Quanta Computer Inc. Annual Report 2011 - 廣達電腦 · the European debt crisis that impacted...
Transcript of Quanta Computer Inc. Annual Report 2011 - 廣達電腦 · the European debt crisis that impacted...
Quanta Computer Inc.
Annual Report 2011
Report to Shareholders
Looking back at the past year, the global PC industry was challenging due to several
unfortunate incidents that led to the global economic slowdown. The series of impactful events
happened in FY2011 include the earthquake in Japan that caused component shortages, followed by
the European debt crisis that impacted the demand of end consumers, then the slow recovery of the
global economy in Europe and in the United States. Lastly, the flood in Thailand that lasted for
almost two months in 4Q of FY2011 also led to HDD supply constraint. However, despite the
challenging global environment, Quanta Computer continues to deliver steady growth momentum.
Through endeavors of our employees, Quanta Computer delivered an outstanding performance in
FY2011. The Company continues to deliver solid business growth as a valuable return to our long-
term investors. Quanta’s performance for FY2011 and outlook for FY2012 are as follow:
I. Revenue and Income
Net revenue in year 2011 sustained at approximately NT$1.06TN, the sustaining revenue was
coupled with improved product mix that led to margin improvement and better profitability. Net
income after tax reached historical high of NT$23.1BN, an impressive increase of NT$4.5BN from
NT$18.6BN in 2010. EPS in 2011 was NT$6.02. Non-operating income and expenses were
NT$13.5BN and NT$1BN respectively.
II. Research and Development (R&D)
The core business of Quanta Computer lies in notebook PCs, the area where we constantly
demonstrate expertise and excellence in notebook manufacturing and innovative product design. In
addition to our core business in notebook manufacturing, we anticipate revenue contribution from
other non-NB business to accelerate gradually in the coming years.
Quanta Computer leverages the “New 3C” ideology to define new product development and
business model. The Company identifies itself as a “System Solution Provider” in Cloud Computing
business through integrating “Cloud Computing”, “Connectivity Technology”, and “Client Device”.
Specifically, Quanta would provide optimized products and value-added services to customers
leveraging the core concept of “defining the basic needs of human being and create value in bringing
such services”. We aim for leveraging business strength in cloud computing, connectivity, and client
devices to provide superior integrated solutions. The ultimate goal is to achieve “3A Coverage” that
enables cloud services to be available at “Anytime”, “Anywhere”, and to “Anyone”. Quanta is
enabling its cloud computing services to reach balanced sharing that is mutually beneficial in order to
deliver a brilliant outcome. Moreover, Quanta is taking the role of a corporate citizen in the society
by utilizing technology to advance the next civilization in human race.
III. Operations and Management
Upon the company’s strategy on product diversification and vertical integration, Quanta
Computer continues to focus on building the fundamentals. In order to optimize resources and to
maximize operation efficiency, the organization is divided into three core business groups, including
notebook business group, cloud computing business group, and manufacturing business group.
Acting on the ideology of an achiever, the management team at Quanta Computer carries out
the new 3C concept in innovative research and product development. To sustain market leadership
and to strengthen competitiveness, the Company focuses its operations on the following areas:
i.Business Expansion:
Destructive Innovation, Start from the “Heart” – spark creativity and seek innovative
solutions to improve current operation. Explore new models and product design.
Expand Revenue Growth – explore new business opportunities and potential customer
base.
ii.Cost Reduction:
Optimize Production – through endeavors of our employees, the Company focuses on
improving operations efficiency through every step in the process.
Control Spending – optimize resources and evaluate alternative solutions at lower
costs. Aside from controlling unnecessary spending, the Company aims to reduce
inventory level, improve yield rate, leverage waste management control to achieve
overall costs control target.
IV. Outlook in 2012
Quanta Computer leverages innovation, creativity, and new service model to satisfy the ever
changing need of the “Generation C”. The company adopts the “3R” concept as ways to successfully
transform its business model from a hardware manufacturer to a cloud computing solution provider.
