3,270,226 (US$117,423)	-	-	-

Note a: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$27.85 as of September 30, 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.

58 -

TABLE 3

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD SEPTEMBER 30, 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		September 30, 2021	September 30, 2021	September 30, 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 Yue-Tung	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 Oriental Union Chemical Corp. CSBC Corporation, Taiwan Far Eastern New Century Corporation Far Eastern Department Stores Ltd. Far EasTone Telecommunications Co., Ltd. Everest Textile Co., Ltd. Da Ju Fiber Co., Ltd. GIGA-BYTE TECHNOLOGY CO., LTD. Phison Electronics Corp. Common stocks Far Eastern International Bank Asia Cement Corporation Far Eastern New Century Corporation	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 chairman of the parent company is the same The subsidiary is its director The chairman of the parent company is the same The chairman of the parent company is the same The chairman of the parent company is the same The chairman of the parent company is its director The subsidiary is its supervisor None None 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	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 Financial assets at fair value through other comprehensive income - current Same as above Same as above	31,180 82,536 1,793 331 99 4 91,487 154,125 13,240 4,862 4,671 1,516 1,769 2 7 31,933 300 66 136,728 7,628 8,057	$ 930,737 862,505 81,760 20,357 2,230 97 963,203 1,603,103 603,748 109,633 107,898 45,247 39,449 113 68 859,035 26,040 24,882 1,428,808 347,858 240,506	$ 33,420 30,970 2,936 731 80 3 34,585 57,831 21,679 3,937 3,874 1,625 1,416 4 2 30,845 935 893 51,304 12,490 8,636	1 2 - - - - 18 4 - 1 1 - - - - 19 - - 4 - -	$ 930,737 862,505 81,760 20,357 2,230 97 963,203 1,603,103 603,748 109,633 107,898 45,247 39,449 113 68 859,035 26,040 24,882 1,428,808 347,858 240,506	$ 33,420 30,970 2,936 731 80 3 34,585 57,831 21,679 3,937 3,874 1,625 1,416 4 2 30,845 935 893 51,304 12,490 8,636	10,000 - 1,500 - - - - 94,166 10,600 2,000 - - - - - - - - 11,282 7,585 8,000	$ 298,500 - 68,400 - - - - 984,033 483,360 45,100 - - - - - - - - 117,901 345,876 238,800	$ 10,718 - 2,456 - - - - 35,333 17,356 1,619 - - - - - - - - 4,233 12,419 8,575	(Note a) - (Note a) - - - - (Note a) (Note a) (Note a) - - - - - - - - (Note a) (Note a) (Note a)

(Continued)

59 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		September 30, 2021	September 30, 2021	September 30, 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 Singapore U-Ming Hong Kong Falcon OSPL	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 Standard Chartered Bond Lloyds Bank Plc Bond Societe Generale Bond BNP Paribas Bond Standard Chartered Bond Lloyds Bank Plc Bond BNP Paribas Bond Societe Generale Bond Bonds Standard Chartered Bond Standard Chartered Bond	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 None None	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 Financial assets at amortized cost - current Financial assets at amortized cost - non-current	510 40,329 9,537 27 8,050 - - 8 1 - - 16,701 1,691 - - - - - - - - - -	$ 31,365 335,252 100,408 991,134 53,806 2,453 132,646 525,626 27,494 1,539 58,070 368,480 12,400 3,657 1,002 565 558 187,245 86,979 57,874 57,223 26,238 140,317	$ 1,126 12,038 3,605 35,588 1,932 88 4,763 18,873 987 55 2,085 13,231 445 131 36 20 20 6,723 3,123 2,078 2,055 942 5,038	- 18 2 - - - - - - - - - - - - - - - - - - - -	$ 31,365 335,252 100,408 991,134 53,806 2,453 132,646 525,626 27,494 1,539 58,070 368,480 12,400 3,657 1,002 565 558 187,245 86,979 57,874 57,223 26,238 140,317	$ 1,126 12,038 3,605 35,588 1,932 88 4,763 18,873 987 55 2,085 13,231 445 131 36 20 20 6,723 3,123 2,078 2,055 942 5,038	500 - - - - - - - - - - - - - - - - - - - - - -	$ 30,750 - - - - - - - - - - - - - - - - - - - - - -	$ 1,104 - - - - - - - - - - - - - - - - - - - - - -	(Note a) - - - - - - - - - - - - - - - - - - - - - -
													(Continued)

60 -

(Concluded)

Note a: They cannot be traded in pledged period.

