Interim report
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Stock Code:2615 WAN HAI LINES LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS With Independent Auditors’ Review Report For the Six Months Ended June 30, 2026 and 2025 Address: 10TH FLOOR, No. 136, SUNG CHIANG ROAD, TAIPEI, TAIWAN Telephone: (02)2567-7961 The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail. ～ 1 ～
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Table Of Contents Contents Page 1 . C o v e r P a g e 1 2 . T a b l e o f C o n t e n t s 2 3 . I n d e p e n d e n t A u d i t o r s ’ R e v i e w R e p o r t 3 4. Consolidated Balance Sheets 4 5. Consolidated Statements of Comprehensive Income 5 6. Consolidated Statements of Changes in Equity 6 7 . C o n s o l i d a t e d S t a t e m e n t s o f C a s h F l o w s 7 8 . N o t e s t o t h e C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s (1) Company History 8 (2) Approval Date and Procedures of the Consolidated Financial Statements 8 (3) New Standards, Amendments and Interpretations adopted 8~9 (4) Summary of Material Accounting Policies 10~13 (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty 13 (6) Explanation to Significant Accounts 14~51 (7) Related-Party Transactions 51~55 (8) Pledged Assets 55 (9) Significant Contingencies and Commitments 55~58 (10) Losses Due to Major Disasters 58 (11) Significant Subsequent Events 58 (12) Others 59 (13) Other Disclosures (a) Information on significant transactions 59~64 (b) Information on investees 64~65 (c) Information on investment in Mainland China 65~66 (14) Segment Information 66 ～ 2 ～
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Independent Auditors’ Review Report To the Board of Directors of Wan Hai Lines Ltd.: Introduction We have reviewed the accompanying consolidated balance sheets of Wan Hai Lines Ltd. (the “Company”) and its subsidiaries (together referred to as the “Group”) as of June 30, 2026 and 2025, the related consolidated statements of comprehensive income for the three months and the six months ended June 30, 2026 and 2025, as well as the changes in equity and cash flows for the six months ended June 30, 2026 and 2025, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standards (“ IASs” ) 34, “I nterim Financial Reporting” e ndorsed by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “R eview of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of people responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Basis for Qualified Conclusion As stated in Note 4(b), the consolidated financial statements included the financial statements of certain non- significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $320,174 t housand and $323,157 t housand, constituting 0% o f consolidated total assets at June 30, 2026 and 2025, respectively, total liabilities amounting to $221,877 thousand and $219,519 thousand, constituting 0% o f consolidated total liabilities at June 30, 2026 a nd 2025, respectively, and total comprehensive income (loss) amounting to $6,392 thousand, $6,778 thousand, $12,741 thousand and $15,528 thousand, constituting 0% of consolidated total comprehensive income (loss) for the three months and the six months ended June 30, 2026 and 2025, respectively. Furthermore, as stated in Note 6(h), the other equity accounted investments of the Group i n its investee companies of $1,173,593 thousand and $1,009,208 thousand as of June 30, 2026 and 2025, respectively, and its equity in net earnings on these investee companies of $140,857 t housand, $110,170 t housand, $260,175 thousand and $203,428 t housand for the three months and the six months ended June 30, 2026 and 2025, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors. 〜3〜
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Qualified Conclusion Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2026 and 2025, and of its consolidated financial performance for the three months and the six months ended June 30, 2026 and 2025, as well as its consolidated cash flows for the six months e nded June 30, 2026 a nd 2025 i n accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IASs 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The engagement partners on the reviews resulting in this independent auditors’ review report are Chen, Yi-Chun and Kuo, Rou-Lan. KPMG Taipei, Taiwan (Republic of China) August 12, 2026 Notes to Readers The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review s uch consolidated financial statements are those generally accepted and applied in the Republic of China. The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail. 〜3-1〜
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2026.6.30 2025.12.31 2025.6.30 Assets Amount ％ Amount ％ Amount ％ Current assets: 1100 Cash and cash equivalents (notes (6)(a) and (aa)) $ 100,813,154 23 109,494,384 27 98,436,005 25 1110 Current financial assets at fair value through profit or loss (notes (6)(b) and (aa)) 16,937,924 4 11,003,003 3 8,430,468 2 1120 Current financial assets at fair value through other comprehensive income (notes (6)(c) and (aa)) — — 31,381 — — — 1136 Current financial assets at amortized cost (notes (6)(d) and (aa)) 11,827,479 3 7,904,352 2 25,688,356 7 1150 Notes receivable, net (notes (6)(f), (v) and (aa)) 42,138 — 35,845 — 56,763 — 1170 Accounts receivable, net (notes (6)(f), (v), (aa) and (7)) 4,884,076 1 3,127,848 1 3,491,613 1 1140 Current contract assets (note (6)(v)) 2,390,866 1 1,837,024 — 1,976,768 1 1200 Other receivables, net (notes (6)(aa) and (7)) 3,963,283 1 3,134,946 1 3,950,305 1 1330 Inventories (note (6)(g)) 6,173,831 1 3,543,099 1 3,658,574 1 1475 Receivables from agents (notes (6)(aa) and (7)) 649,485 — 671,914 — 634,155 — 1479 Other current assets (notes (6)(aa), (7) and (8)) 1,228,026 — 1,520,159 — 1,185,084 — 148,910,262 34 142,303,955 35 147,508,091 38 Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (notes (6)(c) and (aa)) 36,486,343 9 34,222,213 8 27,318,824 7 1550 Investments accounted for using equity method, net (note (6)(h)) 1,537,631 — 1,461,582 — 1,245,786 — 1600 Property, plant and equipment (notes (6)(i) and (8)) 197,681,376 45 184,243,982 45 171,229,871 44 1755 Right-of-use assets (note (6)(j)) 12,072,420 3 11,182,029 3 10,634,396 3 1760 Investment property (notes (6)(k) and (8)) 2,850,005 1 2,858,704 1 2,845,896 1 1780 Intangible assets (note (6)(l)) 110,980 — 146,795 — 146,417 — 1915 Prepayments for business facilities (note (9)) 34,396,340 8 32,163,134 8 26,656,107 7 1975 Net defined benefit asset, non-current (note (6)(r)) 187,012 — 155,047 — 81,496 — 1990 Other non-current assets (notes (6)(s), (aa), (8) and (9)) 542,362 — 516,225 — 409,378 — 285,864,469 66 266,949,711 65 240,568,171 62 Total Assets $ 434,774,731 100 409,253,666 100 388,076,262 100 2026.6.30 2025.12.31 2025.6.30 L i a b i l i t i e s a n d E q u i t y Amount ％ Amount ％ Amount ％ Current liabilities: 2100 Short-term borrowings (notes (6)(m) and (aa)) $ 518,000 — 40,000 — 9,094,079 2 2126 Current financial liabilities for hedging (notes (6)(e), (p) and (aa)) 145,540 — 145,742 — 147,581 — 2170 Accounts payable (notes (6)(aa) and (7)) 14,866,420 3 12,751,202 3 11,097,048 3 2200 Other payables (notes (6)(aa) and (7)) 13,054,238 3 4,898,683 1 14,218,945 4 2230 Current tax liabilities (note (6)(s)) 6,708,463 2 2,069,320 1 3,956,577 1 2280 Current lease liabilities (notes (6)(p), (aa) and (7)) 2,241,280 1 1,933,632 — 1,567,575 — 2320 Current portion of long-term loans (notes (6)(n), (o) and (8)) 9,048,393 2 8,762,145 2 13,543,538 3 2350 Payables to agents (notes (6)(aa) and (7)) 192,266 — 103,337 — 122,179 — 2399 Other current liabilities, others (notes (6)(v), (aa) and (7)) 2,983,906 1 1,967,570 1 2,279,764 1 49,758,506 12 32,671,631 8 56,027,286 14 Non-Current liabilities: 2511 Non-current financial liabilities for hedging (notes (6)(e), (p) and (aa)) 107,433 — 178,493 — 251,901 — 2530 Bonds payable (notes (6)(o) and (aa)) — — — — 2,000,000 1 2540 Long-term borrowings (notes (6)(n), (aa) and (8)) 40,299,564 9 46,058,874 11 39,972,362 10 2570 Deferred tax liabilities (note (6)(s)) 42,669,218 10 42,670,212 11 39,765,799 10 2580 Non-current lease liabilities (notes (6)(p), (aa) and (7)) 10,658,581 3 9,866,594 3 9,279,761 2 2630 Long-term deferred revenue (note (6)(q)) 51,574 — 47,136 — 47,136 — 2640 Accrued pension liabilities non-current (note (6)(r)) 386,188 — 342,015 — 346,280 — 2645 Guarantee deposits received (note (6)(aa)) 1,848,071 — 1,671,553 — 1,457,593 1 96,020,629 22 100,834,877 25 93,120,832 24 T o t a l l i a b i l i t i e s 145,779,135 34 133,506,508 33 149,148,118 38 Equity attributable to owners of parent (note (6)(t)): Share capital: 3110 O r d i n a r y s h a r e 28,061,464 6 28,061,464 7 28,061,464 8 3200 C a p i t a l s u r p l u s 1,271,775 — 1,271,775 — 1,271,775 — R e t a i n e d e a r n i n g s : 3310 L e g a l r e s e r v e 35,913,048 8 32,758,701 8 32,758,701 8 3350 R e t a i n e d e a r n i n g s - u n a p p r o p r i a t e d 206,495,137 48 198,861,786 49 177,127,133 46 242,408,185 56 231,620,487 57 209,885,834 54 O t h e r e q u i t y i n t e r e s t : 3411 E x c h a n g e d i f f e r e n c e s o n t r a n s l a t i o n o f foreign financial statements 16,001,430 4 12,854,038 3 (2,130,770) — 3420 U n r e a l i z e d g a i n s ( l o s s e s ) o n f i n a n c i a l assets at fair value through other comprehensive income 838,992 — 1,475,934 — 1,406,997 — 3450 Gains (losses) on hedging instruments (note (6)(e)) 5,576 — 33,509 — 35,794 — 16,845,998 4 14,363,481 3 (687,979) — Total equity attributable to owners of parent: 288,587,422 66 275,317,207 67 238,531,094 62 36XX N o n - c o n t r o l l i n g i n t e r e s t s 408,174 — 429,951 — 397,050 — T o t a l e q u i t y 288,995,596 66 275,747,158 67 238,928,144 62 Total liabilities and equity $ 434,774,731 100 409,253,666 100 388,076,262 100 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2026, December 31, 2025 and June 30, 2025 (Expressed in Thousands of New Taiwan Dollars) Seeing accompanying notes to financial statements. ～ 4 ～
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three months and six months ended June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share) For the three months ended June 30 For the six months ended June 30 2026 2025 2026 2025 Amount ％ Amount ％ Amount ％ Amount ％ 4000 Operating revenue (notes (6)(v) and (7)) $ 42,900,498 100 34,852,707 100 76,541,362 100 71,942,901 100 5000 Operating costs (notes (6)(g) and (7)) (29,869,864) (70) (24,952,709) (72) (55,854,096) (73) (51,146,340) (71) Gross profit 13,030,634 30 9,899,998 28 20,687,266 27 20,796,561 29 6000 Operating expenses (2,003,075) (4) (1,476,993) (4) (3,908,890) (5) (3,284,742) (5) 6500 Net other income (expenses) (note (6)(x)) 105,683 — 241,786 1 180,063 — 397,451 1 Income from operations 11,133,242 26 8,664,791 25 16,958,439 22 17,909,270 25 N o n - o p e r a t i n g i n c o m e a n d e x p e n s e s ( n o t e s ( 6 ) ( h ) , ( y ) a n d ( 7 ) ) : 7100 Interest income 1,265,949 3 1,590,845 5 2,495,222 3 3,279,996 5 7010 Other income 99,084 — 89,054 — 107,949 — 96,976 — 7020 Other gains and losses 3,833,406 9 (8,933,009) (26) 6,792,027 9 (8,392,302) (12) 7050 Finance costs (401,963) (1) (474,930) (1) (807,804) (1) (990,530) (1) 7060 Share of profit (loss) of associates and joint ventures accounted for using equity method 182,669 1 158,573 — 356,180 1 292,401 — T o t a l n o n - o p e r a t i n g i n c o m e a n d e x p e n s e s 4,979,145 12 (7,569,467) (22) 8,943,574 12 (5,713,459) (8) 7900 Profit before tax 16,112,387 38 1,095,324 3 25,902,013 34 12,195,811 17 7950 Less: Income tax expenses (note (6)(s)) 4,570,902 11 12,216 — 6,683,922 9 2,371,609 3 Net Profit 11,541,485 27 1,083,108 3 19,218,091 25 9,824,202 14 Other comprehensive income (loss): 8310 Items that may not be reclassified subsequently to profit and loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (15,971) — 284,837 1 (82,080) — 437,725 1 8349 Less: Income tax related to components of other comprehensive income that may not be reclassified subsequently (note (6)(s)) — — — — — — — — Total items that may not be reclassified subsequently to profit and loss (15,971) — 284,837 1 (82,080) — 437,725 1 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation (973,238) (2) (26,372,038) (76) 3,138,175 4 (23,547,722) (33) 8367 Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income (note (6)(z)) (139,536) (1) 143,721 1 (554,862) (1) 397,365 — 8368 Gains (losses) on hedging instrument (note (6)(e)) (24,775) — 58,795 — (27,933) — 33,432 — 8399 Less: Income tax related to components of other comprehensive income that may be reclassified to profit or loss — — — — — — — — Total items that may be reclassified subsequently to profit and loss (1,137,549) (3) (26,169,522) (75) 2,555,380 3 (23,116,925) (33) Other comprehensive income (net of tax) (1,153,520) (3) (25,884,685) (74) 2,473,300 3 (22,679,200) (32) 8500 Total comprehensive income $ 10,387,965 24 (24,801,577) (71) 21,691,391 28 (12,854,998) (18) Profit (loss), attributable to: 8610 Owners of the parent company $ 11,534,619 27 1,076,892 3 19,206,137 25 9,808,823 14 8620 N o n - c o n t r o l l i n g i n t e r e s t s 6,866 — 6,216 — 11,954 — 15,379 — $ 11,541,485 27 1,083,108 3 19,218,091 25 9,824,202 14 Comprehensive income attributable to: 8710 Owners of the parent company $ 10,384,728 24 (24,785,865) (71) 21,688,654 28 (12,854,335) (18) 8720 N o n - c o n t r o l l i n g i n t e r e s t s 3,237 — (15,712) — 2,737 — (663) — $ 10,387,965 24 (24,801,577) (71) 21,691,391 28 (12,854,998) (18) 9750 Basic earnings per share (New Taiwan Dollar) (note (6)(u)) $ 4.11 0.38 6.84 3.50 9850 Diluted earnings per share (New Taiwan Dollar) (note (6)(u)) $ 4.11 0.38 6.84 3.49 Seeing accompanying notes to financial statements. ～ 5 ～
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the six months ended June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars) Equity Attributable to Owners of the Company Stock Retained Earnings Other Equity Items Common Stock Capital Surplus Legal reserve Retained Earnings- Unappropriated Foreign Currency Translation Differences Arising from Foreign Operations Unrealized Gains (losses) from financial assets measured at fair value through other comprehensive income Gains (losses) on hedging instruments Total Equity Attributable to Owners of Parent Non- controlling Interests Total Balance at January 1, 2025 $ 28,061,464 1,271,775 28,010,462 181,888,061 21,400,910 571,907 2,362 261,206,941 411,651 261,618,592 Net income — — — 9,808,823 — — — 9,808,823 15,379 9,824,202 Other comprehensive income (loss) — — — — (23,531,680) 835,090 33,432 (22,663,158) (16,042) (22,679,200) Total comprehensive income (loss) — — — 9,808,823 (23,531,680) 835,090 33,432 (12,854,335) (663) (12,854,998) Appropriation of retained earnings: Legal reserve — — 4,748,239 (4,748,239) — — — — — — Cash dividends — — — (9,821,512) — — — (9,821,512) — (9,821,512) C h a n g e s i n n o n - c o n t r o l l i n g i n t e r e s t s — — — — — — — — (13,938) (13,938) Balance at June 30, 2025 $ 28,061,464 1,271,775 32,758,701 177,127,133 (2,130,770) 1,406,997 35,794 238,531,094 397,050 238,928,144 Balance at January 1, 2026 $ 28,061,464 1,271,775 32,758,701 198,861,786 12,854,038 1,475,934 33,509 275,317,207 429,951 275,747,158 Net income — — — 19,206,137 — — — 19,206,137 11,954 19,218,091 Other comprehensive income (loss) — — — — 3,147,392 (636,942) (27,933) 2,482,517 (9,217) 2,473,300 Total comprehensive income (loss) — — — 19,206,137 3,147,392 (636,942) (27,933) 21,688,654 2,737 21,691,391 Appropriation of retained earnings: Legal reserve — — 3,154,347 (3,154,347) — — — — — — Cash dividends — — — (8,418,439) — — — (8,418,439) — (8,418,439) C h a n g e s i n n o n - c o n t r o l l i n g i n t e r e s t s — — — — — — — — (24,514) (24,514) Balance at June 30, 2026 $ 28,061,464 1,271,775 35,913,048 206,495,137 16,001,430 838,992 5,576 288,587,422 408,174 288,995,596 Seeing accompanying notes to financial statements. ～ 6 ～
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the six months ended June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars) For the six months ended June 30, 2026 2025 Cash flows from (used in) operating activities: Profit before income tax $ 25,902,013 12,195,811 Adjustments: Adjustments to reconcile profit (loss): Depreciation expense 7,619,218 7,522,260 Amortization expense 42,962 34,317 Net gain on financial assets at fair value through profit or loss (5,970,888) (42,127) Interest expense 807,804 990,530 Gain on disposal of debt instruments measured at fair value through other comprehensive income (1,225) (2,180) Interest revenue (2,495,222) (3,279,996) Dividend income (107,946) (95,476) Share of income of associates and joint ventures accounted for using equity method (356,180) (292,401) Gain on disposal of property, plant and equipment (180,063) (397,451) I m p a i r m e n t l o s s o n n o n - f i n a n c i a l a s s e t s 70 — Loss (gain) on unrealized foreign exchange (183,400) 1,235,774 Others 350 76,919 Total adjustments to reconcile profit (loss) (824,520) 5,750,169 Changes in operating assets and liabilities: Changes in operating assets, net: Financial assets at fair value through profit or loss, mandatorily measured at fair value 35,967 (10,608) Contract assets (553,842) 570,462 Notes receivable (6,293) (8,686) Accounts receivable (1,756,228) 223,395 Other receivables (382,758) (45,021) Inventories (2,630,732) 479,566 Receivables from agents 22,429 69,186 Other current assets 297,028 616,164 Accrued pension assets (31,965) (35,128) Total changes in operating assets, net (5,006,394) 1,859,330 Changes in operating liabilities, net: Accounts payable 2,115,218 (2,138,697) Other payables 509,443 (103,147) Payables to agents 88,929 (42,452) Other current liabilities 990,661 8,218 Accrued pension liabilities 44,173 22,869 Total changes in operating liabilities, net 3,748,424 (2,253,209) Total changes in operating assets and liabilities (1,257,970) (393,879) Total adjustments (2,082,490) 5,356,290 Cash inflow generated from operations 23,819,523 17,552,101 Income taxes paid (2,289,448) (3,494,668) Net cash provided by operating activities 21,530,075 14,057,433 Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income (4,272,661) (4,050,138) Proceeds from disposal of financial assets at fair value through other comprehensive income 1,827,246 265,638 Acquisition of financial assets at amortized cost (3,923,127) — Proceeds from disposal of financial assets at amortized cost — 41,869,704 Acquisition of investments accounted for using equity method (30,820) — Acquisition of property, plant and equipment (9,700,233) (5,736,217) Proceeds from disposal of property, plant and equipment 631,377 689,055 Acquisition of intangible assets (6,995) (35,735) Acquisition of investment property (123) — O t h e r n o n - c u r r e n t a s s e t s 18,991 (27,795) Prepayments for business facilities (11,789,236) (9,735,991) Interest received 2,608,431 4,078,427 Dividends received 104,702 150,036 Net cash used in investing activities (24,532,448) 27,466,984 Cash flows from financing activities: I n c r e a s e i n s h o r t - t e r m l o a n s 478,000 9,100,000 P r o c e e d s f r o m l o n g - t e r m l o a n s 3,280,000 7,899,060 R e p a y m e n t o f l o n g - t e r m l o a n s (8,722,936) (21,729,868) Guarantee deposits received 202,194 (118,866) Payments of lease liabilities (921,178) (1,314,052) Interest paid (808,900) (992,899) C h a n g e i n n o n - c o n t r o l l i n g i n t e r e s t s (9,513) (461) Net cash used in financing activities (6,502,333) (7,157,086) Foreign exchange rate effects 823,476 (8,623,135) Net increase in cash and cash equivalents (8,681,230) 25,744,196 Cash and cash equivalents, beginning of period 109,494,384 72,691,809 Cash and cash equivalents, end of period $ 100,813,154 98,436,005 Seeing accompanying notes to financial statements. ～ 7 ～
