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.