U Ming Marine Transport : Financial Statements for the Three Months Ended March 31, 2022 and 2021

U-Ming Marine Transport Corporation and

Subsidiaries

Consolidated Financial Statements for the

Three Months Ended March 31, 2022 and 2021

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

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders

U-Ming Marine Transport Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of U-Ming Marine Transport Corporation (the "Company") and its subsidiaries (collectively, the "Group") as of March 31, 2022 and 2021, the related consolidated statements of comprehensive income for the three months ended March 31, 2022 and 2021, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies "(collectively referred to as the consolidated financial statements)". Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2022 and 2021, the unreviewed assets amounted to NT$11,232,589 thousand (US$392,405 thousand) and NT$9,183,261 thousand (US$321,824 thousand), respectively, (16.63% and 15.01% of the consolidated assets, respectively), and the unreviewed liabilities amounted to NT$1,569,489 thousand (US$54,829 thousand) and NT$452,710 thousand (US$15,865 thousand), respectively, (4.07% and 1.21% of the consolidated liabilities, respectively). The unreviewed comprehensive income (loss) for the three months ended March 31, 2022 and 2021 were NT$(42,278) thousand (US$(1,477) thousand) and NT$(122,046) thousand (US$(4,277) thousand), respectively, representing (1.35%) and (24.40%) of the consolidated comprehensive income, respectively.

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As stated in Note 12 to the consolidated financial statements, the investments accounted for using the equity method (including losses offset against long-term receivables - related parties) as of March 31, 2022 and 2021 were NT$4,090,403 thousand (US$142,896 thousand) and NT$3,503,013 thousand (US$122,762 thousand), respectively, and the related investment income (loss) for the three months ended March 31, 2022 and 2021 were NT$61,958 thousand (US$2,164 thousand) and NT$34,526 thousand (US$1,210 thousand), respectively. These abovementioned amounts of the investments accounted for using the equity method and the related investees' information were based on unreviewed financial statements. Further, as disclosed in Note 29 to the consolidated financial statements, other information about the non-significant subsidiaries, associates and joint ventures accounted for using the equity method as stated above were also not reviewed.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and the financial statements of the investments accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the consolidated financial position of the Group as of March 31, 2022 and 2021, its consolidated financial performance for the three months ended March 31, 2022 and 2021, and its consolidated cash flows for the three months ended March 31, 2022 and 2021 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

April 27, 2022

Notice to Readers

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

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U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

			March 31, 2022						December 31, 2021				March 31, 2021
ASSETS			Amount	%					Amount	%					Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 7)	$	16,276,520	24		$	13,927,841	22	$	13,248,875	22
Financial assets at fair value through profit or loss (Notes 8)			1,499,168		2					1,546,321		2				1,653,976		3
Financial assets at fair value through other comprehensive income (Notes 9 and 25)			7,528,742		11					6,825,038		11				7,028,877		12
Financial assets at amortized cost (Note 25)			242,450		-				372,312		1				161,629		-
Contract assets (Note 19 and 24)			289,526		1					301,821		1				275,269		-
Trade receivables from unrelated parties (Note 10)			339,229		1					448,067		1				309,663		1
Trade receivables from related parties (Notes 10 and 24)			50,713		-				73,595	-				85,366	-
Other receivables (Note 24)			86,444		-				87,842	-				92,508	-
Fuel inventory			773,209		1					668,734		1				515,115		1
Other current assets (Note 24)			199,456		-				140,069		-				186,836		-
Total current assets			27,285,457	40					24,391,640	39				23,558,114	39
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income (Note 9)			2,413,682		4					2,265,037		4				2,217,881		4
Financial assets at amortized cost			498,101		1					598,769		1				766,426		1
Investments accounted for using the equity method (Note 12)			4,234,068		6					3,993,021		6				3,591,580		6
Property, plant and equipment (Notes 13, 25 and 26)			28,996,128	43					27,255,637	44				28,676,673	47
Intangible assets			66,789		-				73,646	-				90,222	-
Deferred tax assets			4,904	-				5,216	-				6,803	-
Prepayments for equipment (Note 13 and 26)			3,391,449		5					3,048,534		5				1,446,913		2
Refundable deposits (Notes 24 and 25)			80,802		-				59,956	-				69,184	-
Long-term receivables from related parties (Note 24)			556,591		1					587,725		1				742,176		1
Total non-current assets			40,242,514	60					37,887,541	61				37,607,858	61
TOTAL	$	67,527,971	100		$	62,279,181	100	$	61,165,972	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 15 and 25)	$	5,928,000		9		$	3,903,000		6	$	6,021,000		10
Short-term bills payable (Notes 15 and 25)			7,633,004		11					6,731,467		11				8,113,847		13
Financial liabilities at fair value through profit or loss (Notes 8)			42,851		-				153,086		-				243,043		-
Trade payables (Note 24)			230,270		-				184,788		-				252,744		1
Other payables (Note 16)			1,120,734		2					1,095,145		2				790,272		1
Current tax liabilities			1,189	-				1,202	-				46,678	-
Current portion of long-term borrowings (Notes 15 and 25)			3,777,746		6					5,595,515		9				3,115,953		5
Other current liabilities (Note 24)			377,942		-				274,220		1				540,954		1
Total current liabilities			19,111,736	28					17,938,423	29				19,124,491	31
NON-CURRENT LIABILITIES
Bank loans (Notes 15 and 25)			19,123,172	29					18,180,197	29				17,950,633	30
Deferred tax liabilities			194,578		-				187,334		-				174,376		-
Deferred revenue			-	-				-	-				106,680		-
Net defined benefit liabilities			111,885		-				114,509		-				134,353		-
Total non-current liabilities			19,429,635	29					18,482,040	29				18,366,042	30
Total liabilities			38,541,371	57					36,420,463	58				37,490,533	61
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 18)
Common share capital			8,450,557		13					8,450,557		14				8,450,557		14
Capital surplus			115,148		-				115,150		-				115,164		-
Retained earnings
Legal reserve			6,964,052		10					6,964,052		11				6,876,575		11
Special reserve			1,022,797		2					1,022,797		2				-	-
Unappropriated earnings			12,379,561	18					11,534,057	18				9,098,995		15
Total retained earnings			20,366,410	30					19,520,906	31				15,975,570	26
Other equity			54,485		-				(2,227,895)	(3)				(865,852)	(1)
Total equity			28,986,600	43					25,858,718	42				23,675,439	39
TOTAL	$	67,527,971	100		$	62,279,181	100	$	61,165,972	100

