14, 2022
☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2021
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
3792 +886-3-566-898137928 (886) 3 577 0055(886) 3 566 8981
U.S. GAAP ☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ | Other ☐ |
* | Not for trading, but only in connection with the listing on |
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Item 1. | Identity of Directors, Senior Management and Advisers |
Item 2. | Offer Statistics and Expected Timetable |
Item 3. | Key Information |
Selected Financial and Operating Data
The following tables set forth our selected consolidated financial data. As a result of the unprecedented transaction of the merger with ChipMOS TECHNOLOGIES (Bermuda) LTD. (“ChipMOS Bermuda”) accounted as capital reorganization and the joint-venture agreement which reclassified Unimos Microelectronics (Shanghai) Co., Ltd. (“Unimos Shanghai”) (formerly known as ChipMOS TECHNOLOGIES (Shanghai) LTD.) as discontinued operations (see “Item 5. Operating and Financial Review and Prospects—Recent Acquisitions”), the following financial data as of and for the years ended December 31, 2015 was restated retrospectively. The selected financial information set out below has been extracted from our consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) issued by the International Accounting Standards Board (IASB) (collectively, “IFRSs”). Our consolidated financial statements for the years ended December 31, 2017, 2018 and 2019, are included in “Item 18. Financial Statements” in this Form20-F.
We implemented the new standard IFRS 16 “Leases” effective as of January 1, 2019, and applied the simplified retrospective method, withright-of-use assets measured at an amount equal to the lease liabilities, adjusted by the amount of the lease obligations payable relating to those leases recognized in the statements of financial position immediately before the date of initial application and will not restate prior years. All financial data should be read in conjunction with “Item 5. Operating and Financial Review and Prospects.” All financial data presented in this Form20-F are qualified in their entirety by reference to the consolidated financial statements and their notes.
Year ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2019 | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
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Consolidated Statements of Comprehensive Income Data: | ||||||||||||||||||||||||
Revenue | $ | 18,837.1 | $ | 18,387.6 | $ | 17,940.9 | $ | 18,480.0 | $ | 20,337.9 | $ | 680.0 | ||||||||||||
Cost of revenue | (14,685.5 | ) | (14,745.5 | ) | (14,703.7 | ) | (15,050.0 | ) | (16,411.8 | ) | (548.7 | ) | ||||||||||||
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Gross profit | 4,151.6 | 3,642.1 | 3,237.2 | 3,430.0 | 3,926.1 | 131.3 | ||||||||||||||||||
Research and development expenses | (747.8 | ) | (838.9 | ) | (985.9 | ) | (939.3 | ) | (1,007.6 | ) | (33.7 | ) | ||||||||||||
Sales and marketing expenses | (90.3 | ) | (72.9 | ) | (64.4 | ) | (53.4 | ) | (56.1 | ) | (1.9 | ) | ||||||||||||
General and administrative expenses | (770.1 | ) | (822.1 | ) | (639.8 | ) | (485.1 | ) | (498.2 | ) | (16.6 | ) | ||||||||||||
Other operating income (expenses), net | 105.1 | 90.3 | 692.8 | 147.5 | 92.9 | 3.1 | ||||||||||||||||||
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Operating profit | 2,648.5 | 1,998.5 | 2,239.9 | 2,099.7 | 2,457.1 | 82.2 | ||||||||||||||||||
Finance costs | (142.5 | ) | (179.1 | ) | (217.3 | ) | (190.3 | ) | (180.2 | ) | (6.0 | ) | ||||||||||||
Share of profit (loss) of associates | 31.3 | 28.9 | (179.5 | ) | (300.1 | ) | (154.9 | ) | (5.2 | ) | ||||||||||||||
Gain on disposal of investment in associates | — | — | 16.9 | — | 973.6 | 32.6 | ||||||||||||||||||
Othernon-operating income (expenses), net | 308.8 | (147.9 | ) | (327.6 | ) | 173.1 | (73.3 | ) | (2.5 | ) | ||||||||||||||
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Profit before income tax | 2,846.1 | 1,700.4 | 1,532.4 | 1,782.4 | 3,022.3 | 101.1 | ||||||||||||||||||
Income tax expense | (935.9 | ) | (177.1 | ) | (550.5 | ) | (456.6 | ) | (513.7 | ) | (17.2 | ) | ||||||||||||
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Profit from continuing operations | 1,910.2 | 1,523.3 | 981.9 | 1,325.8 | 2,508.6 | 83.9 | ||||||||||||||||||
Profit (loss) from discontinued operations | (34.2 | ) | (122.1 | ) | 1,815.0 | — | — | — | ||||||||||||||||
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Profit for the year | $ | 1,876.0 | $ | 1,401.2 | $ | 2,796.9 | $ | 1,325.8 | $ | 2,508.6 | $ | 83.9 | ||||||||||||
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Total comprehensive income for the year, net of income tax | $ | 1,828.8 | $ | 1,164.8 | $ | 2,607.0 | $ | 1,293.0 | $ | 2,381.3 | $ | 79.6 | ||||||||||||
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Profit (loss) attributable to: | ||||||||||||||||||||||||
Equity holders of the Company—continuing operations | $ | 2,164.5 | $ | 1,829.3 | $ | 981.9 | $ | 1,325.8 | $ | 2,508.6 | $ | 83.9 | ||||||||||||
Equity holders of the Company—discontinued operations | (34.2 | ) | (122.1 | ) | 1,815.0 | — | — | — | ||||||||||||||||
Predecessors’ interests | (291.4 | ) | (306.0 | ) | — | — | — | — | ||||||||||||||||
Non-controlling interests | 37.1 | — | — | — | — | — | ||||||||||||||||||
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$ | 1,876.0 | $ | 1,401.2 | $ | 2,796.9 | $ | 1,325.8 | $ | 2,508.6 | $ | 83.9 | |||||||||||||
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Total comprehensive income (loss) attributable to: | ||||||||||||||||||||||||
Equity holders of the Company—continuing operations | $ | 2,167.2 | $ | 1,788.9 | $ | 1,079.7 | $ | 1,293.0 | $ | 2,381.3 | $ | 79.6 | ||||||||||||
Equity holders of the Company—discontinued operations | (62.1 | ) | (318.1 | ) | 1,527.3 | — | — | — | ||||||||||||||||
Predecessors’ interests | (291.4 | ) | (306.0 | ) | — | — | — | — | ||||||||||||||||
Non-controlling interests | 15.1 | — | — | — | — | — | ||||||||||||||||||
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$ | 1,828.8 | $ | 1,164.8 | $ | 2,607.0 | $ | 1,293.0 | $ | 2,381.3 | $ | 79.6 | |||||||||||||
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Basic earnings per share: | ||||||||||||||||||||||||
Equity holders of the Company—continuing operations | $ | 2.47 | $ | 2.13 | $ | 1.16 | $ | 1.65 | $ | 3.45 | $ | 0.12 | ||||||||||||
Equity holders of the Company—discontinued operations | (0.04 | ) | (0.14 | ) | 2.14 | — | — | — | ||||||||||||||||
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Equity holders of the Company | 2.43 | 1.99 | 3.30 | 1.65 | 3.45 | 0.12 | ||||||||||||||||||
Predecessors’ interests | (0.33 | ) | (0.35 | ) | — | — | — | — | ||||||||||||||||
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$ | 2.10 | $ | 1.64 | $ | 3.30 | $ | 1.65 | $ | 3.45 | $ | 0.12 | |||||||||||||
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Diluted earnings per share: | ||||||||||||||||||||||||
Equity holders of the Company—continuing operations | $ | 2.44 | $ | 2.11 | $ | 1.13 | $ | 1.63 | $ | 3.40 | $ | 0.11 | ||||||||||||
Equity holders of the Company—discontinued operations | (0.04 | ) | (0.14 | ) | 2.10 | — | — | — | ||||||||||||||||
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Equity holders of the Company | 2.40 | 1.97 | 3.23 | 1.63 | 3.40 | 0.11 | ||||||||||||||||||
Predecessors’ interests | (0.33 | ) | (0.35 | ) | — | — | — | — | ||||||||||||||||
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$ | 2.07 | $ | 1.62 | $ | 3.23 | $ | 1.63 | $ | 3.40 | $ | 0.11 | |||||||||||||
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Basic earnings per equivalent ADS: | ||||||||||||||||||||||||
Equity holders of the Company—continuing operations | $ | 49.34 | $ | 42.56 | $ | 23.20 | $ | 33.03 | $ | 69.00 | $ | 2.31 | ||||||||||||
Equity holders of the Company—discontinued operations | (0.78 | ) | (2.84 | ) | 42.87 | — | — | — | ||||||||||||||||
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Equity holders of the Company | 48.56 | 39.72 | 66.07 | 33.03 | 69.00 | 2.31 | ||||||||||||||||||
Predecessors’ interests | (6.64 | ) | (7.12 | ) | — | — | — | — | ||||||||||||||||
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| $ | 41.92 | $ | 32.60 | $ | 66.07 | $ | 33.03 | $ | 69.00 | $ | 2.31 | ||||||||||||
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Year ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2019 | |||||||||||||||||||
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Diluted earnings per equivalent ADS: | ||||||||||||||||||||||||
Equity holders of the Company—continuing operations | $ | 48.73 | $ | 42.21 | $ | 22.68 | $ | 32.59 | $ | 68.06 | $ | 2.28 | ||||||||||||
Equity holders of the Company—discontinued operations | (0.77 | ) | (2.82 | ) | 41.93 | — | — | — | ||||||||||||||||
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Equity holders of the Company | 47.96 | 39.39 | 64.61 | 32.59 | 68.06 | 2.28 | ||||||||||||||||||
Predecessors’ interests | (6.56 | ) | (7.06 | ) | — | — | — | — | ||||||||||||||||
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$ | 41.40 | $ | 32.33 | $ | 64.61 | $ | 32.59 | $ | 68.06 | $ | 2.28 | |||||||||||||
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Weighted-average number of shares outstanding: | ||||||||||||||||||||||||
Basic | 877.4 | 859.6 | 846.7 | 802.7 | 727.1 | 727.1 | ||||||||||||||||||
Diluted | 888.3 | 866.8 | 865.8 | 813.7 | 737.1 | 737.1 |
As of December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2019 | |||||||||||||||||||
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Consolidated Statements of Financial Position Data: | ||||||||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Available-for-sale financial assets | $ | 10.0 | $ | 10.0 | $ | 20.9 | $ | — | $ | — | $ | — | ||||||||||||
Non-current financial assets at fair value through profit or loss | — | — | — | 11.5 | 11.0 | 0.4 | ||||||||||||||||||
Non-current financial assets at fair value through the other comprehensive income | — | — | — | 174.4 | 121.8 | 4.1 | ||||||||||||||||||
Investment in associates | 346.3 | 369.3 | 3,433.3 | 3,863.7 | 3,392.9 | 113.4 | ||||||||||||||||||
Non-current financial assets at amortized cost | — | — | — | 99.1 | 68.5 | 2.3 | ||||||||||||||||||
Property, plant and equipment | 14,211.6 | 13,497.2 | 15,265.3 | 16,819.6 | 17,979.4 | 601.1 | ||||||||||||||||||
Right-of-use assets | — | — | — | — | 687.1 | 23.0 | ||||||||||||||||||
Othernon-current assets | 341.6 | 523.5 | 339.4 | 277.3 | 282.8 | 9.4 | ||||||||||||||||||
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14,909.5 | 14,400.0 | 19,058.9 | 21,245.6 | 22,543.5 | 753.7 | |||||||||||||||||||
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Current assets: | ||||||||||||||||||||||||
Inventories | 1,667.7 | 1,878.0 | 1,929.2 | 1,778.8 | 1,767.6 | 59.1 | ||||||||||||||||||
Current financial assets at amortized cost | — | — | — | 169.2 | 169.0 | 5.7 | ||||||||||||||||||
Current contract assets | — | — | — | 299.8 | 377.9 | 12.6 | ||||||||||||||||||
Accounts and notes receivable | 3,890.5 | 4,140.2 | 4,015.8 | 4,747.4 | 4,454.7 | 148.9 | ||||||||||||||||||
Other current assets | 422.8 | 201.3 | 220.3 | 250.4 | 289.1 | 9.7 | ||||||||||||||||||
Cash and cash equivalents | 12,127.4 | 7,571.4 | 8,035.7 | 4,642.5 | 4,704.1 | 157.3 | ||||||||||||||||||
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18,108.4 | 13,790.9 | 14,201.0 | 11,888.1 | 11,762.4 | 393.3 | |||||||||||||||||||
Non-current assets held for sale | — | 3,105.1 | — | — | — | — | ||||||||||||||||||
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18,108.4 | 16,896.0 | 14,201.0 | 11,888.1 | 11,762.4 | 393.3 | |||||||||||||||||||
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Total assets | $ | 33,017.9 | $ | 31,296.0 | $ | 33,259.9 | $ | 33,133.7 | $ | 34,305.9 | $ | 1,147.0 | ||||||||||||
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Equity and liabilities: | ||||||||||||||||||||||||
Equity attributable to equity holders of the Company | $ | 18,906.9 | $ | 16,247.7 | $ | 18,120.9 | $ | 18,021.2 | $ | 19,530.6 | $ | 653.0 | ||||||||||||
Non-controlling interests | — | — | — | — | — | — | ||||||||||||||||||
Predecessors’ interests | 2,127.5 | — | — | — | — | — | ||||||||||||||||||
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Total equity | 21,034.4 | 16,247.7 | 18,120.9 | 18,021.2 | 19,530.6 | 653.0 | ||||||||||||||||||
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Non-current liabilities: | ||||||||||||||||||||||||
Long-term bank loans | 4,985.8 | 9,687.7 | 7,498.9 | 9,042.1 | 8,293.2 | 277.3 | ||||||||||||||||||
Non-current lease liabilities | — | — | — | — | 668.4 | 22.3 | ||||||||||||||||||
Long-term lease obligations payable | — | 29.3 | 18.1 | — | — | — | ||||||||||||||||||
Othernon-current liabilities | 610.8 | 641.0 | 679.0 | 830.6 | 794.8 | 26.6 | ||||||||||||||||||
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5,596.6 | 10,358.0 | 8,196.0 | 9,872.7 | 9,756.4 | 326.2 | |||||||||||||||||||
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Current liabilities: | ||||||||||||||||||||||||
Current contract liabilities | — | — | — | 1.5 | 1.2 | 0.1 | ||||||||||||||||||
Accounts payable | 708.5 | 825.1 | 688.2 | 637.6 | 819.5 | 27.4 | ||||||||||||||||||
Payable to contractors and equipment suppliers | 524.0 | 550.3 | 713.3 | 1,516.7 | 972.8 | 32.5 | ||||||||||||||||||
Other payables | 1,868.7 | 1,412.1 | 1,980.2 | 1,678.7 | 2,004.3 | 67.0 | ||||||||||||||||||
Current lease liabilities | — | — | — | — | 24.6 | 0.8 | ||||||||||||||||||
Other current liabilities | 588.1 | 241.6 | 436.9 | 640.1 | 448.1 | 15.0 | ||||||||||||||||||
Long-term lease obligations payable, current portion | — | 11.3 | 11.8 | 17.8 | — | — | ||||||||||||||||||
Long-term bank loans, current portion | 1,548.7 | 1,062.3 | 2,143.2 | 747.4 | 748.4 | 25.0 | ||||||||||||||||||
Short-term bank loans | 1,148.9 | — | 969.4 | — | — | — | ||||||||||||||||||
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6,386.9 | 4,102.7 | 6,943.0 | 5,239.8 | 5,018.9 | 167.8 | |||||||||||||||||||
Liabilities directly related tonon-current assets held for sale | — | 587.6 | — | — | — | — | ||||||||||||||||||
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6,386.9 | 4,690.3 | 6,943.0 | 5,239.8 | 5,018.9 | 167.8 | |||||||||||||||||||
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Total liabilities | 11,983.5 | 15,048.3 | 15,139.0 | 15,112.5 | 14,775.3 | 494.0 | ||||||||||||||||||
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Total equity and liabilities | $ | 33,017.9 | $ | 31,296.0 | $ | 33,259.9 | $ | 33,133.7 | $ | 34,305.9 | $ | 1,147.0 | ||||||||||||
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Year ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2019 | |||||||||||||||||||
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Consolidated Statement of Cash Flows Data: | ||||||||||||||||||||||||
Capital expenditures | $ | 3,644.6 | $ | 4,691.0 | $ | 4,849.3 | $ | 4,945.6 | $ | 4,896.7 | $ | 163.7 | ||||||||||||
Depreciation and amortization | 3,021.9 | 3,231.3 | 2,899.3 | 3,376.6 | 3,731.9 | 124.8 | ||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||||||
Operating activities | 5,395.8 | 3,688.0 | 4,157.3 | 4,129.2 | 5,982.4 | 200.0 | ||||||||||||||||||
Investing activities | (4,504.2 | ) | (4,556.7 | ) | (3,493.4 | ) | (5,129.3 | ) | (4,237.8 | ) | (141.6 | ) | ||||||||||||
Financing activities | (4,028.9 | ) | (3,223.9 | ) | (550.8 | ) | (2,400.4 | ) | (1,677.3 | ) | (56.1 | ) | ||||||||||||
Effect of exchange rate changes | (0.5 | ) | (73.5 | ) | (38.6 | ) | 7.3 | (5.7 | ) | (0.2 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (3,137.8 | ) | $ | (4,166.1 | ) | $ | 74.5 | $ | (3,393.2 | ) | $ | 61.6 | $ | 2.1 |
Exchange Rates
COVID-19 pandemic had contributed to market speculation and fears. On March 9, 2020, the fall of S&P500 triggered a market-wide circuit breaker that caused the trading curb for 15 minutes. Since then, on March 12, 16 and 18, 2020, the market-side circuit breaker was triggered again as S&P500 continued to fall. As our ADSs are listed on NASDAQ, the speculation and fears overCOVID-19 pandemic inevitably caused a fall of the price of our ADSs, and there is no assurance on when the price of our ADSs would recover as the pandemic persists.
suitslawsuits against us in the United States.
The recent outbreak in world wide
It is unknown how global supply chains may be affected if such an epidemic persists for an extended period of time. We As a result, may incur expenses or delays relating to such events outside of our control, which could have a material adverse impact on our business, operating results and financial condition.
In December 2019,
2022.
Uncertainties about“trade war” betweenTaiwan Power Company, or other power consumers on the United Statessame power grid, which have resulted in interruptions to our operations. Such shortages or interruptions in electricity supply could further be exacerbated by changes in the energy policy of the government which intends to make Taiwan a nuclear-free country. If we are unable to secure reliable and Mainlanduninterrupted supply of electricity to power our manufacturing fabs within Taiwan, our ability to fill customers’ orders would be severely jeopardized. Also, in 2020 and 2021, Taiwan has faced one of the worst droughts in decades. Government imposes restrictions on the supply and usage of water by industrial companies like us as responses, it could disrupt our operations. We maintain a comprehensive risk management system dedicated to the safety of people, the conservation of natural resources, and the protection of property. In order to effectively handle emergencies and natural disasters, at each facility management has developed comprehensive plans and procedures that focus on risk prevention, emergency response, crisis management and business continuity. All ChipMOS manufacturing factories have been ISO 14001 certified (environmental management system) and OHSAS 18001 certified (occupational health and safety management system).
Due to the complexity of semiconductor supply chain which creates difficulty to separate the pure manufacture site of oneend-product from the rest of the supply chain, any changes in U.S. trade policy could trigger retaliatory actions by affected countries, e.g., Mainland China, resulting in ‘trade wars,’ in increased costs for goods imported into the United States, which may reduce customer demand for these products if the parties having to pay those tariffs increase their prices, or in trading partners limiting their trade with the United States. If any of these consequences are realized, thus decreasing the demands from our customers or increasing the price quoted by our suppliers, such change may materially and adversely affects our results of operations.
affected.
On May 11, 2020, one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory, which holds 50.94% equity interests of Unimos Shanghai after completed transaction.
In addition, under the current ROC law, such withdrawing holder is required to register with the TWSE and appoint a local agent in the ROC to, among other things, open a bank account and open a securities trading account with a local securities brokerage firm, pay taxes, remit funds and exercise such holder’s rights as a shareholder. Furthermore, such withdrawing holder must appoint a local bank or local securities firm to act as custodian for confirmation and settlement of trades, safekeeping of securities and cash proceeds and reporting and declaration of information. Without satisfying these requirements,
(1) | the Company pays stock dividends on our shares; |
(2) | the Company makes a free distribution of our shares; |
(3) | holders of our ADSs exercise preemptive rights in the event of capital increases; or |
(4) | to the extent permitted under the Deposit Agreement and the relevant custody agreement and within the amount of depositary receipts which have been withdrawn, investors purchase our shares, directly or through the depositary, on the TWSE, and deliver our shares to the custodian for deposit into our ADR facility, or our existing shareholders deliver our shares to the custodian for deposit into our ADR facility. |
Item 4. | Information on the Company |
The following chart illustrates our corporate structure and our equity interest in each of our principal subsidiaries as of the date of this Annual Report on Form
(1) | Under IFRS 10 “Consolidated Financial Statements”, we are required to consolidate the financial results of any subsidiaries in which we hold a controlling interest or voting interest in excess of 50% or we have the power to direct or cause the direction of the management and policies, notwithstanding the lack of majority ownership. In |
On May 11, 2020, one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory, which holds 50.94% equity interests of Unimos Shanghai after completed transaction. and Unimos Microelectronics (Shanghai) Co., Ltd. or formerly known as ChipMOS TECHNOLOGIES (Shanghai) LTD. Before the transfer
On November 30, 2016, ChipMOS BVI entered into the Equity Interest Transfer Agreements with Unigroup Guowei and other strategic investors. Under the agreements, ChipMOS BVI would sell 54.98% of the equity interests of Unimos Shanghai, to the strategic investors. Following the transaction which was completed in March 2017, Unigroup Guowei holds 48% equity interests of Unimos Shanghai, the other strategic investors, including a limited partnership owned by Unimos Shanghai’s employees, own approximately 6.98% equity interest of Unimos Shanghai, and ChipMOS BVI holds 45.02% equity interests of Unimos Shanghai. Unimos Shanghai is no longer the subsidiary of the Company. ChipMOS BVI and the strategic investors agreed to further invest RMB 1,074 million into Unimos Shanghai. The further investment was completed in two tranches, one in July 2017 at RMB 687 million and one in February 2018 at RMB 387 million. In July 2018 ChipMOS TECHNOLOGIES (Shanghai) LTD. was renamed Unimos Microelectronics (Shanghai) Co., Ltd.
2022.research and development, and marketing of semiconductors circuits,and electronic related produces, for its parent company and affiliates, throughout Mainland China.research and development, and marketing of semiconductors circuits,and electronic related produces, for its parent company and affiliates, throughout the United States of America. ChipMOS USA began generating revenue in 2001. As of December 31, 2019,2021, ChipMOS Taiwan owned 100% of the outstanding shares of ChipMOS USA.2019, 20.9%2021, 21.5% of our revenue was derived from testing services for memory and logic/mixed-signal semiconductors, 25.3%29.1% from assembly services for memory and logic/mixed-signal semiconductors, 34.1%30.0% from LCD, OLED and other display panel driver semiconductor assembly and testing services and 19.7%19.4% from bumping services for semiconductors, respectively.recently,since 2020, many countries have taken extreme measures to contain the transmission, including total or partial lockdown of the infected areas, travel bans, closures of factories, among others. That may disruptothers, which disrupted the semiconductor supply chain and changed people’s lifestyle and end product demand. For example, work from home and learning from home, led the cloud storage and DDIC demand for an indefinite periodTV/NB became stronger. Launch in new 5G smart phone also consumed multiple semiconductor components, such as PMIC, CIS, and TDDI, which tightened the capacity of time. This8” wafer foundry in 2021. And semiconductor for automotive is a rapidly evolving situationalso in very serious shortage up to date. Recently, semiconductor capacity, including wafer foundry, raw material supply and the impact ofCOVID-19 on the global economy and our business is uncertain at this time. While the continued spread ofCOVID-19 and the measures taken by the governments,OSAT, are still shortage in response toCOVID-19 could adversely impact global semiconductor industry.
2021.
Process | Description | |
Circuit Design | The design of a semiconductor is developed by laying out circuit patterns and interconnections. | |
Wafer Fabrication | Wafer fabrication begins with the generation of a photomask, a photographic negative onto which a circuit design pattern is etched or transferred by an electron beam or laser beam writer. Each completed wafer contains many fabricated chips, each known as a die. | |
Wafer Probe | Each individual die is then electrically tested, or probed, for defects. Dies that fail this test are discarded, or, in some cases, salvaged using laser repair. |
Process | Description | |
Assembly | The assembly of semiconductors serves to protect the die, facilitates its integration into electronic systems and enables the dissipation of heat. The process begins with the dicing of the wafers into chips. Each die is affixed to a leadframe-based or organic substrate-based substrate. Then, electrical connections are formed, in many cases by connecting the terminals on the die to the inner leads of the package using fine metal wires. Finally, each chip is encapsulated for protection, usually in a molded epoxy enclosure. | |
Final Test | Assembled semiconductors are tested to ensure that the device meets performance specifications. Testing takes place on specialized equipment using software customized for each application. For memory semiconductors, this process also includes “burn-in” testing to screen out defective devices by applying very high temperatures and voltages onto the memory device. |
Continually develop
• | Enhance Pb free ball level capability (increase thermal cycle lifetime >1000 cycles). |
Developing fine pitch inner lead width and space for COF ILB assembly.
Evaluate thinner PI film of COF tape to increase the tape flexible property for full screen of FDP device development.
Developing COF FT test condition in low temperature condition-40ºC for automotive device specification.
Implement DBG/ SDBG for thin wafer capability.
16DP BGA/SiP product development.
In 2019,2021, we spent approximately 5.0%4.2% of our revenue on research and development. We will continue to invest our resources to recruit and retain experienced research and development personnel. As of March 31, 2020,2022, our research and development team comprised 645661 persons.
Year ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Testing | 26.9 | % | 25.9 | % | 20.9 | % | ||||||
Assembly | 29.4 | 25.3 | 25.3 | |||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing revenue | 26.7 | 30.8 | 34.1 | |||||||||
Bumping | 17.0 | 18.0 | 19.7 | |||||||||
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Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
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Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Testing | 20.9 | % | 21.7 | % | 21.5 | % | ||||||
Assembly | 25.3 | 26.1 | 29.1 | |||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing revenue | 34.1 | 30.5 | 30.0 | |||||||||
Bumping | 19.7 | 21.7 | 19.4 | |||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
16GHz.16Gbps. The semiconductors we test includeMEMSautomotive electronics used for home entertainment/media center, personal computer applications, network/communication, and mobile smart devices.devices and cars. We also test a variety of application specific integrated circuits (“ASICs”), for applications such as FHD/UHD/8K LCD TV with AI functions, Smartphone, Tablet PC and Cars etc.
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Wafer Lapping | The wafers are ground to their required thickness. | |
Die Saw | Wafers are cut into individual dies, or chips, in preparation for the die-attach process. | |
Die Attach | Each individual die is attached to the leadframe or organic substrate. | |
Wire Bonding | Using gold or silver wires, to connect the I/O pads on the die to the inner lead of leadframe or substrate. | |
Flip Chip Bonding | Using solder bumps or Cu pillar bumps on die, to connect the leadframe or substrate pad via soldering reflow. | |
Molding | The die and wires are encapsulated to provide physical support and protection. | |
Marking | Each individual package is marked to provide product identification. | |
Dejunking and Trimming | Mold flash is removed from between the lead shoulders through dejunking, and the dambar is cut during the trimming process. | |
Electrical Plating | A solderable coating is added to the package leads to prevent oxidization and to keep solder wettability of the package leads. | |
Ball Mount and Reflow | Each electrode pad of the substrate is first printed with flux, after which solder balls are mounted, heated and attached to the electrode pad of the substrate through a reflow oven. | |
Forming/Singulation | Forming involves the proper configuration of the device packages leads, and singulation separates the packages from each other. |
Package | Lead- count | Description |
| |||
Thin Small Outline Package I (TSOP I) | 48-56 | Designed for high volume production of low lead-count memory devices, including flash memory, SRAM and MROM | Notebook computers, personal computers, still and video cameras and standard connections for peripherals for computers | |||
Thin Small Outline Package II (TSOP II) | 44-86 | Designed for memory devices, including flash memory, SRAM, SDRAM and DDR DRAM | Disk drives, recordable optical disk drives, audio and video products, consumer electronics, communication products |
Package | Lead- count | Description | End-User Applications | |||
Quad Flat No Lead (QFN) | 8-132 | Thermal enhanced quad flat no lead package providing small footprint (chip scale), light weight with good thermal and electrical performance | Wireless communication products, notebook computers, PDAs, consumer electronics | |||
Low-Profile Quad Flat Package (LQFP) | Low-profile and light weight package designed for ASICs, digital signal processors, microprocessors/ controllers, graphics processors, gate arrays, SSRAM, SDRAM, personal computer chipsets and mixed-signal devices | Wireless communication products, notebook computers, digital cameras, cordless/radio frequency devices | ||||
Small Outline Package (SOP) | 8 | Designed for low lead-count memory and logic semiconductors, including SRAM and micro-controller units | Personal computers, consumer electronics, audio and video products, communication products | |||
Multi-Chip Package (TSOP) | 44-86 | Our patented design for memory devices, including SRAM, DRAM and SDRAM | Notebook computers, personal computers, disk drives, audio and video products, consumer products, communication products |
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Flip Chip Quad Flat No Lead (FCQFN) | 6-24 | Thermal enhanced quad flat no lead package providing small footprint (chip scale), light weight with good thermal and electrical performance Flip chip process is designed for better electrical performance compared to wire bonding process | Wireless communication products, notebook computers, PDAs, consumer electronics |
Package | Connections | Description |
| |||
Mini BGA | 24-400 | Low-cost and space-saving assembly designed for low input/output count, suitable for semiconductors that require a smaller package size than standard BGA | Memory, analog, flash memory, ASICs, radio frequency devices, personal digital assistants, cellular handsets, communication products, notebook computers, wireless systems | |||
Fine-Pitch BGA | 54-126 | Our patented design for DRAM products that require high performance and chip scale package (CSP) | Notebook computers, cellular handsets, global positioning systems, personal digital assistants, wireless systems | |||
Very Thin Fine-Pitch BGA | 48-176 | Similar structure of Mini BGA package with thinner and finer ball pitch that is designed for use in a wide variety of applications requiring small size, high reliability and low unit cost | Handheld devices, notebook computers, disk drives, wireless and mobile communication products | |||
Land Grid Array (LGA) | Thinner and lighter assembly designed essential to standard BGA without solder balls, suitable for applications that require high electrical performance | Disk drives, memory controllers, wireless, mobile communication products | ||||
Multi-Chip BGA | 48-153 | Designed for assembly of two or more memory chips (to increase memory density) or combinations of memory and logic chips in one BGA package | Notebook computers, digital cameras, personal digital assistants, global positioning systems, sub-notebooks, board processors, wireless systems | |||
Stacked-Chip BGA | 24-345 | Designed for assembly of two or more memory chips or logic and memory chips in one CSP, reducing the space required for memory chips | Cellular handsets, digital cameras, personal digital assistants, wireless systems, notebook computers, global positioning systems | |||
Flip Chip Chip-scale Package (FCCSP) | 16-1500+ | Better IC protection and solder joint reliability compared to direct chip attach (DCA) and chip on board (COB) | Memory, logic, microprocessor, application processor (AP), baseband (BB), solid state device, radio frequency (RF) |
Package | Connections | Description | End-User Applications | |||
Multi-Chip Hybrid Package (FC+WB) | 153-345 | Designed for assembly of two or more memory chips or combinations of memory and logic chips in one BGA package with both of flip chip and wire bonding | Embedded Multi Media Card (eMMC), BGA SSD | |||
Chip on Wafer (CoW) | 5-30 | Integrated two different functional chips to a closer form into a compact package. Low-cost solution compared to through-silicon via (TSV) | Integrated MEMS | |||
Land Grid Array (LGA) for FPS (finger Print Sensor) | 20-52 | Very thin clearance (50um) between chip & compound hard color coating with scratch resistance for protection and appearance matching of mobile devices | Security protection for mobile devices, home, notebook computer, etc. | |||
Wafer Level Chip Scale Package (WLCSP) | 6-125 | WLCSP package size is almost the same as die size. Simple assembly process flow, low cost. Small package suitable to apply on hand-held 3C electronic products | Electronic Compass, audio converter, nor flash product, power control, sensor magnetometer, MEMS magnetometer, CMOS Image Sensor controller, Laser diode driver, power manager IC (PMIC) |
Package | Connections | Description |
| |||
WLCSP | 4-90 | Very small package size (identical to die size), suitable for the low pin count and require the small package size application | Memory, ASICs, PMIC, MEMS devices, controllers, for mobile phone, tablet, ultra book computer and wearable product |
Package | Connections | Description |
| |||
FC CSP | 8-1288 | Superior electrical performance, smaller form factor | Power device, RF, |
set.set and NB as well. In recent years, there has been an observable trend with which the average inner lead pitch of COF package went down to 23um with aboutmore than 50% of market share.demand. High thermal dissipation packaging technology is available for mass production. And dual IC with high thermal dissipation COF packaging technology is in developmentready for 8K TV market. 18um18um/16um inner lead pitch of1-metal layer and 18um inner lead pitchhas been released to mass productionis in development for the narrow frame smartphonecoming AR/VR gear requirement. And we can test display driver semiconductors with frequencies offrequency up to 4 Gbps4Gbps and 6.5Gbps to fulfill high speed data rate requirement of semiconductor.requirement. For future automotive application, low temperature COF package testing technology is developed.processes involveprocess involves the following steps: Screen out the defect chips which fail to meet the device spec. Wafers are cut into individual dies, or chips, in preparation for inner lead bonding process. An inner lead bonderbonding machine connects the chip to the printed circuit tape. The package is dispensed aAn underfill process to fill resin to protect the inner lead.lead and chip.
Potting Cure | The potting cure process matures the resin used during the potting oven with high temperatures. | ||
Marking | A laser marker is used to provide product identification. | ||
Final Testing | To verify device spec. within electrical testing after assembly process. | ||
Taping | To attach heat sink/spreader or stiffener material onto COF package. | ||
Inspection and Packing | Each individual die with tape is visually or auto inspected for defects. The dies are packed within a reel into an aluminum bag after completion of the inspection process. |
Chip Probing | To screen out the defect chips which fail to meet the device spec. | |
Wafer Lapping/Polish | Wafers are ground or with polished to their required thickness. | |
Laser Marking | A laser mark is applied on IC backside in wafer form to provide product traceability. | |
Laser Grooving | Application in wafer within Low-K material to reduce chipping of chips during dicing process. | |
Die Saw | Wafers are cut into individual dies, or chips, in preparation for the pick and place process. | |
Auto Optical Inspection | Process of wafer inspection is detecting defect to separate chips at pick and place station. | |
Pick and Place | Each individual die is picked and placed into a chip tray. | |
Inspection and Packing | Each individual die in a tray is visually or auto-inspected for defects. The dies are packed within a tray into an aluminum bag after completion of the inspection process. |
We expect prospects in 2020 will includeIn 2021, we increased gold bumping wafer shipments resulting from demand for of high refresh rate panel, 5G mobile, gaming monitor, 8K display and automotive infotainment applications. In 2022, ChipMOS aims to develop VR/AR wearable devices for metaverse application opportunity. Meanwhile, medical, automotive and integration TDDI products are still our main business goal.
Etron Technology, Inc.
GigaDevice Semiconductor Inc.
In 2017, our top three customers accounted for approximately 19%, 15% and 10% of our revenue, respectively. In 2018, our top three customers accounted for approximately 21%, 14% and 11% of our revenue, respectively.
In 2020, our top three customers accounted for approximately 22%, 12% and 10% of our revenue, respectively. In 2021, our top three customers accounted for approximately 21%, 10% and 9% of our revenue, respectively.
Since 2008, we have also focused on our business with smaller customers and customers who do not place orders on a regular basis.
Year ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Taiwan | 73 | % | 80 | % | 78 | % | ||||||
Japan | 13 | 10 | 9 | |||||||||
Singapore | 10 | 6 | 7 | |||||||||
Others | 4 | 4 | 6 | |||||||||
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Total | 100 | % | 100 | % | 100 | % | ||||||
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Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Taiwan | 78 | % | 80 | % | 79 | % | ||||||
Japan | 9 | 5 | 6 | |||||||||
Singapore | 7 | 8 | 6 | |||||||||
PRC | 4 | 5 | 7 | |||||||||
Others | 2 | 2 | 2 | |||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
We have appointed anon-exclusive sales agent for promoting our services for memory and display driver IC semiconductors in Korea. Our sales agent helps us promote and market our services, maintain relations with our existing and potential customers and communicate with our customers on quality, specific requirements and delivery issues. We generally pay our sales agent a commission of 3.5% of our revenue from services for memory semiconductors and display driver IC in Korea. In 2017, 2018 and 2019, we paid approximately NT$5 million, NT$3 million and NT$764 thousand (US$26 thousand), respectively, in commissions to our sales agent.
Our research and development efforts have been focused primarily on new technology instruction, improving efficiency and production yields of our testing, assembly and bumping services. From time to time, we jointly develop new technologies with local and international equipment and material manufacturing company to enhance the competitiveness. In testing area, our research and development efforts focused particularly on high speed probing, fine pitch probing capability and wafer level
In 2019, we launched SDBG technology to implement multi-chip assembly and module of flash products for NAND Flash applications.
price.
We will continue to enhance related management to reduce industrial waste, save energy and control pollution. For products in conformity with Green Product Requirement, the Company obtained Green Partner certification from Sony Corporation of Japan. Furthermore, we passed QC080000QC 080000 certification and “Greenhouse Gas Verification Statement”(ISO14064-1) (“ISO
Location of Facility | Primary Use |
| Principal Equipment | |||
Chupei, Hsinchu | Testing/Gold Bumping | 38,166 | 10 steppers 19 sputters
324 testers | |||
Hsinchu Industrial Park | Testing | 25,864 |
104 testers
27 burn-in ovens | |||
Hsinchu Science Park | Testing | 31,168 |
186 testers
53 burn-in ovens | |||
Southern Taiwan Science Park | Assembly/Testing |
968 wire bonders
113 inner-lead bonders
630 testers |
Item 4A. | Unresolved Staff Comments |
Item 5. | Operating and Financial Review and Prospects |
On November 30, 2016, the Company and Unigroup Guowei executed the Equity Interest Transfer Agreement. Under the agreement, ChipMOS BVI, a wholly-owned subsidiary of the Company, would sell 54.98% of the equity interests of its wholly-owned subsidiary, Unimos Shanghai, to strategic investors, including Unigroup Guowei, a subsidiary of Tsinghua Unigroup, which will hold 48% equity interests of Unimos Shanghai, and the other strategic investors, including a limited partnership owned by Unimos Shanghai’s employees, will own approximately 6.98% equity interest of Unimos Shanghai. As of December 31, 2016, the equity transfer was not completed, and therefore, the assets, liabilities and equity related to Unimos Shanghai have been reclassified as held for sale and presented as discontinued operations according to IFRS 5“Non-current Assets Held for Sale and Discontinued Operations”. The equity transfer was completed in March 2017 and Unimos Shanghai is no longer a subsidiary of the Company. On December 16, 2019, Unigroup Guowei and one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory, which holds 50% equity interests of Unimos Shanghai after completed transaction. For additional information see “Item 4. Information on the Company—Agreements with Tsinghua Unigroup Ltd.”
