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Altek Interim / Quarterly Report 2019

Nov 14, 2019

52290_rns_2019-11-14_4a3ff441-b2d6-48ed-a82c-24c56f14cacc.pdf

Interim / Quarterly Report

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT

ACCOUNTANTS

SEPTEMBER 30, 2019 AND 2018 (Stock Code:3059) 

~1~

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Altek Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Altek Corporation and subsidiaries as of September 30, 2019 and 2018, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including the summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Report by Securities Issuers” and International Accounting Standard 34 “Interim Financial Reporting” as endorsed by Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons 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 auditing standards generally accepted in 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 explained in Note 4(3), the financial statements of certain non-significant consolidated subsidiaries and the information disclosed in Note 13 were based solely on the reports prepared by those subsidiaries which were not reviewed by independent accountants. Those statements reflect total assets of NT$1,569,697 and NT$5,898,888, constituting 11% and 34% of the consolidated total assets, and total liabilities of NT$6,461 and NT$317,181, constituting 0% and 4% of the consolidated total liabilities as of September 30, 2019 and 2018, respectively, and total comprehensive income of (NT$32,344), 

~2~

NT$9,868, (NT$15,716) and NT$109,215, constituting 19%, 4%, 19% and 20% of the absolute values of the consolidated total comprehensive income for the three-month and nine-month periods then ended, respectively.

As described in Note 6(7) to the consolidated financial statements, investments accounted for under equity method had book values both amounting to NT$0 as of September 30, 2019 and 2018, and the related investment income both amounted to NT$0 for the three-month and nine-month periods then ended. These amounts were based solely on the unreviewed financial statements of this investee.

Qualified Conclusion

Based on our reviews, except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain non-significant consolidated subsidiaries and investments accounted for under equity method been reviewed by independent accountants, that we might have become aware of had it not been for the situation described above, 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 September 30, 2019 and 2018, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Li, Tien-Yi

[Tsang, Kwok-Wah ]

For and on behalf of PricewaterhouseCoopers, Taiwan November 4, 2019

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation. 

~3~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The balance sheets as of September 30, 2019 and 2018 are reviewed, not audited)

Assets Notes September30,2019
AMOUNT
%
$
6,930,860
48
-
-
379,976
3
61,239
-
1,117,794
8
40,354
-
4,398
-
900,440
6
133,433
1
3,608
-
9,572,102
66
31,596
-
59,071
1
373,029
3
-
-
3,214,165
22
132,566
1
765,438
5
87,226
1
129,549
1
39,224
-
4,831,864
34
$
14,403,966
100		 December31,2018
AMOUNT
%
$
6,495,017
40
-
-
261,228
2
1,387,222
8
2,414,775
15
31,712
-
683
-
999,212
6
89,451
1
6,141
-
11,685,441
72
23,683
-
114,508
1
-
-
26,768
-
3,376,345
21
-
-
770,551
4
100,142
1
102,696
1
70,336
-
4,585,029
28
$
16,270,470
100		 September30,2018 September30,2018
AMOUNT
$
6,930,860
-
379,976
61,239
1,117,794
40,354
4,398
900,440
133,433
3,608
9,572,102
31,596
59,071
373,029
-
3,214,165
132,566
765,438
87,226
129,549
39,224
4,831,864
$
14,403,966		 AMOUNT
$
6,495,017
-
261,228
1,387,222
2,414,775
31,712
683
999,212
89,451
6,141
11,685,441
23,683
114,508
-
26,768
3,376,345
-
770,551
100,142
102,696
70,336
4,585,029
$
16,270,470		 AMOUNT
$
5,809,297
771,017
-
1,733,389
3,089,810
38,263
1,172
1,049,008
126,902
10,500
12,629,358
10,601
112,668
-
-
3,406,993
-
772,255
105,746
132,039
70,164
4,610,466
$
17,239,824		 %
Current assets
1100
Cash and cash equivalents
1110
Current financial assets at fair
value through profit or loss
1136
Current financial assets at
amortised cost, net
1150
Notes receivable, net
1170
Accounts receivable, net
1200
Other receivables
1220
Current income tax assets
130X
Inventories, net
1410
Prepayments
1470
Other current assets
11XX
Current Assets
Non-current assets
1510
Non-current financial assets at
fair value through profit or loss
1517
Non-current financial assets at
fair value through other
comprehensive income
1535
Non-current financial assets at
amortised cost
1550
Investments accounted for
using equity method
1600
Property, plant and equipment,
net
1755
Right-of-use assets
1760
Investment property, net
1780
Intangible assets, net
1840
Deferred income tax assets
1900
Other non-current assets
15XX
Non-current assets
1XXX
Total assets		 6(1)
6(2)
6(4)
6(5)
6(5)
6(6)
6(2)
6(3)
6(4)
6(7)
6(8)
6(9)
6(10)
6(11)		 34
4
-
10
18
-
-
6
1
-
73
-
1
-
-
20
-
4
1
1
-
27
100

(Continued) 

~4~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The balance sheets as of September 30, 2019 and 2018 are reviewed, not audited)

September30,2019 September30,2019 December31,2018 December31,2018 September30,2018 September30,2018
Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities
2100 Short-term borrowings 6(12) $ 2,210,000 16 $ 1,760,000 11 $ 1,645,000 10
2110 Short-term notes and bills 6(13)
payable 179,882 1 - - 199,814 1
2130 Current contract liabilities 27,581 - - - - -
2150 Notes payable - - 1,049,446 6 1,204,945 7
2170 Accounts payable 1,039,103 7 1,878,509 12 2,707,842 16
2200 Other payables 511,117 4 415,658 3 393,402 2
2230 Current income tax liabilities 46,463 - 58,625 - 47,211 -
2250 Provisions for liabilities - 6(17)
current 27,169 - 35,378 - 36,107 -
2280 Current lease liabilities 6,466 - - - - -
2300 Other current liabilities 182,378 1 223,054 1 228,115 1
21XX Current Liabilities 4,230,159 29 5,420,670 33 6,462,436 37
Non-current liabilities
2540 Long-term borrowings 6(14) - - 600,000 4 600,000 3
2550 Provisions for liabilities - 6(17)
noncurrent 131,318 1 113,115 1 107,907 1
2570 Deferred income tax liabilities 471,255 3 447,061 3 446,294 3
2580 Non-current lease liabilities 95,971 1 - - - -
2600 Other non-current liabilities 30,019 - 28,043 - 28,614 -
25XX Non-current liabilities 728,563 5 1,188,219 8 1,182,815 7
2XXX Total Liabilities 4,958,722 34 6,608,889 41 7,645,251 44
Equity attributable to owners of
parent
Share capital 6(18)
3110 Common stock 2,754,613 19 2,740,113 17 2,740,488 16
Capital surplus 6(19)
3200 Capital surplus 2,281,827 16 2,262,397 14 2,263,050 13
Retained earnings 6(20)
3310 Legal reserve 1,394,151 10 1,381,094 8 1,381,094 8
3320 Special reserve 435,679 3 425,580 3 425,580 3
3350 Unappropriated retained
earnings 2,394,864 17 2,471,973 15 2,449,927 14
Other equity interest 6(21)
3400 Other equity interest ( 431,782 ) ( 3) ( 294,938) ( 2) ( 355,698) ( 2)
31XX Equity attributable to
owners of the parent 8,829,352 62 8,986,219 55 8,904,441 52
36XX Non-controlling interest 615,892 4 675,362 4 690,132 4
3XXX Total equity 9,445,244 66 9,661,581 59 9,594,573 56
Significant contingent liabilities 9
and unrecognised contract
commitments
3X2X Total liabilities and equity $ 14,403,966 100 $ 16,270,470 100 $ 17,239,824 100

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

~5~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan (Expressed in thousands of New Taiwan (Expressed in thousands of New Taiwan (Expressed in thousands of New Taiwan dollars, except earnings dollars, except earnings per share amount) per share amount) per share amount) per share amount)
(UNAUDITED)
Three-monthperiods ended September30 Nine-monthperiods ended September30
2019 2018 2019 2018
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
4000 Sales revenue 6(22) $ 1,575,695 100 $ 3,086,368 100 $ 4,796,484 100 $ 8,877,914 100
5000 Operating costs 6(6)(26)(27) ( 1,308,471) ( 83) ( 2,711,453) ( 88) ( 4,016,577) ( 84) ( 7,846,406) ( 88 )
5900 Net operating margin 267,224 17 374,915 12 779,907 16 1,031,508 12
Operating expenses 6(26)(27)
6100 Selling expenses ( 13,381) ( 1) (
15,848)		 - ( 42,370) ( 1) ( 48,577) ( 1 )
6200 General and administrative
expenses ( 78,817) ( 5) (
86,836) (		 3) ( 233,637) ( 5) ( 251,006) ( 3 )
6300 Research and development
expenses ( 199,141) ( 13) (
219,589) (		 7) ( 595,358) ( 12) ( 609,958) ( 7 )
6450 Expected credit gains(losses) 12(2) ( 1,144) - (
26)		 - 8,058 - ( 1,812) -
6000 Total operating expenses ( 292,483) ( 19) (
322,299) (		 10) ( 863,307) ( 18) ( 911,353) ( 11 )
6900 Operating profit (loss) ( 25,259) ( 2)
52,616		 2 ( 83,400) ( 2)
120,155		 1
Non-operating income and
expenses
7010 Other income 6(23) 56,178 4 43,835 1 144,352 3 134,597 2
7020 Other gains and losses 6(24) 8,638 - 32,428 1 16,915 - 2,592 -
7050 Finance costs 6(25) ( 6,569) - (
6,408)		 - ( 19,679) - ( 18,749) -
7000 Total non-operating
income and expenses 58,247 4 69,855 2 141,588 3 118,440 2
7900 Profit before income tax 32,988 2 122,471 4 58,188 1 238,595 3
7950 Income tax expense 6(28) ( 20,148) ( 1) (
39,772) (		 1) ( 38,453) ( 1) ( 68,716) ( 1 )
8200 Profit for the period $
12,840		 1 $
82,699		 3 $
19,735		 - $
169,879		 2

(Continued) 

~6~

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

(UNAUDITED)

Three-monthperiods ended September30 Three-monthperiods ended September30 Three-monthperiods ended September30 Three-monthperiods ended September30 Three-monthperiods ended September30 Nine-monthperiods ended September Nine-monthperiods ended September Nine-monthperiods ended September Nine-monthperiods ended September 30
2019 2018 2019 2018
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
Other comprehensive income
Components of other
comprehensive income that will
not be reclassified to profit or
loss
8316 Unrealised losses from 6(3)
financial assets measured at
fair value through other
comprehensive income ($
57,201) (		 4) ($ 12,169) ( 1) ($
54,465) (		 1) ($ 13,429)
-
8349 Income tax related to 6(28)
components of other
comprehensive income that
will not be reclassified to
profit or loss ( 35) - ( 726) - 197 - ( 845) -
8310 Components of other
comprehensive income that
will not be reclassified to
profit or loss ( 57,236) ( 4) ( 12,895) ( 1) ( 54,268) ( 1) ( 14,274) -
Components of other
comprehensive income that will
be reclassified to profit or loss
8361 Currency translation
differences of foreign
operations ( 159,587) ( 10) ( 187,229) ( 6) ( 63,701) ( 1) ( 40,598)
-
8399 Income tax relating to the 6(28)
components of other
comprehensive income 31,517 2 37,309 1 13,510 - 20,300 -
8360 Components of other
comprehensive loss that
will be reclassified to profit
or loss ( 128,070) ( 8) ( 149,920) ( 5) ( 50,191) ( 1) ( 20,298) -
8300 Total other comprehensive loss
for the period ($ 185,306) ( 12) ($ 162,815) ( 6) ($ 104,459) ( 2) ($ 34,572) -
8500 Total comprehensive loss for the
period ($ 172,466) ( 11) ($ 80,116) ( 3) ($ 84,724) ( 2) $ 135,307 2
Profit (loss), attributable to:
8610 Owners of the parent $
38,260		 3 $ 80,015 3 $
83,052		 1 $ 109,062 1
8620 Non-controlling interest ( 25,420) ( 2) 2,684 - ( 63,317) ( 1) 60,817 1
Profit for the period $ 12,840 1 $ 82,699 3 $ 19,735 - $ 169,879 2
Comprehensive (loss) income
attributable to:
8710 Owners of the parent ($
145,043) (		 9) ($ 82,117) ( 3) ($
25,254) (		 1) $ 64,754 1
8720 Non-controlling interest ( 27,423) ( 2) 2,001 - ( 59,470) ( 1) 70,553 1
Total comprehensive income
(loss) for the period ($ 172,466) ( 11) ($ 80,116) ( 3) ($ 84,724) ( 2) $ 135,307 2
9750 Basic earnings per share 6(29) $ 0.14 $ 0.29 $ 0.30 $ 0.40
9850 Diluted earnings per share 6(29) $ 0.14 $ 0.29 $ 0.30 $ 0.40