The Company further advances its understanding of customers’ needs by listening to customers and
re-engineering its business in the following areas:
Re-think: Tap into 3C – Cloud Computing, Connectivity, and Client Device –
And capture emerging business opportunities in 3C
Re-educate: Replicate the success story of Quanta Research Institute to build Quanta
Elite School to further spark creative thinking and to embrace new
challenges
Re-invent: Adjust corporate culture, vision, and core competence
Despite the increasing challenges in the future, Quanta strives to improve and to sustain its
leadership position in the industry. The Company continues to devote more resources in cultivating
new talents and to strengthen our overall competitive edge. The core value of Quanta Computer is
VPA – Vision, Passion, and Action. The value of VPA is the driving force to sustain growth through
visualizing your dreams, having passion in the work you do, and putting everything in action. Quanta
Computer will act on the VPA value to lead the Company in the new 3C era and to head towards the
generation of Cloud Computing in order to deliver long-term value growth to our shareholders.
Chairman: Barry Lam
President: C.C. Leung
Chief Financial Officer: Elton Yang
* Note: ownership is 100% unless otherwise specified
99.90%
24.81%
75.19%
0.43%
29.07%
37%
9%
%
9%
Quanta Computer Inc.
Quanta Int’l Ltd. (QIL)
99.99%
36.76%
Quanta Storage
Inc.
0.81%
Quanta Venture Capital
Co., Ltd.
Gem-Tech Precision Mold Co.,
Ltd.
FaceVsion
(HK)
Technology
Ltd
Puzzle
Logic
USA, Inc.
Puzzle
Logic
Asia, Ltd
Puzzle Logic (ShenZhen)
Ltd.
FaceVsion
Technology
USA LLC
Quanta
Cloud
Tech-
nology
Inc.
Puzzle Logic
Inc.
FaceVsion (Changshu)
Trading Co., Ltd.
QCJ
FaceVsion Technology,
Inc.
RoyalTek Company
Ltd.
QCTI Ltd.
Royaltek
Trading (Changshu)
Co., Ltd.
TWDT Precision Co., Ltd.
Quanta
Micro-
Systems
Inc.
Fly Dragon
International
Ltd.
Dragon City
Metallic
(ChangShu)
Co., Ltd.
DTG
(BVI) Ltd
CloudCast
Tech-
nology Inc.
QMJ
RoyalTek Int’l Enterprises
Ltd.
(Ref. to Chart 2)
(Ref. to Chart 1)
Quanta Computer Inc.
60%
19%
95%
Chart 1
50%
Tech-
Wave
(Shang-
hai)
Warehous-
ing Co.,
Ltd.
(TWW)
QCT
LLC
(QCTU)
Tech-
Wave
(Chong-
qing)
Warehous
-ing Co.,
Ltd.
(TWW)
Tech-
Full
(Chang-
shu)
Computer
Co., Ltd.
(TNC)
Quanta Int’l Ltd.
(QIL)
Kenseisha
Shanghai
P.M.P.
Co., Ltd.
(KSH)
Cloudex
(Shang
-hai)
Tech-
nology
Co., Ltd.
QCE
Computer BV
(QCE)
Quanta Asia
Ltd.
(QAL)
Quanta Capital
Management
Ltd. (QCML)
Access
Int’l Co.
(AIC)
Quanta
Research
Int’l Inc. (QRII)
QCG
Computer
GMBH
QCH
Inc.
(QCH)
Q_Bus
Int’l
Ltd.,
Quanta
Manufac-
turing Inc.
(QMI)
Exmore
Services
Holding
Limited,
Zhan Yun
(Changshu)
Electronics
Co., Ltd.
Quanta Int’l
Technology
Ltd.
(QIT)
Exmore Services
Holding
(Hong Kong) LD
Quanta
Development
Ltd.
(QDL)
Tech
Chain
Ltd.
Tech Chain
(Hong Kong)
LTD
THINKTECH
IND. E COM. DE
INFORMATICA
SA
Quanta
Service
Inc.
(QSI)
Quanta
Computer
USA, Inc
(QCA)
Quanta
Development
(Hong Kong) LTD
Quanta
Research
Cambridge
Inc.
(QRC)
Tech-
Front
(Shang-
hai)
Computer
Co., Ltd.
(TFC)
Tech-
Com
(Shang-hai)
Computer
Co., Ltd. (TCC)
Tech-
Trend
(Shang-
hai)
Computer
Co., Ltd.
