Wisdom Marine Group FY 2025

WISDOM MARINE LINES CO., LIMITED (CAYMAN)

AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT

31 DECEMBER 2025 AND 2024

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

TABLE OF CONTENTS

Contents		Page
Cover page		1
Table of contents		2
Statement by directors		3
Independent auditors’ report		4-7
Consolidated balance sheets		8-9
Consolidated statements of comprehensive income		10
Consolidated statements of changes in equity		11
Consolidated statements of cash flows		12
Notes to the consolidated financial statements
1.	History and organization	13
2. Date and procedures of authorization of financial statements for issue		13
3. Newly issued or revised standards and interpretations		13-16
4. Summary of significant accounting policies		16-45
5. Significant accounting judgments, estimates and assumptions		45-47
6. Contents of significant accounts		47-74
7. Related party transactions		74-79
8. Pledged assets		79
9. Significant commitments and contingencies		79-80
10. Losses due to major disasters		80
11. Significant subsequent events		81
12. Others		81-94
13. Other disclosures		94
14. Segment information		94-95

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 2025 and 2024 on 13 March 2026. 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 2025 and 2024 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

13 March 2026

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 2025, and the related consolidated statements of comprehensive income,

changes in equity and cash flows for the year ended 31 December 2025, 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 2025, and their

consolidated financial performance and cash flows for the year ended 31 December 2025, 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.

Revenue recognition

Hire revenues amounted to $534,320,271 for the year ended 31 December 2025, 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 2025, the amount of the Group’s property, plant and equipment was

$2,109,885,197, 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.

Those charged with governance, including audit committee, are responsible for overseeing the

financial reporting process of the Company and its subsidiaries.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with 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 internal control of the Company and its subsidiaries.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the 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.

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

13 March 2026

	Notes	31 December 2025	31 December 2024
ASSETS
Cash and cash equivalents	6.(1)	$151,501,120	$135,150,365
Current financial assets at fair value through profit or loss	6.(2)	984,000	822,100
Current financial assets at fair value through
other comprehensive income	6.(3) & 8	9,289,311	9,717,541
Accounts receivable, net	6.(4) & 6.(16)	6,193,596	4,832,273
Accounts receivable due from related parties, net	6.(4), 6.(16) & 7	282,003	283,147
Other receivables	7	8,672,415	6,619,288
Inventories	6.(5)	4,666,655	2,934,774
Prepayments		3,089,950	3,834,012
Other current financial assets	6.(1) & 8	26,528,206	36,491,161
Other current assets, other	7	36,558,123	34,765,557
Total current assets		247,765,379	235,450,218
Investments accounted for using the equity method	6.(6)	10,401,376	9,902,886
Property, plant and equipment	6.(7), 7 & 8	2,109,885,197	2,295,049,049
Right-of-use assets	6.(12) & 7	132,667,280	177,747,906
Investment property, net	6.(8) & 8	2,281,173	2,194,490
Deferred tax assets	6.(20)	33,398	10,997
Guarantee deposits paid		6,735,860	12,819,612
Net defined benefit asset, non-current	6.(13)	42,678	36,720
Other non-current assets	6.(9)	75,605,061	49,993,014
Total non-current assets		2,337,652,023	2,547,754,674
TOTAL ASSETS		$2,585,417,402	$2,783,204,892

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 2025 AND 2024

(All Amounts Expressed in US Dollars)

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (CONT’D)

(All Amounts Expressed in US Dollars)

	Note	31 December 2025	31 December 2024
LIABILITIES
Short-term borrowings	6.(10)	$66,893,853	$21,470,519
Accounts payable		5,802,178	6,017,870
Accounts payable to related parties	7	-	45,982
Other accrued expenses	7	21,962,681	22,897,429
Advance receipts		14,116,846	12,816,169
Other current liabilities, other		9,056,222	5,028,447
		117,831,780	68,276,416
Current lease liabilities	6.(12) & 7	17,116,603	28,488,199
Long-term borrowings, current portion	6.(10)	112,157,834	173,686,399
Long-term accounts payable, current portion	6.(12)	6,488,407	7,735,490
Long-term accounts payable to related parties, current portion	6.(12) & 7	-	555,627
		135,762,844	210,465,715
Total current liabilities		253,594,624	278,742,131
Bonds payable	6.(11)	31,582,705	30,197,916
Long-term borrowings, non-current portion	6.(10)	564,389,754	626,205,475
Deferred tax liabilities	6.(20)	23,767	24,759
Non-current lease liabilities	6.(12) & 7	76,812,482	93,931,608
Long-term accounts payable, non-current portion	6.(12)	48,931,376	63,199,737
Long-term accounts payable to related parties, non-current portion	6.(12) & 7	76,097,278	92,711,038
Guarantee deposits received		242	183
Total non-current liabilities		797,837,604	906,270,716
TOTAL LIABILITIES		1,051,432,228	1,185,012,847
EQUITY	6.(14)
Common stock		238,739,686	238,739,686
Capital surplus		1,237,415	1,237,415
Legal reserve		6,960	6,960
Unappropriated retained earnings		1,091,681,296	1,089,832,443
Exchange differences on translation of foreign financial statements		202,360,057	268,608,077
Unrealized gains (losses) from financial assets measured
at fair value through other comprehensive income		(40,240)	(232,536)
TOTAL EQUITY		1,533,985,174	1,598,192,045
TOTAL LIABILITIES AND EQUITY		$2,585,417,402	$2,783,204,892

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

31 DECEMBER 2025 AND 2024

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(All Amounts Expressed in US Dollars)

	Notes	2025	2024
Operating revenue	6.(15) & 7	$541,957,260	$634,431,170
Operating costs	6.(17) & 7	406,424,259	417,680,331
Gross profit from operations		135,533,001	216,750,839
Operating expenses
Administrative expenses	6.(17) & 7	5,023,288	5,149,957
Expected credit losses	6.(16)	960,104	280,486
Total operating expenses		5,983,392	5,430,443
Net operating income		129,549,609	211,320,396
Non-operating income and expenses
Interest income	6.(18)	4,891,790	7,239,525
Other income, others	6.(18) & 7	840,785	320,167
Gains on disposal of property, plant and equipment	6.(7), 6.(18) & 7	44,036,353	31,267,595
Gains (losses) on financial assets (liabilities)
at fair value through profit or loss	6.(2) & 6.(18)	197,125	(26,743)
Miscellaneous expenses	6.(18)	(793,327)	(1,208,412)
Losses on disposals of investments	6.(18)	-	(11,418)
Foreign exchange (losses) gains	6.(18)	(8,089,805)	6,216,483
Other impairment loss	6.(6) & 6.(18)	-	(1,712,900)
Interest expense	6.(7), 6.(11), 6.(18) & 7	(42,566,239)	(61,525,898)
Share of loss of associates and joint ventures accounted
for using the equity method	6.(6)	(1,214,231)	(3,347,544)
Total non-operating income and expenses		(2,697,549)	(22,789,145)
Profit from continuing operations before tax		126,852,060	188,531,251
Income tax expense	6.(20)	600,064	689,372
Net income		126,251,996	187,841,879
Other comprehensive income (loss):	6.(19)
Components of other comprehensive income (loss) that will not be
reclassified to profit or loss
Remeasurement of defined benefit plans		(2,012)	25,491
Income tax (income) expense relating to items that will not be reclassified		(402)	5,098
Components of other comprehensive income (loss) that will be
reclassified to profit or loss
Exchange differences on translation of foreign financial statements		(66,248,020)	8,102,320
Unrealized gains from investments in debt instruments
measured at fair value through other comprehensive income		192,296	157,616
Other comprehensive (loss) income		(66,057,334)	8,280,329
Total comprehensive income		$60,194,662	$196,122,208
Net income attributable to:
Net income attributable to owners of parent		$126,251,996	$187,841,879
Comprehensive income attributable to:
Comprehensive income attributable to owners of parent		$60,194,662	$196,122,208
Basic earnings per share	6.(21)	$0.17	$0.25
Diluted earnings per share	6.(21)	$0.17	$0.25

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

FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024

(All Amounts Expressed in US Dollars)

			Total retained earnings		Other components of equity
						Unrealized gains
					(losses) on financial
					Exchange differences	assets measured at
					on translation of	fair value through
				Unappropriated	foreign financial	other comprehensive
	Common stock	Capital surplus	Legal reserve	retained earnings	statements	income	Total
Balance, 1 January 2024	$238,739,686	$1,237,415	$6,960	$965,322,804	$260,505,757	$(390,152)	$1,465,422,470
Appropriation and distribution of retained earnings:
Cash dividends of ordinary share	-	-	-	(63,352,633)	-	-	(63,352,633)
Profit for the year ended 31 December 2024	-	-	-	187,841,879	-	-	187,841,879
Other comprehensive income for the year ended 31 December 2024	-	-	-	20,393	8,102,320	157,616	8,280,329
Total comprehensive income for the year ended 31 December 2024	-	-	-	187,862,272	8,102,320	157,616	196,122,208
Balance, 31 December 2024	$238,739,686	$1,237,415	$6,960	$1,089,832,443	$268,608,077	$(232,536)	$1,598,192,045
Balance, 1 January 2025	$238,739,686	$1,237,415	$6,960	$1,089,832,443	$268,608,077	$(232,536)	$1,598,192,045
Appropriation and distribution of retained earnings:
Cash dividends of ordinary share	-	-	-	(124,401,533)	-	-	(124,401,533)
Profit for the year ended 31 December 2025	-	-	-	126,251,996	-	-	126,251,996
Other comprehensive income (loss) for the year ended 31 December 2025	-	-	-	(1,610)	(66,248,020)	192,296	(66,057,334)
Total comprehensive income (loss) for the year ended 31 December 2025	-	-	-	126,250,386	(66,248,020)	192,296	60,194,662
Balance, 31 December 2025	$238,739,686	$1,237,415	$6,960	$1,091,681,296	$202,360,057	$(40,240)	$1,533,985,174

