VIA Technologies : Financial Document

VIA Technologies, Inc. and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2023 and 2022

VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

			March 31, 2023						December 31, 2022				March 31, 2022
			(Reviewed)						(Audited)						(Reviewed)
ASSETS			Amount	%					Amount	%					Amount	%
CURRENT ASSETS
Cash and cash equivalents	$	11,986,907		47		$	11,850,296		49	$	11,917,604		53
Financial assets at fair value through profit or loss - current			414,210		2					382,613		2					369,999	2
Financial assets at amortized cost - current			293,389		1					103,071		-					117,250	-
Notes and accounts receivable			373,791		1					443,715		2					618,923	3
Accounts receivable - related parties			623	-					1,930		-					139,616	1
Other receivables			43,630	-					34,492		-					25,138	-
Inventories			3,201,690		13					2,857,115		12				1,722,880	7
Other current assets			1,858,492		7					1,313,929		5					659,038	3
Total current assets			18,172,732		71					16,987,161		70				15,570,448		69
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current			1,799,711		7					1,769,876		7					1,682,044		7
Financial assets at fair value through other comprehensive income - non-current			1,063,747		4					1,072,567	5					812,749	4
Investments accounted for using the equity method			231,634		1					244,482		1					92,350	-
Property, plant and equipment			1,988,634		8					1,989,134		8					2,018,008		9
Right-of-use assets			225,094	1					239,587		1					286,439	1
Investment properties, net			1,838,646		7					1,847,568		8					1,913,847		9
Intangible assets			70,193	-					72,016		-					84,831	-
Deferred tax assets			82,901	1					79,143	-					46,471	-
Refundable deposits			76,425	-					77,727		-					107,401	1
Other assets - non-current			312	-					3,086		-					12,447	-
Total non-current assets			7,377,297		29					7,395,186	30				7,056,587		31
TOTAL	$	25,550,029		100		$	24,382,347		100	$	22,627,035	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss - current	$	-		-		$	1,861		-		$	-		-
Contract liabilities - current			3,979,498		16					2,080,007		9					696,504	3
Notes payable			302	-					678	-					534	-
Accounts payable			1,019,273		4					891,369		4					776,965	3
Accounts payable - related parties			13,412	-					34,464		-					24,892	-
Other payables			1,571,790		6					1,731,268		7					2,346,245	10
Current tax liabilities			320,379		1					303,715		1					387,341	2
Provisions - current			41,872	-					290,786		1					175,654	1
Lease liabilities - current			47,900	-					52,466		-					97,314	-
Current portion of long-term borrowings			1,079,267		4					1,399,352		6					1,250,000		6
Other current liabilities			26,734	-					272,352		1					116,132	1
Total current liabilities			8,100,427		31					7,058,318		29				5,871,581	26
NON-CURRENT LIABILITIES
Long-term borrowings			2,380,000		9					2,010,000	8					840,000	4
Long-term bills payable			-		-					-		-					1,399,646		6
Deferred tax liabilities			193,779		1					192,906		1					201,582	1
Lease liabilities - non-current			105,643		1					114,530		-					168,614	1
Net defined benefit liabilities			309,420		1					308,755		1					354,104	1
Other non-current liabilities			265,402		1					141,130		1					49,922	-
Total non-current liabilities			3,254,244	13					2,767,321		11				3,013,868		13
Total liabilities			11,354,671		44					9,825,639		40				8,885,449		39
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Share capital			4,974,974		20					4,970,099		20				4,953,142		22
Capital collected in advance			16,217	-					12,037		-					3,796	-
Capital surplus			1,246,768		5					1,241,826		5					1,220,936		5
Retained earnings
Legal reserve			749,725		3					749,725		3					749,725	4
Special reserve			910,285		3					910,285	4					910,285	4
Unappropriated earnings			4,829,329		19					4,908,847		20				4,815,353	21
Other equity			131,127		1					207,098		1					(288,053)	(1)
Total equity attributable to owners of the Company			12,858,425		51					12,999,917		53				12,365,184		55
NON-CONTROLLING INTERESTS			1,336,933		5					1,556,791	7					1,376,402		6
Total equity			14,195,358		56					14,556,708		60				13,741,586		61
TOTAL	$	25,550,029		100		$	24,382,347		100	$	22,627,035		100

- 1 -

VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Loss Per Share) (Reviewed, Not Audited)

		For the Three Months Ended March 31
	2023			2022
		Amount	%				Amount	%
OPERATING REVENUE	$ 2,044,567		100		$ 2,208,219	100
OPERATING COSTS	1,460,522		71		1,267,951	57
GROSS PROFIT	584,045		29		940,268	43
OPERATING EXPENSES
Selling and marketing expenses	185,868		9		173,378	8
General and administrative expenses	150,424		7		146,344	7
Research and development expenses	441,414		22		538,827	24
Expected credit loss		-		-			2,240	-
Total operating expenses		777,706		38			860,789	39
(LOSS) PROFIT FROM OPERATIONS		(193,661)	(9)	79,479	4
NON-OPERATING INCOME AND EXPENSES
Interest income	115,742		5		6,211	-
Other income	37,642		2		98,821	5
Other gains and losses	11,291		1		(105,980)	(5)
Finance costs	(19,090)	(1)	(14,824)	(1)
Share of profit or loss of associates		(12,104)	(1)	(1,226)	-
Total non-operating income and expenses		133,481		6			(16,998)	(1)
(LOSS) PROFIT BEFORE INCOME TAX		(60,180)	(3)	62,481	3
INCOME TAX EXPENSE		(17,634)	(1)	(68,693)	(3)
NET LOSS FOR THE PERIOD		(77,814)	(4)	(6,212)	-
								(Continued)

