Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024

The Board of Directors and Shareholders U-Ming Marine Transport Corporation

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

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

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

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

Stage of Completion of Freight Contracts

The Company's revenue from dry bulk voyage charters is recognized over time as the performance obligation is satisfied. For voyages that are not completed as of the reporting date, management measures progress toward satisfaction of the performance obligation based on the proportion of actual voyage days elapsed to the estimated total voyage days.

The estimation of total voyage days involves significant management judgment and is subject to estimation uncertainty, which directly affects the timing of revenue recognition. Accordingly, this matter was considered to be a key audit matter.

Our audit procedures in relation to the above matter included, among others, the following:

1. Obtaining an understanding of, and testing the design and operating effectiveness of, internal controls over the recognition of dry bulk voyage charter revenue.

2. Evaluating whether management's method for measuring progress toward satisfaction of the performance obligation is in accordance with the applicable accounting standards and has been consistently applied.

3. For voyages in progress around the reporting date, inspecting supporting documentation including charter parties, Notices of Readiness, Statements of Facts, port arrival and departure reports, invoices, and vessel schedules; recalculating the proportion of voyage days as of the reporting date; and verifying subsequent voyage completion information to assess whether revenue has been appropriately recognized based on the stage of completion.

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

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

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

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

As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 Company'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 Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the company audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors' report are Wen-Ling Liu and Xin-Wei Tai.

Deloitte & Touche Taipei, Taiwan Republic of China

March 9, 2026

Notice to Readers

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

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

2025 2024

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OTHER COMPREHENSIVE INCOME

Items that will not be reclassified subsequently to profit or loss:

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

U-MING MARINE TRANSPORT CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

Other Equity Unrealized

Retained Earnings

Exchange

Differences on Translation of the Financial Statements of

Valuation Gain

(Loss) on Financial Assets at Fair Value

through Other Gain (Loss) on Gain on

Common Share

Unappropriated

Foreign

Comprehensive

Hedging

Property

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

- 9 -

(Continued)

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

1. GENERAL INFORMATION

   U-Ming Marine Transport Corporation (the "Company") was incorporated in the Republic of China (ROC) in August 1968. The Company own and manage ships that transport dry bulk cargoes, specializing in cement, coal, iron ore and grain. The Company's shares are listed on the Taiwan Stock Exchange since December 8, 1990.

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

2. APPROVAL OF FINANCIAL STATEMENTS

   The parent company only financial statements were approved by the Company's board of directors on March 4, 2026.

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

   1. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

      The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Company's accounting policies.

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

      New, Amended and Revised Standards and Interpretations

      Effective Date

      Announced by IASB

      Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"

      Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

      January 1, 2026

      January 1, 2026

      Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026

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

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

      New, Amended and Revised Standards and Interpretations

      Effective Date

      Announced by IASB (Note 1)

      Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

      To be determined by IASB

      IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 (Note 2)

      IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (including the 2025 amendments to IFRS 19)

      Amendments to IAS 21 "Translation to a Hyperinflationary Presentation Currency"

      January 1, 2027

      January 1, 2027

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

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

      IFRS 18 "Presentation and Disclosure in Financial Statements"

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

      • To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

      • The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

      • Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

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

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

      • The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.

      • Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the

        Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   1. Statement of compliance

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

   2. Basis of preparation

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

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

      1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

      2. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

      3. Level 3 inputs are unobservable inputs for the asset or liability.

      When preparing the parent company only financial statements, the Company accounts for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the parent company only financial statements, the differences of the accounting treatment between the parent company only basis and the parent company only basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements.

   3. Classification of current and non-current assets and liabilities Current assets include:

      1. Assets held primarily for the purpose of trading;

      2. Assets expected to be realized within 12 months after the reporting period; and

      3. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

      Current liabilities include:

      1. Liabilities held primarily for the purpose of trading;

      2. Liabilities due to be settled within 12 months after the reporting period; and

      3. Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

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

   4. Foreign currencies

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

      At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

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

      Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction and are not retranslated subsequently.

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

   5. Fuel inventory

      Fuel inventory is the stock of fuel, which is stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The replacement cost is used to determine the net realizable value, as fuel inventory is for operations instead of sales. Inventories are recorded at the weighted-average cost on the balance sheet date.

   6. Investments in subsidiaries

      The Company uses the equity method to account for its investments in subsidiaries. A subsidiary is an entity that is controlled by the Company.

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

      The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the entire financial statements of the invested

      company. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years.

      Profits or losses resulting from downstream transactions are eliminated in full in the parent company only financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized in the parent company only financial statements only to the extent of interests in the subsidiaries that are not related to the Company.

   7. Investments in associates

      An associate is an entity over which the Company has significant influence and which is neither a subsidiary nor an interest in a joint venture.

