1
Stock Code:6213
ITEQ CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
With Independent Auditors' Review Report
For the Three Months Ended March 31, 2024 and 2023
Address: | No. 17, Daluge Rd., Xinpu Township, Hsinchu County 305, Taiwan (R.O.C.) |
Telephone: | 886-3-588-7888 |
The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.
2
Table of contents
Contents | Page | |||
1. | Cover Page | 1 | ||
2. | Table of Contents | 2 | ||
3. | Independent Auditors' Review Report | 3 | ||
4. | Consolidated Balance Sheets | 4 | ||
5. | Consolidated Statements of Comprehensive Income | 5 | ||
6. | Consolidated Statements of Changes in Equity | 6 | ||
7. | Consolidated Statements of Cash Flows | 7 | ||
8. | Notes to the Consolidated Financial Statements | |||
(1) | Company history | 8 | ||
(2) | Approval date and procedures of the consolidated financial statements | 8 | ||
(3) | New standards, amendments and interpretations adopted | 8～10 | ||
(4) | Summary of material accounting policies | 10～11 | ||
(5) | Significant accounting assumptions and judgments, and major sources | 11～12 | ||
of estimation uncertainty | ||||
(6) | Explanation of significant accounts | 12～36 | ||
(7) | Related-party transactions | 36～37 | ||
(8) | Pledged assets | 38 | ||
(9) | Commitments and contingencies | 38 | ||
(10) | Losses due to major disasters | 38 | ||
(11) | Subsequent events | 38 | ||
(12) | Other | 38 | ||
(13) | Other disclosures | |||
(a) Information on significant transactions | 39～41 | |||
(b) Information on investees | 42 | |||
(c) Information on investment in mainland China | 43 | |||
(d) Information on major shareholders | 44 | |||
(14) | Segment information | 45 |
3
Independent Auditors' Review Report
To the Board of Directors ITEQ Corporation:
Introduction
We have reviewed the accompanying consolidated balance sheets of ITEQ Corporation and its subsidiaries as of March 31, 2024 and 2023, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2024 and 2023, 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 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.
Scope of Review
Except as explained in the Basis for Qualified Conclusion 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 the 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 conducted in accordance with the Standards on Auditing of the Republic of China 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 stated in note 4(b), the consolidated financial statements included the financial statements of certain non- significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $884,455 thousand and $1,239,748 thousand, constituting 2.59% and 3.69% of consolidated total assets as of March 31, 2024 and 2023, respectively, total liabilities amounting to $853,621 thousand and $1,014,956 thousand, constituting 5.97% and 7.07% of consolidated total liabilities at March 31, 2024 and 2023, respectively, and total comprehensive income (loss) amounting to $(16,027) thousand and $(21,386) thousand, constituting (1.64)% and (12.29)% of consolidated total comprehensive income (loss) for the three months ended March 31, 2024 and 2023, respectively.
Furthermore, as stated in note 6(e), the other equity accounted investments of ITEQ Corporation and its subsidiaries in its investee companies of $40,632 thousand and $46,738 thousand as of March 31, 2024 and 2023, respectively, and the share of loss of associates and joint ventures accounted for using equity method of $(1,490) thousand and $(865) thousand for the three months ended March 31, 2024 and 2023, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.
3-1
Qualified Conclusion
Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, 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 ITEQ Corporation and its subsidiaries as of March 31, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers 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 Tang, Chia- Chien and Chen, Ya-Ling.
KPMG
Taipei, Taiwan (Republic of China)
May 6, 2024
Notes to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.
The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.