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

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024

(All Amounts Expressed in US Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit from continuing operations before tax	$126,852,060	$188,531,251
Adjustments to reconcile net income before tax:
Depreciation expense	150,282,940	152,288,779
Amortization expense	17,954	19,318
Expected credit losses	960,104	280,486
Net (gain) losses on financial assets or liabilities at fair value through profit or loss	(161,900)	94,693
Interest expense	42,566,239	61,525,898
Interest income	(4,891,790)	(7,239,525)
Effect of exchange rate changes of bonds payable	1,314,058	(2,701,131)
Share of loss of associates and joint ventures accounted for using the equity method	1,214,231	3,347,544
Gains on disposals of property, plant and equipment	(44,036,353)	(31,267,595)
Losses on disposals of investments	-	11,418
Impairment loss on non-financial assets	-	1,712,900
Unrealized foreign exchange losses (gains)	3,088,276	(4,472,560)
Amortization of financial assets at fair value through other comprehensive income	(52,470)	(64,320)
Other adjustments	2,699,453	165,751
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	(2,321,427)	(542,553)
Decrease (increase) in accounts receivable-related parties	1,144	16,842
Decrease (increase) in other receivables	(2,232,812)	(561,727)
Decrease (increase) in inventories	(2,027,250)	683,180
Decrease (increase) in prepayments	744,062	(422,110)
Decrease (increase) in other current assets	(1,791,310)	(17,773,807)
Increase (decrease) in accounts payable	(215,692)	259,005
Increase (decrease) in accounts payable to related parties	(45,982)	45,982
Increase (decrease) in other accrued expenses	78,579	1,245,031
Increase (decrease) in advance receipts	1,297,510	(1,778,210)
Increase (decrease) in other current liabilities	(590,237)	(628,150)
Cash generated from operations	272,749,387	342,776,390
Interest received	5,618,258	6,007,940
Interest paid	(43,177,193)	(61,653,377)
Income taxes paid	(625,156)	(773,762)
Net cash flows from operating activities	234,565,296	286,357,191
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income	(1,785,000)	-
Proceeds from disposals of financial assets
at fair value through other comprehensive income	2,500,000	2,295,825
Acquisition of investments accounted for using the equity method	(1,273,074)	(3,710,210)
Acquisition of property, plant and equipment	(28,100,738)	(23,279,945)
Proceeds from disposals of property, plant and equipment	133,074,625	84,406,585
Increase in guarantee deposits paid	(11,227)	(1,285)
Decrease in guarantee deposits paid	6,509,283	-
Acquisition of right-of-use assets	(1,086,819)	(1,403,661)
Decrease (increase) in other financial assets	9,962,955	15,316,637
Decrease (increase) in other non-current assets (prepayments for vessels)	(52,966,700)	(116,098,901)
Net cash flows from (used in) investing activities	66,823,305	(42,474,955)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	85,986,626	31,362,374
Decrease in short-term borrowings	(42,561,404)	(39,400,509)
Proceeds from issuing bonds	-	30,533,282
Repayments of bonds	-	(42,786,531)
Increase in long-term borrowings	220,748,296	417,659,431
Decrease in long-term borrowings	(360,809,228)	(536,715,780)
Increase in guarantee deposits received	122	-
Decrease in guarantee deposits received	(71)	-
Repayments of the principal portion of lease liabilities	(30,183,594)	(12,956,121)
Increase in other financial liabilities	-	49,000,000
Decrease in other financial liabilities	(33,703,399)	(43,337,207)
Distribution of cash dividend	(127,923,256)	(63,052,460)
Net cash used in financing activities	(288,445,908)	(209,693,521)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	3,408,062	(15,984,927)
NET INCREASE IN CASH AND CASH EQUIVALENTS	16,350,755	18,203,788
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	135,150,365	116,946,577
CASH AND CASH EQUIVALENTS, END OF PERIOD	$151,501,120	$135,150,365

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

WISDOM MARINE LINES CO., LIMITED (CAYMAN)

AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

31 DECEMBER 2025 AND 2024

(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 13

March 2026.

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 2025. 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)

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. 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.

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.

C. Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)

This new standard and its amendments 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.

D. Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and

IAS 29)

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

The amendments include:

(a) Clarify that when the entity’s functional currency is that of a non-hyperinflationary

economy but its presentation currency is the currency of a hyperinflationary economy,

the entity shall translate its results and financial position using the closing rate at the

date of the most recent statement of financial position.

(b) In the above circumstances, when the presentation currency ceases to be

hyperinflationary economy, the entity shall not retranslate amounts that arose before

the beginning of the reporting period.

a hyperinflationary economy, the entity shall apply the relevant accounting treatment

in accordance with paragraph 34 of IAS 29.

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.

(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.

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)

(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

The amendments include:

(a) Clarify the application of the ‘own-use’ requirements.

(b) Permit hedge accounting if these contracts are used as hedging instruments.

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 and F. it is not practicable to estimate their impact on

the Group at this point in time. The remaining new or amended standards and interpretations

have no material impact on the Group.

4. Summary of material accounting policies

(1) Statement of compliance

The consolidated financial statements of the Group for the years ended 31 December 2025

and 2024 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 on the historical cost basis,

except for those financial instruments that have been 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)

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

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

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)

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;

(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:

		.12.31	2025.12.31	2024
Investor	Investee Company Name	Main businesses	Ownership	Ownership
			Percentage	Percentage
The Company	Wisdom Marine Lines S.A.(WML)	Shipping Industry	100%	100%
The Company	Wisdom Marine International Inc. (WII)	Shipping Management Industry	100%	100%
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	Adixi Wisdom S.A.	Shipping Industry	100%	100%
WML	Amis Carriers S.A.	Shipping Industry	100%	100%
WML	Amis Elegance S.A.	Shipping Industry	100%	100%
WML	Amis Fortune S.A.	Shipping Industry	100%	100%
WML	Amis Hero S.A.	Shipping Industry	100%	100%
WML	Amis Integrity S.A.	Shipping Industry	100%	100%
WML	Amis International S.A.	Shipping Industry	100%	100%
WML	Amis Justice S.A.	Shipping Industry	100%	100%
WML	Amis Mariner S.A.	Shipping Industry	100%	100%
WML	Amis Miracle S.A.	Shipping Industry	100%	100%
WML	Amis Nature Inc.	Shipping Industry	100%	100%

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

		.12.31	2025.12.31	2024
Investor	Investee Company Name	Main businesses	Ownership	Ownership
			Percentage	Percentage
WML	Amis Navigation S.A.	Shipping Industry	100%	100%
WML	Amis Queen S.A.	Shipping Industry	100%	100%
WML	Amis Star S.A.	Shipping Industry	100%	100%
WML	Amis Victory S.A.	Shipping Industry	100%	100%
WML	Amis Wisdom S.A.	Shipping Industry	100%	100%
WML	Amis Xcel Inc.	Shipping Industry	100%	100%
WML	Arikun Wisdom S.A.	Shipping Industry	100%	100%
WML	Atayal Brave S.A.	Shipping Industry	100%	100%
WML	Atayal Mariner S.A.	Shipping Industry	100%	100%
WML	Atayal Star S.A.	Shipping Industry	100%	100%
WML	Atayal Wisdom S.A.	Shipping Industry	100%	100%
WML	Babuza Wisdom S.A.	Shipping Industry	100%	100%
WML	Beagle Wisdom S.A.	Shipping Industry	100%	100%
WML	Bunun Brave S.A.	Shipping Industry	100%	100%
WML	Bunun Champion S.A.	Shipping Industry	100%	100%
WML	Bunun Dynasty S.A.	Shipping Industry	100%	100%
WML	Bunun Elegance S.A.	Shipping Industry	100%	100%
WML	Bunun Fortune S.A.	Shipping Industry	100%	100%
WML	Bunun Hero S.A.	Shipping Industry	100%	100%
WML	Bunun Infinity S.A.	Shipping Industry	100%	100%
WML	Bunun Justice S.A.	Shipping Industry	100%	100%
WML	Bunun Marine S.A.	Shipping Industry	100%	100%
WML	Bunun Navigation S.A.	Shipping Industry	100%	100%
WML	Bunun Noble Inc.	Shipping Industry	100%	100%
WML	Bunun Treasure S.A.	Shipping Industry	100%	100%
WML	Bunun Unicorn S.A.	Shipping Industry	100%	100%
WML	Bunun Victory S.A.	Shipping Industry	100%	100%
WML	Bunun Wisdom S.A.	Shipping Industry	100%	100%
WML	Bunun Youth Inc.	Shipping Industry	100%	100%
WML	Bunun Zest S.A.	Shipping Industry	100%	100%
WML	Cosmic Wisdom S.A.	Shipping Industry	100%	100%
WML	Daiwan Champion S.A.	Shipping Industry	100%	100%

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

		.12.31	2025.12.31	2024
Investor	Investee Company Name	Main businesses	Ownership	Ownership
			Percentage	Percentage
WML	Daiwan Dolphin S.A.	Shipping Industry	100%	100%
WML	Daiwan Elegance S.A.	Shipping Industry	100%	100%
WML	Daiwan Fortune S.A.	Shipping Industry	100%	100%
WML	Daiwan Glory S.A.	Shipping Industry	100%	100%
WML	Daiwan Hero S.A.	Shipping Industry	100%	100%
WML	Daiwan Infinity S.A.	Shipping Industry	100%	100%
WML	Daiwan Justice S.A.	Shipping Industry	100%	100%
WML	Daiwan Kalon S.A.	Shipping Industry	100%	100%
WML	Daiwan Leader S.A.	Shipping Industry	100%	100%
WML	Daiwan Miracle S.A.	Shipping Industry	100%	100%
WML	Dumun Marine S.A.	Shipping Industry	100%	100%
WML	Dumun Navigation S.A.	Shipping Industry	100%	100%
WML	Elite Steamship S.A.	Shipping Industry	100%	100%
WML	Euroasia Investment S.A.	Shipping Industry	100%	100%
WML	Favoran Wisdom S.A.	Shipping Industry	100%	100%
WML	Fourseas Maritime S.A. Panama	Shipping Industry	100%	100%
WML	Fraternity Marine S.A.	Shipping Industry	100%	100%
WML	Fraternity Ship Investment S.A.	Shipping Industry	100%	100%
WML	Genius Marine S.A.	Shipping Industry	100%	100%
WML	Genius Prince S.A.	Shipping Industry	100%	100%
WML	Genius Star Carriers S.A.	Shipping Industry	100%	100%
WML	Genius Star Navigation S.A.	Shipping Industry	100%	100%
WML	GS Global S.A.	Shipping Industry	100%	100%
WML	GS Navigation S.A.	Shipping Industry	100%	100%
WML	GSX Maritime S.A.	Shipping Industry	100%	100%
WML	Guma Marine S.A.	Shipping Industry	100%	100%
WML	Guma Navigation S.A.	Shipping Industry	100%	100%
WML	Harmony Pescadores S.A. (Panama)	Shipping Industry	100%	100%
WML	Harmony Transport S.A.	Shipping Industry	100%	100%
WML	Hoanya Wisdom S.A.	Shipping Industry	100%	100%
WML	Infinite Wisdom S.A.	Shipping Industry	100%	100%
WML	Katagalan Ace S.A.	Shipping Industry	100%	100%

