26th Sep 2012 07:45
HON HAI PRECISION INDUSTRY CO., LTD.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
REPORT OF INDEPENDENT ACCOUNTANTS
JUNE 30, 2011 AND 2012
For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE
To the Board of Directors and Stockholders:
Hon Hai Precision Industry Co., Ltd.
We have reviewed the accompanying consolidated balance sheets of Hon Hai Precision Industry Co., Ltd. and its subsidiaries as of June 30, 2011 and 2012, and the related consolidated statements of income, of changes in stockholders' equity and of cash flows for the six-month periods then ended, expressed in thousands of New Taiwan dollars. These financial statements are the responsibility of the Company's management. Our responsibility is to issue a report on these financial statements based on our reviews. We did not reviewthe financial statements of certain consolidated subsidiaries which statements reflect total assets of $167,258,168,000 and $161,307,895,000, constituting 10.83% and 8.42% of the consolidated total assets as of June 30, 2011 and 2012, respectively, and total revenues of $87,003,699,000 and $74,442,939,000, constituting 5.74% and 3.93% of the consolidated total operating revenues for the six-month periods then ended, respectively. Those statements were reviewed by other auditors, whose reports thereon have been furnished to us, and our conclusion expressed herein, insofar as it relates to the amounts included for these subsidiaries, is based solely on the reports of the other auditors.
Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 36, "Review of Financial Statements" in the Republic of China. A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in the Republic of China, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
As described in Notes 1(2) and 4(8), the financial statements of certain consolidated subsidiaries and long-term equity investments accounted for under the equity method were not reviewed by independent accountants, which statements reflect total assets (including long-term equity investments) of $261,524,230,000 and $358,852,646,000, constituting 16.93% and 18.72% of the consolidated total assets, and total liabilities of $255,306,108,000 and $184,915,719,000, constituting 25.21% and 14.27% of the consolidated total liabilities as of June 30, 2011 and 2012, respectively, as well as total net income (including investment income accounted for under the equity method) of $1,124,754,000 and $6,889,249,000, constituting 4.11% and 27.01% of the consolidated net income for the six-month periods then ended, respectively.
Based on our reviews and the reports of other auditors, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and long-term investments been reviewed as explained in the preceding paragraph, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with the "Rules Governing the Preparation of Financial Statements by Securities Issuers" and generally accepted accounting principles in the Republic of China.
As stated in Notes 4(2) and 9, Hon Hai Precision Industry Co., Ltd. entered into an equity subscription contract with Sharp Corporation, a listed company in Japan, as resolved by the board of directors on March 27, 2012. However, Hon Hai Precision Industry Co., Ltd. could not get the approval for equity settlement because it was unable to provide documents before July 31, 2012 as required by the competent authorities. As such, this equity subscription arrangement no longer met the recognition criteria of a forward contract specified in ROC SFAS No. 34, "Accounting for Financial Instruments", and therefore Hon Hai Precision Industry Co., Ltd. and its subsidiary, Foxconn (Far East) Ltd., reversed the loss on valuation of financial liabilities and financial liabilities of NT$ 4,513,255,000, and reversed deferred income tax assets and income tax benefit of NT$ 501,753,000, respectively, on July 31, 2012 for those amounts that had been recognized during the six-month period ended June 30, 2012. The net effect of such reversals was NT$ 4,011,502,000.
Hon Hai Precision Industry Co., Ltd. expects to adopt International Financial Reporting Standards, International Accounting Standards, and Interpretations/bulletins (collectively referred herein as the IFRSs) developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as recognized by the Financial Supervisory Commission, Republic of China and the "Rules Governing the Preparation of Financial Statements by Securities Issuers" that are to be applicable in 2013 in the preparation of consolidated financial statements of Hon Hai Precision Industry Co., Ltd. and its subsidiaries starting from January 1, 2013. Information relating to the adoption of IFRSs by Hon Hai Precision Industry Co., Ltd. is disclosed in Note 13 in accordance with Jin-Guan-Zheng-Shen-Zi Order No. 0990004943 of the former Financial Supervisory Commission, Executive Yuan, Republic of China., dated February 2, 2010. The IFRSs may be subject to changes during the time of transition; therefore, the actual impact of IFRSs adoption on Hon Hai Precision Industry Co., Ltd. and its subsidiaries may also change.
