TECO Electric & Machinery : 2024 1st Quarter Consolidated Financial Statements

		1504 TECO Electric ＆ Machinery Co., Ltd.			|
		2024Q1 Consolidated Financial Report
Unit: NT$ thousands
Balance Sheet
Code		Accounting Title	2024/3/31	2023/12/31	2023/3/31
	Assets
	Current assets
1100		Cash and cash equivalents	25,132,695	23,640,536	22,410,932
1110		Current financial assets at fair value through profit or loss	27,298	27,314	38,003
1120		Current financial assets at fair value through other comprehensive income	344,570	333,178	438,349
1139		Current financial assets for hedging	3,992	0	0
1140		Current contract assets	3,724,859	3,858,752	2,609,776
1150		Notes receivable, net	781,031	868,642	814,536
1160		Notes receivable due from related parties, net	174	99	169
1170		Accounts receivable, net	10,970,744	10,488,483	10,471,243
1180		Accounts receivable due from related parties, net	193,545	194,077	275,522
1200		Other receivables	363,782	351,635	372,515
1210		Other receivables due from related parties	29,700	73,276	68,333
130X		Current inventories	11,671,382	11,631,793	12,815,232
1410		Prepayments	806,387	575,230	814,714
1470		Other current assets	451,544	437,596	514,085
11XX		Total current assets	54,501,703	52,480,611	51,643,409
	Non-current assets
1510		Non-current financial assets at fair value through profit or loss	3,478,650	3,541,679	3,827,166
1517		Non-current financial assets at fair value through other comprehensive income	27,566,379	30,577,940	40,408,821
1535		Non-current financial assets at amortised cost	95,917	15,557	72,118
1550		Investments accounted for using equity method	3,546,992	3,468,923	3,950,693
1600		Property, plant and equipment	19,881,619	20,290,504	19,992,448
1755		Right-of-use assets	7,519,656	7,473,207	6,641,494
1760		Investment property, net	3,295,404	2,785,187	2,946,988
1780		Intangible assets	4,891,453	4,832,979	4,716,809
1840		Deferred tax assets	1,242,741	1,346,615	1,235,009
1900		Other non-current assets	446,892	500,588	549,755
15XX		Total non-current assets	71,965,703	74,833,179	84,341,301
1XXX	Total assets	126,467,406	127,313,790	135,984,710
	Liabilities and equity
	Liabilities
		Current liabilities
2100		Current borrowings	1,202,704	1,357,111	1,721,422
2120		Current financial liabilities at fair value through profit or loss	310	5,850	3,544
2126		Current financial liabilities for hedging	0	5,025	0
2130		Current contract liabilities	2,205,554	2,305,861	2,449,973
2150	??	Notes payable	543,582	547,144	689,168
2160		Notes payable to related parties	335	1,088	342
2170		Accounts payable	8,389,736	8,663,722	8,322,358
2180		Accounts payable to related parties	29,680	38,189	50,565
2200		Other payables	10,757,014	6,399,778	9,294,889
2230		Current tax liabilities	1,181,121	936,600	1,112,137
2250		Current provisions	429,111	435,516	394,120
2280		Current lease liabilities	531,468	531,002	497,322
2300		Other current liabilities	2,061,941	1,313,327	1,144,794
2320		Long-term liabilities, current portion	1,227,303	484,224	352,634
2399		Other current liabilities, others	834,638	829,103	792,160
21XX		Total current liabilities	27,332,556	22,540,213	25,680,634
		Non-current liabilities
2530		Bonds payable	5,000,000	5,000,000	5,000,000
2540		Non-current portion of non-current borrowings	3,014,114	3,065,622	4,262,690
2550		Non-current provisions	242,135	310,263	284,635
2570		Deferred tax liabilities	2,767,688	2,632,812	2,578,909
2580		Non-current lease liabilities	5,357,570	5,346,519	4,458,482
2600		Other non-current liabilities	1,958,621	1,975,581	1,947,947
25XX		Total non-current liabilities	18,340,128	18,330,797	18,532,663
2XXX		Total liabilities	45,672,684	40,871,010	44,213,297
	Equity
		Equity attributable to owners of parent
		Share capital
3110		Ordinary share	21,387,966	21,387,966	21,387,966
3100		Total Share Capital	21,387,966	21,387,966	21,387,966
		Capital surplus
3210		Capital surplus, additional paid-in capital	9,003,384	9,003,384	9,003,384
3220		Capital surplus, treasury share transactions	24,388	24,388	24,388
3260		Capital surplus, changes in equity of associates and joint ventures accounted for using equity method	497,484	444,350	426,528

