Annual Financial Report

 

 

 

 

 

 

HON HAI PRECISION INDUSTRY CO., LTD.

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT ACCOUNTANTS

DECEMBER 31, 2007, 2008 AND 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

 

 

To the Board of Directors and Stockholders:

Hon Hai Precision Industry Co., Ltd.

 

 

We have audited the accompanying consolidated balance sheets of Hon Hai Precision Industry Co., Ltd. and its subsidiaries as of December 31, 2007, 2008 and 2009, and the related consolidated statements of income, of changes in stockholders’ equity and of cash flows for the years then ended, expressed in thousands of New Taiwan dollars.These financial statements are the responsibility of the Company’s management.Our responsibility is to express an opinion on these financial statements based on our audits.We did not audit the financial statements of certain consolidated subsidiaries which statements reflect total assets of $213,993,033,000, $180,302,711,000 and $179,276,293,000, constituting 24.67%, 20.52% and17.54% of the consolidated total assets as of December 31, 2007, 2008 and 2009, respectively, and total revenues of $350,446,998,000, $299,240,615,000 and $250,162,251,000, constituting 20.58%, 15.34%, and 12.77% of the consolidated total operating revenues for the years then ended, respectively.Those statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included for these subsidiaries and certain information disclosed in Note11, is based solely on the reports of the other auditors.

We conducted our audits in accordance with the “Rules Governing the Examination of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of other auditors, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Hon Hai Precision Industry Co., Ltd. and its subsidiaries as of December 31, 2007, 2008 and 2009, and the results of their operations and their cash flows for the years then ended in conformity with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and generally accepted accounting principles in the Republic of China.

As described in Note 3, effective January 1, 2008 and 2009, respectively, the Company and its subsidiaries adopted EITF 96-052,"Accounting for Employees' Bonuses and Directors' and Supervisors' Remuneration", prescribed by the R.O.C. Accounting Research and Development Foundation and R.O.C. SFAS No. 10, “Accounting for Inventories”.

As disclosed in Note 2, the consolidated financial statements of Hon Hai Precision Industry Co., Ltd. and its subsidiaries as of and for the year ended December 31, 2009 expressed in U.S. dollars are presented solely for the convenience of the reader and were translated from the financial statements expressed in New Taiwan dollars using the exchange rate of U.S.$1.00:NT$31.73, the noon buying rate in the City of New York for cable transfers in NT dollars per U.S. dollars as certified for custom purposes by the Federal Reserve Bank of New York as of March 31, 2010. This basis of translation is not in accordance with generally accepted accounting principles in the Republic of China.

 

 

 

 

 

 

