Chroma ATE Inc. and Subsidiaries
Consolidated Financial Statements for the
Nine Months Ended September 30, 2021 and 2020 and Independent Auditors' Review Report
勤業眾信聯合會計師事務所
110016 台北市信義區松仁路 100 號 20 樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110016, Taiwan
Tel : + 886 (2) 2725 - 9988
Fax: + 886 (2) 4051 - 6888
www.deloitte.com.tw
INDEPENDENT AUDITORS' REVIEW REPORT
The Board of Directors and Shareholders
Chroma ATE Inc.
Introduction
We have reviewed the accompanying consolidated balance sheets of Chroma ATE Inc. (the "Corporation") and its subsidiaries (collectively, the "Group") as of September 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.
Scope of Review
Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 "Review of Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Basis for Qualified Conclusion
The financial statements of some non-significant subsidiaries included in the consolidated financial statements were not reviewed. As of September 30, 2021 and 2020, the combined total assets of these non-significant subsidiaries were NT$5,488,154 thousand and NT$5,714,215 thousand, respectively, representing 19.29% and 21.23%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$2,226,834 thousand and NT$2,535,478 thousand, respectively, representing 21.65% and 21.84%, respectively, of the consolidated total liabilities. The amounts of unreviewed comprehensive income (loss) for the three months ended September 30, 2021 and 2020 were NT$186,739 thousand and NT$(104,557) thousand, respectively, representing 28.56% and (16.50%), respectively, of the consolidated total comprehensive income; and the amounts of unreviewed comprehensive income for the nine months ended September 30, 2021 and 2020 were NT$279,735 thousand and NT$82,287 thousand, respectively, representing 7.71% and 5.00%, respectively, of the consolidated total comprehensive income. In addition, as disclosed in Note 13 to the consolidated financial statements, the carrying values of investments accounted for using the equity method were NT$3,035,355 thousand and
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NT$2,930,931 thousand, representing 10.67% and 10.89% of the consolidated total assets as of September 30, 2021 and 2020, respectively; the related shares of comprehensive income of associates and joint ventures for the three months ended September 30, 2021 and 2020 were NT$77,913 thousand and NT$50,658 thousand, respectively, representing 11.92% and 7,99%, respectively, of the consolidated total comprehensive income; and the related shares of comprehensive income of associates and joint ventures for the nine months ended September 30, 2021 and 2020 were NT$149,775 thousand and NT$65,055 thousand, respectively, representing 4.13% and 3.95%, respectively, of the consolidated total comprehensive income. These investment amounts were calculated and disclosed on the basis of the unreviewed financial statements of the investees as of and for the same reporting periods as those of the Corporation. Further, as disclosed in Note 34 to the consolidated financial statements, other information on the Corporation's non-significant subsidiaries and other investees accounted for using the equity method was disclosed on the basis of the unreviewed financial statements as of and for the same reporting periods as those of the Corporation.
Qualified Conclusion
Based on our reviews, with the exception of the matter described in the preceding paragraph, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2021 and 2020, its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
The engagement partners on the reviews resulting in this independent auditors' review report are Wen-Chin Lin and Chien-Liang Liu
Deloitte & Touche
Taipei, Taiwan
Republic of China
October 28, 2021
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.
