BALANCE SHEETS
MARCH 31, 2003 AND 2002
(In Thousands of New Taiwan Dollars)
2003.03.31 / 2002.03.31
ASSETS
CURRENT ASSETS:
Cash and cash equivalents / $ 136,418 / $ 114,615
Short-term investments, net / 512,847 / 868,521
Notes receivable, net / 113,480 / 61,334
Notes receivable – related parties, net / 864 / 133
Accounts receivable, net / 313,334 / 260,666
Accounts receivable – related parties, net / 12,144 / 14,178
Other receivables / 54,625 / 144,174
Other receivable – related parties, net / 13,187 / 1,007
Other financial assets / 322,000 / 367,944
Inventories / 2,818,446 / 2,619,583
Prepaid expenses / 23,618 / 34,179
Other prepayments / 183,001 / 114,278
Deferred tax assets-current / 47,404 / 72,615
Other current assets / 5,396 / 508,186
Total current assets / 4,556,764 / 5,181,413
LONG-TERM INVESTMENTS / 6,768,423 / 7,167,957
PROPERTY, PLANT AND EQUIPMENT, NET / 6,183,395 / 5,716,452
INTANGIBLE ASSETS
Deferred pension cost / 98,005 / 89,662
OTHER ASSETS:
Idle assets / 5,994 / 13,739
Refundable deposit / 28,708 / 29,035
Deferred charges / 69,910 / 92,216
Long-term notes receivable / 224,250 / 448,500
Deferred income tax assets / 137,219 / 136,242
Other assets - other / 66,583 / 66,583
Total other assets / 532,664 / 786,315
TOTAL / $ 18,139,251 / $ 18,941,799
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings / $ 2,569,859 / $ 2,524,098
Short-term notes and bills payable / 1,215,275 / 1,355,288
Notes payable / 87,878 / 79,318
Notes payable – related parties / 5,082 / 3,572
Accounts payable / 229,892 / 249,940
Accounts payable – related parties / 930,771 / 836,592
Income tax payable / 36,510
Accrued expenses / 214,086 / 232,581
Other payables / 10,894 / 9,755
Advance receipts / 115,241 / 50,568
Long-term liabilities - current portion / 1,385,471 / 1,669,961
Other current liabilities / 31,722 / 31,113
Total current liabilities / 6,796,171 / 7,079,296
LONG-TERM LIABILITIES:
Bonds payable / 600,000 / 800,000
Long-term borrowings / 4,470,988 / 4,227,526
Total long-term liabilities / 5,070,988 / 5,027,526
ACCRUED LIABILITIES
Estimated accrued land value increment tax payable / 29,805 / 157,758
OTHER LIABILITIES:
Accrued pension liability / 135,509 / 116,968
Guarantee deposits received / 498,943 / 471,010
Other liabilities – other / 1,953 / 1,977
Total other liabilities / 636,405 / 589,955
Total liabilities / 12,533,369 / 12,854,535
STOCKHOLDERS’ EQUITY:
Capital / 7,880,511 / 7,880,511
Capital surplus / 498,311 / 359,979
Retained earnings-unapprpriated (Accumulated deficit) / (571,040 / ) / (26,600 / )
Unrealized valuation losses on long-term equity investments / (524,010 / ) / (493,308 / )
Cumulative translation adjustments / 239,257 / 256,450
Treasury stock / (1,917,147 / ) / (1,889,768 / )
Total stockholders’ equity / 5,605,882 / 6,087,264
TOTAL / $ 18,139,251 / $ 18,941,799
.RUENTEX INDUSTRIES LIMITED
STATEMENTS OF INCOME
YEARS ENDED MARCH 31, 2003 AND 2002
(In Thousands of New Taiwan Dollars, Except for Earnings Per Share)
2003.03.31 / 2002.03.31
OPERATING REVENUES:
Sales / $ 1,945,890 / $ 1,972,568
Less:
Sales returns / (21,936 / ) / (24,394 / )
Sales discounts and allowances / (7,643 / ) / (2,966 / )
Rental income / 40,905 / 30,155
Construction income / - / -
Processing fees income / 301 / 276
Other operating income / 49,468 / 32,661
Net operating revenues / 2,006,985 / 2,008,300
OPERATING COSTS:
Cost of goods sold / 1,629,863 / 1,680,352
Cost of rental sales / 6,637 / 4,580
Cost of construction sales / - / -
Total operating costs / 1,636,500 / 1,684,932
GROSS INCOME FROM OPERATIONS / 370,485 / 323,368
REALIZED GAIN ON AFFILIATE ACCOUNTS / 5 / 5