	2007	2008	2009	2009
	NT$	NT$	NT$	US$
				(Unaudited)
				(Note 2)
ASSETS
Current Assets
Cash and cash equivalents (Note 4(1))	$144,376,145	$ 99,142,368	$177,543,140	$5,595,434
Financial assets at fair value through profit or loss
-current (Note 4(2))	128,166	152,389	320,985	10,116
Available-for-sale financial assets - current
(Note 4(3))	1,272,051	692,984	1,278,839	40,304
Notes Receivable, net (Note 4(4) and 6)	1,078,896	974,850	10,766,527	339,317
Accounts receivable, net (Note 4(4))	247,092,530	252,235,955	277,881,365	8,757,686
Accounts receivable, net - related parties (Note 5)	9,142,462	14,138,162	18,957,770	597,471
Other receivables (Notes 4(5) and 5)	11,066,924	18,351,438	24,077,227	758,816
Inventories, net (Note 3 and 4(6))	158,403,052	166,725,194	180,979,701	5,703,741
Prepayments (Note 5)	5,048,090	3,663,123	4,521,145	142,488
Deferred income tax assets - current (Note 4 (14))	2,282,215	2,672,961	3,247,758	102,356
	579,890,531	558,749,464	699,574,457	22,047,729
Funds and Investments
Available-for-sale financial assets - non-current
(Note 4 (3))	31,934,387	8,087,622	17,056,571	537,554
Financial assets carried at cost - non-current
(Note 4 (7))	1,680,237	1,267,747	1,500,572	47,292
Long-term equity investments accounted for under
the equity method (Note 4 (8))	29,644,052	25,654,728	32,688,361	1,030,204
Prepaid long-term investments (Note 4 (8))	670,390	119,201	427,130	13,461
Other Financial Assets - non-current (Note 6)	604,845	-	3,550,787	111,906
	64,533,911	35,129,298	55,223,421	1,747,417
Property, Plant and Equipment (Notes 4 (9) 5 and 6)
Cost
Land	3,785,415	3,570,568	3,863,939	121,776
Buildings and improvements	60,682,270	92,386,545	110,709,699	3,489,118
Machinery	127,149,595	151,401,917	154,766,994	4,877,623
Molding equipment	3,271,673	2,836,777	2,897,287	91,311
Testing equipment	15,208,950	19,847,237	20,776,078	654,777
Office equipment	10,181,629	12,670,588	13,000,893	409,735
Tooling equipment	2,544,575	2,907,269	3,194,607	100,681
Other equipment	18,918,158	27,009,177	29,925,748	943,137
Cost and revaluation	241,742,265	312,630,078	339,135,245	10,688,158
Less: Accumulated depreciation	(68,437,728)	(91,593,360)	( 116,829,656)	( 3,681,994)
Accumulated impairment	( 579,995)	( 2,282,726)	( 3,296,540)	( 103,893)
Construction in progress and prepayments
for equipment	29,650,257	35,177,308	15,609,092	491,935
	202,374,799	253,931,300	234,618,141	7,394,206
Intangible Asset (Note 4 (10))
Goodwill	2,268,102	2,291,662	1,317,381	41,518
Other intangible assets	-	818,688	476,011	15,002
	2,268,102	3,110,350	1,793,392	56,520
Other Assets
Deferred charges	3,115,140	6,231,396	5,149,757	162,299
Other assets – other (Notes 4 (11) and 6)	15,114,572	21,469,366	25,586,121	806,370
	18,229,712	27,700,762	30,735,878	968,669
TOTAL ASSETS	$867,297,055	$878,621,174	$1,021,945,289	$ 32,207,541

(continued)