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CHROMA ATE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)
September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||||||
(Reviewed) | (Audited) | (Reviewed) | |||||||||||||||||||||
ASSETS | Amount | % | Amount | % | Amount | % | |||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||||
Cash and cash equivalents (Note 6) | $ | 2,850,276 | 10 | $ | 2,896,645 | 10 | $ | 2,663,601 | 10 | ||||||||||||||
Financial assets at fair value through profit or loss - current (Note 7) | 518,024 | 2 | 509,015 | 2 | 447,541 | 2 | |||||||||||||||||
Financial assets at amortized cost - current (Notes 9 and 30) | 1,300,176 | 4 | 1,036,691 | 4 | 960,587 | 4 | |||||||||||||||||
Contract assets - current (Note 22) | 793,694 | 3 | 1,278,936 | 4 | 1,267,740 | 5 | |||||||||||||||||
Notes receivable (Note 10) | 113,835 | - | 127,042 | - | 43,015 | - | |||||||||||||||||
Trade receivables (Note 10) | 4,211,126 | 15 | 4,247,500 | 15 | 4,316,825 | 16 | |||||||||||||||||
Trade receivables - related parties (Notes 10 and 29) | 22,512 | - | 19,340 | - | 28,055 | - | |||||||||||||||||
Inventories (Note 11) | 3,755,306 | 13 | 3,028,457 | 11 | 3,033,664 | 11 | |||||||||||||||||
Prepayments | 259,182 | 1 | 197,038 | 1 | 332,988 | 1 | |||||||||||||||||
Other current assets (Note 29) | 166,567 | 1 | 187,175 | 1 | 151,118 | - | |||||||||||||||||
Total current assets | 13,990,698 | 49 | 13,527,839 | 48 | 13,245,134 | 49 | |||||||||||||||||
NON-CURRENT ASSETS | |||||||||||||||||||||||
Financial assets at fair value through profit or loss - non-current (Note 7) | 4,603 | - | 4,646 | - | 4,649 | - | |||||||||||||||||
Financial assets at fair value through other comprehensive income - non-current (Note 8) | 1,053,887 | 4 | 862,898 | 3 | 657,079 | 2 | |||||||||||||||||
Investments accounted for using the equity method (Note 13) | 3,035,355 | 11 | 3,139,227 | 11 | 2,930,931 | 11 | |||||||||||||||||
Property, plant and equipment (Notes 14, 29 and 30) | 6,067,480 | 21 | 3,156,634 | 11 | 3,138,387 | 12 | |||||||||||||||||
Right-of-use assets (Note 15) | 287,036 | 1 | 144,921 | 1 | 155,192 | 1 | |||||||||||||||||
Investment properties (Note 16) | 3,137,187 | 11 | 3,137,187 | 11 | 3,137,187 | 12 | |||||||||||||||||
Goodwill (Note 17) | 226,185 | 1 | 228,002 | 1 | 223,644 | 1 | |||||||||||||||||
Other intangible assets | 88,780 | - | 55,578 | - | 54,008 | - | |||||||||||||||||
Deferred tax assets | 337,857 | 1 | 314,987 | 1 | 315,829 | 1 | |||||||||||||||||
Prepayments for land and equipment | 127,272 | 1 | 3,463,185 | 13 | 2,941,607 | 11 | |||||||||||||||||
Refundable deposits | 21,273 | - | 13,693 | - | 13,422 | - | |||||||||||||||||
Other non-current assets | 79,939 | - | 80,086 | - | 101,663 | - | |||||||||||||||||
Total non-current assets | 14,466,854 | 51 | 14,601,044 | 52 | 13,673,598 | 51 | |||||||||||||||||
TOTAL | $ | 28,457,552 | 100 | $ | 28,128,883 | 100 | $ | 26,918,732 | 100 | ||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||||
Short-term borrowings (Notes 18 and 30) | $ | 2,527,456 | 9 | $ | 2,554,260 | 9 | $ | 3,148,520 | 12 | ||||||||||||||
Contract liabilities - current (Notes 22 and 29) | 480,474 | 2 | 765,682 | 3 | 641,356 | 3 | |||||||||||||||||
Notes payable | 80,625 | - | 35,933 | - | 13,716 | - | |||||||||||||||||
