MICROELECTRONICS TECHNOLOGY,
INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REVIEW REPORT
JUNE 30, 2024 AND 2023
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For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.
~1~
INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE
To the Board of Directors and Shareholders of MICROELECTRONICS TECHNOLOGY, INC.
Introduction
We have reviewed the accompanying consolidated balance sheets of Microelectronics Technology Inc. and subsidiaries (the "Group") as at June 30, 2024 and 2023, and the related consolidated statements of comprehensive income for the three months and six months then ended, as well as the consolidated statements of changes in equity and of cash flows for the six months then ended, 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
We conducted our reviews in accordance with the Standard on Review Engagement 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.
~2~
Conclusion
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 June 30, 2024 and 2023, and of its consolidated financial performance for the three months and six months then ended and its consolidated cash flows for the six months then ended 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.
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The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.
As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
~3~
MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023
(Expressed in thousands of New Taiwan dollars)
June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||||||||||||||
Assets | Notes | AMOUNT | % | AMOUNT | % | AMOUNT | % | |||||||||||||
Current assets | ||||||||||||||||||||
1100 | Cash and cash equivalents | 6(1) | $ | 550,605 | 12 | $ | 978,354 | 18 | $ | 911,423 | 15 | |||||||||
1110 | Financial assets at fair value | 6(2) | ||||||||||||||||||
through profit or loss - current | 4,563 | - | 14,707 | - | - | - | ||||||||||||||
1136 | Financial assets at amortised cost - | 6(4) and 8 | ||||||||||||||||||
current | 44,121 | 1 | 32,215 | 1 | 34,132 | 1 | ||||||||||||||
1150 | Notes receivable | 6(5) | 1,396 | - | 378 | - | 8,167 | - | ||||||||||||
1170 | Accounts receivable, net | 6(5) | 606,853 | 13 | 652,453 | 12 | 1,135,116 | 18 | ||||||||||||
1180 | Accounts receivable - related | 6(5) and 7 | ||||||||||||||||||
parties | 739 | - | 22,759 | - | 9,790 | - | ||||||||||||||
1200 | Other receivables | 1,831 | - | 12,212 | - | 18,618 | - | |||||||||||||
1210 | Other receivables - related parties | 7 | 219 | - | 399 | - | 268 | - | ||||||||||||
130X | Inventories | 6(6) | 1,478,898 | 32 | 1,764,515 | 32 | 1,944,757 | 32 | ||||||||||||
1410 | Prepayments | 49,811 | 1 | 51,801 | 1 | 75,169 | 1 | |||||||||||||
11XX | Total current assets | |||||||||||||||||||
2,739,036 | 59 | 3,529,793 | 64 | 4,137,440 | 67 | |||||||||||||||
Non-current assets | ||||||||||||||||||||
1510 | Financial assets at fair value | 6(2) | ||||||||||||||||||
through profit or loss-non-current | 103,662 | 2 | 97,540 | 2 | 94,658 | 2 | ||||||||||||||
1517 | Financial assets at fair value | 6(3) | ||||||||||||||||||
through other comprehensive | ||||||||||||||||||||
income-non-current | 141,470 | 3 | 150,151 | 3 | 134,378 | 2 | ||||||||||||||
1600 | Property, plant and equipment | 6(7) and 8 | 542,619 | 12 | 576,849 | 11 | 609,755 | 10 | ||||||||||||
1755 | Right-of-use assets | 6(8) and 7 | 362,899 | 8 | 395,585 | 7 | 407,201 | 7 | ||||||||||||
1780 | Intangible assets | 6(9)(10) | 318,426 | 7 | 308,455 | 6 | 309,940 | 5 | ||||||||||||
1840 | Deferred income tax assets | 6(29) | 394,718 | 9 | 409,126 | 7 | 442,065 | 7 | ||||||||||||
1900 | Other non-current assets | 7 | 11,202 | - | 10,902 | - | 22,861 | - | ||||||||||||
15XX | Tatal non-current assets | |||||||||||||||||||
1,874,996 | 41 | 1,948,608 | 36 | 2,020,858 | 33 | |||||||||||||||
1XXX | Total Assets | |||||||||||||||||||
