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T.S.M.C. AGM Information 2025
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AGM Information
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Taiwan Styrene Monomer Corporation
2025 Annual General Shareholders' Meeting Minutes
(Translations)
Meeting Type: Physical Meeting
Time and Date: 9:30 a.m., May 28, 2025
Location: 8F., No.11, Zhongshan S. Rd., Zhongzheng Dist., Taipei City, Taiwan
(CHANG YUNG-FA FOUNDATION International Convention Center)
Total outstanding shares: The shareholders present in person and by proxy represented 340,824,653 shares (including votes casted electronically 70,578,440 votes) or 64.57% of the total 527,869,764 shares outstanding.
Attendees: Wen-Yuan Lin, Chairman
Chin-Chen Chien, Independent Director and Convener of the Audit Committee
Jui-Mu Huang, Independent Director
Lin, Wu, CPA of KPMG
T.K. Chung, President of Taiwan Styrene Monomer Corporation
Paul Chen, Chief Financial Officer of Taiwan Styrene Monomer Corporation
Chairman: Wen-Yuan Lin
Recorder: Tse-Yu Chen
I. Call Meeting to Order :
The aggregate shareholding of the attending shareholders constituted a quorum. The Chairman called the meeting to order.
II. Chairman's Remarks: (Omitted)
III. Report Items :
-
2024 Business Report
(Please refer to Attachment 1) -
2024 Audit Committee's Review Report
(Please refer to Attachment 2) -
Report on the Handling of the Company's Proposal for Cash Capital Increase by Private Placement of Common Stock
(Please refer to meeting handbook) -
1 -
IV. Adopting Items :
- To Adopt 2024 Business Report and Financial Statements
(Proposed by the Board of Directors)
Explanatory Notes :
(1) The 2024 Business Report and Financial Statements have been examined by the Audit Committee and approved by the Board of Directors. The 2024 Financial Statements were audited by independent auditors Lin Wu and Yung-Sheng Wang of KPMG Taiwan.
(2) The 2024 Business report, CPA’s Audit Report and Financial Statements, please refer to Attachment 1 and 3.
Resolution : This proposal was approved and adopted.
Voting Results :
Shares represented at the time of voting : 340,823,353 votes
| Voting Results
(including votes casted electronically) | | % of the total represented
share present |
| --- | --- | --- |
| Votes in favor | 332,727,667 votes | 97.62% |
| Votes against | 346,223 votes | 0.10% |
| Votes Invalid | 0 votes | 0.00% |
| Votes abstained | 7,749,463 votes | 2.27% |
- To Approve the Appropriation of Profit or Loss of 2024
(Proposed by the Board of Directors)
Explanatory Notes :
(1) The Company’s profit or loss appropriation of 2024 will be handled in accordance with the Company’s articles of association, the net loss after tax of the period is NT$380,846,000. The profit or loss appropriation table of 2024 is prepared, and no dividends will be distributed this year.
(2) The Profit or Loss Appropriation Table of 2024, please refer to Attachment 4.
Resolution : This proposal was approved and adopted.
Voting Results :
Shares represented at the time of voting : 340,823,353 votes
| Voting Results
(including votes casted electronically) | | % of the total represented
share present |
| --- | --- | --- |
| Votes in favor | 333,017,446 votes | 97.71% |
| Votes against | 383,463 votes | 0.11% |
| Votes Invalid | 0 votes | 0.00% |
| Votes abstained | 7,422,444 votes | 2.18% |
- 2 -
- 3 -
V. Discussion Items :
To Amend the Articles of Incorporation
(Proposed by the Board of Directors)
Explanatory Notes :
(1) To expand the energy trading business, it is planned to add a new business item "F401190 Natural Gas Import Enterprise".
(2) In accordance with the amendment of Article 14, Paragraph 6 of the Securities and Exchange Act, the Company referred to in the preceding paragraph shall specify in its articles of incorporation that a certain percentage of its annual earnings shall be allocated for salary adjustments or compensation distributions for its non-executive employees.
(3) The comparison table of the amended provisions, please refer to Attachment 5.
Resolution : This proposal was approved and adopted.
Voting Results :
Shares represented at the time of voting : 340,823,353 votes
| Voting Results
(including votes casted electronically) | | % of the total represented
share present |
| --- | --- | --- |
| Votes in favor | 333,000,079 votes | 97.70% |
| Votes against | 407,107 votes | 0.12% |
| Votes Invalid | 0 votes | 0.00% |
| Votes abstained | 7,416,167 votes | 2.18% |
VI. Extemporary Motions :
Summary of the Essential Points of the Proceedings :
Shareholder (Account No.245033) inquired about the operating status of the Company.
The above inquiries were responded by the Chairman.
VII. Meeting Adjourned : May 28, 2025 (Wed.) at 09:56 a.m.
(This 2025 AGM Minutes outlines main points of the meeting. The summary of shareholder's speech is documented in the Chinese version of AGM Minutes. In case of inconsistencies between the Chinese and English version, the Chinese version shall prevail. In addition, video recording of the meeting shall prevail as actual record of meeting procedure and contents.)
Chairman: Wen-Yuan Lin
Recorder: Tse-Yu Chen
Please note this document is prepared in accordance with the Chinese version and is for reference only. In the event of any discrepancy between the English version and the Chinese version, the Chinese version shall prevail.
[Attachment 1]
Taiwan Styrene Monomer Corporation 2024 Business Report
- Results of operations based on the business plan
During the fiscal year, the Company produced 292,539 tons and sold 296,840 tons of styrene monomer, with sales revenue NT$10,697,946 thousand. The total sales revenue reaches NT$11,243,294 thousand after including the sales revenue of by-product. For fiscal year of 2024, net loss after tax is NT$380,846 thousand.