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(1) Company History Wan Hai Lines Ltd. (the Company) was incorporated as a company limited by shares on February 24, 1965, under the approval of the Ministry of Economic Affairs, ROC. The address of the Company’s registered office is 10F, No. 136 Sung Chiang Rd., Taipei City. The Company and its subsidiaries (the Group) are primarily involved in the business of international marine transportation, shipping agencies, container storage service, and the sale and rental of vessels and containers. (2) Approval Date and Procedures of the Consolidated Financial Statements The consolidated interim financial statements for the three months ended June 30, 2026 and 2025 and for the six months ended June 30, 2026 and 2025 were authorized for issue by the Board of Directors on August 12, 2026. (3) New Standards, Amendments and Interpretations adopted: (a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted. The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2026: ● IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts” ● Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” ● Annual Improvements to IFRS Accounting Standards—Volume 11 ● Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” (b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective. The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2027 , would not have a significant impact on its consolidated financial statements: ● IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 ● Amendments to IAS 21“Translation to a Hyperinflationary Presentation Currency The Group expects to adopt the (following) new and amended standards, which effective for annual period beginning on January 1, 2028: (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 and 2025 (Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified) ~8~
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1. IFRS 18 “Presentation and Disclosure in Financial Statements” The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for b e t t e r a n d m o r e c o n s i s t e n t i n f o r m a t i o n f o r u s e r s , a n d w i l l a f f e c t a l l t h e e n t i t i e s . ● A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities. ● Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards. ● Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. The new standard introduces consequential amendments to IAS 7, which require to use the newly defined operating profit subtotal as the starting point for the statement of cash flows when presenting operating cash flows under the indirect method. The consequential amendments also provide specific guidance on the classification of interest and dividend cash flows. The Group is evaluating the impact on its consolidated financial statements upon the initial adoption of the new standard. 2. Amendments to IAS 28 “The Fair Value Option for Investments in Associates and Joint Ventures” The Group does not expect the amendments to have a significant impact on its consolidated financial statements. (c) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC The Group does not expect the (following) new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements: ● Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture” ● IFRS 20 “Regulatory Assets and Regulatory Liabilities” (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ~9~
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(4) Summary of Material Accounting Policies (a) Statement of compliance These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as the “Regulations”) and IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS Accounting Standards endorsed by the FSC) for a complete set of the annual consolidated financial statements. Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2025. For the related information, please refer to note (4) of the consolidated financial statements for the year ended December 31, 2025. (b) Basis of Consolidation 1. List of subsidiaries in the consolidated financial statements: The Company WAN HAI LINES (SINGAPORE) PTE LTD (WHL Singapore) Transportation and shipping agency services, chartering of ships, ship management, international transportation and shipping agency services 100.00 % 100.00 % 100.00 % The Company TK Logistics International Co., Ltd. (TK) Managing container terminals and storage facilities 55.00 % 55.00 % 55.00 % The Company k.k. WH Corporation (WH Corporation) Terminal operation and management service, and vessel rental service 100.00 % 100.00 % 100.00 % The Company BAO SHENG SHIPPING AGENCY CO., LTD. (BS) Acting as agent for transportation affair and contracting ocean shipping and related services 70.01 % 70.01 % 70.01 % The Company Dawin Logistics (International) Limited (Dawin) Investment, trucking and godown 100.00 % 100.00 % 100.00 % Name of investor Name of subsidiary Principal activity Shareholding % Note2026.6.30 2025.12.31 2025.6.30 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 0 ～
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The Company Wan Hai Lines (H.K.) Limited (WHL Hongkong) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % T h e C o m p a n y 、 WHL Thailand WGD Container Service (Thailand) Co., Ltd. (WGD) Container yard business 65.00 % 65.00 % 65.00 % WGD is an immaterial subsidiary whose financial statements have not been reviewed. WHL S i n g a p o r e 、 WHL INTL. WAN HAI LINES MEXICO, S.A. DE C.V. (WHL Mexico) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai Lines (M) Sdn. Bhd. (WHL Malaysia) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai Lines (Phils.), Inc. (WHL Phils.) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai Lines (Korea) Ltd. (WHL Korea) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai International Pte. Ltd. (WHL INTL.) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL Singapore Yi Chun Shipping Agencies Sdn. Bhd. (Yi Chun) ODD operation 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai (Vietnam) Ltd. (WHL Vietnam) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai Lines (Thailand) Limited (WHL Thailand) Transportation and shipping agency services 49.00 % 49.00 % 49.00 % The Company did not directly or indirectly h o l d o v e r o n e - h a l f o f the voting rights of W H L - T h a i l a n d ; however, the subsidiary WHL Singapore occupies three of the five seats on the board of W H L - T h a i l a n d . A s a result, WHL Singapore has a direct control over W H L - T h a i l a n d . WHL S i n g a p o r e 、 WHL INTL. WANHAI LINES ECUADOR S.A. (WHL Ecuador) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai Lines (USA) Ltd. (WHL USA) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % Name of investor Name of subsidiary Principal activity Shareholding % Note2026.6.30 2025.12.31 2025.6.30 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 1 ～
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WHL Singapore Bravely International Pte. Ltd. (BI) Transportation and investment 100.00 % 100.00 % 100.00 % WHL Singapore HE CHUN LOGISTICS COMPANY LIMITED (HE CHUN) ODD operation 100.00 % 100.00 % 100.00 % WHL Singapore Wan Hai Shipping Limited (WHL Shipping) Transportation and shipping agency services 70.00 % 70.00 % 70.00 % WHL S i n g a p o r e 、 WHL INTL. WAN HAI LINES PERU S.A.C. (WHL Peru) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL USA Wan Hai Lines (Arizona) LLC (WHL Arizona) House rental and management 100.00 % 100.00 % 100.00 % WHL INTL. Wan Hai Lines (India) PVT Ltd. (WHL India) Transportation and shipping agency services 100.00 % 100.00 % 100.00 % WHL INTL. Infinite Marine Investment Co., Ltd. (IM) Investment 100.00 % 100.00 % 100.00 % BI Bravely (Myanmar) Transport and Logistics Company Limited (Bravely (Myanmar)) Managing container, storage and logistics services 80.00 % 80.00 % 80.00 % WHL Hongkong Guangzhou Wan Hai Information Technology Ltd. (GZIT) Information technology services 100.00 % 100.00 % 100.00 % Dawin Shenzhen Uniwin International Logistics Ltd. (Shenzhen Uniwin) Freight transportation and acting as agent for transport affairs 100.00 % 100.00 % 100.00 % Dawin Blue Ocean Logistics (Shanghai) Ltd. (Blue) Containers, storage and international transportation services 100.00 % 100.00 % 100.00 % Name of investor Name of subsidiary Principal activity Shareholding % Note2026.6.30 2025.12.31 2025.6.30 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 2 ～
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Shenzhen Uniwin Clipper International Shipping Agency Ltd. (Clipper) International shipping agency services 100.00 % 100.00 % 100.00 % Shenzhen Uniwin Shenzhen Yong Chun International Shipping Management Co., Ltd. (SZYC) International shipping management 90.00 % 90.00 % 90.00 % Name of investor Name of subsidiary Principal activity Shareholding % Note2026.6.30 2025.12.31 2025.6.30 2. Subsidiaries excluded from the consolidated financial statements: None. (c) Employee benefits The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, and should make adjustments to material volatility of the market, material reimbursement and settlement, and other material one-time events. (d) Income taxes The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting. Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period. Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense. (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “ Interim Financial Reporting” endorsed by the FSC requires management to make judgments, and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. The preparation of the consolidated financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2025 . For the related information, please refer to note (5) of the consolidated financial statements for the year ended December 31, 2025. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 3 ～
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(6) Explanation to Significant Accounts Except for the following disclosures, there is no significant differences as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2025 . Please refer to note (6) of the 2025 annual consolidated financial statements. (a) Cash and cash equivalents 2026.6.30 2025.12.31 2025.6.30 Cash $ 155,234 144,893 127,043 Savings accounts 30,114,762 30,449,463 38,232,082 Time deposits 70,543,158 78,900,028 60,076,880 Cash and cash equivalents in statement of cash flows $ 100,813,154 109,494,384 98,436,005 (b) Financial assets and liabilities at fair value through profit or loss 2026.6.30 2025.12.31 2025.6.30 Mandatorily measured at fair value through profit or loss: N o n - d e r i v a t i v e f i n a n c i a l a s s e t s Stocks listed on domestic markets $ 16,937,924 11,003,003 8,430,468 1. For subsequent measurement of the net gain or loss on fair value on financial instruments at FVTPL, please refer to note (6)(y). 2. As of June 30, 2026 , December 31, 2025 , and June 30, 2025 , the Group’s financial assets were not pledged as collateral. (c) Financial assets at fair value through other comprehensive income 2026.6.30 2025.12.31 2025.6.30 Debt investments at fair value through other comprehensive income Corporate bonds $ 30,825,558 28,539,923 21,580,035 Equity investments at fair value through other comprehensive income Stocks listed on domestic markets 4,417,213 4,168,634 4,316,036 Stocks listed on foreign markets 653,767 792,227 708,304 Stocks unlisted on domestic markets 589,805 752,810 714,449 Subtotal 5,660,785 5,713,671 5,738,789 Total $ 36,486,343 34,253,594 27,318,824 Current $ — 31,381 — Non-current 36,486,343 34,222,213 27,318,824 Total $ 36,486,343 34,253,594 27,318,824 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 4 ～
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1. Debt investments at fair value through other comprehensive income The Group has assessed that the following securities are held within a business model whose objective is achieved by both collecting the contractual cash flows and by selling securities; therefore, they have been classified as debt investments at fair value through other comprehensive income. For gain on disposal, please refer to note (6)(y). 2. Equity investments at fair value through other comprehensive income The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term for strategic purposes. There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments as of June 30, 2026 and 2025. The Group has acquired 20.29% ordinary shares in Da Nang Port Joint Stock Company (Da Nang Port JSC), and the main activities of Da Nang JSC are to provide wharf services. Since the Group only occupied one of the seven seats in the Board of Directors, and did not participate in any daily operation as well as policy-making processes of the Group, the Group did not have significant influence on Da Nang Port JSC. 3. As of June 30, 2026 , December 31, 2025, and June 30, 2025 , the financial assets of the Group had not been pledged as collateral. (d) Financial assets at amortized cost 2026.6.30 2025.12.31 2025.6.30 Current $ 11,827,479 7,904,352 25,688,356 Financial assets at amortized cost are time deposits with validity period exceeding 3 months. The Group’s financial assets at amortized cost were not pledged as collateral. The Group’s degree of exposure to credit risk and currency risk, please refer to note (6)(aa). (e) Financial instruments used for hedging The amounts at the reporting da te relating to the lease liabilities designated as hedging instruments were as follows: (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 5 ～
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2026.6.30 2025.12.31 2025.6.30 Cash flow hedge: Financial liabilities used for hedging: Current lease liabilities $ 145,540 145,742 147,581 Non-current lease liabilities 107,433 178,493 251,901 Total $ 252,973 324,235 399,482 The Group’s strategy is to use lease liabilities to hedge its estimated foreign currency exposure in respect of highly probable future cash revenues. The amounts at the reporting date relating to the items designated as hedging instruments were as follows: Financial assets or liabilities designated to be hedging instruments Fair value Time period(s) during which the future cash flows generated Time period(s) during which the related gains or losses are expected to be recognized in the income statement Items to be hedged 2026.6.30 2025.12.31 2025.6.30 WHL terminal revenue (JPY) Lease Liabilities 252,973 324,235 399,482 2 0 2 6 ～ 2 0 2 8 2 0 2 6 ～ 2 0 2 8 For the three months ended June 30, For the six months ended June 30, Items 2026 2025 2026 2025 Amounts recognized as other comprehensive income $ (24,775) 58,795 (27,933) 33,432 For the six months ended June 30, 2026 and 2025, no ineffective portion of cash flow hedge that should be recognized in profit or loss, for reconciliation of each component of equity, and an analysis of other comprehensive income, please refer to note (6)(t). (f) Notes receivable and accounts receivable 2026.6.30 2025.12.31 2025.6.30 Notes receivable $ 42,138 35,845 56,763 Accounts receivable 4,885,759 3,129,531 3,493,296 Less: Allowance for doubtful receivables (1,683) (1,683) (1,683) $ 4,926,214 3,163,693 3,548,376 The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision was determined as follows: (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 6 ～
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2026.6.30 Gross carrying amount W e i g h t e d - a v e r a g e loss rate Loss allowance provision Current $ 1,853,993 0%~0.1282% — Overdue 0~30 days 2,927,006 0%~0.5774% 106 Overdue 31~120 days 108,522 0%~6.1476% 30 Overdue 121~365 days 29,659 0%~21.5078% 1 Overdue more than 365 days 8,717 0%~100% 1,546 $ 4,927,897 1,683 2025.12.31 Gross carrying amount W e i g h t e d - a v e r a g e loss rate Loss allowance provision Current $ 1,839,157 0%~0.1352% — Overdue 0~30 days 1,262,649 0%~0.609% 110 Overdue 31~120 days 46,975 0%~3.9012% 199 Overdue 121~365 days 7,895 0%~39.2247% 1 Overdue more than 365 days 8,700 0%~100% 1,373 $ 3,165,376 1,683 2025.6.30 Gross carrying amount W e i g h t e d - a v e r a g e loss rate Loss allowance provision Current $ 2,134,795 0%~0.1428% — Overdue 0~30 days 1,320,510 0%~0.6436% 131 Overdue 31~120 days 76,093 0%~1.7839% 247 Overdue 121~365 days 12,119 0%~72.0918% 164 Overdue more than 365 days 6,542 0%~100% 1,141 $ 3,550,059 1,683 The movement in the allowance for notes and account receivables were as follows: For the six months ended June 30, 2026 2025 Ending balance (equal to beginning balance) $ 1,683 1,683 Please refer to note (6)(aa) for the credit risks and the currency risks of the notes receivable, accounts receivable, other receivables and receivables from agents of the Group. Notes and accounts receivables of the Group had not been pledged as collateral. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 7 ～
