HTC 2011 Annual Report Download - page 101

12.
In 2011, the Company invested US$3,300 thousand (NT$99,921 thousand) in TransLink Capital Partners II, L.P.
13.
In May 2011, the Company acquired 17.70% equity interest in Shanghai F-road Commercial Co., Ltd. for US$5,500 thousand (NT$166,555
thousand).
14.
In 2011, the Company invested US$14,141 thousand (NT$428,179 thousand) in Primavera Capital (Cayman) Fund L.L.P.
15.
These unquoted equity instruments were not carried at fair value because their fair value could not be reliably measured; thus, the Company
accounted for these investments by the cost method.
(14) INVESTMENTS ACCOUNTED FOR BY THE EQUITY METHOD
The investment accounted for by the equity method as of December 31, 2010 and 2011 was as follows:
2010 2011
Carrying Value Ownership
Percentage Original Cost Carrying Value Ownership Percentage
NT$ NT$ US$ (Note 3) NT$ US$ (Note 3)
Vitamin D Inc. $- $- $- $- $- $-
SYNCTV Corporation - 76,214 2,500 71,732 2,369 20
$- $76,214 $2,500 $71,732 $2,369
1.
In April 2008, the Company made a bond 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 27.27% equity interest in Vitamin D Inc. for NT$40,986
thousand, enabling the Company to exercise significant influence over this investee. Thus, the Company accounted for this investment by the
equity method. After that, the Company's ownership percentage declined from 27.27% to 25.59%, and there was a capital surplus - long-term
equity investments of NT$1,689 thousand in 2008 and NT$671 thousand in 2009. In addition, the Company determined that the recoverable
amount of this investment in 2009 was less than its carrying amount and thus recognized an impairment loss of NT$30,944 thousand. Vitamin
D was dissolved in August 2010.
2.
In September 2011, the Company acquired 20% equity interest in SYNCTV Corporation for US$2,500 thousand and accounts has since
accounted for this investment by the equity method.
3.
On its equity-method investments, the Company had a loss of NT$3,961 thousand (US$131 thousand) in 2011.
4.
The financial statements of the equity-method investees for the year ended December 31, 2011 had been examined by the Company's
independent auditors.
(15) PROPERTIES
Properties as of December 31, 2010 and 2011 were as follows:
2010 2011
Carrying Value Cost Accumulated
Depreciation Carrying Value
NT$ NT$ NT$ NT$ US$ (Note 3)
Land $5,862,076 $7,614,167 $- $7,614,167 $251,467
Buildings and structures 4,192,857 5,999,807 1,008,920 4,990,887 164,830
Machinery and equipment 3,034,967 11,298,070 5,390,749 5,907,321 195,096
Molding equipment - 172,632 172,632 - -
Computer equipment 163,642 765,177 411,448 353,729 11,682
Transportation equipment 4,709 7,710 3,788 3,922 130
Furniture and fixtures 69,689 368,025 201,148 166,877 5,511
Leased assets 1,398 6,730 5,811 919 30
Leasehold improvements 183,853 463,581 119,863 343,718 11,352
Prepayments for construction-in-progress and
equipment-in-transit 511,138 2,130,938 - 2,130,938 70,377
$14,024,329 $28,826,837 $7,314,359 $21,512,478 $710,475
2.
Prepayments to suppliers were primarily for discount purposes
and were classified as current or noncurrent on the basis of their
maturities. As of December 31, 2011, noncurrent prepayments
of NT$2,007,160 thousand (US$66,289 thousand) had been
classified as other assets.
3.
Prepayments for others were primarily for travel and insurance
expenses.
(12) HELD-TO-MATURITY FINANCIAL ASSETS
Held-to-maturity financial assets as of December 31, 2010 and 2011
were as follows:
2010 2011
NT$ NT$ US$ (Note 3)
Corporate bonds $207,946 $204,597 $6,757
In 2010, the Company bought the corporate bonds issued by Nan
Ya Plastics Corporation. These bonds will mature in 2013 and has an
effective interest rate of 0.90%.
