1
WISDOM MARINE LINES CO., LIMITED (CAYMAN)
AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITORS’ REPORT
31 DECEMBER 2024 AND 2023
Registered: Windward 3, Regatta Office Park, PO Box 1350, Grand Cayman
KY1-1108, Cayman Islands
Address: 7F., No. 237, Sec. 2, Fushing S. Rd., Taipei City, Taiwan
Telephone: 886-2-2755-2637
2
TABLE OF CONTENTS
Contents
Cover page
1
Table of contents
2
Statement by directors
Independent auditors’ report
Consolidated balance sheets
Consolidated statements of comprehensive income
10
Consolidated statements of changes in equity
Consolidated statements of cash flows
12
Notes to the consolidated financial statements
1.
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
6. Contents of significant accounts
7. Related party transactions
8. Pledged assets
82
9. Significant commitments and contingencies
10. Losses due to major disasters
84
11. Significant subsequent events
84
12. Others
84-97
13. Other disclosures
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 consolidated financial statements of Wisdom Marine Lines Co., Limited
(Cayman) and its subsidiaries ( the Group) , which comprise the consolidated statement of financial
position as at 31 December 2024, and the related consolidated statements of comprehensive income,
changes in equity and cash flows for the years ended 31 December 2024, and notes to the consolidated
financial statements, including the summary of material accounting policies.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of the Group as at 31 December 2024, and their
consolidated financial performance and cash flows for the years ended 31 December 2024, in
accordance with International Financial Reporting Standards (IFRSs).
Basis for Opinion
We conducted our audits in accordance with the International Standards on Auditing (ISAs). 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
Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the
Republic of China (the “Norm”), which includes International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International In-
dependence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. 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 IFRSs, 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.
In preparing the consolidated financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
6
Those charged with governance, including audit committee, are responsible for overseeing the
Group’s financial reporting process.
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 ISAs 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 ISAs, 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 Group’s internal control.
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 Group’s ability to continue as a going concern .
If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’
report to the related disclosures in the 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 Group to
cease to continue as a going concern.
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.
7
6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group 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 the consolidated financial statements of the current
period 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.
/S/Lu, Chian Uen
/S/Liu, Jung Chin
for and on behalf of
Ernst & Young LLP
Chartered Accountants and Statutory Auditors
Taiwan
24 February 2025
Notes
ASSETS
Cash and cash equivalents
Current financial assets at fair value through profit or loss
Current financial assets at fair value through
other comprehensive income
Accounts receivable, net
Accounts receivable due from related parties, net
Other receivables
7
Inventories
Prepayments
Other current financial assets
Other current assets, other
7
Total current assets
Investments accounted for using the equity method
Property, plant and equipment
Right-of-use assets
Investment property, net
Deferred tax assets
Guarantee deposits paid
Net defined benefit asset, non-current
Other non-current assets
Total non-current assets
TOTAL ASSETS
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
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONT’D)
(All Amounts Expressed in US Dollars)
Note
LIABILITIES
Short-term borrowings
Accounts payable
Accounts payable to related parties
Other accrued expenses
7
Advance receipts
Other current liabilities, other
68,276,416
80,748,241
Current lease liabilities
Bonds payable, current portion
Long-term borrowings, current portion
6.(10)
Long-term accounts payable, current portion
Long-term accounts payable to related parties, current portion
210,465,715
278,844,270
Total current liabilities
Bonds payable
Long-term borrowings, non-current portion
Deferred tax liabilities
Non-current lease liabilities
Long-term accounts payable, non-current portion
Long-term accounts payable to related parties, non-current portion
6.(12) & 7
Guarantee deposits received
Total non-current liabilities
TOTAL LIABILITIES
EQUITY
6.(14)
Common stock
Capital surplus
Legal reserve
Unappropriated retained earnings
Exchange differences on translation of foreign financial statements
Unrealized gains (losses) from financial assets measured
at fair value through other comprehensive income
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
The accompanying notes are an integral part of the consolidated financial statements.
