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LD — AGM Information 2023
Jun 15, 2023
52348_rns_2023-06-15_ccad8c9b-0c94-4332-8123-090cea8e89ce.pdf
AGM Information
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Leadtrend Technology Corporation 2023 Annual Shareholder’s Meeting Minutes
Time and Date of Meeting ： June 13, 2023(Tuesday) at 9:00 am
Location of Meeting: 2F No. 3, Taiyuan 1st Street, Zhubei City,Hsinchu County (Banquet hall) Meeting type : Physical shareholders’ meeting
Total outstanding shares: 56,830,328 shares((22,500 treasury shares are deducted according to law)
Total shares represented by shareholders present in person or by proxy: 32,913,236 shares (among them, 7,648,775 shares voted via electronic transmission and E-Meeting) Percentage of shares held by shareholders present in person or by proxy: 57.91%
Directors present: Power Investments Limited representative name: Chairman, Yu-kun, Kao 、 、 Director, Ming-Nan, Chuang Director,Chuei-Hua, Chiou, Jian Guo, Yang 、 (The Convenor of The Audit Committee) Independent Director, DingRen, Liu, 5 directors present and more than half of total 7 directors.
Attendance: Tsai mei-chen ( Deloitte & Touche)
Jakob Huang (Chen & Lin Attorneys -At- Law)
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Chairman: Yu-kun, Kao Recorder: Ya-ching , Huang
The aggregate shareholding of the shareholders present in person or by proxy constituted a quorum. The Chairman called the meeting to order.
A.Chairman Address (omitted)
B. Report Items ：
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(1) Annual Business Report of the 2022 (please see Attachment 1)
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(2) Audit Report of Audit Committee of the 2022 (please see Attachment 2)
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(3) The report of distribution of remunerations to employees and directors for 2022 (please reference Meeting Hankbook)
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(4) The report of both the cash dividends with respect to earning distribution and the cash distributed from capital surplus for 2022(please reference Meeting Hankbook)
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C. Ratification Items ：
Motion 1
Subject: The 2022 Business Report and financial statements are presented for recognition. [Proposed by Board of Directors]
Explanation:
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(1) The financial statements of 2022 have been audited by Tsai Mei-Chen and Chung Ming-Yuan, CPAs of Deloitte & Touche, who have also issued an auditors’ report containing their unqualified opinion.
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(2) For the 2022 Business Report, Independent Auditor’s Report and financial statements, please see Attachment 1 and Attachment 3.
Resolution: Approved, the voting result of this proposal had reached the standard by the law Voting Results:
Share represented at the time of voting: 32,913,236 (7,648,775)
| Voting Results* | % of the total represented sharepresent |
|---|---|
| Votes in favor | 98.65% |
| Votes against | 0.02% |
| Votes invalid/ abstained | 1.31% |
- including votes casted electronically and e-meeting (numbers in brackets)
Motion 2
Subject: The distribution of earnings for 2022 is presented for recognition.
[Proposed by Board of Directors]
Explanation: For the 2022 Earnings Distribution Statement, please see Attachment 4. Resolution: Approved, the voting result of this proposal had reached the standard by the law
Voting Results:
Share represented at the time of voting: 32,913,236 (7,648,775)
| Voting Results* | % of the total represented sharepresent |
|---|---|
| Votes in favor | 98.66% |
| Votes against | 0.01% |
| Votes invalid/ abstained | 1.31% |
- including votes casted electronically and e-meeting (numbers in brackets)
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D.Discussion Items
Motion 1
Subject: The new restricted employee shares to be issued for 2023 are presented for discussion.
[Proposed by Board of Directors]
Explanation:
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(1) We intend to issue restricted stock awards in accordance with Article 267 of the Company Act and applicable provisions of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers.
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(2) With respect to the restricted stock awards to be issued this time, the total amount and the conditions of the issue are stated as follows:
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A.Total amount for the issue: The total amount is NT$4,200,000 and a total of 420,000 shares are issued, with par value of NT$10 per share. The board of directors is authorized to issue them all or separately in accordance with applicable laws within a year from the date of resolution made at the shareholders’ meeting.
B. Conditions of the issue:
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(i)Expected issue price:The price for issuance is NT$0 per share.
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(ii)Vesting Conditions:
After new restricted stock awards are allocated to an employee, the employee must obtain an assessment grade of “Compliance” or above (i.e. a scale score ≧ 5.8) for the latest Individual Performance prior to the vesting date and is still working at Leadtrend upon expiration of any of the following vesting periods. Then the employee will receive such new restricted stock awards based on the ratio of vested portion for the concerned vesting period.
ratio of vested portion for the concerned vesting period. |
|
|---|---|
| Vesting Period From the vesting date to Oct. 11 of the next year From the vesting date to Apr. 11 of the next 2ndyear From the vesting date to Oct. 11 of the next 2ndyear From the vesting date to Apr. 11 of the next 3rdyear From the vesting date to Oct. 11 of the next 3rdyear From the vesting date to Apr. 11 of the next 4thyear |
Ratio of Vested Portion |
| 1/6 1/6 1/6 1/6 1/6 1/6 |
(iii)The restricted stock awards issued to employees this time are common shares.
