YFY Inc. and Subsidiaries
Consolidated Financial Statements for the
Six Months Ended June 30, 2024 and 2023 and Independent Auditors' Review Report
INDEPENDENT AUDITORS' REVIEW REPORT
The Board of Directors and Shareholders
YFY Inc.
Introduction
We have reviewed the accompanying consolidated balance sheets of YFY Inc. and its subsidiaries (collectively referred to as the "Group") as of June 30, 2024 and 2023, the related consolidated statements of comprehensive income for the three and six months ended June 30, 2024 and 2023, the consolidated statements of changes in equity and cash flows for the six months ended June 30, 2024 and 2023, and the related 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 following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". 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
As disclosed in Notes 15 and 16 to the consolidated financial statements, the financial statements of some non-significant subsidiaries and investments accounted for using the equity method included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of June 30, 2024 and 2023, the combined total assets of these non-significant subsidiaries were NT$23,983,467 thousand and NT$21,770,678 thousand, respectively, representing both of 15%, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$7,152,203 thousand and NT$6,349,372 thousand, respectively, representing both of 9%, of the consolidated total liabilities; for the three and six months ended June 30, 2024 and 2023, the amounts of combined comprehensive income of these non-significant subsidiaries were a gain of NT$217,174 thousand, a loss of NT$53,713 thousand, a gain of NT$577,711 thousand, and a gain of NT$35,706 thousand, respectively, representing 4%, 5%, 5% and 6%, respectively, of the consolidated total comprehensive income. As of June 30, 2024 and 2023, the carrying amounts of the above mentioned investments accounted for using the equity method were NT$139,999 thousand and NT$119,100 thousand, respectively; for the three and six months ended June 30, 2024 and 2023, the amounts of comprehensive income (loss) of investments accounted for using the equity method were a loss of NT$7,120 thousand, a gain of NT$2,747 thousand, a loss of NT$6,411 thousand and a loss of NT$4,006 thousand, respectively.
- 1 -
Qualified Conclusion
Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and investments accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2024 and 2023, its consolidated financial performance for the three months ended June 30, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 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 Hui-Min Huang and Chih-Ming Shao.
Deloitte & Touche
Taipei, Taiwan
Republic of China
August 13, 2024
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.
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YFY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)
June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||||||||||||||
ASSETS | Amount | % | Amount | % | Amount | % | ||||||||||||||
CURRENT ASSETS (Note 4) | ||||||||||||||||||||
Cash and cash equivalents (Note 6) | $ | 10,650,198 | 7 | $ | 8,917,405 | 6 | $ | 9,472,277 | 7 | |||||||||||
Current financial assets at fair value through profit or loss (Note 7) | 957,535 | 1 | 1,109,842 | 1 | 1,226,419 | 1 | ||||||||||||||
Current financial assets at fair value through other comprehensive income (Notes 8 | ||||||||||||||||||||
and 31) | 13,028,723 | 8 | 10,393,391 | 7 | 9,007,467 | 6 | ||||||||||||||
Current financial assets at amortized cost (Note 9) | 1,459,842 | 1 | 2,458,360 | 2 | 3,266,281 | 2 | ||||||||||||||
