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Report to Shareholders
The technology industry is evolving rapidly. Quanta would continue the hard
work, discipline and creative thinking to provide the best service to our customers.
Moreover, Quanta will be a better company winning through this competitive
environment. We will thrive to earn more order allocations, and at the same time
maintain our leadership.
Quanta is a 21-year-old growth company. Product diversity is important in this
industry. We not only grow from notebook replaces desktop accelerating, but also
enjoy netbook emerging around the world. We will continue to build innovative
notebook and non-notebook product lines, where we will differentiate ourselves in a
global technology industry.
Quanta’s performance for FY2008 and outlook are as follows:
I. Revenue and Income
In the tough 2008, Quanta managed to report growth in both revenues and
notebook unit shipment. Net revenues was NT$763.1BN in year 2008, an increase of
NT$30.7BN from NT$732.4BN in 2007 or 4.19% in annual growth. The total
notebook shipment was approximately 36.8 million units. Both revenues and
shipment reached historical high out of the disruptive financial crisis.
Gross margin in 2008 was 4.28%. After-tax net income was NT$20.2BN, an
increase of NT$1.8BN from NT$18.4BN in 2007 or 9.61% in annual growth. EPS in
2008 was 5.58. Non-operating income and expenses were NT$11.6BN and
NT$2.0BN, respectively.
II. Research and Development (R&D)
We will sharpen our innovative skills in every aspect, from technology
innovation, design creativity, procurement process, manufacturing procedure, quality
control to management schemes. All is to create value and drive profit. We would
continuously challenge ourselves to think outside the box, not only on the task
fulfillment but also on the mindset of every project planning.
Quanta is inspired by the value of: seeking the truth in technology, the kindness
in human being and the beauty in sensation. The combination of technology and
humanity would empower the design capability, and this is the source of our
competitive advantages. The unique character of this company provides a great
potential in gaining new business opportunities and overall profitability.
We set the target of being the leader in the industry: provide best quality product,
match speedy delivery, maintain substantial profit and serve customers as our top
priority. We also believe products that improve people’s living standards and help
save costs would be the longer lasting innovation. Therefore, Quanta Research
Institutions would build up closer relationship with MIT for further product
development.
III. Operations and Management
The global economy is experiencing profound disruption, and a great deal of
anxiety is therefore widely spread. There is no assurance of when the situation will
bottom out. But Quanta prepare itself for the worst and aiming for the best we could
become. We will emerge stronger, and we endeavor on pushing below objectives in
this downturn:
Credit Risk Management: to avoid possible default risk, it is crucial to
make sure all payments are well received before due.
Inventory Control Management: to understand customers’ intention
and product roadmap, take initiatives on inventory control before any
potential components write-off.
Expenses Down: to make sure every dollar count and reduce all
unnecessary expenses
Source Quality and Cheap Components: to execute comprehensive
adoption of cheaper components but with no quality to sacrifice.
IV. Outlook in 2008
Despite the negative impact from global economic downturn, we believe Quanta
will outperform the industry. And our confidence is grounded in the strategic
transformation of four core vision, which are Quality, Speed, Margin and Customer
Satisfaction, or in short – QSMC.
We are perfecting our approach on customer satisfaction. With best quality,
price, performance and delivery, we thrive to perform better than what was
anticipated or requested by customers. We focus on the fundamentals - humble and
enthusiastic, creative and responsible, efficient and reliable. Quanta will be a stronger
company winning through this crisis. And we have all the confidence to outshine in
2009.
Chairman: Barry Lam
President: C.C. Leung
Chief Financial Officer: Tim Li
QuantaInt’l Ltd.
(QIL)
QuantaStorage
Inc.
QuantaVentureCapital
Co.
QuantaNetwork
Capital Co.QCTI Ltd.
QuantaMicrosystems
Inc.
RoyalTekCompany
Ltd.
DataOnSystems
Inc.
TWDTPrecisionCo.,Ltd.
QCJ
QCEComputer
BV(QCE)
AccessInt’lCo.
(AIC)
QuantaAsiaLtd.
(QAL)
DGT (BVI)Ltd.
QuantaCapital
Manage-ment Ltd.(QCML)
QuantaManufac-turing
Inc.(QMI)
Tech-Front(Shanghai)ComputerCo.,Ltd.
