ctci corporation and subsidiaries · ctci corporation and subsidiaries consolidated balance sheets...
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CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
REVIEW REPORT OF INDEPENDENT
ACCOUNTANTS
JUNE 30, 2019 AND 2018
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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
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) (The balance sheets as of June 30, 2019 and 2018 are reviewed, not audited)
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June 30, 2019 December 31, 2018 June 30, 2018 Assets Notes AMOUNT % AMOUNT % AMOUNT %
Current assets
1100 Cash and cash equivalents 6(1) $ 17,027,571 25 $ 15,070,992 20 $ 15,318,991 24
1110 Financial assets at fair value
through profit or loss - current
6(2)
382,122 1 554,638 1 420,043 1
1120 Financial assets at fair value
through other comprehensive
income
6(3)
529,350 1 500,327 1 616,277 1
1136 Financial assets at amortised
cost - current
6(4)
72,903 - 370,331 1 219,509 -
1140 Contract assets - current 6(23) 18,840,920 27 24,823,432 32 21,707,003 35
1150 Notes receivable, net 6(5) 109,921 - 75,006 - 126,932 -
1170 Accounts receivable, net 6(5) 4,714,762 7 9,092,332 12 4,079,928 7
1180 Accounts receivable - related
parties
7
496,773 1 944,071 1 32,013 -
1200 Other receivables 230,637 - 338,477 - 152,303 -
1220 Current income tax assets 150,938 - 134,826 - 107,962 -
130X Inventories 280,426 - 167,345 - 149,645 -
1410 Prepayments 6(6) 5,291,567 8 4,253,895 6 5,129,541 8
1470 Other current assets - - 208,887 - 14,092 -
11XX Total current assets 48,127,890 70 56,534,559 74 48,074,239 76
Non-current assets
1517 Financial assets at fair value
through other comprehensive
income - non-current
6(3)
768,409 1 788,611 1 644,062 1
1550 Investments accounted for
using equity method
6(7)
3,175,468 5 3,680,933 5 3,582,893 6
1600 Property, plant and equipment,
net
6(8) and 8
10,706,079 16 10,432,036 13 6,472,531 10
1755 Right-of-use assets 6(9) 405,955 1 - - - -
1760 Investment property, net 6(10) and 8 805,976 1 808,129 1 810,390 1
1780 Intangible assets 191,347 - 191,198 - 79,301 -
1840 Deferred income tax assets 494,244 1 493,335 1 491,599 1
1900 Other non-current assets 6(11) and 8 3,807,978 5 3,568,532 5 2,788,594 5
15XX Total non-current assets 20,355,456 30 19,962,774 26 14,869,370 24
1XXX Total assets $ 68,483,346 100 $ 76,497,333 100 $ 62,943,609 100
(Continued)
CTCI CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) (The balance sheets as of June 30, 2019 and 2018 are reviewed, not audited)
The accompanying notes are an integral part of these consolidated financial statements.
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June 30, 2019 December 31, 2018 June 30, 2018 Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities 2100 Short-term borrowings 6(12) $ 10,396,242 15 $ 13,414,459 18 $ 8,047,275 13 2110 Short-term notes and bills
payable
250,913 - - - - - 2120 Financial liabilities at fair value
through profit or loss - current 6(2)
4,487 - 548 - - - 2130 Contract liabilities - current 6(23) 14,196,426 21 13,920,198 18 12,509,386 20 2150 Notes payable 22,229 - 18,788 - 5,224 - 2170 Accounts payable 6(13) 9,664,066 14 9,991,262 13 8,610,127 14 2180 Accounts payable - related
parties 7
792,220 1 1,359,712 2 873,722 1 2200 Other payables 6(14) 4,088,570 6 4,692,516 6 4,658,235 7 2230 Current income tax liabilities 343,299 1 371,943 - 417,397 1 2280 Current lease liabilities 7 126,174 - - - - - 2300 Other current liabilities 6(15)(16) 3,229,848 5 7,650,660 10 3,775,258 6 21XX Total current liabilities 43,114,474 63 51,420,086 67 38,896,624 62 Non-current liabilities 2540 Long-term borrowings 6(16) 3,423,573 5 1,423,586 2 1,854,133 3 2570 Deferred income tax liabilities 248,080 - 411,810 1 394,617 - 2580 Non-current lease liabilities 7 252,473 1 - - - - 2600 Other non-current liabilities 6(17) 2,181,152 3 2,615,692 3 2,434,570 4 25XX Total non-current
liabilities
6,105,278 9 4,451,088 6 4,683,320 7 2XXX Total liabilities 49,219,752 72 55,871,174 73 43,579,944 69 Equity attributable to owners of
parent
Share capital 6(20) 3110 Common stock 7,633,100 11 7,632,738 10 7,632,738 12 Capital surplus 6(21) 3200 Capital surplus 3,648,444 5 3,545,053 4 3,465,498 5 Retained earnings 6(22) 3310 Legal reserve 3,741,648 6 3,558,894 5 3,558,894 6 3320 Special reserve 762,377 1 763,794 1 763,794 1 3350 Unappropriated retained
earnings
806,242 1 2,217,619 3 1,229,073 2 Other equity interest 3400 Other equity interest ( 222,449 ) - ( 247,534 ) - ( 203,649 ) - 3500 Treasury stocks 6(20) ( 11,835 ) - ( 11,835 ) - ( 11,835 ) - 31XX Equity attributable to
owners of the parent
16,357,527 24 17,458,729 23 16,434,513 26 36XX Non-controlling interest 4(3) 2,906,067 4 3,167,430 4 2,929,152 5 3XXX Total equity 19,263,594 28 20,626,159 27 19,363,665 31 Significant contingent liabilities
and unrecognised contract
commitments
9
3X2X Total liabilities and equity $ 68,483,346 100 $ 76,497,333 100 $ 62,943,609 100
CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(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
2019 2018 2019 2018
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
4000 Operating revenue 6(23) and 7 $ 13,381,465 100 $ 13,356,165 100 $ 27,093,923 100 $ 27,896,747 100 5000 Operating costs 6(27)(28) and 7 ( 12,587,382 ) ( 94 ) ( 12,532,897 ) ( 94 ) ( 25,261,270 ) ( 93 ) ( 25,892,560 ) ( 93 ) 5900 Gross Profit 794,083 6 823,268 6 1,832,653 7 2,004,187 7 Operating expenses 6(27)(28) 6200 General and administrative expenses ( 395,353 ) ( 3 ) ( 406,630 ) ( 3 ) ( 804,520 ) ( 3 ) ( 842,280 ) ( 3 ) 6300 Research and development expenses ( 30,847 ) - ( 32,882 ) - ( 56,020 ) - ( 61,694 ) - 6000 Total operating expenses ( 426,200 ) ( 3 ) ( 439,512 ) ( 3 ) ( 860,540 ) ( 3 ) ( 903,974 ) ( 3 ) 6900 Operating income 367,883 3 383,756 3 972,113 4 1,100,213 4 Non-operating income and expenses 7010 Other income 6(24) 98,659 1 74,684 - 174,057 1 135,933 - 7020 Other gains and losses 6(25) 142,557 1 285,906 2 170,421 1 155,208 1 7050 Finance costs 6(26) ( 42,518 ) - ( 42,492 ) - ( 124,575 ) ( 1 ) ( 79,181 ) - 7060 Share of loss of associates and joint ventures accounted for under equity method 6(7) ( 59,845 ) ( 1 ) ( 32,307 ) - ( 208,525 ) ( 1 ) ( 17,997 ) - 7000 Total non-operating income and expenses 138,853 1 285,791 2 11,378 - 193,963 1 7900 Profit before income tax 506,736 4 669,547 5 983,491 4 1,294,176 5 7950 Income tax expense 6(29) ( 106,033 ) ( 1 ) ( 124,156 ) ( 1 ) ( 239,121 ) ( 1 ) ( 311,733 ) ( 1 ) 8200 Profit for the period $ 400,703 3 $ 545,391 4 $ 744,370 3 $ 982,443 4
Components of other comprehensive income that will not be reclassified to
profit or loss
8311 Actuarial losses on defined benefit plans $ - - ( $ 19,951 ) - $ - - $ - - 8316 Unrealized gain or loss on valuation of financial assets at fair value through
other comprehensive income
6(3)
11,088 - ( 746 ) - 47,982 - 30,398 - 8320 Share of other comprehensive income of associates and joint ventures accounted
for using equity method
- - 572 - - - 1,079 - 8349 Income tax related to components of other comprehensive income that will not
be reclassified to profit or loss
6(29)
- - 19,379 - - - 19,379 - Components of other comprehensive income that will be reclassified to profit or
loss
8361 Cumulative translation differences of foreign operations ( 35,316 ) - 95,781 1 ( 11,345 ) - 47,228 - 8300 Total other comprehensive (loss) income for the period ( $ 24,228 ) - $ 95,035 1 $ 36,637 - $ 98,084 -
8500 Total comprehensive income for the period $ 376,475 3 $ 640,426 5 $ 781,007 3 $ 1,080,527 4
Profit attributable to: 8610 Owners of the parent $ 272,064 2 $ 408,982 3 $ 493,537 2 $ 727,722 3 8620 Non-controlling interest 128,639 1 136,409 1 250,833 1 254,721 1 Total $ 400,703 3 $ 545,391 4 $ 744,370 3 $ 982,443 4
Comprehensive income attributable to: 8710 Owners of the parent $ 272,752 2 $ 486,156 4 $ 516,255 2 $ 817,376 3 8720 Non-controlling interest 103,723 1 154,270 1 264,752 1 263,151 1 Total $ 376,475 3 $ 640,426 5 $ 781,007 3 $ 1,080,527 4
9750 Basic earnings per share 6(30) $ 0.36 $ 0.54 $ 0.65 $ 0.95
9850 Diluted earnings per share 6(30) $ 0.36 $ 0.54 $ 0.65 $ 0.95
CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(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
Unrealized gain or
loss on available-
for-sale financial
assets
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, 2018 Balance at January 1, 2018 $ 7,632,738 $ 3,395,620 $ 3,278,360 $ 765,904 $ 3,061,699 ( $ 226,282 ) $ - $ 55,828 ( $ 11,835 ) $ 17,952,032 $ 3,088,125 $ 21,040,157 Effect of retrospective application and retrospective restatement 6(22) - - - - 166,327 - ( 47,070 ) ( 55,828 ) - 63,429 - 63,429 Balance at January 1 after adjustments 7,632,738 3,395,620 3,278,360 765,904 3,228,026 ( 226,282 ) ( 47,070 ) - ( 11,835 ) 18,015,461 3,088,125 21,103,586 Profit for the period - - - - 727,722 - - - - 727,722 254,721 982,443 Other comprehensive income - - - - 19,951 43,959 25,744 - - 89,654 8,430 98,084 Total comprehensive income - - - - 747,673 43,959 25,744 - - 817,376 263,151 1,080,527 Appropriations of 2017 earnings 6(22) Legal reserve - - 280,534 - ( 280,534 ) - - - - - - - Special reserve - - - ( 2,110 ) 2,110 - - - - - - - Cash dividends - - - - ( 2,468,202 ) - - - - ( 2,468,202 ) ( 449,021 ) ( 2,917,223 ) Employee stock options exercised by subsidiary 6(21) - 5,315 - - - - - - - 5,315 18,025 23,340 Share-based payment transactions 6(21) - 64,563 - - - - - - - 64,563 647 65,210 Increase in non-controlling interest - - - - - - - - - - 8,225 8,225 Balance at June 30, 2018 $ 7,632,738 $ 3,465,498 $ 3,558,894 $ 763,794 $ 1,229,073 ( $ 182,323 ) ( $ 21,326 ) $ - ( $ 11,835 ) $ 16,434,513 $ 2,929,152 $ 19,363,665
For the six-month period ended June 30, 2019 Balance at January 1, 2018 $ 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 - - - - - ( 7,164 ) 29,882 - - 22,718 13,919 36,637 Total comprehensive income - - - - 493,537 ( 7,164 ) 29,882 - - 516,255 264,752 781,007 Appropriations of 2018 earnings 6(22) 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(20)(21) 362 1,316 - - - - - - - 1,678 - 1,678 Share-based payment transactions 6(21) - 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
CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
For the six-month periods ended June 30
Notes 2019 2018
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CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax $ 983,491 $ 1,294,176 Adjustments Adjustments to reconcile profit (loss) Gain on valuation of financial assets 6(25) ( 56,214 ) ( 26,136 ) Gain on reduction of capital of investments 6(25) ( 5,158 ) ( 64,420 ) Loss (gain) on disposal of property, plant and
equipment 6(25)
1,353 ( 66,798 ) Share of loss of associates and joint ventures
accounted for under equity method 6(7)
208,525 17,997 Depreciation 6(27) 282,881 179,778 Amortization 6(27) 74,638 77,765 Expected credit loss 12(2) 255 18,161 Interest income 6(24) ( 131,825 ) ( 107,931 ) Dividends income 6(23) ( 230 ) - Interest expense 6(26) 124,575 79,181 Compensation costs for employee stock options 6(28) 141,783 65,258 Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss 166,790 356,191 Notes receivable ( 34,915 ) ( 93,782 ) Accounts receivable 4,377,315 1,227,302 Accounts receivable - related parties 447,298 10,346 Contract assets - current 5,982,512 2,052,307 Other receivables 108,907 72,002 Other receivables - related parties - 9,378 Inventories ( 113,081 ) 43,529 Prepayments ( 1,037,672 ) ( 982,128 ) Other current assets 208,887 8,088 Other non-current assets 84,690 115,957 Changes in operating liabilities Notes payable 3,441 1,155 Accounts payable ( 327,196 ) ( 3,268,147 ) Accounts payable - related parties ( 567,492 ) ( 52,988 ) Contract liabilities - current 276,228 ( 1,370,720 ) Other payables ( 931,800 ) ( 936,446 ) Other payables - related parties - ( 20 ) Other current liabilities ( 4,488,308 ) ( 3,715,087 ) Other non-current liabilities ( 363,273 ) ( 309,020 ) Cash inflow (outflow) generated from operations 5,416,405 ( 5,365,052 ) Interest received 130,758 114,732 Dividends received 63,685 72,063 Interest paid ( 126,758 ) ( 77,275 ) Income tax paid ( 386,692 ) ( 415,506 ) Net cash flows from (used in) operating activities 5,097,398 ( 5,671,038 )
(Continued)
CTCI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
For the six-month periods ended June 30
Notes 2019 2018
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 $ 202,556
Proceeds from disposal of financial assets at amortised
cost
297,428 89,693
Increase in investments accounted for under the equity
method
6(7)
- ( 27,500 )
Proceeds from disposal of investments accounted for
using equity method
224,494 -
Acquisition of property, plant and equipment 6(33) ( 2,209,867 ) ( 79,426 )
Proceeds from disposal of property, plant and equipment 2,569 226,388
Increase in prepayments for equipment ( 380,744 ) -
Increase in intangible assets ( 24,110 ) ( 12,826 )
Increase in refundable deposits ( 8,562 ) ( 993 )
Increase in other non-current assets ( 30,240 ) ( 30,583 )
Net cash flows from acquisition of subsidiaries ( 38,749 ) ( 49,440 )
Net cash flows (used in) from investing activities ( 2,128,393 ) 317,869
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term borrowings ( 3,018,217 ) 1,508,258
Increase in short-term notes and bills payable 250,913 -
Increase (decrease) in long-term borrowings 2,067,483 ( 172,200 )
Decrease in lease liabilities 6(9) ( 105,999 ) -
(Decrease) increase in deposits received (recognized in
other non-current liabilities)
( 71,267 ) 19,880
Proceeds from employee stock options exercised 1,678 30,334
Cash dividends paid 6(33) ( 137,017 ) ( 73,092 )
Increase in non-controlling interest - 4,100
Net cash flows (used in) from financing activities ( 1,012,426 ) 1,317,280
Net increase (decrease) in cash and cash equivalents 1,956,579 ( 4,035,889 )
Cash and cash equivalents at beginning of period 15,070,992 19,354,880
Cash and cash equivalents at end of period $ 17,027,571 $ 15,318,991
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CTCI CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2019 AND 2018
(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 AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORISATION
These consolidated financial statements were reported to the Board of Directors on August 2, 2019.
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 2019 are as
follows:
Except for the following, 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 IFRS 9, ‘Prepayment features with negative compensation’ January 1, 2019
IFRS 16, ‘Leases’ January 1, 2019
Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ January 1, 2019
Amendments to IAS 28, ‘Long-term interests in associates and joint ventures’ January 1, 2019
IFRIC 23, ‘Uncertainty over income tax treatments’ January 1, 2019
Annual improvements to IFRSs 2015-2017 cycle January 1, 2019
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IFRS 16, ‘Leases’
A. IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard
requires lessees to recognise a ‘right-of-use asset’ and a lease liability (except for those leases with
terms of 12 months or less and leases of low-value assets). The accounting stays the same for
lessors, which is to classify their leases as either finance leases or operating leases and account for
those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided
by lessors.
B. The Group has elected to apply IFRS 16 by not restating the comparative information (referred
herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as
endorsed by the FSC. Accordingly, the Group increased ‘right-of-use asset’ by $416,416 and
increased ‘lease liability’ by $416,416 with respect to the lease contracts of lessees on January 1,
2019.
C. The Group has used the following practical expedients permitted by the standard at the date of
initial application of IFRS 16:
(a) Reassessment as to whether a contract is, or contains, a lease is not required, instead, the
application of IFRS 16 depends on whether or not the contracts were previously identified as
leases applying IAS 17 and IFRIC 4.
(b) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.
(c) The accounting for operating leases whose period will end before December 31, 2019 as short-
term leases and accordingly, rent expense of $149,657 was recognized in the second quarter
of 2019.
(d) The exclusion of initial direct costs for the measurement of ‘right-of-use asset’.
(e) The use of hindsight in determining the lease term where the contract contains options to
extend or terminate the lease.
D. The Group calculated the present value of lease liabilities by using the weighted average
incremental borrowing interest rate of 0.68%.
E. The Group recognized lease liabilities which had previously been classified as ‘operating leases’
under the principles of IAS 17, ‘Leases’. The reconciliation between operating lease commitments
under IAS 17 measured at the present value of the remaining lease payments, discounted using
the lessee’s incremental borrowing rate and lease liabilities recognized as of January 1, 2019 is as
follows:
Operating lease commitments disclosed by applying IAS 17 as at
December 31, 2018 768,470$
Less: Short-term leases 20,952)(
Add/Less: Adjustments relating to changes in the index or rate
affecting variable lease payments 331,102)(
Total lease contracts amount recognised as lease liabilities by
applying IFRS 16 on January 1, 2019416,416$
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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, 2018, 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, 2018.
(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.
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 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, 2021
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(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 IFRS, 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,
2018.
B. Subsidiaries included in the consolidated financial statements:
Name of Investor Name of SubsidiaryMain Business
ActivitiesJune 30, 2019
December 31,
2018June 30, 2018 Description
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 2,3
CTCI Corp. CTCI Investment
Corp.
Investments 100.00 100.00 100.00 Note 3
CTCI Corp.
CTCI Investment
Corp.
CTCI Smart
Engineering Corp.
Planning and
design of
construction
projects
97.09 97.09 97.09 Note 3
CTCI Corp.
CTCI Development
Corp.
CTCI Resources
Engineering Inc.
Planning, design
and
supervision of
mechanical and
electrical
engineering
projects
99.06 99.06 99.06 Note 3
CTCI Corp. CTCI Americas,
Inc.
Business
development and
related engineering
services and
planning
100.00 100.00 100.00 Note 3
CTCI Corp. CTCI Singapore Pte.
Ltd.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
Ownership (%)
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Name of Investor Name of SubsidiaryMain Business
ActivitiesJune 30, 2019
December 31,
2018June 30, 2018 Description
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 3
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 98.00 98.00 Note 8
ECOVE Environment
Services Corp.
- 2.00 2.00
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
ECOVE Environment
Corp.
Yuan Ding
Resources
Management Corp.
Environmental
engineering
100.00 60.00 60.00
ECOVE Waste
Management Corp.
- 40.00 40.00
ECOVE Environment
Services Corp.
ECOVE
Environment
Consulting Corp.
Environmental
engineering
100.00 100.00 100.00 Note 3
CTCI Corp.
ECOVE Environment
Services Corp.
SINOGAL-Waste
Services CO., Ltd.