$ | 4,614,032 | 100 | $ | 5,478,401 | 100 | $ | 6,158,298 | 100 | ||||||||||||
(Continued)
~4~
MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023
(Expressed in thousands of New Taiwan dollars)
June 30, 2024 | December 31, 2023 | June 30, 2023 | |||||||||||||||||||
Liabilities and Equity | Notes | AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||
Current Liabilities | |||||||||||||||||||||
2100 | Short-term borrowings | 6(11) | $ | 1,445,015 | 31 | $ | 1,558,107 | 28 | $ | 1,655,395 | 27 | ||||||||||
2120 | Financial liabilities at fair value | 6(12) | |||||||||||||||||||
through profit or loss - current | - | - | - | - | 502 | - | |||||||||||||||
2130 | Current contract liabilities | 6(22) | 14,947 | - | 11,555 | - | 15,548 | - | |||||||||||||
2170 | Accounts payable | 218,063 | 5 | 387,944 | 7 | 866,258 | 14 | ||||||||||||||
2180 | Accounts payable - related parties | 7 | - | - | 3,943 | - | 1,178 | - | |||||||||||||
2200 | Other payables | 6(13) | 175,082 | 4 | 223,861 | 4 | 257,273 | 4 | |||||||||||||
2230 | Current income tax liabilities | 1,386 | - | 1,917 | - | 850 | - | ||||||||||||||
2250 | Provisions for liabilities - current | 6(17) | 24,221 | - | 35,292 | 1 | 39,965 | 1 | |||||||||||||
2280 | Current lease liabilities | 7 | 129,706 | 3 | 97,508 | 2 | 63,945 | 1 | |||||||||||||
2320 | Long-term liabilities, current | 6(14) and 8 | |||||||||||||||||||
portion | 394,988 | 9 | 456,124 | 8 | 366,311 | 6 | |||||||||||||||
2399 | Other current liabilities | 32,336 | 1 | 33,472 | 1 | 30,347 | 1 | ||||||||||||||
21XX | Total current liabilities | 2,435,744 | 53 | 2,809,723 | 51 | 3,297,572 | 54 | ||||||||||||||
Non-current liabilities | |||||||||||||||||||||
2540 | Long-term loans | 6(14) and 8 | 125,068 | 3 | 252,534 | 5 | 405,439 | 6 | |||||||||||||
2550 | Provisions for liabilities - non- | 6(17) | |||||||||||||||||||
current | 493 | - | 3,786 | - | 9,075 | - | |||||||||||||||
2570 | Deferred income tax liabilities | 6(29) | 109,657 | 2 | 110,570 | 2 | 98,484 | 2 | |||||||||||||
2580 | Non-current lease liabilities | 7 | 291,370 | 6 | 324,744 | 6 | 334,864 | 5 | |||||||||||||
2600 | Other non-current liabilities | 6(15) | 90,818 | 2 | 95,025 | 2 | 100,884 | 2 | |||||||||||||
25XX | Total non-current liabilities | 617,406 | 13 | 786,659 | 15 | 948,746 | 15 | ||||||||||||||
2XXX | Total Liabilities | 3,053,150 | 66 | 3,596,382 | 66 | 4,246,318 | 69 | ||||||||||||||
Equity | |||||||||||||||||||||
Equity attributable to owners of | |||||||||||||||||||||
parent | |||||||||||||||||||||
Share capital | 6(18) | ||||||||||||||||||||
3110 | Share capital-common stock | 2,520,283 | 55 | 2,520,283 | 46 | 2,380,283 | 39 | ||||||||||||||
Capital Reserves | 6(19) | ||||||||||||||||||||
3200 | Capital surplus | 1,091,896 | 24 | 1,091,896 | 20 | 830,132 | 13 | ||||||||||||||
Retained Earnings | 6(20) | ||||||||||||||||||||
3310 | Legal reserve | 24,972 | - | 24,972 | - | 24,972 | - | ||||||||||||||
3320 | Special reserve | 193,426 | 4 | 193,426 | 4 | 193,426 | 3 | ||||||||||||||
3350 | Accumulated deficit | ( | 2,009,248)( | 44)( | 1,636,605)( | 30)( | 1,189,129)( | 19) | |||||||||||||
Other Equity Interest | 6(21) | ||||||||||||||||||||
3400 | Other equity interest | ( | 260,447)( | 5)( | 311,953)( | 6)( | 327,704)( | 5) | |||||||||||||
31XX | Equity attributable to owners | ||||||||||||||||||||
of the parent | 1,560,882 | 34 | 1,882,019 | 34 | 1,911,980 | 31 | |||||||||||||||
3XXX | Total equity | 1,560,882 | 34 | 1,882,019 | 34 | 1,911,980 | 31 | ||||||||||||||
Significant contingent liabilities and | 9 | ||||||||||||||||||||
unrecognised contract commitments | |||||||||||||||||||||
Significant events after the balance | 11 | ||||||||||||||||||||
sheet date | |||||||||||||||||||||
3X2X | Total Liabilities and Equity | $ | 4,614,032 | 100 | $ | 5,478,401 | 100 | $ | 6,158,298 | 100 |
The accompanying notes are an integral part of these consolidated financial statements.
