Balance Sheet Assets Current Financial Statement Balance Sheet Accounting Title 218/6/3 217/12/31 217/6/3 and cash equivalents 3,811,88 9,594,356 34,713,49 Current at fair value through profit or loss 822,513 675,891 563,3 Current at amortised cost 31,938,17 Current investments in debt instrument without active market 24,37,143 21,43 Accounts receivable, net 5,63,834 3,87,958 3,67,78 Accounts receivable due from related parties, net 1,415,817 1,94,853 1,14,276 Other receivables 327,232 435,19 268,418 Current inventories 6,5,188 5,468,167 5,842,551 Prepayments 28,495 269,99 164,58 Other current 96,154 65,881 tal current 5,177,337 45,92,54 45,72,455 N-current N-current at fair value through other 1,795,549 N-current available-for-sale 717,745 682,91 N-current held-to-maturity 264,377 N-current at cost 811,496 68,364 Investments accounted for using method 264,422 281,2 311,711 Property, plant and equipment 3,223,522 3,162,949 3,196,54 Investment property, net 58,479 6,254 61,9 Intangible 1,93,178 2,78,355 2,214,72 Deferred tax 98,147 65,551 11,533 Other n-current 48,221 41,21 43,227 tal n-current 7,418,518 7,218,373 7,492,734 tal 57,595,855 52,31,913 53,213,189 Liabilities and Liabilities Equity Current liabilities Current borrowings 15,68, 18,52,624 17,898,16 Current ctract liabilities 79,871 Notes payable 5,971 8,631 5,911 Accounts payable 6,514,976 4,577,341 5,368,467 Accounts payable to related parties 256,178 291,755 283,88 Other payables 8,893,672 6,94,786 8,29,9 Other payables to related parties 46,954 39,924 29,15 Current tax liabilities 456,92 342,557 346,243 Other current liabilities 3,18,578 113,43 69,923 tal current liabilities 34,431,12 29,52,661 32,3,599 N-current liabilities N-current provisis 982,121 91,43 858,316 Deferred tax liabilities 39,375 21,749 18,347 Other n-current liabilities 7,21 7,961 9,35 tal n-current liabilities 1,28,76 931,14 886,13 tal liabilities 35,459,826 3,451,81 32,916,612 Equity attributable to owners of parent Share capital
Ordinary 5,8,955 5,65,62 5,49,513 tal capital stock 5,8,955 5,65,62 5,49,513 Capital surplus Capital surplus, additial paid-in capital 3,196,25 3,54,653 3,395,267 Capital surplus, changes in of associates and joint ventures accounted for using method 25,971 18,23 18,23 tal capital surplus 3,222,221 3,558,856 3,413,47 Retained Legal 4,467,99 4,127,884 4,127,884 Special 6,443 Unappropriated (accumulated deficit) 8,417,52 9,698,159 7,746,525 tal 13,485,44 13,826,43 11,874,49 Other interest Exchange differences translati of foreign statements -82,2-813,163-212,926 Unrealised gains (losses) from measured at fair value through other 42,231 Unrealized gains (losses) available-for-sale 212,72 162,52 tal other interest 338,211-6,443-5,46 tal attributable to owners of parent 22,126,431 21,849,518 2,286,986 N-ctrolling interests 9,598 9,594 9,591 tal 22,136,29 21,859,112 2,296,577 tal liabilities and 57,595,855 52,31,913 53,213,189 Number of capital awaiting retirement Equivalent issue s of advance receipts for ordinary Number of s in entity held by entity and by its subsidiaries Statement of Operating revenue Financial Statement Income Statement Accounting Title 218/2nd 217/2nd 218/1/1 218/6/3 217/1/1 217/6/3 tal operating revenue 11,151,893 9,951,521 21,778,259 19,934,959 Operating costs tal operating costs 6,192,395 5,63,942 12,366,181 11,363,655 Gross profit (loss) from operatis 4,959,498 4,32,579 9,412,78 8,571,34 Gross profit (loss) from operatis 4,959,498 4,32,579 9,412,78 8,571,34 Operating expenses Selling expenses 586,98 549,72 1,162,194 1,4,175 Administrative expenses 36,54 29,713 61,16 52,758 Research and development expenses 3,112,83 2,732,289 6,81,317 5,374,666 Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 6,188 6,799-6,13 2,39 tal operating expenses 4,11,62 3,579,53 7,838,424 6,91,98 Net other (expenses) Net other (expenses) 1,613 1,524 3,27 3,82 Net operating (loss) 949,491 742,6 1,576,861 1,672,478 N-operating and expenses Other tal other 248,228 2,493 442,857 376,997 Other gains and losses Other gains and losses, net -82,658 97,452 35,999-397,475 Finance costs Interest expense 28,451 43,621 67,273 82,65
