NANTEX INDUSTRY CO., LTD. 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 NANTEX INDUSTRY CO., LTD.
Introduction
We have reviewed the accompanying consolidated balance sheets of NANTEX INDUSTRY CO., LTD. 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 related 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
Except as explained in the following 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 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.
Basis for qualified conclusion
The financial statements and related information disclosed in Note 13 of an insignificant consolidated subsidiary, Nanmat Technology Co., Ltd., were not reviewed by independent auditors. Total assets of the subsidiary amounted to NT$2,544,264 thousand and NT$2,158,871 thousand, constituting 14.53% and 12.95% of the consolidated total assets, and total liabilities amounted to NT$607,965 thousand and NT$516,502 thousand, constituting 29.59% and 28.08% of the consolidated total liabilities as at June 30, 2024 and 2023, respectively, and the total comprehensive income amounted to NT$128,475 thousand, NT$109,155 thousand, NT$237,201 thousand and NT$181,564 thousand,
~2~
constituting 40.13%, 34.37%, 29.64% and 34.30% of the consolidated total comprehensive income for the three months and six months then ended, respectively.
Qualified conclusion
Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of an insignificant consolidated subsidiary and the information disclosed in Note 13 been reviewed by independent auditors as described in the Basis for qualified conclusion section above, 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.
Hsu, Huei-Yu
Independent Accountants
Tien, Chung-Yu
PricewaterhouseCoopers, Taiwan
Republic of China
August 7, 2024
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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~
NANTEX INDUSTRY CO., LTD. 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) | $ | 6,329,054 | 36 | $ | 8,253,468 | 48 | $ | 8,210,873 | 49 | |||||||
1110 | Current financial assets at fair | 6(2) | ||||||||||||||||
value through profit or loss | 30,060 | - | 30,150 | - | 30,090 | - | ||||||||||||
1136 | Current financial assets at | 6(1)(3) and 8 | ||||||||||||||||
amortised cost | 3,582,569 | 21 | 2,015,576 | 12 | 1,542,319 | 9 | ||||||||||||
1150 | Notes receivable, net | 6(4) | 167,461 | 1 | 120,945 | 1 | 129,548 | 1 | ||||||||||
1170 | Accounts receivable, net | 6(4) | 1,144,272 | 7 | 706,319 | 4 | 573,772 | 4 | ||||||||||
1200 | Other receivables | 80,324 | - | 47,011 | - | 48,596 | - | |||||||||||
130X | Inventories | 6(5) | 1,477,623 | 8 | 1,332,853 | 8 | 1,565,687 | 9 | ||||||||||
1410 | Prepayments | 472,916 | 3 | 294,661 | 2 | 246,498 | 2 | |||||||||||
11XX | Total current assets | |||||||||||||||||
13,284,279 | 76 | 12,800,983 | 75 | 12,347,383 | 74 | |||||||||||||
Non-current assets | ||||||||||||||||||
1517 | Non-current financial assets at | 6(6) | ||||||||||||||||
fair value through other | ||||||||||||||||||
comprehensive income | 580,052 | 3 | 607,220 | 4 | 585,189 | 4 | ||||||||||||
1600 | Property, plant and equipment | 6(7) and 8 | 2,641,884 | 15 | 2,633,936 | 15 | 2,699,977 | 16 | ||||||||||
1755 | Right-of-use assets | 6(8) and 7 | 229,835 | 1 | 249,556 | 1 | 267,447 | 2 | ||||||||||
1780 | Intangible assets | 6(9) | 10,291 | - | 11,097 | - | 12,186 | - | ||||||||||
1840 | Deferred income tax assets | 6(24) | 31,971 | - | 29,840 | - | 31,718 | - | ||||||||||
1915 | Prepayments for equipment | 61,876 | 1 | 102,008 | 1 | 82,210 | - | |||||||||||
1920 | Guarantee deposits paid | 8 | 678 | - | 3,345 | - | 3,343 | - | ||||||||||
1975 | Net defined benefit asset | 6(14) | 178,872 | 1 | 178,888 | 1 | 159,631 | 1 | ||||||||||