- Budget Execution
Unit: NT$ Thousand
| Item | Actual amount of 2024 | Budget amount of 2024 |
|---|---|---|
| Net sales | 11,243,294 | 12,799,981 |
| Gross profit | (409,952) | 361,789 |
| Operating profit | (564,869) | 154,769 |
| Income before tax | (480,749) | 174,957 |
| Net income | (380,846) | 147,435 |
- Profitability Analysis
| Analyzed items | Year ended December 31, 2024 |
|---|---|
| Earnings (Loss) per share after tax (in NT$) | (0.72) |
| Net profit margin (%) | (3.39%) |
| Return on assets (ROA) (%) | (3.87%) |
| Return on equity (ROE) (%) | (5.32%) |
| Ratio of income before tax to paid-in capital (%) | (9.11%) |
- Research and Development
The Company's core business is styrene monomer. We continue not only debottlenecking of the production lines and increase the production efficiency, but process carbon reduction, the new product application and value-added improvement.
- The Company continues to develop materials applicable to electronic products and medical devices, extended the development of their applicable commercial fields, and has provided well-known domestic and international enterprises to conduct tests; the Company has already received positive responses.
- The Company aims to vertically integrate specialized chemical arterial which has obtained patents from numerous countries.
- The Company also cooperate with other companies in the development of commercialized professional coated machines of special chemical materials to commercialize and popularize by improving coating efficiency and quality.
- Establish Plant Information Management System (PIMS) to integrate production data and combine it with AI technology to improve overall factory efficiency.
- Cooperate with the Linyuan Industrial Park's AI smart technology improvement plan promoted by the Industrial Development Agency of the Ministry of Economic Affairs to improve factory safety, production efficiency and competitiveness.
5. Management Principles and Prospects
Looking back at the global economy over the past year (2024), the key factors include slowing inflation, easing labor market pressure and strong demand for AI related goods. The trade recovery in developed economies has been particularly significant. These economies have benefited from improvements in supply chains and increased demand for services. However, geopolitical risks, such as the continuation of the Russia-Ukraine war, rising tensions in the Middle East and the escalation of the US-China trade conflict, continue to undermine economic optimism.
Looking forward to this year (2025), the IMF estimates that the global economic growth will be 3.3% this year, which is equivalent to the 3.2% in last year (2024). The global economic outlook is still subject to the policy implementation of the new U.S. government. Although the recent U.S. economic performance has continued to exceed expectations, the possible major changes in U.S. fiscal, trade and immigration policies in the future are still unknown.
The new production capacity of SM was still 950,000 tons in China last year, and its new production capacity of SM will reach approximately 4 million tons in the next three years. The oversupply in the global market of SM has shown no signs of improvement in the near future. Therefore, the Company's operation strategy of SM will no longer pursue "full production and full sales", but will adopt short-chain supply, differentiated response, and expand recycling business of SM this year.
The Company's operating policy is to reduce expenses, CAPEX and control the volume of production, sales condition and inventory in time, and strengthens the operating performance of subsidiaries to reduce losses this year.
Chairman:
General Manager:
Accounting Manager:
区
[Attachment 2]
Audit Committee’s Review Report
The Board of Directors has prepared the Company’s 2024 Business Report, Financial Statements, including Consolidated and Individual Financial Statement, and Proposal for Profits Distribution. The CPA firm of KPMG was retained to audit Taiwan Styrene Monomer Corporation’s Financial Statements and has issued an audit report relating to Financial Statements. The Business Report, Financial Statements, and Proposal for Profits Distribution have been reviewed and determined to be correct and accurate by the Audit Committee members of Taiwan Styrene Monomer Corporation. According to the Securities and Exchange Act and the Company Act, we hereby submit this report. Please be advised accordingly.
To:
Taiwan Styrene Monomer Corporation
Chairman of Audit Committee: Chin-Chen Chien
March 12, 2025
[Attachment 3]
Independent Auditors’ Report
To the Board of Directors of Taiwan Styrene Monomer Corporation:
Opinion
We have audited the financial statements of Taiwan Styrene Monomer Corporation (“the Company”), which comprise the balance sheets as of December 31, 2024 and 2023, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.
In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter paragraph), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the current period. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
1. Revenue recognition
Regarding accounting policies on revenue recognition, please refer to note 4(n) “Revenue recognition” to the parent company only financial statements. For explanations on revenue recognition, please refer to note 6(s) "Revenue from contracts with customers" to the parent company only financial statements.
Description of the key audit matter:
The Company's sales revenue is recognized when a performance obligation is satisfied, which depends on the various trade terms agreed with customers. Therefore, the accuracy of revenue recognition is considered to be one of most significance in the audit.
How the matter was addressed in our audit:
Our principal audit procedures included assessing whether the accounting policies regarding to revenue recognition were inconformity with relevant accounting standards; obtaining understanding and testing the effectiveness of design and implementation of internal controls over revenue recognition; selecting samples and examining vouchers; selecting samples for a period of time before and after the balance sheet date and examining the transaction terms and relevant vouchers to assess whether sales revenue was recognized in an appropriate period; in addition, we also performed analytical procedures on primary customers and products to evaluate if there is any material abnormality.
- Impairment of non-financial assets (Property, plant and equipment, Intangible assets, and Right-of-use assets)
Regarding accounting policies on impairment of non-financial assets, please refer to note 4(n) “Impairment of non-financial assets” to the parent company only financial statements. For explanations on property, plant and equipment, intangible assets, and right-of-use assets, please refer to notes 6(h), 6(j), and 6(i) to the parent company only financial statements, respectively.
Description of the key audit matter:
The prosperity of the industry where the Company is located is affected by market environment factors and the economy, resulting in unfavorable changes to the Company. Therefore, the assessment of non-financial asset impairment is important. Since the evaluation process of impairment depends on the subjective judgment and estimates of the management, it is with a high degree of uncertainty. Therefore, the impairment assessment of non-financial assets is one of the key matters in the audit.
How the matter was addressed in our audit:
Our principal audit procedures for the aforementioned key audit matters included understanding the processes of management's assessment of impairment; evaluating the professional competence, suitability, and objectivity of management's experts; for the recoverable amount determined by management based on the evaluation report issued by a third party, we assessed the impairment model, verified the company's budget and financial forecasts, evaluated the appropriateness of key assumptions used in estimating future cash flows, verified the sources of parameters used in calculating the discount rate, and performed retrospective testing to assess whether there were significant differences between the company's past estimates of future cash flows and actual results. Additionally, we also reviewed whether the book value of the company's non-financial assets was consistent with the results of the evaluation report.