- (iv)Measures to be taken when an employee fails to satisfy vesting conditions, or upon inheritance:
When an employee fails to satisfy vesting conditions, we will take back and cancel, without compensation payment and in accordance with the law, the restricted stock awards given to the employee. In case of occurrence of inheritance, the inheritance shall be dealt with in accordance with the Regulations for Issue of Restricted Stock Awards.
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C. Employees’ Qualifications and Conditions, and Number of Shares Allocated or Subscribed:
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(i)Full-time employees of Leadtrend and its subordinate companies who have reported for duty already as of the date on which new restricted stock awards are vested are eligible. The subordinate companies stated herein are defined in Article 369-2 of the Company Act.
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(ii)The actual employees in whom stock awards are vested and the quantity of the new restricted stock awards obtainable, which are determined based on years of service, rank, work performance, overall contribution, special achievement and other conditions to be taken into account for management, shall be approved by Chairman and then reported to the board of directors for its consent. However, if any of the employees also serves as a director and/or manager, the consent of the remuneration committee shall be obtained first. Non-managerial employees shall be reported to the audit committee.
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D. Necessary reasons for issuance of restricted stock awards:
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To attract, retain and motivate talents and enhance employees’ centripetal force to develop Leadtread’s business consistently and stably and create the maximum benefits for Leadtread and its shareholders.
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E. Possible expensable amount, dilution of Leadtread’s earnings per share, and other impacts on shareholders’ equity
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(i)Possible expensable amount: No more than 420,000 shares for restricted stock awards are issued this time, and a holder is not permitted to assign before satisfying vesting conditions. After the issuance, the possible expensable amount is estimated to be NT$25,620 thousand. The expensable amount to be amortized every year is estimated to be NT$2,834 thousand for 2023, NT$12,713 thousand for 2024, NT$6,872 thousand for 2025, NT$2,845 thousand for 2026, and NT$356 thousand for 2027. (Because of gratuitous issuance, the current price is estimated temporarily based on NT$61, the closing price on Mar. 15, 2023.)
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(ii)Dilution of Leadtread’s earnings per share, and other impacts on shareholders’ equity:
As for the impact of the vesting conditions and the amount amortized annually for the temporarily estimated expensable amount on earnings per share, the earnings per share for 2023, 2024, 2025, 2026 and 2027 will be probably reduced by NT$0.03, NT$0.16, NT$0.08, NT$0.03 and NT$0.01 respectively (which are calculated based on 56,883,828 shares, issued on Mar. 15, 2023, plus restricted stock awards). The dilution of earnings per share is limited, so there is no significant impact on shareholders’ equity.
- (3) The Regulations for Issue of Restricted Stock Awards for 2023 are established. Please see Attachment 5. After the motion is approved, if the Regulations need to be revised due to changes in laws or upon request by the competent authority, Chairman is fully authorized to deal with all relevant matters.
Resolution: Approved, the voting result of this proposal had reached the standard by the law
Voting Results:
Share represented at the time of voting: 32,913,236 (7,648,775)
| Voting Results* | % of the total represented sharepresent |
|---|---|
| Votes in favor | 98.45% |
| Votes against | 0.22% |
| Votes invalid/ abstained | 1.31% |
- including votes casted electronically and e-meeting (numbers in brackets)
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Motion 2
Subject: 2022 capital increase by retained earning.
[Proposed by Board of Directors]
Explanation:
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(1) We intend to withdraw NT$17,065,150 from the earnings distributable for 2022 and increase capital by issuing 1,706,515 new shares, with par value of NT$10 per share.
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(2) The new shares issued this time for capital increase based on the shareholding of each shareholder recorded in the register of shareholders as of the record date with respect to the share allocation (capital increase). Every shareholder is entitled to 30 new shares for every 1,000 shares.
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(3) In case of allocation of any fractional shares less than a share, a shareholder may request the stock agency of Leadtrend, within 5 days from the date of suspension of stock transfer upon ex-rights, to put the fractional shares held together. For all transaction shares held still less than a share, an amount calculated at par value (rounded to the whole number) is distributed in cash in accordance with Article 240 of the Company Act. Chairman is authorized to request specific persons to subscribe fractional shares at par value. Monies of fractional shares held by the shareholders participating in book-entry allocation of shares will be the funds to pay expenses of the book-entry operation.
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(4) Rights and obligations for the new shares issued for capital increase this time are the same as those for the common shares issued originally.
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(5) After the new shares to be issued for capital increase have been approved at the shareholders’ meeting and reported to and approved by the competent authority, the board of director is authorized to determine record date for share allocation (capital increase) and relevant matters. The board of directors is authorized to handle relevant matters if the number of outstanding shares is so impacted that the share allocation ratio changes due to any changes in legal requirements or any adjustments made by the competent authority, or any shares purchased back or cancelled, debentures converted or new shares issued by Leadtrend or other reasons that may influence changes in shares.
Resolution: Approved, the voting result of this proposal had reached the standard by the law
Voting Results:
Share represented at the time of voting: 32,913,236 (7,648,775)
| Voting Results* | % of the total represented sharepresent |
|---|---|
| Votes in favor | 98.67% |
| Votes against | 0.01% |
| Votes invalid/ abstained | 1.31% |
- including votes casted electronically and e-meeting (numbers in brackets)
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Motion 3
Subject: The revised provisions the Corporation Bylaws of Leadtread are presented for discussion.