Notes receivable, net (Notes 12, 23 and 32) | 2,695,608 | 2 | 2,279,143 | 2 | 2,755,789 | 2 | ||||||||||||||
Accounts receivable, net (Notes 12 and 23) | 12,538,305 | 8 | 11,655,418 | 8 | 11,073,039 | 8 | ||||||||||||||
Accounts receivable due from related parties, net (Notes 23 and 31) | 62,105 | - | 113,464 | - | 71,042 | - | ||||||||||||||
Current inventories (Note 13) | 12,358,356 | 8 | 11,489,250 | 8 | 12,056,823 | 9 | ||||||||||||||
Current biological assets (Note 14) | 3,613,275 | 2 | 3,339,318 | 2 | 3,234,538 | 2 | ||||||||||||||
Prepayments | 1,906,562 | 1 | 1,700,401 | 1 | 2,068,526 | 2 | ||||||||||||||
Other current financial assets (Note 32) | 606,671 | - | 457,639 | - | 465,420 | - | ||||||||||||||
Other current assets, others (Note 31) | 1,991,899 | 1 | 1,118,335 | 1 | 1,926,634 | 1 | ||||||||||||||
Total current assets | 61,869,079 | 39 | 55,031,966 | 38 | 56,624,255 | 40 | ||||||||||||||
NON-CURRENT ASSETS (Note 4) | ||||||||||||||||||||
Non-current financial assets at fair value through profit or loss (Note 7) | 124,781 | - | 118,492 | - | - | - | ||||||||||||||
Non-current financial assets at fair value through other comprehensive income (Notes 8 | ||||||||||||||||||||
and 31) | 25,199,108 | 16 | 20,215,348 | 14 | 18,873,550 | 13 | ||||||||||||||
Non-current financial assets at amortized cost (Note 9) | 4,122,651 | 3 | 2,737,304 | 2 | 1,622,054 | 1 | ||||||||||||||
Investments accounted for using equity method (Note 16) | 8,664,722 | 5 | 8,299,432 | 6 | 7,340,088 | 5 | ||||||||||||||
Property, plant and equipment (Notes 17 and 32) | 48,868,810 | 31 | 48,167,524 | 33 | 47,977,820 | 34 | ||||||||||||||
Right-of-use assets (Notes 18 and 32) | 2,265,010 | 1 | 2,260,380 | 2 | 2,200,365 | 2 | ||||||||||||||
Investment property, net (Note 19) | 4,107,414 | 3 | 4,090,086 | 3 | 3,932,290 | 3 | ||||||||||||||
Goodwill | 548,415 | - | 520,261 | - | 528,394 | - | ||||||||||||||
Deferred tax assets | 548,850 | - | 493,434 | - | 310,511 | - | ||||||||||||||
Prepayments for business facilities (Notes 17 and 19) | 1,382,094 | 1 | 1,040,934 | 1 | 1,221,461 | 1 | ||||||||||||||
Net defined benefit asset, non-current (Note 21) | 1,092,617 | 1 | 1,045,848 | 1 | 626,487 | 1 | ||||||||||||||
Other non-current assets, others (Note 32) | 355,776 | - | 371,605 | - | 318,820 | - | ||||||||||||||
Total non-current assets | 97,280,248 | 61 | 89,360,648 | 62 | 84,951,840 | 60 | ||||||||||||||
TOTAL ASSETS | $ | 159,149,327 | 100 | $ | 144,392,614 | 100 | $ | 141,576,095 | 100 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES (Note 4) | ||||||||||||||||||||
Current borrowings (Notes 20 and 32) | $ | 15,315,061 | 10 | $ | 9,887,216 | 7 | $ | 11,869,068 | 9 | |||||||||||
Short-term notes and bills payable (Note 20) | 17,634,324 | 11 | 15,744,335 | 11 | 16,841,672 | 12 | ||||||||||||||
Current financial liabilities at fair value through profit or loss (Note 7) | 7,396 | - | 28,414 | - | 19,390 | - | ||||||||||||||
Current contract liabilities (Note 23) | 480,245 | - | 391,775 | - | 447,825 | - | ||||||||||||||
Notes and accounts payable | 11,237,520 | 7 | 9,682,757 | 7 | 10,068,119 | 7 | ||||||||||||||
Accounts payable to related parties (Note 31) | 53,594 | - | 53,991 | - | 65,345 | - | ||||||||||||||
Other payables, others (Note 17) | 6,058,068 | 4 | 4,346,946 | 3 | 5,616,653 | 4 | ||||||||||||||
Current tax liabilities | 435,445 | - | 416,806 | - | 365,253 | - | ||||||||||||||
Current lease liabilities (Note 18) | 294,781 | - | 273,385 | - | 218,679 | - | ||||||||||||||
Other current liabilities, others (Note 11) | 1,181,635 | 1 | 1,172,732 | 1 | 1,241,856 | 1 | ||||||||||||||
