Post on 06-Jul-2020
transcript
SpokespersonName: Sheng-Wei, MaiTitle: Assistant Vice PresidentTel: 886-2-2758-9599E-mail:9808039@prince.com.tw
Deputy SpokespersonName: Da-Chang, DaiTitle: Accounting ManagerTel: 886-6-282-1155E-mail:8803019@prince.com.tw
Stock Transfer AgentPresident Security Corp.Address: No.8, Dongxing Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.)Tel: 886-2-2746-3797Website: www.pscnet.com.tw
AuditorsPriceWaterhouseCooperAuditors: Yi-Zhang, Lin Guo-Hua, WangAddress: 22F., No.95, Minzu 2nd
Rd., Lingya Dist., Kaohsiung City 802, Taiwan (R.O.C.)Tel.: 886-7-237-3116Website: www.pwc.com/tw
Overseas Securities ExchangeNone
Corporate Websitehttp://www. prince.com.tw
Headquarters, Branches and PlantHeadquartersAddress: 21F., No.11, Songgao Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.)Tel: 886-2- 2758-9599
Taichung BranchAddress: 14F., No.416, Sec. 2, Chongde 2nd Rd., Beitun Dist., Taichung City 406, Taiwan (R.O.C.)Tel: 886-4- 2242-7376
Tainan BranchAddress: 19F., No.30, Zhongzheng S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)Tel: 886-6-282-1155
KaouHsiung BranchAddress: 11F., No.74, Zhongzheng 2nd Rd., Lingya Dist., Kaohsiung City 802, Taiwan (R.O.C.)Tel: 886-7-222-9891
Prince Housing & Development Corp . Annual Report 2012
1
Prince Housing & Development Corp . Annual Report 2012
IV
V
III
II
I
ContentsLetter to Shareholders 3
Company Profile
2.1 Date of Incorporation 72.2 Company History 7
Corporate Governance Report
3.1 Organization 93.2 Directors, Supervisors and Management Team 123.3 Implementation of Corporate Governance 273.4 CAPs Fee 403.5 CPA Replacement Information 413.6 If the chairman, president, and financial or accounting manager of the company who had worked for the independent auditor or the related party in the most recent year, the name, title, and term with the independent auditor or the related party must be disclosed 413.7 Equity transferred and equity pledged (or changes thereto) by Directors, Supervisors, Department Heads and Shareholders of 10% Shareholding or More during the preceding fiscal year or in the current fiscal year up to the date of printing of the annual report 413.8 The relationship of the top ten shareholders as defined in the Finance Standard Article 6 443.9 Investments of Directors, Supervisors, managers and directly or indirectly controlled business on the reinvested business and the total shareholdings ratio 45
Capital Overview
4.1 Capital and Shares 474.2 Issuance of Corporate Bonds 524.3 Issuance of Preferred Shares 534.4 Global depository receipts 534.5 Employee Stock Options 534.6 Status of New Shares Issuance in Connection with Mergers and Acquisition 534.7 Information on Implementation of the Company’s Funds Utilization Plans 53
Operational Highlights
5.1 Business Activities 55
.........................................................................................
...............................................................................................................................................................................
...............................................................................................................................................
..........................................................................................................................................................
......................................................................
.....................................................................
..........................................................................................................................................................................................................................................
............................................................................................................................................................
.............
.......................................................................................
...............................................................
.........................................................................................
............................................................................................................
2
5.2 Market and Sales Overview 575.3 Human Resources 615.4 Disbursement of environmental protection 615.5 Labor Relations 615.6 Important Contracts 62
Financial Information
6.1 Five-Year Financial Summary 656.2 Five-Year Financial Analysis 696.3 Supervisors’ Report in the Most Recent Year 716.4 Financial Statements for the Years Ended December 31, 2011 and 2010, and Independent Auditors’ Report 736.5 Consolidated Financial Statements for the Years Ended December 31, 2011 and 2010, and Independent Auditors’ Report 140
VII. Review of Financial Conditions, Operating Results, and Risk Management
7.1 Analysis of Financial Status 2147.2 Analysis of Operation Results 2157.3 Analysis of Cash Flow 2167.4 Major Capital Expenditure Items 2177.5 Investment Policy in Last Year, Main Causes for Profits or Losses, Improvement Plans and the Investment Plans for the Coming Year 2177.6 alysis of Risk Management 217
Special Disclosure
8.1 Summary of Affiliated Companies 2218.2 Private Placement Securities in the Most Recent Years 2328.3 The Shares in the Company Held or Disposed of by Subsidiaries in the Most Recent Years 232
VIII
VI
VII
..............................................................................................................................................
..................................................................................................................................................................................
................................................................................................................................................
..................................................
.......................................................................
..................................................
.................................................................................................................................................
.....................................................................................................................................................
.....................................................................................................
...............................................................................
...........................................................................
............................................................................................
Letter to Shareholders
I Annual Report 2012
4
Letter to Shareholders
I. Operating Performance in 2012
Looking back to 2012, global economic went down continually caused by worsen European debt crisis and China’s macro-economic control. Domestic economy grew slowly result from decreasing export, second generation national health insurance, taxation of capital gains on securities, price lift and unconfident consuming.
In real estate, luxury home tax, financing controlling, and actual selling price property value reporting shock the luxury house market, especially in Taipei City. However, these policies worked. The government successfully constrained the speculation trade, and steadied the house market price. Last year, we launched app. Customers can look the houses online, get news, life information, discount and so on. Besides, we establish fans group on Facebook to create our blue ocean market. With faithful, reputation and precise choosing valued location, we had caught up and be the top. Completed location were Taipei Shinyi, Prince College, Prince Yan Yan, Prince Ju , Prince Hui , Prince Flora II, Prince Feng Yun Hui , Prince Shi Bo, Prince Shi Yun, and Prince Bon. The sales revenue amounted to NT$7.892 billion in 2012, net income amounted to NT$1.786 billion.
II. Business Plan in 2013
Global economies will recover slowly in uncertainty atmosphere. Every country imposed variety fiscal policies looking forward to get out of swamp such as European Union treaties of single fiscal supervising institute, increasing tax in America, devaluing Yen to increase the export. It’s hard to see the significant effect on these measures in short term, following American fiscal negotiation, slow-down growth in China and political crisis in the Middle East countries are unsure condition for economy grown-up. In Taiwan, the export trade increased by the global economy recovery and the capital attracted by the law “Strengthen the promotion of Taiwanese investment program back to Taiwan” will resume the consumer confidences and strengthen the domestic demand. Beside, “Economic momentum push up program” develop emerging markets and export service industry, as a result, we can improve our output momentum and consumer markets.
Real estate market bloomed near HSR and along the MRT areas, moreover, expanded to urban cities. For example, HSR areas, along the MRT and essential site in Taichung City are the hot spots. The law of actual selling price property value reporting stroke the over high price in Taipei City, but luxury tax will relieve intention this year. It is worthy to observe if it will bring another upsurge. Expected completed sites this year are Prince Central Park, Prince Fu, Prince Dao, Jing Yun Jian, Flower Expo III, Prince Cloud, and Prince Flower Blossom.
Prince Housing & Development Corp . Annual Report 2012
5
III. Strategy in the future
Our company will push some programs including Young Man First Buy, changing houses, and cooperating with known enterprise to build business building combined with resident. In addition, we launch the business center of environmental buildings and smart management in order to provide complete product and cloud computing system, we expect our customers can enjoy the future life. Our income-producing real estate has stable profit and operating. We persist faithful, profitable on operating, and care about stockholders equity and employee benefits. With three good and one faith spirit, we will continually provide good location, good design, good construction quality and good price buildings.
Company Profile
Annual Report 2012II
Prince Housing & Development Corp . Annual Report 2012
7
I. Company Profile2.1 Date of Incorporation: September 20, 19732.1 Company History
Prince was founded on September 20 by Xiu-Ji, Wu, Yu-Li, Hou, Zum-Xian, Wu, Jum-Jie, Wu, Qing-Yuan, Gao, Gau-Hui, Zheng, Sheng-Ru, Zhuang, Xian-Fu, Zhuang, Zhang-Xing, Wu in 1973. The changes in capital are as followed.
Year Milestones
1973 Founded on September 20 with NT$37.5 million capital.
1975 Increased Capital to NT$97.5 million
1976 Increased capital to NT$120 million.
1977 Increased capital to NT$150 million.
1981 Increased capital to NT$195 million.
1983 Increased capital to NT$273 million.
1984 Increased capital to NT$327.6 million.
1989 Increased capital to NT$1,300 million.
1990 Increased capital to NT$1,950 million
1991 Increased capital to NT$2,925 million
1992 Increased capital to NT$3,948.75 million
1993 Increased capital to NT$5,330.81 million
1994 Increased capital to NT$6,396.98 million
1995 Increased capital to NT$7,036.67 million
1996 Increased capital to NT$7,388.51 million
1997 Increased capital to NT$7,979.59 million
1998 Increased capital to NT$8,777.55 million
1999 Increased capital to NT$9,216.43 million
2002 Decreased capital to NT$9,150.76 million
2003 Decreased capital to NT$9,058.40 million
2005 Decreased capital to NT$9,013.33 million
2006 Decreased capital to NT$8,654.26 million
2007 Increased capital to NT$9,300.1 million
2008 Increased capital to NT$9,579.11 million
2010 Increased capital to NT$9,962.27 million
2011 Increased capital to NT$10,858.88 million
2012 Increased capital to NT$11,944.76 million
Annual Report 2012III
Corporate Governance Report
Prince Housing & Development Corp . Annual Report 2012
9
II. Corporate Governance Report3.1 Organization3.1.1 Organization Chart
10
3.1.2 Major Corporate Functions
Department Functions
Audit Office
1. Perform auditing activities identified by the Board of Directors.2. Evaluate the internal control system and identify the effectiveness and
the efficiency of each operation cycle.3. Report periodically the status of audit plan and provide related
recommendations as well as continuous improvement.4. Make certain that Prince is in full compliance with the government laws
and regulations.
Secretary Office
1. Legal: A. Manage Prince’s involvement in litigation; B. Draft and review contracts and correspondence. C. Participate in negotiation.
2. Public Relationship: a. Borden and deepen Prince’s network of relationship across the
Foreign Investors, the Security Investment Companies, and company associations.
b. Serve as Prince’s central contact for media and disseminate information regarding Prince activities to the public.
3. Secretary: Conduct assignments from the Chairman, the supervisors and the Board of Directors, arrange schedules, and manage artist paintings.
Cost Control1. Follow the company policy to purchase and deliver raw materials.2. Update continuously individual project cost from planning to settlement.
Planning and Strategy
1. BOT projects: Operate dormitory BOT of National Taiwan University and National Cheng Kung University.
2. Investment Planning: Indentify effective investment strategies and conduct investment feasibility evaluation.
Information Technology
1. Overall information technology and information security.2. Develop and maintain software programs.3. Run the IT vendor management and the contract, acquisitions, and
relationship with strategic IT vendors.
Accounting
1. Accounting: a. Record the transactions on the basis of invoice, bills and vouchersb. Keep bills and vouchers in safe place after including them in files.
2. Prepare interim financial statement.3. Cost: Prepare different kinds of documents to maintain individual/
summary inventory costs.
Prince Housing & Development Corp . Annual Report 2012
11
Department Functions
Finance
1. Financea. Collect and analyze the subsidiaries data.b. Monitor the subsidiaries budget operations and make sure they are in
line with their budget estimates.2. Finance:
a. Prepare cash budget.b. Collect and distribute cash to support each branch and each subsidiary.c. Pay salaries and manage cash and notes payable in hand.
3. Finance in Taipei:a. Meet and surpass the internal and the subsidiaries financial needs.b. Maintain loans, accounts, and matters related thereof.
Administrative1. Administrative: Responsible for all general affaires.2. Human Resource: All matters related to human resource management.
Engineering
1. Conduct surveys, engage in research, analyze results, plan constructions and oversee them along the way.
2. Estimate costs involved and submit proper documents related to the construction quality and construction progress.
3. Technique Development: Research and develop in construction technique and matters about technique cooperation.
12
3.2
Dir
ecto
rs, S
uper
viso
rs a
nd M
anag
emen
t Tea
m3.
2.1
Dir
ecto
rs a
nd S
uper
viso
rs
Title
Na
me
Date
Elec
tedTe
rm(Y
ears)
Date
First
Elec
ted
Shar
ehol
ding
whe
nEl
ected
Curre
nt
Shar
ehol
ding
Spou
se &
Min
orSh
areh
oldi
ng
Shar
ehol
ding
byNo
min
eeAr
rang
emen
tEx
perie
nce
(Edu
catio
n)Ot
her P
ositi
on
Exec
utiv
es, D
irecto
rs or
Sup
ervi
sors
who a
re sp
ouse
s or w
ithin
two
degr
ees o
f kin
ship
Shar
es%
Shar
es%
Shar
es%
Shar
es%
Title
Nam
eRe
latio
n
Chair
man
Hong
-Yao
Inve
stmen
tCo
., Ltd
Repr
esen
tativ
e:Na
-Tian
, Zhu
ang
6.24
.201
03
6.15
.200
71,
660,
875
11,9
70,3
41
0.17
%
1.25
%
2,07
1,04
3
14,7
19,9
19
0.17
%
1.23
%
0
2,39
9,68
1
0
0.20
%
0 0
0 0
Mas
ter of
Ag
ricul
tura
l Ec
onom
ics,
Natio
nal T
aiwan
Un
iver
sity
None
Dire
ctor
Zeng
Zhau
-Mei,
Wu
In la
w
Dire
ctor
Jian-
De, W
uIn
law
Dire
ctor
Pien
-Zhi
, Wu
In la
w
Vice
Chair
man
Fu-S
heng
Dev
elopm
ent
Co., L
tdRe
pres
entat
ive:
Min
g-Hu
i, Zh
en
6.24
.201
03
6.15
.200
76,
358,
944
4,18
7,98
8
0.68
%
0.44
%
8,15
3,80
0
5,22
2,25
2
0.68
%
0.44
%
0
323,
614
0
0.03
%
0 0
0 0
Natio
nal C
hung
Hsin
g Uni
versi
ty
Chair
man
ofFu
-She
ngDe
velo
pmen
t Co.,
Ltd
None
None
None
Man
agin
gDi
recto
rBo
-Min
g, Ha
o6.
24.2
010
36.
15.2
003
13,0
20,5
461.
36%
16,6
07,7
891.
39%
00
00
Chin
ese C
ultu
re
Univ
ersit
y
Dire
ctor o
f Un
i-Pre
siden
t Co.,
Lt
dCh
airm
an an
d Pr
esid
ent o
f Ta
inan
spin
Dire
ctor
Bo-Y
i, Ha
oSi
blin
g
Man
agin
g Di
recto
r
Yong
-Yua
n Inv
estm
ent
Co., L
rdZh
oung
-Huo
, Wu
6.20
.201
21
6.20
.201
210
,156
,035
3,53
4,62
2
0.94
%
0.33
%
11,1
71,6
38
3,88
8,08
4
0.94
%
0.33
%
0
948,
933
0
0.08
%
0 0
0 0
Feng
Chi
a Un
iver
sity
Pres
iden
t of S
an-
Shin
g Spi
nnin
g Co
., Ltd
, Dire
ctor
of Y
ong-
Yuan
In
vestm
ent C
o.,
Lrd,
Dire
ctor o
f Yo
ng-S
hin
Inve
stmen
t Co.,
Lr
d
None
None
None
Man
agin
g Di
recto
r
Jiou-
Fu In
vestm
ent C
o.,
Ltd.
Repr
esen
tativ
e:Li
-Lin
g, Zh
eng
6.24
.201
03
4.3.
1989
9,31
8,28
0
0
0.95
%
0.00
%
11,3
95,0
68
0
0.95
%
0.00
%
0 0
0 0
0 0
0 0
Natio
nal T
aiwan
Un
iver
sity
Assis
tantV
ice
Pres
iden
t of
Tain
ansp
in,
Man
agin
g Di
recto
r of
NanT
ex In
dusty
Di
recto
r ofU
ni-
Pres
iden
t Ass
et M
gmt.
Grou
p
None
None
None
Prince Housing & Development Corp . Annual Report 2012
13
Title
Na
me
Date
Elec
tedTe
rm(Y
ears)
Date
First
Elec
ted
Shar
ehol
ding
whe
nEl
ected
Curre
nt
Shar
ehol
ding
Spou
se &
Min
orSh
areh
oldi
ng
Shar
ehol
ding
byNo
min
eeAr
rang
emen
tEx
perie
nce
(Edu
catio
n)Ot
her P
ositi
on
Exec
utiv
es, D
irecto
rs or
Sup
ervi
sors
who a
re sp
ouse
s or w
ithin
two
degr
ees o
f kin
ship
Shar
es%
Shar
es%
Shar
es%
Shar
es%
Title
Nam
eRe
latio
n
Dire
ctor
Tai-B
o Inv
estm
ent C
o.,
Ltd
Repr
esen
tativ
e:Jia
n-De
, Wu
6.24
.201
03
4.3.
1989
35,4
64,3
46
4,60
0,78
0
3.70
%
0.48
%
43,2
87,3
99
5,73
6,98
7
3.62
%
0.48
%
0
178,
373
0
0.01
%
0 0
0 0M
BA
Man
agin
g Di
recto
r of K
un-
Chin
g De
velo
pmen
t Co.
Dire
ctor o
f ST
SP
Unite
d Cor
p.CE
O of
Uni
-Pr
esid
ent A
sset
Mgm
t.Co
rp.
Dire
ctor
Zeng
Zha
u-M
ei, W
uIn
law
Chair
man
Na-T
ian
Zhua
ngIn
law
Dire
ctor
Pien
-Zhi
, Wu
In la
w
Direc
tor
Chen
g-Lo
ng In
vestm
ent
Co., L
td.
Repr
esen
tativ
e:Yi
ng-Z
hi, Z
huan
g
6.24
.201
03
4.26
.198
615
,191
,300
431,
781
1.59
%
0.05
%
18,9
42,9
42
538,
412
1.59
%
0.05
%
0
6,02
3,77
2
0
0.50
%
0 0
0 0
Huin
g Wu
Insti
tute
of
Tech
nolo
gy
Pres
iden
t of
Shin
Bo F
iber
Co.,
Lt
d.Su
perv
isor
Ying
-Na
n,Zh
uang
Sibl
ing
Direc
tor
Chen
g-Lo
ng In
vestm
ent
Co., L
td.
Repr
esen
tativ
e:Yi
ng-Z
hi, Z
huan
g
6.24
.201
03
6.24
.201
04,
075,
415
7,15
2,48
6
0.43
%
0.75
%
5,08
1,87
7
8,85
0,31
0
0.43
%
0.74
%
0
2,89
2,46
1
0
0.24
%
0 0
0 0
Mate
r of
Scien
ce,
Univ
ersit
y of
Sout
h Cali
forn
ia
Dire
ctor o
f Uni
-Pr
esid
ent C
o., L
td.
Chair
man
Na-T
ian
Zhua
ngIn
law
Dire
ctor
Zeng
Zha
u M
e, W
uM
othe
r
Dire
ctor
Jian-
De, W
uSi
blin
g
Direc
torZe
ng Z
hau M
ei, W
u6.
24.2
010
34.
26.1
986
23,7
36,1
222.
48%
29,2
69,9
462.
45%
00
00
Juni
or H
igh
Scho
ol
Man
agin
g Di
recto
r of
Tina
nspi
n Co.,
Ltd
Chair
man
Na-T
ian
Zhua
ngIn
law
Dire
ctor
Jian-
De, W
uSo
n
Dire
ctor
Pien
-Zhi
, Wu
Son
Dire
ctor
Bo-M
ing,
Hao
6.24
.201
03
6.15
.200
49,
697,
878
1.01
%12
,092
,865
1.01
%0
00
0Na
tiona
l Che
ng
Kong
Uni
versi
ty
Dire
ctor o
f Ti
nanS
pin C
o.,
Ltd
Chair
man
of H
sin
Fu H
sin In
dustr
y Co
., Ltd
.Ch
aiman
of
Univ
ersa
l Cem
ent
Corp
orati
on.
Man
agin
g Di
recto
rBo
-Min
g,
Hou
Sibl
ing
Dire
ctor
Zhao
-Wen
, Hua
ng6.
24.2
010
36.
24.2
010
9,27
2,46
50.
97%
11,7
58,4
550.
98%
00
00
Natio
nal C
hung
Hs
in U
nive
rsity
Vice
Cha
irman
of
BioS
un
Tech
nolo
gy C
o.,
Ltd
Dire
ctor
Zhon
g-Jia
n,W
uIn
law
14
Title
Na
me
Date
Elec
tedTe
rm(Y
ears)
Date
First
Elec
ted
Shar
ehol
ding
whe
nEl
ected
Curre
nt
Shar
ehol
ding
Spou
se &
Min
orSh
areh
oldi
ng
Shar
ehol
ding
byNo
min
eeAr
rang
emen
tEx
perie
nce
(Edu
catio
n)Ot
her P
ositi
on
Exec
utiv
es, D
irecto
rs or
Sup
ervi
sors
who a
re sp
ouse
s or w
ithin
two
degr
ees o
f kin
ship
Shar
es%
Shar
es%
Shar
es%
Shar
es%
Title
Nam
eRe
latio
n
Dire
ctor
Zhen
-Qin
, Che
n6.
24.2
010
36.
19.2
001
1,34
3,43
10.
14%
763,
204
0.06
%13
50.
00%
00
Natio
nal C
heng
Ku
ng U
nive
rsity
None
None
None
None
Dire
ctor
Jing-
Xin,
Chen
6.24
.201
03
6.15
.200
435
0,54
40.
04%
449,
102
0.04
%0
00
0
MBA
,Un
iver
sity o
f M
ichig
anGe
orge
W
ashi
ngto
n Un
iver
sity
Man
ager
of U
ni-
Pres
iden
t Co.,
Ltd
None
None
None
Dire
ctor
Hong
-Yan
, Zhu
ang
6.24
.201
03
6.24
.201
023
6,90
90.
02%
381,
263
0.03
%0
00
0
Mas
ter of
Sc
ience
,Un
iver
sity o
f So
uth C
alifo
rnia
Seni
or E
ngin
eer
of IB
MNo
neNo
neNo
ne
Dire
ctor
Jun-
Chen
g, Ku
o6.
24.2
010
36.
24.2
010
00
00
00
00
Huaf
an
Univ
ersit
yM
anag
er of
this
com
pany
None
None
None
Supe
rviso
r
Guan
g-W
ei In
vestm
ent
Co., L
tdRe
pres
entat
ive:
Ying
-Na,
Zhua
ng
6.24
.201
03
6.24
.201
012
,053
,920
920,
772
1.26
%
0.10
%
15,0
30,7
54
1,14
8,16
4
1.26
%
0.10
%
0
5,00
9,34
6
0
0.42
%
0 0
0 0
MBA
,Fe
ng C
hia
Univ
ersit
yKi
nki
Univ
ersit
y, Ja
pan
Chair
man
of
SinB
o Fib
er C
o.,
Ltd
Dire
ctor
Ying
-Zhi
, Zh
uang
Sibl
ing
Supe
rviso
rDa
-Xio
ng, X
u6.
24.2
010
36.
24.2
010
75,4
610.
01%
503,
242
0.04
%36
,983
0.00
%0
0
MBA
,Un
iver
sity o
f Te
xas
Natio
nal T
aiwan
Un
iver
sity
Vice
Cha
irman
of
Mau
Chi
au
Arch
itects
&
Asso
ciates
and
Mau
Chi
au
Cons
ultin
g En
gine
ers,
Inc
None
None
None
Not
e: M
anag
ing
Dire
ctor
Zho
ng-J
ian,
Wu
died
on
May
2, 2
012,
and
the
seat
of m
anag
ing
dire
ctor
is s
ubst
itute
d by
Yon
g-Yu
an In
vest
men
t Co.
, Lrd
(R
ep. Z
hong
-Huo
, Wu)
Prince Housing & Development Corp . Annual Report 2012
15
Name of institutional shareholders
Major shareholders of the institutional shareholders
Hon
g-Ya
n In
vest
men
t Co.
, Ltd
Shi-H
ong,
Zhu
ang(
34%
), Q
in-T
i, W
u(33
%),
Yan-
Yo, Z
huan
g(33
%)
Fu-S
heng
Inve
stm
ent C
o., L
tdM
ing-
Hui
, Che
n(24
%),
Guo
Yin
g X
un, C
hen(
22%
), Ji
an-H
au, C
hen(
16%
), Ji
an-H
ong,
C
hen(
15%
)
Yong
-Yua
n In
vest
men
t Co.
, Lrd
Zhon
g-H
uo, W
u(27
%),
Zhon
g-Ji
an, W
u(25
%),
Wu
Jun
Jie
Cha
ritab
le F
ound
atio
n(25
%),
Boa
-H
ui, W
u(8.
5%),
Man
-Hui
, Wu(
8.5%
), M
ei-X
iang
, Zhe
n(3%
), A
i-Gui
, Hua
ng(3
%)
Jiou
-Fu
Inve
stm
ent C
o., L
tdC
hao-
Yuan
, Zhe
ng(5
0%),
Hon
g M
iao
Yu, C
heng
(24.
5%),
Li-L
ing,
Zhe
ng(6
%),
Bi-H
uei,
Zhen
g(3.
5%),
Tai-B
o In
vest
men
t Co.
, Ltd
Ping
-Zhi
, Wu(
21%
), Pi
ng-Y
uan,
Wu(
21%
), Ji
an-D
e, W
u(19
%),
Wei
-De,
Wu(
19%
), Ze
ng Z
hao
Mei
, Wu(
9%),
Su-M
ei, H
uang
(9%
), C
heng
-Ta
Inve
stm
ent C
o., L
td(1
%)
Che
ng-L
ong
Inve
stm
ent C
o., L
tdY
ing-
Zhi,
Zhua
ng(2
7%),
Yin
g-N
an, Z
huan
g(26
%),
Che
n M
ei Y
u, Z
huan
g(15
%),
Ling
Jin
g Zh
i, Zh
uang
(15%
), Yu
n-D
a, Z
huan
g(4%
), Yu
n-Zh
en, Z
huan
g(4%
), Zh
i-Jin
,Zhu
ang(
2%),
Tina
-Ya,
Zh
uang
(2%
), Yu
-Xua
n, Z
huan
g(2%
), M
ing-
Xua
n, Z
huan
g(3%
)
Che
ng-D
a In
vest
men
t Co.
, Ltd
Wei
-De,
Wu(
23%
), Ji
an-D
e, W
u(23
%),
Ping
-Zhi
, Wu(
23%
), Pi
ng-Y
uan,
Wu(
23%
)
Gua
ng-W
ei In
vest
men
t Co.
, Ltd
Yin
g-Zh
i, Zh
uang
(26%
), Y
ing-
Nan
, Zhu
ang(
26%
), C
hen
Mei
Yu,
Zhu
ang(
10%
), Li
ng J
ing
Zhi,
Zhua
ng(1
0%),
Yun-
Da,
Zhu
ang(
7%),
Yun-
Zhen
, Zhu
ang(
7%),
Zhi-J
in,Z
huan
g(4%
), Ti
na-Y
a,
Zhua
ng(3
%),
Yu-X
uan,
Zhu
ang(
4%),
Min
g-X
uan,
Zhu
ang(
3%)
Maj
or sh
areh
olde
rs o
f the
inst
itutio
nal s
hare
hold
ers
12.
31.2
012
Name of juridical persons
Name of shareholders
Major shareholders of the juridical persons
Tai-B
o In
vest
men
t Co.
, Ltd
.C
hen-
Da
Inve
stm
ent C
o., L
td.
Wei
-De,
Wu(
23%
), Ji
an-D
e, W
u(23
%),
Ping
-Zhi
, Wu(
23%
), Pi
ng-Y
uan,
Wu(
23%
)
Yong
-Yua
n In
vest
men
t Co.
, Lrd
Wu
Jun
Jie
Cha
ritab
le F
ound
atio
nN
one
Ava
ilabl
e
Maj
or sh
areh
olde
rs o
f the
maj
or sh
areh
olde
rs th
at a
re ju
ridi
cal p
erso
ns 1
2.31
.201
1
16
Mee
t One
of t
he F
ollo
wing
Pro
fess
iona
l Qua
lifica
tion
Requ
irem
ents
, Tog
ethe
r wi
th a
t Lea
st F
ive Y
ears
Wor
k Ex
peri
ence
Inde
pend
ence
Cri
teri
a(No
te)
Num
ber o
f Ot
her P
ublic
Co
mpa
nies
in
Whi
ch th
e In
divi
dual
is Co
ncur
rent
ly
Serv
ing
as an
In
depe
nden
t Di
recto
r
An
Instr
ucto
r or H
ighe
r Po
sitio
n in
a D
epar
tmen
t of
Com
mer
ce, L
aw, F
inan
ce,
Acc
ount
ing,
or O
ther
A
cade
mic
Dep
artm
ent R
elat
ed
to th
e Bus
ines
s Nee
ds o
f the
Co
mpa
ny in
a Pu
blic
or
Priv
ate J
unio
r Col
lege
, Co
llege
or U
nive
rsity
A Ju
dge,
Publ
ic P
rose
cuto
r, A
ttorn
ey, C
ertif
ied
Publ
ic
Acc
ount
ant,
or O
ther
Pro
fess
iona
l or
Tec
hnic
al S
peci
alist
Who
has
Pa
ssed
a N
atio
nal E
xam
inat
ion
and
been
Aw
arde
d a C
ertif
icat
e in
a Pro
fess
ion
Nec
essa
ry fo
r the
Bu
sines
s of t
he C
ompa
ny
Hav
e Wor
k Ex
perie
nce
in th
e Are
as o
f Co
mm
erce
, Law
, Fi
nanc
e, or
Acc
ount
ing,
or
Oth
erw
ise N
eces
sary
fo
r the
Bus
ines
s of t
he
Com
pany
12
34
56
78
910
Cha
irman
Hon
g-Ya
o In
vestm
ent
Co.,
Ltd
Na-
Tian
, Zh
uang
Vice
Cha
irman
Fu-S
heng
D
evel
opm
ent
Co.,
Ltd
Min
g-H
ui,
Zhen
Man
agin
g D
irect
orBo
-Min
g,
Hao
XX
XX
XX
0
Man
agin
g D
irect
or
Yong
-Yua
n In
vestm
ent
Co.,
Ltd.
Zhou
ng-H
uo
Wu
Dire
ctor
Jiou-
Fu
Inve
stmen
t Co
., Lt
d.Li
-Lin
g,
Zhen
g
Dire
ctor
Tai-B
o In
vestm
ent
Co.,
Ltd
Jian-
De,
Wu
Prof
essi
onal
qua
lifica
tions
and
inde
pend
ence
ana
lysi
s of d
irec
tors
and
supe
rvis
ors
12.
31.2
011
Title & NameCriteria
Prince Housing & Development Corp . Annual Report 2012
17
Mee
t One
of t
he F
ollo
wing
Pro
fess
iona
l Qua
lifica
tion
Requ
irem
ents
, Tog
ethe
r wi
th a
t Lea
st F
ive Y
ears
Wor
k Ex
peri
ence
Inde
pend
ence
Cri
teri
a(No
te)
Num
ber o
f Ot
her P
ublic
Co
mpa
nies
in
Whi
ch th
e In
divi
dual
is Co
ncur
rent
ly
Serv
ing
as an
In
depe
nden
t Di
recto
r
An
Instr
ucto
r or H
ighe
r Po
sitio
n in
a D
epar
tmen
t of
Com
mer
ce, L
aw, F
inan
ce,
Acc
ount
ing,
or O
ther
A
cade
mic
Dep
artm
ent R
elat
ed
to th
e Bus
ines
s Nee
ds o
f the
Co
mpa
ny in
a Pu
blic
or
Priv
ate J
unio
r Col
lege
, Co
llege
or U
nive
rsity
A Ju
dge,
Publ
ic P
rose
cuto
r, A
ttorn
ey, C
ertif
ied
Publ
ic
Acc
ount
ant,
or O
ther
Pro
fess
iona
l or
Tec
hnic
al S
peci
alist
Who
has
Pa
ssed
a N
atio
nal E
xam
inat
ion
and
been
Aw
arde
d a C
ertif
icat
e in
a Pro
fess
ion
Nec
essa
ry fo
r the
Bu
sines
s of t
he C
ompa
ny
Hav
e Wor
k Ex
perie
nce
in th
e Are
as o
f Co
mm
erce
, Law
, Fi
nanc
e, or
Acc
ount
ing,
or
Oth
erw
ise N
eces
sary
fo
r the
Bus
ines
s of t
he
Com
pany
12
34
56
78
910
Dire
ctor
Chen
g-Lo
ng
Inve
stmen
t Co
., Lt
d.Yi
ng-Z
hi,
Zhua
ng
Dire
ctor
Chen
g-Ta
In
vestm
ent
Co.,
Ltd.
Pien
-Chi
, Wu
Dire
ctor
Zeng
Zha
u M
ei, W
uX
XX
XX
XX
0
Dire
ctor
Bo-Y
i, H
oX
XX
XX
0
Dire
ctor
Zhao
-Wen
, H
uang
XX
XX
XX
XX
0
Dire
ctor
Zhen
-Qin
, Ch
enX
XX
XX
XX
XX
X0
Dire
ctor
Jing-
Xin
, Ch
enX
XX
XX
XX
XX
0
Dire
ctor
Hon
g-Ya
n,
Zhua
ngX
XX
XX
XX
XX
X0
Dire
ctor
Jun-
Chen
g,
Kuo
XX
XX
XX
XX
X0
Supe
rvis
or
Gua
ng-W
ei
Inve
stmen
t Co
., Lt
dYi
ng-N
a, Zh
uang
Supe
rvis
orD
a-X
iong
, X
uX
XX
XX
XX
XX
X0
Title & NameCriteria
18
Not
e: P
leas
e tic
k th
e co
rres
pond
ing
boxe
s if
dire
ctor
s or
sup
ervi
sors
hav
e be
en a
ny o
f the
follo
win
g du
ring
the
two
year
s pr
ior t
o be
ing
elec
ted
or d
urin
g th
e te
rm o
f off
ice.
1. N
ot a
n em
ploy
ee o
f the
Com
pany
or a
ny o
f its
aff
iliat
es.
2. N
ot a
dire
ctor
or s
uper
viso
r of t
he C
ompa
ny o
r any
of i
ts a
ffili
ates
. The
sam
e do
es n
ot a
pply
, how
ever
, in
case
s w
here
the
pers
on is
an
inde
pend
ent
dire
ctor
of t
he C
ompa
ny, i
ts p
aren
t com
pany
, or a
ny s
ubsi
diar
y in
whi
ch th
e C
ompa
ny h
olds
, dire
ctly
or i
ndire
ctly
, mor
e th
an 5
0% o
f the
vot
ing
shar
es.
3. N
ot a
nat
ural
-per
son
shar
ehol
der w
ho h
olds
sha
res,
toge
ther
with
thos
e he
ld b
y th
e pe
rson
’s s
pous
e, m
inor
chi
ldre
n, o
r hel
d by
the
pers
on u
nder
ot
hers
’ nam
es, i
n an
agg
rega
te a
mou
nt o
f 1%
or m
ore
of th
e to
tal n
umbe
r of o
utst
andi
ng s
hare
s of
the
Com
pany
or r
anki
ng in
the
top
10 in
hol
ding
s.4.
Not
a s
pous
e, re
lativ
e w
ithin
the
seco
nd d
egre
e of
kin
ship
, or l
inea
l rel
ativ
e w
ithin
the
fifth
deg
ree
of k
insh
ip, o
f any
of t
he p
erso
ns in
the
prec
edin
g th
ree
subp
arag
raph
s.5.
Not
a d
irect
or, s
uper
viso
r, or
em
ploy
ee o
f a c
orpo
rate
sha
reho
lder
that
dire
ctly
hol
ds 5
% o
r mor
e of
the
tota
l num
ber o
f out
stan
ding
sha
res
of th
e C
ompa
ny o
r tha
t hol
ds s
hare
s ra
nkin
g in
the
top
five
in h
oldi
ngs.
6. N
ot a
dire
ctor
, sup
ervi
sor,
offic
er, o
r sha
reho
lder
hol
ding
5%
or m
ore
of th
e sh
are,
of a
spe
cifie
d co
mpa
ny o
r ins
titut
ion
that
has
a fi
nanc
ial o
r bu
sine
ss re
latio
nshi
p w
ith th
e C
ompa
ny.
7. N
ot a
pro
fess
iona
l ind
ivid
ual w
ho, o
r an
owne
r, pa
rtner
, dire
ctor
, sup
ervi
sor,
or o
ffic
er o
f a s
ole
prop
rieto
rshi
p, p
artn
ersh
ip, c
ompa
ny, o
r ins
titut
ion
that
, pro
vide
s co
mm
erci
al, l
egal
, fin
anci
al, a
ccou
ntin
g se
rvic
es o
r con
sulta
tion
to th
e C
ompa
ny o
r to
any
affil
iate
of t
he C
ompa
ny, o
r a s
pous
e th
ereo
f.8.
Not
hav
ing
a m
arita
l rel
atio
nshi
p, o
r a re
lativ
e w
ithin
the
seco
nd d
egre
e of
kin
ship
to a
ny o
ther
dire
ctor
of t
he C
ompa
ny.
9. N
ot b
een
a pe
rson
of a
ny c
ondi
tions
def
ined
in A
rticl
e 30
of t
he C
ompa
ny L
aw.
10. N
ot a
gov
ernm
enta
l, ju
ridic
al p
erso
n or
its
repr
esen
tativ
e as
def
ined
in A
rticl
e 27
of t
he C
ompa
ny L
aw.
Prince Housing & Development Corp . Annual Report 2012
19
Title
Nam
eDa
teEf
fecti
veSh
areh
oldi
ngSp
ouse
& M
inor
Sh
areh
oldi
ngSh
areh
oldi
ng
by N
omin
eeAr
rang
emen
tEx
perie
nce(
Educ
ation
)Ot
her P
ositi
onM
anag
ers w
ho ar
e Spo
uses
or
With
in T
wo D
egre
es of
Kin
ship
Shar
es%
Shar
es%
Shar
es%
Title
Nam
eRe
latio
n
Gene
ral
Man
ager
Min
g-Fa
n, X
ie07
.05.
2010
59,9
500.
01%
24,4
590.
00%
00
Mas
ter o
f Civ
il En
gine
erin
g,Ta
mKa
ng U
nive
rsity
Chair
man
of C
heng
-Shi
Co
nstra
ction
Co.
, Ltd
and
Prin
ce S
ecur
ity C
o., L
td.
None
None
None
Assis
tant V
ice P
resid
ent
of S
ecre
tary
Shen
g-W
ei, M
ai09
.01.
2010
00
561
0.00
%0
0M
aster
of C
ivil
Engi
neer
ing,
Natio
nal C
hung
Hsin
g Un
iver
sity
Dire
ctor o
f Prin
ce S
ecur
ity
Prin
ceNo
neNo
neN
one
Ass
ista
nt V
ice
Pres
iden
t of S
ales
Wen
-Zhe
n, Q
iu09
.01.
2010
43,3
500.
00%
00
00
Dept
of A
rchi
tectu
re,
Natio
nal T
aiwan
Uni
versi
ty o
f Sc
ience
& T
echn
olog
y
Dire
ctor o
f Prin
ce S
ecur
ity
Co.,
Ltd
None
None
Non
e
Man
ager
of S
ales
ШYi
ng-J
ie, Z
huan
g09
.01.
2010
110,
000
0.01
%0
00
0N
atio
nal T
aipe
i Col
lege
of
Busin
ess
Non
eNo
neNo
neN
one
Ass
istan
t Man
ager
of
Land
Dev
elop
men
tX
i-Fen
, Zha
ng01
.01.
2010
00
00
00
Mas
ter o
f Sci
ence
M
anag
emen
t,N
atio
nal C
hiao
Tun
g U
nive
rsity
Dire
ctor
of P
rince
Rea
l Es
tate
App
raisa
l Co.
, Ltd
None
None
Non
e
Ass
istan
t M
anag
er o
f Des
ign
De-
Ju, Y
an01
.01.
2010
00
00
00
Mas
ter o
f Arc
hite
ctur
e,Ch
ung
Yuan
Chr
istia
n
Uni
vers
ityN
one
None
None
Non
e
Man
ger o
f Eng
inee
rX
iao-
Yu, J
iang
09.0
1.20
100
00
00
0N
atio
nal T
aiw
an U
nive
rsity
of
Scie
nce &
Tec
hnol
ogy
Dire
ctor
of P
rince
Sec
urity
Co
., Lt
dNo
neNo
neN
one
Man
ager
of
Adm
inist
rativ
eJu
n-Ch
eng,
Kuo
09.0
1.20
100
00
00
0D
ept o
f Arc
hite
ctur
e, H
uaFa
n U
nive
rsity
Dire
ctor
of T
ime S
quar
e In
tern
atio
nal C
o., L
td.
None
None
Non
e
Man
ager
of F
inan
ceJu
n-Li
ang
Lin
09.0
1.20
107,
896
0.00
%0
00
0U
nive
rsity
of S
outh
Aus
tralia
Supe
rviso
r of P
rince
Util
ity
Co.,
Ltd
None
None
Non
e
Man
ager
of A
ccou
ntin
gD
a-Ch
eng,
Dai
07.0
1.20
063,
372
0.00
%0
00
0D
ept o
f Acc
ount
ing,
N
atio
nal C
heng
Kun
g U
nive
rsity
Chai
rman
of J
in-Y
I-Xin
g Pl
ywoo
d co
., Lt
dNo
neNo
neN
one
Juni
or M
anag
er o
f IT
Ken
g-W
ang,
Che
n09
.01.
2010
00
00
00
MBA
.N
atio
nal T
aiw
an U
nive
rsity
Non
eNo
neNo
neN
one
Man
ager
of P
lann
ing
and
Stra
tegy
Jian-
Ying
, Wu
01.0
1.20
100
00
00
0M
BA,
Geo
rge W
ashi
ngto
n U
nive
rsity
Chai
rman
of P
rince
Se
curit
y Co
., Lt
dNo
neNo
neN
one
3.2.
2 M
anag
emen
t Tea
m
20
Title
N
ame
Rem
uner
atio
nRa
tio of
total
rem
unera
tion (
A+B+
C+D)
to
net in
come
(%)
Rel
evan
t rem
uner
atio
n re
ceiv
ed b
y di
rect
ors w
ho a
re a
lso
empl
oyee
sRa
tio of
total
co
mpen
satio
n (A
+B+C
+D+E
+F+G
) to
net in
come
(%)
Comp
ensa
tion
paid
to dir
ector
s fro
m an
inve
sted
comp
any
other
than t
he
comp
any’s
su
bsidi
ary
Base
Comp
ensa
tion(
A)Se
veran
cePa
y(B)
Bonu
s to D
irecto
rs(C)
Allow
ance
s(D)
Salar
y, Bo
nuse
s, an
d Al
lowan
ces (
E)
Seve
rance
Pay (
F)Pr
ofit S
harin
g- E
mploy
ee B
onus
(G)
Exerc
isable
Emp
loyee
St
ock O
ption
s (H)
The
comp
any
Comp
anies
in
the
cons
olida
ted
finan
cial
statem
ents
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in
the
cons
olida
ted
finan
cial
statem
ents
The
comp
any
Comp
anies
in
the
cons
olida
ted
finan
cial
statem
ents
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in th
e co
nsoli
dated
fin
ancia
l stat
emen
tsTh
eco
mpan
y
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
tsCa
shSt
ock
Cash
Stoc
k
Chair
man
Hong
-Yao
Inve
stmen
t Co
., Lt
dRe
pres
entat
ive:
Na-T
ian, Z
huan
g
61,9
6261
,962
00
44,2
6444
,264
6,00
06,
000
6.28
%6.
28%
10,5
5810
,558
00
15,3
240
15,3
240
00
7.73
%7.
73%
None
Vice
Chair
man
Fu-S
heng
De
velo
pmen
t Co.
, Ltd
Repr
esen
tativ
e:M
ing-
Hui,
Zhen
Man
agin
gDi
recto
r
Jiou-
Fu In
vestm
ent
Co.,
Ltd.
Repr
esen
tativ
e:Li
-Lin
g, Z
heng
Man
agin
gDi
recto
rBo
-Min
g, H
ao
Man
agin
gDi
recto
r(e
nd o
n 5.
2.20
12)
Zhou
ng-Ji
an, W
u
Man
agin
gDi
recto
r(st
art o
n 6.
20.2
012)
Yong
-Yua
n In
vestm
ent
Co.,
Ltd
Repr
esen
tativ
e:Zh
oung
-Huo
, Wu
3.2.
3 R
emun
erat
ion
of D
irec
tors
, Sup
ervi
sors
, Pre
side
nt, a
nd V
ice
Pres
iden
tR
emun
erat
ion
of D
irec
tors
The
num
ber c
ontin
ued
in e
ach
colu
mn
incl
uded
dire
ctor
s m
entio
ned
in p
age
19
Prince Housing & Development Corp . Annual Report 2012
21
Title
N
ame
Rem
uner
atio
nRa
tio of
total
rem
unera
tion (
A+B+
C+D)
to
net in
come
(%)
Rel
evan
t rem
uner
atio
n re
ceiv
ed b
y di
rect
ors w
ho a
re a
lso
empl
oyee
sRa
tio of
total
co
mpen
satio
n (A
+B+C
+D+E
+F+G
) to
net in
come
(%)
Comp
ensa
tion
paid
to dir
ector
s fro
m an
inve
sted
comp
any o
ther
than t
he
comp
any’s
su
bsidi
ary
Base
Comp
ensa
tion(
A)Se
veran
cePa
y(B)
Bonu
s to D
irecto
rs(C)
Allow
ance
s(D)
Salar
y, Bo
nuse
s, an
d Al
lowan
ces (
E)
Seve
rance
Pay (
F)Pr
ofit S
harin
g- E
mploy
ee B
onus
(G)
Exerc
isable
Emp
loyee
St
ock O
ption
s (H)
The
comp
any
Comp
anies
in
the
cons
olida
ted
finan
cial
statem
ents
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in
the
cons
olida
ted
finan
cial
statem
ents
The
comp
any
Comp
anies
in
the
cons
olida
ted
finan
cial
statem
ents
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in th
e co
nsoli
dated
fin
ancia
l stat
emen
tsTh
eco
mpan
y
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
ts
The
comp
any
Comp
anies
in the
co
nsoli
dated
fin
ancia
l sta
temen
tsCa
shSt
ock
Cash
Stoc
k
Dire
ctor
Tai-B
o In
vestm
ent
Co.,
Ltd
Repr
esen
tativ
e:Jia
n-De
, Wu
Dire
ctor
Chen
g-Lo
ng
Inve
stmen
t Co.
, Ltd
.Re
pres
entat
ive:
Ying
-Zhi
, Zhu
ang
Dire
ctor
Chen
g-Ta
Inve
stmen
t Co
., Lt
d.Re
pres
entat
ive:
Pien
-Chi
, Wu
Dire
ctor
Zeng
Zha
u M
ei, W
u
Dire
ctor
Bo-Y
i, Ho
Dire
ctor
Zhao
-Wen
, Hua
ng
Dire
ctor
Zhen
-Qin
, Che
n
Dire
ctor
Jing-
Xin,
Che
n
Dire
ctor
Hong
-Yan
, Zhu
ang
Dire
ctor
Jun-
Chen
g, K
uo
22
Bra
cket
Nam
e of
Dir
ecto
rs
Tota
l of (
A+B
+C+D
)To
tal o
f (A
+B+C
+D+E
+F+G
)
The
com
pany
Com
pani
es in
the
cons
olid
ated
fin
anci
al s
tate
men
tsTh
e co
mpa
nyTh
e co
mpa
ny
Und
er N
T$ 2
,000
,000
Non
eN
one
Non
eN
one
NT$
2,00
0,00
0 ~
NT$
5,00
0,00
0
Chen
g-Lo
ng In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: Y
ing-
Zhi,
Zhua
ng)
Jiou-
Fu In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: L
i-Lin
g, Z
heng
)Ch
eng-
Ta In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: P
ien-C
hi, W
u)Ta
i-Bo
Inve
stmen
t Co.
, Ltd
(Rep
rese
ntati
ve: J
ian-D
e, W
u)Yo
ng-Y
uan
Inve
stmen
t Co.
, Lrd
(Rep
rese
ntati
ve: Z
houn
g-Hu
o, W
u)Ze
ng Z
hau
Mei,
Wu
Hong
-Yan
, Zhu
ang
Jing-
Xin,
Che
nBo
-Yi,
Ho,
Zhen
-Qin
, Che
nZh
ao-W
en, H
uang
,Ju
n-Ch
eng,
Kuo
Chen
g-Lo
ng In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: Y
ing-
Zhi,
Zhua
ng)
Jiou-
Fu In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: L
i-Lin
g, Z
heng
)Ch
eng-
Ta In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: P
ien-C
hi, W
u)Ta
i-Bo
Inve
stmen
t Co.
, Ltd
(Rep
rese
ntati
ve: J
ian-D
e, W
u)Yo
ng-Y
uan
Inve
stmen
t Co.
, Lrd
(Rep
rese
ntati
ve: Z
houn
g-Hu
o, W
u)Ze
ng Z
hau
Mei,
Wu
Hong
-Yan
, Zhu
ang
Jing-
Xin,
Che
nBo
-Yi,
Ho,
Zhen
-Qin
, Che
nZh
ao-W
en, H
uang
Jun-
Chen
g, K
uo
Chen
g-Lo
ng In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: Y
ing-
Zhi,
Zhua
ng)
Jiou-
Fu In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: L
i-Lin
g, Z
heng
)Ch
eng-
Ta In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: P
ien-C
hi, W
u)Ta
i-Bo
Inve
stmen
t Co.
, Ltd
(Rep
rese
ntati
ve: J
ian-D
e, W
u)Yo
ng-Y
uan
Inve
stmen
t Co.
, Lrd
(Rep
rese
ntati
ve: Z
houn
g-Hu
o,
Wu)
Zeng
Zha
u M
ei, W
uHo
ng-Y
an, Z
huan
gJin
g-Xi
n, C
hen
Bo-Y
i, Ho
Zhen
-Qin
, Che
nZh
ao-W
en, H
uang
Chen
g-Lo
ng In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: Y
ing-
Zhi,
Zhua
ng)
Jiou-
Fu In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: L
i-Lin
g, Z
heng
)Ch
eng-
Ta In
vestm
ent C
o., L
td.
(Rep
rese
ntati
ve: P
ien-C
hi, W
u)Ta
i-Bo
Inve
stmen
t Co.
, Ltd
(Rep
rese
ntati
ve: J
ian-D
e, W
u)Yo
ng-Y
uan
Inve
stmen
t Co.
, Lrd
(Rep
rese
ntati
ve: Z
houn
g-Hu
o,
Wu)
Zeng
Zha
u M
ei, W
uHo
ng-Y
an, Z
huan
gJin
g-Xi
n, C
hen
Bo-Y
i, Ho
Zhen
-Qin
, Che
nZh
ao-W
en, H
uang
NT$
5,00
0,00
0 ~
NT$
10,0
00,0
00N
one
Non
eJu
n-C
heng
, Kuo
Jun-
Che
ng, K
uoN
T$10
,000
,000
~ N
T$15
,000
,000
N
one
Non
eN
one
Non
e
NT$
15,0
00,0
00 ~
NT$
30,0
00,0
00Fu
-She
ng D
evelo
pmen
t Co.
, Ltd
(Rep
rese
ntati
ve: M
ing-
Hui,
Zhen
)Bo
-Min
g, H
ao
Fu-S
heng
Dev
elopm
ent C
o., L
td(R
epre
sent
ative
: Min
g-Hu
i, Zh
en)
Bo-M
ing,
Hao
Fu-S
heng
Dev
elopm
ent C
o., L
td(R
epre
sent
ative
: Min
g-Hu
i, Zh
en)
Bo-M
ing,
Hao
Fu-S
heng
Dev
elopm
ent C
o., L
td(R
epre
sent
ative
: Min
g-Hu
i, Zh
en)
Bo-M
ing,
Hao
NT$
30,0
00,0
00 ~
NT$
50,0
00,0
00on
g-Ya
o In
vest
men
t Co.
, Ltd
(Rep
rese
ntat
ive:
Na-
Tian
, Zhu
ang)
ong-
Yao
Inve
stm
ent C
o., L
td(R
epre
sent
ativ
e: N
a-Ti
an,
Zhua
ng)
Bo-M
ing,
Hao
Bo-M
ing,
Hao
NT$
50,0
00,0
00 ~
NT$
100,
000,
000
Non
eN
one
Non
eN
one
Ove
r NT$
100,
000,
000
Non
eN
one
Non
eN
one
Tota
l16
1616
16
Ran
ge o
f Pay
roll
Prince Housing & Development Corp . Annual Report 2012
23
Title
Nam
e
Rem
uner
atio
nR
atio
of t
otal
re
mun
erat
ion
(A+B
+C)
to n
et in
com
e (%
)
Com
pens
ation
pa
id to
supe
rviso
rs fro
m an
inve
sted
com
pany
oth
er
than
the c
ompa
ny’s
subs
idiar
y
Bas
e C
ompe
nsat
ion(
A)
Bon
us to
Sup
ervi
sors
(B)
Allo
wan
ces(
C)
The
com
pany
Com
pani
es
in th
e con
solid
ated
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
solid
ated
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
solid
ated
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
solid
ated
finan
cial
statem
ents
Supe
rviso
r
Gua
ng-W
ei In
vest
men
t C
o., L
tdR
epre
sent
ativ
e:Y
ing-
Na,
Zhu
ang
8080
3,95
73,
957
480
480
0.22
%0.
22%
Non
e
Supe
rviso
rD
a-X
iong
, Xu
Rem
uner
atio
n of
Sup
ervi
sors
Bra
cket
Nam
e of
Sup
ervi
sors
Tota
l of (
A+B
+C)
The
com
pany
Com
pani
es in
the
cons
olid
ated
fin
anci
al s
tate
men
ts
Und
er N
T$ 2
,000
,000
Non
eN
one
NT$
2,00
0,00
0 ~
NT$
5,00
0,00
0Gu
ang-
Wei
Inve
stmen
t Co.
, Ltd
(Rep
rese
ntati
ve:Y
ing-
Na, Z
huan
g)、
Da-X
iong
, Xu
Guan
g-W
ei In
vestm
ent C
o., L
td(R
epre
sent
ative
:Yin
g-Na
, Zhu
ang)、
Da-X
iong
, Xu
NT$
5,00
0,00
0 ~
NT$
10,0
00,0
00N
one
Non
e
NT$
10,0
00,0
00 ~
NT$
15,0
00,0
00
Non
eN
one
NT$
15,0
00,0
00 ~
NT$
30,0
00,0
00N
one
Non
e
NT$
30,0
00,0
00 ~
NT$
50,0
00,0
00N
one
Non
e
Ove
r NT$
50,0
00,0
00N
one
Non
e
Tota
l2
2
24
Title
Nam
e
Sala
ry(A
)Se
vera
nce
Pay
(B)
Bon
uses
and
A
llow
ance
s (C
)Pr
ofit S
hari
ng E
mpl
oyee
Bon
us (D
)
Ratio
of t
otal
co
mpe
nsat
ion
(A+B
+C+D
) to
net
inco
me(
%)
Exer
cisab
le Em
ploy
ee S
tock
O
ptio
nsCo
mpe
nsati
on p
aid
to th
e pre
siden
t and
vi
ce p
resid
ent f
rom
an
inve
sted
com
pany
ot
her t
han
the
com
pany
’s su
bsid
iary
The
com
pany
Com
pani
es
in th
e con
sol
idate
d
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
sol
idate
d
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
sol
idate
d
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
sol
idate
d
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
sol
idate
d
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
sol
idate
d
finan
cial
statem
ents
The
com
pany
Com
pani
es
in th
e con
sol
idate
d
finan
cial
statem
ents
Cas
hSt
ock
Cash
Stoc
k
Gen
eral
M
anag
erM
ing-
Fan,
Xie
2,79
32,
793
00
19,6
2519
,625
4,79
80
4,79
80
1.52
%1.
52%
00
Non
e
Com
pens
atio
n of
Pre
side
nt a
nd V
ice
Pres
iden
t
Bra
cket
Nam
e of
Sup
ervi
sors
The
com
pany
Com
pani
es in
the
cons
olid
ated
fin
anci
al s
tate
men
tsU
nder
NT$
2,0
00,0
000
0
NT$
2,00
0,00
0 ~
NT$
5,00
0,00
00
0
NT$
5,00
0,00
0 ~
NT$
10,0
00,0
000
0
NT$
10,0
00,0
00 ~
NT$
15,0
00,0
00
00
NT$
15,0
00,0
00 ~
NT$
30,0
00,0
00M
ing-
Fan,
Xie
Min
g-Fa
n, X
ie
NT$
30,0
00,0
00 ~
NT$
50,0
00,0
000
0
NT$
50,0
00,0
00 ~
NT$
100,
000,
000
00
Ove
r NT$
100,
000,
000
00
Tota
l1
1
Uni
t: N
T$ th
ousa
nds
Prince Housing & Development Corp . Annual Report 2012
25
Title
Nam
e
Em
ploy
ee B
onus
- in
Stoc
k(F
air
Mar
ket
Valu
e)
Em
ploy
ee B
onus
- in
Cas
hTo
tal
Rat
io o
f Tot
al
Am
ount
to N
et
Inco
me
(%)
Con
sulta
ntSe
nior
Con
sulta
ntG
ao-H
ui, Z
heng
016
,709
16,7
090.
94%
Man
agin
g D
irect
orB
o-M
ing,
Hao
Exe
cutiv
eO
ffice
rs
Gen
eral
Man
ager
Min
g-Fa
n, X
ie
Ass
ista
nt V
ice
Pres
iden
tSh
eng-
Wei
, Mai
Ass
ista
nt V
ice
Pres
iden
tW
en-Z
hen,
Qiu
Man
ager
Da-
Che
ng, D
a
Man
ager
Jun-
Lian
g Li
n
Man
ager
Jun-
Che
ng, K
uo
Man
ager
Jian
-Yin
g, W
u
Man
ager
Yin
g-Ji
e, Z
huan
g
Man
ager
Xia
o-Yu
, Jia
ng
Ass
ista
nt M
anag
erX
i-Fen
, Zha
ng
Ass
ista
nt M
anag
erD
e-Ju
, Yan
Juni
or M
anag
er
Ken
g-W
ang,
Che
n
Uni
t: N
T$ th
ousa
nds
26
3.2.4 Comparison of Remuneration for Directors, Supervisors, Presidents and Vice Presidents in the Most Recent Two Fiscal Years and Remuneration Policy for Directors, Supervisors, Presidents and Vice Presidents
A. The ratio of total remuneration paid by the company and by all companies included in the consolidated financial statements for the most recent two fiscal years to directors, supervisors, presidents and vice presidents of the Company, to the net income.
Year
Total remuneration paid to directors, supervisors, presidents and vice
presidents
Ratio of total remuneration paid to directors, supervisors, presidents and
vice presidents to net income (%)
The companyCompanies in
the consolidated financial statements
The companyCompanies in
the consolidated financial statements
2011 170,037 170,797 7.35% 7.38%
2012 169,841 169,841 9.50% 9.50%
Unit: NT$ thousands
Prince Housing & Development Corp . Annual Report 2012
27
3.3
Impl
emen
tatio
n of
Cor
pora
te G
over
nanc
e3.
3.1
Boa
rd o
f Dir
ecto
rs
A to
tal o
f five
mee
tings
of t
he b
oard
of d
irect
ors
wer
e he
ld in
201
2. D
irect
or a
nd s
uper
viso
r atte
ndan
ce w
as a
s fo
llow
s:
Boa
rd o
f Dir
ecto
rs M
eetin
g St
atus
Title
Nam
eA
tten
danc
e in
Pe
rson
(B)
By
Prox
yA
tten
danc
e ra
te
(%) [
B/A
]R
epre
sent
ativ
eR
emar
ks
Cha
irman
Hon
g-Ya
o In
vest
men
t Co.
Ltd
50
100%
Na-
Tian
Zhu
ang
Vic
e C
hairm
anFu
-She
ng D
evel
opm
ent C
o. L
td5
010
0%M
ing-
Hui
Che
nM
anag
ing
Dire
ctor
Bo-
Min
g H
ou5
010
0%M
anag
ing
Dire
ctor
Zhon
g-Ja
n w
u0
00%
Res
ign
in 2
012.
5.2
Man
agin
g D
irect
orYo
ng-Y
uan
Inve
stm
ent C
o. L
td3
010
0%Zh
ong
He
Wu
Ass
ume
in
2012
.6.2
0M
anag
ing
Dire
ctor
Jiu-
Fu In
vest
men
t Co.
Ltd
50
100%
Li-L
ing
Zhen
gD
irect
orTa
i-Bo
Inve
stm
ent C
o. L
td3
260
%Ji
an-D
e W
uD
irect
orZh
ao-M
ei W
u Ze
ng2
340
%D
irect
orC
eng-
Long
Inve
stm
ent C
o. L
td3
260
%Y
ing-
Zhi Z
huan
gD
irect
orC
heng
-Da
Inve
stm
ent C
o. L
td3
260
%Pi
ng-Z
hi W
uD
irect
orB
o-Y
i Hou
5
010
0%D
irect
orC
hao-
Wen
Hua
ng5
010
0%D
irect
orR
en-Q
in C
hen
50
100%
Dire
ctor
Jing
-Xin
g C
hen
50
100%
Dire
ctor
Hon
g-Ya
n Jh
uang
32
60%
Dire
ctor
Jun-
Che
ng G
uo5
010
0%
Oth
er m
entio
nabl
e ite
ms:
1. If
ther
e ar
e th
e ci
rcum
stan
ces
refe
rred
to in
Arti
cle
14-3
of S
ecur
ities
and
Exc
hang
e A
ct a
nd re
solu
tions
of t
he d
irect
ors’
mee
tings
obj
ecte
d to
by
Inde
pend
ent D
irect
ors
or s
ubje
ct to
qua
lified
opi
nion
and
reco
rded
or d
ecla
red
in w
ritin
g, th
e da
tes
of m
eetin
gs, s
essi
ons,
con
tent
s of
mot
ions
, all
in
depe
nden
ts’ o
pini
on a
nd th
e C
ompa
ny’s
resp
onse
to in
depe
nden
t dire
ctor
s’ o
pini
on s
houl
d be
spe
cifie
d: N
one
2. If
ther
e is
Dire
ctor
s’ a
void
ance
of m
otio
ns in
con
flict
of i
nter
est,
the
Dire
ctor
s’ n
ames
, con
tent
s of
mot
ions
, cau
ses
for a
void
ance
and
vot
ing
sh
ould
be
spec
ified
: Non
e
28
3. M
easu
res
take
n to
stre
ngth
en th
e fu
nctio
nalit
y of
the
Boa
rd: T
he B
oard
of D
irect
ors
has
esta
blis
hed
an A
udit
Com
mitt
ee a
nd a
Com
pens
atio
n
Com
mitt
ee to
ass
ist t
he B
oard
in c
arry
ing
out i
ts v
ario
us d
utie
s.
Not
e: W
hen
dire
ctor
s' an
d su
perv
isor
s' ar
e be
long
to ju
ridic
al p
erso
n sh
ell b
e sh
owed
the
com
pany
's na
me
and
repr
esen
tativ
e.N
ote:
(i)
If d
irect
or o
r sup
ervi
sor r
esig
ned
befo
re e
nd o
f yea
r, co
mpa
ny s
hall
show
dat
e in
not
e, a
nd a
ttend
ance
rate
(%) i
s at
tend
ant t
imes
of m
eetin
g in
in
cum
bent
per
iod.
(ii
) If
ther
e is
re-e
lect
ion
of d
irect
or a
nd s
uper
viso
r, co
mpa
ny s
hall
show
form
er, n
ew, r
eapp
oint
ed m
embe
r and
dat
e in
not
e.
A
ttend
ance
rate
(%) i
s at
tend
ant t
imes
of m
eetin
g in
incu
mbe
nt p
erio
d.
Prince Housing & Development Corp . Annual Report 2012
29
3.3.
2 A
udit
Com
mitt
ee o
r Att
enda
nce
of S
uper
viso
rs fo
r B
oard
Mee
tings
(I
) Aud
it C
omm
ittee
Mee
ting
Stat
us: N
ot a
pplic
able
.
(II)
Atte
ndan
ce o
f sup
ervi
sors
at t
he b
oard
mee
ting
A to
tal o
f five
Boa
rd o
f Dire
ctor
s m
eetin
gs a
nd th
ree
disc
harg
ed m
eetin
gs w
ere
held
in 2
011.
Inde
pend
ent d
irect
or a
ttend
ance
was
as
follo
ws:
Att
enda
nce
of su
perv
isor
s at t
he b
oard
mee
ting
Title
Nam
eA
tten
danc
e in
Per
son(
B)
Att
enda
nce
rate
(%) [
B/A
]R
epre
sent
ativ
eR
emar
ksSu
perv
isor
Gua
ng-W
ei In
vest
men
t Co.
Ltd
360
%Y
ing-
Nan
Zhu
ang
Supe
rvis
orD
a-X
iong
Xu
510
0%
Oth
er m
entio
nabl
e ite
ms:
I. C
ompo
sitio
n an
d R
espo
nsib
ilitie
s of
Sup
ervi
sors
:
We
have
2 s
uper
viso
rs a
nd n
o in
depe
nden
t dire
ctor
.
(I)
Com
mun
icat
ions
bet
wee
n su
perv
isor
s an
d th
e C
ompa
ny's
empl
oyee
s an
d sh
areh
olde
rs. I
f it i
s ne
cess
ary,
em
ploy
ees
and
shar
ehol
ders
hav
e
ad
equa
te a
cces
s to
the
supe
rvis
ors
for c
omm
unic
atio
ns.
(I
I) C
omm
unic
atio
ns b
etw
een
supe
rvis
ors
and
the
Com
pany
's C
hief
Inte
rnal
Aud
itor a
nd C
PA:
1. C
heif
audi
tor i
s to
hav
e th
e au
ditin
g re
port
subm
itted
to th
e su
perv
isor
s in
the
follo
win
g m
onth
upo
n th
e co
mpl
etio
n of
aud
it; a
lso,
the
chie
f au
dito
r is
to re
port
the
audi
t at t
he b
oard
mee
ting.
2. S
uper
viso
rs m
ay c
omm
unic
ate
with
the
CPA
if it
is n
eces
sary
.II
. If a
sup
ervi
sor e
xpre
sses
an
opin
ion
durin
g a
mee
ting
of th
e B
oard
of D
irect
ors,
the
date
s of
mee
tings
, ses
sion
s, c
onte
nts
of m
otio
ns, r
esol
utio
ns
of th
e di
rect
ors’
mee
tings
and
the
Com
pany
’s re
spon
se to
sup
ervi
sor’
s op
inio
n sh
ould
be
spec
ified
.
30
3.3.
3 C
orpo
rate
Gov
erna
nce
Exe
cutio
n St
atus
and
Dev
iatio
ns f
rom
“C
orpo
rate
Gov
erna
nce
Bes
t-Pr
actic
e Pr
inci
ples
for
T
WSE
/GT
SM L
iste
d C
ompa
nies
”
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e G
over
nanc
e Bes
t-Pra
ctice
Pr
incip
les fo
r TW
SE/G
TSM
Li
sted
Com
pani
es”
and
reas
ons
1. S
hare
hold
ing
Stru
ctur
e &
Sha
reho
lder
s’ R
ight
s(1
) M
etho
d of
han
dlin
g sh
areh
olde
r su
gges
tion
s or
co
mpl
aint
s
(2)
The
Com
pany
’s p
osse
ssio
n of
a l
ist
of m
ajor
sh
areh
olde
rs a
nd a
lis
t of
ulti
mat
e ow
ners
of
thes
e m
ajor
sha
reho
lder
s
(3)
Ris
k m
anag
emen
t mec
hani
sm a
nd “
firew
all”
bet
wee
n th
e C
ompa
ny a
nd it
s af
filia
tes
The
Com
pany
has
des
igna
ted
appr
opria
te d
epar
tmen
ts to
ha
ndle
sha
reho
lder
sug
gest
ions
or c
ompl
aint
s.
The
Fina
nce
& S
hare
d Se
rvic
es D
ivis
ion
is re
spon
sibl
e fo
r co
llect
ing
the
upda
ted
info
rmat
ion
of m
ajor
sha
reho
lder
s an
d th
e lis
t of u
ltim
ate
owne
rs o
f the
se m
ajor
sha
reho
lder
s.
Rul
es a
re m
ade
to s
trict
ly re
gula
te th
e ac
tiviti
es o
f tra
ding
, en
dors
emen
t an
d lo
ans
betw
een
the
Com
pany
and
its
af
filia
tes.
Als
o, w
e fo
llow
ed t
he “
Cri
teri
a of
Int
erna
l C
ontr
ol M
echa
nism
for
Pub
lic C
ompa
ny”
outli
ned
by
the
Fina
ncia
l Su
perv
isor
y C
omm
issi
on w
hen
draf
ting
the
guid
elin
es f
or t
he “
Supe
rvis
ion
and
gove
rnan
ce o
f su
bsid
iarie
s” in
ord
er to
impl
emen
t tot
al r
isk
cont
rol w
ith
resp
ect t
o su
bsid
iarie
s.
Non
e
2.
Com
posi
tion
and
Res
pons
ibili
ties
of t
he B
oard
of
Dire
ctor
s(1
) Ind
epen
dent
Dire
ctor
s
(2) R
egul
ar e
valu
atio
n of
CPA
s’ in
depe
nden
ce
The
Com
pany
has
fifte
en d
irect
ors
but n
o in
depe
nden
t di
rect
ors.
No
Aud
it C
omm
ittee
eva
luat
ion
of C
PA.
Prince Housing & Development Corp . Annual Report 2012
31
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e G
over
nanc
e Bes
t-Pra
ctice
Pr
incip
les fo
r TW
SE/G
TSM
Li
sted
Com
pani
es”
and
reas
ons
3. C
omm
unic
atio
n ch
anne
l with
sta
keho
lder
sTh
e C
ompa
ny h
as d
esig
nate
d ap
prop
riat
e de
part
men
ts,
such
as
Inve
stor
Rel
atio
ns, E
mpl
oyee
Wel
fare
Com
mitt
ee,
Cus
tom
er R
elat
ions
etc
., to
com
mun
icat
e w
ith st
akeh
olde
rs
as n
eede
d. F
urth
erm
ore,
the
cont
act i
nfor
mat
ion
prov
idin
g ac
cess
to
the
Com
pany
’s s
poke
sper
son
and
rele
vant
de
partm
ents
is a
vaila
ble
on th
e C
ompa
ny’s
web
site
.
Non
e
4. In
form
atio
n D
iscl
osur
e(1
) E
stab
lishm
ent
of a
cor
pora
te w
ebsi
te t
o di
sclo
se
info
rmat
ion
rega
rdin
g th
e C
ompa
ny’s
fin
anci
als,
bu
sine
ss a
nd c
orpo
rate
gov
erna
nce
stat
us
(2)
Oth
er i
nfor
mat
ion
disc
losu
re c
hann
els
(e.g
., m
aint
aini
ng a
n En
glis
h-la
ngua
ge w
ebsi
te, a
ppoi
ntin
g re
spon
sibl
e pe
ople
to h
andl
e in
form
atio
n co
llect
ion
and
disc
losu
re, a
ppoi
ntin
g sp
okes
pers
ons,
web
cast
ing
inve
stor
s co
nfer
ence
)
The
Com
pany
has
a w
ebsi
te (h
ttp://
ww
w.p
rince
.com
.tw/)
setu
p to
dis
clos
e in
form
atio
n re
gard
ing
the
Com
pany
’s
finan
cial
s, b
usin
ess
and
corp
orat
e go
vern
ance
sta
tus.
The
com
pany
has
des
igna
ted
appr
opria
te p
erso
ns to
ha
ndle
info
rmat
ion
colle
ctio
n an
d di
sclo
sure
and
als
o ha
s es
tabl
ishe
d a
spok
espe
rson
sys
tem
.W
ebsi
te: h
ttp://
ww
w.p
rince
.com
.tw
Non
e
5. O
pera
tions
of t
he C
ompa
ny’s
Nom
inat
ion
Com
mitt
ee,
Com
pens
atio
n C
omm
ittee
, or o
ther
com
mitt
ees
of th
e B
oard
of D
irect
ors
5. T
he C
ompa
ny s
et u
p th
e R
emun
erat
ion
Com
mitt
ee in
20
11.9
.30,
the
re h
ad b
een
four
tim
es m
eetin
gs u
ntil
2013
.5.1
5.
Exce
pt R
emun
erat
ion
Com
mitt
ee, c
orpo
rate
go
vern
ance
regu
latio
ns h
ave
been
dis
cuss
ing.
6.
If th
e C
ompa
ny h
as e
stab
lishe
d co
rpor
ate
gove
rnan
ce p
rinci
ples
bas
ed o
n “C
orpo
rate
Gov
erna
nce
Bes
t-Pra
ctic
e Pr
inci
ples
for T
WSE
/GTS
M L
iste
d
Com
pani
es”,
ple
ase
desc
ribe
any
disc
repa
ncy
betw
een
the
prin
cipl
es a
nd th
eir i
mpl
emen
tatio
n:
The
Com
pany
has
not
est
ablis
hed
corp
orat
e go
vern
ance
prin
cipl
es b
ased
on
“Cor
pora
te G
over
nanc
e B
est-P
ract
ice
Prin
cipl
es fo
r TW
SE/G
TSM
List
ed C
ompa
nies
”.
32
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e G
over
nanc
e Bes
t-Pra
ctice
Pr
incip
les fo
r TW
SE/G
TSM
Li
sted
Com
pani
es”
and
reas
ons
7.
Oth
er im
porta
nt in
form
atio
n to
faci
litat
e be
tter u
nder
stan
ding
of t
he C
ompa
ny’s
cor
pora
te g
over
nanc
e pr
actic
es (e
.g.,
empl
oyee
righ
ts, e
mpl
oyee
w
elln
ess,
inve
stor
rela
tions
, sup
plie
r rel
atio
ns, r
ight
s of
sta
keho
lder
s, d
irect
ors’
and
sup
ervi
sors
’ tra
inin
g re
cord
s, th
e im
plem
enta
tion
of ri
sk
m
anag
emen
t pol
icie
s an
d ris
k ev
alua
tion
mea
sure
s, th
e im
plem
enta
tion
of c
usto
mer
rela
tions
pol
icie
s, a
nd p
urch
asin
g in
sura
nce
for d
irect
ors
and
su
perv
isor
s):
(1)
Stat
us o
f em
ploy
ee ri
ghts
and
em
ploy
ee w
elln
ess:
Ple
ase
refe
r to
the
“Em
ploy
ees”
sec
tion
on p
ages
57
of th
is A
nnua
l Rep
ort.
(2)
Con
sum
er P
rote
ctio
n Po
licy:
The
com
pany
has
est
ablis
hed
serv
ice
cent
er to
pro
cess
bui
ldin
g m
aint
enan
ce, r
epai
r, co
mm
unity
saf
e an
d cl
ean
se
rvic
e.(3
) Th
e C
ompa
ny h
as p
urch
ased
D&
O in
sura
nce
for i
ts d
irect
ors
and
supe
rvis
ors
sinc
e ye
ar 2
006.
