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Quanta Computer Inc.
Annual Report 2012
Report to Shareholders
Year 2012 was a difficult year filled with many challenges and uncertainties, including fiscal
cliff in the U.S., the European debt crisis, and unstable political conditions in the Middle East. The
series of events around the globe brought difficult challenges to the global economy. Despite the
challenging global environment we faced in 2012, Quanta Computer continues to deliver solid results
to our shareholders through endeavors of our employees. Quanta’s performance for FY2012 and
outlook for FY2013 are as follow:
I. Revenue and Income
Net revenue for the parent company in year 2012 slightly declined from the prior year to
NT$965.4MN, while the consolidated revenue sustained at NT$1.02TN. In addition, the non-NB
business continues to expand into servers, datacenters, tablets, networking and other cloud-related
business. The improved product mix into non-NB business resulted in margin improvement and
stable profitability. Net income after tax reached NT$23BN, a slight decline of 0.06% from the year
prior. EPS in 2012 was NT$6.01, while non-operating income and expenses were NT$10.5BN and
NT$857MN respectively.
The center of Quanta Computer’s R&D development efforts focuses on acting as a “System
Solution Provider” in Cloud Computing business through integrating “Cloud Computing”,
“Connectivity Technology”, and “Client Device”.
In terms of operations & management, Quanta Computer leverages our strength in logistics and
e-procurement system to further optimize our expertise and superior technology in developing and
manufacturing notebook computers. In addition to optimizing our strength in the traditional notebook
business, the Company further devotes research efforts in developing new technology and new
products. Our continued efforts to focus on expanding into servers, datacenters, tablets, networking
and other cloud related business creates a balanced product mix to improve our overall profitability.
It is our optimal objective to increase revenue contribution from non-NB business year after year.
II. Outlook in 2013
One common area of focus from various presidential elections across the globe in 2012,
including America, Japan and Korea is the topic of economy recovery and job creation. Looking into
2013, we expect the global economy to gradually regain strength from the recovery of Europe debt
crisis and market recovery in Europe and U.S.
Year 2013 is an important year for Quanta Computer to leverage our success from the past and
to explore new opportunities in the future. We continue to explore advanced technology, capture new
opportunity, seek new innovations and discover breakthrough developments. Thus, improving the
Company’s product quality, technology, management skills and performance. Four key areas of
focus are shown as below:
Superior Quality -
Continue to improve product quality and to advance further on the fundamentals and the
basis to ensure customers and end users are truly satisfied with Quanta’s products and
ultimately enhance our competitiveness.
Superior Technology -
Define year 2013 as the first year of automation and identify ways to improve existing
thought-process in manufacturing. Integrate automation in manufacturing process in order
to accelerate overall competitiveness in cost structure, capacity, technology and quality.
Superior Management -
Improve management methodology, inspire employees to be motivated, stimulate
innovations, discover potentials, maximize value and enhance collaboration.
Superior Outcome -
Recognize the true value of “winning” through perfection in all areas and deliver fruitful
results from the Company’s achievement to customers, suppliers, partners, employees and
shareholders.
The aforementioned four principles should serve as the fundamentals to guide the Company’s
long-term development and to fully utilize its competitive edge in global logistic capability, speed
and flexibility of delivery, as well as economy of scale. The optimal goal is to sustain our
competitiveness in conjunction with leading edge research & development skills and innovative
design capability.
Leveraging the principle of 3Rs, including “Re-think”, “Re-educate”, and “Re-invent” to act as
a forerunner in technology innovation and continue the sail into the new 3C milestone. Adopt
changes and transform business models when necessary to explore new business and to lead as a
smart integrator, value creator, and service provider. Furthermore, identify new business
opportunities in the area of 3Ss, including “System”, “Software”, and “Solution.”
