| Corporate income tax expenses (benefit) |
28. Corporate income tax expenses (benefit) Details of corporate income tax expense (benefit) for the six months ended June 30, 2024, and 2023, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: USD) |
|
| |
|
For the six
months
ended 2024 |
|
|
For the six
months
ended 2023 |
|
| Corporate tax paid(refund) |
|
|
— |
|
|
|
(3,035 |
) |
| Changes in deferred tax due to temporary differences |
|
|
— |
|
|
|
23,116 |
|
| Corporate tax expense directly reflected in capital |
|
|
— |
|
|
|
— |
|
| Others (*) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Income tax expense (benefit) |
|
|
— |
|
|
|
20,081 |
|
|
|
|
|
|
|
|
|
|
| (*) |
The Company has elected not to recognize deferred tax assets due to the determination that it was improbable that taxable profit could be generated to offset the deductible temporary differences. Consequently, the amounts of deferred tax assets previously recognized have been recognized as corporate tax expense in the year 2023. | The details of the increase or decrease in temporary differences deducted or added from future corporate income tax for the six months ended June 30, 2024 and year ended December 31, 2023, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: USD) |
|
| |
|
|
|
Temporary differences to be deducted
(additional) for the current year |
|
|
Deferred tax
assets (liabilities) |
|
| |
|
|
|
|
|
|
|
|
|
| Provision for retirement benefits |
|
|
1,689,974 |
|
|
|
(106,263 |
) |
|
|
1,583,711 |
|
|
|
330,996 |
|
| Retirement pension assets |
|
|
(116,768 |
) |
|
|
7,342 |
|
|
|
(109,426 |
) |
|
|
(22,870 |
) |
| Accumulated depreciation_1 |
|
|
1,165,723 |
|
|
|
(73,299 |
) |
|
|
1,092,424 |
|
|
|
228,317 |
|
| Accumulated depreciation_2 |
|
|
490,510 |
|
|
|
(30,843 |
) |
|
|
459,667 |
|
|
|
96,070 |
|
| Investment in subsidiaries and associates |
|
|
46,341,396 |
|
|
|
(2,913,886 |
) |
|
|
43,427,510 |
|
|
|
9,076,350 |
|
| Available-for-sale |
|
|
(187,507 |
) |
|
|
11,790 |
|
|
|
(175,717 |
) |
|
|
(36,725 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: USD) |
|
| |
|
|
|
Temporary differences to be deducted
(additional) for the current year |
|
|
Deferred tax
assets (liabilities) |
|
| |
|
|
|
|
|
|
|
|
|
| Revaluation of non-current financial asset |
|
|
29,380 |
|
|
|
(1,848 |
) |
|
|
27,532 |
|
|
|
5,754 |
|
| Capital change from equity method |
|
|
560,867 |
|
|
|
(35,266 |
) |
|
|
525,601 |
|
|
|
109,851 |
|
| Raw material allowance |
|
|
208,834 |
|
|
|
(13,131 |
) |
|
|
195,703 |
|
|
|
40,902 |
|
| Provision for warranties |
|
|
30,957 |
|
|
|
(1,946 |
) |
|
|
29,011 |
|
|
|
6,063 |
|
| Accrued income |
|
|
(243,741 |
) |
|
|
15,326 |
|
|
|
(228,415 |
) |
|
|
(47,739 |
) |
| Loss on equity method investment impairment |
|
|
4,066,707 |
|
|
|
(255,709 |
) |
|
|
3,810,998 |
|
|
|
796,499 |
|
| Lease liabilities |
|
|
161,586 |
|
|
|
(10,160 |
) |
|
|
151,426 |
|
|
|
31,648 |
|
| Rent deposits |
|
|
9,237 |
|
|
|
(580 |
) |
|
|
8,657 |
|
|
|
1,809 |
|
| Right of use assets |
|
|
(165,171 |
) |
|
|
10,385 |
|
|
|
(154,786 |
) |
|
|
(32,350 |
) |
