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Quanta Computer Inc.
Annual Report 2009
Report to Shareholders
Shipment of worldwide notebook PCs for year 2009 exceeded market expectation as
penetration rate of notebook PCs accelerated due to gradual recovery of global financial crisis and
the decreasing ASP. Quanta Computer is able to leverage efforts in vertical integration and
cost-control to deliver an impressive 10.35% growth in net income after tax.
Looking ahead, we anticipate the overall economy to gradually recover in 2010 and increasing
market demand to stimulate the overall PC market to gain market power. Quanta’s performance for
FY2009 and outlook for FY2010 are as follow:
I. Revenue and Income
Net revenue was approximately NT$750BN in year 2009, a slight decrease of NT$13.1BN from
NT$763.1BN in 2008 or a decrease of 1.71% YoY.
Gross margin in 2009 was 4.13%. After-tax net income was NT$22.3BN, an increase of
NT$2.1BN from NT$20.2BN in 2008 or an increase of 10.35% in annual growth. EPS in 2009 was
NT$6.09. Despite a slight decrease in net revenue, Quanta Computer is able to utilize cost-control
efforts to deliver an impressive growth of 10.35% in net income after tax.
Non-operating income and expenses were NT$10.7BN and NT$1BN, respectively.
II. Research and Development (R&D)
Focus of Quanta’s Research and Development in 2010 will be centered around the concept of
“New 3C” to lead the Company to achieve the goal of delivering cloud computing services through
3Bs – Balanced, Beneficial, and Brilliant. Specifically, Quanta wants to leverage cloud computing
services to reach balanced sharing that is mutually beneficial and delivers a brilliant outcome.
Moreover, Quanta is interested in taking the role of a corporate citizen in the society by leveraging
technology to advance the next civilization in human race.
One element of the “New 3C” concept is the research and development effots devoted into
“Cloud Computing”, which will enable Quanta to provide massive computing and data stortage
capability needed in “Public Cloud”, “Corporate Cloud”, and “Private Cloud”. Next, our efforts in
“Connectivity Technology” will accelerate the development of next generation data network and to
enhance the connectivity with telecom carriers, broadcast stations, and TV networks. All together,
“Connectivity Technoogy” will provide uninterrupted cloud connectivity as well as broader service
coverage.
Lastly, “Client Device” will enable Quanta to bring more innovative ideas to platforms and
product designs. Cloud computing on Client Device provides a diversified and cost-effective solution
tailored to different user environment and demand.
III. Operations and Management
Facing the ever-changing competitive landscape in notebook PCs ODM industry, Quanta will
continue to rely on research and development to spark innovation. Furthermore, Quanta will focus
more attention on cost-control in order to effectively manage labor, material, and transportation costs.
Quanta offers products with high C/P value to our customers with focuses on the following area:
Focus on innovative approach in research and development efforts to fully utilize our
competitive advantage in order to deliver solutions that are high quality, yet meet our
cost-control objective.
Improve overall work quality and speed by doing it right the first time. Reduce errors
and follow high quality standard to ensure the entire supply chain is well managed.
Increase efficiency and control spending through standardization, accelerated learning
curves, and shortened development cycles. Develop alternative strategies in response
to supply shortage of energy, labor, and material.
Establishment of QES, Quanta Elite School, to cultivate talents both in professional
knowledge and personality development.
IV. Outlook in 2010
In regards to our core business in notebook PCs, we target more than 50 million units of
shipment in 2010. In addition to our continued efforts in diversifying into non-NB products, we will
continue to focus on the four core values of Quanta – Quality, Speed, Margin, and Confidence. Our
research and development efforts are centered around “people” and we devote our resources into
developing advanced technology such as integrated server, wireless network, and end-user products
to deliver cloud computing services that deliver “3A Coverage” – Anytime, Anywhere, and Anyone.
With strong believe and focuses on improving human lives, we not only devote ourselves into
developing innovative products, software, and services. We also continue to focus on developing
innovative bussiness model with hopes to transform ourselves to a full-coverage and full-service
provider. We anticipate year 2010 to be the begining of New 3C era for Quanta and we hope to
leverage our development efforts in cloud computing businesses to set an industry standard.
Chairman: Barry Lam
President: C.C. Leung
Chief Financial Officer: Tim Li
9% 9%
37%
36.85% 99.90%
30.11%
Quanta Computer Inc.
Quanta Int’l Ltd. (QIL)
QCJ
99.99% 29.07%
Quanta Storage
Inc.