OPERATING EXPENSES:
Selling expenses / 263,700 / 242,613
General and administrative expenses / 55,741 / 54,943
INCOME FROM OPERATIONS / 51,049 / 25,817
NON-OPERATING INCOME:
Interest income / 8,226 / 26,997
Gains on disposal of property, plant and equipment / 2 / -
Gains on sale of investments / 5,559 / 29,508
Foreign exchange gains / 945 / -
Income from sale of scrap and wastes / 1,769 / 1,277
Gains on market price recovery of short-term investment / 3,682 / 118,801
Gain on reversal of bad debts / 347 / 159
Gains from price recovery of inventory / 11,000 / 94,280
Miscellaneous income / 17,321 / 64,653
Total non-operating income / 48,851 / 335,675
NON-OPERATING EXPENSES:
Interest expense / 121,259 / 151,172
Investment Losses / 91,588 / 67,284
Losses on disposal of property, plant and equipment / 10,392 / 7,232
Losses on sale of investments / 17 / 6
Losses on physical inventory / 6,185 / -
Losses on exchange / - / 128
Losses on idle assets depreciation and valuation loss / 1,291 / 1,108
Miscellaneous disbursements / 7,292 / 4,803
Total non-operating expenses / 238,024 / 231,733
CONTINUING OPERATIONS’ INCOME (LOSS) BEFORE TAX / (138,124 / ) / 129,759
INCOME TAX GAIN / (3,329 / ) / (28,470 / )
CONTINUING OPERATIONS’ INCOME (LOSS) AFTER TAX / (134,795 / ) / 101,289
NET INCOME (LOSS) / $ (134,795 / ) / $ 101,289
SIMPLE EARNINGS (LOSS) PER SHARE (Note 27) -
Net income (loss) / $(0.20 / ) / $0.15
PROFORMA DATA AS SHARES OF THE COMPANY HELD BY SUBSIDIARY TREATED AS NON-TREASURY-STOCK
Net income (loss) / $(0.31 / ) / $(0.05 / )
RUENTEX INDUSTRIES LIMITED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
YEARS ENDED MARCH 31, 2003 AND 2002
(In Thousands of New Taiwan Dollars)
Accumulated Earnings (Deficit) / Change of EquityCapital Stock / Capital Surplus / Unappropriated Earnings
(Deficit) / Cumulative Translation Adjustments / Unrealized Valuation Losses on Long-Term Equity Investments / Treasury Stock / Total Stockholders’ Equity
BALANCE, JANUARY 1, 2002 / $7,880,511 / $ 359,979 / $ (127,889 / ) / $ 255,664 / $ (467,738 / ) / $ - / $ 7,900,527
Treasury stock transactions / (1,889,768 / ) / (1,889,768 / )
Prior periods adjustments / 786 / 786
Unrealized valuation losses on long-term equity investment / (25,570 / ) / (25,570 / )
Net income after tax for the year ended March 31 ,2002 / 101,289 / 101,289
BALANCE, JANUARY 1, 2002 / $7,880,511 / $ 359,979 / $ (26,600 / ) / $ 256,450 / $ (493,308 / ) / $ (1,889,768 / ) / $ 6,087,264
BALANCE, MARCH 31, 2003 / 7,880,511 / 517,398 / (436,245 / ) / 239,257 / (349,730 / ) / (1,917,147 / ) / 5,934,044
Effect on capital surplus of change in ownership percentage / (19,087 / ) / (19,087 / )
Unrealized valuation losses on long-term equity investment / (174,280 / ) / (174,280 / )
Net loss after tax for the year ended March 31 of 2003 / (134,795 / ) / (134,795 / )
BALANCE, MARCH 31, 2003 / $ 7,880,511 / $ 498,311 / $ (571,040 / ) / $ 239,257 / $ (524,010 / ) / $ (1,917,147 / ) / $ 5,605,882
RUENTEX INDUSTRIES LIMITED
STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 2003 AND 2002
(In Thousands of New Taiwan Dollars)
2003.03.31 / 2002.03.31
OPERATING ACTIVITIES:
Net income (loss) / $ (134,795 / ) / $ 101,289
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Bad debts / (347 / ) / (159 / )
Depreciation expense / 74,842 / 71,160
Amortization expense / 9,447 / 9,516
Transfer of deferred assets to expense / 8 / -
Gains on sale of long-term investments / (5,559 / ) / (29,508 / )
Losses on sale of long-term investments / 17 / 6
Gains on market price recovery of short-term investment / (3,682 / ) / (118,801 / )
