Yang Ming Marine Transport Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
Yang Ming Marine Transport Corporation

Opinion

We have audited the accompanying parent company only financial statements of Yang Ming Marine Transport Corporation (the “Company”), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matters of the parent company only financial statements of the Company for the year ended December 31, 2025 are as follows:

Audit of the Percentage-of-Completion

Since the recognition of the cargo revenue is material and complex, we deemed the percentage-of-completion method of revenue recognition as a key audit matter.

The recognition depends on the expected time frame for the completion of the voyage. The judgment of the percentage-of-completion estimation may lead to an incorrect calculation of revenue recognized or an inconsistency in revenue recognition.

The judgment of cargo revenue recognition included material accounting judgments and key sources of estimation uncertainty disclosed in Notes 5 and 23 to the accompanying parent company only financial statements.

We tested the accuracy of the timing of the revenue recognition. Through subsequent information on voyages, berthing reports, sailing schedules and reports of the estimation of the bill of lading revenue, we reviewed the basis of estimates and verified the validity of the voyage dates calculated by Company's management and of the revenue resulting from voyages.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

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

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

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

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025, and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Chin-Tsung Cheng and Chen-Hsiu Yang.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 13, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and parent company only financial statements shall prevail.

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4, 6 and 30)	$ 20,683,485	5	$ 38,882,267	9
Financial assets at fair value through profit or loss (FVTPL) - current (Notes 4 and 7)	18,683,932	4	2,733,862	1
Financial assets at amortized cost - current (Notes 4, 9, 29, 30 and 31)	2,555,322	1	23,552,208	5
Financial assets for hedging - current (Notes 4, 6, 29 and 30)	7,069,864	2	17,210,159	4
Contract assets, net (Notes 4, 23 and 30)	627,079	-	737,890	-
Trade receivables, net (Notes 4, 10 and 23)	852,594	-	623,283	-
Trade receivables from related parties (Notes 4, 10, 23 and 30)	304,523	-	407,961	-
Finance lease receivables, net (Notes 4, 11 and 30)	63,682	-	63,785	-
Other receivables from related parties (Notes 4 and 30)	5,048,230	1	4,998,324	1
Current tax assets (Notes 4 and 25)	2,508,933	1	844,425	-
Shipping fuel (Notes 4 and 12)	542,073	-	804,873	-
Prepayments (Note 30)	359,671	-	290,482	-
Prepayments to shipping agents	40,875	-	74,675	-
Other current assets	370,350	-	252,494	-
Total current assets	59,710,613	14	91,476,688	20
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss (FVTPL) - non-current (Notes 4 and 7)	289,774	-	281,817	-
Financial assets at fair value through other comprehensive income (FVTOCI) - non-current (Notes 4 and 8)	554,841	-	528,511	-
Financial assets at amortized cost - non-current (Notes 4, 9, 29, 30 and 31)	1,961,683	-	2,300,686	-
Investments accounted for using equity method (Notes 4 and 13)	186,763,417	43	199,123,113	43
Property, plant and equipment (Notes 4, 14, 30 and 32)	112,162,389	26	83,897,900	18
Right-of-use assets (Notes 4, 15 and 30)	58,949,638	13	67,306,233	15
Investment properties (Notes 4 and 16)	8,333,281	2	7,669,028	2
Other intangible assets (Note 4)	109,758	-	72,748	-
Deferred tax assets (Notes 4 and 25)	579,392	-	1,020,646	-
Prepayments for equipment (Notes 30 and 32)	7,111,372	2	9,067,119	2
Refundable deposits	264,091	-	228,908	-
Finance lease receivable - non-current (Notes 4, 11 and 30)	381,095	-	444,776	-
Other non-current assets	2,034	-	2,034	-
Total non-current assets	377,462,765	86	371,943,519	80
TOTAL	$ 437,173,378	100	$ 463,420,207	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities for hedging - current (Notes 4, 15 and 29)	$ 5,477,121	1	$ 5,637,381	1
Contract liabilities - current (Notes 4 and 23)	89,609	-	370,802	-
Trade payables (Note 18)	7,093,449	2	4,360,583	1
Trade payables to related parties (Notes 18 and 30)	2,890,882	1	3,203,326	1
Other payables (Note 19)	4,242,559	1	5,592,919	1
Other payables to related parties (Notes 19 and 30)	1,509,966	-	1,369,204	-
Current tax liabilities (Notes 4 and 25)	3,152,061	1	2,753,504	1
Provision - current (Notes 4 and 20)	465,011	-	181,274	-
Lease liabilities - current (Notes 4, 15 and 30)	2,362,515	1	2,293,579	1
Other advance account	52,552	-	77,285	-
Current portion of long-term liabilities (Notes 4, 17 and 30)	2,243,537	-	2,242,881	-
Other current liabilities	1,102,286	-	460,725	-
Total current liabilities	30,681,548	7	28,543,463	6
NON-CURRENT LIABILITIES
Financial liabilities for hedging - non-current (Notes 4, 15 and 29)	46,738,431	11	54,474,959	12
Bonds payable (Notes 4, 17 and 30)	1,395,098	-	3,637,659	1
Deferred tax liabilities (Notes 4 and 25)	21,898,827	5	22,836,842	5
Lease liabilities - non-current (Notes 4, 15 and 30)	9,147,739	2	11,759,819	3
Other advance account - non-current	52,974	-	78,324	-
Net defined benefit liabilities - non-current (Notes 4 and 21)	1,110,014	-	1,372,026	-
Other non-current liabilities	298,077	-	178,723	-
Total non-current liabilities	80,641,160	18	94,338,352	21
Total liabilities	111,322,708	25	122,881,815	27
EQUITY
Share capital - ordinary shares	34,921,043	8	34,921,043	7
Capital surplus	27,975,030	7	27,975,030	6
Retained earnings
Legal reserve	41,895,679	9	35,467,390	8
Special reserve	4,107,080	1	4,936,702	1
Unappropriated earnings	217,158,945	50	231,884,319	50
Total retained earnings	263,161,704	60	272,288,411	59
Other equity	(207,107)	-	5,353,908	1
Total equity	325,850,670	75	340,538,392	73
TOTAL	$ 437,173,378	100	$ 463,420,207	100

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

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4, 5, 15, 23 and 30)	$ 69,014,964	100	$ 66,803,175	100
OPERATING COSTS (Notes 4, 12, 24 and 30)	51,850,656	75	52,675,789	79
GROSS PROFIT	17,164,308	25	14,127,386	21
OPERATING EXPENSES (Notes 4, 9, 10, 23, 24, 29 and 30)
Selling and marketing expenses	2,782,023	4	3,262,042	5
General and administrative expenses	779,460	1	991,180	1
Expected credit loss (gain)	10,504	-	(115)	-
Total operating expenses	3,571,987	5	4,253,107	6
OTHER OPERATING INCOME AND EXPENSES (Notes 4 and 24)	142,736	-	260,835	-
PROFIT FROM OPERATIONS	13,735,057	20	10,135,114	15
NON-OPERATING INCOME AND EXPENSES (Notes 4, 24 and 30)
Interest income	2,360,712	4	4,354,569	7
Other income	119,696	-	121,995	-
Other gains and losses	1,881,243	3	2,279,367	3
Net gain on derecognition of financial assets at amortized cost	353	-	312	-
Finance costs	(3,477,842)	(5)	(2,095,263)	(3)
Share of profits or loss of subsidiaries and associates	6,415,980	9	63,824,417	96
Total non-operating income and expenses	7,300,142	11	68,485,397	103
PROFIT BEFORE INCOME TAX	21,035,199	31	78,620,511	118
INCOME TAX EXPENSE (Notes 4 and 25)	(3,938,262)	(6)	(14,441,440)	(22)
NET PROFIT FOR THE YEAR	17,096,937	25	64,179,071	96
			(Continued)

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
(Notes 4, 6, 15, 21, 22 and 25)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	$ (46,248)	-	$ 123,145	-
Unrealized gain on investments in equity instruments at FVTOCI	26,330	-	38,212	-
Share of the other comprehensive (loss) income of subsidiaries and associates accounted for using the equity method	(95,776)	-	145,798	1
Income tax related to items that will not be reclassified subsequently to profit or loss	9,250	-	(24,629)	-
	(106,444)	-	282,526	1
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	(8,318,879)	(12)	9,192,505	14
Gain (loss) on hedging instruments	1,944,866	2	(1,580,829)	(3)
Income tax related to items that may be reclassified subsequently to profit or loss	1,315,091	2	(1,423,613)	(2)
	(5,058,922)	(8)	6,188,063	9
Other comprehensive (loss) income for the year, net of income tax	(5,165,366)	(8)	6,470,589	10
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 11,931,571	17	$ 70,649,660	106
EARNINGS PER SHARE (Note 26)
Basic	$ 4.90		$ 18.38
Diluted	$ 4.89		$ 18.32

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Share Capital (Notes 4 and 22)		Capital Surplus (Notes 4 and 22)	Retained Earnings (Note 22)			Exchange Differences on Translation of the Financial Statements of Foreign Operations (Notes 4 and 22)	Other Equity Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income (Notes 4 and 22)	Gain (Loss) on Hedging Instruments (Notes 4 and 22)	Total Equity
	Shares (In Thousands)	Amount		Legal Reserve	Special Reserve	Unappropriated Earnings
BALANCE AT JANUARY 1, 2024	3,492,104	$ 34,921,043	$ 27,975,030	$ 34,991,933	$ 3,988,772	$ 176,009,020	$ (346,936)	$ (748,123)	$ 187,173	$ 276,977,912
Appropriation of 2023 earnings
Legal reserve	-	-	-	475,457	-	(475,457)	-	-	-	-
Special reserve	-	-	-	-	947,930	(947,930)	-	-	-	-
Cash dividends to shareholders (NT$2 per share)	-	-	-	-	-	(6,984,208)	-	-	-	(6,984,208)
Net profit for the year ended December 31, 2024	-	-	-	-	-	64,179,071	-	-	-	64,179,071
Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	-	-	99,685	7,431,732	182,841	(1,243,669)	6,470,589
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	64,278,756	7,431,732	182,841	(1,243,669)	70,649,660
Disposal of investments in equity instruments designated as at fair value through other comprehensive income (loss) by associates	-	-	-	-	-	4,138	-	(4,138)	-	-
Basis adjustment to loss on hedging instruments	-	-	-	-	-	-	-	-	(104,972)	(104,972)
BALANCE AT DECEMBER 31, 2024	3,492,104	34,921,043	27,975,030	35,467,390	4,936,702	231,884,319	7,084,796	(569,420)	(1,161,468)	340,538,392
Appropriation of 2024 earnings
Legal reserve	-	-	-	6,428,289	-	(6,428,289)	-	-	-	-
Reversal of special reserve	-	-	-	-	(829,622)	829,622	-	-	-	-
Cash dividends to shareholders (NT$7.5 per share)	-	-	-	-	-	(26,190,782)	-	-	-	(26,190,782)
Net profit for the year ended December 31, 2025	-	-	-	-	-	17,096,937	-	-	-	17,096,937
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	-	(29,967)	(6,700,517)	(76,477)	1,641,595	(5,165,366)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	17,066,970	(6,700,517)	(76,477)	1,641,595	11,931,571
Disposal of investments in equity instruments designated as at fair value through other comprehensive income (loss) by associates	-	-	-	-	-	(2,895)	-	2,895	-	-
Basis adjustment to loss on hedging instruments	-	-	-	-	-	-	-	-	(428,511)	(428,511)
BALANCE AT DECEMBER 31, 2025	3,492,104	$ 34,921,043	$ 27,975,030	$ 41,895,679	$ 4,107,080	$ 217,158,945	$ 384,279	$ (643,002)	$ 51,616	$ 325,850,670

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

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 21,035,199	$ 78,620,511
Adjustments for:
Depreciation expenses	16,140,874	16,710,557
Amortization expenses	47,729	73,725
Expected credit loss recognized (reversed)	10,504	(115)
Net gain on fair value change of financial assets/liabilities at FVTPL	(171,600)	(21,325)
Finance costs	3,477,842	2,095,263
Net gain on derecognition of financial assets at amortized cost	(353)	(312)
Interest income	(2,360,712)	(4,354,569)
Dividend income	(20,115)	(18,772)
Share of profit of subsidiaries and associates	(6,415,980)	(63,824,417)
Gain on disposal of property, plant and equipment	(109,232)	(182,589)
Impairment loss recognized on associates	1,556	3,203
Reversal of shipping fuel	(15,905)	(72,064)
Net loss (gain) on foreign currency exchange	400,463	(1,321,163)
Gain on change in fair value of investment properties	(448,808)	(85,467)
Loss on lease modification	533	345
Recognition of provisions	305,885	145,256
Changes in operating assets and liabilities
Financial assets mandatorily classified as at FVTPL	(15,786,427)	(2,543,731)
Contract assets	107,621	(364,057)
Trade receivables	(281,261)	509,579
Trade receivables from related parties	103,438	39,198
Other receivables from related parties	(49,905)	1,219,767
Shipping fuel	278,705	356,590
Prepayments	(63,502)	(23,623)
Prepayments to shipping agents	33,800	156,963
Other current assets	(290,121)	(2,459,991)
Contract liabilities	(281,193)	200,429
Trade payables	3,009,485	57,200
Trade payables to related parties	(312,444)	368,277
Other payables	(907,970)	1,380,840
Other payables to related parties	147,512	1,119,464
Other advances account	(50,083)	66,295
Other current liabilities	214,349	45,467
Net defined benefit liabilities	(308,260)	(101,520)
Cash generated from operations	17,441,624	27,795,214
Interest received	2,498,723	4,436,700
Dividend received	10,379,547	421,622
Interest paid	(3,482,185)	(2,118,438)
Income tax paid	(4,376,633)	(6,720,886)
Net cash generated from operating activities	22,461,076	23,814,212
		(Continued)

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at amortized cost	$ (68,283,869)	$ (55,666,022)
Proceeds from sale of financial assets at amortized cost	89,312,427	78,990,051
Proceeds from sale of financial assets for hedging	9,327,137	1,217,301
Payments for property, plant and equipment	(27,868,029)	(6,665,588)
Proceeds from disposal of property, plant and equipment	895,874	262,862
Increase in refundable deposits	(35,183)	(157,957)
Decrease in long-term receivables from related parties	-	14,246,257
Payments for intangible assets	(105,527)	(36,765)
Payments for investment properties	(215,445)	(2,154)
Decrease in financial lease receivables	63,255	62,581
Increase in other non-current assets	-	(166)
Increase in prepayments for equipment	(7,117,247)	(151,163)
Net cash (used in) generated from investing activities	(4,026,607)	32,099,237
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of bonds payable	(2,250,000)	(2,500,000)
Repayments of the principal portion of lease liabilities	(7,656,567)	(44,676,393)
Increase (decrease) in other non-current liabilities	119,354	(51,714)
Cash dividends paid	(26,190,782)	(6,984,208)
Net cash used in financing activities	(35,977,995)	(54,212,315)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	(655,256)	658,297
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(18,198,782)	2,359,431
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	38,882,267	36,522,836
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 20,683,485	$ 38,882,267

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

YANG MING MARINE TRANSPORT CORPORATION

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Yang Ming Marine Transport Corporation (the "Company" or YMTC), established in December 1972, was majority-owned by the Ministry of Transportation and Communications (MOTC) of the Republic of China (ROC) until February 15, 1996 when the MOTC began reducing its holdings in the Company following the Company's listing of its shares on the Taiwan Stock Exchange.

YMTC mainly engages in the shipping, repair, chartering, sale and purchase of ships, containers and chassis and operates as a shipping agency.

YMTC's shares have been listed on the Taiwan Stock Exchange since April 1992. YMTC issued global depositary receipts (GDRs), which have been listed on the London Stock Exchange (ticker symbol: YMTD) since November 1996. The GDRs listed on London Stock Exchange were delisted on December 5, 2019.

To simplify investment structure and integrate resources, YMTC plans to restructure the Company. In July 2021, the board of directors resolved to merge with Ching Ming Investment Corp. The base date for the merger was November 1, 2021. The Company would be the surviving company while Ching Ming Investment Corp would be dissolved in the merger.

The parent company only financial statements of the Company are presented in YMTC's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by YMTC's board of directors on March 12, 2026.

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 "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Amendments to IAS 21 "Lack of Exchangeability"

The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Company's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

As of the date the parent company only financial statements were authorized for issue, the Company has assessed that the application of above standards and interpretations will not have a material impact on the Company's financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Company shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as “other” only if it cannot find a more informative label.

Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

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

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments and investment properties which are measured at fair value, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

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When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these parent company only financial statements.

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the parent company only financial statements are authorized for issue; and
3) Liabilities for which the Company does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Foreign currencies

In preparing the Company's financial statements, transactions in currencies other than the Company's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise except for exchange differences on transactions entered into in order to hedge certain foreign currency risks.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

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For the purposes of presenting parent company only financial statements, the financial statements of the Company’s foreign operations (including subsidiaries and associates in other countries) that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollars, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

e. Shipping fuel

Shipping fuel is stated at the lower of cost or net realizable value. Any write-down is made item by item. Shipping fuel is recorded at weighted-average cost.

f. Investment in subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company’s share of equity of subsidiaries attributable to the Company.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company’s share of loss of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues recognizing its share of further loss, if any.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

Profit or loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Company.

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g. Investment in associates

An associate is an entity over which the Company has significant influence and which is not a subsidiary.

The Company uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company’s share of the equity of associates attributable to the Company.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized.

The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s parent company only financial statements only to the extent of interests in the associate that are not related to the Company.

h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

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i. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties include land held for a currently undetermined future use.

Freehold investment properties are measured initially at cost, including transaction costs, and are subsequently measured using the fair value model. Changes in the fair value of investment properties are included in profit or loss for the period in which they arise.

For a transfer of classification from investment properties to property, plant and equipment, the deemed cost of an item of property for subsequent accounting is its fair value at the commencement of development for owner-occupation.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

j. Intangible assets

1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

k. Impairment of property, plant and equipment, right-of-use assets and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

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Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are included in the initially recognized amount of the financial assets or financial liabilities.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI.

Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 29: Financial Instruments.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost, time deposits with original maturities of more than 3 months, repurchase agreements, corporate bonds, restricted bank deposits, other receivables and long-term receivables, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;

ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits and repurchase agreements with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets and contract assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), finance lease receivables, other receivables, as well as contract assets.

The Company always recognizes lifetime expected credit losses (ECLs) for trade receivables, finance lease receivables, other receivables and contract assets. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Company considers that when internal or external information shows that the debtor is unlikely to pay its creditors, it is indicated that a financial asset is in default (without taking into account any collateral held by the Company).

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

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c) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

3) Financial liabilities

a) Subsequent measurement

All the financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

4) Derivative financial instruments

The Company enters into a variety of derivative financial instruments to manage its exposure to oil price variation risks, mainly for oil swap option.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

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Derivatives embedded in hybrid contracts that contain financial asset hosts that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g. financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts, and the host contracts are not measured at FVTPL.

m. Hedge accounting

The Company designates certain hedging instruments, which include non-derivatives in respect of foreign currency risk, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

Cash flow hedges

The effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gains or losses relating to the ineffective portion are recognized immediately in profit or loss.

The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as reclassification adjustments in the line items relating to the hedged item in the same period in which the hedged item affects profit or loss. If a hedge of a forecasted transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the non-financial asset or non-financial liability.

The Company discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. The cumulative gain or loss on the hedging instrument that was previously recognized in other comprehensive income (from the period in which the hedge was effective) remains separately in equity until the forecasted transaction occurs. When a forecasted transaction is no longer expected to occur, the gains or losses accumulated in equity are recognized immediately in profit or loss.

n. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Carbon fee provision

In accordance with the related regulations of the EU-ETS, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year.

o. Revenue recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

For contracts entered into with the same customer (or related parties of the customer) at or near the same time, those contracts are accounted for as a single contract if the services promised in the contracts are a single performance obligation.

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1) Revenue from container shipping service

Revenue from contracts with customers comes from providing container shipping services. As the Company provides container shipping services, customers simultaneously receive and consume the benefits provided by the Company’s performance. The Company recognizes the cargo revenue and contract asset on the basis of the percentage-of-completion. The contract assets are reclassified to trade receivables when the voyage is completed.

2) Other operating revenue

Other service revenue is recognized on an accrual basis during the service is rendered or upon the completion of service.

p. Leasing

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

For a contract that contains a lease component and non-lease components, the Company allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

1) The Company as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

When the Company subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Company, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.

Under finance leases, the lease payments comprise fixed payments. The net investment in a lease is measured at (a) the present value of the sum of the lease payments receivable by a lessor and any unguaranteed residual value accrued to the lessor plus (b) initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated to the relevant accounting periods so as to reflect a constant, periodic rate of return on the Company’s net investment outstanding in respect of leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

Variable lease payments that do not depend on an index or a rate are recognized as income in the periods in which they are incurred.

2) The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

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Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the parent company only balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms. However, if leases transfer ownership of the underlying assets to the Company by the end of the lease terms or if the costs of right-of-use assets reflect that the Company will exercise a purchase option, the Company depreciates the right-of-use assets from the commencement dates to the end of the useful lives of the underlying assets.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate, residual value guarantees, the exercise price of a purchase option if the Company is reasonably certain to exercise that option, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, or a change in the assessment of an option to purchase an underlying asset, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Company accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the parent company only balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

q. Government grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants intend to compensate.

Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognized in profit or loss in the period in which they are received.

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r. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current and previous service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur or when the plan amendment or curtailment occurs. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

3) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plan except that remeasurement is recognized in profit or loss.

4) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognizes any related restructuring costs.

s. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

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Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. If investment properties measured using the fair value model are non-depreciable assets, or are held under a business model whose objective is not to consume substantially all of the economic benefits embodied in the assets over time, the carrying amounts of such assets are presumed to be recovered entirely through sale.

The Company has applied the exception from the recognition and disclosure of deferred tax assets and liabilities relating to Pillar Two income taxes. Accordingly, the Company neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, management is required to make judgments, estimates, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Company considers the possible impact of European Union environmental policies and regulations, the development of the Red Sea crisis, the military conflict between Russia and Ukraine, economic environment implications of inflation and US reciprocal tariffs on the cash flow projection, growth rates, discount rates, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

25 -

26 -

Key Sources of Estimation Uncertainty

Revenue recognition

Revenue from delivery service is recognized under the percentage-of-completion method. The Company evaluates the percentage-of-completion and estimates the revenue and related costs as of the financial reporting date.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 6	$ 8
Checking accounts and demand deposits	13,338,116	16,508,021
Cash equivalents (investments with original maturities of 3 months or less)
Time deposits	7,345,363	18,874,238
Repurchase agreements	-	3,500,000
	$ 20,683,485	$ 38,882,267

The market rate intervals of time deposits and repurchase agreements at the end of the year were as follows:

	December 31
	2025	2024
Time deposits	0.61%-4.20%	1.46%-5.13%
Repurchase agreements	-	1.84%-1.85%

Financial assets designated as hedging

The Company designated certain USD-denominated demand deposits and time deposits as hedging instruments to hedge future volatility of USD-denominated payments for ship purchases, and the accounting treatment is applicable to cash flow hedges. The information on the transactions is summarized as follows:

	Maturity Period	Account	Carrying Amount
December 31, 2025	2026/01/07-2026/04/08	Financial assets for hedging	$ 7,069,864
December 31, 2024	2025/01/03-2025/02/03	Financial assets for hedging	$ 17,210,159

Impact on comprehensive income (loss):

	Recognized in Other Comprehensive Income (Loss)
For the year ended December 31, 2025	$ (813,158)
For the year ended December 31, 2024	$ 1,157,691

For the years ended December 31, 2025 and 2024, the amount of hedging instruments reclassified to prepayments for equipment or property in construction were $(428,511) thousand and $(104,972) thousand, respectively.

7. FINANCIAL INSTRUMENTS AT FVTPL

	December 31
	2025	2024
Financial assets at FVTPL - current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic listed shares	$ 235,929	$ 166,571
Mutual funds	18,448,003	2,567,291
	$ 18,683,932	$ 2,733,862
Financial assets at FVTPL - non-current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic listed shares	$ 264,800	$ 256,000
Domestic limited partnership	24,974	25,817
	$ 289,774	$ 281,817

8. FINANCIAL ASSETS AT FVTOCI - NON-CURRENT

	December 31
	2025	2024
Domestic investments in equity instruments
Unlisted shares
Ordinary shares - Taipei Port Container Terminal Co., Ltd.	$ 536,664	$ 509,136
Ordinary shares - United Stevedoring Corp.	4,916	4,923
Ordinary shares - Pro-Ascentek Investment Corporation	13,261	14,452
	$ 554,841	$ 528,511

These investments in equity instruments 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 Company's strategy of holding these investments for long-term purposes.

Dividends of $2,556 thousand and $1,899 thousand were recognized during 2025 and 2024, respectively.

28 -

9. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Time deposits with original maturities of more than 3 months (a)	$ -	$ 15,858,646
Restricted bank balance (Note 31)	92,983	89,982
Repurchase agreements (b)	2,000,000	6,550,000
Corporate bonds (c)	2,424,655	3,355,157
Less: Allowance for impairment loss	(633)	(891)
	$ 4,517,005	$ 25,852,894
Current	$ 2,555,322	$ 23,552,208
Non-current	$ 1,961,683	$ 2,300,686

a. The range of interest rates for time deposits with original maturities of more than 3 months were approximately 1.45%-5.48% per annum as of December 31, 2024.

b. The range of interest rates for repurchase agreements were approximately 1.78% and 1.80%-1.86% per annum as of December 31, 2025 and 2024, respectively.

c. In December 2020, the Company bought a 5-year corporate bond issued by Kuang Ming Shipping Corp. at a par value of $600,000 thousand with a coupon rate and an effective interest rate of 1.80%, and the corporate bond was repaid upon maturity in December 2025. In 2025 and 2024, the Company bought 5-year to 7-year corporate bonds issued at a par value of US$22,000 thousand and 6-year corporate bonds issued at a par value of US$2,000 thousand, respectively. The coupon rate and the effective interest rate of the corporate bonds were approximately 0.70%-5.50%, 3.96%-5.58%; and 0.45%-5.50%, 3.96%-6.15% per annum as of December 31, 2025 and 2024, respectively.

d. Refer to Note 29 for information relating to credit risk management and impairment of investments in financial assets at amortized cost.

10. TRADE RECEIVABLES

	December 31
	2025	2024
Trade receivables
At amortized cost
Trade receivables - non-related parties	$ 862,851	$ 626,670
Trade receivables - related parties	304,523	407,961
Less: Allowance for impairment loss	(10,257)	(3,387)
	$ 1,157,117	$ 1,031,244

The average credit period of trade receivables from cargo business is 14 to 28 days.

The Company measures the loss allowance for trade receivables and contract assets at an amount equal to lifetime ECLs. The expected credit losses on trade receivables and contract assets 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 forecast direction of economic conditions at the reporting date. As the Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, and the Company's customers are scattered around the world and not related to each other. The management believes there is no significant concentration of credit risk for trade receivables. The provision for loss allowance based on past due status is not further distinguished according to the Company's different customer base. The Company recognizes contract assets by the completion ratio of transportation. According to historical experience, the completion of the transportation period is within 60 days. The recognition method of the Company to assess contract assets that have expected credit loss is the same as the trade receivables, and it is assessed within 60 days after the invoice date.

The Company writes off trade receivables and contract assets when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables and contract assets that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

For the trade receivables balances that were past due at the end of the reporting period, the Company did not recognize an allowance for impairment loss, because there was not a significant change in credit quality and the amounts were still considered recoverable. The Company acquired bank's guaranteed letter from agencies or received security deposit from clients; for the rest of the receivables, the Company did not hold any collateral or other credit enhancements for these balances.

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

December 31, 2025

	No Sign of Default by Client
	Less than 30 Days	Over 31 Days	Total
Expected credit loss rate	0.00%-0.87%	1.20%
Gross carrying amount	$ 1,142,487	$ 24,887	$ 1,167,374
Loss allowance (Lifetime ECLs)	(9,958)	(299)	(10,257)
Amortized cost	$ 1,132,529	$ 24,588	$ 1,157,117

December 31, 2024

	No Sign of Default by Client
	Less than 30 Days	Over 31 Days	Total
Expected credit loss rate	0.00%-0.33%	0.64%-5.15%
Gross carrying amount	$ 1,022,940	$ 11,691	$ 1,034,631
Loss allowance (Lifetime ECLs)	(3,312)	(75)	(3,387)
Amortized cost	$ 1,019,628	$ 11,616	$ 1,031,244

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

	2025	2024
Balance on January 1	$ 3,387	$ 5,222
Add: Net remeasurement of loss allowance	7,572	(1,435)
Less: Reclassified to allowance of overdue receivables	(702)	(400)
Balance on December 31	$ 10,257	$ 3,387

11. FINANCE LEASE RECEIVABLES

The composition of finance lease receivables was as follows:

	December 31
	2025	2024
Undiscounted lease payments
Year 1	$ 72,411	$ 74,116
Year 2	72,411	72,411
Year 3	72,411	72,411
Year 4	43,218	72,411
Year 5	43,218	43,218
Year 6 onwards	181,446	224,664
	485,115	559,231
Less: Unearned finance income	(40,338)	(50,670)
Net investment in leases presented as finance lease receivables	$ 444,777	$ 508,561
Current	$ 63,682	$ 63,785
Non-current	$ 381,095	$ 444,776

The Company entered into a finance lease arrangement for certain port equipment with a quarterly fixed lease payment of $11,042 thousand. In April 2025 and July 2024, due to unleash old equipment that needs to be retired, the Company agreed to reduce the rent to a fixed lease payment of $234 thousand and $426 thousand per quarter for the remaining lease period, respectively. Because the original lease agreement did not have a relevant rent adjustment mechanism, the abovementioned modification of the lease agreement reduced the adjustment of the finance lease receivable and recognized a loss on the lease modification of $529 thousand and $102 thousand, respectively.

The Company has been subleasing its container yard located in Keelung with monthly and quarterly fixed lease payments of $1,834 thousand and $1,796 thousand. Also, the Company has been subleasing its logistics center located in Kaohsiung with quarterly fixed lease payment of $10,804 thousand. As the Company subleases the container yard and the logistics center for all the remaining lease term of the main lease to the sublessees. The sublease contracts are classified as a finance lease.

The interest rates inherent in leases are fixed at the contract dates for the entire term of the lease. The range of interest rates inherent in the finance leases was approximately 0.40%-17.71% per annum as of December 31, 2025 and 2024.

The Company measures the loss allowance for finance lease receivables at an amount equal to lifetime ECLs. As of December 31, 2025, no finance lease receivable was past due. The Company has not recognized a loss allowance for finance lease receivables after taking into consideration the historical default experience and the future prospects of the industries in which the lessees operate, together with the value of collateral held over these finance lease receivables.

12. SHIPPING FUEL

	December 31
	2025	2024
Shipping fuel	$ 542,073	$ 804,873

The cost of shipping fuel recognized as operating cost for the years ended December 31, 2025 and 2024 were $4,368,298 thousand and $5,131,885 thousand, respectively.

The cost of shipping fuel recognized as operating cost for the years ended December 31, 2025 and 2024 included reversal of shipping fuel write-downs of $15,905 thousand and $72,064 thousand, respectively. Previous write-downs were reversed as a result of increased profit from marine operations.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in subsidiaries	$ 179,875,577	$ 192,045,037
Investments in associates	6,887,840	7,078,076
	$ 186,763,417	$ 199,123,113

a. Investments in subsidiaries

	December 31
	2025	2024
Unlisted shares
Yang Ming Line (B.V.I.) Holding Co., Ltd.	$ 16,435,443	$ 16,450,807
Yang Ming Line B.V.	2,937,649	2,669,310
Yang Ming Line (Singapore) Pte Ltd	-	72,714,911
Yang Ming Line Holding Co.	4,898,857	4,871,570
Kuang Ming Shipping Corp.	3,146,665	3,192,840
Yes Logistics Corp.	1,644,632	1,592,222
All Oceans Transportation Inc.	1,356,655	1,405,596
Jing Ming Transportation Co., Ltd.	146,825	141,553
Hong Ming Terminal & Stevedoring Corp.	251,297	259,905
Yang Ming (Singapore) Pte. Ltd.	149,057,554	88,746,323
	$ 179,875,577	$ 192,045,037

Name of Subsidiaries	Proportion of Ownership and Voting Rights
	December 31
	2025	2024
Yang Ming Line (B.V.I.) Holding Co., Ltd.	100.00%	100.00%
Yang Ming Line B.V. (Note 1)	100.00%	100.00%
Yang Ming Line (Singapore) Pte Ltd (Note 2)	-	100.00%
Yang Ming Line Holding Co.	100.00%	100.00%
Kuang Ming Shipping Corp.	98.88%	98.88%
Yes Logistics Corp.	96.36%	96.36%
All Oceans Transportation Inc.	100.00%	100.00%
Jing Ming Transportation Co., Ltd.	50.98%	50.98%
Hong Ming Terminal & Stevedoring Corp.	100.00%	100.00%
Yang Ming (Singapore) Pte. Ltd. (Note 2)	100.00%	100.00%

Note 1: The Company's board of directors resolved in November 2025 to process the cash capital increase of Yang Ming Line B.V. with a limit amount of NT$1,500,000 thousand. The capital injection was completed in March 2026.