(4)
Dire
ctor
s’ a
nd s
uper
viso
rs’ t
rain
ing
reco
rds:
Title
Nam
eA
ssum
ed
Dat
eSt
udy
peri
odSp
onso
ring
O
rgan
izat
ion
Cou
rse
Trai
ning
ho
urs
Con
form
ing
to
Reg
ulat
ions
Rem
arks
From
To
Man
agin
g D
irect
orB
o-M
ing
Hou
2010
.06.
2420
12.5
.720
12.5
.7
Taiw
an
Cor
pora
te
Gov
erna
nce
Ass
ocia
tion
New
am
endm
ent
and
the
reso
lutio
n of
the
Com
pany
Act
3Ye
s
8.
If th
e C
ompa
ny h
as im
plem
ente
d a
self
corp
orat
e go
vern
ance
eva
luat
ion
or h
as a
utho
rized
any
oth
er p
rofe
ssio
nal o
rgan
izat
ion
to c
ondu
ct s
uch
an
ev
alua
tion,
the
eval
uatio
n re
sults
, maj
or d
efici
enci
es o
r sug
gest
ions
, and
impr
ovem
ents
are
sta
ted
as fo
llow
s: N
one
Not
e1: D
irect
or’ a
nd s
uper
viso
rs’ t
rain
ing
reco
rds:
The
com
pany
refe
rs to
the
rule
dec
lare
d by
TSE
C.
Not
e2: I
f co
mpa
ny’s
bus
ines
s is
in s
ecur
ities
, inv
estm
ent t
rust
and
adv
isor
y, o
r fu
ture
s, it
sha
ll sh
ow r
isk
man
agem
ent p
olic
y, s
tand
ards
for
ris
k
mea
surin
g an
d pr
otec
tion
of c
onsu
mer
and
clie
nts.
Not
e3: S
elf-
eval
uatio
n re
port
of c
orpo
rate
gov
erni
ng is
acc
ordi
ng it
em in
cor
pora
te g
over
ning
, eva
luat
ed a
nd s
tate
d by
com
pany
. It s
hall
repo
rt si
tuat
ion
of o
pera
tion
and
exec
utio
n in
eac
h ite
m s
epar
atel
y.
Prince Housing & Development Corp . Annual Report 2012
33
Mee
t One
of t
he F
ollo
wing
Pro
fess
iona
l Qua
lifica
tion
Requ
irem
ents
, Tog
ethe
r wi
th a
t Lea
st F
ive Y
ears
Wor
k Ex
peri
ence
Inde
pend
ence
Cri
teri
a(No
te)
Num
ber o
f Ot
her P
ublic
Co
mpa
nies
in
Whi
ch th
e In
divi
dual
is Co
ncur
rent
ly
Serv
ing
as an
In
depe
nden
t Di
recto
r
An
Instr
ucto
r or H
ighe
r Po
sitio
n in
a D
epar
tmen
t of
Com
mer
ce, L
aw, F
inan
ce,
Acc
ount
ing,
or O
ther
A
cade
mic
Dep
artm
ent R
elat
ed
to th
e Bus
ines
s Nee
ds o
f the
Co
mpa
ny in
a Pu
blic
or
Priv
ate J
unio
r Col
lege
, Co
llege
or U
nive
rsity
A Ju
dge,
Publ
ic P
rose
cuto
r, A
ttorn
ey, C
ertif
ied
Publ
ic
Acc
ount
ant,
or O
ther
Pro
fess
iona
l or
Tec
hnic
al S
peci
alist
Who
has
Pa
ssed
a N
atio
nal E
xam
inat
ion
and
been
Aw
arde
d a C
ertif
icat
e in
a Pro
fess
ion
Nec
essa
ry fo
r the
Bu
sines
s of t
he C
ompa
ny
Hav
e Wor
k Ex
perie
nce
in th
e Are
as o
f Co
mm
erce
, Law
, Fi
nanc
e, or
Acc
ount
ing,
or
Oth
erw
ise N
eces
sary
fo
r the
Bus
ines
s of t
he
Com
pany
12
34
56
78
910
Con
venr
tQ
ian,
Dai
XX
XX
XX
XX
XX
X3
Com
miss
ione
rSh
u-Fe
n, X
un X
XX
XX
XX
XX
XX
0
Com
miss
ione
rM
ei-H
ui, Q
iu X
XX
XX
XX
XX
XX
X2
Title & NameCriteria
1.3
.4 C
ompo
sitio
n, R
espo
nsib
ilitie
s and
Ope
ratio
ns o
f Com
pens
atio
n C
omm
ittee:
Rem
uner
atio
n co
mm
ittee
was
set
up
in S
ep 3
0, 2
011
with
3 c
omm
ittee
mem
bers
and
1 m
embe
r in
wai
ting
list.
Thei
r res
pons
ibili
ties
are
esta
blis
hing
th
e re
gula
tions
of
rem
uner
atio
n an
d pe
rfor
man
ce f
or b
oard
s, s
uper
viso
rs a
nd m
ange
rs, a
nd v
iew
ing
them
reg
ular
ly. C
omm
ittee
sho
uld
refe
r to
the
indu
stry
pay
men
t and
con
side
r per
sona
l per
form
ance
, com
pany
’s o
pera
tions
and
futu
re ri
sk ra
ther
than
see
k th
e hi
gher
com
pens
atio
n. T
here
wer
e 4
mee
tings
unt
il M
ay 6
, 201
3.
A to
tal o
f five
Boa
rd o
f Dire
ctor
s m
eetin
gs a
nd th
ree
disc
harg
ed m
eetin
gs w
ere
held
in 2
011.
Inde
pend
ent d
irect
or a
ttend
ance
was
as
follo
ws:
Title
Nam
eA
tten
danc
e in
Per
son(
B)
Att
enda
nce
rate
(%) [
B/A
]R
epre
sent
ativ
eR
emar
ksC
onve
nrt
Qia
n, D
ai4
010
0%C
omm
issi
oner
Shu-
Fen,
Xun
40
100%
Com
mis
sion
erM
ei-H
ui, Q
iu3
175
%
34
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e Gov
erna
nce
Best-
Prac
tice P
rincip
les fo
r TW
SE/
GTS
M L
isted
Com
pani
es”
and
reas
ons
1. P
rom
ote
the
impl
emen
tatio
n of
cor
pora
te g
over
nanc
e(1
) C
orpo
rate
def
ines
cor
pora
te s
ocia
l re
spon
sibi
lity
poli
cy o
r sy
stem
and
rev
iew
the
eff
ect
of
impl
emen
tatio
n.
(2)
Ope
ratio
n of
cor
pora
te s
ocia
l res
pons
ibili
ty f
ull-t
ime
(par
t-tim
e) u
nit
(3)
Cor
pora
te a
rran
ges
busi
ness
eth
ics
educ
atio
n,
train
ing,
and
pro
mot
ion
perio
dica
lly fo
r the
dire
ctor
s,
supe
rvis
ors,
and
em
ploy
ees;
als
o, it
is in
tegr
ated
with
em
ploy
ee’s
per
form
ance
eva
luat
ion
syst
em fo
r a c
lear
ef
fect
ive
rew
ard
and
puni
shm
ent s
yste
m.
(1) N
one
(2) N
one
(3) N
one
(1)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
(2)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
(3)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
2. T
he d
evel
opm
ent o
f a s
usta
inab
le e
nviro
nmen
t(1
) Th
e co
mpa
ny s
trive
s to
upg
rade
the
effe
ctiv
enes
s of
re
sour
ce u
tiliz
atio
n; a
lso
uses
rec
ycle
d m
ater
ials
that
ar
e fr
iend
ly to
the
envi
ronm
ent
(2)
The
com
pany
est
ablis
hes
adeq
uate
env
iron
men
tal
man
agem
ent s
yste
m b
y th
e in
dust
rial f
eatu
res
(3)
The
com
pany
set
ups
envi
ronm
enta
l m
anag
emen
t sp
ecia
lists
uni
t to
prot
ect t
he e
nviro
nmen
t
(4) T
he c
ompa
ny s
tays
ale
rt th
e im
pact
of c
limat
e ch
ange
on
bus
ines
s ac
tiviti
es; a
lso,
dra
fts u
p en
ergy
sav
ing
and
carb
on r
educ
tion
and
gree
nhou
se g
as r
educ
tion
stra
tegy
.
(1) N
one
(2) N
one
(3) N
one
(4) N
one
(1)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
(2)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
(3)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
(4)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
3.3.
5 So
cial
Res
pons
ibili
ty
Prince Housing & Development Corp . Annual Report 2012
35
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e Gov
erna
nce
Best-
Prac
tice P
rincip
les fo
r TW
SE/
GTS
M L
isted
Com
pani
es”
and
reas
ons
3. M
aint
enan
ce o
f soc
ial w
elfa
re(1
) T
he c
ompa
ny f
ollo
ws
the
gove
rnin
g la
bor
law
s,
prot
ect
empl
oyee
’s l
awfu
l in
tere
st,
and
esta
blis
h ad
equa
te m
anag
emen
t and
pro
cedu
re
(2) T
he c
ompa
ny p
rovi
des
wor
kers
with
saf
e an
d he
alth
y w
orki
ng e
nviro
nmen
t; al
so, p
rovi
de r
egul
arly
saf
ety
and
heal
th e
duca
tion.
(3)
Est
abli
shin
g th
e co
mm
unic
atio
n sy
stem
s. T
he
com
pany
can
info
rm e
mpl
oyee
s w
hen
ther
e is
a h
uge
effe
ct o
n th
e ch
ange
of o
pera
tion.
(4)
The
com
pany
def
ines
and
ann
ounc
es t
he c
onsu
mer
po
licy
; al
so,
the
clea
r an
d ef
fect
ive
cons
umer
co
mpl
aint
s pr
oced
ures
pro
vide
for
the
com
pany
pr
oduc
ts a
nd s
ervi
ces.
(5)
The
com
pany
wor
ks w
ith
supp
lier
s to
upg
rade
co
rpor
ate
soci
al re
spon
sibi
lity.
(6) T
he c
ompa
ny p
artic
ipat
es in
com
mun
ity d
evel
opm
ent
and
char
ity
acti
viti
es b
y co
mm
erci
al a
ctiv
itie
s,
mat
eria
ls d
onat
ion,
cor
pora
te v
olun
teer
s’ s
ervi
ce, a
nd
othe
r fre
e sp
ecia
l ser
vice
s.
(1)
The
com
pany
fol
low
s th
e go
vern
ing
labo
r la
ws,
pr
otec
ts e
mpl
oyee
’s in
tere
st.
(2)
The
com
pany
em
phas
izes
lab
ors’
saf
ety
by
requ
esti
ng t
he w
orke
rs i
n co
nstr
ucti
on s
ite
exac
tly t
o la
unch
tra
inin
g pr
ogra
m a
nd s
afet
y ac
tivity
gui
danc
e.
(3)
(3)
Bui
lt u
p a
inte
rior
EIP
net
wor
k an
d em
ploy
ees
can
rece
ive
the
late
st n
ews
and
info
rmat
ion
via
it.
(4)
The
com
pany
set
up
cons
umer
com
plai
nt
hotli
ne c
ombi
ned
with
tech
nica
l sys
tem
to s
olve
pr
oble
ms
for
clie
nts
in t
ime,
aft
er r
epai
ring
we
will
con
tinue
to tr
ack
the
build
ing.
(5)
Non
e
(6)
Spon
sore
d ar
ts a
ctiv
ities
, and
pro
vide
clo
thes
and
fo
ods
for m
inor
ities
.
4. E
nhan
ce in
form
atio
n di
sclo
sure
(1)
The
way
dis
clos
ing
rele
vant
rel
iabl
e co
rpor
ate
soci
al
resp
onsi
bilit
y in
form
atio
n.
(2) T
he c
ompa
ny c
ompo
ses c
orpo
rate
soci
al re
spon
sibi
lity
repo
rt an
d di
sclo
ses
the
prom
otio
n of
cor
pora
te s
ocia
l re
spon
sibi
lity.
(1) N
one
(2) N
one
(1)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
(2)
The
com
pany
has
not
set
up
corp
orat
e so
cial
res
pons
ibili
ty
polic
y or
gui
delin
es y
et.
36
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e Gov
erna
nce
Best-
Prac
tice P
rincip
les fo
r TW
SE/
GTS
M L
isted
Com
pani
es”
and
reas
ons
5.
If th
e co
mpa
ny h
as c
orpo
rate
soc
ial r
espo
nsib
ility
defi
ned
in a
ccor
danc
e w
ith th
e “R
ules
Gov
erni
ng L
iste
d &
OTC
cor
pora
te g
over
nanc
e,”
plea
se
stat
e th
e op
erat
ion
and
the
devi
atio
n fr
om th
e “R
ules
Gov
erni
ng L
iste
d &
OTC
cor
pora
te g
over
nanc
e” :
none
6.
Oth
er m
ater
ials
info
rmat
ion
cruc
ial t
o co
rpor
ate
soci
al r
espo
nsib
ility
(su
ch a
s th
e sy
stem
, mea
sure
s, a
nd p
erfo
rman
ce o
f th
e co
mpa
ny r
elat
ed to
en
viro
nmen
tal p
rote
ctio
n, c
omm
unity
invo
lvem
ent,
soci
al c
ontri
butio
n, s
ocia
l ser
vice
, soc
ial c
harit
y, c
onsu
mer
’s in
tere
st h
uman
rig
ht, s
afet
y an
d he
alth
, and
soc
ial a
ctiv
ities
): no
ne
7.
Plea
se d
etai
l if t
he c
ompa
ny p
rodu
cts
or c
orpo
rate
soc
ial r
espo
nsib
ility
repo
rt is
cer
tified
by
any
inst
itutio
ns: n
one
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e Gov
erna
nce
Best-
Prac
tice P
rincip
les fo
r TW
SE/
GTS
M L
isted
Com
pani
es”
and
reas
ons
1.
Prom
ulga
te e
thic
al c
orpo
rate
man
agem
ent
best
pr
actic
e pr
inci
ples
(1
) C
lear
ly sp
ecify
eth
ical
cor
pora
te m
anag
emen
t pol
icie
s in
com
pany
rul
es, e
xter
nal d
ocum
ents
and
und
erta
ke
to r
igor
ousl
y en
forc
e su
ch p
olic
ies
prom
ised
by
the
boar
d of
dire
ctor
s an
d th
e m
anag
ers.
(2)
Esta
blis
h et
hica
l cor
pora
te m
anag
emen
t bes
t pra
ctic
e pr
inci
ple
com
preh
ensi
ve p
rogr
ams
to f
ores
tall
unet
hica
l con
duct
("p
reve
ntio
n pr
ogra
m")
, inc
ludi
ng
oper
atio
nal p
roce
dure
s, g
uide
lines
, and
trai
ning
.
(3)
Whe
n es
tabl
ishi
ng t
he p
reve
ntio
n pr
ogra
m, e
nfor
ce
prev
entiv
e m
easu
res
agai
nst o
ffer
ing
and
acce
ptan
ce
of b
ribes
and
ille
gal p
oliti
cal d
onat
ions
for t
he h
ighe
r ris
k in
volv
ed in
une
thic
al c
ondu
ct b
usin
ess
activ
ities
.
(1) N
one
(2) N
one
(3) N
one
(1)
The
com
pany
has
not
set
up
ethi
cal
corp
orat
e m
anag
emen
t be
st p
ract
ice
prin
cipl
e ye
t.
(2)
The
com
pany
has
not
set
up
ethi
cal
corp
orat
e m
anag
emen
t be
st p
ract
ice
prin
cipl
e ye
t.
(3)
The
com
pany
has
not
set
up
ethi
cal
corp
orat
e m
anag
emen
t be
st p
ract
ice
prin
cipl
e ye
t.
3.3.
6 P
erfo
rmin
g in
tegr
ity o
pera
tion
and
adop
ting
mea
sure
s:
Prince Housing & Development Corp . Annual Report 2012
37
Item
Impl
emen
tatio
n St
atus
Devi
atio
ns fr
om “
Corp
orat
e Gov
erna
nce
Best-
Prac
tice P
rincip
les fo
r TW
SE/
GTS
M L
isted
Com
pani
es”
and
reas
ons
2. I
mpl
emen
ting
ethi
cal m
anag
emen
t bes
t pra
ctic
e(1
) A
void
trad
ing
with
une
thic
al p
eopl
e an
d st
ipul
ate
the
ethi
cal b
ehav
ior c
laus
e in
the
busi
ness
con
tact
s.
(2
) Se
t up
the
ente
rpris
e et
hic
depa
rtmen
t to
prom
ote
the
prac
tice
and
supe
rvis
e th
e pr
oces
s.
(3)
Est
abli
sh r
egul
atio
ns f
or p
reve
ntin
g co
nfli
ct o
f in
tere
sts
and
prov
ide
appr
opria
te s
tate
way
.
(4)
Esta
blis
h ef
fect
ive
acco
untin
g sy
stem
s an
d in
tern
al
cont
rol
syst
ems
for
busi
ness
act
iviti
es a
nd p
repa
re
audi
t rep
orts
regu
larly
.
(1) N
one
(2) N
one
(3) N
one
(4) N
one
(1)
The
com
pany
has
not
set
up
ethi
cal
corp
orat
e m
anag
emen
t be
st p
ract
ice
prin
cipl
e ye
t. (2
) T
he c
ompa
ny h
as n
ot s
et u
p et
hica
l co
rpor
ate
man
agem
ent
best
pra
ctic
e pr
inci
ple
yet.
(3)
The
com
pany
has
not
set
up
ethi
cal
corp
orat
e m
anag
emen
t be
st p
ract
ice
prin
cipl
e ye
t. (4
) T
he c
ompa
ny h
as n
ot s
et u
p et
hica
l co
rpor
ate
man
agem
ent
best
pra
ctic
e pr
inci
ple
yet.
3.
Esta
blis
h a
form
al c
hann
el f
or r
ecei
ving
rep
orts
on
unet
hica
l con
duct
and
a c
ompl
aint
sys
tem
to h
andl
e vi
olat
ion
of th
e et
hica
l cor
pora
te m
anag
emen
t rul
es.
Non
eTh
e co
mpa
ny h
as n
ot s
et u
p et
hica
l co
rpor
ate
man
agem
ent b
est p
ract
ice
prin
cipl
e ye
t.
4. E
nhan
ce in
form
atio
n di
sclo
sure
(1)
The
com
pany
set
up
web
site
to
disc
lose
eth
ical
co
rpor
ate
man
agin
g in
form
atio
n.
(2)
Oth
er d
iscl
osur
e ch
anne
ls(
i.e.
Eng
lish
web
site
, de
sign
ated
per
sonn
el i
n ch
arge
of
com
pany
in
form
atio
n co
llect
ion
and
disc
losu
re)
(1) N
one
(2) N
one
(1)
The
com
pany
has
not
set
up
ethi
cal
corp
orat
e m
anag
emen
t be
st p
ract
ice
prin
cipl
e ye
t.(2
) T
he c
ompa
ny h
as n
ot s
et u
p et
hica
l co
rpor
ate
man
agem
ent
best
pra
ctic
e pr
inci
ple
yet.
5.
If th
e co
mpa
ny h
as e
thic
al c
orpo
rate
man
agem
ent b
est p
ract
ice
defin
ed in
acc
orda
nce
with
the
“Eth
ical
Cor
pora
te M
anag
emen
t Bes
t Pra
ctic
e Pr
inci
ples
,” p
leas
e st
ate
the
oper
atio
n an
d th
e de
viat
ion
from
the
“Eth
ical
Cor
pora
te M
anag
emen
t Bes
t Pra
ctic
e Pr
inci
ples
” : n
one
6. O
ther
mat
eria
ls in
form
atio
n cr
ucia
l to
ethi
cal c
orpo
rate
man
agem
ent b
est p
ract
ice
prin
cipl
es: n
one
38
3.3.7 The company does not have corporate governance rules and regulations defined; therefore, it is not applicable
3.3.8 Other important information that helps understand corporate governance: None.
3.3.9 Internal Control System Execution Status
1. Declaration of Internal Control: Please refer to following2. If the company is requested by the SEC o retain CPA’s service for examining internal control
system, the independent Auditor’s Report must be disclosed: None
Prince Housing & Development Corp . Annual Report 2012
39
Prince Housing and Development Corporation Declaration of Internal Control
Date: March 15, 2013
The internal control system in 2012 is with the following declarations made in accordance with self-inspection conducted: l. We understand it is the responsibility of the company's management to have internal control
system established, enforced, and maintained. The company internal control system established to provide a reasonable assurance for the realization of operating effect and efficiency (including profits, performance, and assets safety), the reliability of financial report, and the obedience of relevant regulations.
2. Internal control system is designed with limitations; therefore, no matter how perfect it is designed, an effective internal control system is to ensure the realization of the aforementioned three objectives. Due to the change of environment and condition, the effectiveness of an international control system could change at any time. Our internal control system is designed with self-monitoring mechanism; therefore, we are able to have corrective actions initiated upon identifying any nonconformity.
3. We have based on the internal control criteria of "Governing Rules for handling international; control system by public offering companies" (referred to as "the Governing Rules" hereinafter) to determine the effectiveness of internal control design and enforcement. The internal control divided into five elements: 1. Environment control, 2. Risk analysis, 3. Control process, 4.Information and communication, and 5. Supervision. Each element is subdivided into several items. Please refer to the "Governing Rules" for the details of the said items.
4. We have based on the aforementioned internal control criteria to inspect the effectiveness of internal control design and enforcement.
S. We believe that our audits provide a reasonable basis for our opinion. On December 31, 2011 , those standards require that we plan and perform the audit to obtain reasonable assurance about whether the internal control system (including the supervision and management over the subsidiaries) including the fulfillment of business performance and efficiency, the reliability of financial statements and the obedience of governing regulations, and the design and enforcement of internal control system is free of material misstatement and is able to ensure the realization ofthe aforementioned objectives.
6. The Declaration of Internal Control is the content of our annual report and prospectus for the information of the public. For any forgery and concealment of the aforementioned information to the public, we will be held responsible by law in accordance with Securities Transaction Regulation No. 20, No.32, No.171, and No.174.
7. We hereby declared the Declaration ofInternal Control was approved by Board of Directors on March 15,2013 unanimously by the directors at the meeting.
Prince Housing and Development CorporationChairman: Na-Tian Zhuang President: Ming-Fan Xie
40
3.3.10 The punishment delivered to the company and the staff of the company, or, the punishment delivered by the company to the staff for a violation of internal control system, the major nonconformity, and the corrective action in the most recent years and up to the date of the annual report printed: None
3.3.11 Resolutions reached in the Shareholders’ Meeting or by the board of directors in the most recent years and up to the date of the annual report printed:
The company cash dividends distribution $0.5/share was passed in the board meeting in March 15, 2013, but capital increase out of earnings stock dividends $1/share (0.1 shares per share) distribution date will depend on shareholders’ meeting.
3.3.12 The directors or supervisors who have objected to the resolutions reached by the board of directors and the objections are recorded or declared in writing in the most recent year and up to date of the annual report printed:
The Chairman Na-Tian, Zhuang opposed to Ta-Chen Construction & Engineering Corp’s plan of selling the holding shares of our company in the board of directors meeting, March 15, 2013, and other directors had no opposition.
3.3.13 The resignation or discharge of personnel who are responsible for financial statements in the most recent years and up to the date of the annual report printed:
CPA firm Name Auditing period NoteKPMG Yi-Zhang Lin Kuo-Hua Wang Jan 1, 2012~Dec 31, 2012
3.4 CPAs fees(1) The non-auditing fees paid to CPAs, CPA firm, and the CPA form’s related party accounted for over
a quarter of the total auditing fees, the auditing amount and non-auditing amount; also, the non-auditing service must be disclosed:
Title Name To assume a post Date Expiration
The resignation or expiration the
reasonManaging Director Zhong-Jan Wu 2010.06.24 2012.5.2 resign
Range of Audit fees and Non-Audit Fees Unit: NT$ thousands
Audit Fees Non-Audit Fees Total
1 Below 2,000 0 0 02 2,000(included)~4,000 0 0 03 4,000(included)~6,000 5,991 4,142 10,1334 6,000(included)~8,000 0 0 05 8,000(included)~10,000 0 0 06 More than 10,000(included) 0 0 0
Range of Audit FeesItem
Prince Housing & Development Corp . Annual Report 2012
41
CPA
firm
CPA
Aud
it Fe
es
Non
-Aud
it Fe
esTe
rmR
emar
kSy
stem
D
esig
nIn
dustr
ial an
d Co
mm
ercia
l Re
gistr
ation
Hum
an
Res
ourc
eOt
her
Tota
l
KPM
GY
i-Zha
ng L
in5,
991
015
20
3,99
04,
142
Jan
1 ,2
012
~Dec
31,
201
2$3
,023
for e
ntiti
es o
rgan
izat
ion,
$7
66 fo
r tra
nsfe
r pric
ing
repo
rt, a
nd
$201
for c
orpo
rate
bon
d.K
uo-H
ua W
ang
(2)
If
the
audi
ting
fee
paid
in th
e ye
ar r
etai
ning
ser
vice
fro
m a
noth
er C
PA F
irms
is le
ss th
an th
e au
ditin
g fe
e pa
id in
the
year
bef
ore,
the
amou
nt o
f au
ditin
g fe
e be
fore
and
afte
r the
cha
nge
of C
PA F
irm a
nd th
e re
ason
s fo
r the
sai
d ch
ange
mus
t be
disc
lose
d: N
one
(3)
If th
e au
ditin
g fe
e pa
id in
the
year
ret
aini
ng s
ervi
ce f
rom
ano
ther
CPA
Firm
s is
ove
r 25
% le
ss th
an th
e au
ditin
g fe
e pa
id in
the
year
bef
ore,
the
amou
nt a
nd ra
tio o
f aud
iting
fee
redu
ced
and
the
reas
ons
for t
he s
aid
chan
ge m
ust b
e di
sclo
sed:
Non
e
3.5
CPA
Rep
lace
men
t Inf
orm
atio
n: N
one
3.6
If t
he c
hair
man
, pre
side
nt, a
nd fi
nanc
ial o
r ac
coun
ting
man
ager
of
the
com
pany
who
had
wor
ked
for
the
inde
pend
ent
audi
tor
or th
e re
late
d pa
rty
in th
e m
ost r
ecen
t yea
r, th
e na
me,
title
, and
term
with
the
inde
pend
ent a
udito
r or
the
rela
ted
part
y m
ust b
e di
sclo
sed:
Non
e
3.7
Equ
ity
tran
sfer
red
and
equi
ty p
ledg
ed (
or c
hang
es t
here
to)
by D
irec
tors
, Su
perv
isor
s, D
epar
tmen
t H
eads
and
Sh
areh
olde
rs o
f 10%
Sha
reho
ldin
g or
Mor
e du
ring
the
prec
edin
g fis
cal y
ear
or in
the
curr
ent fi
scal
yea
r up
to th
e da
te o
f pr
intin
g of
the
annu
al r
epor
t:
Cha
nges
in S
hare
hold
ing
of D
irect
ors,
Sup
ervi
sors
, Man
ager
s an
d M
ajor
Sha
reho
lder
s
42
Title
Nam
e
2012
As o
f Apr
. 30,
201
3
Hol
ding
Incr
ease
(Dec
reas
e)
Pled
ged
Hol
ding
Incr
ease
(Dec
reas
e)
Hol
ding
Incr
ease
(Dec
reas
e)
Pled
ged
Hol
ding
Incr
ease
(Dec
reas
e)M
ajor
Sha
reho
lder
Uni
-Pre
side
nt E
nter
pris
es C
o.11
,345
,986
-
--
Cha
irman
Hon
g-Ya
o In
vest
men
t Co.
Ltd
18
8,27
6 -
--
Cha
irman
Hon
g-Ya
o In
vest
men
t Co.
Ltd
Rep
:Na-
Tian
Zhu
ang
1,30
8,17
4 -
--
Man
agin
g D
irect
orFu
-She
ng D
evel
opm
ent C
o. L
td74
1,25
4 (1
,900
,000
)(1
,900
,000
)-
Man
agin
g D
irect
orFu
-She
ng D
evel
opm
ent C
o. L
td R
ep:
Min
g-H
ui C
hen
474,
750
(4,0
40,0
00)
(4,0
40,0
00)
-M
anag
ing
Dire
ctor
Jiu-
fu In
vest
men
t Co.
Ltd
1,03
5,91
5 -
--
Man
agin
g D
irect
orB
o-M
ing
Hou
1,50
9,79
9 -
--
Man
agin
g D
irect
orYu
n W
en In
vest
men
t Co.
Ltd
1,01
5,60
3 -
--
Man
agin
g D
irect
orZh
ong-
Jan
Wu
353,
462
--
-D
irect
orTa
i-Bo
Inve
stm
ent C
o. L
td3,
935,
218
--
-D
irect
orTa
i-Bo
Inve
stm
ent C
o. L
td R
ep: J
ian-
De
Wu
521,
544
--
-D
irect
orC
heng
-Lon
g In
vest
men
t Co.
Ltd
1,72
2,08
5 -
--
Dire
ctor
Che
ng-L
ong
Inve
stm
ent C
o. L
td R
ep:
Yin
g-Zh
i Zhu
ang
48,9
46
--
-D
irect
orC
heng
-Da
Inve
stm
ent C
o. L
td46
1,98
8 -
--
Dire
ctor
Che
ng-D
a In
vest
men
t Co.
Ltd
Rep
: Pi
ng-Z
hi W
u80
4,57
3 -
--
Dire
ctor
Zhao
-Mei
Wu
Zeng
2,66
0,90
4 -
- -
Dire
ctor
Bo-
Yi H
ou1,
099,
351
- -
- D
irect
orC
hao-
Wen
Hua
ng1,
068,
950
- -
- D
irect
orR
en-Q
in C
hen
(759
,709
)-
--
Dire
ctor
Jing
-Xin
g C
hen
40,8
27
--
-D
irect
orH
ong-
Yan
Jhua
ng34
,660
-
--
Supe
rvis
orG
uang
-Wei
Inve
stm
ent C
o. L
td1,
366,
432
--
-Su
perv
isor
Gua
ng-W
ei In
vest
men
t Co.
Ltd
Rep
: Y
ing-
Nan
Zhu
ang
104,
378
- -
- Su
perv
isor
Da-
Xio
ng X
u45
,749
-
--
Pres
iden
tM
ing-
Fan
Xie
5,45
0 -
--
Seni
or V
ice
Pres
iden
tW
en-Z
hen
Qiu
(20,
605)
- (1
8,00
0)-
Man
ager
Yin
g-Ji
e Zh
uang
40,0
00
--
-M
anag
erJu
n-Li
ang
Lin
717
- -
- M
anag
erD
a-C
hang
Dai
306
- -
- V
ice
Ass
ista
nt P
resi
dent
Ken
g-W
ang
Zhen
(290
,112
)-
--
Prince Housing & Development Corp . Annual Report 2012
43
Not
e1: S
hare
hold
ers
with
a s
take
of 1
0 pe
rcen
t or m
ore,
the
reci
pien
t's n
ame
shal
l be
disc
lose
d al
ong
with
a n
ote
expl
aini
ng.
Not
e2: W
here
the
reci
pien
t of t
he e
quity
tran
sfer
or e
quity
ple
dge
has
ties
to th
e co
mpa
ny, i
t has
to fi
ll in
the
follo
win
g ta
bula
tion.
Not
e3: O
ther
dire
ctor
s, s
uper
viso
rs, m
anag
ers
and
maj
or s
hare
hold
ers
have
no
chan
ge in
equ
ity.
Nam
eR
easo
n of
Tr
ansf
erD
ate
of
Tran
sact
ion
Tran
sfer
eeR
elat
ions
hip
betw
een
Tran
sfer
ee a
nd
Dir
ecto
rs, S
uper
viso
rs, M
anag
ers a
nd M
ajor
Sh
areh
olde
rsSh
ares
Tran
sact
ion
Pric
e (N
TD
)
Non
e.
Shar
es T
radi
ng w
ith R
elat
ed P
artie
s
Shar
es P
ledg
e w
ith R
elat
ed P
artie
s
Nam
eR
easo
n of
Pl
edge
Dat
e of
Tr
ansa
ctio
nTr
ansf
eree
Rela
tions
hip
betw
een
Tran
sfer
ee a
nd D
irect
ors,
Supe
rviso
rs, M
anag
ers
and
Maj
or S
hare
hold
ers
Shar
esSh
ares
ho
ldin
g%
Shar
es
Pled
ged
%
Pled
ged
Am
ount
Fu-S
heng
D
evel
opm
ent C
o. L
tdre
deem
ed20
12.3
.20
Gra
nd B
ills
Fina
nce
Cor
p.N
O1,
900,
000
0.68
%0%
(19,
000,
000)
Tai-B
o In
vest
men
t C
o. L
tdre
deem
ed20
12.3
.20
Meg
a B
ills
Fina
nce
Co.
, Ltd
NO
4,04
0,00
00.
44%
0%(4
0,40
0,00
0)
44
3.8
The
rel
atio
nshi
p of
the
top
ten
shar
ehol
ders
as d
efine
d in
the
Fina
nce
Stan
dard
Art
icle
6 :
Nam
eSh
areh
oldi
ngSp
ouse
& M
inor
Shar
ehol
ding
by N
omin
eeA
rran
gem
ent
The
rel
atio
nshi
p be
twee
nan
y of
the
Com
pany
’sTo
p Te
n Sh
are
hold
ers
Rem
arks
Shar
es%
Shar
es%
Shar
es%
Nam
eR
elat
ion
Uni
-Pre
side
nt E
nter
pris
es
Co.
124,
805,
850
10.4
5%0
00
0Ta
i-Bo
Inve
stm
ent C
o. L
tdD
irect
or
Kao
-Qua
n In
vest
men
t Co.
Ltd
Cha
irman
Tai-B
o In
vest
men
t Co.
Ltd
(Rep
. Jia
ng-D
e W
u)53
,287
,399
4.46
%0
00
0U
ni-P
resi
dent
Ent
erpr
ises
Co.
Dire
ctor
Cen
tral B
ank
Inve
stm
ent o
f K
ingd
om o
f Sau
di A
rabi
a en
trust
ed to
JP
Mor
gan
36,2
22,0
693.
03%
00
00
Non
eN
one
Ta-C
hen
Con
stru
ctio
n &
En
gine
erin
g C
orp
34,4
35,7
202.
88%
00
00
Non
eN
one
Kao
-Qua
n In
vest
men
t Co.
Lt
d (R
ep. Q
ing-
Yuan
Gao
)31
,446
,866
2.63
%0
00
0U
ni-P
resi
dent
Ent
erpr
ises
Co.
Cha
irman
Zhao
-Mei
Wu
Zeng
29,2
69,9
462.
45%
00
00
We-
De
Wu
Son
Xin
g-Yo
ng-X
ing
Inve
stm
ent
Co.
,Ltd
20,1
81,9
321.
69%
00
00
Non
eN
one
Jiu-
Fu In
vest
men
t Co.
Ltd
19,0
76,0
681.
60%
00
00
Non
eN
one
Che
ng-L
ong
Inve
stm
ent C
o.
Ltd
18,9
42,9
421.
59%
00
00
Non
eN
one
San
Shin
g Sp
inni
ng C
o., L
td
Rep
. Jon
g-Ja
in W
u17
,245
,039
1.
44%
00
00
Non
eN
one
Bas
elin
e da
te: A
pr 2
2, 2
013
Uni
t: Sh
are;
%
Prince Housing & Development Corp . Annual Report 2012
45
3.9
Inve
stm
ents
of D
irec
tors
, Sup
ervi
sors
, man
ager
s an
d di
rect
ly o
r in
dire
ctly
con
trol
led
busi
ness
on
the
rein
vest
ed b
usin
ess
and
the
tota
l sha
reho
ldin
gs r
atio
:
Inve
stee
sIn
vest
men
t of t
he C
ompa
ny
Inve
stm
ents
from
Dir
ecto
rs,
Supe
rvis
ors,
Man
ager
s and
di
rect
ly o
r In
dire
ctly
Con
trol
led
Bus
ines
s
Tota
l Inv
estm
ent
Shar
es%
Shar
es%
Shar
es%
Che
ng-S
hi In
vest
men
t Hol
ding
Co.
, Ltd
120,
807,
230
100.
00%
-
-
120,
807,
230
100.
00%
Ta-C
hen
Con
stru
ctio
n &
Eng
inee
ring
Cor
p-
-
124,
000,
000
100%
124,
000,
000
100.
00%
Che
ng-S
hi C
onst
ruct
ion
Co.
, Ltd
--
1
0,10
0,00
0 10
0%
10,1
00,0
0010
0.00
%Pr
ince
Util
ity C
o., L
td-
-
3,
070,
000
100%
3,07
0,00
010
0.00
%Pr
ince
Pro
perty
Man
agem
ent C
onsu
lting
Co.
17,1
46,5
8010
0.00
%-
-17
,146
,580
100.
00%
Prin
ce S
ecur
ity C
o., L
td-
-
13,
172,
636
100.
00%
13,1
72,6
3610
0.00
%Pr
ince
Apa
rtmen
t Man
agem
ent M
aint
ain
Co.
, Ltd
--
3,00
0,00
010
0.00
%3,
000,
000
100.
00%
Gen
g-D
ing
Co.
, Ltd
18,0
00,0
0030
.00%
--
18,0
00,0
0030
.00%
Prin
ce H
ousi
ng In
vest
men
t Co.
, Ltd
428
100.
00%
-
-
428
100.
00%
Bio
Sun
Tech
nolo
gy C
o., L
td4,
688,
000
100.
00%
-
-
4,68
8,00
010
0.00
%Pr
ince
Bio
tech
nolo
gy C
o., L
td25
0,00
050
.00%
250,
000
50.0
0%50
0,00
010
0.00
%Pr
ince
Ta-
Che
n In
vest
men
t Co.
, Ltd
12,2
70,1
0099
.97%
1,85
10.
05%
12,2
71,9
5199
.99%
Don
g-Fe
ng E
nter
pris
es C
o., L
td20
,400
,194
100.
00%
--
20,4
00,1
9410
0.00
%U
ni-P
resi
dent
Dev
elop
men
t Cor
p.10
8,00
0,00
030
.00%
--
108,
000,
000
30.0
0%Th
e Sp
lend
or H
otel
Tai
chun
g97
,500
,000
50.0
0%-
-97
,500
,000
50.0
0%Ti
me
Squa
re In
tern
atio
nal C
o., L
td60
,000
,000
100.
00%
--
60,0
00,0
0010
0.00
%Ji
n-Y
i-Xin
g pl
ywoo
d C
o., L
td15
1,46
899
.65%
--
151,
468
99.6
5%Ea
rly S
ucce
ss In
vest
men
ts L
td.
1,55
4,66
010
0.00
%-
-1,
554,
660
100.
00%
Min
g-D
a En
terp
rise
Co.
, Ltd
3,64
0,00
020
.00%
--
3,64
0,00
020
.00%
Sple
ndor
Ass
ets
Man
agem
ent C
o., L
td50
,000
50.0
0%-
-50
,000
50.0
0%Pr
ince
Ass
ets
Man
agem
ent L
LC.
2,19
010
0.00
%-
-2,
190
100.
00%
Tota
l Sha
reho
ldin
g R
atio
Bas
elin
e da
te: A
pr 2
2, 2
013
Uni
t: Sh
are;
%
Annual Report 2012IV
Capital Overview
Prince Housing & Development Corp . Annual Report 2012
47
IV. C
apita
l Ove
rvie
w4.
1 C
apita
l and
Sha
res
4.1.
1 So
urce
of C
apita
l
A. I
ssue
d Sh
ares
Inve
stee
sPa
rVa
lue
(NT
D)
Aut
hori
zed
Cap
ital
Paid
-in C
apita
lR
emar
k
Shar
esA
mou
nt(N
TD)
Shar
esA
mou
nt(N
TD)
Sour
ces
of C
apita
l
Cap
ital
Incr
ease
d by
Ass
ets
Oth
erth
an C
ash
Oth
er
Mar
200
3$1
090
5,83
9,64
59,
058,
396,
450
905,
839,
645
9,05
8,39
6,45
0C
ance
llatio
n of
Tre
asur
e sh
ares
Non
e
Oct
200
5$1
01,
200,
000,
000
12,0
00,0
00,0
0090
1,33
3,03
29,
013,
330,
320
Cap
italiz
atio
n of
reta
ined
ea
rnin
gs a
nd c
ance
llatio
n of
Tre
asur
e sh
ares
Non
e
May
200
6$1
01,
200,
000,
000
12,0
00,0
00,0
0086
5,12
6,03
28,
651,
260,
320
Can
cella
tion
of T
reas
ure
shar
esN
one
Oct
200
7$1
01,
200,
000,
000
12,0
00,0
00,0
0093
0,01
0,48
49,
300,
104,
840
Cap
italiz
atio
n of
reta
ined
ea
rnin
gsN
one
Oct
200
8$1
01,
200,
000,
000
12,0
00,0
00,0
0095
7,91
0,79
89,
579,
107,
980
Cap
italiz
atio
n of
reta
ined
ea
rnin
gsN
one
Oct
201
0$1
01,
200,
000,
000
12,0
00,0
00,0
0099
6,22
7,23
09,
962,
272,
300
Surp
lus
and
capi
tal
rese
rve
–cap
italiz
atio
n of
Tr
easu
re s
hare
s N
one
Oct
201
1$1
01,
200,
000,
000
12,0
00,0
00,0
001,
085,
887,
681
10,8
58,8
76,8
10C
apita
lizat
ion
of re
tain
ed
earn
ings
Non
e
Oct
. 201
2$1
01,
200,
000,
000
12,0
00,0
00,0
001,
194,
476,
449
11,9
44,7
64,4
90C
apita
lizat
ion
of re
tain
ed
earn
ings
N
oneA
s of
05/
15/2
013
48
Share TypeAuthorized Capital
RemarksIssued Shares Un-issued Shares Total Shares
Common Stock 1,194,476,449 5,523,551 1,200,000,000
B. Type of Stock
C. Aggregated declaration information: N/A
4.1.2 Status of Shareholders
As of 05/15/2013
As of 05/15/2013
Item Government Agencies
Financial Institutions
Other Juridical Person
Domestic Natural Persons
Foreign Institutions & Natural
Persons
Total
Number of Shareholders 1 1 155 51,820 178 52,155
Shareholding (shares) 711 325,000 498,365,665 485,826,808 209,958,265 1,194,476,449
Percentage (%) 0 0.03 41.72 40.67 17.58 100.00
4.1.3 Shareholding Distribution Status
A. Common Shares (The par value for each share is NT$10) As of 05/15/2013Class of Shareholding
(Unit : Share) Number of Shareholders Shareholding (Shares) Percentage
1 ~ 999 30,281 6,834,050 0.57%1,000 ~ 5,000 14,747 32,180,625 2.69%
5,001 ~ 10,000 3,233 23,737,162 1.99%10,001 ~ 15,000 1,381 16,906,939 1.42%15,001 ~ 20,000 574 10,340,204 0.87%20,001 ~ 30,000 585 14,425,503 1.21%30,001 ~ 40,000 280 9,978,633 0.84%40,001 ~ 50,000 179 8,294,181 0.69%
50,001 ~ 100,000 344 24,205,201 2.03%100,001 ~ 200,000 184 26,666,001 2.23%200,001 ~ 400,000 129 36,306,298 3.04%400,001 ~ 600,000 59 28,878,561 2.42%600,001 ~ 800,000 28 19,785,874 1.66%
800,001 ~ 1,000,000 12 10,687,526 0.89%1,000,001 or over 139 925,249,691 77.45%
Total 52,155 1,194,476,449 100.00%
Prince Housing & Development Corp . Annual Report 2012
49
4.1.4 List of Major Shareholders As of 05/15/2013
Shareholder's NameShareholding
Shares PercentageUni-President Enterprises Corp. 124,805,850 10.45%Tai-Bo Investment Co. Ltd 53,287,399 4.46%Central Bank Investment of Kingdom of Saudi Arabia entrusted to JP Morgan 36,222,069 3.03%Ta Chen Construction & Engineering Corp. 34,435,720 2.88%Kao-Quan Investment Co. Ltd 31,446,866 2.63%Wu Ceng Zhao Mei 29,269,946 2.45%Xin Yong Xing Investment Corp 20,181,932 1.69%Jiu-Fu Investment Co. Ltd 19,076,068 1.60%Cheng Long Investment Corp 18,942,942 1.59%San Shing Spinnign Co., Ltd 17,245,039 1.44%
4.1.5 Market Price, Net Worth, Earnings, and Dividends per Share Unit: NT$
Item 2011 2012 01/01/2012-03/31/2012
Market Price per ShareHighest Market Price 31.50 25.30 22.00Lowest Market Price 13.00 15.55 19.90Average Market Price 23.04 20.88 20.99Net Worth per ShareBefore Distribution 13.97 14.19 14.48After Distribution 13.47 Note 4 N/AEarnings per ShareWeighted Average Shares 1,054,056,584 1,159,462,243 1,159,462,243
Diluted Earnings Per Share Before retrospectively adjustment 2.20
Before retrospectively adjustment 1.54 0.09
Adjusted Diluted Earnings Per Share After retrospectively adjustment 1.99 Note 4
Dividends per ShareCash Dividends 0.5 Note 4 N/AStock Dividends ● Dividends from Retained Earnings 1.0 Note 4 N/A ● Dividends from Capital Surplus 0 Note 4 N/AAccumulated Undistributed Dividends 0 0 N/AReturn on InvestmentPrice / Earnings Ratio (Note 1) 1.0 Note 4 N/APrice / Dividend Ratio (Note 2) 0 Note 4 N/ACash Dividend Yield Rate (Note 3) 0 0 N/A
50
Note 1: Price / Earnings Ratio = Average Market Price / Earnings per ShareNote 2: Price / Dividend Ratio = Average Market Price / Cash Dividends per ShareNote 3: Cash Dividend Yield Rate = Cash Dividends per Share / Average Market PriceNote 4: The shareholders’ meeting has not yet determined the distribution of 2011 retained earnings.
4.1.6 Dividend Policy and Implementation Status
A. Dividend PolicyDividends will allocate in cash and common stocks as 50%-50%. If we need to keep our cash in hand because of the plan of capital outgoings, we will have a higher percentage of distribution of cash dividend. The dividends will be distributed in accordance with the resolution that is approved by the Board of Directors and the Annual Shareholders’ Meeting. Weather the percentage of cash or stock dividends of all dividends, it can’t be lower than 30%.
B. Implementation
Cash Dividends Stock Dividends
2006 0.55 0.752007 0.3 0.32008 None None2009 0.2 0.42010 0.9 0.92011 0.5 1.0
2012 Distributed byShareholders’ meeting
Distributed byShareholders’ meeting
Year Item
C. Proposed Distribution of Dividend1. Available for distribution a. Undistributed Earnings in the beginning 587,892,726 b. Less: adjustment of equity investment (9,357,241) c. plus: Net income 1,785,929,595 d. Available for distributed accumulated earnings 2,364,465,080
2. Items a. a. Provision of legal reserve 178,592,960 b. Payment of cash dividends ($0.5 per share) 597,238,225 c. Payment of stock dividends ($1 per share) 1,194,476,450 d. Accumulated un-distributed earnings 394,157,445
Note 1: Distribution of employee bonus: $32,146,733 (cash); of compensation for Directors and supervisors: $48,220,099.
Prince Housing & Development Corp . Annual Report 2012
51
4.1.7 The effect of business performance, earnings per stock, and return on investment by stock dividend
2012(Estimate)
Pain-in capital in beginning (thousands) 11,944,764
DistributionCash dividend per share (NT Dollars) 0.50Stock divident per share-retained earnings 0.10Stock divident per share-capital reserve 0
Business performance
Operation income
N/A(Note 1)
Operation income (compare with last year)Net incomeNet income (compare with last year)Earning per shareEarning per share (compare with last year)Average of return on investment
Fictitious earnings per share & ratio of profit
Capital increase paid out of earnings -> cash dividend
Fictitious earnings per share
N/A(Note 1)
Fictitious average of return on investment
No capitalization of capital reserveFictitious earnings per shareFictitious average of return on investment
No capitalization of capital reserve and capital increase paid out of earnings -> cash dividends
Fictitious earnings per shareFictitious average of return on investment
Year Item
Note 1: No preparation and declaration of any financial forecast in 2012, therefore, no need to disclose the affect of issuance of bonus shares.
4.1.8 Employee Bonus and Directors' and Supervisors' Remuneration
A. Information Relating to Employee Bonus and Directors’ and Supervisors’ Remuneration in the Articles of Incorporation
If there are earnings for distribution at the end of each fiscal year, after offsetting any loss of prior year(s) and paying all taxes and dues, 10% of the remaining net earnings shall be set aside as legal reserve, and appropriation will be made as special reserve in accordance with the Securities Exchange Law. The remaining net earnings can be distributed together with prior accumulated inappropriate retained earnings. The Board of Directors will consider the factors that were mentioned above when making the dividend distribution proposal.
Information on employee bonus and compensation for directors and supervisors as given in the company charter:
52
1. 2 % plus as bonus for employees.2. 3 % as compensation for directors and supervisors.3. Shareholders’ meeting could resolve the distribution of retained earnings.
B. The base of allocate employee bonus, directors’ and supervisors’ remuneration and stock dividends:
It’s base on the net income, legal reserve, and company charter and reported as an operation expense. However, if there is any difference from the decided amount from shareholders’ meeting and the actual amount, it would report as profit/loss of next year.
C. Profit Distribution Approved in Board of Directors Meeting for Employee Bonus and Directors’ and Supervisors’ Remuneration
(1) Recommended Distribution of Employee Bonus and Directors’ and Supervisors’ Remuneration: Employee Bonus – in Cash $32,146,733 Directors' and Supervisors' Remuneration $48,220,099
(2) Ratio of Recommended Employee Stock Bonus to Capitalization of Earnings: None
(3) Recounted EPS after Recommended Distribution of Employee Bonus and Directors’ and Supervisors’ Remuneration:
Employee Bonus – in Cash $32,146,733 Directors' and Supervisors' Remuneration $48,220,099 Recounted EPS (NT$) $ 1.54
D. Information of 2012 Earnings Set Aside to Employee Bonus and Directors’ and Supervisors’ Remuneration: None
4.2 Issuance of Corporate Bonds
A. On Aug 24th, 2011, Board of Directors decided to issue NTD 10-15 millions of domestic secured convertible bonds (First time) and NTD 10-15 millions of unsecured convertible corporate bonds (Second time). Total is NTD 20-30 millions.
B. On March 26th, 2012, Board of Directors decided to issue domestic secured corporate bonds and total is within 20 millions. This issuance completed on July 12, 2012.
C. On March. 15,Board of Directors decided to issue domestic secured corporate bonds $15 million-$30 million to strengthen company financial structure.
Prince Housing & Development Corp . Annual Report 2012
53
Type of Corporate Bonds Domestic Secured Corporate Bonds
Issuance Date 101.7.12Par Value $100,000Issuance price As ParTotal Price $2 millionsRate Fixed rate 1.33%Period 5 years. Mature date:106.7.12Guarantee Agency Bank of TaiwanUnderwriter MasterLind Securities Corporate.Lawyer Ho Yen, YenCertified Public Accountant Yi Cheng, Lin and Su Chung,ChengRedemption At maturityPrinciple $2 millions
4.3 Issuance of Preferred Shares: None
4.4 Global depository receipts: None
4.5 Employee Stock Options: None
4.6 Status of New Shares Issuance in Connection with Mergers and Acquisitions: None
4.7 Information on Implementation of the Company’s Funds Utilization Plans
(a) Description of the plans: The decisions made by Board of Directors of issuance of bonds in 2011 and 2013 are all in preparation and will be implemented depend on our financial needs.
(b) Status of implementation: The fist secured corporate bonds have implemented on July 12, 2012, with total price NTD$2 millions to payback our short-term loans.
This implementation has efficiently lower our debt rate and strengthen our financial structures.
Issuance of Corporate Bonds
Annual Report 2012V
Operational Highlights
Prince Housing & Development Corp . Annual Report 2012
55
V. Operational Highlights5.1 Business Activities
5.1.1 Business Scope
A. Main areas of business operations 1. Development, operation and rental/sale of farms, forests, and livestock aquaculture farms 2. Commissioned the construction and rental/sale of public housing & commercial buildings, tourist
hostels, tourism and recreation business (children’s playground, water park, etc.), indoor/outdoor sports place, parking lots, super markets, ports, and warehouses etc.
3. Development, operation and rental of industrial and residential zone. 4. Promoting the business of manufacturing and trading of construction materials and proxy of
construction skills. 5. Rental and sale of reality 6. Proxy, business, manufacturing and import of sports equipments 7. The commission of the land readjustment 8. E201010 Landscape engineering 9. I503010 Landscape and interior design10. ZZ99999 In addition to the licensing business, an operating act is not prohibited or restricted.
B. Revenue distribution
Major Divisions Total Sales in Year 2011 (%) of total salesConstruction Income 7,166,541 91%
Other Operating Income 725,956 9%Total 7,895,497 100%
Unit;NT$ Thousands
C. Current product line, future service and new products development Current products and services would be the basis to develop the future plan. 1. Operating business A. Products - Focus on residential business, plus business building, rental and BOT project. B. Business management - implement performance management system - emphasize on human resources - By using computer and information tools to strengthen the efficiency and quality of decision. 2. Non-operating business Integration of enterprise resources of Tainan Group in diversification - Leisure service: Howard Beach Resort Kenting, Splendor Hotel Taichung, Time Square
International Hotel. - Biochemical Science and Technology: Taiwan Scino Pharm, Prince Technology Co., Ltd., Bio Sun
Technology Co., Ltd.
56
5.1.2 Industry Overview
In recent years, our government keeps releasing a variety of policies to stable the house selling price. The demand for the residence and commercial usage is still the mainstream. Also, we focus on developing the new residential area in sub-urban in northern Taiwan
The correlation among upstream, midstream and downstreamUpstream: The main raw materials of upstream are lands and construction materials. Because of the
limited resources of materials, it causes the supply and demand unbalanced. But, as of now, there are more and more replaced construction materials.
Midstream: Contractors of building the project.Downstream: Real estate breakage is responsible for the sales
5.1.3 Research and Development
Research and development is our target to keep pursuing. Because of the shortage of construction workers and lands, Prince focuses on research and improving our construction skills. Also, we dispatch employees to Japan on a regular basis to learn the latest and the most environmental standardized construction method. In internal management, we use digitized and standardized progress to spread the information over the company to lower operation cost.
5.1.4 Long-term and Short-term Development
A. Short-term Development1. Operating Business - Effective use of assets and accurate to purchase land - Proactive to receivables and track cask flow - Effective to control cost, personnel training, and prudent investment
2. Real Estate Securitization - Old Community Renewal and BOT project. - Rental and sell of warehouse and business office building to increase profit.
3. Promote the industry related products to increase income.
B. Long-term DevelopmentPrince focuses on tourism facilities and international hotels. So far, we have Howard Beach Resort Kenting (jointed venture with Howard Hotel), Splendor Hotel (jointed venture with CMP Group) and International Time Square Hotel.
Prince is planning to run “Cloud service system” in order to combine all the basis life services to enhance the living environment into a better level.
Prince Housing & Development Corp . Annual Report 2012
57
Area
Taipei
1. Changchun Building
2. Changchun Office Building
3. I-Kao Building4. Neihu Financial
Center5. Prince Building6. President
International Tower
Taipei Area:1. Taipei City2. New Taipei
City3. Taoyoan City4. Hsinchu
City/Country
Taichung
Wanton Financial Center Taipei Area:1. Taichung City2. Chunghwa
City/Country
Tainan
1. Prince Building2. Prince Finance
Building
Taipei Area:1. Taichung City
Kaohsiung None
Kaohsiung Area:1. Kaohsiung
City2. Pitung City/
Country
5.2.2 Market and Sales Overview
5.2.1 Market Analysis
A. Sales (Service) Region
1. Pu Lo Wang Shi2. Prince Town3. Prince Global Village4. Shan Ger Li La5. Prince International
Village6. Prince Sun Town7. Prince Phoenix Town8. Prince Tun Yuan9. Prince Beauty Hall10. Prince Mei Sui11. Prince Vacation
12. Prince 10113. Sansia International
Village14. Guishan Global
Village15. Prince Jin-Hua16. Prince Sky Building17. Prince College18. Taipei Sinyi19. Central Park20. Prince Fu
1. Yuan Han Li Chan2. Prince Seattle3. Prince Jing Jing Yuan4. Prince Jung Fu5. Four Season. Cambridge6. Prince Manor7. Ping Chun Fung Chia8. Prince Sen Huo9. Prince Yuan Ye10. Lin Tung Boulevard11. Prince Zuo Shin Ming A12. Chan Chan Prince13. Prince Culture
14. Prince Yo Life15. Prince New
Generation16. Sung Guan Prince17. Yun Yun Prince18. Prince Ju19. Prince Hui20. Prince Dau21. Prince Fu22. Jing Yun Sian23. The Cloud Century24. Prince Hai Yan
1. Prince Culture2. Prince Life Park3. Century Empire4. Fashion Spring5. Southern Taiwan Science
Splendor6. Prince Golden Brick7. Century Splendor8. Wen Yuan Hall9. Fashion House10. Prince Fu Di11. Prince Wen Yuan
12. Prince. New Culture13. Golden Age14. Culture Hall15. Prince Fung Ho16. Nan Ger Zi Li17. Prince New Culture
II18. Prince Hua Bo II19. Prince Mei Xue20. Prince Hua Bo III21. Prince Fung Yun Hui22. Prince i-Cloud
1. Prince Space2. Prince Harvard3. Prince Chun Di4. Prince Dragon House5. Prince In Mon Hu6. Prince Chun Pin7. Prince Chun Pin Haw
Chia8. Prince Dian Sha9. Prince Sha Lui Di10. Prince Seattle
11. Prince Tun-Yuan12. Prince Dragon13. Prince New York
57th Street14. Prince Culture15. Prince Yuan-Shan16. Prince Town17. Prince Shi Bo18. Prince Shi Yun19. Prince Hua Yang20. Prince Bon
58
5.2 Market and Sales Overview
B. Market Share (%) of Major Product N/A
C. Market demand and supply1. Supply - Supply slowed down because of the floor area ration policy. - Product diversification
2. Demand - Basic Market: For personal use. The demanders in this category are the real estate demanders
because they usually change or buy houses not affected by the economic boom. - Investment Market:
a. Investment market demand: people take the real estate as an investment tool.b. Speculative market demand: it usually happens during the booming economic period.
3. GrowthPrince already focus on its selling and marketing on integrating real estate and high-tech industry. Customers can collect new information, shop, watch entertainment show and understand how Prince manages the communities via internet at home. In the other hand, Prince releases the application system in the smart phone online store which can attract the potential customers to view the case online via smart phone. Customers can also contact us via internet if they have any problem and we could improve the after-sale service time after time.
D. Favorable and Unfavorable Factors in the Long-range Future 1. Competition strengthSince 1973, we insist our spirit of “good location, good design, good quality, and good price.” Also, Tainan Group provides us lot of resource to make the best building in Taiwan.
2. Strength:A. Under circumstance of limited supply of land, market price will keep stable.B. Government opens the real estate market to foreign and China and they can invest the market
directly.C. Consumers ask more about the living quality which make them willing to change or purchase a
new house.D. Administrative region re-design (Taichung, Tainan, and Kaohsiung) and new public transportation
(high speed rail, MRT, and high way) has been completed or extended from original route. We expected that will expand the urban living area.
3. WeaknessA. A lot of pre-sale cases in the past few years made a large amount of inventory.B. Government policies are trying to slow down the selling price and speculation.C. The consumption ability decline and inflation affect the economic.
Prince Housing & Development Corp . Annual Report 2012
59
4. Corresponding Policy
We will focus our project on the spirit of “good location, good design, good quality and good price” plus good after-sale services which will help us keep customers.
5.2.2 The Production Procedures of Main Products
A. Major Products and Their Main UsesPrince’s main products are houses, apartments, high-end residential buildings, stores, and high-end office buildings.
B. Major Products and Their Production Processes
60
5.2.3 Supply Status of Main Materials
1. Location: Base on the land information, we evaluate it by researching, a roughly planning, and profit ability analyzing. If we think the land is workable after evaluating it, we would choose it as our construction site.
2. Plan and design: We will analyze again about the land features, laws, market, product position and business plan. Also, do some detail discussion about the flat space, façade, structure and facilities of the product.
3. Sales: Product cost analyzing, selling price planning, advertisement and promotion, and marketing.4. Project: After getting permission from government, we would start to construct the site base on the
permitted design.5. Registration: After we receive the license and apply for double checking the area, we could register
the land to keep the property right.6. Turn in house: Customer would check before accept the completed and licensed building. After that,
Prince will transfer the property right and building to customer. 7. After-sale service: Prince will set up a service center which will provide the services of maintenance
of buildings, repair, community safety, and cleanness.
5.2.4 Major Suppliers and Clients
Prince’s main products are offered to the public, and we don’t have any customer whose purchase value has been reach to 10% of total sales.
A. Major Suppliers Information for the Last Two Calendar Years
2012 2010Company
Name Amount % Relationwith Issuer
CompanyName Amount % Relation
with IssuerCheng-Shi
Construction Corp 699,743 12 Subsidiary Prince Water and Electricity Corp. 367,848 6 Subsidiary
Prince Water and Electricity Corp. 365,254 6 Subsidiary Cheng-Shi
Construction Corp 224,166 4 Subsidiary
Ta Chen Construction &
Engineering Corp.267,329 4 Subsidiary
Ta Chen Construction &
Engineering Corp.158,960 3 Subsidiary
Unit;NT$
Note 1: Major suppliers mean each commanding 10%-plus share of annual order volume.
Unit;Pin / NTD thousands5.2.5 Production over the Last Two Years
2012 2011
Capacity Quantity Capacity Quantity
House 57,246.39 10,268,926 26,925.04 2,264,355Total 57,246.39 10,268,926 26,925.04 2,264,355
YearSales
Major Products
Prince Housing & Development Corp . Annual Report 2012
61
Unit;Pin / NTD thousands5.2.6 Sales over the Last Two Years
2012 2011
Local Local
Quantity Amount Quantity AmountHouse 53,631.87 7,892,497 32,044.76 9,023,105Total 53,631.87 7,892,497 32,044.76 9,023,105
YearSales
Major Products
5.3 Human Resources
Year 2011 2012 01/01/2013- 05/15/2013
Number of Employees
Employees 59 67 71Technician 3 5 5
Others 173 174 179Total 235 246 255
Average Age 37 37 38Average Years of Service 8 8 9
Education
Ph.D. 1 1 1Masters 35 36 38
Bachelor’s Degree 151 171 178Senior High School 41 29 28
Below Senior High School 7 9 10
5.4 Disbursement for environmental protection
Under construction period, mud, sands and litters would result in a mess of the environment pollution. Therefore, Prince dispatches our employees to Japan to learn about the construction skills and environmental management. We always try our best to keep the site area being mess up.
5.5 Labor Relations
A. Management System: Promotion, welfare, rewards and punishments, vacations, pension, and redundancy payments etc.
B. Welfare: Employee welfare committee, education grant, employees' children scholarships, employee training, domestic/foreign company trip, site accident insurance, and etc.
C. Prince is in order to enhance the quality of human resources and development advantages, we always hold the education events and training programs in domestic and foreign.
D. The company suffered due to loss of labor disputes as so far: None
62
5.6
Impo
rtan
t Con
trac
ts
Agr
eem
ent
Part
ySt
art D
ate
Con
tent
Res
tric
tion
BO
TPr
ince
Hou
sing
(A)
Nat
iona
l Tai
wan
Uni
vers
ity
(B)
Mar
17,
200
5
B s
houl
d re
spon
se fo
r acc
ess
the
owne
rshi
p an
d th
e rig
ht o
f use
of
the
land
in th
is p
rogr
am. A
sho
uld
com
plet
e th
e co
nstru
ctio
n in
3 y
ears
an
d op
erat
e it
for 3
2 ye
ars.
Stu
dent
s pa
y th
e re
nt a
nd o
ther
exp
ense
to A
.
1. D
urin
g th
e co
nstru
ctio
n pe
riod,
the
ratio
of
own
fund
s to
inve
st in
this
pro
gram
cou
ld n
ot lo
wer
th
an 3
0%.
2. D
urin
g th
e op
erat
ion,
the
ratio
of s
tock
equ
ity to
to
tal a
cces
s co
uld
low
er th
an 2
5%. T
he r
atio
of
curr
ent a
sset
s to
cur
rent
liab
ility
cou
ld n
ot lo
wer
th
an 1
00%
/3.
Non
e tra
nsfe
rabl
e
BO
TPr
ince
Hou
sing
(A)
Nat
iona
l Che
ng K
ung
Uni
vers
ity (B
)M
ay 1
0, 2
005
B s
houl
d re
spon
se fo
r acc
ess
the
owne
rshi
p an
d th
e rig
ht o
f use
of t
he
land
in th
is p
rogr
am. A
shou
ld g
et th
e lic
ense
with
in 3
yea
rs s
tarte
d fr
om
the
date
con
tract
sig
ned.
Cha
rtere
d pe
riod
for
stud
ent d
orm
itory
is 3
5 ye
ars
and
shop
ping
mal
l and
hot
el is
50
year
s
Non
e tra
nsfe
rabl
e
Synd
icat
ed L
oan
Prin
ce H
ousi
ng (A
)Ta
Cho
ng B
ank
and
othe
r 9
finan
cial
inst
itutio
ns (B
)Ju
ly 1
0, 2
006
Tota
l am
ount
is 2
5 bi
llion
. The
item
s ar
e in
clud
ing
med
ium
-term
loan
s an
d co
mm
erci
al p
aper
.
Cur
rent
ratio
, deb
t rat
io, a
nd in
tere
st c
over
age
ratio
cou
ldn’
t low
er th
an th
e re
stric
tion
num
ber.
Ban
k w
ill c
heck
it o
nce
a ye
ar.
Synd
icat
ed L
oan
Prin
ce H
ousi
ng (A
)M
ega
Inte
rnat
iona
l C
omm
erci
al B
ank
and
othe
r 7
finan
cial
inst
itutio
ns (B
)
Jan
4, 2
006
Tota
l am
ount
is 2
1.6
billi
on. T
he
item
s ar
e in
clud
ing
long
-term
loan
s an
d gu
aran
tee
rece
ivab
le.
Cur
rent
ratio
, deb
t rat
io, a
nd in
tere
st c
over
age
ratio
cou
ldn’
t low
er th
an th
e re
stric
tion
num
ber.
Ban
k w
ill c
heck
it o
nce
a ye
ar.
Synd
icat
ed L
oan
Prin
ce H
ousi
ng (A
)Ta
Cho
ng B
ank
(B)
June
, 200
7C
urre
nt ra
tio, d
ebt r
atio
, and
inte
rest
co
vera
ge ra
tio c
ould
n’t l
ower
than
th
e re
stric
tion
num
ber.
Cur
rent
rat
io,
debt
rat
io,
tang
ible
ass
ets
and
inte
rest
cov
erag
e ra
tio
unde
r un
cons
olid
ated
fi
nanc
ial
stat
emen
t co
uldn
’t l
ower
tha
n th
e re
stric
tion
num
ber.
Prince Housing & Development Corp . Annual Report 2012
63
Agr
eem
ent
Part
ySt
art D
ate
Con
tent
Res
tric
tion
Coo
pera
tion
in
the
cons
truct
ion
of h
ousi
ng
Prin
ce H
ousi
ng (A
)Ta
iwan
Sug
ar C
orpo
ratio
n (B
)M
ay 1
8, 2
007
Mai
nly
for t
he tr
ansa
ctio
n of
Koa
n A
n lo
t No.
12-1
2 (T
aich
ung)
and
He
Gua
n lo
t No.
44 (T
aina
n)
Agr
eed
to p
ay fo
r the
con
stru
ctio
n an
d sa
les
rela
ted
expe
nses
. No
com
pens
atio
n fo
r any
re
ason
. Acc
ordi
ng to
the
cont
ract
, nee
d to
pay
for
the
depo
sit o
f $18
1,09
0 an
d $9
2,78
0.
Cre
dit c
ase
Prin
ce H
ousi
ng (A
)M
ega
Inte
rnat
iona
l C
omm
erci
al B
ank
(B)
May
2, 2
006
Tota
l am
ount
is 7
.85
billi
on. T
he
item
s ar
e in
clud
ing
med
ium
-term
lo
ans
and
com
mer
cial
pap
er. T
he
foun
datio
n is
pro
vide
d to
est
ablis
h an
d op
erat
e do
rmito
ry B
OT
of
NC
KU
.
Cur
rent
ratio
, deb
t rat
io, a
nd in
tere
st c
over
age
ratio
cou
ldn’
t low
er th
an th
e re
stric
tion
num
ber.
Ban
k w
ill c
heck
it o
nce
a ye
ar.
Synd
icat
ed L
oan
Prin
ce H
ousi
ng (A
)M
ega
Inte
rnat
iona
l C
omm
erci
al B
ank
and
othe
r 7
finan
cial
inst
itutio
ns (B
)
Dec
14,
201
0To
tal a
mou
nt is
36
billi
on.
Cur
rent
ratio
, deb
t rat
io, a
nd in
tere
st c
over
age
ratio
cou
ldn’
t low
er th
an th
e re
stric
tion
num
ber.
Ban
k w
ill c
heck
it o
nce
a ye
ar.
Coo
pera
tion
in
the
cons
truct
ion
of h
ousi
ng
Prin
ce H
ousi
ng (A
)Ta
iwan
Sug
ar C
orpo
ratio
n (B
)
Jul 1
1, 2
011
Jul 2
2, 2
011
Sep
2, 2
011
Mai
nly
for t
he tr
ansa
ctio
n of
Fen
g Sh
eng
Min
g D
ing
Lot N
o. 1
1 &
12,
Q
iao
Tou
Hou
Bi T
ian
Lot N
o. 4
8 &
51
, and
Qia
o To
u Q
iao
Chu
ng L
ot
No.
117
& 1
18.
Agr
eed
to p
ay fo
r the
con
stru
ctio
n an
d sa
les
rela
ted
expe
nses
. No
com
pens
atio
n fo
r any
re
ason
. Acc
ordi
ng to
the
cont
ract
, nee
d to
pay
for
the
depo
sit o
f $27
,370
, $63
,480
, and
$92
,780
.
Coo
pera
tion
in
the
cons
truct
ion
of h
ousi
n
Prin
ce H
ousi
ng (A
)Sh
ui-P
in, T
sai (
B)
July
12,
201
1M
ainl
y fo
r the
tran
sact
ion
of Y
u X
ian
Sec
Lot N
o. 5
2 of
Tai
Pin
g D
istri
ct (T
aich
ung)
Acc
ordi
ng to
the
cont
ract
, tot
al d
epos
it is
$8
3,93
0. A
s of
Dec
31,
201
2, th
e ba
lanc
e of
de
posi
t was
$83
,930
.
Coo
pera
tion
in
the
cons
truct
ion
of h
ousi
ng
Prin
ce H
ousi
ng (A
)Ts
ai-Y
uan,
Fan
g (B
)W
orld
Vis
ion
Uni
ted
Co.
, Lt
d (B
)
Mar
ch 5
, 201
2Ju
ly 1
7, 2
012
Mai
nly
for t
he tr
ansa
ctio
n of
Zh
i San
Sec
. Lot
No.
602
& 5
72 o
f Sh
i Lin
Dis
trict
(Tai
pei)
Acc
ordi
ng to
the
cont
ract
, nee
d to
pay
for t
he
depo
sit o
f $35
0,00
0 an
d $1
9,57
0. A
s of
Dec
31,
20
12, t
he b
alan
ce o
f dep
osit
was
$35
0,00
0 an
d $1
9,57
0.
Annual Report 2012VI
Financial Information
Prince Housing & Development Corp . Annual Report 2012
65
VI. Financial Information6.1 Five-Year Financial Summary6.1.1 Condensed Balance Sheet and Statement of Income Condensed Balance Sheet
Five-Year Financial Summary 1/1/2011-3/31/20132008 2009 2010 2011 2012
Current assets
N/A N/A N/A N/A N/A
22,442,598Real estate, factories, and facilities
7,024,424
Intangible assets 3,302,597Other assets 14,534,304Total assets 47,303,923
Current liabilities
Before distribution
15,133,587
After distribution
N/A
Non-current liabilities 14,876,719
Total liabilities
Before distribution
30,010,306
After distribution
N/A
Owner’s equity (parent company)
16,904,288
Capital stock 11,944,765Capital surplus 521293
Retained earnings
Before distribution
2,852,387
After distribution
N/A
Other equity 1,646,283Treasure stock (60,440)Non-controlling equity 389,329
Total shareholders’equity
Before distribution
17,293,617
After distribution
N/A
Item
Year
Unit;NT $ thousands
66
Five-Year Financial Summary 1/1/2013-3/31/20132008 2009 2010 2011 2012
Operating revenue
N/A N/A N/A N/A N/A
2,576,417Gross profit 866,440Operating Revenue 146,104Non-operating income & expense
(39,756)
Pre-tax income 106,348Income from operations of continuedsegments - after tax
104,106
Income from discontinued departments
0
Net profit 104,106Other income (after tax) 55,836Total net income 159,942Net profit (parent company)
99,478
Net profit (non-controlling equity)
4,628
Net income (parent company)
155,314
Net income (non-controlling equity)
4,628
Earnings per share 0.09
Item
Year
Prince Housing & Development Corp . Annual Report 2012
67
Five-Year Financial Summary
2008 2009 2010 2011 2012Current assets 16,680,226 16,487,721 20,045,183 24,919,460 21,001,978Funds & Long-term investments
6,221,574 5,931,797 5,200,606 6,296,090 7,100,375
Non current – other financial assets 53,038 243,798 216,322 147,983 808,337
Fixed assets 8,677,702 9,630,882 9,607,662 9,943,368 9,660,797Intangible assets 2,426 1,213 0 0 0Other assets 1,173,614 1,154,503 1,147,121 1,212,838 1,609,587Total assets 32,808,580 33,449,914 36,216,894 42,519,739 40,181,074
Current liabilities
Before distribution 14,336,359 12,111,645 11,194,644 17,059,144 13,505,717
After distribution 14,336,359 12,303,227 12,091,249 17,602,088 -
Long-term liabilities 7,907,605 10,064,113 11,843,008 10,102,875 9,522,182Other liabilities 135,221 173,492 182,530 188,869 203,348
Total liabilities
Before distribution 22,379,185 22,349,250 23,220,182 27,350,888 23,231,247
After distribution 22,379,185 22,540,832 24,116,787 27,893,832
Capital stock 9,579,108 9,579,108 9,962,272 10,858,877 11,944,765Capital surplus 674,559 680,469 521,293 521,293 521,293
Retained earnings
Before distribution 219,853 830,111 2,539,453 3,060,374 3,208,115
After distribution 219,853 638,529 746,243 1,431,542 -
Unrealized gain or loss on financial instruments 34,325 110,515 111,427 851,992 1,416,607
Cumulative translation adjustments 1,615 (12,370) (44,451) (30,317) (43,643)
Net loss unrecognized as pension cost (19,625) (26,729) (32,842) (32,928) (36,870)
Treasure stock (60,440) (60,440) (60,440) (60,440) (60,440)
Total shareholders’equity
Before distribution 10,429,395 11,100,664 12,996,712 15,168,851 16,949,827
After distribution 10,429,395 10,909,082 12,100,107 14,625,9071 -
Item
Year
Note 1: The shareholders’ meeting has not yet determined the distribution of 2011 retained earnings.