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

Note c: Fair value are determined as follows: (a) listed stock closing price on September 30, 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$27.85 as of September 30, 2021.

61 -

TABLE 4

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

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

Company Name	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Note/Accounts (Payable) or Receivable	Note/Accounts (Payable) or Receivable	Note/Accounts (Payable) or Receivable	Note
			Purchase/ (Sale)	Amount		% to Total	Payment Terms	Unit Price	Payment Terms	Ending	Balance	% to Total
				NT$	US$ (Note 6)					NT$	US$ (Note 6)
U-Ming Marine Transport Corporation U-Ming Singapore U-Ming Hong Kong	Asia Cement U-Ming Singapore Asia Cement U-Ming Marine Transport Corporation U-Ming Marine Transport Corporation	The major shareholder Subsidiary The major shareholder of the parent company The parent company The parent company	Sales Purchase Sales Sales Sales	$ (378,029) 367,520 (205,942) (367,520) (186,238)	$ (13,574) 13,196 (7,395) (13,196) (6,687)	(30) 32 (2) (4) (34)	Upon completion of loading, within a month - Upon completion of loading, within 8 days - -	ad hoc basis - ad hoc basis - -	ad hoc basis - ad hoc basis - -	$ 33,464 (1,133) 2,378 59,917 15,097	$ 1,202 (41) 85 2,151 542	26 (4) - 13 98	- - - - -

Note: The foreign-currency amounts of payables and receivables were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$27.85 as of September 30, 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$28.067 for the nine months ended September 30, 2021.

62 -

TABLE 5

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 30, 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 Marine Transport Corporation U-Ming Singapore	Yue-Tung Winyield Eagle	Subsidiary An investee accounted for using the equity method by a subsidiary Subsidiary	Other receivable - related parties $114,274 (US$4,103) Long-term receivable - related parties $543,878 (US$19,529) Other receivable - related parties $1,867,091 (US$67,041)	- - -	$ - $ - $ -	- - -	$ - $ - $ -	$ - $ - $ -

Note: The above amounts were translated into New Taiwan dollars at the prevailing exchange rate of US$1=NT$27.85 as of September 30, 2021.

63 -

TABLE 6

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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 Yue-Li Yue-Tung	1 1 1 1 1 1	Freight revenue Other revenue Other receivables Prepaid expense Other receivables Other receivables	$ 71,388 18,119 18,298 28,150 73,500 114,274	$ 2,563 651 657 1,011 2,639 4,103	- - - - - -	1 - - - - -
1	U-Ming Singapore	U-Ming Marine Transport Corporation Yue-Li Yue-Tung Eagle	2 2 3 3 3	Freight revenue Receivables Temporary payments Temporary payments Other receivables	367,520 59,917 27,019 32,397 1,867,091	13,196 2,151 970 1,163 67,041	- - - - -	4 - - - 2
2	U-Ming Hong Kong	U-Ming Marine Transport Corporation U-Ming Singapore	2 2 3	Freight revenue Receivables Freight revenue	186,238 15,097 75,614	6,687 542 2,715	- - -	2 - 1
3	U-Ming Xiamen	U-Ming Singapore	3	Freight revenue	47,746	1,714	-	-

