VIA Technologies : Financial Document

VIA Technologies, Inc. and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2023 and 2022

VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

	September 30, 2023		December 31, 2022	September 30, 2022
ASSETS		Amount	%		Amount	%		Amount	%
CURRENT ASSETS
Cash and cash equivalents	$	11,763,789	47	$	11,850,296	49	$	12,253,645	50
Financial assets at fair value through profit or loss - current		322,919	1		382,613	2		373,404	1
Financial assets at amortized cost - current		751,854	3		103,071	-		168,900	1
Notes and accounts receivable		439,144	2		445,645	2		459,678	2
Other receivables		136,908	-		34,492	-		20,915	-
Inventories		2,979,991	12		2,857,115	12		2,270,089	9
Other current assets		920,897	4		1,313,929	5		1,372,799	6
Total current assets		17,315,502	69		16,987,161	70		16,919,430	69
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current		1,868,351	8		1,769,876	7		1,749,544	7
Financial assets at fair value through other comprehensive income - non-current		1,195,095	5		1,072,567	5		1,112,199	5
Investments accounted for using the equity method		234,459	1		244,482	1		261,173	1
Property, plant and equipment		1,992,448	8		1,989,134	8		1,974,400	8
Right-of-use assets		204,389	1		239,587	1		260,117	1
Investment properties, net		1,862,408	8		1,847,568	8		1,901,360	8
Intangible assets		108,597	-		72,016	-		72,841	-
Deferred tax assets		96,978	-		79,143	-		67,069	-
Other assets - non-current		76,979	-		80,813	-		123,759	1
Total non-current assets		7,639,704	31		7,395,186	30		7,522,462	31
TOTAL	$	24,955,206	100	$	24,382,347	100	$	24,441,892	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss - current	$	-	-	$	1,861	-	$	-	-
Contract liabilities - current		3,016,758	12		2,080,007	9		1,949,442	8
Notes and accounts payable		913,405	4		926,511	4		664,753	3
Other payables		1,572,146	6		1,731,268	7		1,556,281	6
Current tax liabilities		218,618	1		303,715	1		280,379	1
Provisions - current		164,673	1		290,786	1		239,898	1
Lease liabilities - current		43,374	-		52,466	-		89,888	1
Current portion of long-term borrowings		1,135,495	4		1,399,352	6		530,000	2
Other current liabilities		265,370	1		272,352	1		308,344	1
Total current liabilities		7,329,839	29		7,058,318	29		5,618,985	23
NON-CURRENT LIABILITIES
Long-term borrowings		1,970,000	8		2,010,000	8		2,172,000	9
Long-term bills payable		-	-		-	-		707,320	3
Deferred tax liabilities		196,170	1		192,906	1		200,276	1
Lease liabilities - non-current		91,340	-		114,530	-		134,041	-
Net defined benefit liabilities		310,623	1		308,755	1		354,792	1
Other non-current liabilities		121,282	1		141,130	1		436,260	2
Total non-current liabilities		2,689,415	11		2,767,321	11		4,004,689	16
Total liabilities		10,019,254	40		9,825,639	40		9,623,674	39
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Share capital		4,983,832	20		4,970,099	20		4,966,029	21
Capital collected in advance		16,377	-		12,037	-		8,075	-
Capital surplus		1,256,114	5		1,241,826	5		1,242,397	5
Retained earnings
Legal reserve		749,725	3		749,725	3		749,725	3
Special reserve		176,605	-		910,285	4		910,285	4
Unappropriated earnings		5,677,799	23		4,908,847	20		4,856,577	20
Other equity		658,246	3		207,098	1		547,119	2
Total equity attributable to owners of the Company		13,518,698	54		12,999,917	53		13,280,207	55
NON-CONTROLLING INTERESTS		1,417,254	6		1,556,791	7		1,538,011	6
Total equity		14,935,952	60		14,556,708	60		14,818,218	61
TOTAL	$	24,955,206	100	$	24,382,347	100	$	24,441,892	100

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VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

