CTCI CORPORATION AND SUBSIDIARIES · 2020. 9. 4. · Other current liabilities ( 1,758,589) ( 4,488,308) CTCI CORPORATION AND SUBSIDIARIES . CTCI CORPORATION AND SUBSIDIARIES JUNE
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CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS’ REVIEW REPORT
JUNE 30, 2020 AND 2019
------------------------------------------------------------------------------------------------------------------------------------
For the convenience of readers and for information purpose only, the auditors’ report and the accompanying
financial statements have been translated into English from the original Chinese version prepared and used in
the Republic of China. In the event of any discrepancy between the English version and the original Chinese
version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and
financial statements shall prevail.
CTCI CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
JUNE 30, 2020, DECEMBER 31, 2019 AND JUNE 30, 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(The balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)
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June 30, 2020 December 31, 2019 June 30, 2019 Assets Notes AMOUNT % AMOUNT % AMOUNT %
Current assets 1100 Cash and cash equivalents 6(1) $ 12,504,957 18 $ 20,767,581 30 $ 17,027,571 25 1110 Financial assets at fair value
through profit or loss - current 6(2)
3,697,500 5 275,845 1 382,122 1 1120 Financial assets at fair value
through other comprehensive
income - current
6(3)
431,760 1 464,943 1 529,350 1 1136 Financial assets at amortized
cost - current 6(4)
768,789 1 277,164 - 72,903 - 1140 Contract assets - current 6(24) 19,349,327 28 18,653,485 27 18,840,920 27 1150 Notes receivable, net 6(5) 15,938 - 63,360 - 109,921 - 1170 Accounts receivable, net 6(5) 5,223,107 8 4,513,304 7 4,714,762 7 1180 Accounts receivable - related
parties 7
915,336 1 760,878 1 496,773 1 1200 Other receivables 126,171 - 245,735 - 230,637 - 1210 Other receivables - related
parties 7
35,343 - - - - - 1220 Current income tax assets 222,045 - 204,024 - 150,938 - 130X Inventories 158,569 - 144,407 - 280,426 - 1410 Prepayments 6(6) 3,630,514 5 2,758,670 4 5,291,567 8 1460 Non-current assets or disposal
groups classified as held for
sale, net
- - 38,380 - - - 1470 Other current assets 6(15) 1,323,116 2 6,817 - - - 11XX Total current assets 48,402,472 69 49,174,593 71 48,127,890 70 Non-current assets 1517 Financial assets at fair value
through other comprehensive
income - non-current
6(3)
1,341,075 2 858,499 1 768,409 1 1535 Financial assets at amortized
cost - non-current 6(4) and 8
163,360 - 130,720 - 107,880 - 1550 Investments accounted for
using the equity method 6(7)
2,180,202 3 2,173,160 3 3,175,468 5 1600 Property, plant and equipment,
net 6(8) and 8
12,678,681 18 11,788,472 17 10,706,079 16 1755 Right-of-use assets 6(9) 409,800 1 443,854 1 405,955 1 1760 Investment property, net 6(10) and 8 801,774 1 803,823 1 805,976 1 1780 Intangible assets 190,666 1 191,971 - 191,347 - 1840 Deferred income tax assets 766,541 1 784,379 1 494,244 1 1900 Other non-current assets 6(11) and 8 2,881,959 4 3,145,040 5 3,700,098 5 15XX Total non-current assets 21,414,058 31 20,319,918 29 20,355,456 30 1XXX Total assets $ 69,816,530 100 $ 69,494,511 100 $ 68,483,346 100
(Continued)
CTCI CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
JUNE 30, 2020, DECEMBER 31, 2019 AND JUNE 30, 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(The balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)
The accompanying notes are an integral part of these consolidated financial statements.
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June 30, 2020 December 31, 2019 June 30, 2019 Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities 2100 Short-term borrowings 6(12) $ 5,367,324 8 $ 6,163,306 9 $ 10,396,242 15 2110 Short-term notes and bills
payable
17,993 - 199,921 - 250,913 - 2120 Financial liabilities at fair value
through profit or loss - current 6(2)
33,784 - 54,716 - 4,487 - 2130 Contract liabilities - current 6(24) 14,704,247 21 12,157,272 18 14,196,426 21 2150 Notes payable 7,048 - 48,369 - 22,229 - 2170 Accounts payable 6(13) 9,869,024 14 11,708,290 17 9,664,066 14 2180 Accounts payable - related
parties 7
485,471 1 648,957 1 792,220 1 2200 Other payables 6(14) 3,887,620 6 2,848,021 4 4,088,570 6 2220 Other payables - related parties 7 67,801 - - - - - 2230 Current income tax liabilities 210,130 - 217,180 - 343,299 1 2280 Current lease liabilities 7 127,382 - 146,499 - 126,174 - 2300 Other current liabilities 6(15)(17) 354,459 - 1,991,941 3 3,229,848 5 21XX Total current liabilities 35,132,283 50 36,184,472 52 43,114,474 63 Non-current liabilities 2530 Bonds payable 6(16) 8,984,460 13 5,989,529 9 - - 2540 Long-term borrowings 6(17) 5,381,947 8 5,390,673 8 3,423,573 5 2570 Deferred income tax liabilities 249,248 - 216,697 - 248,080 - 2580 Non-current lease liabilities 7 266,521 - 281,103 - 252,473 1 2600 Other non-current liabilities 6(18) 1,875,954 3 2,085,040 3 2,181,152 3 25XX Total non-current
liabilities
16,758,130 24 13,963,042 20 6,105,278 9 2XXX Total liabilities 51,890,413 74 50,147,514 72 49,219,752 72 Equity attributable to owners of
parent
Share capital 6(21) 3110 Common stock 7,633,326 11 7,633,182 11 7,633,100 11 Capital surplus 6(22) 3200 Capital surplus 3,993,602 6 3,730,448 5 3,648,444 5 Retained earnings 6(23) 3310 Legal reserve 3,278,010 5 3,741,648 5 3,741,648 6 3320 Special reserve 1,180,439 2 762,377 1 762,377 1 3350 Unappropriated retained
earnings
310,227 - 1,481,062 2 806,242 1 Other equity interest 3400 Other equity interest ( 1,163,517 ) ( 2 ) ( 1,180,439 ) ( 1 ) ( 222,449 ) - 3500 Treasury stocks 6(21) ( 11,835 ) - ( 11,835 ) - ( 11,835 ) - 31XX Equity attributable to
owners of the parent
15,220,252 22 16,156,443 23 16,357,527 24 36XX Non-controlling interest 4(3) 2,705,865 4 3,190,554 5 2,906,067 4 3XXX Total equity 17,926,117 26 19,346,997 28 19,263,594 28 Significant contingent liabilities
and unrecognized contract
commitments
9
3X2X Total liabilities and equity $ 69,816,530 100 $ 69,494,511 100 $ 68,483,346 100
CTCI CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE AMOUNTS)
(UNAUDITED)
The accompanying notes are an integral part of these consolidated financial statements.
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Three months ended June 30 Six months ended June 30
2020 2019 2020 2019
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
4000 Operating revenue 6(24) and 7 $ 13,261,500 100 $ 13,381,465 100 $ 24,705,860 100 $ 27,093,923 100 5000 Operating costs 6(29)(30) and 7 ( 12,363,414 ) ( 93 ) ( 12,587,382 ) ( 94 ) ( 22,819,348 ) ( 92 ) ( 25,261,270 ) ( 93 ) 5900 Gross Profit 898,086 7 794,083 6 1,886,512 8 1,832,653 7 Operating expenses 6(29)(30) 6200 General and administrative expenses ( 421,217 ) ( 4 ) ( 395,353 ) ( 3 ) ( 802,859 ) ( 4 ) ( 804,520 ) ( 3 ) 6300 Research and development expenses ( 17,255 ) - ( 30,847 ) - ( 47,126 ) - ( 56,020 ) - 6000 Total operating expenses ( 438,472 ) ( 4 ) ( 426,200 ) ( 3 ) ( 849,985 ) ( 4 ) ( 860,540 ) ( 3 ) 6900 Operating income 459,614 3 367,883 3 1,036,527 4 972,113 4 Non-operating income and expenses 7100 Interest income 6(25) 37,700 - 73,665 - 71,893 - 131,825 - 7010 Other income 6(26) 32,698 - 24,994 - 57,143 - 42,232 - 7020 Other gains and losses 6(27) ( 52,075 ) - 142,557 1 ( 226,908 ) ( 1 ) 170,421 1 7050 Finance costs 6(28) ( 87,527 ) ( 1 ) ( 42,518 ) - ( 153,225 ) - ( 124,575 ) - 7060 Share of profit (loss) of associates and joint ventures accounted for
using the equity method
6(7)
54,284 1 ( 59,845 ) - 75,520 - ( 208,525 ) ( 1 ) 7000 Total non-operating income and expenses ( 14,920 ) - 138,853 1 ( 175,577 ) ( 1 ) 11,378 - 7900 Profit before income tax 444,694 3 506,736 4 860,950 3 983,491 4 7950 Income tax expense 6(31) ( 163,560 ) ( 1 ) ( 106,033 ) ( 1 ) ( 299,423 ) ( 1 ) ( 239,121 ) ( 1 ) 8200 Profit for the period $ 281,134 2 $ 400,703 3 $ 561,527 2 $ 744,370 3
Components of other comprehensive income that will not be
reclassified to profit or loss
8311 Actuarial losses on defined benefit plans $ - - $ - - ( $ 244 ) - $ - - 8316 Unrealized (losses) gains from investments in equity instruments
measured at fair value through other comprehensive income
6(3)
35,128 - 11,088 - ( 54,795 ) - 47,982 - Components of other comprehensive income that will be reclassified
to profit or loss
8361 Cumulative translation differences of foreign operations ( 69,511 ) - ( 35,316 ) - 43,574 - ( 11,345 ) - 8300 Total other comprehensive income (loss) for the period ( $ 34,383 ) - ( $ 24,228 ) - ( $ 11,465 ) - $ 36,637 -
8500 Total comprehensive income for the period $ 246,751 2 $ 376,475 3 $ 550,062 2 $ 781,007 3
Profit attributable to: 8610 Owners of the parent $ 153,356 1 $ 272,064 2 $ 310,472 1 $ 493,537 2 8620 Non-controlling interest 127,778 1 128,639 1 251,055 1 250,833 1 Total $ 281,134 2 $ 400,703 3 $ 561,527 2 $ 744,370 3
Comprehensive income attributable to: 8710 Owners of the parent $ 134,839 1 $ 272,752 2 $ 325,723 1 $ 516,255 2 8720 Non-controlling interest 111,912 1 103,723 1 224,339 1 264,752 1 Total $ 246,751 2 $ 376,475 3 $ 550,062 2 $ 781,007 3
9750 Basic earnings per share (in NT dollars) 6(32) $ 0.20 $ 0.36 $ 0.41 $ 0.65
9850 Diluted earnings per share (in NT dollars) 6(32) $ 0.20 $ 0.36 $ 0.41 $ 0.65
CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)
(UNAUDITED)
Equity attributable to owners of the parent
Retained Earnings Other Equity Interest
Notes
Common stock
Capital surplus
Legal reserve
Special reserve
Unappropriated
earnings
Cumulative
translation
differences of
foreign operations
Unrealized gains
(losses) from
financial assets
measured at fair
value through
other
comprehensive
income
Treasury
stocks
Total
Non-controlling
interests
Total equity
The accompanying notes are an integral part of these consolidated financial statements.
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For the six-month period ended June 30, 2019 Balance at January 1, 2019 $ 7,632,738 $ 3,545,053 $ 3,558,894 $ 763,794 $ 2,217,619 ( $ 290,028 ) $ 42,494 ( $ 11,835 ) $ 17,458,729 $ 3,167,430 $ 20,626,159 Profit for the period - - - - 493,537 - - - 493,537 250,833 744,370 Other comprehensive income (loss) - - - - - ( 7,164 ) 29,882 - 22,718 13,919 36,637 Total comprehensive income (loss) - - - - 493,537 ( 7,164 ) 29,882 - 516,255 264,752 781,007 Appropriations of 2018 earnings 6(23) Legal reserve - - 182,754 - ( 182,754 ) - - - - - - Special reserve - - - ( 1,417 ) 1,417 - - - - - - Cash dividends - - - - ( 1,721,210 ) - - - ( 1,721,210 ) ( 529,621 ) ( 2,250,831 ) Employee stock options exercised 6(22) 362 1,316 - - - - - - 1,678 - 1,678 Share-based payment transactions 6(22) - 102,075 - - - - - - 102,075 3,506 105,581 Disposal of investments in equity instruments designated at fair value through other comprehensive income
- - - - ( 2,367 ) - 2,367 - - - - Balance at June 30, 2019 $ 7,633,100 $ 3,648,444 $ 3,741,648 $ 762,377 $ 806,242 ( $ 297,192 ) $ 74,743 ( $ 11,835 ) $ 16,357,527 $ 2,906,067 $ 19,263,594 For the six-month period ended June 30, 2020 Balance at January 1, 2020 $ 7,633,182 $ 3,730,448 $ 3,741,648 $ 762,377 $ 1,481,062 ( $ 383,344 ) ( $ 797,095 ) ( $ 11,835 ) $ 16,156,443 $ 3,190,554 $ 19,346,997 Profit for the period - - - - 310,472 - - - 310,472 251,055 561,527 Other comprehensive income (loss) - - - - ( 244 ) 62,186 ( 46,691 ) - 15,251 ( 26,716 ) ( 11,465 ) Total comprehensive income (loss) - - - - 310,228 62,186 ( 46,691 ) - 325,723 224,339 550,062 Appropriations of 2019 earnings 6(23) Legal reserve - - 116,599 - ( 116,599 ) - - - - - - Special reserve - - - 418,062 ( 418,062 ) - - - - - - Cash dividends - - ( 580,237 ) - ( 946,402 ) - - - ( 1,526,639 ) ( 515,285 ) ( 2,041,924 ) Employee stock options exercised 6(22) 144 455 - - - - - - 599 - 599 Employee stock options exercised by subsidiary
6(22) - 917 - - - - - - 917 - 917
Share-based payment transactions 6(22) - 88,219 - - - - - - 88,219 11,251 99,470 Reorganization 6(22) - 187,351 - - - 591 836 - 188,778 ( 188,778 ) - Non-controlling interests 6(22) - ( 13,788 ) - - - - - - ( 13,788 ) ( 16,216 ) ( 30,004 ) Balance at June 30, 2020 $ 7,633,326 $ 3,993,602 $ 3,278,010 $ 1,180,439 $ 310,227 ( $ 320,567 ) ( $ 842,950 ) ( $ 11,835 ) $ 15,220,252 $ 2,705,865 $ 17,926,117
CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
For the six-month periods ended June 30
Notes 2020 2019
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CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax $ 860,950 $ 983,491 Adjustments Adjustments to reconcile profit (loss) Loss (gain) on valuation of financial assets 6(27) 24,316 ( 56,214 ) Gain on reduction of capital of investments 6(27) - ( 5,158 ) (Gain) loss on disposal of property, plant and
equipment 6(27)
( 29,923 ) 1,353 Gain on lease modification 6(27) ( 370 ) - Share of (profit) loss of associates and joint ventures
accounted for using the equity method 6(7)
( 75,520 ) 208,525 Depreciation 6(29) 399,616 282,881 Amortization 6(29) 76,019 74,638 Expected credit loss 12(2) 21,963 255 Interest income 6(25) ( 71,893 ) ( 131,825 ) Dividend income 6(26) ( 94 ) ( 230 ) Interest expense 6(28) 153,225 124,575 Compensation costs for employee stock options 6(30) 99,470 141,783 Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss ( 3,341,837 ) 166,790 Contract assets - current ( 695,842 ) 5,982,512 Notes receivable 47,411 ( 34,915 ) Accounts receivable ( 731,676 ) 4,377,315 Accounts receivable - related parties ( 154,458 ) 447,298 Other receivables 112,111 108,907 Inventories ( 14,162 ) ( 113,081 ) Prepayments ( 871,844 ) ( 1,037,672 ) Other current assets ( 1,316,299 ) 208,887 Other non-current assets 251,098 84,690 Changes in operating liabilities Contract liabilities - current 2,546,975 276,228 Notes payable ( 41,321 ) 3,441 Accounts payable ( 1,839,266 ) ( 327,196 ) Accounts payable - related parties ( 163,486 ) ( 567,492 ) Other payables ( 922,546 ) ( 931,800 ) Other current liabilities ( 1,758,589 ) ( 4,488,308 ) Other non-current liabilities ( 258,686 ) ( 363,273 ) Cash (outflow) inflow generated from operations ( 7,694,658 ) 5,416,405 Interest received 79,346 130,758 Dividends received 36,354 63,685 Income tax refund 22,958 - Interest paid ( 125,635 ) ( 126,758 ) Income tax paid ( 290,817 ) ( 386,692 ) Net cash flows (used in) from operating activities ( 7,972,452 ) 5,097,398
(Continued)
CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
For the six-month periods ended June 30
Notes 2020 2019
The accompanying notes are an integral part of these consolidated financial statements.
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CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at fair value
through other comprehensive income - current
$ - $ 39,388
(Acquisition) disposal of financial assets at amortized cost ( 524,265 ) 297,428
Increase in other receivables - related parties ( 35,343 ) -
Increase in financial assets measured at cost - non-current ( 504,188 ) -
Proceeds from disposal of investments accounted for
using the equity method
- 224,494
Acquisition of property, plant and equipment 6(33) ( 833,053 ) ( 2,209,867 )
Proceeds from disposal of property, plant and equipment 67,548 2,569
Increase in prepayments for equipment ( 260,358 ) ( 380,744 )
Increase in intangible assets ( 17,374 ) ( 24,110 )
Increase in refundable deposits ( 165,757 ) ( 8,562 )
Increase in other non-current assets ( 38,678 ) ( 30,240 )
Net cash flows from acquisition of subsidiaries ( 30,019 ) ( 38,749 )
Net cash flows used in investing activities ( 2,341,487 ) ( 2,128,393 )
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings ( 795,982 ) ( 3,018,217 )
(Decrease) increase in short-term notes and bills payable ( 181,928 ) 250,913
Increase in long-term borrowings 112,381 2,067,483
Decrease in lease liabilities ( 92,057 ) ( 105,999 )
Increase (decrease) in deposits received (recognized in
other non-current liabilities)
49,600 ( 71,267 )
Issuance of bonds payable 2,993,839 -
Proceeds from employee stock options exercised 2,484 1,678
Cash dividends paid 6(33) ( 74,537 ) ( 137,017 )
Increase in non-controlling interests 37,515 -
Net cash flows from (used in) financing activities 2,051,315 ( 1,012,426 )
Net (decrease) increase in cash and cash equivalents ( 8,262,624 ) 1,956,579
Cash and cash equivalents at beginning of period 20,767,581 15,070,992
Cash and cash equivalents at end of period $ 12,504,957 $ 17,027,571
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CTCI CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2020 AND 2019
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)
(UNAUDITED)
1. HISTORY AND ORGANISATION
CTCI Corporation (the “Company”) was incorporated as a company limited by shares under the
provisions of the Company Law of the Republic of China on April 6, 1979 and commenced its operations
on May 1, 1979. The main business activities of the Company and its subsidiaries (collectively referred
herein as the “Group”) are the design, survey, construction and inspection of various engineering and
construction projects, plants, machinery and equipment and environmental protection projects. The
Company’s shares have been listed and traded on the Taiwan Stock Exchange since May 1993.
2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORIZATION
These consolidated financial statements were reported to the Board of Directors on August 5, 2020.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting
Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)
New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as
follows:
The above standards and interpretations have no significant impact to the Group’s financial condition
and financial performance based on the Group’s assessment.
New Standards, Interpretations and Amendments
Effective date by
International
Accounting
Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of
Material’
January 1, 2020
Amendments to IFRS 3, ‘Definition of a business’ January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark
reform’ January 1, 2020
Amendment to IFRS 16, ‘Covid-19-related rent concessions’ June 1, 2020
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(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by
the Group
None.
(3) IFRSs issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as
endorsed by the FSC are as follows:
The above standards and interpretations have no significant impact to the Group’s financial condition
and financial performance based on the Group’s assessment.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted are consistent with Note 4 in the consolidated financial
statements for the year ended December 31, 2019, except for the compliance statement, basis of
preparation, basis of consolidation and additional policies as set out below. These policies have been
consistently applied to all the periods presented, unless otherwise stated.
(1) Compliance statement
A. The consolidated financial statements of the Group have been prepared in accordance with the
“Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the
International Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated
financial statements for the year ended December 31, 2019.
New Standards, Interpretations and Amendments
Effective date by
International Accounting
Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from
applying IFRS 9’
January 1, 2021
Amendments to IFRS 3, ‘Reference to the conceptual framework’ 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
International Accounting
Standards Board
IFRS 17, ‘Insurance contracts’ January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’ January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or
non-current’
January 1, 2023
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
~12~
(2) Basis of preparation
A. Except for the following items, the consolidated financial statements have been prepared under
the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through
profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less
present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting
Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as
endorsed by the FSC (collectively referred herein as the “IFRSs”), requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process
of applying the Group’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
The basis for preparation of these consolidated financial statements is the same as that for the
preparation of the consolidated financial statements as of and for the year ended December 31,
2019.
B. Subsidiaries included in the consolidated financial statements:
June 30,
2020
December 31,
2019
June 30,
2019
CTCI Corp. CTCI Advanced
Systems Inc.
Design and
installation of
software
48.72 48.72 48.72 Note 1
CTCI Corp. CTCI
Development
Corp.
Real estate and
leasing business
100.00 100.00 100.00 Note 2
CTCI Corp. CTCI Investment
Corp.
Investments 100.00 100.00 100.00 Note 2
CTCI Corp.
CTCI Investment
Corp.
CTCI Smart
Engineering
Corp.
Planning and design
of construction
projects
97.09 97.09 97.09 Note 2
CTCI Corp. - 99.05 99.05
CTCI
Development
Corp.
0.01 0.01 0.01
CTCI Advanced
Systems Inc.
99.05 - -
Name of InvestorName of
Subsidiary
Main Business
ActivitiesDescription
Note 5
CTCI Resources
Engineering Inc.
Engineering
technology service
Ownership (%)
~13~
June 30,
2020
December 31,
2019
June 30,
2019
CTCI Corp. CTCI Americas,
Inc.
Business
development and
related engineering
services and planning
100.00 100.00 100.00 Note 2
CTCI Corp. CTCI Singapore
Pte. Ltd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Investment
Corp.
CTCI
Development
Corp.
ECOVE
Environment
Services Corp.
CTCI Smart
Engineering
Corp.
CTCI Resources
Engineering Inc.
CTCI Chemical
Corp.
Manufacturing of
chemical products
75.49 75.49 75.49 Note 2
CTCI Corp.
CTCI Investment
Corp.
CTCI
Development
Corp.
ECOVE
Environment
Corp.
Investments 57.72 57.72 57.72
ECOVE
Environment
Corp.
ECOVE Wujih
Energy Corp.
Environmental
engineering
100.00 100.00 100.00
ECOVE
Environment
Corp.
ECOVE Waste
Management
Corp.
Environmental
engineering
100.00 100.00 100.00
ECOVE
Environment
Corp.
ECOVE Waste
Management
Corp.
ECOVE
Environment
Services Corp.
Environmental
engineering
93.16 93.16 93.16
ECOVE
Environment
Corp.
ECOVE
Environment
Services Corp.
ECOVE Miaoli
Energy Corp.
Environmental
engineering
75.00 75.00 75.00
Ownership (%)Name of
Subsidiary
Main Business
ActivitiesName of Investor Description
~14~
June 30,
2020
December 31,
2019
June 30,
2019
ECOVE
Environment
Corp.
Yuan Ding
Resources
Management
Corp.
Environmental
engineering
100.00 100.00 100.00 Note 2
ECOVE
Environment
Services Corp.
ECOVE
Environment
Consulting Corp.
Environmental
engineering
100.00 100.00 100.00 Note 2
CTCI Corp.
ECOVE
Environment
Services Corp.
SINOGAL-
Waste Services
Co., Ltd.
