PANJIT INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
WITH REPORT OF INDEPENDENT ACCOUNTANTS
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2024 AND 2023
Address: No.24, Gangshan N. Rd., Gangshan Dist., Kaohsiung City, Taiwan, R.O.C.
Telephone: 886-7-621-3121
The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese financial statements shall prevail.
~1~
Review Report of Independent Accountants
To: PANJIT INTERNATIONAL INC.
Introduction
We have reviewed the accompanying consolidated balance sheets of PANJIT INTERNATIONAL INC. (the "Company") and its subsidiaries as of 30 June 2024 and 2023, the related consolidated statements of comprehensive income for the three-month and six-month periods ended 30 June 2024 and 2023 and consolidated statements of changes in equity and cash flows for the six-month periods ended 30 June 2024 and 2023, and notes to the consolidated financial statements, including the summary of significant accounting policies (together "the consolidated financial statements"). 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" as endorsed and became effective by Financial Supervisory Commission of the Republic of China. 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 Statement of Auditing Standards No. 2410, "Review of Financial Statements". 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 conducted in accordance with auditing standards generally accepted in 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 explained in Note 4, the financial statements of certain insignificant subsidiaries were not reviewed by independent accountants. Those statements reflected total assets of NT$5,224,507 thousand and NT$4,516,682 thousand, constituting 18% and 16% of the consolidated total assets, and total liabilities of NT$984,916 thousand and NT$871,629 thousand, constituting 7% and 6% of the consolidated total liabilities as of 30 June 2024 and 2023, respectively; and total comprehensive income of (NT$103,005) thousand, (NT$118,007) thousand, NT$209,260 thousand and NT$151,031 thousand, constituting (22)%, (12)%, 64% and 29% of the consolidated total comprehensive income for the three-month and six-month periods ended 30 June 2024 and 2023, respectively. As explained in Note 6.(8), the financial statements of certain associates and joint ventures accounted for under the equity method were not reviewed by independent accountants. Those associates and joint ventures under equity method amounted to NT$136,644 thousand and NT$137,566 thousand as of 30 June 2024 and 2023, respectively. The related shares of profits from the associates and joint ventures under the equity method amounted to NT$934 thousand, NT$9 thousand, (NT$970) thousand and (NT$4,069) thousand for the three-month and six-month periods
~2~
ended 30 June 2024 and 2023, respectively. The information related to above subsidiaries, and associates and joint ventures accounted for under the equity method disclosed in Note 13 was also not reviewed by independent accountants.
Qualified Conclusion
Based on our reviews and the review reports of other independent accountants (please refer to the Other Matter paragraph of our report), except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain insignificant subsidiaries, associates and joint ventures accounted for using equity method and the information been reviewed by independent accountants described in the preceding paragraph, 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 Company and its subsidiaries as at 30 June 2024 and 2023, and their consolidated financial performance for the three-month and six- month periods ended 30 June 2024 and 2023, and their consolidated cash flows for the six-month periods ended 30 June 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" as endorsed and became effective by Financial Supervisory Commission of the Republic of China.
Other Matter - Making Reference to the Reviews of Other Independent Accountants
We did not review the financial statements of certain investment accounted for under the equity method, which reflected the associates and joint ventures under equity method in the amount of NT1,575,905 thousand and NT$1,499,505 thousand, constituting 5% and 5% of consolidated total assets as of 30 June 2024 and 2023, and the related shares of profits from the associates and joint ventures under the equity method of NT$43,019 thousand, NT$71,183 thousand, NT$32,062 thousand, and NT$41,432 thousand, constituting 11%, 11%, 8% and 7% of consolidated pretax income for the three-month and six-month periods ended 30 June 2024 and 2023, respectively. Those financial statements were reviewed by other independent accountants, whose reports thereon have been furnished to us, and our review results are based solely on the reports of the other independent accountants.
Ernst & Young Taiwan
Aug 9, 2024
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations 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 accepted and applied in the Republic of China.
Accordingly, the accompanying consolidated financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of Republic of China, and their applications in practice.