On January 21, 2016, the board of directors of ChipMOS Bermuda approved the merger with and into the Company, with the latter being the surviving company. In accordance with the agreement and plan of merger entered into between the Company and ChipMOS Bermuda on January 21, 2016, the shareholders of ChipMOS Bermuda received (i) US$3.71 in cash and (ii) 0.9355 ADS representing 18.71 shares of the Company (each ADS representing 20 new common shares, par value of NT$10 each, to be issued by the Company) in exchange for each outstanding ChipMOS Bermuda common share. The Merger was completed and effective on October 31, 2016. The transaction was accounted as a capital reorganization within the Group. The Company’s comparative financial statements present financial information as if ChipMOS Bermuda had always been combined with the Company, restated retrospectively. The Company issued 512,405,340 common shares represented by the ADSs and the ADSs were listed on the NASDAQ Global Select Market on November 1, 2016.
Year ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Testing | $ | 4,838.2 | $ | 4,790.1 | $ | 4,257.8 | $ | 142.4 | ||||||||
Assembly | 5,259.3 | 4,679.7 | 5,148.9 | 172.2 | ||||||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing | 4,789.9 | 5,694.7 | 6,922.2 | 231.4 | ||||||||||||
Bumping | 3,053.5 | 3,315.5 | 4,009.0 | 134.0 | ||||||||||||
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Total | $ | 17,940.9 | $ | 18,480.0 | $ | 20,337.9 | $ | 680.0 | ||||||||
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Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Testing | $ | 4,257.8 | $ | 5,002.7 | $ | 5,899.6 | $ | 212.6 | ||||||||
Assembly | 5,148.9 | 6,002.0 | 7,963.7 | 287.1 | ||||||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing | 6,922.2 | 7,023.0 | 8,211.1 | 296.0 | ||||||||||||
Bumping | 4,009.0 | 4,983.7 | 5,325.6 | 192.0 | ||||||||||||
Total | $ | 20,337.9 | $ | 23,011.4 | $ | 27,400.0 | $ | 987.7 | ||||||||
On a case by case, we offer volume discounts to customers who purchase large quantities of our services and special discounts to customers who use our vertically integrated services and may offer special payment terms, including longer payment cycles, to key customers during downturns in the market so as to retain business from such key customers.
Year ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Gross profit: | ||||||||||||||||
Testing | $ | 1,733.4 | $ | 1,612.2 | $ | 1,033.9 | $ | 34.6 | ||||||||
Assembly | 265.1 | 148.4 | 172.0 | 5.8 | ||||||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing | 1,221.4 | 1,547.4 | 2,133.0 | 71.3 | ||||||||||||
Bumping | 17.3 | 122.0 | 587.2 | 19.6 | ||||||||||||
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Total | $ | 3,237.2 | $ | 3,430.0 | $ | 3,926.1 | $ | 131.3 | ||||||||
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Gross profit margin: | ||||||||||||||||
Testing | 35.8 | % | 33.7 | % | 24.3 | % | 24.3 | % | ||||||||
Assembly | 5.0 | 3.2 | 3.3 | 3.3 | ||||||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing | 25.5 | 27.2 | 30.8 | 30.8 | ||||||||||||
Bumping | 0.6 | 3.7 | 14.6 | 14.6 | ||||||||||||
Overall | 18.0 | % | 18.6 | % | 19.3 | % | 19.3 | % |
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Gross profit: | ||||||||||||||||
Testing | $ | 1,033.9 | $ | 1,651.0 | $ | 2,188.0 | $ | 78.9 | ||||||||
Assembly | 172.0 | 533.3 | 1,370.1 | 49.4 | ||||||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing | 2,133.0 | 1,996.3 | 2,725.9 | 98.2 | ||||||||||||
Bumping | 587.2 | 851.6 | 970.0 | 35.0 | ||||||||||||
Total | $ | 3,926.1 | $ | 5,032.2 | $ | 7,254.0 | $ | 261.5 | ||||||||
Gross profit margin: | ||||||||||||||||
Testing | 24.3 | % | 33.0 | % | 37.1 | % | 37.1 | % | ||||||||
Assembly | 3.3 | 8.9 | 17.2 | 17.2 | ||||||||||||
LCD, OLED and other display panel driver semiconductor assembly and testing | 30.8 | 28.4 | 33.2 | 33.2 | ||||||||||||
Bumping | 14.6 | 17.1 | 18.2 | 18.2 | ||||||||||||
Overall | 19.3 | % | 21.9 | % | 26.5 | % | 26.5 | % |
Sales and Marketing
Sales and marketing expenses consist primarily of shipping and handling expenses incurred in delivering products to our customers’ designated locations, advertising, corporate communications and other marketing expenses, salary expenses for sales and marketing personnel, sales commission, professional service fees and service support expenses.
General and Administrative
General and administrative expenses consist of salaries and related expenses for executive, finance and accounting, and management information systems personnel, professional service fees, bad debt provision and other corporate expenses. They also include stock-based compensation that is expensed using the fair value method. See “Item 6. Directors, Senior Management and Employees—Restricted Shares” for more information concerning our plan of restricted shares. We expect general and administrative expenses to increase in absolute terms as we add personnel and incur additional expenses related to the growth of our business and operations.
equipment and gains from lease modifications.
loss and compensation income.
Year ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of revenue | (82.0 | ) | (81.4 | ) | (80.7 | ) | ||||||
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Gross profit | 18.0 | 18.6 | 19.3 | |||||||||
Research and development expenses | (5.5 | ) | (5.1 | ) | (5.0 | ) | ||||||
Sales and marketing expenses | (0.4 | ) | (0.3 | ) | (0.3 | ) | ||||||
General and administrative expenses | (3.6 | ) | (2.6 | ) | (2.4 | ) | ||||||
Other operating income (expenses), net | 3.9 | 0.8 | 0.5 | |||||||||
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Operating profit | 12.4 | 11.4 | 12.1 | |||||||||
Finance costs | (1.2 | ) | (1.0 | ) | (0.9 | ) | ||||||
Share of profit (loss) of associates | (1.0 | ) | (1.6 | ) | (0.8 | ) | ||||||
Gain on disposal of investment in associates | 0.1 | — | 4.8 | |||||||||
Othernon-operating income (expenses), net | (1.8 | ) | 0.9 | (0.4 | ) | |||||||
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Profit before income tax | 8.5 | 9.7 | 14.8 | |||||||||
Income tax expense | (3.0 | ) | (2.5 | ) | (2.5 | ) | ||||||
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Profit from continuing operations | 5.5 | 7.2 | 12.3 | |||||||||
Profit from discontinued operations | 10.1 | — | — | |||||||||
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Profit for the year | 15.6 | % | 7.2 | % | 12.3 | % | ||||||
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Attributable to: | ||||||||||||
Equity holders of the Company—continuing operations | 5.5 | % | 7.2 | % | 12.3 | % | ||||||
Equity holders of the Company—discontinued operations | 10.1 | — | — | |||||||||
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15.6 | % | 7.2 | % | 12.3 | % | |||||||
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indicated, financial data from our consolidated statements of comprehensive income.
Year ended December 31, | ||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||
NT$ | Percentage | NT$ | Percentage | NT$ | US$ | Percentage | ||||||||||||||||||||||
(in millions, except percentage) | ||||||||||||||||||||||||||||
Revenue | $ | 20,337.9 | 100.0 | % | $ | 23,011.4 | 100.0 | % | $ | 27,400.0 | $ | 987.7 | 100.0 | % | ||||||||||||||
Cost of revenue | (16,411.8 | ) | (80.7 | ) | (17,979.2 | ) | (78.1 | ) | (20,146.0 | ) | (726.2 | ) | (73.5 | ) | ||||||||||||||
Gross profit | 3,926.1 | 19.3 | 5,032.2 | 21.9 | 7,254.0 | 261.5 | 26.5 | |||||||||||||||||||||
Operating expenses | (1,561.9 | ) | (7.7 | ) | (1,601.3 | ) | (7.0 | ) | (1,817.2 | ) | (65.5 | ) | (6.7 | ) | ||||||||||||||
Other income (expenses), net | 92.9 | 0.5 | 135.6 | 0.6 | 125.6 | 4.5 | 0.5 | |||||||||||||||||||||
Operating profit | 2,457.1 | 12.1 | 3,566.5 | 15.5 | 5,562.4 | 200.5 | 20.3 | |||||||||||||||||||||
Non-operating income (expenses), net | 565.2 | 2.7 | (593.1 | ) | (2.6 | ) | 473.2 | 17.1 | 1.7 | |||||||||||||||||||
Profit before income tax | 3,022.3 | 14.8 | 2,973.4 | 12.9 | 6,035.6 | 217.6 | 22.0 | |||||||||||||||||||||
Income tax expense | (513.7 | ) | (2.5 | ) | (594.4 | ) | (2.6 | ) | (1,098.3 | ) | (39.6 | ) | (4.0 | ) | ||||||||||||||
Profit for the year | $ | 2,508.6 | 12.3 | % | $ | 2,379.0 | 10.3 | % | $ | 4,937.3 | $ | 178.0 | 18.0 | % | ||||||||||||||
Total comprehensive income for the year | $ | 2,381.3 | 11.7 | % | $ | 2,494.3 | 10.8 | % | $ | 5,021.5 | $ | 181.0 | 18.3 | % | ||||||||||||||
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
Earnings per share—basic | $ | 3.45 | $ | 3.27 | $ | 6.79 | $ | 0.24 | ||||||||
Earnings per share—diluted | 3.40 | 3.23 | 6.65 | 0.24 | ||||||||||||
Earnings per equivalent ADS—basic | 69.00 | 65.42 | 135.78 | 4.89 | ||||||||||||
Earnings per equivalent ADS—diluted | 68.06 | 64.57 | 132.93 | 4.79 | ||||||||||||
Weighted average number of shares outstanding (in million shares): | ||||||||||||||||
Basic | 727.1 | 727.2 | 727.2 | 727.2 | ||||||||||||
Diluted | 737.1 | 736.9 | 742.9 | 742.9 |
2020
2020.
service.
demand and average selling prices for our services.
products and customer demand.
2020.
Our gross profit margin for assembly services increased to 3.3%37.1% in 20192021 from 3.2%33.0% in 2018,2020, primarily due to the increase in revenue resulted from the increased customer demand.
demand and average selling prices for our service.
Our gross profit margin for bumping services increased to 14.6% in 2019 from 3.7% in 2018, primarily due to the increase in revenue resulted from the increased average selling prices for our services.
Research and Development Expenses. Research and development expenses increased by NT$69 million, or 7%, to NT$1,008 million (US$34 million) in 2019 from NT$939 million in 2018, primarily due to the increase of employee benefit expenses.
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Sales and marketing expenses | $ | 56.1 | $ | 57.0 | $ | 73.9 | $ | 2.6 | ||||||||
General and administrative expenses | 498.2 | 528.8 | 604.1 | 21.8 | ||||||||||||
Research and development expenses | 1,007.6 | 1,015.5 | 1,139.2 | 41.1 | ||||||||||||
Total operating expenses | $ | 1,561.9 | $ | 1,601.3 | $ | 1,817.2 | $ | 65.5 | ||||||||
General and Administrative Expenses. General and administrative expenses increased by NT$13 million, or 3%, to NT$498 million (US$17 million) in 2019 from NT$485 million in 2018,2020, primarily due to the increase of employee benefit expenses and facilities
R&D material expenses and utilities expenses.
Finance Costs. Finance costs decreased by NT$10 million, or 5%, to NT$180 million (US$6 million) in 2019 from NT$190 million in 2018. This change was primarily due to the decrease of financial cost of bank loans by NT$29 million (US$1 million)impairment loss on property, plant and equipment and partially offset by the increase of finance costthe income from waste recycling and sale of lease liabilitiesidle assets in 2021.
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Interest income | $ | 64.4 | $ | 27.8 | $ | 10.0 | $ | 0.4 | ||||||||
Other income | 10.7 | 21.2 | 34.5 | 1.2 | ||||||||||||
Other gains and losses | (148.4 | ) | (323.3 | ) | (65.8 | ) | (2.4 | ) | ||||||||
Financial costs | (180.2 | ) | (171.5 | ) | (131.2 | ) | (4.7 | ) | ||||||||
Share of (loss) profit of associates and joint ventures accounted for using equity method | (154.9 | ) | (147.3 | ) | 625.7 | 22.6 | ||||||||||
Gain on disposal of investment accounted for using equity method | 973.6 | — | — | — | ||||||||||||
Total non-operating income (expenses), net | $ | 565.2 | $ | (593.1 | ) | $ | 473.2 | $ | 17.1 | |||||||
Share of Profit (Loss) of Associates. Share of loss of associates decreased by NT$1451,066 million, or 48%180%, to NT$155473 million (US$517 million) in 20192021 from
Gain on Disposal of Investment in Associates. Gain on disposal of investment in associates increased by NT$974 million, or 100%, to NT$974 million (US$3328 million) in 2019 from nil in 2018. The change was due to the disposal of 9,100,000 common shares of JMC.
OtherNon-Operating Income (Expenses), Net. Othernon-operating expenses, net increased by NT$246 million, or 142%, to othernon-operating expenses NT$73 million (US$3 million) in 2019 from othernon-operating income NT$173 million in 2018. This change was primarily due to the increasedand decrease of foreign exchange loss bylosses of NT$248266 million (US$810 million) and interest expense of NT$41 million (US$1 million).
2020.
tax benefits caused by investment deductions in 2021.
2020.
Revenue. Our revenue increased by NT$539 million, or 3%, to NT$18,480 million in 2018 from NT$17,941 million in 2017.
Revenue from testing services for memory and logic/mixed-signal semiconductors decreased by NT$48 million, or 1%, to NT$4,790 million in 2018 from NT$4,838 million in 2017. Revenue from testing services for memory semiconductors increased by NT$17 million, or 1%, to NT$3,988 million in 2018 from NT$3,971 million in 2017, principally due to the increased average selling prices for our services. Revenue for testing services for logic/mixed-signal semiconductors decreased by NT$65 million, or 8%, to NT$802 million in 2018 from NT$867 million in 2017, principally due to the decreased average selling prices for our services.
Revenue from assembly services for memory and logic/mixed-signal semiconductors decreased by NT$580 million, or 11%, to NT$4,679 million in 2018 from NT$5,259 million in 2017. Revenue from assembly services for memory semiconductors decreased by NT$455 million, or 10%, to NT$3,897 million in 2018 from NT$4,352 million in 2017, primarily asFor a resultdetailed description of the decreased average selling prices forcomparison of our services and customer demand. Revenue from assembly services for logic/mixed-signal semiconductors decreased by NT$124 million, or 14%, to NT$783 million in 2018 from NT$907 million in 2017, primarily as a result of the decreased average selling prices for our services and customer demand.
Revenue from LCD, OLED and other display panel driver semiconductor assembly and testing services increased by NT$905 million, or 19%, to NT$5,695 million in 2018 from NT$4,790 million in 2017. This increase was principally as a result of an increase in average selling prices for our services and customer demand for LCD, OLED and other display panel products.
Revenue from bumping services increased by NT$262 million, or 9%, to NT$3,316 million in 2018 from NT$3,054 million in 2017. This increase was principally due to the increased average selling prices for our services and customer demand.
See “— Cost of Revenue and Gross Profit” for more information concerning our assembly and testing capacity utilization rates and the impact on our revenue, gross profit and profitability from any increases or decreases in our capacity utilization rate.
Cost of Revenue and Gross Profit. Cost of revenue increased by NT$346 million, or 2%, to NT$15,050 million in 2018 from NT$14,704 million in 2017, primarily due to the increase of depreciation expenses and reversal of inventory impairment loss of NT$474 million and NT$88 million, respectively, and partially offset by the decrease of direct labor expenses and employee benefit expenses of NT$91 million and NT$101 million, respectively.
Our gross profit increased to NT$3,430 million in 2018 from NT$3,237 million in 2017. Our gross margin was 18.6% in 2018, compared to 18.0% in 2017.
Our gross profit margin for testing services for memory and logic/mixed-signal semiconductors decreased to 33.7% in 2018 from 35.8% in 2017, primarily due to the decrease in revenue resulted from the decreased average selling prices for our services.
Our gross profit margin for assembly services for memory and logic/mixed-signal semiconductors decreased to 3.2% in 2018 from 5.0% in 2017, primarily due to the decrease in revenue resulted from the decreased average selling prices for our services and customer demand.
Our gross profit margin for LCD, OLED and other display panel driver semiconductor assembly and testing services increased to 27.2% in 2018 from 25.5% in 2017, primarily due to the increase in revenue resulted from the increased average selling prices for our services and customer demand.
Our gross profit margin for bumping services increased to 3.7% in 2018 from 0.6% in 2017, primarily due to the increase in revenue resulted from the increased average selling prices for our services and customer demand.
Research and Development Expenses. Research and development expenses decreased by NT$47 million, or 5%, to NT$939 million in 2018 from NT$986 million in 2017, primarily due to the decrease of employee benefit expenses and R&D material expense.
Sales and Marketing Expenses. Sales and marketing expenses decreased by NT$11 million, or 17%, to NT$53 million in 2018 from NT$64 million in 2017, primarily due to the decrease of employee benefit expenses,fright-out expense and commission expense.
General and Administrative Expenses. General and administrative expenses decreased by NT$155 million, or 24%, to NT$485 million in 2018 from NT$640 million in 2017, primarily due to the decrease of employee benefit expenses and professional service fee.
Other Operating Income (Expenses), Net. Other operating income decreased by NT$545 million, or 79%, to NT$148 million in 2018 from NT$693 million in 2017, primarily due to the decrease of insurance compensation income of NT$487 million and gain on disposal of property, plant and equipment of NT$119 million.
Finance Costs. Finance costs decreased by NT$27 million, or 12%, to NT$190 million in 2018 from NT$217 million in 2017. This change was primarily due to the decrease of interest expense from bank loans by NT$38 million and partially offset by the increase of financial cost of bank loans by NT$11 million.
Share of Profit (Loss) of Associates. Share of loss of associates increased by NT$121 million, or 67%, to NT$300 million in 2018 from NT$179 million in 2017. This change was primarily due to the increase of share of loss of associates of Unimos Shanghai by NT$162 million and partially offset by the increase of share of profit of associates of JMC by NT$41 million.
Gain on Disposal of Investment in Associates. Gain on disposal of investment in associates decreased by NT$17 million, which was nil in 2018 from NT$17 million in 2017. The change was primarily due to the accounting treatment for investment in associates as the Company did not participate investee’s capital increase which resulted change in shareholding.
OtherNon-Operating Income (Expenses), Net. Othernon-operating expense decreased by NT$501 million, or 153%, to othernon-operating income of NT$173 million in 2018 from othernon-operating expense of NT$328 million in 2017. This change was primarily due to the decrease of foreign exchange losses by NT$512 million and partially offset by the decrease of reimbursement of ADSs service charge by NT$10 million.
Profit before Income Tax. As a result of the foregoing, profit before income tax increased by 16% to NT$1,782 million in 2018 from NT$1,532 million in 2017.
Income Tax Expense. We had an income tax expense of NT$457 million in 2018 compared to income tax expense of NT$551 million for 2017, primarily due to the decrease of the income tax expense from 10% tax on unappropriated earnings and partially offset by the increase of income tax of profit before tax.
Profit for the Year Attributable to Equity Holders of the Company. As a result of the foregoing operations as well as increase in profit from discontinued operations, the profitresults for the year attributableended December 31, 2020 to the Company was NT$1,326 million in 2018, comparedyear ended December 31, 2019, please refer to NT$2,797 million in 2017.
“Item 5. Operating and Financial Review and Prospects—Results of Operations—Year Ended December 31, 2020 Compared to Year Ended December 31, 2019” of our annual report on Form
Estimates, Judgements or Assumptions
We estimate sales refund liabilities for sale allowance Customer payment on assembly and testing services is based on historical results and other known factors. Provisions for such liabilities are recorded as a deduction to revenuespredetermined payment schedule. A contract asset is recognized when the sales are recognized. We reassess the reasonablenessGroup provides services in excess of estimates of discounts and returns periodically.customer’s payment. As of December 31, 20182020 and 2019,2021, the ending balances for current refund liabilitiesamounts of contract assets recognized were NT$33389 million and NT$26400 million (US$114 million), respectively.
Provisions for deficiency compensation
We are primarily engaged in the research, development, manufacturing, sale, and assembly and testing
As of December 31, 2017, 2018 and 2019, the ending balances for deferred tax liabilities were NT$174 million, NT$309 million and NT$309 million (US$10 million), respectively.
Lease Liabilities
We initially applied the new standard IFRS 16 “Leases” effective as of January 1, 2019. IFRS 16 substantially changed the consolidated financial statements, as the majority of leases for which the Group is the lessee became on the consolidated statements of financial position liabilities with correspondingright-of-use assets also recognized on the consolidated statements of financial position. The lease liability reflects the net present value of the remaining lease payments, and theright-of use asset corresponds to the lease liability, adjusted for payments made before the commencement date.
We implemented the new standard on January 1, 2019, and applied the simplified retrospective method, withright-of-use assets measured at an amount equal to the lease liabilities, adjusted by the amount of the lease obligations payable relating to those leases recognized in the statements of financial position immediately before the date of initial application and will not restate prior years. As of December 31, 2019, the ending balance for lease liabilities was NT$693 million (US$23 million).
Impairment ofNon-Financial Assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow (“DCF”) model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for the extrapolation purposes.
In determining whether any impairment charges were necessary for the property, plant and equipment and othernon-current assets for the year ended December 31, 2019, we assumed that the semiconductor industry will continue its growth in the next few years. Based upon our assumption of growth in the semiconductor industry and our other assumptions in our internal budget, for the purpose of determining whether any impairment charges are necessary for the year ended December 31, 2019, an impairment loss of NT$10 million (US$334 thousand) and nil were recognized with respect to property, plant and equipment and othernon-current assets.
While we believe that our estimates of future cash flows are reasonable, any changes in these estimates based on changed economic conditions or business strategies could result in significant impairment changes in future periods.
Defined Benefit Plans
The cost of the defined benefit pension plan and post-employment benefits and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to change in these assumptions. All assumptions are reviewed at each reporting date. Further details are disclosed in Note 26 to our consolidated financial statements contained in this Annual Report on Form20-F.
policiesestimates, judgements or assumptions described above with the audit committee of our board of directors and the audit committee has reviewed our disclosure relating to the critical accounting policiesestimates, judgements or assumptions in this section.2019,2021, our primary sources of liquidity were cash and cash equivalents of NT$4,7045,906 million (US$157213 million), short-term bank loans of NT$5,9415,277 million (US$199190 million) available to us in undrawn facilities, which have expired or will expire from March 20202022 to November 2020,2022, and long-term bank loans of NT$1,8008,777 million (US$60316 million) available to us in undrawn facilities, which will expire infrom May 2023 to December 2023. We have taken the following steps to meet our liquidity, capital spending and other capital needs.12,000 million12 billion for a term of five years, which was used to repay the existing debt of financial institutions and broaden the Company’s working capital. See “Item 3. Key Information—Risk Factors—Risks Relating to Our Business—Our significant amount of indebtedness and interest expense will limit our cash flow and could adversely affect our operations” for additional information.March 2020November 2021 with the line of credit amounted to NT$12,144 million14.64 billion (US$406528 million) and terms from seven to ten years. As of the issue date of this report, the Company has used NT$3,5849,463 million (US$120341 million) of the credit line. $ 734 $ 734 $ — $ — $ — 9,766 115 2,818 4,568 2,265 1,048 182 120 54 692 2,629 2,629 — — — $ 14,177 $ 3,660 $ 2,938 $ 4,622 $ 2,957 order to adjust capital structure and increase returns of equity, on June 26, 2018, a capital reduction plan (the “2018 Capital Reduction Plan”) was resolved at shareholders’ meeting, under which the Company reduced its share capital by approximately 15%. As a result, approximately 15% of the total number of issued shares was canceled, proportionatelyaddition to the shareholding of each Shareholder. The issued shares of the Company include (i) the issued and outstanding shares not heldcommitments set forth in the ADS deposit facility, approximately 15% of which were canceled, and cash was distributedcontractual obligations table above, we have certain outstanding purchase orders relating to the holdersprocurement of these shares, (ii) the issued and outstanding shares held in the ADS deposit facility, approximately 15%raw materials for which there are no definite delivery dates or deadlines
Year ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Net cash generated from (used in): | ||||||||||||||||
Operating activities | $ | 4,157.3 | $ | 4,129.2 | $ | 5,982.4 | $ | 200.0 | ||||||||
Investing activities | (3,493.4 | ) | (5,129.3 | ) | (4,237.8 | ) | (141.6 | ) | ||||||||
Financing activities | (550.8 | ) | (2,400.4 | ) | (1,677.3 | ) | (56.1 | ) | ||||||||
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Net increase (decrease) in cash and cash equivalents | $ | 113.1 | $ | (3,400.5 | ) | $ | 67.3 | $ | 2.3 | |||||||
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Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Capital expenditures | $ | 4,896.7 | $ | 4,133.6 | $ | 6,552.7 | $ | 236.2 | ||||||||
Depreciation and amortization | 3,731.9 | 4,175.5 | 4,634.1 | 167.1 | ||||||||||||
Net cash generated from (used in): | ||||||||||||||||
Operating activities | $ | 5,982.4 | $ | 5,940.2 | $ | 7,319.7 | $ | 263.9 | ||||||||
Investing activities | (4,237.8 | ) | (3,799.3 | ) | (6,015.4 | ) | (216.9 | ) | ||||||||
Financing activities | (1,677.3 | ) | (2,720.2 | ) | 494.4 | 17.8 | ||||||||||
Effect of exchange rate changes | (5.7 | ) | (11.1 | ) | (6.2 | ) | (0.2 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | $ | 61.6 | $ | (590.4 | ) | $ | 1,792.5 | $ | 64.6 | |||||||
Net cash generated from operating activities totaled NT$4,129 million in 2018, compared to NT$4,157 million in 2017. Net cash generated from operating activities was positively impacted by a profit before income tax of NT$1,782 million with depreciation expenses of NT$3,377 million in 2018 compared to a profit before income tax (including discontinued operations) of NT$3,347 million with depreciation expenses of NT$2,899 million in 2017.2020. The decrease in net cash generated from operating activities was primarily due to an increase of accounts and notes receivableinventory of NT$7341,105 million (US$40 million) in 2021 compared to NT$334 million in 2018 compared to a decrease of accounts and notes receivable of NT$128 million in 2017, a decrease of other payables of NT$302 million in 2018 compared to2020, an increase of other payablesfinancial assets at fair value through profit or loss of NT$439291 million (US$10 million) in 2021 compared to NT$28 million in 2017, the decrease of share-based payments2020 and income tax paid which was NT$41692 million (US$25 million) in 2021 compared to NT$276 million in 2018 compared to NT$123 million in 2017 and a decrease of prepayments of NT$47 million in 2018 compared to a decrease of prepayments of NT$127 million in 2017 and partially offset by the decrease of gain on disposal of a subsidiary which was nil in 2018 compared to NT$1,843 million in 2017, gain on disposal of property, plant and equipment which was NT$14 million in 2018 compared to NT$133 million in 2017, insurance compensation income which was NT$147 thousand in 2018 compared to NT$487 million in 2017, income tax payment which was NT$119 million in 2018 compared to NT$388 million in 2017 and the increase of share of loss of associates which was NT$300 million in 2018 compared to NT$179 million in 2017.
2020.
2020.
Net Cash Used in Financing Activities
Net cash used in financing activities totaled NT$1,677494 million (US$5618 million) in 2019,2021, compared to NT$2,400 million in 2018. The decrease in net cash used in financing activities NT$2,720 million in 2020. The increase in net cash generated from financing activities was primarily the resultnet proceeds from long-term bank loans of the payments on capital reduction which was nilNT$1,652 million (US$60 million) in 2019,2021, compared to the net payment of long-term bank loans of NT$1,2841,327 million in 2018,2020, the net payments ofproceeds from short-term bank loans of NT$732 million (US$26 million) in 2021 compared to the nil in 2019, compared to NT$969 million in 20182020 and partially offset by the cash distribution of NT$8731,600 million (US$2958 million) in 2019,2021, compared to NT$2571,309 million in 2018, net payments2020 and the payment on lease liabilities of long-term bank loans of NT$756290 million (US$2510 million) in 2019,2021, compared to net proceeds of long-term bank loans of NT$11085 million in 2018.
Net cash used in financing activities totaled NT$2,400 million in 2018, compared to net cash used in financing activities totaled NT$551 million in 2017. The increase in net cash used in financing activities was primarily the result2020.
2023, and government granted loan is repayable monthly from March 2023 to November 2031.
On July 2, 2014, we obtained a syndicated loan facility from banks in Taiwan in the amount of NT$10,000 million in a term of five years. This loan facility is secured by existing land and buildings and equipment. This loan facility was fully drawn in 2016 and fully repaid in June 2016.
On May 16, 2016, we obtained a syndicated loan from banks in Taiwan in the amount of NT$13,200 million with a term of five years. This loan facility is secured by existing land and buildings and equipment. This loan facility was drawn of NT$10,800 million and fully repaid in May 2018.
On May 15, 2018, we obtained a syndicated loan from banks in Taiwan in the amount of NT$12,000 million12 billion with a term of five years. This loan facility is secured by existing land and buildings and equipment. As of the date of this Annual Report on Form10,200 million.
2021.
As of December 31, 2019 | ||||||||
NT$ | US$ | |||||||
(in millions) | ||||||||
During 2020 | $ | 748 | $ | 25 | ||||
During 2021 | 755 | 25 | ||||||
During 2022 | 755 | 25 | ||||||
During 2023 | 6,784 | 227 | ||||||
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$ | 9,042 | $ | 302 | |||||
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|
|
|
2021:
As of December 31, 2021 | ||||||||
NT$ | US$ | |||||||
(in millions) | ||||||||
During 2022 | $ | 47 | $ | 2 | ||||
During 2023 | 1,051 | 38 | ||||||
During 2024 | 1,628 | 59 | ||||||
During 2025 | 2,231 | 80 | ||||||
During 2026 and onwards | 4,456 | 160 | ||||||
$ | 9,413 | $ | 339 | |||||
loans in the total amount of NT$732 million (US$26 million), which was due from January 2022 to May 2022.
See
disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
In 2021, tax credits resulted in tax savings for the Company of approximately NT$50 million (US$2 million).
Profit for the year generated by the Company after January 1, 1998, which is not distributed in the year following the year the profit was generated, is subject to additional income tax at the rate of 10%. If that profit for the year is subsequently distributed, the additional income tax previously paid on that income is credited against the amount of withholding tax payable by shareholders, who are not individuals or entities of the Republic of China (for taxation purposes), in connection with the distribution.
Tabular Disclosure of Contractual Obligations and Commercial Commitments
The following table summarizes our contractual obligations and commitments as of December 31, 2019, or the periods indicated:
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Within 1 year | 2-3 years | 4-5 years | Over 5 years | |||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Long-term bank loans(1) | $ | 9,549 | $ | 914 | $ | 1,787 | $ | 6,848 | $ | — | ||||||||||
Lease liabilities(1) | 917 | 37 | 60 | 58 | 762 | |||||||||||||||
Capital commitments | 1,641 | 1,641 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total contractual cash obligations | $ | 12,107 | $ | 2,592 | $ | 1,847 | $ | 6,906 | $ | 762 | ||||||||||
|
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|
|
|
|
|
|
|
Note:
(1) Includes interest payments. Assumes level of relevant interest rates remains at December 31, 2019, level throughout all relevant periods.
In addition to the commitments set forth in the contractual obligations table above, we have certain outstanding purchase orders relating to the procurement of raw materials for which there are no definite delivery dates or deadlines.
Item 6. | Directors, Senior Management and Employees |
The
The term of office for directors is three years.
shareholder.
Name | Age | Position | Term Expires | |||||||
Shih-Jye Cheng | 61 | Chairman and Director/President | 2022 | |||||||
Teresa Wang | 64 | Director (representative, Siliconware Precision) | 2022 | |||||||
Bright Yeh | 53 | Director (representative, Siliconware Precision) | 2022 | |||||||
Lafair Cho | 58 | Director/Senior Executive Vice President/Chief Operating Officer | 2022 | |||||||
Chin-Shyh Ou | 62 | Independent Director | 2022 | |||||||
Yuh-Fong Tang | 65 | Independent Director | 2022 | |||||||
Tai-Haur Kuo | 60 | Independent Director | 2022 | |||||||
Kuei-Ann Wen | 59 | Independent Director | 2022 | |||||||
Jing-Shan Aur | 71 | Independent Director | 2022 | |||||||
Silvia Su | 49 | Vice President, Finance and Accounting Management Center | — |
Name | Age | Position | Term Expires | |||||||
Shih-Jye Cheng | 63 | Chairman and Director / President | 2024 | |||||||
Kun-Yi Chien | 66 | Director (representative, Siliconware Precision) | 2024 | |||||||
Bright Yeh | 55 | Director (representative, Siliconware Precision) | 2024 | |||||||
Silvia Su | 51 | Director / Vice President, Finance and Accounting Management Center / Corporate Governance Officer | 2024 | |||||||
Chin-Shyh Ou | 64 | Independent Director | 2024 | |||||||
Kuei-Ann Wen | 61 | Independent Director | 2024 | |||||||
Hui-Fen Chan | 53 | Independent Director | 2024 | |||||||
Yeong-Her Wang | 65 | Independent Director | 2024 | |||||||
Hong-Tzer Yang | 61 | Independent Director | 2024 | |||||||
Vincent Hsu | 53 | Executive Vice President | — | |||||||
D.Y. Tsai | 51 | Executive Vice President | — |
Teresa Wang has been our director since June 2019. Ms. Wang is a director
April 1983 to June 1989. He graduated from Tunghai University with an EMBA.
Lafair Cho
the University of Leeds.
Yuh-Fong Tang has served as one of our directors since June 2013. Mr. Tang has served as the independent director of OPNET Technologies Co., Ltd. since June 2015Auditor and the consultant of Intelligent Silicon Solution Corporation since February 2018. He was the chairman and chief executive officer of Myson Century, Inc. from June 2012 to January 2018, the chairman of ZAVIO Inc. from December 2015 to January 2018, the chairman of compensation committee of Carnival Industrial Corporation from February 2012 to June 2017. He was the vice chairman of Pack-Link Management Corp. from August 2000 to 2007, the independent director of Yulon IT Solutions Inc. from 2007 to May 2013 and the Supervisor of TrueLight Corp. from January 2009 to November 2010. Mr. Tang holds a Ph.D. degree in Electrical Engineering from University of Illinois, USA.
Tai-Haur Kuo has served as one of our directors since June 2013. Mr. Kuo has been a professor of the department of Electrical Engineering at National Cheng Kung University since August 1992. He has served as the independent director, audit committee member and compensation committee member of Holtek Semiconductor Inc. since May 2016, June 2016 and June 2016. He was the director of ZillTek Technology from 2016 to March 2018. He holds a Ph.D. degree in Electrical Engineering from University of Maryland, USA.
the department of Electronic Engineering and Institute of Electronics, since February 2002, the chief executive officer in strategic development office since August 2012,of Social Responsibility Development Office and the vice deanprofessor of International College of Semiconductor Technology at National Yang Ming Chiao Tung University since February 2002, August 2016.2012 and August 2016, respectively. She also has served as the independent director, audit committee member and compensation committee member of Xintec Inc. since June 2016. Ms. Wen was the associate dean in theof Office of Research and Development at National Chiao Tung University from 2011 to 2016 and she also was the associate dean of College of Electrical and Computer Engineering at National Chiao Tung University. She holds a Ph.D. degree from Institute of Electrical Engineering at National Cheng Kung University.
Jing-Shan Aur has been our director since June 2019. He also severed as served as compensation committee member in Siliconware Precision since June 2018 and he has been the director of Siliconware Precision from June 2005 to June 2014. Mr. Aur has been the director of RSEA Engineering Corp. since October 2009. He was previously the chairman of APTOS (Taiwan) Corp. and the managing director in United Microelectronics Corp. from May 1998 to July 2001. He was the supervisor of Unimicron Technology Corp. from April 1996 to July 2001 and also has been the president of Unimicron Technology Corp. He received a Bachelor’s degree in National Taiwan Ocean University.
Silvia Su
in Taiwan.
