RNS Number:1327W
GVC Corporation
20 May 2002
Report of Independent Accountants
To the Board of Directors and Stockholders of GVC Corporation
We have audited the accompanying balance sheets of GVC Corporation (the Company)
as of December 31, 2001 and 2000, and the related statements of income, of
changes in stockholders' equity and of cash flows for the years then ended.
These 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. The 2001 and 2000 financial statements of
certain investee companies accounted for under the equity method were audited by
other auditors, whose reports thereon were furnished to us. Long-term
investments in these investee companies were NT$572,426 thousand and NT$574,268
thousand as of December 31, 2001 and 2000, representing 3.90 percent and 3.11
percent of the Company's total assets, respectively, and the related
investment losses were NT$76,547 thousand and NT$177,292 thousand for the years
then ended, representing (835.30) percent and 166.07 percent of income (loss)
before income tax (including the income (loss) from continuing and discontinued
operations), respectively. Our opinion expressed herein, insofar as it relates
to the amounts included for these investee companies and information disclosed
in Note 11 relative to these long-term investments, is based solely on the
reports of the other auditors.
We conducted our audits in accordance with the "Rules Governing
Examination of Financial Statements by Certified Public Accountants" and
generally accepted auditing standards in the Republic of China. These standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the 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 and the reports of other auditors provide a reasonable basis for our
opinion.
In our opinion, based on our audits and the reports of other auditors, the
financial statements referred to in the first paragraph present fairly, in all
material respects, the financial position of GVC Corporation as of December 31,
2001 and 2000, and the results of its operations and its cash flows for the
years then ended in conformity with "The Rules Governing the Preparation of
Financial Statements of Securities Issuers" and the accounting principles
generally accepted in the Republic of China.
February 25, 2002
-------------------------------------------------------------------------------
The accompanying financial statements are not intended to present the financial
position and results of operations and cash flows in accordance with accounting
principles and practices generally accepted in countries and jurisdictions other
than the Republic of China. The standards, procedures and practices in the
Republic of China governing the audit of such financial statements may differ
from those generally accepted in countries and jurisdictions other than the
Republic of China. Accordingly, the accompanying financial statements and report
of the independent accountants are not intended for use by those who are not
informed about the accounting principles or auditing standards generally
accepted in the Republic of China, and their applications in practice.
GVC CORPORATION
BALANCE SHEETS
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
December 31,
2001 2000
Amount % Amount %
ASSETS
Current Assets
Cash (Note 4(1)) $ 2,242,517 15 $ 1,939,887 10
Short-term investments 907 - 5,575 -
Notes receivable - net (Notes 4(2) and 5) 213,676 1 67,903 -
Accounts receivable - net - third parties (Note 4(3)) 1,098,764 8 1,455,154 8
Accounts receivable - net - related parties (Note 5) 190,852 1 607,317 3
Other receivables - third parties (Note 4(10)) 423,149 3 125,433 1
Other receivables - related parties (Note 5) 453,814 3 580,417 3