~3~
English Translation of Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2024, December 31, 2023, and June 30, 2023
(Expressed in Thousand of New Taiwan Dollars)
Asset | Note | June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||
Current asset | ||||||||||||||||||||||
Cash and cash equivalents | 6(1) | $2,565,035 | 9 | $3,076,877 | 11 | $2,121,069 | 7 | |||||||||||||||
Financial assets at fair value through profit or loss - current | 6(2) | 4,469,795 | 15 | 3,325,793 | 11 | 2,684,458 | 9 | |||||||||||||||
Notes receivable, net | 6(5),(20) | 571,838 | 2 | 590,324 | 2 | 753,277 | 3 | |||||||||||||||
Trade receivable, net | 6(6),(20) | 3,707,248 | 13 | 3,443,023 | 12 | 3,781,588 | 13 | |||||||||||||||
Trade receivable-related parties, net | 6(6), (20)/7 | 42,206 | - | 39,589 | - | 45,667 | - | |||||||||||||||
Other receivables, net | 226,388 | 1 | 150,301 | 1 | 677,040 | 2 | ||||||||||||||||
Other receivables-related parties, net | 7 | 12,044 | - | 2,760 | - | 10,807 | - | |||||||||||||||
Inventories, net | 6(7) | 2,782,126 | 9 | 3,006,980 | 10 | 3,282,615 | 12 | |||||||||||||||
Prepayments | 535,138 | 2 | 538,418 | 2 | 507,755 | 2 | ||||||||||||||||
Other current assets | 8 | 91,618 | - | 158,256 | 1 | 128,837 | 1 | |||||||||||||||
Total current assets | 15,003,436 | 51 | 14,332,321 | 50 | 13,993,113 | 49 | ||||||||||||||||
Non-current assets | ||||||||||||||||||||||
Financial assets at fair value through profit or loss - non-current | 6(2) | 421,893 | 1 | 61,989 | - | 38,071 | - | |||||||||||||||
Financial assets at fair value through other comprehensive income - non-current | 6(3) | 490,493 | 2 | 493,248 | 2 | 535,763 | 2 | |||||||||||||||
Financial assets measured at amortized cost-Non-current | 6(4) | 28,031 | - | 27,511 | - | 27,442 | - | |||||||||||||||
Investments accounted for using the equity method | 6(8) | 2,039,887 | 7 | 2,018,480 | 7 | 1,954,355 | 7 | |||||||||||||||
Property, Plant, and Equipment | 6(9) | 7,584,086 | 26 | 7,801,152 | 27 | 7,726,817 | 27 | |||||||||||||||
Right-of-use assets | 6(21) | 1,195,142 | 4 | 1,224,334 | 4 | 1,264,079 | 4 | |||||||||||||||
Intangible assets | 6(10),(11) | 1,642,213 | 6 | 1,649,469 | 6 | 1,640,254 | 6 | |||||||||||||||
Deferred tax assets | 371,994 | 1 | 379,346 | 1 | 360,548 | 1 | ||||||||||||||||
Prepayment for equipments | 111,089 | - | 78,260 | - | 127,684 | 1 | ||||||||||||||||
Refundable deposits | 8 | 280,928 | 1 | 468,708 | 2 | 533,137 | 2 | |||||||||||||||
Other non-current assets, others | 8 | 194,438 | 1 | 147,917 | 1 | 134,805 | 1 | |||||||||||||||
Total non-current assets | 14,360,194 | 49 | 14,350,414 | 50 | 14,342,955 | 51 | ||||||||||||||||
Total assets | $29,363,630 | 100 | $28,682,735 | 100 | $28,336,068 | 100 | ||||||||||||||||
(The accompanying notes are an integral part of the consolidated financial statements.)