Quanta actively practice the core corporate value of VPA – Vision, Passion, and Action –
through devoting resources and improving quality of our labor force to enhance the Company’s
overall competitiveness. Creating corporate culture that enables dream makers to pursue their
dreams, enjoy their work and proactively take actions to achieve their goals. Devoting resources into
the new 3C era of cloud computing and moving towards the ideology of “achieving dreams in cloud
computing business and creating bright future for human being.” Quanta is celebrating its 25th
years
of anniversary this year and the Company is grateful for its employees’ hardworking attitude and its
sustainable leadership position in the industry thanks to the strong technical expertise the Company
has accumulated over the years. Through endeavors of our employees, Quanta expects its employees
to continue follow through the principle of “Humble attitude”, “Hungry for knowledge” and
“Hardworking spirt” to create the new Quanta spirit and to build the next glory decades.
Chairman: Barry Lam
President: C.C. Leung
Chief Financial Officer: Elton Yang
* Note: ownership is 100% unless otherwise specified
99.97%
24.81% 75.19% 0.44%
29.78% 37%
9%
%
9%
Quanta Computer Inc.
Quanta Int’l Ltd. (QIL)
99.99%
36.76%
Quanta Storage
Inc.
0.81%
Quanta Venture Capital
Co., Ltd.
Gem-Tech Precision Mold Co.,
Ltd.
FaceVsion
(HK)
Technology
Ltd
FaceVsion
Technology
USA LLC
Quanta
Cloud
Tech-
nology
Inc.
FaceVsion (Changshu)
Trading Co., Ltd.
QCJ
FaceVsion Technology,
Inc.
RoyalTek Company
Ltd.
QCTI Ltd.
Royaltek
Trading (Changshu)
Co., Ltd.
TWDT Precision Co., Ltd.
Quanta
Micro-
Systems
Inc.
Fly Dragon
International
Ltd.
Dragon City
Metallic
(ChangShu)
Co., Ltd.
DTG
(BVI) Ltd
CloudCast
Tech-
nology Inc.
QMJ
RoyalTek Int’l Enterprises
Ltd.
(Ref. to Chart 2)
(Ref. to Chart 1)
Quanta Computer Inc.
60%
19%
95%
Chart 1
Access
Int’l Co.
(AIC)
QCE
Computer BV
(QCE)
Quanta Capital
Management
Ltd. (QCML)
Quanta Asia
Ltd.
(QAL)
QCT
LLC
(QCTU)
QCT
Cayman
Inc.,
THINKTECH
IND. E COM. DE
INFORMATICA
S.A.
Quanta
Development
Ltd.
(QDL)
Standard (Shanghai)
Energy Co., Ltd.
Q_Bus
Int’l
Ltd.,
Tech
Chain
Ltd.
Exmore
Services
Holding
Limited,
Tech Chain
(Hong Kong)
LTD
50%
Exmore Services
Holding
(Hong Kong) LD
Gem-Tech
(Shanghai)
Precision
Mold Co.,
Ltd.
Zhan Yun
(Changshu)
Electronics
Co., Ltd.
Zhan Yun
(Shanghai)
Electronics Co., Ltd.
Zhan Yun
(Chongqing)
Electronics
Co., Ltd.
Quanta Int’l
Technology
Ltd.
(QIT)
QCG
Computer
GMBH
Quanta
Research
Cambridge
Inc.
(QRC)
QCT
Korea
Inc.
Tech-
Wave
(Shang-
hai)
Warehous-
ing Co.,
Ltd.
(TWW)
Tech-
Wave
(Chong-
qing)
Warehous
-ing Co.,
Ltd.
(TWW)
Tech-
Full
(Chang-
shu)
Computer
Co., Ltd.
(TNC)
Quanta Int’l Ltd.
(QIL)
Kenseisha
Shanghai
P.M.P.
Co., Ltd.
(KSH)
Cloudex
(Shang
-hai)
Tech-
nology
Co., Ltd.
QCH
Inc.
(QCH)
Quanta
Manufac-
turing Inc.
(QMI)
Quanta
Service
Inc.
(QSI)
Quanta
Computer
USA, Inc
(QCA)
Quanta
Development
(Hong Kong) LTD
Tech-
Front
(Shang-
hai)
Computer
Co., Ltd.
(TFC)
Tech-
Com
(Shang-hai)
Computer
Co., Ltd. (TCC)
Tech-
Trend
(Shang-
hai)
Computer
Co., Ltd.
(TTC)
Tech-
Lead
(Shang-
hai)
Computer
Co., Ltd.
