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1
WISDOM MARINE LINES CO., LIMITED (CAYMAN)
AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITORS’ REPORT
31 DECEMBER 2024 AND 2023
Registered: Wind ward 3, Regatta Office Park, PO Box 1350, Grand Cay m a n
KY1-1108, Cayman Islands
Address: 7F., No. 237, Sec. 2, Fushing S. Rd., Taipei City, Taiwa n
Telephone: 886-2-2755-2637
The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict
between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese
language financial statements shall prevail.
2
TABLE OF CONTENTS
Contents Page
Cover page 1
Table of contents 2
Statement by directors 3
Independent auditors’ report 4-7
Consolidated balance sheets 8-9
Consolidated statements of comprehensive income 10
Consolidated statements of changes in equity 11
Consolidated statements of cash flows 12
Notes to the consolidated financial statements
1. History and organization 13
2. Date and procedures of authorization of financial statements for issue 13
3. Newly issued or revised standards and interpretations 13-16
4. Summary of significant accounting policies 16-45
5. Significant accounting judgments, estimates and assumptions 46-48
6. Contents of significant accounts 48-76
7. Related party transactions 76-82
8. Pledged assets 82
9. Significant commitments and contingencies 82-83
10. Losses due to major disasters 84
11. Significant subsequent events 84
12. Others 84-97
13. Other disclosures 97-98
14. Segment information 98-99
3
STATEMENT BY DIRECTORS
This statement specifies the responsibility of the Board of Directors in compiling the Consolidated
Financial Report of Wisdom Marine Lines Co., Limited (Cayman) (the “Company”) and its
subsidiaries (together the “Group”).
In addition to the disclosure of accounting information, a complete consolidated financial report shall
include the roles of each segment of the Group and their future development, so that the readers of
the Financial Report can fully understand the future development and potential risk of the Group. In
respect of the full and complete disclosure of accounting procedures and financial information, the
Board has responsibility to review the Group’s strategies, important business plans, and risk
management policies, to set operational targets, and to monitor the results of operations, in order to
comply with relevant regulations, protect company interests, and avoid potential fraud within the
Group. We have provided the relevant financial information for every financial report year, and
disclosed the consolidated assets, liabilities, financial structure and operating performance in a
truthful, fair and objective manner. Our disclosure is based on the principles of consistency and going
concern assumption, and we make fair judgments and estimations regarding accrual items at the end
of each year, in order to prevent erroneous information in the consolidated financial report.
The Board of Directors and management reviewed the consolidated financial report of the Company
and its subsidiaries for 2024 and 2023 on 24 February 2025. The consolidated financial report have
been prepared in accordance with International Financial Reporting Standards, International
Accounting Standards and Interpretations developed by the International Financial Reporting
Interpretations Committee or the former Standing Interpretations Committee, and give a true and fair
view of the consolidated financial position of the Group as at 31 December 2024 and 2023 and the
consolidated results and changes in equity of the Group for the years then ended, and there is no
fraudulent or concealed information.
The Board of Directors has, on the date of this statement, authorized these financial statements for
issue.
Wisdom Marine Lines Co., Limited
Director
24 February 2025
4
Independent Auditors’ Report
To the Board of Directors and Stockholders of
Wisdom Marine Lines Co., Limited (Cayman)
Opinion
We have audited the accompanying consolidated balance sheets of Wisdom Marine Lines Co.,
Limited (Cayman) (the “Company”) and its subsidiaries (together the “Group”) as at 31 December
2024 and 2023, and the related consolidated statements of comprehensive income, changes in equity
and cash flows for the years ended 31 December 2024 and 2023, and notes to the consolidated
financial statements, including the summary of material accounting policies (together “the
consolidated financial statements”).
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of the Company and its subsidiaries as at 31 December
2024 and 2023, and their consolidated financial performance and cash flows for the years ended 31
December 2024 and 2023, in conformity with the requirements of the International Financial
Reporting Standards, International Accounting Standards, Interpretations developed by the
International Financial Reporting Interpretations Committee or the former Standing Interpretations
Committee.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of
Financial Statements by 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 Consolidated Financial Statements section of our report. We are
independent of the Company and its subsidiaries in accordance with the Norm of Professional Ethics
for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our
other ethical responsibilities in accordance with the Norm. 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 2024 consolidated financial statements. These matters were addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
5
Revenue recognition
Hire revenues amounted to $627,027,305 for the year ended 31 December 2024, accounting for 99%
of operating revenues, which is significant to the consolidated financial statements. Therefore, we
have determined the validity of hire revenue as a key audit matter. The audit procedures we conducted
regarding the hire revenue recognition included but not limited to the following: understanding the
design and implementation of internal controls with regard to hire revenue recognition in order to
design relevant internal control audit procedures in response to the validity of hire revenue so as to
verify the effectiveness of the design and implementation of the Group's internal controls; selecting
samples from the population of hire revenues to perform tests of control and tests of details;
examining lease contracts, debit notes, bank statements and remittances to ensure whether recognition
of hire revenues are in accordance with contract terms and remitters are consistent with the
counterparty of the lease contracts, performing confirmations of lease contracts to verify existence of
lessees and validity of contract terms; analyzing variances in hire revenues and fluctuations in gross
margin and assessing the reasonable. We also evaluated the disclosure regarding revenue recognition
in Notes 4 and 6 of the consolidated financial statements.
Impairment of property, plant and equipment
As at 31 December 2024, the amount of the Group’s property, plant and equipment was
$2,295,049,049, which accounted for 82% of total assets. The management assessed if there is any
indication that an asset may be impaired on balance sheet date. If there is any indication that an asset
may be impaired, the Group should evaluate the recoverable amount of the cash-generating-unit
(CGU), to which the asset belongs. The property, plant and equipment of the Group mainly consists
of vessel equipment. The subsidiaries of the Company took the one-vessel-one-company strategy to
manage vessels, and the main CGU for each subsidiary is their vessels. With the view that the amount
of property, plant and equipment being material and the calculation of recoverable amount involving
numerous assumptions and estimates, we have determined the impairment of property, plant and
equipment as a key audit matter. The audit procedures we conducted regarding the impairment of
property, plant and equipment included but not limited to the following: evaluating the
appropriateness of the accounting policy for impairment of property, plant and equipment; inspecting
the impairment evaluation report provided by the Group and assessing the reasonableness of
managements identification of indicators of impairment and the assumptions used, including
identification of CGU, estimation of cash flows and discount rate. We also evaluated the disclosure
regarding property, plant and equipment in Notes 4, 5 and 6 of the consolidated financial statements.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with the requirements of the International Financial Reporting Standards,
International Accounting Standards, Interpretations developed by the International Financial
Reporting Interpretations Committee and Interpretations developed by the Standing Interpretations
Committee and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether
due to fraud or error.
6
In preparing the consolidated financial statements, management is responsible for assessing the ability
to continue as a going concern of the Company and its subsidiaries, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company and its subsidiaries or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance, including audit committee, are responsible for overseeing the
financial reporting process of the Company and its subsidiaries.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated
financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we
exercise professional judgment and professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the consolidated 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.
2. 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 internal control of the Company and its subsidiaries.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
4. 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 ability to continue as a going concern of the
Company and its subsidiaries. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditors’ report to the related disclosures in the consolidated 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 and its subsidiaries to cease to continue as a going concern.
7
5. Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the accompanying notes, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company and its subsidiaries to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and
performance of the group 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 2024 consolidated financial statements 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.
Lu, Chian Uen
Liu, Jung Chin
Ernst & Young, Taiwan
24 February 2025
Notice to Readers
The accompanying consolidated financial statements are intended only to present the financial position, results of operations 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 consolidated financial statements are those generally accepted and
applied in the Republic of China.
Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by
those who are not informed about the accounting principles or the Standards on Auditing of the Republic of China, and their applications
in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use
of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
English Translation of Consolidated Financial Statements Originally Issued in Chinese

| Notes | 31 December 2024 31 December 2023 |
ASSETS |  |  |
Cash and cash equivalents | 6.(1) | $135,150,365 | $116,946,577
Current financial assets at fair value through profit or loss | 6.(2) | 822,100 | 902,700
Current financial assets at fair value through |  |  |
other comprehensive income | 6.(3) & 8 | 9,717,541 | 11,864,671
Accounts receivable, net | 6.(4) & 6.(16) | 4,832,273 | 4,570,206
Accounts receivable due from related parties, net | 6.(4), 6.(16) & 7 | 283,147 | 299,989
Other receivables | 7 | 6,619,288 | 2,108,709
Inventories | 6.(5) | 2,934,774 | 3,689,083
Prepayments | 7 | 3,834,012 | 3,682,733
Other current financial assets | 6.(1) & 8 | 36,491,161 | 51,807,798
Other current assets, other | 7 | 34,765,557 | 16,991,750
Total current assets |  | 235,450,218 | 212,864,216
Investments accounted for using the equity method | 6.(6) | 9,902,886 | 11,905,112
Property, plant and equipment | 6.(7), 7 & 8 | 2,295,049,049 | 2,367,805,863
Right-of-use assets | 6.(12) & 7 | 177,747,906 | 186,358,566
Investment property, net | 6.(8) & 8 | 2,194,490 | 2,352,002
Deferred tax assets | 6.(20) | 10,997 | 32,351
Guarantee deposits paid |  | 12,819,612 | 13,811,397
Net defined benefit asset, non-current | 6.(13) | 36,720 | 6,959
Other non-current assets | 6.(9) | 49,993,014 | 64,309,667
Total non-current assets |  | 2,547,754,674 | 2,646,581,917
TOTAL ASSETS |  | $2,783,204,892 | $2,859,446,133

The accompanying notes are an integral part of the consolidated financial statements.
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
31 DECEMBER 2024 AND 2023
(All Amounts Expressed in US Dollars)
8
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONT’D)
(All Amounts Expressed in US Dollars)

| Note | 31 December 2024 31 December 2023 |
LIABILITIES |  |  |
Short-term borrowings | 6.(10) | $21,470,519 | $30,527,226
Accounts payable |  | 6,017,870 | 5,758,865
Accounts payable to related parties | 7 | 45,982 | -
Other accrued expenses | 7 | 22,897,429 | 27,386,743
Advance receipts |  | 12,816,169 | 14,594,007
Other current liabilities, other | 7 | 5,028,447 | 2,481,400
|  | 68,276,416 | 80,748,241
Current lease liabilities | 6.(12) & 7 | 28,488,199 | 13,391,453
Bonds payable, current portion | 6.(11) | - | 45,059,803
Long-term borrowings, current portion | 6.(10) | 173,686,399 | 214,728,297
Long-term accounts payable, current portion | 6.(12) | 7,735,490 | 4,846,444
Long-term accounts payable to related parties, current portion | 6.(12) & 7 | 555,627 | 818,273
|  | 210,465,715 | 278,844,270
Total current liabilities |  | 278,742,131 | 359,592,511
Bonds payable | 6.(11) | 30,197,916 | -
Long-term borrowings, non-current portion | 6.(10) | 626,205,475 | 747,686,428
Deferred tax liabilities | 6.(20) | 24,759 | 13,774
Non-current lease liabilities | 6.(12) & 7 | 93,931,608 | 130,152,801
Long-term accounts payable, non-current portion | 6.(12) | 63,199,737 | 32,514,688
Long-term accounts payable to related parties, non-current portion | 6.(12) & 7 | 92,711,038 | 124,063,266
Guarantee deposits received |  | 183 | 195
Total non-current liabilities |  | 906,270,716 | 1,034,431,152
TOTAL LIABILITIES |  | 1,185,012,847 | 1,394,023,663
EQUITY | 6.(14) |  |
Common stock |  | 238,739,686 | 238,739,686
Capital surplus |  | 1,237,415 | 1,237,415
Legal reserve |  | 6,960 | 6,960
Unappropriated retained earnings |  | 1,089,832,443 | 965,322,804
Exchange differences on translation of foreign financial statements |  | 268,608,077 | 260,505,757
Unrealized gains (losses) from financial assets measured |  |  |
at fair value through other comprehensive income |  | (232,536) | (390,152)
TOTAL EQUITY |  | 1,598,192,045 | 1,465,422,470
TOTAL LIABILITIES AND EQUITY |  | $2,783,204,892 | $2,859,446,133

The accompanying notes are an integral part of the consolidated financial statements.
31 DECEMBER 2024 AND 2023
9
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All Amounts Expressed in US Dollars)

| Notes | 2024 | 2023
Operating revenue | 6.(15) & 7 | $634,431,170 | $545,530,289
Operating costs | 6.(17) & 7 | 417,680,331 | 428,615,293
Gross profit from operations |  | 216,750,839 | 116,914,996
Operating expenses |  |  |
Administrative expenses | 6.(17) & 7 | 5,149,957 | 5,046,214
Expected credit losses | 6.(16) | 280,486 | 286,890
Total operating expenses |  | 5,430,443 | 5,333,104
Net operating income |  | 211,320,396 | 111,581,892
Non-operating income and expenses |  |  |
Interest income | 6.(18) | 7,239,525 | 6,859,227
Other income, others | 6.(18) & 7 | 320,167 | 1,078,502
Gains on disposal of property, plant and equipment | 6.(7), 6.(18) & 7 | 31,267,595 | 53,876,999
Foreign exchange gains | 6.(18) | 6,216,483 | 3,929,478
Miscellaneous expenses | 6.(18) | (1,208,412) | (2,452,822)
Losses on disposals of investments | 6.(18) | (11,418) | (1,402)
Losses from lease modification | 6.(18) | - | (1,358)
(Losses) gains on financial assets (liabilities) |  |  |
at fair value through profit or loss | 6.(2) & 6.(18) | (26,743) | 713,053
Other impairment loss | 6.(6) & 6.(18) | (1,712,900) | -
Interest expense | 6.(7), 6.(11), 6.(18) & 7 | (61,525,898) | (68,757,353)
Share of loss of associates and joint ventures accounted |  |  |
for using the equity method | 6.(6) | (3,347,544) | (1,072,279)
Total non-operating income and expenses |  | (22,789,145) | (5,827,955)
Profit from continuing operations before tax |  | 188,531,251 | 105,753,937
Income tax expense | 6.(20) | 689,372 | 787,219
Net income |  | 187,841,879 | 104,966,718
Other comprehensive income (loss): | 6.(19) |  |
Components of other comprehensive income (loss) that will not be |  |  |
reclassified to profit or loss |  |  |
Remeasurement of defined benefit plans |  | 25,491 | 177,301
Income tax expense (income) relating to items that will not be reclassified |  | 5,098 | (1,001)
Components of other comprehensive income (loss) that will be |  |  |
reclassified to profit or loss |  |  |
Exchange differences on translation of foreign financial statements |  | 8,102,320 | (15,346,026)
Unrealized gains from investments in debt instruments |  |  |
measured at fair value through other comprehensive income |  | 157,616 | 345,837
Other comprehensive income (loss) |  | 8,280,329 | (14,821,887)
Total comprehensive income |  | $196,122,208 | $90,144,831
Net income attributable to: |  |  |
Net income attributable to owners of parent |  | $187,841,879 | $104,966,718
Comprehensive income attributable to: |  |  |
Comprehensive income attributable to owners of parent |  | $196,122,208 | $90,144,831
Basic earnings per share | 6.(21) | $0.25 | $0.14
Diluted earnings per share | 6.(21) | $0.25 | $0.14

The accompanying notes are an integral part of the consolidated financial statements.
FOR THE YEARS ENDED 31 DECEMBER 2024 AND 2023
10
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED 31 DECEMBER 2024 AND 2023
(All Amounts Expressed in US Dollars)

|  |  | Total retained earnings |  | Other components of equity |  |
|  |  |  |  |  | Unrealized gains |
|  |  |  |  | (losses) on financial |  |
|  |  |  |  | Exchange differences | assets measured at |
|  |  |  |  | on translation of | fair value through |
|  |  |  | Unappropriated | foreign financial | other comprehensive |
| Common stock | Capital surplus | Legal reserve | retained earnings | statements | income | Total
Balance, 1 January 2023 | $238,739,686 | $1,237,415 | $6,960 | $1,017,955,338 | $275,851,783 | $(735,989) | $1,533,055,193
Appropriation and distribution of retained earnings: |  |  |  |  |  |  |
Cash dividends of ordinary share | - | - | - | (157,777,554) | - | - | (157,777,554)
Profit for the year ended 31 December 2023 | - | - | - | 104,966,718 | - | - | 104,966,718
Other comprehensive income (loss) for the year ended 31 December 2023 | - | - | - | 178,302 | (15,346,026) | 345,837 | (14,821,887)
Total comprehensive income (loss) for the year ended 31 December 2023 | - | - | - | 105,145,020 | (15,346,026) | 345,837 | 90,144,831
Balance, 31 December 2023 | $238,739,686 | $1,237,415 | $6,960 | $965,322,804 | $260,505,757 | $(390,152) | $1,465,422,470
Balance, 1 January 2024 | $238,739,686 | $1,237,415 | $6,960 | $965,322,804 | $260,505,757 | $(390,152) | $1,465,422,470
Appropriation and distribution of retained earnings: |  |  |  |  |  |  |
Cash dividends of ordinary share | - | - | - | (63,352,633) | - | - | (63,352,633)
Profit for the year ended 31 December 2024 | - | - | - | 187,841,879 | - | - | 187,841,879
Other comprehensive income (loss) for the year ended 31 December 2024 | - | - | - | 20,393 | 8,102,320 | 157,616 | 8,280,329
Total comprehensive income (loss) for the year ended 31 December 2024 | - | - | - | 187,862,272 | 8,102,320 | 157,616 | 196,122,208
Balance, 31 December 2024 | $238,739,686 | $1,237,415 | $6,960 | $1,089,832,443 | $268,608,077 | $(232,536) | $1,598,192,045

The accompanying notes are an integral part of the consolidated financial statements.
11
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED 31 DECEMBER 2024 AND 2023
(All Amounts Expressed in US Dollars)

| 2024 | 2023
CASH FLOWS FROM OPERATING ACTIVITIES |  |
Profit from continuing operations before tax | $188,531,251 | $105,753,937
Adjustments to reconcile net income before tax: |  |
Depreciation expense | 152,288,779 | 152,965,877
Amortization expense | 19,318 | 17,489
Expected credit losses | 280,486 | 286,890
Net losses on financial assets or liabilities at fair value through profit or loss | 94,693 | 8,000
Interest expense | 61,525,898 | 68,757,353
Interest income | (7,239,525) | (6,859,227)
Effect of exchange rate changes of bonds payable | (2,701,131) | 16,583
Share of loss of associates and joint ventures accounted for using the equity method | 3,347,544 | 1,072,279
Gains on disposals of property, plant and equipment | (31,267,595) | (53,876,999)
Losses on disposals of investments | 11,418 | 1,402
Impairment loss on non-financial assets | 1,712,900 | -
Unrealized foreign exchange (gain) loss | (4,472,560) | 1,961,419
Amortization of financial assets at fair value through other comprehensive income | (64,320) | (134,582)
Other adjustments | 165,751 | (4,717,490)
Changes in operating assets and liabilities: |  |
Decrease (increase) in accounts receivable | (542,553) | (139,978)
Decrease (increase) in accounts receivable-related parties | 16,842 | 19,023
Decrease (increase) in other receivables | (561,727) | 153,687
Decrease (increase) in inventories | 683,180 | 2,715,334
Decrease (increase) in prepayments | (422,110) | 3,912,452
Decrease (increase) in other current assets | (17,773,807) | 8,194,292
Increase (decrease) in accounts payable | 259,005 | (2,244,012)
Increase (decrease) in accounts payable to related parties | 45,982 | (508,700)
Increase (decrease) in other accrued expenses | 1,245,031 | (6,559,453)
Increase (decrease) in advance receipts | (1,778,210) | (1,450,414)
Increase (decrease) in other current liabilities | (628,150) | (690,364)
Cash generated from operations | 342,776,390 | 268,654,798
Interest received | 6,007,940 | 7,150,287
Interest paid | (61,653,377) | (68,847,880)
Income taxes paid | (773,762) | (662,974)
Net cash flows from operating activities | 286,357,191 | 206,294,231
CASH FLOWS FROM INVESTING ACTIVITIES |  |
Acquisition of financial assets at fair value through other comprehensive income | - | (582,886)
Proceeds from disposals of financial assets |  |
at fair value through other comprehensive income | 2,295,825 | 2,054,691
Proceeds from disposals of financial assets for hedging | - | 417,664
Acquisition of investments accounted for using the equity method | (3,710,210) | (2,605,439)
Acquisition of property, plant and equipment | (23,279,945) | (22,097,733)
Proceeds from disposals of property, plant and equipment | 84,406,585 | 201,581,411
Decrease (increase) in guarantee deposits paid | (1,285) | (224,487)
Acquisition of right-of-use assets | (1,403,661) | (862,997)
Decrease (increase) in other financial assets | 15,316,637 | (1,994,986)
Decrease (increase) in other non-current assets (prepayments for vessels) | (116,098,901) | (189,486,670)
Net cash (used in) flows from investing activities | (42,474,955) | (13,801,432)
CASH FLOWS FROM FINANCING ACTIVITIES |  |
Increase in short-term borrowings | 31,362,374 | 57,338,260
Decrease in short-term borrowings | (39,400,509) | (52,047,609)
Proceeds from issuing bonds | 30,533,282 | -
Repayments of bonds | (42,786,531) | -
Increase in long-term borrowings | 417,659,431 | 626,566,888
Decrease in long-term borrowings | (536,715,780) | (747,084,778)
Increase (decrease) in guarantee deposits received | - | 193
Repayments of the principal portion of lease liabilities | (12,956,121) | (18,839,655)
Increase in other financial liabilities | 49,000,000 | 26,621,352
Decrease in other financial liabilities | (43,337,207) | (18,655,476)
Distribution of cash dividend | (63,052,460) | (157,845,660)
Net cash used in financing activities | (209,693,521) | (283,946,485)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (15,984,927) | 43,415
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 18,203,788 | (91,410,271)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 116,946,577 | 208,356,848
CASH AND CASH EQUIVALENTS, END OF PERIOD | $135,150,365 | $116,946,577