31 DECEMBER 2024 AND 2023
9
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
Operating costs
Gross profit from operations
Operating expenses
Administrative expenses
Expected credit losses
Total operating expenses
Net operating income
Non-operating income and expenses
Interest income
Other income, others
Gains on disposal of property, plant and equipment
6.(7), 6.(18) & 7
Foreign exchange gains
6.(18)
Miscellaneous expenses
6.(18)
Losses on disposals of investments
Losses from lease modification
(Losses) gains on financial assets (liabilities)
at fair value through profit or loss
Other impairment loss
Interest expense
6.(7), 6.(11), 6.(18) & 7
Share of loss of associates and joint ventures accounted
for using the equity method
Total non-operating income and expenses
Profit from continuing operations before tax
Income tax expense
6.(20)
Net income
Other comprehensive income (loss):
Components of other comprehensive income (loss) that will not be
reclassified to profit or loss
Remeasurement of defined benefit plans
Income tax expense (income) relating to items that will not be reclassified
Components of other comprehensive income (loss) that will be
reclassified to profit or loss
Exchange differences on translation of foreign financial statements
Unrealized gains from investments in debt instruments
measured at fair value through other comprehensive income
Other comprehensive income (loss)
Total comprehensive income
Net income attributable to:
Net income attributable to owners of parent
Comprehensive income attributable to:
Comprehensive income attributable to owners of parent
Basic earnings per share
Diluted earnings per share
The accompanying notes are an integral part of the consolidated financial statements.
FOR THE YEARS ENDED 31 DECEMBER 2024 AND 2023
10
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
Unrealized gains
(losses) on financial
Exchange differences
assets measured at
on translation of
fair value through
Unappropriated
foreign financial
other comprehensive
Common stock
retained earnings
statements
income
Balance, 1 January 2023
$238,739,686
$1,237,415
$6,960
$1,017,955,338
$275,851,783
$1,533,055,193
Appropriation and distribution of retained earnings:
Cash dividends of ordinary share
Profit for the year ended 31 December 2023
-
-
-
Other comprehensive income (loss) for the year ended 31 December 2023
-
-
-
Total comprehensive income (loss) for the year ended 31 December 2023
-
-
-
Balance, 31 December 2023
$238,739,686
$1,237,415
$6,960
$965,322,804
$260,505,757
$1,465,422,470
Balance, 1 January 2024
$238,739,686
$1,237,415
$6,960
$965,322,804
$260,505,757
$1,465,422,470
Appropriation and distribution of retained earnings:
Cash dividends of ordinary share
Profit for the year ended 31 December 2024
-
-
-
Other comprehensive income (loss) for the year ended 31 December 2024
-
-
-
Total comprehensive income (loss) for the year ended 31 December 2024
-
-
-
Balance, 31 December 2024
$238,739,686
$1,237,415
$6,960
$1,089,832,443
$268,608,077
$1,598,192,045
The accompanying notes are an integral part of the consolidated financial statements.
11
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
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 cargo 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.
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.
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: Disclosures (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.
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 point in time.
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 Standards 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 therein shown in the consolidated financial statements.
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 affect 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.
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
Ownership
Ownership
Percentage
Percentage
The Company
The Company
WII
Well Ship Management and Maritime
Consultant Co., Ltd. (WELL)
Shipping Management Industry
100%
100%
WII
Huian Ship Management Co., Ltd.
Shipping Management Industry
100%
100%
WII
Wisdom Lines Europe B.V.
Shipping Management Industry
100%
100%
WML
WML
WML
WML
WML
WML
WML
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
Ownership
Ownership
Percentage
Percentage
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
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
Ownership
Ownership
Percentage
Percentage
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
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
Ownership
Ownership
Percentage
Percentage
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
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
Ownership
Ownership
Percentage
Percentage
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
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
Ownership
Ownership
Percentage
Percentage
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
WML
Subsidiaries excluded from consolidation: None.
(4) Foreign 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:
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 reclassified to profit or loss.
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 instrument.
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:
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 periods.
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.
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 recognized 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.
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.
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 transaction costs.
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 though profit or loss.
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.
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.
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.
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
Vessels
Vessel equipment
3-5 years
Dry dock
2.5 years
Other
Right-of-use assets
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.
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 both of the following:
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 lease.
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.
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.
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 profit 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.
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 financing component arises.
(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 of funds.
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
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.
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 recognized nor disclosed.
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 instruments. Please refer to Note 12 for more details.
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.