~5~
MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars)
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
Items | Notes | AMOUNT | % | AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||||||||||
4000 | Operating revenue | 6(22) and 7 | $ | 501,439 | 100 | $ | 1,038,360 | 100 | $ | 932,460 | 100 | $ | 2,241,984 | 100 | |||||||||||||||||
5000 | Operating costs | 6(6)(27) and 7 ( | 496,239) ( | 99) | ( | 897,808) | ( | 87) | ( | 894,846) | ( | 96) | ( | 1,894,237) | ( | 84) | |||||||||||||||
5900 | Gross profit | ||||||||||||||||||||||||||||||
5,200 | 1 | 140,552 | 13 | 37,614 | 4 | 347,747 | 16 | ||||||||||||||||||||||||
Operating expenses | 6(27)(28) and | ||||||||||||||||||||||||||||||
7 | |||||||||||||||||||||||||||||||
6100 | Selling expenses | ( | 21,271) ( | 4) | ( | 29,561) | ( | 3) | ( | 43,248) | ( | 4) | ( | 67,317) | ( | 3) | |||||||||||||||
6200 | General and administrative | ||||||||||||||||||||||||||||||
expenses | ( | 31,542) ( | 6) | ( | 35,564) | ( | 3) | ( | 62,090) | ( | 7) | ( | 71,645) | ( | 3) | ||||||||||||||||
6300 | Research and development | ||||||||||||||||||||||||||||||
expenses | ( | 132,123) ( | 27) | ( | 167,750) | ( | 16) | ( | 277,526) | ( | 30) | ( | 344,136) | ( | 16) | ||||||||||||||||
6450 | Loss on expected credit | ||||||||||||||||||||||||||||||
impairment | ( | 79) | - | ( | 347) | - | ( | 79) | - | ( | 352) | - | |||||||||||||||||||
6000 | Total operating expenses | ||||||||||||||||||||||||||||||
( | 185,015) ( | 37) | ( | 233,222) | ( | 22) | ( | 382,943) | ( | 41) | ( | 483,450) | ( | 22) | |||||||||||||||||
6900 | Operating loss | ||||||||||||||||||||||||||||||
( | 179,815) ( | 36) | ( | 92,670) | ( | 9) | ( | 345,329) | ( | 37) | ( | 135,703) | ( | 6) | |||||||||||||||||
Non-operating income and | |||||||||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||||||||
7100 | Interest income | 6(23) | 4,357 | 1 | 3,604 | 1 | 6,510 | 1 | 4,862 | - | |||||||||||||||||||||
7010 | Other income | 6(24) | 751 | - | 3,235 | - | 1,920 | - | 4,397 | - | |||||||||||||||||||||
7020 | Other gains and losses | 6(25) | 3,632 | 1 | ( | 3,499) | - | 7,816 | 1 | 717 | - | ||||||||||||||||||||
7050 | Finance costs | 6(26) and 7 | ( | 17,927) ( | 4) | ( | 19,990) | ( | 2) | ( | 37,392) | ( | 4) | ( | 38,667) | ( | 1) | ||||||||||||||
7000 | Total non-operating income | ||||||||||||||||||||||||||||||
and expenses | ( | 9,187) ( | 2) | ( | 16,650) | ( | 1) | ( | 21,146) | ( | 2) | ( | 28,691) | ( | 1) | ||||||||||||||||
7900 | Loss before income tax | ||||||||||||||||||||||||||||||
( | 189,002) ( | 38) | ( | 109,320) | ( | 10) | ( | 366,475) | ( | 39) | ( | 164,394) | ( | 7) | |||||||||||||||||
7950 | Income tax expense | 6(29) | ( | 3,415) | - | ( | 7,813) | ( | 1) | ( | 6,168) | ( | 1) | ( | 15,559) | ( | 1) | ||||||||||||||
8200 | Loss for the period | ||||||||||||||||||||||||||||||
( $ | 192,417) ( | 38) | ( $ | 117,133) | ( | 11) | ( $ | 372,643) | ( | 40) | ( $ | 179,953) | ( | 8) | |||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||
(loss) | |||||||||||||||||||||||||||||||
Components of other | |||||||||||||||||||||||||||||||
comprehensive loss that will not | |||||||||||||||||||||||||||||||
be reclassified to profit or loss | |||||||||||||||||||||||||||||||
8316 | Unrealised gain (loss) from | 6(3)(21) | |||||||||||||||||||||||||||||
financial assets measured at | |||||||||||||||||||||||||||||||
fair value through other | |||||||||||||||||||||||||||||||
comprehensive income | ( $ | 117) | - | $ | 19,623 | 2 | ( $ | 15,567) | ( | 1) | $ | 24,517 | 1 | ||||||||||||||||||
Components of other | |||||||||||||||||||||||||||||||
comprehensive income that will | |||||||||||||||||||||||||||||||
be reclassified to profit or loss | |||||||||||||||||||||||||||||||
8361 | Currency translation | 6(21) | |||||||||||||||||||||||||||||
differences of foreign | |||||||||||||||||||||||||||||||
operations | 18,656 | 4 | ( | 14,056) | ( | 1) | 83,841 | 9 | ( | 12,735) | - | ||||||||||||||||||||