Environmental
engineering
60.00 60.00 60.00 Note 2
CTCI Corp. CTCI Overseas
(BVI) Corp.
Investments 100.00 100.00 100.00 Note 2
CTCI Overseas
(BVI) Corp.
CTCI Overseas
Co., Ltd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Overseas
Co., Ltd.
CTCI Beijing
Co., Ltd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Overseas
Co., Ltd.
CIMAS
Engineering
Company
Planning and design
of construction
projects
100.00 83.00 83.00 Note 2, 3
CTCI Overseas
Co., Ltd.
Universal
Engineering
(BVI)
Corporation
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Overseas
Co., Ltd.
CIPEC
Construction
Company Inc.
Planning and design
of construction
projects
39.93 39.93 39.89 Note 1, 2
CTCI Overseas
Co., Ltd.
CINDA
Engineering &
Construction Pvt.
Ltd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Corp.
CTCI Overseas
Co., Ltd.
CTCI Arabia
Ltd.
Design and
construction of
chemical factories
100.00 100.00 100.00 Note 2
CTCI Beijing
Co., Ltd.
CTCI Shanghai
Co., Ltd.
Consulting services
for construction
projects
100.00 100.00 100.00 Note 2
CTCI Shanghai
Co., Ltd.
CTCI Trading
Shanghai
Co., Ltd.
General trade 100.00 100.00 100.00 Note 2
CTCI Corp.
CTCI Overseas
Co., Ltd.
CTCI
Engineering
& Construction
Sdn. Bhd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
Ownership (%)
Name of InvestorName of
Subsidiary
Main Business
ActivitiesDescription
~15~
June 30,
2020
December 31,
2019
June 30,
2019
CTCI Overseas
Co., Ltd.
Sumber Mampu
Sdn. Bhd.
Investments 10.00 10.00 10.00 Note 1, 2
Sumber Mampu
Sdn. Bhd.
CTCI
Engineering &
Construction
Sdn. Bhd.
CTCI Malaysia
Sdn. Bhd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Corp.
Superiority
(Thailand) Co.,
Ltd.
CTCI (Thailand)
Co., Ltd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Advanced
Systems Inc.
Century Ahead
Ltd.
Investments 100.00 100.00 100.00 Note 2
Century Ahead
Ltd.
CTCI Advanced
Systems
Shanghai Inc.
Computer skills
services
100.00 100.00 100.00 Note 2
Universal
Engineering
(BVI)
Corporation
Superiority
(Thailand) Co.,
Ltd.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Corp. CTCI Machinery
Corp.
Planning and design
of construction
projects
100.00 100.00 100.00 Note 2
CTCI Corp. CCJV P1
Engineering &
Construction
Sdn. Bhd.
Planning of
construction projects
99.00 99.00 99.00 Note 2
CTCI
Development
Corp.
Crown Asia-2
Investment
Limited
Investments 100.00 100.00 100.00 Note 2
CTCI Singapore
Pte. Ltd.
CTCI
Netherlands B.V.
Engineers and other
technical design and
consultancy
100.00 100.00 100.00 Note 2
CTCI Corp. CTCI-HDEC
(Chungli) Corp.
Waste water
treatment
sewerage system
51.00 51.00 51.00 Note 2
CTCI Corp. CTCI CMCE JV
Sdn. Bhd.
Planning and design
of construction
projects
51.00 51.00 51.00 Note 2
CTCI Corp. PT CTCI
International
Indonesia
Planning and design
of construction
projects
67.00 - - Note 2, 6
Ownership (%)
Name of InvestorName of
Subsidiary
Main Business
ActivitiesDescription
~16~
Note 1: Being the Company’s controlled entities, these subsidiaries that were under 50% owned
by the Company directly or indirectly were included in the consolidated financial
statements.
Note 2: The financial statements of the entity as of and for the six-month periods ended June 30,
2020 and 2019 were not reviewed by independent auditors as the entity did not meet the
definition of significant subsidiary.
Note 3: The equity interest of 33% and 17% was acquired by cash in March 2019 and February
2020, respectively.
Note 4: On October 18, 2019, the subsidiary, ECOVE Central Corp. Ltd., was dissolved after the
merger with the subsidiary, ECOVE Solar Energy Corp.
Note 5: CTCI Corp. sold its 99.05% equity interest in CTCI Resources Engineering Inc. to CTCI
Advanced Systems Inc. in line with the Group’s reorganization in January 2020.
Note 6: The Company jointly established PT CTCI International Indonesia with PT Eptco Dian
Persada and obtained 67% equity interest in January 2020.
Note 7: The financial statements of the entity as of and for the six-month periods ended June 30,
2019 were not reviewed by independent auditors as the entity did not meet the definition
of significant subsidiary.
June 30,
2020
December 31,
2019
June 30,
2019
ECOVE
Environment
Corp.
ECOVE
Environment
Services Corp.
ECOVE Solvent
Recycling Corp.
Environmental
engineering
90.00 90.00 90.00 Note 2
ECOVE
Environment
Corp.
ECOVE Solar
Energy Corp.
Electric Power
Supply
100.00 100.00 100.00
ECOVE Solar
Energy Corp.
ECOVE Solar
Power Corp.
Electric Power
Supply
100.00 100.00 100.00 Note 7
ECOVE Solar
Energy Corp.
ECOVE Central
Corp. Ltd.
Electric Power
Supply
- - 100.00 Note 4, 7
ECOVE Solar
Energy Corp.
ECOVE South
Corp. Ltd.
Electric Power
Supply
100.00 100.00 100.00 Note 2
ECOVE Solar
Energy Corp.
G.D
International,
LLC.
Electric Power
Supply
100.00 100.00 100.00 Note 2
G.D
International,
LLC.
Lumberton Solar
W2-090, LLC.
Electric Power
Supply
100.00 100.00 100.00 Note 7
Ownership (%)
Name of InvestorName of
Subsidiary
Main Business
ActivitiesDescription
~17~
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet date: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group:
As of June 30, 2020, December 31, 2019 and June 30, 2019, the non-controlling interest amounted
to $2,705,865, $3,190,554 and $2,906,067, respectively. The information on non-controlling
interest and respective subsidiaries is as follows:
Summarized financial information of the subsidiary:
Balance sheets
Statements of comprehensive income
Name of
subsidiary
Principal
place
of business Amount
Ownership
(%) Amount
Ownership
(%) Amount
Ownership
(%)
ECOVE
Environment
Corp.
Taiwan 2,351,286$ 42.28% 2,638,453$ 42.28% 2,376,305$ 42.28%
December 31, 2019 June 30, 2019June 30, 2020
Non-controlling interest
June 30, 2020 December 31, 2019 June 30, 2019
Current assets 3,882,995$ 3,555,853$ 3,959,024$
Non-current assets 5,926,768 5,984,964 5,937,924
Current liabilities 2,708,964)( 1,734,603)( 2,521,948)(
Non-current liabilities 2,030,797)( 2,213,411)( 2,337,498)(
Total net assets 5,070,002$ 5,592,803$ 5,037,502$
ECOVE Environment Corp.
2020 2019
Revenue 1,348,638$ 1,255,554$
Profit before income tax 306,825 303,277
Income tax expense 57,737)( 46,516)(
Profit for the period 249,088 256,761
Other comprehensive (loss) income, net of tax 16,647)( 3,453
Total comprehensive income for the period 232,441$ 260,214$
Comprehensive income attributable to
non-controlling interest 40,015$ 51,957$
Dividends paid to non-controlling interest 120,339$ 184,766$
ECOVE Environment Corp.
June 30,
For the three-month periods ended
~18~
Statements of cash flows
(4) Employee benefits
Pensions
Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate
derived from the actuarial valuation at the end of the prior financial year, adjusted for significant
market fluctuations since that time and for significant curtailments, settlements, or other significant
one-off events. Also, the related information is disclosed accordingly.
(5) Income tax
A. The interim period income tax expense is recognized based on the estimated average annual
effective income tax rate expected for the full financial year applied to the pretax income of the
interim period, and the related information is disclosed accordingly.
2020 2019
Revenue 2,648,694$ 2,539,391$
Profit before income tax 604,648 604,482
Income tax expense 113,898)( 103,284)(
Profit for the period 490,750 501,198
Other comprehensive (loss) income, net of tax 26,465)( 20,463
Total comprehensive income for the period 464,285$ 521,661$
Comprehensive income attributable to
non-controlling interest
Dividends paid to non-controlling interest 120,339$ 184,766$
78,565$ 100,292$
ECOVE Environment Corp.
For the six-month periods ended June 30,
2020 2019
Net cash (used in) provided by operating
activities
1,022,271)($ 544,025$
Net cash used in investing activities 164,490)( 271,186)(
Net cash (used in) provided by financing
activities 96,923)( 250,103
(Decrease) increase in cash and cash
equivalents for the period 1,283,684)( 522,942
Cash and cash equivalents, beginning of period 1,679,523 1,543,162
Cash and cash equivalents, end of period 395,839$ 2,066,104$
ECOVE Environment Corp.
For the six-month periods ended
June 30,
~19~
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group
recognizes the effect of the change immediately in the interim 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.
5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF
ASSUMPTION UNCERTAINTY
There have been no significant changes as of June 30, 2020. Please refer to Note 5 of the consolidated
financial statements for the year ended December 31, 2019.
6. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
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.
B. Details of the Group’s cash and cash equivalents pledged to others as collateral are provided in
Note 8.
(2) Financial assets and liabilities at fair value through profit or loss - Current
June 30, 2020 December 31, 2019 June 30, 2019
Cash on hand and
revolving funds $ 345,762 $ 92,656 $ 266,366
Checking accounts and
demand deposits 6,022,147 13,914,792 9,889,384
Time deposits 6,137,048 6,760,133 6,871,821
12,504,957$ 20,767,581$ 17,027,571$
Items June 30, 2020 December 31, 2019 June 30, 2019
Current items:
Financial assets
mandatorily measured
at fair value through
profit or loss
Beneficiary certificates 3,682,549$ 275,101$ 368,083$
Derivatives 12,832 - 12,781
3,695,381 275,101 380,864
Valuation adjustment 2,119 744 1,258
3,697,500$ 275,845$ 382,122$
Financial liabilities
mandatorily measured
at fair value through
profit or loss
Derivatives 33,784$ 54,716$ 4,487$
~20~
A. Amounts recognized in profit or loss in relation to financial assets at fair value through profit or
loss are listed below:
B. The Group entered into contracts relating to derivative financial assets and liabilities which were
not accounted for under hedge accounting. The information is listed below:
The Group entered into forward foreign exchange contracts to hedge exchange rate risk of import
or export proceeds. However, these forward foreign exchange contracts are not accounted for
under hedge accounting.
2020 2019
Financial assets mandatorily measured at
fair value through profit or loss
Beneficiary certificates 3,454$ 1,156$
Derivatives 26,342)( 24,907
22,888)($ 26,063$
2020 2019
Financial assets mandatorily measured at
fair value through profit or loss
Beneficiary certificates 3,508$ 3,807$
Derivatives 27,824)( 52,407
24,316)($ 56,214$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
Contract Period
Foreign exchange swap contract (1 item) THB 490,000 thousand 2020.03.20~2021.03.19
Foreign exchange swap contract (1 item) THB 73,150 thousand 2020.05.05~2021.05.07
Foreign exchange contract-buy (24 items) USD 98,090 thousand 2019.07.08~2021.02.25
Merchandise exchange contract (4 items) USD 3,787 thousand 2020.04.20~2020.09.04
Contract Period
Foreign exchange swap contract (8 items) USD 80,000 thousand 2019.12.12~2020.01.09
Foreign exchange contract-buy (11 items) USD 35,370 thousand 2019.05.02~2020.09.17
June 30, 2020
Contract Amount
(notional principal)
December 31, 2019
Contract Amount
(notional principal)
Contract Period
Foreign exchange swap contract (12 items) USD 91,000 thousand 2019.06.05-2019.07.10
Foreign exchange contract-buy (10 items) USD 34,370 thousand 2018.09.13-2020.06.11
Merchandise exchange contract (2 items) USD 1,203 thousand 2019.05.13-2019.08.22
June 30, 2019
Contract Amount
(notional principal)
~21~
C. Information relating to credit risk of financial assets at fair value through profit or loss is provided
in Note 12(2).
(3) Financial assets at fair value through other comprehensive income
A. The Group has elected to classify investments that are considered to be strategic investments or
steady dividend income as financial assets at fair value through other comprehensive income.
B. Amounts recognized in profit or loss and other comprehensive income in relation to the financial
assets at fair value through other comprehensive income are listed below:
Items June 30, 2020 December 31, 2019 June 30, 2019
Current items:
Debt instruments
Corporate bonds -$ -$ 27,461$
Valuation adjustment - - 170)(
- - 27,291
Equity instruments
Listed stocks 292,064 292,064 310,746
Valuation adjustment 139,696 172,879 191,313
431,760 464,943 502,059
431,760$ 464,943$ 529,350$
Non-current items:
Equity instruments
Unlisted shares 2,722,740$ 2,218,552$ 919,435$
Valuation adjustment 1,381,665)( 1,360,053)( 151,026)(
1,341,075$ 858,499$ 768,409$
2020 2019
Equity instruments at fair value through
other comprehensive income
Fair value change recognized in other
comprehensive income 35,128$ 11,123$
Cumulative loss reclassified to
retained earnings due to derecognition -$ 319)($
Debt instruments at fair value through
other comprehensive income
Fair value change recognized in other
comprehensive income -$ 35)($
Exchange loss recognized in
profit or loss -$ 112)($
Interest income recognized in profit or loss -$ 262$
For the three-month periods ended June 30,
~22~
C. As of December 31, 2019, Powtec ElectroChemical Corp. continued to incur significant losses,
and the current assets are insufficient to cover the current liabilities. In addition, the company was
approved by the Board of Directors in February, 2020 negotiations file for bankruptcy.
Accordingly, the Company has adjusted the book value of the financial asset to $0. And recognized
the loss in valuation under changes in fair value of other comprehensive income.
D. Information relating to credit risk of financial assets at fair value through other comprehensive
income is provided in Note 12(2).
(4) Financial assets at amortized cost
A. As at June 30, 2020, December 31, 2019 and June 30, 2019, 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 was
$932,149, $407,884 and $180,783, respectively.
B. Details of time deposits pledged to others as collateral are provided in Note 8.
2020 2019
Equity instruments at fair value through
other comprehensive income
Fair value change recognized in other
comprehensive income 54,795)($ 47,978$
Cumulative loss reclassified to
retained earnings due to derecognition -$ 2,367)($
Debt instruments at fair value through
other comprehensive income
Fair value change recognized in other
comprehensive income -$ 4$
Exchange gain recognized in
profit or loss -$ 508$
Interest income recognized in profit or loss -$ 529$
For the six-month periods ended June 30,
Items June 30, 2020 December 31, 2019 June 30, 2019
Current items: Time deposits with
maturity over three
months 768,789$ 277,164$ 72,903$
Non-current items:
Pledged time deposits 163,360$ 130,720$ 107,880$
~23~
(5) Notes and accounts receivable
A. The ageing analysis of notes receivable and accounts receivable is as follows:
The above analysis is calculated based on booking date.
B. As of June 30, 2020, December 31, 2019, June 30, 2019 and January 1, 2019, the balances of
receivables (including notes receivable) from contracts with customers amounted to $4,986,769,
$4,286,050, $4,566,176 and $8,914,287, respectively.
C. As of June 30, 2020, December 31, 2019 and June 30, 2019, 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 receivables (including notes receivable) held by the Group was
$4,943,010, $4,264,175 and $4,540,326, respectively.
D. Information relating to long-term receivables due in one year is provided in Note 6(11).
E. Information relating to credit risk is provided in Note 12(2) C(b).
(6) Prepayments
June 30, 2020 December 31, 2019 June 30, 2019
Notes receivable 15,949$ 63,360$ 109,923$
Accounts receivable 4,970,820 4,222,690 4,456,253
Long-term receivables
due in one year 296,035 312,489 284,357
Less: Allowance for bad
debts 43,759)( 21,875)( 25,850)(
5,239,045$ 4,576,664$ 4,824,683$
June 30, 2020 December 31, 2019 June 30, 2019
Up to 30 days 4,080,129$ 3,404,629$ 3,684,428$
31 to 90 days 144,285 94,072 273,531
91 to 180 days 178,665 346,698 203,121
Over 181 days 583,690 440,651 405,096
4,986,769$ 4,286,050$ 4,566,176$
June 30, 2020 December 31, 2019 June 30, 2019
Prepayment for materials 1,989,223$ 855,305$ 3,703,191$ Prepayment for
construction in progress 477,865 652,900 337,119
Others 1,163,426 1,250,465 1,251,257
3,630,514$ 2,758,670$ 5,291,567$
~24~
(7) Investments accounted for using the equity method
Associates
A. The basic information of the associate that is material to the Group is as follows:
2020 2019
At January 1 2,173,160$ 3,680,933$
Loss on disposal of investments accounted for
using the equity method - 219,336)(
Share of profit or loss of investments accounted
for using the equity method 75,520 208,525)(
Earnings distribution of investments accounted
for using the equity method 36,260)( 63,455)(
Changes in other equity items 32,218)( 14,149)(
At June 30 2,180,202$ 3,175,468$
Associates: June 30, 2020 December 31, 2019 June 30, 2019
Pan Asia Corp. 202,299$ 197,079$ 220,865$
Powtec ElectroChemical
Corp. (formerly
Powertec Energy Corp.) - - 1,038,147
Boretech Resource
Recovery Engineering
Co., Ltd. (Cayman) 485,186 462,705 441,243
MIE Industrial Sdn.
Bhd. 567,075 599,178 575,565
Blue Whale Water
Technology Co., Ltd. 408,061 411,670 399,109
EVER ECOVE Corp. 288,668 291,685 294,998
HDEC-CTCI (Linhai)
Corporation 228,913 210,843 205,541
2,180,202$ 2,173,160$ 3,175,468$
Shareholding ratio
Company name
Principal
place
of business June 30, 2019
Nature of
relationship
Method of
measurement
Powtec ElectroChemical
Corp.
Taiwan 16.03% Associate Equity method
~25~
B. The summarized financial information of the associate that is material to the Group is as follows:
Balance sheet
Statement of comprehensive income
C. The carrying amount of the Group’s interests in all individually immaterial associates and the
Group’s share of the operating results are summarized below:
As of June 30, 2020, December 31, 2019 and June 30, 2019, the carrying amount of the Group’s
individually immaterial associates amounted to $2,180,202, $2,173,160 and $2,137,321,
respectively.
Powtec ElectroChemical Corp.
June 30, 2019
Current assets 679,234$
Non-current assets 22,284,913
Current liabilities 689,243)(
Non-current liabilities 12,162,435)(
Total net assets 10,112,469$
Share in associate’s net assets 1,621,029$
Carrying amount of the associate 1,038,147$
Powtec ElectroChemical Corp.
For the three-month period ended
June 30, 2019
Revenue -$
Total comprehensive loss 608,202)($
Powtec ElectroChemical Corp.
For the six-month period ended
June 30, 2019
Revenue $ -
Total comprehensive loss 1,178,861)($
2020 2019
Total comprehensive income 203,860$ 320,035$
2020 2019
Total comprehensive income 222,167$ 119,582$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~26~
D. In May 2019, the Board of Directors during its meeting resolved to dispose 19,580,000 shares of
Pan Asia Corp. totaling $224,494, of which $5,158 was recognized as gain on disposal of
investments (shown as other gains and losses).
E. The Group, a director, resigned from Powtec ElectroChemical Corp. in September 2019 for
business consideration. As the Group lost its significant influence over this company, the Group
reclassified the equity investment in Powtec ElectroChemical Corp. as “financial assets at fair
value through other comprehensive income - non-current” and recognized the result of
remeasurement of its investment retained at fair value in gain on disposal, shown as other gains
and losses, amounting to $510,967.
F. The financial statements of above investments accounted for using the equity method as of and
for the six-month periods ended June 30, 2020 and 2019 were not reviewed by independent
accountants.
G. The investments accounted for using the equity method, Pan Asia Corp., Blue Whale Water
Technology Co. Ltd., EVER ECOVE Corp., and HDEC-CTCI (Linhai) Corporation, were
recognized based on the financial statements which were audited by other auditors as of December
31, 2019.
~27~
(8) Property, plant and equipment
Land
Buildings and
structures Machinery
Transportation
equipment
Office
equipment
Unfinished
construction
and
prepayments
for equipment Others Total
At January 1, 2020
Cost 5,494,521$ 4,502,955$ 3,863,852$ 302,719$ 248,188$ 769,306$ 871,920$ 16,053,461$
Accumulated depreciation - 1,917,972)( 1,174,844)( 234,157)( 230,385)( - 707,631)( 4,264,989)(
5,494,521$ 2,584,983$ 2,689,008$ 68,562$ 17,803$ 769,306$ 164,289$ 11,788,472$
For the six-month period
ended June 30, 2020
Opening net book amount 5,494,521$ 2,584,983$ 2,689,008$ 68,562$ 17,803$ 769,306$ 164,289$ 11,788,472$
Additions - 696 43,857 1,536 3,371 779,817 3,776 833,053
Disposals - - 25)( 61)( - - 50)( 136)(
Depreciation charge - 62,115)( 182,008)( 14,949)( 2,650)( - 44,319)( 306,041)(
Reclassifications - 33,306 556,521 - - 179,891)( 9,801 419,737
Net exchange differences 4,973)( 37,202)( 10,740)( 1,658)( 648)( - 1,183)( 56,404)(
Closing net book amount 5,489,548$ 2,519,668$ 3,096,613$ 53,430$ 17,876$ 1,369,232$ 132,314$ 12,678,681$
At June 30, 2020
Cost 5,489,548$ 4,484,755$ 4,333,465$ 296,536$ 222,455$ 1,369,232$ 867,532$ 17,063,523$
Accumulated depreciation - 1,965,087)( 1,236,852)( 243,106)( 204,579)( - 735,218)( 4,384,842)(
5,489,548$ 2,519,668$ 3,096,613$ 53,430$ 17,876$ 1,369,232$ 132,314$ 12,678,681$
~28~
Land
Buildings and
structures Machinery
Transportation
equipment
Office
equipment
Unfinished
construction
and
prepayments
for equipment Others Total
At January 1, 2019
Cost 5,519,050$ 4,254,061$ 2,853,926$ 262,446$ 239,739$ 290,187$ 771,729$ 14,191,138$
Accumulated depreciation - 1,777,331)( 936,086)( 206,580)( 230,037)( - 609,068)( 3,759,102)(
5,519,050$ 2,476,730$ 1,917,840$ 55,866$ 9,702$ 290,187$ 162,661$ 10,432,036$
For the six-month period
ended June 30, 2019
Opening net book amount 5,519,050$ 2,476,730$ 1,917,840$ 55,866$ 9,702$ 290,187$ 162,661$ 10,432,036$
Additions 20 114,559 35,633 3,474 1,093 260,940 8,188 423,907
Disposals - - 3,281)( - 72)( - 569)( 3,922)(
Depreciation charge - 64,055)( 97,865)( 9,403)( 2,284)( - 47,651)( 221,258)(
Reclassifications - - 161,464 - - 116,731)( - 44,733
Net exchange differences 4,958 15,025 7,464 279 89 601 2,167 30,583
Closing net book amount 5,524,028$ 2,542,259$ 2,021,255$ 50,216$ 8,528$ 434,997$ 124,796$ 10,706,079$
At June 30, 2019
Cost 5,524,028$ 4,368,620$ 3,042,742$ 265,920$ 240,760$ 434,997$ 779,348$ 14,656,415$
Accumulated depreciation - 1,826,361)( 1,021,487)( 215,704)( 232,232)( - 654,552)( 3,950,336)(
5,524,028$ 2,542,259$ 2,021,255$ 50,216$ 8,528$ 434,997$ 124,796$ 10,706,079$
~29~
A. Amount of borrowing costs capitalized as part of property, plant and equipment and the range of the interest rates for such capitaliztion are as follows:
B. Please refer to Note 8 for the details of pledged property, plant and equipment.
2020 2019
Amount capitalized 2,464$ 1,625$
Range of the interest rates for capitalization 1.10%~2.04% 1.09%~1.40%
For the six-month periods ended
June 30,
~30~
(9) Leasing arrangements - lessee
A. The Group leases various assets including land, buildings, business vehicles, multifunction
printers, etc. Rental contracts are typically made for periods of 1 to 28 years. Lease terms are
negotiated on an individual basis and contain a wide range of different terms and conditions. The
lease agreements do not impose covenants, but leased assets may not be used as security for
borrowing purposes.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:
C. For the three-month and six-month periods ended June 30, 2020 and 2019, the additions to right-
of-use assets were $52,461, $47,788, $70,856 and $48,899, respectively.