Other Matter
We did not audit the financial statements of some equity-accounted investees of the Company (including those statements which were prepared using a difference financial reporting framework). Those statements were audited by other auditors, whose reports have been furnished to us. We have performed audit procedures on the conversion adjustments to the financial statements of those investees, which conform to those financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Our opinion, insofar as it relates to the amounts included for those investees and the amounts prior to the conversion adjustments, is based solely on the reports of other auditors. Investments accounted for using equity method on those investees constituting 22.46% and 19.39% of total assets at December 31, 2024 and 2023, and the related share of profit of subsidiaries, associates and joint ventures accounted for using equity method constituting 9.84% and 2.44% of total loss before tax for the years then ended.
- 8 -
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
9 -
- Obtain sufficient appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors’ report are Wu, Lin and Wang, Yung-Sheng.
KPMG
Taipei, Taiwan (Republic of China)
March 12, 2025
Notes to Readers
The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally accepted and applied in the Republic of China.
The independent auditors’ report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent company only financial statements, the Chinese version shall prevail.
- 10 -
(English Translation of Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION
Balance Sheets
December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
| Assets | December 31, 2024 | December 31, 2023 | Liabilities and Equity | December 31, 2024 | December 31, 2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | Amount | % | ||||
| Current assets: | Current liabilities: | ||||||||||
| 1100 | Cash and cash equivalents (note 6(a)) | $ 91,828 | 1 | 165,508 | 2 | 2100 | Short-term borrowings (notes 6(l) and 8) | $ 1,185,000 | 12 | 1,000,000 | 11 |
| 1110 | Current financial assets at fair value through profit or loss (note 6(b)) | 95,388 | 1 | 138,940 | 2 | 2130 | Contract liabilities (note 6(x)) | - | - | 1,957 | - |
| 1170 | Accounts receivable, net (note 6(c)) | 977,485 | 10 | 796,319 | 9 | 2170 | Accounts payable | 764,460 | 8 | 999,944 | 11 |
| 1200 | Other receivables (note 7) | 1,556 | - | 2,430 | - | 2200 | Other payables (note 6(m)) | 96,000 | 1 | 91,121 | 1 |
| 1220 | Current tax assets | 1,148 | - | 6,333 | - | 2280 | Current lease liabilities (note 6(n)) | 3,818 | - | 5,083 | - |
| 130X | Inventories (note 6(d)) | 455,229 | 5 | 730,526 | 8 | 2399 | Other current liabilities | 2,156 | - | 2,240 | - |
| 1410 | Prepayments (note 6(e)) | 187,700 | 2 | 183,490 | 2 | Total current liabilities | 2,051,434 | 21 | 2,100,345 | 23 | |
| 1476 | Other current financial assets | 20,000 | - | - | - | ||||||
| Total current assets | 1,830,334 | 19 | 2,023,546 | 23 | 2570 | Deferred tax liabilities (note 6(p)) | 173,548 | 2 | 173,509 | 2 | |
| Non-current assets: | 2580 | Non-current lease liabilities (note 6(n)) | 6,919 | - | 10,647 | - | |||||
| 1517 | Non-current financial assets at fair value through other comprehensive income (note 6(f)) | 1,234,431 | 13 | 960,051 | 10 | 2640 | Net defined benefit liabilities, non-current (note 6(o)) | 37,657 | - | 44,686 | - |
| 1550 | Investments accounted for using equity method (note 6(g)) | 3,984,926 | 41 | 3,503,366 | 38 | Total non-current liabilities | 218,124 | 2 | 228,842 | 2 | |
| 1600 | Property, plant and equipment (note 6(h)) | 2,099,364 | 22 | 2,342,152 | 25 | Total liabilities | 2,269,558 | 23 | 2,329,187 | 25 | |
| 1755 | Right-of-use assets (note 6(i)) | 11,102 | - | 16,352 | - | 3100 | Equity (note 6(q)): | ||||
| 1780 | Intangible assets (note 6(j)) | 3,731 | - | 5,396 | - | 3200 | Capital stock | 5,278,698 | 55 | 5,278,698 | 57 |
| 1840 | Deferred tax assets (note 6(p)) | 448,317 | 5 | 348,573 | 4 | Capital surplus | 129,663 | 1 | 75,728 | 1 | |
| 1920 | Refundable deposits | 3,729 | - | 3,729 | - | Retained earnings: | |||||
| 1915 | Prepayments for equipment | 25,690 | - | 13,944 | - | 3310 | Legal reserve | 639,287 | 7 | 639,287 | 7 |
| 1995 | Other non-current assets, others (note 6(k)) | 19,735 | - | 39,563 | - | 3320 | Special reserve | 8,811 | - | 223,663 | 2 |
| Total non-current assets | 7,831,025 | 81 | 7,233,126 | 77 | 3350 | Unappropriated retained earnings | 44,872 | - | (45,013) | - | |
| 692,970 | 7 | 817,937 | 9 | ||||||||
| 3400 | Other equity | 1,290,470 | 14 | 755,122 | 8 | ||||||
| Total equity | 7,391,801 | 77 | 6,927,485 | 75 | |||||||
| Total liabilities and equity | $ 9,661,359 | 100 | 9,256,672 | 100 |
See accompanying notes to financial statements.