Tech-Com(Shanghai)ComputerCo.,Ltd.
Tech-Lead(Shanghai)ComputerCo.,Ltd.
Tech-Giant(Shanghai)ComputerCo.,Ltd.
Tech-Trend(Shanghai)ComputerCo.,Ltd.
Tech-Wave(Shanghai)
WarehouseingCo.,Ltd
Tech-Full(Changshu)ComputerCo.,Ltd.
QuantaService
Inc.(QSI)
QuantaComputerUSA, Inc.
(QCA)
QCHInc.
(QCH)
QMNLLC
QSN,LLC
QCN,LLC
QCHN,LLC
QCGComputer
GMBH
QuantaDevelopment
Ltd.(QDL)
Quanta Int’lTechnology
Ltd.(QIT)
Q_BbusInt’lLtd.
Quanta Computer Inc.
29.26% 99.99% 30.11% 75.57% 37.26% 99.90% 37.00%
Quanta Development (Hong Kong)
Ltd.
Fly Dragon Int'l Ltd.
Exmore Services
Holding Ltd.
Dragon CityMetallic
(Changshu)Co., Ltd.
Exmore ServicesHolding
(Hong Kong)Ltd.
Tech Chain Ltd.
Tech Chain(Hong Kong)
Ltd.
Gem-Tech(Shanghai)Precision Co., Ltd
ChangshuZhan YunElectronicsCo., Ltd.
Zhan Yun(Shanghai)Electronics
Co., Ltd.
Independent Auditors’ Report
The Board of Directors and Shareholders of Quanta Computer Inc.:
We have audited the accompanying consolidated balance sheets of Quanta Computer Inc. and its
subsidiaries (the Consolidated Company) as of December 31, 2008 and 2007, and the related
consolidated statements of income, changes in stockholders’ equity, and cash flows for the years then
ended. These consolidated financial statements are the responsibility of the consolidated Company’s
management. Our responsibility is to express an opinion on these financial statements based on our
audits.
We conducted our audits in accordance with “Rules Governing Auditing and Certification of
Financial Statements by Certified Public Accountants” and auditing standards generally accepted in
the Republic of China. Those regulations and standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and
disclosures in the consolidated 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 provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Quanta Computer Inc. and its subsidiaries as of December
31, 2008 and 2007, and the results of its operations and its consolidated cash flows for the years then
ended in conformity with Guidelines Governing the Preparation of Financial Reports by Securities
Issuers, and accounting principles generally accepted in the Republic of China.
As described in Note 3, to the consolidated financial statements effective January 1, 2008, the
consolidated Company adopted the Republic of China Statement of Financial Accounting Standards
(SFAS) No. 39 “Accounting for Share-Based Payment” and Interpretation (96)052 issued by
Accounting Research and Development Foundation. The consolidated Company had classified,
measured, and disclosed employee bonuses and remuneration to directors and supervisors in
accordance with the newly released standard and interpretation, decreasing the after-tax income and
earnings per share by NT$1,523,978 thousand and NT$0.42, respectively, for the year ended
December 31, 2008.
KPMG
CPA: Charlotte Lin
Leoufong Yang
March 31, 2009
Note to Readers
The accompanying financial statements are intended only to present the financial position, results of operations and cash flows in accordance with the
accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and
practices to audit such financial statements are those generally accepted and applied in the Republic of China. The auditors’ report and the accompanying financial statements are the English translation of the Chinese version prepared and used in the Republic of
China. If there is any conflict between, or any difference in the interpretation of, the English and Chinese language auditors’ report financial statements,
the Chinese version shall prevail.