| Bad debt |
|
|
7,204,865 |
|
|
|
(453,033 |
) |
|
|
6,751,832 |
|
|
|
1,411,133 |
|
| Net operating loss |
|
|
12,968,581 |
|
|
|
453,033 |
|
|
|
13,421,614 |
|
|
|
2,805,117 |
|
| Gain from equity method |
|
|
(3,315,592 |
) |
|
|
208,480 |
|
|
|
(3,107,112 |
) |
|
|
(649,386 |
) |
| Convertible bond |
|
|
30,589 |
|
|
|
(1,923 |
) |
|
|
28,666 |
|
|
|
5,991 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
70,930,427 |
|
|
|
(3,191,531 |
) |
|
|
67,738,896 |
|
|
|
14,157,430 |
|
| Valuation allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,157,430 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax asset, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: USD) |
|
|
|
|
|
Temporary differences to be deducted
(additional) for the current year |
|
|
Deferred tax
assets
(liabilities) |
|
|
|
|
|
|
|
|
|
|
|
Loss on foreign currency translation |
|
|
136,353 |
|
|
|
(136,353 |
) |
|
|
— |
|
|
|
— |
|
Gain from foreign currency translation |
|
|
(65,353 |
) |
|
|
65,353 |
|
|
|
— |
|
|
|
— |
|
Provision for retirement benefits |
|
|
1,315,937 |
|
|
|
374,037 |
|
|
|
1,689,974 |
|
|
|
353,205 |
|
Retirement pension assets |
|
|
(118,121 |
) |
|
|
1,353 |
|
|
|
(116,768 |
) |
|
|
(24,405 |
) |
Accumulated depreciation_1 |
|
|
1,195,828 |
|
|
|
(30,105 |
) |
|
|
1,165,723 |
|
|
|
243,636 |
|
Accumulated depreciation (revaluation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Machineries (revaluation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Land (revaluation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Accumulated depreciation_2 |
|
|
503,178 |
|
|
|
(12,668 |
) |
|
|
490,510 |
|
|
|
102,517 |
|
Investment in subsidiaries and associates |
|
|
43,979,927 |
|
|
|
2,361,469 |
|
|
|
46,341,396 |
|
|
|
9,685,352 |
|
Available-for-sale |
|
|
(192,349 |
) |
|
|
4,842 |
|
|
|
(187,507 |
) |
|
|
(39,189 |
) |
Revaluation of non-current financial asset |
|
|
30,139 |
|
|
|
(759 |
) |
|
|
29,380 |
|
|
|
6,140 |
|
Capital change from equity method |
|
|
575,352 |
|
|
|
(14,485 |
) |
|
|
560,867 |
|
|
|
117,221 |
|
Raw material allowance |
|
|
196,385 |
|
|
|
12,449 |
|
|
|
208,834 |
|
|
|
43,646 |
|
Provision for warranties |
|
|
36,099 |
|
|
|
(5,142 |
) |
|
|
30,957 |
|
|
|
6,470 |
|
Trade receivables |
|
|
3,397,671 |
|
|
|
(3,397,671 |
) |
|
|
— |
|
|
|
— |
|
Short-term borrowings |
|
|
6,407,370 |
|
|
|
(6,407,370 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: USD) |
|
|
|
|
|
Temporary differences to be deducted
(additional) for the current year |
|
|
Deferred tax
assets
(liabilities) |
|
|
|
|
|
|
|
|
|
|
|
Other receivables |
|
|
420,117 |
|
|
|
(420,117 |
) |
|
|
— |
|
|
|
— |
|
Accrued income |
|
|
335,158 |
|
|
|
(578,899 |
) |
|
|
(243,741 |
) |
|
|
(50,942 |
) |
Advanced payment |
|
|
149,420 |
|
|
|
(149,420 |
) |
|
|
— |
|
|
|
— |
|
Loss on equity method investment impairment |
|
|
2,187,346 |
|
|
|
1,879,361 |
|
|
|
4,066,707 |
|
|
|
849,942 |
|
Lease liabilities |
|
|
122,962 |
|
|
|
38,624 |
|
|
|
161,586 |
|
|
|
33,771 |
|
Rent deposits |
|
|
7,483 |
|
|
|
1,754 |
|
|
|
9,237 |
|
|
|
1,931 |
|
Right of use assets |