1990 | Other non-current assets | 6(7) | 488,052 | 3 | 489,898 | 3 | 480,225 | 3 | ||||||||||
15XX | Total non-current assets | |||||||||||||||||
4,223,511 | 24 | 4,305,788 | 25 | 4,321,926 | 26 | |||||||||||||
1XXX | Total assets | |||||||||||||||||
$ | 17,507,790 | 100 | $ | 17,106,771 | 100 | $ | 16,669,309 | 100 | ||||||||||
(Continued)
~4~
NANTEX INDUSTRY CO., LTD. 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(10) | $ | 160,000 | 1 | $ | 180,000 | 1 | $ | 170,000 | 1 | ||||||||
2110 | Short-term notes and bills | 6(11) | |||||||||||||||||
payable | - | - | - | - | 9,991 | - | |||||||||||||
2130 | Current contract liabilities | 6(17) | 51,686 | - | 46,392 | - | 52,688 | 1 | |||||||||||
2150 | Notes payable | 8 | - | - | - | - | - | ||||||||||||
2170 | Accounts payable | 411,844 | 3 | 256,649 | 2 | 296,284 | 2 | ||||||||||||
2200 | Other payables | 6(12) and 7 | 623,696 | 4 | 673,581 | 4 | 552,013 | 3 | |||||||||||
2230 | Current income tax liabilities | 6(24) | 234,146 | 1 | 105,800 | 1 | 135,637 | 1 | |||||||||||
2280 | Current lease liabilities | 6(8) and 7 | 35,733 | - | 35,468 | - | 35,700 | - | |||||||||||
2320 | Long-term liabilities, current | 6(13) and 8 | |||||||||||||||||
portion | 10,000 | - | 10,000 | - | 12,500 | - | |||||||||||||
21XX | Total current liabilities | ||||||||||||||||||
1,527,113 | 9 | 1,307,890 | 8 | 1,264,813 | 8 | ||||||||||||||
Non-current liabilities | |||||||||||||||||||
2540 | Long-term borrowings | 6(13) and 8 | 17,500 | - | 2,500 | - | 7,500 | - | |||||||||||
2570 | Deferred income tax liabilities | 6(24) | 334,802 | 2 | 364,877 | 2 | 354,180 | 2 | |||||||||||
2580 | Non-current lease liabilities | 6(8) and 7 | 167,137 | 1 | 186,700 | 1 | 202,927 | 1 | |||||||||||
2640 | Net defined benefit liabilities | 6(14) | 8,014 | - | 7,194 | - | 9,885 | - | |||||||||||
25XX | Total non-current | ||||||||||||||||||
liabilities | 527,453 | 3 | 561,271 | 3 | 574,492 | 3 | |||||||||||||
2XXX | Total liabilities | ||||||||||||||||||
2,054,566 | 12 | 1,869,161 | 11 | 1,839,305 | 11 | ||||||||||||||
Equity | |||||||||||||||||||
Equity attributable to owners of | |||||||||||||||||||
parent | |||||||||||||||||||
Share capital | |||||||||||||||||||
3110 | Common stock | 6(15) | 4,924,167 | 28 | 4,924,167 | 29 | 4,924,167 | 29 | |||||||||||
Capital surplus | |||||||||||||||||||
3200 | Capital surplus | 28,939 | - | 28,939 | - | 28,939 | - | ||||||||||||
Retained earnings | 6(16) | ||||||||||||||||||
3310 | Legal reserve | 2,620,943 | 15 | 2,547,956 | 15 | 2,547,956 | 15 | ||||||||||||
3320 | Special reserve | 433,442 | 3 | 433,442 | 2 | 433,442 | 3 | ||||||||||||
3350 | Unappropriated retained | ||||||||||||||||||
earnings | 5,969,745 | 34 | 6,270,471 | 37 | 5,956,366 | 36 | |||||||||||||
Other equity interest | |||||||||||||||||||
3400 | Other equity interest | 6(6) | 333,571 | 2 | ( | 62,023) | - ( | 29,864) | - | ||||||||||
31XX | Total equity attributable to | ||||||||||||||||||
owners of the parent | 14,310,807 | 82 | 14,142,952 | 83 | 13,861,006 | 83 | |||||||||||||
36XX | Non-controlling interest | ||||||||||||||||||
1,142,417 | 6 | 1,094,658 | 6 | 968,998 | 6 | ||||||||||||||
3XXX | Total equity | ||||||||||||||||||
15,453,224 | 88 | 15,237,610 | 89 | 14,830,004 | 89 | ||||||||||||||
Significant contingent liabilities | 7 and 9 | ||||||||||||||||||
and unrecognised contract | |||||||||||||||||||
commitments | |||||||||||||||||||
3X2X | Total liabilities and equity | $ | 17,507,790 | 100 | $ | 17,106,771 | 100 | $ | 16,669,309 | 100 | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
~5~
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars, except earnings per share amount)
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