Note 2: The Company's board of directors resolved in April 2025 to proceed a short-form merger between Yang Ming (Singapore) Pte. Ltd. and Yang Ming Line (Singapore) Pte Ltd, with Yang Ming (Singapore) Pte. Ltd. as the surviving company and Yang Ming Line (Singapore) Pte Ltd as the dissolved company. The base date of the merger was July 31, 2025.

Refer to Table B for the amounts of investments in subsidiaries which were pledged for the Company's endorsement and guarantee.

b. Investment in associates

	December 31
	2025	2024
Associates that are not individually material
Kao Ming Container Terminal Corp.	$ 3,449,577	$ 3,640,780
Taiwan Navigation Co., Ltd.	3,096,354	3,094,073
Yunn Wang Investment Co., Ltd.	206,625	202,136
Taiwan Foundation International Pte. Ltd.	127,539	131,639
Sino Trans PFS Cold Chain Logistics Co., Ltd.	7,745	9,448
	$ 6,887,840	$ 7,078,076

The Company held 6.67% of Sino Trans PFS Cold Chain Logistics Co., Ltd., but YES Logistics Corp., a subsidiary of the Company, also held 13.33% of Sino Trans PFS Cold Chain Logistics Co., Ltd., so it was listed as an associate.

All the associates are accounted for using the equity method.

Aggregate information of associates that are not individually material

	For the Year Ended December 31
	2025	2024
The Company’s share of:
Net profit for the year	$ 336,917	$ 429,264
Other comprehensive (loss) income	(103,320)	144,674
Total comprehensive income for the year	$ 233,597	$ 573,938

As of December 31, 2025, some of the equity investments that are not individually material and accounted for using the equity method showed signs of impairment. The management of the Company carried out the impairment tests individually for each equity investment by comparing its recoverable amounts with its carrying amounts. The recoverable amount of an investment in an associate is assessed individually for each associate. In determining the value in use of the investments, the Company estimated the present value of the estimated future cash flows expected to arise from the operations of the invested companies and from the ultimate disposal by using discount rates of 9.80%. Based on the assessments, the total recoverable amounts of the Company's equity investments of those associates of $7,745 thousand (on the basis of their value-in-use) were less than their carrying amounts as of December 31, 2025.

As of December 31, 2024, some of the equity investments that are not individually material and accounted for using the equity method showed signs of impairment. The management of the Company carried out the impairment tests individually for each equity investment by comparing its recoverable amounts with its carrying amounts. The recoverable amount of an investment in an associate is assessed individually for each associate. In determining the value in use of the investments, the Company estimated the present value of the estimated future cash flows expected to arise from the operations of the invested companies and from the ultimate disposal by using discount rates of 10.40%. Based on the assessments, the total recoverable amounts of the Company's equity investments of those associates of $9,448 thousand (on the basis of their value-in-use) were less than their carrying amounts as of December 31, 2024.

Hence, an impairment loss of $1,556 thousand and $3,203 thousand on those associates that are not individually material was recognized in profit or loss for the years ended December 31, 2025 and 2024, respectively.

14. PROPERTY, PLANT AND EQUIPMENT

	December 31
	2025	2024
Assets used by the Company	$ 111,663,659	$ 80,736,085
Assets leased under operating leases	498,730	3,161,815
	$ 112,162,389	$ 83,897,900

a. Assets used by the Company

	Land	Buildings	Container and Chassis	Ships	Leasehold Improvements	Miscellaneous Equipment	Construction in Progress	Total
Cost
Balance on January 1, 2025	$ 545,773	$ 857,065	$ 38,687,362	$ 94,681,011	$ 148,634	$ 1,523,284	$ 3,338,720	$ 139,781,849
Additions	6,669,980	4,197,674	5,574,201	1,812,866	-	22,934	9,347,985	27,425,640
Disposals	-	-	(1,789,107)	(812,156)	-	(90,505)	-	(2,691,766)
Transfers from assets leased under operating leases	-	-	-	2,804,458	-	-	-	2,804,458
Transfers to assets leased under operating leases	-	-	-	(195,323)	-	-	-	(195,323)
Reclassification	-	-	4,952	109,778	-	51,795	8,482,910	8,649,432
Balance on December 31, 2025	$ 7,215,753	$ 5,054,739	$ 42,277,408	$ 98,400,634	$ 148,634	$ 1,507,510	$ 21,169,615	$ 175,774,293
Accumulated depreciation and impairment
Balance on January 1, 2025	$ -	$ 381,082	$ 20,111,511	$ 37,328,043	$ 148,380	$ 1,076,748	$ -	$ 59,045,764
Disposals	-	-	(1,429,705)	(812,156)	-	(90,475)	-	(2,332,336)
Transfers from assets leased under operating leases	-	-	-	126,470	-	-	-	126,470
Transfers to assets leased under operating leases	-	-	-	(68,698)	-	-	-	(68,698)
Depreciation expenses	-	24,725	1,868,955	5,321,412	254	119,136	-	7,334,482
Reclassification	-	-	4,952	-	-	-	-	4,952
Balance on December 31, 2025	$ -	$ 405,807	$ 20,555,713	$ 41,895,071	$ 148,634	$ 1,105,409	$ -	$ 64,110,634
Carrying amounts on December 31, 2025	$ 7,215,753	$ 4,648,932	$ 21,721,695	$ 56,505,563	$ -	$ 402,101	$ 21,169,615	$ 111,663,659
Cost
Balance on January 1, 2024	$ 398,134	$ 808,725	$ 35,850,841	$ 48,438,954	$ 148,634	$ 1,489,554	$ -	$ 87,134,842
Additions	-	-	3,475,759	1,878,382	-	82,273	1,217,301	6,663,715
Disposals	-	-	(639,238)	(1,022,348)	-	(61,904)	-	(1,723,498)
Transfers to assets leased under operating leases	-	-	-	(3,361,266)	-	-	-	(3,361,266)
Transfers from investment properties	147,639	48,340	-	-	-	-	-	195,979
Reclassification (Note 15-c)	-	-	-	48,747,289	-	3,361	2,121,419	50,872,069
Balance on December 31, 2024	$ 545,773	$ 857,065	$ 38,687,362	$ 94,681,011	$ 148,634	$ 1,523,284	$ 3,338,720	$ 139,781,849
Accumulated depreciation and impairment
Balance on January 1, 2024	$ -	$ 366,312	$ 18,768,790	$ 20,012,105	$ 147,592	$ 1,035,192	$ -	$ 40,329,991
Disposals	-	-	(558,975)	(1,022,348)	-	(61,894)	-	(1,643,217)
Transfers to assets leased under operating leases	-	-	-	(556,808)	-	-	-	(556,808)
Depreciation expenses	-	14,770	1,901,696	3,257,493	788	103,450	-	5,278,197
Reclassification (Note 15-c)	-	-	-	15,637,601	-	-	-	15,637,601
Balance on December 31, 2024	$ -	$ 381,082	$ 20,111,511	$ 37,328,043	$ 148,380	$ 1,076,748	$ -	$ 59,045,764
Carrying amounts on December 31, 2024	$ 545,773	$ 475,983	$ 18,575,851	$ 57,352,968	$ 254	$ 446,536	$ 3,338,720	$ 80,736,085

The above items of property, plant and equipment used by the Company are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings	50-56 years
Container and chassis	6-10 years
Ships	20-25 years
Dry dock	2.5-5 years
Leasehold improvements	2-10 years
Miscellaneous equipment	3-18 years

The dry dock is a significant component of ships.

b. Assets leased under operating leases

	Ships	Miscellaneous Equipment	Total
Cost
Balance on January 1, 2025	$ 3,361,266	$ 477,947	$ 3,839,213
Transfers from assets used by the Company	195,323	-	195,323
Transfers to assets used by the Company	(2,804,458)	-	(2,804,458)
Balance on December 31, 2025	$ 752,131	$ 477,947	$ 1,230,078
			(Continued)

35 -

Accumulated depreciation	Ships	Miscellaneous Equipment	Total
Balance on January 1, 2025	$ 631,525	$ 45,873	$ 677,398
Transfers from assets used by the Company	68,698	-	68,698
Transfers to assets used by the Company	(126,470)	-	(126,470)
Depreciation expenses	81,876	29,846	111,722
Balance on December 31, 2025	$ 655,629	$ 75,719	$ 731,348
Carrying amounts on December 31, 2025	$ 96,502	$ 402,228	$ 498,730
Cost
Balance on January 1, 2024	$ -	$ 477,947	$ 477,947
Transfers from assets used by the Company	3,361,266	-	3,361,266
Balance on December 31, 2024	$ 3,361,266	$ 477,947	$ 3,839,213
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 15,945	$ 15,945
Transfers from assets used by the Company	556,808	-	556,808
Depreciation expenses	74,717	29,928	104,645
Balance on December 31, 2024	$ 631,525	$ 45,873	$ 677,398
Carrying amounts on December 31, 2024	$ 2,729,741	$ 432,074	$ 3,161,815

The maturity analysis of lease payments receivable under operating lease payments was as follows:

	December 31
	2025	2024
Year 1	$ 98,313	$ 138,163
Year 2 onwards	-	-
	$ 98,313	$ 138,163

At the end of the lease terms of ships under operating leases, the Company assessed the demand of voyage line deployment to determine whether they should be reclassified to freehold or should be adjusted based on the market rent to continue leasing to reduce the risk of the residual assets of the lease assets. At the end of the lease terms of equipment under operating leases, the Company adjusts the rent by market rent and continues leasing to reduce the risk of the residual assets of the lease.

The above items of property, plant and equipment leased under operating leases are depreciated on a straight-line basis over their estimated useful lives as follows:

Ships	25 years
Dry dock	2.5 years
Miscellaneous equipment	16 years

The dry dock is a significant component of ships.

15. LEASE ARRANGEMENTS

a. Right-of-use assets

	Land	Buildings	Container and Chassis	Ships	Miscellaneous Equipment	Total
Cost
Balance on January 1, 2025	$ 59,553	$ 321,908	$ 6,236,455	$ 106,496,113	$ 38,973	$ 113,153,002
Additions	21,079	8,277	-	309,033	-	338,389
Disposals	(20,944)	(7,050)	(117,009)	-	(26,371)	(171,374)
Reclassification	-	-	(4,952)	-	-	(4,952)
Balance on December 31, 2025	$ 59,688	$ 323,135	$ 6,114,494	$ 106,805,146	$ 12,602	$ 113,315,065
Accumulated depreciation
Balance on January 1, 2025	$ 42,419	$ 190,490	$ 2,644,581	$ 42,939,283	$ 29,996	$ 45,846,769
Additions	9,136	35,345	867,519	7,775,336	7,334	8,694,670
Disposals	(20,944)	(6,736)	(117,009)	-	(26,371)	(171,060)
Reclassification	-	-	(4,952)	-	-	(4,952)
Balance on December 31, 2025	$ 30,611	$ 219,099	$ 3,390,139	$ 50,714,619	$ 10,959	$ 54,365,427
Carrying amounts on December 31, 2025	$ 29,077	$ 104,036	$ 2,724,355	$ 56,090,527	$ 1,643	$ 58,949,638
Cost
Balance on January 1, 2024	$ 58,634	$ 318,281	$ 6,236,542	$ 114,427,742	$ 38,973	$ 121,080,172
Additions	919	9,603	-	41,259,450	-	41,269,972
Disposals	-	(5,976)	(87)	(641,507)	-	(647,570)
Reclassification	-	-	-	(48,549,572)	-	(48,549,572)
Balance on December 31, 2024	$ 59,553	$ 321,908	$ 6,236,455	$ 106,496,113	$ 38,973	$ 113,153,002
Accumulated depreciation
Balance on January 1, 2024	$ 33,246	$ 160,998	$ 1,753,859	$ 48,672,974	$ 21,784	$ 50,642,861
Additions	9,173	35,389	890,809	10,384,132	8,212	11,327,715
Disposals	-	(5,897)	(87)	(480,222)	-	(486,206)
Reclassification	-	-	-	(15,637,601)	-	(15,637,601)
Balance on December 31, 2024	$ 42,419	$ 190,490	$ 2,644,581	$ 42,939,283	$ 29,996	$ 45,846,769
Carrying amounts on December 31, 2024	$ 17,134	$ 131,418	$ 3,591,874	$ 63,556,830	$ 8,977	$ 67,306,233

For the Year Ended December 31

2025	2024

Income from the sublease of right-of-use assets (presented in operating revenue)

$ 19,166,006 $ 20,914,442

b. Lease liabilities

December 31
2025	2024
Land	$ 29,279	$ 17,503
Buildings	226,778	281,160
Container and chassis	3,132,040	4,280,453
Ships	60,335,975	69,576,609
Miscellaneous equipment	1,734	10,013
	$ 63,725,806	$ 74,165,738
		(Continued)

	December 31
	2025	2024
Carrying amount
Current	$ 2,362,515	$ 2,293,579
Non-current	$ 9,147,739	$ 11,759,819
Lease liabilities designated as hedging (presented included in financial liabilities for hedging)
Current	$ 5,477,121	$ 5,637,381
Non-current	$ 46,738,431	$ 54,474,959
		(Concluded)

Financial liabilities designated as hedging

The Company designated certain USD-denominated lease liabilities as hedging instruments to hedge future volatility of USD-denominated operating revenue, and the accounting treatment is applied to cash flow hedges. The information on the contracts is summarized as follows:

	Maturity Period	Account	Carrying Amount
December 31, 2025	2028/05/30-2035/10/16	Financial liabilities for hedging	$ 52,215,552
December 31, 2024	2028/05/30-2035/10/16	Financial liabilities for hedging	$ 60,112,340

Impact on comprehensive income (loss):

	Recognized in Other Comprehensive Income (Loss)	Amount Reclassified to Profit or Loss
For the year ended December 31, 2025	$ 2,512,948	$ 245,076
For the year ended December 31, 2024	$ (3,047,087)	$ 308,567

As of December 31, 2025, the lease term and the range of discount rate for lease liabilities (including USD-denominated lease contracts designated as hedge instruments) were as follows:

	Lease Term	For the Year Ended December 31, 2025
Land	2020/01/01-2030/09/30	1.23%-2.54%
Buildings	2000/08/22-2036/09/30	1.54%-2.54%
Container and chassis	2021/10/15-2033/06/15	0.88%-2.16%
Ships	2013/11/25-2035/10/16	1.51%-6.81%
Miscellaneous equipment	2021/07/01-2026/07/31	0.84%-1.32%

As of December 31, 2024, the lease term and the range of discount rate for lease liabilities (including USD-denominated lease contracts designated as hedge instruments) were as follows:

	Lease Term	For the Year Ended December 31, 2024
Land	2020/01/01-2027/12/31	1.12%-1.49%
Buildings	2000/08/22-2036/09/30	0.89%-2.16%
Container and chassis	2019/03/01-2033/06/15	0.66%-3.00%
Ships	2013/11/25-2035/10/16	1.51%-7.32%
Miscellaneous equipment	2020/11/01-2026/07/31	0.84%-1.32%

c. Material lease-in activities and terms

Many of the ship leases across the Company contain extension options, some of them also contain purchase options. These terms are used to maximize operational flexibility in terms of managing contracts. When the rents are lower than the market price of lease market, the Company will extend the lease term; when the purchase option prices are better than the market price, the Company will consider if the purchase options are exercised or not. These terms are not reflected in measuring lease liabilities in many cases because the options are not reasonably certain to be exercised. The table below summarizes potential future rental payments relating to periods following the exercise dates of extension and purchase options.

Containership Department	Lease Liabilities Recognized (Discounted)	Potential Future Lease Payments and Purchase Option Not Included in Lease Liabilities (Discounted)	Historical Rate of Exercise Extension and Purchase Options
December 31, 2025
Ships	$ 13,173,988	$ 8,635,691	42.45%
December 31, 2024
Ships	$ 16,035,135	$ 8,801,956	42.79%

The Company's board of directors resolved in November 2023 to buy back 2 chartered-in ships with extension and purchase options to replace current lease contracts. The ship purchase contracts had been signed in November 2023 with a total price of US$199,000 thousand, which had been fully delivered and settled in December 2023 and January 2024, respectively, and the ships had been transferred to property, plant and equipment.