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

~7~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated) (UNAUDITED)

Nine-month period ended September Notes Equitya ttr ibutable to owners of th e parent parent parent Non-controlling
interest		 Total equity
Common stock Additional paid-in
capital		 RetainedEarnings Otherequityinterest Treasurystocks Total
Legal reserve Special reserve Unappropriated
retained earnings
d		 Currency translation
ifferences of foreign
operations		 Total Unrealised
gains (losses) from
financial assets
measured at fair
value through other
comprehensive
income
6(21)
6(21)
6(20)
6(16)(18)(19)(21)
6(18)(19)
6(16)(18)(19)(21)
6(21)
6(20)
6(16)(21)
6(16)(18)(19)(21)



$
2,738,188
-
2,738,188
-
-
-
-
-
-
3,200
-
(
900 )
-
$
2,740,488
$
2,740,113
-
-
-
-
-
-
-
14,500
$
2,754,613		 $
2,256,692
-
2,256,692
-
-
-
-
-
-
6,624
1,246
(
1,512 )
-
$
2,263,050
$
2,262,397
-
-
-
-
-
-
-
19,430
$
2,281,827		 $ 1,379,754
-
1,379,754
-
-
-
1,340
-
-
-
-
-
-
$ 1,381,094
$ 1,381,094
-
-
-
13,057
-
-
-
-
$ 1,394,151		 $
142,456
-
142,456
-
-
-
-
283,124
-
-
-
-
-
$
425,580
$
425,580
-
-
-
-
10,099
-
-
-
$
435,679		 $
2,737,026
23,600
2,760,626
109,062
(
119 )
108,943
(
1,340 )
(
283,124 )
(
135,178 )
-
-
-
-
$
2,449,927
$
2,471,973
83,052
-
83,052
(
13,057 )
(
10,099 )
(
137,005 )
-
-
$
2,394,864







($
283,124 )
-
(
283,124 )
-
(
30,034 )
(
30,034 )
-
-
-
-
-
-
-
($
313,158 )
($
256,833 )
-
(
54,038 )
(
54,038 )
-
-
-
-
-
($
310,871 )









($
19,215 )
(
23,600 )
(
42,815 )
-
(
14,155 )
(
14,155 )
-
-
-
12,018
-
2,412
-
($
42,540 )
($
38,105 )
-
(
54,268 )
(
54,268 )
-
-
-
5,392
(
33,930 )
($
120,911 )
($
96,138 )
-
(
96,138 )
-
-
-
-
-
-
-
96,138
-
-
$
-
$
-
-
-
-
-
-
-
-
-
$
-		 $
8,855,639
-
8,855,639
109,062
(
44,308 )
64,754
-
-
(
135,178 )
21,842
97,384
-
-
$
8,904,441
$
8,986,219
83,052
(
108,306 )
(
25,254 )
-
-
(
137,005 )
5,392
-
$
8,829,352









$
629,586
-
629,586
60,817
9,736
70,553
-
-
-
-
-
-
(
10,007 )
$
690,132
$
675,362
(
63,317 )
3,847
(
59,470 )
-
-
-
-
-
$
615,892		 $
9,485,225
-
9,485,225
169,879
(
34,572 )
135,307
-
-
(
135,178 )
21,842
97,384
-
(
10,007 )
$
9,594,573
$
9,661,581
19,735
(
104,459 )
(
84,724 )
-
-
(
137,005 )
5,392
-
$
9,445,244

30, 2018
Balance at January 1, 2018
Effects of retrospective application
Equity at beginning of period after
adjustments
Profit for the period
Other comprehensive income
(loss) for the period
Total comprehensive income (loss)
Appropriation of 2017 earnings
Legal reserve
Special reserve
Cash dividends
Share-based payment transactions
Treasury stock sold to employees
Retirement of employee restricted
shares
Non-controlling interest
Balance at September 30, 2018
Nine-month period ended September

30, 2019
Balance at January 1, 2019
Profit (loss) for the period
Other comprehensive income
(loss) for the period
Total comprehensive income (loss)
Appropriation of 2018 earnings
Legal reserve
Special reserve
Cash dividends
Share-based payment transactions
Restricted stock
Balance at September 30, 2019

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

~8~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation

Amortisation

Expected credit losses (gains)

Net gain on financial assets at fair value through
profit or loss

Interest expense

Interest income

Dividend income

Share-based payment compensation cost

Reversal of impairment loss on investments
accounted for under the equity method

(Gain) loss on disposal of property, plant and
equipment

Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit
or loss
Contract assets
Notes receivable
Accounts receivable
Other receivables
Inventories
Prepayments
Other current assets
Changes in operating liabilities
Current contract liabilities
Notes payable
Accounts payable
Other payables
Provisions for liabilities
Other current liabilities
Other non-current liabilities
Cash inflow (outflow) generated from
operations
Interest received
Dividends received
Interest paid
Income tax paid
Net cash flows from (used in) operating
activities		 Nine-month periods ended September 30
Notes
2019
2018
$
58,188 $
238,595
6(8)(9)(10)(26)
150,519
168,804
6(11)(26)
17,220
21,967
12(2)
(
8,058 )
1,812
6(2)(24)
(
8,150 ) (
1,281 )
6(25)
19,679
18,749
6(23)
(
110,751 ) (
89,498 )
6(23)
(
763 ) (
915 )
6(16)(27)
5,392
14,799
6(24)
(
651 )
-
6(24)
(
84 )
1,370
- (
184,937 )
- (
857 )
1,340,123 (
1,764,450 )
1,317,767 (
808,314 )
17,250 (
14,947 )
83,877
91,921
(
45,108 )
47,990
2,541
5,390
27,660
-
(
1,061,219 )
1,217,207
(
830,265 )
686,456
(
39,707 ) (
12,833 )
10,459
20,649
(
40,734 )
46,515
76
90
905,261 (
295,718 )
84,370
84,299
763
915
(
18,496 ) (
17,153 )
(
43,156 ) (
59,846 )
928,742 (
287,503 )

(Continued) 

~9~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortised cost
Proceeds from disposal of financial assets at fair
value through profit or loss
Proceeds from capital reduction of investments
accounted for under the equity method
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Increase in intangible assets

Acquisition of investment property
Increase in deposits-out
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Repayment of short-term borrowings

Proceeds from issuance of short-term notes and bills
payable

Repayment of short-term notes and bills payable

Increase in long-term borrowings

Repayment of long-term borrowings

Increase (decrease) in deposits-in

Lease liabilities principal repayment

Cash dividends for capital surplus

Employee stock options exercised
Treasury shares sold to employees
Net cash flows from financing activities
Effect of exchange rate
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period
 Nine-month periods ended September 30
Notes
2019
2018
($
514,435 ) $
-
237
-
27,529
-
6(31)
(
12,511 ) (
27,961 )
197
42,140
6(31)
(
4,131 ) (
6,692 )
- (
8,000 )
(
890 ) (
4,651 )
(
504,004 ) (
5,164 )
6(32)
450,000
-
6(32)
- (
376,000 )
6(32)
479,580
798,756
6(32)
(
300,000 ) (
800,000 )
6(32)
-
600,000
6(32)
(
600,000 )
-
6(32)
2,241 (
3,233 )
6(32)
(
5,967 )
-
6(20)
- (
135,178 )
-
9,824
-
94,603
25,854
188,772
(
14,749 )
38,210
435,843 (
65,685 )
6(1)
6,495,017
5,874,982
6(1)
$
6,930,860 $
5,809,297

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

~10~

ALTEK CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated) (Unaudited)

1. HISTORY AND ORGANIZATION

Altek Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the development, manufacturing and sale of digital image technology application, and related export and import trade.

The Company was listed in the Taiwan Stock Exchange on December 24, 2002, as approved by the TaiTz (91) Letter No. 024976 of the former Securities and Futures Commission, Ministry of Finance, R.O.C., dated September 27, 2002.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were reported to the Board of Directors and issued on November 4, 2019.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

  • (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC effective from 2019 are as follows:
follows:
New Standards,Interpretations and Amendments Effective date by
International Accounting
Standards Board
Amendments to IFRS 9, ‘Prepayment features with negative compensation’
IFRS 16, ‘Leases’
Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’
Amendments to IAS 28, ‘Long-term interests in associates and joint ventures’
IFRIC 23, ‘Uncertainty over income tax treatments’
Annual improvements to IFRSs 2015-2017 cycle		 January 1, 2019
January 1, 2019
January 1, 2019
January 1, 2019
January 1, 2019
January 1, 2019

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. 

~11~

IFRS 16, ‘Leases’

  • A. IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard requires lessees to recognise a 'right-of-use asset' and a lease liability (except for those leases with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors.

  • B. The Group has elected to apply IFRS 16 by not restating the comparative information (referred herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as endorsed by the FSC. Accordingly, the Group increased both ‘right-of-use asset’ and ‘lease liability’ by $107,196 on January 1, 2019.

  • C. The Group has used the following practical expedients permitted by the standard at the date of initial application of IFRS 16:

  • (a) Reassessment as to whether a contract is, or contains, a lease is not required, instead, the application of IFRS 16 depends on whether or not the contracts were previously identified as leases applying IAS 17 and IFRIC 4.

  • (b) The accounting for operating leases whose period will end before December 31, 2019 are treated as short-term leases and accordingly, rent expense of $6,456 was recognised in the third quarter of 2019.

  • (c) The exclusion of initial direct costs for the measurement of ‘right-of-use asset’.

  • (d) The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

  • D. The Group calculated the present value of lease liabilities by using the weighted average incremental borrowing interest rate range from 1.1% to 1.25%.

  • E. The Group recognised lease liabilities which had previously been classified as ‘operating leases’ under the principles of IAS 17, ‘Leases’. The reconciliation between operating lease commitments under IAS 17 measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate and lease liabilities recognised as of January 1, 2019 is as follows: 

~12~
Operating lease commitments disclosed by applying IAS 17 as at
December 31, 2018 $ 44,230
Less: Short-term leases ( 425)
Add: Adjustments as a result of a different treatment of
extension and termination options 83,294
Total lease contracts amount recognised as lease liabilities by applying
IFRS 16 on January 1, 2019 127,099
Incremental borrowing interest rate at the date of
initial application 1.1%~1.25%
Lease liabilities recognised as at January 1, 2019 by applying IFRS 16 $ 107,196

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

follows:
New Standards,Interpretations and Amendments Effective date by
International Accounting
Standards Board
Amendment to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of
Material’
Amendments to IFRS 3, ‘Definition of a business’		 January 1, 2020
January 1, 2020

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed by the FSC are as follows:
New Standards,Interpretations and Amendments Effective date by
International Accounting
Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets
between an investor and its associate or joint venture’
IFRS 17, ‘Insurance contracts’		 To be determined by
International Accounting
Standards Board
January 1, 2021

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. 

~13~

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2018, except for the compliance statement, basis of preparations, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

  • A. The consolidated financial statements of the Group have been prepared in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and IAS 34, ‘Interim Financial Reporting’ as endorsed by the FSC.

  • B. The consolidated financial statements should be read together with the 2018 consolidated financial statements.

(2) Basis of preparation

  • A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

  • (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

  • (b) Financial assets at fair value through other comprehensive income.

  • (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

  • B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

  • A. Basis for preparation of consolidated financial statements:

  • Basis for preparation of consolidated financial statements is consistent with the 2018 consolidated financial statements. 