Amount % Amount %
ASSETS
Current Assets:
Cash and cash equivalents (Notes (2) and (4)(a)) 59,221,542$ 20 46,279,382 14
Financial assets reported at fair value through profit or loss - current (Notes (2) and (4)(b)) 645,641 - 518,461 -
Available-for-sale financial assets - current (Notes (2) and (4)(b)) 27,247,241 9 18,685,414 6
Held-to-maturity financial assets - current (Notes (2) and (4)(b)) - - 488,848 -
Financial assets carried at cost - current (Notes (2) and (4)(b)) 89,134 - 83,882 -
Notes receivable, net 8,775 - 16,359 -
Accounts receivable, net of allowance for doubtful accounts
and sales allowances (Notes (2) and (4)(c))
– Related parties (Note (5)) 192,163 - 25,151 -
– Other customers 102,302,760 34 128,311,618 40
Other receivables, net of allowance for doubtful accounts
– Related parties (Note (5)) 578,147 - 18,595 -
– Non-related parties 480,974 - 450,697 -
Other financial assets - current 151,301 - 309,965 -
Inventories (Notes (2) and (4)(d)) 50,317,159 17 76,164,775 23
Prepayments 910,942 - 645,181 -
Other current assets - other 1,749,244 1 773,287 -
Deferred income tax assets - current (Notes (2) and 4 (l)) 2,749,275 1 1,610,288 1
246,644,298 82 274,381,903 84
Investments:
Financial assets reported at fair value through profit or loss - noncurrent (Notes (2) and (4)(b)) 430,772 - 447,410 -
Available-for-sale financial assets - noncurrent (Notes (2) and (4)(b)) 202,910 - - -
Held-to-maturity financial assets - noncurrent (Notes (2) and (4)(b)) 50,065 - 50,083 -
Financial assets carried at cost - noncurrent (Notes (2) and (4)(b)) 9,278,638 3 10,130,875 4
Long-term investments at equity (Notes (2) and (4)(e)) 566,486 - 1,015,120 -
10,528,871 3 11,643,488 4
Other Financial Assets - Noncurrent 236,898 - 212,575 -
Property, Plant, and Equipment, at cost (Notes (2) and (4)(f) and (6)):
Land 2,070,431 1 2,000,789 1
Buildings 20,459,551 7 16,559,613 5
Machinery and equipment 26,615,685 9 21,075,167 7
Molds and tools 192,158 - 57,009 -
Transportation equipment 125,005 - 113,892 -
Furniture and office facilities 1,332,984 - 1,238,288 -
Leasehold improvements 680,426 - 242,915 -
Miscellaneous equipment 1,945,352 1 1,478,237 -
53,421,592 18 42,765,910 13
Less: Accumulated depreciation (11,973,552) (4) (8,055,806) (2)
Less: Accumulated impairment (213,075) - (266,752) -
Construction in progress 918,187 - 198,326 -
Prepayments for equipment 189,189 - 1,094,310 -
42,342,341 14 35,735,988 11
Intangible Assets (Note (2)): 1,358,490 - 1,230,736 -
Other Assets:
Idled assets (Notes (2) and (4)(g)) 62,559 - 76,863 -
Rental assets (Notes (2) and (4)(g)) 2,016,467 1 2,027,220 1
Restricted assets (Note (6)) 25,810 - 20,344 -
Other assets (Note (2)) 379,209 - 481,066 -
2,484,045 1 2,605,493 1
TOTAL ASSETS 303,594,943$ 100 325,810,183 100
The accompanying notes are an integral part of the consolidated financial statements.
December 31, 2008 December 31, 2007
DECEMBER 31, 2008 AND 2007
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY Amount % Amount %
Current Liabilities:
Short-term debt (Note (4)(h)) 34,033,513$ 11 29,784,899 9
Financial liabilities reported at fair value through profit or loss – current (Notes (2) and (4)(b)) 18,596 - 144,891 -
Notes payable 130,706 - 93,612 -
Accounts payable
– Related parties (Note (5)) 2,092,652 1 7,669,663 2
– Vendors 117,563,259 39 152,237,533 46
Income tax payable 4,139,506 1 2,494,055 1
Accrued expenses (Note (5)) 9,753,897 3 6,706,907 2
Other payables (Note (5)) 3,075,519 1 5,687,440 2
Other financial liabilities – current 2,498,143 1 2,087,605 1
Convertible corporate bonds – current portion (Notes (2) and (4)(i)) - - 936,801 -
Current portion of long-term debt (Note (4)(j)) 3,114,431 1 2,111,850 1
Warranty reserve (Note (2)) 11,671,463 4 9,220,688 3