	2007	2008	2009	2009
	NT$	NT$	NT$	US$
				(Unaudited)
				(Note 2)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term loans (Note 4(12))	$104,644,796	$ 59,923,464	$ 80,244,711	$ 2,528,986
Financial liabilities at fair value through profit
or loss - current (Note 4(2))	3,213	251,391	57,756	1,820
Accounts payable	256,389,454	252,445,959	281,722,061	8,878,729
Accounts payable – related parties (Note 5)	17,600,942	13,657,946	18,807,491	592,735
Income tax payable (Note 4(14))	12,843,279	12,610,062	13,237,858	417,203
Accrued expenses (Notes 4(13)(19))	31,889,312	43,349,521	50,396,547	1,588,293
Payables for equipment (Note 5)	6,939,849	8,068,285	4,058,968	127,922
Other payables	5,794,025	4,692,817	6,060,236	190,994
Receipts in advance	2,087,306	2,318,709	3,730,502	117,570
Long-term liabilities - current portion (Note 4(15))	-	17,658,358	6,000,000	189,096
Accrued warranty liabilities	2,585,721	4,521,983	7,644,237	240,915
Other current liabilities	3,128,221	2,590,724	3,275,578	103,233
	443,906,118	422,089,219	475,235,945	14,977,496
Long-term Liabilities
Bonds payable (Note 4(15))	28,759,958	16,680,000	29,539,400	930,961
Long-term loans (Note 4(16))	32,404	33,948,000	33,109,650	1,043,481
	28,792,362	50,628,000	62,649,050	1,974,442
Other Liabilities
Reserve for retirement plan (Note 4(17))	995,896	1,027,505	1,079,243	34,013
Deferred income tax liabilities - non-current
(Note 4(14))	7,634,869	8,156,970	5,341,871	168,354
Other liabilities - other	2,463,118	2,398,657	2,928,201	92,285
	11,093,883	11,583,132	9,349,315	294,652
Total liabilities	483,792,363	484,300,351	547,234,310	17,246,590
Stockholders' Equity
Stockholders' Equity of Parent Company
Capital stock (Note 4(18))
Common stock	62,907,666	74,146,236	85,789,319	2,703,729
Capital reserve (Note 4(20))
Paid-in capital in excess of par value of common stock	20,221,815	20,221,815	23,670,255	745,990
Capital reserve from conversion of convertible bonds	18,482,483	18,482,483	18,482,483	582,492
Capital reserve from long-term investments	13,071,911	13,044,872	13,960,767	439,986
Capital reserve from conversion right (Note 4(15))	1,195,200	1,195,200	1,195,200	37,668
Retained earnings (Note 4(21))
Legal reserve	23,255,167	31,024,118	36,537,436	1,151,511
Undistributed earnings	164,458,000	177,920,130	228,813,896	7,211,279
Other adjustments of stockholders' equity
Unrealized gain or loss on financial instruments
(Note 4(3))	35,906,996	4,727,053	16,902,917	532,711
Cumulative translation adjustments	11,210,314	20,423,841	14,522,082	457,677
Treasury stock	(18,901)	(18,901)	(18,901)	(596)
Stockholders' equity of parent company	350,690,651	361,166,847	439,855,454	13,862,447
Minority interest	32,814,041	33,153,976	34,855,525	1,098,504
Total stockholders' equity	383,504,692	394,320,823	474,710,979	14,960,951
Commitments and Contingent Liabilities (Note 7)
Subsequent Events (Note 9)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY	$867,297,055	$878,621,174	$1,021,945,289	$32,207,541

The accompanying notes are an integral part of these consolidated financial statements.