|
|
(124,051 |
) |
|
|
(41,120 |
) |
|
|
(165,171 |
) |
|
|
(34,521 |
) |
Bad debt |
|
|
— |
|
|
|
7,204,865 |
|
|
|
7,204,865 |
|
|
|
1,505,817 |
|
Net operating loss |
|
|
20,173,446 |
|
|
|
(7,204,865 |
) |
|
|
12,968,581 |
|
|
|
2,710,433 |
|
Gain from equity method |
|
|
— |
|
|
|
(3,315,592 |
) |
|
|
(3,315,592 |
) |
|
|
(692,959 |
) |
Convertible bond |
|
|
— |
|
|
|
30,589 |
|
|
|
30,589 |
|
|
|
6,393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
80,670,297 |
|
|
|
(9,739,870 |
) |
|
|
70,930,427 |
|
|
|
14,824,458 |
|
Valuation allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,824,458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statutory tax rate in Republic of Korea is 20.9% for fiscal year 2024 and 2023. The future feasibility of deferred tax assets is evaluated by considering various factors such as the Company’s ability to generate taxable income during the period when temporary differences are realized, the overall economic environment, and the outlook for the industry. The Company is reviewing these matters periodically. M anagement reserved a valuation allowance of approximately 80% of the total deferred tax assets calculated as of December 31, 2022. This allowance was increased to 100% as of December 31, 2023, due to the management’s assessment that generating taxable profit to offset deductible temporary difference was doubtful. Consequently, the amounts of deferred tax assets previously recognized have been recognized as corporate tax expense in the year 2023. |
28. Corporate income tax expenses (benefit) Details of corporate income tax expense (benefit) for the year ended December 31, 2023, and 2022, are as follows:
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
(Unit: USD) |
|
|
|
|
|
|
|
|
Corporate tax paid(refund) |
|
|
(678 |
) |
|
|
— |
|
Changes in deferred tax due to temporary differences |
|
|
— |
|
|
|
(1,031,269 |
) |
Corporate tax expense directly reflected in capital |
|
|
— |
|
|
|
171,218 |
|
Others(*) |
|
|
2,861,757 |
|
|
|
(651,645 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
|
2,861,079 |
|
|
|
(1,511,696 |
) |
|
|
|
|
|
|
|
|
|
| (*) |
The Company has elected not to recognize deferred tax assets due to the determination that it was improbable that taxable profit could be generated to offset the deductible temporary differences. Consequently, the amounts of deferred tax assets previously recognized have been recognized as corporate tax expense in the year 2023. | The details of the increase or decrease in temporary differences deducted or added from future corporate income tax for the year ended December 31, 2023 and 2022, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: USD) |
|
|
|
|
|
|
|
Temporary differences to be deducted
(additional) for the current year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on foreign currency translation |
|
|
136,353 |
|
|
|
(136,353 |
) |
|
|
— |
|
|
|
— |
|
Gain from foreign currency translation |
|
|
(65,353 |
) |
|
|
65,353 |
|
|
|
— |
|
|
|
— |
|
Provision for retirement benefits |
|
|
1,315,937 |
|
|
|
374,037 |
|
|
|
1,689,974 |
|
|