Items | Notes | AMOUNT | % | AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||||||
4000 | Operating revenue | 6(17) | $ | 3,060,766 | 100 | $ | 2,247,278 | 100 | $ | 5,241,448 | 100 | $ | 4,485,362 | 100 | |||||||||||||
5000 | Operating costs | 6(5)(9)(14)(22)( | |||||||||||||||||||||||||
23) | ( | 2,483,774) ( | 81) ( | 1,703,836) ( | 76) ( | 4,181,155) ( | 79) ( | 3,411,885) ( | 76) | ||||||||||||||||||
5900 | Net operating margin | ||||||||||||||||||||||||||
576,992 | 19 | 543,442 | 24 | 1,060,293 | 21 | 1,073,477 | 24 | ||||||||||||||||||||
Operating expenses | 6(9)(14)(22)(23) | ||||||||||||||||||||||||||
and 12 | |||||||||||||||||||||||||||
6100 | Selling expenses | ( | 152,920) ( | 5) ( | 116,431) ( | 5) ( | 267,129) ( | 5) ( | 225,914) ( | 5) | |||||||||||||||||
6200 | General and administrative | ||||||||||||||||||||||||||
expenses | ( | 186,232) ( | 6) ( | 200,816) ( | 9) ( | 365,428) ( | 7) ( | 381,376) ( | 8) | ||||||||||||||||||
6300 | Research and development | ||||||||||||||||||||||||||
expenses | ( | 27,330) ( | 1) ( | 23,705) ( | 1) ( | 50,070) ( | 1) ( | 43,407) ( | 1) | ||||||||||||||||||
6450 | Expected credit impairment loss | ( | 341) | - | ( | 317) | - | ( | 219) | - | ( | 360) | - | ||||||||||||||
6000 | Total operating expenses | ||||||||||||||||||||||||||
( | 366,823) ( | 12) ( | 341,269) ( | 15) ( | 682,846) ( | 13) ( | 651,057) ( | 14) | |||||||||||||||||||
6900 | Operating profit | ||||||||||||||||||||||||||
210,169 | 7 | 202,173 | 9 | 377,447 | 8 | 422,420 | 10 | ||||||||||||||||||||
Non-operating income and expenses | |||||||||||||||||||||||||||
7100 | Interest income | 6(3)(18) | 115,640 | 4 | 105,470 | 5 | 232,518 | 4 | 209,853 | 5 | |||||||||||||||||
7010 | Other income | 6(19) | 26,418 | 1 | 6,781 | - | 28,515 | 1 | 10,618 | - | |||||||||||||||||
7020 | Other gains and losses | 6(2)(7)(20) and | |||||||||||||||||||||||||
12 | 16,456 | - | 97,698 | 4 | 66,974 | 1 | 51,764 | 1 | |||||||||||||||||||
7050 | Finance costs | 6(7)(8)(21) and 7 ( | 1,501) | - | ( | 1,085) | - | ( | 3,042) | - | ( | 1,758) | - | ||||||||||||||
7000 | Total non-operating income and | ||||||||||||||||||||||||||
expenses | 157,013 | 5 | 208,864 | 9 | 324,965 | 6 | 270,477 | 6 | |||||||||||||||||||
7900 | Profit before income tax | ||||||||||||||||||||||||||
367,182 | 12 | 411,037 | 18 | 702,412 | 14 | 692,897 | 16 | ||||||||||||||||||||
7950 | Income tax expense | 6(24) | ( | 131,137) ( | 5) ( | 109,710) ( | 5) ( | 297,785) ( | 6) ( | 170,004) ( | 4) | ||||||||||||||||
8200 | Profit for the period | ||||||||||||||||||||||||||
$ | 236,045 | 7 | $ | 301,327 | 13 | $ | 404,627 | 8 | $ | 522,893 | 12 | ||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||
Components of other comprehensive | |||||||||||||||||||||||||||
income (loss) that will not be | |||||||||||||||||||||||||||
reclassified to profit or loss | |||||||||||||||||||||||||||
8316 | Unrealised (losses) gains on | 6(6) | |||||||||||||||||||||||||
financial assets measured at fair | |||||||||||||||||||||||||||
value through other comprehensive | |||||||||||||||||||||||||||
income | ( $ | 33,253) ( | 1) | $ | 25,432 | 1 | ( $ | 48,304) ( | 1) | $ | 35,853 | 1 | |||||||||||||||
Components of other comprehensive | |||||||||||||||||||||||||||
income (loss) that will be reclassified | |||||||||||||||||||||||||||
to profit or loss | |||||||||||||||||||||||||||
8361 | Financial statements translation | ||||||||||||||||||||||||||
differences of foreign operations | 117,342 | 4 | ( | 9,742) | - | 443,898 | 8 | ( | 29,866) ( | 1) | |||||||||||||||||
8367 | Unrealised gains on valuation of | 6(6) | |||||||||||||||||||||||||
investments in debt instruments | |||||||||||||||||||||||||||
