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6 September 2016 
1. Change of Fleet: August 5: MV Daiwan Hero (Handy/34,000DWT) joined Wisdom Fleet. August 10: MV Sakizaya Hero (Panamax/80,800DWT) joined Wisdom Fleet. August 23: MV Daiwan Infinity (Handy/34,000DWT) joined Wisdom Fleet. 2. Change in Operation: 4 vessels in dry-dock.
4. Renewal of Contracts: 3 vessels. 5. Operating Income:Operating income reduced due to charterers’ early termination of time charter contract this year. The Company recognized the compensation for early termination as other income and the difference between last contract and current contract caused the reduction of operating income. As a result, other income increased and operating income decreased. 6.Non-operating income: Net Income before Tax decreased comparing with monthly result last year because of the weak shipping market and the appreciation of Japanese Yen which led to foreign exchange loss. However, foreign exchange loss is an unrealized item which does not affect the Company’s cash flow. The Company evaluates foreign exchange gain/loss by the exchange rate at the end of each month, and the loss will be reversed if Yen depreciates afterwards. Besides, there was about US$600,000 loss on the valuation of the put option of the Company’s ECB categorized in other losses. The loss is an unrealized item which does not affect the Company’s cash flow. The Company evaluates ECB by the company’s share price at the end of each month. When the share price rises comparing to the last valuation, the loss will be reversed and gain will be recognized. Notes on Compilation: 1. We adopt IFRS. 2. Our functional currency is US Dollar. The representation of TWD figures are calculated based on the average exchange rate of the relevant period. Evaluation gain or loss is calculated based on the month end exchange rate. 3. Rate of change is calculated with USD figures. 4. Earning per share is calculated based on weighted average of outstanding shares. 5. Depreciation and crew wage costs are calculated on a monthly basis, but revenue is calculated on incurred basis by day. Hence the calendar days of each month could slightly affect revenue and operating profits. 6. The lubricant oil expenses is estimated monthly and adjusted according to inventory check on a quarterly frequency. 7. The duration of each vessel might differ according to size, condition and specifications. Modern new buildings now are normally depreciated on a 25 year duration. 8. The earning release is based on unaudited provisional account. Monthly Net Income before Income Tax Expense reported in the earnings release includes earnings attributable to minority interests. Wisdom Marine Group press release |