[Proposed by Board of Directors]
Explanation:
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(1) Certain provisions of the Articles of Incorporation are revised for the need of business operation of Leadtread.
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(2) For the comparison table for amendments to the Articles of Incorporation of Leadtread, please see Attachment 6.
Resolution: Approved, the voting result of this proposal had reached the standard by the law
Voting Results:
Share represented at the time of voting: 32,913,236 (7,648,775)
| Voting Results* | % of the total represented sharepresent |
|---|---|
| Votes in favor | 98.65% |
| Votes against | 0.02% |
| Votes invalid/ abstained | 1.31% |
- including votes casted electronically and e-meeting (numbers in brackets)
E. Extraordinary Motions: NA
F. Meeting close (at 09:27 am on 6/13/2023)
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Attachment III
INDEPENDENT AUDITORS EPORT
To LEADTREND TECHNOLOGY CO. LTD.,
Opinion
We have finished the audit of the consolidated balance sheets respectively as of December 31, 2022 and as of December 31, 2021, and the consolidated composite income statement, consolidated statement of changes in equity, consolidated statement of cash flows and notes to the consolidated financial statements, including summary of significant accounting policies, for the periods from January 1 to December 31, 2022 and from January 1 to December 31, 2021, with respect to LEADTREND TECHNOLOGY CO. LTD. ("the Company") and its subsidiaries (hereinafter collectively referred to as "Affiliated Companies").
In our opinion, the aforesaid consolidated financial statements have been prepared in all material respects in accordance with the financial reporting standards of the securities issuers and International Financial Reporting Standards, International Accounting Standards, interpretations and explanatory announcements approved and issued by the Financial Supervisory Commission, and are sufficient to express the consolidated financial position of the affiliated companies as of December 31, 2022 and as of December 31, 2021 respectively, and the consolidated financial performance and consolidated cash flows during the period from January 1 through December 31, 2022 and the period from January 1 through December 31, 2021 respectively.
Basis for Opinion
The audit is carried out in accordance with the Rules for Audit of Certified Financial Statements and Auditing Standards. Our responsibility under these standards is further explained in the section "Responsibility" of the report. The staff of our CPA firm who are subject to the standards of independence have maintained their independence from Affiliated Companies in accordance with the code of professional ethics for accountants, and performed other responsibilities under the code. We believe that we have obtained sufficient and appropriate evidence on which the audit opinion is given properly.
Key Audit Matters
Key audited matters refer to the most important matters audited in individual financial statements of Affiliated Companies during 2022 based on our professional knowledge. Such matters have been taken into account in the audit of the consolidated financial statements as a whole and in the formation of the audit opinion, and we express no opinion on such matters separately.
The audited matters in consolidated financial statements of Affiliated Companies during 2022 are described below:
Recognition of sales revenue
- The sales revenue of Affiliated Companies is in large amount as detailed in Note 19. The sales revenue for Affiliated Companies are mainly from sales of its power management chips. Such revenues are recognized through such process - the production management staff prepare goods based on the customer's shipping order provided by the business section, and inform the QA staff to inspect the goods when they are prepared, and then ship
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the goods after the inspection is approved and the shipping order and finish products delivery not are signed, affixed with seal, and reviewed and approved by the supervisor, and update the inventory details in the operating system at the same time. The accountant recognizes sales revenue based on the shipping receipt signed by the customer or carrier.
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Because the aforementioned transaction involves manual control, there is a risk that any revenue may be recognized by error without a shipment receipt signed by the customer or freight forwarder.
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We consider the revenue recognition policy of Affiliated Companies, evaluate the appropriateness of revenue recognition, including understanding and testing the effectiveness of internal control on approved orders and shipment procedures, and sampling and checking relevant vouchers of sales receipts and cash collection or after-date collection to verify the existence and actual occurrence of the sale transaction, and check whether there are any abnormal situations in the purchaser and the payer.
Evaluation of inventory
Refer to Note 9 of consolidated financial statements for details. The inventory balance of Affiliated Companies accounts for 43% of the total assets as of December 31, 2022 and is in large amount, and the evaluation of the inventory allowance is a significant accounting estimate. In addition, because Affiliated Companies are engaged in the design and development and subsequent sales of integrated circuits after outsourcing production, and this type of products is subject to fast upgrading and updating, and in a highly competitive industry, there may be the risk of inventory price decline and stagnation loss.
We have performed the following major audit procedures in respect of the specific level described as one of the most important matters in this year's audit.
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Understand and evaluate the reasonableness of inventory appraisal policies adopted by management.
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Obtain the assessment data on the inventory cost and net realized value, whichever is the lower, conduct sampling to check the data on the latest selling price of inventory to verify the net realized value of inventory and compare the net realized value with the book cost of inventory, so as to test the correctness of the inventory loss provision amount; Obtain the inventory age statement, check the inventory entry information to test whether the inventory age classification, inventory quantity and amount are consistent, so as to verify the correctness and completeness of the inventory age statement, and then audit the correctness of withdrawn amount of the inventory stagnation loss based on the inventory evaluation policy.
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Perform a retrospective inventory test to examine the inventory obsolescence situation compared with the stagnation loss provision policy to check whether proper provisions have been made against the stagnation inventory loss in the current period.