	2007		2008		2009		2009
	NT$		NT$		NT$		US$
							(Unaudited)
							(Note 2)
Operating revenues
Sales (Note 5)	$1,703,945,741		$1,951,973,830		$1,960,207,084		$ 61,777,721
Sales returns	( 797,568)		( 1,383,283)		( 978,073)		(30,825)
Sales discounts	( 484,748)		( 109,186)		(46,626)		( 1,469)
Net operating revenues	1,702,663,425		1,950,481,361		1,959,182,385		61,745,427
Operating costs
Cost of goods sold (Notes 3、4(6)(23) and 5)	( 1,537,353,307)		( 1,782,377,254)		( 1,772,628,937)		(55,866,024)
Gross profit	165,310,118		168,104,107		186,553,448		5,879,403
Operating expenses (Note 4 (23))
Sales and marketing expenses	(25,173,928)		(29,421,020)		(36,208,086)		( 1,141,131)
General and administrative expenses	(33,544,379)		(44,416,202)		(40,774,286)		( 1,285,039)
Research and development expenses	(15,340,716)		(23,660,061)		(26,081,951)		( 821,996)
Total operating expenses	(74,059,023)		(97,497,283)		( 103,064,323)		( 3,248,166)
Operating income	91,251,095		70,606,824		83,489,125		2,631,236
Non-operating income and gains
Interest income	2,659,650		4,734,167		1,473,116		46,427
Gain on valuation of financial assets
(Note 4 (2))	4,068		453,948		-		-
Gain on valuation of financial liabilities
(Note 4 (2))	141,576		297,743		-		-
Investment income accounted for under
the equity method (Note 4 (8))	3,644,203		1,600,428		2,841,913		89,565
Dividend income	211,855		366,795		693,452		21,855
Gain on disposal of property , plant and
equipment (Note 5)	-		237,815		-		-
Gain on disposal of investments (Note 4 (7))	597,324		-		761,501		23,999
Foreign exchange gain - net	6,520,235		3,003,851		726,921		22,910
Other non-operating income	3,188,762		3,261,502		3,870,338		121,977
Total non-operating income and gains	16,967,673		13,956,249		10,367,241		326,733
Non-operating expenses and losses
Interest expense	( 5,413,272)		( 6,697,882)		( 1,908,577)		(60,151)
Loss on valuation of financial assets (Note 4(2))	-		-		(27,342)		( 862)
Loss on valuation of financial liabilities (Note 4(2))	-		-		( 243,475)		( 7,673)
Loss on disposal of property, plant and
equipment(Note 5)	(30,659)		-		(18,600)		( 586)
Financing charges (Note 4 (4))	( 309,426)		( 987,199)		(15,197)		( 479)
Impairment loss (Notes 4 (7)(8)(9)(10))	(52,193)		( 3,162,701)		( 2,036,878)		(64,194)
Other non-operating losses	( 1,275,802)		( 1,121,611)		( 1,575,333)		(49,648)
Total non-operating expenses and losses	( 7,081,352)		(11,969,393)		( 5,825,402)		( 183,593)
Income before income tax	101,137,416		72,593,680		88,030,964		2,774,376
Income tax expense (Note 4 (14))	(16,449,056)		(15,903,694)		(11,650,671)		( 367,181)
Consolidated net income	$ 84,688,360		$ 56,689,986		$ 76,380,293		$2,407,195
Attributable to:
Equity holders of the Company	$ 77,689,512		$ 55,133,175		$ 75,685,105		$2,385,285
Minority interest	6,998,848		1,556,811		695,188		21,910
	$ 84,688,360		$ 56,689,986		$ 76,380,293		$2,407,195
	Before income tax	After income tax	Before income tax	After income tax	Before income tax	After income tax	Before income tax	After income tax
Earnings per common share (Note 4 (22))
Basic earnings per common share
Consolidated net income	$11.86	$ 9.93	$ 8.51	$ 6.65	$10.28	$ 8.92	$ 0.32	$ 0.28
Minority interest income	(0.84)	(0.82)	(0.26)	(0.18)	(0.12)	(0.08)	(0.00)	(0.00)
Net income attributable to equity holders of
the Company	$11.02	$ 9.11	$ 8.25	$ 6.47	$10.16	$ 8.84	$ 0.32	$ 0.28
Diluted earnings per common share
Consolidated net income	$11.77	$ 9.85	$ 8.40	$ 6.55	$10.19	$ 8.84	$ 0.32	$ 0.28
Minority interest income	(0.83)	(0.81)	(0.26)	(0.18)	(0.11)	(0.08)	(0.00)	(0.00)
Net income attributable to equity holders of
the Company	$10.94	$ 9.04	$ 8.14	$ 6.37	$10.08	$ 8.76	$ 0.32	$ 0.28

See report of independent accountants dated April 9, 2010.