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

		.12.31	2025.12.31	2024
Investor	Investee Company Name	Main businesses	Ownership	Ownership
			Percentage	Percentage
WML	Katagalan Brave S.A.	Shipping Industry	100%	100%
WML	Katagalan Carriers S.A.	Shipping Industry	100%	100%
WML	Katagalan Champion S.A.	Shipping Industry	100%	100%
WML	Katagalan Line S.A.	Shipping Industry	100%	100%
WML	Katagalan Marine S.A.	Shipping Industry	100%	100%
WML	Katagalan Navigation S.A.	Shipping Industry	100%	100%
WML	Katagalan Star S.A.	Shipping Industry	100%	100%
WML	Katagalan Wisdom S.A.	Shipping Industry	100%	100%
WML	Kavalan Wisdom S.A.	Shipping Industry	100%	100%
WML	Ligulao Wisdom S.A.	Shipping Industry	100%	100%
WML	Lloa Wisdom S.A.	Shipping Industry	100%	100%
WML	Log Wisdom S.A.	Shipping Industry	100%	100%
WML	Luilang Wisdom S.A.	Shipping Industry	100%	100%
WML	Magnate Maritime S.A.	Shipping Industry	100%	100%
WML	Makatao Wisdom S.A.	Shipping Industry	100%	100%
WML	Mercy Marine Line S.A.	Shipping Industry	100%	100%
WML	Mighty Maritime S.A.	Shipping Industry	100%	100%
WML	Mimasaka Investment S.A.	Shipping Industry	100%	100%
WML	Mount Wisdom S.A.	Shipping Industry	100%	100%
WML	Paiwan Ace S.A.	Shipping Industry	100%	100%
WML	Paiwan Wisdom S.A.	Shipping Industry	100%	100%
WML	Papora Wisdom S.A.	Shipping Industry	100%	100%
WML	Pazeh Wisdom S.A.	Shipping Industry	100%	100%
WML	Pescadores International Line S.A.	Shipping Industry	100%	100%
WML	Poavosa International S.A.	Shipping Industry	100%	100%
WML	Poavosa Maritime S.A.	Shipping Industry	100%	100%
WML	Poavosa Navigation S.A.	Shipping Industry	100%	100%
WML	Poavosa Wisdom S.A.	Shipping Industry	100%	100%
WML	Rukai Maritime S.A.	Shipping Industry	100%	100%
WML	Sakizaya Diamond S.A.	Shipping Industry	100%	100%
WML	Sakizaya Fortune S.A.	Shipping Industry	100%	100%
WML	Sakizaya Glory S.A.	Shipping Industry	100%	100%

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

		.12.31	2025.12.31	2024
Investor	Investee Company Name	Main businesses	Ownership	Ownership
			Percentage	Percentage
WML	Sakizaya Hero S.A.	Shipping Industry	100%	100%
WML	Sakizaya Integrity S.A.	Shipping Industry	100%	100%
WML	Sakizaya Justice S.A.	Shipping Industry	100%	100%
WML	Sakizaya Kalon S.A.	Shipping Industry	100%	100%
WML	Sakizaya Leader S.A.	Shipping Industry	100%	100%
WML	Sakizaya Line S.A.	Shipping Industry	100%	100%
WML	Sakizaya Marine S.A.	Shipping Industry	100%	100%
WML	Sakizaya Miracle S.A.	Shipping Industry	100%	100%
WML	Sakizaya Navigation S.A.	Shipping Industry	100%	100%
WML	Sakizaya Orchid S.A.	Shipping Industry	100%	100%
WML	Sakizaya Power S.A.	Shipping Industry	100%	100%
WML	Sakizaya Queen S.A.	Shipping Industry	100%	100%
WML	Sakizaya Respect S.A.	Shipping Industry	100%	100%
WML	Sakizaya Unicorn S.A.	Shipping Industry	100%	100%
WML	Sakizaya Victory S.A.	Shipping Industry	100%	100%
WML	Sakizaya Wisdom S.A.	Shipping Industry	100%	100%
WML	Sakizaya Youth S.A.	Shipping Industry	100%	100%
WML	Sao Wisdom S.A.	Shipping Industry	100%	100%
WML	Saysiat Wisdom S.A.	Shipping Industry	100%	100%
WML	Siraya Wisdom S.A.	Shipping Industry	100%	100%
WML	Taivoan Wisdom S.A.	Shipping Industry	100%	100%
WML	Tao Ace S.A.	Shipping Industry	100%	100%
WML	Tao Brave S.A.	Shipping Industry	100%	100%
WML	Tao Mariner S.A.	Shipping Industry	100%	100%
WML	Tao Star S.A.	Shipping Industry	100%	100%
WML	Tao Treasure S.A.	Shipping Industry	100%	100%
WML	Taokas Marine S.A.	Shipping Industry	100%	100%
WML	Taokas Navigation S.A.	Shipping Industry	100%	100%
WML	Taokas Wisdom S.A.	Shipping Industry	100%	100%
WML	Taroko Maritime S.A.	Shipping Industry	100%	100%
WML	Taroko Wisdom S.A.	Shipping Industry	100%	100%
WML	Triumph Wisdom S.A.	Shipping Industry	100%	100%

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

		.12.31	2025.12.31	2024
Investor	Investee Company Name	Main businesses	Ownership	Ownership
			Percentage	Percentage
WML	Trobian Wisdom S.A.	Shipping Industry	100%	100%
WML	Unicorn Bravo S.A.	Shipping Industry	100%	100%
WML	Unicorn Logger S.A.	Shipping Industry	100%	100%
WML	Unicorn Logistics S.A.	Shipping Industry	100%	100%
WML	Unicorn Marine S.A.	Shipping Industry	100%	100%
WML	Unicorn Pescadores S.A.	Shipping Industry	100%	100%
WML	Unicorn Successor S.A.	Shipping Industry	100%	100%
WML	Vayi Wisdom S.A.	Shipping Industry	100%	100%
WML	Winsome Wisdom S.A.	Shipping Industry	100%	100%
WML	Wisdom Capital (BVI) Inc.	Investment Industry	100%	100%
WML	Wisdom Chartering S.A.	Shipping Industry	100%	100%

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:

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 joint arrangement 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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

All other liabilities are classified as non-current.

(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.

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, transaction costs that are directly attributable to the acquisition or issue

of the financial assets or financial liabilities.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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:

(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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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

at the reporting date about past events, current conditions and forecasts of future

economic conditions.

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.

IFRS 15, the Group measures the loss allowance at an amount equal to lifetime

expected credit losses.

(d) For lease receivables arising from transactions within the scope of IFRS 16, the Group

measures the loss allowance at an amount equal to lifetime expected credit losses.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 remeasured 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.

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

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 remeasured 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. The changes in fair value of derivatives are taken directly to profit or loss, except

for the effective portion of hedges, which is recognized in either profit or loss or equity

according to types of hedges used.

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.

(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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

Expenditures on the building of new vessels are capitalized as vessels under construction as

they are paid. Capitalized value is reclassified from vessel under construction to vessels upon

delivery from the dock. The total acquisition cost of a vessel is determined based on the sum

of installments paid plus the costs incurred during the construction period. Borrowing costs

that are attributable to the construction of the vessels are capitalized as part of the vessel. The

interest rate is based on the weighted-average borrowing costs for the Group, limited to the

total borrowing costs incurred in the period.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the

following assets:

Buildings							28 years
Vessels				25 years	1	9	-
Vessel equipment					5 years	3	-
Dry dock						2.5 years
Other					5 years	3	-
Right	-	of	-	use assets	3	-	25 years

An item of property, plant and equipment and any significant part initially recognized is

derecognized upon disposal or when no future economic benefits are expected from its use or

disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment

are reviewed at each financial year end and adjusted prospectively, if appropriate.

(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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 difference between the net disposal proceeds and the carrying

amount of the asset is recognized in profit or loss in the period of derecognition

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:

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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 reduces 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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 separately presents

lease-related interest expense and depreciation charge in the statement of comprehensive

income.

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

The liability to pay a levy is recognized 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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

(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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 at reporting

date.

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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), information about deferred tax assets and liabilities related

to Pillar Two income tax will neither be recognized nor be disclosed.

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:

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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.

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 2025	31 December 2024
Cash on hand	$235	$2,502
Demand deposits	28,990,196	23,667,863
Time deposits	122,510,689	111,480,000
Total	$151,501,120	$135,150,365

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

As at 31 December 2025 and 2024, cash and cash equivalents with carrying amounts of

$26,528,206 and $36,491,161 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 2025	31 December 2024
Mandatorily measured at fair value through profit
or loss:
Structured notes
-Current	$984,000	$822,100

				For the Year Ended
				31 December
				Realized		Unrealized	Equity
	Amount in		Contract	gains		gains	linked note
Type of contract	contract	Counter party	period	(losses)		(losses)	(Y/N)
2025.12.31
10 year USD		Taichung Commercial	2022.08.05~
range accrual note	$1,000,000	Bank Co., Ltd.	2032.08.05	$35,225	>	$161,900	No

				For the Year Ended
				31 December
				Realized		Unrealized	Equity
	Amount in		Contract	gains		gains	linked note
Type of contract	contract	Counter party	period	(losses)		(losses)	(Y/N)
2024.12.31
10 year USD		Taichung Commercial	2022.08.05~
range accrual note	$1,000,000	Bank Co., Ltd.	2032.08.05	$53,857	>	$(80,600)	No

A. The aforementioned financial assets at fair value through profit or loss will be re-evaluated

for their potential sale, due to changes in interest rate spreads in the future. There is no

reasonable assurance that these assets will be held for more than one year; therefore, they

have been reclassified to the current portion.

B. The aforementioned financial assets were not pledged as collateral.

C. For the credit risk information of financial assets at fair value through profit or loss, please

refer to Note 12.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(3) Financial assets at fair value through other comprehensive income

	31 December 2025	31 December 2024
Investments in debt instruments measured at fair
value through other comprehensive income
Bonds
-Current	$9,289,311	$9,717,541

A. For the amount of aforementioned financial assets pledged for bank loans as at 31

December 2025 and 2024, 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 2025	31 December 2024
Accounts receivable	$6,306,650	$4,942,245
Less: loss allowance	(113,054)	(109,972)
Subtotal	6,193,596	4,832,273
Accounts receivable due from related parties	282,003	283,147
Less: loss allowance	-	-
Subtotal	282,003	283,147
Accounts receivable, net	$6,475,599	$5,115,420

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 2025 and 2024 are $6,588,653 and $5,225,392,

respectively. Please refer to Note 6.(16) for more details on loss allowance of trade receivables

for the years ended 31 December 2025 and 2024. Please refer to Note 12 for more details on

credit risk management.