The Company’s board of directors resolved in May 2024 to buy back 3 chartered-in ships with extension options to replace current lease contracts. The ship purchase contracts had been signed in May 2024 with a total price of US$287,000 thousand, which had been fully delivered and settled in May and June 2024, respectively, and the ships had been transferred to property, plant and equipment. The Company’s board of directors resolved in August 2024 to buy back 2 chartered-in ships with extension options again to replace current lease contracts. The ship purchase contracts had been signed in September 2024 with a total price of US$183,000 thousand, which had been fully delivered and settled in November 2024, and the ships had been transferred to property, plant and equipment.

The Company’s board of directors resolved in October 2024 to declare the two-year extension option of 10 chartered-in ships. In addition, the Company negotiated with shipowners to renew the right-of-use of 15 ships charter for a period of six years. The renewal chartered contracts had been signed in April 2025.

The Company’s board of directors resolved in November 2024 to terminate the sale and leaseback transaction with its subsidiary, All Oceans Transportation Inc. and to buy back 25 chartered-in ships with extension options to replace current lease contracts. The ship purchase contracts had been signed in November 2024 with a total price of US$500,141 thousand, which had been fully delivered and settled in November 2024, and the ships had been transferred to property, plant and equipment.

For the purpose of managing the storage, reforming, processing, transfer and distribution of goods, YMTC collaborated with the Port of Kaohsiung, Taiwan International Ports Corporation, Ltd. on the construction and operation of the First and Second Logistics Centers of the Kaohsiung Third Container Center. YMTC is entitled to the use of the First and Second Logistics Centers for 30 years and 28 years and 9 months, respectively, based on the initial investment made by YMTC. The Centers are amortized over the period in use. Furthermore, in accordance with the requirements, YMTC should pay land-use fees and administration fees for every month of the lease term (based on the actual volume of cargo stevedored). Administration fees depend on the lowest guaranteed volumes for each respective logistics center, which are 1 million and 0.88 million tons. If YMTC is unable to reach the lowest guaranteed volumes, it should calculate the payment for the administration fees based on the volumes of 1 million and 0.88 million tons, respectively, and the administration fees will be adjusted under the annual Wholesale Price Index in Taiwan.

d. Subleases

In addition to the sublease transactions described in Note 11, the other sublease transactions are set out below.

Sublease of right-of-use assets

The Company subleases some of its right-of-use assets for property, plant and equipment under operating leases with lease terms of 1 year and adjusts the rent by market rent.

e. Other lease information

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 1,799,888	$ 1,191,124
Expenses relating to low-value asset leases	$ 2,577,196	$ 2,741,965
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ 443,684	$ 446,219
Expenses relating to service cost payments not included in the measurement of lease liabilities	$ 2,684,397	$ 5,490,374
Total cash outflow for leases	$ (18,616,132)	$ (56,296,059)

The Company has elected to apply the recognition exemption of short-term leases and low-value asset leases and thus, did not recognize right-of-use assets and lease liabilities for these leases.

The amounts of lease commitments for short-term leases and low-value asset lease for which the recognition exemption is applied were $4,997,638 thousand and $5,585,912 thousand as of December 31, 2025 and 2024, respectively.

The amounts of lease commitments for future service cost which was recognized as non-lease components of contracts were $18,409,965 thousand and $21,838,167 thousand as of December 31, 2025 and 2024, respectively.

16. INVESTMENT PROPERTIES

	Completed Investment Property
Balance on January 1, 2024	$ 7,777,386
Additions	2,154
Transfers to property, plant and equipment	(195,979)
Gain on change in fair value of investment properties	85,467
Balance on December 31, 2024	7,669,028
Additions	215,445
Gain on change in fair value of investment properties	448,808
Balance on December 31, 2025	$ 8,333,281

The investment properties are leased out for 1 to 10 years. All lease contracts contain market review clauses in the event that the lessees exercise their options to extend. The lessees do not have a bargain purchase option to acquire the investment properties at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating leases of investment properties at December 31, 2025 and 2024, was as follows:

	December 31
	2025	2024
Year 1	$ 82,376	$ 80,355
Year 2	40,173	57,084
Year 3	22,876	16,607
Year 4	15,732	7,343
Year 5	5,987	3,648
Year 6 onwards	-	457
	$ 167,144	$ 165,494

To reduce the residual asset risk related to investment properties at the end of the relevant lease, the lease contract includes lessee's use limitation, guarantee deposit, punishment of breaching contracts, and responsibilities of maintenance, and the Company follows its general risk management strategy.

The fair values of investment properties measured on a recurring basis were as follows:

	December 31
	2025	2024
Independent valuation	$ 8,333,281	$ 7,669,028

As of December 31, 2025, the fair value was based on the valuations carried out on March 3, 2026, by independent qualified professional valuers, Mr. Zhi-Hau Wu, and Mr. Xin-Jie Chang, certified real estate appraisers in the ROC and real estate appraisal firm from CCIS Real Estate Joint Appraisers Firm.

As of December 31, 2024, the fair value was based on the valuations carried out on March 3, 2025, by independent qualified professional valuers, Mr. Hong-Kai Zhang, Mr. Yi-Zhi Zhang, Mr. Shi-Yu Yeh and Mr. Cheng-Yeh Wu, certified real estate appraisers in the ROC and the real estate appraisal firm from Savills (Taiwan) Limited.

The movements in the fair value of investment properties within Level 3 of the hierarchy were as follows:

	Keelung	Taipei	Kaohsiung	Total
Balance on January 1, 2024	$ 280,639	$ 6,785,979	$ 710,768	$ 7,777,386
Recognized in profit or loss (gain (loss) from the change in fair value of investment properties)	(4,652)	61,282	28,837	85,467
Additions	-	2,154	-	2,154
Transfers to property, plant and equipment	-	(195,979)	-	(195,979)
Balance on December 31, 2024	275,987	6,653,436	739,605	7,669,028
Recognized in profit or loss (gain from the change in fair value of investment properties)	13,465	363,307	72,036	448,808
Additions	10,130	205,315	-	215,445
Balance on December 31, 2025	$ 299,582	$ 7,222,058	$ 811,641	$ 8,333,281

The fair value of investment properties, except for undeveloped land, is measured using the income approach. The significant assumptions used were stated below. An increase in estimated future net cash inflows or a decrease in discount rates would result in an increase in the fair value.

	December 31
	2025	2024
Expected future cash inflows	$ 8,575,857	$ 8,060,039
Expected future cash outflows	(466,991)	(425,635)
Expected future cash inflows, net	$ 8,108,866	$ 7,634,404
Discount rates	2.470%-4.895%	3.345%-3.845%

The market rentals in the area where the investment property is located were between $0.4-$3.7 thousand and $0.5-$3.0 thousand per ping (35.59 square feet) in 2025 and 2024, respectively. The market rentals for comparable properties were between $0.5-$4.4 thousand and $0.5-$3.0 thousand per ping (35.59 square feet) in 2025 and 2024, respectively.

The expected future cash inflows generated by investment property included rental income, interest income on rental deposits and disposal value. The rental income was extrapolated using the Company's current rental rate, taking into account the annual rental growth rate; the income analysis covers a 2-year to 10-year period, the interest income on rental deposits was extrapolated using the average deposit interest rate of the top five banks announced by the Central Bank of the Republic of China for a year; the disposal value was determined using the direct capitalization method under the income approach. The expected future cash outflows incurred by investment property included expenditure such as land value taxes, house taxes, insurance premium, and maintenance costs. The expenditure was extrapolated on the basis of the current level of expenditure, taking into account the future adjustment to the government-announced land value, the tax rate promulgated under the House Tax Act.

The discount rate was determined using the interest rate for 2-year time deposits as posted by Chunghwa Post Co., Ltd., and any asset-specific risk premiums of 0.10%-2.43% and 0.875%-1.50% in 2025 and 2024, respectively.

The fair value of undeveloped land located in area Keelung, Taipei, and Kaohsiung was measured by land development analysis. The increase in estimated total sale price, the increase in rate of return, or the decrease in overall capital interest rate would result in increase in the fair value. The significant assumptions used were as follows:

	December 31
	2025	2024
Estimated total sales price	$ 6,491,941	$ 5,798,568
Rate of return	13%-24%	13%-20%
Overall capital interest rate	1.75%-5.11%	1.99%-8.42%

The rate of returns was determined by reference to the annual profit rate and construction period of the similar product constructed by competitors. Overall capitalization rate referred to current average benchmark interest rate and deposit interest rate of the top five banks, and to the proportion of equity funds and borrowed funds. The cost of the equity funds and borrowed funds is determined by the deposit and benchmark interest rate, respectively.

The total sale price is estimated on the basis of the most effective use of land or property available for sale after development is completed, taking into account the related regulations, domestic macroeconomic prospects, local land use, and market rates.

All of the Company's investment property was held under freehold interests.

17. BONDS PAYABLE

	December 31
	2025	2024
Secured domestic bonds	$ 3,638,635	$ 5,880,540
Less: Current portion	2,243,537	2,242,881
	$ 1,395,098	$ 3,637,659

43 -

Secured domestic bonds

YMTC issued five-year to seven-year secured domestic bonds with an aggregate par value of $5,900,000 thousand on April 28, 2021 (the April 2021 Bonds).

The bond features and terms are as follows:

Bonds issued in April 2021:

Type A - aggregate par value: $1,000,000 thousand; repayments: 50% - April 28, 2025 and 50% - April 28, 2026, an annual simple interest rate of 0.45%.

Type B - aggregate par value: $1,000,000 thousand; repayments: 50% - April 28, 2025 and 50% - April 28, 2026, an annual simple interest rate of 0.45%.

Type C - aggregate par value: $500,000 thousand; repayments: 50% - April 28, 2025 and 50% - April 28, 2026, an annual simple interest rate of 0.45%.

Type D - aggregate par value: $500,000 thousand; repayments: 50% - April 28, 2025 and 50% - April 28, 2026, an annual simple interest rate of 0.45%.

Type E - aggregate par value: $500,000 thousand; repayments: 50% - April 28, 2025 and 50% - April 28, 2026, an annual simple interest rate of 0.45%.

Type F - aggregate par value: $500,000 thousand; repayments: 50% - April 28, 2025 and 50% - April 28, 2026, an annual simple interest rate of 0.45%.

Type G - aggregate par value: $500,000 thousand; repayments: 50% - April 28, 2025 and 50% - April 28, 2026, an annual simple interest rate of 0.45%.

Type H - aggregate par value: $400,000 thousand; repayments: 50% - April 28, 2027 and 50% - April 28, 2028, an annual simple interest rate of 0.49%.

Type I - aggregate par value: $1,000,000 thousand; repayments: 50% - April 28, 2027 and 50% - April 28, 2028, an annual simple interest rate of 0.49%.

The bonds are guaranteed by banks, of which $4,400,000 thousand are guaranteed by government-related banks.

18. TRADE PAYABLES

	December 31
	2025	2024
Trade payables - operating
Trade payables - non-related parties	$ 7,093,449	$ 4,360,583
Trade payables - related parties	2,890,882	3,203,326
	$ 9,984,331	$ 7,563,909
Payables for cost of voyage in sailing	$ 5,760,138	$ 5,222,388
Payables for fuel	376,586	568,621
Payables for space hire	3,847,607	1,772,900
	$ 9,984,331	$ 7,563,909

44 -

19. OTHER PAYABLES

	December 31
	2025	2024
Other payables - non-related parties	$ 4,242,559	$ 5,592,919
Other payables - related parties	1,509,966	1,369,204
	$ 5,752,525	$ 6,962,123
Payables for container lease	$ 589,193	$ 682,849
Payables for salary and bonus	2,284,570	3,553,519
Payables for interest expenses	11,549	18,299
Payables for equipment M&R expenses	136,467	185,445
Payables for annual leave	120,344	110,711
Payables for vessel charter hire	163,367	98,177
Payables for equipment	306,921	749,310
Others	2,140,114	1,563,813
	$ 5,752,525	$ 6,962,123

20. PROVISIONS

	December 31
	2025	2024
Carbon fee (a)	$ 98,297	$ 21,444
Others (b)	366,714	159,830
	$ 465,011	$ 181,274

a. Carbon fee

As the shipping industry was included in the European Union Emission Trading Scheme (EU-ETS) starting from January 1, 2024, a provision of carbon fee was set up based on fuel consumption of related ships and carbon conversion factors.

b. Others

Other provisions have been evaluated conservatively; under relevant regulations, possible violation decisions were based on the advice of lawyers.

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

YMTC’s pension plans under the Labor Pension Act (LPA) for onshore employees and shipping crews are defined contribution schemes. Starting on July 1, 2005, the Company makes monthly contributions to the employees’ individual pension accounts in the Bureau of Labor Insurance at 6% of employees’ salaries every month.

For domestic crews providing service in foreign ships, pension plan is based on hiring contracts, the Company makes monthly contributions to the employees' account together with salaries.

b. Defined benefit plans

YMTC has adopted three pension plans since it was privatized on February 15, 1996. Before YMTC's privatization, qualified employees received pension payments for service years before the start of the privatization. The service years of the employees who received pre-privatization pension payments and continued to work in YMTC after privatization will be excluded from the calculation of pension payments after privatization. These plans are as follows:

The pension plan under the Labor Standards Act for onshore employees is a defined benefit plan. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company contributed amounts equal to 3% of salaries every month. The pension fund is administered by the pension fund monitoring committee and deposited in the committee's name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is insufficient to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the Bureau); the Company has no right to influence the investment policy and strategy.

Pension plan under the Maritime Labor Law for shipping crews is a defined benefit plan. Before the adoption of the ROC Maritime Labor Law, benefits were based on the amounts stated in the crew's hiring contracts. Under the Law, benefits are based on service years and average basic salary of the six months before retirement.

Pension plan for retired employees of China Merchants Steamship Navigation Company (CMSNC) provides benefits based on service years and level of monthly basic salary at the time of retirement.

Because of spin-off, the service years of the employees transferred to other subsidiaries are continued from the service years in YMTC. Benefits are based on the proportion of service years between YMTC and other subsidiaries, and are paid by individual pension accounts.

The Company and its subsidiaries, All Oceans Transportation Inc., Yang Ming (UK) Ltd.'s and Yang Ming (Singapore) Pte. Ltd. recognize pension expenses for each entity based on the actuarially determined consolidated pension cost and the agreed allocation ratio.

The amounts included in the balance sheets in respect of the Company's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 2,681,046	$ 2,707,854
Fair value of plan assets	(1,571,032)	(1,335,828)
Net defined benefit liabilities	$ 1,110,014	$ 1,372,026

Movements in net defined benefit liabilities (assets) were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2024	$ 2,848,797	$ (1,252,106)	$ 1,596,691
Current service cost	50,871	-	50,871
Net interest expense (income)	38,902	(17,347)	21,555
Recognized in profit or loss	89,773	(17,347)	72,426
Remeasurement
Return on plan assets	-	(113,724)	(113,724)
Actuarial gain - changes in financial assumptions	(73,738)	-	(73,738)
Actuarial loss - experience adjustments	64,317	-	64,317
Recognized in other comprehensive income	(9,421)	(113,724)	(123,145)
Contributions from the employer	-	(73,427)	(73,427)
Benefits paid	(221,295)	120,776	(100,519)
Balance on December 31, 2024	2,707,854	(1,335,828)	1,372,026
Current service cost	44,271	-	44,271
Net interest expense (income)	43,984	(23,032)	20,952
Recognized in profit or loss	88,255	(23,032)	65,223
Remeasurement
Return on plan assets	-	(94,825)	(94,825)
Actuarial loss - changes in financial assumptions	71,102	-	71,102
Actuarial loss - experience adjustments	69,971	-	69,971
Recognized in other comprehensive loss (income)	141,073	(94,825)	46,248
Contributions from the employer	-	(243,507)	(243,507)
Benefits paid	(256,136)	126,160	(129,976)
Balance on December 31, 2025	$ 2,681,046	$ (1,571,032)	$ 1,110,014

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

	For the Year Ended December 31
	2025	2024
Current service cost	$ 44,271	$ 50,871
Net interest expense	20,952	21,555
Less: Other receivables - related	(13,029)	(14,735)
	$ 52,194	$ 57,691
An analysis by function
Operating costs	$ 24,303	$ 22,947
Selling and marketing expenses	21,519	26,924
General and administrative expenses	6,372	7,820
	$ 52,194	$ 57,691

Through the defined benefit plans under the Labor Standards Act, the Company is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations are as follows:

	December 31
	2025	2024
Discount rates	1.40%	1.70%
Expected rates of salary increase	2.75%	2.75%

If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
Discount rates
0.50% increase	$ (116,489)	$ (115,947)
0.50% decrease	$ 124,588	$ 124,741
Expected rates of salary increase
0.50% increase	$ 124,159	$ 122,842
0.50% decrease	$ (116,303)	$ (115,378)

The above sensitivity analysis may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that changes in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plans for the next year	$ 18,522	$ 243,993
Average duration of the defined benefit obligation	8-11.7 years	7.9-11.2 years

c. In accordance with the relevant employee separation policies, the Company recognized severance payments and termination benefits of $17,915 thousand and $18,347 thousand for the years ended December 31, 2025 and 2024, respectively.