6.1.2 Five-Year Financial Summary - Domestic Financial Accounting Principle Condensed Balance Sheet - Domestic Financial Accounting Principle
Unit;NT $ thousands
68
Condensed Statement of Income - Domestic Financial Accounting Principle
Five-Year Financial Summary 1/1/2012-3/31/20122008 2009 2010 2011 2012
Operating revenue 7,227,721 7,651,315 10,569,802 9,023,105 7,892,497 1,611,076Gross profit 2,201,100 2,088,677 4,160,620 3,662,849 3,216,120 772,145162,324Income from operations 1,299,314 1,100,783 2,713,925 2,234,846 1,559,811 529,917
Non-op38,869erating income 339,329 266,316 197,728 497,591 679,538 104,624
Non-operating( expenses (1,910,085) (741,358) (764,225) (412,080) (403,376) (110,955)
Income from operations of continued segments - before tax
(271,412) 625,741 2,147,428 2,320,357 1,835,973 523,586
Income from operations of continuedsegments - after tax
(271,470) 603,258 2,130,822 2,314,131 1,785,930 523,586
(612,105) 893,223 2,143,331 2,117,626 1,991,605 706,852
Income from discontinued departments 0 0 0 0 0 0
Extraordinary gain or loss 0 0 0 0 0 0
Cumulative effect of accounting principle changes
0 0 0 0 0 0
Net income(271,470) 603,258 2,130,822 2,314,131 1,785,930 523,586(612,105) 893,223 2,413,331 2,117,626 1,991,605 709,852
Earnings per share(0.23) 0.52 1.84 1.99 1.54 0.50(0.51) 0.75 2.02 1.77 1.67 0.65
Item
Year
Unit;NT $ thousands (Except EPS as NT$)
Year CPA Firm CPA's Name Auditing Opinion2008 PWC Taiwan K.H. Wang & Z.M. Liu Non-standard unqualified opinion2009 PWC Taiwan Y.L. Wu & K.H. Wang Non-standard unqualified opinion2010 PWC Taiwan Y.C. Lin & S.C. Chang Non-standard unqualified opinion2011 PWC Taiwan Y.C. Lin & S.C. Chang Non-standard unqualified opinion2012 PWC Taiwan Y.C. Lin & K.H. Wang Non-standard unqualified opinion
6.1.3 Auditors’ Opinions from 2008 to 2012
Prince Housing & Development Corp . Annual Report 2012
69
Financial analysis in the past five years 1/1/2013-3/31/20132008 2009 2010 2011 2012
Financial structure (%)
Ratio of liabilities to assets
N/A N/A N/A N/A N/A
63Ratio of long-term capital to fixed assets
458
Solvency (%)
Current ratio 148Quick ratio 43Times interest earned ratio 1.51
Operating ability
Accounts receivable turnover (turns)
1.25
Average collection period 72Inventory turnover (turns) 0.13Accounts payable turnover (turns) 0.56
Average days in sales 702Fixed assets turnover (turns) 0.37Total assets turnover (turns) 0.05
Ratio to issued
capital (%)
Return on total assets (%) 0.38Return on stockholders' equity (%) 0.60
Operating income 1.22
Pre-tax income 0.89
Profit ratio (%) 4.04Earnings per share ($) 0.09
Cash flow
Cash flow ratio (%) 0.13Cash flow adequacy ratio (%)
31.09
Cash reinvestment ratio (%) 0.10
LeverageOperating leverage 4.59Financial leverage 2.79
Analysis of financial ratio change in the last two years. (If the difference does not exceed 20%, the analysis is not required.)
Ratio to issued capital
(%)
6.1.2 Five-Year Financial Analysis6.2.1 Financial Analysis
Item
Year
70
6.2.2 Financial Analysis - Domestic Financial Accounting Principle
Financial analysis in the past five years
2008 2009 2010 2011 2012
Financial structure (%)
Ratio of liabilities to assets 68 67 64 64 58Ratio of long-term capital to fixed assets
211 220 259 254 274
Solvency (%)
Current ratio 116 136 179 146 156Quick ratio 8 13 18 12 54Times interest earned ratio 0.45 2.53 8.62 6.74 5.62
Operating ability
Accounts receivable turnover (turns) 7.83 24.50 21.95 14.01 6.76Average collection period 47 15 17 26 54Inventory turnover (turns) 0.33 0.38 0.40 0.27 0.26Accounts payable turnover (turns) 2.97 3.84 5.94 5.74 2.68Average days in sales 1106 960 903 1352 1404Fixed assets turnover (turns) 1.02 0.84 1.10 0.92 0.81Total assets turnover (turns) 0.23 0.23 0.30 0.23 0.19
Ratio to issued capital
(%)
Return on total assets (%) 0.3 2.75 6.79 6.73 5.12Return on stockholders' equity (%) (3) 6 18 16 11
Operating income 14 11 27 21 13
Pre-tax income (3) 7 22 21 15
Profit ratio (%) (4) 8 20 26 23
Earnings per share ($)(0.23) 0.52 1.84 1.99 1.54(0.51) 0.75 2.02 1.77 -
Cash flowCash flow ratio (%) 12.57 30.09 10.64 - 61.88Cash flow adequacy ratio (%) 8.84 46.97 42.02 22.60 83.94Cash reinvestment ratio (%) 9.42 19.26 4.15 - 32.84
LeverageOperating leverage 1.31 1.43 1.25 1.32 1.48Financial leverage 1.65 1.59 1.12 1.22 1.34
Item
Year
Ratio to issued capital
(%)
Prince Housing & Development Corp . Annual Report 2012
71
6.3 Supervisors’ Report in the Most Recent Year
To: The General Meeting of Shareholders as of year 2012
The undersigned has duly audited the Operating Report, Financial Statements and Schedule
of Earnings Distribution prepared by the Board of Directors for the year of 2012, and found
the same to be true and correct. Therefore, the Supervisors’ Report is hereby issued in
accordance with Article 219 of Company Law.
Prince Housing & Development Corp.
Supervisors:
Ying-Na, Zhuang
Da-Xiong, Xu
March 15th, 2013
72
PRINCE HOUSING & DEVELOPMENT CORP.
NON-CONSOLIDATED FINANCIAL STATEMENTS
AND REPORT OF INDEPENDENTACCOUNTANTS
DECEMBER 31, 2012 AND 2011
For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.
Prince Housing & Development Corp . Annual Report 2012
73
REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE
To the Board of Directors and Stockholders of Prince Housing & Development Corp.
We have audited the accompanying non-consolidated balance sheets of Prince Housing & Development Corp. as of December 31, 2012 and 2011, and the related non-consolidated statements of income, of changes in stockholders’ equity and of cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the 2012 and 2011 financial statements of certain long-term investments accounted for under the equity method. These long-term equity investments amounted to NT$1,151,315 thousand and NT$1,290,718 thousand as of December 31, 2012 and 2011, respectively, and the related net investment income amounted to NT$137,387 thousand and NT$383,302 thousand for the years then ended. The financial statements of these investee companies were audited by other auditors whose reports thereon have been furnished to us and our opinion expressed herein, insofar as it relates to the amounts included in the financial statements and the information disclosed in Note 11 relative to these long-term investments, is based solely on the reports of the other auditors.
We conducted our audits in accordance with the “Regulations Governing the Examination of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China. Those standards and rules require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audits and reports of other auditors, the non-consolidated financial statements referred to above present fairly, in all material respects, the financial position of Prince Housing & Development Corp. as of December 31, 2012 and 2011, and the results of its operations and its cash flows for the years then ended in conformity with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and generally accepted accounting principles in the Republic of China.
74
We have also audited the consolidated financial statements of Prince Housing & Development Corp. and its subsidiaries (not presented herein) as of and for the years ended December 31, 2012 and 2011.In our report dated March 15, 2013, we expressed a modified unqualified opinion on those statements.
PricewaterhouseCoopers, Taiwan March 15, 2013
The accompanying non-consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying non-consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
Prince Housing & Development Corp . Annual Report 2012
75
PRINCE HOUSING & DEVELOPMENT CORP.NON-CONSOLIDATED BALANCE SHEETS
DECEMBER 31(Expressed in thousands of New Taiwan dollars)PRINCE HOUSING & DEVELOPMENT CORP.
NON-CONSOLIDATED BALANCE SHEETSDECEMBER 31
(Expressed in thousands of New Taiwan dollars)
2012 2011ASSETS Notes AMOUNT % AMOUNT %
~3~
Current AssetsCash and cash equivalents 4(1) $ 3,611,373 9 $ 281,987 1Financial assets at fair value through profit or loss -
current4(2) and 6
- - 76,027 -Notes receivable, net 3 and 4(3) 120,032 - 47,031 -Accounts receivable, net 3 and 4(4) 1,407,766 4 573,674 2Accounts receivable - related parties 3 and 5 185,560 - - -Other receivables 3 1,233,941 3 958,531 2Other financial assets - current 6 782,612 2 85,644 -Inventories, net 4(5), 5 and 6 13,041,773 32 22,594,959 53Prepayments 618,921 2 301,607 1
Total current assets 21,001,978 52 24,919,460 59
Funds and InvestmentsFinancial assets at fair value through profit or loss -
non-current4(2) and 6
76,593 - - -Available-for-sale financial assets - non-current 4(6) and 6 1,489,350 4 971,816 2Financial assets carried at cost - non-current 4(7) and 6 932,135 2 999,664 2Long-term equity investments accounted for under
the equity method4(8) and 6
4,331,179 11 4,053,492 10Investments in real estate 4(9) and 6 271,118 1 271,118 1Other financial assets - non-current 6 808,337 2 147,983 -
Total funds and investments 7,908,712 20 6,444,073 15
Property, Plant and Equipment, net 4(10) and 6Costs
Land 122,657 - 122,657 -Buildings 401,309 1 401,309 1Computer equipment 49,471 - 39,324 -Transportation equipment 6,367 - 14,807 -Office equipment 370,188 1 369,680 1Property held for lease - Land 3,181,239 8 3,243,202 8Property held for lease - Building 6,670,114 17 6,702,320 16Leasehold improvements 47,000 - 47,000 -Other equipment 1,970 - 1,945 -
Cost and revaluation increments 10,850,315 27 10,942,244 26Less: Accumulated depreciation ( 1,189,518 )( 3 )( 998,876 )( 3 )
Total property, plant and equipment, net 9,660,797 24 9,943,368 23
Other AssetsRefundable deposits 7 492,761 1 85,860 -Other assets - other 5 and 6 1,116,826 3 1,126,978 3
Total other assets 1,609,587 4 1,212,838 3
TOTAL ASSETS $ 40,181,074 100 $ 42,519,739 100
(Continued)
76
PRINCE HOUSING & DEVELOPMENT CORP.NON-CONSOLIDATED BALANCE SHEETS
DECEMBER 31(Expressed in thousands of New Taiwan dollars)PRINCE HOUSING & DEVELOPMENT CORP.
NON-CONSOLIDATED BALANCE SHEETSDECEMBER 31
(Expressed in thousands of New Taiwan dollars)
2012 2011LIABILITIES AND STOCKHOLDERS' EQUITY Notes AMOUNT % AMOUNT %
The accompanying notes are an integral part of these non-consolidated financial statements.See report of independent accountants dated March 15, 2013.
~4~
Current LiabilitiesShort-term loans 4(11) and 6 $ 3,820,000 10 $ 5,367,400 13Notes and bills payable 4(12) and 6 1,653,227 4 1,380,669 3Notes payable 16,220 - 135,112 -Accounts payable 2,092,087 5 750,687 2Accounts payable - related parties 5 424,886 1 75,893 -Income tax payable 4(21) 37,775 - 3,001 -Accrued expenses 683,918 2 437,679 1Other payables - related parties 5 - - 240,000 1Other payables 2,910 - 3,225 -Receipts in advance 4(13) 1,611,334 4 4,819,011 11Long-term liabilities - current portion 4(15) and 6 3,094,284 8 3,812,079 9Other current liabilities 69,076 - 34,388 -
Total current liabilities 13,505,717 34 17,059,144 40
Long-term LiabilitiesBonds payable 4(14) 2,000,000 5 - -Long-term loans 4(15) and 6 7,522,182 19 10,102,875 24
Total long-term liabilities 9,522,182 24 10,102,875 24
Other LiabilitiesAccrued pension liabilities 4(16) 67,507 - 58,682 -Guarantee deposits received 135,841 - 130,187 -
Total other liabilities 203,348 - 188,869 -
TOTAL LIABILITIES 23,231,247 58 27,350,888 64
Stockholders' EquityCapital
Common stock 1 and 4(17) 11,944,765 30 10,858,877 26Capital Reserves 4(18)
Additional paid-in capital - treasury stocktransactions 514,061 1 514,061 1
Capital reserve - other 7,232 - 7,232 -Retained Earnings 4(17)(19)
Legal reserve 843,650 2 612,237 1Undistributed earnings 2,364,465 6 2,448,137 6
Other Adjustments to Stockholders' EquityCumulative translation adjustments ( 43,643 ) - ( 30,317 ) -Unrecognized pension cost 4(16) ( 36,870 ) - ( 32,928 ) -Unrealized gain or loss on financial instruments 4(6) 1,416,607 3 851,992 2
Treasury stock 4(20) ( 60,440 ) - ( 60,440 ) -
TOTAL STOCKHOLDERS' EQUITY 16,949,827 42 15,168,851 36
Commitments and Contingent Liabilities 5 and 7TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 40,181,074 100 $ 42,519,739 100
Prince Housing & Development Corp . Annual Report 2012
77
PRINCE HOUSING & DEVELOPMENT CORP.NON-CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars, except for earning per share data)PRINCE HOUSING & DEVELOPMENT CORP.
NON-CONSOLIDATED STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31
(Expressed in thousands of New Taiwan dollars, except for earning per share data)
2012 2011Notes AMOUNT % AMOUNT %
The accompanying notes are an integral part of these non-consolidated financial statements.See report of independent accountants dated March 15, 2013.
~5~
Operating Revenue 5Construction revenues $ 7,166,541 91 $ 8,336,145 92
Other operating revenues 725,956 9 686,960 8
Total Operating Revenues 7,892,497 100 9,023,105 100
Operating Costs 4(23) and 5Construction costs ( 4,527,939 )( 57 ) ( 5,177,346 )( 57 )
Other operating costs ( 148,438 )( 2 ) ( 182,910 )( 2 )
Total Operating Costs ( 4,676,377 )( 59 ) ( 5,360,256 )( 59 )
Gross profit 3,216,120 41 3,662,849 41
Operating Expenses 4(23)Sales and marketing expenses ( 534,567 )( 7 ) ( 555,381 )( 6 )
General and administrative expenses ( 1,121,742 )( 14 ) ( 872,622 )( 10 )
Total Operating Expenses ( 1,656,309 )( 21 ) ( 1,428,003 )( 16 )
Operating income 1,559,811 20 2,234,846 25
Non-operating Income and GainsInterest income 5 and 7 37,635 - 31,955 -
Investment income accounted for underthe equity method
4(8)448,949 6 344,930 4
Dividend income 76,243 1 7,652 -
Gain on disposal of investments 567 - 3,444 -
Gain on valuation of financial assets 4(2) 566 - 27 -
Other non-operating income 115,578 1 109,583 1
Total non-operating Income andGains 679,538 8 497,591 5
Non-operating Expenses and LossesInterest expense 4(5) and 5 ( 397,688 )( 5 ) ( 404,370 )( 4 )
Foreign exchange losses, net - - ( 477 ) -
Impairment loss 4(7) - - ( 5,321 ) -
Other non-operating losses ( 5,688 ) - ( 1,912 ) -
Total non-operating Expenses andLosses ( 403,376 )( 5 ) ( 412,080 )( 4 )
Income before income tax 1,835,973 23 2,320,357 26
Income tax expense 4(21) ( 50,043 ) - ( 6,226 ) -
Net income $ 1,785,930 23 $ 2,314,131 26
Before Tax After Tax Before Tax After TaxBasic Earnings per Share (in dollars) 4(22)
Net income $ 1.58 $ 1.54 $ 2.00 $ 2.00
Diluted Earnings per Share (in dollars) 4(22)Net income $ 1.58 $ 1.54 $ 2.00 $ 1.99
Assuming the Company treated the stocks held by a subsidiary as long-term investments rather than treasury stock, the pro formainformation is as follows:
Net income $ 2,041,648 $ 1,991,605 $ 2,123,852 $ 2,117,626
Basic Earnings Per Share (in dollars)Net income $ 1.71 $ 1.67 $ 1.78 $ 1.77
The accompanying notes are an integral part of these non-consolidated financial statements.See report of independent accountants dated March 15, 2013.
78
PRIN
CEHO
USI
NG
&D
EVEL
OPM
ENT
CORP
.N
ON
-CO
NSO
LID
ATED
STAT
EMEN
TSO
FCH
ANG
ESIN
STO
CKHO
LDER
S’EQ
UIT
YFO
RTH
EY
EARS
END
EDD
ECEM
BER
31(E
xpre
ssed
inth
ousa
ndso
fNew
Taiw
ando
llars
)
Capi
talr
eser
ves
Reta
ined
earn
ings
Oth
erad
justm
ents
tosto
ckho
lder
s’eq
uity
Com
mon
stock
Addi
tiona
lpa
id-in
capi
tal-
treas
ury
stock
trans
actio
nsCa
pita
lres
erve
-oth
erLe
galr
eser
veU
ndist
ribut
edea
rnin
gs
Cum
ulat
ive
trans
latio
nad
justm
ents
Unr
ecog
nize
dpe
nsio
nco
st
Unr
ealiz
edga
inor
loss
onfin
anci
alin
strum
ents
Trea
sury
stock
Tota
l
Not
e:Th
eem
ploy
ees'
bonu
sesw
ere$
38,3
55an
d$4
1,65
4an
ddi
rect
ors'
and
supe
rvisi
ors'
rem
uner
atio
nw
ere$
57,5
32an
d$6
2,48
2in
2011
and
2010
,res
pect
ivel
yw
hich
had
been
dedu
cted
from
neti
ncom
efo
rthe
year
.
Thea
ccom
pany
ing
note
sare
anin
tegr
alpa
rtof
thes
eno
n-co
nsol
idat
edfin
anci
alsta
tem
ents.
Seer
epor
tofi
ndep
ende
ntac
coun
tant
sdat
edM
arch
15,2
013.
~6~
2011 Ba
lanc
eatJ
anua
ry1,
2011
$9,
962,
272
$51
4,06
1$
7,23
2$
399,
155
$2,
140,
298
($44
,451
)($
32,8
42)
$11
1,42
7($
60,4
40)
$12
,996
,712
Dist
ribut
ion
of20
10ne
tinc
ome(
Not
e):
Lega
lres
erve
--
-21
3,08
2(
213,
082)
--
--
-
Cash
divi
dend
s-
--
-(
896,
605)
--
--
(89
6,60
5)
Stoc
kdi
vide
nds
896,
605
--
-(
896,
605)
--
--
-
Net
inco
me
for2
011
--
--
2,31
4,13
1-
--
-2,
314,
131
Cum
ulat
ivet
rans
latio
nad
justm
ents
--
--
-14
,134
--
-14
,134
Unr
ecog
nize
dpe
nsio
nco
st-
--
--
-(
86)
--
(86
)
Unr
ecog
nize
dga
inon
finan
cial
instr
umen
ts-
--
--
--
740,
565
-74
0,56
5
Bala
ncea
tDec
embe
r31,
2011
$10
,858
,877
$51
4,06
1$
7,23
2$
612,
237
$2,
448,
137
($30
,317
)($
32,9
28)
$85
1,99
2($
60,4
40)
$15
,168
,851
2012 Ba
lanc
eatJ
anua
ry1,
2012
$10
,858
,877
$51
4,06
1$
7,23
2$
612,
237
$2,
448,
137
($30
,317
)($
32,9
28)
$85
1,99
2($
60,4
40)
$15
,168
,851
Dist
ribut
ion
of20
11ne
tinc
ome(
Not
e):
Lega
lres
erve
--
-23
1,41
3(
231,
413)
--
--
-
Cash
divi
dend
s-
--
-(
542,
944)
--
--
(54
2,94
4)
Stoc
kdi
vide
nds
1,08
5,88
8-
--
(1,
085,
888)
--
--
-
Adju
stmen
tofr
etai
ned
earn
ings
duet
och
ange
inow
ners
hip
ofsu
bsid
iarie
s-
--
-(
9,35
7)
--
--
(9,
357)
Net
inco
me
for2
012
--
--
1,78
5,93
0-
--
-1,
785,
930
Cum
ulat
ivet
rans
latio
nad
justm
ents
--
--
-(
13,3
26)
--
-(
13,3
26)
Unr
ecog
nize
dpe
nsio
nco
st-
--
--
-(
3,94
2)
--
(3,
942)
Unr
ecog
nize
dga
inon
finan
cial
instr
umen
ts-
--
--
--
564,
615
-56
4,61
5
Bala
ncea
tDec
embe
r31,
2012
$11
,944
,765
$51
4,06
1$
7,23
2$
843,
650
$2,
364,
465
($43
,643
)($
36,8
70)
$1,
416,
607
($60
,440
)$16
,949
,827
PRIN
CE
HO
USI
NG
& D
EVEL
OPM
ENT
CO
RP.
NO
N-C
ON
SOLI
DAT
ED S
TATE
MEN
TS O
F C
HA
NG
ES IN
STO
CK
HO
LDER
S’ E
QU
ITY
FOR
TH
E Y
EAR
S EN
DED
DEC
EMB
ER 3
1(E
xpre
ssed
in th
ousa
nds
of N
ew T
aiw
an d
olla
rs)
Not
e: T
he e
mpl
oyee
s' bo
nuse
s w
ere
$38.
355
and
$41,
654
and
dire
ctor
s' an
d su
perv
isor
s' re
mm
uner
atio
n w
ere
$57,
532
and
$62,
482
in 2
011
and
2010
, res
pect
ivel
y, w
hich
hav
e be
en d
educ
ted
from
the
stat
emen
t of i
ncom
e .
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
se n
on-c
onso
lidat
ed fi
nanc
ial s
tate
men
ts.
See
repo
rt of
inde
pend
ent a
ccou
ntan
ts d
ated
Mar
ch 1
5, 2
013.
Prince Housing & Development Corp . Annual Report 2012
79
PRINCE HOUSING & DEVELOPMENT CORP.NON-CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
PRINCE HOUSING & DEVELOPMENT CORP.NON-CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
2012 2011
~7~
CASH FLOWS FROM OPERATING ACTIVITIESNet income $ 1,785,930 $ 2,314,131
Adjustments to reconcile net income to net cash provided by(used in) operating activitiesGain on valuation of financial assets ( 566 ) ( 27 )
Reversal of allowance for doubtful accounts - ( 21,098 )
Provision for (reversal of) inventory obsolescence and valuedecline ( 28,252 ) 34,054
Impairment loss on financial assets carried at cost - 5,321
Investment income accounted for under the equity method ( 448,949 ) ( 344,930 )
Cash dividend from equity subsidiaries 180,000 -
Gain of disposal of investments ( 567 ) ( 3,444 )
Depreciation 202,230 234,450
(Gain) loss on disposal of property, plant and equipment ( 1,017 ) 54
Changes in assets and liabilitiesFinancial assets at fair value through profit or loss - current 76,027 ( 76,000 )
Notes receivable ( 73,001 ) 17,810
Accounts receivable ( 834,092 ) 7,232
Accounts receivable - related parties ( 185,560 ) -
Other receivables ( 275,410 ) ( 351,999 )
Inventories 9,671,845 ( 5,683,193 )
Prepayments ( 317,314 ) 244,041
Financial assets at fair value through profit or loss -non-current ( 76,027 ) -
Notes payable ( 118,892 ) 5,351
Accounts payable 1,341,400 51,046
Accounts payable - related parties 348,993 ( 1,815 )
Income tax payable 34,774 3,001
Accrued expenses 246,239 ( 43,258 )
Other payables ( 315 ) ( 73,454 )
Receipts in advance ( 3,207,677 ) 723,492
Other current liabilities 34,688 ( 9,632 )
Accrued pension liabilities 2,823 ( 4,829 )
Net cash provided by (used in) operating activities 8,357,310 ( 2,973,696 )
(Continued)
80
PRINCE HOUSING & DEVELOPMENT CORP.NON-CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
PRINCE HOUSING & DEVELOPMENT CORP.NON-CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
2012 2011
The accompanying notes are an integral part of these non-consolidated financial statements.See report of independent accountants dated March 15, 2013.
~8~
CASH FLOWS FROM INVESTING ACTIVITIESDecrease in other receivables - related parties $ - $ 413,600Increase in other financial assets - current ( 696,968 ) ( 85,644 )Increase in available-for-sale financial assets - non-current - ( 975 )Proceeds from capital reduction of financial assets carried at cost 67,529 6,237Increase in long-term investments - subsidiaries ( 170,254 ) ( 8,403 )Proceeds from capital reduction of subsidiaries 185,000 -Proceeds from disposal of long-term investments - subsidiaries 3,541 -Proceeds from capital reduction of subsidiaries - 6,840(Increase) decrease in other financial assets - non-current ( 660,354 ) 68,339Cash paid for acquisition of property, plant and equipment ( 11,098 ) ( 14,608 )Proceeds from disposal of property, plant and equipment 2,049 7Increase in refundable deposits ( 406,901 ) ( 73,272 )Decrease in other assets - other 10,152 7,555
Net cash (used in) provided by investing activities ( 1,677,304 ) 319,676CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term loans ( 1,547,400 ) 1,257,050Increase in notes and bills payable 272,558 565,994(Decrease) increase in other payables - related parties ( 240,000 ) 240,000Increase in bonds payable 2,000,000 -(Decrease) increase in long-term loans ( 3,298,488 ) 1,406,592Increase in guarantee deposits 5,654 9,652Payment of cash dividends ( 542,944 ) ( 896,605 )
Net cash (used in) provided by financing activities ( 3,350,620 ) 2,582,683Increase (decrease) in cash and cash equivalents 3,329,386 ( 71,337 )Cash and cash equivalents at beginning of year 281,987 353,324Cash and cash equivalents at end of year $ 3,611,373 $ 281,987
Supplemental disclosures of cash flow information1.Interest paid $ 535,263 $ 484,555
Interest capitalized ( 146,743 ) ( 82,594 )Interest paid (excluding capitalized interest) $ 388,520 $ 401,961
2.Income tax paid $ 15,269 $ 3,225
Non-cash flows from investing and financing activities1.Property, plant and equipment transferred from prepaid building
and land $ - $ 619,605
2.Buildings and land held for sale transferred from property heldfor lease and property, plant and equipment $ 90,407 $ 63,996
3.Financial assets carried at cost - non-current transferred to theavailable-for-sale financial assets - non-current $ - $ 84,780
The accompanying notes are an integral part of these non-consolidated financial statements.See report of independent accountants dated March 15, 2013.
Prince Housing & Development Corp . Annual Report 2012
81
PRINCE HOUSING & DEVELOPMENT CORP. NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)
1. HISTORY AND ORGANIZATION
Prince Housing & Development Corp. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.) in September 1973. As of December 31, 2012, the Company’s authorized capital was $16,000,000 and the paid-in capital was $11,944,765, consisting of 1,194,476 thousand shares of common stock with a par value of $10 (in NT dollars) per share. The Company is primarily engaged in the construction, leasing and sale of public housing, commercial building, tourism/recreation place (children’s playground, water park, etc.) and parking lot/parking tower, and leasing and sale of real estate. The common shares of the Company have been listed on the Taiwan Stock Exchange since April 1991. As of December 31, 2012 and 2011, the Company had 246 and 235 employees, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are prepared in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and generally accepted accounting principles in the Republic of China. The Company’s significant accounting policies are summarized as follows:(1) Foreign currency transactions A. Transactions denominated in foreign currencies are translated into functional currency at the spot
exchange rates prevailing at the transaction dates. Exchange gains or losses due to the difference between the exchange rate on the transaction date and the exchange rate on the date of actual receipt and payment are recognized in current year’s profit or loss.
B. Receivables, other monetary assets and liabilities denominated in foreign currencies are translated at the spot exchange rates prevailing at the balance sheet date. Exchange gains or losses are recognized in profit or loss.
(2) Classification of current and non-current items A. If assets and liabilities are related to the construction business, they are classified as current or
non-current according to their operating cycle; if they are not related to the construction business, they are classified by annual basis.
B. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: (a) Assets arising from operating activities that are expected to be realized or consumed, or are
intended to be sold within the normal operating cycle; (b) Assets held mainly for trading purposes; (c) Assets that are expected to be realized within twelve months from the balance sheet date; (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are
to be exchanged or used to pay off liabilities more than twelve months after the balance sheet
82
date. C. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they
are classified as non-current liabilities: (a) Liabilities arising from operating activities that are expected to be paid off within the normal
operating cycle; (b) Liabilities arising mainly from trading activities; (c) Liabilities that are to be paid off within twelve months from the balance sheet date; (d) Liabilities for which the repayment date cannot be extended unconditionally to more than
twelve months after the balance sheet date.
(3) Cash and cash equivalents A. Cash and cash equivalents include cash on hand and in banks and other short-term highly liquid
investments which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value resulting from fluctuations in interest rate.
B. The Company’s statement of cash flows is prepared on the basis of cash and cash equivalents.
(4) Financial assets and financial liabilities at fair value through profit or loss A. Financial assets and financial liabilities at fair value through profit or loss are recognized and
derecognized using settlement date accounting and are recognized initially at fair value. B. These financial instruments are subsequently remeasured and stated at fair value, and the gain
or loss is recognized in profit or loss. The fair value of listed stocks, OTC stocks and closed-end mutual funds is based on latest quoted fair prices of the accounting period. The fair value of open-end and balanced mutual funds is based on the net asset value at the balance sheet date.
C. When a derivative is an ineffective hedging instrument, it is initially recognized at fair value on the date a derivative contract is entered into and is subsequently remeasured at its fair value. If a derivative is a non-option derivative, the fair value initially recognized is zero.
D. Financial assets and financial liabilities at fair value through profit and loss are classified into asset or liability held for trading and those designated at fair value through profit or loss at inception. Financial assets and financial liabilities are classified as held for trading if acquired principally for the purpose of selling in the short term. Financial assets and financial liabilities designated as at fair value through profit or loss at inception are those that are managed and whose performance is evaluated on a fair value basis, in accordance with a documented Company’s investment strategy. Information about these financial assets and financial liabilities are provided internally on a fair value basis to the Company’s management. The Company’s investment strategy is to invest free cash resources in equity securities or convertible bonds as part of the Company’s long-term capital growth strategy. The Company has designated almost all of its compound debt instruments as financial liability at fair value through profit and loss.
(5) Available-for-sale financial assets A. Available-for-sale financial assets in equity and debt are recognized and derecognized using trade
date accounting and settlement date accounting, respectively, and are initially stated at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
B. The financial assets are remeasured and stated at fair value, and the gain or loss is recognized in equity, until the financial asset is derecognized, at which time the cumulative gain or loss
Prince Housing & Development Corp . Annual Report 2012
83
previously recognized in equity shall be recognized in profit or loss. The fair value of listed stocks, OTC stocks and closed-end mutual funds are based on latest quoted fair prices of the accounting period. The fair values of open-end and balanced mutual funds are based on the net asset value at the balance sheet date.
C. If there is any objective evidence that the financial asset is impaired, the cumulative loss that had been recognized directly in equity shall be transferred from equity to profit or loss. When the fair value of an equity instrument subsequently increases, impairment losses recognized previously in profit or loss shall not be reversed. When the fair value of a debt instrument subsequently increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss shall be reversed to the extent of the loss recognized in profit or loss.
(6) Financial assets carried at cost A. Investment in unquoted equity instruments is recognized or derecognized using trade date
accounting and is stated initially at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
B. The investments in equity instruments, including unlisted stocks and emerging stocks, are measured at cost since their fair value cannot be measured reliably.
C. If there is any objective evidence that the financial asset is impaired, the impairment loss is recognized in profit or loss. Such impairment loss shall not be reversed when the fair value of the asset subsequently increases.
(7) Notes and accounts receivable, other receivables A. Notes and accounts receivable are claims resulting from the sale of goods or services.
Receivables arising from transactions other than the sale of goods or services are classified as other receivables. Notes and accounts receivable and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
B. The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. If such evidence exists, a provision for impairment of financial asset is recognized. The amount of impairment loss is determined based on the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the fair value of the asset subsequently increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss shall be reversed to the extent of the loss previously recognized in profit or loss. Such recovery of impairment loss shall not result to the asset’s carrying amount greater than its amortized cost where no impairment loss was recognized. Subsequent recoveries of amounts previously written off are recognized in profit or loss.
(8) Inventories The inventories include “land held for construction”, “construction in progress”, “buildings and land held for sale”. Gains or losses occurring from construction contracts are recognized using the percentage of completion method. Inventories are stated at cost and evaluated at the lower of cost
84
or net realizable value at the end of period. The individual item approach is used in the comparison of cost and net realizable value. The calculation of net realizable value is based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses. The interest costs related to construction in progress are capitalized during the construction.
(9) Accounting for construction A. Effective January 1, 2009, for the ‘off plan’ housing projects where the Company engages the
construction firm to construct, the profit or loss of the ‘off plan’ housing projects is recognized on a percentage-of-completion basis if the projects meet the criteria of the percentage-of-completion method recognition; for other projects of the ‘off plan’ housing projects, the costs and profit or loss of the projects are recognized using the completed-contract method when the ownership of the houses are transferred and the houses are handed over, or when the houses are handed over before the balance sheet date (or when the ownership of the houses are transferred before the balance sheet date), but the ownership of the houses are transferred subsequently after the balance sheet date (but the houses are handed over subsequently after the balance sheet date).
B. For the costs associated with the acquisition of the assets to be allocated over the period when the underlying assets will produce economic benefit to meet the revenue-cost (expense) matching principle, effective January 1, 2001, the Company capitalized interest incurred in accordance with ROC SFAS No. 3, “Borrowing Cost”.
C. The construction-use land refers to the land that is under construction or under planning to be constructed. Such land is stated at the acquisition costs, including the purchase proceeds of the land and all necessary costs to acquire the land.
D. The selling expenses incurred on the ‘off plan’ housing sale are recognized initially as “deferred selling expenses”, and are reclassified to “operating expenses” when revenue is recognized after the construction of houses is completed.
E. At the end of year, inventories are evaluated at the lower of cost or net realizable value, and the individual item approach is used in the comparison of cost and net realizable value. The calculation of net realizable value is based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses.
(10) Long-term equity investments accounted for under equity method A. Long-term equity investments in which the Company holds more than 20% of the investee
company’s voting shares or has the ability to exercise significant influence on the investee’s operational decisions are accounted for under the equity method.
B. Effective January 1, 2005, investment loss on the non-controlled entities over which the Company has the ability to exercise significant influence is recognized to the extent that the amount of long-term investments in such investees is written down to zero. However, if the Company continues to provide endorsements, guarantees or financial support for such investees, the investment loss is recognized continuously in proportion to the Company’s equity interest in such investees. In the case of controlled entities, the Company recognizes all the losses incurred by such entities that will not be covered by other stockholders. When the operations of such investees become profitable, the Company recognizes the profits until the amount of losses previously recognized by the Company is fully recovered.
Prince Housing & Development Corp . Annual Report 2012
85
C. Exchange differences arising from translation of the financial statements of overseas investee companies accounted for under the equity method are recorded as “cumulative translation adjustments” under stockholders’ equity.
D. Long-term equity investments in which the Company holds more than 50% of the investee company’s voting shares or has the ability to control the investee’s operational decision, in accordance with the Statement of Financial Accounting Standards (SFAS) No. 7, “Consolidated Financial Statements”, are accounted for under the equity method and included in the quarterly consolidated financial statements.
(11) Property, plant and equipment A. Property, plant and equipment are stated at cost. Interests incurred on the loans used to bring the
assets to the condition and location necessary for their intended uses are capitalized.B. Depreciation is provided under the straight-line method based on the assets’ estimated economic
service lives. The estimated economic service lives of property, plant and equipment are 44~60 years for property held for lease-building, 50~60 years for buildings, and 5~15 years for other property, plant and equipment.
C. Major improvements and renewals are capitalized and depreciated accordingly. Maintenance and repairs are expensed as incurred.
D. When an asset is sold or retired, the cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss on disposal is recorded as non-operating income or expense.
(12) Deferred assets Deferred assets are stated at cost and are amortized on a straight- line basis over 5 years.
(13) Impairment of non-financial assets The Company recognizes impairment loss when there is indication that the recoverable amount ofan asset is less than its carrying amount. The recoverable amount is the higher of the fair value less costs to sell and value in use. The fair value less costs to sell is the amount obtainable from the sale of the asset in an arm’s length transaction after deducting any direct incremental disposal costs. The value in use is the present value of estimated future cash flows to be derived from continuing use of the asset and from its disposal at the end of its useful life. When the impairmentno longer exists, the impairment loss recognized in prior years shall be recovered.
(14) Pension plan Under the defined benefit pension plan, net periodic pension costs are recognized in accordance with the actuarial calculations. Net periodic pension costs include service cost, interest cost, expected return on plan assets, and amortization of unrecognized net transition obligation and gains or losses on plan assets. Under the defined contribution pension plan, net periodic pension costs are recognized as incurred.
(15) Income tax A. Provision for income tax includes deferred income tax resulting from temporary differences,
investment tax credits and loss carryforward. Valuation allowance on deferred tax assets is
86
provided to the extent that it is more likely than not that the tax benefit will not be realized. Over or under provision of prior years’ income tax liabilities is included in current year’s income tax. When a change in the tax laws is enacted, the deferred tax liability or asset is recomputed accordingly in the period of change. The difference between the new amount and the original amount, that is, the effect of changes in the deferred tax liability or asset, is recognized as an adjustment to current income tax expense (benefit).B. Adjustments of prior years' income tax liabilities are included in the current year's income tax expense.
C. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
D. If the amount of regular income tax is more than or equal to the amount of basic tax, the income tax payable shall be calculated in accordance with the Income Tax Act and other relevant laws. Whereas the amount of regular income tax is less than the amount of basic tax, the income tax payable shall also include the difference between the amount of regular income tax and basic tax, in addition to the amount as calculated in accordance with the “Income Tax Act” and other relevant laws. The balance calculated in accordance with the provisions shall not allow for deductions claimed in regard to investment tax credits granted under the provisions of other laws.
(16) Treasury stock
A. When the Company acquires its issued and outstanding shares as treasury stocks, the book value of those treasury stocks is computed respectively on a weighted-average basis according to the type of shares (common shares) and the reason for reacquisition. Treasury stock transactions should be dealt with in the following ways: (a) Reacquisition: if the shares are purchased, they are stated at the acquisition cost; if the shares
are donated, they are stated at fair value. (b) Disposal: when treasury stocks are sold, if the selling price is above the book value, the
difference should be credited to the capital surplus-from treasury stock transactions account. If the selling price is below the book value, the difference should first be offset against capital surplus from the same class of treasury stock transactions, and the remainder, if any, debited to retained earnings.
(c) Write off: When a company’s treasury stock is retired, the treasury stock account should be credited, and the capital surplus-premium on stock account and capital stock account should be debited proportionately according to the share ratio. Any excess of the carrying value of treasury stock over the sum of its par value and premium on stock should first be offset against capital surplus from the same class of treasury stock transactions, and the remainder, if any, debited to retained earnings. Any excess of the sum of the par value and premium on stock of treasury stock over its carrying value should be credited to capital surplus from the same class of treasury stock transactions.
B. The Company adopted the Statement of Financial Accounting Standards No. 30, “Accounting for Treasury Stocks” since January 1, 2002, which requires the Company’s stocks held by subsidiaries should be treated as treasury stock when the Company recognizes investment income or loss and prepares financial statements.
(17) Employees’ bonuses and directors’ and supervisors’ remuneration Effective January 1, 2008, pursuant to EITF 96-052 of the Accounting Research and
Prince Housing & Development Corp . Annual Report 2012
87
Development Foundation, R.O.C., dated March 16, 2007, “Accounting for Employees’ Bonuses and Directors’ and Supervisors’ Remuneration”, the costs of employees’ bonuses and directors’ and supervisors’ remuneration are accounted for as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and the amounts can be estimated reasonably. However, if the accrued amounts for employees’ bonuses and directors’ and supervisors’ remuneration are significantly different from the actual distributed amounts resolved by the stockholders at their annual stockholders’ meeting subsequently, the differences shall be recognized as gain or loss in the following year. In addition, according to EITF 97-127 of the Accounting Research and Development Foundation, R.O.C., dated March 31, 2008, “Criteria forListed Companies in Calculating the Number of Shares of Employees’ Stock Bonus”, the Company calculates the number of shares of employees’ stock bonus based on the closing price of the Company's common stock at the previous day of the stockholders’ meeting held in the year following the financial reporting year, after taking into account the effects of ex-rights and ex-dividends.
(18) Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from those assumptions and estimates.
(19) Operating segments A. Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.
B. In accordance with R.O.C. SFAS No. 41, “Operating Segments”, segment information is disclosed in the consolidated financial statements rather than in the separate financial statements of the Company.
(20) Settlement date accounting If an entity recognizes financial assets using settlement date accounting, any change in the fair value of the asset to be received during the period between the trade date and the settlement dateis not recognized for assets carried at cost or amortized cost. For financial assets or financial liabilities classified as at fair value through profit or loss, the change in fair value is recognized in profit or loss. For available-for-sale financial assets, the change in fair value is recognized directly in equity.
3. CHANGES IN ACCOUNTING PRINCIPLES
(1) Notes and accounts receivable, other receivables Effective January 1, 2011, the Company prospectively adopted the amendments of R.O.C. SFAS No. 34, “Financial Instruments: Recognition and Measurement”. The Company recognizes impairment loss on notes receivable, accounts receivable and other receivables when there is an objective evidence of impairment. This accounting change has no significant effect on the Company’s financial statements for the year ended December 31, 2011.
88
~17~
4. DETAILS OF SIGNIFICANT ACCOUNTS(1) Cash and cash equivalents
(2) Financial assets at fair value through profit or loss
(a) The Company recognized net gain of $566 and $27 for the years ended December 31, 2012 and2011, respectively.
(b) For details of pledged assets, please refer to Note 6.
(3) Notes receivable
2012 2011
Cash:Cash on hand 2,674$ 2,327$Checking accounts 2,302,639 218,115Savings deposits 1,156,060 61,545
3,461,373 281,987
Cash equivalents:Repurchase of bonds 150,000 -
3,611,373$ 281,987$
December 31,
2012 2011Current items:
Financial assets held for tradingMutual funds -$ 76,000$
Valuation adjustments - 27-$ 76,027$
Non-Current items:Financial assets held for tradingMutual funds 76,000$ -$
Valuation adjustments 593 -76,593$ -$
December 31,
2012 2011Notes receivable 123,735$ 50,734$Less: Allowance for doubtful accounts 3,703)( 3,703)(
120,032$ 47,031$
December 31,
(2) Operating segments Effective January 1, 2011, the Company adopted the newly issued R.O.C. SFAS No. 41, “Operating Segments” to replace the original R.O.C. SFAS No. 20, “Segment Reporting”. In accordance with such standard, the Company restated the segment information for 2010 upon the first adoption of R.O.C. SFAS No. 41. This change in accounting principle had no significant effect on net income and earnings per share for the year ended December 31, 2011.
4. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
Prince Housing & Development Corp . Annual Report 2012
89
~18~
(4) Accounts receivable
(5) Inventories
2012 2011Accounts receivable 1,414,672$ 580,580$Less: Allowance for doubtful accounts 6,906)( 6,906)(
1,407,766$ 573,674$
December 31,
A.Construction in progress
Taipei Branch 2012 2011
Nei Hu Tanmei lot 2,658,711$ 2,450,902$
Canon Cooperation Project 1,256,523 1,253,548
Taoyuan Qing Shi Lot No. 462 673,574 665,610
Prince Fu (Taoyuan Qing Sun Lot No. 356-1 557,816 415,259
& 356-2)
Prince Central Park 292,397 70,791
Shi Lin Dist. Zhi San Sec. Lot No. 602, etc. 13,285 -
Taipei Shinyi - 9,295,035Prince College - 1,474,148
5,452,306 15,625,293
December 31,
Taichung BranchJing Yun Sian (Tu ku Lot No. 73-11) 583,128 512,985Hui Li Lot No. 195 551,524 550,340Tu ku Lot No. 8-2 433,272 -
Prince Dau (Tai Shun Lot No..175) 316,278 227,630Tai Ho Lot No. 29 198,793 191,581
Prince Fu (Feng Zun Lot No.1053 etc.) 191,621 -
The Cloud Century (Kao An Lot No.12-12) 110,252 67,224Yong Yong Prince - 253,877Pince Ju (Xin Xing Lot No. 34) - 164,925San Kuai Cuo Lot 1244 - 154,500Others 7 4,977
2,384,875 2,128,039
90
~19~
Tainan Branch 2012 2011Prince i-Cloud (Ren He Lot No. 1335) 506,297$ 345,325$Prince Flora Ⅲ(He Guan Lot No.38) 291,617 118,911Jin Yixing Heban 208,445 208,445Ching An Sec. Lot No. 373, etc. 183,861 -Shang Hua Shin Hua Road No. 897 113,838 60,475Shang Hua Shin Hua Road No. 923 91,449 61,162Bei An Lot No. 56-10 62,073 62,073Jin Hua Lot No. 136 23,700 -Ren Wu Dist. Xia Hai Lot 15,229 -Prince Flora II - 20,847Prince the Gathering(Ren He Lot No. 1278) - 475,062Others 3,524 3,524
1,500,033 1,355,824
December 31,
Kaohsiung BranchPrince Hua Yang (Chiao Tou Dist, Hou Bi
Tian Sec.)80,821 3,664
Prince Shi Bo (Zuo Yingqu Xin Fu Lot) - 282,848Others - 6,933
80,821 293,445Total construction in progress 9,418,035$ 19,402,601$
B.Land held for construction siteTaipei Branch
Zhong Li Pu Ren Lot 140,156$ 140,156$Others 6,276 6,274
146,432 146,430
Taichung Branch
Song Quan Lot No. 164 etc. 176,296 176,296
Wu Feng Lot No. 365~420 etc. 175,661 175,661
Song Chang Lot No. 557 etc. 19,912 19,912
Xi Zhou Lot No. 112-54 etc. 11,941 11,941
Feng Zun Lot No. 1053 etc. - 170,952
Others 24,134 24,135
407,944 578,897
Prince Housing & Development Corp . Annual Report 2012
91~20~
Tainan Branch 2012 2011Shan Zhong Lot No. 1468, 1475 & 1476 etc. 234,699$ 234,699$Xue Zhong Lot No. 679 etc. 50,798 50,798Yong Kang Ding An Lot No. 879 etc. 28,610 28,610Bei An Lot No. 54-3 etc. 15,344 15,344Bao An Lot No. 882 etc. 10,325 10,325Yu Dong Lot No. 995 etc. - 93,857Zeng Wen Lot No. 190-1-7 etc. - 25,314Others 20,615 20,616
360,391 479,563
December 31,
Kaohsiung BranchQian Jin Section Wen Dong Lot No. 16 14,964 14,964Da Hua Lot No. 434 & 436 13,923 13,923
28,887 28,887Total land held for construction site 943,654$ 1,233,777$
C.Buildings and land held for saleTaipei Branch
Taipei Shinyi 315,261$ -$Pu Lo Wang Shi 91,760 -Prince Dragon House III 44,859 47,284Prince Guo Boa 22,770 22,813Prince Da Din 12,657 12,466Prince Vacation - 20,842Shangrila - 17,593Prince 101 - 10,547Others 909 3,982
488,216 135,527
Taichung BranchPrince Hui 86,387 -New Generation - 128,512Sung Guan Prince - 63,405Others 16,977 20,234
103,364 212,151
92~21~
Tainan Branch 2012 2011Prince FloraⅡ 169,172$ -$Prince the Gathering 75,626 -Prince Dragon 46,672 55,858Tun Sha Building III 28,376 28,376Jun Chan LV 19,725 20,430Prince Golden Age 19,572 21,854Won Tung Global lan Tsai House 14,763 14,763Southern Taiwan Science Splendor - 151,112Prince Mei Xue - 116,682Prince Flora - 16,072Others 11,961 17,336
385,867 442,483
December 31,
Kaohsiung BranchPrince Bon 419,866 -Pince Shi Yun 227,119 -Prince Shi Bo 90,168 -Prince Dai Din 16,951 18,255Prince Culture - 22,304Others - 4,296
754,104 44,855Total buildings and land held for sale 1,731,551$ 835,016$
D.Prepayment for landTaipei Branch
Zhi San Sec. Lot No. 619 14,819$ -$Taichung Branch
Tu Ku Lot No. 2-8 etc. - 414,462Others 1,535 13,277
1,535 427,739Tainan Branch
Ren Wu Dist. Xia Hai Lot No. 978, etc. 384,078 383,265Others - 5,919
384,078 389,184Total prepayment for land 400,432$ 816,923$
Prince Housing & Development Corp . Annual Report 2012
93
~22~
(a) For details of pledged assets, please refer to Note 6.(b) For the years ended December 31, 2012 and 2011, the interest capitalized as cost of inventory
are as follows:
(c)As of December 31, 2012 and 2011, construction contracts that met the requirements to use thepercentage of completion method are listed as follows:2012: None.
(6) Available-for-sale financial assets
Certain available-for-sale financial assets were pledged as security for short-term and commercialpapers payable. For details of pledged assets, please refer to Note 6.
E.Prepayment for buildings and land2012 2011
Taisugar Kao An Lot 543,274$ 362,185$Taisugar Qiao Tou Hou Bi Tian Lot 158,854 31,874Taisugar He Guan Lot - 45,697Taisugar Feng Sheng Ming Ding Lot - 41,145Others 6 7,960
702,134$ 488,861$
December 31,
F.MerchandiseMerchandise 1,357$ 1,423$
Total inventories 13,197,163$ 22,778,601$Less:Allowance for decline in market
value and obsolescence 155,390)( 183,642)(13,041,773$ 22,594,959$
2012 2011Interest paid before capitalization 544,431$ 486,964$Interest capitalized 146,743$ 82,594$Annual interest rate used for capitalization 2.57%~3.32% 2.29%~2.81%
Contract sales(VAT excluded)
Estimated totalconstruction cost
Percentage ofcompletion
Expected date ofcompletion
Accumulatedconstruction profit
Taipei Shinyi 11,375,310$ 5,966,140$ 81% June, 2012 4,562,113$
Prince College 1,849,266 1,495,970 95% March, 2012 335,631
2011
Items 2012 2011Non-current items:
Listed (TSE and OTC) stocks 121,799$ 121,799$Adjustment of financial assets heldfor trading
1,367,551 850,0171,489,350$ 971,816$
December 31,
E. Prepayment for buildings and land
F. Merchandise
94
~23~
(7) Financial assets carried at cost
(a) The Company was committed to invest US$10,000,000 in President Energy Development Ltd. OnJune 17, 2010, July 8, 2011, and July 4, 2012, President Energy Development Ltd. reduced its capitaland returned share capital amounting to US$127,500, US$85,000 and US$85,000, respectively. Asof reporting date, the Company had paid US$1,275,000 for the shares investment.
(b) The investments were measured at cost since its fair value cannot be measured reliably.(c) Certain financial assets carried at cost had been impaired. Accordingly, the Company recognized
impairment loss of $0 and $5,321 for the years ended December 31, 2012 and 2011,respectively.
(d) Certain financial assets carried at cost were pledged as security for short-term and commercialpapers payable. For details of pledged assets, please refer to Note 6.
Items 2012 2011
Non-current items:Unlisted stocks 930,359$ 997,888$Emerging stocks 1,776 1,776
932,135$ 999,664$
December 31,
(a) The Company was committed to invest US$10,000,000 in President Energy Development Ltd. On June 17, 2010, July 8, 2011, and July 4, 2012, President Energy Development Ltd. reduced its capital and returned share capital amounting to US$127,500, US$85,000 and US$85,000, respectively. As of reporting date, the Company had paid US$1,275,000 for the shares investment.
(b) The investments were measured at cost since its fair value cannot be measured reliably.(c) Certain financial assets carried at cost had been impaired. Accordingly, the Company
recognized impairment loss of $0 and $5,321 for the years ended December 31, 2012 and 2011, respectively.
(d) Certain financial assets carried at cost were pledged as security for short-term and commercial papers payable. For details of pledged assets, please refer to Note 6.
(7) Financial assets carried at cost
Prince Housing & Development Corp . Annual Report 2012
95
~24~
(8) Long-term equity investments accounted for under the equity methodA. Details of long-term equity investments accounted for under the equity method are set forth
below:
(Note 1)Due to the investment structure adjustments in the Group, Ta-Chen Construction &Engineering Corp., Cheng-Shi Construction Co., Ltd. and Prince Utility Co., Ltd. wereall changed to be the consolidated entities of Cheng-Shi Investment Holdings Co., Ltd.
(Note 2)Due to the investment structure adjustments in the Group, Prince Real Estate Agent Co.,Ltd. as the surviving company merged with Prince Real Estate Appraisal Co., Ltd.,Prince Entertainment Co., Ltd. and Prince Property Management Co., Ltd., and wasrenamed Prince Property Management Consulting Co., Ltd. In addition, PrinceApartment Management Maintain Co., Ltd. and Prince Security Co., Ltd. were bothchanged to be the consolidated entities of Prince Property Management Consulting Co.,Ltd.
Carrying Percentage of Carrying Percentage of
amount ownership amount ownership
Cheng-shi Investment Holdings Co., 539,263$ 100.00% -$ -
Ltd. (Note 1)
Time Square International Hotel 438,189 100.00% 292,974 100.00%
Prince Housing Investment Co., Ltd. 312,282 100.00% 308,137 100.00%
Dong-Feng Enterprises Co., Ltd. 231,522 100.00% 446,010 100.00%
Prince Property Management 223,903 100.00% 2,202 100.00%
Consulting Co., Ltd.( formerly Prince
Real Estate Agent Co., Ltd.) (Note 2)
Jin Yi Xing Plywood Co., Ltd. 661,381 99.65% 653,212 99.65%
The Splendor Hotel Taichung 383,078 50.00% 391,564 50.00%
Uni-President Development Corp. 980,708 30.00% 911,199 30.00%
Geng-Ding Co., Ltd. 317,735 30.00% 305,165 100.00%
Ming-Da Enterprise Co., Ltd. 132,453 20.00% 134,018 20.00%
Ta-Chen Construction & - - 330,466 100.00%
Engineering Corp.(Note 1)
Prince Apartment Management - - 85,404 100.00%
Maintain Co., Ltd.(Note 2)
Others (individually less than 2%)(Note 1, 2) 110,665 193,141
4,331,179$ 4,053,492$
December 31,
2012 2011
(8) Long-term equity investments accounted for under the equity method A. Details of long-term equity investments accounted for under the equity method are set forth
below:
(Note 1) Due to the investment structure adjustments in the Group, Ta-Chen Construction & Engineering Corp., Cheng-Shi Construction Co., Ltd. and Prince Utility Co., Ltd. were all changed to be the consolidated entities of Cheng-Shi Investment Holdings Co., Ltd.
(Note 2) Due to the investment structure adjustments in the Group, Prince Real Estate Agent Co., Ltd. as the surviving company merged with Prince Real Estate Appraisal Co., Ltd., Prince Entertainment Co., Ltd. and Prince Property Management Co., Ltd., and was renamed Prince Property Management Consulting Co., Ltd. In addition, Prince Apartment Management Maintain Co., Ltd. and Prince Security Co., Ltd. were both changed to be the consolidated entities of Prince Property Management Consulting Co., Ltd.
96
B. Investment income accounted for under the equity method for the years ended December 31, 2012 and 2011 was $448,949 and $344,930, respectively.
C. The investment income (loss) of certain investees for the years ended December 31, 2012 and 2011, accounted for under the equity method, was based on their financial statements for the corresponding periods, which were audited by other auditors. The investment income recognized for these investees for the years ended December 31, 2012 and 2011 was $137,386 and $383,302, respectively. As of December 31, 2012 and 2011, long-term equity investments in these investees were $1,151,315 and $1,290,718, respectively. The investees whose financial statements were audited by other auditors for the years ended December 31, 2012 and 2011 are as follows: Prince Property Management Consulting Co., Ltd. (Original: Prince Real estate Agent Co., Ltd.,), Geng-Ding Co., Ltd., Prince Apartment Management Maintain Co., Ltd., Prince Housing Investment Co., Ltd., BioSun Technology Co., Ltd., Prince Security Co., Ltd., Dong-Feng Enterprises Co., Ltd., Cheng-Shi Construction Co., Ltd., Early Success Investments Limited and Prince Assets Management LLC.
D. Details of endorsements and guarantees provided to Ta-Chen Construction & Engineering Corp., The Splendor Hotel Taichung and Time Square International Hotel Corp. are described in Note 7.
E. Certain long-term equity investments were pledged as security for short-term and commercial papers payable. For details of pledged assets, please refer to Note 6.
(9) Real estate investments A. Details of real estate investments are set forth below:
~25~
B. Investment income accounted for under the equity method for the years ended December 31,2012 and 2011 was $448,949 and $344,930, respectively.
C. The investment income (loss) of certain investees for the years ended December 31, 2012 and2011, accounted for under the equity method, was based on their financial statements for thecorresponding periods, which were audited by other auditors. The investment income recognizedfor these investees for the years ended December 31, 2012 and 2011 was $137,386 and $383,302,respectively. As of December 31, 2012 and 2011, long-term equity investments in these investeeswere $1,151,315 and $1,290,718, respectively.The investees whose financial statements were audited by other auditors for the years endedDecember 31, 2012 and 2011 are as follows: Prince Property Management Consulting Co., Ltd.(Original: Prince Real estate Agent Co., Ltd.,), Geng-Ding Co., Ltd., Prince ApartmentManagement Maintain Co., Ltd., Prince Housing Investment Co., Ltd., BioSun Technology Co.,Ltd., Prince Security Co., Ltd., Dong-Feng Enterprises Co., Ltd., Cheng-Shi Construction Co.,Ltd., Early Success Investments Limited and Prince Assets Management LLC.
D. Details of endorsements and guarantees provided to Ta-Chen Construction & Engineering Corp.,The Splendor Hotel Taichung and Time Square International Hotel Corp. are described in Note 7.
E. Certain long-term equity investments were pledged as security for short-term and commercialpapers payable. For details of pledged assets, please refer to Note 6.
(9) Real estate investmentsA. Details of real estate investments are set forth below:
B. For details of pledged assets, please refer to Note 6.
2012 2011Beitou District, Zhenxing Section 3,
No. 122, etc., Taipei City162,426$ 162,426$
Xiaobei Section No. 966, Tainan City 68,329 68,329Wenlin Secion 4, Taipei City 38,552 38,552Others (individually less than 3%) 1,811 1,811
271,118$ 271,118$
December 31,
B. For details of pledged assets, please refer to Note 6.
Prince Housing & Development Corp . Annual Report 2012
97
(10) Property, plant and equipment
~26~
(10) Property, plant and equipment
For details of pledged assets, please refer to Note 6.(11) Short-term loans
For details of pledged assets, please refer to Note 6.
Accumulated NetInitial cost depreciation book value
Land 122,657$ -$ 122,657$Buildings 401,309 104,006)( 297,303Computer equipment 49,471 29,505)( 19,966Transportation equipment 6,367 4,530)( 1,837Office equipment 370,188 151,699)( 218,489Property held for lease-Land 3,181,239 - 3,181,239Property held for lease-Buildings 6,670,114 861,550)( 5,808,564Leasehold improvements 47,000 37,600)( 9,400Other equipment 1,970 628)( 1,342
10,850,315$ 1,189,518)($ 9,660,797$
December 31, 2012
Accumulated NetInitial cost depreciation book value
Land 122,657$ -$ 122,657$Buildings 401,309 96,513)( 304,796Computer equipment 39,324 26,114)( 13,210Transportation equipment 14,807 9,901)( 4,906Office equipment 369,680 117,573)( 252,107Property held for lease-Land 3,243,202 - 3,243,202Property held for lease-Buildings 6,702,320 720,222)( 5,982,098Leasehold improvements 47,000 28,200)( 18,800Other equipment 1,945 353)( 1,592
10,942,244$ 998,876)($ 9,943,368$
December 31, 2011
2012 2011Unsecured loans 2,580,000$ 880,000$Secured loans 1,240,000 4,487,400
3,820,000$ 5,367,400$Range of interest rate 2.07%~2.69% 2.00%~2.75%
December 31,
98
(12) Notes and bills payable
~27~
(12) Notes and bills payable
(a)The above commercial papers were issued by banks and bills financial institutions.
(b)For details of pledged assets, please refer to Note 6.(13) Receipts in advance
(14) Bonds payable
Note:Please refer to 4(14)A(g).A. The Company issued secured ordinary bonds payable in July 2012. The significant terms of the
bonds are as follows:(a)Total issue amount: $2,000,000(b)Issue price: At pay value of $1,000 per bond.(c)Coupon rate: 1.33%(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year
starting July 2012 based on the coupon rate.(e)Repayment term: The bonds are repaid upon the maturity of the bonds.(f)Period: 5 years, from July 12, 2012 to July 12, 2017.(g)The way of security: The Bonds are secured by Bank of Taiwan.(h)Guarantee Bank: The Bonds are guaranteed by Mega International Commercial Bank.
2012 2011
Commercial papers 1,655,000$ 1,383,000$Less: Unamortized discount 1,773)( 2,331)(
1,653,227$ 1,380,669$Range of interest rate 0.85%~1.80% 0.90%~2.08%
December 31,
2012 2011Advance real estate receipts 1,462,659$ 4,736,091$Advance rent 148,012 82,263Other advance receipts 663 657
1,611,334$ 4,819,011$
December 31,
Collateral or2012 2011 security
2012 lst secured ordinarybonds payable 2,000,000$ -$ Note
December 31,
(13) Receipts in advance
(14) Bonds payable
A. The Company issued secured ordinary bonds payable in July 2012. The significant terms of the bonds are as follows: (a) Total issue amount: $2,000,000(b) Issue price: At pay value of $1,000 per bond.(c) Coupon rate: 1.33%(d) Terms of interest repayment: The bonds interest is calculated on simple rate every year
starting July 2012 based on the coupon rate.(e) Repayment term: The bonds are repaid upon the maturity of the bonds.(f) Period: 5 years, from July 12, 2012 to July 12, 2017.(g) The way of security: The Bonds are secured by Bank of Taiwan.(h) Guarantee Bank: The Bonds are guaranteed by Mega International Commercial Bank
Prince Housing & Development Corp . Annual Report 2012
99
~28~
(15) Long-term loans
For detail of pledged assets, please refer to Note 6.
(16) Pension plansA. The Company has a non-contributory and funded defined benefit pension plan in accordance
with the Labor Standards Law, covering all regular employees. Under the defined benefitpension plan, two units are accrued for each year of service for the first 15 years and one unitfor each additional year thereafter, subject to a maximum of 45 units. Pension benefits arebased on the number of units accrued and the average monthly salaries and wages of the last 6months prior to retirement. The Company contributes monthly an amount equal to 8% of theemployees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan,the trustee, under the name of the independent retirement fund committee.
B. The following sets forth the pension information based on the actuarial report:
(a)Actuarial assumptions
2012 2011Secured bank loans 10,043,153$ 13,215,516$Unsecured loans 175,000 300,000Long-term commercial papers 400,000 400,000
10,618,153 13,915,516Less: Unamortized discount 1,687)( 562)(
Current portion 3,094,284)( 3,812,079)(7,522,182$ 10,102,875$
Range of maturity dates 2013.02.06~2027.11.02 2013.02.13~2027.11.02
Range of interest rates 0.86%~3.07% 0.86%~3.01%
December 31,
2012 2011Discount rate 1.75% 1.90%Rate of compensation increase 1.50% 1.50%Expected rate of return on plan assets 1.75% 1.90%
~28~
(15) Long-term loans
For detail of pledged assets, please refer to Note 6.
(16) Pension plansA. The Company has a non-contributory and funded defined benefit pension plan in accordance
with the Labor Standards Law, covering all regular employees. Under the defined benefitpension plan, two units are accrued for each year of service for the first 15 years and one unitfor each additional year thereafter, subject to a maximum of 45 units. Pension benefits arebased on the number of units accrued and the average monthly salaries and wages of the last 6months prior to retirement. The Company contributes monthly an amount equal to 8% of theemployees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan,the trustee, under the name of the independent retirement fund committee.
B. The following sets forth the pension information based on the actuarial report:
(a)Actuarial assumptions
2012 2011Secured bank loans 10,043,153$ 13,215,516$Unsecured loans 175,000 300,000Long-term commercial papers 400,000 400,000
10,618,153 13,915,516Less: Unamortized discount 1,687)( 562)(
Current portion 3,094,284)( 3,812,079)(7,522,182$ 10,102,875$
Range of maturity dates 2013.02.06~2027.11.02 2013.02.13~2027.11.02
Range of interest rates 0.86%~3.07% 0.86%~3.01%
December 31,
2012 2011Discount rate 1.75% 1.90%Rate of compensation increase 1.50% 1.50%Expected rate of return on plan assets 1.75% 1.90%
(15) Long-term loans
(16) Pension plansA. The Company has a non-contributory and funded defined benefit pension plan in accordance with
the Labor Standards Law, covering all regular employees. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 8% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.
B. The following sets forth the pension information based on the actuarial report:(a) Actuarial assumptions
100
~29~
(b)The funded status of the plans is as follows:
(c)Net pension cost comprises the following:
Effective July 1, 2005, the Company has established a funded defined contribution pension plan(the “New Plan”) under the Labor Pension Act. Employees have the option to be covered under theNew Plan. Under the New Plan, the Company contributes monthly an amount based on 6% of theemployees’ monthly salaries and wages to the employees’ individual pension accounts at theBureau of Labor Insurance. The benefits accrued are portable upon termination of employment.The pension costs under the defined contribution pension plan for the years ended December 31,2012 and 2011 were $7,458 and $6,414, respectively.
(17) Common stockA. The stockholders at their annual stockholders’ meeting on June 17, 2011 adopted a resolution to
increase capital for 89,660 thousand shares through capitalization of unappropriated retainedearnings of $896,605. Pursuant to the approval by the Financial Supervisory Commission,Securities and Futures Bureau, No. 1000035447, the capital increase was effective on July 29,2011. After the capital increase, the paid-in capital was $10,858,877.
B. The stockholders at their annual stockholders’ meeting on June 20, 2012 adopted a resolution toincrease capital for 108,589 thousand shares through capitalization of unappropriated retained
December 31, 2012 December 31, 2011Benefit obligation:
Vested benefit obligation 12,870)($ 27,712)($Non-vested benefit obligation 60,058)( 53,728)(Accumulated benefit obligation 72,928)( 81,440)(Additional benefit based on future salaries 13,996)( 14,020)(Projected benefit obligation 86,924)( 95,460)(
Fair value of plan assets 5,421 23,436Funded status 81,503)( 72,024)(Unrecognized loss on plan assets 49,149 43,170Additional minimum liability recognized 35,152)( 29,150)(Accrued pension liabilities 67,506)($ 58,004)($Vested benefit 14,419$ 30,468$
2012 2011Service cost 630$ 688$Interest cost 1,814 1,896Expected return on plan assets 445)( 455)(assets 2,586 2,687
Net pension cost 4,585$ 4,816$
For the years ended December 31,
(b) The funded status of the plans is as follows:
(c) Net pension cost comprises the following:
Effective July 1, 2005, the Company has established a funded defined contribution pension plan (the “New Plan”) under the Labor Pension Act. Employees have the option to be covered under the New Plan. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are portable upon termination of employment. The pension costs under the defined contribution pension plan for the years ended December 31, 2012 and 2011 were $7,458 and $6,414, respectively.
(17) Common stockA. The stockholders at their annual stockholders’ meeting on June 17, 2011 adopted a resolution
to increase capital for 89,660 thousand shares through capitalization of unappropriated retained earnings of $896,605. Pursuant to the approval by the Financial Supervisory Commission, Securities and Futures Bureau, No. 1000035447, the capital increase was effective on July 29, 2011. After the capital increase, the paid-in capital was $10,858,877.B. The following sets forth the pension information based on the actuarial report:
B. The stockholders at their annual stockholders’ meeting on June 20, 2012 adopted a resolution to increase capital for 108,589 thousand shares through capitalization of unappropriated retained earnings of $1,085,888. Pursuant to the approval by the Financial Supervisory Commission, Securities and Futures Bureau, No. 1010034424, the capital increase was effective on August 6,
Prince Housing & Development Corp . Annual Report 2012
101
2012. After the capital increase, the paid-in capital was $ 11,944,765.
(18) Capital reservePursuant to the R.O.C. Company Law, capital reserve arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital reserve to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital reserve should not be used to cover accumulated deficit unless the legal reserve is insufficient.
(19) Retained earningsA. In accordance with the Company’s Articles of Incorporation, the Company will take into
consideration its future business plans and capital expenditures in determining the amounts of earnings to be retained and to be distributed. In accordance with the Company Law, 10% of the current year’s earnings, after payment of all taxes and after offsetting accumulated deficit, shall be set aside as legal reserve until the balance of legal reserve is equal to that of issued share capital. Afterwards, an amount shall be appropriated as special reserve in accordance with applicable legal or regulatory requirements, and then distribution should be in the following order:(a) 3% as remuneration to directors and supervisors;(b) At least 2% as bonuses to employees; and(c) Appropriation of the remainder plus prior years’ accumulated unappropriated retained earnings
shall be proposed by the Board of Directors, taking into consideration the cash requirements for future business and investments and other factors. In principle, cash and stock dividends shall account for 50% and 50%, respectively, of the total dividends distributed. While, in case the Company has the need of reserving cash for a significant capital expenditure plan, or intends to adopt the high cash dividends policy instead to avoid capital inflation, the Board of Directors may adjust the cash and stock dividends payout ratios; however, cash and stock dividends shall account for at least 30% and 30%, respectively, of the total dividends distributed, and the final adjustments shall be approved by the stockholders. The parties entitled to the employees’ stock bonus may include the employees of the Company’s affiliates who meet certain criteria.
B. According to the R.O.C. Company Law, except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
C. As of December 31, 2012 and 2011 , the balance of unappropriated retained earnings is as follows:
102
~31~
shareholders in proportion to their share ownership is permitted, provided that the balance of thereserve exceeds 25% of the Company’s paid-in capital.
C.As of December 31, 2012 and 2011 , the balance of unappropriated retained earnings is asfollows:
D.(a)The appropriations of 2011 and 2010 earnings had been resolved at the stockholders’meetings on June 20, 2012 and June 17, 2011, respectively. Details are summarized below:
(b)The appropriations of 2012 earnings had been proposed by the Board of Directors on March15, 2013. Details are summarized below:
As of March 15, 2013, the abovementioned 2012 earnings appropriation had not beenapproved by the stockholders.
2012 2011
Unappropriated retained earnings in and after 1998 2,364,465$ 2,448,137$
December 31,
Dividends per Dividends per
share share
Amount (in dollars) Amount (in dollars)
Legal reserve 231,413$ -$ 213,082$ -$Stock dividends 1,085,888 1.00 896,605 0.90Cash dividends 542,944 0.50 896,605 0.90Employees' cash bonus 41,654 - 38,355 -Directors' and supervisors'
remuneration 62,482 - 57,532 -
1,964,381$ 1.50$ 2,102,179$ 1.80$
2011 2010
Dividends pershare
Amount (in dollars)Legal reserve 178,593$ -$Stock dividends 1,194,476 1.00Cash dividends 597,238 0.50Employees' cash bonus 321,147 -
48,220 -2,339,674$ 1.50$
2012
Directors' and supervisors' remuneration
Prince Housing & Development Corp . Annual Report 2012
103
E. Employees’ bonus for 2012 and 2011 are estimated and accrued at $31,640 and $41,654, respectively, and directors’ and supervisors’ remuneration for 2012 and 2011 are estimated and accrued at $47,460 and $62,482, respectively. The basis of estimates is based on a certain percentage of net income taking into account the legal reserve and other factors prescribed by the Company’s Articles of Incorporation (2% and 3% of after-tax earnings for 2011 and 2010, respectively). The estimated amounts were recognized as operating expenses for the years ended December 31, 2012 and 2011. If the estimated amounts differ from the amounts approved by the stockholders, the difference is recognized as income or expense in the following year.
F. The actual distribution of 2011 and 2010 earnings were as stated in the previous paragraph. The difference of $328 between the amounts recognized in 2010 (cash bonus to employees of $38,224 and remunerations to directors and supervisors of $57,335) and the amount resolved by the stockholders was adjusted in the statement of income for 2011. There was no difference for 2011.
(20) Treasury stockA. Treasury stocks bought back by the Company:
(a) For the years ended December 31, 2012 and 2011: None.(b) Pursuant to the R.O.C. Securities and Exchange Law, the number of shares bought back as
treasury stock should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital reserve. Treasury stocks to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.
(c) Pursuant to the R.O.C. Securities and Exchange Law, treasury stock should not be pledged as collateral and is not entitled to dividends before it is reissued to the employees.
B. Stocks of the Company held by its subsidiaries:(a) Effective January 1, 2002, the stocks of the Company held by its subsidiaries are regarded
as treasury stocks. Those treasury stocks should be eliminated from the calculation of the Company’s weighted-average outstanding shares of EPS.
(b) As of December 31, 2012 and 2011, the total number of the Company’s shares held by its subsidiaries was 35,014 thousand shares and 31,831 thousand shares with an average book value of $1.73 and $1.90 (in dollars) per share and market value of $20.70 and $16.20 (in dollars) per share, respectively.
104
~33~
(21) Deferred income tax and income tax expenseA. Income tax expense and income tax payable are reconciled as follows:
The difference between financial income and taxable income mainly lies in the tax-exemptincome of land.
B. Details of loss carryforwards and investment tax credits resulting in deferred income tax assetsare as follows:
C. As of December 31, 2012, the Company's investment tax credits consisted of the following:
D.As of December 31, 2012 and 2011, the imputation tax credit account balance amounted to$43,935 and $1,777, respectively. The Company distributed unappropriated earnings in 2011and 2010 as dividends in accordance with the resolution adopted at the stockholders’ meetingon June 20, 2012 and June 17, 2011, respectively. The 2012 and 2011 creditable ratio were
2012 2011Income tax at statutory tax rate 312,115$ 394,461$Tax effect of permanent and temporary differences 198,705)( 373,147)(Tax effect of investment tax credits 41,523)( 6,227)(Tax effect of loss carryforwards 75,753)( 21,314)(Under provision of prior year's income tax 8,520 -10% tax on unappropriated earnings 45,389 12,453
Income tax expense 50,043 6,226Under provision of prior year's income tax 8,520)( -Prepaid income tax 3,748)( 3,225)(Income tax payable 37,775$ 3,001$
For the years ended December 31,
Non-current: Amount Tax effect Amount Tax effectLoss carryforwards -$ -$ 451,709$ 76,790$Investment tax credits 92,625 14,148
92,625 90,938Less: Valuation allowance 92,625)( 90,938)(
-$ -$
December 31, 2012 December 31, 2011
Qualifying Total tax Unused tax Final year taxRegulation item credits credits credits are due
Act for Promotion of PrivateParticipation in InfrastructureProjects Investment 120,000$ 92,625$ 2016
The difference between financial income and taxable income mainly lies in the tax-exemptincome of land.