Other matters
The Company has prepared the individual financial statements as of 2022 and 2021 respectively, and we have issued audit report with clear opinion for filing and for reference.
Responsibility of Management and Governance for Consolidated Financial Statements
The responsibility of the management is to prepare financial statements with fair representation in accordance with the financial reporting standards of the securities issuers and
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International Financial Reporting Standards, International Accounting Standards, interpretations and explanatory announcements approved and issued by the Financial Supervisory Commission, and maintain necessary internal control related to preparation of financial statements, to ensure that the financial statements are free from material misrepresentation due to fraud or error.
In the preparation of consolidated financial statements, the responsibility of the management also includes assessment of Affiliated Companies' ability to continue as a going concern, disclosure of relevant issues, and adoption of going-concern accounting basis, unless the management intends to liquidate or shut down Affiliated Companies, or there is no practical solution except liquidation or shutdown.
The governance units (including the audit committee) of Affiliated Companies shall be responsible for supervising the financial reporting process.
Responsibility of Accountant to Audit Consolidated Financial Statements
The purpose of accountant's audit of consolidated financial statements is to obtain reasonable assurance that the consolidated financial statements as a whole are free of material misrepresentations due to fraud or error, and to issue an audit report. Reasonable assurance means a high degree of confidence, provided that an audit carried out in accordance with auditing standards cannot guarantee that any material misrepresentation in consolidated financial statements will be detected. Misrepresentation may result from fraud or error. If a misrepresentation of individual amounts or sums can reasonably be expected to influence economic decisions made by users of the consolidated financial statements, it will be deemed as material misstatement.
We will use professional judgment and professional doubt when checking in accordance with auditing standards. We have also performed the following:
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Identify and assess risks of material misrepresentation resulting from fraud or error in the financial statements; Design and implement appropriate actions against the assessed risks; Obtain sufficient and appropriate evidence to serve as the basis for the opinion. Since fraud may involve collusion, forgery, intentional omission, misrepresentation, or breach of internal control, the risk of undetected material misrepresentation due to fraud is higher than that due to error.
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Obtain necessary understanding of the internal controls relevant to the audit in order to design the appropriate audit procedures under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of Affiliated Companies.
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Assess the appropriateness of accounting policies adopted by the management and the reasonableness of accounting estimates and disclosures.
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Based on the evidence obtained, draw a conclusion on whether there is material uncertainty about the appropriateness of the management's use of a going-concern accounting basis and about events or circumstances that may cast significant doubt on the ability of Affiliated Companies to continue as a going concern. If the accountant considers such events or circumstances to be materially uncertain, he/she shall, in the audit report, alert the users of the consolidated financial statements to relevant disclosures in the consolidated financial statements or amend the audit opinion if such disclosures are inappropriate. Our conclusion is based on the evidence obtained as of the date of this audit report. However,
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future events or circumstances may result in Affiliated Companies' disability to continue as a going concern.
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Assess the overall presentation, structure and content of the consolidated financial statements, including relevant notes, and whether the consolidated financial statements fairly and appropriately present relevant transactions and events.
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Obtain sufficient and appropriate verification evidence of the financial information on the Group's affiliates to express an opinion on the consolidated financial statements. We are responsible for providing instructions on, supervising and executing the Group's audit case and giving audit opinions.
Communication between accountant and the governance includes planned scope and scheduling of the audit, as well as major audit findings (including significant deficiencies in internal control identified during the audit).
We also provide the governance with the statement that the staff of our firm subject to the independence standard have complied with the professional ethics code of accountants regarding independence, and communicated with the governance about all relationships and other matters that may be considered to affect the independence of the accountants (including relevant protective measures).
Among the matters discussed with the management, we decide the key matters for the audit of the 2022 consolidated financial statements of Affiliated Companies. We disclose such matters in the audit report, unless these matters are not permitted to be disclosed publicly under relevant laws, or in very rare circumstances, we decide not to communicate such matters in the audit report because it is reasonably expected that the negative impact of such communication would outweigh the public interest made thereby.