3270	Capital surplus, net assets from merger	139,800	139,800	139,800
3271	Capital surplus, employee share options	212	212	212
3272	Capital surplus, share options	0	0	0
3280	Capital surplus, others	17,596	17,596	17,596
3200	Total capital surplus	9,682,864	9,629,730	9,611,908
	Retained earnings
3310	Legal reserve	8,237,099	8,237,099	7,899,057
3320	Special reserve	3,640,779	3,640,779	3,640,779
3350	Unappropriated retained earnings (accumulated deficit)	18,850,332	22,400,066	18,293,698
3300	Total retained earnings	30,728,210	34,277,944	29,833,534
	Other equity interest
3410	Exchange differences on translation of foreign financial statements	(1,570,869)	(2,280,016)	(2,475,985)
3420	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	14,630,457	17,649,701	27,295,780
3450	Gains (losses) on hedging instruments	7,423	(5,025)	0
3400	Total other equity interest	13,067,011	15,364,660	24,819,795
3500	Treasury shares	(511,710)	(511,710)	(511,710)
31XX	Total equity attributable to owners of parent	74,354,341	80,148,590	85,141,493
36XX	Non-controlling interests	6,440,381	6,294,190	6,629,920
3XXX	Total equity	80,794,722	86,442,780	91,771,413
3X2X	Total liabilities and equity	126,467,406	127,313,790	135,984,710
3997	Number of share capital awaiting retirement	0	0	0
3998	Equivalent issue shares of advance receipts for ordinary share	0	0	0
3999	Number of shares in entity held by entity and by its subsidiaries	29,513,022	29,513,022	29,513,022

Unit: NT$ thousands EPS Unit: NT$
Statement of Comprehensive Income
Code	Accounting Title	2024/1/1To3/31	2023/1/1To3/31
	Operating revenue
4000	Total operating revenue	13,729,598	14,900,181
	Operating costs
5000	Total operating costs	10,172,677	11,271,380
5900	Gross profit (loss) from operations	3,556,921	3,628,801
5910	Unrealized profit (loss) from sales	11,193	9,095
5920	Realized profit (loss) on from sales	10,419	9,350
5950	Gross profit (loss) from operations	3,556,147	3,629,056
	Operating expenses
6100	Selling expenses	1,055,892	1,056,641
6200	Administrative expenses	625,726	609,749
6300	Research and development expenses	244,145	265,758
6450	Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9	(3,661)	(492)
6000	Total operating expenses	1,922,102	1,931,656
6900	Net operating income (loss)	1,634,045	1,697,400
	Non-operating income and expenses
	Interest income
7100	Total interest income	175,870	124,127
	Other income
7010	Total other income	107,612	156,288
	Other gains and losses
7020	Other gains and losses, net	(76,844)	289,372
	Finance costs
7050	Finance costs, net	90,022	60,591
	Share of profit (loss) of associates and joint ventures accounted for using equity method
7060	Share of profit (loss) of associates and joint ventures accounted for using equity method, net	19,220	(19,602)
7000	Total non-operating income and expenses	135,836	489,594
7900	Profit (loss) from continuing operations before tax	1,769,881	2,186,994
	Tax expense (income)
7950	Total tax expense (income)	482,924	443,987
8000	Profit (loss) from continuing operations	1,286,957	1,743,007
8200	Profit (loss)	1,286,957	1,743,007
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Gains (losses) on remeasurements of defined benefit plans	(3,524)	11,786
8316	Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	(3,031,891)	6,866,705
8320	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not	(177)	1,587
be reclassified to profit or loss
8310	Components of other comprehensive income that will not be reclassified to profit or loss	(3,035,592)	6,880,078
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation	875,698	(45,336)
8368	Gains (losses) on hedging instrument	12,448	0
8399	Income tax related to components of other comprehensive income that will be reclassified to profit or loss	147,751	(21,268)
8360	Components of other comprehensive income that will be reclassified to profit or loss	740,395	(24,068)
8300	Total other comprehensive income	(2,295,197)	6,856,010
8500	Total comprehensive income	(1,008,240)	8,599,017
	Profit (loss), attributable to:
8610	Profit (loss), attributable to owners of parent	1,159,139	1,634,863