	Capital Stock		Retained Earnings		Other Adjustments of  stockholders’ Equity		Treasury  stock	Minority interest	Total
	Common stock	Capital  Reserves	Legal reserve	Undistributed earnings	Unrealized gain or loss on financial  instruments	Cumulative translation  Adjustments
2007 - New Taiwan Dollars
Balance at January 1, 2007	$ 51,681,388	$51,090,954	$17,273,084	$120,838,282	$ 18,463,531	$ 3,831,336	($ 18,901)	$22,256,700	$ 285,416,374
Appropriation of 2006 earnings
Legal reserve	-	-	5,982,083	( 5,982,083)	-	-	-	-	-
Cash dividends	-	-	-	(15,504,416)	-	-	-	-	( 15,504,416)
Stock dividends	10,336,278	-	-	(10,336,278)	-	-	-	-	-
Employees' stock bonus	890,000	-	-	( 890,000)	-	-	-	-	-
Employees' bonus	-	-	-	( 1,357,017)	-	-	-	-	(1,357,017)
Adjustments due to changes in equities of long-term investments	-	1,880,455	-	-	4,558,117	-	-	-	6,438,572
Consolidated net income for 2007	-	-	-	77,689,512	-	-	-	6,998,848	84,688,360
Unrealized gain on financial assets	-	-	-	-	12,885,348	-	-	-	12,885,348
Cumulative translation adjustment	-	-	-	-	-	7,378,978	-	-	7,378,978
Minority interest	-	-	-	-	-	-	-	3,558,493	3,558,493
Balance at December 31, 2007	$ 62,907,666	$52,971,409	$23,255,167	$164,458,000	$ 35,906,996	$11,210,314	($ 18,901)	$32,814,041	$ 383,504,692
2008-New Taiwan Dollars
Balance at January 1, 2008	$ 62,907,666	$52,971,409	$23,255,167	$164,458,000	$ 35,906,996	$11,210,314	($ 18,901)	$32,814,041	$ 383,504,692
Appropriation of 2007 earnings
Legal reserve	-	-	7,768,951	( 7,768,951)	-	-	-	-	-
Cash dividends	-	-	-	(18,872,300)	-	-	-	-	( 18,872,300)
Stock dividends	9,436,150	-	-	( 9,436,150)	-	-	-	-	-
Employees' stock bonus	1,802,420	-	-	( 1,802,420)	-	-	-	-	-
Employees' bonus	-	-	-	( 3,791,224)	-	-	-	-	(3,791,224)
Consolidated net income for 2008	-	-	-	55,133,175	-	-	-	1,556,811	56,689,986
Unrealized loss on financial assets	-	-	-	-	(24,147,242)	-	-	-	( 24,147,242)
Adjustments due to changes in equities of long-term investments	-	( 27,039)	-	-	( 7,032,701)	-	-	-	(7,059,740)
Cumulative translation adjustment	-	-	-	-	-	9,213,527	-	-	9,213,527
Minority interest	-	-	-	-	-	-	-	(1,216,876)	(1,216,876)
Balance at December 31, 2008	$74,146,236	$52,944,370	$31,024,118	$177,920,130	$4,727,053	$20,423,841	($ 18,901)	$33,153,976	$ 394,320,823

 

 

 

 

			Retained Earnings		Other Adjustments of Stockholders' Equity		Treasury stock	Minority interest	Total
	Common stock	Capital Reserves	Legal reserve	Undistributed earnings	Unrealized gain or loss on financial instruments	Cumulative translation adjustments
2009 - New Taiwan Dollars
Balance at January 1, 2009	$ 74,146,236	$ 52,944,370	$ 31,024,118	$177,920,130	$ 4,727,053	$ 20,423,841	($18,901)	$33,153,976	$ 394,320,823
Appropriation of 2008 earnings (Note)
Legal reserve	-	-	5,513,318	( 5,513,318)	-	-	-	-	-
Cash dividends	-	-	-	( 8,156,086)	-	-	-	-	(8,156,086)
Stock dividends	11,121,935	-	-	(11,121,935)	-	-	-	-	-
Employees' stock bonus	521,148	3,448,441	-	-	-	-	-	-	3,969,589
Consolidated net income for 2009	-	-	-	75,685,105	-	-	-	695,188	76,380,293
Unrealized gain on financial assets	-	-	-	-	10,131,530	-	-	-	10,131,530
Adjustments due to changes in equities of long-term investments	-	915,894	-	-	2,044,334	-	-	-	2,960,228
Cumulative translation adjustment	-	-	-	-	-	( 5,901,759)	-	-	(5,901,759)
Minority interest	-	-	-	-	-	-	-	1,006,361	1,006,361
Balance at December 31, 2009	$ 85,789,319	$ 57,308,705	$ 36,537,436	$228,813,896	$16,902,917	$ 14,522,082	($18,901)	$ 34,855,525	$ 474,710,979
2009-US Dollars (Unaudited) ( Note 2)
Balance at January 1, 2009	$2,336,787	$1,668,590	$977,754	$5,607,316	$ 148,977	$ 643,676	($ 596)	$1,044,878	$12,427,382
Appropriation of 2008 earnings
Legal reserve	-	-	173,757	( 173,757)	-	-	-	-	-
Cash dividends	-	-	-	( 257,047)	-	-	-	-	(257,047)
Stock dividends	350,518	-	-	( 350,518)	-	-	-	-	-
Employees' stock bonus	16,424	108,681	-	-	-	-	-	-	125,105
Consolidated net income for 2009	-	-	-	2,385,285	-	-	-	21,910	2,407,195
Unrealized gain on financial assets	-	-	-	-	319,305	-	-	-	319,305
Adjustments due to changes in equities of  long-term investments	-	28,865	-	-	64,429	-	-	-	93,294
Cumulative translation adjustment	-	-	-	-	-	(185,999)	-	-	(185,999)
Minority interest	-	-	-	-	-	-	-	31,716	31,716
Balance at December 31, 2009	$2,703,729	$1,806,136	$1,151,511	$7,211,279	$ 532,711	$ 457,677	($ 596)	$1,098,504	$14,960,951

