DELTA ELECTRONICS, INC. AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS' REVIEW REPORT

MARCH 31, 2022 AND 2021

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For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

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REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Board of Directors and Shareholders of Delta Electronics, Inc.

Introduction

We have reviewed the accompanying consolidated balance sheets of Delta Electronics, Inc. and its subsidiaries (the "Group") as at March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and International Accounting Standard (IAS) No. 34, "Interim Financial Reporting" as endorsed by the Financial Supervisory Commission (FSC). Our responsibility is to express a conclusion on these interim financial statements based on our reviews and the review reports of other independent auditors.

Scope of review

Except as explained in the Basis for Qualified Conclusion, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, "Review of Financial Statements". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As explained in Notes 4(3)B and 6(8), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under the equity method were not reviewed by independent auditors. Those statements reflect total assets of NT$25,978,618 thousand and NT$19,715,948 thousand, constituting 6.94% and 5.73% of the consolidated total assets, and total liabilities of NT$7,784,989 thousand and NT$5,872,717 thousand, constituting 4.47% and 3.72% of the consolidated total liabilities as at March 31, 2022 and 2021, respectively, and total comprehensive income (loss) of NT$354,899 thousand and (NT$251,954) thousand, constituting 2.55% and (2.91%) of the consolidated total comprehensive income for the three months then ended, respectively.

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Qualified Conclusion

Based on our reviews and the review reports of other independent auditors as described in the Other Matter-Review Reports By Other Independent Auditors section of our report, except for the possible effects of the matter described in the Basis for Qualified Conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying interim financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2022 and 2021, and of its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the "Rules Governing the Preparation of Financial Reports by Securities Issuers" and IAS No. 34, "Interim Financial Reporting" as endorsed by the FSC.

Other Matter-Review Reports By Other Independent Auditors

We did not review the financial statements of certain subsidiaries which were reviewed by other independent auditors. Those statements reflect total assets amounting to NT$58,323,953 thousand and NT$55,079,205 thousand, constituting 15.59% and 16.02% of the consolidated total assets as at March 31, 2022 and 2021, respectively, and total operating revenues amounting to NT$18,367,878 thousand and NT$15,475,120 thousand, constituting 22.25% and 21.35% of the consolidated total operating revenues for the three months then ended, respectively.

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The consolidated financial statements of Delta Electronics, Inc. and subsidiaries as at and for the three months ended March 31, 2022 expressed in US dollars are presented solely for the convenience of the reader and were translated from the financial statements expressed in New Taiwan dollars using the exchange rate of $28.625 to US$1.00 at March 31, 2022. This basis of translation is not in accordance with International Financial Reporting Standards, International Accounting Standards, and relevant interpretations and interpretative bulletins that are ratified by the FSC.

Hsiao, Chun-Yuan

Chou, Chien-Hung

for and on behalf of PricewaterhouseCoopers, Taiwan

April 28, 2022

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

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

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

(EXPRESSED IN THOUSANDS OF DOLLARS)

(THE BALANCE SHEETS AS OF MARCH 31, 2022 AND 2021 ARE UNAUDITED)

US Dollars

New Taiwan Dollars

Assets

Notes

March 31, 2022

March 31, 2022

December 31, 2021

March 31, 2021

Current assets

Cash and cash equivalents

6(1)

$

1,857,323

$

53,165,861

$

49,855,053

$

60,858,095

Financial assets at fair value through

6(2)

profit or loss - current

49,071

1,404,647

1,085,729

932,925

Financial assets at amortised cost -

8

current

11,677

334,253

327,238

496,395

Contract assets - current

6(20)

109,379

3,130,988

3,589,313

2,321,918

Notes receivable, net

6(5)

104,754

2,998,591

3,420,633

3,480,763

Accounts receivable, net

6(5)

2,376,008

68,013,252

67,436,377

57,001,586

Accounts receivable - related parties

7

724

20,732

27,831

28,527

Other receivables

6(6) and 7

92,034

2,634,460

1,815,370

1,799,154

Current income tax assets

17,922

513,015

349,207

344,209

Inventories

6(7)

2,347,187

67,188,249

66,107,351

49,144,171

Prepayments

77,615

2,221,718

2,450,269

2,274,039

Non-current assets held for sale

6(9)

-

-

320,551

-

Other current assets

2,873

82,226

93,272

76,990

Total current assets

7,046,567

201,707,992

196,878,194

178,758,772

Non-current assets

Financial assets at fair value through

6(2)

profit or loss - non-current

107,533

3,078,138

3,351,798

3,247,321

Financial assets at fair value through

6(3)

other comprehensive income -

non-current

56,831

1,626,801

1,587,843

1,962,860

Contract assets - non-current

6(20)

17,152

490,986

462,941

477,014

Investments accounted for under the

6(8)

equity method

2,335

66,847

63,731

787,406

Property, plant and equipment

6(9) and 8

2,764,843

79,143,617

76,607,285

71,097,325

Right-of-use assets

6(10)

109,658

3,138,962

3,006,960

2,956,287

Investment property, net

492

14,070

14,070

14,070

Intangible assets

6(11)

2,625,782

75,163,017

73,609,564

75,992,081

Deferred income tax assets

259,909

7,439,889

7,177,747

6,395,473

Other non-current assets

6(5)(12)

and 8

81,154

2,322,996

2,352,477

2,112,162

Total non-current assets

6,025,689

172,485,323

168,234,116

165,041,999

Total assets

$

13,072,256

$

374,193,315

$

365,112,310

$

343,800,771

(Continued)

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Delta Electronics Inc. published this content on 24 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2022 08:45:06 UTC.