Environmental
engineering
60.00 60.00 60.00 Note 3
CTCI Corp. CTCI Overseas
(BVI) Corp.
Investments 100.00 100.00 100.00 Note 3
CTCI Overseas (BVI)
Corp.
CTCI Overseas Co.,
Ltd.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
Ownership (%)
Note 3, 8
~15~
Name of Investor Name of SubsidiaryMain Business
ActivitiesJune 30, 2019
December 31,
2018June 30, 2018 Description
CTCI Overseas Co.,
Ltd.
CTCI Beijing Co.,
Ltd.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
CTCI Overseas Co.,
Ltd.
CIMAS Engineering
Company
Planning and
design of
construction
projects
83.00 50.00 50.00 Note 3,7
CTCI Overseas Co.,
Ltd.
Universal
Engineering (BVI)
Corp.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
CTCI Overseas Co.,
Ltd.
CIPEC Construction
Company Inc.
Planning and
design of
construction
projects
39.89 39.89 39.89 Note 1,3
CTCI Overseas Co.,
Ltd.
CINDA Engineering
& Construction
Private Limited
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
CTCI Corp.
CTCI Overseas Co.,
Ltd.
CTCI Arabia Ltd. Design and
construction of
chemical factories
100.00 100.00 100.00 Note 3
CTCI Smart
Engineering
Corp.
CTCI Overseas Co.,
Ltd.
CTCI Shanghai Co.,
Ltd.
Consulting services
for construction
projects
- - 100.00 Note 3,6
CTCI Beijing Co.,
Ltd.
CTCI Shanghai Co.,
Ltd.
Consulting services
for construction
projects
100.00 100.00 - Note 3,6
CTCI Shanghai Co.,
Ltd.
CTCI Trading
Shanghai Co., Ltd.
General trade 100.00 100.00 100.00 Note 3,6
CTCI Corp.
CTCI Overseas Co.,
Ltd.
CTCI Engineering
& Construction
Sdn. Bhd.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
CTCI Overseas Co.,
Ltd.
Sumber Mampu
Sdn. Bhd.
Investments 10.00 10.00 10.00 Note 1, 3
Ownership (%)
~16~
Name of Investor Name of SubsidiaryMain Business
ActivitiesJune 30, 2019
December 31,
2018June 30, 2018 Description
Sumber Mampu Sdn.
Bhd.
CTCI Engineering &
Construction Sdn.
Bhd.
CTCI Corp.
Superiority
(Thailand) Co., Ltd.
CTCI (Thailand)
Co., Ltd.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
CTCI Advanced
Systems Inc.
Century Ahead Ltd. Investments 100.00 100.00 100.00 Note 3
Century Ahead Ltd. CTCI Advanced
Systems Shanghai
Inc.
Computer skills
services
100.00 100.00 100.00 Note 3
Universal
Engineering (BVI)
Corp.
Superiority
(Thailand) Co., Ltd.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
CTCI Corp. CTCI Machinery
Corp.
Planning and
design of
construction
projects
100.00 100.00 100.00 Note 3
CTCI Corp. CCJV P1
Engineering &
Construction Sdn.
Bhd.
Planning of
construction
projects
99.00 99.00 99.00 Note 3
CTCI Development
Corporation
Crown Asia-2
Investment Limited
Investments 100.00 100.00 100.00 Note 3
CTCI Singapore Pte.
Ltd.
CTCI Netherlands
B.V.
Engineers and
other technical
design and
consultancy
100.00 100.00 100.00 Note 3
CTCI Corp. CTCI-HDEC
(Chungli)
Corporation.
Waste water
treatment
Sewerage System
51.00 51.00 51.00 Note 3
CTCI Corp. CTCI CMCE JV
SDN. BHD.
Planning and
design of
construction
projects
51.00 51.00 51.00 Note 3
ECOVE Environment
Corp.
ECOVE Environment
Services Corp.
ECOVE Solvent
Recycling
Corporation
Environmental
engineering
90.00 90.00 90.00 Note 3,4
ECOVE Environment
Corp.
ECOVE Solar
Energy Corporation
Electric Power
Supply
100.00 100.00 50.00 Note 5
CTCI MALAYSIA
Sdn. Bhd.
Planning and
design of
construction
projects
Note 3
Ownership (%)
100.00 100.00 100.00
~17~
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: On December 12, 2018, the Company's Board of Directors decided to increase its share
in the subsidiary, CTCI Development Corp., with a total investment amount of
$1,800,000. As of June 30, 2019 and December 31, 2018, the Company has invested
$180,000.
Note 3: The financial statements of the entity as of and for the six-month periods ended June 30,
2019 and 2018 were not reviewed by the independent accountants as the entity did not
meet the definition of significant subsidiary.
Note 4: In May 2018, the subsidiaries, ECOVE Environment Corp. and ECOVE Environment
Services Corp., acquired ECOVE Solvent Recycling Corp. by cash, which became a
subsidiary whose 90% equity was indirectly held by the Company. The acquiree was
consolidated into the financial statements effective from the date of acquisition.
Note 5: The subsidiary, ECOVE Environment Corp.,which originally held 50% of the equity of
ECOVE Solar Energy Corporation, acquired the remaining shares of ECOVE Solar
Energy Corporation by cash in September 2018, and became a subsidiary whose 100%
equity was indirectly held by the Group. The acquiree was consolidated into the financial
statements effective from the date of acquisition.
Note 6: In August 2018, the subsidiary, CTCI Beijing Co., Ltd, acquired a 100% equity interest
of the subsidiaries, CTCI Smart Engineering Corp. and CTCI Overseas Co., Ltd., by cash
and shares.
Note 7: In March 2019, CTCI Overseas Co., Ltd. purchased 646 thousand shares of CIMAS
Engineering Company and obtained 33% of the shares.
Note 8: In May 2019, the Group implemented an organisational restructuring. ECOVE
Environment Services Corp. and ECOVE Waste Management Corp. sold its originally
held 2% equity interest of ECOVE Wujih Energy Corp. and 40% equity interest of Yuan
Ding Resources Management Corp. to ECOVE Environment Corp.
Name of Investor Name of SubsidiaryMain Business
ActivitiesJune 30, 2019
December 31,
2018June 30, 2018 Description
ECOVE Solar Energy
Corporation
ECOVE Solar
Power Corporation
Electric Power
Supply
100.00 100.00 - Note 3,5
ECOVE Solar Energy
Corporation
ECOVE Central
Corporation Ltd.
Electric Power
Supply
100.00 100.00 - Note 3,5
ECOVE Solar Energy
Corporation
ECOVE South
Corporation Ltd.
Electric Power
Supply
100.00 100.00 - Note 3,5
ECOVE Solar Energy
Corporation
G.D International,
LLC.
Electric Power
Supply
100.00 100.00 - Note 3,5
G.D International,
LLC.
Lumberton Solar
W2-090, LCC.
Electric Power
Supply
100.00 100.00 - Note 3,5
Ownership (%)
~18~
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, 2019, December 31, 2018 and June 30, 2018, the non-controlling interest amounted
to $2,906,067, $3,167,430 and $2,929,152, respectively. The information on non-controlling
interest and respective subsidiaries is as follows:
Summarized financial information of the subsidiaries:
Balance sheets
Statements of comprehensive income
Name of subsidiary
Principal place
of business Amount Ownership (%) Amount Ownership (%) Amount Ownership (%)
ECOVE Environment
Corp.
Taiwan 2,376,305$ 42.28% 2,571,278$ 42.28% 2,320,042$ 42.28%
Non-controlling interest
June 30, 2019 December 31, 2018 June 30, 2018
June 30, 2019 December 31, 2018 June 30, 2018
Current assets 3,959,024$ 3,574,782$ 4,344,695$
Non-current assets 5,937,924 5,500,925 3,357,416
Current liabilities 2,521,948)( 1,496,920)( 2,201,711)(
Non-current liabilities 2,337,498)( 2,157,428)( 559,658)(
Total net assets 5,037,502$ 5,421,359$ 4,940,742$
ECOVE Environment Corp.
2019 2018
Revenue 1,255,554$ 1,206,742$
Profit before income tax 303,277 320,511
Income tax expense 46,516)( 57,264)(
Profit for the period 256,761 263,247
Other comprehensive income, net of tax 3,453 37,314
Total comprehensive income for the period 260,214$ 300,561$
Comprehensive income attributable
to non-controlling interest 50,246$ 55,247$
Dividends paid to non-controlling interest 184,766$ 127,558$
ECOVE Environment Corp.
For the three-month periods ended June 30,
~19~
Statements of cash flows
(4) Leasing arrangements (lessee)-right-of-use assets/ lease liabilities
Effective 2019
A. Leases are recognizsed as a right-of-use asset and a corresponding lease liability at the date at
which the leased asset is available for use by the Group. For short-term leases or leases of low
value assets, lease payments are recognized as an expense on a straight-line basis over the lease
term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement
date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the
fixed payments, less any lease incentives receivable.
The Group subsequently measures the lease liability at amortised cost using the interest method and
recognizes interest expense over the lease term. The lease liability is remeasured and the amount of
remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the
lease term or lease payments and such changes do not arise from contract modifications.
2019 2018
Revenue 2,539,391$ 2,394,854$
Profit before income tax 604,482 626,722
Income tax expense 103,284)( 142,723)(
Profit for the period 501,198 483,999
Other comprehensive income, net of tax 20,463 17,775
Total comprehensive income for the period 521,661$ 501,774$
Comprehensive income attributable
to non-controlling interest 98,581$ 90,202$
Dividends paid to non-controlling interest 184,766$ 127,558$
ECOVE Environment Corp.
For the six-month periods ended June 30,
2019 2018
Net cash provided by operating activities 538,786$ 802,380$
Net cash used in investing activities 271,186)( 622,591)(
Net cash provided by (used in)
financing activities 255,342 166,037)(
Increase in cash and cash equivalents
for the period 522,942 13,752
Cash and cash equivalents, beginning of period 1,543,162 1,657,955
Cash and cash equivalents, end of period 2,066,104$ 1,671,707$
ECOVE Environment Corp.
For the six-month periods ended June 30,
~20~
C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date.
The right-of-use asset is measured subsequently using the cost model and is depreciated from the
commencement date to the earlier of the end of the asset’s useful life or the end of the lease term.
When the lease liability is remeasured, the amount of remeasurement is recognized as an
adjustment to the right-of-use asset.
(5) Employee benefits
A. Short-term employee benefits
Short-term employee benefits are measured at the undiscounted amount of the benefits expected
to be paid in respect of service rendered by employees in a period and should be recognized as
expense in that period when the employees render service.
B. Pensions
(a) Defined contribution plans
For defined contribution plans, the contributions are recognized as pension expenses when
they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent
of a cash refund or a reduction in the future payments.
(b) Defined benefit plans
i. Net obligation under a defined benefit plan is defined as the present value of an amount
of pension benefits that employees will receive on retirement for their services with the
Group in current period or prior periods. The rate used to discount is determined by using
interest rates of high-quality corporate bonds that are denominated in the currency in
which the benefits will be paid, and that have terms to maturity approximating the terms
of related pension liability; when there is no deep market in high-quality corporate bonds,
the Group uses interest rates of government bonds (at the balance sheet date) instead.
ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive
income in the period in which they arise and are recorded as retained earnings.
iii. Past service costs are recognized immediately in profit or loss.
iv. 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.
~21~
C. Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of
employment as a result from either the Group’s decision to terminate an employee’s employment
before the normal retirement date, or an employee’s decision to accept an offer of redundancy
benefits in exchange for the termination of employment. The Group recognizes expense as it can
no longer withdraw an offer of termination benefits or it recognizes relating restructuring costs,
whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet
date shall be discounted to their present value.
D. Employees’ compensation, directors’ and supervisors’ remuneration
Employees’ compensation and directors’ and supervisors’ remuneration are recognized as
expenses and liabilities, provided that such recognition is required under legal or constructive
obligation and those amounts can be reliably estimated. Any difference between the resolved
amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.
(6) Income tax
A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or
loss, except to the extent that it relates to items recognized in other comprehensive income or
items recognized directly in equity, in which cases the tax is recognized in other comprehensive
income or equity.
B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the balance sheet date in the countries where the Company and its subsidiaries operate
and generate taxable income. Management periodically evaluates positions taken in tax returns
with respect to situations in accordance with applicable tax regulations. It establishes provisions
where appropriate based on the amounts expected to be paid to the tax authorities. An additional
10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense
in the year the stockholders resolve to retain the earnings.
C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the
consolidated balance sheet. Deferred tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the balance sheet date and are expected to apply when the
related deferred tax asset is realized or the deferred income tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilized. At each balance sheet
date, unrecognized and recognized deferred tax assets are reassessed.
~22~
E. Current tax assets and liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to
settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets
and liabilities are offset on the balance sheet when the entity has the legally enforceable right to
offset current tax assets against current tax liabilities and they are levied by the same taxation
authority on either the same entity or different entities that intend to settle on a net basis or realize
the asset and settle the liability simultaneously.
F. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from
research and development expenditures, to the extent that it is possible that future taxable profit
will be available against which the unused tax credits can be utilized.
G. 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.
H. 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, 2019. Please refer to Note 5 of the consolidated
financial statements for the year ended December 31, 2018.
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.
June 30, 2019 December 31, 2018 June 30, 2018
Cash on hand and revolving funds $ 266,366 $ 353,440 324,680$
Checking accounts and demand deposits 9,889,384 8,820,471 5,744,898
Time deposits 6,871,821 5,897,081 9,249,413
17,027,571$ 15,070,992$ 15,318,991$
~23~
(2) Financial assets and liabilities at fair value through profit or loss
A. Amounts recognized in profit or loss in relation to financial assets at fair value through profit or
loss are listed below:
Items June 30, 2019 December 31, 2018 June 30, 2018
Current items:
Financial assets mandatorily measured
at fair value through profit or loss
Beneficiary certificates 368,083$ 505,965$ 377,139$
Derivatives 12,781 50,315 41,728
380,864 556,280 418,867
Valuation adjustment 1,258 1,642)( 1,176
382,122$ 554,638$ 420,043$
Financial liabilities mandatorily measured
at fair value through profit or loss
Derivatives 4,487$ 548$ -$
2019 2018
Financial assets mandatorily measured
at fair value through profit or loss
Beneficiary certificates 1,156$ 13,773)($
Derivatives 24,907 52,179
Unlisted shares - 15,117
26,063$ 53,523$
2019 2018
Financial assets mandatorily measured
at fair value through profit or loss
Beneficiary certificates 3,807$ 13,775)($
Derivatives 52,407 39,910
Unlisted shares - -
56,214$ 26,135$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~24~
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.
C. Information relating to credit risk of financial assets at fair value through profit or loss is provided
in Note 12(2).
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)
Contract Period
Foreign exchange swap contract (1 item) THB 69,250 thousand 2018.05.18~2019.05.22
Foreign exchange swap contract (5 items) USD 50,000 thousand 2018.12.05~2019.01.09
Foreign exchange contract-buy (11 items) USD 35,370 thousand 2018.05.02~2019.09.17
Merchandise exchange contract (3 items) USD 3,580 thousand 2018.10.31~2019.03.29
December 31, 2018
Contract Amount
(notional principal)
Contract Period
Foreign exchange swap contract (1 item) THB 69,250 thousand 2018.05.18~2019.05.22
Foreign exchange swap contract (5 items) USD 30,000 thousand 2018.06.25~2018.07.05
Foreign exchange contract-buy (11 items) USD 35,370 thousand 2018.05.02~2019.09.14
June 30, 2018
Contract Amount
(notional principal)
~25~
(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, 2019 December 31, 2018 June 30, 2018
Current items:
Debt instruments
Corporate bonds 27,461$ 26,953$ 68,226$
Valuation adjustment 170)( 175)( 4,031)(
27,291 26,778 64,195
Equity instruments
Listed stocks 310,746 349,894 532,676
Valuation adjustment 191,313 123,655 19,406
502,059 473,549 552,082
529,350$ 500,327$ 616,277$
Non-current items:
Equity instruments
Unlisted shares 919,435$ 919,414$ 759,956$
Valuation adjustment 151,026)( 130,803)( 115,894)(
768,409$ 788,611$ 644,062$
2019 2018
Equity instruments at fair value through
other comprehensive income
Fair value change recognized in other
comprehensive income 11,123$ 595)($
Cumulative losses 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)($ 151)($
Exchange loss recognised in profit or loss 112)($ 374)($
Interest income recognised in profit or loss 262$ 1,665$
For the three-month periods ended June 30,
~26~
C. 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 amortised cost
A. The Group has no financial assets at amortised cost pledged to others as collateral.
B. As at June 30, 2019, December 31, 2018 and June 30, 2018, 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 amortised cost held by the Group was
$72,903, $370,331 and $219,509, respectively.
(5) Notes and accounts receivable
For the long-term receivables due in one year, please refer to Notes 6 (11), 12 (2) C. (b) for detailed
information.
2019 2018
Equity instruments at fair value through
other comprehensive income
Fair value change recognized in other
comprehensive income 47,978$ 30,180$
Cumulative losses reclassified to
retained earnings due to derecognition 2,367)($ -$
Debt instruments at fair value through
other comprehensive income
Fair value change recognised in other
comprehensive income 4$ 218$
Exchange gain recognised in profit or loss 508$ 188$
Interest income recognised in profit or loss 529$ 4,592$
For the six-month periods ended June 30,
Items June 30, 2019 December 31, 2018 June 30, 2018
Current items:
Time deposits with maturity
over three months 72,903$ 370,331$ 219,509$
June 30, 2019 December 31, 2018 June 30, 2018
Notes receivable 109,923$ 75,006$ 126,932$
Accounts receivable 4,456,253 8,839,281 3,880,406
Long-term receivables due
in one year 284,357 278,646 273,183
Less: Allowance for bad debts 25,850)( 25,595)( 73,661)(
4,824,683$ 9,167,338$ 4,206,860$
~27~
A. The ageing analysis of notes receivable and accounts receivable that were past due but not
impaired is as follows:
The above analysis is calculated based on past due date.
B. As of June 30, 2019, December 31, 2018, June 30, 2018 and January 1, 2018, the balances of
receivables (including notes receivable) from contracts with customers amounted to $4,540,327,
$8,888,692, $3,933,677 and $5,090,821, respectively.
(6) Prepayments
(7) Investments accounted for under the equity method
June 30, 2019 December 31, 2018 June 30, 2018
Up to 30 days 3,968,785$ 6,504,537$ 2,828,640$
31 to 90 days 273,531 1,956,758 937,760
91 to 180 days 203,121 218,242 137,028
Over 180 days 379,246 487,801 303,432
4,824,683$ 9,167,338$ 4,206,860$
June 30, 2019 December 31, 2018 June 30, 2018
Prepayment for materials 3,703,191$ 2,581,564$ 3,515,135$
Prepayment for construction
in progress 337,119 480,547 161,235
Others 1,251,257 1,191,784 1,453,171
5,291,567$ 4,253,895$ 5,129,541$
2019 2018
At January 1 3,680,933$ 3,627,018$
Addition of investments accounted for using
equity method - 27,500
Loss on disposal of investments accounted for
using equity method 219,336)( -
Share of profit or loss of investments accounted
for using equity method 208,525)( 17,997)(
Earnings distribution of investments accounted
for under equity method 63,455)( 72,063)(
Changes in other equity items 14,149)( 18,435
At June 30 3,175,468$ 3,582,893$
~28~
A. Associates
(a) The basic information of the associates that are material to the Group is as follows:
(b) The summarized financial information of the associates that are material to the Group is as
follows:
Balance sheet
Associates: June 30, 2019 December 31, 2018 June 30, 2018
Pan Asia Corp. 220,865$ 526,590$ 529,012$
Powertec Energy Corp. 1,038,147 1,227,090 1,370,557
Boretech Resource Recovery
Engineering Co., Ltd.
(Cayman) 441,243 438,252 449,437
MIE Industrial SDN. BHD 575,565 556,704 487,030
Blue Whale Water
Technology Co., Ltd. 399,109 434,937 392,019
EVER ECOVE Corp. 294,998 295,971 -
HDEC-CTCI (Linhai)
Corporation 205,541 201,389 -
Joint ventures:
ECOVE Solar Energy
Corporation - - 354,838
3,175,468$ 3,680,933$ 3,582,893$
Company
name
Principal
place
of business
June 30,
2019
December
31, 2018
June 30,
2018
Nature of
relationship
Method of
measurement
Powertec
Energy Corp.