(English Translation of Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION
Statements of Comprehensive Income
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars, Except for loss Per Share)
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| 4000 | Operating revenue (note 6(s)) | $ 11,243,294 | 100 | 9,319,242 | 100 |
| 5000 | Operating costs (notes 6(d), (h), (i), (j), (n), (o), (u) and 7) | 11,653,246 | 104 | 9,823,925 | 105 |
| Gross loss from operations | (409,952) | (4) | (504,683) | (5) | |
| Operating expenses (notes 6(c), (h), (i), (j), (n), (o), (u) and 7): | |||||
| 6100 | Selling expenses | 66,229 | 1 | 57,429 | 1 |
| 6200 | Administrative expenses | 88,679 | 1 | 86,017 | 1 |
| 6450 | Expected credit impairment loss (gain) | 9 | - | (8) | - |
| 154,917 | 2 | 143,438 | 2 | ||
| Operating losses | (564,869) | (6) | (648,121) | (7) | |
| Non-operating income and expenses (notes 6(f), (g), (n), (t) and 7): | |||||
| 7100 | Interest income | 6,939 | - | 5,099 | - |
| 7010 | Other income | 17,962 | - | 17,471 | - |
| 7020 | Other gains and losses | 111,101 | 1 | 31,454 | 1 |
| 7050 | Finance costs | (19,061) | - | (14,486) | - |
| 7070 | Share of (loss) profit of subsidiaries, associates and joint ventures accounted for using equity method | (32,821) | - | 12,680 | - |
| 84,120 | 1 | 52,218 | 1 | ||
| 9900 | Loss before tax | (480,749) | (5) | (595,903) | (6) |
| 7950 | Income tax benefits (note 6(p)) | 99,903 | 1 | 133,719 | 1 |
| Net loss | (380,846) | (4) | (462,184) | (5) | |
| 8300 | Other comprehensive income (loss): | ||||
| 8310 | Components of other comprehensive income (loss) that will not be reclassified to profit or loss | ||||
| 8311 | Remeasurements of defined benefit plans | 958 | - | 6,370 | - |
| 8316 | Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income | 277,855 | 2 | 316,768 | 3 |
| 8330 | Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss | 472,937 | 4 | 697,527 | 7 |
| 8349 | Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | 192 | - | 1,274 | - |
| Components of other comprehensive income that will not be reclassified to profit or loss | 751,558 | 6 | 1,019,391 | 10 | |
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss | ||||
| 8361 | Exchange differences on translation | 876 | - | - | - |
| 8380 | Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss | 38,848 | - | (824) | - |
| 8399 | Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss | - | - | - | - |
| Components of other comprehensive income (loss) that will be reclassified to profit or loss | 39,724 | - | (824) | - | |
| 8300 | Other comprehensive income | 791,282 | 6 | 1,018,567 | 10 |
| 8500 | Comprehensive income | $ 410,436 | 2 | 556,383 | 5 |
| Loss per share (note 6(r)) | |||||
| Basic loss per share | $ | (0.72) | (0.88) | ||
| Diluted loss per share | $ | (0.72) | (0.88) |
See accompanying notes to financial statements.
(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION
Statements of Changes in Equity
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
| Common stock | Capital surplus | Retained earnings | Other equity interest | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Legal reserve | Special reserve | Unappropriated retained earnings | Total | Exchange differences on translation of foreign financial statements | Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income | Total | Total equity | |||
| Balance at January 1, 2023 | $ 5,278,698 | 70,947 | 639,287 | 8,811 | 688,983 | 1,337,081 | (7,392) | (207,460) | (214,852) | 6,471,874 |
| Appropriation and distribution of retained earnings: | ||||||||||
| Special reserve appropriated | - | - | - | 214,852 | (214,852) | - | - | - | - | - |
| Cash dividends of ordinary share | - | - | - | - | (105,553) | (105,553) | - | - | - | (105,553) |
| Overdue dividends not received by shareholders | - | 4,702 | - | - | - | - | - | - | - | 4,702 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | (1,771) | (1,771) | - | 1,771 | 1,771 | - |
| Associates disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 45,216 | 45,216 | - | (45,216) | (45,216) | - |
| Changes in ownership interests for using equity method | - | 86 | - | - | - | - | - | - | - | 86 |
| Changes in ownership interests in subsidiaries | - | (7) | - | - | - | - | - | - | - | (7) |
| Net loss | - | - | - | - | (462,184) | (462,184) | - | - | - | (462,184) |
| Other comprehensive income | - | - | - | - | 5,148 | 5,148 | (824) | 1,014,243 | 1,013,419 | 1,018,567 |
| Total comprehensive income | - | - | - | - | (457,036) | (457,036) | (824) | 1,014,243 | 1,013,419 | 556,383 |
| Balance at December 31, 2023 | 5,278,698 | 75,728 | 639,287 | 223,663 | (45,013) | 817,937 | (8,216) | 763,338 | 755,122 | 6,927,485 |
| Appropriation and distribution of retained earnings: | ||||||||||
| Reversal of special reserve | - | - | - | (214,852) | 214,852 | - | - | - | - | - |
| Changes in equity of associates and joint ventures accounted for using equity method | - | 1,070 | - | - | (55) | (55) | - | - | - | 1,015 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 254,447 | 254,447 | - | (254,447) | (254,447) | - |
| Changes in ownership interests in subsidiaries | - | 52,865 | - | - | - | - | - | - | - | 52,865 |
| Net loss | - | - | - | - | (380,846) | (380,846) | - | - | - | (380,846) |
| Other comprehensive income | - | - | - | - | 1,487 | 1,487 | 39,724 | 750,071 | 789,795 | 791,282 |
| Total comprehensive income | - | - | - | - | (379,359) | (379,359) | 39,724 | 750,071 | 789,795 | 410,436 |
| Balance at December 31, 2024 | $ 5,278,698 | 129,663 | 639,287 | 8,811 | 44,872 | 692,970 | 31,508 | 1,258,962 | 1,290,470 | 7,391,801 |
See accompanying notes to financial statements.