- 2 -

VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Loss Per Share) (Reviewed, Not Audited)

			For the Three Months Ended March 31
				2023							2022
			Amount	%					Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to
profit or loss:
Unrealized gain or loss on investments in equity
instruments at fair value through other
comprehensive income	$	(17,928)	(1)	$		5,173	-
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on translating foreign
operations			(61,231)	(3)				395,488	18
Share of the other comprehensive income of
associates				236		-						2,608	-
Other comprehensive (loss) income for the
period, net of income tax			(78,923)	(4)				403,269	18
TOTAL COMPREHENSIVE (LOSS) INCOME FOR
THE PERIOD	$	(156,737)	(8)	$	397,057	18
NET (LOSS) PROFIT ATTRIBUTABLE TO:
Owners of the Company	$	(79,518)	(4)	$	(131,022)	(6)
Non-controlling interests				1,704		-					124,810	6
		$	(77,814)	(4)	$		(6,212)	-
TOTAL COMPREHENSIVE (LOSS) INCOME
ATTRIBUTABLE TO:
Owners of the Company	$	(154,391)	(8)	$	270,393	12
Non-controlling interests				(2,346)	-					126,664	6
		$	(156,737)	(8)	$	397,057	18
LOSS PER SHARE
From continuing operations
Basic			$	(0.16)						$	(0.26)
Diluted			$	(0.16)						$	(0.26)

(Concluded)

- 3 -

VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

																	Equity Attributable to Owners of the Company
																															Other Equity
																															Unrealized Gain
																																	or Loss on
																													Exchange	Financial Assets
																											Differences on		at Fair Value					Total Equity
																	Retained Earnings								Translating	Through Other		Unearned	Attributable to
					Capital Collected													Unappropriated			Foreign	Comprehensive		Employee	Owners of the	Non-controlling
	Share Capital		in Advance	Capital Surplus	Legal Reserve	Special Reserve			Earnings		Operations			Income		Benefits			Company			Interests	Total Equity
BALANCE, JANUARY 1, 2022	$	4,944,109		$	24,881		$	1,209,690	$	354,878	$	595,929	$	6,150,928			$	(666,970)	$	(22,498)	$	-	$	12,590,947	$	1,558,660	$	14,149,607
Appropriation of 2021 earnings
Legal reserve			-				-				-			394,847			-			(394,847)					-			-		-			-			-		-
Special reserve			-				-				-			-			314,356			(314,356)					-			-		-			-			-		-
Cash dividends distributed by the Company			-				-				-			-			-			(495,350)					-			-		-			(495,350)			-		(495,350)
Net (loss) profit for the three months ended March 31, 2022			-				-				-			-			-			(131,022)					-			-		-			(131,022)			124,810		(6,212)
Other comprehensive income for the three months ended March 31, 2022			-				-				-			-			-			-					397,758			3,657		-			401,415			1,854		403,269
Total comprehensive (loss) income for the three months ended March 31,
2022			-				-				-			-			-			(131,022)					397,758			3,657		-			270,393			126,664		397,057
Cash dividends distributed by the subsidiary			-				-				-			-			-			-					-			-		-			-			(325,606)		(325,606)
Change in capital surplus from investments in associates			-				-				73			-			-			-					-			-		-			73			-		73
Share-based payment transaction			-				-				4,915			-			-			-					-			-		-			4,915			-		4,915
Issuance of shares from exercise of employee share options			9,033				(21,085)			15,848			-			-			-					-			-		-			3,796			-		3,796
Changes in percentage of ownership interests in the subsidiary			-				-				(9,779)			-			-			-					-			-		-			(9,779)			16,541		6,762
Recognition of employee share options issued by the subsidiary			-				-				189			-			-			-					-			-		-			189			143		332
BALANCE, MARCH 31, 2022		$	4,953,142			$	3,796			$	1,220,936		$	749,725	$	910,285	$	4,815,353			$	(269,212)	$	(18,841)	$	-	$	12,365,184	$	1,376,402	$	13,741,586
BALANCE, JANUARY 1, 2023	$	4,970,099	$	12,037		$	1,241,826	$	749,725	$	910,285	$	4,908,847			$	266,586	$	(58,445)	$	(1,043)	$	12,999,917	$	1,556,791	$	14,556,708
Net (loss) profit for the three months ended March 31, 2023			-				-				-			-			-			(79,518)					-			-		-			(79,518)			1,704		(77,814)
Other comprehensive loss for the three months ended March 31, 2023			-				-				-			-			-			-					(60,985)			(13,888)		-			(74,873)			(4,050)		(78,923)
Total comprehensive loss for the three months ended March 31, 2023			-				-				-			-			-			(79,518)					(60,985)			(13,888)		-			(154,391)			(2,346)		(156,737)
Cash dividends distributed by the subsidiary			-				-				-			-			-			-					-			-		-			-			(225,865)		(225,865)
Change in capital surplus from investments in associates			-				-				118			-			-			-					-			-		(1,098)			(980)			-		(980)
Share-based payment transaction			-				-				1,736			-			-			-					-			-		-			1,736			-		1,736
Issuance of shares from exercise of employee share options			4,875				4,180				6,885			-			-			-					-			-		-			15,940			-		15,940
Changes in percentage of ownership interests in the subsidiary			-				-				(3,881)			-			-			-					-			-		-			(3,881)			8,287		4,406
Recognition of employee share options issued by the subsidiary			-				-				84			-			-			-					-			-		-			84			66		150
BALANCE, MARCH 31, 2023		$	4,974,974			$	16,217			$	1,246,768	$	749,725	$	910,285	$	4,829,329			$	205,601	$	(72,333)	$	(2,141)	$	12,858,425	$	1,336,933	$	14,195,358

- 4 -