      The Company uses the equity method to account for its investments in associates. Under the equity method, investments in associates are initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of those associates. The Company also recognizes the changes in the Company's share of the equity of associates.

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

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

   8. Property, plant and equipment

      Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment loss.

      Depreciation of transportation equipment is recognized on a straight-line basis. Depreciation of miscellaneous equipment is recognized on a fixed-percentage-of-declining-balance basis and each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effects of any changes in estimates accounted for on a prospective basis.

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

   9. Intangible assets

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

   10. Impairment of property, plant and equipment and intangible assets

       At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that those assets have suffered an

       impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the coverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

   11. Financial instruments

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

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

       1. Financial assets

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

          1. Measurement category

             Financial assets are classified into the following categories: Financial assets at amortized cost and equity instruments at FVTOCI.

             1. Financial assets at amortized cost

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

                1. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

                2. 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.

                   Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost, other receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

                   Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for:

                   1. Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit adjusted effective interest rate to the amortized cost of the financial asset; and

                   2. Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

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

                   1. Significant financial difficulty of the issuer or the borrower;

                   2. Breach of contract, such as a default;

                   3. It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or

                   4. The disappearance of an active market for that financial asset because of financial difficulties.

                   Cash equivalents include time deposits, which are short-term and highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

             2. Investments in equity instruments at FVTOCI

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

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

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

          2. Impairment of financial assets and contract assets

             The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables) and contract assets.

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

             amount equal to 12-month ECLs.

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

             For internal credit risk management purposes, the Company determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Company):

             1. Internal or external information show that the debtor is unlikely to pay its creditors.

             2. When a financial asset is more than 365 days past due unless the Company has reasonable and corroborative information to support a more lagged default criterion.

             The Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

          3. Derecognition of financial assets

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

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

       2. Equity instruments

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

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

       3. Financial liabilities

          1. Subsequent measurement

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

          2. Derecognition of financial liabilities

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

   12. Revenue recognition

       Revenue from the rendering of services

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

       As the Company provides shipping and vessel management services, customers simultaneously receive and consume the benefits provided by the Company's performance. Consequently, the related revenue is recognized when services are rendered. Revenue from shipping (voyage charter) services is recognized based on the stage of completion of the voyage. Payment for shipping services is not due from the customer until a certain period after the completion of cargo loading; therefore, where the consideration received from customers exceeds the revenue recognized, the excess is recognized as a contract liability. Conversely, where the Company has provided services but does not yet have an unconditional right to consideration, the excess is recognized as a contract asset. Revenue from vessel management services is recognized based on the number of days elapsed during the period in which the services are provided.

       The Company includes all or a portion of the estimated variable consideration in the transaction price only to the extent that it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

   13. Leases

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

       For a contract that contains a lease component and non-lease components, the Company allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately. However, for the lease of transportation equipments in which the Company is a lessee and related transportation services are provided by a lessor, the Company elects to account for the lease and non-lease components as a single lease component.

       1. The Company as lessor

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

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

          Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

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

       2. The Company as lessee

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

       Variable lease payments that do not depend on an index or a rate are recognized as expenses in the

       periods in which they are incurred.

   14. Borrowing costs

       All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

   15. Employee benefits

       1. Short-term employee benefits

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

       2. Retirement benefits

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

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

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

       3. Other long-term employee benefits

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

   16. Taxation

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

       1. Current tax

          Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the Income Tax Act in the ROC.

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

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

       2. Deferred tax

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

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

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

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

          Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

       3. Current and deferred taxes for the year

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

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

   When developing material accounting estimates, the Company considers the possible impact on relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

   Key Sources of Estimation Uncertainty

   Timing of Revenue Recognition for Dry Bulk Voyage Charters

   Revenue from dry bulk voyage charters is recognized based on the stage of completion of each voyage, measured by reference to the proportion of actual voyage days elapsed to the estimated total voyage days as of the end of the reporting period. The estimated total voyage days are determined by management based on voyage planning and operating conditions for each voyage, which involve significant judgment. Differences between actual voyage days and the original estimates may affect the measurement of progress toward satisfaction of the performance obligation and, consequently, the amount of revenue recognized in the respective periods.

6. CASH AND CASH EQUIVALENTS

   December 31

   2025 2024

   Cash on hand $ 902 $ 879

   Checking accounts and demand deposits 62,156 66,382 Cash equivalents

   Time deposits - 12,924

   $ 63,058 $ 80,185

   The market rate intervals of time deposits at the end of the reporting period were as follows:

   December 31

   2025 2024

   Time deposits - 1.69%-1.70%

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

   December 31

   Equity Instruments	2025	2024
   Current Domestic listed shares	$ 2,367,997	$ 2,381,827
   Non-current Domestic unlisted shares	$ 891,185	$ 848,753

   These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Company's strategy of holding these investments for long-term purposes.