(English Translation of Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION
Statements of Cash Flows
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
| 2024 | 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Loss before tax | $ (480,749) | (595,903) |
| Adjustments: | ||
| Adjustments to reconcile profit loss | ||
| Depreciation expense | 248,566 | 252,446 |
| Amortization expense | 1,665 | 1,519 |
| Expected credit impairment loss (gain) | 9 | (8) |
| Interest expense | 19,061 | 14,486 |
| Interest income | (6,939) | (5,099) |
| Dividend income | (15,140) | (11,514) |
| Share of loss (gain) of subsidiaries, associates and joint ventures accounted for using equity method | 32,821 | (12,680) |
| Reversal of impairment loss on financial assets | - | (14,856) |
| (Reversal of) impairment loss on non-financial assets | (650) | 248 |
| Gain on lease modification | (27) | (28) |
| Loss from decline (gain from recovery) in value of inventories | (45,456) | 48,051 |
| Total adjustments to reconcile loss | 233,910 | 272,565 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Financial assets mandatorily measured at fair value through profit or loss | 43,552 | (18,402) |
| Accounts receivable | (181,175) | 167,334 |
| Other receivables | 747 | 33 |
| Inventories | 320,753 | (211,374) |
| Prepayments | (2,610) | 3,432 |
| Total changes in operating assets | 181,267 | (58,977) |
| Changes in operating liabilities: | ||
| Contract liabilities | (1,957) | (5,872) |
| Accounts payable | (235,484) | 110,902 |
| Other payables | 10,175 | 7,266 |
| Other current liabilities | (84) | 62 |
| Net defined benefit liabilities | (6,071) | 950 |
| Total changes in operating liabilities | (233,421) | 113,308 |
| Total changes in operating assets and liabilities | (52,154) | 54,331 |
| Cash outflow generated from operations | (298,993) | (269,007) |
| Interest received | 7,066 | 4,946 |
| Dividends received | 15,140 | 11,435 |
| Interest paid | (19,331) | (14,203) |
| Income taxes refunded (paid) | 5,191 | (461) |
| Net cash flows used in operating activities | (290,927) | (267,290) |
| Cash flows from investing activities: | ||
| Proceeds from disposal of financial assets at fair value through other comprehensive income | - | 288 |
| Proceeds from capital reduction of financial assets at fair value through other comprehensive income | 3,475 | - |
| Proceeds from disposal of non-current assets classified as held for sale | - | 1,288 |
| Acquisition of property, plant and equipment | (21,128) | (82,739) |
| Increase in refundable deposits | (15) | (91) |
| Decrease in refundable deposits | 15 | 7 |
| Acquisition of intangible assets | - | (790) |
| Increase in other financial assets | (20,000) | - |
| Decrease (increase) in other non-current assets | 22,828 | (15,604) |
| Increase in prepayments for equipment | - | (950) |
| Dividends received | 52,160 | 24,860 |
| Net cash flows from (used in) investing activities | 37,335 | (73,731) |
| Cash flows from financing activities: | ||
| Increase in short-term borrowings | 7,065,000 | 4,802,000 |
| Decrease in short-term borrowings | (6,880,000) | (4,502,000) |
| Payment of lease liabilities | (5,088) | (5,496) |
| Cash dividends paid | - | (105,553) |
| Net cash flows from financing activities | 179,912 | 188,951 |
| Net decrease in cash and cash equivalents | (73,680) | (152,070) |
| Cash and cash equivalents at beginning of period | 165,508 | 317,578 |
| Cash and cash equivalents at end of period | $ 91,828 | 165,508 |
See accompanying notes to financial statements.
Independent Auditors’ Report
To the Board of Directors of Taiwan Styrene Monomer Corporation:
Opinion
We have audited the consolidated financial statements of Taiwan Styrene Monomer Corporation and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.
In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
- Revenue recognition
Regarding accounting policies on revenue recognition, please refer to note 4(o) “Revenue recognition” to the consolidated financial statements. For explanations on revenue recognition, please refer to note 6(x) “Revenue from contracts with customers” to the consolidated financial statements.
Description of the key audit matter:
The Group's sales revenue is recognized when a performance obligation is satisfied, which depends on the various trade terms agreed with customers. Therefore, the accuracy of revenue recognition is considered to be one of most significance in the audit.
- 15 -
How the matter was addressed in our audit
Our principal audit procedures included assessing whether the accounting policies regarding to revenue recognition were inconformity with relevant accounting standards; obtaining understanding and testing the effectiveness of design and implementation of internal controls over revenue recognition; selecting samples and examining vouchers; selecting samples for a period of time before and after the balance sheet date and examining the transactions terms and relevant vouchers to assess whether sales revenue was recognized in an appropriate period; in addition, we also performed analytical procedures on primary customers and products to evaluate if there is any material abnormality.
- Impairment of non-financial assets (Property, plant and equipment, Intangible assets, and Right-of-use assets)
Regarding accounting policies on impairment of non-financial assets, please refer to note 4(n) “Impairment of non-financial assets” to the consolidated financial statements. For explanations on property, plant and equipment, intangible assets, and right-of-use assets, please refer to notes 6(j), 6(m), and 6(k) to the consolidated financial statements, respectively.
Description of the key audit matter:
The prosperity of the industry where the Group is located is affected by market environment factors and the economy, resulting in unfavorable changes to the Group. Therefore, the assessment of non-financial asset impairment is important. Since the evaluation process of impairment depends on the subjective judgment and estimates of the management, it is with a high degree of uncertainty. Therefore, the impairment assessment of non-financial assets is one of the key matters in the audit.
How the matter was addressed in our audit:
Our principal audit procedures for the aforementioned key audit matters included understanding the processes of management's assessment of impairment; evaluating the professional competence, suitability, and objectivity of management’s experts; for the recoverable amount determined by management based on the evaluation report issued by a third party, we assessed the impairment model, verified the company’s budget and financial forecasts, evaluated the appropriateness of key assumptions used in estimating future cash flows, verified the sources of parameters used in calculating the discount rate, and performed retrospective testing to assess whether there were significant differences between the company’s past estimates of future cash flows and actual results. Additionally, we also reviewed whether the book value of the company's non-financial assets was consistent with the results of the evaluation report.
Other Matter
We did not audit the financial statements of some equity-accounted investees of the Group (including those statements which were prepared using a difference financial reporting framework). Those statements were audited by other auditors, whose reports have been furnished to us. We have performed audit procedures on the conversion adjustments to the financial statements of those investees, which conform to those financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRS, IAS, IFRIC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our opinion, insofar as it relates to the amounts included for those investees and the amounts prior to the conversion adjustments, is based solely on the reports of other auditors. Investments accounted for using equity method on those investees constituting 21.66% and 18.78% of total assets at December 31, 2024 and 2023, and the related share of profit of subsidiaries, associates and joint ventures accounted for using equity method constituting 9.80% and 3.35% of total loss before tax for the years then ended.
Taiwan Styrene Monomer Corporation has prepared its parent-company-only financial statements as of and for the years ended December 31, 2024 and 2023, on which we have issued an unqualified opinion with other matters paragraph.
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Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IASs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the Audit Committee) are responsible for overseeing the Group’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
17 -
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors' report are Wu, Lin and Wang, Yung-Sheng.