Total current liabilities | 52,698,069 | 33 | 41,998,357 | 29 | 46,753,860 | 33 | ||||||||||||||
NON-CURRENT LIABILITIES (Note 4) | ||||||||||||||||||||
Non-current portion of non-current borrowings (Notes 20 and 32) | 18,940,073 | 12 | 23,652,786 | 16 | 21,019,364 | 15 | ||||||||||||||
Deferred tax liabilities | 3,684,366 | 2 | 3,656,140 | 3 | 3,568,358 | 3 | ||||||||||||||
Non-current lease liabilities (Note 18) | 531,050 | 1 | 578,820 | 1 | 577,133 | - | ||||||||||||||
Net defined benefit liability, non-current (Note 21) | 14,575 | - | 15,193 | - | 6,017 | - | ||||||||||||||
Other non-current liabilities, others | 453,892 | - | 420,110 | - | 413,405 | - | ||||||||||||||
Total non-current liabilities | 23,623,956 | 15 | 28,323,049 | 20 | 25,584,277 | 18 | ||||||||||||||
Total liabilities | 76,322,025 | 48 | 70,321,406 | 49 | 72,338,137 | 51 | ||||||||||||||
EQUITY ATTRIBUTABLE TO OWNERS OF PARENT (Notes 4, 22 and 27) | ||||||||||||||||||||
Share capital | 16,603,715 | 11 | 16,603,715 | 11 | 16,603,715 | 12 | ||||||||||||||
Capital surplus | 3,777,083 | 2 | 3,760,772 | 3 | 3,726,041 | 2 | ||||||||||||||
Retained earnings | 22,198,533 | 14 | 23,192,955 | 16 | 21,255,440 | 15 | ||||||||||||||
Other equity interest | 23,933,523 | 15 | 14,915,141 | 10 | 12,502,914 | 9 | ||||||||||||||
Total equity attributable to owners of parent | 66,512,854 | 42 | 58,472,583 | 40 | 54,088,110 | 38 | ||||||||||||||
NON-CONTROLLING INTERESTS | 16,314,448 | 10 | 15,598,625 | 11 | 15,149,848 | 11 | ||||||||||||||
Total equity | 82,827,302 | 52 | 74,071,208 | 51 | 69,237,958 | 49 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 159,149,327 | 100 | $ | 144,392,614 | 100 | $ | 141,576,095 | 100 | |||||||||||
The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated August 13, 2024)
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YFY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)
For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||
OPERATING REVENUE | |||||||||||||||||||||||
(Notes 4, 23 and 31) | |||||||||||||||||||||||
Net sales revenue | $ 16,700,337 | 85 | $ 16,084,398 | 89 | $ 32,146,884 | 85 | $ 31,627,488 | 89 | |||||||||||||||
Other operating revenue, net | 3,027,875 | 15 | 2,039,773 | 11 | 5,503,477 | 15 | 4,028,083 | 11 | |||||||||||||||
Total operating revenue | 19,728,212 | 100 | 18,124,171 | 100 | 37,650,361 | 100 | 35,655,571 | 100 | |||||||||||||||
OPERATING COSTS (Notes 13, | |||||||||||||||||||||||
24 and 31) | |||||||||||||||||||||||
Cost of sales | 14,922,226 | 76 | 14,338,400 | 79 | 28,249,156 | 75 | 28,207,693 | 79 | |||||||||||||||
Other operating costs | 2,268,801 | 11 | 1,527,658 | 9 | 4,164,632 | 11 | 3,043,676 | 9 | |||||||||||||||
Total operating costs | 17,191,027 | 87 | 15,866,058 | 88 | 32,413,788 | 86 | 31,251,369 | 88 | |||||||||||||||
GAINS ON CHANGES IN FAIR | |||||||||||||||||||||||
VALUE LESS COSTS TO | |||||||||||||||||||||||
SELL OF BIOLOGICAL | |||||||||||||||||||||||
ASSETS (Notes 4 and 14) | 1,345 | - | 322 | - | 1,671 | - | 8 | - | |||||||||||||||
GROSS PROFIT FROM | |||||||||||||||||||||||
OPERATIONS | 2,538,530 | 13 | 2,258,435 | 12 | 5,238,244 | 14 | 4,404,210 | 12 | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
(Notes 24 and 31) | |||||||||||||||||||||||
Selling expenses | 1,458,305 | 7 | 1,360,808 | 7 | 2,854,343 | 7 | 2,628,269 | 7 | |||||||||||||||
Administrative expenses | 1,011,333 | 5 | 956,469 | 5 | 1,991,567 | 5 | 1,884,518 | 5 | |||||||||||||||
Research and development | |||||||||||||||||||||||
expenses | 160,636 | 1 | 132,413 | 1 | 291,015 | 1 | 260,010 | 1 | |||||||||||||||