(TLC)
Tech-
Giant
(Shang-
hai)
Computer
Co., Ltd.
(TGC)
QMN
LLC
QCHN,
LLC.,
QSN,
LLC.,
QCN,
LLC
Tech-
Front
(Chong-
qing)
Computer
Co., Ltd.
(TFQ)
Cloudex
(Bei-
jing)
Tech-
nology
Co., Ltd.
* Note: ownership is 100% unless otherwise specified
Quanta
Research
Int’l Inc. (QRII)
* Note: ownership is 100% unless otherwise specified
Quanta Storage Inc.
Quanta Storage
International Lt.
(CAYMAN)
Quanta Storage
(BVI)Ltd.
Quanta Storage (Shanghai) Ltd.
Quanta Storage
Holding Ltd.
E-Forward
Technology Ltd.
Quanta Storage
Asia Ltd.
Quanta Storage
America, Inc.
Quanta Storage
Investment Ltd.
Techman Electronics
(Changshu) Co., Ltd.
Quanta Storage
Holding (HK)
Ltd.
Quanta Storage Investments (HK) Ltd.
Quanta Storage (Changshu)
Ltd.
Chart 2
(English Translation of Financial Report Originally Issued In Chinese)
Independent Auditors’ Report
To 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, 2012 and 2011, 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 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, 2012
and 2011, 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
KPMG
CPA: Lin, Wan Wan
Chiang, Chung Yi
March 29, 2013
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 and financial statements, the Chinese version shall prevail.
Amount % Amount %
ASSETS
Current Asset:
Cash and cash equivalents(Notes(2) and (4)(a)) $ 188,109,780 33 263,884,423 40
Financial assets reported at fair value through profit or loss - current (Notes(2) and (4)(b)) 380,015 - 355,316 -
Available-for-sale financial assets - current (Notes(2) and (4)(b)) 10,838,563 2 19,807,504 3
Held-to-maturity financial assets - current (Notes(2) and (4)(b)) 867,132 - 734,138 -
Notes receivable, net 1,451 - 20,964 -
Accounts receivable, net (Notes(2) and (4)(c))
- Related parties (Note(5)) 292,626 - 214,678 -
- Other customers 193,327,510 34 187,391,933 28
Other receivables, net
- Related parties (Note(5)) 706 - 802 -
- Non-related parties 2,009,436 - 2,069,338 -
Other financial asset - current 6,434,102 1 13,404,752 2
Inventories (Notes(2) and (4)(d)) 96,168,039 17 113,906,740 17
Prepayments (Note(5)) 2,642,106 1 1,165,239 -
Deferred income tax assets - current (Notes(2) and (4)(j)) 3,909,295 1 2,413,474 -
Other current assets (Note(5)) 1,006,793 - 826,112 -
505,987,554 89 606,195,413 90
Investments:
Financial assets reported at fair value through profit or loss - noncurrent
(Notes (2) and (4)(b)) 86,401 - - -
Available-for-sale financial assets - noncurrent (Notes(2) and (4)(b)) 127,548 - 204,011 -
Financial assets carried at cost - noncurrent (Notes(2) and (4)(b)) 7,251,614 2 7,385,277 1
Long-term investments at equity (Notes(2) and (4)(e)) 427,907 - 683,703 -
Other financial assets - noncurrent (Note(6)) 459,845 - 297,081 -
8,353,315 2 8,570,072 1
Property, Plant and Equipment at Cost (Note(2)) :
Land 2,999,883 1 2,999,883 1
Buildings 27,675,130 5 28,250,508 4
Machinery and equipment 40,209,110 7 39,550,107 6
Molds and tools 665,072 - 583,793 -
Transportation equipment 177,865 - 163,789 -
Furniture and office facilities 1,858,949 - 1,726,343 -
Leasehold improvements 1,175,337 - 1,638,937 -
Miscellaneous equipment 4,078,188 1 3,602,445 1
78,839,534 14 78,515,805 12
Less: Accumulated depreciation (28,493,657) (5) (25,487,715) (3)
Construction in progress 14,692 - 169,466 -
Prepayments for equipment 214,926 - 125,157 -
50,575,495 9 53,322,713 9
Intangible Assets (Note(2)) 1,665,237 - 1,724,178 -
Other Assets
Rental assets (Notes(2) and (4)(f)) 254,700 - 183,839 -
Idle assets (Notes(2)) - - 74,177 -
Deferred income tax assets -noncurrent (Notes(2) and (4)(j)) - - 88,418 -
Other assets (Note(2)) 788,792 - 749,912 -
1,043,492 - 1,096,346 -
TOTAL ASSETS $ 567,625,093 100 670,908,722 100
The accompanying notes are an integral part of the financial statements.