Finance costs, net 28,451 43,621 67,273 82,65 Share of profit (loss) of associates and joint ventures accounted for using method Share of profit (loss) of associates and joint ventures accounted for using method, net -17,189-6,579-23,363-22,99 tal n-operating and expenses 119,93 247,745 388,22-126,118 Profit (loss) from ctinuing operatis before tax 1,69,421 99,345 1,965,81 1,546,36 Tax expense () tal tax expense () 67,788 56,799 122,788 15,837 Profit (loss) from ctinuing operatis 1,1,633 933,546 1,842,293 1,44,523 Profit (loss) 1,1,633 933,546 1,842,293 1,44,523 Other Compents of other that will not be reclassified to profit or loss Unrealised gains (losses) from investments in instruments measured at fair value through other Share of other of associates and joint ventures accounted for using method, compents of other that will not be reclassified to profit or loss Compents of other that will not be reclassified to profit or loss Compents of other that will be reclassified to profit or loss 27,446-14,668-137 -936 27,39-15,64 Exchange differences translati 1,461,15 135,411 731,143-1,511,65 Unrealised gains (losses) valuati of available-for-sale 38,265 62,64 Share of other of associates and joint ventures accounted for using method, compents of other that will be reclassified to profit or loss 279-2,954 Compents of other that will be reclassified to profit or loss 1,461,15 173,955 731,143-1,451,955 tal other 1,488,414 173,955 715,539-1,451,955 tal 2,49,47 1,17,51 2,557,832-11,432 Profit (loss), attributable to: Profit (loss), attributable to owners of parent 1,1,629 933,542 1,842,289 1,44,519 Profit (loss), attributable to n-ctrolling interests 4 4 4 4 Comprehensive attributable to: Comprehensive, attributable to owners of parent 2,49,43 1,17,497 2,557,828-11,436 Comprehensive, attributable to n-ctrolling interests 4 4 4 4 Basic per Basic (loss) per from ctinuing operatis 1.97 1.85 3.63 2.85 tal basic per 1.97 1.85 3.63 2.85 Diluted per Diluted (loss) per from ctinuing operatis 1.96 1.84 3.57 2.81 tal diluted per 1.96 1.84 3.57 2.81 Statement of cash flows Financial Statement Statements of Flows Accounting Title flows from (used in) operating activities, indirect method 218/1/1 218/6/3 217/1/1 217/6/3 Profit (loss) from ctinuing operatis before tax 1,965,81 1,546,36 Profit (loss) before tax 1,965,81 1,546,36 Adjustments Adjustments to reccile profit (loss) Depreciati expense 267,227 243,425 Amortizati expense 53,844 544,212 Expected credit loss (gain) / Provisi (reversal of provisi) for bad debt expense -6,13 2,39 Net loss (gain) or liabilities at fair value through profit or loss -2,284-8,43
Interest expense 67,273 82,65 Interest -414,629-355,661 Share of loss (profit) of associates and joint ventures accounted for using method 23,363 22,99 Loss (gain) disposal of property, plan and equipment -83-12,717 Other adjustments to reccile profit (loss) 2,169 tal adjustments to reccile profit (loss) 449,777 518,85 Changes in operating and liabilities Changes in operating Decrease (increase) in at fair value through profit or loss, mandatorily measured at fair value -26,429-49,34 Decrease (increase) in accounts receivable 7,361-1,935 Decrease (increase) in accounts receivable due from related parties -137,35-378,578 Decrease (increase) in other receivable 16,64-49,379 Adjustments for decrease (increase) in inventories -537,654-1,367,345 Decrease (increase) in prepayments 61,414-65,783 tal changes in operating -553,9-1,921,36 Changes in operating liabilities Increase (decrease) in ctract liabilities -23,794 Increase (decrease) in notes payable -2,66 1,142 Increase (decrease) in accounts payable 1,937,635 792,523 Increase (decrease) in accounts payable to related parties -35,577 14,56 Increase (decrease) in other payable 281,454 65,597 Increase (decrease) in other payable to related parties 7,3-18,396 Increase (decrease) in provisis 8,691 12,91 Increase (decrease) in receipts in advance -12,782 Adjustments for increase (decrease) in other current liabilities 335,347-1,156 Increase (decrease) in net defined benefit liability -1,253-2,43 tal changes in operating liabilities 2,578,873 852,31 tal changes in operating and liabilities 2,25,864-1,69,59 tal adjustments 2,475,641-55,254 inflow (outflow) generated from operatis 4,44,722 996,16 Interest received 55,92 546,731 Interest paid -66,733-81,246 Income taxes refund (paid) -19,748-125,875 Net cash flows from (used in) operating activities 4,86,143 1,335,716 flows