Total operating expenses | 2,630,274 | 13 | 2,449,690 | 13 | 5,136,925 | 13 | 4,772,797 | 13 | |||||||||||||||
NET OPERATING INCOME | |||||||||||||||||||||||
(LOSS) | (91,744) | - | (191,255) | (1) | 101,319 | 1 | (368,587) | (1) | |||||||||||||||
NON-OPERATING INCOME | |||||||||||||||||||||||
AND EXPENSES | |||||||||||||||||||||||
Finance costs, net (Notes 4 | |||||||||||||||||||||||
and 24) | (264,726) | (1) | (248,634) | (1) | (519,866) | (1) | (546,399) | (2) | |||||||||||||||
Share of profit of associates | |||||||||||||||||||||||
accounted for using equity | |||||||||||||||||||||||
method, net (Notes 4 and 16) | 318,255 | 2 | 394,232 | 2 | 533,042 | 1 | 671,687 | 2 | |||||||||||||||
Interest income | 110,961 | - | 80,801 | - | 217,631 | - | 195,487 | 1 | |||||||||||||||
Rent income (Notes 19 and 31) | 23,368 | - | 16,531 | - | 46,739 | - | 32,835 | - | |||||||||||||||
Dividend income | 35,463 | - | 56,545 | - | 35,463 | - | 56,545 | - | |||||||||||||||
Other income, others | 118,671 | 1 | 142,991 | 1 | 262,075 | 1 | 249,940 | 1 | |||||||||||||||
Gains on disposals of | |||||||||||||||||||||||
investment property | - | - | 58,344 | - | - | - | 58,970 | - | |||||||||||||||
Foreign exchange gains (losses) | |||||||||||||||||||||||
(Note 35) | 3,180 | - | (428,908) | (2) | 101,120 | - | (306,090) | (1) | |||||||||||||||
Gains on financial assets or | |||||||||||||||||||||||
liabilities at fair value | |||||||||||||||||||||||
through profit or loss | |||||||||||||||||||||||
(Note 4) | 51,174 | - | 475,350 | 3 | 217,721 | 1 | 392,775 | 1 | |||||||||||||||
Miscellaneous disbursements | (26,464) | - | (7,086) | - | (36,828) | - | (17,766) | - | |||||||||||||||
Gains (losses) on disposals of | |||||||||||||||||||||||
property, plant and | |||||||||||||||||||||||
equipment | (6,231) | - | (4,127) | - | (33,047) | - | 3,581 | - | |||||||||||||||
Total non-operating | |||||||||||||||||||||||
income and expenses | 363,651 | 2 | 536,039 | 3 | 824,050 | 2 | 791,565 | 2 | |||||||||||||||
(Continued) |
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YFY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)
For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||
PROFIT FROM CONTINUING | |||||||||||||||||||||||||||
OPERATIONS BEFORE TAX | $ | 271,907 | 2 | $ | 344,784 | 2 | $ | 925,369 | 3 | $ | 422,978 | 1 | |||||||||||||||
TAX EXPENSE (Notes 4 and 25) | (144,558) | (1) | (176,996) | (1) | (327,778) | (1) | (263,089) | (1) | |||||||||||||||||||
PROFIT FROM CONTINUING | |||||||||||||||||||||||||||
OPERATIONS | 127,349 | 1 | 167,788 | 1 | 597,591 | 2 | 159,889 | - | |||||||||||||||||||
OTHER COMPREHENSIVE | |||||||||||||||||||||||||||
INCOME (LOSS) (Notes 4 | |||||||||||||||||||||||||||
and 22) | |||||||||||||||||||||||||||
Components of other | |||||||||||||||||||||||||||
comprehensive income that | |||||||||||||||||||||||||||
will not be reclassified to | |||||||||||||||||||||||||||
profit or loss: | |||||||||||||||||||||||||||
Unrealized gains from | |||||||||||||||||||||||||||
investments in equity | |||||||||||||||||||||||||||
instruments measured at | |||||||||||||||||||||||||||
fair value through other | |||||||||||||||||||||||||||
comprehensive income | 4,921,775 | 25 | 959,716 | 5 | 7,534,936 | 20 | 538,722 | 2 | |||||||||||||||||||
Share of other | |||||||||||||||||||||||||||
comprehensive income of | |||||||||||||||||||||||||||
associates accounted for | |||||||||||||||||||||||||||
using equity method | 212,371 | 1 | 55,879 | - | 457,224 | 1 | 109,335 | - | |||||||||||||||||||
Components of other | |||||||||||||||||||||||||||