B. Details of loss carryforwards and investment tax credits resulting in deferred income tax assets are as follows:
C. As of December 31, 2012, the Company's investment tax credits consisted of the following:
(21) Deferred income tax and income tax expenseA. Income tax expense and income tax payable are reconciled as follows:
D. As of December 31, 2012 and 2011, the imputation tax credit account balance amounted to $43,935 and $1,777, respectively. The Company distributed unappropriated earnings in 2011 and 2010 as dividends in accordance with the resolution adopted at the stockholders’ meeting on June 20, 2012 and June 17, 2011, respectively. The 2012 and 2011 creditable ratio were 2.73% and 0.16%, respectively. The 2012 estimated creditable ratio was 1.86%. The amount of deductible tax distributable by the Company to its shareholders shall be limited to an amount not exceeding the
Prince Housing & Development Corp . Annual Report 2012
105
~34~
2.73% and 0.16%, respectively. The 2012 estimated creditable ratio was 1.86%. The amount ofdeductible tax distributable by the Company to its shareholders shall be limited to an amountnot exceeding the amount of the imputation tax credit account balance on the date ofdistribution of the dividends. Accordingly, the actual creditable ratio for the distribution of2012 undistributed earnings will be based on the imputation tax credit account balance up tothe date of distribution of the dividends.
E.As of December 31, 2012, the Company’s income tax returns through 2011 have been assessed bythe Tax Authority and there were no disputes existing between the Company and the Tax Authority.
(22) Earnings per share
Weighted average
number of shares
outstanding
during the year
Before tax After tax (in thousands) Before tax After tax
Basic earnings per share
Net income 1,835,973$ 1,785,930$ 1,159,462 1.58$ 1.54$
Dilutive effect of common
stock equivalents:
Employees' bonus - - 1,723
Diluted earnings per share
Net income plus the dilutive
effect of common stock
equivalents 1,835,973$ 1,785,930$ 1,161,185 1.58$ 1.54$
2012
Earnings per share
Amount (in dollasrs)
~35~
(a) The above weighted-average outstanding common shares have been adjusted retroactively inproportion to retained earnings as of December 31, 2010.
(b) Effective January 1, 2008, as employees’ bonus could be distributed in the form of stock, thediluted EPS computation shall include those estimated shares that would increase fromemployees’ stock bonus issuance in the calculation of the weighted-average number ofcommon shares outstanding during the reporting year, taking into account the dilutive effectsof stock bonus on potential common shares; whereas, basic EPS shall be calculated based onthe weighted-average number of common shares outstanding during the reporting year thatinclude the shares of employees’ stock bonus for the appropriation of prior year earnings,which have already been resolved at the stockholders’ meeting held in the reporting year.Since capitalization of employees’ bonus no longer belongs to distribution of stock dividends(or retained earnings and capital reserve capitalized), the calculation of basic EPS and dilutedEPS for all periods presented shall not be adjusted retroactively. However, the accountingtreatment for the appropriation of employees’ bonus for 2007 earnings resolved at thestockholders’ meeting held in 2008 is still in accordance with the regulations on capitalizationof employees’ bonus under paragraphs 19 and 39 of R.O.C. SFAS No. 24, “Earnings perShare”.
Weighted average
number of shares
outstanding
during the year
Before tax After tax (in thousands) Before tax After tax
Basic earnings per share
Net income 2,320,357$ 2,314,131$ 1,159,462 2.00$ 2.00$
Dilutive effect of common
stock equivalents:
Employees' bonus - - 3,211
Diluted earnings per share
Net income plus the dilutive
effect of common stock
equivalents 2,320,357$ 2,314,131$ 1,162,673 2.00$ 1.99$
2011
Earnings per share
Amount (in dollasrs)
amount of the imputation tax credit account balance on the date of distribution of the dividends. Accordingly, the actual creditable ratio for the distribution of 2012 undistributed earnings will be based on the imputation tax credit account balance up to the date of distribution of the dividends.
E. As of December 31, 2012, the Company’s income tax returns through 2011 have been assessed by the TaxAuthority and there were no disputes existing between the Company and the TaxAuthority.
(22) Earnings per share
106
(a) The above weighted-average outstanding common shares have been adjusted retroactively in proportion to retained earnings as of December 31, 2010.
(b) Effective January 1, 2008, as employees’ bonus could be distributed in the form of stock, the diluted EPS computation shall include those estimated shares that would increase from employees’ stock bonus issuance in the calculation of the weighted-average number of common shares outstanding during the reporting year, taking into account the dilutive effects of stock bonus on potential common shares; whereas, basic EPS shall be calculated based on the weighted-average number of common shares outstanding during the reporting year that include the shares of employees’ stock bonus for the appropriation of prior year earnings, which have already been resolved at the stockholders’ meeting held in the reporting year. Since capitalization of employees’ bonus no longer belongs to distribution of stock dividends (or retained earnings and capital reserve capitalized), the calculation of basic EPS and diluted EPS for all periods presented shall not be adjusted retroactively. However, the accounting treatment for the appropriation of employees’ bonus for 2007 earnings resolved at the stockholders’ meeting held in 2008 is still in accordance with the regulations on capitalization of employees’ bonus under paragraphs 19 and 39 of R.O.C. SFAS No. 24, “Earnings per Share”.
(23) Personnel expenses and depreciationPersonnel expenses and depreciation are summarized as follows:
~36~
(23) Personnel expenses and depreciation
Personnel expenses and depreciation are summarized as follows:
Operating costs Operating expenses Total
Personnel expenses:
Salaries 18,427$ 396,923$ 415,350$
Insurance - 13,589 13,589
Pension - 12,043 12,043
Others - 26,340 26,340
18,427$ 448,895$ 467,322$
Depreciation 145,090$ 57,140$ 202,230$
For the year ended December 31, 2012
Operating costs Operating expenses Total
Personnel expenses:
Salaries 12,733$ 411,326$ 424,059$
Insurance - 12,154 12,154
Pension - 11,230 11,230
Others - 14,693 14,693
12,733$ 449,403$ 462,136$
Depreciation 179,483$ 54,967$ 234,450$
For the year ended December 31, 2011
Prince Housing & Development Corp . Annual Report 2012
107
5. RELATED PARTY TRANSACTIONS
A.Names of related parties and their relationship with the Company
~37~
5. RELATED PARTY TRANSACTIONSA. Names of related parties and their relationship with the Company
For other related parties over which the Company exercises significant influence but with which theCompany had no material transaction, please refer to Note 11 for related information.
B. Significant transactions and balances with related partiesa. Sales
(a)On July 8, 2009, the Company signed a house sale contract with the spouse of its chairman, Ms.Chung, Wu-Chuan, in the amount of $270,060. The Company recognized sale revenue for thiscontract on a percentage-of-completion basis, amounting to $50,530 and $87,760, for the yearsended December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011,accumulated sales revenue recognized for this contract on a percentage-of-completion basisamounted to $265,944 and $215,414, respectively. The sale terms of this contract are notsignificantly different from other sale contracts of the same building case.
Names of related parties Relationship with the CompanyTa-Chen Construcion & Engineering Corp. Subsidiary accounted for under the equity method
(Ta-Chen Construction)Prince Utility Co., Ltd. (Prince Utility) Subsidiary accounted for under the equity methodDong-Feng Enterprises Co. Ltd. Subsidiary accounted for under the equity method
(Dong-Feng Enterprises)Cheng-Shi Construction Co., Ltd. Subsidiary accounted for under the equity method
(Cheng-Shi Construction)Prince Security Co., Ltd. Subsidiary accounted for under the equity method
(Prince Security)Prince Apartment Management Maintain Subsidiary accounted for under the equity method
Co., Ltd. (Prince Apartment)The Splendor Hotel Taichung Subsidiary accounted for under the equity method
(The Splendor Hotel)Jin-Yi-Xing Plywood Co., Ltd. Subsidiary accounted for under the equity method
(Jin-Yi-Xing plywood)BioSun Technology Co., Ltd. Subsidiary accounted for under the equity method
(BioSun Technology)Chuang, Nan-Tien The Company’s chairmanHsieh, Ming-Fan The Company’s general managerChung, Wu-Chuan The Chairman’s spouse
For other related parties over which the Company exercises significant influence but with which the Company had no material transaction, please refer to Note 11 for related information.
B. Significant transactions and balances with related parties a. Sales
(a) On July 8, 2009, the Company signed a house sale contract with the spouse of its chairman, Ms. Chung, Wu-Chuan, in the amount of $270,060. The Company recognized sale revenue for this contract on a percentage-of-completion basis, amounting to $50,530 and $87,760, for the years ended December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011, accumulated sales revenue recognized for this contract on a percentage-of-completion basis amounted to $265,944 and $215,414, respectively. The sale terms of this contract are not significantly different from other sale contracts of the same building case.
108
~38~
b. Purchases(a) Details of the Company’s subcontracting to related parties and its purchases from related
parties for the years ended December 31, 2012 and 2011 are as follows:
The Company subcontracted building construction and utilities engineering to related parties,Ta-Chen Construction Company, Prince Utility Company and Chen-Shi ConstructionCompany. Under those subcontracts, acceptance would be done according to the progress ofthe construction and engineering; payments would be made based on agreed-upon terms of thetwo parties. Purchases from related parties, Prince Security Company, BioSun TechnologyCompany and Prince Apartment, are based on negotiated terms because the related purchasetransactions are unique and not available to third parties.
(b)As of December 31, 2012 and 2011, unsettled construction contracts that were signed by theCompany and Chen-Shi Construction Company totaled $1,357,473 and $645,487, respectively;payments already made for those contracts amounted to $181,392 and $119,469, respectively; andfuture payments required under those contracts amounted to $1,176,081 and $526,018,respectively.
(c)As of December 31, 2012 and 2011, unsettled construction contracts that were signed by theCompany and Ta-Chen Construction Company totaled $427,810 and $400,000, respectively;payments already made for those contracts amounted to $1,000 and $213,460, respectively;and future payments required under those contracts amounted to $426,810 and $186,540,respectively.
(d) As of December 31, 2012 and 2011, unsettled construction contracts that were signed by theCompany and Prince Utility Company totaled $372,413 and $304,060, respectively; paymentsalready made for those contracts amounted to $9,641 and $144,682, respectively; and futurepayments required under those contracts amounted to $362,772 and $159,378, respectively.
Amount % Amount %
Chen-Shi Construction 699,743$ 12 367,848$ 6Ta-Chen Construction 365,254 6 158,960 3Prince Utility 267,329 4 224,166 4Prince Security 36,094 1 22,391 -BioSun Technology 14,328 - 13,296 -Prince Apartment 13,729 - 9,511 -Others - - 3,163 -
1,396,477$ 23 799,335$ 13
For the years ended December 31,2012 2011
The Company subcontracted building construction and utilities engineering to related parties, Ta-Chen Construction Company, Prince Utility Company and Chen-Shi Construction Company. Under those subcontracts, acceptance would be done according to the progress of the construction and engineering; payments would be made based on agreed-upon terms of the two parties. Purchases from related parties, Prince Security Company, BioSun Technology Company and Prince Apartment, are based on negotiated terms because the related purchase transactions are unique and not available to third parties.
(b) As of December 31, 2012 and 2011, unsettled construction contracts that were signed by the Company and Chen-Shi Construction Company totaled $1,357,473 and $645,487, respectively; payments already made for those contracts amounted to $181,392 and $119,469, respectively; and future payments required under those contracts amounted to $1,176,081 and $526,018, respectively.
(c) As of December 31, 2012 and 2011, unsettled construction contracts that were signed by the Company and Ta-Chen Construction Company totaled $427,810 and $400,000, respectively; payments already made for those contracts amounted to $1,000 and $213,460, respectively;
and future payments required under those contracts amounted to $426,810 and $186,540, respectively.
(d) As of December 31, 2012 and 2011, unsettled construction contracts that were signed by the Company and Prince Utility Company totaled $372,413 and $304,060, respectively; payments already made for those contracts amounted to $9,641 and $144,682, respectively; and future payments required under those contracts amounted to $362,772 and $159,378, respectively.
b. Purchases(a) Details of the Company’s subcontracting to related parties and its purchases from related
parties for the years ended December 31, 2012 and 2011 are as follows:
Prince Housing & Development Corp . Annual Report 2012
109
~39~
C. Accounts receivable
D. Prepayment for land
E. Other assets(a)On June 20, 2006, the Company and CHINA METAL PRODUCTS CO., LTD. (“A party”)
jointly signed a creditor’s rights transfer contract with AMIDA TRUSTLINK ASSETSMANAGEMENT CO., LTD. (“B party”). Under the contract, the Company and A partyshould pay $2,100,000 each (totaling $4,200,000) to jointly acquire whole creditor’s rights ofmortgages, security interests and other dependent claims (collectively referred herein as thecreditor’s rights) on the Splendor Hotel Taichung Building, and each bears 50% rights andobligations of this acquisition; when all creditor’s rights of this object turn into property rights,the Company and A party should pay B party totaling $1,000,000 as the cost and reward of Bparty for it is entrusted with the task to help turn the creditor’s rights as stated above intoproperty rights, but any excess cost over $1,000,000 if incurred on this task shall be borne byB party on its own; the Company should pay B party $300,000 before June 30, 2006, and theCompany and A party should jointly issue a promissory note of $1,800,000 to B party on thesigning date; payment should be done before July 15, 2006. The title to the creditor’s rights asstated above had been transferred to the Company and A party on August 2, 2006. OnDecember 29, 2006, the Company and A party signed an additional contract following theoriginal contract with B party to raise total acquisition price of the creditor’s rights to$4,750,000 (the Company and A party bear 50% of the price each). As of December 31, 2012,the Company had paid its price.
(b)The Company and CHINA METAL PRODUCTS CO., LTD. jointly established The SplendorHotel Chunggang (“A party”) by investing $200,000 each. On November 1, 2006, A partysigned a certain assets transfer contract with The Splendor Hotel Chunggang (“B party”).Under the contract, A party should pay B party $352,310 for related employees’ service years,goods purchases and taxes, and A party should pay the shortfall, if any, up to the maximum of$100,000, and B party does not need to return the remainder, if any, to A party. The abovepayments required of A party were made from the share capital of its initial establishment.
Amount % Amount %Chung, Wu-Chuan 185,560$ 12 -$ -
December 31,2012 2011
2012 2011Jin-Yi-Xing Plywood 238,163$ 237,350$
December 31,
C. Accounts receivable
E. Other assets(a) On June 20, 2006, the Company and CHINA METAL PRODUCTS CO., LTD. (“A party”)
jointly signed a creditor’s rights transfer contract with AMIDA TRUSTLINK ASSETS MANAGEMENT CO., LTD. (“B party”). Under the contract, the Company and A party should pay $2,100,000 each (totaling $4,200,000) to jointly acquire whole creditor’s rights of mortgages, security interests and other dependent claims (collectively referred herein as the creditor’s rights) on the Splendor Hotel Taichung Building, and each bears 50% rights and obligations of this acquisition; when all creditor’s rights of this object turn into property rights, the Company and A party should pay B party totaling $1,000,000 as the cost and reward of B party for it is entrusted with the task to help turn the creditor’s rights as stated above into property rights, but any excess cost over $1,000,000 if incurred on this task shall be borne by B party on its own; the Company should pay B party $300,000 before June 30, 2006, and the Company and A party should jointly issue a promissory note of $1,800,000 to B party on the signing date; payment should be done before July 15, 2006. The title to the creditor’s rights as stated above had been transferred to the Company and A party on August 2, 2006. On December 29, 2006, the Company and A party signed an additional contract following the original contract with B party to raise total acquisition price of the creditor’s rights to $4,750,000 (the Company and A party bear 50% of the price each). As of December 31, 2012, the Company had paid its price.
(b) The Company and CHINA METAL PRODUCTS CO., LTD. jointly established The Splendor Hotel Chunggang (“A party”) by investing $200,000 each. On November 1, 2006, A party signed a certain assets transfer contract with The Splendor Hotel Chunggang (“B party”). Under the contract, A party should pay B party $352,310 for related employees’ service years, goods purchases and taxes, and A party should pay the shortfall, if any, up to the maximum of $100,000, and B party does not need to return the remainder, if any, to A party. The above payments required of A party were made from the share capital of its initial establishment.
D. Prepayment for land
110
~40~
(c)The Company’s creditor’s rights above amounting to $2,375,000 were originally receivablefrom The Splendor Hotel Chung-gang. After The Splendor Hotel Chung-gang and TheSplendor Hotel Taichung signed a certain assets transfer contract in December, 2006, thecreditor’s right to the above receivables were transferred to The Splendor Hotel Taichung. Asof December 31, 2012 and 2011, the Company’s creditor’s rights receivable from TheSplendor Hotel Taichung both amounted to $575,000.
(d)On January 16, 2007, the Company acquired 99.62% ownership in Jin-Yi-Xing Plywood Co.,Ltd. by cash. As of December 31, 2012 and 2011, the Company’s creditor’s rights receivablefrom Jin-Yi-Xing Plywood Co., Ltd. amounted to $480,186 and $490,338, respectively.
F. Accounts payable
G. Financing(a)Loans receivable from related parties (shown as other receivables-related parties) Year 2012:
None.
(b) Loans payable to related parties (shown as other payables-related parties)
Amount % Amount %
Ta-Chen Construction 191,827$ 8 -$ -Cheng-Shi Construction 128,311 5 32,702 4Prince Utility 98,712 4 40,720 5Others 6,036 - 2,471 -
424,886$ 17 75,893$ 9
December 31,2012 2011
Maximum Maximum Ending Interestbalance date balance balance Interest rate expense
Dong-Feng Enterprises 2011.01.01 413,600$ -$ 2.7% 3,132$
For the year ended December 31, 2011
Maximum Maximum Ending Interestbalance date balance balance Interest rate expense
Dong-Feng Enterprises 2012.01.01 240,000$ -$ 2.7% 4,474$
Maximum Maximum Ending Interestbalance date balance balance Interest rate expense
Dong-Feng Enterprises 2011.09.01 240,000$ 240,000$ 2.7% 2,166$
For the year ended December 31, 2012
For the year ended December 31, 2011
G. Financing(a) Loans receivable from related parties (shown as other receivables-related parties) Year
2012: None.
(b) Loans payable to related parties (shown as other payables-related parties)
(c) The Company’s creditor’s rights above amounting to $2,375,000 were originally receivable from The Splendor Hotel Chung-gang. After The Splendor Hotel Chung-gang and The Splendor Hotel Taichung signed a certain assets transfer contract in December, 2006, the creditor’s right to the above receivables were transferred to The Splendor Hotel Taichung. As of December 31, 2012 and 2011, the Company’s creditor’s rights receivable from The Splendor Hotel Taichung both amounted to $575,000.
(d) On January 16, 2007, the Company acquired 99.62% ownership in Jin-Yi-Xing Plywood Co., Ltd. by cash. As of December 31, 2012 and 2011, the Company’s creditor’s rights receivable from Jin-Yi-Xing Plywood Co., Ltd. amounted to $480,186 and $490,338, respectively.
F. Accounts payable
Prince Housing & Development Corp . Annual Report 2012
111
~41~
H. Endorsements and guarantees provided for related parties(a)Endorsements and guarantees provided by the related parties as of December 31, 2012 and
2011 were as follows:
(b)Endorsement and guarantees provided for the related parties are described in Note 7.
I. Salaries/rewards information of key management
Note:(a) Salaries and bonuses include regular wages, special responsibility allowances, pensions,
severance pay, various bonuses, rewards, etc.(b) Service execution fees include travel or transportation allowances, special expenditures,
various allowances, housing and vehicle benefits, etc.(c) Directors’ and supervisors’ remuneration and employees’ bonuses were those amounts
estimated and accrued in the statement of income for the current year.J. Others
(a)As of December 31, 2012 and 2011, the investee, Jin Yi Xing Plywood Co., Ltd., obtainedsecured loans from the bank both amounting to $1,246,889, by providing its land as collateral.
Names of Endorsers Total Credit Line Amount Drawn Down Interest ExpenseDong-Feng Enterprises 1,810,889$ 1,810,889$ 14,527$Jin-Yi-Xing Plywood 1,552,889 1,246,889 10,002Prince Utility 540,651 540,651 4,337Ta-Chen Construction - - 3,260
3,904,429$ 3,598,429$ 32,126$
Names of Endorsers Total Credit Line Amount Drawn Down Interest ExpenseDong-Feng Enterprises 1,810,889$ 1,810,889$ 13,582$Jin-Yi-Xing Plywood 2,500,000 1,246,889 8,238Prince Utility 540,651 540,651 2,189Ta-Chen Construction 927,889 423,733 3,178
5,779,429$ 4,022,162$ 27,187$
December 31, 2012
December 31, 2011
2012 2011Salaries and bonuses 115,140$ 100,845$Service execution fees 6,480 6,710Directors' and supervisors' remuneration andemployees' bonus 47,460 62,482
169,080$ 170,037$
(b) Endorsement and guarantees provided for the related parties are described in Note 7.
I. Salaries/rewards information of key management
H. Endorsements and guarantees provided for related parties(a) Endorsements and guarantees provided by the related parties as of December 31, 2012 and
2011 were as follows:
Note:(a) Salaries and bonuses include regular wages, special responsibility allowances, pensions,
severance pay, various bonuses, rewards, etc.(b) Service execution fees include travel or transportation allowances, special expenditures,
various allowances, housing and vehicle benefits, etc.(c) Directors’ and supervisors’ remuneration and employees’ bonuses were those amounts
estimated and accrued in the statement of income for the current year.J. Others
(a) As of December 31, 2012 and 2011, the investee, Jin Yi Xing Plywood Co., Ltd., obtained secured loans from the bank both amounting to $1,246,889, by providing its land as collateral.
112
(b) Certain short and long-term loans of the Company were guaranteed by its chairman, Chuang, Nan-Tien, and general manager, Hsieh, Ming-Fan.
(c) The accumulated operating losses of the subsidiary, the Splendor Hotel, had exceeded 50% of its paid-in capital and its current liabilities were greater than current assets. The Company was committed to give the Splendor Hotel financial support for its continuing operations for one year from the date of the financial support letter.
6. PLEDGED ASSETS
~42~
(b) Certain short and long-term loans of the Company were guaranteed by its chairman, Chuang,Nan-Tien, and general manager, Hsieh, Ming-Fan.
(c) The accumulated operating losses of the subsidiary, the Splendor Hotel, had exceeded 50% ofits paid-in capital and its current liabilities were greater than current assets. The Companywas committed to give the Splendor Hotel financial support for its continuing operations forone year from the date of the financial support letter.
6. PLEDGED ASSETS
7. COMMITMENTS AND CONTINGENT LIABILITIESA. According to the sale contracts, the Company should provide warranty on the house structure and
major facilities for one year from the handover day for the houses it sold. However, any damage tothe houses caused by disasters, additions to the houses made by the buyers, or events that are notattributed to the Company is not included in the scope of warranty.
The details of pledged assets were as follows:
Pledged asset December 31, 2012 December 31, 2011 PurposeDemand deposits (shown as other
financial assets - current)782,612$ 85,644$ Performance guarantees
Certificate of deposit and checkingdeposit (shown as other financialassets - non-current)
1,230 1,830 To obtain a higher credit for clients
Demand deposits and certificate ofdeposit (shown as other financialassets - non-current)
807,107 146,153 Short-term and long-term loans guarantee
Land held for construction 7,087,276 8,632,631 Short-term loans, notes and bills payableand long-term loans
Prepayment for land purchases 146,789 526,209 Short-term loans, notes and bills payable
Buildings and land held for sale 330,592 15,330 Short-term loans, notes and bills payable
Financial assets at fair value throughprofit or loss - current
76,593 76,027 Long-term loans
Available-for-sale financial assets 1,282,523 843,516 Short-term loans, notes and bills payableFinancial assets carried at cost 575,426 575,426 Short-term loans, notes and bills payableLong-term equity investments accounted
for under the equity method1,192,440 203,443 Short-term loans, notes and bills payable
Investments in real estate 162,426 162,426 Short-term loans, notes and bills payableand long-term loans
Land 91,782 55,370 Short-term loans, notes and bills payableand long-term loans
Buildings 239,037 95,739 Short-term loans, notes and bills payableand long-term loans
Property held for lease 4,562,712 4,260,463 Short-term loans, notes and bills payableand long-term loans
Other assets - other 1,055,186 1,065,338 Long-term loans18,393,731$ 16,745,545$
Book value
7. PLEDGED ASSETS
A. According to the sale contracts, the Company should provide warranty on the house structure and major facilities for one year from the handover day for the houses it sold. However, any damage to the houses caused by disasters, additions to the houses made by the buyers, or events that are not attributed to the Company is not included in the scope of warranty.
B. Information on the commitments of the Company relating to purchases from related parties is described in Note 5(2).
Prince Housing & Development Corp . Annual Report 2012
113
~43~
B. Information on the commitments of the Company relating to purchases from related parties isdescribed in Note 5(2).
C. Information on the commitments of the Company relating to financial support to related parties isdescribed in Note 5(2).
D. Information on the commitments of the Company on investments and related share capital paymentstatus is described in Note 4(7).
E. As of December 31, 2012 and 2011, the real estate sale contracts which were signed by theCompany and buyers but the ownership of the real estate had not been transferred to the buyersboth amounted to $483,321; payments already made for those contracts both amounted to $471,166;and future payments required from the buyers under those contracts both amounted to $12,155.
F. As of December 31, 2012 and 2011, the details of endorsements and guarantees provided to relatedparties were as follows:
For the years ended December 31, 2012 and 2011, the interest income received fromthe above guarantees and endorsements were $3,997 and $9,721, respectively.
G. On March 17, 2005, the Company (“A party”) signed a contract with National Taiwan University(“B party”) relating to the construction and operation of dormitories in Changxing St. Campus andShuiyuan Campus. The major terms of the contract are as follows:(a)Under the contract, B party should be responsible for acquiring the ownership or land-use right
for this project, and let A party use the land; A party must complete the construction within 3years from the registration of the superficies, and may operate the dormitories for 44 years(theCompany reached an agreement with B party that the operating period be changed from original32 years to 44 years), collecting dormitory rentals and use fees of other facilities from students,and should return the related assets to B party on the expiry of the contract.
(b)A party should give B party performance guarantee of $60,000 for the construction on thesigning date and $30,000 for operations before the start of operation. As of December 31, 2012and 2011, A party had provided performance guarantee with a guarantee letter issued by the bank,both amounting to $30,000.
(c)A party should pay B party land rentals from the registration of the superficies, according to theterms of the contract, and pay B party operating royalties from the third year of the operation,
Contract Amount Contract AmountCompany Name Amount Used Amount Used
The Splendor Hotel Taichung 1,932,720$ 1,717,720$ 1,832,720$ 1,456,547$Ta-Chen Construction &
Engineering Corp. 1,200,000 309,084 1,100,000 478,389Time Square International
Co., Ltd. 900,000 - 1,100,000 305,2904,032,720$ 2,026,804$ 4,032,720$ 2,240,226$
December 31, 2012 December 31, 2011
C. Information on the commitments of the Company relating to financial support to related parties is described in Note 5(2).
D. Information on the commitments of the Company on investments and related share capital payment status is described in Note 4(7).
E. As of December 31, 2012 and 2011, the real estate sale contracts which were signed by the Company and buyers but the ownership of the real estate had not been transferred to the buyers both amounted to $483,321; payments already made for those contracts both amounted to $471,166; and future payments required from the buyers under those contracts both amounted to $12,155.
F. As of December 31, 2012 and 2011, the details of endorsements and guarantees provided to related parties were as follows:
For the years ended December 31, 2012 and 2011, the interest income received from the above guarantees and endorsements were $3,997 and $9,721, respectively.
G. On March 17, 2005, the Company (“A party”) signed a contract with National Taiwan University (“B party”) relating to the construction and operation of dormitories in Changxing St. Campus and Shuiyuan Campus. The major terms of the contract are as follows:(a) Under the contract, B party should be responsible for acquiring the ownership or land-use right
for this project, and let A party use the land; A party must complete the construction within 3 years from the registration of the superficies, and may operate the dormitories for 44 years(the Company reached an agreement with B party that the operating period be changed from original 32 years to 44 years), collecting dormitory rentals and use fees of other facilities from students, and should return the related assets to B party on the expiry of the contract.
(b) A party should give B party performance guarantee of $60,000 for the construction on the signing date and $30,000 for operations before the start of operation. As of December 31, 2012 and 2011, A party had provided performance guarantee with a guarantee letter issued by the bank, both amounting to $30,000.
(c) A party should pay B party land rentals from the registration of the superficies, according to the terms of the contract, and pay B party operating royalties from the third year of the operation,based on 0.5% of dormitory rentals and use fees of other facilities collected from students.
(d) Terms of restrictions for A party:i) The ratio of A party’s own capital invested in this project to total construction cost of this
project should be at least 30%;
114
ii) During the operation period, the ratio of shareholders’ equity to total assets should be at least 25%; and current ratio (current assets/current liabilities) should be at least 100%;
iii) All rights acquired by A party under the contract, except other conditions specified in the contract and approved by B party, should not be transferred, leased, registered as a liability/obligation or become an executed object of civil litigation.
H. On May 10, 2005, the Company (“A party”) signed a contract with National Cheng Kung University (“B party”) relating to the construction and operation of student dormitories and alumni hall. The major terms of the contract are as follows:(a) Under the contract, B party should be responsible for acquiring the ownership or land-use right
for this project, and let A party use the land by way of registration of the superficies; A party must obtain the user license within 3 years after the signing date, and may operate the student dormitories and motorcycle parking lots for 35 years from the start of operation and collect dormitory rentals and use fees of other facilities from students for 50 years from the start of construction, and should return the related assets to B party on the expiry of the contract.
(b) A party should give B party performance guarantee of $50,000 for this project on the signing date, which will be returned in installment according to the contractual terms. As of December 31, 2012 and 2011, A party had provided performance guarantee with a guarantee letter issued by the bank, both amounting to $20,000.
(c) During the operation period, A party should pay B party dormitory operating royalties based on 2% of annual operating revenue of the dormitories and auxiliary facilities operating royalties based on 4% of annual operating revenue of the auxiliary facilities. A party should pay such operating royalties for prior year before the end of June every year. Further, according to the superficies contract signed by the two parties, A party should pay B party land rentals from the registration of superficies.
(d) All rights acquired by A party under the contract, except other conditions specified in the contract and approved by B party, should not be transferred, leased, registered as a liability/obligation or become an executed object of civil litigation.
I. The Company signed a syndicated loan contract with 9 banks - Ta Chong Bank as the lead bank for a credit line of $2.5 billion. The syndicated loans include medium-term (secured) loans, commercial paper guarantees and long-term (secured) loans. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company’s audited annual consolidated financial statements. If the Company violates the above financial commitments, it might be requested to stop drawing down all or part of the loans, and allor part of the loans might be asked to mature early, as resolved by the majority of the consortium.
J. The Company signed a syndicated loan contract with 7 banks - Mega International Commercial Bank as the lead bank for a credit line of $2.16 billion. The syndicated loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of dormitories in Changxing St. Campus and Shuiyuan Campus of National Taiwan University. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company’s audited annual consolidated financial statements. If the Company violates the above financial commitments, it shall improve its financial
Prince Housing & Development Corp . Annual Report 2012
115
position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the managing bank confirms that its financial position has improved completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25% per annum from the notification date of the managing bank to the completion date of financial improvement or to the date the Company obtains a waiver from the consortium for its violation.
K. The Company signed a loan contract with Mega International Commercial Bank for a credit line of $785 million. The loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of student dormitories and alumnus hall of National Cheng Kung University. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year. Current ratio and liability ratio shall be reviewed based on the Company’s audited annual consolidated financial statements, and interest coverage based on the Company’s revenue and expenditure table for the related project. If the Company violates the above financial commitments, it shall improve its financial position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the bank confirms that its financial position has improved completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25% per annum from the notification date of the bank to the completion date of financial improvement or to the date the Company obtains a waiver from the bank for its violation.
L. The Company signed a syndicated loan contract with 9 banks - Mega International Commercial Bank as the lead bank for a credit line of $3.6 billion. The syndicated loans are medium-term (secured) loans. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company’s audited annual consolidated financial statements. If the Company violates the above financial commitments, it shall improve its financial position before June 30 of the year when it presents the underlying financial statements; it would not be regarded as a default if the Company’s semiannual consolidated financial statements of that year reviewed by independent auditor show that the financial ratios/restrictions conform to the commitments again. In case of violation, interest on the loans would be charged at the loan rate of 0.80% per annum from the notification date of the managing bank to the completion date of financial improvement or to the date the Company obtains a waiver from the consortium for its violation.
M. For the requirement of the syndicated loans of subsidiary-The Splendor Hotel Taichung with SinoPac Bank, the Company promised to maintain financial commitments such as current ratio, liability ratio, tangible net equity and interest coverage. Those financial ratios/restrictions shall be reviewed based on the Company’s annual non-consolidated financial statements. If the Company violates the above financial commitments, the managing bank has the right to take the following actions, including but not limited, according to the contract or the resolution of majority of the consortium: 1) request the subsidiary to stop drawing down all or part of the loans; 2) cancel all or part of the credit line of the contract which has not been drawn down yet; 3) announce that all outstanding principal, interest and other accrued expenses payable to the consortium in relation to the loan contract should mature immediately; 4) demand the subsidiary’s payment of the
116
promissory note acquired under the loan contract; 5) exercise creditor’s right of mortgage, pledge right, other rights or contract transfer right; 6) exercise other rights given by the laws, the loan contract and other relevant documents; 7) take other actions as resolved by the majority of the consortium.
N. On May 18, 2007, the Company signed a contract with Taiwan Sugar Corporation (“TSC”) in relation to cooperative construction of houses. According to the contract, TSC shall provide Lot Nos. 12-12 and 601-1, Guo-An Sec., Xitun District, Taichung City and Lot No. 44, He-Guan Sec., Annan District, Tainan City; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to $1,810,889 and $927,889, respectively, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to $181,090 and $92,780, respectively, on the signing date, which will be returned in installments according to the contractual terms. As of December 31, 2012 and 2011, the Company had provided performance guarantee with a guarantee letter of the bank amounting to $181,090, $0 and $181,090, $24,160, respectively. The development of Lot No. 44, He-Guan Sec., Annan District, Tainan City has been postponed because of the consideration of capital planning, as approved by TSC. According to the Nan-Tu-Kai-Zi Letter No. 0980001113 of Tainan Office of TSC, the Company shall pay compensation fee amounting to $6,344 for this postponed development. The Company had paid such fee in 2010.
O. On July 11, July 22 and September 2, 2011, the Company signed a contract with Taiwan Sugar Corporation (“TSC”) in relation to cooperative construction of houses. According to the contracts, TSC shall provide Lot Nos. 11 and 12, Ming-Ding Sec., Fongshan District, Kaohsiung City and Lot Nos. 48 and 51, Hou-Bi-Tian Sec., Ciaotou District, Kaohsiung City and Lot Nos. 117 and 118, Qiao-Zhong Sec., Ciaotou District, Kaohsiung City, respectively; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to $273,680, $634,880 and $157,960, respectively, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to $27,370, $63,480 and $15,790, respectively, on the signing date, which will be returned in installments according to the contractual terms. As of December 31, 2012, the Company had provided such performance guarantee with a guarantee letter of bank amounting to $27,370, $63,480, 0 and $27,370, $63,480, $15,790.
P. The Company signed an agreement with Mr. Tsai Shuei-Pin on July 12, 2012 for joint construction of houses. Under those agreements, Mr. Tsai Shuei-Pin, the owner of land, shall provide the land located at No. 52 Yu-Shien Lot, Tai-Pian Dist. Taichung City, and the Company is responsible for the construction; the houses built would be allocated to both sides based on the specified proportion. In addition, the Company shall give performance bond in the amount $83,930, which would be returned to the Company in installments. As of December 31, 2012 and 2011, balance of the performance bond was $83,930 and $66,000, respectively.
Q. The Company signed an agreement with Mr. Fang Tsai-Yuan and World Vision United Co., Ltd. on March 5, 2012 and July 17, 2012, respectively, for joint construction of houses. Under those agreements, Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., the owners of land,
Prince Housing & Development Corp . Annual Report 2012
117
shall provide the land located at Nos. 572 and 602, Sec. Zhi-Shan 1, Shilin District, Taipei City, respectively, and the Company is responsible for the construction; the houses built up would be allocated to both sides based on the specified proportion. In addition, the Company shall give performance bond in the amount of $350,000 and $19,570 to Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., respectively, which would be returned to the Company in installments. As of December 31, 2012, balance of the performance bond was $350,000 and $19,570, respectively.
8. SIGNIFICANT CATASTROPHE
None.
9. SUBSEQUENT EVENTS
None.
118
10. O
TH
ER
S
A. T
he fa
ir va
lues
of t
he fi
nanc
ial i
nstru
men
ts
~48~
10.O
THER
S
A.T
hefa
irva
lues
ofth
efin
anci
alin
stru
men
ts
Quo
tatio
nsin
anEs
timat
edus
ing
aQ
uota
tions
inan
Estim
ated
usin
ga
Boo
kva
lue
activ
eM
arke
tva
luat
ion
met
hod
Boo
kva
lue
activ
eM
arke
tva
luat
ion
met
hod
Non
-der
ivat
ive
finan
cial
inst
rum
ents
Ass
ets
Fina
ncia
lass
etsw
ithbo
okva
lue
equa
lto
fair
valu
e7,
341,
284
$-
$7,
341,
284
$1,
946,
867
$-
$1,
946,
867
$
Fina
ncia
lass
etsa
tfai
rval
ueth
roug
hpr
ofit
orlo
ss76
,593
76,5
93-
76,0
2776
,027
-
Ava
ilabl
e-fo
r-sa
lefin
anci
alas
sets
-non
-cur
rent
1,48
9,35
01,
489,
350
-97
1,81
697
1,81
6-
Fina
ncia
lass
etsc
arrie
dat
cost
-non
-cur
rent
932,
135
--
999,
664
--
Oth
erfin
anci
alas
sets
-non
-cur
rent
808,
337
-80
8,33
714
7,98
3-
147,
983
Ref
unda
ble
depo
sits
492,
761
-49
0,26
185
,860
-85
,424
Liab
ilitie
s
Fina
ncia
llia
bilit
iesw
ithbo
okva
lue
equa
lto
8,69
3,24
8-
8,69
3,24
88,
390,
665
-8,
390,
665
fair
valu
e
Bon
dspa
yabl
e2,
000,
000
-2,
000,
000
--
-
Long
-term
loan
s(in
clud
ing
curr
entp
ortio
n)10
,616
,466
-10
,616
,466
13,9
14,9
54-
13,9
14,9
54
Gua
rant
eede
posi
tsre
ceiv
ed13
5,84
1-
135,
152
130,
187
-12
9,52
6
Der
ivat
ive
finan
cial
inst
rum
ents:
Non
e.
Dec
embe
r31,
2012
Dec
embe
r31,
2011
Fair
valu
eFa
irva
lue
Prince Housing & Development Corp . Annual Report 2012
119
The methods and assumptions used to estimate the fair values of financial instruments are summarized as follows:(a) The due dates of short-term financial instruments are near the balance sheet date. Accordingly,
the fair value of short-term financial instruments are estimated based on the amount at the balance sheet date which include the accounts of cash and cash equivalents, notes and accounts receivable, other receivables, other financial assets - current, short-term loans, notes and bills payable, notes and accounts payable, accrued expenses, and other payables.
(b) The fair values of pledged deposits (shown as "other financial assets - non-current") are estimated at its book value since its future maturity value will be affected by interest rate changes.
(c) The fair value of refundable deposits is based on the discounted value of expected future cash inflows, which are discounted based on the interest rate of one-year time deposit of the Postal Savings System as of December 31, 2012 and 2011.
(d) The fair value of ordinary bonds issued by the Company is based on the present value of expected cash flow amount. The discount rate is the effective interest rate of bonds payable in the current market, whose contractual terms are similar to those of ordinary bonds issued by the Company.
(e) Since long-term liabilities’ interest rates are approximate market interest rates and the discounted value of expected future cash flows are equivalent to the book value, the fair value is estimated at the book value basis.
C. The Company recognized the amount of $564,615 and $740,565 as addition to stockholders’ equity for the changes in fair value of available-for-sale financial assets as of December 31, 2012 and 2011, respectively.
D. As of December 31, 2012 and 2011, the Company’s financial assets subjected to fair value risk due to the change in interest rate amounted to $1,590,949 and $233,627, respectively. The financial liabilities subjected to cash flow risk due to the change in interest rate amounted to $16,089,693 and $20,663,023, respectively.
E. Procedures of financial risk control and hedge The Company’s activities expose it to a variety of financial risks: market risk, credit risk, liquidity
risk and cash flow interest rate risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures.
In order to achieve the goal of risk management, the Company's hedging activities are concentrated in the market value risk and cash flow risk.
F. Information of financial riska. Equity financial instruments: including financial assets at fair value through profit or loss,
available-for-sale financial assets and financial assets carried at cost.(a) Market risk
The equity financial instruments held by the Company were subject to the fluctuations in market prices. However, since the investment amount was not significant to the Company, it was assessed that the Company was not exposed to significant market risk.
(b) Credit riskFor financial assets with fair value through profit or loss, the Company had carried out
120
the transactions through the Taiwan Stock Exchange and GreTai Securities Market. These transactions are carried out only with counterparties with good credit standing and breaches of agreements are not expected. Thus, the likelihood that credit risk would arise is remote. The Company also assesses the credit ratings of the counterparties when they trade. The possibility of default by those parties is low.
(c) Liquidity riskThe equity financial instruments were traded in active markets and it was expected that these financial instruments would be readily sold at amounts approximate to their fair values. In the case of financial assets carried at cost without active market, the liquidity risk is material.
(d) Cash flow risk due to the fluctuation of interest rateThe equity financial instruments held by the Company were not interest-bearing instruments. Thus, the Company was not subject to cash flow risk arising from the fluctuation of the interest rate.
b. Notes and account receivable(a) Market risk
As the notes and accounts receivable held by the Company was due within one year, it was assessed that the Company was not exposed to significant market risk.
(b) Credit riskThe Company’s debtors of receivables have good credit standing and banks would verify debtors’ credit appropriately before they release loans. Therefore, it was assessed that the Company was not exposed to significant credit risk from receivables.
(c) Liquidity riskIt was assessed that Company was not exposed to significant liquidity risk as the Company’s notes and accounts receivable were all due within one year.
(d) Cash flow risk due to the fluctuation of interest rateIt was assessed that the Company was not exposed to significant cash flow risk due to change ininterest rate as the Company’s notes and accounts receivable were all due within one year.
c. Loans: including short-term loans, short-term notes and bills payable, bonds payable, long-term loans (including current portion).(a) Market risk
Loans of the Company are floating interest rate bearing and mostly due within one year. Thus, the Company did not expect to be exposed to significant market risk.
(b) Credit riskThe Company has good credit standing and the transactions with banks were normal. It wasassessed that the Company was not exposed to credit risk.
(c) Liquidity riskThe Company’s loans are mostly due within one year, and the cycle of housing construction to receivables is within a year. Thus, the working capital of the Company was considered sufficient to support its funding needs. The Company did not expect to be exposed to significant liquidity risk.
(d) Cash flow risk due to the fluctuation of interest rateLoans of the Company except bonds payable, are floating interest rate bearing. Thus, the
Prince Housing & Development Corp . Annual Report 2012
121
effective interest rate on the loans fluctuated based on changes in market interest rates. As a result, the future cash flow is expected to also fluctuate.
F. Financial statement presentation Certain accounts in the 2011 financial statements were reclassified to conform with the 2012
financial statement presentation.
122
~52~
11.A
DD
ITIO
NA
LD
ISC
LOSU
RES
REQ
UIR
EDB
YTH
ESE
CU
RIT
IES
AN
DFU
TUR
ESB
UR
EAU
(1)R
elat
edin
form
atio
nof
signi
fican
ttra
nsac
tions
Purs
uant
toth
edi
sclo
sure
requ
irem
ents
unde
rthe
Secu
ritie
sand
Exch
ange
Reg
ulat
ions
,sig
nific
antt
rans
actio
nsfo
rthe
year
ende
dD
ecem
ber3
1,20
12w
ere
asfo
llow
s:
A.L
oans
toot
hers
attri
bute
dto
finan
cing
activ
ities
asof
Dec
embe
r31,
2012
:
Not
ea:
The
num
berr
epre
sent
sthe
natu
reof
finan
cing
activ
ities
asfo
llow
s:1.
Trad
ing
partn
er.
2.Sh
ort-t
erm
finan
cing
.N
ote
1:In
acco
rdan
cew
ithth
eC
ompa
ny’s
rela
ted
regu
latio
ns,t
heto
tala
mou
ntfo
rloa
nis
40%
ofits
netw
orth
.N
ote
2:In
acco
rdan
cew
ithPr
ince
Apa
rtmen
tMan
agem
entM
aint
ain
Co.
,Ltd
.rel
ated
regu
latio
ns,t
heto
tala
mou
ntfo
rloa
nis
40%
ofits
netw
orth
.N
ote
3:In
acco
rdan
cew
ithD
ong-
Feng
Ente
rpris
esC
o.,L
td.r
elat
edre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.
Not
e4:
Inac
cord
ance
with
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.,L
td.r
elat
edre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.H
owev
er,t
heto
tala
mou
ntfo
rloa
nca
nnot
exce
ed40
%of
itsne
twor
thfo
rsh
ort-
term
finan
cing
.N
ote
5:A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$0
.N
ote
6:A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$1
,195
,615
.N
ote
7:Pr
ince
Prop
erty
Man
agem
entC
o.,L
td.h
adbe
endi
ssol
ved
onO
ctob
er1,
2012
beca
use
ofth
em
erge
rin
the
Gro
up.
Num
ber
Nam
eIte
mV
alue
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Cons
truct
ion
&En
gine
erin
gC
orp.
Oth
erre
ceiv
able
s-re
late
dpa
rties
500,
000
$50
0,00
0$
2.7
2-
$A
dditi
onal
oper
atin
gca
pita
l-
$-
-$
500,
000
$6,
779,
931
$1、
5
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Don
g-Fe
ngEn
terp
rises
Co.
,Ltd
.O
ther
rece
ivab
les-
rela
ted
parti
es50
0,00
0-
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-50
0,00
06,
779,
931
1
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Hsia
-Hai
re-p
lann
ing
dest
rict,
re-p
lann
ing
com
mitt
ee,R
en-W
uD
istric
t,K
aohs
iung
City
.
Oth
erre
ceiv
able
s1,
350,
000
1,35
0,00
02.
71
1,40
0,00
0N
one
--
-1,
400,
000
6,77
9,93
11、
6
1Pr
ince
Apa
rtmen
tM
anag
emen
tMai
ntai
nC
o.,
Ltd.
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.O
ther
rece
ivab
les-
rela
ted
parti
es15
,000
-2.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
15,0
0027
,141
2、7
2D
ong-
Feng
Ente
rpris
esC
o.,
Ltd.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.O
ther
rece
ivab
les-
rela
ted
parti
es24
0,00
0-
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-17
1,02
417
1,02
43
3Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.O
ther
rece
ivab
les-
rela
ted
parti
es50
0,00
030
0,00
02.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
500,
000
476,
636
4、5
Nam
eof
coun
terp
arty
Max
imun
bala
nce
durin
g20
12In
tere
stra
te
Nat
ure
offin
anci
ngac
tivity
(Not
ea)
Tata
ltra
nsac
tion
amou
ntN
ote
Allo
wan
cefo
rdo
ubtfu
lam
ount
Loan
limit
pere
ntity
Max
imum
amou
ntav
aila
ble
forl
oan
Acc
ount
Endi
ngba
lanc
e
Ass
etsp
ledg
ed
Rea
son
forf
inan
cing
11. A
DD
ITIO
NA
L D
ISC
LO
SUR
ES
RE
QU
IRE
D B
Y T
HE
SE
CU
RIT
IES
AN
D F
UT
UR
ES
BU
RE
AU
(1).
Rel
ated
info
rmat
ion
of s
igni
fican
t tra
nsac
tions
Pu
rsua
nt to
the
disc
losu
re re
quire
men
ts u
nder
the
Secu
ritie
s an
d Ex
chan
ge R
egul
atio
ns, s
igni
fican
t tra
nsac
tions
for t
he y
ear e
nded
Dec
embe
r 31,
20
12 w
ere
as fo
llow
s:A
. Loa
ns to
oth
ers
attri
bute
d to
fina
ncin
g ac
tiviti
es a
s of
Dec
embe
r 31,
201
2:
~52~
11.A
DD
ITIO
NA
LD
ISC
LOSU
RES
REQ
UIR
EDB
YTH
ESE
CU
RIT
IES
AN
DFU
TUR
ESB
UR
EAU
(1)R
elat
edin
form
atio
nof
signi
fican
ttra
nsac
tions
Purs
uant
toth
edi
sclo
sure
requ
irem
ents
unde
rthe
Secu
ritie
sand
Exch
ange
Reg
ulat
ions
,sig
nific
antt
rans
actio
nsfo
rthe
year
ende
dD
ecem
ber3
1,20
12w
ere
asfo
llow
s:
A.L
oans
toot
hers
attri
bute
dto
finan
cing
activ
ities
asof
Dec
embe
r31,
2012
:
Not
ea:
The
num
berr
epre
sent
sthe
natu
reof
finan
cing
activ
ities
asfo
llow
s:1.
Trad
ing
partn
er.
2.Sh
ort-t
erm
finan
cing
.N
ote
1:In
acco
rdan
cew
ithth
eC
ompa
ny’s
rela
ted
regu
latio
ns,t
heto
tala
mou
ntfo
rloa
nis
40%
ofits
netw
orth
.N
ote
2:In
acco
rdan
cew
ithPr
ince
Apa
rtmen
tMan
agem
entM
aint
ain
Co.
,Ltd
.rel
ated
regu
latio
ns,t
heto
tala
mou
ntfo
rloa
nis
40%
ofits
netw
orth
.N
ote
3:In
acco
rdan
cew
ithD
ong-
Feng
Ente
rpris
esC
o.,L
td.r
elat
edre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.
Not
e4:
Inac
cord
ance
with
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.,L
td.r
elat
edre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.H
owev
er,t
heto
tala
mou
ntfo
rloa
nca
nnot
exce
ed40
%of
itsne
twor
thfo
rsh
ort-
term
finan
cing
.N
ote
5:A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$0
.N
ote
6:A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$1
,195
,615
.N
ote
7:Pr
ince
Prop
erty
Man
agem
entC
o.,L
td.h
adbe
endi
ssol
ved
onO
ctob
er1,
2012
beca
use
ofth
em
erge
rin
the
Gro
up.
Num
ber
Nam
eIte
mV
alue
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Cons
truct
ion
&En
gine
erin
gC
orp.
Oth
erre
ceiv
able
s-re
late
dpa
rties
500,
000
$50
0,00
0$
2.7
2-
$A
dditi
onal
oper
atin
gca
pita
l-
$-
-$
500,
000
$6,
779,
931
$1、
5
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Don
g-Fe
ngEn
terp
rises
Co.
,Ltd
.O
ther
rece
ivab
les-
rela
ted
parti
es50
0,00
0-
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-50
0,00
06,
779,
931
1
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Hsia
-Hai
re-p
lann
ing
dest
rict,
re-p
lann
ing
com
mitt
ee,R
en-W
uD
istric
t,K
aohs
iung
City
.
Oth
erre
ceiv
able
s1,
350,
000
1,35
0,00
02.
71
1,40
0,00
0N
one
--
-1,
400,
000
6,77
9,93
11、
6
1Pr
ince
Apa
rtmen
tM
anag
emen
tMai
ntai
nC
o.,
Ltd.
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.O
ther
rece
ivab
les-
rela
ted
parti
es15
,000
-2.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
15,0
0027
,141
2、7
2D
ong-
Feng
Ente
rpris
esC
o.,
Ltd.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.O
ther
rece
ivab
les-
rela
ted
parti
es24
0,00
0-
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-17
1,02
417
1,02
43
3Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.O
ther
rece
ivab
les-
rela
ted
parti
es50
0,00
030
0,00
02.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
500,
000
476,
636
4、5
Nam
eof
coun
terp
arty
Max
imun
bala
nce
durin
g20
12In
tere
stra
te
Nat
ure
offin
anci
ngac
tivity
(Not
ea)
Tata
ltra
nsac
tion
amou
ntN
ote
Allo
wan
cefo
rdo
ubtfu
lam
ount
Loan
limit
pere
ntity
Max
imum
amou
ntav
aila
ble
forl
oan
Acc
ount
Endi
ngba
lanc
e
Ass
etsp
ledg
ed
Rea
son
forf
inan
cing
Prince Housing & Development Corp . Annual Report 2012
123
~53~
B.E
ndor
sem
ents
and
guar
ante
espr
ovid
eddu
ring
the
year
ende
dD
ecem
ber3
1,20
12:
Not
ea:
An
inve
stee
com
pany
.The
guar
ante
esw
ere
prov
ided
base
don
the
Com
pany
’spr
opor
tiona
tesh
are
inth
ein
vest
eeco
mpa
ny.
Not
e1:
Inac
cord
ance
with
thec
ompa
ny’s
relat
edre
gulat
ions
,thet
otal
amou
ntof
trans
actio
nsof
endo
rsem
ents
and
guar
antee
sand
thel
imit
ofen
dorse
men
tsan
dgu
aran
teesf
oran
ysin
gleo
fthe
nen
tity
is20
%of
thec
ompa
ny’s
netw
orth
.N
ote
2:In
acco
rdan
cew
ithth
eC
ompa
ny’s
rela
ted
regu
latio
ns,t
heto
tala
ccum
ulat
edam
ount
oftra
nsac
tions
ofen
dors
emen
tsan
dgu
aran
tees
cann
otex
ceed
50%
ofth
eC
ompa
ny’s
netw
orth
.N
ote
3:In
acco
rdan
cew
ithTa
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
’sre
late
dre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,5
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$3
,000
,000
.N
ote
4:In
acco
rdan
cew
ithD
ong-
Feng
Ente
rpris
esC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$2,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$4
,000
,000
.N
ote
5:In
acco
rdan
cew
ithPr
ince
Util
ityC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
,000
,000
.N
ote
6:In
acco
rdan
cew
ithJin
-Yi-X
ing
plyw
ood
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$2
,500
,000
,the
tota
lacc
umul
ated
amou
ntis
$5,0
00,0
00.
Not
e7:
Inac
cord
ance
with
Chen
g-Sh
iCon
struc
tion
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$1
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
00,0
00.
Not
e8:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsi
gned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$309
,084
.N
ote
9:En
dors
emen
tsan
dgu
aran
tees
amou
ntis
the
amou
ntof
the
endo
rsem
enta
ndgu
aran
tee
cont
ract
sign
edw
ithth
eba
nk.A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$0
.N
ote
10:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsig
ned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,7
17,7
20.
Not
e11:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,8
10,8
89.
Not
e12:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn$5
40,65
1.
Not
e13:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,246,889.
Num
ber
Nam
eof
endo
rser
sN
ame
ofen
dors
ees
Rel
atio
nshi
pN
ote
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.
Subs
idia
ry3,
389,
965
$1,
200,
000
$1,
200,
000
$-
$7
8,47
4,91
3$
1、2、
8
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Tim
eSq
uare
Inte
rnat
iona
lCo.
,Lt
d.
Subs
idia
ry3,
389,
965
1,10
0,00
090
0,00
0-
58,
474,
913
1、2、
9
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
The
Sple
ndor
Hot
elTa
ichu
ngN
ote
a3,
389,
965
1,93
2,72
01,
932,
720
-11
8,47
4,91
31、
2、10
1Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
500,
000
927,
889
--
-3,
000,
000
3
2D
ong-
Feng
Ente
rpris
esC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
000,
000
1,81
0,88
91,
810,
889
-42
44,
000,
000
4、11
3Pr
ince
Util
ityC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
000,
000
540,
651
540,
651
-96
52,
000,
000
5、12
4Ji
n-Y
i-Xin
gpl
ywoo
dC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
500,
000
1,55
2,88
91,
552,
889
-48
35,
000,
000
6、13
5C
heng
-shi
Con
stru
ctio
nC
o.,L
td.
Prin
ceSe
curit
yC
o.,
Ltd.
Aff
iliat
edco
mpa
ny10
0,00
0-
--
-20
0,00
07
Rat
ion
ofac
cum
ulat
edam
ount
tone
twor
thof
the
com
pany
Max
imum
amou
ntof
endo
rsem
ent
Endo
rsee
Endo
rsem
entl
imit
fora
sing
leen
tity
Hig
hest
bala
nce
durin
gth
epe
riod
Out
stan
ding
bala
nce
asat
Dec
embe
r31,
2012
Bal
ance
secu
red
byco
llate
ral
B. E
ndor
sem
ents
and
gua
rant
ees
prov
ided
dur
ing
the
year
end
ed D
ecem
ber 3
1, 2
012:
~53~
B.E
ndor
sem
ents
and
guar
ante
espr
ovid
eddu
ring
the
year
ende
dD
ecem
ber3
1,20
12:
Not
ea:
An
inve
stee
com
pany
.The
guar
ante
esw
ere
prov
ided
base
don
the
Com
pany
’spr
opor
tiona
tesh
are
inth
ein
vest
eeco
mpa
ny.
Not
e1:
Inac
cord
ance
with
thec
ompa
ny’s
relat
edre
gulat
ions
,thet
otal
amou
ntof
trans
actio
nsof
endo
rsem
ents
and
guar
antee
sand
thel
imit
ofen
dorse
men
tsan
dgu
aran
teesf
oran
ysin
gleo
fthe
nen
tity
is20
%of
thec
ompa
ny’s
netw
orth
.N
ote
2:In
acco
rdan
cew
ithth
eC
ompa
ny’s
rela
ted
regu
latio
ns,t
heto
tala
ccum
ulat
edam
ount
oftra
nsac
tions
ofen
dors
emen
tsan
dgu
aran
tees
cann
otex
ceed
50%
ofth
eC
ompa
ny’s
netw
orth
.N
ote
3:In
acco
rdan
cew
ithTa
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
’sre
late
dre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,5
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$3
,000
,000
.N
ote
4:In
acco
rdan
cew
ithD
ong-
Feng
Ente
rpris
esC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$2,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$4
,000
,000
.N
ote
5:In
acco
rdan
cew
ithPr
ince
Util
ityC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
,000
,000
.N
ote
6:In
acco
rdan
cew
ithJin
-Yi-X
ing
plyw
ood
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$2
,500
,000
,the
tota
lacc
umul
ated
amou
ntis
$5,0
00,0
00.
Not
e7:
Inac
cord
ance
with
Chen
g-Sh
iCon
struc
tion
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$1
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
00,0
00.
Not
e8:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsi
gned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$309
,084
.N
ote
9:En
dors
emen
tsan
dgu
aran
tees
amou
ntis
the
amou
ntof
the
endo
rsem
enta
ndgu
aran
tee
cont
ract
sign
edw
ithth
eba
nk.A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$0
.N
ote
10:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsig
ned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,7
17,7
20.
Not
e11:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,8
10,8
89.
Not
e12:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn$5
40,65
1.
Not
e13:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,246,889.
Num
ber
Nam
eof
endo
rser
sN
ame
ofen
dors
ees
Rel
atio
nshi
pN
ote
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.
Subs
idia
ry3,
389,
965
$1,
200,
000
$1,
200,
000
$-
$7
8,47
4,91
3$
1、2、
8
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Tim
eSq
uare
Inte
rnat
iona
lCo.
,Lt
d.
Subs
idia
ry3,
389,
965
1,10
0,00
090
0,00
0-
58,
474,
913
1、2、
9
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
The
Sple
ndor
Hot
elTa
ichu
ngN
ote
a3,
389,
965
1,93
2,72
01,
932,
720
-11
8,47
4,91
31、
2、10
1Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
500,
000
927,
889
--
-3,
000,
000
3
2D
ong-
Feng
Ente
rpris
esC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
000,
000
1,81
0,88
91,
810,
889
-42
44,
000,
000
4、11
3Pr
ince
Util
ityC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
000,
000
540,
651
540,
651
-96
52,
000,
000
5、12
4Ji
n-Y
i-Xin
gpl
ywoo
dC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
500,
000
1,55
2,88
91,
552,
889
-48
35,
000,
000
6、13
5C
heng
-shi
Con
stru
ctio
nC
o.,L
td.
Prin
ceSe
curit
yC
o.,
Ltd.
Aff
iliat
edco
mpa
ny10
0,00
0-
--
-20
0,00
07
Rat
ion
ofac
cum
ulat
edam
ount
tone
twor
thof
the
com
pany
Max
imum
amou
ntof
endo
rsem
ent
Endo
rsee
Endo
rsem
entl
imit
fora
sing
leen
tity
Hig
hest
bala
nce
durin
gth
epe
riod
Out
stan
ding
bala
nce
asat
Dec
embe
r31,
2012
Bal
ance
secu
red
byco
llate
ral
124
C. M
arke
tabl
e se
curit
ies
held
as
at D
ecem
ber 3
1, 2
012:
~54~
C.M
arke
tabl
ese
curit
iesh
eld
asat
Dec
embe
r31,
2012
:
Nam
eof
the
Type
ofR
elat
ions
hip
with
the
Gen
eral
ledg
erC
arry
ing
Perc
enta
geof
com
pany
inve
stm
ent
Nam
eof
inve
stee
com
pani
esC
ompa
nyac
coun
tsN
umbe
rofs
hare
sam
ount
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Hou
sing
&D
evel
opm
entC
orp.
Stoc
kC
heng
-Shi
Inve
stm
entH
oldi
ngsC
o.,
Ltd.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
120,
807,
230
539,
263
$10
0.00
11.2
2$
"Pr
ince
Prop
erty
Man
agem
ent
Con
sulti
ngC
o.,L
td.(f
orm
erly
Prin
ceR
ealE
stat
eA
gent
Co.
,Ltd
.)
""
17,1
46,5
8022
3,90
310
0.00
14.0
8
"G
eng-
Din
gC
o.,L
td.
The
inve
stee
com
pany
acco
unte
dfo
rund
erth
eeq
uity
met
hod
"18
,000
,000
317,
735
30.0
017
.65
3
"Pr
ince
Hou
sing
Inve
stm
entC
o.,L
td.
Subs
idia
ry"
428
312,
282
100.
0078
3,68
0.91
"B
ioSu
nTe
chno
logy
Co.
,Ltd
."
"4,
688,
000
24,1
2310
0.00
4.84
"Pr
ince
Bio
tech
nolo
gyC
o.,L
td.
""
250,
000
2,38
550
.00
9.54
"Pr
ince
Ta-C
hen
Inve
stm
entC
o.,L
td.
""
12,2
70,1
0041
,920
99.9
73.
42"
Don
g-Fe
ngEn
terp
rises
Co.
,Ltd
."
"20
,400
,194
231,
522
100.
0020
.96
"U
ni-P
resi
dent
Dev
elop
men
tCor
p.Th
ein
vest
eeco
mpa
nyac
coun
ted
foru
nder
the
equi
tym
etho
d
"10
8,00
0,00
098
0,70
830
.00
9.08
4
"Th
eSp
lend
erH
otel
Taic
hung
Subs
idia
ry"
97,5
00,0
0038
3,07
850
.00
3.93
"Ti
me
Squa
reIn
tern
atio
nalH
otel
Co.
,Lt
d."
"60
,000
,000
438,
189
100.
007.
30
"Ji
n-Y
i-Xin
gPl
ywoo
dC
o.,L
td.
""
151,
468
661,
381
99.6
52,
120.
19"
Early
Succ
essI
nves
tmen
tsLt
d."
"1,
554,
660
40,5
0610
0.00
26.0
5"
Min
g-D
aEn
terp
rise
Co.
,Ltd
.Th
ein
vest
eeco
mpa
nyac
coun
ted
foru
nder
the
equi
tym
etho
d
"3,
640,
000
132,
453
20.0
014
.85
"Sp
lend
orA
sset
Man
agem
entC
o.,L
td.
Subs
idia
ry"
50,0
0048
750
.00
9.74
"Pr
ince
Ass
etM
anag
emen
tCo.
,Ltd
."
"2,
190
1,24
410
0.00
497.
67"
Nan
tex
Indu
stry
Co.
,Ltd
.N
one
Ava
ilabl
e-fo
r-sa
lefin
anci
alas
sets
-no
n-cu
rren
t
5,83
8,40
210
9,47
0N
ote
118
.75
List
edco
mpa
ny,
Not
e5
"Sc
inoP
harm
Taiw
an,L
td.
""
19,4
02,3
481,
354,
284
Not
e1
69.8
0Li
sted
com
pany
,N
ote
6
Dec
embe
r31,
2012
Prince Housing & Development Corp . Annual Report 2012
125
~55~
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rel
atio
nshi
pw
ithth
eC
ompa
nyG
ener
alle
dger
acco
unts
Num
bero
fsh
ares
Car
ryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Hou
sing
&D
evel
opm
ent
Cor
p.
Stoc
kSi
mpl
oTe
chno
logy
Co.
,Ltd
.N
one
Ava
ilabl
e-fo
r-sa
lefin
anci
alas
sets
-no
n-cu
rren
t
127,
249
18,5
78$
Not
e1
146.
00$
OTC
com
pany
"A
dvan
ced
Wire
less
Sem
icon
duct
orC
ompa
ny"
"19
7,93
74,
137
Not
e1
20.9
0O
TCco
mpa
ny
"Tr
ade-
Van
Info
rmat
ion
Serv
ice
Co.
,Ltd
."
"85
,535
2,03
6N
ote
123
.80
List
edco
mpa
ny
"A
cthe
rmIn
c."
"45
,224
696
Not
e1
15.4
0O
TCco
mpa
ny"
Gen
ome
Inte
rnat
iona
lBio
med
ical
Co.
,Ltd
."
"1,
311
149
Not
e1
113.
50O
TCco
mpa
ny
"U
nive
rsal
Ven
ture
Cap
ital
Inve
stm
entC
orp.
"Fi
nanc
iala
sset
sca
rrie
dat
cost
-no
n-cu
rren
t
1,40
0,00
014
,000
Not
e1
Not
e2
"Pr
esid
entE
nerg
yD
evel
opm
ent
Ltd.
""
1,27
5,00
036
,989
Not
e1
Not
e2
"Pr
esid
entI
nter
natio
nal
Dev
elop
men
tCor
p."
"87
,745
,770
841,
520
6.63
Not
e2
7
"G
rand
Bill
sFin
ance
Cor
p."
"48
,672
473
Not
e1
Not
e2
"Ji
a-C
heng
Ven
ture
Cap
ital
Inve
stm
entC
o.,L
td.
""
759,
024
-N
ote
1N
ote
2
"Ji
a-H
uaV
entu
reC
apita
lIn
vest
men
tCo.
,Ltd
."
"1,
211,
228
-7.
90N
ote
2
Stoc
kC
hipw
ellT
ech.
Cor
p.N
one
Fina
ncia
lass
ets
carr
ied
atco
st-
non-
curr
ent
887,
970
1,77
6N
ote
1N
ote
2
"Ev
er-M
ove
Tech
nolo
gyC
o.,L
td.
""
15,3
81-
Not
e1
Not
e2
"C
huan
g-Ji
ngTe
chno
logy
Co.
,"
"12
,645
-N
ote
1N
ote
2"
Bao
-Mao
Tech
nolo
gyC
o.,L
td.
""
27,9
33-
Not
e1
Not
e2
"Ji
e-Lu
nTe
chno
logy
Co.
,Ltd
."
"17
,280
-N
ote
1N
ote
2"
Qua
n-M
aoTe
chno
logy
Inc.
""
341,
745
-N
ote
1N
ote
2
Dec
embe
r31,
2012
126
~56~
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rel
atio
nshi
pw
ithth
eC
ompa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Car
ryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Hou
sing
&D
evel
opm
entC
orp.
Stoc
kW
ei-J
unTe
chno
logy
Co.
,Ltd
.N
one
Fina
ncia
lass
etsc
arrie
dat
cost
-no
n-cu
rren
t1,
846
-$
Not
e1
Not
e2
"N
anm
atTe
chno
loog
yC
o.,L
td.
""
1,09
9,96
010
,700
5.00
Not
e2
"So
uthe
rnSc
ienc
eJo
intD
evel
opm
ent
Co.
,Ltd
."
"16
7,70
01,
677
10.0
0N
ote
2
"So
uthe
rnSc
ienc
eJo
int
Dev
elop
men
tCo.
,Ltd
.-pr
efer
red
stoc
k
""
2,50
0,00
025
,000
50.0
0N
ote
2
"C
hieh
-Che
ngTe
chno
logy
Co.
,Ltd
."
"41
,343
-N
ote
1N
ote
2
Fund
Meg
aD
iam
ond
Mon
eyM
arke
tFun
d"
Fina
ncia
lass
etsa
tfai
rval
ueth
roug
hpr
ofit
orlo
ss-n
on-
6,30
1,40
676
,593
Not
e1
12
Che
ng-S
hiIn
vest
men
tH
oldi
ngsC
o.,L
td.
Stoc
kTa
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stm
ents
acco
unte
dfo
rund
erth
eeq
uity
124,
000,
000
1,19
1,59
110
0.00
9.61
"Pr
ince
Util
ityC
o.,L
td.
""
3,07
0,00
056
,025
100.
0018
.25
"C
heng
-Shi
Con
stru
ctio
nC
o.,L
td.
""
10,1
00,0
0010
8,02
710
0.00
10.7
0Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
"Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Pare
ntco
mpa
nyFi
nanc
iala
sset
satf
airv
alue
thro
ugh
prof
itor
loss
-cur
rent
34,4
35,7
2071
2,81
9N
ote
120
.70
"N
ante
xIn
dust
ryC
o.,L
td.
Non
e"
10,2
85,6
9919
2,85
7N
ote
118
.75
Fund
Yua
nta
Glo
balR
ealty
&In
fras
truct
ure
Acc
."
"1,
000,
000
7,07
0N
ote
17
Stoc
kTa
Che
nIn
tern
atio
nal(
Bru
nei)
Cor
p.Su
bsid
iary
Long
-term
equi
tyin
vest
men
tsac
coun
ted
foru
nder
the
equi
ty20
1,00
02,
923
100.
0014
.54
"Pr
ince
Bio
tech
nolo
gyC
o.,L
td.
Aff
iliat
edC
ompa
ny"
225,
000
2,14
745
.00
9.54
"C
hipw
ellT
ech.
Cor
p.N
one
Fina
ncia
lass
etsc
arrie
dat
cost
-no
n-cu
rren
t1,
113,
000
5,56
5N
ote
1N
ote
2
"N
anm
atTe
chno
logy
Co.
,Ltd
."
"1,
233,
600
12,0
005.
56N
ote
2
Dec
embe
r31,
2012
Prince Housing & Development Corp . Annual Report 2012
127
~57~
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rel
atio
nshi
pw
ithth
eC
ompa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Car
ryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Hou
sing
Inve
stm
entC
o.,
Ltd.
Stoc
kPP
GIn
vest
men
tInc
.Th
ein
vest
eeco
mpa
nyac
coun
ted
foru
nder
the
equi
tym
etho
d
Long
-term
equi
tyin
vest
men
tsac
coun
ted
foru
nder
273
US$
1,96
927
.27
US$
7,21
2
"Q
ueen
Hol
ding
sLtd
."
"2,
730
US$
9,35
227
.27
US$
3,42
6"
Tou
Itsu
Inve
stm
ents
Inc.
Non
eFi
nanc
iala
sset
sca
rrie
dat
cost
-no
n-cu
rren
t
600
US$
0.6
15.0
0N
ote
2
Prin
ceTa
-Che
nIn
vest
men
tCo.
,Lt
d.
Stoc
kPr
ince
Cap
ital,
Inc.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
12,
640
100.
002,
640
"C
hipw
ellT
ech.
Cor
p.N
one
Fina
ncia
lass
ets
carr
ied
atco
st-
non-
curr
ent
207,
536
913
Not
e1
Not
e2
"D
a-H
ung
Tech
nolo
gyC
o.,L
td.
""
300,
000
-N
ote
1N
ote
2"
Ever
-Mor
eTe
chno
logy
Co.
,Lt
d."
"39
5,89
0-
Not
e1
Not
e2
"C
huan
g-C
hing
Softw
are
Co.
,"
"11
6,74
181
9N
ote
1N
ote
2"
Form
osof
tInt
erna
tiona
lInc
.53
,258
366
Not
e1
Not
e2
"K
e-Y
aTe
chno
logy
Co.
,Ltd
."
"23
,156
-N
ote
1N
ote
2"
Jia-
Che
ngV
entu
reC
apita
lIn
vest
men
tCo.
,Ltd
."
"29
1,00
0-
Not
e1
Not
e2
"Ji
a-H
uaV
entu
reC
apita
lIn
vest
men
tCo.
,Ltd
."
"48
0,00
0-
Not
e1
Not
e2
"Q
uan-
Mao
Tech
nolo
gyIn
c."
"9,
897
-N
ote
1N
ote
2"
Jie-
Che
ngTe
chno
logy
Co.
,Ltd
."
"41
,434
-N
ote
1N
ote
2"
Bao
-Mao
Tech
nolo
gyC
o.,L
td.
""
960,
697
-N
ote
1N
ote
2"
Uni
vers
alC
hu-C
hing
Co.
,Ltd
."
"71
,923
-N
ote
1N
ote
2"
Chu
ang-
Jing
Tech
nolo
gyC
o.,
Ltd.
""
4,84
2-
Not
e1
Not
e2
"W
ei-J
unTe
chno
logy
Co.
,Ltd
."
"70
7-
Not
e1
Not
e2
"Ji
e-Lu
nTe
chno
logy
Co.
,Ltd
."
"6,
617
-N
ote
1N
ote
2Pr
ince
Ta-C
hen
Inve
stm
entC
o.,
Ltd.
Stoc
kA
cthe
rmIn
c.N
one
Ava
ilabl
e-fo
r-sal
efin
anci
alas
sets
-no
n-cu
rren
t
17,3
1726
7N
ote
115
.40
Dec
embe
r31,
2012
128
~58~
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rel
atio
nshi
pw
ithth
eC
ompa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Car
ryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Ta-C
hen
Inve
stm
entC
o.,L
td.
Fund
Taiw
anB
estS
elec
tion
Non
eFi
nanc
iala
sset
sat
fair
valu
eth
roug
hpr
ofit
orlo
ss-c
urre
nt
500,
000
5,41
0$
Not
e1
10.8
2$
Stoc
kG
enom
eIn
tern
atio
nal
Bio
med
ical
Co.
Ltd.
""
92-
Not
e1
113.
50
"H
olux
Tech
nolo
gyIn
c."
"27
9,50
92,
622
Not
e1
9.38
Prin
ceU
tility
Co.
,Ltd
."
Prin
ceB
iote
chno
logy
Co.
,Ltd
.A
ffili
ated
Com
pany
Long
-term
equi
tyin
vest
men
tsac
coun
ted
foru
nder
the
equi
tym
etho
d
5,00
047
Not
e1
9.54
Prin
cePr
oper
tyM
anag
emen
tC
onsu
lting
CO
.,Lt
d.(fo
rmer
lyPr
ince
Rea
lEst
ate
App
rais
alC
o.,L
td.)
"Pr
ince
Apa
rtmen
tMan
agem
ent
Mai
ntai
nC
o.,L
td.
Subs
idia
ry"
3,00
0,00
067
,853
100.
0022
.62
"Pr
ince
Secu
rity
Co.
,Ltd
."
"13
,172
,636
161,
794
100.
0012
.25
"Pr
ince
Bio
tech
nolo
gyC
o.,L
td.
Aff
iliat
eC
ompa
ny"
15,0
0014
2N
ote
19.
54Pr
ince
Apa
rtmen
tM
anag
emen
tMai
ntai
nC
o.,L
td.
"Pr
ince
Hou
sing
&D
evel
opm
ent
Cor
p.Pa
rent
com
pany
Ava
ilabl
e-fo
r-sa
lefin
anci
alas
sets
-no
n-cu
rren
t
578,
486
7,49
5N
ote
120
.70
"Ta
inan
Spin
ning
Co.