(5) Inventories

	31 December 2025	31 December 2024
Fuel	$4,666,655	$2,934,774

A. The cost of inventories recognized in expenses amounts to $5,611,000 and $3,260,890 for

the years ended 31 December 2025 and 2024, including the write-down of inventories of

$295,369 and $207,341.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

B. As at 31 December 2025 and 2024, the aforementioned inventories were not pledged as

collateral.

(6) Investments accounted for using the equity method

	31 December 2025		31 December 2024
	Carrying	Percentage of	Carrying	Percentage of
Investees	amount	ownership (%)	amount	ownership (%)
Investments in associates:
Pescadores Investment and
Development Inc.	$12,151,838	40%	$11,580,467	40%
Accumulated impairment	(1,750,462)		(1,677,581)
Subtotal	10,401,376		9,902,886
Investments in joint venture:
Wisdom Synergy
Shipmanagement Pte. Ltd	50%	-	50%	-
Total	$10,401,376		$9,902,886

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$2.18 billion. The Group holds 40% of the shares issued by Pescadores

Investment and Development Inc. As at 31 December 2025, the Group had contributed

capital amounting to NT$872 million and cumulative recognized investment losses

amounting to NT$490 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. on 12 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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

Development Inc. on 7 April 2025, of which capital has amounted to NT$2.18 billion,

with a par value of NT$10 per share for 4,000,000 shares. The Group remain 40%

interest in the shares issued by Pescadores Investment and Development Inc. As at 18

July 2025, the Group had fully paid the amount. As at 1 September 2025, 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. On 19 November 2025, the

Construction Management Office granted approval for the construction layout and

staking inspection under the building permit, and the Department of Urban

Development issued a consent-for-record-filing document for the same inspection.

(e) Reconciliation of the associate’s summarized financial information presented to the

carrying amount of the Group’s interest in the associate:

	31 December 2025	31 December 2024
Current assets	$376,447	$2,507,078
Non-current assets	150,076,200	141,566,717
Current liabilities	(92,149)	(84,805)
Non-current liabilities	(119,980,904)	(115,037,822)
Equity	30,379,594	28,951,168
Percentage of ownership (%)	40%	40%
Group’s carrying amount of the investment	$12,151,838	$11,580,467

	For the Years Ended 31 December
	2025	2024
Operating revenue	$-	$-
Loss from continuing operations	(3,035,578)	(8,243,860)
Other comprehensive income	-	-
Total comprehensive loss	$(3,035,578)	$(8,243,860)

The investments in associates do not have a quoted market price in active market.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 Years Ended 31 December
	2025	2024
Loss from continuing operations	$(386,587)	$(182,710)
Other comprehensive income (loss)	-	-
Total comprehensive loss	$(386,587)	$(182,710)

C. The aforementioned investments in associates had no contingent liabilities, capital

commitments, or guarantees as at 31 December 2025 and 2024.

D. The aforementioned investments in joint venture had no contingent liabilities, capital

commitments, or guarantees as at 31 December 2025 and 2024. The joint venture cannot

distribute its profits until it obtains the consent from all venture partners.

(7) Property, plant and equipment

3	1 December	202	5	3	1 December	202	4
Owner occupied property, plant and equipment	$12,307,940				$11,874,399
Property, plant and equipment leased out under
operating leases	2,097,577,257				2,283,174,65		0
Total	$2,109,885,197				$2,295,049,0	49

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

A. Owner occupied property, plant and equipment

				Foreign exchange		Ending
31 December 2025	Beginning balance	Additions	Disposals	Re-classification	differences	balance
Cost
Land	$10,651,823	$-	$-	$-	$462,754	$11,114,577
Buildings	1,486,288	9,682	-	-	64,495	1,560,465
Transportation equipment	86,320	-	-	-	3,750	90,070
Office equipment	371,437	-	-	-	16,137	387,574
Total	12,595,868	9,682	-	-	547,136	13,152,686
Accumulated depreciation
Buildings	333,438	70,412	-	-	13,938	417,788
Transportation equipment	84,914	1,479	-	-	3,677	90,070
Office equipment	303,117	20,763	-	-	13,008	336,888
Total	721,469	92,654	-	-	30,623	844,746
Net balance	$11,874,399	$(82,972)	$-	$-	$516,513	$12,307,940

				Foreign exchange		Ending
31 December 2024	Beginning balance	Additions	Disposals	Re-classification	differences	balance
Cost
Land	$11,373,392	$-	$-	$-	$(721,569)	$10,651,823
Buildings	1,577,517	9,040	-	-	(100,269)	1,486,288
Transportation equipment	92,168	-	-	-	(5,848)	86,320
Office equipment	376,146	19,558	-	-	(24,267)	371,437
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	301,805	20,891	-	-	(19,579)	303,117
Total	674,823	91,342	-	-	(44,696)	721,469
Net balance	$12,744,400	$(62,744)	$-	$-	$(807,257)	$11,874,399

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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

				Ending	Foreign exchang	e
31 December 2025	Beginning balance	Additions	Disposals	Re-classification	differences	balance
Cost
Vessels	$3,423,308,045	$223,601	$348,269,228	$83,045,452	$106,220	$3,158,414,090
Vessel equipment	9,595,720	999,138	2,681,753	155,649	533	8,069,287
Dry-dock	45,661,565	26,868,317	23,566,467	1,249,218	25,848	50,238,481
Total	3,478,565,330	28,091,056	374,517,448	84,450,319	132,601	3,216,721,858
Accumulated depreciation
and impairment
Vessels	1,169,760,491	116,814,791	209,907,492	15,766,865	88,377	1,092,523,032
Vessel equipment	5,252,803	1,859,622	2,652,922	27,861	533	4,487,897
Dry-dock	20,377,386	21,809,466	20,772,791	693,763	25,848	22,133,672
Total	1,195,390,680	140,483,879	233,333,205	16,488,489	114,758	1,119,144,601
Net balance	$2,283,174,650	$(112,392,823)	$141,184,243	$67,961,830	$17,843	$2,097,577,257

				Ending	Foreign exchang	e
31 December 2024	Beginning balance	Additions	Disposals	Re-classification	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	$2,355,061,463	$(118,271,464)	$84,167,037	$130,582,211	$(30,523)	$2,283,174,650

C. As at 31 December 2025 and 2024, the residual value of the vessels amounted to $425,344

thousand and $446,081 thousand, respectively, and the estimated useful lives were ranging

from 19 to 25 years and 16 to 25 years, respectively.

D. As at 31 December 2025 and 2024, 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 2025 and

2024. Please refer to Note 8 for further details.

F. As at 31 December 2025, the Group has entered into certain ship building contracts. Please

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

refer to Note 9.(1) for further details.

G. For the years ended 31 December 2025 and 2024, the amounts of total interest expense

before capitalization of borrowing costs were $42,569,132 and $61,549,153; the capitalized

interest were $2,893 and $23,255, respectively, with capitalization of rate of borrowing

costs at 1.05% and 1.46%~3.50%, respectively.

H. For the years ended 31 December 2025 and 2024, the Group disposed of certain vessels for

total contract price $134,955,000 and $90,300,000, which resulted in gains on disposals of

property, plant and equipment of $44,036,353 and $31,267,595, 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 2025	Beginning balance	Additions	Disposals	Re-classification	differences	balance
Cost
Land	$2,000,301	$-	$-	$-	$86,900	$2,087,201
Buildings	240,490	-	-	-	10,448	250,938
Total	2,240,791	-	-	-	97,348	2,338,139
Accumulated
depreciation
Buildings	46,301	8,721	-	-	1,944	56,966
Total	46,301	8,721	-	-	1,944	56,966
Net balance	$2,194,490	$(8,721)	$-	$-	$95,404	$2,281,173

				Foreign exchange		Ending
31 December 2024	Beginning balance	Additions	Disposals	Re-classification	differences	balance
Cost
Land	$2,135,804	$-	$-	$-	$(135,503)	$2,000,301
Buildings	256,781	-	-	-	(16,291)	240,490
Total	2,392,585	-	-	-	(151,794)	2,240,791
Accumulated
depreciation
Buildings	40,583	8,467	-	-	(2,749)	46,301
Total	40,583	8,467	-	-	(2,749)	46,301
Net balance	$2,352,002	$(8,467)	$-	$-	$(149,045)	$2,194,490

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

	For the Years Ended 31 December
	2025	2024
Rental income from investment property	$100,911	$98,240
Less:
Direct operating expenses from investment
property generating rental income	(37,943)	(37,033)
Direct operating expenses from investment
property not generating rental income	-	-
Total	$62,968	$61,207

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 2025 and 2024,

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 $2,653,750 and

$2,531,838 as at 31 December 2025 and 2024, 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 2025	31 December 2024
Prepayment for vessels	$71,038,500	$49,528,000
Deferred expenses	18,687	34,982
Carbon credits intangible asset	4,547,874	430,032
Total	$75,605,061	$49,993,014

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)

(10) Borrowings

		3	1 December				202		5	3	1 December		4	202
Bank loans
－	Short-term borrowings	$	66	,	893	,	8	5	3	$	21	,	470	, 519
－	Long-term borrowings (including current portion)	$	676	,	547	,	588			$	799	,	891	, 874

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

Loans	Currency	Nominal interest rates	Maturity date	Amount
31 December 2025
Unsecured	USD	4.55%~5.09%	2023.06.05~2026.06.05	$1,166,667
	JPY	0.93%~1.66%	2025.09.01~2027.08.31	5,875,966
	CHF	0.51%~2.60%	2025.06.23~2026.06.23	66,893,853
Secured	USD	4.47%~6.74%	2015.11.26~2033.06.05	362,797,586
	JPY	0.85%~2.62%	2013.05.31~2031.10.17	144,350,404
	CHF	0.50%~2.80%	2024.02.22~2034.02.22	155,048,245
	TWD	2.22%	2024.05.30~2029.05.30	7,308,720
Total				$743,441,441

Loans	Currency	Nominal interest rates	Maturity date	Amount
31 December 2024
Unsecured	USD	5.32%~7.00%	2023.06.05~2026.06.05	$4,188,750
	JPY	0.90%~1.40%	2023.09.01~2026.08.31	10,434,003
	CHF	2.87%	2024.07.10~2025.07.10	18,205,892
	TWD	2.22%	2024.05.31~2029.05.31	1,067,562
Secured	USD	5.09%~7.71%	2012.01.18~2033.06.05	488,489,908
	JPY	0.60%~2.42%	2010.08.03~2031.10.17	216,649,550
	CHF	2.02%~3.50%	2024.02.22~2034.02.22	74,529,260
	TWD	2.22%	2024.05.30~2029.05.30	7,797,468
Total				$821,362,393

B. Future settlements of long-term borrowings were as follows:

Maturity period	31 December 2025	31 December 2024
Within one year	$112,157,834	$173,686,399
Beyond one year and up to five years	402,108,894	393,756,256
More than five years	162,280,860	232,449,219
Total	$676,547,588	$799,891,874

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(a) As at 31 December 2025 and 2024, WML had provided financing guarantees for its

subsidiaries of $556,657 thousand and $708,188 thousand, respectively.