(13) FINANCIAL ASSETS CARRIED AT COST
Financial assets carried at cost as of December 31, 2010 and 2011
consisted of domestic unquoted stocks of the following companies:
2010 2011
NT$ NT$ US$
(Note 3)
Hua-Chuang Automobile Information
Technical Center Co., Ltd. $500,000 $500,000 $16,513
Answer Online, Inc. 1,192 1,192 39
BandRich Inc. 15,861 15,861 524
SoundHound Inc. 58,260 67,441 2,227
GSUO Inc. 145,650 242,232 8,000
Felicis Ventures II LP - 68,128 2,250
WI Harper Fund VII - 47,689 1,575
NETQIN MOBILE Inc. 72,825 75,698 2,500
Luminous Optical Technology Co., Ltd. 183,000 183,000 6,044
OnLive, Inc. - 1,211,160 40,000
KKBOX Inc. - 302,790 10,000
TransLink Capital Partners II, L.P. - 99,921 3,300
Shanghai F-road Commercial Co., Ltd. - 166,555 5,501
Primavera Capital (Cayman) Fund L.L.P. - 428,179 14,141
Prepayments for long-term
investments 48,065 - -
1,024,853 3,409,846 112,614
Less: Accumulated impairment loss (1,192) (1,192) (39)
$1,023,661 $3,408,654 $112,575
1.
In January 2007, the Company acquired 10% equity interest in
Hua-Chuang Automobile Information Technical Center Co., Ltd.
for NT$500,000 thousand.
2.
In March 2004, the Company merged with IA Style, Inc. and
acquired 1.82% equity interest in Answer Online, Inc. as a result of
the merger. In 2010, the Company determined that the recoverable
amount of this investment was less than its carrying amount and
thus recognized an impairment loss of NT$1,192 thousand.
3.
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. After that, the Company's
ownership percentage declined from 92% to 18.08% and lost
its significant influence on this investee. When the Company's
ownership percentage changed in July 2010, the Company
transferred this investment to "financial assets carried at cost"
using book value.
4.
In 2009, the Company invested US$2,000 thousand in
SoundHound Inc. (known as Melodis Corporation until May 2010).
The Company increased this investment by US$227 thousand
in 2011. As of December 31, 2011, the Company's investment
in SoundHound Inc. had amounted to US$2,227 thousand
(NT$67,441 thousand), and the ownership percentage was 4.37%.
5.
In 2010, the Company invested US$5,000 thousand in GSUO Inc.
The Company increased this investment by US$3,000 thousand
in 2011. As of December 31, 2011, the Company's investment in
GSUO Inc. had amounted to US$8,000 thousand (NT$242,232
thousand), and the ownership percentage was 16.61%.
6.
In 2010, the Company invested US$750 thousand in Felicis
Ventures II LP But because the registration of this investment
had not been completed as of December 31, 2010, an amount
of US$750 (NT$23,220 thousand) was temporarily accounted
for under "prepayments for long-term investments." When the
registration was completed in 2011, this investment was transferred
to financial assets carried at cost. The Company increased this
investment by US$1,500 thousand in 2011. As of December 31,
2011, the Company's investment in Felicis Ventures II LP had
amounted to US$2,250 thousand (NT$68,128 thousand).
7.
In 2010, the Company invested US$900 thousand in WI Harper
Fund VII. Because the registration of this investment had not
been completed as of December 31, 2010, an amount of US$900
(NT$28,134 thousand) was temporarily accounted for under
"prepayments for long-term investments." When the registration
was completed in 2011, this investment was transferred to
financial assets carried at cost. The Company increased this
investment by US$675 thousand in 2011. As of December 31,
2011, the Company's investment had amounted to US$1,575
thousand (NT$47,689 thousand).
8.
In December 2010, the Company acquired 1.60% equity interest
in NETQIN MOBILE Inc. for US$2,500 thousand.
9.
In December 2010, the Company acquired 10.02% equity interest
in Luminous Optical Technology Co., Ltd. for NT$183,000
thousand.
10.
In February 2011, the Company acquired 3.79% equity interest in
OnLive, Inc. for US$40,000 thousand (NT$1,211,160 thousand).
11.
In March 2011, the Company acquired 11.11% equity interest in
KKBOX Inc. for US$10,000 thousand (NT$302,790 thousand).
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