   Refer to Table 3 for detailed information relating to the Company's investments.

   Refer to Note 23 for information relating to investments in equity instruments at FVTOCI pledged as security.

8. TRADE RECEIVABLES

   December 31

   	2025	2024
   At amortized cost	$ 66,050	$ 21,454
   Related parties	$ 94,356	$ 92,872

   The Company receives freight charges that amount to 90% to 95% of the total contract price within 3 to 8 days from completion of loading and settles demurrage with customer upon completion of each voyage period. The outstanding period of demurrage depends on progress of settlement, normally longer than the outstanding period of freight charge.

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

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

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

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

   December 31, 2025

   0 to 30 Days

   31 to 90 Days

   91 to 180

   Days

   181 to 365

   Days

   Over 365

   Days Total

   Gross carrying amount Loss allowance Amortized cost	$ 159,832 - $ 159,832	$ 477 - $ 477	$ - - $ -	$ - - $ -	$ 97 - $ 97	$ 160,406 - $ 160,406
   December 31, 2024
   	0 to 30 Days	31 to 90 Days	91 to 180 Days	181 to 365 Days	Over 365 Days	Total
   Gross carrying amount	$ 79,804	$ 2,272	$ 32,250	$ -	$ -	$ 114,326
   Loss allowance	-	-	-	-	-	-
   Amortized cost	$ 79,804	$ 2,272	$ 32,250	$ -	$ -	$ 114,326

   The Company did not recognize an allowance for impairment loss as of December 31, 2025 and 2024 and there are no the movements of the loss allowance during the year.

9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD December 31

   	2025	2024
   Subsidiaries	$ 62,157,939	$ 62,513,197
   Associates	2,294,496	2,318,879
   	$ 64,452,435	$ 64,832,076

   1. Investments in subsidiaries December 31 2025 2024 Carrying

      Amount

      % of

      Ownership

      Carrying

      Amount

      % of

      Ownership

      U-Ming Marine Transport (Singapore) Private Limited
      (U-Ming Singapore)	$ 44,722,219	100	$ 44,847,600	100
      U-Ming Marine Transport (Hong
      Kong) Ltd. (U-Ming Hong Kong)	11,484,185	100	11,952,396	100
      Yue-Li Investment Corporation
      (Yue-Li)	2,881,732	68	2,894,541	68
      Yue-Tung Investment Corporation
      (Yue-Tung)	2,414,126	74	2,591,384	74
      U-Ming Marine Offshore Company
      Limited (U-Ming Marine
      Offshore)	655,677	100	227,276	100
      	$ 62,157,939		$ 62,513,197

      The calculation of the investments accounted for using the equity method and the share of profit or loss and other comprehensive income of the investments were based on the subsidiaries' audited financial statements.

      The Company acquired 49% of U-Ming Marine Offshore's equity for $128,036 thousand from a non-related party in October 2024. In August and November 2025, the Company made capital contributions in U-Ming Marine Offshore by $290,000 thousand and $130,000 thousand, respectively. The Company's ownership interest remained at 100% after the capital increases.

   2. Investments in associates

      For the Year Ended December 31

      	2025	2024
      Global Energy Maritime Co., Ltd. Aggregate information of associates:	$ 2,294,496	$ 2,318,879

      For the Year Ended December 31 2025 2024

      The Company's share of:

      Profit	$ 160,982	$ 114,461
      Other comprehensive income	(82,454)	122,010
      Total comprehensive income for the year	$ 78,528	$ 236,471

      The share of profit or loss and other comprehensive income recognized from the investment accounted for using the equity method was calculated based on the associate's financial statements that have been audited for the same period.