The accompanying notes are an integral part of the consolidated financial statement.
12
13
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2024 AND 2023
(In US Dollars Unless Stated Otherwise)
1. History and organization
Wisdom Marine Lines Co., Limited (Cayman) (the “Company”) was incorporated in the Cayman
Islands on 21 October 2008 as a tax-exempt company with limited liability under the Companies
Act, Cap 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The Company
and its subsidiaries (the “Group”) primarily provide marine car go transportation services, service
related to the maintenance, vessel leasing, and shipping agency and management services. On 1
December 2010, the Company was approved and listed on Taiwan Stock Exchange (TWSE).
The Company’s ultimate parent company: None.
2. Date and procedures of authorization of financial statements for issue
The consolidated financial statements were authorized for issue by the board of directors on 24
February 2025.
3. Newly issued or revised standards and interpretations
(1) The Group applied for the first time International Financial Reporting Standards, International
Accounting Standards, and Interpretations issued, revised or amended which are recognized
by Financial Supervisory Commission (“FSC”) and become effective for annual periods
beginning on or after 1 January 2024. The adoption of these new standards and amendments
had no material impact on the Group.
(2) The following standards or interpretations issued by IASB are not yet effective:
A. IFRS 10“Consolidated Financial Statements” and IAS 28“Investments in Associates and
Joint Ventures”-Sale or Contribution of Assets between an Investor and its Associate or
Joint Ventures
The amendments address the inconsistency between the requirements in IFRS 10
Consolidated Financial Statements and IAS 28 Investments in Associates and Joint
Ventures, in dealing with the loss of control of a subsidiary that is contributed to an
associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of
non-monetary assets to an associate or a joint venture to the extent of the interest
attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires
full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended
so that the gain or loss resulting from the sale or contribution of assets that constitute a
business as defined in IFRS 3 between an investor and its associate or joint venture is
recognized in full.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
14
IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution
of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor
and its associate or joint venture is recognized only to the extent of the unrelated investors’
interests in the associate or joint venture.
B. Lack of Exchangeability – Amendments to IAS 21
These amendments specify whether a currency is exchangeable into another currency and,
when it is not, to determining the exchange rate to use and the disclosures to provide.
C. IFRS 18 “Presentation and Disclosure in Financial Statements”
IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as
below:
(a) Improved comparability in the statement of profit or loss (income statement)
IFRS 18 requires entities to classify all income and expenses within their statement of
profit or loss into one of five categories: operating; investing; financing; income taxes;
and discontinued operations. The first three categories are new, to improve the
structure of the income statement, and requires all entities to provide new defined
subtotals, including operating profit or loss. The improved structure and new subtotals
will give investors a consistent starting point for analyzing entities’ performance and
make it easier to compare entities.
(b) Enhanced transparency of management-defined performance measures
IFRS 18 requires entities to disclose explanations of those entity-specific measures
that are related to the income statement, referred to as management-defined
performance measures.
(c) Useful grouping of information in the financial statements
IFRS 18 sets out enhanced guidance on how to organize information and whether to
provide it in the primary financial statements or in the notes. The changes are expected
to provide more detailed and useful information. IFRS 18 also requires entities to
provide more transparency about operating expenses, helping investors to find and
understand the information they need.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
15
D. Disclosure Initiative – Subsidiaries without Public Accountability: Disclos ures (IFRS 19)
This standard permits subsidiaries without public accountability to provide reduced
disclosures when applying IFRS Accounting Standards in their financial statements. IFRS
19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for
subsidiaries that elect to apply it.
E. Amendments to the Classification and Measurement of Financial Instruments –
Amendments to IFRS 9 and IFRS 7
The amendments include:
(a) Clarify that a financial liability is derecognised on the settlement date and describe
the accounting treatment for settlement of financial liabilities using an electronic
payment system before the settlement date.
(b) Clarify how to assess the contractual cash flow characteristics of financial assets that
include environmental, social and governance (ESG)-linked features and other
similar contingent features.
(c) Clarify the treatment of non-recourse assets and contractually linked instruments.
(d) Require additional disclosures in IFRS 7 for financial assets and liabilities with
contractual terms that reference a contingent event (including those that are ESG-
linked), and equity instruments classified at fair value through other comprehensive
income.
F. Annual Improvements to IFRS Accounting Standards – Volume 11
(a) Amendments to IFRS 1
The amendments mainly improve the consistency in wording between first-time
adoption of IFRS and requirements for hedge accounting in IFRS 9.
(b) Amendments to IFRS 7
The amendments update an obsolete cross-reference relating to gain or loss on
derecognition.
(c) Amendments to Guidance on implementing IFRS 7
The amendments improve some of the wordings in the implementation guidance,
including the introduction, disclosure of deferred difference between fair value and
transaction price and credit risk disclosures.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
16
(d) Amendments to IFRS 9
The amendments add a cross-reference to resolve potential confusion for a lessee
applying the derecognition requirements and clarify the term “transaction price”.
(e) Amendments to IFRS 10
The amendments remove the inconsistency between paragraphs B73 and B74 of
IFRS 10.
(f) Amendments to IAS 7
The amendments remove a reference to “cost method” in paragraph 37 of IAS 7.
G. Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS
7
The amendments include:
(a) Clarify the application of the ‘own-use’ requirements.
(b) Permit hedge accounting if these contracts are used as hedging instruments.
(c) Add new disclosure requirements to enable investors to understand the effect of these
contracts on a company’s financial performance and cash flows.
The abovementioned standards and interpretations issued by IASB are not yet effective at the
date when the Group’s financial statements were authorized for issue. As the Group is still
currently determining the potential impact of the new or amended standards and
interpretations listed under A, B, C, D, F and G. it is not practicable to estimate their impact
on the Group at this po int i n tim e.
4. Summary of material accounting policies
(1) Statement of compliance
The consolidated financial statements of the Group for the years ended 31 December 2024
and 2023 have been prepared in accordance with International Financial Reporting Standards
(IFRSs) as issued by the International Accounting Standa rds Board.
(2) Basis of preparation
A. Basis of measurement
The consolidated financial statements have been prepared under the historical cost
convention, except for those financial instruments that are measured at fair value with
changes ther ein shown in the consolidated financial statements.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
17
B. Functional and presentation currency
The functional currency of each Group entities is determined based on the primary
economic environment in which the entities operate. The Group’s consolidated financial
statements are presented in US Dollar, which is the Company’s functional currency and
presentation currency.
(3) Basis of consolidation
A. Preparation principle of consolidated financial statements
Control is achieved when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power
over the investee. Specifically, the Group controls an investee if and only if the Group has:
(a) power over the investee (i.e. existing rights that give it the current ability to direct
the relevant activities of the investee)
(b) exposure, or rights, to variable returns from its involvement with the investee, and
(c) the ability to use its power over the investee to affe ct its returns
When the Group has less than a majority of the voting or similar rights of an investee, the
Group considers all relevant facts and circumstances in assessing whether it has power over
an investee, including:
(a) the contractual arrangement with the other vote holders of the investee
(b) rights arising from other contractual arrangements
(c) the Group’s voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control.
Subsidiaries are fully consolidated from the acquisition date, being the date on which the
Group obtains control, and continue to be consolidated until the date that such control
ceases. The financial statements of the subsidiaries are prepared for the same reporting
period as the parent company, using uniform accounting policies. All intra-group balances,
income and expenses, unrealized gains and losses and dividends resulting from intra-group
transactions are eliminated in full.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
18
A change in the ownership interest of a subsidiary, without a change of control, is accounted
for as an equity transaction.
Total comprehensive income of the subsidiaries is attributed to the owners of the parent
and to the non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
If the Group loses control of a subsidiary, it:
(a) derecognizes the assets (including goodwill) and liabilities of the subsidiary;
(b) derecognizes the carrying amount of any non-controlling interest;
(c) recognizes the fair value of the consideration received;
(d) recognizes the fair value of any investment retained;
(e) reclassifies the parent’s share of components previously recognized in other
comprehensive income to profit or loss, or transfer directly to retained earnings if
required by other IFRSs; and
(f) recognizes any resulting difference in profit or loss.
The consolidated entities are listed as follows:

|  |  | 2024.12.31 | 2023.12.31
Investor | I nvestee Co mpany Name | Main bus inesses | Ownership | Ownership
|  |  | Perc entag e | Perc entag e
The C ompan y | Wisdo m Marine Lines S.A.(WML) | Shipping Indu stry | 100% | 100%
The C ompan y | Wisdo m Marine Internat ional Inc. (WII) | Shippin g Manage ment Industry | 100% | 100%
WII | Well Sh ip Mana gemen t and Ma ritime Consu ltant Co., L td. (WELL) | Shippin g Manage ment Industry | 100% | 100%
WII | Huian Sh ip Mana gement Co., L td. | Shippin g Manage ment Industry | 100% | 100%
WII | Wisdo m Lines Europe B.V. | Shippin g Manage ment Industry | 100% | 100%
WML | Adixi W is dom S.A. | Shippin g Industry | 100% | 100%
WML | Amis C arriers S.A. | Shippin g Industry | 100% | 100%
WML | Amis E legance S.A. | Shippin g Industry | 100% | 100%
WML | Amis For tune S.A. | Shippin g Industry | 100% | 100%
WML | Amis H ero S.A. | Shippin g Industry | 100% | 100%
WML | Amis In tegrity S.A. | Shipping Indu stry | 100% | 100%
WML | Amis In ternationa l S.A. | Shippin g Industry | 100% | 100%

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
19

|  |  | 2024.12.31 | 2023.12.31
Investor | I nvestee Co mpany Name | Main bus inesses | Ownership | Ownership
|  |  | Perc entag e | Perc entag e
WML | Amis Jus tice S.A. | Shipping Indu stry | 100% | 100%
WML | Amis Ma riner S.A. | Shippin g Industry | 100% | 100%
WML | Amis M iracle S.A. | Shippin g Industry | 100% | 100%
WML | Amis N ature Inc. | Shippin g Industry | 100% | 100%
WML | Amis N avigation S.A. | Shippin g Industry | 100% | 100%
WML | Amis Q ueen S.A. | Shippin g Industry | 100% | 100%
WML | Amis Sta r S.A. | Shippin g Industry | 100% | 100%
WML | Amis V ictory S.A. | Shippin g Industry | 100% | 100%
WML | Amis W is do m S.A. | Shippin g Industry | 100% | 100%
WML | Amis X cel Inc. | Shipp ing Indu stry | 100% | 100%
WML | Arikun W is d om S.A. | Shippin g Industry | 100% | 100%
WML | Atayal Brave S.A. | Shipp ing Indu stry | 100% | 100%
WML | Atayal Mariner S.A. | Shippin g Industry | 100% | 100%
WML | Atayal Star S.A. | Shippin g Industry | 100% | 100%
WML | Atayal W isdo m S.A. | Shippin g Industry | 100% | 100%
WML | Babuz a W is dom S.A. | Shippin g Industry | 100% | 100%
WML | Beag le Marine S.A. | Shippin g Industry | - | 100%
WML | Beag le W isdo m S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Brave S.A. | Shipp ing Indu stry | 100% | 100%
WML | Bunun Champion S.A. | Shipping Indu stry | 100% | 100%
WML | Bunun Dynasty S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Elegance S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Fortune S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Hero S.A. | Shippin g Industry | 100% | 100%
WML | Bunun I n finity S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Justice S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Marine S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Navigat ion S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Noble In c. | Shippin g Industry | 100% | 100%
WML | Bunun T reasure S.A. | Shipp ing Indu stry | 100% | 100%
WML | Bunun Unico rn S.A. | Shippin g Industry | 100% | 100%
WML | Bunun V ictory S.A. | Shipp ing Indu stry | 100% | 100%

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
20

|  |  | 2024.12.31 | 2023.12.31
Investor | I nvestee Co mpany Name | Main bus inesses | Ownership | Ownership
|  |  | Perc entag e | Perc entag e
WML | Bunun W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Bunun Y outh Inc. | Shippin g Industry | 100% | 100%
WML | Bunun Zest S.A. | Shippin g Industry | 100% | 100%
WML | Cosmic W isdo m S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Champi on S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Dolph in S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Eleganc e S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Fortune S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Glory S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Hero S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Infinity S.A. | Shipp ing Indu stry | 100% | 100%
WML | Daiwan Justice S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Kalon S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Leader S.A. | Shippin g Industry | 100% | 100%
WML | Daiwan Miracle S.A. | Shippin g Industry | 100% | 100%
WML | Dumun Ma rine S.A. | Shippin g Industry | 100% | 100%
WML | Dumun Na vigatio n S.A. | Shippin g Industry | 100% | 100%
WML | Elite S teamship S.A. | Shippin g Industry | 100% | 100%
WML | Euroa sia Inv estmen t S.A. | Shippin g Industry | 100% | 100%
WML | Favoran W i sdom S.A. | Shippin g Industry | 100% | 100%
WML | Fourseas Marit ime S.A. Panam a | Shippin g Industry | 100% | 100%
WML | Fraterni ty Mar ine S.A. | Shipping Indu stry | 100% | 100%
WML | Fraterni ty Ship I n vestmen t S.A. | Shippin g Indu stry | 100% | 100%
WML | Genius Ma rine S.A. | Shippin g Industry | 100% | 100%
WML | Genius Pr ince S.A. | Shippin g Industry | 100% | 100%
WML | Genius Sta r Carr iers S.A. | Shipping Indu stry | 100% | 100%
WML | Genius Sta r Nav igation S.A. | Shipping Indu stry | 100% | 100%
WML | GS Globa l S.A. | Shippin g Industry | 100% | 100%
WML | GS Nav igation S.A. | Shippin g Industry | 100% | 100%
WML | GSX M aritime S.A. | Shippin g Industry | 100% | 100%
WML | Guma Ma rin e S.A. | Shippin g Industry | 100% | 100%
WML | Guma Na vigation S.A. | Shippin g Industry | 100% | 100%

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
21

|  |  | 2024.12.31 | 2023.12.31
Investor | I nvestee Co mpany Name | Main bus inesses | Ownership | Ownership
|  |  | Perc entag e | Perc entag e
WML | Harmony Pescado res S.A. (Pan ama) | Shippin g Industry | 100% | 100%
WML | Harmony T ransport S.A. | Shipping Indu stry | 100% | 100%
WML | Hoanya W isdo m S.A. | Shipp ing Indu stry | 100% | 100%
WML | Infinite W is d om S.A. | Shippin g Industry | 100% | 100%
WML | Katagalan Ace S.A. | Shipping Indu stry | 100% | 100%
WML | Katagalan Brave S.A. | Shippin g Industry | 100% | 100%
WML | Katagalan Ca rriers S.A. | Shippin g Industry | 100% | 100%
WML | Katagalan Cha mpion S.A. | Shipping Indu stry | 100% | 100%
WML | Katagalan Line S.A. | Shippin g Industry | 100% | 100%
WML | Katagalan Mar ine S.A. | Shippin g Industry | 100% | 100%
WML | Katagalan Nav igation S.A. | Shippin g Industry | 100% | 100%
WML | Katagalan Star S.A. | Shippin g Industry | 100% | 100%
WML | Katagalan W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Kaval an W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Ligulao W isdo m S.A. | Shipp ing Indu stry | 100% | 100%
WML | Lloa W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Log W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Luilang W isdo m S.A. | Shipp ing Indu stry | 100% | 100%
WML | Magnate Mar itime S.A. | Shippin g Industry | 100% | 100%
WML | Mak atao W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Mercy M arine L ine S.A. | Shippin g Industry | 100% | 100%
WML | Mighty Maritim e S.A. | Shipp ing Indu stry | 100% | 100%
WML | Mimasak a Inves tment S.A. | Shippin g Industry | 100% | 100%
WML | Mount W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Paiwan Ace S.A. | Shippin g Industry | 100% | 100%
WML | Paiwan W is d om S.A. | Shippin g Industry | 100% | 100%
WML | Papora W isdom S.A. | Shipping Indu stry | 100% | 100%
WML | Pazeh W isdom S.A. | Shippin g Industry | 100% | 100%
WML | Pescado res Inter national L ine S.A. | Shipp ing Indu stry | 100% | 100%
WML | Poavosa Interna tional S.A. | Shippin g Industry | 100% | 100%
WML | Poavosa Mariti me S.A. | Shippin g Industry | 100% | 100%
WML | Poavosa Navigat ion S.A. | Shipping Indu stry | 100% | 100%

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
22

|  |  | 2024.12.31 | 2023.12.31
Investor | I nvestee Co mpany Name | Main bus inesses | Ownership | Ownership
|  |  | Perc entag e | Perc entag e
WML | Poavosa W isdom S.A. | Shipping Indu stry | 100% | 100%
WML | Rukai Ma ritim e S.A. | Shippin g Industry | 100% | 100%
WML | Sakizay a D iamond S.A. | Shippin g Industry | 100% | 100%
WML | Saki zaya F ortun e S.A. | Shipping Indu stry | 100% | 100%
WML | Saki zaya G lory S.A. | Shipping Indu stry | 100% | 100%
WML | Saki zaya H ero S.A. | Shippin g Industry | 100% | 100%
WML | Saki zaya Integ rity S.A. | Shipping Indu stry | 100% | 100%
WML | Sakizay a Justice S.A. | Shipping Indu stry | 100% | 100%
WML | Saki zaya K alon S.A. | Shipping Indu stry | 100% | 100%
WML | Saki zaya L eader S.A. | Shipp ing Indu stry | 100% | 100%
WML | Saki zaya L ine S.A. | Shipping Indu stry | 100% | 100%
WML | Sakizay a Marine S.A. | Shippin g Industry | 100% | 100%
WML | Saki zaya Miracl e S.A. | Shipping Indu stry | 100% | 100%
WML | Sakizay a N aviga ti o n S.A. | Shippin g Industry | 100% | 100%
WML | Saki zaya O rchid S.A. | Shipping Indu stry | 100% | 100%
WML | Saki zaya P ower S.A. | Shipp ing Indu stry | 100% | 100%
WML | Saki zaya Qu een S.A. | Shipp ing Indu stry | 100% | 100%
WML | Saki zaya R esp ect S.A. | Shipping Indu stry | 100% | 100%
WML | Saki zaya Un icorn S.A. | Shipping Indu stry | 100% | 100%
WML | Sakizay a V ictory S.A. | Shippin g Industry | 100% | 100%
WML | Saki zaya W isd om S.A. | Shippin g Industry | 100% | 100%
WML | Sakizay a Y outh S.A. | Shippin g Industry | 100% | 100%
WML | Sao W isdo m S.A. | Shipp ing Indu stry | 100% | 100%
WML | Saysiat W is d om S.A. | Shipp ing Indu stry | 100% | 100%
WML | Siraya W isdo m S.A. | Shipp ing Indu stry | 100% | 100%
WML | T a ivoan W isdo m S.A. | Shipp ing Indu stry | 100% | 100%
WML | T ao Ace S.A. | Shippin g Industry | 100% | 100%
WML | T ao Brave S.A. | Shippin g Industry | 100% | 100%
WML | T ao Marin er S.A. | Shippin g Industry | 100% | 100%
WML | T ao Star S.A. | Shippin g Industry | 100% | 100%
WML | T ao T reasur e S.A. | Shipping Indu stry | 100% | 100%
WML | T ao kas Ma rine S.A. | Shipping Indu stry | 100% | 100%

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
23

|  |  | 2024.12.31 | 2023.12.31
Investor | I nvestee Co mpany Name | Main bus inesses | Ownership | Ownership
|  |  | Perc entag e | Perc entag e
WML | T ao kas Na vigation S.A. | Shipp ing Indu stry | 100% | 100%
WML | T ao kas W isdom S.A. | Shippin g Industry | 100% | 100%
WML | T a roko Ma ritime S.A. | Shipp ing Indu stry | 100% | 100%
WML | T a roko W isdom S.A. | Shippin g Industry | 100% | 100%
WML | T riumph W isdo m S.A. | Shipping Indu stry | 100% | 100%
WML | T robian W isd om S.A. | Shipp ing Indu stry | 100% | 100%
WML | Unicorn Bravo S.A. | Shippin g Industry | 100% | 100%
WML | Unicorn Fortune S.A. | Shippin g Industry | - | 100%
WML | Unicorn Logger S.A. | Shipping Indu stry | 100% | 100%
WML | Unicorn Logist ics S.A. | Shippin g Industry | 100% | 100%
WML | Unicorn Marine S.A. | Shipping Indu stry | 100% | 100%
WML | Unicorn Pescador es S.A. | Shippin g Industry | 100% | 100%
WML | Unicorn Succe ssor S.A. | Shippin g Industry | 100% | 100%
WML | V ayi W i sdom S.A. | Shippin g Industry | 100% | 100%
WML | W ins om e W isd o m S.A. | Shipping Indu stry | 100% | 100%
WML | W isdom Ace S.A. | Shippin g Industry | - | 100%
WML | W isdom Capita l (BVI) In c. | Invest ment Indu stry | 100% | -
WML | W isdom Charte ri n g S.A. | Shipping Indu stry | 100% | 100%