Taiwan 16.03% 16.03% 16.03% Associates Equity method
Shareholding ratio
June 30, 2019 December 31, 2018 June 30, 2018
Current assets 679,234$ 1,636,879$ 2,312,251$
Non-current assets 22,284,913 20,905,041 20,070,623
Current liabilities 689,243)( 707,663)( 485,697)(
Non-current liabilities 12,162,435)( 10,572,795)( 9,679,985)(
Total net assets 10,112,469$ 11,261,462$ 12,217,192$
Share in associate's
net assets 1,621,029$ 1,805,212$ 2,307,828$
Carrying amount of the
associate 1,038,147$ 1,227,090$ 1,370,557$
Powertec Energy Corp.
~29~
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, 2019, December 31, 2018 and June 30, 2018, the carrying amount of the
Group’s individually immaterial associates amounted to $2,137,321, $2,453,843 and
$1,857,498, respectively.
(d) In August 2018, the Board of Directors during its meeting resolved to jointly establish Ever
Ecove Corporation with Evergreen Steel Corporation, and the investment amount is $300,000,
representing 30,000,000 shares, equivalent to 30% of equity.
(e) In September 2018, the Board of Directors during its meeting resolved to jointly establish
HDEC-CTCI (Linhai) Corporation with Hsin Dar Environment Corp., and the investment
amount is $202,500, representing 20,250,000 shares, equivalent to 45% of equity.
(f) 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 $5,158 was recognized as gain on disposal of
investments (shown as other gains and losses).
(g) The above investments accounted for using the equity method were not reviewed by
independent accountants as of June 30, 2019 and 2018.
2019 2018
Revenue -$ -$
Total comprehensive loss 608,202)($ 356,087)($
2019 2018
Revenue -$ -$
Total comprehensive loss 1,178,861)($ 602,412)($
Powertec Energy Corp.
For the three-month periods ended June 30,
Powertec Energy Corp.
For the six-month periods ended June 30,
2019 2018
Total comprehensive income 320,035$ 49,941$
2019 2018
Total comprehensive income 119,582$ 164,945$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~30~
(h) The above investments accounted for using the equity method, Pan Asia Corp., Powertec
Energy Corp., Blue Whale Water Technology Co. Ltd., EVER ECOVE Corp., and HDEC-
CTCI (Linhai Corporation), were recognized based on the financial statements which have
been audited by other auditors as of December 31, 2018.
B. Joint venture
(a) The basic information of the joint ventures that are material to the Group is as follows:
(b) The summarized financial information of the joint ventures that are material to the Group is
as follows:
Balance sheet
Shareholding ratio
Company
name
Principal
place
of business June 30, 2018
Nature of
relationship
Method of
measurement
ECOVE
Solar Energy
Corporation
Taiwan 50.00% Joint
ventures
Equity
method
ECOVE Solar Energy Corporation
June 30, 2018
Cash and cash equivalents 30,793$
Other current assets 443,769
Current assets 474,562
Non-current assets 930,991
Total assets 1,405,553$
Current financial liabilities 319,826$
Other current liabilities 23,846
Current liabilities 343,672
Non-current liabilities 352,181
Total liabilities 695,853$
Total net assets 709,700$
Share in associate's net assets 354,850$
Carrying amount of the associate 354,838$
~31~
Statement of comprehensive income
C. Explanation for holding ECOVE Solar Energy Corporation shares:
(a) The Group holds 50% equity in the joint venture - ECOVE Solar Energy Corporation and its
main activity is environmental engineering.
(b) The Board of Directors had resolved to invest in ECOVE Solar Energy Corporation, in March
2018. The Group invested in ECOVE Solar Energy Corporation amounting to $27,500.
(c) On September 20, 2018, the Group acquired 50% equity interest of ECOVE Solar Energy
Corporation by cash, which became a subsidiary whose 100% equity was indirectly held by
the Group. The acquiree was consolidated into financial statements from the date of acquisition.
Please refer to Note 6(31) for further information.
For the three-month For the six-month
period ended period ended
June 30, 2018 June 30, 2018
Revenue 17,083$ 29,543$
Depreciation and amortization 5,376)($ 10,752)($
Interest income 86$ 238$
Interest expense 1,697)($ 3,418)($
Profit before income tax 13,656$ 26,947$
Income tax expense 1,486)( 3,037)(
Profit for the period 12,170 23,910
Other comprehensive income-net of tax 16,140 8,538
Total comprehensive income 28,310$ 32,448$
ECOVE Solar Energy Corporation
~32~
(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, 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$
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$
~33~
A. The Group had no borrowing costs capitalized for the six-month periods ended June 30, 2019 and 2018.
B. Please refer to Note 8 for the details of pledged property, plant and equipment.
Land
Buildings and
structures Machinery
Transportation
equipment
Office
equipment
Unfinished
construction and
prepayments
for equipment Others Total
At January 1, 2018
Cost 3,357,596$ 4,396,599$ 961,309$ 244,873$ 238,180$ 45,951$ 750,426$ 9,994,934$
Accumulated depreciation - 1,620,322)( 826,362)( 187,730)( 225,129)( - 475,275)( 3,334,818)(
3,357,596$ 2,776,277$ 134,947$ 57,143$ 13,051$ 45,951$ 275,151$ 6,660,116$
Six-month period ended
June 30, 2018
Opening net book amount 3,357,596$ 2,776,277$ 134,947$ 57,143$ 13,051$ 45,951$ 275,151$ 6,660,116$
Additions - 3,085 28,650 3,735 1,064 27,025 15,868 79,427
Acquired from business
acquisition 61,000 516 6,559 129 - - 288 68,492
Disposals - 159,010)( 150)( - 77)( - 353)( 159,590)(
Depreciation charge - 65,964)( 31,808)( 9,484)( 1,472)( - 68,788)( 177,516)(
Reclassifications - 113)( 614 - 624)( 900)( 1,023 -
Net exchange differences 333 1,588 149 241 232)( 49 526)( 1,602
Closing net book amount 3,418,929$ 2,556,379$ 138,961$ 51,764$ 11,710$ 72,125$ 222,663$ 6,472,531$
At June 30, 2018
Cost 3,418,929$ 4,086,083$ 993,952$ 248,737$ 244,633$ 72,125$ 766,409$ 9,830,868$
Accumulated depreciation - 1,529,704)( 854,991)( 196,973)( 232,923)( - 543,746)( 3,358,337)(
3,418,929$ 2,556,379$ 138,961$ 51,764$ 11,710$ 72,125$ 222,663$ 6,472,531$
~34~
(9) Leasing arrangements-lessee
A. The Group leases various assets including land, buildings, business vehicles, multifunction
printers. 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, 2019, the additions to right-of-use
assets were $47,788 and $48,899, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:
E. For the six-month period ended June 30, 2019, the Group’s total cash outflow for leases was
$105,999.
June 30, 2019
Carrying amount
Land 197,206$
Buildings 80,350
Transportation equipment (Business vehicles) 54,221
Office equipment (Photocopiers) 35,398
Other equipment 38,780
405,955$
For the three-month
period ended
For the six-month
period ended
June 30, 2019 June 30, 2019
Depreciation charge Depreciation charge
Land $ 9,290 $ 16,999
Buildings 12,294 17,958
Transportation equipment (Business vehicles) 8,087 13,807
Office equipment (Photocopiers) 3,425 7,008
Other equipment 2,204 3,698
35,300$ 59,470$
For the six-month
period ended
June 30, 2019
Items affecting profit or loss
Interest expense on lease liabilities $ 1,186
Expense on short-term lease contracts 149,657
Expense on leases of low-value assets 517
Expense on variable lease payments 10,268
~35~
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 lease contract.
(10) Investment property
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$
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$
Buildings and
Land structures Total
At January 1, 2018
Cost 718,428$ 126,572$ 845,000$
Accumulated depreciation - 32,348)( 32,348)(
718,428$ 94,224$ 812,652$
Six-month period ended
June 30, 2018
Opening net book amount 718,428$ 94,224$ 812,652$
Depreciation charge - 2,262)( 2,262)(
Closing net book amount 718,428$ 91,962$ 810,390$
At June 30, 2018
Cost 718,428$ 126,572$ 845,000$
Accumulated depreciation - 34,610)( 34,610)(
718,428$ 91,962$ 810,390$
~36~
A. Rental income from the lease of the investment property and direct operating expenses arising
from the investment property are shown below:
B. The fair value of the investment property held by the Group as at June 30, 2019 and 2018 were
$906,867 and $820,372, respectively, which are based on the real estate market transaction price.
Also, the fair value as at December 31, 2018 was $930,000, which was valued by independent
valuers. Valuations were made using the income approach with key assumptions as follows:
C. Information about the investment property that was pledged to others as collateral is provided in
Note 8.
2019 2018
Rental income from investment property 7,838$ 7,838$
Direct operating expenses arising from the
investment property that generated rental
income in the period 1,076$ 1,131$
Direct operating expenses arising from the
investment property that did not generate
rental income in the period -$ -$
2019 2018
Rental income from investment property 15,641$ 15,641$
Direct operating expenses arising from the
investment property that generated rental
income in the period 2,153$ 2,262$
Direct operating expenses arising from the
investment property that did not generate
rental income in the period -$ -$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
December 31, 2018
Gross margin 2.55%
Growth rate 1%~1.5%
Discount rate 3.30%
~37~
(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(4)), and is recognized as long-term accounts receivable 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 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 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 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
June 30, 2019 December 31, 2018 June 30, 2018
Long-term receivables 2,603,802$ 2,670,985$ 2,626,881$
Less: Long-term receivables
due in one year 284,357)( 278,646)( 273,183)(
2,319,445 2,392,339 2,353,698
Long-term prepaid rent - 37,897 40,309
Restricted bank deposits 172,013 188,619 16,315
Refundable deposits 138,729 130,167 133,135
Prepayments for business 882,355 546,344 40,500
Air pollution fee 54,267 54,267 54,267
Others 241,169 218,899 150,370
3,807,978$ 3,568,532$ 2,788,594$
~38~
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 Fortune 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. Long-term prepaid rents were according to the “BOT Agreement” due to the land-use rights
obtained by ECOVE Wujih Energy Corp., and ECOVE Miaoli Energy Corp. and transferred to
right-of-use assets for applying IFRS16 from January 1, 2019.
C. Information about the restricted bank deposits and refundable deposits that were pledged to
others as collateral is provided in Note 8.
D. Information about the air pollution fee is provided in Note 9(7).
(12) Short-term borrowings
Note 1: ECOVE Solvent Recycling Corporation has committed that upon completion of if 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: Properties pledged by subsidiary - CTCI Development Corp., and were guaranteed and
endorsed by the Company.
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 2
10,396,242$
Type of borrowing December 31, 2018 Interest rate range Collateral
Unsecured borrowings 11,287,309$ 0.68%~8.05% -Secured borrowings 2,127,150 1.04%~1.24% Properties pledged by
subsidiary-CTCI
Development Corp. and
time deposits of USD
4,560 thousand
mortgaged to banks,
and all were guaranteed
and endorsed by the
Company
13,414,459$
~39~
(13) Accounts payable
(14) Other payables
Note: Payables on land purchases arise from the payment that the subsidiary, CTCI Development
Corp. purchases the land.
(15) Other current liabilities
Joint venture represents the excess of accumulated cost over the accumulated capital injection and
bills.
Type of borrowing June 30, 2018 Interest rate range Collateral
Unsecured borrowings 8,047,275$ 0.65%~7.8% -
June 30, 2019 December 31, 2018 June 30, 2018
Materials payable 4,592,619$ 4,743,519$ 2,883,908$
Sub-contract costs payable 4,664,584 4,818,197 5,077,160
Maintenance costs payable 253,918 281,003 424,917
Equipment buying costs payable 60,660 36,861 32,058
Others 92,285 111,682 192,084
9,664,066$ 9,991,262$ 8,610,127$
June 30, 2019 December 31, 2018 June 30, 2018
Accrued payroll 947,440$ 1,664,616$ 967,532$
Accrued employees’
compensation, directors’
and supervisors’ remuneration 153,812 148,763 211,753
Accrued insurance 70,226 83,359 55,832
Accrued pension 40,375 33,206 20,460
Dividends payable 2,113,814 - 2,844,131
Payables on land purchases
(Note) - 1,785,960 -
Others 762,903 976,612 558,527
4,088,570$ 4,692,516$ 4,658,235$
June 30, 2019 December 31, 2018 June 30, 2018
Joint venture 2,938,901$ 7,323,938$ 3,344,175$
Long-term borrowings -
current portion 195,764 128,268 266,617
Receipts in advance 23,132 161,659 83,311
Others 72,051 36,795 81,155
3,229,848$ 7,650,660$ 3,775,258$
~40~
(16) Long-term borrowings
Type of borrowings
Borrowing period
and repayment term
Interest
rate range Collateral
Financing
amount June 30, 2019 December 31, 2018 June 30, 2018
Subsidiary - ECOVE Miaoli
Energy Corp.
Mega International
Commercial Bank
secured borrowings (Note 1)
Borrowing period is
from November 2010
to April 2019; interest
is payable monthly.
1.3875%
~1.3915%
Machineries and other
equipment
constructed or
acquired
523,200$ -$ 4,000$ 92,000$
Subsidiary - ECOVE Solvent
Recycling Corp.
Chang Hwa Bank
secured borrowings (Note 2)
Borrowing period is
from September 2014
to September 2021;
interest is payable
monthly.
2.3%
~2.47%
Land and buildings
and structures
29,500 - 25,645 27,600
Subsidiary - ECOVE Solar
Energy Corporation
The Shanghai Commercial &
Savings Bank, Ltd.
secured borrowings
Borrowing period is
from June 2018 to
June 2033; Principal
and interest are
payable monthly.
1.7% ECOVE Solar Energy
Corporation issued a
promissory note of
$302,760 thousand,
which is guaranteed
by ECOVE
Environment Corp.
310,000 293,559 302,755 -
Subsidiary - ECOVE Solar
Energy Corporation
KGI Bank
secured borrowings
Borrowing period is
from May 2015 to
May 2021; Principal
and interest are
payable monthly.
1.4878% ECOVE Solar Energy
Corporation issued a
promissory note of
$152,690 thousand,
which is guaranteed
by ECOVE
Environment Corp.
220,000 142,196 151,191 -
~41~
Type of borrowings
Borrowing period
and repayment term
Interest
rate range Collateral
Financing
amount June 30, 2019 December 31, 2018 June 30, 2018
Subsidiary - ECOVE Solar
Energy Corporation
Chang Hwa Bank
secured borrowings
Borrowing period is
from June 2016 to
August 2030;
principal and interest
are payable monthly.
1.89%~
2.14%
Guaranteed by ECOVE
Environment Corp.
155,000$ 135,249$ 141,124$ -$
Subsidiary - ECOVE Solar
Power Corporation
First Bank
secured borrowings
Borrowing period is
from January 2014 to
May 2030; principal
and interest are
payable monthly.
1.72% ECOVE Solar Energy
Corporation issued a
promissory note of
$81,760 thousand, which
is guaranteed by ECOVE
Solar Energy Corporation
108,000 74,362 77,794 -
Subsidiary - ECOVE Solar
Power Corporation
Bank SinoPac
secured borrowings
Borrowing period is
from August 2014 to
August 2030;
principal and interest
are payable monthly.
1.57%~
1.62%
ECOVE Solar Power
Corporation issued a
promissory note of
$636,290 thousand, which
is guaranteed by ECOVE
Solar Energy Corporation
149,800 112,812 118,360 -
Subsidiary - ECOVE Solar
Power Corporation
Bank SinoPac
secured borrowings
Borrowing period is
from August 2018 to
August 2023;
principal and interest
are payable monthly.
1.49%~
1.62%
〃 280,000 221,492 226,996 -
Subsidiary - ECOVE Solar
Power Corporation
Bank SinoPac
secured borrowings
Borrowing period is
from March 2019 to
June 2024; principal
and interest are
payable monthly.
1.49% ECOVE Solar Power
Corporation issued a
promissory note of
$636,290 thousand, which
is guaranteed by ECOVE
Environment Corp.
217,000 185,700 - -
~42~
Type of borrowings
Borrowing period
and repayment term
Interest
rate range Collateral
Financing
amount June 30, 2019 December 31, 2018 June 30, 2018
Subsidiary - ECOVE Solar
Power Corporation
Hua Nan Bank
secured borrowings
Borrowing period is
from June 2015 to
June 2030; principal
and interest are
payable monthly.
1.72% ECOVE Solar Power
Corporation issued a
promissory note of
$25,650 thousand, which
is guaranteed by ECOVE
Solar Energy Corporation
38,430$ 23,370$ 24,423$ -$
Subsidiary - ECOVE Solar
Power Corporation
Far Eastern International Bank
Co., Ltd.
secured borrowings
Borrowing period is
from September 2015
to September 2020;
principal is payable
seasonally, and
interest is payable
monthly.
2.045% ECOVE Solar Power
Corporation issued a
promissory note of $27
million, which is
guaranteed by ECOVE
Solar Energy Corporation
27,000 3,400 4,480 -
Subsidiary - ECOVE Solar
Power Corporation
KGI Bank
secured borrowings
Borrowing period is
from November 2017
to November 2032;
principal and interest
are payable monthly.
1.9862%~
1.9877%
ECOVE Solar Power
Corporation issued a
promissory note of $85
million, which is
guaranteed by ECOVE
Solar Energy Corporation
100,000 78,197 81,113 -
~43~
Type of borrowings
Borrowing period
and repayment term
Interest
rate range Collateral
Financing
amount June 30, 2019 December 31, 2018 June 30, 2018
Subsidiary - ECOVE Central
Corporation Ltd.
Bank SinoPac
secured borrowings
Borrowing period is
from December 2018
to December 2023;
principal and interest
are payable monthly.
1.6%~
1.616%
ECOVE Central
Corporation Ltd. issued a
promissory note of $16
million, which is
guaranteed by ECOVE
Solar Energy Corporation
16,000$ 15,200$ 16,000$ -$
Subsidiary - ECOVE South
Corporation Ltd.
Bank SinoPac
secured borrowings
Borrowing period is
from December 2018
to December 2023;
principal and interest
are payable monthly.
1.6% ECOVE South
Corporation Ltd. issued a
promissory note of $14
million, which is
guaranteed by ECOVE
Solar Energy Corporation
14,000 13,300 14,000 -
Subsidiary - LUMBERTON
SOLAR
Bank SinoPac
secured borrowings
Borrowing period is
from September 2017
to August 2023;
principal and interest
are payable monthly.
4.9023%~
5.029%
ECOVE Solar Energy
Corporation issued a
promissory note of
US$14,640 thousand and
US$11,910 thousand at
December 31, 2018 and
June 30, 2019,
respectively, which is
guaranteed by ECOVE
Solar Energy Corporation
454,556 354,540 363,973 -
~44~
Note 1: ECOVE Miaoli Energy Corp. commited to maintain the following financial ratios and criteria during the period of the contract:
a. Current ratio (current assets + restricted assets provided as a compensation for the credit loan)/current liabilities: More than 100%
b. Liability ratio (total liabilities/ net equity): Less than 190%.
c. Interest coverage ratio ((income before tax + interest expense) / interest expense): At least 150%.
Note 2: ECOVE Solvent Recycling Corporation committed that if the construction has been completed, ECOVE Solvent Recycling Corporation will
complete the registration of ownership on the construction and pledge with the basement of construction in first priority to Chang Hwa Bank.
Type of borrowings
Borrowing period
and repayment term
Interest
rate range Collateral
Financing
amount June 30, 2019 December 31, 2018 June 30, 2018
Subsidiary - CTCI
Development Corporation
KGI Bank
secured borrowings
Borrowing period is
from January 2019 to
December 2048;
interest is payable
monthly, and principal
is payable
semiannually after
grace period.
1.36378%~
1.36522%
Land and buildings and
structures
3,700,000$ 1,965,960$ -$ -$
Subsidiary - CTCI
Development Corporation
Taiwan Cooperative Bank
secured borrowings
Borrowing period is
from April 2009 to
April 2029; interest is
payable monthly, and
principal is payable
semiannually.
1.3504% Land and buildings and
structures
3,600,000 - - 2,001,150
Less: Current portion 195,764)( 128,268)( 266,617)(
3,423,573$ 1,423,586$ 1,854,133$
~45~
(17) Other non-current liabilities
Note: Deferred revenue is a cash grant received from New Jersey government since Lumberton
builds and operates a solar power station in New Jersey. The construction period of the solar
power station is 15 years.