December 31, 2012 December 31, 2011
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2012 AND 2011
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
Amount % Amount %
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term debt (Note(4)(g)) $ 170,107,016 30 268,713,067 40
Financial liabilities reported at fair value through profit or loss - current (Notes(2) and (4)(b)) 28,165 - - -
Notes payable 16,380 - 21,515 -
Accounts payable
- Related parties (Note(5)) 354,924 - 329,384 -
- Vendors 191,555,109 34 197,546,768 29
Income tax payable (Notes(2) and (4)(j)) 6,682,477 1 8,726,279 1
Accrued expenses (Note(5)) 11,675,868 2 12,332,556 2
Other payables (Note(5)) 5,024,608 1 3,671,891 1
Other financial liabilities - current (Note(5)) 5,951,853 1 6,076,501 1
Current portion of long-term debt (Notes(2) and (4)(h)) 12,205,453 2 - -
Warranty reserve 8,220,151 2 11,238,049 2
Other current liabilities (Note(5)) 4,530,316 1 5,481,598 1
416,352,320 74 514,137,608 77
Long-Term Liabilities:
Long-term debt (Note(4)(h)) 18,631,519 3 32,679,957 5
Other financial liabilities - noncurrent 59,593 - 56,142 -
18,691,112 3 32,736,099 5
Other Liabilities:
Accrued pension cost (Notes(2) and (4)(e)) 78 - 1,603 -
Deferred income tax liabilities -noncurrent (Notes(2) and (4)(j)) 1,230,801 - - -
Other liabilities (Note(2)) 124,325 - 271,658 -
1,355,204 - 273,261 -
Total Liabilities 436,398,636 77 547,146,968 82
Stockholders' Equity::
Common stock - authorized 4,200,000 thousand shares, 3,848,747 thousand shares issued and
outstanding in 2012; 3,841,059 thousand shares issued and outstanding in 2011 (Note(4)(k))
Advance receipts for common stock 4,288 - 6,243 -
Capital Surplus (Note(2)) :
Premium on stock issuance 13,530,689 2 13,356,022 2
Treasury stock 195,871 - 183,953 -
Donated surplus 44 - 44 -
Long-term investments at equity 520,161 - 520,167 -
14,246,765 2 14,060,186 2
Retained Earnings:
Legal reserve (Note(4)(l)) 20,911,902 4 18,606,648 3
Special reserve (Note (4)(m)) 4,027,178 1 - -
Retained earnings - unappropriated (Note(4)(o)) 50,945,110 9 49,620,745 7
75,884,190 14 68,227,393 10
Other Adjustments to Stockholders' Equity:
Cumulative translation adjustments (Note(2)) 1,995,066 - 2,552,491 -
Net loss not recognized as pension cost (Note(2)) - - (76) -
Unrealized (loss)gain on financial instruments (Note((2)) (6,465,322) (1) (6,579,593) (1)
Treasury Stock (Notes(2) and (4)(p)) (333,094) - (333,094) -
(4,803,350) (1) (4,360,272) (1)
Total Parent Company's Equity 123,819,367 22 116,344,144 17
Minority interest 7,407,090 1 7,417,610 1
TOTAL Stockholders' Equity 131,226,457 23 123,761,754 18
Commitments and Contingencies Liabilities (Note (7))
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 567,625,093 100 670,908,722 100
7 38,410,594 6
December 31, 2012 December 31, 2011
The accompanying notes are an integral part of the financial statements.