|
353,205 |
|
Retirement pension assets |
|
|
(118,121 |
) |
|
|
1,353 |
|
|
|
(116,768 |
) |
|
|
(24,405 |
) |
Accumulated depreciation_1 |
|
|
1,195,828 |
|
|
|
(30,105 |
) |
|
|
1,165,723 |
|
|
|
243,636 |
|
Accumulated depreciation (revaluation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Machineries (revaluation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Land (revaluation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Accumulated depreciation_2 |
|
|
503,178 |
|
|
|
(12,668 |
) |
|
|
490,510 |
|
|
|
102,517 |
|
Investment in subsidiaries and associates |
|
|
43,979,927 |
|
|
|
2,361,469 |
|
|
|
46,341,396 |
|
|
|
9,685,352 |
|
|
|
|
(192,349 |
) |
|
|
4,842 |
|
|
|
(187,507 |
) |
|
|
(39,189 |
) |
Revaluation of non-current financial asset |
|
|
30,139 |
|
|
|
(759 |
) |
|
|
29,380 |
|
|
|
6,140 |
|
Capital change from equity method |
|
|
575,352 |
|
|
|
(14,485 |
) |
|
|
560,867 |
|
|
|
117,221 |
|
Raw material allowance |
|
|
196,385 |
|
|
|
12,449 |
|
|
|
208,834 |
|
|
|
43,646 |
|
Provision for warranties |
|
|
36,099 |
|
|
|
(5,142 |
) |
|
|
30,957 |
|
|
|
6,470 |
|
Trade receivables |
|
|
3,397,671 |
|
|
|
(3,397,671 |
) |
|
|
— |
|
|
|
— |
|
Short-term borrowings |
|
|
6,407,370 |
|
|
|
(6,407,370 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other receivables |
|
|
420,117 |
|
|
|
(420,117 |
) |
|
|
— |
|
|
|
— |
|
Accrued income |
|
|
335,158 |
|
|
|
(578,899 |
) |
|
|
(243,741 |
) |
|
|
(50,942 |
) |
Advanced payment |
|
|
149,420 |
|
|
|
(149,420 |
) |
|
|
— |
|
|
|
— |
|
Loss on equity method investment impairment |
|
|
2,187,346 |
|
|
|
1,879,361 |
|
|
|
4,066,707 |
|
|
|
849,942 |
|
Lease liabilities |
|
|
122,962 |
|
|
|
38,624 |
|
|
|
161,586 |
|
|
|
33,771 |
|
Rent deposits |
|
|
7,483 |
|
|
|
1,754 |
|
|
|
9,237 |
|
|
|
1,931 |
|
Right of use assets |
|
|
(124,051 |
) |
|
|
(41,120 |
) |
|
|
(165,171 |
) |
|
|
(34,521 |
) |
Bad debt |
|
|
— |
|
|
|
7,204,865 |
|
|
|
7,204,865 |
|
|
|
1,505,817 |
|
Net operating loss |
|
|
20,173,446 |
|
|
|
(7,204,865 |
) |
|
|
12,968,581 |
|
|
|
2,710,433 |
|
Gain from equity method |
|
|
— |
|
|
|
(3,315,592 |
) |
|
|
(3,315,592 |
) |
|
|
(692,959 |
) |
Convertible bond |
|
|
— |
|
|
|
30,589 |
|
|
|
30,589 |
|
|
|
6,393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
80,670,297 |
|
|
|
(9,739,870 |
) |
|
|
70,930,427 |
|
|
|
14,824,458 |
|
Valuation allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,824,458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(Unit: USD) |
|
| |
|
|
|
| |
|
Temporary differences to be deducted
(additional) for the current year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on foreign currency translation |
|
|
75,676 |
|
|
|
60,677 |
|
|
|
136,353 |
|
|
|
28,498 |
|
Gain from foreign currency translation |
|
|
(423,358 |
) |
|
|
358,005 |
|
|
|
(65,353 |
) |
|
|
(13,659 |
) |
Provision for retirement benefits |
|
|
950,940 |
|
|
|
364,997 |
|
|
|
1,315,937 |
|
|
|
275,031 |
|
Retirement pension assets |
|
|
(123,845 |
) |
|
|
5,724 |
|
|
|
(118,121 |
) |
|
|
(24,687 |
) |
Accumulated depreciation |
|
|
1,269,315 |
|
|
|
(73,487 |