~14~

B. Subsidiaries included in the consolidated financial statements:

Name of Investor Name ofSubsidiaries Main Business Activities Ownership (%) Note
September30,2019 December31,2018 September30,2018
Altek Corporation
"
"
"
Altek International Investment Co., Ltd.
"
"
"
Note 1
Note 1
Note 1
Note 1
Note 2
Altek Semiconductor (Cayman) Co., Ltd.
"
Note 1		 Altek International Investment Co., Ltd.
Altek Japan Corporation
Altek Investment Co., Ltd.
Altek International Holding (BVI) Co.,Ltd.
Altek Lab Inc.
Altek Optical (Cayman) Co., Ltd.
Altek Semiconductor (Cayman) Co., Ltd.
Altek International Trading Co., Ltd.
Altek (Kunshan) Co., Ltd.
Altek EMS (Kunshan) Co., Ltd.
Altek Precision (Kunshan) Co., Ltd.
Altek Trading (Shanghai) Limited
Altek Biotechnology Corporation
Altek Semiconductor Corporation
Altek Semiconductor (Shanghai) Co., Ltd.
Altek Optical Technology (Kunshan) Co.,
Ltd.		 Investments
Sales of optical instruments
Investments
Investments
Design service
Investments
Investments
Investments and general business operations
Manufacture and sales of digital still camera and its
accessories
Manufacture and sales of related engineering services
Manufacture and sales of digital camera parts
Wholesale, import and export of related electronic and
their associated accessories
Research and development, manufacture and sales of
medical electronic equipments
Research design and sales of ASIC
Research design and sales of imaging technologies,
electronic software and hardware
Manufacture and sales of related electronic services
and its accessories and optical components		 100
100
-
100
100
100
50
100
100
100
100
100
100
100
100
100		 100
100
100
100
100
100
50
-
100
100
100
100
100
100
100
100		 100
100
100
100
100
100
50
-
100
100
100
100
100
100
100
100		 -
Note 4
Note 3、Note 4
Note 4
Note 4
Note 4
-
Note 4、Note 6
-
Note 4
Note 4
Note 4
Note 4
Note 5
Note 4
Note 4

Note 1: Invested by Leading Tech. Co., Ltd., Toptek Investment Cayman Co., Ltd., Altek Imaging Technology (Cayman) Co., Ltd., Altek Trading (Cayman) Co., Ltd., Altek Optical Technology (Cayman) Co., Ltd., which are wholly owned by Altek International Investment Co., Ltd.

Note 2: Invested by Altek Biotechnology Holding (Cayman) Co., Ltd., which is wholly owned by Altek International Holding (BVI) Co., Ltd.

Note 3: The dissolution and liquidation of Altek Investment Co., Ltd. was resolved by the Board of Directors on December 17, 2018. Moreover, the liquidation was completed as approved by the court on April 25, 2019. Note 4: As the subsidiaries did not meet the definition of significant subsdiaries, the financial statements as of September 30,2019 and 2018 were not reviewed by independent accountants. Note 5: As the subsidiaries met the definition of significant subsdiaries in 2018, the financial statements as of September 30,2018 were reviewed by independent accountants. Note 6: It was invested by Altek International Investment Co., Ltd., and was incorporated in July 2019. 

~15~

  • C. Subsidiaries not included in the consolidated financial statements: None.

  • D. Adjustments for subsidiaries with different balance sheet dates: None.

  • E. Significant restrictions: None.

  • F. Subsidiaries that have non-controlling interests that are material to the Group: None.

  • (4) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities Effective 2019

  • A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

  • B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate.

    • Lease payments are comprised of the fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

  • C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; and

    • (b) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(5) Employee benefits

Pension-Defined benefit plans

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly. 

~16~

(6) Income tax

  • A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

  • B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION

UNCERTAINTY

There have been no significant changes as of September 30, 2019. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2018.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
0
Cash on hand
Checking accounts and demand
deposits
Time deposits
Total		 September 30,2019
827
$ 329,836
6,600,197
6,930,860
$		 December 31,2018
1,070
$ 933,058
5,560,889
6,495,017
$		 September 30,2018
1,020
$ 681,008
5,127,269
5,809,297
$

  • A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

  • B. The Group has no cash and cash equivalents pledged to others.

(2) Financial assets at fair value through profit or loss

Items
Current items:
Beneficiary certificates
Valuation adjustment
Total
Non-current items:
Unlisted stocks
Valuation adjustment
Total		 September 30,2019
-
$ -
-
$ 10,312
$ 21,284
31,596
$		 December 31,2018
September 30,2018
-
$ 766,682
$ -
4,335
-
$ 771,017
$ 12,731
$ 16,647
$ 10,952
6,046)
(
23,683
$ 10,601
$		 September 30,2018
766,682
$ 4,335
771,017
$
10,601
$		 
~17~
  • A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:
Equity instruments
Beneficiary certificates
Total
Equity instruments
Beneficiary certificates
Total		 For the three-month
period ended
September 30,2019
2,032
$ -
2,032
$ For the nine-month
period ended
September 30,2019
8,150
$ -
8,150
$		 For the three-month
period ended
September 30,2018
-
$ 866
866
$
For the nine-month
period ended
September 30,2018
-
$ 2,508
2,508
$

  • B. As of September 30, 2019, December 31, 2018, and September 30, 2018, no financial assets measured at cost held by the Group were pledge to others.

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

Items September 30,2019 December 31,2018 September 30,2018
Non-current items：
Equity instruments
Unlisted stocks $ 149,152
 $ 150,124
 $ 149,697
Valuation adjustment ( 90,081) ( 35,616) ( 37,029)
$ 59,071 $ 114,508 $ 112,668

  • A. The Group has elected to classify strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $59,071, $114,508, and $112,668, respectively, as at September 30, 2019, December 31, 2018, and September 30, 2018.

  • B. The Group recognized fair value change in other comprehensive loss of ($57,201) and ($12,169) for the three-month periods ended September 30, 2019 and 2018, respectively, and of ($54,465) and ($13,429) for the nine-month periods ended September 30, 2019 and 2018, respectively.

  • C. As at September 30, 2019, December 31, 2018 and September 30, 2018, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was $59,071, $114,508 and $112,668, respectively.

  • D. As at September 30, 2019, December 31, 2018 and September 30, 2018, no non-current financial assets at fair value through other comprehensive income held by the Group were pledged to others. 

~18~

(4) Financial assets at amortised cost

Items
Current items:
Time deposits with maturity
over three months
Non-current items:
Time deposits with maturity
over three months		 September 30,2019
379,976
$ 373,029
$		 December 31,2018
261,228
$ -
$		 September 30,2018
-
$
-
$
  • A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:
below:
Interest income
Interest income		 For the three-month
period ended
September 30,2019
5,038
$ For the nine-month
period ended
September 30,2019
13,053
$		 For the three-month
period ended
September 30,2018
-
$
For the nine-month
period ended
September 30,2018
-
$

  • B. The Group has no financial assets at amortised cost pledged to others.

  • (5) Notes and accounts receivable

B. The Group has no financial assets at amortised cost pledged to others.
Notes and accounts receivable		 B. The Group has no financial assets at amortised cost pledged to others.
Notes and accounts receivable
A. The ageing analysis of accounts and notes receivable that were past due but not impaired is as
follows:
項
目
September 30,2019
December 31,2018
September 30,2018
Notes receivable
61,239
$ 1,387,222
$ 1,733,389
$ Accounts receivable
1,124,838
$ 2,430,654
$ 3,099,503
$ Less: Allowance for uncollectible
accounts
7,044)
(
15,879)
(
9,693
(
1,117,794
$ 2,414,775
$ 3,089,810
$ Notes
Accounts
Notes
Accounts
Notes
Accounts
receivable
receivable
receivable
receivable
receivable
receivable
Not overdue
61,239
$ 1,049,743
$ 1,387,222
$ 2,146,832
$ 1,733,389
$ 2,909,681
$ Up to 30 days
-
13,381
-
67,351
-
77,636
31 to 90 days
-
12,968
-
174,273
-
21,024
91 to 180 days
-
39,147
-
29,761
-
25
Over 181 days
-
9,599
-
12,437
-
91,137
61,239
$ 1,124,838
$ 1,387,222
$ 2,430,654
$ 1,733,389
$ 3,099,503
$ September 30,2018
December 31,2018
September 30,2019		 September 30,2018
1,733,389
$
Notes
receivable
1,733,389
$ -
-
-
-
1,733,389
$		 Accounts
receivable
2,909,681
$ 77,636
21,024
25
91,137
3,099,503
$

The above ageing analysis was based on past due date. 

~19~

  • B. As at September 30, 2019, December 31, 2018 and September 30, 2018, the balances of receivables (including notes receivable) all from contracts with customers.

  • C. The Group’s notes and accounts receivable does not hold any collateral as security.

  • D. As at September 30, 2019, December 31, 2018 and September 30, 2018, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable was $61,239, $1,387,222 and $1,733,389, respectively. The maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable was $1,117,794, $2,414,775 and $3,089,810, respectively.

  • E. Information relating to credit risk of notes receivables and accounts receivables is provided in Note 12(2).

(6) Inventories

12(2).
Inventories
Raw materials
Work-in-process
Finished goods
Total
Raw materials
Work-in-process
Finished goods
Total
Raw materials
Work-in-process
Finished goods
Total		 September 30,2019
Allowance for
Cost
valuation loss
601,503
$ 34,819)
($ 214,101
5,468)
(
148,349
23,226)
(
963,953
$ 63,513)
($ December 31,2018		 Book value
566,684
$ 208,633
125,123
900,440
$
Allowance for
Cost
valuation loss
688,388
$ 34,641)
($ 95,968
7,558)
(
268,788
11,733)
(
1,053,144
$ 53,932)
($ September 30,2018		 Book value
653,747
$ 88,410
257,055
999,212
$
Allowance for
Cost
valuation loss
781,528
$ 33,427)
($ 153,574
16,684)
(
172,410
8,393)
(
1,107,512
$ 58,504)
($		 Book value
748,101
$ 136,890
164,017
1,049,008
$		 
~20~

The cost of inventories recognized as expense for the periods:

For the three-month For the three-month For the three-month
period ended period ended
September 30,2019 September 30,2018
Cost of goods sold $ 1,309,823
 $ 2,705,071
(Gain on reversal of) Loss on decline in market
value ( 1,352) 6,382
Total $ 1,308,471 $ 2,711,453
For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Cost of goods sold $ 4,006,996
 $ 7,851,483
Loss on (gain on reversal of ) decline in market
value 9,581 ( 5,077)
Total $ 4,016,577 $ 7,846,406

For the three-month period ended September 30, 2019 and for the nine-month period ended September 30 2018, the Group reversed from a previous inventory write-down and accounted for as reduction of operating cost because inventory that has been appropriated as loss on decline in market value was partially sold.

(7) Investments accounted for under the equity method

- September 30,2019 December 31,2018 September 30,2018
JinJing Optical Technology Co., Ltd. $ 17,109
 $ 44,524
 $ 44,028
Less: Accumulated impairment loss ( 17,109) ( 17,756) ( 44,028)
$ - $ 26,768 $ -

The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarized below:

As of September 30, 2019, December 31, 2018 and September 30, 2018, the carrying amount of the Group’s individually immaterial associates amounted to $0, $26,768 and $0, respectively.