～4～
English Translation of Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2024, December 31, 2023, and June 30, 2023
(Expressed in Thousand of New Taiwan Dollars)
Liabilities and equity | Note | June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||
Current Liabilities | ||||||||||||||||||||||
Short-term borrowings | 6(12) | $3,053,775 | 10 | $2,689,193 | 9 | $2,184,969 | 8 | |||||||||||||||
Financial liabilities at fair value through profit or loss - current | 6(13) | 1,641 | - | - | - | 8,115 | - | |||||||||||||||
Contractual liabilities - current | 6(19) | 6,873 | - | 9,744 | - | 19,737 | - | |||||||||||||||
Notes payable | 6(14) | 449,315 | 2 | 636,740 | 2 | 468,393 | 2 | |||||||||||||||
Trade payable | 1,415,316 | 5 | 1,350,821 | 5 | 1,268,281 | 4 | ||||||||||||||||
Trade payable-related parties | 7 | 52,608 | - | 54,277 | - | 42,582 | - | |||||||||||||||
Other payables | 1,854,561 | 6 | 1,368,002 | 5 | 2,516,949 | 9 | ||||||||||||||||
Other payables - related parties | 7 | 38,174 | - | 37,190 | - | 36,810 | - | |||||||||||||||
Current tax liabilities | 198,583 | 1 | 288,522 | 1 | 278,840 | 1 | ||||||||||||||||
Lease liabilities - current | 6(21) / 7 | 49,522 | - | 51,245 | - | 51,263 | - | |||||||||||||||
Long-term borrowings, current portion | 6(16) / 8 | 611,348 | 2 | 507,000 | 2 | 507,000 | 2 | |||||||||||||||
Other current liabilities | 122,051 | 1 | 117,330 | 1 | 122,968 | 1 | ||||||||||||||||
Total current liabilities | 7,853,767 | 27 | 7,110,064 | 25 | 7,505,907 | 27 | ||||||||||||||||
Non-current Liabilities | ||||||||||||||||||||||
Long-term borrowings | 6(16) / 8 | 5,991,999 | 21 | 6,342,653 | 22 | 5,988,875 | 21 | |||||||||||||||
Deferred tax liabilities | 108,006 | - | 82,889 | - | 99,944 | 1 | ||||||||||||||||
Lease liabilities - non-current | 6(21) / 7 | 267,024 | 1 | 281,270 | 1 | 296,191 | 1 | |||||||||||||||
Long-term deferred revenue | 6(15) | 56,707 | - | 61,566 | - | 88,616 | - | |||||||||||||||
Defined benefit liabilities-non-current | 43,377 | - | 66,579 | - | 62,834 | - | ||||||||||||||||
Other non-current liabilities | 102,282 | - | 103,175 | 1 | 95,052 | - | ||||||||||||||||
Total non-current liabilities | 6,569,395 | 22 | 6,938,132 | 24 | 6,631,512 | 23 | ||||||||||||||||
Total liabilities | 14,423,162 | 49 | 14,048,196 | 49 | 14,137,419 | 50 | ||||||||||||||||
Equity attributable to the parent company | ||||||||||||||||||||||
Capital stock | ||||||||||||||||||||||
Common stock | 6(18) | 3,821,149 | 13 | 3,821,149 | 13 | 3,821,149 | 14 | |||||||||||||||
Capital surplus | 6(18) | 6,011,885 | 21 | 6,007,138 | 21 | 6,005,745 | 21 | |||||||||||||||
Retained earnings | 6(18) | |||||||||||||||||||||
Legal reserve | 812,657 | 3 | 729,336 | 3 | 729,336 | 3 | ||||||||||||||||
Special reserve | 717,237 | 2 | 717,237 | 2 | 717,237 | 2 | ||||||||||||||||
Unappropriated earnings | 2,499,149 | 9 | 2,579,987 | 9 | 2,194,228 | 8 | ||||||||||||||||
Total retained earnings | 4,029,043 | 14 | 4,026,560 | 14 | 3,640,801 | 13 | ||||||||||||||||
Other components of equity | (230,688) | (1) | (606,249) | (2) | (565,085) | (2) | ||||||||||||||||
Treasury stock | 6(18) | - | - | - | - | - | - | |||||||||||||||
Equity attributable to owners of the parent company | 13,631,389 | 47 | 13,248,598 | 46 | 12,902,610 | 46 | ||||||||||||||||
Non-controlling interests | 6(18) | 1,309,079 | 4 | 1,385,941 | 5 | 1,296,039 | 4 | |||||||||||||||
Total equity | 14,940,468 | 51 | 14,634,539 | 51 | 14,198,649 | 50 | ||||||||||||||||
Total liabilities and equity | $29,363,630 | 100 | $28,682,735 | 100 | $28,336,068 | 100 | ||||||||||||||||
(The accompanying notes are an integral part of the consolidated financial statements.)
