Delta Electronics Thailand : Financial Statement Quarter 1 / 2024

Delta Electronics (Thailand) Public Company Limited and its subsidiaries

Review report and interim financial information For the three-month period ended 31 March 2024

Independent Auditor's Report on Review of Interim Financial Information

To the Shareholders of Delta Electronics (Thailand) Public Company Limited

I have reviewed the accompanying consolidated statement of financial position of Delta Electronics (Thailand) Public Company Limited and its subsidiaries as at 31 March 2024, the related consolidated statements of comprehensive income, changes in shareholders' equity, and cash flows for the three-month period then ended, as well as the condensed notes to the interim consolidated financial statements. I have also reviewed the separate financial information of Delta Electronics (Thailand) Public Company Limited for the same period (collectively "interim financial information"). Management is responsible for the preparation and presentation of this interim financial information in accordance with Thai Accounting Standard 34 Interim Financial Reporting. My responsibility is to express a conclusion on this interim financial information based on my review.

Scope of review

I conducted my review in accordance with Thai Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. 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 conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion.

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34 Interim Financial Reporting.

Chatchai Kasemsrithanawat

Certified Public Accountant (Thailand) No. 5813

EY Office Limited

Bangkok: 26 April 2024

Delta Electronics (Thailand) Public Company Limited and its subsidiaries
Statement of financial position
As at 31 March 2024
						(Unit: Thousand Baht)
		Consolidated financial statements		Separate financial statements
	Note	31 March 2024		31 December 2023		31 March 2024		31 December 2023
		(Unaudited		(Audited)		(Unaudited		(Audited)
		but reviewed)				but reviewed)
Assets
Current assets
Cash and cash equivalents		8,001,820	7,617,211	1,224,287	353,196
Trade and other receivables	3	35,068,590	33,237,289	35,527,802	34,695,748
Inventories	4	32,009,728	32,746,509	21,768,747	23,076,990
Derivative assets	17.2	5,717	562,669	4,950	562,600
Other current assets	5	1,818,117		1,402,270		434,135		523,935
Total current assets		76,903,972	75,565,948	58,959,921	59,212,469
Non-current assets
Deposits at bank with restrictions		35,527	34,413	-	-
Investments in subsidiary companies	6	-	-	19,906,616	18,748,597
Investment properties		205,579	201,167	-	-
Property, plant and equipment	7	33,098,993	29,681,379	21,329,968	19,658,089
Advances to contractors and for acquisitions
of assets		635,689	950,440	635,689	950,440
Right-of-use assets		540,224	525,492	51,299	62,111
Goodwill		451,112	443,885	-	-
Other intangible assets		153,105	147,212	48,968	51,868
Deferred tax assets		538,832	436,270	-	-
Other non-current assets		65,763		158,785		30,365		25,140
Total non-current assets		35,724,824		32,579,043		42,002,905		39,496,245
Total assets		112,628,796	108,144,991	100,962,826	98,708,714

The accompanying notes are an integral part of the interim financial statements.

Delta Electronics (Thailand) Public Company Limited and its subsidiaries
Statement of financial position (continued)
As at 31 March 2024
						(Unit: Thousand Baht)
		Consolidated financial statements		Separate financial statements
	Note	31 March 2024		31 December 2023		31 March 2024		31 December 2023
		(Unaudited		(Audited)		(Unaudited		(Audited)
		but reviewed)				but reviewed)
Liabilities and shareholders' equity
Current liabilities
Short-term loans from financial institutions	8	1,297,236	2,496,591	1,282,113	2,475,907
Trade and other payables	9	31,649,907	32,096,498	25,474,488	26,550,932
Current portion of lease liabilities		113,172	110,247	38,394	40,013
Income tax payable		692,884	563,545	481,127	376,146
Short-term provisions	12	34,353	33,455	-	-
Liabilities and provision from tax assessments	16.4.1	113,201	113,201	113,201	113,201
Derivative liabilities	17.2	490,620	604	490,620	-
Other current liabilities	10	454,893		761,403		258,489		501,557
Total current liabilities		34,846,266	36,175,544	28,138,432	30,057,756
Non-current liabilities
Long-term loans from related party	2	813,364	825,302	-	-
Lease liabilities, net of current portion		141,119	144,134	11,952	21,180
Deferred tax liabilities		291,960	233,774	-	-
Provision for long-term employee benefits	11	1,632,695	1,578,815	742,506	727,183
Long-term provisions	12	1,224,686	1,137,311	924,365	860,929
Other non-current liabilities		356,088		511,560		195,843		185,584
Total non-current liabilities		4,459,912		4,430,896		1,874,666		1,794,876
Total liabilities		39,306,178		40,606,440		30,013,098		31,852,632

The accompanying notes are an integral part of the interim financial statements.