38,487,474
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONT'D)
DECEMBER 31, 2012 AND 2011
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
Amount % Amount %
Operating Revenues
Sales Revenue $ 1,024,265,268 101 1,119,323,317 101
Less: Sales returns (4,036,996) (1) (5,583,319) (1)
Sales allowances (2,683,735) - (4,012,137) -
Net sales 1,017,544,537 100 1,109,727,861 100
Cost of Goods Sold (Note (4)(d)) (978,338,311) (96) (1,067,204,135) (96)
Gross Margin 39,206,226 4 42,523,726 4
Unrealized gross profit- end of the period (490) - (1,215) -
Realized gains profit-beginning of the period 1,215 - 302 -
39,206,951 4 42,522,813 4
Operating Expenses
Selling expenses (6,603,639) - (10,380,695) (1)
General and administrative expenses (7,563,521) (1) (7,086,025) (1)
Research and development expenses (9,866,996) (1) (9,171,294) (1)
(24,034,156) (2) (26,638,014) (3)
Income from Operations 15,172,795 2 15,884,799 1
Non-Operating Income
Interest income 14,920,843 1 7,336,340 1
Investment income recognized under equity method (Notes(2) and (4)(e)) - - 26,348 -
Dividend income 429,084 - 690,403 -
Gain on disposal of investments 312,079 - 2,023,279 -
Foreign exchange gains, net (Note(2)) 1,758,702 - 8,886,909 1
Gain on valuation of financial assets (Notes(2) and (4)(b)) 56,116 - 62,299 -
Miscellaneous income 7,359,879 1 4,151,970 -
24,836,703 2 23,177,548 2
Non-Operating Expenses
Interest expense (9,843,592) (1) (5,422,722) -
Investment loss recognized under equity method (Notes(2) and (4)(e)) (142,360) - - -
Impairment loss (Notes(2) and (4)(b)) (61,873) - (344,463) -
Loss on valuation of financial liabilities (Notes(2) and (4)(b)) (2,687) - (30,787) -
Miscellaneous disbursements (929,671) - (722,924) -
(10,980,183) (1) (6,520,896) -
Income before Income Tax 29,029,315 3 32,541,451 3
Income tax expense (Notes(2) and (4)(j)) (5,612,679) (1) (9,042,722) (1)
Consolidated Net Income $ 23,416,636 2 23,498,729 2
Income Attributable to :
Shareholders of parent company $ 23,039,047 2 23,052,536 2
Minority interest income 377,589 - 446,193 -
$ 23,416,636 2 23,498,729 2
Before Tax After Tax Before Tax After Tax
Earnings per share attributable to parent company (Notes(2) and (4)(r))
Primary earnings per share $ 7.14 6.01 7.16 6.02
Diluted earnings per share $ 7.04 5.92 7.06 5.93
Assuming that company shares held by its subsidiaries are not
regarded as treasury stock:
Pro-forma primary earnings per share $ 7.12 5.99 7.15 6.01
Pro-forma diluted earnings per share $ 7.03 5.91 7.05 5.92
The accompanying notes are an integral part of the financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2011
For The Years Ended December 31,
2012
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 2011
Amount Amount
Cash flows from operating activities:
Consolidated net income 23,416,636$ 23,498,729
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities:
Depreciation 6,334,232 5,873,618
Amortization 745,589 613,389
(Reversal) Provision for doubtful accounts (86,870) 96,715
(Reversal) Provision for sales return and allowances (1,666,208) 2,100,951
Reversal for warranty reserve (2,974,669) (308,936)
Amortization of premium on financial assets 11 16
Provision for inventory market price decline and obsolescene 2,214,352 674,556
Investments loss (income) recognized under equtiy method 142,360 (26,348)
Cash dividends received from long-term investment at equity 26,735 89,351
Loss on disposal and retirement of property, plant and equipment 320,075 113,071
Expense reclassified from property, plant and equipment 3,300 4,127
Gain on disposal of intangible assets - (14)
Gain on disposal and retirement of idle assets - (19,570)
Gain on disposal of investements (298,736) (2,019,259)
Gain on disposal of long-term investment at equity (13,343) (4,019)
Unrealized valueation gain of financial assets and liabilities (2,997) (3,432)
Loss on impairment of financial assets 61,873 344,463
Reversal for impairment loss of non-financial assets (16,166) (79)
Unrealized gain of foreign-exchange - (3,240)
Effects of exchange rate change on long-term debt (831,450) 686,263