8399 | Income tax relating to the | 6(21)(29) | |||||||||||||||||||||||||||||
components of other | |||||||||||||||||||||||||||||||
comprehensive income that | |||||||||||||||||||||||||||||||
will be reclassified to profit or | |||||||||||||||||||||||||||||||
loss | ( | 3,731) ( | 1) | 2,811 | - | ( | 16,768) | ( | 2) | 2,547 | - | ||||||||||||||||||||
8300 | Total other comprehensive | ||||||||||||||||||||||||||||||
income for the period | $ | 14,808 | 3 | $ | 8,378 | 1 | $ | 51,506 | 6 | $ | 14,329 | 1 | |||||||||||||||||||
8500 | Total comprehensive loss for the | ||||||||||||||||||||||||||||||
period | ( $ | 177,609) ( | 35) | ( $ | 108,755) | ( | 10) | ( $ | 321,137) | ( | 34) | ( $ | 165,624) | ( | 7) | ||||||||||||||||
Loss attributable to: | |||||||||||||||||||||||||||||||
8610 | Owners of the parent | ( $ | 192,417) ( | 38) | ( $ | 117,133) | ( | 11) | ( $ | 372,643) | ( | 40) | ( $ | 179,953) | ( | 8) | |||||||||||||||
Comprehensive loss attributable | |||||||||||||||||||||||||||||||
to: | |||||||||||||||||||||||||||||||
8710 | Owners of the parent | ( $ | 177,609) ( | 35) | ( $ | 108,755) | ( | 10) | ( $ | 321,137) | ( | 34) | ( $ | 165,624) | ( | 7) | |||||||||||||||
Loss per share ( in dollars ) | 6(30) | ||||||||||||||||||||||||||||||
9750 | Basic | ( $ | 0.76) | ( $ | 0.49) | ( $ | 1.48) | ( $ | 0.76) | ||||||||||||||||||||||
9850 | Diluted | ||||||||||||||||||||||||||||||
( $ | 0.76) | ( $ | 0.49) | ( $ | 1.48) | ( $ | 0.76) | ||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
~6~
MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
SIX MONTHS ENDED JUNE 30, 2024 AND 2023(Expressed in thousands of New Taiwan dollars)
Equity attributable to owners of the parent | ||||||||||||||||||||||||||||||||||||||||
Retained earnings | Other equity interest | |||||||||||||||||||||||||||||||||||||||
Unrealised gains | ||||||||||||||||||||||||||||||||||||||||
(losses) from | ||||||||||||||||||||||||||||||||||||||||
financial assets | ||||||||||||||||||||||||||||||||||||||||
Exchange | measured at fair | |||||||||||||||||||||||||||||||||||||||
differences on | value through | |||||||||||||||||||||||||||||||||||||||
Capital surplus, | translation of | other | ||||||||||||||||||||||||||||||||||||||
Share capital- | additional paid- | Accumulated | foreign financial | comprehensive | ||||||||||||||||||||||||||||||||||||
Notes | common stock | in capital | Legal reserve | Special reserve | deficit | statements | income | Total equity | ||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | 2,380,283 | $ | 830,132 | $ | 24,972 | $ | 193,426 | ($ | 1,009,176) | ($ | 73,963) | ($ | 268,070) | $ | 2,077,604 | ||||||||||||||||||||||||
Loss for the period | ||||||||||||||||||||||||||||||||||||||||
- | - | - | - | ( | 179,953) | - | - | ( | 179,953) | |||||||||||||||||||||||||||||||
Other comprehensive income | 6(3)(21) | |||||||||||||||||||||||||||||||||||||||
(loss) for the period | - | - | - | - | - | ( | 10,188) | 24,517 | 14,329 | |||||||||||||||||||||||||||||||
Total comprehensive (loss) income | ||||||||||||||||||||||||||||||||||||||||
- | - | - | - | ( | 179,953) | ( | 10,188) | 24,517 | ( | 165,624) | ||||||||||||||||||||||||||||||
Balance at June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||
$ | 2,380,283 | $ | 830,132 | $ | 24,972 | $ | 193,426 | ($ | 1,189,129) | ($ | 84,151) | ($ | 243,553) | $ | 1,911,980 | |||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2024 | $ | 2,520,283 | $ | 1,091,896 | $ | 24,972 | $ | 193,426 | ($ | 1,636,605) | ($ | 86,128) | ($ | 225,825) | $ | 1,882,019 | ||||||||||||||||||||||||
Loss for the period | ||||||||||||||||||||||||||||||||||||||||
- | - | - | - | ( | 372,643) | - | - | ( | 372,643) | |||||||||||||||||||||||||||||||
Other comprehensive income | 6(3)(21) | |||||||||||||||||||||||||||||||||||||||
(loss) for the period | - | - | - | - | - | 67,073 | ( | 15,567) | 51,506 | |||||||||||||||||||||||||||||||