measured at fair value through | |||||||||||||||||||||||||||
other comprehensive income, net | - | - | 560 | - | - | - | 516 | - | |||||||||||||||||||
8300 | Other comprehensive income for the | ||||||||||||||||||||||||||
period | $ | 84,089 | 3 | $ | 16,250 | 1 | $ | 395,594 | 7 | $ | 6,503 | - | |||||||||||||||
8500 | Total comprehensive income for the | ||||||||||||||||||||||||||
period | $ | 320,134 | 10 | $ | 317,577 | 14 | $ | 800,221 | 15 | $ | 529,396 | 12 | |||||||||||||||
Profit attributable to: | |||||||||||||||||||||||||||
8610 | Owners of the parent | $ | 160,245 | 5 | $ | 236,925 | 10 | $ | 264,678 | 5 | $ | 415,770 | 9 | ||||||||||||||
8620 | Non-controlling interest | 75,800 | 2 | 64,402 | 3 | 139,949 | 3 | 107,123 | 3 | ||||||||||||||||||
Profit for the period | |||||||||||||||||||||||||||
$ | 236,045 | 7 | $ | 301,327 | 13 | $ | 404,627 | 8 | $ | 522,893 | 12 | ||||||||||||||||
Comprehensive income attributable to: | |||||||||||||||||||||||||||
8710 | Owners of the parent | $ | 244,334 | 8 | $ | 253,175 | 11 | $ | 660,272 | 12 | $ | 422,273 | 10 | ||||||||||||||
8720 | Non-controlling interest | 75,800 | 2 | 64,402 | 3 | 139,949 | 3 | 107,123 | 2 | ||||||||||||||||||
Total comprehensive income for | |||||||||||||||||||||||||||
the period | $ | 320,134 | 10 | $ | 317,577 | 14 | $ | 800,221 | 15 | $ | 529,396 | 12 | |||||||||||||||
Earnings per share (in dollars) | 6(25) | ||||||||||||||||||||||||||
9750 | Basic | $ | 0.33 | $ | 0.48 | $ | 0.54 | $ | 0.84 | ||||||||||||||||||
9850 | Diluted | $ | 0.33 | $ | 0.48 | $ | 0.54 | $ | 0.84 | ||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
~6~
NANTEX INDUSTRY CO., LTD. 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 | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital surplus | Retained Earnings | Other equity interest | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealised gains | |||||||||||||||||||||||||||||||||||||||||||||||||
(losses) from | |||||||||||||||||||||||||||||||||||||||||||||||||
financial assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial | measured at fair | ||||||||||||||||||||||||||||||||||||||||||||||||
statements | value through | ||||||||||||||||||||||||||||||||||||||||||||||||
Changes in | translation | other | |||||||||||||||||||||||||||||||||||||||||||||||
ownership interest | Unappropriated | differences of | comprehensive | Non-controlling | |||||||||||||||||||||||||||||||||||||||||||||
Notes | Common stock | of subsidiaries | Legal reserve | Special reserve | retained earnings | foreign operations | income | Total | interest | Total equity | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | 4,924,167 | $ | 28,939 | $ | 2,420,743 | $ | 433,442 | $ | 6,652,642 | ($ | 140,530 ) | $ | 104,163 | $ 14,423,566 | $ | 895,399 | $ 15,318,965 | |||||||||||||||||||||||||||||||
Profit for the period | |||||||||||||||||||||||||||||||||||||||||||||||||
- | - | - | - | 415,770 | - | - | 415,770 | 107,123 | 522,893 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the period | 6(6) | - | - | - | - | - | ( | 29,866 ) | 36,369 | 6,503 | - | 6,503 | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the period | |||||||||||||||||||||||||||||||||||||||||||||||||
- | - | - | - | 415,770 | ( | 29,866 ) | 36,369 | 422,273 | 107,123 | 529,396 | |||||||||||||||||||||||||||||||||||||||