June 30, 2020 December 31, 2019 June 30, 2019
Carrying amount Carrying amount Carrying amount
Land $ 247,592 $ 258,991 $ 197,206
Buildings 54,903 73,633 80,350
Transportation
equipment (Business
vehicles) 43,868 48,233 54,221
Office equipment
(Photocopiers) 22,875 29,338 35,398
Other equipment 40,562 33,659 38,780
409,800$ 443,854$ 405,955$
2020 2019
Depreciation charge Depreciation charge
Land $ 23,492 $ 9,290
Buildings 10,433 12,294
Transportation equipment (Business vehicles) 7,408 8,087
Office equipment (Photocopiers) 4,260 3,425
Other equipment 434 2,204
46,027$ 35,300$
2020 2019
Depreciation charge Depreciation charge
Land $ 45,083 $ 16,999
Buildings 21,870 17,958
Transportation equipment (Business vehicles) 14,947 13,807
Office equipment (Photocopiers) 8,500 7,008
Other equipment 1,126 3,698
91,526$ 59,470$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~31~
D. The information on income and expense accounts relating to lease contracts is as follows:
E. For the three-month and six-month periods ended June 30, 2020 and 2019, the Group’s total cash
outflow for leases were $104,116, $86,446, $222,216 and $266,441, respectively.
F. Variable lease payments:
(a) The Group's lease contract contains a variable lease payment term that is linked to the amount
of electricity generated by solar energy. Changes in variable lease payments are recognized as
expense in the period specified in the contract.
(b) A 1% increase in the electricity generated from solar energy would increase total lease
payments by approximately 1% in accordance with the relevant variable lease contract.
(10) Investment property
2020 2019
Items affecting profit or loss
Interest expense on lease liabilities $ 766 $ 568
Gain on lease modification 370 -
Expense on short-term lease contracts 41,898 75,662
Expense on leases of low-value assets 181 517
Expense on variable lease payments 14,750 4,366
2020 2019
Items affecting profit or loss
Interest expense on lease liabilities $ 1,440 $ 1,186
Gain on lease modification 370 -
Expense on short-term lease contracts 105,500 149,657
Expense on leases of low-value assets 308 517
Expense on variable lease payments 24,351 10,268
For the three-month periods ended June 30,
For the six-month periods ended June 30,
Buildings and
Land structures Total
At January 1, 2020
Cost 718,428$ 126,572$ 845,000$
Accumulated depreciation - 41,177)( 41,177)(
718,428$ 85,395$ 803,823$
For the six-month period
ended June 30, 2020
Opening net book amount 718,428$ 85,395$ 803,823$
Depreciation charge - 2,049)( 2,049)(
Closing net book amount 718,428$ 83,346$ 801,774$
At June 30, 2020
Cost 718,428$ 126,572$ 845,000$
Accumulated depreciation - 43,226)( 43,226)(
718,428$ 83,346$ 801,774$
~32~
A. Rental income from the lease of the investment property and direct operating expenses arising
from the investment property are shown below:
Buildings and
Land structures Total
At January 1, 2019
Cost 718,428$ 126,572$ 845,000$
Accumulated depreciation - 36,871)( 36,871)(
718,428$ 89,701$ 808,129$
For the six-month period
ended June 30, 2019
Opening net book amount 718,428$ 89,701$ 808,129$
Depreciation charge - 2,153)( 2,153)(
Closing net book amount 718,428$ 87,548$ 805,976$
At June 30, 2019
Cost 718,428$ 126,572$ 845,000$
Accumulated depreciation - 39,024)( 39,024)(
718,428$ 87,548$ 805,976$
2020 2019
Rental income from investment property 7,804$ 7,838$
Direct operating expenses arising from the
investment property that generated rental
income during the period 1,024$ 1,076$
Direct operating expenses arising from the
investment property that did not generate
rental income during the period -$ -$
2020 2019
Rental income from investment property 15,607$ 15,641$
Direct operating expenses arising from the
investment property that generated rental
income during the period 2,049$ 2,153$
Direct operating expenses arising from the
investment property that did not generate
rental income during the period -$ -$
For the three-month periods ended
June 30,
For the six-month periods ended
June 30,
~33~
B. The fair value of the investment property held by the Group as at June 30, 2020 and 2019 were
$900,940 and $906,867, respectively, which was valued based on the trading prices of nearby
assets recorded in the Actual Selling Price Property Value Reporting, Ministry of Interior. The
fair value of the investment property held by the Group as at December 31, 2019 was $940,000,
which was valued by independent valuers. Valuations were made using the income approach
with key assumptions as follows:
C. Information about the investment property that was pledged to others as collateral is provided in
Note 8.
(11) Other non-current assets
A. Long-term receivables:
The Group contracted with the government (grantor) a service concession arrangement. The
consideration receivable from the grantor in respect of the service concession arrangement is
recognized at its fair value. Such consideration is recognized as a financial asset based on the
way of the consideration from the grantor to the operator being made as specified in the
arrangement. The consideration receivable from the grantor is recognized as accounts receivable
if it is expected to be realized within 12 months after the balance sheet date (please refer to Note
6(5)), and is recognized as long-term receivables if it is expected to be realized more than 12
months after the balance sheet date. The major terms of the arrangement are as follows:
(a) The second-tier subsidiary, ECOVE Wujih Energy Corp., obtained the operation for the
construction of Wujih Refuse Incineration Plant by build - operate - transfer (BOT) mode
since April, 2000. In September, 2000, the “Taichung City waste incineration, commission
contract” between ECOVE Wujih Energy Corp., and Taichung Government had been signed.
The operating period is for 20 years starting from September 6, 2004. However, according to
December 31, 2019
Gross margin 2.54%
Growth rate 1.00%~1.50%
Discount rate 3.40%
June 30, 2020 December 31, 2019 June 30, 2019
Long-term receivables 2,324,139$ 2,503,219$ 2,603,802$ Less: Long-term
receivables due in one
year 296,035)( 312,489)( 284,357)(
2,028,104 2,190,730 2,319,445
Restricted bank deposits 48,872 53,563 64,133
Refundable deposits 312,396 146,639 138,729
Prepayments for business
facilities 208,538 367,916 882,355
Air pollution fee - - 54,267
Costs to fulfill a contract 88,311 120,909 -
Others 195,738 265,283 241,169
2,881,959$ 3,145,040$ 3,700,098$
~34~
the contract, if it is expired in advance or extended during construction or operation, duration
of the operation will be deemed to be matured or extended, but not to exceed 50 years. In
order to work the “Waste Incineration Taichung City Commission Contract”, ECOVE Wujih
Energy Corp., obtained the land-use right that has continued for 20 years since the plant began
operation.
(b) The second-tier subsidiary, ECOVE Miaoli Energy Corp., obtained the operation for the
construction of Miaoli County Refuse Incineration Plant by build - operate - transfer (BOT)
mode since August, 2002. In September, 2002, the “Waste Incineration Commission Contract”
between ECOVE Miaoli Energy Corp., and Miaoli County Government had been signed. The
operating period is for 20 years starting from February 29, 2008. However, according to the
contract, if it is expired in advance or extended during construction or operation, duration of
the operation will be deemed to be matured or extended. In order to work the “Waste
Incineration Miaoli County Commission Contract”, ECOVE Miaoli Energy Corp., obtained
the land-use right of Miaoli Refuse Incineration Plant. Therefore, duration of the land-use
right is from September 13, 2002 to March 12, 2026.
(c) ECOVE Wujih Energy Corp. and ECOVE Miaoli Energy Corp. need to comply with the
guarantee tonnage of waste from government according to the contract during construction
or operation.
(d) Per service cost is calculated and adjusted based on the “Waste Incineration Commission
Contract”, “Index of average regular earnings of employees-manufacturing” and “Consumer
price index”.
B. Information about the restricted bank deposits and refundable deposits that were pledged to
others as collateral is provided in Note 8.
C. The costs to fulfill a contract refer to the initial reconstruction cost of the Refuse Incineration
Plant for the contract that the subsidiary - ECOVE Environmental Services Corp. entered into
with the owner to operate the plant on its behalf, and it is amortized over the term of the contract.
(12) Short-term borrowings
Type of borrowing June 30, 2020 Interest rate range Collateral
Unsecured borrowings 4,943,624$ 0.88%~8.83% -
Secured borrowings 423,700 1%~1.23% Note 2
5,367,324$
Type of borrowing December 31, 2019 Interest rate range Collateral
Unsecured borrowings 5,858,306$ 0.70%~7.95% -
Secured borrowings 305,000 0.95%~1.70% Notes 1 and 2
6,163,306$
~35~
Note 1: ECOVE Solvent Recycling Corporation has committed that upon completion of the
construction, ECOVE Solvent Recycling Corporation will complete the registration of
ownership on the construction and pledge with the basement of construction in first priority
to Chang Hwa Bank.
Note 2: The borrowing facilities were 100% jointly guaranteed by the subsidiary - ECOVE
Environment Corp.
Note 3: Properties pledged by the subsidiary-CTCI Development Corp. were guaranteed and
endorsed by the Company.
(13) Accounts payable
(14) Other payables
Type of borrowing June 30, 2019 Interest rate range Collateral
Unsecured borrowings 8,357,092$ 0.68%~8.25% -
Secured borrowings 2,039,150 1.24%~1.7% Notes 1 and 3
10,396,242$
June 30, 2020 December 31, 2019 June 30, 2019
Materials payable 4,750,436$ 6,250,524$ 4,592,619$ Sub-contract costs
payable 4,655,824 4,996,203 4,664,584 Maintenance costs
payable 303,712 310,079 253,918 Incinerator equipment
usage fee payable 57,371 41,517 60,660
Others 101,681 109,967 92,285
9,869,024$ 11,708,290$ 9,664,066$
June 30, 2020 December 31, 2019 June 30, 2019
Accrued payroll 885,648$ 1,464,481$ 947,440$ Accrued employees’
compensation, directors’
and supervisors’
remuneration 123,913 123,434 153,812
Accrued insurance 73,419 71,953 70,226
Accrued pension 31,488 42,010 40,375
Dividends payable 1,937,086 - 2,113,814
Accrued consultant fee 246,386 250,456 -
Others 589,680 895,687 762,903
3,887,620$ 2,848,021$ 4,088,570$
~36~
(15) Other current assets/liabilities
Joint venture represents an accumulated cost over (under) the accumulated capital injection and bills.
(16) Bonds payable
The terms of the domestic unsecured bonds issued by the Company are as follows:
In 2019 and 2020, the Company issued $6,000,000 and $3,000,000, annual fixed interest rate of
0.9% and 0.77%, domestic unsecured bonds, as approved by the regulatory authority, respectively.
The bonds mature 5 years from the issue date (December 25, 2019 ~ December 25, 2024 and June
22, 2020 ~ June 22, 2025) and will be redeemed at the maturity date. The bonds were approved to
be issued on the Taipei Exchange on December 16, 2019 and June 11, 2020, respectively.
(17) Long-term borrowings
A. Information about the assets that were pledged for bank borrowings as collateral is provided in
Note 8.
B. The promissory note made by the subsidiary - ECOVE Environment Corp. as of June 30, 2020,
December 31, 2019 and June 30, 2019 were $2,016,401, $1,664,080 and $1,711,027, respectively.
June 30, 2020 December 31, 2019 June 30, 2019
Other current assets
Joint venture 1,323,116$ -$ -$
Others - 6,817 -
1,323,116$ 6,817$ -$
Other current liabilities
Joint venture -$ 1,734,466$ 2,938,901$ Long-term borrowings -
current portion 255,256 134,149 195,764
Receipts in advance 17,804 46,992 23,132
Others 81,399 76,334 72,051
354,459$ 1,991,941$ 3,229,848$
June 30, 2020 December 31, 2019
Bonds payable 9,000,000$ 6,000,000$
Less: Discount on bonds payable 15,540)( 10,471)(
8,984,460$ 5,989,529$
Type of borrowings June 30, 2020 December 31, 2019 June 30, 2019
Secured borrowings 5,637,203$ 5,524,822$ 3,619,337$
Less: Current portion 255,256)( 134,149)( 195,764)(
5,381,947$ 5,390,673$ 3,423,573$
Financing amount 7,886,401$ 7,733,525$ 5,789,786$
Interest rate range 1.09%~3.11963% 1.25%~4.38513% 1.36378%~5.029%
~37~
(18) Other non-current liabilities
Deferred revenue is a cash grant received from the New Jersey government in the United States in
2017 since Lumberton builds and operates a solar power station in New Jersey. The construction
period of the solar power station is 15 years.
(19) Pensions
A. Defined benefit pension plan
(a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance
with the Labor Standards Law, covering all regular employees’ service years prior to the
enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of
employees who chose to continue to be subject to the pension mechanism under the Law.
Under the defined benefit pension plan, two units are accrued for each year of service for the
first 15 years and one unit for each additional year thereafter, subject to a maximum of 45
units. Pension benefits are based on the number of units accrued and the average monthly
salaries and wages of the last 6 months prior to retirement. The Company contributes monthly
an amount equal to 6.5% of the employees’ monthly salaries and wages to the retirement fund
deposited with Bank of Taiwan, the trustee, under the name of the independent retirement
fund committee. Also, the Company would assess the balance in the aforementioned labor
pension reserve account by the end of December 31, every year. If the account balance is
insufficient to pay the pension calculated by the aforementioned method to the employees
expected to qualify for retirement in the following year, the Company will make contributions
to cover the deficit by next March.
(b) For the aforementioned pension plan, the Group recognized pension costs of $7,788, $10,816,
$15,618 and $21,655 for the three-month and six-month periods ended June 30, 2020 and
2019, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending
December 31, 2021 amount to $86,581.
B. Defined contribution pension plan
(a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined
contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”),
covering all regular employees with R.O.C. nationality. Under the New Plan, the Company
and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’
June 30, 2020 December 31, 2019 June 30, 2019
Net defined benefit
liabilities
1,160,707$ 1,409,863$ 1,511,544$
Deposits received 375,607 326,007 336,382
Accrued recovery costs 110,693 109,623 97,708
Deferred revenue 147,937 157,648 164,873
Others 81,010 81,899 70,645
1,875,954$ 2,085,040$ 2,181,152$
~38~
monthly salaries and wages to the employees’ individual pension accounts at the Bureau of
Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of
employment.
(b) The pension costs under the defined contribution pension plans of the Group for the three-
month and six-month periods ended June 30, 2020 and 2019 were $49,669, $51,380,
$101,005 and $103,228, respectively.
(c) Some overseas subsidiaries adopted a defined contribution pension plan, covering all regular
employees. Appropriation of pension cost for the three-month and six-month periods ended
June 30, 2020 and 2019 were $20,038, $25,549, $40,628 and $57,503, respectively.
(20) Share-based payment - employee compensation
A. The Company
(a) For the six-month periods ended June 30, 2020 and 2019, the Company’s share-based
payment arrangements were as follows:
(b) The above employee stock options are set forth below:
i. Details of the fifth plan of employee stock options outstanding are set forth below:
Type of arrangement Grant date
Quantity
granted
Contract
period
Vesting
conditions
Fifth plan of employee
stock options
2017.04.11 20,000 units 6 years Service of 2 to
4 years
Sixth plan of employee
stock options
2018.03.09 20,000 units 6 years Service of 2 to
4 years
Seventh plan of
employee stock options
2019.03.08 20,000 units 6 years Service of 2 to
4 years
Eighth plan of employee
stock options
2020.01.08 20,000 units 6 years Service of 2 to
4 years
No. of units
Weighted-
average No. of units
Weighted-
average
(shares in exercise price (shares in exercise price
Stock options thousands) (in dollars) thousands) (in dollars)
Options outstanding
at beginning of period 17,264.94 NT$44.10 18,328.55 NT$49.60
Options waived 1,849.27)( - 388.11)( -
Options exercised 3.67)( NT$44.10 36.15)( NT$49.60
Options outstanding
at end of period 15,412.00 NT$44.10 17,904.29 NT$49.60
Options exercisable
at end of period 9,770.17 NT$44.10 7,485.45 NT$49.60
For the six-month periods ended June 30,
2020 2019
~39~
ii. Details of the sixth plan of employee stock options outstanding are set forth below:
iii. Details of the seventh plan of employee stock options outstanding are set forth below:
No. of units
Weighted-
average No. of units
Weighted-
average
(shares in exercise price (shares in exercise price
Stock options thousands) (in dollars) thousands) (in dollars)
Options outstanding
at beginning of period 18,167.07 NT$40.80 19,294.54 NT$45.90
Options waived 671.63)( - 469.32)( -
Options exercised 10.64)( NT$40.80 - -
Options outstanding
at end of period 17,484.80 NT$40.80 18,825.22 NT$45.90
Options exercisable
at end of period 7,216.14 NT$40.80 - -
For the six-month periods ended June 30,
2020 2019
No. of units
Weighted-
average No. of units
Weighted-
average
(shares in exercise price (shares in exercise price
Stock options thousands) (in dollars) thousands) (in dollars)
Options outstanding
at beginning of period 18,886.10 NT$46.50 - -
Options granted - - 20,000.00 NT$48.90
Options waived 751.50)( - 357.44)( -
Options outstanding
at end of period 18,134.60 NT$46.50 19,642.56 NT$48.90
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2020 2019
~40~
iv. Details of the eighth plan of employee stock options outstanding are set forth below:
(c) The weighted-average stock price of stock options at exercise dates for the six-month periods
ended June 30, 2020 and 2019 were NT$34.61 and NT$46.40, respectively.
(d) As of June 30, 2020, December 31, 2019 and June 30, 2019, the range of exercise prices of
stock options outstanding were NT$36.9~NT$52.2, NT$40.80~NT$46.50 and
NT$45.90~NT$49.60, respectively, and the weighted-average remaining contractual period
were as follows:
No. of units
Weighted-
average
(shares in exercise price
Stock options thousands) (in dollars)
Options outstanding at beginning of period - -
Options granted 20,000.00 NT$36.90
Options waived 840.13)( -
Options outstanding at end of period 19,159.87 NT$36.90
Options exercisable at end of period - -
For the six-month period
ended June 30, 2020
Type of arrangement June 30, 2020 December 31, 2019 June 30, 2019
Fifth plan of employee
stock options
3 years 3.5 years 4 years
Sixth plan of employee
stock options
4 years 4.5 years 5 years
Seventh plan of
employee stock
options
5 years 5.5 years 6 years
Eighth plan of
employee stock
options
5.5 years - -
~41~
(e) The fair value of stock options is measured using the Black-Scholes option-pricing model.
Relevant information is as follows:
(f) For the three-month and six-month periods ended June 30, 2020 and 2019, expenses
recognized arising from share-based payment amounted to $33,274, $41,507, $79,026 and
$73,170, respectively.
B. Subsidiary – CTCI Advanced System Inc.
(a) For the six-month periods ended June 30, 2020 and 2019, the subsidiary’s share-based
payment transactions are set forth below:
Type of
arrangement
Grant
date
Stock
price
(in dollars)
Exercise
price
(in dollars)
Expected
price
volatility
Expected
option life
Expected
dividends
Risk free
interest
rate
Fair value
per unit
(in dollars)
Fifth plan of
employee stock
options
2017.4.11 NT$ 52.2 NT$ 52.2 28.06%~
29.05%
4~5
years
0% 0.80%~
0.89%
NT$12.19~
NT$14.17
Sixth plan of
employee stock
options
2018.3.9 NT$ 45.9 NT$ 45.9 24.96%~
26.37%
4~5
years
0% 0.63%~
0.72%
NT$ 9.56~
NT$11.29
Seventh plan of
employee stock
options
2019.3.8 NT$ 48.9 NT$ 48.9 22.88%~
23.56%
4~5
years
0% 0.64%~
0.67%
NT$ 9.38~
NT$10.82
Eighth plan of
employee stock
options
2020.1.8 NT$ 36.9 NT$ 36.9 19.14%~
21.50%
4~5
years
0% 0.55%~
0.57%
NT$5.95~
NT$7.44
Type of arrangement Grant date
Quantity
granted
Contract
period
Vesting
conditions
Sixth plan of employee
stock options
2018.03.23 600 units 6 years Service of
2 to 4 years
Seventh plan of employee
stock options
2019.03.08 600 units 6 years Service of
2 to 4 years
Eighth plan of employee
stock options
2020.01.08 600 units 6 years Service of
2 to 4 years
~42~
(b) The above employee stock options are set forth below:
i. Details of the sixth plan of employee stock options outstanding are set forth below
ii. Details of the seventh plan of employee stock options outstanding are set forth below:
No. of units
Weighted-
average No. of units
Weighted-
average
(shares in exercise price (shares in exercise price
Stock options thousands) (in dollars) thousands) (in dollars)
Options outstanding
at beginning of period 557.00 NT$41.20 583.00 NT$44.00
Options waived 14.00)( - 15.00)( -
Options exercised 45.75)( NT$41.20 - -
Options outstanding
at end of period 497.25 NT$41.20 568.00 NT$44.00
Options exercisable
at end of period 158.50 NT$41.20 - -
For the six-month periods ended June 30,
2020 2019
No. of units
Weighted-
average No. of units
Weighted-
average
(shares in exercise price (shares in exercise price
Stock options thousands) (in dollars) thousands) (in dollars)
Options outstanding
at beginning of period 581.00 NT$39.60 - -
Options granted - - 600.00 NT$42.20
Options waived 23.00)( - 12.00)( -
Options outstanding
at end of period 558.00 NT$39.60 588.00 NT$42.20
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2020 2019
~43~
iii. Details of the eighth plan of employee stock options outstanding are set forth below:
(c) For the six-month period ended June 30, 2020, the weighted-average exercise price at the
exercise date for those exercised stock options amounted to NT$41.2. For the six-month
period ended June 30, 2019, no stock options had been exercised.
(d) As of June 30, 2020, December 31, 2019 and June 30, 2019, the exercise price of stock
options outstanding were NT$39.60~NT$49.40, NT$39.60~NT$41.20 and NT$42.20~
NT$44.00, respectively. The weighted-average remaining contractual period were as follows:
(e) The fair value of stock options is measured using the Black-Scholes option-pricing model.
Relevant information is as follows:
No. of units
Weighted-
average
(shares in exercise price
Stock options thousands) (in dollars)
Options outstanding at beginning of period - -
Options granted 600.00 NT$49.40
Options waived 21.00)( -
Options outstanding at end of period 579.00 NT$49.40
Options exercisable at end of period - -
For the six-month period
ended June 30, 2020
Type of arrangement June 30, 2020 December 31, 2019 June 30, 2019
Sixth plan of
employee stock
options
3.75 years 4.25 years 4.75 years
Seventh plan of
employee stock
options
4.75 years 5.25 years 5.75 years
Eighth plan of
employee stock
options
5.5 years - -
Type of
arrangement
Grant
date
Stock
price
(in dollars)
Exercise
price
(in dollars)
Expected
price
volatility
Expected
option life
Expected
dividends
Risk free
interest
rate
Fair value
per unit
(in dollars)
Sixth plan of
employee stock
options
2018.03.23 NT$46.85 NT$46.85 21.33%~
22.13%
4~5
years
0% 0.65%~
0.72%
NT$27.51
Seventh plan of
employee stock
options
2019.03.08 NT$42.20 NT$42.20 19.42%~
20.74%
4~5
years
0% 0.64%~
0.67%
NT$22.82
Eighth plan of
employee stock
options
2020.01.08 NT$49.40 NT$49.40 18.19%~
19.43%
4~5
years
0% 0.55%~
0.57%
NT$25.15
~44~
(f) For the three-month and six-month periods ended June 30, 2020 and 2019, the expenses
incurred on share-based payment transactions were $2,966, $982, $7,966 and $1,444,
respectively.
