TSMC(US:TSM)2023-08-13 16:00Financial Position - Total current assets as of June 30, 2023, were NT$1,959,964,207, a decrease of 4.5% from NT$2,052,896,744 as of December 31, 2022[11] - Total noncurrent assets increased to NT$3,189,500,838, representing 62% of total assets, compared to 59% as of December 31, 2022[11] - Total liabilities decreased to NT$1,943,996,846, accounting for 38% of total assets, down from 40% at the end of 2022[11] - Equity attributable to shareholders of the parent increased to NT$3,188,750,455, representing 62% of total equity, compared to 59% at the end of 2022[11] - Unappropriated earnings rose to NT$2,542,569,779, which is 49% of total equity, up from 47% at the end of 2022[11] - Cash and cash equivalents decreased to NT$1,276,723,984, representing 25% of total assets, down from 27% at the end of 2022[11] - Total equity increased to NT$3,205,468,199, representing 62% of total assets, compared to 60% at the end of 2022[11] Revenue and Profitability - Net revenue for Q2 2023 was NT$480.84 billion, a decrease of 10% from NT$534.14 billion in Q2 2022[13] - Gross profit for Q2 2023 was NT$260.20 billion, representing a gross margin of 54%, down from 59% in Q2 2022[13] - Income from operations for Q2 2023 was NT$201.96 billion, a decline of 23% from NT$262.12 billion in Q2 2022[13] - Net income for Q2 2023 was NT$181.72 billion, down 23% from NT$237.18 billion in Q2 2022, resulting in a net income margin of 38%[13] - Basic earnings per share for Q2 2023 were NT$7.01, compared to NT$9.14 in Q2 2022[13] - Total comprehensive income for Q2 2023 was NT$187.38 billion, a decrease of 25% from NT$248.56 billion in Q2 2022[13] Expenses and Costs - Operating expenses increased to NT$58.19 billion in Q2 2023, accounting for 12% of net revenue, compared to 10% in Q2 2022[13] - Research and development expenses for Q2 2023 were NT$41.67 billion, representing 9% of net revenue, up from 8% in Q2 2022[13] - The income tax expense for Q2 2023 was NT$32.96 billion, which is 7% of income before tax, compared to 6% in Q2 2022[13] Cash Flow and Investments - Net cash generated by operating activities decreased to NT$552,492,724 in 2023 from NT$711,019,117 in 2022, reflecting a decline of 22.3%[17] - Net cash used in investing activities was NT$531,557,871 in 2023, a decrease from NT$564,005,897 in 2022, indicating a reduction of 5.8%[18] - Interest received increased significantly to NT$26,625,674 in 2023 from NT$4,322,973 in 2022, representing a growth of 516.5%[18] Assets and Liabilities - Total accounts receivable at amortized cost was $186,145,621,000 as of June 30, 2023, down from $222,761,927,000 as of December 31, 2022[64] - Finished goods inventory decreased to $30,939,982,000 as of June 30, 2023, from $54,818,402,000 as of December 31, 2022[69] - The company reported a loss allowance for accounts receivable of $588,769,000 as of June 30, 2023, an increase from $331,646,000 as of December 31, 2022[68] Shareholder Returns - Cash dividends paid to shareholders amounted to $149,104,759, which is a significant distribution reflecting the company's commitment to returning value to shareholders[15] - TSMC's cash dividends to shareholders for the second quarter of 2023 amounted to $77,796,213, maintaining a cash dividend per share of NT$3[101] Related Party Transactions - Net revenue from sales to related parties for the three months ended June 30, 2023, was $3,364,448,000, compared to $3,686,117,000 for the same period in 2022, indicating a decrease of approximately 8.7%[180] - Total purchases from related parties for the six months ended June 30, 2023, were $2,381,385,000, down from $3,098,068,000 in the same period of 2022, representing a decline of about 23.2%[180] Financial Instruments and Risk Management - The company has forward exchange contracts with a total contract amount of NT$69,835,705 for selling NT$ from July 2023 to October 2023[45] - TSMC's ten largest customers accounted for 82% of accounts receivable as of June 30, 2023, indicating a high concentration of credit risk[155] - A hypothetical adverse foreign currency exchange rate change of 10% would have decreased TSMC's net income by NT$489,135 thousand for the six months ended June 30, 2023[146] Capital Structure - The company has authorized capital of $280,500,000 with issued and paid shares totaling $259,320,710 as of June 30, 2023, showing stability in capital structure[90] - The total amount of domestic unsecured bonds as of June 30, 2023, is $901,710,299, up from $834,336,439 at the end of 2022, representing an increase of approximately 8.7%[85] Employee Compensation - TSMC's profit sharing bonus to employees for the six months ended June 30, 2023, was $26,260,235, an increase of 13.2% from $23,225,536 in the same period of 2022[132] - Compensation to key management personnel totaled $1,014,464 million for the three months ended June 30, 2023, down from $1,192,916 million in the same period of 2022, representing a decrease of approximately 15%[185]