Other current liabilities 2,134,332 1 246,591 -
190,226,017 63 219,422,535 67
Long-Term Liabilities:
Convertible corporate bonds – noncurrent (Notes (2) and (4)(i)) 6,394,263 2 6,401,862 2
Long-term debt (Note (4)(j)) 13,453,009 5 5,198,400 2
Other financial liabilities – noncurrent 60,171 - 39,097 -
19,907,443 7 11,639,359 4
Other Liabilities:
Deferred income tax liabilities – noncurrent (Notes (2) and (4)(l)) 825,664 - 3,858 -
Other liabilities 1,428 - 1,281 -
827,092 - 5,139 -
Total Liabilities 210,960,552 70 231,067,033 71
Stockholders' Equity: Common stock - authorized 4,000,000 thousand shares, 3,649,526 thousand shares issued
Common stock - and outstanding in 2008; 3,475,268 thousand shares issued and outstanding in 2007
Common stock - (Note (4)(m)) 36,495,262 12 34,752,682 11
Capital Surplus (Note (2)):
Premium on stock issuance 6,702,065 2 6,702,065 2
Treasury stock 32,692 - 13,479 -
Donated surplus 44 - 44 -
Long-term investments at equity 530,500 - 552,238 -
7,265,301 2 7,267,826 2
Retained Earnings:
Legal reserve (Note (2)) 12,494,201 4 10,649,548 3
Retained earnings – unappropriated (Note (4)(o)) 33,594,067 11 29,215,289 9
46,088,268 15 39,864,837 12
Other Adjustments to Stockholders' Equity:
Cumulative translation adjustments (Note (2)) 1,960,241 1 955,074 -
Unrealized (loss) gain on financial instruments (Note (2)) (3,691,498) (1) 5,184,331 2
(1,731,257) - 6,139,405 2
Treasury Stock (Notes (2) and (4)(p)) (2,042,225) (1) (634,810) -
Total parent Company's Equity 86,075,349 28 87,389,940 27
Minority Interest 6,559,042 2 7,353,210 2
Total Stockholders' Equity 92,634,391 30 94,743,150 29
Commitments and Contingencies (Note (7))
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 303,594,943$ 100 325,810,183 100
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONT'D)
December 31, 2008 December 31, 2007
The accompanying notes are an integral part of the consolidated financial statements.
DECEMBER 31, 2008 AND 2007
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
Amount % Amount %
Operating revenues (Note (2)) 833,022,874$ 102 786,390,417 101
Less: Sales returns (12,017,674) -2 (7,418,681) (1)
Less: Sales allowances (2,267,285) - (1,535,603) -
Net sales 818,737,915 100 777,436,133 100
Cost of goods sold (773,856,494) -95 (737,157,760) (95)
Gross margin 44,881,421 5 40,278,373 5
Realized gross profit – beginning of the year 112 - 29 -
Unrealized gross profit – end of the year (73) - (112) -
44,881,460 5 40,278,290 5
Operating expenses
Selling expenses (10,677,628) -1 (10,599,971) (1)
General and administrative expenses (5,572,343) -1 (4,596,035) (1)
Research and development expenses (7,313,565) -1 (5,331,057) (1)
(23,563,536) -3 (20,527,063) (3)
Income from operations 21,317,924 2 19,751,227 2
Non-operating income
Interest income 1,636,919 - 1,283,793 -
Dividend income 1,392,154 - 427,977 -
Gain on disposal of investments 675,270 - 823,426 -
Foreign exchange gains, net (Note (2)) 5,777,793 1 3,879,548 -
Gain on valuation of financial assets (Notes (2) and (4)(b)) 129,368 - 55,857 -
Gain on valuation of financial liabilities (Notes (2) and (4)(b)) 142,106 - - -
Other income 3,820,187 - 2,779,138 -
13,573,797 1 9,249,739 -
Non-operating expenses
Interest expense (2,204,590) - (2,552,950) -
Investment loss recognized under equity method (Notes (2) and (4)(e)) (328,786) - (100,304) -
Other investment loss (Note (2)) (802,918) - (290,829) -
Loss for market price decline and obsolete and slow-moving inventories (Note (2)) (1,354,272) - (349,125) -
Loss on disposal of obsolescence and scrapping (1,490,245) - (609,913) -
Loss on valuation of financial liabilities (Notes (2) and (4)(b)) - - (11,412) -
Miscellaneous disbursements (1,100,673) - (903,159) -
(7,281,484) - (4,817,692) -