Income for the period from continuing
operations
Other comprehensive loss - net of tax
Total comprehensive income		 For the nine-month
period ended
September 30,2019
51
$ -
51
$		 For the nine-month
period ended
September 30,2018
113,623
$ -
113,623
$		 
~21~

(8) Property, plant and equipment

At January 1
Cost
Accumulated depreciation
Opening net book amount
Additions
Disposals
Reclassifications
Depreciation charge
Net exchange differences
Closing net book amount
At September 30
Cost
Accumulated depreciation		 2019
Construction in
progress and
Buildings and
prepayment for
Land
structures
Machinery
Test equipment
equipment
Others
Total
468,684
$ 3,316,999
$ 1,089,739
$ 157,605
$ 10,459
$ 461,630
$ 5,505,116
$ -
765,750)
(
768,358)
(
151,959)
(
-
442,704)
(
2,128,771)
(
468,684
$ 2,551,249
$ 321,381
$ 5,646
$ 10,459
$ 18,926
$ 3,376,345
$ 468,684
$ 2,551,249
$ 321,381
$ 5,646
$ 10,459
$ 18,926
$ 3,376,345
$ -
2,335
1,871
170
7,281
1,176
12,833
-
-
-
54)
(
-
59)
(
113)
(
-
9,094
-
-
9,481)
(
387
-
-
66,138)
(
61,775)
(
2,631)
(
-
8,687)
(
139,231)
(
-
31,114)
(
4,315)
(
22)
(
162)
(
56)
(
35,669)
(
468,684
$ 2,465,426
$ 257,162
$ 3,109
$ 8,097
$ 11,687
$ 3,214,165
$ 468,684
$ 3,286,729
$ 1,067,387
$ 155,153
$ 8,097
$ 420,724
$ 5,406,774
$ -
821,303)
(
810,225)
(
152,044)
(
-
409,037)
(
2,192,609)
(
468,684
$ 2,465,426
$ 257,162
$ 3,109
$ 8,097
$ 11,687
$ 3,214,165
$		 
~22~

2018

At January 1
Cost
Accumulated depreciation
Opening net book amount
Additions
Disposals
Reclassifications
Depreciation charge
Net exchange differences
Closing net book amount
At September 30
Cost
Accumulated depreciation		 Construction in
progress and
Buildings and
prepayment for
Land
structures
Machinery
Test equipment
equipment
Others
Total
468,684
$ 3,353,156
$ 1,366,032
$ 170,311
$ -
$ 533,260
$ 5,891,443
$ -
685,644)
(
903,610)
(
158,744)
(
-
494,657)
(
2,242,655)
(
468,684
$ 2,667,512
$ 462,422
$ 11,567
$ -
$ 38,603
$ 3,648,788
$ 468,684
$ 2,667,512
$ 462,422
$ 11,567
$ -
$ 38,603
$ 3,648,788
$ -
1,910
-
1,515
9,875
4,320
17,620
-
-
42,316)
(
848)
(
-
346)
(
43,510)
(
-
-
-
-
-
280)
(
280)
(
-
66,841)
(
73,202)
(
5,317)
(
-
18,331)
(
163,691)
(
-
43,620)
(
7,932)
(
72)
(
13)
(
297)
(
51,934)
(
468,684
$ 2,558,961
$ 338,972
$ 6,845
$ 9,862
$ 23,669
$ 3,406,993
$ 468,684
$ 3,298,717
$ 1,080,761
$ 158,604
$ 9,862
$ 474,301
$ 5,490,929
$ -
739,756)
(
741,789)
(
151,759)
(
-
450,632)
(
2,083,936)
(
468,684
$ 2,558,961
$ 338,972
$ 6,845
$ 9,862
$ 23,669
$ 3,406,993
$

A. For the nine-month periods ended September 30, 2019 and 2018, there was no capitalisation of borrowing interests attributable to the property, plant and equipment.

  • B. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8. 
~23~

－ (9) Leasing arrangements lessee

Effective 2019

  • A. The Group leases various assets including land, buildings, and business vehicles. Rental contracts are typically made for periods of 1 to 49 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

  • B. Short-term leases with a lease term of 12 months or less comprise part of buildings and structures. Low-value assets comprise copy machines.

  • C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Low-value assets comprise copy machines.
The carrying amount of right-of-use assets and the depreciation charge are		 as follows:
Land
Buildings
Transportation equipment (Business vehicles)		 September 30,2019
Carryingamount
125,516
$ 3,809
3,241
132,566
$
For the three-month For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30, 2019
Depreciation charge Depreciation charge
Land $ 1,008
 $ 3,037
Buildings 431 1,305
Transportation equipment (Business vehicles) 531 1,833
$ 1,970 $ 6,175
The information on income and expense accounts relating to lease contracts is as follows:
For the three-month For the nine-month
period ended period ended
September 30,2019 September 30, 2019
Items affecting profit or loss
Interest expense on lease liabilities $ 293
 $ 878
Expense on short-term lease contracts 1,986 6,456
Expense on leases of low-value assets 22 82
$ 2,301 $ 7,416

  • D. The information on income and expense accounts relating to lease contracts is as follows:

  • E. For the nine-month period ended September 30, 2019, the Group’s total cash outflow for leases amounted to $12,505. 

~24~

F. Extension and termination options

In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

(10) Investment property

At January 1
Cost
Accumulated depreciation
Opening net book amount
Depreciation charge
Closing net book amount
At September 30
Cost
Accumulated depreciation
At January 1
Cost
Accumulated depreciation
Opening net book amount
Depreciation charge
Closing net book amount
At September 30
Cost
Accumulated depreciation		 2019 
~25~
  • A. Rental income from investment property and direct operating expenses arising from investment property are shown below:
Rental income from investment property
Direct operating expenses arising
from the investment property that
generated rental income during the
period
Rental income from investment property
Direct operating expenses arising
from the investment property that
generated rental income during the
period		 For the three-month
period ended
September 30,2019
6,529
$ 2,076
$ For the nine-month
period ended
September 30,2019
19,599
$ 6,215
$ ~~$~~		 For the three-month
period ended
September 30,2018
6,529
$
2,076
$
For the nine-month
period ended
September 30,2018
19,599
$
6,185
$ ~~$~~

  • B. As at September 30, 2019, December 31, 2018 and September 30, 2018, the fair value of investment property held by the Group all amounted to $870,022. The fair value was valuated by independent valuers. Valuations were made using the comparative approach and income approach of direct capitalization method.

  • C. There was no capitalisation of borrowing interests attributable to investment property.

  • D. Information about the investment property that was pledged to others as collaterals is provided in Note 8. 

~26~

(11) Intangible assets

Intangible assets
2019 2018
At January 1
Cost $ 168,707
 $ 165,921
Accumulated amortisation ( 68,565) ( 44,383)
$ 100,142 $ 121,538
Opening net book amount $ 100,142
 $ 121,538
Additions 3,600 3,801
Amortisation charge ( 17,220)
 ( 21,269)
Net exchange differences 704 1,676
Closing net book amount $ 87,226 $ 105,746
At September 30
Cost $ 169,847
 $ 167,424
Accumulated amortisation ( 82,621) ( 61,678)
$ 87,226 $ 105,746
A. Details of amortisation on intangible assets are as follows:
For the three-month For the three-month
period ended period ended
September 30,2019 September 30,2018
Operating costs $ 42
 $ 240
Operating expense 5,291 6,394
$ 5,333 $ 6,634
For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Operating costs $ 129
 $ 2,473
Operating expense 17,091 18,796
$ 17,220 $ 21,269

B. The Group has no intangible assets pledged to others. 

~27~

(12) Short-term borrowings

(13)
(14)		 Short-term notes and bills payable
Long-term borrowings
September 30, 2019：None.
Type of borrowings
September30,2019
Bank borrowings
Unsecured borrowings
2,210,000
$ Type of borrowings
December 31,2018
Bank borrowings
Unsecured borrowings
1,760,000
$ Type of borrowings
September30,2018
Bank borrowings
Unsecured borrowings
1,645,000
$ September 30,2019
Commercial paper payable
180,000
$ Less: Discount on short-term
notes and bills payable
118)
(
179,882
$ Interest rate ranges
0.999%		 September30,2019 Interest rate range
Collateral
0.9% ~1%
None
Interest rate range
Collateral
1% ~1.0758%
None
Interest rate range
Collateral
1% ~1.13%
None
December 31,2018
September 30,2018
-
$ 200,000
$ -
186)
(
-
$ 199,814
$ -
0.85%		 Interest rate range Collateral
None
Collateral
None
Collateral
None
September 30,2018		 Collateral
2,210,000
$		 0.9% ~1%
Interest rate range		 None
Collateral
December 31,2018
1,760,000
$		 1% ~1.0758%
Interest rate range		 None
Collateral
September30,2018
1,645,000
$
199,814
$
0.85%
Type of borrowings
Secured borrowings
Less: Current portion		 Borrowing period
and repayment term		 Interest rate
range
1.1%~1.25%		 Collateral
Yes
(Note)		 December 31,2018
Borrowing period is
from August 24, 2018 to
May 8, 2021. Revolving
credit facility.		 600,000
$ -
600,000
$		 
~28~

Borrowing period Interest rate Type of borrowings and repayment term range Collateral September 30, 2018 Secured borrowings Borrowing period is from August 24, 2018 to May 8, 2021. Revolving Yes credit facility. 1.1%~1.25% (Note) $ 600,000 - Less: Current portion $ 600,000

During the terms of the unsecured borrowing, in accordance with the unsecured borrowing agreements contracted with bank, the Group is required to maintain the consolidated net value over $8 billion and the debt ratio under 100% based on the annual consolidated financial statements and the semi-annual consolidated financial statements.

Note: Information about collateral for long-term borrowings is provided in Note 8.

(15) Pensions

  • A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

  • (b) For the aforementioned pension plan, the Group recognized pension costs of $0 and $3 for the three-month periods ended September 30, 2019 and 2018, and of $88 and $99 for the nine-month periods ended September 30, 2019 and 2018, respectively.

  • (c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2020 amounts to $12.

  • B. (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. For the three-month periods ended September 30, 2019 and 2018, the Group 

~29~

had recognized pension costs of $7,156 and $7,335, and for the nine-month periods ended September 30, 2019 and 2018, the Group had recognized pension costs of $21,678 and $21,665 respectively, under the above pension scheme.

  • (b) The subsidiaries provided defined contribution plans for its employees. Pursuant to local regulations, such employees and the subsidiaries each make contributions based on a certain percentage based of the salaries and wages to the pension funds. The subsidiaries had recognized pension costs of $4,701 and $6,369 for the three-month periods ended September 30, 2019 and 2018, respectively, and of $15,598 and $20,792 for the nine-month periods ended September 30, 2019 and 2018, respectively.

(16) Share-based payment

  • A. As of September 30, 2019 and 2018, the Company’s share-based payment arrangements were as follows:
follows:
Type of arrangement Grant date Quantity
granted		 Contract
period		 Vesting
conditions
Employee stock options
"
First time issuance of restricted
shares to employees (2015-1)
"
"
First time issuance of restricted
shares to employees (2018-1)
First time issuance of restricted
shares to employees (2019-1)
Treasury stock transferred to
employees		 October 28, 2011
March 21, 2012
November 13, 2015
March 18, 2016
May 5, 2016
August 12,2019
August 12,2019
March 23, 2018		 3,000
3,000
2,440
1,190
370
630
820
3,433		 9.2 years
8.9 years
3 years
3 years
3 years
3 years
3 years
-		 Note 1
Note 1
Note 2, Note 4
Note 2, Note 4
Note 2, Note 4
Note 3, Note 4
Note 3, Note 4
Vested
immediately

  • Note 1: 2 years’ service vest 40%, 3 years’ service vest 70%, 4 years’ service vest 100%.

  • Note 2: The restricted shares were issued at no consideration to the Company’s existing employees whose service years have reached 2 years and 3 years and who achieved the performance requirement. The vested ratio is 50% and 50%, respectively. If employees who are entitled to receive restricted stocks do not meet the vesting conditions, the Company will redeem at no consideration and retire those shares.

  • Note 3: The restricted shares were issued at no consideration to the Company’s existing employees whose service years have reached 1 year, 2 years and 3 years and who achieved the performance requirement. The vested ratio is 40%, 30% and 30%, respectively. If employees who are entitled to receive restricted stocks do not meet the vesting conditions, the Company will redeem at no consideration and retire those shares. 

~30~

  • Note 4: The stocks and dividends distributed to employees during the vesting period shall be given by the Company at no consideration. Employees are not required to return the stocks and dividends if they resign during the vesting period.

  • B. Details of the share-based payment arrangements are as follows:

  • (a) For the nine-month periods ended September 30, 2019 and 2018, the information on the share options and the weighted number of average exercise price of compensation plan employee stock options are as follows:

For the nine-month period For the nine-month period For the nine-month period For the nine-month period For the nine-month period For the nine-month period
ended September 30,2019 ended September 30,2018
Weighted-average Weighted-average
exercise price exercise price
No. of options (in dollars)(Note) No. of options (in dollars)(Note)
Options outstanding at
beginning of the period 1,941 $ 30.61
 2,453 $ 30.62
Option expired ( 180)
 - ( 192)
 -
Options exercised - - ( 320)
 30.70
Options outstanding at end
of the period 1,761 30.60 1,941 30.61
Options exercisable at end
of the period 1,761 30.60 1,941 30.61
Approved and not yet
issued options at the end
of the period - -

  • Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.

  • (b) No stock options were exercised during the three-month and nine-month periods ended September 30, 2019. The weighted-average stock price of stock options at exercise dates for the three-month and nine-month periods ended September 30, 2018 was $34.28 and $33.42, respectively.