Name | Number of Common Shares Held | Percentage of Shares Issued | ||||||
Shih-Jye Cheng | 6,150,161 | 0.85 | % | |||||
Teresa Wang (representative, Siliconware Precision) | 148,910,390 | 20.48 | % | |||||
Bright Yeh (representative, Siliconware Precision) | 148,910,390 | 20.48 | % | |||||
Lafair Cho | 101,990 | 0.01 | % | |||||
Chin-Shyh Ou | — | — | ||||||
Yuh-Fong Tang | — | — | ||||||
Tai-Haur Kuo | — | — | ||||||
Kuei-Ann Wen | — | — | ||||||
Jing-Shan Aur | 261,123 | 0.04 | % | |||||
Silvia Su | 96,041 | 0.01 | % |
Name | Number of Common Shares Held | Percentage of Shares Issued | ||||||
Shih-Jye Cheng | 6,150,161 | 0.85 | % | |||||
Kun-Yi Chien (representative, Siliconware Precision) | 78,910,390 | 10.85 | % | |||||
Bright Yeh (representative, Siliconware Precision) | 78,910,390 | 10.85 | % | |||||
Silvia Su | 340,101 | 0.05 | % | |||||
Chin-Shyh Ou | — | — | ||||||
Kuei-Ann Wen | — | — | ||||||
Hui-Fen Chan | — | — | ||||||
Yeong-Her Wang | — | — | ||||||
Hong-Tzer Yang | — | — | ||||||
Vincent Hsu | 220,130 | 0.03 | % | |||||
D.Y. Tsai | 262,572 | 0.04 | % |
As of December 31, | As of March 31, | |||||||||||||||
Function | 2017 | 2018 | 2019 | 2020 | ||||||||||||
General operations | 3,003 | 3,160 | 2,958 | 2,878 | ||||||||||||
Quality control | 352 | 342 | 285 | 280 | ||||||||||||
Engineering | 1,332 | 1,445 | 1,403 | 1,379 | ||||||||||||
Research and development | 665 | 669 | 645 | 645 | ||||||||||||
Sales, administration and finance | 143 | 138 | 133 | 138 | ||||||||||||
Others | 310 | 251 | 268 | 232 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 5,805 | 6,005 | 5,692 | 5,552 | ||||||||||||
|
|
|
|
|
|
|
|
As of December 31, | As of March 31, | |||||||||||||||
Function | 2019 | 2020 | 2021 | 2022 | ||||||||||||
General operations | 2,958 | 2,891 | 2,995 | 2,941 | ||||||||||||
Quality control | 285 | 185 | 55 | 53 | ||||||||||||
Engineering | 1,403 | 1,352 | 1,436 | 1,414 | ||||||||||||
Research and development | 645 | 671 | 680 | 661 | ||||||||||||
Sales, administration and finance | 133 | 132 | 132 | 140 | ||||||||||||
Others | 268 | 241 | 230 | 240 | ||||||||||||
Total | 5,692 | 5,472 | 5,528 | 5,449 | ||||||||||||
As of December 31, | As of March 31, | |||||||||||||||
Location | 2017 | 2018 | 2019 | 2020 | ||||||||||||
Hsinchu Production Group | 2,230 | 2,250 | 2,139 | 2,104 | ||||||||||||
Southern Taiwan Production Group | 3,571 | 3,751 | 3,549 | 3,441 | ||||||||||||
Shanghai | — | — | — | 3 | ||||||||||||
United States | 4 | 4 | 4 | 4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 5,805 | 6,005 | 5,692 | 5,552 | ||||||||||||
|
|
|
|
|
|
|
|
As of December 31, | As of March 31, | |||||||||||||||
Location | 2019 | 2020 | 2021 | 2022 | ||||||||||||
Hsinchu Production Group | 2,139 | 2,116 | 2,158 | 2,126 | ||||||||||||
Southern Taiwan Production Group | 3,549 | 3,349 | 3,363 | 3,316 | ||||||||||||
Shanghai | — | 3 | 3 | 3 | ||||||||||||
United States | 4 | 4 | 4 | 4 | ||||||||||||
Total | 5,692 | 5,472 | 5,528 | 5,449 | ||||||||||||
Restricted Shares
On November 12, 2014, the board of directors of the Company approved 2014 Restricted Stock Award Agreement which has 17,300,000 restricted shares available for issuance. The par value and granting price of the restricted shares were NT$10 and zero, respectively. The issuance of the restricted shares was approved by the Special General Meeting of the Shareholders’ of the Company on December 30, 2014 and approved by the Financial Supervisory Commission of ROC on June 30, 2015. Under the Restricted Stock Award Agreement, the restricted shares will be issued to the employees determined by the board. The restricted shares received will be vested on the vesting ratio when the determined employees accomplish the required years of services and performance conditions. The restricted shares are not restricted for the dividend distribution. The employees are required to return the received restricted shares but not the dividends received if they resign during the vesting period. The returned restricted shares will be retired and cancelled. In 2017, 695,200 restricted shares were forfeited. In 2018, 371,977 restricted shares were forfeited. In 2019, 24,671 restricted shares were forfeited.
Item 7. | Major Shareholders and Related Party Transactions |
June 19, 2017 | April 12, 2019 | April 11, 2020(1) | ||||||||||||||||||||||
Name of Beneficial Owners | Numbers of Shares Owned | Percentage of Shares Owned | Numbers of Shares Owned | Percentage of Shares Owned | Numbers of Shares Owned | Percentage of Shares Owned | ||||||||||||||||||
Siliconware Precision Industries Co., Ltd | 156,045,540 | 18.22% | 148,910,390 | 20.12% | 148,910,390 | 20.48% | ||||||||||||||||||
Depositary(2) | 302,785,500 | 35.36% | 99,507,534 | 13.45% | 94,534,754 | 13.00% | ||||||||||||||||||
Citibank (Taiwan) in its capacity as Master Custodian for Investment Account of GIC Pte Ltd. (Singapore) | 39,371,000 | 4.43% | 22,225,661 | 3.00% | 20,400,313 | 2.81% | ||||||||||||||||||
Fubon Life Insurance Co., Ltd. | 16,100,000 | 1.82% | 13,683,762 | 1.85% | 13,683,762 | 1.88% | ||||||||||||||||||
Norges Bank | * | * | 9,088,840 | 1.23% | 12,955,840 | 1.78% | ||||||||||||||||||
JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds | * | * | 9,594,464 | 1.30% | 11,102,348 | 1.53% | ||||||||||||||||||
Morgan Stanley & Co. International Plc | * | * | 17,759,559 | 2.40% | 9,144,979 | 1.26% | ||||||||||||||||||
Vanguard Emerging Markets Stock Index Fund, a series of Vanguard International Equity Index Funds | * | * | * | * | 8,330,568 | 1.15% | ||||||||||||||||||
Goldman Sachs Funds—Goldman Sachs Emerging Markets CORE(R) Equity Portfolio | * | * | * | * | 6,493,000 | 0.89% | ||||||||||||||||||
Hao Hsiang Investment Co., Ltd. | * | * | * | * | 6,244,777 | 0.86% | ||||||||||||||||||
Directors and executive officers, as a group(3) | 9,691,200 | (4) | 1.09% | (4) | 15,748,054 | (5) | 2.08% | (5) | 155,519,705 | (6) | 21.39% | (6) |
April 11, 2020 | April 2, 2021 | March 28, 2022 (1) | ||||||||||||||||||||||
Name of Beneficial Owners | Numbers of Shares Owned | Percentage of Shares Owned | Numbers of Shares Owned | Percentage of Shares Owned | Numbers of Shares Owned | Percentage of Shares Owned | ||||||||||||||||||
Depositary (2) | 94,534,754 | 13.00% | 84,417,014 | 11.61% | 88,642,054 | 12.19% | ||||||||||||||||||
Siliconware Precision Industries Co., Ltd. | 148,910,390 | 20.48% | 78,910,390 | 10.85% | 78,910,390 | 10.85% | ||||||||||||||||||
Yann Yuan Investment Co., Ltd. | * | * | 55,000,000 | 7.56% | 41,200,000 | 5.67% | ||||||||||||||||||
Chunghwa Post Co., Ltd. | * | * | * | * | 13,663,000 | 1.88% | ||||||||||||||||||
Mitsubishi Ufj Morgan Stanley Securities Co., Ltd.—Equity Trading Division (Proprietary Trading Desk) For Tri—Party Sbl Trading | * | * | * | * | 12,218,000 | 1.68% | ||||||||||||||||||
Vanguard Emerging Markets Stock Index Fund, a series of Vanguard International Equity Index Funds | 8,330,568 | 1.15% | 8,352,148 | 1.15% | 8,305,148 | 1.14% | ||||||||||||||||||
JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds | 11,102,348 | 1.53% | 8,685,348 | 1.19% | 7,682,348 | 1.06% | ||||||||||||||||||
Ensign Peak Advisors, Inc. | * | * | * | * | 6,856,347 | 0.94% | ||||||||||||||||||
Norges Bank | 12,955,840 | 1.78% | 8,512,840 | 1.17% | 6,765,840 | 0.93% | ||||||||||||||||||
Acadian Emerging Markets Small Cap Equity Fund LLC | * | * | * | * | 6,579,649 | 0.90% | ||||||||||||||||||
Directors and executive officers, as a group (3) | 155,519,705 | (4) | 21.39% | (4) | 86,246,467 | (5) | 11.87% | (5) | 85,883,354 | (6) | 11.82% | (6) |
* | Was not one of the largest ten shareholders of the Company as of the applicable record date. |
(1) | Our most recent record date. |
(2) | As record owner of our ADSs. With effect from October 31, 2016, Citibank, N.A. acts as the depositary. |
(3) | Calculated as the sum of: (a) with respect to directors and executive officers who are serving in their personal capacity, the number of shares held by such directors and executive officers and (b) with respect to directors who are serving in the capacity as legal representatives, the number of shares owned by such institutional or corporate shareholder for which director is a legal representative. |
(4) |
|
|
As of March 31, 2020. |
(5) | As of March 31, 2021. |
(6) | As of March 31, 2022. |
On May 11, 2020, one of the strategic investor sold and transferred all equity interests of Unimos Shanghai to Yangtze Memory, which holds 50.94% equity interests of Unimos Shanghai after completed transaction.
Item 8. | Financial Information |
F-69.
Cash Distributions per Share | Stock Dividends per Share | Total Shares Issued as Stock Dividends | Outstanding Common Shares at Year End | |||||||||||||
(NT$) | (NT$) | |||||||||||||||
2017 | 1.00 | — | — | 856,059,061 | ||||||||||||
2018 | 0.30 | — | — | 727,264,797 | ||||||||||||
2019 | 1.20 | — | — | 727,240,126 |
Cash Distributions per Share | Stock Dividends per Share | Total Shares Issued as Stock Dividends | Outstanding Common Shares at Year End | |||||||||||||
(NT$) | (NT$) | |||||||||||||||
2019 | 1.20 | — | — | 727,240,126 | ||||||||||||
2020 | 1.80 | — | — | 727,240,126 | ||||||||||||
2021 | 2.20 | — | — | 727,240,126 |
Item 9. | The Offer and Listing |
Item 10. | Additional Information |
According to the regulations of the FSC, we are required to publish our annual and quarterly financial statements on a consolidated basis. In addition, the ROC Securities and Exchange Act requests a public company, such as us, publicly announces its audited annual financial report within three months after the close of each fiscal year.
On May 16 2016, the Company entered into the Syndicated Loan Agreement with Land Bank of Taiwan Co., Ltd., Bank of Taiwan Co., Ltd. and Taiwan Cooperative Bank Co., Ltd. to obtain a syndicated loan facility in the amount of NT$13.2 billion separated into two parts with term of five years. This loan facility was used to refinance the existing bank debts and for general corporate purposes.
|
On September 30, 2003, the ROC Executive Yuan approved an amendment to Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals, or the Regulations, which took effect on October 2, 2003. According to the Regulations, the ROC Financial Supervisory Commission (the “ROC FSC”) abolished the mechanism of the “qualified
(i) | stock dividends; |
(ii) | free distributions of shares; |
(iii) | due to the exercise by the depositary receipt holder preemptive rights in the event of capital increases for cash; or |
(iv) | if permitted under the deposit agreement and custody agreement and within the amount of depositary receipts which have been withdrawn, due to the direct purchase by investors or purchase through the depositary on the TWSE or Taipei Exchange or delivery by investors of the shares for deposit in the depositary receipt facility. In this event, the total number of depositary receipts outstanding after an issuance cannot exceed the number of issued depositary receipts previously approved by the FSC in connection with the offering plus and ADSs issued pursuant to the events described in (i), (ii) and (iii) above. |
tax-exempt organizations;
U.S. Holders who are individuals (and under proposed regulations, certain entities) and who own “specified foreign financial assets” with an aggregate value in excess of $50,000 on the last day of the tax year (or more than $75,000 at any time during the tax year) are generally required to file an information statement along with their tax returns, currently on IRS Form 8938, with respect to such assets.assets, subject to certain exceptions (including an exception for shares held in custodial accounts maintained with a U.S. financial institution). “Specified foreign financial assets” include securities issued by a
Item 11. | Quantitative and Qualitative Disclosure about Market Risk |
2021.
Item 12. | Description of Securities Other Than Equity Securities |
Service | Fees | |
(1) Issuance of ADSs (i.e., an issuance upon a deposit of Shares or upon a change in the ADS(s)-to-Share(s) | Up to US$5.00 per 100 ADS (or fraction thereof) issued. | |
(2) Cancellation of ADSs (i.e., a cancellation of ADSs for delivery of deposited Shares or upon a change in the ADS(s)-to-Share(s) | Up to US$5.00 per 100 ADS (or fraction thereof) cancelled. | |
(3) Distribution of cash dividends or other cash distributions (i.e., upon a sale of rights and other entitlements). | Up to US$5.00 per 100 ADS (or fraction thereof) held. | |
(4) Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, or (ii) an exercise of rights to purchase additional ADSs. | Up to US$5.00 per 100 ADS (or fraction thereof) held. | |
(5) Distribution of securities other than ADSs or rights to purchase additional ADSs (i.e., spin-off shares). | Up to US$5.00 per 100 ADS (or fraction thereof) held. | |
(6) ADS Services. | Up to US$5.00 per 100 ADS (or fraction thereof) held on the applicable record date(s) established by the Depositary. |
(i)
(ii) | such registration fees as may from time to time be in effect for the registration of Shares or other Deposited Securities on the share register and applicable to transfers of Shares or other Deposited Securities to or from the name of the Custodian, the Depositary or any nominees upon the making of deposits and withdrawals, respectively; |
(iii) | such cable, telex and facsimile transmission and delivery expenses as are expressly provided in the Deposit Agreement to be at the expense of the person depositing Shares or withdrawing Deposited Securities or of the Holders and Beneficial Owners of ADSs; |
(iv) | the expenses and charges incurred by the Depositary in the conversion of foreign currency; |
(v) | such fees and expenses as are incurred by the Depositary in connection with compliance with exchange control regulations and other regulatory requirements applicable to Shares, Deposited Securities, ADSs and ADRs; and |
(vi) | the fees and expenses incurred by the Depositary, the Custodian, or any nominee in connection with the servicing or delivery of Deposited Property. |
Item | US$ (in thousand) | |||
Reimbursement of Proxy Process Expenses | ||||
| ||||
| ||||
Reimbursement of ADR holders identification expenses | ||||
Direct reimbursement to issuer | ||||
Total Payments (1) | ||||
(1) | Net of U.S. withholding tax. |
Item 13. | Defaults, Dividend, Arrearages and Delinquencies |
Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. | Controls and Procedures |
2021. 2021.2019.Overover Financial Reporting. Management’s Annual Report on Internal Control Over Financial Reporting is set forth below.Management’s Report on Internal Control Over Financial ReportingApril 23, 202020192021 based on the criteria set forth in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the assessment, our management concludes that our internal control over financial reporting was effective as of December 31, 2019.20192021 has been audited by PricewaterhouseCoopers, Taiwan, an independent registered public accounting firm, as stated in their report included in this Annual Report on Form/s/Shih-Jye Cheng/s/ Silvia SuName:Shih-Jye ChengName:Silvia SuTitle:Chairman and PresidentTitle:Vice President, Finance and Accounting Management CenterOverover Financial Reporting.2019,2021, there have been no changes in our internal control over financial reporting that may materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 16A. | Audit Committee Financial Expert |
Item 16B. | Code of Ethics |
Item 16C. | Principal Accountant Fees and Services |
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
(In thousands) | ||||||||
Audit Fees | $ | 15,950 | $ | 16,400 | ||||
Audit Related Fees | 200 | 200 | ||||||
Tax Fees | 3,630 | 2,900 | ||||||
|
|
|
| |||||
Total | $ | 19,780 | $ | 19,500 | ||||
|
|
|
|
2021.
2020 | 2021 | |||||||
NT$ | NT$ | |||||||
(In thousands) | ||||||||
Audit Fees | $ | 16,400 | $ | 16,400 | ||||
Audit Related Fees | 200 | 200 | ||||||
Tax Fees | 2,900 | 2,900 | ||||||
Total | $ | 19,500 | $ | 19,500 | ||||
review.
Item 16D. | Exemptions from the Listing Standards for Audit Committees |
Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Repurchase Programs.
On August 10, 2015, the board of directors adopted on a share repurchase program to repurchase up to 20.0 million of our shares through open market transactions at a price no more than NT$41.34 per share during the period from August 11, 2015 to October 10, 2015. On September 18, 2015, we completed this share repurchase program under which we repurchased 20.0 million shares for approximately NT$634 million. The repurchased shares were cancelled. On August 10, 2015, the Company’s Board of Directors approved the cancellation of treasury stock. (Repurchase Program I)
On February 4, 2016, the board of directors adopted on a share repurchase program to repurchase up to 15.0 million of our shares through open market transactions at a price no more than NT$40.00 per share during the period from February 5, 2016 to April 4, 2016. The purpose for the above share repurchase is to boost the morale of the employees and therefore such repurchased shares will be transferred to the employees of the Company. On April 1, 2016, we completed this share repurchase program under which we repurchased 15.0 million shares for approximately NT$511 million. The repurchased shares were cancelled. On March 7, 2019, the Company’s Board of Directors approved the cancellation of treasury stock. (Repurchase Program II)
On May 12, 2016, the board of directors adopted on a share repurchase program to repurchase up to 15.0 million of our shares through open market transactions at a price no more than NT$40.00 per share during the period from May 13, 2016 to July 12, 2016. The purpose for the above share repurchase is to boost the morale of the employees and therefore such repurchased shares will be transferred to the employees of the Company. On July 1, 2016, we completed this share repurchase program under which we repurchased 15.0 million shares for approximately NT$494 million. The repurchased shares were cancelled. On August 6, 2019, the Company’s Board of Directors approved the cancellation of treasury stock. (Repurchase Program III)
Other repurchases.
On September 14, 2016, we repurchased 85 thousand shares from our dissenting shareholders in accordance with the Merger of the Company and ChipMOS Bermuda which was effective on October 31, 2016. The repurchased shares were cancelled. On August 6, 2019, the Company’s Board of Directors approved the cancellation of treasury stock.
The table sets forth certain information about the purchase of our common shares by the Issuer’s repurchase programs in the periods indicated.
Purchases of Equity Securities by the Issuer
Period | Total Number of Shares Purchased | Average Price Paid Per Share (NT$) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (NT$ Million) | ||||||||||||
August – September, 2015 (Repurchase Program I) | ||||||||||||||||
August 2015 | 10,083,000 | |||||||||||||||
September 2015 | 9,917,000 | |||||||||||||||
20,000,000 | 31.69 | 20,000,000 | None | |||||||||||||
February – April, 2016 (Repurchase Program II) | ||||||||||||||||
February 2016 | 3,990,000 | |||||||||||||||
March 2016 | 10,556,000 | |||||||||||||||
April 2016 | 454,000 | |||||||||||||||
15,000,000 | 34.05 | 15,000,000 | None | |||||||||||||
May – July, 2016 (Repurchase Program III) | ||||||||||||||||
May 2016 | 5,184,000 | |||||||||||||||
June 2016 | 9,371,000 | |||||||||||||||
July 2016 | 445,000 | |||||||||||||||
15,000,000 | 32.95 | 15,000,000 | None | |||||||||||||
September 2016 (Other Repurchase)(1) | ||||||||||||||||
September 2016 | 85,000 | |||||||||||||||
85,000 | 31.10 | Not Applicable | ||||||||||||||
|
|
|
| |||||||||||||
Total | 50,085,000 | 50,000,000 | ||||||||||||||
|
|
|
|
Note:
|
Item 16F. | Change in Registrant’s Certifying Accountant |
Item 16G. | Corporate Governance |
NASDAQ Listing Rule | Corporate Governance Practice To Be Followed by Domestic Companies | Our Corporate Governance Practice | ||
5250(b)(3) | Disclosure of third party director and nominee compensation requirements. | We follow governance practices under the ROC law. NASDAQ Rule 5250(b)(3) generally requires a NASDAQ-listed company to disclose at least annually material terms of agreements and arrangements with third parties (other than the company) relating to compensation of or payment to the company’s directors in connection with candidacy or service as a company director, subject to certain limited exceptions. There is no similar regulation requiring disclosure of third party compensation of directors and nominees for director under the ROC law. However, certain laws and regulations are designed to enhance transparency by making investors aware of the relationship between independent directors or nominees for independent director of a TWSE-listed company and third party. For instance, the ROC Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies requires that, in the event that both of a TWSE-listed company and its group enterprises, and another company and its group enterprises, nominate any director, supervisor or managerial officer from the other company or its group enterprises as an independent director candidate, the TWSE-listed company shall disclose the information when receiving the nomination of an independent director candidate, and explain the competence of the independent director candidate. It further requires that, if the candidate becomes the TWSE-listed company’s independent director through election, such company shall disclose the number of votes cast in favor of such independent director-elect. In addition, if an independent director of a TWSE-listed company concurrently serves as a director, supervisor or other position of other company, such concurrently held position shall be disclosed in the Market Observation Post System of the TWSE. | ||
5605(b) | Requires a majority independent board and an independent director executive session. | We follow governance practices under the ROC law. We have five independent directors out of a total of nine directors on our board. Our standards in determining director independence substantially comply with the NASDAQ requirement, which include detailed tests for determining director independence. | ||
5605(c)(1) | Audit committee charter requirements. | We follow governance practices under the ROC law. | ||
5605(c)(2)(A)(ii) | Audit committee composition and independence requirements. | We follow the same NASDAQ listing rule governance practice as followed by domestic companies. |
NASDAQ Listing Rule | Corporate Governance Practice To Be Followed by Domestic Companies | Our Corporate Governance Practice | ||
5605(c)(2)(A)(i), (iii), (iv) | Audit committee financial sophistication requirements. | We follow the same NASDAQ listing rule governance practice as followed by domestic companies. | ||
5605(c)(3) | Audit committee responsibilities and authority requirements. | We follow the same NASDAQ listing rule governance practice as followed by domestic companies. |
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| ||
5605(d), (e) | Requires independent director oversight of executive officer compensation and director nominations. | We follow the same NASDAQ listing rule governance practice regarding the compensation committee as followed by domestic companies. As for the director nominations, we follow governance practices under the ROC law. Under the ROC Company Act and the interpretations thereof, candidates to serve as directors are nominated either by the board of directors or by the shareholders. | ||
5610 | Requires a code of conduct for directors, officers and employees. | We follow governance practices under the ROC law. We have adopted the Code of Ethics and Business Conduct that satisfies the requirements promulgated by the TWSE, and applies to all employees, managerial officers and directors of our company. The details of the waiver of such Code for our directors and managerial officers will be disclosed in the Market Observation Post System of the TWSE. | ||
5620 | Annual shareholder meeting requirements. | We follow governance practices under the ROC law. We are required by the ROC Company Act and our articles of incorporation to hold a general meeting of our shareholders within six months following the end of each fiscal year, unless for specific legitimate reasons or approved otherwise by the relevant authorities. Further, a majority of the holders of all issued and outstanding common shares present at a shareholders’ meeting constitutes a quorum for meetings of our shareholders. | ||
5625 | Requires an issuer to notify NASDAQ of any material noncompliance with the Rule 5600 series. | We follow the same NASDAQ listing rule governance practice as followed by domestic companies. | ||
5630 | Requires oversight of related party transactions. | We follow governance practices under the ROC law. According to NASDAQ Rule 5630(a), each company that is not a limited partnership shall conduct an appropriate review and oversight of all related party transactions for potential conflict of interest situations on an ongoing basis by the company’s audit committee or another independent body of the board of directors. According to our Procedures for Acquisition or Disposal of Assets that satisfies the requirements promulgated by the FSC, any related party transaction exceeding a specified threshold shall be required to have an independent expert issue a fairness opinion, and be submitted to our audit committee for its review and approval. |
NASDAQ Listing Rule | Corporate Governance Practice To Be Followed by Domestic Companies | Our Corporate Governance Practice | ||
5635 | Circumstances that require shareholder approval. | We follow governance practices under the ROC law. According to NASDAQ Rule 5635(c), each issuer shall require shareholder approval when a stock option or purchase plan is to be established or materially amended or other equity compensation arrangement made or materially amended, pursuant to which stock may be acquired by officers, directors, employees, or consultants. However, under the corresponding domestic requirements under the ROC Company Act and the Securities and Exchange Act, the board of directors has authority, subject to the approval of the Securities and Futures Bureau of the FSC, to approve employee stock option plans and to grant options to employees pursuant to such plans. | ||
5640 | Shareholder voting rights requirements. | We follow the same NASDAQ listing rule governance practice as followed by domestic companies. |
Item 16H. | Mine Safety Disclosure |
Item 16I. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 17. | Financial Statements |
Item 18. | Financial Statements |
Item 19. | Exhibits |
Exhibits | Description | |
4.7 | Equity Interest Transfer Agreement, dated November 30, 2016, between ChipMOS TECHNOLOGIES (BVI) LTD. andShih-Jye Cheng (English Translation) |
| |||
101.INS | Inline XBRL Instance | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
(1) | Incorporated by reference to our Registration Statement on Form F-4 (FileNo. 333-209733), filed on February 26, 2016. |
(2) | Incorporated by reference to our Registration Statement on Form F-6/Amendment No. 1 (FileNo. 333-209736), filed on June 21, 2016. |
(3) | Incorporated by reference to the Annual Report on Form 20-F |
|
Incorporated by reference to the Annual Report on Form 20-F (FileNo. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 19, 2018. |
Incorporated by reference to the Annual Report on Form 20-F (FileNo. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 25, 2019. |
(6) | Incorporated by reference to the Annual Report on Form 20-F (FileNo. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 23, 2020. |
(7) | Incorporated by reference to the Annual Report on Form 20-F (FileNo. 001-37928) of ChipMOS TECHNOLOGIES INC., filed on April 20, 2021. |
ChipMOS TECHNOLOGIES INC. | ||
By: | /s/ Shih-Jye Cheng | |
Name: | Shih-Jye Cheng | |
Title: | Chairman and President |
Page(s) | |||||||
F-2 – | |||||||
F-5 – F-6 | |||||||
Change in Accounting Principles
As discussed in Notes 2, 39 and 40 to the consolidated financial statements, the Company changed the manner in which it accounts for leases in 2019 and the manner in which it accounts for financial instruments and revenue from contracts with customers in 2018.
/s/ PricewaterhouseCoopers, Taiwan
Taipei, Taiwan
Republic
April 23, 2020
the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the
/s/ PricewaterhouseCoopers, Taiwan |
Taipei, Taiwan |
Republic of China |
April 14, 2022 |
Years Ended Financial Position
Notes | 2017 | 2018 | 2019 | 2019 | ||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||
Revenue | 4 | 17,940,855 | 18,480,027 | 20,337,881 | 679,969 | |||||||||||||
Cost of revenue | 5,17 | (14,703,729 | ) | (15,050,032 | ) | (16,411,742 | ) | (548,704 | ) | |||||||||
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|
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|
|
| |||||||||||
Gross profit | 3,237,126 | 3,429,995 | 3,926,139 | 131,265 | ||||||||||||||
Research and development expenses | 5 | (985,873 | ) | (939,269 | ) | (1,007,631 | ) | (33,689 | ) | |||||||||
Sales and marketing expenses | 5 | (64,397 | ) | (53,451 | ) | (56,076 | ) | (1,875 | ) | |||||||||
General and administrative expenses | 5 | (639,809 | ) | (485,068 | ) | (498,241 | ) | (16,658 | ) | |||||||||
Other operating income (expenses), net | 6 | 692,834 | 147,514 | 92,928 | 3,107 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Operating profit | 4 | 2,239,881 | 2,099,721 | 2,457,119 | 82,150 | |||||||||||||
Finance costs | 7 | (217,283 | ) | (190,248 | ) | (180,262 | ) | (6,027 | ) | |||||||||
Share of loss of associates | 4 | (179,491 | ) | (300,101 | ) | (154,926 | ) | (5,179 | ) | |||||||||
Gain on disposal of investment in associates | 13 | 16,929 | — | 973,609 | 32,551 | |||||||||||||
Othernon-operating income (expenses), net | 8 | (327,620 | ) | 173,070 | (73,287 | ) | (2,450 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Profit before income tax | 1,532,416 | 1,782,442 | 3,022,253 | 101,045 | ||||||||||||||
Income tax expense | 9 | (550,487 | ) | (456,618 | ) | (513,679 | ) | (17,174 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||||
Profit from continuing operations | 981,929 | 1,325,824 | 2,508,574 | 83,871 | ||||||||||||||
Profit from discontinued operations | 20 | 1,814,953 | — | — | — | |||||||||||||
|
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|
|
|
| |||||||||||
Profit for the year | 2,796,882 | 1,325,824 | 2,508,574 | 83,871 | ||||||||||||||
|
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|
|
|
|
|
| |||||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods: | ||||||||||||||||||
Exchange differences on translation of foreign operations | (232,652 | ) | (51,077 | ) | (104,198 | ) | (3,484 | ) | ||||||||||
Share of other comprehensive income of associates that will be reclassified to profit or loss | 678 | — | — | — | ||||||||||||||
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| |||||||||||
Net other comprehensive loss that will be reclassified to profit or loss in subsequent periods | (231,974 | ) | (51,077 | ) | (104,198 | ) | (3,484 | ) | ||||||||||
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| |||||||||||
Other comprehensive income (loss) that will not be reclassified to profit or loss in subsequent periods: | ||||||||||||||||||
Other comprehensive income (loss) on remeasurements of defined benefit plans | 26 | 50,838 | (59,961 | ) | 20,916 | 699 | ||||||||||||
Unrealized gain (loss) on valuation of equity instruments at fair value through other comprehensive income | 12 | — | 85,022 | (52,549 | ) | (1,757 | ) | |||||||||||
Share of other comprehensive loss of associates that will not be reclassified to profit or loss | (124 | ) | (2,687 | ) | 5,732 | 192 | ||||||||||||
Income tax effect that will not be reclassified to profit or loss | 9 | (8,642 | ) | (4,126 | ) | 2,833 | 95 | |||||||||||
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| |||||||||||
Net other comprehensive income (loss) that will not be reclassified to profit or loss in subsequent periods | 42,072 | 18,248 | (23,068 | ) | (771 | ) | ||||||||||||
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Other comprehensive loss for the year, net of income tax | (189,902 | ) | (32,829 | ) | (127,266 | ) | (4,255 | ) | ||||||||||
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Total comprehensive income for the year, net of income tax | 2,606,980 | 1,292,995 | 2,381,308 | 79,616 | ||||||||||||||
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Notes | December 31, 2020 | December 31, 2021 | December 31, 2021 | |||||||||||
NT$000 | NT$000 | US$000 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | 6 | 4,113,651 | 5,906,176 | 212,912 | ||||||||||
Current financial assets at fair value through profit or loss | 7 | 53,120 | 359,960 | 12,976 | ||||||||||
Current financial assets at amortized cost | 8 | 206,482 | 29,239 | 1,054 | ||||||||||
Current contract assets | 25 | 389,016 | 400,255 | 14,429 | ||||||||||
Notes receivable, net | 599 | 1,035 | 37 | |||||||||||
Accounts receivable, net | 9 | 5,364,156 | 6,344,246 | 228,704 | ||||||||||
Other receivables | 51,436 | 86,879 | 3,132 | |||||||||||
Current tax assets | — | 389 | 14 | |||||||||||
Inventories | 10 | 2,102,075 | 3,207,177 | 115,616 | ||||||||||
Prepayments | 75,568 | 149,947 | 5,405 | |||||||||||
12,356,103 | 16,485,303 | 594,279 | ||||||||||||
Non-current assets | ||||||||||||||
Non-current financial assets at fair value through profit or loss | 7 | 10,368 | — | — | ||||||||||
Non-current financial assets at fair value through other comprehensive income | 11 | 262,007 | 384,521 | 13,862 | ||||||||||
Non-current financial assets at amortized cost | 8,38 | 48,319 | 37,539 | 1,353 | ||||||||||
Investments accounted for using equity method | 12 | 3,271,677 | 3,900,449 | 140,608 | ||||||||||
Property, plant and equipment, net | 13,38 | 17,994,686 | 20,111,121 | 724,986 | ||||||||||
Right-of-use | 14 | 859,069 | 835,805 | 30,130 | ||||||||||
Deferred tax assets | 33 | 185,691 | 180,598 | 6,510 | ||||||||||
Refundable deposits | 21,186 | 21,278 | 767 | |||||||||||
Other non-current assets | 71,708 | 565,970 | 20,403 | |||||||||||
22,724,711 | 26,037,281 | 938,619 | ||||||||||||
Total assets | 35,080,814 | 42,522,584 | 1,532,898 | |||||||||||
Years Ended
Notes | 2017 | 2018 | 2019 | 2019 | ||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||
Profit attributable to: | ||||||||||||||||||
Equity holders of the Company | ||||||||||||||||||
- Continuing operations | 981,929 | 1,325,824 | 2,508,574 | 83,871 | ||||||||||||||
- Discontinued operations | 1,814,953 | — | — | — | ||||||||||||||
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| |||||||||||
2,796,882 | 1,325,824 | 2,508,574 | 83,871 | |||||||||||||||
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Total comprehensive income attributable to: | ||||||||||||||||||
Equity holders of the Company | ||||||||||||||||||
- Continuing operations | 1,079,672 | 1,292,995 | 2,381,308 | 79,616 | ||||||||||||||
- Discontinued operations | 1,527,308 | — | — | — | ||||||||||||||
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2,606,980 | 1,292,995 | 2,381,308 | 79,616 | |||||||||||||||
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| |||||||||||
Basic earnings per share: | 10 | |||||||||||||||||
Equity holders of the Company | ||||||||||||||||||
- Continuing operations | NT$ | 1.16 | NT$ | 1.65 | NT$ | 3.45 | US$ | 0.12 | ||||||||||
- Discontinued operations | 2.14 | — | — | — | ||||||||||||||
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Equity holders of the Company | NT$ | 3.30 | NT$ | 1.65 | NT$ | 3.45 | US$ | 0.12 | ||||||||||
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Diluted earnings per share: | 10 | |||||||||||||||||
Equity holders of the Company | ||||||||||||||||||
- Continuing operations | NT$ | 1.13 | NT$ | 1.63 | NT$ | 3.40 | US$ | 0.11 | ||||||||||
- Discontinued operations | 2.10 | — | — | — | ||||||||||||||
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| |||||||||||
Equity holders of the Company | NT$ | 3.23 | NT$ | 1.63 | NT$ | 3.40 | US$ | 0.11 | ||||||||||
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| |||||||||||
Basic earnings per equivalent ADS: | ||||||||||||||||||
Equity holders of the Company | ||||||||||||||||||
- Continuing operations | NT$ | 23.20 | NT$ | 33.03 | NT$ | 69.00 | US$ | 2.31 | ||||||||||
- Discontinued operations | 42.87 | — | — | — | ||||||||||||||
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| |||||||||||
Equity holders of the Company | NT$ | 66.07 | NT$ | 33.03 | NT$ | 69.00 | US$ | 2.31 | ||||||||||
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| |||||||||||
Diluted earnings per equivalent ADS: | ||||||||||||||||||
Equity holders of the Company | ||||||||||||||||||
- Continuing operations | NT$ | 22.68 | NT$ | 32.59 | NT$ | 68.06 | US$ | 2.28 | ||||||||||