Income before income tax 27,610,237 3 24,183,274 2
Income tax expense (Notes (2) and (4)(l)) (6,484,856) -1 (4,569,062) (1)
Consolidated net income 21,125,381$ 2 19,614,212 1
Income attributable to :
Shareholders of parent company 20,229,322$ 2 18,454,601 1
Minority interest income 896,059 - 1,159,611 -
21,125,381$ 2 19,614,212 1
Before Tax After Tax Before Tax After Tax
Earnings per share attributable to parent company (Notes (2)and (4)(q))
Primary earnings per share 6.96$ 5.58 6.37$ 5.33
Diluted earnings per share 6.63$ 5.31 6.17$ 5.16
Primary earnings per share–retroactively adjusted 6.07$ 5.08
Diluted earnings per share–retroactively adjusted 5.88$ 4.92
Assuming that company shares held by its subsidiaries are not regarded as
treasury stock:
Pro-forma primary earnings per share 6.93$ 5.55 6.35$ 5.31
Pro-forma diluted earnings per share 6.60$ 5.29 6.15$ 5.14
2007
For The Years Ended December 31,
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2008 AND 2007
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
The accompanying notes are an integral part of the financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
2008
2008 2007
Amount Amount
Cash flows from operating activities:
Consolidated net income 21,125,381$ 19,614,212
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 4,114,758 4,603,437
Depreciation of rental assets and idle assets 25,295 26,391
(Reversal) Provision for impairment loss on property, plant and equipment assets (90,196) 158,234
Amortization of corporate bonds issue cost 8,236 16,477
Amortization of discount on issuance of convertible corporate bonds transferred to interest expenses 48,578 71,570
Provision for doubtful accounts and sales allowances 620,249 369,841
Deferred expenses transferred to non-operating income (38,832) -
Provision for impairment loss of idle assets 44,223 171,481
Provision for warranty reserve 2,332,808 3,378,392
Loss on disposal and retirement of property, plant and equipment, net 120,055 114,783
Provision for inventory market price decline and obsolescence 1,354,272 349,125
Gain on disposal of intangible assets (2,488) -
Loss on long-term investments at equity over cash dividends received 370,133 165,035
Loss on permanent market decline on long-term investments at equity 89,985 -
Loss on permanent market decline on available-for-sale financial assets 9,068 -
Loss on permanent market decline on financial assets carried at cost 703,865 290,829
Gain on disposal of financial assets carried at cost (215,654) (13,872)
Amortization of discount on held-to-maturity financial assets (8,904) (9,454)
Gain on redemption of convertible corporate bonds 164,109 -
Foreign exchange rate effect on long-term debts 63,200 (78,181)
Foreign exchange rate effects 64,338 (41,583)
Change in assets and liabilities:
Financial assets reported at fair value through profit or loss - current (121,781) 688,182
Notes receivable 7,595 (3,937)
Accounts receivable 34,892,545 (68,963,496)
Inventories 27,057,554 (29,777,339)
Other receivables and other financial assets - current (785,032) 5,256,356
Prepayments and other current assets (1,151,904) (90,810)
Deferred income tax assets, net (647,474) 87,667
Financial liabilities reported at fair value through profit or loss - current 16,440 (14,566)
Notes payable 37,018 9,608
Accounts payable (51,383,199) 89,245,096
Accrued expenses 2,897,846 888,698
Income tax payable 1,610,619 802,529
Other payables and other financial liabilities - current (2,718,349) 318,668
Other current liabilities 1,891,202 (679,622)
Other liabilities 38,842 23,964
Net cash provided by operating activities 42,544,401 26,977,715
(English Translation of Financial Report Originally Issued in Chinese)
The accompanying notes are an integral part of the consolidated financial statements.