(18) 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 cost of $10,816, $13,639,
$21,655 and $27,702 for the three-month and six-month periods ended June 30, 2019 and
2018, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending
December 31, 2020 amount to $86,581.
June 30, 2019 December 31, 2018 June 30, 2018
Net defined benefit liabilities 1,511,544$ 1,847,269$ 1,880,353$
Deposits received 336,382 407,649 378,517
Accrued recovery costs 97,708 98,932 98,687
Deferred revenue (Note) 164,873 169,741 -
Others 70,645 92,101 77,013
2,181,152$ 2,615,692$ 2,434,570$
~46~
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’
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, 2019 and 2018 were $51,380, $51,170,
$103,228 and $101,817, 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, 2019 and 2018 were $25,549, $22,570, $57,503 and $44,174, respectively.
(19) Share-based payment - employee compensation
A. The Company
(a) For the six-month periods ended June 30, 2019 and 2018, the Company’s share-based
payment arrangements were as follows:
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
~47~
(b) The above employee stock options are set forth below:
i. Details of the fifth plan of employee stock options outstanding as of June 30, 2019 and
2018 are set forth below:
ii. Details of the sixth plan of employee stock options outstanding as of June 30, 2019 and
2018 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 18,328.55 NT$49.60 19,125.30 NT$49.60
Options granted - - - -
Options waived 388.11)( - 426.78)( -
Options exercised 36.15)( NT$49.60 - -
Options outstanding
at end of period 17,904.29 NT$49.60 18,698.52 NT$49.60
Options exercisable
at end of period 7,485.45 NT$49.60 - -
For the six-month periods ended June 30,
2019 2018
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 19,294.54 NT$45.90 - -
Options granted - - 20,000.00 NT$45.90
Options waived 469.32)( - 298.55)( -
Options revoked - - - -
Options outstanding
at end of period 18,825.22 NT$45.90 19,701.45 NT$45.90
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2019 2018
~48~
iii. Details of the seventh plan of employee stock options outstanding as of June 30, 2019 is
set forth below:
(c) The weighted-average stock price of stock options at exercise dates for the six-month period
ended June 30, 2019 was NT$46.40.
(d) As of June 30, 2019, December 31, 2018 and June 30, 2018, the range of exercise prices of
stock options outstanding were NT$45.90~NT$49.60; the weighted-average remaining
contractual period was 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 20,000.00 NT$48.90
Options waived 357.44)( -
Options revoked - -
Options outstanding
at end of period 19,642.56 NT$48.90
Options exercisable
at end of period - -
For the six-month period ended June 30, 2019
Type of arrangement June 30, 2019 December 31, 2018 June 30, 2018
Fifth plan of employee
stock options
4~5 years 4~5 years 4~5 years
Sixth plan of employee
stock options
4~5 years 4~5 years 4~5 years
Seventh plan of
employee stock options
4~5 years-
-
Type of
arrangement
Grant
date
Stock
price
(in dollars)
Exercise
price
(in dollars)
Expected
price
volatility
Expected
option
life
Expected
dividends
Risk free
interest
rate
Fair value
per unit
(in dollars)
Fifth plan of
employee stock
options
2017.4.11 NT$ 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
~49~
(f) For the three-month and six-month periods ended June 30, 2019 and 2018, expense
recognized arising from share-based payment amounted to $41,507, $29,370, $73,170 and
$49,627, respectively.
B. Subsidiary – CTCI Advanced System Inc.
(a) For the six-month periods ended June 30, 2019 and 2018, 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 as of June 30, 2019 and
2018 are set forth below
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
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 583.00 NT$44.00 - -
Options granted - - 600.00 NT$46.85
Options waived 15.00)( - 3.00)( -
Options revoked - - - -
Options outstanding
at end of period 568.00 NT$44.00 597.00 -
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2019 2018
~50~
ii. Details of the seventh plan of employee stock options outstanding as of June 30, 2019 and
2018 are set forth below:
(c) For the six-month periods ended June 30, 2019 and 2018, no stock options had been executed.
(d) As of June 30, 2019, December 31, 2018 and June 30, 2018, the exercise price of stock
options outstanding were NT$42.20~NT$44.00, NT$46.85 and NT$ 46.85, respectively. The
weighted-average remaining contractual period were 4.75~5.75 years, 0~5.25 years and 0
~5.75 years, respectively.
(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, 2019 and 2018, the expenses
incurred on share-based payment transactions were $982, $476, $1,444 and $523,
respectively.
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 - - - -
Options granted 600.00 NT$42.20 - -
Options waived 6.00)( - - -
Options revoked - - - -
Options outstanding
at end of period 594.00 NT$42.20 - -
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2019 2018
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$8.67~
NT$9.85
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$7.08~
NT$8.33
~51~
C. Subsidiary – ECOVE Environment Corp.
(a) For the six-month periods ended June 30, 2019 and 2018, 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 fourth plan of employee stock options outstanding as of June 30, 2019 and
2018 are set forth below: all options were exercised.
Type of
arrangement Grant date Quantity granted Contract period Vesting conditions
Fourth plan of employee
stock options
2011.6.17 1,200 units 6 years Service of
2 years
Fifth plan of employee
stock options
2012.6.28 1,200 units 6 years Service of
2 years
Sixth plan of employee
stock options
2018.7.09 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 - - 3.00 NT$106.30
Options waived - - 3.00)( -
Options exercised - - - -
Options outstanding
at end of period - - - -
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2019 2018
~52~
ii. Details of the fifth plan of employee stock options outstanding as of June 30, 2019 and
2018 are set forth below: all options were exercised.
iii. Details of the sixth plan of employee stock options outstanding as of June 30, 2019 is set
forth below:
(c) The weighted-average stock price of stock options at exercise dates for the six-month periods
ended June 30, 2019 and 2018 were NT$186.13 and NT$171.85, respectively.
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 - - 298.25 NT$103.00
Options waived - - 3.75)( -
Options exercised - - 294.50)( NT$103.00
Options outstanding
at end of period - - - -
Options exercisable
at end of period - - - -
For the six-month periods ended June 30,
2019 2018
No. of units
Weighted-
average
(shares in exercise price
Stock options thousands) (in dollars)
Options outstanding
at beginning of period1,448.27
NT$173.50
Options waived 24.05)( -
Options exercised - -
Options outstanding at end
of period 1,424.22 NT$163.90
Options exercisable at end
of period - -
For the six-month period ended June 30, 2019
~53~
(d) As of June 30, 2019, December 31, 2018, and June 30, 2018, the range of exercise prices of
stock options outstanding were NT$163.90, NT$173.5 and NT$103~NT$106.3, respectively;
the weighted-average remaining contractual period was as follows:
(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, 2019 and 2018, the expenses
incurred on share-based payment transactions were $2,442 and $4,966, respectively.
(20) Share capital
A. As of June 30, 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 $7,633,100, consisting
of 763,310,001 shares with a par value of NT$10 per share.
Movements in the number of the Company’s ordinary shares outstanding are as follows:
Type of arrangement June 30, 2019 December 31, 2018 June 30, 2018
Fourth plan of employee
stock options
- - -
Fifth plan of employee
stock options
- - -
Sixth plan of employee
stock options
5.25 years 5.5 year -
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)
Fourth plan of
employee stock
options
2011.6.17 NT$146.0 NT$146.0 38.65% 4.50
years
0% 1.05% NT$48.82
Fifth plan of
employee stock
options
2012.6.28 NT$145.0 NT$145.0 33.63% 4.60
years
0% 1.00% NT$42.79
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~
NT22.44
2019
At January 1 763,273,848
Employee stock options exercised 36,153
At June 30 763,310,001
~54~
B. Treasury shares
(a) Reason for share reacquisition and movements in the number of the Company’s treasury
shares are as follows:
(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.
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
$ 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
$ 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
$ 11,835
June 30, 2019
December 31, 2018
June 30, 2018
~55~
(21) 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.
B. The details and movements of capital surplus are provided as follows:
C. Please refer to Note 6 (19) for details about the capital surplus - employee stock options.
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 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
Share premium
Treasury share
transactions
Difference
between
consideration and
carrying amount of
subsidiaries
acquired or
disposed
Employee stock
options Others Total
At January 1, 2018 2,865,969$ 5,043$ 205,931$ 309,435$ 9,242$ 3,395,620$
Employee stock options
exercised by subsidiary - - 5,315 - - 5,315
Share-based payment
transaction - - - 64,563 - 64,563
At June 30, 2018 $ 2,865,969 $ 5,043 $ 211,246 $ 373,998 $ 9,242 $ 3,465,498
~56~
(22) Retained earnings
Note: The Company has adopted the modified retrospective approach under IFRS 9. For details of
the effect as at January 1, 2018, please refer to Note 12(4) B of the consolidated financial
statements and for 2018.
A. When net profit occurs 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 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’ 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.
To meet the requirements in business expansion and industry growth, fulfilling future operating
needs and stabilizing financial structure is the priority of the Company's dividend policy. 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%.
2019 2018
At January 1 2,217,619$ 3,061,699$
Effect of retrospective restatement (Note) - 166,327
At January 1 (revised) 2,217,619$ 3,228,026$
Profit for the period 493,537 727,722
Legal reserve appropriated 182,754)( 280,534)(
Cash dividends 1,721,210)( 2,468,202)(
Reversal of special reserve 1,417 2,110
Valuation adjustment transferred to retained
earnings 2,367)( -
Impact of change in tax rate - 19,951
At June 30 $ 806,242 $ 1,229,073
~57~
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.
E. The Company’s appropriations of 2018 and 2017 earnings had been resolved at the stockholders’
meeting on May 29, 2019 and 2018, respectively. Details are summarized below:
F. The appropriation of 2018 earnings became effective on August 1, 2019, as resolved at the Board
of Director’s meeting on May 29, 2019.
G. For information relating to employees’ compensation (bonuses) and directors’ remuneration,
please refer to Note 6(28).
Amount
Dividends
per share
(in NT dollars) Amount
Dividends
per share
(in NT dollars)
Set aside as legal reserve 182,754$ -NT$ 280,534$ -NT$
Reversal of special reserve 1,417)( - 2,110)( -
Cash dividends 1,721,210 2.255 2,468,202 3.23
1,902,547$ 2.255$ 2,746,626$ 3.23$
2018 2017
~58~
(23) Operating revenue
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:
2019 2018
Revenue from contracts with customers 13,079,375$ 13,186,351$
Other-service concession revenue 302,090 169,814
$ 13,381,465 $ 13,356,165
2019 2018
Revenue from contracts with customers 26,656,618$ 27,576,477$
Other-service concession revenue 437,305 320,270
$ 27,093,923 $ 27,896,747
For the three-month periods ended June 30,
For the six-month periods ended June 30,
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$
~59~
For the three-month
period ended
June 30, 2018
Construction
Engineering
Revenue Service Revenue
Other Operating
Revenue Total
Total segment
revenue
11,949,212$ 1,064,832$ 172,307$ 13,186,351$
Inter-segment
revenue 600,323 5,769 125,398 731,490
12,549,535$ 1,070,601$ 297,705$ 13,917,841$
Revenue from
external
customer
contracts
Timing of
revenue
recognition
At a point time -$ 1,064,832$ 172,307$ 1,237,139$
Over time 11,949,212 - - 11,949,212
11,949,212$ 1,064,832$ 172,307$ 13,186,351$
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$
~60~
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, 2018
Construction
Engineering
Revenue Service Revenue
Other Operating
Revenue Total
Total segment
revenue
25,204,991$ 2,097,182$ 274,304$ 27,576,477$
Inter-segment
revenue 1,204,317 20,566 244,444 1,469,327
26,409,308$ 2,117,748$ 518,748$ 29,045,804$
Revenue from
external
customer
contracts
Timing of
revenue
recognition
At a point time -$ 2,097,182$ 274,304$ 2,371,486$
Over time 25,204,991 - - 25,204,991
25,204,991$ 2,097,182$ 274,304$ 27,576,477$
June 30, 2019 December 31, 2018 June 30, 2018 January 1, 2018
Contract assets-
construction contract
revenue 18,840,920$ 24,823,432$ 21,707,003$ 23,759,310$
Contract liabilities-
construction contract
revenue 14,196,426)( 13,920,198)( 12,509,386)( 13,880,106)(
4,644,494$ 10,903,234$ 9,197,617$ 9,879,204$
~61~
(24) Other income
(25) Other gains and losses
2019 2018
Interest income:
Interest income from bank deposits 73,665$ 58,204$
Rental revenue 2,700 1,089
Dividend income 128 -
Gains on reversal of bad debts - 128
Other income-others 22,166 15,263
98,659$ 74,684$
2019 2018
Interest income:
Interest income from bank deposits 131,825$ 107,931$
Rental revenue 4,257 2,611
Dividend income 230 -
Gains on reversal of bad debts - 128
Other income-others 37,745 25,263
174,057$ 135,933$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
2019 2018
(Losses) gains on disposal of property, plant and
equipment 1,383)($ 66,860$
Gains on disposal of investments 5,158 64,334
Foreign exchange gains 116,335 135,281
Gains on financial assets at fair value through
profit or loss 26,063 53,524
Other gains and losses 3,616)( 34,093)(
142,557$ 285,906$
2019 2018
(Losses) gains on disposal of property, plant and
equipment 1,353)($ 66,798$
Gains on disposal of investments 5,158 64,420
Foreign exchange gains 116,729 35,208
Gains on financial assets at fair value through
profit or loss 56,214 26,136
Other gains and losses 6,327)( 37,354)(
170,421$ 155,208$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~62~
(26) Finance costs
(27) Expenses by nature
2019 2018
Interest expense
Interest on loan 41,950$ 42,492$
Interest on lease liability 568 -
42,518$ 42,492$
2019 2018
Interest expense
Interest on loan 123,389$ 79,181$
Interest on lease liability 1,186 -
124,575$ 79,181$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
2019 2018
Subcontract costs 4,444,837$ 4,801,096$
Materials 4,532,180 3,967,338
Employee benefit expense 2,159,197 2,111,764
Amortisation charges on buried equipment 118,609 73,124
Temporary equipment 1,562 6,864
Depreciation charges on property, plant and
equipment 139,728 90,752
Amortisation on intangible assets 36,191 36,074
Others 1,581,278 1,885,397
13,013,582$ 12,972,409$
2019 2018
Subcontract costs 9,952,088$ 9,644,188$
Materials 8,575,287 9,293,207
Employee benefit expense 4,394,498 4,259,252
Amortisation charges on buried equipment 219,740 145,535
Temporary equipment 1,566 78,327
Depreciation charges on property, plant and
equipment 282,881 179,778
Amortisation on intangible assets 74,638 77,765
Others 2,621,112 3,118,482
26,121,810$ 26,796,534$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~63~
(28) 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, 2019 and 2018, employees’
compensation was accrued at ($2,863), $7,607, $8,074 and $20,122, respectively; directors’
remuneration was accrued at $4,500, $4,500, $9,000 and $9,000, respectively. The
aforementioned amounts were recognized in other expenses.
The employees’ compensation and directors’ remuneration were estimated and accrued based on
an amount of 1.5% to 5% and not higher than 1.5% of distributable profit of current period for
the six-month period ended June 30, 2019.
Employees’ compensation and directors’ remuneration for 2018 as resolved at the meeting of
Board of Directors were in agreement with those amounts recognized in the 2018 financial
statements.
Information about employees’ compensation and directors’ remuneration of the Company as
resolved at the meeting of Board of Directors will be posted in the “Market Observation Post
System” at the website of the Taiwan Stock Exchange.
2019 2018
Salaries and wages 1,792,114$ 1,790,024$
Employee stock options 97,865 39,930
Labor and health insurance fees 119,780 102,437
Pension costs 87,745 87,379
Other personnel expenses 61,693 91,994
2,159,197$ 2,111,764$
2019 2018
Salaries and wages 3,676,113$ 3,605,402$
Employee stock options 141,783 65,258
Labor and health insurance fees 253,826 240,480
Pension costs 182,386 173,693
Other personnel expenses 140,390 174,419
4,394,498$ 4,259,252$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~64~
(29) Income tax
A. Income tax expense
(a) Components of income tax expense:
(b) The income tax (charge)/credit relating to components of other comprehensive income is as
follows:
2019 2018
Current tax:
Current tax on profits for the period 211,896$ 203,375$
Prior year income tax (over) underestimation 33,830)( 4,635
Total current tax 178,066 208,010
Deferred tax:
Origination and reversal of temporary
differences 72,033)( 83,854)(
Impact of change in tax rate - -
Total deferred tax 72,033)( 83,854)(
Income tax expense 106,033$ 124,156$
2019 2018
Current tax:
Current tax on profits for the period 437,590$ 300,648$
Prior year income tax (over) underestimation 33,830)( 4,635
Total current tax 403,760 305,283
Deferred tax:
Origination and reversal of temporary
differences 164,639)( 10,300)(
Impact of change in tax rate - 16,750
Total deferred tax 164,639)( 6,450
Income tax expense 239,121$ 311,733$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
2019 2018
Impact of change in tax rate -$ -$
2019 2018
Impact of change in tax rate -$ 19,379$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~65~
B. Assessment of income tax
The Company’s income tax returns through 2014 and 2016 have been assessed and approved by
the Tax Authority.
C. The Company’s subsidiary, CTCI Arabia Ltd., was ordered by the local tax authorities to pay
back taxes in the amount of $134,635 (SAR 17,212) for the years 2007 through 2010. CTCI
Arabia Ltd. has appealed the decision and paid tax beforehand in the amount of $134,635 (SAR
17,212) in order to conduct subsequent administrative litigation, therefore it is difficult to assess
the maximum possible loss that CTCI Arabia Ltd. could incur from this tax dispute.
D. Under the amendments to the Income Tax Act which was promulgated by the President of the
Republic of China on February 7, 2018, the Company’s applicable income tax rate was raised
from 17% to 20% effective from January 1, 2018. The Group has assessed the impact of the
change in income tax rate.
(30) Earnings per share
Amount
after tax
Weighted-average
number of ordinary
shares outstanding
(shares in
thousands)
Earnings per share
(in dollars)
Basic earnings per share
Profit attributable to the ordinary
shareholders of the parent272,064$ 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, 2019
~66~
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 parent408,982$ 762,016 0.54NT$
Diluted earnings per share
Assumed conversion of all
dilutive potential ordinary shares
Employees’ compensation - 151
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary shares 408,982$ 762,167 0.54NT$
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 parent493,537$ 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 three-month period ended June 30, 2018
For the six-month period ended June 30, 2019
~67~
(31) Business combinations
A. ECOVE Solvent Recycling Corporation
(a) On May 10, 2018, the Group acquired a 90% equity interest of ECOVE Solvent Recycling
Corporation in the amount of $49,590 in the form of cash, and had control over ECOVE
Solvent Recycling Corporation which is primarily engaged in operating basic chemical
industry and manufacture of other chemical products. As a result of the acquisition, the Group
is expected to increase its presence in these markets. It also expects to reduce costs through
economies of scale.
(b) The following table summarises the consideration paid for ECOVE Solvent Recycling
Corporation and the fair values of the assets acquired and liabilities assumed at the acquisition
date, as well as the non-controlling interest’s proportionate share of the recognized amounts
of acquiree’s identifiable net assets at the acquisition date:
Amount
after tax
Weighted-average
number of ordinary
shares outstanding
(shares in
thousands)
Earnings per share
(in dollars)
Basic earnings per share
Profit attributable to the ordinary
shareholders of the parent727,722$ 762,016 0.95NT$
Diluted earnings per share
Assumed conversion of all
dilutive potential ordinary shares
Employees’ compensation - 438
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary shares 727,722$ 762,454 0.95NT$
For the six-month period ended June 30, 2018
~68~
(c) The operating revenue included in the consolidated statement of comprehensive income since
May 10, 2018 contributed by ECOVE Solvent Recycling Corporation was $0. ECOVE
Solvent Recycling Corporation also contributed loss before income tax of ($7,014) over the
same period. Had ECOVE Solvent Recycling Corporation been consolidated from January 1,
2018, the consolidated statement of comprehensive income would increase operating revenue
by $1,485 and decrease profit before income tax by ($385).