,Ltd
.N
one
"11
5,73
32,
003
Not
e1
14.6
5"
Prin
ceB
iote
chno
logy
Co.
,Ltd
.A
ffili
ate
Com
pany
Long
-term
equi
tyin
vest
men
tsac
coun
ted
foru
nder
the
equi
tym
etho
d
5,00
047
Not
e1
9.54
Don
g-Fe
ngEn
terp
rises
Co.
,Ltd
.St
ock
Am
ida
Trus
tlink
Ass
ets
Man
agem
entC
o.,L
td.
The
inve
stee
com
pany
acco
unte
dfo
rund
erth
eeq
uity
met
hod
Long
-term
equi
tyin
vest
men
tsac
coun
ted
foru
nder
the
equi
tym
etho
d
37,0
25,6
2531
7,98
645
.21
8.59
"Sy
nta
Phar
mac
eutic
alsC
orp.
Non
eA
vaila
ble-
for-
sale
finan
cial
asse
ts-
non-
curr
ent
180,
000
47,0
68N
ote
1U
S$26
1.49
Dec
embe
r31,
2012
Prince Housing & Development Corp . Annual Report 2012
129
~59~
Not
e1:
Perc
enta
geof
com
pany
’sow
ners
hip
isle
ssth
an5%
.N
ote
2:W
eha
veno
trec
eive
dth
efin
anci
alsta
tem
ents
from
man
agem
ent.
Thus
the
netv
alue
cann
otbe
mea
sure
d.N
ote
3:12
,000
,000
shar
esof
outst
andi
ngco
mm
onst
ock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
4:10
8,00
0,00
0sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e5:
4,08
8,45
1sh
ares
ofou
tsta
ndin
gco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e6:
17,2
76,0
00sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e7:
60,0
00,0
00sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e8:
30,7
63,3
97sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e9:
7,71
5,98
0sh
ares
ofou
tsta
ndin
gco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e10
:N
otap
plic
able
fora
limite
dco
mpa
ny.
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rel
atio
nshi
pw
ithth
eC
ompa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Car
ryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
eD
ong-
Feng
Ente
rpris
esC
o.,
Ltd.
Stoc
kN
ante
xIn
dust
ryC
o.,L
td.
Non
eA
vaila
ble-
for-s
ale
finan
cial
asse
ts-
non-
curr
ent
149,
942
2,81
1N
ote
118
.75
"Su
ngG
ang
Ass
etM
anag
emen
tC
o.,L
td.
""
2,08
3,33
339
,896
Not
e1
19.1
5
Prin
ceC
apita
l,In
c."
Prin
ceV
entu
resU
SAIn
c.Su
bsid
iary
Long
-term
equi
tyin
vest
men
tsac
coun
ted
foru
nder
the
equi
tym
etho
d
1U
S$11
310
0.00
US$
0.19
Prin
ceV
entu
res
USA
Inc.
Fund
SHO
RT
TER
MU
STR
EAS
ISS
CLA
SSN
one
Fina
ncia
lass
etsa
tfa
irva
lue
thro
ugh
prof
itor
loss
-cur
rent
65,0
00U
S$66
Not
e1
US$
1.00
Stoc
kSy
nta
Phar
mac
eutic
alsC
orp.
""
5,00
0U
S$45
Not
e1
US$
9.02
Prin
ceSe
curit
yC
o.,L
td.
"N
anm
atTe
chno
logy
Co.
,Ltd
."
Fina
ncia
lass
ets
carr
ied
atco
st-
non-
curr
ent
164,
480
1,60
0N
ote
1N
ote
2
Early
Succ
ess
Inve
stm
ents
Ltd.
"Sy
nta
Phar
mac
eutic
alsC
orp.
Non
eFi
nanc
iala
sset
sat
fair
valu
eth
roug
hpr
ofit
orlo
ss-c
urre
nt
154,
800
US$
1,39
6N
ote
1U
S$9.
02
Ta-C
hen
Inte
rnat
iona
l(B
rune
i)C
orp.
"Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
g(V
ietn
am)C
orp.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
Not
e10
US$
6710
0.00
Not
e10
Dec
embe
r31,
2012
~59~
Not
e1:
Perc
enta
geof
com
pany
’sow
ners
hip
isle
ssth
an5%
.N
ote
2:W
eha
veno
trec
eive
dth
efin
anci
alsta
tem
ents
from
man
agem
ent.
Thus
the
netv
alue
cann
otbe
mea
sure
d.N
ote
3:12
,000
,000
shar
esof
outst
andi
ngco
mm
onst
ock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
4:10
8,00
0,00
0sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e5:
4,08
8,45
1sh
ares
ofou
tsta
ndin
gco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e6:
17,2
76,0
00sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e7:
60,0
00,0
00sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e8:
30,7
63,3
97sh
ares
ofou
tstan
ding
com
mon
stoc
kw
ere
used
asco
llate
ralf
orlo
an.
Not
e9:
7,71
5,98
0sh
ares
ofou
tsta
ndin
gco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e10
:N
otap
plic
able
fora
limite
dco
mpa
ny.
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rel
atio
nshi
pw
ithth
eC
ompa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Car
ryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
eD
ong-
Feng
Ente
rpris
esC
o.,
Ltd.
Stoc
kN
ante
xIn
dust
ryC
o.,L
td.
Non
eA
vaila
ble-
for-s
ale
finan
cial
asse
ts-
non-
curr
ent
149,
942
2,81
1N
ote
118
.75
"Su
ngG
ang
Ass
etM
anag
emen
tC
o.,L
td.
""
2,08
3,33
339
,896
Not
e1
19.1
5
Prin
ceC
apita
l,In
c."
Prin
ceV
entu
resU
SAIn
c.Su
bsid
iary
Long
-term
equi
tyin
vest
men
tsac
coun
ted
foru
nder
the
equi
tym
etho
d
1U
S$11
310
0.00
US$
0.19
Prin
ceV
entu
res
USA
Inc.
Fund
SHO
RT
TER
MU
STR
EAS
ISS
CLA
SSN
one
Fina
ncia
lass
etsa
tfa
irva
lue
thro
ugh
prof
itor
loss
-cur
rent
65,0
00U
S$66
Not
e1
US$
1.00
Stoc
kSy
nta
Phar
mac
eutic
alsC
orp.
""
5,00
0U
S$45
Not
e1
US$
9.02
Prin
ceSe
curit
yC
o.,L
td.
"N
anm
atTe
chno
logy
Co.
,Ltd
."
Fina
ncia
lass
ets
carr
ied
atco
st-
non-
curr
ent
164,
480
1,60
0N
ote
1N
ote
2
Early
Succ
ess
Inve
stm
ents
Ltd.
"Sy
nta
Phar
mac
eutic
alsC
orp.
Non
eFi
nanc
iala
sset
sat
fair
valu
eth
roug
hpr
ofit
orlo
ss-c
urre
nt
154,
800
US$
1,39
6N
ote
1U
S$9.
02
Ta-C
hen
Inte
rnat
iona
l(B
rune
i)C
orp.
"Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
g(V
ietn
am)C
orp.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
Not
e10
US$
6710
0.00
Not
e10
Dec
embe
r31,
2012
130
~60~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rela
tions
hip
Num
bero
fN
umbe
rof
Num
bero
fG
ain
Num
bero
fN
umbe
rof
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Endi
ngba
lanc
eD
ispos
alB
egin
ning
bala
nce
Add
ition
Oth
erin
crea
se(d
ecre
ase)
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rel
atio
nshi
pof
the
orig
inal
owne
rw
ithth
eC
ompa
ny
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisfo
rpric
ede
term
inat
ion
Acq
uisit
ion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rC
opor
atio
nN
one
--
--
$N
egot
iate
dpr
ice
Con
stru
ctio
nN
ote
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,60
024
1,60
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
D. A
ccum
ulat
ed a
dditi
ons
and
disp
osal
s of
indi
vidu
al m
arke
tabl
e se
curit
y ex
ceed
ing
$100
mill
ion
or 2
0% o
f the
Com
pany
’s c
ontri
bute
d ca
pita
l:
E. A
cqui
sitio
n of
real
est
ate
exce
edin
g $1
00 m
illio
n or
20%
of t
he C
ompa
ny’s
con
tribu
ted
capi
tal:
~60~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rela
tions
hip
Num
bero
fN
umbe
rof
Num
bero
fG
ain
Num
bero
fN
umbe
rof
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Endi
ngba
lanc
eD
ispos
alB
egin
ning
bala
nce
Add
ition
Oth
erin
crea
se(d
ecre
ase)
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rel
atio
nshi
pof
the
orig
inal
owne
rw
ithth
eC
ompa
ny
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisfo
rpric
ede
term
inat
ion
Acq
uisit
ion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rC
opor
atio
nN
one
--
--
$N
egot
iate
dpr
ice
Con
stru
ctio
nN
ote
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,60
024
1,60
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
~60~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rela
tions
hip
Num
bero
fN
umbe
rof
Num
bero
fG
ain
Num
bero
fN
umbe
rof
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Endi
ngba
lanc
eD
ispos
alB
egin
ning
bala
nce
Add
ition
Oth
erin
crea
se(d
ecre
ase)
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rel
atio
nshi
pof
the
orig
inal
owne
rw
ithth
eC
ompa
ny
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisfo
rpric
ede
term
inat
ion
Acq
uisit
ion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rC
opor
atio
nN
one
--
--
$N
egot
iate
dpr
ice
Con
stru
ctio
nN
ote
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,60
024
1,60
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
~60~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rela
tions
hip
Num
bero
fN
umbe
rof
Num
bero
fG
ain
Num
bero
fN
umbe
rof
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Endi
ngba
lanc
eD
ispos
alB
egin
ning
bala
nce
Add
ition
Oth
erin
crea
se(d
ecre
ase)
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rel
atio
nshi
pof
the
orig
inal
owne
rw
ithth
eC
ompa
ny
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisfo
rpric
ede
term
inat
ion
Acq
uisit
ion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rC
opor
atio
nN
one
--
--
$N
egot
iate
dpr
ice
Con
stru
ctio
nN
ote
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,60
024
1,60
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
Prince Housing & Development Corp . Annual Report 2012
131
F. D
ispo
sal o
f rea
l est
ate
exce
edin
g $1
00 m
illio
n or
20%
of t
he C
ompa
ny’s
con
tribu
ted
capi
tal:
~61~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
~61~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
G. P
urch
ases
fro
m o
r sa
les
to r
elat
ed p
artie
s ex
ceed
ing
$100
mill
ion
or 2
0% o
f th
e C
ompa
ny’s
con
trib
uted
cap
ital
duri
ng t
he y
ear
ende
d D
ecem
ber 3
1, 2
012:
~61~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
~61~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
132
H. R
ecei
vabl
es fr
om re
late
d pa
rties
exc
eedi
ng $
100
mill
ion
or 2
0% o
f the
Com
pany
’s c
ontri
bute
d ca
pita
l as
at D
ecem
ber 3
1, 2
012:
~62~
H.R
ecei
vabl
esfro
mre
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eCo
mpa
ny’s
cont
ribut
edca
pita
lasa
tDec
embe
r31,
2012
:
I.Inf
orm
atio
non
deriv
ativ
ein
stru
men
tstra
nsac
tions
:Non
e.
Cre
dito
rC
ount
erpa
rtyR
elat
ions
hip
with
the
Com
pany
Bal
ance
asat
Dec
embe
r31,
2012
Turn
over
rate
Am
ount
Act
ion
Take
n
Am
ount
colle
cted
subs
eque
ntto
the
bala
nce
shee
tdat
eA
llow
ance
for
doub
tfula
ccou
nts
The
Sple
nder
Hot
elTa
ichu
ngSu
bsid
iary
Oth
eras
sets
--
$-
-$
-$
575,
000
$Ji
nY
iXin
gPl
ywoo
dC
o.,L
td.
Subs
idia
ryO
ther
asse
ts-
--
--
480,
185
$C
hung
,Wu-
Chu
anTh
eC
hairm
an's
spou
seA
ccou
ntsr
ecei
vabl
e 185,
560
$-
--
185,
560
-
Ove
rdue
rece
ivab
les
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
I. In
form
atio
n on
der
ivat
ive
inst
rum
ents
tran
sact
ions
: Non
e.
Prince Housing & Development Corp . Annual Report 2012
133
~63~
(2)D
iscl
osur
ein
form
atio
nof
inve
stee
com
pany
Info
rmat
ion
ofin
vest
eeco
mpa
nies
asD
ecem
ber3
1,20
12is
disc
lose
dbe
low
:
Inve
stor
Inve
stee
Loca
tion
Mai
nac
tiviti
esCu
rrenc
yD
ecem
ber3
1,20
12C
urre
ncy
Dec
embe
r31,
2011
Num
bero
fsh
ares
Perc
enta
geC
urre
ncy
Car
ryin
gam
ount
Cur
renc
yA
mou
ntC
urre
ncy
Am
ount
Not
e
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.Ta
iwan
Con
stru
ctio
nN
TD-
$N
TD1,
240,
000
$-
-N
TD-
$N
TD29
2,42
5$
NTD
88,6
26$
1、2
Prin
ceU
tility
Co.
,Ltd
.Ta
iwan
Elec
trici
tyan
dw
ater
pipe
mai
nten
ance
NTD
-N
TD38
,800
--
NTD
-N
TD22
,144
NTD
10,1
651、
2
Che
ng-S
hiIn
vest
men
tH
oldi
ngsC
o.,L
td.
Taiw
anG
ener
alin
vest
men
tsN
TD1,
379,
950
NTD
-12
0,80
7,23
010
0.00
NTD
539,
263
NTD
-N
TD-
2
Prin
cePr
oper
tyM
anag
emen
tCon
sulti
ngC
o.,L
td.(f
orm
erly
Prin
ceR
ealE
stat
eA
gent
Co.
,Ltd
.)
Taiw
anM
anag
emen
tand
cons
ultin
gN
TD18
1,00
0N
TD10
,000
17,1
46,5
8010
0.00
NTD
223,
903
NTD
2,03
4N
TD1,
019
2
Prin
ceR
ealE
stat
eA
ppra
isal
Co.
,Ltd
.Ta
iwan
Rea
lest
ate
appr
aisa
lN
TD-
NTD
1,00
0-
-N
TD-
NTD
88)
(N
TD26
53
Gen
g-D
ing
Co.
,Ltd
.Ta
iwan
Hot
elsa
ndca
terin
gN
TD12
0,00
0N
TD12
0,00
018
,000
,000
30.0
0N
TD31
7,73
5N
TD41
,902
NTD
12,5
71
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.,
Ltd.
Taiw
anM
anag
emen
tof
apar
tmen
tsN
TD-
NTD
30,0
00-
-N
TD-
NTD
8,03
9N
TD8,
462
1、2
Prin
ceH
ousin
gIn
vest
men
tC
o.,L
td.
Brits
hV
irgin
Isla
nds
Ove
rsea
sin
vest
men
tU
SD4,
280
USD
4,28
042
810
0.00
NTD
312,
282
NTD
18,0
94N
TD18
,094
2
BioS
unTe
chno
logy
Co.
,Lt
d.Ta
iwan
Ant
i-mild
ew's
impo
rtan
dex
port
NTD
46,8
80N
TD46
,880
4,68
8,00
010
0.00
NTD
24,1
23N
TD7,
633)
(N
TD7,
633)
(2
Prin
ceBi
otec
hnol
ogy
Co.
,Lt
d.Ta
iwan
Res
earc
han
dde
velo
pmen
tof
biol
ogic
alpr
epar
atio
n
NTD
2,50
0N
TD2,
500
250,
000
50.0
0N
TD2,
385
NTD
104
NTD
522
Prin
ceSe
curit
yC
o.,L
td.
Taiw
anSe
curit
yN
TD-
NTD
10,0
00-
-N
TD-
NTD
19,4
49N
TD5,
990
1、2
Prin
ceTa
-Che
nIn
vest
men
tC
o.,L
td.
Taiw
anG
ener
alin
vest
men
tsN
TD19
8,94
0N
TD19
8,94
012
,270
,100
99.9
7N
TD41
,920
NTD
388)
(N
TD38
8)(
2
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Taiw
anH
ouse
build
ersa
ndsa
les
NTD
965,
034
NTD
1,15
0,03
420
,400
,194
100.
00N
TD23
1,52
2N
TD64
,002
NTD
64,0
021、
2
Initi
alin
vest
men
tam
ount
Hol
ding
stat
usN
etin
com
e(lo
ss)o
fin
vest
eeco
mpa
nyIn
vest
men
tinc
ome
(loss
)re
cogn
ized
byth
eC
ompa
ny
Prin
ceH
ousin
g&
Dev
elop
men
tC
orp.
(2).
Dis
clos
ure
info
rmat
ion
of in
vest
ee c
ompa
ny
Inf
orm
atio
n of
inve
stee
com
pani
es a
s D
ecem
ber 3
1, 2
012
is d
iscl
osed
bel
ow:
134
~64~
Inve
stor
Inve
stee
Loca
tion
Mai
nac
tiviti
esC
urre
ncy
Dec
embe
r31,
2012
Cur
renc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Cur
renc
yC
arry
ing
amou
ntC
urre
ncy
Am
ount
Cur
renc
yA
mou
ntN
ote
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.U
ni-P
resid
ent
Dev
elop
men
tCor
p.Ta
iwan
Leas
ing
ofbu
ildin
gsN
TD1,
080,
000
$N
TD1,
080,
000
$10
8,00
0,00
030
.00
NTD
980,
708
$N
TD23
1,72
5$
NTD
69,5
09$
Che
ng-S
hiC
onst
ruct
ion
Co.
,Ltd
.Ta
iwan
Con
stru
ctio
nN
TD-
NTD
61,1
50-
-N
TD-
NTD
7,03
8N
TD7,
092
1、2
The
Sple
ndor
Hot
elTa
ichu
ngTa
iwan
Hot
elsa
ndca
terin
gN
TD97
5,00
0N
TD97
5,00
097
,500
,000
50.0
0N
TD38
3,07
8N
TD16
,972
)(
NTD
8,48
6)(
2
Tim
eSq
uare
Inte
rnat
iona
lCo.
,Ltd
.Ta
iwan
Hot
elsa
ndca
terin
gN
TD60
0,00
0N
TD60
0,00
060
,000
,000
100.
00N
TD43
8,18
9N
TD13
8,77
9N
TD14
5,21
52
Jin-Y
i-Xin
gPl
ywoo
dC
o.,L
td.
Taiw
anM
anuf
actu
reof
plyw
oods
NTD
636,
194
NTD
636,
194
151,
468
99.6
5N
TD66
1,38
1N
TD8,
198
NTD
8,16
92
Early
Succ
ess
Inve
stm
ents
Ltd.
Brits
hV
irgin
Isla
nds
Ove
rsea
sin
vest
men
tN
TD33
,018
NTD
33,0
181,
554,
660
100.
00N
TD40
,506
NTD
19,9
19N
TD19
,919
2
Min
g-D
aEn
terp
rise
Co.
,Ltd
.Ta
iwan
Rea
lest
ate
tradi
ngN
TD12
7,40
0N
TD12
7,40
03,
640,
000
20.0
0N
TD13
2,45
3N
TD76
5N
TD1,
565)
(
Sple
ndor
Ass
ets
Man
agem
entC
o.,L
td.
Taiw
anM
anag
emen
tco
nsul
ting
NTD
500
NTD
500
50,0
0050
.00
NTD
487
NTD
2N
TD1
2
Prin
ceA
sset
sM
anag
emen
tLLC
.H
ong
Kon
gO
vers
eas
inve
stm
ent
NTD
62,6
31N
TD72
,956
2,19
010
0.00
NTD
1,24
4N
TD18
,779
NTD
7,87
12
Che
ngSh
iInv
estm
ent
Hol
ding
sCo.
,Ltd
.Ta
-Che
nC
onstr
ucio
n&
Engi
neer
ing
Cor
p.Ta
iwan
Con
stru
ctio
nN
TD1,
191,
591
NTD
-12
4,00
0,00
010
0.00
NTD
1,19
1,59
1N
TD29
2,42
5N
TD-
2
Prin
ceU
tility
Co.,
Ltd.
Taiw
anEl
ectri
city
and
wat
erpi
pem
aint
enan
ce
NTD
56,0
25N
TD-
3,07
0,00
010
0.00
NTD
56,0
25N
TD22
,144
NTD
-2
Che
ng-S
hiC
onst
ruct
ion
Co.
,Ltd
.Ta
iwan
Con
stru
ctio
nN
TD10
8,02
7N
TD-
10,1
00,0
0010
0.00
NTD
108,
027
NTD
7,03
8N
TD-
2
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.Pr
ince
Ente
rtain
men
tC
o.,L
td.
Taiw
anM
anag
emen
tof
ente
rtain
men
tN
TD-
NTD
4,90
0-
-N
TD-
NTD
88)
(N
TD-
3
Initi
alin
vest
men
tam
ount
Hol
ding
Stat
usN
etin
com
e(lo
ss)o
fin
vest
eeco
mpa
nyIn
vest
men
tinc
ome
(loss
)re
cogn
ized
byth
eC
ompa
ny
Prince Housing & Development Corp . Annual Report 2012
135
~65~
Inve
stor
Inve
stee
Loca
tion
Maj
orac
tiviti
esC
urre
ncy
Dec
embe
r31,
2012
Cur
renc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Cur
renc
yC
arry
ing
amou
ntC
urre
ncy
Am
ount
Cur
renc
yA
mou
ntN
ote
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.Ta
-Che
nIn
tern
atio
nal
(Bru
nei)
Cor
p.B
rune
iO
vers
eas
inve
stm
ent
NTD
5,91
6$
NTD
1,96
4$
201,
000
100.
00N
TD2,
923
$N
TD2,
877)
($N
TD-
$2
Prin
ceB
iote
chno
logy
Co.
,Ltd
.Ta
iwan
Res
erch
and
deve
lopm
ento
fbi
olog
ical
prep
arat
ion
NTD
2,25
0N
TD2,
250
225,
000
45.0
0N
TD2,
147
NTD
104
NTD
-2
Prin
ceSe
curit
yCo
.,Lt
d.Ta
iwan
Secu
rity
NTD
-N
TD10
,000
--
NTD
-N
TD19
,449
NTD
-2
Prin
ceH
ousin
gIn
vest
men
tC
o.,L
td.
PPG
Inve
stm
entI
nc.
USA
Ove
rsea
sin
vest
men
tU
SD1,
909
USD
1,90
927
327
.27
USD
1,96
9U
SD48
7)(
USD
-
Que
enH
oldi
ngsL
td.
Brits
hV
irgin
Isla
nds
Ove
rsea
sin
vest
men
tU
SD4,
091
USD
4,09
12,
730
27.2
7U
SD9,
352
USD
2,11
0U
SD-
Prin
ceTa
-Che
nIn
vest
men
tC
o.,L
td.
Prin
ceC
apita
l,Inc
.B
ritsh
Virg
inIs
land
s
Ove
rsea
sin
vest
men
tN
TD26
,727
NTD
26,7
271
100.
00N
TD2,
640
USD
3)(
NTD
-2
Prin
ceU
tility
Co.
,Ltd
.Pr
ince
Biot
echn
olog
yC
o.,L
td.
Taiw
anR
eser
chan
dde
velo
pmen
tof
biol
ogic
alpr
epar
atio
n
NTD
50N
TD50
5,00
01.
00N
TD47
NTD
104
NTD
-2
Prin
cePr
oper
tyM
anag
emen
tCon
sulti
ngC
o.,L
td.(
form
erly
Prin
ceR
ealE
stat
eA
gent
Co.
,Ltd
.)
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.
,Ltd
.
Taiw
anM
anag
emen
tof
apar
tmen
tsN
TD67
,853
NTD
-3,
000,
000
100.
00N
TD67
,853
NTD
8,03
9N
TD-
2
Prin
ceSe
curit
yC
o.,
Ltd.
Taiw
anSe
curit
yN
TD15
9,61
1N
TD-
13,1
72,6
3610
0.00
NTD
161,
794
NTD
19,4
49N
TD-
2
Prin
ceBi
otec
hnol
ogy
Co.
,Ltd
.Ta
iwan
Res
erch
and
deve
lopm
ento
fbi
olog
ical
prep
arat
ion
NTD
150
NTD
-15
,000
3.00
NTD
142
NTD
104
NTD
-2
Initi
alin
vest
men
tam
ount
Hol
ding
Stat
usN
etin
com
e(lo
ss)o
fin
vest
eeco
mpa
nyIn
vestm
enti
ncom
e(lo
ss)
reco
gniz
edby
the
Com
pany
136
~66~
Not
e1:
The
diffe
renc
ebe
twee
nth
ein
com
e(lo
ss)
ofth
ein
vest
eean
dth
ein
vest
men
tinc
ome
(loss
)of
the
inve
stee
reco
gniz
edby
the
Com
pany
isth
ein
vest
men
tinc
ome
(loss
)of
the
inve
stee
reco
gniz
edby
the
Com
pany
inpr
opor
tion
toth
esh
are
owne
rshi
pan
dun
real
ized
gain
(loss
)fro
mel
imin
atio
nof
inte
r-com
pany
trans
actio
ns.
Not
e2:
Subs
idia
ry.
Not
e3:
Itha
dbe
endi
ssol
ved
onO
ctob
er1,
2012
beca
use
ofth
em
erge
rin
the
Gro
up.
(3)I
nfor
mat
ion
onin
vest
men
tin
Mai
nlan
dC
hina
:Non
e.
12.S
egm
entI
nfor
mat
ion
Inac
cord
ance
with
R.O
.C.S
FAS
No.
41,“
Ope
ratin
gSe
gmen
ts”,
segm
enti
nfor
mat
ion
isdi
sclo
sed
inth
eco
nsol
idat
edfin
anci
alsta
tem
ents
.
Inve
stor
Inve
stee
Loca
tion
Maj
orac
tiviti
esC
urre
ncy
Dec
embe
r31,
2012
Cur
renc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Cur
renc
yC
arry
ing
amou
ntC
urre
ncy
Am
ount
Cur
renc
yA
mou
ntN
ote
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.
,Lt
d.
Prin
ceSe
curit
yC
o.,
Ltd.
Taiw
anSe
curit
yN
TD-
$N
TD10
,000
$-
-N
TD-
$N
TD19
,449
$N
TD-
$2
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.Ta
iwan
Dev
elop
men
tof
publ
icho
usin
gan
dbu
ildin
gan
dits
rent
al
NTD
-N
TD5,
000
--
NTD
-N
TD22
)(
NTD
-3
Prin
ceBi
otec
hnol
ogy
Co.
,Ltd
.Ta
iwan
Res
erch
and
deve
lopm
ento
fbi
olog
ical
prep
arat
ion
NTD
50N
TD50
5,00
01.
00N
TD47
NTD
104
NTD
-2
Don
g-Fe
ngEn
terp
rises
Co.
,Ltd
.A
mid
aTr
ustli
nkA
sset
sMan
agem
ent
Co.
,Ltd
.
Taiw
anD
evel
opm
ento
fpu
blic
hous
ing
and
build
ing
and
itsre
ntal
NTD
459,
295
NTD
459,
295
37,0
25,6
2545
.21
NTD
317,
986
NTD
72,6
78N
TD-
Prin
ceC
apita
l,In
c.Pr
ince
Ven
ture
sU
SAIn
c.Br
itsh
Virg
inIs
land
s
Ove
rsea
sinv
estm
ent
NTD
20,5
11N
TD20
,511
110
0.00
USD
113
USD
2)(
NTD
-2
Prin
ceSe
curit
yC
o.,L
td.
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.Ta
iwan
Dev
elop
men
tof
publ
icho
usin
gan
dbu
ildin
gan
dits
rent
al
NTD
-N
TD5,
000
--
NTD
-N
TD22
)(
NTD
-3
Ta-C
hen
Inte
rnat
iona
l(B
rune
i)C
orp.
TaCh
enC
onst
ruct
ion
&En
gine
erin
g(V
ietn
am)C
orp.
Vie
tnam
Con
stru
ctio
nU
SD20
1U
SD66
-10
0.00
USD
67U
SD99
)(
USD
-2
Initi
alin
vest
men
tam
ount
Hol
ding
Stat
usN
etin
com
e(lo
ss)o
fin
vest
eeco
mpa
nyIn
vestm
enti
ncom
e(lo
ss)
reco
gniz
edby
the
Com
pany
~66~
Not
e1:
The
diffe
renc
ebe
twee
nth
ein
com
e(lo
ss)
ofth
ein
vest
eean
dth
ein
vest
men
tinc
ome
(loss
)of
the
inve
stee
reco
gniz
edby
the
Com
pany
isth
ein
vest
men
tinc
ome
(loss
)of
the
inve
stee
reco
gniz
edby
the
Com
pany
inpr
opor
tion
toth
esh
are
owne
rshi
pan
dun
real
ized
gain
(loss
)fro
mel
imin
atio
nof
inte
r-com
pany
trans
actio
ns.
Not
e2:
Subs
idia
ry.
Not
e3:
Itha
dbe
endi
ssol
ved
onO
ctob
er1,
2012
beca
use
ofth
em
erge
rin
the
Gro
up.
(3)I
nfor
mat
ion
onin
vest
men
tin
Mai
nlan
dC
hina
:Non
e.
12.S
egm
entI
nfor
mat
ion
Inac
cord
ance
with
R.O
.C.S
FAS
No.
41,“
Ope
ratin
gSe
gmen
ts”,
segm
enti
nfor
mat
ion
isdi
sclo
sed
inth
eco
nsol
idat
edfin
anci
alsta
tem
ents
.
Inve
stor
Inve
stee
Loca
tion
Maj
orac
tiviti
esC
urre
ncy
Dec
embe
r31,
2012
Cur
renc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Cur
renc
yC
arry
ing
amou
ntC
urre
ncy
Am
ount
Cur
renc
yA
mou
ntN
ote
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.
,Lt
d.
Prin
ceSe
curit
yC
o.,
Ltd.
Taiw
anSe
curit
yN
TD-
$N
TD10
,000
$-
-N
TD-
$N
TD19
,449
$N
TD-
$2
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.Ta
iwan
Dev
elop
men
tof
publ
icho
usin
gan
dbu
ildin
gan
dits
rent
al
NTD
-N
TD5,
000
--
NTD
-N
TD22
)(
NTD
-3
Prin
ceBi
otec
hnol
ogy
Co.
,Ltd
.Ta
iwan
Res
erch
and
deve
lopm
ento
fbi
olog
ical
prep
arat
ion
NTD
50N
TD50
5,00
01.
00N
TD47
NTD
104
NTD
-2
Don
g-Fe
ngEn
terp
rises
Co.
,Ltd
.A
mid
aTr
ustli
nkA
sset
sMan
agem
ent
Co.
,Ltd
.
Taiw
anD
evel
opm
ento
fpu
blic
hous
ing
and
build
ing
and
itsre
ntal
NTD
459,
295
NTD
459,
295
37,0
25,6
2545
.21
NTD
317,
986
NTD
72,6
78N
TD-
Prin
ceC
apita
l,In
c.Pr
ince
Ven
ture
sU
SAIn
c.Br
itsh
Virg
inIs
land
s
Ove
rsea
sinv
estm
ent
NTD
20,5
11N
TD20
,511
110
0.00
USD
113
USD
2)(
NTD
-2
Prin
ceSe
curit
yC
o.,L
td.
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.Ta
iwan
Dev
elop
men
tof
publ
icho
usin
gan
dbu
ildin
gan
dits
rent
al
NTD
-N
TD5,
000
--
NTD
-N
TD22
)(
NTD
-3
Ta-C
hen
Inte
rnat
iona
l(B
rune
i)C
orp.
TaCh
enC
onst
ruct
ion
&En
gine
erin
g(V
ietn
am)C
orp.
Vie
tnam
Con
stru
ctio
nU
SD20
1U
SD66
-10
0.00
USD
67U
SD99
)(
USD
-2
Initi
alin
vest
men
tam
ount
Hol
ding
Stat
usN
etin
com
e(lo
ss)o
fin
vest
eeco
mpa
nyIn
vestm
enti
ncom
e(lo
ss)
reco
gniz
edby
the
Com
pany
(3).
Info
rmat
ion
on in
vest
men
t in
Mai
nlan
d C
hina
: Non
e.
12. S
egm
ent I
nfor
mat
ion
In a
ccor
danc
e w
ith R
.O.C
. SFA
S N
o. 4
1, “
Ope
ratin
g Se
gmen
ts”,
seg
men
t inf
orm
atio
n is
dis
clos
ed in
the
cons
olid
ated
fina
ncia
l sta
tem
ents
.
Prince Housing & Development Corp . Annual Report 2012
137
PRINCE HOUSING & DEVELOPMENTCORP. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
REPORT OF INDEPENDENTACCOUNTANTS
DECEMBER 31, 2012 AND 2011
For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.
138
REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE
To the Board of Directors and Stockholders of Prince Housing & Development Corp.
We have audited the accompanying consolidated balance sheets of Prince Housing & Development Corp. and subsidiaries as of December 31, 2012 and 2011, and the related consolidated statements of income, of changes in stockholders’ equity and of cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the 2012 and 2011 financial statements of certain long-term investments accounted for under the equity method. These long-term equity investments amounted to NT$810,735 thousand and NT$760,609 thousand as of December 31, 2012 and 2011, respectively, and the related net investment income amounted to NT$63,192 thousand and NT$31,553 thousand for the years then ended. We also did not audit the financial statements of certain subsidiaries which statements reflect total assets of NT$1,450,174 thousand and NT$1,491,576 thousand, as of December 31, 2012 and 2011, respectively, both representing 3% of the related consolidated totals, and total operating revenue of NT$518,027 thousand and NT$1,282,619 thousand, representing 4% and 9% of the related consolidated totals for the years then ended. The financial statements of these investee companies and subsidiaries were audited by other auditors whose reports thereon have been furnished to us and our opinion expressed herein, insofar as it relates to the amounts included in the financial statements is based solely on the reports of the other auditors.
We conducted our audits in accordance with the “Regulations Governing the Examination of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China. Those standards and rules require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.
Prince Housing & Development Corp . Annual Report 2012
139
In our opinion, based on our audits and reports of other auditors, the consolidated financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of Prince Housing & Developments Corp. and subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for the years then ended in conformity with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and generally accepted accountingprinciples in the Republic of China.
PricewaterhouseCoopers, Taiwan March 15, 2013
The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
140
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
DECEMBER 31(Expressed in thousands of New Taiwan dollars)
2012 2011ASSETS Notes AMOUNT % AMOUNT %
~3~
Current AssetsCash and cash equivalents 4(1) $ 4,352,233 9 $ 1,122,874 2Financial assets at fair value through profit or loss - current 4(2) and 6 260,236 1 352,661 1Notes receivable, net 3 and 4(3) 140,694 - 58,645 -Accounts receivable, net 3, 4(4) and 5 2,426,231 5 1,237,872 2Other receivables 3 and 4(21) 1,255,947 3 966,298 2Other financial assets - current 6 825,630 2 94,833 -Inventories, net 4(5) and 6 15,522,871 32 25,391,618 50Prepayments 668,937 1 349,791 1Deferred income tax assets - current 4(21) 20,239 - - -Other current assets 24,825 - 23,336 -
Total current assets 25,497,843 53 29,597,928 58Funds and Investments
Financial assets at fair value through profit or loss -non-current
4(2) and 676,593 - - -
Available-for-sale financial assets - non-current 4(6) and 6 1,581,087 3 1,017,055 2Financial assets carried at cost - non-current 4(7) and 6 965,951 2 1,034,854 2Long-term equity investments accounted for under the
equity method4(8) and 6
1,923,896 4 1,805,826 3Investments in real estate 4(9) and 6 271,118 1 271,118 -Other financial assets - non-current 6 1,138,343 2 826,051 2
Total funds and investments 5,956,988 12 4,954,904 9Property, Plant and Equipment, net 4(10) and 6
CostLand 2,775,597 6 2,780,311 6Buildings 4,233,465 9 3,379,320 7Machinery and equipment 12,008 - 15,344 -Computer and communication equipment 51,719 - 56,995 -Transportation equipment 29,115 - 17,232 -Office equipment 909,717 2 866,404 2Leased assets 71,848 - - -Property held for lease - Land 3,205,959 6 3,267,922 6Property held for lease - Buildings 6,629,884 14 6,662,160 13Leasehold improvements 47,000 - 47,000 -Other equipment 90,620 - 88,749 -
Cost and revaluation increments 18,056,932 37 17,181,437 34Less: Accumulated depreciation ( 1,925,736 )( 4 )( 1,493,769 )( 3 )Construction in progress and prepayments for equipment 7,277 - 540,458 1
Total property, plant and equipment, net 16,138,473 33 16,228,126 32Intangible Assets
Trademarks 1,072 - 1,366 -Patents - - 273 -Computer software costs 8,960 - 17,466 -Deferred pension costs 4(16) 3,776 - 5,667 -
Total intangible assets 13,808 - 24,772 -Other Assets
Refundable deposits 692,938 2 295,137 1Deferred income tax assets - non-current 4(21) 612 - - -Other assets - other 123,859 - 120,884 -
Total other assets 817,409 2 416,021 1TOTAL ASSETS $ 48,424,521 100 $ 51,221,751 100
(Continued)
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESNON-CONSOLIDATED BALANCE SHEETS
DECEMBER 31(Expressed in thousands of New Taiwan dollars)
Prince Housing & Development Corp . Annual Report 2012
141
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
DECEMBER 31(Expressed in thousands of New Taiwan dollars)
2012 2011LIABILITIES AND STOCKHOLDERS' EQUITY Notes AMOUNT % AMOUNT %
The accompanying notes are an integral part of these consolidated financial statements.See report of independent accountants dated March 15, 2013.
~4~
Current LiabilitiesShort-term loans 4(11) and 6 $ 4,360,000 9 $ 5,586,400 11
Notes and bills payable 4(12) and 6 1,952,887 4 1,880,177 4
Notes payable 209,390 - 425,005 1
Accounts payable 3,176,615 6 1,597,775 3
Income tax payable 4(21) 42,477 - 9,039 -
Accrued expenses 1,263,588 3 806,940 2
Other payables 52,720 - 119,030 -
Receipts in advance 4(13) 2,331,351 5 5,850,696 11
Long-term loans - current portion 4(15) and 6 3,777,505 8 4,068,868 8
Other current liabilities 90,330 - 86,917 -
Total current liabilities 17,256,863 35 20,430,847 40
Long-term LiabilitiesBonds payable 4(14) 2,000,000 4 - -
Long-term loans 4(15) and 6 10,171,369 21 13,617,609 27
Long-term notes payable 54,534 - - -
Long-term payables 796,845 2 796,845 1
Total long-term liabilities 13,022,748 27 14,414,454 28
ReservesLand value incremental reserve 495,328 1 495,328 1
Other LiabilitiesAccrued pension liabilities 4(16) 107,066 - 99,286 -
Guarantee deposits received 141,344 1 156,957 1
Other liabilities - other 67,226 - 65,991 -
Total other liabilities 315,636 1 322,234 1
TOTAL LIABILITIES 31,090,575 64 35,662,863 70
Stockholders' EquityCapital
Common stock 1 and 4(17) 11,944,765 24 10,858,877 21
Capital Reserves 4(18)Additional paid-in capital - treasury stock transactions 514,061 1 514,061 1
Capital reserve - others 7,232 - 7,232 -
Retained Earnings 4(17)(19)Legal reserve 843,650 2 612,237 1
Undistributed earnings 2,364,465 5 2,448,137 5
Other Adjustments to Stockholders' EquityCumulative translation adjustments ( 43,643 ) - ( 30,317 ) -
Unrecognized pension cost 4(16) ( 36,870 ) - ( 32,928 ) -
Unrealized gain or loss on financial instruments 4(6) 1,416,607 3 851,992 1
Treasury stock 4(20) ( 60,440 ) - ( 60,440 ) -
Total Parent Company Stockholders' Equity 16,949,827 35 15,168,851 29
Minority interest 384,119 1 390,037 1
TOTAL STOCKHOLDERS' EQUITY 17,333,946 36 15,558,888 30
Commitments and Contingent Liabilities 5 and 7TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY $ 48,424,521 100 $ 51,221,751 100
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESNON-CONSOLIDATED BALANCE SHEETS
DECEMBER 31(Expressed in thousands of New Taiwan dollars)
The accompanying notes are an integral part of these non-consolidated financial statements.See report of independent accountants dated March 15, 2013.
142
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars, except for earnings per share data)
2012 2011Notes AMOUNT % AMOUNT %
The accompanying notes are an integral part of these consolidated financial statements.See report of independent accountants dated March 15, 2013.
~5~
Operating Revenue 5Construction revenues $ 10,769,213 73 $ 10,785,238 74Other operating revenues 3,888,529 27 3,804,704 26
Total Operating Revenues 14,657,742 100 14,589,942 100
Operating Costs 4(23)Construction costs ( 7,979,496 )( 54 ) ( 7,427,954 )( 51 )Other operating costs ( 2,004,601 )( 14 ) ( 2,187,863 )( 15 )
Total Operating Costs ( 9,984,097 )( 68 ) ( 9,615,817 )( 66 )
Gross profit 4,673,645 32 4,974,125 34
Operating Expenses 4(23)Sales and marketing expenses ( 650,627 )( 4 ) ( 679,208 )( 4 )General and administrative expenses ( 2,133,168 )( 15 ) ( 1,717,141 )( 12 )
Total Operating Expenses ( 2,783,795 )( 19 ) ( 2,396,349 )( 16 )
Operating income 1,889,850 13 2,577,776 18
Non-operating Income and GainsInterest income 37,454 - 32,780 -Investment income accounted forunder the equity method
4(8)131,135 1 70,974 1
Dividend income 91,609 1 16,664 -Gain on valuation of financial assets 4(2) - - 26,447 -Other non-operating income 176,699 1 168,283 1
Total Non-operating Income andGains 436,897 3 315,148 2
Non-operating Expenses and LossesInterest expense 4(5) ( 468,104 )( 4 ) ( 502,568 )( 4 )Loss on disposal of property, plantand equipment ( 4,708 ) - ( 83,714 )( 1 )
Impairment loss 4(7) ( 330 ) - ( 5,581 ) -Loss on valuation of financial assets 4(2) ( 14,426 ) - - -Other non-operating losses ( 20,615 ) - ( 37,492 ) -
Total Non-operating Expensesand Losses ( 508,183 )( 4 ) ( 629,355 )( 5 )
Income before income tax 1,818,564 12 2,263,569 15Income tax expense 4(21) ( 42,719 ) - ( 19,294 ) -
Consolidated net income $ 1,775,845 12 $ 2,244,275 15
Attributable to:Equity holders of the Company $ 1,785,930 12 $ 2,314,131 16Minority interest ( 10,085 ) - ( 69,856 )( 1 )
$ 1,775,845 12 $ 2,244,275 15
Before Tax After Tax Before Tax After TaxBasic Earnings Per Share (in dollars) 4(22)
Net income (loss) $ 1.58 $ 1.54 $ 2.01 $ 2.00
Diluted Earnings Per Share (indollars)
4(22)
Net income $ 1.57 $ 1.54 $ 2.01 $ 1.99
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars, except for earnings per share data)
The accompanying notes are an integral part of these non-consolidated financial statements.See report of independent accountants dated March 15, 2013.
Prince Housing & Development Corp . Annual Report 2012
143
PRIN
CE
HO
USI
NG
& D
EVEL
OPM
ENT
CO
RP.
AN
D S
UB
SID
IAR
IES
CO
NSO
LID
ATED
STA
TEM
ENTS
OF
CH
AN
GES
IN S
TOC
KH
OLD
ERS’
EQ
UIT
YFO
R T
HE
YEA
RS
END
ED D
ECEM
BER
31,
201
2 A
ND
201
1(E
xpre
ssed
in th
ousa
nds
of N
ew T
aiw
an d
olla
rs)
Not
e: T
he e
mpl
oyee
s' bo
nuse
s w
ere
$38.
355
and
$41,
654
and
dire
ctor
s' an
d su
perv
isor
s' re
mm
uner
atio
n w
ere
$57,
532
and
$62,
482
in 2
011
and
2010
, res
pect
ivel
y, w
hich
hav
e be
en d
educ
ted
from
the
stat
emen
t of i
ncom
e .
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
se n
on-c
onso
lidat
ed fi
nanc
ial s
tate
men
ts.
See
repo
rt of
inde
pend
ent a
ccou
ntan
ts d
ated
Mar
ch 1
5, 2
013.
PRIN
CEH
OU
SIN
G&
DEV
ELO
PMEN
TCO
RP.A
ND
SUBS
IDIA
RIES
CON
SOLI
DAT
EDST
ATEM
ENTS
OF
CHA
NG
ESIN
STO
CK
HO
LDER
S’EQ
UIT
YFO
RTH
EY
EARS
END
EDD
ECEM
BER
31,2
012
AN
D20
11(E
xpre
ssed
inth
ousa
ndso
fNew
Taiw
ando
llars
)
Capi
talr
eser
ves
Reta
ined
earn
ings
Oth
erad
just
men
tsto
stock
hold
ers’
equi
ty
Com
mon
stock
Add
ition
alpa
id-in
capi
tal-
treas
ury
stock
trans
actio
nsCa
pita
lres
erve
-oth
ers
Lega
lres
erve
Und
istrib
uted
earn
ings
Cum
ulat
ive
trans
latio
nad
just
men
tsU
nrec
ogni
zed
pens
ion
cost
Unr
ealiz
edga
inor
loss
onfin
anci
alin
stru
men
tsTr
easu
rysto
ckM
inor
ityin
tere
stTo
tal
Not
e:Th
eem
ploy
ees'
bonu
sesw
ere
$38.
355
and
$41,
654
and
dire
ctor
s'an
dsu
perv
isors
'rem
mun
erat
ion
wer
e$5
7,53
2an
d$6
2,48
2in
2011
and
2010
,res
pect
ivel
y,w
hich
have
been
dedu
cted
from
the
state
men
tofi
ncom
e.
The
acco
mpa
nyin
gno
tesa
rean
inte
gral
part
ofth
ese
cons
olid
ated
finan
cial
state
men
ts.Se
ere
port
ofin
depe
nden
tacc
ount
ants
date
dM
arch
15,2
013.
~6~
2011 Ba
lanc
eat
Janu
ary
1,20
11$
9,962,27
2$
514,061
$7,232
$399,155
$2,140,29
8($
44,451
)($
32,842
)$
111,427
($60,440
)$
443,922
$13,440,6
34
Dist
ribut
ion
of20
10ne
tinc
ome
(Not
e):
Lega
lres
erve
--
-213,082
(213,082)
--
--
--
Cash
divi
dend
s-
--
-(
896,605)
--
--
-(
896,605)
Stoc
kdi
vide
nds
896,605
--
-(
896,605)
--
--
--
Cons
olid
ated
neti
ncom
efo
r201
1-
--
-2,314,13
1-
--
-(
69,856
)2,244,27
5
Cum
ulat
ive
trans
latio
nad
just
men
ts-
--
--
14,134
--
--
14,134
Unr
ecog
nize
dpe
nsio
nco
st-
--
--
-(
86)
--
-(
86)
Unr
ealiz
edga
inon
finan
cial
inst
rum
ents
--
--
--
-740,565
--
740,565
Min
ority
inte
rest
--
--
--
--
-15,971
15,971
Bala
nce
atD
ecem
ber3
1,20
11$10,858,8
77$
514,061
$7,232
$612,237
$2,448,13
7($
30,317
)($
32,928
)$
851,992
($60,440
)$
390,037
$15,558,8
88
2012 Ba
lanc
eat
Janu
ary
1,20
12$10,858,8
77$
514,061
$7,232
$612,237
$2,448,13
7($
30,317
)($
32,928
)$
851,992
($60,440
)$
390,037
$15,558,8
88
Dist
ribut
ion
of20
11ne
tinc
ome
(Not
e):
Lega
lres
erve
--
-231,413
(231,413)
--
--
--
Cash
divi
dend
s-
--
-(
542,944)
--
--
-(
542,944)
Stoc
kdi
vide
nds
1,085,88
8-
--
(1,085,88
8)
--
--
--
Adi
ustm
ento
fret
aine
dea
rnin
gsdu
eto
chan
gein
owne
rshi
pof
subs
idia
ries
--
--
(9,357)
--
--
-(
9,357)
Cons
olid
ated
neti
ncom
efo
r201
2-
--
-1,785,93
0-
--
-(
10,085
)1,775,84
5
Cum
ulat
ive
trans
latio
nad
just
men
ts-
--
--
(13,326
)-
--
-(
13,326
)
Unr
ecog
nize
dpe
nsio
nco
st-
--
--
-(
3,942)
--
-(
3,942)
Unr
ealiz
edga
inon
finan
cial
inst
rum
ents
--
--
--
-564,615
--
564,615
Min
ority
inte
rest
--
--
--
--
-4,167
4,167
Bala
nce
atD
ecem
ber3
1,20
12$11,944,7
65$
514,061
$7,232
$843,650
$2,364,46
5($
43,643
)($
36,870
)$
1,416,60
7($
60,440
)$
384,119
$17,333,9
46
144
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
2012 2011
~7~
CASH FLOWS FROM OPERATING ACTIVITIESConsolidated net income $ 1,775,845 $ 2,244,275
Adjustments to reconcile consolidated net income to net cashprovided by (used in) operating activitiesLoss (gain) on valuation of financial assets 14,426 ( 26,447 )Provision for doubtful accounts 103 -Transfer of allowance for doubtful accounts to other
non-operating income - ( 21,167 )Provision for (reversal of) inventory obsolescence and value
decline ( 28,252 ) 34,054Impairment loss on financial assets carried at cost 330 5,581Investment income accounted for under the equity method ( 131,135 ) ( 70,974 )Gain on disposal of investments - ( 3,444 )Depreciation 457,684 459,923Loss on disposal of property, plant and equipment 4,708 83,714Transfer of property, plant and equipment to other
non-opreating losses 4,421 11,877Amortization 9,000 8,954Changes in assets and liabilities
Financial assets at fair value through profit or loss - current 76,027 ( 69,397 )Notes receivable ( 82,049 ) 35,366Accounts receivable ( 1,188,462 ) ( 72,983 )Other receivables ( 289,649 ) ( 335,594 )Inventories 9,978,055 ( 5,453,346 )Prepayments ( 319,146 ) 235,864Other current assets ( 1,489 ) 26,322Deferred income tax assets ( 20,851 ) -Financial assets at fair value through profit or loss -
non-current ( 76,027 ) -Deferred pension costs 1,891 -Notes payable ( 215,615 ) 92,089Accounts payable 1,578,840 ( 165,567 )Income tax payable 33,438 9,039Accrued expenses 456,648 158,039Other payables ( 66,310 ) 9,879Receipts in advance ( 3,519,345 ) 1,598,696Other current liabilities 3,413 15,017Accrued pension liabilities 3,838 ( 5,280 )Other liabilities - other 1,235 ( 2,278 )
Net cash provided by (used in) operating activities 8,461,572 ( 1,197,788 )
(Continued)
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
Prince Housing & Development Corp . Annual Report 2012
145
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
2012 2011
The accompanying notes are an integral part of these consolidated financial statements.See report of independent accountants dated March 15, 2013.
~8~
CASH FLOWS FROM INVESTING ACTIVITIESIncrease in other financial assets - current ($ 730,797 ) ($ 94,833 )
Decrease in available-for-sale financial assets - non-current 583 382
Increase in financial assets carried at cost - non-current - ( 1,600 )
Proceeds from capital reduction of financial assets carried at cost 67,529 7,244
Increase in other financial assets - non-current ( 312,292 ) ( 268,965 )
Acquisition of property, plant and equipment ( 508,195 ) ( 1,053,447 )
Proceeds from disposal of property, plant and equipment 40,628 1,267
Increase in refundable deposits ( 397,801 ) ( 153,687 )
Increase in other assets - other ( 2,902 ) ( 29,306 )
Net cash used in investing activities ( 1,843,247 ) ( 1,592,945 )
CASH FLOWS FROM FINANCING ACTIVITIES(Decrease) increase in short-term loans ( 1,226,400 ) 540,108
Increase in notes and bills payable 72,710 744,600
Increase in bond payable 2,000,000 -
(Decrease) increase in long-term loans ( 3,737,603 ) 2,151,284
Increase in long-term notes payable 54,534 -
(Decrease) increase in guarantee deposits ( 15,613 ) 34,624
Payment of cash dividends ( 542,944 ) ( 896,605 )
Increase in minority interest 4,167 15,971
Net cash (used in) provided by financing activities ( 3,391,149 ) 2,589,982
Effect of foreign exchange rate changes on cash 2,183 2,058
Increase (decrease) in cash and cash equivalents 3,229,359 ( 198,693 )
Cash and cash equivalents at beginning of year 1,122,874 1,321,567
Cash and cash equivalents at end of year $ 4,352,233 $ 1,122,874
Supplemental disclosures of cash flow information1.Interest paid $ 684,214 $ 591,489
Interest capitalized ( 152,134 ) ( 91,210 )
Interest paid (excluding capitalized interest) $ 532,080 $ 500,279
2.Income tax paid $ 30,132 $ 10,255
Non-cash flows from investing and financing activities1.Property, plant and equipment transferred from prepayments for
building and land $ - $ 619,605
2.Buildings and land held for sale transferred from property heldfor lease and property, plant and equipment $ 90,407 $ 388,137
3.Financial assets carried at cost - non-current transferred toavailable-for-sale financial assets - non-current $ - $ 84,780
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of New Taiwan dollars)
146
~9~
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)
1. HISTORY AND ORGANIZATIONPrince Housing & Development Corp. (the “Company”) was incorporated as a company limited byshares under the provisions of the Company Law of the Republic of China (R.O.C.) in September 1973.As of December 31, 2012, the Company’s authorized capital was $16,000,000 and the paid-in capitalwas $11,944,765 , consisting of 1,194,476 thousand shares of common stock with a par value of $10(in NT dollars) per share. The Company is primarily engaged in the construction, leasing and sale ofpublic housing, commercial building, tourism/recreation place (children’s playground, water park, etc.)and parking lot/parking tower, and leasing and sale of real estate. The common shares of the Companyhave been listed on the Taiwan Stock Exchange since April 1991. As of December 31, 2012 and 2011,the Company had 2,775 and 2,732 employees, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accompanying consolidated financial statements of the Company and its subsidiaries (collectivelyreferred herein as the “Group”) are prepared in accordance with the “Rules Governing the Preparationof Financial Statements by Securities Issuers” and generally accepted accounting principles in theRepublic of China. The Group’s significant accounting policies are as follows:(1) Principles of consolidation
A. All majority-owned subsidiaries or controlled entities, which the Company owns less than 50% ofthe voting rights of the investee companies directly or indirectly, are included in the consolidatedfinancial statements. The income (loss) of the subsidiaries is included in the consolidated statementof income effective on the date the Company gains control over the subsidiaries. The income (loss)of the subsidiaries is excluded from the consolidated statement of income effective the date on whichthe Company loses control over the subsidiaries. Significant intercompany transactions and assetsand liabilities arising from intercompany transactions are eliminated.
B. Subsidiaries included in the consolidated financial statements and their changes in 2011:
Investor Subsidiary Main activities 2012 2011 NotePrince Housing &Development Corp.
Ta-Chen Construction & Engineering Corp. Construction - 100.00 5
Prince Utility Co., Ltd. Electricity and water pipemaintenance
- 100.00 5
Prince Property Management Consulting Co.,Ltd.(formerly Prince Real Estate Agent Co.,Ltd.)
Real estate managers 100.00 100.00 6
Ownership(%)December 31,
PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,EXCEPTAS OTHERWISE INDICATED)
1. HISTORY AND ORGANIZATION
Prince Housing & Development Corp. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.) in September 1973. As of December 31, 2012, the Company’s authorized capital was $16,000,000 and the paid-in capital was $11,944,765, consisting of 1,194,476 thousand shares of common stock with a par value of $10 (in NT dollars) per share. The Company is primarily engaged in the construction, leasing and sale of public housing, commercial building, tourism/recreation place (children’s playground, water park, etc.) and parking lot/parking tower, and leasing and sale of real estate. The common shares of the Company have been listed on the Taiwan Stock Exchange since April 1991. As of December 31, 2012 and 2011, the Company had 2,775 and 2,732 employees, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements of the Company and its subsidiaries (collectively referred herein as the “Group”) are prepared in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and generally accepted accounting principles in the Republic of China. The Group’s significant accounting policies are as follows:(1) Foreign currency transactions A. All majority-owned subsidiaries or controlled entities, which the Company owns less than 50% of
the voting rights of the investee companies directly or indirectly, are included in the consolidated financial statements. The income (loss) of the subsidiaries is included in the consolidated statement of income effective on the date the Company gains control over the subsidiaries. The income (loss) of the subsidiaries is excluded from the consolidated statement of income effective the date on which the Company loses control over the subsidiaries. Significant intercompany transactions and assets and liabilities arising from intercompany transactions are eliminated.
B. Subsidiaries included in the consolidated financial statements and their changes in 2011:
Prince Housing & Development Corp . Annual Report 2012
147
~10~
Note 1: The Company does not directly or indirectly own 50% above of voting shares of TheSplendor Hotel Taichung and Splendor Assets Management Co., Ltd. However, as theCompany has control over the finance and operations of the two companies, they areincluded in the consolidated financial statements.
Note 2:As of December 31, 2011, Prince Apartment Management Maintain Co., Ltd. and PrinceSecurity Co., Ltd. own 50% of voting shares of Prince Property Management Co., Ltd.,respectively.
Investor Subsidiary Main activities 2012 2011 NotePrince Housing & Development
Corp.Prince Real Estate Appraisal Co., Ltd. Real estate appraisal - 83.33 6
Cheng-Shi Investment Holdings Co., Ltd. General investments 100.00 - 7
Prince Apartment Management MaintainCo., Ltd.,
Management of apartment - 100.00 8
Prince Housing Investment Co., Ltd Overseas investment 100.00 100.00
Prince Biotechnology Co., Ltd. Research and development ofbiological preparation
100.00 100.00 3
BioSun Technology Co., Ltd. Anti-mildew's import andexport
100.00 100.00
Prince Ta-Chen Investment Co., Ltd. General investments 99.97 99.97
Dong-Feng Enterprises Co., Ltd. Housebuilders and sales 100.00 100.00
Prince Security Co., Ltd. Security - 100.00 4、8
Cheng-Shi Construction Co., Ltd. Construction - 100.00 5
The Splendor Hotel Taichung Hotels and catering 50.00 50.00 1
Time Square International Co., Ltd. Hotels and catering 100.00 100.00
Jin-Yi-Xing Plywood Co., Ltd. Manufacture of plywood 99.65 99.65
Early Success Investments Ltd. Overseas investment 100.00 100.00
Prince Assets Management LLC. Overseas investment 100.00 87.60
Splendor Assets Management Co., Ltd. Management consulting 50.00 50.00 1
Ta-Chen Construction& Engineering Corp.
Prince Entertainment Co., Ltd. Management of entertainment - 98.00 6
Ta-Chen International (Brunei) Corp. Overseas investment 100.00 100.00
Cheng-Shi Investment HoldingsCo., Ltd.
Ta-Chen Construction & EngineeringCorp.
Construction 100.00 - 5
Prince Utility Co., Ltd. Electricity and water pipemaintenance
100.00 - 5
Cheng-Shi Construction Co., Ltd. Construction 100.00 - 5
Prince Property ManagementConsulting Co., Ltd.(formerlyPrince Real Estate AgentCo., Ltd.)
Prince Apartment ManagementMaintain Co., Ltd.,
Management of apartment 100.00 - 8
Prince Security Co., Ltd. Security 100.00 - 4、8
Prince Ta-Chen InvestmentCo., Ltd.
Prince Capital Inc. Overseas investment 100.00 100.00
Prince Capital Inc. Prince Ventures USA Inc. Overseas investment 100.00 100.00
Prince Apartment ManagementMaintain Co., Ltd.,
Prince Property Management Co., Ltd. Development of publichousing and building and
- 100.00 2、6
Ta-Chen International(Brunei)Corp.
Ta Chen Construction & Engineering(Vietnam) Corp.
Construction 100.00 100.00
Ownership(%)December 31,
Note 1: The Company does not directly or indirectly own 50% above of voting shares of The Splendor Hotel Taichung and Splendor Assets Management Co., Ltd. However, as the Company has control over the finance and operations of the two companies, they are included in the consolidated financial statements.
Note 2: As of December 31, 2011, Prince Apartment Management Maintain Co., Ltd. and Prince Security Co., Ltd. own 50% of voting shares of Prince Property Management Co., Ltd., respectively.
Note 3:`As of December 31, 2012 and 2011, the Company, Ta-Chen Construction & Engineering Corp., Prince Utility Co., Ltd., Prince PropertyManagement Consulting
148
Co., Ltd. ( formerly Prince Real Estate Agent Co., Ltd.), Prince Real Estate Appraisal Co., Ltd., Prince Apartment Management Maintain Co., Ltd. and Prince Entertainment Co., Ltd. owned 50%, 45%, 1%, 3%, 0%, 1%, 0% and 50%, 45%, 1%, 1%, 1%, 1%, 1% of voting shares of Prince Biotechnology Co., Ltd., respectively.
Note 4: As of December 31, 2011, the Company, Ta-Chen Construction & Engineering Corp., Prince Utility Co., Ltd., Prince Property Management Consulting Co., Ltd. (formerly Prince Real Estate Agent Co., Ltd.) Prince Real Estate Appraisal Co., Ltd., Prince Apartment Management Maintain Co., Ltd., Prince Entertainment Co., Ltd. owned 25%, 25%, 12%, 1%, 2%, 25% and 10% of voting shares of Prince Security Co., Ltd.
Note 5: Due to the investment structure adjustments in the Group, Ta-Chen Construction & Engineering Corp., Cheng-Shi Construction Co., Ltd. and Prince Utility Co., Ltd. became the consolidated entities of Cheng-Shi Investment Holdings Co., Ltd.
Note 6: Due to the investment structure adjustments in the Group, Prince Real Estate Agent Co., Ltd. as the surviving company merged with Prince Real Estate Appraisal Co., Ltd., Prince Entertainment Co., Ltd. and Prince Property Management Co., Ltd., and was renamed Prince Property Management Consulting Co., Ltd.
Note 7: Newly incorporated in the fourth quarter, 2011.Note 8: Due to the investment structure adjustments in the Group, Prince Apartment Management
Maintain Co., Ltd. and Prince Security Co., Ltd. became the consolidated entities of Prince PropertyManagement Consulting Co., Ltd.
C. Subsidiaries not included in the consolidated financial statementsNone.
D. Adjustments for subsidiaries with different balance sheet datesNone.
E. Special operating risk of foreign subsidiariesNone.
F. Nature and extent of the restrictions on fund remittance from subsidiaries to the parent companyNone.
G Contents of subsidiaries' securities issued by the parent companyAs of December 31, 2012 and 2011, the total number of the Company’s shares held by its subsidiaries, Ta-Chen Construction & Engineering Corp. and Prince Apartment Management Maintain Co., Ltd., was 35,014 thousand shares and 31,831 thousand shares with an average book value of $1.73 and $1.90 (in dollars), respectively. These shares have been included in the Company’s treasury stock.
H Information on convertible bonds and common stock issued by subsidiaries(a) Subsidiary, Cheng-Shi Construction Co., Ltd. made capital increase by cash amounting to
$40,000, as resolved by the Board of Directors in April, 2012.(b) Subsidiary, Prince Property Management Consulting Co., Ltd. (formerly Prince Real Estate
Agent Co., Ltd.) made capital increase by cash amounting to $130,000, as resolved by the Board of Directors in August, 2012.
(2) Foreign currency transactions Assets and liabilities of foreign subsidiaries are translated into New Taiwan dollars using the exchange rates at the balance sheet date. Equity accounts are translated at historical rates except for beginning retained earnings, which are carried forward from prior year’s balance. Dividends
Prince Housing & Development Corp . Annual Report 2012
149
are translated at the rates prevailing at the date of declaration. Profit and loss accounts are translated at weighted-average rates of the year. The resulting translation differences are includedin “cumulative translation adjustments” under stockholders’ equity.
(3) Foreign currency transactionsA. Transactions denominated in foreign currencies are translated into functional currency at the
spot exchange rates prevailing at the transaction dates. Exchange gains or losses due to the difference between the exchange rate on the transaction date and the exchange rate on the date of actual receipt and payment are recognized in current year’s profit or loss.
B. Receivables, other monetary assets and liabilities denominated in foreign currencies are translated at the spot exchange rates prevailing at the balance sheet date. Exchange gains or losses are recognized in profit or loss.
C. When a gain or loss on a non-monetary item is recognized directly in equity, any exchange component of that gain or loss shall be recognized directly in equity. Conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss shall be recognized in profit or loss. However, non-monetary items that are measured on a historical cost basis are translated using the exchange rate at the date of the transaction.
(4) Classification of current and non-current itemsA. If assets and liabilities are related to the construction business, they are classified as current
or non-current according to their operating cycle; if they are not related to the construction business, they are classified by annual basis.
B. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:(a) Assets arising from operating activities that are expected to be realized or consumed, or
are intended to be sold within the normal operating cycle;(b) Assets held mainly for trading purposes;(c) Assets that are expected to be realized within twelve months from the balance sheet date;(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those
that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.
C. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:(a) Liabilities arising from operating activities that are expected to be paid off within the
normal operating cycle;(b) Liabilities arising mainly from trading activities;(c) Liabilities that are to be paid off within twelve months from the balance sheet date;(d) Liabilities for which the repayment date cannot be extended unconditionally to more than
twelve months after the balance sheet date.(5) Cash and cash equivalents
A. Cash and cash equivalents include cash on hand and in banks and other short-term highly liquid investments which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value resulting from fluctuations in interest rate.
B. The Group’s statement of cash flows is prepared on the basis of cash and cash equivalents.(6) Financial assets and financial liabilities at fair value through profit or loss
150
A. Financial assets and financial liabilities at fair value through profit or loss are recognized and derecognized using settlement date accounting and are recognized initially at fair value.
B. These financial instruments are subsequently remeasured and stated at fair value, and the gain or loss is recognized in profit or loss. The fair value of listed stocks, OTC stocks and closed-end mutual funds is based on latest quoted fair prices of the accounting period. The fair value of open-end and balanced mutual funds is based on the net asset value at the balance sheet date.
C. When a derivative is an ineffective hedging instrument, it is initially recognized at fair value on the date a derivative contract is entered into and is subsequently remeasured at its fair value. If a derivative is a non-option derivative, the fair value initially recognized is zero.
D. Financial assets and financial liabilities at fair value through profit and loss are classified into asset or liability held for trading and those designated at fair value through profit or loss at inception. Financial assets and financial liabilities are classified as held for trading if acquired principally for the purpose of selling in the short term. Financial assets and financial liabilities designated as at fair value through profit or loss at inception are those that are managed and whose performance is evaluated on a fair value basis, in accordance with a documented Company’s investment strategy. Information about these financial assets and financial liabilities are provided internally on a fair value basis to the Company’s management. The Company’s investment strategy is to invest free cash resources in equity securities or convertible bonds as part of the Company’s long-term capital growth strategy. The Company has designated almost all of its compound debt instruments as financial liability at fair value through profit and loss.
(7) Available-for-sale financial assetsA. Available-for-sale financial assets in equity and debt are recognized and derecognized using
trade date accounting and settlement date accounting, respectively, and are initially stated at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
B. The financial assets are remeasured and stated at fair value, and the gain or loss is recognized in equity, until the financial asset is derecognized, at which time the cumulative gain or loss previously recognized in equity shall be recognized in profit or loss. The fair value of listed stocks, OTC stocks and closed-end mutual funds are based on latest quoted fair prices of the accounting period. The fair values of open-end and balanced mutual funds are based on the net asset value at the balance sheet date.
C. If there is any objective evidence that the financial asset is impaired, the cumulative loss that had been recognized directly in equity shall be transferred from equity to profit or loss. When the fair value of an equity instrument subsequently increases, impairment losses recognized previously in profit or loss shall not be reversed. When the fair value of a debt instrument subsequently increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss shall be reversed to the extent of the loss recognized in profit or loss.
(8) Financial assets carried at costA. Investment in unquoted equity instruments is recognized or derecognized using trade date
accounting and is stated initially at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
B. The investments in equity instruments, including unlisted stocks and emerging stocks, are
Prince Housing & Development Corp . Annual Report 2012
151
measured at cost since their fair value cannot be measured reliably.C. If there is any objective evidence that the financial asset is impaired, the impairment loss is
recognized in profit or loss. Such impairment loss shall not be reversed when the fair value of the asset subsequently increases.
(9) Notes, accounts and other receivablesA. Notes and accounts receivable are claims resulting from the sale of goods or services.
Receivables arising from transactions other than the sale of goods or services are classified as other receivables. Notes, accounts and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
B. The Group assesses at each balance sheet date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. If such evidence exists, a provision for impairment of financial asset is recognized. The amount of impairment loss is determined based on the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the fair value of the asset subsequently increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss shall be reversed to the extent of the loss previously recognized in profit or loss. Such recovery of impairment loss shall not result to the asset’s carrying amount greater than its amortized cost where no impairment loss was recognized. Subsequent recoveries of amounts previously written off are recognized in profit or loss.
(10) InventoriesThe inventories include “land held for construction”, “construction in progress”, “buildings and land held for sale”. Gains or losses occurring from construction contracts are recognized using the percentage of completion method. Inventories are stated at cost and evaluated at the lower of cost or net realizable value at the end period. The individual item approach is used in the comparison of cost and net realizable value. The calculation of net realizable value is based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses. The interest costs related to construction in progress are capitalized during the construction.
(11) Accounting for constructionA. Effective January 1, 2009, for the ‘off plan’ housing projects where the Company engages the
construction firm to construct, the profit or loss of the ‘off plan’ housing projects is recognized on a percentage-of-completion basis if the projects meet the criteria of the percentage-of-completion method recognition; for other projects of the ‘off plan’ housing projects, the costs and profit or loss of the projects are recognized using the completed-contract method when the ownership of the houses are transferred and the houses are handed over, or when the houses are handed over before the balance sheet date (or when the ownership of the houses are transferred before the balance sheet date), but the ownership of the houses are transferred subsequently after the balance sheet date (but the houses are handed over subsequently after the balance sheet date).
B. For the costs associated with the acquisition of the assets to be allocated over the period when the underlying assets will produce economic benefit to meet the revenue-cost (expense) matching principle, effective January 1, 2001, the Company capitalized interest incurred in
152
accordance with ROC SFAS No. 3, “Borrowing Cost”.C. The construction-use land refers to the land that is under construction or under planning to be
constructed. Such land is stated at the acquisition costs, including the purchase proceeds of the land and all necessary costs to acquire the land.
D. The selling expenses incurred on the ‘off plan’ housing sale are recognized initially as “deferred selling expenses”, and are reclassified to “operating expenses” when revenue is recognized after the construction of houses is completed.
E. At the end of year, inventories are evaluated at the lower of cost or net realizable value, and the individual item approach is used in the comparison of cost and net realizable value. The calculation of net realizable value is based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses.
(12) Long-term equity investments accounted for under the equity methodA. Long-term equity investments in which the Company holds more than 20% of the investee
Company’s voting shares or has the ability to exercise significant influence on the investee’s operational decisions are accounted for under the equity method.
B. Effective January 1, 2005, investment loss on the non-controlled entities over which the Group has the ability to exercise significant influence is recognized to the extent that the amount of long-term investments in such investees is written down to zero. However, if the Group continues to provide endorsements, guarantees or financial support for such investees, the investment loss is recognized continuously in proportion to the Group’s equity interest in such investees. In the case of controlled entities, the Group recognizes all the losses incurred by such entities that will not be covered by other stockholders. When the operations of such investees become profitable, the Group recognizes the profits until the amount of losses previously recognized by the Group is fully recovered.
C. Exchange differences arising from translation of the financial statements of overseas investee companies accounted for under the equity method are recorded as “cumulative translation adjustments” under stockholders’ equity.
D. Long-term equity investments in which the Company hold more than 50% of the investee Company’s voting shares or has the ability to control the investee’s operational decision, in accordance with Statement of Financial Accounting Standards (SFAS) No. 7, “Consolidated Financial Statements”, are accounted for under the equity method and included in the quarterly consolidated financial statements.
(13) Property, plant and equipmentA. Property, plant and equipment are stated at cost. Interests incurred on the loans used to bring
the assets to the condition and location necessary for their intended uses are capitalized.B. Depreciation is provided under the straight-line method based on the assets’ estimated
economic service lives. The estimated economic service lives of property, plant and equipment are 44~60 year for property held for lease-buildings, 50~60 years for buildings, and 5~15 years for other property, plant and equipment.
C. Major improvements and renewals are capitalized and depreciated accordingly. Maintenance and repairs are expensed as incurred.
D. When an asset is sold or retired, the cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss on disposal is recorded as non-operating income or expense.
Prince Housing & Development Corp . Annual Report 2012
153
(14) Deferred assetsDeferred assets are stated at cost and are amortized on a straight-line basis over 5 years.
(15) Impairment of non-financial assetsThe Group recognizes impairment loss when there is indication that the recoverable amount of an asset is less than its carrying amount. The recoverable amount is the higher of the fair value less costs to sell and value in use. The fair value less costs to sell is the amount obtainable from the sale of the asset in an arm’s length transaction after deducting any direct incremental disposal costs. The value in use is the present value of estimated future cash flows to be derived from continuing use of the asset and from its disposal at the end of its useful life. When the impairment no longer exists, the impairment loss recognized in prior years shall be recovered.
(16) Pension planUnder the defined benefit pension plan, net periodic pension costs are recognized in accordance with the actuarial calculations. Net periodic pension costs include service cost, interest cost, expected return on plan assets, and amortization of unrecognized net transition obligation and gains or losses on plan assets. Under the defined contribution pension plan, net periodic pension costs are recognized as incurred.
(17) Income taxA. Provision for income tax includes deferred income tax resulting from temporary differences,
investment tax credits and loss carryforward. Valuation allowance on deferred tax assets is provided to the extent that it is more likely than not that the tax benefit will not be realized. Over or under provision of prior years’ income tax liabilities is included in current year’s income tax. When a change in the tax laws is enacted, the deferred tax liability or asset is recomputed accordingly in the period of change. The difference between the new amount and the original amount, that is, the effect of changes in the deferred tax liability or asset, is recognized as an adjustment to current income tax expense (benefit).
B. Adjustments of prior years' income tax liabilities are included in the current year's income tax expense.
C. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
D. If the amount of regular income tax is more than or equal to the amount of basic tax, the income tax payable shall be calculated in accordance with the Income Tax Act and other relevant laws. Whereas if the amount of regular income tax is less than the amount of basic tax, the income tax payable shall also include the difference between the amount of regular income tax and basic tax, in addition to the amount as calculated in accordance with the “Income Tax Act” and other relevant laws. The balance calculated in accordance with the provisions shall not allow for deductions claimed in regard to investment tax credits granted under the provisions of other laws.
E. The income tax of subsidiaries reflected in the consolidated financial statements is in accordance with the local relevant laws and regulations.
(18) Treasury stockA. When the Company acquires its issued and outstanding shares as treasury stocks, the book
value of those treasury stocks is computed respectively on a weighted-average basis according to the type of shares (common shares) and the reason for reacquisition. Treasury stock transactions should be dealt with in the following ways:
154
(a) Reacquisition: if the shares are purchased, they are stated at the acquisition cost; if the shares are donated, they are stated at fair value.
