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Altek Interim / Quarterly Report 2021

Nov 16, 2021

52290_rns_2021-11-16_c671ddaf-6382-40bd-a871-ab4d96b7e66d.pdf

Interim / Quarterly Report

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT

JUNE 30, 2021 AND 2020

(Stock Code ： 3059)

~1~

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR 21000045 (In Thousands of New Taiwan Dollars)

To Altek Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Altek Corporation and subsidiaries as at June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three-month and six-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the six-month periods then ended, and notes to the consolidated financial statements, including a 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 Reports 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” in 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 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 insignificant 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 auditors. Those statements reflect total assets of $2,459,441 and $2,194,266, constituting 16% and 16% of the consolidated total assets, and total liabilities of $53,055 and $14,192, constituting 1% and 0% of the consolidated total liabilities as at June 30, 2021 and 2020,

~2~

respectively, and total comprehensive income (loss) of $26,538, $2,675, $22,386 and ($13,279), constituting (93%), (4%), 803% and 19% of the consolidated total comprehensive income for the threemonth and six-month periods then ended, respectively.

Qualified Conclusion

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 consolidated subsidiaries been reviewed by independent auditors, as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2021 and 2020, and of its consolidated financial performance for the three-month and six-month periods then ended and its consolidated cash flows for the six-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 Chiang, Tsai-Yen

For and on behalf of PricewaterhouseCoopers, Taiwan

August 6, 2021

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 independent auditors’ review report 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

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

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June 30, 2021 December 31, 2020 June 30, 2020
Assets Notes AMOUNT % AMOUNT % AMOUNT %
Current assets
1100 Cash and cash equivalents 6(1) $ 5,745,513 38 $ 5,373,406 37 $ 5,450,465 40
1110 Current financial assets at fair 6(2)
value through profit or loss 152,045 1 349,664 2 - -
1136 Current financial assets at 6(4)
amortised cost 129,379 1 423,387 3 405,976 3
1140 Current contract assets - - 4,414 - - -
1170 Accounts receivable, net 6(5) 1,448,235 9 1,273,383 9 910,251 7
1200 Other receivables 71,468 - 68,825 - 38,575 -
1220 Current income tax assets 4,528 - 3,292 - 4,421 -
130X Inventories, net 6(6) 1,358,581 9 1,106,726 8 887,480 6
1410 Prepayments 262,391 2 217,600 1 164,750 1
1470 Other current assets 9,779 - 4,535 - 8,275 -
11XX Current Assets 9,181,919 60 8,825,232 60 7,870,193 57
Non-current assets
1510 Non-current financial assets at 6(2)
- - -
fair value through profit or loss 69,684 48,229 41,667
1517 Non-current financial assets at 6(3)
fair value through other
comprehensive income 122,627 1 43,130 - 44,789 -
1535 Non-current financial assets at 6(4)
amortised cost 1,294,219 9 1,419,002 10 1,360,649 10
1600 Property, plant and equipment 6(7) and 8 2,423,666 16 2,420,736 17 3,014,679 22
1755 Right-of-use assets 6(8) 128,913 1 122,863 1 126,695 1
1760 Investment property 6(9) and 8 1,386,280 9 1,406,586 10 760,324 6
1780 Intangible assets 6(10) 292,424 2 215,261 1 236,238 2
1840 Deferred income tax assets 249,216 2 182,361 1 211,152 2
1900 Other non-current assets 39,653 - 34,746 - 40,382 -
15XX Non-current assets 6,006,682 40 5,892,914 40 5,836,575 43
1XXX Total assets $ 15,188,601 100 $ 14,718,146 100 $ 13,706,768 100
(Continued)
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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

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June 30, 2021 December 31, 2020 June 30, 2020
Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities
2100 Short-term borrowings 6(11) $ 2,400,000 16 $ 2,330,000 16 $ 2,580,000 19
2110 Short-term notes and bills 6(12)
payable 399,716 3 299,798 2 - -
2130 Current contract liabilities 167,516 1 32,568 - 33,159 -
2170 Accounts payable 1,520,733 10 1,296,475 9 713,543 5
2200 Other payables 562,847 4 485,953 4 518,773 4
2230 Current income tax liabilities 58,812 - 36,763 - 34,332 -
2250 Provisions for liabilities - 6(16)
current 11,134 - 9,295 - 7,136 -
2280 Current lease liabilities 10,529 - 9,336 - 7,192 -
2300 Other current liabilities 6(13) 203,861 1 437,093 3 220,234 2
21XX Current Liabilities 5,335,148 35 4,937,281 34 4,114,369 30
Non-current liabilities
2550 Provisions for liabilities - non- 6(16)
current 161,772 1 160,395 1 148,668 1
2570 Deferred income tax liabilities 492,791 3 464,691 3 478,380 4
2580 Non-current lease liabilities 100,787 1 95,176 1 91,805 1
2600 Other non-current liabilities 32,563 - 36,750 - 40,619 -
25XX Non-current liabilities 787,913 5 757,012 5 759,472 6
2XXX Total Liabilities 6,123,061 40 5,694,293 39 4,873,841 36
Equity attributable to owners of
parent
Share capital 6(17)
3110 Common stock 2,793,145 18 2,794,973 19 2,796,333 20
Capital surplus 6(18)
3200 Capital surplus 2,363,727 16 2,335,226 16 2,334,765 17
Retained earnings 6(19)
3310 Legal reserve 1,402,467 9 1,402,467 9 1,402,467 10
3320 Special reserve 592,325 4 592,325 4 592,325 4
3350 Unappropriated retained
earnings 2,206,558 14 2,249,655 15 2,172,038 16
Other equity interest 6(20)
3400 Other equity interest ( 791,643)( 5)( 697,698)( 5)( 816,398)( 6)
3500 Treasury stocks 6(17) ( 209,287)( 1)( 209,287)( 1)( 209,287)( 1)
31XX Equity attributable to
owners of the parent 8,357,292 55 8,467,661 57 8,272,243 60
36XX Non-controlling interest 708,248 5 556,192 4 560,684 4
3XXX Total equity 9,065,540 60 9,023,853 61 8,832,927 64
3X2X Total liabilities and equity $ 15,188,601 100 $ 14,718,146 100 $ 13,706,768 100
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The accompanying notes are an integral part of these consolidated financial statements.

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

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

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Three-month periods ended June 30 Six-month periods ended June 30
2021 2020 2021 2020
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
4000 Operating revenue 6(21) $ 2,302,341 100 $ 1,523,755 100 $ 4,283,204 100 $ 2,637,498 100
5000 Operating costs 6(6)(26)(27) ( 1,777,903) ( 77) ( 1,127,676) ( 74) ( 3,303,075) ( 77) ( 1,971,636) ( 75)
5900 Net operating margin 524,438 23 396,079 26 980,129 23 665,862 25
Operating expenses 6(26)(27)
6100 Selling expenses ( 12,720) ( 1) ( 13,855) ( 1) ( 24,566) ( 1) ( 29,367) ( 1)
6200 General and administrative
expenses ( 109,717) ( 5) ( 83,807) ( 5) ( 218,778) ( 5) ( 161,759) ( 6)
6300 Research and development
expenses ( 352,273) ( 15) ( 224,460) ( 15) ( 659,066) ( 15) ( 431,393) ( 16)
6450 Expected credit gains (losses) 12(2) ( 15) - 206 - 91 - 808 -
6000 Total operating expenses ( 474,725) ( 21) ( 321,916) ( 21) ( 902,319) ( 21) ( 621,711) ( 23)
6900 Operating profit 49,713 2 74,163 5 77,810 2 44,151 2
Non-operating income and
expenses
7100 Interest income 6(22) 17,369 1 26,105 2 36,376 1 59,068 2
7010 Other income 6(23) 12,102 - 12,363 1 30,371 1 27,036 1
7020 Other gains and losses 6(24) 19,471 1 3,832 - 28,124 - 4,322 -
7050 Finance costs 6(25) ( 6,224) - ( 6,344) ( 1) ( 12,464) - ( 12,686) -
7000 Total non-operating income
and expenses 42,718 2 35,956 2 82,407 2 77,740 3
7900 Profit before income tax 92,431 4 110,119 7 160,217 4 121,891 5
7950 Income tax expense 6(28) ( 20,907) ( 1) ( 33,719) ( 2) ( 47,890) ( 1) ( 46,957) ( 2)
8200 Profit for the period $ 71,524 3 $ 76,400 5 $ 112,327 3 $ 74,934 3
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(Continued)

~6~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

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

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Three-month periods ended June 30 Six month periods ended June 30
2021 2020 2021 2020
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 $ 19 - $ 116 - $ 428 - ($ 302) -
8349 Income tax related to 6(28)
components of other
comprehensive income that
will not be reclassified to
profit or loss 141 - ( 23) - ( 255) - 60 -
8310 Components of other
comprehensive (loss)
income that will not be
reclassified to profit or loss 160 - 93 - 173 - ( 242) -
Components of other
comprehensive income that will
be reclassified to profit or loss
8361 Currency translation
differences of foreign
operations ( 122,580) ( 5) ( 171,009) ( 11) ( 138,639) ( 3) ( 180,572) ( 7)
8399 Income tax relating to the 6(28)
components of other
comprehensive income 22,366 1 32,409 2 28,926 - 34,993 1
8360 Components of other
comprehensive loss that will
be reclassified to profit or
loss ( 100,214) ( 4) ( 138,600) ( 9) ( 109,713) ( 3) ( 145,579) ( 6)
8300 Total other comprehensive loss
for the period ($ 100,054) ( 4) ($ 138,507) ( 9) ($ 109,540) ( 3) ($ 145,821) ( 6)
8500 Total comprehensive income
(loss) for the period ($ 28,530) ( 1) ($ 62,107) ( 4) $ 2,787 - ($ 70,887) ( 3)
Profit (loss), attributable to:
8610 Owners of the parent $ 61,286 3 $ 50,354 3 $ 92,724 3 $ 81,818 3
8620 Non-controlling interest 10,238 - 26,046 2 19,603 - ( 6,884) -
Profit for the period $ 71,524 3 $ 76,400 5 $ 112,327 3 $ 74,934 3
Comprehensive (loss) income
attributable to:
8710 Owners of the parent ($ 28,019) ( 1) ($ 79,188) ( 5) ($ 22,807) ( 1) ($ 58,392) ( 2)
8720 Non-controlling interest ( 511) - 17,081 1 25,594 1 ( 12,495) ( 1)
Total comprehensive income
(loss) for the period ($ 28,530) ( 1) ($ 62,107) ( 4) $ 2,787 - ($ 70,887) ( 3)
9750 Basic earnings per share 6(29) $ 0.23 $ 0.19 $ 0.35 $ 0.31
9850 Diluted earnings per share 6(29) $ 0.23 $ 0.19 $ 0.34 $ 0.30
----- End of picture text -----