C. Subsidiary – ECOVE Environment Corp.
(a) For the six-month periods ended June 30, 2020 and 2019, the subsidiary’s share-based
payment transactions are set forth below:
(b) The above employee stock options are set forth below:
i. Details of the sixth plan of employee stock options outstanding are set forth below:
Type of
arrangement Grant date
Quantity
granted Contract period
Vesting
conditions
Sixth plan of employee
stock options
2018.7.09 1,500 units 6 years Service of
2 years
Seventh plan of employee
stock options
2019.7.24 1,500 units 6 years Service of
2 years
Eighth plan of employee
stock options
2020.4.13 1,500 units 6 years Service of
2 years
No. of units
Weighted-
average No. of units
Weighted-
average
(shares in exercise price (shares in exercise price
Stock options thousands) (in dollars) thousands) (in dollars)
Options outstanding
at beginning of period 1,408.11 NT$155.00 1,448.27 NT$173.50
Options waived 24.64)( - 24.05)( -
Options outstanding
at end of period 1,383.47 NT$155.00 1,424.22 NT$163.90
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2020 2019
~45~
ii. Details of the seventh plan of employee stock options outstanding are set forth below:
iii. Details of the eighth plan of employee stock options outstanding are set forth below:
(c) For the six-month periods ended June 30, 2020 and 2019, no stock options had been executed.
(d) As of June 30, 2020, December 31, 2019, and June 30, 2019, the range of exercise prices of
stock options outstanding were NT$155~NT$203, NT$173.5~NT$212.5 and NT$173.5,
respectively, and the weighted-average remaining contractual period were as follows:
No. of units
Weighted-
average
(shares in exercise price
Stock options thousands) (in dollars)
Options outstanding at beginning of period 1,466.32 NT$201.00
Options waived 24.67)( -
Options exercised - -
Options revoked - -
Options outstanding at end of period 1,441.65 NT$201.00
Options exercisable at end of period - -
For the six-month period
ended June 30, 2020
No. of units
Weighted-
average
(shares in exercise price
Stock options thousands) (in dollars)
Options outstanding at beginning of period - -
Options granted 1,500.00 NT$203.00
Options waived 7.62)( -
Options exercised - -
Options revoked - -
Options outstanding at end of period 1,492.38 NT$203.00
Options exercisable at end of period - -
For the six-month period
ended June 30, 2020
Type of arrangement June 30, 2020 December 31, 2019 June 30, 2019
Sixth plan of employee
stock options
4 years 4.5 years 5 years
Seventh plan of
employee stock
options
5 years 5.5 years -
Eighth plan of 5.75 years - -
employee stock
options
~46~
(e) The fair value of stock options is measured using the Black-Scholes option-pricing model.
Relevant information is as follows:
(f) For the three-month and six-month periods ended June 30, 2020 and 2019, the expenses
incurred on share-based payment transactions were $7,406, $2,442, $12,478 and $4,966,
respectively.
(21) Share capital
A. As of June 30, 2020 and 2019, the Company’s authorized capital was $9,000,000 (including 800
million shares reserved for employee stock options), and the paid-in capital was $7,633,326 and
$7,633,100, consisting of 763,332,551 shares and 763,310,001 shares, respectively, with a par
value of NT$10 per share. Movements in the number of the Company’s ordinary shares
outstanding are as follows:
B. Treasury shares
(a) Reason for share reacquisition and movements in the number of the Company’s treasury
shares are as follows:
Type of
arrangement
Grant
date
Stock
price
(in dollars)
Exercise
price
(in dollars)
Expected
price
volatility
Expected
option life
Expected
dividends
Risk free
interest
rate
Fair value
per unit
(in dollars)
Sixth plan of
employee stock
options
2018.7.9 NT$173.5 NT$173.5 11.38%~
12.71%
4~5
years
0% 0.66%~
0.71%
NT$17.88~
NT$22.44
Seventh plan of
employee stock
options
2019.7.24 NT$212.5 NT$212.5 10.83%~
11.00%
4~5
years
0% 0.56%~
0.58%
NT$20.57~
NT$23.68
Eighth plan of 2020.4.13 NT$203.00 NT$203.00 12.02%~ 4~5 0% 0.41%~ NT$20.26~
employee stock 11.58% years 0.45% NT$23.79
options
2020 2019
At January 1 763,318,240 763,273,848
Employee stock options exercised 14,311 36,153
At June 30 763,332,551 763,310,001
Name of company Reason for Number of shares
holding the shares reacquisition (shares in thousands) Carrying amount
Subsidiary-ECOVE
Environmental Services
Corp.
To maintain
stockholders’
equity
1 $ 10
Subsidiary-CTCI Investment
Corp."
344 3,241
Subsidiary-CTCI Development
Corp."
912 8,584
1,257 $ 11,835
June 30, 2020
~47~
(b) Pursuant to the R.O.C. Securities and Exchange Law, the number of shares bought back as
treasury share should not exceed 10% of the number of the Company’s issued and outstanding
shares and the amount bought back should not exceed the sum of retained earnings, paid-in
capital in excess of par value and realized capital surplus.
(22) Capital surplus
A. Pursuant to the R.O.C. Company Law, capital surplus arising from paid-in capital in excess of
par value on issuance of common stocks and donations can be used to cover accumulated deficit
or to issue new stocks or cash to shareholders in proportion to their share ownership, provided
that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law
requires that the amount of capital surplus to be capitalized mentioned above should not exceed
10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated
deficit unless the legal reserve is insufficient.
Name of company Reason for Number of shares
holding the shares reacquisition (shares in thousands) Carrying amount
Subsidiary-ECOVE
Environmental Services
Corp.
To maintain
stockholders’
equity
1 $ 10
Subsidiary-CTCI Investment
Corp."
344 3,241
Subsidiary-CTCI Development
Corp."
912 8,584
1,257 $ 11,835
Name of company Reason for Number of shares
holding the shares reacquisition (shares in thousands) Carrying amount
Subsidiary-ECOVE
Environmental Services
Corp.
To maintain
stockholders’
equity
1 $ 10
Subsidiary-CTCI Investment
Corp."
344 3,241
Subsidiary-CTCI Development
Corp."
912 8,584
1,257 $ 11,835
December 31, 2019
June 30, 2019
~48~
B. The details and movements of capital surplus are provided as follows:
C. On November 1, 2019, the Board of Directors resolved to sell its 99.05% equity interest in the
subsidiary, CTCI Resources Engineering Inc., to the subsidiary, CTCI Advanced Systems Inc.,
at a price of $30 (in dollars) per share. This transaction was made for reorganization. The
difference between the sale price of $742,866 and the net equity value was $188,778, which was
adjusted to the equity attributable to the parent company and reduced the non-controlling
interests. The increase in the equity attributable to the parent company was recognized in capital
surplus of $187,351, cumulative translation differences of foreign operations of $591, and
unrealized gain or loss from investments in equity instruments measured at fair value through
other comprehensive income of $836. The transaction was completed on March 2, 2020.
D. Please refer to Note 6 (20) for details about the capital surplus - employee stock options.
(23) Retained earnings
A. When the company generates net profit in the annual accounts, the Company may, after reserving
a sufficient amount of the income before tax to cover the accumulated losses, with the resolution
of the Board of Directors, distribute 1.5% to 5% of the income before tax to pay to the employees
as remuneration, and distribute no more than 1.5% of the income before tax to pay to the Board
Share premium
Treasury share
transactions
Difference
between
consideration
and carrying
amount of
subsidiaries
acquired or
disposed
Employee stock
options Others Total
At January 1, 2020 2,867,566$ 5,043$ 211,172$ 637,425$ 9,242$ 3,730,448$
Employee stock options
exercised 455 - - - - 455
Employee stock options
exercised by subsidiary - - 917 - - 917
Share-based payment
transaction - - - 88,219 - 88,219
Reorganization 187,351 - - - - 187,351
Non-controlling interests - - 13,788)( - - 13,788)(
At June 30, 2020 $ 3,055,372 $ 5,043 $ 198,301 $ 725,644 $ 9,242 $ 3,993,602
Share premium
Treasury share
transactions
Difference
between
consideration
and carrying
amount of
subsidiaries
acquired or
disposed
Employee stock
options Others Total
At January 1, 2019 2,865,969$ 5,043$ 211,172$ 453,627$ 9,242$ 3,545,053$
Employee stock options
exercised by subsidiary 1,316 - - - - 1,316
Share-based payment
transaction - - - 102,075 - 102,075
At June 30, 2019 $ 2,867,285 $ 5,043 $ 211,172 $ 555,702 $ 9,242 $ 3,648,444
~49~
of Directors as remuneration. The remuneration could be in the form of stock or cash, and the
employee remuneration could be distributed to the employees of subsidiaries of the Company
under certain conditions. A report of the distribution of employee remuneration or the Board of
Directors’ remuneration shall be submitted to the stockholders during their meeting.
B. The Company shall, after all taxes and dues have been paid and its losses have been covered and
at the time of allocating surplus profits, first set aside 10% of such profits as legal reserve.
However, when the legal reserve amounts to the authorized capital, this shall not apply.
Furthermore, in accordance with the provisions of laws and regulations and the rules prescribed
by the central competent authority, a special reserve shall be set aside. If there is recovery of the
balance of special reserve, the recovered amount shall be included in the distribution of the profit
for the current year.
The allocable profit for the current year, which is the balance after the profit distribution and
covering losses aforementioned as the preceding paragraph, together with the undistributed
retained earnings accrued from prior years shall be referred to as accumulated distributable
earnings, which shall be distributed as dividends to shareholders according to shareholders’
resolutions.
The Company’s dividend policy takes into consideration the requirements for business expansion
and industry growth, future operating needs and stability of financial structure. Thus, the
distribution of the accumulated distributable earnings is in accordance with the shareholders’
resolutions. Also, the amount of shareholders’ bonus shall not be less than 50% of accumulated
distributable earnings of the Company, and in particular, cash dividends shall not be less than
20% of total dividends distributed.
C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in
proportion to their share ownership, the legal reserve shall not be used for any other purpose.
The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their
share ownership is permitted, provided that the balance of the reserve exceeds 25% of the
Company’s paid-in capital.
D. Special reserve
(a) In accordance with the regulations, the Company shall set aside special reserve from the debit
balance on other equity items at the balance sheet date before distributing earnings. When
debit balance on other equity items is reversed subsequently, the reversed amount could be
included in the distributable earnings.
(b) The amounts previously set aside by the Company as special reserve on initial application of
IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012,
shall be reversed proportionately when the relevant assets are used, disposed of or reclassified
subsequently. Such amounts are reversed upon disposal or reclassified if the assets are
investment property of land, and reversed over the use period if the assets are investment
property other than land.
~50~
E. The Company’s appropriations of 2019 and 2018 earnings had been resolved at the stockholders’
meeting on May 28, 2020 and May 29, 2019, respectively. Details are summarized below:
F. The appropriation of 2019 earnings became effective on August 1, 2020, as resolved by the
shareholders during their meeting on May 28, 2020.
G. For information relating to employees’ compensation (bonuses) and directors’ remuneration,
please refer to Note 6(30).
(24) Operating revenue
Dividends Dividends
per share per share
Amount (in NT dollars) Amount (in NT dollars)
Set aside as legal reserve 116,599$ -$ 182,754$ -$
Set aside as special reserve 419,905 - - -
Reversal of special reserve 1,843)( - 1,417)( -
Distribition of cash dividends
from legal reserve 580,237 0.76 - -
Distribition of cash dividends
from earnings 946,402 1.24 1,721,210 2.255
2,061,300$ 2.00$ 1,902,547$ 2.255$
2019 2018
2020 2019
Revenue from contracts with customers 13,125,068$ 13,079,375$
Other-service concession revenue 136,432 302,090
$ 13,261,500 $ 13,381,465
2020 2019
Revenue from contracts with customers 24,430,625$ 26,656,618$
Other-service concession revenue 275,235 437,305
$ 24,705,860 $ 27,093,923
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~51~
A. Disaggregation of revenue from contracts with customers
The Group derives revenue from the transfer of goods and services over time and at a point in
time in the following major product lines and geographical regions:
For the three-month
period ended
June 30, 2020
Construction
Engineering
Revenue Service Revenue
Other Operating
Revenue Total
Total segment
revenue
11,594,692$ 1,211,249$ 319,127$ 13,125,068$
Inter-segment
revenue 548,539 957 104,974 654,470
12,143,231$ 1,212,206$ 424,101$ 13,779,538$
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point time -$ 1,211,249$ 114,245$ 1,325,494$
Over time 11,594,692 - 204,882 11,799,574
11,594,692$ 1,211,249$ 319,127$ 13,125,068$
For the three-month
period ended
June 30, 2019
Construction
Engineering
Revenue Service Revenue
Other Operating
Revenue Total
Total segment
revenue
11,502,082$ 1,092,311$ 484,982$ 13,079,375$
Inter-segment
revenue 770,008 2,678 43,676 816,362
12,272,090$ 1,094,989$ 528,658$ 13,895,737$
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point time -$ 1,092,311$ 484,982$ 1,577,293$
Over time 11,502,082 - - 11,502,082
11,502,082$ 1,092,311$ 484,982$ 13,079,375$
~52~
B. Contract assets and liabilities
The Group has recognized the following revenue-related contract assets and liabilities:
For the six-month
period ended
June 30, 2020
Construction
Engineering
Revenue Service Revenue
Other Operating
Revenue Total
Total segment
revenue
21,483,110$ 2,371,850$ 575,665$ 24,430,625$
Inter-segment
revenue 1,118,833 1,609 218,717 1,339,159
22,601,943$ 2,373,459$ 794,382$ 25,769,784$
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point time -$ 2,371,850$ 215,454$ 2,587,304$
Over time 21,483,110 - 360,211 21,843,321
21,483,110$ 2,371,850$ 575,665$ 24,430,625$
For the six-month
period ended
June 30, 2019
Construction
Engineering
Revenue Service Revenue
Other Operating
Revenue Total
Total segment
revenue
23,747,085$ 2,235,433$ 674,100$ 26,656,618$
Inter-segment
revenue 1,320,050 8,178 237,896 1,566,124
25,067,135$ 2,243,611$ 911,996$ 28,222,742$
Revenue from
external customer
contracts
Timing of revenue
recognition
At a point time -$ 2,235,433$ 674,100$ 2,909,533$
Over time 23,747,085 - - 23,747,085
23,747,085$ 2,235,433$ 674,100$ 26,656,618$
June 30, December 31, June 30, January 1,
2020 2019 2019 2019
Contract assets-
construction
contract revenue 19,349,327$ 18,653,485$ 18,840,920$ 24,823,432$
Contract liabilities-
construction
contract revenue 14,704,247)( 12,157,272)( 14,196,426)( 13,920,198)(
4,645,080$ 6,496,213$ 4,644,494$ 10,903,234$
~53~
(25) Interest income
(26) Other income
(27) Other gains and losses
2020 2019
Interest income from bank deposits 37,700$ 73,665$
2020 2019
Interest income from bank deposits 71,893$ 131,825$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
2020 2019
Rental revenue 2,467$ 2,700$
Dividend income 26 128
Other income-others 30,205 22,166
32,698$ 24,994$
2020 2019
Rental revenue 3,679$ 4,257$
Dividend income 94 230
Other income-others 53,370 37,745
57,143$ 42,232$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
2020 2019
Gain (loss) on disposal of property, plant and
equipment
2,051$ 1,383)($
Gain on disposal of investments - 5,158
Gain from lease modification 370 -
Foreign exchange (loss) gain 25,895)( 116,335
(Loss) gain on financial assets at
fair value through profit or loss 22,888)( 26,063
Other losses 5,713)( 3,616)(
52,075)($ 142,557$
For the three-month periods ended June 30,
~54~
(28) Finance costs
(29) Expenses by nature
2020 2019
Gain (loss) on disposal of property, plant and
equipment
29,923$ 1,353)($
Gain on disposal of investments - 5,158
Gain from lease modification 370 -
Foreign exchange (loss) gain 224,736)( 116,729
(Loss) gain on financial assets at
fair value through profit or loss 24,316)( 56,214
Other losses 8,149)( 6,327)(
226,908)($ 170,421$
For the six-month periods ended June 30,
2020 2019
Interest expense
Interest on loan 71,772$ 41,950$
Interest on corporate bonds 14,989 -
Interest on lease liability 766 568
87,527$ 42,518$
2020 2019
Interest expense
Interest on loan 123,115$ 123,389$
Interest on corporate bonds 28,670 -
Interest on lease liability 1,440 1,186
153,225$ 124,575$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
2020 2019
Subcontract costs 6,744,052$ 4,444,837$
Materials 3,002,234 4,532,180
Employee benefit expense 2,137,324 2,159,197
Amortization charges on buried equipment 118,914 118,609
Temporary equipment - 1,562
Depreciation 190,964 139,728
Amortization 38,819 36,191
Others 569,579 1,581,278
12,801,886$ 13,013,582$
For the three-month periods ended June 30,
~55~
(30) Employee benefit expense
A. According to the Articles of Incorporation of the Company, when distributing earnings, the
Company shall distribute bonus to the employees and pay remuneration to the directors that
should be 1.5% to 5% and not be higher than 1.5%, respectively, of the total distributed amount.
B. For the three-month and six-month periods ended June 30, 2020 and 2019, employees’
compensation was accrued at $815, ($2,863), $7,645 and $8,074, respectively; directors’
remuneration was accrued at $4,500, $4,500, $9,000 and $9,000, respectively. The
aforementioned amounts were recognized in salary expenses and other expenses.
The employees’ compensation and directors’ remuneration were estimated and accrued based on
an amount of 1.5% to 5% and not higher than 1.5% of distributable profit of current year for the
six-month period ended June 30, 2020.
Employees’ compensation and directors’ remuneration for 2019 as resolved at the meeting of
Board of Directors were in agreement with those amounts recognized in the 2019 financial
statements.
2020 2019
Subcontract costs 10,546,231$ 9,952,088$
Materials 6,734,860 8,575,287
Employee benefit expense 4,248,116 4,394,498
Amortization charges on buried equipment 227,018 219,740
Temporary equipment - 1,566
Depreciation 399,616 282,881
Amortization 76,019 74,638
Others 1,437,473 2,621,112
23,669,333$ 26,121,810$
For the six-month periods ended June 30,
2020 2019
Salaries and wages 1,809,171$ 1,739,811$
Employee stock options 43,646 97,865
Labor and health insurance fees 110,290 119,780
Pension costs 77,495 87,745
Other personnel expenses 96,722 113,996
2,137,324$ 2,159,197$
2020 2019
Salaries and wages 3,544,679$ 3,623,810$
Employee stock options 99,470 141,783
Labor and health insurance fees 245,670 253,826
Pension costs 157,251 182,386
Other personnel expenses 201,046 192,693
4,248,116$ 4,394,498$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~56~
Information about employees’ compensation and directors’ remuneration of the Company as
resolved at the meeting of Board of Directors will be posted in the “Market Observation Post
System” at the website of the Taiwan Stock Exchange.
(31) Income tax
A. Income tax expense
Components of income tax expense:
B. Assessment of income tax
The Company’s income tax returns through 2017 have been assessed and approved by the Tax
Authority.
C. The Company disagreed with the result of the 2017 income tax return assessed by the Tax
Authority and filed for further assessment on November 25, 2019.
D. The Company’s subsidiary, CTCI Arabia Ltd., was ordered by the local tax authorities to pay
back taxes in the amount of $134,635 thousand (SAR 17,212 thousand) for the years 2007
through 2010. CTCI Arabia Ltd. has appealed the decision but has initially paid the tax in the
amount of $134,635 thousand (SAR 17,212 thousand) in order to conduct subsequent
administrative litigation. Therefore, it is difficult to assess the maximum possible loss that CTCI
Arabia Ltd. could incur from this tax dispute.
2020 2019
Current tax:
Current tax on profits for the period 124,328$ 211,896$
Prior year income tax under (over)
estimation 40,777 33,830)(
Total current tax 165,105 178,066
Deferred tax:
Origination and reversal of temporary
differences 1,731)( 72,033)(
Effect of foreign exchange 186 -
Total deferred tax 1,545)( 72,033)(
Income tax expense 163,560$ 106,033$
2020 2019
Current tax:
Current tax on profits for the period 208,257$ 437,590$
Prior year income tax under (over)
estimation 40,777 33,830)(
Total current tax 249,034 403,760
Deferred tax:
Origination and reversal of temporary
differences 49,903 164,639)(
Effect of foreign exchange 486 -
Total deferred tax 50,389 164,639)(
Income tax expense 299,423$ 239,121$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~57~
(32) Earnings per share
Amount
after tax
Weighted-average
number of ordinary
shares outstanding
(shares in
thousands)
Earnings per share
(in dollars)
Basic earnings per share
Profit attributable to the
ordinary shareholders of the
parent
153,356$ 762,063 0.20NT$
Diluted earnings per share
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation - 206
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary
shares 153,356$ 762,269$ 0.20NT$
Amount
after tax
Weighted-average
number of ordinary
shares outstanding
(shares in
thousands)
Earnings per share
(in dollars)
Basic earnings per share
Profit attributable to the
ordinary shareholders of the
parent
272,064$ 762,016 0.36NT$
Diluted earnings per share
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation - -
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares 272,064$ 762,016 0.36NT$
For the three-month period ended June 30, 2020
For the three-month period ended June 30, 2019
~58~
Amount
after tax
Weighted-average
number of ordinary
shares outstanding
(shares in
thousands)
Earnings per share
(in dollars)
Basic earnings per share
Profit attributable to the
ordinary shareholders of the
parent
310,472$ 762,063 0.41NT$
Diluted earnings per share
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation - 206
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary
shares 310,472$ 762,269$ 0.41NT$
Amount
after tax
Weighted-average
number of ordinary
shares outstanding
(shares in
thousands)
Earnings per share
(in dollars)
Basic earnings per share
Profit attributable to the
ordinary shareholders of the
parent
493,537$ 762,016 0.65NT$
Diluted earnings per share
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation - 183
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary
shares 493,537$ 762,199$ 0.65NT$
For the six-month period ended June 30, 2020
For the six-month period ended June 30, 2019
~59~
(33) Supplemental cash flow information
A. Investing activities with partial cash payments
B. Financing activities with partial cash payments:
(34) Changes in liabilities from financing activities
The Group’s liabilities from financing activities for the six-month periods ended June 30, 2020 and
2019 included short-term borrowings, short-term notes and bills payable, corporate bonds payable,
long-term borrowings, and lease liabilities, changes in cash flow from financing, etc. The summary
amount is as follows. For the rest of the information, please refer to the cash flow statement.
2020 2019
Purchase of property, plant and equipment 833,053$ 423,907$
Add: Opening balance of payable on
equipment- 1,785,960
Less: Ending balance of payable on
equipment - -
Cash paid during the period 833,053$ 2,209,867$
2020 2019
Cash dividends 2,041,924$ 2,250,831$
Add: Opening balance of cash dividends
payable - -
Less: Ending balance of cash dividends
payable 1,967,387)( 2,113,814)(
Cash paid during the period 74,537$ 137,017$
2020 2019
At January 1 18,305,180$ 14,966,313$
Changes in cash flow from financing activities 2,036,253 805,820)(
Changes in other non-cash items 59,450 484,646
At June 30 20,400,883$ 14,645,139$
Liabilities from financing activities-gross
~60~
7. RELATED PARTY TRANSACTIONS
(1) Names of related parties and relationship
(2) Significant transactions and balances with related parties
A. Sales of services
The price on the construction contracts entered into with related parties are set through negotiation
by both parties. The collection terms were approximately the same as those with third parties.
Names of related parties Relationship with the Group
Pan Asia Corp. Associate
MIE Industrial Sdn. Bhd. Associate
ZheJiang Boretech Environmental
Engineering Co., Ltd.
Associate
Blue Whale Water Technology Corp. Associate
Powtec ElectroChemical Corp.