(b) As at 31 December 2025 and 2024, the Group had unused credit facilities of $135,887

thousand and $134,746 thousand, respectively.

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 2025 and 2024, 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 2025	31 December 2024
Secured bonds	$31,582,705	$30,197,916
Less: current portion	-	-
Net	$31,582,705	$30,197,916

The Group’s overseas secured bonds were as follows:

	31 December 2025	31 December 2024
First R.O.C. secured bonds issued in 2019
Bonds issued	$-	$44,814,755
Accumulated converted amount	-	-
Valuation on bonds payable	-	(2,052,843)
Repayment of principal at maturity	-	(42,761,912)
Net	-	-
Less: current portion of bonds payable	-	-
Subtotal	-	-
First R.O.C. secured bonds issued in 2024
Bonds issued	30,888,031	30,888,031
Accumulated converted amount	(236,955)	(307,686)
Valuation on bonds payable	931,629	(382,429)
Net	31,582,705	30,197,916
Less: current portion of bonds payable	-	-
Subtotal	31,582,705	30,197,916
Total	$31,582,705	$30,197,916
Interest expense	$629,598	$586,853

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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
4	202	5	202
Lease income for operating leases
Income relating to fixed lease payments and
variable lease payments that depend on an
index or a rate	$	534,495,111	$627,191,948

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 2025 and 2024 are as

follows:

3	1 December	202	5	3	1 December	202	4
Not later than one year	$313,022,470				$228,241,046
Later than one year but not later than two years	40,224,969				29,129,926
Later than two years but not later than three years		5,626,880				1,391,623
Total	$358,874,319				$258,762,595

B. Group as a lessee

The Group leases various assets, including vessels and buildings. The lease terms range

from 3 to 15 years.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 2025	31 December 2024
Vessels	$132,223,479	$176,985,551
Buildings	443,801	762,355
Total	$132,667,280	$177,747,906

During the years ended 31 December 2025 and 2024, the additions to right-of-use

assets of the Group amounting to $1,086,819 and $2,122,616, respectively.

ii. Lease liabilities

	31 December 2025	31 December 2024
Lease liabilities
Current	$17,116,603	$28,488,199
Non-current	76,812,482	93,931,608
Total	$93,929,085	$122,419,807

(i) Please refer to Note 6.(18).D for the interest on lease liabilities recognized

during the years ended 31 December 2025 and 2024 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.

(b) Amounts recognized in the statement of comprehensive income

Depreciation charge for right-of-use assets

	For the Years Ended 31 December
	2025	2024
Vessels	$9,334,250	$10,317,155
Buildings	363,436	349,004
Total	$9,697,686	$10,666,159

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

	For the Years Ended 31 December
	2025	2024
The expense relating to short-term leases	$33,998	$13,659
The expense relating to leases of low-	value
assets (Not including the expenses
relating to short-term leases of low-
value assets)	6,736	6,540
The expense relating to variable lease
payments not included in the
measurement of lease liabilities	621	502
Income from subleasing right-of-use assets	35,599,388	45,424,572
Losses arising from sale and leaseback
transactions	2,265,285	2,152,903

(d) Cash outflow relating to leasing activities

For the years ended 31 December 2025 and 2024, the Group’s total cash outflows for

leases amounting to $33,529,433 and $17,001,066, respectively.

(e) Sale and leaseback transaction

i. As at 31 December 2025 and 2024, 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 2025	Vessel	Lease term	Rent	Contract price	Interest rates
	(i)	7 years from 2021.11	¥45,900,000/quarter	¥1,485,000,000	TIBOR+1.35%
	(ii)	7 years from 2023.01	¥64,162,300/quarter	¥1,941,800,000	TIBOR+1.00%
	(iii)	7.5 years from 2024.03	$680,570/quarter	$16,500,000	SOFR+1.50%
	(iv)	6.9 years from 2024.03	$711,400/quarter	$15,840,000	SOFR+1.40%

31 December 2024 Vessel Lease term Rent Contract price Interest rates

(i)	7 years from 2018.09	¥28,928,000/quarter	¥810,000,000	1.50%
(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)	7.5 years from 2024.03	$680,570/quarter	$16,500,000	SOFR+1.48%
(v)	6.9 years from 2024.03	$711,400/quarter	$15,840,000	SOFR+1.38%

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

ii. Future non-cancellable chartering payments as at 31 December 2025 and 2024

were as follows:

	31 December 2025	31 December 2024
Within one year	$6,488,407	$6,796,430
Beyond one year and up to five years	32,950,028	27,749,767
More than five years	15,981,348	27,709,284
Total	$55,419,783	$62,255,481

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.

(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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

As at 31 December 2025 and 2024, 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 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.

earnings, by distributing the cash dividends from retained earnings at NT$5 per share.

The record date of cash dividends was 21 June 2025, and the distribution date was 11

July 2025.

B. Capital surplus

The components of the capital surplus were as follows:

	31 December 2025	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.

(b) On 23 May 2025 and 31 May 2024, the Company’s shareholders resolved at the

shareholder’s meeting to appropriate the 2024 and 2023 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	2024	2023
Cash dividends from retained earnings-per share	$5.00	$2.75

For the amount and estimate basis of Directors’ and supervisors’ remuneration please

refer to Note 6.(17).E.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(15) Operating revenue

	For the Years Ended 31 December
	2025	2024
Revenue from contracts with customers
Vessel management revenue	$754,041	$706,437
Subtotal	754,041	706,437
Hire revenue (Note)
Hire revenue-long term	469,446,201	560,405,345
Hire revenue-short term	64,874,070	66,621,960
Subtotal	534,320,271	627,027,305
Other operating revenue	6,882,948	6,697,428
Total	$541,957,260	$634,431,170

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 2025

and 2024 are as follows:

A. Disaggregation of revenue

	For the Years Ended 31 December
	2025	2024
Rendering of services	$754,041	$706,437
Timing of revenue recognition:
Over time	$754,041	$706,437

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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(16) Expected credit losses

	For the Years Ended 31 December
	2025	2024
Operating expenses – expected credit losses
Accounts receivable	$960,104	$280,486

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 2025 and 2024 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 2025				Past due
	Not yet due	Under 6 months	7~12 months	13~18 months	19~24 months	Over 24 months	Total
Gross carrying amount	$4,897,316	$874,840	$335,351	$241,497	$239,649	$-	$6,588,653
Loss ratio	0.60%	3.84%	4.32%	6.04%	8.70%	100%
Lifetime expected credit
losses	29,538	33,594	14,487	14,586	20,849	-	113,054
Net carrying amount	$4,867,778	$841,246	$320,864	$226,911	$218,800	$-	$6,475,599

31 December 2024				Past due
	Not yet due	Under 6 months	7~12 months	13~18 months	19~24 months	Over 24 months	Total
Gross carrying amount	$3,756,871	$369,404	$239,968	$417,324	$441,825	$-	$5,225,392
Loss ratio	0.57%	3.70%	4.53%	6.10%	8.70%	100%
Lifetime expected credit
losses	21,537	13,668	10,871	25,457	38,439	-	109,972
Net carrying amount	$3,735,334	$355,736	$229,097	$391,867	$403,386	$-	$5,115,420

The movement in the provision for impairment of accounts receivable during the years ended

31 December 2025 and 2024 is as follows:

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

	For the Years Ended 31 December
	2025	2024
Beginning balance	$109,972	$215,996
Addition for the current period	960,104	280,486
Write off for past due over 25 months	(957,022)	(386,510)
Ending balance	$113,054	$109,972

(17) Operating costs

	For the Years Ended 31 December
	2025	2024
Depreciation	$150,035,856	$152,050,003
Cost of materials	60,038,810	58,311,885
Expenses for chartering services	44,436,421	50,275,843
Wages and personnel expenses	140,367,396	145,065,097
Other operating costs	11,545,776	11,977,503
Total	$406,424,259	$417,680,331

A. Cost of materials

	For the Years Ended 31 December
	2025	2024
Fuel	$5,611,000	$3,260,890
Lubricants	11,064,479	11,481,675
Materials	11,698,433	11,937,087
Spare parts	17,481,900	17,069,437
Inspection fees	8,436,721	8,058,489
Repairs and maintenance	3,986,953	4,879,981
Paints	1,759,324	1,624,326
Total	$60,038,810	$58,311,885

B. Expenses for chartering services

	For the Years Ended 31 December
	2025	2024
Commissions	$27,404,114	$32,484,812
Management fee	8,351,307	8,249,050
Port charges	851,357	843,797
Agency costs	321,773	415,923
Dispatch expenses	-	8,900
Postage expenses	2,058,437	3,029,720
Others	5,386,514	5,225,782
Carbon fee	62,919	17,859
Total	$44,436,421	$50,275,843

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

C. Wages and personnel expenses

	For the Years Ended 31 December
	2025	2024
Crew wages	$115,144,972	$118,468,897
Insurance expenses	11,429,580	11,809,752
Food and meals	7,960,846	8,405,585
Crew travel fees	3,046,570	3,561,223
Bonus	2,599,073	2,649,070
Pension	186,355	170,570
Total	$140,367,396	$145,065,097

D. Other operating costs

	For the Years Ended 31 December
	2025	2024
Hull and machinery insurance	$9,456,314	$9,327,986
Compensation for damage	1,126,502	1,710,728
Lease payments	3,368	2,803
Others	959,592	935,986
Total	$11,545,776	$11,977,503

