Hua Nan Financial Holdings Co., Ltd. and Subsidiaries
Consolidated Financial Statements for the
Nine Months Ended September 30, 2024 and 2023 and Independent Auditors' Review Report
Conclusion
Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of September 30, 2024 and 2023, and of its consolidated financial performance for the three months ended September 30, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies, Regulations Governing the Preparation of Financial Reports by Securities Issuers, Regulations Governing the Preparation of Financial Reports by Public Banks, Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, Regulations Governing the Preparation of Financial Reports by Insurance Companies, the guidelines issued by the authority, and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
The engagement partners on the reviews resulting in this independent auditors' review report are Yi- Chun Wu and Han-Ni Fang.
Deloitte & Touche
Taipei, Taiwan
Republic of China
November 25, 2024
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.
- 2 -
HUA NAN FINANCIAL HOLDINGS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)
September 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||||||
ASSETS | Amount | % | Amount | % | Amount | % | ||||||||||||||||
CASH AND CASH EQUIVALENTS (Notes 6 and 44) | $ | 64,528,939 | 2 | $ | 39,596,420 | 1 | $ | 39,642,395 | 1 | |||||||||||||
DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS (Notes 6, 7 and 44) | 241,230,546 | 6 | 245,757,463 | 6 | 239,830,446 | 6 | ||||||||||||||||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Note 8) | 165,077,119 | 4 | 118,793,903 | 3 | 133,396,419 | 4 | ||||||||||||||||
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Notes 5, 9, 11 | ||||||||||||||||||||||
and 47) | 375,677,213 | 9 | 379,784,939 | 10 | 378,435,011 | 10 | ||||||||||||||||
INVESTMENTS IN DEBT INSTRUMENTS AT AMORTIZED COST, NET (Notes 5, 10, 11 and 47) | 780,796,456 | 19 | 686,891,136 | 18 | 692,470,021 | 18 | ||||||||||||||||
SECURITIES PURCHASED UNDER RESELL AGREEMENTS (Note 12) | 2,169,137 | - | 2,481,443 | - | 2,449,154 | - | ||||||||||||||||
RECEIVABLES, NET (Notes 5, 13 and 44) | 84,765,219 | 2 | 64,179,226 | 2 | 60,228,307 | 2 | ||||||||||||||||
CURRENT TAX ASSETS (Notes 4, 42 and 44) | 119,849 | - | 398,393 | - | 312,303 | - | ||||||||||||||||
DISCOUNTS AND LOANS, NET (Notes 5, 14 and 44) | 2,396,813,147 | 57 | 2,243,451,690 | 58 | 2,159,752,429 | 57 | ||||||||||||||||
REINSURANCE CONTRACTS ASSETS, NET | 6,520,817 | - | 6,917,297 | - | 7,868,797 | - | ||||||||||||||||
INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD, NET (Note 15) | 345,254 | - | 351,351 | - | 353,802 | - | ||||||||||||||||
OTHER FINANCIAL ASSETS, NET (Notes 5 and 16) | 16,296,129 | - | 19,050,712 | 1 | 18,453,752 | 1 | ||||||||||||||||
INVESTMENT PROPERTIES, NET (Notes 19 and 47) | 13,030,823 | - | 14,863,175 | - | 14,431,595 | - | ||||||||||||||||
PROPERTY AND EQUIPMENT, NET (Notes 17, 44 and 47) | 33,723,528 | 1 | 31,978,737 | 1 | 31,790,619 | 1 | ||||||||||||||||
RIGHT-OF-USE ASSETS (Notes 18 and 44) | 2,243,948 | - | 2,268,659 | - | 2,185,907 | - | ||||||||||||||||
INTANGIBLE ASSETS, NET (Note 20) | 899,424 | - | 919,111 | - | 939,575 | - | ||||||||||||||||
DEFERRED TAX ASSETS (Notes 4, 42 and 44) | 3,905,589 | - | 3,850,295 | - | 3,860,658 | - | ||||||||||||||||
