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Segment Information

12 Months Ended

Dec. 31, 2019

4.	Segment Information

General information

The Group engages mainly in the assembly and testing of semiconductors, memory modules and investing. In accordance with IFRS 8 “Operating Segments”, the Group’s segments include Testing, Assembly, Testing and Assembly for LCDD, Bumping and others as the five reportable segments.

Measurement of segment information

The Group’s reportable segments are strategic business units which provide different products and services. The accounting policies adopted by the operating segments are the same as the accounting policies described in Note 2.

Information about segment profit or loss

The Group recognized revenue based on the progress towards completion of performance obligation during the service period.

The segment information provided to the chief operating decision maker for the reportable segments is as follows:


	2017
	Testing			Assembly			LCDD			Bumping			Others			Elimination			Total continuing operations			Discontinued operations
	NT$000			NT$000			NT$000			NT$000			NT$000			NT$000			NT$000			NT$000
Revenue
External customers		4,838,246			5,259,281			4,789,869			3,053,459			—			—			17,940,855			227,095
Inter-segment		—			—			247			—			35,808			(36,055	)		—			—

Total revenue		4,838,246			5,259,281			4,790,116			3,053,459			35,808			(36,055	)		17,940,855			227,095

Operating profit (loss)		1,448,939			(55,198	)		1,285,495			(336,123	)		(100,545	)		(2,687	)		2,239,881			(25,394	)
Depreciation expenses		(673,393	)		(597,500	)		(1,048,587	)		(579,605	)		(503	)		310			(2,899,278	)		—
Interest income		—			—			—			—			53,123			—			53,123			464
Interest expense		—			—			—			—			(190,425	)		—			(190,425	)		(2,414	)
Share of profit (loss) of associates		—			—			—			—			1,347,851			(1,527,342	)		(179,491	)		—
Purchase of property, plant and equipment		836,894			655,879			2,615,153			594,765			—			—			4,702,691			—


	2018
	Testing			Assembly			LCDD			Bumping			Others			Elimination			Total continuing operations
	NT$000			NT$000			NT$000			NT$000			NT$000			NT$000			NT$000
Revenue
External customers		4,790,097			4,679,676			5,694,720			3,315,534			—			—			18,480,027
Inter-segment		—			—			—			—			35,738			(35,738	)		—

Total revenue		4,790,097			4,679,676			5,694,720			3,315,534			35,738			(35,738	)		18,480,027

Operating profit (loss)		1,306,742			(207,700	)		1,226,755			(202,497	)		(23,433	)		(146	)		2,099,721
Depreciation expenses		(769,660	)		(578,205	)		(1,400,784	)		(627,412	)		(518	)		—			(3,376,579	)
Interest income		—			—			—			—			49,971			—			49,971
Interest expense		—			—			—			—			(152,416	)		—			(152,416	)
Share of profit (loss) of associates		—			—			—			—			(668,377	)		368,276			(300,101	)
Purchase of property, plant and equipment		1,563,919			321,976			2,732,141			327,251			283			—			4,945,570


	2019
	Testing			Assembly			LCDD			Bumping			Others			Elimination			Total continuing operations
	NT$000			NT$000			NT$000			NT$000			NT$000			NT$000			NT$000
Revenue
External customers		4,257,800			5,148,877			6,922,205			4,008,999			—			—			20,337,881
Inter-segment		—			—			—			—			32,808			(32,808	)		—

Total revenue		4,257,800			5,148,877			6,922,205			4,008,999			32,808			(32,808	)		20,337,881

Operating profit (loss)		709,142			(227,096	)		1,740,720			232,404			1,931			18			2,457,119
Depreciation expenses		(802,740	)		(521,311	)		(1,796,951	)		(604,553	)		(6,359	)		—			(3,731,914	)
Interest income		—			—			—			—			64,368			—			64,368
Interest expense		—			—			—			—			(171,075	)		—			(171,075	)
Share of profit (loss) of associates		—			—			—			—			(370,351	)		215,425			(154,926	)
Purchase of property, plant and equipment		764,105			548,063			3,077,806			506,635			47			—			4,896,656

The application of IFRS 16 had the following impact on the segment information in 2019:


	Testing		Assembly		LCDD		Bumping		Others		Elimination		Total continuing operations
	NT$000		NT$000		NT$000		NT$000		NT$000		NT$000		NT$000
Depreciation expenses increased		7,631		6,035		10,703		1,137		5,808		—		31,314

Interest expense increased		4,207		3,260		5,862		492		319		—		14,140

Reconciliation for segment income (loss)

Revenue from external customers and segment income (loss) reported to the chief operating decision maker are measured using the same method as for revenue and operating profit in the financial statements. Thus, no reconciliation is needed.

Information on products and services


	2017				2018				2019
	NT$000		%		NT$000		%		NT$000		%
Testing		4,838,246		27		4,790,097		26		4,257,800		21
Assembly		5,259,281		29		4,679,676		25		5,148,877		25
LCDD		4,789,869		27		5,694,720		31		6,922,205		34
Bumping		3,053,459		17		3,315,534		18		4,008,999		20

		17,940,855		100		18,480,027		100		20,337,881		100

Geographical information


	2017		2018		2019
	NT$000		NT$000		NT$000
Revenue
ROC		13,152,419		14,751,766		15,875,027
Japan		2,257,296		1,825,479		1,905,032
Singapore		1,798,585		1,143,661		1,333,114
People’s Republic of China (“PRC”)		162,579		163,831		789,496
Others		569,976		595,290		435,212

		17,940,855		18,480,027		20,337,881


	2018		2019
	NT$000		NT$000
Non-current assets
ROC		16,847,172		18,727,979
Others		1,009		5,659

		16,848,181		18,733,638

Major customer information

The information on the major customers which constituted more than 10% of the Group’s total revenue for the years ended December 31, 2017, 2018 and 2019 is as follows:


	2017				2018				2019
	Amount		%		Amount		%		Amount		%
	NT$000				NT$000				NT$000
Customers
Customer A		3,434,873		19		3,794,991		21		4,756,755		23
Customer K		2,742,882		15		2,637,053		14		2,419,612		12
Customer C		1,530,209		9		1,957,467		11		2,048,260		10
Customer X		999,117		6		1,328,752		7		1,977,427		10
Customer I		1,798,111		10		1,101,956		6		1,315,527		6

Contract assets and liabilities:

The Group has recognized the following contract assets and liabilities in relation to revenue from contracts with customers:


	January 1, 2018		December 31, 2018		December 31, 2019
	NT$000		NT$000		NT$000
Contract assets		254,997		299,835		377,869

Contract liabilities (Advance payments)		1,152		1,432		1,231

Contract assets have increased as the Group has completed more services in excess of customer’s payment. The information relating to loss allowance for contract assets is provided in Note 33 a).

Revenue recognized in the current reporting period amounted to NT$766 thousand was related to carried-forward contract liabilities for performance obligations not satisfied in prior year.

All of the service contracts are for periods of one year or less. As permitted under IFRS 15, the transaction price allocated to these unsatisfied contracts is not disclosed. As of December 31, 2019, the Group did not recognized an asset in relation to costs to fulfill a service contract.