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(g) Inventories Light marine diesel oil $ 771,954 492,579 453,123 Heavy marine diesel oil 5,697,086 2,711,331 2,878,044 Fresh lubricating oil 456,478 368,846 356,571 Subtotal 6,925,518 3,572,756 3,687,738 Less: Allowance for inventory valuation and obsolescence losses (751,687) (29,657) (29,164) Total $ 6,173,831 3,543,099 3,658,574 2026.6.30 2025.12.31 2025.6.30 For the three months ended June 30, 2026 and for the six months ended June 30, 2026 , the write- downs of inventories to net receivable value resulted in the loss on inventory value of $746,762 thousand and $717,037 thousand to be recognized as operating costs. For the three months ended June 30, 2025 and for the six months ended June 30, 2025, the write- downs of the inventories to net receivable value amounting to $157,934 thousand and $13,057 thousand, respectively, were recognized as gains on inventory value recoveries under operating costs due to the previous reason wherein the net realizable value of inventories was no longer lower than its costs. As of June 30, 2026 , December 31, 2025 and June 30, 2025 , the Group’s inventories were not pledged as collateral. (h) Investments accounted for using equity method A summary of the Group’s financial information for investments accounted for using the equity method at the reporting date is as follows: 2026.6.30 2025.12.31 2025.6.30 Associates $ 1,189,576 1,156,464 1,000,269 Joint venture 348,055 305,118 245,517 $ 1,537,631 1,461,582 1,245,786 1. Associates For the first half of 2017, the Group acquired 16.5% of the shares of Hai Phong International Container Terminal Company Ltd. (HICT) for USD 6,459 thousand in cash. The Group occupied one seat in the Board of Directors of HICT, and participated its finance and operating policy decision. Therefore, the Group has significant influence on it, and accounts for it using equity method. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 8 ～
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The financial information of individually non-significant associates using equity method included in the consolidated financial statements were as follows: 2026.6.30 2025.12.31 2025.6.30 The carrying amount of individually non- significant associates’ equity $ 1,189,576 1,156,464 1,000,269 For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Attributable to the Group: Profit (loss) from continuing operations $ 135,131 122,858 260,758 226,144 Total comprehensive income $ 135,131 122,858 260,758 226,144 2. Joint venture For the first half of 2026, the Group acquired 49% of the shares of EXPRESS PORT MANZANILLO SA DE CV (EPM) for USD 980 thousand in cash. The Group classifies its interest in EPM as a joint venture and accounts for it using the equity method. For the second half of 2023, the Group acquired 50% of the shares of PT. Sinergi Bahtera Mitra (SBM) for USD 800 thousand in cash. The Group has a residual interest in the net assets of SBM. Accordingly, the Group classifies its interest in SBM as a joint venture and accounts for it using the equity method. The financial information of individually non-significant joint venture using equity method included in the consolidated financial statements were as follows: 2026.6.30 2025.12.31 2025.6.30 The carrying amount of individually non- significant joint venture equity $ 348,055 305,118 245,517 For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Attributable to the Group: Profit (loss) from continuing operations $ 47,538 35,715 95,422 66,257 Total comprehensive income $ 47,538 35,715 95,422 66,257 3. Collateral As of June 30, 2026 , December 31, 2025 , and June 30, 2025 , The Group did not provide any investment accounted for using equity method as collaterals for its loans. 4. The unreviewed financial statements of investments accounted for using equity method (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 1 9 ～
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E x c e p t f o r W a n H a i L i n e s ( U A E ) L L C . 、 P h u c X u a n M a r i t i m e S e r v i c e C o m p a n y L i m i t e d 、 W a n H a n g T o u r s C o . , L t d . 、 Q i n g d a o P o r t & W i n I n t e r n a t i o n a l L o g i s t i c s C o . , L t d . 、 W H L o g i s t i c s P r i v a t e L i m i t e d 、 P H U H U N G M A R I T I M E S E R V I C E C O M P A N Y L I M I T E D a n d EXPRESS PORT MANZANILLO SA DE CV, investments were accounted for using equity method, and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed. (i) Property, plant and equipment The cost, depreciation, and impairment of the property, plant and equipment of the Group for the six months ended June 30, 2026 and 2025, were as follows: Land Building Vessels Containers Other equipment Privileged wharf equipment Total Cost: Balance at January 1, 2026 $ 2,825,979 2,647,572 203,853,554 47,037,018 3,308,581 4,565,345 264,238,049 Additions — 52,332 5,626,844 2,842,904 271,195 128,878 8,922,153 Reclassification — 193,938 9,197,100 — 111,916 52,779 9,555,733 Disposals — — (1,650,691) (1,184,902) (256,541) (4,292) (3,096,426) Effect of movements in exchange rates 528 14,644 2,525,136 (14) 18,843 (1,001) 2,558,136 Balance at June 30, 2026 $ 2,826,507 2,908,486 219,551,943 48,695,006 3,453,994 4,741,709 282,177,645 Balance at January 1, 2025 $ 2,241,497 2,354,664 197,559,435 45,119,796 2,991,267 3,430,685 253,697,344 Additions — — 5,185,477 943,269 111,531 130,415 6,370,692 Reclassification 585,911 285,979 4,239,551 — 35,179 176,695 5,323,315 Disposals — — (606,318) (1,577,888) (64,027) (47,185) (2,295,418) Effect of movements in exchange rates (4,760) (166,038) (19,148,313) (16) (146,417) (2,553) (19,468,097) Balance at June 30, 2025 $ 2,822,648 2,474,605 187,229,832 44,485,161 2,927,533 3,688,057 243,627,836 Depreciation and impairment loss: Balance at January 1, 2026 $ — 834,309 55,627,089 19,995,585 1,541,894 1,995,190 79,994,067 Depreciation — 32,633 4,474,274 1,720,958 171,449 141,935 6,541,249 Loss of impairment — — 70 — — — 70 Disposals — — (1,653,013) (937,779) (55,838) (3,807) (2,650,437) Effect of movements in exchange rates — 4,362 594,670 (2) 12,134 156 611,320 Balance at June 30, 2026 $ — 871,304 59,043,090 20,778,762 1,669,639 2,133,474 84,496,269 Balance at January 1, 2025 $ — 772,064 49,951,200 18,983,889 1,438,263 1,831,691 72,977,107 Depreciation — 29,159 4,006,817 1,520,790 150,277 100,487 5,807,530 Reclassification — 23,364 — — 15,242 — 38,606 Disposals — — (606,319) (1,297,587) (64,014) (44,912) (2,012,832) Effect of movements in exchange rates — (66,946) (4,265,018) (1) (78,569) (1,912) (4,412,446) Balance at June 30, 2025 $ — 757,641 49,086,680 19,207,091 1,461,199 1,885,354 72,397,965 Carrying amounts: Balance at January 1, 2026 $ 2,825,979 1,813,263 148,226,465 27,041,433 1,766,687 2,570,155 184,243,982 Balance at June 30, 2026 $ 2,826,507 2,037,182 160,508,853 27,916,244 1,784,355 2,608,235 197,681,376 Balance at January 1, 2025 $ 2,241,497 1,582,600 147,608,235 26,135,907 1,553,004 1,598,994 180,720,237 Balance at June 30, 2025 $ 2,822,648 1,716,964 138,143,152 25,278,070 1,466,334 1,802,703 171,229,871 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 0 ～
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1. Collateral As of June 30, 2026 , December 31, 2025 , and June 30, 2025 , the property, plant and equipment of the Group had been pledged as collateral for long-term borrowings and guaranteed financing; please refer to note (8). (j) Right-of-use assets The Group leases many assets including wharfs, buildings, containers, vessel equipment, and other equipment. Information about leases for which the Group as a lessee is presented below: Cost: Balance at January 1, 2026 $ 11,764,561 350,775 5,708,361 104,052 — 17,927,749 Additions — 3,589 1,604,995 2,905 — 1,611,489 Decreases — (42,576) — (12,131) — (54,707) Remeasurement 6,137 25,192 264,450 1,496 — 297,275 Effect of changes in foreign exchange rates (8,029) 6,409 93,332 484 — 92,196 Balance at June 30, 2026 $ 11,762,669 343,389 7,671,138 96,806 — 19,874,002 Balance at January 1, 2025 $ 11,720,890 361,794 4,290,931 85,374 8,886,925 25,345,914 Additions — 9,051 538,502 26,182 — 573,735 Decreases — (17,907) (154,811) (29,763) (5,491,326) (5,693,807) Remeasurement 36,807 4,181 (24,911) 8,478 — 24,555 Effect of changes in foreign exchange rates (23,503) (31,106) (478,910) (5,940) (512,164) (1,051,623) Balance at June 30, 2025 $ 11,734,194 326,013 4,170,801 84,331 2,883,435 19,198,774 Accumulated depreciation and impairment losses: Balance at January 1, 2026 $ 3,753,180 255,162 2,690,370 47,008 — 6,745,720 Depreciation 362,997 34,858 655,403 11,745 — 1,065,003 Decreases — (42,576) — (12,131) — (54,707) Effect of changes in foreign exchange rates (756) 4,545 41,591 186 — 45,566 Balance at June 30, 2026 $ 4,115,421 251,989 3,387,364 46,808 — 7,801,582 Balance at January 1, 2025 $ 3,032,323 202,511 2,079,741 57,353 7,493,574 12,865,502 Depreciation 358,486 35,788 549,329 10,855 747,321 1,701,779 Decreases — (15,896) (154,811) (29,162) (5,070,535) (5,270,404) Effect of changes in foreign exchange rates (4,864) (20,586) (248,532) (2,462) (456,055) (732,499) Balance at June 30, 2025 $ 3,385,945 201,817 2,225,727 36,584 2,714,305 8,564,378 Carrying amount: Balance at January 1, 2026 $ 8,011,381 95,613 3,017,991 57,044 — 11,182,029 Balance at June 30, 2026 $ 7,647,248 91,400 4,283,774 49,998 — 12,072,420 Balance at January 1, 2025 $ 8,688,567 159,283 2,211,190 28,021 1,393,351 12,480,412 Balance at June 30, 2025 $ 8,348,249 124,196 1,945,074 47,747 169,130 10,634,396 Wharfs Buildings Containers Other equipment Vessel equipment Total (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 1 ～
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(k) Investment property Investment property comprises office buildings that are leased to third parties under operating leases, including properties that are held as right-of-use assets, as well as properties that are owned by the Company. The leases of investment properties contain an initial non-cancellable lease term of 2 to 10 years. Some leases provide the lessees with options to extend at the end of the term. For all investment property leases, the rental income is fixed under the contracts. Information about investment property of the Group is presented below: Owned Property Land and improvements Buildings Total Cost: Balance at January 1, 2026 $ 2,393,764 631,678 3,025,442 Purchases — 123 123 Effect of changes in foreign exchange rates 1,943 2,903 4,846 Balance at June 30, 2026 $ 2,395,707 634,704 3,030,411 Balance at January 1, 2025 $ 2,985,676 963,261 3,948,937 Reclassification to property, plant and equipment (585,911) (323,853) (909,764) Effect of changes in foreign exchange rates (16,499) (26,350) (42,849) Balance at June 30, 2025 $ 2,383,266 613,058 2,996,324 Accumulated depreciation and impairment losses: Balance at January 1, 2026 $ — 166,738 166,738 Depreciation — 12,966 12,966 Effect of changes in foreign exchange rates — 702 702 Balance at June 30, 2026 $ — 180,406 180,406 Balance at January 1, 2025 $ — 181,336 181,336 Depreciation — 12,951 12,951 Reclassification to property, plant and equipment — (38,606) (38,606) Effect of changes in foreign exchange rates — (5,253) (5,253) Balance at June 30, 2025 $ — 150,428 150,428 Carrying amount: Balance at January 1, 2026 $ 2,393,764 464,940 2,858,704 Balance at June 30, 2026 $ 2,395,707 454,298 2,850,005 Balance at January 1, 2025 $ 2,985,676 781,925 3,767,601 Balance at June 30, 2025 $ 2,383,266 462,630 2,845,896 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 2 ～
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As of June 30, 2026 , December 31, 2025 , and June 30, 2025 , the investment properties of the Group had been pledged as collateral for long-term borrowings and guaranteed financing; please refer to note (8). There was no significant difference between the fair value of investment property and the related disclosure in note (6)(l) of the 2025 annual consolidated financial statements. (l) Intangible assets Computer software Trademarks Total Carrying amounts: Balance at January 1, 2026 $ 145,611 1,184 146,795 Balance at June 30, 2026 $ 109,771 1,209 110,980 Balance at January 1, 2025 $ 141,360 1,290 142,650 Balance at June 30, 2025 $ 145,325 1,092 146,417 There were no significant additions, disposal, or recognition and reversal of impairment losses of intangible assets for the six months ended June 30, 2026 and 2025. Information on amortization for the period is revealed in note (12). Please refer to note (6)(m) of the 2025 annual consolidated financial statements for other related information. (m) Short-term borrowings The borrowings were summarized as follows: 2026.6.30 2025.12.31 2025.6.30 Unsecured bank loans $ 518,000 40,000 400,000 Commercial paper payable — — 8,700,000 Less: Discount on commercial paper payable — — (5,921) Total $ 518,000 40,000 9,094,079 Unused short-term credit lines $ 32,359,919 32,851,273 23,434,920 Range of interest rates 1.70%~1.99% 1.99%~2.00% 1.52%~1.75% 1. Issuance and repayment of short-term borrowings For the six months ended June 30, 2026 and 2025, the proceeds from short-term borrowings amounted to $2,568,000 thousand and $ 22,850,000 thousand, respectively, and the repayments amounted to $2,090,000 thousand and $13,750,000 thousand, respectively. 2. Collateral for bank loan There were no assets pledged as collateral for the short-term borrowing of the Group. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 3 ～
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(n) Long-term borrowings The details of long-term borrowings were as follows: Unsecured bank loans-TWD 2027/07/21 ~ 2032/03/19 $ 20,273,041 21,539,412 20,514,882 Secured bank loans-USD 2034/10/31 ~ 2035/04/30 10,367,057 10,796,709 10,591,761 Secured bank loans-TWD 2029/05/14 ~ 2042/06/24 5,866,097 6,129,542 6,392,987 Secured bank loans-JPY 2033/04/28 ~ 2036/08/31 10,841,762 12,355,443 11,516,270 Commercial paper — 2,000,000 2,000,000 Less: Discount on commercial paper — (87) — Current portion (7,048,393) (6,762,145) (11,043,538) Total $ 40,299,564 46,058,874 39,972,362 Unused long-term credit lines $ 25,312,286 29,293,091 31,537,296 Range of interest rates 0.88%~4.54% 0.88%~5.14% 0.88%~5.14% Expiration date 2026.6.30 2025.12.31 2025.6.30 For information on the Group’s interest risk, currency risk and liquidity risk, please refer to note (6)(aa). 1. Issuance and repayment of long-term borrowings For the six months ended June 30, 2026 and 2025, the proceeds from long-term borrowings amounted to $3,280,000 thousand and $ 7,899,060 thousand, respectively, and the repayment amounted to $8,722,936 thousand and $21,729,868 thousand, respectively. 2. Collateral for long-term borrowings For the collateral for long-term borrowings, please refer to note (8). 3. Financial ratio covenant The Company and its subsidiary, WAN HAI LINES (SINGAPORE) PTE LTD, entered into credit agreements with different financial institutions, under which, the Group shall maintain certain net worth ratios and debt service ratios on its annual and semi-annual balance sheet dates in the consolidated financial statements during the term of the loans. Otherwise, the loan will be repayable according to the agreements. As of June 30, 2026, there was no breach of the contract committed by the Group. The Company entered into syndicated credit agreements with financial institutions, under which, the Group shall maintain certain current ratios and net debt to equity ratios on the balance sheet date in the annual consolidated financial statements during the term of the loans. If there is violation of the terms of the contract, the Company should make improvements within a time limit, otherwise, the Company shall pay additional interest based on the original agreed interest rate. 4. Government low-interest loan As for June 30, 2026, December 31, 2025, and June 30, 2025, the Group obtained a bank project low-interest loan of $9,000,000 thousand in accordance with the “Guidelines of Project Loans for Accelerated Investment by Domestic Corporations”, wherein the difference between the amount of $4,560,000 thousand, $3,950,000 thousand and $3,950,000 thousand respectively, have been (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 4 ～
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used, recognized and measured based on the market interest rate, and the actual discount rate, was deemed as government grant and recognized as deferred revenue; please refer to note (6)(q). (o) Bonds payable Currency Interest rate collars Expiration 2026.6.30 2025.12.31 2025.6.30 Unsecured bond-2019 second domestic bond TWD 1.07% 2026/10/07 $ 2,000,000 2,000,000 2,000,000 Unsecured bond-2020 first domestic bond TWD 0.97% 2025/10/23 — — 2,500,000 Total $ 2,000,000 2,000,000 4,500,000 Current $ 2,000,000 2,000,000 2,500,000 Non-current — — 2,000,000 Total $ 2,000,000 2,000,000 4,500,000 1. Unsecured bond-2019 second domestic bond issue The Company issued an unsecured corporate bond in October 2019. It was the Company’s second domestic bond issue in 2019 and was effective upon submission to the regulatory authority on September 27, 2019. The issuance terms were as follows: 1) Issue amount TWD 3,200,000 thousand. There are two series of bonds categorized by the terms, with series A amounting to TWD 1,200,000 thousand and series B amounting to TWD 2,000,000 thousand. 2) Nominal amount Par value TWD 1,000 thousand per unit. 3) Issuance period The issuance dates are October 7, 2019; the maturity periods for series A and B are five and seven years, respectively. 4) Issued price: at par value 5) Nominal interest rate 1) Series A: 0.97% 2) Series B: 1.07% 6) Payment of interest: The interest is paid once a year by simple interest and is rounded to the closest digit. Interest payment is postponed to the following business day if the repayment date is on a non-business day, excluding additional interest. There is no additional interest for the period after the maturity date if the bondholders apply for repayment after that date. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 5 ～