10. PROPERTY, PLANT AND EQUIPMENT

    	Land	Transportation	Miscellaneous	Total
    Cost Balance at January 1, 2024	$ 1,092	$ 4,204,051	$ 104,254	$ 4,309,397
    Additions	-	639,526	25,437	664,963
    Disposals Transfer of prepayment of	-	(253,069)	-	(253,069)
    equipment -		384,040	3,789	387,829
    Derecognition by replacement -		(67,081)	-	(67,081)
    Balance at December 31, 2024 $ 1,092		$ 4,907,467	$ 133,480	$ 5,042,039
    Accumulated depreciation and impairment Balance at January 1, 2024	$ -	$ 2,523,464	$ 87,908	$ 2,611,372
    Depreciation	-	211,710	8,152	219,862
    Disposals	-	(252,654)	-	(252,654)
    Derecognition by replacement	-	(67,081)	-	(67,081)
    Balance at December 31, 2024	$ -	$ 2,415,439	$ 96,060	$ 2,511,499
    Carrying amounts at December 31, 2024	$ 1,092	$ 2,492,028	$ 37,420	$ 2,530,540
    Cost Balance at January 1, 2025	$ 1,092	$ 4,907,467	$ 133,480	$ 5,042,039
    Additions	-	60,808	1,860	62,668
    Disposals Transfer of prepayment of	-	-	-	-
    equipment -		-	-	-
    Derecognition by replacement -		(60,987)	-	(60,987)
    Balance at December 31, 2025 $ 1,092		$ 4,907,288	$ 135,340	$ 5,043,720
    Accumulated depreciation and impairment Balance at January 1, 2025	$ -	$ 2,415,439	$ 96,060	$ 2,511,499
    Depreciation	-	245,414	14,343	259,757
    Disposals	-	-	-	-
    Derecognition by replacement	-	(60,987)	-	(60,987)
    Balance at December 31, 2025	$ -	$ 2,599,866	$ 110,403	$ 2,710,269
    Carrying amounts at December 31, 2025	$ 1,092	$ 2,307,422	$ 24,937	$ 2,333,451

    The Company carries out a periodic review of the impairment assessment for the vessels used for transportation; after the review, for the year ended December 31, 2025 and 2024, there was no indication of impairment.

    The transportation equipment is depreciated on a straight-line basis, and the miscellaneous assets are depreciated on a fixed-percentage-on-declining-balance method over their estimated useful lives as follows:

    Transportation equipment 10-18 years

    Dry dock 2-2.5 years

    Miscellaneous 3-5 years

    Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 23.

11. LEASE ARRANGEMENTS

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

    For the Year Ended

    December 31

    		2025	2024
    	Expenses relating to short-term leases	$ 36,412	$ 32,362
    	Expenses relating to low-value asset leases	$ 499	$ 439
    	Total cash outflow for leases	$ 36,911	$ 32,801
    12.	BORROWINGS

    1. Short-term loans (Notes 23)

       December 31

       2025 2024

       Unsecured borrowings

       Credit borrowings $ 5,080,000 $ 4,780,000

       Interest rate 1.83%-1.90% 1.86%-1.93%

    2. Short -term bills payable December 31, 2025

       Promissory Institution Nominal Amount Discount Amount Carrying Value Interest Rate

       Commercial paper

       Mega Bills Finance Co., Ltd. $ 750,000 $ (273) $ 749,727 1.90% December 31, 2024

       Promissory Institution Nominal Amount Discount Amount Carrying Value Interest Rate

       Commercial paper

       Mega Bills Finance Co., Ltd. $ 750,000 $ (40) $ 749,960 1.94%

    3. Long-term borrowings

December 31

1. Secured bank loans are mainly for the purpose of construction of vessels, and are secured by the related vessels under construction as collaterals. The final maturity date of the loan ranges from August 2032 to June 2034 with interest rate ranges of 2.05% and 2.04%-2.05% as of December 31, 2025 and 2024.

2. Unsecured bank loans are for the purpose of general operations, with the final maturity date ranging from June 2026 to September 2030 with interest rate ranges of 1.84%-2.18% and 1.85%-2.27% as of December 31, 2025 and 2024, respectively.

1. OTHER PAYABLES

   For the Year Ended December 31

   		2025	2024
   	Remuneration to directors	$ 160,828	$ 170,079
   	Employees' compensation	67,351	81,533
   	Salaries and bonuses	54,721	54,828
   	Interest	27,817	23,307
   	Dry docks	18,156	22,582
   	Port charges	14,420	14,688
   	Material consumption and repairs	6,610	11,490
   	Others	103,689	78,672
   		$ 453,592	$ 457,179
   14.	RETIREMENT BENEFIT PLANS

   1. Defined contribution plans

      The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

   2. Defined benefit plans

      The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 5% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Company has no right to influence the investment policy and strategy.

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

      December 31

      	2025	2024
      Present value of defined benefit obligation	$ 191,977	$ 172,258
      Fair value of plan assets	(122,056)	(109,059)
      Net defined benefit liabilities	$ 69,921	$ 63,199

      Movements in net defined benefit liabilities were as follows:

      Present Value of the Defined Benefit Obligation Fair Value of the Plan Assets Net Defined Benefit Liabilities