		For the Three Months Ended September 30			For the Nine Months Ended September 30
		2023			2022			2023			2022
		Amount	%		Amount	%		Amount	%		Amount	%
OPERATING REVENUE	$	3,238,600	100	$	2,595,420	100	$	8,433,946	100	$	7,092,640	100
OPERATING COSTS		2,472,346	76		1,736,924	67		6,192,497	73		4,463,369	63
GROSS PROFIT		766,254	24		858,496	33		2,241,449	27		2,629,271	37
OPERATING EXPENSES
Selling and marketing expenses		186,163	6		187,212	7		567,076	7		552,464	8
General and administrative
expenses		159,184	5		151,425	6		482,306	6		446,314	6
Research and development
expenses		418,237	13		447,106	17		1,355,836	16		1,470,013	21
Expected credit loss		-	-		45	-		-	-		2,624	-
Total operating expenses		763,584	24		785,788	30		2,405,218	29		2,471,415	35
PROFIT (LOSS) FROM
OPERATIONS		2,670	-		72,708	3		(163,769)	(2)		157,856	2
NON-OPERATING INCOME
AND EXPENSES
Interest income		132,512	4		37,540	1		365,710	4		54,775	1
Other income		59,793	2		74,555	3		171,585	2		264,874	4
Other gains and losses		7,627	-		129,070	5		42,771	1		40,012	1
Finance costs		(18,429)	-		(16,529)	(1)		(57,465)	(1)		(47,850)	(1)
Share of profit or loss of
associates		(6,226)	-		2,124	-		(21,955)	-		2,201	-
Total non-operating
income and expenses		175,277	6		226,760	8		500,646	6		314,012	5
PROFIT BEFORE INCOME
TAX		177,947	6		299,468	11		336,877	4		471,868	7
INCOME TAX EXPENSE		(50,504)	(2)		(37,129)	(1)		(155,504)	(2)		(266,047)	(4)
NET PROFIT FOR THE
PERIOD		127,443	4		262,339	10		181,373	2		205,821	3
OTHER COMPREHENSIVE
INCOME AND LOSS
Items that will not be
reclassified subsequently to
profit or loss:
Unrealized loss on
investments in equity
instruments at fair value
through other
comprehensive income		(27,123)	(1)		(2,435)	-		(20,832)	-		(15,250)	-
Items that may be reclassified
subsequently to profit or
loss:
Exchange differences on
translating foreign
operations		414,812	13		584,044	23		462,341	6		1,240,819	17
Share of the other
comprehensive income of
associates		14,986	-		764	-		13,746	-		2,551	-
Other comprehensive
income for the period,
net of income tax		402,675	12		582,373	23		455,255	6		1,228,120	17
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD	$	530,118	16	$	844,712	33	$	636,628	8	$	1,433,941	20
											(Continued)

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VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

		For the Three Months Ended September 30			For the Nine Months Ended September 30
			2023				2022				2023				2022
		Amount	%		Amount	%		Amount	%			Amount	%
NET PROFIT (LOSS)
ATTRIBUTABLE TO:
Owners of the Company	$	91,984	3	$	204,230	8	$	110,024		1	$	(89,798)	(1)
Non-controlling interests		35,459	1		58,109	2		71,349		1		295,619	4
	$	127,443	4	$	262,339	10	$	181,373		2	$	205,821	3
TOTAL COMPREHENSIVE
INCOME ATTRIBUTABLE
TO:
Owners of the Company	$	491,080	15	$	788,036	31	$	560,994		7	$	1,146,789	16
Non-controlling interests		39,038	1		56,676	2		75,634		1		287,152	4
	$	530,118	16	$	844,712	33	$	636,628		8	$	1,433,941	20
EARNINGS (LOSS) PER
SHARE
From continuing operations
Basic		$	0.18			$	0.41			$	0.22				$ (0.18)
Diluted		$	0.18			$	0.41			$	0.22				$ (0.18)

(Concluded)

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VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

									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 nine months ended September 30, 2022		-		-		-		-		-		(89,798)		-		-		-		(89,798)		295,619		205,821
Other comprehensive income (loss) for the nine months ended
September 30, 2022		-		-		-		-		-		-		1,242,618		(6,031)		-		1,236,587		(8,467)		1,228,120
Total comprehensive (loss) income for the nine months ended
September 30, 2022		-		-		-		-		-		(89,798)		1,242,618		(6,031)		-		1,146,789		287,152		1,433,941
Cash dividends distributed by the subsidiary		-		-		-		-		-		-		-		-		-		-		(325,580)		(325,580)
Change in capital surplus from investments in associates		-		-		132		-		-		-		-		-		-		132		-		132
Share-based payment transaction		-		-		14,290		-		-		-		-		-		-		14,290		-		14,290
Issuance of shares from exercise of employee share options		21,920		(16,806)		27,706		-		-		-		-		-		-		32,820		-		32,820
Changes in percentage of ownership interests in the subsidiary		-		-		(9,987)		-		-		-		-		-		-		(9,987)		17,347		7,360
Recognition of employee share options issued by the subsidiary		-		-		566		-		-		-		-		-		-		566		432		998
BALANCE, SEPTEMBER 30, 2022	$	4,966,029	$	8,075	$	1,242,397	$	749,725	$	910,285	$	4,856,577	$	575,648	$	(28,529)	$	-	$	13,280,207	$	1,538,011	$	14,818,218
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
Appropriation of 2022 earnings
Special reserve		-		-		-		-		(733,680)		733,680		-		-		-		-		-		-
Cash dividends distributed by the Company		-		-		-		-		-		(74,752)		-		-		-		(74,752)		-		(74,752)
Net profit for the nine months ended September 30, 2023		-		-		-		-		-		110,024		-		-		-		110,024		71,349		181,373
Other comprehensive income (loss) for the nine months ended
September 30, 2023		-		-		-		-		-		-		475,717		(24,747)		-		450,970		4,285		455,255
Total comprehensive income (loss) for the nine months ended
September 30, 2023		-		-		-		-		-		110,024		475,717		(24,747)		-		560,994		75,634		636,628
Change in capital surplus from investments in associates		-		-		(1,272)		-		-		-		-		-		178		(1,094)		-		(1,094)
Share-based payment transaction		-		-		3,632		-		-		-		-		-		-		3,632		-		3,632
Issuance of shares from exercise of employee share options		13,733		4,340		16,494		-		-		-		-		-		-		34,567		-		34,567
Changes in percentage of ownership interests in the subsidiary		-		-		(4,819)		-		-		-		-		-		-		(4,819)		10,483		5,664
Recognition of employee share options issued by the subsidiary		-		-		253		-		-		-		-		-		-		253		197		450
Cash dividends distributed by the subsidiary		-		-		-		-		-		-		-		-		-		-		(225,851)		(225,851)
BALANCE, SEPTEMBER 30, 2023	$	4,983,832	$	16,377	$	1,256,114	$	749,725	$	176,605	$	5,677,799	$	742,303	$	(83,192)	$	(865)	$	13,518,698	$	1,417,254	$	14,935,952