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7) Redemption on the maturity date The ordinary bonds will be redeemed at par on the maturity date. 8) Bond form: No physical bonds were released; the bonds were registered with TDCC. 9) Trustee The trustee is Taipei Fubon Commercial Bank Co., Ltd., which represents the bondholders’ interest and executes the responsibility of monitoring the duties of the Company under the contractual agreement. Holders of the bonds agree with the rights and responsibilities represented by the trustee, regardless of the date of acquiring the Company’s bonds. Bondholders can review the content of the representation agreement during the office hours of the trustee. 10) Agency for payment of principal and interest Taipei Fubon Commercial Bank Co., Ltd., Shimao Branch is assigned for handling payments of the principal and interest according to the bondholder list provided by TDCC. 11) Underwriter: Master Link Securities Corporation is the primary under writer. 12) Announcement The related information can be acquired from the Market Observation Post System. 2. Unsecured bond-2020 first domestic bond issue The Company issued an unsecured corporate bond in October 2020. It was the Company’s first domestic bond issue in 2020 and was effective upon submission to the regulatory authority on October 15, 2020. The issuance terms were as follows: 1) Issue amount TWD 2,500,000 thousand. 2) Nominal amount Par value TWD 1,000 thousand per unit. 3) Issuance period The issuance date is October 23, 2020; the maturity date is October 23, 2025; the maturity period is five years. 4) Issued price: at par value 5) Nominal interest rate: 0.97% 6) Payment of interest: The interest is paid once a year by simple interest and is rounded to the closest digit. Interest payment is postponed to the following business day if the repayment date is on a non-business day, excluding additional interest. There is no additional interest for the period after the maturity date if the bond holders apply for repayment after that date. 7) Redemption on the maturity date The ordinary bonds will be redeemed at par on the maturity date. 8) Bond form: No physical bonds were released; the bonds were registered with TDCC. 9) Trustee (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 6 ～
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The trustee is Taipei Fubon Commercial Bank Co., Ltd., which represents the bondholders’ interest and executes the responsibility of monitoring the duties of the Company under the contractual agreement. Holders of the bonds agree with the rights and responsibilities represented by the trustee, regardless of the date of acquiring the Company’s bonds. Bondholders can review the content of the representation agreement during the office hours of the trustee. 10) Agency for payment of principal and interest Taipei Fubon Commercial Bank Co., Ltd., Shimao Branch is assigned for handling payments of the principal and interest according to the bondholder list provided by TDCC. 11) Underwriter: MasterLink Securities Corporation is the primary underwriter. 12) Announcement The related information can be acquired from the Market Observation Post System. (p) Lease liabilities The amounts of lease liabilities were as follows: 2026.6.30 2025.12.31 2025.6.30 Current $ 2,386,820 2,079,374 1,715,156 Non-current $ 10,766,014 10,045,087 9,531,662 Please refer to note (6)(aa) for the analyses of the due date. As of June 30, 2026, December 31, 2025, and June 30, 2025, the Group’s lease liabilities recognized as current financial liabilities for hedging were $145,540 thousand, $145,742 thousand and $147,581 thousand; non-current financial liabilities for hedging were $107,433 thousand, $ 178,493 thousand and $251,901 thousand; current lease liabilities were $2,241,280 thousand, $1,933,632 thousand and $1,567,575 thousand; non-current lease liabilities were $10,658,581 thousand, $ 9,866,594 thousand and $9,279,761 thousand, respectively. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 7 ～
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The amounts recognized in profit or loss were as follows: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Interest on lease liabilities $ 110,195 98,999 212,668 203,533 Variable lease payments not included in the measurement of lease liabilities $ 8,471 33,558 20,476 47,452 Expenses relating to short-term leases $ 13,667 570 28,390 15,179 Expenses relating to leases of low-value, excluding short-term leases of low-value assets $ 122,429 67,577 258,009 242,440 The amounts recognized in statement of cash flow were as follows: For the six months ended June 30, 2026 2025 Total cash outflow for leases $ 1,440,721 1,822,656 1. Wharf, and container leases The Group leases wharfs and containers for its operating needs. The leases of wharfs typically run for a period of 1 to 30 years, and of containers for 1 to 8 years. Some payments for wharf leases depend on the variation of loading capacity, in addition, the Group has decided to apply recognition exemptions to some containers and not to recognize right- of-use assets and lease liabilities for short-term leases or leases of low-value assets. 2. Building leases The Group leases buildings for its office space. The leases of office space typically run for a period for 1 to 19 years. Some leases depend on the fluctuations of local consumer price index; others are not recognized as right-of-use assets and lease liabilities, because the Group has decided to apply recognition exemptions for short-term leases or leases of low-value asset; yet other leases include an option to renew the lease for an additional period of the same duration after the end of the contract term. 3. Other leases The Group leases machinery or equipment for its operating needs, usually for a period of 1 to 15 years. Some leases are typically short-term or low-value assets that the Group has decided to apply recognition exemptions, and not to recognize right-of-use assets and lease liabilities. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 8 ～
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(q) Long term deferred revenue 2026.6.30 2025.12.31 2025.6.30 Non-current $ 51,574 47,136 47,136 Deferred revenue-Government grants $ 51,574 47,136 47,136 As of June 30, 2026 , December 31, 2025 , and June 30, 2025 , t he Group obtained a government preferential interest rate loan of $4,560,000 thousand, $ 3,950,000 thousand, and $ 3,950,000 thousand, respectively, from the “Guidelines of Project Loans for Accelerated Investment by Domestic Corporations”. At the time of the borrowing, the fair value of $ 4,508,426 thousand, $3,902,864 thousand, and $ 3,902,864 thousand, respectively, was estimated based on the market interest rate. The difference between the amount obtained and the fair value of the loan was $ 51,574 thousand, $47,136 thousand, and $47,136 thousand, respectively, which was deemed as government grant and recognized as deferred income. As of June 30, 2026 , since the Group have yet to obtain the relevant assets, the above difference of $51,574 thousand was not recognized as grant revenue. If the Group failed to comply with the regulations according to the “Guidelines of Project Loans for Accelerated Investment by Domestic Corporations”, the National Development Fund will cease to allocate the loan commission fees to the Group, who, thereafter, shall pay the original agreed interest rate, plus annual interest rate. (r) Employee benefits 1. Defined benefit plans The Group believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2025 and 2024. The Group’s pension expenses recognized in profit or loss for the three months and six months ended June 30, 2026 and 2025, were $21,951 thousand, $19,671 thousand, $43,905 thousand and $40,006 thousand, respectively. The pension expenses are included in operating expenses and operating costs. 2. Defined contribution plans The Group’s expen ses for the pension plan contributions to the Bureau of Labor Insurance amounted to $38,995 thousand, $33,490 thousand, $78,658 thousand and $ 71,005 thousand for the three months and six months ended June 30, 2026 and 2025, respectively. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 2 9 ～
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(s) Income taxes 1. Income tax expense The amount of income tax was as follows: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Current income tax expense: Current period $ 4,136,052 502,235 6,249,072 2,976,081 Adjustment for prior periods 434,850 (490,019) 434,850 (604,472) Income tax expense $ 4,570,902 12,216 6,683,922 2,371,609 For the six months ended June 30, 2026 and 2025, no income taxes were recognized in equity and other comprehensive income. 2. Examination and Approval The Company’s income tax returns through 2022 were examined and approved by the tax authority. 3. Global minimum tax The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. The Company’s subsidiaries and sub-subsidiaries are located in Korea, Japan, Singapore, Hong Kong, Malaysia, Thailand and Vietnam, where the Pillar Two tax legislation has been legislated to be effective. As of June 30, 2026 , the Group has recognized the above related income tax expense. (t) Capital and other equity Except for the following disclosure, there was no significant change in capital and other equity for the periods from January 1 to June 30, 2026 and 2025. For the related information, please refer to note (6)(u) to the consolidated financial statements for the year ended December 31, 2025. 1. Retained earnings The industry of the Group is highly changeable and capital intensive. The Group is in the stable growing stage. Therefore, in consideration of the future capital needs of long-term financial plans, and to meet the cash flow needs of the shareholders, the Group’s articles of incorporation require that after-tax earnings shall first be offset against any deficit, and 10% of the remaining balance, plus the balance of items exclusive of after-tax net profit included in unappropriated retained earnings, shall be set aside as legal reserve, and special reserves are to be provided according to the regulations. If there is a requirement for the expansion of transportation equipment and an improvement of the financial structure, the Group may set aside a special reserve. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 0 ～
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If there is still a remaining balance, the Group shall allocate upward of 10% of it, and is allowed to combine with the beginning unappropriated retained earnings, through the Board of Directors to take the Group’s capital needs, capital budgets and other factors into account, and also to give consideration to the interests of shareholders and the Group’s long-term financial planning, submits the dividend and bonus distribution proposal to be approved by shareholders’ meeting, then the amount will be distributed. An equal portion of the cumulative changes in the net deduction of other shareholder’s equity shall be allocated as special reserve from the undistributed prior period earning. If the special reserve is still insufficient, a portion of the after tax net profit in the period, plus items other than after tax net profit in the period, that are included in the undistributed current period earning, will be allocated as special reserve. The distribution ration of stock dividends or cash dividends must be done in accordance with the current year’s actual profit, capital position, and capital expansion program. The proportion of cash dividends may not be lower than 10% of the total dividends. 2. Earnings distribution The amounts of cash dividends for the 2025 earnings distribution had been approved and proposed, respectively, at the shareholders’ meeting held on May 28, 2026; while the 2024 earnings distribution had been approved during the shareholders’ meeting on May 29, 2025 as follows: 2025 2024 Amount per share Total amount Amount per share Total amount Dividends distributed to ordinary shareholders: Cash $ 3.00 8,418,439 3.50 9,821,512 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 1 ～
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3. Other equity (net after tax) Balance at January 1, 2026 $ 12,854,038 1,475,934 33,509 429,951 Net profit (loss) — — — 11,954 Exchange differences on foreign operations 3,147,392 — — (9,217) Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income — (635,717) — — Cumulative gains (losses) reclassified to profit or loss on disposal of investments in debt instrument at fair value through other comprehensive income — (1,225) — — Gains (losses) from changes in the fair value of the hedging instrument: -Exchange rate risk for anticipated transactions — — 6,247 — Gains (losses) from changes in fair value of the hedging instrument that will be reclassified to profit or loss: -Exchange rate risk for anticipated transactions — — (34,180) — Cash dividends from subsidiaries paid to non- controlling interest — — — (24,514) Balance at June 30, 2026 $ 16,001,430 838,992 5,576 408,174 Balance at January 1, 2025 $ 21,400,910 571,907 2,362 411,651 Net profit (loss) — — — 15,379 Exchange differences on foreign operations (23,531,680) — — (16,042) Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income — 837,270 — — Cumulative gains (losses) reclassified to profit or loss on disposal of investments in debt instrument at fair value through other comprehensive income — (2,180) — — Gains (losses) from changes in the fair value of the hedging instrument: -Exchange rate risk for anticipated transactions — — 13,382 — Gains (losses) from changes in fair value of the hedging instrument that will be reclassified to profit or loss: -Exchange rate risk for anticipated transactions — — 20,050 — Cash dividends from subsidiaries paid to non- controlling interest — — — (13,938) Balance at June 30, 2025 $ (2,130,770) 1,406,997 35,794 397,050 Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Gains (losses) on hedging instrument NCI (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 2 ～
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(u) Earnings per share The calculation of basic earnings per share and diluted earnings per share were as follows: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Basic earnings per share Profit attributable to common shareholders $ 11,534,619 1,076,892 19,206,137 9,808,823 Weighted-average number of common shares (in thousand) 2,806,146 2,806,146 2,806,146 2,806,146 Basic earnings per share (In Dollars of New Taiwan Dollars) $ 4.11 0.38 6.84 3.50 Diluted earnings per share Profit attributable to common shareholders (diluted) $ 11,534,619 1,076,892 19,206,137 9,808,823 Weighted-average number of common shares (Basic) (in thousand) 2,806,146 2,806,146 2,806,146 2,806,146 Effects of employee stock compensation 1,963 808 2,985 2,480 Weighted-average number of common shares (adjusted for the effects of all dilutive potential common shares) 2,808,109 2,806,954 2,809,131 2,808,626 Diluted earnings per share (In Dollars of New Taiwan Dollars) $ 4.11 0.38 6.84 3.49 (v) Revenue from contracts with customers 1. Disaggregation of revenue For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Primary geographical markets: Asia $ 12,604,622 12,686,936 25,105,567 26,885,062 the Middle East, India, Red Sea, East MED 14,092,686 8,650,089 24,753,476 17,748,314 United States, South America 16,203,190 13,515,682 26,682,319 27,309,525 $ 42,900,498 34,852,707 76,541,362 71,942,901 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 3 ～
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Main service line: Freight $ 42,332,058 34,395,151 75,489,419 70,811,914 Rentals 4,663 6,503 10,603 12,795 WHL terminal 358,502 325,398 665,061 643,354 Other service 205,275 125,655 376,279 474,838 $ 42,900,498 34,852,707 76,541,362 71,942,901 For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 2. Contract balances 2026.6.30 2025.12.31 2025.6.30 Notes receivable $ 42,138 35,845 56,763 Accounts receivable 4,885,759 3,129,531 3,493,296 Less: allowance for doubtful receivables (1,683) (1,683) (1,683) Total $ 4,926,214 3,163,693 3,548,376 Contract assets $ 2,390,866 1,837,024 1,976,768 Contract liabilities (recognized as other current liabilities) $ 1,047,548 708,144 955,974 For details on accounts receivable and allowance for impairment, please refer to note (6)(f). The amounts of revenue recognized for the three months and six months ended June 30, 2026 and 2025 that were included in the contract liability balance at the beginning of the periods were $73 thousand, $8,640 thousand, $639,714 thousand and $570,890 thousand, respectively. The major change in the balance of contract assets and contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received. (w) Remuneration of employees and directors On May 29, 2025, the Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Company Article of Incorporation, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 1% of the remaining net profit shall be allocated as directors’ remuneration, and not less than 0.6% as employee remuneration, including a minimum of 0.3% to those base-level employees. Prior to the amendment, the Articles of Incorporation stipulated that, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 1% of the remaining net profit shall be allocated as directors’ remuneration, and a minimum of 0.6% as employee remuneration. For the three months and six months ended June 30, 2026 and 2025, the estimate of the remunerations to employees was $96,883 thousand, $5,496 thousand, $155,477 thousand and (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 4 ～
