FocalTech Systems Co., Ltd. and
Subsidiaries
Consolidated Financial Statements for the
Nine Months Ended September 30, 2022 and 2021
Notice to Readers
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 language financial statements shall prevail.
This is the translation of the financial statements. CPAs do not audit or review on this translation.
INDEPENDENT AUDITORS' REVIEW REPORT
The Board of Directors and Shareholders
FocalTech Systems Co., Ltd.
Introduction
We have reviewed the accompanying consolidated balance sheets of FocalTech Systems Co., Ltd. and its subsidiaries (collectively, the "Company") as of September 30, 2022 and 2021, the related consolidated statements of comprehensive income for the three months ended September 30, 2022 and 2021 and for the nine months ended September 30, 2022 and 2021, the consolidated statements of changes in equity and of cash flows for the six months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies(collectively referred to as the "consolidated financial statements"). 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 Statement of Auditing Standards No. 65 "Review of 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 Note 12 to the consolidated financial statements, the financial statements of non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of September 30, 2022 and 2021, combined total assets of these non-significant subsidiaries were NT$2,265,707 thousand and NT$427,255 thousand, respectively, representing 10% and 2%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$1,071,062 thousand and NT$68,590 thousand, respectively, representing 8% and 1%, respectively, of the consolidated total liabilities; for the three months and nine months ended September 30, 2022 and 2021, the amounts of combined comprehensive income (loss) of these subsidiaries were NT($7,509) thousand, NT($43,894) thousand, NT($72,307) thousand and NT($159,576) thousand ,respectively, representing 0%, (2%), 5%, (3%).
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 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 give a true and fair view of the consolidated financial position of the Group as of September 30, 2022 and 2021, its consolidated financial performance and its consolidated cash flows for the three months ended September 30, 2022 and 2021 and for the nine months ended September 30, 2022 and 2021 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 Chih-Ming Shao and Ming-Hsing Cho.
Deloitte & Touche
Taipei, Taiwan
Republic of China
November 11, 2022
This is the translation of the financial statements. CPAs do not audit or review on this translation.
FOCALTECH SYSTEMS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)
September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
(Reviewed) | (Audited) | (Reviewed) | |||||||||||||||||||||||||
ASSETS | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||||||||
Cash and cash equivalents (Note 6) | $ | 5,651,666 | 25 | $ | 6,456,988 | 26 | $ | 8,028,997 | 37 | ||||||||||||||||||
Financial assets at fair value through profit or loss - current (Note 7) | - | - | 119,218 | 1 | 118,195 | 1 | |||||||||||||||||||||
Financial assets at fair value through other comprehensive income - current | |||||||||||||||||||||||||||
(Note 8) | - | - | 55,590 | - | 56,302 | - | |||||||||||||||||||||
Accounts receivables, net (Note 10) | 1,215,112 | 5 | 3,255,081 | 13 | 2,575,410 | 12 | |||||||||||||||||||||
Inventories (Note 11) | 7,064,135 | 31 | 3,822,218 | 15 | 2,493,821 | 12 | |||||||||||||||||||||
Other financial assets (Note 9) | 696,913 | 3 | 3,879,862 | 15 | 963,546 | 5 | |||||||||||||||||||||
Other current assets | 361,778 | 2 | 536,459 | 2 | 486,573 | 2 | |||||||||||||||||||||
Total current assets | 14,989,604 | 66 | 18,125,416 | 72 | 14,722,844 | 69 | |||||||||||||||||||||
NON-CURRENT ASSETS | |||||||||||||||||||||||||||
Financial assets at fair value through profit or loss - non-current (Note 7) | 466,459 | 2 | 412,779 | 1 | 336,632 | 2 | |||||||||||||||||||||
Financial assets at fair value through other comprehensive income - non-current | |||||||||||||||||||||||||||
(Note 8) | 187,345 | 1 | 178,404 | 1 | 181,941 | 1 | |||||||||||||||||||||
