FEDS — Annual Report 2017

Sep 28, 2017

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

Jun. 30, 2017, Dec. 31, 2016 and Jun. 30, 2016

(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 1985 1990 15XX 1XXX Code 2100 2110 2150 2170 2180 2219 2230 2250 2310 2313 2322 2399 21XX 2530 2540 2550 2570 2640 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 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 Advance receipts Deferred revenue - current Long-term borrowings – current portion Other current liabilities Total current liabilities NONCURRENT LIABILITIES Bonds issued Long-term borrowings Provision-noncurrent Deferred tax liabilities Net defined benefit liability 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		June 30,2017 (Reviewed)	％ 8 1 - 2 - - - 2 - 2 1 - - 16 4 1 - 8 45 9 6 1 8 2 84 100 13 3 - 11 - 5 - - 8 - 4 - 44 1 14 - 2 1 2 20 64 14 3 3 3 1 7 4 - 28 8 36 100		Dec. 31,2016 (Audited)	％ 13 - - - - 1 - 2 - 3 1 - - 20 3 1 - 8 41 10 6 1 8 2 80 100 10 3 - 15 - 4 1 - 7 - 6 - 46 1 14 - 2 1 2 20 66 13 3 3 2 2 7 4 - 27 7 34 100		June 30,2016 (Reviewed)
			Amount $ 7,755,825 501,293 497,623 1,481,133 12,100 399,578 155,467 1,645,690 83,789 2,328,269 927,748 - 97,772 15,886,287 3,525,558 608,494 227,000 8,263,906 44,175,606 8,803,796 6,248,958 831,911 8,413,285 1,795,975 82,894,489 $ 98,780,776 $ 12,945,665 2,989,982 3,390 10,396,350 51,180 4,940,125 280,692 5,083 7,492,924 58,037 4,015,830 244,966 43,424,224 997,215 13,395,200 28,122 2,086,557 891,774 2,290,788 19,689,656 63,113,880 14,169,406 3,315,927 3,013,281 2,643,743 1,154,364 6,811,388 3,837,086 97,110) 28,036,697 7,630,199 35,666,896 $ 98,780,776			Amount $ 13,509,941 504,315 446,079 587,511 15,894 767,248 163,085 1,829,561 88,192 2,761,106 978,303 10,515 79,317 21,741,067 3,522,515 609,521 229,000 8,438,059 43,626,582 10,166,796 6,244,854 1,023,507 8,615,400 1,978,309 84,454,543 $ 106,195,610 $ 9,886,363 2,690,946 37,892 16,250,674 113,817 4,518,254 740,459 18,596 7,594,619 92,267 5,965,315 278,656 48,187,858 996,282 14,959,267 27,995 2,053,903 982,919 2,544,584 21,564,950 69,752,808 14,169,406 3,319,868 2,899,856 2,529,594 2,013,557 7,443,007 3,795,400 97,110) 28,630,571 7,812,231 36,442,802 $ 106,195,610			Amount $ 6,771,577 327,413 437,550 421,886 13,664 390,706 178,323 1,876,781 88,198 2,440,250 918,192 - 73,843 13,938,383 3,656,329 610,549 227,000 8,470,005 44,524,852 10,035,226 7,229,289 692,690 8,869,847 2,194,507 86,510,294 $ 100,448,677 $ 9,358,872 3,656,095 34,490 11,184,847 60,847 5,801,056 447,007 3,996 8,123,301 80,618 5,318,400 265,964 44,335,493 995,350 13,960,642 30,203 2,012,522 805,715 2,619,182 20,423,614 64,759,107 14,169,406 3,315,420 2,899,856 2,529,594 1,423,932 6,853,382 3,922,730 97,110) 28,163,828 7,525,742 35,689,570 $ 100,448,677	％
		(			(			(		7 - 1 - - - - 2 - 3 1 - - 14 4 1 - 8 44 10 7 1 9 2 86 100 9 4 - 11 - 6 1 - 8 - 5 - 44 1 14 - 2 1 2 20 64 14 3 3 3 1 7 4 - 28 8 36 100