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$71,934 thousand, respectively; the estimate of the remunerations to directors were $161,471 thousand, $9,160 thousand, $259,128 thousand and $119,890 thousand, respectively. These amounts were calculated using the Company’s pre-tax income for each period before deducting the remunerations of employees and directors, multiplied by the proposed percentages of remunerations of employees and directors as stated in the Company’s Articles of Incorporation. These remunerations were expensed under operating costs or expenses for each period. If there are any subsequent adjustments to the actual remuneration amounts after the annual shareholders’ meeting, the adjustments will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year. For the years ended December 31, 2025 and 2024, the Company set aside $217,247 thousand, $371,646 thousand, respectively, for employee remuneration, and $90,519 thousand, $99,106 thousand, respectively, for director remuneration. These amounts were consistent with the actual distributions. Related information would be available on the Market Observation Post System website. (x) Other gain and losses For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Net gains on disposals of containers and others $ 105,683 241,786 180,063 397,451 (y) Non-operating income and expenses 1. Interest income The details of interest income were as follows: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Interest income from bank deposits (recognized as cash and cash equivalents and current financial assets at amortized cost) $ 886,604 1,329,164 1,765,866 2,736,622 Interest income from financial assets measured at fair value through other comprehensive income 379,336 261,689 729,277 543,030 Other interest income 9 (8) 79 344 $ 1,265,949 1,590,845 2,495,222 3,279,996 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 5 ～
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2. Other revenue The details of other revenue were as follows: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Dividend revenue $ 99,084 89,054 107,946 95,476 Other revenue — — 3 1,500 $ 99,084 89,054 107,949 96,976 3. Other gains and losses The details of other gains and losses were as follows: Foreign exchange (losses) gains $ (171,177) (9,437,796) 665,535 (8,383,963) Impairment losses on non-financial assets — — (70) — Gain on financial assets at fair value through profit or loss 3,969,179 587,118 5,970,888 42,127 Gain on disposal of investments in debt instrument at fair value through other comprehensive income 385 406 1,225 2,180 Other gains (losses) 35,019 (82,737) 154,449 (52,646) $ 3,833,406 (8,933,009) 6,792,027 (8,392,302) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 4. Finance costs The details of finance costs were as follows: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Interest expense: Bank loans $ 286,433 312,001 583,247 666,121 Bonds payable 5,335 11,382 10,612 22,638 Commercial paper — 52,548 1,277 98,238 Lease liabilities 110,195 98,999 212,668 203,533 $ 401,963 474,930 807,804 990,530 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 6 ～
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(z) R e c l a s s i f i c a t i o n a d j u s t m e n t s o f c o m p o n e n t s o f o t h e r c o m p r e h e n s i v e i n c o m e The details of reclassification of adjustments of components of other comprehensive income for the six months ended June 30, 2026 and 2025 were as follows: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Debt instruments at fair value through other comprehensive income Net change in fair value $ (139,151) 144,127 (553,637) 399,545 Net change in fair value reclassified to profit and loss (385) (406) (1,225) (2,180) Net change in fair value recognized in other comprehensive income $ (139,536) 143,721 (554,862) 397,365 (aa) Financial instruments Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to note (6)(ab) of the consolidated financial statements for the year ended December 31, 2025. 1. Credit risks 1) Credit risks exposure The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk. 2) Concentration of credit risk Since the Group has considerable customers worldwide and does not concentrate its transactions significantly with any single customer or in similar areas, the Group has no concentration of credit risk. The Group mitigates the credit risks by continuously monitoring customers’ credit risk and credit ratings, however, the Group’s policy usually does not require the customers to provide collateral. 3) Credit risk of receivables and debt securities For credit risk exposure of note and trade receivables, please refer to note (6)(f). Other financial assets at amortized cost includes other receivables, receivables from agents and time deposits etc. Debt investments at fair value through other comprehensive income include government bonds, listed and unlisted debt securities. All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses. Regarding how the financial instruments are considered to have low credit risk, please refer to note (4)(g) of the consolidated financial statements for the year ended December 31, 2025 . There are no significant expected losses on other receivables, debt investments measured at fair value (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 7 ～
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through other comprehensive income and the financial assets at amortized cost by assessment. Therefore, the Group did not recognize allowance loss. 2. Liquidity risks The following are the contractual maturities of financial liabilities of the Group, including estimated interest payments and excluding the impact of netting arrangements: Carrying amount Contractual cash flows Less than 6 months 6 to 12 months 1 to 2 years 2 to 5 years More than 5 years June 30, 2026 Non-derivative financial liabilities Short-term unsecured bank loans $ 518,000 519,667 519,667 — — — — Secured bank loans 27,074,916 30,574,700 3,950,111 1,721,365 3,391,064 9,551,828 11,960,332 Unsecured bank loans 20,273,041 21,020,026 909,131 1,521,587 8,964,698 9,553,513 71,097 Account payables (including related parties) 14,866,420 14,866,420 14,866,420 — — — — Other payables 13,054,238 13,054,238 13,054,238 — — — — Payables to agents 192,266 192,266 192,266 — — — — Bonds payable 2,000,000 2,021,400 2,021,400 — — — — Lease liabilities (partial recognized as financial liabilities for hedging) 13,152,834 16,809,446 1,295,097 1,136,337 1,870,232 3,386,274 9,121,506 Guarantee deposits received (recognized as other current liabilities and non-current guarantee deposits received) 2,073,570 2,073,570 2,073,570 — — — — $ 93,205,285 101,131,733 38,881,900 4,379,289 14,225,994 22,491,615 21,152,935 December 31, 2025 Non-derivative financial liabilities Short-term unsecured bank loans $ 40,000 40,133 40,133 — — — — Secured bank loans 29,281,694 33,393,606 1,815,441 1,849,662 3,734,035 10,878,985 15,115,483 Unsecured bank loans 21,539,412 22,344,509 2,938,505 1,296,256 9,296,838 8,316,966 495,945 Commercial paper 1,999,913 2,034,650 16,305 15,542 2,002,803 — — Account payables (including related parties) 12,751,202 12,751,202 12,751,202 — — — — Other payables 4,898,683 4,898,683 4,898,683 — — — — Payables to agents 103,337 103,337 103,337 — — — — Bonds payable 2,000,000 2,021,400 — 2,021,400 — — — Lease liabilities (partial recognized as financial liabilities for hedging) 12,124,461 15,670,427 1,161,202 961,378 1,762,504 2,898,934 8,886,409 Guarantee deposits received (recognized as other current liabilities and non-current guarantee deposits received) 1,871,376 1,871,376 1,871,376 — — — — $ 86,610,078 95,129,323 25,596,184 6,144,238 16,796,180 22,094,885 24,497,837 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 8 ～
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Carrying amount Contractual cash flows Less than 6 months 6 to 12 months 1 to 2 years 2 to 5 years More than 5 years June 30, 2025 Non-derivative financial liabilities Short-term unsecured bank loans $ 400,000 400,575 400,575 — — — — Secured bank loans 28,501,018 32,661,443 1,744,708 1,763,892 3,576,792 10,204,226 15,371,825 Unsecured bank loans 20,514,882 21,237,167 4,750,870 3,870,408 4,104,212 7,515,990 995,687 Commercial paper 10,694,079 10,754,402 8,722,369 14,760 2,017,273 — — Account payables (including related parties) 11,097,048 11,097,048 11,097,048 — — — — Other payables 14,218,945 14,218,945 14,218,945 — — — — Payables to agents 122,179 122,179 122,179 — — — — Bonds payable 4,500,000 4,567,050 2,545,650 — 2,021,400 — — Lease liabilities (partial recognized as financial liabilities for hedging) 11,246,818 14,809,058 970,197 779,538 1,392,309 2,548,576 9,118,438 Guarantee deposits received (recognized as other current liabilities and non-current guarantee deposits received) 1,617,793 1,617,793 1,617,793 — — — — $ 102,912,762 111,485,660 46,190,334 6,428,598 13,111,986 20,268,792 25,485,950 The Group did not expect that the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 3 9 ～
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3. Market risk 1) Currency risk The Group’s significant exposure to foreign currency risks was as follows: 2026.6.30 Functional currency Exchange rate Foreign currency Foreign currency (in thousands) Carrying amount (in thousands of TWD) Financial assets Monetary items TWD 31.85 USD $ 1,210,574 38,556,794 CNY 6.78 USD 139,439 4,441,124 HKD 7.84 USD 99,011 3,153,516 TWD 0.20 JPY 35,078,288 6,885,089 USD 0.01 JPY 14,111,001 2,769,676 TWD 4.69 CNY 573,789 2,693,589 HKD 1.16 CNY 1,071,525 5,030,154 TWD 0.34 INR 1,699,720 571,840 TWD 0.96 THB 251,165 240,807 TWD 0.52 PHP 507,769 263,438 Non monetary items USD 0.00004 VND 542,430,000 653,767 Financial liabilities Monetary items TWD 0.20 JPY 15,382,004 3,019,146 USD 0.01 JPY 44,034,862 8,643,066 TWD 31.85 USD 205,629 6,549,297 CNY 6.78 USD 95,863 3,053,231 HKD 7.84 USD 27,769 884,457 TWD 4.69 CNY 225,890 1,060,417 HKD 1.16 CNY 1,096,916 5,149,346 TWD 4.06 HKD 171,085 694,810 USD 0.77 SGD 18,676 459,497 TWD 7.81 MYR 49,355 385,661 TWD 0.34 INR 997,710 335,661 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 0 ～
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2025.12.31 Functional currency Exchange rate Foreign currency Foreign currency (in thousands) Carrying amount (in thousands of TWD) Financial assets Monetary items TWD 31.43 USD $ 1,308,725 41,133,221 CNY 6.99 USD 69,551 2,185,977 HKD 7.78 USD 53,511 1,681,849 TWD 4.49 CNY 375,032 1,685,577 HKD 1.11 CNY 584,535 2,627,188 TWD 0.20 JPY 36,089,009 7,244,077 USD 0.01 JPY 16,960,974 3,404,543 TWD 0.35 INR 921,090 322,023 Non monetary items USD 0.00004 VND 662,970,000 792,227 Financial liabilities Monetary items TWD 31.43 USD 124,336 3,907,889 CNY 6.99 USD 35,879 1,127,675 HKD 7.78 USD 14,830 466,096 TWD 0.20 JPY 19,772,375 3,968,871 USD 0.01 JPY 46,548,684 9,343,627 TWD 4.49 CNY 226,842 1,019,538 HKD 1.11 CNY 505,179 2,270,525 TWD 4.04 HKD 178,965 722,636 USD 0.78 SGD 21,712 530,559 TWD 7.74 MYR 51,922 401,846 TWD 0.35 INR 927,948 324,421 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 1 ～
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2025.6.30 Functional currency Exchange rate Foreign currency Foreign currency (in thousands) Carrying amount (in thousands of TWD) Financial assets Monetary items TWD 29.30 USD $ 2,281,689 66,853,496 CNY 7.17 USD 69,973 2,050,202 HKD 7.85 USD 59,946 1,756,424 MXN 18.84 USD 6,948 203,568 TWD 0.20 JPY 26,057,474 5,296,455 USD 0.01 JPY 19,843,114 4,033,321 TWD 4.09 CNY 354,063 1,447,758 HKD 1.10 CNY 649,452 2,655,597 TWD 0.34 INR 649,134 222,140 Non monetary items USD 0.00004 VND 630,826,000 708,304 Financial liabilities Monetary items TWD 0.20 JPY 12,216,584 2,483,149 USD 0.01 JPY 49,052,691 9,970,474 TWD 29.30 USD 175,140 5,131,610 CNY 7.17 USD 44,158 1,293,837 HKD 7.85 USD 13,068 382,885 TWD 4.09 CNY 190,237 777,874 HKD 1.10 CNY 594,973 2,432,832 TWD 3.73 HKD 157,479 587,786 USD 0.78 SGD 18,934 435,313 2) Sensitivity analysis The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade and other receivables, payables to agents, financial assets at fair value through profit or loss, loans and borrowings; and trade and other payables that are denominated in foreign currency. A strengthening (weakening) of 1% of the TWD against the USD, HKD and JPY etc. as at June 30, 2026 and 2025, would have increased (decreased) the net profit before tax by $348,392 thousand and $ 613,489 thousand, respectively; the cash flow hedge would have increased (decreased) the equity by $2,530 thousand and $ 3,995 thousand, respectively. This analysis assumes that all other variables remain constant, and is performed on the same basis for the six months ended June 30, 2026 and 2025. 3) Foreign Exchange Gain or Loss on Monetary Items Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the three months and six (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 2 ～
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months ended June 30, 2026 and 2025, the foreign exchange gain (loss) (including realized and unrealized portions) amounted to loss $ 171,177 thousand, loss $9,437,796 thousand, gain $665,535 thousand, and loss $8,383,963 thousand, respectively. 4. Interest rate analysis Please refer to the notes on liquidity risk management and the Group’s interest rate exposure to its financial assets and liabilities. The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding liabilities with variable interest rates, the analysis is based on the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the Group management’s assessment of the reasonably possible interest rate change. If the interest rate had increased or decreased by 1%, the Group’s net profit before tax would have increased or decreased by $340,394 thousand and $ 448,495 thousand, respectively, for the six months ended June 30, 2026 and 2025 with all other variable factors remaining constant. This is mainly due to the Group’s borrowings at variable rates. 5. Other market price risk The sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the comprehensive income as illustrated below: For the six months ended June 30, 2026 2025 Prices of securities at the reporting date Other comprehensive income after tax Net income (loss) Other comprehensive income after tax Net income (loss) Increasing 1% $ 50,710 135,503 50,243 67,444 Decreasing 1% (50,710) (135,503) (50,243) (67,444) 6. Fair value information 1) The Categories and Fair Values of Financial Instruments The Group assesses its financial instruments at fair value through profit or loss and financial assets at fair value through other comprehensive income on a recurring basis by using the fair value method. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liability, disclosure of fair value information is not required: (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 3 ～
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Financial assets at fair value though profit or loss Non-derivative financial assets mandatorily measured at fair v a l u e t h r o u g h p r o f i t o r l o s s － domestic listed stocks $ 16,937,924 16,937,924 — — 16,937,924 Subtotal 16,937,924 16,937,924 — — 16,937,924 Financial assets at fair value through other comprehensive income Domestic listed stocks 4,417,213 4,417,213 — — 4,417,213 Foreign listed stocks 653,767 653,767 — — 653,767 Unquoted equity instrument measured at fair value 589,805 — — 589,805 589,805 Corporate bonds 30,825,558 — 30,825,558 — 30,825,558 Subtotal 36,486,343 5,070,980 30,825,558 589,805 36,486,343 Financial assets at amortized cost Cash and cash equivalents 100,813,154 — — — — Current financial assets at amortized cost 11,827,479 — — — — Notes receivable 42,138 — — — — Accounts receivable 4,884,076 — — — — Other receivables 3,963,283 — — — — Receivables from agents 649,485 — — — — Guarantee deposits paid (recognized as other current assets and other non-current assets) 443,090 — — — — Subtotal 122,622,705 — — — — Total $ 176,046,972 22,008,904 30,825,558 589,805 53,424,267 Financial liabilities measured at amortized cost Short-term borrowings $ 518,000 — — — — Accounts payable 14,866,420 — — — — Other payables 13,054,238 — — — — Lease liabilities (including financial liabilities for hedging) 13,152,834 — — — — Payables to agents 192,266 — — — — Bonds payable (including current portion) 2,000,000 — — — — Long-term borrowings (including current portion) 47,347,957 — — — — Guarantee deposits received (recognized as other current liabilities and other non- current guarantee deposits received) 2,073,570 — — — — T o t a l $ 93,205,285 — — — — June 30, 2026 Fair value Book value Level 1 Level 2 Level 3 Total (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 4 ～
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Financial assets at fair value though profit or loss Non-derivative financial assets mandatorily measured at fair v a l u e t h r o u g h p r o f i t o r l o s s － domestic listed stocks $ 11,003,003 11,003,003 — — 11,003,003 Subtotal 11,003,003 11,003,003 — — 11,003,003 Financial assets at fair value through other comprehensive income Domestic listed stocks 4,168,634 4,168,634 — — 4,168,634 Foreign listed stocks 792,227 792,227 — — 792,227 Unquoted equity instrument measured at fair value 752,810 — — 752,810 752,810 Corporate bonds 28,539,923 — 28,539,923 — 28,539,923 Subtotal 34,253,594 4,960,861 28,539,923 752,810 34,253,594 Financial assets at amortized cost Cash and cash equivalents 109,494,384 — — — — Current financial assets at amortized cost 7,904,352 — — — — Notes receivable 35,845 — — — — Accounts receivable 3,127,848 — — — — Other receivables 3,134,946 — — — — Receivables from agents 671,914 — — — — Guarantee deposits paid (recognized as other current assets and other non-current assets) 401,921 — — — — Subtotal 124,771,210 — — — — Total $ 170,027,807 15,963,864 28,539,923 752,810 45,256,597 Financial liabilities measured at amortized cost Short term borrowings $ 40,000 — — — — Accounts payable 12,751,202 — — — — Other payables 4,898,683 — — — — Lease liabilities (including financial liabilities for hedging) 12,124,461 — — — — Payables to agents 103,337 — — — — Bonds payable (including current portion) 2,000,000 — — — — Long term borrowings (including current portion) 52,821,019 — — — — Guarantee deposits received (recognized as other current liabilities and other non- current guarantee deposits received) 1,871,376 — — — — Total $ 86,610,078 — — — — December 31, 2025 Fair value Book value Level 1 Level 2 Level 3 Total (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 5 ～