OTHER ASSETS, NET (Notes 21, 44 and 47) | 5,214,254 | - | 4,594,464 | - | 6,290,760 | - | ||||||||||||||||
TOTAL | $ | 4,193,357,391 | 100 | $ | 3,866,128,414 | 100 | $ | 3,792,691,950 | 100 | |||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
DEPOSITS FROM THE CENTRAL BANK AND OTHER BANKS (Notes 22 and 44) | $ | 259,673,606 | 6 | $ | 190,550,622 | 5 | $ | 185,791,317 | 5 | |||||||||||||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Note 8) | 6,686,851 | - | 8,651,418 | - | 5,098,289 | - | ||||||||||||||||
SECURITIES SOLD UNDER REPURCHASE AGREEMENTS (Notes 8, 9, 10 and 24) | 47,547,285 | 1 | 109,103,919 | 3 | 112,051,981 | 3 | ||||||||||||||||
COMMERCIAL PAPER PAYABLE, NET (Notes 23 and 46) | 47,615,697 | 1 | 36,316,177 | 1 | 35,622,195 | 1 | ||||||||||||||||
PAYABLES (Note 25) | 69,380,720 | 2 | 45,127,555 | 1 | 46,722,336 | 1 | ||||||||||||||||
CURRENT TAX LIABILITIES (Notes 4, 42 and 44) | 2,346,061 | - | 3,640,732 | - | 3,004,968 | - | ||||||||||||||||
DEPOSITS AND REMITTANCES (Notes 26 and 44) | 3,339,821,746 | 80 | 3,065,364,627 | 80 | 2,997,347,970 | 79 | ||||||||||||||||
BONDS PAYABLE (Notes 27 and 46) | 71,288,636 | 2 | 80,586,915 | 2 | 79,586,346 | 2 | ||||||||||||||||
OTHER BORROWINGS (Notes 28 and 46) | 3,813,000 | - | 3,412,328 | - | 2,350,206 | - | ||||||||||||||||
PROVISIONS (Notes 4, 29 and 30) | 25,243,073 | 1 | 23,659,550 | 1 | 25,776,650 | 1 | ||||||||||||||||
OTHER FINANCIAL LIABILITIES (Note 31) | 85,854,418 | 2 | 76,978,878 | 2 | 77,046,230 | 2 | ||||||||||||||||
LEASE LIABILITIES (Notes 18, 44 and 46) | 2,304,561 | - | 2,325,107 | - | 2,244,676 | - | ||||||||||||||||
DEFERRED TAX LIABILITIES (Notes 4, 42 and 44) | 6,179,027 | - | 6,139,717 | - | 6,168,207 | - | ||||||||||||||||
OTHER LIABILITIES (Note 32) | 7,237,668 | - | 6,458,533 | - | 18,198,609 | 1 | ||||||||||||||||
Total liabilities | 3,974,992,349 | 95 | 3,658,316,078 | 95 | 3,597,009,980 | 95 | ||||||||||||||||
EQUITY ATTRIBUTABLE TO OWNER OF THE PARENT (Note 33) | ||||||||||||||||||||||
Share capital | ||||||||||||||||||||||
Ordinary shares | 137,791,734 | 3 | 136,427,459 | 3 | 136,427,459 | 4 | ||||||||||||||||
Capital surplus | 17,761,804 | - | 17,761,804 | - | 17,758,986 | - | ||||||||||||||||
Retained earnings | ||||||||||||||||||||||
Legal reserve | 24,580,603 | 1 | 22,273,772 | 1 | 22,273,772 | 1 | ||||||||||||||||
Special reserve | 10,540,113 | - | 18,503,358 | - | 18,503,358 | 1 | ||||||||||||||||
Unappropriated earnings | 32,081,695 | 1 | 23,117,999 | 1 | 18,309,631 | - | ||||||||||||||||
Total retained earnings | 67,202,411 | 2 | 63,895,129 | 2 | 59,086,761 | 2 | ||||||||||||||||
Other equity | ||||||||||||||||||||||
Exchange differences on translating the financial statements of foreign operations | 846,514 | - | (619,865) | - | 953,672 | - | ||||||||||||||||
Unrealized gain on investments in equity instruments at fair value through other comprehensive income | 11,023,517 | - | 10,697,410 | - | 8,739,458 | - | ||||||||||||||||
Unrealized loss on investments in debt instruments at fair value through other comprehensive income | (16,747,553) | - | (20,563,285) | - | (27,327,171) | (1) | ||||||||||||||||
Unrealized gain on other comprehensive income reclassified by overlay approach | 484,257 | - | 211,430 | - | 40,598 | - | ||||||||||||||||
