FEDS — Annual Report 2015

Mar 15, 2016

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

Sep. 30, 2015, Dec. 31, 2014, Sep. 30, 2014 and Jan. 1, 2014

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

Code 1100 1110 1125 1147 1150 1170 1180 1200 1220 130X 1429 1460 1470 11XX 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 3200 3310 3320 3350 3300 3400 3500 31XX 36XX 3XXX	Assets CURRENT 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 Noncurrent asset held for sale Other current assets Total current assets NONCURRENT ASSETS 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 Net defined benefit asset 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 Net defined benefit liability Deferred tax liabilities Other noncurrent liabilities Total noncurrent liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share Capital Ordinary share 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		Sep. 30, 2015 (Reviewed) Amount ％ $ 5,817,019 6 474,833 1 471,443 1 347,492 - 10,003 - 1,163,351 1 291,934 - 1,512,459 1 47,354 - 3,387,433 3 1,022,973 1 - - 64,159 - 14,610,453 14 4,293,150 4 612,090 1 127,000 - 9,245,224 9 46,080,597 44 9,665,704 9 7,229,372 7 894,903 1 179,520 - 9,281,989 9 1,960,860 2 89,570,409 86 $ 104,180,862 100 $ 6,982,405 7 2,754,608 3 438,567 - 12,250,329 12 46,795 - 4,646,139 4 94,393 - 2,967 - 135,961 - 8,215,001 8 - - 2,200,000 2 365,628 - 38,132,793 36 993,954 1 22,888,293 22 30,989 - 558,037 - 1,788,353 2 2,795,900 3 29,055,526 28 67,188,319 64 14,391,956 14 3,498,174 3 2,728,379 3 2,461,168 2 2,307,262 2 7,496,809 7 4,600,074 5 273,365) - 29,713,648 29 7,278,895 7 36,992,543 36 $ 104,180,862 100	(	Dec. 31, 2014 A u d i t e d f o r a p p l i c a b i l i t y a n d a dju s t e d r e t r o spe c t i v e ly ) Amount ％ $ 10,952,918 10 290,895 - 487,231 - 1,204,317 1 2,410 - 527,659 1 191,931 - 1,508,732 1 200,615 - 2,870,727 3 975,457 1 115 - 102,260 - 19,315,267 17 4,989,668 4 783,652 1 125,000 - 9,546,534 9 47,426,385 43 9,667,344 9 7,226,592 6 926,612 1 185,782 - 9,472,460 8 1,954,939 2 92,304,968 83 $ 111,620,235 100 $ 6,674,285 6 2,991,683 3 63,303 - 17,601,054 16 153,238 - 5,495,103 5 512,116 - 4,135 - 65,656 - 7,829,288 7 1,000,000 1 1,764,429 2 265,157 - 44,419,447 40 992,560 1 21,548,341 19 31,222 - 563,292 - 1,729,061 2 2,878,845 3 27,743,321 25 72,162,768 65 14,391,956 13 3,498,252 3 2,575,473 2 2,461,168 2 2,936,463 3 7,973,104 7 5,900,851 5 97,110) - 31,667,053 28 7,790,414 7 39,457,467 35 $ 111,620,235 100	Sep. 30, 2014 ( R e v i e w e d f o r a p p l i c a b i l i t y a n d a dju s t e d r e t r o spe c t i v e ly ) Amount ％ $ 4,990,052 5 276,840 - 474,363 1 1,204,190 1 19,394 - 434,378 1 135,292 - 1,320,031 1 246,174 - 3,100,463 3 1,343,804 1 113 - 62,933 - 13,608,027 13 4,942,040 4 776,667 1 436,897 - 9,258,206 9 47,861,828 45 9,689,275 9 7,723,849 7 943,706 1 216,634 - 9,252,179 9 1,946,701 2 93,047,982 87 $ 106,656,009 100 $ 10,714,741 10 3,768,892 4 34,019 - 12,398,501 12 66,875 - 4,973,206 5 234,108 - 4,135 - 165,429 - 8,321,753 8 1,000,000 1 2,444,361 2 258,825 - 44,384,845 42 992,095 1 17,828,000 17 31,152 - 531,366 - 1,714,468 2 2,760,424 2 23,857,505 22 68,242,350 64 14,391,956 14 3,498,174 3 2,575,473 3 2,461,168 2 2,474,942 2 7,511,583 7 5,655,307 5 ( 97,110) - 30,959,910 29 7,453,749 7 38,413,659 36 $ 106,656,009 100	Sep. 30, 2014 ( R e v i e w e d f o r a p p l i c a b i l