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Financial assets at fair value though profit or loss Non-derivative financial assets mandatorily measured at fair v a l u e t h r o u g h p r o f i t o r l o s s － domestic listed stocks $ 8,430,468 8,430,468 — — 8,430,468 Subtotal 8,430,468 8,430,468 — — 8,430,468 Financial assets at fair value through other comprehensive income Domestic listed stocks 4,316,036 4,316,036 — — 4,316,036 Foreign listed stocks 708,304 708,304 — — 708,304 Unquoted equity instrument measured at fair value 714,449 — — 714,449 714,449 Corporate bonds 21,580,035 — 21,580,035 — 21,580,035 Subtotal 27,318,824 5,024,340 21,580,035 714,449 27,318,824 Financial assets at amortized cost Cash and cash equivalents 98,436,005 — — — — Current financial assets at amortized cost 25,688,356 — — — — Notes receivable 56,763 — — — — Accounts receivable 3,491,613 — — — — Other receivables 3,950,305 — — — — Receivables from agents 634,155 — — — — Guarantee deposits paid (recognized as other current assets and other non-current assets) 343,787 — — — — Subtotal 132,600,984 — — — — Total $ 168,350,276 13,454,808 21,580,035 714,449 35,749,292 Financial liabilities measured at amortized cost Short-term borrowings $ 9,094,079 — — — — Accounts payable 11,097,048 — — — — Other payables 14,218,945 — — — — Lease liabilities (including financial liabilities for hedging) 11,246,818 — — — — Payables to agents 122,179 — — — — Bonds payable (including current portion) 4,500,000 — — — — Long-term borrowings (including current portion) 51,015,900 — — — — Guarantee deposits received (recognized as other current liabilities and other non- current guarantee deposits received) 1,617,793 — — — — Total $ 102,912,762 — — — — June 30, 2025 Fair value Book value Level 1 Level 2 Level 3 Total (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 6 ～
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2) Valuation techniques for financial instruments measured at fair value A. Non-derivative financial instruments If quoted prices in active markets are available, the prices are established as fair values. Market prices published by major stock exchange and OTC market, where high volume of central government bonds are traded, are the foundation of fair value of debt instruments with quoted market price in an active market and listed equity instruments. A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. If a financial instrument does not accord with the definition aforementioned, then it is considered to be without quoted price in active market. In general, market with low trading volume or high-ask spreads is an indication of non-active market. If the Groups’ financial instruments have an active market, wherein their fair values are determined as follows: Domestic listed stocks and emerging stocks are the financial assets with standard terms and conditions and traded in active markets, which fair values are determined by reference to the quoted market prices. In addition to the financial instruments with active markets mentioned above, other measurements of fair value of financial instruments without an active market are based on quoted market price provided by third-party institutions’ valuation technique or quoted price with reference to counterparties. Fair value obtained by using valuation techniques can be calculated by reference to other similar financial instruments or discounted cash flow method or other valuation techniques, including using models based on market information available at the consolidated balance sheet date. If the Groups’ financial instruments do not have an active market, wherein their fair values are determined as follows: Debt instrument: The Company estimates the fair values by using the open quoted market price provided by third-party institutions. Unquoted equity instrument: The Company estimates the fair values by using the comparable trading company approach on the assumption that the fair values are calculated on the basis of the investees’ book value per share and equity multipliers derived from comparable trading companies’ quoted prices. The discount effect resulting from the lack of market liquidity has been taken into account. Unquoted equity instrument: The Company estimates the fair values by using the comparable trading company approach on the assumption that the fair values are calculated on the basis of the investees’ EBITDA and earnings multipliers derived from comparable trading companies’ quoted prices. The discount effect resulting from the lack of market liquidity has been taken into account. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 7 ～
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3) For the six months ended June 30, 2026 and 2025, there were no transferring of fair value hierarchy. 4) Reconciliation of Level 3 fair values Fair value through other comprehensive income Unquoted equity instruments Opening balance, January 1, 2026 $ 752,810 Total gains and losses recognized: In other comprehensive income (163,005) Ending balance, June 30, 2026 $ 589,805 Opening balance, January 1, 2025 $ 562,712 Total gains and losses recognized: In other comprehensive income 151,737 Ending balance, June 30, 2025 $ 714,449 For the six months ended June 30, 2026 and 2025, the total gains and losses that were included in “other gains and losses” and “unrealized gai ns (losses) on financial assets at fair value through other comprehensive income” were as follows: For the three months ended June 30 For the six months ended June 30 2026 2025 2026 2025 Total gains and losses recognized: In other comprehensive income, and presented in “unrealized gains or losses from financial assets at fair value through other comprehensive income” $ (144,898) 144,592 (163,005) 151,737 5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement The Group’s financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through other comprehensive income – unlisted equity investments”. Most of the Group ’s fair value measurements in Level 3 consist of only one significant unobservable input (except for the unlisted equity instrument). Because the significant unobservable inputs of equity instruments are independent of each other, there are no correlation between these inputs. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 8 ～
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Quantified information of significant unobservable inputs was as follows: Financial assets at fair value through other comprehensive income-Unlisted equity investments Comparable trading company method ‧ Liquidity-adjusted discount rate (28% on June 30, 2026, December 31, 2025 and June 30, 2025) ‧ Price-to-book ratio (0.67, 0.89 and 0.87 on June 30, 2026, December 31, 2025 and June 30, 2025, respectively) ‧ EBITDA multiplier (9.50, 8.59 and 8.64 on June 30, 2026, December 31, 2025 and June 30, 2025, respectively) The estimated fair value would increase (decrease) if: ‧ the liquidity adjusted discount rate were lower (higher). ‧ the price-to-book ratio were higher (lower). ‧ the EBITDA multiplier were higher (lower). Item Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement 6) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions The Group ’s measurements in financial instruments fair values are reasonable, but if the Group uses different valuation models or variables, the measurements may vary. For fair value measurements in Level 3, changing one or more of the variables would have the following effects: June 30, 2026 Financial assets at fair value through other comprehensive income Unlisted equity investment Discount rate 1% $ 8,192 (8,192) Unlisted equity investment Price-to-book ratio multiplier 1% 5,768 (5,768) Unlisted equity investment EBITDA multiplier 1% 115 (115) $ 14,075 (14,075) Positive and negative changes Other comprehensive income Input Favorable Unfavorable (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 4 9 ～
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December 31, 2025 Financial assets at fair value through other comprehensive income Unlisted equity investment Discount rate 1% $ 10,456 (10,456) Unlisted equity investment Price-to-book ratio multiplier 1% 7,408 (7,408) Unlisted equity investment EBITDA multiplier 1% 105 (105) $ 17,969 (17,969) June 30, 2025 Financial assets at fair value through other comprehensive income Unlisted equity investment Discount rate 1% $ 9,923 (9,923) Unlisted equity investment Price-to-book ratio multiplier 1% 7,017 (7,017) Unlisted equity investment EBITDA multiplier 1% 109 (109) $ 17,049 (17,049) Positive and negative changes Other comprehensive income Input Favorable Unfavorable The favorable and unfavorable effects represent the changes in fair value, and the fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the correlations and variances among the inputs. (ab) Financial risk management There were no significant changes in the Group’s financial risk management and policies as disclosed in note (6)(ac) of the consolidated financial statements for the year ended December 31, 2025. (ac) Capital management Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2025. Also, management believes that there were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2025 . Please refer to note (6)(ad) of the consolidated financial statements for the year ended December 31, 2025 for further details. (ad) Investing and financing activities not affecting current cash flow The Group’s investing and financing activities which did not affect the current cash flow in the six months ended June 30, 2026 and 2025 were as follows: 1. Acquired right-of-use assets through leasing, please refer to note (6)(j). (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 0 ～
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Reconciliation of liabilities arising from financing activities were as follows: Non-cash changes 2026.1.1 Cash flows Others Foreign exchange movement 2026.6.30 Long-term borrowings $ 52,821,019 (5,442,849) 48,516 (78,729) 47,347,957 Short-term borrowings 40,000 478,000 — — 518,000 Bonds payable 2,000,000 — — — 2,000,000 Lease liabilities (partial recognized as financial liabilities for hedging) 12,124,461 (921,178) 1,908,337 41,214 13,152,834 Total liabilities from financing activities $ 66,985,480 (5,886,027) 1,956,853 (37,515) 63,018,791 Non-cash changes 2025.1.1 Cash flows Others Foreign exchange movement 2025.6.30 Long-term borrowings $ 66,466,029 (13,824,015) (46,952) (1,579,162) 51,015,900 Short-term borrowings — 9,094,079 — — 9,094,079 Bonds payable 4,500,000 — — — 4,500,000 Lease liabilities (partial recognized as financial liabilities for hedging) 12,733,348 (1,314,052) 158,914 (331,392) 11,246,818 Total liabilities from financing activities $ 83,699,377 (6,043,988) 111,962 (1,910,554) 75,856,797 (7) Related-Party Transactions (a) Names and relationship with related parties Alpha Total Solution Pte. Ltd. (Alpha) Subsidiary of APLI HAI PHONG INTERNATIONAL CONTAINER TERMINAL CO LTD. (HAI PHONG) An associate Hyaline Shipping (HK) Co., Ltd. (Hyaline) Same director with the Group Interasia Lines (M) SDN. BHD. (IAL (M)) Related party in substance Interasia Lines Singapore Pte. Ltd. (IAL Singapore) Related party in substance PHU HUNG MARITIME SERVICE COMPANY LIMITED (PHU HUNG) Joint venture of joint venturers under the joint agreement PHUC XUAN MARITIME SERVICE CO., LTD. (Phuc Xuan) Joint venture of joint venturers under the joint agreement Wan Hai Lines (Japan), Ltd. (WHL Japan) Same director with the Group Wan Hai Lines (UAE) LLC. (WHL UAE) An associate PT. SINERGI BAHTERA MITRA (SBM) Joint venture of joint venturers under the joint agreement Formosa Wonderworld Co., Ltd. (Formosa Wonderworld) Related party in substance New World Container services Corporation (New World) Subsidiary of APLI Taipei Port Container Terminal Corp. (Taipei Port) Corporate director of the Group Ennea Solar Energy LLC. (Ennea Solar Energy) Related party in substance An Chun Tally Co., Ltd. (An Chun Tally) Related party in substance Named of related party Relationship with the Company (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 1 ～
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ASIA PACIFIC LOGISTICS INTERNATIONAL CO., LTD. (APLI) Related party in substance AP PETROLEUM BUSINESS CO., LTD. (AP PETROLEUM BUSINESS) Subsidiary of APLI AP INTERNATIONAL TRAVEL SERVICE CO., LTD. (AP INTERNATIONAL TRAVEL) Subsidiary of APLI JOHNSON CHECKER CO., LTD (JOHNSON) Related party in substance Express Container Terminal Corp. (ECTC) Related party in substance QINGDAO PORT AND WIN INTERNATIONAL LOGISTICS CO., LTD. (QINGDAO PORT AND WIN INTERNATIONAL LOGISTICS) Joint venture of joint venturers under the joint agreement CHIEN LAI ENTERPRISE CO., LTD (CHIEN LAI ENTERPRISE) Related party in substance Taian Insurance Co., Ltd. (Taian Insurance) Related party in substance Sunshine Shihlin Dev Co., Ltd. (Sunshine Shihlin) Related party in substance New Safety Transportation Corp. (NSaTC) Related party in substance Shin Sheng Transportation Co., Ltd. (Shin Sheng) Related party in substance Tang Cang-Cai Mep International Terminal Co., Ltd (Tan C a n g - C a i M e p ) An associate New Sincere Transportation Corp. (NSTC) Related party in substance Wan Chun International Corp. (WCIC) Subsidiary of ECTC Interasia Lines Taiwan, Ltd. (IAL (TW)) Related party in substance Universal Checker Co., Ltd. (Universal Checker) Related party in substance Wan Hai Charity Foundation (Wan Hai Charity Foundation) Related party in substance TAI SOUNDS CO. LTD. (TAI SOUNDS) Subsidiary of APLI Tai Chuan Investments Co., Ltd. (Tai Chuan) Related party in substance SUNNYFIELD SHIHLIN CO., LTD. (SUNNYFIELD SHIHLIN) Related party in substance Shihlin Paper Co., Ltd. (Shihlin Paper) Related party in substance Named of related party Relationship with the Company (b) Significant transactions with related parties 1. Sales to related parties: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Other related parties $ 557,568 507,381 1,047,019 1,117,854 Joint venture 23,696 17,291 38,639 35,027 $ 581,264 524,672 1,085,658 1,152,881 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 2 ～
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The transaction terms with related parties were not significantly different from those of sales to third parties. The average collection period for notes and accounts receivable pertaining to such sales transactions ranged from one to three months, while the average collection period for routine sales transactions was within one month. 2. Consideration for services related to the entity: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Associate $ 87,056 142,024 240,321 239,485 Joint venture 6,065 6,106 14,658 13,654 Other related parties 913,732 950,811 1,835,825 2,078,563 $ 1,006,853 1,098,941 2,090,804 2,331,702 The transaction terms with related parties were not significantly different from those with the third parties. The average payment period for notes and accounts payable pertaining to such purchase transactions ranged from one to two months, which was similar to that of other normal vendors. 3. Receivables from related parties and other assets Receivables of the Group from related parties were as follows: Item Related party categories 2026.6.30 2025.12.31 2025.6.30 Accounts receivable Other related parties $ 507,767 187,923 205,620 Accounts receivable Associate 34,948 19,131 42,700 Accounts receivable Joint venture 673 1,294 — Other receivables Associate 385,841 141,338 384,510 Other receivables Other related parties 24,970 23,205 42,784 Receivables from agents Other related parties-WHL Japan 441,196 367,488 362,917 Other current assets Other related parties 7,191 9,131 11,525 4. Payables to related parties and other liabilities Payables of the Group to related parties were as follows: Accounts payable Other related parties $ 295,353 282,876 253,729 Accounts payable Joint venture 12,941 12,003 9,897 Other payables Other related parties 6,251 6,243 5,552 Payables to agents Associate-WHL UAE 1,073 4,872 6,652 Other current liabilities Other related parties 2,287 99 304 Item Related party categories 2026.6.30 2025.12.31 2025.6.30 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 3 ～
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5. Property transactions 1) Disposal of property, plant and equipment The sales of property, plant and equipment to related parties are summarized as follows: For the three months ended June 30, 2026 2025 Related party categories Disposal price Gain from disposal Disposal price Gain from disposal Other related parties $ — — 142 95 For the six months ended June 30, 2026 2025 Related party categories Disposal price Gain from disposal Disposal price Gain from disposal Other related parties $ 94 27 142 95 Joint venture — — 3,073 800 $ 94 27 3,215 895 6. Other related-party transactions Other transactions of the Group for the three months and six months ended June 30, 2026 were as follows: For the three months ended June 30, For the six months ended June 30, Item Related party categories 2026 2025 2026 2025 Insurance claim income Other related parties $ 4,791 104 58,506 104 Sale price for fuel inventory Other related parties — — — 42,643 Manpower support service income Associate — — 1,799 1,876 Manpower support service income Other related parties 5,026 5,310 9,813 9,777 Rent income Other related parties 157 169 329 338 Miscellaneous disbursements Other related parties 10,926 5,554 16,971 13,679 7. Leasing The Group rented office buildings from its related parties to be used as its offices, and 15-18 years lease contracts were signed . The rental fees were determined based on nearby office rental rates, therefore, the total value of the contracts was $21,781 thousand on June 30, 2026 and 2025. For the three months and six months ended June 30, 2026 and 2025, the Group recognized the amount of $114 thousand, $116 thousand, $228 thousand and $239 thousand as interest expense, respectively. As of June 30, 2026 , December 31, 2025 and June 30, 2025 , the balance of lease liabilities amounted to $10,690 thousand, $10,859 thousand and $10,583 thousand, respectively. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 4 ～