Subsidiaries excluded from consolidation: None.
(4) For eign currency transactions
Transactions in foreign currencies are initially recorded by the Group entities at their
respective functional currency rates prevailing at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are retranslated at the functional currency
closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair
value in a foreign currency are translated using the exchange rates at the date when the fair
value is determined. Non-monetary items that are measured at historical cost in a foreign
currency are translated using the exchange rates as at the dates of the initial transactions.
All exchange differences arising on the settlement of monetary items or on translating
monetary items are taken to profit or loss in the period in which they arise except for the
following:
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WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
24
A. Exchange differences arising from foreign currency borrowings for an acquisition of a
qualifying asset to the extent that they are regarded as an adjustment to interest costs are
included in the borrowing costs that are eligible for capitalization.
B. Foreign currency items within the scope of IFRS 9 “Financial Instruments” are accounted
for based on the accounting policy for financial instruments.
C. Exchange differences arising on a monetary item that forms part of a reporting entity’s net
investment in a foreign operation is recognized initially in other comprehensive income
and reclassified from equity to profit or loss on disposal of the net investment.
When a gain or loss on a non-monetary item is recognized in other comprehensive income,
any exchange component of that gain or loss is recognized in other comprehensive income.
When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange
component of that gain or loss is recognized in profit or loss.
(5) Translation of financial statements in foreign currency
The assets and liabilities of foreign operations are translated at the closing rate of exchange
prevailing at the reporting date and their income and expenses are translated at an average rate
for the period. The exchange differences arising on the translation are recognized in other
comprehensive income. On the disposal of a foreign operation, the cumulative amount of the
exchange differences relating to that foreign operation, recognized in other comprehensive
income and accumulated in the separate component of equity, is reclassified from equity to
profit or loss when the gain or loss on disposal is recognized.
The following partial disposals are accounted for as disposals:
A. when the partial disposal involves the loss of control of a subsidiary that includes a foreign
operation; and
B. when the retained interest after the partial disposal of an interest in a joint arrangement or
a partial disposal of an interest in an associate that includes a foreign operation is a financial
asset that includes a foreign operation.
On the partial disposal of a subsidiary that includes a foreign operation that does not result in
a loss of control, the proportionate share of the cumulative amount of the exchange differences
recognized in other comprehensive income is re-attributed to the non-controlling interests in
that foreign operation. In partial disposal of an associate or jointly controlled entity that
includes a foreign operation that does not result in a loss of significant influence or joint
control, only the proportionate share of the cumulative amount of the exchange differences
recognized in other comprehensive income is reclass ified to profit or loss.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
25
Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities
arising on the acquisition of a foreign operation are treated as assets and liabilities of the
foreign operation and expressed in its functional currency.
(6) Current and non-current distinction
An asset is classified as current when:
A. The Group expects to realize the asset, or intends to sell or consume it, in its normal
operating cycle
B. The Group holds the asset primarily for the purpose of trading
C. The Group expects to realize the asset within twelve months after the reporting period
D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when:
A. The Group expects to settle the liability in its normal operating cycle
B. The Group holds the liability primarily for the purpose of trading
C. The liability is due to be settled within twelve months after the reporting period
D. The Group does not have the right at the end of the reporting period to defer settlement of
the liability for at least twelve months after the reporting period.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly
liquid time deposits or investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Time deposits which mature over three months are held for the purpose of meeting short-term
cash commitments rather than for investment or other purposes. They are readily convertible
to known amounts of cash and are subject to an insignificant risk of changes in value, therefore
they are reported as cash and cash equivalents.
(8) Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to
the contractual provisions of the instru ment.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
26
Financial assets and financial liabilities within the scope of IFRS 9 “Financial Instruments”
are recognized initially at fair value plus or minus, in the case of investments not at fair value
through profit or loss, directly attributable transaction costs.
A. Financial instruments: recognition and measurement
The Group accounts for regular way purchase or sales of financial assets on the trade date.
The Group classified financial assets as subsequently measured at amortized cost or fair
value through other comprehensive income on the basis of both:
(a) the Group’s business model for managing the financial assets and
(b) the contractual cash flow characteristics of the financial asset.
Financial assets measured at amortized cost
A financial asset is measured at amortized cost if both of the following conditions are met
and presented as note receivables, trade receivables financial assets measured at amortized
cost and other receivables etc., on balance sheet as at the reporting date:
(a) the financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
Such financial assets are subsequently measured at amortized cost (the amount at which
the financial asset is measured at initial recognition minus the principal repayments, plus
or minus the cumulative amortization using the effective interest method of any difference
between the initial amount and the maturity amount and adjusted for any loss allowance)
and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when
the financial asset is derecognized, through the amortization process or in order to
recognize the impairment gains or losses.
Interest revenue is calculated by using the effective interest method. This is calculated by
applying the effective interest rate to the gross carrying amount of a financial asset except
for:
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
27
(a) purchased or originated credit-impaired financial assets. For those financial assets, the
Group applies the credit-adjusted effective interest rate to the amortized cost of the
financial asset from initial recognition.
(b) financial assets that are not purchased or originated credit-impaired financial assets but
subsequently have become credit-impaired financial assets. For those financial assets,
the Group applies the effective interest rate to the amortized cost of the financial asset
in subsequent reporting periods.
Financial asset measured at fair value through other comprehensive income
A financial asset is measured at fair value through other comprehensive income if both of
the following conditions are met:
(a) the financial asset is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
Recognition of gain or loss on a financial asset measured at fair value through other
comprehensive income is described as below:
(a) A gain or loss on a financial asset measured at fair value through other comprehensive
income recognized in other comprehensive income, except for impairment gains or
losses and foreign exchange gains and losses, until the financial asset is derecognized or
reclassified.
(b) When the financial asset is derecognized the cumulative gain or loss previously
recognized in other comprehensive income is reclassified from equity to profit or loss
as a reclassification adjustment.
(c) Interest revenue is calculated by using the effective interest method. This is calculated
by applying the effective interest rate to the gross carrying amount of a financial asset
except for:
i. Purchased or originated credit-impaired financial assets. For those financial
assets, the Group applies the credit-adjusted effective interest rate to the amortized
cost of the financial asset from initial recognition.
ii. Financial assets that are not purchased or originated credit-impaired financial
assets but subsequently have become credit-impaired financial assets. For those
financial assets, the Group applies the effective interest rate to the amortized cost
of the financial asset in subsequent reporting pe riods.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
28
Besides, for certain equity investments within the scope of IFRS 9 that is neither held for
trading nor contingent consideration recognized by an acquirer in a business combination
to which IFRS 3 applies, the Group made an irrevocable election to present the changes of
the fair value in other comprehensive income at initial recognition. Amounts presented in
other comprehensive income shall not be subsequently transferred to profit or loss (when
disposal of such equity instrument, its cumulated amount included in other components of
equity is transferred directly to the retained earnings) and these investments should be
presented as financial assets measured at fair value through other comprehensive income
on the balance sheet. Dividends on such investment are recognized in profit or loss unless
the dividends clearly represent a recovery of part of the cost of investment.
Financial asset measured at fair value through profit or loss
Financial assets were classified as measured at amortized cost or measured at fair value
through other comprehensive income based on aforementioned criteria. All other financial
assets were measured at fair value through profit or loss and presented on the balance sheet
as financial assets measured at fair value through profit or loss.
Such financial assets are measured at fair value, the gains or losses resulting from
remeasurement is recognized in profit or loss which includes any dividend or interest
received on such financial assets.
B. Impairment of financial assets
The Group recognizes a loss allowance for expected credit losses on debt instrument
investments measured at fair value through other comprehensive income and financial asset
measured at amortized cost. The loss allowance on debt instrument investments measured
at fair value through other comprehensive income is recognized in other comprehensive
income and not reduce the carrying amount in the statement of financial position.
The Group measures expected credit losses of a financial instrument in a way that reflects:
(a) an unbiased and probability-weighted amount that is determined by evaluating a range
of possible outcomes;
(b) the time value of money; and
(c) reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
29
The loss allowance is measures as follow:
(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial
asset has not increased significantly since initial recognition or the financial asset is
determined to have low credit risk at the reporting date. In addition, the Group
measures the loss allowance for a financial asset at an amount equal to lifetime
expected credit losses in the previous reporting period, but determines at the current
reporting date that condition is no longer met.
(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial
asset has increased significantly since initial recognition or financial asset that is
purchased or originated credit-impaired financial asset.
(c) For trade receivables or contract assets arising from transactions within the scope of
IFRS 15, the Group measures the loss allowance at an amount equal to lifetime
expected credit losses.
At each reporting date, the Group needs to assess whether the credit risk on a financial
asset has been increased significantly since initial recognition by comparing the risk of a
default occurring at the reporting date and the risk of default occurring at initial recognition.
Please refer to Note 12 for further details on credit risk.
C. Derecognition of financial assets
A financial asset is derecognized when:
(a) The rights to receive cash flows from the asset have expired
(b) The Group has transferred the asset and substantially all the risks and rewards of the
asset have been transferred
(c) The Group has neither transferred nor retained substantially all the risks and rewards
of the asset, but has transferred control of the asset.
On derecognition of a financial asset in its entirety, the difference between the carrying
amount and the consideration received or receivable including any cumulative gain or loss
that had been recognized in other comprehensive income is r ecognized in profit or loss.
D. Financial liabilities and equity
Classification between liabilities or equity
The Group classifies the instrument issued as a financial liability or an equity instrument
in accordance with the substance of the contractual arrangement and the definitions of a
financial liability, and an equity instrument.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
30
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities. The transaction costs of an equity transaction are
accounted for as a deduction from equity (net of any related income tax benefit) to the
extent they are incremental costs directly attributable to the equity transaction that
otherwise would have been avoided.
Compound instruments
The Group evaluates the terms of the convertible bonds issued to determine whether it
contains both a liability and an equity component. Furthermore, the Group assesses if the
economic characteristics and risks of the put and call options contained in the convertible
bonds are closely related to the economic characteristics and risk of the host contract before
separating the equity element.
For the liability component excluding the derivatives, its fair value is determined based on
the rate of interest applied at that time by the market to instruments of comparable credit
status. The liability component is classified as a financial liability measured at amortized
cost before the instrument is converted or settled.
For the embedded derivative that is not closely related to the host contract (for example, if
the exercise price of the embedded call or put option is not approximately equal on each
exercise date to the amortized cost of the host debt instrument), it is classified as a liability
component and subsequently measured at fair value through profit or loss unless it qualifies
for an equity component. The equity component is assigned the residual amount after
deducting from the fair value of the instrument as a whole the amount separately
determined for the liability component. Its carrying amount is not re-measured in the
subsequent accounting periods. If the convertible bond issued does not have an equity
component, it is accounted for as a hybrid instrument in accordance with the requirements
under IFRS 9 “Financial Instruments”.
Transaction costs are apportioned between the liability and equity components of the
convertible bond based on the allocation of proceeds to the liability and equity components
when the instruments are initially recognized.
On conversion of a convertible bond before maturity, the carrying amount of the liability
component being the amortized cost at the date of conversion is transferred to equity.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
31
Financial liabilities
Financial liabilities within the scope of IFRS 9 “Financial Instruments” are classified as
financial liabilities at fair value through profit or loss or financial liabilities measured at
amortized cost upon initial recognition.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through
profit or loss. A financial liability is classified as held for trading if:
(a) it is acquired or incurred principally for the purpose of selling or repurchasing it in the
near term;
(b) on initial recognition it is part of a portfolio of identified financial instruments that are
managed together and for which there is evidence of a recent actual pattern of short-
term profit-taking; or
(c) it is a derivative (except for a derivative that is a financial guarantee contract or a
designated and effective hedging instrument).
If a contract contains one or more embedded derivatives, the entire hybrid (combined)
contract may be designated as a financial liability at fair value through profit or loss; or a
financial liability may be designated as at fair value through profit or loss when doing so
results in more relevant information, because either:
(a) it eliminates or significantly reduces a measurement or recognition inconsistency; or
(b) a group of financial assets, financial liabilities or both is managed and its performance
is evaluated on a fair value basis, in accordance with a documented risk management
or investment strategy, and information about the group is provided internally on that
basis to the key management personnel.
Gains or losses on the subsequent measurement of liabilities at fair value through profit or
losses including interest paid are recognized in profit or loss.
Financial liabilities at amortized cost
Financial liabilities measured at amortized cost include interest bearing loans and
borrowings that are subsequently measured using the effective interest rate method after
initial recognition. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the effective interest rate method amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or t ransaction costs.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
32
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires.
When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified
(whether or not attributable to the financial difficulty of the debtor), such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts and the consideration
paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit
or loss.
E. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the
balance sheet if, and only if, there is a currently enforceable legal right to offset the
recognized amounts and there is an intention to settle on a net basis, or to realize the assets
and settle the liabilities simultaneously.
(9) Derivative instrument
The Group uses derivative instruments to hedge its foreign currency risks. A derivative is
classified in the balance sheet as financial assets or liabilities at fair value through profit or
loss (held for trading) except for derivatives that are designated effective hedging instruments
which are classified as derivative financial assets or liabilities for hedging.
Derivative instruments are initially recognized at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at fair value. Derivatives are carried
as financial assets when the fair value is positive and as financial liabilities when the fair value
is negative. Any gains or losses arising from changes in the fair value of derivatives are taken
directly to profit or loss, except for the effective portion of cash flow hedges, which is
recognized in equity.
When the host contracts are either non-financial assets or liabilities, derivatives embedded in
host contracts are accounted for as separate derivatives and recorded at fair value if their
economic characteristics and risks are not closely related to those of the host contracts and the
host contracts are not designated at fair value thou gh profit or loss.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
33
(10) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
A. In the principal market for the asset or liability, or
B. In the absence of a principal market, in the most advantageous market for the asset or
liability
The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants
in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
(11) Inventories
Inventories are bunker oil and are carried at the lower of cost or net realizable value. The cost
of fuel is determined using the weighted-average cost method. Net realizable value is the
determined based on the estimated selling price in the ordinary course of business, less the
estimated selling expenses at the end of the period.
(12) Investments accounted for using the equity method
The Group’s investment in its associate is accounted for using the equity method other than
those that meet the criteria to be classified as held for sale. An associate is an entity over which
the Group has significant influence. A joint venture is a type of joint arrangement whereby
the parties that have joint control of the arrangement have rights to the net assets of the joint
venture.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
34
Under the equity method, the investment in the associate or an investment in a joint venture is
carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the
Group’s share of net assets of the associate or joint venture. After the interest in the associate or
joint venture is reduced to zero, additional losses are provided for, and a liability is recognized,
only to the extent that the Group has incurred legal or constructive obligations or made payments
on behalf of the associate or joint venture. Unrealized gains and losses resulting from
transactions between the Group and the associate or joint venture are eliminated to the extent of
the Group’s related interest in the associate or joint venture.
When changes in the net assets of an associate or a joint venture occur and not those that are
recognized in profit or loss or other comprehensive income and do not affects the Group’s
percentage of ownership interests in the associate or joint venture, the Group recognizes such
changes in equity based on its percentage of ownership interests. The resulting capital surplus
recognized will be reclassified to profit or loss at the time of disposing the associate or joint
venture on a prorata basis.
When the associate or joint venture issues new stock, and the Group’s interest in an associate
or a joint venture is reduced or increased as the Group fails to acquire shares newly issued in
the associate or joint venture proportionately to its original ownership interest, the increase or
decrease in the interest in the associate or joint venture is recognized in Additional Paid in
Capital and Investment accounted for using the equity method. When the interest in the
associate or joint venture is reduced, the cumulative amounts previously recognized in other
comprehensive income are reclassified to profit or loss or other appropriate items. The
aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis
when the Group disposes the associate or joint venture.
The financial statements of the associate or joint venture are prepared for the same reporting
period as the Group. Where necessary, adjustments are made to bring the accounting policies
in line with those of the Group.
The Group determines at each reporting date whether there is any objective evidence that the
investment in the associate or an investment in a joint venture is impaired in accordance with
IAS 28 Investments in Associates and Joint Ventures. If this is the case the Group calculates
the amount of impairment as the difference between the recoverable amount of the associate
or joint venture and its carrying value and recognizes the amount in the ‘share of profit or loss
of an associate’ in the statement of comprehensive income in accordance with IAS 36
Impairment of Assets. In determining the value in use of the investment, the Group estimates:
A. Its share of the present value of the estimated future cash flows expected to be generated
by the associate or joint venture, including the cash flows from the operations of the
associate and the proceeds on the ultimate disposal of the investment; or
B. The present value of the estimated future cash flows expected to arise from dividends to be
received from the investment and from its ultimate disposal.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
35
Because goodwill that forms part of the carrying amount of an investment in an associate or
an investment in a joint venture is not separately recognized, it is not tested for impairment
separately by applying the requirements for impairment testing goodwill in IAS 36
Impairment of Assets.
Upon loss of significant influence over the associate or joint venture, the Group measures and
recognizes any retaining investment at its fair value. Any difference between the carrying
amount of the associate or joint venture upon loss of significant influence and the fair value
of the retaining investment and proceeds from disposal is recognized in profit or loss.
Furthermore, if an investment in an associate becomes an investment in a joint venture or an
investment in a joint venture becomes an investment in an associate, the entity continues to
apply the equity method and does not remeasure the retained interest.
(13) Property, plant and equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of dismantling and
removing the item and restoring the site on which it is located and borrowing costs for
construction in progress if the recognition criteria are met. Each part of an item of property,
plant and equipment with a cost that is significant in relation to the total cost of the item is
depreciated separately. When significant parts of property, plant and equipment are required
to be replaced in intervals, the Group recognized such parts as individual assets with specific
useful lives and depreciation, respectively. The carrying amount of those parts that are
replaced is derecognized in accordance with the derecognition provisions of IAS 16
“Property, Plant and Equipment”. When a major inspection is performed, its cost is
recognized in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognized in
profit or loss as incurred.
All major components of the vessels are depreciated on a straight-line basis over the useful
life of the assets. Depreciation is based on cost less the estimated residual value. The residual
value is estimated as the lightweight tonnage of each vessel multiplied by scrap value per ton.
The dry-docking cost, including acquisition of a new vessel, is separated from the remaining
cost of the vessel. These two cost elements are recognized and depreciated separately. For the
building of new vessels, the initial dry-docking cost is also segregated and capitalized
separately.
The Group has a long-term plan for dry-docking of the vessels. Dry-docking cost is capitalized
and depreciated until the next planned dry-docking. Other capitalized improvements are
depreciated over the estimated economic life.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
36
The carrying values of vessels and equipment are reviewed for impairment when events or
changes in circumstances indicate that the carrying value may not be recoverable. Valuations
are performed frequently to ensure that the fair value of a revalued asset does not differ
materially from its carrying amount. The residual values, useful lives, and depreciation
methods are reviewed, and adjusted if appropriate, at the end of each reporting period, except
for those cases which are of little consequence.
A vessel or item of equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising from derecognition of
an asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the consolidated income statement in the year the asset is
derecognized.
Expenditures on the building of new vessels are capitalized as vessels under construction as
they are paid. Capitalized value is reclassified from vessel under construction to vessels upon
delivery from the dock. The total acquisition cost of a vessel is determined based on the sum
of installments paid plus the costs incurred during the construction period. Borrowing costs
that are attributable to the construction of the vessels are capitalized as part of the vessel. The
interest rate is based on the weighted-average borrowing costs for the Group, limited to the
total borrowing costs incurred in the period.
Depreciation is calculated on a straight-line basis over the estimated economic lives of the
following assets:

Buildings | 28 years
V essels | 16-25 years
V essel equipment | 3-5 years
Dry dock | 2.5 years
Other | 3-5 years
Right-of-use ass ets | 3-25 years