B. ECOVE Solar Energy Corporation
(a) On September 20, 2018, the Group acquired a 50% equity interest of ECOVE Solar Energy
Corporation in the amount of $455,384 by cash, and have control over ECOVE Solar Energy
Corporation.
(b) The following table summarises the consideration paid for ECOVE Solar Energy Corporation
and the fair values of the assets acquired and liabilities assumed at the acquisition date, as
well as the non-controlling interest’s proportionate share of the recognized amounts of
acquiree’s identifiable net assets at the acquisition date:
May 10, 2018
Purchase consideration
Cash paid 49,590$
Non-controlling interest’s proportionate share of the recognised
amounts of acquiree’s identifiable net assets 4,126
53,716
Fair value of the identifiable assets acquired and liabilities assumed
Cash 150
Prepayments 291
Property, plant and equipment 68,492
Other non-current assets 588
Other payables 143)(
Other current liabilities 325)(
Long-term borrowings 27,800)(
Total identifiable net assets 41,253
Goodwill 12,463$
~69~
(c) The operating revenue included in the consolidated statement of comprehensive income since
September 20, 2018 contributed by ECOVE Solar Energy Corporation was $83,600, and the
contributed profit before income tax was $12,047 over the same period. Had ECOVE Solar
Energy Corporation been consolidated from January 1, 2018, the consolidated statement of
comprehensive income would increase operating revenue by $127,316 and profit before
income tax by $32,284.
(d) The fair value of the identifiable property, plant and equipment obtained is tentatively set at
$1,533,559 and the assets are subject to final valuation.
September 20, 2018
Purchase consideration
Cash paid 455,384$
Fair value of equity interest in ECOVE Solar Energy
Corporation held before the business combination 388,193
843,577
Fair value of the identifiable assets acquired and liabilities assumed
Cash 298,165
Accounts receivable 13,501
Other receivables 5,509
Prepayments 29,536
Property, plant and equipment 1,533,559
Deferred income tax assets 1,516
Other non-current assets 721,902
Short-term borrowings 143,000)(
Accounts payable 5,245)(
Current income tax liabilities 8,903)(
Other payables 33,310)(
Other current liabilities 138,880)(
Long-term borrowings 1,376,650)(
Deferred income tax liabilities 2,773)(
Other non-current liabilities 175,040)(
Total identifiable net assets 719,887
Goodwill 123,690$
~70~
(32) Operating leases
Prior to 2018
The Group’s future aggregate minimum lease payments under non-cancellable operating leases are
as follows:
(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 liability from financing activities in 2019 and 2018 included short-term borrowings,
short-term notes and bills payable and long-term loan, the change is the cash flow of financing, etc.
The summary amount is as follows. For the rest of the information, please refer to the cash flow
statement.
December 31, 2018 June 30, 2018
Not later than one year 143,352$ 190,368$
Later than one year but not later than five years 254,239 239,666
Later than five years 370,879 14,195
768,470$ 444,229$
2019 2018
Purchase of property, plant and equipment 423,907$ 79,427$
Add: Opening balance of payable on equipment 1,785,960 -
Less: Ending balance of payable on equipment - -
Cash paid during the period 2,209,867$ 79,427$
2019 2018
Cash dividends 2,250,831$ 2,917,223$
Add: Opening balance of cash dividends payable - -
Less: Ending balance of cash dividends payable 2,113,814)( 2,844,131)(
Cash paid during the period 137,017$ 73,092$
2019
Liabilities from
financing activities-gross
At January 1 14,966,313$
Changes in cash flow from financing activities 699,821)(
At June 30 14,266,492$
~71~
7. RELATED PARTY TRANSACTIONS
(1) Names of related parties and relationship
2018
Liabilities from
financing activities-gross
At January 1 8,804,167$
Changes in cash flow from financing activities 1,336,058
Changes in acquisition of subsidiaries 27,800
At June 30 10,168,025$
Names of related parties Relationship with the Group
Pan Asia Corp. Associate
Boretech Resource Recovery Associate
MIE Industrial Sdn. Bhd. Associate
ZheJiang Boretech Environmental
Engineering Co., Ltd.Associate
Blue Whale Water Technology Corp. Associate
Powertech Energy Corp. Associate
EVER ECOVE CORP. Associate
HDEL-CTCI (Linhai) Associate
ECOVE Solar Energy Corporation The Group was a joint venture before
September 20, 2018, and became a subsidiary
starting from September 20, 2018.
Hsin Dar Environment Corp. Other related party
CTCI Foundation Other related party
CTCI Education Foundation Other related party
Gintech (Thailand) Limited Other related party
ECOVE Central Corporation Ltd. It was a related party before September 20,
2018, and became a subsidiary starting from
September 20, 2018.
ECOVE South Corporation Ltd. It was a related party before September 20,
2018, and became a subsidiary starting from
September 20, 2018.
~72~
(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.
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
2019 2018
Associates 1,035,293$ 258,862$
Joint ventures - 86,770
Other related parties 4,511 2,347
1,039,804$ 347,979$
2019 2018
Associates 1,538,696$ 475,549$
Joint ventures - 159,388
Other related parties 5,620 3,975
1,544,316$ 638,912$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
2019 2018
Associates 197,059$ 340,996$
Other related parties 20,488 15,755
217,547$ 356,751$
2019 2018
Associates 568,843$ 1,327,783$
Other related parties 34,943 19,134
603,786$ 1,346,917$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
June 30, 2019 December 31, 2018 June 30, 2018
Associates 496,773$ 942,076$ 30,087$
Other related parties - 1,995 1,926
496,773$ 944,071$ 32,013$
~73~
D. Accounts payable
E. Rental expense
F. Disposal of financial assets
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) Acquisition of right-of-use assets:
On January 1, 2019 (the date of initial application of IFRS 16), the Group increased right-of-
use assets by $88,886.
June 30, 2019 December 31, 2018 June 30, 2018
Associates 792,220$ 1,359,712$ 873,722$
Lessor Leased assets Rental amount 2019 2018
Other related parties Land / Buildings $698/month/
semiannual
payment-$ 2,093$
Lessor Leased assets Rental amount 2019 2018
Other related parties Land / Buildings $698/month/
semiannual
payment-$ 4,186$
For the three-month periods
ended June 30,
For the six-month periods
ended June 30,
Accounts No. of shares Objects Proceeds Gain/(loss)
Other related parties Financial assets
at fair value
through profit
or loss-non
current
17,556,000 Utech Solar Corp. 132,851$ 64,277$
For the six-month
period ended
June 30, 2018
2019 2018
Other related parties 88,886$ -$
For the six-month periods ended June 30,
~74~
(c) Lease liability
i. Outstanding balance:
ii. Interest expense
H. Provision for endorsements and guarantees
I. The Group donated $15,000 to the CTCI Education Foundation in March, 2018 for personnel
training and enterprise social responsibility.
(3) Key management compensation
June 30, 2019 June 30, 2018
Other related parties 84,988$ -$
2019 2018
Other related parties 288$ -$
For the six-month periods ended June 30,
June 30, 2019 December 31, 2018 June 30, 2018
Associates 3,307,300$ 1,984,300$ 769,300$
Joint ventures - - 719,622
3,307,300$ 1,984,300$ 1,488,922$
2019 2018
Salaries and other short-term employee
benefits
37,158$ 36,124$
Post-employment benefits 872 477
Other long-term benefits 619 205
Share-based payments 4,851 2,803
43,500$ 39,609$
2019 2018
Salaries and other short-term employee
benefits
131,420$ 125,303$
Post-employment benefits 1,131 2,111
Other long-term benefits 1,124 512
Share-based payments 7,576 4,932
141,251$ 132,858$
For the three-month periods ended June 30,
For the six-month periods ended June 30,
~75~
8. PLEDGED ASSETS
9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT
COMMITMENTS
In addition to those items which have been disclosed in Note 6 (29), the significant contingent liabilities
and unrecognized contract commitments of the Group as of June 30, 2019 were as follows:
A. Guarantee
(a) The Group had outstanding notes payable for security deposits under various construction
projects amounting to $6,532,090.
(b) The Group had outstanding notes payable for bank financing amounting to $106,683,078.
B. The Group had unused and outstanding letters of credit of $793,730.
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 $40,526,673.
D. The Group had entered into contracts for acquisition of inventory amounting to $868,000.
Pledged assets June 30, 2019 December 31, 2018 June 30, 2018 Purpose
Other current assets
Guarantee for wages 5,873$ 5,816$ 5,978$ Guarantee for wages
Other non-current assets
Pledged time deposits 164,755 141,948 9,057 Guarantee for oil
expense, litigation
deposits,
construction
contracts and short-
term borrowing
Refundable deposits 138,729 130,167 133,135 Guarantee for oil
expense, rent, golf
certificates, tender
bonds, construction
contracts and
dormitory deposit
Long-term prepaid rent - 16,530 17,683 Guarantee for long-
term borrowings
Property, plant and
equipment
5,890,809 5,937,741 3,831,166 Guarantee for long-
term and short-term
borrowings
Investment property 805,976 808,129 810,390
Guarantee for long-
term and short-term
borrowings
7,006,142$ 7,040,331$ 4,807,409$
Book value
~76~
E. The Company had a joint procurement project with Mitsubishi Heavy Industries, Ltd. in 1996. The
construction was completed on February 19, 2000 and accepted by the Environmental Protection
Administration (the “EPA”) on May 16, 2000. According to the contract, the Company provided
warranty deposit amounting to $141,690 on the materials of the equipment. As the Kaohsiung County
government, the user of the incineration, had a dispute with the operating manufacturer, the EPB
rejected to repay the deposit.
The EPA availed of the warranty deposit on February 4, 2009. As a result, the Company had to remit
$73,253 to the procurement department of Bank of Taiwan Co., Ltd. Consequently, the Company
took action to cancel the deposit of $141,690 on February 6, 2009 and filed a lawsuit requiring EPA
to repay the $73,253. On April 16, 2009, the EPA indicated that it had repaid $9,299, which was the
warranty deposit of $73,253 less actual amounts used of $63,954, to the Company. Therefore, the
Company reduced the lawsuit claim to $63,954 plus interest of $117 and damage loss of $2,421. The
Company won the lawsuit apart from the loss compensation of 1,708. Nonetheless, the EPA appealed
the decision with the High Court, and the appeal was dismissed. The EPA then filed an appeal with
the Supreme Court, which reviewed and remanded the case to the High Court. After serval remands,
the High Court rendered a verdict in 105-Zhong-Shang-Geng-3-11 stating that the EPA should pay
$61,706, which bears an interest at 5% per annum starting from February 19, 2009 to the date of
repayment, to the Company, and denied the request of the Company for the compensation of $3,059.
Accordingly, the Company won the majority of the lawsuits. However, both parties filed appeals to
the third instance for the verdicts that were not in their favor and the case is still pending in the
Supreme Court.
According to the Company’s lawyer, the outcome of the case is still uncertain and the EPA received
an arbitration award as the defence. Thus, it is difficult to estimate any potential gain or loss on the
case.
F. 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 Corporation
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
~77~
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 CTCI SMART ENGINEERING CORP. needs to pay RPTI 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 Group’s claim in bankruptcy. According to the Company’s appointed
lawyers, the case is still pending in the Taiwan High Court, and the case number is Year 2018, Chong-
Shang-Gang-Yi-Zi No. 65.
G. The Company’s subsidiary, ECOVE Environment Services Corp., was ordered to pay $54,267 for air
pollution prevention fees by the Environmental Protection Department of the New Taipei City
Government on October 28, 2014, and the penalty was upheld after filing an administrative appeal.
On July 6, 2015, ECOVE Environment Services Corp. asked the Taipei High Administrative Court
to revoke both the original penalty and the subsequent decision on the administrative appeal, but the
request was denied. ECOVE Environment Services Corp. filed an appeal with the Supreme Court.
On January 31, 2018, the Supreme Court has rendered a judgement that the verdict rendered by the
Taiwan High Court was void and reverted the case back to the Taiwan High Court for a retrial. The
lawyer representing ECOVE Environment Services Corp. regards the original penalty to be illegal
and invalid, therefore no provisions for the lawsuit have been recognized in the financial statements.
~78~
10. SIGNIFICANT DISASTER LOSS
None.
11. SIGNIFICANT SUBSEQUENT EVENTS
None.
12. OTHERS
(1) Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for shareholders and to maintain an optimal capital
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio.
This ratio is calculated as net debt divided by total capital. Total borrowings include ‘current and
non-current borrowings’ as shown in the consolidated balance sheet. Total capital is calculated as
‘equity’ as shown in the consolidated balance sheet.
The gearing ratios as of June 30, 2019, December 31, 2018 and June 30, 2018 were as follows:
June 30, 2019 December 31, 2018 June 30, 2018
Total borrowings 14,266,492$ 14,966,313$ 10,168,025$
Total equity 19,263,594$ 20,626,159$ 19,363,665$
Gearing ratio 74.06% 72.56% 52.51%
~79~
(2) Financial risk of financial instruments
A. Financial instruments by category
June 30, 2019 December 31, 2018 June 30, 2018
Financial assets
Financial assets at fair value through profit
or loss
Financial assets mandatorily measured at
fair value through profit or loss 382,122$ 554,638$ 420,043$
Financial assets at fair value through other
comprehensive income
Designation of equity instrument 1,270,468 1,262,160 1,196,144
Qualifying debit instrument 27,291 26,778 64,195
1,297,759$ 1,288,938$ 1,260,339$
Financial assets at amortised cost
Cash and cash equivalents 17,027,571$ 15,070,992$ 15,318,991$
Notes receivable 109,921 75,006 126,932
Accounts receivable 4,714,762 9,092,332 4,079,928
Accounts receivable due from related
parties 496,773 944,071 32,013
Other receivables 230,637 338,477 158,234
Refundable deposits 138,729 130,167 133,135
Long-term accounts receivable 2,319,445 2,392,339 2,353,698
Other financial assets 244,916 558,950 229,893
25,282,754$ 28,602,334$ 22,432,824$
Financial liabilities
Financial liabilities at fair value through
profit or loss
Financial liabilities mandatorily measured
at fair value through profit or loss 4,487$ 548$ -$
Financial liabilities at amortised cost
Short-term borrowings 10,396,242$ 13,414,459$ 8,047,275$
Short-term notes and bills payable 250,913 - -
Notes payable 22,229 18,788 5,224
Accounts payable 9,664,066 9,991,262 8,610,127
Accounts payable due to related parties 792,220 1,359,712 873,722
Other payables (including related parties) 4,088,570 4,692,516 4,658,235
Lease liability 378,647 - -
Long-term borrowings (including current
portion) 3,619,337 1,551,854 2,120,750
Guarantee deposits received 336,382 407,649 378,517
29,548,606$ 31,436,240$ 24,693,850$
~80~
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.
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.
~81~
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 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
~82~
Foreign Currency
Amount
(In Thousands) Exchange Rate Book Value
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD : NTD 275,169$ 30.7400 8,458,695$
THB : NTD 817,495 0.9491 775,884
EUR : NTD 7,889 35.2327 277,951
USD : MYR 8,888 4.1575 273,217
MOP : NTD 53,270 3.8042 202,650
JPY : NTD 556,648 0.2779 154,692
RMB : NTD 23,979 4.4742 107,287
USD : THB 3,186 32.3886 97,938
SGD : NTD 4,271 22.4552 95,898
THB:USD 71,220 0.0309 67,595
RMB:USD 4,240 0.1455 18,971
USD:SAR 247 3.7523 7,593
SAR:NTD 555 8.1922 4,547
EUR:USD 80 1.1462 2,819
Financial liabilities
Monetary items
USD : SAR 32,700 3.7523 1,005,198
USD : NTD 10,733 30.7400 329,932
USD : MYR 4,298 4.1575 132,121
EUR : MYR 2,297 4.7651 80,930
EUR : NTD 1,316 35.2327 46,366
EUR:USD 1,198 1.1462 42,209
SGD : NTD 537 22.4552 12,064
MOP : NTD 2,723 3.8042 10,359
RMB:NTD 1,764 4.4742 7,892
SAR:NTD 406 8.1922 3,325
USD:SGD 95 1.3689 2,920
December 31, 2018
~83~
v. The unrealized exchange gain (loss) 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, 2019 and 2018 amounted to $129,705, $104,895, $134,193 and $59,275,
respectively.
Foreign Currency
Amount
(In Thousands) Exchange Rate Book Value
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 128,615$ 30.5300 3,926,616$
EUR:NTD 622 35.5384 22,105
JPY:NTD 14,940 0.2758 4,120
THB:NTD 2,317 0.9208 2,133
AUD:NTD 814 22.5388 18,347
MOP:NTD 14,820 3.7716 55,895
SGD:NTD 684 22.3720 15,302
RMB:NTD 22,849 4.5982 105,064
SAR:NTD 726 8.1406 5,910
THB:USD 69,468 0.0302 63,966
RMB:USD 15,868 0.1506 72,964
USD:THB 4,379 33.1560 33,691
USD:SAR 188 3.7503 5,870
USD:MYR 9,570 4.0385 272,360
EUR:USD 193 1.1640 6,859
Financial liabilities
Monetary items
USD:NTD 5,460 30.5300 166,694
EUR:NTD 9,384 35.5384 333,492
JPY:NTD 590,551 0.2758 162,874
SGD:NTD 1,730 22.3720 38,704
THB:NTD 2,061 0.9208 1,898
SEK:NTD 1,320 3.4021 4,491
MOP:NTD 11,937 3.7716 45,022
RMB:NTD 24,575 4.5982 113,001
USD:SAR 42,700 3.7503 1,303,631
JPY:USD 27,000 0.0090 7,447
HKD:USD 46 7.8475 11,021
June 30, 2018
~84~
vi. 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% 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 -
June 30, 2019
Sensitivity Analysis
~85~
Degree of Effect on Profit
Effect on Other
Comprehensive
Variation or Loss Income
( Foreign currency:
functional currency)
Financial assets
Monetary items
USD : NTD 1% $ 84,587 -$
THB : NTD 1% 7,759 -
EUR : NTD 1% 2,780 -
USD : MYR 1% 2,732 -
MOP : NTD 1% 2,027 -
JPY : NTD 1% 1,547 -
RMB : NTD 1% 1,073 -
USD : THB 1% 979 -
SGD : NTD 1% 959 -
THB:USD 1% 676 -
RMB:USD 1% 190 -
USD:SAR 1% 76 -
SAR:NTD 1% 45 -
EUR:USD 1% 28 -
Financial liabilities
Monetary items
USD : SAR 1% 10,052 -
USD : NTD 1% 3,299 -
USD : MYR 1% 1,321 -
EUR : MYR 1% 809 -
EUR : NTD 1% 464 -
EUR:USD 1% 422 -
SGD : NTD 1% 121 -
MOP : NTD 1% 104 -
RMB:NTD 1% 79 -
SAR:NTD 1% 33 -
USD:SGD 1% 29 -
Sensitivity Analysis
December 31, 2018
~86~
Degree of Effect on Profit
Effect on Other
Comprehensive
Variation or Loss Income
( Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 1% $ 39,266 -$
EUR:NTD 1% 221 -
JPY:NTD 1% 41 -
THB:NTD 1% 21 -
AUD:NTD 1% 183 -
MOP:NTD 1% 559 -
SGD:NTD 1% 153 -
RMB:NTD 1% 1,051 -
SAR:NTD 1% 59 -
THB:USD 1% 640 -
RMB:USD 1% 730 -
USD:THB 1% 337 -
USD:SAR 1% 59 -
USD:MYR 1% 2,724 -
EUR:USD 1% 69 -
Financial liabilities
Monetary items
USD:NTD 1% 1,667 -
EUR:NTD 1% 3,335 -
JPY:NTD 1% 1,629 -
SGD:NTD 1% 387 -
THB:NTD 1% 19 -
SEK:NTD 1% 45 -
MOP:NTD 1% 450 -
RMB:NTD 1% 1,130 -
USD:SAR 1% 13,036 -
JPY:USD 1% 74 -
HKD:USD 1% 110 -
June 30, 2018
Sensitivity Analysis
~87~
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, 2019 and 2018,
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 limited is 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.