(b) Disposal: when treasury stocks are sold, if the selling price is above the book value, the difference should be credited to the capital surplus-from treasury stock transactions account. If the selling price is below the book value, the difference should first be offset against capital surplus from the same class of treasury stock transactions, and the remainder, if any, debited to retained earnings.
(c) Write off: when a Company’s treasury stock is retired, the treasury stock account should be credited, and the capital surplus-premium on stock account and capital stock account should be debited proportionately according to the share ratio. Any excess of the carrying value of treasury stock over the sum of its par value and premium on stock should first be offset against capital surplus from the same class of treasury stock transactions, and the remainder, if any, debited to retained earnings. Any excess of the sum of the par value and premium on stock of treasury stock over its carrying value should be credited to capital surplus from the same class of treasury stock transactions.
B. The Company adopted the Statement of Financial Accounting Standards No. 30, “Accounting for Treasury Stocks” since January 1, 2002, which requires the Company’s stock held by subsidiaries should be treated as treasury stock when the Company recognizes investment income or loss and prepares financial statements.
(19) Employees’ bonuses and directors’ and supervisors’ remunerationEffective January 1, 2008, pursuant to EITF 96-052 of the Accounting Research and Development Foundation, R.O.C., dated March 16, 2007, “Accounting for Employees’ Bonuses and Directors’ and Supervisors’ Remuneration”, the costs of employees’ bonuses and directors’ and supervisors’ remuneration are accounted for as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and the amounts can be estimated reasonably. However, if the accrued amounts for employees’ bonuses and directors’ and supervisors’ remuneration are significantly different from the actual distributed amounts resolved by the stockholders at their annual stockholders’ meeting subsequently, the differences shall be recognized as gain or loss in the following year. In addition, according to EITF 97-127 of the Accounting Research and Development Foundation, R.O.C., dated March 31, 2008, “Criteria for Listed Companies in Calculating the Number of Shares of Employees’ Stock Bonus”, the Company calculates the number of shares of employees’ stock bonus based on the closing price of the Company’s common stock at the previous day of the stockholders’ meeting held in the year following the financial reporting year, and after taking into account the effects of ex-rights and ex-dividends.
(20) Use of estimatesThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from those assumptions and estimates.
(21) Operating segmentsOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for
Prince Housing & Development Corp . Annual Report 2012
155
~20~
4. DETAILS OF SIGNIFICANT ACCOUNTS(1). Cash and cash equivalents
(2). Financial assets at fair value through profit or loss
1.The Group recognized net (loss) gain of ($14,426) and $26,447 for the years ended December 31,2012 and 2011, respectively.
2. For details of pledged assets, please refer to Note 6.(3). Notes receivable
2012 2011Cash:
Cash on hand 12,706$ 9,495$Checking accounts 2,412,193 352,637Savings deposits 1,649,391 692,195Time deposits 21,943 3,547
4,096,233 1,057,874Cash equivalents:
Repurchase of bonds 256,000 65,0004,352,233$ 1,122,874$
December 31,
2012 2011Current items:
Financial assets held for tradingListed (TSE and OTC) stocks 263,029$ 264,955$Mutual funds 17,665 93,778
280,694 358,733Valuation adjustments 20,458)( 6,072)(
260,236$ 352,661$Non-Current items:
Financial assets held for tradingMutual funds 76,000$ -$Valuation adjustments 593 -
76,593$ -$
December 31,
2012 2011
Notes receivable 144,397$ 62,348$Less: Allowance for doubtful accounts 3,703)( 3,703)(
140,694$ 58,645$
December 31,
allocating resources and assessing performance of the operating segments. In accordance with R.O.C. SFAS No. 41, “Operating Segments”, segment information is disclosed in the consolidated financial statements rather than in the separate financial statements of the Company.
(22) Settlement date accountingIf an entity recognizes financial assets using settlement date accounting, any change in the fair value of the asset to be received during the period between the trade date and the settlement date is not recognized for assets carried at cost or amortized cost. For financial assets or financial liabilities classified as at fair value through profit or loss, the change in fair value is recognized in profit or loss. For available-for-sale financial assets, the change in fair value is recognized directly in equity.
3. CHANGES IN ACCOUNTING PRINCIPLES
A. Notes, accounts and other receivablesEffective January 1, 2011, the Group prospectively adopted the amendments to R.O.C. SFAS No. 34, “Financial Instruments: Recognition and Measurement.” The Group recognizes impairment loss on notes, accounts and other receivables when there is an objective evidence of impairment. This accounting change has no significant effect on the Group’s consolidated financial statements as of and for the year ended December 31, 2011.
B. Operating segmentsEffective January 1, 2011, the Group adopted R.O.C. SFAS No. 41, “Operating Segments” to replace the original R.O.C. SFAS No. 20, “Segment Reporting”. In accordance with such standard, the Group restated the segment information for 2010 upon the first adoption of R.O.C. SFAS No. 41. This change in accounting principle had no significant effect on net income and earnings per share for the year ended December 31, 2011.
4. DETAILS OF SIGNIFICANTACCOUNTS
(1). Cash and cash equivalents
156
~20~
4. DETAILS OF SIGNIFICANT ACCOUNTS(1). Cash and cash equivalents
(2). Financial assets at fair value through profit or loss
1.The Group recognized net (loss) gain of ($14,426) and $26,447 for the years ended December 31,2012 and 2011, respectively.
2. For details of pledged assets, please refer to Note 6.(3). Notes receivable
2012 2011Cash:
Cash on hand 12,706$ 9,495$Checking accounts 2,412,193 352,637Savings deposits 1,649,391 692,195Time deposits 21,943 3,547
4,096,233 1,057,874Cash equivalents:
Repurchase of bonds 256,000 65,0004,352,233$ 1,122,874$
December 31,
2012 2011Current items:
Financial assets held for tradingListed (TSE and OTC) stocks 263,029$ 264,955$Mutual funds 17,665 93,778
280,694 358,733Valuation adjustments 20,458)( 6,072)(
260,236$ 352,661$Non-Current items:
Financial assets held for tradingMutual funds 76,000$ -$Valuation adjustments 593 -
76,593$ -$
December 31,
2012 2011
Notes receivable 144,397$ 62,348$Less: Allowance for doubtful accounts 3,703)( 3,703)(
140,694$ 58,645$
December 31,
1. The Group recognized net (loss) gain of ($14,426) and $26,447 for the years ended December 31, 2012 and 2011, respectively.
2. For details of pledged assets, please refer to Note 6.(3). Notes receivable
~21~
(4). Accounts receivable
(5). Inventories
A.For details of pledged assets, please refer to Note 6.B.For the years ended December 31, 2012 and 2011, the interest capitalized as cost of inventory
are as follows:
2012 2011
Accounts receivable 2,433,470$ 1,245,008$
Less: Allowance for doubtful accounts 7,239)( 7,136)(2,426,231$ 1,237,872$
December 31,
2012 2011
Construction in progress 26,256,361$ 32,464,832$Less: Advance construction receipts 23,301,771)( 22,268,433)(
Construction in progress, net 2,954,590 10,196,399
Land held for construction site 10,153,301 13,495,155
Buildings and land held for sale 1,677,831 781,227
Prepayment for land 162,269 579,573
Prepayment for buildings and land 702,134 488,861Merchandise 28,136 34,045
Total inventories 15,678,261 25,575,260Less:Allowance for decline in market
value and obsolescence 155,390)( 183,642)(
15,522,871$ 25,391,618$
December 31,
2012 2011
Interest paid before capitalization 579,981$ 593,778$Interest capitalized 152,134$ 91,210$
Annual interest rate used for capitalization 1.25%~3.32% 1.68%~3.18%
(4). Accounts receivable~20~
4. DETAILS OF SIGNIFICANT ACCOUNTS(1). Cash and cash equivalents
(2). Financial assets at fair value through profit or loss
1.The Group recognized net (loss) gain of ($14,426) and $26,447 for the years ended December 31,2012 and 2011, respectively.
2. For details of pledged assets, please refer to Note 6.(3). Notes receivable
2012 2011Cash:
Cash on hand 12,706$ 9,495$Checking accounts 2,412,193 352,637Savings deposits 1,649,391 692,195Time deposits 21,943 3,547
4,096,233 1,057,874Cash equivalents:
Repurchase of bonds 256,000 65,0004,352,233$ 1,122,874$
December 31,
2012 2011Current items:
Financial assets held for tradingListed (TSE and OTC) stocks 263,029$ 264,955$Mutual funds 17,665 93,778
280,694 358,733Valuation adjustments 20,458)( 6,072)(
260,236$ 352,661$Non-Current items:
Financial assets held for tradingMutual funds 76,000$ -$Valuation adjustments 593 -
76,593$ -$
December 31,
2012 2011
Notes receivable 144,397$ 62,348$Less: Allowance for doubtful accounts 3,703)( 3,703)(
140,694$ 58,645$
December 31,
(2). Financial assets at fair value through profit or loss
Prince Housing & Development Corp . Annual Report 2012
157
~21~
(4). Accounts receivable
(5). Inventories
A.For details of pledged assets, please refer to Note 6.B.For the years ended December 31, 2012 and 2011, the interest capitalized as cost of inventory
are as follows:
2012 2011
Accounts receivable 2,433,470$ 1,245,008$
Less: Allowance for doubtful accounts 7,239)( 7,136)(2,426,231$ 1,237,872$
December 31,
2012 2011
Construction in progress 26,256,361$ 32,464,832$Less: Advance construction receipts 23,301,771)( 22,268,433)(
Construction in progress, net 2,954,590 10,196,399
Land held for construction site 10,153,301 13,495,155
Buildings and land held for sale 1,677,831 781,227
Prepayment for land 162,269 579,573
Prepayment for buildings and land 702,134 488,861Merchandise 28,136 34,045
Total inventories 15,678,261 25,575,260Less:Allowance for decline in market
value and obsolescence 155,390)( 183,642)(
15,522,871$ 25,391,618$
December 31,
2012 2011
Interest paid before capitalization 579,981$ 593,778$Interest capitalized 152,134$ 91,210$
Annual interest rate used for capitalization 1.25%~3.32% 1.68%~3.18%
~21~
(4). Accounts receivable
(5). Inventories
A.For details of pledged assets, please refer to Note 6.B.For the years ended December 31, 2012 and 2011, the interest capitalized as cost of inventory
are as follows:
2012 2011
Accounts receivable 2,433,470$ 1,245,008$
Less: Allowance for doubtful accounts 7,239)( 7,136)(2,426,231$ 1,237,872$
December 31,
2012 2011
Construction in progress 26,256,361$ 32,464,832$Less: Advance construction receipts 23,301,771)( 22,268,433)(
Construction in progress, net 2,954,590 10,196,399
Land held for construction site 10,153,301 13,495,155
Buildings and land held for sale 1,677,831 781,227
Prepayment for land 162,269 579,573
Prepayment for buildings and land 702,134 488,861Merchandise 28,136 34,045
Total inventories 15,678,261 25,575,260Less:Allowance for decline in market
value and obsolescence 155,390)( 183,642)(
15,522,871$ 25,391,618$
December 31,
2012 2011
Interest paid before capitalization 579,981$ 593,778$Interest capitalized 152,134$ 91,210$
Annual interest rate used for capitalization 1.25%~3.32% 1.68%~3.18%
(5). Inventories
A. For details of pledged assets, please refer to Note 6.B. For the years ended December 31, 2012 and 2011, the interest capitalized as cost of inventory
are as follows:
158
~22~
C.D
iscl
osur
eof
sign
ifica
ntco
nstru
ctio
n:
Estim
ated
Perc
enta
geA
ccum
ulat
ed
Nam
eof
cons
truct
ion
cont
ract
Con
tract
amou
ntco
nstru
ctio
nco
stof
com
plet
ion
cons
truct
ion
prof
it/(lo
ss)
Kao
hsiu
ngM
RT
12,3
09,6
85$
$13
,591
,830
100.
00%
($1,
282,
145)
Taip
eiC
ityH
allB
usSt
atio
n4,
611,
635
4,50
3,75
399
.82%
107,
688
New
cons
truct
ion
ofC
haoj
hou
Rai
lway
Stat
ion
3,59
8,09
53,
454,
171
38.5
6%55
,497
Tsen
g-W
enR
eser
voir
3,59
3,22
03,
530,
296
71.5
3%45
,010
Taoy
uan
MR
TA
irpor
tLin
e-C
U03
1,65
0,93
71,
612,
757
94.1
5%35
,947
Wes
tern
Coa
stEx
pres
sway
-WH
53-1
1,30
2,52
31,
305,
694
95.6
1%3,
171)
(
(a)A
sofD
ecem
ber3
1,20
12,s
igni
fican
tcon
stru
ctio
nar
ese
tfor
thbe
low:
(b)A
sofD
ecem
ber3
1,20
11,s
igni
fican
tcon
stru
ctio
nar
ese
tfor
thbe
low:
Estim
ated
Perc
enta
geof
Acc
umul
ated
Nam
eof
cons
truct
ion
cont
ract
Con
tract
amou
ntco
nstru
ctio
nco
stco
mpl
etio
nco
nstru
ctio
npr
ofit/
(loss
)
Kao
hsiu
ngM
RT
12,2
06,7
60$
13,5
90,8
12$
100.
00%
1,38
4,05
1)($
Taip
eiC
ityH
allB
usSt
atio
n4,
833,
457
4,72
5,57
595
.89%
103,
448
New
cons
truct
ion
ofC
haoj
hou
Rai
lway
Stat
ion
3,59
8,09
53,
454,
171
2.12
%3,
051
Tsen
g-W
enR
eser
voir
3,59
3,22
03,
530,
296
67.3
0%42
,348
Taoy
uan
MR
TA
irpor
tLin
e-C
U03
1,65
4,69
21,
602,
757
86.2
5%44
,794
Wes
tern
Coa
stEx
pres
s-W
H69
-11,
459,
522
1,31
7,04
710
0.00
%14
2,47
5
Wes
tern
Coa
stEx
pres
s-W
H53
-11,
252,
428
1,19
5,69
168
.01%
38,5
87~22~
C.D
iscl
osur
eof
sign
ifica
ntco
nstru
ctio
n:
Estim
ated
Perc
enta
geA
ccum
ulat
ed
Nam
eof
cons
truct
ion
cont
ract
Con
tract
amou
ntco
nstru
ctio
nco
stof
com
plet
ion
cons
truct
ion
prof
it/(lo
ss)
Kao
hsiu
ngM
RT
12,3
09,6
85$
$13
,591
,830
100.
00%
($1,
282,
145)
Taip
eiC
ityH
allB
usSt
atio
n4,
611,
635
4,50
3,75
399
.82%
107,
688
New
cons
truct
ion
ofC
haoj
hou
Rai
lway
Stat
ion
3,59
8,09
53,
454,
171
38.5
6%55
,497
Tsen
g-W
enR
eser
voir
3,59
3,22
03,
530,
296
71.5
3%45
,010
Taoy
uan
MR
TA
irpor
tLin
e-C
U03
1,65
0,93
71,
612,
757
94.1
5%35
,947
Wes
tern
Coa
stEx
pres
sway
-WH
53-1
1,30
2,52
31,
305,
694
95.6
1%3,
171)
(
(a)A
sofD
ecem
ber3
1,20
12,s
igni
fican
tcon
stru
ctio
nar
ese
tfor
thbe
low:
(b)A
sofD
ecem
ber3
1,20
11,s
igni
fican
tcon
stru
ctio
nar
ese
tfor
thbe
low:
Estim
ated
Perc
enta
geof
Acc
umul
ated
Nam
eof
cons
truct
ion
cont
ract
Con
tract
amou
ntco
nstru
ctio
nco
stco
mpl
etio
nco
nstru
ctio
npr
ofit/
(loss
)
Kao
hsiu
ngM
RT
12,2
06,7
60$
13,5
90,8
12$
100.
00%
1,38
4,05
1)($
Taip
eiC
ityH
allB
usSt
atio
n4,
833,
457
4,72
5,57
595
.89%
103,
448
New
cons
truct
ion
ofC
haoj
hou
Rai
lway
Stat
ion
3,59
8,09
53,
454,
171
2.12
%3,
051
Tsen
g-W
enR
eser
voir
3,59
3,22
03,
530,
296
67.3
0%42
,348
Taoy
uan
MR
TA
irpor
tLin
e-C
U03
1,65
4,69
21,
602,
757
86.2
5%44
,794
Wes
tern
Coa
stEx
pres
s-W
H69
-11,
459,
522
1,31
7,04
710
0.00
%14
2,47
5
Wes
tern
Coa
stEx
pres
s-W
H53
-11,
252,
428
1,19
5,69
168
.01%
38,5
87
(b)
As
of D
ecem
ber 3
1, 2
011,
sig
nific
ant c
onst
ruct
ion
are
set f
orth
bel
ow:
C. D
iscl
osur
e of
sig
nific
ant c
onst
ruct
ion
:(a
) A
s of
Dec
embe
r 31,
201
2, s
igni
fican
t con
stru
ctio
n ar
e se
t for
th b
elow
:
Prince Housing & Development Corp . Annual Report 2012
159
~23~
(6). Available-for-sale financial assets
Certain available-for-sale financial assets were pledged as security for short-term and commercialpapers payable. For details of pledged assets, please refer to Note 6.
(7). Financial assets carried at cost
(a)The Company was committed to invest US$10,000,000 in President Energy Development Ltd. OnJune 17, 2010 , July 8, 2011 and July 4, 2012, President Energy Development Ltd. reduced its capitaland returned share capital amounting to US$127,500, US$85,000 and US$85,000, respectively. As ofreporting date, the Company had paid US$1,275,000 for the shares investment.
(b)The investments were measured at cost since its fair value cannot be measured reliably.
(c) Certain financial assets carried at cost had been impaired. Accordingly, the Group recognizedimpairment loss of $330 and $5,581 for the years ended December 31, 2012 and 2011, respectively.
(d) Certain financial assets carried at cost were pledged as security for short-term and commercialpapers payable. For details of pledged assets, please refer to Note 6.
Items 2012 2011
Non-current items:
Listed ( TSE and OTC ) stock 161,146$ 161,146$Adjustment of financial assets heldfor trading 1,419,941 855,909
1,581,087$ 1,017,055$
December 31,
Items 2012 2011
Non-current items:
Unlisted stocks 958,610$ 1,027,513$Emerging stocks 7,341 7,341
965,951$ 1,034,854$
December 31,
(6). Available-for-sale financial assets
(a) The Company was committed to invest US$10,000,000 in President Energy Development Ltd. On June 17, 2010 , July 8, 2011 and July 4, 2012, President Energy Development Ltd. reduced its capital and returned share capital amounting to US$127,500, US$85,000 and US$85,000, respectively. As of reporting date, the Company had paid US$1,275,000 for the shares investment.
(b) The investments were measured at cost since its fair value cannot be measured reliably.(c) Certain financial assets carried at cost had been impaired. Accordingly, the Group recognized
impairment loss of $330 and $5,581 for the years ended December 31, 2012 and 2011, respectively.
(d) Certain financial assets carried at cost were pledged as security for short-term and commercial papers payable. For details of pledged assets, please refer to Note 6.
~23~
(6). Available-for-sale financial assets
Certain available-for-sale financial assets were pledged as security for short-term and commercialpapers payable. For details of pledged assets, please refer to Note 6.
(7). Financial assets carried at cost
(a)The Company was committed to invest US$10,000,000 in President Energy Development Ltd. OnJune 17, 2010 , July 8, 2011 and July 4, 2012, President Energy Development Ltd. reduced its capitaland returned share capital amounting to US$127,500, US$85,000 and US$85,000, respectively. As ofreporting date, the Company had paid US$1,275,000 for the shares investment.
(b)The investments were measured at cost since its fair value cannot be measured reliably.
(c) Certain financial assets carried at cost had been impaired. Accordingly, the Group recognizedimpairment loss of $330 and $5,581 for the years ended December 31, 2012 and 2011, respectively.
(d) Certain financial assets carried at cost were pledged as security for short-term and commercialpapers payable. For details of pledged assets, please refer to Note 6.
Items 2012 2011
Non-current items:
Listed ( TSE and OTC ) stock 161,146$ 161,146$Adjustment of financial assets heldfor trading 1,419,941 855,909
1,581,087$ 1,017,055$
December 31,
Items 2012 2011
Non-current items:
Unlisted stocks 958,610$ 1,027,513$Emerging stocks 7,341 7,341
965,951$ 1,034,854$
December 31,
Certain available-for-sale financial assets were pledged as security for short-term and commercial papers payable. For details of pledged assets, please refer to Note 6.
(7). Financial assets carried at cost
160
~24~
(8). Long-term equity investments accounted for under the equity methodA.Details of long-term equity investments accounted for under the equity method are set forth below:
B.Details of investment income accounted for under the equity method are set forth below:
C.The investment income of certain investees for the years ended December 31, 2012 and 2011,accounted for under the equity method, was based on their financial statements for thecorresponding periods, which were audited by other auditors. The investment income recognizedfor these investees for the years ended December 31, 2012 and 2011 was $63,192 and $31,553,respectively. As of December 31, 2012 and 2011, long-term equity investments in these investeeswere $810,735 and $760,609, respectively.The investees whose financial statements were audited by other auditors for the years endedDecember 31, 2012 and 2011 were as follows:Geng-Ding Co., Ltd., Amida Trustlink AssetsManagement Co., Ltd., PPG Investment Inc. and Queen Holdings Ltd.
D. Certain long-term equity investments were pledged as security for short-term loans andcommercial papers payable. For details of pledged assets, please refer to Note 6.
Carrying Percentage of Carrying Percentage of
amount ownership amount ownership
Geng-Ding Co., Ltd. 317,735$ 30.00% 305,165$ 30.00%
Uni-President Development Corp. 980,708 30.00% 911,199 30.00%Amida Trustlink Assets
Managemnt Co., Ltd. 164,806 45.21% 131,407 45.21%
PPG Investment Inc. 57,077 27.27% 63,512 27.27%
Queen Holdings Ltd. 271,117 27.27% 260,525 27.27%
Ming-Da Enterprise Co., Ltd. 132,453 20.00% 134,018 20.00%
1,923,896$ 1,805,826$
December 31,
2012 2011
Investee companies 2012 2011
Geng-Ding Co., Ltd. 12,571$ 13,719$
Uni-President Development Corp. 69,509 30,454
32,818 5,873)(
PPG Investment Inc. 3,908)( 8,056
Queen Holdings Ltd. 21,711 15,651
Ming-Da Enterprise Co., Ltd. 1,566)( 8,967
131,135$ 70,974$
Amida Trustlink Assets Management Co., Ltd.
(8) Long-term equity investments accounted for under the equity methodA. Details of long-term equity investments accounted for under the equity method are set forth
below.
B. Details of investment income accounted for under the equity method are set forth below:
~24~
(8). Long-term equity investments accounted for under the equity methodA.Details of long-term equity investments accounted for under the equity method are set forth below:
B.Details of investment income accounted for under the equity method are set forth below:
C.The investment income of certain investees for the years ended December 31, 2012 and 2011,accounted for under the equity method, was based on their financial statements for thecorresponding periods, which were audited by other auditors. The investment income recognizedfor these investees for the years ended December 31, 2012 and 2011 was $63,192 and $31,553,respectively. As of December 31, 2012 and 2011, long-term equity investments in these investeeswere $810,735 and $760,609, respectively.The investees whose financial statements were audited by other auditors for the years endedDecember 31, 2012 and 2011 were as follows:Geng-Ding Co., Ltd., Amida Trustlink AssetsManagement Co., Ltd., PPG Investment Inc. and Queen Holdings Ltd.
D. Certain long-term equity investments were pledged as security for short-term loans andcommercial papers payable. For details of pledged assets, please refer to Note 6.
Carrying Percentage of Carrying Percentage of
amount ownership amount ownership
Geng-Ding Co., Ltd. 317,735$ 30.00% 305,165$ 30.00%
Uni-President Development Corp. 980,708 30.00% 911,199 30.00%Amida Trustlink Assets
Managemnt Co., Ltd. 164,806 45.21% 131,407 45.21%
PPG Investment Inc. 57,077 27.27% 63,512 27.27%
Queen Holdings Ltd. 271,117 27.27% 260,525 27.27%
Ming-Da Enterprise Co., Ltd. 132,453 20.00% 134,018 20.00%
1,923,896$ 1,805,826$
December 31,
2012 2011
Investee companies 2012 2011
Geng-Ding Co., Ltd. 12,571$ 13,719$
Uni-President Development Corp. 69,509 30,454
32,818 5,873)(
PPG Investment Inc. 3,908)( 8,056
Queen Holdings Ltd. 21,711 15,651
Ming-Da Enterprise Co., Ltd. 1,566)( 8,967
131,135$ 70,974$
Amida Trustlink Assets Management Co., Ltd.
C. The investment income of certain investees for the years ended December 31, 2012 and 2011, accounted for under the equity method, was based on their financial statements for the corresponding periods, which were audited by other auditors. The investment income recognized for these investees for the years ended December 31, 2012 and 2011 was $63,192 and $31,553, respectively. As of December 31, 2012 and 2011, long-term equity investments in these investees were $810,735 and $760,609, respectively. The investees whose financial statements were audited by other auditors for the years ended December 31, 2012 and 2011 were as follows:Geng-Ding Co., Ltd., Amida Trustlink Assets Management Co., Ltd., PPG Investment Inc. and Queen Holdings Ltd.
D. Certain long-term equity investments were pledged as security for short-term loans and commercial papers payable. For details of pledged assets, please refer to Note 6.
Prince Housing & Development Corp . Annual Report 2012
161
~25~
(9). Investments in real estateA. Details of real estate investments are set forth below:
B. For details of pledged assets, please refer to Note 6.
(10).Property, plant and equipment
2012 2011
Beitou District, Zhenxing Section 3, No. 122,etc., Taipei City
162,426$ 162,426$
Xiaobei Section No. 966, Tainan City 68,329 68,329Wenlin Secion 4, Taipei City 38,552 38,552Others (individually less than 3%) 1,811 1,811
271,118$ 271,118$
December 31,
Initial costAccumulateddepreciation Net book value
Land 2,775,597$ -$ 2,775,597$
Buildings 4,233,465 605,617)( 3,627,848
Machinery and equipment 12,008 1,896)( 10,112
51,719 29,696)( 22,023
Transportation equipment 29,115 6,093)( 23,022
Office equipment 909,717 369,762)( 539,955
Leased assets 71,848 - 71,848
Property held for lease - Land 3,205,959 - 3,205,959
6,629,884 863,179)( 5,766,705
Leasehold improvements 47,000 37,600)( 9,400
Other equipment 90,620 11,893)( 78,727Coustruction in progress and
prepayments for equipment 7,277 - 7,27718,064,209$ 1,925,736)($ 16,138,473$
December 31, 2012
Property held for lease - Buildings
Computer and communication equipment
(9) Investments in real estateA. Details of real estate investments are set forth below:
~25~
(9). Investments in real estateA. Details of real estate investments are set forth below:
B. For details of pledged assets, please refer to Note 6.
(10).Property, plant and equipment
2012 2011
Beitou District, Zhenxing Section 3, No. 122,etc., Taipei City
162,426$ 162,426$
Xiaobei Section No. 966, Tainan City 68,329 68,329Wenlin Secion 4, Taipei City 38,552 38,552Others (individually less than 3%) 1,811 1,811
271,118$ 271,118$
December 31,
Initial costAccumulateddepreciation Net book value
Land 2,775,597$ -$ 2,775,597$
Buildings 4,233,465 605,617)( 3,627,848
Machinery and equipment 12,008 1,896)( 10,112
51,719 29,696)( 22,023
Transportation equipment 29,115 6,093)( 23,022
Office equipment 909,717 369,762)( 539,955
Leased assets 71,848 - 71,848
Property held for lease - Land 3,205,959 - 3,205,959
6,629,884 863,179)( 5,766,705
Leasehold improvements 47,000 37,600)( 9,400
Other equipment 90,620 11,893)( 78,727Coustruction in progress and
prepayments for equipment 7,277 - 7,27718,064,209$ 1,925,736)($ 16,138,473$
December 31, 2012
Property held for lease - Buildings
Computer and communication equipment
B. For details of pledged assets, please refer to Note 6.(9) Property, plant and equipment
162
~26~
For details of pledged assets, please refer to Note 6.(11).Short-term loans
For details of pledged assets, please refer to Note 6.(12).Notes and bills payable
(a) The above commercial papers were issued by banks and bills financial institutions.(b) For details of pledged assets, please refer to Note 6.
Initial costAccumulateddepreciation Net book value
Land 2,780,311$ -$ 2,780,311$Buildings 3,379,320 444,484)( 2,934,836Machinery and equipment 15,344 1,859)( 13,485
56,995 29,510)( 27,485Transportation equipment 17,232 11,980)( 5,252Office equipment 866,404 245,007)( 621,397Property held for lease - Land 3,267,922 - 3,267,922Property held for lease - Buildings 6,662,160 724,587)( 5,937,573Leasehold improvements 47,000 28,553)( 18,447Other equipment 88,749 7,789)( 80,960Coustruction in progress and
prepayments for equipment 540,458 - 540,45817,721,895$ 1,493,769)($ 16,228,126$
December 31, 2011
Computer and communication equipment
2012 2011Unsecured loans 2,890,000$ 959,400$Secured loans 1,470,000 4,627,000
4,360,000$ 5,586,400$Range of inerest rate 1.50%~2.69% 2.00%~2.75%
December 31,
2012 2011Commercial papers 1,955,000$ 1,883,000$Less: Unamortized discount 2,113)( 2,823)(
1,952,887$ 1,880,177$Range of interest rate 0.85%~1.80% 0.90%~2.08%
December 31,
~26~
For details of pledged assets, please refer to Note 6.(11).Short-term loans
For details of pledged assets, please refer to Note 6.(12).Notes and bills payable
(a) The above commercial papers were issued by banks and bills financial institutions.(b) For details of pledged assets, please refer to Note 6.
Initial costAccumulateddepreciation Net book value
Land 2,780,311$ -$ 2,780,311$Buildings 3,379,320 444,484)( 2,934,836Machinery and equipment 15,344 1,859)( 13,485
56,995 29,510)( 27,485Transportation equipment 17,232 11,980)( 5,252Office equipment 866,404 245,007)( 621,397Property held for lease - Land 3,267,922 - 3,267,922Property held for lease - Buildings 6,662,160 724,587)( 5,937,573Leasehold improvements 47,000 28,553)( 18,447Other equipment 88,749 7,789)( 80,960Coustruction in progress and
prepayments for equipment 540,458 - 540,45817,721,895$ 1,493,769)($ 16,228,126$
December 31, 2011
Computer and communication equipment
2012 2011Unsecured loans 2,890,000$ 959,400$Secured loans 1,470,000 4,627,000
4,360,000$ 5,586,400$Range of inerest rate 1.50%~2.69% 2.00%~2.75%
December 31,
2012 2011Commercial papers 1,955,000$ 1,883,000$Less: Unamortized discount 2,113)( 2,823)(
1,952,887$ 1,880,177$Range of interest rate 0.85%~1.80% 0.90%~2.08%
December 31,
For details of pledged assets, please refer to Note 6.(11) Short-term loans
~26~
For details of pledged assets, please refer to Note 6.(11).Short-term loans
For details of pledged assets, please refer to Note 6.(12).Notes and bills payable
(a) The above commercial papers were issued by banks and bills financial institutions.(b) For details of pledged assets, please refer to Note 6.
Initial costAccumulateddepreciation Net book value
Land 2,780,311$ -$ 2,780,311$Buildings 3,379,320 444,484)( 2,934,836Machinery and equipment 15,344 1,859)( 13,485
56,995 29,510)( 27,485Transportation equipment 17,232 11,980)( 5,252Office equipment 866,404 245,007)( 621,397Property held for lease - Land 3,267,922 - 3,267,922Property held for lease - Buildings 6,662,160 724,587)( 5,937,573Leasehold improvements 47,000 28,553)( 18,447Other equipment 88,749 7,789)( 80,960Coustruction in progress and
prepayments for equipment 540,458 - 540,45817,721,895$ 1,493,769)($ 16,228,126$
December 31, 2011
Computer and communication equipment
2012 2011Unsecured loans 2,890,000$ 959,400$Secured loans 1,470,000 4,627,000
4,360,000$ 5,586,400$Range of inerest rate 1.50%~2.69% 2.00%~2.75%
December 31,
2012 2011Commercial papers 1,955,000$ 1,883,000$Less: Unamortized discount 2,113)( 2,823)(
1,952,887$ 1,880,177$Range of interest rate 0.85%~1.80% 0.90%~2.08%
December 31,
For details of pledged assets, please refer to Note 6.(12) Notes and bills payable
(a) The above commercial papers were issued by banks and bills financial institutions.(b) For details of pledged assets, please refer to Note 6.
Prince Housing & Development Corp . Annual Report 2012
163~27~
(13).Receipts in advance
(14).Bonds payable
Note: Please refer to Note 4(14)A(g).The Company issued secured ordinary bonds payable in July 2012. The significant terms of thebonds are as follows:(a)Total issue amount: $2,000,000(b)Issue price: At pay value of $100 per bond.(c)Coupon rate: 1.33%(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year starting
July 2012 based on the coupon rate.(e)Repayment term: The bonds are repaid upon the maturity of the bonds.(f)Period: 5 years, from July 12, 2012 to July 12, 2017.(g)The way of security: The Bonds are secured by Bank of Taiwan.(h)Guarantee Bank: The Bonds are guaranteed by Mega International Commercial Bank.
(15).Long-term loans
For details of pledged assets, please refer to Note 6.
2012 2011Advance real estate receipts 1,421,450$ 4,719,446$Advance construction receipts 633,630 953,023Advance rent 148,012 82,263Other advance receipts 128,259 95,964
2,331,351$ 5,850,696$
December 31,
Collateral or2012 2011 security
2012 1st secured ordinary bonds payable 2,000,000$ -$ Note
December 31,
2012 2011Secured bank loans 10,060,561$ 16,987,039$Unsecured loans 3,490,000 300,000Long-term commercial paper 400,000 400,000
13,950,561 17,687,039Less: Unamortized discount 1,687)( 562)(
Current portion 3,777,505)( 4,068,868)(10,171,369$ 13,617,609$
Range of maturity dates 101.02.06~116.11.02 101.02.13~116.11.02
Range of interest rates 0.86%~3.07% 0.86%~3.01%
December 31,
~27~
(13).Receipts in advance
(14).Bonds payable
Note: Please refer to Note 4(14)A(g).The Company issued secured ordinary bonds payable in July 2012. The significant terms of thebonds are as follows:(a)Total issue amount: $2,000,000(b)Issue price: At pay value of $100 per bond.(c)Coupon rate: 1.33%(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year starting
July 2012 based on the coupon rate.(e)Repayment term: The bonds are repaid upon the maturity of the bonds.(f)Period: 5 years, from July 12, 2012 to July 12, 2017.(g)The way of security: The Bonds are secured by Bank of Taiwan.(h)Guarantee Bank: The Bonds are guaranteed by Mega International Commercial Bank.
(15).Long-term loans
For details of pledged assets, please refer to Note 6.
2012 2011Advance real estate receipts 1,421,450$ 4,719,446$Advance construction receipts 633,630 953,023Advance rent 148,012 82,263Other advance receipts 128,259 95,964
2,331,351$ 5,850,696$
December 31,
Collateral or2012 2011 security
2012 1st secured ordinary bonds payable 2,000,000$ -$ Note
December 31,
2012 2011Secured bank loans 10,060,561$ 16,987,039$Unsecured loans 3,490,000 300,000Long-term commercial paper 400,000 400,000
13,950,561 17,687,039Less: Unamortized discount 1,687)( 562)(
Current portion 3,777,505)( 4,068,868)(10,171,369$ 13,617,609$
Range of maturity dates 101.02.06~116.11.02 101.02.13~116.11.02
Range of interest rates 0.86%~3.07% 0.86%~3.01%
December 31,
(13) Notes and bills payable
~27~
(13).Receipts in advance
(14).Bonds payable
Note: Please refer to Note 4(14)A(g).The Company issued secured ordinary bonds payable in July 2012. The significant terms of thebonds are as follows:(a)Total issue amount: $2,000,000(b)Issue price: At pay value of $100 per bond.(c)Coupon rate: 1.33%(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year starting
July 2012 based on the coupon rate.(e)Repayment term: The bonds are repaid upon the maturity of the bonds.(f)Period: 5 years, from July 12, 2012 to July 12, 2017.(g)The way of security: The Bonds are secured by Bank of Taiwan.(h)Guarantee Bank: The Bonds are guaranteed by Mega International Commercial Bank.
(15).Long-term loans
For details of pledged assets, please refer to Note 6.
2012 2011Advance real estate receipts 1,421,450$ 4,719,446$Advance construction receipts 633,630 953,023Advance rent 148,012 82,263Other advance receipts 128,259 95,964
2,331,351$ 5,850,696$
December 31,
Collateral or2012 2011 security
2012 1st secured ordinary bonds payable 2,000,000$ -$ Note
December 31,
2012 2011Secured bank loans 10,060,561$ 16,987,039$Unsecured loans 3,490,000 300,000Long-term commercial paper 400,000 400,000
13,950,561 17,687,039Less: Unamortized discount 1,687)( 562)(
Current portion 3,777,505)( 4,068,868)(10,171,369$ 13,617,609$
Range of maturity dates 101.02.06~116.11.02 101.02.13~116.11.02
Range of interest rates 0.86%~3.07% 0.86%~3.01%
December 31,
(14) Bonds payable
Note: Please refer to Note 4(14)A(g).The Company issued secured ordinary bonds payable in July 2012. The significant terms of the bonds are as follows:(a) Total issue amount: $2,000,000(b) Issue price: At pay value of $100 per bond.(c) Coupon rate: 1.33%(d) Terms of interest repayment: The bonds interest is calculated on simple rate every year
starting July 2012 based on the coupon rate.(e) Repayment term: The bonds are repaid upon the maturity of the bonds.(f) Period: 5 years, from July 12, 2012 to July 12, 2017.(g) The way of security: The Bonds are secured by Bank of Taiwan.(h) Guarantee Bank: The Bonds are guaranteed by Mega International Commercial Bank.
(15) Long-term loans
164
~28~
(16).Pension plansThe Company and its R.O.C. subsidiaries have a non-contributory and funded defined benefitpension plan in accordance with the Labor Standards Law, covering all regular employees. Underthe defined benefit pension plan, two units are accrued for each year of service for the first 15years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pensionbenefits are based on the number of units accrued and the average monthly salaries and wages ofthe last 6 months prior to retirement. The Company contributes monthly an amount equal to 8% ofthe employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan,the trustee, under the name of the independent retirement fund committee.The following sets forth the pension information based on the actuarial report:(a)Actuarial assumptions
(b)The funded status of the plans as of December 31, 2012 and 2011 is as follows:
2012 2011
Discount rate 1.50%~1.75% 1.90%
Rate of compensation increase 1.50%~2.00% 1.50%~2.00%
Expected rate of return on plan assets 1.50%~1.75% 1.50%~1.90%
December 31, 2012 December 31, 2011
Benefit obligation:
Vested benefit obligation 39,542)($ 45,769)($Non-vested benefit obligation 105,893)( 106,402)(
Accumulated benefit obligation 145,435)( 152,171)(
25,356)( 25,864)(
Projected benefit obligation 170,791)( 178,035)(Fair value of plan assets 49,064 65,598
Funded status 121,727)( 112,437)(
Unrealized net transition obligation 11,668 13,126
Unrecognized loss on plan assets 47,904 40,748Complement recognized accrued pension
liabilities 40,646)( 37,764)(
Accrued pension liabilities 102,801)($ 96,327)($
Additional benefit based on future salaries
(16) Pension plansThe Company and its R.O.C. subsidiaries have a non-contributory and funded defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 8% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. The following sets forth the pension information based on the actuarial report:(a) Actuarial assumptions
~28~
(16).Pension plansThe Company and its R.O.C. subsidiaries have a non-contributory and funded defined benefitpension plan in accordance with the Labor Standards Law, covering all regular employees. Underthe defined benefit pension plan, two units are accrued for each year of service for the first 15years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pensionbenefits are based on the number of units accrued and the average monthly salaries and wages ofthe last 6 months prior to retirement. The Company contributes monthly an amount equal to 8% ofthe employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan,the trustee, under the name of the independent retirement fund committee.The following sets forth the pension information based on the actuarial report:(a)Actuarial assumptions
(b)The funded status of the plans as of December 31, 2012 and 2011 is as follows:
2012 2011
Discount rate 1.50%~1.75% 1.90%
Rate of compensation increase 1.50%~2.00% 1.50%~2.00%
Expected rate of return on plan assets 1.50%~1.75% 1.50%~1.90%
December 31, 2012 December 31, 2011
Benefit obligation:
Vested benefit obligation 39,542)($ 45,769)($Non-vested benefit obligation 105,893)( 106,402)(
Accumulated benefit obligation 145,435)( 152,171)(
25,356)( 25,864)(
Projected benefit obligation 170,791)( 178,035)(Fair value of plan assets 49,064 65,598
Funded status 121,727)( 112,437)(
Unrealized net transition obligation 11,668 13,126
Unrecognized loss on plan assets 47,904 40,748Complement recognized accrued pension
liabilities 40,646)( 37,764)(
Accrued pension liabilities 102,801)($ 96,327)($
Additional benefit based on future salaries
(b) The funded status of the plans as of December 31, 2012 and 2011 is as follows:
Prince Housing & Development Corp . Annual Report 2012
165
~29~
(c)Net pension cost comprises the following:
Effective July 1, 2005, the Company and its R.O.C. subsidiaries have established a fundeddefined contribution pension plan (the “New Plan”) under the Labor Pension Act. Employeeshave the option to be covered under the New Plan. Under the New Plan, the Company and itsR.O.C. subsidiaries contribute monthly an amount based on 6% of the employees’ monthlysalaries and wages to the employees’ individual pension accounts at the Bureau of LaborInsurance. The benefits accrued are portable upon termination of employment. The pensioncosts under the defined contribution pension plan for the years ended December 31, 2012 and2011 were $61,243 and $55,780, respectively.
(17).Common stockThe stockholders at their annual stockholders’ meeting on June 17, 2011 adopted a resolution toincrease capital for 89,660 thousand shares through capitalization of unappropriated retainedearnings of $896,605. Pursuant to the approval by the Financial Supervisory Commission,Securities and Futures Bureau, No. 1000035447, the capital increase was effective on July 29,2011. After the capital increase, the paid-in capital was $ 10,858,877.The stockholders at their annual stockholders’ meeting on June 20, 2012 adopted a resolution toincrease capital for 108,589 thousand shares through capitalization of unappropriated retainedearnings of $1,085,888. Pursuant to the approval by the Financial Supervisory Commission,Securities and Futures Bureau, No. 1010034424, the capital increase was effective on August 6,2012. After the capital increase, the paid-in capital was $ 11,944,765.
(18).Capital reservesPursuant to the R.O.C. Company Law, capital reserve arising from paid-in capital in excess of parvalue on issuance of common stocks and donations can be used to cover accumulated deficit or toissue new stocks or cash to shareholders in proportion to their share ownership, provided that theCompany has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requiresthat the amount of capital reserve to be capitalized mentioned above should not exceed 10% of thepaid-in capital each year. Capital reserve should not be used to cover accumulated deficit unlessthe legal reserve is insufficient.
2012 2011Service cost 1,506$ 1,898$Interest cost 3,383 3,410Expected return on plan assets 1,246)( 1,161)(Amortization of unrecognized net
transition obligation 1,458 1,458Amortization of unrecognized loss in
plan assets 2,377 2,588Net pension cost 7,478$ 8,193$
For the years ended December 31,(C) Net pension cost comprises the following:
Effective July 1, 2005, the Company and its R.O.C. subsidiaries have established a funded defined contribution pension plan (the “New Plan”) under the Labor Pension Act. Employees have the option to be covered under the New Plan. Under the New Plan, the Company and its R.O.C. subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are portable upon termination of employment. The pension costs under the defined contribution pension plan for the years ended December 31, 2012 and 2011 were $61,243 and $55,780, respectively.
(17) Common stockThe stockholders at their annual stockholders’meeting on June 17, 2011 adopted a resolution to increase capital for 89,660 thousand shares through capitalization of unappropriated retained earnings of $896,605. Pursuant to the approval by the Financial Supervisory Commission, Securities and Futures Bureau, No. 1000035447, the capital increase was effective on July 29, 2011. After the capital increase, the paid-in capital was $ 10,858,877.The stockholders at their annual stockholders’meeting on June 20, 2012 adopted a resolution to increase capital for 108,589 thousand shares through capitalization of unappropriated retained earnings of $1,085,888. Pursuant to the approval by the Financial Supervisory Commission, Securities and Futures Bureau, No. 1010034424, the capital increase was effective on August 6, 2012. After the capital increase, the paid-in capital was $ 11,944,765.
(18) Capital reservesPursuant to the R.O.C. Company Law, capital reserve arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital reserve to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital reserve should not be used to cover accumulated deficit unless the legal reserve is insufficient.
166
(19) Retained earningsA. In accordance with the Company’s Articles of Incorporation, the Company will take into
consideration its future business plans and capital expenditures in determining the amounts of earnings to be retained and to be distributed. In accordance with the Company Law, 10% of the current year’s earnings, after payment of all taxes and after offsetting accumulated deficits, shall be set aside as legal reserve until the balance of legal reserve is equal to that of issued share capital. Afterwards, an amount shall be appropriated as special reserve in accordance with applicable legal or regulatory requirements, and then distribution should be in the following order:(a) 3% as remuneration to directors and supervisors;(b At least 2% as bonuses to employees; and(c) Appropriation of the remainder plus prior year’s accumulated unappropriated retained
earnings shall be proposed by the Board of Directors, taking into consideration the cash requirements for future business and investments and other factors. In principle, cash and stock dividends shall account for 50% and 50%, respectively, of the total dividends distributed. While, in case the Company has the need for reserving cash for a significant capital expenditure plan, or intends to adopt the high cash dividends policy instead to avoid capital inflation, the Board of Directors may adjust the cash and stock dividends payout ratios; however, cash and stock dividends shall account for at least 30% and 30%, respectively, of the total dividends distributed, and the final adjustments shall be approved by the stockholders. The parties entitled to the employees’ stock bonus may include the employees of the Company’s affiliates who meet certain criteria.
B. According to the R.O.C. Company Law, except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
C. As of December 31, 2012 and 2011, the balance of unappropriated retained earnings is as follows:
~30~
(19).Retained earningsA. In accordance with the Company’s Articles of Incorporation, the Company will take into
consideration its future business plans and capital expenditures in determining the amounts ofearnings to be retained and to be distributed. In accordance with the Company Law, 10% of thecurrent year’s earnings, after payment of all taxes and after offsetting accumulated deficits, shall beset aside as legal reserve until the balance of legal reserve is equal to that of issued share capital.Afterwards, an amount shall be appropriated as special reserve in accordance with applicable legalor regulatory requirements, and then distribution should be in the following order:(a) 3% as remuneration to directors and supervisors;(b) At least 2% as bonuses to employees; and(c) Appropriation of the remainder plus prior year’s accumulated unappropriated retained
earnings shall be proposed by the Board of Directors, taking into consideration the cashrequirements for future business and investments and other factors. In principle, cash andstock dividends shall account for 50% and 50%, respectively, of the total dividendsdistributed. While, in case the Company has the need for reserving cash for a significantcapital expenditure plan, or intends to adopt the high cash dividends policy instead to avoidcapital inflation, the Board of Directors may adjust the cash and stock dividends payoutratios; however, cash and stock dividends shall account for at least 30% and 30%,respectively, of the total dividends distributed, and the final adjustments shall be approvedby the stockholders.The parties entitled to the employees’ stock bonus may include the employees of theCompany’s affiliates who meet certain criteria.
B. According to the R.O.C. Company Law, except for covering accumulated deficit or issuing newstocks or cash to shareholders in proportion to their share ownership, the legal reserve shall notbe used for any other purpose. The use of legal reserve for the issuance of stocks or cash toshareholders in proportion to their share ownership is permitted, provided that the balance ofthe reserve exceeds 25% of the Company’s paid-in capital.
C. As of December 31, 2012 and 2011, the balance of unappropriated retained earnings is asfollows:
2012 2011
Unappropriated retained earnings in and after 1998 2,364,465$ 2,448,137$
December 31,
Prince Housing & Development Corp . Annual Report 2012
167
~31~
D.(a)The appropriation of 2011 and 2010 earnings had been resolved at the stockholders’ meetings onJune 20, 2012 and June 17, 2011, respectively. Details are summarized below:
(b)The appropriation of 2012 earnings had been proposed by the Board of Directors on March15, 2013. Details are summarized below:
As of report day, the abovementioned 2012 earnings appropriation had not been approved bythe stockholders.
E. Employees’ bonus for 2012 and 2011 are estimated and accrued at $31,640 and $41,654,respectively, and directors’ and supervisors’ remuneration for 2012 and 2011 are estimated andaccrued at $47,460 and $62,482, respectively. The basis of estimates is based on a certainpercentage of net income taking into account the legal reserve and other factors prescribed by theCompany’s Articles of Incorporation (2% and 3% of after-tax earnings of 2011 and 2010,respectively). The estimated amounts were recognized as operating expenses for the years endedDecember 31, 2012 and 2011. If the estimated amounts differ from the amounts approved by thestockholders, the difference is recognized as income or expenses in the following year.
F. The actual distribution of 2011 and 2010 earnings was as stated in the previous paragraph. Thedifference of $328 between the amounts recognized in 2010 (cash bonus to employees of $38,224and remunerations to directors and supervisors of $57,335) and the amount resolved by thestockholders was adjusted in the statement of income of 2011. There was no difference for 2011.
Dividends per Dividends pershare share
Amount (in dollars) Amount (in dollars)Legal reserve 231,413$ -$ 213,082$ -$Stock dividends 1,085,888 1.00 896,605 0.90Cash dividends 542,944 0.50 896,605 0.90Employees' cash bonus 41,654 - 38,355 -Directors' and supervisors'
remuneration 62,482 - 57,532 -1,964,381$ 1.50$ 2,102,179$ 1.80$
2011 2010
Dividends pershare
Amount (in dollars)Legal reserve 178,593$ -$Stock dividends 1,194,476 1.00Cash dividends 597,238 0.50Employees' cash bonus 32,147 -
48,220 -2,050,674$ 1.50$
2012
Directors' and supervisors' remuneration
(b) The appropriation of 2012 earnings had been proposed by the Board of Directors on March 15, 2013. Details are summarized below:
~31~
D.(a)The appropriation of 2011 and 2010 earnings had been resolved at the stockholders’ meetings onJune 20, 2012 and June 17, 2011, respectively. Details are summarized below:
(b)The appropriation of 2012 earnings had been proposed by the Board of Directors on March15, 2013. Details are summarized below:
As of report day, the abovementioned 2012 earnings appropriation had not been approved bythe stockholders.
E. Employees’ bonus for 2012 and 2011 are estimated and accrued at $31,640 and $41,654,respectively, and directors’ and supervisors’ remuneration for 2012 and 2011 are estimated andaccrued at $47,460 and $62,482, respectively. The basis of estimates is based on a certainpercentage of net income taking into account the legal reserve and other factors prescribed by theCompany’s Articles of Incorporation (2% and 3% of after-tax earnings of 2011 and 2010,respectively). The estimated amounts were recognized as operating expenses for the years endedDecember 31, 2012 and 2011. If the estimated amounts differ from the amounts approved by thestockholders, the difference is recognized as income or expenses in the following year.
F. The actual distribution of 2011 and 2010 earnings was as stated in the previous paragraph. Thedifference of $328 between the amounts recognized in 2010 (cash bonus to employees of $38,224and remunerations to directors and supervisors of $57,335) and the amount resolved by thestockholders was adjusted in the statement of income of 2011. There was no difference for 2011.
Dividends per Dividends pershare share
Amount (in dollars) Amount (in dollars)Legal reserve 231,413$ -$ 213,082$ -$Stock dividends 1,085,888 1.00 896,605 0.90Cash dividends 542,944 0.50 896,605 0.90Employees' cash bonus 41,654 - 38,355 -Directors' and supervisors'
remuneration 62,482 - 57,532 -1,964,381$ 1.50$ 2,102,179$ 1.80$
2011 2010
Dividends pershare
Amount (in dollars)Legal reserve 178,593$ -$Stock dividends 1,194,476 1.00Cash dividends 597,238 0.50Employees' cash bonus 32,147 -
48,220 -2,050,674$ 1.50$
2012
Directors' and supervisors' remuneration
D. (a) The appropr ia t ion o f 2011 and 2010 ea rn ings had been reso lved a t the stockholders’meetings on June 20, 2012 and June 17, 2011, respectively. Details are summarized below:
As of report day, the abovementioned 2012 earnings appropriation had not been approved bythe stockholders.
E. Employees’ bonus for 2012 and 2011 are estimated and accrued at $31,640 and $41,654, respectively, and directors’ and supervisors’ remuneration for 2012 and 2011 are estimated and accrued at $47,460 and $62,482, respectively. The basis of estimates is based on a certain percentage of net income taking into account the legal reserve and other factors prescribed by the Company’s Articles of Incorporation (2% and 3% of after-tax earnings of 2011 and 2010, respectively). The estimated amounts were recognized as operating expenses for the years ended December 31, 2012 and 2011. If the estimated amounts differ from the amounts approved by the stockholders, the difference is recognized as income or expenses in the following year.
F. The actual distribution of 2011 and 2010 earnings was as stated in the previous paragraph. The difference of $328 between the amounts recognized in 2010 (cash bonus to employees of $38,224 and remunerations to directors and supervisors of $57,335) and the amount resolved
168 ~32~
(20).Treasury stockA. Treasury stocks bought back by the Company:
(a)For the years ended December 31, 2012 and 2011: None.(b)Pursuant to the R.O.C. Securities and Exchange Law, the number of shares bought back as treasury
stock should not exceed 10% of the number of the Company’s issued and outstanding shares and theamount bought back should not exceed the sum of retained earnings, paid-in capital in excess of parvalue and realized capital reserve. Treasury stocks to enhance the Company’s credit rating and thestockholders’equity should be retired within six months of acquisition.
(c)Pursuant to the R.O.C. Securities and Exchange Law, treasury stock should not be pledged ascollateral and is not entitled to dividends before it is reissued to the employees.
B. Stocks of the Company held by its subsidiaries:(a)Effective January 1, 2002, the stocks of the Company held by its subsidiaries are regarded as
treasury stocks. Those treasury stocks should be eliminated from the calculation of theCompany’s weighted-average outstanding shares of EPS.
(b)As of December 31, 2012 and 2011, the total number of the Company’s shares held by itssubsidiaries was 35,014 thousand shares and 31,831 thousand shares with an average book valueof $1.73 and $1.90 (in dollars) per share and market value of $20.70 and $16.20 (in dollars) pershare, respectively.
(21).Deferred income tax and income tax expenseA. Income tax expense and income tax payable are reconciled as follows:
2012 2011Income tax at statutory tax rate 309,156$ 384,807$Tax effect of permanent and temporary differences 151,827)( 410,192)(Tax effect of investment tax credits 41,523)( 6,227)(Tax effect of loss carryforwards 108,021)( 36,889Net change in deferred income tax 20,851)( -Under provision of prior year’s income tax 10,396 -10% tax on unappropriated retained earnings 45,389 14,017Income tax expense 42,719 19,294Under provision of prior year’s income tax 10,396)( -Net change in deferred income tax 20,851 -Prepaid income tax 12,333)( 11,709)(Income tax payable (Note) 40,841$ 7,585$Note: Income tax payable 42,477$ 9,039$
Income tax refundable 1,636)( 1,454)(Income tax payable, net 40,841$ 7,585$
For the years ended December 31,
by the stockholders was adjusted in the statement of income of 2011. There was no difference for 2011.
(20) Treasury stockA. Treasury stocks bought back by the Company:
(a) For the years ended December 31, 2012 and 2011: None.(b) Pursuant to the R.O.C. Securities and Exchange Law, the number of shares bought back
as treasury stock should not exceed 10%of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital reserve. Treasury stocks to enhance the Company’s credit rating and the stockholders’ equity should be retiredwithin sixmonths of acquisition.
(c) Pursuant to the R.O.C. Securities and Exchange Law, treasury stock should not be pledged as collateral and is not entitled to dividends before it is reissued to the employees.
B. Stocks of the Company held by its subsidiaries: (a) Effective January 1, 2002, the stocks of the Company held by its subsidiaries are regarded
as treasury stocks. Those treasury stocks should be eliminated from the calculation of the Company’s weighted-average outstanding shares of EPS.
(b) As of December 31, 2012 and 2011, the total number of the Company’s shares held by its subsidiaries was 35,014 thousand shares and 31,831 thousand shares with an average book value of $1.73 and $1.90 (in dollars) per share and market value of $20.70 and $16.20 (in dollars) per share, respectively.
(21) Deferred income tax and income tax expenseA. Income tax expense and income tax payable are reconciled as follows:
Prince Housing & Development Corp . Annual Report 2012
169
~33~
The difference between financial income and taxable income is mainly due to the tax-exemptincome of land.
B. Details of temporary differences, loss carryforwards and investment rax credits resulting indeferred income tax assets and liabilities are as follows:
C. As of December 31, 2012, unused loss carryforwards amounted to $257,299, which will expirefrom 2016 to 2022.
D. As of December 31, 2012, the Company’s investment tax credits consisted of the following:
E. As of December 31, 2012 and 2011, the imputation tax credit account balance amounted to $43,935and $1,777, respectively. The Company distributed unappropriated earnings in 2011 and 2010 asdividends in accordance with the resolution adopted at the stockholders’ meeting on June 20, 2012 andJune 17, 2011, respectively. The 2012 and 2011creditable ratio were 2.73% and 0.16%, respectively.The 2012 estimated creditable ratio was 1.86%. The amount of deductible tax distributable by theCompany to its shareholders shall be limited to an amount not exceeding the amount of the imputationtax credit account balance on the date of distribution of the dividends. Accordingly, the actualcreditable ratio for the distribution of 2012 undistributed earnings will be based on the imputation taxcredit account balance up to the date of distribution of the dividends.
F. As of December 31, 2012, the Company’s income tax returns through 2011 have been assessed bythe Tax Authority and there were no disputes existing between the Company and the Tax Authority.
Current: Amount Tax effect Amount Tax effectTemporary difference:Employee benefits 1,200$ 204$ 2,280$ 388$Loss carryforwards 117,852 20,035 - -Less: Valuation allowance - 388)(
20,239$ -$Non-Current:
Temporary difference:Employee benefits 3,600$ 612$ 4,800$ 816$Loss on investment 3,496 594 - -Loss carryforwards 1,395,637 237,264 3,470,973 590,065Investment tax credits - 92,625 - 14,148
331,095 605,029Less: Valuation allowance 330,483)( 605,029)(
612$ -$
December 31, 2012 December 31, 2011
RegulationQualifying
itemTotal taxcredits
Unusedtax credits
Final year taxcredits are due
Act for Promotion of PrivateParticipation in Infrastructure Projects Investment 120,000$ 92,625$ 2016
The difference between financial income and taxable income is mainly due to the tax-exemptincome of land.
B. Details of temporary differences, loss carryforwards and investment rax credits resulting in deferred income tax assets and liabilities are as follows:
~33~
The difference between financial income and taxable income is mainly due to the tax-exemptincome of land.
B. Details of temporary differences, loss carryforwards and investment rax credits resulting indeferred income tax assets and liabilities are as follows:
C. As of December 31, 2012, unused loss carryforwards amounted to $257,299, which will expirefrom 2016 to 2022.
D. As of December 31, 2012, the Company’s investment tax credits consisted of the following:
E. As of December 31, 2012 and 2011, the imputation tax credit account balance amounted to $43,935and $1,777, respectively. The Company distributed unappropriated earnings in 2011 and 2010 asdividends in accordance with the resolution adopted at the stockholders’ meeting on June 20, 2012 andJune 17, 2011, respectively. The 2012 and 2011creditable ratio were 2.73% and 0.16%, respectively.The 2012 estimated creditable ratio was 1.86%. The amount of deductible tax distributable by theCompany to its shareholders shall be limited to an amount not exceeding the amount of the imputationtax credit account balance on the date of distribution of the dividends. Accordingly, the actualcreditable ratio for the distribution of 2012 undistributed earnings will be based on the imputation taxcredit account balance up to the date of distribution of the dividends.
F. As of December 31, 2012, the Company’s income tax returns through 2011 have been assessed bythe Tax Authority and there were no disputes existing between the Company and the Tax Authority.
Current: Amount Tax effect Amount Tax effectTemporary difference:Employee benefits 1,200$ 204$ 2,280$ 388$Loss carryforwards 117,852 20,035 - -Less: Valuation allowance - 388)(
20,239$ -$Non-Current:
Temporary difference:Employee benefits 3,600$ 612$ 4,800$ 816$Loss on investment 3,496 594 - -Loss carryforwards 1,395,637 237,264 3,470,973 590,065Investment tax credits - 92,625 - 14,148
331,095 605,029Less: Valuation allowance 330,483)( 605,029)(
612$ -$
December 31, 2012 December 31, 2011
RegulationQualifying
itemTotal taxcredits
Unusedtax credits
Final year taxcredits are due
Act for Promotion of PrivateParticipation in Infrastructure Projects Investment 120,000$ 92,625$ 2016
C. As of December 31, 2012, unused loss carryforwards amounted to $257,299, which will expire from 2016 to 2022.
D. As of December 31, 2012, the Company’s investment tax credits consisted of the following:
E. As of December 31, 2012 and 2011, the imputation tax credit account balance amounted to $43,935 and $1,777, respectively. The Company distributed unappropriated earnings in 2011 and 2010 as dividends in accordance with the resolution adopted at the stockholders’meeting on June 20, 2012 and June 17, 2011, respectively. The 2012 and 2011creditable ratio were 2.73% and 0.16%, respectively. The 2012 estimated creditable ratio was 1.86%. The amount of deductible tax distributable by the Company to its shareholders shall be limited to an amount not exceeding the amount of the imputation tax credit account balance on the date of distribution of the dividends. Accordingly, the actual creditable ratio for the distribution of 2012 undistributed earnings will be based on the imputation tax credit account balance up to the date of distribution of the dividends.
F. As of December 31, 2012, the Company’s income tax returns through 2011 have been assessed by the TaxAuthority and there were no disputes existing between the Company and the TaxAuthority.
170
(22) Earnings per share
~34~
(22).Earnings per share
A. The above weighted-average outstanding common shares have been adjusted retroactively inproportion to retained earnings as of December 31, 2010.
B. Effective January 1, 2008, as employees’ bonus could be distributed in the form of stock, thediluted EPS computation shall include those estimated shares that would be increased fromemployees’ stock bonus issuance in the calculation of the weighted-average number of commonshares outstanding during the reporting year, which taking into account the dilutive effects ofstock bonus on potential common shares; whereas, basic EPS shall be calculated based on theweighted-average number of common shares outstanding during the reporting year that includethe shares of employees’ stock bonus for the appropriation of prior year earnings, which havealready been resolved at the stockholders’ meeting held in the reporting year. Sincecapitalization of employees’ bonus no longer belongs to distribution of stock dividends (or
Weighted averagenumber of shares
outstanding duringthe year
Before tax After tax (in thousands) Before tax After taxBasic earnings per share
Net income 1,828,649$ 1,785,930$ 1,159,462 1.57$ 1.54$Dilutive effect of common
stock equivalents:
Employees' bonus - - 1,723Diluted earnings per share
Consolidated net income plusdilutive effect of commonstock equivalents 1,828,649$ 1,785,930$ 1,161,185$ 1.57$ 1.54$
2012
Amount Earnings per share (in dollars)
Weighted averagenumber of shares
outstanding duringthe year
Before tax After tax (in thousands) Before tax After tax
Basic earnings per share
Net income 2,333,425$ 2,314,131$ 1,159,462 2.01$ 1.99$Dilutive effect of common
stock equivalents:
Employees' bonus - - 3,211
Diluted earnings per shareConsolidated net income plus
dilutive effect of commonstock equivalents 2,333,425$ 2,314,131$ 1,162,673$ 2.01$ 1.99$
2011
Amount Earnings per share (in dollars)
A. The above weighted-average outstanding common shares have been adjusted retroactively in proportion to retained earnings as of December 31, 2010.
B. Effective January 1, 2008, as employees’ bonus could be distributed in the form of stock, the diluted EPS computation shall include those estimated shares that would be increased from employees’ stock bonus issuance in the calculation of the weighted-average number of common shares outstanding during the reporting year, which taking into account the dilutive effects of stock bonus on potential common shares; whereas, basic EPS shall be calculated based on the weighted-average number of common shares outstanding during the reporting year that include the shares of employees’ stock bonus for the appropriation of prior year earnings, which have already been resolved at the stockholders’ meeting held in the reporting year. Since capitalization of employees’ bonus no longer belongs to distribution of stock dividends (or retained earnings and capital reserve capitalized), the calculation of basic EPS and diluted EPS for all periods presented shall not be adjusted retroactively. However, the accounting treatment for the appropriation of employees’ bonus for 2007 earnings resolved
Prince Housing & Development Corp . Annual Report 2012
171
at the stockholders’ meeting held in 2008 is still in accordance with the regulations on capitalization of employees’ bonus under paragraphs 19 and 39 of R.O.C. SFAS No. 24, “Earnings per Share”.
(23) Personnel expenses, depreciation and amortizationPersonnel expenses, depreciation and amortization are summarized as follows:
~35~
retained earnings and capital reserve capitalized), the calculation of basic EPS and diluted EPSfor all periods presented shall not be adjusted retroactively. However, the accounting treatmentfor the appropriation of employees’ bonus for 2007 earnings resolved at the stockholders’meeting held in 2008 is still in accordance with the regulations on capitalization of employees’bonus under paragraphs 19 and 39 of R.O.C. SFAS No. 24, “Earnings per Share”.
(23).Personnel expenses, depreciation and amortization
Personnel expenses, depreciation and amortization are summarized as follows:
Operating costs Operating expenses TotalPersonnel expenses:
Salaries 852,525$ 724,155$ 1,576,680$Insurance 58,391 54,436 112,827Pension 32,321 36,400 68,721Others 22,680 46,378 69,058
965,917$ 861,369$ 1,827,286$Depreciation 274,940$ 182,744$ 457,684$Amortization 7,219$ 1,781$ 9,000$
For the year ended December 31, 2012
Operating costs Operating expenses TotalPersonnel expenses:
Salaries 778,881$ 740,269$ 1,519,150$Insurance 46,707 50,723 97,430Pension 26,183 37,790 63,973Others 19,604 32,324 51,928
871,375$ 861,106$ 1,732,481$Depreciation 313,166$ 146,757$ 459,923$Amortization 5,587$ 3,367$ 8,954$
For the year ended December 31, 2011
172~36~
5. RELATED PARTY TRANSACTIONSA. Names of related parties and their relationship with the Company
B. Significant transactions and balances with related partiesa. Sales
(a)On July 8, 2009, the Company signed a house sale contract with the spouse of its chairman, Ms.Chung, Wu-Chuan, in the amount of $270,060. The Company recognized sale revenue for thiscontract on a percentage-of-completion basis, amounting to $50,530 and $87,760, for the yearsended December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011,accumulated sales revenue recognized for this contract on a percentage-of-completion basisamounted to $265,944 and $215,414, respectively. The sale terms of this contract are notsignificantly different from other sale contracts of the same building transaction.
(b)
Names of related parties Relationship with the CompanyAmida Trustlink Assets Management
Co., Ltd. (Amida Trustlink Assets)Subsidiary accounted for under the equity method
Uni-President Development Corp.(Uni-President Development)
Subsidiary accounted for under the equity method
Ming-Da Enterprise Co., Ltd.(Ming-Da Enterprise)
Subsidiary accounted for under the equity method
Chuang, Nan-Tien The Company’s chairman
Hsieh, Ming-Fan The Company’s general manager
Chung, Wu-Chuan The Chairman’s spouse
Percentage Percentage
Amount of net sales Amount of net sales
Ming-Da Enterprise 210,573$ 1$ 8,031$ -$Uni-President Development 31,468)($ - 285,968$ 2
179,105$ 1$ 293,999$ 2$
For the years ended December 31,
2012 2011
5. RELATED PARTY TRANSACTIONS
A. Names of related parties and their relationship with the Company
~36~
5. RELATED PARTY TRANSACTIONSA. Names of related parties and their relationship with the Company
B. Significant transactions and balances with related partiesa. Sales
(a)On July 8, 2009, the Company signed a house sale contract with the spouse of its chairman, Ms.Chung, Wu-Chuan, in the amount of $270,060. The Company recognized sale revenue for thiscontract on a percentage-of-completion basis, amounting to $50,530 and $87,760, for the yearsended December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011,accumulated sales revenue recognized for this contract on a percentage-of-completion basisamounted to $265,944 and $215,414, respectively. The sale terms of this contract are notsignificantly different from other sale contracts of the same building transaction.
(b)
Names of related parties Relationship with the CompanyAmida Trustlink Assets Management
Co., Ltd. (Amida Trustlink Assets)Subsidiary accounted for under the equity method
Uni-President Development Corp.(Uni-President Development)
Subsidiary accounted for under the equity method
Ming-Da Enterprise Co., Ltd.(Ming-Da Enterprise)
Subsidiary accounted for under the equity method
Chuang, Nan-Tien The Company’s chairman
Hsieh, Ming-Fan The Company’s general manager
Chung, Wu-Chuan The Chairman’s spouse
Percentage Percentage
Amount of net sales Amount of net sales
Ming-Da Enterprise 210,573$ 1$ 8,031$ -$Uni-President Development 31,468)($ - 285,968$ 2
179,105$ 1$ 293,999$ 2$
For the years ended December 31,
2012 2011
B. Significant transactions and balances with related partiesa. Sales
(a) On July 8, 2009, the Company signed a house sale contract with the spouse of its chairman, Ms. Chung, Wu-Chuan, in the amount of $270,060. The Company recognized sale revenue for this contract on a percentage-of-completion basis, amounting to $50,530 and $87,760, for the years ended December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011, accumulated sales revenue recognized for this contract on a percentage-of-completion basis amounted to $265,944 and $215,414, respectively. The sale terms of this contract are not significantly different from other sale contracts of the same building transaction.
(b)
Prince Housing & Development Corp . Annual Report 2012
173
As of December 31, 2012 and 2011, status of the construction of the related party undertaken by Ta-Chen Construction & Engineering Corp. was as follows:
~37~
As of December 31, 2012 and 2011, status of the construction of the related party undertakenby Ta-Chen Construction & Engineering Corp. was as follows:
c. Accounts receivable
d.On June 20, 2006, the Company and CHINA METAL PRODUCTS CO., LTD (“A party”) jointlysigned a creditor’s rights transfer contract with AMIDA TRUSTLINK ASSETS MANAGEMENTCO., LTD. (“B party”). Under the contract, the Company and A party should pay $2,100,000 each(totaling $4,200,000) to jointly acquire whole creditor’s rights of mortgages, security interests andother dependent claims (collectively referred herein as the creditor’s rights) on the Splendor HotelTaichung Building, and each bears 50% rights and obligations of this acquisition; when allcreditor’s rights of this object turn into property rights, the Company and A party should pay Bparty totaling $1,000,000 as the cost and reward of B party for it is entrusted with the task to helpturn the creditor’s rights as stated above into property rights, but any excess cost over $1,000,000if incurred on this task shall be borne by B party on its own; the Company should pay B party$300,000 before June 30, 2006, and the Company and A party should jointly issue a promissorynote of $1,800,000 to B party on the signing date; payment should be done before July 15, 2006.The title to the creditor’s rights as stated above had been transferred to the Company and A partyon August 2, 2006. On December 29, 2006, the Company and A party signed an additionalcontract following the original contract with B party to raise total acquisition price of thecreditor’s rights to $4,750,000 (the Company and A party bear 50% of the price each). As of
Uni-President Development 2012 2011
4,611,634$ 4,833,457$Construction payments received 4,580,097)( 4,474,573)(
Construction payments receivable 31,537$ 358,884$
Ming-Da Enterprise
292,642$ 8,030$Construction payments received 190,809)( 5,168)(
Construction payments receivable 101,833$ 2,862$
December 31,
Total amount of construction contractsthat were signed but had not been settled yet
Total amount of construction contractsthat were signed but had not been settled yet
Amount % Amount %Chung, Wu-Chuan 185,560$ 8 -$ -Uni-President Development 36,608 2 95,031 8Ming-Da Enterprise 18,021 - - -
240,189$ 10 95,031$ 8
December 31,2012 2011
c. Accounts receivable
d. On June 20, 2006, the Company and CHINA METAL PRODUCTS CO., LTD (“A party”) jointly signed a creditor’s rights transfer contract with AMIDATRUSTLINK ASSETS MANAGEMENT CO., LTD. (“B party”). Under the contract, the Company and A party should pay $2,100,000 each (totaling $4,200,000) to jointly acquire whole creditor’s rights of mortgages, security interests and other dependent claims (collectively referred herein as the creditor’s rights) on the Splendor Hotel Taichung Building, and each bears 50% rights and obligations of this acquisition; when all creditor’s rights of this object turn into property rights, the Company and A party should pay B party totaling $1,000,000 as the cost and reward of B party for it is entrusted with the task to help turn the creditor’s rights as stated above into property rights, but any excess cost over $1,000,000 if incurred on this task shall be borne by B party on its own; the Company should pay B party $300,000 before June 30, 2006, and the Company and A party should jointly issue a promissory note of $1,800,000 to B party on the signing date; payment should be done before July 15, 2006. The title to the creditor’s rights as stated above had been transferred to the Company and A party on August 2, 2006. On December 29, 2006, the Company and A party signed an additional contract following the original contract with B party to raise total acquisition price of the creditor’s rights to $4,750,000 (the Company and A party bear 50% of the price each). As of December 31, 2012, the Company had paid its price.
e. Certain short and long-term loans of the Company were guaranteed by its chairman, Chuang, Nan-Tien, and general manager, Hsieh, Ming-Fan.
174
~38~
December 31, 2012, the Company had paid its price.e. Certain short and long-term loans of the Company were guaranteed by its chairman, Chuang,
Nan-Tien, and general manager, Hsieh, Ming-Fan.f. Salaries/rewards information of key management
Note:(a) Salaries and bonuses include regular wages, special responsibility allowances, pensions,
severance pay, various bonuses, rewards, etc.(b) Service execution fees include travel or transportation allowances, special expenditures,
various allowances, housing and vehicle benefit, etc.(c) Directors' and supervisors' remuneration and employees' bonuses were those amounts
estimated and accrued in the statement of income for the current year.
2012 2011Salaries and bonuses 115,140$ 100,845$
Service execution fees 6,480 6,710
Directors' and supervisors' remuneration and 47,460 62,482employees' bonus
169,080$ 170,037$
f. Salaries/rewards information of key management
Note:(a) Salaries and bonuses include regular wages, special responsibility allowances, pensions,
severance pay, various bonuses, rewards, etc.(b) Service execution fees include travel or transportation allowances, special expenditures,
various allowances, housing and vehicle benefit, etc.(c) Directors' and supervisors' remuneration and employees' bonuses were those amounts
estimated and accrued in the statement of income for the current year.
Prince Housing & Development Corp . Annual Report 2012
175
~39~
6. PLEDGED ASSETSThe details of pledged assets were as follows:
7. COMMITMENTS AND CONTINGENT LIABILITIESA. According to the sale contracts, the Company should provide warranty on the house structure and
major facilities for one year from the handover day for the houses it sold. However, any damage tothe houses caused by disasters, additions to the houses made by the buyers, or events that are notattributed to the Company is not included in the scope of warranty.
