1st Oct 2007 09:01
Hon Hai Precision Industry Co Ld01 October 2007 HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2003, 2004 AND 2005 These English financial statements and report of independent accountants,expressed in thousands of New Taiwan dollars, were translated from the financialstatements and report of independent accountants originally prepared in Chinese. REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors and Stockholders of Hon Hai Precision Industry Co., Ltd. We have audited the accompanying consolidated balance sheets of Hon HaiPrecision Industry Co., Ltd. and its subsidiaries as of December 31, 2003, 2004and 2005, and the related consolidated statements of income, of changes instockholders' equity and of cash flows for the years then ended, expressed inthousands of New Taiwan dollars. These consolidated financial statements arethe responsibility of the Company's management. Our responsibility is toexpress an opinion on these consolidated financial statements based on ouraudits. We did not audit the financial statements of certain consolidatedsubsidiaries which statements reflect total assets of $57,092,811,000,$67,211,411,000 and $103,758,322,000 (US$3,158,548,615), constituting 25.26%,22.15% and 22.60% of the respective consolidated totals as of December 31, 2003,2004 and 2005 and total revenue of $69,347,735,000, $112,093,864,000 and$204,745,854,000 (US$6,232,750,502) constituting 17.21%, 20.70% and 22.46% ofthe respective consolidated totals for the years then ended. Other auditors,whose reports have been furnished to us, audited these statements and ouropinion expressed herein, in so far as it relates to these amounts, is basedsolely on the reports of the other auditors. We conducted our audits in accordance with the 'Rules Governing theExaminations of Financial Statements by Certified Public Accountants! andgenerally accepted auditing standards in the Republic of China. Those standardsrequire that we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements, assessing the accounting principlesused and significant estimates made by management, and evaluating the overallfinancial statement presentation. We believe that our audits and the reports ofother auditors provide a reasonable basis for our opinion. In our opinion, based on our audits and the reports of other auditors, theconsolidated financial statements referred to above paragraph present fairly, inall material respects, the financial position of Hon Hai Precision Industry Co.,Ltd. and its subsidiaries as of December 31, 2003, 2004 and 2005, and theresults of their operations and their cash flows for the years then ended inconformity with the 'Rules Governing the Preparation of Financial Statementsof Securities Issuers! and generally accepted accounting principles in theRepublic of China. The consolidated financial statements of Hon Hai Precision Industry Co., Ltd.and its subsidiaries for the year ended December 31, 2005 expressed in USdollars are presented solely for the convenience of the readers and weretranslated from the New Taiwan dollar financial statements using the exchangerate prevailing at December 31, 2005 (US$1.00:NT$32.85). This basis oftranslation is not in accordance with generally accepted accounting principlesin the Republic of China. April 22, 2006Taipei, TaiwanRepublic of China The accompanying consolidated financial statements are not intended to presentthe financial position, results of operations and cash flows in accordance withaccounting principles and practices generally accepted in countries andjurisdictions other than the Republic of China. The standards, procedures andpractices in the Republic of China governing the audit of such consolidatedfinancial statements may differ from those generally accepted in countries andjurisdictions other than the Republic of China. Accordingly, the accompanyingfinancial statements and report of the independent accountants are not intendedfor use by those who are not informed about the accounting principles orauditing standards generally accepted in the Republic of China, and theirapplications in practice. HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, (EXPRESSED IN THOUSANDS OF DOLLARS) 2003 2004 2005 2005 New Taiwan Dollars US Dollars (Restated) (Unaudited) (Note 2)ASSETSCurrent Assets Cash and cash equivalents (Note 4 (1)) $ 26,123,070 $ 45,289,096 $ 58,428,150 $ 1,778,635 Short-term investments (Note 4 (2)) 14,824,539 2,209,869 2,551,345 77,666 Notes receivable - third parties (Note 4 (3)) 808,877 2,315,837 4,192,223 127,617 Accounts receivable - third parties (Note 4 74,027,652 103,310,068 185,566,843 5,648,915(4)) Accounts receivable - related parties (Note 843,836 3,049,929 5,085,376 154,8065) Other receivables (Note 5) 4,068,711 3,836,466 4,701,641 143,125 Inventories (Note 4 (5)) 38,198,424 63,634,975 83,426,364 2,539,615 Prepayments (Note 5) 813,105 2,253,773 