An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.
The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each financial year end and adjusted prospectively, if appropriate.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
37
(14) Investment property
The Group’s owned investment properties are measured initially at cost, including transaction
costs. The carrying amount includes the cost of replacing part of an existing investment
property at the time that cost is incurred if the recognition criteria are met and excludes the
costs of day-to-day servicing of an investment property. Subsequent to initial recognition,
other than those that meet the criteria to be classified as held for sale (or are included in a
disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets
Held for Sale and Discontinued Operations, investment properties are measured using the cost
model in accordance with the requirements of IAS 16 Property, Plant and Equipment for that
model. If investment properties are held by a lessee as right-of-use assets and are not held for
sale in accordance with IFRS 5, investment properties are measured in accordance with the
requirements of IFRS 16.
Depreciation is calculated on a straight-line basis over the estimated economic lives of the
following assets:
Buildings 28 years
Investment properties are derecognized when either they have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is
expected from its disposal.
The Group transfers properties to or from investment properties according to the actual use of
the properties.
The Group transfers properties to or from investment properties when there is a change in use
for these assets. Properties are transferred to or from investment properties when the properties
meet, or cease to meet, the definition of investment property and there is evidence of the change
in use.
(15) Leases
The Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract conveys the right to control the use
of an identified asset for a period of time, the Group assesses whether, throughout the period of
use, has bot h of the fo llowi ng:
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
38
A. the right to obtain substantially all of the economic benefits from use of the identified
asset; and
B. the right to direct the use of the identified asset.
For a contract that is, or contains, a lease, the Group accounts for each lease component within
the contract as a lease separately from non-lease components of the contract. For a contract
that contains a lease component and one or more additional lease or non-lease components,
the Group allocates the consideration in the contract to each lease component on the basis of
the relative stand-alone price of the lease component and the aggregate stand-alone price of
the non-lease components. The relative stand-alone price of lease and non-lease components
shall be determined on the basis of the price the lessor, or a similar supplier, would charge the
Group for that component, or a similar component, separately. If an observable stand-alone
price is not readily available, the Group estimates the stand-alone price, maximising the use
of observable information.
Group as a lessee
Except for leases that meet and elect short-term leases or leases of low-value assets, the Group
recognizes right-of-use asset and lease liability for all leases which the Group is the lessee of
those lease contracts.
At the commencement date, the Group measures the lease liability at the present value of the
lease payments that are not paid at that date. The lease payments discount using the interest
rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily
determined, the Group uses its incremental borrowing rate. At the commencement date, the
lease payments included in the measurement of the lease liability comprise the following
payments for the right to use the underlying asset during the lease term that are not paid at the
commencement date:
A. fixed payments (including in-substance fixed payments), less any lease incentives
receivable;
B. variable lease payments that depend on an index or a rate, initially measured using the
index or rate as at the commencement date;
C. amounts expected to be payable by the lessee under residual value guarantees;
D. the exercise price of a purchase option if the Group is reasonably certain to exercise that
option; and
E. payments of penalties for terminating the lease, if the lease term reflects the lessee
exercising an option to terminate the leas e.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
39
After the commencement date, the Group measures the lease liability on an amortised cost
basis, which is increasing the carrying amount to reflect interest on the lease liability by using
an effective interest method; and reducing the carrying amount to reflect the lease payments
made.
At the commencement date, the Group measures the right-of-use asset at cost. The cost of the
right-of-use asset comprises:
A. the amount of the initial measurement of the lease liability;
B. any lease payments made at or before the commencement date, less any lease incentives
received;
C. any initial direct costs incurred by the lessee; and
D. an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset, restoring the site on which it is located or restoring the underlying asset
to the condition required by the terms and conditions of the lease.
For subsequent measurement of the right-of-use asset, the Group measures the right-of-use
asset at cost less any accumulated depreciation and any accumulated impairment losses. That
is, the Group measures the right-of-use applying a cost model.
If the lease transfers ownership of the underlying asset to the Group by the end of the lease
term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase
option, the Group depreciates the right-of-use asset from the commencement date to the end
of the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use
asset from the commencement date to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term.
The Group applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset
is impaired and to account for any impairment loss identified.
Except for leases that meet and elect short-term leases or leases of low-value assets, the Group
presents right-of-use assets and lease liabilities in the balance sheet and presents interest
expense separately from the depreciation charge associate with those leases in the
consolidated income statement.
For short-term leases or leases of low-value assets, the Group elects to recognize the lease
payments associated with those leases as an expense on either a straight-line basis over the
lease term or another systematic basis.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
40
Group as a lessor
At inception of a contract, the Group classifies each of its leases as either an operating lease
or a finance lease. A lease is classified as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset. A lease is classified as an
operating lease if it does not transfer substantially all the risks and rewards incidental to
ownership of an underlying asset. At the commencement date, the Group recognizes assets
held under a finance lease in its balance sheet and present them as a receivable at an amount
equal to the net investment in the lease.
For a contract that contains lease components and non-lease components, the Group allocates
the consideration in the contract applying IFRS 15.
The Group recognizes lease payments from operating leases as rental income on either a
straight-line basis or another systematic basis. Variable lease payments for operating leases
that do not depend on an index or a rate are recognized as rental income when incurred.
(16) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of
intangible assets acquired in a business combination is its fair value as at the date of
acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment losses, if any. Internally generated
intangible assets, excluding capitalized development costs, are not capitalized and expenditure
is reflected in profit or loss for the year in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortization period and the amortization method for an intangible asset with a finite useful
life is reviewed at least at the end of each financial year. Changes in the expected useful life
or the expected pattern of consumption of future economic benefits embodied in the asset is
accounted for by changing the amortization period or method, as appropriate, and are treated
as changes in accounting estimates.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
41
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment
annually, either individually or at the cash-generating unit level. The assessment of indefinite
life is reviewed annually to determine whether the indefinite life continues to be supportable.
If not, the change in useful life from indefinite to finite is made on a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in profit or loss when the asset is derecognized.
(17) Impairment of non-financial assets
The Group assesses at the end of each reporting period whether there is any indication that an
asset in the scope of IAS 36“Impairment of Assets” may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the Group estimates the
asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-
generating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined
for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
For assets excluding goodwill, an assessment is made at each reporting date as to whether
there is any indication that previously recognized impairment losses may no longer exist or
may have decreased. If such indication exists, the Group estimates the asset’s or cash-
generating unit’s recoverable amount. A previously recognized impairment loss is reversed
only if there has been an increase in the estimated service potential of an asset which in turn
increases the recoverable amount. However, the reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been recognized for
the asset in prior years.
An impairment loss of continuing operations or a reversal of such impairment loss is
recognized in pr o fit or loss.
(18) Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as
a result of a past event, it is probably that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Where the Group expects some or all of a provision to be
reimbursed, the reimbursement is recognized as a separate asset but only when the
reimbursement is virtually certain. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects the risks specific to the
liability. Where discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
42
The liability to pay a levy is recognised progressively if the obligating event occurs over a
period of time.
(19) Revenue recognition
Hire revenue
Hire revenue is recognized when it is probable that the economic benefits will flow to the
Group and when the revenue can be measured reliably. The revenue is measured at the fair
value of consideration that the Group has received or had the right to receive. The revenue is
recognized on a time proportion basis over the lease term.
Freight revenue and vessel management revenue
The Group’s revenue arising from contracts with customers are rendering of services,
including shipping services and vessel management services. Such services are separately
priced or negotiated, and provided based on contract periods. As the Group provides the
services over the contract period, so that the customers simultaneously receive and consume
the benefits provided by the Group. Accordingly, the performance obligations are satisfied
over time, and the related revenue are recognized by reference to the stage of completion over
the period.
Most of the contractual considerations of the Group are received on average during the
contract period after the provision of services. When the Group has performed the services to
customers but does not has a right to an amount of consideration that is unconditional, these
contacts should be presented as contract assets. However, for some rendering of services
contracts, part of the consideration was received from customers upon signing the contract,
and the Group has the obligation to provide the services subsequently; accordingly, these
amounts are recognized as contract liabilities.
The period between the transfers of contract liabilities to revenue is usually within one year,
thus, no significant f inancing component ari ses.
(20) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalized as part of the cost of the respective assets. All other borrowing costs are expensed
in the period they occur. Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing o f funds.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
43
(21) Post-employment benefits
A. Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays
fixed contributions into a separate entity and will have no legal or constructive obligation
to pay further amounts. Obligations for contributions to defined contribution pension plans
are recognized as an employee benefit expense in profit or loss during which services are
rendered by employees.
B. Defined benefit plans
Post-employment benefit plan that is classified as a defined benefit plan uses the Projected
Unit Credit Method to measure its obligations and costs based on actuarial assumptions.
Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of
the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest,
are recognized as other comprehensive income with a corresponding debit or credit to
retained earnings in the period in which they occur.
Past service costs are recognized in profit or loss on the earlier of:
(a) the date of the plan amendment or curtailment, and
(b) the date that the Group recognizes restructuring-related costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset, both as determined at the start of the annual reporting period, taking account of any
changes in the net defined benefit liability (asset) during the period as a result of
contribution and benefit payment.
The Group will remeasure the net defined benefit liability (asset) and determine current
service costs and net interest for the remaining reporting period by renewed actuarial
assumptions since the post-employment benefit plan ofthe defined benefit plan be
amended, curtailed or settled.
C. Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as related service is provided
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
44
A liability is recognized for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be
estimated reliably.
(22) Income taxes
Income tax expense (income) is the aggregate amount included in the determination of profit
or loss for the period in respect of current tax and deferred tax.
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxation authorities, using the tax rates
and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Current income tax relating to items recognized in other comprehensive income or directly in
equity is recognized in other comprehensive income or equity and not in profit or loss.
The income tax for undistributed earnings is recognized as income tax expense in the
subsequent year when the distribution proposal is approved by the Shareholders’ meeting.
Deferred tax
Deferred tax is provided on temporary differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset
or liability in a transaction that is not a business combination; at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and at the time of the
transaction, does not give rise to equal taxable and deductible temporary differences.
B. In respect of taxable temporary differences associated with investments in subsidiaries,
associates and interests in joint arrangements, where the timing of the reversal of the
temporary differences can be controlled and it is probable that the temporary differences
will not reverse in the foreseeable future.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
45
Deferred tax assets are recognized for all deductible temporary differences, carry forward of
unused tax credits and unused tax losses, to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilized, except:
A. Where the deferred tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business
combination; at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss; and at the time of the transaction, does not give rise to equal taxable and
deductible temporary differences.
B. In respect of deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint arrangements, deferred tax assets are recognized only to the
extent that it is probable that the temporary differences will reverse in the foreseeable future
and taxable profit will be available against which the temporary differences can be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realized or the liability is settled, based on tax rates and tax laws
that have been enacted or substantively enacted at the reporting date. The measurement of
deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow
from the manner in which the Group expects, at the end of the reporting period, to recover or
settle the carrying amount of its assets and liabilities.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or
loss. Deferred tax items are recognized in correlation to the underlying transaction either in
other comprehensive income or directly in equity. Deferred tax assets are reassessed at each
reporting date and are recognized accordingly.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists
to set off current income tax assets against current income tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.
According to the temporary exception in the International Tax Reform – Pillar Two Model
Rules (Amendments to IAS 12), deferred tax assets and liabilities related to Pillar Two income
tax will not be r ecognized nor disclosed.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
46
5. Significant accounting judgments, estimates and assumptions
The preparation of the Group’s consolidated financial statements require management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period.
However, uncertainty about these assumption and estimate could result in outcomes that require a
material adjustment to the carrying amount of the asset or liability affected in future periods. Please
find the details as below:
(1) Judgement
In the process of applying the Group’s accounting policies, management has made the
following judgements, which have the most significant effect on the amounts recognized in
the consolidated financial statements:
A. Investment properties
Certain properties of the Group comprise a portion that is held to earn rentals or for capital
appreciation and another portion that is owner-occupied. If these portions could be sold
separately, the Group accounts for the portions separately as investment properties and
property, plant and equipment. If the portions could not be sold separately, the property is
classified as investment property in its entirety only if the portion that is owner-occupied
is under 1% of the total property.
(2) Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
A. Fair value of financial instruments
Where the fair value of financial assets and financial liabilities recorded in the balance
sheet cannot be derived from active markets, they are determined using valuation
techniques including the income approach (for example the discounted cash flows model)
or market approach. Changes in assumptions about these factors could affect the reported
fair value of the financial instru ments. Please refer to Note 12 for more details.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
47
B. Impairment of non-financial assets
An impairment exists when the carrying value of an asset or cash generating unit exceeds
its recoverable amount, which is the higher of its fair value less costs to sell and its value
in use. The fair value less costs to sell calculation is based on the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date less incremental costs that would be directly
attributable to the disposal of the asset or cash generating unit. The value in use calculation
is based on a discounted cash flow model. The cash flows projections are derived from the
budget for the next five years and do not include restructuring activities that the Group is
not yet committed to or significant future investments that will enhance the asset’s
performance of the cash generating unit being tested. The recoverable amount is most
sensitive to the discount rate used for the discounted cash flow model as well as the
expected future cash-inflows and the growth rate used for extrapolation purposes.
C. Useful lives and depreciation of vessels
Management determines the estimated useful lives and related depreciation charges for its
vessels. This estimate is based on the historical experience of the actual useful lives of
vessels of similar nature and functions. It could change significantly as a result of technical
innovations and competitor actions in response to severe industry activities. Management
will increase the depreciation charge where useful lives are less than previously estimated
lives, or it will write down technically obsolete or non-strategic assets that have been
abandoned or sold. Management assesses the scrap value according to the characteristics
of the Group’s vessels and the market research from Clarkson and Demolition Market.
The Group determines the depreciation amount of vessels based on the estimated useful
lives and residual values, which are reviewed at each reporting date. The principal
assumptions for the Group’s estimation of the useful lives and residual values include those
related to the mode of operations, government regulations, and scrap value of vessels in
future.
D. Provision for losses from accidents
Provision for losses from accidents is made based on an assessment of the outcome of
negotiations, arbitration or litigation, and the recoverability of losses from insurance
companies, which requires management’s judgment and estimates. Where the actual
outcome or expectation in the future differs from the original estimate, such differences
will have an impact on the carrying amount of the provisions and losses incurred in
accidents/write-back in the period in which such estimate is changed.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
48
E. Fair value of investment property
Where the fair value of investment property disclosed in Note 6 and Note 12 cannot be
obtained from the active market, it is determined using valuation techniques including the
sales comparison approach and the income approach. Changes in assumptions adopted in
the valuation methods could affect the disclosed fair value of investment property and the
result of impairment testing. Please refer to Note 6 and Note 12 for more details.
6. Contents of significant accounts
(1) Cash and cash equivalents

| 31 Decem ber 20 24 | 31 Decem ber 20 23
Cash on hand | $2,502 | $4,224
Demand deposits | 23,667,863 | 21,242,353
T ime deposits | 1 1 1,480,000 | 95,700,000
T otal | $135,150,365 | $1 16,946,577

As at 31 December 2024 and 2023, cash and cash equivalents with carrying amounts of
$36,491,161 and $51,807,798 respectively, were pledged to secure bank loans and were
classified under other financial assets.
(2) Financial assets at fair value through profit or loss

| 31 Decem ber 20 24 | 31 De cembe r 20 23
Mandatorily measured at fair value through profit |  |
or loss: |  |
Structured notes |  |
-Current | $822,100 | $902,700

|  |  |  | For the Y ea r E nded |  |
|  |  |  | 31 Decemb er |  |
|  |  |  | Rea lized | Unrealized | Equity
| Amount in |  | Contract | gains | gains | linked not e
T ype of contract | contract | Counter party | period | (losses) | (losses) | (Y/N)
2024.12.31 |  |  |  |  |  |
10 year USD |  | T aichung Com merci al | 2022.08.05~ |  |  |
range accrual note | $1,000,00 0 | Bank Co., Ltd. | 2032.08.05 | $53,857 | $(80,600) | No

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
49

|  |  |  | For the Y ea r E nded |  |
|  |  |  | 31 Decemb er |  |
|  |  |  | Rea lized | Unrealized | Equity
| Amount in |  | Contract | gains | gains | linked not e
T ype of contract | contract | Counter party | period | (losses) | (losses) | (Y/N)
2023.12.31 |  |  |  |  |  |
10 year USD |  | T aichung Com merci al | 2022.08.05~ |  |  |
range accrual note | $1,000,00 0 | Bank Co., Ltd. | 2032.08.05 | $90,600 | $(8,000) | No

A. The aforementioned financial assets at fair value through profit or loss will be re-evaluated
for their potential sale, due to changes in interest rate spreads in the future. There is no
reasonable assurance that these assets will be held for more than one year; therefore, they
have been reclassified to the current portion.
B. The aforementioned financial assets were not pledged as collateral.
C. For the credit risk information of financial assets at fair value through profit or loss, please
refer to Note 12.
(3) Financial ass ets at fair value th rough other comprehens ive income
31 December 2024 31 December 2023

Investments in debt instruments measured at fair |  |
value through othe r comprehensive income |  |
Bonds |  |
-Current | $9,717,541 | $1 1,864,671

A. For the amount of aforementioned financial assets pledged for bank loans as at 31
December 2024 and 2023, please refer to Note 8.
B. For the credit risk information of financial assets at fair value through other comprehensive
income, please refer to Note 12.
(4) Accounts receivable and account s receivable due from related parties, net

| 31 Decem ber 20 24 | 31 Decem ber 20 23
Accounts r eceivable | $4,942,245 | $4,786,202
Less: loss allowance | (109,972) | (215,996)
Subtotal | 4,832,273 | 4,570,206
Accounts receivable due from related parties | 283,147 | 299,989
Less: loss allowance | - | -
Subtotal | 283,147 | 299,989
Accounts r eceivable, net | $5,115,420 | $4,870,19 5

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
50
The aforementioned accounts receivable is generated from operations and the Group does not
hold any collateral for such trade receivables.
The total carrying amount as at 31 December 2024 and 2023 are $5,225,392 and $5,086,191,
respectively. Please refer to Note 6.(16) for more details on loss allowance of trade receivables
for the years ended 31 December 2024 and 2023. Please refer to Note 12 for more details on
credit risk management.
(5) Inventories

| 31 Decem ber 20 24 | 31 De cembe r 20 23
Fuel | $2,934,774 | $3,689,083

A. The cost of inventories recognized in expenses amounts to $3,260,890 and $6,461,502 for
the years ended 31 December 2024 and 2023, including the write-down of inventories of
$207,341 and the reversal of write-down of inventories of $70,942.
B. Because of the rising prices of the crude oil, the Group had recognized the reversal of write-
down of inventories in the amount of $70,942 for the year ended 31 December 2023.
C. As at 31 December 2024 and 2023, the aforementioned inventories were not pledged as
collateral.
(6) Investments accounted for using the equity method
31 December 2024 31 December 2023

| Carrying | Per c ent a ge of | Carrying | Pe rcen tage of
Investees | amount | owner shi p (%) | amount | owner shi p (%)
Investments in associates: |  |  |  |
Pescadores Investment and |  |  |  |
Development Inc. | $1 1,580,467 | 40% | $1 1,905,1 12 | 40%
Accumulated impairment | (1,677,581) |  | - |
Subtotal | 9,902,886 |  | 1 1,905,1 12 |
Investments in joint venture: |  |  |  |
Wisdom Synergy |  |  |  |
Shipmanagement Pte. Ltd. | 50% | - | - | -
Total | $9,902,886 |  | $1 1,905,1 12 |

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
51
A. Investments in associates
(a) For the purpose of building the Group’s headquarter, the Group has participated in an
investment with Pescadores Co., Ltd. and Mr. Lan Chun Sheng by subscribing for new
shares of Pescadores Investment and Development Inc., of which capital has amounted
to NT$2.08 billion. The Group holds 40% of the shares issued by Pescadores
Investment and Development Inc. As at 31 December 2024, the Group had contributed
capital amounting to NT$832 million and cumulative recognized investment losses
amounting to NT$452 million. Based on available evidence indicating an impairment
in the investment value of Pescadores Investment and Development Inc., the Group
has adjusted the investment to its recoverable amount, resulting in an impairment loss
of $1,712,900 (NT$55 million). This has been recognized in the statement of
comprehensive income, with the recoverable amount measured based on the value in
use at the cash generating unit.
(b) The Group has subscribed for new shares of Pescadores Investment and Development
Inc. in April 2023, of which capital has amounted to NT$1.78 billion, with a par value
of NT$10 per share for 8,000,000 shares. The Group remains 40% interest in the shares
issued by Pescadores Investment and Development Inc. As at 8 September 2023, the
Group had fully paid the amount. As at 6 October 2023, Pescadores Investment and
Development Inc. had completed the alteration of the registered capital amount.
(c) The Group has subscribed for new shares of Pescadores Investment and Development
Inc. in June 2024, of which capital has amounted to NT$2.08 billion, with a par value
of NT$10 per share for 12,000,000 shares. The Group remains 40% interest in the
shares issued by Pescadores Investment and Development Inc. As at 13 August 2024,
the Group had fully paid the amount. As at 5 September 2024, Pescadores Investment
and Development Inc. had completed the alteration of the registered capital amount.
(d) The urban renewal project of Pescadores Investment and Development Inc. was
approved by Taipei City Government on 17 December 2019. The building permit was
obtained on 15 February 2022, while the construction registration was approved on 15
July 2022, the demolition was completed on 28 December 2022, and the
groundbreaking ceremony was held on 13 June 2024.
(e) Reconciliation of the associate’s summarized financial information presented to the
carrying amount of the Group’s inte rest in the assoc iate:
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
52
31 December 2024 31 December 2023