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VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

		For the Nine Months Ended
		September 30
		2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$	336,877	$	471,868
Adjustments for:
Depreciation expense		171,218		175,848
Amortization expense		50,893		52,026
Expected credit loss		-		2,624
Finance costs		57,465		47,850
Interest income		(365,710)		(54,775)
Dividend income		(3,396)		(5,612)
Compensation costs of employee share options		4,082		15,288
Share of profit or loss of associates		21,955		(2,201)
Loss (gain) on disposal of property, plant and equipment		9,894		(6,087)
Loss on disposal of intangible assets		-		27
Reversal of impairment loss on non-financial assets		(8,393)		-
Loss on changes in fair value of investment properties		17,491		-
Gain on lease modification		(14)		(3,328)
Gain on bargain purchase		-		(327)
Changes in operating assets and liabilities
Financial assets at fair value through profit or loss		9,898		167,376
Notes and accounts receivable		6,501		195,043
Other receivables		(62,486)		10,183
Inventories		(122,876)		(658,454)
Other current assets		393,032		(1,107,435)
Other non-current assets		3,086		9,514
Financial liabilities at fair value through profit or loss		(1,861)		-
Contract liabilities		936,751		1,589,155
Notes and accounts payable		(13,106)		(290,427)
Other payables		(175,658)		(162,060)
Provisions		(126,113)		100,214
Other current liabilities		(6,982)		167,887
Net defined benefit liabilities		1,868		975
Cash generated from operations		1,134,416		715,172
Interest received		325,780		54,052
Dividends received		3,396		5,612
Interest paid		(57,626)		(47,820)
Income tax paid		(258,436)		(366,137)
Net cash generated from operating activities		1,147,530		360,879
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive
income		(143,360)		(457,334)
Purchase of financial assets at amortized cost		(942,198)		(108,900)
				(Continued)
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VIA TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

		For the Nine Months Ended
		September 30
		2023		2022
Proceeds from sale of financial assets at amortized cost	$	293,415	$	1,486,144
Purchase of long-term equity investments using the equity method		-		(165,760)
Payments for property, plant and equipment		(139,238)		(109,617)
Proceeds from disposal of property, plant and equipment		3,698		6,953
Increase in refundable deposits		(219)		(537)
Decrease in refundable deposits		4,198		371
Payments for intangible assets		(59,744)		(59,330)
Payments for investment properties		(272)		(394)
Increase in other financial assets		(2,226)		(12,560)
Dividends received from associates		720		41,507
Net cash (used in) generated from investing activities		(985,226)		620,543
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in long-term bills payable		-		298,000
Decrease in long-term bills payable		(36,000)		(692,000)
Proceeds from long-term borrowings		300,000		1,425,000
Repayments of long-term borrowings		(568,000)		(838,000)
Increase in guarantee deposits		164,440		391,159
Decrease in guarantee deposits		(243,768)		(4,282)
Repayment of the principal portion of lease liabilities		(42,396)		(79,259)
Distribution of cash dividends		(74,752)		(495,350)
Proceeds from exercise of employee share options		34,567		32,820
Partial disposal of interests in the subsidiary without a loss of control		5,664		7,360
Dividends paid to non-controlling interests		(225,851)		(325,580)
Net cash used in financing activities		(686,096)		(280,132)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE
OF CASH HELD IN FOREIGN CURRENCIES		437,285		1,072,608
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS		(86,507)		1,773,898
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD		11,850,296		10,479,747
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	11,763,789	$	12,253,645

(Concluded)

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