Alpha : 2023 Q2 Consolidated BS, IS and CF (English Version)

ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Balance Sheet June 30, 2023, December 31 and June 30, 2022

(Expressed in thousands of New Taiwan dollars)

		2023/6/30			2022/12/31			2022/6/30				2023/6/30			2022/12/31			20226/30
Assets		Amount	%		Amount	%		Amount	%	Liabilities and Equity		Amount	%		Amount	%		Amount	%
Current assets :										Current liabilities :
Cash and cash equivalents	$	4,948,207	19	$	4,084,284	15	$	4,474,010	15	Current borrowings	$	3,920,339	15	$	3,936,093	14	$	6,651,002	23
Current financial assets at fair										Current financial liabilities at fair
value through profit or loss		5,337	-		61,084	-		64,975	-	value through profit or loss		14,349	-		9,836	-		11,026	-
Current financial assets at										Accounts payable(including
amortised cost		20,000	-		-	-		29,980	-	related parties)		3,171,865	12		5,031,113	19		5,157,874	18
Notes and accounts receivable,
net (including related parties)		5,099,697	20		5,598,816	21		5,989,515	20	Accrued expenses		681,678	3		845,618	3		658,853	2
										Dividends payable, non-cash
Inventories		7,418,871	29		9,424,252	35		11,352,084	39	assets distributions		1,211,886	5		-	-		561,737	2
Other current assets		1,066,946	4		1,074,308	4		913,853	4	Current tax liabilities		322,501	1		475,146	2		292,202	1
		18,559,058	72		20,242,744	75		22,824,417	78	Current provisions		392,805	2		385,198	1		269,150	1
Non-current assets :										Bonds payable, current portion		-	-		-	-		411,185	1
Non-current financial assets at fair
value through other										Long-term borrowings, current
comprehensive income		171,994	1		171,994	-		19,094	-	portion		-	-		26,000	-		-	-
Non-current financial assets at
amortised cost		146,025	-		144,873	-		137,745	-	Other current liabilities, others		2,079,592	8		2,338,091	9		1,895,867	6
Property, plant and equipment		4,383,100	17		4,222,057	16		3,810,736	13			11,795,015	46		13,047,095	48		15,908,896	54
Right-of-use assets		590,150	2		427,860	2		436,258	1	Non-current liabilities :
Intangible assets		1,241,417	5		1,304,437	5		1,361,386	5	Bonds payable		496,540	2		-	-		-	-
										Non-current portion of non-current
Deferred tax assets		205,318	1		222,151	1		226,344	1	borrowings		-	-		-	-		26,000	-
Other non-current assets		440,272	2		396,898	1		439,018	2	Non-current lease liabilities		306,861	1		217,451	1		226,297	1
										Net defined benefit liability, non-
		7,178,276	28		6,890,270	25		6,430,581	22	current		103,996	-		145,642	-		194,804	1
										Other non-current liabilities		150,090	1		166,207	1		163,609	-
												1,057,487	4		529,300	2		610,710	2
										Total liabilities		12,852,502	50		13,576,395	50		16,519,606	56
										Equity :
										Ordinary share		5,417,185	21		5,417,185	20		5,417,185	19
										Capital surplus		2,575,119	10		2,544,401	9		2,538,226	9
										Retained earnings :
										Legal reserve		1,266,681	5		1,169,989	4		1,169,989	4
										Special reserve		226,548	1		447,091	2		447,091	2
										earnings		640,358	2		1,019,195	4		429,448	1
												2,133,587	8		2,636,275	10		2,046,528	7
										Other equity interest		(294,448)	(1)		(226,549)	(1)		(225,285)	(1)
										Total equity attributable to
										owners of parent		9,831,443	38		10,371,312	38		9,776,654	34
										Non-controlling interests		3,053,389	12		3,185,307	12		2,958,738	10
										Total equity		12,884,832	50		13,556,619	50		12,735,392	44
Total assets	$	25,737,334	100	$	27,133,014	100	$	29,254,998	100	Total liabilities and equity	$	25,737,334	100	$	27,133,014	100	$	29,254,998	100