      Balance on January 1, 2024	$ 169,832		$ (93,383)	$ 76,449
      Current service cost	2,463		-	2,463
      Net interest expense (income)	2,123		(1,205)	918
      Recognized in profit or loss	4,586		(1,205)	3,381
      Remeasurement Return on plan assets (excluding amounts included in net interest)	-		(8,021)	(8,021)
      Actuarial loss - changes in demographic assumptions	642		-	642
      Actuarial gain - changes in financial
      assumptions	(3,069)		-	(3,069)
      Actuarial loss - experience adjustments	4,053		-	4,053
      Recognized in other comprehensive income	1,626		(8,021)	(6,395)
      Contributions from the employer	-		(6,450)	(6,450)
      Benefits paid	(3,786)		-	(3,786)
      Balance on December 31, 2024	172,258		(109,059)	63,199
      Current service cost	2,462		-	2,462
      Net interest expense (income)	2,583		(1,687)	896
      Recognized in profit or loss	5,045		(1,687)	3,358
      Remeasurement Return on plan assets (excluding amounts included in net interest)	-		(7,389)	(7,389)
      Actuarial gain - changes in financial
      assumptions	1,449		-	1,449
      Actuarial loss - experience adjustments	17,047		-	17,047
      Recognized in other comprehensive income	18,496		(7,389)	11,107
      Contributions from the employer	-		(7,188)	(7,188)
      Benefits paid	(3,822)		3,267	(555)
      Balance on December 31, 2025	$ 191,977		$ (122,056)	$ 69,921

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

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

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

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

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

December 31

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

December 31

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

December 31

Expected contributions to the plan for the next year $ 7,614 $ 6,872

Average duration of the defined benefit obligation 7.4 years 8.3 years

1. EQUITY

   1. Common share capital

      December 31

      	2025	2024
      Number of shares authorized (in thousands)	880,000	880,000
      Shares authorized	$ 8,800,000	$ 8,800,000
      Number of shares issued and fully paid (in thousands)	845,056	845,056
      Shares issued	$ 8,450,557	$ 8,450,557

   2. Capital surplus

      December 31

      	2025	2024
      May be used to offset a deficit, distributed as cash dividends or transferred to share capital (1)
      Conversion of bonds	$ 93,474	$ 93,474
      Excess of merger (2)	5,428	5,428
      May only be used to offset a deficit
      Donations	$ 16,090	$ 16,119
      May not be used for any purpose
      Share of change in capital surplus of associates	853	965
      	$ 115,845	$ 115,986

      1. Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus).

      2. The excess of merger recognized from the Company's acquisition of China Fortune Marine Transport Corporation in 1993 was due to the excess of its net asset value over the par value of the newly issued shares.

   3. Retained earnings and dividend policy

   Under the dividend policy as set forth in the Articles of Incorporation, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes and offsetting losses of previous years. Providing that there is any remaining profit, 10% of the unappropriated earnings from the net profit after tax for the current period coupled with other items that recognized in retained earning directly for the current period shall be set aside as legal reserve (This requirement does not apply once the legal reserve has reached an amount equal to the Company's paid-in capital). After setting aside or reversing a special reserve in accordance with the laws and regulations, the Company shall use the remaining profit together with any undistributed retained earnings as the basis for the Company's board of directors to propose a distribution plan, which should be resolved in the shareholders' meeting for the distribution of dividends and bonuses to shareholders.

   Dividends distributed to stockholders are decided after consideration has been given to the business perspective of the Company, the life cycle of various products or service provided, capital requirement in the future and the effect of possible changes of tax laws. Dividends shall be distributed under the objective of maintaining a stable dividend policy. For issue of dividends, except to save for the purposes of improving the financial structure, reinvestments, production expansion or other capital expenditures in which capital is required, dividends distributed shall not be lower than 50% of net profit after tax deduction for offset of loses, legal reserve, and special reserve, and the cash dividend shall not be lower than 10% of shareholders' bonus of that year.

   For the policies on the distribution of employees' compensation and remuneration of directors stipulated in the Articles of Incorporation, refer to employees' compensation and remuneration of directors in Note 17(c).

   The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

   With respect to the cumulative net amount of other deductions from equity in a preceding period to allocate special reserve, the Company may make the allocation based merely on the undistributed earnings of the previous period.

   The appropriations of earnings for 2024 and 2023 which have been approved in the shareholders' meetings on May 27, 2025 and June 3, 2024, respectively, were as follows:

   Appropriation of Earnings Dividend Per Share

   2024		2023	2024	2023
   Legal reserve	$ 583,107	$ 273,723
   Cash dividends	2,704,178	2,028,134	$ 3.2	$ 2.4

   The appropriation of earnings for 2025 which had been proposed by the Company's board of directors on March 4, 2026, were as follows:

   Appropriation of Earnings Dividend Per Share

   Legal reserve $ 368,438

   Cash dividends 2,366,156 $ 2.8

   $ 2,734,594

   The appropriation of earnings for 2025 are subject to the resolution of the shareholders' meeting to be held on May 21, 2026.