Total other equity | (4,393,265) | - | (10,274,310) | - | (17,593,443) | (1) | ||||||||||||||||
Total equity attributable to owner of the parent | 218,362,684 | 5 | 207,810,082 | 5 | 195,679,763 | 5 | ||||||||||||||||
NON-CONTROLLING INTERESTS | 2,358 | - | 2,254 | - | 2,207 | - | ||||||||||||||||
Total equity | 218,365,042 | 5 | 207,812,336 | 5 | 195,681,970 | 5 | ||||||||||||||||
TOTAL | $ | 4,193,357,391 | 100 | $ | 3,866,128,414 | 100 | $ | 3,792,691,950 | 100 | |||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
- 3 -
HUA NAN FINANCIAL HOLDINGS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||
INTEREST REVENUE (Notes 34 | |||||||||||||||||||||||
and 44) | $ 25,592,237 | 142 | $ 22,844,168 | 145 | $ 75,365,759 | 147 | $ 64,155,058 | 142 | |||||||||||||||
INTEREST EXPENSES | |||||||||||||||||||||||
(Notes 34 and 44) | (18,914,051) | (105) | (16,234,500) | (103) | (55,913,218) | (109) | (43,271,944) | (96) | |||||||||||||||
NET INTEREST | 6,678,186 | 37 | 6,609,668 | 42 | 19,452,541 | 38 | 20,883,114 | 46 | |||||||||||||||
NET REVENUES OTHER | |||||||||||||||||||||||
THAN INTEREST | |||||||||||||||||||||||
Commission and fee revenue, | |||||||||||||||||||||||
net (Notes 35 and 44) | 3,996,125 | 22 | 3,163,071 | 20 | 11,599,148 | 23 | 8,331,401 | 19 | |||||||||||||||
Income from insurance | |||||||||||||||||||||||
premiums, net (Note 37) | 1,079,805 | 6 | 813,936 | 5 | 3,832,247 | 8 | 3,199,756 | 7 | |||||||||||||||
(Loss)gain on financial assets | |||||||||||||||||||||||
and liabilities at fair value | |||||||||||||||||||||||
through profit or loss, net | |||||||||||||||||||||||
(Notes 8, 37 and 44) | (1,423,151) | (8) | 13,329,565 | 85 | 22,476,592 | 44 | 22,493,789 | 50 | |||||||||||||||
Gain on investment properties, | |||||||||||||||||||||||
net (Note 19) | 178,523 | 1 | 156,441 | 1 | 553,044 | 1 | 429,611 | 1 | |||||||||||||||
Realized gain or loss on | |||||||||||||||||||||||
financial assets at fair value | |||||||||||||||||||||||
through other comprehensive | |||||||||||||||||||||||
income (Notes 9 and 38) | 1,643,311 | 9 | 1,133,583 | 7 | 2,157,740 | 4 | 2,077,338 | 5 | |||||||||||||||
Loss on derecognition of | |||||||||||||||||||||||
financial assets at amortized | |||||||||||||||||||||||
cost (Note 10) | (6,391) | - | - | - | (12,532) | - | (2,365) | - | |||||||||||||||
Foreign exchange gain(loss), | |||||||||||||||||||||||
net (Note 37) | 5,751,265 | 32 | (9,656,913) | (61) | (8,795,611) | (17) | (12,233,751) | (27) | |||||||||||||||
Reversal(impairment) loss on | |||||||||||||||||||||||
assets (Note 11) | 397 | - | (3,924) | - | (10,180) | - | (15,143) | - | |||||||||||||||
Share of profit of associates | |||||||||||||||||||||||
accounted for using the | |||||||||||||||||||||||
equity method (Note 15) | 3,261 | - | 3,347 | - | 2,785 | - | 2,849 | - | |||||||||||||||
Gain(loss) on profit or loss | |||||||||||||||||||||||
reclassified by overlay | |||||||||||||||||||||||
approach (Note 8) | 123,340 | 1 | 173,510 | 1 | (298,014) | (1) | (340,823) | (1) | |||||||||||||||
Other non-interest income, net | |||||||||||||||||||||||
(Note 44) | 61,776 | - | 46,275 | - | 157,188 | - | 150,616 | - | |||||||||||||||
Total net revenues other | |||||||||||||||||||||||
than interest | 11,408,261 | 63 | 9,158,891 | 58 | 31,662,407 | 62 | 24,093,278 | 54 | |||||||||||||||
