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Stock Code:3033
WEIKENG INDUSTRIAL CO., LTD. AND
SUBSIDIARIES
Consolidated Financial Statements
With Independent Auditors' Review Report
For the Nine Months Ended September 30, 2022 and 2021
Address: | 11F., No.308, Sec.1, Neihu Rd., Neihu Dist., Taipei City |
Telephone: | (02)2659-0202 |
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 | 12~39 | ||
(7) | Related-party transactions | 39~40 | ||
(8) | Assets pledged as security | 40 | ||
(9) | Commitments and contingencies | 40 | ||
(10) | Losses Due to Major Disasters | 40 | ||
(11) | Subsequent Events | 40 | ||
(12) | Other | 41 | ||
(13) | Other disclosures | |||
(a) Information on significant transactions | 41~44 | |||
(b) Information on investees | 44 | |||
(c) Information on investment in mainland China | 45 | |||
(d) Major shareholders | 46 | |||
(14) | Segment information | 46 |
KPMG
台北市110615信義路5段7號68樓(台北101大樓) 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)
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電 | 話 Tel | + 886 2 8101 6666 |
傳 | 真 Fax | + 886 2 8101 6667 |
網 | 址 Web | home.kpmg/tw |
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 September 30, 2022 and 2021, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2022 and 2021, as well as the changes in equity and cash flows for the nine months ended September 30, 2022 and 2021, 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 Statement of Auditing Standard 65, " Review of Financial Information Performed by the Independent Auditor of the Entity" . 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 generally accepted auditing standards 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 September 30, 2022 and 2021, and of its consolidated financial performance for the three months and nine months ended September 30, 2022 and 2021, as well as its consolidated cash flows for the nine months ended September 30, 2022 and 2021 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.
KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
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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)
November 11, 2022
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)
Reviewed only, not audited in accordance with generally accepted auditing standards as of September 30, 2022 and 2021
WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES
Consolidated Balance Sheets
September 30, 2022, December 31, and September 30, 2021
(Expressed in Thousands of New Taiwan Dollars)
September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||
Assets | Amount | % | Amount | % | Amount | % | |||||||
Current assets: | |||||||||||||
1100 | Cash and cash equivalents (note (6)(a)) | $ | 2,325,715 | 6 | 2,266,607 | 8 | 2,376,929 | 9 | |||||
1110 | Current financial assets at fair value through profit or | ||||||||||||
loss (note (6)(b)) | 656 | - | 607 | - | 563 | - | |||||||
1170 | Notes and accounts receivable, net (notes (6)(d) and | ||||||||||||
(7)) | 15,245,893 | 41 | 13,548,981 | 49 | 13,699,644 | 51 | |||||||
1200 | Other receivables (notes (6)(d) and (6)(e)) | 365,578 | 1 | 376,347 | 1 | 378,657 | 1 | ||||||
1300 | Inventories, net (note (6)(f)) | 18,128,743 | 49 | 10,286,868 | 38 | 9,557,803 | 35 | ||||||
1470 | Prepaid expenses and other current assets | 227,225 | 1 | 197,132 | 1 | 220,274 | 1 | ||||||
36,293,810 | 98 | 26,676,542 | 97 | 26,233,870 | 97 | ||||||||
Non-current assets: | |||||||||||||
1510 | Non-current financial assets at fair value through | ||||||||||||
profit or loss (note (6)(b)) | - | - | 375 | - | 523 | - | |||||||
1517 | Non-current financial assets at fair value through | ||||||||||||
other comprehensive income (note (6)(c)) | 81,077 | - | 40,065 | - | 39,823 | - | |||||||
1600 | Property, plant and equipment (note (6)(g)) | 133,299 | 1 | 133,459 | 1 | 133,457 | 1 | ||||||