from (used in) investing activities Acquisiti of at fair value through other -28, Acquisiti of at amortised cost -7,567,863 Acquisiti of investments accounted for using method -6,699 Acquisiti of property, plant and equipment -326,945-245,223 Proceeds from disposal of property, plant and equipment 133 14,44 Increase in refundable deposits -7,851-274 Acquisiti of intangible -483,461-852,463 Increase in other n-current 651 715,495 Net cash flows from (used in) investing activities -8,413,336-374,724 flows from (used in) financing activities Increase in short-term loans -2,984,624-2,656,764 Increase in guarantee deposits received 52 Decrease in guarantee deposits received -846 Net cash flows from (used in) financing activities -2,984,122-2,657,61 Effect of exchange rate changes cash and cash equivalents 754,47-1,464,137 Net increase (decrease) in cash and cash equivalents -5,783,268-3,16,755 and cash equivalents at beginning of period 9,594,356 37,874,245 and cash equivalents at end of period 3,811,88 34,713,49 and cash equivalents reported in the statement of positi 3,811,88 34,713,49
Financial Statement Statements of Changes in Stockholders' Equity Equity at beginning of period Effects of retrospective applicati and retrospective restatement Equity at beginning of period after adjustments Legal appropriated Special appropriated dividends of ordinary Changes in of associates and joint ventures accounted for using method dividends from capital surplus Ordinary tal capital Capital surplus Legal Special 218/6/3 Statement of Stockholders' Equity Unappropriated (accumulated deficit) tal Exchange differences translati of foreign statements Unrealised gains (losses) measured at fair value through other Unrealized gains (losses) availablefor-sale tal other interest t equ attribu to own of par 5,65,62 5,65,62 3,558,856 4,127,884 9,698,159 13,826,43-813,163 212,72-6,443 21,849 13,142 13,142 435,835-212,72 223,115 326 5,65,62 5,65,62 3,558,856 4,127,884 9,81,31 13,929,185-813,163 435,835-377,328 22,175 339,215-339,215 6,443-6,443-2,286,43-2,286,43-2,286 7,768 7-58,95-58 Profit (loss) 1,842,289 1,842,289 1,842 Other tal Share-based payments Increase (decrease) in Equity at end of period 731,143-15,64 715,539 715 1,842,289 1,842,289 731,143-15,64 715,539 2,557 15,893 15,893 163,692 179 15,893 15,893-336,635 339,215 6,443-1,383,799-444,141 731,143-15,64 715,539-49 5,8,955 5,8,955 3,222,221 4,467,99 6,443 8,417,52 13,485,44-82,2 42,231 338,211 22,126 Equity at beginning of Ordinary tal capital Capital surplus Legal Special 217/6/3 Statement of Stockholders' Equity Unappropriated (accumulated deficit) tal Exchange differences translati of foreign statements Unrealised gains (losses) measured at fair value through other Unrealized gains (losses) availablefor-sale tal other interest equ attribu to ow of pa 5,49,513 5,49,513 3,91,428 3,823,896 8,629,799 12,453,695 1,298,139 13,41 1,41,549 22,81
period Legal appropriated dividends of ordinary Changes in of associates and joint ventures accounted for using method dividends from capital surplus 33,988-33,988-2,19,85-2,19,85-2,1 7,993-54,951-5 Profit (loss) 1,44,519 1,44,519 1,44 Other tal Increase (decrease) in Equity at end of period -1,511,65 59,11-1,451,955-1,45 1,44,519 1,44,519-1,511,65 59,11-1,451,955-1 -496,958 33,988-883,274-579,286-1,511,65 59,11-1,451,955-2,52 5,49,513 5,49,513 3,413,47 4,127,884 7,746,525 11,874,49-212,926 162,52-5,46 2,28 Report of Independent Auditors Name of CPA Firm Name of CPA 1 Name of CPA 2 Financial Statement Independent Auditors' Report PricewaterhouseCoopers' Hsueh, Seou-Hung Li, Tien-Yi Date of Audit (Review) 218-7-27 Type of Report Review Report Type of Opini Qualified Opini or Cclusi Situatis for not Issuing a Standard Unqualified Opini or Cclusi Financial statements of n-major subsidiary or investment accounted for using method have not been audited or reviewed Descripti of Matter Emphasized Descripti of Other Matter Ctent of Independent Auditors Report Y Y Y the Board of Directors and Shareholders of Realtek Semicductor Corporati Introducti We have reviewed the accompanying csolidated balance sheets of Realtek Semicductor Corporati and subsidiaries (the??group??) as at June 3, 218 and 217, and the related csolidated statements of for the threemth and six-mth periods