Via Technologies, Inc. and Subsidiaries Consolidated Financial Statements for the Six Months Ended June 30, 2015 and 2014-1 -
CONSOLIDATED BALANCE SHEETS June 30, 2015 (Reviewed) December 31, 2014 (Audited) June 30, 2014 (Reviewed) ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents $ 1,312,849 17 $ 1,863,275 20 $ 1,604,927 16 Financial assets at fair value through profit or loss - current 43,860 1 347,453 4 324,489 3 Available-for-sale financial assets - current 23,624-3,559-41,205 1 Debt investments with no active market - current 438,897 6 375,068 4 326,264 3 Notes receivable 4,558-2,014-1,679 - Trade receivables, net 187,920 3 262,728 3 471,726 5 Trade receivables - related parties 29,450-126,778 1 92,443 1 Other receivables 97,305 1 90,039 1 161,791 2 Inventories 464,076 6 538,416 6 747,754 8 Other current assets 252,812 3 233,114 2 230,237 2 Total current assets 2,855,351 37 3,842,444 41 4,002,515 41 NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current 444,380 6 592,417 6 575,729 6 Financial assets measured at cost - non-current 110,959 1 122,967 1 129,784 1 Investments accounted for using equity method 817,515 11 1,155,879 12 1,330,318 14 Property, plant and equipment 2,305,899 30 2,344,010 25 2,432,390 25 Investment properties, net 576,243 8 585,495 6 563,496 6 Intangible assets 265,595 3 338,912 4 390,985 4 Deferred tax assets 27,687-60,087 1 92,506 1 Refundable deposits 142,100 2 142,002 2 136,026 1 Prepaid pension cost 45,981 1 45,981 1 45,322 - Long-term prepayments for lease 101,775 1 103,837 1 99,069 1 Other non-current assets 577-577 - 577 - Total non-current assets 4,838,711 63 5,492,164 59 5,796,202 59 TOTAL $ 7,694,062 100 $ 9,334,608 100 $ 9,798,717 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Financial liabilities at fair value through profit or loss - current $ 132 - $ - - $ - - Notes payable 2,656-1,382-1,256 - Trade payables 376,533 5 459,995 5 555,195 6 Trade payables - related parties 252-140 - 100 - Other payables - related parties 816,556 11 837,459 9 468,283 5 Other payables 1,065,802 14 1,295,938 14 1,192,573 12 Current tax liabilities 59,597 1 64,585-58,114 1 Provisions - current 19,943-19,292-19,914 - Current portion of long-term borrowings 806,431 10 278,805 3 252,257 2 Temporary receipts 18,581-1,108,424 12 1,043,955 11 Other current liabilities 340,288 4 257,027 3 343,906 3 Total current liabilities 3,506,771 45 4,323,047 46 3,935,553 40 NON-CURRENT LIABILITIES Long-term borrowings 2,281,607 30 2,591,889 28 2,530,368 26 Long-term bills payable 468,788 6 491,799 5 419,541 4 Accrued pension liabilities 77,933 1 77,723 1 19,871 - Other non-current liabilities 3,807-3,536-2,107 - Total non-current liabilities 2,832,135 37 3,164,947 34 2,971,887 30 Total liabilities 6,338,906 82 7,487,994 80 6,907,440 70 EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT Share capital 4,933,034 64 4,933,034 53 4,933,034 50 Capital surplus - change in equity from investments in associates 403-403 - 384 - Accumulated deficits (3,871,756) (50) (3,418,373) (37) (2,303,641) (23) Other equity Exchange differences on translating foreign operations 52,658 1 90,434 1 (33,299) - Unrealized gain or loss on available-for-sale financial assets 4,650 - (2,206) - 27,796 - Total other equity 57,308 1 88,228 1 (5,503) - Total equity attributable to owners of the parent 1,118,989 15 1,603,292 17 2,624,274 27 NON-CONTROLLING INTERESTS 236,167 3 243,322 3 267,003 3 Total equity 1,355,156 18 1,846,614 20 2,891,277 30 TOTAL $ 7,694,062 100 $ 9,334,608 100 $ 9,798,717 100-2 -