E. Summary statement of employee benefits, depreciation and amortization expenses by

function for the years ended 31 December 2025 and 2024:

			For the Years Ended 31 December
		2025			2024
	Operating	Operating	Total	Operating	Operating	Total
	costs	expenses	amount	costs	expenses	amount
Employee benefits expense
Salaries	$117,744,045	$2,347,208	$120,091,253	$121,117,967	$2,620,000	$123,737,967
Insurance expenses	11,429,580	154,597	11,584,177	11,809,752	153,281	11,963,033
Pension	186,355	72,840	259,195	170,570	68,141	238,711
Other employee benefits
expense	7,961,240	81,346	8,042,586	8,406,753	71,323	8,478,076
Depreciation	150,035,856	247,084	150,282,940	152,050,003	238,776	152,288,779
Amortization	19,318	-	17,954	17,954	-	19,318

The differences between the actual appropriations of 2024 and 2023 earnings for directors

and supervisors’ remunerations as approved at the shareholders’ meeting and the amounts

recognized in the financial statements were as follows:

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

		2024
	The actual
	appropriation	The amount
	according to the	recognized in the
	shareholders meeting	financial report	Difference
Directors’ and supervisors’ remuneration	$586,390	$586,390	$-

		2023
	The actual
	appropriation	The amount
	according to the	recognized in the
	shareholders meeting	financial report	Difference
Directors’ and supervisors’ remuneration	$382,177	$382,288	$(111)

The aforementioned difference for the years ended 31 December 2024 and 2023 was

accounted for as a change in accounting estimates and was charged to profit or loss for the

years ended 31 December 2025 and 2024.

The Group estimated the amounts of the remuneration to directors and supervisors’ to be

$397,177 and $586,390 for the years ended 31 December 2025 and 2024, respectively.

These amounts were calculated based on the Company’s net profit for the years ended 31

December 2025 and 2024, 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 2025 and 2024.

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
	2025	2024
Interest income
Bank deposits	$4,348,601	$6,672,045
Financial assets at fair value through other
comprehensive income	543,189	567,480
Total	$4,891,790	$7,239,525

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

B. Other income

	For the Years Ended 31 December
	2025	2024
Other income, others	$840,785	$320,167

C. Other gains and losses

	For the Years Ended 31 December
	2025	2024
Gains on disposals of property, plant and
equipment	$44,036,353	$31,267,595
Losses on disposals of investments	-	(11,418)
Foreign exchange (losses) gains	(8,089,805)	6,216,483
Gains (losses) on financial assets at fair value
through profit or loss (Note)	197,125	(26,743)
Other impairment loss	-	(1,712,900)
Subtotal	36,143,673	35,733,017
Miscellaneous expenses	(793,327)	(1,208,412)
Total	$35,350,346	$34,524,605

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
	2025	2024
Interest on borrowings from bank	$30,698,883	$47,084,255
Interest on bonds payable	629,598	586,853
Interest on lease liabilities	3,304,484	4,024,244
Interest on long-term accounts payable
(including from related parties)	7,933,274	9,830,546
Total interest expense	$42,566,239	$61,525,898

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(19) Components of other comprehensive income (loss)

For the year ended 31 December 2025

		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	$(2,012)	$-	$(2,012)	$402	$(1,610)
Components of other comprehensive income that
will be reclassified to profit or loss:
Exchange differences on translation of foreign
financial statements	(66,248,020)	-	(66,248,020)	-	(66,248,020)
Unrealized gains (losses) from investments in
debt instruments measured at fair value
through other comprehensive income	192,296	-	192,296	-	192,296
Total of other comprehensive income (loss)	$(66,057,736)	$-	$(66,057,736)	$402	$(66,057,334)

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	$25,491	$-	$25,491	$(5,098)	$20,393
Components of other comprehensive income that
will be reclassified to profit or loss:
Exchange differences on translation of foreign
financial statements	8,102,320	-	8,102,320	-	8,102,320
Unrealized gains (losses) from investments in
debt instruments measured at fair value
through other comprehensive income	157,616	-	157,616	-	157,616
Total of other comprehensive income (loss)	$8,285,427	$-	$8,285,427	$(5,098)	$8,280,329

(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.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

B. For the years ended 31 December 2025 and 2024, 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
	2025	2024
Current income tax expense:
Current income tax charge	$641,618	$662,654
Adjustments in respect of current income tax
of prior periods	(17,778)	-
Deferred tax expense (income):
Deferred tax expense (income) relating to
origination and reversal of temporary
differences	(23,776)	26,718
Total income tax expense	$600,064	$689,372

Income tax relating to components of other comprehensive income

	For the Years Ended 31 December
	2025	2024
Deferred tax expense (income):
Remeasurements of the defined benefit plans	$(402)	$5,098
Income tax relating to components of other
comprehensive income	$(402)	$5,098

Reconciliation between tax expense and the product of accounting profit multiplied by

applicable tax rates is as follows:

	For the Years Ended 31 December
	2025	2024
Tax at the domestic rates applicable to profits in
the country concerned	$259,821	$(424,265)
Tax effect of revenues exempt from taxation
and expenses not deductible for tax purposes	300,296	1,055,828
Tax effect of deferred tax assets/liabilities	57,696	57,809
Adjustments in respect of current income tax of
prior periods	(17,778)	-
Corporate income surtax on undistributed
retained earnings	29	-
Total income tax expense recognized in profit or loss	$600,064	$689,372

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 2025	31 December 2024
Deductible temporary difference
Tax loss	$3,391,167	$2,882,881
Impairment loss	341,632	420,180
Total	$3,732,799	$3,303,061

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

2025:

Year	Unused Amount	Expiration Year
2017 assessed amount	$50,316	2027
2019 assessed amount	466,190	2029
2020 assessed amount	499,066	2030
2021 assessed amount	488,709	2031
2022 assessed amount	578,923	2032
2023 assessed amount	532,470	2033
2024 filed amount	392,450	2034
2025 filed amount	383,043	2035
	$3,391,167

(b) Recognized deferred tax assets (liabilities)

For the years ended 31 December 2025 and 2024, changes in deferred tax assets and

liabilities are as follows:

	Defined
	benefit plans	Other	Total
Deferred tax assets (liabilities):
Balance, 1 January 2025	$(7,344)	$(6,418)	$(13,762)
(Debit) credit in income statement	(1,282)	25,058	23,776
Relating to components of other
comprehensive income	402	-	402
Exchange rate effects	(312)	(473)	(785)
Balance, 31 December 2025	$(8,536)	$18,167	$9,631

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

	Defined
	benefit plans	Other	Total
Balance, 1 January 2024	$(1,392)	$19,969	$18,577
(Debit) credit in income statement	(1,069)	(25,649)	(26,718)
Relating to components of other
comprehensive income	(5,098)	-	(5,098)
Exchange rate effects	215	(738)	(523)
Balance, 31 December 2024	$(7,344)	$(6,418)	$(13,762)

Reflected in balance sheet as follows:

	31 December 2025	31 December 2024
Deferred tax assets	$33,398	$10,997
Deferred tax liabilities	$23,767	$24,759

C. The assessment of income tax returns

As at 31 December 2025, 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 2023
Well Ship management and Maritime
Consultant Co., Ltd. (WELL)	Assessed and approved up to 2023
Huian Ship Management Co., Ltd.	Assessed and approved up to 2023

(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
	2025	2024
Basic/diluted earnings per share
Profit attributable to ordinary shareholders	$126,251,996	$187,841,879
Weighted average number of ordinary shares	746,409,199	746,409,199
Basic/diluted earnings per share	$0.17	$0.25

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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

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 2025 and 2024, the Group entered into time chartering

with other related parties as follows:

	For the Years Ended 31 December
Related party	2025	2024
Other related parties	$1,728,215	$1,704,457

The price of time chartering with other related parties was determined based on the market

rate and operating costs of the Group.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

B. Services received / rendered

For the years ended 31 December 2025 and 2024, the Group received services from (or

rendered services to) related parties as follows:

Related party	Item	Amount
For the Year Ended
31 December	202	5
Other related parties	Vessel management service income	$(	753	079	,	)
″	Other income (ticket revenue and other income-other)	)	(	66	,	056
″	Commissions	5	, 6	71	,	619
″	Other expenses (business travel expenses, agency fees,
	inspection fees, management consulting fees and etc.)	774	5	0	3	,
″	Operating expenses (business travel expenses,
	entertainment expenses and etc.)		157	577	,
″	Ballast water management systems costs and dry-
	docking cost		200	745	,
″	Losses on disposals of property, plant and equipment
	(commissions)	00	2	21	,	8
Associates	Management revenue			)	(9	62
Joint Venture	Management expense		600	000	,

Related party	Item	Amount
For the Year Ended
31 December 2024
Other related parties	Vessel management service income	$(705,502)
″	Other income (ticket revenue and other income-other)	(109,950)
″	Commissions	6,632,039
″	Other expenses (business travel expenses, agency fees,
	inspection fees, management consulting fees and etc.)	502,849
″	Operating expenses (business travel expenses,
	entertainment expenses and etc.)	85,006
″	Other income, others	(560)
″	Ballast water management systems costs and dry-
	docking cost	173,388
″	Losses on disposals of property, plant and equipment
	(commissions)	200,000
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)

C. Receivables and payables

As at 31 December 2025 and 2024, the Group incurred receivables and payables with

related parties due to vessels operation as follows:

Accounts receivable	31 December 2025	31 December 2024
Name of related party
Asiaeuro Investment S.A.	$277,355	$283,147
Other related parties	4,648	-
	$282,003	$283,147
Other receivables	31 December 2025	31 December 2024
Name of related party
Other related parties	$272	$2,299
Other current assets, other	31 December 2025	31 December 2024
Name of related party
Other related parties	$910,330	$1,136,761
Joint Venture	94,450	94,450
Total	$1,004,780	$1,231,211
Accounts payable	31 December 2025	31 December 2024
Name of related party
Genius Star Management Consulting Co., Ltd.	$-	$45,982
Other accrued expenses	31 December 2025	31 December 2024
Name of related party
Benefit Transport S.A.	$7,936,535	$6,649,265
Other related parties	361,891	716,257
Total	$8,298,426	$7,365,522

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):

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

31 December 2025

Name of related party	Max balance	Ending balance
Benefit Transport S.A.	$53,286,832	$39,600,000
Samurai Investment S.A.	39,490,353	36,497,278
Total	$92,777,185	$76,097,278

31 December 2024

Name of related party	Max balance	Ending balance
Benefit Transport S.A.	$79,098,448	$53,220,685
Samurai Investment S.A.	44,351,000	39,490,353
Total	$123,449,448	$92,711,038

Interest expenses	For the Years Ended 31 December
Name of related party	2025	2024
Benefit Transport S.A.	$3,104,902	$4,442,150
Samurai Investment S.A.	2,452,325	3,053,779
Total	$5,557,227	$7,495,929

The interest expenses of financing were calculated based on the SOFR rate plus 2% per

month commencing from March 2024. The interest expenses of financing will be calculated

based on the SOFR rate plus 1% per month commencing from 1 January 2026.