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, 2019, December 31, 2018 and June 30,
2018, the provision matrix is as follows:
~88~
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, 2019
Expected loss rate 0.03%~0.4% 0.03%~100% 50%~100%
Total book value 2,183,957$ 2,665,486$ 1,090$ 4,850,533$
Loss allowance 2,230)( 22,530)( 1,090)( 25,850)(
December 31, 2018
Expected loss rate 0.03%~0.40% 0.03%~100% 50%~100%
Total book value 4,488,537$ 4,699,248$ 5,148$ 9,192,933$
Loss allowance 2,749)( 19,019)( 3,827)( 25,595)(
June 30, 2018
Expected loss rate 0.03%~0.40% 0.03%~100% 50%~100%
Total book value 2,487,128$ 1,706,435$ 86,958$ 4,280,521$
Loss allowance 4,039)( 12,677)( 56,945)( 73,661)(
2019
Accounts receivable
At January 1 25,595$
Provision for impairment 255
Reversal of impairment -
At June 30 25,850$
2018
Accounts receivable
At January 1_IAS 39 84,920$
Adjustments under new standards -
Provision for impairment 18,289
Reversal of impairment 128)(
Write-offs 29,420)(
At June 30 73,661$
~89~
(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, 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, 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 (including related parties) 4,088,570 -
Lease liabilities 126,174 252,473
Long-term borrowings (including current
portion)225,590 4,406,373
Non-derivative financial liabilities
December 31, 2018 Less than 1 year More than 1 year
Short-term borrowings 13,457,335$ -$
Notes payable 18,788 -
Accounts payable (including related parties) 11,350,974 -
Other payables (including related parties) 4,692,516 -
Long-term borrowings (including current
portion)131,788 1,670,586
Non-derivative financial liabilities
June 30, 2018 Less than 1 year More than 1 year
Short-term borrowings 8,063,436$ -$
Notes payable 5,224 -
Accounts payable (including related parties) 9,483,849 -
Other payables (including related parties) 4,658,235 -
Long-term borrowings (including current
portion)
324,487 2,118,863
~90~
(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.
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.
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
Derivative financial liabilities
Between 3 months
December 31, 2018 Less than 3 months and 1 year
Merchandise exchange contracts $ 548 $ -
~91~
B. The related information of 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 of the nature of the assets and liabilities is as follows:
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
Total 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$
December 31, 2018 Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value
through profit or loss
Beneficiary certificates 504,323$ -$ -$ 504,323$
Derivative instruments - 50,315 - 50,315
Financial assets at fair value
through other comprehensive
income
Equity securities-current 473,549 - - 473,549
Equity securities
-non-current - - 788,611 788,611
Debt securities - 26,778 - 26,778
Total 977,872$ 77,093$ 788,611$ 1,843,576$
Financial liabilities:
Financial liabilities at fair value
through profit or loss
Derivative instruments -$ 548$ -$ 548$
~92~
(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:
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,
2019 and 2018.
D. Movements on Level 3 for the six-month periods ended June 30, 2019 and 2018 are as follows:
E. For the six-month period ended June 30, 2018, there was no transfer into or out from Level 3.
June 30, 2018 Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value
through profit or loss
Beneficiary certificates 378,315$ -$ -$ 378,315$
Derivative instruments - 41,728 - 41,728
Financial assets at fair value
through other comprehensive
income
Equity securities-current 552,082 - - 552,082
Equity securities
-non-current - - 644,062 644,062
Debt securities - 64,195 - 64,195
Total 930,397$ 105,923$ 644,062$ 1,680,382$
Listed shares Open-end fund
Market quoted price Closing price Net asset value
2019 2018
Equity securities Equity securities
At January 1 788,611$ 739,940$
Gains and losses recognised in profit or loss
Recorded as non-operating income and expenses - 49,159
Recorded as unrealised gains (losses) on
valuation of investments in equity
instruments measured at fair value
through other comprehensive income 20,223)( 12,186)(
Sold in the period - 132,851)(
Effects of changes in foreign exchange rates 21 -
At June 30 768,409$ 644,062$
~93~
F. Group finance segment is in charge of valuation procedures for fair value measurements being
categorised 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.
Investment property is valuated regularly by the Group’s Finance segment based on the valuation
methods and assumptions announced by the Financial Supervisory Commission, Securities and
Futures Bureau or through outsourced appraisal performed by the external valuer.
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:
Fair value at
June 30,
2019
Valuation
technique
Significant
unobservable
input
Range (weighted
average)
Relationship of
inputs to fair
value
Non-derivative
equity
instrument:
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
Fair value at
December 31,
2018
Valuation
technique
Significant
unobservable
input
Range (weighted
average)
Relationship of
inputs to fair
value
Non-derivative
equity
instrument:
Unlisted shares 239,615$ Market
comparable
companies
Price to book
ratio multiple,
discount for
lack of
marketability
Median:1.86
Average:1.79
Liquidity discount:
17.5%
The higher the
multiple and
control
premium, the
higher the fair
value
~94~
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 categorised within Level 3 if the inputs used to valuation models
have changed:
Fair value at
June 30,
2018
Valuation
technique
Significant
unobservable
input
Range (weighted
average)
Relationship of
inputs to fair
value
Non-derivative
equity
instrument:
Unlisted shares 254,529$ Market
comparable
companies
Price to book
ratio multiple,
discount for
lack of
marketability
Median:1.87
Average:1.67
Liquidity discount:
23%~45%
The higher the
multiple and
control
premium, the
higher the fair
value
Unlisted shares 389,533 Net assets Not applicable - Not applicable
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)($
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% -$ -$ $ 24,521 ($ 24,521)
June 30, 2019
Recognised in
profit or loss
Recognised in other
comprehensive income
December 31, 2018
Recognised in
profit or loss
Recognised in other
comprehensive income
~95~
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: None.
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 4.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more:
Please refer to table 5.
I. Derivative financial instruments undertaken during the reporting periods: Please refer to Notes
6(2) and 12(2).
J. Significant inter-company transactions during the reporting periods: Please refer to table 6.
(2) Information on investees
Names, locations and other information of investee companies (not including investees in Mainland
China):Please refer to table 7.
Input Change
Favourable
change
Unfavourable
change
Favourable
change
Unfavourable
change
Financial assets
Equity
instrument
Price to book
ratio multiple,
discount for
lack of
marketability
± 1% -$ -$ $ 2,545 ($ 2,545)
Equity
instrument
Not applicable± 1% $ - $ - $ 3,895 ($ 3,895)
June 30, 2018
Recognised in
profit or loss
Recognised in other
comprehensive income
~96~
(3) Information on investments in Mainland China
A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee
companies in the Mainland Area: None.
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:
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
Construction
Engineering
Environmental
Resource Sales Other Operating
Department Department Department Departments Total
External revenues 25,204,991$ 2,374,288$ 68,759$ 248,709$ 27,896,747$
Internal revenues 1,204,317 20,566 - 244,444 1,469,327
Segmental revenues 26,409,308$ 2,394,854$ 68,759$ 493,153$ 29,366,074$
Segmental income 366,814$ 582,006$ 14,469$ 124,686$ 1,087,975$
Depreciation and
amortization 188,373$ 18,129$ 8,639$ 42,402$ 257,543$
For the six-month period ended June 30, 2018
~97~
(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:
2019 2018
Segmental income 966,037$ 1,087,975$
Adjustment and elimination 6,076 12,238
Share of loss of associates and
joint ventures accounted for using equity
method 208,525)( 17,997)(
Interest income 131,825 107,931
Foreign exchange gain 116,729 35,208
Finance costs 124,575)( 79,181)(
Others 95,924 148,002
Income from continuing operations before
income tax 983,491$ 1,294,176$
For the six-month periods ended June 30,
Item Value
0 CTCI Corp. CTCI
Engineering &
Construction
Sdn. Bhd.
Other
receivables
Yes 1,105,930$ 1,086,960$ -$ - 2 - For
operational
need
-$ - -$ 3,271,505$ 6,543,011$ -
0 CTCI Corp. CTCI
Machinery
Corp.
Other
receivables
Yes 650,000 650,000 632,000 1.01% 2 - For
operational
need
- - - 3,271,505 6,543,011 -
0 CTCI Corp. CTCI Arabia
Ltd.
Other
receivables
Yes 1,485,106 1,459,632 1,372,986 2.311%
~2.799%
2 - For
operational
need
- - - 3,271,505 6,543,011 -
0 CTCI Corp. CTCI
Singapore
Pte. Ltd.
Other
receivables
Yes 1,421,910 1,397,520 1,384,527 2.684%
~2.799%
2 - For
operational
need
- - - 3,271,505 6,543,011 -
0 CTCI Corp. CTCI Smart
Engineering
Corp.
Other
receivables
Yes 500,000 500,000 363,000 1.01% 2 - For
operational
need
- - - 3,271,505 6,543,011 -
0 CTCI Corp. CTCI
(Thailand)
Co., Ltd.
Other
receivables
Yes 800,000 800,000 716,248 1.01% 2 - For
operational
need
- - - 3,271,505 6,543,011 -
0 CTCI Corp. CIPEC
Construction
Inc.
Other
receivables
Yes 631,960 621,120 - - 2 - For
operational
need
- - - 3,271,505 6,543,011 -
1 CTCI
Advanced
System Inc.
CTCI Corp. Other
receivables
Yes 45,000 45,000 - - 2 - For
operational
need
- - - 53,442 213,769 -
2 CTCI
Overseas
Co., Ltd.
Superiority
(Thailand)
Co., Ltd.
Other
receivables
Yes 71,803 71,803 71,803 2.520% 2 - For
operational
need
- - - 695,882 695,882 -
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
six-month
period ended
June 30, 2019
(Note 3)
Balance at
June 30, 2019
(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, 2019
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
six-month
period ended
June 30, 2019
(Note 3)
Balance at
June 30, 2019
(Note 8)
Actual amount
drawn down
Interest
rate
Nature of
loan
(Note 4)
Amount of
transactions
with the
borrower
(Note 5)
2 CTCI
Overseas
Co., Ltd.
CIPEC
Construction
Inc.
Other
receivables
Yes 312,472$ 21,491$ 21,480$ 2.625% 2 - For
operational
need
-$ - -$ 695,882$ 695,882$ -
2 CTCI
Overseas
Co., Ltd.
CTCI CMCE
JV SDN.
BHD.
Other
receivables
Yes 37,704 21,739 9,006 3.751% 2 - For
operational
need
- - - 695,882 695,882 -
2 CTCI
Overseas
Co., Ltd.
CTCI
Americas
Inc.
Other
receivables
Yes 129,552 127,330 127,330 2.333%
~2.604%
2 - For
operational
need
- - - 695,882 695,882 -
2 CTCI
Overseas
Co., Ltd.
CCJV P1
Engineering
& Construction
Sdn. Bhd.
Other
receivables
Yes 432,558 357,144 357,144 2.581%
~2.644%
2 - For
operational
need
- - - 695,882 695,882 -
3 CTCI
Overseas
(BVI) Corp.
CIPEC
Construction
Inc.
Other
receivables
Yes 20,811 - - - 2 - For
operational
need
- - - 698,646 698,646 -
4 ECOVE
Environment
Corp.
CTCI Solar
Energy
Corporation
Other
receivables
Yes 200,000 200,000 200,000 1.01% 2 - For
operational
need
- - - 457,868 1,831,470 -
5 ECOVE
Environment
Services
Corp.
ECOVE Solvent
Recycling
Corporation
Other
receivables
Yes 70,000 70,000 55,000 1.01% 2 - For
operational
need
- - - 63,659 254,637 -
5 ECOVE
Environment
Services
Corp.
ECOVE Miaoli
Energy Corp.
Other
receivables
Yes 70,000 70,000 - - 2 - For
operational
need
- - - 63,659 254,637 -
5 ECOVE
Environment
Services
Corp.
CTCI
Machinery
Corp.
Other
receivables
Yes 35,000 30,000 - - 2 - For
operational
need
- - - 63,659 254,637 -
5 ECOVE
Environment
Services
Corp.
CTCI Resources
Engineering
Inc.
Other
receivables
Yes 35,000 - - - 2 - For
operational
need
- - - 63,659 254,637 -
Table 1 Page 2
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
six-month
period ended
June 30, 2019
(Note 3)
Balance at
June 30, 2019
(Note 8)
Actual amount
drawn down
Interest
rate
Nature of
loan
(Note 4)
Amount of
transactions
with the
borrower
(Note 5)
5 ECOVE
Environment
Services
Corp.
CTCI Corp. Other
receivables
Yes 70,000$ 30,000$ -$ - 2 - For
operational
need
-$ - -$ 63,659$ 254,637$ -
5 ECOVE
Environment
Services
Corp.
CTCI Smart
Engineering
Corp.
Other
receivables
Yes 70,000 30,000 - - 2 - For
operational
need
- - - 63,659 254,637 -
6 CTCI Solar
Energy
Corporation
ECOVE
Central
Corporation
Ltd.
Other
receivables
Yes 17,000 17,000 - - 2 - For
operational
need
- - - 287,539 287,539 -
6 CTCI Solar
Energy
Corporation
ECOVE South
Corporation
Ltd.
Other
receivables
Yes 14,000 14,000 14,000 1.71% 2 - For
operational
need
- - - 287,539 287,539 -
6 CTCI Solar
Energy
Corporation
ECOVE Solar
Power
Corporation
Other
receivables
Yes 200,000 156,000 28,000 1.71% 2 - For
operational
need
- - - 287,539 287,539 -
7 ECOVE
Waste
Management
Corp.
CTCI
Machinery
Corp.
Other
receivables
Yes 7,000 7,000 - - 2 - For
operational
need
- - - 6,786 27,144 -
7 ECOVE
Waste
Management
Corp.
CTCI Smart
Engineering
Corp.
Other
receivables
Yes 7,000 7,000 - - 2 - For
operational
need
- - - 6,786 27,144 -
8 CTCI Beijing
Co., Ltd.
CTCI Shanghai
Co., Ltd.
Other
receivables
Yes 275,922 271,080 - - 2 - For
operational
need
- - - 707,341 707,341 -
Table 1 Page 3
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 recognised, 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, 2018
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 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 4
Company name
Relationship
with the
endorser/
guarantor
(Note 2)
0 CTCI Corp. Universal Engineering
(BVI) Corporation
2 49,072,581$ 31,598$ 31,056$ -$ -$ 0.19% 98,145,162$ Y N N -
0 CTCI Corp. CTCI Machinery Corp. 2 49,072,581 4,836,207 4,835,482 4,486,444 - 29.56% 98,145,162 Y N N -
0 CTCI Corp. CTCI Development Corp. 2 49,072,581 500,000 500,000 - - 3.06% 98,145,162 Y N N -
0 CTCI Corp. CTCI Americas, Inc. 2 49,072,581 1,441,912 1,417,179 120,625 - 8.66% 98,145,162 Y N N -
0 CTCI Corp. CTCI Engineering &
Construction Sdn. Bhd.
2 49,072,581 1,857,034 1,844,146 1,409,362 - 11.27% 98,145,162 Y N N -
0 CTCI Corp. CTCI Singapore Pte. Ltd. 2 49,072,581 2,518,062 2,481,908 164,559 - 15.17% 98,145,162 Y N N -
0 CTCI Corp. CINDA Engineering &
Construction Pvt. Ltd.
2 49,072,581 3,095,856 3,072,010 1,472,556 - 18.78% 98,145,162 Y N N -
0 CTCI Corp. CTCI Arabia Ltd. 2 49,072,581 3,797,435 3,640,956 2,004,783 - 22.26% 98,145,162 Y N N -
0 CTCI Corp. CTCI Overseas Co., Ltd. 2 49,072,581 4,956,543 4,872,910 1,414,508 - 29.79% 98,145,162 Y N N -
0 CTCI Corp. CTCI Trading
Shanghai Co., Ltd.
2 49,072,581 161,239 86,957 - - 0.53% 98,145,162 Y N Y -
0 CTCI Corp. CTCI Shanghai Co., Ltd. 2 49,072,581 1,035,737 1,035,737 233,943 - 6.33% 98,145,162 Y N Y -
0 CTCI Corp. CTCI Beijing Co., Ltd. 2 49,072,581 1,096,232 1,078,662 567,542 - 6.59% 98,145,162 Y N Y -
0 CTCI Corp. CCJV P1 E&C Sdn. Bhd. 2 49,072,581 1,248,121 1,226,712 280,975 - 7.50% 98,145,162 Y N N -
0 CTCI Corp. CTCI Smart Engineering
Corp.
2 49,072,581 29,623 29,115 - - 0.18% 98,145,162 Y 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, 2019
(Note 5)
CTCI Corporation and its subsidiaries
Provision of endorsements and guarantees to others
For the six-month period ended June 30, 2019
Table 2 Expressed in thousands of NTD
(Except as otherwise indicated)
Number
(Note 1)
Endorser/
guarantor
Party being
endorsed/guaranteedLimit on
endorsements/
guarantees
provided for
a single party
(Note 3)
Maximum
outstanding
endorsement/
guarantee
amount as of
June 30, 2019
(Note 4)
Provision of
endorsement
s/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, 2019
(Note 5)
Number
(Note 1)
Endorser/
guarantor
Party being
endorsed/guaranteedLimit on
endorsements/
guarantees
provided for
a single party
(Note 3)
Maximum
outstanding
endorsement/
guarantee
amount as of
June 30, 2019
(Note 4)
Provision of
endorsement
s/guarantees
to the party
in Mainland
China
(Note 7) Footnote
Actual amount
drawn down
(Note 6)
0 CTCI Corp. CTCI (Thailand) Co.,
Ltd.
2 49,072,581$ 1,980,826$ 1,980,826$ 445,602$ -$ 12.11% 98,145,162$ Y N N -
0 CTCI Corp. CTCI Chemical Corp. 2 49,072,581 20,144 19,798 12,096 - 0.12% 98,145,162 Y N N -
0 CTCI Corp. CTCI-HDEC (Chungli)
Corporation
6 49,072,581 102,000 102,000 102,000 - 0.62% 98,145,162 Y N N -
0 CTCI Corp. CB&I-CTCI B.V. 6 49,072,581 6,695,578 6,580,729 6,580,729 - 40.23% 98,145,162 N N N -
0 CTCI Corp. Blue Whale Water
Technology Co., Ltd.
6 49,072,581 769,300 769,300 673,260 - 4.70% 98,145,162 N N N -
0 CTCI Corp. HDEC-CTCI (Linhai)
Corporation
6 49,072,581 1,215,000 1,215,000 180,000 - 7.43% 98,145,162 N N N -
0 CTCI Corp. CIPEC Construction Inc. 2 49,072,581 527,099 525,520 318,982 - 3.21% 98,145,162 Y N N -
0 CTCI Corp. EVER ECOVE Corp. 6 49,072,581 1,102,500 1,102,500 87,500 - 6.74% 98,145,162 N N N -
0 CTCI Corp. CTCI Malaysia Sdn. Bhd. 2 49,072,581 853,146 838,512 15,747 - 5.13% 98,145,162 Y N N -
0 CTCI Corp. CTCI CMCE JV
SDN. BHD.
6 49,072,581 470,254 - - - - 98,145,162 N N N -
1 CTCI
Advanced
System Inc.
Century Ahead Ltd. 2 534,423 18,959 18,634 - - 3.49% 1,068,846 N N N -
2 CTCI
Machinery
Corp.
CTCI Smart Engineering
Corp.
5 1,441,303 560,000 560,000 560,000 - 116.56% 2,882,607 N N N -
3 CTCI
Chemical
Corp.
CTCI Machinery Corp. 5 716,009 532,830 532,830 532,830 - 223.25% 1,432,019 N N N -
3 CTCI
Chemical
Corp.
CTCI Corp. 3 716,009 18,817 18,817 18,817 - 7.88% 1,432,019 N Y N -
Table 2 Page 2
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, 2019
(Note 5)
Number
(Note 1)
Endorser/
guarantor
Party being
endorsed/guaranteedLimit on
endorsements/
guarantees
provided for
a single party
(Note 3)
Maximum
outstanding
endorsement/
guarantee
amount as of
June 30, 2019
(Note 4)
Provision of
endorsement
s/guarantees
to the party
in Mainland
China
(Note 7) Footnote
Actual amount
drawn down
(Note 6)
4 CTCI
Shanghai
Co., Ltd.
CTCI Trading Shanghai
Co., Ltd.
2 1,510,571$ 68,981$ 67,770$ 67,770$ -$ 13.46% 3,021,141$ N N Y -
5 CTCI
Resources
Engineering
Inc.
CTCI Smart Engineering
Corp.
5 867,506 267,102 267,102 267,102 - 92.37% 1,735,011 N N N -
6 ECOVE
Environment
Corp.