(formerly Powertec Energy Corp.)
It was an associate and became a non-related
party starting from September, 2019.
EVER ECOVE CORP. Associate
HDEC-CTCI (Linhai) Corp. Associate
HDEC Corp. Other related party
CTCI Foundation Other related party
CTCI Education Foundation Other related party
PT Eptco Dian Persada Other related party
Topco Scientific Co., Ltd. Other related party
Topco International Investment Co., Ltd. Other related party
2020 2019
Associates 389,281$ 1,035,293$
Other related parties 2,436 4,511
391,717$ 1,039,804$
2020 2019
Associates 964,190$ 1,538,696$
Other related parties 5,620 5,620
969,810$ 1,544,316$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~61~
B. Purchases of services
The price on the construction subcontracts entered into with related parties are set through
negotiation by both parties.
C. Accounts receivable
D. Loans to related parties (shown as other receivables due from related parties)
Loans to related parties are repayable within one year after loans were granted, and the interest
was collected at 6% per annum for the year ended December 31, 2020.
E. Accounts payable
F. Other payables
G. Leasing arrangements - lessee
(a) The Group leases buildings from other related parties. Rental contracts are made for periods
from 2010 to 2029, and payments are made at the end of each year.
(b) On January 1, 2019 (the date of initial application of IFRS 16), the Group increased right-of-
use assets by $88,886.
2020 2019
Associates 46,647)($ 197,059$
Other related parties 132 20,488
46,515)($ 217,547$
2020 2019
Associates 27,857$ 568,843$
Other related parties 132 34,943
27,989$ 603,786$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
June 30, 2020 December 31, 2019 June 30, 2019
MIE Industrial Sdn.
Bhd.
724,456$ 641,882$ 494,211$
Other associates 190,880 112,346 2,562
Other related parties - 6,650 -
915,336$ 760,878$ 496,773$
June 30, 2020 December 31, 2019 June 30, 2019
Other related parties 35,343$ -$ -$
June 30, 2020 December 31, 2019 June 30, 2019
Associates 485,471$ 648,957$ 792,220$
June 30, 2020 December 31, 2019 June 30, 2019
Dividends payable
Other related parties 67,801$ -$ -$
~62~
(c) Lease liability
i. Outstanding balance:
ii. Interest expense
H. Provision for endorsements and guarantees
I. The Group donated $12,000 and $15,000 to the CTCI Education Foundation in March, 2020 and
2019, respectively, for personnel training and enterprise social responsibility.
(3) Key management compensation
June 30, 2020 December 31, 2019 June 30, 2019
Other related
parties 77,153$ 81,077$ 84,988$
2020 2019
Other related parties 262$ 288$
For the six-month periods ended June 30,
June 30, 2020 December 31, 2019 June 30, 2019
Associates 3,307,300$ 3,307,300$ 3,307,300$
2020 2019
Salaries and other short-term employee
benefits
46,190$ 37,158$
Post-employment benefits 474 872
Other long-term benefits 568 619
Share-based payments 3,265 4,851
50,497$ 43,500$
2020 2019
Salaries and other short-term employee
benefits
136,403$ 131,420$
Post-employment benefits 989 1,131
Other long-term benefits 1,136 1,124
Share-based payments 7,255 7,576
145,783$ 141,251$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~63~
8. PLEDGED ASSETS
9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT
COMMITMENTS
In addition to those items which have been disclosed in Note 6 (31), the significant contingent liabilities
and unrecognized contract commitments of the Group as of June 30, 2020 were as follows:
A. Guarantee
(a) The Group had outstanding notes payable for security deposits under various construction
projects amounting to $5,555,951.
(b) The Group had letters of guarantee for warranty and security deposits under various construction
projects amounting to $46,195,969.
(c) The Group had outstanding notes payable for bank financing amounting to $116,203,624.
B. The Group had unused and outstanding letters of credit of $385,196.
C. The Group had outstanding commitments for construction subcontracts and services contracts, less
accounts payable that were already paid and accrued in the future, of $50,353,735.
D. The Group had entered into contracts for acquisition of materials amounting to $1,336,718.
June 30, December 31, June 30,
Pledged assets 2020 2019 2019 Purpose
Financial assets at
amortized cost
Pledged time deposits 163,360$ 130,720$ 107,880$ Guarantee for
construction contracts
Other non-current assets
Pledged time deposits 41,613 46,305 56,875 Guarantee for oil expense,
litigation deposits,
construction contracts and
short-term borrowing
Refundable deposits 312,396 146,639 138,729 Guarantee for oil expense,
rent, golf certificates,
tender bonds, dormitory
deposit, and wages
Property, plant and
equipment
6,160,735 6,116,344 5,890,809 Guarantee for long-term
and short-term borrowings
Investment property 801,774 803,823 805,976
Guarantee for long-term
and short-term borrowings
7,479,878$ 7,243,831$ 7,000,269$
Book value
~64~
E. The subsidiary, CTCI Smart Engineering Corp., has entered into an electrical and mechanical contract
with RPTI International Ltd. (RPTI) on behalf of the joint venture by RSEA Engineering Corp. and
CTCI Smart Engineering Corp. for partial permanent work of electrical and mechanical engineering.
However, as RPTI International Ltd. was behind the schedule, it agreed that CTCI Smart Engineering
Corp. hire others to carry out the pending construction. In addition, because RPTI was unable to
perform the air conditioning construction as stated in the contract, CTCI Smart Engineering Corp.
revoked the air conditioning construction, and re-contract out to Jehng Long Engineering Corp. The
aforementioned construction expenses for hiring others and for working on the terminated
construction and losses were expected to be paid using RPTI’s estimated assessment amount and
retention payment. However, RPTI filed a lawsuit with the Taiwan Taipei District Court, alleging
improper deduction by CTCI Smart Engineering Corp. and requesting construction payment of
$72,024 along with an interest at 5% per annum from November 28, 2007 until the date of repayment.
The case was still in trial and CTCI Smart Engineering Corp. filed a counter-claim on August 8, 2008,
alleging RPTI’s estimated assessment amount and retention amount were insufficient to cover all
payables, and requesting payment of $94,569. The amount of $22,947 of the requested payment of
$94,569 shall be paid along with an interest at 5% per annum from July 16, 2008 until the date of
repayment, while the remaining request amount shall be paid along with an interest at 5% per annum
from the date when RPTI receives the transcription of counter-complaint until the date of repayment.
RPTI expanded its claim to request a payment of $111,079 along with an interest. On April 27, 2015,
Taiwan Taipei District Court rendered a judgement (Year 2008, Zian-Zi No. 21, Civil case) that CTCI
Smart Engineering Corp. needs to pay RPTI an amount of $84,305 which comprises of $72,574 along
with an interest at 5% per annum from November 28, 2007 and of the remaining $11,731 along with
an interest at 5% per annum from December 15, 2010 until the date of repayment. RPTI’s remaining
appeal and CTCI Smart Engineering Corp.’s counter-claim were refuted. CTCI Smart Engineering
Corp. disagreed with the verdict and filed an appeal with the Taiwan High Court in the prescribed
time, asking for rejection to RPTI’s claim and judgment of the counter-claim. The counter-claim is
requesting RPTI to pay an amount of $75,166 which comprises of $22,947 along with an interest at
5% per annum from July 16, 2008 and of remaining $52,218 along with an interest at 5% per annum
from August 9, 2008 until the date of repayment. RPTI filed an incidental appeal requesting CTCI
Smart Engineering Corp. to pay another amount of $7,092 along with an interest at 5% per annum
from November 28, 2007 until the date of repayment. Taiwan High Court rendered the judgement on
August 30, 2017. Refuted the verdict above and commanded that RPTI needs to pay CTCI Smart
Engineering Corp. $57,899 along with an interest at 5% per annum from August 9, 2008 until the
date of repayment. RPTI appealed to the Supreme Court during the legal period because they
disagreed with the judgement. The Supreme Court rendered the judgement that the verdict Taiwan
High Court rendered was void and reverted the case back to the Taiwan High Court for a retrial.
During the retrial, the judge gave explicit instructions that CTCI Smart Engineering Corp. should
obey the tenor sent by the Supreme Court and amend the statement of payment request to the
statement of creditor's rights confirmation request, the statement declares that RPTIC needs to pay
CTCI Smart Engineering Corp. an amount of $57,899 which comprises of $22,947 along with an
interest at 5% per annum from July 16, 2008 and of remaining $34,952 along with an interest at 5%
per annum from August 9, 2008 until the date of repayment and they would be included in the
~65~
Group’s claim in bankruptcy. On March 10, 2020, the Taiwan High Court amended the statement
and rendered the judgement whereby RPTI is required to pay CTCI Smart Engineering Corp. an
amount of $48,144 plus interest. RPTI then filed an appeal with the Supreme Court. According to the
Company’s appointed lawyers, the case is still pending in the Supreme Court, and the case number
is Year 2018, Chong-Shang-Gang-Yi-Zi No. 65.
F. The Company’s second-tier subsidiary, ECOVE Wujih Energy Corp., was ordered to pay $20,000
for air pollution prevention fees by the Environmental Protection Department of the Taichung City
Government on June 16, 2020. ECOVE Wujih Energy Corp. filed an administrative appeal and the
case is still pending with the Taichung City Government.
10. SIGNIFICANT DISASTER LOSS
None.
11. SIGNIFICANT SUBSEQUENT EVENTS
None.
12. OTHERS
(1) Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for shareholders and to maintain an optimal capital
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio.
This ratio is calculated as net debt divided by total capital. Total borrowings include ‘current and
non-current borrowings’ as shown in the consolidated balance sheet. Total capital is calculated as
‘equity’ as shown in the consolidated balance sheet.
The gearing ratios as of June 30, 2020, December 31, 2019 and June 30, 2019 were as follows:
June 30, 2020 December 31, 2019 June 30, 2019
Total borrowings 20,006,980$ 17,877,578$ 14,266,492$
Total equity 17,926,117$ 19,346,997$ 19,263,594$
Gearing ratio 111.61% 92.40% 74.06%
~66~
(2) Financial risk of financial instruments
A. Financial instruments by category
June 30, 2020 December 31, 2019 June 30, 2019
Financial assets
Financial assets at
fair value through
profit or loss
Financial assets
mandatorily
measured at fair
value through
profit or loss 3,697,500$ 275,845$ 382,122$
Financial assets at
fair value through
other comprehensive
income
Designation of equity
instrument 1,772,835 1,323,442 1,270,468
Qualifying debit
instrument - - 27,291
1,772,835$ 1,323,442$ 1,297,759$
Financial assets
Financial assets at
amortized cost
Cash and cash
equivalents 12,504,957$ 20,767,581$ 17,027,571$
Financial assets at
amortized cost 932,149 407,884 180,783
Notes receivable 15,938 63,360 109,921
Accounts receivable 5,223,107 4,513,304 4,714,762
Accounts receivable
due from related
parties 915,336 760,878 496,773
Other receivables 126,171 245,735 230,637
Other receivables
due from related
parties 35,343 - -
Refundable deposits 312,396 146,639 138,729
Long-term
receivables 2,028,104 2,190,730 2,319,445
Other financial assets 48,872 53,563 64,133
22,142,373$ 29,149,674$ 25,282,754$
~67~
B. Risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk.
(b) Risk management is carried out by a central treasury department (Group treasury) under
policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges
financial risks in close cooperation with the Group’s operating units. The Board provides
written principles for overall risk management, as well as written policies covering specific
areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of
derivative financial instruments and non-derivative financial instruments, and investment of
excess liquidity.
June 30, 2020 December 31, 2019 June 30, 2019
Financial liabilities
Financial liabilities at
fair value through
profit or loss
Financial liabilities
mandatorily
measured at fair
value through profit
or loss 33,784$ 54,716$ 4,487$
Financial liabilities
at amortised cost
Short-term
borrowings 5,367,324$ 6,163,306$ 10,396,242$
Short-term notes and
bills payable 17,993 199,921 250,913
Notes payable 7,048 48,369 22,229
Accounts payable 9,869,024 11,708,290 9,664,066
Accounts payable due
to related parties 485,471 648,957 792,220
Other payables 3,887,620 2,848,021 4,088,570
Other payables due to
related parties 67,801 - -
Corporate bonds
payable 8,984,460 5,989,529 -
Long-term
borrowings
(including current
portion) 5,637,203 5,524,822 3,619,337
Deposits received 375,607 326,007 336,382
34,699,551$ 33,457,222$ 29,169,959$
Lease liability 393,903$ 427,602$ 378,647$
~68~
C. Significant financial risks and degrees of financial risks
(a) Market risk
Foreign exchange risk
i. The Group operates internationally and is exposed to exchange rate risk arising from the
transactions of the Company and its subsidiaries used in various functional currency,
primarily with respect to the USD and EUR. Exchange rate risk arises from future
commercial transactions and recognized assets and liabilities.
ii. Management has set up a policy to require group companies to manage their foreign
exchange risk against their functional currency. The companies are required to hedge their
entire foreign exchange risk exposure with the Group treasury.
~69~
iii. The Group’s businesses involve some non-functional currency operations (the
Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’
functional currency: USD and RMB). The information on assets and liabilities
denominated in foreign currencies whose values would be materially affected by the
exchange rate fluctuations is as follows:
Foreign Currency
Amount
(In Thousands) Exchange Rate Book Value
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 69,717$ 29.6600 2,067,806$
EUR:NTD 672 33.2859 22,368
SGD:NTD 1,114 21.2517 23,674
JPY:NTD 344,461 0.2753 94,830
THB:NTD 4,904 0.9605 4,710
MOP:NTD 30,697 3.7101 113,889
RMB:NTD 11,223 4.1956 47,087
USD:VND 1,456 22,815.3846 43,185
USD:IDR 75 14,123.8100 2,225
EUR:VND 178 25,604.5385 5,925
Financial liabilities
Monetary items
USD:NTD 9,506 29.6600 281,948
EUR:NTD 93 33.2859 3,096
RMB:NTD 8,934 4.1956 37,483
MOP:NTD 1,395 3.7101 5,176
CHF:NTD 113 31.1489 3,520
USD:MYR 57,601 4.2825 1,708,446
USD:VND 283 22,815.3846 8,394
USD:THB 346 30.8798 10,262
SEK:THB 3,877 3.3042 12,304
USD:INR 3,499 75.5476 103,780
EUR:INR 684 84.7832 22,768
EUR:MYR 1,329 4.8060 44,237
June 30, 2020
~70~
Foreign Currency
Amount
(In Thousands) Exchange Rate Book Value
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 246,678$ 30.1500 7,437,342$
EUR:NTD 15,146 33.7982 511,908
SGD:NTD 56,526 22.3989 1,266,120
JPY:NTD 745,887 0.2775 206,984
MOP:NTD 18,978 3.7535 71,234
THB:NTD 40,364 1.0106 40,792
RMB:NTD 31,826 4.3294 137,787
GBP:NTD 33 39.6141 1,307
USD:VND 1,753 23,192.3077 52,853
USD:THB 3,060 29.8338 92,259
USD:MYR 547 4.0930 16,492
USD:EUR 1,465 0.8921 44,170
USD:SAR 636 3.7513 19,175
USD:PHP 2,956 50.6723 89,123
THB:USD 72,265 0.0335 73,031
RMB:USD 4,238 0.1436 18,347
Financial liabilities
Monetary items
USD:NTD 17,122 30.1500 516,228
EUR:NTD 1,593 33.7982 53,841
MOP:NTD 4,103 3.7535 15,401
JPY:NTD 43,250 0.2775 12,002
RMB:NTD 3,079 4.3294 13,330
THB:NTD 1,420 1.0106 1,435
USD:MYR 291 4.0930 8,774
USD:VND 309 23,192.3077 9,316
USD:INR 5,922 71.3103 178,548
EUR:USD 455 1.1210 15,378
December 31, 2019
~71~
iv. The unrealized exchange (loss) gain arising from significant foreign exchange variation
on the monetary items held by the Group for the three-month and six-month periods ended
June 30, 2020 and 2019 amounted to ($34,208), $129,705, ($131,588) and $134,193,
respectively.
Foreign Currency
Amount
(In Thousands) Exchange Rate Book Value
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 148,687$ 31.0560 4,617,623$
EUR:NTD 21,862 35.3091 771,928
JPY:NTD 1,745,108 0.2885 503,464
MOP:NTD 57,345 3.8544 221,031
SGD:NTD 3,441 22.9458 78,956
USD:VND 1,861 23,305.0000 57,795
USD:MYR 1,255 4.1415 38,975
USD:THB 779 30.7851 24,193
RMB:NTD 5,228 4.5180 23,620
THB:NTD 9,042 1.0088 9,122
USD:EUR 92 0.8795 2,857
AUD:NTD 53 21.7625 1,153
Financial liabilities
Monetary items
USD:NTD 6,199 31.0560 192,516
USD:THB 2,270 30.7851 70,497
EUR:NTD 1,695 35.3091 59,849
USD:MYR 1,001 4.1415 31,087
SGD:NTD 948 22.9458 21,753
MOP:NTD 4,023 3.8544 15,506
RMB:NTD 1,351 4.5180 6,104
THB:NTD 1,589 1.0088 1,603
June 30, 2019
~72~
v. Analysis of foreign currency market risk arising from significant foreign exchange
variation:
Degree of Effect on Profit
Effect on Other
Comprehensive
Variation or Loss Income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 1% 20,678$ -$
EUR:NTD 1% 224 -
SGD:NTD 1% 237 -
JPY:NTD 1% 948 -
THB:NTD 1% 47 -
MOP:NTD 1% 1,139 -
RMB:NTD 1% 471 -
USD:VND 1% 432 -
USD:IDR 1% 22 -
EUR:VND 1% 59 -
Financial liabilities
Monetary items
USD:NTD 1% 2,819 -
EUR:NTD 1% 31 -
RMB:NTD 1% 375 -
MOP:NTD 1% 52 -
SEK:NTD 1% 35 -
USD:MYR 1% 17,084 -
USD:VND 1% 84 -
USD:THB 1% 103 -
SEK:THB 1% 123 -
USD:INR 1% 1,038 -
EUR:INR 1% 228 -
EUR:MYR 1% 442 -
June 30, 2020
Sensitivity Analysis
~73~
Degree of Effect on Profit
Effect on Other
Comprehensive
Variation or Loss Income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 1% 74,373$ -$
EUR:NTD 1% 5,119 -
SGD:NTD 1% 12,661 -
JPY:NTD 1% 2,070 -
MOP:NTD 1% 712 -
THB:NTD 1% 408 -
RMB:NTD 1% 1,378 -
GBP:NTD 1% 13 -
USD:VND 1% 529 -
USD:THB 1% 923 -
USD:MYR 1% 165 -
USD:EUR 1% 442 -
USD:SAR 1% 192 -
USD:PHP 1% 891 -
THB:USD 1% 730 -
RMB:USD 1% 183 -
Financial liabilities
Monetary items
USD:NTD 1% 5,162 -
EUR:NTD 1% 538 -
MOP:NTD 1% 154 -
JPY:NTD 1% 120 -
RMB:NTD 1% 133 -
THB:NTD 1% 14 -
USD:MYR 1% 88 -
USD:VND 1% 93 -
USD:INR 1% 1,785 -
EUR:USD 1% 154 -
December 31, 2019
Sensitivity Analysis
~74~
Degree of Effect on Profit
Effect on Other
Comprehensive
Variation or Loss Income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 1% 46,176$ -$
EUR:NTD 1% 7,719 -
JPY:NTD 1% 5,035 -
MOP:NTD 1% 2,210 -
SGD:NTD 1% 790 -
USD:VND 1% 578 -
USD:MYR 1% 390 -
USD:THB 1% 242 -
RMB:NTD 1% 236 -
THB:NTD 1% 91 -
USD:EUR 1% 29 -
AUD:NTD 1% 12 -
Financial liabilities
Monetary items
USD:NTD 1% 1,925 -
USD:THB 1% 705 -
EUR:NTD 1% 598 -
USD:MYR 1% 311 -
SGD:NTD 1% 218 -
MOP:NTD 1% 155 -
RMB:NTD 1% 61 -
THB:NTD 1% 16 -
Sensitivity Analysis
June 30, 2019
~75~
Price risk
The Group’s equity securities, which are exposed to price risk, are the held financial assets at
fair value through other comprehensive income, financial assets at fair value through profit or
loss and available-for-sale financial assets. To manage its price risk arising from investments
in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done
in accordance with the limits set by the Group.
Cash flow and fair value interest rate risk
The Group’s interest rate risk arises from borrowings. Borrowings issued at variable rates
expose the Group to cash flow interest rate risk which is partially offset by cash and cash
equivalents held at variable rates. During the six-month periods ended June 30, 2020 and 2019,
the Group’s borrowings at variable rate were denominated in NTD and USD.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the
clients or counterparties of financial instruments on the contract obligations. According to
the Group’s credit policy, each local entity in the Group is responsible for managing and
analyzing the credit risk for each of their new clients before standard payment and delivery
terms and conditions are offered.
ii. Individual risk limits are controlled by internal risk that assesses the credit quality of the
customers, taking into account their financial position, past experience and other factors.
iii. The Group adopts the assumption under IFRS 9, that is, if the contract payments were past
due over 30 days based on the terms, there has been a significant increase in credit risk on
that instrument since initial recognition.
iv. The Group adopts the assumption under IFRS 9, that is, the default occurs when the
customers’ contract payments are past due over 90 days.
v. The Group classifies customers’ accounts receivable and contract assets in accordance
with customer types. The Group applies the simplified approach using provision matrix
and loss rate methodology to estimate expected credit loss under the provision matrix basis.
~76~
vi. The Group used the forecastability of Taiwan Institute of Economic Research boom
observation report to adjust historical and timely information to assess the default
possibility of accounts receivable. On June 30, 2020, December 31, 2019 and June 30,
2019, the provision matrix is as follows:
Note 1: Government institutions, state-owned enterprises and listed companies.
Note 2: Companies that are not included in Note 1.
Movements in relation to the Group applying the simplified approach to provide loss
allowance for accounts receivable, contract assets and lease payments receivable are as
follows:
Excellent
customers
(Note 1)
General
customers
(Note 2)
Individual
assessment
customers Total
June 30, 2020
Expected loss rate 0.03%~0.4% 0.03%~100% 100%
Total book value 3,973,077$ 3,337,054$ 777$ 7,310,908$
Loss allowance 1,291)( 41,691)( 777)( 43,759)(
Excellent
customers
(Note 1)
General
customers
(Note 2)
Individual
assessment
customers Total
December 31, 2019
Expected loss rate 0.03%~0.4% 0.03%~100% 100%
Total book value 4,304,995$ 2,483,418$ 856$ 6,789,269$
Loss allowance 1,386)( 19,633)( 856)( 21,875)(
Excellent
customers
(Note 1)
General
customers
(Note 2)
Individual
assessment
customers Total
June 30, 2019
Expected loss rate 0.03%~0.4% 0.03%~100% 50%~100%
Total book value 4,503,402$ 2,665,486$ 1,090$ 7,169,978$
Loss allowance 2,230)( 22,530)( 1,090)( 25,850)(
2020 2019
At January 1 21,875$ 25,595$
Provision for impairment 21,963 255
Write-offs 79)( -
At June 30 43,759$ 25,850$
Accounts receivable
~77~
(c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated
by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity
requirements to ensure it has sufficient cash to meet operational needs so that the Group
does not breach borrowing limits or covenants on any of its borrowing facilities. Such
forecasting takes into consideration the Group’s debt financing plans, covenant
compliance, and compliance with internal balance sheet ratio targets.
ii. The table below analyses the Group’s non-derivative financial liabilities and net-settled
derivative financial liabilities into relevant maturity groupings based on the remaining
period at the balance sheet date to the contractual maturity date for non-derivative
financial liabilities and to the expected maturity date for derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows.