(TTC)
Tech-
Lead
(Shang-
hai)
Computer
Co., Ltd.
(TLC)
Tech-
Giant
(Shang-
hai)
Computer
Co., Ltd.
(TGC)
Zhan Yun
(Chongqing)
Electronics
Co., Ltd.
QMN
LLC
QCHN,
LLC.,
QSN,
LLC.,
QCN,
LLC Standard
(Shanghai) Energy
Co., Ltd.
Tech-
Front
(Chong-
qing)
Computer
Co., Ltd.
(TFQ)
Cloudex
(Bei-
jing)
Tech-
nology
Co., Ltd.
Gem-Tech
(Shanghai)
Precision
Mold Co.,
Ltd.
Zhan Yun
(Shanghai)
Electronics Co., Ltd.
* Note: ownership is 100% unless otherwise specified
* Note: ownership is 100% unless otherwise specified
Quanta Storage Inc.
Quanta Storage
International Lt.
(CAYMAN)
Quanta Storage
(BVI)Ltd.
Quanta Storage (Shanghai) Ltd.
Quanta Storage
Holding Ltd.
E-Forward
Technology Ltd.
Quanta Storage
Asia Ltd.
Quanta Storage
America, Inc.
Quanta Storage
Investment Ltd.
Techman Electronics
(Changshu) Co., Ltd.
Quanta Storage
Holding (HK)
Ltd.
Quanta Storage Investments (HK) Ltd.
Quanta Storage (Changshu)
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 consolidated balance sheets of Quanta Computer Inc. and its
subsidiaries (the Consolidated Company) as of December 31, 2011 and 2010, and the related
consolidated statements of income, changes in stockholders’ equity, and cash flows for the years then
ended. These consolidated 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 consolidated financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and
disclosures in the consolidated 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 consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Quanta Computer Inc. and its subsidiaries as of December 31, 2011
and 2010, and the results of its operations and its consolidated cash flows for the years then ended in
conformity with Guidelines Governing the Preparation of Financial Reports by Securities Issuers,
and accounting principles generally accepted in the Republic of China
KPMG
CPA: Lin, Wan Wan
Chiang, Chung Yi
March 29, 2012
Amount % Amount %
ASSETS
Current Asset:
Cash and cash equivalents $ 263,884,423 40 137,043,179 27
Financial assets reported at fair value through profit or loss - current 355,316 - 500,021 -
Available-for-sale financial assets - current 19,807,504 3 34,097,722 7
Held-to-maturity financial assets - current 734,138 - - -
Financial assets carried at cost - current - - 841 -
Notes receivable, net 20,964 - 8,325 -
Accounts receivable, net
- Related parties 239,571 - 319,057 -
- Other customers 187,367,040 28 181,192,894 36
Other receivables, net
- Related parties 802 - 266,942 -
- Other customers 2,069,338 - 1,370,895 -
Other financial asset - current 13,404,752 2 8,065,518 2
Inventories 113,906,740 17 81,374,457 16
Prepayments 1,165,239 - 1,474,625 -
Deferred income tax assets - current 2,413,474 - 1,931,477 -
Other current assets 826,112 - 675,111 -
606,195,413 90 448,321,064 88
Investments:
Available-for-sale financial assets - noncurrent 204,011 - 2,782,747 1
Held-to-maturity financial assets - noncurrent - - 137,568 -
Financial assets carried at cost - noncurrent 7,385,277 1 7,833,013 2
Long-term investments at equity 683,703 - 1,016,412 -
Other financial assets - noncurrent 297,081 - 332,449 -
8,570,072 1 12,102,189 3
Property, Plant and Equipment at Cost:
Land 2,999,883 1 2,999,883 1
Buildings 28,250,508 4 24,546,582 5
Machinery and equipment 39,550,107 6 32,225,214 6
Molds and tools 583,793 - 431,772 -
Transportation equipment 163,789 - 142,086 -
Furniture and office facilities 1,726,343 - 1,489,541 -
Leasehold improvements 1,638,937 - 1,485,233 -
Miscellaneous equipments 3,602,445 1 2,905,317 1
78,515,805 12 66,225,628 13
Less: Accumulated depreciation (25,487,715) (3) (19,114,473) (4)
Less: Accumulated impairment - - (84,000) -
Construction in progress 169,466 - 1,112,411 -
Prepayments for equipments 125,157 - 93,522 -
53,322,713 9 48,233,088 9
Intangible Assets 1,724,178 - 1,639,057 -
Other Assets
Rental assets 183,839 - 261,307 -
Idle assets 74,177 - - -
Deferred income tax assets -noncurrent 88,418 - 788,477 -
Other assets 749,912 - 638,799 -
1,096,346 - 1,688,583 -
TOTAL ASSETS $ 670,908,722 100 511,983,981 100
The accompanying notes are an integral part of the financial statements.