i t y a n d a dju s t e d r e t r o spe c t i v e ly ) Amount ％ $ 4,990,052 5 276,840 - 474,363 1 1,204,190 1 19,394 - 434,378 1 135,292 - 1,320,031 1 246,174 - 3,100,463 3 1,343,804 1 113 - 62,933 - 13,608,027 13 4,942,040 4 776,667 1 436,897 - 9,258,206 9 47,861,828 45 9,689,275 9 7,723,849 7 943,706 1 216,634 - 9,252,179 9 1,946,701 2 93,047,982 87 $ 106,656,009 100 $ 10,714,741 10 3,768,892 4 34,019 - 12,398,501 12 66,875 - 4,973,206 5 234,108 - 4,135 - 165,429 - 8,321,753 8 1,000,000 1 2,444,361 2 258,825 - 44,384,845 42 992,095 1 17,828,000 17 31,152 - 531,366 - 1,714,468 2 2,760,424 2 23,857,505 22 68,242,350 64 14,391,956 14 3,498,174 3 2,575,473 3 2,461,168 2 2,474,942 2 7,511,583 7 5,655,307 5 ( 97,110) - 30,959,910 29 7,453,749 7 38,413,659 36 $ 106,656,009 100	(	Jan. 1, 2014 A u d i t e d f o r a p p l i c a b i l i t y a n d a dju s t e d r e t r o spe c t i v e ly )	Jan. 1, 2014 A u d i t e d f o r a p p l i c a b i l i t y a n d a dju s t e d r e t r o spe c t i v e ly )
			Amount $ 5,817,019 474,833 471,443 347,492 10,003 1,163,351 291,934 1,512,459 47,354 3,387,433 1,022,973 - 64,159 14,610,453 4,293,150 612,090 127,000 9,245,224 46,080,597 9,665,704 7,229,372 894,903 179,520 9,281,989 1,960,860 89,570,409 $ 104,180,862 $ 6,982,405 2,754,608 438,567 12,250,329 46,795 4,646,139 94,393 2,967 135,961 8,215,001 - 2,200,000 365,628 38,132,793 993,954 22,888,293 30,989 558,037 1,788,353 2,795,900 29,055,526 67,188,319 14,391,956 3,498,174 2,728,379 2,461,168 2,307,262 7,496,809 4,600,074 273,365) 29,713,648 7,278,895 36,992,543 $ 104,180,862		Amount $ 10,952,918 290,895 487,231 1,204,317 2,410 527,659 191,931 1,508,732 200,615 2,870,727 975,457 115 102,260 19,315,267 4,989,668 783,652 125,000 9,546,534 47,426,385 9,667,344 7,226,592 926,612 185,782 9,472,460 1,954,939 92,304,968 $ 111,620,235 $ 6,674,285 2,991,683 63,303 17,601,054 153,238 5,495,103 512,116 4,135 65,656 7,829,288 1,000,000 1,764,429 265,157 44,419,447 992,560 21,548,341 31,222 563,292 1,729,061 2,878,845 27,743,321 72,162,768 14,391,956 3,498,252 2,575,473 2,461,168 2,936,463 7,973,104 5,900,851 97,110) 31,667,053 7,790,414 39,457,467 $ 111,620,235		Amount $ 4,990,052 276,840 474,363 1,204,190 19,394 434,378 135,292 1,320,031 246,174 3,100,463 1,343,804 113 62,933 13,608,027 4,942,040 776,667 436,897 9,258,206 47,861,828 9,689,275 7,723,849 943,706 216,634 9,252,179 1,946,701 93,047,982 $ 106,656,009 $ 10,714,741 3,768,892 34,019 12,398,501 66,875 4,973,206 234,108 4,135 165,429 8,321,753 1,000,000 2,444,361 258,825 44,384,845 992,095 17,828,000 31,152 531,366 1,714,468 2,760,424 23,857,505 68,242,350 14,391,956 3,498,174 2,575,473 2,461,168 2,474,942 7,511,583 5,655,307 97,110) 30,959,910 7,453,749 38,413,659 $ 106,656,009		Amount $ 13,221,405 239,974 552,555 437,497 28,119 766,445 57,302 1,779,487 418,064 2,976,244 1,090,656 377 83,987 21,652,112 4,986,339 776,374 521,897 9,050,368 52,166,888 3,070,495 7,715,184 940,225 222,615 9,464,677 1,920,123 90,835,185 $ 112,487,297 $ 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 30,483 535,105 1,608,841 2,841,682 28,848,247 75,033,935 14,109,761 3,498,174 2,358,917 1,931,285 4,107,920 8,398,122 3,659,643 97,110) 29,568,590 7,884,772 37,453,362 $ 112,487,297	％
		(		(		(		(		12 - - - - 1 - 2 - 3 1 - - 19 4 1 1 8 46 3 7 1 - 8 2 81 100 7 3 - 16 - 5 - - - 7 2 1 - 41 2 19 - 1 1 3 26 67 13 3 2 2 3 7 3 - 26 7 33 100