4
(English Translation of Consolidated Financial Statements and Originally Issued in Chinese)
ITEQ CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2024, December 31, 2023, and March 31, 2023
(Expressed in Thousands of New Taiwan Dollars)
Assets | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
1100 | Cash and cash equivalents (note 6(a)) | $ | 5,417,785 | 16 | 5,594,270 | 17 | 5,680,786 | 17 | |||||||||||||||||
Current financial assets at fair value through profit or loss | |||||||||||||||||||||||||
1110 | (note 6(b)) | 3,566 | - | 3,654 | - | 3,772 | - | ||||||||||||||||||
1136 | Current financial assets at amortised cost (note 6(b)) | 58,633 | - | 86,704 | - | 88,624 | - | ||||||||||||||||||
1170 | Accounts and notes receivable, net (notes 6(c) and (s)) | 11,903,233 | 35 | 11,497,719 | 35 | 11,692,358 | 35 | ||||||||||||||||||
1200 | Other receivables (note 6(c)) | 78,985 | - | 51,147 | - | 257,770 | 1 | ||||||||||||||||||
1220 | Current tax assets | 33 | - | 8,327 | - | 90 | - | ||||||||||||||||||
130X | Inventories (note 6(d)) | 3,075,416 | 9 | 3,014,243 | 9 | 2,555,974 | 8 | ||||||||||||||||||
1470 | Other current assets (note 6(h)) | 955,253 | 3 | 1,050,357 | 3 | 1,199,216 | 3 | ||||||||||||||||||
Total current assets | 21,492,904 | 63 | 21,306,421 | 64 | 21,478,590 | 64 | |||||||||||||||||||
Non-current assets: | |||||||||||||||||||||||||
1517 | Non-current financial assets at fair value through other | ||||||||||||||||||||||||
comprehensive income (note 6(b)) | 37,132 | - | 36,279 | - | 32,428 | - | |||||||||||||||||||
1550 | Investments accounted for using equity method (note 6(e)) | 40,632 | - | 42,122 | - | 46,738 | - | ||||||||||||||||||
1600 | Property, plant and equipment (notes 6(f), 8 and 9) | 8,498,907 | 25 | 7,775,916 | 23 | 8,180,224 | 25 | ||||||||||||||||||
1755 | Right-of-use assets (notes 6(g), 7 and 8) | 291,487 | 1 | 298,313 | 1 | 351,909 | 1 | ||||||||||||||||||
1780 | Intangible assets (note 6(i)) | 9,433 | - | 9,052 | - | 9,035 | - | ||||||||||||||||||
1840 | Deferred tax assets | 373,921 | 1 | 371,093 | 1 | 323,937 | 1 | ||||||||||||||||||
1900 | Other non-current assets (notes 6(h), 7 and 8) | 3,435,176 | 10 | 3,540,444 | 11 | 3,131,537 | 9 | ||||||||||||||||||
Total non-current assets | 12,686,688 | 37 | 12,073,219 | 36 | 12,075,808 | 36 |
Total assets | $ | 34,179,592 100 | 33,379,640 100 | 33,554,398 100 | ||||||||
Liabilities and Equity
Current liabilities:
2100 Short-term borrowings (note 6(j))
2110 Short-term notes and bills payable (note 6(j))
2170 Accounts payable
2216 Dividends payable (notes 6(o) and 7)
2219 Other payables (note 6(r))
2230 Current tax liabilities
2250 Current provisions
2280 Current lease liabilities (notes 6(l) and 7)
2320 Long-term liabilities, current portion (notes 6(k) and 8)
2399 Other current liabilities (note 6(s))
Total current liabilities
Non-current liabilities:
2540 Long-term borrowings (notes 6(k) and 8)
2570 Deferred tax liabilities
2580 Non-current lease liabilities (notes 6(l) and 7)
2645 Guarantee deposits received
Total non-current liabilities Total liabilities
Equity attributable to owners of parent (notes 6(b), (o) and (q)):
3100 Ordinary shares
3200 Capital surplus
3300 Retained earnings
3400 Other equity interest
Total equity
Total liabilities and equity
$
$
March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||
2,787,215 | 8 | 2,646,225 | 8 | 2,385,759 | 7 | |||||||||||||||||
- | - | - | - | 149,964 | - | |||||||||||||||||
5,299,572 | 16 | 5,991,383 | 18 | 5,755,485 | 17 | |||||||||||||||||
544,436 | 2 | - | - | 1,088,872 | 3 | |||||||||||||||||
983,272 | 3 | 1,178,211 | 4 | 1,096,156 | 4 | |||||||||||||||||
425,971 | 1 | 326,845 | 1 | 515,603 | 3 | |||||||||||||||||
3,568 | - | 3,429 | - | 11,112 | - | |||||||||||||||||