- Discontinued operations | 41.93 | — | — | — | ||||||||||||||
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| |||||||||||
Equity holders of the Company | NT$ | 64.61 | NT$ | 32.59 | NT$ | 68.06 | US$ | 2.28 | ||||||||||
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|
2021
Notes | December 31, 2020 | December 31, 2021 | December 31, 2021 | |||||||||||
NT$000 | NT$000 | US$000 | ||||||||||||
Liabilities | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term bank Loans | 15,36 | — | 731,751 | 26,379 | ||||||||||
Notes payable | 2,899 | 23 | 1 | |||||||||||
Accounts payable | 16 | 966,821 | 1,012,391 | 36,496 | ||||||||||
Other payables | 17 | 3,249,403 | 4,378,439 | 157,838 | ||||||||||
Current tax liabilities | 580,430 | 1,041,520 | 37,546 | |||||||||||
Current provisions | 45 | 3,463 | 4,281 | 154 | ||||||||||
Current lease liabilities | 36 | 132,549 | 169,782 | 6,121 | ||||||||||
Receipts in advance | 10,790 | — | — | |||||||||||
Long-term bank loans, current portion | 18,36,38 | 748,353 | 46,826 | 1,688 | ||||||||||
Current refund liabilities | 45 | 9,864 | 9,849 | 355 | ||||||||||
Other current liabilities | 21,059 | 14,221 | 513 | |||||||||||
5,725,631 | 7,409,083 | 267,091 | ||||||||||||
Non-current liabilities | ||||||||||||||
Long-term bank loans | 18,36,38 | 6,985,212 | 9,366,539 | 337,655 | ||||||||||
Deferred tax liabilities | 33 | 310,427 | 278,177 | 10,028 | ||||||||||
Non-current lease liabilities | 36 | 737,946 | 681,469 | 24,566 | ||||||||||
Long-term deferred revenue | 72,438 | 120,188 | 4,333 | |||||||||||
Net defined benefit liability, non-current | 19 | 511,651 | 503,288 | 18,143 | ||||||||||
Guarantee deposits | 36 | 21,670 | 21,625 | 779 | ||||||||||
8,639,344 | 10,971,286 | 395,504 | ||||||||||||
Total liabilities | 14,364,975 | 18,380,369 | 662,595 | |||||||||||
Equity | ||||||||||||||
Equity attributable to equity holders of the Company | ||||||||||||||
Capital stock | 21 | 7,272,401 | 7,272,401 | 262,163 | ||||||||||
Capital surplus | 22 | 6,050,787 | 6,055,621 | 218,299 | ||||||||||
Retained earnings | 23 | |||||||||||||
Legal reserve | 1,837,894 | 2,070,505 | 74,640 | |||||||||||
Special reserve | 19,802 | — | — | |||||||||||
Unappropriated retained earnings | 5,401,569 | 8,521,848 | 307,204 | |||||||||||
Other equity interest | 24 | 133,386 | 221,840 | 7,997 | ||||||||||
Total equity | 20,715,839 | 24,142,215 | 870,303 | |||||||||||
Total liabilities and equity | 35,080,814 | 42,522,584 | 1,532,898 | |||||||||||
Comprehensive Income
Notes | December 31, 2018 | December 31, 2019 | December 31, 2019 | |||||||||||
NT$000 | NT$000 | US$000 | ||||||||||||
Assets | ||||||||||||||
Non-current assets | ||||||||||||||
Non-current financial assets at fair value through profit or loss | 11 | 11,471 | 11,038 | 369 | ||||||||||
Non-current financial assets at fair value through other comprehensive income | 12 | 174,357 | 121,808 | 4,072 | ||||||||||
Investment in associates | 13 | 3,863,741 | 3,392,910 | 113,437 | ||||||||||
Non-current financial assets at amortized cost | 14,32 | 99,103 | 68,450 | 2,289 | ||||||||||
Property, plant and equipment, net | 15,32 | 16,819,621 | 17,979,444 | 601,118 | ||||||||||
Right-of-use assets | 16 | — | 687,068 | 22,971 | ||||||||||
Deferred tax assets | 9 | 226,716 | 194,552 | 6,505 | ||||||||||
Refundable deposits | 22,006 | 21,145 | 707 | |||||||||||
Othernon-current assets | 28,560 | 67,126 | 2,244 | |||||||||||
|
|
|
|
|
| |||||||||
21,245,575 | 22,543,541 | 753,712 | ||||||||||||
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|
|
| |||||||||
Current assets | ||||||||||||||
Inventories | 17 | 1,778,835 | 1,767,642 | 59,099 | ||||||||||
Current financial assets at amortized cost | 14 | 169,168 | 168,970 | 5,649 | ||||||||||
Current contract assets | 4 | 299,835 | 377,869 | 12,634 | ||||||||||
Accounts and notes receivable | 18 | 4,747,288 | 4,453,669 | 148,902 | ||||||||||
Accounts receivable – related parties | 140 | 1,045 | 35 | |||||||||||
Other receivables | 63,037 | 89,676 | 2,998 | |||||||||||
Other receivables – related parties | 3,131 | 2,948 | 99 | |||||||||||
Current tax assets | 139,595 | 138,941 | 4,645 | |||||||||||
Prepayments | 44,592 | 57,502 | 1,922 | |||||||||||
Cash and cash equivalents | 19 | 4,642,522 | 4,704,084 | 157,275 | ||||||||||
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|
|
|
| |||||||||
11,888,143 | 11,762,346 | 393,258 | ||||||||||||
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|
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|
| |||||||||
Total assets | 33,133,718 | 34,305,887 | 1,146,970 | |||||||||||
|
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|
|
Notes | 2019 | 2020 | 2021 | 2021 | ||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||
Revenue | 25,44 | 20,337,881 | 23,011,381 | 27,400,035 | 987,745 | |||||||||||||
Cost of revenue | 10,31,32 | (16,411,742 | ) | (17,979,208 | ) | (20,146,057 | ) | (726,246 | ) | |||||||||
Gross profit | 3,926,139 | 5,032,173 | 7,253,978 | 261,499 | ||||||||||||||
Sales and marketing expenses | 31,32 | (56,076 | ) | (56,978 | ) | (73,928 | ) | (2,665 | ) | |||||||||
General and administrative expenses | 31,32 | (498,241 | ) | (528,759 | ) | (604,029 | ) | (21,774 | ) | |||||||||
Research and development expenses | 31,32 | (1,007,631 | ) | (1,015,512 | ) | (1,139,219 | ) | (41,068 | ) | |||||||||
Other income (expenses), net | 26 | 92,928 | 135,578 | 125,587 | 4,527 | |||||||||||||
Operating profit | 44 | 2,457,119 | 3,566,502 | 5,562,389 | 200,519 | |||||||||||||
Interest income | 27,44 | 64,368 | 27,778 | 9,980 | 360 | |||||||||||||
Other income | 28 | 10,759 | 21,157 | 34,496 | 1,243 | |||||||||||||
Other gains and losses | 29 | (148,414 | ) | (323,267 | ) | (65,829 | ) | (2,373 | ) | |||||||||
Finance costs | 30 | (180,262 | ) | (171,482 | ) | (131,184 | ) | (4,729 | ) | |||||||||
Share of (loss) profit of associates and joint ventures accounted for using equity method | 12,44 | (154,926 | ) | (147,329 | ) | 625,733 | 22,557 | |||||||||||
Gain on disposal of investment accounted for using equity method | 12 | 973,609 | — | — | — | |||||||||||||
Profit before income tax | 3,022,253 | 2,973,359 | 6,035,585 | 217,577 | ||||||||||||||
Income tax expense | 33 | (513,679 | ) | (594,381 | ) | (1,098,318 | ) | (39,593 | ) | |||||||||
Profit for the year | 2,508,574 | 2,378,978 | 4,937,267 | 177,984 | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Profit (loss) on remeasurements of defined benefit plans | 19 | 20,916 | (51,990 | ) | (14,999 | ) | (541 | ) | ||||||||||
Unrealized (loss) gain on valuation of equity instruments at fair value through other comprehensive income | 11 | (52,549 | ) | 140,199 | 122,514 | 4,416 | ||||||||||||
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will not be reclassified to profit or loss | 12 | 5,732 | 23,143 | 28,843 | 1,040 | |||||||||||||
Income tax effect on components that will not be reclassified to profit or loss | 33 | 2,833 | (24,396 | ) | (27,460 | ) | (990 | ) | ||||||||||
Components of other comprehensive (loss) income that will not be reclassified to profit or loss | (23,068 | ) | 86,956 | 108,898 | 3,925 | |||||||||||||
Exchange differences on translation of foreign operations | 24 | (104,198 | ) | 28,352 | (24,695 | ) | (890 | ) | ||||||||||
Components of other comprehensive (loss) income that will be reclassified to profit or loss | (104,198 | ) | 28,352 | (24,695 | ) | (890 | ) | |||||||||||
Other comprehensive (loss) income, net of income tax | (127,266 | ) | 115,308 | 84,203 | 3,035 | |||||||||||||
Total comprehensive income for the year | 2,381,308 | 2,494,286 | 5,021,470 | 181,019 | ||||||||||||||
Notes | December 31, 2018 | December 31, 2019 | December 31, 2019 | |||||||||||
NT$000 | NT$000 | US$000 | ||||||||||||
Equity and liabilities | ||||||||||||||
Capital and reserves | ||||||||||||||
Issued capital | 21 | 7,528,577 | 7,272,401 | 243,143 | ||||||||||
Capital surplus | 22 | 6,263,553 | 6,050,787 | 202,300 | ||||||||||
Retained earnings | 22 | |||||||||||||
Legal reserve | 1,469,170 | 1,579,478 | 52,807 | |||||||||||
Unappropriated retained earnings | 3,602,663 | 4,651,215 | 155,507 | |||||||||||
Other reserve | 23 | |||||||||||||
Foreign currency translation reserve | 14,516 | (89,682 | ) | (2,998 | ) | |||||||||
Unrealized gain on valuation of financial assets at fair value through other comprehensive income | 106,898 | 66,386 | 2,219 | |||||||||||
Unearned employee awards | (1,701 | ) | — | — | ||||||||||
Treasury stock | 24 | (962,503 | ) | — | — | |||||||||
|
|
|
|
|
| |||||||||
Total equity | 18,021,173 | 19,530,585 | 652,978 | |||||||||||
|
|
|
|
|
| |||||||||
Non-current liabilities | ||||||||||||||
Long-term bank loans | 25,30,32 | 9,042,096 | 8,293,226 | 277,273 | ||||||||||
Non-current lease liabilities | 30 | — | 668,384 | 22,346 | ||||||||||
Deferred tax liabilities | 9 | 308,759 | 309,129 | 10,335 | ||||||||||
Net defined benefit liability,non-current | 26 | 520,765 | 480,107 | 16,052 | ||||||||||
Guarantee deposits | 30 | 1,092 | 1,095 | 37 | ||||||||||
Othernon-current liabilities | — | 4,500 | 150 | |||||||||||
|
|
|
|
|
| |||||||||
9,872,712 | 9,756,441 | 326,193 | ||||||||||||
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|
|
|
|
| |||||||||
Current liabilities | ||||||||||||||
Current contract liabilities | 4 | 1,432 | 1,231 | 41 | ||||||||||
Accounts payable | 637,271 | 819,548 | 27,401 | |||||||||||
Accounts payable – related parties | 347 | — | — | |||||||||||
Payables to contractors and equipment suppliers | 1,516,735 | 972,770 | 32,523 | |||||||||||
Other payables | 1,678,482 | 2,004,266 | 67,010 | |||||||||||
Other payables – related parties | 218 | — | — | |||||||||||
Current tax liabilities | 546,342 | 386,832 | 12,933 | |||||||||||
Current provisions | 27 | 29,352 | 1,998 | 67 | ||||||||||
Current lease liabilities | 30 | — | 24,567 | 821 | ||||||||||
Receipts in advance | 1,013 | 988 | 33 | |||||||||||
Other current liabilities | 30,800 | 32,242 | 1,078 | |||||||||||
Current refund liabilities | 28 | 32,627 | 26,000 | 869 | ||||||||||
Long-term lease obligations payable, current portion | 17,792 | — | — | |||||||||||
Long-term bank loans, current portion | 25,30,32 | 747,422 | 748,419 | 25,023 | ||||||||||
|
|
|
|
|
| |||||||||
5,239,833 | 5,018,861 | 167,799 | ||||||||||||
|
|
|
|
|
| |||||||||
Total liabilities | 15,112,545 | 14,775,302 | 493,992 | |||||||||||
|
|
|
|
|
| |||||||||
Total equity and liabilities | 33,133,718 | 34,305,887 | 1,146,970 | |||||||||||
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|
|
|
|
2021
Notes | 2019 | 2020 | 2021 | 2021 | ||||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||||
Earnings per share – basic | 34 | NT$ | 3.45 | NT$ | 3.27 | NT$ | 6.79 | US$ | 0.24 | |||||||||||
Earnings per share – diluted | 34 | NT$ | 3.40 | NT$ | 3.23 | NT$ | 6.65 | US$ | 0.24 | |||||||||||
Earnings per equivalent ADS – basic | NT$ | 69.00 | NT$ | 65.42 | NT$ | 135.78 | US$ | 4.89 | ||||||||||||
Earnings per equivalent ADS – diluted | NT$ | 68.06 | NT$ | 64.57 | NT$ | 132.93 | US$ | 4.79 | ||||||||||||
Retained earnings (Note 22) | Other reserve (Note 23) | |||||||||||||||||||||||||||||||||||||||
Issued capital (Note 21) | Capital surplus (Note 22) | Legal reserve | Unappropriated retained earnings | Foreign currency translation reserve | Amounts recognized in other comprehensive income (loss) and accumulated in equity relating to non-current assets held for sale | Unrealized gain on valuation of available-for-sale financial assets | Unearned employee awards | Treasury stock (Note 24) | Total equity | |||||||||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||||||||||||||||
January 1, 2017 | 8,869,663 | 6,888,826 | 1,137,837 | 260,989 | 10,600 | 287,645 | — | (200,204 | ) | (1,007,654 | ) | 16,247,702 | ||||||||||||||||||||||||||||
Profit for the year | — | — | — | 2,796,882 | — | — | — | — | — | 2,796,882 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the year | — | — | — | 42,072 | (232,652 | ) | — | 678 | — | — | (189,902 | ) | ||||||||||||||||||||||||||||
|
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|
|
|
|
|
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|
|
|
|
|
|
| |||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 2,838,954 | (232,652 | ) | — | 678 | — | — | 2,606,980 | |||||||||||||||||||||||||||||
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Appropriations of prior year’s earnings: | ||||||||||||||||||||||||||||||||||||||||
Legal reserve (Note 22) | — | — | 28,680 | (28,680 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Cash dividends (Note 22) | — | — | — | (257,026 | ) | — | — | — | — | — | (257,026 | ) | ||||||||||||||||||||||||||||
Cash distribution from capital surplus (Note 22) | — | (599,728 | ) | — | — | — | — | — | — | — | (599,728 | ) | ||||||||||||||||||||||||||||
Restricted shares | (6,692 | ) | (17,650 | ) | — | 1,729 | — | — | — | 145,634 | — | 123,021 | ||||||||||||||||||||||||||||
Effect of disposal of subsidiary | — | — | — | — | 287,645 | (287,645 | ) | — | — | — | — | |||||||||||||||||||||||||||||
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|
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|
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|
| |||||||||||||||||||||
December 31, 2017 | 8,862,971 | 6,271,448 | 1,166,517 | 2,815,966 | 65,593 | — | 678 | (54,570 | ) | (1,007,654 | ) | 18,120,949 | ||||||||||||||||||||||||||||
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|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
Equity attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||
Retained earnings | Other equity interest | |||||||||||||||||||||||||||||||||||
Capital Stock | Capital surplus | Legal reserve | Unappropriated retained earnings | Financial statements translation differences of foreign operations | Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | Unearned employee awards | Treasury stock | Total equity | ||||||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||||||||
Balance at January 1, 2019 | 7,528,577 | 6,263,553 | 1,469,170 | 3,602,663 | 14,516 | 106,898 | (1,701 | ) | (962,503 | ) | 18,021,173 | |||||||||||||||||||||||||
Profit for the year | — | — | — | 2,508,574 | — | — | — | — | 2,508,574 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | 17,372 | (104,198 | ) | (40,440 | ) | — | ��� | (127,266 | ) | ||||||||||||||||||||||||
Total comprehensive income (loss) for the year (Note 24) | — | — | — | 2,525,946 | (104,198 | ) | (40,440 | ) | — | — | 2,381,308 | |||||||||||||||||||||||||
Appropriation of prior year’s earnings: | ||||||||||||||||||||||||||||||||||||
Legal reserve (Note 23) | — | — | 110,308 | (110,308 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
Cash dividends (Note 23) | — | — | — | (872,718 | ) | — | — | — | — | (872,718 | ) | |||||||||||||||||||||||||
Restricted shares (Note 20) | (477 | ) | (412 | ) | — | 10 | — | — | 1,701 | — | 822 | |||||||||||||||||||||||||
Cancellation of treasury stock (Note 21) | (255,699 | ) | (212,354 | ) | — | (494,450 | ) | — | — | — | 962,503 | — | ||||||||||||||||||||||||
Disposal of investment accounted for using equity method (Note 24) | — | — | — | 72 | — | (72 | ) | — | — | — | ||||||||||||||||||||||||||
Balance at December 31, 2019 | 7,272,401 | 6,050,787 | 1,579,478 | 4,651,215 | (89,682 | ) | 66,386 | — | — | 19,530,585 | ||||||||||||||||||||||||||
Retained earnings (Note 22) | Other reserve (Note 23) | |||||||||||||||||||||||||||||||||||||||
Issued capital (Note 21) | Capital surplus (Note 22) | Legal reserve | Unappropriated retained earnings | Foreign currency translation reserve | Unrealized gain on valuation of financial assets at fair value through other comprehensive income | Unrealized gain (loss) on valuation of available-for- sale financial assets | Unearned employee awards | Treasury stock (Note 24) | Total equity | |||||||||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||||||||||||||||
January 1, 2018 | 8,862,971 | 6,271,448 | 1,166,517 | 2,815,966 | 65,593 | — | 678 | (54,570 | ) | (1,007,654 | ) | 18,120,949 | ||||||||||||||||||||||||||||
Effects on initial application of IFRS 9 and IFRS 15 | — | — | — | 65,050 | — | 42,843 | (678 | ) | — | — | 107,215 | |||||||||||||||||||||||||||||
|
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|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
January 1, 2018 (Adjusted) | 8,862,971 | 6,271,448 | 1,166,517 | 2,881,016 | 65,593 | 42,843 | — | (54,570 | ) | (1,007,654 | ) | 18,228,164 | ||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Profit for the year | — | — | — | 1,325,824 | — | — | — | — | — | 1,325,824 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the year | — | — | — | (45,807 | ) | (51,077 | ) | 64,055 | — | — | — | (32,829 | ) | |||||||||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 1,280,017 | (51,077 | ) | 64,055 | — | — | — | 1,292,995 | |||||||||||||||||||||||||||||
|
|
|
|
|
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|
|
|
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|
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|
|
|
|
|
|
| |||||||||||||||||||||
Appropriations of prior year’s earnings: | ||||||||||||||||||||||||||||||||||||||||
Legal reserve (Note 22) | — | — | 302,653 | (302,653 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Cash dividends (Note 22) | — | — | — | (256,806 | ) | — | — | — | — | — | (256,806 | ) | ||||||||||||||||||||||||||||
Restricted shares (Note 34) | (4,948 | ) | (7,967 | ) | — | 1,089 | — | — | — | 52,869 | — | 41,043 | ||||||||||||||||||||||||||||
Capital reduction | (1,329,446 | ) | 72 | — | — | — | — | — | — | 45,151 | (1,284,223 | ) | ||||||||||||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
December 31, 2018 | 7,528,577 | 6,263,553 | 1,469,170 | 3,602,663 | 14,516 | 106,898 | — | (1,701 | ) | (962,503 | ) | 18,021,173 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||
Retained earnings | Other equity interest | |||||||||||||||||||||||||||||||
Capital stock | Capital surplus | Legal reserve | Special reserve | Unappropriated retained earnings | Financial statements translation differences of foreign operations | Unrealized gain on valuation of financial assets at fair value through other comprehensive income | Total equity | |||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||||||||||
Balance at January 1, 2020 | 7,272,401 | 6,050,787 | 1,579,478 | — | 4,651,215 | (89,682 | ) | 66,386 | 19,530,585 | |||||||||||||||||||||||
Profit for the year | — | — | — | — | 2,378,978 | — | — | 2,378,978 | ||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | (41,374 | ) | 28,352 | 128,330 | 115,308 | |||||||||||||||||||||||
Total comprehensive income for the year (Note 24) | — | — | — | — | 2,337,604 | 28,352 | 128,330 | 2,494,286 | ||||||||||||||||||||||||
Appropriation of prior year’s earnings: | ||||||||||||||||||||||||||||||||
Legal reserve (Note 23) | — | — | 258,416 | — | (258,416 | ) | — | — | — | |||||||||||||||||||||||
Special reserve (Note 23) | — | — | — | 19,802 | (19,802 | ) | — | — | — | |||||||||||||||||||||||
Cash dividends (Note 23) | — | — | — | — | (1,309,032 | ) | — | — | (1,309,032 | ) | ||||||||||||||||||||||
Balance at December 31, 2020 | 7,272,401 | 6,050,787 | 1,837,894 | 19,802 | 5,401,569 | (61,330 | ) | 194,716 | 20,715,839 | |||||||||||||||||||||||
Equity attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||
Retained earnings | Other equity interest | |||||||||||||||||||||||||||||||
Capital stock | Capital surplus | Legal reserve | Special reserve | Unappropriated retained earnings | Financial statements translation differences of foreign operations | Unrealized gain on valuation of financial assets at fair value through other comprehensive income | Total equity | |||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||||||||||
Balance at January 1, 2021 | 7,272,401 | 6,050,787 | 1,837,894 | 19,802 | 5,401,569 | (61,330 | ) | 194,716 | 20,715,839 | |||||||||||||||||||||||
Profit for the year | — | — | — | — | 4,937,267 | — | — | 4,937,267 | ||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | (4,251 | ) | (24,695 | ) | 113,149 | 84,203 | ||||||||||||||||||||||
Total comprehensive income (loss) for the year (Note 24) | — | — | — | — | 4,933,016 | (24,695 | ) | 113,149 | 5,021,470 | |||||||||||||||||||||||
Appropriation of prior year’s earnings: | ||||||||||||||||||||||||||||||||
Legal reserve (Note 23) | — | — | 232,611 | — | (232,611 | ) | — | — | — | |||||||||||||||||||||||
Special reserve (Note 23) | — | — | — | (19,802 | ) | 19,802 | — | — | — | |||||||||||||||||||||||
Cash dividends (Note 23) | — | — | — | — | (1,599,928 | ) | — | — | (1,599,928 | ) | ||||||||||||||||||||||
Changes in associates accounted for using equity method (Note 22) | — | 4,834 | — | — | — | — | — | 4,834 | ||||||||||||||||||||||||
Balance at December 31, 2021 | 7,272,401 | 6,055,621 | 2,070,505 | — | 8,521,848 | (86,025 | ) | 307,865 | 24,142,215 | |||||||||||||||||||||||
Retained earnings (Note 22) | Other reserve (Note 23) | |||||||||||||||||||||||||||||||||||
Issued capital (Note 21) | Capital surplus (Note 22) | Legal reserve | Unappropriated retained earnings | Foreign currency translation reserve | Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | Unearned employee awards | Treasury stock (Note 24) | Total equity | ||||||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||||||||
January 1, 2019 | 7,528,577 | 6,263,553 | 1,469,170 | 3,602,663 | 14,516 | 106,898 | (1,701 | ) | (962,503 | ) | 18,021,173 | |||||||||||||||||||||||||
Profit for the year | — | — | — | 2,508,574 | — | — | — | — | 2,508,574 | |||||||||||||||||||||||||||
Other comprehensive income (loss) for the year | — | — | — | 17,372 | (104,198 | ) | (40,440 | ) | — | — | (127,266 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 2,525,946 | (104,198 | ) | (40,440 | ) | — | — | 2,381,308 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Appropriations of prior year’s earnings: | — | — | ||||||||||||||||||||||||||||||||||
Legal reserve (Note 22) | — | — | 110,308 | (110,308 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
Cash dividends (Note 22) | — | — | — | (872,718 | ) | — | — | — | — | (872,718 | ) | |||||||||||||||||||||||||
Restricted shares (Note 34) | (477 | ) | (412 | ) | — | 10 | — | — | 1,701 | — | 822 | |||||||||||||||||||||||||
Cancellation of treasury stock (Note 24) | (255,699 | ) | (212,354 | ) | — | (494,450 | ) | — | — | — | 962,503 | — | ||||||||||||||||||||||||
Disposal of investment in associates (Note 13) | — | — | — | 72 | — | (72 | ) | — | — | — | ||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
December 31, 2019 | 7,272,401 | 6,050,787 | 1,579,478 | 4,651,215 | (89,682 | ) | 66,386 | — | — | 19,530,585 | ||||||||||||||||||||||||||
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|
|
2020 and 2021
Notes | 2019 | 2020 | 2021 | 2021 | ||||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Profit before income tax | 3,022,253 | 2,973,359 | 6,035,585 | 217,577 | ||||||||||||||||
Adjustments to reconcile profit (loss) | ||||||||||||||||||||
Depreciation expenses | 13,14,31,44 | 3,731,914 | 4,175,519 | 4,634,112 | 167,055 | |||||||||||||||
(Reversal of) expected credit losses | (806 | ) | 264 | 299 | 11 | |||||||||||||||
Interest expense | 30,44 | 171,075 | 162,400 | 120,998 | 4,362 | |||||||||||||||
Interest income | 27,44 | (64,368 | ) | (27,778 | ) | (9,980 | ) | (360 | ) | |||||||||||
Dividend income | 28 | (585 | ) | (3,229 | ) | (4,690 | ) | (169 | ) | |||||||||||
Share-based payments | 20,32 | 822 | — | — | — | |||||||||||||||
Share of loss (profit) of associates and joint ventures accounted for using equity method | 154,926 | 147,329 | (625,733 | ) | (22,557 | ) | ||||||||||||||
Gain on valuation of financial assets at fair value through profit or loss | 7,29 | (1,317 | ) | (24,015 | ) | (15,262 | ) | (550 | ) | |||||||||||
Gain on disposal of property, plant and equipment, net | 26 | (20,271 | ) | (48,070 | ) | (33,935 | ) | (1,223 | ) | |||||||||||
Insurance compensation income | 26 | (10,435 | ) | — | — | — | ||||||||||||||
Gain from lease modification | — | — | (891 | ) | (32 | ) | ||||||||||||||
Impairment loss on property, plant and equipment | 13,26 | 9,938 | — | 4,843 | 174 | |||||||||||||||
Gain on disposal of investment accounted for using equity method | 12 | (973,609 | ) | — | — | — | ||||||||||||||
Deferred revenue | (12,279 | ) | (10,143 | ) | (12,389 | ) | (447 | ) | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||||||
Financial assets at fair value through profit or loss | 1,750 | (28,435 | ) | (290,637 | ) | (10,477 | ) | |||||||||||||
Current contract assets | (78,013 | ) | (11,150 | ) | (11,242 | ) | (405 | ) | ||||||||||||
Accounts and notes receivable | 294,409 | (911,355 | ) | (980,816 | ) | (35,357 | ) | |||||||||||||
Accounts receivable – related parties | (905 | ) | 1,045 | — | — | |||||||||||||||
Other receivables | (8,082 | ) | 13,529 | (46,089 | ) | (1,661 | ) | |||||||||||||
Other receivables – related parties | 12,437 | 4,923 | — | — | ||||||||||||||||
Inventories | 11,193 | (334,433 | ) | (1,105,102 | ) | (39,838 | ) | |||||||||||||
Prepayments | (4,333 | ) | (10,485 | ) | (67,401 | ) | (2,430 | ) | ||||||||||||
Other non-current assets | 6,914 | 6,337 | 6,915 | 249 | ||||||||||||||||
Current contract liabilities | (201 | ) | (1,231 | ) | — | — | ||||||||||||||
Accounts and notes payable | 182,277 | 170,172 | 42,694 | 1,539 | ||||||||||||||||
Accounts payable – related parties | (347 | ) | — | — | — | |||||||||||||||
Other payables | 331,207 | 112,151 | 471,766 | 17,007 | ||||||||||||||||
Other payables – related parties | (218 | ) | — | — | — | |||||||||||||||
Current provisions | (27,354 | ) | 1,465 | 818 | 29 | |||||||||||||||
Current refund liabilities | (6,627 | ) | (16,136 | ) | (15 | ) | (1 | ) | ||||||||||||
Other current liabilities | 1,442 | (11,183 | ) | (6,838 | ) | (247 | ) | |||||||||||||
Net defined benefit liability, non-current | (19,742 | ) | (20,446 | ) | (23,362 | ) | (842 | ) | ||||||||||||
Cash generated from operations | 6,703,065 | 6,310,404 | 8,083,648 | 291,407 | ||||||||||||||||
Interest received | 67,105 | 32,817 | 10,344 | 373 | ||||||||||||||||
Dividends received | 20,585 | 23,229 | 17,140 | 618 | ||||||||||||||||
Interest paid | (171,149 | ) | (150,135 | ) | (99,857 | ) | (3,600 | ) | ||||||||||||
Income tax paid | (637,169 | ) | (276,079 | ) | (691,566 | ) | (24,930 | ) | ||||||||||||
Net cash generated from operating activities | 5,982,437 | 5,940,236 | 7,319,709 | 263,868 | ||||||||||||||||
Notes | 2019 | 2020 | 2021 | 2021 | ||||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Decrease (increase) in financial assets at amortized cost | 30,851 | (17,381 | ) | 188,023 | 6,778 | |||||||||||||||
Proceeds from insurance compensation | 10,435 | — | — | — | ||||||||||||||||
Proceeds from disposal of investment accounted for using equity method | 12 | 1,180,179 | — | — | — | |||||||||||||||
Proceeds from disposal of financial assets at fair value through profit or loss | — | — | 9,427 | 340 | ||||||||||||||||
Acquisition of property, plant and equipment | 35 | (5,440,621 | ) | (3,961,026 | ) | (5,881,506 | ) | (212,023 | ) | |||||||||||
Proceeds from disposal of property, plant and equipment | 21,434 | 87,107 | 120,586 | 4,347 | ||||||||||||||||
Decrease (increase) in refundable deposits | 861 | (41 | ) | (92 | ) | (3 | ) | |||||||||||||
Increase in other non-current assets | (45,480 | ) | (10,919 | ) | (501,177 | ) | (18,066 | ) | ||||||||||||
Increase in long-term deferred revenue | 4,500 | 85,909 | 49,349 | 1,779 | ||||||||||||||||
Proceeds from capital reduction of investment in associate | — | 17,000 | — | — | ||||||||||||||||
Net cash used in investing activities | (4,237,841 | ) | (3,799,351 | ) | (6,015,390 | ) | (216,848 | ) | ||||||||||||
Cash flows from financing activities | 36 | |||||||||||||||||||
Proceeds from short-term bank loans | 834,955 | 151,071 | 2,195,726 | 79,154 | ||||||||||||||||
Payments on short-term bank loans | (834,955 | ) | (151,071 | ) | (1,463,975 | ) | (52,775 | ) | ||||||||||||
Payment on lease liabilities | (48,161 | ) | (84,928 | ) | (289,668 | ) | (10,442 | ) | ||||||||||||
Proceeds from long-term bank loans | — | 4,429,593 | 4,908,782 | 176,957 | ||||||||||||||||
Payments on long-term bank loans | (756,450 | ) | (5,756,450 | ) | (3,256,450 | ) | (117,392 | ) | ||||||||||||
Increase (decrease) in guarantee deposits | 3 | 575 | (45 | ) | (2 | ) | ||||||||||||||
Cash dividend paid | 23 | (872,718 | ) | (1,309,032 | ) | (1,599,928 | ) | (57,676 | ) | |||||||||||
Net cash (used in) generated from financing activities | (1,677,326 | ) | (2,720,242 | ) | 494,442 | 17,824 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 67,270 | (579,357 | ) | 1,798,761 | 64,844 | |||||||||||||||
Effect of foreign exchange rate changes | (5,708 | ) | (11,076 | ) | (6,236 | ) | (225 | ) | ||||||||||||
Cash and cash equivalents at beginning of year | 6 | 4,642,522 | 4,704,084 | 4,113,651 | 148,293 | |||||||||||||||
Cash and cash equivalents at end of year | 6 | 4,704,084 | 4,113,651 | 5,906,176 | 212,912 | |||||||||||||||
Consolidated Statements of Cash Flows
Years Ended December 31, 2017, 2018 and 2019
Notes | 2017 | 2018 | 2019 | 2019 | ||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||
Profit before income tax – continuing operations | 1,532,416 | 1,782,442 | 3,022,253 | 101,045 | ||||||||||||||
Profit before income tax – discontinued operations | 20 | 1,814,953 | — | — | — | |||||||||||||
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| |||||||||||
Profit before income tax including discontinued operations | 3,347,369 | 1,782,442 | 3,022,253 | 101,045 | ||||||||||||||
Adjustments to reconcile profit before income tax to net cash flows : | ||||||||||||||||||
Depreciation expenses | 4,5,15,16 | 2,899,278 | 3,376,579 | 3,731,914 | 124,771 | |||||||||||||
Reversal for impairment of accounts and notes receivable | (87 | ) | — | — | — | |||||||||||||
Expected (reversal of) credit losses | — | 348 | (806 | ) | (27 | ) | ||||||||||||
Interest expense | 4,7 | 192,839 | 152,416 | 171,075 | 5,720 | |||||||||||||
Interest income | 4,8 | (53,587 | ) | (49,971 | ) | (64,368 | ) | (2,152 | ) | |||||||||
Dividend income | 8 | — | (571 | ) | (585 | ) | (20 | ) | ||||||||||
Impairment loss on property, plant and equipment | 6,15 | 956 | — | 9,938 | 332 | |||||||||||||
Gain on valuation of financial assets at fair value through profit or loss | 8,11 | (637 | ) | (1,485 | ) | (1,317 | ) | (44 | ) | |||||||||
Gain on disposal of property, plant and equipment, net | 6 | (132,774 | ) | (14,274 | ) | (20,271 | ) | (678 | ) | |||||||||
Gain on disposal of a subsidiary | 20 | (1,843,234 | ) | — | — | — | ||||||||||||
Insurance compensation income | 6 | (486,858 | ) | (147 | ) | (10,435 | ) | (349 | ) | |||||||||
Share of loss of associates | 4,13 | 179,491 | 300,101 | 154,926 | 5,179 | |||||||||||||
Gain on disposal of investment in associates | 13 | (16,929 | ) | — | (973,609 | ) | (32,551 | ) | ||||||||||
Share-based payments | 5,34 | 123,021 | 41,043 | 822 | 27 | |||||||||||||
Deferred revenue | (11,995 | ) | (42,857 | ) | (12,279 | ) | (410 | ) | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||
Financial assets at fair value through profit or loss | 637 | 1,447 | 1,750 | 59 | ||||||||||||||
Current contract assets | — | (44,858 | ) | (78,013 | ) | (2,608 | ) | |||||||||||
Accounts and notes receivable | 127,800 | (733,695 | ) | 294,409 | 9,843 | |||||||||||||
Accounts receivable – related parties | (240 | ) | (129 | ) | (905 | ) | (30 | ) | ||||||||||
Other receivables | (15,644 | ) | 5,238 | (8,082 | ) | (270 | ) | |||||||||||
Other receivables – related parties | 35,855 | 16,317 | 12,437 | 416 | ||||||||||||||
Inventories | (63,910 | ) | (58,101 | ) | 11,193 | 374 | ||||||||||||
Prepayments | 126,708 | 46,781 | (4,333 | ) | (145 | ) | ||||||||||||
Other financial assets | 1,600 | — | — | — | ||||||||||||||
Financial assets at fair value through profit or loss | 637 | 1,447 | 1,750 | 59 | ||||||||||||||
Other non-current assets | 6,914 | 6,914 | 6,914 | 231 | ||||||||||||||
Current contract liabilities | — | 280 | (201 | ) | (7 | ) | ||||||||||||
Accounts payable | (147,859 | ) | (50,689 | ) | 182,277 | 6,094 | ||||||||||||
Accounts payable – related parties | 263 | 121 | (347 | ) | (12 | ) | ||||||||||||
Other payables | 438,682 | (301,711 | ) | 331,207 | 11,073 | |||||||||||||
Other payables – related parties | (43,144 | ) | 182 | (218 | ) | (7 | ) | |||||||||||
Current provisions | 46,592 | (27,803 | ) | (27,354 | ) | (914 | ) | |||||||||||
Receipts in advance | (5,913 | ) | — | — | — | |||||||||||||
Current refund liabilities | — | (37,529 | ) | (6,627 | ) | (222 | ) | |||||||||||
Other current liabilities | (15,469 | ) | (475 | ) | 1,442 | 48 | ||||||||||||
Net defined benefit liability,non-current | (17,604 | ) | (17,722 | ) | (19,742 | ) | (660 | ) | ||||||||||
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|
|
|
|
|
|
| |||||||||||
Cash generated from operations | 4,672,121 | 4,348,192 | 6,703,065 | 224,108 | ||||||||||||||
Interest received | 47,815 | 48,590 | 67,105 | 2,244 | ||||||||||||||
Dividends received | 14,325 | 6,184 | 20,585 | 688 | ||||||||||||||
Interest paid | (189,381 | ) | (154,307 | ) | (171,149 | ) | (5,722 | ) | ||||||||||
Income tax paid | (387,590 | ) | (119,473 | ) | (637,169 | ) | (21,303 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net cash generated from operating activities | 4,157,290 | 4,129,186 | 5,982,437 | 200,015 | ||||||||||||||
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|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Continued)
Years Ended December 31, 2017, 2018 and 2019
Notes | 2017 | 2018 | 2019 | 2019 | ||||||||||||||
NT$000 | NT$000 | NT$000 | US$000 | |||||||||||||||
Cash flows from investing activities | ||||||||||||||||||
Proceeds from disposal of property, plant and equipment | 306,634 | 18,160 | 21,434 | 717 | ||||||||||||||
Proceeds from insurance compensation | 486,858 | 147 | 10,435 | 349 | ||||||||||||||
Net cash flow from disposal of a subsidiary | 30 | 1,781,213 | — | — | — | |||||||||||||
Proceeds from disposal of investment in associate | — | — | 1,180,179 | 39,458 | ||||||||||||||
Acquisition of property, plant and equipment | 30 | (4,682,705 | ) | (4,154,198 | ) | (5,440,621 | ) | (181,900 | ) | |||||||||
Acquisition ofavailable-for-sale financial assets | (10,940 | ) | — | — | — | |||||||||||||
Acquisition of investment in associate | 13,31 | (1,373,486 | ) | (794,694 | ) | — | — | |||||||||||
(Increase) decrease in refundable deposits | (11 | ) | (664 | ) | 861 | 29 | ||||||||||||
Increase in other non-current assets | — | — | (45,480 | ) | (1,520 | ) | ||||||||||||
Increase in other non-current liabilities | — | — | 4,500 | 150 | ||||||||||||||
(Increase) decrease in financial assets at amortized cost | — | (198,030 | ) | 30,851 | 1,031 | |||||||||||||
Increase in other financial assets | (964 | ) | — | — | — | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
Net cash used in investing activities | (3,493,401 | ) | (5,129,279 | ) | (4,237,841 | ) | (141,686 | ) | ||||||||||
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|
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| |||||||||||
Cash flows from financing activities | 30 | |||||||||||||||||
Proceeds from short-term bank loans | 5,560,354 | 1,053,202 | 834,955 | 27,916 | ||||||||||||||
Payments on short-term bank loans | (4,278,518 | ) | (2,022,555 | ) | (834,955 | ) | (27,916 | ) | ||||||||||
Payment on lease liabilities | — | — | (48,161 | ) | (1,610 | ) | ||||||||||||
Proceeds from long-term bank loans | 148,829 | 12,663,550 | — | — | ||||||||||||||
Payments on long-term bank loans | (1,124,699 | ) | (12,553,300 | ) | (756,450 | ) | (25,291 | ) | ||||||||||
(Decrease) increase in guarantee deposits | (33 | ) | (279 | ) | 3 | — | ||||||||||||
Cash dividend paid | 22 | (257,026 | ) | (256,806 | ) | (872,718 | ) | (29,178 | ) | |||||||||
Cash distribution from capital surplus | 22 | (599,728 | ) | — | — | — | ||||||||||||
Payments on capital reduction | — | (1,284,223 | ) | — | — | |||||||||||||
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|
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| |||||||||||
Net cash used in financing activities | (550,821 | ) | (2,400,411 | ) | (1,677,326 | ) | (56,079 | ) | ||||||||||
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| |||||||||||
Net increase (decrease) in cash and cash equivalents | 113,068 | (3,400,504 | ) | 67,270 | 2,250 | |||||||||||||
Effect of foreign exchange rate changes | (38,617 | ) | 7,312 | (5,708 | ) | (191 | ) | |||||||||||
Cash and cash equivalents at beginning of year | 19 | 7,961,263 | 8,035,714 | 4,642,522 | 155,216 | |||||||||||||
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Cash and cash equivalents at end of year | 19 | 8,035,714 | 4,642,522 | 4,704,084 | 157,275 | |||||||||||||
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The accompanying notes are an integral part of the consolidated financial statements.