2. REVENUE

   1. Disaggregation of revenue

      For the Year Ended December 31

      	2025	2024
      Transportation (Note)	$ 1,421,191	$ 1,298,100
      Vessel management	539,506	520,947
      Others	892	1,237
      	$ 1,961,589	$ 1,820,284

      Note: Transportation revenue includes revenue from voyage charters, time charters, and bareboat charters.

      Refer to Note 4 for information relating to the relevant accounting policies.

   2. Contract balances

      	December 31,	December 31,
      	2025	2024	January 1, 2024
      Contract assets - transportation services	$ -	$ 45,559	$ -
      Contract liabilities - transportation services	$ 17,353	$ 9,347	$ 68,524

      The Company provides for expected credit losses prescribed, which permits the use of a lifetime expected loss provision for the contract assets. The contract assets will be transferred to trade receivables when the corresponding invoice is billed to the client, and the contract assets have substantially the same risk characteristics as the trade receivables for the same types of contracts. Therefore, the Company concluded that the expected loss rates for trade receivables can be applied to the contract assets. No impairment losses of contract assets were recognized in 2025 and 2024, respectively.

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

3. NET PROFIT AND OTHER COMPREHENSIVE INCOME

   1. Depreciation and amortization by function

      For the Year Ended

      December 31

      2025 2024

      Depreciation of property, plant and equipment

      Operating costs $ 245,414 $ 211,710

      Operating expenses 14,343 8,152

      $ 259,757 $ 219,862

      Amortization of intangible assets

      Operating expenses $ 17,005 $ 20,681

   2. Employee benefits expense

      For the Year Ended December 31

      2025				2024
      	Operating	Operating		Operating	Operating
      	Costs	Expenses	Total	Costs	Expenses	Total
      Short-term benefits
      Salary expenses	$ 382,351	$ 169,741	$ 552,092	$ 361,386	$ 153,113	$ 514,499
      Insurance expenses	26,457	13,960	40,417	24,549	12,444	36,993
      Remuneration of
      directors	-	41,120	41,120	-	49,614	49,614
      	408,808	215,171	633,629	385,935	215,171	601,106
      Post-employment benefits
      (Note 14) Defined contribution plans	14,184	6,965	21,149	13,448	6,574	20,022
      Defined benefit plans	454	2,904	3,358	405	2,976	3,381
      	14,638	9,869	24,507	13,853	9,550	23,403
      Other employee benefits 22,439		45,186	67,625	22,938	53,857	76,795
      Total employee benefits

      expense $ 445,885 $ 279,876 $ 725,761 $ 422,726 $ 278,578 $ 701,304

      The average number of employees of the Company were 305 and 306, which include 10 and 9 directors not serving concurrently as employees, for the years ended December 31, 2025 and 2024.

      The average employee benefit expenses were $2,321 thousand and $2,194 thousand for the years ended December 31, 2025 and 2024, respectively. The average salary expenses were $1,871 thousand and

      $1,732 thousand for the years ended December 31, 2025 and 2024, respectively. The average salary expenses Increased by 8.03% in 2025 compared to the previous year.

      Reward policies of the Company were as follows:

      1. The Company accrued remuneration of directors and managers according to the Articles of Incorporation. After the Remuneration Committee reviews and determines the remuneration and submit the results to board of directors for discussions, the remuneration is subject to the resolution of the shareholders' meeting. Make the remuneration procedure based on the standards of bulk shipping operators listed at home and abroad and the external compensation benchmarking companies. The remuneration of directors are paid according to the results of "Self-Evaluation or Peer Evaluation of the Board of Directors," the business performance, future development and operation risks. The remuneration of managers are paid according to the regulation of bonus which include the business performance of the Company and personal performance.

      2. The reward standards, structures, and institutions for directors, and managers is based on the annual business performance, which also considers the future risk management and refers to the proportion stipulated in the Articles of Incorporation. And also be adjusted to the state of operation and the laws. In addition, reward policies, institutions, standards, and structures for directors, and managers are regularly evaluated by the "Remuneration Committee" and recommended for discussion at the board meeting.

      3. The Company also set goals for annual staff performance appraisal based on the regulations in Working Rules and the related codes, which is taken as the foundation for awards and punishments. Wherein, the Codes of Ethical Conduct is also a key evaluation index. "The regulation of performance bonus for on-shore personnel" is made to the Company. The bonus is based on the business performance of the vessel and the Company would calculate the bonus on the year end.