TOTAL NET REVENUE | 18,086,447 | 100 | 15,768,559 | 100 | 51,114,948 | 100 | 44,976,392 | 100 | |||||||||||||||
ALLOWANCE FOR | |||||||||||||||||||||||
DOUBTFUL ACCOUNTS, | |||||||||||||||||||||||
COMMITMENTS, AND | |||||||||||||||||||||||
GUARANTEES (Notes 6, 7, | (1,477,664) | (8 | ) | (314,084 | ) | (2 | ) | (3,044,047) | (6 | ) | (1,069,393) | (2 | ) | ||||||||||
11, 13, 14, 16 and 29) | |||||||||||||||||||||||
CHANGE IN PROVISIONS FOR | |||||||||||||||||||||||
INSURANCE LIABILITIES, | |||||||||||||||||||||||
NET (Note 30) | (156,700) | (1) | (92,199) | - | (734,308) | (1) | (723,749) | (2) | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
(Notes 30, 39, 40, 41 and 44) | |||||||||||||||||||||||
Employee benefits | (5,219,849) | (29) | (4,915,570) | (31) | (15,458,671) | (30) | (14,501,472) | (32) | |||||||||||||||
Depreciation and amortization | (529,910) | (3) | (528,099) | (3) | (1,584,130) | (3) | (1,560,268) | (4) | |||||||||||||||
Others | (2,761,027) | (15) | (2,433,950) | (16) | (7,904,594) | (16) | (6,855,073) | (15) | |||||||||||||||
Total operating expenses | (8,510,786) | (47) | (7,877,619) | (50) | (24,947,395) | (49) | (22,916,813) | (51) | |||||||||||||||
(Continued) |
- 4 -
HUA NAN FINANCIAL HOLDINGS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||
NET PROFIT BEFORE | |||||||||||||||||||||||||||||||||
INCOME TAX | $ | 7,941,297 | 44 | $ | 7,484,657 | 48 | $ | 22,389,198 | 44 | $ | 20,266,437 | 45 | |||||||||||||||||||||
INCOME TAX EXPENSES | |||||||||||||||||||||||||||||||||
(Notes 4, 42 and 44) | (1,300,900) | (7) | (1,098,430) | (7) | (4,534,247) | (9) | (3,374,469) | (7) | |||||||||||||||||||||||||
NET PROFIT FOR THE | |||||||||||||||||||||||||||||||||
PERIOD | 6,640,397 | 37 | 6,386,227 | 41 | 17,854,951 | 35 | 16,891,968 | 38 | |||||||||||||||||||||||||
OTHER COMPREHENSIVE | |||||||||||||||||||||||||||||||||
INCOME (Notes 8, 33 and 42) | |||||||||||||||||||||||||||||||||
Items that will not be | |||||||||||||||||||||||||||||||||
reclassified subsequently to | |||||||||||||||||||||||||||||||||
profit or loss: | |||||||||||||||||||||||||||||||||
(Loss)gain on investments in | |||||||||||||||||||||||||||||||||
equity instruments at fair | |||||||||||||||||||||||||||||||||
value through other | |||||||||||||||||||||||||||||||||
comprehensive income | (1,526,890) | (9) | (67,740) | - | 3,514,201 | 7 | 1,536,651 | 3 | |||||||||||||||||||||||||
Items that may be reclassified | |||||||||||||||||||||||||||||||||
subsequently to profit or | |||||||||||||||||||||||||||||||||
loss: | |||||||||||||||||||||||||||||||||
Exchange differences on | |||||||||||||||||||||||||||||||||
translating the financial | |||||||||||||||||||||||||||||||||
statements of foreign | |||||||||||||||||||||||||||||||||
operations | (812,437) | (5) | 1,240,792 | 8 | 1,466,379 | 3 | 1,246,311 | 3 | |||||||||||||||||||||||||
Gain(loss) on investments in | |||||||||||||||||||||||||||||||||
debt instruments at fair | |||||||||||||||||||||||||||||||||
value through other | |||||||||||||||||||||||||||||||||
comprehensive income | 6,249,210 | 35 | (2,899,554) | (19) | 3,851,124 | 7 | (1,115,698) | (3) | |||||||||||||||||||||||||
(Loss)gain on other | |||||||||||||||||||||||||||||||||
comprehensive income | |||||||||||||||||||||||||||||||||
reclassified by overlay | |||||||||||||||||||||||||||||||||
approach | (123,340) | (1) | (173,510) | (1) | 298,014 | 1 | 340,823 | 1 | |||||||||||||||||||||||||