PricewaterhouseCoopers, Taiwan
August 31, 2012
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.
As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
2011 | 2012 | 2012 | |
NT$ | NT$ | US$ | |
ASSETS | |||
Current Assets | |||
Cash and cash equivalents (Note 4(1)) | $296,963,446 | $637,339,044 | 21,329,955 |
Financial assets at fair value through profit or loss - current (Note 4(2)) | 47,935 | 139,524 | 4,669 |
Available-for-sale financial assets - current (Note 4(3)) | 858,749 | 672,254 | 22,498 |
Accounts receivable, net (Notes 4(4)) | 376,369,729 | 413,351,344 | 13,833,713 |
Accounts receivable, net - related parties (Note 5) | 11,321,416 | 14,648,865 | 490,257 |
Other receivables (Notes 4(5) and 5) | 28,053,648 | 32,275,867 | 1,080,183 |
Other financial assets - current (Note 6) | 99,924,789 | 58,416,794 | 1,955,047 |
Inventories, net (Note 4(6)) | 323,578,155 | 309,969,848 | 10,373,824 |
Prepayments (Note 5) | 7,121,256 | 5,479,699 | 183,390 |
Deferred income tax assets - current (Note 4(15)) | 5,522,155 | 6,595,755 | 220,741 |
1,149,761,278 | 1,478,888,994 | 49,494,277 | |
Funds and Investments | |||
Available-for-sale financial assets - non-current | |||
(Note 4(3)) | 7,761,110 | 9,217,880 | 308,497 |
Financial assets carried at cost - non-current (Note 4(7)) | 3,504,819 | 4,057,662 | 135,798 |
Long-term equity investments under the equity method (Note 4(8)) | 36,063,598 | 40,142,079 |
1,343,443 |
Prepayments for long-term investments (Note 4(8)) | 88,332 | 25,775 | 863 |
Other financial assets - non-current (Note 6) | 28,085 | 23,100 | 773 |
47,445,944 | 53,466,496 | 1,789,374 | |
Property, Plant and Equipment (Notes 4(9), 5 and 6) | |||
Cost | |||
Land | 4,209,510 | 4,168,602 | 139,511 |
Buildings and improvements | 128,888,984 | 154,587,408 | 5,173,608 |
Machinery | 215,657,984 | 247,745,283 | 8,291,342 |
Molding equipment | 3,643,244 | 3,104,844 | 103,910 |
Testing equipment | 25,623,091 | 24,914,333 | 833,813 |
Office equipment | 14,827,426 | 15,390,775 | 515,086 |
Tooling equipment | 2,905,642 | 3,275,812 | 109,632 |
Other equipment | 37,110,624 | 41,275,443 | 1,381,374 |
Cost and revaluation | 432,866,505 | 494,462,500 | 16,548,276 |
Less: Accumulated depreciation | (159,117,785) | (180,732,418) | (6,048,608) |
Accumulated impairment | ( 4,749,125) | ( 5,796,077) | (193,978) |
Construction in progress and prepayments for equipment | 41,706,959 | 36,905,859 | 1,235,136 |
310,706,554 | 344,839,864 | 11,540,826 | |
Intangible Assets (Note 4(10)) | |||
Goodwill | 215,474 | 551,166 | 18,446 |
215,474 | 551,166 | 18,446 | |
Other Assets | 215,474 | ||
Deferred charges | 13,006,496 | 14,259,133 | 477,213 |
Other assets - other (Note 4(11)) | 23,411,348 | 24,472,739 | 819,034 |
36,417,844 | 38,731,872 | 1,296,247 | |
TOTAL ASSETS | $1,544,547,094 | $1,916,478,392 | $64,139,170 |
$1,544,547,094 |
(continued)
HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
JUNE 30,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
2011 | 2012 | 2012 | |
NT$ | NT$ | US$ | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities | |||
Short-term loans (Note 4(12)) | $313,200,899 | $473,585,750 | $15,849,590 |
