FEDS — Annual Report 2014

Sep 2, 2014

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2014, Dec. 31, 2013, June 30, 2013 and Jan. 1, 2013

(In thousands of New Taiwan Dollars, Expect Par Value)

Code 1100 1110 1125 1147 1150 1170 1180 1200 1220 130X 1429 1412 1460 1470 11XX 1510 1523 1543 1546 1550 1600 1760 1780 1840 1975 1985 1990 15XX 1XXX Code 2100 2110 2150 2170 2180 2219 2230 2250 2313 2310 2321 2322 2399 21XX 2530 2540 2550 2640 2570 2670 25XX 2XXX 3110 3150 3100 3200 3310 3320 3350 3300 3400 3500 31XX 36XX 3XXX	Assets ASSETS Cash and cash equivalents Financial assets at fair value through profit or loss - current Available-for-sale financial assets - current Bond investments without active market-current Notes receivable Accounts receivable Accounts receivable due from related parties Other receivables Current tax assets Inventories Prepayments Prepayments for lease Noncurrent asset held for sale Other current assets Total current assets NONCURRENT ASSETS Financial assets at fair value through profit or loss - noncurrent Available-for-sale financial assets - noncurrent Financial assets measured at cost – noncurrent Bond investments without active market－ non-current Investments accounted for by equity method Property, plant and equipment Investment properties Intangible assets Deferred tax assets Prepaid pension cost Long-term prepayments for lease Other noncurrent assets Total noncurrent assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term debts Short-term notes and bills payable Notes payable Accounts payables Notes and accounts payable to related parties Other payables Current tax liabilities Provision-current Deferred revenue - current Advance receipts Bond issued – current portion Long-term borrowings – current portion Other current liabilities Total current liabilities NONCURRENT LIABILITIES Bonds issued Long-term borrowings Provision-noncurrent Accrued pension liabilities Deferred tax liabilities Other noncurrent liabilities Total noncurrent liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share Capital Ordinary share Stock dividend to be distributed Total capital stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury stock Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS Total equity TOTAL		June 30,2014 Amount ％ $ 8,560,045 8 230,766 - 490,482 - 744,838 1 4,839 - 581,389 1 84,986 - 1,458,417 1 245,777 - 2,633,044 3 870,728 1 322,384 - 111 - 68,487 - 16,296,293 15 - - 5,096,251 5 774,210 1 534,896 - 9,387,954 9 51,861,561 48 2,730,495 3 7,711,343 7 935,717 1 219,638 - 9,340,570 9 1,934,974 2 90,527,609 85 $ 106,823,902 100 $ 7,851,703 7 4,054,138 4 49,074 - 12,292,228 12 66,915 - 6,420,122 6 318,410 - 4,135 - 116,083 - 8,046,997 8 - - 2,444,733 2 226,921 - 41,891,459 39 1,991,631 2 21,977,499 21 31,083 - 543,566 - 1,579,312 1 2,716,999 3 28,840,090 27 70,731,549 66 14,109,761 13 282,195 - 14,391,956 13 3,498,174 3 2,575,473 3 2,461,168 2 2,130,990 2 7,167,631 7 3,727,302 4 97,110 ) - 28,687,953 27 7,404,400 7 36,092,353 34 $ 106,823,902 100		Dec. 31,2013 Amount ％ $ 13,221,405 12 239,974 - 552,555 - 437,497 - 28,119 - 766,445 1 57,302 - 1,779,487 2 418,064 - 2,976,244 3 771,167 1 319,489 - 377 - 83,987 - 21,652,112 19 - - 4,986,339 4 776,374 1 521,897 1 9,050,368 8 52,166,888 46 3,070,495 3 7,715,184 7 940,225 1 222,285 - 9,464,677 8 1,920,123 2 90,834,855 81 $ 112,486,967 100 $ 7,462,340 7 3,047,306 3 159,194 - 17,693,401 16 151,909 - 5,252,331 5 401,874 - 4,135 - 101,136 - 7,720,500 7 2,493,512 2 1,445,159 1 252,891 - 46,185,688 41 1,990,702 2 21,841,434 19 30,483 - 547,479 1 1,608,841 1 2,841,682 3 28,860,621 