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Year Ended December 31
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2008 2007
Amount Amount
Cash flows from investing activities:
Increase in financial assets reported at fair value through profit or loss - noncurrent (128,001)$ (445,000)
(Increase) decrease in available-for-sale financial assets - current (17,440,928) 19,289,081
Increase in available-for-sale financial assets - noncurrent (21,582) (11,075)
Decrease in financial assets carried at cost - current 35,966 26,208
Increase in long-term investments at equity (81,256) (125,625)
Cash paid for subsidiary and minority shareholder acquisition (853,421) (558,402)
Increase in financial assets carried at cost - noncurrent (323,926) (479,944)
Proceeds from return of financial assets carried at cost 265,830 10,134
Proceeds from sale of financial assets carried at cost - noncurrent 276,638 -
(Increase) decrease in held-to-maturity financial assets - current 497,752 (50,083)
Decrease in held-to-maturity financial assets - noncurrent 18 -
Purchase of property, plant and equipment (8,522,300) (10,804,354)
Purchase of rental assets (121) (845)
Proceeds from sale of property, plant and equipment 895,175 1,907,175
Increase in intangible assets (211,754) (141,767)
(Increase) decrease in restricted deposits (5,466) 70,238
Increase in other financial assets - noncurrent (13,195) (179,892)
Increase in other assets (189,800) (378,246)
Net cash (used in) provided by investing activities (25,820,371) 8,127,603
Cash flows from financing activities:
Increase (decrease) in short-term debt 1,867,034 (4,154,397)
Repayment of current portion of long-term debt (3,130,472) (1,880,888)
Increase in long-term debt 12,235,669 -
Decrease in convertible corporate bonds (1,268,904) (1,751,955)
Increase other financial liabilities - noncurrent 3,679 34,667
Distribution of cash dividends (12,704,316) (8,833,617)
Employee bonuses and remuneration to directors and supervisors (117,826) (116,000)
Conversion of employee stock options 2,839 14,068
Conversion of employee stock options - -
Purchase of treasury stock (1,577,601) -
Transfer treasury stock to employees - 66,025
Issuance of stocks for cash 65,000 90,125
Changes in minority interest - 662,234
Net cash (used in) financing activities (4,624,898) (15,869,738)
Foreign exchange rate effects 843,028 (298,527)
Effect of amended requirement for consolidation of subsidiaries - -
Effect of changing consolidated entities
Effect of translation adjustments - -
Net Increase in cash and cash equivalents 12,942,160 18,937,053
Cash and cash equivalents, beginning of the year 46,279,382 27,342,329
Cash and cash equivalents, end of the year 59,221,542$ 46,279,382
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest (excluding capitalized interest) 2,280,413$ 2,424,786
Income tax 5,512,374$ 3,652,900
Non-cash investing and financing activities:
Current portion of long-term debt 2,363,647$ 0
Current portion of long-term debt and convertible corporate bonds 3,114,431$ 9,450,513
Current portion of convertible corporate bonds
Construction in progress and prepayments for equipment transferred to other assets
Financial assets reported at fair value through profit or loss transferred from noncurrent to current 145,000$ 80,000
Financial assets carried at cost - current transferred to available-for-sale financial assets - current 65,887$ 7,981
Financial assets carried at cost - noncurrent transferred from noncurrent to current 93,370$ 53,508
Financial assets carried at cost - noncurrent transferred to available-for-sale financial assets - noncurrent 38,642$ -
Financial assets carried at cost - noncurrent transferred to available-for-sale financial assets - current 103,509$ -
Long-term investments under equity method transferred to available-for-sale financial assets - current -$ -
Long-term investments under equity method transferred to financial assets carried at cost - noncurrent -$ -
Other receivables transferred to return of financial assets carried at cost - noncurrent -$ 61,200
Deferred expenses transferred to intangible assets
Other receivables from return of capital
Other receivables transferred to dividend income
Employee bonuses and remuneration to directors and supervisors payable 55,000$ 77,000
Cash dividends payable 190,404$ 57,200
Purchase of property and equipment with cash and other payables:
Property, plant and equipment 8,832,448$ 10,848,307
Add: Other payable, beginning of the year 790,744 746,791
Less: Other payable, end of the year (1,100,892) (790,744)
Cash paid 8,522,300$ 10,804,354
(English Translation of Financial Report Originally Issued in Chinese)
The accompanying notes are an integral part of the consolidated financial statements.