Non-derivative financial liabilities
June 30, 2020 Less than 1 year More than 1 year
Short-term borrowings 5,388,700$ -$
Short-term notes and bills payable 18,014 -
Notes payable 7,048 -
Accounts payable
(including related parties) 10,354,495 -
Other payables 3,955,421 -
Lease liabilities 130,332 268,646
Bonds payable 77,100 9,308,400
Long-term borrowings
(including current portion) 335,975 5,668,809
Non-derivative financial liabilities:
December 31, 2019 Less than 1 year More than 1 year
Short-term borrowings 6,192,195$ -$
Short-term notes and bills payable 200,000 -
Notes payable 48,369 -
Accounts payable
(including related parties) 12,357,247 -
Other payables 2,848,021 -
Lease liabilities 147,495 297,673
Bonds payable 54,000 6,216,000
Long-term borrowings
(including current portion) 137,215 5,580,244
~78~
(d) Cash flow risk from variations of rates
There is no significant cash flow risk from variations of rates since accounts payable are due
less than one year.
(3) Fair value information
A. The different levels that the inputs to valuation techniques are used to measure fair value of
financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date. A market is regarded as active if it meets
all the following conditions: the items traded in the market are homogeneous; willing
buyers and sellers can normally be found at any time; and prices are available to the
public. The fair value of the Group’s investment in listed stocks, beneficiary
certificates with quoted market prices is included in Level 1.
Non-derivative financial liabilities:
June 30, 2019 Less than 1 year More than 1 year
Short-term borrowings 10,443,579$ -$
Short-term notes and bills payable 251,076 -
Notes payable 22,229 -
Accounts payable
(including related parties) 10,456,286 -
Other payables 4,088,570 -
Lease liabilities 126,174 252,473
Long-term borrowings
(including current portion) 225,590 4,406,373
Derivative financial liabilities:
Between 3 months June 30, 2020 Less than 3 months and 1 year
Exchange rate swaps (net-settled) $ - $ 20,109
Forward exchange contracts 9,315 4,360
Derivative financial liabilities:
Between 3 months December 31, 2019 Less than 3 months and 1 year
Exchange rate swaps (net-settled) $ 29,875 $ -
Forward exchange contracts 22,784 2,057
Derivative financial liabilities:
Between 3 months June 30, 2019 Less than 3 months and 1 year
Exchange rate swaps (net-settled) $ 4,162 $ -
Merchandise exchange contracts 19 -
Forward exchange contracts - 306
~79~
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly. The fair value of the Group’s investment
in most derivative instruments is included in Level 2.
Level 3: Inputs for the asset or liability that are not based on observable market data.
B. The related information on financial and non-financial instruments measured at fair value by
level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:
(a) The related information on the nature of the assets and liabilities is as follows:
June 30, 2020 Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value
through profit or loss
Beneficiary certificates 3,684,668$ -$ -$ 3,684,668$
Derivative instruments - 12,832 - 12,832
Financial assets at fair value
through other comprehensive
income
Equity securities - current 431,760 - - 431,760
Equity securities - non-current - - 1,341,075 1,341,075
4,116,428$ 12,832$ 1,341,075$ 5,470,335$
Financial liabilities:
Financial liabilities at fair
value through profit or loss
Derivative instruments -$ 33,784$ -$ 33,784$
~80~
(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1)
are listed below by characteristics:
December 31, 2019 Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value
through profit or loss
Beneficiary certificates 275,845$ -$ -$ 275,845$
Derivative instruments - - - -
Financial assets at fair value
through other comprehensive
income
Equity securities - current 464,943 - - 464,943
Equity securities - non-current - - 858,499 858,499
740,788$ -$ 858,499$ 1,599,287$
Financial liabilities:
Financial liabilities at fair
value through profit or loss
Derivative instruments -$ 54,716$ -$ 54,716$
June 30, 2019 Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value
through profit or loss
Beneficiary certificates 369,341$ -$ -$ 369,341$
Derivative instruments - 12,781 - 12,781
Financial assets at fair value
through other comprehensive
income
Equity securities - current 502,059 - - 502,059
Equity securities - non-current - - 768,409 768,409
Debt securities - 27,291 - 27,291
871,400$ 40,072$ 768,409$ 1,679,881$
Financial liabilities:
Financial liabilities at fair
value through profit or loss
Derivative instruments -$ 4,487$ -$ 4,487$
Listed shares Open-end fund
Market quoted price Closing price Net asset value
~81~
ii. Except for financial instruments with active markets, the fair value of other financial
instruments is measured by using valuation techniques or by reference to counterparty
quotes.
C. There was no transfer between Level 1 and Level 2 for the six-month periods ended June 30,
2020 and 2019.
D. Movements on Level 3 for the six-month periods ended June 30, 2020 and 2019 are as follows:
E. For the six-month period ended June 30, 2020, there was no transfer into or out from Level 3.
F. Group finance segment is in charge of valuation procedures for fair value measurements being
categorized within Level 3, which is to verify independent fair value of financial instruments.
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
information is independent, reliable and in line with other resources and represented as the
exercisable price, and frequently calibrating valuation model, performing back-testing, updating
inputs used to the valuation model and making any other necessary adjustments to the fair value.
G. The following is the qualitative information of significant unobservable inputs and sensitivity
analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair
value measurement:
2020 2019
Equity securities Equity securities
At January 1 858,499$ 788,611$
Increase in investments in equity instruments
measured at fair value through other
comprehensive income 504,206 -
Recorded as unrealized losses on
valuation of investments in equity
instruments measured at fair value
through other comprehensive income 21,612)( 20,223)(
Effects of changes in foreign exchange rates 18)( 21
At June 30 1,341,075$ 768,409$
Fair value at
June 30, 2020
Valuation
technique
Significant
unobservable input
Range (weighted
average)
Relationship of
inputs to fair value
171,986$ Median:1.86
Average:1.91
Liquidity discount:
17.50%
Unlisted shares 1,169,089 Net assets value Not applicable - Not applicable
Non-derivative
equity instrument:
Unlisted shares Market
comparable
companies
Price to book ratio
multiple, discount
for lack of
marketability
The higher the
multiple and
control premium,
the higher the fair
value
~82~
H. 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 and liabilities categorized within Level 3 if the inputs used to valuation models
have changed:
Fair value at
December 31,
2019
Valuation
technique
Significant
unobservable input
Range (weighted
average)
Relationship of
inputs to fair value
Unlisted shares 193,598$ Market
comparable
companies
Price to book ratio
multiple, discount
for lack of
marketability
Median:1.86
Average:1.91
Liquidity discount:
17.5%
The higher the
multiple and
control premium,
the higher the fair
value
Unlisted shares 664,901 Net assets value Not applicable - Not applicable
Fair value at
June 30, 1019
Valuation
technique
Significant
unobservable input
Range (weighted
average)
Relationship of
inputs to fair value
Unlisted shares 219,392$ Market
comparable
companies
Price to book ratio
multiple, discount
for lack of
marketability
Median:1.83
Average:1.83
Liquidity discount:
17.5%
The higher the
multiple and
control premium,
the higher the fair
value
Unlisted shares 549,017 Net assets value Not applicable - Not applicable
Non-derivative
equity instrument:
Non-derivative
equity instrument:
Input Change
Favourable
change
Unfavourable
change
Favourable
change
Unfavourable
change
Financial
assetsEquity
instrument
Price to book
ratio multiple,
discount for lack
of marketability
± 1% -$ -$ 1,720$ 1,720)($
June 30, 2020
Recognized in
profit or loss
Recognized in other
comprehensive income
~83~
13. SUPPLEMENTARY DISCLOSURES
(1) Significant transactions information
A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates
and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million
or 20% of the Company’s paid-in capital: Please refer to table 4.
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-
in capital or more: Please refer to table 5.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more:
Please refer to table 6.
Input Change
Favourable
change
Unfavourable
change
Favourable
change
Unfavourable
change
Financial
assetsEquity
instrument
Price to book
ratio multiple,
discount for lack
of marketability
± 1% -$ -$ 1,936$ 1,936)($
Input Change
Favourable
change
Unfavourable
change
Favourable
change
Unfavourable
change
Financial
assets
Equity
instrument
Price to book
ratio multiple,
discount for lack
of marketability
± 1% -$ -$ 1,716$ 1,741)($
June 30, 2019
Recognized in
profit or loss
Recognized in other
comprehensive income
December 31, 2019
Recognized in
profit or loss
Recognized in other
comprehensive income
~84~
I. Derivative financial instruments undertaken during the reporting periods: Please refer to Notes
6(2) and 12(2).
J. Significant inter-company transactions during the reporting periods: Please refer to table 7.
(2) Information on investees
Names, locations and other information of investee companies (not including investees in Mainland
China):Please refer to table 8.
(3) Information on investments in Mainland China
A. Basic information: Please refer to table 9.
B. Significant transactions, either directly or indirectly through a third area, with investee companies
in the Mainland Area: None.
(4) Major shareholders information
Names, number of shares and shareholding ratio of major shareholders whose shareholding ratio
more than 5%: Please refer to table 10.
14. SEGMENTAL FINANCIAL INFORMATION
(1) General information
A. The Group has identified which segments should be reported based on the information used by
the Board of Directors to make decisions.
B. The Board of Directors classify reportable segments as construction engineering department,
environmental resource department, sales department and other operating departments.
(2) Measurement of segmental financial information
The Board of Directors evaluates the performance of segments based on segmental income. Interest
income and expenses cannot be attributed to any segment because such activity is handled by the
Company’s financial department.
(3) Segmental income, assets and liabilities of segments
The segmental financial information provided to the Board of Directors is as follows:
~85~
(4) Reconciliation information of segmental income
Intra-segment sales are of arm’s length transactions. The measurement of external revenues reported
to the Board of Directors is consistent with revenues in the statement of comprehensive income. The
reconciliation information of income from continuing operations before income tax and segmental
income is as follows:
Construction
Engineering
Environmental
Resource Sales Other Operating
Department Department Department Departments Total
External revenues 21,483,110$ 2,647,085$ 360,211$ 215,454$ 24,705,860$
Internal revenues 1,118,833 1,609 - 218,717 1,339,159
Segmental revenues 22,601,943$ 2,648,694$ 360,211$ 434,171$ 26,045,019$
Segmental income 235,632$ 574,902$ 57,103$ 121,195$ 988,832$
Depreciation and
amortization 272,117$ 151,991$ 11,290$ 40,237$ 475,635$
For the six-month period ended June 30, 2020
Construction
Engineering
Environmental
Resource Sales Other Operating
Department Department Department Departments Total
External revenues 23,747,085$ 2,533,349$ 67,249$ 746,240$ 27,093,923$
Internal revenues 1,320,050 8,178 - 237,896 1,566,124
Segmental revenues 25,067,135$ 2,541,527$ 67,249$ 984,136$ 28,660,047$
Segmental income 238,830$ 592,591$ 44,279$ 90,337$ 966,037$
Depreciation and
amortization 208,702$ 102,591$ 5,704$ 40,522$ 357,519$
For the six-month period ended June 30, 2019
2020 2019
Segmental income 988,832$ 966,037$
Adjustment and elimination 47,695 6,076
Share of profit (loss) of associates and joint
ventures accounted for using the equity
method 75,520 208,525)(
Interest income 71,893 131,825
Foreign exchange (loss) gain 224,736)( 116,729
Finance costs 153,225)( 124,575)(
Others 54,971 95,924
Income from continuing operations before
income tax 860,950$ 983,491$
For the six-month periods ended June 30,
Item Value
0 CTCI Corp. CTCI Arabia Ltd. Other
receivables
Yes 907,620$ 889,800$ -$ - 2 - For
operational
need
-$ None -$ 3,044,050$ 6,088,101$ -
0 CTCI Corp. CTCI Engineering &
Construction
Sdn. Bhd.
Other
receivables
Yes 303,300 296,600 296,600 1.836%~1.908% 2 - For
operational
need
- None - 3,044,050 6,088,101 -
0 CTCI Corp. CTCI Singapore
Pte. Ltd.
Other
receivables
Yes 605,080 593,200 - - 2 - For
operational
need
- None - 3,044,050 6,088,101 -
0 CTCI Corp. CTCI Machinery Corp. Other
receivables
Yes 600,000 600,000 600,000 1.01% 2 - For
operational
need
- None - 3,044,050 6,088,101 -
0 CTCI Corp. CCJV P1 Engineering &
Construction
Sdn. Bhd.
Other
receivables
Yes 1,830,367 1,794,430 1,215,467 1.352%~1.961% 2 - For
operational
need
- None - 3,044,050 6,088,101 -
0 CTCI Corp. CTCI Smart
Engineering Corp.
Other
receivables
Yes 500,000 500,000 500,000 0.93%~1.01% 2 - For
operational
need
- None - 3,044,050 6,088,101 -
0 CTCI Corp. CTCI (Thailand)
Co., Ltd.
Other
receivables
Yes 1,000,000 1,000,000 912,475 1.25%~1.5% 2 - For
operational
need
- None - 3,044,050 6,088,101 -
1 CTCI Overseas
Co., Ltd.
Superiority
(Thailand) Co., Ltd.
Other
receivables
Yes 71,853 - - - 2 - For
operational
need
- None - 736,396 736,396 -
1 CTCI Overseas
Co., Ltd.
CCJV P1 Engineering &
Construction
Sdn. Bhd.
Other
receivables
Yes 432,218 - - - 2 - For
operational
need
- None - 736,396 736,396 -
1 CTCI Overseas
Co., Ltd.
CIPEC
Construction Inc.
Other
receivables
Yes 20,988 - - - 2 - For
operational
need
- None - 736,396 736,396 -
1 CTCI Overseas
Co., Ltd.
CTCI
Americas Inc.
Other
receivables
Yes 124,353 - - - 2 - For
operational
need
- None - 736,396 736,396 -
2 ECOVE
Environment Corp.
ECOVE
Solar Energy Corp.
Other
receivables
Yes 200,000 200,000 200,000 1.01% 2 - For
operational
need
- None - 465,745 1,862,982 -
3 ECOVE
Environment
Services Corp.
ECOVE Solvent
Recycling Corp.
Other
receivables
Yes 36,000 30,000 - - 2 - For
operational
need
- None - 65,766 263,064 -
Allowance
for
doubtful
accounts
Collateral
Limit on loans
granted to
a single party
(Note 7)
Ceiling on
total loans granted
(Note 7) Footnote
Reason
for short-term
financing
(Note 6)
No.
(Note 1) Creditor Borrower
General
ledger
account
(Note 2)
Is a
related
party
Maximum
outstanding
balance during
the six-month
period ended
June 30, 2020
(Note 3)
Balance at
June 30, 2020
(Note 8)
Actual amount
drawn down
Interest
rate
Nature of
loan
(Note 4)
Amount of
transactions
with the
borrower
(Note 5)
CTCI Corporation and its subsidiaries
Loans to others
For the six-month period ended June 30, 2020
Table 1 Expressed in thousands of NTD
(Except as otherwise indicated)
Table 1 Page 1
Item Value
Allowance
for
doubtful
accounts
Collateral
Limit on loans
granted to
a single party
(Note 7)
Ceiling on
total loans granted
(Note 7) Footnote
Reason
for short-term
financing
(Note 6)
No.
(Note 1) Creditor Borrower
General
ledger
account
(Note 2)
Is a
related
party
Maximum
outstanding
balance during
the six-month
period ended
June 30, 2020
(Note 3)
Balance at
June 30, 2020
(Note 8)
Actual amount
drawn down
Interest
rate
Nature of
loan
(Note 4)
Amount of
transactions
with the
borrower
(Note 5)
3 ECOVE
Environment
Services Corp.
CTCI Smart
Engineering Corp.
Other
receivables
Yes 30,000$ 30,000$ -$ - 2 - For
operational
need
-$ None -$ 65,766$ 263,064$ -
3 ECOVE
Environment
Services Corp.
CTCI Machinery Corp. Other
receivables
Yes 30,000 30,000 30,000 1.01% 2 - For
operational
need
- None - 65,766 263,064 -
3 ECOVE
Environment
Services Corp.
CTCI Corp. Other
receivables
Yes 30,000 - - - 2 - For
operational
need
- None - 65,766 263,064 -
4 ECOVE
Solar Energy Corp.
ECOVE
Solar Power Corp.
Other
receivables
Yes 90,000 90,000 - - 2 - For
operational
need
- None - 409,355 409,355 -
4 ECOVE
Solar Energy Corp.
ECOVE
South Corp. Ltd.
Other
receivables
Yes 94,000 94,000 18,000 1.48% 2 - For
operational
need
- None - 409,355 409,355 -
5 ECOVE Waste
Management Corp.
CTCI Machinery Corp. Other
receivables
Yes 5,000 - - - 2 - For
operational
need
- None - 7,966 31,866 -
5 ECOVE Waste
Management Corp.
CTCI Smart
Engineering Corp.
Other
receivables
Yes 5,000 - - - 2 - For
operational
need
- None - 7,966 31,866 -
6 CTCI Investment
Corp.
CIPEC
Construction Inc.
Other
receivables
Yes 21,480 21,059 20,945 0.841%~0.889% 2 - For
operational
need
- None - 90,484 361,936 -
6 CTCI Investment
Corp.
Superiority
(Thailand) Co., Ltd.
Other
receivables
Yes 70,261 70,261 70,261 1.25% 2 - For
operational
need
- None - 90,484 361,936 -
6 CTCI Investment
Corp.
CTCI
Advanced
System Inc.
Other
receivables
Yes 100,000 90,000 90,000 0.91% 2 - For
operational
need
- None - 90,484 361,936 -
7 PT CTCI International
Indonesia
Pt Eptco
Dian Persada
Other
receivables
Yes 37,026 35,343 35,343 6.00% 2 - For
operational
need
- Guaranteed
by equity
interest
35,343 42,840 42,840 -
8 CTCI Advanced
System Inc.
CTCI Corp. Other
receivables
Yes 45,000 - - - 2 - For
operational
need
- None - 20,798 83,190 -
9 CTCI Resources
Engineering
Inc.
CTCI
Advanced
System Inc.
Other
receivables
Yes 25,000 25,000 - - 2 - For
operational
need
- None - 36,506 146,203 -
Table 1 Page 2
Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.
Note 2: Fill in the name of account in which the loans are recognized, such as receivables-related parties, current account with stockholders, prepayments, temporary payments, etc.
Note 3: Fill in the maximum outstanding balance of loans to others during the six-month period ended June 30, 2020.
Note 4: The numbers filled in for the nature of loans are as follows:
(1) Business association is labeled as ‘1’.
(2) Short-term financing is labeled as ‘2’.
Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current year.
Note 6: Fill in purpose of loan when nature of loan belongs to short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.
Note 7: The calculation and amount on ceiling of loans are as follows:
[The company]
(1) The limit on loans granted to a single party shall not exceed 20% of the Company's net assets value.
(2) The ceiling on total loans shall not exceed 40% of the Company's net assets value.
[Domestic subsidiaries and overseas subsidiaries]
(1) The limit on loans granted to a single party by domestic subsidiaries and overseas subsidiaries shall not exceed 10% and 40% of the Company's net assets value, respectively.
(2) The ceiling on total loans shall not exceed 40% of the Company's net assets value.
Note 8: The amounts of funds to be loaned to others which have been approved by the board of directors of a public company in accordance with Article 14, Item 1 of the “Regulations Govering Loaning of Funds and Making
of Endorsements/Guarantees by public Companies” should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they
have not yet been appropriated. However, this balance should excluded the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the board of directors of a public company has
authorised the chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/
Guarantees by Public Companies”, the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the board of directors, and these lines of loaning should not be
excluded from this balance even though the loans are repaid subsequently, for taking into consideration they could be loaned again thereafter.
Table 1 Page 3
Company name
Relationship with
the endorser/
guarantor
(Note 2)
0 CTCI Corp. Universal Engineering
(BVI) Corporation
2 45,660,756$ 30,330$ 29,660$ -$ -$ 0.19% 91,321,512$ Y N N -
0 CTCI Corp. CTCI Americas, Inc. 2 45,660,756 1,384,050 1,353,475 304,408 - 8.89% 91,321,512 Y N N -
0 CTCI Corp. CTCI Engineering &
Construction Sdn. Bhd.
2 45,660,756 2,042,448 2,016,880 1,298,381 - 13.25% 91,321,512 Y N N -
0 CTCI Corp. CINDA Engineering &
Construction Pvt. Ltd.
2 45,660,756 3,432,561 3,432,561 1,792,017 - 22.55% 91,321,512 Y N N -
0 CTCI Corp. CTCI Arabia Ltd. 2 45,660,756 3,503,115 3,425,730 3,456,755 - 22.51% 91,321,512 Y N N -
0 CTCI Corp. CTCI Singapore Pte. Ltd. 2 45,660,756 3,546,195 3,395,639 1,191,830 - 22.31% 91,321,512 Y N N -
0 CTCI Corp. CTCI Overseas
Co., Ltd.
2 45,660,756 4,330,371 4,236,405 1,350,924 - 27.83% 91,321,512 Y N N -
0 CTCI Corp. CTCI Machinery Corp. 2 45,660,756 13,059,202 12,221,058 11,873,888 - 80.29% 91,321,512 Y N N -
0 CTCI Corp. CTCI Trading Shanghai
Co., Ltd.
2 45,660,756 84,924 83,048 - - 0.55% 91,321,512 Y N Y -
0 CTCI Corp. CTCI Shanghai
Co., Ltd.
2 45,660,756 994,035 964,124 38,989 - 6.33% 91,321,512 Y N Y -
0 CTCI Corp. CTCI Beijing
Co., Ltd.
2 45,660,756 1,329,601 1,291,778 510,731 - 8.49% 91,321,512 Y N Y -
0 CTCI Corp. CCJV P1
Engineering &
Construction Sdn. Bhd.
2 45,660,756 894,735 163,130 - - 1.07% 91,321,512 Y N N -
0 CTCI Corp. CTCI Smart Engineering
Corp.
2 45,660,756 1,657,806 1,657,806 442,721 - 10.89% 91,321,512 Y N N -
0 CTCI Corp. CTCI (Thailand)
Co., Ltd.
2 45,660,756 2,953,343 2,903,871 754,275 - 19.08% 91,321,512 Y N N -
0 CTCI Corp. CTCI Chemical Corp. 2 45,660,756 19,335 18,908 12,296 - 0.12% 91,321,512 Y N N -
0 CTCI Corp. CTCI-HDEC (Chungli)
Corp.
6 45,660,756 102,000 102,000 102,000 - 0.67% 91,321,512 Y N N -
0 CTCI Corp. CB&I-CTCI B.V. 6 45,660,756 6,426,891 2,532,720 2,532,720 - 16.64% 91,321,512 N N N -
Amount of
endorsements/
guarantees
secured with
collateral
Ratio of
accumulated
endorsement/
guarantee amount
to net asset value
of the endorser/
guarantor company
Ceiling on
total amount of
endorsements/
guarantees
provided
(Note 3)
Provision of
endorsements/
guarantees by
parent
company to
subsidiary
(Note 7)
Provision of
endorsements/
guarantees by
subsidiary to
parent
company
(Note 7)
Outstanding
endorsement/
guarantees
amount at
June 30, 2020
(Note 5)
CTCI Corporation and its subsidiaries
Provision of endorsements and guarantees to others
For the six-month period ended June 30, 2020
Table 2 Expressed in thousands of NTD
(Except as otherwise indicated)
Number
(Note 1)
Endorser/
guarantor
Party being
endorsed/guaranteed
Limit on
endorsements/
guarantees
provided for
a single party
(Note 3)
Maximum
outstanding
endorsement/
guarantee
amount as of
June 30, 2020
(Note 4)
Provision of
endorsements/
guarantees to
the party in
Mainland
China
(Note 7) Footnote
Actual amount
drawn down
(Note 6)
Table 2 Page 1
Company name
Relationship with
the endorser/
guarantor
(Note 2)
Amount of
endorsements/
guarantees
secured with
collateral
Ratio of
accumulated
endorsement/
guarantee amount
to net asset value
of the endorser/
guarantor company
Ceiling on
total amount of
endorsements/
guarantees
provided
(Note 3)
Provision of
endorsements/
guarantees by
parent
company to
subsidiary
(Note 7)
Provision of
endorsements/
guarantees by
subsidiary to
parent
company
(Note 7)
Outstanding
endorsement/
guarantees
amount at
June 30, 2020
(Note 5)
Number
(Note 1)
Endorser/
guarantor
Party being
endorsed/guaranteed
Limit on
endorsements/
guarantees
provided for
a single party
(Note 3)
Maximum
outstanding
endorsement/
guarantee
amount as of
June 30, 2020
(Note 4)
Provision of
endorsements/
guarantees to
the party in
Mainland
China
(Note 7) Footnote
Actual amount
drawn down
(Note 6)
0 CTCI Corp. Blue Whale Water
Technology Co., Ltd.