DataOn Systems
Inc.
0.81%
QCTI
Ltd.
RoyalTek Company
Ltd.
Quanta Venture Capital
Co.
DGT (BVI) Ltd.
faceVision Technology,
Inc.
Gem-Tech Precision Mold Co.,
Ltd
(Ref. to Chart 1)
Puzzle Logic USA,
Inc.
Puzzle Logic Asia,
Ltd.
(Ref. to Chart 2) Puzzle
Logic Inc.
67.00%
Quanta Microsystems
Inc.
Quanta
Network
Capital
Co.
TWDT Precision Co., Ltd.
60%
95%
Quanta Computer Inc.
QMN LLC
QCHN, LLC.,
QCG Computer
GMBH
Tech-Front (Shanghai) Computer Co., Ltd.
(TFC)
Quanta Int’l Ltd. (QIL)
QCE Computer BV
(QCE)
Quanta Asia Ltd.
(QAL)
Quanta Capital Management Ltd. (QCML)
QCH Inc.
(QCH)
Q_Bus Int’l Ltd.
Quanta Manufac- turing Inc.
(QMI)
Tech-Com (Shanghai) Computer Co., Ltd.
(TCC)
Tech-Trend (Shanghai) Computer Co., Ltd.
(TTC)
Tech-Lead (Shanghai) Computer Co., Ltd.
(TLC)
Tech-Giant (Shanghai) Computer Co., Ltd.
(TGC)
Tech-Wave (Shanghai)
Warehousing Co., Ltd.
Tech Wave
Exmore Services
Holding Ltd.
Gem-Tech (Shanghai) Precision Co., Ltd
Zhan Yun (Changshu) Electronics
Co., Ltd.
Zhan Yun (Shanghai) Electronics
Co., Ld.
Quanta Int’l Technology
Ltd. (QIT)
Exmore Services Holding
(Hong Kong) Limited
Quanta Develop- ment Ltd.
(QDL)
Tech Chain Ltd.
Tech Chain (Hong Kong)
Limited
QSN, LLC.,
QCN, LLC
Access Int’l Co.
(AIC)
THINKTECH IND. E COM. DE INFORMATICA SA
Kenseisha Shanghai
P.M.P. Co., Ltd.
Tech-Full (Changshu) Computer Co., Ltd. Tech Full
Quanta Computer USA, Inc
(QCA)
Quanta Development (Hong Kong)
Limited
Quanta Service
Inc.
(QSI)
Chart 1
Quanta Computer Inc.
Quanta Storage Inc.
Quanta Storage (BVI)Ltd.
Quanta Storage International Ltd.(CAYMAN)
Quanta Storage Investment Inc.
E-Forward Technology Ltd.
Quanta Storage Holding Ltd.
Quanta Storage Holding (Hong
Kong) Ltd.
Quanta Storage Investments (Hong
Kong) Ltd.
Quanta Storage Asia Ltd.
Quanta Storage America, Inc.
Quanta Storage (Shanghai) Ltd.
Quanta Storage (Changshu) Ltd.
Techman Electronics (changshu) Co. 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 balance sheets of Quanta Computer Inc. as of December 31,
2009 and 2008, and the related statements of income, changes in stockholders’ equity, and cash flows
for the years then ended. These 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 financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
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 financial statements referred to above present fairly, in all material respects,
the financial position of Quanta Computer Inc. as of December 31, 2009 and 2008, and the results of
its operations and its cash flows for the years then ended in conformity with the related financial
accounting standards of the “Business Entity Accounting Act” and of the “Regulation on Business
Entity Accounting Handling”, and accounting principles generally accepted in the Republic of China
and the Guidelines Governing the Preparation of Financial Reports by Securities Issuers.
As described in Note 3, to the financial statements effective January 1, 2008, the 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 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$1,426,125
thousand and NT $0.39, respectively, for the years ended December 31, 2008.
Quanta Computer Inc. has prepared consolidated financial statements as of and for the years
ended December 31, 2009 and 2008, on which we have expressed an standard unqualified opinion
and modified unqualified opinion, respectively.