B. Information on the commitments of the Company on investments and related share capitalpayment status is described in Note 4(7).
C. As of December 31, 2012 and 2011, the real estate sale contracts which were signed by theCompany and buyers but wherein the ownership of the real estate had not been transferred to thebuyers both amounted to $483,321; payments already made for those contracts both amounted to$471,166; and future payments required from the buyers under those contracts both amounted to
Pledged asset 2012 2011 PurposeDemand deposits, certificate of
deposit and checking deposit(shown as "other financial assets -current" and "other financialassets - non-current")
1,963,973$ 920,884$ To obtain a higher credit for client,performance gurantee, constructionperformance gurantee, short-term andlong-term loans, short-term commercialpapers issue, member reward pointsand gift coupons trust account
Financial assets at fair valuethrough profit or loss - current
154,391 256,195 Construction performance guarantees,short-term and long-term loans
Land held for construction 7,087,276 8,632,631 Short-term loans, notes and bills payableand long-term loans
Prepayment for land purchases 146,789 526,209 Short-term loans, notes and bills payable
Buildings and land held for sale 330,592 15,330 Short-term loans, notes and bills payable
Available-for-sale financial assets 1,282,523 843,516 Short-term loans, notes and bills payable
Financial assets carried at cost 575,426 575,426 Short-term loans, notes and bills payable
Long-term equity investmentsaccounted for under the equity
method
1,192,440 203,443 Short-term loans, notes and bills payable
Investments in real estate 162,426 162,426 Short-term loans, notes and bills payable andlong-term loans
Land 4,402,493 4,366,081 Construction performance gurantee,short-term loans, notes and bills payableand long-term loans
Buildings 2,481,091 2,142,808 Short-term loans, notes and bills payable andlong-term loans
Property held for lease 4,598,727 4,296,762 Construction performance gurantee,short-term loans, notes and bills payableand long-term loans
24,378,147$ 22,941,711$
Book value
December 31,
6. PLEDGED ASSETS
The details of pledged assets were as follows:
7. COMMITMENTS AND CONTINGENT LIABILITIES
A. According to the sale contracts, the Company should provide warranty on the house structure and major facilities for one year from the handover day for the houses it sold. However, any damage to the houses caused by disasters, additions to the houses made by the buyers, or events that are not attributed to the Company is not included in the scope of warranty.
B. Information on the commitments of the Company on investments and related share capital payment status is described in Note 4(7).
C. As of December 31, 2012 and 2011, the real estate sale contracts which were signed by the Company and buyers but wherein the ownership of the real estate had not been transferred to the buyers both amounted to $483,321; payments already made for those contracts both amounted to $471,166; and future payments required from the buyers under those contracts both amounted to $12,155.
176
D. On March 17, 2005, the Company (“A party”) signed a contract with National Taiwan University (“B party”) relating to the construction and operation of dormitories in Changxing St. Campus and Shuiyuan Campus. The major terms of the contract are as follows:(a) Under the contract, B party should be responsible for acquiring the ownership or land-use
right for this project, and let A party use the land; A party must complete the construction within 3 years from the registration of the superficies, and may operate the dormitories for 44 years, (the Company reached an agreement with B party that the operating period be changed from the original 32 years to 44 years), collect dormitory rentals and use fees of other facilities from students, and should return the related assets to B party on the expiry of the contract.
(b) A party should give B party a performance guarantee of $60,000 for the construction on the signing date and $30,000 for operations before the start of operation. As of December 31, 2012 and 2011, A party had provided performance guarantee with a guarantee letter issued by the bank, both amounting to $30,000.
(c) A party should pay B party land rentals from the registration of the superficies, according to the terms of the contract, and pay B party operating royalties from the third year of the operation, based on 0.5% of dormitory rentals and use fees of other facilities collected from students.
(d) Terms of restrictions for A party:i) The ratio of A party’s own capital utilized in this project to total construction cost of this
project should be at least 30%;ii) During the operation period, the ratio of shareholders’ equity to total assets should be at
least 25%; and current ratio (current assets/current liabilities) should be at least 100%;iii) All rights acquired by A party under the contract, except other conditions specified in
the contract and approved by B party, should not be transferred, leased, registered as a liability/obligation or become an executed object of civil litigation.
E. On May 10, 2005, the Company (“A party”) signed a contract with National Cheng Kung University (“B party”) relating to the construction and operation of student dormitories and alumni hall. The major terms of the contract are as follows:(a) Under the contract, B party should be responsible for acquiring the ownership or land-use
right for this project, and let A party use the land by way of registration of the superficies; A party must obtain the user license within 3 years after the signing date, and may operate the student dormitories and motorcycle parking lots for 35 years from the start of operation and collect dormitory rentals and use fees of other facilities from students for 50 years from the start of construction, and should return the related assets to B party on the expiry of the contract.
(b) A party should give B party performance guarantee of $50,000 for this project on the signing date, which will be returned in installment according to the contractual terms. As of December 31, 2012 and 2011, A party had provided performance guarantee with a guarantee letter issued by the bank, both amounting to $20,000.
(c) During the operation period, A party should pay B party dormitory operating royalties based on 2% of annual operating revenue of the dormitories and auxiliary facilities operating royalties based on 4% of annual operating revenue of the auxiliary facilities. A party should pay such operating royalties for prior year before the end of June every year. Further,
Prince Housing & Development Corp . Annual Report 2012
177
according to the superficies contract signed by the two parties, A party should pay B party land rentals from the registration of superficies.
(d) All rights acquired by A party under the contract, except other conditions specified in the contract and approved by B party, should not be transferred, leased, registered as a liability/obligation or become an executed object of civil litigation.
F. The Company signed a syndicated loan contract with 9 banks - Ta Chong Bank as the lead bank for a credit line of $2.5 billion. The syndicated loans include medium-term (secured) loans, commercial paper guarantees and long-term (secured) loans. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company’s audited annual consolidated financial statements. If the Company violates the above financial commitments, it might be requested to stop drawing down all or part of the loans, and all or part of the loans might be asked to mature early, as resolved by the majority of the consortium.
G. The Company signed a syndicated loan contract with 7 banks - Mega International Commercial Bank as the lead bank for a credit line of $2.16 billion. The syndicated loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of dormitories in Changxing St. Campus and Shuiyuan Campus of National Taiwan University. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company’s audited annual consolidated financial statements. If the Company violates the above financial commitments, it shall improve its financial position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the managing bank confirms that its financial position has improved completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25% per annum from the notification date of the managing bank to the completion date of financial improvement or to the date the Company gains the relief from the consortium for its violation.
H. The Company signed a loan contract with Mega International Commercial Bank for a credit line of $785 million. The loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of student dormitories and alumnus hall of National Cheng Kung University. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year. Current ratio and liability ratio shall be reviewed based on the Company’s audited annual consolidated financial statements, and interest coverage based on the Company’s revenue and expenditure table for the related project. If the Company violates the above financial commitments, it shall improve its financial position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the bank confirms that its financial position has improved completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25% per annum from the notification date of the bank to the completion date of financial improvement or to the date the Company obtains a waiver from the bank for its violation.
I. The Company signed a syndicated loan contract with 9 banks - Mega International Commercial Bank as the lead bank for a credit line of $3.6 billion. The syndicated loans are medium-term
178
(secured) loans. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company’s audited annual consolidated financial statements. If the Company violates the above financial commitments, it shall improve its financial position before June 30 of the year when it presents the underlying financial statements; it would not be regarded as a default if the Company’s semiannual consolidated financial statements of that year reviewed by independent auditors show that the financial ratios/restrictions conform to the commitments. In case of violation, interest on the loans would be charged at the loan rate of 0.80% per annum from the notification date of the managing bank to the completion date of financial improvement or to the date the Company obtains a waiver from the consortium for its violation.
J. On May 18, 2007, the Company signed a contract with Taiwan Sugar Corporation (“TSC”) in relation to cooperative construction of houses. According to the contract, TSC shall provide Lot Nos. 12-12 and 601-1, Guo-An Sec., Xitun District, Taichung City and Lot No. 44, He-Guan Sec., Annan District, Tainan City; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to $1,810,889 and $927,889, respectively, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to $181,090 and $92,780, respectively, on the signing date, which will be returned in installments according to the contractual terms. As of December 31, 2012 and 2011, the Company had provided performance guarantee with a guarantee letter of the bank amounting to $181,090, $0 and $181,090, $24,160, respectively. The development of Lot No. 44, He-Guan Sec., Annan District, Tainan City has been postponed because of the consideration of capital planning, as approved by TSC. According to the Nan-Tu-Kai-Zi Letter No. 0980001113 of Tainan Office of TSC, the Company shall pay compensation fee amounting to $6,344 for this postponed development. The Company had paid such fee in 2010.
K. On July 11, July 22 and September 2, 2011, the Company signed a contract with Taiwan Sugar Corporation (“TSC”) in relation to cooperative construction of houses. According to the contracts, TSC shall provide Lot Nos. 11 and 12, Ming-Ding Sec., Fongshan District, Kaohsiung City and Lot Nos. 48 and 51, Hou-Bi-Tian Sec., Ciaotou District, Kaohsiung City and Lot Nos. 117 and 118, Qiao-Zhong Sec., Ciaotou District, Kaohsiung City, respectively; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to $273,680, $634,880 and $157,960, respectively, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to $27,370, $63,480 and $15,790, respectively, on the signing date, which will be returned in installments according to the contractual terms. As of December 31, 2012, the Company had provided such performance guarantee with guarantee letter of the bank amounting to $27,370,$63,480, $0and $27,370, $63,480, $15,790, respectively.
L. The Company signed an agreement with Mr. Tsai Shuei-Pin on July 12, 2012 for joint construction of houses. Under those agreements, Mr. Tsai Shuei-Pin, the owner of land, shall provide the land located at No. 52 Yu-Shien Lot, Tai-Pian Dist. Taichung City, and the Company is responsible for the construction; the houses built would be allocated to both sides based on the specified
Prince Housing & Development Corp . Annual Report 2012
179
proportion. In addition, the Company shall give performance bond in the amount $83,930, which would be returned to the Company in installments. As of December 31, 2012 and 2011, balance of the performance bond was $83,930 and $66,000, respectively.
M. The Company signed an agreement with Mr. Fang Tsai-Yuan and World Vision United Co., Ltd. on March 5, 2012 and July 17, 2012, respectively, for joint construction of houses. Under those agreements,Mr. Fang Tsai-Yuan andWorld Vision United Co., Ltd., the owners of land, shall provide the land located at Nos. 572 and 602, Sec. Zhi-Shan 1, Shilin District, Taipei City, respectively, and the Company is responsible for the construction; the houses built up would be allocated to both sides based on the specified proportion. In addition, the Company shall give performance bond in the amount of $350,000 and $19,570 to Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., respectively, which would be returned to the Company in installments. As of December 31, 2012, balance of the performance bond was $350,000 and $19,570, respectively.
N. As of December 31, 2012 and 2011, performance guarantee letters issued for construction undertaking, warranty and leases of subsidiary, Ta-Chen Construction & Engineering Corp., amounted to $1,339,546 and $1,485,232, respectively.
O. Subsidiary, Ta-Chen Construction & Engineering Corp., undertook the construction of Kaohsiung Rapid Transit Corporation and subcontracted the red line CR2 section utility environmental control project to TECO Electric and Machinery Co., Ltd. on January 20, 2003. TECO Electric and Machinery Co., Ltd. claimed that as the prices relating to construction rose considerably one year after the start of this project, it had the right to ask for additional project payments from Ta-Chen Construction & Engineering Corp. in accordance with Article 227-2 of Civil Code and the original evidence letters 4 & 5, in which TECO Electric and Machinery Co., Ltd. claimed that the two sides had had the agreement on additional project payments. Therefore, TECO Electric and Machinery Co., Ltd. filed a civil lawsuit for the dispute and asked for payments from Ta-Chen Construction & Engineering Corp. amounting to $83,891. On March 3, 2010, TECO Electric and Machinery Co., Ltd. revised the payments asked for to $70,894. In December, 2010, the two sides reached an out-of-court settlement that Ta-Chen Construction & Engineering Corp. was not required to give any additional payment. However, in the out-of-court settlement Ta-Chen Construction & Engineering Corp. agreed that for the case a subcontractor of TECO Electric and Machinery Co., Ltd. filed a lawsuit against TECO Electric and Machinery Co., Ltd., asking for additional project payments from TECO Electric and Machinery Co., Ltd. amounting to $122,072, it would subsidize for TECO Electric and Machinery Co., Ltd. as far as 10% of additional project payments (the scope of 10% is limited only to the principal of additional project payments asked for) the subcontractor has the right to ask for after the lawsuit above was finalized or an out-of-court settlement was reached. As the final judgment of the lawsuit has not come out, Ta-Chen Construction & Engineering Corp. did not accrue any losses for this case.
P. Subsidiary, Ta-Chen Construction & Engineering Corp., undertook the construction of Kaohsiung Rapid Transit Corporation and subcontracted the red line CR2 section utility environmental control project to TECO Electric and Machinery Co., Ltd. on January 20, 2003. TECO Electric and Machinery Co., Ltd. filed a civil lawsuit against Ta-Chen Construction & Engineering Corp., asking for project payments from Ta-Chen Construction & Engineering Corp. amounting to $41,785. In December, 2010, the two sides reached an out-of-court settlement that Ta-Chen Construction & Engineering Corp. shall pay TECO Electric and Machinery Co., Ltd. $25,071 (including taxes) after the lawsuit was withdrawn (such amount was accrued in the financial
180
statements of Ta-Chen Construction & Engineering Corp. and had been paid as of December 31, 2011). The remaining $16,714 would be paid by Ta-Chen Construction & Engineering Corp. according to the contractual terms after Ta-Chen Construction & Engineering Corp. received payments from Kaohsiung Rapid Transit Corporation.
Q. Subsidiary, Ta-Chen Construction & Engineering Corp. (“Ta-Chen”), undertook the project of “The Transbasin Diversion Tunnel of Tsengwen Reservoir”. This project has been stopped by the occurrence of Typhoon Morakot (88 Flood). The Southern Region Water Resources Office, WRA, MOEA (“SRWRO”) has reached an out-of-court settlement with Ta-Chen for part of the litigation and has compensated Ta-Chen $26,300 for additional costs incurred during the stoppage period. While, the loss compensation litigation against SRWRO regarding the contract termination is still on-going.
R. Subsidiary, Ta-Chen Construction & Engineering Corp. (“Ta-Chen”), and Hung-Yi Construction Corp. and Evergreen International Engineering Corp. (collectively referred herein as the joint constructors) jointly undertook the construction of the new office building of the American Institute in Taiwan. As the joint constructors and the owner of this project both claim the counterparty defaulted on the contract, they terminated the contract and referred the dispute to arbitration. Through the first-phase arbitration in USA during September 4, 2012 and November 6, 2012, the arbitral court rendered a decision that the project owner’s reasons to terminate the contract are acceptable. However, the issues on loss compensation and construction payment the project owner was seeking will be put into the second-phase arbitration. The court date of the second-phase arbitration is to be decided by the arbitrators. Ta-Chen has appointed attorneys to handle this case. As this case has not yet gone into the second-phase arbitration, the rights and obligations of both sides have not been confirmed. So Ta-Chen did not accrue any losses for this case.
S. Certain construction contracts undertaken by subsidiary, Ta-Chen Construction & Engineering Corp., specify that default penalty shall be computed according to the contractual terms if the construction is not completed in the prescribed period.
T. As of December 31, 2012 and 2011, subsidiary, The Splendor Hotel Taichung, had signed fixed assets purchase and repair contracts totaling $894,055 and $942,938, respectively; unpaid amount for those contracts was $111,991 and $405,802, respectively.
U. As of December 31, 2012 and 2011, unpaid rental for lease contracts of subsidiary, The Splendor Hotel Taichung, amounted to $15,517 and $13,097, respectively.
V. As of December 31, 2012 and 2011, subsidiary, The Splendor Hotel Taichung, had signed gift coupon performance guarantee contract with banks amounting to $25,689 and $28,581, respectively, of which $25,689 and $28,184, respectively, had been drawn down.
W. On May 27, 2011, subsidiary, The Splendor Hotel Taichung, signed a syndicated loan contract with 3 banks, SinoPac Bank, etc., in the amount of $3.3 billion, with Prince Housing & Development Corp. and China Metal Products Co., Ltd. as guarantors. Under the contract, the subsidiary promised its tangible net equity shall not be negative and current ratio, liability ratio, tangible net equity and interest coverage of Prince Housing & Development Corp. and China Metal Products Co., Ltd. shall conform to certain criteria as specified in the contract. If the subsidiary violates above financial commitments, the managing bank has the right to take the following actions, including but not limited, according to the contract or the resolution of majority of the consortium: 1) request the subsidiary to stop drawing down all or part of the loans; 2) cancel all or part of the
Prince Housing & Development Corp . Annual Report 2012
181
~46~
8. SIGNIFICANT CATASTROPHENone.
9. SUBSEQUENT EVENTSNone.
10. OTHERSA. Financial statement presentation
Certain accounts in the 2011 consolidated financial statements were reclassified to conform withthe 2012 consolidated financial statement presentation.
Year Minimum rental payments
2013 304,625$
2014 383,932
2015 397,174
Total amount from 2016~2020 1,988,896
Total amount from 2021~2025 2,007,266
Total amount from 2026~2030 2,022,655
Total amount from 2031~2035 2,039,824
credit line of the contract which has not been drawn down yet; 3) announce that all outstanding principal, interest and other accrued expenses payable to the consortium in relation to the loan contract should mature immediately; 4) demand the subsidiary’s payment of the promissory note acquired under the loan contract; 5) exercise creditor’s right of mortgage, pledge right, other rights or contract transfer right; 6) exercise other rights given by the laws, the loan contract and other relevant documents; 7) take other actions as resolved by the majority of the consortium.
X. Subsidiary, Time Square International Co., Ltd., has leased offices and operational places by way of operating leases starting from February 14, 2011 with lease term of 25 years. Future minimum payments required under those leases according to the contractual terms are as follows:
8. SIGNIFICANT CATASTROPHE
None.
9. SUBSEQUENT EVENTS
None.
10. OTHERS
A. Financial statement presentationCertain accounts in the 2011 consolidated financial statements were reclassified to conform with the 2012 consolidated financial statement presentation.
182
B. T
he fa
ir va
lues
of t
he fi
nanc
ial i
nstru
men
ts
~47~
B.
The
fair
valu
esof
the
finan
cial
inst
rum
ents
Estim
ated
usin
gEs
timat
edus
ing
Quo
tatio
nsin
ana
valu
atio
nQ
uota
tions
inan
ava
luat
ion
Boo
kva
lue
activ
em
arke
tm
etho
dB
ook
valu
eac
tive
mar
ket
met
hod
Non
-der
ivat
ive
finan
cial
inst
rum
ents
Ass
ets
Fina
ncia
lass
etsw
ithbo
okva
lue
equa
lto
fair
valu
e9,
000,
735
$-
$9,
000,
735
$3,
480,
522
$-
$3,
480,
522
$
Fina
ncia
lass
etsa
tfai
rval
ueth
roug
hpr
ofit
orlo
ss26
0,23
626
0,23
6-
352,
661
352,
661
-
Ava
ilabl
e-fo
r-sa
lefin
anci
alas
sets
-no
n-c
urre
nt1,
581,
087
1,58
1,08
7-
1,01
7,05
51,
017,
055
-
Fina
ncia
lass
etsc
arrie
dat
cost
-no
n-c
urre
nt96
5,95
1-
-1,
034,
854
--
Oth
erfin
anci
alas
sets
-non
-cur
rent
1,13
8,34
3-
1,13
8,34
382
6,05
1-
826,
051
Ref
unda
ble
depo
sits
692,
938
-68
9,42
229
5,13
7-
293,
639
Liab
ilitie
sFi
nanc
iall
iabi
litie
swith
book
valu
eeq
ualt
ofa
irva
lue
11,0
15,2
00-
11,0
15,2
0010
,415
,327
-10
,415
,327
Bon
dspa
yabl
e2,
000,
000
-2,
000,
000
--
-Lo
ng-te
rmlo
ans
13,9
48,8
74-
13,9
48,8
7417
,686
,477
-17
,686
,477
Gua
rant
eede
posi
tsre
ceiv
ed14
1,34
4-
140,
627
156,
957
-15
6,16
1D
eriv
ativ
efin
anci
alin
strum
ents
:Non
e.
Dec
embe
r31,
2012
Dec
embe
r31,
2011
Fair
valu
eFa
irva
lue
Prince Housing & Development Corp . Annual Report 2012
183
The methods and assumptions used to estimate the fair values of financial instruments aresummarized as follows:
(a) The due dates of short-term financial instruments are near the balance sheet date. Accordingly, the fair value of short-term financial instruments are estimated based on the amount at the balance sheet date which include the accounts of cash and cash equivalents, notes and accounts receivable, other receivables, other financial assets-current, short-term loans, notes and bills payable, notes and accounts payable, accrued expenses, and other payables.
(b) The fair value of pledged deposits (shown as “other financial assets - non-current”) is estimated at its book value since its future maturity value will be affected by interest rate changes.
(c) The fair value of refundable deposits is based on the discounted value of expected future cash inflows, which is discounted based on the interest rate of one-year time deposit of the Postal Savings System at December 31, 2012 and 2011.
(d) The fair value of ordinary bonds issued by the Company is based on the present value of expected cash flow amount. The discount rate is the effective interest rate of bonds payable in the current market, whose contractual terms are similar to those of ordinary bonds issued by the Company.
(e) Since long-term liabilities’ interest rates are approximate market interest rates and the discounted value of expected future cash flows are equivalent to the book value, the fair value is estimated at the book value basis.
C. The Company recognized the amount of $564,615 and $740,565 as addition to stockholders’ equity for the changes in fair value of available-for-sale financial assets as of December 31, 2012 and 2011, respectively.
D. As of December 31, 2012 and 2011, the Group’s financial assets subjected to fair value risk due to the change in interest rate amounted to $1,963,973 and $920,884, respectively. The financial liabilities subjected to cash flow risk due to the change in interest rate amounted to $20,261,761 and $25,153,054, respectively.
E. Procedures of financial risk control and hedge The Group’s activities expose it to a variety of financial risks: market risk, credit risk, liquidity
risk and cash flow interest rate risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to hedge certain risk exposures. In order to achieve the goal of risk management, the Group’s hedging activities are concentrated in the market value risk and cash flow risk.
F. Information of financial riska. Equity financial intruments: including financial assets at fair value through profit or loss,
available-for-sale financial assets and financial assets carried at cost.(a) Market risk
The equity financial instruments held by the Group were subject to the fluctuations in market prices. However, since the investment amount was not significant to the Group, it was assessed that the Group was not exposed to significant market risk.
(b) Credit riskFor financial assets at fair value through profit or loss, the Group had carried out the transactions through the Taiwan Stock Exchange and GreTai Securities Market. These
184
transactions are carried out only with counterparties with good credit standing and breaches of agreements is not expected. Thus, the likelihood that credit risk would arise is remote. The Group also assesses the credit ratings of the counterparties when they trade. Thus, thepossibility of default by those parties is low.
(c) Liquidity riskThe equity financial instruments were traded in active markets and it was expected that these financial instruments would be readily sold at amounts approximate to their fair values. In the case of financial assets carried at cost without active market, the liquidity risk is material.
(d) Cash flow risk due to the fluctuation of interest rateThe equity financial instruments held by the Group were not interest-bearing instruments. Thus, the Group was not subject to cash flow risk arising from the fluctuation of the interest rate.
b. Notes and account receivable(a) Market risk
As the notes and accounts receivable held by the Group was due within one year, it was assessed that the Group was not exposed to significant market risk.
(b) Credit riskThe Group’s debtors of receivables have good credit standing and banks would verify debtors’ credit appropriately before they release loans. Therefore, it was assessed that the Group was not exposed to significant credit risk from receivables.
(c) Liquidity riskIt was assessed that Group was not exposed to significant liquidity risk as the Group’s notes and accounts receivable were all due within one year.
(d) Cash flow risk due to the fluctuation of interest rateIt was assessed that theGroup was not exposed to significant cash flow risk due to change in interest rate as the notes and accounts receivable of Group’s receivables were all due within one year.
c. Loans: including short-term loans, short-term notes and bills payable, long-term loans (including current portion).(a) Market risk
Loans of the Group were with floating interest rate and mostly due within one year. Thus, theGroup did not expect to be exposed to significant market risk.
(b) Credit riskThe Group has good credit standing and the transactions with banks were normal. It was assessed that the Group was not exposed to credit risk.
(c) Liquidity riskThe Group’s loans are mostly due within one year, and the cycle of housing construction to receivables is within a year. Thus, the working capital of the Group was considered sufficient to support its funding needs. The Group did not expect to be exposed to significant liquidity risk.
(d) Cash flow risk due to the fluctuation of interest rateLoans of the Group, except bonds payable, are floating interest rate bearing. Thus, theeffective interest rate on the loan fluctuated according to changes in market interest rate. As a result, the future cash flow is expected to fluctuate.
Prince Housing & Development Corp . Annual Report 2012
185
~51~
11.A
DD
ITIO
NA
LD
ISC
LOSU
RES
REQ
UIR
EDBY
THE
SECU
RITI
ESA
ND
FUTU
RES
BURE
AU
(1)R
elat
edin
form
atio
nof
signi
fican
ttra
nsac
tions
Purs
uant
toth
edi
sclo
sure
requ
irem
ents
unde
rthe
Secu
ritie
sand
Exch
ange
Regu
latio
ns,s
igni
fican
ttra
nsac
tions
fort
heye
aren
ded
Dec
embe
r31,
2012
wer
eas
follo
ws:
A.L
oans
toot
hers
attri
bute
dto
finan
cing
activ
ities
asof
Dec
embe
r31,
2012
:
Not
ea:
Then
umbe
rrep
rese
ntst
hena
ture
offin
anci
ngac
tiviti
esas
follo
ws:
1.Tr
adin
gpa
rtner
.2.
Shor
t-ter
mfin
anci
ng.
Not
e1:
Inac
cord
ance
with
the
Com
pany
’sre
late
dre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.
Not
e2:
Inac
cord
ance
with
Prin
ceA
partm
entM
anag
emen
tMai
ntai
nCo
.,Lt
d.re
late
dre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.
Not
e3:
Inac
cord
ance
with
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
rela
ted
regu
latio
ns,t
heto
tala
mou
ntfo
rloa
nis
40%
ofits
netw
orth
.N
ote
4:In
acco
rdan
cew
ithTa
-Che
nCo
nstru
ctio
n&
Engi
neer
ing
Corp
.,Lt
d.re
late
dre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.H
owev
er,t
heto
tala
mou
ntfo
rloa
nca
nnot
exce
ed40
%of
itsne
twor
thfo
rsh
ort-
term
finan
cing
.N
ote
5:A
sofD
ecem
ber3
1,20
12,t
heCo
mpa
nyha
ddr
awn
dow
n$0
.N
ote
6:A
sofD
ecem
ber3
1,20
12,t
heCo
mpa
nyha
ddr
awn
dow
n$1
,195
,615
.N
ote
7:Pr
ince
Prop
erty
Man
agem
entC
o.,L
td.h
adbe
endi
ssol
ved
onO
ctob
er1,
2012
beca
use
ofth
em
erge
rin
the
Gro
up.
Num
ber
Nam
eIte
mV
alue
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Corp
.O
ther
rece
ivab
les-
rela
ted
parti
es50
0,00
0$
500,
000
$2.
72
-$
Add
ition
alop
erat
ing
capi
tal
-$
--
$50
0,00
0$
6,77
9,93
1$
1、5
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Oth
erre
ceiv
able
s-re
late
dpa
rties
500,
000
-2.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
500,
000
6,77
9,93
11
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Hsia
-Hai
re-p
lann
ing
dest
rict,
re-p
lann
ing
com
mitt
ee,R
en-W
uD
istric
t,K
aohs
iung
City
.
Oth
erre
ceiv
able
s1,
350,
000
1,35
0,00
02.
71
1,40
0,00
0N
one
--
-1,
400,
000
6,77
9,93
11、
6
1Pr
ince
Apa
rtmen
tM
anag
emen
tMai
ntai
nC
o.,
Ltd.
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.O
ther
rece
ivab
les-
rela
ted
parti
es15
,000
-2.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
15,0
0027
,141
2、7
2D
ong-
Feng
Ente
rpris
esC
o.,
Ltd.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.O
ther
rece
ivab
les-
rela
ted
parti
es24
0,00
0-
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-17
1,02
417
1,02
43
3Ta
-Che
nC
onstr
uctio
n&
Engi
neer
ing
Corp
.Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Oth
erre
ceiv
able
s-re
late
dpa
rties
500,
000
300,
000
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-50
0,00
047
6,63
64、
5
Not
eA
llow
ance
for
doub
tfula
mou
ntLo
anlim
itpe
rent
ity
Max
imum
amou
ntav
aila
ble
forl
oan
Acc
ount
Endi
ngba
lanc
e
Ass
etsp
ledg
ed
Rea
son
forf
inan
cing
Nam
eof
coun
terp
arty
Max
imun
bala
nce
durin
g20
12In
tere
stra
te
Nat
ure
offin
anci
ngac
tivity
(Not
ea)
Tata
ltra
nsac
tion
amou
nt
11. A
DD
ITIO
NA
L D
ISC
LO
SUR
ES
RE
QU
IRE
D B
Y T
HE
SE
CU
RIT
IES
AN
D F
UT
UR
ES
BU
RE
AU
(1)
Rel
ated
info
rmat
ion
of s
igni
fican
t tra
nsac
tions
Purs
uant
to
the
disc
losu
re r
equi
rem
ents
und
er t
he S
ecur
ities
and
Exc
hang
e R
egul
atio
ns,
sign
ific
ant
trans
actio
ns fo
r the
yea
r end
ed D
ecem
ber 3
1, 2
012
wer
e as
follo
ws:
A.
Loan
s to
oth
ers
attri
bute
d to
fina
ncin
g ac
tiviti
es a
s of
Dec
embe
r 31,
201
2:
~51~
11.A
DD
ITIO
NA
LD
ISC
LOSU
RES
REQ
UIR
EDBY
THE
SECU
RITI
ESA
ND
FUTU
RES
BURE
AU
(1)R
elat
edin
form
atio
nof
signi
fican
ttra
nsac
tions
Purs
uant
toth
edi
sclo
sure
requ
irem
ents
unde
rthe
Secu
ritie
sand
Exch
ange
Regu
latio
ns,s
igni
fican
ttra
nsac
tions
fort
heye
aren
ded
Dec
embe
r31,
2012
wer
eas
follo
ws:
A.L
oans
toot
hers
attri
bute
dto
finan
cing
activ
ities
asof
Dec
embe
r31,
2012
:
Not
ea:
Then
umbe
rrep
rese
ntst
hena
ture
offin
anci
ngac
tiviti
esas
follo
ws:
1.Tr
adin
gpa
rtner
.2.
Shor
t-ter
mfin
anci
ng.
Not
e1:
Inac
cord
ance
with
the
Com
pany
’sre
late
dre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.
Not
e2:
Inac
cord
ance
with
Prin
ceA
partm
entM
anag
emen
tMai
ntai
nCo
.,Lt
d.re
late
dre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.
Not
e3:
Inac
cord
ance
with
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
rela
ted
regu
latio
ns,t
heto
tala
mou
ntfo
rloa
nis
40%
ofits
netw
orth
.N
ote
4:In
acco
rdan
cew
ithTa
-Che
nCo
nstru
ctio
n&
Engi
neer
ing
Corp
.,Lt
d.re
late
dre
gula
tions
,the
tota
lam
ount
forl
oan
is40
%of
itsne
twor
th.H
owev
er,t
heto
tala
mou
ntfo
rloa
nca
nnot
exce
ed40
%of
itsne
twor
thfo
rsh
ort-
term
finan
cing
.N
ote
5:A
sofD
ecem
ber3
1,20
12,t
heCo
mpa
nyha
ddr
awn
dow
n$0
.N
ote
6:A
sofD
ecem
ber3
1,20
12,t
heCo
mpa
nyha
ddr
awn
dow
n$1
,195
,615
.N
ote
7:Pr
ince
Prop
erty
Man
agem
entC
o.,L
td.h
adbe
endi
ssol
ved
onO
ctob
er1,
2012
beca
use
ofth
em
erge
rin
the
Gro
up.
Num
ber
Nam
eIte
mV
alue
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Corp
.O
ther
rece
ivab
les-
rela
ted
parti
es50
0,00
0$
500,
000
$2.
72
-$
Add
ition
alop
erat
ing
capi
tal
-$
--
$50
0,00
0$
6,77
9,93
1$
1、5
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Oth
erre
ceiv
able
s-re
late
dpa
rties
500,
000
-2.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
500,
000
6,77
9,93
11
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Hsia
-Hai
re-p
lann
ing
dest
rict,
re-p
lann
ing
com
mitt
ee,R
en-W
uD
istric
t,K
aohs
iung
City
.
Oth
erre
ceiv
able
s1,
350,
000
1,35
0,00
02.
71
1,40
0,00
0N
one
--
-1,
400,
000
6,77
9,93
11、
6
1Pr
ince
Apa
rtmen
tM
anag
emen
tMai
ntai
nC
o.,
Ltd.
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.O
ther
rece
ivab
les-
rela
ted
parti
es15
,000
-2.
72
-A
dditi
onal
oper
atin
gca
pita
l-
--
15,0
0027
,141
2、7
2D
ong-
Feng
Ente
rpris
esC
o.,
Ltd.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.O
ther
rece
ivab
les-
rela
ted
parti
es24
0,00
0-
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-17
1,02
417
1,02
43
3Ta
-Che
nC
onstr
uctio
n&
Engi
neer
ing
Corp
.Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Oth
erre
ceiv
able
s-re
late
dpa
rties
500,
000
300,
000
2.7
2-
Add
ition
alop
erat
ing
capi
tal
--
-50
0,00
047
6,63
64、
5
Not
eA
llow
ance
for
doub
tfula
mou
ntLo
anlim
itpe
rent
ity
Max
imum
amou
ntav
aila
ble
forl
oan
Acc
ount
Endi
ngba
lanc
e
Ass
etsp
ledg
ed
Rea
son
forf
inan
cing
Nam
eof
coun
terp
arty
Max
imun
bala
nce
durin
g20
12In
tere
stra
te
Nat
ure
offin
anci
ngac
tivity
(Not
ea)
Tata
ltra
nsac
tion
amou
nt
186
~52~
B.E
ndor
sem
ents
and
guar
ante
espr
ovid
eddu
ring
the
year
ende
dD
ecem
ber3
1,20
12:
Not
ea:
An
inve
stee
com
pany
.The
guar
ante
esw
ere
prov
ided
base
don
the
Com
pany
’spr
opor
tiona
tesh
are
inth
ein
vest
eeco
mpa
ny.
Not
e1:
Inac
cord
ance
with
thec
ompa
ny’s
relat
edre
gulat
ions
,thet
otal
amou
ntof
trans
actio
nsof
endo
rsem
ents
and
guar
antee
sand
thel
imit
ofen
dorse
men
tsan
dgu
aran
teesf
oran
ysin
gleo
fthe
nen
tity
is20
%of
thec
ompa
ny’s
netw
orth
.N
ote
2:In
acco
rdan
cew
ithth
eC
ompa
ny’s
rela
ted
regu
latio
ns,t
heto
tala
ccum
ulat
edam
ount
oftra
nsac
tions
ofen
dors
emen
tsan
dgu
aran
tees
cann
otex
ceed
50%
ofth
eC
ompa
ny’s
netw
orth
.N
ote
3:In
acco
rdan
cew
ithTa
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
’sre
late
dre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,5
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$3
,000
,000
.N
ote
4:In
acco
rdan
cew
ithD
ong-
Feng
Ente
rpris
esC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$2,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$4
,000
,000
.N
ote
5:In
acco
rdan
cew
ithPr
ince
Util
ityC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
,000
,000
.N
ote
6:In
acco
rdan
cew
ithJin
-Yi-X
ing
plyw
ood
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$2
,500
,000
,the
tota
lacc
umul
ated
amou
ntis
$5,0
00,0
00.
Not
e7:
Inac
cord
ance
with
Chen
g-Sh
iCon
struc
tion
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$1
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
00,0
00.
Not
e8:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsi
gned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$309
,084
.N
ote
9:En
dors
emen
tsan
dgu
aran
tees
amou
ntis
the
amou
ntof
the
endo
rsem
enta
ndgu
aran
tee
cont
ract
sign
edw
ithth
eba
nk.A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$0
.N
ote
10:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsig
ned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,7
17,7
20.
Not
e11:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,8
10,8
89.
Not
e12:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn$5
40,65
1.
Not
e13:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,246,889.
Num
ber
Nam
eof
endo
rser
sN
ame
ofen
dors
ees
Rel
atio
nshi
pN
ote
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.
Subs
idia
ry3,
389,
965
$1,
200,
000
$1,
200,
000
$-
$7
8,47
4,91
3$
1、2、
8
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Tim
eSq
uare
Inte
rnat
iona
lCo.
,Lt
d.
Subs
idia
ry3,
389,
965
1,10
0,00
090
0,00
0-
58,
474,
913
1、2、
9
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
The
Sple
ndor
Hot
elTa
ichu
ngN
ote
a3,
389,
965
1,93
2,72
01,
932,
720
-11
8,47
4,91
31、
2、10
1Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
500,
000
927,
889
--
-3,
000,
000
3
2D
ong-
Feng
Ente
rpris
esC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
000,
000
1,81
0,88
91,
810,
889
-42
44,
000,
000
4、11
3Pr
ince
Util
ityC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
000,
000
540,
651
540,
651
-96
52,
000,
000
5、12
4Ji
n-Y
i-Xin
gpl
ywoo
dC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
500,
000
1,55
2,88
91,
552,
889
-48
35,
000,
000
6、13
5C
heng
-shi
Con
stru
ctio
nC
o.,L
td.
Prin
ceSe
curit
yC
o.,
Ltd.
Aff
iliat
edco
mpa
ny10
0,00
0-
--
-20
0,00
07
Rat
ioof
accu
mul
ated
amou
ntto
netw
orth
ofth
eco
mpa
ny
Max
imum
amou
ntof
endo
rsem
ent
Endo
rsee
Endo
rsem
entl
imit
fora
sing
leen
tity
Hig
hest
bala
nce
durin
gth
epe
riod
Out
stan
ding
bala
nce
asat
Dec
embe
r31,
2012
Bal
ance
secu
red
byco
llate
ral
B.
Endo
rsem
ents
and
gua
rant
ees
prov
ided
dur
ing
the
year
end
ed D
ecem
ber 3
1, 2
012:
~52~
B.E
ndor
sem
ents
and
guar
ante
espr
ovid
eddu
ring
the
year
ende
dD
ecem
ber3
1,20
12:
Not
ea:
An
inve
stee
com
pany
.The
guar
ante
esw
ere
prov
ided
base
don
the
Com
pany
’spr
opor
tiona
tesh
are
inth
ein
vest
eeco
mpa
ny.
Not
e1:
Inac
cord
ance
with
thec
ompa
ny’s
relat
edre
gulat
ions
,thet
otal
amou
ntof
trans
actio
nsof
endo
rsem
ents
and
guar
antee
sand
thel
imit
ofen
dorse
men
tsan
dgu
aran
teesf
oran
ysin
gleo
fthe
nen
tity
is20
%of
thec
ompa
ny’s
netw
orth
.N
ote
2:In
acco
rdan
cew
ithth
eC
ompa
ny’s
rela
ted
regu
latio
ns,t
heto
tala
ccum
ulat
edam
ount
oftra
nsac
tions
ofen
dors
emen
tsan
dgu
aran
tees
cann
otex
ceed
50%
ofth
eC
ompa
ny’s
netw
orth
.N
ote
3:In
acco
rdan
cew
ithTa
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
’sre
late
dre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,5
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$3
,000
,000
.N
ote
4:In
acco
rdan
cew
ithD
ong-
Feng
Ente
rpris
esC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$2,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$4
,000
,000
.N
ote
5:In
acco
rdan
cew
ithPr
ince
Util
ityC
o.,L
td.r
elat
edre
gula
tions
,the
limit
ofen
dors
emen
tsan
dgu
aran
tees
fora
nysi
ngle
entit
yis
$1,0
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
,000
,000
.N
ote
6:In
acco
rdan
cew
ithJin
-Yi-X
ing
plyw
ood
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$2
,500
,000
,the
tota
lacc
umul
ated
amou
ntis
$5,0
00,0
00.
Not
e7:
Inac
cord
ance
with
Chen
g-Sh
iCon
struc
tion
Co.
,Ltd
.rel
ated
regu
latio
ns,t
helim
itof
endo
rsem
ents
and
guar
ante
esfo
rany
sing
leen
tity
is$1
00,0
00,t
heto
tala
ccum
ulat
edam
ount
is$2
00,0
00.
Not
e8:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsi
gned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$309
,084
.N
ote
9:En
dors
emen
tsan
dgu
aran
tees
amou
ntis
the
amou
ntof
the
endo
rsem
enta
ndgu
aran
tee
cont
ract
sign
edw
ithth
eba
nk.A
sofD
ecem
ber3
1,20
12,t
heC
ompa
nyha
ddr
awn
dow
n$0
.N
ote
10:
Endo
rsem
ents
and
guar
ante
esam
ount
isth
eam
ount
ofth
een
dors
emen
tand
guar
ante
eco
ntra
ctsig
ned
with
the
bank
.Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,7
17,7
20.
Not
e11:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,8
10,8
89.
Not
e12:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn$5
40,65
1.
Not
e13:
Aso
fDec
embe
r31,
2012
,the
Com
pany
had
draw
ndo
wn
$1,246,889.
Num
ber
Nam
eof
endo
rser
sN
ame
ofen
dors
ees
Rel
atio
nshi
pN
ote
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.
Subs
idia
ry3,
389,
965
$1,
200,
000
$1,
200,
000
$-
$7
8,47
4,91
3$
1、2、
8
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Tim
eSq
uare
Inte
rnat
iona
lCo.
,Lt
d.
Subs
idia
ry3,
389,
965
1,10
0,00
090
0,00
0-
58,
474,
913
1、2、
9
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
The
Sple
ndor
Hot
elTa
ichu
ngN
ote
a3,
389,
965
1,93
2,72
01,
932,
720
-11
8,47
4,91
31、
2、10
1Ta
-Che
nC
onst
ruct
ion
&En
gine
erin
gC
orp.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
500,
000
927,
889
--
-3,
000,
000
3
2D
ong-
Feng
Ente
rpris
esC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
000,
000
1,81
0,88
91,
810,
889
-42
44,
000,
000
4、11
3Pr
ince
Util
ityC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny1,
000,
000
540,
651
540,
651
-96
52,
000,
000
5、12
4Ji
n-Y
i-Xin
gpl
ywoo
dC
o.,L
td.
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.Th
eC
ompa
ny2,
500,
000
1,55
2,88
91,
552,
889
-48
35,
000,
000
6、13
5C
heng
-shi
Con
stru
ctio
nC
o.,L
td.
Prin
ceSe
curit
yC
o.,
Ltd.
Aff
iliat
edco
mpa
ny10
0,00
0-
--
-20
0,00
07
Rat
ioof
accu
mul
ated
amou
ntto
netw
orth
ofth
eco
mpa
ny
Max
imum
amou
ntof
endo
rsem
ent
Endo
rsee
Endo
rsem
entl
imit
fora
sing
leen
tity
Hig
hest
bala
nce
durin
gth
epe
riod
Out
stan
ding
bala
nce
asat
Dec
embe
r31,
2012
Bal
ance
secu
red
byco
llate
ral
Prince Housing & Development Corp . Annual Report 2012
187
~53~
C.M
arke
tabl
ese
curit
iesh
eld
asat
Dec
embe
r31,
2012
:
Nam
eof
the
Type
ofR
elat
ions
hip
with
the
Gen
eral
ledg
erC
arry
ing
Perc
enta
geof
com
pany
inve
stm
ent
Nam
eof
inve
stee
com
pani
esC
ompa
nyac
coun
tsN
umbe
rofs
hare
sam
ount
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Hou
sing
&D
evel
opm
entC
orp.
Stoc
kC
heng
-Shi
Inve
stm
entH
oldi
ngsC
o.,
Ltd.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
120,
807,
230
539,
263
$10
0.00
11.2
2$
"Pr
ince
Prop
erty
Man
agem
ent
Con
sulti
ngC
o.,L
td.(f
orm
erly
Prin
ceR
ealE
stat
eA
gent
Co.
,Ltd
.)
""
17,1
46,5
8022
3,90
310
0.00
14.0
8
"G
eng-
Din
gC
o.,L
td.
The
inve
stee
com
pany
acco
unte
dfo
rund
erth
eeq
uity
met
hod
"18
,000
,000
317,
735
30.0
017
.65
3
"Pr
ince
Hou
sing
Inve
stm
entC
o.,L
td.
Subs
idia
ry"
428
312,
282
100.
0078
3,68
0.91
"B
ioSu
nTe
chno
logy
Co.
,Ltd
."
"4,
688,
000
24,1
2310
0.00
4.84
"Pr
ince
Bio
tech
nolo
gyC
o.,L
td.
""
250,
000
2,38
550
.00
9.54
"Pr
ince
Ta-C
hen
Inve
stm
entC
o.,L
td.
""
12,2
70,1
0041
,920
99.9
73.
42"
Don
g-Fe
ngEn
terp
rises
Co.
,Ltd
."
"20
,400
,194
231,
522
100.
0020
.96
"U
ni-P
resi
dent
Dev
elop
men
tCor
p.Th
ein
vest
eeco
mpa
nyac
coun
ted
foru
nder
the
equi
tym
etho
d
"10
8,00
0,00
098
0,70
830
.00
9.08
4
"Th
eSp
lend
erH
otel
Taic
hung
Subs
idia
ry"
97,5
00,0
0038
3,07
850
.00
3.93
"Ti
me
Squa
reIn
tern
atio
nalH
otel
Co.
,Lt
d."
"60
,000
,000
438,
189
100.
007.
30
"Ji
n-Y
i-Xin
gPl
ywoo
dC
o.,L
td.
""
151,
468
661,
381
99.6
52,
120.
19"
Early
Succ
essI
nves
tmen
tsLt
d."
"1,
554,
660
40,5
0610
0.00
26.0
5"
Min
g-D
aEn
terp
rise
Co.
,Ltd
.Th
ein
vest
eeco
mpa
nyac
coun
ted
foru
nder
the
equi
tym
etho
d
"3,
640,
000
132,
453
20.0
014
.85
"Sp
lend
orA
sset
Man
agem
entC
o.,L
td.
Subs
idia
ry"
50,0
0048
750
.00
9.74
"Pr
ince
Ass
etM
anag
emen
tCo.
,Ltd
."
"2,
190
1,24
410
0.00
497.
67"
Nan
tex
Indu
stry
Co.
,Ltd
.N
one
Ava
ilabl
e-fo
r-sa
lefin
anci
alas
sets
-no
n-cu
rren
t
5,83
8,40
210
9,47
0N
ote
118
.75
List
edco
mpa
ny,
Not
e5
"Sc
inoP
harm
Taiw
an,L
td.
""
19,4
02,3
481,
354,
284
Not
e1
69.8
0Li
sted
com
pany
,N
ote
6
Dec
embe
r31,
2012
C.
Mar
keta
ble
secu
ritie
s he
ld a
s at
Dec
embe
r 31,
201
2:
188
~54~
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rel
atio
nshi
pw
ithth
eC
ompa
nyG
ener
alle
dger
acco
unts
Num
bero
fsh
ares
Car
ryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Hou
sing
&D
evel
opm
ent
Cor
p.
Stoc
kSi
mpl
oTe
chno
logy
Co.
,Ltd
.N
one
Ava
ilabl
e-fo
r-sa
lefin
anci
alas
sets
-no
n-cu
rren
t
127,
249
18,5
78$
Not
e1
146.
00$
OTC
com
pany
"A
dvan
ced
Wire
less
Sem
icon
duct
orC
ompa
ny"
"19
7,93
74,
137
Not
e1
20.9
0O
TCco
mpa
ny
"Tr
ade-
Van
Info
rmat
ion
Serv
ice
Co.
,Ltd
."
"85
,535
2,03
6N
ote
123
.80
List
edco
mpa
ny
"A
cthe
rmIn
c."
"45
,224
696
Not
e1
15.4
0O
TCco
mpa
ny"
Gen
ome
Inte
rnat
iona
lBio
med
ical
Co.
,Ltd
."
"1,
311
149
Not
e1
113.
50O
TCco
mpa
ny
"U
nive
rsal
Ven
ture
Cap
ital
Inve
stm
entC
orp.
"Fi
nanc
iala
sset
sca
rrie
dat
cost
-no
n-cu
rren
t
1,40
0,00
014
,000
Not
e1
Not
e2
"Pr
esid
entE
nerg
yD
evel
opm
ent
Ltd.
""
1,27
5,00
036
,989
Not
e1
Not
e2
"Pr
esid
entI
nter
natio
nal
Dev
elop
men
tCor
p."
"87
,745
,770
841,
520
6.63
Not
e2
7
"G
rand
Bill
sFin
ance
Cor
p."
"48
,672
473
Not
e1
Not
e2
"Ji
a-C
heng
Ven
ture
Cap
ital
Inve
stm
entC
o.,L
td.
""
759,
024
-N
ote
1N
ote
2
"Ji
a-H
uaV
entu
reC
apita
lIn
vest
men
tCo.
,Ltd
."
"1,
211,
228
-7.
90N
ote
2
Stoc
kC
hipw
ellT
ech.
Cor
p.N
one
Fina
ncia
lass
ets
carr
ied
atco
st-
non-
curr
ent
887,
970
1,77
6N
ote
1N
ote
2
"Ev
er-M
ove
Tech
nolo
gyC
o.,L
td.
""
15,3
81-
Not
e1
Not
e2
"C
huan
g-Ji
ngTe
chno
logy
Co.
,"
"12
,645
-N
ote
1N
ote
2"
Bao
-Mao
Tech
nolo
gyC
o.,L
td.
""
27,9
33-
Not
e1
Not
e2
"Ji
e-Lu
nTe
chno
logy
Co.
,Ltd
."
"17
,280
-N
ote
1N
ote
2"
Qua
n-M
aoTe
chno
logy
Inc.
""
341,
745
-N
ote
1N
ote
2
Dec
embe
r31,
2012
Prince Housing & Development Corp . Annual Report 2012
189
~55~
Nam
eoft
heco
mpa
nyTy
peof
inve
stmen
tN
ame
ofin
veste
eco
mpa
nies
Rela
tions
hip
with
the
Com
pany
Gen
eral
ledg
erac
coun
tsN
umbe
rofs
hare
sCa
rryin
gam
ount
Perc
enta
geof
com
pany
'sow
ners
hip
Mar
ketv
alue
Not
ePr
ince
Hou
sing
&D
evel
opm
entC
orp.
Stoc
kW
ei-J
unTe
chno
logy
Co.,
Ltd.
Non
eFi
nanc
iala
sset
scar
ried
atco
st-
non-
curre
nt1,
846
-$
Not
e1N
ote
2
"N
anm
atTe
chno
logy
Co.,
Ltd.
""
1,09
9,96
010
,700
5.00
Not
e2
"So
uthe
rnSc
ienc
eJo
intD
evel
opm
ent
Co.,
Ltd.
""
167,
700
1,67
710
.00
Not
e2
"So
uthe
rnSc
ienc
eJo
int
Dev
elop
men
tCo.
,Ltd
.-pr
efer
red
stock
""
2,50
0,00
025
,000
50.0
0N
ote
2
"Ch
ieh-
Chen
gTe
chno
logy
Co.,
Ltd.
""
41,3
43-
Not
e1N
ote
2
Fund
Meg
aD
iam
ond
Mon
eyM
arke
tFun
d"
Fina
ncia
lass
etsa
tfai
rval
ueth
roug
hpr
ofit
orlo
ss-n
on-
6,30
1,40
676
,593
Not
e112
Chen
g-Sh
iInv
estm
ent
Hol
ding
sCo.
,Ltd
.St
ock
Ta-C
hen
Cons
truct
ion
&En
gine
erin
gCo
rp.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stmen
tsac
coun
ted
foru
nder
the
equi
ty12
4,00
0,00
01,
191,
591
100.
009.
61
"Pr
ince
Util
ityCo
.,Lt
d."
"3,
070,
000
56,0
2510
0.00
18.2
5"
Chen
g-Sh
iCon
struc
tion
Co.,
Ltd.
""
10,1
00,0
0010
8,02
710
0.00
10.7
0Ta
-Che
nCo
nstru
ctio
n&
Engi
neer
ing
Corp
."
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pa
rent
com
pany
Fina
ncia
lass
etsa
tfai
rval
ueth
roug
hpr
ofit
orlo
ss-c
urre
nt34
,435
,720
712,
819
Not
e120
.70
"N
ante
xIn
dustr
yCo
.,Lt
d.N
one
"10
,285
,699
192,
857
Not
e118
.75
Fund
Yua
nta
Glo
balR
ealty
&In
frastr
uctu
reA
cc.
""
1,00
0,00
07,
070
Not
e17
Stoc
kTa
Chen
Inte
rnat
iona
l(Br
unei
)Cor
p.Su
bsid
iary
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
erth
eeq
uity
201,
000
2,92
310
0.00
14.5
4
"Pr
ince
Biot
echn
olog
yCo
.,Lt
d.A
ffilia
ted
Com
pany
"22
5,00
02,
147
45.0
09.
54"
Chip
wel
lTec
h.Co
rp.
Non
eFi
nanc
iala
sset
scar
ried
atco
st-
non-
curre
nt1,
113,
000
5,56
5N
ote1
Not
e2
"N
anm
atTe
chno
logy
Co.,
Ltd.
""
1,23
3,60
012
,000
5.56
Not
e2
Dec
embe
r31,
2012
190
~56~
Nam
eof
the
com
pany
Type
ofin
vest
men
tN
ame
ofin
vest
eeco
mpa
nies
Rela
tions
hip
with
the
Com
pany
Gen
eral
ledg
erac
coun
tsN
umbe
rofs
hare
sC
arry
ing
amou
ntPe
rcen
tage
ofco
mpa
ny's
owne
rshi
pM
arke
tval
ueN
ote
Prin
ceH
ousi
ngIn
vestm
entC
o.,
Ltd.
Stoc
kPP
GIn
vest
men
tInc
.Th
ein
vest
eeco
mpa
nyac
coun
ted
foru
nder
the
equi
tym
etho
d
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
er
273
US$
1,96
927
.27
US$
7,21
2
"Q
ueen
Hol
ding
sLtd
."
"2,
730
US$
9,35
227
.27
US$
3,42
6"
Tou
Itsu
Inve
stmen
tsIn
c.N
one
Fina
ncia
lass
ets
carri
edat
cost
-no
n-cu
rrent
600
US$
0.6
15.0
0N
ote
2
Prin
ceTa
-Che
nIn
vestm
entC
o.,
Ltd.
Stoc
kPr
ince
Cap
ital,
Inc.
Subs
idia
ryLo
ng-te
rmeq
uity
inve
stmen
tsac
coun
ted
foru
nder
the
equi
tym
etho
d
12,
640
100.
002,
640
"C
hipw
ellT
ech.
Cor
p.N
one
Fina
ncia
lass
ets
carri
edat
cost
-no
n-cu
rrent
207,
536
913
Not
e1
Not
e2
"D
a-H
ung
Tech
nolo
gyC
o.,L
td.
""
300,
000
-N
ote
1N
ote
2"
Ever
-Mor
eTe
chno
logy
Co.
,Lt
d."
"39
5,89
0-
Not
e1
Not
e2
"C
huan
g-C
hing
Softw
are
Co.,
""
116,
741
819
Not
e1
Not
e2
"Fo
rmos
oftI
nter
natio
nalI
nc.
53,2
5836
6N
ote
1N
ote
2"
Ke-
Ya
Tech
nolo
gyC
o.,L
td.
""
23,1
56-
Not
e1
Not
e2
"Ji
a-Ch
eng
Ven
ture
Cap
ital
Inve
stm
entC
o.,L
td.
""
291,
000
-N
ote
1N
ote
2
"Ji
a-H
uaV
entu
reC
apita
lIn
vest
men
tCo.
,Ltd
."
"48
0,00
0-
Not
e1
Not
e2
"Q
uan-
Mao
Tech
nolo
gyIn
c."
"9,
897
-N
ote
1N
ote
2"
Jie-
Chen
gTe
chno
logy
Co.
,Ltd
."
"41
,434
-N
ote
1N
ote
2"
Bao
-Mao
Tech
nolo
gyC
o.,L
td.
""
960,
697
-N
ote
1N
ote
2"
Uni
vers
alC
hu-C
hing
Co.
,Ltd
."
"71
,923
-N
ote
1N
ote
2"
Chu
ang-
Jing
Tech
nolo
gyC
o.,
Ltd.
""
4,84
2-
Not
e1
Not
e2
"W
ei-J
unTe
chno
logy
Co.
,Ltd
."
"70
7-
Not
e1
Not
e2
"Ji
e-Lu
nTe
chno
logy
Co.
,Ltd
."
"6,
617
-N
ote
1N
ote
2Pr
ince
Ta-C
hen
Inve
stmen
tCo.
,Lt
d.
Stoc
kA
cthe
rmIn
c.N
one
Ava
ilabl
e-fo
r-sal
efin
anci
alas
sets
-no
n-cu
rrent
17,3
1726
7N
ote
115
.40
Dec
embe
r31,
2012
Prince Housing & Development Corp . Annual Report 2012
191
~57~
Nam
eof
the
com
pany
Type
ofin
vestm
ent
Nam
eof
inve
stee
com
pani
esRe
latio
nshi
pw
ithth
eCo
mpa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Carry
ing
amou
ntPe
rcen
tage
ofco
mpa
ny's
owne
rshi
pM
arke
tval
ueN
ote
Prin
ceTa
-Che
nIn
vestm
entC
o.,L
td.
Fund
Taiw
anBe
stSe
lect
ion
Non
eFi
nanc
iala
sset
sat
fair
valu
eth
roug
hpr
ofit
orlo
ss-c
urre
nt
500,
000
5,41
0$
Not
e1
10.8
2$
Stoc
kG
enom
eIn
tern
atio
nal
Biom
edic
alCo
.Ltd
."
"92
-N
ote
111
3.50
"H
olux
Tech
nolo
gyIn
c."
"27
9,50
92,
622
Not
e1
9.38
Prin
ceU
tility
Co.,
Ltd.
"Pr
ince
Biot
echn
olog
yCo
.,Lt
d.A
ffilia
ted
Com
pany
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
5,00
047
Not
e1
9.54
Prin
cePr
oper
tyM
anag
emen
tCo
nsul
ting
CO.,
Ltd.
(form
erly
Prin
ceRe
alEs
tate
App
raisa
lCo
.,Lt
d.)
"Pr
ince
Apa
rtmen
tMan
agem
ent
Mai
ntai
nCo
.,Lt
d.Su
bsid
iary
"3,
000,
000
67,8
5310
0.00
22.6
2
"Pr
ince
Secu
rity
Co.,
Ltd.
""
13,1
72,6
3616
1,79
410
0.00
12.2
5"
Prin
ceBi
otec
hnol
ogy
Co.,
Ltd.
Affi
liate
Com
pany
"15
,000
142
Not
e1
9.54
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.,
Ltd.
"Pr
ince
Hou
sing
&D
evel
opm
ent
Corp
.Pa
rent
com
pany
Ava
ilabl
e-fo
r-sal
efin
anci
alas
sets
-no
n-cu
rrent
578,
486
7,49
5N
ote
120
.70
"Ta
inan
Spin
ning
Co.,
Ltd.
Non
e"
115,
733
2,00
3N
ote
114
.65
"Pr
ince
Biot
echn
olog
yCo
.,Lt
d.A
ffilia
teCo
mpa
nyLo
ng-te
rmeq
uity
inve
stmen
tsac
coun
ted
foru
nder
the
equi
tym
etho
d
5,00
047
Not
e1
9.54
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Stoc
kA
mid
aTr
ustli
nkA
sset
sM
anag
emen
tCo.
,Ltd
.Th
ein
veste
eco
mpa
nyac
coun
ted
foru
nder
the
equi
tym
etho
d
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
37,0
25,6
2531
7,98
645
.21
8.59
"Sy
nta
Phar
mac
eutic
alsC
orp.
Non
eA
vaila
ble-
for-s
ale
finan
cial
asse
ts-
non-
curre
nt
180,
000
47,0
68N
ote
1U
S$26
1.49
Dec
embe
r31,
2012
192
~58~
Not
e1:
Perc
enta
geof
com
pany
’sow
ners
hip
isle
ssth
an5%
.N
ote
2:W
eha
veno
trec
eive
dth
efin
anci
alsta
tem
ents
from
man
agem
ent.
Thus
then
etva
lue
cann
otbe
mea
sure
d.N
ote
3:12
,000
,000
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e4:
108,
000,
000
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e5:
4,08
8,45
1sh
ares
ofou
tstan
ding
com
mon
stock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
6:17
,276
,000
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e7:
60,0
00,0
00sh
ares
ofou
tstan
ding
com
mon
stock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
8:30
,763
,397
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e9:
7,71
5,98
0sh
ares
ofou
tstan
ding
com
mon
stock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
10:
Not
appl
icab
lefo
ralim
ited
com
pany
.
Nam
eof
the
com
pany
Type
ofin
vestm
ent
Nam
eof
inve
stee
com
pani
esRe
latio
nshi
pw
ithth
eCo
mpa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Carry
ing
amou
ntPe
rcen
tage
ofco
mpa
ny's
owne
rshi
pM
arke
tval
ueN
ote
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Stoc
kN
ante
xIn
dustr
yCo
.,Lt
d.N
one
Ava
ilabl
e-fo
r-sal
efin
anci
alas
sets
-no
n-cu
rrent
149,
942
2,81
1N
ote
118
.75
"Su
ngG
ang
Ass
etM
anag
emen
tCo
.,Lt
d."
"2,
083,
333
39,8
96N
ote
119
.15
Prin
ceCa
pita
l,In
c."
Prin
ceV
entu
resU
SAIn
c.Su
bsid
iary
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
1U
S$11
310
0.00
US$
0.19
Prin
ceV
entu
res
USA
Inc.
Fund
SHO
RTTE
RMU
STR
EAS
ISS
CLA
SSN
one
Fina
ncia
lass
etsa
tfa
irva
lue
thro
ugh
prof
itor
loss
-cur
rent
65,0
00U
S$66
Not
e1
US$
1.00
Stoc
kSy
nta
Phar
mac
eutic
alsC
orp.
""
5,00
0U
S$45
Not
e1
US$
9.02
Prin
ceSe
curit
yCo
.,Lt
d."
Nan
mat
Tech
nolo
gyCo
.,Lt
d."
Fina
ncia
lass
ets
carri
edat
cost
-no
n-cu
rrent
164,
480
1,60
0N
ote
1N
ote2
Early
Succ
ess
Inve
stmen
tsLt
d."
Synt
aPh
arm
aceu
tical
sCor
p.N
one
Fina
ncia
lass
etsa
tfa
irva
lue
thro
ugh
prof
itor
loss
-cur
rent
154,
800
US$
1,39
6N
ote
1U
S$9.
02
Ta-C
hen
Inte
rnat
iona
l(B
rune
i)Co
rp.
"Ta
-Che
nCo
nstru
ctio
n&
Engi
neer
ing
(Vie
tnam
)Cor
p.Su
bsid
iary
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
Not
e10
US$
6710
0.00
Not
e10
Dec
embe
r31,
2012
~58~
Not
e1:
Perc
enta
geof
com
pany
’sow
ners
hip
isle
ssth
an5%
.N
ote
2:W
eha
veno
trec
eive
dth
efin
anci
alsta
tem
ents
from
man
agem
ent.
Thus
then
etva
lue
cann
otbe
mea
sure
d.N
ote
3:12
,000
,000
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e4:
108,
000,
000
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e5:
4,08
8,45
1sh
ares
ofou
tstan
ding
com
mon
stock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
6:17
,276
,000
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e7:
60,0
00,0
00sh
ares
ofou
tstan
ding
com
mon
stock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
8:30
,763
,397
shar
esof
outst
andi
ngco
mm
onsto
ckw
ere
used
asco
llate
ralf
orlo
an.
Not
e9:
7,71
5,98
0sh
ares
ofou
tstan
ding
com
mon
stock
wer
eus
edas
colla
tera
lfor
loan
.N
ote
10:
Not
appl
icab
lefo
ralim
ited
com
pany
.
Nam
eof
the
com
pany
Type
ofin
vestm
ent
Nam
eof
inve
stee
com
pani
esRe
latio
nshi
pw
ithth
eCo
mpa
nyG
ener
alle
dger
acco
unts
Num
bero
fsha
res
Carry
ing
amou
ntPe
rcen
tage
ofco
mpa
ny's
owne
rshi
pM
arke
tval
ueN
ote
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Stoc
kN
ante
xIn
dustr
yCo
.,Lt
d.N
one
Ava
ilabl
e-fo
r-sal
efin
anci
alas
sets
-no
n-cu
rrent
149,
942
2,81
1N
ote
118
.75
"Su
ngG
ang
Ass
etM
anag
emen
tCo
.,Lt
d."
"2,
083,
333
39,8
96N
ote
119
.15
Prin
ceCa
pita
l,In
c."
Prin
ceV
entu
resU
SAIn
c.Su
bsid
iary
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
1U
S$11
310
0.00
US$
0.19
Prin
ceV
entu
res
USA
Inc.
Fund
SHO
RTTE
RMU
STR
EAS
ISS
CLA
SSN
one
Fina
ncia
lass
etsa
tfa
irva
lue
thro
ugh
prof
itor
loss
-cur
rent
65,0
00U
S$66
Not
e1
US$
1.00
Stoc
kSy
nta
Phar
mac
eutic
alsC
orp.
""
5,00
0U
S$45
Not
e1
US$
9.02
Prin
ceSe
curit
yCo
.,Lt
d."
Nan
mat
Tech
nolo
gyCo
.,Lt
d."
Fina
ncia
lass
ets
carri
edat
cost
-no
n-cu
rrent
164,
480
1,60
0N
ote
1N
ote2
Early
Succ
ess
Inve
stmen
tsLt
d."
Synt
aPh
arm
aceu
tical
sCor
p.N
one
Fina
ncia
lass
etsa
tfa
irva
lue
thro
ugh
prof
itor
loss
-cur
rent
154,
800
US$
1,39
6N
ote
1U
S$9.
02
Ta-C
hen
Inte
rnat
iona
l(B
rune
i)Co
rp.
"Ta
-Che
nCo
nstru
ctio
n&
Engi
neer
ing
(Vie
tnam
)Cor
p.Su
bsid
iary
Long
-term
equi
tyin
vestm
ents
acco
unte
dfo
rund
erth
eeq
uity
met
hod
Not
e10
US$
6710
0.00
Not
e10
Dec
embe
r31,
2012
Prince Housing & Development Corp . Annual Report 2012
193
~59~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rel
atio
nshi
pN
umbe
rof
Num
bero
fN
umbe
rof
Gai
nN
umbe
rof
Num
bero
f
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Beg
inni
ngba
lanc
eA
dditi
onD
ispos
alO
ther
incr
ease
(dec
reas
e)En
ding
bala
nce
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rela
tions
hip
ofth
eor
igin
alow
ner
with
the
Com
pany
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisfo
rpric
ede
term
inat
ion
Acq
uisit
ion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rCo
pora
tion
Non
e-
--
-$
Neg
otia
ted
pric
eC
onst
ruct
ion
Not
e
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,23
024
1,23
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
D.
Acc
umul
ated
add
ition
s an
d di
spos
als
of in
divi
dual
mar
keta
ble
secu
rity
exce
edin
g $1
00 m
illio
n or
20%
of t
he C
ompa
ny’s
con
tribu
ted
capi
tal:
~59~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rel
atio
nshi
pN
umbe
rof
Num
bero
fN
umbe
rof
Gai
nN
umbe
rof
Num
bero
f
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Beg
inni
ngba
lanc
eA
dditi
onD
ispos
alO
ther
incr
ease
(dec
reas
e)En
ding
bala
nce
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rela
tions
hip
ofth
eor
igin
alow
ner
with
the
Com
pany
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisf
orpr
ice
dete
rmin
atio
n
Acq
uisi
tion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rCo
pora
tion
Non
e-
--
-$
Neg
otia
ted
pric
eC
onst
ruct
ion
Not
e
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,23
024
1,23
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
E. A
cqui
sitio
n of
real
est
ate
exce
edin
g $1
00 m
illio
n or
20%
of t
he C
ompa
ny’s
con
tribu
ted
capi
tal:
~59~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rel
atio
nshi
pN
umbe
rof
Num
bero
fN
umbe
rof
Gai
nN
umbe
rof
Num
bero
f
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Beg
inni
ngba
lanc
eA
dditi
onD
ispos
alO
ther
incr
ease
(dec
reas
e)En
ding
bala
nce
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rela
tions
hip
ofth
eor
igin
alow
ner
with
the
Com
pany
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisfo
rpric
ede
term
inat
ion
Acq
uisit
ion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rCo
pora
tion
Non
e-
--
-$
Neg
otia
ted
pric
eC
onst
ruct
ion
Not
e
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,23
024
1,23
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
~59~
D.A
ccum
ulat
edad
ditio
nsan
ddi
spos
also
find
ivid
ualm
arke
tabl
ese
curit
yex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
E.A
cqui
sitio
nof
real
esta
teex
ceed
ing
$100
mill
ion
or20
%of
the
Com
pany
’sco
ntrib
uted
capi
tal:
Not
e:Pl
ease
refe
rto
Not
e7.
Nan
dO
.
Rel
atio
nshi
pN
umbe
rof
Num
bero
fN
umbe
rof
Gai
nN
umbe
rof
Num
bero
f
Mar
keta
ble
Gen
eral
with
the
shar
essh
ares
shar
esSe
lling
Boo
k(lo
ss)o
nsh
ares
Am
ount
shar
es
Inve
stor
secu
ritie
sle
dger
acco
unt
Cou
nter
party
Com
pany
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
Am
ount
(inth
ousa
nds)
pric
eva
lue
disp
osal
(inth
ousa
nds)
(Not
e)(in
thou
sand
s)A
mou
nt
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Pr
ince
Prop
erty
Man
agem
ent
Cons
ultin
gC
o.,L
td.
Long
-term
equi
tyin
vest
men
tsac
coun
ted
for
unde
rthe
equi
tym
etho
d
Non
eSu
bsid
iary
1,00
02,
202
$13
,000
$13
0,00
0-
-$
-$
-$
3,14
7$
$91
,701
17,1
4722
3,90
3$
Not
e:In
clud
ing
inve
stm
enti
ncom
e(lo
ss)a
ccou
nted
foru
nder
the
equi
tym
etho
dan
dth
eeq
uity
incr
ease
from
shar
eco
nver
sion
inbu
sines
scom
bina
tion.
Beg
inni
ngba
lanc
eA
dditi
onD
ispos
alO
ther
incr
ease
(dec
reas
e)En
ding
bala
nce
Acq
uirin
gco
mpa
nyTy
peof
prop
erty
Dat
eof
trans
actio
n(N
ote
A)
Tran
sact
ion
amou
ntPa
ymen
tst
atus
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyO
rigin
alow
ner
Rela
tions
hip
ofth
eor
igin
alow
ner
with
the
Com
pany
Dat
eof
the
orig
inal
trans
actio
nA
mou
ntBa
sisfo
rpric
ede
term
inat
ion
Acq
uisit
ion
purp
ose
and
curre
ntst
atus
onus
age
Oth
erco
mm
itmen
ts
Min
gD
ing
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/11/
727
3,68
0$
273,
680
$Ta
iwan
Suga
rCo
pora
tion
Non
e-
--
-$
Neg
otia
ted
pric
eC
onst
ruct
ion
Not
e
He
Gua
nLo
t(inc
ludi
ngla
ndan
dbu
ildin
gs)
2012
/12/
1024
1,23
024
1,23
0"
"-
--
-"
""
Qia
oZh
ong
Lot(
incl
udin
gla
ndan
dbu
ildin
gs)
2012
/12/
2015
7,96
015
7,96
0"
"-
--
-"
""
Ifth
eco
unte
rpar
tyis
are
late
dpa
rty,i
nfor
mat
ion
perta
inin
gto
prev
ious
trans
actio
nson
the
prop
erty
isdi
sclo
sed
belo
w:
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.
194
G.
Purc
hase
s fr
om o
r sal
es to
rela
ted
parti
es e
xcee
ding
$10
0 m
illio
n or
20%
of t
he C
ompa
ny’s
con
tribu
ted
capi
tal d
urin
g th
e ye
ar e
nded
Dec
embe
r 31
, 201
2:
~60~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
F.
Dis
posa
l of r
eal e
stat
e ex
ceed
ing
$100
mill
ion
or 2
0% o
f the
Com
pany
’s c
ontri
bute
d ca
pita
l:
~60~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
~60~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
~60~
F.D
ispo
salo
frea
lest
ate
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
l:
. Not
e1:
The
sign
ing
date
ofth
eco
ntra
ct.A
sofD
ecem
ber3
1,20
12,t
hela
ndha
dbe
entra
nsfe
rred
toth
eco
unte
rpar
ty.
Not
e2:
Usi
ngdi
spos
alam
ount
less
itsco
stan
dre
late
dex
pens
es.
G.P
urch
ases
from
orsa
lest
ore
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eC
ompa
ny’s
cont
ribut
edca
pita
ldur
ing
the
year
ende
dD
ecem
ber3
1,20
12:
Not
eA:P
rogr
essp
aym
ents
wer
em
ade
inac
cord
ance
with
the
cont
ract
term
s.
Not
eB
:Iti
srea
sona
ble
com
pare
dto
the
norm
altra
ding
term
s.
Bas
isor
Dat
eof
Stat
usof
Gai
n(lo
ss)
Rel
atio
nshi
pre
fere
nce
used
Com
pany
disp
osal
Dat
eof
Dis
posa
lco
llect
ion
ondi
spos
alw
ithth
eR
easo
nof
inse
tting
Oth
er
nam
ePr
oper
ty(N
ote
1)ac
quis
ition
Boo
kva
lue
amou
ntof
proc
eeds
(Not
e2)
Cou
nter
party
Com
pany
disp
osal
the
pric
eco
mm
itmen
ts
Prin
ceH
ousi
ngSa
nK
uaiC
uo20
12/0
3/20
2008
/05/
2215
5,20
0$
240,
347
$24
0,34
7$
84,5
96$
Third
party
Non
eFo
rope
ratin
gus
eM
arke
tval
ue-
&D
evel
opm
ent
LotN
o.12
44
Cor
p.
Yu
Don
gLo
t20
11/1
1/29
1996
/05/
2393
,857
108,
395
108,
395
9,71
9Th
irdpa
rtyN
one
Foro
pera
ting
use
Mar
ketv
alue
-
No.
995
Com
pany
Cou
nter
party
Rel
atio
nshi
pw
ithth
eC
ompa
nyPu
rcha
ses
/(Sal
es)
Am
ount
%of
tota
lPu
rcha
ses
(Sal
es)
Cre
ditt
erm
sU
nitp
rice
Cre
ditt
erm
sB
alan
ce
%of
tota
lac
coun
ts/n
otes
rece
ivab
le(p
ayab
le)
Not
eC
heng
-Shi
Con
stru
ctio
nC
o.,
Ltd.
Subs
idia
ryPu
rcha
ses
699,
743
$12
%N
ote
AN
ote
BN
ote
B12
8,31
1)($
(5%
)
Ta-C
hen
Con
stru
cion
&En
gine
erin
gC
orp.