 

 

 

	2007	2008	2009	2009
	NT$	NT$	NT$	US$
				(Unaudited)
				(Note 2)
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 84,688,360	$ 56,689,986	$ 76,380,293	$2,407,195
Adjustments to reconcile consolidated net income
to net cash provided by operating activities:
Provision (reversal of allowance) for doubtful
accounts	1,755,240	( 529,448)	1,283,511	40,451
Depreciation	21,995,690	28,011,120	32,931,489	1,037,866
Amortization of intangible and other assets	4,172,319	4,725,011	5,467,374	172,309
Loss (gain) on disposal of property, plant and
equipment, net	30,659	( 237,815)	18,600	586
Loss on impairment	52,193	3,162,701	2,036,878	64,194
Loss on valuation of financial assets and
liabilities, net	3,026	238,403	24,266	765
Provision for inventory obsolescence and market
price decline	2,212,888	2,087,131	1,398,857	44,086
Investment income accounted for under the
equity method	( 3,644,203)	( 1,600,428)	( 2,841,913)	(89,565)
Cash dividends from long-term investments	1,211,788	1,151,931	922,585	29,076
accounted for under the equity method
(Gain) loss on disposal of investments	( 597,324)	5,021	( 761,501)	(23,999)
Amortization of discount of convertible bonds
payable	398,400	398,400	341,642	10,767
Changes in assets and liabilities:
Financial assets at fair value through profit or loss	3,011,592	(14,842)	( 145,952)	( 4,600)
Notes receivable	24,870	104,046	( 9,791,677)	( 308,594)
Accounts receivable	(42,206,662)	( 4,603,918)	(26,928,881)	( 848,688)
Accounts receivable - related parties	3,172,564	( 5,005,799)	( 4,819,608)	( 151,894)
Inventories	(34,281,367)	( 7,016,003)	(15,653,364)	( 493,330)
Other receivables	( 9,029,919)	( 8,576,002)	( 6,224,179)	( 196,161)
Prepayments	( 389,472)	1,384,967	( 1,258,155)	(39,652)
Accounts payable	59,529,513	(11,909,374)	29,276,102	922,663
Accounts payable - related parties	6,074,264	( 3,942,996)	5,149,545	162,293
Accrued expenses	1,903,447	10,620,665	7,047,026	222,093
Accrued warranty liabilities	-	1,936,262	3,122,254	98,401
Income tax payable	4,841,238	( 233,217)	627,796	19,785
Other payables and other current liabilities	719,708	( 3,324,945)	4,288,274	135,149
Receipts in advance	-	-	1,411,793	44,494
Accrued pension liabilities	103,168	31,609	51,738	1,631
Deferred income tax liabilities	( 274,160)	( 131,355)	( 3,389,896)	( 106,836)
Net cash provided by operating activities	105,477,820	63,421,111	99,964,897	3,150,485
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(87,634,306)	(69,866,509)	(26,975,006)	( 850,142)
Increase in intangible assets and other assets	( 3,756,134)	( 7,042,764)	( 5,539,327)	( 174,577)
Acquisition of land use right	( 7,843,231)	( 5,173,911)	( 1,693,617)	(53,376)
Increase in long-term equity investments	( 7,070,412)	( 1,833,693)	( 1,781,598)	(56,149)
Acquisition of financial assets carried at cost	-	( 545,469)	( 404,115)	(12,736)
Acquisition of available-for-sale financial assets	( 1,008,063)	-	-	-
Proceeds from disposal of property, plant and
equipment	5,116,408	2,812,526	2,940,104	92,660
(Increase) decrease in other financial assets -
non-current	( 112,644)	517,861	( 3,431,587)	( 108,150)
Financial assets / liabilities at fair value through profit
or loss	(54,652)	394	( 192,013)	( 6,051)
Refund from capital reduction in long-term
investments	164,819	-	-	-
Proceeds from disposal of funds and investments	1,194,128	57,093	1,463,123	46,112
Net cash used in investing activities	( 101,004,087)	(81,074,472)	(35,614,036)	( 1,122,409)

