Delta Electronics : 12/23/2021Q3 2021 Consolidated Financial Report

DELTA ELECTRONICS, INC. AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT

SEPTEMBER 30, 2021 AND 2020

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Board of Directors and Shareholders of Delta Electronics, Inc.

Introduction

We have reviewed the accompanying consolidated balance sheets of Delta Electronics, Inc. and its subsidiaries (the “Group”) as at September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the related consolidated statements of changes in equity and of 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 (IAS) No. 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission (FSC). Our responsibility is to express a conclusion on these interim financial statements based on our reviews and the review reports of other independent auditors.

Scope of review

Except as explained in the Basis for Qualified Conclusion, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Statements”. A review of interim financial information 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 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 explained in Notes 4(3)B and 6(8), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under the equity method were not reviewed by independent auditors. Those statements reflect total assets of NT$20,886,736 thousand and NT$19,509,339 thousand, constituting 5.87% and 5.94% of the consolidated total assets, and total liabilities of NT$6,429,106 thousand and NT$5,733,834 thousand, constituting 3.66% and 3.69% of the consolidated total liabilities as at September 30, 2021 and 2020, respectively, and total comprehensive income of NT$148,367 thousand and NT$695,237 thousand, constituting 3.04% and 9.12% of the consolidated total comprehensive income for the three months then ended, respectively,

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and total comprehensive income (loss) of (NT$168,985) thousand and NT$489,987 thousand, constituting (0.97%) and 3.88% of the consolidated total comprehensive income (loss) for the nine months then ended, respectively.

Qualified Conclusion

Based on our reviews and the review reports of other independent auditors as described in the Other Matter-Review Reports By Other Independent Auditors section of our report, except for the possible effects of the matter described in the Basis for Qualified Conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying interim financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at September 30, 2021 and 2020, and of its consolidated financial performance for the three months and nine months then ended and its consolidated cash flows for the nine months then ended in accordance with the “Rules Governing the Preparation of Financial Reports by Securities Issuers” and IAS No. 34, “Interim Financial Reporting” as endorsed by the FSC.

Other Matter–Review Reports By Other Independent Auditors

We did not review the financial statements of certain subsidiaries which were reviewed by other independent auditors. Total assets of the subsidiaries amounted to NT$53,391,053 thousand and NT$53,787,725 thousand, constituting 15.01% and 16.39% of the consolidated total assets as at September 30, 2021 and 2020, respectively, and total operating revenues amounted to NT$20,257,407 thousand and NT$15,377,308 thousand, constituting 25.43% and 19.80% of the consolidated total operating revenues for the three months then ended, respectively, and total operating revenues amounted to NT$52,051,944 thousand and NT$39,914,735 thousand, constituting 22.54% and 19.56% of the consolidated total operating revenues for the nine months then ended, respectively.

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The consolidated financial statements of Delta Electronics, Inc. and subsidiaries as at and for the nine months ended September 30, 2021 expressed in US dollars are presented solely for the convenience of the reader and were translated from the financial statements expressed in New Taiwan dollars using the exchange rate of $27.85 to US$1.00 at September 30, 2021. This basis of translation is not in accordance with International Financial Reporting Standards, International Accounting Standards, and relevant interpretations and interpretative bulletins that are ratified by the FSC.

Lin, Yu-Kuan

Chou, Chien-Hung

for and on behalf of PricewaterhouseCoopers, Taiwan

October 28, 2021

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The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the review of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and review report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

(EXPRESSED IN THOUSANDS OF DOLLARS)

(THE BALANCE SHEETS AS OF SEPTEMBER 30, 2021 AND 2020 ARE UNAUDITED)

					US Dollars					New Taiwan Dollars
Assets		Notes	September 30, 2021		September 30, 2021		December 31, 2020		September 30, 2020
Current assets
Cash and cash equivalents	6(1)		$	1,953,080	$	54,393,270	$	58,711,985	$	51,756,792
Financial assets at fair value through	6(2)
profit or loss – current					37,101			1,033,252			1,061,343		896,377
Contract assets – current	6(20)			116,307			3,239,155			2,170,634		2,309,122
Notes receivable, net	6(5)			125,203			3,486,909			3,733,595		3,609,871
Accounts receivable, net	6(5)			2,205,969			61,436,227			59,177,433		59,221,494
Accounts receivable – related parties	7			350			9,753			42,284		64,331
Other receivables	7			75,690			2,107,973			1,803,498		1,547,799
Current income tax assets					17,240			480,142			364,666		399,681
Inventories	6(7)			2,223,880			61,935,059			44,889,429		43,534,414
Prepayments					86,810			2,417,670			2,171,217		2,298,742
Other current assets	8			11,961			333,093			760,771		1,468,682
Total current assets					6,853,591			190,872,503			174,886,855		167,107,305
Non-current assets

Financial assets at fair value through	6(2)
profit or loss – non-current					107,419			2,991,627			2,942,196		2,096,674
Financial assets at fair value through	6(3)
other comprehensive income –
non-current					54,210			1,509,748			1,927,683		1,710,171
Contract assets – non-current	6(20)			19,706			548,812			526,766		447,467
Investments accounted for under the	6(8)
equity method					2,322			64,661			785,002		810,486
Property, plant and equipment		6(9) and 8		2,707,133			75,393,641			68,441,975		66,436,832
Right-of-use assets	6(10)			104,095			2,899,034			3,020,746		2,945,001
Investment property, net					505			14,070			14,070		14,070
Intangible assets	6(11)			2,609,509			72,674,814			75,459,630		78,085,483
Deferred income tax assets					226,880			6,318,607			6,471,705		6,657,453
Other non-current assets	6(5)(12)
		and 8		83,882			2,336,140			1,939,587		1,944,381
Total non-current assets					5,915,661			164,751,154			161,529,360		161,148,018
Total assets				$	12,769,252	$	355,623,657	$	336,416,215	$	328,255,323

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Delta Electronics Inc. published this content on 23 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 December 2021 08:36:05 UTC.

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