comprehensive income that | |||||||||||||||||||||||||||
will be reclassified to profit | |||||||||||||||||||||||||||
or loss: | |||||||||||||||||||||||||||
Exchange differences on | |||||||||||||||||||||||||||
translation | 372,871 | 2 | (89,848) | - | 1,825,623 | 5 | (99,055) | - | |||||||||||||||||||
Losses on hedging | |||||||||||||||||||||||||||
instruments | (3,667) | - | - | - | (6,759) | - | - | - | |||||||||||||||||||
Share of other | |||||||||||||||||||||||||||
comprehensive income | |||||||||||||||||||||||||||
(loss) of associates | |||||||||||||||||||||||||||
accounted for using equity | |||||||||||||||||||||||||||
method | 23,597 | - | 19,554 | - | 183,926 | - | (68,424) | - | |||||||||||||||||||
Other comprehensive | |||||||||||||||||||||||||||
income, net | 5,526,947 | 28 | 945,301 | 5 | 9,994,950 | 26 | 480,578 | 2 | |||||||||||||||||||
TOTAL COMPREHENSIVE | |||||||||||||||||||||||||||
INCOME | $ | 5,654,296 | 29 | $ | 1,113,089 | 6 | $ | 10,592,541 | 28 | $ | 640,467 | 2 | |||||||||||||||
PROFIT (LOSS), | |||||||||||||||||||||||||||
ATTRIBUTABLE TO: | |||||||||||||||||||||||||||
Profit, attributable to owners of | |||||||||||||||||||||||||||
parent | $ | 12,862 | - | $ | 190,347 | 1 | $ | 291,890 | 1 | $ | 193,184 | - | |||||||||||||||
Profit (loss), attributable to | |||||||||||||||||||||||||||
non-controlling interests | 114,487 | 1 | (22,559) | - | 305,701 | 1 | (33,295) | - | |||||||||||||||||||
$ | 127,349 | 1 | $ | 167,788 | 1 | $ | 597,591 | 2 | $ | 159,889 | - | ||||||||||||||||
COMPREHENSIVE INCOME | |||||||||||||||||||||||||||
(LOSS), ATTRIBUTABLE | |||||||||||||||||||||||||||
TO: | |||||||||||||||||||||||||||
Comprehensive income, | |||||||||||||||||||||||||||
attributable to owners of | |||||||||||||||||||||||||||
parent | $ | 5,198,704 | 27 | $ | 1,138,977 | 6 | $ | 9,518,294 | 25 | $ | 663,423 | 2 | |||||||||||||||
Comprehensive income (loss), | |||||||||||||||||||||||||||
attributable to | |||||||||||||||||||||||||||
non-controlling interests | 455,592 | 2 | (25,888) | - | 1,074,247 | 3 | (22,956) | - | |||||||||||||||||||
$ | 5,654,296 | 29 | $ | 1,113,089 | 6 | $ | 10,592,541 | 28 | $ | 640,467 | 2 | ||||||||||||||||
(Continued) |
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YFY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)
For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||
EARNINGS PER SHARE | |||||||||||
(Note 26) | |||||||||||
Basic earnings per share | $0.01 | $0.12 | $0.18 | $0.12 | |||||||
Diluted earnings per share | $0.01 | $0.12 | $0.18 | $0.12 |
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated August 13, 2024) | (Concluded) |
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YFY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)
Equity Attributable to Owners of Parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Surplus | Other Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Differences | Unrealized Gains | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Between | (Losses) on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration | Exchange | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
and Carrying | Differences on | Measured at Fair | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of | Changes in | Retained Earnings | Translation of | Value Through | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital | Subsidiaries | Ownership | Unappropriated | Foreign | Other | Gains (Losses) on | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares (In | Acquired or | Interests in | Consolidation | Retained | Financial | Comprehensive | Hedging | Non-controlling | ||||||||||||||||||||||||||||||||||||||||||||||||
