HTC 2007 Annual Report Download - page 65

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125124
AN OVERVIEW OFTHE COMPANY'S FINANCIAL STATUS
On its equity-method investments, the Company had
losses of NT$35,112 thousand, NT$12,554 thousand
and a gain of NT$103,997 (US$3,207 thousand) in
2005, 2006 and 2007, respectively.
The financial statements of equity-method investees
had been examined by the Company's independent
auditors.
Under the revised Statement of Financial Accounting
Standards No. 7, "Consolidated Financial
Statements," which took effect on January 1, 2005,
the Company included the accounts of all its direct
and indirect subsidiaries in the consolidated financial
statements as of and for years ended December 31,
2005, 2006 and 2007. All significant intercompany
balances and transactions have been eliminated.
15.PROPERTIES
Properties as of December 31, 2005, 2006 and 2007
were as follows:
2005 2006 2007
Carrying Carrying Accumulated
Value Value Cost Depreciation Carrying Value
NT$ NT$ NT$ NT$ NT$ US$(Note 3)
Land $ 610,293 $ 610,293 $ 610,293 $ - $ 610,293 $ 18,818
Buildings and structures 797,981 735,785 2,239,919 423,030 1,816,889 56,025
Machinery and equipment 987,009 1,020,799 3,336,489 2,298,998 1,037,491 31,992
Molding equipment - - 201,247 201,247 - -
Computer equipment 35,397 41,304 212,623 161,355 51,268 1,581
Transportation equipment 626 706 1,335 851 484 15
Furniture and fixtures 30,640 23,824 115,696 86,641 29,055 896
Leased assets - 3,927 4,712 1,571 3,141 97
Leasehold improvements 5,843 2,656 44,487 23,151 21,336 658
Prepayments for construction-in-progress and equipment-in-transit 27,467 470,330 145,944 - 145,944 4,500
$ 2,495,256 $ 2,909,624 $ 6,912,745 $ 3,196,844 $3,715,901 $ 114,582
•The construction of a new office building was co
m
pleted in
S
epte
m
ber 2007, and a construction a
m
ount of
N
T$933,546 thousand
(
U
S
$28,786 thousand
)
was transferred fro
m
prepay
m
ents for construction in progress to buildings and structures. Prepay
m
ents for
equip
m
ent-in-transit and construction-in-progress referred to building construction and
m
iscellaneous equip
m
ent.
VI
14.INVESTMENTS ACCOUNTED
F
OR BY THE
EQUITY METHOD
Investments accounted for by the equity method as
of December 31, 2005, 2006 and 2007 were as
follows:
2005 2006 2007
Carrying Ownership Carrying Ownership Original Carrying Ownership
Value Percentage Value Percentage Cost Value Percentage
NT$ NT$ NT$ US$(Note 3) NT$ US$(Note 3)
Equity method
H.T.C. (B.V.I.) Corp. $ 323,505 100 $ 422,788 100 $ 1,402,835 $ 43,257 $ 1,427,492 $ 44,017 100
BandRich Inc. - 136,200 51 135,000 4,163 114,487 3,530 51
HTC HK, Limited - - 889 100 1,277 40 8,034 248 100
Communication Global Certification Inc. - - - 100 280,000 8,634 281,621 8,684 100
HTC Asia Pacific Pte. Ltd. - - - 100 560,660 17,288 565,499 17,438 100
Prepayments for long-term investments - - 261,679 - - - - - -
$ 323,505 $ 821,556 $ 2,379,772 $ 73,382 $ 2,397,133 $ 73,917
In August 2000, the Company acquired 100% equity
interest in H.T.C. (B.V.I.) Corp. for NT$12,834
thousand and accounted for this investment by the
equity method. As of December 31, 2007, the
Company had increased this investment to
NT$1,402,835 thousand (US$43,257 thousand).
H.T.C. (B.V.I.) Corp. makes investments on behalf of
the Company.
In April 2006, the Company acquired 92% equity
interest in BandRich Inc. for NT$135,000 thousand
and accounted for this investment by the equity
method. In May 2006, BandRich Inc. issued 12,000
thousand shares of common stock at a price of
NT$12.50 per share of which the Company didn't
purchase. The Company's ownership
percentage declined from 92% to 51% and
resulted in capital surplus - long term equity
investments of NT$15,845 thousand.
In September 2006, the Company acquired 100%
equity interest in HTC HK, Limited for NT$1,277
thousand and accounted for this investment by the
equity method.
In January 2007, the Company acquired 100%
equity interest in Communication Global Certification
Inc. for NT$280,000 thousand (US$8,634 thousand)
and accounted for this investment by the equity
method.
In June 2007, the Company acquired 100% equity
interest in HTC Asia Pacific Pte. Ltd. for NT$560,660
thousand (US$17,288 thousand) and accounted for
this investment by the equity method.
FINANCEI INDEPENDENT AUDITORS' REPORT
l