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 December 2024
31 December 2023
Cash on hand
Demand deposits
Time deposits
Total
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 December 2024
31 December 2023
Mandatorily measured at fair value through profit
or loss:
Structured notes
-Current
$822,100
$902,700
For the Year Ended
31 December
Realized
Unrealized
Equity
Amount in
Contract
gains
gains
linked note
Type of contract
contract
period
(losses)
(losses)
(Y/N)
2024.12.31
10 year USD
Taichung Commercial
2022.08.05~
range accrual note
Bank Co., Ltd.
2032.08.05
$53,857
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
49
For the Year Ended
31 December
Realized
Unrealized
Equity
Amount in
Contract
gains
gains
linked note
Type of contract
contract
period
(losses)
(losses)
(Y/N)
2023.12.31
10 year USD
Taichung Commercial
2022.08.05~
range accrual note
Bank Co., Ltd.
2032.08.05
$90,600
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 assets at fair value through other comprehensive income
31 December 2024
31 December 2023
Investments in debt instruments measured at fair
value through other comprehensive income
Bonds
-Current
$9,717,541
$11,864,671
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 accounts receivable due from related parties, net
31 December 2024
31 December 2023
Accounts receivable
Less: loss allowance
Subtotal
Accounts receivable due from related parties
283,147
299,989
Less: loss allowance
Subtotal
Accounts receivable, net
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 December 2024
31 December 2023
Fuel
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
Percentage of
Carrying
Percentage of
Investees
amount
ownership (%)
amount
ownership (%)
Investments in associates:
Pescadores Investment and
Development Inc.
$11,580,467
40%
$11,905,112
40%
Accumulated impairment
(1,677,581)
-
Subtotal
Investments in joint venture:
Wisdom Synergy
Shipmanagement Pte. Ltd.
50%
-
-
-
Total
$9,902,886
$11,905,112
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 interest in the associate:
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
52
31 December 2024
31 December 2023
Current assets
Non-current assets
141,566,717
152,646,009
Current liabilities
Non-current liabilities
Equity
28,951,168
29,762,779
Percentage of ownership (%)
40%
40%
Group’s carrying amount of the investment
$11,580,467
$11,905,112
For the Years Ended 31 December
2024
2023
Operating revenue
$-
$-
Loss from continuing operations
Other comprehensive income
Total comprehensive loss
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 Year Ended
31 December
2024
Loss from continuing operations
Other comprehensive income (loss)
Total comprehensive income (loss)
$(182,710)
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 consent from all venture partners.
(7) Property, plant and equipment
31 December 2024
31 December 2023
Owner occupied property, plant and equipment
$11,874,399
$12,744,400
Property, plant and equipment leased out under
operating leases
Total
A. Owner occupied property, plant and equipment
Foreign exchange
Ending
31 December 2024
differences
balance
Cost
Land
Buildings
1,577,517
9,040
-
-
(100,269)
1,486,288
Transportation equipment
92,168
-
-
(5,848)
86,320
Office equipment
Total
13,419,223
28,598
-
-
(851,953)
12,595,868
Accumulated depreciation
Buildings
286,857
66,143
-
-
(19,562)
333,438
Transportation equipment
86,161
4,308
-
-
(5,555)
84,914
Office equipment
Total
674,823
91,342
-
-
(44,696)
721,469
Net balance
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
54
Foreign exchange
Ending
31 December 2023
differences
balance
Cost
Land
Buildings
1,559,019
17,731
-
-
767
1,577,517
Transportation equipment
92,137
-
-
-
31
92,168
Office equipment
Total
13,345,518
68,359
-
-
5,346
13,419,223
Accumulated depreciation
Buildings
218,427
67,374
-
-
1,056
286,857
Transportation equipment
81,629
4,440
-
-
92
86,161
Office equipment
Total
585,219
88,125
-
-
1,479
674,823
Net balance
B. Property, plant and equipment leased out under operating leases
Ending
Foreign exchang
e
31 December 2024
differences
balance
Cost
Vessels
$3,470,606,591
$380,429
$176,985,557
$129,472,211
$(165,629)
$3,423,308,045
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
1,110,000
(40,304)
45,661,565
Total
3,518,090,911
23,251,347
193,152,375
130,582,211
(206,764)
3,478,565,330
Accumulated depreciation
and impairment
Vessels
1,141,505,564
121,735,334
93,345,301
-
(135,106)
1,169,760,491
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
141,522,811
108,985,338
-
(176,241)
1,195,390,680
Net balance
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
55
Ending
Foreign exchang
e
31 December 2023
differences
balance
Cost
Vessels
$3,628,751,284
$1,649,821
$350,494,519
$190,699,155
$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
Accumulated depreciation
and impairment
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 balance
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.