   3. Employees' compensation and remuneration of directors

      The Company accrued employees' compensation and remuneration of directors at the rates of 1% and no higher than 1%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the amendment to the Articles of incorporation was resolved by the shareholders' meeting in 2025, which, stipulating that employees' compensation and directors' remuneration should be at the rate of 1%, and no higher than 1%, respectively pre-tax profit before employees' compensation and directors' remuneration. In addition, no less than 2% of the employees' compensation shall be allocated to non-executive employees. The compensation of employees (including non-executive employees) and the remuneration of directors for the years ended December 31, 2025 and 2024 were approved by the Company's board of directors on March 4, 2026 and March 6, 2025, respectively, were as follows:

      For the Year Ended December 31

      	2025 Accrual Rate Cash Amount	2024 Accrual Rate Cash Amount
      Employees' compensation	1% $ 38,854	1% $ 48,104
      Remuneration of directors	1% 38,854	1% 48,104

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

      There was no difference between the actual amounts of employees' compensation and remuneration of directors approved and the amounts recognized in the parent company only financial statements for the years ended December 31, 2024 and 2023.

      Information on the employees' compensation and remuneration of directors resolved by the Company's board of directors in 2024 and 2023 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

4. INCOME TAXES

   1. Major components of income tax (benefit) expense recognized in profit or loss

      For the Year Ended December 31

      	2025	2024
      Current tax In respect of the current year	$ 37,953	$ 63,838
      Adjustments for prior years	227	(51,065)
      Income tax on unappropriated earnings	127,911	17,507
      Deferred tax	166,091	30,280
      In respect of the current year	1,188	2,487
      Income tax expense recognized in profit or loss	$ 167,279	$ 32,767

      A reconciliation of accounting profit and income tax benefit was as follows:

      For the Year Ended December 31

      	2025	2024
      Profit before tax	$ 3,807,673	$ 4,714,233
      Income tax expense calculated at the statutory rate	$ 761,535	$ 942,846
      Non-deductible expenses in determining taxable income	265	226
      Tax-exempt income	(740,483)	(896,290)
      Unrecognized temporary differences	17,824	19,543
      Income tax on unappropriated earnings	127,911	17,507
      Adjustments for prior years	227	(51,065)
      Income tax expense recognized in profit or loss	$ 169,279	$ 32,767
      b. Current tax assets and liabilities
      December 31
      	2025	2024
      Current tax liabilities
      Income tax payable	$ 165,837	$ 81,188

      1. Deferred tax assets and liabilities

         For the year ended December 31, 2025

         Opening Balance Recognized in Profit or Loss Closing Balance

         Deferred tax assets

         Temporary differences

         Defined benefit plans $ 451 $ (451) $ -

         Deferred tax liabilities

         Temporary differences

         Unrealized exchange gain	$ 15,107	$ 311	$ 15,418
         Defined benefit plans	-	426	426
         	$ 15,107	$ 737	$ 15,844
         For the year ended December 31, 2024
         	Opening Balance	Recognized in Profit or Loss	Closing Balance
         Deferred tax assets
         Temporary differences Defined benefit plans	$ 1,822	$ (1,371)	$ 451
         Property, plant and equipment	(2)	2	-
         	$ 1,820	$ (1,369)	$ 451
         Deferred tax liabilities
         Temporary differences Unrealized exchange gain	$ 13,989	$ 1,118	$ 15,107

      2. Income tax assessments

      The tax returns through 2023 of the Company have been assessed by the tax authorities.

5. EARNINGS PER SHARE

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

   1. Net profit for the year

      For the Year Ended December 31 2025 2024

      Earnings used in the computation of basic and diluted earnings

      per share $ 3,640,394 $ 4,681,466

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

      For the Year Ended December 31

      	2025	2024
      Weighted average number of ordinary shares used in the computation of basic earnings per share	845,056	845,056
      Effect of potentially dilutive ordinary shares: Employee's compensation	759	918

      Weighted average number of ordinary shares used in the

      computation of diluted earnings per share 845,815 845,974

      The Company may settle the compensation paid to employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

6. CAPITAL MANAGEMENT

   The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Company (comprising issued capital, reserves, retained earnings, and other equity).

   Key management personnel of the Company review the capital structure on a regular basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Company may adjust the amount of dividends paid to shareholders, and/or the amount of new debt issued or existing debt redeemed.

   The Company is not subject to any externally imposed capital requirements.