  • (c) The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

follows:
Issue date
approved		 Expirydate Exercise price
No. of shares
(in dollars)
(in thousands)
(Note)
920
$ 30.7
841
30.5
September 30,2019		 December Exercise price
(in dollars)
(Note)
$ 30.7
30.5
31,2018		 September 30,2018
No. of shares
(in thousands)
920
841		 No. of shares
(in thousands)
1,100
841		 No. of shares
(in thousands)
1,100
841		 Exercise price
(in dollars)
(Note)
October 28, 2011
March 21, 2012		 December 31, 2020
December 31, 2020		 $ 30.7
30.5
  • Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed. 
~31~
  • (d) The fair value of stock options granted is measured using the Black-Scholes option-pricing model. Relevant information is as follows:
Type of
arrangement		 Grant date Stock
price
(in dollars)		 Exercise
price
(Note)
(in dollars)		 Expected
price
volatility		 Expected
option
life		 Expected
dividends		 Risk-
free
interest
rate		 Fair value
per unit
(in dollars)
Employee stock
options
"		 October 28, 2011
March 21, 2012		 30.65
27.85		 30.7
30.5		 30.27%
33.54%		 5 years
4.9 years		 1.4%
1.4%		 1.18%
1.08%		 7.42
7.35

Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.

  • C. Restricted shares to employees:

The information on restricted shares to employees is as follows:

For the nine-month For the nine-month
period ended period ended
September 30, 2019 September 30, 2018
(share in thousands) (share in thousands)
Shares ungranted beginning balance 715 3,435
Shares granted 1,450 -
Shares exercised ( 715)
 ( 1,718)
Restricted shares forfeited - retired - ( 90)
1,450 1,627

Shares ungranted ending balance

  • D. The weighted average exercise price was $27.64 of treasury stock transferred to employees for the nine-month period ended September 30, 2018.

  • E. Expenses incurred on share-based payment transactions are shown below:

For the three-month For the three-month period ended period ended September 30, 2019 September 30, 2018 $ 3,677 $ 3,726 Equity-settled For the nine-month For the nine-month period ended period ended September 30, 2019 September 30, 2018 Equity-settled $ 5,392 $ 14,799 

~32~

(17) Provisions

At January 1, 2019
Additional provisions
Reversed during the period
Exchange differences
At September 30, 2019
Current
Non-current		 September 30,2019
27,169
$ 131,318
$		 $ (
(
$ December 31,2018
35,378
$ 113,115
$		 Warranty
148,493

21,978
11,519)

465)
158,487
September 30,2018
36,107
$ 107,907
$

The Group gives warranties on digital image technology application products sold. Provision for warranty is estimated based on historical warranty data of digital image technology application products.

(18) Share capital

As of September 30, 2019, the Company’s authorized capital was $5,000,000, consisting of 500,000 thousand shares of ordinary stock, and the paid-in capital was $2,754,613 with a par value of $10 (in dollars) per share.

A. Movements in the number of the Company’s ordinary shares outstanding are as follows:

(Expressed in thousands of shares)

At January 1
Employee stock options exercised
Treasury stock sold to employees
Issuance of restricted stock
Retired restricted shares to employees that
did not meet the vesting conditions
At September 30		 2019
2018
274,011
270,386
-
320
-
3,433
1,450
-
-
90)
(
275,461
274,049

(19) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient. 

~33~
Difference
between
consideration and
carrying amount Changes in Proceeds
Employee of subsidiaries ownership from sales Restricted
Share stock acquired or interests in of treasury shares to
premium options disposed subsidiaries shares employees Total
At January 1, 2019 $ 1,802,659
 $ 49,102
 $ 1,534
 $ 395,774
 $ 1,455
 $ 11,873
 $ 2,262,397
Issuance of restricted stock - - - - - 19,430 19,430
Employee restricted share
exercised 11,873 - - - - ( 11,873)
 -
At September 30, 2019 $ 1,814,532 $ 49,102 $ 1,534 $ 395,774 $ 1,455 $ 19,430 $ 2,281,827
Difference
between
consideration and
carrying amount Changes in Proceeds
Employee of subsidiaries ownership from sales Restricted
Share stock acquired or interests in of treasury shares to
premium options disposed subsidiaries shares employees Total
At January 1, 2018 $ 1,750,223
 $ 51,476
 $ 1,534
 $ 395,774
 $ 209
 $ 57,476
 $ 2,256,692
Employee stock options
exercised 8,108 ( 1,484)
 - - - - 6,624
Treasury stock sold to
employees - - - - 1,246 - 1,246
Employee restricted share
exercised 28,738 - - - - ( 28,738)
 -
Retirement of employee
restricted shares - - - - - ( 1,512)
 ( 1,512)
At September 30, 2018 $ 1,787,069 $ 49,992 $ 1,534 $ 395,774 $ 1,455 $ 27,226 $ 2,263,050

(20) Retained earnings

  • A. According to the Company’s Articles of Incorporation, the annual earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. Special reserve shall be set aside in accordance with the rules set forth in the Securities and Exchange Act, and distributing the remaining amount as common stockholders’ dividends in accordance with the resolution adopted by the Board of Directors and approved at the stockholders’ meeting.

  • B. The amount of dividends appropriated is based on the Company’s current year’s net income and prior years’ retained earnings, taking into account the Company’s financial structure and future operating plans. The distribution ratio of cash dividends to stock dividends is based on the Company’s funding status, diluted earnings per share and other factors. According to the dividend policy adopted by the Board of Directors, cash dividends shall account for at least 20% of the total dividends distributed. Dividends appropriation shall be resolved by the stockholders at the stockholders’ meeting. 

~34~

  • C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

  • D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

  • (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

  • E. The appropriation of 2018 and 2019 earnings had been resolved at the stockholders’ meeting on June 13, 2019, and June 15, 2018, respectively. Details are summarized below:

Legal reserve
Special reserve
Cash dividends		 Dividends per share
Amount
(in NT dollars)
13,057
$ 10,099
137,005
0.5
$ 160,161
$ 2018		 2017 2017
Amount
13,057
$ 10,099
137,005
160,161
$		 Amount
1,340
$ 283,124
135,178
419,642
$		 Dividends per share
(in NT dollars)
0.5
$

The appropriation of 2018 and 2017 earnings were the same as that approved by the Board of Directors on March 15, 2019 and March 23, 2018, respectively.

  • F. For the information relating to employees’ compensation and directors’ and supervisors’ remuneration, please refer to Note 6(27). 
~35~

(21) Other equity items

Other equity items
Foreign currency Unrealized
translation losses on Unearned
adjustment valuation compensation Total
At January 1, 2019 ($ 256,833)
 ($ 36,390)
 ($ 1,715)
 ($ 294,938)
Valuation adjustment - ( 54,268)
 - ( 54,268)
Currency translation differences:
-Group ( 54,038)
 - - ( 54,038)
Issuance of restricted stock - - ( 33,930)
 ( 33,930)
Share-based payment transactions - - 5,392 5,392
At September 30, 2019 ($ 310,871) ($ 90,658) ($ 30,253) ($ 431,782)
Foreign currency Unrealized
translation losses on Unearned
adjustment valuation compensation Total
At January 1, 2018 ($ 283,124)
 $ -
 ($ 19,215)
 ($ 302,339)
Effects of retrospective
application - ( 23,600) - ( 23,600)
After adjustment ($ 283,124) ($ 23,600) ($ 19,215) ($ 325,939)
Valuation adjustment - ( 14,155)
 - ( 14,155)
Currency translation differences:
-Group ( 30,034)
 - - ( 30,034)
Retirement of restricted shares - - 2,412 2,412
to employees
Share-based payment transactions - - 12,018 12,018
At September 30, 2018 ($ 313,158) ($ 37,755) ($ 4,785) ($ 355,698)
Operating revenue
For the three-month For the three-month
period ended period ended
September 30,2019 September 30,2018
Revenue from contracts with customers $ 1,575,695 $ 3,086,368
For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Revenue from contracts with customers $ 4,796,484 $ 8,877,914

(22) Operating revenue

  • A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following geographical regions: 

~36~
For the three-month
period ended
September 30,2019
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point in time
Over time
Total
For the three-month
period ended
September 30,2018
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point in time
For the nine-month
period ended
September 30,2019
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point in time
Over time
Total		 Asia
870,644
$ 847,416
$ 23,228
870,644
$ Asia
2,487,326
$ 2,487,326
$ Asia
2,743,064
$ 2,672,950
$ 70,114
2,743,064
$		 Europe
270,336
$ 270,336
$ -
270,336
$ Europe
379,210
$ 379,210
$ Europe
1,024,612
$ 1,024,612
$ -
1,024,612
$		 America
430,784
$ 430,784
$ -
430,784
$ America
205,595
$ 205,595
$ America
984,215
$ 984,215
$ -
984,215
$		 Taiwan
3,931
$ 3,931
$ -
3,931
$ Taiwan
14,237
$ 14,237
$ Taiwan
44,593
$ 44,593
$ -
44,593
$		 Total
1,575,695
$
1,552,467
$ 23,228
1,575,695
$
Total
3,086,368
$
3,086,368
$
Total
4,796,484
$
4,726,370
$ 70,114
4,796,484
$		 
~37~
For the nine-month
period ended
September 30,2018
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point in time
Over time
Total		 Asia
7,427,858
$ 7,420,163
$ 7,695
7,427,858
$		 Europe
1,015,498
$ 1,015,498
$ -
1,015,498
$		 America
383,628
$ 383,628
$ -
383,628
$		 Taiwan
50,930
$ 50,930
$ -
50,930
$		 Total
8,877,914
$
8,870,219
$ 7,695
8,877,914
$

B. Contract assets

The Group has recognized the following revenue-related contract assets:

Technical license contract
Allowance for uncollectible
account
Total		 September 30,2019
-
$ -
-
$		 December 31,2018
September 30,2018
-
$ 857
$ -
857)
(
-
$ -
$

(23) Other income

Other income
Interest income:
Interest income from bank deposits
Interest income from financial assets at amortised
cost
Others
Interest income subtotal
Rental revenue
Dividend income
Other income - others
Total		 For the three-month
period ended
September 30,2019
32,236
$ 5,038
5
37,279
10,708
763
7,428
56,178
$		 For the three-month
period ended
September 30,2018
32,613
$ -
9
32,622
6,688
915
3,610
43,835
$		 
~38~
(24) Other gains and losses
For the nine-month
period ended
For the nine-month
period ended
September 30,2019
September 30,2018
Interest income:
Interest income from bank deposits
97,678
$ 89,479
$ Interest income from financial assets at amortised
cost
13,053
-
Others
20
19
Interest income subtotal
110,751
89,498
Rental revenue
21,094
26,679
Dividend income
763
915
Other income - others
11,744
17,505
Total
144,352
$ 134,597
$ For the three-month
period ended
For the three-month
period ended
September 30,2019
September 30,2018
Gains on disposal of property, plant and
equipment
62
$ 5,159
$ Net currency exchange gains
7,290
26,502
Net gains on financial assets at fair value
through profit
2,032
866
Other expenses
746)
(
99)
(
Total
8,638
$ 32,428
$ For the nine-month
period ended
For the nine-month
period ended
September 30,2019
September 30,2018
Gains (losses) on disposal of property, plant
and equipment
84
$ 1,370)
($ Net currency exchange gains
8,776
5,589
Net gains on financial assets at fair value
through profit
8,150
2,508
Reversal of impairment loss of investments
accounted for under equity method
651
-
Other expenses
746)
(
4,135)
(
Total
16,915
$ 2,592
$		 
~39~

(25) Finance costs

Finance costs
Expenses by nature
Interest expense
Interest expense
Employee benefit expenses
Depreciation charges on property, plant and
equipment
Depreciation charges on investment property
Depreciation charges on right-of-use assets
Amortisation charges on intangible assets
Total
Employee benefit expenses
Depreciation charges on property, plant and
equipment
Depreciation charges on investment property
Depreciation charges on right-of-use assets
Amortisation charges on intangible assets
Total		 For the three-month
period ended
September 30,2019
6,569
$ For the nine-month
period ended
September 30,2019
19,679
$ For the three-month
period ended
September 30,2019
271,302
$ 44,228
1,704
1,970
5,333
324,537
$ For the nine-month
period ended
September 30,2019
833,616
$ 139,231
5,113
6,175
17,220
1,001,355
$		 For the three-month
period ended
September 30,2018
6,408
$
For the nine-month
period ended
September 30,2018
18,749
$
For the three-month
period ended
September 30,2018
328,086
$ 52,269
1,704
-
6,634
388,693
$
For the nine-month
period ended
September 30,2018
984,760
$ 163,691
5,113
-
21,269
1,174,833
$

(26) Expenses by nature

~40~

(27) Employee benefit expenses

Employee benefit expenses
Wages and salaries
Employee stock options
Labour and health insurance fees
Pension costs
Other personnel expenses
Total
Wages and salaries
Employee stock options
Labour and health insurance fees
Pension costs
Other personnel expenses
Total		 For the three-month
period ended
September 30,2019
235,735
$ 3,677
12,037
11,857
7,996
271,302
$ For the nine-month
period ended
September 30,2019
727,450
$ 5,392
39,165
37,364
24,245
833,616
$		 For the three-month
period ended
September 30,2018
286,991
$ 3,726
13,591
13,707
10,071
328,086
$
For the nine-month
period ended
September 30,2018
853,590
$ 14,799
41,911
42,556
31,904
984,760
$
  • A. According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute compensation to the employees and pay remuneration to the directors that account for 10% to 20% and no higher than 2%, respectively, of distributable profit of the current period. If a company has accumulated deficit, earnings should be channeled to cover losses. Employees’ compensation can be distributed in the form of shares or in cash. Employees of subsidiaries that the Company holds more than 50% shareholding are entitled to receive aforementioned stock or cash.