1755 | Right-of-use assets (note (6)(h)) | 319,716 | 1 | 317,375 | 1 | 238,199 | 1 | ||||||
1780 | Intangible assets | 16,716 | - | 30,480 | - | 36,964 | - | ||||||
1840 | Deferred tax assets | 87,889 | - | 262,057 | 1 | 223,435 | 1 | ||||||
1900 | Other non-current assets | 81,483 | - | 74,877 | - | 74,735 | - | ||||||
720,180 | 2 | 858,688 | 3 | 747,136 | 3 |
September 30, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||
Liabilities and Equity | Amount | % | Amount | % | Amount | % | ||||||||||||
Current liabilities: | ||||||||||||||||||
2100 | Short-term borrowings (note (6)(i)) | $ | 15,458,863 | 41 | 10,996,048 | 40 | 10,021,657 | 36 | ||||||||||
2130 | Current contract liabilities (note (6)(r)) | 238,246 | 1 | 305,931 | 1 | 271,609 | 1 | |||||||||||
2170 | Accounts payable | 7,113,168 | 19 | 5,308,148 | 19 | 6,686,998 | 25 | |||||||||||
2200 | Other payables (notes (6)(j) and (7)) | 852,444 | 2 | 952,772 | 4 | 679,572 | 3 | |||||||||||
2230 | Current tax liabilities | 741,042 | 2 | 361,274 | 1 | 528,269 | 2 | |||||||||||
2280 | Current lease liabilities (note (6)(l)) | 136,979 | 1 | 135,160 | 1 | 105,023 | - | |||||||||||
2300 | Other current liabilities | 440,178 | 1 | 318,617 | 1 | 321,827 | 1 | |||||||||||
24,980,920 | 67 | 18,377,950 | 67 | 18,614,955 | 68 | |||||||||||||
Non-current liabilities: | ||||||||||||||||||
2500 | Non-current financial liabilities at fair value through | |||||||||||||||||
profit or loss (note (6)(b)) | 35,000 | - | - | - | - | - | ||||||||||||
2530 | Convertible bonds payable (note (6)(k)) | 1,864,893 | 5 | 126,336 | - | 410,000 | 2 | |||||||||||
2570 | Deferred tax liabilities | 697,599 | 2 | 697,487 | 3 | 408,412 | 2 | |||||||||||
2580 | Non-current lease liabilities (note (6)(l)) | 196,287 | 1 | 188,566 | 1 | 137,120 | 1 | |||||||||||
2640 | Non-current net defined benefit liabilities | |||||||||||||||||
(note (6)(n)) | 112,794 | - | 122,222 | - | 115,865 | - | ||||||||||||
2670 | Other non-current liabilities | 181 | - | 181 | - | 181 | - | |||||||||||
2,906,754 | 8 | 1,134,792 | 4 | 1,071,578 | 5 | |||||||||||||
Total liabilities | 27,887,674 | 75 | 19,512,742 | 71 | 19,686,533 | 73 | ||||||||||||
Equity (note (6)(p)): |
3100 | Ordinary shares | 4,235,432 | 11 | 4,159,342 | 15 | 3,990,554 | 15 | ||||||||||||||||||||
3200 | Capital surplus | 1,440,698 | 4 | 1,275,927 | 5 | 1,160,270 | 4 | ||||||||||||||||||||
Retained earnings: | |||||||||||||||||||||||||||
3310 | Legal reserve | 1,132,248 | 3 | 960,709 | 4 | 960,709 | 4 | ||||||||||||||||||||
3320 | Special reserve | 454,583 | 1 | 365,705 | 1 | 365,705 | 1 | ||||||||||||||||||||
3350 | Unappropriated retained earnings | 1,605,974 | 5 | 1,715,388 | 6 | 1,261,865 | 4 | ||||||||||||||||||||
3,192,805 | 9 | 3,041,802 | 11 | 2,588,279 | 9 | ||||||||||||||||||||||
Other equity interest: | |||||||||||||||||||||||||||
3410 | Exchange differences on translation of foreign | ||||||||||||||||||||||||||
financial statements | 338,739 | 1 | (373,405) | (2) | (363,211) | (1) | |||||||||||||||||||||
3420 | Unrealized gains (losses) from financial assets | ||||||||||||||||||||||||||
measured at fair value through other | |||||||||||||||||||||||||||
comprehensive income | (81,358) | - | (81,178) | - | (81,419) | - | |||||||||||||||||||||
257,381 | 1 | (454,583) | (2) | (444,630) | (1) | ||||||||||||||||||||||
Total equity | 9,126,316 | 25 | 8,022,488 | 29 | 7,294,473 | 27 | |||||||||||||||||||||
Total assets | $ | 37,013,990 100 | 27,535,230 100 | 26,981,006 100 | Total liabilities and equity | $ | 37,013,990 | 100 | 27,535,230 | 100 | 26,981,006 | 100 | |||||||||||||||
See accompanying notes to consolidated financial statements.
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Weikeng Industrial Co. Ltd. published this content on 29 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2022 11:30:40 UTC.