Property, plant and equipment (Note 13) | 2,530,122 | 11 | 2,468,605 | 10 | 1,325,179 | 6 | |||||||||||||||||||||
Goodwill (Notes 14) | 1,237,268 | 6 | 1,237,268 | 5 | 1,237,268 | 6 | |||||||||||||||||||||
Other intangible assets (Note 15) | 67,676 | - | 47,228 | - | 51,214 | - | |||||||||||||||||||||
Deferred tax assets | 352,747 | 2 | 9,914 | - | 42,188 | - | |||||||||||||||||||||
Refundable deposits(Note 16) | 2,746,308 | 12 | 2,841,745 | 11 | 2,481,317 | 11 | |||||||||||||||||||||
Other non-current assets (Note 32) | 57,316 | - | 10,575 | - | 1,089,813 | 5 | |||||||||||||||||||||
Total non-current assets | 7,645,241 | 34 | 7,206,518 | 28 | 6,745,552 | 31 | |||||||||||||||||||||
TOTAL | $ | 22,634,845 | 100 | $ | 25,331,934 | 100 | $ | 21,468,396 | 100 | ||||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||||||||
Short-term borrowings (Note 17) | $ | 3,426,058 | 15 | $ | 301,712 | 1 | $ | 859,664 | 4 | ||||||||||||||||||
Accounts payables (Note 18) | 2,046,843 | 9 | 2,620,160 | 10 | 2,166,241 | 10 | |||||||||||||||||||||
Other payables (Note 19) | 1,762,469 | 8 | 1,596,958 | 6 | 1,319,945 | 6 | |||||||||||||||||||||
Dividends payables (Note 28) | - | - | - | - | 700,000 | 3 | |||||||||||||||||||||
Current tax liabilities (Notes 4) | 694,543 | 3 | 1,786,309 | 7 | 1,327,561 | 6 | |||||||||||||||||||||
Other current liabilities (Notes 23) | 67,242 | - | 110,356 | 1 | 117,312 | 1 | |||||||||||||||||||||
Total current liabilities | 7,997,155 | 35 | 6,415,495 | 25 | 6,490,723 | 30 | |||||||||||||||||||||
NON-CURRENT LIABILITIES | |||||||||||||||||||||||||||
Long-term borrowings (Note 17) | 986,840 | 5 | 786,840 | 3 | 786,840 | 4 | |||||||||||||||||||||
Deferred tax liabilities | 238,547 | 1 | 51,584 | - | 59,531 | - | |||||||||||||||||||||
Net defined benefit liabilities - non-current (Note 4) | 21,682 | - | 22,140 | - | 23,015 | - | |||||||||||||||||||||
Guarantee deposits received(Notes 21) | 4,579,403 | 20 | 4,397,513 | 18 | 1,902,874 | 9 | |||||||||||||||||||||
Other non-current liabilities | 10,400 | - | 10,400 | - | 10,400 | - | |||||||||||||||||||||
Total non-current liabilities | 5,836,872 | 26 | 5,268,477 | 21 | 2,782,660 | 13 | |||||||||||||||||||||
Total liabilities | 13,834,027 | 61 | 11,683,972 | 46 | 9,273,383 | 43 | |||||||||||||||||||||
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT (Notes 22 and 27) | |||||||||||||||||||||||||||
Share capital | |||||||||||||||||||||||||||
Ordinary shares | 2,162,377 | 9 | 2,162,367 | 9 | 2,165,215 | 10 | |||||||||||||||||||||
Capital surplus | |||||||||||||||||||||||||||
Additional paid-in capital | 4,751,572 | 21 | 4,737,390 | 19 | 4,736,211 | ` | 22 | ||||||||||||||||||||
Treasury shares | 124,926 | 1 | 79,917 | - | 79,963 | 1 | |||||||||||||||||||||
Employee share options | 59,331 | - | 65,873 | - | 45,871 | - | |||||||||||||||||||||
Restricted stock for employees | 1,095,945 | 5 | 1,145,555 | 5 | 1,212,385 | 6 | |||||||||||||||||||||
Employee share options - expired | 34,448 | - | 34,134 | - | 34,134 | - | |||||||||||||||||||||
Total capital surplus | 6,066,222 | 27 | 6,062,869 | 24 | 6,108,564 | 29 | |||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||||||
Legal reserve | 712,562 | 3 | 101,230 | - | 101,230 | - | |||||||||||||||||||||
Special reserve | 211,479 | 1 | 122,316 | - | 122,316 | 1 | |||||||||||||||||||||
Undistributed earnings | 159,998 | 1 | 6,202,079 | 25 | 4,873,886 | 23 | |||||||||||||||||||||
Total retained earnings | 1,084,039 | 5 | 6,425,625 | 25 | 5,097,432 | 24 | |||||||||||||||||||||
Other equity | (314,847) | (1) | (1,025,199) | (4) | (1,193,149) | (6) | |||||||||||||||||||||
Treasury shares | (213,824) | (1) | - | - | (371) | - | |||||||||||||||||||||
Equity attributable to owners of the parent | 8,783,967 | 39 | 13,625,662 | 54 | 12,177,691 | 57 | |||||||||||||||||||||
NON-CONTROLLING INTERESTS (Note 22) | 16,851 | - | 22,300 | - | 17,322 | - | |||||||||||||||||||||
Total equity | 8,800,818 | 39 | 13,647,962 | 54 | 12,195,013 | 57 | |||||||||||||||||||||
TOTAL | $ | 22,634,845 | 100 | $ | 25,331,934 | 100 | $ | 21,468,396 | 100 | ||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
This is the translation of the financial statements. CPAs do not audit or review on this translation.