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			ALPHA NETWORKS INC. AND SUBSIDIARIES
		Consolidated Statements of Comprehensive Income
For the three-month periods from April 1 to June 30, 2023 and 2022, and the six-month periods from January 1 to June 30, 2023 and 2022
		(Expressed in thousands of New Taiwan dollars, except for earnings per share)
		2023/4/1~2023/6/30	2022/4/1~2022/6/30		2023/1/1~2023/6/30		2022/1/1~2022/6/30
		Amount	%	Amount	%	Amount	%	Amount	%
Operating revenue	$	7,745,325	100	8,287,178	100	15,614,665	100	15,162,068	100
Operating costs		6,382,869	82	6,699,117	81	12,852,438	82	12,272,738	81
Gross profit from operations		1,362,456	18	1,588,061	19	2,762,227	18	2,889,330	19
Operating expenses :
Selling expenses		355,862	5	324,304	4	654,828	4	629,125	4
Administrative expenses		273,434	4	352,423	4	588,586	4	664,075	4
Research and development expenses		493,370	6	463,388	6	956,558	6	880,796	6
Impairment loss (impairment gain and reversal of impairment
loss) determined in accordance with IFRS 9		(40,238)	(1)	5,790	-	(31,083)	-	3,329	-
Total operating expenses		1,082,428	14	1,145,905	14	2,168,889	14	2,177,325	14
Net operating income (loss)		280,028	4	442,156	5	593,338	4	712,005	5
Non-operating income and expenses :
Other income		21,888	-	13,376	-	41,724	-	20,835	-
Other gains and losses		6,686	-	(20,024)	-	(38,723)	-	(22,079)	-
Finance costs		(40,307)	-	(23,353)	-	(71,848)	-	(36,249)	-
Interest income		23,165	-	7,154	-	40,226	-	11,284	-
Total non-operating income and expenses		11,432	-	(22,847)	-	(28,621)	-	(26,209)	-
Profit (loss) before tax		291,460	4	419,309	5	564,717	4	685,796	5
Tax expenses		13,745	-	99,269	1	100,148	1	204,705	2
Profit (loss)		277,715	4	320,040	4	464,569	3	481,091	3
Other comprehensive income:
Components of other comprehensive income that will not
be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans		-	-	-	-	-	-	545	-
Unrealised gains (losses) from investments in equity
instruments measured at fair value through other
comprehensive income		-	-	-	-	-	-	(241)	-
Components of other comprehensive income that will
not be reclassified to profit or loss		-	-	-	-	-	-	304	-
Components of other comprehensive income that will be
reclassified to profit or loss
Exchange differences on translation		(55,353)	(1)	35,635	-	(51,143)	-	280,478	2
Other comprehensive income, net		(55,353)	(1)	35,635	-	(51,143)	-	280,782	2
Total comprehensive income	$	222,362	3	355,675	4	413,426	3	761,873	5
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	$	238,917	3	243,013	3	412,816	3	376,838	2
Profit (loss), attributable to non-controlling interests		38,798	1	77,027	1	51,753	-	104,253	1

ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six-month periods from January 1 to June 30, 2023 and 2022

(Expressed in thousands of New Taiwan dollars)

	2023/1/1~2023/6/30	2022/1/1~2022/6/30
Cash flows from (used in) operating activities:
Profit before tax	$	564,717	685,796
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expenses		284,858	237,864
Amortization expenses		110,139	103,169
Expected credit (gain) loss		(31,083)	3,329
Net gain on financial assets or liabilities at fair value through profit or loss		(419)	13,294
Interest expense		71,848	36,249
Interest income		(40,226)	(11,284)
(Gain) loss on disposal of property, plant and equipment		(203)	72
Provision for inventory obsolescence and devaluation loss		127,834	59,300
Total adjustments to reconcile profit (loss)		522,748	441,993
Changes in operating assets and liabilities:
Notes and accounts receivable (including related parties)		538,176	(1,939,732)
Financial assets mandatorily at fair value through profit or loss		(9,972)	322
Inventories		1,823,788	(2,172,562)
Other current assets		17,433	(465,609)
Financial liabilities held for trading		14,349	(2,927)
Accounts payable (including related parties)		(1,832,541)	963,961
Other payable to related parties		4,908	(1,109)
Other current liabilities		(505,417)	196,857
Net defined benefit liability		(41,646)	(9,435)
Other non-current liabilities		(15,829)	-
Total changes in operating assets and liabilities		(6,751)	(3,430,234)
Total adjustments		515,997	(2,988,241)
Cash flows generated from (used in) operations		1,080,714	(2,302,445)
Interest received		39,833	12,733
Interest paid		(56,676)	(27,657)
Income taxes paid		(238,487)	(167,718)
Net cash flows used in operating activities		825,384	(2,485,087)
Cash flows from (used in) investing activities
Proceeds from disposal of financial assets at fair value through profit or loss		56,146	-
Acquisition of financial assets at amortised cost		(240,000)	(399,940)
Proceeds from repayments of financial assets at amortised cost		220,000	744,967
Acquisition of property, plant and equipment		(413,881)	(287,430)
Proceeds from disposal of property, plant and equipment		4,939	3,188
Decrease (increase) in refundable deposits		4,542	(968)
Acquisition of intangible assets		(47,165)	(118,430)
Increase in other non-current assets		(40,844)	(212,419)
Net cash flows from (used in) investing activities		(456,263)	(271,032)
Cash flows from (used in) financing activities:
Increase in short-term loans		7,992,153	17,345,146
Decrease in short-term loans		(8,103,212)	(14,739,096)
Proceeds from issuing bonds		631,884	-
Proceeds from long-term borrowings		-	26,000
Repayments of long-term borrowings		(26,000)	-
Increase in guarantee deposits received		312	980
Payments of lease liabilities		(22,597)	(16,094)
Due to donation assets received		16	13
Cash dividends paid distributed to non-controlling		-	(60,659)
Net cash flows from (used in) financing activities		472,556	2,556,290
Effect of exchange rate changes on cash and cash equivalents		22,246	175,789
Net decrease in cash and cash equivalents		863,923	(24,040)
Cash and cash equivalents at beginning of period		4,084,284	4,498,050
Cash and cash equivalents at end of period	$	4,948,207	4,474,010