Delta Electronics (Thailand) Public Company Limited and its subsidiaries

Statement of financial position (continued)

As at 31 March 2024

					(Unit: Thousand Baht)
	Consolidated financial statements		Separate financial statements
	31 March 2024		31 December 2023		31 March 2024		31 December 2023
	(Unaudited		(Audited)		(Unaudited		(Audited)
	but reviewed)				but reviewed)
Shareholders' equity
Share capital
Registered
12,590,000,000 ordinary shares of Baht 0.1 each	1,259,000	1,259,000	1,259,000	1,259,000
Issued and fully paid
12,473,816,140 ordinary shares of Baht 0.1 each	1,247,382	1,247,382	1,247,382	1,247,382
Share premium	1,491,912	1,491,912	1,491,912	1,491,912
Difference from business combination under
common control	(1,339,694)	(1,339,694)	-	-
Retained earnings
Appropriated - Statutory reserve	125,900	125,900	125,900	125,900
Unappropriated	72,807,118	68,499,609	68,084,534	63,990,888
Other components of shareholders' equity	(1,010,000)		(2,486,558)		-		-
Total shareholders' equity	73,322,618		67,538,551		70,949,728		66,856,082
Total liabilities and shareholders' equity	112,628,796		108,144,991		100,962,826		98,708,714
	-	-	-	-

The accompanying notes are an integral part of the interim financial statements.

Directors

(Unaudited but reviewed)

Delta Electronics (Thailand) Public Company Limited and its subsidiaries

Statement of comprehensive income

For the three-month period ended 31 March 2024

		(Unit: Thousand Baht, except basic earnings per share expressed in Baht)
		Consolidated financial statements		Separate financial statements
	Note	2024	2023	2024	2023
Profit or loss:
Revenues
Sales		37,679,158	31,988,773	30,881,302	27,588,967
Service income		309,569	305,365	86,938	17,763
Other income
Gain on exchange		229,557	155,361	217,436	140,407
Compensation for contract decommitment		277,184	11,104	277,988	5,497
Others		183,936		144,862		139,982		94,687
Total revenues		38,679,404	32,605,465	31,603,646	27,847,321
Expenses
Cost of sales		29,769,400	25,338,732	23,434,600	21,606,281
Cost of services		247,658	242,393	71,520	1,759
Selling and distribution expenses	16.2.1	2,898,848	1,670,542	2,564,220	1,372,750
Administrative expenses		705,015	554,602	355,177	312,549
Research and development expenses	16.2.2	647,861	1,011,067	974,904	1,088,988
Other expenses		5,981		63,653		1,507		13,320
Total expenses		34,274,763		28,880,989		27,401,928		24,395,647
Operating profit		4,404,641	3,724,476	4,201,718	3,451,674
Finance income		49,938	35,693	9,803	20,446
Finance cost		(34,321)		(25,149)		(14,150)		(317)
Profit before income tax expenses		4,420,258	3,735,020	4,197,371	3,471,803
Income tax expenses	13	(112,749)		(120,563)		(103,725)		(75,210)
Profit for the period		4,307,509	3,614,457	4,093,646	3,396,593

The accompanying notes are an integral part of the interim financial statements.

(Unaudited but reviewed)

Delta Electronics (Thailand) Public Company Limited and its subsidiaries

Statement of comprehensive income (continued)

For the three-month period ended 31 March 2024

		(Unit: Thousand Baht, except basic earnings per share expressed in Baht)
		Consolidated financial statements		Separate financial statements
	Note	2024	2023	2024	2023
Other comprehensive income:
Other comprehensive income to be reclassified
to profit or loss in subsequent periods:
Exchange differences on translation of
financial statements in foreign currency		1,476,558	(276,374)	-	-
Other comprehensive income to be reclassified
to profit or loss in subsequent periods		1,476,558	(276,374)	-	-
Other comprehensive income not to be reclassified
to profit or loss in subsequent periods:
Actuarial gain - net of income tax		-	30,817	-	30,817
Other comprehensive income not to be reclassified
to profit or loss in subsequent periods - net of income tax	-		30,817		-		30,817
Other comprehensive income for the period		1,476,558		(245,557)		-		30,817
Total comprehensive income for the period		5,784,067	3,368,900	4,093,646	3,427,410
Profit attributable to:
Equity holders of the Company		4,307,509	3,614,457	4,093,646	3,396,593
Total comprehensive income attributable to:
Equity holders of the Company		5,784,067	3,368,900	4,093,646	3,427,410
Earnings per share	14
Basic earnings per share
Profit attributable to equity holders of the Company		0.35	0.29	0.33	0.27

The accompanying notes are an integral part of the interim financial statements.

(Unaudited but reviewed)