～5～
English Translation of Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three-month and six-month periods ended 30 June 2024 and 2023 (Expressed in Thousand of New Taiwan Dollars)
For the three-month periods ended June | For the six-month periods ended June | ||||||||||||||||
Items | Note | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||
Operating revenue | 6(19), 7 | $3,280,543 | 100 | $3,541,090 | 100 | $6,189,677 | 100 | $6,403,524 | 100 | ||||||||
Operating cost | 6(7),(21),(22),7 | (2,371,397) | (72) | (2,651,423) | (75) | (4,504,328) | (73) | (4,805,599) | (75) | ||||||||
Gross profit | 909,146 | 28 | 889,667 | 25 | 1,685,349 | 27 | 1,597,925 | 25 | |||||||||
Operating expenses | 6(20),(21),(22),7 | ||||||||||||||||
Selling expenses | (181,109) | (6) | (174,384) | (5) | (344,930) | (6) | (338,621) | (5) | |||||||||
General and administrative expenses | (274,634) | (8) | (222,304) | (6) | (505,939) | (8) | (413,083) | (7) | |||||||||
Research and development expenses | (206,483) | (6) | (193,323) | (6) | (443,827) | (7) | (401,866) | (6) | |||||||||
Expected credit (losses) gains | 4,867 | - | (3,128) | - | 1,699 | - | 3,296 | - | |||||||||
Subtotal | (657,359) | (20) | (593,139) | (17) | (1,292,997) | (21) | (1,150,274) | (18) | |||||||||
Operating income | 251,787 | 8 | 296,528 | 8 | 392,352 | 6 | 447,651 | 7 | |||||||||
Non-operating income and expenses | 6(21),(23),7 | ||||||||||||||||
Interest income | 49,753 | 2 | 44,085 | 1 | 102,270 | 2 | 76,128 | 1 | |||||||||
Other income | 22,314 | 1 | 27,111 | 1 | 34,321 | 1 | 51,790 | 1 | |||||||||
Other gains and losses | 67,400 | 2 | 66,536 | 2 | 167,528 | 3 | 84,361 | 1 | |||||||||
Finance costs | (56,295) | (2) | (50,117) | (1) | (112,835) | (2) | (103,811) | (2) | |||||||||
Share of profit or loss of associates under equity method | 6(8) | 46,246 | 1 | 36,367 | 1 | 72,367 | 1 | 46,683 | 1 | ||||||||
Subtotal | 129,418 | 4 | 123,982 | 4 | 263,651 | 5 | 155,151 | 2 | |||||||||
Pretax income from continuing operations | 381,205 | 12 | 420,510 | 12 | 656,003 | 11 | 602,802 | 9 | |||||||||
Income tax expenses | 6(25) | (46,675) | (2) | (57,924) | (2) | (95,199) | (2) | (85,233) | (1) | ||||||||
Profit from continuing operations | 334,530 | 10 | 362,586 | 10 | 560,804 | 9 | 517,569 | 8 | |||||||||
Net income | 334,530 | 10 | 362,586 | 10 | 560,804 | 9 | 517,569 | 8 | |||||||||
Other comprehensive income (loss) | 6(24),(25) | ||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | |||||||||||||||||
Unrealized gains (losses) from equity instrument investments measured at | 12,139 | - | (17,663) | (1) | (3,973) | - | 25,210 | - | |||||||||
fair value through other comprehensive income | |||||||||||||||||
Income tax related to items that will not be reclassified | 780 | - | (78) | - | 2,147 | - | (119) | - | |||||||||
Items that may be reclassified subsequently to profit or loss: | |||||||||||||||||
Exchange differences arising on translation of foreign operations | 126,862 | 4 | (16,286) | - | 442,344 | 7 | (20,702) | - | |||||||||
Income tax related to items that may be reclassified | - | - | - | - | (50,277) | (1) | - | - | |||||||||
Total other comprehensive income (loss), net of tax | 139,781 | 4 | (34,027) | (1) | 390,241 | 6 | 4,389 | - | |||||||||
Total comprehensive income (loss) | $474,311 | 14 | $328,559 | 9 | $951,045 | 15 | $521,958 | 8 | |||||||||
Net income (loss) attributable to: | |||||||||||||||||
Stockholders of the parent | $281,992 | 8 | $301,846 | 8 | $460,589 | 7 | $432,215 | 7 | |||||||||
Non-controlling interests | 52,538 | 2 | 60,740 | 2 | 100,215 | 2 | 85,354 | 1 | |||||||||
$334,530 | 10 | $362,586 | 10 | $560,804 | 9 | $517,569 | 8 | ||||||||||
Total comprehensive income attributable to: | |||||||||||||||||
Stockholders of the parent | $411,591 | 12 | $269,698 | 7 | $836,582 | 13 | $434,989 | 7 | |||||||||
Non-controlling interests | 62,720 | 2 | 58,861 | 2 | 114,463 | 2 | 86,969 | 1 | |||||||||
$474,311 | 14 | $328,559 | 9 | $951,045 | 15 | $521,958 | 8 | ||||||||||
Earnings per share (NT$) | 6(26) | ||||||||||||||||
Basic earnings per share: | $0.74 | $0.79 | $1.21 | $1.13 | |||||||||||||
Diluted earnings per share | $0.74 | $0.79 | $1.20 | $1.13 | |||||||||||||
(The accompanying notes are an integral part of the consolidated financial statements.)