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Amount % Amount % Amount % Amount % OPERATING REVENUE $ 1,077,185 100 $ 2,029,386 100 $ 2,210,900 100 $ 3,715,249 100 OPERATING COSTS 808,875 75 1,320,532 65 1,648,401 74 2,522,378 68 GROSS PROFIT 268,310 25 708,854 35 562,499 26 1,192,871 32 OPERATING EXPENSES Selling and marketing expenses 281,552 26 264,237 13 547,684 25 543,306 15 General and administrative expenses 93,172 8 114,850 6 181,059 8 190,461 5 Research and development expenses 319,584 30 291,965 14 662,293 30 601,947 16 Total operating expenses 694,308 64 671,052 33 1,391,036 63 1,335,714 36 (LOSS) PROFIT FROM OPERATIONS (425,998) (39) 37,802 2 (828,537) (37) (142,843) (4) NON-OPERATING INCOME AND EXPENSES Other income 45,103 4 54,500 2 118,190 5 119,934 3 Other gains and losses 449,420 42 6,301-428,254 20 57,749 2 Finance costs (20,378) (2) (21,979) (1) (39,976) (2) (41,729) (1) Share of loss of associates (116,303) (11) (127,453) (6) (106,649) (5) (449,457) (12) Total non-operating income and expenses 357,842 33 (88,631) (5) 399,819 18 (313,503) (8) LOSS BEFORE INCOME TAX (68,156) (6) (50,829) (3) (428,718) (19) (456,346) (12) INCOME TAX EXPENSE (17,309 ) (2 ) (26,677 ) (1 ) (35,316 ) (2 ) (43,545 ) (1 ) NET LOSS FOR THE PERIOD (85,465) (8) (77,506) (4) (464,034) (21) (499,891) (13) OTHER COMPREHENSIVE INCOME AND LOSS Exchange differences on translating foreign operations (27,650) (3) (49,023) (3) (37,776) (2) (25,153) (1) Unrealized gain or loss on available-for-sale financial assets 9,459 1 (5,505) - 10,352 1 6,129 - Total other comprehensive loss for the period, net of income tax (18,191) (2) (54,528) (3) (27,424) (1) (19,024) (1) TOTAL COMPREHENSIVE LOSS FOR THE PERIOD $ (103,656) (10) $ (132,034) (7) $ (491,458) (22) $ (518,915) (14) NET LOSS ATTRIBUTABLE TO: Owners of the parent $ (77,548) (7) $ (74,308) (4) $ (453,383) (21) $ (491,923) (13) Non-controlling interests (7,917) (1) (3,198) - (10,651) - (7,968) - (Continued) - 3 -
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Amount % Amount % Amount % Amount % $ (85,465 ) (8 ) $ (77,506 ) (4 ) $ (464,034 ) (21 ) $ (499,891 ) (13 ) TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO: Owners of the parent $ (99,235) (9) $ (128,836) (7) $ (484,303) (22) $ (510,947) (14) Non-controlling interests (4,421) (1) (3,198) - (7,155) - (7,968) - $ (103,656 ) (10 ) $ (132,034 ) (7 ) $ (491,458 ) (22 ) $ (518,915 ) (14 ) LOSS PER SHARE Basic $ (0.16) $ (0.15) $ (0.92) $ (1.00) (Concluded) - 4 -
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Equity Attributable to Owners of the Parent Other Equity Exchange Unrealized Differences on Gain (Loss) on Total Equity Translating Available-for- Attributable to Accumulated Foreign sale Financial Owners of Non-controlling Share Capital Capital Surplus Deficits Operations Assets the Parent Interests Total Equity BALANCE, JANUARY 1, 2014 $ 4,933,034 $ 384 $ (1,811,718) $ (8,146) $ 21,667 $ 3,135,221 $ 274,971 $ 3,410,192 Net loss for the six months ended June 30, 2014 - - (491,923) - - (491,923) (7,968) (499,891) Other comprehensive income and loss for the six months ended June 30, 2014 - - - (25,153) 6,129 (19,024) - (19,024) Total comprehensive income and loss for the six months ended June 30, 2014 - - (491,923) (25,153) 6,129 (510,947) (7,968) (518,915) BALANCE, JUNE 30, 2014 $ 4,933,034 $ 384 $ (2,303,641) $ (33,299) $ 27,796 $ 2,624,274 $ 267,003 $ 2,891,277 BALANCE, JANUARY 1, 2015 $ 4,933,034 $ 403 $ (3,418,373) $ 90,434 $ (2,206) $ 1,603,292 $ 243,322 $ 1,846,614 Net loss for the six months ended June 30, 2015 - - (453,383) - - (453,383) (10,651) (464,034) Other comprehensive income and loss for the six months ended June 30, 2015 - - - (37,776) 6,856 (30,920) 3,496 (27,424) Total comprehensive income and loss for the six months ended June 30, 2015 - - (453,383) (37,776) 6,856 (484,303) (7,155) (491,458) BALANCE, JUNE 30, 2015 $ 4,933,034 $ 403 $ (3,871,756) $ 52,658 $ 4,650 $ 1,118,989 $ 236,167 $ 1,355,156-5 -
CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended June 30 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Loss before income tax $ (428,718) $ (456,346) Adjustments for: Depreciation (including investment properties) 84,849 90,578 Amortization 81,604 98,459 Amortization of prepayments for lease 1,207 1,158 Finance costs 39,976 41,729 Interest income (6,328) (14,284) Dividend income (576) (648) (Gain) loss on disposal of property, plant and equipment (5,791) 2,393 Gain on disposal of intangible assets (871,704) (66,858) Gain on disposal of investments (223) (28,549) Share of the loss of associates 106,649 449,457 Changes in operating assets and liabilities Financial assets at fair value through profit or loss 451,630 (267,378) Notes receivable (2,544) 2,925 Trade receivables 74,808 12,781 Trade receivables - related parties 97,328 147,638 Other receivables (14,283) (50,970) Inventories 74,340 165,455 Other current assets (19,776) (22,948) Financial liabilities at fair value through profit or loss 132 - Notes payable 1,274 765 Trade payables (83,462) 105,504 Trade payables - related parties 112 (45) Other payables (202,032) (165,234) Temporary receipts (9,062) 1,019,277 Provisions 651 (14,255) Accrued pension liabilities 210 (1,247) Other current liabilities 83,261 7,061 Cash generated from operations (546,468) 1,056,418 Dividend received 576 648 Interest received 6,545 14,592 Interest paid (41,219) (39,229) Income tax paid (7,826) (86,141) Net cash (used in) provided by operating activities (588,392) 946,288 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds on sale of available-for-sale financial assets 510 - Purchase of debt investments with no active market (120,590) (144,974) Proceeds on sale of debt investments with no active market 56,761 120,109 Proceeds from capital reduction of financial assets measured at cost 1,060 - (Continued) - 6 -
CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended June 30 2015 2014 Payments for investments accounted for using the equity method - (1,388,066) Proceeds from disposal of subsidiaries 5,191 - Payments for property, plant and equipment (59,000) (53,655) Proceeds from disposal of property, plant and equipment 7,825 3,180 Increase in refundable deposits (6,923) (5,809) Decrease in refundable deposits 4,415 6,078 Payments for intangible assets (28,584) (20,478) Proceeds from disposal of intangible assets - 489,285 Payments for investment properties - (80) Net cash used in investing activities (139,335) (994,410) CASH FLOWS FROM FINANCING ACTIVITIES Increase in long-term bills payable - 3,116,263 Decrease in long-term bills payable - (3,200,000) Proceeds from long-term borrowings 350,000 540,000 Repayments of long-term borrowings (155,321) (660,410) Decrease in other payables - related parties (20,903) (42,873) Increase in guarantee deposits received 1,749 - Decrease in guarantee deposits received (1,477) (1,529) Net cash provided by (used in) financing activities 174,048 (248,549) EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES 3,253 17,061 NET DECREASE IN CASH AND CASH EQUIVALENTS (550,426) (279,610) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,863,275 1,884,537 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,312,849 $ 1,604,927 (Concluded) - 7 -