Thousands) | Amount | Disposed | Subsidiaries | Excess | Others | Total | Legal Reserve | Special Reserve | Earnings | Total | Statements | Income | Instruments | Total | Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2023 | 1,660,372 | $ | 16,603,715 | $ | 1,867,508 | $ | 1,052,665 | $ | 293,124 | $ | 245,815 | $ | 3,459,112 | $ | 4,894,972 | $ | 3,995,020 | $ | 13,646,478 | $ | 22,536,470 | $ | (357,174 ) | $ | 12,394,281 | $ | - | $ | 54,636,404 | $ | 14,956,989 | $ | 69,593,393 | |||||||||||||||||||||||
Appropriation of 2022 earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve appropriated | - | - | - | - | - | - | - | 211,224 | - | (211,224 ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Cash dividends of ordinary share | - | - | - | - | - | - | - | - | - | (1,494,334 ) | (1,494,334 ) | - | - | - | (1,494,334 ) | - | (1,494,334 ) | |||||||||||||||||||||||||||||||||||||||
Reversal of special reserve | - | - | - | - | - | - | - | - | (2,483 ) | 2,483 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Cash dividends distributed by subsidiaries | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (557,974 ) | (557,974 ) | |||||||||||||||||||||||||||||||||||||||
Changes in equity of associates accounted for using equity method | - | - | - | - | - | 8,857 | 8,857 | - | - | (1,701 ) | (1,701 ) | - | - | - | 7,156 | 336 | 7,492 | |||||||||||||||||||||||||||||||||||||||
Other changes in capital surplus | - | - | - | - | - | (14 ) | (14 ) | - | - | - | - | - | - | - | (14 ) | - | (14 ) | |||||||||||||||||||||||||||||||||||||||
Difference between consideration and carrying amount of subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
acquired or disposed | - | - | 4,000 | - | - | - | 4,000 | - | - | - | - | 604 | - | - | 4,604 | 13,192 | 17,796 | |||||||||||||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries | - | - | - | 254,086 | - | - | 254,086 | - | - | - | - | 16,785 | - | - | 270,871 | 760,261 | 1,031,132 | |||||||||||||||||||||||||||||||||||||||
Profit (loss) for the six months ended June 30, 2023 | - | - | - | - | - | - | - | - | - | 193,184 | 193,184 | - | - | - | 193,184 | (33,295 ) | 159,889 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | - | - | (103,510 ) | 573,749 | - | 470,239 | 10,339 | 480,578 | |||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | 193,184 | 193,184 | (103,510 ) | 573,749 | - | 663,423 | (22,956 ) | 640,467 | |||||||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments designated at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
through other comprehensive income | - | - | - | - | - | - | - | - | - | 21,821 | 21,821 | - | (21,821 ) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2023 | 1,660,372 | $ | 16,603,715 | $ | 1,871,508 | $ | 1,306,751 | $ | 293,124 | $ | 254,658 | $ | 3,726,041 | $ | 5,106,196 | $ | 3,992,537 | $ | 12,156,707 | $ | 21,255,440 | $ | (443,295 ) | $ | 12,946,209 | $ | - | $ | 54,088,110 | $ | 15,149,848 | $ | 69,237,958 | |||||||||||||||||||||||
BALANCE AT JANUARY 1, 2024 | 1,660,372 | $ | 16,603,715 | $ | 1,871,508 | $ | 1,326,607 | $ | 293,124 | $ | 269,533 | $ | 3,760,772 | $ | 5,106,196 | $ | 3,992,537 | $ | 14,094,222 | $ | 23,192,955 | $ | (659,626 ) | $ | 15,578,302 | $ | (3,535 ) | $ | 58,472,583 | $ | 15,598,625 | $ | 74,071,208 | |||||||||||||||||||||||
Appropriation of 2023 earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve appropriated | - | - | - | - | - | - | - | 215,331 | - | (215,331 ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Cash dividends of ordinary share | - | - | - | - | - | - | - | - | - | (1,494,334 ) | (1,494,334 ) | - | - | - | (1,494,334 ) | - | (1,494,334 ) | |||||||||||||||||||||||||||||||||||||||