Short-term notes and bills payable (Note 4(13)) | 998,941 | 5,494,490 | 183,885 |
Financial liabilities at fair value through profit or loss - current (Note 4(2)) | 125,086 | 4,573,592 | 153,065 |
Accounts payable | 411,190,411 | 465,309,959 | 15,572,623 |
Accounts payable - related parties (Note 5) | 21,088,896 | 34,541,700 | 1,156,014 |
Income tax payable (Note 4(15)) | 12,285,396 | 11,644,808 | 389,719 |
Accrued expenses (Notes 4(14)(20)) | 61,096,133 | 86,720,463 | 2,902,291 |
Dividends payable (Note 4(22)) | 9,661,248 | 16,033,645 | 536,601 |
Payables for equipment (Note 5) | 12,216,869 | 28,246,181 | 945,321 |
Other payables | 5,282,601 | 5,428,083 | 181,663 |
Receipts in advance | 6,574,344 | 5,686,135 | 190,299 |
Long-term liabilities - current portion (Notes 4(16)(17)) | 20,954,300 | 3,000,000 | 100,402 |
Accrued warranty liabilities | 19,413,227 | 16,056,743 | 537,374 |
Other current liabilities | 4,168,095 | 1,336,069 | 44,715 |
898,256,446 | 1,157,657,618 | 38,743,562 | |
Long-term Liabilities | |||
Bonds payable (Note 4(16)) | 58,621,373 | 77,326,947 | 2,587,917 |
Long-term loans (Note 4(17)) | 48,656,713 | 53,504,834 | 1,790,657 |
107,278,086 | 130,831,781 | 4,378,574 | |
Other Liabilities | |||
Reserve for retirement plan (Note 4(18)) | 1,048,220 | 1,108,190 | 37,088 |
Deferred income tax liabilities - non-current (Note 4(15)) | 2,611,037 | 423,441 | 14,171 |
Other liabilities - other | 3,513,025 | 5,990,395 | 200,482 |
7,172,282 | 7,522,026 | 251,741 | |
Total Liabilities | 1,012,706,814 | 1,296,011,425 | 43,373,877 |
Stockholders' Equity | |||
Stockholders' Equity of Parent Company | |||
Capital stock (Note 4(19)) | |||
Common stock | 96,612,482 | 106,890,967 | 3,577,342 |
Stock dividends distributable | 15,216,376 | 16,563,649 | 554,339 |
Capital reserve (Note 4(21)) | |||
Paid-in capital in excess of par value of common stock | 28,591,137 | 34,724,228 | 1,162,123 |
Capital reserve from conversion of convertible bonds | 18,482,483 | 18,482,483 | 618,557 |
Capital reserve from long-term investments | 14,982,010 | 15,172,516 | 507,781 |
Capital reserve from conversion right (Note 4(16)) | 3,229,640 | 2,034,440 | 68,087 |
Retained earnings (Note 4(22)) | |||
Legal reserve | 51,821,402 | 59,980,502 | 2,007,380 |
Undistributed earnings | 271,293,597 | 318,152,053 | 10,647,659 |
Other adjustments to stockholders' equity | |||
Cumulative translation adjustments | ( 7,293,222) | 10,292,480 | 344,461 |
Unrealized gain or loss on financial instruments (Note 4(3)) | 5,301,623 | 2,676,600 | 89,578 |
Treasury stock | ( 18,901) | ( 18,901) | (633) |
Stockholders' equity of parent company | 498,218,627 | 584,951,017 | 19,576,674 |
Minority interest | 33,621,653 | 35,515,950 | 1,188,619 |
Total stockholders' equity | 531,840,280 | 620,466,967 | 20,765,293 |
Commitments and Contingent Liabilities (Note 7) | |||
Subsequent Events (Note 9) | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,544,547,094 | $1,916,478,392 | $64,139,170 |
The accompanying notes are an integral part of these consolidated financial statements.
See review report of independent accountants dated August 31, 2012.
HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX-MONTH PERIODS ENDED JUNE 30,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT EARNINGS PER SHARE DATA)
(UNAUDITED)
2011 | 2012 | 2012 | ||||
NT$ | NT$ | US$ | ||||
Operating Revenue | ||||||
Sales (Note 5) | $1,515,196,651 | $1,893,202,811 | $63,360,201 | |||
Operating Costs | ||||||
Cost of goods sold (Notes 4(6)(24) and 5) | (1,405,121,972) | (1,755,977,207) | (58,767,644) | |||
Gross profit | 110,074,679 | 137,225,604 | 4,592,557 | |||
Operating expenses (Notes 4(20)(24)) | ||||||
Sales and marketing expenses | (30,802,678) | (46,474,091) | (1,555,358) | |||
General and administrative expenses | (32,498,147) | (34,054,838) | (1,139,720) | |||
Research and development expenses | (18,269,283) | (19,952,629) | (667,759) | |||
Total operating expenses | (81,570,108) | (100,481,558) | (3,362,837) | |||
Operating income | 28,504,571 | 36,744,046 | 1,229,720 | |||
Non-operating income and gains | ||||||
Interest income | 2,330,042 | 6,590,196 | 220,555 | |||
Investment income accounted for under the equity method (Note 4(8)) | 1,824,433 | 1,253,439 | 41,949 | |||
Gain on disposal of investments (Note 4(3)) Foreign exchange gain - net | - 4,859,721 | 1,026,809 - | 34,365 - | |||
Other non-operating income (Note 5) | 3,354,015 | 2,974,632 | 99,553 | |||
Total non-operating income and gains | 12,368,211 | 11,845,076 | 396,422 | |||
Non-operating expenses and losses | ||||||
Interest expense Foreign exchange loss - net | ( 2,394,765) - | ( 4,998,819) ( 305,141) | (167,297)(10,212) | |||
Financing charges (Note 4(4)) | ( 150,627) | ( 123,803) | (4,143) | |||
Impairment loss (Notes 4 (9)) | - | ( 1,780,642) | ( 59,593) | |||
Loss on valuation of financial assets (Note 4(2)) | (491) | (3,568) | (119) | |||
Loss on valuation of financial liabilities (Note 4(2)) | ( 124,525) | ( 4,445,125) | ( 148,766) | |||
Other non-operating losses | ( 380,656) | ( 405,910) | ( 13,585) | |||
Total non-operating expenses and losses | ( 3,051,064) | (12,063,008) | ( 403,715) | |||
Income before income tax | 37,821,718 | 36,526,114 | 1,222,427 | |||
Income tax expense (Note 4(15)) | (10,486,289) | (11,016,719) | ( 368,699) | |||
Consolidated net income | $27,335,429 | $25,509,395 | $853,728 | |||
Attributable to: | ||||||
Equity holders of the Company | $27,384,194 | $27,533,493 | $921,469 | |||
Minority interest | ( 48,765) | ( 2,024,098) | ( 67,741) | |||
$27,335,429 | $25,509,395 | $853,728 | ||||
Before income tax | After income tax | Before income tax | After income tax | Before income tax | After income tax | |
Earnings per common share (Note 4(23)) | ||||||
Basic earnings per common share | ||||||
Consolidated net income | $ 3.22 | $2.33 | $3.10 | $2.17 | $0.10 | $0.07 |
Minority interest income | (0.01) | - | 0.17 | 0.17 | 0.01 | 0.01 |
Net income attributable to equity holders of the Company | $ 3.21 | $2.33 | $3.27 | $2.34 | $0.11 | $0.08 |
Diluted earnings per common share | ||||||
Consolidated net income | $ 3.14 | $2.28 | $3.06 | $2.13 | $0.10 | $0.07 |
Minority interest income | (0.01) | - | 0.16 | 0.17 | 0.01 | 0.01 |
Net income attributable to equity holders of the Company | $ 3.13 | $2.28 | $3.22 | $2.30 | $0.11 | $0.08 |
The accompanying notes are an integral part of these consolidated financial statements.