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The Group rented containers from its other related parties, 2-7 years lease contracts were signed. The rental fees were determined based on market price, therefore, the total value of the contract was $52,902 thousand on June 30, 2026 and 2025. For the three months and six months ended June 30, 2026 and 2025, the Group recognized the amount of $40 thousand, $100 thousand, $96 thousand and $215 thousand as interest expense, respectively. As of June 30, 2026, December 31, 2025 and June 30, 2025 , the balance of lease liabilities amounted to $4,446 thousand, $8,832 thousand and $13,158 thousand, respectively. (c) Key management personnel remuneration Key management personnel remuneration comprised: For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Short-term employee benefits $ 171,274 18,436 278,488 138,695 Post-employment benefits 64 62 127 127 $ 171,338 18,498 278,615 138,822 (8) Pledged Assets The carrying values of pledged assets were as follows: Assets Objective 2026.6.30 2025.12.31 2025.6.30 Time deposits (recognized in other current assets) Registration of container storage and truck lease contract $ 8,481 8,741 7,920 Time deposits (recognized in other non-current assets) Refundable deposits of harbor bureau and lease contract for wharf 185,409 144,657 142,507 Guarantee deposit paid (recognized in other non-current assets) Lease contract for wharf and building 249,200 248,523 193,360 Vessel equipment (recognized in Property, plant and equipment) Long-term loans 39,162,083 39,605,856 38,059,328 Land and Buildings (recognized in Property, plant and equipment) Long-term loans 3,324,966 3,335,049 3,345,132 Land and Buildings (recognized in investment property) Long-term loans 1,988,373 1,995,435 2,002,496 $ 44,918,512 45,338,261 43,750,743 (9) Significant Contingencies and Commitments (a) Contract for port rental To increase the quality of service and to decrease the cost of operations, the Group entered into a contract to lease a wharf in Japan in March 2003 and renewed it in April 2008. The renewed lease period is 20 years, from March 2008 to March 2028. As of June 30, 2026 , the lease deposit amounting to JPY 255,775,000 (approximately TWD 50,203 thousand), which is recognized as other non-current assets. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 5 ～
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The Group cooperated with the Kaohsiung Harbor Bureau to lease wharfs No. 63 and 64 in August 1994 and renewed the contract in December 2016, for a total of eight-year lease term. As of June 30, 2026, since the previous contract has expired, and the new contract with the Kaohsiung Harbor Bureau is still pending to be signed. The Group has paid the guarantee deposit of $ 40,000 thousand, which is recognized as other non-current assets. The Group officially signed a contract with Kaohsiung Harbor Bureau to lease wharfs No. 79, 80 and 81 in January 2022, the lease period is from January 2024 to December 2043, for a total of twenty- year lease term, and $ 6,149,996 thousand will be recognized as right-of-use asset. The Group has paid the guarantee deposit of $76,000 thousand, which is recognized as other non-current assets. The Group cooperated with the Taichung Harbor Bureau to lease wharfs No. 34 and 35 in December 1999, and renewed the contract in August 2018 for a total of fifteen-year lease term. The Group has paid the guarantee deposit of $33,440 thousand, which is recognized as other non-current assets. The Group expects to formally sign a contract with Yokohama Kawasaki International Port Corporation (YKIP) in April 2028 to lease the Honmoku D-4 Terminal at the Port of Yokohama. The lease term will run for a total of twenty years, from April 2028 to March 2048, and is expected to result in the recognition of a right-of-use asset totaling $3,014,199 thousand. The Group signed a confirmation of lease agreement with Hanshin Port and Mitsui-Soko Terminal Co., Ltd. in January 2026 to lease the C9 Terminal at the Port of Osaka. The lease term is expected to run from September 2026 to August 2041, for a total of fifteen years, and will result in the recognition of a right-of-use asset totaling $2,744,530 thousand. Since February 2006, the Group has leased the hinterland of West 29 wharf to West 32 wharf from the Keelung Harbor Bureau. The lease term is 30 years from the day after the completion of the joint venture construction of warehouse facilities and acceptance by the Harbor Bureau. (b) Vessel construction contract Due to its operational needs, the Group entered into an agreement with HD HYUNDAI SAMHO CO., LTD., at a total price ranging from approximately USD 454,000 thousand to USD 521,640 thousand (equivalent to TWD 14,686,900 thousand to TWD 16,875,054 thousand), in September 2024, for the construction of 4 methanol dual fuel full-container vessels, with capacity around 8,700 TEUs. The Group has prepaid the amount of TWD 6,469,372 thousand as prepayments for equipment. As of June 30, 2026, 2 vessels have been transferred. Due to its operational needs, the Group entered into an agreement with SAMSUNG HEAVY INDUSTRIES CO., LTD., at a total price ranging from approximately USD 750,520 thousand to USD 816,000 thousand (equivalent to TWD 24,016,640 thousand to TWD 26,112,000 thousand), in November 2024, for the construction of 4 methanol dual fuel ready full-container vessels, with capacity around 16,000 TEUs. As of June 30, 2026, the Group has prepaid the amount of TWD 2,502,518 thousand as prepayments for equipment. Due to its operational needs, the Group entered into an agreement with HD HYUNDAI SAMHO CO., LTD., at a total price ranging from approximately USD 745,960 thousand to USD 816,000 thousand ( equivalent to TWD 23,870,720 thousand to TWD 26,112,000 thousand), in November 2024, for the construction of 4 methanol dual fuel ready full-container vessels, with capacity around (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 6 ～
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16,000 TEUs. As of June 30, 2026 , t he Group has prepaid the amount of TWD 3,767,154 thousand as prepayments for equipment. Due to its operational needs, the Group entered into an agreement with CSBC CORPORATION, TAIWAN in January 2025 for the construction of 12 methanol dual fuel full-container vessels, with capacity around 8,000 TEUs, with the option to purchase 4 more vessels, at a total price ranging from approximately USD 1,230,000 thousand to USD 1,984,000 thousand (equivalent to TWD 39,790,500 thousand to TWD 64,182,400 thousand). Following its internal evaluation, the Group has decided not to proceed with the option to purchase 4 more vessels, resulting in the total price above to be adjusted to an amount ranging from approximately USD 1,230,000 thousand to USD 1,488,000 thousand (equivalent to TWD 39,790,500 thousand to TWD 48,136,800 thousand). As of June 30, 2026, the Group has prepaid the amount of TWD 4,479,652 thousand. Due to its operational needs, the Group entered into an agreement with SAMSUNG HEAVY INDUSTRIES CO., LTD. in April 2025 for the construction of 2 methanol dual fuel ready full- container vessels, with capacity around 16,000 TEUs, at a total price ranging from approximately USD 375,260 thousand to USD 408,000 thousand (equivalent to TWD 12,184,692 thousand to TWD 13,247,760 thousand). As of June 30, 2026 , the Group has prepaid the amount of TWD 1,228,964 thousand. Due to its operational needs, the Group entered into an agreement with HD HYUNDAI SAMHO CO., LTD. in April 2025 for the construction of 2 methanol dual fuel ready full-container vessels, with capacity around 16,000 TEUs, at a total price ranging from approximately USD 372,980 thousand to USD 408,000 thousand (equivalent to TWD 12,110,661 thousand to TWD 13,247,760 thousand). As of June 30, 2026, the Group has prepaid the amount of TWD 1,249,437 thousand. Due to its operational needs, the Group entered into an agreement with CSSC HUANGPU WENCHONG SHIPBUILDING CO., LTD. and CHINA SHIPBUILDING TRADING CO., LTD. , in February 2026 for the construction of 6 LNG dual fuel ready full-container vessels , with capacity around 6,000 TEUs, at a total price ranging from approximately USD 451,200 thousand to USD 492,000 thousand (equivalent to TWD 14,158,656 thousand to TWD 15,438,960 thousand) . As of June 30, 2026, the Group has prepaid the amount of TWD 2,993,123 thousand. Due to its operational needs, the Group entered into an agreement with CSSC HUANGPU WENCHONG SHIPBUILDING CO., LTD. and CHINA SHIPBUILDING TRADING CO., LTD. in March 2026 for the construction of 4 LNG dual fuel ready full-container vessels , with capacity around 6,000 TEUs, at a total price ranging from approximately USD 300,800 thousand to USD 328,000 thousand (equivalent to TWD 9,550,400 thousand to TWD 10,414,000 thousand) . As of June 30, 2026, the Group has prepaid the amount of TWD 1,985,656 thousand. Due to its operational needs, the Group entered into an agreement with SHANGHAI WAIGAOQIAO SHIPBUILDING CO., LTD. and CHINA SHIPBUILDING TRADING CO., LTD. in March 2026 for the construction of 2 methanol dual fuel ready full-container vessels , with capacity around 9,200 TEUs, at a total price ranging from approximately USD 204,000 thousand to USD 224,000 thousand (equivalent to TWD 6,477,000 thousand to TWD 7,112,000 thousand). As of June 30, 2026, the Group has prepaid the amount of TWD 1,332,604 thousand. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 7 ～
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(c) Vessel purchase contract In 2024, the Group signed a contract for the purchase of two second-handed container ships at a total price of approximately USD 176,000 thousand to USD 188,000 thousand (equivalent to TWD 5,688,320 thousand to TWD 6,076,160 thousand) in response to operational needs. As of May 31, 2025, all vessels have been transferred. (d) Privileged wharf equipment purchase contract Due to its operational needs, the Group signed a contract for the purchase of p rivileged wharf equipment at a total price of USD 21,986 thousand (equivalent to TWD 692,570 thousand). As of June 30, 2026, the unpaid amount under the contract totaled USD 17,765 thousand. (e) As of June 30, 2026 since the Group has to deal with several the legal cases, which are still in progress, it estimated the most probable payments on account according to the evolution of cases. (10) Losses Due to Major Disasters: None. (11) Significant Subsequent Events: (a) Based on the Group’s long-term development strategy and overall fleet deployment requirements, the Group’s Board of Directors approved an amendment to the shipbuilding contract on August 12, 2026. Pursuant to the amendment, the second 9,200 TEU methanol dual-fuel-ready vessel originally approved by the Board of Directors on March 10, 2026, for procurement from SHANGHAI W A I G A O Q I A O S H I P B U I L D I N G C O . , L T D . 、 C H I N A S H I P B U I L D I N G T R A D I N G C O . , L T D . , will be changed to an approximately 11,000 TEU vessel equipped with both Methanol DF Ready and LNG DF Ready capabilities. The total contract price is expected to increase by approximately USD 12,000 thousand to USD 16,000 thousand (equivalent to approximately TWD 385,920 thousand to TWD 514,560 thousand). (b) Based on Group’s long-term development strategy and overall fleet deployment requirements , the Group’s Board of Directors approved on August 12, 2 0 2 6 ， to purchase 6 vessels equipped with both Methanol DF Ready and LNG DF Ready capabilities, with a capacity to contain approximately 11,000 TEUs, from SHANGHAI WAIGAOQIAO SHIPBUILDING CO., LTD. and CHINA SHIPBUILDING TRADING CO., LTD., at a total amount ranging from USD 708,000 thousand to USD 744,000 thousand (approximately TWD 22,769,280 thousand to TWD 23,927,040 thousand). (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 8 ～
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(12) Others (a) Employee benefits, depreciation, depletion, and amortization expenses, categorized as operating cost or expense, were as follows: By function For the three months ended June 30, 2026 For the three months ended June 30, 2025 By item Operating Cost Operating Expense Total Operating Cost Operating Expense Total Employee benefits Salary 1,528,324 885,227 2,413,551 1,426,606 709,272 2,135,878 Labor and health insurance 9,732 91,122 100,854 9,656 85,028 94,684 Pension 29,262 31,684 60,946 26,193 26,968 53,161 Remuneration of directors — 164,431 164,431 — 12,121 12,121 Others employee benefits 95,186 32,788 127,974 92,083 24,662 116,745 Depreciation 3,774,060 106,666 3,880,726 3,562,996 96,122 3,659,118 Amortization 9,348 11,805 21,153 7,765 9,305 17,070 By function For the six months ended June 30, 2026 For the six months ended June 30, 2025 By item Operating Cost Operating Expense Total Operating Cost Operating Expense Total Employee benefits Salary 3,042,228 1,871,598 4,913,826 2,886,092 1,631,170 4,517,262 Labor and health insurance 19,475 191,270 210,745 18,865 186,966 205,831 Pension 58,466 64,097 122,563 52,942 58,069 111,011 Remuneration of directors — 265,003 265,003 — 125,701 125,701 Others employee benefits 200,774 59,966 260,740 191,765 50,785 242,550 Depreciation 7,407,628 211,590 7,619,218 7,324,767 197,493 7,522,260 Amortization 19,268 23,694 42,962 15,464 18,853 34,317 (b) Seasonality of operations: The Group’s operations were not affected by seasonality or cyclicality factors. (13) Other Disclosures (a) Information on significant transactions The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the six months ended June 30, 2026: (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 5 9 ～
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1. Fund financing to other parties: (In thousands of TWD) Num- ber (Note 1) Name of lender Name of borrower Account name Related party Highest balance of financing to other party during the period Ending balance Actual usage amount during the period (Note 7) Range of interest rates during the period Purposes of fund financing for the borrower (Note 2) Transaction amount for business between two parties Reasons for short- term financing Allowance for bad debt Collateral Individual funding loan limits (Note 6) Maximum limitation on fund financing (Note 6)Name Value 0 The Company WHL Singapore Other receivable related Yes 1,599,750 1,592,500 — — Note 2 — Note 5 — Promissory note 1,592,500 115,434,969 115,434,969 Note 1: numbers denote the following: 1. 0 represents the Company. 2. Subsidiaries are listed by names and numbered starting with 1. Note 2: Short-term financing. Note 3: Repayment of loans. Note 4: Acquisition of assets. Note 5: Operating activities. Note 6: Financing amount shall not exceed 40% of the lending company’s net worth and the following: 1.Individual funding loan limits of financing for single borrower who has business with the lending company cannot exceed the total transaction amount of the current year. 2.Individual funding loan limits for short-term borrower cannot exceed 40% of the Company’s net worth. 3.The individual loaned amount between the foreign companies whose voting shares are wholly owned by the Company directly or indirectly, or the amount that the foreign companies whose voting shares are wholly owned by the Company directly or indirectly loaned to the Company, shall not exceed 40% of the lending company’s net worth. Note 7: Eliminated in the consolidated financial statement. 2. Guarantees and endorsements for other parties: (In thousands of TWD) Number (Note 1) Counter-party of guarantee and endorsement Limitation on amount of guarantees and endorsements for a specific enterprise Highest balance for guarantees and endorsements during the period Balance of guarantees and endorsements as of reporting date Actual usage amount during the period Amount of Guarantee Collateralized by Property Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements Maximum amount for guarantees and endorsements (Note3) Parent company endorses/ guarantees to third parties on behalf of subsidiary Subsidiary endorses/ guarantees to third parties on behalf of parent company Endorsements guarantees to third parties on behalf of companies in Mainland China Name of the company Name Relationship with the Company (Note 2) 0 The Company WHL Singapore 2 577,174,843 28,945,858 28,945,858 28,945,858 — 10.03 % 577,174,843 Y N N 1 WHL Singapore The Company 3 476,687,293 2,250,000 2,175,000 2,175,000 2,175,000 0.91 % 476,687,293 N Y N (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 6 0 ～