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

From Jul. 1 to Sep. 30, 2015 and 2014, and Year ended Sep. 30, 2015 and 2014

(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 Components of other comprehensive income that will not be reclassified to profit or loss 8312 Gains (losses) on revaluation 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Other comprehensive income, before tax, exchange differences on translation 8362 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 Jul. 1 to Sep. 30, 2015 Amount ％ $ 10,261,623 100 5,152,578 50 5,109,045 50 182,546 2 4,688,024 45 4,870,570 47 238,475 3 313,522 3 ( 47,042 ) ( 1 ) ( 121,440 ) ( 1 ) 476,139 5 621,179 6 859,654 9 168,407 2 691,247 7 - - - - 2,770 - ( 548,556 ) ( 6 ) ( 547,361) ( 5) ( 1,093,147) (11) ($ 401,900) ( 4) $ 727,758 7 ( 36,511) - $ 691,247 7 ( $ 358,525 ) ( 4 ) ( 43,375) - ($ 401,900) ( 4) $ 0.51 $ 0.51	From Jul. 1 to Sep. 30, 2015 Amount ％ $ 10,261,623 100 5,152,578 50 5,109,045 50 182,546 2 4,688,024 45 4,870,570 47 238,475 3 313,522 3 ( 47,042 ) ( 1 ) ( 121,440 ) ( 1 ) 476,139 5 621,179 6 859,654 9 168,407 2 691,247 7 - - - - 2,770 - ( 548,556 ) ( 6 ) ( 547,361) ( 5) ( 1,093,147) (11) ($ 401,900) ( 4) $ 727,758 7 ( 36,511) - $ 691,247 7 ( $ 358,525 ) ( 4 ) ( 43,375) - ($ 401,900) ( 4) $ 0.51 $ 0.51	From Jul. 1 to Sep. 30, 2014 (adjustment after the new standards) Amount ％ $ 10,652,589 100 5,375,520 50 5,277,069 50 226,820 2 4,641,645 44 4,868,465 46 408,604 4 264,238 3 ( 57,929 ) ( 1 ) ( 118,283 ) ( 1 ) ( 6,510) - 81,516 1 490,120 5 106,413 1 383,707 4 2,328,026 22 ( 157,056 ) ( 1 ) 14,571 - ( 170,330 ) ( 2 ) ( 87,850) ( 1) 1,927,361 18 $ 2,311,068 22 $ 333,528 3 50,179 1 $ 383,707 4 $ 2,261,533 21 49,535 1 $ 2,311,068 22 $ 0.23 $ 0.23	From Jul. 1 to Sep. 30, 2014 (adjustment after the new standards) Amount ％ $ 10,652,589 100 5,375,520 50 5,277,069 50 226,820 2 4,641,645 44 4,868,465 46 408,604 4 264,238 3 ( 57,929 ) ( 1 ) ( 118,283 ) ( 1 ) ( 6,510) - 81,516 1 490,120 5 106,413 1 383,707 4 2,328,026 22 ( 