KPMG
Taipei, Taiwan (Republic of China)
March 12, 2025
Notes to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.
The independent auditors' report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and consolidated financial statements, the Chinese version shall prevail.
- 18 -
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
| Assets | December 31, 2024 | December 31, 2023 | |||
|---|---|---|---|---|---|
| Current assets: | Amount | % | Amount | % | |
| 1100 | Cash and cash equivalents (note 6(a)) | $ 497,755 | 5 | 604,092 | 7 |
| 1110 | Current financial assets at fair value through profit or loss (note 6(b)) | 263,756 | 3 | 274,305 | 3 |
| 1170 | Accounts receivable, net (note 6(c)) | 1,015,919 | 11 | 821,164 | 8 |
| 1200 | Other receivables (note 7) | 3,875 | - | 2,451 | - |
| 1220 | Current tax assets | 2,307 | - | 6,453 | - |
| 130X | Inventories (note 6(d)) | 456,685 | 5 | 731,690 | 8 |
| 1410 | Prepayments (note 6(e)) | 202,733 | 2 | 198,347 | 2 |
| 1470 | Other current assets | 225 | - | 1,726 | - |
| 1476 | Other current financial assets (notes 6(f) and 8) | 33,860 | - | 46,206 | - |
| Total current assets | 2,477,115 | 26 | 2,686,434 | 28 | |
| Non-current assets: | |||||
| 1510 | Non-current financial assets at fair value through profit or loss (note 6(b)) | 6,967 | - | 7,136 | - |
| 1517 | Non-current financial assets at fair value through other comprehensive income (note 6(g)) | 1,526,257 | 15 | 1,217,382 | 12 |
| 1550 | Investments accounted for using equity method (note 6(h)) | 2,193,854 | 22 | 1,850,830 | 19 |
| 1600 | Property, plant and equipment (notes 6(j) and 8) | 3,212,795 | 32 | 3,480,076 | 36 |
| 1755 | Right-of-use assets (note 6(k)) | 12,483 | - | 19,713 | - |
| 1760 | Investment property, net (note 6(l)) | 55,950 | 1 | 56,296 | 1 |
| 1780 | Intangible assets (note 6(m)) | 3,731 | - | 5,396 | - |
| 1840 | Deferred tax assets (note 6(u)) | 448,967 | 4 | 350,095 | 4 |
| 1915 | Prepayments for equipment | 25,690 | - | 13,944 | - |
| 1970 | Other long-term investments, net (note 6(n)) | 24,986 | - | 25,998 | - |
| 1920 | Refundable deposits | 3,839 | - | 3,853 | - |
| 1990 | Other non-current assets (note 6(o)) | 27,472 | - | 46,051 | - |
| Total non-current assets | 7,542,991 | 74 | 7,076,770 | 72 | |
Total assets
See accompanying notes to financial statements.
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars, Except for loss Per Share)
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| 4000 | Operating revenue (notes 6(h) and (x)) | $ 11,422,940 | 100 | 9,541,182 | 100 |
| 5000 | Operating costs (notes 6(d), (j), (k), (l), (m), (s) and (t)) | 11,771,760 | 103 | 9,952,545 | 104 |
| Gross loss from operations | (348,820) | (3) | (411,363) | (4) | |
| Operating expenses (notes 6(c), (j), (k), (l), (m), (s) and (t)): | |||||
| 6100 | Selling expenses | 71,085 | 1 | 62,325 | 1 |
| 6200 | Administrative expenses | 132,075 | 1 | 136,312 | 1 |
| 6300 | Research and development expenses | 322 | - | 431 | - |
| 6450 | Expected credit impairment loss | 17 | - | 81 | - |
| 203,499 | 2 | 199,149 | 2 | ||
| Operating loss | (552,319) | (5) | (610,512) | (6) | |
| Non-operating income and expenses (notes 6(h), (s) and (y)): | |||||
| 7100 | Interest income | 16,468 | - | 7,876 | - |
| 7010 | Other income | 23,350 | - | 22,383 | - |
| 7020 | Other gains and losses | 100,552 | 1 | 30,304 | - |
| 7050 | Finance costs | (22,691) | - | (18,169) | - |
| 7060 | Shares of profit (loss) of associates and joint ventures accounted for using equity method | (47,840) | - | (14,943) | - |
| 69,839 | 1 | 27,451 | - | ||
| 9900 | Loss before tax | (482,480) | (4) | (583,061) | (6) |
| 7950 | Income tax benefits (expenses) (note 6(u)) | 98,873 | (1) | 122,402 | 1 |
| Net loss | (383,607) | (3) | (460,659) | (5) | |
| 8300 | Other comprehensive income: | ||||
| 8310 | Components of other comprehensive income (loss) that will not be reclassified to profit or loss | ||||
| 8311 | Remeasurements of defined benefit plans | 2,126 | - | 6,455 | - |
| 8316 | Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income | 295,479 | 3 | 329,321 | 3 |
| 8320 | Shares of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss | 454,594 | 4 | 684,923 | 7 |
| 8349 | Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | 425 | - | 1,291 | - |
| Components of other comprehensive income that will not be reclassified to profit or loss | 751,774 | 7 | 1,019,408 | 10 | |
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss | ||||
| 8361 | Exchange differences on translation | 42,452 | - | (1,173) | - |
| 8370 | Shares of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss | 5,497 | - | (98) | - |
| 8399 | Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss | - | - | - | - |
| Components of other comprehensive income (loss) that will be reclassified to profit or loss | 47,949 | - | (1,271) | - | |
| 8300 | Other comprehensive income, net | 799,723 | 7 | 1,018,137 | 10 |
| 8500 | Comprehensive income | $ 416,116 | 4 | 557,478 | 5 |
| Profit (loss) attributable to: | |||||
| 8610 | Owners of parent | $ (380,846) | (3) | (462,184) | (5) |
| 8620 | Non-controlling interests | (2,761) | - | 1,525 | - |
| $ (383,607) | (3) | (460,659) | (5) | ||
| Comprehensive income attributable to: | |||||
| 8710 | Owners of parent | $ 410,436 | 4 | 556,383 | 5 |
| 8720 | Non-controlling interests | 5,680 | - | 1,095 | - |
| $ 416,116 | 4 | 557,478 | 5 | ||
| Losses per share (note 6(w)) | |||||
| Basic loss per share | $ | (0.72) | (0.88) | ||
| Diluted loss per share | $ | (0.72) | (0.88) |
See accompanying notes to financial statements.