Delta Electronics (Thailand) Public Company Limited and its subsidiaries

Statement of changes in shareholders' equity

For the three-month period ended 31 March 2024

															(Unit: Thousand Baht)
							Consolidated financial statements
												Other components of shareholders' equity
												Other comprehensive income
												Exchange differences
	Issued and			Difference from business						on translation of			Total other		Total
	fully paid				combination under	Retained earnings			financial statements			components of		shareholders'
	share capital		Share premium		common control		Appropriated		Unappropriated			in foreign currency			shareholders' equity		equity
Balance as at 1 January 2023	1,247,382	1,491,912	(1,339,694)		125,900	55,264,964	(2,110,702)	(2,110,702)	54,679,762
Profit for the period	-	-	-		-	3,614,457	-	-	3,614,457
Other comprehensive income for the period	-		-		-		-		30,817		(276,374)		(276,374)		(245,557)
Total comprehensive income for the period	-		-		-		-		3,645,274		(276,374)		(276,374)		3,368,900
Balance as at 31 March 2023	1,247,382		1,491,912		(1,339,694)		125,900		58,910,238		(2,387,076)		(2,387,076)		58,048,662
Balance as at 1 January 2024
1,247,382	1,491,912	(1,339,694)		125,900	68,499,609	(2,486,558)	(2,486,558)	67,538,551
Profit for the period	-	-	-		-	4,307,509	-	-	4,307,509
Other comprehensive income for the period	-		-		-		-		-		1,476,558		1,476,558		1,476,558
Total comprehensive income for the period	-		-		-		-		4,307,509		1,476,558		1,476,558		5,784,067
Balance as at 31 March 2024	1,247,382	1,491,912	(1,339,694)		125,900	72,807,118	(1,010,000)	(1,010,000)	73,322,618
																-

The accompanying notes are an integral part of the interim financial statements.

(Unaudited but reviewed)

Delta Electronics (Thailand) Public Company Limited and its subsidiaries

Statement of changes in shareholders' equity (continued)

For the three-month period ended 31 March 2024

								(Unit: Thousand Baht)
			Separate financial statements
	Issued and								Total
	fully paid				Retained earnings		shareholders'
	share capital		Share premium		Appropriated		Unappropriated		equity
Balance as at 1 January 2023	1,247,382	1,491,912	125,900	51,380,256	54,245,450
Profit for the period	-	-	-	3,396,593	3,396,593
Other comprehensive income for the period	-		-		-		30,817		30,817
Total comprehensive income for the period	-		-		-		3,427,410		3,427,410
Balance as at 31 March 2023	1,247,382		1,491,912		125,900		54,807,666		57,672,860
Balance as at 1 January 2024
1,247,382	1,491,912	125,900	63,990,888	66,856,082
Profit for the period	-	-	-	4,093,646	4,093,646
Other comprehensive income for the period	-		-		-		-		-
Total comprehensive income for the period	-		-		-		4,093,646		4,093,646
Balance as at 31 March 2024	1,247,382	1,491,912	125,900	68,084,534	70,949,728
								-

The accompanying notes are an integral part of the interim financial statements.

(Unaudited but reviewed)

Delta Electronics (Thailand) Public Company Limited and its subsidiaries

Cash flow statement

For the three-month period ended 31 March 2024

					(Unit: Thousand Baht)
	Consolidated financial statements		Separate financial statements
	2024	2023	2024	2023
Cash flows from operating activities:
Profit before tax	4,420,258	3,735,020	4,197,371	3,471,803
Adjustments to reconcile profit before tax to
net cash provided by (paid from) operating activities:
Depreciation	1,459,517	946,696	1,136,833	756,042
Amortisation	16,885	22,966	2,900	2,650
Allowance for expected credit losses (reversal)	38,410	(8,127)	(27,617)	(13,904)
Reduction of inventory to net realisable value	796,590	572,324	720,037	325,766
Reversal of the reduction to net realisable value
of the written-off obsolete and damaged inventories	(393,175)	(79,045)	(350,628)	(49,042)
Increase in provision for long-term employee benefits	42,589	26,156	21,092	15,168
Increase in provisions	196,994	139,784	139,767	44,494
(Gain) loss from disposal/writte-off of property, plant and equipment	(8,055)	2,060	1,344	2,005
Unrealised gain on exchange	(1,308,382)	(850,774)	(1,292,329)	(827,781)
Loss on fair value adjustments of derivative instruments	1,046,968	623,319	1,048,270	617,539
Finance income	(49,938)	(35,693)	(9,803)	(20,446)
Finance cost	34,321	25,149	14,150	317
Profit from operating activities before changes in
operating assets and liabilities	6,292,982	5,119,835	5,601,387	4,324,611
Decrease (increase) in operating assets:
Trade and other receivables	483,705	3,181,632	1,531,206	3,085,647
Inventories	254,769	(2,983,630)	938,834	(2,226,021)
Other current assets	(401,291)	639,619	62,001	2,950
Other non-current assets	97,035	(4,240)	(5,225)	(2,753)
Increase (decrease) in operating liabilities:
Trade and other payables	(1,036,409)	276,378	(1,669,110)	452,588
Other current liabilities	(332,699)	(238,576)	(268,779)	(159,054)
Cash paid for long-term employee benefits	(17,502)	(12,988)	(5,769)	(1,496)
Cash paid for provisions	(124,419)	(22,421)	(76,331)	(584)
Other non-current liabilities	(155,472)		5,875		10,259		431
Cash flows from operating activities	5,060,699	5,961,484	6,118,473	5,476,319
Cash received from interest income	40,178	19,289	1,471	5,943
Cash paid for interest expenses	(35,218)	(24,869)	(16,119)	(316)
Cash paid for corporate income tax	(86,714)		(76,501)		(117)		(199)
Net cash flows from operating activities	4,978,945		5,879,403		6,103,708		5,481,747

The accompanying notes are an integral part of the interim financial statements.