ITEQ : 2022Q1 Consolidated Results

Stock No.: 6213

ITEQ Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Review Report

For the Three Months Ended March 31, 2022 and 2021

Address: No. 17, Daluge Rd., Xinpu Township, Hsinchu

County 305, Taiwan (R.O.C.)

Tel: [phone]

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§Table of Contents§

			Financial Report
	Items	Page	No. of Notes
I.	Cover Page	1	-
II.	Table of Contents	2	-
III.	Independent Auditors' Review Report	3~4	-
IV.	Consolidated Balance Sheets	5	-
V.	Consolidated Statements of	6~7	-
	Comprehensive Income
VI.	Consolidated Statements of Changes	8	-
	Equity
VII.	Consolidated Statements of Cash Flows	9~10	-

VIII. Note to consolidated financial statements
(I)	Company history	11	1.
(II)	The Authorization of Financial	11	2.
	Statements
(III)	Application of New and Revised	11~12	3.
	International Financial Reporting
	Standards
(IV)	Summary of Significant Accounting	12~15	4.
	Policies
(V)	Critical Accounting Judgements and	15	5.
	Key Sources of Estimation and
	Uncertainty
(VI)	Summary of Significant Accounting	13~42	6~27
	Items
(VII)	Related Party Transactions	43	28.
(VIII)	Pledged Assets	-	-
(IX)	Significant Contingent Liabilities	44	29.
	and Unrecognized Commitments
(X)	Significant assets and liabilities	44	30.
	denominated in foreign currencies
(XI)	Other Matters	44	31
(XII)	Additional Disclosures
	1. Information about significant	45, 49~54,	32
	transactions	56~57
	2. Information about investees	45, 49~54,	32
		56~57
	3. Information on investments in	45~46, 49~50,	32
	Mainland China	52~53, 55~56
	4. Information on major shareholders	46, 58	32
(XIII)	Segments Information	46~48	33

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Independent Auditors' Review Report

The Board of Directors and Shareholders ITEQ Corporation:

Introduction

We have reviewed the accompanying consolidated financial statements of ITEQ Corporation and its subsidiaries (hereinafter collectively referred to as the "Group") as of March 31, 2022 and 2021 and the consolidated statements of comprehensive income, changes in equity and cash flows for the three-month periods then ended and the 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 Regulation Governing the Presentation 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 Statement of Auditing Standards No. 65 "Review of Financial Information Performed by the Independent Auditor of the Entity." A consolidated financial statements review consists of 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 4 and 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements and investments using the equity method referred to in the first paragraph were not reviewed. As of March 31, 2022 and 2021, the combined total assets of these non-significant subsidiaries were NT$1,336,935 thousand and NT$1,550,667 thousand, respectively both representing 4% and 5% of the consolidated total assets, and the combined total liabilities of non-significant subsidiaries were NT$1,284,873 thousand and NT$1,037,517 thousand respectively both representing 9% and 7% of the consolidated total liabilities; for the three months ended March 31, 2022 and 2021, the amounts of combined comprehensive income of these subsidiaries were NT$2,255 thousand, NT$13,875 thousand respectively both representing 0.2% and 2% of the consolidated total comprehensive income. The carrying amount of the investment using the equity method as at

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March 31, 2022 was NT$49,000 thousand; and the share of profit or loss of joint ventures recognized using the equity method for the three months ended March 31, 2022 was NT$0.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of non-significant subsidiaries and investments using the equity method as described in the preceding paragraph been reviewed, based on our review, noting 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 March 31, 2022 and 2021, and of its the consolidated financial performance for the three months ended March 31, 2022 and 2021, and its consolidated cash flow for the three months then ended March 31, 2022 and 2021 in accordance with the Regulations Governing the Preparation of Financial Position by Securities Issuers and IASs 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Deloitte & Touche
CPA Chen-Hsiu, Yang	CPA Kuan-Hao, Li
The Financial Supervisory Commission	The Financial Supervisory Commission
R.O.C. Approved No.	R.O.C. Approved No.
Jing Guang Zheng Shen No.	Jing Guang Zheng Shen No. 1100372936
0980032818

May 3, 2022

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 audit 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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ITEQ Corporation and Subsidiaries