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
| Equity attributable to owners of parent | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Retained earnings | Other equity interest | |||||||||||
| Ordinary shares | Capital surplus | Legal reserve | Special reserve | Unappropriated retained earnings | Total | Exchange differences on translation of foreign financial statements | Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income | Total | Total equity attributable to owners of parent | Non-controlling interests | Total equity | |
| Balance at January 1, 2023 | $ 5,278,698 | 70,947 | 639,287 | 8,811 | 688,983 | 1,337,081 | (7,392) | (207,460) | (214,852) | 6,471,874 | 250,372 | 6,722,246 |
| Appropriation and distribution of retained earnings: | ||||||||||||
| Special reserve appropriated | - | - | - | 214,852 | (214,852) | - | - | - | - | - | - | - |
| Cash dividends of ordinary share | - | - | - | - | (105,553) | (105,553) | - | - | - | (105,553) | - | (105,553) |
| Overdue dividends not received by shareholders | - | 4,702 | - | - | - | - | - | - | - | 4,702 | - | 4,702 |
| Changes in ownership interests in subsidiaries | - | (7) | - | - | - | - | - | - | - | (7) | 4,121 | 4,114 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | (1,771) | (1,771) | - | 1,771 | 1,771 | - | - | - |
| Associates disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 45,216 | 45,216 | - | (45,216) | (45,216) | - | - | - |
| Changes in ownership interests in associates | - | 86 | - | - | - | - | - | - | - | 86 | - | 86 |
| Net loss | - | - | - | - | (462,184) | (462,184) | - | - | - | (462,184) | 1,525 | (460,659) |
| Other comprehensive income | - | - | - | - | 5,148 | 5,148 | (824) | 1,014,243 | 1,013,419 | 1,018,567 | (430) | 1,018,137 |
| Total comprehensive income | - | - | - | - | (457,036) | (457,036) | (824) | 1,014,243 | 1,013,419 | 556,383 | 1,095 | 557,478 |
| Balance at December 31, 2023 | 5,278,698 | 75,728 | 639,287 | 223,663 | (45,013) | 817,937 | (8,216) | 763,338 | 755,122 | 6,927,485 | 255,588 | 7,183,073 |
| Appropriation and distribution of retained earnings: | ||||||||||||
| Reversal of special reserve | - | - | - | (214,852) | 214,852 | - | - | - | - | - | - | - |
| Changes in equity of associates and joint ventures accounted for using equity method | - | 1,070 | - | - | (55) | (55) | - | - | - | 1,015 | - | 1,015 |
| Changes in ownership interests in subsidiaries | - | 52,865 | - | - | - | - | - | - | - | 52,865 | (95,822) | (42,957) |
| Associates disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 254,447 | 254,447 | - | (254,447) | (254,447) | - | - | - |
| Net loss | - | - | - | - | (380,846) | (380,846) | - | - | - | (380,846) | (2,761) | (383,607) |
| Other comprehensive income | - | - | - | - | 1,487 | 1,487 | 39,724 | 750,071 | 789,795 | 791,282 | 8,441 | 799,723 |
| Total comprehensive income | - | - | - | - | (379,359) | (379,359) | 39,724 | 750,071 | 789,795 | 410,436 | 5,680 | 416,116 |
| Distribution cash dividend by subsidiaries to non-controlling interests | - | - | - | - | - | - | - | - | - | - | (33,363) | (33,363) |
| Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | (5,882) | (5,882) |
| Balance at December 31, 2024 | $ 5,278,698 | 129,663 | 639,287 | 8,811 | 44,872 | 692,970 | 31,508 | 1,258,962 | 1,290,470 | 7,391,801 | 126,201 | 7,518,002 |
See accompanying notes to financial statements.
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
| 2024 | 2023 | |
|---|---|---|
| Cash flows used in operating activities: | ||
| Loss before tax | $ (482,480) | (583,061) |
| Adjustments: | ||
| Adjustments to reconcile loss | ||
| Depreciation expense | 274,235 | 277,635 |
| Amortization expense | 1,665 | 1,519 |
| Expected credit impairment loss | 17 | 81 |
| Interest expense | 22,691 | 18,169 |
| Interest income | (16,468) | (7,876) |
| Dividend income | (19,003) | (14,239) |
| Share of loss of associates and joint ventures accounted for using equity method | 45,988 | 19,923 |
| Loss on disposal of property, plant and equipment | 70 | 97 |
| Loss on disposal of investments | 2,984 | 198 |
| Impairment loss on financial assets | - | (14,856) |
| (Reversal of) impairment loss on non-financial assets | (650) | 248 |
| Gain on lease modification | (27) | (29) |
| (Gain from recovery) loss from decline in value of inventories | (45,456) | 48,051 |
| Total adjustments to reconcile loss | 266,046 | 328,921 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Financial assets mandatorily measured at fair value through profit or loss | 10,718 | (50,153) |
| Accounts receivable | (196,074) | 153,862 |
| Other receivables | 744 | 36 |
| Inventories | 320,461 | (210,951) |
| Prepayments | 18,784 | (11,739) |
| Other current assets | 1,501 | (1,459) |
| Other current financial assets | 12,346 | (9,791) |
| Total changes in operating assets | 168,480 | (130,195) |
| Changes in operating liabilities: | ||
| Current contract liabilities | 1,761 | (7,662) |
| Accounts payable | (241,183) | 115,821 |
| Other payables | 5,555 | 8,115 |
| Other current liabilities | 112 | (2) |
| Net defined benefit liabilities | (4,904) | 950 |
| Total changes in operating liabilities | (238,659) | 117,222 |
| Total changes in operating assets and liabilities | (70,179) | (12,973) |
See accompanying notes to financial statements.