Income tax relating to items | |||||||||||||||||||||||||||||||||
that may be reclassified | |||||||||||||||||||||||||||||||||
subsequently to | |||||||||||||||||||||||||||||||||
profit(loss) | (43,447) | - | 19,010 | - | (60,579) | - | 4,120 | - | |||||||||||||||||||||||||
Other comprehensive | |||||||||||||||||||||||||||||||||
income (loss) for the | |||||||||||||||||||||||||||||||||
period | 3,743,096 | 20 | (1,881,002) | (12) | 9,069,139 | 18 | 2,012,207 | 4 | |||||||||||||||||||||||||
TOTAL COMPREHENSIVE | |||||||||||||||||||||||||||||||||
$ | 10,383,493 | 57 | $ | 4,505,225 | 29 | $ | 26,924,090 | 53 | $ | 18,904,175 | 42 | ||||||||||||||||||||||
INCOME FOR THE PERIOD | |||||||||||||||||||||||||||||||||
NET PROFIT ATTRIBUTABLE | |||||||||||||||||||||||||||||||||
TO: | |||||||||||||||||||||||||||||||||
Owner of the parent | $ | 6,640,325 | 37 | $ | 6,386,196 | 41 | $ | 17,854,805 | 35 | $ | 16,891,870 | 38 | |||||||||||||||||||||
Non-controlling interests | 72 | - | 31 | - | 146 | - | 98 | - | |||||||||||||||||||||||||
$ | 6,640,397 | 37 | $ | 6,386,227 | 41 | $ | 17,854,951 | 35 | $ | 16,891,968 | 38 | ||||||||||||||||||||||
COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||
ATTRIBUTABLE TO: | |||||||||||||||||||||||||||||||||
Owner of the parent | $ | 10,383,417 | 57 | $ | 4,505,202 | 29 | $ | 26,923,897 | 53 | $ | 18,904,053 | 42 | |||||||||||||||||||||
Non-controlling interests | 76 | - | 23 | - | 193 | - | 122 | - | |||||||||||||||||||||||||
$ | 10,383,493 | 57 | $ | 4,505,225 | 29 | $ | 26,924,090 | 53 | $ | 18,904,175 | 42 | ||||||||||||||||||||||
EARNINGS PER SHARE | |||||||||||||||||||||||||||||||||
(Note 43) | |||||||||||||||||||||||||||||||||
Basic and diluted | $ 0.48 | $ 0.46 | $ 1.30 | $ 1.23 | |||||||||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
- 5 -
HUA NAN FINANCIAL HOLDINGS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)
Other Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) on | Unrealized Gain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange | Investment in | (Loss) on | Unrealized Gain | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Differences on | Equity | Investment in | (Loss) on Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Translating the | Instruments at | Debt Instruments | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial | Fair Value | at Fair Value | Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Statements of | Through Other | Through Other | Reclassified by | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital | Capital Surplus | Unappropriated | Foreign | Comprehensive | Comprehensive | Overlay | Non-controlling | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Share Premium | Treasury Stock | Donated Assets | Others | Total | Legal Reserve | Special Reserve | Earnings | Total | Operations | Income | Income | Approach | Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2023 | $ | 136,427,459 | $ | 17,702,376 | $ | 52,349 | $ | 2,936 | $ | 1,325 | $ | 17,758,986 | $ | 20,380,779 | $ | 6,471,594 | $ | 22,023,668 | $ | 48,876,041 | $ | (292,639 ) | $ | 8,570,902 | $ | (26,224,250 ) | $ | (291,568 ) | $ | 2,175 | $ | 184,827,106 | |||||||||||||||||||||||