～6～
English Translation of Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the six-month periods ended 30 June 2024 and 2023
(Expressed in Thousand of New Taiwan Dollars)
Equity attributable to owners of parent company | |||||||||||||||||||||
Capital | Retained earnings | Other Components of Equity | |||||||||||||||||||
Exchange | Unrealized Gains or | Non- | |||||||||||||||||||
Differences | |||||||||||||||||||||
Losses on Financial | Controlling | Total Equity | |||||||||||||||||||
Legal | Special | Unappropriated | Arising on | Treasury | |||||||||||||||||
Items | Common Stock | Capital Surplus | Assets Measured at Fair | Others | Total | Interests | |||||||||||||||
Reserves | Reserves | earnings | Translation | Stock | |||||||||||||||||
Value through Other | |||||||||||||||||||||
of Foreign | |||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||
Operations | |||||||||||||||||||||
Balance as of January 1, 2023 | $3,828,149 | $6,016,861 | $505,733 | $717,237 | $3,116,721 | ($418,846) | ($133,358) | ($413) | ($16,507) | $13,615,577 | $1,293,658 | $14,909,235 | |||||||||
Appropriation and distribution of 2022 retained earnings | |||||||||||||||||||||
Legal reserve | - | - | 223,603 | - | (223,603) | - | - | - | - | - | - | - | |||||||||
Cash dividend | - | - | - | - | (1,146,345) | - | - | - | - | (1,146,345) | - | (1,146,345) | |||||||||
Changes in equity of associates accounted for using the equity method | - | (1,649) | - | - | - | - | - | - | - | (1,649) | - | (1,649) | |||||||||
Net income for the six-month periods ended 30 June 2023 | - | - | - | - | 432,215 | - | - | - | - | 432,215 | 85,354 | 517,569 | |||||||||
Other comprehensive income (loss) for the six-month periods ended 30 June 2023 | - | - | - | - | - | (21,549) | 24,323 | - | - | 2,774 | 1,615 | 4,389 | |||||||||
Total comprehensive income (loss) | - | - | - | - | 432,215 | (21,549) | 24,323 | - | - | 434,989 | 86,969 | 521,958 | |||||||||
Retirement of treasury share | (7,000) | (9,507) | - | - | - | - | - | - | 16,507 | - | - | - | |||||||||
Changes in ownership interests in subsidiaries | - | 40 | - | - | (2) | - | - | - | - | 38 | (38) | - | |||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | (84,550) | (84,550) | |||||||||
Disposal of investments in equity instruments designated at fair value through other | - | - | - | - | 15,242 | - | (15,242) | - | - | - | - | - | |||||||||
comprehensive income | |||||||||||||||||||||
Balance as of June 30, 2023 | $3,821,149 | $6,005,745 | $729,336 | $717,237 | $2,194,228 | ($440,395) | ($124,277) | ($413) | $- | $12,902,610 | $1,296,039 | $14,198,649 | |||||||||
Balance as of January 1, 2024 | $3,821,149 | $6,007,138 | $729,336 | $717,237 | $2,579,987 | ($465,184) | ($140,652) | ($413) | $- | $13,248,598 | $1,385,941 | $14,634,539 | |||||||||
Appropriation and distribution of 2023 retained earnings | |||||||||||||||||||||
Legal reserve | - | - | 83,321 | - | (83,321) | - | - | - | - | - | - | - | |||||||||
Cash dividend | - | - | - | - | (458,538) | - | - | - | - | (458,538) | - | (458,538) | |||||||||
Changes in equity of associates accounted for using the equity method | - | 22,160 | - | - | - | - | - | - | - | 22,160 | - | 22,160 | |||||||||
Net income for the six-month periods ended 30 June 2024 | - | - | - | - | 460,589 | - | - | - | - | 460,589 | 100,215 | 560,804 | |||||||||
Other comprehensive income (loss) for the six-month periods ended 30 June 2024 | - | - | - | - | - | 377,797 | (1,804) | - | - | 375,993 | 14,248 | 390,241 | |||||||||
Total comprehensive income (loss) | - | - | - | - | 460,589 | 377,797 | (1,804) | - | - | 836,582 | 114,463 | 951,045 | |||||||||
Disposal of equity instruments investments at fair value through other comprehensive | - | (19,179) | - | - | - | - | - | - | - | (19,179) | (33,167) | (52,346) | |||||||||