48 -

22. EQUITY

a. Share capital

	December 31
	2025	2024
Numbers of shares authorized (in thousands)	4,500,000	4,500,000
Shares authorized	$ 45,000,000	$ 45,000,000
Number of shares issued and fully paid (in thousands)	3,492,104	3,492,104
Shares issued	$ 34,921,043	$ 34,921,043

Fully paid ordinary shares, which have a par value at $10, carry one vote per share and carry a right to dividends.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Issuance of ordinary shares	$ 27,975,030	$ 27,975,030

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 and to once a year).

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Company's Articles of Incorporation (the "Articles"), when the Company makes a profit in a fiscal year, at least 25% of the remaining profit should be distributed as dividends after the profit has been utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the expansion of transportation equipment and improvement of financial structure, and distributing dividends for preference shares. The Company's board of directors should consider long-term financial plans, the change in the environment of the industry, capital expenditures, the working capital for operation and the shareholders' interests as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting. At least 20% of the amount declared as dividends for ordinary shares should be in the form of cash as opposed to stock. For the policies on the distribution of compensation of employees and remuneration of directors, refer to compensation of employees and remuneration of directors in Note 24-h.

Appropriation of earnings to the legal reserve shall at least be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset a deficit. 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.

When a special reserve is appropriated for cumulative net debit balance reserves from prior period and cumulative net increases in fair value measurement of investment properties from prior period, the sum of net profit for current period and items other than net profit that are included directly in the unappropriated earnings for current period is used if the prior unappropriated earnings are not sufficient.

The appropriation of earnings for 2024 and 2023 approved in the shareholders' meeting on May 29, 2025 and May 24, 2024, respectively, were as follows:

	For the Year Ended December 31
	2024	2023
Legal reserve	$ 6,428,289	$ 475,457
(Reversal of) special reserve	$ (829,622)	$ 947,930
Cash dividends	$ 26,190,782	$ 6,984,208
Cash dividends per share (NT$)	$ 7.5	$ 2

The appropriations of earnings for 2025, which were proposed by the Company's board of directors on March 12, 2026, were as follows:

	For the Year Ended December 31, 2025
Legal reserve	$ 1,706,408
Special reserve	$ 708,806
Cash dividends	$ 6,984,209
Cash dividends per share (NT$)	$ 2

The appropriation of earnings for 2025 will be resolved by the shareholders in their meeting to be held on May 29, 2026.

d. Special reserve

Special reserve should be appropriated for the amount equal to the net debit balance reserves. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and thereafter distributed.

On the initial application of fair value model to investment properties, the Company appropriated for a special reserve at the amount that were the same as the net increase arising from fair value measurement and transferred to retained earnings. Additional special reserve should be appropriated for subsequent net increase in fair value. The amount appropriated may be reversed to the extent that the cumulative net increases in fair value decrease or on the disposal of investment properties. If the Company offsets the deficit with special reserves before the reason for appropriating special reserves eliminated, the Company should compensate the special reserves before appropriating earnings.

e. Others equity items

1) Exchange differences on translation of the financial statements of foreign operations

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 7,084,796	$ (346,936)
Recognized for the year
Exchange differences on translation of the financial statements of foreign operations	(8,318,879)	9,192,505
Related income tax	1,618,362	(1,760,773)
Other comprehensive (loss) income recognized for the year	(6,700,517)	7,431,732
Balance on December 31	$ 384,279	$ 7,084,796

2) Unrealized valuation gain (loss) on financial assets at FVTOCI

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ (569,420)	$ (748,123)
Recognized for the year
Unrealized gain
Equity instruments	26,330	38,212
Share from subsidiaries and associates accounted for using the equity method	(102,807)	144,629
Other comprehensive (loss) income recognized for the year	(76,477)	182,841
Cumulative unrealized loss (gain) of equity instruments transferred to retained earnings due to disposal by associates	2,895	(4,138)
Balance on December 31	$ (643,002)	$ (569,420)

3) Gain (loss) on hedging instruments

	Cash Flow Hedge
	For the Year Ended December 31
	2025	2024
Balance on January 1	$ (1,161,468)	$ 187,173
Recognized for the year
Gain (loss) on changes in the fair value of hedging instruments
Foreign currency risk - lease liabilities	2,512,948	(3,047,087)
Foreign currency risk - demand and time deposits	(813,158)	1,157,691
Related income tax	(303,271)	337,160
Reclassification adjustments
Hedged items affects profit or loss
Foreign currency risk - operating revenue	245,076	308,567
Other comprehensive income (loss) recognized for the year	1,641,595	(1,243,669)
Transferred to initial carrying amount of hedged items
Foreign currency risk - prepayments for equipment and construction in progress	(428,511)	(104,972)
Balance on December 31	$ 51,616	$ (1,161,468)

REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Cargo revenue	$ 20,522,956	$ 24,363,152
Slottage revenue	2,173,106	2,107,762
Rental income
Rental revenue on vessel	35,870,381	27,243,066
Container rental income	5,216,568	6,937,384
Agency revenue	3,249,202	3,712,537
Other operating revenue	1,982,751	2,439,274
	$ 69,014,964	$ 66,803,175

a. Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Trade receivables (Note 10)	$ 1,157,117	$ 1,031,244	$ 1,538,978
Contract assets
Cargo revenue	$ 632,471	$ 740,092	$ 376,035
Less: Allowance for impairment loss	(5,392)	(2,202)	(1,119)
Contract assets	$ 627,079	$ 737,890	$ 374,916
Contract liabilities - current
Advance on contract	$ 89,609	$ 370,802	$ 170,373

The Company measures the loss allowance for contract assets at an amount equal to lifetime ECLs. The contract assets will be transferred to accounts receivable when the container shipping services have been completed, and the contract assets have substantially the same risk characteristics as the trade receivables for the same types of contracts. Therefore, the Company concluded that the expected loss rates for trade receivables can be applied to the contract assets (Note 10).

The movements of the loss allowance of contract assets were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 2,202	$ 1,119
Add: Net remeasurement of loss allowance	3,190	1,083
Balance on December 31	$ 5,392	$ 2,202

The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Company's performance and the respective customer's payment.

b. Disaggregation of revenue

Revenue from contracts with customers mainly comes from the containership department.

52 -

24. NET PROFIT

a. Other operating income and expenses

	For the Year Ended December 31
	2025	2024
Gain on disposal and retirement of property, plant and equipment	$ 109,232	$ 182,589
Reimbursement income	246,241	205,059
Reimbursement loss	(212,737)	(126,813)
	$ 142,736	$ 260,835

b. Interest income

	For the Year Ended December 31
	2025	2024
Bank deposits (including USD-denominated demand and time deposits as hedging instruments)	$ 2,070,422	$ 4,042,219
Net investments in leases	10,285	11,966
Long-term receivables - related parties	29,800	63,525
Short-term bills	119,561	98,054
Corporate bonds	129,622	138,802
Others	1,022	3
	$ 2,360,712	$ 4,354,569

c. Other income

	For the Year Ended December 31
	2025	2024
Rental income - operating leases	$ 99,581	$ 103,223
Dividends	20,115	18,772
	$ 119,696	$ 121,995

d. Other gains and losses

	For the Year Ended December 31
	2025	2024
Net foreign exchange gains	$ 1,136,007	$ 2,050,375
Fair value changes of financial assets and financial liabilities
Financial assets mandatorily classified as at FVTPL	171,600	21,325
Loss arising from lease modifications	(533)	(345)
Gain arising from the change in fair value of investment properties	448,808	85,467
Impairment loss recognized on associates (Note 13)	(1,556)	(3,203)
Others	126,917	125,748
	$ 1,881,243	$ 2,279,367

e. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on lease liabilities (including USD-denominated lease contracts designated as hedging instruments)	$ 3,419,004	$ 1,976,475
Other interest expenses	58,838	118,788
	$ 3,477,842	$ 2,095,263

f. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
Right-of-use assets	$ 8,694,670	$ 11,327,715
Property, plant and equipment	7,446,204	5,382,842
Intangible assets	47,729	73,725
	$ 16,188,603	$ 16,784,282
An analysis of depreciation by function
Operating costs	$ 16,021,520	$ 16,615,643
Operating expenses	119,354	94,914
	$ 16,140,874	$ 16,710,557
An analysis of amortization by function
Operating costs	$ 1,031	$ 121
Operating expenses	46,698	73,604
	$ 47,729	$ 73,725

g. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Post-employment benefits
Defined contribution plans	$ 106,055	$ 94,085
Defined benefit plans (Note 21)	52,194	57,691
	158,249	151,776
Termination benefits	17,915	18,347
Other employee benefits	4,049,525	5,457,778
Total employee benefits expense	$ 4,225,689	$ 5,627,901
An analysis of employee benefits expense by function
Operating costs	$ 1,588,009	$ 2,121,050
Operating expenses	2,637,680	3,506,851
	$ 4,225,689	$ 5,627,901

h. Compensation of employees and remuneration of directors

According to the Company's Articles, the Company accrues compensation of employees and remuneration of directors at rates of 1%-5% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. However, if there were accumulated deficit, the Company should reserve offset amount in advance. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate that no less than 40% of the compensation of employees should be allocated to non-managerial employees, and the specific allocation percentage each year shall be resolved by the board of directors.

The compensation of employees (including non-executive employees) and the remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Company's board of directors on March 12, 2026 and March 12, 2025, respectively, are as follows:

Accrual rate

	For the Year Ended December 31
	2025	2024
Compensation of employees	1%	1%
Remuneration of directors	0.0823%	0.0378%
Amount
	For the Year Ended December 31
	2025	2024
	Cash	Cash
Compensation of employees	$ 212,654	$ 794,450
Remuneration of directors	$ 17,500	$ 30,000

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

There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2024 and 2023.

Information on the compensation of employees 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.

54 -

55 -

25. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 3,567,916	$ 3,722,183
Income tax on unappropriated earnings	1,624,672	-
Adjustments for prior years	(2,081,906)	(3,401,551)
	3,110,682	320,632
Deferred tax
In respect of the current year	508,368	11,885,018
Adjustments for prior years	319,212	2,235,790
	827,580	14,120,808
Income tax expense recognized in profit or loss	$ 3,938,262	$ 14,441,440

A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax	$ 21,035,199	$ 78,620,511
Income tax expense calculated at the statutory rate	$ 4,207,040	$ 15,724,102
Nondeductible expenses in determining taxable income	11,152	4,212
Tax-exempt income	(177,168)	(190,522)
Adjustments for prior years’ tax	(1,762,694)	(1,165,761)
Unrecognized deductible temporary differences	10,456	36,970
Offshore income tax	95,594	84,979
Income tax on unappropriated earnings	1,624,672	-
Others	(70,790)	(52,540)
Income tax expense recognized in profit or loss	$ 3,938,262	$ 14,441,440

The Pillar Two Regime issued by the Organization for Economic Co-operation and Development (OECD) applies to the Company.

Some subsidiaries of the Company are registered in tax jurisdictions where the Pillar Two income tax legislation has taken effect, including subsidiaries in Korea, Japan, Vietnam, the Netherlands, the United Kingdom, France, Canada, Belgium, Germany, Spain, Greece, Italy, Austria, Bulgaria, Turkey, Singapore, Malaysia, Thailand, Hong Kong, and Indonesia, among others. According to the legislation, the Company is required to pay supplementary taxes on the difference between the effective tax rate calculated according to the Global Anti-Base Erosion (GloBE) and the minimum tax rate of 15%. The Company has assessed that Pillar Two income tax legislation has no significant impact on the current income tax of the Company as of December 31, 2025, and will continue to review its impact on the Company's future financial performance.

b. Income tax recognized in other comprehensive income (loss)

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year
Translation of foreign operations	$ (1,618,362)	$ 1,760,773
Remeasurement of defined benefit plans	(9,250)	24,629
Cash flow hedges	303,271	(337,160)
	$ (1,324,341)	$ 1,448,242

c. Current tax assets and liabilities

	December 31
	2025	2024
Current tax assets
Tax refund receivable	$ 2,508,933	$ 844,425
Current tax liabilities
Income tax payable	$ 3,152,061	$ 2,753,504

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income (Loss)	Closing Balance
Temporary differences
Unrealized shipping fuel valuation losses	$ 9,879	$ (3,181)	$ -	$ 6,698
Defined benefit plans	347,409	(56,757)	9,250	299,902
Payables for annual leave	22,142	1,927	-	24,069
Unrealized loss on voyage in sailing	3,512	23,310	-	26,822
Exchange differences on translating the financial statements of foreign operations	-	-	110,377	110,377
Loss on hedge instruments	617,879	-	(551,605)	66,274
Others	19,825	25,425	-	45,250
	$ 1,020,646	$ (9,276)	$ (431,978)	$ 579,392

57 -

Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income (Loss)	Closing Balance
Temporary differences
Gain on investments accounted for using the equity method	$ 18,615,370	$ 336,257	$ -	$ 18,951,627
Reserve for land value increment tax	714,048	(1,923)	-	712,125
Investment properties	219,347	52,890	-	272,237
Property, plant and equipment	12,098	817	-	12,915
Exchange differences on translating the financial statements of foreign operations	1,507,985	-	(1,507,985)	-
Unrealized gain on foreign currency exchange	1,430,247	413,697	-	1,843,944
Gain on hedge instruments	327,513	-	(248,334)	79,179
Others	10,234	16,566	-	26,800
	$ 22,836,842	$ 818,304	$ (1,756,319)	$ 21,898,827
For the year ended December 31, 2024
Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income (Loss)	Closing Balance
Temporary differences
Unrealized shipping fuel valuation losses	$ 24,292	$ (14,413)	$ -	$ 9,879
Defined benefit plans	378,220	(6,182)	(24,629)	347,409
Payables for annual leave	20,884	1,258	-	22,142
Unrealized loss on voyage in sailing	28,854	(25,342)	-	3,512
Exchange differences on translating the financial statements of foreign operations	252,788	-	(252,788)	-
Loss on hedge instruments	70,175	-	547,704	617,879
Others	12,180	7,645	-	19,825
	$ 787,393	$ (37,034)	$ 270,287	$ 1,020,646
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income (Loss)	Closing Balance
Temporary differences
Gain on investments accounted for using the equity method	$ 4,779,918	$ 13,835,452	$ -	$ 18,615,370
Reserve for land value increment tax	715,555	(1,507)	-	714,048
Investment properties	213,563	5,784	-	219,347
Property, plant and equipment	22,406	(10,308)	-	12,098
Exchange differences on translating the financial statements of foreign operations	-	-	1,507,985	1,507,985
Unrealized gain on foreign currency exchange	1,180,635	249,612	-	1,430,247
Gain on hedge instruments	116,969	-	210,544	327,513
Others	5,493	4,741	-	10,234
	$ 7,034,539	$ 14,083,774	$ 1,718,529	$ 22,836,842

e. Deductible temporary differences for which no deferred assets have been recognized in the parent company only balance sheets

	December 31
	2025	2024
Deductible temporary differences	$ 628,143	$ 575,861

f. Income tax assessments

The Company’s income tax returns through 2023 have been assessed by the tax authorities.

26. EARNINGS PER SHARE

	Unit: NT$ Per Share
	For the Year Ended December 31
	2025	2024
Basic earnings per share	$ 4.90	$ 18.38
Diluted earnings per share	$ 4.89	$ 18.32

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

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Earnings used in the computation of earnings per share	$ 17,096,937	$ 64,179,071

Weighted Average Number of Ordinary Shares Outstanding (In Thousands of Shares)

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	3,492,104	3,492,104
Effect of potentially dilutive ordinary shares:
Compensation of employees	5,885	10,883
Weighted average number of ordinary shares used in the computation of diluted earnings per share	3,497,989	3,502,987

The Company may settle the compensation of employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are 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.