Deloitte & Touche Cai Meizhen, Accountant
Zhong Mingyuan, Accountant
FSC Approval No. FSC Approval No. FSC-A-1010028123 FSC-A-1050024633
March 16, 2023
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LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES Consolidated Balance Sheet As of December 31, 2022 and December 31, 2021
(In Thousands of New Taiwan Dollars)
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December 31, 2022 December 31, 2021
Code Asset Amount Amount
Current asset
1100 Cash and cash equivalents (Notes 4 and 6) $ 250,680 13 $ 729,431 34
1110 Financial Assets measured at fair value through profit and
loss - Current (Notes 4 and 7) 55,634 3 110,093 5
1170 Notes and Accounts Receivable (Notes 4, 5, 8 and 19) 169,644 9 322,377 15
130X Inventory (Notes 4, 5 and 9) 808,004 43 458,221 21
1470 Other current assets (Note 14) 36,407 2 23,317 1
11XX Total current assets 1,320,369 70 1,643,439 76
Non-Current Assets
1600 Real estate, plant and equipment (Notes 4 and 11) 529,530 28 471,671 22
1755 Right-of-use assets (Notes 4 and 12) 19,712 1 28,256 1
1780 Intangible assets (Notes 4 and 13) 13,829 1 9,504 -
1840 Deferred income tax assets (Notes 4 and 21) 91 - 23 -
1990 Other non-current assets (Notes 4 and 14) 8,871 - 19,403 1
15XX Total non-current assets 572,033 30 528,857 24
1XXX Total assets $ 1,892,402 100 $ 2,172,296 100
Liabilities and Equity
Current liability
2170 Payable account $ 63,567 3 $ 255,436 12
2200 Remuneration payable to staff and directors (Note 20) 37,508 2 78,321 4
2230 Current income tax liabilities (Notes 4 and 21) 15,120 1 59,187 3
2280 Lease liabilities - current (Notes 4 and 12) 12,415 1 11,138 -
2399 Other current liabilities (Note 15) 97,519 5 92,454 4
21XX Total current liabilities 226,129 12 496,536 23
Non-current liability
2580 Lease liabilities - non-current (Notes 4 and 12) 7,568 1 17,267 1
2640 Net defined benefit liabilities - non-current (Notes 4 and 16) 4,840 - 9,694 -
2645 Deposits received 914 - 1,246 -
25XX Total non-current liabilities 13,322 1 28,207 1
2XXX Total liabilities 239,451 13 524,743 24
Equity (Notes 4, 17 and 18)
Share capital
3110 Common stock 568,838 30 528,646 24
Capital reserve
3210 Share premium 258,027 14 273,131 13
3251 Donations received from shareholders 84,732 4 84,732 4
3273 Stocks with restricted employee's option 47,567 3 51,708 2
3280 Other 106 - 98 -
Retained earnings
3310 Statutory surplus reserves 199,793 11 166,987 8
3350 Undistributed earnings 520,231 27 582,957 27
Other equity
3410 Exchange difference in conversion of financial
- -
statements by foreign operating institutions 5,602 1,867
3491 Remuneration not gained by staff ( 31,945 ) ( 2 ) ( 42,573 ) ( 2 )
3XXX Total equity 1,652,951 87 1,647,553 76
Total liabilities and equity $ 1,892,402 100 $ 2,172,296 100
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The notes below are an integral part of these consolidated financial statements.
Chairman: Gao Yukun Manager: Gao Yukun Accounting manager: Huang Yaqing
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LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
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2022 2021
Code
Amount Amount
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| Operating revenues (Notes 4 and 19) 4110 Sales revenue 4170 Sales returns and allowances ( 4000 Net operating revenue Operating costs (Notes 9, 16 and 20) 5110 Cost of goods sold 5900 Operating margin Operating expenses (Notes 16 and 20) 6100 Amortization cost 6200 Management costs 6300 Research and development expenses 6000 Total operating expenses 6900 Net operating profit Non-operating income and expenditure (Note 20) 7100 Interest incomes 7010 Other Income 7020 Other interests and losses 7050 Financial Costs ( 7000 Total non-operating incomes and expenses 7900 Pre-tax net profit |
$ 1,665,321 33,444) ( 1,631,877 968,729 663,148 87,577 107,549 312,978 508,104 155,044 3,472 15,514 16,735 564) 35,157 190,201 |
102 $ 2,147,428 2) ( 12,945) ( 100 2,134,483 60 1,252,524 40 881,959 5 92,716 7 116,903 19 304,800 31 514,419 9 367,540 - 3,475 1 12,700 1 ( 5,977) - ( 235) 2 9,963 11 377,503 |
101 1) 100 59 41 4 6 14 24 17 - - - - - 17 |
|---|---|---|---|
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| 7950 Income tax expense (Notes 4 and 21) 8200 Net profit for the year Other composite gains and losses 8310 Items not reclassified as profit or loss: 8311 Revaluation of identified benefit plan (Note 16) 8360 Items that may be subsequently reclassifiedas profit or loss: 8361 Exchange difference in conversion of financial statements by foreign operating institutions (Note 17) 8300 Total other comprehensive net profit and loss 8500 Total consolidated profit and loss for the year Earnings per share (Note 22) 9750 Basic 9850 Dilutive |
37,838 152,363 $ 2,552 3,735 6,287 $ 158,650 2.74 2.66 |
2 48,526 9 328,977 - ($ 925) 1 ( 1,079) 1 ( 2,004) 10 $ 326,973 $ 5.97 $ 5.80 |
2 |
|---|---|---|---|
| 15 | |||
| - - |
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| - | |||
| 15 | |||
The notes below are an integral part of these consolidated financial statements.
