FEDS — Annual Report 2016

Mar 22, 2017

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

Sep. 30, 2016, Dec. 31 , 2015 and Sep. 30, 2015

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

Code 1100 1110 1125 1147 1150 1170 1180 1200 1220 130X 1429 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 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 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 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		Sep. 30,2016 (Reviewed)			Dec. 31,2015 (Audited)	％ 9 - - 1 - 1 - 2 - 3 1 - 17 3 - - 9 43 9 7 1 - 9 2 83 100 9 2 - 16 - 5 - - - 7 2 - 41 1 18 - 2 1 2 24 65 13 3 3 2 3 8 4 - 28 7 35 100		Sep. 30,2015 (Reviewed)
			Amount $ 6,323,687 323,676 436,833 474,476 9,641 444,791 156,367 1,412,019 89,455 3,116,332 1,079,893 72,320 13,939,490 3,585,009 610,035 227,000 8,466,609 44,028,849 10,035,226 7,228,077 769,925 - 8,761,973 2,116,368 85,829,071 $ 99,768,561 $ 10,023,663 2,855,385 31,008 11,557,329 50,537 4,225,382 356,836 3,998 138,665 8,245,354 6,018,400 285,102 43,791,659 995,816 13,760,739 30,270 2,012,274 807,547 2,559,299 20,165,945 63,957,604 14,169,406 3,315,420 2,899,856 2,529,594 1,626,518 7,055,968 3,854,364 97,110) 28,298,048 7,512,909 35,810,957 $ 99,768,561	％		Amount			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 1,788,353 558,037 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	％
		(		6 - 1 1 - 1 - 1 - 3 1 - 14 4 1 - 8 44 10 7 1 - 9 2 86 100 10 3 - 12 - 4 1 - - 8 6 - 44 1 14 - 2 1 2 20 64 14 3 3 2 2 7 4 - 28 8 36 100	(	$ 10,026,630 351,111 468,682 876,847 3,393 515,195 182,970 1,687,802 5,782 2,997,240 871,542 90,102 18,077,296 3,689,341 611,576 127,000 9,163,153 45,612,886 10,036,266 7,240,992 727,394 - 9,177,719 1,873,863 88,260,190 $ 106,337,486 $ 9,499,733 2,351,020 52,224 16,605,966 119,754 4,895,382 182,997 3,000 98,552 8,063,527 1,959,200 309,764 44,141,119 994,419 18,829,745 31,058 1,991,395 802,608 2,695,271 25,344,496 69,485,615 14,169,406 3,315,420 2,728,379 2,461,168 2,673,946 7,863,493 3,995,790 97,110) 29,246,999 7,604,872 36,851,871 $ 106,337,486		(		6 1 1 - - 1 - 1 - 3 1 - 14 4 1 - 9 44 9 7 1 - 9 2 86 100 7 3 - 12 - 4 - - - 8 2 - 36 1 22 - 2 - 3 28 64 14 3 3 2 2 7 5 - 29 7 36 100