ECOVE Solar Power
Corporation
2 9,157,352 317,000 317,000 200,099 - 6.92% 13,736,028 N N N -
6 ECOVE
Environment
Corp.
ECOVE South
Corporation Ltd.
2 9,157,352 150,000 150,000 - - 3.28% 13,736,028 N N N -
6 ECOVE
Environment
Corp.
ECOVE Solar
Energy Corporation
2 9,157,352 1,927,353 1,927,353 1,335,643 - 42.09% 13,736,028 N N N -
6 ECOVE
Environment
Corp.
ECOVE Solvent
Recycling Corporation
2 9,157,352 155,800 155,800 42,000 - 3.40% 13,736,028 N N N -
6 ECOVE
Environment
Corp.
EVER ECOVE Corp. 6 9,157,352 220,500 220,500 17,500 - 4.82% 13,736,028 N N N -
7 ECOVE Solar
Energy
Corporation
ECOVE South
Corporation Ltd.
2 2,875,392 14,000 14,000 13,300 - 1.95% 4,313,088 N N N -
7 ECOVE Solar
Energy
Corporation
ECOVE Central
Corporation Ltd.
2 2,875,392 16,790 16,790 15,990 - 2.34% 4,313,088 N N N -
7 ECOVE Solar
Energy
Corporation
ECOVE Solar Power
Corporation
2 2,875,392 784,076 784,076 528,822 - 109.07% 4,313,088 N N N -
8 ECOVE Solar
Power
Corporation
ECOVE Solar Energy
Corporation
3 816,246 12,420 12,420 12,420 - 6.09% 1,224,369 N N N -
Table 2 Page 3
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 six categories; fill in the number of category each case belongs to:
(1)Having business relationship.
(2)The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3)The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed 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 audited 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 audited 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 audited 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 audited by accountant.
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
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 4
Type of
marketable
securities Name of Investee company
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market value
CTCI Corp. Fund BlackRock Global Fund - European
Value Fund A2 USD Hedged
N/A Financial assets at fair value
through profit or loss-current
12,438 4,602$ - 4,442$ -
CTCI Corp. Fund Fubon US Preferred Stock ETF N/A Financial assets at fair value
through profit or loss-current
500,000 10,000 - 9,975 -
14,602 14,417$
Adjustment 185)(
14,417$
CTCI Corp. Common Stock China Steel Chemical Corp. The Company is the
supervisor
Financial asset at fair value
through other comprehensive
income-current
1,726,916 96,713$ - 233,134$ -
CTCI Corp. Common Stock United Renewable Energy Co., Ltd. N/A Financial asset at fair value
through other comprehensive
income-current
644,015 6,505 - 6,247 -
CTCI Corp. Common Stock Taiwan Cement Corp. N/A Financial asset at fair value
through other comprehensive
income-current
1,980,000 68,448 - 90,189 -
171,666 329,570$
Adjustment 157,904
329,570$
Table 3 Expressed in thousands of NTD
(Except as otherwise indicated)
Securities held by
(Note 1)
Relationship with the
securities issuer
(Note 2)
General
ledger account
As of June 30, 2019
Footnote
(Note 4)
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, 2019
Table 3 Page 1
Type of
marketable
securities Name of Investee company
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market valueSecurities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Footnote
(Note 4)
CTCI Corp. Common Stock Core Pacific City Co., Ltd. N/A Financial assets at fair value
through other comprehensive
income-non-current
22,428,000 360,000$ 2.26 219,392$ -
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 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. N/A Financial assets at fair value
through other comprehensive
income-non-current
9,440,000 292,225 2.62 292,225 -
CTCI Corp. Common Stock Heng Keng Corp. N/A Financial assets at fair value
through other comprehensive
income-non-current
20,000 3,000 5.12 - -
908,225 764,617$
Less: Accumulated impairment 143,608)(
764,617$
CTCI Investment
Corporation
Fund Franklin Templeton Sinoam Money
Market Fund
N/A Financial assets at fair value
through profit or loss-current
671,211 6,946$ - 6,946$ -
CTCI Investment
Corporation
Common Stock United Renewable Energy Co., Ltd. N/A Financial asset at fair value
through other comprehensive
income-current
69,030 670 - 670 -
CTCI Investment
Corporation
Common Stock CTCI Corp. The Company Financial assets at fair value
through other comprehensive
income-non-current
344,436 16,051 0.05 16,051 -
CTCI Investment
Corporation
Common Stock Global Strategic Investment Inc. N/A Financial assets at fair value
through other comprehensive
income-non-current
283,500 962 0.65 962 -
Table 3 Page 2
Type of
marketable
securities Name of Investee company
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market valueSecurities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Footnote
(Note 4)
CTCI Development
Corp.
Common Stock CTCI Corp. The Company Financial assets at fair value
through other comprehensive
income-non-current
912,170 42,507$ 0.12 42,507$ -
CTCI Development
Corp.
Common Stock CTCI Advanced System Inc. Subsidiary Financial assets at fair value
through other comprehensive
income-non-current
324,417 14,096 1.38 14,096 -
CTCI Development
Corp.
Common Stock United Renewable Energy Co., Ltd. N/A Financial asset at fair value
through other comprehensive
income-current
173,010 1,678 - 1,678 -
CTCI Development
Corp.
Fund FSITC Money Market N/A Financial assets at fair value
through profit or loss-current
135,024 24,118 - 24,118 -
CTCI Resources
Engineering Inc.
Common Stock United Renewable Energy Co., Ltd. N/A Financial asset at fair value
through other comprehensive
income-current
291,080 2,823 - 2,823 -
CTCI Resources
Engineering Inc.
Common Stock Global Strategic Investment Inc. N/A Financial assets at fair value
through other comprehensive
income-non-current
567,000 1,924 1.29 1,924 -
CTCI Resources
Engineering Inc.
Fund Yuanta De-Li Money Market Fund N/A Financial assets at fair value
through profit or loss-current
3,371,941 55,045 - 55,045 -
CTCI Resources
Engineering Inc.
Fund Taishin 1699 Money Market Fund N/A Financial assets at fair value
through profit or loss-current
3,328,669 45,085 - 45,085 -
ECOVE Waste
Management
Corporation
Fund Taishin 1699 Money Market Fund N/A Financial assets at fair value
through profit or loss-current
3,234,775 43,815 - 43,815 -
ECOVE Waste
Management
Corporation
Fund Franklin Templeton Sinoam Money
Market Fund
N/A Financial assets at fair value
through profit or loss-current
630,309 6,523 - 6,523 -
ECOVE Waste
Management
Corporation
Common Stock Taiwan Cement Corp. N/A Financial asset at fair value
through other comprehensive
income-current
478,841 21,811 - 21,811 -
Table 3 Page 3
Type of
marketable
securities Name of Investee company
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market valueSecurities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Footnote
(Note 4)
ECOVE Wujih
Energy
Corporation
Fund FSITC Money Market N/A Financial assets at fair value
through profit or loss-current
37,981 6,784$ - 6,784$ -
ECOVE Wujih
Energy
Corporation
Common Stock Taiwan Cement Corp. N/A Financial asset at fair value
through other comprehensive
income-current
475,508 21,659 - 21,659 -
ECOVE
Environment
Corp.
Common Stock Taiwan Cement Corp. N/A Financial asset at fair value
through other comprehensive
income-current
472,758 21,534 - 21,534 -
ECOVE
Environment
Corp.
Fund FSITC Money Market N/A Financial assets at fair value
through profit or loss-current
56,070 10,015 - 10,015 -
ECOVE
Environment
Corp.
Common Stock United Renewable Energy Co., Ltd. N/A Financial asset at fair value
through other comprehensive
income-current
116,157 1,127 - 1,127 -
ECOVE
Environment
Corp.
Common Stock TeamWIN Opto-Electronics
Co., Ltd.
N/A Financial assets at fair value
through other comprehensive
income-non-current
150,000 475 2.46 475 -
ECOVE
Environment
Corp.
Common Stock Eastern Pacific Energy Sdn. Bhd. ECOVE Environment
Corp.'s President is the
director
Financial assets at fair value
through other comprehensive
income-non-current
10,000 68 10.00 68 -
ECOVE
Environmental
Services
Corporation
Common Stock CTCI Corp. The Company Financial asset at fair value
through other comprehensive
income-current
1,028 48 - 48 -
ECOVE
Environmental
Services
Corporation
Common Stock Taiwan Cement Corp. N/A Financial asset at fair value
through other comprehensive
income-current
1,251,971 57,027 - 57,027 -
ECOVE
Environmental
Services
Corporation
Common Stock United Renewable Energy Co., Ltd. N/A Financial asset at fair value
through other comprehensive
income-current
145,567 1,412 - 1,412 -
Table 3 Page 4
Type of
marketable
securities Name of Investee company
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market valueSecurities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Footnote
(Note 4)
ECOVE
Environmental
Services
Corporation
Fund Schroder 2022 Maturity Emerging Market
Quality Sovereign Bond Fund
N/A Financial assets at fair value
through profit or loss-current
35,000 11,350$ - 11,350$ -
ECOVE
Environmental
Services
Corporation
Fund Taishin 1699 Money Market Fund N/A Financial assets at fair value
through profit or loss-current
4,441,844 60,164 - 60,164 -
ECOVE
Environmental
Services
Corporation
Fund Yuanta De-Li Money Market Fund N/A Financial assets at fair value
through profit or loss-current
1,227,267 20,034 - 20,034 -
ECOVE Mioali
Energy
Corporation
Fund FSITC Taiwan Money Market N/A Financial assets at fair value
through profit or loss-current
130,559 2,000 - 2,000 -
ECOVE Mioali
Energy
Corporation
Fund FSITC Money Market N/A Financial assets at fair value
through profit or loss-current
39,259 7,012 - 7,012 -
CTCI (Thailand)
Co., Ltd.
Common Stock CHIYODA(Thailand) Co. Ltd. N/A Financial assets at fair value
through other comprehensive
income-non-current
3,600 363 9.00 363 -
Crown Asia-2
Investment Limited
Common Stock CTCI Corp. The Company Financial assets at fair value
through other comprehensive
income-non-current
500 23 - 23 -
CTCI Advanced
System Inc.
Fund FSITC Taiwan Money Market N/A Financial assets at fair value
through profit or loss-current
718,669 11,010 - 11,010 -
CTCI Advanced
System Inc.
Fund FSITC Money Market N/A Financial assets at fair value
through profit or loss-current
252,060 45,023 - 45,023 -
Table 3 Page 5
Type of
marketable
securities Name of Investee company
Number of shares/
denominations
Book value
(Note 3)
Ownership
(%) Market valueSecurities held by
Relationship with the
securities issuer
(Note 2)
General
ledger account
Footnote
(Note 4)
CTCI Advanced
System Inc.
Common Stock Taiwan Cement Corp. N/A Financial asset at fair value
through other comprehensive
income-current
908,578 41,386$ - 41,386$ -
CTCI Advanced
System Inc.
Common Stock United Renewable Energy Co., Ltd. N/A Financial asset at fair value
through other comprehensive
income-current
140,430 1,362 - 1,362 -
CTCI Advanced
System Inc.
Bonds BANK OF CHINA LTD PARIS N/A Financial asset at fair value
through other comprehensive
income-current
6,000,000 27,291 - 27,291 Note 5
Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities in accordance with IAS 39, ‘Financial instruments: recognition and measurement’.
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill in the book value without deduction of allowance for valuation loss of the marketable securities.
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.
Note 5: The book value of bonds denominated in CNY.
Table 3 Page 6
Purchases (sales) Amount
Percentage of
total purchases
(sales) Credit term Unit price Credit term Balance
Percentage of
total notes/accounts
receivable (payable)
ECOVE Environmental
Services Corporation
ECOVE Waste
Management
Corporation
Second-tier subsidiary (Sales) 319,846)($ 1.18% )(
30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
108,889$ 2.09% -
ECOVE Environmental
Services Corporation
ECOVE Wujih Energy
Corporation
Second-tier subsidiary (Sales) 121,275)( 0.45% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
83,370 1.60% -
ECOVE Wujih Energy
Corporation
ECOVE Waste
Management
Corporation
Second-tier subsidiary (Sales) 215,885)( 0.80% )(
30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
85,235 1.64% -
CTCI Corp. CTCI Overseas Co., Ltd. Subsidiary (Sales) 453,324)( 1.67% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
87,050 1.67% -
CTCI Corp. EVER ECOVE Corp. Associate (Sales) 447,659)( 1.65% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
826 0.02% -
CTCI Corp. Blue Whale Water
Technology Co., Ltd.
Associate (Sales) 108,744)( 0.40% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
1,047 0.02% -
CTCI Advanced System
Inc.
CTCI Corp. The Company (Sales) 116,498)( 0.43% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
41,581 0.80% -
CTCI Development Corp. CTCI Corp. The Company (Sales) 154,318)( 0.57% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
- - -
CTCI Engineering &
Construction Sdn. Bhd.
MIE INDUSTRIAL
SDN. BHD.
Associate (Sales) 880,854)( 3.25% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
494,212 9.48% -
CTCI Engineering &
Construction Sdn. Bhd.
CCJV P1 Engineering
& Construction Sdn.
Bhd.
Subsidiary (Sales) 212,802)( 0.79% )(
30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
189,974 3.65% -
ECOVE Wujih Energy
Corporation
ECOVE Environmental
Services Corporation
Second-tier subsidiary Purchases 121,275 0.48% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
83,370)( 0.85% )( -
ECOVE Waste Management
Corporation
ECOVE Environmental
Services Corporation
Second-tier subsidiary Purchases 319,846 1.27% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
108,889)( 1.12% )( -
ECOVE Waste Management
Corporation
ECOVE Wujih Energy
Corporation
Second-tier subsidiary Purchases 215,885 0.85% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
85,235)( 0.87% )( -
CTCI Corporation and its subsidiaries
Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more
For the six-month period ended June 30, 2019
Table 4 Expressed in thousands of NTD
(Except as otherwise indicated)
Notes/accounts receivable (payable)
FootnotePurchaser/seller Counterparty
Relationship with the
counterparty
Transaction
Differences in transaction terms
compared to third party
transaction
Table 4 Page 1
Purchases (sales) Amount
Percentage of
total purchases
(sales) Credit term Unit price Credit term Balance
Percentage of
total notes/accounts
receivable (payable)
Notes/accounts receivable (payable)
FootnotePurchaser/seller Counterparty
Relationship with the
counterparty
Transaction
Differences in transaction terms
compared to third party
transaction
CTCI Corp. CTCI Advanced
System Inc.
Subsidiary Purchases 116,498$ 0.46% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
41,581)($ 0.43% )( -
CTCI Corp. CTCI Development Corp. Subsidiary Purchases 154,318 0.61% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
- - -
CTCI Overseas Co., Ltd. CTCI Corp. The Company Purchases 453,324 1.79% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
87,050)( 0.89% )( -
CTCI Engineering
& Construction Sdn. Bhd.
MIE INDUSTRIAL
SDN. BHD.
Associate Purchases 411,310 1.63% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
333,789)( 3.42% )( -
CCJV P1 E&C SDN. BHD. MIE INDUSTRIAL
SDN. BHD.
Associate Purchases 157,504 0.62% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
368,866)( 3.78% )( -
CCJV P1 Engineering &
Construction Sdn. Bhd.
CTCI Engineering &
Construction Sdn. Bhd.
Subsidiary Purchases 212,802 0.84% )( 30 days after
seasonal billings
Negotiated by both
parties
No significant
difference
189,974)( 1.95% )( -
Table 4 Page 2
Table 5
Amount Action taken
CTCI Corp. CTCI Machinery Corp. Subsidiary 632,000$ Note -$ - -$ -
CTCI Corp. CTCI Arabia Ltd. Subsidiary 1,372,986 Note - - - -
CTCI Corp. CTCI Singapore Pte. Ltd. Subsidiary 1,384,527 Note - - - -
CTCI Corp. CTCI Smart Engineering
Corp. Subsidiary363,000
Note- - - -
CTCI Corp. CTCI (Thailand ) Co., Ltd. Subsidiary 716,248 Note - - - -
CTCI Corp. CTCI CMCE JV SDN. BHD. Subsidiary 121,826 0.06 - Active collection - -
ECOVE Environment Corp. ECOVE Solar Energy Corporation Second-tier subsidiary 200,000 Note - - - -
CTCI Overseas Co., Ltd. CCJV P1 Engineering &
Construction Sdn. Bhd. Subsidiary357,144
Note- - - -
CTCI Overseas Co., Ltd. CTCI Americas Inc.Subsidiary
127,330 Note
- - - -
CTCI Engineering & Construction
Sdn. Bhd.
MIE INDUSTRIAL SDN. BHD.Associate
494,212 3.33 - - - -
ECOVE Environmental
Services Corporation
ECOVE Waste Management
Corporation Second-tier subsidiary108,889 3.06 - Active collection - -
CTCI Engineering & Construction
Sdn. Bhd.
CCJV P1 Engineering &
Construction Sdn. Bhd. Subsidiary189,974 3.30 - - - -
Note:Other accounts receivable arise from lending capital.
CTCI Corporation and its subsidiaries
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more
For the six-month period ended June 30, 2019
Expressed in thousands of NTD
(Except as otherwise indicated)
Amount collected
subsequent to the
balance sheet date
Allowance for
doubtful accounts Creditor Counterparty
Relationship
with the counterparty
Balance as at
June 30, 2019 Turnover rate
Overdue receivables
Table 5 Page 1
General ledger
account Amount Transaction terms
Percentage of consolidated total
operating revenues or total assets
(Note 3)
0 CTCI Corp. CTCI Overseas Co., Ltd. 1 Sales revenue 453,324$ Negotiated by both
parties
1.67%
1 ECOVE Environmental Services
Corporation
ECOVE Waste Management Corporation 3 Sales revenue 319,846 Negotiated by both
parties
1.18%
1 ECOVE Environmental Services
Corporation
ECOVE Wujih Energy Corporation 3 Sales revenue 121,275 Negotiated by both
parties
0.45%
2 ECOVE Wujih Energy Corporation ECOVE Waste Management Corporation 3 Sales revenue 215,885 Negotiated by both
parties
0.80%
3 CTCI Advanced System
Inc.
CTCI Corp. 2 Sales revenue 116,498 Negotiated by both
parties
0.43%
4 CTCI Development Corp. CTCI Corp. 2 Sales revenue 154,318 Negotiated by both
parties
0.57%
12 CTCI Engineering & Construction
Sdn. Bhd.
CCJV P1 Engineering & Construction Sdn. Bhd. 3 Sales revenue 212,802 Negotiated by both
parties
0.79%
1 ECOVE Environmental Services
Corporation
ECOVE Waste Management Corporation 3 Accounts
receivable
108,889 Negotiated by both
parties
0.16%
12 CTCI Engineering & Construction
Sdn. Bhd.