64,419 | - | 61,884 | - | 62,890 | - | |||||||||||||||||
344,680 | 1 | 274,947 | 1 | 17,171 | - | |||||||||||||||||
28,646 | - | 56,909 | - | 19,351 | - | |||||||||||||||||
10,481,779 | 31 | 10,539,833 | 32 | 11,102,363 | 34 | |||||||||||||||||
2,766,350 | 8 | 2,346,190 | 7 | 2,498,072 | 7 | |||||||||||||||||
802,705 | 2 | 800,758 | 2 | 460,976 | 1 | |||||||||||||||||
200,470 | 1 | 210,116 | 1 | 259,253 | 1 | |||||||||||||||||
51,014 | - | 42,895 | - | 33,766 | - | |||||||||||||||||
3,820,539 | 11 | 3,399,959 | 10 | 3,252,067 | 9 | |||||||||||||||||
14,302,318 | 42 | 13,939,792 | 42 | 14,354,430 | 43 | |||||||||||||||||
3,629,572 | 10 | 3,629,572 | 11 | 3,629,572 | 11 | |||||||||||||||||
9,217,818 | 27 | 9,214,696 | 28 | 9,205,546 | 27 | |||||||||||||||||
6,757,894 | 20 | 7,148,718 | 21 | 6,546,197 | 20 | |||||||||||||||||
271,990 | 1 | (553,138) | (2) | (181,347) | (1) | |||||||||||||||||
19,877,274 | 58 | 19,439,848 | 58 | 19,199,968 | 57 | |||||||||||||||||
34,179,592 | 100 | 33,379,640 | 100 | 33,554,398 | 100 | |||||||||||||||||
See accompanying notes to consolidated financial statements.
5
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
ITEQ CORPORATION AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the three months ended March 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)
For the three months ended March 31
2024 | 2023 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
4000 | Operating revenue (note 6(s)) | $ | 6,154,685 | 100 | 6,259,655 | 100 | ||||||||||
5000 | Operating costs (notes (d), (f), (l), (m), (r), 7 and 12) | 5,370,621 | 87 | 5,589,786 | 89 | |||||||||||
Gross profit from operations | 784,064 | 13 | 669,869 | 11 | ||||||||||||
Operating expenses (notes 6(c), (f), (l), (m), (q), (r), 7 and 12): | ||||||||||||||||
6100 | Selling expenses | 193,552 | 3 | 198,291 | 3 | |||||||||||
6200 | Administrative expenses | 199,382 | 4 | 221,990 | 4 | |||||||||||
6300 | Research and development expenses | 138,546 | 2 | 125,223 | 2 | |||||||||||
6450 | Expected credit loss (gain) | 6,136 | - | (3,603) | - | |||||||||||
Total operating expenses | 537,616 | 9 | 541,901 | 9 | ||||||||||||
Net operating income | 246,448 | 4 | 127,968 | 2 | ||||||||||||
Non-operating income and expenses (notes 6(b), (e), (f), (l), (t), (u) and 7): | ||||||||||||||||
7100 | Interest income | 14,916 | - | 12,485 | - | |||||||||||
7060 | Share of loss of associates and joint ventures accounted for using equity method | (1,490) | - | (865) | - | |||||||||||
7010 | Other income | 44,079 | 1 | 14,332 | - | |||||||||||
7020 | Other gains and losses | 6,522 | - | 11,762 | - | |||||||||||
7050 | Finance costs | (39,065) | - | (31,547) | - | |||||||||||
Total non-operating income and expenses | 24,962 | 1 | 6,167 | - | ||||||||||||
7900 | Profit before tax | 271,410 | 5 | 134,135 | 2 | |||||||||||
7950 | Tax expenses (note 6(n)) | 117,798 | 2 | 60,152 | 1 | |||||||||||
Profit | 153,612 | 3 | 73,983 | 1 | ||||||||||||
8300 | Other comprehensive income (notes 6(b), (o) and (u)): | |||||||||||||||
8310 | Components of other comprehensive income that will not be reclassified to profit or loss | |||||||||||||||
8316 | Unrealized gains (losses) from investments in equity instruments measured at fair value through other | 853 | - | (256) | - | |||||||||||
comprehensive income | ||||||||||||||||
8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or | |||||||||||||||
loss | - | - | - | - | ||||||||||||
Total components of other comprehensive income that will not be reclassified to profit or loss | 853 | - | (256) | - | ||||||||||||
8360 | Components of other comprehensive income that will be reclassified to profit or loss | |||||||||||||||
8361 | Exchange differences on translation of foreign financial statements | 824,275 | 13 | 100,247 | 2 | |||||||||||