FOCALTECH SYSTEMS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||
REVENUE (Note 23) | $ 2,370,317 | 100 | $ 6,272,422 | 100 | $ 9,590,291 | 100 | $ 16,394,543 | 100 | ||||||||||||||||||||||
COSTS OF SALES (Note 11 | ||||||||||||||||||||||||||||||
and 24) | (4,369,610) | (184) | (2,857,205) | (46) | (8,921,002) | (93) | (8,442,986) | (51) | ||||||||||||||||||||||
GROSS (LOSS) PROFIT | (1,999,293) | (84) | 3,415,217 | 54 | 669,289 | 7 | 7,951,557 | 49 | ||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
(Note 24, 27, 29 and 31) | ||||||||||||||||||||||||||||||
Selling and marketing | ||||||||||||||||||||||||||||||
expenses | (137,921) | (6) | (153,340) | (3) | (399,398) | (4) | (398,136) | (2) | ||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||||||||
expenses | (145,431) | (6) | (190,348) | (3) | (437,569) | (5) | (449,917) | (3) | ||||||||||||||||||||||
Research and development | ||||||||||||||||||||||||||||||
expenses | (671,579) | (28) | (654,004) | (10) | (2,091,413) | (22) | (1,721,637) | (11) | ||||||||||||||||||||||
Total operating | ||||||||||||||||||||||||||||||
expenses | (954,931) | (40) | (997,692) | (16) | (2,928,380) | (31) | (2,569,690) | (16) | ||||||||||||||||||||||
OPERATING (LOSS) | ||||||||||||||||||||||||||||||
INCOME | (2,954,224) | (124) | 2,417,525 | 38 | (2,259,091) | (24) | 5,381,867 | 33 | ||||||||||||||||||||||
NON-OPERATING INCOME | ||||||||||||||||||||||||||||||
AND EXPENSES | ||||||||||||||||||||||||||||||
Finance costs(Note 24) | (15,025) | (1) | (2,724) | - | (25,183) | - | (7,481) | - | ||||||||||||||||||||||
Interest income | 18,807 | 1 | 9,069 | - | 45,467 | - | 23,647 | - | ||||||||||||||||||||||
Gain (loss) on financial | ||||||||||||||||||||||||||||||
assets and liabilities at | ||||||||||||||||||||||||||||||
fair value through profit | ||||||||||||||||||||||||||||||
or loss | (28,213) | (1) | (179,102) | (3) | (79,468) | (1) | 80,219 | - | ||||||||||||||||||||||
Other gains and losses - net | 25,155 | 1 | 151,615 | 3 | 174,220 | 2 | 347,445 | 2 | ||||||||||||||||||||||
Gain (loss) on foreign | ||||||||||||||||||||||||||||||
exchange | (14,956) | (1) | 8,719 | - | 279,178 | 3 | (41,160) | - | ||||||||||||||||||||||
Total non-operating | ||||||||||||||||||||||||||||||
income and | ||||||||||||||||||||||||||||||
expenses | (14,232) | (1) | (12,423) | - | 394,214 | 4 | 402,670 | 2 | ||||||||||||||||||||||
(LOSS) INCOME BEFORE | ||||||||||||||||||||||||||||||
INCOME TAX | (2,968,456) | (125) | 2,405,102 | 38 | (1,864,877) | (20) | 5,784,537 | 35 | ||||||||||||||||||||||
INCOME TAX EXPENSE | ||||||||||||||||||||||||||||||
(BENEFIT) (Note 25) | 198,222 | 8 | (577,633) | (9) | (99,713) | (1) | (1,021,027) | (6) | ||||||||||||||||||||||
NET (LOSS) INCOME | (2,770,234) | (117) | 1,827,469 | 29 | (1,964,590) | (21) | 4,763,510 | 29 | ||||||||||||||||||||||
OTHER COMPREHENSIVE | ||||||||||||||||||||||||||||||
INCOME | ||||||||||||||||||||||||||||||
Items that may be | ||||||||||||||||||||||||||||||
reclassified subsequently | ||||||||||||||||||||||||||||||
to profit or loss: | ||||||||||||||||||||||||||||||
Exchange differences | ||||||||||||||||||||||||||||||
from translating the | ||||||||||||||||||||||||||||||
financial statements of | ||||||||||||||||||||||||||||||
foreign operations | 168,225 | 7 | (7,945) | - | 380,081 | 4 | (95,003) | (1) | ||||||||||||||||||||||
(Continued) |
This is the translation of the financial statements. CPAs do not audit or review on this translation.
