Chenming Electronic Tech : 2022 Consolidated Financial Statements 2022/Q3

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Stock Code:3013

CHENMING ELECTRONIC TECHNOLOGY CORP.

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors' Review Report

For the Nine Months Ended September 30, 2022 and 2021

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

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Table of contents

		Contents		Page
1.	Cover Page	1
2.	Table of Contents	2
3.	Independent Auditors' Review Report	3
4.	Consolidated Balance Sheets	4
5.	Consolidated Statement of Comprehensive Income	5
6.	Consolidated Statement of Changes in Equity	6
7.	Consolidated Statement of Cash Flows	7
8.	Notes to the Consolidated Financial Statements
	(1)	Company history	8
	(2)	Approval date and procedures of the consolidated financial statements	8
	(3)	New standards, amendments and interpretations adopted		8～10
	(4)	Summary of significant accounting policies		10～11
	(5)	Significant accounting assumptions and judgments, and major sources	11
		of estimation uncertainty
	(6)	Explanation of significant accounts		12～30
	(7)	Related-party transactions		31～32
	(8)	Pledged assets	32
	(9)	Commitments and contingencies	33
	(10)	Losses due to major disasters	33
	(11)	Subsequent events	33
	(12)	Other		33～34
	(13)	Other disclosures
		(a) Information on significant transactions		34～37
		(b) Information on investees	37
		(c) Information on investment in mainland China		37～38
		(d) Major shareholders	38
	(14)	Segment information	39

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Independent Auditors' Review Report

To the Board of Directors of CHENMING ELECTRONIC TECHNOLOGY CORP.:

Introduction

We have reviewed the accompanying consolidated balance sheets of CHENMING ELECTRONIC TECHNOLOGY CORP. (the "Company") and its subsidiaries (the "Group") as of September 30, 2022 and 2021, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the changes in equity and cash flows for the nine months then ended, and 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

We conducted our reviews in accordance with the Statement of Auditing Standard 65, "Review of Financial Information Performed by the Independent Auditor of the Entity" . A review of the 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 the generally accepted auditing standards, 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.

Conclusion

Based on our reviews, 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 Group as of September 30, 2022 and 2021, and of its consolidated financial performance for the three months and nine months then ended, as well as its consolidated cash flows for the nine months then ended 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.

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The engagement partners on the reviews resulting in this independent auditors'review report are Yi Wen Wang and Szu-Chuan Chien .

KPMG

Taipei, Taiwan (Republic of China)

November 9, 2022

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance, and cash flows in accordance with the 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 accepted and applied in the Republic of China.

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Reviewed only, not audited in accordance with generally accepted auditing standards as of September 30, 2022 and 2021

CHENMING ELECTRONIC TECHNOLOGY CORP. AND SUBSIDIARIES

Consolidated Balance Sheet

September 30, 2022, December 31, 2021, and September 30, 2021

(Expressed in Thousands of New Taiwan Dollars)

		September 30, 2022	December 31, 2021	September 30, 2021
	Assets		Amount	％	Amount	％	Amount	％
	Current assets:
1100	Cash and cash equivalents (note (6)(a))	$	382,922	5	222,648		3		254,031		5
1110	Current financial assets at fair value through profit or
	loss (note (6)(b))		1,853		-		-		-		-		-
1170	Trade receivables, net (notes (6)(c) and (6)(q))		2,145,239	30	2,199,511	31	1,675,585	30
1310	Inventories, net (note (6)(d))		1,417,713	20	1,360,682	19	1,421,011	25
1479	Other current assets		71,602		1		85,166		1		76,695		1
			4,019,329		56		3,868,007		54		3,427,322		61
	Non-current assets:
1600	Property, plant, and equipment (notes (6)(f), (7) and
	(8))		2,532,588		36		2,812,920		39		1,558,590		28
1755	Right-of-use assets (notes (6)(g) and (7))		346,806	5	224,544	3	228,918		4
1760	Investment property, net (notes (6)(h) and (8))		173,091	3	195,162		3		195,471		3
1780	Intangible assets		11,845		-		14,084		-		10,374		-
1840	Deferred income tax assets		5,902		-		5,780		-		14,005		-
1980	Other non-current financial assets (note (8))		16,509	-		20,463	-		29,153		1
1990	Other non-current assets (notes (6)(f))		8,626		-		70,942		1		152,241		3
			3,095,367		44		3,343,895		46		2,188,752		39

Total assets	$	7,114,696 100	7,211,902 100	5,616,074 100

		September 30, 2022	December 31, 2021	September 30, 2021
	Liabilities and Equity		Amount	%			Amount	%			Amount	%
	Current liabilities:
2100	Short-term loans (note (6)(i))	$	110,000	2	1,030,771	15	626,797		11
2130	Current contract liabilities (note (6)(q))		443	-		674	-		686	-
2170	Trade payables		2,163,991	31	1,965,398	27	1,631,102		29
2200	Other payables		242,232		3		257,855		4		243,573		4
2220	Other payables-related parties (notes (6)(e) and (7))		22,225	-		33,216	-		33,420		1
2230	Current tax liabilities		42,248		1		526		-		104		-
2280	Current lease liabilities (notes (6)(k) and (7))		13,345	-		6,690	-		9,220		-
2300	Other current liabilities		3,152			-			585			-			900			-
			2,597,636			37			3,295,715			46			2,545,802			45

	Non-current liabilities:
2540	Long-term loans (note (6)(j))		1,376,684	19	1,663,458	23		793,000		15
2580	Non-current lease liabilities (notes (6)(k) and (7))		123,455	2	2,936		-		3,109		-
2645	Guarantee deposits		25,990		-		8,062		-		7,815		-
			1,526,129		21		1,674,456		23		803,924		15
	Total liabilities		4,123,765		58		4,970,171		69		3,349,726		60
	Equity attributable to owners of parent (note
	(6)(o)):
3100	Ordinary shares		1,959,350		28		1,559,350		22		1,559,350		27
3200	Capital surplus		313,563	3	173,563	2	173,563		3
3300	Retained earnings		749,730	11	575,472	8	609,986	11
3410	Exchange differences on translation of foreign
	financial statements		(31,712)	-		(66,654)	(1)	(76,551)	(1)
	Total equity		2,990,931		42		2,241,731		31		2,266,348		40
	Total liabilities and equity	$	7,114,696		100		7,211,902		100		5,616,074		100

See accompanying notes to consolidated financial statements.