Gains on market price recovery of inventory / (11,000 / ) / (94,280 / )
Losses on disposal of assets / 10,392 / 7,232
Gains on disposal of assets / (2 / ) / -
Abandonment losses on assets / 69 / 4
Realized gross profits / (5 / ) / (5 / )
Amount of income under equity method exceeding cash dividends received from the investee / 91,588 / 67,284
Amortization of premium on long-term investment / - / 1,395
Decrease (increase) in notes receivable / (13,592 / ) / 13,750
Decrease (increase) in notes receivable – related parties / (827 / ) / 219
Decrease (increase) in accounts receivable / 23,553 / (5,684 / )
Decrease (increase) in accounts receivable –related parties / (1,544 / ) / 2,451
Decrease (increase) in other receivable / 26,861 / (35,559 / )
Decrease in other receivable –related parties / 2,175 / 6,667
Increase in inventories / (203,940 / ) / (9,342 / )
Increase in prepaid expenses / (4,124 / ) / (12,786 / )
Decrease (increase) in Other prepayments / 9,249 / (14,777 / )
Decrease in deferred income tax assets - current / 2,192 / 2,972
Decrease (increase) in other current assets / 1,982 / (13,665 / )
Increase in overdue accounts receivable / (190 / ) / (83 / )
Increase in deferred income tax assets - noncurrent / (7,482 / ) / (5,069 / )
Increase in notes payable / (40,687 / ) / (48,040 / )
Increase in notes payable – related parties / (1,007 / ) / (1,873 / )
Decrease (increase) in accounts payable / (5,620 / ) / 20,017
Decrease (increase) in accounts payable –related parties / (3,032 / ) / 67,434
Decrease in income tax payable / - / 36,510
Increase in accrued expenses / (42,594 / ) / (58,154 / )
Increase in other payables / (3,390 / ) / (639 / )
Increase in other payables – related parties / (13,376 / ) / -
Decrease in advance receipts / 67,162 / 16,788
Increase in other current liabilities / (27,203 / ) / (11,898 / )
Decrease in accrued pension liabilities / 485 / -
Net cash provided by (used in) operating activities / (203,976 / ) / (35,628 / )
INVESTING ACTIVITIES:
Decrease (increase) in pledged CDs / 3,455 / (19,360 / )
Proceeds from sale of short-term investments / 349,455 / 189,533
Decrease in short-term investment / (326,034 / ) / (79,514 / )
Decrease in long-term investment / (292,185 / ) / (35,050 / )
Proceeds from disposal of property, plant and equipment / 218 / 355
Increase acquisitions of property, plant and equipment / (20,658 / ) / (8,556 / )
Proceeds from disposal of idle assets / 3,263 / 200
Decrease (increase) in guarantee deposits paid / (51 / ) / 303
Increase in deferred charges / (1,425 / ) / (4,135 / )
Decrease in long-term Notes receivable and Accounts receivable / 224,270 / -
Decrease in other assets - others / - / 11,754
Net cash provided by investing activities / (59,692 / ) / 55,530
FINANCING ACTIVITIES:
Increase in short-term borrowings / 370,520 / 240,932
Increase (decrease) in short-term notes and bills payable / (106,046 / ) / 15,543
Decrease increase in long-term borrowings / (23,908 / ) / (307,229 / )
Increase in guarantee deposits received / 5,748 / 6,472
Increase other liabilities / - / 2
Cash dividends paid / (12 / ) / (98
Net cash used in financing activities / 246,302 / (44,378 / )
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS / (17,366 / ) / (24,476 / )
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR / 153,784 / 139,091
CASH AND CASH EQUIVALENTS, END OF YEAR ENDED MARCH 31, 2003 / $ 136,418 / $ 114,615
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interests (excluding capitalized interest) / $ 108,226 / $ 133,244
Income tax / $ 5,293 / $ 124
Current portion of long-term liabilities / $ 1,385,471 / $ 1,669,961