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

~7~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

==> picture [783 x 270] intentionally omitted <==

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Equity attributable to owners of the parent
Retained earnings Other equity interest
Currency translation
Additional paid-in Unappropriated differences of foreign Non-controlling
Notes Common stock capital Legal reserve Special reserve retained earnings operations Other Treasury stocks Total interest Total equity
Six-month period ended June 30, 2020
Balance at January 1, 2020 $ 2,753,613 $ 2,280,487 $ 1,394,151 $ 435,679 $ 2,394,976 ($ 494,335 ) ($ 121,024 ) $ - $ 8,643,547 $ 573,179 $ 9,216,726
Profit (loss) for the period - - - - 81,818 - - - 81,818 ( 6,884 ) 74,934
Other comprehensive loss for the period 6(20) - - - - - ( 139,968 ) ( 242 ) - ( 140,210 ) ( 5,611 ) ( 145,821 )
Total comprehensive income (loss) - - - - 81,818 ( 139,968 ) ( 242 ) - ( 58,392 ) ( 12,495 ) ( 70,887 )
Appropriation of 2019 earnings 6(19)
Legal reserve - - 8,316 - ( 8,316 ) - - - - - -
Special reserve - - - 156,646 ( 156,646 ) - - - - - -
Cash dividends - - - - ( 139,794 ) - - - ( 139,794 ) - ( 139,794 )
Share-based payment transactions 6(15)(20) - - - - - - 36,169 - 36,169 - 36,169
Restricted stocks 6(15)(17)(18)(20) 43,120 54,798 - - - - ( 97,918 ) - - - -
Retirement of employee restricted shares 6(15)(17)(18)(20) ( 400 ) ( 520 ) - - - - 920 - - - -
Treasury shares repurchased - - - - - - - ( 209,287 ) ( 209,287 ) - ( 209,287 )
Balance at June 30, 2020 $ 2,796,333 $ 2,334,765 $ 1,402,467 $ 592,325 $ 2,172,038 ($ 634,303 ) ($ 182,095 ) ($ 209,287 ) $ 8,272,243 $ 560,684 $ 8,832,927
Six-month period ended June 30,2021
Balance at January 1, 2021 $ 2,794,973 $ 2,335,226 $ 1,402,467 $ 592,325 $ 2,249,655 ($ 550,536 ) ($ 147,162 ) ($ 209,287 ) $ 8,467,661 $ 556,192 $ 9,023,853
Profit for the period - - - - 92,724 - - - 92,724 19,603 112,327
Other comprehensive income (loss) for the 6(20)
period - - - - - ( 115,704 ) 173 - ( 115,531 ) 5,991 ( 109,540 )
Total comprehensive income (loss) - - - - 92,724 ( 115,704 ) 173 - ( 22,807 ) 25,594 2,787
Appropriation of 2020 earnings 6(19)
Cash dividends - - - - ( 134,249 ) - - - ( 134,249 ) - ( 134,249 )
Share-based payment transactions 6(15)(18)(20) - 42,630 - - - - 15,888 - 58,518 - 58,518
Retirement of employee restricted shares 6(15)(17)(18)(20) ( 1,828 ) ( 2,298 ) - - - - 4,126 - - - -
Changes in ownership interests in subsidiaries 6(18) - ( 11,831 ) - - - - - - ( 11,831 ) 11,831 -
Non-controlling interest 6(30) - - - - - - - - - 114,631 114,631
Proceeds from disposal of financial assets at 6(3)(20)
fair value through other comprehensive
income - - - - ( 1,572 ) - 1,572 - - - -
Balance at June 30, 2021 $ 2,793,145 $ 2,363,727 $ 1,402,467 $ 592,325 $ 2,206,558 ($ 666,240 ) ($ 125,403 ) ($ 209,287 ) $ 8,357,292 $ 708,248 $ 9,065,540
----- End of picture text -----

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

~8~

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

(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 gains
Net gain on financial assets at fair value through
profit
Interest expense
Interest income
Share-based payment compensation cost
Gain on disposal of property, plant and
equipment
Changes in operating assets and liabilities
Changes in operating assets
Current contract assets
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 generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows from operating activities		 Six-month periods ended June 30
Notes
2021
2020
$
160,217
$
121,891
6(7)(8)(9)(26)
94,503
90,580
6(10)(26)
46,126
37,898
12(2)
(
91 ) (
808 )
6(2)(24)
(
27,624 ) (
1,511 )
6(25)
12,464
12,686
6(22)
(
36,376 ) (
59,068 )
6(15)
58,518
36,169
6(24)
320
-
4,414
-
(
176,249 )
7,055
(
7,024 )
2,558
(
265,206 )
129,360
(
46,059 ) (
70,244 )
(
5,287 ) (
2,473 )
135,009
(
823 )
-
(
4,287 )
240,638
(
277,034 )
(
51,877 ) (
42,849 )
3,227
13,434
16,870
19,565
31
63
156,544
12,162
42,530
59,066
(
10,751 ) (
11,497 )
(
37,042 ) (
37,158 )
151,281
22,573

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial asset at fair value through
profit or loss
Proceeds from disposals of financial asset at fair
value through profit or loss
Acquisition of financial assets at amortised cost
Proceeds from repayments of financial assets at
amortised cost
Acquisition of financial assets at fair value through
other comprehensive income
Proceeds from disposal of financial assets at fair
value through other comprehensive income
Proceeds from capital reduction of financial assets
at fair value through other comprehensive income
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets
Increase in deposits paid
Net cash flows from (used in) investing
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from 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
Repayment of long-term borrowings
(Decrease) increase in guarantee deposits received
Repayment of principal portion of lease liabilities
Acquisition of treasury stocks
Changes in non-controlling interest
Net cash flows from (used in) 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		 Six-month periods ended June 30
Notes
2021
2020
($
151,750 )
$
-
352,392
-
-
(
1,082,906 )
398,886
13,400
(
86,694 )
-
1,033
-
3,056
4,364
6(31)
(
95,579 ) (
8,147 )
138
-
6(31)
(
124,929 ) (
23,536 )
(
4,966) (
178)
291,587
(
1,097,003)
6(32)
7,280,000
7,560,000
6(32)
(
7,210,000 ) (
7,180,000 )
6(32)
898,951
229,629
6(32)
(
800,000 ) (
460,000 )
6(32)
(
250,000 )
-
(
4,002 )
11,750
6(32)
(
7,178 ) (
4,155 )
6(17)
-
(
209,287 )
114,631
-
22,402
(
52,063)
(
93,163) (
89,097)
372,107
(
1,215,590 )
6(1)
5,373,406
6,666,055
6(1)
$
5,745,513
$
5,450,465

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

~10~

ALTEK CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

(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 AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported to the Board of Directors and issued on August 6, 2021.

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 2021 are as follows:

follows:
New Standards,InterpretationsandAmendments Effective date by
International Accounting
StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from
applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest
Rate Benchmark Reform— Phase 2’
Amendment to IFRS 16, ‘Covid-19-related rent concessions
beyond 30 June 2021’
Note：Earlier application from January 1, 2021 is allowed by FSC.		 January 1, 2021
January 1, 2021
April 1, 2021(Note)

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~

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

the Group

the Group
New Standards,Interpretations and Amendments
Amendments to IFRS 3, ‘Reference to the conceptualframework’
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’
Annual improvements to IFRS Standards 2018–2020		 Effective date by
International Accounting
Standards Board
January 1, 2022
January 1, 2022
January 1, 2022
January 1, 2022

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:
NewStandards,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’
Amendments to IFRS 17, ‘Insurance contracts’
Amendments to IAS 1, ‘Classification of liabilities as current or
non-current’
Amendments to IAS 1, ‘Disclosure of accounting policies’
Amendments to IAS 8, ‘Definition of accounting estimates’
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities
arising from a single transaction’		 To be determined by
International Accounting
Standards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023

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

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, 2020, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. 

~12~

(1) Compliance statement

  • A. The consolidated financial statements of the Group have been prepared in accordance with the "Regulations 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 2020 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 recognised 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 2020 consolidated financial statements.

  • B. Subsidiaries included in the consolidated financial statements:

(Blank below) 

~13~
Name of Investor Name ofSubsidiaries Main BusinessActivities Ownership (%) Note
June 30,2021
100
100
100
100
100
100
50
100
100
100
82.18
100
100
100
100
75
100
100
100
100		 December31,2020
100
100
100
100
100
100
50
100
100
100
100
100
100
100
100
100
100
100
100
-		 June 30,2020
Altek Corporation
"
"
"
Altek International Investment Co., Ltd.
"
"
"
"
"
Altek International Holding (BVI) Co., Ltd.
Note 1
Note 1
Note 1
Note 1
Altek Optical Technology (Cayman) Co.,
Ltd.
Altek Semiconductor (Cayman) Co., Ltd.
"
Altek Medical Holding (Cayman) Co., Ltd.
Altek Investment Corporation		 Altek International Investment Co., Ltd.
Altek Japan Corporation
Altek International Holding (BVI) Co., Ltd.
Altek Investment Corporation
Altek Lab Inc.
Altek Optical (Cayman) Co., Ltd.
Altek Semiconductor (Cayman) Co., Ltd.
Altek Optical Technology (Cayman) Co., Ltd.
Altek Imaging Technology (Cayman) Co., Ltd.
Altek International Trading Co., Ltd.
Altek Medical Holding (Cayman) Co., Ltd.
Altek (Kunshan) Co., Ltd.
Altek EMS (Kunshan) Co., Ltd.
Altek Precision (Kunshan) Co., Ltd.
Altek Trading (Shanghai) Limited
Altek Optical Technology (Kunshan) Co., Ltd.
Altek Semiconductor Corporation
Altek Semiconductor (Shanghai) Co., Ltd.
Altek Biotechnology Corporation
Ptek Corporation		 Investments
Sales of optical instruments
Investments
Investments
Design service
Investments
Investments
Investments
Investments
Intercompany transactions
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
Manufacture and sales of photo electron device,
optical instrument, camera and equipment
Research design and sales of ASIC
Research design and sales of imaging technologies,
electronic software and hardware
Research and development, manufacture and sales of
medical electronic equipments
Product development and design		 100
100
100
-
100
100
50
100
100
100
100
100
100
100
100
100
100
100
100
-		 -
Note 8
Note 7
Note 2
Note 8
Note 8
Note 8
Note 8
Note 8
Note 8
Note 8
Note 3
Note 6
Note 7
-
Note 8
Note 8
Note 8
Note 4
Note 8
Note 9
Note 8
Note 6
Note 5
Note10

Note 1: Invested by Leading Tech. Co., Ltd., Toptek Investment Cayman Co., Ltd., Ltd., Altek Trading (Cayman) Co., Ltd., which are wholly owned by Altek International Investment Co., Ltd. Note 2: Invested by Altek Corporation and established on September, 2020.

Note 3: The subsidiary increased its capital, but the Group did not acquire and sell shares of the subsidiary. As a result, the Group’s shareholding ratio decreased since 2021. Note 4: The Group sold 25% of share in Altek Optical Technology (Kunshan) Co., Ltd. on January 6, 2021. As a result, the Group’s that its shareholding ratio decreased. Note 5: Invested by Altek Investment Corporation and established on April, 2021.

Note 6: Altek Biotechnology Holding (Cayman) Co., Ltd. changed its name to Altek Medical Holding (Cayman) Co., Ltd. since June 8, 2021. Note 7: As the subsidiaries meet the definition of significant subsidiaries, the financial statements as of June 30, 2021 were reviewed by independent auditors.

As the subsidiaries did not meet the definition of significant subsidiaries, the financial statements as of June 30, 2020 were not reviewed by independent auditors.