(Continued)

	2007	2008	2009	2009
	NT$	NT$	NT$	US$
				(Unaudited)
				(Note 2)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in short-term loans	$ 63,850,960	($ 47,383,263)	$ 22,946,135	$723,169
Increase in long-term loans, net	-	33,948,000	-	-
Increase in bonds payable	-	5,180,000	6,820,000	214,939
Redemption of bonds payable	-	-	( 5,960,600)	( 187,854)
Payment of long-term loans	(66,723)	(32,404)	-	-
Increase (decrease) in other liabilities - other	1,529,128	(64,461)	529,544	16,689
Payment of cash dividends	(15,504,416)	(18,872,300)	( 8,156,086)	( 257,047)
Payment of employees’ bonus	( 1,357,017)	( 2,093,084)	( 739,070)	(23,292)
Increase (decrease) in minority interest	3,558,493	( 1,216,876)	1,006,361	31,716
Net cash provided by (used in) financing activities	52,010,425	(30,534,388)	16,446,284	518,320
Net effect of changes in foreign currency exchange rates	1,621,569	4,265,804	( 2,396,373)	(75,524)
Changes in consolidated entities with no cash flow effect	100,340	( 1,311,832)	-	-
Net increase (decrease) in cash and cash equivalents	58,206,067	(45,233,777)	78,400,772	2,470,872
Cash and cash equivalents at beginning of year	86,170,078	144,376,145	99,142,368	3,124,562
Cash and cash equivalents at end of year	$144,376,145	$ 99,142,368	$177,543,140	$5,595,434
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	$4,838,830	$6,879,078	$2,403,281	$ 75,742
Cash paid during the year for income tax	$ 11,881,978	$ 16,232,519	$ 14,379,641	$453,188
Cash paid for the acquisition of property, plant and
equipment
Increase in property, plant and equipment	$ 90,783,223	$ 71,008,780	23,056,407	726,644
Add: Payable – beginning balance	3,851,062	6,939,849	8,068,285	254,279
Less: Payable - ending balance	( 6,939,849)	( 8,068,285)	( 4,058,968)	( 127,922)
Effect of changes in foreign currency exchange rates	(60,130)	(13,835)	(90,718)	( 2,859)
Cash paid	$ 87,634,306	$ 69,866,509	$ 26,975,006	$850,142
Investing activities with no cash flow effect:
Unrealized gain (loss) on financial instruments
Adjustment for change in value of available-for-sale
financial assets	$ 12,885,348	($ 24,147,242)	$ 10,131,530	$319,305
Valuation of long-term investments accounted for
under the equity method	4,558,117	( 7,032,701)	2,044,334	64,429
	$ 17,443,465	($ 31,179,943)	$ 12,175,864	$383,734
Cumulative translation adjustments	$7,378,978	$9,213,527	($5,901,759)	($185,999)