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Note 1: numbers denote the following: 1. 0 represents the Company. 2. Subsidiaries are listed by names and numbered starting with 1. Note 2: Relationship with the Company 1. The companies with which it has business relations. 2. Subsidiaries in which the company directly or indirectly holds more than 50% of its total outstanding common shares. 3. The parent company which directly or indirectly holds more than 50% of its voting rights. 4. Subsidiaries in which the company directly or indirectly holds more than 90% of its voting rights. 5. Companies in same type of business and providing mutual endorsements/ guarantees in favor of each other in accordance with the contractual obligations in order to fulfill the needs of the construction project. 6. Shareholders making endorsements and/or guarantees for their mutually invested company in proportion to their shareholding percentage. 7. Companies in same type of business providing guarantees of pre-sale contracts according to the regulation. Note 3: According to the Company’s “Policy and Procedures for Guarantee and Endorsement”: 1. External endorsements and guarantees made by the Company may not exceed 200% of the Company’s net worth. 2. Endorsements and guarantees made to a single enterprise may not exceed 40% of the Company or its subsidiaries’ net worth. 3. The total amount of endorsements and guarantees of the Company and its subsidiaries as a whole may not exceed 250% of the Company’s net worth. 4. Endorsements and guarantees made by the Company and its subsidiaries to a single enterprise may not exceed 50% of the Company’s net worth. 5. Endorsements and guarantees made by the Company to the subsidiaries, or subsidiaries to the Company, are not subject to the above- mentioned restrictions. However, the aggregate amount of endorsements/guarantees that the Company or its subsidiaries make for a single company may not exceed 200% of the net worth of the company providing guarantees. 3. Securities held as of June 30, 2026 (excluding investment in subsidiaries, associates and joint ventures): (In thousands of TWD/shares) Domestic listed stocks: The Company Delta Electronics, Inc. - Financial assets at fair value t h r o u g h p r o f i t o r l o s s - c u r r e n t 4,167,000 8,125,650 0.16 % 8,125,650 〞 Taiwan Semiconductor Manufacturing Co., Ltd - 〞 1,484,000 3,576,440 0.01 % 3,576,440 Domestic listed stocks: The Company Chunghwa Telecom Co., Ltd. - Financial assets at fair value through other comprehensive i n c o m e - n o n - c u r r e n t 27,520,000 3,894,080 0.35 % 3,894,080 Name of holder Category and name of security Category and name of security Account title Ending balance Notes Number of shares Book value Percentage of shares Market value Note: This table includes securities that must be disclosed based on the principle of corporate materiality. 4. Buying/selling products for which the dollar amount reaches $100 million or 20% or more of paid-in capital: The Company WHL Singapore Subsidiary Charter hire income, container rental revenue, shipping agent revenue, joint venture revenue (4,344,701) 10.18 % 30 days — — — — Note 2 Name of company Name of Counter- party Relationship Transaction details Reasons why and description of how the transaction conditions differ from general transactions Account/note receivable (payable) NotesPurchase/ Sale Amount Percentage of total purchases/ sales Credit period Unit price Credit period Balance Percentage of total accounts/ notes receivable (payable) (Note 1) (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 6 1 ～
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The Company WHL Singapore Subsidiary Charter hire cost, joint venture cost 9,924,166 27.39 % 30 days — — (3,138,670) 29.14 % Note 2 The Company APLI Related party in substance Container fee 202,544 0.56 % 30 days — — (5,897) 0.05 % The Company NSTC Related party in substance Tow charge 244,480 0.67 % 30 days — — (83,846) 0.78 % The Company Taipei Port Corporate director of the company Container fee, terminal handling charges 464,933 1.28 % 30 days — — (83) — The Company IAL Singapore Related party in substance Joint venture revenue, container rental revenue, shipping agent revenue, charter hire income (796,723) 1.87 % 30 days — — 483,355 6.05 % The Company IAL Singapore Related party in substance Joint venture cost, container rental cost 153,788 0.42 % 30 days — — — — The Company Tan C a n g - C a i Mep Associate Terminal handing charges, container fee, charges for port of call 180,805 0.50 % 30 days — — — — The Company WHL Japan Same director with the company Commission fee 171,269 0.47 % 30 days — — — — The Company WHL Hongkong Subsidiary Commission fee 1,076,354 2.97 % 30 days — — (569,541) 5.29 % Note 2 The Company WHL Malaysia Subsidiary Commission fee 112,160 0.31 % 30 days — — — — Note 2 WHL Singapore The Company Subsidiary Charter hire cost, container rental expense, shipping agent expense, joint venture cost 4,344,701 12.28 % 30 days — — — — Note 2 WHL Singapore The Company Subsidiary Charter hire income, joint venture revenue (9,759,790) 20.74 % 30 days — — 3,138,670 62.46 % Note 2 WHL Hongkon g The Company Subsidiary Commission income (1,076,354) 95.24 % 30 days — — 569,541 8.88 % Note 2 WHL Malaysia The Company Subsidiary Commission income (112,160) 100.00 % 30 days — — — — Note 2 Name of company Name of Counter- party Relationship Transaction details Reasons why and description of how the transaction conditions differ from general transactions Account/note receivable (payable) NotesPurchase/ Sale Amount Percentage of total purchases/ sales Credit period Unit price Credit period Balance Percentage of total accounts/ notes receivable (payable) (Note 1) N o t e 1 : I n c l u d i n g n o t e s r e c e i v a b l e / p a y a b l e , a c c o u n t s p a y a b l e － r e l a t e d p a r t i e s a n d r e c e i v a b l e / p a y a b l e f r o m / t o a g e n t s , c o n t r a c t a s s e t s . Note 2: Eliminated in the consolidated financial statements. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 6 2 ～
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5. Accounts receivable from related parties for which the dollar amount reaches $100 million or 20% or more of paid-in capital: The Company (Note 3) WHL Singapore Subsidiary 617,153 — — — 592,345 — The Company (Note 2) WHL Japan Same director with the Company 441,196 — — — 304,018 — The Company (Note 2) Shenzhen Uniwin Subsidiary 643,735 — — — 582,298 — The Company (Note 2) Clipper Subsidiary 1,469,239 — — — 1,469,239 — The Company (Note 2) WHL USA Subsidiary 423,740 — — — 368,110 — The Company (Note 2) WHL India Subsidiary 553,710 — — — 411,125 — The Company (Note 2) WHL Phils. Subsidiary 263,084 — — — 249,280 — The Company (Note 2) IAL Singapore Related party in substance 483,355 — — — 483,355 — The Company (Note 3) T a n C a n g - C a i M e p Associate 141,220 — — — — — The Company (Note 3) HAI PHONG Associate 244,621 — — — — — BS (Note 2) The Company Subsidiary 173,529 — — — 127,283 — WHL Singapore (Note 2) The Company Subsidiary 3,138,670 — — — 3,138,670 — WHL Hongkong (Note 2) The Company Subsidiary 569,541 — — — 288,994 — WHL Thailand (Note 2) The Company Subsidiary 178,855 — — — 88,821 — Name of related party Counter-party Relationship Balance of receivables from related party Turnover rate Past due receivables from related party Subsequently received amount of receivables from related party Allowances for bad debtsAmount Action taken Note 1: Eliminated in the consolidated financial statements. Note 2: Including note receivable, accounts receivable, contract assets and receivable from agent. Note 3: Other receivable. 6. Business relationships and significant inter-company transactions: Number Name of the company Name of the counter-party Existing relationship with the counter party Transaction details during 2026 Account name Amount Terms of trading Percentage of the total consolidated revenue or total assets 0 The Company WHL Hongkong 1 Commission fee 1,076,354 No significant differences 1.41 % 0 The Company WHL Singapore 1 Charter hire income, container rental revenue, shipping agent revenue, joint venture revenue (4,344,701) No significant differences 5.68 % 0 The Company WHL Singapore 1 Charter hire cost, joint venture cost 9,924,166 No significant differences 12.97 % (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 6 3 ～
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Note 1: numbers denote the following: 1. 0 represents the Company. 2. Subsidiaries are listed by names and numbered starting with 1. Note 2: relationship with the listed companies: 1. The Company to subsidiary 2. Subsidiary to the Company 3. Subsidiary to subsidiary Note 3: The disclosed amounts are above 1% of total assets for balance sheet accounts or 1% of total operating revenue for income statement accounts of the Group. (b) Information on investees For the six months ended June 30, 2026 , the following is the information on investees (excluding investees in Mainland China): The Company WAN HAI LINES (SINGAPORE) PTE LTD Singapore Transportation and shipping agency services, chartering of ships, ship management, international transportation and shipping agency services 21,983,099 21,983,099 979,399,234 100.00 % 234,781,202 12,592,765 12,965,687 Subsidiary ( N o t e 2 、 3 ) 〞 k.k. WH Corporation Japan Terminal operation and management service, and vessel rental service 7,141 7,141 500 100.00 % 15,107 2,852 2,852 Subsidiary (Note 3) 〞 Tang Cang-Cai Mep International Terminal Co., Ltd Vietnam Managing wharf and containers 259,917 259,917 — 21.33 % 414,178 484,041 103,246 Equity method ( N o t e 1 、 4 ) 〞 TK Logistics International Co., Ltd. Taiwan Managing container terminals and storage facilities 143,000 143,000 14,300,000 55.00 % 160,081 10,546 5,818 Subsidiary ( N o t e 2 、 3 ) 〞 BAO SHENG SHIPPING AGENCY CO., LTD. Taiwan Acting as agent for transportation affair and contracting ocean shipping and related services 30,000 30,000 3,000,000 70.01 % 42,239 5,416 3,792 Subsidiary (Note 3) 〞 HAI PHONG INTERNATIONAL CONTAINER TERMINAL CO LTD. Vietnam Managing wharf and containers 598,211 598,211 — 16.50 % 714,544 912,653 150,588 Equity method ( N o t e 1 、 4 ) 〞 Dawin Logistics (International) Limited Hong Kong Investment, trucking and godown 850,746 850,746 144,640,000 100.00 % 1,165,285 41,768 41,768 Subsidiary (Note 3) 〞 Wan Hai Lines (H.K.) Limited Hong Kong Transportation and shipping agency services 1,259,282 1,259,282 160,000,000 100.00 % 2,184,792 344,732 401,177 Subsidiary ( N o t e 2 、 3 ) 〞 PT. SINERGI BAHTERA MITRA Indonesia Container yard business 25,592 25,592 24,000 50.00 % 44,871 12,681 6,341 Equity method (Note 4) 〞 WGD Container Service (Thailand) Co., Ltd. Thailand Container yard business 43,186 43,186 490,000 49.00 % 48,166 12,741 6,243 Subsidiary ( N o t e 3 、 4 ) WHL Singapore Wan Hai Lines (Phils.), Inc. Philippines Transportation and shipping agency services 5,991 5,991 901,540 100.00 % 30,343 3,404 3,404 Indirect subsidiary (Note 3) 〞 Wan Hai Lines (M) Sdn. Bhd. Malaysia Transportation and shipping agency services 4,613 4,613 500,000 100.00 % 124,784 4,208 4,208 Indirect subsidiary (Note 3) 〞 Yi Chun Shipping Agencies Sdn. Bhd. Malaysia ODD operation 1,845 1,845 200,000 100.00 % 35,497 4,493 4,493 Indirect subsidiary (Note 3) 〞 Wan Hai Lines (Korea) Ltd. Korea Transportation and shipping agency services 11,019 11,019 80,000 100.00 % 17,640 7,940 7,940 Indirect subsidiary (Note 3) 〞 Wan Hai International Pte. Ltd. Singapore Transportation and shipping agency services 239,979 239,979 10,312,460 100.00 % 922,615 28,164 28,164 Indirect subsidiary (Note 3) 〞 Wan Hai Lines (Thailand) Limited Thailand Transportation and shipping agency services 4,732 4,732 49,000 49.00 % — 7,147 7,147 Indirect subsidiary (Note 3) 〞 Wan Hai (Vietnam) Ltd. Vietnam Transportation and shipping agency services 8,691 8,691 — 100.00 % 95,801 36,118 36,118 Indirect subsidiary ( N o t e 1 、 3 ) 〞 HE CHUN LOGISTICS COMPANY LIMITED Vietnam ODD operation 60,857 60,857 — 100.00 % 234,832 60,137 60,137 Indirect subsidiary ( N o t e 1 、 3 ) 〞 WAN HAI LINES PERU S.A.C. Peru Transportation and shipping agency services 8,016 8,016 297,099 99.00 % 66,762 23,917 23,678 Indirect subsidiary (Note 3) 〞 WANHAI LINES ECUADOR S.A. Ecuador Transportation and shipping agency services 10,246 10,246 99,000 99.00 % 19,795 15,491 15,336 Indirect subsidiary (Note 3) 〞 Bravely International Pte. Ltd. Singapore Transportation and investment 625,026 625,026 28,262,221 100.00 % 76,819 8,573 8,573 Indirect subsidiary (Note 3) 〞 Wan Hai Lines (USA) Ltd. America Transportation and shipping agency services 437,514 437,514 284,381 100.00 % 570,210 (10,665) (10,665) Indirect subsidiary (Note 3) 〞 #N/A Vietnam Container yard business 9,186 9,186 — 49.00 % 51,448 87,247 42,751 Equity method (Note 1) Name of the investor Name of investee Location Major operations Initial investment amount Ending balance Net income (loss) of the investee Investment income (losses) Notes Ending balance Beginning balance Shares Ratio of shares Book value (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 6 4 ～
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〞 Wan Hai Shipping Limited Myanmar Transportation and shipping agency services 1,075 1,075 35,000 70.00 % 752 — — Indirect subsidiary (Note 3) 〞 WAN HAI LINES MEXICO, S.A. DE C.V. Mexico Transportation and shipping agency services 12,213 12,213 3,955,406 99.00 % 144,509 (7,114) (7,043) Indirect subsidiary (Note 3) 〞 EXPRESS PORT MANZANILLO SA DE CV Mexico Container yard business 30,820 — 16,914,806 49.00 % 46,775 32,223 15,789 Equity method WHL INTL. WANHAI LINES ECUADOR S.A. Ecuador Transportation and shipping agency services 178 178 1,000 1.00 % 200 15,491 155 Indirect subsidiary (Note 3) 〞 Wan Hai Lines (UAE) LLC. Arab Emirates. Transportation and shipping agency services 1,365 1,365 147 49.00 % 60,854 14,130 6,924 Equity method 〞 Infinite Marine Investment Co., Ltd. Cayman Islands Investment 173,463 173,463 5,550,000 100.00 % 4,717 (324) (324) Indirect subsidiary (Note 3) 〞 Wan Hai Lines (India) PVT Ltd. India Transportation and shipping agency services 69 69 10,000 100.00 % 548,792 11,444 11,444 Indirect subsidiary (Note 3) 〞 WAN HAI LINES PERU S.A.C. Peru Transportation and shipping agency services 145 145 3,001 1.00 % 674 23,917 239 Indirect subsidiary (Note 3) 〞 WAN HAI LINES MEXICO, S.A. DE C.V. Mexico Transportation and shipping agency services 389 389 39,954 1.00 % 1,460 (7,114) (71) Indirect subsidiary (Note 3) BI Bravely (Myanmar) Transport and Logistics Company Limited Myanmar Managing container, storage and logistics services 127,584 127,584 4,000,000 80.00 % 60,157 4,654 3,723 Indirect subsidiary (Note 3) WHL USA Wan Hai Lines (Arizona) LLC America House rental and management 359,760 359,760 — 100.00 % 397,429 (187) (187) Indirect subsidiary ( N o t e 1 、 3 ) WHL India WH LOGISTICS PRIVATE LIMITED India Managing container, storage and logistics services 6,888 6,888 1,850,000 50.00 % 6,478 147 74 Equity method HE CHUN PHU HUNG MARITIME SERVICE COMPANY LIMITED Vietnam Container yard business 2,418 2,418 — 50.00 % 17,903 30,819 15,409 Equity method (Note 1) WHL Thailand WGD Container Service (Thailand) Co., Ltd. Thailand Container yard business 14,101 14,101 160,000 16.00 % 15,728 12,741 2,039 Subsidiary ( N o t e 3 、 4 ) Name of the investor Name of investee Location Major operations Initial investment amount Ending balance Net income (loss) of the investee Investment income (losses) Notes Ending balance Beginning balance Shares Ratio of shares Book value Note 1: Limited companies with no common shares issued. Note 2: The difference is due to the unrealized gain /loss. Note 3: Eliminated in the consolidated financial statements. Note 4: The recognition of investment gains and losses in the current period is based on the financial reports of investment companies that have been reviewed by accountants during the same period. (c) Information on investment in Mainland China 1. Information on investment in Mainland China: Guangzhou Wan Hai Information Technology Ltd. Information technology services 7,922 (2) — — — — (4,700) 100.00 % (4,700) 23,374 — Shenzhen Uniwin International Logistics Ltd. Freight transportation and acting as agent for transport affairs 644,016 (2) — — — — 25,193 100.00 % 25,193 912,264 49,878 Blue Ocean Logistics (Shanghai) Ltd. Containers, storage and international transportation services 32,596 (2) — — — — 7,910 100.00 % 7,910 164,555 22,936 Clipper International Shipping Agency Ltd. International shipping agency services 4,295 (2) — — — — 7,974 100.00 % 7,974 101,756 — Shenzhen Yong Chun International Shipping Management Co., Ltd. International shipping management 29,068 (2) — — — — 1,940 90.00 % 1,746 46,861 — Name of the investee in Mainland China Major operations Issued capital Method of investment (Note 1) Beginning remittance balance- Cumulative investment (amount) from Taiwan Current remittance/ recoverable investment (amount) Ending remittance balance- Cumulative investment (amount) from Taiwan Net income (loss) of the investee Direct/ indirect shareholding (%) by the Company Current investment gains and losses (Note 2) Carrying Amount Accumulated Inward Remittance of Earnings Remittance amount Recoverable amount (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 6 5 ～
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Wan Hang Tours Co., Ltd. General sales and entertainment project management 287,330 (2) — — — — 12,062 50.00 % 6,031 105,994 — QINGDAO PORT AND WIN INTERNATIONA L LOGISTICS CO., LTD. Container yard station 50,188 (2) — — — — 18,055 50.00 % 9,027 74,586 56,707 Name of the investee in Mainland China Major operations Issued capital Method of investment (Note 1) Beginning remittance balance- Cumulative investment (amount) from Taiwan Current remittance/ recoverable investment (amount) Ending remittance balance- Cumulative investment (amount) from Taiwan Net income (loss) of the investee Direct/ indirect shareholding (%) by the Company Current investment gains and losses (Note 2) Carrying Amount Accumulated Inward Remittance of Earnings Remittance amount Recoverable amount Note 1: The way of investing: 1. Directly invested in Mainland China. 2. Indirectly invested in Mainland China through investees. 3. Other ways. Note 2: The investment income (loss) recognized in current period was reviewed by the CPA of the Company. 2. Limitation on investment in Mainland China: Aggregate investment amount remitted from Taiwan to Mainland China at the end of the period Investment amount approved by Investment Commission of Ministry of Economic Affairs Limitation on investment in Mainland China by Investment Commission of Ministry of Economic Affairs — 1,131,368 173,397,357 Note: The Company’s investments in Mainland China were mostly from the investees’ self owned capital in indirect subsidiaries. 3. Significant transactions: As of June 30, 2026 , the significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”. (14) Segment Information The segment’s operating results are reviewed regularly by the entity’s chief operating decision maker to make decisions pertaining to the allocation of resources to the segment and to assess its performance for which the discrete financial information is available. Only one reportable segment of the Consolidated Company was identified, and it is mainly associated with shipping operations. Please refer to the consolidated balance sheets and consolidated statements of income for segment profit or loss, segment asset details, and segment liabilities details. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) WAN HAI LINES LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ～ 6 6 ～