157,056 ) ( 1 ) 14,571 - ( 170,330 ) ( 2 ) ( 87,850) ( 1) 1,927,361 18 $ 2,311,068 22 $ 333,528 3 50,179 1 $ 383,707 4 $ 2,261,533 21 49,535 1 $ 2,311,068 22 $ 0.23 $ 0.23		Year ended Sep. 30, 2015 Amount ％ $ 31,645,260 100 15,561,769 49 16,083,491 51 752,409 3 13,866,914 44 14,619,323 47 1,464,168 4 361,163 1 120,295 ) - 353,504 ) ( 1 ) 425,049 1 312,413 1 1,776,581 5 664,049 2 1,112,532 3 - - - - 41,990 ) - 712,306 ) ( 2 ) 557,779) ( 2) 1,312,075) ( 4) $ 199,543) ( 1) $ 1,008,030 3 104,502 - $ 1,112,532 3 $ 292,747 ) ( 1 ) 93,204 - $ 199,543) ( 1) $ 0.70 $ 0.70	Year ended Sep. 30, 2014 (adjustment after the new standards)	Year ended Sep. 30, 2014 (adjustment after the new standards)	Year ended Sep. 30, 2014 (adjustment after the new standards)
		Amount $ 10,261,623 5,152,578 5,109,045 182,546 4,688,024 4,870,570 238,475 313,522 47,042 ) 121,440 ) 476,139 621,179 859,654 168,407 691,247 - - 2,770 548,556 ) 547,361) 1,093,147) $ 401,900) $ 727,758 36,511) $ 691,247 $ 358,525 ) 43,375) $ 401,900) $ 0.51 $ 0.51		Amount $ 10,652,589 5,375,520 5,277,069 226,820 4,641,645 4,868,465 408,604 264,238 57,929 ) 118,283 ) 6,510) 81,516 490,120 106,413 383,707 2,328,026 157,056 ) 14,571 170,330 ) 87,850) 1,927,361 $ 2,311,068 $ 333,528 50,179 $ 383,707 $ 2,261,533 49,535 $ 2,311,068 $ 0.23 $ 0.23		Amount $ 31,645,260 15,561,769 16,083,491 752,409 13,866,914 14,619,323 1,464,168 361,163 120,295 ) 353,504 ) 425,049 312,413 1,776,581 664,049 1,112,532 - - 41,990 ) 712,306 ) 557,779) 1,312,075) $ 199,543) $ 1,008,030 104,502 $ 1,112,532 $ 292,747 ) 93,204 $ 199,543) $ 0.70 $ 0.70		Amount $ 32,337,715 16,047,498 16,290,217 853,506 13,670,535 14,524,041 1,766,176 335,348 22,812 ) 341,346 ) 104,494 75,684 1,841,860 523,041 1,318,819 2,328,026 157,056 ) 9,729 122,491 ) 65,754) 1,992,454 $ 3,311,273 $ 1,018,279 300,540 $ 1,318,819 $ 3,013,943 297,330 $ 3,311,273 $ 0.71 $ 0.71	％
	( ( ( ( ( ( ( ( ( (		( ( ( ( ( (		( ( ( ( ( ( ( ( (		( ( ( ( (		100 49 51 3 42 45 6 1 - ( 1 ) - - 6 2 4 7 ( 1 ) - - - 6 10 3 1 4 9 1 10

