AUO : 3Q2022(English)

(2409)   Report

Stock Code:2409 AUO CORPORATION (FORMERLY AU OPTRONICS CORP.) AND SUBSIDIARIES Consolidated Financial Statements With Independent Auditors' Review Report For the Nine Months Ended September 30, 2022 and 2021 The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail. Independent Auditors' Review Report To the Board of Directors of AUO Corporation: Introduction We have reviewed the accompanying consolidated balance sheets of AUO Corporation (formerly AU Optronics Corp.) and its subsidiaries ("the Company") as of September 30, 2022 and 2021, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2022 and 2021, as well as the changes in equity and cash flows for the nine months ended September 30, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review We conducted our reviews in accordance with Statement of Auditing Standard 65, " Review of Financial Information Performed by the Independent Auditor of the Entity" . A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of September 30, 2022 and 2021, and its consolidated financial performance for the three months and nine months ended September 30, 2022 and 2021, as well as its consolidated cash flows for the nine months ended September 30, 2022 and 2021 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The engagement partners on the reviews resulting in this independent auditors' review report are Yu, Chi-Lung and Yu, Wan-Yuan. KPMG Hsinchu, Taiwan (Republic of China) October 26, 2022 Notes to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2022 and 2021 AUO CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets September 30, 2022, December 31, 2021, and September 30, 2021 (Expressed in thousands of New Taiwan dollars) September 30, 2022 December 31, 2021 September 30, 2021 Assets Amount % Amount % Amount % Current assets: 1100 Cash and cash equivalents (Note 6(1)) $ 80,613,403 21 79,944,686 19 87,922,001 21 1110 Financial assets at fair value through profit or loss－ current (Note 6(2)) 595,797 - 159,270 - 38,873 - 1136 Financial assets at amortised cost－current (Note - - 10,000,000 2 10,000,000 2 6(4)) 1170 Notes and accounts receivable, net (Note 6(5)) 18,122,805 5 59,093,573 14 63,924,293 15 1180 Accounts receivable from related parties, net (Notes 1,161,687 - 2,479,395 1 1,719,905 - 6(5)&7) 1210 Other receivables from related parties (Note 7) 6,598 - 20,699 - 9,090 - 1220 Current tax assets 78,037 - 60,802 - 188,421 - 130X Inventories (Note 6(6)) 29,813,800 8 34,489,088 8 34,736,308 8 1460 Noncurrent assets held for sale (Note 6(9)) - - - - 171,769 - 1476 Other current financial assets (Notes 6(5),(7),(9), 3,710,906 1 2,186,682 - 708,034 - (20)&8) 1479 Other current assets (Note 6(13)) 4,670,688 1 3,592,203 1 4,527,776 1 138,773,721 36 192,026,398 45 203,946,470 47 Noncurrent assets: 1517 Financial assets at fair value through other comprehensive income－noncurrent (Note 6(3)) 1,541,447 - 1,308,157 - 738,513 - 1550 Investments in equity-accounted investees (Notes 6(7)&7) 31,873,635 8 25,447,133 6 22,093,920 5 1600 Property, plant and equipment (Notes 6(9),7&8) 179,351,456 47 171,222,045 40 173,211,642 40 1755 Right-of-use assets (Notes 6(10)&8) 10,259,216 3 10,638,373 3 10,728,440 3 1760 Investment property (Note 6(11)) 1,407,497 - 1,437,692 - 1,453,466 - 1780 Intangible assets (Note 6(12)) 12,561,381 3 11,756,955 3 12,756,737 3 1840 Deferred tax assets 6,584,764 2 6,466,588 2 6,016,585 1 1900 Other noncurrent assets (Notes 6(4),(13)&8) 4,912,422 1 4,507,705 1 4,142,067 1 248,491,818 64 232,784,648 55 231,141,370 53 Total Assets $ 387,265,539 100 424,811,046 100 435,087,840 100 September 30, 2022 December 31, 2021 September 30, 2021 Liabilities and Equity Amount % Amount % Amount % Current liabilities: 2100 Short-term borrowings (Note 6(14)) $ 180,391 - 45,324 - 30,000 - 2120 Financial liabilities at fair value through profit or loss－current (Notes 6(2)&8) 831,018 - 132,797 - 246,582 - 2170 Notes and accounts payable 33,784,974 9 54,574,143 13 53,520,811 12 2180 Accounts payable to related parties (Note 7) 4,621,539 1 8,825,361 2 8,242,188 2 2213 Equipment and construction payable (Note 7) 6,349,903 2 4,317,199 1 3,364,154 1 2220 Other payables to related parties (Note 7) 49,289 - 72,411 - 21,859 - 2230 Current tax liabilities 2,650,330 1 2,607,235 1 3,440,319 1 2250 Provisions－current (Note 6(16)) 819,687 - 942,290 - 638,647 - 2280 Lease liabilities－current (Note 6(10)) 577,567 - 534,706 - 515,490 - 2399 Other current liabilities (Notes 6(8),(9),(20)&(21)) 24,477,455 6 34,869,439 8 27,891,099 6 2322 Current installments of long-term borrowings (Notes 6(15)&8) 9,261,745 3 16,833,597 4 25,218,210 6 2522 Capital reduction payable (Note 6(18)) 19,248,490 5 - - - - 102,852,388 27 123,754,502 29 123,129,359 28 Noncurrent liabilities: 2527 Contract liabilities－nonccurrent (Note 6(20)) 6,864,630 2 8,739,846 2 9,989,990 2 2540 Long-term borrowings, excluding current installments (Notes 6(15)&8) 58,331,924 15 37,821,267 9 44,334,029 10 2550 Provisions－noncurrent (Note 6(16)) 882,659 - 946,018 - 980,054 - 2570 Deferred tax liabilities 5,046,831 1 4,224,720 1 3,073,373 1 2580 Lease liabilities－noncurrent (Note 6(10)) 8,785,638 2 9,190,535 2 9,273,142 2 2600 Other noncurrent liabilities 1,834,035 1 2,167,687 1 2,025,083 1 81,745,717 21 63,090,073 15 69,675,671 16 Total liabilities 184,598,105 48 186,844,575 44 192,805,030 44 Equity (Notes 6(7)&(18)): Equity attributable to shareholders of AUO Corporation: 3100 Common stock 76,993,961 20 96,242,451 23 96,242,451 22 3200 Capital surplus 61,899,611 16 60,057,001 14 61,195,362 14 3300 Retained earnings 60,226,540 16 80,669,998 19 77,692,901 18 3400 Other components of equity (2,189,532) (1) (4,743,182) (1) (4,918,229) (1) 3500 Treasury shares (392,370) - (439,228) - (439,228) - 196,538,210 51 231,787,040 55 229,773,257 53 Non-controlling interests 36XX Non-controlling interests 6,129,224 1 6,179,431 1 12,509,553 3 Total equity 202,667,434 52 237,966,471 56 242,282,810 56 Total Liabilities and Equity $ 387,265,539 100 424,811,046 100 435,087,840 100 See accompanying notes to consolidated financial statements. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the Three and Nine Months Ended September 30, 2022 and 2021 thousands of New Taiwan dollars, except for Earnings per share) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 4110 Revenue Amount % Amount % Amount % Amount % $ 50,571,418 102 100,073,058 101 196,625,449 101 279,575,396 101 4190 Less: sales return and discount 839,077 2 1,018,072 1 2,480,804 1 1,924,291 1 Net revenue (Notes 6(20)&7) 49,732,341 100 99,054,986 100 194,144,645 100 277,651,105 100 5000 Cost of sales (Notes 6(6),(10),(17),(21),(22)&7) 56,996,483 115 71,641,561 72 187,989,812 97 204,485,703 74 Gross profit (loss) (7,264,142) (15) 27,413,425 28 6,154,833 3 73,165,402 26 Operating expenses (Notes 6(10),(17),(19),(21),(22)&7): 6100 Selling and distribution expenses 1,237,583 3 1,300,024 1 3,656,660 2 3,767,318 1 6200 General and administrative expenses 1,997,899 4 2,355,190 3 5,954,968 3 7,078,718 3 6300 Research and development expenses 3,215,007 6 3,331,479 3 9,604,693 5 9,589,302 3 Total operating expenses 6,450,489 13 6,986,693 7 19,216,321 10 20,435,338 7 Profit (loss) from operations (13,714,631) (28) 20,426,732 21 (13,061,488) (7) 52,730,064 19 Non-operating income and expenses: 7100 Interest income (Note 6(23)) 199,303 - 98,359 - 483,127 - 329,138 - 7010 