Cash dividends distributed by subsidiaries | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (373,427 ) | (373,427 ) | |||||||||||||||||||||||||||||||||||||||
Changes in equity of associates accounted for using equity method | - | - | - | - | - | 14,677 | 14,677 | - | - | 2,920 | 2,920 | - | (2,920 ) | - | 14,677 | 694 | 15,371 | |||||||||||||||||||||||||||||||||||||||
Other changes in capital surplus | - | - | - | - | - | (255 ) | (255 ) | - | - | - | - | - | - | - | (255 ) | - | (255 ) | |||||||||||||||||||||||||||||||||||||||
Change in non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 13,211 | 13,211 | |||||||||||||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries | - | - | - | 1,889 | - | - | 1,889 | - | - | - | - | - | - | - | 1,889 | 1,098 | 2,987 | |||||||||||||||||||||||||||||||||||||||
Profit for the six months ended June 30, 2024 | - | - | - | - | - | - | - | - | - | 291,890 | 291,890 | - | - | - | 291,890 | 305,701 | 597,591 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | - | - | - | - | - | - | - | - | - | - | - | 1,696,742 | 7,533,622 | (3,960 ) | 9,226,404 | 768,546 | 9,994,950 | |||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | - | - | - | - | - | - | - | - | - | 291,890 | 291,890 | 1,696,742 | 7,533,622 | (3,960 ) | 9,518,294 | 1,074,247 | 10,592,541 | |||||||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments designated at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
through other comprehensive income | - | - | - | - | - | - | - | - | - | 205,102 | 205,102 | - | (205,102 ) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2024 | 1,660,372 | $ | 16,603,715 | $ | 1,871,508 | $ | 1,328,496 | $ | 293,124 | $ | 283,955 | $ | 3,777,083 | $ | 5,321,527 | $ | 3,992,537 | $ | 12,884,469 | $ | 22,198,533 | $ | 1,037,116 | $ | 22,903,902 | $ | (7,495 ) | $ | 66,512,854 | $ | 16,314,448 | $ | 82,827,302 | |||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated August 13, 2024)
- 7 -
YFY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)
For the Six Months Ended | |||||||
June 30 | |||||||
2024 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES, INDIRECT | |||||||
METHOD | |||||||
Profit before tax | $ | 925,369 | $ | 422,978 | |||
Adjustments to reconcile profit (loss) | |||||||
Depreciation and amortization expenses | 2,306,314 | 2,215,959 | |||||
Expected credit loss (gain) | (1,912) | 25,297 | |||||
Net gain on financial assets or liabilities at fair value through profit | |||||||
or loss | (217,721) | (392,775) | |||||
Finance costs | 519,866 | 546,399 | |||||
Interest income | (217,631) | (195,487) | |||||
Dividend income | (35,463) | (56,545) | |||||
Share-based payments | 3,092 | 3,155 | |||||
Share of profit of associates accounted for using equity method | (533,042) | (671,687) | |||||
Loss (gain) on disposal of property, plant and equipment | 33,047 | (3,581) | |||||
Gain on disposal of investment properties | - | (58,970) | |||||
Loss (gain) on disposal of investments | (212) | 30 | |||||
Write-downs of inventories reversed | (10,484) | (24,991) | |||||
Reversal of impairment loss on non-financial assets | (7,289) | (3,219) | |||||
Unrealized foreign exchange loss (gain) | (246,697) | 139,638 | |||||
Gain arising from changes in fair value less costs to sell of | |||||||
biological assets | (1,671) | (8) | |||||
Loss (gain) from lease modification | 472 | (247) | |||||
Changes in operating assets and liabilities | |||||||