Notes payable - related parties (Note 29) | 3,955 | - | 4,570 | - | 201 | - | |||||||||||||||||
Trade payables | 2,605,749 | 9 | 2,637,070 | 10 | 2,359,010 | 9 | |||||||||||||||||
Trade payables - related parties (Note 29) | 3,637 | - | 11,353 | - | 3,206 | - | |||||||||||||||||
Other payables (Notes 19 and 29) | 1,062,131 | 4 | 1,225,623 | 4 | 1,116,060 | 4 | |||||||||||||||||
Current tax liabilities | 341,032 | 1 | 348,441 | 1 | 273,596 | 1 | |||||||||||||||||
Lease liabilities - current (Notes 15 and 29) | 90,812 | - | 55,247 | - | 60,477 | - | |||||||||||||||||
Current portion of long-term borrowings (Notes 18 and 30) | 213,429 | 1 | 633,456 | 2 | 13,880 | - | |||||||||||||||||
Other current liabilities | 147,810 | - | 153,317 | 1 | 73,324 | - | |||||||||||||||||
Total current liabilities | 7,557,110 | 26 | 8,424,952 | 30 | 7,703,346 | 29 | |||||||||||||||||
NON-CURRENT LIABILITIES | |||||||||||||||||||||||
Long-term borrowings (Notes 18 and 30) | 1,596,094 | 6 | 2,404,616 | 9 | 3,075,963 | 11 | |||||||||||||||||
Deferred tax liabilities | 711,638 | 3 | 621,111 | 2 | 561,034 | 2 | |||||||||||||||||
Lease liabilities - non-current (Notes 15 and 29) | 236,801 | 1 | 92,345 | - | 97,326 | - | |||||||||||||||||
Net defined benefit liabilities (Note 20) | 141,533 | - | 156,280 | 1 | 153,936 | 1 | |||||||||||||||||
Guarantee deposits received | 43,050 | - | 40,886 | - | 20,000 | - | |||||||||||||||||
Total non-current liabilities | 2,729,116 | 10 | 3,315,238 | 12 | 3,908,259 | 14 | |||||||||||||||||
Total liabilities | 10,286,226 | 36 | 11,740,190 | 42 | 11,611,605 | 43 | |||||||||||||||||
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 21) | |||||||||||||||||||||||
Ordinary share capital | 4,216,315 | 15 | 4,212,945 | 15 | 4,207,484 | 16 | |||||||||||||||||
Advance receipts for share capital | 7,163 | - | - | - | 20,662 | - | |||||||||||||||||
Capital surplus | 4,062,302 | 14 | 4,036,875 | 14 | 3,735,931 | 14 | |||||||||||||||||
Retained earnings | |||||||||||||||||||||||
Legal reserve | 2,824,310 | 10 | 2,592,487 | 9 | 2,592,487 | 9 | |||||||||||||||||
Special reserve | 86,888 | - | 176,128 | 1 | 176,128 | 1 | |||||||||||||||||
Unappropriated earnings | 6,638,423 | 24 | 5,160,575 | 18 | 4,479,585 | 17 | |||||||||||||||||
Total retained earnings | 9,549,621 | 34 | 7,929,190 | 28 | 7,248,200 | 27 | |||||||||||||||||
Other equity | (35,030) | - | (82,101) | - | (192,211) | (1) | |||||||||||||||||
Treasury shares | (33,686) | - | (33,686) | - | (33,745) | - | |||||||||||||||||
Total equity attributable to owners of the Corporation | 17,766,685 | 63 | 16,063,223 | 57 | 14,986,321 | 56 | |||||||||||||||||
NON-CONTROLLING INTERESTS | 404,641 | 1 | 325,470 | 1 | 320,806 | 1 | |||||||||||||||||
Total equity | 18,171,326 | 64 | 16,388,693 | 58 | 15,307,127 | 57 | |||||||||||||||||
TOTAL | $ | 28,457,552 | 100 | $ | 28,128,883 | 100 | $ | 26,918,732 | 100 | ||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors' review report dated October 28, 2021)
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CHROMA ATE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||
NET OPERATING REVENUE | ||||||||||||||||||||||||
(Notes 22 and 29) | $ 4,275,744 | 100 | $ 4,155,091 | 100 | $ 12,994,408 | 100 | $ 11,354,608 | 100 | ||||||||||||||||
OPERATING COSTS (Notes 11, | ||||||||||||||||||||||||