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 exchange
Ending
31 December 2024
differences
balance
Cost
Land
Buildings
-
-
-
Total
-
-
-
Accumulated
depreciation
Buildings
-
-
Total
-
-
Net balance
Foreign exchange
Ending
31 December 2023
differences
balance
Cost
Land
Buildings
-
-
-
83
Total
-
-
-
779
Accumulated
depreciation
Buildings
-
-
138
Total
8,727
-
-
138
Net balance
$(8,727)
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
57
For the Years Ended 31 December
2024
2023
Rental income from investment property
$98,240
$102,579
Less:
Direct operating expenses from investment
property generating rental income
(37,033)
(36,339)
Direct operating expenses 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 December 2024
31 December 2023
Prepayment for vessels
$49,528,000
$64,273,500
Deferred expenses
Carbon credits intangible asset
430,032
-
Total
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).
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
58
(10) Borrowings
31 December 2024
31 December 2023
Bank loans
－
－
A. Terms and conditions of outstanding loans were as follows:
Loans
31 December 2024
Unsecured
JPY
CHF
TWD
Secured
JPY
CHF
TWD
Total
Loans
31 December 2023
Unsecured
JPY
Secured
JPY
TWD
Total
B. Future settlements of long-term borrowings were as follows:
Maturity period
31 December 2024
31 December 2023
Within one year
Beyond one year and up to five years
More than five years
232,449,219
236,452,930
Total
(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.
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
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
Net
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
Less: current portion of bonds payable
-
-
Subtotal
Total
Interest expense
$586,853
$530,856
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 the Years Ended 31 December
2024
2023
Lease income for operating leases
Income relating to fixed lease payments and
variable lease payments that depend on an
index or a rate
$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 December 2024
31 December 2023
Not later than one year
Later than one year but not later than two years
Later than two years but not later than three years
Later than three years but not later than four years
Total
$258,762,595
$628,969,560
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
Vessels
Buildings
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 December 2024
31 December 2023
Lease liabilities
Current
$28,488,199
$13,391,453
Non-current
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.
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 the Years Ended 31 December
2024
2023
Vessels
Buildings
Total
(c) Income and costs relating to leasing activities
For the Years Ended 31 December
2024
2023
The expense relating to short-term leases
The expense relating to leases of low-
value
assets (Not including the expenses
relating to short-term leases of low-
value assets)
The expense relating to variable lease
payments not included in the
measurement of lease liabilities
Income from subleasing right-of-use assets
45,424,572
38,712,135
Losses arising from sale and leaseback
transactions
(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
(i)
7 years from 2018.09
¥28,928,000/quarter
¥810,000,000
(ii)
7 years from 2021.11
¥45,900,000/quarter
¥1,485,000,000
TIBOR+1.35%
(iii)
7 years from 2023.01
¥64,162,300/quarter
¥1,941,800,000
TIBOR+1.00%
(iv)
(v)
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
63
31 December 2023
(i)
7 years from 2018.09
¥28,928,000/quarter
¥810,000,000
(ii)
7 years from 2021.11
¥45,900,000/quarter
¥1,485,000,000
TIBOR+1.35%
(iii)
7 years from 2023.01
¥64,162,300/quarter
¥1,941,800,000
TIBOR+1.00%
ii. Future non-cancellable chartering payments as at 31 December 2024 and 2023
were as follows:
31 December 2024
31 December 2023
Within one year
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
Taiwan.
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
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 loss.
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
Cash dividends from retained earnings-per share
For the amount and estimate basis of Directors’ and supervisors’ remuneration please
refer to Note 6.(17).E.