Decrease in financial assets at fair value through profit or loss, | |||||||
mandatorily measured at fair value | 466,622 | 140,039 | |||||
Decrease (increase) in notes receivable, net | (304,300) | 111,275 | |||||
Decrease (increase) in accounts receivable, net | (471,157) | 1,130,380 | |||||
Decrease (increase) in accounts receivable due from related parties, | |||||||
net | 51,359 | (6,812) | |||||
Increase in current inventories | (643,780) | (122,999) | |||||
Increase in current biological assets | (102,869) | (53,812) | |||||
Decrease (increase) in prepayments | (153,383) | 146,499 | |||||
Decrease (increase) in other current assets, others | 323,262 | (197,636) | |||||
Decrease in financial liabilities held for trading | (100,173) | (83,416) | |||||
Increase (decrease) in current contract liabilities | 77,520 | (45,983) | |||||
Increase (decrease) in notes and accounts payable | 1,257,281 | (774,938) | |||||
Decrease in accounts payable to related parties | (397) | (45,525) | |||||
Decrease in other payable, others | (126,834) | (507,778) | |||||
Decrease in other current liabilities, others | (224,655) | (8,425) | |||||
Decrease in net defined benefit liability, non-current | (47,387) | (52,051) | |||||
Cash inflow generated from operations | 2,517,147 | 1,574,764 | |||||
Interest received | 219,205 | 189,510 | |||||
Dividends received | 9,487 | 1,365 | |||||
(Continued) |
- 8 -
YFY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)
For the Six Months Ended | |||||||
June 30 | |||||||
2024 | 2023 | ||||||
Interest paid | $ | (529,228) | $ | (561,870) | |||
Income taxes paid | (402,635) | (507,464) | |||||
Net cash flows generated from operating activities | 1,813,976 | 696,305 | |||||
CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||
Acquisition of financial assets at fair value through other | |||||||
comprehensive income | (399,857) | (1,251,478) | |||||
Proceeds from disposal of financial assets at fair value through other | |||||||
comprehensive income | 325,435 | 10,829 | |||||
Decrease (increase) in financial assets at amortized cost | (152,908) | 39,827 | |||||
Derecognition of financial liabilities for hedging | (8,123) | - | |||||
Proceeds from disposal of investments accounted for using equity | |||||||
method | - | 10,348 | |||||
Acquisition of property, plant and equipment | (2,567,475) | (1,758,556) | |||||
Proceeds from disposal of property, plant and equipment | 15,723 | 16,378 | |||||
Acquisition of use-of-right assets | - | (71,367) | |||||
Acquisition of investment properties | (9,634) | - | |||||
Proceeds from disposal of investment properties | - | 64,742 | |||||
Decrease (increase) in other financial assets | (119,813) | 368,379 | |||||
Increase in other non-current assets, others | (18,366) | (42,299) | |||||
Net cash flows used in investing activities | (2,935,018) | (2,613,197) | |||||
CASH FLOWS GENERATED FROM FINANCING ACTIVITIES | |||||||
Increase in current borrowings | 5,380,671 | 3,035,199 | |||||
Increase in short-term notes and bills payable | 1,889,989 | 14,118,556 | |||||
Repayments of long-term debt | (4,712,713) | (15,325,198) | |||||
Payments of lease liabilities | (154,330) | (126,493) | |||||
Increase (decrease) in other non-current liabilities, others | 16,438 | (15,752) | |||||
Change in non-controlling interests | 8,108 | 981,415 | |||||
Overdue dividends paid | (255) | (14) | |||||
Net cash flows generated from financing activities | 2,427,908 | 2,667,713 | |||||
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH | |||||||
EQUIVALENTS | 425,927 | 23,193 | |||||
(Continued) |
- 9 -