8620	Profit (loss), attributable to non-controlling interests	127,818	108,144
	Comprehensive income attributable to:
8710	Comprehensive income, attributable to owners of parent	(1,142,030)	8,288,668
8720	Comprehensive income, attributable to non-controlling interests	133,790	310,349
	Basic earnings per share
9710	Basic earnings (loss) per share from continuing operations	0.55	0.78
9750	Total basic earnings per share	0.55	0.78
	Diluted earnings per share
9810	Diluted earnings (loss) per share from continuing operations	0.55	0.78
9850	Total diluted earnings per share	0.55	0.78

Unit: NT$ thousands

Statements of Cash Flows

Code	Accounting Title	2024/1/1To3/31	2023/1/1To3/31
	Cash flows from (used in) operating activities, indirect method
A00010	Profit (loss) from continuing operations before tax	1,769,881	2,186,994
A10000	Profit (loss) before tax	1,769,881	2,186,994
	Adjustments
	Adjustments to reconcile profit (loss)
A20100	Depreciation expense	489,952	472,257
A20300	Expected credit loss (gain) / Provision (reversal of provision) for bad debt expense	(3,661)	(492)
A20400	Net loss (gain) on financial assets or liabilities at fair value through profit or loss	(10,551)	(556,350)
A20900	Interest expense	90,022	60,591
A21200	Interest income	(175,870)	(124,127)
A21300	Dividend income	(6,641)	(23,690)
A22300	Share of loss (profit) of associates and joint ventures accounted for using equity method	(19,220)	19,602
A22500	Loss (gain) on disposal of property, plan and equipment	(52,840)	6,607
A29900	Other adjustments to reconcile profit (loss)	82,275	45,126
A20010	Total adjustments to reconcile profit (loss)	393,466	(100,476)
	Changes in operating assets and liabilities
	Changes in operating assets
A31125	Decrease (increase) in contract assets	133,893	(293,712)
A31130	Decrease (increase) in notes receivable	87,464	225,239
A31140	Decrease (increase) in notes receivable due from related parties	(75)	(67,987)
A31150	Decrease (increase) in accounts receivable	(481,865)	(416,577)
A31160	Decrease (increase) in accounts receivable due from related parties	16,066	26,558
A31180	Decrease (increase) in other receivable	(12,147)	(46,374)
A31190	Decrease (increase) in other receivable due from related parties	43,576	18,594
A31200	Adjustments for decrease (increase) in inventories	(121,864)	34,929
A31230	Decrease (increase) in prepayments	(231,157)	(318,296)
A31240	Adjustments for decrease (increase) in other current assets	(52,248)	(14,050)
A31000	Total changes in operating assets	(618,357)	(851,676)
	Changes in operating liabilities
A32125	Increase (decrease) in contract liabilities	(100,307)	130,784
A32130	Increase (decrease) in notes payable	(3,562)	(95,189)
A32140	Increase (decrease) in notes payable to related parties	(753)	(92)
A32150	Increase (decrease) in accounts payable	(273,986)	(754,690)
A32160	Increase (decrease) in accounts payable to related parties	(8,509)	1,809
A32180	Increase (decrease) in other payable	(343,259)	(40,745)
A32200	Increase (decrease) in provisions	(74,533)	220,144
A32230	Adjustments for increase (decrease) in other current liabilities	5,535	(49,045)
A32990	Increase (decrease) in other operating liabilities	(16,705)	(51,447)
A32000	Total changes in operating liabilities	(816,079)	(638,471)
A30000	Total changes in operating assets and liabilities	(1,434,436)	(1,490,147)
A20000	Total adjustments	(1,040,970)	(1,590,623)
A33000	Cash inflow (outflow) generated from operations	728,911	596,371
A33100	Interest received	175,870	124,127
A33300	Interest paid	(62,375)	(43,647)
A33500	Income taxes refund (paid)	(147,404)	(53,136)
AAAA	Net cash flows from (used in) operating activities	695,002	623,715
	Cash flows from (used in) investing activities
B00010	Acquisition of financial assets at fair value through other comprehensive income	(29,988)	0
B00020	Proceeds from disposal of financial assets at fair value through other comprehensive income	9,798	648,966
B00050	Proceeds from disposal of financial assets at amortised cost	(80,360)	43,791
B00100	Acquisition of financial assets at fair value through profit or loss	0	(6,193)
B00200	Proceeds from disposal of financial assets at fair value through profit or loss	68,056	0
B02700	Acquisition of property, plant and equipment	(259,804)	(852,601)
B05400	Acquisition of investment properties	(178)	0
B06600	Decrease in other financial assets	38,300	143,104
B06700	Increase in other non-current assets	0	(17,956)
B06800	Decrease in other non-current assets	53,696	0
B07600	Dividends received	6,641	23,690
B09900	Other investing activities	0	(29,425)

