U-MING MARINE ANNUAL REPORT 2021
Table of Contents
Name, Title, Telephone Number, and E-mail Address of the Spokesman
Name:Tsung-Liang , Chang
Title:Senior Vice President
Tel.:+886-2-2737-6008
E-mail:bismark@metro.feg.com.tw
Name, Title, Telephone Number, and E-mail Address of the Acting Spokesman
Name:Chang-Sheng, Chen
Title:Vice President
Tel.:+886-2-2737-6082
E-mail:alexchen@metro.feg.com.tw
Address and Telephone Number of the Company
Address:29F., No. 207, Sec. 2, Dunhua S. Rd., Da'an Dist., Taipei City 106 , Taiwan
Telephone Number:+886-2-2733-8000
Name, Address, Website, and Telephone Number of the Agency Handling Shares Transfer
Name:Oriental Securities Corporation
Address:13F., No. 16, Xinzhan Rd., Banqiao Dist., New Taipei City 220 , Taiwan
Website:www.osc.com.tw
Tel.:+886-2-7753-1699
Name of the Certified Public Accountant who Duly Audited the Annual Financial Report for the Most Recent Fiscal Year, and the Name, Address and Telephone Number of said Person's Accounting Firm.
Name of CPA:Wen-Ching Lin and Yi-Wen Wang
Name of Accounting Firm:Deloitte & Touche
Address:20F., No. 100, Songren Rd., Xinyi Dist., Taipei City 110 , Taiwan
Website:www.deloitte.com.tw
Tel.:+886-2-2725-9988
Name of Any Exchanges where the Company's Securities are Traded Offshore, and the Method by which to Access Information on Said Offshore Securities: No
Official Website:www.uming.com.tw
U-Ming Marine Transport Corp . | |
The 2021 Annual Report | |
Table of Contents | |
ONE. LETTER TO SHAREHOLDERS ........................................................................................... | 1 |
I. INTRODUCTION ............................................................................................................................. | 1 |
II. BUSINESS PERFORMANCE............................................................................................................ | 3 |
III. BUSINESS STRATEGIES AND PROSPECTS .................................................................................... | 5 |
TWO. COMPANY PROFILE ............................................................................................................ | 8 |
I. DATE OF INCORPORATION AND BUSINESS OPERATION.................................................................. | 8 |
II. COMPANY HISTORY..................................................................................................................... | 8 |
THREE. CORPORATE GOVERNANCE REPORT..................................................................... | 18 |
I. ORGANIZATIONAL SYSTEM......................................................................................................... | 18 |
- PROFILE OF THE DIRECTORS, PRESIDENT, VICE PRESIDENTS, JUNIOR VICE PRESIDENTS, AND
HEADS OF VARIOUS DEPARTMENTS AND BRANCHES ............................................................... | 20 |
- REMUNERATION PAID TO DIRECTORS, PRESIDENT, AND VICE PRESIDENT IN THE MOST
RECENT YEAR ......................................................................................................................... | 32 |
IV. CORPORATE GOVERNANCE MANAGEMENT ............................................................................ | 41 |
V. DISCLOSURE OF INDEPENDENT AUDITORS' FEES ..................................................................... | 107 |
VI. CHANGE OF INDEPENDENT AUDITORS.................................................................................... | 108 |
VII. THE COMPANY'S CHAIRMAN, PRESIDENT, OR MANAGERIAL OFFICERS INVOLVED IN | |
FINANCIAL OR ACCOUNTING AFFAIRS BEING EMPLOYED BY THE ACCOUNTING FIRM OR | |
ANY OF ITS ASSOCIATES WITHIN THE MOST RECENT YEAR ................................................... | 109 |
VIII. DETAILS OF SHARES TRANSFERRED AND CHANGES IN EQUITY PLEDGED BY DIRECTORS, | |
MANAGERIAL OFFICERS, AND SHAREHOLDERS WITH MORE THAN 10% SHAREHOLDINGS IN | |
THE MOST RECENT YEAR AND AS OF THE ANNUAL REPORT PUBLICATION DATE .................. | 109 |
IX. INFORMATION ON THE RELATIONSHIPS AMONG TOP-10 SHAREHOLDERS WHO ARE | |
RELATED PARTIES, SPOUSES, OR RELATIVES WITHIN THE SECOND DEGREE OF KINSHIP ...... | 110 |
- INVESTMENTS JOINTLY HELD BY THE COMPANY, THE COMPANY'S DIRECTORS, MANAGERIAL OFFICERS, AND ENTERPRISES DIRECTLY OR INDIRECTLY CONTROLLED BY
THE COMPANY AND WITH THE SHAREHOLDING CALCULATED AGGREGATELY .................... | 113 |
FOUR. CAPITAL OVERVIEW...................................................................................................... | 114 |
I. CAPITAL AND SHARES .............................................................................................................. | 114 |
