Weikeng Industrial : 2023 Q2 Consolidated Financial Statement

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Stock Code:3033

WEIKENG INDUSTRIAL CO., LTD. AND

SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Six Months Ended June 30, 2023 and 2022

Address:	11F., No.308, Sec.1, Neihu Rd., Neihu Dist., Taipei City
Telephone:	[phone]

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		12～40
	(7)	Related-party transactions		40～41
	(8)	Assets pledged as security	41
	(9)	Commitments and contingencies	41
	(10)	Losses due to major disasters	41
	(11)	Subsequent events	41
	(12)	Other		41～42
	(13)	Other disclosures
		(a) Information on significant transactions		42～45
		(b) Information on investees	45
		(c) Information on investment in Mainland China	46
		(d) Major shareholders	47
	(14)	Segment information	47

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Independent Auditors' Review Report

To the Board of Directors of Weikeng Industrial Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Weikeng Industrial Co., Ltd. and its subsidiaries as of June 30, 2023 and 2022, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2023 and 2022, as well as the changes in equity and cash flows for the six months ended June 30, 2023 and 2022, 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 Standard on Review Engagements 2410, " Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. 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 Standards on Auditing of the Republic of China 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 Weikeng Industrial Co., Ltd. and its subsidiaries as of June 30, 2023 and 2022, and of its consolidated financial performance for the three months and six months ended June 30, 2023 and 2022, as well as its consolidated cash flows for the six months ended June 30, 2023 and 2022 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 review resulting in this independent auditors' review report are Yiu-Kwan Au and Kuan-Ying Kuo.

KPMG

Taipei, Taiwan (Republic of China)

August 11, 2023

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.)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2023, December 31, and June 30, 2022

(Expressed in Thousands of New Taiwan Dollars)

			June 30, 2023			December 31, 2022	June 30, 2022
	Assets		Amount	%		Amount	%			Amount	%
	Current assets:
1100	Cash and cash equivalents (note (6)(a))	$	2,430,359		7		2,839,507		9			1,861,994			6
1110	Current financial assets at fair value through profit or
	loss (note (6)(b))		802		-		644		-			809			-
1170	Notes and accounts receivable, net (notes (6)(d) and
	(7))		13,287,852		40		12,844,427		39			13,517,700			44
1200	Other receivables (note (6)(d))		309,664		1		366,331		1			348,868			1
1300	Inventories, net (note (6)(e))		15,721,451		47		16,266,457		49			14,399,395			46
1470	Prepaid expenses and other current assets		925,352		3		142,755		-			203,213			1
			32,675,480		98		32,460,121		98			30,331,979			98
	Non-current assets:
1510	Non-current financial assets at fair value through
	profit or loss (note (6)(b))		-		-		-		-			25			-
1517	Non-current financial assets at fair value through
	other comprehensive income (note (6)(c))		75,015		-		81,089		-			39,921			-
1600	Property, plant and equipment (note (6)(f))		129,825		-		129,766		-			132,043			-
1755	Right-of-use assets (note (6)(g))		348,783		1		284,249		1			256,748			1
1780	Intangible assets		9,834		-		10,602		-			22,739			-
1840	Deferred tax assets		178,716		1		196,650		1			185,640			1
1900	Other non-current assets		78,907		-		78,376		-			78,066			-
			821,080		2		780,732		2			715,182			2

Total assets	$	33,496,560 100	33,240,853 100	31,047,161 100

	Liabilities and Equity
	Current liabilities:
2100	Short-term borrowings (note (6)(h))	$
2120	Current financial liabilities at fair value through
	profit or loss (note (6)(b))
2130	Current contract liabilities (note (6)(q))
2170	Accounts payable
2200	Other payables (notes (6)(i) and (7))
2216	Dividends payable
2230	Current tax liabilities
2280	Current lease liabilities (note (6)(k))
2300	Other current liabilities

Non-current liabilities:

2500 Non-current financial liabilities at fair value through profit or loss (note (6)(b))

2530 Bonds payable (note (6)(j))

2570 Deferred tax liabilities

2580 Non-current lease liabilities (note (6)(k))

2640 Non-current net defined benefit liabilities

2670 Other non-current liabilities

	Total liabilities
	Equity (note (6)(o)):
3100	Common shares
3200	Capital surplus
	Retained earnings:
3310	Legal reserve
3320	Special reserve
3350	Unappropriated earnings
	Other equity interest:
3410	Exchange differences on translation of foreign
	financial statements
3420	Unrealized gains (losses) from financial assets
	measured at fair value through other
	comprehensive income
	Total equity
	Total liabilities and equity	$

June 30, 2023			December 31, 2022		June 30, 2022
Amount		%			Amount		%			Amount			%
14,647,837			44		14,647,898		44		10,359,597			34
-			-		784		-		-			-
1,142,123			3		898,765		3		236,537			1
3,505,112			11		3,560,734		11		5,983,503			19
861,548			3		1,046,936		3		856,180			3
1,312,988			4		-		-		1,270,232			4
149,376			-		333,254		1		630,824			2
143,412			-		121,746		-		111,949			-
440,901			1			423,496			1			392,277			1
22,203,297			66			21,033,613			63			19,841,099			64
11,256			-		31,173		-		32,200			-
1,799,009			5		1,870,309		5		1,875,283			6
874,338			3		874,328		3		697,540			2
213,645			1		171,675		1		154,387			1
76,493			-		79,956		-		114,636			-
181			-			181			-			181			-
2,974,922			9			3,027,622			9			2,874,227			9
25,178,219			75			24,061,235			72			22,715,326			73
4,265,280			13			4,235,432			13			4,223,886			13
1,497,097			5			1,440,646			4			1,434,828			5
1,304,638			4		1,132,248		4		1,132,248			4
-			-		454,583		1		454,583			1
1,183,421			3			1,908,636			6			1,233,485			4
2,488,059			7			3,495,467			11			2,820,316			9
164,382			-		89,420		-		(65,873)		-
(96,477)		-		(81,347)	-		(81,322)		-
67,905			-			8,073			-			(147,195)		-
8,318,341			25			9,179,618			28			8,331,835			27
33,496,560			100		33,240,853		100		31,047,161			100

See accompanying notes to consolidated financial statements.