Chairman: Gao Yukun Manager: Gao Yukun Accounting manager: Huang Yaqing
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LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(In Thousands of New Taiwan Dollars)
| Other equityitems | Other equityitems | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital on issued common shares | Capital | reserve | Retained earnings | Foreign operators | |||||||||||||||||||||||||
| Code | Number of Holdings (Shares In Thousands) |
Amount | Share | premium | Donations received from shareholders |
Restricted employee employee's option |
Other | Statutory surplus reserves |
Undistributed earnings |
Total | Exchange difference in conversion of financial statements |
Remuneration not gained by staff |
Total equity | ||||||||||||||||
| A1 | Balance as of January 1, 2021 | 47,774 |
$ | 477,742 |
$ | 289,560 |
$ | 84,732 | $ | 25,894 | $ | 90 | $ | 160,966 | $ | 313,738 | $ | 474,704 | $ | 2,946 |
( $ | 26,704 ) |
$ | 1,328,964 |
|||||
| Distribution of annual earnings for 2020: | |||||||||||||||||||||||||||||
| B1 | Statutory surplus reserves | - | - | - | - | - | - | 6,021 | ( | 6,021 ) | - | - | - | - | |||||||||||||||
| B5 | Cash dividend to shareholders - $0.603 per share | - | - | - | - | - | - | - | ( | 28,814 ) | ( | 28,814 ) | - | - |
( | 28,814 ) | |||||||||||||
| B9 | Stock dividend to shareholders - $0.503 per share | 2,401 |
24,012 | - |
- | - | - | - | ( | 24,012) | ( | 24,012) | - |
- |
- | ||||||||||||||
| Total distribution of earnings | 2,401 |
24,012 | - |
- | - | - | 6,021 | ( | 58,847) | ( | 52,826) | - |
- |
( | 28,814) | ||||||||||||||
| C13 | Capital reserve distributed stock dividend - $0.503 per share | 2,401 | 24,012 | ( | 24,012 ) | - | - | - | - | - | - | - | - | - | |||||||||||||||
| C17 | Changes in other capital reserves | - | - | - | - | - | 8 | - | - | - | - | - | 8 | ||||||||||||||||
| D1 | Net profit for 2021 | - | - | - | - | - | - | - | 328,977 | 328,977 | - | - | 328,977 | ||||||||||||||||
| D3 | Other consolidated profit/loss for 2021 | - |
- | - |
- | - | - | - | ( | 925) | ( | 925) | ( | 1,079) |
- |
( | 2,004) | ||||||||||||
| D5 | Total consolidated profit/loss for 2021 | - |
- | - |
- | - | - | - | 328,052 | 328,052 | ( | 1,079) |
- |
326,973 | |||||||||||||||
| N1 | Issued stocks with restricted employee's option | 300 | 3,000 | - | - | 33,600 | - | - | - | - | - |
( | 36,600 ) | - | |||||||||||||||
| N1 | Acquired stocks with restricted employee's option | - | - | 7,583 | - | ( | 7,583 ) | - | - | - | - | - | - | - | |||||||||||||||
| N1 | Canceled stocks with restricted employee's option | ( | 12 ) |
( | 120 | - | - | 120 | - | - | - | - | - | - | - | ||||||||||||||
| N1 | Compensation cost on stocks with restricted employee's option | - |
- | - |
- | ( | 323) | - | - | 14 | 14 | - |
20,731 |
20,422 | |||||||||||||||
| Z1 | Balance as of December 31, 2021 | 52,864 | 528,646 | 273,131 | 84,732 | 51,708 | 98 | 166,987 | 582,957 | 749,944 | 1,867 |
( | 42,573 ) | 1,647,553 | |||||||||||||||
| Distribution of annual earnings for 2021: | |||||||||||||||||||||||||||||
| B1 | Statutory surplus reserves | - | - | - | - | - | - | 32,806 | ( | 32,806 ) | - | - | - | - | |||||||||||||||
| B5 | Cash dividend to shareholders - $2.800 per share | - | - | - | - | - | - | - | ( | 147,868 ) | ( | 147,868 ) | - | - |
( | 147,868 ) | |||||||||||||
| B9 | Stock dividend to shareholders - $0.700 per share | 3,697 |
36,967 | - |
- | - | - | - | ( | 36,967) | ( | 36,967) | - |
- |
- | ||||||||||||||
| Total distribution of earnings | 3,697 |
36,967 | - |
- | - | - | 32,806 | ( | 217,641) | ( | 184,835) | - |
- |
( | 147,868) | ||||||||||||||
| C15 | Capital reserve distributed stock dividend - $0.500 per share | - | - | ( | 26,405 ) | - | - | - | - | - | - | - | - |
( | 26,405 ) | ||||||||||||||
| C17 | Changes in other capital reserves | - | - | - | - | - | 8 | - | - | - | - | - | 8 | ||||||||||||||||
| D1 | Net profit for 2022 | - | - | - | - | - | - | - | 152,363 | 152,363 | - | - | 152,363 | ||||||||||||||||
| D3 | Other consolidated profit/loss for 2022 | - |
- | - |
- | - | - | - | 2,552 | 2,552 | 3,735 |
- |
6,287 | ||||||||||||||||
| D5 | Total consolidated profit/loss for 2022 | - |
- | - |
- | - | - | - | 154,915 | 154,915 | 3,735 |
- |
158,650 | ||||||||||||||||
| N1 | Issued stocks with restricted employee's option | 420 | 4,200 | - | - | 15,582 | - | - | - | - | - |
( | 19,782 ) | - | |||||||||||||||
| N1 | Acquired stocks with restricted employee's option | - | - | 11,301 | - | ( | 11,301 ) | - | - | - | - | - | - | - | |||||||||||||||
| N1 | Canceled stocks with restricted employee's option | ( | 98 ) |