then ended, as well as the csolidated statements of changes in and of cash flows for the six-mth periods then ended, and notes to the csolidated statements, including a summary of significant accounting policies. Management is respsible for the preparati and fair presentati of these csolidated statements in accordance with??regulatis Governing the Preparati of Financial Reports by Securities Issuers?? and Internatial Accounting Standard 34,??Interim Financial Reporting?? as endorsed by the Financial Supervisory Commissi. Our respsibility is to express a cclusi these csolidated statements based our reviews. Scope of Review Except as explained in the following paragraph, we cducted our reviews in accordance with the Statement of Auditing Standards No. 65??Review of Financial Informati Performed by the Independent Auditor of the Entity?? in the Republic of China. A review of csolidated statements csists of making inquiries, primarily of perss respsible for and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit
Ending balance of of subsidiaries whose statements were audited or reviewed by other independent accountants tal year-to-date revenues of subsidiaries whose statements were audited or reviewed by other independent accountants tal revenues for the quarter of subsidiaries whose statements were audited or reviewed by other independent accountants Ending balance of investments accounted for using method whose statements were audited or reviewed by other independent accountants Share of year-to-date profit (loss) of associates and joint ventures accounted for using method which audited by other independent accountants Share of profit (loss) for the quarter of associates and joint ventures accounted for using method whose statements were audited or reviewed by other independent accountants Ending balance of of subsidiaries whose statements were unaudited or unreviewed Year-to-date of subsidiaries whose statements were unaudited or unreviewed Comprehensive for the quarter of subsidiaries whose statements were unaudited or unreviewed Ending balance of investments accounted for using method whose statements were unaudited or unreviewed Share of year-to-date profit (loss) of associates and joint ventures accounted for using method whose statements were unaudited or unreviewed Share of profit (loss) for the quarter of associates and joint ventures accounted for using method whose statements were unaudited or unreviewed and csequently 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 opini. Basis for Qualified Cclusi As explained in Note 4(3) and 6(7), the statements of certain insignificant csolidated subsidiaries were not reviewed by independent accountants. Those statements reflect total of NT$3,429,469 thousand and NT$2,995,611 thousand, cstituting 5.95% and 5.63% of the csolidated total, and total liabilities of NT$277,94 thousand and NT$679,158 thousand, cstituting.78% and 2.6% of the csolidated total liabilities as at June 3, 218 and 217, and total loss of NT$91,722 thousand, NT$59,82 thousand, NT$86,814 thousand, and NT$69,36 thousand, cstituting (3.68)%?B(5.4)%?B(3.39)% and 66.72% of the csolidated total for the three-mth and sixmth periods then ended, respectively. Furthermore, the investments accounted for under the method as of June 3, 218 and 217 amounted to NT$264,422 thousand and NT$311,711 thousand, respectively. Qualified Cclusi Except for the adjustments to the csolidated statements, if any, as might have been determined to be necessary had the statements of certain csolidated subsidiaries been reviewed by independent accountants, that we might have become aware of had it not been for the situati described above, based our reviews, nothing has come to our attenti that causes us to believe that the accompanying csolidated statements do not present fairly, in all material respects, the csolidated positi of the Group as at June 3, 218 and 217, and of its csolidated performance for the three-mth and six-mth periods then ended and its csolidated cash flows for the six-mth periods then ended in accordance with??regulatis Governing the Preparati of Financial Reports by Securities Issuers?? and Internatial Accounting Standard 34,??Interim Financial Reporting?? as endorsed by the Financial Supervisory Commissi. 3429469-86814 264422