Harvatek : 2022Q4 Financial Statements _Consolidated

Stock code: 6168

Harvatek Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditor's Report

2022 & 2021

Address: No. 18, Ln. 522, Sec. 5, Zhonghua Rd., Hsinchu City

Tel No.: [phone]

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Consolidated Financial Statements

Table of Contents

		Item	Page
I.	Cover Page	1
II.	Table of Contents	2
III.	Declaration	3
IV.	Independent Auditor's Report	4~9
V.	Consolidated Balance Sheet	10~11
VI.	Consolidated Statement of Comprehensive Income	12
VII. Consolidated Statement of Changes in Equity	13
VIII. Consolidated Statement of Cash Flows	14
IX. Notes to the Consolidated Financial Statements
	(I)	Company History	15
	(II)	Date and Procedure for Approval of Financial	15
		Statements
	(III)	Application of Newly Issued and Revised Standards and	15
		Interpretations
	(IV)	Summary of Significant Accounting Policies	18~48
	(V)	Significant Accounting Judgments, Estimates and	48~49
		Assumptions
	(VI)	Contents of Significant Accounts	49~81
	(VII)	Interest Party Transactions	81~83
	(VIII)	Pledged Assets	83
	(IX)	Significant Contingent Liabilities and Unrecognized	84
		Contract Commitments
	(X)	Significant Disaster Losses	84
	(XI)	Significant Subsequent Events	84
	(XII)	Others	84~97
	(XIII)	Additional Disclosures
		1. Information on Significant Transactions	97~98
		2. Information on Investees	98
		3. Information on investment in mainland China	98
		4. Major Shareholders Information	98
	(XIV) Department Information	98~99

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Declaration

The companies that should be included in the consolidated financial statements of affiliated enterprises under the "Criteria Governing Preparation of Consolidated Business Reports, Consolidated Financial Statements and Affiliation Reports of Affiliated Enterprises" in 2022 (from January 1, 2022 to December 31, 2022) are the same as those that should be included in the consolidated financial statements of parent and subsidiary companies under IFRS 10. The information that shall be disclosed in the consolidated financial statements of affiliated enterprises has been disclosed in the previous consolidated financial statements of the parent and subsidiary companies, and therefore the consolidated financial statements of affiliated enterprises need not additionally be prepared.

Hereby Declared

Harvatek Corporation

Chairman: Wang, Ping-Lung

March 9, 2023

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Independent Auditor's Report

To Harvatek Corporation:

Opinion

We have audited the accompanying consolidated balance sheets of Harvatek Corporation (the "Company") and its subsidiaries as of 31 December, 2022 and 2021, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the period of 1 January to 31 December in 2022 and 2021, and notes to the consolidated financial statements (including the summary of significant accounting policies).

In our opinion, based on our audits and the audit reports of other independent auditors (please refer to the "Others" paragraph), the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of 31 December 2022, and 2021, in conformity with the requirements of the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and "International Financial Reporting Standards", "International Accounting Standards", "Interpretations developed by the International Financial Reporting Interpretations Committee" and "SIC interpretations" endorsed and issued into effect by the Financial Supervisory Commission.

Basis for Opinion

We conducted the audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statement by Certified Public Accountants and auditing standards generally accepted. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of Harvatek Corporation, Ltd. and its subsidiaries in accordance with the Norms of Professional Ethics for Certified Public Accountants (the "Norm"), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the audit reports of other independent auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key Audit Matters

Key audit matters are those that, in our professional judgment, were of the most significance in our audits of the 2022 consolidated financial statements of Harvatek Corporation and its subsidiaries. These matters were addressed in the context of our audits of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue recognition

The main revenue sources of Harvatek Corporation and its subsidiaries in 2022 are revenue from sales of goods. Since the revenue is recognized when Harvatek Corporation and its subsidiaries transfer the promised products or integrated services to customers to fulfill the performance obligations, and trade terms of the products or integrated services agreed in the contracts are different, resulting in different points in time for fulfilling the performance obligations, and thus these performance obligations and the points in time for fulfilling them need to be judged and determined. Accordingly, we have determined this as a key audit matter.

Our procedures for auditing operating revenue included but were not limited to: Understanding and assessing the internal control system established by management over operating revenue and testing it against critical control points; assessing the appropriateness of revenue recognition accounting policies, analyzing product-specific gross margins and selecting certain samples of operating revenue to perform transaction-specific tests; reviewing the significant transaction terms in the contracts to identify whether the conditions for revenue recognition have met the performance obligations, and selecting samples to review the transaction certificates for a period around the balance sheet date to confirm the appropriateness of the point of revenue recognition; selecting samples of sales returns and discounts to verify the contents and amounts within related documents; and reviewing the post period sales returns and discounts situation. We also considered the appropriateness of the accounting policies and disclosures in Note 4 and Note 6 of the consolidated financial statements regarding the recognition of operating revenue.

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