income | |||||||||||||||||||||
Changes in ownership interests in subsidiaries | - | 1,766 | - | - | - | - | - | - | - | 1,766 | 16,907 | 18,673 | |||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | (175,065) | (175,065) | |||||||||
Disposal of investments in equity instruments designated at fair value through other | - | - | - | - | 432 | - | (432) | - | - | - | - | - | |||||||||
comprehensive income | |||||||||||||||||||||
Balance as of June 30, 2024 | $3,821,149 | $6,011,885 | $812,657 | $717,237 | $2,499,149 | ($87,387) | ($142,888) | ($413) | $- | $13,631,389 | $1,309,079 | $14,940,468 | |||||||||
(The accompanying notes are an integral part of the consolidated financial statements.)
～7～
English Translation of Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the six-month periods ended 30 June 2024 and 2023 (Expressed in Thousand of New Taiwan Dollars)
Items | For the six-month periods ended 30 June | ||||||
2024 | 2023 | ||||||
Cash flow from operating activities | |||||||
Profit before tax for the current period | $656,003 | $602,802 | |||||
Adjustment items: | |||||||
Revenue and expenses | |||||||
Depreciation expense | 502,604 | 424,696 | |||||
Amortization expense | 16,465 | 23,454 | |||||
Expected credit impairment loss (gain) | (1,699) | (3,296) | |||||
Net (gain) on financial assets or liabilities at fair value through profit or loss | (95,656) | (59,033) | |||||
Interest expense | 112,835 | 103,811 | |||||
Interest revenue | (102,270) | (76,128) | |||||
Dividend income | (2,340) | (3,011) | |||||
Share of (profit) of associates accounted for using equity method | (72,367) | (46,683) | |||||
(Gain) on disposal of property, plant and equipment | (1,966) | (75) | |||||
Reversal of impairment loss on non-financial assets | (21) | (52) | |||||
Other items - loss on inventory valuation | 38,355 | 137,822 | |||||
Others - other | 16,087 | (5,630) | |||||
Subtotal | 410,027 | 495,875 | |||||
Changes in operating assets and liabilities: | |||||||
Changes in operating assets: | |||||||
Financial assets at fair value through profit or loss, mandatorily measured at fair value | (860,011) | 414,341 | |||||
Notes receivable | 18,486 | (400,418) | |||||
Ttrade receivable | (345,078) | (436,066) | |||||
Trade receivable-related parties | (2,617) | 11,033 | |||||
Other receivables | (76,731) | (530,885) | |||||
Other receivables-related parties | (9,284) | (7,455) | |||||
Inventories | 180,125 | 339,108 | |||||
Prepayments | 6,924 | 263,031 | |||||
Other current assets | 66,638 | 21,539 | |||||
Changes in operating liabilities: | |||||||
Contract liabilities | (2,871) | 9,696 | |||||
Notes payable | (187,425) | (137,512) | |||||
Trade payable | 64,495 | (149,400) | |||||
Trade payable-related parties | (1,669) | (16,486) | |||||
Other payables | 47,797 | (227,133) | |||||
Other payables-related parties | 984 | (1,093) | |||||
Other current liabilities | 4,721 | 46,023 | |||||
Net defined benefit liabilities-non-current | (24,424) | (5,675) | |||||
Subtotal | (1,119,940) | (807,352) | |||||
Cash generated from operations | (53,910) | 291,325 | |||||
Interest received | 104,493 | 76,128 | |||||
Income tax (paid) | (204,191) | (106,757) | |||||
Net cash flows from (used in) operating activities | (153,608) | 260,696 | |||||
(continued) | (The accompanying notes are an integral part of the consolidated financial statements.) |
～8～
English Translation of Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the six-month periods ended 30 June 2024 and 2023 (Expressed in Thousand of New Taiwan Dollars)
Items | For the six-month periods ended 30 June | |||||
2024 | 2023 | |||||
Cash flows from investing activities: | ||||||
Acquisition of financial assets at fair value through other comprehensive income | (5,576) | - | ||||
Proceeds from disposal of financial assets at fair value through other comprehensive income | 3,815 | - | ||||