Consolidated Balance Sheets

March 31, 2022, December 31, 2021, and March 31, 2021

																								Unit: NTD thousand
						March 31, 2022						December 31, 2021				March 31, 2021
						(Reviewed)						(Audited)							(Reviewed)
Code		Asset				Amount			%					Amount			%					Amount			%
		CURRENT ASSETS
1100		Cash and cash equivalents (Note 6)	$	3,711,145				11		$	4,423,278			12	$	3,511,462			12
1110		Financial assets at fair value through profit or loss
		(Note 7)			4,743				-					4,618			-				5,921			-
1170		Notes & accounts receivable.net (Note 8)			14,377,256				40					13,260,199			37				11,114,928			38
1200		Other receivables (Note 22 and 27)			474,890				1					225,839			1				153,884			-
1220		Current tax assets			32,464				-					32,456			-				911			-
130X		Inventories - net (Note 9)			4,821,620				14					5,166,981			14				3,888,254			13
1479		Other current assets (Note 15)			1,375,060				4					1,261,998			3				1,361,126			5
11XX		Total current assets			24,797,178				70					24,375,369			67				20,036,486			68
		NON-CURRENT ASSETS
1517		Financial assets at fair value through other
		comprehensive income - non-current (Note 10)			29,169				-					29,687			-				36,818			-
1550		Investments using the equity method (Note 11)			49,000				-					-			-				-			-
1600		Property, plant and equipment (Note 12)			6,796,925				19					6,504,769			18				6,089,519			21
1755		Right-of-use assets (Notes 13 and 28)			307,118				1					310,873			1				355,253			1
1780		Intangible assets (Note 14)			8,617				-					8,360			-				8,698			-
1840		Deferred tax assets			142,090				-					293,471			1				211,979			1
1990		Other non-current assets (Notes 15 and 28)			3,483,816				10					4,714,757			13				2,611,145			9
15XX		Total non-current assets			10,816,735				30					11,861,917			33				9,313,412			32
1XXX		Total assets		$	35,613,913				100			$	36,237,286			100	$	29,349,898			100
Code		LIABILITIES AND EQUITY
		CURRENT LIABILITIES
2100		Short-term borrowings (Note 16)	$	2,494,257				7		$	2,131,144			6	$	1,649,670			6
2170		Notes and accounts payable			6,644,335				19					7,121,256			19				6,914,191			23
2216		Cash dividends payable			1,914,786				5					-			-				-			-
2219		Other payables (Note 17)			2,392,292				7					4,259,191			12				3,532,412			12
2230		Current tax liabilities			598,278				2					640,862			2				782,603			3
2250		Provisions for liabilities - current (Note 18)			20,225				-					17,023			-				27,776			-
2280		Lease liabilities - current (Notes 13 and 28)			49,135				-					49,366			-				55,099			-
2320		Current portion of long-term borrowings (Note 16)			-				-					-			-				58,824			-
2399		Other current liabilities (Note 21)			45,219				-					45,963			-				45,992			-
21XX		Total current liabilities			14,158,527				40					14,264,805			39				13,066,567			44
		NON-CURRENT LIABILITIES
2580		Lease liabilities - non-current (Note 13 and 28)			223,662				1					227,546			1				262,977			1
2540		Long-term borrowings (Note 16)			-				-					-			-				1,640,000			6
2570		Deferred tax liabilities			414,028				1					396,501			1				376,532			1
2645		Guarantee deposits			33,841				-					33,696			-				32,303			-
25XX		Total non-current liabilities			671,531				2					657,743			2				2,311,812			8
2XXX		Total liabilities			14,830,058				42					14,922,548			41				15,378,379			52
		EQUITY
		Equity attributable to the Company (Notes 20)
3100		Share capital			3,829,572				11					3,829,572			10				3,329,572			11
3200		Capital surplus			9,694,618				27					9,690,481			27				3,682,051			13
		Retained earnings
3310		Legal reserve			1,885,194				5					1,885,194			5				1,618,630			6
3320		Special reserve			444,936				1					444,936			1				583,390			2
3350		Unappropriated earnings			4,873,064				14					5,978,737			17				5,267,488			18
3300		Total retained earnings			7,203,194				20					8,308,867			23				7,469,508			26
3400		Other equities			56,471				-		(		514,182 )		(	1)	(		509,612 )		(	2)
3XXX		Total equity			20,783,855				58					21,314,738			59				13,971,519			48
		Total liabilities and equity		$	35,613,913				100			$	36,237,286			100	$	29,349,898			100

The accompanying notes are an integral part of the consolidated financial statements

(Please see the Review Report of Deloitte & Touche on May 3, 2022)

Chairman: Chin-Tsai, Chen

Manager: Hsin-Hui, Tsai

Accounting Supervisor: Jiun-Ren, Huang

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