KPMG
CPA: Charlotte Lin
Leoufong Yang
April 12, 2010
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 Asset:
Cash and cash equivalents $ 64,797,239 17 59,221,542 20
Financial assets reported at fair value through profit or loss - current 773,262 - 645,641 -
Available-for-sale financial assets - current 34,105,847 9 27,247,241 9
Held-to-maturity financial assets - current 2,097,782 1 89,134 -
Financial assets carried at cost - current 2,840 - - -
Notes receivable, net 6,903 - 8,775 -
Accounts receivable, net of allowance for doubtful accounts and sales
allowances
- Related parties 1,058,420 - 192,163 -
- Other customers 152,142,840 41 102,302,760 34
Other receivables, net of allowance for doubtful accounts
- Related parties 1,167 - 578,147 -
- Other customers 1,352,436 - 480,974 -
Other financial asset - current 4,572,029 1 151,301 -
Inventories 53,946,490 15 50,317,159 17
Prepayments 836,752 - 910,942 -
Other current assets 803,603 - 1,749,244 1
Deferred income tax assets - current 2,880,429 1 2,749,275 1
319,378,039 85 246,644,298 82
Investments:
Financial assets reported at fair value through profit or loss - noncurrent 110,279 - 430,772 -
Available-for-sale financial assets - noncurrent 279,556 1 202,910 -
Held-to-maturity financial assets - noncurrent 146,602 - 50,065 -
Financial assets carried at cost - noncurrent 9,166,954 2 9,278,638 3
Long-term investments at equity 752,206 - 566,486 -
Other financial assets - noncurrent 385,128 - 262,708 -
10,840,725 3 10,791,579 3
Property, Plant and Equipment, at Cost:
Land 2,070,431 1 2,070,431 1
Buildings 16,664,533 4 16,666,323 6
Machinery and equipment 28,422,767 8 26,615,685 9
Molds and tools 321,082 - 192,158 -
Transportation equipment 122,885 - 125,005 -
Furniture and office facilities 1,339,474 - 1,332,984 -
Leasehold improvements 886,582 - 680,426 -
Miscellaneous equipment 2,077,878 1 1,945,352 1
51,905,632 14 49,628,364 17
Less: Accumulated depreciation (14,949,711) (4) (11,490,844) (4)
Less: Accumulated impairment (176,196) - (213,075) -
Construction in progress 347,143 - 918,187 -
Prepayments for equipment 1,320,768 - 189,189 -
38,447,636 10 39,031,821 13
Intangible Assets 1,649,627 - 1,358,490 -
Other Assets
Idled assets 75,468 - 62,559 -
Rental assets 6,626,111 2 5,326,987 2
Other assets 386,050 - 379,209 -
7,087,629 2 5,768,755 2
TOTAL ASSETS $ 377,403,656 100 303,594,943 100
The accompanying notes are an integral part of the financial statements.
December 31, 2009 December 31, 2008
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2009 AND 2008
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
Amount % Amount %
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term debt $ 63,137,910 17 34,033,513 11
Financial liabilities reported at fair value through profit or loss - current - - 18,596 -
Notes payable 11,906 - 130,706 -
Accounts payable
- Related parties 231,471 - 2,092,652 1
- Vendors 162,255,902 43 117,563,259 39
Income tax payable 2,279,215 1 4,139,506 1
Accrued expenses 10,508,889 3 9,753,897 3
Other payables 4,099,085 1 3,075,519 1
Other financial liabilities - current 3,290,337 1 2,498,143 1
Convertible corporate bonds - current portion 1,665,332 - - -
Current portion of long-term debt - - 3,114,431 1
Warranty reserve 12,762,690 3 11,671,463 4
Other current liabilities 2,355,808 1 2,134,332 1
262,598,545 70 190,226,017 63
Long-Term Liabilities:
Convertible corporate bonds - noncurrent - - 6,394,263 2
Long-term debt - - 13,453,009 5
Other financial liabilities - noncurrent 51,955 - 60,171 -
51,955 - 19,907,443 7
Other Liabilities:
Deferred income tax liabilities - noncurrent 197,672 - 825,664 -
Other liabilities 546,615 - 1,428 -
744,287 - 827,092 -
Total Liabilities 263,394,787 70 210,960,552 70
Stockholders' Equity::