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
For The Year Ended December 31
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2008 2007
Amount Amount
Assets and liabilities of the subsidiaries acquired at fair market value are as follows:
Cash -$ 205,804
Notes receivable and accounts receivable - 2,433,858
Other receivable - 5,442
Inventories - 908,001
Prepayments - 137,981
Other current assets - 7,205
Property, plant and equipment - 1,511,096
Other assets - 63,821
Short-term dabt - (1,238,418)
Notes payable and accounts payable - (2,000,414)
Accrued expenses - (74,310)
Income tax payable - (16,148)
Other payables - (75,952)
Other current liabilities - (14,718)
Minority interest - (1,089,042)
Total cash inflow - 764,206
Cash balance of subsidiaries on the acquisition date - (205,804)
Cash paid for the subsidiary acquisition -$ 558,402
The accompanying notes are an integral part of the financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
For The Year Ended December 31,
Common Capital Legal
Unappropriated
Retained
Unrealized Gain
or Loss on
Financial
Cumulative
Translation Minority Total
Stock Surplus Reserve Earnings Treasury Stock Instruments Adjustments Interest
Balance as of January 1, 2007 33,630,080$ 7,123,162 9,358,952 21,659,480 (634,810) 1,065,497 194,963 4,852,421 77,249,745
2006 earnings distribution:
Legal reserve - - 1,290,596 (1,290,596) - - - - -
Remuneration to directors and supervisors - - - (40,000) - - - - (40,000)
Cash dividends - - - (8,407,520) - - - - (8,407,520)
Employee bonuses 450,000 - - (480,000) - - - - (30,000)
Stock dividends 672,602 - - (672,602) - - - - -
Employee bonuses distributed by subsidiaries - - - (8,074) - - - (16,926) (25,000)
Consolidated net income for the year ended December 31, 2007 - - - 18,454,601 - - - 1,159,611 19,614,212
Issuance of new shares for cash from minority stakeholders - - - - - - - 90,125 90,125
Cash dividends distributed by minority stakeholders - - - - - - - (483,297) (483,297)
Changes in minority interests - - - - - - - 1,751,276 1,751,276
Effects of change in percentage of ownership in long-term equity investments - 131,185 - - - - - - 131,185
Cumulative translation adjustments - - - - - - 760,111 - 760,111
Cash dividends received by subsidiaries which company shares held by subsidiaries regarded
as treasury stock - 13,479 - - - - - - 13,479
Unrealized gains on available-for-sale financial assets - - - - - 4,340,971 - - 4,340,971
Unrealized loss on percentage of ownership in investment in financial instruments - - - - - (222,137) - - (222,137)
Balance as of December 31, 2007 34,752,682$ 7,267,826 10,649,548 29,215,289 (634,810) 5,184,331 955,074 7,353,210 94,743,150
2007 earnings distribution:
Legal reserve - - 1,844,653 (1,844,653) - - - - -
Remuneration to directors and supervisors - - - (40,000) - - - - (40,000)
Cash dividends - - - (12,163,439) - - - - (12,163,439)
Employee bonuses 700,000 - - (750,000) - - - - (50,000)
Stock dividends 1,042,580 - - (1,042,580) - - - - -
Remuneration to directors and supervisors distributed by subsidiaries - - - (9,872) - - - (20,954) (30,826)
Consolidated net income for the year ended December 31, 2008 - - - 20,229,322 - - - 896,059 21,125,381
Issuance of new shares for cash from minority stakeholders - - - - - - - 65,000 65,000
Cash dividends distributed by minority stakeholders - - - - - - - (731,281) (731,281)
Changes in minority interests - - - - - - - (1,002,992) (1,002,992)
Effects of change in percentage of ownership in long-term equity investments - (21,738) - - - - - - (21,738)
Cumulative translation adjustments - - - - - - 1,005,167 - 1,005,167
Cash dividends received by subsidiaries which company shares held by subsidiaries regarded
as treasury stock - 19,213 - - - - - - 19,213
Unrealized losses on available-for-sale financial assets - - - - - -8,764,114 - - (8,764,114)
Purchase of treasury stocks - - - - -1,338,865 - - - (1,338,865)
Company shares held by subsidiaries regarded as treasury stock - - - - -68,550 - - - (68,550)
Unrealized loss on percentage of ownership in investment in financial instruments - - - - - -111,715 - - (111,715)
Balance as of December 31, 2008 36,495,262$ 7,265,301 12,494,201 33,594,067 (2,042,225) (3,691,498) 1,960,241 6,559,042 92,634,391
(English Translation of Financial Report Originally Issued in Chinese)
Other adjustment itemRetained Earnings
The accompanying notes are an integral part of the consolidated financial statements.
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
(All Amounts Expressed of New Taiwan Dollars in Thousands, Except for Share Data)