1. |
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As of November 30, 2016,
2. | The authorization of the consolidated financial statements |
3. |
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a) | Amendments to IFRSs and the new interpretation that are mandatorily effective for the current year |
New Standards, Interpretations and Amendments | Effective date issued by IASB | |||
Amendments to IFRS 4, “Extension of the Temporary Exemption from Applying IFRS 9” | January 1, 2021 | |||
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, “Interest Rate Benchmark Reform – Phase 2” | January 1, 2021 | |||
Amendments to IFRS 16, “Covid-19-Related | April 1, 2021 |
b) | New standards, interpretations and amendments in issue but not yet effective |
New Standards, Interpretations and Amendments | Effective date issued by IASB | |||
Amendments to IFRS 3, “Reference to the Conceptual Framework” | January 1, 2022 | |||
Amendments to IAS 16, “Property, Plant and Equipment: Proceeds before Intended Use” | January 1, 2022 | |||
Amendments to IAS 37, “Onerous Contracts – Cost of Fulfilling a Contract” | January 1, 2022 | |||
Annual Improvements to IFRS Standards 2018-2020” | January 1, 2022 | |||
Amendments to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” | To be determined by IASB | |||
IFRS 17, “Insurance Contracts” | January 1, 2023 | |||
Amendments to IFRS 17, “Insurance Contracts” | January 1, 2023 | |||
Amendment to IFRS 17, “Initial Application of IFRS 17 and IFRS 9 – Comparative Information” | January 1, 2023 | |||
Amendments to IAS 1, “Classification of Liabilities as Current or Non-current” | January 1, 2023 | |||
Amendments to IAS 1, “Disclosure of Accounting Policies” | January 1, 2023 | |||
Amendments to IAS 8, “Definition of Accounting Estimates” | January 1, 2023 | |||
Amendments to IAS 12, “Deferred Tax related to Assets and Liabilities arising from a Single Transaction” | January 1, 2023 |
4. | Summary of significant accounting policies |
a) | Statement of compliance |
b) | Basis of preparation |
(a) | Except for the following items, the consolidated financial statements have been prepared under the historical cost convention: |
i) | Financial assets at fair value through profit or loss (including derivative instruments). |
ii) | Financial assets at fair value through other comprehensive income. |
iii) | Defined benefit liabilities were recognized based on the net amount of pension fund assets less the present value of benefit obligation. |
(b) | The preparation of the consolidated financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4 dd). |
(c) | These consolidated financial statements are presented in New Taiwan dollars (“NT$”), which is the Company’s functional currency. |
c) |
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ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
Basis of |
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(a) |
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ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
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Other Amendments to IFRSs not listed above are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.
|
None.
|
Basis for preparation of consolidated financial statements: |
i) | All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries. |
ii) | Transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group. |
iii) | Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to thenon-controlling interests even if this results in a deficit balance in thenon-controlling interests. |
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iv) | Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which thenon-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity. |
v) | When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of. |
(b) | Subsidiaries included in the consolidated financial statements: |
Percentage of Ownership (%) | ||||||||||||||
December 31, | ||||||||||||||
Name of investor | Name of investee | Main businesses | Location | 2018 | 2019 | |||||||||
The Company | ChipMOS U.S.A., Inc. (“ChipMOS USA”) | Research, development and marketing of semiconductors, circuits, and electronic related products | San Jose, USA | 100 | 100 | |||||||||
The Company | ChipMOS BVI | Holding company | British Virgin Islands | 100 | 100 |
Percentage of Ownership (%) | ||||||||||||||||||
December 31, | ||||||||||||||||||
Name of investor | Name of investee | Main business | Location | 2020 | 2021 | Note | ||||||||||||
The Company | ChipMOS U.S.A., Inc. (“ChipMOS USA”) | Marketing of semiconductors and electronic related products | San Jose, USA | 100 | 100 | |||||||||||||
The Company | ChipMOS TECHNOLOGIES (BVI) LTD. (“ChipMOS BVI”) | Holding company | British Virgin Islands | 100 | 100 | |||||||||||||
ChipMOS BVI | ChipMOS SEMICONDUCTORS (Shanghai) LTD. (“ChipMOS Shanghai”) | Marketing of semiconductors and electronic related products | Shanghai, People’s Republic of China (“PRC”) | 100 | 100 |
(c) | Subsidiaries not included in the consolidated financial statements: None. |
(d) | Adjustments for subsidiaries with different statements of financial position dates: Not applicable. |
(e) | No significant restrictions on the ability of subsidiaries to transfer funds to parent company. |
(f) | Subsidiaries that have non-controlling interests that are material to the Group: None. |
d) |
|
(a) | Foreign currency transactions and balances |
i) | Foreign currency transactions are translated into the functional currency using the exchange rates on the trade date or measurement date. Therefore, foreign exchange differences resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise. |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
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ii) | Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the statements of financial position date. Exchange differences arising uponre-translation are recognized in profit or loss on the statements of financial position date. |
iii) |
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iv) | All foreign exchange differences are presented in the statement of comprehensive income under “Other gains and losses” by the nature of transactions. |
(b) | Translation of foreign operations |
i) | Assets and liabilities for each statements of financial position are translated at the exchange rates prevailing at the statements of financial position date; |
ii) | Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and |
iii) | All exchange differences are recognized in other comprehensive income. |
e) |
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(a) | Assets that meet one of the following criteria are classified as current assets: |
i) | Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle; |
ii) | Assets held mainly for trading purposes; |
iii) | Assets that are expected to be realized within 12 months from the statements of financial position date; |
iv) | Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than 12 months after the statements of financial position date. |
(b) | Liabilities that meet one of the following criteria are classified as current liabilities: |
i) | Liabilities that are expected to be settled within the normal operating cycle; |
ii) | Liabilities arising mainly from trading activities; |
iii) | Liabilities that are to be settled within 12 months from the statements of financial position date; |
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|
|
iv) | Liabilities for which the repayment date cannot be unconditionally extended to more than 12 months after the statements of financial position date. Liabilities bearing terms that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. |
f) |
|
g) |
|
(a) | Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income. |
(b) | On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using settlement date accounting. |
(c) | At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss. |
(d) | The Group recognizes the dividend income when the right to receive such payment is confirmed, inflow of the future economic benefits associated with the dividend is probable to the Group and the amount of the dividend can be measured reliably. |
h) |
|
(a) | Financial assets at fair value through other comprehensive income comprise equity instruments which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income. |
(b) | On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using settlement date accounting. |
(c) | At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value. |
i) |
|
(a) | Financial assets at amortized cost are those that meet all of the following criteria: |
i) | The objective of the Group’s business model is achieved by collecting contractual cash flows. |
ii) | The financial assets’ contractual cash flows represent solely payments of principal and interest. |
|
|
(b) | The Group’s |
j) |
|
(a) | Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services. |
(b) | The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. |
k) |
|
l) |
|
m) |
|
n) |
|
(a) | Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost. |
(b) | The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interests in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
(c) | When changes in an associate’s equity that are not recognized in profit or loss or other comprehensive income of the associate and such changes not affecting the Group’s ownership percentage of the associate, the Group recognizes the Group’s share of change in equity of the associate in “Capital surplus” in proportion to its ownership. |
(d) | Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interests in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group. |
(e) | In the case where an associate issues new shares and the Group does not subscribe or proportionately acquire the new shares, which results in a change in the Group’s ownership percentage of the associate while maintaining significant influence on the associate, then the Group will treat the transaction as deemed disposal and reclassify to profit or loss the proportion of the gain or loss previously recognized in other comprehensive income relating to that reduction in ownership interest where appropriate. |
(f) | When the Group disposes of its investment in an associate, if it loses significant influence on this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it still retains significant influence on this associate, then the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach. |
o) |
|
(a) | Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized. |
(b) | Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. |
(c) | Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately. |
(d) | The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8 “Accounting Policies, Change in Accounting Estimates and Errors”, from the date of the change. The estimated useful lives of property, plant and equipment are as follows: |
Buildings | 5 to 51 years | |
Machinery and equipment | 2 to 8 years | |
Tools | 2 to 4 years | |
Others | 2 to 6 years |
|
p) |
Leasing arrangements (lessee) – right-of-use assets / lease liabilities |
Effective from 2019
Leasing arrangements (lessee) –right-of-use assets / lease liabilities
(a) | Leases are recognized as a right-of-use |
(b) | Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. |
i) | Fixed payments, less any lease incentives receivable; |
ii) | The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option. |
(c) | At the commencement date, the right-of-use right-of-use right-of-use |
Prior to 2019
Leased assets / operating leases (lessee)
q) |
Impairment of non-financial assets |
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
r) |
|
s) |
|
Accounts payable are liabilities for purchases of raw materials, goods or services. The short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
|
(b) | The short-term accounts and notes payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. |
t) | Derecognition of financial liabilities |
u) | Provisions for deficiency compensation |
v) |
|
(a) | Short-term employee benefits |
(b) | Pensions |
i) | Defined contribution plans |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
ii) | Defined benefit plans |
1. | Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in the current period or prior periods. The liability recognized in the statements of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the statements of financial position date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The discount rate is determined by using the interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. |
2. | Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings. |
3. | Past service costs are recognized immediately in profit or loss. |
(c) | Termination benefits |
(d) | Employees’ compensation and directors’ remuneration |
w) |
|
(a)
(b) | For restricted shares where those shares do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognizes the fair value of the dividends received by employees who are expected to resign during the vesting period as a compensation cost at the date the dividends were declared. |
(c) | For restricted shares where employees do not need to pay to acquire those shares, if an employee resigns during the vesting period, the Group will recover and retire those shares at no cost. |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
x) |
|
(a) | The income tax expense for the period comprises current and deferred tax. Income tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the income tax is recognized in other comprehensive income or equity. |
(b) | The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the statements of financial position date in the countries where the Group and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional income tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the profit generated. |
(c) | Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated statements of financial position. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the statements of financial position date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled. |
(d) | Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each statements of financial position date, unrecognized and recognized deferred tax assets are reassessed. |
(e) | A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized. |
(f) | If a change in tax rate is enacted or substantively enacted, the Group recognizes the effect of the change immediately in the period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss. |
y) |
Capital stock |
(a) | Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares in net proceeds of tax are shown in equity as a deduction. |
(b) | Where the Company repurchases the Company’s shares that have been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders. |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
z) |
|
aa) |
|
(a) | The Group is primarily engaged in the customized assembly and testing services of high-integration and high-precision integrated circuits based on customer’s specification demand to create or enhance the product. When providing assembly and testing services, the Group considers: |
i) | Customer controls the provided raw materials and the Group receives the instruction from the customer on providing assembly and testing services and subsequent treatments. |
ii) | The Group provides assembly and testing services to create or enhance an asset which is solely provided and controlled by the customer. The Group has no right to transfer the asset for another use. |
(b) | The progress towards completion on assembly services, services for Liquid Crystal Display and other Flat-Panel Display Driver Semiconductors (“LCDD”) and Bumping are measured by the actual input costs relative to estimate total expected input costs. The progress towards completion on testing services is measured by the actual incurred testing volume. The Group |
bb) |
|
cc) | Operating segments |
dd) |
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
NotesCritical accounting estimates and assumptions
December 31, 2017, 2018 and 2019
5. |
|
|
|
Provisions for deficiency compensation
The Group is primarily engaged in the research, development, manufacturing, sale, and assembly and testing of high-integration and high-precision integrated circuits. In any cases where deficiencies in the assembly and testing services arise, the Group has to clarify the reason for deficiencies and attribute of responsibilities. The Group follows the guidance of IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” to determine warranty provisions. Since the timing and amount of these warranties are based on assumptions and estimates it requires management to make critical judgments.
|
Revenue recognition
|
|
|
6. |
Cash and cash equivalents |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Cash on hand and petty cash | 470 | �� | 450 | |||||
Checking accounts and demand deposits | 2,609,421 | 2,683,977 | ||||||
Time deposits | 1,503,760 | 3,221,749 | ||||||
4,113,651 | 5,906,176 | |||||||
a) |
The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. |
The Group engages mainly in the assembly and testing of semiconductors, memory modules and investing. In accordance with IFRS 8 “Operating Segments”, the Group’s segments include Testing, Assembly, Testing and Assembly for LCDD, Bumping and others as the five reportable segments.
b) |
|
The Group’s reportable segments are strategic business units which provide different products and services. The accounting policies adopted by the operating segments are the same as the accounting policies described in Note 2.
|
The Group recognized revenue based on the progress towards completion of performance obligation during the service period.
The segment information provided to the chief operating decision maker for the reportable segments is as follows:
2017 | ||||||||||||||||||||||||||||||||
Testing | Assembly | LCDD | Bumping | Others | Elimination | Total continuing operations | Discontinued operations | |||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
External customers | 4,838,246 | 5,259,281 | 4,789,869 | 3,053,459 | — | — | 17,940,855 | 227,095 | ||||||||||||||||||||||||
Inter-segment | — | — | 247 | — | 35,808 | (36,055 | ) | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total revenue | 4,838,246 | 5,259,281 | 4,790,116 | 3,053,459 | 35,808 | (36,055 | ) | 17,940,855 | 227,095 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Operating profit (loss) | 1,448,939 | (55,198 | ) | 1,285,495 | (336,123 | ) | (100,545 | ) | (2,687 | ) | 2,239,881 | (25,394 | ) | |||||||||||||||||||
Depreciation expenses | (673,393 | ) | (597,500 | ) | (1,048,587 | ) | (579,605 | ) | (503 | ) | 310 | (2,899,278 | ) | — | ||||||||||||||||||
Interest income | — | — | — | — | 53,123 | — | 53,123 | 464 | ||||||||||||||||||||||||
Interest expense | — | — | — | — | (190,425 | ) | — | (190,425 | ) | (2,414 | ) | |||||||||||||||||||||
Share of profit (loss) of associates | — | — | — | — | 1,347,851 | (1,527,342 | ) | (179,491 | ) | — | ||||||||||||||||||||||
Purchase of property, plant and equipment | 836,894 | 655,879 | 2,615,153 | 594,765 | — | — | 4,702,691 | — |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
2018 | ||||||||||||||||||||||||||||
Testing | Assembly | LCDD | Bumping | Others | Elimination | Total continuing operations | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
External customers | 4,790,097 | 4,679,676 | 5,694,720 | 3,315,534 | — | — | 18,480,027 | |||||||||||||||||||||
Inter-segment | — | — | — | — | 35,738 | (35,738 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total revenue | 4,790,097 | 4,679,676 | 5,694,720 | 3,315,534 | 35,738 | (35,738 | ) | 18,480,027 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Operating profit (loss) | 1,306,742 | (207,700 | ) | 1,226,755 | (202,497 | ) | (23,433 | ) | (146 | ) | 2,099,721 | |||||||||||||||||
Depreciation expenses | (769,660 | ) | (578,205 | ) | (1,400,784 | ) | (627,412 | ) | (518 | ) | — | (3,376,579 | ) | |||||||||||||||
Interest income | — | — | — | — | 49,971 | — | 49,971 | |||||||||||||||||||||
Interest expense | — | — | — | — | (152,416 | ) | — | (152,416 | ) | |||||||||||||||||||
Share of profit (loss) of associates | — | — | — | — | (668,377 | ) | 368,276 | (300,101 | ) | |||||||||||||||||||
Purchase of property, plant and equipment | 1,563,919 | 321,976 | 2,732,141 | 327,251 | 283 | — | 4,945,570 |
2019 | ||||||||||||||||||||||||||||
Testing | Assembly | LCDD | Bumping | Others | Elimination | Total continuing operations | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
External customers | 4,257,800 | 5,148,877 | 6,922,205 | 4,008,999 | — | — | 20,337,881 | |||||||||||||||||||||
Inter-segment | — | — | — | — | 32,808 | (32,808 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total revenue | 4,257,800 | 5,148,877 | 6,922,205 | 4,008,999 | 32,808 | (32,808 | ) | 20,337,881 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Operating profit (loss) | 709,142 | (227,096 | ) | 1,740,720 | 232,404 | 1,931 | 18 | 2,457,119 | ||||||||||||||||||||
Depreciation expenses | (802,740 | ) | (521,311 | ) | (1,796,951 | ) | (604,553 | ) | (6,359 | ) | — | (3,731,914 | ) | |||||||||||||||
Interest income | — | — | — | — | 64,368 | — | 64,368 | |||||||||||||||||||||
Interest expense | — | — | — | — | (171,075 | ) | — | (171,075 | ) | |||||||||||||||||||
Share of profit (loss) of associates | — | — | — | — | (370,351 | ) | 215,425 | (154,926 | ) | |||||||||||||||||||
Purchase of property, plant and equipment | 764,105 | 548,063 | 3,077,806 | 506,635 | 47 | — | 4,896,656 |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
The application of IFRS 16 had the following impact on the segment information in 2019:
Testing | Assembly | LCDD | Bumping | Others | Elimination | Total continuing operations | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Depreciation expenses increased | 7,631 | 6,035 | 10,703 | 1,137 | 5,808 | — | 31,314 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Interest expense increased | 4,207 | 3,260 | 5,862 | 492 | 319 | — | 14,140 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers and segment income (loss) reported to the chief operating decision maker are measured using the same method as for revenue and operating profit in the financial statements. Thus, no reconciliation is needed.
No cash and |
2017 | 2018 | 2019 | ||||||||||||||||||||||
NT$000 | % | NT$000 | % | NT$000 | % | |||||||||||||||||||
Testing | 4,838,246 | 27 | 4,790,097 | 26 | 4,257,800 | 21 | ||||||||||||||||||
Assembly | 5,259,281 | 29 | 4,679,676 | 25 | 5,148,877 | 25 | ||||||||||||||||||
LCDD | 4,789,869 | 27 | 5,694,720 | 31 | 6,922,205 | 34 | ||||||||||||||||||
Bumping | 3,053,459 | 17 | 3,315,534 | 18 | 4,008,999 | 20 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
17,940,855 | 100 | 18,480,027 | 100 | 20,337,881 | 100 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Revenue | ||||||||||||
ROC | 13,152,419 | 14,751,766 | 15,875,027 | |||||||||
Japan | 2,257,296 | 1,825,479 | 1,905,032 | |||||||||
Singapore | 1,798,585 | 1,143,661 | 1,333,114 | |||||||||
People’s Republic of China (“PRC”) | 162,579 | 163,831 | 789,496 | |||||||||
Others | 569,976 | 595,290 | 435,212 | |||||||||
|
|
|
|
|
| |||||||
17,940,855 | 18,480,027 | 20,337,881 | ||||||||||
|
|
|
|
|
|
2018 | 2019 | |||||||
NT$000 | NT$000 | |||||||
Non-current assets | ||||||||
ROC | 16,847,172 | 18,727,979 | ||||||
Others | 1,009 | 5,659 | ||||||
|
|
|
| |||||
16,848,181 | 18,733,638 | |||||||
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
The information on the major customers which constituted more than 10% of the Group’s total revenue for the years ended December 31, 2017, 2018 and 2019 is as follows:
2017 | 2018 | 2019 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Customers | ||||||||||||||||||||||||
Customer A | 3,434,873 | 19 | 3,794,991 | 21 | 4,756,755 | 23 | ||||||||||||||||||
Customer K | 2,742,882 | 15 | 2,637,053 | 14 | 2,419,612 | 12 | ||||||||||||||||||
Customer C | 1,530,209 | 9 | 1,957,467 | 11 | 2,048,260 | 10 | ||||||||||||||||||
Customer X | 999,117 | 6 | 1,328,752 | 7 | 1,977,427 | 10 | ||||||||||||||||||
Customer I | 1,798,111 | 10 | 1,101,956 | 6 | 1,315,527 | 6 |
|
The Group has recognized the following contract assets and liabilities in relation to revenue from contracts with customers:
January 1, 2018 | December 31, 2018 | December 31, 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Contract assets | 254,997 | 299,835 | 377,869 | |||||||||
|
|
|
|
|
| |||||||
Contract liabilities (Advance payments) | 1,152 | 1,432 | 1,231 | |||||||||
|
|
|
|
|
|
Contract assets have increased as the Group has completed more services in excess of customer’s payment. The information relating to loss allowance for contract assets is provided in Note 33 a).
Revenue recognized in the current reporting period amounted to NT$766 thousand was related to carried-forward contract liabilities for performance obligations not satisfied in prior year.
All of the service contracts are for periods of one year or less. As permitted under IFRS 15, the transaction price allocated to these unsatisfied contracts is not disclosed. As of December 31, 2019, the Group did not recognized an asset in relation to costs to fulfill a service contract.
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Change of finished goods and work in process | 31,977 | — | — | |||||||||
Raw materials and supplies used | 3,036,350 | 3,079,909 | 3,575,283 | |||||||||
Employee benefit expenses | 5,895,778 | 5,606,833 | 6,075,773 | |||||||||
Depreciation expenses | 2,899,278 | 3,376,579 | 3,731,914 | |||||||||
Others | 4,530,425 | 4,464,499 | 4,590,720 | |||||||||
|
|
|
|
|
| |||||||
Total operating costs and expenses | 16,393,808 | 16,527,820 | 17,973,690 | |||||||||
|
|
|
|
|
| |||||||
Employee benefit expenses | ||||||||||||
Salaries | 4,847,433 | 4,628,039 | 5,114,790 | |||||||||
Director’s remuneration | 27,276 | 18,456 | 26,266 | |||||||||
Labor and health insurance | 390,788 | 406,111 | 422,106 | |||||||||
Pension | 198,502 | 201,567 | 194,173 | |||||||||
Share-based payments | 123,021 | 41,043 | 822 | |||||||||
Other personnel expenses | 308,758 | 311,617 | 317,616 | |||||||||
|
|
|
|
|
| |||||||
5,895,778 | 5,606,833 | 6,075,773 | ||||||||||
|
|
|
|
|
|
|
7. |
|
|
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Gain on disposal of property, plant and equipment, net | 132,777 | 14,274 | 20,271 | |||||||||
Impairment loss on property, plant and equipment | (956 | ) | — | (9,938 | ) | |||||||
Gain on disposal of scrapped materials | 27,940 | 59,380 | 43,652 | |||||||||
Gain on disposal of items purchased on behalf of others | 26,417 | 31,268 | 15,080 | |||||||||
Royalty income | 11,998 | 43,224 | 12,336 | |||||||||
Insurance compensation income | 486,858 | 147 | 10,435 | |||||||||
Others | 7,800 | (779 | ) | 1,092 | ||||||||
|
|
|
|
|
| |||||||
692,834 | 147,514 | 92,928 | ||||||||||
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Interest expenses | ||||||||||||
Bank loans | 208,486 | 170,476 | 171,840 | |||||||||
Lease liabilities | — | — | 14,349 | |||||||||
Lease obligations payable | 708 | 482 | — | |||||||||
Less: Amounts capitalized in qualifying assets | (18,769 | ) | (18,542 | ) | (15,114 | ) | ||||||
|
|
|
|
|
| |||||||
190,425 | 152,416 | 171,075 | ||||||||||
Finance expense | 26,858 | 37,832 | 9,187 | |||||||||
|
|
|
|
|
| |||||||
217,283 | 190,248 | 180,262 | ||||||||||
|
|
|
|
|
|
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Interest income | ||||||||||||
Bank deposits | 53,123 | 49,051 | 59,901 | |||||||||
Financial assets at amortized cost | — | 920 | 4,467 | |||||||||
Foreign exchange gains (losses), net | (418,970 | ) | 93,104 | (154,993 | ) | |||||||
Gain on valuation of financial assets at fair value through profit or loss | 637 | 1,485 | 1,317 | |||||||||
Rental income | 11,075 | 7,819 | 9,249 | |||||||||
Dividend income | — | 571 | 585 | |||||||||
Reimbursement of ADSs service charge | 23,707 | 13,269 | 4,292 | |||||||||
Grant income | — | — | 925 | |||||||||
Others | 2,808 | 6,851 | 970 | |||||||||
|
|
|
|
|
| |||||||
(327,620 | ) | 173,070 | (73,287 | ) | ||||||||
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Current income tax: | ||||||||||||
Current income tax on profits for the period | 125,376 | 326,057 | 408,788 | |||||||||
Income tax on unappropriated retained earnings | 246,684 | 28,165 | 74,540 | |||||||||
Prior year income tax under (over) estimation | 67,885 | 3,729 | (5,016 | ) | ||||||||
|
|
|
|
|
| |||||||
Total current income tax | 439,945 | 357,951 | 478,312 | |||||||||
|
|
|
|
|
| |||||||
Deferred income tax: | ||||||||||||
Relating to origination and reversal of temporary differences | 110,542 | 101,441 | 35,367 | |||||||||
Impact of change in tax rate | — | (2,774 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total deferred income tax | 110,542 | 98,667 | 35,367 | |||||||||
|
|
|
|
|
| |||||||
Income tax expense | 550,487 | 456,618 | 513,679 | |||||||||
|
|
|
|
|
|
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | — | 17,005 | (7,016 | ) | ||||||||
Remeasurement of defined benefit obligations | 8,642 | (11,992 | ) | 4,183 | ||||||||
Impact of change in tax rate | — | (887 | ) | — | ||||||||
|
|
|
|
|
| |||||||
8,642 | 4,126 | (2,833 | ) | |||||||||
|
|
|
|
|
|
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Tax calculated based on profit before tax and statutory tax rate | 566,649 | 356,488 | 606,917 | |||||||||
Expenses disallowed by tax regulation | 10,185 | 14,689 | 3,055 | |||||||||
Tax exempted (income) expenses by tax regulation | (256,788 | ) | 66,353 | (165,979 | ) | |||||||
Temporary differences not recognized as deferred tax assets | (85,168 | ) | (10,951 | ) | (608 | ) | ||||||
Prior year income tax under (over) estimation | 67,885 | 3,729 | (5,016 | ) | ||||||||
Income tax on unappropriated retained earnings | 246,684 | 28,165 | 74,540 | |||||||||
Impact of change in tax rate | — | (2,774 | ) | — | ||||||||
Effect of different tax rates in countries in which the Group operates | 1,040 | 919 | 770 | |||||||||
|
|
|
|
|
| |||||||
Income tax expense | 550,487 | 456,618 | 513,679 | |||||||||
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
2018 | ||||||||||||||||||||
January 1 | Effects on initial application of IFRS 9 and IFRS 15 | Recognized in profit or loss | Recognized in other comprehensive income | December 31 | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
Deferred tax assets | ||||||||||||||||||||
Loss on inventories | 9,132 | (770 | ) | (1,130 | ) | — | 7,232 | |||||||||||||
Property, plant and equipment | 55,494 | — | 8,689 | — | 64,183 | |||||||||||||||
Provisions | 21,643 | — | (9,247 | ) | — | 12,396 | ||||||||||||||
Deferred revenue | 39,485 | — | (5,329 | ) | — | 34,156 | ||||||||||||||
Net defined benefit liability | 78,451 | — | 7,889 | 14,403 | 100,743 | |||||||||||||||
Unrealized exchange losses | 8,167 | 144 | (4,736 | ) | — | 3,575 | ||||||||||||||
Investment tax credit | — | — | 4,420 | — | 4,420 | |||||||||||||||
Others | — | — | 11 | — | 11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 212,372 | (626 | ) | 567 | 14,403 | 226,716 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Deferred tax liabilities | ||||||||||||||||||||
Property, plant and equipment | (174,293 | ) | — | (107,301 | ) | — | (281,594 | ) | ||||||||||||
Contract assets | — | (8,067 | ) | 8,067 | — | — | ||||||||||||||
Financial assets at fair value through other comprehensive income | — | (8,636 | ) | — | (18,529 | ) | (27,165 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | (174,293 | ) | (16,703 | ) | (99,234 | ) | (18,529 | ) | (308,759 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Information presented on statements of financial position: | ||||||||||||||||||||
Deferred tax assets | 212,372 | 226,716 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Deferred tax liabilities | (174,293 | ) | (308,759 | ) | ||||||||||||||||
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
2019 | ||||||||||||||||
January 1 | Recognized in profit or loss | Recognized in other comprehensive income | December 31 | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Deferred tax assets | ||||||||||||||||
Loss on inventories | 7,232 | 5,468 | — | 12,700 | ||||||||||||
Property, plant and equipment | 64,183 | (25,515 | ) | — | 38,668 | |||||||||||
Provisions | 12,396 | (6,796 | ) | — | 5,600 | |||||||||||
Deferred revenue | 34,156 | (6,506 | ) | — | 27,650 | |||||||||||
Net defined benefit liability | 100,743 | (3,948 | ) | (4,183 | ) | 92,612 | ||||||||||
Unrealized exchange losses | 3,575 | 13,721 | — | 17,296 | ||||||||||||
Investment tax credit | 4,420 | (4,420 | ) | — | — | |||||||||||
Others | 11 | 15 | — | 26 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 226,716 | (27,981 | ) | (4,183 | ) | 194,552 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Deferred tax liabilities | ||||||||||||||||
Property, plant and equipment | (281,594 | ) | (7,386 | ) | — | (288,980 | ) | |||||||||
Financial assets at fair value through other comprehensive income | (27,165 | ) | — | 7,016 | (20,149 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | (308,759 | ) | (7,386 | ) | 7,016 | (309,129 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Information presented on statements of financial position | ||||||||||||||||
Deferred tax assets | 226,716 | 194,552 | ||||||||||||||
|
|
|
| |||||||||||||
Deferred tax liabilities | (308,759 | ) | (309,129 | ) | ||||||||||||
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
2017 | ||||||||||||
Amount after income tax | Weighted average number of ordinary shares outstanding | Earnings per share | ||||||||||
Basic earnings per share | NT$000 | In thousands | NT$ | |||||||||
Profit attributable to: | ||||||||||||
Equity holders of the Company | ||||||||||||
- Continuing operations | 981,929 | 1.16 | ||||||||||
- Discontinued operations | 1,814,953 | 2.14 | ||||||||||
|
|
|
| |||||||||
Equity holders of the Company | 2,796,882 | 846,686 | 3.30 | |||||||||
|
|
|
|
|
| |||||||
Diluted earnings per share | ||||||||||||
Assumed conversion of all dilutive potential ordinary shares: | ||||||||||||
Employees’ compensations | 14,034 | |||||||||||
Restricted shares | 5,075 | |||||||||||
|
| |||||||||||
Profit attributable to: | ||||||||||||
Equity holders of the Company | ||||||||||||
- Continuing operations | 981,929 | 1.13 | ||||||||||
- Discontinued operations | 1,814,953 | 2.10 | ||||||||||
|
|
|
| |||||||||
Equity holders of the Company | 2,796,882 | 865,795 | 3.23 | |||||||||
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
2018 | ||||||||||||
Amount after income tax | Weighted average number of ordinary shares outstanding | Earnings per share | ||||||||||
Basic earnings per share | NT$000 | In thousands | NT$ | |||||||||
Profit attributable to the equity holders of the Company | 1,325,824 | 802,725 | 1.65 | |||||||||
|
|
|
|
|
| |||||||
Diluted earnings per share | ||||||||||||
Assumed conversion of all dilutive potential ordinary shares: | ||||||||||||
Employees’ compensations | 7,626 | |||||||||||
Restricted shares | 3,356 | |||||||||||
|
| |||||||||||
Profit attributable to the equity holders of the Company | 1,325,824 | 813,707 | 1.63 | |||||||||
|
|
|
|
|
|
2019 | ||||||||||||
Amount after income tax | Weighted average number of ordinary shares outstanding | Earnings per share | ||||||||||
Basic earnings per share | NT$000 | In thousands | NT$ | |||||||||
Profit attributable to the equity holders of the Company | 2,508,574 | 727,111 | 3.45 | |||||||||
|
|
|
|
|
| |||||||
Diluted earnings per share | ||||||||||||
Assumed conversion of all dilutive potential ordinary shares: | ||||||||||||
Employees’ compensations | 9,879 | |||||||||||
Restricted shares | 126 | |||||||||||
|
| |||||||||||
Profit attributable to the equity holders of the company | 2,508,574 | 737,116 | 3.40 | |||||||||
|
|
|
|
|
|
|
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Financial assets mandatorily measured at fair value through profit or loss | ||||||||
Foreign partnership interests | 10,940 | 10,940 | ||||||
Valuation adjustment | 531 | 98 | ||||||
|
|
|
| |||||
11,471 | 11,038 | |||||||
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Current: | ||||||||
Financial assets mandatorily measured at fair value through profit or loss | ||||||||
Listed stocks | 46,512 | 339,679 | ||||||
Valuation adjustment | 6,608 | 20,281 | ||||||
53,120 | 359,960 | |||||||
Non-current: | ||||||||
Financial assets mandatorily measured at fair value through profit or loss | ||||||||
Foreign partnership interests | 10,940 | 0 | ||||||
Valuation adjustment | (572 | ) | 0 | |||||
10,368 | 0 | |||||||
a) | Amounts recognized in profit or loss in relation to the financial assets at fair value through profit or loss are listed below: |
2018 | 2019 | |||||||
NT$000 | NT$000 | |||||||
Financial assets mandatorily measured at fair value through profit or loss | ||||||||
Foreign partnership interests | 38 | (433 | ) | |||||
Beneficiary certificates* | 1,396 | 1,750 | ||||||
Derivative instruments | 51 | — | ||||||
|
|
|
| |||||
1,485 | 1,317 | |||||||
|
|
|
|
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Financial assets mandatorily measured at fair value through profit or loss | ||||||||||||
Beneficiary certificates* | 1,750 | 18,077 | 2,530 | |||||||||
Listed stocks | 0 | 6,608 | 13,673 | |||||||||
Foreign partnership interests | (433 | ) | (670 | ) | (941 | ) | ||||||
1,317 | 24,015 | 15,262 | ||||||||||
* | Beneficiary certificates represent money market funds the Company held during the reporting period. As of December 31, |
b) | No financial assets at FVTPL were pledged to others. |
c) | Information relating to price risk of financial assets at FVTPL is provided in Note 43. |
8. | Financial assets at amortized cost |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Current: | ||||||||
Time deposits | 206,482 | 29,239 | ||||||
Non-current: | ||||||||
Restricted bank deposits | 48,319 | 37,539 | ||||||
a) | Amounts recognized in profit or loss in relation to financial assets at amortized cost are listed below: |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Interest income | 4,467 | 2,206 | 1,187 | |||||||||
b) | Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group is the carrying amount at the end of each reporting period. |
c) | Information about the financial assets at amortized cost that were pledged to others as collateral is provided in Note 38. |
d) | Information relating to credit risk of financial assets at amortized cost is provided in Note 43. |
9. | Accounts receivable |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Accounts receivable | 5,365,776 | 6,346,156 | ||||||
Less: Loss allowance | (1,620 | ) | (1,910 | ) | ||||
5,364,156 | 6,344,246 | |||||||
a) | The Group’s credit term granted to customers is 30~90 days. Receivables do not bear interest. The loss allowance is determined based on the credit quality of customers. Information relating to credit risk is provided in Note 43. |
b) | The aging analysis of accounts receivable based on past due date are as follows: |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Current | 5,272,208 | 6,327,791 | ||||||
Within 1 month | 93,568 | 18,365 | ||||||
5,365,776 | 6,346,156 | |||||||
c) | As of December 31, 2020 and 2021, accounts receivable were all from contracts with customers. And as of January 1, 2020, the balance of accounts receivable from contracts with customers was NT$4,452,904 thousand. |
d) | Without taking into account of any collateral held or other credit enhancements, the amount that best reflects the Group’s maximum exposure to credit risk in respect of the accounts receivable is the carrying amount at the end of each reporting period. |
e) | No accounts receivable of the Group were pledged to others. |
10. | Inventories |
December 31, 2020 | ||||||||||||
Cost | Allowance for impairment losses | Carrying amount | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Raw materials | 2,181,890 | (79,815 | ) | 2,102,075 | ||||||||
December 31, 2021 | ||||||||||||
Cost | Allowance for impairment losses | Carrying amount | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Raw materials | 3,328,763 | (121,586 | ) | 3,207,177 | ||||||||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Cost of revenue | 16,372,032 | 17,957,568 | 20,103,735 | |||||||||
Loss on abandonment | 12,369 | 5,323 | 552 | |||||||||
Allowance for inventory valuation and obsolescence loss | 27,341 | 16,317 | 41,770 | |||||||||
16,411,742 | 17,979,208 | 20,146,057 | ||||||||||
a) | Allowance for inventory valuation and obsolescence loss was recognized due to the change in net realizable value. |
b) | No inventories of the Group were pledged to others. |
11. | Non-current financial assets at fair value through other comprehensive income |
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Designation of equity instruments | ||||||||
Foreign unlisted stocks | 38,534 | 38,534 | ||||||
Valuation adjustment | 135,823 | 83,274 | ||||||
|
|
|
| |||||
174,357 | 121,808 | |||||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Designation of equity instruments | ||||||||
Foreign unlisted stocks | 38,534 | 38,534 | ||||||
Valuation adjustment | 223,473 | 345,987 | ||||||
262,007 | 384,521 | |||||||
a) | Based on the Group’s business model, the foreign unlisted stocks held for strategic investments were elected to classify as “Financial assets at fair value through other comprehensive income”. As of December 31, |
b) | Amounts recognized in other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below: |
2018 | 2019 | |||||||
NT$000 | NT$000 | |||||||
Financial assets at fair value through other comprehensive income | ||||||||
Foreign unlisted stocks | 85,022 | (52,549 | ) | |||||
|
|
|
|
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Financial assets at fair value through other comprehensive income | ||||||||||||
Foreign unlisted stocks | (52,549 | ) | 140,199 | 122,514 | ||||||||
c) |
NaN financial assets at fair value through other comprehensive income were pledged to others. |
d) | Information about |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
12. |
Investments accounted for using equity method |
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
JMC ELECTRONICS CO., LTD. (“JMC”) | 406,792 | 249,793 | ||||||
Unimos Microelectronics (Shanghai) Co., Ltd. (“Unimos Shanghai”) | 3,456,949 | 3,143,117 | ||||||
|
|
|
| |||||
3,863,741 | 3,392,910 | |||||||
|
|
|
|
Associates | December 31, 2020 | December 31, 2021 | ||||||
NT$000 | NT$000 | |||||||
JMC ELECTRONICS CO., LTD. (“JMC”) | 250,769 | 304,437 | ||||||
Unimos Microelectronics (Shanghai) Co., Ltd. (“Unimos Shanghai”) | 3,020,908 | 3,596,012 | ||||||
3,271,677 | 3,900,449 | |||||||
a) |
The carrying amount of the Group’s interests in |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
(Loss) profit for the year from continuing operations | (154,926 | ) | (147,329 | ) | 625,733 | |||||||
Other comprehensive income, net of income tax | 5,732 | 23,143 | 28,843 | |||||||||
Total comprehensive (loss) income | (149,194 | ) | (124,186 | ) | 654,576 | |||||||
b) | JMC has quoted market prices. As of December 31, |
c) |
|
To further strengthen financial structure, increase balance of working capital and reduce debt ratio, the Company’s Board of Directors adopted a resolution on April 2, 2019 to dispose of 9,100,000 common shares of JMC, which reduced the shareholding of equity investment in JMC to 10%. The disposal of shares was completed on April 8, 2019 for cash consideration of NT$1,180,179 thousand, and the Company recognized gain on disposal of investment in associates amounted to NT$973,609 thousand. JMC is still recognized as investment |
|
|
Shareholding ratio | ||||||||||
Company name | Principal place of business | December 31, 2018 | December 31, 2019 | Nature of relationship | Method of measurement | |||||
JMC | Kaohsiung, Taiwan | 19.10% | 10.00% | Strategic Investee | Equity method | |||||
Unimos Shanghai | Shanghai, PRC | 45.02% | 45.02% | Strategic Investee | Equity method |
13. |
Property, plant and equipment, net |
|
|
Statements
and
equipment
progress and
equipment to
be inspected 452,738 10,254,531 48,274,171 4,402,711 2,610,893 1,069,892 67,064,936 0 (6,345,800 ) (38,042,078 ) (3,660,532 ) (2,196,905 ) 0 (50,245,315 ) 452,738 3,908,731 10,232,093 742,179 413,988 1,069,892 16,819,621 — — — — (31,904 ) — (31,904 ) 452,738 3,908,731 10,232,093 742,179 382,084 1,069,892 16,787,717 0 116,238 2,334,358 781,465 224,287 1,440,308 4,896,656 0 0 (16,033 ) (9,336 ) (416 ) 0 (25,785 ) 0 455,792 1,111,715 7,880 25,042 (1,573,811 ) 26,618 0 (384,832 ) (2,489,070 ) (625,712 ) (196,201 ) 0 (3,695,815 ) — — (9,938 ) — — — (9,938 ) — — (4 ) — (5 ) — (9 ) 452,738 10,821,972 51,244,512 5,008,321 1,937,755 936,389 70,401,687 0 (6,726,043 ) (40,081,391 ) (4,111,845 ) (1,502,964 ) 0 (52,422,243 )
|
|
|
Statements2021
2020 | ||||||||||||||||||||||||||||
Land | Buildings | Machinery and equipment | Tools | Others | Construction in progress and equipment to be inspected | Total | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
January 1 | ||||||||||||||||||||||||||||
Cost | 452,738 | 10,821,972 | 51,244,512 | 5,008,321 | 1,937,755 | 936,389 | 70,401,687 | |||||||||||||||||||||
Accumulated depreciation and impairment | 0 | (6,726,043 | ) | (40,081,391 | ) | (4,111,845 | ) | (1,502,964 | ) | 0 | (52,422,243 | ) | ||||||||||||||||
452,738 | 4,095,929 | 11,163,121 | 896,476 | 434,791 | 936,389 | 17,979,444 | ||||||||||||||||||||||
January 1 | 452,738 | 4,095,929 | 11,163,121 | 896,476 | 434,791 | 936,389 | 17,979,444 | |||||||||||||||||||||
Additions | 0 | 132,572 | 592,565 | 409,832 | 142,776 | 2,855,870 | 4,133,615 | |||||||||||||||||||||
Disposals | 0 | 0 | (8,940 | ) | (3,121 | ) | (7,297 | ) | 0 | (19,358 | ) | |||||||||||||||||
Reclassifications | 0 | 258,421 | 2,336,238 | 398,798 | 159,195 | (3,152,652 | ) | 0 | ||||||||||||||||||||
Depreciation expenses | 0 | (394,636 | ) | (2,734,667 | ) | (749,624 | ) | (220,066 | ) | 0 | (4,098,993 | ) | ||||||||||||||||
Exchange adjustment | — | — | (20 | ) | — | (2 | ) | — | (22 | ) | ||||||||||||||||||
December 31 | 452,738 | 4,092,286 | 11,348,297 | 952,361 | 509,397 | 639,607 | 17,994,686 | |||||||||||||||||||||
December 31 | ||||||||||||||||||||||||||||
Cost | 452,738 | 11,212,129 | 53,246,474 | 5,451,547 | 2,185,299 | 639,607 | 73,187,794 | |||||||||||||||||||||
Accumulated depreciation and impairment | 0 | (7,119,843 | ) | (41,898,177 | ) | (4,499,186 | ) | (1,675,902 | ) | 0 | (55,193,108 | ) | ||||||||||||||||
452,738 | 4,092,286 | 11,348,297 | 952,361 | 509,397 | 639,607 | 17,994,686 | ||||||||||||||||||||||
Unimos Shanghai | ||||||||||||
Year ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Revenue | 1,141,415 | 1,334,196 | 1,584,648 | |||||||||
|
|
|
|
|
| |||||||
Loss for the year from continuing operations | (348,472 | ) | (629,303 | ) | (352,008 | ) | ||||||
Other comprehensive income (loss), net of income tax | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total comprehensive loss | (348,472 | ) | (629,303 | ) | (352,008 | ) | ||||||
|
|
|
|
|
| |||||||
Dividends received from the associate | — | — | — | |||||||||
|
|
|
|
|
|
According to IFRS 5“Non-current Assets Held for Sale and Discontinued Operations”, total comprehensive income of Unimos Shanghai for the three months ended March 31, 2017 is included in the Group’s consolidated statements of comprehensive income with the adjustments of ceasing to recognize depreciation and amortization expenses and the elimination of inter-companies’ transactions. Information about discontinued operations is provided in Note 20.