II. ISSUANCE OF CORPORATE BOND ............................................................................................. | 125 |
III. ISSUANCE OF PREFERRED STOCKS ......................................................................................... | 125 |
IV. ISSUANCE OF GLOBAL DEPOSITARY RECEIPTS (GDR)......................................................... | 125 |
V. ISSUANCE OF EMPLOYEE STOCK WARRANTS ........................................................................... | 125 |
VI. ISSUANCE OF NEW RESTRICTED EMPLOYEE SHARES.............................................................. | 125 |
VII. NEW SHARES ISSUED FOR MERGING OR ACQUIRING SHARES OF OTHER COMPANIES ........... | 125 |
VIII. PROGRESS ON PLANNED USE OF CAPITAL: ........................................................................ | 125 |
FIVE. OPERATIONAL OVERVIEW........................................................................................... | 126 |
I. BUSINESS ACTIVITIES ............................................................................................................... | 126 |
II. MARKET, PRODUCTION, AND SALES OVERVIEW...................................................................... | 135 |
III. EMPLOYEE INFORMATION .................................................................................................... | 143 |
IV. CONTRIBUTION TO ENVIRONMENTAL PROTECTION ............................................................. | 144 |
V. LABOR RELATIONS .................................................................................................................. | 145 |
VI. MAJOR CONTRACTS............................................................................................................... | 152 |
SIX FINANCIAL SUMMARY....................................................................................................... | 155 |
I. CONDENSED BALANCE SHEET AND COMPREHENSIVE INCOME STATEMENT FOR THE LAST | |
FIVE YEARS, AND THE INDEPENDENT AUDITORS' OPINIONS................................................. | 155 |
II. FINANCIAL ANALYSIS FOR THE LAST FIVE YEARS ................................................................... | 161 |
U-MING MARINE ANNUAL REPORT 2021
Table of Contents
III. AUDIT COMMITTEE'S REVIEW REPORT ON THE LATEST FINANCIAL STATEMENTS ............ | 165 |
IV. LATEST FINANCIAL REPORT ................................................................................................. | 166 |
V. LATEST AUDITED STANDALONE FINANCIAL REPORT............................................................. | 114 |
VI. FINANCIAL DIFFICULTIES ENCOUNTERED BY THE COMPANY AND ITS ASSOCIATES IN THE | |
MOST RECENT YEAR AND AS OF THE ANNUAL REPORT PUBLICATION DATE. .................... | 181 |
SEVEN. REVIEW AND ANALYSIS OF FINANCIAL POSITION AND BUSINESS PERFORMANCE, AND | |
RISKS.................................................................................................................................... | 182 |
I. FINANCIAL REVIEW AND ANALYSIS .......................................................................................... | 182 |
II. REVIEW AND ANALYSIS OF FINANCIAL PERFORMANCE ......................................................... | 183 |
III. REVIEW AND ANALYSIS OF CASH FLOW ............................................................................... | 185 |
IV. THE IMPACT OF SIGNIFICANT CAPITAL EXPENDITURES ON THE FINANCIAL BUSINESS IN THE | |
MOST RECENT YEAR ............................................................................................................. | 186 |
V. REVIEW AND ANALYSIS OF REINVESTMENT POLICY IN THE MOST RECENT YEARS.................. | 186 |
VI. RISK ANALYSIS ...................................................................................................................... | 187 |
VII. OTHER MATERIAL ISSUES .................................................................................................... | 195 |
EIGHT. SPECIAL DISCLOSURES.................................................................................................... | 196 |
I. ASSOCIATE INFORMATION........................................................................................................ | 196 |
- PRIVATE PLACEMENT OF SECURITIES IN THE MOST RECENT YEAR AND AS OF THE ANNUAL
REPORT PUBLICATION DATE ................................................................................................. | 203 |
- THE COMPANY'S SHARES HELD OR DISPOSED OF BY SUBSIDIARIES IN THE MOST RECENT