Curr ent assets | $2,507,078 | $916,296
Non-current ass ets | 141,566,717 | 152,646,009
Current liabilities | (84,805) | (122,703,939)
Non-current liabilities | (1 15,037,822) | (1,095,587)
Equity | 28,951,168 | 29,762,779
Percentage of ownership (%) | 40% | 40%
Group’s carrying amount of the investment | $1 1,580,467 | $1 1,905,1 12

| For t he Y ears Ended 31 December |
| 2024 | 2023
Operating revenue | $- | $-
Loss from continuing operati ons | (8,243,860) | (2,680,697)
Other comprehensive income | - | -
T otal comprehensive lo ss | $(8,243,860) | $(2,680,697)

The investments in associates do not have a quoted market price in active market.
B. Investments in joint venture
(a) As at 27 December 2023, The Group entered into a joint venture agreement with
Synergy Marine Pte. Ltd., establishing a joint venture company, Wisdom Synergy
Shipmanagement Pte. Ltd. in Singapore., with a capital amounting to $100,000. Its
business shall be the provision of technical management to owners and charterers. The
Group holds 50% of the shares issued by Wisdom Synergy Shipmanagement Pte. Ltd.
The Group has subscribed for new shares with a par value of $1 per share for 50,000
shares. As at 16 February 2024, the Group had fully paid the amount.
(b) The joint venture with Wisdom Synergy Shipmanagement Pte. Ltd. was not
significant. The summary financial information of joint venture was listed below:

| For the Y ear Ended
| 31 December
| 2024
Loss from continui ng operati ons | $(182,710)
Other comprehensive income (loss) | -
T otal comprehensive income (loss) | $(182,710)

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
53
C. The aforementioned investments in associates had no contingent liabilities, capital
commitments, or guarantees as at 31 December 2024 and 2023.
D. The aforementioned investments in joint venture had no contingent liabilities, capital
commitments, or guarantees as at 31 December 2024. The joint venture cannot distribute
its profits until it obtains the conse nt from all venture partners.
(7) Property, plant and equipment

| 31 Decem ber 20 24 | 31 De cembe r 20 23
Owner occupied property, plant and equipment | $1 1,874,399 | $12,744,400
Property, plant and equipm ent leased ou t under |  |
operating le ases | 2,283,174,650 | 2,355,061,463
T otal | $2,295,049,049 | $2,367,805,863

A. Owner occupied property, plant and equipment

|  |  |  | Foreign exchang e |  | Ending
31 Dece mber 202 4 | Begin ning ba lance | Addi tions | Dispo sals | Re-class ification | differences | balanc e
Cost |  |  |  |  |  |
Land | $11,373,3 92 | $- | $- | $- | $(721,569) | $10,651,823
Buildin gs | 1,577,517 | 9,040 | - | - | (100,269) | 1,486,288
Transpo rtation equipmen t | 92,168 | - | - | - | (5,848) | 86,320
Office eq ui pmen t | 376,146 | 19,558 | - | - | (24,267) | 371,437
Total | 13,419,223 | 28,598 | - | - | (851,953) | 12,595,868
Accu mulated depre ciat ion |  |  |  |  |  |
Buildin gs | 286,857 | 66,143 | - | - | (19,562) | 333,438
Transpo rtation equipmen t | 86,161 | 4,308 | - | - | (5,555) | 84,914
Office eq ui pmen t | 301,805 | 20,891 | - | - | (19,579) | 303,1 17
Total | 674,823 | 91,342 | - | - | (44,696) | 721,469
Net ba lan ce | $12,744,400 | $(62,744) | $- | $- | $(807,257) | $11,874,3 99

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
54

|  |  |  | Foreign exchang e |  | Ending
31 Dece mber 202 3 | Beginni ng ba lance | Additions | Disposa ls | Re-class ification | differences | balanc e
Cost |  |  |  |  |  |
Land | $1 1,369,6 90 | $- | $- | $- | $3,702 | $11,373,3 92
Buildin gs | 1,559,019 | 17,731 | - | - | 767 | 1,577,517
Transpo rtation equipmen t | 92,137 | - | - | - | 31 | 92,168
Office eq ui pmen t | 324,672 | 50,628 | - | - | 846 | 376,146
Total | 13,345,518 | 68,359 | - | - | 5,346 | 13,419,223
Accu mulated depre ciat ion |  |  |  |  |  |
Buildin gs | 218,427 | 67,374 | - | - | 1,056 | 286,857
Transpo rtation equipmen t | 81,629 | 4,440 | - | - | 92 | 86,161
Office eq ui pmen t | 285,163 | 16,31 1 | - | - | 331 | 301,805
Total | 585,219 | 88,125 | - | - | 1,479 | 674,823
Net ba lan ce | $12,760,299 | $(19,766) | $- | $- | $3,867 | $12,744,400

B. Property, plant and equipment leased out under operating leases

|  |  |  | Ending | Foreign exchang | e
31 Dece mber 202 4 | Beginning balan ce | Additions | Dispo sals | Re-class ification | differences | balanc e
Cost |  |  |  |  |  |
Vessels | $3,470,606,591 | $380,429 | $176,985,5 57 | $129,472,2 11 | $(16 5,629) | $3,423,308,04 5
Vessel equipment | 8,794,226 | 1,869,384 | 1,067,059 | - | (831) | 9,595,720
Dry-dock | 38,690,094 | 21,001,534 | 15,099,759 | 1,1 10,000 | (40,304) | 45,661,565
Total | 3,518,090,91 1 | 23,251,347 | 193,152,3 75 | 130,582,21 1 | (206,764) | 3,478,565,33 0
A cc u mulated depr eciation |  |  |  |  |  |
and imp airmen t |  |  |  |  |  |
Vessels | 1,141,505,564 | 121,735,3 34 | 93,345,301 | - | (135,106) | 1,169,760,49 1
Vessel equipment | 4,228,763 | 2,091,930 | 1,067,059 | - | (831) | 5,252,803
Dry-dock | 17,295,121 | 17,695,547 | 14,572,978 | - | (40,304) | 20,377,386
Total | 1,163,029,448 | 141,522,8 11 | 108,985,3 38 | - | (176,241) | 1,195,390,68 0
Net ba lan ce | $2,355,061,463 | $(1 18,271,46 4) | $84,167,037 | $130,582,2 1 1 | $(30,523) | $2,283,174,65 0

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
55

|  |  |  | Ending | Foreign exchang | e
31 Dece mber 202 3 | Beginning balan ce | Additions | Dispo sals | Re-class ificat ion | differences | balanc e
Cost |  |  |  |  |  |
Vessels | $3,628,751,284 | $1,649,821 | $350,494,519 | $190,699,1 55 | $850 | $3,470,606,591
Vessel equipment | 8,725,592 | 2,344,759 | 2,276,129 | - | 4 | 8,794,226
Dry-dock | 37,409,561 | 18,034,794 | 18,768,784 | 2,014,317 | 206 | 38,690,094
Total | 3,674,886,437 | 22,029,374 | 371,539,432 | 192,713,472 | 1,060 | 3,518,090,911
A cc u mulated depr eciation |  |  |  |  |  |
and imp airmen t |  |  |  |  |  |
Vessels | 1,185,065,925 | 124,806,325 | 171,624,849 | 3,256,286 | 1,877 | 1,141,505,564
Vessel equipment | 4,783,053 | 1,721,835 | 2,276,129 | - | 4 | 4,228,763
Dry-dock | 15,164,647 | 16,270,042 | 14,305,237 | 165,271 | 398 | 17,295,121
Total | 1,205,013,625 | 142,798,202 | 188,206,215 | 3,421,557 | 2,279 | 1,163,029,448
Net ba lan ce | $2,469,872,812 | $(120,768,828) | $183,333,2 17 | $189,291,9 15 | $(1,219) | $2,355,061,463

C. As at 31 December 2024 and 2023, the residual value of the vessels amounted to $446,081
thousand and $447,632 thousand, respectively, and the estimated useful lives were ranging
from 16 to 25 years and 16 to 25 years, respectively.
D. As at 31 December 2024 and 2023, the Group had deposited the chartering income of some
vessels, including those still being built, into reserve accounts of lending institutions.
E. For the amount of property, plant and equipment under pledge as at 31 December 2024 and
2023. Please refer to Note 8 for further details.
F. As at 31 December 2024, the Group has entered into certain ship building contracts. Please
refer to Note 9.(1) for further details.
G. For the years ended 31 December 2024 and 2023, the amounts of total interest expense
before capitalization of borrowing costs were $61,549,153 and $68,929,079; the capitalized
interest were $23,255 and $171,726, respectively, with capitalization of rate of borrowing
costs at 1.46%~3.50% and 1.27%~7.20%, respectively.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
56
H. For the years ended 31 December 2024 and 2023, the Group disposed of certain vessels for
total contract price $90,300,000 and $190,375,000, ¥2,100,000,000, which resulted in gains
on disposals of property, plant and equipment of $31,267,595 and $53,876,999,
respectively, after deducting commissions.
(8) Investment property, net
The Group’s investment property is owned investment properties. The Group has entered into
commercial property leases on its owned investment properties with terms within two years.

|  |  |  | Foreign exch ange |  | Ending
31 Dece mber 202 4 | Beginning balan ce | Additions | Disposals | Re-classification | differences | balanc e
Cost |  |  |  |  |  |
Land | $2,135,804 | $- | $- | $- | $(135,503) | $2,000,301
Buildings | 256,781 | - | - | - | (16,291) | 240,490
Total | 2,392,585 | - | - | - | (151,794) | 2,240,791
Accumulat ed |  |  |  |  |  |
depreciation |  |  |  |  |  |
Buildings | 40,583 | 8,467 | - | - | (2,749) | 46,301
Total | 40,583 | 8,467 | - | - | (2,749) | 46,301
Net balan ce | $2,352,002 | $(8,467) | $- | $- | $(149,045) | $2,194,490

|  |  |  | Foreign exch ange |  | Ending
31 Dece mber 202 3 | Begin ning ba lance | Additions | Dispo sals | Re-classification | differences | balanc e
Cost |  |  |  |  |  |
Land | $2,135,108 | $- | $- | $- | $696 | $2,135,804
Buildings | 256,698 | - | - | - | 83 | 256,781
Total | 2,391,806 | - | - | - | 779 | 2,392,585
Accumulat ed |  |  |  |  |  |
depreciation |  |  |  |  |  |
Buildings | 31,718 | 8,727 | - | - | 138 | 40,583
Total | 31,718 | 8,727 | - | - | 138 | 40,583
Net balan ce | $2,360,088 | $(8,727) | $- | $- | $641 | $2,352,00 2

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
57

| For t he Y ears Ended 31 December |
| 2024 | 2023
Rental income from investment property | $98,240 | $102,579
Less: |  |
Direct operating expens es from investment |  |
property generating r ental income | (37,033) | (36,339)
Direct operating expens es from investment |  |
property not generating rental income | - | -
Total | $61,207 | $66,240

A. The Group acquired land and buildings located at the 3th subsection, Da-an district, Taipei
for $15,032,027 in May 2019 for the use of office space. As all the rental agreements with
existing lessees, for approximately 37.41% of the total pings, have been expired in March
2020, the investment property was transferred to property, plant and equipment. On 14
September 2020, the Group leased out unused office space for approximately 15.81% of
the total pings of the property, which had been transferred from property, plant and
equipment to investment property.
B. For the amount of investment property under pledge as at 31 December 2024 and 2023,
please refer to Note 8.
C. Investment properties held by the Group are not measured at fair value but for which the
fair value is disclosed. The fair value measurements of the investment properties are
categorized within Level 3. The fair value of investment properties is $2,531,838 and
$2,661,916 as at 31 December 2024 and 2023, respectively. The fair value has been
determined based on valuations performed by an independent valuer and rental rates. The
valuation methods used are sales comparison approach and income approach.
(9) Other non-current assets

| 31 Decem ber 20 24 | 31 De cembe r 20 23
Prepayment for vessels | $49,528,000 | $64,273,500
Deferred expenses | 34,982 | 36,167
Carbon credits intangible asset | 430,032 | -
T otal | $49,993,014 | $64,309,667

Prepayment for vessels is the amount prepaid for building new vessels. The Group had entered
into ship building contracts, please refer to Note 9.(1).
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
58
(10) Borrowings

| 31 Decem ber 20 24 | 31 Decem ber 20 23
Bank loans |  |
－ Short-term borrowings | $21,470,519 | $30,527,226
－ Long-term borrowi ngs (incl uding cur ren t portion) | $799,891,874 | $962,414,725

A. Terms and conditions of outstanding loans were as follows:

Loans | Currency | Nom inal in ter est ra tes | Maturity date | Amount
31 December 2024 |  |  |  |
Uns ecured | USD | 5.32%~7.00% | 2023.06.05~2026.06.05 | $4,188,75 0
| JPY | 0.90%~1.40% | 2023.09.01~2026.08.31 | 10,434,00 3
| CHF | 2.87% | 2024.07.10~2025.07.10 | 18,205,892
| TWD | 2.22% | 2024.05.31~2029.05.31 | 1,067,562
Secured | USD | 5.09%~7.71% | 2012.01.18~2033.06.05 | 488,489,908
| JPY | 0.60%~2.42% | 2010.08.03~2031.10.17 | 216,649,5 50
| CHF | 2.02%~3.50% | 2024.02.22~2034.02.22 | 74,529,26 0
| TWD | 2.22% | 2024.05.30~2029.05.30 | 7,797,468
Total |  |  |  | $821,36 2,393

Loans | Currency | Nomina l in teres t ra tes | Maturity date | Amount
31 December 2023 |  |  |  |
Uns ecured | USD | 5.96%~6.91% | 2022.09.30~2026.06.05 | $20,399,5 83
| JPY | 0.88%~0.99% | 2023.09.01~2025.08.31 | 14,850,43 5
Secured | USD | 5.16%~7.75% | 2012.01.18~2033.06.05 | 647,145,2 36
| JPY | 0.60%~1.98% | 2010.08.03~2031.10.17 | 301,585,9 41
| TWD | 1.98%~2.11% | 2019.05.31~2024.05.31 | 8,960,756
Total |  |  |  | $992,94 1,951

B. Future settlements of long-term borrowings were as follows:
Maturity period 31 December 2024 31 December 2023

W ithin one year | $173,686,399 | $214,728,297
Beyond one year and up to fiv e years | 393,756,256 | 51 1,233,498
More than five years | 232,449,219 | 236,452,930
T otal | $799,891,874 | $962,414,725

(a) As at 31 December 2024 and 2023, WML had provided financing guarantees for its
subsidiaries of $708,188 thousand and $840,720 thousand, respectively.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
59
(b) As at 31 December 2024 and 2023, the Group had unused credit facilities of $134,746
thousand and $100,930 thousand, respectively.
(c) The Group’s covenants under the loan agreements are as follows:
i. Loan lenders shall be notified of any significant movement of the Group’s
shareholder’s equity.
ii. In certain circumstances, the Group retains the option to select the currency to be
used for loan or debt settlement.
iii. Some equity shares of the Company’s subsidiaries were pledged to secure bank
loans.
(d) As at 31 December 2024 and 2023, WML and the Company had provided financial
guarantees for the Company’s subsidiaries. Please refer to Note 9.(2) for further
details.
(11) Bonds payable
31 December 2024 31 December 2023
Secured bonds $30,197,916 $45,059,803
Less: current portion - (45,059,803)
Net $30,197,916 $-
The Group’s overseas secured bonds were as follows:
31 December 2024 31 December 2023
First R.O.C. secured bonds issued in 2019
Bonds issued $44,814,755 $44,814,755
Accumulated converted amount - (20,811)
Valuation on bonds payable (2,052,843) 265,859
Repayment of principal at maturity (42,761,912) -
Net - 45,059,803
Less: current portion of bonds payable - (45,059,803)
Subtotal - -
First R.O.C. secured bonds issued in 2024
Bonds issued 30,888,031 -
Accumulated converted amount (307,686) -
Valuation on bonds payable (382,429) -
Net 30,197,916 -
Less: current portion of bonds payable - -
Subtotal 30,197,916 -
Total $30,197,916 $-
Interest expense $586,853 $530,856
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
60
The Group issued five-year secured bonds with a face value of NT$1,385,000 thousand for
the first time on 7 May 2019. The interest is paid every year at the annual interest rate of
0.86%.
The Group issued five-year secured bonds with a face value of NT$1,000,000 thousand for
the first time on 3 May 2024. The interest is paid every year at the annual interest rate of
1.75%.
(12) Leases
A. Group as a lessor
Please refer to Notes 6.(7) and 6.(8) for relevant disclosure of property, plant and equipment
for operating leases and the Group’s owned investment properties. Leases of owned
investment properties and property, plant and equipment are classified as operating leases
as they do not transfer substantially all the risks and rewards incidental to ownership of
underlying assets.

| For t he Y ears Ended 31 December |
| 2024 | 2023
Lease income for operating leas es |  |
Income relating to fixed lease payments and |  |
variable lease payments that depend on an |  |
index or a r ate | $627,191,948 | $535,042,547

For operating leases entered by the Group, the undiscounted lease payments to be received
and a total of the amounts for the remaining years as at 31 December 2024 and 2023 are as
follows:

| 31 Decem ber 20 24 | 31 Decem be r 20 23
Not later than one y ear | $228,241,046 | $471,442,640
Later than one year but not later t han t wo years | 29,129,926 | 128,272,681
L ater than tw o y ears bu t n ot la te r than th ree y ears | 1,391,623 | 29,214,1 1 1
L ater than th ree y ears bu t not later th an fou r year s | 40,128 | -
Total | $258,762,595 | $628,969,560

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
61
B. Group as a lessee
The Group leases various assets, including vessels and buildings. The lease terms range
from 3 to 15 years.
The effect that leases have on the financial position, financial performance and cash flows
of the Group are as follows:
(a) Amounts recognized in the balance sheet
i. Right-of-use assets
The carrying amount of right-of-use assets
31 December 2024 31 December 2023

Vessel s | $176,985,551 | $185,909,635
Buildings | 7 6 2,3 5 5 | 448,931
Total | $177,747,906 | $186,358,566

During the years ended 31 December 2024 and 2023, the additions to right-of-use
assets of the Group amounting to $2,122,616 and $28,183,768, respectively.
ii. Lease liabilities

| 31 Decem ber 20 24 | 31 De cem ber 20 23
Lease liabilities |  |
Current | $28,488,199 | $13,391,453
Non-current | 93,931,608 | 130,152,801
Total | $122,419,807 | $143,544,254

(i) Please refer to Note 6.(18).D for the interest on lease liabilities recognized
during the years ended 31 December 2024 and 2023 and refer to Note 12.(5)
liquidity risk management for the maturity analysis for lease liabilities.
(ii) Please refer to Note 7 for further details of lease liabilities recognized for
related party transactions.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
62
(b) Amounts recognized in the statement of comprehensive income
Depreciation charge for right-of-use assets

| For t he Y ears Ended 31 December |
| 2024 | 2023
V essels | $10,317,155 | $9,717,931
Buildings | 349,004 | 352,892
T otal | $10,666,159 | $10,070,823

(c) Income and costs relating to leasing activities
For the Years Ended 31 December

| 2024 | 2023
The expense relating to short-term leases | $13,659 | $13,081
The expense relating to leases of low- | value |
ass et s (Not including the expenses |  |
relating to short-term leases of low- |  |
value assets) | 6,540 | 6,548
The expense relating to variable lease |  |
payments not included in the |  |
meas urement of lease liabilities | 502 | 477
Income from subleasing right-of-use asse t s | 45,424,572 | 38,712,135
Los ses arising from sale and leaseback |  |
transactions | 2,152,903 | 385,935

(d) Cash outflow relating to leasing activities
For the years ended 31 December 2024 and 2023, the Group’s total cash outflows for
leases amounting to $17,001,066 and $23,063,605, respectively.
(e) Sale and leaseback transaction
i. As at 31 December 2024 and 2023, the Group engaged in vessels sale and
leaseback transactions based on operating performance and investment strategies.
The sale and leaseback transactions resulted in financial leases, and the related
information of these transactions was as follows:
31 December 2024 Vessel Lease term Rent Contract price Interest rates

(i) | 7 years fro m 2018.09 | ¥28,928,000/q uarte r | ¥810,000,0 00 | 1.50%
(ii) | 7 years fr om 2021.11 | ¥45,900,000/q uarter | ¥1,485,000,00 0 | TI BOR+1.35%
(iii) | 7 years fr om 2023.01 | ¥64,162,300/quarte r | ¥1,941,800,00 0 | TIBO R+1.00%
(iv) | 7.5 ye ar s fr om 2024.0 3 | $680,570/qu arte r | $16,500,000 | SO F R+1.48%
(v) | 6.9 year s from 20 24.0 3 | $711,400/qua rter | $15,840,000 | SOFR+1.38%

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
63
31 December 2023 Vessel Lease term Rent Contract price Interest rates

(i) | 7 years fro m 2018.09 | ¥28,928,000/q uarte r | ¥810,000,0 00 | 1.50%
(ii) | 7 years fr om 2021.11 | ¥45,900,000/q uarter | ¥1,485,000,00 0 | TIBO R+1.35%
(iii) | 7 years fr om 2023.01 | ¥64,162,300/quarte r | ¥1,941,800,00 0 | TIBOR+1.00%

ii. Future non-cancellable chartering payments as at 31 Dece mbe r 2024 and 2023
were as follows:
31 December 2024 31 December 2023