( | 975 | - | - | 975 | - | - | - | - | - | - | - | ||||||||||||||
| N1 | Compensation cost on stocks with restricted employee's option | - |
- | - |
- | ( | 9,397) | - | - | - | - | - |
30,410 |
21,013 | |||||||||||||||
| Z1 | Balance as of December 31, 2022 | 56,883 |
$ | 568,838 |
$ | 258,027 |
$ | 84,732 | $ | 47,567 | $ | 106 | $ | 199,793 | $ | 520,231 | $ | 720,024 | $ | 5,602 |
($ | 31,945) |
$ | 1,652,951 |
|||||
| The notes | below are an integral | part of these consolidated | financial statements. | ||||||||||||||||||||||||||
| Chairman: Gao Yukun | Manager: Gao Yukun | Accounting | manager: | Huang Yaqing |
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LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(In Thousands of New Taiwan Dollars)
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Code 2022 2021
Cash flow from operating activities
A10000 Pre-tax net profit $ 190,201 $ 377,503
A20010 Revenue expense loss items
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| A10000 A20010 |
Pre-tax net profit Revenue expense loss items |
$ | 190,201 | $ | 377,503 | |
|---|---|---|---|---|---|---|
| A20100 | Depreciation expense | 89,102 | 68,470 | |||
| A20200 | Amortization cost | 13,194 | 17,360 | |||
| A20400 | Net benefit of financial assets and | |||||
| liabilities measured at fair value | ||||||
| through profit and loss | ( | 1,227 ) | ( | 1,892 ) | ||
| A20900 | Financial Costs | 564 | 235 | |||
| A21200 | Interest incomes | ( | 3,472 ) | ( | 3,475 ) | |
| A21900 | Compensation cost on stocks | with | ||||
| restricted employee's option | 21,013 | 20,422 | ||||
| A22500 | Loss in disposal and abandonment of | |||||
| real estate, plant and equipment | 151 | - | ||||
| A24100 | Net gain/loss on foreign currency | |||||
| exchange | ( | 1,854 ) | 1,371 | |||
| A29900 | Benefit from lease modification | ( | 20 ) | ( | 3 ) | |
| A30000 | Net changes in operating assets | and | ||||
| liabilities | ||||||
| A31150 | Decrease/increase in notes |
and | ||||
| accounts receivable | 151,993 | ( | 119,311 ) | |||
| A31200 | Inventory increase | ( | 349,783 ) | ( | 119,568 ) | |
| A31240 | Decrease/increase in other current | |||||
| assets | 1,832 | ( | 11,736 ) | |||
| A32150 | Increase/decrease in notes payable | |||||
| and accounts | ( | 191,586 ) | 99,788 | |||
| A32200 | Increase/decrease in compensation | |||||
| payable to staff and directors | ( | 40,813 ) | 65,793 | |||
| A32230 | Increase in other current liabilities | 6,831 | 22,975 | |||
| A32240 | Decrease in net defined benefit | |||||
| liability | ( | 2,302) | ( | 1,901) | ||
| A33000 | Cash inflow to/outflow from operations | ( | 116,176 ) | 416,031 | ||
| A33300 | Interest paid | ( | 564 ) | ( | 235 ) | |
| A33500 | Income tax paid | ( | 81,973) | ( | 16,240) | |
| AAAA | Net cash inflow to/outflow | from | ||||
| operating activities | ( | 198,713) | 399,556 |
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| Cash flow from investment activities | ||||||
|---|---|---|---|---|---|---|
| B00100 | Acquisition of financial assets measured | |||||
| at fair value through profit and loss | ( | 57,304 ) | ( | 91,224 ) | ||
| B00200 | Dispose of financial assets measured at | |||||
| fair value through profit and loss | 114,608 | 25,195 | ||||
| B02700 | Acquisition of real estate, plant and | |||||
| equipment | ( | 124,711 ) | ( | 112,541 ) | ||
| B03700 | Increase in deposit margin | ( | 14,486 ) | ( | 1,250 ) | |
| B04500 | Acquisition of intangible assets | ( | 17,519 ) | ( | 10,614 ) | |
| B07500 | Interest received | 3,550 | 3,459 | |||
| BBBB | Net cash outflows from investment | |||||
| activities | ( | 95,862) | ( | 186,975) | ||
| Cash flows from financing activities | ||||||
| C03000 | Increase/decrease in deposits received | ( $ | 332 ) | $ | 380 | |
| C04020 | Repayment of lease principal | ( | 13,417 ) | ( | 13,340 ) | |
| C04500 | Cash dividends distributed | ( | 174,273 ) | ( | 28,814 ) | |
| C09900 | Other financing activities | 8 | 8 | |||
| CCCC | Net cash outflow to financing |
|||||
| activities | ( | 188,014) | ( | 41,766) | ||
| DDDD | Effect of exchange rate changes on cash and | |||||
| cash equivalents | 3,838 | ( | 2,407) | |||
| EEEE | Current net increase/decrease in cash and cash | |||||
| equivalents in current year | ( | 478,751 ) | 168,408 | |||
| E00100 | Balance of cash and cash equivalents at the | |||||
| beginning of the year | 729,431 | 561,023 | ||||
| E00200 | Balance of cash and cash equivalents at the end | |||||
| of the year | $ | 250,680 | $ | 729,431 |
The notes below are an integral part of these consolidated financial statements.