Abovementioned distributable profit of the current period refers to the pre-tax profit before deduction of employees’ compensation and directors’ remuneration. A company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributed as employees’ compensation and directors’ remuneration; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting.

  • B. For the three-month and nine-month periods ended September 30, 2019 and 2018, employees’ compensation was accrued at $7,821, $18,001, $17,036 and $23,607, respectively; directors’ and supervisors’ remuneration was accrued at $1,042, $2,401, $2,271 and $3,148, respectively. The aforementioned amounts were recognized in salary expenses. 
~41~

  • C. Employees’ compensation and directors’ and supervisors’ remuneration for 2018 amounting to $29,710 and $3,961, respectively, as resolved at the meeting of Board of Directors were in agreement with those amounts recognized in the 2018 financial statements. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

  • (28) Income tax

  • A. Income tax expense

    • (a) Components of income tax expense:
e tax
ome tax expense
Components of income tax expense:
For the three-month For the three-month
period ended period ended
September 30,2019 September 30,2018
Current tax:
Current tax on profits for the period $ 18,782
 $ 23,232
Tax paid outside of the territory of
the Republic of China ( 615)
 -
Adjustments in respect of prior years ( 6,038) 1
Total current tax 12,129 23,233
Deferred tax:
Origination and reversal of
temporary differences 8,019 16,539
Income tax expense $ 20,148 $ 39,772
For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Current tax:
Current tax on profits for the period $ 43,379
 $ 64,313
Tax paid outside of the territory of
the Republic of China 1,019 -
Adjustments in respect of prior years ( 16,993) ( 16,783)
Total current tax 27,405 47,530
Deferred tax:
Origination and reversal of
temporary differences 11,048 ( 41,715)
Impact of change in tax rate - 62,901
Total deferred tax 11,048 21,186
Income tax expense $ 38,453 $ 68,716 
~42~
  • (b) The income tax charged to other comprehensive income is as follows:
For the three-month For the three-month
period ended period ended
September 30,2019 September 30,2018
Changes in fair value of financial assets at
fair value through other comprehensive
income $ 35
 $ 726
Translation differences of foreign operations ( 31,517) ( 37,309)
($ 31,482) ($ 36,583)
For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Changes in fair value of financial assets at
fair value through other comprehensive
income ($ 197)
 $ 726
Translation differences of foreign operations ( 13,510)
 ( 20,300)
Impact of change in tax rate - 119
($ 13,707) ($ 19,455)

  • B. As of September 30, 2019, the Company’s income tax returns through 2017 have been assessed and approved by the Tax Authority.

  • C. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China in February, 2018, the Company’s applicable income tax rate was raised from 17% to 20% effective from January 1, 2018. The Group has assessed the impact of the change in income tax rate. 

~43~

(29) Earnings per share

Earnings per share
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent
Assumed conversion of all dilutive
potential ordinary shares
Restricted shares to employees
Employees’ bonus
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent
Assumed conversion of all dilutive
potential ordinary shares
Restricted shares to employees
Employee stock option certificates
Employees’ bonus
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares		 For the three-monthperiod ended September 30,2019
Weighted average number of
ordinary shares outstanding
Earnings per share
Amount after tax
(share in thousands)
(in dollars)
38,260
$ 274,011
0.14
$ 38,260
$ 112
693
38,260
$ 274,816
0.14
$ For the three-monthperiod ended September 30,2018		 Earnings per share
(in dollars)
0.14
$
0.14
$
Amount after tax
80,015
$ 80,015
$ 80,015
$		 Weighted average number of
ordinary shares outstanding
(share in thousands)
272,195
1,486
179
866
274,726		 Earnings per share
(in dollars)
0.29
$
0.29
$		 
~44~
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent
Assumed conversion of all dilutive
potential ordinary shares
Restricted shares to employees
Employees’ bonus
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent
Assumed conversion of all dilutive
potential ordinary shares
Restricted shares to employees
Employee stock option certificates
Employees’ bonus
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares		 For the nine-monthperiod ended September 30,2019 For the nine-monthperiod ended September 30,2019 For the nine-monthperiod ended September 30,2019
Weighted average number of
ordinary shares outstanding
Earnings per share
Amount after tax
(share in thousands)
(in dollars)
83,052
$ 273,779
0.30
$ 83,052
$ 48
988
83,052
$ 274,815
0.30
$ For the nine-monthperiod ended September 30,2018		 Earnings per share
(in dollars)
0.30
$
0.30
$
Amount after tax
109,062
$ 109,062
$ 109,062
$		 Weighted average number of
ordinary shares outstanding
(share in thousands)
269,634
1,681
106
899
272,320		 Earnings per share
(in dollars)
0.40
$
0.40
$		 
~45~

(30) Operating leases

Prior to 2019

The Group leased part of the Taipei office building with operating leases. Contingent rents of $6,529 and $19,599 were recognized for these leases in profit or loss for three-month and nine-month periods ended September 30, 2018, respectively. The future aggregate minimum lease payments receivable under non-cancellable operating leases are as follows:

Not more than 1 year
More than 1 year but not more than 5 years		 December 31,2018
28,921
$ 9,640
38,561
$		 September 30,2018
28,921
$ 16,870
45,791
$

The Group leases land, office buildings and company cars for operational needs under noncancellable operating lease agreements. These lease terms are between 2018 and 2027. Most of the lease agreements are renewable at the market price at the end of the lease period. The future aggregate minimum lease payments receivable under non-cancellable operating leases are as follows:

Not more than 1 year
More than 1 year but not more than 5 years
Over 5 years		 December 31,2018
8,333
$ 20,810
15,087
44,230
$		 September 30,2018
3,772
$ 15,087
16,030
34,889
$

(31) Supplemental cash flow information

A. Investing activities with partial cash payments

For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Acquisitions of property, plant, and
equipment $ 12,833
 $ 17,620
Add: Property and equipment and
construction billings payable at
beginning of year 1,229 12,340
Less: Property and equipment and
construction billings payable at end
of year ( 1,551) ( 1,999)
Cash paid $ 12,511 $ 27,961 
~46~
For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Acquisitions of intangible assets $ 3,600
 $ 3,801
Add: Payable at beginning of year 1,234 4,763
Less: Payable at end of year ( 703) ( 1,872)
Cash paid $ 4,131 $ 6,692
Financing activities with no cash flow effects
For the nine-month For the nine-month
period ended period ended
September 30,2019 September 30,2018
Declaration of cash dividends $ 137,005 $ -

B. Financing activities with no cash flow effects

(32) Changes in liabilities from financing activities

Short-term
borrowings
Short-
term notes
and
bills
Long-term
borrowings
Guarantee
deposits
received
Lease
liabilities
At January 1, 2019
1,760,000
$ -
$ 600,000
$ 20,470
$ 107,196
$ Changes in cash flow from
financing activities
450,000
179,580
600,000)
(
2,241
5,967)
(
Impact of changes in foreign
exchange rate
-
-
-
340)
(
64)
(
Changes in other non-cash items
-
302
-
-
1,272
At September 30, 2019
2,210,000
$ 179,882
$ -
$ 22,371
$ 102,437
$ Short-term
notes and
billspayable
Long-term
borrowings
Guarantee
deposits
received
At January 1, 2018
2,021,000
$ 199,797
$ -
$ 23,923
$ $ Changes in cash flow from
financing activities
376,000)
(
1,244)
(
600,000
3,233)
(
Impact of changes in foreign
exchange rate
-
-
-
339)
(
(
Changes in other non-cash items
-
1,261
-
-
At September 30, 2018
1,645,000
$ 199,814
$ 600,000
$ 19,334
$ $		 Short-term
borrowings		 Short-term
borrowings		 Short-
term notes
and
bills		 Long-term
borrowings		 Guarantee
deposits
received		 Lease
liabilities		 Lease
liabilities		 Lease
liabilities		 Total
$ 1,760,000

450,000
-
-
2,210,000		 $ 2,487,666
$ 25,854
404)
(
1,574
2,514,690
$ Total
2,244,720

219,523
339)

1,261
2,464,148
$ $
$ (
$
$

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship: None.

(2) Significant transactions and balances with related parties:

No significant related party transactions. 

~47~

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits
Post-employment benefits
Share-based payments
Total
Salaries and other short-term employee benefits
Post-employment benefits
Share-based payments
Total		 For the three-month
period ended
September 30,2019
10,256
$ 212
963
11,431
$ For the nine-month
period ended
September 30,2019
30,691
$ 594
1,847
33,132
$		 For the three-month
period ended
September 30,2018
5,873
$ 155
929
6,957
$
For the nine-month
period ended
September 30,2018
23,689
$ 467
4,605
28,761
$

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset Purpose

Long-term borrowings
Long-term borrowings		 Book value September 30,2018
749,359
$ 772,255
1,521,614
$
September 30,2019
December 31,2018

748,405
$ 746,621
$ 765,438
770,551
1,513,843
$ 1,517,172
$
Land, buildings and
structures
Investment acquisition

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

Contingencies

On December 22, 2015, the Company filed a civil complaint against HTC Corporation with the Taiwan Taipei District Court, alleging HTC Corporation’s default in relation to the agreed upon Manufacturing and Supply Agreement and claiming damage of USD 11,126 thousand against HTC Corporation. As of November 4, 2019, the case is still under trial.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENT

None. 

~48~

12. OTHERS

(1) Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends, return capital or issue new shares to achieve the optimal capital structure.

(2) Financial instruments

A. Financial instruments by category

ucture.
nancial instruments
Financial instruments by category
Financial assets
Financial assets measured at fair
value through profit or loss
Financial assets mandatorily
measured at fair value through
profit or loss
Financial assets at fair value
through other comprehensive
income
Designation of equity instrument
Financial assets at amortised cost
Loans and receivables
Cash and cash equivalents
Current financial assets at
amortised cost
Notes receivable
Accounts receivable
Other accounts receivable
Guarantee deposit paid		 September 30, 2019
31,596
$ 59,071
6,930,860
753,005
61,239
1,117,794
40,354
39,224
8,942,476
$		 December31,2018
23,683
$ 114,508
6,495,017
261,288
1,387,222
2,414,775
31,712
38,525
10,628,539
$		 September30,2018
781,618
$
112,668
5,809,297
-
1,733,389
3,089,810
38,263
38,399
10,709,158
$		 
~49~
Financial liabilities
Financial liabilities at amortised
cost
Short-term borrowings
Short-term notes and bills payable
Notes payable
Accounts payable
Other accounts payable
Long-term borrowings
(including current portion)
Guarantee deposits received
Lease liabilities		 September 30, 2019
2,210,000
$ 179,882
-
1,039,103
511,117
-
22,371
3,962,473
$ 102,437
$		 December31,2018
1,760,000
$ -
1,049,446
1,878,509
415,658
600,000
20,470
5,724,083
$ -
$		 September30,2018
1,645,000
$ 199,814
1,204,945
2,707,842
393,402
600,000
20,351
6,771,354
$
-
$

  • B. Financial risk management policies

  • (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimize any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk, and interest rate swaps are used to fix variable future cash flows. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

  • (b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

  • C. Significant financial risks and degrees of financial risks

  • (a) Market risk

Foreign exchange risk

  • i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognized assets and liabilities. 
~50~

  • ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward foreign exchange contracts are adopted to minimize the volatility of the exchange rate affecting cost of forecast inventory purchases.

  • iii. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies.

