Via Technologies, Inc. and Subsidiaries Consolidated Financial Statements for the Three Months Ended March 31, 2018 and 2017
CONSOLIDATED BALANCE SHEETS March 31, 2018 (Reviewed) December 31, 2017 (Audited) March 31, 2017 (Reviewed) ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents $ 1,673,909 21 $ 1,827,187 23 $ 1,613,651 17 Financial assets at fair value through profit or loss - current 334,885 4 307,594 4 152,089 2 Available-for-sale financial assets - current - - 1,866-2,104 - Financial assets at amortized cost - current 89,067 1 - - - - Debt investments with no active market - current - - 97,086 1 270,742 3 Accounts receivable, net 263,921 3 233,106 3 248,339 3 Accounts receivable - related parties 9,245-7,147-49,821 - Other receivables 67,833 1 89,196 1 96,723 1 Inventories 612,932 7 587,288 7 428,089 5 Other current assets 149,741 2 133,614 2 241,372 3 Total current assets 3,201,533 39 3,284,084 41 3,102,930 34 NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current 29,549 - - - 170,500 2 Financial assets at fair value through other comprehensive income - non-current 93,780 1 - - - - Financial assets measured at cost - non-current - - 97,477 1 108,916 1 Investments accounted for using equity method 499,706 6 306,366 4 1,500,898 16 Property, plant and equipment 2,189,031 27 2,182,438 27 2,209,476 24 Investment properties, net 1,913,717 24 1,886,782 24 1,817,210 20 Intangible assets 88,691 1 101,102 1 101,856 1 Deferred tax assets 10,220-8,687-5,349 - Refundable deposits 33,313 1 33,304 1 32,498 - Defined benefit assets - - - - 45,932 1 Long-term prepayments for lease 87,246 1 86,383 1 84,939 1 Other non-current assets 577-577 - 577 - Total non-current assets 4,945,830 61 4,703,116 59 6,078,151 66 TOTAL $ 8,147,363 100 $ 7,987,200 100 $ 9,181,081 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Financial liabilities at fair value through profit or loss - current $ 178 - $ 1,119 - $ 4,326 - Notes payable 3,579-3,418-3,204 - Accounts payable 345,409 4 298,399 4 338,405 4 Accounts payable - related parties 6,489-35,394-3,034 - Other payables 691,495 9 947,545 12 790,155 9 Current tax liabilities 5,112-3,078-34,359 - Provisions - current 5,669-4,947-21,581 - Current portion of long-term borrowings - - - - 706,000 8 Temporary receipts 1,873-4,954-19,454 - Finance lease payables - current 4,880 - - - - - Other current liabilities 174,205 2 222,630 3 324,867 3 Total current liabilities 1,238,889 15 1,521,484 19 2,245,385 24 NON-CURRENT LIABILITIES Long-term borrowings 1,074,000 13 1,002,000 12 1,486,000 16 Long-term bills payable 1,054,944 13 769,943 10 363,669 4 Deferred tax liabilities 198,865 2 193,138 2 180,904 2 Finance lease payables - non-current 9,774 - - - - - Long-term borrowings - related parties 298,024 4 293,233 4 283,025 3 Defined benefit liabilities 228,673 3 228,052 3 184,496 2 Credit balance of investments accounted for using equity method 167,099 2 172,476 2 799,517 9 Other non-current liabilities 6,958-6,038-3,129 - Total non-current liabilities 3,038,337 37 2,664,880 33 3,300,740 36 Total liabilities 4,277,226 52 4,186,364 52 5,546,125 60 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share capital 4,933,034 61 4,933,034 62 4,933,034 54 Capital surplus 4,959-3,459 - - - Accumulated deficits (1,155,159) (14) (1,207,275) (15) (1,198,944) (13) Other equity (232,162) (3) (243,352) (3) (291,764) (3) Total equity attributable to owners of the Company 3,550,672 44 3,485,866 44 3,442,326 38 NON-CONTROLLING INTERESTS 319,465 4 314,970 4 192,630 2 Total equity 3,870,137 48 3,800,836 48 3,634,956 40 TOTAL $ 8,147,363 100 $ 7,987,200 100 $ 9,181,081 100
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three Months Ended March 31 Amount % Amount % OPERATING REVENUE $ 1,030,442 100 $ 1,064,889 100 OPERATING COSTS 769,858 75 776,172 73 GROSS PROFIT 260,584 25 288,717 27 OPERATING EXPENSES Selling and marketing expenses 184,414 18 203,587 19 General and administrative expenses 120,711 12 103,067 10 Research and development expenses 351,693 34 345,620 32 Total operating expenses 656,818 64 652,274 61 LOSS FROM OPERATIONS (396,234) (39) (363,557) (34) NON-OPERATING INCOME AND EXPENSES Other income 47,685 5 108,678 10 Other gains and losses 19,651 2 74,130 7 Finance costs (9,345) (1) (11,450) (1) Share of profit of associates 372,448 36 209,915 20 Total non-operating income and expenses 430,439 42 381,273 36 PROFIT BEFORE INCOME TAX 34,205 3 17,716 2 INCOME TAX EXPENSE (2,006) - (3,883) (1) NET PROFIT FOR THE PERIOD 32,199 3 13,833 1 OTHER COMPREHENSIVE INCOME AND LOSS Items that will not be reclassified subsequently to profit or loss Unrealized gains on investments in equity instruments designated as at fair value through other comprehensive income 788 - - - Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations 11,264 1 (180,751) (17) Share of the other comprehensive income (loss) of associates 1,946 - (57,439) (5) (Continued)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three Months Ended March 31 Amount % Amount % Unrealized gains on available-for-sale financial assets $ - - $ 231 - Other comprehensive income (loss) for the period, net of income tax 13,998 1 (237,959) (22) TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD $ 46,197 4 $ (224,126) (21) NET PROFIT ATTRIBUTABLE TO: Owners of the Company $ 27,763 3 $ 17,950 2 Non-controlling interests 4,436 - (4,117) (1) $ 32,199 3 $ 13,833 1 TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: Owners of the Company $ 41,702 4 $ (220,009) (21) Non-controlling interests 4,495 - (4,117) - $ 46,197 4 $ (224,126) (21) EARNINGS PER SHARE From continuing operations Basic $ 0.06 $ 0.04 (Concluded)