(15) Operating revenue
For the Years Ended 31 December
2024
2023
Revenue from contracts with customers
Freight revenue
$-
$1,561,136
Vessel management revenue
706,437
656,869
Subtotal
Hire revenue (Note)
Hire revenue-long term
Hire revenue-short term
Subtotal
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 the Years Ended 31 December
2024
2023
Rendering of services
Timing of revenue recognition:
Over time
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 the Years Ended 31 December
2024
2023
Operating expenses – expected credit losses
Accounts receivable
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 December 2024
Not yet due
Gross carrying amount
Loss ratio
Lifetime expected credit
losses
Net carrying amount
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
67
31 December 2023
Not yet due
Gross carrying amount
Loss ratio
Lifetime expected credit
losses
Net carrying amount
The movement in the provision for impairment of accounts receivable during the years ended
31 December 2024 and 2023 is as follows:
For the Years Ended 31 December
2024
2023
Beginning balance
$215,996
$311,564
Addition for the current period
280,486
286,890
Write off for past due over 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
Expenses for chartering services
50,275,843
42,789,337
Wages and personnel expenses
Other operating costs
11,977,503
12,401,905
Total
$417,680,331
$428,615,293
A. Cost of materials
For the Years Ended 31 December
2024
2023
Fuel
Lubricants
Materials
Spare parts
17,069,437
17,051,451
Inspection fees
8,058,489
8,417,455
Repairs and maintenance
Paints
Total
$58,311,885
$62,416,368
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
68
B. Expenses for chartering services
For the Years Ended 31 December
2024
2023
Commissions
Management fee
Port charges
843,797
1,189,857
Agency costs
Dispatch expenses
Postage expenses
Others
5,225,782
5,417,122
Carbon fee
17,859
-
Total
$50,275,843
$42,789,337
C. Wages and personnel expenses
For the Years Ended 31 December
2024
2023
Crew wages
$118,468,897
$121,644,806
Insurance expenses
Food and meals
8,405,585
8,749,520
Crew travel fees
3,561,223
11,075,793
Bonus
2,649,070
3,406,722
Pension
170,570
176,911
Total
$145,065,097
$158,263,121
D. Other operating costs
For the Years Ended 31 December
2024
2023
Hull and machinery insurance
Compensation for damage
Lease payments
Others
935,986
1,146,553
Total
$11,977,503
$12,401,905
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 Years Ended 31 December
2024
2023
Operating
Operating
Total
Operating
Operating
Total
costs
expenses
amount
costs
expenses
amount
Employee benefits expense
Salaries
$121,117,967
$2,620,000
$123,737,967
$125,051,528
$2,036,179
$127,087,707
Insurance expenses
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
Other employee benefits
expense
Depreciation
152,050,003
238,776
152,288,779
152,744,562
221,315
152,965,877
Amortization
-
-
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
appropriation
The amount
according to the
recognized in the
shareholders meeting
financial report
Difference
Directors’ and supervisors’ remuneration
2022
The actual
appropriation
The amount
according to the
recognized in the
shareholders meeting
financial report
Difference
Directors’ and supervisors’ remuneration
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 the Years Ended 31 December
2024
2023
Interest income
Bank deposits
Financial assets at fair value through other
comprehensive income
Total
B. Other income
For the Years Ended 31 December
2024
2023
Other income, others
$320,167
$1,078,502
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
71
C. Other gains and losses
For the Years Ended 31 December
2024
2023
Gains on disposals of property, plant and
equipment
Losses on disposals of investments
(11,418)
(1,402)
Losses from lease modification
Foreign exchange gains
(Losses) gains on financial assets at fair value
through profit or loss (Note)
(26,743)
713,053
Other impairment loss
Subtotal
Miscellaneous expenses
(1,208,412)
(2,452,822)
Total
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 the Years 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 liabilities
Interest on long-term accounts payable
(including from related parties)
Total interest expense
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 original
Other
cost that was
Other
Income tax
comprehensive
Arising during
removed to
comprehensive
income
income, net
the period
hedged item
income (loss)
(expenses)
of tax
Components of other comprehensive income that
will not be reclassified to profit or loss:
Remeasurements of defined benefit plans
Components of other comprehensive income that
will be reclassified to profit or loss:
Exchange differences on translation of foreign
financial statements
Unrealized gains (losses) from investments in
debt instruments measured at fair value
through other comprehensive income
Total of other comprehensive income (loss)
For the year ended 31 December 2023
The original
Other
cost that was
Other
Income tax
comprehensive
Arising during
removed to
comprehensive
income
income, net
the period
hedged item
income (loss)
(expenses)
of tax
Components of other comprehensive income that
will not be reclassified to profit or loss:
Remeasurements of defined benefit plans
Components of other comprehensive income that
will be reclassified to profit or loss:
Exchange differences on translation of foreign
financial statements
Unrealized gains (losses) from investments in
debt instruments measured at fair value
through other comprehensive income
Total of other comprehensive income (loss)
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 the Years 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 relating 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:
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 from 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 tax expense recognized in profit or 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
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
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
376,110
2034
$2,882,881
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
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
Deferred tax assets (liabilities):
Balance, 1 January 2024
(Debit) credit in income statement
(1,069)
(25,649)
(26,718)
Relating to components of other
comprehensive income
Exchange rate effects
215
(738)
(523)
Balance, 31 December 2024
$(7,344)
$(6,418)
$(13,762)
Balance, 1 January 2023
(Debit) credit in income statement
(36,941)
11,114
(25,827)
Relating to components of other
comprehensive income
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 liabilities
$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 assessment of income tax returns
Wisdom Marine International Inc. (WII)
Assessed and approved up to 2022
Well Ship management and Maritime
Consultant Co., Ltd. (WELL)
Assessed and approved up to 2022
Huian Ship Management Co., Ltd.