Note 8: As the subsidiaries did not meet the definition of significant subsidiaries, the financial statements as of June 30, 2021 and 2020 were not reviewed by independent auditors. Note 9: For this non-significant subsidiaries, the financial statements as of June 30, 2021 and 2020 were reviewed by independent auditors.

Note 10: For this non-significant subsidiaries, the financial statements as of June 30, 2021 were not reviewed by independent auditors. 

~14~

  • 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) 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.

(5) Income tax

  • A. The interim period income tax expense is recognised 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 recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognised in profit or loss.

  • Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

There have been no significant changes as of June 30, 2021. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2020.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS
Cash and cash equivalents
Cash on hand revolving funds
Checking accounts and demand
deposits
Time deposits
Total		 June 30,2021
December 31,2020
1,026
$ 1,052
$ 2,025,579
1,260,822
3,718,908
4,111,532
5,745,513
$ 5,373,406
$		 June 30,2020
908
$ 701,694
4,747,863
5,450,465
$

  • 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. 

~15~

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

Items
Current items:
Financial assets mandatorily measured
at fair value through profit or loss
Structured deposits
Valuation adjustment
Total
Non-current items:
Financial assets mandatorily measured
at fair value through profit or loss
Unlisted stocks
Valuation adjustment
Total		 June 30,2021
December 31,2020
150,942
$ 349,186
$ 1,103
478
152,045
$ 349,664
$ 10,312
$ 10,312
$ 59,372
37,917
69,684
$ 48,229
$		 June 30,2020
-
$ -
-
$
10,312
$ 31,355
41,667
$
  • A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:
loss are listed below:
Equity instruments
Structured deposit
Total
Equity instruments
Structured deposit
Total		 For the three-month
period ended
June 30,2021
9,949
$ 3,682
13,631
$ For the six-month
period ended
June 30,2021
21,455
$ 6,169
27,624
$		 For the three-month
period ended
June 30,2020
5,440
$ -
5,440
$
For the six-month
period ended
June 30,2020
1,511
$ -
1,511
$

  • B. The Group has no financial assets at fair value through profit or loss pledged to others as at June 30, 2021, December 31, 2020, and June 30, 2020.

  • C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

Items
Non-current items:
Equity instruments
Unlisted stocks
Valuation adjustment

Total		 June 30,2021
December 31,2020
221,902
$ 144,405
$ 99,275)
(
101,275)
(

122,627
$ 43,130
$		 June 30,2020
142,579
$ 97,790)
(
44,789
$		 
~16~

  • A. The Group has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $122,627, $43,130 and $44,789 as at June 30, 2021, December 31, 2020, and June 30, 2020, respectively.

  • B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income amounted to $19, $116, $428 and ($302) for the three-month and six-month periods ended June 30, 2021 and 2020, respectively. For the six-month periods ended June 30, 2021, the accumulated loss due to delisting and transferring returned surplus was $0 and $1,572, respectively.

  • C. The Group has no financial assets at fair value through profit or loss as at June 30, 2021, December 31, 2020, and June 30, 2020 pledged to others.

(4) Financial assets at amortised cost

Financial assets at amortised cost
Items
Current items:
Time deposit with maturity from
three months to one year
Non-current items:
Time deposit with maturity
over one year		 June 30,2021
December 31,2020
129,379
$ 423,387
$ 1,294,219
$ 1,419,002
$		 June 30,2020
405,976
$
1,360,649
$
  • 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
June 30,2021
11,317
$ For the six-month
period ended
June 30,2021
23,593
$		 For the three-month
period ended
June 30,2020
12,647
$
For the six-month
period ended
June 30,2020
19,578
$

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

  • C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(5) Accounts receivable

Accounts receivable
Less: Allowance for uncollectible
accounts
(		 June 30,2021
December 31,2020
1,448,410
$ 1,273,648
$ 175)

265)
(
(
1,448,235
$ 1,273,383
$		 June 30,2020
910,439
$ 188)

910,251
$		 
~17~

A. The ageing analysis of accounts receivable that was past due but not impaired is as follows:

Not past due
Up to 30 days
31 to 90 days		 June 30,2021
December31,2020
1,439,314
$ 1,257,413
$ 9,096
8,351
-
7,884
1,448,410
$ 1,273,648
$		 June 30,2020
869,038
$ 11,771
29,630
910,439
$

The above ageing analysis was based on past due date.

  • B. As of June 30, 2021, December 31, 2020, and June 30, 2020, accounts receivable were all from contracts with customers. And as of January 1, 2020, the balance of accounts receivable and notes receivable from contracts with customers amounted to $918,019.

  • C. The Group’s accounts receivable do not hold any collateral provided by customers.

  • D. As at June 30, 2021, December 31, 2020, and June 30, 2020, 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 and accounts receivable was $1,448,235, $1,273,383 and $910,251, respectively.

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

(6) Inventories

Inventories
Raw materials
Work in progress
Finished goods
Total
Raw materials
Work in progress
Finished goods
Total
Raw materials
Work in progress
Finished goods
Total		 Cost
1,055,908
$ 180,910
159,537
1,396,355
$		 June 30,2021
Allowance for
valuation loss
24,695)
($ 4,075)
(
9,004)
(
37,774)
($ December31,2020		 Book value
1,031,213
$ 176,835
150,533
1,358,581
$
December31,2020
Cost
771,902
$ 165,380
208,592
1,145,874
$
Cost
612,158
$ 161,039
154,293
927,490
$		 
~18~

The cost of inventories recognised as expense for the period:

Cost of goods sold and others
Loss (gain on reversal of) decline in market value
Total
Cost of goods sold and others
Gain on reversal of decline in market value

Total		 For the three-month
period ended
June 30,2021
1,772,450
$ 5,453

1,777,903
$ For the six-month
period ended
June 30,2021
3,304,449
$ 1,374)
(

3,303,075
$		 For the three-month
period ended
June 30,2020
1,141,052
$ 13,376)
(
1,127,676
$ For the six-month
period ended
June 30,2020
1,986,702
$ 15,066)
(
1,971,636
$

For the three-month and six-month periods ended June 30, 2021 and 2020, the Group reversed a previous inventory write-down and accounted for as reduction of cost of goods sold because inventory that has been appropriated as loss on decline in market value was partially sold. 

~19~

(7) 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 June 30
Cost
Accumulated depreciation		 2021 
~20~

2020

At January 1
Cost
Accumulated depreciation
Opening net book amount
Additions
Reclassifications
Depreciation charge
Net exchange differences
Closing net book amount
At June 30
Cost
Accumulated depreciation		 Construction in
progress and
Buildings and
prepayment for
Land
structures
Machinery
Testequipment
equipment
Others
Total
468,684
$ 3,243,125
$ 901,360
$ 153,649
$ 3,901
$ 406,631
$ 5,177,350
$ -
832,133)
(
665,486)
(
147,799)
(
-
396,238)
(
2,041,656)
(
468,684
$ 2,410,992
$ 235,874
$ 5,850
$ 3,901
$ 10,393
$ 3,135,694
$ 468,684
$ 2,410,992
$ 235,874
$ 5,850
$ 3,901
$ 10,393
$ 3,135,694
$ -
325
1,370
2,381
2,596
1,033
7,705
-
325
-
-
325)
(
-
-
-
42,709)
(
36,268)
(
1,344)
(
-
2,582)
(
82,903)
(
-
40,086)
(
5,476)
(
32)
(
88)
(
135)
(
45,817)
(
468,684
$ 2,328,847
$ 195,500
$ 6,855
$ 6,084
$ 8,709
$ 3,014,679
$ 468,684
$ 3,189,860
$ 879,769
$ 153,585
$ 6,084
$ 402,639
$ 5,100,621
$ -
861,013)
(
684,269)
(
146,730)
(
-
393,930)
(
2,085,942)
(
468,684
$ 2,328,847
$ 195,500
$ 6,855
$ 6,084
$ 8,709
$ 3,014,679
$

  • A. For the six-month periods ended June 30, 2021 and 2020, 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. 

~21~

－ (8) Leasing arrangements lessee

  • 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 of buildings and equipment. Low-value assets comprise of printers.

  • C. The carrying amount of the depreciation charge are as follows:

Low-value assets comprise of printers.
The carrying amount of the depreciation charge are as follows:
n charge are as follows:
n charge are as follows:
n charge are as follows:
June 30,2021
December 31,2020
June 30,2020
Land
108,369
$ 110,455
$ 121,118
$ Buildings
12,508
1,421
2,270
Transportation equipment
(Business vehicles)
8,036
10,987
3,307
128,913
$ 122,863
$ 126,695
$ Carryingamount
For the three-month
period ended
For the three-month
period ended
June 30,2021
June 30,2020
Land
928
$ 997
$ Buildings
1,310
460
Transportation equipment (Business vehicles)
1,342
749
3,580
$ 2,206
$ For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
Land
1,856
$ 1,998
$ Buildings
2,341
772
Transportation equipment (Business vehicles)
2,951
1,498
7,148
$ 4,268
$ Depreciation charge
Depreciation charge		 Carryingamount
June 30,2020
121,118
$ 2,270
3,307
126,695
$
For the three-month
period ended
For the three-month
period ended
June 30,2021
June 30,2020
928
$ 997
$ 1,310
460
1,342
749
3,580
$ 2,206
$ Depreciation charge		 For the three-month
period ended
June 30,2020
997
$ 460
749
2,206
$
For the six-month
period ended
June 30,2021
1,856
$ 2,341
2,951
7,148
$		 For the six-month
period ended
June 30,2020
1,998
$ 772
1,498
4,268
$
  • D. For the three-month and six-month periods ended June 30, 2021 and 2020, the additions to rightof-use assets were $0, $0, $13,440 and $0, respectively. 
~22~

E. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss
Interest expense on lease liabilities
Expense on short-term lease contracts
Expense on leases of low-value assets
Items affecting profit or loss
Interest expense on lease liabilities
Expense on short-term lease contracts
Expense on leases of low-value assets		 For the three-month
period ended
June 30,2021
277
$ 1,153
11
For the six-month
period ended
June 30,2021
554
$ 3,041
38		 For the three-month
period ended
June 30,2020
285
$ 2,001
29
For the six-month
period ended
June 30,2020
570
$ 4,019
58

  • F. For the six-month periods ended June 30, 2021 and 2020, the Group’s total cash outflow for leases were $10,257 and $8,232, respectively.

  • G. 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.