	BBBB	Net cash flows from (used in) investing activities										(193,839)			(46,624)
		Cash flows from (used in) financing activities
C00100	Increase in short-term loans													(154,407)			(29,922)
C01700	Repayments of long-term debt												691,571			806,037
C04020	Payments of lease liabilities													(176,797)			(169,525)
	CCCC	Net cash flows from (used in) financing activities										360,367			606,590
	DDDD	Effect of exchange rate changes on cash and cash equivalents									630,629			(148,149)
	EEEE	Net increase (decrease) in cash and cash equivalents										1,492,159			1,035,532
E00100	Cash and cash equivalents at beginning of period										23,640,536			21,375,400
E00200	Cash and cash equivalents at end of period										25,132,695			22,410,932
E00210	Cash and cash equivalents reported in the statement of financial position								25,132,695			22,410,932
Unit: NT$ thousands
Statements of Change in Equity
			3110	3100		3200	3310		3320	3350	3300	3410	3420	3450	3400	3500	31XX	36XX	3XXX
													Unrealised
												Exchange	gains (losses)					Total
										Unappropriated		differences	on financial
											Gains	Total		equity
				Total						retained	Total	on	assets		Non-
			Ordinary		Capital	Legal		Special	(losses) on	other	Treasury	attributable	Total
			share			earnings	retained	translation	measured at	controlling
			share		surplus	reserve		reserve	hedging	equity	shares	to owners	equity
				capital						(accumulated	earnings	of foreign	fair value	instruments	interest		of parent	interests
										deficit)		financial	through other
												statements	comprehensive
													income
A1	Equity at
beginning of	21,387,966	21,387,966		9,629,730	8,237,099		3,640,779	22,400,066	34,277,944	(2,280,016)	17,649,701	(5,025)	15,364,660	(511,710)	80,148,590	6,294,190	86,442,780
	period
B5	Cash
dividends of	0	0		0	0		0	(4,705,353)	(4,705,353)	0	0	0	0	0	(4,705,353)	0	(4,705,353)
	ordinary share
	Changes
	in equity of
C7	associates and
joint ventures	0	0		53,134	0		0	0	0	0	0	0	0	0	53,134	0	53,134
	accounted for
	using equity
	method
D1	Profit (loss)	0	0		0	0		0	1,159,139	1,159,139	0	0	0	0	0	1,159,139	127,818	1,286,957
D3	Other
comprehensive	0	0		0	0		0	(3,534)	(3,534)	709,147	(3,019,230)	12,448	(2,297,635)	0	(2,301,169)	5,972	(2,295,197)
	income
D5	Total