Common stock - authorized 4,200,000 thousand shares, 3,781,976 thousand
shares issued and outstanding in 2009; 3,649,526 thousand
shares issued and outstanding in 2008 37,819,761 10 36,495,262 12
Certificates of bond-to-stock conversion 148,936 - - -
Advance receipts for common stock 47,283 - - -
Capital Surplus
Premium on stock issuance 11,452,664 3 6,702,065 2
Treasury stock 125,635 - 32,692 -
Donated surplus 44 - 44 -
Long-term investments at equity 565,647 - 530,500 -
12,143,990 3 7,265,301 2
Retained Earnings:
Legal reserve 14,516,146 4 12,494,201 4
Special reserve 1,731,257 - - -
Retained earnings - unappropriated 38,275,607 10 33,594,067 11
54,523,010 14 46,088,268 15
Other Adjustments to Stockholders' Equity:
Cumulative translation adjustments 1,722,026 1 1,960,241 1
Unrealized gain on financial instruments 689,997 - (3,691,498) (1)
Treasury Stock (475,840) - (2,042,225) (1)
1,936,183 1 (3,773,482) (1)
Total Parent Company's Equity 106,619,163 28 86,075,349 28
Minority interest 7,389,706 2 6,559,042 2
TOTAL Stockholders' Equity 114,008,869 30 92,634,391 30
Commitments and Contingent Liabilities
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 377,403,656 100 303,594,943 100
December 31, 2009 December 31, 2008
The accompanying notes are an integral part of the financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONT'D)
DECEMBER 31, 2009 AND 2008
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
Amount % Amount %
Operating Revenues
Sales Revenue $ 850,312,156 101 833,022,874 102
Less: Sales returns (7,515,291) (1) (12,017,674) (2)
Sales allowances (3,005,642) - (2,267,285) -
Net sales 839,791,223 100 818,737,915 100
Operating Cost
Cost of goods sold (794,088,062) (95) (776,707,947) (95)
Gross margin 45,703,161 5 42,029,968 5
Realized gains profit-beginning of the period 73 - 112 -
Unrealized gross profit- end of the period (321) - (73) -
45,702,913 5 42,030,007 5
Operating expenses
Selling expenses (9,219,551) (1) (10,677,628) (1)
General and administrative expenses (5,880,291) (1) (5,572,343) (1)
Research and development expenses (8,579,194) (1) (7,313,565) (1)
(23,679,036) (3) (23,563,536) (3)
Income from operations 22,023,877 2 18,466,471 2
Non-operating income
Interest income 575,283 - 1,636,919 -
Investment income recognized under equity method 13,061 - - -
Dividend income 272,501 - 1,392,154 -
Gain on disposal of investments 895,958 - 675,270 -
Foreign exchange gains, net 2,227,840 - 5,777,793 1
Gain on valuation of financial assets 284,208 - 129,368 -
Gain on valuation of financial liabilities 27,175 - 142,106 -
Other income 4,351,296 1 3,820,187 -
8,647,322 1 13,573,797 1
Non-operating expenses
Interest expense (1,020,507) - (2,204,590) -
Investment loss recognized under equity method - - (328,786) -
Other investment loss (379,467) - (802,918) -
Miscellaneous disbursements (856,000) - (1,093,737) -
(2,255,974) - (4,430,031) -
Income before income tax 28,415,225 3 27,610,237 3
Income tax expense (5,074,165) (1) (6,484,856) (1)
Consolidated net income $ 23,341,060 2 21,125,381 2
Income attributable to :
Shareholders of parent company $ 22,312,952 2 20,229,322 2
Minority interest income 1,028,108 - 896,059 -
$ 23,341,060 2 21,125,381 2
Before Tax After Tax Before Tax After Tax
Earnings per share attributable to parent company
Primary earnings per share $ 7.09 6.09 6.96 5.58
Diluted earnings per share $ 6.90 5.93 6.63 5.31
Primary earnings per share - retroactively afjusted 6.89 5.52
Diluted earnings per share - retroactively afjusted 6.56 5.26
Assuming that company shares held by its subsidiaries are not
regarded as treasury stock:
Pro-forma primary earnings per share $ 7.07 6.07 6.93 5.55
Pro-forma diluted earnings per share $ 6.88 5.91 6.60 5.29
The accompanying notes are an integral part of the financial statements.