Assessed and approved up to 2022
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
Weighted 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
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
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
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
For the Year Ended
31 December 2024
Other related parties
Vessel management service income
$(705,502)
″
″
″
inspection fees, management consulting fees and etc.)
502,849
″
entertainment expenses and etc.)
85,006
″
″
docking cost
173,388
″
(commissions)
Associates
Management revenue
(934)
Joint Venture
Management expense
558,932
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
78
Related party
Item
For the Year Ended
31 December 2023
Other related parties
Vessel management service income
$(655,906)
″
″
″
inspection fees, management consulting fees and etc.)
595,268
″
entertainment expenses and etc.)
113,404
″
docking cost
726,000
″
(Commissions)
575,000
Associates
Management revenue
(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 receivable
Name of related party
Asiaeuro Investment S.A
Other receivables
Name of related party
Other related parties
$2,299
$11,692
Prepayments
31 December 2024
31 December 2023
Name of related party
Other related parties
$-
$270,859
Other current assets, other
31 December 2024
31 December 2023
Name of related party
Other related parties
$1,136,761
$701,844
Joint Venture
Total
$1,231,211
$701,844
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
79
Accounts payable
Name of related party
Genius Star Management Consulting Co., Ltd.
$45,982
$-
Other accrued expenses
31 December 2024
31 December 2023
Name of related party
Benefit Transport S.A.
$6,649,265
$6,796,453
Other related parties
716,257
658,587
Total
Other current liabilities, other
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
Max balance
Benefit Transport S.A.
$79,098,448
$53,220,685
Samurai Investment S.A.
44,351,000
39,490,353
Total
31 December 2023
Max balance
Benefit Transport S.A.
$90,581,247
$79,098,448
Samurai Investment S.A.
44,351,000
44,351,000
Total
Interest expenses
Name of related party
2024
2023
Benefit Transport S.A.
$4,442,150
$5,847,736
Samurai Investment S.A.
3,053,779
3,183,586
Total
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 2024
31 December 2023
Name of related party
Key management
$304,396
$-
Other related parties
144,499
-
Total
Lease liabilities
31 December 2024
31 December 2023
Name of related party
Key management
$300,470
$-
Other related parties
142,463
-
Total
Interest expense
For the Years Ended 31 December
Name of related party
2024
2023
Key management
$470
$1,046
Other related parties
-
371
Total
(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.
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
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
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, current portion, at $555,627).
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
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 the Years Ended 31 December
2024
2023
Salary and bonus
$1,122,594
$905,976
Post-employment benefits
$1,130,265
$916,083
8. Pledged assets
The carrying values of pledged assets were as follows:
Pledged assets
Property, plant and equipment
term payables
(including due to
related parties)
Investment property
Financial
assets at fair value through
other comprehensive income
Other financial assets
$1,889,491,742
$2,138,457,821
9. Significant commitments and contingencies
(1) The Group had entered into ship building contracts as follows:
31 December 2024
Vessels
Contract price
$424,523
Prepaid
49,528
Financed ship building contracts
-
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)
2025
$62,000
2
2026
221,201
7
2027
141,322
4
Total
$424,523
13
(2) Financial guarantee
Guarantor
party guarantee
31 December 2024
Purpose
WML
$483,226 thousand
2033.06
¥28,782,453 thousand
CHF67,546 thousand
The Company
$595,125 thousand
2033.06
Borrowings and
¥50,209,797 thousand
operating fund
CHF44,306 thousand
WML
The Company
$3,000 thousand
2025.07
The Company
NT$290,640 thousand
2029.05
Amis Integrity S.A.