E. Leases

(a) For the years ended 31 December 2025 and 2024, 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 2025	31 December 2024
Name of related party
Key management	$158,810	$304,396
Other related parties	75,388	144,499
Total	$234,198	$448,895

Lease liabilities	31 December 2025	31 December 2024
Name of related party
Key management	$158,962	$300,470
Other related parties	75,368	142,463
Total	$234,330	$442,933

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

Interest expense	For the Years Ended 31 December
Name of related party	2025	2024
Key management	$8,894	$470
Other related parties	4,262	-
Total	$13,156	$470

(b) As at 1 January 2024, the Group entered into 3-year office lease contracts with the

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.

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.

(d) For the years ended 31 December 2025 and 2024, the Group entered into leases with

other related parties as a lessor as follows:

Rent revenue	For the Years Ended 31 December
Name of related party	2025	2024
Other related parties	$158,207	$153,159

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. Others

(a) 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).

(b) For the year ended 31 December 2025, the installments for sale and leaseback

transactions paid to other related parties were ¥86,800 thousand, while interest

expenses were ¥646,898.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(3) Key management personnel compensation

For the years ended 31 December 2025 and 2024, key management personnel compensation

was as follows:

	For the Years Ended 31 December
	2025	2024
Salary and bonus	$843,662	$1,122,594
Post-employment benefits	6,928	7,671
	$850,590	$1,130,265

8. Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Secured liabilities	31 December 2025	31 December 2024
Property, plant and equipment	Bank loans and long-
	term payables
	(including due to
	related parties)	$1,317,872,000	$1,848,275,000
Investment property	Bank loans	2,281,173	2,194,490
Financial assets at fair value through
other comprehensive income	Bank loans	5,627,961	2,531,091
Other financial assets	Bank loans	26,528,206	36,491,161
		$1,352,309,340	$1,889,491,742

9. Significant commitments and contingencies

(1) The Group had entered into ship building contracts as follows:

	31 December 2025
Vessels		12
Contract price	$393,023	thousand
Prepaid	71,039	thousand
Financed ship building contracts	thousand	-

The remaining balance of the contract price is payable upon keel-laying, launching, and

delivery.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

The ship building contracts categorized by year of delivery were as follows:

	Contract Price
Year of delivery	(USD thousand)	Number of vessels
2026	$251,701	8
2027	141,322	4
Total	$393,023	12

(2) Financial guarantee

	Name of relative
Guarantor	party guarantee	31 December 2025	Ending date	Purpose
WML	Subsidiaries	$392,208 thousand	2034.02	Borrowings
		¥14,824,837 thousand
		CHF130,445 thousand
The Company	Subsidiaries	$536,428 thousand	2033.06	Borrowings and
		¥32,746,638 thousand		operating fund
		CHF109,596 thousand
WML	The Company	$3,000 thousand	2026.09	Operating fund
The Company	WII	NT$229,640 thousand	2029.05	Borrowings
Amis Integrity S.A.	Daiwan Glory S.A.	¥719,061 thousand	2027.07	Borrowings
Daiwan Glory S.A.	Amis Integrity S.A.	¥1,086,181 thousand	2027.07	Borrowings

Guarantor	party guarantee	31 December 2024	Ending date	Purpose
WML	Subsidiaries	$483,226 thousand	2033.06	Borrowings
		¥28,782,453 thousand
		CHF67,546 thousand
The Company	Subsidiaries	$595,125 thousand	2033.06	Borrowings and
		¥50,209,797 thousand		operating fund
		CHF44,306 thousand
WML	The Company	$3,000 thousand	2025.07	Operating fund
The Company	WII	NT$290,640 thousand	2029.05	Borrowings
Amis Integrity S.A.	Daiwan Glory S.A.	¥874,141 thousand	2027.07	Borrowings
Daiwan Glory S.A.	Amis Integrity S.A.	¥1,247,814 thousand	2027.07	Borrowings

Name of relative

10. Losses due to major disasters:

None.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

11. Significant subsequent events:

(1) On 26 February 2021, the Group has entered into a ship financing lease arrangement in respect

of one vessel with a contractual purchase price of ¥1,550,000 thousand. The customer

exercised the purchase option on 13 January 2026, and the Group received a deposit of

¥155,000 thousand on 3 February 2026.The delivery of the vessel is expected to be in the

period from July to September 2026.

(2) On 10 February 2026, the Group entered into a ship selling contract to sell one vessel for

$7,500 thousand, and received deposit of $750 thousand on 11 February 2026. The delivery of

the vessel is expected to be in the period from April to September 2026.

12. Others

(1) Categories of financial instruments

Financial assets

	31 December 2025	31 December 2024
Financial assets at fair value through profit or loss	$984,000	$822,100
Financial assets at fair value through other
comprehensive income	9,289,311	9,717,541
Financial assets at amortized cost:
Cash and cash equivalents (excluding cash on hand)	151,500,885	135,147,863
Accounts receivable and other receivables
(including due from related parties)	15,148,014	11,734,708
Subtotal	166,648,899	146,882,571
Other financial assets	26,528,206	36,491,161
Total	$203,450,416	$193,913,373

Financial liabilities

	31 December 2025	31 December 2024
Financial liabilities at amortized cost:
Short-term borrowings	$66,893,853	$21,470,519
Accounts payable (including to related parties)	5,802,178	6,063,852
Bonds payable (including current portion)	31,582,705	30,197,916
Long-term borrowings (including current portion)	676,547,588	799,891,874
Long-term accounts payable (including due to
related parties)	131,517,061	164,201,892
Lease liabilities (including current portion)	93,929,085	122,419,807
Total	$1,006,272,470	$1,144,245,860

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(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 , Japanese Yen and Swiss Franc.

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 Japanese Yen and Swiss Franc. The

information of the sensitivity analysis is as follows:

When USD strengthens/weakens against Japanese Yen and Swiss Franc by 10%, the profit

for the years ended 31 December 2025 and 2024 increase/decrease by $11,247,537 and

$2,521,634, respectively; the equity increase/decrease by $0 and $0, respectively.

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 10 basis points of interest rate in a reporting period

could cause the profit for the years ended 31 December 2025 and 2024 to decrease/increase

by $968,489 and $1,107,266, 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 2025 and 2024, the accounts receivable amounted to $6,588,653 and

$5,225,392, constituting 0.25% and 0.19% 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)

(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 2025:

		Contractual
	Carrying amount	cash flow	1 year	2 years	3 to 5 years	> 5 years
Non-derivative financial liabilities
Short-term borrowings	$66,893,853	$67,215,313	$67,215,313	$-	$-	$-
Accounts payable
(including due to related parties)	5,802,178	5,802,178	5,802,178	-	-	-
Bonds payable	31,582,705	34,054,742	556,970	556,970	32,940,802	-
Long-term borrowings	676,547,588	752,456,102	135,380,927	109,314,365	342,220,745	165,540,065
Long-term accounts payable
(including due to related parties)	131,517,061	154,492,800	11,995,984	11,988,144	39,561,097	90,947,575
Lease liabilities	93,929,085	103,240,855	19,824,081	9,234,241	54,810,240	19,372,293
	$1,006,272,470	$1,117,261,990	$240,775,453	$131,093,720	$469,532,884	$275,859,933

As at 31 December 2024:

		Contractual
	Carrying amount	cash flow	1 year	2 years	3 to 5 years	> 5 years
Non-derivative financial liabilities
Short-term borrowings	$21,470,519	$21,721,397	$21,721,397	$-	$-	$-
Accounts payable
(including due to related parties)	6,063,852	6,063,852	6,063,852	-	-	-
Bonds payable	30,197,916	33,170,658	533,781	533,781	32,103,096	-
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)	164,201,892	201,125,148	16,555,859	15,436,148	49,918,310	119,214,831
Lease liabilities	122,419,807	135,608,780	31,849,614	20,024,471	52,706,989	31,027,706
	$1,144,245,860	$1,312,894,448	$290,601,958	$177,299,247	$453,196,923	$391,796,320

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

(6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the year ended 31 December 2025:

		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)	Bonds payable	received	activities
As at 1 Jan. 2025	$21,470,519	$799,891,874	$164,201,892	$122,419,807	$30,197,916	$183	$1,138,182,191
Cash flows	43,425,222	(140,060,932)	(33,703,399)	(30,183,594)	-	51	(160,522,652)
Non-cash changes
Foreign exchange
movement	1,998,112	16,716,646	654,573	1,580,497	1,314,058	8	22,263,894
Other movements	-	-	363,995	112,375	70,731	-	547,101
As at 31 Dec. 2025	$66,893,853	$676,547,588	$131,517,061	$93,929,085	$31,582,705	$242	$1,000,470,534

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)	Bonds payable	received	activities
As at 1 Jan. 2024	$30,527,226	$962,414,725	$162,242,671	$143,544,254	$45,059,803	$195	$1,343,788,874
Cash flows	(8,038,135)	(119,056,349)	5,662,793	(12,956,121)	(12,253,249)	-	(146,641,061)
Non-cash changes
Foreign exchange
movement	(1,018,572)	(43,466,502)	(3,997,888)	(8,984,931)	(2,701,131)	(12)	(60,169,036)
Other movements	-	1,203,414	-	294,316	816,605	92,493	-
As at 31 Dec. 2024	$21,470,519	$799,891,874	$164,201,892	$122,419,807	$30,197,916	$183	$1,138,182,191

(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)

(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.).