Note: 1. Parent to subsidiary.
Subsidiary to parent.
Between subsidiaries.
64 -

TABLE 7

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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	Original Investment Amount		As of September 30, 2021	As of September 30, 2021	As of September 30, 2021	Net Income (Loss) of the Investee	Net Income (Loss) of the Investee	Share of Profits (Loss)	Share of Profits (Loss)	Note
				September 30, 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 U-Ming Offshore 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 Two) Drive Catalyst SPC (SP Tranche Three) Opas Fund Segregated Portfolio Company Drive Catalyst SPC	Singapore Hong Kong Taipei 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 Cayman Islands	Transport Transport Investment Investment Transport Transport Bulk and retail sale of decorations and commodity Consultant Transport Transport Transport Transport Transport Investment Investment Investment Transport Transport Investment Investment Investment Investment Investment	$ 2,649,382 121,923 1,500,000 1,360,400 50,000 2,054,100 186,080 50,000 2 3 - - - 661,080 700,000 489,600 474,692 578,113 122,860 111,440 231,360 1,624 491	$ 95,130 4,378 53,860 48,847 1,795 73,756 6,682 1,795 - - - - - 23,737 25,135 17,580 17,045 20,758 4,411 4,001 8,307 58 18	$ 2,649,382 121,923 1,500,000 1,360,400 - 2,054,100 186,080 50,000 2 3 - - - 661,080 700,000 489,600 474,692 578,113 122,860 - 119,920 1,624 491	$ 95,130 4,378 53,860 48,847 - 73,756 6,682 1,795 - - - - - 23,737 25,135 17,580 17,045 20,758 4,411 - 4,306 58 18	150,146 27,000 150,000 136,040 5,000 205,410 31,364 5,134 - - - - - - 70,000 48,960 - 41,435 4 4 8 - -	100 100 68 74 100 40 25 40 17 17 50 25 100 100 32 26 100 49 25 25 25 33 33	$ 32,836,440 8,527,836 2,229,654 2,109,877 50,000 1,947,771 482,458 96,784 89,271 98 - 21,887 71,426 920,227 1,040,572 759,332 813,175 640,893 112,070 110,444 237,780 1,379 460	$ 1,179,046 306,206 80,059 75,759 1,795 69,938 17,323 3,475 3,205 4 - 786 2,565 33,042 37,363 27,265 29,198 23,012 4,024 3,966 8,538 50 17	$ 2,525,493 544,790 107,500 135,775 - 153,002 125,909 34,187 82,830 (6 ) 10,006 88,227 (13,981 ) 36,507 107,500 135,775 206,830 71,029 (83 ) (3,149) (1,658 ) 7 -	$ 90,682 19,562 3,860 4,875 - 5,494 4,521 1,228 2,974 - 359 3,168 (502) 1,311 3,860 4,875 7,427 2,550 (3) (113) (60) - -	$ 2,525,493 544,790 73,295 99,842 - 61,216 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 Not applicable	$ 90,682 19,562 2,632 3,585 - 2,198 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 Not applicable	A subsidiary 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 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$27.85 as of September 30, 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$28.067 for the nine months ended September 30, 2021.

65 -

TABLE 8

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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, 2021	Investment Flows	Investment Flows	Accumulated Outward Remittance for Investments from Taiwan as of September 30, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note b)	Carrying Amount as of September 30, 2021	Accumulated Repatriation of Investment Income as of September 30, 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)	$ (3,798) (US$ (136)) (3,643) (US$ (131))	100 49	$ (3,798) (US$ (136)) (1,785) (US$ (64))	$ 34,042 (US$ 1,222) 39,742 (US$ 1,427)	$ - -

Accumulated Outward		Investment Amounts		Upper Limit	on the Amount of
Remittance for Investments in Mainland China as of September 30, 2021		Authorized by the Investment Commission, MOEA		Investments Stipulated by the Investment Commission, MOEA
$75,263 (US$2,568)		$75,263 (US$2,568)		$14,623,914 (US$525,096)

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.

66 -

TABLE 9

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

67 -

AI assistant

U-MING — Interim / Quarterly Report 2021

52160_rns_2021-11-23_64d0559d-e969-4104-82da-ff4b2d1944d5.pdf

U-Ming Marine Transport Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2021 and 2020

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

b. Basis of consolidation

2) Taxation

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. TRANSLATION INTO U.S. DOLLARS

7. CASH AND CASH EQUIVALENTS

8. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

10. TRADE RECEIVABLES

September 30, 2021

New Taiwan dollars

September 30, 2020

New Taiwan dollars

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

15. BORROWINGS

a. Short-term loans

b. Short-term bills payable (Note 25)

c. Long-term borrowings

16. OTHER PAYABLES

17. RETIREMENT BENEFIT PLANS

18. EQUITY

a. Common share capital

b. Capital surplus

c. Retained earnings and dividend policy

U.S. dollars (Note 6)

19. REVENUE

a. Disaggregation of revenue

b. Contract balances

20. NET PROFIT

a. Other operating revenue

b. Finance costs

c. Depreciation and amortization

d. Employee benefits expense

e. Employees’ compensation and remuneration of directors

21. INCOME TAXES

b. Income tax assessments

U-MING Interim / Quarterly Report 2021