|
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Current | ||||||||
Time deposits | 169,168 | 168,970 | ||||||
|
|
|
| |||||
Non-current | ||||||||
Time deposits | 30,715 | — | ||||||
Restricted bank deposits | 68,388 | 68,450 | ||||||
|
|
|
| |||||
99,103 | 68,450 | |||||||
|
|
|
|
|
2018 | 2019 | |||||||
NT$000 | NT$000 | |||||||
Interest income | 920 | 4,467 | ||||||
|
|
|
|
|
|
|
|
2018 | ||||||||||||||||||||||||||||
Land | Buildings | Machinery and equipment | Tools | Others | Construction in progress and equipment to be inspected | Total | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
January 1 | ||||||||||||||||||||||||||||
Cost | 452,738 | 9,809,970 | 45,778,207 | 4,004,703 | 2,624,083 | 968,719 | 63,638,420 | |||||||||||||||||||||
Accumulated depreciation and impairment | — | (5,890,884 | ) | (36,964,480 | ) | (3,314,234 | ) | (2,203,511 | ) | — | (48,373,109 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
452,738 | 3,919,086 | 8,813,727 | 690,469 | 420,572 | 968,719 | 15,265,311 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
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|
|
| |||||||||||||||
January 1 | 452,738 | 3,919,086 | 8,813,727 | 690,469 | 420,572 | 968,719 | 15,265,311 | |||||||||||||||||||||
Additions | — | 247,186 | 2,445,313 | 591,229 | 172,652 | 1,489,190 | 4,945,570 | |||||||||||||||||||||
Disposals | — | — | (904 | ) | (11,745 | ) | (2,067 | ) | — | (14,716 | ) | |||||||||||||||||
Reclassifications | — | 199,724 | 1,154,663 | 7,604 | 26,026 | (1,388,017 | ) | — | ||||||||||||||||||||
Depreciation expenses | — | (457,265 | ) | (2,180,718 | ) | (535,378 | ) | (203,218 | ) | — | (3,376,579 | ) | ||||||||||||||||
Exchange adjustment | — | — | 12 | — | 23 | — | 35 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
December 31 | 452,738 | 3,908,731 | 10,232,093 | 742,179 | 413,988 | 1,069,892 | 16,819,621 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
December 31 | ||||||||||||||||||||||||||||
Cost | 452,738 | 10,254,531 | 48,274,171 | 4,402,711 | 2,610,893 | 1,069,892 | 67,064,936 | |||||||||||||||||||||
Accumulated depreciation and impairment | — | (6,345,800 | ) | (38,042,078 | ) | (3,660,532 | ) | (2,196,905 | ) | — | (50,245,315 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
452,738 | 3,908,731 | 10,232,093 | 742,179 | 413,988 | 1,069,892 | 16,819,621 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
2019 | ||||||||||||||||||||||||||||
Land | Buildings | Machinery and equipment | Tools | Others | Construction in progress and equipment to be inspected | Total | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
January 1 | ||||||||||||||||||||||||||||
Cost | 452,738 | 10,254,531 | 48,274,171 | 4,402,711 | 2,610,893 | 1,069,892 | 67,064,936 | |||||||||||||||||||||
Accumulated depreciation and impairment | — | (6,345,800 | ) | (38,042,078 | ) | (3,660,532 | ) | (2,196,905 | ) | — | (50,245,315 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
452,738 | 3,908,731 | 10,232,093 | 742,179 | 413,988 | 1,069,892 | 16,819,621 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
January 1 | 452,738 | 3,908,731 | 10,232,093 | 742,179 | 413,988 | 1,069,892 | 16,819,621 | |||||||||||||||||||||
Effects on initial application of IFRS 16 | — | — | — | — | (31,904 | ) | — | (31,904 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted balance at January 1 | 452,738 | 3,908,731 | 10,232,093 | 742,179 | 382,084 | 1,069,892 | 16,787,717 | |||||||||||||||||||||
Additions | — | 116,238 | 2,334,358 | 781,465 | 224,287 | 1,440,308 | 4,896,656 | |||||||||||||||||||||
Disposals | — | — | (16,033 | ) | (9,336 | ) | (416 | ) | — | (25,785 | ) | |||||||||||||||||
Reclassifications | — | 455,792 | 1,111,715 | 7,880 | 25,042 | (1,573,811 | ) | 26,618 | ||||||||||||||||||||
Depreciation expenses | — | (384,832 | ) | (2,489,070 | ) | (625,712 | ) | (196,201 | ) | — | (3,695,815 | ) | ||||||||||||||||
Impairment losses | — | — | (9,938 | ) | — | — | — | (9,938 | ) | |||||||||||||||||||
Exchange adjustment | — | — | (4 | ) | — | (5 | ) | — | (9 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
December 31 | 452,738 | 4,095,929 | 11,163,121 | 896,476 | 434,791 | 936,389 | 17,979,444 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
December 31 | ||||||||||||||||||||||||||||
Cost | 452,738 | 10,821,972 | 51,244,512 | 5,008,321 | 1,937,755 | 936,389 | 70,401,687 | |||||||||||||||||||||
Accumulated depreciation and impairment | — | (6,726,043 | ) | (40,081,391 | ) | (4,111,845 | ) | (1,502,964 | ) | — | (52,422,243 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
452,738 | 4,095,929 | 11,163,121 | 896,476 | 434,791 | 936,389 | 17,979,444 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 | ||||||||||||||||||||||||||||
Land | Buildings | Machinery and equipment | Tools | Others | Construction in progress and equipment to be inspected | Total | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
January 1 | ||||||||||||||||||||||||||||
Cost | 452,738 | 11,212,129 | 53,246,474 | 5,451,547 | 2,185,299 | 639,607 | 73,187,794 | |||||||||||||||||||||
Accumulated depreciation and impairment | 0 | (7,119,843 | ) | (41,898,177 | ) | (4,499,186 | ) | (1,675,902 | ) | 0 | (55,193,108 | ) | ||||||||||||||||
452,738 | 4,092,286 | 11,348,297 | 952,361 | 509,397 | 639,607 | 17,994,686 | ||||||||||||||||||||||
January 1 | 452,738 | 4,092,286 | 11,348,297 | 952,361 | 509,397 | 639,607 | 17,994,686 | |||||||||||||||||||||
Additions | 0 | 1,345 | 11,829 | 407 | 189 | 6,538,932 | 6,552,702 | |||||||||||||||||||||
Disposals | 0 | 0 | (66,873 | ) | (9,502 | ) | 0 | 0 | (76,375 | ) | ||||||||||||||||||
Reclassifications | 0 | 673,208 | 4,890,400 | 690,346 | 241,656 | (6,495,610 | ) | 0 | ||||||||||||||||||||
Depreciation expenses | 0 | (423,283 | ) | (2,896,612 | ) | (795,622 | ) | (239,515 | ) | 0 | (4,355,032 | ) | ||||||||||||||||
Impairment losses | — | — | (4,843 | ) | — | — | — | (4,843 | ) | |||||||||||||||||||
Exchange adjustment | — | — | (13 | ) | — | (4 | ) | — | (17 | ) | ||||||||||||||||||
December 31 | 452,738 | 4,343,556 | 13,282,185 | 837,990 | 511,723 | 682,929 | 20,111,121 | |||||||||||||||||||||
December 31 | ||||||||||||||||||||||||||||
Cost | 452,738 | 11,877,419 | 57,176,339 | 5,574,316 | 2,345,204 | 682,929 | 78,108,945 | |||||||||||||||||||||
Accumulated depreciation and impairment | 0 | (7,533,863 | ) | (43,894,154 | ) | (4,736,326 | ) | (1,833,481 | ) | 0 | (57,997,824 | ) | ||||||||||||||||
452,738 | 4,343,556 | 13,282,185 | 837,990 | 511,723 | 682,929 | 20,111,121 | ||||||||||||||||||||||
a) | Amount of borrowing costs capitalized as part of property, plant and equipment and the range of the interest rates for such capitalization are as follows: |
2018 | 2019 | |||||||
NT$000 | NT$000 | |||||||
Amount of interest capitalized | 18,542 | 15,114 | ||||||
Range of the interest rates for capitalization | 1.7582 | % | 1.7822 | % |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Amount of interest capitalized | 15,114 | 9,762 | 11,193 | |||||||||
Range of the interest rates for capitalization | 1.7822 | % | 1.4909 | % | 1.1358 | % |
b) | Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note |
14. |
|
Effective from 2019
a) | The Group leases various assets, including land, buildings, machinery and equipment, and others. Lease agreements are typically made for periods of |
b) | The carrying amount of right-of-use |
December 31, 2019 | 2019 | |||||||
Carrying amount | Depreciation expenses | |||||||
NT$000 | NT$000 | |||||||
Land | 669,967 | (22,657 | ) | |||||
Buildings | 15,043 | (7,113 | ) | |||||
Machinery and equipment | — | (4,520 | ) | |||||
Others | 2,058 | (1,809 | ) | |||||
|
|
|
| |||||
687,068 | (36,099 | ) | ||||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
Carrying amount | Carrying amount | |||||||
NT$000 | NT$000 | |||||||
Land | 636,261 | 616,458 | ||||||
Buildings | 19,044 | 10,946 | ||||||
Machinery and equipment | 203,249 | 204,484 | ||||||
Others | 515 | 3,917 | ||||||
859,069 | 835,805 | |||||||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Depreciation expenses | Depreciation expenses | Depreciation expenses | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Land | 22,657 | 20,938 | 20,486 | |||||||||
Buildings | 7,113 | 7,819 | 9,870 | |||||||||
Machinery and equipment | 4,520 | 46,225 | 247,090 | |||||||||
Others | 1,809 | 1,544 | 1,634 | |||||||||
36,099 | 76,526 | 279,080 | ||||||||||
c) | For the right-of-use |
d) | The information on profit |
| ||||
| ||||
|
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Items affecting profit or loss | ||||||||||||
Interest expense on lease liabilities | 14,349 | 13,442 | 15,245 | |||||||||
Expense on short-term lease contracts | 230,589 | 202,782 | 143,791 |
e) | For the |
|
December 31, 2018 | ||||||||||||
Cost | Allowance for impairment losses | Carrying amount | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Raw materials | 1,814,992 | (36,157 | ) | 1,778,835 | ||||||||
|
|
|
|
|
|
December 31, 2019 | ||||||||||||
Cost | Allowance for impairment losses | Carrying amount | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Raw materials | 1,831,140 | (63,498 | ) | 1,767,642 | ||||||||
|
|
|
|
|
|
15. |
Short-term bank loans |
The cost
Type of loans | December 31, 2020 | December 31, 2021 | ||||||
NT$000 | NT$000 | |||||||
Bank loans | ||||||||
Unsecured bank loans | — | 731,751 | ||||||
Interest rate range | — | 0.6604%~0.7394 | % | |||||
Unused credit lines of short-term bank loans | ||||||||
NT$000 | 3,251,000 | 2,918,249 | ||||||
US$000 | 90,000 | 85,025 | ||||||
16. | Accounts payable |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Accounts payable | 766,805 | 765,403 | ||||||
Estimated accounts payable | 200,016 | 246,988 | ||||||
966,821 | 1,012,391 | |||||||
17. | Other payables |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Payables to contractors and equipment suppliers | 1,145,359 | 1,816,555 | ||||||
Salaries and bonuses payable | 788,720 | 829,762 | ||||||
Employees’ compensation payable | 332,080 | 673,387 | ||||||
Directors’ remuneration payable | 16,604 | 25,690 | ||||||
Pension payable | 15,159 | 16,600 | ||||||
Interest payable | 1,958 | 3,277 | ||||||
Other expense payable | 949,523 | 1,013,168 | ||||||
3,249,403 | 4,378,439 | |||||||
2018 | 2019 | |||||||
NT$000 | NT$000 | |||||||
Cost of revenue | 15,057,605 | 16,372,032 | ||||||
Loss on abandonment | 5,497 | 12,369 | ||||||
Allowance for (reversal of) inventory valuation and obsolescence loss | (13,070 | ) | 27,341 | |||||
|
|
|
| |||||
15,050,032 | 16,411,742 | |||||||
|
|
|
|
|
|
|
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Accounts receivable | 4,747,834 | 4,454,255 | ||||||
Notes receivable | 1,595 | 765 | ||||||
Less: Loss allowance | (2,141 | ) | (1,351 | ) | ||||
|
|
|
| |||||
4,747,288 | 4,453,669 | |||||||
|
|
|
|
|
|
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Current | 4,596,895 | 4,440,846 | ||||||
Within 1 month | 18,807 | 13,733 | ||||||
1 – 2 months | 131,787 | 441 | ||||||
2 – 3 months | 1,436 | — | ||||||
3 – 4 months | 180 | — | ||||||
Over 4 months | 324 | — | ||||||
|
|
|
| |||||
4,749,429 | 4,455,020 | |||||||
|
|
|
|
|
|
|
18. |
Long-term bank loans |
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Cash on hand and petty cash | 470 | 470 | ||||||
Checking accounts and demand deposits | 1,396,302 | 915,134 | ||||||
Time deposits | 3,245,750 | 3,788,480 | ||||||
|
|
|
| |||||
4,642,522 | 4,704,084 | |||||||
|
|
|
|
Type of loans | Period and payment term | December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||||
Syndicated bank loan | Borrowing period is from May 30, 2018 to May 30, 2023; interest is repayable monthly; principal is repayable semi-annually from November 30, 2018 | 3,310,000 | 54,000 | |||||||
Government granted bank loans | Borrowing period is from March 11, 2020 to November 15, 2031; interest is repayable monthly; principal is repayable monthly from March 15, 2023 | 4,505,000 | 9,463,131 | |||||||
Less: Fee on syndicated bank loan | (17,223 | ) | (10,026 | ) | ||||||
Less: Unamortized interest on government granted bank loans | (64,212 | ) | (93,740 | ) | ||||||
Less: Current portion (fee included) | (748,353 | ) | (46,826 | ) | ||||||
6,985,212 | 9,366,539 | |||||||||
Interest raterange | 0.65%~1.7895 | % | 0.45%~1.7895 | % | ||||||
Unused credit lines of long-term bank loan NT$000 | 11,239,000 | 8,776,868 | ||||||||
a) | On January 1, 2019 |
b) |
|
|
|
In March 2017, the Company received NT$2,230,544 thousand in cash and recognized total gain on disposal of discontinued operations amounted to NT$1,843,234 thousand. Based on the fair value received and the book value of its investment, gain on disposal of 54.98% equity interest is equal to NT$999,630 thousand and gain on fair value remeasurement of 45.02% retained investment is equal to NT$843,604 thousand.
|
| ||||
| ||||
| ||||
| ||||
| ||||
|
| ||||
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
Discontinued operations’ revenue is mainly from the segments of testing and assembly.
|
|
|
|
ADS holders have no right to directly vote in shareholders’ meetings with respect to the deposited shares. The depository bank shall vote on behalf of ADS holders or provide voting instruction to the designated person of the Company. The depository bank shall vote in the manner as instructed by ADS holders.
|
ADS holders are deemed to have the same rights as holders of ordinary shares with respect to the distribution of dividends.
|
2017 | 2018 | 2019 | ||||||||||
in thousands | in thousands | in thousands | ||||||||||
January 1 | 856,754 | 856,059 | 727,265 | |||||||||
Restricted shares – cancelled | (542 | ) | (349 | ) | (25 | ) | ||||||
Restricted shares – uncancelled | (153 | ) | (23 | ) | — | |||||||
Capital reduction | — | (128,422 | ) | — | ||||||||
|
|
|
|
|
| |||||||
December 31 | 856,059 | 727,265 | 727,240 | |||||||||
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
Details of the Group’s capital surplus are set out below:
2017 | ||||||||||||||||
Share premium | Employee restricted shares | Others | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 6,473,471 | 408,051 | 7,304 | 6,888,826 | ||||||||||||
Share-based payments | — | (17,650 | ) | — | (17,650 | ) | ||||||||||
Cash distribution from capital surplus | (599,728 | ) | — | — | (599,728 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | 5,873,743 | 390,401 | 7,304 | 6,271,448 | ||||||||||||
|
|
|
|
|
|
|
|
2018 | ||||||||||||||||
Share premium | Employee restricted shares | Others | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 5,873,743 | 390,401 | 7,304 | 6,271,448 | ||||||||||||
Share-based payments | — | (7,967 | ) | — | (7,967 | ) | ||||||||||
Capital reduction | — | 72 | — | 72 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | 5,873,743 | 382,506 | 7,304 | 6,263,553 | ||||||||||||
|
|
|
|
|
|
|
|
2019 | ||||||||||||||||
Share premium | Employee restricted shares | Others | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 5,873,743 | 382,506 | 7,304 | 6,263,553 | ||||||||||||
Share-based payments | — | (412 | ) | — | (412 | ) | ||||||||||
Cancellation of treasury stock | (199,501 | ) | (12,853 | ) | — | (212,354 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | 5,674,242 | 369,241 | 7,304 | 6,050,787 | ||||||||||||
|
|
|
|
|
|
|
|
Pursuant to the ROC Company Act, any capital surplus arising frompaid-in capital in excess of par value on issuance of ordinary shares and donations can be used to cover accumulated deficits or to issue new shares or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficits. Furthermore, the ROC Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above may not exceed 10% of thepaid-in capital each year. Capital surplus may not be used to cover accumulated deficits unless the legal reserve is insufficient.
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
|
|
|
2016 | 2017 | 2018 | ||||||||||||||||||||||
Amount | Cash Distribution per share | Amount | Cash Distribution per share | Amount | Cash Distribution per share | |||||||||||||||||||
NT$000 | NT$ | NT$000 | NT$ | NT$000 | NT$ | |||||||||||||||||||
Legal reserve | 28,680 | 302,653 | 110,308 | |||||||||||||||||||||
Cash dividend | 257,026 | 0.30 | 256,806 | 0.30 | 872,718 | 1.20 | ||||||||||||||||||
Cash distribution from capital surplus | 599,728 | 0.70 | — | — | — | — |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
2017 | ||||||||||||||||||||
Foreign currency translation reserve | Amounts recognized in other comprehensive income (loss) and accumulated in equity relating to non-current assets held for sale | Unrealized gain on valuation of available-for-sale financial assets | Unearned employee awards | Total | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
January 1 | 10,600 | 287,645 | — | (200,204 | ) | 98,041 | ||||||||||||||
Currency translation differences | ||||||||||||||||||||
- The Company | (232,652 | ) | — | — | — | (232,652 | ) | |||||||||||||
- Disposal of a subsidiary | 287,645 | (287,645 | ) | — | — | — | ||||||||||||||
Employee restricted shares | ||||||||||||||||||||
- The Company | — | — | — | 145,634 | 145,634 | |||||||||||||||
Evaluation adjustment | ||||||||||||||||||||
- Associates | — | — | 678 | — | 678 | |||||||||||||||
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|
|
|
| |||||||||||
December 31 | 65,593 | — | 678 | (54,570 | ) | 11,701 | ||||||||||||||
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|
|
|
|
|
|
|
|
2018 | ||||||||||||||||||||
Foreign currency translation reserve | Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | Unrealized gain on valuation of available-for-sale financial assets | Unearned employee awards | Total | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
January 1 | 65,593 | — | 678 | (54,570 | ) | 11,701 | ||||||||||||||
Effects on initial application of IFRS 9 | — | 42,843 | (678 | ) | — | 42,165 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Adjusted beginning balance | 65,593 | 42,843 | — | (54,570 | ) | 53,866 | ||||||||||||||
Currency translation differences | ||||||||||||||||||||
- The Company | (51,077 | ) | — | — | — | (51,077 | ) | |||||||||||||
Employee restricted shares | ||||||||||||||||||||
- The Company | — | — | — | 52,869 | 52,869 | |||||||||||||||
Evaluation adjustment | ||||||||||||||||||||
- The Company | — | 85,022 | — | — | 85,022 | |||||||||||||||
- Associates | — | (2,438 | ) | — | — | (2,438 | ) | |||||||||||||
Evaluation adjustment related tax | ||||||||||||||||||||
- The Company | — | (18,529 | ) | — | — | (18,529 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
December 31 | 14,516 | 106,898 | — | (1,701 | ) | 119,713 | ||||||||||||||
|
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|
|
|
|
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|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
2019 | ||||||||||||||||
Foreign currency translation reserve | Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | Unearned employee awards | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 14,516 | 106,898 | (1,701 | ) | 119,713 | |||||||||||
Currency translation differences | ||||||||||||||||
- The Company | (104,198 | ) | — | — | (104,198 | ) | ||||||||||
Employee restricted shares | ||||||||||||||||
- The Company | — | — | 1,701 | 1,701 | ||||||||||||
Evaluation adjustment | ||||||||||||||||
- The Company | — | (52,549 | ) | — | (52,549 | ) | ||||||||||
- Associates | — | 5,093 | — | 5,093 | ||||||||||||
Evaluation adjustment related tax | ||||||||||||||||
- The Company | — | 7,016 | — | 7,016 | ||||||||||||
Disposal of investment in associates | — | (72 | ) | — | (72 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | (89,682 | ) | 66,386 | — | (23,296 | ) | ||||||||||
|
|
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|
|
|
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|
|
|
2017 | 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
in thousands | NT$000 | in thousands | NT$000 | |||||||||||||
January 1 | 30,085 | 1,007,654 | 30,085 | 1,007,654 | ||||||||||||
Capital reduction | — | — | (4,515 | ) | (45,151 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | 30,085 | 1,007,654 | 25,570 | 962,503 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
Type of loans | Period and payment term | December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||||
Syndicated bank loan | Borrowing period is from May 30, 2018 to May 30, 2023; interest is repayable monthly; principal is repayable semi-annually from November 30, 2018 | 9,822,000 | 9,066,000 | |||||||
Less: Fee on syndicated bank loan | (32,482 | ) | (24,355 | ) | ||||||
Less: Current portion (fee included) | (747,422 | ) | (748,419 | ) | ||||||
9,042,096 | 8,293,226 | |||||||||
Interest rate range | 1.7895 | % | 1.7895 | % | ||||||
Unused credit lines of long-term bank loans NT$000 | 1,800,000 | 1,800,000 |
On May 15, 2018, the Company entered into a syndicated loan with |
|
c) | Information about the items |
19. |
Pensions |
a) | Defined |
|
|
(a) | The amounts recognized in the statements of financial position are as follows: |
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Present value of defined benefit obligations | (910,081 | ) | (901,159 | ) | ||||
Fair value of plan assets | 389,316 | 421,052 | ||||||
|
|
|
| |||||
Net defined benefit liability | (520,765 | ) | (480,107 | ) | ||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Present value of defined benefit obligations | (943,391 | ) | (959,677 | ) | ||||
Fair value of plan assets | 431,740 | 456,389 | ||||||
Net defined benefit liability | (511,651 | ) | (503,288 | ) | ||||
(b) | Movements in net defined benefit liability are as follows: |
2018 | ||||||||||||
Present value of defined benefit obligations | Fair value of plan assets | Net defined benefit liability | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (838,543 | ) | 360,017 | (478,526 | ) | |||||||
Current services cost | (382 | ) | — | (382 | ) | |||||||
Interest (expense) income | (14,429 | ) | 6,291 | (8,138 | ) | |||||||
|
|
|
|
|
| |||||||
(853,354 | ) | 366,308 | (487,046 | ) | ||||||||
|
|
|
|
|
| |||||||
Remeasurements: | ||||||||||||
Return on plan assets (excluding amounts included in interest income or expense) | — | 8,145 | 8,145 | |||||||||
Financial assumption movement effect | (56,934 | ) | — | (56,934 | ) | |||||||
Experience adjustments | (11,172 | ) | — | (11,172 | ) | |||||||
|
|
|
|
|
| |||||||
(68,106 | ) | 8,145 | (59,961 | ) | ||||||||
|
|
|
|
|
| |||||||
Pension fund contribution | — | 26,242 | 26,242 | |||||||||
Paid pension | 11,379 | (11,379 | ) | — | ||||||||
|
|
|
|
|
| |||||||
December 31 | (910,081 | ) | 389,316 | (520,765 | ) | |||||||
|
|
|
|
|
|
2019 | ||||||||||||
Present value of defined benefit obligations | Fair value of plan assets | Net defined benefit liability | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (910,081 | ) | 389,316 | (520,765 | ) | |||||||
Current services cost | (332 | ) | — | (332 | ) | |||||||
Interest (expense) income | (11,170 | ) | 4,831 | (6,339 | ) | |||||||
(921,583 | ) | 394,147 | (527,436 | ) | ||||||||
Remeasurements: | ||||||||||||
Return on plan assets (excluding amounts included in interest income or expense) | — | 12,601 | 12,601 | |||||||||
Financial assumption movement effect | (27,993 | ) | — | (27,993 | ) | |||||||
Experience adjustments | 36,308 | — | 36,308 | |||||||||
8,315 | 12,601 | 20,916 | ||||||||||
Pension fund contribution | — | 26,413 | 26,413 | |||||||||
Paid pension | 12,109 | (12,109 | ) | — | ||||||||
December 31 | (901,159 | ) | 421,052 | (480,107 | ) | |||||||
|
|
|
2019 | ||||||||||||
Present value of defined benefit obligations | Fair value of plan assets | Net defined benefit liability | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (910,081 | ) | 389,316 | (520,765 | ) | |||||||
Current services cost | (332 | ) | — | (332 | ) | |||||||
Interest (expense) income | (11,170 | ) | 4,831 | (6,339 | ) | |||||||
|
|
|
|
|
| |||||||
(921,583 | ) | 394,147 | (527,436 | ) | ||||||||
|
|
|
|
|
| |||||||
Remeasurements: | ||||||||||||
Return on plan assets (excluding amounts included in interest income or expense) | — | 12,601 | 12,601 | |||||||||
Financial assumption movement effect | (27,993 | ) | — | (27,993 | ) | |||||||
Experience adjustments | 36,308 | — | 36,308 | |||||||||
|
|
|
|
|
| |||||||
8,315 | 12,601 | 20,916 | ||||||||||
|
|
|
|
|
| |||||||
Pension fund contribution | — | 26,413 | 26,413 | |||||||||
Paid pension | 12,109 | (12,109 | ) | — | ||||||||
|
|
|
|
|
| |||||||
December 31 | (901,159 | ) | 421,052 | (480,107 | ) | |||||||
|
|
|
|
|
|
2020 | ||||||||||||
Present value of defined benefit obligations | Fair value of plan assets | Net defined benefit liability | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (901,159 | ) | 421,052 | (480,107 | ) | |||||||
Current services cost | (263 | ) | — | (263 | ) | |||||||
Interest (expense) income | (8,835 | ) | 4,171 | (4,664 | ) | |||||||
(910,257 | ) | 425,223 | (485,034 | ) | ||||||||
Remeasurements: | ||||||||||||
Return on plan assets (excluding amounts included in interest income or expense) | — | 12,568 | 12,568 | |||||||||
Financial assumption movement effect | (57,180 | ) | — | (57,180 | ) | |||||||
Experience adjustments | (7,378 | ) | — | (7,378 | ) | |||||||
(64,558 | ) | 12,568 | (51,990 | ) | ||||||||
Pension fund contribution | — | 25,373 | 25,373 | |||||||||
Paid pension | 31,424 | (31,424 | ) | — | ||||||||
December 31 | (943,391 | ) | 431,740 | (511,651 | ) | |||||||
2021 | ||||||||||||
Present value of defined benefit obligations | Fair value of plan assets | Net defined benefit liability | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (943,391 | ) | 431,740 | (511,651 | ) | |||||||
Current services cost | (237 | ) | — | (237 | ) | |||||||
Interest (expense) income | (4,629 | ) | 2,137 | (2,492 | ) | |||||||
(948,257 | ) | 433,877 | (514,380 | ) | ||||||||
Remeasurements: | ||||||||||||
Return on plan assets (excluding amounts included in interest income or expense) | — | 5,613 | 5,613 | |||||||||
Impact on changes in demographic assumptions | (20,022 | ) | — | (20,022 | ) | |||||||
Financial assumption movement effect | 23,757 | — | 23,757 | |||||||||
Experience adjustments | (24,347 | ) | — | (24,347 | ) | |||||||
(20,612 | ) | 5,613 | (14,999 | ) | ||||||||
Pension fund contribution | — | 26,091 | 26,091 | |||||||||
Paid pension | 9,192 | (9,192 | ) | — | ||||||||
December 31 | (959,677 | ) | 456,389 | (503,288 | ) | |||||||
(c) | The Bank of Taiwan was commissioned to manage the fund of the Company’s defined benefit pension plan in accordance with the fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, two-year time deposits with the interest rates offered by local banks. If the earnings |
(d) | The principal actuarial assumptions used were as |
2018 | 2019 | |||||||
Discount rate | 1.25 | % | 1.00 | % | ||||
Future salary increase | 3.50 | % | 3.50 | % |
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Discount rate | 0.50 | % | 0.70 | % | ||||
Future salary increase | 3.50 | % | 3.50 | % | ||||
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
The |
Because the main actuarial assumption changed, the present value of defined benefit obligations is affected.affected by the change in actuarial assumption. The analysis was as follows:
Discount rate | Future salary increase | |||||||||||||||
Increase 0.25% | Decrease 0.25% | Increase 0.25% | Decrease 0.25% | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
December 31, 2018 | ||||||||||||||||
Effect on present value of defined benefit obligations | (29,052 | ) | 30,430 | 29,692 | (28,513 | ) | ||||||||||
December 31, 2019 | ||||||||||||||||
Effect on present value of defined benefit obligations | (27,993 | ) | 29,284 | 28,501 | (27,407 | ) |
Discount rate | Future salary increase | |||||||||||||||
Increase 0.25% | Decrease 0.25% | Increase 0.25% | Decrease 0.25% | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
December 31, 2020 | ||||||||||||||||
Effect on present value of defined benefit obligations | (29,114 | ) | 30,434 | 29,471 | (28,365 | ) | ||||||||||
December 31, 2021 | ||||||||||||||||
Effect on present value of defined benefit obligations | (28,574 | ) | 29,825 | 28,941 | (27,893 | ) | ||||||||||
(e) | Expected contributions to the defined benefit pension 27,00 5 thousand. |
(f) | As of December 31, |
December 31, | ||||
NT$000 | ||||
Within 1 year | ||||
| ||||
| ||||
| ||||
378,912 | ||||
|
Effective from July 1, 2005, the Company established a defined contribution pension plan (“New Plan”) under the Labor Pension Act, covering all regular employees with ROC nationality. Under the New Plan, the Company contributes monthly an amount based on 6%
|
|
| ||||
| ||||
| ||||
| ||||
| ||||
b) |
Defined Contribution Plans |
|
|
2018 | 2019 | |||||||
Accrued sales allowance | Accrued sales allowance | |||||||
NT$000 | NT$000 | |||||||
January 1 | 70,156 | 32,627 | ||||||
Provision | 44,950 | 63,863 | ||||||
Reversal | (7,413 | ) | — | |||||
Payment | (75,066 | ) | (70,490 | ) | ||||
|
|
|
| |||||
December 31 | 32,627 | 26,000 | ||||||
|
|
|
|
|
|
Operating leases commitments
Prior to 2019
ChipMOS Taiwan entered into several operating lease contracts for land. These renewable operating leases will expire by 2032 and 2034.
ChipMOS USA entered into several operating lease contracts for office space. These renewable operating leases will expire by 2019 and 2020.
Future minimum lease obligation payable under those leases are as follows:
| ||||
| ||||
| ||||
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
Capital commitments
Capital expenditures that are contracted for, but not provided for are as follows:
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Property, plant and equipment | 2,508,797 | 1,640,712 | ||||||
|
|
|
|
Other commitments
A letter of guarantee was issued by the Bank of Taiwan to the Customs Administration of the Ministry of Finance for making payment of customs-duty deposits when importing. As of December 31, 2018 and 2019, the amounts of NT$97,500 thousand and NT$100,800 thousand, respectively, were guaranteed by Bank of Taiwan.
|
Partial cash paid for investing and financing activities
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Purchase of property, plant and equipment | 4,849,331 | 4,945,570 | 4,896,656 | |||||||||
Add: Beginning balance of payable to contractors and equipment suppliers | 839,983 | 713,313 | 1,516,735 | |||||||||
Add: Beginning balance of payable on lease | 94,952 | 29,842 | — | |||||||||
Less: Ending balance of payable to contractors and equipment suppliers | (878,065 | ) | (1,516,735 | ) | (972,770 | ) | ||||||
Less: Ending balance of payable on lease | (84,192 | ) | (17,792 | ) | — | |||||||
Less: Transfer from prepaid equipment (shown as “Othernon-current assets”) | (139,304 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Cash paid during the year | 4,682,705 | 4,154,198 | 5,440,621 | |||||||||
|
|
|
|
|
|
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Disposal of a subsidiary | 2,166,151 | — | — | |||||||||
Add: Ending balance of other payables* | 64,393 | — | — | |||||||||
Less: Cash and cash equivalents of discontinued operations | (449,331 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Cash received from disposal of a subsidiary | 1,781,213 | — | — | |||||||||
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
2017 | ||||||||||||||||
Short-term bank loans | Long-term bank loans (including current portion) | Guarantee deposits | Total liabilities from financing activities | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | — | 10,750,005 | 1,404 | 10,751,409 | ||||||||||||
Changes in cash flow from financing activities | 969,353 | (1,124,699 | ) | (33 | ) | (155,379 | ) | |||||||||
Amortization of loan fees | — | 16,715 | — | 16,715 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | 969,353 | 9,642,021 | 1,371 | 10,612,745 | ||||||||||||
|
|
|
|
|
|
|
|
2018 | ||||||||||||||||
Short-term bank loans | Long-term bank loans (including current portion) | Guarantee deposits | Total liabilities from financing activities | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 969,353 | 9,642,021 | 1,371 | 10,612,745 | ||||||||||||
Changes in cash flow from financing activities | (969,353 | ) | 110,250 | (279 | ) | (859,382 | ) | |||||||||
Amortization of loan fees | — | 37,247 | — | 37,247 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | — | 9,789,518 | 1,092 | 9,790,610 | ||||||||||||
|
|
|
|
|
|
|
|
2019 | ||||||||||||||||
Long-term bank loans (including current portion) | Guarantee deposits | Lease liabilities | Total liabilities from financing activities | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 9,789,518 | 1,092 | — | 9,790,610 | ||||||||||||
Effects on initial application of IFRS 16 | — | — | 884,275 | 884,275 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Adjusted balance at January 1 | 9,789,518 | 1,092 | 884,275 | 10,674,885 | ||||||||||||
Changes in cash flow from financing activities | (756,450 | ) | 3 | (48,161 | ) | (804,608 | ) | |||||||||
Adjustment toright-of-use assets | — | — | (148,512 | ) | (148,512 | ) | ||||||||||
Reclassification to payable on equipment from lease liabilities | — | — | (9,000 | ) | (9,000 | ) | ||||||||||
Amortization of loan fees | 8,577 | — | — | 8,577 | ||||||||||||
Amortization of interest expense | — | — | 14,349 | 14,349 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31 | 9,041,645 | 1,095 | 692,951 | 9,735,691 | ||||||||||||
|
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
The Company has neither a parent company nor an ultimate controlling party. The transactions between the Company and its subsidiaries were eliminated in the accompanying consolidated financial statements and were not disclosed herein. The transactions between the Group and other related parties are as follows.
|
| ||||
| ||||
|
|
(a) |
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
JMC | 130 | 132,494 | 9 | |||||||||
|
|
|
|
|
|
Purchases of materials from associate is based on normal commercial terms and conditions. The payment terms of the purchases from associate have no significant differences with third party suppliers.