Daiwan Glory S.A.
Name of relative
Guarantor
party guarantee
31 December 2023
Purpose
WML
$609,662 thousand
2033.06
¥38,061,135 thousand
The Company
$683,473 thousand
2033.06
¥60,643,109 thousand
operating fund
WML
The Company
$3,000 thousand
2024.06
The Company
NT$275,140 thousand
2024.05
Amis Integrity S.A.
Daiwan Glory S.A.
Name of relative
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 2024
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
Financial assets at amortized cost:
Cash and cash equivalents (excluding cash on hand)
Accounts receivable and other receivables
(including due from related parties)
Subtotal
Other financial assets
36,491,161
51,807,798
Total
$193,913,373
$188,496,426
Financial liabilities
31 December 2024
31 December 2023
Financial liabilities at amortized cost:
Short-term borrowings
Accounts payable (including to related parties)
6,063,852
5,758,865
Bonds payable (including current portion)
Long-term borrowings (including current portion)
Long-term accounts payable (including due to
related parties)
164,201,892
162,242,671
Lease liabilities (including current portion)
Total
$1,144,245,860
$1,349,547,544
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 equity increases/decreases by $0 and $0, respectively.
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 significant credit risk for these counter parties.
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:
Contractual
Carrying amount
cash flow
1 year
2 years
Non-derivative financial liabilities
Short-term borrowings
Accounts payables
(including due to related parties)
Bonds payable
Long-term borrowings
799,891,874
915,204,613
213,877,455
141,304,847
318,468,528
241,553,783
Long-term accounts payable
(including due to related parties)
Lease liabilities
$1,144,245,860
$1,312,894,448
$290,601,958
$177,299,247
$453,196,923
$391,796,320
As at 31 December 2023:
Contractual
Carrying amount
cash flow
1 year
2 years
Non-derivative financial liabilities
Short-term borrowings
Accounts payable
(including due to related parties)
Bonds payable
Long-term borrowings
962,414,725
1,123,200,926
262,457,380
229,069,236
381,207,909
250,466,401
Long-term accounts payable
(including due to related parties)
Lease liabilities
$1,349,547,544
$1,574,810,845
$377,391,484
$289,492,067
$459,754,174
$448,173,120
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-term
borrowings
accounts payable
Lease liabilities
Guarantee
Total liabilities
Short-term
(including
(including due to
(including
deposits
from financing
borrowings
current portion)
related parties)
current portion)
received
activities
As at 1 Jan. 2024
Cash flows
Non-cash changes
Foreign exchange
movement
Other movements
As at 31 Dec. 2024
Reconciliation of liabilities for the year ended 31 December 2023:
Long-term
Long-term
borrowings
accounts payable
Lease liabilities
Guarantee
Total liabilities
Short-term
(including
(including due to
(including
deposits
from financing
borrowings
current portion)
related parties)
current portion)
received
activities
As at 1 Jan. 2023
Cash flows
Non-cash changes
Foreign exchange
movement
236,575
(19,510,617)
16,583
(28,305,587)
Other movements
As at 31 Dec. 2023
(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:
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
89
(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 follows:
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
90
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
Financial assets at fair value through
profit or loss
Financial assets at fair value through
other comprehensive income
$9,717,541
$-
$-
$9,717,541
As at 31 December 2023
Level 1
Level 2
Level 3
Financial assets at fair value through
profit or loss
$-
$-
$902,700
$902,700
Financial assets at fair value through
other comprehensive income
$11,864,671
$-
$-
$11,864,671
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.
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
91
Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for
movements during the period is as follows:
Assets
through
At fair value
profit or loss
Structured note
Beginning balances as at 1 January 2024
$902,700
Total gains and losses recognized for the year ended 31 December 2024:
Amount recognized in profit or (loss) (presented in “other profit or loss”)
(26,743)
Acquisition/issues for the year ended 31 December 2024
-
Others
(53,857)
Ending balances as at
31 December
2024
$822,100
Assets
At fair value through
profit or loss
Structured note
Beginning balances as at 1 January 2023
$910,700
Total gains and losses recognized for the year ended
31 December
2023:
Amount recognized in profit or (loss) (presented in “other profit or loss”)
82,600
Acquisition/issues for the year ended
2023
31 December
-
Others
(90,600)
Ending balances as at
31 December
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.