Appropriation of 2022 earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve | - | - | - | - | - | - | 1,892,993 | - | (1,892,993 ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Special reserve | - | - | - | - | - | - | - | 12,031,764 | (12,031,764 ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Cash dividends | - | - | - | - | - | - | - | - | (8,049,221 ) | (8,049,221 ) | - | - | - | - | - | (8,049,221 ) | |||||||||||||||||||||||||||||||||||||||
Cash dividends distributed by subsidiaries | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (90 ) | (90 ) | |||||||||||||||||||||||||||||||||||||||
Net profit for the nine months ended September 30, 2023 | - | - | - | - | - | - | - | - | 16,891,870 | 16,891,870 | - | - | - | - | 98 | 16,891,968 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the nine months ended | - | - | - | - | - | - | - | - | - | - | 1,246,311 | 1,536,627 | (1,102,921 | ) | 332,166 | 24 | 2,012,207 | ||||||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | - | - | - | - | - | - | - | - | 16,891,870 | 16,891,870 | 1,246,311 | 1,536,627 | (1,102,921 ) | 332,166 | 122 | 18,904,175 | |||||||||||||||||||||||||||||||||||||||
Disposal of equity instruments at fair value through other comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
income | - | - | - | - | - | - | - | - | 1,368,071 | 1,368,071 | - | (1,368,071 ) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2023 | $ | 136,427,459 | $ | 17,702,376 | $ | 52,349 | $ | 2,936 | $ | 1,325 | $ | 17,758,986 | $ | 22,273,772 | $ | 18,503,358 | $ | 18,309,631 | $ | 59,086,761 | $ | 953,672 | $ | 8,739,458 | $ | (27,327,171) | $ | 40,598 | $ | 2,207 | $ | 195,681,970 | |||||||||||||||||||||||
BALANCE AT JANUARY 1, 2024 | $ | 136,427,459 | $ | 17,702,376 | $ | 52,349 | $ | 2,936 | $ | 4,143 | $ | 17,761,804 | $ | 22,273,772 | $ | 18,503,358 | $ | 23,117,999 | $ | 63,895,129 | $ | (619,865 ) | $ | 10,697,410 | $ | (20,563,285 ) | $ | 211,430 | $ | 2,254 | $ | 207,812,336 | |||||||||||||||||||||||
Appropriation of 2023 earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve | - | - | - | - | - | - | 2,306,831 | - | (2,306,831 ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Special reserve | - | - | - | - | - | - | - | (7,963,245 ) | 7,963,245 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Cash dividends | - | - | - | - | - | - | - | - | (16,371,295 ) | (16,371,295 ) | - | - | - | - | - | (16,371,295 ) | |||||||||||||||||||||||||||||||||||||||
Stock dividends | 1,364,275 | - | - | - | - | - | - | - | (1,364,275 ) | (1,364,275 ) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Cash dividends distributed by subsidiaries | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (89 ) | (89 ) | |||||||||||||||||||||||||||||||||||||||
Net profit for the nine months ended September 30, 2024 | - | - | - | - | - | - | - | - | 17,854,805 | 17,854,805 | - | - | - | - | 146 | 17,854,951 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the nine months ended | - | - | - | - | - | - | - | - | - | - | 1,466,379 | 3,514,154 | 3,815,732 | 272,827 | 47 | 9,069,139 | |||||||||||||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2024 | - | - | - | - | - | - | - | - | 17,854,805 | 17,854,805 | 1,466,379 | 3,514,154 | 3,815,732 | 272,827 | 193 | 26,924,090 | |||||||||||||||||||||||||||||||||||||||
Disposal of equity instruments at fair value through other comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