26 75,046,309 67 14,109,761 13 - - 14,109,761 13 3,498,174 3 2,358,917 2 1,931,285 2 4,095,216 3 8,385,418 7 3,659,643 3 97,110 ) - 29,555,886 26 7,884,772 7 37,440,658 33 $ 112,486,967 100		June 30,2013 Amount ％ $ 8,184,635 8 372,908 - 524,236 1 355,678 - 13,774 - 1,180,043 1 36,090 - 1,688,730 2 522,039 - 2,603,699 2 601,307 1 319,375 - - - 84,840 - 16,487,354 15 1,017,199 1 4,652,078 4 776,313 1 548,884 1 9,052,068 8 52,390,105 48 3,043,814 3 7,720,553 7 963,723 1 219,960 - 9,654,543 9 2,025,663 2 92,064,903 85 $ 108,552,257 100 $ 8,399,110 8 3,691,579 3 48,102 - 13,477,804 13 82,141 - 7,961,984 7 178,836 - 4,135 - 86,065 - 7,518,615 7 3,674,149 3 984,000 1 223,738 - 46,330,258 42 1,000,000 1 20,962,255 19 30,348 - 538,383 1 1,567,112 1 2,774,846 3 26,872,944 25 73,203,202 67 13,698,797 13 410,964 - 14,109,761 13 3,498,174 3 2,358,917 2 1,931,285 2 2,900,584 3 7,190,786 7 3,371,766 3 97,110 ) - 28,073,377 26 7,275,678 7 35,349,055 33 $ 108,552,257 100		Jan. 1,2013	Jan. 1,2013
			Amount $ 8,560,045 230,766 490,482 744,838 4,839 581,389 84,986 1,458,417 245,777 2,633,044 870,728 322,384 111 68,487 16,296,293 - 5,096,251 774,210 534,896 9,387,954 51,861,561 2,730,495 7,711,343 935,717 219,638 9,340,570 1,934,974 90,527,609 $ 106,823,902 $ 7,851,703 4,054,138 49,074 12,292,228 66,915 6,420,122 318,410 4,135 116,083 8,046,997 - 2,444,733 226,921 41,891,459 1,991,631 21,977,499 31,083 543,566 1,579,312 2,716,999 28,840,090 70,731,549 14,109,761 282,195 14,391,956 3,498,174 2,575,473 2,461,168 2,130,990 7,167,631 3,727,302 97,110 ) 28,687,953 7,404,400 36,092,353 $ 106,823,902		Amount $ 13,221,405 239,974 552,555 437,497 28,119 766,445 57,302 1,779,487 418,064 2,976,244 771,167 319,489 377 83,987 21,652,112 - 4,986,339 776,374 521,897 9,050,368 52,166,888 3,070,495 7,715,184 940,225 222,285 9,464,677 1,920,123 90,834,855 $ 112,486,967 $ 7,462,340 3,047,306 159,194 17,693,401 151,909 5,252,331 401,874 4,135 101,136 7,720,500 2,493,512 1,445,159 252,891 46,185,688 1,990,702 21,841,434 30,483 547,479 1,608,841 2,841,682 28,860,621 75,046,309 14,109,761 - 14,109,761 3,498,174 2,358,917 1,931,285 4,095,216 8,385,418 3,659,643 97,110 ) 29,555,886 7,884,772 37,440,658 $ 112,486,967		Amount $ 8,184,635 372,908 524,236 355,678 13,774 1,180,043 36,090 1,688,730 522,039 2,603,699 601,307 319,375 - 84,840 16,487,354 1,017,199 4,652,078 776,313 548,884 9,052,068 52,390,105 3,043,814 7,720,553 963,723 219,960 9,654,543 2,025,663 92,064,903 $ 108,552,257 $ 8,399,110 3,691,579 48,102 13,477,804 82,141 7,961,984 178,836 4,135 86,065 7,518,615 3,674,149 984,000 223,738 46,330,258 1,000,000 20,962,255 30,348 538,383 1,567,112 2,774,846 26,872,944 73,203,202 13,698,797 410,964 14,109,761 3,498,174 2,358,917 1,931,285 2,900,584 7,190,786 3,371,766 97,110 ) 28,073,377 7,275,678 35,349,055 $ 108,552,257		Amount $ 16,794,103 361,327 511,192 1,008,193 31,195 1,470,752 50,977 492,525 291,016 3,160,935 846,206 318,565 - 70,694 25,407,680 1,013,913 5,468,512 718,583 632,667 8,811,079 52,946,768 3,043,814 7,711,555 1,131,574 222,666 9,837,349 1,902,572 93,441,052 $ 118,848,732 $ 9,613,446 4,648,862 198,522 18,687,359 170,962 8,439,193 563,223 16,351 63,770 7,449,114 1,200,000 1,600,000 168,630 52,819,432 3,454,937 21,992,207 30,213 545,253 1,549,219 2,710,010 30,281,839 83,101,271 13,698,797 - 13,698,797 3,498,174 2,189,631 1,931,285 3,596,568 7,717,484 3,773,795 97,110 ) 28,591,140 7,156,321 35,747,461 $ 118,848,732	％
		(		(		(		(		14 - 1 1 - 1 - - - 3 1 - - - 21 1 5 1 - 7 45 3 6 1 - 8 2 79 100 8 4 - 16 - 7 1 - - 6 1 1 - 44 3 19 - 1 1 2 26 70 12 - 12 3 2 1 3 6 3 - 24 6 30 100