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Share Capital Capital Surplus Equity Attributable to Owners of the Company Other Equity Accumulated Deficits Exchange Differences on Translating Foreign Operations Unrealized Gain or Loss on Available-forsale Financial Assets Unrealized Gain or Loss on Investments in Equity Instruments Designated as at Fair Value Through Other Comprehensive Income Total Equity Attributable to Owners of the Company Non-controlling Interests Total Equity BALANCE, JANUARY 1, 2017 $ 4,933,034 $ - $ (1,216,894) $ (49,913) $ (3,892) $ - $ 3,662,335 $ 196,747 $ 3,859,082 Net profit (loss) for the three months ended March 31, 2017 - - 17,950 - - - 17,950 (4,117) 13,833 Other comprehensive income and loss for the three months ended March 31, 2017 - - - (238,190) 231 - (237,959) - (237,959) Total comprehensive income and loss for the three months ended March 31, 2017 - - 17,950 (238,190) 231 - (220,009) (4,117) (224,126) BALANCE, MARCH 31, 2017 $ 4,933,034 $ - $ (1,198,944) $ (288,103) $ (3,661) $ - $ 3,442,326 $ 192,630 $ 3,634,956 BALANCE, JANUARY 1, 2018 $ 4,933,034 $ 3,459 $ (1,207,275) $ (239,453) $ (3,899) $ - $ 3,485,866 $ 314,970 $ 3,800,836 Effect of retrospective application - - 24,353-3,899 (6,648) 21,604-21,604 BALANCE, JANUARY 1, 2018 AS RESTATED 4,933,034 3,459 (1,182,922) (239,453) - (6,648) 3,507,470 314,970 3,822,440 Net profit for the three months ended March 31, 2018 - - 27,763 - - - 27,763 4,436 32,199 Other comprehensive income and loss for the three months ended March 31, 2018 - - - 13,151-788 13,939 59 13,998 Total comprehensive income and loss for the three months ended March 31, 2018 - - 27,763 13,151-788 41,702 4,495 46,197 Change in capital surplus from investments in associates - 1,500 - - - - 1,500-1,500 BALANCE, MARCH 31, 2018 $ 4,933,034 $ 4,959 $ (1,155,159) $ (226,302) $ - $ (5,860) $ 3,550,672 $ 319,465 $ 3,870,137
CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31 CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax $ 34,205 $ 17,716 Adjustments for: Depreciation 40,935 44,418 Amortization 19,034 19,938 Amortization of prepayments for lease 546 536 Finance costs 9,345 11,450 Interest income (4,341) (2,822) Loss on disposal of property, plant and equipment 3,866 7,914 Gain on disposal of intangible assets (6,594) (13,829) Gain on disposal of financial assets measured at cost - (95,088) Share of profit of associates (372,448) (209,915) Gain on changes in fair value of investment properties - (270) Changes in operating assets and liabilities Financial assets at fair value through profit or loss (28,885) 6,540 Accounts receivable (30,815) 49,841 Accounts receivable - related parties (2,098) (33,409) Other receivables 21,503 (27,838) Inventories (25,644) (7,308) Other current assets (16,371) (24,746) Financial liabilities at fair value through profit or loss (941) 4,326 Notes payable 161 1,086 Accounts payable 47,010 (92,056) Accounts payable - related parties (28,905) 657 Other payables (254,191) (349,096) Temporary receipts (3,081) (1,907) Provisions 722 (103) Defined benefit liabilities 621 409 Other current liabilities (48,425) 14,100 Cash used in operations (644,791) (679,456) Interest received 4,201 2,871 Interest paid (10,347) (14,175) Income tax received 1,783 41,931 Net cash used in operating activities (649,154) (648,829) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost (14,552) - Proceeds from sale of financial assets at amortized cost 22,571 - Purchase of debt investments with no active market - (106,155) Proceeds from sale of debt investments with no active market - 125,527 Payments for property, plant and equipment (29,214) (50,347) Proceeds from disposal of property, plant and equipment 163 555 (Continued)
CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31 Increase in refundable deposits $ (9) $ (128) Decrease in refundable deposits - 418 Payments for intangible assets (8,420) (14,269) Proceeds from disposal of intangible assets - 4,046 Proceeds from sale of financial assets measured at cost - 160,765 Dividend received from the associate 183,771 - Net cash provided by investing activities 154,310 120,412 CASH FLOWS FROM FINANCING ACTIVITIES Increase in long-term bills payable 286,000 - Decrease in long-term bills payable - (15,000) Proceeds from long-term borrowings 72,000 300,000 Repayments of long-term borrowings - (329,000) Increase in guarantee deposits 920 - Decrease in guarantee deposits - (1,255) Net cash provided by (used in) financing activities 358,920 (45,255) EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES (17,354) (71,510) NET DECREASE IN CASH AND CASH EQUIVALENTS (153,278) (645,182) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,827,187 2,258,833 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,673,909 $ 1,613,651 (Concluded)