Distribution of 2022 net income: | |||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve | - | - | 127,213 | - | ( | 127,213 ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Cash dividends | 6(16) | - | - | - | - | ( | 984,833 ) | - | - | ( | 984,833 ) | - | ( | 984,833 ) | |||||||||||||||||||||||||||||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | ( | 33,524 ) | ( | 33,524 ) | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 4,924,167 | $ | 28,939 | $ | 2,547,956 | $ | 433,442 | $ | 5,956,366 | ($ | 170,396 ) | $ | 140,532 | $ 13,861,006 | $ | 968,998 | $ 14,830,004 | ||||||||||||||||||||||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2024 | $ | 4,924,167 | $ | 28,939 | $ | 2,547,956 | $ | 433,442 | $ | 6,270,471 | ($ | 226,409 ) | $ | 164,386 | $ 14,142,952 | $ | 1,094,658 | $ 15,237,610 | |||||||||||||||||||||||||||||||
Profit for the period | |||||||||||||||||||||||||||||||||||||||||||||||||
- | - | - | - | 264,678 | - | - | 264,678 | 139,949 | 404,627 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the period | 6(6) | - | - | - | - | - | 443,898 | ( | 48,304 ) | 395,594 | - | 395,594 | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the period | |||||||||||||||||||||||||||||||||||||||||||||||||
- | - | - | - | 264,678 | 443,898 | ( | 48,304 ) | 660,272 | 139,949 | 800,221 | |||||||||||||||||||||||||||||||||||||||
Distribution of 2023 net income: | |||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve | - | - | 72,987 | - | ( | 72,987 ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Cash dividends | 6(16) | - | - | - | - | ( | 492,417 ) | - | - | ( | 492,417 ) | - | ( | 492,417 ) | |||||||||||||||||||||||||||||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | ( | 92,190 ) | ( | 92,190 ) | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 4,924,167 | $ | 28,939 | $ | 2,620,943 | $ | 433,442 | $ | 5,969,745 | $ | 217,489 | $ | 116,082 | $ 14,310,807 | $ | 1,142,417 | $ 15,453,224 | ||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
~7~
NANTEX INDUSTRY CO., LTD. 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 | |||||||||
Profit before tax | $ | 702,412 | $ | 692,897 | |||||
Adjustments | |||||||||
Adjustments to reconcile profit (loss) | |||||||||
Losses on valuation of financial assets at fair | 6(2)(20) | ||||||||
value through profit or loss | 90 | 960 | |||||||
Expected credit impairment loss | 12 | 219 | 360 | ||||||
(Reversal of) provision for inventory market | 6(5) | ||||||||
price decline | ( | 14,714 ) | 1,494 | ||||||
Losses on disposal of investment | - | 1,057 | |||||||
Depreciation | 6(7)(8)(22) | 166,896 | 169,284 | ||||||
Losses on disposals of property, plant and | 6(20) | ||||||||
equipment | 2,537 | 4,238 | |||||||
Amortisation | 6(9)(22) | 1,252 | 1,334 | ||||||
Interest income | 6(18) | ( | 232,518 ) | ( | 209,853 ) | ||||
Dividend income | 6(6)(19) | ( | 16,560 ) | ( | 144 ) | ||||
Gain from lease modification | 6(8)(20) | - | ( | 25 ) | |||||
Interest expense | 6(21) | 3,042 | 1,758 | ||||||
Unrealised exchange loss (gain) | 7,677 | ( | 59,962 ) | ||||||
Changes in operating assets and liabilities | |||||||||
Changes in operating assets | |||||||||
Notes receivable | ( | 46,516 ) | 16,976 | ||||||
Accounts receivable | ( | 438,194 ) | 90,571 | ||||||
Other receivables | ( | 14,649 ) | 11,438 | ||||||
Inventories | ( | 130,056 ) | 49,926 | ||||||
Prepayments | ( | 178,255 ) | 68,298 | ||||||
Net defined benefit assets | 16 | ( | 10,171 ) | ||||||
Other non-current assets | 14,354 | ( | 26,789 ) | ||||||
Changes in operating liabilities | |||||||||
Current contract liabilities | 5,294 | ( | 18,297 ) | ||||||
Notes payable | 8 | - | |||||||
Accounts payable | 155,195 | 24,449 | |||||||
Other payables | ( | 44,219 ) | ( | 244,522 ) | |||||
Net defined benefit liabilities | 820 | 1,054 | |||||||
Cash (outflow) inflow generated from | |||||||||
operations | ( | 55,869 ) | 566,331 | ||||||
Interest received | 213,854 | 200,545 | |||||||
Dividends received | 16,560 | 144 | |||||||
Interest paid | ( | 3,025 ) | ( | 1,992 ) | |||||
Income tax paid | ( | 201,645 ) | ( | 287,245 ) | |||||