CCJV P1 Engineering & Construction Sdn. Bhd. 3 Accounts
receivable
189,974 Negotiated by both
parties
0.28%
0 CTCI Corp. CTCI CMCE JV SDN. BHD. 3 Accounts
receivable
121,826 Negotiated by both
parties
0.18%
0 CTCI Corp. CTCI Machinery Corp. 1 Other receivables 632,000 Negotiated by both
parties
0.92%
0 CTCI Corp. CTCI (Thailand ) Co., Ltd. 1 Other receivables 716,248 Negotiated by both
parties
1.05%
CTCI Corporation and its subsidiaries
Significant inter-company transactions during the reporting period
For the six-month period ended June 30, 2019
Table 6 Expressed in thousands of NTD
(Except as otherwise indicated)
Number
(Note 1) Company name Counterparty
Relationship
(Note 2)
Transaction
Table 6 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 Arabia Ltd. 1 Other receivables 1,372,986$ Negotiated by both
parties
2.00%
0 CTCI Corp. CTCI Singapore Pte. Ltd. 1 Other receivables 1,384,527 Negotiated by both
parties
2.02%
0 CTCI Corp. CTCI Smart Engineering Corp. 1 Other receivables 363,000 Negotiated by both
parties
0.53%
5 ECOVE Environment Corp. ECOVE Solar Energy Corporation 3 Other receivables 200,000 Negotiated by both
parties
0.29%
6 CTCI Overseas Co., Ltd. CCJV P1 Engineering & Construction Sdn. Bhd. 3 Other receivables 357,144 Negotiated by both
parties
0.52%
6 CTCI Overseas Co., Ltd. CTCI Americas Inc. 3 Other receivables 127,330 Negotiated by both
parties
0.19%
0 CTCI Corp. CTCI Overseas (BVI) Co. and its subsidiaries. 1 Advance
construction
receipt
5,795,050 Negotiated by both
parties
8.46%
7 CTCI Machinery Corp. CTCI Corp. 2 Advance
construction
receipt
3,335,759 Negotiated by both
parties
4.87%
8 CTCI Resources Engineering Inc. CTCI Corp. 2 Advance
construction
receipt
252,390 Negotiated by both
parties
0.37%
9 CTCI (Thailand ) Co., Ltd. CTCI Corp. 2 Advance
construction
receipt
720,506 Negotiated by both
parties
1.05%
0 CTCI Corp. CTCI Development Corp. 1 Refundable
deposits
128,300 Negotiated by both
parties
0.19%
0 CTCI Corp. CTCI Machinery Corp. 1 Guarantee 4,835,482 Not applicable Not applicable
0 CTCI Corp. CTCI Development Corp. 1 Guarantee 500,000 Not applicable Not applicable
0 CTCI Corp. CTCI Americas, Inc. 1 Guarantee 1,417,179 Not applicable Not applicable
0 CTCI Corp. CTCI Engineering & Construction Sdn. Bhd. 1 Guarantee 1,844,146 Not applicable Not applicable
Table 6 Page 2
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 Singapore Pte. Ltd. 1 Guarantee 2,481,908$ Not applicable Not applicable
0 CTCI Corp. CINDA Engineering & Construction Pvt. Ltd. 1 Guarantee 3,072,010 Not applicable Not applicable
0 CTCI Corp. CTCI Arabia Ltd. 1 Guarantee 3,640,956 Not applicable Not applicable
0 CTCI Corp. CTCI Overseas Co., Ltd. 1 Guarantee 4,872,910 Not applicable Not applicable
0 CTCI Corp. CTCI Shanghai Co., Ltd. 1 Guarantee 1,035,737 Not applicable Not applicable
0 CTCI Corp. CTCI Beijing Co., Ltd. 1 Guarantee 1,078,662 Not applicable Not applicable
0 CTCI Corp. CCJV P1 E&C Sdn. Bhd. 1 Guarantee 1,226,712 Not applicable Not applicable
0 CTCI Corp. CTCI (Thailand) Co., Ltd. 1 Guarantee 1,980,826 Not applicable Not applicable
0 CTCI Corp. CTCI-HDEC (Chungli) Corporation 1 Guarantee 102,000 Not applicable Not applicable
0 CTCI Corp. CIPEC Construction Inc. 1 Guarantee 525,520 Not applicable Not applicable
0 CTCI Corp. CTCI Malaysia Sdn. Bhd. 1 Guarantee 838,512 Not applicable Not applicable
7 CTCI Machinery Corp. CTCI Smart Engineering Corp. 3 Guarantee 560,000 Not applicable Not applicable
10 CTCI Chemical Corp. CTCI Machinery Corp. 3 Guarantee 532,830 Not applicable Not applicable
8 CTCI Resources Engineering Inc. CTCI Smart Engineering Corp. 3 Guarantee 267,102 Not applicable Not applicable
5 ECOVE Environment Corp. ECOVE Solar Power Corporation 3 Guarantee 317,000 Not applicable Not applicable
5 ECOVE Environment Corp. ECOVE South Corporation Ltd. 3 Guarantee 150,000 Not applicable Not applicable
5 ECOVE Environment Corp. ECOVE Solar Energy Corporation 3 Guarantee 1,927,353 Not applicable Not applicable
5 ECOVE Environment Corp. ECOVE Solvent Recycling Corporation 3 Guarantee 155,800 Not applicable Not applicable
11 ECOVE Solar Energy Corporation ECOVE Solar Power Corporation 3 Guarantee 784,076 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.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on
accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.
Table 6 Page 3
Balance as at
June 30, 2019
Balance as at
December 31, 2018 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 $ 14,245 ($ 148,303) ($ 143,987) A subsidiary
CTCI Corp. CTCI Resources
Engineering Inc.
Taiwan Mining of geology, sea oil
and gas, marbal and
rare;planning, design,
monitor of civil, traffic
environment and various
mechanical and
electrical equipment.
262,649 262,649 24,762,252 99.05 327,985 48,751 44,861 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 48.72 260,371 42,663 20,786 A subsidiary
CTCI Corp. CTCI Development
Corp.
Taiwan Real estate and leasing
business.
1,870,000 1,690,000 187,000,000 100.00 2,772,722 60,613 60,613 A subsidiary
CTCI Corp. CTCI Investment
Corporation
Taiwan General investment. 2,072,000 2,072,000 207,200,000 100.00 1,559,342 ( 170,969) ( 170,969) A subsidiary
CTCI Corp. ECOVE Environment
Corp.
Taiwan General investment. 938,889 938,889 38,457,105 57.31 2,624,039 402,616 230,730 A subsidiary
CTCI Corp. CTCI (Thailand)
Co., Ltd.
Thailand Design and building of
petrochemical plant.
116,894 116,894 1,249,500 49.00 ( 186,373) ( 493,367) ( 241,750) A subsidiary
CTCI Corporation and its subsidiaries
Information on investees (not including investees in Mainland China)
For the six-month period ended June 30, 2019
Table 7 Expressed in thousands of NTD
(Except as otherwise indicated)
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
Table 7 Page 1
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
CTCI Corp. CTCI Machinery
Corp.
Taiwan Secondary processing
of steel, piping, heat
treatment, manufacture
of pollution control
equipment and non-
destructive testing, etc.
$ 293,800 $ 293,800 20,000,000 100.00 $ 469,805 $ 37,234 $ 37,234 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 ( 568,335) 1,190 595 A subsidiary
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 37,158 100,094 30,028 A subsidiary
CTCI Corp. CTCI Singapore Pte.
Ltd.
Singapore Investment and planning
of related engineering.
152,254 152,254 5,100,000 100.00 ( 652,822) 13,874 13,874 A subsidiary
CTCI Corp. CTCI Overseas
(BVI) Corp.
BVI Investment and planning
of related engineering.
308,554 308,554 6,740,000 100.00 2,235,923 383,327 383,327 A subsidiary
CTCI Corp. CTCI Engineering &
Construction Sdn. Bhd.
Malaysia Investment and planning
of related engineering.
4,118 4,118 450,000 60.00 ( 27,193) ( 40,242) ( 24,145) A subsidiary
CTCI Corp. CTCI CMCE JV
SDN. BHD.
Malaysia Construction planning. 2,759 2,759 382,500 51.00 8,056 ( 1,115) ( 1,115) A subsidiary
CTCI Corp. CTCI Americas, Inc. USA To extend foreign business,
the Group strengthen the
collaborative relationship with
local business owner and
supplier, developing adequate
potential supplier, and help
them to operate projects,
purchase and other related
businesses.
3,217 3,217 100,000 100.00 ( 34,558) ( 38,464) ( 38,464) A subsidiary
CTCI Corp. CCJV P1
Engineering &
Construction Sdn.
Bhd.
Malaysia Construction planning. 2,259 2,259 247,500 99.00 ( 923,173) ( 853,248) ( 844,715) A subsidiary
Table 7 Page 2
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
CTCI Corp. CTCI-HDEC (Chungli)
Corporation
Taiwan Sewerage System BOT
Project.
$ 255,000 $ 255,000 25,500,000 51.00 $ 243,386 ($ 2,217) ($ 1,130) A subsidiary
CTCI Corp. Blue Whale Water
Technology Co., Ltd.
Taiwan Wastewater Reclamation Unit
BTO Project.
347,900 347,900 36,260,000 49.00 399,109 56,382 27,627 An investee
under
equity
method
CTCI 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 71,543 19,639,509 17.16 220,865 16,201 ( 85,516) An investee
under
equity
method
CTCI Corp. EVER ECOVE Corp. Taiwan Waste service, waste clear and
steam power cogeneration.
250,000 250,000 25,000,000 25.00 245,832 ( 3,213) ( 803) An investee
under
equity
method
CTCI Corp. HDEC-CTCI (Linhai)
Corporation
Taiwan Reclaimed water operators. 202,500 202,500 20,250,000 45.00 205,541 9,226 4,152 An investee
under
equity
method
$ 9,231,925 ($ 698,767)
CTCI Development
Corp.
CTCI Chemical
Corp.
Taiwan Manufacture, wholesale,
and retail of industrial
chemicals.
$ 13,522 $ 13,522 480,661 6.77 $ 18,682 $ 37,294 $ 2,524 A second-
tier
subsidiary
CTCI Development
Corp.
ECOVE Environment
Corp.
Taiwan General investment. 11,270 11,270 243,918 0.36 19,230 403,953 1,468 A subsidiary
CTCI Development
Corp.
CTCI Resources
Engineering Inc.
Taiwan Mining of geology, sea oil
and gas, marbal and
rare; planning, design,
monitor of civil, traffic
environment and various
mechanical and
electrical equipment.
23 23 1,388 0.01 19 48,751 2 A subsidiary
Table 7 Page 3
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
CTCI Development
Corp.
Crown Asia-2
Investment Limited
Taiwan General investment. $ 2,531 $ 2,531 25,000 100.00 $ 578 ($ 28) ($ 28) A second-
tier
subsidiary
CTCI Investment
Corporation
CTCI Chemical
Corp.
Taiwan Manufacture wholesale,
and retail of industrial
chemicals.
32,153 32,153 1,657,207 23.34 64,413 37,294 8,705 A second-
tier
subsidiary
CTCI Investment
Corporation
ECOVE Environment
Corp.
Taiwan General investment. 1,374 1,374 32,132 0.05 2,529 403,953 193 A subsidiary
CTCI Investment
Corporation
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 ( 148,303) - A subsidiary
CTCI Investment
Corporation
Powertec Energy
Corp.
Taiwan Basically chemical industry
power generation, rotation
electric, machinery
manufacturing of electric
power and services of
energy technologies.
1,832,107 1,832,107 211,291,688 16.03 1,038,147 ( 1,178,861) ( 188,943) An investee
under
equity
method
CTCI Investment
Corporation
MIE INDUSTRIAL
SDN. BHD.
Malaysia Equipment & Instrument,
Procurement & Contruction
& Panel.
139,885 139,885 10,500,000 21.00 248,423 31,869 6,692 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 10.00 152,590 67,591 6,504 An investee
under
equity
method
Table 7 Page 4
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
ECOVE Environment
Corp.
ECOVE Waste
Management
Corporation
Taiwan International trade and
environmental service of
waste disposal, equipment
installation and mechanical
installation, etc.
$ 20,000 $ 20,000 2,000,000 100.00 $ 67,860 $ 22,040 $ 21,747 A second-
tier
subsidiary
ECOVE Environment
Corp.
ECOVE Wujih Energy
Corporation
Taiwan Environmental service of
waste disposal device
installation, steam power
cogeneration, etc.
450,435 425,085 30,000,000 100.00 833,870 134,894 133,116 A second-
tier
subsidiary
ECOVE Environment
Corp.
ECOVE Environmental
Services Corporation
Taiwan Management of waste
recycling site and
maintenance
of related mechanical and
equipment, etc.
339,921 339,921 14,065,936 93.15 588,638 179,354 167,072 A second-
tier
subsidiary
ECOVE Environment
Corp.
ECOVE Mioali
Energy Corporation
Taiwan Environmental service of
waste disposal device
installation, steam power
cogeneration, etc.
1,012,483 1,012,483 56,249,000 74.999 965,517 64,780 48,584 A second-
tier
subsidiary
ECOVE Environment
Corp.
ECOVE Solar Energy
Corporation
Taiwan Energy technology service. 762,349 762,349 63,245,452 100.00 842,538 23,012 23,012 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 27,000 4,500,000 100.00 39,293 55 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 20.00 288,653 67,591 13,008 An investee
under
equity
method
ECOVE Environment
Corp.
ECOVE Solvent
Recycling
Corporation
Taiwan Operating basic chemical
industry and manufacture of
other chemical products.
86,480 86,480 8,099,000 89.99 76,147 ( 4,468) ( 4,021) A second-
tier
subsidiary
Table 7 Page 5
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
ECOVE Environment
Corp.
EVER ECOVE Corp. Taiwan Waste service, waste clear and
steam power cogeneration.
$ 50,000 $ 50,000 5,000,000 5.00 $ 49,175 ($ 3,213) ($ 169) An investee
under
equity
method
ECOVE
Environmental
Services Corporation
ECOVE Wujih Energy
Corporation
Taiwan Environmental service of
waste disposal device
installation, steam power
cogeneration, etc.
- 6,000 - - - 134,894 1,778 A second-
tier
subsidiary
ECOVE
Environmental
Services Corporation
CTCI Chemical
Corp.
Taiwan Manufacture, wholesale,
and retail of industrial
chemicals.
24,851 24,851 1,910,241 26.9048 60,380 37,294 10,034 A second-
tier
subsidiary
ECOVE
Environmental
Services Corporation
Sinogal-Waste
Services Corp.
Macao Management of waste
recycling site and
maintenance of related
mechanical and
equipment, etc.
4,964 4,964 1,200,000 30.00 37,158 100,094 30,236 A second-
tier
subsidiary
ECOVE
Environmental
Services Corporation
ECOVE Mioali
Energy Corporation
Taiwan Environmental service of
waste disposal device
installation, steam power
cogeneration, etc.
13 13 1,000 0.001 18 64,780 - A second-
tier
subsidiary
ECOVE
Environmental
Services Corporation
ECOVE Solvent
Recycling
Corporation
Taiwan Operating basic chemical
industry and manufacture of
other chemical products.
10 10 1,000 0.010 8 ( 4,468) - A second-
tier
subsidiary
ECOVE Waste
Management
Corporation
ECOVE Environmental
Services Corporation
Taiwan Management of waste
recycling site and
maintenance of related
mechanical and
equipment, etc.
53 53 1,000 0.01 63 179,354 - A second-
tier
subsidiary
Table 7 Page 6
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
ECOVE Waste
Management
Corporation
Yuan Ding
Resources
Management Corp.
Taiwan Waste service, waste clear
other environmental service,
and environmental pollution
service, etc.
$ - $ 18,000 - - $ - $ 55 $ 15 A second-
tier
subsidiary
ECOVE Solar Energy
Corporation
ECOVE Solar Power
Corporation
Taiwan Energy technology service. 180,000 180,000 18,000,000 100.00 240,758 3,507 3,507 A second-
tier
subsidiary
ECOVE Solar Energy
Corporation
ECOVE Central
Corporation Ltd.
Taiwan Energy technology service. 7,500 7,500 750,000 100.00 8,245 156 156 A second-
tier
subsidiary
ECOVE Solar Energy
Corporation
ECOVE South
Corporation Ltd.
Taiwan Energy technology service. 16,500 16,500 1,650,000 100.00 32,156 1,013 1,013 A second-
tier
subsidiary
ECOVE Solar Energy
Corporation
G.D. International, LLC. USA Energy technology service. 189,197 189,197 - 100.00 385,316 12,907 12,907 A second-
tier
subsidiary
G.D International,
LLC.
Lumberton Solar W2-090,
LLC.
USA Energy technology service. 189,197 189,197 - 100.00 384,410 12,913 12,913 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 2,125,114 384,516 384,516 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 ( 568,000) 1,191 595 A
subsidiary
CTCI Overseas
Co., Ltd.
Universal Engineering
(BVI) Corp.
BVI Investment and planning
of related engineering.
1,694 1,694 50,000 100.00 ( 218,430) ( 250,802) ( 250,802) A second-
tier
subsidiary
Table 7 Page 7
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
CTCI Overseas
Co., Ltd.
CIPEC
Construction Inc.
Philippines Construction and
maintenance of refinery,
storage tanks and
chemical plant.
$ 663 $ 663 9,973 39.89 ($ 14,912) ($ 13,978) ($ 5,585) A second-
tier
subsidiary
CTCI Overseas
Co., Ltd.
CIMAS
Engineering Corp.
Vietnam Chemical, petrochemical,
feasibility study &
planning, engineering
design, procurement &
fabrication, erection,
construction &
commissioning.
65,079 26,330 - 83.00 83,773 ( 1,767) ( 1,503) 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 ( 18,200) ( 40,242) ( 16,097) A subsidiary
CTCI Overseas
Co., Ltd.
CINDA
Engineering &
Construction
Private Limited
India Chemical, petrochemical,
feasibility study &
planning, engineering
design, procurement &
fabrication, erection,
construction &
commissioning.
31,022 31,022 8,000,000 100.00 ( 65,496) ( 31,734) ( 31,734) A second-
tier
subsidiary
CTCI Overseas
Co., Ltd.
SUMBER MAMPU
SDN. BHD.
Malaysia Building of related
engineering.
95 95 10,000 10.00 175,752 6,427 6,427 A second-
tier
subsidiary
Universal
Engineering
(BVI) Corp.
Superiority
(Thailand) Co., Ltd.
Thailand Investment and planning
of related engineering.
151 151 2,156 49.00 ( 327,492) ( 252,319) ( 252,319) 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 (277,398) ( 493,367) ( 251,617) A
subsidiary
CTCI Advanced
Systems Inc.
Century Ahead Ltd. Samoa Professional investment
company.
25,097 25,097 750,000 100.00 39,378 6,396 6,396 A second-
tier
subsidiary
Table 7 Page 8
Balance as at
June 30, 2019
Balance as at
December 31, 2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
six-month period
ended June 30, 2019
(Note 2(2))
Investment income(loss)
recognised by the
Company for the six-
month period ended June
30, 2019(Note 2(3)) Footnote Investor
Investee
(Notes 1 and 2) Location Main business activities
Initial investment amount Shares held as at June 30, 2019
CTCI Smart
Engineering
Corp.
CTCI Chemical
Corp.
Taiwan Manufacture wholesale,
and retail of industrial
chemicals.
$ 7,354 $ 7,354 656,360 9.24 $ 24,538 $ 37,294 $ 3,448 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 24,769 37,294 3,448 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 51,183 965 965 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 2,737 8,083 1,617 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 28.00 327,142 31,869 8,923 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 10,949 8,083 6,467 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, 2019’ 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, 2019’ column should fill in amount of net profit (loss) of the investee for this period.
(3) The ‘Investment income (loss) recognised by the Company for the six-month period ended June 30, 2019’ column should fill in the Company (public company) recognised investment income (loss)
of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised 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 recognised by regulations.
Table 7 Page 9
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 $ 211,546 100.00 $ 211,546 $ 2,019,576 $ 295,938 Note 3
CTCI Shanghai
Co., Ltd.
Design, survey, construction and
inspection of various
engineering and construction
projects.
592,787 2 488,709 - 488,709 - 32,803 100.00 32,803 536,028 23,530 Note 7
CTCI Advanced
Systems
Shanghai Inc.
Computer technology services. 23,295 2 23,295 - - 23,295 6,394 48.72 3,115 38,196 - 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 3,516 53.77 1,890 16,790 17,306 -
FuJian Gulie
Petrochemical
Co., Ltd.
Operating in manufacturing and
selling of ethylene and others.
10,277,948 2 292,225 - - 292,225 - 1.31 - 292,225 - Note 5
CTCI Trading
Shanghai
Co., Ltd.
General trade. 23,748 2 - - - - 4,135 100.00 4,135 31,929 - Note 6
Footnote
Accumulated
amount
of remittance from
Taiwan to
Mainland China as
of June 30, 2019
Net income of
investee for the
three-month
period ended
June 30, 2019
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, 2019
Ownership held
by
the Company
(direct or
indirect)
Investment income
(loss) recognised
by the Company
for the six-month
period ended June
30, 2019
(Note 2(2)B)
Book value of
investments in
Mainland China as
of June 30, 2019
Accumulated
amount
of investment
income
remitted back to
Taiwan as of
June 30, 2019
Amount remitted from
Taiwan to Mainland China/
Amount remitted back
to Taiwan for the period
ended June 30, 2019
CTCI Corporation and its subsidiaries
Information on investees (not including investees in Mainland China)
For the six-month period ended June 30, 2019
Table 8 Expressed in thousands of NTD
(Except as otherwise indicated)
Table 8 Page 1
Company name
Accumulated amount of
remittance from Taiwan to
Mainland China
as of June 30, 2019
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. $ 633,665 $ 1,195,333 $ 9,814,517
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) recognised by the Company for the six-month period ended June 30, 2019 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 that are 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 8 Page 2