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Unimos Shanghai | 41,183 | 17 | — | |||||||||
|
|
|
|
|
|
|
2017 | ||||||||
Selling price | Gain on disposal | |||||||
NT$000 | NT$000 | |||||||
Unimos Shanghai | 21,982 | 20,240 | ||||||
|
|
|
|
There were no disposal of property, plant, and equipment to related parties for the years ended December 31, 2018 and 2019.
|
In June 2017 and January 2018, ChipMOS BVI participated in Unimos Shanghai’s increase ofpaid-in capital based on its shareholding amounted to NT$1,373,486 thousand and NT$794,694 thousand.
|
2017 | 2018 | 2019 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Salaries and other short-term employee benefits | 188,105 | 151,095 | 178,713 | |||||||||
Post-employment compensation | 5,622 | 2,067 | 2,049 | |||||||||
Share-based payments | 18,736 | 6,763 | — | |||||||||
|
|
|
|
|
| |||||||
212,463 | 159,925 | 180,762 | ||||||||||
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
Assets | Purpose | December 31, 2018 | December 31, 2019 | |||||||||
NT$000 | NT$000 | |||||||||||
Non-current financial assets at amortized cost | | Lease and bank loan | | 68,388 | 68,450 | |||||||
Property, plant and equipment, net | ||||||||||||
- Land | Bank loan | 452,738 | 452,738 | |||||||||
- Buildings | Bank loan | 3,908,731 | 4,095,929 | |||||||||
- Machinery and equipment | Bank loan | 5,310,769 | 4,105,912 | |||||||||
|
|
|
| |||||||||
9,740,626 | 8,723,029 | |||||||||||
|
|
|
|
|
|
|
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Financial assets | ||||||||
Financial assets at fair value through profit or loss | ||||||||
Financial assets mandatorily measured at fair value through profit or loss | 11,471 | 11,038 | ||||||
Financial assets at fair value through other comprehensive income | ||||||||
Designation of equity instruments | 174,357 | 121,808 | ||||||
Financial assets at amortized cost | ||||||||
Cash and cash equivalents | 4,642,522 | 4,704,084 | ||||||
Financial assets at amortized cost | 268,271 | 237,420 | ||||||
Accounts and notes receivable | 4,747,288 | 4,453,669 | ||||||
Accounts receivable – related parties | 140 | 1,045 | ||||||
Other receivables | 63,037 | 89,676 | ||||||
Other receivables –related parties | 3,131 | 2,948 | ||||||
Refundable deposits | 22,006 | 21,145 | ||||||
|
|
|
| |||||
9,932,223 | 9,642,833 | |||||||
|
|
|
| |||||
Financial liabilities | ||||||||
Financial liabilities at amortized cost | ||||||||
Accounts payable | 637,271 | 819,548 | ||||||
Accounts payable –related parties | 347 | — | ||||||
Payables to contractors and equipment suppliers | 1,516,735 | 972,770 | ||||||
Other payables | 1,678,482 | 2,004,266 | ||||||
Other payables –related parties | 218 | — | ||||||
Long-term bank loans (including current portion) | 9,789,518 | 9,041,645 | ||||||
Guarantee deposits | 1,092 | 1,095 | ||||||
|
|
|
| |||||
13,623,663 | 12,839,324 | |||||||
|
|
|
| |||||
Lease liabilities (including current portion) | — | 692,951 | ||||||
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
Effective from July 1, 2005, the |
|
|
|
|
The Group’s market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks comprise foreign currency risk, interest rate risk, and other price risks. In practice, the risk variable rarely changes individually, and the change of each risk variable is usually correlative. The following sensitivity analysis did not consider the interaction of each risk variable.
Foreign exchange risk
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
Foreign exchange risk (continued)
|
December 31, 2018 | ||||||||||||
Foreign currency | Exchange rate | Carrying amount (NT$000) | ||||||||||
(Foreign currency: functional currency) | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 170,270 | 30.7150 | 5,229,843 | |||||||||
JPY000 | 177,557 | 0.2782 | 49,396 | |||||||||
RMB000 | 8,850 | 4.4720 | 39,577 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 18,230 | 30.7150 | 559,934 | |||||||||
JPY000 | 2,436,140 | 0.2782 | 677,734 |
December 31, 2019 | ||||||||||||
Foreign currency | Exchange rate | Carrying amount (NT$000) | ||||||||||
(Foreign currency: functional currency) | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 188,369 | 29.9800 | 5,647,303 | |||||||||
JPY000 | 266,819 | 0.2760 | 73,642 | |||||||||
RMB000 | 6,197 | 4.3050 | 26,678 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 7,867 | 29.9800 | 235,853 | |||||||||
JPY000 | 1,033,394 | 0.2760 | 285,217 |
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
Foreign exchange risk (continued)
|
2018 | ||||||||||||
Change in exchange rate | Effect on profit (NT$000) | Effect on other comprehensive income (NT$000) | ||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 261,492 | — | ||||||||
JPY000 | 5 | % | 2,470 | — | ||||||||
RMB000 | 5 | % | 1,979 | — | ||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 27,997 | — | ||||||||
JPY000 | 5 | % | 33,887 | — |
2019 | ||||||||||||
Change in exchange rate | Effect on profit (NT$000) | Effect on other comprehensive income (NT$000) | ||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 282,365 | — | ||||||||
JPY000 | 5 | % | 3,682 | — | ||||||||
RMB000 | 5 | % | 1,334 | — | ||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 11,793 | — | ||||||||
JPY000 | 5 | % | 14,261 | — |
Price risk
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
Interest rate risk on cash flow and fair value
|
|
|
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
|
December 31, 2018 | ||||||||||||
Contract assets | Accounts and notes receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Expected loss rate | 0.045 | % | 0.045 | % | 0.045 | % | ||||||
Total carrying amount | 299,970 | 4,749,569 | 66,181 | |||||||||
Loss allowance | (135 | ) | (2,141 | ) | (13 | ) |
December 31, 2019 | ||||||||||||
Contract assets | Accounts and notes receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Expected loss rate | 0.030 | % | 0.030 | % | 0.030 | % | ||||||
Total carrying amount | 377,983 | 4,456,065 | 92,642 | |||||||||
Loss allowance | (114 | ) | (1,351 | ) | (18 | ) |
|
2018 | ||||||||||||
Contract assets | Accounts and notes receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1_ IAS 39 | — | — | — | |||||||||
Adjustments for applying new standards | (115 | ) | (1,819 | ) | (7 | ) | ||||||
|
|
|
|
|
| |||||||
January 1_IFRS 9 (Note) | (115 | ) | (1,819 | ) | (7 | ) | ||||||
Provision for impairment loss | (20 | ) | (322 | ) | (7 | ) | ||||||
Reversal of impairment loss | — | — | 1 | |||||||||
|
|
|
|
|
| |||||||
December 31 | (135 | ) | (2,141 | ) | (13 | ) | ||||||
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
|
2019 | ||||||||||||
Contract assets | Accounts and notes receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (135 | ) | (2,141 | ) | (13 | ) | ||||||
Provision for impairment loss | — | — | (5 | ) | ||||||||
Reversal of impairment loss | 21 | 790 | — | |||||||||
|
|
|
|
|
| |||||||
December 31 | (114 | ) | (1,351 | ) | (18 | ) | ||||||
|
|
|
|
|
|
|
December 31, 2018 | ||||||||||||||||
By lifetime | ||||||||||||||||
12 months | Increase in credit risk | Impairment of credit | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Financial assets at amortized cost | ||||||||||||||||
Bank deposits (Note) | 268,271 | — | — | 268,271 | ||||||||||||
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||
By lifetime | ||||||||||||||||
12 months | Increase in credit risk | Impairment of credit | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Financial assets at amortized cost | ||||||||||||||||
Bank deposits (Note) | 237,420 | — | — | 237,420 | ||||||||||||
|
|
|
|
|
|
|
|
Note: Time deposits with contract period over three months and restricted bank deposits.
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
December 31, 2018 | ||||||||||||||||||||
Within 1 year | 1 to 3 years | 3 to 5 years | Over 5 years | Total | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Long-term bank loans | 927,243 | 1,814,344 | 7,734,983 | — | 10,476,570 | |||||||||||||||
Lease obligations payable | 18,000 | — | — | — | 18,000 | |||||||||||||||
Guarantee deposits | — | — | — | 1,092 | 1,092 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
945,243 | 1,814,344 | 7,734,983 | 1,092 | 10,495,662 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||||||
Within 1 year | 1 to 3 years | 3 to 5 years | Over 5 years | Total | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Long-term bank loans | 914,159 | 1,786,842 | 6,848,327 | — | 9,549,328 | |||||||||||||||
Lease liabilities | 36,806 | 60,111 | 57,836 | 762,699 | 917,452 | |||||||||||||||
Guarantee deposits | — | — | — | 1,095 | 1,095 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
950,965 | 1,846,953 | 6,906,163 | 763,794 | 10,467,875 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
The difference between the floating interest rates and estimated interest rates will affect thenon-derivative financial liabilities stated above.
|
|
(b) |
According to |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
wages. The |
December 31, 2018 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Assets | ||||||||||||||||
Recurring fair value measurements | ||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
- Foreign partnership interests | — | — | 11,471 | 11,471 | ||||||||||||
Financial assets at fair value through other comprehensive income | ||||||||||||||||
- Foreign unlisted stocks | — | — | 174,357 | 174,357 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
— | — | 185,828 | 185,828 | |||||||||||||
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Assets | ||||||||||||||||
Recurring fair value measurements | ||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
- Foreign partnership interests | — | — | 11,038 | 11,038 | ||||||||||||
Financial assets at fair value through other comprehensive income | ||||||||||||||||
- Foreign unlisted stocks | — | — | 121,808 | 121,808 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
— | — | 132,846 | 132,846 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
|
|
|
December 31, 2018 | ||||||||||||
Debt instruments | Equity instruments | Total | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | — | — | — | |||||||||
Effects on initial application of IFRS 9 | 11,433 | 89,335 | 100,768 | |||||||||
Gains or losses recognized in profit or loss | ||||||||||||
Recorded asnon-operating income | 38 | — | 38 | |||||||||
Gains or losses recognized in other comprehensive income | ||||||||||||
Recorded as unrealized gains on valuation of financial assets at fair value through other comprehensive income | — | 85,022 | 85,022 | |||||||||
|
|
|
|
|
| |||||||
December 31 | 11,471 | 174,357 | 185,828 | |||||||||
|
|
|
|
|
|
December 31, 2019 | ||||||||||||
Debt instruments | Equity instruments | Total | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | 11,471 | 174,357 | 185,828 | |||||||||
Gains or losses recognized in profit or loss | ||||||||||||
Recorded asnon-operating expenses | (433 | ) | — | (433 | ) | |||||||
Gains or losses recognized in other comprehensive income | ||||||||||||
Recorded as unrealized losses on valuation of financial assets at fair value through other comprehensive income | — | (52,549 | ) | (52,549 | ) | |||||||
|
|
|
|
|
| |||||||
December 31 | 11,038 | 121,808 | 132,846 | |||||||||
|
|
|
|
|
|
20. | Share-based payments |
On July 14, 2015, the Company’s Board of Directors approved the issuance of restricted shares. The |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
Fair value as of December 31, 2018 | Valuation technique | Significant unobservable input | Range (weighted average method) | Relationship of inputs to fair value | ||||||||||||||
NT$000 | ||||||||||||||||||
Non-derivative debt instrument: | ||||||||||||||||||
Foreign partnership interests | 11,471 | Discounted cash flow | | Discount rate | | 0.35 | % | The lower the discount rate, the higher the fair value | ||||||||||
Non-derivative equity instrument: | ||||||||||||||||||
Foreign unlisted stocks | 174,357 | Comparable companies | | Price to book ratio multiple | | 1.19 | The higher the multiple, the higher the fair value | |||||||||||
| Enterprise value to EBITDA multiple | | 7.69 | The higher the multiple, the higher the fair value | ||||||||||||||
| Discount for lack of marketability | | 15.80 | % | The higher the discount for lack of marketability, the lower the fair value |
Fair value as of December 31, 2019 | Valuation technique | Significant unobservable input | Range (weighted average method) | Relationship of inputs to fair value | ||||||||||||||
NT$000 | ||||||||||||||||||
Non-derivative debt instrument: | ||||||||||||||||||
Foreign partnership interests | 11,038 | Discounted cash flow | | Discount rate | | 0.30 | % | The lower the discount rate, the higher the fair value | ||||||||||
Non-derivative equity instrument: | ||||||||||||||||||
Foreign unlisted stocks | 121,808 | Comparable companies | | Price to book ratio multiple | | 1.22 | The higher the multiple, the higher the fair value | |||||||||||
| Enterprise value to EBITDA multiple | | 10.51 | The higher the multiple, the higher the fair value | ||||||||||||||
| Discount for lack of marketability | | 15.80 | % | The higher the discount for lack of marketability, the lower the fair value |
Type of arrangement | Grant date | Share price on grant date (in NT$) | Number of shares (in thousands) | Contract period | Vesting condition | |||||||||
Restricted shares award agreement | July 21, 2015 | 36.1 | 15,752 | 3 years | Meet service and performance conditions | |||||||||
Restricted shares award agreement | May 10, 2016 | 30.6 | 1,548 | 3 years | Meet service and performance conditions |
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
|
|
December 31, 2018 | ||||||||||||||||||||
Recognized in profit or loss | Recognized in other comprehensive income | |||||||||||||||||||
Input | Change | Favorable change | Unfavorable change | Favorable change | Unfavorable change | |||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||
Financial assets | ||||||||||||||||||||
Foreign partnership interests | Discount rate | Note | — | — | — | — | ||||||||||||||
Foreign unlisted stocks | Price to book ratio multiple | ± 1% | — | — | 69 | 68 | ||||||||||||||
Enterprise value to EBITDA multiple | ± 1% | — | — | 1,563 | 1,512 | |||||||||||||||
Discount for lack of marketability | ± 1% | — | — | 2,093 | 2,050 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
— | — | 3,725 | 3,630 | |||||||||||||||||
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||||||
Recognized in profit or loss | Recognized in other comprehensive income | |||||||||||||||||||
Input | Change | Favorable change | Unfavorable change | Favorable change | Unfavorable change | |||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||
Financial assets | ||||||||||||||||||||
Foreign partnership interests | Discount rate | Note | — | — | — | — | ||||||||||||||
Foreign unlisted stocks | Price to book ratio multiple | ± 1% | — | — | 53 | 53 | ||||||||||||||
Enterprise value to EBITDA multiple | ± 1% | — | — | 850 | 900 | |||||||||||||||
Discount for lack of marketability | ± 1% | — | — | 1,460 | 1,460 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
— | — | 2,363 | 2,413 | |||||||||||||||||
|
|
|
|
|
|
|
|
ChipMOS TECHNOLOGIES INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
December 31, 2017, 2018 and 2019
|
Restricted Shares
On July 14, 2015, the Company’s Board of Directors approved the issuance of restricted shares. The record dates for the shares issuance were July 21, 2015 and May 10, 2016. The relevant information is as follows:
Type of arrangement | Grant date | Share price on grant date (in NT$) | Number of shares (in thousands) | Number of shares returned due to employee resignation (in thousands) | Contract period | Vesting condition | ||||||||||||||||||
2018 | 2019 | |||||||||||||||||||||||
Restricted shares award agreement | July 21, 2015 | 36.1 | 15,752 | (256 | ) | — | 3 years | Meet service and performance conditions | ||||||||||||||||
Restricted shares award agreement | May 10, 2016 | 30.6 | 1,548 | (116 | ) | (25 | ) | 3 years | Meet service and performance conditions |
The restricted shares issued by the Company cannot be transferred during the vesting period, but voting right and dividend right are not restricted. Employees are required to return the shares but not required to return the dividends received if they resign during the vesting period. When the employees accomplish the years of service and performance conditions, the received restricted shares will be vested based on the vesting ratio.
b) | As of December 31, 2019, there were 0 outstanding restricted shares. |
c) | The expenses incurred on share-based payment transactions for the year ended December 31, 2019 was NT$822 thousand. |
21. | Capital stock |
a) | As of December 31, 2021, the Company’s authorized capital was NT$9,700,000 thousand, consisting of 970,000 thousand ordinary shares, and the paid-in capital was NT$7,272,401 thousand with a par value of NT$10 per share, consisting of 727,240 thousand ordinary shares. All proceeds from shares issued have been collected. |
b) | As of December 31, 2021, the outstanding ADSs were approximately 4,586,252 units representing 91,725 thousand ordinary shares and each ADS represents 20 ordinary shares of the Company. The major terms and conditions of the ADSs are summarized as follows: |
(a) | Voting rights: |
(b) | Distribution of dividends: |
c) | Movements in the number of the Company’s ordinary shares outstanding are as follows: |
2019 | 2020 | 2021 | ||||||||||
in thousands | in thousands | in thousands | ||||||||||
January 1 | 727,265 | 727,240 | 727,240 | |||||||||
Restricted shares – cancelled | (25 | ) | 0 — | 0 — | ||||||||
December 31 | 727,240 | 727,240 | 727,240 | |||||||||
d) | Treasury stock |
22. | Capital surplus |
2019 | ||||||||||||||||
Share premium | Employee restricted shares | Others | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 5,873,743 | 382,506 | 7,304 | 6,263,553 | ||||||||||||
Share-based payments | — | (412 | ) | — | (412 | ) | ||||||||||
Cancellation of treasury stock | (199,501 | ) | (12,853 | ) | — | (212,354 | ) | |||||||||
December 31 | 5,674,242 | 369,241 | 7,304 | 6,050,787 | ||||||||||||
2020 | ||||||||||||||||
Share premium | Employee restricted shares | Others | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 5,674,242 | 369,241 | 7,304 | 6,050,787 | ||||||||||||
Reclassifications | 369,241 | (369,241 | ) | — | — | |||||||||||
December 31 | 6,043,483 | — | 7,304 | 6,050,787 | ||||||||||||
2021 | ||||||||||||||||
Share premium | Employee restricted shares | Others | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 6,043,483 | — | 7,304 | 6,050,787 | ||||||||||||
Changes in associates accounted for using equity method | — | — | 4,834 | 4,834 | ||||||||||||
December 31 | 6,043,483 | — | 12,138 | 6,055,621 | ||||||||||||
23. | Retained earnings |
a) | Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as a legal reserve. The Company may then appropriate or reverse a certain amount as special reserve according to the relevant regulations. After the distribution of earnings, the remaining earnings and prior years’ unappropriated retained earnings may be appropriated according to a proposal by the Board of Directors and approved in the shareholders’ meeting. |
b) | The Company’s dividend policy is summarized here. As the Company operates in a volatile business environment, the issuance of dividends to be distributed takes into consideration the Company’s financial structure, operating results and future expansion plans. The earnings distribution of the Company may be made by way of cash dividends or stock dividends, provided that cash dividends account for at least 10% of the total dividends distributed. The earnings distribution will be proposed by the Board of Directors and approved at the shareholders’ meeting. |
c) | Except for covering accumulated deficits or issuing new shares or cash to shareholders in proportion to their share ownership, the legal reserve may not be used for any other purpose. The use of the legal reserve for the issuance of shares or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital. |
d) | In accordance with the regulations, the Company must set aside a special reserve from the debit balance on other equity items at the statements of financial position date before distributing earnings. When the debit balance on other equity items is reversed subsequently, the reversed amount may be included in the distributable earnings. |
e) | The appropriations of 2018, 2019 and 2020 earnings were resolved in the shareholders’ meeting held on June 10, 2019, June 9, 2020 and July 12, 2021, respectively. The appropriations and dividends per share are as follows: |
2018 | 2019 | 2020 | ||||||||||||||||||||||
Amount | Cash distribution per share | Amount | Cash distribution per share | Amount | Cash distribution per share | |||||||||||||||||||
NT$000 | NT$ | NT$000 | NT$ | NT$000 | NT$ | |||||||||||||||||||
Legal reserve | 110,308 | 258,416 | 232,611 | |||||||||||||||||||||
Special reserve | — | 19,802 | (19,802 | ) | ||||||||||||||||||||
Cash dividend | 872,718 | 1.20 | 1,309,032 | 1.80 | 1,599,928 | 2.20 |
24. | Other equity interest |
2019 | ||||||||||||||||
Financial statements translation differences of foreign operations | Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | Unearned employee awards | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 14,516 | 106,898 | (1,701 | ) | 119,713 | |||||||||||
Currency translation differences | ||||||||||||||||
- The Company | (104,198 | ) | — | — | (104,198 | ) | ||||||||||
Employee restricted shares | ||||||||||||||||
- The Company | — | — | 1,701 | 1,701 | ||||||||||||
Evaluation adjustment | ||||||||||||||||
- The Company | — | (52,549 | ) | — | (52,549 | ) | ||||||||||
- Associates | — | 5,093 | — | 5,093 | ||||||||||||
Evaluation adjustment related tax | ||||||||||||||||
- The Company | — | 7,016 | — | 7,016 | ||||||||||||
Disposal of investment accounted for using equity method | — | (72 | ) | — | (72 | ) | ||||||||||
December 31 | (89,682 | ) | 66,386 | — | (23,296 | ) | ||||||||||
2020 | ||||||||||||
Financial statements translation differences of foreign operations | Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | Total | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (89,682 | ) | 66,386 | (23,296 | ) | |||||||
Currency translation differences | ||||||||||||
- The Company | 28,352 | — | 28,352 | |||||||||
Evaluation adjustment | ||||||||||||
- The Company | — | 140,199 | 140,199 | |||||||||
- Associates | — | 22,925 | 22,925 | |||||||||
Evaluation adjustment related tax | ||||||||||||
- The Company | — | (34,794 | ) | (34,794 | ) | |||||||
December 31 | (61,330 | ) | 194,716 | 133,386 | ||||||||
2021 | ||||||||||||
Financial statements translation differences of foreign operations | Unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income | Total | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (61,330 | ) | 194,716 | 133,386 | ||||||||
Currency translation differences | ||||||||||||
- The Company | (24,695 | ) | — | (24,695 | ) | |||||||
Evaluation adjustment | ||||||||||||
- The Company | — | 122,514 | 122,514 | |||||||||
- Associates | — | 21,094 | 21,094 | |||||||||
Evaluation adjustment related tax | ||||||||||||
- The Company | — | (30,459 | ) | (30,459 | ) | |||||||
December 31 | (86,025 | ) | 307,865 | 221,840 | ||||||||
25. | Revenue |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Revenue from contracts with customers | 20,337,881 | 23,011,381 | 27,400,035 | |||||||||
a) | The Group is primarily engaged in the assembly and testing services on high-integration and high-precision integrated circuits, and recognized revenue based on the progress towards completion of performance obligation during the service period. Information on revenue disaggregation is provided in Note 44. |
b) | Contract assets and liabilities |
January 1, 2020 | December 31, 2020 | December 31, 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Contract assets | 377,869 | 389,016 | 400,255 | |||||||||
Contract liabilities (Advance payments) | 1,231 | — | — | |||||||||
c) | The information relating to loss allowance for contract assets is provided in Note 43 a). |
d) | Revenue recognized for the years ended December 31, 2020 and 2021, amounted to NT$565 thousand and NaN, respectively, was related to carried forward contract liabilities for performance obligations not satisfied in prior year. |
e) | All of the service contracts are for periods of one year or less. As permitted under IFRS 15, “Revenue from Contracts with Customers”, the transaction price allocated to these unsatisfied contracts is not disclosed. |
26. | Other income (expenses), net |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Gain on disposal of scrapped materials | 43,652 | 51,077 | 52,254 | |||||||||
Royalty income | 12,336 | 2,962 | 907 | |||||||||
Gain on disposal of items purchased on behalf of others | 15,080 | 30,140 | 21,945 | |||||||||
Gain on disposal of property, plant and equipment, net | 20,271 | 48,070 | 33,935 | |||||||||
Insurance compensation income | 10,435 | — | — | |||||||||
Impairment loss on property, plant and equipment | �� | (9,938 | ) | — | (4,843 | ) | ||||||
Gains from lease modifications | — | — | 891 | |||||||||
Others | 1,092 | 3,329 | 20,498 | |||||||||
92,928 | 135,578 | 125,587 | ||||||||||
27. | Interest income |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Bank deposits | 59,901 | 25,547 | 8,772 | |||||||||
Financial assets at amortized cost | 4,467 | 2,206 | 1,187 | |||||||||
Other interest income | — | 25 | 21 | |||||||||
64,368 | 27,778 | 9,980 | ||||||||||
28. | Other income |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Rental income | 9,249 | 10,260 | 17,326 | |||||||||
Dividend income | 585 | 3,229 | 4,690 | |||||||||
Grant income | 925 | 7,668 | 12,480 | |||||||||
10,759 | 21,157 | 34,496 | ||||||||||
29. | Other gains and losses |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Foreign exchange losses, net | (154,993 | ) | (355,255 | ) | (89,152 | ) | ||||||
Reimbursement of ADSs service charge | 4,292 | 2,101 | 2,284 | |||||||||
Gain on valuation of financial assets at fair value through profit or loss | 1,317 | 24,015 | 15,262 | |||||||||
Compensation income | — | — | 1,524 | |||||||||
Others | 970 | 5,872 | 4,253 | |||||||||
(148,414 | ) | (323,267 | ) | (65,829 | ) | |||||||
30. | Finance costs |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Interest expense | ||||||||||||
Bank loans | 171,840 | 158,720 | 116,946 | |||||||||
Lease liabilities | 14,349 | 13,442 | 15,245 | |||||||||
Less: Amounts capitalized in qualifying assets | (15,114 | ) | (9,762 | ) | (11,193 | ) | ||||||
171,075 | 162,400 | 120,998 | ||||||||||
Finance expense | 9,187 | 9,082 | 10,186 | |||||||||
180,262 | 171,482 | 131,184 | ||||||||||
31. | Expenses by nature |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Raw materials and supplies used | 3,575,283 | 4,708,493 | 5,518,145 | |||||||||
Employee benefit expenses | 6,075,773 | 6,010,227 | 6,757,888 | |||||||||
Depreciation expenses | 3,731,914 | 4,175,519 | 4,634,112 | |||||||||
Others | 4,590,720 | 4,686,218 | 5,053,088 | |||||||||
17,973,690 | 19,580,457 | 21,963,233 | ||||||||||
32. | Employee benefit expenses |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Salaries | 5,114,790 | 4,937,591 | 5,632,219 | |||||||||
Directors’ remuneration | 26,266 | 28,229 | 40,164 | |||||||||
Labor and health insurance | 422,106 | 396,796 | 424,901 | |||||||||
Pension | 194,173 | 189,489 | 200,014 | |||||||||
Share-based payments | 822 | — | — | |||||||||
Other personnel expenses | 317,616 | 458,122 | 460,590 | |||||||||
6,075,773 | 6,010,227 | 6,757,888 | ||||||||||
a) | In accordance with the Company’s Articles of Incorporation, employees’ compensation is based on the current year’s earnings, which should first be used to cover accumulated deficits, if any, and then 10% of the remaining balance distributed as employees’ compensation, including distributions to certain qualifying employees in affiliate companies, and no more than 0.5% as directors’ remuneration. Subject to the Board of Directors’ approval, employees’ compensation may be made by way of cash or share issuance. Distribution of employees’ compensation and directors’ remuneration shall be presented and reported in the subsequent shareholders’ meeting. |
b) | Based on profit distributable as of the end of reporting period, for the years ended December 31, 2019, 2020 and 2021, the employees’ compensation were accrued at NT$338,356 thousand, NT$332,080 thousand and NT$673,387 thousand, respectively; the directors’ remuneration were accrued at NT$16,918 thousand, NT$16,604 thousand and NT$25,690 thousand, respectively. |
c) | For the year of 2020, employees’ compensation and directors’ remuneration recognized were consistent with the amounts resolved in the Board of Directors’ meeting. |
33. | Income tax expense |
a) | Income tax expense |
(a) | Components of income tax expense: |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Current income tax: | ||||||||||||
Current income tax on profits for the period | 408,788 | 636,876 | 1,109,752 | |||||||||
Income tax on unappropriated retained earnings | 74,540 | 105,665 | 227,467 | |||||||||
Prior year income tax overestimation | (5,016 | ) | (133,923 | ) | (184,284 | ) | ||||||
Total current income tax | 478,312 | 608,618 | 1,152,935 | |||||||||
Deferred income tax: | ||||||||||||
Relating to origination and reversal of temporary differences | 35,367 | (14,237 | ) | (54,617 | ) | |||||||
Income tax expense | 513,679 | 594,381 | 1,098,318 | |||||||||
(b) | The income tax (charge)/credit relating to components of other comprehensive income are as follows: |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Unrealized (loss) gain on valuation of financial assets at fair value through other comprehensive income | (7,016 | ) | 34,794 | 30,459 | ||||||||
Remeasurement of defined benefit obligations | 4,183 | (10,398 | ) | (2,999 | ) | |||||||
(2,833 | ) | 24,396 | 27,460 | |||||||||
b) | Reconciliation of income tax expense and the accounting profit: |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Tax calculated based on profit before tax and statutory tax rate | 606,917 | 595,258 | 1,207,605 | |||||||||
Effects from adjustments based on regulation | (162,924 | ) | 26,974 | (152,618 | ) | |||||||
Temporary difference not recognized as deferred tax assets | (608 | ) | (4 | ) | — | |||||||
Prior year income tax overestimation | (5,016 | ) | (133,923 | ) | (184,284 | ) | ||||||
Income tax on unappropriated retained earnings | 74,540 | 105,665 | 227,467 | |||||||||
Effect of different tax rates in countries in which the Group operates | 770 | 411 | 148 | |||||||||
Income tax expense | 513,679 | 594,381 | 1,098,318 | |||||||||
c) | The amounts of deferred tax assets or liabilities resulting from temporary differences and investment tax credits are as follows: |
2019 | ||||||||||||||||
January 1 | Recognized in profit or loss | Recognized in other comprehensive income | December 31 | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Deferred tax assets | ||||||||||||||||
Loss on inventories | 7,232 | 5,468 | — | 12,700 | ||||||||||||
Property, plant and equipment | 64,183 | (25,515 | ) | — | 38,668 | |||||||||||
Provisions | 12,396 | (6,796 | ) | — | 5,600 | |||||||||||
Deferred revenue | 34,156 | (6,506 | ) | — | 27,650 | |||||||||||
Net defined benefit liability | 100,743 | (3,948 | ) | (4,183 | ) | 92,612 | ||||||||||
Unrealized exchange losses | 3,575 | 13,721 | — | 17,296 | ||||||||||||
Investment tax credit | 4,420 | (4,420 | ) | — | — | |||||||||||
Others | 11 | 15 | — | 26 | ||||||||||||
Total | 226,716 | (27,981 | ) | (4,183 | ) | 194,552 | ||||||||||
Deferred tax liabilities | ||||||||||||||||
Property, plant and equipment | (281,594 | ) | (7,386 | ) | — | (288,980 | ) | |||||||||
Financial assets at fair value through other comprehensive income | (27,165 | ) | — | 7,016 | (20,149 | ) | ||||||||||
Total | (308,759 | ) | (7,386 | ) | 7,016 | (309,129 | ) | |||||||||
Information presented on statements of financial position | ||||||||||||||||
Deferred tax assets | 226,716 | 194,552 | ||||||||||||||
Deferred tax liabilities | (308,759 | ) | (309,129 | ) | ||||||||||||
2020 | ||||||||||||||||
January 1 | Recognized in profit or loss | Recognized in other comprehensive income | December 31 | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Deferred tax assets | ||||||||||||||||
Loss on inventories | 12,700 | 3,263 | — | 15,963 | ||||||||||||
Property, plant and equipment | 38,668 | (2,267 | ) | — | 36,401 | |||||||||||
Provisions | 5,600 | (2,922 | ) | — | 2,678 | |||||||||||
Deferred revenue | 27,650 | (6,506 | ) | — | 21,144 | |||||||||||
Net defined benefit liability | 92,612 | (4,089 | ) | 10,398 | 98,921 | |||||||||||
Unrealized exchange losses | 17,296 | (7,381 | ) | — | 9,915 | |||||||||||
Others | 26 | 643 | — | 669 | ||||||||||||
Total | 194,552 | (19,259 | ) | 10,398 | 185,691 | |||||||||||
Deferred tax liabilities | ||||||||||||||||
Property, plant and equipment | (288,980 | ) | 33,496 | — | (255,484 | ) | ||||||||||
Financial assets at fair value through other comprehensive income | (20,149 | ) | — | (34,794 | ) | (54,943 | ) | |||||||||
Total | (309,129 | ) | 33,496 | (34,794 | ) | (310,427 | ) | |||||||||
Information presented on statements of financial position | ||||||||||||||||
Deferred tax assets | 194,552 | 185,691 | ||||||||||||||
Deferred tax liabilities | (309,129 | ) | (310,427 | ) | ||||||||||||
2021 | ||||||||||||||||
January 1 | Recognized in profit or loss | Recognized in other comprehensive income | December 31 | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Deferred tax assets | ||||||||||||||||
Loss on inventories | 15,963 | 8,354 | — | 24,317 | ||||||||||||
Property, plant and equipment | 36,401 | 235 | — | 36,636 | ||||||||||||
Provisions | 2,678 | 171 | — | 2,849 | ||||||||||||
Deferred revenue | 21,144 | (6,506 | ) | — | 14,638 | |||||||||||
Net defined benefit liability | 98,921 | (4,672 | ) | 2,999 | 97,248 | |||||||||||
Unrealized exchange losses | 9,915 | (7,754 | ) | — | 2,161 | |||||||||||
Others | 669 | 2,080 | — | 2,749 | ||||||||||||
Total | 185,691 | (8,092 | ) | 2,999 | 180,598 | |||||||||||
Deferred tax liabilities | ||||||||||||||||
Property, plant and equipment | (255,484 | ) | 62,797 | — | (192,687 | ) | ||||||||||
Financial assets at fair value through other comprehensive income | (54,943 | ) | — | (30,459 | ) | (85,402 | ) | |||||||||
Others | — | (88 | ) | — | (88 | ) | ||||||||||
Total | (310,427 | ) | 62,709 | (30,459 | ) | (278,177 | ) | |||||||||
Information presented on statements of financial position | ||||||||||||||||
Deferred tax assets | 185,691 | 180,598 | ||||||||||||||
Deferred tax liabilities | (310,427 | ) | (278,177 | ) | ||||||||||||
d) | The amounts of deductible temporary difference that are not recognized as deferred tax assets are as follows: |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Deductible temporary differences | 946,236 | 371,133 | ||||||
e) | The Company has not recognized taxable temporary differences associated with investments as deferred tax liabilities. As of December 31, 2020 and 2021, the amounts of temporary differences not recognized as deferred tax liability were NT$45,005 thousand and NT$609,709 thousand, respectively. |
f) | The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority. |
g) | On October 31, 2016, the Company merged with its former parent company, ChipMOS TECHNOLOGIES (Bermuda) LTD. And as a result, the Company recognized its own shares originally held by former parent company as treasury stock. Subsequently, the Company deducted unappropriated retained earnings by NT$5,052,343 thousand to reflect the loss due from the cancellation of treasury stock. In January 2017, the Company has filed an application to the National Taxation Bureau of the Northern Area, Ministry of Finance to apply the accumulated deficit amount, as a deduction in the calculation of years 2015 and 2016 additional 10% tax on unappropriated retained earnings. In April and June 2020, the Company received the Notice for Assessment of Tax for the years 2015 and 2016 from the National Taxation Bureau of the Northern Area, Ministry of Finance, and the tax refund amounted to NT$138,941 thousand was received in year 2020. |
34. | Earnings per share |
Year ended December 31, 2019 | ||||||||||||
Amount after income tax | Weighted average number of ordinary shares outstanding | Earnings per share | ||||||||||
Basic earnings per share | NT$000 | In thousands | NT$ | |||||||||
Profit attributable to equity holders of the Company | 2,508,574 | 727,111 | 3.45 | |||||||||
Diluted earnings per share | ||||||||||||
Assumed conversion of all dilutive potential ordinary shares: | ||||||||||||
Employees’ compensation | 9,879 | |||||||||||
Restricted shares | 126 | |||||||||||
Profit attributable to equity holders of the Company | 2,508,574 | 737,116 | 3.40 | |||||||||
Year ended December 31, 2020 | ||||||||||||
Amount after income tax | Weighted average number of ordinary shares outstanding | Earnings per share | ||||||||||
Basic earnings per share | NT$000 | In thousands | NT$ | |||||||||
Profit attributable to equity holders of the Company | 2,378,978 | 727,240 | 3.27 | |||||||||
Diluted earnings per share | ||||||||||||
Assumed conversion of all dilutive potential ordinary shares: | ||||||||||||
Employees’ compensation | 9,668 | |||||||||||
Profit attributable to equity holders of the Company | 2,378,978 | 736,908 | 3.23 | |||||||||
Year ended December 31, 2021 | ||||||||||||
Amount after income tax | Weighted average number of ordinary shares outstanding | Earnings per share | ||||||||||
Basic earnings per share | NT$000 | In thousands | NT$ | |||||||||
Profit attributable to equity holders of the Company | 4,937,267 | 727,240 | 6.79 | |||||||||
Diluted earnings per share | ||||||||||||
Assumed conversion of all dilutive potential ordinary shares: | ||||||||||||
Employees’ compensation | 15,618 | |||||||||||
Profit attributable to equity holders of the Company | 4,937,267 | 742,858 | 6.65 | |||||||||
35. | Supplementary cash flow information |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Purchase of property, plant and equipment | 4,896,656 | 4,133,615 | 6,552,702 | |||||||||
Add: Beginning balance of payable to contractors and equipment suppliers | 1,516,735 | 972,770 | 1,145,359 | |||||||||
Less: Ending balance of payable to contractors and equipment suppliers | (972,770 | ) | (1,145,359 | ) | (1,816,555 | ) | ||||||
Cash paid during the year | 5,440,621 | 3,961,026 | 5,881,506 | |||||||||
36. | Changes in liabilities from financing activities |
2019 | ||||||||||||||||
Long-term bank loans (including current portion) | Guarantee deposits | Lease liabilities | Total liabilities from financing activities | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 9,789,518 | 1,092 | — | 9,790,610 | ||||||||||||
Effects on initial application of IFRS 16 | — | — | 884,275 | 884,275 | ||||||||||||
Adjusted balance at January 1 | 9,789,518 | 1,092 | 884,275 | 10,674,885 | ||||||||||||
Changes in cash flow from financing activities | (756,450 | ) | 3 | (48,161 | ) | (804,608 | ) | |||||||||
Adjustment to right-of-use | — | — | (148,512 | ) | (148,512 | ) | ||||||||||
Reclassification to payable on equipment from lease liabilities | — | — | (9,000 | ) | (9,000 | ) | ||||||||||
Amortization of loan fees | 8,577 | — | — | 8,577 | ||||||||||||
Amortization of interest expense | — | — | 14,349 | 14,349 | ||||||||||||
December 31 | 9,041,645 | 1,095 | 692,951 | 9,735,691 | ||||||||||||
2020 | ||||||||||||||||
Long-term bank loans (including current portion) | Guarantee deposits | Lease liabilities | Total liabilities from financing activities | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
January 1 | 9,041,645 | 1,095 | 692,951 | 9,735,691 | ||||||||||||
Changes in cash flow from financing activities | (1,326,857 | ) | 575 | (84,928 | ) | (1,411,210 | ) | |||||||||
Adjustment to right-of-use | — | — | 249,030 | 249,030 | ||||||||||||
Reclassification | — | 20,000 | — | 20,000 | ||||||||||||
Amortization of loan fees | 7,581 | — | — | 7,581 | ||||||||||||
Amortization of interest expense | 11,196 | — | 13,442 | 24,638 | ||||||||||||
December 31 | 7,733,565 | 21,670 | 870,495 | 8,625,730 | ||||||||||||
2021 | ||||||||||||||||||||
Short-term bank loans | Long-term bank loans (including current portion) | Guarantee deposits | Lease liabilities | Total liabilities from financing activities | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
January 1 | — | 7,733,565 | 21,670 | 870,495 | 8,625,730 | |||||||||||||||
Changes in cash flow from financing activities | 731,751 | 1,652,332 | (45 | ) | (289,668 | ) | 2,094,370 | |||||||||||||
Adjustment to right-of-use | — | — | — | 255,179 | 255,179 | |||||||||||||||
Amortization of loan fees | — | 7,646 | — | — | 7,646 | |||||||||||||||
Amortization of interest expense | — | 19,822 | — | 15,245 | 35,067 | |||||||||||||||
December 31 | 731,751 | 9,413,365 | 21,625 | 851,251 | 11,017,992 | |||||||||||||||
37. | Related party transactions |
a) | Parent and ultimate controlling party |
b) | Names of related parties and relationship |
Name | Relationship | |||
Unimos Shanghai | Associate | |||
JMC | Associate |
c) | Significant related party transactions |
d) | Key management personnel compensation |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Salaries and other short-term employee benefits | 178,713 | 186,854 | 243,405 | |||||||||
Post-employment compensation | 2,049 | 4,258 | 2,156 | |||||||||
180,762 | 191,112 | 245,561 | ||||||||||
38. | Pledged assets |
Assets | Purpose | December 31, 2020 | December 31, 2021 | |||||||||
Carrying amount | Carrying amount | |||||||||||
NT$000 | NT$000 | |||||||||||
Non-current financial assets at amortized cost | Lease and bank loan | | 48,319 | 37,539 | ||||||||
Property, plant and equipment, net | ||||||||||||
- Land | Bank loan | 452,738 | 452,738 | |||||||||
- Buildings | Bank loan | 4,092,287 | 4,343,556 | |||||||||
- Machinery and equipment | Bank loan | 6,912,544 | 8,245,561 | |||||||||
11,505,888 | 13,079,394 | |||||||||||
39. | Significant contingent liabilities and unrecognized contract commitments |
a) | A letter of guarantee was issued by the financial institutions to the Customs Administration of the Ministry of Finance for making payment of customs-duty deposits when importing. As of December 31, 2020 and 2021, the amounts guaranteed by the financial institutions were NT$99,000 thousand and NT$137,700 thousand, respectively. |
b) | Capital expenditures that are contracted for, but not provided for are as follows: |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Property, plant and equipment, net | 2,331,041 | 2,629,129 | ||||||
40. | Significant disaster loss |
41. | Significant events after the reporting period |
42. | Capital management |
December 31, 2018 | December 31, 2019 | |||||||
NT$000 | NT$000 | |||||||
Total liabilities | 15,112,545 | 14,775,302 | ||||||
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|
|
| |||||
Total assets | 33,133,718 | 34,305,887 | ||||||
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| |||||
Liabilities to assets ratio | 45.61% | 43.07% | ||||||
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On January 1, 2019, Ministry
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Total liabilities | 14,364,975 | 18,380,369 | ||||||
Total assets | 35,080,814 | 42,522,584 | ||||||
Liabilities to assets ratio | 40.95 | % | 43.22 | % | ||||
43. |
|
These consolidated financial statements were approved and authorized for issue by the Board of Directors on April 23, 2020.