YEAR AND AS OF THE ANNUAL REPORT PUBLICATION DATE ................................................... | 203 |
IV. OTHER SUPPLEMENTARY INFORMATION .............................................................................. | 203 |
V. OCCURRENCE OF THE MATTERS LISTED IN ARTICLE 36, PARAGRAPH 3, SUBPARAGRAPH 2 OF | |
THE SECURITIES AND EXCHANGE ACT AFFECTING SHAREHOLDERS' EQUITY OR SECURITY | |
PRICE IN THE MOST RECENT YEAR OR AS OF THE ANNUAL REPORT PUBLICATION DATE ........ | 203 |
U - M I N G M A R I N E ANNUAL REPORT 2021
ONE. LETTER TO SHAR EHOLDERS
One. Letter to Shareholders
I. Introduction
The recovery of tramp shipping market was gradually underway in 2021 along with the implementation of anti-pandemic measures in many countries and the increase of industrial demand and demand for necessities. Benefited from the governments' expanding the construction of infrastructure to stimulate global economy, including the Biden administration of the United States has launched a comprehensive 10-year infrastructure construction plan for an amount of US$2 trillion and the prevalence of vaccination and easing of pandemic impact, the global economy recovery is expected to accelerate in the future, which is beneficial to the growing demand for dry bulk raw materials. The efficiency of port operations is affected by the pandemic and thus affects the supply of tramp shipping capacity. The Baltic Dry Index (BDI) was climbing and reached the highest of 5,650 points on October 7 for the year, a record high in 13 years with an average of 2,943 points throughout the year, representing an increase of 176% from the year of 2020.
According to the "World Economic Outlook (WEO)" report released by The World Bank in January 2022, the economic growth of the United States and China, the two largest economies in the world, had outperformed what it was prior to the outbreak of the pandemic in 2021. China's economic growth rate was expected to reach 8.0% in 2021, a record high since 2012, and the U.S. economic growth rate was expected to grow 5.6%, a record high since 1985. Emerging markets and developing economies continued to grow strongly with a GDP growth of 6.3% achieved in 2021, of which, India, the 6th largest economy in the world, performed significantly better than expected as a result of increase in tax income, growth in export, increase in retail sales, and increase in electricity demand. India's GDP had grown to 8.3% from the bottom in 2020, in fact, its growth rate significantly outperformed the average of other Asian countries and the overall emerging market. The global economic growth has mostly broken through the poor performance experienced before the pandemic outbreak and achieved a record high. The transformation of the global economic structure and the high contribution of emerging markets have driven the growth momentum of the global economy with the global GDP growth rate achieved as high as 5.5%.
Many provinces and cities in China had successively imposed electricity and production restrictions in September 2021 due to the "energy consumption and intensity dual control system" policy and the intensified conflict between coal supply and demand, added with environmental protection controls, China had experienced a power shortage crisis, and coal prices from major exporting countries also reached a new high. In addition to coal, the impact of China's restricting steel production on the demand for imported iron ore had caused concerns. The blast furnace process has been adopted by many steel mills in China with iron ore used as the raw material. In addition, the production cost of local iron ore was high and the iron content was low; therefore, China continued to increase the import of iron ore that caused the Capesize Bulk Commodity Index (BCI) to go up in October.
China had relied heavily on imported grains due to the outputs of the summer crops affected by the floods in the summer of 2021. According to the statistics of the U.S. Department of Agriculture, China will purchase about 9.5 million tons of corn from the United States during the 2021~2022 corn seasons, a record high of corn import. The 4th quarter was the peak season for the export of grains of the Northern America that activated the freight rate of small and medium-sized ships to rise. The Handymax BSI had reached an average of US$26,770 in 2021, an increase of 224% from the same period last year.
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U-Ming Marine Transport Corp. published this content on 20 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2022 04:54:04 UTC.