59 -

27. CASH FLOW INFORMATION

Changes in Liabilities Arising from Financing Activities

For the year ended December 31, 2025

	January 1, 2025	Cash Flows	Non-cash Changes		December 31, 2025
			New Leases	Others (Note)
Bonds payable	$ 5,880,540	$ (2,250,000)	$ -	$ 8,095	$ 3,638,635
Lease liabilities	74,165,738	(7,656,567)	338,389	(3,121,754)	63,725,806
Other non-current liabilities	178,723	119,354	-	-	298,077
	$ 80,225,001	$ (9,787,213)	$ 338,389	$ (3,113,659)	$ 67,662,518

For the year ended December 31, 2024

	January 1, 2024	Cash Flows	Non-cash Changes		December 31, 2024
			New Leases	Others (Note)
Bonds payable	$ 8,354,379	$ (2,500,000)	$ -	$ 26,161	$ 5,880,540
Lease liabilities	60,986,368	(44,676,393)	41,269,972	16,585,791	74,165,738
Other non-current liabilities	230,437	(51,714)	-	-	178,723
	$ 69,571,184	$ (47,228,107)	$ 41,269,972	$ 16,611,952	$ 80,225,001

In 2024, according to the agreement with All Oceans Transportation Inc., the Company offset the long-term receivables with the lease liabilities in the amount of $289,875 thousand.

Note: Other changes include lease modification, interest amortization of bonds payable, effect of foreign currency exchange rate, and offset of long-term receivables and lease liabilities.

28. CAPITAL MANAGEMENT

The Company manages its capital to ensure that the Company will be able to continue as going concerns to maintain the capital structure through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Company (comprising issued capital, capital surplus, retained earnings and other equity).

29. FINANCIAL INSTRUMENTS

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

December 31, 2025

	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets
Financial lease receivables	$ 444,777	$ -	$ 443,843	$ -	$ 443,843
Financial assets measured at amortized cost
Foreign corporate bonds	2,424,022	-	2,453,454	-	2,453,454
	$ 2,868,799	$ -	$ 2,897,297	$ -	$ 2,897,297
					(Continued)

	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial liabilities
Financial liabilities measured at amortized cost
Secured domestic bonds	$ 3,638,635	$ -	$ 3,638,626	$ -	$ 3,638,626
					(Concluded)

December 31, 2024

	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets
Financial lease receivables	$ 508,561	$ -	$ 506,910	$ -	$ 506,910
Financial assets measured at amortized cost
Foreign corporate bonds	2,754,266	-	2,746,046	-	2,746,046
	$ 3,262,827	$ -	$ 3,252,956	$ -	$ 3,252,956
Financial liabilities
Financial liabilities measured at amortized cost
Secured domestic bonds	$ 5,880,540	$ -	$ 5,870,493	$ -	$ 5,870,493

The fair values of the financial assets and financial liabilities included in the Level 2 category above have been determined in accordance with income approaches based on a discounted cash flow analysis; the fair values of corporate bonds and bonds payable have been determined by quoted market prices provided by third-party pricing services.

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

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Domestic listed shares	$ 500,729	$ -	$ -	$ 500,729
Mutual funds	18,448,003	-	-	18,448,003
Domestic limited partnership	-	-	24,974	24,974
	$ 18,948,732	$ -	$ 24,974	$ 18,973,706
Financial assets at FVTOCI
Investments in equity instruments
Domestic unlisted shares	$ -	$ -	$ 554,841	$ 554,841

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Domestic listed shares	$ 422,571	$ -	$ -	$ 422,571
Mutual funds	2,567,291	-	-	2,567,291
Domestic limited partnership	-	-	25,817	25,817
	$ 2,989,862	$ -	$ 25,817	$ 3,015,679
Financial assets at FVTOCI
Investments in equity instruments
Domestic unlisted shares	$ -	$ -	$ 528,511	$ 528,511

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

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2025

Financial assets at FVTPL

	Other Instruments
	Domestic Limited Partnership
Balance on January 1, 2025	$ 25,817
Recognized in profit or loss (included in other gains and losses)	862
Purchases	-
Sales/settlements	(1,705)
Transfers out of Level 3	-
Balance on December 31, 2025	$ 24,974
Unrealized gain for the current year included in profit or loss relating to assets held at the end of the year	$ 862
Financial assets at FVTOCI
	Equity Instruments
Balance on January 1, 2025	$ 528,511
Recognized in other comprehensive income (included in unrealized valuation gain on financial assets at FVTOCI)	26,330
Balance on December 31, 2025	$ 554,841

For the year ended December 31, 2024

Financial assets at FVTPL

	Other Instruments
	Domestic Limited Partnership
Balance on January 1, 2024	$ 29,111
Recognized in profit or loss (included in other gains and losses)	(3,294)
Purchases	-
Transfers out of Level 3	-
Balance on December 31, 2024	$ 25,817
Unrealized loss for the current year included in profit or loss relating to assets held at the end of the year	$ (3,294)
Financial assets at FVTOCI
	Equity Instruments
Balance on January 1, 2024	$ 490,299
Recognized in other comprehensive income (included in unrealized valuation gain on financial assets at FVTOCI)	38,212
Balance on December 31, 2024	$ 528,511

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

The fair values of domestic unlisted ordinary shares and domestic limited partnership are determined using the comparable company analysis approach and asset-based approach. The comparable company analysis approach is a way to determine the value of a target company by reference to companies engaged in the similar industry, stock price in the active market and value multiplier implied by such prices, based on liquidity reduction. The asset-based approach is a way to determine the value of a target company by assessing the total value of individual assets and liabilities, based on liquidity reduction.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$ 18,973,706	$ 3,015,679
Financial assets at amortized cost (1)	31,498,624	70,950,606
Financial assets for hedging	7,069,864	17,210,159
Financial assets at FVTOCI
Equity instruments	554,841	528,511
		(Continued)

December 31

2025

2024

Financial liabilities

Financial liabilities for hedging	$ 52,215,552	$ 60,112,340
Amortized cost (2)	16,968,700	16,740,465
		(Concluded)

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, time deposits with original maturity of more than 3 months, repurchase agreements, corporate bonds, restricted bank deposits, trade receivables (including related parties), and other receivables (including related parties).

2) The balances included financial liabilities measured at amortized cost, which comprise trade payables (including related parties), other payables, and bonds payable.

d. Financial risk management objectives and policies

The Company's major financial instruments include equity and debt investments, trade receivables, financial assets at amortized cost, trade payables, other payables, bonds payable, borrowings and lease liabilities. The Company's Corporate Treasury function provides all kinds of financial service to each division by using different financial instruments. Also, the treasury function controls and analyzes the financial risks related to operations; these risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company sought to minimize the effects of these risks by managing stocks and flow and using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Company's policies "Regulations Governing the Acquisition and Disposal of Assets" approved by the board of directors. Compliance with policies was reviewed by the internal auditors on a continuous basis.

1) Market risk

The Company'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 Company uses assets, liabilities and a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk.

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

a) Foreign currency risk

The Company's operations involve foreign currency transactions so the Company is exposed to foreign currency risk. The Company's transaction involves contain various currencies due to its industrial feature, operating revenue and operating costs are mainly denominated in U.S. dollars. Exchange rate exposures were managed within approved policy parameters utilizing net cash flows offset of the influence on net assets and liabilities, instruments of swap and options.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities are set out in Note 33.

Sensitivity analysis

Monetary assets and liabilities were mainly exposed to the U.S. dollars, GBP, CNY, EUR, HKD, JPY and AUD.

The following table details the Company's sensitivity to a 1% increase and decrease in New Taiwan dollars (the functional currency) against the U.S. dollars, GBP, CNY, EUR, HKD, JPY and AUD. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusted their translation at the end of the reporting period for a 1% change in foreign currency rates. A positive number below indicates an increase in pre-tax profit (loss) associated with New Taiwan dollars weakening 1% against U.S. dollars, GBP, CNY, EUR, HKD, JPY and AUD. For a 1% strengthening of New Taiwan dollars against the U.S. dollars, GBP, CNY, EUR, HKD, JPY and AUD, there would be an equal and opposite impact on pre-tax profit (loss).

Profit (Loss)/Equity of 1% Variation	For the Year Ended December 31
	2025	2024
Profit or loss (i)
U.S. dollars	$ (110,256)	$ 36,154
GBP	42,005	42,536
CNY	3,729	3,541
EUR	41,633	75,593
HKD	(841)	798
JPY	25,066	17,307
AUD	17,274	19,293
Equity (ii)
U.S. dollars	(451,457)	(429,022)

i. This was mainly attributable to the exposure of outstanding foreign currency deposits, repurchase bonds, corporate bonds, receivables, and payables at the end of the reporting period.
ii. This was mainly attribute to the exposure of changing in foreign exchange rates of U.S. dollars demand and time deposit and lease contracts designated as cash flow hedge.

The Company's sensitivity to foreign currency changes during the current period was mainly due to the decrease in EUR, GBP and AUD monetary net assets caused by the decrease in EUR, GBP and AUD monetary assets; the increase in CNY monetary net assets caused by the decrease in CNY monetary liability; the increase in JPY monetary net assets caused by the increase in JPY monetary assets; the increase in U.S. dollar and HKD monetary net liability caused by the decrease in U.S. dollar and HKD monetary assets.

Hedge accounting

The Company's hedging strategy is to enter into USD-denominated demand deposits and time deposits to avoid exchange rate exposure of highly possible USD-denominated payments for ship purchases. Those transactions are designated as cash flow hedges.

The Company expects that the value of the U.S. dollars demand deposits and time deposits will have systematically changed in opposite directions with the value of corresponding hedged items.

The source of hedge ineffectiveness in these hedging relationships is the USD-denominated demand deposits and time deposits are not paid for USD-denominated ship purchases.

There was no other source of hedge ineffectiveness during hedging period.

The Company's hedging strategy is to enter into USD-denominated lease liabilities to avoid exchange rate exposure of 100% of highly probable forecast of USD-denominated operating revenue. Those transactions are designated as cash flow hedges.

The Company expects that the value of the U.S. dollars lease liabilities and the value of the corresponding hedged items will systematically change in opposite directions.

The source of hedge ineffectiveness in these hedging relationships is the USD-denominated operating revenue of the Company is lower than the distribution amount of settlement of lease liabilities.

There was no other source of hedge ineffectiveness during hedging period.

Refer to Notes 6 and 15-b for information relating to foreign exchange rates hedging instruments.

b) Interest rate risk

The Company was exposed to interest rate risk because the Company borrowed funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix of fixed and floating rate borrowings.

The carrying amount of the Company's financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 20,877,009	$ 67,445,852
Financial liabilities	67,364,441	80,046,278
Cash flow interest rate risk
Financial assets	13,280,917	16,457,323
Financial liabilities	-	-

Sensitivity analysis

The sensitivity analyses below were determined based on the Company's exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 10 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been 10 basis points higher/lower and all other variables were held constant, the Company's pre-tax profit (loss) for the year ended December 31, 2025 would have increased/decreased by $13,281 thousand, which was mainly attributable to the Company's exposure to interest rates on its variable-rate financial assets.

If interest rates had been 10 basis points higher/lower and all other variables were held constant, the Company’s pre-tax profit (loss) for the year ended December 31, 2024 would have increased/decreased by $16,457 thousand, which was mainly attributable to the Company’s exposure to interest rates on its variable-rate financial assets.

The Company’s sensitivity to interest rate decreased during the current year mainly due to the decrease in variable-rate financial assets.

c) Other price risk

The Company was exposed to equity price risk through its investments in listed equity securities, and exposed to other price risk through its investments in limited partnership and mutual funds. The Company periodically evaluates price risk and investment performance according to procedures of acquisition and disposal of assets and expects no significant price risk occurred.

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 5% higher/lower, pre-tax profit (loss) for the year ended December 31, 2025 would have increased/decreased by $25,036 thousand, as a result of the changes in fair value of financial assets at FVTPL, and the other comprehensive income (loss) for the year ended December 31, 2025 would have increased/decreased by $27,742 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

If equity prices had been 5% higher/lower, pre-tax profit (loss) for the year ended December 31, 2024 would have increased/decreased by $21,129 thousand, as a result of the changes in fair value of financial assets at FVTPL, and the other comprehensive income (loss) for the year ended December 31, 2024 would have increased/decreased by $26,426 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

If limited partnership and mutual funds had been 5% higher/lower, pre-tax profit (loss) for the year ended December 31, 2025 would have increased/decreased by $923,649 thousand, as a result of the changes in fair value of financial assets at FVTPL.

If limited partnership and mutual funds had been 5% higher/lower, pre-tax profit (loss) for the year ended December 31, 2024 would have increased/decreased by $129,655 thousand, as a result of the changes in fair value of financial assets at FVTPL.

The Company’s sensitivity to investments in equity securities has not changed significantly from the prior year. The Company’s sensitivity to limited partnership and mutual fund prices increased during the current year, mainly due to the increase in investment positions of financial assets at FVTPL.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to failure of counterparties to discharge an obligation and financial guarantees provided by the Company could arise from:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and

66 -

b) The maximum amount of the Company would have to pay if the financial guarantee is called upon.

There is no significant concentration of credit risk for the Company. Credit risk is from cash and cash equivalents deposit in banks, derivative financial instruments transactions with banks and financial institutions and trade receivables from customers.

The Company adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient letter of bank guarantee and security deposit, where appropriate, as a means of mitigating the risk of financial loss from defaults. To reduce credit risk, the Company has established an internal monitoring procedure to monitor credit risk exposure and credit condition of counterparties.

The credit risk on liquid funds and derivatives was limited because the counterparties are banks with high credit ratings assigned by credit-rating agencies.

Financial credit risk

The objective of the Company's investment policy is to achieve a return that will allow the Company to preserve principal and support liquidity requirements. The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings, by limiting the exposure to any individual counterparty, and by regularly reviewing the market conditions and monitoring risk.

The Company assesses whether there has been a significant increase in credit risk in the invested securities since initial recognition by reviewing changes in external credit ratings, financial market conditions and material information of the issuers. The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows:

Category	Description	Basis for Recognizing Expected Credit Loss	Expected Credit Loss Ratio
Performing	Credit rating is investment grade on valuation date	12 months expected credit loss	0.0125%-0.0318%
Doubtful	Credit rating is non-investment grade on valuation date	Lifetime expected credit loss-not credit impaired	-
In default	Credit rating is CC or below on valuation date	Lifetime expected credit loss-credit impaired	-
Write-off	There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery	Amount is written off	-

For the years ended December 31, 2025 and 2024, the expected credit loss decreased $258 thousand and increased $237 thousand, respectively. The changes were mainly due to adjusted investment amount and investment portfolio.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company'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 Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Company had available unutilized bank loans facilities of $9,342,828 thousand and $9,112,387 thousand, respectively.

a) Liquidity and interest risk rate tables

The following table details the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The tables included 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 repayment dates.

December 31, 2025

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years
Non-interest bearing	$ 15,736,856	$ 298,077	$ -	$ -
Lease liabilities	10,912,260	40,444,033	27,041,468	2,491
Fixed interest rate liabilities	2,260,106	1,405,638	-	-
Short-term and low value lease commitment	1,400,830	3,245,564	351,244	-
Lease commitment for future service costs	2,676,601	9,704,139	6,029,225	-
	$ 32,986,653	$ 55,097,451	$ 33,421,937	$ 2,491

December 31, 2024

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years
Non-interest bearing	$ 14,526,032	$ 178,723	$ -	$ -
Lease liabilities	11,508,208	43,673,951	35,919,689	1,941,763
Fixed interest rate liabilities	2,270,231	3,665,744	-	-
Short-term and low value lease commitment	1,475,816	3,384,023	726,073	-
Lease commitment for future service costs	2,740,281	10,495,993	8,173,271	428,622
Financial guarantee liabilities	98,370	-	-	-
	$ 32,618,938	$ 61,398,434	$ 44,819,033	$ 2,370,385

The amounts included above for financial guarantee contracts were within the limitation the Company can offer to related parties; i.e. the maximum amounts the Company could be required to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the reporting period, the management considers that it is more likely than not that no amount will be payable under the arrangement.

b) Derivative instruments

The Company did not have outstanding derivative instruments contracts for the years ended December 31, 2025 and 2024.

