CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2011 AND 2010 Unit:NT$ thousand 2011/12/31 2010/12/31 Amount % Amount % ASSESTS Current Assets Cash and cash equivalents $8,096,620 16.82 $8,700,536 17.29 Financial assets measured at fair value through profit or loss - current 14,260 0.03 6,078 0.01 Available-for-sale financial assets - current 0 0.00 0 0.00 Notes receivable - net 268,994 0.56 36,287 0.07 Accounts receivable - net 6,246,532 12.98 6,260,735 12.44 Accounts receivable - related parties - net 67,813 0.14 75,717 0.15 Other receivables 93,607 0.19 126,646 0.25 Inventories 5,009,390 10.41 5,207,918 10.35 Other current assets 415,153 0.86 714,065 1.42 Current assets 20,212,369 42.00 21,127,982 41.99 Funds and Investments Financial assets measured at fair value through profit or loss - non current 53,921 0.11 308,690 0.61 Available-for-sale financial assets - non current 2,573,634 5.35 3,456,658 6.87 Financial assets carried at cost - non current 323,227 0.67 335,494 0.67 Debt investments without active market - non current 50,000 0.10 50,000 0.10 Equity investments under equity method 2,528,334 5.25 2,545,788 5.06 Funds and long-term investments 5,529,116 11.49 6,696,630 13.31 Fixed Assets Cost Land 734,691 1.53 734,464 1.46 Buildings and structures 8,615,446 17.90 8,075,939 16.05 Machinery and equipment 24,365,077 50.63 22,729,759 45.18 Other facilities 1,921,445 3.99 1,825,050 3.63 Fixed assets cost 35,636,659 74.05 33,365,212 66.32 Accumulated depreciation (19,713,548) (40.96) (17,124,614) (34.04) Accumulated impairment - fixed assets (205,540) (0.43) (206,783) (0.41) Construction in process and prepayment for equipments 1,769,942 3.68 996,338 1.98 Fixed assets 17,487,513 36.34 17,030,153 33.85 Intangible Assets Other intangible assets 2,568,980 5.34 2,547,610 5.06 Intangible assets 2,568,980 5.34 2,547,610 5.06 OtherAssets Rental assets 61,079 0.13 60,279 0.12 Idled assets 539,150 1.12 581,148 1.16 Guarantee deposits paid 21,188 0.04 20,797 0.04 Deferred income tax assets - non current 1,247,555 2.59 1,643,483 3.27 Other assets - other 458,808 0.95 604,497 1.20 Other assets 2,327,780 4.84 2,910,204 5.78 TOTAL ASSESTS $48,125,758 100 $50,312,579 100
LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current Liabilities Short-term borrowings 745,000 1.55 1,416,620 2.82 Short-term notes and bills payable 999,316 2.08 544,846 1.08 Financial liabilities measured at fair value through profit or loss - current 765 0.00 163,701 0.33 Notes payable 2,265 0.00 4,543 0.01 Accounts payable 3,092,002 6.42 4,644,031 9.23 Accounts payable - related parties 344,693 0.72 271,240 0.54 Income tax payable 238,843 0.50 272,834 0.54 Accrued expenses 1,306,914 2.72 1,309,895 2.60 Other payables 0 0.00 329,163 0.65 Other current liabilities 775,461 1.61 1,075,415 2.14 Current liabilities 7,505,259 15.60 10,032,288 19.94 Long term Liabilities Bonds payable 6,349,816 13.19 5,912,025 11.75 Long-term borrowings 300,000 0.62 2,200,000 4.37 Long-term liabilities 6,649,816 13.82 8,112,025 16.12 Reserves Other Liabilities Pension reserve / accrued pension liability 267,166 0.56 267,296 0.53 Guarantee deposits received 15,326 0.03 29,934 0.06 Other liabilities 282,492 0.59 297,230 0.59 Liabilities 14,437,567 30.00 18,441,543 36.65 Stockholders' Equity Capital Common stock 22,053,084 45.82 22,017,084 43.76 Capital Surplus Capital surplus - additional paid-in capital 1,029,903 2.14 1,029,003 2.05 Capital surplus - treasury stock transactions 121,617 0.25 121,617 0.24 Capital surplus - long-term equity investments 700,145 1.45 676,316 1.34 Capital surplus - stock option 1,157,631 2.41 1,157,631 2.30 Capital surplus 3,009,296 6.25 2,984,567 5.93 Retained Earnings Legal reserve 988,504 2.05 573,751 1.14 Special reserve 384,635 0.80 0 0.00 Unappropriated retained earnings 7,241,848 15.05 6,593,957 13.11 Retained earnings 8,614,987 17.90 7,167,708 14.25 Stockholders' Equity and Other adjustmen Cumulative translation adjustments 437,596 0.91 (802,642) (1.60) Net loss not recognized as pension cost (3,335) (0.01) (3,566) (0.01) Unrealized gains (losses) on financial instruments (512,790) (1.07) 421,573 0.84 Equity adjustments (78,529) (0.16) (384,635) (0.76) Total Parent Company Stockholders' Equity 33,598,838 69.81 31,784,724 63.18 Minority interest 89,353 0.19 86,312 0.17 Stockholders equity 33,688,191 70.00 31,871,036 63.35 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $48,125,758 100 $50,312,579 100
CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 Unit:NT$ thousand, Except Earnings Per Share 2011/12/31 2010/12/31 Amount % Amount % Sales $25,803,026 103.32 $28,060,598 102.73 Sales returns (128,793) (0.52) (191,539) (0.70) Sales discounts and allowances (701,136) (2.81) (555,236) (2.03) Net Sales 24,973,097 100 27,313,823 100 Cost of sales (19,668,084) (78.76) (19,589,288) (71.72) Gross profit (loss) from operations 5,305,013 21.24 7,724,535 28.28 Selling expense (1,384,615) (5.54) (1,429,123) (5.23) General and administrative expenses (956,285) (3.83) (1,027,780) (3.76) Research and development expenses (403,156) (1.61) (381,529) (1.40) Operating expenses (2,744,056) (10.99) (2,838,432) (10.39) Operating income (loss) 2,560,957 10.25 4,886,103 17.89 Non-Operating Income Interest income 191,928 0.77 76,680 0.28 Inome from long-term equity investments under the equity method 0 0.00 146,362 0.54 Dividends 93,345 0.37 66,726 0.24 Gains on disposal of fixed assets 0 0.00 4,283 0.02 Gains on sale of investments 129 0.00 0 0.00 Foreign exchange gains 0 0.00 127,222 0.47 Rent income 12,915 0.05 20,240 0.07 Revaluation gain on financial assets 29,345 0.12 257,706 0.94 Revaluation gain on financial liabilities 15,955 0.06 0 0.00 Miscellaneous income 123,819 0.50 81,894 0.30 Non-operating revenues and gains 467,436 1.87 781,113 2.86 Non-Operating Expenses Interest expense (246,728) (0.99) (231,935) (0.85) Losses from long-term equity investments under the equity method (61,753) (0.25) 0 0.00 Loss on disposal of fixed assets (2,857) (0.01) 0 0.00 Loss on sale of investments 0 0.00 (6,838) (0.03) Foreign exchange losses (161,599) (0.65) 0 0.00 Revaluation loss on financial liabilities 0 0.00 (261,583) (0.96) Miscellaneous disbursements (166,718) (0.67) (250,127) (0.92) Non-operating expenses and losses (639,655) (2.56) (750,483) (2.75) Income from continuing operations before income tax 2,388,738 9.57 4,916,733 18.00 Income tax expense (698,123) (2.80) (740,632) (2.71) Income from continuing operations $1,690,615 6.77 $4,176,101 15.29 Consolidated net income attributable to parent company $1,667,810 6.68 $4,147,537 15.18 Minority interest income 22,805 0.09 28,564 0.10 Consolidated net income $1,690,615 6.77 $4,176,101 15.29 Primary earnings per share $0.76 $1.89 Diluted earnings per share $0.71 $1.34
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 Unit:NT$ thousand 2011 2010 Amount Amount Cash flows from operating activities: Consolidated net income (loss) $1,690,615 $4,176,101 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and Amortization 2,825,237 3,224,246 Net loss (gain) on disposal of property, plant and equipment and properties leased to others 2,857 (4,283) Financial instrument valuation loss (gain),net (45,300) 3,877 Recovery of loss on inventories 55,157 39,394 Equity in net loss (income) of, net 61,753 (146,362) Net loss (gain) on disposal of investment (129) 6,838 Cash Dividends Received from Equity Method Investees 96,932 52,979 Exchange gain Foreign currency financial instrament 233,709 (579,481) Amortization of discounts on available-for-sale debt securities (10,773) (10,504) Interest expense for bonds payable 204,082 213,379 Deferred income taxes 376,527 291,687 Other Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities Net changes in operating assets and liabilities: 0 (66) Financial liabilities at fair value through profit or loss 128,982 83,756 Decrease (increase) in: Notes receivable (232,707) 1,604 Accounts receivable 14,203 (688,399) Accounts and notes receivables from related parties 7,904 40,097 Income tax refund receivable 2,611 (864) Other receivable 30,428 (43,559) Inventories 143,371 (1,995,396) Other current assets 277,820 (65,320) Notes payable (2,278) (38,932) Accounts payable (1,552,029) 1,146,186 Accounts and notes payables to related parties 73,453 140,864 Income tax payable 6,502 85,768 Accrued expenses (2,981) 246,818 Other current liabilities (20,115) 20,653 Accrued pension costs (130) (33,420) Net cash provided by operating activities 4,365,701 6,167,661 Cash flows from investing activities: Proceeds from disposal of available-for-sale financial assets 556,129 343,035 Acquisition of available-for-sale financial assets (556,000) (444,484) Acquisition of long-term investments accounted for using equity method 0 (6,080) Repayment from capital reduction of investment accounted for using equity method 0 32,129 Capital Reduction of Financial Assets Carried at Cost 18,000 0