(9) Investment property

Investment property
2021
Land Buildings and structures Total
At January 1
Cost $ 587,286
 $ 1,054,765
 $ 1,642,051
Accumulated depreciation ( 3,879) ( 231,586) ( 235,465)
$ 583,407
 $ 823,179
 $ 1,406,586
At January 1 $ 583,407
 $ 823,179
 $ 1,406,586
Depreciation charge ( 148)
 ( 12,439)
 ( 12,587)
Net exchange differences ( 117) ( 7,602) ( 7,719)
At June 30 $ 583,142
 $ 803,138
 $ 1,386,280
At June 30
Cost $ 587,122
 $ 1,045,091
 $ 1,632,213
Accumulated depreciation ( 3,980) ( 241,953) ( 245,933)
$ 583,142
 $ 803,138
 $ 1,386,280
 
~23~
At January 1
Cost
Accumulated depreciation
At January 1
Depreciation charge
At June 30
At June 30
Cost
Accumulated depreciation		 2020 Total
819,242
$ 55,509)

763,733
$ 763,733
$ 3,409)

760,324
$ 819,242
$ 58,918)

760,324
$
Land
573,532
$ -
(
573,532
$ 573,532
$ -
(
573,532
$ 573,532
$ -
(
573,532
$		 Buildingsand structures
245,710
$ 55,509)

(
190,201
$ 190,201
$ 3,409)

(
186,792
$ 245,710
$ 58,918)

(
186,792
$
  • A. Rental income from investment property and direct operating expenses arising from investment property are shown below:
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 year		 For the three-month
period ended
June 30,2021
23,019
$ 11,284
$ For the six-month
period ended
June 30,2021
46,069
$ 20,842
$		 For the three-month
period ended
June 30,2020
6,772
$
2,058
$
For the six-month
period ended
June 30,2020
13,305
$
4,133
$

  • B. The fair value of the investment property held by the Group as at June 30, 2021, December 31, 2020, and June 30, 2020 all amounted to $1,642,950, $1,632,152 and $870,022, respectively, which were valued by independent appraisers. Valuations were made using the comparative method and income approach to perform evaluation capitalization.

  • C. There was no capitalization 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. 

~24~

(10) Intangible assets

Intangible assets
2021 2020
At January 1
Cost $ 380,197
 $ 245,090
Accumulated amortisation ( 164,936) ( 91,549)
$ 215,261
 $ 153,541
At January 1 $ 215,261
 $ 153,541
Additions 124,651 23,536
Adjustments - 97,837
Amortisation charge ( 46,126)
 ( 37,898)
Net exchange differences ( 1,362) ( 778)
At June 30 $ 292,424
 $ 236,238
At June 30
Cost $ 450,244
 $ 348,856
Accumulated amortisation ( 157,820) ( 112,618)
$ 292,424
 $ 236,238
A. Details of amortisation on intangible assets are as follows:
For the three-month For the three-month
period ended period ended
June 30,2021 June 30,2020
Operating costs $ 30
 $ 39
Operating expense 22,739 20,862
$ 22,769
 $ 20,901
For the six-month For the six-month
period ended period ended
June 30,2021 June 30,2020
Operating costs $ 68
 $ 79
Operating expense 46,058 37,819
$ 46,126
 $ 37,898

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

(11) Short-term borrowings

Short-term borrowings
Type of borrowings
Bank borrowings
Unsecured borrowings
Type of borrowings
Bank borrowings
Unsecured borrowings		 June 30,2021
2,400,000
$ December 31,2020
2,330,000
$		 Interest rate range
0.82%~1%
Interest rate range
0.82%~0.94%		 Collateral
None
Collateral
None 
~25~
(12) Short-term notes and bills payable
Type ofborrowings
June
Bank borrowings
Unsecured borrowings
$ Commercial paper payable
Less: Discount on short-term notes
and bills payable

Interest rate ranges		 June 30,2020
Interestraterange
2,580,000

0.82% ~1%
June 30,2021
December 31,2020
400,000
$ 300,000
$ 284)
(
202)
(
399,716
$ 299,798
$ 0.84%~0.88%
0.85%~0.87%		 Collateral
None
June 30,2020
$
-
$ -
-
$
-
  • (13) Long term borrowings
Long-term borrowings
Borrowing period Interest rate
Type ofborrowings andrepayment term range Collateral December 31,2020
Secured borrowings Borrowing period is
from August 24, 2018 to
May 8, 2021. Revolving Yes
credit facility. 0.8%~1% (Note) $ 250,000
Less: Current portion (classified under other current liabilities) ( 250,000)
$ -

As at June 30, 2021 and 2020: None.

During the terms of the unsecured borrowing, in accordance with the unsecured borrowing agreements contracted with bank, the Group is required to maintain a consolidated net value over $8 billion and a 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. The mortgage has been cancelled on June 28, 2021.

(14) 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 Group 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 

~26~

committee. 

  - (b) For the aforementioned pension plan, the Group recognised pension costs of $0, $0, $43 and $76 for the three-month and six-month periods ended June 30, 2021 and 2020, respectively.

  - (c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2022 amount 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. The pension costs under defined contribution pension plans of the Group for the three-month and six-month periods ended June 30, 2021 and 2020, were $8,693, $7,394, $16,341 and $14,619, respectively, under the above pension scheme.

    • (b) The foreign 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 recognised pension costs of $4,053, ($815), $7,959 and $1,522 for the three-month and sixmonth periods ended June 30, 2021 and 2020, respectively.

  • (15) Share-based payments

  • A. For the six-month periods ended June 30, 2021 and 2020, the Group’s share-based payment arrangements were as follows:

arrangements were as follows:
Type of arrangement Grant date Quantity
granted
(share in
thousands)		 Contract
period		 Vesting
conditions
Employee stock options
"
Plan for restricted shares to
employee(2018-1)
"
Plan for restricted shares to
employee(2019-1)
"
"
Treasury stock transferred to
employees
"		 October 28, 2011
March 21, 2012
August 12, 2019
January 20, 2020
August 12, 2019
January 20, 2020
April 24, 2020
March 9, 2020
May 17, 2021		 3,000
3,000
630
2,196
820
2,030
86
2,000
2,000		 9.2 years
8.9 years
3 years
3 years
3 years
3 years
3 years
-
-		 Note 1
Note 1
Note 2, Note 3
Note 2, Note 3
Note 2, Note 3
Note 2, Note 3
Note 2, Note 3
Immediately
vested
Immediately
vested		 
~27~

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 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.

  • Note 3: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 six-month periods ended June 30, 2021 and 2020, the information on the share options and the weighted number of average exercise price of compensation plan employee stock options are as follows:

options are as follows:
Options outstanding at
beginning of the period
Option expired
Options outstanding at end
of the period
Options exercisable at end
of the period		 Weighted-average
exercise price
No. of options
(in NT dollars)(Note)
-
-
$ -
-

-
-
-
-
June 30,2021
For the six-month period ended		 Weighted-average
exercise price
No. of options
(in NT dollars)(Note)
1,701
29.81
$ 60)
(
29.40
1,641
29.35
1,641
29.35
June 30,2020
For the six-month period ended
No. of options
-
-
-
-		 No. of options
1,701
60)
(
1,641
1,641
29.81
$ 29.40
29.35
29.35

  • 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 six-month periods ended June 30, 2021 and 2020.

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

June 30, 2021: None.

Issue dateapproved Expiry date December Exercise price
(in NT dollars)
(Note)
28.8
$ 28.7
$ 31,2020		 June 30,2020 June 30,2020
No. of shares
(in thousands)
-
-		 No. of shares
(in thousands)
860
781		 Exercise price
(in NT dollars)
(Note)
October 28, 2011
March 21, 2012		 December 31, 2020
December 31, 2020		 29.4
$ 29.3
$

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

~28~
  • (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 NT
dollars)		 Exercise
price
(Note)
(in NT
dollars)		 Expected
price
volatility		 Expected
option
life		 Expected
dividends		 Risk-
free
interest
rate		 Fair value
per unit
(in NT
dollars)
Employee
stock options
"		 -
-		 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:

  • (a) The information on restricted shares to employees is as follows (share in thousands):

For the six-month
period ended
June 30,2021
Shares ungranted beginning balance
4,968
Given at period (Notes 1 and 2)
-
Shares exercised
1,604)
(
Shares forfeited - retired
183)
(

Shares ungranted ending balance
3,181		 For the six-month
period ended
June 30,2020
1,350
4,312
-
40)
(
5,622
  • Note 1: For the restricted stocks granted with the compensation cost accounted for using the

fair vale method, the fair values on the grant date are calculated based on the closing price on the grant date. 

  - Note 2: The fair value of restricted stocks granted in January 20 and April 24, 2020 was $22.8 (in NT dollars) and $18.2 (in NT dollars).

  • (b) For the six-month period ended June 30, 2021, the Company collected 183 thousand shares of restricted shares because certain employees did not meet the vesting condition, and the change of registration has been completed.

  • D. For the six-month periods ended June 30, 2021 the weighted-average exercise price of treasury stock transferred to employees was $20.37(in NT dollars).

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

For the three-month For the three-month period ended period ended June 30, 2021 June 30, 2020 Equity-settled $ 23,812 $ 20,598 

~29~
(16) Provisions
Equity-settled
At January 1, 2021
Additional provisions
Reversed during the period
Exchange differences
At June 30, 2021
Current
Non-current		 June 30,2021
11,134
$ 161,772
$		 For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
58,518
$ 36,169
$ Warranty
169,690
$ 13,222
9,995)
(
11)
(
172,906
$ December 31,2020
June 30,2020
9,295
$ 7,136
$ 160,395
$ 148,668
$

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.

(17) Share capital

As of June 30, 2021, the Company’s authorised capital was $5,000,000, consisting of 500,000 thousand shares of ordinary stock, and the paid-in capital was $2,793,145 with a par value of $10 (in NT dollars) per share.

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

(share in thousands):
2021 2020
At January 1 268,497 275,361
Establish employee restricted shares - 4,312
Retired restricted shares to employees that
did not meet the vesting conditions ( 183)
 ( 40)
Shares repurchases - ( 11,000)
At June 30 268,314 268,633 
~30~

B. Treasury shares

  • (a) Reason for share reacquisition and the number of the Company’s treasury shares are as follows :
follows :
Name of company
holdingthe shares		 Reason for reacquisition
To be reissued to employees
Reason for reacquisition

To be reissued to employees
Reason for reacquisition

To be reissued to employees		 Number of shares
(share in thousands)
Carryingamount
11,000
209,287
$ June 30,2021
Number of shares
(sharein thousands)
Carryingamount
11,000
209,287
$ December31,2020
Number of shares
(sharein thousands)
Carryingamount
11,000
209,287
$ June 30,2020
The Company
Name of company
holdingthe shares
The Company
Name of company
holdingthe shares
The Company

  • (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

  • (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

  • (d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired.

(18) 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. 

~31~

2021

At January 1
Changes in ownership
interests in subsidiaries
Treasury stock transferred
to employees
Vested restricted
shares to employees
Retired restricted shares to
employees that did not
meet the vesting conditions
At June 30		 Share
Employee
stock
premium
options
1,821,473
$ 49,102
$ -
-
-
42,630
20,427
-
-
-
1,841,900
$ 91,732
$		 Difference
between
consideration and
carrying amount
of subsidiaries
acquired or
Changes in
ownership
interests in
disposed
subsidiaries
1,534
$ 397,909
$ -
11,831)
(
-
-
-
-
-
-
1,534
$ 386,078
$		 Proceeds
from sales
of treasury
Restricted
shares to
shares
employees
Total
1,455
$ 63,753
$ 2,335,226
$ -
-
11,831)
(
-
-
42,630
-
20,427)
(
-
-
2,298)
(
2,298)
(
1,455
$ 41,028
$ 2,363,727
$		 Total
2,363,727
$
At January 1
Issuance of restricted
shares to employees
Retirement of employee
restricted shares
At June 30		 2020 Total
2,280,487
$ 54,798
520)

2,334,765
$
Share
Employee
stock
Difference
between
consideration and
carrying amount
of subsidiaries
acquired or
premium
options
disposed
1,814,532
$ 49,102
$ 1,534
$ -
-
-
-
-
-
1,814,532
$ 49,102
$ 1,534
$		 Changes in
ownership
interests in
subsidiaries
395,774
$ -
-
395,774
$		 Proceeds
from sales
of treasury
shares
1,455
$ -
-
(
1,455
$		 Restricted
shares to
employees
18,090
$ 54,798
520)

(
72,368
$

(19) 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. The remaining amount plus the unappropriated earnings of prior years were distributed in new shares, which were proposed by the Board of Directors and resolved at the shareholders’ meeting.