1,495,672 45,530 Deferred income tax assets-current (Note 4 177,745 400,187 717,092 21,829(8)) 159,885,959 226,300,200 346,164,706 10,537,738Long-term Investments (Note 4 (6)) Long-term equity investments accounted for 7,998,988 7,550,699 9,482,259 288,653under the equity method Long-term equity investments accounted for 6,756,607 6,993,470 7,075,277 215,382under the cost method Prepaid long-term investments - 95,130 814,023 24,780 14,755,595 14,639,299 17,371,559 528,815Other Financial Assets - Non-Current (Note 6) 25,840 45,784 435,095 13,245Property, Plant and Equipment (Notes 4 (7), 5and 6) Cost Land 1,665,912 1,810,134 2,178,977 66,331 Buildings and improvements 12,891,312 15,756,538 24,573,633 748,056 Machinery 37,400,706 44,821,087 61,987,254 1,886,979 Molding equipment 3,057,411 2,810,865 3,175,930 96,680 Testing equipment 2,800,164 4,354,868 6,353,634 193,413 Furniture and fixtures 2,544,277 3,405,596 5,124,822 156,007 Tooling equipment 861,716 895,259 1,383,163 42,105 Miscellaneous equipment 4,147,272 4,898,654 5,884,536 179,134 65,368,770 78,753,001 110,661,949 3,368,705 Less : Accumulated depreciation ( 20,961,562) ( 26,863,466) ( 34,352,667) ( 1,045,743) Accumulated impairment loss !V property, - ( 95,013) ( 263,303) ( 8,015)plant and equipment Prepayments for equipment and 4,935,300 7,376,883 12,709,874 386,906construction in progress 49,342,508 59,171,405 88,755,853 2,701,853Intangible Assets (Note 2) Goodwill 107,034 95,533 2,222,786 67,665 Other intangible assets 994,946 1,205,765 2,106,749 64,132 1,101,980 1,301,298 4,329,535 131,797Other Assets Deferred charges 6,486 1,295,664 1,190,032 36,226 Other assets - others 879,201 608,941 736,137 22,409 885,687 1,904,605 1,926,169 58,635 TOTAL ASSETS $225,997,569 $303,362,591 $458,982,917 $ 13,972,083 (Continued on next page) HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED) DECEMBER 31, (EXPRESSED IN THOUSANDS OF DOLLARS) 2003 2004 2005 2005 New Taiwan Dollars US Dollars (Restated) (Unaudited) (Note 2)LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short-term loans (Note 4 (9)) $ 6,620,367 $ 29,080,064 $ 17,903,924 $ 545,020 Accounts payable - third parties 64,247,320 96,103,663 165,751,688 5,045,713 Accounts payable - related parties (Note 5) 3,768,566 3,797,520 11,937,479 363,394 Income tax payable (Note 4 (8)) 1,744,802 2,094,414 4,670,074 142,164 Accrued expenses (Note 5) 16,634,491 14,559,169 23,059,092 701,951 Other payables (Note 5) 3,119,237 3,692,722 5,883,626 179,106 Current portion of long-term liabilities 4,616,281 14,385,179 10,766,748 327,755(Notes 4 (10) and 4 (11) Other current liabilities (Note 10) 2,137,636 2,977,156 5,266,382 160,316 102,888,700 166,689,887 245,239,013 7,465,419Long-term Liabilities Bonds payable (Note 4 (10)) 20,309,000 8,622,514 12,128,749 369,216 Long-term loans (Note 4 (11)) 999,717 112,887 - - 21,308,717 8,735,401 12,128,749 369,216Other Liabilities Reserve for retirement plan (Note 4 (12)) 517,002 643,499 704,998 21,461 Deferred income tax liabilities (Note 4 (8)) 2,192,543 2,560,257 3,955,188 120,401 Other liabilities - others 319,166 1,143,703 865,188 26,338 3,028,711 4,347,459 5,525,374 168,200 Total liabilities 127,226,128 179,772,747 262,893,136 8,002,835Stockholders' Equity Capital stock (Note 4 (13))Common stock 27,571,989 32,310,231 40,383,231 1,229,322New share entitlement certificates - - 558,980 17,016 Capital reserve (Notes 4 (14) and 4(15)) Paid-in capital in excess of par value 14,703,241 14,703,241 14,703,241 447,587 Capital reserve from conversion of - 3,256 16,345,350 497,575convertible bonds Changes in equities of long-term investments 3,911 55,397 9,819,844 298,930 Retained earnings (Note 4 (15)) Legal reserve 6,772,239 9,294,724 12,267,340 373,435 Special reserve - - 1,292,815 39,355 Unappropriated earnings 48,528,661 65,231,579 85,795,704 2,611,742 Other adjustments of stockholders' equity Unrealized loss on decline in market value ( 210,645) ( 160,910) ( 85,462) ( 2,601)of long-term equity investments Cumulative translation adjustment 1,175,233 ( 1,131,905) 1,080,741 32,899 Treasury stock ( 18,901) ( 18,901) ( 18,901) ( 575) Stockholder's equity of parent company 98,525,728 120,286,712 182,142,883 5,544,685 Minority interest 245,713 3,303,132 13,946,898 424,563 Total stockholders' equity 98,771,441 123,589,844 196,089,781 5,969,248Commitments and Contingent Liabilities (Note 7)Subsequent Events (Note 9)TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $225,997,569 $303,362,591 $458,982,917 $ 13,972,083 The accompanying notes are an integral part of these financial statements. See report of independent accountants dated April 22, 2006. To view the full text of this announcement, please follow the link below: http://www.rns-pdf.londonstockexchange.com/rns/8334e_-2007-10-1.pdf This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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