Total comprehensive (loss) income | ||||||||||||||||||||||||||||||||||||||||
- | - | - | - | ( | 372,643) | 67,073 | ( | 15,567) | ( | 321,137) | ||||||||||||||||||||||||||||||
Balance at June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
$ | 2,520,283 | $ | 1,091,896 | $ | 24,972 | $ | 193,426 | ($ | 2,009,248) | ($ | 19,055) | ($ | 241,392) | $ | 1,560,882 | |||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
~7~
MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2024 AND 2023(Expressed in thousands of New Taiwan dollars)
Six months ended June 30 | |||||||||
Notes | 2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Loss before tax | ( $ | 366,475 ) | ( $ | 164,394 ) | |||||
Adjustments | |||||||||
Adjustments to reconcile profit (loss) | |||||||||
Loss on expected credit impairment | 79 | 352 | |||||||
Depreciation | 6(7)(8)(27) | 96,555 | 95,541 | ||||||
Amortization | 6(9)(27) | 16,176 | 18,928 | ||||||
Net gain on financial assets at fair value through profit or loss | 6(2)(25) | ( | 3,239 ) | ( | 6,135 ) | ||||
Net loss on financial liabilities at fair value through profit or | 6(12)(25) | ||||||||
loss | - | 282 | |||||||
Interest income | 6(23) | ( | 6,510 ) | ( | 4,862 ) | ||||
Interest expense | 6(26) | 37,392 | 38,667 | ||||||
Gain on disposal of property, plant and equipment | 6(25) | ( | 207 ) | ( | 786 ) | ||||
Changes in operating assets and liabilities | |||||||||
Changes in operating assets | |||||||||
Notes receivable | ( | 1,018 ) | ( | 7,504 ) | |||||
Accounts receivable | 65,331 | ( | 249,866 ) | ||||||
Accounts receivable-related parties | 22,020 | 8,614 | |||||||
Other receivables | 10,108 | ( | 506 ) | ||||||
Other receivables-related parties | 180 | ( | 29 ) | ||||||
Inventories | 315,726 | 378,024 | |||||||
Prepayments | 3,477 | ( | 2,110 ) | ||||||
Changes in operating liabilities | |||||||||
Contract liabilities-current | 3,392 | ( | 30,619 ) | ||||||
Accounts payable | ( | 174,281 ) | ( | 69,493 ) | |||||
Accounts payable-related parties | ( | 3,192 ) | 6,772 | ||||||
Other payables | ( | 56,128 ) | ( | 47,149 ) | |||||
Provisions for liabilities | ( | 14,595 ) | 21,131 | ||||||
Other current liabilities | ( | 2,779 ) | ( | 4,250 ) | |||||
Othe non-current liabilities | ( | 6,160 ) | ( | 4,241 ) | |||||
Cash outflow generated from operations | |||||||||
( | 64,148 ) | ( | 23,633 ) | ||||||
Interest received | 6,956 | 4,690 | |||||||
Interest paid | ( | 39,333 ) | ( | 39,708 ) | |||||
Income taxes paid | ( | 4,441 ) | ( | 16,098 ) | |||||
Net cash flows used in operating activities | |||||||||
( | 100,966 ) | ( | 74,749 ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Proceeds from disposal of financial assets at fair value through | |||||||||
profit or loss | 12,816 | - | |||||||
(Increase) decrease in financial assets at amortized cost | ( | 9,857 ) | 989 | ||||||
Acquisition of financial assets at fair value through profit or loss | - | ( | 28,112 ) | ||||||
Acquisition of property, plant and equipment | 6(31) | ( | 6,551 ) | ( | 34,800 ) | ||||
Proceeds from disposal of property, plant and equipment | 226 | 786 | |||||||
Acquisition of intangible assets | 6(9) | ( | 17,884 ) | ( | 12,880 ) | ||||
Increase in guarantee deposits | ( | 210 ) | ( | 148 ) | |||||
Net cash flows used in investing activities | |||||||||
( | 21,460 ) | ( | 74,165 ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Increase in short-term borrowings | 6(32) | 669,509 | 1,196,117 | ||||||
Decrease in short-term borrowings | 6(32) | ( | 789,934 ) | ( | 1,096,229 ) | ||||
Increase in long-term borrowings | 6(32) | 100,000 | 37,000 | ||||||
Decrease in long-term borrowings | 6(32) | ( | 287,498 ) | ( | 133,074 ) | ||||
Repayment of principal portion of lease liabilities | 6(32) | ( | 7,074 ) | ( | 63,528 ) | ||||
Net cash flows used in financing activities | |||||||||
( | 314,997 ) | ( | 59,714 ) | ||||||
Effects due to changes in exchange rate | |||||||||