Within one year | $6,796,430 | $3,705,874
Beyond one year and up to five years | 27,749,767 | 13,758,842
More than five years | 27,709,284 | 9,167,061
Total | $62,255,481 | $26,631,777

iii. Based on the agreements of the sale and leaseback transactions, the Group has the
option to buy the vessels at maturity date and can acquire the lease vessels when
the Group makes the payment.
iv. Please refer to Note 7 for further details of sale and leaseback transactions
regarding related parties.
(13) Post-employment defined benefit plan
A. Defined contribution plans
WELL and WII provide cash contribution at the rate of 6% of the employee’s monthly
wages to the Labor Pension personal account of the Bureau of the Labor Insurance in
accordance with the provisions of the Labor Pension Act.
B. Defined benefit plans
WII also have a defined benefit plan covering all regular employees in accordance with the
Labor Standards Act. This plan provides for a pension benefit payment of 2 units for each
year of service. Each unit of retirement payment referred to above shall be computed as the
average monthly salary for the last six months at the time of approved retirement. Under
this plan, the Company contributes monthly an amount equal to 2% of gross salary to a
pension fund, which is deposited into a designated depository account with the Bank of
T aiwan.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
64
(14) Equities
A. Capital
(a) On 21 October 2008, the Company was incorporated with a registered capital of NT
$3,300,000 thousand. In January 2009, based on the approval of the board of directors,
the Company issued shares of stock worth NT$2,000,000 thousand, divided into
200,000 thousand shares with par value of NT$10 per share for listing in Taiwan
purpose.
As at 31 December 2024 and 2023, the total outstanding capital of the Company both
amounted to NT$7,464,092 thousand, consisting of 746,409 thousand shares with a
par value of NT$10 per share.
(b) On 12 May 2023, the shareholders resolved at their meeting to appropriate the 2022
earnings, by distributing the cash dividends from retained earnings at NT$6.50 per
share. The record date of cash dividends was 5 June 2023, and the distribution date
was 28 June 2023.
(c) On 31 May 2024, the shareholders resolved at their meeting to appropriate the 2023
earnings, by distributing the cash dividends from retained earnings at NT$2.75 per
share. The record date of cash dividends was 6 July 2024, and the distribution date was
26 July 2024.
B. Capital surplus
The components of the capital surplus were as follows:

| 31 December 2024 | 31 December 2023
Additional paid-in capital | $1,237,415 | $1,237,415

C. Retained earnings
(a) The Company’s distribution of directors’ and supervisors’ remuneration is based on
the level of earnings and the resolution of the board of directors. Distributions of
directors’ and supervisors’ remuneration are classified into cost or operating expense.
Any difference between the amounts approved in the shareholders’ meeting and those
recognized in the financial statements, if any, is accounted for as a change in
accounting estimates and is charged to profit or los s.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
65
(b) On 31 May 2024 and 12 May 2023, the Company’s shareholders resolved at the
shareholder’s meeting to appropriate the 2023 and 2022 earnings, respectively. These
earnings were distributed as dividends and remuneration to directors and supervisors
as follows:
Unit: NTD
For the Years Ended 31 December

Item | 2023 | 2022
Cash dividends from retained earnings-per share | $2.75 | $6.50

For the amount and estimate basis of Directors’ and supervisors’ remuneration please
refer to Note 6.(17).E.
(15) Operating revenue

| For t he Y ears Ended 31 December |
| 2024 | 2023
Revenue fr om contracts with customers |  |
Freight revenue | $- | $1,561,136
Vessel management revenue | 706,437 | 656,869
Subtotal | 706,437 | 2,218,005
Hire revenue (Note) |  |
Hire revenue-long term | 560,405,345 | 457,146,288
Hire revenue-short term | 66,621,960 | 77,734,692
Subtotal | 627,027,305 | 534,880,980
Other operating revenue | 6,697,428 | 8,431,304
Total | $634,431,170 | $545,530,289

Note: The Group accounted the hire revenue with lease terms within six months for hire
revenue-short term.
Analysis of revenue from contracts with customers during the years ended 31 December 2024
and 2023 are as follows:
A. Disaggregation of revenue

| For t he Y ears Ended 31 December |
| 2024 | 2023
Rendering of services | $706,437 | $2,218,005
Timing o f revenue recognition: |  |
Over time | $706,437 | $2,218,005

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
66
B. Contract balances
None.
C. Transaction price allocated to unsatisfied performance obligations
No disclosure of transaction price allocated to unsatisfied performance obligation as the
duration of all contracts with customers is within one year.
D. Assets recognized from costs to fulfill a contract
None.
(16) Expected credit losses

| For t he Y ears Ended 31 December |
| 2024 | 2023
Operating expenses – expected credit losses |  |
Accounts r eceivable | $280,486 | $286,890

Please refer to Note 12 for more details on credit risk.
The Group measures the loss allowance of its accounts receivable at an amount equal to
lifetime expected credit losses. The assessment of the Group’s loss allowance as at 31
December 2024 and 2023 are as follows:
Considering counterparties credit rating, industry characteristics and past experiences, the loss
allowance of accounts receivable is measured as a single group by using a provision matrix.
Details for the provision matrix are as follows:

31 Dece mber 2024 |  |  |  | Past du e |  |  |
| Not yet d ue | Under 6 mont hs | 7~12 mont hs | 13~18 mo nt hs | 19~24 mo nt hs | Over 24 mont hs | T otal
Gross carryi ng amou nt | $3,756,8 71 | $369,4 04 | $239,9 68 | $417,3 24 | $441,8 25 | $- | $5,225,3 92
Loss ratio | 0.57% | 3.70% | 4.53% | 6.10% | 8.70% | 100% |
Lifetime exp ected credit |  |  |  |  |  |  |
losses | 21,537 | 13,668 | 10,871 | 25,457 | 38,439 | - | 109,97 2
Net carryi ng amount | $3,735,3 34 | $355,7 36 | $229,097 | $391,867 | $403,3 86 | $- | $5,1 15,420

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
67

31 Dece mber 2023 |  |  |  | Past du e |  |  |
| Not yet d ue | Under 6 mont hs | 7~12 months | 13~18 mo nt hs | 19~24 mo nt hs | Over 24 mont hs | T otal
Gross carryi ng amou nt | $3,149,1 95 | $472,1 03 | $539,9 98 | $900,4 49 | $- | $24,44 6 | $5,086,1 91
Loss ratio | 0.87% | 7.77% | 8.64% | 8.98% | 8.70% | 100% |
Lifetime exp ected credit |  |  |  |  |  |  |
losses | 27,352 | 36,682 | 46,656 | 80,860 | - | 24,446 | 215,99 6
Net carryi ng amount | $3,121,8 43 | $435,4 21 | $493,342 | $819,589 | $- | $- | $4,870,195

The movement in the provision for impairment of accounts receivable during the years ended
31 December 2024 and 2023 is as follows:

| For t he Y ears Ended 31 December |
| 2024 | 2023
Beginning balance | $215,996 | $31 1,564
Addition f or the cu rrent period | 280,486 | 286,890
Write off for past due ove r 25 months | (386,510) | (382,458)
Ending balance | $109,972 | $215,996

(17) Operating costs
For the Years Ended 31 December

| 2024 | 2023
Depreciation | $152,050,003 | $152,744,562
Cost of materials | 58,31 1,885 | 62,416,368
Expenses for chartering services | 50,275,843 | 42,789,337
Wages and personnel expense s | 145,065,097 | 158,263,121
Other operating costs | 1 1,977,503 | 12,401,905
Total | $417,680,331 | $428,615,293

A. Cost of materials

| For t he Y ears Ended 31 December |
| 2024 | 2023
Fuel | $3,260,890 | $6,461,502
Lubricants | 1 1,481,675 | 12,169,891
Materials | 1 1,937,087 | 12,897,183
Spare parts | 17,069,437 | 17,051,451
Inspection fees | 8,058,489 | 8,417,455
Repairs and m aintenance | 4,879,981 | 3,778,61 1
Paints | 1,624,326 | 1,640,275
Total | $58,311,885 | $62,416,368

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
68
B. Expenses for chartering services

| For t he Y ears Ended 31 December |
| 2024 | 2023
Commissions | $32,484,812 | $27,323,438
Management f ee | 8,249,050 | 5,102,583
Port charges | 843,797 | 1,189,857
Agency costs | 415,923 | 677,906
Dispatch expense s | 8,900 | 78,451
Postage expenses | 3,029,720 | 2,999,980
Others | 5,225,782 | 5,417,122
Carbon fee | 17,859 | -
Total | $50,275,843 | $42,789,337

C. Wages and personnel expenses

| For t he Y ears Ended 31 December |
| 2024 | 2023
Crew wages | $1 18,468,897 | $121,644,806
Insurance expenses | 1 1,809,752 | 13,209,369
Food and meals | 8,405,585 | 8,749,520
Crew travel fees | 3,561,223 | 1 1,075,793
Bonus | 2,649,070 | 3,406,722
Pension | 170,570 | 176,91 1
Total | $145,065,097 | $158,263,121

D. Other operating costs
For the Years Ended 31 December

| 2024 | 2023
Hull and m achinery insurance | $9,327,986 | $10,067,548
Compensation for damage | 1,710,728 | 1,184,915
Lease payments | 2,803 | 2,889
Others | 935,986 | 1,146,553
Total | $1 1,977,503 | $12,401,905

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
69
E. Summary statement of employee benefits, depreciation and amortization expenses by
function for the years ended 31 December 2024 and 2023:

|  |  | For the Y ears Ended 31 Dec ember |  |  |
|  | 2024 |  |  | 2023 |
| Operat ing | Operat ing | Total | Operat ing | Operat ing | Total
| costs | expen ses | amoun t | costs | expen ses | amoun t
Employ ee ben efi ts expens e |  |  |  |  |  |
Salar ie s | $121,117,9 67 | $2,620,000 | $123,737,9 67 | $125,051,5 28 | $2,036,179 | $127,087,7 07
Insurance expen ses | 11,809,752 | 153,281 | 11,963,033 | 13,209,369 | 157,241 | 13,366,610
Pension | 170,570 | 68,141 | 238,711 | 176,911 | 65,542 | 242,453
Othe r employe e bene fits |  |  |  |  |  |
expen se | 8,406,753 | 71,323 | 8,478,076 | 8,755,714 | 66,222 | 8,821,936
Depreciat ion | 152,050,003 | 238,776 | 152,288,779 | 152,744,562 | 221,315 | 152,965,877
Amortizat ion | - | 19,318 | 19,318 | - | 17,489 | 17,489

The differences between the actual appropriations of 2023 and 2022 earnings for directors
and supervisors’ remunerations as approved at the shareholders’ meeting and the amounts
recognized in the financial statements were as follows:

|  | 2023 |
| The actual |  |
| appropriatio n | The amoun t |
| according to the | recog ni zed in t he |
| sharehold ers meeting | financial report | Differ ence
Directors’ a n d superviso rs’ remuner ation | $382,177 | $382,288 | $(1 1 1)

|  | 2022 |
| The actual |  |
| appropriatio n | The amoun t |
| according to the | recog ni zed in t he |
| sharehold ers meeting | financial report | Differ ence
Directors’ a n d superviso rs’ remuner ation | $1,233,969 | $1,233,969 | $-

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
70
The aforementioned difference for the years ended 31 December 2023 and 2022 was
accounted for as a change in accounting estimates and was charged to profit or loss for the
years ended 31 December 2024 and 2023.
The Group estimated the amounts of the remuneration to directors and supervisors’ to be
$586,390 and $382,288 for the years ended 31 December 2024 and 2023, respectively.
These amounts were calculated based on the Company’s net profit for the years ended 31
December 2024 and 2023, and were estimated according to the earnings allocation method,
priority and factors for employee benefits and key management personnel compensation as
stated under the Articles of Association. These benefits were expensed under salaries
expense for the years ended 31 December 2024 and 2023.
Information on the board of directors’ recommendations and shareholders’ approval
regarding the employee bonuses and remuneration to directors and supervisors can be
obtained from the “Market Observation Post System” on the website of the TWSE.
(18) Non-operating income and expenses
A. Interest income

| For t he Y ears Ended 31 December |
| 2024 | 2023
Interest income |  |
Bank deposits | $6,672,045 | $6,047,909
Financial asse ts at fair value th rough other |  |
comprehensive income | 567,480 | 81 1,318
T otal | $7,239,525 | $6,859,227

B. Other income
For the Years Ended 31 December

| 2024 | 2023
Other income, others | $320,167 | $1,078,502

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
71
C. Other gains and losses

| For t he Y ears Ended 31 December |
| 2024 | 2023
Gains on disposals of property, plant and |  |
equipment | $31,267,595 | $53,876,999
Losses on disposals of investments | (1 1,418) | (1,402)
Losses fr om lease modi fication | - | (1,358)
Foreign exchange gains | 6,216,483 | 3,929,478
(Losses) gains on financial assets at fair value |  |
through profit or loss (Note) | (26,743) | 713,053
Other impairment loss | (1,712,900) | -
Subtotal | 35,733,017 | 58,516,770
Miscellaneous expenses | (1,208,412) | (2,452,822)
T otal | $34,524,605 | $56,063,948

Note: Balances were arising from financial assets mandatorily measured at fair value
through profit or loss, including valuation adjustment, interest income, exchange
difference, etc.
D. Interest expense

| For t he Y ears Ended 31 December |
| 2024 | 2023
Interest on borrowings from bank | $47,084,255 | $54,404,761
Interest on bonds payable | 586,853 | 530,856
Interest on lease liabiliti es | 4,024,244 | 4,203,844
Interest on long-term accounts payable |  |
(including from related parties) | 9,830,546 | 9,617,892
T otal interest expense | $61,525,898 | $68,757,35 3

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
72
(19) Components of other comprehensive income (loss)
For the year ended 31 December 2024

|  | The orig inal |  |  | Other
|  | cost that wa s | Other | Income tax | compreh ensive
| Arising du ring | removed to | compreh ensive | income | income, net
| the pe riod | hedge d it em | inco me (loss) | (expens es) | of tax
Compone nts of ot her compr ehensi v e income that |  |  |  |  |
will not be recla ssified to pro fit or los s: |  |  |  |  |
Remea surem ents of defined benefit plan s | $25,49 1 | $- | $25,49 1 | $(5,098) | $20,39 3
Compone nts of ot her compr ehensi v e income that |  |  |  |  |
will be reclass ified to pro fit or loss: |  |  |  |  |
Exch ange differe nce s on translation of foreign |  |  |  |  |
financial st atements | 8,102,32 0 | - | 8,102,32 0 | - | 8,102,32 0
Unrea lized ga ins (losse s) from inv estments in |  |  |  |  |
deb t instrumen ts measu red at fair value |  |  |  |  |
throu gh other co mprehen sive incom e | 157,61 6 | - | 157,616 | - | 157,616
Total of oth er comp rehen sive inco me (loss) | $8,285,427 | $- | $8,285,4 27 | $(5,098) | $8,280,3 29

For the year ended 31 December 2023

|  | The orig inal |  |  | Other
|  | cost that wa s | Other | Income tax | compreh ensive
| Arising du ring | removed to | compreh ensive | income | income, net
| the pe riod | hedge d it em | inco me (loss) | (expens es) | of tax
Compone nts of ot her compr ehensi v e income that |  |  |  |  |
will not be recla ssified to pro fit or los s: |  |  |  |  |
Remea surem ents of defined benefit plan s | $177,3 01 | $- | $177,301 | $1,001 | $178,302
Compone nts of ot her compr ehensi v e income that |  |  |  |  |
will be reclass ified to pro fit or loss: |  |  |  |  |
Exch ange differe nce s on translation of foreign |  |  |  |  |
financial st atements | (15,346,0 26) | - | (15,346,026) | - | (15,346,0 26)
Unrea lized ga ins (losse s) from inv estments in |  |  |  |  |
deb t instrumen ts measu red at fair value |  |  |  |  |
throu gh other co mprehen sive incom e | 345,83 7 | - | 345,837 | - | 345,837
Total of oth er comp rehen sive inco me (loss) | $(14,822,888) | $- | $(14,82 2,888) | $1,001 | $(14,82 1,887)

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
73
(20) Income tax
A. Pursuant to the rules and regulations of the local authority, the Group income tax includes
WML and its subsidiaries and the Company’s subsidiaries in Taiwan. The remaining
subsidiary has no tax obligations pursuant to the rules and regulations of the local authority.
B. For the years ended 31 December 2024 and 2023, the components of income tax expenses
(income) of WML and its subsidiaries and the Company’s subsidiaries in Taiwan were as
follows:
Income tax expense (income) recognized in profit or loss

| For t he Y ears Ended 31 December |
| 2024 | 2023
Current income tax expense: |  |
Current income tax charge | $662,654 | $761,392
Deferred tax expense (income): |  |
Deferred tax expense (income) relating to |  |
origination and reversal of temporary |  |
differences | 26,718 | 25,827
Total income tax expense | $689,372 | $787,219

Income tax relating to components of other comprehensive income

| For the Years Ended 31 December |
| 2024 | 2023
Deferred tax expense (income): |  |
Remeasurements of the defined benefit plans | $5,098 | $(1,001)
Income tax r elating to components of other |  |
comprehensive income | $5,098 | $(1,001)

Reconciliation between tax expense and the product of accounting profit multiplied by
applicable tax rates is as follows:
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
74

| For the Years Ended 31 December |
| 2024 | 2023
Tax at the domestic rates applicable to profits in |  |
the country concerned | $(424,265) | $366,742
Tax effect of revenues exempt fr om taxation |  |
and expenses not deductible for tax purposes | 1,055,828 | 331,518
Tax effect of deferred tax assets/liabilities | 57,809 | 87,877
Corporate income surtax on undistributed |  |
retained earnings | - | 1,082
Total income ta x expense recognized in p rofit o r loss | $689,372 | $787,219

Deferred tax assets (liabilities) relate to the following:
(a) Unrecognized deferred tax assets
Unrecognized deferred tax assets of the Group are as follows:

| 31 December 2024 | 31 December 2023
Deductible temporary difference |  |
Tax loss | $2,882,881 | $2,745,687
Impairment loss | 420,180 | 547,972
Total | $3,303,061 | $3,293,659

The ROC Income Tax Act allows net losses, as assessed by the tax authorities, to offset
taxable income over a period of ten years for local tax reporting purposes and
Impairment loss.
The Group’s estimated unused tax effects of the loss carry-forwards as at 31 December
2024:
Year Unused Amount Expiration Year

2017 assessed amount | $48,221 | 2027
2019 assessed amount | 446,780 | 2029
2020 assessed amount | 478,288 | 2030
2021 assessed amount | 468,361 | 2031
2022 assessed amount | 554,820 | 2032
2023 filed amount | 510,301 | 2033
2024 filed amount | 376,1 10 | 2034
| $2,882,881 |

English Translation of Consolidated Financial Statements Originally Issued in Chinese
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
75
(b) Recognized deferred tax assets (liabilities)
For the years ended 31 December 2024 and 2023, changes in deferred tax assets and
liabilities are as follows:

| Defined |  |
| benefit plans | Other | Total
Deferred tax assets (liabilities): |  |  |
Balance, 1 January 2024 | $(1,392) | $19,969 | $18,577
(Debit) credit in income statement | (1,069) | (25,649) | (26,718)
Relating to components of other |  |  |
comprehensive income | (5,098) | - | (5,098)
Exchange rate effects | 215 | (738) | (523)
Balance, 31 December 2024 | $(7,344) | $(6,418) | $(13,762)
Balance, 1 January 2023 | $35,062 | $8,689 | $43,751
(Debit) credit in income statement | (36,941) | 11,114 | (25,827)
Relating to components of other |  |  |
comprehensive income | 1,001 | - | 1,001
Exchange rate effects | (514) | 166 | (348)
Balance, 31 December 2023 | $(1,392) | $19,969 | $18,577

Reflected in balance sheet as follows:

| 31 December 2024 | 31 December 2023
Deferred tax assets | $10,997 | $32,351
Deferred tax l iabilities | $24,759 | $13,774

C. The assessment of income tax returns
As at 31 December 2024, the assessment of the income tax returns of the Company and its
subsidiaries is as follows:

| The assess ment of income tax retur ns
W isdom Marine International Inc. (WII) | Ass essed and approved up to 2022
W ell Shi p management and Maritime |
Consultant Co., Ltd. (WELL) | Ass essed and approved up to 2022
Huian Ship Mana gement Co., L td. | Ass e ssed and approved up to 2022

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WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
76
(21) Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the period
attributable to ordinary equity holders of the parent entity by the weighted average number of
ordinary shares outstanding during the period.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to
ordinary equity holders of the parent entity (after adjusting for interest on the convertible
bonds and etc.) by the weighted average number of ordinary shares outstanding during the
period plus the weighted average number of ordinary shares that would be issued on
conversion of all the dilutive potential ordinary shares into ordinary shares.