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2008
For The Years Ended December 31
2009
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
2009 2008
Amount Amount
Cash flows from operating activities:
Consolidated net income 23,341,060$ 21,125,381
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 4,584,440 4,114,758
Depreciation of rental assets 174,424 25,295
Amortization of corporate bonds issue cost 11,271 8,236
Amortization of discount on issuance of convertible corporate bonds transferred to interest expenses - 48,578
Provision for doubtful accounts and sales allowances 481,248 620,249
Deferred credits transferred to revenue 78 (38,832)
Reversal for impairment loss on property, plant and equipment assets (3,676) (90,196)
(Reversal) provision for impairment loss of idle assets (19,828) 44,223
Provision for warranty reserve 1,128,280 2,332,808
Loss on disposal and retirement of property, plant and equipment, net 103,303 120,055
(Reversal) provision for inventory market price decline and obsolescence (535,522) 1,354,272
Gain on disposal of intangible assets - (2,488)
Loss on long-term investments at equity over cash dividends received 20,265 370,133
Gain on disposal of long-term investments at equity (3,773) -
Amortization of discount on held-to-maturity financial assets 18 (8,886)
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 379,467 703,865
Gain on disposal of financial assets carried at cost (122,900) (215,654)
Gain on redemption of convertible corporate bonds - 164,109
Foreign exchange rate effect on long-term debts (156,705) 63,200
Foreign exchange rate effects 14,821 64,338
Change in assets and liabilities:
Financial assets reported at fair value through profit or loss - current 2,189 (121,781)
Notes receivable 2,409 7,595
Accounts receivable (53,274,973) 34,892,545
Inventories (3,517,906) 27,057,554
Other receivables and other financial assets - current (308,915) (785,032)
Prepayments and other current assets 1,038,179 (1,151,904)
Deferred income tax assets, net (675,550) (647,474)
Financial liabilities reported at fair value through profit or loss - current (18,596) 16,440
Notes payable (118,723) 37,018
Accounts payable 45,965,831 (51,383,199)
Accrued expenses 2,571,031 2,897,846
Income tax payable (1,866,395) 1,610,619
Other payables and other financial liabilities - current 2,032,965 (2,718,349)
Other current liabilities 223,137 1,891,202
Other liabilities 549,883 38,842
Net cash provided by operating activities 22,000,837 42,544,419
(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 Years Ended December 31
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2009 2008
Amount Amount
Cash flows from investing activities:
(Decrease) increase in financial assets reported at fair value through profit or loss - noncurrent 190,683$ (128,001)
Increase in available-for-sale financial assets - current (2,145,540) (17,440,928)
(Decrease) increase in available-for-sale financial assets - noncurrent 273,643 (21,582)
Increase in held-to-maturity financial assets - current (2,097,782) -
Increase in long-term investments at equity (189,664) (81,256)
Decrease in financial assets carried at cost - current 16,049 35,966
Proceeds from sale of long-term investments at equity 8,100 -
Cash paid for subsidiary and minority shareholder acquisition (170,037) (853,421)
Increase in financial assets carried at cost - noncurrent (841,679) (323,926)
Proceeds from return of financial assets carried at cost 255,316 265,830
Proceeds from sale of financial assets carried at cost - noncurrent 1,255 276,638
Decrease in held-to-maturity financial assets - current - 497,752
Increase in held-to-maturity financial assets - noncurrent (96,555) -
Proceeds from sale of property, plant and equipment and idle assets 117,443 895,175
Purchase of property, plant and equipment (5,464,925) (8,522,300)
Purchase of rental assets (180) (121)
Increase in other financial assets - noncurrent (111,356) (13,195)
Increase in intangible assets and other assets (721,859) (401,554)
Increase in restricted deposits (4,367,099) (5,466)
Net cash used in investing activities (15,344,187) (25,820,389)
Cash flows from financing activities:
Increase in short-term debt 29,826,701 1,867,034
Increase in long-term debt - 12,235,669
Repayment of long-term debt (17,325,778) (3,130,472)
Decrease in convertible corporate bonds - (1,268,904)
(Decrease) increase other financial liabilities - noncurrent (7,543) 3,679
Distribution of cash dividends (13,091,995) (12,704,316)
Employee bonuses and remuneration to directors and supervisors - (117,826)
Conversion of employee stock options 84,612 2,839
Purchase of treasury stock - (1,577,601)
Issuance of stocks for cash - 65,000
Changes in minority interest (39,105) -
Net cash (used in) financing activities (553,108) (4,624,898)
Foreign exchange rate effects (531,725) 843,028
Net increase in cash and cash equivalents 5,571,817 12,942,160
Effect of first-time requirement for consolidation of subsidiaries 3,880 -