FOCALTECH SYSTEMS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||
Unrealized (loss) gain | ||||||||||||||||||||||||||||||||||||||
from debt instrument | ||||||||||||||||||||||||||||||||||||||
investments measured | ||||||||||||||||||||||||||||||||||||||
at fair value through | ||||||||||||||||||||||||||||||||||||||
other comprehensive | ||||||||||||||||||||||||||||||||||||||
loss | (3,314) | - | (1,082) | - | (12,415) | - | (878) | - | ||||||||||||||||||||||||||||||
Items that may be | ||||||||||||||||||||||||||||||||||||||
reclassified | ||||||||||||||||||||||||||||||||||||||
subsequently to | ||||||||||||||||||||||||||||||||||||||
profit or loss | 164,911 | 7 | (9,027) | - | 367,666 | 4 | (95,881) | (1) | ||||||||||||||||||||||||||||||
Total other | ||||||||||||||||||||||||||||||||||||||
comprehensive loss | 164,911 | 7 | (9,027) | - | 367,666 | 4 | (95,881) | (1) | ||||||||||||||||||||||||||||||
TOTAL COMPREHENSIVE | ||||||||||||||||||||||||||||||||||||||
INCOME FOR THE | ||||||||||||||||||||||||||||||||||||||
PERIOD | $ (2,605,323) | (110) | $ | 1,818,442 | 29 | $ (1,596,924) | (17) | $ | 4,667,629 | 28 | ||||||||||||||||||||||||||||
NET (LOSS) INCOME | ||||||||||||||||||||||||||||||||||||||
ATTRIBUTABLE TO: | ||||||||||||||||||||||||||||||||||||||
Owners of the Company | $ (2,760,461) | (117) | $ | 1,833,297 | 29 | $ (1,941,586) | (20) | $ | 4,785,388 | 29 | ||||||||||||||||||||||||||||
Non-controlling interests | (9,773) | - | (5,828) | - | (23,004) | - | (21,878) | - | ||||||||||||||||||||||||||||||
$ | (2,770,234) | (117) | $ | 1,827,469 | 29 | $ | (1,964,590) | (20) | $ | 4,763,510 | 29 | |||||||||||||||||||||||||||
TOTAL COMPREHENSIVE | ||||||||||||||||||||||||||||||||||||||
INCOME | ||||||||||||||||||||||||||||||||||||||
ATTRIBUTABLE TO: | ||||||||||||||||||||||||||||||||||||||
Owners of the Company | $ (2,604,307) | (110) | $ | 1,824,311 | 29 | $ (1,591,475) | (17) | $ | 4,691,940 | 28 | ||||||||||||||||||||||||||||
Non-controlling interests | (1,016) | - | (5,869) | - | (5,449) | - | (24,311) | - | ||||||||||||||||||||||||||||||
$ | (2,605,323) | (110) | $ | 1,818,442 | 29 | $ | (1,596,924) | (17) | $ | 4,667,629 | 28 | |||||||||||||||||||||||||||
(LOSS) EARNINGS PER | ||||||||||||||||||||||||||||||||||||||
SHARE (Note 26) | $ (13.57) | $ | 9.02 | $ (9.53) | $ | 23.73 | ||||||||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||||||||||||||
Diluted | $ | 8.58 | $ | 22.52 | ||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements
(Concluded)
This is the translation of the financial statements. CPAs do not audit or review on this translation.
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FocalTech Systems Co. Ltd. published this content on 11 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2023 08:07:06 UTC.