9,674 | ( | 4,350 ) | |||||||
Net decrease in cash and cash equivalents | |||||||||
( | 427,749 ) | ( | 212,978 ) | ||||||
Cash and cash equivalents at beginning of period | 6(1) | 978,354 | 1,124,401 | ||||||
Cash and cash equivalents at end of period | 6(1) | $ | 550,605 | $ | 911,423 |
The accompanying notes are an integral part of these consolidated financial statements.
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MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
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HISTORY AND ORGANISATION
Microelectronics Technology Inc. (the "Company") was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the "Group") are primarily engaged in the design, manufacture and sales of terrestrial microwave, satellite communication system products, and related customized products.
On January 1, 2011, the Company merged with the subsidiary, Global PCS Inc.. Under the merger, the Company was the surviving company while Global PCS Inc. was the dissolved company. - THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION
These consolidated financial statements were authorized for issuance by the Board of Directors on August 7, 2024. - APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
-
Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS®") Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission ("FSC")
New standards, interpretations and amendments endorsed by FSC and became effective from 2024 are as follows:
-
Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS®") Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission ("FSC")
Effective date by | |
International Accounting | |
New Standards, Interpretations and Amendments | Standards Board |
Amendments to IFRS 16, 'Lease liability in a sale and leaseback' | January 1, 2024 |
Amendments to IAS 1, 'Classification of liabilities as current or non- | January 1, 2024 |
current' | |
Amendments to IAS 1, 'Non-current liabilities with covenants' | January 1, 2024 |
Amendments to IAS 7 and IFRS 7, 'Supplier finance arrangements' | January 1, 2024 |
The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.
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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group
New standards, interpretations and amendments endorsed by the FSC effective from 2025 are as follows:
Effective date by | |
International Accounting | |
New Standards, Interpretations and Amendments | Standards Board |
Amendments to IAS 21, 'Lack of exchangeability' | January 1, 2025 |
The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.
(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:
Effective date by | |
International Accounting | |
New Standards, Interpretations and Amendments | Standards Board |
Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification | January 1, 2026 |
and measurement of financial Instruments' | |
Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets | To be determined by |
between an investor and its associate or joint venture' | International Accounting |
Standards Board | |
IFRS 17, 'Insurance contracts' | January 1, 2023 |
Amendments to IFRS 17, 'Insurance contracts' | January 1, 2023 |
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 - | January 1, 2023 |
comparative information' | |
IFRS 18, 'Presentation and disclosure in financial statements' | January 1, 2027 |
IFRS 19, 'Subsidiaries without public accountability: disclosures' | January 1, 2027 |
Annual Improvements to IFRS Accounting Standards-Volume 11 | January 1, 2026 |
Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.
IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management- defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2023, except for the compliance statement, basis of preparation and basis of consolidation as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
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