Others (177,031) (58,202)
Change in operating assets and liabilities:
Decrease in financial assets held for trading 5,896 148,704
Decrease (increase) in notes receivable 19,514 (12,640)
(Increase) decrease in accounts receivable (8,482,939) 2,306,963
Decrease (increase) in other receivables 30,783 (298,584)
Decrease (increase) in inventories 12,936,483 (28,992,820)
(Increase) decrease in prepayments (1,521,002) 427,208
Increase in other current assets (156,139) (167,161)
Decrease (increase) in other financial assets 5,872,436 (1,173,165)
Decrease (increase) in deferred income tax assets 345,482 (66,224)
Decrease in financial liabilities held for trading - (16,445)
(Decrease) increase in notes payable (5,014) 1,436
Increase (decrease) in accounts payable 1,942,856 (9,530,534)
(Decrease) increase in income tax payable (1,871,860) 4,199,714
(Decrease) increase in accrued expense (495,363) 762,688
Increase (decrease) in other payable 1,466,716 (395,862)
(Decrease) increase in other financial liabilities (222,624) 2,474,631
(Decrease) increase in other current liabilities (839,378) 1,027,138
Decrease in other operating liabilities (128,833) (120,625)
Net cash provided by operating activities 36,094,707 2,226,572
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
For The Years Ended December 31,
The accompanying notes are an integral part of the consolidated financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 2011
Amount Amount
Cash flows from investing activities:
Acquisitions of available-for-sale financial assets (70,681,399) (116,169,492)
Proceeds from disposal of available-for-sale financial assets 80,133,428 129,535,974
Acquisitions of held-to-maturity financial assets (248,578) (545,919)
Proceeds from disposal of held-to-muturity financial assets 89,790 -
Acquisitions of financial assets carried at cost (228,934) (1,206,872)
Proceeds from disposal of financial assets carried at cost 41,398 147,175
Proceeds from return of capital by financial assets carried at cost 276,378 542,955
Proceeds from disposal of long-term investments at equity - 34,908
Acquision of subsidiray - (440,559)
Proceeds from return of capital by long-term investment at equity 5,809 40,324
Purchase of property, plant and equipment (5,763,101) (7,165,545)
Proceeds from disposal of property, plant and equipment 174,969 486,632
Purchase of rental assets (90) (188)
Purchase of intangible assets (160,862) (129,947)
Proceeds from disposal of intangible assets - 29,707
Decrease (increase) in other financial assets 447,193 (2,974,237)
Increase in other assets (645,447) (540,379)
Net cash provided by investing activities 3,440,554 1,644,537
Cash flows from financing activities:
(Decrease) increase in short-term debts (92,300,099) 123,418,211
Increase in long-term debts - 1,720,800
Repayment of long-term debts (544,781) (63,486)
Increase (decrease) in other financial liabilities 5,115 (10,356)
Distribution of cash dividends (15,520,026) (14,139,543)
Issuance of capital by cash - 204,260
Capital return - (138,734)
Conversion of employee stock options 249,592 234,316
Cost of treasury stocks bought back - (138,960)
Net cash (used in) provided by financing activities (108,110,199) 111,086,508
Foreign exchange rate effects (7,199,705) 11,883,627
Net increase in cash and cash equivalents (75,774,643) 126,841,244
Cash and cash equivalents, beginning of the period 263,884,423 137,043,179
Cash and cash equivalents, end of the period 188,109,780$ 263,884,423
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest 8,470,647$ 4,922,691
Income tax 6,325,191$ 4,719,627
Non-cash investing and financing activities:
Current portion of long-term debt 12,205,453$ -
Cash dividends payable 1,131,144$ 735,744
Financial assets carried at cost transferred to available-for-sale financial assets -$ 218,743
Purchase of property and equipment with cash and other payables:
Property, plant and equipment 5,677,358$ 6,865,261
Decrease (increase) in payables on equipment 85,743 300,284
Cash paid 5,763,101$ 7,165,545
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
For The Years Ended December 31,