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

From Apr. 1 to June 30, 2014 and 2013, and Year ended June 30, 2014 and 2013

(In thousands of New Taiwan Dollars, Expect Par Value)

C o d e 4000 REVENUES 5000 COSTS 5900 GROSS PROFIT OPERATING EXPENSES 6100 Selling 6200 General and administrative 6000 Total operating expenses 6900 OPERATING INCOME NONOPERATING INCOME AND EXPENSES 7190 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit (loss) of associates accounted for using equity method 7000 Total Non-operating income and expenses 7900 INCOME BEFORE INCOME TAX 7950 INCOME TAX EXPENSE 8200 NET INCOME OTHER COMPREHENSIVE INCOME 8310 Other comprehensive income, before tax, exchange differences on translation 8325 Other comprehensive income, before tax, available-for-sale financial assets 8370 Share of other comprehensive income of associates accounted for using equity method 8300 Total other comprehensive income, net 8500 COMPREHENSIVE INCOME NET INCOME ATTRIBUTED TO： 8610 Owners of parent 8620 Non-controlling interests 8600 CONPREHENSIVE INCOME CONTRIBUTED TO： 8710 Owners of parent 8720 Non-controlling interests 8700 EARNINGS PER SHARE 9750 Basic 9850 Diluted	From Apr. 1 to June 30, 2014 Amount ％ $10,604,931 100 5,243,206 50 5,361,725 50 277,014 2 4,520,460 43 4,797,474 45 564,251 5 45,457 - 2,759 - ( 111,017 ) ( 1 ) 83,147 1 20,346 - 584,597 5 148,451 1 436,146 4 ( 27,345 ) - 261,817 3 41,801 - 276,273 3 $ 712,419 7 $ 300,362 3 135,784 1 $ 436,146 4 $ 583,787 6 128,632 1 $ 712,419 7 $ 0.21 $ 0.21	From Apr. 1 to June 30, 2013 Amount ％ $10,917,147 100 5,591,281 51 5,325,866 49 326,094 3 4,681,335 43 5,007,429 46 318,437 3 36,633 - 114,310 1 ( 145,278 ) ( 1 ) 113,249 1 118,914 1 437,351 4 155,228 1 282,123 3 36,287 - 108,740 1 88,461 1 233,488 2 $ 515,611 5 $ 201,945 2 80,178 1 $ 282,123 3 $ 424,263 4 91,348 1 $ 515,611 5 $ 0.14 $ 0.14

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended June 30, 2014 and 2013

(In thousands of New Taiwan Dollars)

C o d e CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES A00010 INCOME BEFORE INCOME TAX A20000 Adjustments to reconcile profit(loss) A20100 Depreciation expense A20200 Amortization expense A20300 Gain on reversal of losses on doubtful debts A20400 Net loss (gain) on financial assets or liabilities at fair value through profit or loss A20900 Finance costs A23000 Loss (gain) on disposal of non-current assets classified as held for sale A23500 Impairment loss on financial assets A29900 Reversal of provisions A29900 Amortization of prepayments A29900 Amortization of prepayments for lease A29900 Reversal unrealized purchase discounts A29900 Reversal of deferred revenue A22300 Share of loss (profit) of associates accounted for using equity method A21200 Interest income A21300 Dividend income A22500 Loss (gain) on disposal of property, plant and equipment, net A23100 Gains on disposals of investments A23700 Loss for market price decline and obsolete and slow-moving inventories A30000 Net changes in operating assets and liabilities A31110 Financial assets held for trading A31130 Notes receivable A31150 Accounts receivable A31160 Notes and accounts receivable due from related parties （Continued）	Year ended June 30,2014 $ 1,354,431 1,455,085 12,763 ( 2,658 ) 2,451 223,063 ( 316 ) 1,027 - 7,032 160,298 ( 15,700 ) ( 101,136 ) ( 111,031 ) ( 49,408 ) ( 21,702 ) 11,778 - 16,120 6,757 23,280 185,042 ( 27,684 )	Year ended June 30,2013
		$ 1,581,406 1,406,605 11,677 ( 2,735 ) ( 14,867 ) 300,949 - - ( 12,216 ) 6,962 159,511 ( 12,500 ) ( 63,770 ) ( 129,792 ) ( 71,419 ) ( 6,733 ) 19,603 ( 379,826 ) 17,232 - 17,421 284,428 14,887