| For the Years Ended 31 December |
| 2024 | 2023
Basic/diluted earnings per share |  |
Profit attributable to ordinary shareholders | $187,841,879 | $104,966,718
W eighted average number of ordinary shares | 746,409,199 | 746,409,199
Basic/diluted earnings per share | $0.25 | $0.14

There have been no other transactions involving ordinary shares or potential ordinary shares
between the reporting date and the date of completion of the financial statements.
7. Related party transactions
(1) Names and Relationships of Related Parties
Name of Related Party Relationship
Lan Chun Sheng Chairman
Pescadores Merchandise Co., Ltd Other Related Party
Pescadores Travel Co., Ltd Other Related Party
Wisdom Marine Agency Co., Ltd. Other Related Party
Hui-wen Investment Co., Ltd Other Related Party
Brave Line Co., Ltd. Other Related Party
YOKO CO., LTD. Other Related Party
Benefit Transport S.A. Other Related Party
Samurai Investment S.A. Other Related Party
Fortunate Transport S.A. Other Related Party
Asiaeuro Investment S.A. Other Related Party
Wisdom Synergy Shipmanagement Pte. Ltd. Joint Venture
Genius Star Management Consulting Co., Ltd. Other Related Party
Oceanlance Maritime Co., Ltd. Other Related Party
Pescadores Investment and Development Inc. Associates
Directors, President and Vice President Key Management
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
77
Note 1: The name of related party with balance or amount of single transaction over 10% of
the total transaction balance or amount would be disclosed separately.
Note 2: Wisdom Synergy Shipmanagement Pte. Ltd. has become our joint venture since 16
February 2024.
(2) Significant transactions with related parties
A. Hire revenue
For the years ended 31 December 2024 and 2023, the Group entered into time chartering
with other related parties as follows:
For the Years Ended 31 December

Related party | 2024 | 2023
Other related parties | $1,704,457 | $1,854,479

The price of time chartering with other related parties was determined based on the market
rate and operating costs of the Group.
B. Services received / rendered
For the years ended 31 December 2024 and 2023, the Group received services from (or
rendered services to) related parties as follows:

Related party | Item | Amount
For the Yea r Ended |  |
31 December 2024 |  |
Other related par ties | Vessel manage ment service income | $(705,502)
″ | Other income (ticket revenue and other income-other) | (109,950)
″ | Commissions | 6,632,039
″ | Other expenses (business trave l expenses, agency fees, |
| inspection fees, manage ment consulting fees and etc.) | 502,849
″ | Operating expenses (business trave l expenses, |
| entertainment expense s and etc.) | 85,006
″ | Other income, others | (560)
″ | Ballast water manage ment systems costs and dry- |
| docking cost | 173,388
″ | Losses on disposals of property, plant and equipment |
| (c ommissions) | 200,000
Associates | Management reve nue | (934)
Joint V enture | Management expe nse | 558,932

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WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
78

Related party | Item | Amount
For the Yea r Ended |  |
31 December 2023 |  |
Other related par ties | Vessel manage ment service income | $(655,906)
″ | Other income (ticket revenue and other income-other) | (106,747)
″ | Commissions | 5,460,870
″ | Other expenses (business trave l expenses, agency fees, |
| inspection fees, manage ment consulting fees and etc.) | 595,268
″ | Operating expenses (business trave l expenses, |
| entertainment expense s and etc.) | 113,404
″ | Ballast water manage ment systems costs and dry- |
| docking cost | 726,000
″ | Losses on disposals of property, plant and equ ipment |
| (Commissions) | 575,000
Associates | Management reve nue | (963)

C. Receivables and payables
As at 31 December 2024 and 2023, the Group incurred receivables and payables with
related parties due to vessels operation as follows:

Accounts r eceivable | 31 Decem ber 2024 | 31 Decem be r 2023
Name of related party |  |
Asiaeuro Investment S.A | $283,147 | $299,989
Other r eceivables | 31 Decem be r 20 24 | 31 Decem ber 20 23
Name of related party |  |
Other related parties | $2,299 | $1 1,692
Prepayments | 31 Decem be r 20 24 | 31 Decem be r 2023
Name of related party |  |
Other related parties | $- | $270,859
Other current assets, other | 31 Decem be r 20 24 | 31 Decem ber 20 23
Name of related party |  |
Other related parties | $1,136,761 | $701,844
Joint Venture | 94,450 | -
Total | $1,231,21 1 | $701,844

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
79

Accounts payable | 31 Decem be r 2024 | 31 De cembe r 20 23
Name of related party |  |
Genius Star Management Consulting Co., Ltd. | $45,982 | $-

Other accrued expenses | 31 Decem be r 2024 | 31 Decem be r 20 23
Name of related party |  |
Benefit T ransport S.A. | $6,649,265 | $6,796,453
Other related parties | 716,257 | 658,587
T otal | $7,365,522 | $7,455,040

Other current liabilities, other | 31 De cem ber 20 24 | 31 Decem be r 20 23
Name of related party |  |
Other related parties | $- | $243,277

D. Financing
Details of financing provided by a related party to the Group were as follows (accounted
for under long-term accounts payable to related parties):
31 December 2024

Name of related party | Max balance | Ending balance
Benefit T ransport S.A. | $79,098,448 | $53,220,685
Samurai Investment S.A. | 44,351,000 | 39,490,353
T otal | $123,449,448 | $92,71 1,038

31 December 2023

Name of related party | Max balance | Ending balance
Benefit T ransport S.A. | $90,581,247 | $79,098,448
Samurai Investment S.A. | 44,351,000 | 44,351,000
T otal | $134,932,247 | $123,449,448

Interest expenses | For t he Y ears Ended 31 December |
Name of related party | 2024 | 2023
Benefit T ransport S.A. | $4,442,150 | $5,847,736
Samurai Investment S.A. | 3,053,779 | 3,183,586
T otal | $7,495,929 | $9,031,322

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
80
The interest expenses of financing were calculated based on the LIBOR rate plus 2% per
month commencing from 2011.
E. Leases
(a) For the years ended 31 December 2024 and 2023, the Group entered into leases on its
office space with other related parties and key management as a lessee as follows:

Right-of-use assets | 31 December 2 02 4 | 31 December 202 3
Name of related party |  |
Key management | $304,396 | $-
Other related parties | 144,499 | -
T otal | $448,895 | $-

Lease liabilities | 31 December 2024 | 31 December 202 3
Name of related party |  |
Key management | $300,470 | $-
Other related parties | 142,463 | -
T otal | $442,933 | $-

Interest expense | For t he Y ears Ended 31 December |
Name of related party | 2024 | 2023
Key management | $470 | $1,046
Other related parties | - | 371
T otal | $470 | $1,417

(b) In August and October 2023, an office lease contract signed with key management,
which located in 3F., No. 137, Sanduo 3rd Rd., Qianzhen Dist., Kaohsiung City, was
terminated before expiration. The $173 lease modification profit was generated and
has been recognized in the statement of comprehensive income.
(c) As at 1 January 2024, the Group entered into 3-year office lease contracts with
chairman, with underlying assets including parking lots and office spaces located in
3F., No. 137, Sanduo 3rd Rd., Qianzhen Dist., Kaohsiung City and 7F.-1-3,-5-11,-13,
No. 237, Sec. 2, Fushing S. Rd., Taipei City, respectively, which resulted in acquisition
of right-of-use assets-buildings amounting to $487,524.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
81
(d) As at 1 January 2024, the Group entered into a 3-year office lease contract with Hui-
wen Investment Co., Ltd, with underlying assets including office spaces located in 7F.-
12,15-19, No. 237, Sec. 2, Fushing S. Rd., Taipei City, which resulted in acquisition
of right-of-use assets-buildings amounting to $231,431.
(e) For the years ended 31 December 2024 and 2023, the Group entered into leases with
other related parties as a lessor as follows:

Rent revenue | For t he Y ears Ended 31 December |
Name of related party | 2024 | 2023
Other related parties | $153,159 | $157,804

The above leases are paid monthly without rental deposits. Lease terms and conditions
are agreed by both parties which are not significant different from those with third
parties.
F. Guarantee
As at 31 December 2023, Benefit Transport S.A. had provided a time deposit guarantee for
the Group’s borrowings of $500 thousand. No such situation as at 31 December 2024.
G. Others
(a) For the year ended 31 December 2023, the installments for sale and leaseback
transactions paid to other related parties were ¥115,712 thousand, while interest
expenses were ¥4,114,750. As at 31 December 2023, the unpaid amount of sale and
leaseback transactions was ¥202,512 thousand (accounted for under long-term
accounts payable to related parties, current and non-current portion, at $1,432,091).
(b) For the year ended 31 December 2024, the installments for sale and leaseback
transactions paid to other related parties were ¥115,712 thousand, while interest
expenses were ¥2,385,016. As at 31 December 2024, the unpaid amount of sale and
leaseback transactions was ¥86,800 thousand (accounted for under long-term accounts
payable to related parties, curr ent por tion, at $555,627).
English Translation of Consolidated Financial Statements Originally Issued in Chinese
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
82
(3) Key management personnel compensation
For the years ended 31 December 2024 and 2023, key management personnel compensation
was as follows:

| For t he Y ears Ended 31 December |
| 2024 | 2023
Salary and bonus | $1,122,594 | $905,976
Post-employment benefits | 7,671 | 10,107
| $1,130,265 | $916,083

8. Pledged assets
The carrying values of pledged assets were as follows:

Pledged assets | Secured liabilities | 31 December 2 02 4 | 31 December 2023
Property, pl ant and equipment | Bank loans and long- |  |
| term payab les |  |
| (including due to |  |
| related parties) | $1,848,275,000 | $2,079,972,000
Investment property | Bank loans | 2,194,490 | 2,352,002
Financial | asse ts at fair value through |  |
other comprehensive income | Bank loans | 2,531,091 | 4,326,021
Other financial assets | Bank loans | 36,491,161 | 51,807,798
|  | $1,889,491,742 | $2,138,457,821

9. Significant commitments and contingencies
(1) The Group had entered into ship building contracts as follows:

| 3 1 D e c em be r 2024 |
Vessel s |  | 13
Contract price | $424,523 | thousand
Prepaid | 49,528 | thousand
Financed ship building cont racts | thousand | -

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WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
83
The remaining balance of the contract price is payable upon keel-laying, launching, and
delivery.
The ship building contracts categorized by year of delivery were as follows:

| Contract Price |
Year of delivery | (USD thousand) | Number of vessels
2025 | $62,000 | 2
2026 | 221,201 | 7
2027 | 141,322 | 4
Total | $424,523 | 13

(2) Financial guarantee

G uarantor | party guara ntee | 31 December 2024 | Ending date | Purpose
WML | Subsidiaries | $483,226 thous and | 2033.06 | Borrowings
|  | ¥28,782,453 thous and |  |
|  | CHF67,546 t housand |  |
The Company | Subsidiaries | $595,125 thous and | 2033.06 | Borrowings and
|  | ¥50,209,797 thous and |  | operating fund
|  | CHF44,306 t housand |  |
WML | The Company | $3,000 thousan d | 2025.07 | Operating fund
The Company | WII | NT$290,640 thousand | 2029.05 | Borrowings
Amis Int egrity S.A. | Daiwan Glory S.A. | ¥874,141 thousand | 2027.07 | Borrowings
Daiwan Glory S.A. | Amis Integrity S.A. | ¥1,247,814 thousa nd | 2027.07 | Borrowing s

Name of relative

Guarantor | party guara ntee | 31 December 2023 | Ending date | Purpose
WML | Subsidiaries | $609,662 thous and | 2033.06 | Borrowings
|  | ¥38,061,135 thous and |  |
The Company | Subsidiaries | $683,473 thous and | 2033.06 | Borrowings and
|  | ¥60,643,109 thous and |  | operating fund
WML | The Company | $3,000 thousan d | 2024.06 | Operating fund
The Company | WII | NT$275,140 th ousand | 2024.05 | Borrowings
Amis Int egrity S.A. | Daiwan Glory S.A. | ¥1,029,221 thousa nd | 2027.07 | Borrowings
Daiwan Glory S.A. | Amis Integrity S.A. | ¥1,409,446 thousa nd | 2027.07 | Borrowings

Name of relative
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
84
10. Losses due to major disasters:
None.
11. Significant subsequent events:
On 6 January 2025, the Group has entered into ship selling contract to sell one vessel for
$7,420,000. The delivery of the vessel was completed on 17 January 2025.
12. Others
(1) Categories of financial instruments
Financial assets

| 31 December 2 0 2 4 | 31 December 2023
Financial assets at fair value through profit or loss | $822,100 | $902,700
Financial assets at fair value through other |  |
comprehensive income | 9,717,541 | 1 1,864,671
Financial assets at amortized cost: |  |
Cash and cash equ ivale nt s (exclu ding cash on h and) | 135,147,863 | 1 16,942,353
Accounts receivable and ot her receivables |  |
(including due from related parties) | 1 1,734,708 | 6,978,904
Subtotal | 146,882,571 | 123,921,257
Other financial assets | 36,491,161 | 51,807,798
Total | $193,913,373 | $188,496,426

Financial liabilities

| 31 December 2 0 2 4 | 31 December 2023
Financial liabilities at amortized cost: |  |
Short-term borrowings | $21,470,519 | $30,527,226
Accounts payable (including to related parties) | 6,063,852 | 5,758,865
Bonds payable (including current por tion) | 30,197,916 | 45,059,803
Long-term borrowi ngs (incl uding current portion) | 799,891,874 | 962,414,725
Long-term accounts payable (including due to |  |
related parties) | 164,201,892 | 162,242,671
Lease liabilities (including current po rtion) | 122,419,807 | 143,544,254
Total | $1,144,245,860 | $1,349,547,544

English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
85
(2) Financial risk management objectives and policies
The Group’s principal financial risk management objective is to manage the market risk, credit
risk and liquidity risk related to its operating activities. The Group identifies measures and
manages the aforementioned risks based on the Group’s policy and risk appetite.
The Group has established appropriate policies, procedures and internal controls for financial
risk management. Before entering into significant transactions, due approval process by the
Group’s board of directors and audit committee must be carried out based on related protocols
and internal control procedures. The Group complies with its financial risk management
policies at all times.
(3) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of the changes in market prices. Market prices comprise currency risk,
interest rate risk and other price risk (such as equity risk).
In practice, it is rarely the case that a single risk variable will change independently from other
risk variables; there are usually interdependencies between risk variables. However the
sensitivity analysis disclosed below does not take into account the interdependencies between
risk variables.
Foreign currency risk
The Group is exposed to currency risk on sales, purchases and borrowings that are
denominated in a currency other than the respective functional currencies of Group entities,
primarily USD and Japanese Yen.
The foreign currency sensitivity analysis of the possible change in foreign exchange rates on
the Group’s profit is performed on significant monetary items denominated in foreign
currencies as at the end of the reporting period. The Group’s foreign currency risk is mainly
related to the volatility in the exchange rates for foreign currency Yen. The information of the
sensitivity analysis is as follows:
When USD strengthens/weakens against foreign currency Yen by 10%, the profit for the years
ended 31 December 2024 and 2023 increases/decreases by $2,521,634 and $4,915,930,
respectively; the equ ity increases/decreases by $0 and $0, respectively.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
86
Interest rate risk
Interest rate risk is managed by the Group on an ongoing basis with the primary objective of
limiting the extent to which net interest expense could be affected by an adverse movement in
interest rates. The Group’s has no financial liabilities at fair value through profit or loss
bearing fixed interest payable. The Group does not use financial derivatives to hedge against
interest rate risk.
The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at
the end of the reporting period, including investments and borrowings with variable interest
rates. At the reporting date, a change of 0.25% of interest rate in a reporting period could cause
the profit for the years ended 31 December 2024 and 2023 to decrease/increase by $2,768,166
and $3,245,783, respectively; the equity decrease /increase by $0 and $0, respectively.
(4) Credit risk management
Credit risk is the risk that a counter party will not meet its obligations under a contract, leading
to a financial loss. The Group is exposed to credit risk from operating activities (primarily for
accounts receivables) and from its financing activities, including bank deposits and other
financial instruments.
Credit risk is managed by each business unit subject to the Group’s established policy,
procedures and control relating to credit risk management. Credit limits are established for all
counter parties based on their financial position, rating from credit rating agencies, historical
experience, prevailing economic condition and the Group’s internal rating criteria etc. Certain
counter parties’ credit risk will also be managed by taking credit enhancing procedures, such
as requesting for prepayment or insurance.
As at 31 December 2024 and 2023, the accounts receivable amounted to $5,225,392 and
$5,086,191, constituting 0.19% and 0.18% of the consolidated total assets, respectively. The
credit concentration risk of accounts receivable is insignificant.
Credit risk from balances with banks, fixed income securities and other financial instruments
is managed by the Group’s treasury in accordance with the Group’s policy. The Group only
transacts with counterparties approved by the internal control procedures, which are banks
and financial institutions, companies and government entities with good credit rating.
Consequently, there is no signific ant credit risk for these counter parties.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
87
(5) Liquidity risk management
The Group’s objective is to maintain a balance between continuity of funding and flexibility
through the use of cash and cash equivalents, highly liquid equity investments, bank
borrowings, bonds and finance leases. The table below summarizes the maturity profile of the
Group’s financial liabilities based on the contractual undiscounted payments and contractual
maturity. The payment amount includes the contractual interest. The undiscounted payment
relating to borrowings with variable interest rates is extrapolated based on the estimated
interest rate yield curve as of the end of the reporting period.
As at 31 December 2024:

| Carr yi n g am ount | cash fl ow | 1 year | 2 year s | 3 to 5 years | > 5 years
Non-derivativ e financial liabilities |  |  |  |  |  |
Short-term b orrowin gs | $21,47 0,519 | $21,721,397 | $21,72 1,397 | $- | $- | $-
Accounts pa yables |  |  |  |  |  |
(includ ing due to relate d pa rties) | 6,063,85 2 | 6,063,85 2 | 6,063,85 2 | - | - | -
Bonds payabl e | 30,197,916 | 33,170,6 58 | 533,78 1 | 533,78 1 | 32,103,096 | -
Long-t erm borr owings | 799,89 1,874 | 915,20 4,613 | 213,87 7,455 | 141,30 4,847 | 318,46 8,528 | 241,553,783
Long-t erm account s paya ble |  |  |  |  |  |
(includ ing due to relate d pa rties) | 164,20 1,892 | 201,12 5,148 | 16,555,859 | 15,436,148 | 49,918,310 | 1 19,214,831
Lea se liab ilities | 122,419,807 | 135,60 8,780 | 31,849,614 | 20,024,471 | 52,706,989 | 31,027,706
| $1,144,245,860 | $1,312,894,448 | $290,601,95 8 | $177,2 99,24 7 | $453,1 96,92 3 | $391,7 96,32 0

Contractual
As at 31 December 2023:

|  | Contra ctual |  |  |  |
| Carr yi n g am ount | cash fl ow | 1 year | 2 year s | 3 to 5 years | > 5 years
Non-derivativ e financial liabilities |  |  |  |  |  |
Short-term b orrowin gs | $30,52 7,226 | $31,175,568 | $31,17 5,568 | $- | $- | $-
Accounts pa yable |  |  |  |  |  |
(includ ing due to relate d pa rties) | 5,758,865 | 5,758,865 | 5,758,865 | - | - | -
Bonds payabl e | 45,059,803 | 45,494,5 77 | 45,494,5 77 | - | - | -
Long-t erm borr owings | 962,41 4,725 | 1,123,20 0,926 | 262,45 7,380 | 229,069,236 | 381,20 7,909 | 250,46 6,401
Long-t erm account s paya ble |  |  |  |  |  |
(includ ing due to relate d pa rties) | 162,242,671 | 207,88 4,421 | 15,008,1 24 | 14,437,630 | 40,833,244 | 137,60 5,423
Lea se liab ilities | 143,544,254 | 161,29 6,488 | 17,496,970 | 45,985,201 | 37,713,021 | 60,101,296
| $1,349,547,544 | $1,574,810,845 | $377,391,48 4 | $289,4 92,06 7 | $459,7 54,17 4 | $448,1 73,12 0

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WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
88
(6) Reconciliation of liabilities arising from financing activities
Reconciliation of liabilities for the year ended 31 December 2024:

|  | Long-term | Long-t erm |  |  |  |
|  | borrowi ngs | accounts payable | Lea se liab ilities |  | Guarant ee | T otal liab ilit ies
| Short-term | (includ ing | (i ncluding due to | (includ ing |  | deposi ts | from fina ncin g
| borrowi ngs | curren t portion) | relat ed parties) | curren t portion) | Bonds pay able | received | activities
As at 1 Jan. 2024 | $30,5 27,2 26 | $962,414,72 5 | $162,24 2,67 1 | $143,544,25 4 | $45,0 59,8 03 | $19 5 | $1,34 3,78 8,87 4
Cash flows | (8,038,135) | (1 19,056,349) | 5,662,793 | (12,95 6,12 1) | (12,253,249) | - | (146,641,061)
Non-cash chang es |  |  |  |  |  |  |
Fore ign excha nge |  |  |  |  |  |  |
moveme nt | (1,018,572) | (43,466,502) | (3,997,888) | (8,984,931) | (2,701,131) | (12) | (60,169,03 6)
Other movement s | - | 1,203,414 | - | 294,3 16 | 816,6 05 | 92,49 3 | -
As at 31 Dec. 202 4 | $21,4 70,519 | $799,89 1,87 4 | $164,201,892 | $122,419,807 | $30,1 97,9 16 | $18 3 | $1,13 8,18 2,19 1