69 -

30. TRANSACTIONS WITH RELATED PARTIES

The Ministry of Transportation and Communications R.O.C. (MOTC), National Development Fund, and Taiwan International Ports Corporation, Ltd. held 31.16% of the ordinary shares of YMCT as of December 31, 2025 and 2024. Over 50% of the members of YMTC’s board of directors were appointed by the MOTC, National Development Fund, and Taiwan International Ports Corporation, Ltd. Therefore, the Company is a government-related entity, which is controlled by the central government. Transactions with other government-related entities were mainly bank deposits and guarantees with government-related banks (see Note 17) and concession rights of the Port of Kaohsiung, Taiwan International Ports Corporation Kaohsiung logistics center (see Note 15).

Besides information disclosed elsewhere in the other notes and Tables A and B, details of transaction between the Company and other related parties are disclosed as follows.

a. Related party name and categories

Related Party Name	Related Party Category
All Oceans Transportation Inc.	Subsidiary
Hong Ming Terminal & Stevedoring Corp.	Subsidiary
Jing Ming Transportation Co., Ltd.	Subsidiary
Yang Ming Line (Hong Kong) Ltd.	Subsidiary
Yang Ming Line (India) Pvt. Ltd.	Subsidiary
Yang Ming (Korea) Co., Ltd	Subsidiary
Yang Ming (Japan) Co., Ltd.	Subsidiary
Yang Ming (Singapore) Pte. Ltd.	Subsidiary
Yang Ming Line (M) Sdn. Bhd.	Subsidiary
Yang Ming Shipping (Vietnam) Co., Ltd.	Subsidiary
Yang Ming Anatolia Shipping Agency S.A.	Subsidiary
Yang Ming Shipping Philippines, Inc.	Subsidiary
Yang Ming (Latin America) Corp.	Subsidiary
Yang Ming Line (Thailand) Co., Ltd.	Subsidiary
Yang Ming Insurance Co., Ltd.	Subsidiary
PT Yang Ming Shipping Indonesia	Subsidiary
Huan Ming (Shanghai) International Shipping Agency Co., Ltd.	Subsidiary
Yang Ming (France) SAS	Subsidiary
Yang Ming (America) Corp.	Subsidiary
Yang Ming Shipping (Canada) Ltd.	Subsidiary
Yang Ming Line (Belgium) N.V.	Subsidiary
Yang Ming (Netherlands) B.V.	Subsidiary
Yang Ming (Italy) S.P.A.	Subsidiary
Yang Ming (UK) Ltd	Subsidiary
Yang Ming Shipping Europe GmbH	Subsidiary
Yang Ming (Spain), S.L.	Subsidiary
Yang Ming (MEDITERRANEAN) Marine Services
Single-Member Limited Liability Company	Subsidiary
Kuang Ming Shipping Corp.	Subsidiary
YES Logistics Corp.	Subsidiary
YES Logistics Corporation (USA)	Subsidiary
Golden Logistics USA Corporation	Subsidiary
Yes Logistics (Shanghai) Corp.	Subsidiary
Yes Logistics Company Ltd.	Subsidiary
PT. YES Logistics Indonesia	Subsidiary

(Continued)

Related Party Name
Related Party Category

Yunn Wang Investment Co., Ltd. Associate
Yang Ming (U.A.E.) LLC Associate
Yang Ming (Australia) Pty. Ltd. Associate
Yang Ming Shipping (Egypt) S.A.E Associate
Kao Ming Container Terminal Corp. Associate
Taiwan Navigation Co., Ltd. Associate
Taiwan Foundation International Pte. Ltd. Associate
LogiTrans Technology Private Limited Joint venture
Chunghwa Telecom Co., Ltd. Government - related party
Taiwan International Ports Corporation, Ltd. Government - related party
Chunghwa Post Co., Ltd. Government - related party
Agricultural Bank of Taiwan Government - related party
Taipei Exchange Government - related party
First Commercial Bank Government - related party
Mega International Commercial Bank Co., Ltd. Government - related party
Chung Kuo Insurance Company, Limited Government - related party
Mega Securities Government - related party
Mega Financial Holding Company Ltd. Government - related party
Bank of Taiwan Government - related party
Land Bank of Taiwan Government - related party
Taiwan Cooperative Bank Co., Ltd. Government - related party
Taiwan Cooperative Bills Finance Co. Government - related party
Taiwan Business Bank Co., Ltd. Government - related party
Chang Hwa Commercial Bank, Ltd. Government - related party
Taiwan Power Company Government - related party
Taiwan Water Corporation Government - related party
CPC Corporation, Taiwan Government - related party
CSBC Corporation, Taiwan Government - related party
Hua Nan Commercial Bank, Ltd. Government - related party
Taiwan Stock Exchange Corporation Government - related party
South China Insurance Co., Ltd. Government - related party
National Property Administration, MOF Government - related party
National Taiwan Ocean University Government - related party
Keelung Hospital, Ministry of Health and Welfare Government - related party
Ministry of the Interior Government - related party
National Kaohsiung University of Science and Technology Government - related party
National Museum of Marine Science and Technology Government - related party
National Chengchi University Government - related party
Ministry of the Environment Government - related party
Maritime and Port Bureau, MOTC Government - related party
Taiwan Centers for Disease Control Government - related party
Customs Administration, MOF Government - related party
C.S. Aluminium Corporation Government - related party
Bureau of Standards, Metrology and Inspection, MOEA Government - related party
China Steel Express Corporation Government - related party
National Taiwan University Government - related party
Ministry of National Defense Government - related party
Yang Ming Cultural Foundation Other related party

(Concluded)

70 -

b. Operating transaction

Line Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Operating revenue	Subsidiaries
	Yang Ming (Singapore) Pte. Ltd.	$ 45,963,572	$ 39,606,254
	Others	3,403,229	5,136,599
		49,366,801	44,742,853
	Associates	-	17,152
	Government - related parties	2,089	1,937
		$ 49,368,890	$ 44,761,942
Operating costs	Subsidiaries	$ 4,662,921	$ 4,960,410
	Associates	271,368	279,478
	Government - related parties	151,401	175,230
		$ 5,085,690	$ 5,415,118
Operating expenses	Subsidiaries	$ 486	$ 128
	Associates	389	-
	Joint ventures	68,985	68,177
	Government - related parties	51,010	55,264
	Other related parties	32,278	26,012
		$ 153,148	$ 149,581

The Company's transactions with related parties were conducted under contract terms.

c. Bank deposits

Bank deposits on reporting period (including time deposits with original maturities of more than 3 months and restricted bank balance under financial assets at amortized cost and financial assets for hedging) were as follows:

	December 31
Related Party Category/Name	2025	2024
Government - related parties	$ 6,179,350	$ 15,328,725

d. Contract assets

	December 31
Related Party Category/Name	2025	2024
Subsidiaries	$ 243,825	$ 243,226
Associates	10,489	15,688
	$ 254,314	$ 258,914

For the years ended December 31, 2025 and 2024, no impairment loss was recognized for contract assets from related parties.

e. Receivables and payables from related parties

Line Item	Related Party Category/Name	December 31
		2025	2024
Trade receivables	Subsidiaries	$ 299,387	$ 401,722
	Associates	1,488	5,754
	Government - related parties	3,648	485
		$ 304,523	$ 407,961
Other receivables	Subsidiaries
	Yang Ming (Singapore) Pte. Ltd.	$ 3,486,320	$ 3,159,710
	Kuang Ming Shipping Corp.	1,502,814	1,503,741
	Others	38,785	286,638
		5,027,919	4,950,089
	Associates	11,993	105
	Government - related parties	4,667	43,215
	Other related parties	3,651	4,915
		$ 5,048,230	$ 4,998,324
Trade payables	Subsidiaries	$ 2,445,873	$ 2,801,521
	Associates	428,568	383,990
	Government - related parties	16,441	17,815
		$ 2,890,882	$ 3,203,326
Other payables	Subsidiaries
	Yang Ming (Singapore) Pte. Ltd.	$ 1,483,241	$ 1,332,711
	Others	12,337	16,839
		1,495,578	1,349,550
	Government - related parties	14,388	19,654
		$ 1,509,966	$ 1,369,204

For the years ended December 31, 2025 and 2024, no impairment loss was recognized for trade receivables and other receivables from related parties.

f. Financial assets at amortized cost

Bonds on reporting period were as follows:

	December 31
Related Party Category/Name	2025	2024
Subsidiaries
Kuang Ming Shipping Corp.	$ -	$ 600,000

g. Prepayments

Line Item	Related Party Category/Name	December 31
		2025	2024
Prepayments	Subsidiaries	$ 13,832	$ 12,188
	Government - related parties	1,183	152
		$ 15,015	$ 12,340
Prepayments for equipment	Government - related parties	$ -	$ 160

h. Disposals of property, plant and equipment

		Proceeds
		For the Year Ended December 31
Line Item	Related Party Category/Name	2025	2024
Disposals of property, plant and equipment	Subsidiaries	$ -	$ 800
	Associates	23	-
		$ 23	$ 800
		Gain (Loss) on Disposal
		For the Year Ended December 31
Line Item	Related Party Category/Name	2025	2024
Disposals of property, plant and equipment	Subsidiaries	$ -	$ 800
	Associates	23	-
		$ 23	$ 800

i. Lease arrangements - the Company is lessee

		For the Year Ended December 31
Related Party Category/Name		2025	2024
Acquisition of right-of-use assets
Subsidiaries		$ -	$ 3,921
Associates		5,710	-
Government - related parties		19,374	919
		$ 25,084	$ 4,840
		December 31
Line Item	Related Party Category/Name	2025	2024
Lease liabilities	Subsidiaries	$ 4,616	$ 5,855
	Associates	4,625	-
	Government - related parties	241,616	288,102
		$ 250,857	$ 293,957

74 -

Line Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Interest expense	Subsidiaries	$ 96	$ 63,023
	Associates	114	-
	Government - related parties	4,071	4,835
		$ 4,281	$ 67,858

The Company’s lease agreements with related parties were conducted under contract terms.

j. Lease arrangements - the Company is lessor/sublease arrangements

Lease arrangements - the Company is lessor under finance leases

The Company leased out certain dock port equipment included in property, plant, and equipment to its subsidiary, Hong Ming Terminal & Stevedoring Corp. The original finance leases, with a lease term of 6.5 years and a net investment in leases of $165,289 thousand at the inception of the lease, had been extended by 6 months, adjusting the total rental period to 7 years in 2024. In April 2025 and July 2024, due to unleashing old equipment that needed to be retired, the net lease investment on the revised date was $645 thousand and $2,205 thousand, respectively. The remaining lease period was 0.8 and 1.5 years, respectively. As of December 31, 2024, the balance of finance lease receivables was $1,533 thousand. As of December 31, 2025, the finance lease contracts had expired.

For the years ended December 31, 2025 and 2024, no impairment loss was recognized for finance lease receivables from related parties.

Lease arrangements - sublease arrangements under finance leases

The Company subleased container yard at Keelung included in right-of-use assets to its subsidiary YES Logistics Corp. under finance leases with a lease term of 10 years, and the net investment in leases was $44,555 thousand at the inception of the lease. As of December 31, 2025 and 2024, the balance of finance lease receivables was $18,660 thousand and $23,654 thousand, respectively.

The Company subleased the First and Second Logistics Centers of the Kaohsiung Third Container Center to its subsidiary YES Logistics Corp. under finance leases with lease terms of 13.5 years and 18 years, and the net investment in leases was $207,491 thousand and $396,001 thousand at the inception of the lease. As of December 31, 2025, the balance of finance lease receivables was $101,293 thousand and $260,053 thousand, respectively. As of December 31, 2024, the balance of finance lease receivables was $116,645 thousand and $280,933 thousand, respectively.

For the years ended December 31, 2025 and 2024, no impairment loss was recognized for finance lease receivables from related parties.

k. Bonds payable

Related Party Category/Name	December 31
	2025	2024
Government - related parties
Hua Nan commercial Bank Ltd.	$ 350,000	$ 700,000
Others	400,000	800,000
	$ 750,000	$ 1,500,000

Note: Original investment amount of domestic bonds.

Others

Line Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Rental income	Subsidiaries	$ 13,613	$ 13,002
	Associates	137	137
	Government - related parties	11,530	11,530
	Other related parties	2,857	2,857
		$ 28,137	$ 27,526
Interest income	Subsidiaries	$ 49,040	$ 85,027
	Government - related parties
	Taiwan Cooperation Bank Co., Ltd.	78,172	660,989
	Others	471,330	564,027
		549,502	1,225,016
		$ 598,542	$ 1,310,043
Finance costs	Subsidiaries	$ 16	$ 2
	Government - related parties	48,733	104,258
		$ 48,749	$ 104,260
Reimbursement income	Subsidiaries	$ 692	$ 272
Other gains and losses	Subsidiaries	$ 114,532	$ 123,127
	Associates	60,940	42,275
	Government - related parties	2,409	(2,624)
		$ 177,881	$ 162,778

The Company's transactions with related parties were conducted under contract terms.

m. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 89,991	$ 120,141
Post-employment benefits	3,309	9,707
	$ 93,300	$ 129,848

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

76 -

31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank guarantees:

	December 31
	2025	2024
Restricted bank deposits (included in financial assets at amortized cost)	$ 92,983	$ 89,982

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in Table B and Note 15, commitments and contingent liabilities on reporting periods were as follows:

a. The Company’s shipping and port businesses were secured by the letter of guarantee issued by the bank for $73,859 thousand and $382,705 thousand as of December 31, 2025 and 2024, respectively.

b. The Company signed container building contracts with other companies. As of December 31, 2025, prepayments for equipment for these contracts amounted to $76,400 thousand. In addition, unpaid amounts for these contracts were US$33,585 thousand and US$14,159 thousand as of December 31, 2025 and 2024, respectively.

c. The Company signed shipbuilding contracts with other companies. As of December 31, 2025 and 2024, prepayments for equipment for these contracts amounted to US$225,815 thousand and US$299,920 thousand, respectively. Unpaid amounts for these contracts were US$2,090,625 thousand and US$524,860 thousand, respectively.

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2025

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 699,750	31.4300 (USD:NTD)	$ 21,993,139
GBP	99,619	42.2655 (GBP:NTD)	4,210,463
CNY	169,634	4.4971 (CNY:NTD)	762,865
EUR	120,541	36.8658 (EUR:NTD)	4,443,846
HKD	1,980	4.0380 (HKD:NTD)	7,997
JPY	12,825,964	0.2007 (JPY:NTD)	2,574,613
CAD	2,847	22.9274 (CAD:NTD)	65,281
AUD	82,556	21.0047 (AUD:NTD)	1,734,069
			(Continued)

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount
Non-monetary items
Investments accounted for using the equity method
USD	$ 5,425,370	31.4300 (USD:NTD)	$ 170,519,393
CNY	1,722	4.4971 (CNY:NTD)	7,745
EUR	79,685	36.8658 (EUR:NTD)	2,937,649
Financial liabilities
Monetary items
USD	2,486,937	31.4300 (USD:NTD)	78,164,418
GBP	236	42.2655 (GBP:NTD)	9,959
CNY	86,713	4.4971 (CNY:NTD)	389,958
EUR	7,610	36.8658 (EUR:NTD)	280,563
HKD	22,815	4.0380 (HKD:NTD)	92,127
JPY	338,978	0.2007 (JPY:NTD)	68,045
CAD	288	22.9274 (CAD:NTD)	6,598
AUD	317	21.0047 (AUD:NTD)	6,656
			(Concluded)
December 31, 2024
	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 1,389,214	32.7900 (USD:NTD)	$ 45,552,335
GBP	103,631	41.1465 (GBP:NTD)	4,264,062
CNY	175,815	4.4923 (CNY:NTD)	789,820
EUR	229,364	34.1262 (EUR:NTD)	7,827,316
HKD	54,411	4.2229 (HKD:NTD)	229,771
JPY	8,667,977	0.2100 (JPY:NTD)	1,820,308
CAD	1,016	22.8033 (CAD:NTD)	23,170
AUD	95,331	20.3806 (AUD:NTD)	1,942,896
Non-monetary items
Investments accounted for using the equity method
USD	5,578,385	32.7900 (USD:NTD)	182,915,250
CNY	2,103	4.4923 (CNY:NTD)	9,448
EUR	78,219	34.1262 (EUR:NTD)	2,669,310
			(Continued)

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount
Financial liabilities
Monetary items
USD	$ 2,587,347	32.7900 (USD:NTD)	$ 84,839,114
GBP	254	41.1465 (GBP:NTD)	10,471
CNY	97,000	4.4923 (CNY:NTD)	435,755
EUR	7,852	34.1262 (EUR:NTD)	267,972
HKD	35,512	4.2229 (HKD:NTD)	149,962
JPY	426,723	0.2100 (JPY:NTD)	89,614
CAD	296	22.8033 (CAD:NTD)	6,755
AUD	669	20.3806 (AUD:NTD)	13,640
			(Concluded)

For the years ended December 31, 2025 and 2024, realized and unrealized net foreign exchange gains were $1,136,007 thousand and $2,050,375 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 and functional currencies of the Company.

34. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others: See Table A attached;
2) Endorsement/guarantee provided: See Table B attached;
3) Significant marketable securities held: See Table C attached;
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None;
5) Receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table D attached;

b. Information on investees: See Table E attached.

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, repatriations of investment income, and limit on the amount of investment in the mainland China area: See Table F attached;

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: None;

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 end of period balance, the interest rate range, and total current period interest with respect to financing of funds.

f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.

79 -

TABLE A

YANG MING MARINE TRANSPORT CORPORATION

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Relate Parties	Highest Balance for the Period	Ending Balance	Actual Borrowing Amounts	Interest Rate	Nature of Financing (Note A)	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note B)	Aggregate Financing Limits (Note B)
													Item	Value
0	Yang Ming Marine Transport Corporation	Kuang Ming Shipping Corp.	Other receivables	Y	$ 3,000,000	$ 1,500,000	$ 1,500,000	2.0000%	2	$ -	Obtain working capital	$ -	-	$ -	$ 16,292,534	$ 32,585,067

Notes:
A. Nature of financing:
1. The Company has transactions with the borrower.
2. The borrower needs short-term financing.
B. The maximum financing amount is the 60% of the net assets of the lender. For borrowers with transactions with the lender, maximum financing is 50% of the net assets of the lender. For the borrower with transactions with the lender, maximum financing is the lower of 15% of the net assets of the lender or the total amount of transactions between the lender and the borrower in the last two years. For subsidiaries with transactions with the lender, maximum financing is the lower of 40% of the latest net assets of the lender or the total amount of transactions between the lender and the borrower in the last five years. For borrowers with short-term financing needs, the maximum is 10% of the net assets of the lender. For the borrower needing short-term financing, maximum financing is 5% of the net assets of the lender.

TABLE B

YANG MING MARINE TRANSPORT CORPORATION

ENDORSEMENT/GUARANTEE PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorser/Guarantee		Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note A)	Maximum Amount Endorsed/ Guaranteed During the Period (Note B)	Outstanding Endorsement/ Guarantee at the End of the Period (Note B)	Actual Borrowing Amount (Note B)	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note A)	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	Yang Ming Marine Transport Corporation	Yang Ming (America) Corp.	Subsidiary	$ 521,361,072	$ 94,290 (US$ 3,000 thousand)	$ -	$ -	$ -	-	$ 977,552,010	Y	N	N

Notes:
A. 1. Represents 300% of the latest net assets audited or reviewed by CPA of the Company. Represents 160% of the amount as aforementioned.
2. Represents 400% of the latest net assets audited or reviewed by CPA of the Company. Represents 180% of the amount as aforementioned.
B. United States dollars translated into New Taiwan dollars at the exchange rate of US$1=NTS31.4300 as of December 31, 2025.

81 -

TABLE C

YANG MING MARINE TRANSPORT CORPORATION

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Yang Ming Marine Transport Corporation	Domestic unlisted shares
Taipei Port Container Terminal Co., Ltd.	-	Financial assets at FVTOCI - non-current	51,000,000	$ 536,664	9.81	$ 536,664
	Mutual funds
Taishin 1699 Money Market Fund	-	Financial assets at FVTPL - current	166,477,909	2,392,188	-	2,392,188
	Taishin Ta Chong Money Market Fund	-	Financial assets at FVTPL - current	39,893,087	600,219	-	600,219
	Franklin Templeton Sinoam Money Market Fund	-	Financial assets at FVTPL - current	55,297,798	605,455	-	605,455
	FSITC Taiwan Money Market Fund	-	Financial assets at FVTPL - current	37,037,723	600,337	-	600,337
	UPAMC James Bond Money Market Fund	-	Financial assets at FVTPL - current	709,716,374	12,535,011	-	12,535,011
	Fubon Money Market Fund	-	Financial assets at FVTPL - current	82,943,956	1,302,942	-	1,302,942
	Shin Kong Chi-Shin Money Market Fund	-	Financial assets at FVTPL - current	24,455,558	400,225	-	400,225
	Corporate bonds
Citigroup Global Markets Holdings	-	Financial assets at amortized cost - non-current	-	471,300	-	470,408

TABLE D

YANG MING MARINE TRANSPORT CORPORATION

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

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Action Taken
Yang Ming Marine Transport Corporation	Yang Ming (Singapore) Pte. Ltd.	Subsidiary	$ 3,498,493	-	$ -	-	$ 3,498,493	$ -
	Kuang Ming Shipping Corp.	Subsidiary	1,502,839
(Note A)	-	-	-	-	-
	YES Logistics Corp.	Subsidiary	421,972
(Note B)	-	-	-	12,600	-

Notes:
A. Financing provided and interest receivable.
B. Finance lease receivables and other receivables.
C. Collections of freight and fees between related parties, which were made according to "Agency Accounting Procedure" by the Company and local business conventions.

83 -

TABLE E

YANG MING MARINE TRANSPORT CORPORATION

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount (Note A)		As of December 31, 2025			Net Income (Loss) of the Investor	Share of Profits (Loss)	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership (%)	Carrying Amount
Yang Ming Marine Transport Corporation	Kao Ming Container Terminal Corp.	Taiwan	Terminal operation and stevedoring	$ 3,181,313	$ 3,181,313	323,000,000	47.50	$ 3,449,577	$ 60,242	$ 28,615	Investments in associates
	Yang Ming Line (B.V.I.) Holding Co., Ltd.	British Virgin Islands	Investment, shipping agency, forwarding agency and shipping managers	555,266	555,266	1,757	100.00	16,435,443	710,713	647,382	Subsidiary
	Yang Ming Line B.V.	Netherlands	Investment, shipping agency, forwarding agency and shipping managers	-	-	2,500	100.00	2,937,649	47,268	47,268	Subsidiary
	Kuang Ming Shipping Corp.	Taiwan	Shipping service, shipping agency and forwarding agency	8,927,857	8,927,857	98,882,111	98.88	3,146,665	110,862	106,269	Subsidiary
	Yang Ming Line (Singapore) Pte Ltd	Singapore	Investment, shipping service, sale and purchase of ships, chartering and forwarding agency	(Note B)	(Note B)	(Note D)	(Note D)	-	1,889,530	1,908,486	Subsidiary
	Yang Ming Line Holding Co.	U.S.A.	Investment, shipping agency, forwarding agency and shipping managers	143,860	143,860	13,500	100.00	4,898,857	226,276	226,276	Subsidiary
	All Oceans Transportation Inc.	Republic of Liberia	Shipping agency, forwarding agency and shipping managers	1,500,181	1,500,181	1,000	100.00	1,356,655	177,409)	(48,941)	Subsidiary
	YES Logistics Corp.	Taiwan	Sea and air freight forwarding agency and warehouse operation	1,141,691	1,141,691	115,630,977	96.36	1,644,632	116,952	107,771	Subsidiary
	Hong Ming Terminal & Stevedoring Corp.	Taiwan	Terminal operation and stevedoring	104,261	104,261	10,000,000	100.00	251,297	23,629	23,261	Subsidiary
	Jing Ming Transportation Co., Ltd.	Taiwan	Container transportation	35,844	35,844	8,615,923	50.98	146,825	12,456	6,353	Subsidiary
	Yuan Wang Investment Co., Ltd.	Taiwan	Investment	179,810	179,810	5,211,474	49.75	206,625	14,874	7,399	Investments in associates
	Taiwan Foundation International Pte. Ltd.	Singapore	Investment and subsidiaries management	103,802	103,802	3,400,000	34.00	127,539	12,396	4,029	Investments in associates
Taiwan Navigation Co., Ltd.	Taiwan	Shipping agency, forwarding agency, shipping managers and shipping lines	4,367,004	4,367,004	70,793,243	16.96	3,096,354	1,325,648	297,012	Investments in associates
Yang Ming (Singapore) Pte. Ltd.	Singapore	Shipping agency, forwarding agency, shipping managers and shipping lines	59,950,726 (Note D)	444,930	709,342,500	100.00	149,057,554	3,073,822	3,054,938	Subsidiary

Notes:
A. This is translated into New Taiwan dollars at the exchange rate prevailing at the time of investment acquisition.
B. The original investment amount did not deduct the amount of offsetting the deficit of $3,000,000 thousand and $4,701,339 thousand in May 2021 and May 2017, respectively.
C. The information on investments in mainland China is provided in Table F.
D. The Company's board of directors resolved in April 2025 to proceed a short-form merger of Yang Ming (Singapore) Pte. Ltd. and Yang Ming Line (Singapore) Pte Ltd with the base date on July 31, 2025. The original investment amount of Yang Ming (Singapore) Pte. Ltd. includes the investment amount of $59,505,796 thousand arising from the merger with Yang Ming Line (Singapore) Pte Ltd.

YANG MING MARINE TRANSPORT CORPORATION

TABLE F

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Investor Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 (Note 2)	Investment Flows		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025 (Note 3)	Net Income (Loss) of the Investor	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note E)	Carrying Amount as of December 31, 2025 (Note E)	Accumulated Repatriation of Investment Income as of December 31, 2025
						Outflow	Inflow
Yang Ming Marine Transport Corporation	Huan Ming (Shanghai) International Shipping Agency Co., Ltd. (Note G)	Shipping agency, forwarding agency and shipping managers	US$ 1,000 thousand (Note H)	Indirect investment through Singapore based subsidiary's direct investment in mainland China	$ -	$ -	$ -	$ -	$ 222,513	100.00 (Note I)	$ 222,513	$ 179,929	$ -
	Sino Trans PFS Cold Chain Logistic Co., Ltd. (Note D)	Storage facilities construction and operation as well as providing supporting services related	US$ 46,242 thousand	The Company direct investment in mainland China	23,425 5,209 thousand)	-	-	23,425 5,209 thousand)	(2,071)	6.67	(138)	7,745	-
Yee Logistics Corp.	Yee Logistics (Shanghai) Corp. (Note A)	Forwarding agency	US$ 4,300 thousand	Investor's direct & indirect investment through US based subsidiary's direct investment in mainland China	251,440 8,000 thousand)	-	-	251,440 8,000 thousand)	13,137	96.36	12,659	507,706	-
	Chang Ming Logistics Company Limited (Note B)	Terminal operation and stevedoring, storage, and shipping agency	CNY 144,800 thousand	Investor's direct investment in mainland China	292,330 9,301 thousand)	-	292,330 (US$ 9,301 thousand)	-	-	-	-	-	-
	Sino Trans PFS Cold Chain Logistic Co., Ltd.	Storage facilities construction and operation as well as providing supporting services related	US$ 46,242 thousand	Investor's direct investment in mainland China	193,735 6,164 thousand)	-	-	193,735 6,164 thousand)	(2,071)	12.85	(266)	15,618	-
	Shanghai United Cold Chain Logistics Co., Ltd. (Note F)	Storage facilities construction and operation as well as providing supporting services related	CNY 50,000 thousand	Investor's direct investment in mainland China	44,971 10,000 thousand)	-	-	44,971 10,000 thousand)	555	19.27	107	26,723	-
Company Name	Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025 (Note 3)	Investment Amounts Authorized by Investment Commission, MOEA (Note 3)	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
---	---	---	---
Yang Ming Marine Transport Corporation (Note D)	$ 23,425 (CNY 5,209 thousand)	$ 244,598 (US$ 7,037 thousand) (CNY 5,209 thousand)	$ 195,961,172
Yee Logistics Corp. (Note C)	476,295 (US$ 8,000 thousand) (CNY 50,000 thousand)	476,295 (US$ 8,000 thousand) (CNY 50,000 thousand)	1,140,859

Notes:
A. Yee Logistics Corp. (the subsidiary of the Company) was authorized to invest in Mainland China by the Investment Commission, Ministry of Economic Affairs on June 3, 2004, July 4, 2006, December 26, 2006 and August 31, 2016.
B. Yee Logistics Corp. (the subsidiary of the Company) was authorized to invest in Mainland China by the Investment Commission, Ministry of Economic Affairs on April 11, 2005, August 22, 2006, November 29, 2006 and December 2, 2008. The Company's board of directors resolved to dispose of 100% ownership interest of Chang Ming Logistics Company Limited in December 2024. The disposal procedures are expected to be completed within 12 months, therefore, the assets were reclassified as non-current assets held for sale based on carrying amounts as of the year ended December 31, 2024. The share transfer agreement had been signed in March 2025, and the transfer of shares and the transaction payments were completed in May 2025 and June 2025, respectively.
C. Yee Logistics Corp. (the subsidiary of the Company) was authorized to invest in Mainland China by the Investment Commission, Ministry of Economic Affairs on December 16, 2013.
D. The Company was authorized to invest in Mainland China by the Investment Commission, Ministry of Economic Affairs on August 25, 2021.
E. Calculated by the % ownership of direct or indirect investment.
F. Yee Logistics Corp. (the subsidiary of the Company) was authorized to invest in Mainland China by the Investment Commission, Ministry of Economic Affairs on May 12, 2017.
G. The Company was authorized to invest in mainland China by Investment Commission, Ministry of Economic Affairs on December 25, 2019.
H. The investment was originally made using the unappropriated earnings of Yang Ming Line (Singapore) Pte Ltd. A short-form merger of Yang Ming (Singapore) Pte. Ltd. and Yang Ming Line (Singapore) Pte Ltd was completed on July 31, 2025, and the investee company's paid-in capital was fully absorbed by Yang Ming (Singapore) Pte. Ltd.
I. Yang Ming (Singapore) Pte. Ltd. contributed 51% of capital in terms of cash input, but de facto holds 100% of the equity based on terms stipulated in the joint venture agreement. Yang Ming (Singapore) Pte. Ltd.'s board of directors resolved in December 2025 to acquire the remaining capital of Huan Ming (Shanghai) International Shipping Agency Co., Ltd. Following the settlement of the consideration and completion of the equity transfer in February 2026, Yang Ming (Singapore) Pte. Ltd.'s capital contribution reached 100%.
J. United States dollars and Renminbi Yuan translated into New Taiwan dollars at the exchange rates of US$1=N$31.4300 and CNY1=N$4.4971 as of December 31, 2025.

AI assistant

YMTC — Audit Report / Information 2025

52163_rns_2026-04-27_ef0ae6ef-40a1-4eff-92d2-ddba81f694c0.pdf

Yang Ming Marine Transport Corporation

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Audit of the Percentage-of-Completion

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

YANG MING MARINE TRANSPORT CORPORATION

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

YANG MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Key Sources of Estimation Uncertainty

Revenue recognition

6. CASH AND CASH EQUIVALENTS

Financial assets designated as hedging

7. FINANCIAL INSTRUMENTS AT FVTPL

8. FINANCIAL ASSETS AT FVTOCI - NON-CURRENT

9. FINANCIAL ASSETS AT AMORTIZED COST

10. TRADE RECEIVABLES

11. FINANCE LEASE RECEIVABLES

12. SHIPPING FUEL

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. PROPERTY, PLANT AND EQUIPMENT

15. LEASE ARRANGEMENTS

Financial liabilities designated as hedging

16. INVESTMENT PROPERTIES

17. BONDS PAYABLE

Secured domestic bonds

18. TRADE PAYABLES

19. OTHER PAYABLES

20. PROVISIONS

21. RETIREMENT BENEFIT PLANS

22. EQUITY

24. NET PROFIT

25. INCOME TAXES

26. EARNINGS PER SHARE

Net Profit for the Year

Weighted Average Number of Ordinary Shares Outstanding (In Thousands of Shares)

27. CASH FLOW INFORMATION

Changes in Liabilities Arising from Financing Activities

28. CAPITAL MANAGEMENT

29. FINANCIAL INSTRUMENTS

Financial liabilities

Hedge accounting

Financial credit risk

3) Liquidity risk

30. TRANSACTIONS WITH RELATED PARTIES

31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

34. SEPARATELY DISCLOSED ITEMS

YANG MING MARINE TRANSPORT CORPORATION

YANG MING MARINE TRANSPORT CORPORATION

YANG MING MARINE TRANSPORT CORPORATION

YANG MING MARINE TRANSPORT CORPORATION

YANG MING MARINE TRANSPORT CORPORATION

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