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Continued)
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
| 2024 | 2023 | |
|---|---|---|
| Cash outflow from operations | $ (286,613) | (267,113) |
| Interest received | 14,300 | 7,791 |
| Dividends received | 18,912 | 14,160 |
| Interest paid | (22,953) | (17,874) |
| Income taxes refunded (paid) | 1,035 | (11,098) |
| Net cash flows used in operating activities | (275,319) | (274,134) |
| Cash flows from investing activities: | ||
| Proceeds from disposal of financial assets at fair value through other comprehensive income | - | 288 |
| Proceeds from capital reduction of financial assets at fair value through other comprehensive income | 4,080 | - |
| Proceeds from disposal of investments accounted for using equity method | 37,355 | - |
| Proceeds from disposal of non-current assets classified as held for sale | - | 5,474 |
| Acquisition of property, plant and equipment | (23,834) | (99,724) |
| Proceeds from disposal of property, plant and equipment | - | 20 |
| Increase in refundable deposits | (25) | (121) |
| Decrease in refundable deposits | 39 | 86 |
| Acquisition of intangible assets | - | (790) |
| Increase in prepayments for equipment | - | (950) |
| Decrease in other long-term investment | 2,340 | 2,291 |
| Dividends received | 37,960 | 24,860 |
| Loss of control over subsidiaries | (5,434) | - |
| Net cash flows from (used in) investing activities | 52,481 | (68,566) |
| Cash flows from financing activities: | ||
| Increase in short-term borrowings | 7,280,000 | 5,017,000 |
| Decrease in short-term borrowings | (7,095,000) | (4,717,000) |
| Repayments of long-term borrowings | (8,435) | (8,278) |
| Payment of lease liabilities | (7,071) | (7,867) |
| Cash dividends paid | (33,363) | (105,553) |
| Change in non-controlling interests | (42,957) | 4,080 |
| Net cash flows from financing activities | 93,174 | 182,382 |
| Effect of exchange rate changes on cash and cash equivalents | 23,327 | (737) |
| Net decrease in cash and cash equivalents | (106,337) | (161,055) |
| Cash and cash equivalents at beginning of period | 604,092 | 765,147 |
| Cash and cash equivalents at end of period | $ 497,755 | 604,092 |
See accompanying notes to financial statements.
[Attachment 4]
Taiwan Styrene Monomer Corporation 2024 Profit or Loss Appropriation Table
Unit: NT$
| Undistributed earnings at the beginning of period | 169,839,030 | |
|---|---|---|
| Add : | Net loss of the period | (380,846,000) |
| Other comprehensive income (actuarial gains and losses of defined benefit plans) | 1,487,401 | |
| The amount of items other than net income that is included in this year's undistributed earnings | 254,391,806 | |
| Total of earnings available for distribution | 44,872,237 | |
| Undistributed earnings at the end of period | 44,872,237 |
Chairman:
General Manager:
Accounting Manager:
[Attachment 5]
Taiwan Styrene Monomer Corporation
Comparison Table of Article of Incorporation
| Amended Provisions | Provisions before Amendment | Remarks |
|---|---|---|
| Article 2 | ||
| The Company's industry classifications are as follows: | ||
| (I) C801020 Petrochemical Materials Manufacturing | ||
| (II) C801030 Precision Chemical Material Manufacturing | ||
| (III) C801990 Other Chemical Materials Manufacturing | ||
| (IV) C802990 Other Chemical Products Manufacturing | ||
| (V) D101050 Combined Heat and Power | ||
| (VI) D401010 Thermal Energy Supply | ||
| (VII) F401010 International Trade | ||
| (VIII) G801010 Warehousing | ||
| (IX) H701010 Housing and Building Development and Rental | ||
| (X) H701020 Industrial Factory Development and Rental | ||
| (XI) H703090 Real Estate Business | ||
| (XII) H703100 Real Estate Leasing | ||
| (XIII) ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval. | ||
| (XIV) F401190 Natural Gas Import Enterprise | Article 2 | |
| The Company's industry classifications are as follows: | ||
| (I) C801020 Petrochemical Materials Manufacturing | ||
| (II) C801030 Precision Chemical Material Manufacturing | ||
| (III) C801990 Other Chemical Materials Manufacturing | ||
| (IV) C802990 Other Chemical Products Manufacturing | ||
| (V) D101050 Combined Heat and Power | ||
| (VI) D401010 Thermal Energy Supply | ||
| (VII) F401010 International Trade | ||
| (VIII) G801010 Warehousing | ||
| (IX) H701010 Housing and Building Development and Rental | ||
| (X) H701020 Industrial Factory Development and Rental | ||
| (XI) H703090 Real Estate Business | ||
| (XII) H703100 Real Estate Leasing | ||
| (XIII) ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval. | Added a new business item to expand the energy trading business | |
| Article 29 | ||
| If the Company makes a profit (i.e., net profit before tax before deducting the portion set aside for employees' and directors' remuneration) within a fiscal year, 1%-5% of the profit shall be reserved as the employees' remuneration and no more than 2.5% as the directors' remuneration; in case of accumulated loss, however, a portion of the profit shall first be reserved to cover the loss. | ||
| The total amount of employees' remuneration appropriated in accordance with the provisions of preceding paragraph shall be remuneration distributed to non-executive employees no less than 20%. | Article 29 | |
| If the Company makes a profit (i.e., net profit before tax before deducting the portion set aside for employees' and directors' remuneration) within a fiscal year, 1%-5% of the profit shall be reserved as the employees' remuneration and no more than 2.5% as the directors' remuneration; in case of accumulated loss, however, a portion of the profit shall first be reserved to cover the loss. | Added this article to accordance with the regulations |
| Amended Provisions | Provisions before Amendment | Remarks |
|---|---|---|
| Article 32 | ||
| The Article of Incorporation was established on September 21, 1979. The 1^{st} amendment was made on May 26, 1980. (The 2^{nd} to the 30^{th} amendment are omitted) The 31^{th} amendment was made on June 22, 2022. The 32^{th} amendment was made on May 28, 2025. | Article 32 | |
| The Article of Incorporation was established on September 21, 1979. The 1^{st} amendment was made on May 26, 1980. (The 2^{nd} to the 30^{th} amendment are omitted) The 31^{th} amendment was made on June 22, 2022. | Added times of amendment and dates. |
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