See review report of independent accountants dated August 31, 2012.
HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE SIX-MONTH PERIODS ENDED JUNE 30,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
Capital Stock | Retained Earnings | Other Adjustments of Stockholders' Equity | ||||||||
Common stock | Stock dividends distributable | Capital reserves | Legal reserve | Undistributed earnings | Cumulative translation adjustments | Unrealized gain or loss on financial instruments | Treasury stock | Minority interest | Total | |
2011-New Taiwan Dollars | ||||||||||
Balance at January 1, 2011 | $96,612,482 | $ - | $65,011,063 | $44,105,947 | $270,947,354 | ($9,330,319) | $13,265,130 | ($18,901) | $32,853,249 | $513,446,005 |
Appropriation of 2010 earnings (Note 1): | ||||||||||
Legal reserve | - | - | - | 7,715,455 | (7,715,455) | - | - | - | - | - |
Cash dividends | - | - | - | - | (9,661,248) | - | - | - | - | (9,661,248) |
Stock dividends | - | 9,661,248 | - | - | (9,661,248) | - | - | - | - | - |
Employees' stock bonus | - | 5,555,128 | - | - | - | - | - | - | - | 5,555,128 |
Consolidated net income for the period | - | - | - | - | 27,384,194 | - | - | - | ( 48,765) | 27,335,429 |
Unrealized loss on financial assets | - | - | - | - | - | - | (6,150,461) | - | - | (6,150,461) |
Adjustments due to changes in equities of long-term investments | - | - | 274,207 | - | - | - | (1,813,046) | - | - | (1,538,839) |
Cumulative translation adjustment | - | - | - | - | - | 2,037,097 | - | - | - | 2,037,097 |
Minority interest | - | - | - | - | - | - | - | - | 817,169 | 817,169 |
Balance at June 30, 2011 | $96,612,482 | $15,216,376 | $65,285,270 | $51,821,402 | $271,293,597 | ($7,293,222) | $ 5,301,623 | ($18,901) | $33,621,653 | $531,840,280 |
2012-New Taiwan Dollars | ||||||||||
Balance at January 1, 2012 | $106,890,967 | $ - | $70,693,639 | $51,821,402 | $325,500,402 | $21,141,456 | $ 1,802,723 | ($18,901) | $37,187,796 | $615,019,484 |
Appropriation of 2011 earnings (Note 2): | ||||||||||
Legal reserve | - | - | - | 8,159,100 | (8,159,100) | - | - | - | - | - |
Cash dividends | - | - | - | - | (16,033,645) | - | - | - | - | (16,033,645) |
Stock dividends | - | 10,689,097 | - | - | (10,689,097) | - | - | - | - | - |
Employees' stock bonus | - | 5,874,552 | - | - | - | - | - | - | - | 5,874,552 |
Consolidated net income for the period | - | - | - | - | 27,533,493 | - | - | - | (2,024,098) | 25,509,395 |
Unrealized loss on financial assets | - | - | - | - | - | - | 1,335,705 | - | - | 1,335,705 |
Adjustments due to changes in equities of long-term investments | - | - | (279,972) | - | - | - | (461,828) | - | - | (741,800) |
Cumulative translation adjustment | - | - | - | - | - | (10,848,976) | - | - | - | (10,848,976) |
Minority interest | - | - | - | - | - | - | - | - | 352,252 | 352,252 |
Balance at June 30, 2012 | $106,890,967 | $16,563,649 | $70,413,667 | $59,980,502 | $318,152,053 | $10,292,480 | $ 2,676,600 | ($18,901) | $35,515,950 | $620,466,967 |
2012- US Dollars (Unaudited) | ||||||||||
Balance at January 1, 2012 | $ 3,577,342 | $ - | $ 2,365,918 | $ 1,734,317 | $10,893,588 | $707,546 | $60,332 | ($ 633) | $ 1,244,571 | $20,582,981 |
Appropriation of 2011 earnings (Note 2): | ||||||||||
Legal reserve | - | - | - | 273,063 | (273,063) | - | - | - | - | - |
Cash dividends | - | - | - | - | (536,601) | - | - | - | - | (536,601) |
Stock dividends | - | 357,734 | - | - | (357,734) | - | - | - | - | - |
Employees' stock bonus | - | 196,605 | - | - | - | - | - | - | - | 196,605 |
Consolidated net income for the period | - | - | - | - | 921,469 | - | - | - | ( 67,741) | 853,728 |