（Continued） C o d e A31180 Other receivable A31200 Inventories A31230 Prepayments A31240 Other current assets A31990 Prepaid pension costs A31990 Long-term prepayments for lease A32130 Notes payable A32150 Accounts payable A32160 Notes and accounts payable to related parties A32180 Other payables A32210 Advance receipts A32210 Deferred revenue A32240 Accrued pension liabilities A32230 Other current liabilities A33000 Cash inflow (outflow) generated from operations A33300 Interests paid A33100 Interests received A33500 Income tax returned A33500 Income taxes paid AAAA Net cash flows from (used in) operating activities CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES B00400 Proceeds from disposal of available-for-sale financial assets B00600 Decrease (increase) in bond investments without active market B01200 Acquisition of financial assets at cost B01800 Acquisition of investments accounted for using equity method B02600 Proceeds from disposal of non-current assets classified as held for sale B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B04100 Decrease (increase) in other receivable B04500 Acquisition of intangible assets B06700 Decrease (increase) in other non-current assets B07600 Dividends received BBBB Net cash flows from (used in) investing activities	Year ended June 30,2014 173,312 342,780 ( 100,207 ) 15,500 2,647 ( 71,369 ) ( 110,120 ) ( 5,401,173 ) ( 84,994 ) ( 1,079,969 ) 461,768 116,083 ( 3,913 ) ( 25,970 ) ( 2,636,133 ) ( 223,453 ) 63,511 210,212 ( 533,101 ) ( 3,118,964 ) - ( 320,340 ) - ( 360,000 ) 582 ( 1,038,575 ) 133 296,016 ( 9,036 ) ( 7,714 ) 1 ( 1,438,933 )	Year ended June 30,2013
		192,764 552,504 245,330 ( 14,146 ) 2,706 - ( 150,420 ) ( 5,209,555 ) ( 88,821 ) ( 441,549 ) 261,161 86,065 ( 6,870 ) 55,108 ( 1,388,900 ) ( 235,615 ) 58,267 - ( 770,985 ) ( 2,337,233 ) 701,854 736,298 ( 50,000 ) ( 90,000 ) - ( 2,085,309 ) 3,411 ( 1,254,324 ) ( 19,612 ) ( 131,626 ) 1 ( 2,189,307 )

（ Continued ）

（ Continued ）

C o d e Cash flows from (used in) financing activities C00100 Increase in short-term loans C00200 Decrease in short-term loans C00500 Increase in short-term notes and bills payable C00600 Decrease in short-term notes and bills payable C01300 Repayments of bonds C01600 Proceeds from long-term debt C01700 Repayment of long-term debt C04300 Increase in other non-current liabilities C04500 Dividends paid by parent company C05800 Dividends paid to non-controlling interests CCCC Net cash flows from (used in) financing activities DDDDEffect of exchange rate changes on cash and cash equivalents EEEE Net increase (decrease) in cash and cash equivalents E00100Cash and cash equivalents at beginning of period E00200Cash and cash equivalents at end of period	Year ended June 30,2014 35,871,617 ( 35,484,841 ) 11,297,924 ( 10,291,092 ) ( 2,500,000 ) 23,659,639 ( 22,524,000 ) ( 8,823 ) ( 21 ) ( 122,387 ) ( 101,984 ) ( 1,479 ) ( 4,661,360 ) 13,221,405 $ 8,560,045	Year ended June 30,2013
		25,901,114 ( 27,191,932 ) 11,914,066 ( 12,871,349 ) - 19,950,000 ( 21,595,952 ) 59,992 ( 5 ) ( 197,462 ) ( 4,031,528 ) ( 51,400 ) ( 8,609,468 ) 16,794,103 $ 8,184,635

(Concluded)