All or some of the dividends and bonus could, 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, be distributed in the form of cash and reported at the shareholders’ meeting. 

~32~

  • 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.

  • 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 Order No. Financial-Supervisory-Securities-Corporate1010012865, 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 2020 earnings had been proposed at the Board of Directors’ meeting on March 25, 2021, and the appropriation of 2019 earnings had been resolved at the stockholders’ meeting on June 12, 2020. Details are summarized below:

Legal reserve
Special reserve
Cash dividends		 Dividends per share
Amount
(inNTdollars)
15,943
$ 59,231
134,249
0.5
$ 209,423
$ 2020		 2019 2019
Amount
15,943
$ 59,231
134,249
209,423
$		 Amount
8,316
$ 156,646
139,794
304,756
$		 Dividends per share
(inNTdollars)
0.5
$

Aforementioned distribution of 2020 earnings, except cash dividends were resolved and approved by the Board of Directors on March 25, 2021, others were pending for approval from the shareholders. The appropriation of 2019 earnings were the same as that approved by the Board of Directors on March 20, 2020. 

~33~

(20) Other equity items

Other equity items
2021
Unrealized
Foreign currency losses on Unearned
translation valuation compensation Total
At January 1 ($ 550,536)
 ($ 101,020)
 ($ 46,142)
 ($ 697,698)
Valuation adjustment - 173 - 173
Valuation adjustment to retained - 1,572 - 1,572
earnings
Currency translation differences:
-Group ( 115,704)
 - - ( 115,704)
Retirement of restricted shares
to employees - - 4,126 4,126
Share-based payment transactions - - 15,888 15,888
At June 30 ($ 666,240)
 ($ 99,275)
 ($ 26,128)
 ($ 791,643)
2020
Unrealized
Foreign currency losses on Unearned
translation valuation compensation Total
At January 1 ($ 494,335)
 ($ 97,990)
 ($ 23,034)
 ($ 615,359)
Valuation adjustment - ( 242)
 - ( 242)
Currency translation differences:
-Group ( 139,968)
 - - ( 139,968)
Issuance of restricted shares to
employees - - ( 97,918)
 ( 97,918)
Retirement of restricted shares - - 920 920
to employees
Share-based payment transactions - - 36,169 36,169
At June 30 ($ 634,303)
 ($ 98,232)
 ($ 83,863)
 ($ 816,398)
Operating revenue
For the three-month For the three-month
period ended period ended
June 30,2021 June 30,2020
Revenue from contracts with customers $ 2,302,341
 $ 1,523,755
For the six-month For the six-month
period ended period ended
June 30,2021 June 30,2020
Revenue from contracts with customers $ 4,283,204
 $ 2,637,498

(21) Operating revenue

~34~

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 major geographical regions:

For the three-month
period ended
June 30,2021
Revenue from external
customer contracts
Timing of revenue
recognition
At a point in time
Over time
Total
For the three-month
period ended
June 30,2020
Revenue from external
customer contracts
Timing of revenue
recognition
At a point in time
Over time
Total
For the six-month
period ended
June 30,2021
Revenue from external
customer contracts
Timing of revenue
recognition
At a point in time
Over time
Total		 Asia
1,363,458
$ 1,353,225
$ 10,233
1,363,458
$ Asia
892,587
$ 870,440
$ 22,147
892,587
$ Asia
2,544,037
$ 2,523,571
$ 20,466
2,544,037
$		 Europe
290,680
$ 290,680
$ -
290,680
$ Europe
319,701
$ 319,701
$ -
319,701
$ Europe
540,791
$ 540,791
$ -
540,791
$		 America
643,967
$ 643,967
$ -
643,967
$ America
282,042
$ 282,042
$ -
282,042
$ America
1,193,659
$ 1,193,659
$ -
1,193,659
$		 Taiwan
4,236
$ 4,236
$ -
4,236
$ Taiwan
29,425
$ 29,425
$ -
29,425
$ Taiwan
4,717
$ 4,717
$ -
4,717
$		 Total
2,302,341
$
2,292,108
$ 10,233
2,302,341
$
Total
1,523,755
$
1,501,608
$ 22,147
1,523,755
$
Total
4,283,204
$
4,262,738
$ 20,466
4,283,204
$		 
~35~
For the six-month
period ended
June 30,2020
Revenue from external
customer contracts
Timing of revenue
recognition
At a point in time
Over time
Total		 Asia
1,362,385
$ 1,317,554
$ 44,831
1,362,385
$		 Europe
504,485
$ 504,485
$ -
504,485
$		 America
653,464
$ 653,464
$ -
653,464
$		 Taiwan
117,164
$ 117,164
$ -
117,164
$		 Total
2,637,498
$
2,592,667
$ 44,831
2,637,498
$

(22) Interest income

Interest income
Other income
Interest income from bank deposits
Interest income from financial assets
measured at amortised cost
Other interest income
Interest income from bank deposits
Interest income from financial assets
measured at amortised cost
Other interest income
Rent income
Other income - others
Rent income
Other income - others		 For the three-month
period ended
June 30,2021
6,041
$ 11,317
11
17,369
$ For the six-month
period ended
June 30,2021
12,754
$ 23,593
29
36,376
$ For the three-month
period ended
June 30,2021
8,868
$ 3,234
12,102
$ For the six-month
period ended
June 30,2021
22,350
$ 8,021
30,371
$		 For the three-month
period ended
June 30,2020
13,450
$ 12,647
8
26,105
$
For the six-month
period ended
June 30,2020
39,475
$ 19,578
15
59,068
$
For the three-month
period ended
June 30,2020
10,898
$ 1,465
12,363
$
For the six-month
period ended
June 30,2020
21,181
$ 5,855
27,036
$

(23) Other income

~36~

(24) Other gains and losses

Other gains and losses
For the three-month For the three-month
period ended period ended
June 30,2021 June 30,2020
Loss on disposal of property, plant and
equipment ($ 389)
 $ -
Net currency exchange gains (losses) 6,265 ( 82)
Net gains on financial assets at fair value
through profit 13,631 5,440
Other expenses ( 36) ( 1,526)
Total $ 19,471
 $ 3,832
For the six-month For the six-month
period ended period ended
June 30,2021 June 30,2020
Loss on disposal of property, plant and
equipment ($ 320)
 $ -
Net currency exchange gains 898 4,342
Net gains on financial assets at fair value
through profit 27,624 1,511
Other expenses ( 78) ( 1,531)
Total $ 28,124
 $ 4,322
Finance costs
For the three-month For the three-month
period ended period ended
June 30,2021 June 30,2020
Interest expense :
Bank loan $ 5,482
 $ 6,059
Lease liabilities 277 285
Other 465 -
$ 6,224
 $ 6,344
For the six-month For the six-month
period ended period ended
June 30,2021 June 30,2020
Interest expense :
Bank loan $ 10,943
 $ 11,707
Lease liabilities 554 570
Other 967 409
$ 12,464
 $ 12,686

(25) Finance costs

~37~

(26) Expenses by nature

Expenses by nature
Employee benefit expenses
Employee benefit expenses
Depreciation charges on property, plant and
equipment
Depreciation charges on right-of-use assets
Depreciation charges on investment property
Amortisation charges on intangible assets
Employee benefit expenses
Depreciation charges on property, plant and
equipment
Depreciation charges on right-of-use assets
Depreciation charges on investment property
Amortisation charges on intangible assets
Wages and salaries
Labour and health insurance fees
Pension costs
Other personnel expenses
Total
Wages and salaries
Labour and health insurance fees
Pension costs
Other personnel expenses
Total		 For the three-month
period ended
June 30,2021
374,891
$ 37,701
3,580
6,291
22,769
For the six-month
period ended
June 30,2021
719,273
$ 74,768
7,148
12,587
46,126
For the three-month
period ended
June 30,2021
337,269
$ 15,357
12,746
9,519
374,891
$ For the six-month
period ended
June 30,2021
645,989
$ 30,522
24,343
18,419
719,273
$		 For the three-month
period ended
June 30,2020
300,273
$ 41,143
2,206
1,704
20,901
For the six-month
period ended
June 30,2020
556,349
$ 82,903
4,268
3,409
37,898
For the three-month
period ended
June 30,2020
274,024
$ 11,949
6,579
7,721
300,273
$
For the six-month
period ended
June 30,2020
500,850
$ 24,971
16,217
14,311
556,349
$

(27) Employee benefit expenses

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 

~38~

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 six-month periods ended June 30, 2021 and 2020, employees’ compensation was accrued at $11,892, $10,931, $17,621 and $17,584, respectively; directors’ remuneration was accrued at $1,585, $1,457, $2,349 and $2,344, respectively. The aforementioned amounts were recognised in salary expenses.

    • Employees’ compensation and directors’ and supervisors’ remuneration for 2020 amounting to $31,624 and $4,217, respectively, as resolved at the meeting of Board of Directors were in agreement with those amounts recognised in the 2020 financial statements.