The accompanying notes are an integral part of the consolidated financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2012 2011
Amount Amount
Acquisition of assets and liabilities of fair value of subsidiaries
Cash -$ 84,011
Notes receivable and accounts receivable - 345,362
Other receivables - 8,811
Other financial assets - current - 101,799
Inventories - 68,510
Prepayments - 3,621
Other current assets - 2,378
Property, plant and equipment - 1,272,888
Intangible assets - 29,848
Other assets - 1,901
Goodwill - 214,669
Short-term debts - (1,336,228)
Notes payable and accounts payable - (202,981)
Accrued expenses - (24,350)
Other payables - (45,228)
Other current liabilities - (441)
Purchase price on acquisition of subsidiaires - 524,570
Cash balance of subsidiaries at the acquisition date - (84,011)
Cash paid on acquisition of subsidiaries -$ 440,559
The accompanying notes are an integral part of the financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
For The Years Ended December 31,
Common Advance Receipts Capital Legal Special
Unappropriated
Retained
Cumulative
Translation
Net Loss
not Recognized
Unrealized Gain or
Loss on Financial Minority Total
Stock for Common Stock Surplus Reserve Reserve Earnings Adjustments as Pension Cost Instruments Treasury Stock Interest
Balance as of January 1, 2011 $ 38,338,734 21,388 13,827,260 16,747,441 - 42,249,265 731,137 - 163,394 (475,840) 7,521,061 119,123,840
Conversion of empleyee stock options 71,860 (15,145) 177,601 - - - - - - - - 234,316
Disposal of company shares held by subsidiaries regarded as treasury stock transactions - - 31,902 - - - - - - 142,746 - 174,648
Dividends distributed to subsidiaries as an adjustment of capital surplus 10,729 - - - - - - - - 10,729
Consolidated net income for the year ended December 31, 2011 - - - - - 23,052,536 - - - - 446,193 23,498,729
2010 earnings distribution: (Note 1)
Legal reserve - - - 1,859,207 - (1,859,207) - - - - - -
Cash dividends - - - - - (13,821,849) - - - - - (13,821,849)
Effects of change in percentage of ownership in long-term equity investments - - 276 - - - - - - - - 276
Unrealized (loss)gain on available-for-sale financial assets - - - - - - - - (6,405,505) - - (6,405,505)
Changes in minority interests - - - - - - - - - - (549,644) (549,644)
Changes in equities of investee company under the equity method recognized according to ownership - - 12,418 - - - 1,821,354 (76) (337,482) - - 1,496,214
Balance as of December 31, 2011 38,410,594 6,243 14,060,186 18,606,648 - 49,620,745 2,552,491 (76) (6,579,593) (333,094) 7,417,610 123,761,754
Conversion of empleyee stock options 76,880 (1,955) 174,667 - - - - - - - - 249,592
Dividends distributed to subsidiaries as an adjustment of capital surplus - - 11,918 - - - - - - - - 11,918
Consolidated net income for the year ended December 31, 2012 - - - - - 23,039,047 - - - - 377,589 23,416,636
2011 earnings distribution: (Note 2)
Legal reserve - - - 2,305,254 - (2,305,254) - - - - - -
Special reserve - - - - 4,027,178 (4,027,178) - - - - - -
Cash dividends - - - - - (15,382,250) - - - - - (15,382,250)
Unrealized (loss)gain on available-for-sale financial assets - - - - - - - - 4,822 - - 4,822
Changes in minority interests - - - - - - - - - - (388,109) (388,109)
Changes in equities of investee company under the equity method recognized according to ownership - - (6) - - - (557,425) 76 109,449 - - (447,906)
Balance as of December 31, 2012 38,487,474$ 4,288 14,246,765 20,911,902 4,027,178 50,945,110 1,995,066 - (6,465,322) (333,094) 7,407,090 131,226,457
Note 1: Bonuses to employees amounted to 1,655,000 and emoluments to directors amounted to 42,000 had been charged against earnings.
Note 2: Bonuses to employees amounted to 2,070,000 and emoluments to directors amounted to 42,000 had been charged against earnings.
Retained Earnings Other Adjustment Item
The accompanying notes are an integral part of the consolidated financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
(All Amounts Expressed of New Taiwan Dollars in Thousands, Except for Share Data)
Capital Stock