HTC 2007 Annual Report Download - page 91

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AN OVERVIEW OFTHE COMPANY'S FINANCIAL STATUS
177176
12.
F
INANCIAL ASSETS CARRIED AT COST
Financial assets carried at cost as of December 31,
2005, 2006 and 2007 were as follows:
2005 2006 2007
NT$ NT$ NT$ US$(Note 3)
Hua-Chuang Automobile Information
Technical Center Co., Ltd. $ - $ - $500,000 $15,418
Answer Online, Inc. 1,192 1,192 1,192 37
$ 1,192 $ 1,192 $501,192 $15,455
In January 2007, the Company acquired 10% equity
interest in Hua-Chuang Automobile Information
Technical Center Co., Ltd. for NT$500,000 thousand
(US$15,418 thousand). The Company also signed a
joint venture agreement with Yulon Group, the main
stockholder of Hua-Chuang. Under the agreement,
the Company and Yulon Group may, between
January 1, 2010 and December 31, 2011, submit
written requests to each other for Yulon Group to
buy back NT$300,000 thousand at original price,
some of Hua-Chuang's shares bought by the
Company.
In March 2004, the Company merged with IA Style,
Inc. (Note 1) and acquired 1.82% equity interest in
Answer Online, Inc. as a result of the merger.
These unquoted equity instruments were not carried
at fair value because their fair value could not be
reliably measured; thus, the Company accounted for
these investments by the cost method.
13. BOND INVESTMENTS WITH NO ACTIVE
MARKET
As of December 31, 2007, the Company had the
following investment in bonds not quoted in an active
market:
NT$ US$(Note 3)
Bond investment $ 33,030 $ 1,019
Less current portion ( 33,030) ( 1,019)
$ - $ -
The above 12-month bond investment, with 6%
annual interest, was acquired by the Company for
NT$33,030 thousand (US$1,000 thousand). The
unquoted debt instrument was not carried at fair
value because its fair value could not be reliably
measured.
VI
9. OTHER CURRENT
F
INANCIAL ASSETS
Other current financial assets as of December 31,
2005, 2006 and 2007 were as follows:
2005 2006 2007
NT$ NT$ NT$ US$(Note 3)
Restricted current assets $ - $ - $ 34,500 $ 1,064
Agency payments 31,816 210,077 23,540 726
Other receivables 20,319 25,297 102,344 3,156
Interest receivables 15,566 24,854 50,444 1,555
$ 67,701 $260,228 $210,828 $ 6,501
Restricted current assets were time deposits
provided as collaterals for long-term loans.
Agency payments were primarily royalty and other
prepayments on behalf of vendors and customers.
Other receivables were primarily overseas value-
added tax receivables from customers,
compensation from service charges, prepayment for
employees' travel expenses and proceeds of sales
of properties.
10. INVENTORIES
Inventories as of December 31, 2005, 2006 and
2007 were as follows:
2005 2006 2007
NT$ NT$ NT$ US$(Note 3)
Finished goods $ 703,834 $1,217,864 $ 582,455 $ 17,960
Work-in-process 1,868,373 1,274,719 2,034,715 62,742
Raw materials 3,332,551 4,445,963 5,741,329 177,037
5,904,758 6,938,546 8,358,499 257,739
Less valuation allowance (586,727) (975,033) (1,121,797) (34,591)
$5,318,031 $5,963,513 $7,236,702 $223,148
11. PREPAYMENTS
Prepayments as of December 31, 2005, 2006 and
2007 referred to the following items:
2005 2006 2007
NT$ NT$ NT$ US$(Note 3)
Royalty (Note 29) $ 274,489 $1,631,513 $1,232,901 $ 38,017
Software and hardware maintenance
22,984 81,322 76,732 2,366
Travel 16,034 47,153 7,390 228
Molding equipment 57,700 40,088 158,280 4,881
Service 18,224 10,039 28,513 879
Others 28,533 57,705 63,945 1,972
$ 417,964 $1,867,820 $1,567,761 $ 48,343
FINANCEI CONSOLIDATED REPORT
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