Inventories - net (Note 4(4)) 774,266 5 2,882,414 16
Other current assets (Notes 4(10), 4(11) and 6) 4,051,582 28 339,640 2
9,449,527 64 8,003,740 43
Long-term Investments
Long-term investments (Notes 4(5) and 5) 2,001,518 14 3,541,609 19
Cash surrender value of life insurance 31 - 31 -
2,001,549 14 3,541,640 19
Property, Plant and Equipment (Notes 4(6), 5 and 6)
Cost
Land 531,482 4 750,789 4
Buildings 487,690 3 561,084 3
Machinery 800,585 6 847,360 5
Transportation equipment 4,377 - 3,985 -
Miscellaneous equipment 450,050 3 506,802 3
2,274,184 16 2,670,020 15
Less: accumulated depreciation ( 611,537) ( 4) ( 534,715) ( 3)
Prepayments on equipment 50,860 - 29,752 -
1,713,507 12 2,165,057 12
Other Assets
Rental assets 284,676 2 - -
Idle assets 26,773 - 9,762 -
Refundable deposits 4,145 - 5,615 -
Deferred charges 65,133 - 105,868 1
Deferred income tax assets - non-current (Note 4(10)) 1,098,341 8 1,205,425 7
Other assets - others (Notes 4(3), 4(7), 4(11) and 6) 17,065 - 3,411,377 18
1,496,133 10 4,738,047 26
TOTAL ASSETS $ 14,660,716 100 $ 18,448,484 100
GVC CORPORATION
BALANCE SHEETS (CONTINUED)
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
December 31,
2001 2000
Amount % Amount %
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term bank loans (Note 4(8)) $ 2,292,482 16 $ 3,163,886 17
Commercial paper (Note 4(9)) - - 49,867 -
Notes payable - third parties 363,627 2 654,983 4
Accounts payable - third parties 990,587 7 1,627,973 9
Accounts payable - related parties (Note 5) 247,029 2 401,088 2
Accrued expenses 374,006 3 523,706 3
Advance collections (Note 5) - - 784,000 4
Current portion of long-term liabilities (Notes 4(11), 4(12) and 4,031,059 27 431,667 2
6)
Other current liabilities (Notes 4 (5) and 5) 462,054 3 248,179 2
8,760,844 60 7,885,349 43
Long-term Liabilities
Bonds payable (Note 4(11)) - - 4,440,677 24
Long-term bank loans (Notes 4(12) and 6) 499,166 3 735,833 4
499,166 3 5,176,510 28
Other Liabilities
Accrued pension expense (Note 4(13)) 103,969 1 100,819 -
Deposits-in 68 - 1,531 -
Other liabilities - others 5,930 - 18,191 -
109,967 1 120,541 -
Total Liabilities 9,369,977 64 13,182,400 71
Stockholders' Equity
Capital stock (Note 4(14))
Common stock 4,886,683 33 4,886,683 27
Capital reserve (Note 4(15))
Gain on disposal of property, plant and equipment - net of tax 60,119 1 52,126 -
Adjustment from change of stockholders' equity of investee 20,205 - 173,213 1
company
Retained earnings
Legal reserve (Note 4(16)) 6,891 - - -
Unappropriated earnings (Note 4(17)) 154,265 1 68,910 -
Unrealized loss on long-term investments (Note 4(5)) ( 86,863) ( 1) ( 102,190) -
Cumulative translation adjustment 265,062 2 187,342 1
Treasury stocks (Note 4(18)) ( 15,623) - - -
Total Stockholders' Equity 5,290,739 36 5,266,084 29
Commitments and Contingent Liabilities (Notes 5 and 7)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,660,716 100 $ 18,448,484 100
The accompanying notes are an integral part of these financial statements.
See report of independent accountants dated February 25, 2002.
GVC CORPORATION
INCOME STATEMENTS
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT FOR EARNINGS PER SHARE)
For The Years Ended December 31,
2001 2000
Amount % Amount %
Operating revenue (Note 5) $ 10,299,896 102 $ 9,524,109 100
Less: Sales returns and allowances ( 182,824) ( 2) ( 29,229) -
Operating revenue - net 10,117,072 100 9,494,880 100
Operating costs (Note 5) ( 9,339,786) ( 92) ( 8,700,766) ( 91)
Gross profit 777,286 8 794,114 9
Operating expenses (Note 5)
Selling expenses ( 384,332) ( 4) ( 342,366) ( 4)
Management and general expenses ( 325,178) ( 3) ( 299,654) ( 3)