December 31, 2011 December 31, 2010
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2011 AND 2010
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
Amount % Amount %
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term debt $ 268,713,067 40 131,127,619 26
Financial liabilities reported at fair value through profit or loss - current - - 16,445 -
Notes payable 21,515 - 20,064 -
Accounts payable
- Related parties 329,384 - 389,346 -
- Vendors 197,546,768 29 192,010,502 37
Income tax payable 8,726,279 1 4,323,148 1
Accrued expenses 12,332,556 2 10,970,529 2
Other payables 3,671,891 1 4,322,660 1
Other financial liabilities - current 6,076,501 1 3,500,936 1
Current portion of long-term debt - - 48,826 -
Warranty reserve 11,238,049 2 11,445,915 2
Other current liabilities 5,481,598 1 4,464,618 1
514,137,608 77 362,640,608 71
Long-Term Liabilities:
Long-term debt 32,679,957 5 29,784,149 6
Other financial liabilities - noncurrent 56,142 - 62,892 -
32,736,099 5 29,847,041 6
Other Liabilities:
Accrued pension cost 1,603 - - -
Other liabilities 271,658 - 372,492 -
273,261 - 372,492 -
Total Liabilities 547,146,968 82 392,860,141 77
Stockholders' Equity::
Common stock - authorized 4,200,000 thousand shares, 3,841,059 thousand
shares issued and outstanding in 2011; 3,833,873 thousand
shares issued and outstanding in 2010
38,410,594 6 38,338,734 8
Advance receipts for common stock 6,243 - 21,388 -
Capital Surplus:
Premium on stock issuance 13,356,022 2 13,178,421 3
Treasury stock 183,953 - 141,322 -
Donated surplus 44 - 44 -
Long-term investments at equity 520,167 - 507,473 -
14,060,186 2 13,827,260 3
Retained Earnings:
Legal reserve 18,606,648 3 16,747,441 3
Retained earnings - unappropriated 49,620,745 7 42,249,265 8
68,227,393 10 58,996,706 11
Other Adjustments to Stockholders' Equity:
Cumulative translation adjustments 2,552,491 - 731,137 -
Net loss not recognized as pension cost (76) - - -
Unrealized gain on financial instruments (6,579,593) (1) 163,394 -
Treasury Stock (333,094) - (475,840) -
(4,360,272) (1) 418,691 -
Total Parent Company's Equity 116,344,144 17 111,602,779 22
Minority interest 7,417,610 1 7,521,061 1
TOTAL Stockholders' Equity 123,761,754 18 119,123,840 23
Commitments and contingencies Liabilities
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 670,908,722 100 511,983,981 100
December 31, 2011 December 31, 2010
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, 2011 AND 2010
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
Amount % Amount %
Operating Revenues
Sales Revenue $ 1,119,323,317 101 1,130,040,119 100
Less: Sales returns (5,583,319) (1) (4,477,166) -
Sales allowances (4,012,137) - (835,399) -
Net sales 1,109,727,861 100 1,124,727,554 100
Cost of goods sold (1,067,204,135) (96) (1,085,917,347) (97)
Gross margin 42,523,726 4 38,810,207 3
Unrealized gross profit- end of the period (1,215) - (302) -
Realized gains profit-beginning of the period 302 - 321 -
42,522,813 4 38,810,226 3
Operating expenses
Selling expenses (10,380,695) (1) (7,852,052) (1)
General and administrative expenses (7,086,025) (1) (5,899,405) -
Research and development expenses (9,171,294) (1) (9,082,567) (1)
(26,638,014) (3) (22,834,024) (2)
Income from operations 15,884,799 1 15,976,202 1
Non-operating income
Interest income 7,336,340 1 1,548,279 -
Investment income recognized under equity method 26,348 - 69,606 -
Dividend income 690,403 - 451,847 -
Gain on disposal of investments 2,023,279 - 760,488 -
Foreign exchange gains, net 8,886,909 1 4,587,487 -
Gain on valuation of financial assets 62,299 - 87,888 -
Gain on valuation of financial liabilities - - 1,489 -
Miscellaneous income 4,151,970 - 5,351,077 1
23,177,548 2 12,858,161 1
Non-operating expenses
Interest expense (5,422,722) - (1,495,768) -
Impairment loss (344,463) - (113,491) -
Loss on valuation of financial liabilities (30,787) - - -