6 45,660,756$ 769,300$ 769,300$ 599,760$ -$ 5.05% 91,321,512$ N N N -
0 CTCI Corp. HDEC-CTCI (Linhai)
Corp.
6 45,660,756 1,215,000 1,215,000 522,000 - 7.98% 91,321,512 N N N -
0 CTCI Corp. CIPEC Construction Inc. 2 45,660,756 549,404 547,451 86,451 - 3.60% 91,321,512 Y N N -
0 CTCI Corp. EVER ECOVE Corp. 6 45,660,756 1,102,500 1,102,500 261,708 - 7.24% 91,321,512 N N N -
0 CTCI Corp. CTCI Malaysia Sdn. Bhd. 2 45,660,756 1,000,890 711,840 16,622 - 4.68% 91,321,512 Y N N -
1 CTCI Advanced
System Inc.
Century Ahead Ltd. 2 207,975 18,198 17,796 - - 7.63% 415,950 N N N -
2 CTCI Chemical
Corp.
CTCI Machinery Corp. 5 731,808 532,830 532,830 532,830 - 218.43% 1,463,617 N N N -
3 CTCI Resources
Engineering
Inc.
CTCI Smart Engineering
Corp.
5 1,095,174 267,102 267,102 267,102 - 65.07% 2,190,348 N N N -
4 ECOVE
Environment Corp.
ECOVE South
Corp. Ltd.
2 9,314,908 150,000 150,000 66,700 - 2.89% 13,972,362 N N N -
4 ECOVE
Environment Corp.
ECOVE Solar Power
Corp.
2 9,314,908 417,000 417,000 286,686 - 8.04% 13,972,362 N N N -
4 ECOVE
Environment Corp.
ECOVE Solar Energy
Corp.
2 9,314,908 2,108,706 2,070,725 1,194,261 - 39.94% 13,972,362 N N N -
4 ECOVE
Environment Corp.
ECOVE Solvent
Recycling Corp.
2 9,314,908 213,400 157,600 115,858 - 3.04% 13,972,362 N N N -
4 ECOVE
Environment Corp.
EVER ECOVE Corp. 6 9,314,908 220,500 220,500 52,342 - 4.25% 13,972,362 N N N -
5 ECOVE Solar Energy
Corp.
ECOVE South
Corp. Ltd.
2 4,093,551 14,000 14,000 11,900 - 1.32% 6,140,326 N N N -
5 ECOVE Solar Energy
Corp.
ECOVE Solar Power
Corp.
2 4,093,551 757,076 757,076 468,584 - 71.17% 6,140,326 N N N -
6 ECOVE Solar Power
Corp.
ECOVE Solar Energy
Corp.
3 1,060,185 12,420 12,420 12,420 - 4.54% 1,590,277 N N N -
Table 2 Page 2
Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1) The Company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:
(1) Having business relationship.
(2) The endorser/guarantor company owns directly or indirectly more than 50% voting shares of the endorsed/guaranteed company.
(3) The endorsed/guaranteed company owns directly or indirectly more than 50% voting shares of the endorser/guarantor company.
(4) The endorsed/guaranteed parent company directly or indirectly owns more than 90% voting shares of the endorser/guarantor subsidiary.
(5) Mutual guarantee of the trade as required by the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) The performance guarantees for the sale of pre-sales contracts under the Consumer Protection Law are jointly guaranteed.
Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s
“Procedures for Provision of Endorsements and Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount
of endorsements/guarantees provided in the footnote.
[The company]
(1) The limit on endorsements and guarantees granted to a single party shall not exceed 300% of the Company’s net assets value in last financial statements which was reviewed by accountant.
(2) The ceiling on total endorsements and guarantees shall not exceed 600% of the Company’s net assets value in last financial statements which was reviewed by accountant.
[Domestic subsidiaries and overseas subsidiaries]
(1) The limit on endorsements and guarantees granted to a single party shall not exceed 100% to 400% of the Company's net assets value in last financial statements which was reviewed by accountant.
(2) The ceiling on total endorsements and guarantees shall not exceed 200% to 600% of the Company's net assets value in last financial statements which was reviewed by accountant.
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided.
Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities. And all other
events involve endorsements and guarantees should be included in the balance of outstanding endorsements and guarantees.
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.
Table 2 Page 3
Type Name
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market value
CTCI Corp. Fund Fubon US Preferred Stock ETF - Financial assets at fair value through
profit or loss-current
140,000 2,800$ - 2,292$ -
CTCI Corp. Fund FSITC Taiwan Money Market - Financial assets at fair value through
profit or loss-current
12,989,248 200,000 - 200,072 -
CTCI Corp. Fund Taishin 1699 Money Market Fund - Financial assets at fair value through
profit or loss-current
110,206,553 1,500,126 - 1,500,925 -
CTCI Corp. Fund Capital Money Market Fund - Financial assets at fair value through
profit or loss-current
12,942,975 210,085 - 210,149 -
CTCI Corp. Fund Jih Sun Money Market Fund - Financial assets at fair value through
profit or loss-current
3,353,903 50,000 - 50,031 -
1,963,011 1,963,469$
Adjustment 458
1,963,469$
CTCI Corp. Common Stock China Steel Chemical Corp. - Financial asset at fair value through
other comprehensive income-current
1,691,916 93,982$ - 177,652$ -
CTCI Corp. Common Stock Taiwan Cement Corp. - Financial asset at fair value through
other comprehensive income-current
2,118,815 68,448 - 90,367 -
162,430 268,019$
Adjustment 105,589
268,019$
CTCI Corp. Common Stock Core Pacific City Co., Ltd. - Financial assets at fair value through
other comprehensive income-non-
current
22,428,000 360,000$ 2.26 171,986$ -
CTCI Corp. Common Stock CDIB & Partners Investment
Holding Corp.
The Company is the
supervisor
Financial assets at fair value through
other comprehensive income-non-
current
27,000,000 250,000 2.48 250,000 -
CTCI Corporation and its subsidiaries
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
For the six-month period ended June 30, 2020
Footnote
(Note 4)Securities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Table 3
Marketable Securities (Note 1) As of June 30, 2020
Expressed in thousands of NTD
(Except as otherwise indicated)
Table 3 Page 1
Type Name
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market value
Footnote
(Note 4)Securities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Marketable Securities (Note 1) As of June 30, 2020
CTCI Corp. Common Stock Metro-consultant Co., Ltd. The Company is the
Board of director
Financial assets at fair value through
other comprehensive income-non-
current
300,000 3,000$ 6.00 3,000$ -
CTCI Corp. Common Stock Ever Victory Global Limited. - Financial assets at fair value through
other comprehensive income-non-
current
29,805,000 912,314 5.17 912,314 -
CTCI Corp. Common Stock Heng Keng Corp. - Financial assets at fair value through
other comprehensive income-non-
current
20,000 3,000 5.12 - -
1,528,314 1,337,300$
Adjustment 191,014)(
1,337,300$
CTCI Investment Corp. Fund Franklin Templeton Sinoam Money Market Fund - Financial assets at fair value through
profit or loss-current
769,016 8,003$ - 8,003$ -
CTCI Investment Corp. Fund Jih Sun Money Market Fund - Financial assets at fair value through
profit or loss-current
726,367 10,836 - 10,836 -
CTCI Investment Corp. Common Stock CTCI Corp. The Company Financial assets at fair value through
other comprehensive income-non-
current
344,436 13,640 0.05 13,640 -
CTCI Investment Corp. Common Stock Global Strategic Investment Inc. - Financial assets at fair value through
other comprehensive income-non-
current
283,500 963 0.65 963 -
CTCI Investment Corp. Common Stock Powtec ElectroChemical Corp. - Financial assets at fair value through
other comprehensive income-non-
current
211,291,688 - 16.03 - -
CTCI Development Corp. Common Stock CTCI Corp. The Company Financial assets at fair value through
other comprehensive income-non-
current
912,170 36,122 0.12 36,122 -
CTCI Development Corp. Common Stock CTCI Advanced System Inc. Subsidiary Financial assets at fair value through
other comprehensive income-non-
current
324,417 20,211 1.38 20,211 -
CTCI Development Corp. Fund Jih Sun Money Market Fund - Financial assets at fair value through
profit or loss-current
707,447 10,553 - 10,553 -
CTCI Resources
Engineering Inc.
Common Stock Global Strategic Investment Inc. - Financial assets at fair value through
other comprehensive income-non-
current
567,000 1,924 1.29 1,924 -
CTCI (Thailand)
Co., Ltd.
Common Stock CHIYODA (Thailand) Co. Ltd. - Financial assets at fair value through
other comprehensive income-non-
current
3,600 345 9.00 345 -
Crown Asia-2
Investment Limited
Common Stock CTCI Corp. The Company Financial assets at fair value through
other comprehensive income-non-
current
500 20 - 20 -
CTCI Advanced
System Inc.
Common Stock Taiwan Cement Corp. - Financial assets at fair value through
other comprehensive income-current
972,277 41,468 - 41,468 -
ECOVE
Environment Corp.
Common Stock Taiwan Cement Corp. - Financial assets at fair value through
other comprehensive income-current
505,902 21,577 - 21,577 -
ECOVE
Environment Corp.
Common Stock TeamWIN Opto-Electronics
Co., Ltd.
- Financial assets at fair value through
other comprehensive income-non-
current
150,000 475 2.46 475 -
Table 3 Page 2
Type Name
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market value
Footnote
(Note 4)Securities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Marketable Securities (Note 1) As of June 30, 2020
ECOVE
Environment Corp.
Common Stock Eastern Pacific Energy Sdn. Bhd. - Financial assets at fair value through
other comprehensive income-non-
current
10,000 68$ 10.00 68$ -
ECOVE
Environment Corp.
Fund Prudential Financial Money Market Fund - Financial assets at fair value through
profit or loss-current
5,535,149 88,135 - 88,135 -
ECOVE
Environment Corp.
Fund FSITC Taiwan Money Market - Financial assets at fair value through
profit or loss-current
12,997,248 200,195 - 200,195 -
ECOVE
Environmental Services
Corp.
Common Stock Taiwan Cement Corp. - Financial assets at fair value through
other comprehensive income-current
1,339,745 57,140 - 57,140 -
ECOVE
Environmental Services
Corp.
Common Stock CTCI Corp. The Company Financial assets at fair value through
other comprehensive income-current
1,028 41 - 41 -
ECOVE
Environmental Services
Corp.
Fund Taishin 1699 Money Market Fund - Financial assets at fair value through
profit or loss-current
18,375,694 250,262 - 250,262 -
ECOVE
Environmental Services
Corp.
Fund Jih Sun Money Market Fund - Financial assets at fair value through
profit or loss-current
17,451,304 260,326 - 260,326 -
ECOVE Wujih
Energy Corp.
Common Stock Taiwan Cement Corp. - Financial assets at fair value through
other comprehensive income-current
508,845 21,702 - 21,702 -
ECOVE Wujih
Energy Corp.
Fund FSITC Taiwan Money Market - Financial assets at fair value through
profit or loss-current
15,142,341 233,236 - 233,236 -
ECOVE Wujih
Energy Corp.
Fund Taishin 1699 Money Market Fund - Financial assets at fair value through
profit or loss-current
12,276,364 167,194 - 167,194 -
ECOVE Waste
Management Corp.
Common Stock Taiwan Cement Corp. - Financial asset at fair value through
other comprehensive income-current
512,411 21,854 - 21,854 -
ECOVE Waste
Management Corp.
Fund FSITC Taiwan Money Market - Financial assets at fair value through
profit or loss-current
5,779,230 89,017 - 89,017 -
ECOVE Waste
Management Corp.
Fund Taishin 1699 Money Market Fund - Financial assets at fair value through
profit or loss-current
1,468,957 20,006 - 20,006 -
ECOVE Waste
Management Corp.
Fund Jih Sun Money Market Fund - Financial assets at fair value through
profit or loss-current
7,249,583 108,144 - 108,144 -
ECOVE Waste
Management Corp.
Fund Franklin Templeton Sinoam Money Market Fund - Financial assets at fair value through
profit or loss-current
3,740,998 38,930 - 38,930 -
ECOVE Miaoli Energy
Corporation
Fund FSITC Taiwan Money Market - Financial assets at fair value through
profit or loss-current
4,937,030 76,045 - 76,045 -
ECOVE Miaoli Energy
Corporation
Fund Taishin 1699 Money Market Fund - Financial assets at fair value through
profit or loss-current
8,786,141 119,660 - 119,660 -
ECOVE Miaoli Energy
Corporation
Fund Franklin Templeton Sinoam Money Market Fund - Financial assets at fair value through
profit or loss-current
288,525 3,002 - 3,002 -
Yuan Ding Resources
Management Corp.
Fund Jih Sun Money Market Fund - Financial assets at fair value through
profit or loss-current
2,524,271 37,655 - 37,655 -
Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities in accordance with IFRS 9, ‘Financial instruments’.
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortized cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.
Table 3 Page 3
Number of
shares (thousands) Amount
Number of
shares (thousands) Amount
Number of
shares (thousands) Selling price Book value
Gain (loss) on
disposal
Number of shares
(thousands) Amount
CTCI Corp. Taishin 1699 Money
Market Fund
Financial assets at fair
value through profit or
loss-current
- - - $ - 153,560 $ 2,090,000 43,353 $ 590,018 $ 589,874 $ 144 110,207 $ 1,500,126
CTCI Corp. Capital Money
Market Fund
Financial assets at fair
value through profit or
loss-current
- - - - 33,886 550,000 20,943 340,000 339,915 85 12,943 210,085
CTCI Corp. Ever Victory Global
Limited Common
Stock
Financial assets at fair
value through other
comprehensive income-
non-current
- - 13,181 408,108 16,624 504,206 - - - - 29,805 912,314
ECOVE
Environmental Services
Corp.
Jih Sun Money
Market Fund
Financial assets at fair
value through profit or
loss-current
- - - - 22,824 340,000 5,373 80,050 80,000 50 17,451 260,000
ECOVE
Environmental Services
Corp.
Taishin 1699 Money
Market Fund
Financial assets at fair
value through profit or
loss-current
- - - - 36,026 490,000 17,650 240,189 239,939 250 18,376 250,061
ECOVE Wujih
Energy Corp.
Taishin 1699 Money
Market Fund
Financial assets at fair
value through profit or
loss-current
- - - - 23,752 323,000 11,475 156,128 155,975 153 12,277 167,025
ECOVE Waste
Management Corp.
Jih Sun Money
Market Fund
Financial assets at fair
value through profit or
loss-current
- - - - 22,094 329,000 14,844 221,125 220,991 134 7,250 108,009
CTCI Resources
Engineering Inc.
Taishin 1699 Money
Market Fund
Financial assets at fair
value through profit or
loss-current
- - 10,920 148,198 13,307 181,000 24,227 329,198 329,551 ( 353) - -
Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.
Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more.
CTCI Corporation and its subsidiaries
Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital
For the six-month period ended June 30, 2020
Table 4 Expressed in thousands of NTD
(Except as otherwise indicated)
Addition
(Note 3)
Balance as at
June 30, 2020
Investor
Marketable
securities
(Note 1)
General
ledger account
Counterparty
(Note 2)
Relationship with
the investor
(Note 2)
Balance as at
January 1, 2020
Disposal
(Note 3)
Table 4 Page 1
Purchases (sales) Amount
Percentage of total
purchases (sales) Credit term Unit price Credit term Balance
Percentage of
total notes/accounts
receivable (payable)
ECOVE Wujih
Energy Corp.
ECOVE Waste
Management Corp.
Second-tier subsidiary (Sales) 222,855)($ 0.90% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
87,568$ 1.43% -
ECOVE Environmental
Services Corp.
ECOVE Waste
Management Corp.
Second-tier subsidiary (Sales) 324,936)( 1.32% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
110,982 1.81% -
CTCI Corp. CTCI Overseas
Co., Ltd.
Subsidiary (Sales) 115,774)( 0.47% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
8,305 0.14% -
CTCI Corp. EVER ECOVE Corp. Associate (Sales) 632,640)( 2.56% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
190,419 3.10% -
CTCI Corp. HDEC-CTCI (Linhai)
Corp.
Associate (Sales) 278,903)( 1.13% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
321 0.01% -
CTCI Machinery Corp. CTCI Corp. The Company (Sales) 259,411)( 1.05% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
40,280 0.39% -
CTCI Advanced
System Inc.
CTCI Corp. The Company (Sales) 101,201)( 0.41% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
62,793 0.61% -
CTCI Resources
Engineering Inc.
CTCI Development Corp. Subsidiary (Sales) 190,803)( 0.77% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
80,638 0.78% -
ECOVE Waste
Management Corp.
ECOVE Wujih
Energy Corp.
Second-tier subsidiary Purchases 222,855 0.98% 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
87,568)( 0.85% )( -
ECOVE Waste
Management Corp.
ECOVE Environmental
Services Corp.
Second-tier subsidiary Purchases 324,936 1.42% 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
110,982)( 1.07% )( -
CTCI Overseas Co., Ltd. CTCI Corp. The Company Purchases 115,774 0.51% 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
8,305)( 0.08% )( -
CTCI Corp. CTCI Machinery Corp. Subsidiary Purchases 259,411 1.14% 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
40,280)( 0.39% )( -
CTCI Corp. CTCI Advanced
System Inc.
The Company Purchases 101,201 0.44% 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
62,793)( 0.61% )( -
CTCI Development Corp. CTCI Resources
Engineering Inc.
Subsidiary Purchases 190,803 0.84% 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
80,638)( 0.78% )( -
CTCI Corporation and its subsidiaries
Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more
For the six-month period ended June 30, 2020
Table 5 Expressed in thousands of NTD
(Except as otherwise indicated)
FootnotePurchaser/seller Counterparty
Relationship with the
counterparty
Transaction
Differences in transaction terms
compared to third party
transaction Notes/accounts receivable (payable)
Table 5 Page 1
Table 6
Amount Action taken
CTCI Corp. CTCI Engineering &
Construction Sdn. Bhd.
Subsidiary 296,600$ Note -$ - -$ -$
CTCI Corp. CTCI Machinery Corp. Subsidiary 600,000 Note - - - -
CTCI Corp. CCJV P1 Engineering &
Construction Sdn. Bhd.
Subsidiary 1,215,467 Note - - - -
CTCI Corp. CTCI Smart
Engineering Corp.
Subsidiary 500,000 Note - - - -
CTCI Corp. CTCI (Thailand) Co., Ltd. Subsidiary 912,475 Note - - - -
ECOVE Environmental
Services Corp.
ECOVE Waste Management Corp. Second-tier subsidiary 110,982 1.53 - - - -
ECOVE Environment Corp. ECOVE Solar Energy Corp. Second-tier subsidiary 252,217 Note - - - -
CTCI Corp. EVER ECOVE Corp. Associate 190,419 8.37 - - - -
CTCI Engineering &
Construction Sdn. Bhd.
MIE Industrial Sdn. Bhd. Associate 722,222 0.07 - - - -
Note:Receivables arise from lending capital and personnel's transfer.
CTCI Corporation and its subsidiaries
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more
June 30, 2020
Expressed in thousands of NTD
(Except as otherwise indicated)
Amount collected
subsequent to the
balance sheet date
Allowance for
doubtful accounts Creditor Counterparty
Relationship
with the counterparty
Balance as at
June 30, 2020 Turnover rate
Overdue receivables
Table 6 Page 1
General ledger account Amount Transaction terms
Percentage of consolidated total
operating revenues or total assets
(Note 3)
0 CTCI Corp. CTCI Overseas Co., Ltd. 1 Sales revenue 115,774$ Negotiated by
both parties
0.47%
1 ECOVE Environmental
Services Corp.
ECOVE Waste Management Corp. 3 Sales revenue 324,936 Negotiated by
both parties
1.32%
2 ECOVE Wujih Energy Corp. ECOVE Waste Management Corp. 3 Sales revenue 222,855 Negotiated by
both parties
0.90%
3 CTCI Machinery Corp. CTCI Corp. 2 Sales revenue 259,411 Negotiated by
both parties
1.05%
4 CTCI Advanced System Inc. CTCI Corp. 2 Sales revenue 101,201 Negotiated by
both parties
0.41%
5 CTCI Resources Engineering Inc. CTCI Development Corp. 2 Sales revenue 190,803 Negotiated by
both parties
0.77%
1 ECOVE Environmental
Services Corp.
ECOVE Waste Management Corp. 3 Accounts receivable 110,982 Negotiated by
both parties
0.16%
0 CTCI Corp. CTCI Engineering & Construction Sdn. Bhd. 1 Other receivables 296,600 Negotiated by
both parties
0.42%
0 CTCI Corp. CTCI Machinery Corp. 1 Other receivables 600,000 Negotiated by
both parties
0.86%
0 CTCI Corp. CCJV P1 Engineering & Construction Sdn. Bhd. 1 Other receivables 1,215,467 Negotiated by
both parties
1.74%
0 CTCI Corp. CTCI Smart Engineering Corp. 1 Other receivables 500,000 Negotiated by
both parties
0.72%
0 CTCI Corp. CTCI (Thailand) Co., Ltd. 1 Other receivables 912,475 Negotiated by
both parties
1.31%
6 ECOVE Environment Corp. ECOVE Solar Energy Corp. 3 Other receivables 252,217 Negotiated by
both parties
0.36%
0 CTCI Corp. CTCI Overseas (BVI) Co. and its subsidiaries. 1 Advance
construction receipt
23,082,517 Negotiated by
both parties
33.06%
3 CTCI Machinery Corp. CTCI Corp. 2 Advance
construction receipt
2,031,650 Negotiated by
both parties
2.91%
5 CTCI Resources Engineering Inc. CTCI Corp. 2 Advance
construction receipt
534,033 Negotiated by
both parties
0.76%
7 CTCI (Thailand ) Co., Ltd. CTCI Corp. 2 Advance
construction receipt
635,210 Negotiated by
both parties
0.91%
0 CTCI Corp. CTCI Development Corp. 1 Refundable deposits 120,959 Negotiated by
both parties
0.17%
CTCI Corporation and its subsidiaries
Significant inter-company transactions during the reporting period
For the six-month period ended June 30, 2020
Table 7 Expressed in thousands of NTD
(Except as otherwise indicated)
Number
(Note 1) Company name Counterparty
Relationship
(Note 2)
Transaction
Table 7 Page 1
General ledger account Amount Transaction terms
Percentage of consolidated total
operating revenues or total assets
(Note 3)
Number
(Note 1) Company name Counterparty
Relationship
(Note 2)
Transaction
0 CTCI Corp. CTCI Americas, Inc. 1 Guarantee 1,353,475$ Not applicable Not applicable
0 CTCI Corp. CTCI Engineering & Construction Sdn. Bhd. 1 Guarantee 2,016,880 Not applicable Not applicable
0 CTCI Corp. CINDA Engineering & Construction Pvt. Ltd. 1 Guarantee 3,432,561 Not applicable Not applicable
0 CTCI Corp. CTCI Arabia Ltd. 1 Guarantee 3,425,730 Not applicable Not applicable
0 CTCI Corp. CTCI Singapore Pte. Ltd. 1 Guarantee 3,395,639 Not applicable Not applicable
0 CTCI Corp. CTCI Overseas Co., Ltd. 1 Guarantee 4,236,405 Not applicable Not applicable
0 CTCI Corp. CTCI Machinery Corp. 1 Guarantee 12,221,058 Not applicable Not applicable
0 CTCI Corp. CTCI Shanghai Co., Ltd. 1 Guarantee 964,124 Not applicable Not applicable
0 CTCI Corp. CTCI Beijing Co., Ltd. 1 Guarantee 1,291,778 Not applicable Not applicable
0 CTCI Corp. CCJV P1 Engineering & Construction Sdn. Bhd. 1 Guarantee 163,130 Not applicable Not applicable
0 CTCI Corp. CTCI Smart Engineering Corp. 1 Guarantee 1,657,806 Not applicable Not applicable
0 CTCI Corp. CTCI (Thailand) Co., Ltd. 1 Guarantee 2,903,871 Not applicable Not applicable
0 CTCI Corp. CTCI-HDEC (Chungli) Corp. 1 Guarantee 102,000 Not applicable Not applicable
0 CTCI Corp. CIPEC Construction Inc. 1 Guarantee 547,451 Not applicable Not applicable
0 CTCI Corp. CTCI Malaysia Sdn. Bhd. 1 Guarantee 711,840 Not applicable Not applicable
9 CTCI Chemical Corp. CTCI Machinery Corp. 3 Guarantee 532,830 Not applicable Not applicable
5 CTCI Resources Engineering Inc. CTCI Smart Engineering Corp. 3 Guarantee 267,102 Not applicable Not applicable
6 ECOVE Environment Corp. ECOVE South Corp. Ltd. 3 Guarantee 150,000 Not applicable Not applicable
6 ECOVE Environment Corp. ECOVE Solar Power Corp. 3 Guarantee 417,000 Not applicable Not applicable
6 ECOVE Environment Corp. ECOVE Solar Energy Corp. 3 Guarantee 2,070,725 Not applicable Not applicable
6 ECOVE Environment Corp. ECOVE Solvent Recycling Corp. 3 Guarantee 157,600 Not applicable Not applicable
10 ECOVE Solar Energy Corp. ECOVE Solar Power Corp. 3 Guarantee 757,076 Not applicable Not applicable
Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between
subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;
for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Table 7 Page 2
Balance as at
June 30, 2020
Balance as at
December 31,
2019 Number of shares Ownership (%) Book value
CTCI Corp. CTCI Smart Engineering
Corp.