Other income (Notes 6(10),(23)&7) 1,181,323 2 283,936 - 2,392,287 1 862,710 1 7020 Other gains and losses (Notes 6(23)) (37,881) - 78,461 - 38,280 - 555,294 - 7050 Finance costs (Notes 6(9)&(23)) (330,927) - (522,899) - (1,004,896) - (1,809,106) (1) Share of profit of equity-accounted investees (Note 7060 6(7)) 1,301,391 3 526,184 - 2,122,458 1 1,681,740 1 Total non-operating income and expenses 2,313,209 5 464,041 - 4,031,256 2 1,619,776 1 7900 Profit (loss) before income tax (11,401,422) (23) 20,890,773 21 (9,030,232) (5) 54,349,840 20 7950 Less: income tax expense (benefit) (Note 6(24)) (911,660) (2) 926,890 1 1,982,117 1 2,681,986 1 Profit (loss) for the period 8200 (10,489,762) (21) 19,963,883 20 (11,012,349) (6) 51,667,854 19 8300 Other comprehensive income (Notes 6(7),(18)&(24)): 8310 Items that will never be reclassified to profit or loss 8316 Unrealized gain (loss) on equity investments at fair value through other comprehensive income (24,586) - (6,059) - (72,102) - (29,579) - 8320 Equity-accounted investees - share of other comprehensive income (239,547) (1) (665,453) - (1,374,883) - (619,473) - 8360 Items that are or may be reclassified (264,133) (1) (671,512) - (1,446,985) - (649,052) - subsequently to profit or loss 8361 Foreign operations - foreign currency translation differences 2,024,850 4 141,908 - 4,163,566 2 (1,304,618) (1) 8370 Equity-accounted investees - share of other comprehensive income 405,860 1 (67,819) - 775,567 - (29,880) - 8399 Related tax (389,637) (1) (26,353) - (849,661) - 207,115 - Other comprehensive income (loss), net of tax 2,041,073 4 47,736 - 4,089,472 2 (1,127,383) (1) 8300 1,776,940 3 (623,776) - 2,642,487 2 (1,776,435) (1) Total comprehensive income (loss) for the period $ 8500 (8,712,822) (18) 19,340,107 20 (8,369,862) (4) 49,891,419 18 Profit (loss) attributable to: 8610 Shareholders of AUO Corporation $ (10,425,620) (21) 19,310,255 19 (10,893,703) (6) 50,675,294 18 8620 Non-controlling interests $ (64,142) - 653,628 1 (118,646) - 992,560 1 Total comprehensive income (loss) attributable to: (10,489,762) (21) 19,963,883 20 (11,012,349) (6) 51,667,854 19 8710 Shareholders of AUO Corporation $ (8,699,016) (18) 18,658,363 19 (8,313,984) (4) 49,039,167 18 8720 Non-controlling interests $ (13,806) - 681,744 1 (55,878) - 852,252 - Earnings (loss) per share (NT$, Note 6(25)) (8,712,822) (18) 19,340,107 20 (8,369,862) (4) 49,891,419 18 $ (1.23) 2.03 (1.18) 5.33 9750 Basic earnings (loss) per share 9850 Diluted earnings (loss) per share $ (1.23) 2.01 (1.18) 5.17 See accompanying notes to consolidated financial statements. (English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards AUO CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the Nine Months Ended September 30, 2022 and 2021 (Expressed in thousands of New Taiwan dollars) Equity Attributable to Shareholders of AUO Corporation Other Components of Equity Unrealized Gains (Losses) on Financial Assets at Fair Equity Capital Stock Retained Earnings Value through Attributable to Cumulative Other Shareholders Non- Common Unappropriated Translation Comprehensive Treasury of AUO controlling Balance at January 1, 2021 Stock Capital Surplus Legal Reserve Special Reserve Earnings Subtotal Differences Income Subtotal Shares Corporation Interests Total Equity $ 96,242,451 60,587,684 7,691,688 2,005,384 20,561,210 30,258,282 (3,206,520) (63,783) (3,270,303) (1,013,423) 182,804,691 10,985,674 193,790,365 Appropriation of earnings: Legal reserve - - 735,456 - (735,456) - - - - - - - - Special reserve - - - 1,264,919 (1,264,919) - - - - - - - - Cash dividends distributed to shareholders - - - - (2,850,967) (2,850,967) - - - - (2,850,967) - (2,850,967) Profit for the period - - - - 50,67