income | - | - | - | - | - | - | - | - | 3,188,047 | 3,188,047 | - | (3,188,047 ) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2024 | $ | 137,791,734 | $ | 17,702,376 | $ | 52,349 | $ | 2,936 | $ | 4,143 | $ | 17,761,804 | $ | 24,580,603 | $ | 10,540,113 | $ | 32,081,695 | $ | 67,202,411 | $ | 846,514 | $ | 11,023,517 | $ | (16,747,553) | $ | 484,257 | $ | 2,358 | $ | 218,365,042 | |||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
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HUA NAN FINANCIAL HOLDINGS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)
For the Nine Months Ended | |||||
September 30 | |||||
2024 | 2023 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net profit before income tax | $ 22,389,198 | $ 20,266,437 | |||
Adjustments for: | |||||
Depreciation expenses | 1,320,784 | 1,277,985 | |||
Amortization expenses | 263,346 | 282,283 | |||
Allowance for doubtful accounts, commitments, and guarantees | 3,044,047 | 1,069,393 | |||
Interest expenses | 55,913,218 | 43,271,944 | |||
Net gain on derecognition of financial assets at amortized cost | 12,532 | 2,365 | |||
Interest income | (75,365,759) | (64,155,058) | |||
Dividend income | (2,455,311) | (2,315,404) | |||
Change in provisions for insurance liabilities, net | 734,308 | 723,749 | |||
Share of profit of associates accounted for using the equity method | (2,785) | (2,849) | |||
Gain on profit or loss reclassified by overlay approach | 298,014 | 340,823 | |||
Gain on disposal of property and equipment | (340) | (263) | |||
Gain on disposal of investment properties | (195,849) | (105,327) | |||
Impairment loss recognized on financial assets | 14,857 | 15,143 | |||
Reversal of impairment loss recognized on non-financial assets | (4,677) | - | |||
Others | 5,812 | 377 | |||
Changes in operating assets and liabilities | |||||
Increase in due from the Central Bank and call loans to other banks | (1,804,717) | (10,288,440) | |||
Increase in financial assets at fair value through profit or loss | (46,689,622) | (41,034,308) | |||
Decrease (increase) in financial assets at fair value through other | |||||
comprehensive income | 11,505,088 | (19,199,352) | |||
(Increase) decrease in investment in debt instruments at amortized | |||||
cost | (93,879,194) | 23,823,123 | |||
Increase in receivables | (19,012,723) | (10,521,557) | |||
Increase in discounts and loans | (156,133,577) | (123,380,805) | |||
Decrease (increase) in assets under reinsurance contracts | 1,336,365 | (216,957) | |||
Decrease (increase) decrease in other financial assets | 2,703,059 | (982,608) | |||
Increase in other assets | (522,525) | (2,353,626) | |||
Increase in deposits from the Central Bank and other banks | 69,122,984 | 3,399,821 | |||
Decrease in financial liabilities at fair value through profit or loss | (1,964,567) | (1,135,256) | |||
(Decrease) increase in securities sold under repurchase agreements | (61,556,634) | 58,690,776 | |||
Increase in payables | 24,185,038 | 3,131,537 | |||
Increase in deposits and remittances | 274,457,119 | 53,885,837 | |||
Decrease in provisions | (200,924) | (64,495) | |||
Increase in other financial liabilities | 8,875,540 | 12,169,663 | |||
(Decrease) increase in other liabilities | (1,208,951) | 5,575,984 | |||
Cash generated from (used in) operations | 15,183,154 | (47,829,065) | |||