7. FINANCIAL INSTRUMENTS

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

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

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

      1. Fair value hierarchy December 31, 2025

         Level 1 Level 2 Level 3 Total

         Financial assets at FVTOCI
         Domestic listed shares	$ 2,367,997	$ -	$ -	$ 2,367,997
         Domestic unlisted shares	-	-	891,185	891,185
         	$ 2,367,997	$ -	$ 891,185	$ 3,259,182

         December 31, 2024

         Level 1 Level 2 Level 3 Total

         Financial assets at FVTOCI
         Domestic listed shares	$ 2,381,827	$ -	$ -	$ 2,381,827
         Domestic unlisted shares	-	-	848,753	848,753
         	$ 2,381,827	$ -	$ 848,753	$ 3,230,580

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

      2. Valuation techniques and inputs applied for Level 3 fair value measurement

      The fair values of domestic unlisted equity securities were determined using the asset-based approach. The asset-based approach assesses the fair-market value of each asset and liability of the target of evaluation, and considers risk factors like the liquidity discount rate to estimate the target's fair value.

   3. Categories of financial instruments

      December 31

      2025 2024

      Financial assets

      Financial assets at FVTOCI - equity instruments	$ 3,259,182	$ 3,230,580
      Financial assets at amortized cost (1)	306,799	263,795

      Financial liabilities

      Financial assets at amortized cost (2) 31,323,731 30,413,779

      1. The financial assets at amortized cost comprise cash and cash equivalents, trade receivables (including related parties), other receivables and refundable deposits.

      2. The financial liabilities measured at amortized cost comprise short-term and long-term loans (including current portion of long-term borrowings), short-term bills payable, trade payable (including related parties) and other payable.

   4. Financial risk management objectives and policies

The Company's major financial instruments include equity investments, trade receivables, trade payables and borrowings. The Company's corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Company's policies approved by the board of directors, which provided written principles on foreign currency exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis.

1. Market risk

   The Company's activities exposed it primarily to the financial risks of changes in interest rates (see

   (b) below).

   1. Foreign currency risk

      The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) exposed to foreign currency risk at the end of the reporting period are set out in Note 25.

      Sensitivity analysis

      The Company was mainly exposed to USD.

      The following table details the Company's sensitivity to a 10% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity analysis included outstanding foreign currency denominated monetary items and foreign currency denominated loans due to foreign operations, and adjusts their translation at the end of the reporting period for a 10% change in foreign currency rates. A positive/negative number below indicates an increase/a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 10% against the relevant currency. For a 10% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit.

      USD

      For the Year Ended December 31 2025 2024

      Profit or loss $ (2,547) (i) $1,749 (i)

      i. This was mainly attributable to the USD trade payables and trade receivables held by the Company.

   2. Interest rate risk

      The Company is exposed to interest rate risk because entities in the Company borrow funds at both fixed and floating interest rates.

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

      December 31

      	2025	2024
      Fair value interest rate risk
      Financial assets	$ 42,500	$ 50,424
      Financial liabilities	8,829,727	7,529,960
      Cash flow interest rate risk
      Financial assets	12,090	5,559
      Financial liabilities	22,010,000	22,380,000

      The Company is exposed to cash flow interest rate risk in relation to floating-rate bank borrowings.

      The Company is also exposed to fair value interest rate risk in relation to fixed-rate bank borrowings. It is the Company's policy to keep its borrowings at fixed rate of interests so as to minimize the cash flow interest rate risk.

      Sensitivity analysis

      The sensitivity analyses below were determined based on the Company's exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year.

      If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company's pre-tax profit for the years ended December 31, 2025 and 2024 would decrease/increase by $109,990 thousand and $111,872 thousand, respectively, which was mainly attributable to the increase/decrease of interest expense on its variable-rate bank borrowings.

   3. Other price risk

   The Company was exposed to equity price risk through its investments in equity securities. The Company manages this risk by maintaining a portfolio of investments with different risk levels. The Company's equity price risk was mainly concentrated on equity instruments in Taiwan. Investments in equity securities are strategic investments made by the financial department of the Company.

   Sensitivity analysis

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

   If equity prices had been 10% higher/lower, pre-tax other comprehensive income for the years ended December 31, 2025 and 2024 would increase/decrease by $325,918 thousand and

   $323,058 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

2. Credit risk

   Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. As at the end of the reporting period, the Company's maximum exposure to credit risk which will cause a financial loss to the Company because of the failure of the counterparty to discharge its obligation and the financial guarantees provided by the Company could arise from the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets and the maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.

   The Company adopted a policy of credit risk management regarding operations. Risk assessment of counterparties takes into consideration the financial situation, credit rating by both external and internal parties, historical transaction records, current economic condition, and other factors that might affect the payment ability of the counterparty. This information is supplied by independent rating agencies where available and, if not available, the Company uses other publicly available financial information and its own trading records to rate its major customers.

   The Company's exposure and the credit ratings of its counterparties are continuously monitored. When the counterparties are associates, the Company will consider them as of similar nature with the counterparties. For the years ended December 31, 2025 and 2024, the Company did not have any material credit risk exposure to any single counterparty or to any group of counterparties with similar characteristics.

3. Liquidity risk