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Financial Information
| 83
82 |
2008 Annual Report
9.OTHER CURRENT FINANCIAL ASSETS
Other current financial assets as of December 31,
2006, 2007 and 2008 were as follows:
2006
2007
2008
NT$
NT$
NT$
US$
(Note 3)
Other receivables
$
25,297
$
102,344
$
238,053
$
7,258
Interest receivables
24,854
50,444
40,474
1,234
Agency payments
210,077
23,540
37,997
1,158
$
260,228
$
176,328
$
316,524
$
9,650
Other receivables were primarily overseas
value-added tax receivables from customers,
prepayment for withholding income tax of
employees’ bonus and travel expenses and
proceeds of the sales of properties.
10.INVENTORIES
Inventories as of December 31, 2006, 2007 and
2008 were as follows:
2006
2007
2008
NT$
NT$
NT$
US$
(Note 3)
Finished goods
$
1,217,864
$
582,984
$
1,666,089
$
50,795
Work-in-process
1,274,719
2,034,715
2,472,925
75,394
Raw materials
4,445,963
5,741,329
6,019,910
183,534
6,938,546
8,359,028
10,158,924
309,723
Less: Valuation
allowance
(
975,033
)
(
1,121,797
)
(
1,908,587
)
(
58,188
)
$
5,963,513
$
7,237,231
$
8,250,337
$
251,535
The write-down of inventories to their net
realizable value amounted to NT$1,258,148
thousand (US$38,358 thousand) and was
recognized as cost of sales for the year ended
December 31, 2008. For consistency with the
presentation of the financial statements for the
year ended December 31, 2008, the Company
reclassified “provision for loss on inventories”
amounting to NT$774,944 thousand and
NT$684,694 thousand for the years ended
December 31, 2006 and 2007, respectively, to
“cost of sales.”
11.PREPAYMENTS
Prepayments as of December 31, 2006, 2007 and
2008 were as follows:
2006
2007
2008
NT$
NT$
NT$
US$
(Note 3)
Royalty
$
1,631,513
$
1,232,901
$
976,824
$
29,781
Software and hardware
maintenance
81,322
76,732
88,554
2,700
Molding equipment
40,088
158,280
80,420
2,452
Net input VAT
975
23,818
35,517
1,083
Service
10,039
28,513
27,322
833
Materials purchases
4,281
3,719
16,440
501
Others
99,602
43,798
60,406
1,842
$
1,867,820
$
1,567,761
$
1,285,483
$
39,192
Prepayments for royalty were primarily
prepayments for discount purposes (Note 30 has
more information).
Prepayments for others were primarily for rent and
insurance expenses.
12.FINANCIAL ASSETS CARRIED AT COST
Financial assets carried at cost as of December
31, 2006, 2007 and 2008 were as follows:
2006
2007
2008
NT$
NT$
NT$
US$
(Note 3)
Hua-Chuang Automobile
Information Technical
Center Co., Ltd.
$
-
$
500,000
$
500,000
$
15,244
Answer Online, Inc.
1,192
1,192
1,192
36
$
1,192
$
501,192
$
501,192
$
15,280
In January 2007, the Company acquired 10%
equity interest in Hua-Chuang Automobile
Information Technical Center Co., Ltd. for
NT$500,000 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$300,000 thousand at original price, some of
Hua-Chuang’s shares bought by the Company.
In March 2004, the Company merged with IA Style,
Inc. (Note 1) and acquired 1.82% equity interest in
Answer Online, Inc. as a result of the merger.
These unquoted equity instruments were not
carried at fair value because their fair value could
not be reliably measured; thus, the Company
accounted for these investments by the cost
method.
13.BOND INVESTMENTS NOT QUOTED IN AN
ACTIVE MARKET
As of December 31, 2007 the Company had the
following bond investment, which had no quoted
price in an active market:
2007
2007
2008
NT$
NT$
NT$
US$
(Note 3)
Bond investment
$
-
$
33,030
$
-
$
-
Less: Current portion
-
(
33,030
)
-
-
$
-
$-
$
-
$
-
The Company bought 12-month bond issued by
Vitamin D Inc. with 6% annual interest 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.
In April 2008, the Company made a new
investment of US$350 thousand and transferred its
bond investment of US$1,000 thousand to
convertible preferred stocks issued by Vitamin D
Inc. As a result, the Company acquired 27%
equity interest in Vitamin D Inc. and can exercise
significant influence over this investee. The
Company accounts for this investment by the
equity method.
14.INVESTMENTS ACCOUNTED FOR BY THE
EQUITY METHOD
The investment accounted for by the equity
method as of December 31, 2008 was as follows:
2006
2007
2008
Carrying Value
Ownership Percentage
Carrying Value
Ownership Percentage
Original Cost
Carrying Value
Ownership Percentage
NT$
NT$
NT$
US$
NT$
US$
(Note 3)
(Note 3)
Equity method
Vitamin D Inc.
$
-
-
$
-
-
$
40,986
$
1,250
$
39,906
$
1,217
26