  • iv. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

September 30, 2019

(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD
USD:RMB
Financial liabilities
Monetary items
USD:NTD
USD:RMB		 Foreign Currency
Amount
(In thousands)
81,251
USD
57,214
USD
77,353
USD
27,046
USD		 Exchange
Rate
31.040
7.0729
31.040
7.0729		 Book Value
(NTD)
2,522,031
$ 1,775,923
2,401,037
$ 839,508		 SensitivityAnalysis SensitivityAnalysis
Effect on
Extent of
Profit or
Variation
(Loss)
1%
25,220
$ 1%
17,759
1%
24,010)
($ 1%
8,395)
(		 Effect on
Other
Comprehensive
Income(Loss)
-
$ -
-
$ -		 


~51~

December 31, 2018

December 31,2018 December 31,2018 1,2018 1,2018
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD
USD:RMB
Non-monetary items
USD:NTD
Financial liabilities
Monetary items
USD:NTD
USD:RMB
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD
USD:RMB
Financial liabilities
Monetary items
USD:NTD
USD:RMB		 Foreign Currency
Amount
(In thousands)
62,373
USD
41,445
USD
872
USD
61,532
USD
32,014
USD		 Effect on
Effect on
Other
Exchange
Book Value
Extent of
Profit or
Comprehensive
Rate
(NTD)
Variation
(Loss)
Income(Loss)
30.715
1,915,787
$ 1%
19,158
$ -
$ 6.8632
1,272,983
1%
12,730
-
30.715
26,768
$ 1%
-
$ 268
$ 30.715
1,889,955
$ 1%
18,900)
($ -
$ 6.8632
983,310
1%
9,833)
(
-
SensitivityAnalysis
September 30,2018		 SensitivityAnalysis
Effect on
Other
Comprehensive
Income(Loss)
-
$ -
268
$ -
$ -
Foreign Currency
Amount
(In thousands)
74,997
USD
41,043
USD
67,117
USD
38,563
USD		 Exchange
Rate
30.525
6.8792
30.525
6.8792		 Book Value
(NTD)
2,289,283
$ 1,252,838
2,048,746
$ 1,177,136		 SensitivityAnalysis
Effect on
Extent of
Profit or
Variation
(Loss)
1%
22,893
$ 1%
12,528
1%
20,487)
($ 1%
11,771)
(		 Effect on
Other
Comprehensive
Income(Loss)
-
$ -
-
$ -


v. Total exchange gain , including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and ninemonth periods ended September 30, 2019 and 2018 amounted to $7,290, $26,502, $8,776 and $5,589, respectively. 

~52~

Price risk

  • i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.

  • ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the years ended September 30, 2019 and 2018 would have increased/decreased by $3,160 and $78,162, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $5,907 and $11,267, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

Interest risk arises from the changes of market interest rate causing fluctuation in financial instruments’ fair value or cash received and paid in the future. The Group raised short-term and long-term borrowings at fixed rates during the nine-month periods ended September 30, 2019 and 2018, and thus had no significant cash flow interest rate risk.

  • (b) Credit risk

  • i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

  • ii. The Group manages their credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings. The utilisation of credit limits is regularly monitored.

  • iii. The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.

  • iv. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

    • If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. 
~53~

  • v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

  • (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

  • (ii) The disappearance of an active market for that financial asset because of financial difficulties;

  • (iii) Default or delinquency in interest or principal repayments;

  • (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

  • vi. The Group classifies customers’ accounts receivable, contract assets and rents receivable in accordance with customer types. The Group applies the simplified approach using loss rate methodology to estimate expected credit loss under the provision matrix basis.

  • vii. The Group used the forecastability to adjust historical and timely information to access the default possibility of accounts receivable, contract assets and notes receivable. On September 30, 2019, December 31, 2018 and September 30, 2018, the provision matrix is as follows:

is as follows:
At September 30,2019 Up to 90 days
past due		 91~180 days
past due		 181 to 360 days
past due		 Upto 361 days Total
0%
1,137,331
$ -
$ Up to 90 days
past due		 20%
39,147
$ -
$ 91~180 days
past due		 50%
4,798
$ 2,243
$ 181 to 360 days
past due		 100%
4,801
$ 4,801
$ Upto 361 days		 1,186,077
$ 7,044
$ Total
3,817,876
$ 15,879
$ Total
Expected loss rate
Total book value
Loss allowance
At December 31,2018
Expected loss rate
Total book value
Loss allowance
At September 30,2018
0%
3,775,678
$ -
$ Up to 90 days
past due		 20%
29,761
$ 4,375
$ 91~180 days
past due		 50%
6,222
$ 5,289
$ 181 to 360 days
past due		 100%
6,215
$ 6,215
$ Upto 361 days
0%
4,742,587
$ 857
$		 20%
25
$ -
$		 50%
84,960
$ 3,516
$		 100%
6,177
$ 6,177
$		 4,833,749
$ 10,550
$
Expected loss rate
Total book value
Loss allowance		 
~54~

viii. Movements in relation to the group applying the simplified approach to provide loss allowance for accounts receivable, contract assets and notes receivable are as follows:

At January 1
Reversal of impairment loss
Write-offs
Effect of foreign exchange
At September 30
At January 1
Adjustment for retrospective
application of IFRS 9
Provision for impairment
Write-offs
Effect of foreign exchange
At September 30		 2019 Notes receivable
Accounts
receivable		 Contract assets
15,879
$ 8,058)
(
835)
(
58
7,044
$ Accounts
receivable		 -
$ -
-
-
-
$ 2018		 -
$ -
-
-
-
$ Notes receivable
Accounts
receivable		 Contract assets
8,747
$ -
955
33)
(
24
9,693
$		 -
$ -
857
-
-
857
$		 -
$ -
-
-
-
-
$

(c) Liquidity risk

  • i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, and compliance with internal balance sheet ratio targets.

  • ii. Surplus cash held by the operating entities over and above the balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts. 

~55~

iii. The Group has following undrawn borrowing facilities:

0
Fixed rate:
Expiring within one year
Expiring beyond one year		 September30,2019
3,272,220
$ 1,200,000
4,472,220
$		 December31,2018
3,425,060
$ 600,000
4,025,060
$		 September30,2018
2,428,160
$ 600,000
3,028,160
$
  • iv. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.
Non-derivative financial liabilities:
September 30, 2019
Short-term borrowings
Short-term notes and bills payable
Accounts payable
Other payables
Lease liabilities
Guarantee deposits received
Non-derivative financial liabilities:
December 31, 2018
Short-term borrowings
Notes payable
Accounts payable
Other payables
Long-term borrowings
(including current portion)
Guarantee deposits received
Non-derivative financial liabilities:
September 30, 2018
Short-term borrowings
Short-term notes and bills payable
Notes payable
Accounts payable
Other payables
Long-term borrowings
(including current portion)
Guarantee deposits received		 Less than 1year
2,210,000
$ 179,882
1,039,103
511,117
7,613
-
Less than 1year
1,760,000
$ 1,049,446
1,878,509
415,658
-
-
Less than 1year
1,645,000
$ 199,814
1,204,945
2,707,842
393,402
-
-		 Over 1year
-
$ -
-
-
113,848
22,371
Over 1year
-
$ -
-
-
600,000
20,470
Over 1year
-
$ -
-
-
-
600,000
20,351		 
~56~

(3) Fair value estimation

  • A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

  • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed beneficiary certificates, on-the-run derivative instruments with quoted market prices is included in Level 1.

  • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

  • Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

  • B. Fair value information of investment property at cost is provided in Note 6(10).

  • C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows: (a)The related information of natures of the assets is as follows :

September 30, 2019
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Unlisted stocks
Financial assets at fair
value through other
comprehensive income
Unlisted stocks		 Level 1
-
$ -
-
$		 Level 2
-
$ 7,036
7,036
$		 Level 3
31,596
$ 52,035
83,631
$		 Total
31,596
$ 59,071
90,667
$		 
~57~
December 31, 2018
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Unlisted stocks
Financial assets at fair
value through other
comprehensive income
Unlisted stocks
September 30, 2018
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Beneficiary certificates
Unlisted stocks
Financial assets at fair
value through other
comprehensive income
Unlisted stocks		 Level 1
-
$ -
-
$ Level 1
771,017
$ -
-
771,017
$		 Level 2
-
$ 60,515
60,515
$ Level 2
-
$ -
59,340
59,340
$		 Level 3
23,683
$ 53,993
77,676
$ Level 3
-
$ 10,601
53,328
63,929
$		 Total
23,683
$ 114,508
138,191
$
Total
771,017
$ 10,601
112,668
894,286
$

(b) The methods and assumptions the Group used to measure fair value are as follows: i The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Open-end fund Market quoted price Net asset value

ii The fair value of Level 2 financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date. 

~58~

  • D. For the year ended September 30, 2019 and 2018, there was no transfer between Level 1 and Level 2.

  • E. The following chart is the movement of Level 3 for the year ended September 30, 2019 and 2018:

Equityinstrument Equityinstrument
2019 2018
At January 1 $ 77,676
 $ 61,611
Gains recognised in profit or loss 8,150 -
(Losses) gains recognised in other
comprehensive income ( 986)
 3,631
Sold in the period ( 237)
 -
Effect of exchange rate changes ( 972) ( 1,313)
At September 30 $ 83,631 $ 63,929

  • F. For the year ended September 30, 2019 and 2018, there was no transfer into or out from Level 3.

  • G. Accounting Department segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value. Investment property is valuated regularly by the Group’s Accounting Department segment based on the valuation methods and assumptions announced by the Financial Supervisory Commission, Securities and Futures Bureau or through outsourced appraisal performed by the external valuer.

  • H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement: 

~59~
Financial assets at
fair value through
profit or loss
Unlisted shares
Financial assets at
fair value through
comprehensive
income
Unlisted shares
Financial assets at
fair value through
profit or loss
Unlisted shares
Financial assets at
fair value through
comprehensive
income
Unlisted shares
Financial assets at
fair value through
profit or loss
Unlisted shares
Financial assets at
fair value through
comprehensive
income
Unlisted shares		 Fair value at
September 30,
2019		 Valuation
technique		 Significant
unobservable input		 Relationship of
inputs to fair value
31,596
$ 52,035
Fair value at
December 31,
2018		 Net asset value
Net asset value
Valuation
technique		 Not applicable
Not applicable
Significant
unobservable input		 Not applicable
Not applicable
Relationship of
inputs to fair value
23,683
$ 53,993
Fair value at
September 30,
2018		 Net asset value
Net asset value
Valuation
technique		 Not applicable
Not applicable
Significant
unobservable input		 Not applicable
Not applicable
Relationship of
inputs to fair value
10,601
$ 53,328		 Net asset value
Net asset value		 Not applicable
Not applicable		 Not applicable
Not applicable

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.

  • B. Provision of endorsements and guarantees to others: None. 
~60~

  • C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) : Please refer to table 1.

  • D. Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company’s paid-in capital: None.

  • E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

  • F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

  • G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 2.

  • H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more:

  • Please refer to table 3.

  • I. Trading in derivative financial instruments undertaken during the reporting periods: None.

  • J. Significant inter-company transactions during the reporting periods: Please refer to table 4.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 5.

(3) Information on investments in Mainland China

  • A. The related information of investments in Mainland China: Please refer to table 6.

  • B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area:

For the significant purchases, sales, accounts payable and accounts receivable transactions between the Company and the investee companies in Mainland China through its subsidiaries, please refer to tables 2 and 4.

14. SEGMENT INFORMATION

(1) General information

The Group mainly operates in one segment. The Chief Operating Decision-Maker reviews the Group’s reporting to assess performance and allocate resources. The Group mainly has a single reportable segment.

(2) Measurement of segment information

The Chief Operating Decision-Maker assesses the performance of the operating segments based on the revenues and operating profit. The accounting policy of operating segments is the same as that described in Note 4.

(3) Information about segment profit or loss, assets and liabilities

None.

(4) Reconciliation for segment income (loss)

The segment assets, liabilities and operating profit reported to the Chief Operating Decision-Maker are measured in a manner consistent with that in the balance sheet and statement of comprehensive income, thus, no reconciliation is needed. 