Research and development expenses ( 447,867) ( 5) ( 485,141) ( 5)
( 1,157,377) ( 12) ( 1,127,161) ( 12)
Operating loss ( 380,091) ( 4) ( 333,047) ( 3)
Non-operating income
Interest income 154,303 2 260,684 3
Investment income (Note 4(5)) 16,526 - 415,094 4
Gain on disposal of property, plant and equipment (Note 5) 13,184 - 31,286 -
Gain on disposal of investments (Note 5) 1,041,902 10 206,140 2
Exchange gain - net 24,647 - - -
Recovery in market value of short-term investments 1,323 - 84,447 1
Reversal of provision for decline in market value and inventory 1,884 - - -
obsolescence
Other income (Notes 4(11) and 5) 266,442 3 271,181 3
1,520,211 15 1,268,832 13
Non-operating expenses
Interest expense ( 531,676) ( 5) ( 605,637) ( 6)
Investment loss (Note 4(5)) ( 153,545) ( 1) - -
Exchange loss - net - - ( 84,730) ( 1)
Provision for decline in market value and inventory obsolescence - - ( 124,061) ( 1)
Provision for decline in market value of idle assets ( 61,500) ( 1) ( 5,073) -
Other expenses and losses (Note 4(19)) ( 215,633) ( 2) ( 47,277) ( 1)
( 962,354) ( 9) ( 866,778) ( 9)
Income from continuing operations before income tax 177,766 2 69,007 1
Income tax benefit (Note 4(10)) 46,944 - 174,228 2
Net income from continuing operations 224,710 2 243,235 3
Discontinued operations (Notes 4(10) and 4(20))
Loss from discontinued operations of Division Desktop PC, less ( 132,654) ( 1) ( 77,147) ( 1)
applicable income tax benefit of $44,131 and $25,716 in 2001 and 2000,
respectively
Gain (loss) on disposal of Division Desktop PC 8,183 - ( 72,899) ( 1)
( 124,471) ( 1) ( 150,046) ( 2)
Net income $ 100,239 1 $ 93,189 1
Earnings per share (in dollars) (Note 4(21))
From continuing operations $ 0.46 $ 0.50
From discontinued operations ( 0.25) ( 0.31)
Net $ 0.21 $ 0.19
The accompanying notes are an integral part of these financial statements.
See report of independent accountants dated February 25, 2002.
GVC CORPORATION
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
Retained Earnings
Unappropriated
Earnings Unrealized Cumulative
Capital Legal (Accumulated Loss on Translation
Long-term
Common Reserve Reserve Deficit) Investments Adjustment Treasury Total
Stock Stocks
2000
Balance at January 1, 2000 $ 7,517,974 $ 3,335,802 $ - ($5,820,475) $ - $ 141,598 $ - $5,174,899
Accumulated deficit covered - ( - 3,189,185 - - - -
by capital reserve 3,189,185)
Accumulated deficit covered (2,631,291) - - 2,631,291 - - - -
by common stock
Adjustment due to change in - 54,442 - - - - - 54,442
ownership of investee
companies
Cumulative translation - - - - - 45,744 - 45,744
adjustment
Unrealized decline in market - - - - ( 102,190) - - ( 102,190)
value of long-term
investments
Net income for 2000 - - - 93,189 - - - 93,189
Transfer of gain on disposal - 24,280 - ( 24,280) - - - -
of property, plant and
equipment to capital reserve
Balance at December 31, 2000 4,886,683 225,339 - 68,910 ( 102,190) 187,342 - 5,266,084
2001
Appropriations of earnings:
Legal reserve - - 6,891 ( 6,891) - - - -
Adjustment due to change in - ( 153,008) - - - - - ( 153,008)
ownership of
investee companies
Unrealized decline in market - - - - 15,327 - - 15,327
value of long-term
investments
Cumulative translation - - - - - 77,720 - 77,720
adjustment
Acquisition of treasury - - - - - - ( 15,623)( 15,623)
stocks
Net income for 2001 - - - 100,239 - - - 100,239
Transfer of gain on disposal - 7,993 - ( 7,993) - - - -
of property, plant
and equipment to capital
reserve
Balance at December 31, 2001 $ 4,886,683 $ 80,324 $ 6,891 $ 154,265 ($ 86,863) $265,062 ($15,623) ($5,290,739)
The accompanying notes are an integral part of these financial statements.
See report of independent accountants dated February 25, 2002.