Unrealized loss on financial assets | - | - | - | - | - | - | 44,702 | - | - | 44,702 |
Adjustments due to changes in equities of long-term investments | - | - | (9,370) | - | - | - | ( 15,456) | - | - | ( 24,826) |
Cumulative translation adjustment | - | - | - | - | - | (363,085) | - | - | - | (363,085) |
Minority interest | - | - | - | - | - | - | - | - | 11,789 | 11,789 |
Balance at June 30, 2012 | $ 3,577,342 | $554,339 | $ 2,356,548 | $ 2,007,380 | $10,647,659 | $344,461 | $89,578 | ($633) | $ 1,188,619 | $20,765,293 |
Note 1: Directors' and supervisors' remuneration amounting to $0 and employees' bonus amounting to $5,555,128 had been deducted from the Consolidated Statement of Income in 2010.Note 2: Directors' and supervisors' remuneration amounting to $0 and employees' bonus amounting to $5,874,552had been deducted from the Consolidated Statement of Income in 2011.
The accompanying notes are an integral part of these consolidated financial statements.
See review report of independent accountants dated August 31, 2012.
HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
2011 | 2012 | 2012 | |
NT$ | NT$ | US$ | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Consolidated net income | $ 27,335,429 | $ 25,509,395 | $853,728 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
Depreciation | 19,763,572 | 27,386,303 | 916,543 |
Amortization of intangible and other assets | 2,357,190 | 5,716,935 | 191,330 |
Reversal of allowance for doubtful accounts | (1,183,157) | - | - |
Gain on disposal of property, plant and equipment, net | ( 296,482) | ( 213,139) | ( 7,133) |
Loss on impairment | - | 1,780,642 | 59,593 |
Loss on valuation of financial assets and liabilities, net | 91,163 | 4,481,928 | 149,998 |
Provision for inventory obsolescence and market price decline | 1,325,259 | 1,561,596 | 52,262 |
Investment income accounted for under the equity method | (1,824,433) | (1,253,439) | (41,949) |
Effect of foreign currency translation of bonds payable Amortization of discount on bonds payable | - 315,775 | ( 381,675) 329,845 | (12,774) 11,039 |
Loss (gain) on disposal of investments | 3,234 | (1,026,809) | (34,365) |
Changes in assets and liabilities: | |||
Financial assets at fair value through profit or loss - current | - | 11,312 | 379 |
Accounts receivable | 15,353,169 | 37,406,640 | 1,251,896 |
Accounts receivable - related parties | 7,507,084 | 10,642,946 | 356,190 |
Inventories | (66,052,277) | 63,073,734 | 2,110,901 |
Other receivables | 2,839,637 | 3,808,891 | 127,473 |
Prepayments | (2,000,159) | 1,640,220 | 54,894 |
Accounts payable | 7,446,215 | (54,415,143) | (1,821,123) |
Accounts payable - related parties | (2,447,316) | 5,772,523 | 193,190 |
Accrued expenses | 1,997,327 | 5,272,130 | 176,443 |
Accrued warranty liabilities | 5,859,427 | (5,360,710) | ( 179,408) |
Receipts in advance | ( 234,184) | 101,354 | 3,392 |
Income tax payable | (2,340,608) | (8,294,695) | ( 277,600) |
Accrued pension liabilities | (42,792) | 43,890 | 1,469 |
Other payables and other current liabilities | 1,273,288 | (2,251,190) | ( 75,341) |
Deferred income tax | (1,730,874) | 50,358 | 1,685 |
Net cash provided by operating activities | 15,315,487 | 121,393,842 | 4,062,712 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of property, plant and equipment | (47,837,133) | (21,826,107) | ( 730,459) |
Increase in other assets | (7,854,079) | (5,341,986) | ( 178,781) |
Increase in long-term equity investments | ( 689,284) | ( 585,000) | (19,578) |
Acquisition of land use right | ( 147,097) | (11,639) | (389) |