comprehensive	0	0		0	0		0	1,155,605	1,155,605	709,147	(3,019,230)	12,448	(2,297,635)	0	(1,142,030)	133,790	(1,008,240)
	income
O1	Changes in
non-controlling	0	0		0	0		0	0	0	0	0	0	0	0	0	12,401	12,401
	interests
	Disposal of
	investments in
	equity
Q1	instruments
designated at	0	0		0	0		0	14	14	0	(14)	0	(14)	0	0	0	0
	fair value
	through other
	comprehensive
	income
	Total
Y1	increase		0	0		53,134	0		0	(3,549,734)	(3,549,734)	709,147	(3,019,244)	12,448	(2,297,649)	0	(5,794,249)	146,191	(5,648,058)
	(decrease) in
	equity
Z1	Equity at	21,387,966	21,387,966		9,682,864	8,237,099		3,640,779	18,850,332	30,728,210	(1,570,869)	14,630,457	7,423	13,067,011	(511,710)	74,354,341	6,440,381	80,794,722
end of period
Unit: NT$ thousands
Last year's Statements of Change in Equity
			3110	3100		3200	3310		3320	3350	3300	3410	3420	3450	3400	3500	31XX	36XX	3XXX
													Unrealised
												Exchange	gains (losses)					Total
										Unappropriated		differences	on financial
											Gains	Total		equity
				Total						retained	Total	on	assets		Non-
			Ordinary		Capital	Legal		Special	(losses) on	other	Treasury	attributable	Total
			share			earnings	retained	translation	measured at	controlling
			share		surplus	reserve		reserve	hedging	equity	shares	to owners	equity
				capital						(accumulated	earnings	of foreign	fair value	instruments	interest		of parent	interests
										deficit)		financial	through other
												statements	comprehensive
													income
A1	Equity at
beginning of	21,387,966	21,387,966		9,575,822	7,899,057		3,640,779	19,680,601	31,220,437	(2,453,451)	20,805,870	0	18,352,419	(511,710)	80,024,934	6,293,565	86,318,499
	period
B5	Cash
dividends of	0	0		0	0		0	(3,208,195)	(3,208,195)	0	0	0	0	0	(3,208,195)	0	(3,208,195)
	ordinary share
	Changes
	in equity of
C7	associates and
joint ventures	0	0		36,086	0		0	0	0	0	0	0	0	0	36,086	0	36,086
	accounted for
	using equity
	method
D1	Profit (loss)	0	0		0	0		0	1,634,863	1,634,863	0	0	0	0	0	1,634,863	108,144	1,743,007
D3	Other
comprehensive	0	0		0	0		0	11,786	11,786	(22,534)	6,664,553	0	6,642,019	0	6,653,805	202,205	6,856,010
	income
D5	Total
comprehensive	0	0		0	0		0	1,646,649	1,646,649	(22,534)	6,664,553	0	6,642,019	0	8,288,668	310,349	8,599,017
	income
O1	Changes in	0	0		0	0		0	0	0	0	0	0	0	0	0	26,006	26,006
	non-controlling