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

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U-MING MARINE TRANSPORT CORPORATION AND SUBSIDIARIES

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

			March 31, 2022							December 31, 2021				March 31, 2021
ASSETS			Amount	%						Amount	%					Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 7)	$	568,612		24		$	503,173		22	$	463,777		22
Financial assets at fair value through profit or loss (Notes 8)			52,373	2					55,865	2				57,963		3
Financial assets at fair value through other comprehensive income (Notes 9 and 25)			263,013		11					246,569		11				246,325		12
Financial assets at amortized cost (Note 25)			8,470	-				13,451	1				6,190		-
Contract assets (Note 19 and 24)			10,114	1					10,904	1				9,647		-
Trade receivables from unrelated parties (Note 10)			11,851	1					16,187	1				10,852		1
Trade receivables from related parties (Notes 10 and 24)			1,771	-				2,659	-				2,992		-
Other receivables (Note 24)			3,020	-				3,173	-				3,242		-
Fuel inventory			27,012	1					24,159	1				18,052		1
Other current assets (Note 24)			6,968	-				5,060	-				6,547		-
Total current assets			953,204		40					881,200		39				825,587		39
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income (Note 9)			84,321	4					81,829	4				77,725		4
Financial assets at amortized cost			17,401	1					21,632	1				26,859		1
Investments accounted for using the equity method (Note 12)			147,915		6					144,257		6				125,866		6
Property, plant and equipment (Notes 13, 25 and 26)			1,012,965		43					984,669		44				1,004,965		47
Intangible assets			2,333	-				2,661	-				3,162		-
Deferred tax assets			171	-				188	-				238		-
Prepayments for equipment (Note 13 and 26)			118,479		5					110,135		5				50,707		2
Refundable deposits (Notes 24 and 25)			2,823	-				2,166	-				2,424		-
Long-term receivables from related parties (Note 24)			19,444	1					21,233	1				26,009		1
Total non-current assets			1,405,852		60					1,368,770		61				1,317,955		61
TOTAL	$	2,359,056		100		$	2,249,970		100	$	2,143,542		100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 15 and 25)	$	207,092		9		$	141,004		6	$	211,004		10
Short-term bills payable (Notes 15 and 25)			266,655		11					243,189		11				284,347		13
Financial liabilities at fair value through profit or loss (Notes 8)			1,497	-				5,531	-				8,517		-
Trade payables (Note 24)			8,044	-				6,676	-				8,857		1
Other payables (Note 16)			39,152	2					39,564	2				27,695		1
Current tax liabilities			42	-				43	-				1,636		-
Current portion of long-term borrowings (Notes 15 and 25)			131,974		6					202,150		9				109,198		5
Other current liabilities (Note 24)			13,203	-				9,907	1				18,958		1
Total current liabilities			667,659		28					648,064		29				670,212		31
NON-CURRENT LIABILITIES
Bank loans (Notes 15 and 25)			668,058		29					656,799		29				629,074		30
Deferred tax liabilities			6,797	-				6,768	-				6,111		-
Deferred revenue			-	-				-	-				3,739		-
Net defined benefit liabilities			3,909	-				4,137	-				4,708		-
Total non-current liabilities			678,764		29					667,704		29				643,632		30
Total liabilities			1,346,423		57					1,315,768		58				1,313,844		61
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 18)
Common share capital			295,216		13					305,295		14				296,147		14
Capital surplus			4,023	-				4,160	-				4,036		-
Retained earnings
Legal reserve			243,286		10					251,591		11				240,987		11
Special reserve			35,731	2					36,951	2				-		-
Unappropriated earnings			432,474		18					416,693	18				318,871		15
Total retained earnings			711,491		30					705,235		31				559,858		26
Other equity			1,903	-				(80,488)	(3)				(30,343)	(1)
Total equity			1,012,633		43					934,202		42				829,698		39
TOTAL	$	2,359,056		100			$	2,249,970		100	$	2,143,542		100

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

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