8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss | - | - | - | - | |||||||||||
Total components of other comprehensive income that will be reclassified to profit or loss | 824,275 | 13 | 100,247 | 2 | ||||||||||||
8300 | Other comprehensive income (net of tax) | 825,128 | 13 | 99,991 | 2 | |||||||||||
Total comprehensive income | $ | 978,740 | 16 | 173,974 | 3 | |||||||||||
Profit attributable to: | ||||||||||||||||
Owners of parent | $ | 153,612 | 3 | 73,983 | 1 | |||||||||||
Comprehensive income attributable to: | ||||||||||||||||
Owners of parent | $ | 978,740 | 16 | 173,974 | 3 | |||||||||||
Basic earnings per share (expressed in New Taiwan dollars) (note 6(p)) | $ | 0.42 | 0.20 | |||||||||||||
Diluted earnings per share (expressed in New Taiwan dollars) (note 6(p)) | $ | |||||||||||||||
0.42 | 0.20 | |||||||||||||||
See accompanying notes to consolidated financial statements.
6
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
ITEQ CORPORATION AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the three months ended March 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
Retained earnings | Other equity | |||||||||||||||||||||||||||||||||||||
Exchange | Unrealized gains | |||||||||||||||||||||||||||||||||||||
differences on | (losses) on financial | |||||||||||||||||||||||||||||||||||||
translation of | assets measured at fair | |||||||||||||||||||||||||||||||||||||
Ordinary | Capital | Legal | Special | Unappropriated | foreign financial | value through other | ||||||||||||||||||||||||||||||||
Balance on January 1, 2023 | shares | surplus | reserve | reserve | retained earnings | Total | statements | comprehensive income | Total | Total equity | ||||||||||||||||||||||||||||
$ | 3,629,572 | 9,201,666 | 2,199,863 | 514,181 | 4,847,042 | 7,561,086 | (274,855) | (6,483) | (281,338) | 20,110,986 | ||||||||||||||||||||||||||||
Profit | - | - | - | - | 73,983 | 73,983 | - | - | - | 73,983 | ||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | - | - | - | 100,247 | (256) | 99,991 | 99,991 | ||||||||||||||||||||||||||||
Total comprehensive income | - | - | - | - | 73,983 | 73,983 | 100,247 | (256) | 99,991 | 173,974 | ||||||||||||||||||||||||||||
Appropriation and distribution of retained earnings: | ||||||||||||||||||||||||||||||||||||||
Cash dividends of ordinary shares | - | - | - | - | (1,088,872) | (1,088,872) | - | - | - | (1,088,872) | ||||||||||||||||||||||||||||
Share-based payments | - | 3,880 | - | - | - | - | - | - | - | 3,880 | ||||||||||||||||||||||||||||
Balance on March 31, 2023 | $ | 3,629,572 | 9,205,546 | 2,199,863 | 514,181 | 3,832,153 | 6,546,197 | (174,608) | (6,739) | (181,347) | 19,199,968 | |||||||||||||||||||||||||||
Balance on January 1,2024 | ||||||||||||||||||||||||||||||||||||||
$ | 3,629,572 | 9,214,696 | 2,316,563 | 281,338 | 4,550,817 | 7,148,718 | (555,434) | 2,296 | (553,138) | 19,439,848 | ||||||||||||||||||||||||||||
Profit | - | - | - | - | 153,612 | 153,612 | - | - | - | 153,612 | ||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | - | - | - | 824,275 | 853 | 825,128 | 825,128 | ||||||||||||||||||||||||||||
Total comprehensive income | - | - | - | - | 153,612 | 153,612 | 824,275 | 853 | 825,128 | 978,740 | ||||||||||||||||||||||||||||
Appropriation and distribution of retained earnings: | ||||||||||||||||||||||||||||||||||||||
Cash dividends of ordinary share | - | - | - | - | (544,436) | (544,436) | - | - | - | (544,436) | ||||||||||||||||||||||||||||
Share-based payments | - | 3,122 | - | - | - | - | - | - | - | 3,122 | ||||||||||||||||||||||||||||
Balance on March 31, 2024 | $ | 3,629,572 | 9,217,818 | 2,316,563 | 281,338 | 4,159,993 | 6,757,894 | 268,841 | 3,149 | 271,990 | 19,877,274 | |||||||||||||||||||||||||||
See accompanying notes to consolidated financial statements.
7