	interests
	Disposal of
	investments in
	equity
Q1	instruments
designated at	0	0	0	0	0	174,643	174,643	0	(174,643)	0	(174,643)	0	0	0	0
	fair value
	through other
	comprehensive
	income
	Total
Y1	increase	0	0	36,086	0	0	(1,386,903)	(1,386,903)	(22,534)	6,489,910	0	6,467,376	0	5,116,559	336,355	5,452,914
	(decrease) in
	equity
Z1	Equity at	21,387,966	21,387,966	9,611,908	7,899,057	3,640,779	18,293,698	29,833,534	(2,475,985)	27,295,780	0	24,819,795	(511,710)	85,141,493	6,629,920	91,771,413
end of period

Unit: NT$ thousands

Independent Auditors' (Review) Report

Name of CPA Firm	PricewaterhouseCoopers
Name of CPA 1	Hsu, Sheng-Chung
Name of CPA 2	Tu, Chan-Yuan
Date of Audit (Review)	2024-05-14
Type of Report
Review Report	Y
Type of Opinion
Qualified Opinion or Conclusion	Y
Situations for not Issuing a Standard Unqualified Opinion or
Conclusion
Financial statements of non-major subsidiary or
investment accounted for using equity method have not been	Y
audited or reviewed
Description of Matter Emphasized
Description of Other Matter
	To TECO Electric ＆ Machinery Co., Ltd.
	Introduction
	We have reviewed the accompanying consolidated balance sheets of Teco Electric ＆
	Machinery Co., Ltd. and subsidiaries (the "Group") as at March 31, 2024 and 2023, and
	the related consolidated statements of comprehensive income, of changes in equity and of
	cash flows for the three-month periods ended March 31, 2024 and 2023, and notes to the
	consolidated financial statements, including a summary of material accounting policies.
	Management is responsible for the preparation and fair presentation of these 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" that came into effect as endorsed by the Financial
	Supervisory Commission. Our responsibility is to express a conclusion on these
	consolidated financial statements based on our reviews.
	Scope of Review
	Except as explained in the following paragraph, we conducted our reviews in accordance
	with the Standard on Review Engagements 2410, "Review of Financial Information
	Performed by the Independent Auditor of the Entity" of the Republic of China. 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
	As described in Notes 4(3) and 6(7) to the consolidated financial statements, the financial
	statements of certain consolidated subsidiaries and investees accounted for under the
	equity method were not reviewed by independent auditors. Those statements reflect total
	assets (including investments accounted for under the equity method) of NT$23,723,242
	thousand and NT$24,454,204 thousand, constituting 19% and 18% of consolidated total
	assets as of March 31, 2024 and 2023, respectively, total liabilities (including credit
	balance of investments accounted for under the equity method) of NT$4,789,774 thousand
	and NT$4,606,282 thousand, both constituting 10% of consolidated total liabilities as of
Content of Independent Auditors Report	March 31, 2024 and 2023, respectively, and total comprehensive income (including share
of profit or loss and share of other comprehensive income of associates and joint ventures
	accounted for under the equity method) of NT$125,571 thousand and NT$177,174
	thousand, constituting (12%) and 2% of the consolidated total comprehensive income for
	the three-month periods ended March 31, 2023 and 2022, respectively. These amounts and
	the related information disclosed in Note 13 were based on the unreviewed financial
	statements of such consolidated subsidiaries and investee companies.
	Qualified Conclusion
	Except for the adjustments to the consolidated financial statements, if any, as might have
	been determined to be necessary had the financial statements of certain consolidated
	subsidiaries and investees accounted for under the equity method been reviewed by
	independent auditors, that we might have become aware of had it not been for the situation
	described above, based on our reviews, nothing has come to our attention that causes 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 at March 31,
	2024 and 2023, and of its consolidated financial performance and its consolidated cash
	flows for the three-month periods ended March 31, 2024 and 2023 in accordance with
	"Regulations Governing the Preparation of Financial Reports by Securities Issuers" and
	International Accounting Standard 34,"Interim Financial Reporting" that came into effect
	as endorsed by the Financial Supervisory Commission.

Hsu, Sheng-Chung

Tu, Chan-Yuan

For and on behalf of PricewaterhouseCoopers, Taiwan

May 14, 2024

Ending balance of assets of subsidiaries whose financial statements were audited or reviewed by other independent accountants

Total year-to-date revenues of subsidiaries whose financial statements were audited or reviewed by other independent accountants

Ending balance of investments accounted for using equity method whose financial statements were audited or reviewed by other independent accountants

Share of year-to-date profit (loss) of associates and joint ventures accounted for using equity method which audited by other independent accountants

Ending balance of assets of subsidiaries whose financial statements were on unaudited or unreviewed

Year-to-date comprehensive income of subsidiaries whose financial statements were unaudited or unreviewed

Ending balance of investments accounted for using equity method whose financial statements were unaudited or unreviewed

Share of year-to-date profit (loss) of associates and joint ventures accounted for using equity method whose financial statements were unaudited or unreviewed

0

0

0

0

23,723,242

125,571

2,475,667

28,446