Acquisition of financial assets at fair value through profit or loss | (466,401) | (2,848) | ||||
Proceeds from disposal of financial assets at fair value through profit or loss | 101,651 | - | ||||
Acquisition of investments accounted for under the equity method | (19,093) | - | ||||
Acquisition of property, plant and equipment | (170,888) | (527,532) | ||||
Proceeds from disposal of property, plant and equipments | 2,002 | 3,724 | ||||
Decrease in refundable deposits | 187,780 | 104,333 | ||||
Acquisition of intangible assets | (3,421) | (1,021) | ||||
Increase in other financial assets | - | (1,796) | ||||
Decrease in other financial assets | 70,018 | - | ||||
Increase in other non-current assets | (116,538) | (590) | ||||
Increase in prepayments for equipments | (68,604) | (63,378) | ||||
Dividends received | 147,509 | 123,715 | ||||
Net cash (used in) investing activities | (337,746) | (365,393) | ||||
Cash flows from financing activities: | ||||||
Increase in short-term loans | 357,213 | - | ||||
Decrease in short-term loans | - | (566,840) | ||||
Repayments of long-term debt | (251,522) | (19,161) | ||||
Repayments of lease liabilities | (34,940) | (34,167) | ||||
Decrease in other non-current liabilities | (894) | (1,643) | ||||
Acquisition of ownership interests in subsidiaries | (27,500) | - | ||||
Interest paid | (104,142) | (95,521) | ||||
Change in non-controlling interests | (175,065) | (84,550) | ||||
Net cash (used in) by financing activities | (236,850) | (801,882) | ||||
Effect of exchange rate changes on cash and cash equivalents | 216,362 | (5,920) | ||||
Net (decrease) increase in cash and cash equivalents | (511,842) | (912,499) | ||||
Cash and cash equivalents at beginning of period | 3,076,877 | 3,033,568 | ||||
Cash and cash equivalents at end of period | $2,565,035 | $2,121,069 | ||||
(The accompanying notes are an integral part of the consolidated financial statements.)
～9～
English Translation of Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2024 AND 2023
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)
1. History and organization
PANJIT INTERNATIONAL INC. (the Company) was incorporated on 20 May 1986, under the
Company Act of the Republic of China on Taiwan. The Company's registered address is No. 24,
Gangshan N. Rd., Gangshan Dist., Kaohsiung City. The principal activities of the Company are to manufacture, process, assemble and to import and export semiconductors. The Company also assembles, trades and transfers technological advancements of machinery parts. The Company also trades resins and paints for semiconductors.
The Company's stock was officially listed for trading on the OTC market on December 22, 1999, and then listed on the Taiwan Stock Exchange on September 17, 2001.
2. Date and procedures of authorization of financial statements for issue
The consolidated financial statements of the Company and its subsidiaries ("the Group") for the six-month periods ended 30 June 2024 and 2023 were authorized for issue by the Board of Directors on 9 August 2024.
3. Applicability of new published and revised criteria and their interpretation
(1)Changes in accounting policies resulting from applying for the first time certain standards and amendments
The Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission ("FSC") and become effective for annual periods beginning on or after 1 January 2024. The adoption of these new standards and amendments had no material impact on the Group.
(2)Standards issued by International Accounting Standards Board (IASB) which are endorsed by FSC, but not yet adopted by the Group are listed below:
Items | New, Revised or Amended Standards and Interpretations | Effective date issued |
by IASB | ||
a | Lack of Exchangeability -Amendments to IAS 21 | January 1, 2025 |
～10～