GVC CORPORATION
STATEMENTS OF CASH FLOWS
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
For The Years Ended December 31,
2001 2000
Cash flows from operating activities
Net income $ 100,239 $ 93,189
Adjustments to reconcile net income to net cash provided by (used in ) operating
activities:
Recovery in market value of short-term investments ( 1,323) ( 84,447)
Gain on disposal of investments ( 1,041,902) ( 206,140)
(Reversal of allowance for doubtful accounts) provision for bad debts expense ( 40,224) 114,501
(Reversal of) provision for decline in market value and obsolescence of inventories ( 1,884) 124,061
Loss on scrapped inventories 81,571 -
Long-term investment loss (income) accounted for under the equity method - net 54,500 ( 381,623)
Realized long-term investment loss accounted for under the cost method 99,045 -
Gain on disposal of property, plant and equipment - net ( 11,925) ( 31,286)
Loss on scrapped property, plant and equipment 38,693 -
Provision for decline in market value of idle assets 61,500 5,073
(Gain) loss on disposal of Division Desktop PC ( 8,183) 72,899
Depreciation 223,165 221,715
Amortization 97,654 136,295
Gain on early liquidation of bonds payable ( 26,046) ( 18,713)
Unrealized exchange loss on bonds payable 237,573 182,091
Interest payable on redemption 300,386 314,586
(Increase) decrease in assets:
Notes and accounts receivable - third parties 262,879 ( 374,633)
Accounts receivable - related parties 427,081 ( 64,742)
Other receivables - third parties ( 330,370) ( 57,842)
Other receivables - related parties 136,040 2,903
Inventories 2,028,461 ( 713,152)
Other current assets ( 87,835) ( 47,593)
Deferred income tax assets - non-current 107,084 ( 236,563)
Increase (decrease) in liabilities:
Notes and accounts payable - third parties ( 928,742) 851,072
Accounts payable - related parties ( 154,059) ( 50,112)
Income tax payable - ( 35,692)
Accrued expenses ( 142,580) ( 180,614)
Advance collections from disposal of inventory of Division Desktop PC ( 457,211) 633,893
Other current liabilities 42,541 ( 35,388)
Accrued pension expense 3,150 14,962
Net cash provided by operating activities 1,069,278 248,700
Cash flows from investing activities
Decrease in short-term investments - net 35,021 537,530
Proceeds from disposal of long-term investments 2,377,717 682,940
Additions to investment in non-subsidiaries ( 12,064) ( 224,368)
Additions to investment in subsidiaries ( 99,473) ( 127,455)
Additions to property, plant and equipment ( 181,037) ( 528,939)
Proceeds from disposal of property, plant and equipment 126,566 303,944
Increase in deferred charges ( 20,005) ( 1,136)
Decrease in refundable deposits - net 1,470 3,513
Increase in certificates of deposit - net ( 466,621) ( 335,124)
Advance collections from disposal of property, plant and equipment of Division - 95,583
Desktop PC
Advance collections from disposal of long-term investments - 54,524
Net cash provided by investing activities 1,761,574 461,012
GVC CORPORATION
STATEMENTS OF CASH FLOWS (CONTINUED)
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
For The Years Ended December 31,
2001 2000
Cash flows from financing activities
(Decrease) increase in short-term bank loans - net ($ 871,404) $ 1,434,550
Decrease in commercial paper - net ( 49,867) ( 169,418)
Increase in long-term bank loans - 190,000
Repayments of bonds payable ( 1,478,198) ( 1,941,085)
Repayment of long-term bank loans ( 111,667) ( 190,235)
(Decrease) increase in deposits - in ( 1,463) 1,463
Acquisition of treasury stocks ( 15,623) -
Net cash used in financing activities ( 2,528,222) ( 674,725)
Net increase in cash 302,630 34,987
Cash at beginning of year 1,939,887 1,904,900
Cash at end of year $ 2,242,517 $ 1,939,887
Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest (excluding amount capitalized) $ 576,531 $ 620,230
Income taxes $ 18,206 $ 61,771
Investing activities which have no influence in cash flows:
Long-term investments transferred to short-term investments $ - $ 12,930
Cash paid for the acquisition of property, plant and equipment:
Total cost of property, plant and equipment acquired $ 184,015 $ 520,120
Payable - beginning of year 9,096 17,915
Payable - end of year ( 12,074) ( 9,096)
Cash paid $ 181,037 $ 528,939
The accompanying notes are an integral part of these financial statements.
See report of independent accountants dated February 25, 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
Mitsu Hc Cap 25 (LSE:80IS)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Mitsu Hc Cap 25 (LSE:80IS)
Historical Stock Chart
Von Dez 2023 bis Dez 2024