Chairman: Gao Yukun Manager: Gao Yukun Accounting manager: Huang Yaqing
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PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(In Thousands of New Taiwan Dollars)
| Code A1 Balance as of January 1, 2021 Distribution of annual earnings for 2020: B1 Statutory surplus reserves B5 Cash dividend to shareholders - $0.603 per share B9 Stock dividend to shareholders - $0.503 per share Total distribution of earnings C13 Capital reserve distributed stock dividend - $0.503 per share C17 Changes in other capital reserves D1 Net profit for 2021 D3 Other consolidated profit/loss for 2021 D5 Total consolidated profit/loss for 2021 N1 Issued stocks with restricted employee's option N1 Acquired stocks with restricted employee's option N1 Canceled stocks with restricted employee's option N1 Compensation cost on stocks with restricted employee's option Z1 Balance as of December 31, 2021 Distribution of annual earnings for 2021: B1 Statutory surplus reserves B5 Cash dividend to shareholders - $2.800 per share B9 Stock dividend to shareholders - $0.700 per share Total distribution of earnings C15 Cash dividend on capital reserves - $0.500 per share C17 Changes in other capital reserves D1 Net profit for 2022 D3 Other consolidated profit/loss for 111 D5 Total consolidated profit/loss for 111 N1 Issued stocks with restricted employee's option N1 Acquired stocks with restricted employee's option N1 Canceled stocks with restricted employee's option N1 Compensation cost on stocks with restricted employee's option Z1 Balance as of December 31, 2022 |
Capital on issued | co | mmon shares Amount $ 477,742 - - 24,012 24,012 24,012 - - - - 3,000 - 120 ) - 528,646 - - 36,967 36,967 - - - - - 4,200 - 975 ) - $ 568,838 |
Capital r | eserve | Other $ 90 - - - - - 8 - - - - - - - 98 - - - - - 8 - - - - - - - $ 106 |
Retained earnings | Retained earnings | Total $ 474,704 - 28,814 ) 24,012) 52,826) - - 328,977 925) 328,052 - - - 14 749,944 - 147,868 ) 36,967) 184,835) - - 152,363 2,552 154,915 - - - - $ 720,024 |
Other equityitems Foreign operators Exchange difference in conversion of financial statements Remuneration not gained bystaff $ 2,946 ( $ 26,704 ) - - - - - - - - - - - - - - ( 1,079) - ( 1,079) - - ( 36,600 ) - - - - - 20,731 1,867 ( 42,573 ) - - - - - - - - - - - - - - 3,735 - 3,735 - - ( 19,782 ) - - - - - 30,410 $ 5,602 ($ 31,945) |
Other equityitems Foreign operators Exchange difference in conversion of financial statements Remuneration not gained bystaff $ 2,946 ( $ 26,704 ) - - - - - - - - - - - - - - ( 1,079) - ( 1,079) - - ( 36,600 ) - - - - - 20,731 1,867 ( 42,573 ) - - - - - - - - - - - - - - 3,735 - 3,735 - - ( 19,782 ) - - - - - 30,410 $ 5,602 ($ 31,945) |
Total equity | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Foreign operators Exchange difference in conversion of financial statements $ 2,946 - - - - - - - ( 1,079) ( 1,079) - - - - 1,867 - - - - - - - 3,735 3,735 - - - - $ 5,602 |
||||||||||||||||||
| Share premium $ 289,560 - - - - 24,012 ) - - - - - 7,583 - - 273,131 - - - - 26,405 ) - - - - - 11,301 - - $ 258,027 |
Donations received from shareholders $ 84,732 - - - - - - - - - - - - - 84,732 - - - - - - - - - - - - - $ 84,732 |
Stocks with restricted employee's option $ 25,894 - - - - - - - - - 33,600 ( 7,583 ) 120 ( 323) 51,708 - - - - - - - - - 15,582 ( 11,301 ) 975 ( 9,397) $ 47,567 |
||||||||||||||||
| Number of Holdings (Shares In Thousand 47,774 - - 2,401 2,401 2,401 - - - - 300 - ( 12 ) - 52,864 - - 3,697 3,697 - - - - - 420 - ( 98 ) - 56,883 |
Statutory surplus reserves $ 160,966 6,021 - - 6,021 - - - - - - - - - 166,987 32,806 - - 32,806 - - - - - - - - - $ 199,793 |
Undistributed earnings $ 313,738 6,021 ) 28,814 ) 24,012) 58,847) - - 328,977 925) 328,052 - - - 14 582,957 32,806 ) 147,868 ) 36,967) 217,641) - - 152,363 2,552 154,915 - - - - $ 520,231 |
||||||||||||||||
( ( |
( ( |
( ( |
( ( ( ( |
( ( ( ( ( ( ( ( ( |
( ( ( ( ( ( ( |
( ( |
( ( ( ( ( |
( ( ( ( ( ( |
$ 1,328,964 - 28,814 ) - 28,814) - 8 328,977 2,004) 326,973 - - - 20,422 1,647,553 - 147,868 ) - 147,868) 26,405 ) 8 152,363 6,287 158,650 - - - 21,013 $ 1,652,951 |
The notes below are an integral part of these individual financial statements.
Chairman: Gao Yukun
Manager: Gao Yukun
Accounting manager: Huang Yaqing
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