Reconciliation of liabilities for the year ended 31 December 2023:

|  | Long-term | Long-t erm |  |  |  |
|  | borrowi ngs | accounts payable | Lea se liab ilities |  | Guarant ee | T otal liab ilit ies
| Short-term | (includ ing | (i ncluding due to | (includ ing |  | deposi ts | from fina ncin g
| borrowi ngs | curren t portion) | relat ed parties) | curren t portion) | Bonds pay able | received | activities
As at 1 Jan. 2023 | $25,00 0,000 | $1,102,4 43,23 2 | $158,277,941 | $141,662,070 | $44,904,899 | $- | $1,472,2 88,14 2
Cash flows | 5,290,651 | (120,517,890) | 7,965,87 6 | (18,839,6 55) | - | 193 | (126,100,825)
Non-cash chang es |  |  |  |  |  |  |
Fore ign excha nge |  |  |  |  |  |  |
moveme nt | 236,57 5 | (19,510,6 17) | (4,098,361) | (4,949,769) | 16,583 | 2 | (28,305,5 87)
Other movement s | 25,907,144 | - | - | 97,215 | 25,671,608 | 138,32 1 | -
As at 31 Dec. 202 3 | $30,527,226 | $962,4 14,72 5 | $162,242,671 | $143,544,25 4 | $45,05 9,803 | $195 | $1,343,7 88,87 4

(7) Fair values of financial instruments
A. The methods and assumptions applied in determining the fair value of financial
instruments:
Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The
following methods and assumptions were used by the Group to measure or disclose the fair
values of financial assets and financial liabilities:
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(a) The carrying amount of cash and cash equivalents, accounts receivables, accounts
payable and other current liabilities approximate their fair value due to their short
maturities.
(b) Fair value of debt instruments without market quotations, bank loans, bonds payable
and other non-current liabilities are determined based on the counterparty prices or
valuation method. The valuation method uses DCF method as a basis, and the
assumptions such as the interest rate and discount rate are primarily based on relevant
information of similar instrument (such as yield curves published by the GreTai
Securities Market, average prices for fixed rate commercial paper published by Reuters
and credit risk, etc.)
(c) The fair value of derivatives which are not options and without market quotations, is
determined based on the counterparty prices or discounted cash flow analysis using
interest rate yield curve for the contract period. Fair value of option-based derivative
financial instruments is obtained using the counterparty prices or appropriate option
pricing model (for example, Binomial Tree model) or other valuation method (for
example, Monte Carlo Simulation).
B. Fair value of financial instruments measured at amortized cost
The carrying amount of the Group’s financial assets and liabilities measured at amortized
cost approximate their fair value, including cash and cash equivalents, accounts receivable,
account payable and other current liabilities.
C. Fair value measurement hierarchy for financial instruments
Please refer to Note 12.(8) for fair value measurement hierarchy for financial instruments
of the Group.
(8) Fair value measurement hierarchy
A. Fair value measurement hierarchy
All asset and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, based on the lowest level input
that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are
described as f ollows:
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Level 1– Quoted (unadjusted) market prices in active markets for identical assets or
liabilities that the entity can access at the measurement date
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly or indirectly
Level 3 – Unobservable inputs for the asset or liability
For assets and liabilities that are recognized in the financial statements on a recurring basis,
the Group determines whether transfers have occurred between Levels in the hierarchy by
re-assessing categorization at the end of each reporting period.
B. Fair value measurement hierarchy of the Group’s assets and liabilities
The Group does not have assets that are measured at fair value on a non-recurring basis.
Fair value measurement hierarchy of the Group’s assets and liabilities measured at fair
value on a recurring basis is as follows:
As at 31 December 2024
Level 1 Level 2 Level 3 Total

Financ ia l asse ts at fa ir value thr ough |  |  |  |
profi t or loss | $- | $- | $822,100 | $822,100
Financial assets at fair value through |  |  |  |
other comprehensive income | $9,717,541 | $- | $- | $9,717,541

As at 31 December 2023

| Level 1 | Lev el 2 | Lev el 3 | Total
Financial assets at fair value through |  |  |  |
profit or loss | $- | $- | $902,700 | $902,700
Financial assets at fair value through |  |  |  |
other comprehensive income | $1 1,864,671 | $- | $- | $1 1,864,671

Transfers between Level 1 and Level 2 during the period
During the years ended 31 December 2024 and 2023, there were no transfers between Level
1 and Level 2 fair value measurements.
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Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for
movements during the period is as follows:

|  |  | Asset s
|  | thr ou gh | At f air v alu e
|  |  | prof it or l oss
|  |  | Structured note
Beginning balances as at 1 January 2024 |  |  | $902,700
Total gai ns and l o ss es recogniz ed for the yea r ended 31 D ecember 2024: |  |  |
Amount r eco gnized i n profit or (l oss) (pres ent ed in “ot her pr ofit or los s”) |  |  | (26,743)
Acquis it ion/is s ues for the year en ded 3 1 De cember 2024 |  |  | -
Others |  |  | (53,857)
Ending balances as at | 31 Dece mber | 2024 | $822,100

|  |  | Asset s
|  |  | At f air value throu gh
|  |  | profit or l oss
|  |  | Structured note
Beginning balances as at 1 January 2023 |  |  | $910,700
To tal gains and los ses rec ogniz ed for t he yea r ended |  | 31 December | 2 02 3:
Amount r eco gnized i n profit or (l oss) (pres ent ed in “ot her pr ofit or los s”) |  |  | 82,600
Acquisition/iss ue s for the year ended | 2023 | 31 December | -
Others |  |  | (90,600)
Ending balances as at | 31 Dece mber | 2023 | $902,700

Total gains and losses recognized for the years ended 31 December 2024 and 2023 in the
table above contain gains and (losses) related to structured note on hand as at 31 December
2024 and 2023 in the amount of $(26,743) and $82,600, respectively.
Information on significant unobservable inputs to valuation
The Group’s assets that are measured at fair value categorized within Level 3 of the fair
value hierarchy on a recurring basis are the structured note. The significant unobservable
inputs to valuation of recurring fair value measurements categorized within Level 3 of the
fair value hierarchy is based on counterparty quotations.
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Valuation process used for fair value measurements categorized within Level 3 of the fair
value hierarchy
The Group ensures the results of the valuation are in line with market conditions, based on
independent and reliable inputs which are consistent with other information, and represent
exercisable prices. The Group also analyses the movements in the values of assets and
liabilities which are required to be re-measured or re-assessed as per the Group’s
accounting policies at each reporting date.
C. Fair value measurement hierarchy of the Group’s assets not measured at fair value but for
which the fair value is disclosed

As at 31 December 2024 | Level 1 | Level 2 | Level 3 | Total
Assets not measured at fair |  |  |  |
value but for which the fair |  |  |  |
value is disclos ed: |  |  |  |
Investment properties (please |  |  |  |
refe r to No te 6.(8)) | $- | $- | $2,531,838 | $2,531,838
As at 31 December 2023 | Level 1 | Level 2 | Level 3 | Total
Assets not measured at fair |  |  |  |
value but for which the fair |  |  |  |
value is disclosed: |  |  |  |
Investment properties (please |  |  |  |
refe r to No te 6.(8)) | $- | $- | $2,661,916 | $2,661,916

(9) Significant assets and liabilities denominated in foreign currencies
The Group is mainly affected by the impact of fluctuation in the currency exchange rate for
US Dollar, Japanese Yen or Swiss Franc. The Group’s significant exposure to foreign currency
risk was as follows:

|  |  |  | As at 3 1 De cember 202 4 |  |  | As at 3 1 De cember 202 3 |
|  |  | Forei gn cur r ency | Exch ange rate |  | Forei gn cur r ency | Exch ange rate |
|  |  | (Note 1) | (Note 2) | USD/J PY | (Note 1) | (Note 2) | USD/J PY
Financial liab iliti es |  |  |  |  |  |  |  |
Monetary it em |  |  |  |  |  |  |  |
USD | ：J PY |  | $11,053,4 40 | 156.22 | ¥1,726,768,397 | $8,737,280 | 141.41 | ¥1,235,538,765
JP Y ：USD |  |  | ¥5,666,064,67 6 | 0.0064 | $36,269,778 | ¥8,187,154,79 4 | 0.0071 | $57,896,576
NTD | ： | US D | NT$990,038,6 77 | 0.0305 | $30,197,916 | NT$1,383,561,254 | 0.0326 | $45,059,803

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Note 1: The foreign currency amount of monetary item is the carrying amount of foreign
currency financial liabilities
Note 2: The exchange rate of monetary item is spot rate.
For the years ended 31 December 2024 and 2023, the Group had foreign exchange gains of
$6,216,483 and $3,929,478, respectively.
(10) Capital management
The capital risk management is established to ensure the Group’s ability to continue to operate
as a going concern. Under this risk management, the Group may adjust dividend payment to
the shareholders, reduce the capital for redistribution to shareholders, issue new shares, adjust
capital expenditure plan and dispose assets to settle any liabilities in order to maintain or adjust
capital structure according to operating needs, investment purpose and market environment.
The Group’s capital structures consisted of net liabilities (borrowings excluding the amount
of cash and cash equivalents) and equity (common stock, capital surplus and other equity).
(11) Accounting policy differences as referred in Article 3 of Regulations Governing the
Preparation of Financial Reports by Securities Issuers with respect to the Group’s balance
sheet and statement of comprehensive income for the periods: None.
(12)List of the Group vessels as at 31 December 2024
No. Name of Vessel Construction year D.W.T. Vessel type
1 Amis Ace 2013 60,830 Supramax
2 Amis Brave 2013 61,467 Supramax
3 Amis Champion 2014 60,830 Supramax
4 Amis Dolphin 2015 60,830 Supramax
5 Amis Elegance 2015 55,404 Supramax
6 Amis Fortune 2015 55,468 Supramax
7 Amis Glory 2016 55,474 Supramax
8 Amis Hero 2017 63,469 Supramax
9 Amis Integrity 2017 62,980 Supramax
10 Amis Justice 2017 63,531 Supramax
11 Amis Kalon 2010 58,107 Supramax
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No. | Name of Vessel | Construction year | D.W.T. | Vessel type
12 | Amis Leader | 2010 | 58,107 | Supramax
13 | Amis Nature | 2018 | 55,472 | Supramax
14 | Amis Power | 2018 | 64,012 | Supramax
15 | Amis Queen | 2019 | 63,424 | Supramax
16 | Amis Respect | 2020 | 63,449 | Supramax
17 | Amis Star | 2019 | 61,123 | Supramax
18 | Amis Treasure | 2020 | 61,125 | Supramax
19 | Amis Unicorn | 2020 | 60,903 | Supramax
20 | Amis Victory | 2020 | 63,364 | Supramax
21 | Amis Wealth | 2021 | 63,364 | Supramax
22 | Amis Wisdom I | 2010 | 61,611 | Supramax
23 | Amis Wisdom II | 2010 | 61,611 | Supramax
24 | Amis Wisdom III | 2011 | 61,527 | Supramax
25 | Amis Wisdom VI | 2011 | 61,456 | Supramax
26 | Amis Xcel | 2024 | 63,793 | Supramax
27 | Amis Youth | 2024 | 63,434 | Supramax
28 | Atayal Ace | 2013 | 16,805 | Handy
29 | Atayal Brave | 2012 | 16,811 | Handy
30 | Atayal Mariner | 2012 | 16,813 | Handy
31 | Atayal Star | 2012 | 16,806 | Handy
32 | Bunun Ace | 2013 | 37,744 | Handy
33 | Bunun Benefit | 2019 | 37,372 | Handy
34 | Bunun Dynasty | 2014 | 37,795 | Handy
35 | Bunun Fortune | 2015 | 37,790 | Handy
36 | Bunun Hero | 2015 | 37,811 | Handy
37 | Bunun Infinity | 2016 | 37,654 | Handy
38 | Bunun Justice | 2017 | 37,748 | Handy
39 | Bunun Kalon | 2018 | 37,653 | Handy
40 | Bunun Leader | 2019 | 37,650 | Handy
41 | Bunun Miracle | 2020 | 37,060 | Handy
42 | Bunun Noble | 2020 | 37,655 | Handy
43 | Bunun Orchid | 2021 | 37,875 | Handy
44 | Bunun Power | 2021 | 37,283 | Handy
45 | Bunun Queen | 2022 | 37,299 | Handy
46 | Bunun Respect | 2021 | 37,987 | Handy

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No. Name of Vessel Construction year D.W.T. Vessel type
47 Bunun Star 2022 37,301 Handy
48 Bunun Treasure 2022 37,875 Handy
49 Bunun Unicorn 2023 39,413 Handy
50 Bunun Victory 2023 34,559 Handy
51 Bunun Wisdom 2012 38,168 Handy
52 Bunun Xcel 2023 39,697 Handy
53 Bunun Youth 2023 39,703 Handy
54 Bunun Zest 2023 39,601 Handy
55 Daiwan Elegance 2015 35,331 Handy
56 Daiwan Fortune 2015 34,893 Handy
57 Daiwan Glory 2015 35,531 Handy
58 Daiwan Hero 2016 34,376 Handy
59 Daiwan Infinity 2016 34,376 Handy
60 Daiwan Justice 2016 34,327 Handy
61 Daiwan Kalon 2016 34,327 Handy
62 Daiwan Leader 2018 34,442 Handy
63 Daiwan Miracle 2019 34,447 Handy
64 Daiwan Wisdom 2010 31,967 Handy
65 Frontier Bonanza 2010 179,435 Cape
66 Genius Ace 2007 20,150 Handy
67 Genius Star IX 2009 12,005 Handy
68 Genius Star X 2010 12,005 Handy
69 Genius Star XI 2012 13,663 Handy
70 Genius Star XII 2013 13,077 Handy
71 Global Faith 2010 28,386 Handy
72 Golden Kiku 2022 82,459 Panamax
73 Hibiscus 2002 48,610 Handy
74 Jacques 2021 4,745 LPG
75 Kanavu Benefit 2021 37,929 Handy
76 Katagalan Ace 2023 82,680 Panamax
77 Katagalan Brave 2023 82,719 Panamax
78 Katagalan Champion 2024 84,792 Panamax
79 Katagalan Wisdom 2012 98,697 Panamax
80 Katagalan Wisdom III 2012 98,697 Panamax
81 Ligulao 2010 5,296 Other-PCTC
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No. Name of Vessel Construction year D.W.T. Vessel type
82 Mega Benefit 2018 80,733 Panamax
83 Naluhu 2010 58,107 Supramax
84 Ocean Victory 2011 28,386 Handy
85 Paiwan Ace 2024 40,236 Handy
86 Paiwan Wisdom 2010 31,967 Handy
87 Papora Wisdom 2009 28,344 Handy
88 Pescadores 1999 44 Other-Passenger
89 Poavosa Ace 2013 28,208 Handy
90 Poavosa Brave 2009 28,367 Handy
91 Poavosa Wisdom 2009 28,234 Handy
92 Poavosa Wisdom III 2011 28,232 Handy
93 Poavosa Wisdom VI 2011 28,213 Handy
94 Poavosa Wisdom VII 2012 28,208 Handy
95 Poavosa Wisdom VIII 2013 28,208 Handy
96 Rukai Benefit 2019 14,040 Handy
97 Sakizaya Ace 2013 74,936 Panamax
98 Sakizaya Brave 2013 74,940 Panamax
99 Sakizaya Champion 2014 78,080 Panamax
100 Sakizaya Diamond 2015 81,938 Panamax
101 Sakizaya Elegance 2015 81,938 Panamax
102 Sakizaya Future 2016 81,938 Panamax
103 Sakizaya Glory 2016 84,883 Panamax
104 Sakizaya Hero 2016 81,067 Panamax
105 Sakizaya Integrity 2016 81,010 Panamax
106 Sakizaya Justice 2017 81,691 Panamax
107 Sakizaya Kalon 2017 81,691 Panamax
108 Sakizaya Leader 2017 81,691 Panamax
109 Sakizaya Miracle 2017 81,668 Panamax
110 Sakizaya Orchid 2017 81,588 Panamax
111 Sakizaya Power 2017 81,574 Panamax
112 Sakizaya Queen 2018 81,858 Panamax
113 Sakizaya Respect 2018 81,858 Panamax
114 Sakizaya Star 2020 82,516 Panamax
115 Sakizaya Treasure 2020 82,400 Panamax
116 Sakizaya Unicorn 2021 82,527 Panamax
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No. | Name of Vessel | Construction year | D.W.T. | Vessel type
117 | Sakizaya Victory | 2021 | 82,418 | Panamax
118 | Sakizaya Wisdom | 2011 | 76,457 | Panamax
119 | Sakizaya Xcel | 2022 | 82,446 | Panamax
120 | Sakizaya Youth | 2022 | 82,501 | Panamax
121 | Sakizaya Zest | 2022 | 82,501 | Panamax
122 | Saysiat Benefit | 2018 | 13,900 | Handy
123 | Scarlet Eagle | 2014 | 81,842 | Panamax
124 | Scarlet Falcon | 2014 | 82,260 | Panamax
125 | Scarlet Rosella | 2015 | 82,235 | Panamax
126 | Seediq Benefit | 2021 | 16,920 | Handy
127 | Taikli | 2011 | 13,139 | Handy
128 | Tao Ace | 2013 | 25,037 | Handy
129 | Tao Brave | 2011 | 25,065 | Handy
130 | Tao Mariner | 2010 | 25,065 | Handy
131 | Tao Star | 2010 | 25,065 | Handy
132 | Tao Treasure | 2013 | 25,036 | Handy
133 | Taokas Wisdom | 2008 | 31,943 | Handy
134 | Tekung Benefit | 2024 | 63,553 | Supramax

13. Other disclosures
Information on major shareholders
Name of Major Shareholder Number of shares Percentage of Ownership

Lan Chun Sheng | 191,815,349 | 25.69%
Capital Tip Customized Taiwan Select High |  |
Dividend ETF Account | 55,600,000 | 7.44%
Pescadores Merchandise Co., Ltd. | 52,569,814 | 7.04%

(1) The information on major shareholders, which is provided by the Taiwan Depository &
Clearing Corporation, summarized the shareholders who held over 5% of total non-physical
common stocks and preferred stocks (including treasury stocks) on the last business date of
each quarter. The registered non-physical stocks may be different from the capital stocks
disclosed in the financial statement due to different calculation basis.
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(2) If shares are entrusted, the above information regarding such shares will be revealed by each
trustors of individual trust account. The shareholders holding more than 10% of the total
shares of the company should declare insider’s equity according to Securities and Exchange
Act. The numbers of the shares declared by the insider include the shares of the trust assets
which the insider has discretion over use. For details of the insider’s equity announcement
please refer to the TWSE website.
14. Segment information
(1) General information
The Group operates in a single industry. According to the global management nature of the
ship management industry, the Group determined each business unit as an operating segment
and was disclosed according to their operating types, operating assets and the Group’s
operating structure. The Group was identified as a single reportable segment.
The board of directors allocates the profit and assesses performance of the segments based on
the financial information used in internal management which is based on each vessel’s
operating result. The financial information is not different from the consolidated statement of
comprehensive income therefore no further segmental information was disclosed.
(2) Geographic information
Revenue from external customers is classified according to the location of customers and non-
current assets are classified according to the registry of assets. The Group’s geographic
information is as follows:

|  | For the Year s Ende d 31 Dece mber |  |
|  | Percentage |  | Percent age
| 2024 | (%) | 20 23 | (%)
Revenue from external customers: |  |  |  |
Sin gap ore | $31 3,211,472 | 49 | $238,109,21 2 | 44
The Net herl an ds | 1 19,27 2,341 | 19 | 10 4,33 2,906 | 19
Denmark | 53,860,00 5 | 9 | 30,061,59 1 | 5
Panama | 51,002,65 7 | 8 | 36,408,99 2 | 7
Switzerland | 27,456,55 3 | 4 | 20,432,02 8 | 4
Germa ny | 13,724,15 8 | 2 | 41,289,17 1 | 7
Others | 55,903,98 4 | 9 | 74,896,38 9 | 14
To tal | $634,431,17 0 | 10 0 | $5 45,530,28 9 | 10 0

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2024.12.31 2023.12.31

Non-current assets: |  |
Panama | $2,015,100,509 | $2,188,899,202
Cayman | 2,345,725 | 4,513,755
Taiwan | 15,227,071 | 16,052,796
Liberia | 491,846,140 | 411,324,178
Total | $2,524,519,445 | $2,620,789,931

Note: non-current assets are property, plant and equipment, right-of-use assets, investment
property and prepaid expenses-vessel.
(3) Major customers
Individual customers accounting for at least 10% of net sales for the years ended 31 December
2024 and 2023 were as follows:
For the Years Ended 31 December

| 2024 | 2023
Customer A: | $127,104,21 1 | $109,576,232
Customer B: | $1 19,134,062 | $104,379,248
Customer C: | $86,736,350 | $67,278,795