Miscellaneous disbursements (722,924) - (516,362) -
(6,520,896) - (2,125,621) -
Income before income tax 32,541,451 3 26,708,742 2
Income tax expense (9,042,722) (1) (7,377,771) -
Consolidated net income $ 23,498,729 2 19,330,971 2
Income attributable to :
Shareholders of parent company $ 23,052,536 2 18,592,075 2
Minority interest income 446,193 - 738,896 -
$ 23,498,729 2 19,330,971 2
Before Tax After Tax Before Tax After Tax
Earnings per share attributable to parent company
Primary earnings per share $ 7.16 6.02 6.11 4.89
Diluted earnings per share $ 7.06 5.93 6.00 4.80
Assuming that company shares held by its subsidiaries are not
regarded as treasury stock:
Pro-forma primary earnings per share $ 7.15 6.01 6.10 4.87
Pro-forma diluted earnings per share $ 7.05 5.92 5.98 4.78
The accompanying notes are an integral part of the financial statements.
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(English Translation of Financial Report Originally Issued in Chinese)
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2010
For The Years Ended December 31
2011
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
2011 2010
Amount Amount
Cash flows from operating activities:
Consolidated net income 23,498,729$ 19,330,971
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities:
Depreciation 5,873,618 5,019,432
Amortization 613,389 536,835
Provision for doubtful accounts 96,715 195,757
Provision (reversal) for sales return and allowances 2,100,951 (1,041,439)
Reversal for warranty reserve (308,936) (1,194,014)
Amortization of premium on financial assets 16 19
Foreign exchange rate effect convertible corporate on bonds payable - (16,498)
Amortization of corporate bonds issue cost - 1,374
Provision for inventory market price decline and obsolescene 674,556 1,635,875
Investments income recognized under equtiy method (26,348) (69,606)
Cash dividends received from long-term investment at equity 89,351 11,659
Loss on disposal and retirement of property, plant and equipment 113,071 62,493
Expense reclassified from property, plant and equipment 4,127 2,473
Gain on disposal of intangible assets (14) -
(Gain) loss on disposal and retirement of idle assets (19,570) 17,524
Loss on disposal of other assets - 42
Gain on disposal of investements (2,209,653) (760,186)
Gain on disposal of long-term investment at equity (4,019) -
Unrealized valuattion gain of financial assets and liabilities (3,432) -
Loss on permanent market decline on financial assets 344,463 113,491
Reversal for impairment loss of non-financial assets (79) (23,313)
Unrealized (gain) loss of foreign-exchange (3,240) 9,015
Effects of exchange rate change on long-term debt 686,263 (1,375,350)
Others 74,593 755,322
Change in operating assets and liabilities:
Decrease in financial assets held for trading 148,704 383,520
Increase in notes receivable (12,640) (1,423)
Decrease (increase) in accounts receivable 2,306,963 (36,522,095)
Increase in other receivables (211,800) (375,821)
Increase in inventories (28,992,820) (32,044,702)
Decrease ( increase) in prepayments 427,208 (683,528)
( Increase) decrease in other current assets (167,161) 80,255
Increase in other financial assets (1,173,165) (496,777)
( Increase) decrease in deferred income tax assets (66,224) 135,763
(Decrease) increase in financial liabilities held for trading (16,445) 16,445
Increase in notes payable 1,436 8,158
(Decrease) increase in accounts payable (9,530,534) 42,796,294
Increase in income tax payable 4,199,714 2,129,646
Increase in accrued expense 762,688 639,037
(Decrease) increase in other payable (395,862) 118,805
Increase in other financial liabilities 2,474,631 173,978
Increase in other current liabilities 1,027,138 2,127,689
Decrease in other operating liabilities (120,625) (125,692)
Net cash provided by operating activities 2,255,757 1,571,428