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended Sep. 30, 2015 and 2014

(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 ofnon-current assets classified as held for sale A23500 Impairment loss on financial assets A24600 Loss (gain) on change in fair value of investment properties A29900 Amortization of prepayments A29900 Amortization of prepayments for lease A29900 Reversal of provisions 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 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	Year ended Sep. 30,2015 $ 1,776,581 2,280,990 25,673 ( 922 ) ( 28,222 ) 353,504 97 168,767 3,462 ( 1,627 ) 10,113 244,689 ( 3,200 ) ( 65,656 ) ( 425,049 ) ( 63,523 ) ( 297,640 ) 28,146 18,766 ( 155,716 ) ( 7,593 ) ( 593,000 ) ( 100,003 )	Year ended Sep. 30, 2014 (adjustment after the new standards)
		$ 1,841,860 2,195,953 20,502 ( 1,770 ) ( 6,816 ) 341,346 ( 316 ) 1,541 - - 10,597 240,970 ( 27,000 ) ( 101,136 ) ( 104,494 ) ( 70,728 ) ( 264,620 ) 14,613 32,866 ( 30,050 ) 8,725 332,206 ( 78,129 )

（ Continued ）

（ Continued ）

C o d e A31180 Other receivable A31200 Inventories A31230 Prepayments A31240 Other current assets A31990 Net defined benefit asset A32130 Notes payable A32150 Accounts payable A32160 Notes and accounts payable to related parties A32180 Other payables A32210 Advance receipts A32210 Deferred revenue A32240 Net defined benefit liability 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 B00600 Acquisition of investments in debt instrument without active market B01800 Acquisition of investments accounted for using equity method B02100 Decrease in prepayments for long-term investment 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 B05400 Acquisition of investment properties B06700 Increase (decrease) in other non-current assets B07300 Increase in prepayments for lease B07600 Dividends received BBBB Net cash flows from (used in) investing activities	Year ended Sep. 30,2015 22,407 ( 532,272 ) ( 67,663 ) 38,101 6,262 375,264 ( 5,350,725 ) ( 106,443 ) ( 794,129 ) 619,035 135,961 ( 5,255 ) 100,471 ( 2,390,349 ) ( 357,273 ) 66,585 19,246 ( 857,264) ( 3,519,055) 854,825 ( 106,000 ) 78,346 16 ( 1,377,109 ) 1,022 - ( 27,338 ) ( 1,822 ) ( 33,235 ) ( 12,607 ) 399,091 ( 224,811)	Year ended Sep. 30, 2014 (adjustment after the new standards)
		177,184 ( 130,085 ) ( 253,148 ) 21,054 5,981 ( 125,175 ) ( 5,294,900 ) ( 85,034 ) ( 1,161,382 ) 807,492 165,429 ( 3,739 ) 5,934 ( 1,514,269 ) ( 354,519 ) 85,452 210,212 ( 827,726) ( 2,400,850) ( 681,693 ) ( 360,000 ) 78,456 582 ( 1,573,147 ) 475 278,286 ( 28,950 ) - ( 4,489 ) ( 76,906 ) 393,640 ( 1,973,746)

（ 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 C04900 Payments to acquire treasury shares 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 Sep. 30,2015 34,055,868 ( 33,785,723 ) 18,821,278 ( 19,058,353 ) ( 1,000,000 ) 36,464,952 ( 34,690,000 ) ( 14,919 ) ( 1,439,211 ) ( 176,255 ) ( 581,519) ( 1,403,882) 11,849 ( 5,135,899 ) 10,952,918 $ 5,817,019	Year ended Sep. 30, 2014 (adjustment after the new standards)
		56,079,462 ( 52,879,060 ) 17,444,137 ( 16,722,551 ) ( 2,500,000 ) 32,159,768 ( 35,174,000 ) 14,816 ( 1,622,590 ) - ( 720,319) ( 3,920,337) 63,580 ( 8,231,353 ) 13,221,405 $ 4,990,052

(Concluded)