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)

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 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through
profit or loss	$-	$-	$984,000	$984,000
Financial assets at fair value through
other comprehensive income	$9,289,311	$-	$-	$9,289,311

As at 31 December 2024

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through
profit or loss	$-	$-	$822,100	$822,100
Financial assets at fair value through
other comprehensive income	$9,717,541	$-	$-	$9,717,541

Transfers between Level 1 and Level 2 during the period

During the years ended 31 December 2025 and 2024, 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)

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for

movements during the period is as follows:

			Assets
			At fair value through
			profit or loss
			Structured note
Beginning balances as at 1 January 2025			$822,100
Total gains and losses recognized for the year ended 31 December 2025:
Amount recognized in profit or (loss) (presented in “other profit or loss”)			197,125
Acquisition/issues for the year ended 31 December 2025			-
Others			(35,225)
Ending balances as at	31 December	2025	$984,000

			Assets
			At fair value through
			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	2024	31 December	-
Others			(53,857)
Ending balances as at	31 December	2024	$822,100

Total gains and losses recognized for the years ended 31 December 2025 and 2024 in the

table above contain gains and (losses) related to structured note on hand as at 31 December

2025 and 2024 in the amount of $197,125 and $(26,743), 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.

Valuation process used for fair value measurements categorized within Level 3 of the fair

value hierarchy

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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	202	5	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))	$2,653,750	2,653,750	$	-	$	-	$
As at 31 December	202	4	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))		$2,531,838	$	-	$	-	$2,531,838

(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 2025		As at 31 December 2024
			Foreign currency	Exchange rate		Foreign currency	Exchange rate
			(Note 1)	(Note 2)	USD/JPY	(Note 1)	(Note 2)	USD/JPY
Financial liabilities
Monetary item
USD	：JPY		¥1,726,768,397	$-	-	¥-	$11,053,440	0.0064
JPY	：USD		¥4,553,933,590	156.57	$29,085,608	¥5,666,064,676	156.22	$36,269,778
CHF	：	USD	CHF66,069,711	0.7923	$83,389,765	CHF -	-	$-
CHF	：	JPY	CHF20,974,520	0.0051	¥4,144,870,161	CHF -	-	¥-
NTD	：USD		NT$992,328,599	31.42	$31,582,705	NT$990,038,677	32.785	$30,197,916

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

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 2025 and 2024, the Group had foreign exchange (losses)

gains of $(8,089,805) and $6,216,483, 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 2025

No.	Name of Vessel	Construction year	D.W.T.	Vessel type
1	Amis Ace	2013	60,830	Supramax
2	Amis Brave	2013	61,467	Supramax
3	Amis Champion	2014	60,830	Supramax
4	Amis Dolphin	2015	60,830	Supramax
5	Amis Elegance	2015	55,404	Supramax
6	Amis Fortune	2015	55,468	Supramax
7	Amis Glory	2016	55,474	Supramax
8	Amis Hero	2017	63,469	Supramax
9	Amis Integrity	2017	62,980	Supramax
10	Amis Justice	2017	63,531	Supramax
11	Amis Kalon	2010	58,107	Supramax
12	Amis Leader	2010	58,107	Supramax
13	Amis Nature	2018	55,472	Supramax
14	Amis Power	2018	64,012	Supramax

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

No.	Name of Vessel	Construction year	D.W.T.		Vessel type
15	Amis Queen	2019	63,424		Supramax
16	Amis Respect	2020	63,449		Supramax
17	Amis Star	2019	61,123		Supramax
18	Amis Treasure	2020	61,125		Supramax
19	Amis Unicorn	2020	60,903		Supramax
20	Amis Victory	2020	63,364		Supramax
21	Amis Wealth	2021	63,364		Supramax
22	Amis Wisdom I	2010	61,611		Supramax
23	Amis Wisdom II	2010	61,611		Supramax
24	Amis Wisdom VI	2011	61,456		Supramax
25	Amis Xcel	2024	63,793		Supramax
26	Amis Youth	2024	63,	720	Supramax
27	Atayal Ace	2013	16,805		Handy
28	Atayal Mariner	2012	16,813		Handy
29	Atayal Star	2012	16,806		Handy
30	Bunun Ace	2013	37,744		Handy
31	Bunun Benefit	2019	37,372		Handy
32	Bunun Dynasty	2014	37,795		Handy
33	Bunun Fortune	2015	37,790		Handy
34	Bunun Infinity	2016	37,654		Handy
35	Bunun Justice	2017	37,748		Handy
36	Bunun Kalon	2018	37,653		Handy
37	Bunun Leader	2019	37,650		Handy
38	Bunun Miracle	2020	37,060		Handy
39	Bunun Noble	2020	37,655		Handy
40	Bunun Power	2021	37,283		Handy
41	Bunun Queen	2022	37,299		Handy
42	Bunun Respect	2021	37,987		Handy
43	Bunun Star	2022	37,301		Handy
44	Bunun Treasure	2022	37,875		Handy
45	Bunun Unicorn	2023	40,045		Handy
46	Bunun Victory	2023	40,074		Handy
47	Bunun Wisdom	2012	38,168		Handy
48	Bunun Xcel	2023	39,697		Handy
49	Bunun Youth	2023	39,703		Handy

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

No.	Name of Vessel	Construction year	D.W.T.	Vessel type
50	Bunun Zest	2023	39,601	Handy
51	Daiwan Elegance	2015	35,331	Handy
52	Daiwan Fortune	2015	34,893	Handy
53	Daiwan Glory	2015	35,531	Handy
54	Daiwan Hero	2016	34,376	Handy
55	Daiwan Infinity	2016	34,376	Handy
56	Daiwan Justice	2016	34,327	Handy
57	Daiwan Kalon	2016	34,327	Handy
58	Daiwan Leader	2018	34,442	Handy
59	Daiwan Miracle	2019	34,447	Handy
60	Daiwan Wisdom	2010	31,967	Handy
61	Genius Star IX	2009	12,005	Handy
62	Global Faith	2010	28,386	Handy
63	Golden Kiku	2022	82,459	Panamax
64	Jacques	2021	4,745	LPG
65	Kanavu Benefit	2021	37,929	Handy
66	Katagalan Ace	2023	82,680	Panamax
67	Katagalan Brave	2023	82,719	Panamax
68	Katagalan Champion	2024	84,792	Panamax
69	Katagalan Wisdom	2012	98,697	Panamax
70	Katagalan Wisdom III	2012	98,697	Panamax
71	Ligulao	2010	5,296	Other-PCTC
72	Mega Benefit	2018	80,733	Panamax
73	Naluhu	2010	58,107	Supramax
74	Ocean Victory	2011	28,386	Handy
75	Paiwan Ace	2024	40,236	Handy
76	Paiwan Brave	2025	39,165	Handy
77	Paiwan Wisdom	2010	31,967	Handy
78	Papora Wisdom	2009	28,344	Handy
79	Pescadores	1999	44	Other-Passenger
80	Poavosa Ace	2013	28,208	Handy
81	Poavosa Brave	2009	28,367	Handy
82	Poavosa Wisdom	2009	28,234	Handy
83	Poavosa Wisdom III	2011	28,232	Handy
84	Poavosa Wisdom VI	2011	28,213	Handy

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

No.	Name of Vessel	Construction year	D.W.T.		Vessel type
85	Poavosa Wisdom VII	2012	28,208		Handy
86	Poavosa Wisdom VIII	2013	28,208		Handy
87	Qanux Benefit	2025	13,	394	Handy
88	Rukai Benefit	2019	14,040		Handy
89	Sakizaya Ace	2013	74,936		Panamax
90	Sakizaya Brave	2013	74,940		Panamax
91	Sakizaya Champion	2014	78,080		Panamax
92	Sakizaya Diamond	2015	81,938		Panamax
93	Sakizaya Elegance	2015	81,938		Panamax
94	Sakizaya Future	2016	81,938		Panamax
95	Sakizaya Glory	2016	84,883		Panamax
96	Sakizaya Hero	2016	81,067		Panamax
97	Sakizaya Integrity	2016	81,010		Panamax
98	Sakizaya Justice	2017	81,691		Panamax
99	Sakizaya Kalon	2017	81,691		Panamax
100	Sakizaya Leader	2017	81,691		Panamax
101	Sakizaya Miracle	2017	81,668		Panamax
102	Sakizaya Orchid	2017	81,588		Panamax
103	Sakizaya Power	2017	81,574		Panamax
104	Sakizaya Queen	2018	81,858		Panamax
105	Sakizaya Respect	2018	81,858		Panamax
106	Sakizaya Star	2020	82,516		Panamax
107	Sakizaya Treasure	2020	82,500		Panamax
108	Sakizaya Unicorn	2021	82,527		Panamax
109	Sakizaya Victory	2021	82,418		Panamax
110	Sakizaya Wisdom	2011	76,457		Panamax
111	Sakizaya Xcel	2022	82,446		Panamax
112	Sakizaya Youth	2022	82,501		Panamax
113	Sakizaya Zest	2022	82,501		Panamax
114	Scarlet Eagle	2014	81,842		Panamax
115	Scarlet Falcon	2014	82,260		Panamax
116	Scarlet Rosella	2015	82,235		Panamax
117	Seediq Benefit	2021	16,920		Handy
118	Taikli	2011	13,139		Handy
119	Tao Ace	2013	25,037		Handy

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

No.	Name of Vessel	Construction year	D.W.T.	Vessel type
120	Tao Brave	2011	25,065	Handy
121	Tao Mariner	2010	25,065	Handy
122	Tao Star	2010	25,065	Handy
123	Tao Treasure	2013	25,036	Handy
124	Taokas Wisdom	2008	31,943	Handy
125	Tekung Benefit	2024	63,553	Supramax
126	Yami Benefit	2025	63,697	Supramax

13. Other disclosures

None.

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
	2025	(%)	2024	(%)
Revenue from external customers:
Singapore	$273,444,176	50	$313,211,472	49
The Netherlands	75,250,090	14	119,272,341	19
Denmark	49,443,118	9	53,860,005	9
Panama	46,205,798	9	51,002,657	8
Switzerland	42,839,632	8	27,456,553	4
Others	54,774,446	10	69,628,142	11
Total	$541,957,260	100	$634,431,170	100

WISDOM MARINE LINES CO., LIMITED (CAYMAN) AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D)

		2025.12.31	2024.12.31
Non	-	current assets	:
Panama	$	1,828,196,117	$2,015,100,509
Cayman		183,618	2,345,725
Taiwan		15,363,272	15,227,07	1
Liberia		472,129,143	491,846,140
Total	$	2,315,872,150	$2,524,519,44	5

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

2025 and 2024 were as follows:

		For the Years Ended 31 December
			202		5				202		4
Customer A	:	$1	13	,	523	,	807	$1	36	,	484	,	679
Customer B	:	90	$	,	287	,	148	$119,134,062
Customer	C:	66	$	,	824	,	851	$86,736,350