    • Information about employees’ compensation and directors’ 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:
Current tax:
Current tax on profits for the period
Charge on unassigned retained earnings
Tax paid outside of the territory of
the Republic of China
Prior year income tax over estimation

Total current tax
Deferred tax:
Origination and reversal of
temporary differences

Income tax expense		 For the three-month
period ended
June 30,2021
28,839
$ -
6,158
5,149)
(

29,848
8,941)
(
20,907
$		 For the three-month
period ended
June 30,2020
16,014
$ 7,315
1,140
273)
(
24,196
9,523
33,719
$		 
~39~
For the six-month For the six-month
period ended period ended
June 30,2021 June 30,2020
Current tax:
Current tax on profits for the period $ 53,491
 $ 23,225
Charge on unassigned retained earnings 3,418 7,315
Tax paid outside of the territory of
the Republic of China 6,649 2,742
Prior year income tax over estimation ( 5,582) ( 273)
Total current tax 57,976 33,009
Deferred tax:
Origination and reversal of
temporary differences ( 10,086) 13,948
Income tax expense $ 47,890
 $ 46,957
The income tax charged to other comprehensive income is as follows:
For the three-month For the three-month
period ended period ended
June 30,2021 June 30,2020
Changes in fair value of financial assets at
fair value through other comprehensive
income ($ 141)
 $ 23
Translation differences of foreign operations ( 22,366) ( 32,409)
($ 22,507)
 ($ 32,386)
For the six-month For the six-month
period ended period ended
June 30,2021 June 30,2020
Changes in fair value of financial assets at
fair value through other comprehensive
income $ 255
 ($ 60)
Translation differences of foreign operations ( 28,926) ( 34,993)
($ 28,671)
 ($ 35,053)

(b) The income tax charged to other comprehensive income is as follows:

  • B. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority. 
~40~

(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
Restricted shares to employees
Employees’ bonus
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares		 For the three-monthperiod ended June 30,2021
Weighted average number of
ordinary shares outstanding
Earnings per share
Amount after tax
(share in thousands)
(in dollars)
61,286
$ 265,123
0.23
$ 61,286
$ -
2,766
-
857
-
482
61,286
$ 269,228
0.23
$ For the three-monthperiod ended June 30,2020		 Earnings per share
(in dollars)
0.23
$
0.23
$
Amount after tax
50,354
$ 50,354
$ -
-
50,354
$		 Weighted average number of
ordinary shares outstanding
(share in thousands)
264,296
1,682
718
266,696		 Earnings per share
(in dollars)
0.19
$
0.19
$		 
~41~
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
Employees’ bonus
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares		 For the six-monthperiod endedJune 30,2021 six-monthperiod endedJune 30,2021
Amount after tax
92,724
$ 92,724
$ -
-
-
92,724
$ For the		 Weighted average number of
ordinary shares outstanding
Earnings per share
(share in thousands)
(in dollars)
264,636
0.35
$ 3,305
820
889
269,650
0.34
$ six-monthperiod endedJune 30,2020		 Earnings per share
(in dollars)
0.35
$
0.34
$
Amount after tax
81,818
$ 81,818
$ -
-
81,818
$		 Weighted average number of
ordinary shares outstanding
(share in thousands)
268,186
1,473
1,161
270,820		 Earnings per share
(in dollars)
0.31
$
0.30
$

(30) Transactions with non-controlling interest

  1. In January, 2021, the Group disposed of 25% of shares of its subsidiary—Altek Optical Technology (Kunshan) Co., Ltd. and in February 11.67% of shares of its subsidiary—Altek Medical Holding (Cayman) Co., Ltd. Therefore, the Group reduced its shareholding in subsidiaries in the above transactions. 
~42~
  1. Altek Medical Holding (Cayman) Co., Ltd., a subsidiary company of the group, increased its capital in January 2021. The Group did not subscribe to the capital increase which resulted in a reduction of 6.15% of its shareholding in accordance with its shareholding ratio. The subsidiary company, Altek Optical Technology (Kunshan) Co., Ltd, increased its capital in February 2021. The Group and the non-controlling interests are subscribed in accordance with the shareholding ratio.

The effect of changes in interests on the equity attributable to owners of the parent is shown below:

Consideration received from non-controlling
interest
Non-controlling interests invested in cash
Increase in the carrying amount of non-controlling
interest

Capital surplus
 For the six-month
period ended
June 30,2021
99,094
$ 70,464
181,389)
(
11,831)
($		 For the six-month
period ended
June 30,2020
-
$ -
-
-
$

(31) Supplemental cash flow information

A. Investing activities with partial cash payments ：

Acquisitions of property, plant, and
equipment
Add: Property and equipment and
construction billings payable at
beginning of period
Less: Property and equipment and
construction billings payable at end
of period

Cash paid
Acquisitions of intangible assets
Add: Payables at beginning of period
Cash paid		 For the six-month
period ended
June 30,2021
91,585
$ 4,203
209)
(

95,579
$ For the six-month
period ended
June 30,2021
124,651
$ 278
124,929
$		 For the six-month
period ended
June 30,2020
7,705
$ 898
456)
(
8,147
$ For the six-month
period ended
June 30,2020
23,536
$ -
23,536
$		 
~43~

B. Financing activities with no cash flow effects ：

(32) Changes in liabilities from financing activities
Declaration of cash dividend
$ Short-term
borrowings
Short-term
notes and
bills payable
January 1, 2021
2,330,000
$ 299,798
$ Changes in cash flow from
financing activities
70,000
98,951
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
967
June 30, 2021
2,400,000
$ 399,716
$ Short-term
borrowings
Short-term
notes and
billspayable
January 1, 2020
2,200,000
$ 229,962
$ Changes in cash flow from
financing activities
380,000
230,371)
(
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
409
June 30, 2020
2,580,000
$ -
$		 Changes in liabilities from financing activities
Declaration of cash dividend
$ Short-term
borrowings
Short-term
notes and
bills payable
January 1, 2021
2,330,000
$ 299,798
$ Changes in cash flow from
financing activities
70,000
98,951
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
967
June 30, 2021
2,400,000
$ 399,716
$ Short-term
borrowings
Short-term
notes and
billspayable
January 1, 2020
2,200,000
$ 229,962
$ Changes in cash flow from
financing activities
380,000
230,371)
(
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
409
June 30, 2020
2,580,000
$ -
$		 Changes in liabilities from financing activities
Declaration of cash dividend
$ Short-term
borrowings
Short-term
notes and
bills payable
January 1, 2021
2,330,000
$ 299,798
$ Changes in cash flow from
financing activities
70,000
98,951
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
967
June 30, 2021
2,400,000
$ 399,716
$ Short-term
borrowings
Short-term
notes and
billspayable
January 1, 2020
2,200,000
$ 229,962
$ Changes in cash flow from
financing activities
380,000
230,371)
(
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
409
June 30, 2020
2,580,000
$ -
$		 Changes in liabilities from financing activities
Declaration of cash dividend
$ Short-term
borrowings
Short-term
notes and
bills payable
January 1, 2021
2,330,000
$ 299,798
$ Changes in cash flow from
financing activities
70,000
98,951
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
967
June 30, 2021
2,400,000
$ 399,716
$ Short-term
borrowings
Short-term
notes and
billspayable
January 1, 2020
2,200,000
$ 229,962
$ Changes in cash flow from
financing activities
380,000
230,371)
(
Impact of changes in foreign
exchange rate
-
-
Changes in other non-cash items
-
409
June 30, 2020
2,580,000
$ -
$		 For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
134,249

139,794
$ Long-term
borrowings
(Note)
Guarantee
deposits
received
Lease
liabilities
Total		 For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
134,249

139,794
$ Long-term
borrowings
(Note)
Guarantee
deposits
received
Lease
liabilities
Total		 For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
134,249

139,794
$ Long-term
borrowings
(Note)
Guarantee
deposits
received
Lease
liabilities
Total		 For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
134,249

139,794
$ Long-term
borrowings
(Note)
Guarantee
deposits
received
Lease
liabilities
Total		 For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
134,249

139,794
$ Long-term
borrowings
(Note)
Guarantee
deposits
received
Lease
liabilities
Total		 For the six-month
period ended
For the six-month
period ended
June 30,2021
June 30,2020
134,249

139,794
$ Long-term
borrowings
(Note)
Guarantee
deposits
received
Lease
liabilities
Total
$ $
Long-term
borrowings
(Note)		 Lease
liabilities

January 1, 2021
Changes in cash flow from
financing activities
Impact of changes in foreign
exchange rate
Changes in other non-cash items
June 30, 2021
January 1, 2020
Changes in cash flow from
financing activities
Impact of changes in foreign
exchange rate
Changes in other non-cash items
June 30, 2020
Short-term
borrowings
2,330,000
$ 70,000
-
-
2,400,000
$ Short-term
borrowings		 299,798
$ 98,951
-
967
399,716
$ Short-term
notes and
billspayable		 250,000
$ 250,000)
(
-
-
-
$ Long-term
borrowings		 26,480
$ 4,002)
(
216)
(
-
22,262
$ Guarantee
deposits
received		 104,512
$ 7,178)
(
12)
(
13,994
111,316
$ Lease
liabilities		 3,010,790
$ 92,229)
(
228)
(
14,961
2,933,294
$ Total
2,200,000
$ 380,000

-
-
2,580,000
$		 229,962
$ 230,371)
(
-
409
-
$		 -
$ -
-
-
-
$		 20,326
$ 11,750
586)
(
-
31,490
$		 102,805
$ 4,155)
(
68)
(
415
98,997
$		 2,553,093
$ 157,224
654)
(
824
2,710,487
$

Note: The loan will be due within 1 year and is classified under other current liabilities.

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. 

~44~

(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
June 30,2021
15,901
$ 255
1,722
17,878
$ For the six-month
period ended
June 30,2021
26,204
$ 494
3,540
30,238
$		 For the three-month
period ended
June 30,2020
8,762
$ 232
4,788
13,782
$
For the six-month
period ended
June 30,2020
23,578
$ 426
7,631
31,635
$

8. PLEDGED ASSETS

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

Pledged asset Purpose
Long-term borrowings
Long-term borrowings		 Book value
June 30,2021
December 31,2020
-
$ 734,116
$ -
756,915
-
$ 1,491,031
$		 June 30,2020
Land, buildings and
structures
Investment property		 740,196
$ 760,324
1,500,520
$

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENT

None.

12. OTHERS

(1) Capital 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. 

~45~

(2) Financial instruments

A. Financial instruments by category

ancial instruments
Financial instruments by category
Financial assets
Financial assets measured at fair
value through profit or loss
Financial assets at fair value through other
comprehensive income
Financial assets at amortised cost
Cash and cash equivalents
Current financial assets at amortised cost
Current contract assets
Accounts receivable
Other accounts receivable
Guarantee deposit paid
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings
Short-term notes and bills payable
Accounts payable
Other accounts payable
Long-term borrowings
(including current portion)
Guarantee deposits received
Lease liabilities		 June 30,2021
221,729
$ 122,627
$ 5,745,513
$ 1,423,598
-
1,448,235
71,468
39,653
8,728,467
$ 2,400,000
$ 399,716
1,520,733
562,847
-
22,262
4,905,558
$ 111,316
$		 December31,2020
397,893
$ 43,130
$ 5,373,406
$ 1,842,389
4,414
1,273,383
68,825
34,746
8,597,163
$ 2,330,000
$ 299,798
1,296,475
485,953
250,000
26,480
4,688,706
$ 104,512
$		 June 30,2020
41,667
$
44,789
$
5,450,465
$ 1,766,625
-
910,251
38,575
40,382
8,206,298
$
2,580,000
$ -
713,543
518,773
-
31,490
3,843,806
$
98,997
$

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. 

~46~

  • (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 recognised assets and liabilities.

  • 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: 

~47~

June 30, 2021

Foreign Currency
Amount
(In thousands)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD
68,034
USD
USD:RMB
58,727
USD
Financial liabilities
Monetary items
USD:NTD
65,976
USD
USD:RMB
48,157
USD
Foreign Currency
Amount
(In thousands)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD
60,233
USD
USD:RMB
42,521
USD
Financial liabilities
Monetary items
USD:NTD
50,084
USD
USD:RMB
40,800
USD		 Foreign Currency
Amount
(In thousands)
68,034
USD
58,727
USD
65,976
USD
48,157
USD
Exchange
Rate
28.480
6.5249
28.480
6.5249		 Book Value
(NTD)
1,715,436
$ 1,210,998
1,426,392
$ 1,161,984		 


~48~

June 30, 2020

Foreign Currency
Amount
(In thousands)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD
41,735
USD
USD:RMB
39,640
USD
Financial liabilities
Monetary items
USD:NTD
42,391
USD
USD:RMB
20,012
USD		 Exchange
Rate
29.630
7.0795
29.630
7.0795		 Book Value
(NTD)
1,236,608
$ 1,174,533
1,256,045
$ 592,956		 Effect on
Effect on
Other
Extent of
Profit or
Comprehensive
Variation
(Loss)
Income(Loss)
1%
12,366
$ -
$ 1%
11,745
-
1%
12,560)
($ -
$ 1%
5,930)
(
-
SensitivityAnalysis


  • v. Total exchange gain (loss) including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and six-month periods ended June 30, 2021 and 2020 amounted to $6,265, ($82), $898 and $4,342, respectively.