|
January 1 | Additions charged to expense | Deduction / Write-offs | December 31 | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Year of 2017 : | ||||||||||||||||
Allowance for impairment of property, plant and equipment | 359,270 | 956 | (39,771 | ) | 320,455 | |||||||||||
Allowance for impairment of obsolescence and decline in market value of inventories | 154,841 | — | (101,127 | ) | 53,714 | |||||||||||
Year of 2018 : | ||||||||||||||||
Allowance for impairment of property, plant and equipment | 320,455 | — | (2,862 | ) | 317,593 | |||||||||||
Allowance for impairment of obsolescence and decline in market value of inventories | 53,714 | — | (17,557 | ) | 36,157 | |||||||||||
Year of 2019 : | ||||||||||||||||
Allowance for impairment of property, plant and equipment | 317,593 | 9,938 | (134,191 | ) | 193,340 | |||||||||||
Allowance for impairment of obsolescence and decline in market value of inventories | 36,157 | 27,341 | — | 63,498 |
For movements in provisions for deficiency compensation, refund liabilities and loss allowance for contract assets, accounts receivable, and other receivables, please refer to Notes 27, 28 and 33, respectively.
|
a) |
Financial instruments |
(a) | Financial instruments by category |
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Financial assets | ||||||||
Financial assets at fair value through profit or loss | ||||||||
Financial assets mandatorily measured at fair value through profit or loss | 63,488 | 359,960 | ||||||
Financial assets at fair value through other comprehensive income | ||||||||
Designation of equity instruments | 262,007 | 384,521 | ||||||
Financial assets at amortized cost | ||||||||
Cash and cash equivalents | 4,113,651 | 5,906,176 | ||||||
Financial assets at amortized cost | 254,801 | 66,778 | ||||||
Notes receivable | 599 | 1,035 | ||||||
Accounts receivable | 5,364,156 | 6,344,246 | ||||||
Other receivables | 51,436 | 86,879 | ||||||
Refundable deposits | 21,186 | 21,278 | ||||||
10,131,324 | 13,170,873 | |||||||
Financial liabilities | ||||||||
Financial liabilities at amortized cost | ||||||||
Short-term bank loans | — | 731,751 | ||||||
Notes payable | 2,899 | 23 | ||||||
Accounts payable | 966,821 | 1,012,391 | ||||||
Other payables | 3,249,403 | 4,378,439 | ||||||
Long-term bank loans (including current portion) | 7,733,565 | 9,413,365 | ||||||
Lease liabilities (including current portion) | 870,495 | 851,251 | ||||||
Guarantee deposits | 21,670 | 21,625 | ||||||
12,844,853 | 16,408,845 | |||||||
(b) | Risk management policies |
i) | The Group’s risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activities. The Group identifies, measures, and manages such risks by its policies and preferences. |
ii) | The Group has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant financial transactions, a due approval process must be carried out by the Board of |
iii) | In order to minimize and manage financial risks, the |
Investments and other financial assets
Initial recognition and measurement
The Group’s financial assets are classified, at initial recognition, into financial assets at FVTPL, loans and receivables andavailable-for-sale financial investments. When financial assets are recognized initially, they are measured at fair value plus transaction costs that are attributable to the acquisition
|
Significant financial risks and degrees of |
Investmentsi) financial assets (continued)Effective interest methodThe effective interest method is a method of calculatingprice risks.amortized cost of loansrisk variable rarely changes individually, and receivables and a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period.Income is recognized on an effective interest basis for debt instruments.Subsequent measurementThe subsequent measurement of financial assets depends on their classification as follows:Financial assets at fair value through profit or lossFinancial assets at FVTPL include financial assets held for trading and those designated as at FVTPL upon initial recognition.A financial asset is classified as held for trading, mainly for cash management purpose as part of operating activities, if it has been acquired principally for the purpose of selling in the near future; or it is a part of an identified portfolio of financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or it is a derivative that is not designated and effective as a hedging instrument.A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if:such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; orthe financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on fair value basis, in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; orit forms part of a contract containing one or more embedded derivatives, and IAS 39 “Financial Instruments: Recognition and Measurement” permits the entire combined contract (asset or liability) to be designated as at FVTPL.Loans and receivablesLoans and receivables arenon-derivative financial assets with fixed or determinable payments that are not quoted in an active market. At the endchange of each reporting period, subsequent to initial recognition, loans and receivables (including accounts and notes receivables, other receivables, refundable deposits, short-term deposits and cash and cash equivalents) are carried at amortized cost usingrisk variable is usually correlative. The following sensitivity analysis did not consider the effective interest method, less any identified impairment losses.Available-for-sale financial investmentsAvailable-for-sale financial investments arenon-derivative financial assets in unlisted equity investments. Equity investments classified as available for sale are those which are neither classified as held for trading nor designated as at fair value through profit or loss.1. 2. 3. 4.
rate
(NT$000) 175,840 28.4800 5,007,923 137,635 0.2763 38,029 6,838 4.3770 29,930 948,270 0.2763 262,007 690,178 4.3770 3,020,908 26,410 28.4800 752,157 1,538,241 0.2763 425,016
December 31, 2021 | ||||||||||||
Foreign currency | Exchange rate | Carrying amount (NT$000) | ||||||||||
(Foreign currency: functional currency) | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 188,143 | 27.6800 | 5,207,798 | |||||||||
JPY000 | 141,523 | 0.2405 | 34,036 | |||||||||
RMB000 | 4,944 | 4.3440 | 21,477 | |||||||||
Non-monetary items | ||||||||||||
JPY000 | 1,598,839 | 0.2405 | 384,521 | |||||||||
RMB000 | 827,811 | 4.3440 | 3,596,012 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 53,042 | 27.6800 | 1,468,203 | |||||||||
JPY000 | 1,089,668 | 0.2405 | 262,005 |
| The total exchange losses, including realized and unrealized losses arising from significant foreign exchange variations on |
Analysis of |
Investments and other financial assets (continued)
Subsequent measurement (continued)
Available-for-sale financial investments (continued)
When the fair value
Year ended December 31, 2019 | ||||||||||||
Sensitivity analysis | ||||||||||||
Change in exchange rate | Effect on profit (loss) (NT$000) | Effect on other comprehensive income (NT$000) | ||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 282,365 | — | ||||||||
JPY000 | 5 | % | 3,682 | — | ||||||||
RMB000 | 5 | % | 1,334 | — | ||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 11,793 | — | ||||||||
JPY000 | 5 | % | 14,261 | — |
|
Year ended December 31, 2020 | ||||||||||||
Sensitivity analysis | ||||||||||||
Change in exchange rate | Effect on profit (loss) (NT$000) | Effect on other comprehensive income (NT$000) | ||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 250,396 | — | ||||||||
JPY000 | 5 | % | 1,901 | — | ||||||||
RMB000 | 5 | % | 1,497 | — | ||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 37,608 | — | ||||||||
JPY000 | 5 | % | 21,251 | — |
Year ended December 31, 2021 | ||||||||||||
Sensitivity analysis | ||||||||||||
Change in exchange rate | Effect on profit (loss) (NT$000) | Effect on other comprehensive income (NT$000) | ||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 260,390 | — | ||||||||
JPY000 | 5 | % | 1,702 | — | ||||||||
RMB000 | 5 | % | 1,074 | — | ||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
US$000 | 5 | % | 73,410 | — | ||||||||
JPY000 | 5 | % | 13,103 | — |
The Group’s financial instruments, which are exposed to price risk, are the |
Impairment of financial assets (continued)
Available-for-sale financial assets
The amount of the impairment loss is measured as the difference between the asset’s acquisition cost (less any principal repayment and amortization) and current fair value, less any impairment loss on that financial asset previously recognized in profit or loss, and is reclassified from “other comprehensive income” to “profit or loss”. If, in a subsequent period, the fair value of an investment in a debt instrument increases, and the increase can be related objectively to an event occurring after the impairment loss was recognized, then such impairment loss is reversed through profit or loss. Impairment loss of an investment in an equity instrument recognized in profit or loss shall not be reversed through profit or loss. Impairment loss is recognized and reversed by adjusting the carrying amount of the asset directly.
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|
Effects | ||||||||||||||||||||||||||||||||||||
Note | Measured at cost | Measured at fair value through profit or loss | Measured at fair value through other comprehensive income | Other financial assets | Measured at amortized cost | Total | Retained earnings | Other equity interest | ||||||||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||||||||||||||
IAS 39 | 20,890 | — | — | 70,241 | — | 91,131 | — | — | ||||||||||||||||||||||||||||
Transferred into and measured at fair value through profit or loss | (c) | (10,940 | ) | 10,940 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transferred into and measured at fair value through other comprehensive income | (b) | (9,950 | ) | — | 9,950 | — | — | — | — | — | ||||||||||||||||||||||||||
Transfer into and measured at amortized cost | (a) | — | — | — | (70,241 | ) | 70,241 | — | — | — | ||||||||||||||||||||||||||
Fair value adjustment | (b)(c) | — | 493 | 50,801 | — | — | 51,294 | 493 | 79,385 | |||||||||||||||||||||||||||
Impairment loss adjustment | (b) | — | — | 28,584 | — | — | 28,584 | 28,584 | (28,584 | ) | ||||||||||||||||||||||||||
Income tax adjustment | (b) | — | — | — | — | — | — | — | (8,636 | ) | ||||||||||||||||||||||||||
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IFRS 9 | — | 11,433 | 89,335 | — | 70,241 | 171,009 | 29,077 | 42,165 | ||||||||||||||||||||||||||||
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2. | The Group invests in beneficiary certificates and |
3. | The Group’s investments in financial instruments comprise foreign unlisted stocks and partnership. The prices of financial instruments would change due to different valuation models and assumptions used. Analysis related to the effect on profit or other comprehensive income if these assumptions change is provided in Note 43 b) (g). |
| Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s bank loans with floating interest rates. The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate bank loans. The Group reassesses the hedge management periodically to make sure it complies with the cost effectiveness. |
2. | The sensitivity analysis depends on |
3. | Analysis of debt with floating interest rates is based on the assumption that the outstanding debt at the end of the reporting period is outstanding throughout the period. The degree of variation the Group used to report to internal management is increase or decrease of 1% in interest rates which is assessed as the reasonable degree of variation by the management. |
4. | For the years ended December 31, |
Credit risk |
|
|
Available-for-sale financial assets
| ||||
| ||||
Due to the operation loss and accumulated deficit of VIGOUR TECHNOLOGY Corporation (“VIGOUR”), the Company has recognized full impairment loss of its investments on VIGOUR amounted to NT$41,336 thousand in prior years. Based on the Company’s assessment, considering VIGOUR is currently in liquidation process and no residual assets are expected to be available for distributions, the carrying amount of investments and accumulated impairment losses were reclassified to “Other receivables” in the fourth quarter of 2017.
As of December 31, 2017, noavailable-for-sale financial assets were pledged.
|
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial |
Each business unit performs ongoing credit write-off experiences of all trade and other receivables which consequently |
Credit risk from balances with banks and financial institutions is managed by the Group’s finance unit in accordance with the Group’s policies. Transaction counterparty of the Group is determined through its internal controls policy. |
4. | The |
5. | The Group categorized contract assets, accounts receivable and other receivables by characteristics of credit risk |
|
The Group referred to the forecastability of business monitoring indicators published by the ROC National Development Council to adjust the loss rate which is based on historical and current information |
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Receivables that were neither past due nor impaired relate to a large number of diversified customers for whom there was no recent history of default.
Receivables that were past due but not impaired relate to a number of independent customers that have a good track record with the Group. Based on past experience, the management of the Company are of the opinion that no provision for impairment is necessary in respect of these balances as there has not been a significant change in credit quality and the balances are still considered fully recoverable.
The individually impaired receivables related to customers that were in financial difficulties or other factors, e.g. the customers were in default or delinquency in interest or principal payments and only a portion of the receivables is expected to be recovered.
The Group’s accounts receivable that were neither past due nor impaired were fully performed in line with the credit standards prescribed based on counterparties’ industrial characteristics, scale of business and profitability.
receivables. As of December 31, |
December 31, 2020 | ||||||||||||
Contract assets | Accounts receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Expected loss rate | 0.030 | % | 0.030 | % | 0.030 | % | ||||||
Total carrying amount | 389,133 | 5,365,776 | 51,446 | |||||||||
Loss allowance | (117 | ) | (1,620 | ) | (10 | ) |
December 31, 2021 | ||||||||||||
Contract assets | Accounts receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Expected loss rate | 0.030 | % | 0.030 | % | 0.030 | % | ||||||
Total carrying amount | 400,375 | 6,346,156 | 86,895 | |||||||||
Loss allowance | (120 | ) | (1,910 | ) | (16 | ) |
7. | Under the simplified approach, movements in relation to loss allowance for contract assets, accounts |
2019 | ||||||||||||
Contract assets | Accounts receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (135 | ) | (2,141 | ) | (13 | ) | ||||||
Provision for impairment loss | — | — | (5 | ) | ||||||||
Reversal of impairment loss | 21 | 790 | — | |||||||||
December 31 | (114 | ) | (1,351 | ) | (18 | ) | ||||||
2020 | ||||||||||||
Contract assets | Accounts receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (114 | ) | (1,351 | ) | (18 | ) | ||||||
Provision for impairment loss | (3 | ) | (269 | ) | — | |||||||
Reversal of impairment loss | — | — | 8 | |||||||||
December 31 | (117 | ) | (1,620 | ) | (10 | ) | ||||||
|
2021 | ||||||||||||
Contract assets | Accounts receivable (including related parties) | Other receivables (including related parties) | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | (117 | ) | (1,620 | ) | (10 | ) | ||||||
Provision for impairment loss | (3 | ) | (290 | ) | (6 | ) | ||||||
December 31 | (120 | ) | (1,910 | ) | (16 | ) | ||||||
The 12-month expected credit losses. There is |
Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits arising in the course of business will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.
The Group engaged in the research, development, manufacturing and sale of high-integration and high-precision integrated circuits and related assembly and testing services. The criteria that the Group uses to determine when to recognize revenue are: (a) the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be measured reliably; (d) it is probable that the economic benefits associated with the transaction will flow to the Group ; (e) the stage of completion of the transaction at the end of the reporting period can be measured reliably, and (f) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
The Group does not take ownership of: (1) bare semiconductor wafers received from customers that are assembled into finished semiconductors, and (2) assembled semiconductors received from the customers that it tests. The title and risk of loss remains with the customer for those bare semiconductors and/or assembled semiconductors. Accordingly, the customer-supplied semiconductor materials are not included in the consolidated financial statements.
The Group does not provide warranties to customers except in cases of defects in the assembly services provided and deficiencies in testing services provided. An appropriate sales allowance is recognized in the period during which the sale is recognized, and is estimated based on historical experience.
Liquidity risk |
1. | The |
2. | The primary source of liquidity for the |
3. | The contractual undiscounted cash flows of notes payable, accounts payable and other payables due within one year and is non-derivative financial liabilities based on the earliest repayment dates and contractual undiscounted payments, including principal and interest. The Group does not consider the probability of early repayments requested by the banks. |
December 31, 2020 | ||||||||||||||||||||
Within 1 year | 1 to 3 years | 3 to 5 years | Over 5 years | Total | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Long-term bank loans | 846,401 | 3,558,597 | 2,198,717 | 1,487,808 | 8,091,523 | |||||||||||||||
Lease liabilities | 145,594 | 160,146 | 54,689 | 718,752 | 1,079,181 | |||||||||||||||
Guarantee deposits | — | — | — | 21,670 | 21,670 | |||||||||||||||
991,995 | 3,718,743 | 2,253,406 | 2,228,230 | 9,192,374 | ||||||||||||||||
|
December 31, 2021 | ||||||||||||||||||||
Within 1 year | 1 to 3 years | 3 to 5 years | Over 5 years | Total | ||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term bank loans | 733,523 | — | — | — | 733,523 | |||||||||||||||
Long-term bank loans | 114,953 | 2,817,662 | 4,568,521 | 2,265,350 | 9,766,486 | |||||||||||||||
Lease liabilities | 182,186 | 119,748 | 54,113 | 691,764 | 1,047,811 | |||||||||||||||
Guarantee deposits | — | — | — | 21,625 | 21,625 | |||||||||||||||
1,030,662 | 2,937,410 | 4,622,634 | 2,978,739 | 11,569,445 | ||||||||||||||||
Fair value information |
December 31, 2018 | ||||||||||||||||
Consolidated statement of financial position items | Description | Balance under IFRS 15 | Balance under previous accounting policies | Impact on accounting policy change | ||||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||||||
Contract assets | (d)(f)(g) | 299,835 | — | 299,835 | ||||||||||||
Inventories | (e) | 1,778,835 | 2,016,106 | (237,271 | ) | |||||||||||
Deferred tax assets | (h) | 226,716 | 226,635 | 81 | ||||||||||||
Contract liabilities | (i) | 1,432 | — | 1,432 | ||||||||||||
Receipts in advance | (i) | 1,013 | 2,445 | (1,432 | ) | |||||||||||
Current provisions | (j) | 29,352 | 61,979 | (32,627 | ) | |||||||||||
Current refund liabilities | (j) | 32,627 | — | 32,627 | ||||||||||||
Retained earnings | 3,602,663 | 3,540,018 | 62,645 |
2018 | ||||||||||||||||
Consolidated statement of comprehensive income items | Description | Balance under IFRS 15 | Balance under previous accounting policies | Impact on accounting policy change | ||||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||||||
Revenue | (a)(d) | 18,480,027 | 18,434,763 | 45,264 | ||||||||||||
Cost of revenue | (a)(e) | (15,050,032 | ) | (15,021,266 | ) | (28,766 | ) | |||||||||
Operating expenses | (f) | (1,477,788 | ) | (1,477,653 | ) | (135 | ) | |||||||||
Othernon-operating income (expenses), net | (g) | 173,070 | 173,476 | (406 | ) | |||||||||||
Income tax expense | (c)(h) | (456,618 | ) | (465,392 | ) | 8,774 | ||||||||||
Profit for the year | 1,325,824 | 1,301,093 | 24,731 | |||||||||||||
Earnings per share (in dollars) | ||||||||||||||||
Basic | NT$ | 1.65 | NT$ | 1.62 | NT$ | 0.03 | ||||||||||
Diluted | NT$ | 1.63 | NT$ | 1.60 | NT$ | 0.03 |
Explanation on the adjustments:
Impact on January 1, 2018
(a) |
The different levels of non-financial instruments are defined as follows: |
The Group provides high-integration and high-precision integrated circuits and related assembly and testing services based on the specifications as required by the customers. The revenue is recognized when the significant risks and rewards are transferred to customers under previous accounting policies, and the timing
Level 1: | Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date. An active market is a market in which trading for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2: | Inputs other than quoted prices from Level 1 that are observable information for the asset or liability, either directly or indirectly. | |
Level 3: | Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3. |
(b) | The carrying amounts of cash and cash equivalents, financial assets at amortized cost, contract assets, notes receivable, accounts receivable, other receivables, refundable deposits, bank loans, notes payable, accounts payable, other payables, lease liabilities and guarantee deposits are approximate to their fair values. |
(c) | The related information of financial and non-financial instruments measured at fair value by level based on the nature, characteristics and risks of the assets and liabilities are as follows: |
i) | The related information of natures of the assets and liabilities are as follows: |
December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Assets | ||||||||||||||||
Recurring fair value measurements | ||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
- Listed stocks | 53,120 | — | — | 53,120 | ||||||||||||
- Foreign partnership interests | — | — | 10,368 | 10,368 | ||||||||||||
Financial assets at fair value through other comprehensive income | ||||||||||||||||
- Foreign unlisted stocks | — | — | 262,007 | 262,007 | ||||||||||||
53,120 | — | 272,375 | 325,495 | |||||||||||||
|
December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Assets | ||||||||||||||||
Recurring fair value measurements | ||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
- Listed stocks | 359,960 | — | — | 359,960 | ||||||||||||
Financial assets at fair value through other comprehensive income | ||||||||||||||||
- Foreign unlisted stocks | — | — | 384,521 | 384,521 | ||||||||||||
359,960 | — | 384,521 | 744,481 | |||||||||||||
The |
1. | The fair value of the Group’s listed stocks is measured by using the market quoted prices, which is categorized within Level 1 fair value. |
2. | Except for listed stocks with active markets, the fair value of the Group’s other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated statement of financial position |
Explanation on the adjustments: (continued)
Impact on January 1, 2018 (continued)
The Group’s financial instruments issued by foreign partnerships are measured by using the discounted cash flow method, which derives present value estimates by discounting expected future operating effectiveness and free cash flows projections. |
By adopting IFRS 15, the Group’s provision for sales allowance amounted to NT$70,156 thousand is presented as current refund liabilities from January 1, 2018, which was previously presented as current provisions.
The Group’s financial instruments issued by foreign companies are measured by the comparable company valuation (EV/EBITDA ratio and P/B ratio). |
When initially adopting IFRS 15, the Group recognized adjustments in the statement of financial position which resulted to temporary differences. Accordingly, as of January 1, 2018, deferred tax assets decreased by NT$626 thousand, deferred tax liabilities increased by NT$8,067 thousand and retained earnings decreased by NT$8,693 thousand.
Impact on December 31, 2018
5. | The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality. |
(d) |
The following table shows the movements of Level 3 for the years ended December 31, 2020 and |
Under IFRS 15, the Group provides assembly and testing service to create or enhance a highly customized product and the customer controls the asset as it is created or enhanced, the revenue will be recognized based on the progress towards completion. As a result, contract assets and revenue increased by NT$300,376 thousand as
December 31, 2020 | ||||||||||||
Debt instruments | Equity instruments | Total | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | 11,038 | 121,808 | 132,846 | |||||||||
Gains or losses recognized in profit or loss | ||||||||||||
Recorded as non-operating expenses | (670 | ) | — | (670 | ) | |||||||
Gains or losses recognized in other comprehensive income | ||||||||||||
Recorded as unrealized gains on valuation of financial assets at fair value through other comprehensive income | — | 140,199 | 140,199 | |||||||||
December 31 | 10,368 | 262,007 | 272,375 | |||||||||
|
Under IFRS 15, when revenue is recognized based on the progress towards completion, work in process and finished goods in ending inventories should be transferred to cost of revenue at the end of the reporting period. As a result, inventories decreased and cost of revenue increased by NT$237,271 thousand as of December 31, 2018.
|
Under IFRS 15, when contract assets and revenue are recognized based on the progress towards completion, loss allowance is recognized based on the expected credit loss model. As a result, expected credit loss increased and contract assets decreased by NT$135 thousand for the year ended December 31, 2018.
|
Under IFRS 15, when contract assets and revenue are recognized based on the progress towards completion, foreign exchange loss is also recognized using the exchange rates prevailing at the statement of financial position date. As a result, foreign exchange loss increased and contract assets decreased by NT$406 thousand for the year ended December 31, 2018.
|
In summary, foreign exchange loss recognized would result to a temporary difference. Accordingly, deferred tax assets increased and income tax expense decreased by NT$81 thousand for the year ended December 31, 2018.
|
By adopting IFRS 15, advance payments amounted to NT$1,432 thousand in certain assembly and testing service contracts were presented as contract liabilities as of December 31, 2018, which were previously presented as receipts in advance.
December 31, 2021 | ||||||||||||
Debt instruments | Equity instruments | Total | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
January 1 | 10,368 | 262,007 | 272,375 | |||||||||
Gains or losses recognized in profit or loss | ||||||||||||
Recorded as non-operating expenses | (941 | ) | — | (941 | ) | |||||||
Gains or losses recognized in other comprehensive income | ||||||||||||
Recorded as unrealized gains on valuation of financial assets at fair value through other comprehensive income | — | 122,514 | 122,514 | |||||||||
Sold in the period | (9,427 | ) | — | (9,427 | ) | |||||||
December 31 | — | 384,521 | 384,521 | |||||||||
| The Group performs the fair value measurements being categorized within Level 3 with assistance from specialist. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of |
(f) | The following is the qualitative information and sensitivity analysis of changes in significant unobservable inputs under valuation model used in Level 3 fair value measurement: |
Fair value as of December 31, 2020 | Valuation technique | Significant unobservable input | Range (weighted average method) | Relationship of inputs to fair value | ||||||||||||||
NT$000 | ||||||||||||||||||
Non-derivative debt instrument: | ||||||||||||||||||
Foreign partnership interests | 10,368 | Discounted cash flow | Discount rate | | 0.30 | % | The lower the discount rate, the higher the fair value | |||||||||||
Non-derivative equity instrument: | ||||||||||||||||||
Foreign unlisted stocks | 262,007 | Comparable companies | | Price to book ratio multiple | | 1.97 | The higher the multiple, the higher the fair value | |||||||||||
| Enterprise value to EBITDA multiple | | 12.00 | The higher the multiple, the higher the fair value | ||||||||||||||
| Discount for lack of marketability | | 15.80 | % | The higher the discount for lack of marketability, the lower the fair value |
Fair value as of December 31, 2021 | Valuation technique | Significant unobservable input | Range (weighted average method) | Relationship of inputs to fair value | ||||||||||||||
NT$000 | ||||||||||||||||||
Non-derivative equity instrument: | ||||||||||||||||||
Foreign unlisted stocks | 384,521 | Comparable companies | | Price to book ratio multiple | | 3.46 | The higher the multiple, the higher the fair value | |||||||||||
| Enterprise value to EBITDA multiple | | 9.43 | The higher the multiple, the higher the fair value | ||||||||||||||
| Discount for lack of marketability | | 15.80 | % | The higher the discount for lack of marketability, the lower the fair value |
(g) | The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets categorized within Level 3 if the inputs used to valuation models have changed: |
December 31, 2020 | ||||||||||||||||||||
Recognized in profit or loss | Recognized in other comprehensive income | |||||||||||||||||||
Input | Change | Favorable change | Unfavorable change | Favorable change | Unfavorable change | |||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||
Financial assets: | ||||||||||||||||||||
Foreign partnership interests | Discount rate | Note | — | — | — | — | ||||||||||||||
Foreign unlisted stocks | Price to book ratio multiple | ± 1% | — | — | 30 | 30 | ||||||||||||||
Enterprise value to EBITDA multiple | ± 1% | — | — | 2,153 | 2,153 | |||||||||||||||
Discount for lack of marketability | ± 1% | — | — | 3,142 | 3,084 | |||||||||||||||
— | — | 5,325 | 5,267 | |||||||||||||||||
Note: | Based on the Group’s assessment, change in input would not have significant impact on profit or loss or other comprehensive income. |
December 31, 2021 | ||||||||||||||||||||||||
Recognized in profit or loss | Recognized in other comprehensive income | |||||||||||||||||||||||
Input | Change | Favorable change | Unfavorable change | Favorable change | Unfavorable change | |||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Foreign unlisted stocks | Price to book ratio multiple | ±1% | — | — | 46 | 46 | ||||||||||||||||||
Enterprise value to EBITDA multiple | ±1% | — | — | 3,443 | 3,443 | |||||||||||||||||||
Discount for lack of marketability | ±1% | — | — | 4,585 | 4,585 | |||||||||||||||||||
— | — | 8,074 | 8,074 | |||||||||||||||||||||
c) |
Other matter |
Explanation
Impactpandemic situation to ensure employees’ health and the normal operation of production lines. Meanwhile, the Group maintains sufficient stock of main raw materials required for production. To reduce the risk of raw materials disruption, the Group takes the proper preventive plan based on December 31, 2018 (continued)
44. | Segment Information |
General information |
By adopting
b) | Measurement of segment information |
c) | Information about segment profit or loss |
Year ended December 31, 2019 | ||||||||||||||||||||||||||||
Testing | Assembly | LCDD | Bumping | Others | Elimination | Total | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
External customers | 4,257,800 | 5,148,877 | 6,922,205 | 4,008,999 | — | — | 20,337,881 | |||||||||||||||||||||
Inter-segment | — | — | — | — | 32,808 | (32,808 | ) | — | ||||||||||||||||||||
Total revenue | 4,257,800 | 5,148,877 | 6,922,205 | 4,008,999 | 32,808 | (32,808 | ) | 20,337,881 | ||||||||||||||||||||
Operating profit (loss) | 709,142 | (227,096 | ) | 1,740,720 | 232,404 | 1,931 | 18 | 2,457,119 | ||||||||||||||||||||
Depreciation expenses | (802,740 | ) | (521,311 | ) | (1,796,951 | ) | (604,553 | ) | (6,359 | ) | — | (3,731,914 | ) | |||||||||||||||
Share of profit (loss) of associates | — | — | — | — | (370,351 | ) | 215,425 | (154,926 | ) | |||||||||||||||||||
Interest income | — | — | — | — | 64,368 | — | 64,368 | |||||||||||||||||||||
Interest expense | — | — | — | — | (171,075 | ) | — | (171,075 | ) | |||||||||||||||||||
Purchase of property, plant and equipment | 764,105 | 548,063 | 3,077,806 | 506,635 | 47 | — | 4,896,656 | |||||||||||||||||||||
Year ended December 31, 2020 | ||||||||||||||||||||||||||||
Testing | Assembly | LCDD | Bumping | Others | Elimination | Total | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
External customers | 5,002,730 | 6,001,964 | 7,023,003 | 4,983,684 | — | — | 23,011,381 | |||||||||||||||||||||
Inter-segment | — | — | — | — | 39,646 | (39,646 | ) | — | ||||||||||||||||||||
Total revenue | 5,002,730 | 6,001,964 | 7,023,003 | 4,983,684 | 39,646 | (39,646 | ) | 23,011,381 | ||||||||||||||||||||
Operating profit (loss) | 1,333,682 | 67,730 | 1,687,986 | 487,323 | (10,230 | ) | 11 | 3,566,502 | ||||||||||||||||||||
Depreciation expenses | (853,829 | ) | (523,341 | ) | (2,213,504 | ) | (578,890 | ) | (5,955 | ) | — | (4,175,519 | ) | |||||||||||||||
Share of profit (loss) of associates | — | — | — | — | (320,578 | ) | 173,249 | (147,329 | ) | |||||||||||||||||||
Interest income | — | — | — | — | 27,778 | — | 27,778 | |||||||||||||||||||||
Interest expense | — | — | — | — | (162,400 | ) | — | (162,400 | ) | |||||||||||||||||||
Purchase of property, plant and equipment | 887,204 | 803,693 | 2,143,401 | 298,834 | 483 | — | 4,133,615 | |||||||||||||||||||||
Year ended December 31, 2021 | ||||||||||||||||||||||||||||
Testing | Assembly | LCDD | Bumping | Others | Elimination | Total | ||||||||||||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
External customers | 5,899,600 | 7,963,714 | 8,211,099 | 5,325,622 | — | — | 27,400,035 | |||||||||||||||||||||
Inter-segment | — | — | — | — | 43,808 | (43,808 | ) | — | ||||||||||||||||||||
Total revenue | 5,899,600 | 7,963,714 | 8,211,099 | 5,325,622 | 43,808 | (43,808 | ) | 27,400,035 | ||||||||||||||||||||
Operating profit (loss) | 1,814,021 | 857,304 | 2,336,394 | 561,642 | (6,987 | ) | 15 | 5,562,389 | ||||||||||||||||||||
Depreciation expenses | (921,999 | ) | (576,138 | ) | (2,579,150 | ) | (549,020 | ) | (7,805 | ) | — | (4,634,112 | ) | |||||||||||||||
Share of profit (loss) of associates | — | — | — | — | 1,211,177 | (585,444 | ) | 625,733 | ||||||||||||||||||||
Interest income | — | — | — | — | 9,980 | — | 9,980 | |||||||||||||||||||||
�� | ||||||||||||||||||||||||||||
Interest expense | — | — | — | — | (120,998 | ) | — | (120,998 | ) | |||||||||||||||||||
Purchase of property, plant and equipment | 1,841,359 | 1,553,475 | 2,748,697 | 408,751 | 420 | — | 6,552,702 | |||||||||||||||||||||
d) | Reconciliation for segment income (loss) |
e) | Information on products and services |
Year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||
NT$000 | % | NT$000 | % | NT$000 | % | |||||||||||||||||||
Testing | 4,257,800 | 21 | 5,002,730 | 22 | 5,899,600 | 22 | ||||||||||||||||||
Assembly | 5,148,877 | 25 | 6,001,964 | 26 | 7,963,714 | 29 | ||||||||||||||||||
LCDD | 6,922,205 | 34 | 7,023,003 | 30 | 8,211,099 | 30 | ||||||||||||||||||
Bumping | 4,008,999 | 20 | 4,983,684 | 22 | 5,325,622 | 19 | ||||||||||||||||||
20,337,881 | 100 | 23,011,381 | 100 | 27,400,035 | 100 | |||||||||||||||||||
f) | Geographical information |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||
Revenue | ||||||||||||
ROC | 15,875,027 | 18,341,726 | 21,608,567 | |||||||||
Japan | 1,905,032 | 1,291,026 | 1,768,460 | |||||||||
Singapore | 1,333,114 | 1,838,394 | 1,630,733 | |||||||||
PRC | 789,496 | 1,105,535 | 1,899,362 | |||||||||
Others | 435,212 | 434,700 | 492,913 | |||||||||
20,337,881 | 23,011,381 | 27,400,035 | ||||||||||
December 31, 2020 | December 31, 2021 | |||||||
NT$000 | NT$000 | |||||||
Non-current assets | ||||||||
ROC | 18,913,501 | 21,506,565 | ||||||
PRC | 117 | 86 | ||||||
Others | 11,845 | 6,245 | ||||||
18,925,463 | 21,512,896 | |||||||
g) | Major customer information |
F-82
Year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
NT$000 | NT$000 | NT$000 | ||||||||||||||||||||||
Customers | ||||||||||||||||||||||||
Customer A | 4,756,755 | 23 | 5,088,544 | 22 | 5,681,277 | 21 | ||||||||||||||||||
Customer M | 1,259,269 | 6 | 1,674,801 | 7 | 2,832,088 | 10 | ||||||||||||||||||
Customer K | 2,419,612 | 12 | 2,332,914 | 10 | 2,519,631 | 9 | ||||||||||||||||||
Customer B | 1,679,344 | 8 | 2,365,945 | 10 | 2,484,611 | 9 | ||||||||||||||||||
Customer C | 2,048,260 | 10 | 2,143,130 | 9 | 2,268,439 | 8 |
45. | Financial Statements Schedule: Valuation and Qualifying Accounts |
January 1 | Additions charged to expense or deduction of revenue | Deduction / Write-offs / Reversal | December 31 | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Year of 2019 : | ||||||||||||||||
Allowance for impairment of property, plant and equipment | 317,593 | 9,938 | (134,191 | ) | 193,340 | |||||||||||
Allowance for impairment of obsolescence and decline in market value of inventories | 36,157 | 27,341 | — | 63,498 | ||||||||||||
Provision for deficiency compensation | 29,352 | 5,204 | (32,558 | ) | 1,998 | |||||||||||
Sales for allowance | 32,627 | 63,863 | (70,490 | ) | 26,000 | |||||||||||
Year of 2020 : | ||||||||||||||||
Allowance for impairment of property, plant and equipment | 193,340 | — | (11,338 | ) | 182,002 | |||||||||||
Allowance for impairment of obsolescence and decline in market value of inventories | 63,498 | 16,317 | — | 79,815 | ||||||||||||
Provision for deficiency compensation | 1,998 | 4,358 | (2,893 | ) | 3,463 | |||||||||||
Sales for allowance | 26,000 | 21,916 | (38,052 | ) | 9,864 |
January 1 | Additions charged to expense or deduction of revenue | Deduction / Write-offs / Reversal | December 31 | |||||||||||||
NT$000 | NT$000 | NT$000 | NT$000 | |||||||||||||
Year of 2021 : | ||||||||||||||||
Allowance for impairment of property, plant and equipment | 182,002 | 4,843 | (3,666 | ) | 183,179 | |||||||||||
Allowance for impairment of obsolescence and decline in market value of inventories | 79,815 | 41,771 | — | 121,586 | ||||||||||||
Provision for deficiency compensation | 3,463 | 11,898 | (11,080 | ) | 4,281 | |||||||||||
Sales for allowance | 9,864 | 34,744 | (34,759 | ) | 9,849 |