) |
|
|
1,195,828 |
|
|
|
249,928 |
|
Accumulated depreciation (revaluation) |
|
|
(734,647 |
) |
|
|
734,647 |
|
|
|
— |
|
|
|
— |
|
Machineries (revaluation) |
|
|
255,884 |
|
|
|
(255,884 |
) |
|
|
— |
|
|
|
— |
|
Land (revaluation) |
|
|
(1,495,641 |
) |
|
|
1,495,641 |
|
|
|
— |
|
|
|
— |
|
Accumulated depreciation |
|
|
534,099 |
|
|
|
(30,921 |
) |
|
|
503,178 |
|
|
|
105,164 |
|
Investment in subsidiaries and associates |
|
|
32,840,759 |
|
|
|
11,139,168 |
|
|
|
43,979,927 |
|
|
|
9,191,805 |
|
|
|
|
(204,170 |
) |
|
|
11,821 |
|
|
|
(192,349 |
) |
|
|
(40,201 |
) |
Revaluation of non-current financial asset |
|
|
31,991 |
|
|
|
(1,852 |
) |
|
|
30,139 |
|
|
|
6,299 |
|
Capital change from equity method |
|
|
(358,416 |
) |
|
|
933,768 |
|
|
|
575,352 |
|
|
|
120,249 |
|
Raw material allowance |
|
|
— |
|
|
|
196,385 |
|
|
|
196,385 |
|
|
|
41,044 |
|
Provision for warranties |
|
|
— |
|
|
|
36,099 |
|
|
|
36,099 |
|
|
|
7,545 |
|
Trade receivables |
|
|
— |
|
|
|
3,397,671 |
|
|
|
3,397,671 |
|
|
|
710,113 |
|
Short-term borrowings |
|
|
— |
|
|
|
6,407,370 |
|
|
|
6,407,370 |
|
|
|
1,339,140 |
|
Other receivables |
|
|
— |
|
|
|
420,117 |
|
|
|
420,117 |
|
|
|
87,805 |
|
Accrued income |
|
|
(1,622,198 |
) |
|
|
1,957,356 |
|
|
|
335,158 |
|
|
|
70,048 |
|
Advanced payment |
|
|
171,310 |
|
|
|
(21,890 |
) |
|
|
149,420 |
|
|
|
31,229 |
|
Loss on equity method investment impairment |
|
|
— |
|
|
|
2,187,346 |
|
|
|
2,187,346 |
|
|
|
457,155 |
|
Lease liabilities |
|
|
— |
|
|
|
122,962 |
|
|
|
122,962 |
|
|
|
25,699 |
|
Rent deposits |
|
|
— |
|
|
|
7,483 |
|
|
|
7,483 |
|
|
|
1,564 |
|
Right of use assets |
|
|
— |
|
|
|
(124,051 |
) |
|
|
(124,051 |
) |
|
|
(25,927 |
) |
Bad debt |
|
|
20,173,446 |
|
|
|
(20,173,446 |
) |
|
|
— |
|
|
|
— |
|
Net operating loss |
|
|
— |
|
|
|
20,173,446 |
|
|
|
20,173,446 |
|
|
|
4,216,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
51,341,145 |
|
|
|
29,329,152 |
|
|
|
80,670,297 |
|
|
|
16,860,092 |
|
Valuation allowance |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
(13,898,245 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset, net |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
2,961,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statutory tax rate in Republic of Korea is 20.9% for fiscal year 2023 and 2022. The future feasibility of deferred tax assets is evaluated by considering various factors such as the Company’s ability to generate taxable income during the period when temporary differences are realized, the overall economic environment, and the outlook for the industry. The Company is reviewing these matters periodically. Management reserved a valuation allowance of approximately 80% of the total deferred tax assets calculated as of December 31, 2022. This allowance was increased to 100% as of December 31, 2023, due to the management’s assessment that generating taxable profit to offset deductible temporary difference was doubtful. Consequently, the amounts of deferred tax assets previously recognized have been recognized as corporate tax expense in the year 2023. |