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 issued by the domestic 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 six-month periods ended June 30, 2021 and 2020 would have increased/decreased by $6,968 and $4,167, 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 $12,263 and $4,479, 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 six-month periods ended June 30, 2021 and 2020, and thus had no significant cash flow interest rate risk. 

~49~

(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 in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

  • iii. The Group measured internal operating procedures, past experience of trading customers, and actual transaction status. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 360 days based on the term, the default has occurred.

  • iv. 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.

  • v. The Group classifies customers’ accounts receivable and contract asset in accordance with customer types. The Group applies the simplified approach using loss provision matrix to estimate expected credit loss under the provision matrix basis.

  • vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. 

~50~

vii. The Group used the forecastability to adjust historical and timely information to access the default possibility of contract assets and accounts receivable. As of June 30, 2021, December 31, 2020, and June 30, 2020, the provision matrix is as follows:

June 30,2021
Expected loss rate
Total book value
Loss allowance
December 31,2020
Expected loss rate
Total book value
Loss allowance
June 30,2020
Expected loss rate
Total book value
Loss allowance		 Up to 90 days
past due		 91~180 days
past due		 181 to 360
days past due		 Up to 361
days		 Total
0.01%~0.03%
1,448,410
$ 175
$ Up to 90 days
past due		 15%~20%
-
$ -
$ 91~180 days
past due		 30%~40%
-
$ -
$ 181 to 360
dayspast due		 100%
-
$ -
$ Up to 361
days
0.02%~0.03%
1,278,063
$ 266
$ Up to 90 days
past due		 15%~20%
-
$ -
$ 91~180 days
past due		 30%~40%
-
$ -
$ 181 to 360
dayspast due		 100%
-
$ -
$ Up to 361
days
0.02%~0.03%
910,439
$ 188
$		 15%~20%
-
$ -
$		 30%~40%
-
$ -
$		 100%
-
$ -
$

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

At January 1
Reversal of impairment loss
At June 30
At January 1
Reversal of impairment loss
Write-offs
Effect of foreign exchange
At June 30
Contract assets
Contract assets
-
$ -
-
-
-
$

ix. The Group’s recorded financial assets at amortized cost include time deposits with contract period over three months, restricted bank deposits and structured deposits of guaranteed 

~51~

floating revenue of financial assets at fair value through profit or loss. Because of the low credit risk, expected credit losses for the period are measured through a loss allowance at an amount equal to the 12-month expected credit losses. There is no significant provision for the losses.

  • (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 headroom as determined by the above-mentioned forecasts.

iii.The Group has the following undrawn borrowing facilities:

0
Fixed rate:
Expiring within one year
Expiring beyond one year		 June 30,2021
2,452,772
$ -
2,452,772
$		 December31,2020
2,814,256
$ 950,000
3,764,256
$		 June 30,2020
3,024,766
$ 1,200,000
4,224,766
$
  • 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.
he table are the contractual undiscounted cash flows.
June 30, 2021
Non-derivative financial liabilities:
Short-term borrowings
Short-term notes and bills payable
Accounts payable
Other payables
Lease liabilities
Guarantee deposits received		 Less than 1year
2,400,000
$ 399,716
1,520,733
562,847
11,620
-		 Over 1year
-
$ -
-
-
117,677
22,262		 
~52~
December 31, 2020
Non-derivative financial liabilities:
Short-term borrowings
Short-term notes and bills payable
Accounts payable
Other payables
Lease liabilities
Long-term borrowings
(including current portion)
Guarantee deposits received
June 30, 2020
Non-derivative financial liabilities:
Short-term borrowings
Accounts payable
Other payables
Lease liabilities
Guarantee deposits received		 Lessthan 1year
2,330,000
$ 299,798
1,296,475
485,953
10,443
250,000
-
Lessthan 1year
2,580,000
$ 713,543
518,773
8,316
-		 Over 1year
-
$ -
-
-
111,661
-
26,480
Over 1year
-
$ -
-
108,844
31,490

(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.

  • 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, structured deposits and investment property are included in Level 3.

  • B. Fair value information of investment property at cost is provided in Note 6(9).

  • C. Financial instruments was not measured at fair value, including the carrying amounts of cash and cash equivalents, financial assets at amortized cost, accounts receivable, other receivables, deposits paid, long-term borrowings, short-term borrowings, short-term bills payable, notes payable, accounts payable, other payables, deposit received and lease liabilities are approximate to their fair values. 

~53~

  • D. 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:

June 30, 2021 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Structured deposits $ -
 $ -
 $ 152,045
 $ 152,045
Unlisted stocks - - 69,684 69,684
Financial assets at fair
value through other
comprehensive income
Unlisted stocks - - 122,627 122,627
$ -
 $ -
 $ 344,356
 $ 344,356
December 31, 2020 Level 1 Level 2 Level3 Total
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Structured deposits $ -
 $ -
 $ 349,664
 $ 349,664
Unlisted stocks - - 48,229 48,229
Financial assets at fair
value through other
comprehensive income
Unlisted stocks - - 43,130 43,130
$ -
 $ -
 $ 441,023
 $ 441,023
 
~54~
June 30, 2020
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
-
$ -
-
$		 Level3
41,667
$ 44,789
86,456
$		 Total
41,667
$ 44,789
86,456
$

  • (b) The methods and assumptions the Group used to measure fair value are as follows:

    • i. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. 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.

  • ii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.

  • E. For the six-month periods ended June 30, 2021 and 2020, there was no transfer between Level 1 and Level 2.

  • F. The following chart is the movement of Level 3 for the six-month periods ended June 30, 2021 and 2020:

2021 2020
At January 1 $ 441,023
 $ 90,800
Purchases in the period 238,444 -
Gains recognised in profit or loss 27,624 1,511
Gains (losses) recognised in other comprehensive 428 ( 302)
Sold in the period ( 356,009)
 -
Proceeds from capital reduction in the period ( 3,056)
 ( 4,364)
Effect of exchange rate changes ( 4,098) ( 1,189)
At June 30 $ 344,356
 $ 86,456
  • G. For the six-month periods ended June 30, 2021 and 2020, there was no transfer of Level 3. 
~55~

  • H. 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.

  • I. 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:

Financial assets at
fair value through
profit or loss
Structured deposit
Unlisted shares
Financial assets at
fair value through other
comprehensive income
Unlisted shares		 Fair value at
June 30,2021		 Valuation
technique		 Significant
unobservable input		 Relationship of
inputs to
fair value
$ 152,045
69,684
122,627		 Depends on
individual contract
Market
comparable
companies
Net asset value		 Depends on
individual contract
Price to
earnings ratio
multiple, price
to book ratio
multiple,discount
for lack of
marketability,
control premium
Not applicable		 Depends on
individual contract
The higher the
multiple and
control
premium, the
higher the fair
value
Not applicable		 
~56~
Financial assets at
fair value through
profit or loss
Structured deposit
Unlisted shares
Financial assets at
fair value through other
comprehensive income
Unlisted shares
Financial assets at
fair value through
profit or loss
Unlisted shares
Financial assets at
fair value through other
comprehensive income
Unlisted shares		 Fair value at
December 31,
2020
Valuation
technique
349,664
$ Depends on
individual contract
48,229
Market
comparable
companies
43,130
Net asset value
Fair value at
June 30,
2020
Valuation
technique
41,667
$ Market
comparable
companies
44,789
Net asset value		 Fair value at
December 31,
2020
Valuation
technique
349,664
$ Depends on
individual contract
48,229
Market
comparable
companies
43,130
Net asset value
Fair value at
June 30,
2020
Valuation
technique
41,667
$ Market
comparable
companies
44,789
Net asset value		 Valuation
technique		 Significant
unobservable input		 Relationship of
inputs to
fair value
Depends on
individual contract
Market
comparable
companies
Net asset value
Valuation
technique
41,667
$ 44,789		 Market
comparable
companies
Net asset value		 Price to
earnings ratio
multiple, price
to book ratio
multiple,discount
for lack of
marketability,
control premium
Not applicable		 
~57~

- ’ (4) The impact of the COVID 19 pandemic to the Group s operation

In response to the third-level epidemic prevention alert of COVID-19 implemented in May, 2021, the Group has adjusted the work style of employees, strengthened disinfection and control of personnel entry and exit measures for operating entities in Taiwan. The Group assessed that the COVID-19 pandemic had no significant impact to its overall operating activities and financial statements as of June 30, 2021.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

  • A. Loans to others: Please refer to table 1.

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

  • C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) : Please refer to table 2.

  • 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 paidin capital or more: Please refer to table 3.

  • H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 4.

  • 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 5.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 6.

(3) Information on investments in Mainland China

  • A. The related information of investments in Mainland China: Please refer to table 7.

  • 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 table 3 ~ table 5.

(4) Major shareholders information

Please refer to table 8. 

~58~

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 Group evaluates performance based on profit or loss by using sales revenue and operation profit measurements. The accounting policies of the Group's operating segments are the same as the significant accounting policies summarized in Note 4.

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

The Group has a single reportable segment. The revenue from external customers, the related gain or loss, and the assets correspond with the consolidated revenue, consolidated operating income, and consolidated assets.

(4) Reconciliation for segment income (loss)

The amounts provided to the Chief Operating Decision-Maker with respect to department assets, liabilities and profit are measured in a manner consistent with that of the financial statements. 

~59~

Altek Corporation and subsidiaries Loans to other For the six-month period ended June 30, 2021

No.
Table 1		 Creditor Borrower General
ledger
account		 Is a
related
party		 Maximum
outstanding
balance during
six-month
period the
June 30,
2021		 Balance at
June 30,
2021		 Actual amount
drawn down		 Interest
rate		 Nature of
loan		 Amount of
transactions
with the
borrower		 Reason
term
financing		 Allowance
for
doubtful
accounts		 Collateral Collateral Limit on loans
Ceiling on
granted to
total loans
a single party
granted
（Note)
(Note)
1,088,169
$ 1,088,169
$ Expressed in thousands of NTD
(Except as otherwise indicated)		 Limit on loans
Ceiling on
granted to
total loans
a single party
granted
（Note)
(Note)
1,088,169
$ 1,088,169
$ Expressed in thousands of NTD
(Except as otherwise indicated)
Item Value
1 Altek Semiconductor
(Cayman) Co., Ltd.		 Altek
Semiconductor
Corporation		 Other
receivables-
related
party		 Yes 142,675
$		 139,300
$		 -
$		 0% Reason
for
short-term
financing		 -
$		 Operational
need		 -
$		 Promissory
note		 139,300
$		 1,088,169
$		 1,088,169
$

Note 1: The ”Procedure for Provision of Loans” policy for loans granted by Altek Semiconductor (Cayman) Co.,Ltd. is as follows: the ceiling on total loans is 100% of the net assets value of lender. For the short-term financing, the ceiling on loans is 40% of the net assets value of lender.