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
92
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 disclosed:
Investment properties (please
refer to Note 6.(8))
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
refer to Note 6.(8))
(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 31 December 2024
As at 31 December 2023
Foreign currency
Exchange rate
Foreign currency
Exchange rate
(Note 1)
(Note 2)
(Note 1)
(Note 2)
Financial liabilities
Monetary item
USD
JPY
NTD
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
93
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.
1
2
Amis Brave
2013
61,467
Supramax
3
Amis Champion
2014
60,830
Supramax
4
2015
60,830
Supramax
5
Amis Elegance
2015
55,404
Supramax
6
2015
55,468
Supramax
7
Amis Glory
2016
55,474
Supramax
8
Amis Hero
2017
63,469
Supramax
9
10
Amis Justice
2017
63,531
Supramax
11
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
94
No.
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
2020
60,903
Supramax
20
21
22
23
24
25
26
Amis Xcel
2024
63,793
Supramax
27
28
Atayal Ace
2013
16,805
29
Atayal Brave
2012
16,811
30
Atayal Mariner
2012
16,813
31
Atayal Star
2012
16,806
32
33
2019
37,372
34
Bunun Dynasty
2014
37,795
35
Bunun Fortune
2015
37,790
36
Bunun Hero
2015
37,811
37
2016
37,654
38
Bunun Justice
2017
37,748
39
Bunun Kalon
2018
37,653
40
Bunun Leader
2019
37,650
41
2020
37,060
42
Bunun Noble
2020
37,655
43
Bunun Orchid
2021
37,875
44
Bunun Power
2021
37,283
45
2022
37,299
46
2021
37,987
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
95
No.
47
Bunun Star
2022
37,301
48
49
Bunun Unicorn
2023
39,413
50
51
52
2023
39,697
53
54
Bunun Zest
2023
39,601
55
Daiwan Elegance
2015
35,331
56
Daiwan Fortune
2015
34,893
57
Daiwan Glory
2015
35,531
58
Daiwan Hero
2016
34,376
59
Daiwan Infinity
2016
34,376
60
2016
34,327
61
Daiwan Kalon
2016
34,327
62
Daiwan Leader
2018
34,442
63
Daiwan Miracle
2019
34,447
64
65
Frontier Bonanza
2010
179,435
66
67
Genius Star IX
2009
12,005
68
Genius Star X
2010
12,005
69
Genius Star XI
2012
13,663
70
Genius Star XII
2013
13,077
71
Global Faith
2010
28,386
72
2022
82,459
Panamax
73
Hibiscus
2002
48,610
74
2021
4,745
75
2021
37,929
76
77
2023
82,719
Panamax
78
2024
84,792
Panamax
79
80
81
Ligulao
2010
5,296
Other-PCTC
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
96
No.
82
2018
80,733
Panamax
83
2010
58,107
Supramax
84
85
2024
40,236
86
87
Papora Wisdom
2009
28,344
88
1999
44
89
90
2009
28,367
91
92
93
94
95
96
2019
14,040
97
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
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
112
Sakizaya Queen
2018
81,858
Panamax
113
2018
81,858
Panamax
114
Sakizaya Star
2020
82,516
Panamax
115
2020
82,400
Panamax
116
Sakizaya Unicorn
2021
82,527
Panamax
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
97
No.
117
118
119
Sakizaya Xcel
2022
82,446
Panamax
120
121
Sakizaya Zest
2022
82,501
Panamax
122
2018
13,900
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
127
128
129
Tao Brave
2011
25,065
130
Tao Mariner
2010
25,065
131
Tao Star
2010
25,065
132
133
134
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.
(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.
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
98
(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 Years Ended 31 December
Percentage
Percentage
2024
(%)
(%)
Revenue from external customers:
Singapore
49
$238,109,212
44
The Netherlands
119,272,341
19
104,332,906
19
Denmark
Panama
51,002,657
8
36,408,992
7
Switzerland
Germany
Others
Total
WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)
99
2024.12.31
2023.12.31
Non-current assets:
Panama
$2,015,100,509
$2,188,899,202
Cayman
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:
$127,104,211
$109,576,232
Customer B:
$119,134,062
$104,379,248
Customer C:
$86,736,350
$67,278,795