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
ITEQ CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the three months ended March 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
For the three months ended March 31 | |||||
2024 | 2023 | ||||
Cash flows from (used in) operating activities: | |||||
Profit before tax | $ | 271,410 | 134,135 | ||
Adjustments: | |||||
Adjustments to reconcile profit (loss): | |||||
Depreciation expense | 313,894 | 274,570 | |||
Amortization expense | 26,534 | 22,393 | |||
Expected credit loss (gain) | 6,136 | (3,603) | |||
Net losses on financial assets or liabilities at fair value through profit or loss | 88 | 6,048 | |||
Interest expense | 39,065 | 31,547 | |||
Interest income | (14,916) | (12,485) | |||
Share-based payments | 3,122 | 3,880 | |||
Share of loss of associates and joint ventures accounted for using equity method | 1,490 | 865 | |||
Losses (gains) on disposal of property, plant and equipment | (8,860) | 1,032 | |||
Losses on valuation of inventories | 42,317 | 23,681 | |||
Reversal of losses on impairment of property, plant and equipment | - | (738) | |||
Other adjustments | - | (3,509) | |||
Total adjustments to reconcile profit (loss) | 408,870 | 343,681 | |||
Changes in operating assets and liabilities: | |||||
Changes in operating assets: | |||||
Notes receivable | (973,575) | 110,619 | |||
Accounts receivable | 1,029,645 | 221,426 | |||
Other receivable | (26,162) | 12,140 | |||
Inventories | 11,559 | 130,130 | |||
Other current assets | 132,930 | (108,258) | |||
Total changes in operating assets | 174,397 | 366,057 | |||
Changes in operating liabilities: | |||||
Financial liabilities held for trading | - | (14,228) | |||
Accounts payable | (910,685) | (123,789) | |||
Other payable | (103,626) | (164,038) | |||
Other current liabilities | (30,182) | (40,248) | |||
Total changes in operating liabilities | (1,044,493) | (342,303) | |||
Total changes in operating assets and liabilities | (870,096) | 23,754 | |||
Total adjustments | (461,226) | 367,435 | |||
Cash (outflow) inflow generated from operations | (189,816) | 501,570 | |||
Interest paid | (39,785) | (33,641) | |||
Income taxes paid | (24,237) | (104,960) | |||
Cash flows from (used in) operating activities | |||||
(253,838) | 362,969 | ||||
Cash flows from (used in) investing activities: | |||||
Acquisition of financial assets at amortised cost | (57,552) | (88,624) | |||
Proceeds from repayments of financial assets at amortised cost | 88,542 | - | |||
Acquisition of property, plant and equipment | (209,115) | (734,653) | |||
Proceeds from disposal of property, plant and equipment | 12,649 | - | |||
Decrease in refundable deposits | 351 | 16,682 | |||
Decrease (increase) in other non-current assets | (73,395) | 75,009 | |||
Increase in prepayments for business facilities | (433,244) | (163,875) | |||
Interest received | 14,631 | 12,203 | |||
Net cash used in investing activities | (657,133) | (883,258) | |||
Cash flows from (used in) financing activities: | |||||
Increase (decrease) in short-term borrowings | 132,618 | (72,432) | |||
Proceeds from long-term borrowings | 450,000 | 3,424,382 | |||
Repayments of long-term borrowings | (17,155) | (2,600,000) | |||
Increase (decrease) in guarantee deposits received | 6,257 | (3,895) | |||
Payment of lease liabilities | (15,650) | (15,946) | |||
Net cash flows from financing activities | 556,070 | 732,109 | |||
Effect of exchange rate changes on cash and cash equivalents | 178,416 | 255,147 | |||
Net (decrease) increase in cash and cash equivalents | (176,485) | 466,967 | |||
Cash and cash equivalents at beginning of period | 5,594,270 | 5,213,819 | |||
Cash and cash equivalents at ending of period | $ | 5,417,785 | 5,680,786 | ||
See accompanying notes to consolidated financial statements.