Taiwan Design, management,
and building of nuclear
power, thermal power,
fire pumped storage
power generation and
others related to
engineering
$ 456,251 $ 456,251 59,098,624 97.09 ($ 317,160) ($ 146,618) ($ 142,352) A subsidiary
CTCI Corp. CTCI Resources
Engineering Inc.
Taiwan Engineering technical service - 262,649 - - - 56,825 18,243 A subsidiary
CTCI Corp. CTCI Advanced
Systems Inc.
Taiwan Systems planning, design,
integration, and
engineering for various
IT systems, etc.
44,409 44,409 11,444,842 48.72 101,329 71,735 34,948 A subsidiary
CTCI Corp. CTCI Development Corp. Taiwan Real estate and leasing business 1,870,000 1,870,000 198,324,591 100.00 2,906,353 63,008 66,818 A subsidiary
CTCI Corp. CTCI Investment Corp. Taiwan General investment 2,072,000 2,072,000 207,200,000 100.00 896,596 ( 3,060) ( 636) A subsidiary
CTCI Corp. ECOVE Environment
Corp.
Taiwan General investment 938,889 938,889 38,457,105 57.31 2,668,087 405,689 231,965 A subsidiary
CTCI Corp. CTCI (Thailand)
Co., Ltd.
Thailand Design and building of
petrochemical plant
116,894 116,894 1,249,500 49.00 ( 326,844) 157,565 77,207 A subsidiary
CTCI Corp. CTCI Machinery Corp. Taiwan Secondary processing
of steel, piping, heat
treatment, manufacture
of pollution control
equipment and nondestructive
testing, etc.
293,800 293,800 20,000,000 100.00 602,032 52,553 52,553 A subsidiary
CTCI Corp. CTCI Arabia Ltd. Arabia Construction and
maintenance of refinery,
storage tanks and
chemical plant
23,312 23,312 500 50.00 ( 585,496) ( 46,365) ( 23,183) A subsidiary
CTCI Corporation and its subsidiaries
Information on investees (not including investees in Mainland China)
For the six-month period ended June 30, 2020
Table 8 Expressed in thousands of NTD
(Except as otherwise indicated)
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2020
(Note 2(2))
Investment income
(loss) recognized by
the Company for the
six-month period
ended June 30, 2020
(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2020
Table 8 Page 1
Balance as at
June 30, 2020
Balance as at
December 31,
2019 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2020
(Note 2(2))
Investment income
(loss) recognized by
the Company for the
six-month period
ended June 30, 2020
(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2020
CTCI Corp. Sinogal-Waste Services
Corp.
Macao Management of waste
recycling site and maintenance
of related mechanical and
equipment, etc.
$ 4,958 $ 4,958 - 30.00 $ 30,434 $ 80,011 $ 24,003 A subsidiary
CTCI Corp. CTCI Singapore Pte. Ltd. Singapore Investment and planning of
related engineering
152,254 152,254 5,100,000 100.00 ( 1,114,936) ( 65,500) ( 65,500) A subsidiary
CTCI Corp. CTCI Overseas
(BVI) Corp.
BVI Investment and planning of
related engineering
308,554 308,554 6,740,000 100.00 2,140,683 173,979 173,979 A subsidiary
CTCI Corp. CTCI Engineering &
Construction Sdn.Bhd.
Malaysia Investment and planning of
related engineering
4,118 4,118 450,000 60.00 63,453 ( 100,748) ( 60,449) A subsidiary
CTCI Corp. CTCI CMCE JV Sdn. Bhd Malaysia Construction planning 2,759 2,759 382,500 51.00 ( 47,623) ( 4,643) ( 2,368) A subsidiary
CTCI Corp. CTCI Americas, Inc. USA To extend foreign business,
the Group strengthen the
collaborative relationship with
local business owners and
suppliers, developing adequate
potential suppliers, and help
them to operate projects,
purchase and other related
businesses
3,217 3,217 100,000 100.00 41,679 53,167 53,167 A subsidiary
CTCI Corp. CCJV P1 Engineering &
Construction Sdn. Bhd.
Malaysia Construction planning 2,259 2,259 247,500 99.00 ( 551,787) ( 109,765) ( 108,667) A subsidiary
CTCI Corp. CTCI-HDEC (Chungli) Corp. Taiwan Sewerage System BOT
Project
255,000 255,000 25,500,000 51.00 242,040 ( 221) ( 113) A subsidiary
CTCI Corp. PT CTCI International
Indonesia
Indonesia Engineering planning as well as
procurement and construction
76,167 - 341,700,000 67.00 70,812 ( 1,409) ( 944) A subsidiary
CTCI Corp. Blue Whale Water
Technology Co., Ltd.
Taiwan Wastewater Reclamation Unit
BTO Project
347,900 347,900 36,260,000 49.00 408,061 66,635 32,651 An investee
under equity
methodCTCI Corp. Pan Asia Corp. Taiwan Input of foreign labor
and technologies,
technical cooperation
with foreign construction
business, and construction of
engineering construction, etc.
35,826 35,826 19,639,509 17.16 202,299 34,091 5,850 An investee
under equity
method
Table 8 Page 2
Balance as at
June 30, 2020
Balance as at
December 31,
2019 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2020
(Note 2(2))
Investment income
(loss) recognized by
the Company for the
six-month period
ended June 30, 2020
(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2020
CTCI Corp. EVER ECOVE Corp. Taiwan Waste service, waste clear and
steam power cogeneration
$ 250,000 $ 250,000 25,000,000 25.00 $ 240,557 ($ 10,057) ($ 2,514) An investee
under equity
method
CTCI Corp. HDEC-CTCI (Linhai)
Corp.
Taiwan Reclaimed water operators 202,500 202,500 20,250,000 45.00 228,913 40,156 18,070 An investee
under equity
method
$ 7,899,482 $ 382,728
CTCI Development
Corp.
CTCI Chemical Corp. Taiwan Manufacture, wholesale,
and retail of industrial
chemicals
$ 13,522 $ 13,522 480,661 6.77 $ 18,284 $ 26,140 $ 1,770 A second-tier
subsidiary
CTCI Development
Corp.
ECOVE Environment Corp. Taiwan General investment 11,270 11,270 243,918 0.36 19,595 405,689 1,486 A subsidiary
CTCI Development
Corp.
CTCI Resources
Engineering Inc.
Taiwan Engineering technical service 23 23 1,388 0.01 24 56,577 3 A subsidiary
CTCI Development
Corp.
Crown Asia-2
Investment Limited
Taiwan General investment 2,531 2,531 25,000 100.00 441 ( 30) ( 30) A second-tier
subsidiary
CTCI Investment
Corp.
CTCI Chemical Corp. Taiwan Manufacture, wholesale,
and retail of industrial
chemicals
32,153 32,153 1,657,207 23.34 63,038 26,140 6,101 A second-tier
subsidiary
CTCI Investment
Corp.
ECOVE Environment Corp. Taiwan General investment 1,374 1,374 32,132 0.05 2,581 405,689 196 A subsidiary
CTCI Investment
Corp.
CTCI Smart Engineering
Corp.
Taiwan Design, management, and
building of nuclear power,
thermal power, fire pumped
storage power generation and
others related to engineering
11 11 1,000 0.002 ( 3) ( 146,618) - A subsidiary
CTCI Investment
Corp.
MIE Industrial
Sdn. Bhd.
Malaysia Equipment & Instrument,
Procurement & Construction &
Panel
139,885 139,885 10,500,000 21.00 255,436 ( 27,817) ( 3,189) An investee
under equity
method
CTCI Machinery
Corp.
Boretech Resource
Recovery Engineering
Co., Ltd. (Cayman)
Cayman
Islands
Share holding and
investment
154,744 154,744 6,666,667 10.00 169,533 153,250 11,451 An investee
under equity
method
ECOVE Environment
Corp.
ECOVE Waste Management
Corp.
Taiwan International trade and
environmental service of
waste disposal, equipment
installation and mechanical
installation, etc.
20,000 20,000 2,000,000 100.00 79,665 26,700 26,700 A second-tier
subsidiary
ECOVE Environment
Corp.
ECOVE Wujih Energy Corp. Taiwan Environmental service of
waste disposal device
installation, steam power
cogeneration, etc.
450,435 450,435 30,000,000 100.00 756,552 133,117 133,117 A second-tier
subsidiary
Table 8 Page 3
Balance as at
June 30, 2020
Balance as at
December 31,
2019 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2020
(Note 2(2))
Investment income
(loss) recognized by
the Company for the
six-month period
ended June 30, 2020
(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2020
ECOVE Environment
Corp.
ECOVE Environmental
Services Corp.
Taiwan Management of waste
recycling site and
maintenance
of related mechanical and
equipment, etc.
$ 339,921 $ 339,921 14,065,936 93.15 $ 627,096 $ 156,063 $ 147,376 A second-tier
subsidiary
ECOVE Environment
Corp.
ECOVE Mioali Energy Corp. Taiwan Environmental service of
waste disposal device
installation, steam power
cogeneration, etc.
1,012,483 1,012,483 56,249,000 74.999 861,428 62,190 46,645 A second-tier
subsidiary
ECOVE Environment
Corp.
ECOVE Solar Energy Corp. Taiwan Energy technology service 1,062,348 1,062,348 84,078,782 100.00 1,147,078 39,540 39,540 A second-tier
subsidiary
ECOVE Environment
Corp.
Yuan Ding Resources
Management Corp.
Taiwan Waste service, waste clear
other environmental service,
and environmental pollution
service, etc.
42,696 42,696 4,500,000 100.00 39,375 40 40 A second-tier
subsidiary
ECOVE Environment
Corp.
Boretech Resource
Recovery Engineering
Co., Ltd. (Cayman)
Cayman
Islands
Share holding and
investment
309,489 309,489 13,333,333 20.00 315,653 153,250 21,493 An investee
under equity
method
ECOVE Environment
Corp.
ECOVE Solvent
Recycling Corp.
Taiwan Operating basic chemical
industry and manufacture of
other chemical products
86,480 86,480 8,099,000 89.99 86,771 6,914 6,222 A second-tier
subsidiary
ECOVE Environment
Corp.
EVER ECOVE Corp. Taiwan Waste service, waste clear and
steam power cogeneration
50,000 50,000 5,000,000 5.00 48,111 ( 10,057) ( 503) An investee
under equity
method
ECOVE
Environmental
Services Corp.
CTCI Chemical Corp. Taiwan Manufacture, wholesale,
and retail of industrial
chemicals
24,851 24,851 1,910,241 26.9048 59,517 26,140 7,033 A second-tier
subsidiary
ECOVE
Environmental
Services Corp.
Sinogal-Waste
Services Corp.
Macao Management of waste
recycling site and
maintenance of related
mechanical equipment, etc.
4,964 4,964 - 30.00 30,434 80,011 24,003 A second-tier
subsidiary
ECOVE
Environmental
Services Corp.
ECOVE Mioali
Energy Corp.
Taiwan Environmental service of
waste disposal device
installation, steam power
cogeneration, etc.
13 13 1,000 0.001 15 62,190 - A second-tier
subsidiary
ECOVE
Environmental
Services Corp.
ECOVE Solvent
Recycling Corp.
Taiwan Operating basic chemical
industry and manufacture of
other chemical products
10 10 1,000 0.010 9 6,914 - A second-tier
subsidiary
ECOVE Waste
Management Corp.
ECOVE Environmental
Services Corp.
Taiwan Management of waste
recycling site and
maintenance of related
mechanical equipment, etc.
53 53 1,000 0.01 55 156,063 - A second-tier
subsidiary
Table 8 Page 4
Balance as at
June 30, 2020
Balance as at
December 31,
2019 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2020
(Note 2(2))
Investment income
(loss) recognized by
the Company for the
six-month period
ended June 30, 2020
(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2020
ECOVE Solar
Energy Corp.
ECOVE Solar Power
Corp.
Taiwan Energy technology service $ 230,000 $ 230,000 23,000,000 100.00 $ 265,046 $ 25,896 $ 25,896 A second-tier
subsidiary
ECOVE Solar
Energy Corp.
ECOVE South
Corp. Ltd.
Taiwan Energy technology service 30,500 30,500 3,050,000 100.00 32,407 1,088 1,088 A second-tier
subsidiary
ECOVE Solar
Energy Corp.
G.D. International, LLC. USA Energy technology service 189,197 189,197 - 100.00 382,528 9,505 9,505 A second-tier
subsidiary
G.D International,
LLC.
Lumberton Solar
W2-090, LLC
USA Energy technology service 189,197 189,197 - 100.00 381,802 9,540 9,540 A second-tier
subsidiary
CTCI Overseas
(BVI) Corp.
CTCI Overseas
Co., Ltd.
Hong Kong Investment and planning of
related engineering
276,815 276,815 6,740,000 100.00 2,030,990 173,477 173,477 A second-tier
subsidiary
CTCI Overseas
Co., Ltd.
CTCI Arabia Ltd. Arabia Construction and
maintenance of refinery,
storage tanks and chemical
plant
22,610 22,610 500 50.00 ( 585,496) ( 46,365) ( 23,183) A subsidiary
CTCI Overseas
Co., Ltd.
Universal Engineering
(BVI) Corporation
BVI Investment and planning of
related engineering
1,694 1,694 50,000 100.00 ( 374,140) 80,313 80,313 A second-tier
subsidiary
CTCI Overseas
Co., Ltd.
CIPEC Construction Inc. Philippines Construction and
maintenance of refinery,
storage tanks and
chemical plant
19,590 19,590 327,445 39.93 571 ( 25,911) ( 10,363) A second-tier
subsidiary
CTCI Overseas
Co., Ltd.
CIMAS Engineering
Company
Vietnam Chemical, petrochemical,
feasibility atudy & planning,
engineering design, procurement
& fabrication, erection,
construction & commissioning
95,168 65,079 - 100.00 97,075 2,286 2,269 A second-tier
subsidiary
CTCI Overseas
Co., Ltd.
CTCI Engineering &
Construction Sdn.Bhd.
Malaysia Investment and planning of
related engineering
2,879 2,879 300,000 40.00 42,302 ( 100,748) ( 40,299) A subsidiary
CTCI Overseas
Co., Ltd.
CINDA
Engineering &
Construction
Private Limited
India Chemical, petrochemical,
feasibility atudy & planning,
engineering design, procurement
& fabrication, erection,
construction & commissioning
31,022 31,022 8,000,000 100.00 ( 144,874) ( 48,173) ( 48,173) A second-tier
subsidiary
CTCI Overseas
Co., Ltd.
Sumber Mampu
Sdn. Bhd.
Malaysia Building of related
engineering
95 95 10,000 100.00 173,718 ( 7,592) ( 7,592) A second-tier
subsidiary
Universal Engineering
(BVI) Corporation
Superiority (Thailand)
Co., Ltd.
Thailand Investment and planning of
related engineering
151 151 2,156 49.00 ( 489,683) 79,583 79,583 A second-tier
subsidiary
Superiority (Thailand)
Co., Ltd.
CTCI (Thailand )
Co., Ltd.
Thailand Design and building of
petrochemical plant
12,628 12,628 1,300,500 51.00 ( 419,558) 157,565 84,605 A subsidiary
CTCI Advanced
Systems Inc.
Century Ahead Ltd. Samoa Professional investment
company
25,097 25,097 750,000 100.00 40,911 1,132 1,132 A second-tier
subsidiary
Table 8 Page 5
Balance as at
June 30, 2020
Balance as at
December 31,
2019 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2020
(Note 2(2))
Investment income
(loss) recognized by
the Company for the
six-month period
ended June 30, 2020
(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2020
CTCI Advanced
Systems Inc.
CTCI Resources
Engineering Inc.
Taiwan Engineering technical service $ 742,866 $ - 24,762,252 99.05 $ 361,586 $ 56,825 $ 56,220 A second-tier
subsidiary
CTCI Smart
Engineering Corp.
CTCI Chemical Corp. Taiwan Manufacture, wholesale,
and retail of industrial
chemicals
7,354 7,354 656,360 9.24 19,351 26,140 2,416 A second-tier
subsidiary
CTCI Resources
Engineering Inc.
CTCI Chemical Corp. Taiwan Manufacture, wholesale,
and retail of industrial
chemicals
7,354 7,354 656,360 9.24 19,708 26,140 2,418 A second-tier
subsidiary
CTCI Singapore Pte. Ltd. CTCI Netherlands B.V. Netherlands Engineers and other technical
design and consultancy
11,274 11,274 300,000 100.00 38,861 ( 9,428) ( 9,428) A second-tier
subsidiary
CTCI Engineering &
Construction
Sdn. Bhd.
CTCI Malaysia
Sdn. Bhd.
Malaysia Investment and planning of
related engineering
1,357 1,357 150,000 20.00 60,995 ( 9,451) ( 1,890) A second-tier
subsidiary
CTCI Malaysia Sdn. Bhd. MIE Industrial
Sdn. Bhd.
Malaysia Equipment & Instrument,
Procurement & Construction,
Panel
185,537 185,537 14,000,000 28.00 311,639 ( 27,817) ( 7,789) An investee
under
equity
method
Sumber Mampu Sdn. Bhd. CTCI Malaysia
Sdn. Bhd.
Malaysia Investment and planning of
related engineering
5,428 5,428 600,000 80.00 243,980 ( 9,451) ( 7,561) A second-tier
subsidiary
Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules,
it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.
Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:
(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at June 30, 2020’ should fill orderly in the Company’s (public company’s)
information on investees and every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each
(ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.
(2) The ‘Net profit (loss) of the investee for the six-month period ended June 30, 2020’ column should fill in amount of net profit (loss) of the investee for this period.
(3) The ‘Investment income (loss) recognized by the Company for the six-month period ended June 30, 2020’ column should fill in the Company (public company) recognized investment income (loss)
of its direct subsidiary and recognized investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognized investment income (loss) of its
direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognized by regulations.
Table 8 Page 6
Remitted to
Mainland
China
Remitted
back to Taiwan
CTCI Beijing
Co., Ltd.
Design, survey, construction
and inspection of various
engineering and construction
projects, plants, machinery
and equipment, and
environmental protection
projects
$ 433,473 2 $ 313,998 $ - $ - $ 313,998 $ 219,134 100.00 $ 219,134 $ 2,352,579 $ 295,938 Note 3
CTCI Shanghai
Co., Ltd.
Design, survey, construction and
inspection of various
engineering and construction
projects
592,787 2 - - - - 13,251 100.00 13,251 524,397 23,530 Note 7
CTCI Advanced
Systems
Shanghai Inc.
Computer technology services 22,613 2 22,613 - - 22,613 1,166 48.72 568 39,801 - Note 4
ECOVE
Environment
Consulting Corp.
Technical development, advisory
and service in environmental
field;environmental pollution
control equipment and related
parts wholesale, import and
export, etc.
4,147 1 4,147 - - 4,147 2,809 53.77 1,510 14,525 24,178 -
FuJian Gulie
Petrochemical
Co., Ltd.
Operating in manufacturing and
selling of ethylene and others
30,344,536 2 408,108 504,206 - 912,314 - 1.31 - 912,314 - Note 5
CTCI Trading
Shanghai
Co., Ltd.
General trade 23,748 2 - - - - 3,252 100.00 3,252 29,830 - Note 6
Footnote
Accumulated
amount
of remittance
from Taiwan to
Mainland
China as of
June 30, 2020
Net income of
investee for
the six-month
period ended
June 30, 2020
Investee in
Mainland China Main business activities Paid-in capital
Investment method
(Note 1)
Accumulated
amount of
remittance from
Taiwan to
Mainland
China
as of
January 1,
2020
Ownership
held by
the
Company
(direct or
indirect)
Investment
income (loss)
recognized
by the Company
for the six-
month period
ended June 30,
2020
(Note 2(2)B)
Book value of
investments in
Mainland China
as of June 30,
2020
Accumulated
amount
of investment
income
remitted back to
Taiwan as of
June 30, 2020
Amount remitted from Taiwan
to Mainland China/
Amount remitted back
to Taiwan for the six-month
period ended June 30, 2020
CTCI Corporation and its subsidiaries
Information on investees (in Mainland China)
For the six-month period ended June 30, 2020
Table 9 Expressed in thousands of NTD
(Except as otherwise indicated)
Table 9 Page 1
Company name
Accumulated amount of remittance
from Taiwan to Mainland China
as of June 30, 2020
Investment
amount approved
by the Investment
Commission of
the Ministry of
Economic Affairs
(MOEA)
Ceiling on investments in
Mainland China imposed
by the Investment
Commission of MOEA
CTCI Corp. $ 1,253,072 $ 1,162,689 $ 9,132,151
Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others
Note 2: In the Investment income (loss) recognized by the Company for the six-month period ended June 30, 2020 column:
(1) FuJian Galie Petrochemical Co., Ltd. did not accrue investment income or loss since it was still in preparation.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
A.The financial statements were reviewed and attested by R.O.C. parent company’s CPA.
B. It is an insignificant subsidiary, and its financial report was not reviewed by the independent accountant.
C.Others.
Note 3: Invested by CTCI Overseas Co., Ltd.
Note 4: Invested by Century Ahead Ltd.
Note 5: Invested in Dynamic Ever Investments Limited through Ever Victory Global Limited.
Note 6: Invested by CTCI Shanghai Co., Ltd.
Note 7: Invested by CTCI Beijing Co., Ltd.
Table 9 Page 2
Note 1: (1) The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by
the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. The share capital which was recorded in the financial statements is
different from the actual number of shares issued in dematerialised form because of the different calculation basis.
(2) If the aforementioned data contains shares which were held in trust by the shareholders, the data was disclosed as a separate account of client which was set by the trustee. As for the shareholder who
reports share equity as an insider whose shareholding ratio is greater than 10% in accordance with Securities and Exchange Act, the shareholding ratio include the self-owned shares and shares held in trust,
at the same time, the shareholder who has the power to decide how to allocate the trust assets. For the information on reported share equity of insider, please refer to Market Observation Post System.
CTCI Foundation 60,862,051 - 7.97%
Fubon Life Insurance Co., Ltd. 58,566,000 - 7.67%
CTBC BANK CO., LTD. (CTCI Corporation Employee Stock Ownership Trust) 62,459,645 - 8.18%
CTCI Corporation and its subsidiaries
Major shareholders information
June 30, 2020
Table 10
Name of major shareholders
Shares
Total shares owned (common shares) Total shares owned (preference shares) Ownership percentage
Table 10 Page 1
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