Cash and cash equivalents, beginning of the year 59,221,542 46,279,382
Cash and cash equivalents, end of the year 64,797,239 59,221,542
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest (excluding capitalized interest) 1,120,345$ 2,280,413
Income tax 7,612,788$ 5,512,374
Non-cash investing and financing activities:
Current portion of long-term debt and convertible corporate bonds 1,665,332$ 3,114,431
Cash dividends payable 327,604$ 190,404
Employee bonuses and remuneration to directors and supervisors payable -$ 55,000
Financial assets reported at fair value through profit or loss transferred from noncurrent to current 128,684$ 145,000
Financial assets carried at cost - current transferred to available-for-sale financial assets - current -$ 65,887
Financial assets carried at cost - noncurrent transferred from noncurrent to current -$ 93,370
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 114,589$ 103,509
Financial assets carried at cost - noncurrent transferred to long-term investments at equity 50,144$ -
Purchase of property and equipment with cash and other payables:
Property, plant and equipment 4,872,036$ 8,832,448
Add: Other payable, beginning of the year 1,100,892 790,744
Less: Other payable, end of the year (508,003) (1,100,892)
Cash paid 5,464,925$ 8,522,300
(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 Years Ended December 31
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
(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, 2009 AND 2008
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2009 2008
Amount Amount
Assets and liabilities of the subsidiaries acquired at fair market value are as follows:
Cash 84,455$ -
Notes receivable and accounts receivable 129,948 -
Other receivable 5,230 -
Inventories 5,242 -
Other current assets 8,592 -
Property, plant and equipment 962,732 -
Other assets 62,951 -
Goodwill (52,525) -
Notes payable and accounts payable (57,048) -
Accrued expenses (46,778) -
Other payables (18,010) -
Long-term dabt (25,801) -
Long-term payable (804,496) -
Total cash inflow 254,492 -
Cash balance of subsidiaries on the acquisition date (84,455) -
Cash paid for the subsidiary acquisition 170,037$ -
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 Certificates of Bond- Advance Receipts Capital Legal Special
Unappropriated
Retained
Unrealized Gain or
Loss on Financial
Cumulative
Translation Minority Total
Stock to-Stock Conversion for Common Stock Surplus Reserve reserve Earnings Treasury Stock Instruments Adjustments Interest
Balance as of January 1, 2008 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 and employee bonuses 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 financial instruments held by investee companies recognized per ownership - - - - - - - - (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
2008 earnings distribution:
Legal reserve - - - - 2,021,945 - (2,021,945) - - - - -
Special reserve - - - - - 1,731,257 (1,731,257) - - - - -
Cash dividends - - - - - - (12,637,538) - - - - (12,637,538)
Stock dividends 361,073 - - - - - (361,073) - - - - -
Consolidated net income for the year ended December 31, 2008 - - - - - - 22,312,952 - - - 1,028,108 23,341,060
Issuance of new shares for cash from minority stakeholders - - - - - - - - - - 37,329 37,329
Cash dividends distributed by minority stakeholders - - - - - - - - - - (591,656) (591,656)
Changes in minority interests - - - - - - - - - - 356,883 356,883
Employee bonuses 372,182 - - 1,377,818 - - - - - - - 1,750,000
Retirement of treasury stock (388,010) - - (71,256) - - (879,599) 1,338,865 - - - -
Convertible corporate bonds converted to common stock 979,254 148,936 - 3,444,036 - - - - - - - 4,572,226
Advance Receipts for employee stock options of exercise - - 47,283 - - - - - - - - 47,283
Effects of change in percentage of ownership in long-term equity investments - - - 35,147 - - - - - - - 35,147
Cumulative translation adjustments - - - - - - - - - (238,215) - (238,215)
Cash dividends received by subsidiaries which company shares held by subsidiaries regarded
as treasury stock - - - 19,953 - - - - - - - 19,953
Unrealized gains on available-for-sale financial assets - - - - - - - - 3,919,389 - - 3,919,389
Company shares held by subsidiaries regarded as treasury stock - - - 72,991 - - - 227,520 - - - 300,511
Unrealized gain on financial instruments held by investee companies recognized per ownership - - - - - - - - 462,106 - - 462,106
Balance as of December 31, 2009 37,819,761$ 148,936 47,283 12,143,990 14,516,146 1,731,257 38,275,607 (475,840) 689,997 1,722,026 7,389,706 114,008,869
(English Translation of Financial Report Originally Issued in Chinese)
Other adjustment itemRetained Earnings
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
(All Amounts Expressed of New Taiwan Dollars in Thousands, Except for Share Data)
The accompanying notes are an integral part of the consolidated financial statements.