Interest received | 73,981,504 | 61,473,751 | |||
Dividends received | 2,445,324 | 2,264,122 | |||
(Continued) |
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HUA NAN FINANCIAL HOLDINGS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)
For the Nine Months Ended | |||||||
September 30 | |||||||
2024 | 2023 | ||||||
Interest paid | $ | (53,480,580) | $ | (37,701,402) | |||
Income tax paid | (6,063,135) | (4,282,687) | |||||
Net cash generated from (used in) operating activities | 32,066,267 | (26,075,281) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Acquisition of property and equipment | (1,274,222) | (1,774,387) | |||||
Proceeds from disposal of property and equipment | 359 | 867 | |||||
Acquisition of intangible assets | (198,428) | (119,635) | |||||
Proceeds from disposal of intangible assets | - | 3,000 | |||||
Net cash outflow on acquisition of subsidiaries | - | (22,000) | |||||
Acquisition of investment properties | (288,871) | (177,877) | |||||
Proceeds from disposal of investments properties | 1,044,732 | 391,240 | |||||
Net cash used in investing activities | (716,430) | (1,698,792) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Increase in short-term borrowings | 591,000 | 815,000 | |||||
Decrease in short-term borrowings | (186,000) | (430,794) | |||||
Increase in commercial paper payable | 11,307,662 | 15,748,008 | |||||
Repayments of corporate bonds | - | (7,000,000) | |||||
Repayments of bank debentures | (9,300,000) | - | |||||
Proceeds from long-term borrowings | 533,000 | 110,000 | |||||
Repayments of long-term borrowings | (537,328) | - | |||||
Repayment of the principal portion of lease liabilities | (559,119) | (555,307) | |||||
Cash dividends paid to owners of the Company | (16,318,052) | (8,022,828) | |||||
Dividends paid to non-controlling interests | (89) | (90) | |||||
Net cash (used in) generated from financing activities | (14,468,926) | 663,989 | |||||
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE | |||||||
OF CASH HELD IN FOREIGN CURRENCIES | 1,411,179 | 1,152,694 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH | |||||||
EQUIVALENTS | 18,292,090 | (25,957,390) | |||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE | |||||||
PERIOD | 165,833,899 | 186,822,057 | |||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ | 184,125,989 | $ | 160,864,667 | |||
(Continued) |
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HUA NAN FINANCIAL HOLDINGS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)
Reconciliation of the amounts in the consolidated statements of cash flows with the equivalent items reported in the consolidated balance sheets as of September 30, 2024 and 2023:
September 30 | |||||||
2024 | 2023 | ||||||
Cash and cash equivalents in consolidated balance sheets | $ | 64,528,939 | $ | 39,642,395 | |||
Due from the Central Bank and other banks that meet the definition of | |||||||
cash and cash equivalents in IAS 7 | 117,427,913 | 118,773,118 | |||||
Securities purchased under resell agreements that meet the definition of | |||||||
cash and cash equivalents in IAS 7 | 2,169,137 | 2,449,154 | |||||
Cash and cash equivalents in consolidated statements of cash flows | $ | 184,125,989 | $ | 160,864,667 |
The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
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