(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, 2011 AND 2010
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2011 2010
Amount Amount
Cash flows from investing activities:
Acquisitions of available-for-sale financial assets (116,169,492) (138,483,832)
Proceeds from disposal of available-for-sale financial assets 129,535,974 136,701,077
Acquisitions of held-to-maturity financial assets (545,919) -
Proceeds from disposal of held-to-muturity financial investment - 2,097,782
Acquisitions of financial assets carried at cost (1,206,872) (271,927)
Proceeds from disposal of financial assets carried at cost 147,175 521,779
Proceeds from return of capital by financial assets carried at cost 542,955 349,955
Increase in long-term investments at equity - (59,969)
Proceeds from disposal of long-term investments at equity 34,908 10,573
Acquision of subsidiray (440,559) (40,770)
Proceeds from return of capital by long-term investment at equity 40,324 13,198
Purchase of property, plant and equipment (7,165,545) (10,563,353)
Proceeds from disposal of property, plant and equipment 486,632 99,213
Purchase of rental assets (188) (43,272)
Proceeds from disposal of idle assets - 248
Purchase of intangible assets (129,947) (140,551)
Proceeds from disposal of intangible assets 29,707 -
Increase in other financial assets (2,974,237) (3,483,190)
Increase in other assets (540,379) (593,281)
Net cash provided by (used in) investing activities 1,644,537 (13,886,320)
Cash flows from financing activities:
Increase in short-term debts 123,418,211 72,107,046
Redemption of convertible corporate bonds - (3,240)
Increase in long-term debts 1,720,800 33,558,807
Repayment of long-term debts (63,486) (1,807,128)
(Decrease) increase in other financial liabilities (10,356) 16,165
Distribution of cash dividends (14,168,728) (14,640,845)
Issuance of capital by cash 204,260 234,000
Capital return (138,734) -
Conversion of employee stock options 234,316 433,736
Cost of treasury stocks bought back (138,960) -
Changes in minority interest - (173,250)
Net cash provided by financing activities 111,057,323 89,725,291
Foreign exchange rate effects 11,883,627 (5,164,459)
Net increase in cash and cash equivalents 126,841,244 72,245,940
Cash and cash equivalents, beginning of the period 137,043,179 64,797,239
Cash and cash equivalents, end of the period 263,884,423$ 137,043,179
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest 4,922,691$ 1,290,299
Income tax 4,719,627$ 5,197,748
Non-cash investing and financing activities:
Current portion of long-term debt -$ 48,825
Cash dividends payable 735,744$ 209,109
Financial assets carried at cost transferred to available-for-sale financial assets 218,743$ 783,681
Financial assets carried at cost transferred to long-term investments at equity -$ 144,987
Purchase of property and equipment with cash and other payables:
Property, plant and equipment 6,865,261$ 11,179,914
Decrease (increase) in payables on equipment 300,284 (616,561)
Cash paid 7,165,545$ 10,563,353
The accompanying notes are an integral part of the consolidated financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
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, 2011 AND 2010
(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, 2011 AND 2010
(All Amounts Expressed in Thousands of New Taiwan Dollars, Except for Share Data)
2011 2010
Amount Amount
Acquisition of assets and liabilities of fair value of subsidiaries
Cash 84,011$ 321,764
Notes receivable and accounts receivable 345,362 1,396,563
Other receivables 8,811 2,971
Other financial assets - current 101,799 -
Inventories 68,510 239,957
Prepayments 3,621 -
Other current assets 2,378 167
Property, plant and equipment 1,272,888 258,564
Intangible assets 29,848 -
Other assets 1,901 6,829
Goodwill 214,669 114,997
Minority interest - (276,997)