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

From July 1 to Sep.30, 2016 and 2015, and Year ended Sep. 30, 2016 and 2015

(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 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 July 1 to Sep. 30, 2016 Amount ％ $ 9,850,164 100 5,003,983 51 4,846,181 49 228,398 2 4,344,937 44 4,573,335 46 272,846 3 191,553 2 ( 213,366 ) ( 2 ) ( 104,820 ) ( 1 ) 32,251 - ( 94,382) (1) 178,464 2 15,032 - 163,432 2 26,323 - ( 72,037 ) ( 1 ) 3,669 - ( 42,045) (1) $ 121,387 1 $ 202,586 2 ( 39,154) - $ 163,432 2 $ 134,220 1 ( 12,833) - $ 121,387 1 $ 0.14 $ 0.14	From July 1 to Sep. 30, 2016 Amount ％ $ 9,850,164 100 5,003,983 51 4,846,181 49 228,398 2 4,344,937 44 4,573,335 46 272,846 3 191,553 2 ( 213,366 ) ( 2 ) ( 104,820 ) ( 1 ) 32,251 - ( 94,382) (1) 178,464 2 15,032 - 163,432 2 26,323 - ( 72,037 ) ( 1 ) 3,669 - ( 42,045) (1) $ 121,387 1 $ 202,586 2 ( 39,154) - $ 163,432 2 $ 134,220 1 ( 12,833) - $ 121,387 1 $ 0.14 $ 0.14	From July 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 July 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		Year ended Sep. 30, 2016	Year ended Sep. 30, 2016		Year ended Sep. 30, 2015	Year ended Sep. 30, 2015
		Amount		Amount		Amount	％			％
	$ 9,850,164 5,003,983 4,846,181 228,398 4,344,937 4,573,335 272,846 191,553 ( 213,366 ) ( 104,820 ) 32,251 ( 94,382) 178,464 15,032 163,432 26,323 ( 72,037 ) 3,669 ( 42,045) $ 121,387 $ 202,586 ( 39,154) $ 163,432 $ 134,220 ( 12,833) $ 121,387 $ 0.14 $ 0.14		$10,261,623 5,152,578 5,109,045 182,546 4,688,024 4,870,570 238,475 313,522 ( 47,042 ) ( 121,440 ) 476,139 621,179 859,654 168,407 691,247 2,770 ( 548,556 ) ( 547,361) (1,093,147) ($ 401,900) $ 727,758 ( 36,511) $ 691,247 ( $ 358,525 ) ( 43,375) ($ 401,900) $ 0.51 $ 0.51		$30,788,935 15,233,683 15,555,252 840,329 13,117,833 13,958,162 1,597,090 215,973 ( 407,718 ) ( 319,835 ) ( 3,336) ( 514,916) 1,082,174 406,807 675,367 70,053 ( 136,181 ) ( 24,707) ( 90,835) $ 584,532 $ 610,543 64,824 $ 675,367 $ 469,117 115,415 $ 584,532 $ 0.43 $ 0.43		100 50 50 3 42 45 5 1 ( 2 ) ( 1 ) - (2) 3 1 2 - - - - 2 2 - 2 2 - 2			100 49 51 3 44 47 4 1 - ( 1 ) 1 1 5 2 3 - ( 2 ) (2) (4) (1) 3 - 3 ( 1 ) - (1)

FAR EASTERN DEPARTMENT STORES, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended Sep. 30, 2016 and 2015

(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 A23700 Impairment loss on Property, plant and equipment A24600 Loss (gain) on change in fair value of investment properties 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 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 A31150 Accounts receivable （Continued）	Year ended Sep. 30,2016 $ 1,082,174 2,201,262 31,048 ( 496 ) 27,430 319,835 - 1,541 137,271 4,600 - 21,320 245,467 ( 106,800 ) ( 98,552 ) 3,336 ( 35,384 ) ( 180,589 ) 25,411 ( 129,422 ) 5 ( 6,248 ) 70,847	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 )

（ Continued）

C o d e A31160 Notes and accounts receivable due from related parties 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 B00700 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 B07300 Increase in prepayments for lease B07600 Dividends received BBBB Net cash flows from (used in) investing activities Cash flows from (used in) financing activities C00100 Increase in short-term loans	Year ended Sep. 30,2016 26,603 291,692 117,130 ( 147,137 ) 17,782 - ( 21,216 ) ( 5,048,637 ) ( 69,217 ) ( 659,729 ) 364,721 138,665 4,939 ( 24,662) ( 1,395,010 ) ( 296,448 ) 31,709 500 ( 323,431) ( 1,982,680) 302,371 ( 74,000 ) 96,164 - ( 1,234,620 ) 8,608 ( 20,074 ) 306 ( 3,743 ) ( 133,445 ) - 657,194 ( 401,239) 79,075,861	Year ended Sep. 30, 2015	Year ended Sep. 30, 2015
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	100,003 ) 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) 34,055,868

（ Continued）

（ Continued）

C o d e 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 Repayment of bonds C01600 Proceeds from long-term debt C01700 Repayment of long-term debt C04400 Decrease in other non-current liabilities C04500 Dividends paid to owners of the Corporation C04900 Payments to acquire treasury shares C05800 Dividends paid to non-controlling interests C05800 Non-controlling Interests CCCC Net cash flows from (used in) financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Net increase (decrease) in cash and cash equivalents E00100 Cash and cash equivalents at beginning of period E00200 Cash and cash equivalents at end of period	Year ended Sep. 30,2016 ( 78,268,251 ) 24,360,600 ( 23,856,235 ) - 33,530,194 ( 34,540,000 ) ( 35,992 ) ( 1,417,029 ) - ( 149,862 ) ( 50,186) ( 1,350,900) 31,876 ( 3,702,943 ) 10,026,630 $ 6,323,687	Year ended Sep. 30, 2015	Year ended Sep. 30, 2015
	( ( ( ( ( ( ( ( (	( ( ( ( ( ( ( ( ( (	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

(Concluded)