8
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
ITEQ CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
March 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
(1) Company history
ITEQ Corp. (the " Company" ) was incorporated on April 10, 1997. ITEQ Corp. and subsidiaries (the Group) engages in the manufacturing and sales of mass lamination boards, copper clad laminates, prepreg products, electronic components, as well as the import and export trade of manufacturing equipment for the aforementioned products.
(2) Approval date and procedures of the consolidated financial statements:
These consolidated financial statements were authorized for issue by the Board of Directors on May 6, 2024.
- New standards, amendments and interpretations adopted:
-
The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission ("FSC"), R.O.C. which have already been adopted.
The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2024: - Amendments to IAS 1 "Classification of Liabilities as Current or Non-current"
- Amendments to IAS 1 "Non-current Liabilities with Covenants"
- Amendments to IAS 7 and IFRS 7 "Supplier Finance Arrangements"
- Amendments to IFRS 16 "Lease Liability in a Sale and Leaseback"
- The impact of IFRS issued by IASB but not yet endorsed by the FSC
-
The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission ("FSC"), R.O.C. which have already been adopted.
The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:
Standards or | Effective date per | |||||||
Interpretations | Content of amendment | IASB | ||||||
IFRS 18 "Presentation and | The | new | standard introduces three | January 1, 2027 | ||||
Disclosure in Financial | categories of income and expenses, two | |||||||
Statements" | income statement subtotals and one single | |||||||
note | on | management | performance | |||||
measures. | The | three | amendments, | |||||
combined with enhanced guidance on how |
to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.
(Continued)
9
ITEQ CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
Standards or | Effective date per | ||||||||
Interpretations | Content of amendment | IASB | |||||||
IFRS 18 "Presentation and | ● | A more structured | income | statement: | January 1, 2027 | ||||
Disclosure in Financial | under current standards, companies use | ||||||||
Statements" | different formats to present their results, | ||||||||
making it difficult for investors to | |||||||||
compare financial | performance across | ||||||||
companies. The new standard promotes | |||||||||
a more structured income statement, | |||||||||
introducing a newly defined ' operating | |||||||||
profit' subtotal and a requirement for all | |||||||||
income and expenses to be allocated | |||||||||
between three new distinct categories | |||||||||
based on a company' s main business | |||||||||
activities. | |||||||||
● | Management | performance | measures | ||||||
(MPMs): the new standard introduces a | |||||||||
definition for management performance | |||||||||
measures, and requires companies to | |||||||||
explain in a single note to the financial | |||||||||
statements why the measure provides | |||||||||
useful information, how it is calculated | |||||||||
and reconcile it to an amount | |||||||||
determined | under | IFRS | Accounting | ||||||
Standards. | |||||||||
● | Greater disaggregation of information: | ||||||||
the new standard | includes | enhanced |
guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.
The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.
(Continued)