Note 2: If the amount of NTD in this Note relates to foreign currencies, it is converted to NTD at the exchange rate at the end of the financial reporting period.

Table 1

Altek Corporation and subsidiaries

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

June 30, 2021

Table 2

Expressed in thousands of NTD

(Except as otherwise indicated)

Securitiesheld by Marketable securities Relationship with the
securitiesissuer		 General
ledgeraccount		 As ofJune 30,2021
Numberofshares Bookvalue Ownership (%) Fairvalue
Altek Corporation
"
Altek (Kunshan) Co., Ltd.
Altek EMS (Kunshan) Co.,
Ltd.		 Gianta Co., Ltd. - Common stock
Hua-chuang Automobile Information
Technical Center Co., Ltd. - Common
stock
CPEC Huachuang Private Equity
(Kunshan) Enterprise (Limited
Partnership)
Aimore Acoustics Incorporation		 Director
None
None
Director		 Financial assets at fair value
through profit or loss
- non-current
Financial assets measured at
fair value through other
comprehensive income
- non-current
Financial assets measured at
fair value through other
comprehensive income
- non-current
Financial assets measured at
fair value through other
comprehensive income
- non-current		 762,876
2
N/A
N/A		 69,684
$ -
36,374
86,253		 14.55%
0.00%
(Note 1)
(Note 2)		 69,684
$ -
36,374
86,253

Note 1: 1% of CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership)’s capital contribution. Note 2: 12.5% of Aimore Acoustics Incorporations’s capital contribution.

Table 2

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 six-month period ended June 30, 2021

Table 3
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)
Expressed in thousands of NTD
(Except as otherwise indicated)		 Notes/accounts
receivable(payable)
Expressed in thousands of NTD
(Except as otherwise indicated)
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
Trading Co., Ltd.
Altek Biotechnology
Corporation
Altek Biotechnology Holding
(Cayman) Co., Ltd. Taiwan
Branch
Altek (Kunshan) Co., Ltd.		 Altek International
Trading Co., Ltd.
Altek (Kunshan) Co., Ltd.
Altek International
Trading Co., Ltd.
"
"		 Parent company
The same ultimate
parent company
"
"
"		 Purchases
Purchases
Purchases
Purchases
Purchases		 1,958,477
$ 3,395,408
916,446
295,350
219,452		 91%
100%
100%
100%
7%		 Net 120 days
Net 75 days
"
"
"		 Approximately
the same price
with third
parties
"
"
"
"		 Note
"
"
"
"		 1,265,413)
($ 1,614,783)
(
421,461)
(
156,686)
(
-		 96%
100%
99%
99%
0%

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

Table 3

Altek Corporation and subsidiaries

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

June 30, 2021

June 30, 2021
Table 4
Creditor		 Counterparty Relationship
with the counterparty		 Balance as atJune30,2021 Turnover rate Overdue receivables 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
Trading Co., Ltd.
"
"
Altek (Kunshan) Co., Ltd.		 Altek Corporation
Altek Biotechnology
Corporation
Altek Biotechnology Holding
(Cayman) Co., Ltd. Taiwan
Branch
Altek International
Trading Co., Ltd.		 Parent company
The same ultimate
parent company
"
"		 1,265,413
$ 421,461
156,686
1,614,783		 4.13
4.47
4.60
5.12		 -
$ -
-
-		 N/A
N/A
N/A
N/A		 361,464
$ 127,980
-
495,863		 -
$ -
-
-

Table 4

Altek Corporation and subsidiaries

Table 5

Significant inter-company transactions during the reporting periods

For the six-month period ended June 30, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

Companyname Counterparty Relationship
(Note1)		 Transaction
General ledgeraccount Amount Transactionterms Percentage of consolidated total operating
revenues ortotalassets (Note2)
Altek Corporation
"
Altek International Trading Co., Ltd.
"
Altek Semiconductor Corporation
"
"
Altek Biotechnology Corporation
"
Altek Biotechnology Holding (Cayman) Co.,
Ltd. Taiwan Branch
"
Altek (Kunshan) Co., Ltd.
Altek Optical Technology (Kunshan)
Co., Ltd
"		 Altek International Trading Co., Ltd.
"
Altek (Kunshan) Co., Ltd.
"
Altek International Trading Co., Ltd.
"
"
"
"
"
"
"
Altek (Kunshan) Co., Ltd.
"		 (1)
(1)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)		 Purchases
Accounts payable
Purchases
Accounts payable
Sales
Purchases
Accounts payable
Purchases
Accounts payable
Purchases
Accounts payable
Purchases
Purchases
Accounts payable		 1,958,477
$ 1,265,413
3,395,408
1,614,783
7,665
7,812
8,561
916,446
421,461
295,350
156,686
219,452
12,566
13,862		 Net 120 days
"
Net 75 days
"
"
Net 120 days
"
Net 75 days
"
"
"
"
"
"		 46%
8%
79%
11%
0%
0%
0%
21%
3%
7%
1%
5%
0%
0%

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 5

Altek Corporation and subsidiaries

Information on investees

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

For the six-month period ended June 30, 2021

Investor Investee Location Main business activities Initial investment amount Initial investment amount Shares held as at June 30,2021 held as at June 30,2021 Net profit (loss) of
the investee
for the six-month period
ended June 30,2021		 Investment income(loss)
recognised by the Company
for the six-month period
ended June 30,2021		 Footnote
Balance
as at June 30,
2021		 Balance
as at December 31,
2020		 Number of shares Ownership (%) Book value
Altek Corporation
"
"
"
Altek International
Investment Co., Ltd.
"
"
"
Altek International
Holding (BVI) Co, Ltd.
Altek Semiconductor
(Cayman) Co., Ltd.
Altek Medical Holding
(Cayman) Co., Ltd.
Altek Investment
Corporation		 Altek International
Investment Co., Ltd.
Altek Japan Corporation
Altek International Holding
(BVI) Co, Ltd.
Altek Investment Corporation
Altek Lab Inc.
Altek Semiconductor
(Cayman) Co., Ltd.
Altek Optical Technology
(Cayman) Co., Ltd.
Altek International
Trading Co., Ltd.
Altek Medical Holding
(Cayman) Co. ,Ltd.
Altek Semiconductor
Corporation
Altek Biotechnology
Corporation
Ptek Corporation		 British Virgin
Islands
Japan
British Virgin
Islands
Republic of China
U.S.A.
Cayman Islands
Cayman Islands
Republic of
Seychelles
Cayman Islands
Republic of China
Republic of China
Republic of China		 Investment
Sale of optical optical instruments
Investment
Investment
Design service
Investment
Investment
Intercompany transactions
Investment and general business
operations
Research design and sales of ASIC
Research and development,
manufacture and sales of
medical electronic equipments
Product development and design		 2,882,512
$ 2,869
415,376
100,000
102,517
171,262
369,034
278,600
311,360
350,000
115,376
3,000		 2,882,512
$ 2,869
415,376
100,000
102,517
171,262
312,032
278,600
415,376
350,000
415,376
-		 87,769,559
1,000
12,865,921
10,000,000
11,311,875
20,000,000
13,246,000
10,000,000
45,063,684
35,000,000
10,100,000
300,000		 100
100
100
100
100
50
100
100
82.18
100
100
100		 8,347,616
$ 10,533
968,407
99,877
58,238
547,181
77,525
240,023
621,008
256,474
478,580
2,999		 106,790
$ 303
92,373
44)
(
424
676
14,681
8,155)
(
106,724
4,948
21,600
1)
(		 102,795
$ 303
92,373
44)
(
424
231
14,681
8,155)
(
92,353
2,474
17,815
1)
(		 Note 1
Note 2
Note 2

Note 1: The difference between the profit or loss of the investee for the current period and the investment profit or loss recognized in the current period is the unrealized profit and loss adjustments for counterparty transactions between subsidiaries. Note 2: Altek Biotechnology Holding (Cayman) Co., Ltd. changed its name to Altek Medical Holding (Cayman) Co., Ltd. Since June 8, 2021.

Table 6

Altek Corporation and subsidiaries

Information on investments in Mainland China

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

For the six-month periods ended June 30, 2021

Investee in Mainland
China		 Mainbusiness activities Paid-incapital Investment
method
（Note1）		 Accumulated amount
of remittance from
Taiwan to Mainland
China as of
January1,2021		 Amount remitted from Taiwan to
Mainland China/Amount
remitted back to Taiwan for
the six-month period ended
June 30,2021		 Accumulated amount
of remittance from
Taiwan toMainland
China as of
June 30,2021		 Net profit (loss) of investee
for the six-month period
ended June 30,2021		 Ownership held by
the Company
(direct or indirect)		 Investment income
(loss) recognised
by the Company for
the six-month
period ended
June 30, 2021
(Note4)		 Accumulated amount
of investment income
remitted back to
Taiwan as of
June 30,2021
Book value of
investments in
Mainland China as of
June 30,2021
Remitted to
Mainland China
Remitted back to
Taiwan
Altek (Kunshan) Co.,
Ltd. (Note 2)
Altek EMS (Kunshan)
Co., Ltd. (Note 3)
Altek Trading
(Shanghai) Limited
Altek Precision
(Kunshan) Co., Ltd.
Altek Optical
Technology
(Kunshan)
Co., Ltd.
Altek Semiconductor
(Shanghai) Co., Ltd.		 Manufacture and sale of digital
still cameras and its accessories
Manufacture and sale of related
engineering services
Wholesale, import and export of
digital cameras, digital video
cameras and their
associated accessories
Design, manufacture and sales of
digital camera parts
Manufacture and sales of photo
electron device, optical
instrument, camera and
equipment
Research design and sales of
imaging technologies,
electronic software and
hardware		 1,381,856
$ 139,300
236,810
384,468
390,040
41,790		 2
2
2
2
2
2		 1,253,700
$ 253,052
236,810
384,468
312,032
-		 -
$ -
$ -
-
-
-
-
-
58,506
-
-
-		 1,253,700
$ 253,052
236,810
384,468
370,538
-		 94,303
$ 7,553
3,026
998
19,576
4,600)
(		 100
100
100
100
75
50		 94,303
$ 7,553
3,026
998
14,682
2,300)
(		 4,299,841
$ -
$ 782,834
-
308,539
-
150,313
-
77,522
-
111,392
-

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).

Note 4:The basic explanation of investment profit and loss recognition is as follows:

(1)Altek (Kunshan) Co., Ltd. are audited by the R.O.C. parent company’s independent auditors.

(2)Other companies are self-prepared financial statements.

Companyname Accumulated amount of remittance from Taiwan to
MainlandChina as ofJune30,2021		 Investment amount approved by the Investment
Commission of the Ministryof Economic Affairs(MOEA)		 Ceiling on investments in Mainland China imposed
bythe InvestmentCommission of MOEA
Altek Corporation $2,498,568 $2,801,375 $5,014,375

Table 7

Altek Corporation and subsidiaries Information of major shareholders June 30, 2021

Table 8

Name of major shareholders Shares Shares
Number of shares held Holding percentage
Yitsang International Co., Ltd. 14,300,100 5.11%

Table 8

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