Short-term debts (1,336,228) (339,644)
Notes payable and accounts payable (202,981) (1,287,819)
Accrued expenses (24,350) (563)
Income tax payable - (1,383)
Other payables (45,228) (27,596)
Other current liabilities (441) (45,276)
Purchase price on acquisition of subsidiaires 524,570 362,534
Cash balance of subsidiaries at the acquisition date (84,011) (321,764)
Cash paid on acquisition of subsidiaries 440,559$ 40,770
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
Cumulative
Translation
Net loss
not recognized
Unrealized Gain or
Loss on Financial Minority Total
Stock to-Stock Conversion for Common Stock Surplus Reserve reserve Earnings Adjustments as pension cost Instruments Treasury Stock Interest
Balance as of January 1, 2010 37,819,761$ 148,936 47,283 12,143,990 14,516,146 1,731,257 38,275,607 1,722,026 - 689,997 (475,840) 7,389,706 114,008,869
Reversal of special reserve - - - - - (1,731,257) 1,731,257 - - - - - -
Conversion of empleyee stock options 121,690 - (25,895) 328,511 - - - - - - - - 424,306
Convertible bonds payable converted into common stock 397,283 (148,936) - 1,397,247 - - - - - - - - 1,645,594
Dividends distributed to subsidiaries as an adjustment of capital surplus - - - 15,686 - - - - - - - - 15,686
Consolidated net income for the year ended December 31, 2010 - - - - - - 18,592,075 - - - - 738,896 19,330,971
2009 earnings distribution: (Note 1)
Legal reserve - - - - 2,231,295 - (2,231,295) - - - - - -
Cash dividends - - - - - - (14,118,379) - - - - - (14,118,379)
Effects of change in percentage of ownership in long-term equity investments - - - (22,616) - - - - - - - - (22,616)
Unrealized loss on available-for-sale financial assets - - - - - - - - - (451,543) - - (451,543)
Changes in minority interests - - - - - - - - - - - (607,541) (607,541)
Changes in equities of investee company under the equity method recognized according to ownership - - - (35,558) - - - (990,889) - (75,060) - - (1,101,507)
Balance as of December 31, 2010 38,338,734 - 21,388 13,827,260 16,747,441 - 42,249,265 731,137 - 163,394 (475,840) 7,521,061 119,123,840
Conversion of empleyee stock options 71,860 - (15,145) 177,601 - - - - - - - - 234,316
Disposal of company shares held by subsidiaries regarded as treasury stock transactions - - - 31,902 - - - - - - 142,746 - 174,648
Convertible bonds payable converted to common stock - - - 10,729 - - - - - - - - 10,729
Consolidated net income for the year ended December 31, 2011 - - - - - - 23,052,536 - - - - 446,193 23,498,729
2010 earnings distribution: (Note 2)
Legal reserve - - - - 1,859,207 - (1,859,207) - - - - - -
Cash dividends - - - - - - (13,821,849) - - - - - (13,821,849)
Effects of change in percentage of ownership in long-term equity investments - - - 276 - - - - - - - - 276
Unrealized loss on available-for-sale financial assets - - - - - - - - - (6,405,505) - - (6,405,505)
Changes in minority interests - - - - - - - - - - - (549,644) (549,644)
Changes in equities of investee company under the equity method recognized according to ownership - - - 12,418 - - - 1,821,354 (76) (337,482) - - 1,496,214
Balance as of December 31, 2011 38,410,594$ - 6,243 14,060,186 18,606,648 - 49,620,745 2,552,491 (76) (6,579,593) (333,094) 7,417,610 123,761,754
Note 1: Bonuses to employees amounted to 1,985,000 and emoluments to directors amounted to 42,000 had been charged against earnings.
Note 2: Bonuses to employees amounted to 1,655,000 and emoluments to directors amounted to 42,000 had been charged against earnings.
Retained Earnings Other adjustment item
The accompanying notes are an integral part of the consolidated financial statements.
(English Translation of Financial Report Originally Issued in Chinese)
QUANTA COMPUTER INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(All Amounts Expressed of New Taiwan Dollars in Thousands, Except for Share Data)