~61~

Altek Corporation and subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

September 30, 2019

September 30, 2019
Table 1
Securities held by		 Marketable securities Relationship with the
securities issuer		 General
ledger account		 As ofSeptember30,2019
Expressed in thousands of NTD
(Except as otherwise indicated)
Number of shares Bookvalue Ownership (%) Fairvalue
Altek Corporation
"
Altek (Kunshan) Co., Ltd.
"		 Gianta Co., Ltd. - Common stock
Hua-chuang Automobile Information
Technical Center Co., Ltd. - Common
stock
Guangdong Kingding Optical Technology
Co., Ltd.
CPEC Huachuang Private Equity
(Kunshan) Enterprise (Limited
Partnership)		 Director
None
None
None		 Financial assets at fair value
through profit or loss
- non-current
Financial assets measured at
fair value through other
comprehensive income
- non-current
"
"		 762,876
5,660,000
1,200,000
N/A		 31,596
$ 7,036
6,730
45,305		 14.55%
1.72%
6.45%
(Note)		 31,596
$ 7,036
6,730
45,305

Note : 1% of CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership)’s capital contribution.

Table 1

Altek Corporation and subsidiaries

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the nine-month period ended September 30, 2019

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller Counterparty Relationship with the
counterparty		 Transaction Transaction Differences in transaction terms
compared to third party
transactions		 Differences in transaction terms
compared to third party
transactions		 Notes/accounts
receivable(payable)		 Notes/accounts
receivable(payable)
Purchases
(sales)		 Amount Percentage of
total purchases
(sales)		 Credit term Unitprice Credit term Balance Percentage of
total notes/accounts
receivable(payable)
Altek Corporation
"
Altek International
Investment Co.,
Ltd.
Altek International
Trading Co., Ltd.
Altek Biotechnology
Corporation
"
Altek Semiconductor
(Shanghai) CO., Ltd.		 Altek International
Investment Co., Ltd.
Altek International
Trading Co., Ltd.
Altek (Kunshan) Co., Ltd.
"
Altek International
Investment Co., Ltd.
Altek International
Trading Co., Ltd.
Altek (Kunshan) Co., Ltd.		 Parent and affiliated
company
"
"
The same ultimate
parent company
"
"
"		 Purchases
Purchases
Purchases
Purchases
Purchases
Purchases
Purchases		 1,558,856
$ 990,722
2,287,308
1,326,231
683,038
270,263
135,912		 58%
37%
100%
100%
71%
28%
100%		 Net 120 days
"
Net 75 days
"
"
"
"		 Approximately
the same price
with third
parties
"
"
"
"
"
"		 Note
"
"
"
"
"
"		 1,599,000)
($ 510,441)
(
59,932)
(
849,136)
(
25,369)
(
245,135)
(
153,840)
(		 75%
24%
100%
99%
9%
90%
100%

Note: The payment term with third parties was net 60~120 days.

Table 2

Altek Corporation and subsidiaries

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

September 30, 2019

Table 3
Creditor		 Counterparty Relationship
with the counterparty		 Balance as atSeptember30,2019 Turnover rate Overdue receivables Overdue receivables Amount collected
subsequent to the
balance sheet date
Allowance for
doubtful accounts
Expressed in thousands of NTD
(Except as otherwise indicated)		 Amount collected
subsequent to the
balance sheet date
Allowance for
doubtful accounts
Expressed in thousands of NTD
(Except as otherwise indicated)
Amount Action taken
Altek International
Investment Co., Ltd.
Altek International
Trading Co., Ltd.
"
Altek (Kunshan) Co., Ltd.
"		 Altek Corporation
"
Altek Biotechnology
Corporation
Altek International
Trading Co., Ltd.
Altek Semiconductor
(Shanghai) Co., Ltd.		 Parent company
Parent company
The same ultimate
parent company
The same ultimate
parent company
The same ultimate
parent company		 1,599,000
$ 510,441
245,135
849,136
153,840		 1.32
8.52
6.38
6.94
0.60		 -
$ -
-
-
-		 N/A
N/A
N/A
N/A
N/A		 62,078
$ 264,018
61,742
319,226
106,049		 -
$ -
-
-
-

Table 3

Altek Corporation and subsidiaries

Expressed in thousands of NTD

Significant inter-company transactions during the reporting periods

For the nine-month period ended September 30, 2019

Table 4

(Except as otherwise indicated)

Companyname Counterparty Relationship
(Note 1)		 Transaction
General ledger account Amount Transaction terms Percentage of consolidated total operating
revenues or total assets(Note 2)
Altek Corporation
"
"
"
Altek International Investment Co., Ltd.
"
Altek International Trading Co., Ltd.
"
Altek Semiconductor Corporation
"
"
"
"
"
Altek Biotechnology Corporation
"
"
"
Altek (Kunshan) Co., Ltd.
"
Altek Trading (Shanghai) Limited
"
Altek Semiconductor (Shanghai) Co., Ltd.
"		 Altek International Investment Co., Ltd.
"
Altek International Trading Co., Ltd.
"
Altek (Kunshan) Co., Ltd.
"
"
"
Altek International Investment Co., Ltd.
Altek International Trading Co., Ltd.
"
"
"
Altek Semiconductor (Shanghai) Co., Ltd.
Altek International Investment Co., Ltd.
"
Altek International Trading Co., Ltd.
"
Altek International Investment Co., Ltd.
Altek International Trading Co., Ltd.
Altek (Kunshan) Co., Ltd.
"
"
"		 (1)
(1)
(1)
(1)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)		 Purchases
Accounts payable
Purchases
Accounts payable
Purchases
Accounts payable
Purchases
Accounts payable
Sales
Sales
Accounts receivable
Purchases
Accounts payable
Royalty income
Purchases
Accounts payable
Purchases
Accounts payable
Purchases
Purchases
Purchases
Accounts payable
Purchases
Notes/accounts payable		 1,558,856
$ 1,599,000
990,722
510,441
2,287,308
59,932
1,326,231
849,136
19,023
6,691
6,631
6,000
5,995
10,188
683,038
25,369
270,263
245,135
80,716
71,421
69,277
9,696
135,912
153,840		 Net 120 days
"
"
"
Net 75 days
"
"
"
"
"
"
Net 120 days
"
Net 75 days
"
"
"
"
"
"
"
"
"
"		 32%
11%
21%
4%
48%
0%
28%
6%
0%
0%
0%
0%
0%
0%
14%
0%
6%
2%
2%
1%
1%
0%
3%
1%

Note 1: Relationship between transaction and counterparty is classified into the following categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 2: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 3: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Table 4

Altek Corporation and subsidiaries

Information on investees

For the nine-month period ended September 30, 2019

Table 5
Investor		 Investee Location Main business activities Initial investment amount Initial investment amount Shares held as at September 30,2019 Shares held as at September 30,2019 Shares held as at September 30,2019 Net profit (loss) of
the investee for the
nine-month period
ended September 30,2019		 Investment income(loss)
recognised by the Company
for the nine-month period
ended September 30,2019
Expressed in thousands of NTD
(Except as otherwise indicated)
Balance
as at September 30,
2019		 Balance
as at December 31,
2018		 Number of shares Ownership (%) Book value
Altek Corporation
"
"
"
Altek International
Investment Co., Ltd.
"
"
"
Altek Semiconductor
(Cayman) Co., Ltd.
Altek Biotechnology
Holding (Cayman)
Co., Ltd.		 Altek International
Investment Co., Ltd.
Altek Japan Corporation
Altek Investment Co.,
Ltd.
Altek International
Holding (BVI) Co, Ltd.
Altek Lab Inc.
JinJing Optical
Technology Co., Ltd.
Altek Semiconductor
(Cayman) Co., Ltd.
Altek International
Trading Co.,Ltd
Altek Semiconductor
Corporation
Altek Biotechnology
Corporation		 British Virgin
Islands
Japan
Republic of China
British Virgin
Islands
U.S.A.
Samoa
Cayman Islands
Republic of
Seychelles
Republic of China
Republic of China		 Investment
Sale of optical optical instruments
Investment
Investment
Design service
Investment and general business
operations
Investment
Investment and general business
operations
Research design and sales of ASIC
Research and development,
manufacture and sales of
medical electronic equipments		 2,882,512
$ 2,869
-
415,376
114,219
80,937
190,810
93,120
200,000
415,376		 2,910,046
$ 2,869
50,000
415,376
114,219
108,640
190,810
-
200,000
415,376		 87,769,559
1,000
-
12,865,921
11,311,875
2,607,500
20,000,000
3,000,000
20,000,000
40,100,000		 100%
100%
-
100%
100%
23.33%
50%
100%
100%
100%		 8,840,126
$ 11,916
-
731,843
64,944
-
614,123
85,652
163,389
659,991		 17,986)
($ 18
1)
(
143,241
2,195
51
126,635)
(
7,471)
(
133,169)
(
143,667		 17,986)
($ 18
1)
(
143,241
2,195
-
63,318)
(
7,471)
(
133,169)
(
143,667

Note : The dissolution and liquidation of Altek Investment Co., Ltd. was resolved by the Board of Directors on December 17, 2018. Moreover, the liquidation was completed as approved by the court on April 25, 2019.

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Table 6

Altek Corporation and subsidiaries

Information on investments in Mainland China

For the nine-month period ended September 30, 2019

Investee in Mainland
China		 Main business activities Paid-in capital Investment
method
（Note 1）		 Accumulated amount
of remittance from
Taiwan to Mainland
China as of
January1,2019		 Amount remitted from Taiwan to
Mainland China/Amount
remitted back to Taiwan for
the nine-month period ended
September 30,2019		 Amount remitted from Taiwan to
Mainland China/Amount
remitted back to Taiwan for
the nine-month period ended
September 30,2019		 Accumulated amount
of remittance from
Taiwan toMainland
China as of
September 30,2019		 Net profit (loss) of investee for
the nine-month period
ended September 30,2019		 Ownership held by
the Company
(direct or indirect)		 Investment income
(loss) recognised
by the Company
for the nine-month period
ended September 30,2019		 Book value of
investments in
Mainland China as of
September 30,2019		 Accumulated amount
of investment income
remitted back to
Taiwan as of September 30,
2019
Remitted to Mainland China Remitted back to Taiwan
Altek (Kunshan) Co.,
Ltd. (Note 2)
Manufacture and sale of digital
still cameras and its accessories
1,539,584
$ 2
1,396,800
$ -
$ Altek EMS (Kunshan)
Co., Ltd. (Note 3)
Manufacture and sale of related
engineering services
155,200
2
281,936
-
Altek Trading
(Shanghai) Limited
Wholesale, import and export of
digital cameras, digital video
cameras and their
associated accessories
263,840
2
263,840
-
Altek Precision
(Kunshan) Co., Ltd.
Design, manufacture and sales of
digital camera parts
428,352
2
428,352
-
Altek Optical
Technology
(Kunshan)
Co., Ltd.
Manufacture and sales of
digital camera and its
accessories and
optical components
347,648
2
347,648
-
Altek Semiconductor
(Shanghai) Co., Ltd.
Research design and sales of
imaging technologies,
electronic software and
hardware
46,560
2
-
-
Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1)Directly invest in a company in Mainland China.
(2)Through investing in an existing company in the third area,which then investeed in the investee in Mainland China.
(3)Others.
Note 2: Including retained earnings capitalized of US$4,600 (In thousand of US dollars).
Note 3: Including retained earnings capitalized of US$3,600 (In thousand of US dollars).
Companyname
Accumulated amount of remittance from Taiwan to
Mainland China as of September 30,2019		 -
$ 1,396,800
$ 34,304
$ -
281,936
17,107
-
263,840
9,420
-
428,352
2,183
-
347,648
( 1,624)
-
-
8,333)
(
Investment amount approved by the Investment
Commission of the Ministryof Economic Affairs(MOEA)		 100%
100%
100%
100%
100%
50%		 34,304
$ 3,982,239
$ 17,107
771,025
9,420 301,253
2,183 149,457
( 1,624) 6,224
4,166)
(
113,679
Ceiling on investments in Mainland China imposed
bythe Investment Commission of MOEA		 -
$ -
-
-
-
-
Altek Corporation 2,718,576
$		 3,001,413
$		 $ -

Note:According to “REGULATIONS GOVERNING THE APPROVAL OF INVESTMENT OR TECHNICAL IN MAINLAND CHINA”on August 29, 2008, Altek Corporation obtained the approval from the Industrial Development Bureau of Ministry of Economics Affairs issued to Headquarters, so there is no need to compute the ceiling amount of the Company.

Table 6

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Annual Report 2026
Jun 4
Annual Report 2026
Jun 4
Major Shareholding Notification 2026
Jun 4
Major Shareholding Notification 2026
May 28
Investor Presentation 2026
May 27
Investor Presentation 2026
May 27
Investor Presentation 2026
May 27
Regulatory Filings 2026
May 27
Interim / Quarterly Report 2026
May 26
AGM Information 2026
May 22
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