23 and 29) | 2,131,562 | 50 | 2,151,414 | 52 | 6,678,045 | 51 | 5,742,102 | 51 | ||||||||||||||||
GROSS PROFIT | 2,144,182 | 50 | 2,003,677 | 48 | 6,316,363 | 49 | 5,612,506 | 49 | ||||||||||||||||
UNREALIZED GAIN ON | ||||||||||||||||||||||||
TRANSACTIONS WITH | ||||||||||||||||||||||||
ASSOCIATES AND JOINT | ||||||||||||||||||||||||
VENTURES | - | - | (37) | - | - | - | - | - | ||||||||||||||||
REALIZED GAIN ON | ||||||||||||||||||||||||
TRANSACTIONS WITH | ||||||||||||||||||||||||
ASSOCIATES AND JOINT | ||||||||||||||||||||||||
VENTURES | 13 | - | - | - | 149 | - | 3 | - | ||||||||||||||||
REALIZED GROSS PROFIT | 2,144,195 | 50 | 2,003,640 | 48 | 6,316,512 | 49 | 5,612,509 | 49 | ||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
(Notes 10, 23 and 29) | ||||||||||||||||||||||||
Selling and marketing expenses | 568,997 | 13 | 507,730 | 12 | 1,693,671 | 13 | 1,519,826 | 14 | ||||||||||||||||
General and administrative | ||||||||||||||||||||||||
expenses | 339,506 | 8 | 294,279 | 7 | 899,713 | 7 | 831,475 | 7 | ||||||||||||||||
Research and development | ||||||||||||||||||||||||
expenses | 357,378 | 9 | 345,694 | 8 | 1,103,778 | 9 | 989,721 | 9 | ||||||||||||||||
Expected credit loss | 13,427 | - | 146,698 | 4 | 275,552 | 2 | 243,688 | 2 | ||||||||||||||||
Total operating expenses | 1,279,308 | 30 | 1,294,401 | 31 | 3,972,714 | 31 | 3,584,710 | 32 | ||||||||||||||||
PROFIT FROM OPERATIONS | 864,887 | 20 | 709,239 | 17 | 2,343,798 | 18 | 2,027,799 | 17 | ||||||||||||||||
NON-OPERATING INCOME | ||||||||||||||||||||||||
AND EXPENSES | ||||||||||||||||||||||||
Finance costs (Note 23) | (11,567) | - | (12,574) | - | (33,961) | - | (43,900) | - | ||||||||||||||||
Share of profit of associates | ||||||||||||||||||||||||
and joint ventures (Note 13) | 81,632 | 2 | 34,592 | 1 | 209,511 | 2 | 84,675 | 1 | ||||||||||||||||
Interest income | 7,210 | - | 3,265 | - | 14,896 | - | 10,290 | - | ||||||||||||||||
Dividend income | 17,930 | - | 15,232 | - | 71,771 | - | 19,402 | - | ||||||||||||||||
Other income (Note 29) | 37,234 | 1 | 25,006 | 1 | 98,532 | 1 | 89,414 | 1 | ||||||||||||||||
Gain on disposal of property, | ||||||||||||||||||||||||
plant and equipment, net | 1,936 | - | 439 | - | 1,583,061 | 12 | 4,819 | - | ||||||||||||||||
Gain on disposal of equity | ||||||||||||||||||||||||
investments | - | - | - | - | - | - | 480 | - | ||||||||||||||||
Gain on rights transferred of | ||||||||||||||||||||||||
sale and leaseback | - | - | - | - | 154,510 | 1 | - | - | ||||||||||||||||
Gain on lease modification | 579 | - | - | - | 586 | - | - | - | ||||||||||||||||
Net foreign exchange (loss) | ||||||||||||||||||||||||
gain (Note 33) | 21,858 | 1 | (20,870) | (1) | (45,880) | - | (52,644) | (1) | ||||||||||||||||
Gain (loss) on financial assets | ||||||||||||||||||||||||
at fair value through profit or | ||||||||||||||||||||||||
loss, net | (4,155) | - | (6,919) | - | 36 | - | (7,522) | - | ||||||||||||||||
Other expenses | (4,503) | - | (873) | - | (6,909) | - | (2,276) | - | ||||||||||||||||
Total non-operating | ||||||||||||||||||||||||
income and expenses | 148,154 | 4 | 37,298 | 1 | 2,046,153 | 16 | 102,738 | 1 | ||||||||||||||||
(Continued) |
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Chroma Ate Inc. published this content on 01 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2021 08:31:04 UTC.