Net cash flows (used in) from operating | |||||||||
activities | ( | 30,125 ) | 477,783 | ||||||
(Continued)
~8~
NANTEX INDUSTRY CO., LTD. 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 INVESTING ACTIVITIES | |||||||||
Cash paid for acquisition of current financial assets | |||||||||
at amortised cost | ( $ | 2,419,088 ) | ( $ | 3,350,436 ) | |||||
Proceeds from disposal of current financial assets at | |||||||||
amortised cost | 896,723 | 4,726,465 | |||||||
Acquisition of financial assets at fair value through | |||||||||
other comprehensive income | ( | 13,824 ) | - | ||||||
Proceeds from disposal of financial assets at fair | 6(6) | ||||||||
value through other comprehensive income | - | 29,847 | |||||||
Cash paid for acquisition of property, plant and | 6(26) | ||||||||
equipment | ( | 38,591 ) | ( | 92,056 ) | |||||
Interest paid for acquisition of property, plant and | 6(7)(21)(26) | ||||||||
equipment | - | ( | 190 ) | ||||||
Proceeds from disposal of property, plant and | |||||||||
equipment | 1,053 | - | |||||||
Increase in intangible assets | 6(9) | ( | 158 ) | ( | 155 ) | ||||
Increase in prepayments for equipment | ( | 72,124 ) | ( | 33,748 ) | |||||
Decrease in guarantee deposits paid | 2,667 | 3,550 | |||||||
Decrease in other non-current assets | 1,995 | - | |||||||
Net cash flows (used in) from investing | |||||||||
activities | ( | 1,641,347 ) | 1,283,277 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Decrease in short-term borrowings | 6(27) | ( | 20,000 ) | ( | 10,000 ) | ||||
Increase in short-term notes and bills payable | 6(27) | - | 10,000 | ||||||
Payment of lease liabilities | 6(27) | ( | 17,978 ) | ( | 13,079 ) | ||||
Increase in long-term borrowings | 6(27) | 30,000 | 20,000 | ||||||
Decrease in long-term borrowings | 6(27) | ( | 15,000 ) | ( | 30,000 ) | ||||
Payment of cash dividends | 6(16) | ( | 492,417 ) | ( | 984,833 ) | ||||
Decrease in non-controlling interest | ( | 92,190 ) | ( | 33,524 ) | |||||
Net cash flows used in financing activities | |||||||||
( | 607,585 ) | ( | 1,041,436 ) | ||||||
Effect of foreign exchange rate changes | |||||||||
354,643 | ( | 6,428 ) | |||||||
Net (decrease) increase in cash and cash equivalents | |||||||||
( | 1,924,414 ) | 713,196 | |||||||
Cash and cash equivalents at beginning of period | 6(1) | 8,253,468 | 7,497,677 | ||||||
Cash and cash equivalents at end of period | 6(1) | $ | 6,329,054 | $ | 8,210,873 |
The accompanying notes are an integral part of these consolidated financial statements.
~9~
NANTEX INDUSTRY CO., LTD. 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)
- HISTORY AND ORGANISATION
- NANTEX INDUSTRY CO., LTD. (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.) on January 10, 1979. The Company and its subsidiaries (collectively referred herein as the "Group") are primarily engaged in the manufacture, processing and sales of various types of latex, rubber and related products.
- The common shares of the Company have been listed on the Taiwan Stock Exchange since October 27, 1992.
-
THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORISATION
These consolidated financial statements were authorised 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 the 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 | Standard Board ("IASB") |
Amendments to IFRS 16, 'Lease liability in a sale and leaseback' | January 1, 2024 |
Amendments to IAS 1, 'Classification of liabilities as current or | January 1, 2024 |
non-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.
-
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 | ||
New Standards, Interpretations and Amendments | IASB | |
Amendments to IAS 21, 'Lack of exchangeability' | January 1, 2025 | |
~10~ |