Proceeds from disposal of property, plant and equipment (2,520,885) (3,109,618) Acquisition of property, plant and equipment 26,989 59,431 Decrease in refundable deposits (391) (1,484) Increase in other assets (270,953) (499,263) Net cash (used in) investing activities (2,747,111) (3,626,334) Cash flows from financing activities: Net decrease in short-term bank loans (671,620) (19,004) Net increase (decrease) in commercial paper 454,470 (420,104) Increase in long-term loans 300,000 2,200,000 Decrease in long-term loans (2,200,000) (4,500,000) Increase (Decrease) in deposits received (14,608) 16,405 Cash Dividends (549,694) 0 Exercise of Employee Stock Options 36,900 0 Other Financing Activities (24,122) (10,192) Net cash (used in) financing activities (2,668,674) (2,732,895) Effect of Exchange Rate Changes 446,168 (1,136,253) Net Increase/(Decrease) in Cash and Cash Equivalents (603,916) (1,327,821) Cash and Cash Equivalents, Beginning of year 8,700,536 10,028,357 Cash and Cash Equivalents, End of year $8,096,620 $8,700,536 Supplemental information: Interest paid $50,584 $38,046 Capitalized Interest (7,106) (18,017) Net interest paid $43,478 $20,029 Income taxes paid $285,130 $359,842 Non-cash Investing and Financing Activities Reclassification of deferred charges to properties $40,363 $0 Current Portion of Long-term Liabilities $0 $0 Convertible Securities Convert to Common Stock $0 $63,614 Rental Assets Transferred to Idled Assets $0 $92,830 Cash Dividends Payable $0 $329,163 Investing Activities Affecting Both Cash and Non-cash Items Cash Paid for Acquisition of Property, Plant and Equipment Increase in property, plant and equipment $2,241,046 $3,730,867 Increase in payables on equipment 279,839 (621,249) Cash Paid for Acquisition of Property, Plant and Equipment $2,520,885 $3,109,618 Other Supplemental Information Proceeds from disposal of available-for-sale financial assets $556,129 $253,216 Decrease in Other Receivables-Disposal of AFS Financial assets 0 89,819 Cash in of available-for-sale financial assets $556,129 $343,035
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 Unit:NT$ thousand, Except Dividends Per Share Shares (Thousands) Amount Capital Surplus Legal Reserve Unappropria ted Retained Earnings Total Cumulative Translation Adjustment s Net Loss Not Recognized as Pension Cost Unrealized Gains or Losses on Financial Instrument Total Parent Company Stockholders ' Equities Minority Interest Total Stockholders Equities Balance, JANUARY 1, 2010 $2,194,862 $21,948,623 $2,983,189 $506,363 $0 $2,843,037 $3,349,400 $1,552,875 ($5,713) $58,684 $29,887,058 $76,345 $29,963,403 Net increase (decrease) in minority interest 0 (10,192) (10,192) Appropriation of prior year's earnings Legal Reserve 67,388 (67,388) 0 0 0 Cash Dividends - NT$0.15 per share (329,229) (329,229) (329,229) (329,229) Consolidated Income in 2010 4,147,537 4,147,537 4,147,537 28,564 4,176,101 Convertible Bonds Conversion 6,846 68,461 (4,847) 63,614 63,614 Accounts and Notes Receivables from Related Parts 208,228 208,228 208,228 Effect of changes in percentages of ownership of 3,134 3,134 3,134 Equity in the changes in capital surplus reported by 3,091 3,091 3,091 equity-method Equity in the changes of unrealized gain or loss on financial assets and liabilities reported by equity-method 154,661 154,661 154,661 Equity in the changes of net loss not recognized as pension cost reported by equity-method 2,147 2,147 2,147 Translation adjustments (2,355,517) (2,355,517) (8,405) (2,363,922) Balance, DECEMBER 31, 2010 2,201,708 22,017,084 2,984,567 573,751 0 6,593,957 7,167,708 (802,642) (3,566) 421,573 31,784,724 86,312 31,871,036 Net increase (decrease) in minority interest 0 (24,122) (24,122) Exercise of Employee Stock Options 3,600 36,000 900 36,900 36,900 Appropriation of prior year's earnings Legal Reserve 414,753 (414,753) 0 0 0 Special Reserve Appropriated 384,635 (384,635) 0 0 0 Cash Dividends - NT$0.10 per share (220,531) (220,531) (220,531) (220,531) Consolidated Income in 2011 1,667,810 1,667,810 1,667,810 22,805 1,690,615 Accounts and Notes Receivables from Related Parts (928,521) (928,521) (928,521) Effect of changes in percentages of ownership of 21,747 21,747 21,747 Equity in the changes in capital surplus reported by 2,082 2,082 2,082 equity-method Equity in the changes of unrealized gain or loss on financial assets and liabilities reported by equity-method (5,842) (5,842) (5,842) Equity in the changes of net loss not recognized as pension cost reported by equity-method Capital Stock Issued Retained Earnings Others 231 231 231 Translation adjustments 1,240,238 1,240,238 4,358 1,244,596 Balance, DECEMBER 31, 2011 2,205,308 $22,053,084 $3,009,296 $988,504 $384,635 $7,241,828 $8,614,987 $437,596 ($3,335) ($512,790) $33,598,838 $89,353 $33,688,191