Increase in other financial assets - current and non-current | (41,633,754) | (12,562,205) | ( 420,422) |
Acquisition of financial assets carried at cost | ( 366,665) | ( 338,610) | (11,333) |
Proceeds from disposal of property, plant and equipment | 780,678 | 2,783,652 | 93,161 |
Financial assets / liability at fair value through profit or loss | ( 112,185) | ( 205,917) | ( 6,891) |
Proceeds from disposal of funds and investments | 7,591 | 6,556,477 | 219,427 |
Acquisition of available-for-sale financial assets | ( 107,944) | (7,552,438) | ( 252,759) |
Proceeds from disposal of land use right | 1,788,666 | - | - |
Net cash used in investing activities | (96,171,206) | (39,083,773) | (1,308,024) |
(Continued )
HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE SIX-MONTH PERIODS ENDED JUNE 30,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(UNAUDITED)
2011 | 2012 | 2012 | |
NT$ | NT$ | US$ | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Increase in short-term loans | $ 111,817,899 | $ 213,063,001 | $7,130,623 |
(Decrease) increase in other liabilities-other | ( 420,484) | 1,251,420 | 41,882 |
Increase in minority interest | 817,169 | 352,252 | 11,789 |
Increase in long-term loans | 12,103,923 | 4,583,900 | 153,410 |
Payment of long-term loans | (5,819,060) | (3,336,750) | ( 111,672) |
Increase in bonds payable | 13,050,000 | 15,000,000 | 502,008 |
Decrease in short-term notes and bills payable | (8,592,347) | (2,494,822) | (83,495) |
Net cash provided by financing activities | 122,957,100 | 228,419,001 | 7,644,545 |
Net effect of changes in foreign currency exchange rates | 620,742 | (3,183,659) | ( 106,548) |
Net increase in cash and cash equivalents | 42,722,123 | 307,545,411 | 10,292,685 |
Cash and cash equivalents at beginning of period | 254,241,323 | 329,793,633 | 11,037,270 |
Cash and cash equivalents at end of period | $ 296,963,446 | $ 637,339,044 | $ 21,329,955 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the period for interest | $1,539,380 | $3,757,630 | $125,757 |
Cash paid during the period for income tax | $13,101,110 | $17,921,629 | $599,787 |
Cash paid or on credit for the acquisition of property, plant and equipment | |||
Increase in property, plant and equipment | $48,813,450 | $22,231,033 | $744,011 |
Add: Payable - beginning balance | 11,197,683 | 28,177,904 | 943,036 |
Less: Payable - ending balance | (12,216,869) | (28,246,181) | ( 945,321) |
Effect of changes in foreign currency exchange rates | 42,869 | ( 336,649) | (11,267) |
Cash paid | $47,837,133 | $21,826,107 | $730,459 |
Investing activities with no cash flow effect: | |||
Unrealized loss on financial instruments | |||
Adjustment for change in value of available-for-sale financial assets | ($6,150,461) | $1,335,705 | $ 44,702 |
Valuation of long-term investments accounted for under the equity method | (1,813,046) | (461,828) | (15,456) |
($7,963,507) | $ 873,877 | $ 29,246 | |
Financing activities with no cash flow effect: | |||
Cash dividends payable | $9,661,248 | $16,033,645 | $536,601 |
Employees' stock bonus payable | $5,555,128 | $5,874,552 | $196,605 |
Increase (decrease) in cumulative translation adjustments | $2,037,097 | ($10,848,976) | ($363,085) |
The accompanying notes are an integral part of these consolidated financial statements.
See review report of independent accountants dated August 31, 2012
Should the format of the tables in this announcement be corrupted or difficult to read, please follow the link below:
http://www.rns-pdf.londonstockexchange.com/rns/1684N_1-2012-9-26.pdf
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