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

From Apr. 1 to June 30, 2017 and 2016, and Year ended June 30, 2017 and 2016

(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 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 8600 NET INCOME ATTRIBUTED TO： 8610 Owners of parent 8620 Non-controlling interests 8700 CONPREHENSIVE INCOME CONTRIBUTED TO： 8710 Owners of parent 8720 Non-controlling interests EARNINGS PER SHARE 9750 Basic 9850 Diluted	From Apr. 1 to June 30, 2017 Amount ％ $ 9,353,827 100 4,598,960 49 4,754,867 51 233,735 2 3,984,243 43 4,217,978 45 536,889 6 16,568 - 3,660 - ( 112,690 ) ( 1 ) ( 91,445) (1) ( 183,907) (2) 352,982 4 220,034 3 132,948 1 ( 1,526 ) - ( 475,173 ) ( 5 ) ( 7,803) - ( 484,502) (5) ($ 351,554) (4) $ 118,605 1 14,343 - $ 132,948 1 ( $ 351,862 ) ( 4 ) 308 - ($ 351,554) (4) $ 0.08 $ 0.08	From Apr. 1 to June 30, 2016 Amount ％ $10,064,295 100 4,885,095 48 5,179,200 52 307,600 3 4,407,272 44 4,714,872 47 464,328 5 11,393 - ( 70,883 ) ( 1 ) ( 106,785 ) ( 1 ) ( 110) - ( 166,385) (2) 297,943 3 174,056 2 123,887 1 26,105 - ( 260,396 ) ( 2 ) ( 12,779) - ( 247,070) (2) ($ 123,183) (1) $ 103,239 1 20,648 - $ 123,887 1 ( $ 159,559 ) ( 1 ) 36,376 - ($ 123,183) (1) $ 0.07 $ 0.07

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended June 30, 2017 and 2016

(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 A23500 Impairment loss on financial assets A23700 Loss (gain) on disposal of property, plant and equipment, net A24600 Loss (gain) on change in fair value of investment properties 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 A22800 Loss (gain) on disposal of intangible assets A22500 Loss (gain) on disposal of property, plant and equipment, net A23000 Loss (gain) on disposal of non-current assets classified as held for sale A23100 Loss (gain) on disposal of investments A23800 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	Year ended June 30,2017 $ 816,752 1,337,128 20,816 30 3,022 227,300 1,027 2,022 ( 56,996 ) 14,991 162,842 - ( 92,267 ) 95,778 ( 31,459 ) ( 109 ) 1,112 181,985 ( 6,628 ) ( 3,958 ) 9,025 - 3,794	Year ended June 30,2016
		$ 903,710 1,474,685 20,893 - 23,695 215,015 1,027 - 4,600 9,826 163,798 ( 106,800 ) ( 98,552 ) 35,587 ( 24,146 ) ( 274 ) - 16,411 - - ( 128,439 ) 3 ( 10,271 )

（ Continued ）

（ Continued ）

C o d e A31150 Accounts receivable A31160 Notes and accounts receivable due from related parties A31180 Other receivable A31200 Inventories A31230 Prepayments A31240 Other current assets A32130 Notes payable A32150 Accounts payable A32160 Notes and accounts payable to related parties A32180 Other payables A32200 Provisions A32210 Receipts in advance 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 A33200 Dividend received A33500 Income taxes returned A33500 Income taxes paid AAAA Net cash flows from (used in) operating activities CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES B00300 Acquisitions of available-for-sale financial assets B00400 Proceeds from disposal of available-for-sale financial assets 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 B04500 Acquisition of intangible assets B04600 Proceeds from disposal of intangible assets B05400 Acquisition of investment properties B06700 Increase (decrease) in other non-current assets BBBB Net cash flows from (used in) investing activities	Year ended June 30,2017 351,511 7,618 247,843 423,812 45,709 ( 18,455 ) ( 34,502 ) ( 5,854,324 ) ( 62,637 ) ( 905,565 ) ( 13,513 ) 5,533 58,037 ( 91,145 ) ( 33,689) ( 3,187,560 ) ( 209,335 ) 27,794 53,574 3,237 ( 629,537) ( 3,941,827) ( 92,331 ) 80,160 ( 891,623 ) ( 136,655 ) 36,393 12,643 ( 859,849 ) 1,404 ( 16,594 ) - ( 1,004 ) 100,707 ( 1,766,749)	Year ended June 30,2016
		124,936 4,647 304,039 792,229 35,124 16,259 ( 17,734 ) ( 5,421,119 ) ( 58,907 ) ( 632,935 ) - 179,316 80,618 3,107 ( 43,800) ( 2,133,452 ) ( 197,280 ) 19,741 1 500 ( 154,802) ( 2,465,292) - - 354,961 - 55,972 - ( 666,348 ) 8,608 ( 10,299 ) 306 ( 3,743 ) ( 263,780) ( 524,323)

（ 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 C01600 Proceeds from long-term debt C01700 Repayment of long-term debt C04400 Decrease in other non-current liabilities C04500 Dividends paid by parent company C05800 Dividends paid to non-controlling interests C05800 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 30,2017 65,321,222 ( 62,081,383 ) 16,008,543 ( 15,709,507 ) 28,177,564 ( 31,694,200 ) ( 23,541 ) ( 108 ) - - ( 1,410) ( 44,130) ( 5,754,116 ) 13,509,941 $ 7,755,825	Year ended June 30,2016
		51,388,140 ( 51,406,270 ) 15,152,531 ( 13,847,456 ) 20,790,097 ( 22,300,000 ) ( 24,527 ) ( 36 ) ( 39,098 ) ( 50,186) ( 336,805) 71,367 ( 3,255,053 ) 10,026,630 $ 6,771,577

(Concluded)