""
365,
254
6%"
""
191,
827)
((8
%)
Prin
ceU
tility
Co.
,Ltd
."
"26
7,32
94%
""
"98
,712
)(
(4%
)
Tran
sact
ions
Diff
eren
cesi
ntra
nsac
tion
term
sco
mpa
red
toth
irdpa
rtytra
nsac
tions
Acc
ount
s/no
tesr
ecei
vabl
e(p
ayab
le)
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
Prince Housing & Development Corp . Annual Report 2012
195
~61~
H.R
ecei
vabl
esfro
mre
late
dpa
rties
exce
edin
g$1
00m
illio
nor
20%
ofth
eCo
mpa
ny’s
cont
ribut
edca
pita
lasa
tDec
embe
r31,
2012
:
I.Inf
orm
atio
non
deriv
ativ
ein
stru
men
tstra
nsac
tions
:Non
e.
Cre
dito
rC
ount
erpa
rtyR
elat
ions
hip
with
the
Com
pany
Bal
ance
asat
Dec
embe
r31,
2012
Turn
over
rate
Am
ount
Act
ion
Take
n
Am
ount
colle
cted
subs
eque
ntto
the
bala
nce
shee
tdat
eA
llow
ance
for
doub
tfula
ccou
nts
The
Sple
nder
Hot
elTa
ichu
ngSu
bsid
iary
Oth
eras
sets
--
$-
-$
-$
575,
000
$Ji
nY
iXin
gPl
ywoo
dC
o.,L
td.
Subs
idia
ryO
ther
asse
ts-
--
--
480,
185
$C
hung
,Wu-
Chu
anTh
eC
hairm
an's
spou
seA
ccou
ntsr
ecei
vabl
e 185,
560
$-
--
185,
560
-
Ove
rdue
rece
ivab
les
Prin
ceH
ousi
ng&
Dev
elop
men
tCor
p.
H.
Rec
eiva
bles
from
rela
ted
parti
es e
xcee
ding
$10
0 m
illio
n or
20%
of t
he C
ompa
ny’s
con
tribu
ted
capi
tal a
s at
Dec
embe
r 31,
201
2:
I. In
form
atio
n on
der
ivat
ive
inst
rum
ents
tran
sact
ions
: Non
e.
196
(2)
Dis
clos
ure
info
rmat
ion
of in
vest
ee c
ompa
nyIn
form
atio
n of
inve
stee
com
pani
es a
s D
ecem
ber 3
1, 2
012
is d
iscl
osed
bel
ow:
~62~
(2)D
isclo
sure
info
rmat
ion
ofin
veste
eco
mpa
nyIn
form
atio
nof
inve
stee
com
pani
esas
Dec
embe
r31,
2012
isdi
sclo
sed
belo
w:
Inve
stor
Inve
stee
Loca
tion
Mai
nac
tiviti
esCu
rrenc
yD
ecem
ber3
1,20
12Cu
rrenc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Curre
ncy
Carry
ing
amou
ntCu
rrenc
yA
mou
ntCu
rrenc
yA
mou
ntN
ote
Ta-C
hen
Cons
truct
ion
&En
gine
erin
gCo
rp.
Taiw
anCo
nstru
ctio
nN
TD-
$N
TD1,
240,
000
$-
-N
TD-
$N
TD29
2,42
5$
NTD
88,6
26$
1、2
Prin
ceU
tility
Co.,
Ltd.
Taiw
anEl
ectri
city
and
wat
erpi
pem
aint
enan
ce
NTD
-N
TD38
,800
--
NTD
-N
TD22
,144
NTD
10,1
651、
2
Chen
g-Sh
iInv
estm
ent
Hol
ding
sCo.
,Ltd
.Ta
iwan
Gen
eral
inve
stmen
tsN
TD1,
379,
950
NTD
-12
0,80
7,23
010
0.00
NTD
539,
263
NTD
-N
TD-
2
Prin
cePr
oper
tyM
anag
emen
tCon
sulti
ngCo
.,Lt
d.(fo
rmer
lyPr
ince
Real
Esta
teA
gent
Co.,
Ltd.
)
Taiw
anM
anag
emen
tand
cons
ultin
gN
TD18
1,00
0N
TD10
,000
17,1
46,5
8010
0.00
NTD
223,
903
NTD
2,03
4N
TD1,
019
2
Prin
ceRe
alEs
tate
App
raisa
lCo
.,Lt
d.Ta
iwan
Real
esta
teap
prai
sal
NTD
-N
TD1,
000
--
NTD
-N
TD88
)(
NTD
265
3
Gen
g-D
ing
Co.,
Ltd.
Taiw
anH
otel
sand
cate
ring
NTD
120,
000
NTD
120,
000
18,0
00,0
0030
.00
NTD
317,
735
NTD
41,9
02N
TD12
,571
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.,
Ltd.
Taiw
anM
anag
emen
tof
apar
tmen
tsN
TD-
NTD
30,0
00-
-N
TD-
NTD
8,03
9N
TD8,
462
1、2
Prin
ceH
ousin
gIn
vestm
ent
Co.,
Ltd.
Brits
hV
irgin
Isla
nds
Ove
rsea
sin
vestm
ent
USD
4,28
0U
SD4,
280
428
100.
00N
TD31
2,28
2N
TD18
,094
NTD
18,0
942
BioS
unTe
chno
logy
Co.,
Ltd.
Taiw
anA
nti-m
ildew
'sim
port
and
expo
rtN
TD46
,880
NTD
46,8
804,
688,
000
100.
00N
TD24
,123
NTD
7,63
3)(
NTD
7,63
3)(
2
Prin
ceBi
otec
hnol
ogy
Co.,
Ltd.
Taiw
anRe
sear
chan
dde
velo
pmen
tof
biol
ogic
alpr
epar
atio
n
NTD
2,50
0N
TD2,
500
250,
000
50.0
0N
TD2,
385
NTD
104
NTD
522
Prin
ceSe
curit
yCo
.,Lt
d.Ta
iwan
Secu
rity
NTD
-N
TD10
,000
--
NTD
-N
TD19
,449
NTD
5,99
01、
2
Prin
ceTa
-Che
nIn
vestm
ent
Co.,
Ltd.
Taiw
anG
ener
alin
vestm
ents
NTD
198,
940
NTD
198,
940
12,2
70,1
0099
.97
NTD
41,9
20N
TD38
8)(
NTD
388)
(2
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Taiw
anH
ouse
build
ersa
ndsa
les
NTD
965,
034
NTD
1,15
0,03
420
,400
,194
100.
00N
TD23
1,52
2N
TD64
,002
NTD
64,0
021、
2
Initi
alin
vestm
enta
mou
ntH
oldi
ngsta
tus
Net
inco
me
(loss
)of
inve
stee
com
pany
Inve
stmen
tinc
ome
(loss
)re
cogn
ized
byth
eCo
mpa
ny
Prin
ceH
ousin
g&
Dev
elop
men
tCo
rp.
Prince Housing & Development Corp . Annual Report 2012
197
~63~
Inve
stor
Inve
stee
Loca
tion
Mai
nac
tiviti
esC
urre
ncy
Dec
embe
r31,
2012
Cur
renc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Cur
renc
yC
arry
ing
amou
ntC
urre
ncy
Am
ount
Curre
ncy
Am
ount
Not
e
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.U
ni-P
resid
ent
Dev
elop
men
tCor
p.Ta
iwan
Leas
ing
ofbu
ildin
gsN
TD1,
080,
000
$N
TD1,
080,
000
$10
8,00
0,00
030
.00
NTD
980,
708
$N
TD23
1,72
5$
NTD
69,5
09$
Che
ng-S
hiC
onst
ruct
ion
Co.
,Ltd
.Ta
iwan
Con
stru
ctio
nN
TD-
NTD
61,1
50-
-N
TD-
NTD
7,03
8N
TD7,
092
1、2
The
Sple
ndor
Hot
elTa
ichu
ngTa
iwan
Hot
elsa
ndca
terin
gN
TD97
5,00
0N
TD97
5,00
097
,500
,000
50.0
0N
TD38
3,07
8N
TD16
,972
)(
NTD
8,48
6)(
2
Tim
eSq
uare
Inte
rnat
iona
lCo.
,Ltd
.Ta
iwan
Hot
elsa
ndca
terin
gN
TD60
0,00
0N
TD60
0,00
060
,000
,000
100.
00N
TD43
8,18
9N
TD13
8,77
9N
TD14
5,21
52
Jin-Y
i-Xin
gPl
ywoo
dC
o.,L
td.
Taiw
anM
anuf
actu
reof
plyw
oods
NTD
636,
194
NTD
636,
194
151,
468
99.6
5N
TD66
1,38
1N
TD8,
198
NTD
8,16
92
Early
Succ
ess
Inve
stm
ents
Ltd.
Brits
hV
irgin
Isla
nds
Ove
rsea
sin
vest
men
tN
TD33
,018
NTD
33,0
181,
554,
660
100.
00N
TD40
,506
NTD
19,9
19N
TD19
,919
2
Min
g-D
aEn
terp
rise
Co.
,Ltd
.Ta
iwan
Rea
lest
ate
tradi
ngN
TD12
7,40
0N
TD12
7,40
03,
640,
000
20.0
0N
TD13
2,45
3N
TD76
5N
TD1,
565)
(
Sple
ndor
Ass
ets
Man
agem
entC
o.,L
td.
Taiw
anM
anag
emen
tco
nsul
ting
NTD
500
NTD
500
50,0
0050
.00
NTD
487
NTD
2N
TD1
2
Prin
ceA
sset
sM
anag
emen
tLLC
.H
ong
Kon
gO
vers
eas
inve
stm
ent
NTD
62,6
31N
TD72
,956
2,19
010
0.00
NTD
1,24
4N
TD18
,779
NTD
7,87
12
Che
ngSh
iInv
estm
ent
Hol
ding
sCo.
,Ltd
.Ta
-Che
nC
onstr
ucio
n&
Engi
neer
ing
Cor
p.Ta
iwan
Con
stru
ctio
nN
TD1,
191,
591
NTD
-12
4,00
0,00
010
0.00
NTD
1,19
1,59
1N
TD29
2,42
5N
TD-
2
Prin
ceU
tility
Co.,
Ltd.
Taiw
anEl
ectri
city
and
wat
erpi
pem
aint
enan
ce
NTD
56,0
25N
TD-
3,07
0,00
010
0.00
NTD
56,0
25N
TD22
,144
NTD
-2
Che
ng-S
hiC
onst
ruct
ion
Co.
,Ltd
.Ta
iwan
Con
stru
ctio
nN
TD10
8,02
7N
TD-
10,1
00,0
0010
0.00
NTD
108,
027
NTD
7,03
8N
TD-
2
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.Pr
ince
Ente
rtain
men
tC
o.,L
td.
Taiw
anM
anag
emen
tof
ente
rtain
men
tN
TD-
NTD
4,90
0-
-N
TD-
NTD
88)
(N
TD-
3
Initi
alin
vestm
enta
mou
ntH
oldi
ngSt
atus
Net
inco
me
(loss
)of
inve
stee
com
pany
Inve
stm
enti
ncom
e(lo
ss)
reco
gniz
edby
the
Com
pany
198
~64~
Inve
stor
Inve
stee
Loca
tion
Maj
orac
tiviti
esC
urre
ncy
Dec
embe
r31,
2012
Cur
renc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Cur
renc
yC
arry
ing
amou
ntC
urre
ncy
Am
ount
Cur
renc
yA
mou
ntN
ote
Ta-C
hen
Con
stru
ctio
n&
Engi
neer
ing
Cor
p.Ta
-Che
nIn
tern
atio
nal
(Bru
nei)
Cor
p.Br
unei
Ove
rsea
sin
vest
men
tN
TD5,
916
$N
TD1,
964
$20
1,00
010
0.00
NTD
2,92
3$
NTD
2,87
7)($
NTD
-$
2
Prin
ceBi
otec
hnol
ogy
Co.
,Ltd
.Ta
iwan
Rese
rch
and
deve
lopm
ento
fbi
olog
ical
prep
arat
ion
NTD
2,25
0N
TD2,
250
225,
000
45.0
0N
TD2,
147
NTD
104
NTD
-2
Prin
ceSe
curit
yC
o.,
Ltd.
Taiw
anSe
curit
yN
TD-
NTD
10,0
00-
-N
TD-
NTD
19,4
49N
TD-
2
Prin
ceH
ousin
gIn
vestm
ent
Co.
,Ltd
.PP
GIn
vest
men
tInc
.U
SAO
vers
eas
inve
stm
ent
USD
1,90
9U
SD1,
909
273
27.2
7U
SD1,
969
USD
487)
(U
SD-
Que
enH
oldi
ngsL
td.
Brits
hV
irgin
Isla
nds
Ove
rsea
sin
vest
men
tU
SD4,
091
USD
4,09
12,
730
27.2
7U
SD9,
352
USD
2,11
0U
SD-
Prin
ceTa
-Che
nIn
vestm
ent
Co.
,Ltd
.Pr
ince
Cap
ital,I
nc.
Brits
hV
irgin
Isla
nds
Ove
rsea
sin
vest
men
tN
TD26
,727
NTD
26,7
271
100.
00N
TD2,
640
USD
3)(
NTD
-2
Prin
ceU
tility
Co.
,Ltd
.Pr
ince
Biot
echn
olog
yC
o.,L
td.
Taiw
anRe
serc
han
dde
velo
pmen
tof
biol
ogic
alpr
epar
atio
n
NTD
50N
TD50
5,00
01.
00N
TD47
NTD
104
NTD
-2
Prin
cePr
oper
tyM
anag
emen
tCon
sulti
ngC
o.,L
td.(
form
erly
Prin
ceR
ealE
stat
eA
gent
Co.
,Ltd
.)
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.
,Ltd
.
Taiw
anM
anag
emen
tof
apar
tmen
tsN
TD67
,853
NTD
-3,
000,
000
100.
00N
TD67
,853
NTD
8,03
9N
TD-
2
Prin
ceSe
curit
yC
o.,
Ltd.
Taiw
anSe
curit
yN
TD15
9,61
1N
TD-
13,1
72,6
3610
0.00
NTD
161,
794
NTD
19,4
49N
TD-
2
Prin
ceBi
otec
hnol
ogy
Co.
,Ltd
.Ta
iwan
Rese
rch
and
deve
lopm
ento
fbi
olog
ical
prep
arat
ion
NTD
150
NTD
-15
,000
3.00
NTD
142
NTD
104
NTD
-2
Initi
alin
vest
men
tam
ount
Hol
ding
Stat
usN
etin
com
e(lo
ss)o
fin
vest
eeco
mpa
nyIn
vest
men
tinc
ome
(loss
)re
cogn
ized
byth
eC
ompa
ny
Prince Housing & Development Corp . Annual Report 2012
199
~65~
Not
e1:
The
diffe
renc
ebe
twee
nth
ein
com
e(lo
ss)o
fthe
inve
stee
and
the
inve
stmen
tinc
ome
(loss
)oft
hein
veste
ere
cogn
ized
byth
eCo
mpa
nyis
the
inve
stmen
tinc
ome
(loss
)oft
hein
veste
ere
cogn
ized
byth
eCo
mpa
nyin
prop
ortio
nto
the
shar
eow
ners
hip
and
unre
aliz
edga
in(lo
ss)f
rom
elim
inat
ion
ofin
ter-c
ompa
nytra
nsac
tions
.N
ote
2:Su
bsid
iary.
Not
e3:
Itha
dbe
endi
ssol
ved
onO
ctob
er1,
2012
beca
use
ofth
em
erge
rin
the
Gro
up.
(3)I
nfor
mat
ion
onin
vestm
enti
nM
ainl
and
Chin
a:N
one.
Inve
stor
Inve
stee
Loca
tion
Maj
orac
tiviti
esCu
rrenc
yD
ecem
ber3
1,20
12Cu
rrenc
yD
ecem
ber3
1,20
11N
umbe
rof
shar
esPe
rcen
tage
Curre
ncy
Carry
ing
amou
ntCu
rrenc
yA
mou
ntCu
rrenc
yA
mou
ntN
ote
Prin
ceA
partm
ent
Man
agem
entM
aint
ain
Co.,
Ltd.
Prin
ceSe
curit
yCo
.,Lt
d.Ta
iwan
Secu
rity
NTD
-$
NTD
10,0
00$
--
NTD
-$
NTD
19,4
49$
NTD
-$
2
Prin
cePr
oper
tyM
anag
emen
tCo.
,Ltd
.Ta
iwan
Dev
elop
men
tof
publ
icho
usin
gan
dbu
ildin
gan
dits
rent
al
NTD
-N
TD5,
000
--
NTD
-N
TD22
)(
NTD
-3
Prin
ceBi
otec
hnol
ogy
Co.,
Ltd.
Taiw
anRe
serc
han
dde
velo
pmen
tof
biol
ogic
alpr
epar
atio
n
NTD
50N
TD50
5,00
01.
00N
TD47
NTD
104
NTD
-2
Don
g-Fe
ngEn
terp
rises
Co.,
Ltd.
Am
ida
Trus
tlink
Ass
etsM
anag
emen
tCo
.,Lt
d.
Taiw
anD
evel
opm
ento
fpu
blic
hous
ing
and
build
ing
and
itsre
ntal
NTD
459,
295
NTD
459,
295
37,0
25,6
2545
.21
NTD
317,
986
NTD
72,6
78N
TD-
Prin
ceCa
pita
l,In
c.Pr
ince
Ven
ture
sU
SAIn
c.Br
itsh
Virg
inIs
land
s
Ove
rsea
sinv
estm
ent
NTD
20,5
11N
TD20
,511
110
0.00
USD
113
USD
2)(
NTD
-2
Prin
ceSe
curit
yCo
.,Lt
d.Pr
ince
Prop
erty
Man
agem
entC
o.,L
td.
Taiw
anD
evel
opm
ento
fpu
blic
hous
ing
and
build
ing
and
itsre
ntal
NTD
-N
TD5,
000
--
NTD
-N
TD22
)(
NTD
-3
Ta-C
hen
Inte
rnat
iona
l(B
rune
i)Co
rp.
TaCh
enCo
nstru
ctio
n&
Engi
neer
ing
(Vie
tnam
)Cor
p.
Vie
tnam
Cons
truct
ion
USD
201
USD
66-
100.
00U
SD67
USD
99)
(U
SD-
2
Initi
alin
vestm
enta
mou
ntH
oldi
ngSt
atus
Net
inco
me
(loss
)of
inve
stee
com
pany
Inve
stmen
tinc
ome
(loss
)re
cogn
ized
byth
eCo
mpa
ny
(3)
Info
rmat
ion
on in
vest
men
t in
Mai
nlan
d C
hina
: Non
e.
Not
e 1:
The
diff
eren
ce b
etw
een
the
inco
me
(loss
) of
the
inve
stee
and
the
inve
stm
ent i
ncom
e (lo
ss)
of th
e in
vest
ee r
ecog
nize
d by
the
Com
pany
is th
e in
vest
men
t inc
ome
(loss
) of
the
inve
stee
reco
gniz
ed b
y th
e C
ompa
ny in
prop
ortio
n to
the
shar
e ow
ners
hip
and
unre
aliz
ed g
ain
(loss
) fro
m e
limin
atio
n of
inte
r-co
mpa
ny tr
ansa
ctio
ns.
Not
e 2:
Sub
sidi
ary.
Not
e 3:
It h
ad b
een
diss
olve
d on
Oct
ober
1, 2
012
beca
use
of th
e m
erge
r in
the
Gro
up.
200
~66~
(4)In
terc
ompa
nyR
elat
ions
hips
and
Sign
ifica
ntIn
terc
ompa
nyTr
ansa
ctio
nsTr
ansa
ctio
nsam
ount
betw
een
the
Com
pany
and
subs
idia
riese
xcee
ding
$100
mill
ion
or2%
ofth
eC
ompa
ny's
cont
ribut
edca
pita
lare
asfo
llow
s:Fo
rthe
year
ende
dD
ecem
ber3
1,20
12:
No.
Com
pany
nam
eC
ount
erpa
rtyR
elat
ions
hip
Gen
eral
ledg
erac
coun
tA
mou
ntTr
ansa
ctio
nte
rms
Perc
enta
geof
cons
olid
ated
tota
lop
erat
ing
reve
nues
orto
tala
sset
s
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
struc
tion
&En
gine
erin
gCo
rp.
The
Com
pany
toth
eco
nsol
idat
edsu
bsid
iarie
sPu
rcha
ses
365,
254
$N
egot
iate
dte
rms
2.49
%
0Ta
-Che
nC
onstr
uctio
n&
Engi
neer
ing
Corp
."
Acc
ount
spay
able
191,
827
-0.
40%
0Ta
-Che
nC
onstr
uctio
n&
Engi
neer
ing
Corp
."
Endo
rsem
enta
ndgu
aran
tee
309,
084
Inac
cord
ance
with
endo
rsem
ent
and
guar
ante
epr
oced
ures
Not
e1
0Pr
ince
Util
ityCo
.,Lt
d."
Purc
hase
s26
7,32
9N
egot
iate
dte
rms
1.82
%
0Pr
ince
Util
ityCo
.,Lt
d."
Acc
ount
spay
able
98,7
12-
0.20
%
0Th
eSp
lend
orH
otel
Taic
hung
"En
dors
emen
tand
guar
ante
e1,
717,
720
Inac
cord
ance
with
endo
rsem
ent
and
guar
ante
epr
oced
ures
Not
e2
0Th
eSp
lend
orH
otel
Taic
hung
"O
ther
asse
ts57
5,00
0Cr
edito
r'srig
htsp
urch
ase
cont
ract
1.19
%
0Ch
eng-
ShiC
onst
ruct
ion
Co.
,Ltd
."
Purc
hase
s69
9,74
3N
egot
iate
dte
rms
4.77
%
0Ch
eng-
ShiC
onst
ruct
ion
Co.
,Ltd
."
Acc
ount
spay
able
128,
311
-0.
26%
0Jin
-Yi-X
ing
plyw
ood
Co.
,Ltd
."
Oth
eras
sets
480,
186
Cred
itor's
right
spur
chas
eco
ntra
ct0.
99%
0Jin
-Yi-X
ing
plyw
ood
Co.
,Ltd
."
Prep
aym
entf
orLa
nd23
8,16
3N
egot
iate
dte
rms
0.49
%
1D
ong-
Feng
Ente
rpris
esC
o.,L
td.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Th
eco
nsol
idat
edsu
bsid
iarie
sto
the
Com
pany
Endo
rsem
enta
ndgu
aran
tee
1,81
0,88
9In
acco
rdan
cew
ithen
dors
emen
tan
dgu
aran
tee
proc
edur
esN
ote
3
2Pr
ince
Util
ityC
o.,L
td.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p."
Endo
rsem
enta
ndgu
aran
tee
540,
651
-N
ote
4
3Jin
-Yi-X
ing
plyw
ood
Co.
,Ltd
.Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
"En
dors
emen
tand
guar
ante
e1,
246,
889
-N
ote
5
Not
e:O
nesid
eof
trans
actio
nsar
edi
sclo
sed
amon
gth
eco
mpa
nyan
dsu
bsid
iarie
s.
Not
e1:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is1.
78%
.
Not
e2:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is9.
91%
.
Not
e3:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is10
.45%
.
Not
e4:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is3.
12%
.
Not
e5:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is7.
19%
.
Tran
sact
ion
Not
e: O
ne s
ide
of tr
ansa
ctio
ns a
re d
iscl
osed
am
ong
the
com
pany
and
sub
sidi
arie
s.
Not
e1: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 1
.78%
.
Not
e2: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 9
.91%
.
Not
e3: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 1
0.45
%.
Not
e4: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 3
.12%
.
Not
e5: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 7
.19%
.
(4)
Inte
rcom
pany
Rel
atio
nshi
ps a
nd S
igni
fican
t Int
erco
mpa
ny T
rans
actio
nsTr
ansa
ctio
ns a
mou
nt b
etw
een
the
Com
pany
and
sub
sidi
arie
s ex
ceed
ing
$100
mill
ion
or 2
% o
f the
Com
pany
's co
ntrib
uted
cap
ital a
re a
s fo
llow
s:Fo
r the
yea
r end
ed D
ecem
ber 3
1, 2
012:
Prince Housing & Development Corp . Annual Report 2012
201
~66~
(4)In
terc
ompa
nyR
elat
ions
hips
and
Sign
ifica
ntIn
terc
ompa
nyTr
ansa
ctio
nsTr
ansa
ctio
nsam
ount
betw
een
the
Com
pany
and
subs
idia
riese
xcee
ding
$100
mill
ion
or2%
ofth
eC
ompa
ny's
cont
ribut
edca
pita
lare
asfo
llow
s:Fo
rthe
year
ende
dD
ecem
ber3
1,20
12:
No.
Com
pany
nam
eC
ount
erpa
rtyR
elat
ions
hip
Gen
eral
ledg
erac
coun
tA
mou
ntTr
ansa
ctio
nte
rms
Perc
enta
geof
cons
olid
ated
tota
lop
erat
ing
reve
nues
orto
tala
sset
s
0Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
Ta-C
hen
Con
struc
tion
&En
gine
erin
gCo
rp.
The
Com
pany
toth
eco
nsol
idat
edsu
bsid
iarie
sPu
rcha
ses
365,
254
$N
egot
iate
dte
rms
2.49
%
0Ta
-Che
nC
onstr
uctio
n&
Engi
neer
ing
Corp
."
Acc
ount
spay
able
191,
827
-0.
40%
0Ta
-Che
nC
onstr
uctio
n&
Engi
neer
ing
Corp
."
Endo
rsem
enta
ndgu
aran
tee
309,
084
Inac
cord
ance
with
endo
rsem
ent
and
guar
ante
epr
oced
ures
Not
e1
0Pr
ince
Util
ityCo
.,Lt
d."
Purc
hase
s26
7,32
9N
egot
iate
dte
rms
1.82
%
0Pr
ince
Util
ityCo
.,Lt
d."
Acc
ount
spay
able
98,7
12-
0.20
%
0Th
eSp
lend
orH
otel
Taic
hung
"En
dors
emen
tand
guar
ante
e1,
717,
720
Inac
cord
ance
with
endo
rsem
ent
and
guar
ante
epr
oced
ures
Not
e2
0Th
eSp
lend
orH
otel
Taic
hung
"O
ther
asse
ts57
5,00
0Cr
edito
r'srig
htsp
urch
ase
cont
ract
1.19
%
0Ch
eng-
ShiC
onst
ruct
ion
Co.
,Ltd
."
Purc
hase
s69
9,74
3N
egot
iate
dte
rms
4.77
%
0Ch
eng-
ShiC
onst
ruct
ion
Co.
,Ltd
."
Acc
ount
spay
able
128,
311
-0.
26%
0Jin
-Yi-X
ing
plyw
ood
Co.
,Ltd
."
Oth
eras
sets
480,
186
Cred
itor's
right
spur
chas
eco
ntra
ct0.
99%
0Jin
-Yi-X
ing
plyw
ood
Co.
,Ltd
."
Prep
aym
entf
orLa
nd23
8,16
3N
egot
iate
dte
rms
0.49
%
1D
ong-
Feng
Ente
rpris
esC
o.,L
td.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p.Th
eco
nsol
idat
edsu
bsid
iarie
sto
the
Com
pany
Endo
rsem
enta
ndgu
aran
tee
1,81
0,88
9In
acco
rdan
cew
ithen
dors
emen
tan
dgu
aran
tee
proc
edur
esN
ote
3
2Pr
ince
Util
ityC
o.,L
td.
Prin
ceH
ousin
g&
Dev
elop
men
tCor
p."
Endo
rsem
enta
ndgu
aran
tee
540,
651
-N
ote
4
3Jin
-Yi-X
ing
plyw
ood
Co.
,Ltd
.Pr
ince
Hou
sing
&D
evel
opm
entC
orp.
"En
dors
emen
tand
guar
ante
e1,
246,
889
-N
ote
5
Not
e:O
nesid
eof
trans
actio
nsar
edi
sclo
sed
amon
gth
eco
mpa
nyan
dsu
bsid
iarie
s.
Not
e1:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is1.
78%
.
Not
e2:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is9.
91%
.
Not
e3:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is10
.45%
.
Not
e4:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is3.
12%
.
Not
e5:P
erce
ntag
eof
cons
olid
ated
tota
lsto
ckho
lder
s'eq
uity
is7.
19%
.
Tran
sact
ion
Not
e: O
ne s
ide
of tr
ansa
ctio
ns a
re d
iscl
osed
am
ong
the
com
pany
and
sub
sidi
arie
s.
Not
e1: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 3
.07%
.
Not
e2: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 9
.36%
.
Not
e3: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 1
.96%
.
Not
e4: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 2
.72%
.
Not
e5: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 1
1.64
%.
Not
e6: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 1
.54%
.
Not
e7: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 3
.47%
.
Not
e8: P
erce
ntag
e of
con
solid
ated
tota
l sto
ckho
lder
s' eq
uity
is 8
.01%
.
For t
he y
ear e
nded
Dec
embe
r 31,
201
1:
202
~68~
12.S
egm
enti
nfro
mat
ion
A.G
ener
alin
form
atio
nM
anag
emen
thas
dete
rmin
edth
ere
porta
ble
oper
atin
gse
gmen
tsba
sed
onth
ere
ports
revi
ewed
byth
ech
ief
oper
atin
gde
cisi
on-m
aker
that
are
used
tom
ake
stra
tegi
cde
cisi
ons.
The
chie
fope
ratin
gde
cisi
on-m
aker
cons
ider
sthe
busi
ness
from
apr
oduc
tper
spec
tive.
B.M
easu
rem
ento
fseg
men
tinf
orm
atio
nTh
ech
ief
oper
atin
gde
cisi
on-m
aker
asse
sses
the
perf
orm
ance
ofth
eop
erat
ing
segm
ents
base
don
the
prof
it(lo
ss)
befo
reta
xes.
This
mea
sure
men
tba
sis
excl
udes
the
effe
cts
ofno
n-re
curr
ing
reve
nues
/exp
endi
ture
sfr
omth
eop
erat
ing
segm
ents
.A
ccou
ntin
gpo
licie
sof
oper
atin
gse
gmen
tsar
eth
esa
me
asth
esu
mm
ary
ofsi
gnifi
cant
acco
untin
gpo
licie
sin
Not
e2
toth
eco
nsol
idat
edfin
anci
alst
atem
ents
.C
.Inf
orm
atio
non
segm
entp
rofit
(loss
)and
asse
tsTh
ese
gmen
tinf
orm
atio
npr
ovid
edto
the
chie
fope
ratin
gde
cisi
on-m
aker
fort
here
porta
ble
segm
ents
isas
follo
ws:
Item
Con
stru
ctio
nH
otel
Oth
ers
Writ
e-of
fand
Adj
ustm
ent
Tota
l
Ope
ratin
gR
even
ues,
net
12,2
53,6
32$
3,15
6,19
6$
792,
626
$1,
544,
712)
($14
,657
,742
$
Cos
tsan
dEx
pens
es10
,967
,953
)(
2,68
4,26
0)(
670,
899)
(1,
555,
220
12,7
67,8
92)
(
Segm
entI
ncom
e1,
285,
679
471,
936
121,
727
1,88
9,85
0
Inte
rest
inco
me
47,8
0891
129
,366
40,6
31)
(37
,454
Inve
stm
enti
ncom
eac
coun
ted
foru
nder
the
equi
tym
etho
d45
7,96
7-
50,6
2237
7,45
4)(
131,
135
Gai
non
valu
atio
nof
finan
cial
asse
ts17
0,60
756
620
,076
191,
249)
(-
Gen
eral
reve
nues
254,
275
15,1
1630
,697
31,7
80)
(26
8,30
8
Inte
rest
expe
nse
369,
979)
(13
8,75
5)(
1)(
40,6
3146
8,10
4)(
Loss
onva
luat
ion
offin
anci
alas
sets
--
-14
,426
)(
14,4
26)
(
Loss
ondi
spos
alof
prop
erty
,pla
ntan
deq
uipm
ent
-2,
479)
(3,
246)
(1,
017
4,70
8)(
Gen
eral
expe
nses
13,9
52)
(1,
410)
(7,
485)
(1,
902
20,9
45)
(
Segm
enti
ncom
ebe
fore
tax
1,83
2,40
534
5,88
524
1,75
61,
818,
564
Inco
me
tax
expe
nse
51,7
91)
(19
,831
9,88
1)(
878)
(42
,719
)(
Con
solid
ated
inco
me
1,78
0,61
4$
365,
716
$23
1,87
5$
1,77
5,84
5$
Segm
enta
sset
s41
,053
,912
$10
,202
,175
$2,
713,
964
$5,
545,
530)
(48
,424
,521
$
Dec
embe
r31,
2012
12. S
egm
ent i
nfro
mat
ion
A.
Gen
eral
info
rmat
ion
Man
agem
ent h
as d
eter
min
ed th
e re
porta
ble
oper
atin
g se
gmen
ts b
ased
on
the
repo
rts re
view
ed b
y th
e ch
ief o
pera
ting
deci
sion
-mak
er th
at a
re u
sed
to m
ake
stra
tegi
c de
cisi
ons.
The
chi
ef o
pera
ting
deci
sion
-mak
er c
onsi
ders
the
busi
ness
from
a p
rodu
ct p
ersp
ectiv
e.B
. M
easu
rem
ent o
f seg
men
t inf
orm
atio
nTh
e ch
ief o
pera
ting
deci
sion
-mak
er a
sses
ses
the
perf
orm
ance
of t
he o
pera
ting
segm
ents
bas
ed o
n th
e pr
ofit (
loss
) bef
ore
taxe
s. T
his
mea
sure
men
t ba
sis
excl
udes
the
effe
cts
of n
on-r
ecur
ring
reve
nues
/exp
endi
ture
s fr
om th
e op
erat
ing
segm
ents
. Acc
ount
ing
polic
ies
of o
pera
ting
segm
ents
are
the
sam
e as
the
sum
mar
y of
sig
nific
ant a
ccou
ntin
g po
licie
s in
Not
e 2
to th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts.
C.
Info
rmat
ion
on s
egm
ent p
rofit
(los
s) a
nd a
sset
sTh
e se
gmen
t inf
orm
atio
n pr
ovid
ed to
the
chie
f ope
ratin
g de
cisi
on-m
aker
for t
he re
porta
ble
segm
ents
is a
s fo
llow
s:
Prince Housing & Development Corp . Annual Report 2012
203
~69~
D.R
econ
cilia
tion
fors
egm
entp
rofit
(loss
)and
asse
tsSa
les
betw
een
segm
ents
are
carri
edou
tata
rm’s
leng
th.T
here
venu
efro
mex
tern
alpa
rties
repo
rted
toth
ech
ief
oper
atin
gde
cisio
n-m
aker
ism
easu
red
ina
man
nerc
onsis
tent
with
that
inth
ein
com
esta
tem
ent.
The
amou
nts
prov
ided
toth
ech
iefo
pera
ting
deci
sion-
mak
erw
ithre
spec
tto
tota
lass
etsa
rem
easu
red
ina
man
nerc
onsis
tent
with
that
inth
eba
lanc
esh
eet.
Info
rmat
ion
onad
juste
dco
nsol
idat
edto
talp
rofit
(loss
)and
segm
ent
prof
it(lo
ss)a
ftert
axes
and
asse
tsan
dre
conc
iliat
ion
fors
egm
enta
sset
sfor
this
year
isgi
ven
inN
ote1
2(C)
.E.
Rev
enue
info
rmat
ion
byca
tego
ryTh
ech
iefo
pera
ting
deci
sion-
mak
erco
nsid
erst
hebu
sines
sfro
ma
prod
uctp
ersp
ectiv
e.Pr
oduc
tcat
egor
yin
form
atio
nis
give
nin
Not
e12
(C).
F.R
even
uein
form
atio
nby
geog
raph
icar
eaTh
eGro
upop
erate
smain
lyin
Taiw
an;i
thas
noex
tern
alcu
stom
erre
venu
efro
mot
herr
egio
ns.T
here
fore
,rev
enue
info
rmati
onby
geog
raph
icar
eais
not
disc
lose
d.G
.Info
rmat
ion
on
maj
or
cust
om
ers
The
Gro
upha
dno
maj
orcu
stom
ersi
n20
12an
d20
11;i
nfor
mat
ion
onm
ajor
cust
omer
sisn
otdi
sclo
sed.
Item
Con
stru
ctio
nH
otel
Oth
ers
Writ
e-of
fand
Adj
ustm
ent
Tota
l
Ope
ratin
gR
even
ues,
net
11,8
39,8
98$
2,34
7,87
8$
1,45
6,82
6$
1,05
4,66
0)($
14,5
89,9
42$
Cos
tsan
dEx
pens
es9,
687,
553)
(2,
306,
903)
(1,
084,
810)
(1,
067,
100
12,0
12,1
66)
(
Segm
entI
ncom
e2,
152,
345
40,9
7537
2,01
62,
577,
776
Inte
rest
inco
me
38,4
9191
224
,474
31,0
97)
(32
,780
Inve
stm
enti
ncom
eac
coun
ted
foru
nder
the
equi
tym
etho
d34
8,01
1-
20,3
0629
7,34
3)(
70,9
74
Gai
non
valu
atio
nof
finan
cial
asse
ts-
--
26,4
4726
,447
Gen
eral
reve
nues
174,
437
13,0
914,
430
7,01
1)(
184,
947
Inte
rest
expe
nse
386,
422)
(14
4,08
9)(
3,15
4)(
31,0
9750
2,56
8)(
Loss
onva
luat
ion
offin
anci
alas
sets
168,
350)
(-
1,70
8)(
170,
058
-
Loss
ondi
spos
alof
prop
erty
,pla
ntan
deq
uipm
ent
-83
,714
)(
--
83,7
14)
(
Gen
eral
expe
nses
18,5
60)
(11
,566
)(
9,44
6)(
3,50
1)(
43,0
73)
(
Segm
enti
ncom
ebe
fore
tax
2,13
9,95
218
4,39
1)(
406,
918
2,26
3,56
9
Inco
me
tax
expe
nse
6,22
6)(
-10
,972
)(
2,09
6)(
19,2
94)
(
Con
solid
ated
(loss
)inc
ome
2,13
3,72
6$
184,
391)
($39
5,94
6$
2,24
4,27
5$
Segm
enta
sset
s43
,359
,292
$10
,117
,340
$2,
928,
780
$5,
183,
661)
(51
,221
,751
$
Dec
embe
r31,
2011
D.
Rec
onci
liatio
n fo
r seg
men
t pro
fit (l
oss)
and
ass
ets
Sale
s be
twee
n se
gmen
ts a
re c
arrie
d ou
t at a
rm’s
leng
th. T
he r
even
ue f
rom
ext
erna
l par
ties
repo
rted
to th
e ch
ief
oper
atin
g de
cisi
on-m
aker
is
mea
sure
d in
a m
anne
r co
nsis
tent
with
that
in th
e in
com
e st
atem
ent.
The
amou
nts
prov
ided
to th
e ch
ief
oper
atin
g de
cisi
on-m
aker
with
res
pect
to
tota
l ass
ets
are
mea
sure
d in
a m
anne
r co
nsis
tent
with
that
in th
e ba
lanc
e sh
eet.
Info
rmat
ion
on a
djus
ted
cons
olid
ated
tota
l pro
fit (
loss
) an
d se
gmen
t pro
fit (l
oss)
afte
r tax
es a
nd a
sset
s an
d re
conc
iliat
ion
for s
egm
ent a
sset
s fo
r thi
s ye
ar is
giv
en in
Not
e 12
(C).
E. R
even
ue in
form
atio
n by
cat
egor
yTh
e ch
ief o
pera
ting
deci
sion
-mak
er c
onsi
ders
the
busi
ness
from
a p
rodu
ct p
ersp
ectiv
e. P
rodu
ct c
ateg
ory
info
rmat
ion
is g
iven
in N
ote
12(C
).F.
R
even
ue in
form
atio
n by
geo
grap
hic
area
The
Gro
up o
pera
tes
mai
nly
in T
aiw
an; i
t has
no
exte
rnal
cus
tom
er r
even
ue f
rom
oth
er r
egio
ns. T
here
fore
, rev
enue
info
rmat
ion
by g
eogr
aphi
c ar
ea is
not
dis
clos
ed.
G.
Info
rmat
ion
on m
ajor
cus
tom
ers
The
Gro
up h
ad n
o m
ajor
cus
tom
ers
in 2
012
and
2011
; inf
orm
atio
n on
maj
or c
usto
mer
s is
not
dis
clos
ed.
204
13. DISCLOSURES RELATING TO THE ADOPTION OF IFRSs
Pursuant to the regulations of the Financial Supervisory Commission, Executive Yuan, R.O.C., effective January 1, 2013, a public company whose stock is listed on the Taiwan Stock Exchange Corporation or traded in the GreTai Securities Market should prepare financial statements in accordance with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), and relevant interpretations and interpretative bulletins that are ratified by the Financial Supervisory Commission.The Company discloses the following information in advance prior to the adoption of IFRSs under the requirements of Jin-Guan-Zheng-Shen-Zi Order No. 0990004943 of the Financial Supervisory Commission, dated February 2, 2010:A. Major contents and status of execution of the Company’s plan for IFRSs adoption:
The Company has formed an IFRSs group headed by the Company’s General Manager, which is responsible for setting up a plan relative to the Company’s transition to IFRSs. The major contents and status of execution of this plan are outlined below:
Working Items for IFRSs Adoption Status of Execution
1. Formation of an IFRSs group Completed Completed 2. Setting up a plan relative to the Company’s transition to
IFRSs CompletedCompleted
3. Identification of the differences between current accounting policies and IFRSs
Completed
4. Identification of consolidated entities under the IFRSs framework Completed
Completed
5. Evaluation of the impact of each exemption and option of the Company under IFRS 1 - First-time Adoption of International Financial Reporting Standards
Completed
6. Evaluation of needed information system adjustments Completed
Completed
7. Evaluation of needed internal control adjustments Completed Completed
8. Establish IFRSs accounting policies Completed Completed 9. Selection of exemptions and options available under IFRS
1 - First-time Adoption of International Financial Reporting Standards
Completed
10. Preparation of statement of financial position on the date of transition to IFRSs
Completed
11. Preparation of IFRSs comparative financial information for 2012 In progress
In progress
12. Completion of relevant internal control (including financial reporting process and relevant information system) adjustments
Completed
B. Material differences that may arise between current accounting policies used in the preparation of financial statements and IFRSs and “Rules Governing the Preparation of Financial Statements by Securities Issuers” that will be used in the preparation of financial statements in the future:
Prince Housing & Development Corp . Annual Report 2012
205
The Company uses the IFRSs already ratified currently by the Financial Supervisory Commission and the “Rules Governing the Preparation of Financial Statements by Securities Issuers” that will be applied in 2013 as the basis for evaluation of material differences in accounting policies as mentioned above. However, the Company’s current evaluation results may be different from the actual differences that may arise when new issuances of or amendments to IFRSs are subsequently ratified by the Financial Supervisory Commission or relevant interpretations or amendments to the “Rules Governing the Preparation of Financial Statements by Securities Issuers” come in the future. The impact of material differences identified by the Company that may arise between the current accounting policies used in the preparation of financial statements and the IFRSs and “Rules Governing the Preparation of Financial Statements by Securities Issuers” that will be used in the preparation of financial statements in the future, and the effects of exemptions selected by the Company under IFRS 1 - First-time Adoption of International Financial Reporting Standards (refer to Note 13(3)) are set forth below:1. Reconciliation of balance sheet accounts with material differences between different accounting
policies adopted as at January 1, 2012:
AccountingStandardsin R.O.C.
Adjustment IFRSs Remark
ASSETS:Construction contracts receivable $ - $ 1,196,132 $ 1,196,132 (1)Inventories 25,391,618 ( 8,262,042) 17,129,576 (1)、(2)、(4)Available-for-sale financial assets - non-current 1,017,055 381,613 1,398,668 (3)Other current assets 23,336 688,395 711,731 (2)Property, plant and equipment, net 16,228,126 ( 9,383,227) 6,844,899 (4)、(5)Investment property - 7,784,047 7,784,047 (4)Other intangible assets - 3,397,138 3,397,138 (5)Others 8,561,616 ( 245,289) 8,316,327 (2)、(3)、(4)、(7)Total assets 51,221,751 ( 4,443,233) 46,778,518Liabilities:Construction contracts payable - 953,023 953,023 (1)Receipts in advance 5,850,696 ( 953,023) 4,897,673 (1)Land value incremental reserve 495,328 ( 495,328) - (6)Deferred tax liabilities - 496,717 496,717 (6)Other liabilities - other 65,991 404,504 470,495 (7)Others 29,250,848 92,933 29,343,781Total liabilities 35,662,863 498,826 36,161,689Stockholders’ equityUndistributed earnings (accumulated deficit) 2,448,137 ( 5,246,617) ( 2,798,480) (2)、(5)、(7)、(8)Others 13,110,751 304,558 13,415,309 (3)、(8)Total stockholders’ equity 15,558,888 ( 4,942,059) 10,616,829Total liabilities and stockholders’ equity 51,221,751 ( 4,443,233) 46,778,518
206
Reasons for differences are outlined below:(1) In accordance with IAS 11, ‘Construction Contracts’, an entity should present the considerations
received from or paid to customers due to construction contracts as assets or liabilities. Therefore, the Company increased due from customers on construction contracts and due to customers on construction contracts by $1,196,132 and $953,023, respectively, and decreased inventories and advances received by $1,196,132 and $953,023, respectively, on the date of transition to IFRSs.
(2) If the Company is required to provide construction services together with construction materials in order to perform its contractual obligation to deliver real estate to the buyers, the revenue from the ‘off plan’ houses sale transactions is recognized on a percentage-of-completion basis, simultaneously when it meets the recognition criteria specified in EITF 78-099. An agreement for the construction of real estate is a construction contract within the scope of IAS 11, “Construction Contracts”, and IAS 11 applies only when the buyer is able to specify the major structural elements of the design of the real estate before construction begins and/or specify major structural changes once construction is in progress. The buyers of the Company’s ‘off plan’ houses sale contracts have only limited ability to affect the design of the real estate or have ability to specify minor changes to the basic design of the real estate only. Therefore, in accordance with IFRIC 15,“Agreements for the Construction of Real Estate”, the Company’s ‘off plan’ houses sale contracts belong to the agreements of sale of goods, which are within the scope of IAS 18,“Revenue” and, accordingly, revenue from those ‘off plan’ houses sale contracts is accounted for as sale of goods under IAS 18. In addition, In accordance with EITF 74-083 and EITF 84-025, selling expenses the Company paid for the construction contract shall be deferred first, and then shall be reclassified as expenses on a percentage-of-completion basis. Those selling expenses which are not probable to produce the inflow of future economic benefit shall be expensed as incurred. The Company, therefore, decreased “Inventories” (Constructionin progress)by$5,548,154, decreased “prepayments (deferred selling expenses)” (shown as“ assets - others” above) by $91,061, increased“ other current assets” (deferred selling expenses) by $688,395 and decreased “ Undistributed earnings” by $4,950,820 at the opening IFRS balance sheet date.
(3) In accordance with the amended “Rules Governing the Preparation of Financial Statements by Securities Issuers”, dated July 7, 2011, unlisted stocks and emerging stocks held by the Company should be measured at cost and recognized in “Financial assets carried at cost”. However, in accordance with IAS 39, “Financial Instruments: Recognition and Measurement”, investments in equity instruments without an active market but with reliable fair value measurement (i.e. the variability of the estimation interval of reasonable fair values of such equity instruments is insignificant, or the probability for these estimates can be made reliably) should be measured at fair value. Therefore, theCompany decreased “financial assets carried at cost - non-current” (shown as “ assets - others” above), increased “available-for-sale financial assets - non-current” by $140,301, and designated such financial assets carried at cost as available-for-sale financial assets, and increased other comprehensive income by $241,312, which was the difference between the fair value and the carrying amount, at the opening IFRS balance sheet date in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” amended on December 22, 2011.
(4) In accordance with current accounting standards in R.O.C., the Company’s real estate that is leased to others and land held for gaining long-term capital increment and not for normal business or sale in short-term and land held whose future use purpose has not been determined
Prince Housing & Development Corp . Annual Report 2012
207
are presented in the “Fixed assets”, “Inventory” and “Investment in real estate” accounts accordingly. In accordance with IAS 40, “Investment Property”, property that meets the definition of investment property is classified and accounted for as “Investment property”. Therefore, the Company reclassified “inventories” (Land held for construction site) amounting to $1,517,756, “property, plant and equipment – Property held for lease – Land” amounting to $3,267,922, “property, plant and equipment – Property held for lease –Buildings” amounting to $2,727,251 and “Investment in real estate” (shown as “assets- others”) amounting to $271,118 to “Investment property” by $7,784,047.
(5) The Company contracted with National Taiwan University to provide construction of the government’s infrastructure assets for public services and operate those assets for Changxing St. Campus for 32 years and 6 months, and for Shuiyuan Campus for 32 years and 4 months after construction is completed. When the term of operating period expires, the underlying infrastructure assets will be transferred to National Taiwan University without consideration. The current accounting standards in R.O.C. regulate that costs incurred in the construction shall be recognized as acquisition costs of fixed assets and amortized over the operating period. In accordance with IFRIC 12, “Service Concession Arrangements”, construction costs of a service concession arrangement shall be allocated to construction services and operating services based on their relative fair values, and the operator subsequently recognizes and measures revenue in accordance with IAS 11, “Construction Contracts”, and IAS 18, “Revenue”, respectively, for the services it performs. The fair values are determined based on the way the grantor pays considerations to the operator specified in the agreement, and are recognized as intangible assets or financial assets. The Company therefore reclassified “property, plant and equipment – Property held for lease –Buildings” amounting to $3,213,345 and “property, plant and equipment – Machinery and equipment” amounting to $150,146 to “other intangible assets” by $3,397,138, and increased “Undistributed earnings” by $33,647 at the opening IFRS balance sheet date.
(6) The current accounting standards in R.O.C. regulate that reserve for land revaluation increment tax should be presented under ‘Reserves - reserve for land revaluation increment tax’. However, in accordance with IAS 12, ‘Income Taxes’, land revaluation increment tax is within the scope of income taxes, and should be presented under ‘Deferred income tax liabilities’. Therefore, the Company increased deferred income tax liabilities and decreased reserves - reserve for land revaluation increment tax both by $495,328 on the date of transition to IFRSs.
(7) In accordance with current accounting standards in R.O.C., for the Company’s long-term lease contracts with variable rents which are adjusted year by year, the lease payment is recognised as an expense for each period based on each rent agreement. However, in accordance with IAS 17, ‘Leases’, all lease payments stipulated in the lease contracts should be recognised as an expense over the lease term on a straight-line basis. Therefore, the Company increased deferred income tax assets (shown within ‘Assets-others’ in the table above) and other liabilities-others by $68,766 and $404,504, respectively, and decreased undistributed earnings by $335,738 on the date of transition to IFRSs.
(8) The Company has elected to reset the cumulative translation differences arising on the translation of the financial statements of foreign operations under R.O.C. GAAP to zero on the date of transition to IFRSs, and to deal with translation differences arising subsequent to the transition date in accordance with IAS 21, ‘The Effects of Changes in Foreign Exchange Rates’. Therefore, the Company increased cumulative translation adjustment by $30,317 (shown within
208
‘Shareholders’ equity-others’ in the table above) and decreased undistributed earnings by $30,317 on the date of transition to IFRSs.
2. Reconciliation of balance sheet accounts with material differences between different accounting policies adopted as at December 31, 2012:
AccountingStandardsin R.O.C.
Adjustment IFRSs Remark
ASSETS:Construction contracts receivable $ - $ 914,634 $ 914,634 (1)Inventories 15,522,871 ( 2,432,390) 13,090,481 (1)、(4)Available-for-sale financial assets - non-current 1,581,087 239,919 1,821,006 (3)Other current assets 24,825 494,014 518,839 (2)Property, plant and equipment, net 16,138,473 ( 9,104,510) 7,033,963 (4)、(5)Investment property - 7,625,630 7,625,630 (4)Other intangible assets - 3,315,404 3,315,404 (5)Others 15,157,265 ( 595,540) 14,561,725 (2)、(3)、(4)、(7)Total assets 48,424,521 457,161 48,881,682Liabilities:Construction contracts payable - 633,630 633,630 (1)Receipts in advance 2,331,351 ( 633,630) 1,697,721 (1)Land value incremental reserve 495,328 ( 495,328) - (6)Deferred tax liabilities - 496,139 496,139 (6)Other liabilities - other 67,226 542,875 610,101 (7)Others 28,196,670 124,564 28,321,234Total liabilities 31,090,575 668,250 31,758,825Stockholders’ equityUndistributed earnings (accumulated deficit) 578,535 ( 5,258,278) ( 4,679,743) (2)、(5)、(7)Net income 1,785,930 4,803,225 6,589,155 (2)、(5)、(7)Others 14,969,481 243,964 15,213,445 (3)Total stockholders’ equity 17,333,946 ( 211,089) 17,122,857Total liabilities and stockholders’ equity 48,424,521 457,161 48,881,682
Reasons for differences are outlined below:(1) In accordance with IAS 11, ‘Construction Contracts’, an entity should present the
considerations received from or paid to customers due to construction contracts as assets or liabilities. Therefore, the Company increased due from customers on construction contracts and due to customers on construction contracts both by $914,634, and decreased inventories and advances received both by $633,630, on the date of transition to IFRSs.
(2) If the Company is required to provide construction services together with construction materials in order to perform its contractual obligation to deliver real estate to the buyers, the revenue from the ‘off plan’ houses sale transactions is recognized on a percentage-of-completion basis, simultaneously when it meets the recognition criteria specified in EITF 78-
Prince Housing & Development Corp . Annual Report 2012
209
099. An agreement for the construction of real estate is a construction contract within the scope of IAS 11, “Construction Contracts”, and IAS 11 applies only when the buyer is able to specify the major structural elements of the design of the real estate before construction begins and/or specify major structural changes once construction is in progress. The buyers of the Company’s ‘off plan’ houses sale contracts have only limited ability to affect the design of the real estate or have ability to specify minor changes to the basic design of the real estate only. Therefore, in accordance with IFRIC 15, “Agreements for the Construction of Real Estate”, the Company’s ‘off plan’ houses sale contracts belong to the agreements of sale of goods, which are within the scope of IAS 18, “Revenue” and, accordingly, revenue from those ‘off plan’ houses sale contracts is accounted for as sale of goods under IAS 18. In addition, In accordance with EITF 74-083 and EITF 84-025, selling expenses the Company paid for the construction contract shall be deferred first, and then shall be reclassified as expenses on a percentage-of-completion basis. Those selling expenses which are not probable to produce the inflow of future economic benefit shall be expensed as incurred. The Company, therefore, decreased “Undistributed earnings” by $4,950,820, decreased “prepayments (deferred selling expenses)” (shown as “assets - others” above) by $532,596, increased “other current assets - other” (deferred selling expenses) by $494,014, increased “operating revenue” by $10,972,512, increased “operating costs” by $635,916 and decreased “other revenues” by $1,709 at the opening IFRS balance sheet date.
(3) In accordance with the amended “Rules Governing the Preparation of Financial Statements by Securities Issuers”, dated July 7, 2011, unlisted stocks and emerging stocks held by the Company
should be measured at cost and recognized in “Financial assets carried at cost”. However, in accordance with IAS 39, “Financial Instruments: Recognition and Measurement”, investments in equity instruments without an active market but with reliable fair value measurement (i.e. the variability of the estimation interval of reasonable fair values of such equity instruments is insignificant, or the probability for these estimates can be made reliably) should be measured at fair value. Therefore, the Company decreased “financial assets carried at cost - non-current” (shown as “assets - others” above), and increased “available-for-sale financial assets - non-current” both by $74,907, and designated such financial assets carried at cost as available-for-sale financial assets, and increased other comprehensive income by $165,012, which was the difference between the fair value and the carrying amount, at the opening IFRS balance sheet date in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” amended on December 22, 2011.
(4) In accordance with current accounting standards in R.O.C., the Company’s real estate that is leased to others and land held for gaining long-term capital increment and not for normal business or sale in short-term and land held whose future use purpose has not been determined are presented in the “Fixed assets”, “Inventory” and “Investment in real estate” accounts accordingly. In accordance with IAS 40, “Investment Property”, property that meets the definition of investment property is classified and accounted for as “Investment property”. Therefore, the Company reclassified “inventories” (Land held for construction site) amounting to $1,517,756, “property, plant and equipment – Property held for lease – Land” amounting to $3,205,959, “property, plant and equipment – Property held for lease –Buildings” amounting to $2,630,797 and “Investment in real estate” (shown as “assets-
210
others”) amounting to $271,118 to “Investment property” by $7,625,630.(5) The Company contracted with National Taiwan University to provide construction of the
government’s infrastructure assets for public services and operate those assets for Changxing St. Campus for 32 years and 6 months, and for Shuiyuan Campus for 32 years and 4 months after construction is completed. When the term of operating period expires, the underlying infrastructure assets will be transferred to National Taiwan University without consideration. The current accounting standards in R.O.C. regulate that costs incurred in the construction shall be recognized as acquisition costs of fixed assets and amortized over the operating period. In accordance with IFRIC 12, “Service Concession Arrangements”, construction costs of a service concession arrangement shall be allocated to construction services and operating services based on their relative fair values, and the operator subsequently recognizes and measures revenue in accordance with IAS 11, “Construction Contracts”, and IAS 18, “Revenue”, respectively, for the services it performs. The fair values are determined based on the way the grantor pays considerations to the operator specified in the agreement, and are recognized as intangible assets or financial assets. The Company, therefore, reclassified “property, plant and equipment – Property held for lease –Buildings” amounting to $3,135,908 and “property, plant and equipment – Machinery and equipment” amounting to $131,846 to “other intangible assets” by $3,315,404, increased “Undistributed earnings” by $33,647, decreased “operating costs” by $77,436 and increased “operating expenses” by $63,433 at the opening IFRS balance sheet date.
(6) The current accounting standards in R.O.C. regulate that reserve for land revaluation increment tax should be presented under ‘Reserves - reserve for land revaluation increment tax’. However, in accordance with IAS 12, ‘Income Taxes’, land revaluation increment tax is within the scope of income taxes, and should be presented under ‘Deferred income tax liabilities’. Therefore, the Company increased deferred income tax liabilities and decreased reserves - reserve for land revaluation increment tax both by $495,328 on the date of transition to IFRSs.
(7) In accordance with current accounting standards in R.O.C., for the Company’s long-term lease contracts with variable rents which are adjusted year by year, the lease payment is recognised as an expense for each period based on each rent agreement. However, in accordance with IAS 17, ‘Leases’, all lease payments stipulated in the lease contracts should be recognised as an expense over the lease term on a straight-line basis. Therefore, the Company increased deferred income tax assets (shown within ‘Assets-others’ in the table above) and other liabilities-others by $92,288 and $542,875, respectively, decreased undistributed earnings by $335,738, increased operating expenses by $138,371 and decreased tax expenses by $23,522, on the date of transition to IFRSs.
3. Reconciliation of income statement accounts with material differences between different accounting policies adopted for the three-month period ended March 31, 2012:
Prince Housing & Development Corp . Annual Report 2012
211
AccountingStandardsin R.O.C.
Adjustment IFRSs Remark
Operating revenue $ 14,657,742 $ 10,972,512 $ 25,630,254 (1)Operating costs ( 9,984,097) ( 5,345,213) ( 15,329,310) (1)Operating expenses ( 2,783,795) ( 614,257) ( 3,398,052) (2)、(3)Net operating income 1,889,850 5,013,042 6,902,892 (2)Non-operating revenue and expenses ( 71,286) 15,109 ( 56,177) (4)、(5)Income before tax 1,818,564 5,028,151 6,846,715 (4)Income tax expense ( 42,719) ( 226,487) ( 269,206) (3)、(4)Minority interest 10,085 1,561 11,646Net income 1,785,930 4,803,225 6,589,155
(1) Adjustment of operating revenue and operating costs, please refer to Note 13B2.(2) and (5).(2) Adjustment of operating expenses, please refer to Note 13B2.(2), (5) and (7).(3) The current accounting standards in R.O.C. regulate that the land revaluation increment tax
paid by the Company for the sale of land should be presented under ‘Operating expenses’. However, in accordance with IAS 12, ‘Income Taxes’, land revaluation increment tax is within the scope of income taxes, and should be presented under ‘Income tax expense’. Therefore, the Company increased income tax expense and decreased operating expenses both by $249,873 on the date of transition to IFRSs.
(4) Adjustment of operating expenses, please refer to Note 13B2. (7).C. The Company has elected the following exemptions in accordance with IFRS 1, “First-time
Adoption of International Financial Reporting Standards” and “Rules Governing the Preparation of Financial Statements by Securities Issuers” that are expected to be applicable in 2013:1. Business combinations
The Company has elected not to apply the requirements in IFRS 3, “Business Combinations”,retrospectively to business combinations that occurred prior to transition to IFRSs.
2. Share-based payment transactionsThe Company has elected not to apply the requirements in IFRS 2, “Share-based Payment”, retrospectively to equity instruments that were vested arising from share-based payment transactions prior to transition to IFRSs.
3. Deemed costFor the land which was accounted for under ‘Property, plant and equipment’ that was revalued under R.O.C. GAAP before the date of transition to IFRSs, but was later accounted for under ‘Inventories’ because its future use purpose had not been decided, and was reclassified to ‘Investment property’ on the date of transition to IFRSs, the Company has elected to use the revalued amount under R.O.C. GAAP at the date of the revaluation as the ‘deemed cost’ of the asset under IFRSs.
4. Employee benefitsThe Company has elected to recognize all cumulative actuarial gains and losses for all employee benefit plans in ‘retained earnings’ at the opening IFRS balance sheet date, and to disclose the information of present value of defined benefit obligation, fair value of plan assets, gain or loss on plan assets and experience adjustments under the requirements of
212
paragraph 120A (P), IAS 19, “Employee Benefits”, based on their prospective amounts for financial periods from the opening IFRS balance sheet date.
5. Cumulative translation differencesThe Company has elected to reset the cumulative translation differences arising on the translation of the financial statements of foreign entities under ROC GAAP to zero at the opening IFRS balance sheet date, and to deal with translation differences arising subsequent to the opening IFRS balance sheet date in accordance with IAS 21, “The Effects of Changes in Foreign Exchange Rates”.
6. Designation of previously recognized financial instrumentsThe Company has elected to designate certain “financial assets carried at cost” as available-for-sale financial assets.
7. Borrowing costsThe Company has elected to apply the transitional provisions in paragraphs 27 and 28 of IAS 23, “Borrowing Costs”, amended in 2007 from the opening IFRS balance sheet date.
The selection of exemptions above may be different from the actual selection at the date of transition to IFRSs due to the issuance of related regulations by competent authorities, changes in economic environment, or changes in the evaluation of the impact of the Company’s selection of exemptions.
Annual Report 2012VII
Review of Financial Conditions, Operating Results, and Risk
Management
214
VII. Review of Financial Conditions, Operating Results, and Risk ManagementVI. Financial Information
7.1 FAnalysis of Financial Status
2012 2011Difference
Amount % NoteCurrent Assets 21,001,978 24,919,460 (3,917,482) (15.72) 1Fund and Investment 7,100,375 6,296,090 804,285 12.77 1Other Financial Assets 808,337 147,983 660,354 446.24 2Fixed Assets 9,660,797 9,943,368 (282,571) (2.84) 1Other Assets 1,609,587 1,212,838 396,749 32.71 3Total Assets 40,181,074 42,519,739 (2,338,665) (5.50) 1Current Liabilities 13,505,717 17,059,144 (3,553,427) (20.83) 4Long-term Liabilities 9,522,182 10,102,875 (580,693) (5.75) 1 Other Liabilities 203,348 188,869 14,479 7.67 1Total Liabilities 23,231,247 27,350,888 (4,119,641) (15.06) 1Capital stock 11,944,765 10,858,877 1,085,888 10.00 1Capital surplus 521,293 521,293 0 0.00 1Retained Earnings 3,208,115 3,060,374 147,741 4.83 1Unrealized Gain or Loss on Financial Instruments 1,416,607 851,992 564,615 66.27 5
Cumulative Translation Adjustment
(43,643) (30,317) 13,326 43.96 6
Net Loss Not Recognized as Pension Cost
(36,870) (32,928) 3,942 11.97 1
Treasury Stock (60,440) (60,440) 0 0.00 1Total Stockholders' Equity 16,949,827 15,168,851 1,780,976 11.74 1
Item
Year
Unit;NT $ thousands
1. Changes do not over 20%.2. Other financial assets: decrease in pledge deposit.3. Other assets: guarantee deposits increasing4. Current liabilities: long term loans due within one year.5. Unrealized gain or loss on financial instruments: gain recognized on financial assets in available-
for-sale.6. Cumulative translation adjustment: changes in foreign exchange rate.
Prince Housing & Development Corp . Annual Report 2012
215
7.2 Analysis of Operating Results
2012 2011Difference
Amount %Gross Sales 9,052,719 9,807,196 (754,477) -7.69Less: Sales Returns (1,160,222) (784,091) 376,131 47.97Net Sales 7,892,497 9,023,105 (1,130,608) -12.53Cost of Sales (4,676,377) (5,360,256) (683,879) -12.76Gross Profit 3,216,120 3,662,849 (446,729) -12.20Operating Expenses (1,656,309) (1,428,003) 228,306 15.99Operating Income 1,559,811 2,234,846 (675,035) -30.20Non-operating Income and Gains 679,538 497,591 181,947 36.57Non-operating Expenses and Losses
(403,376) (412,080) (8,704) -2.11
Income Before Tax 1,835,973 2,320,357 (484,384) -20.88Tax Benefit (Expense) (50,043) (6,226) 43.817 703.77Net Income 1,785,930 2,314,131 (528,201) -22.83
Item
Year
Unit;NT $ thousands
1. Sales returns: increasing in sales return results from the return and giveaway 2. Gross Profit and Net Income decrease because of the decreasing in gross sales and increasing in
operating expenses. 3. Non-operating Income and Gains increases because of investment income.4. Tax Benefit (Expense) increases because of the increasing of undistributed earnings.
216
7.3 Analysis of Cash Flow
7.3.1 Cash Flow Analysis for the Current Year
Cash and Cash Equivalents, Beginning of
Year (1)
Net Cash Flow from Operating
Activities (2)
Cash Outflow(3)
Cash Surplus(Deficit)
(1)+(2)-(3)
Leverage of Cash Deficit
Investment Plans
Financing Plans
$281,987 $8,357,310 ($5,027,924) $3,611,373 None None
Cash flow in 2012:1. Cash outflow from operating activities: $8,357,3102. Cash inflow from investing activities: ($1,677,304)3. Cash inflow from financing activities: ($3,350,620)
Unit;NT $ thousands
2012 2011 Difference
Cash Flow Ratio (%) 61.88% (17.43%) N/ACash Flow Adequacy Ratio (%) 83.94% 22.60% 271.42%Cash Reinvestment Ratio (%) 32.84% (3.74%) N/A
Item
Year
7.3.2 Remedy for Cash Deficit and Liquidity Analysis
7.3.3 Cash Flow Analysis for the Current Year
Cash and Cash Equivalents, Beginning of
Year (1)
Net Cash Flow from Operating
Activities (2)
Cash Outflow(3)
Cash Surplus(Deficit)
(1)+(2)-(3)
Leverage of Cash Deficit
Investment Plans
Financing Plans
3,611,373 1,249,537 (4,019,663) 841,247 None None
Cash flow in 2011:1. Cash inflow from operating activities: Completion of current construction in progress.2. Cash outflow from investing activities: Increase in long term equity investment.3. Cash outflow from financing activities: Loan repayment and payment of cash dividend.
Prince Housing & Development Corp . Annual Report 2012
217
7.4 Major Capital Expenditure Items:
Major capital expenditure occurred recent years is coming from cash flow from operating activities.
7.5 Investment Policy in Last Year, Main Causes for Profits or Losses, Improvement Plans and the Investment Plans for the Coming Year:
Net income of our investments Ta-Chen Construction & Engineering Corp, and Time Square
International Co., Ltd are $292,425 thousands, and $138,779 thousands respectively. Net losses of
The Splendor Hotel Taichung is ($16,972) thousands. The main reasons of these losses are described
as following:
• The Splendor Hotel Taichung: occupation rate has raised, however, the cost of modification of
market place occurred losses.
7.6 Analysis of Risk Management
7.6.1 Effects of Changes in Interest Rates, Foreign Exchange Rates and Inflation on Corporate Finance, and Future Response Measures
(1) Interest rate
In the future, the company will carefully monitor interest rate movements and adopt proper
hedging strategies and other capital markets financing instruments to ensure that our financing
costs are at a comparatively low level.
(2) Foreign exchange rates
None.
(3) Inflation
Our strategy for inflation impact is joint procurement to achieve best cost control.
7.6.2 Policies, Main Causes of Gain or Loss and Future Response Measures with Respect to High-risk, High-leveraged Investments, Lending or Endorsement Guarantees, and Derivatives Transactions
The company did not engage in any high-risk or high-leveraged investments. The transactions
and procedures related to lending and endorsement are based on the Company’s “Procedures of
Lending” and “Procedures of Endorsement Guarantee.”.
7.6.3 Future Research & Development Projects and Corresponding Budget
None.
218
7.6.4 Effects of and Response to Changes in Policies and Regulations Relating to Corporate Finance and Sales
Prince always pays close attention to any changes in local and foreign policies and makes
appropriate amendments to our systems when necessary. During 2012 and as of the date of
publication of this annual report, changes in related laws had impacted the investors’ willing to
purchase. Prince has now broadened our business to income-producing property to balance the
wave in local and foreign policies.
7.6.5 Effects of and Response to Changes in Technology and in Industry Relating to Corporate Finance and Sales
None.
7.6.6 The Impact of Changes in Corporate Image on Corporate Risk Management, and the Company’s Response Measures
None.
7.6.7 Expected Benefits from, Risks Relating to and Response to Merger and Acquisition Plans
None.
7.6.8 Expected Benefits from, Risks Relating to and Response to Factory Expansion Plans
None.
7.6.9 Risks Relating to and Response to Excessive Concentration of Purchasing Sources and Excessive Customer Concentration
None.
7.6.10 Effects of, Risks Relating to and Response to Large Share Transfers or Changes in Shareholdings by Directors, Supervisors, or Shareholders with Shareholdings of over 10%
Director Zhoung-Jian, Wu resigned in May 02 2012.
The new director Yong-Yuan Investment Co., Ltd (Rep: Zhoung-Huo, Wu)
was elected in the shareholders meeting 2012 and taking office on Jun 20, 2012.
Prince Housing & Development Corp . Annual Report 2012
219
7.6.11 Effects of, Risks Relating to and Response to Changes in Control over the Company
None.
7.6.12 Litigation or Non-litigation Matters
None.
7.6.13 Other Major Risks
None.
VIII. Special Disclosure
None.
Annual Report 2012VIII
Special Disclosure
Prince Housing & Development Corp . Annual Report 2012
221
VII
I. Sp
ecia
l Dis
clos
ure
I. R
elat
ed P
arty
(I)
Con
solid
ated
fina
ncia
l sta
tem
ents
of t
he re
late
d pa
rty
1. R
elat
ed p
arty
(1)
Org
aniz
atio
nal s
truct
ure
of re
late
d pa
rty:
222
(2)
Bas
ic D
ata
of A
ffilia
ted
Ente
rpris
es
Nam
e of
Cor
pora
tion
Dat
e of
E
stab
lishm
ent
Add
ress
Cap
ital
Maj
or B
usin
ess/
Prod
uctio
n It
ems
Prin
ce H
ousi
ng&
Dev
elop
men
t Cor
p.19
73.0
9.22
19F.
, No.
30, Z
hong
zhen
g S.
Rd.
, Yo
ngka
ng D
ist.,
Tai
nan
City
$ 11
,944
,764
Bui
ld p
ubic
hou
sing
, com
mer
ical
bu
ildin
gs, p
arki
ng L
ot, p
arki
ng to
wer
an
d sa
le a
nd re
ntTa
-Che
n C
onst
ruct
ion
& E
ngin
eerin
g C
orp
1959
.05.
1119
F., N
o.30
, Zho
ngzh
eng
S. R
d.,
Yong
kang
Dis
t., T
aina
n C
ity1,
240,
000
Arc
hite
ctur
e de
sign
and
con
stru
ctio
n
Prin
ce U
tility
Co.
, Ltd
1977
.03.
0119
F., N
o.30
, Zho
ngzh
eng
S. R
d.,
Yong
kang
Dis
t., T
aina
n C
ity30
,700
Elec
tric
Pow
er a
nd w
ater
sup
ply
pipe
line
setu
pPr
ince
Apa
rtmen
t Man
agem
ent M
aint
ain
Co.
, Ltd
1996
.08.
0518
F., N
o.30
, Zho
ngzh
eng
S. R
d.,
Yong
kang
Dis
t., T
aina
n C
ity30
,000
Apa
rtmen
t man
agem
ent a
nd m
aint
ain
serv
ice
Prin
ce H
ousi
ng In
vest
men
t Co.
, Ltd
1997
.06.
27C
itco
Bui
ldin
g W
ickh
ams
Cay
. P.
O B
ox 6
22, R
oad
Tow
n, T
orto
l, B
ritis
h V
irgin
Isla
nds
140,
413
Ove
rsea
s In
vest
men
ts
Prin
ce B
iote
chno
logy
Co.
, Ltd
1999
.10.
3021
F., N
o.11
, Son
ggao
Rd.
, Xin
yi D
ist.,
Ta
ipei
City
5,00
0R
esea
rch
and
deve
lopm
ent o
f mak
ing
med
icin
e w
ith b
iote
chno
logy
Bio
Sun
Tech
nolo
gy C
o., L
td19
96.1
1.11
21F.
, No.
11, S
ongg
ao R
d., X
inyi
Dis
t.,
Taip
ei C
ity46
,880
R&
D o
f mak
ing
med
icin
e w
ith
biot
echn
olog
y an
d ex
port/
impo
rt fu
ngic
ide
Prin
ce S
ecur
ity C
o., L
td20
00.0
4.07
17F.
, No.
30, Z
hong
zhen
g S.
Rd.
, Yo
ngka
ng D
ist.,
Tai
nan
City
131,
726
Secu
rity
serv
ice
Prin
ce T
a-C
hen
Inve
stm
ent C
o., L
td20
00.0
5.30
21F.
, No.
11, S
ongg
ao R
d., X
inyi
Dis
t.,
Taip
ei C
ity12
2,73
8In
vest
men
ts
Don
g-Fe
ng E
nter
pris
es C
o., L
td19
63.0
2.28
19F.
, No.
30, Z
hong
zhen
g S.
Rd.
, Yo
ngka
ng D
ist.,
Tai
nan
City
204,
002
Inve
stm
ent o
f cul
ture
d fis
h, w
ater
po
nd, a
rchi
tect
ure
and
cem
ent
indu
strie
s
The
Sple
ndor
Hot
el T
aich
ung
2006
.10.
25N
o.10
49, J
ianx
ing
Rd.
, Wes
t Dis
t.,
Taic
hung
City
1,95
0,00
0To
uris
t Hot
el
Che
ng-S
hi C
onst
ruct
ion
Co.
, Ltd
1976
.01.
2219
F., N
o.30
, Zho
ngzh
eng
S. R
d.,
Yong
kang
Dis
t., T
aina
n C
ity10
1,00
0C
onst
ruct
ion
indu
stry
Uni
t ;N
T $
thou
sand
s
Prince Housing & Development Corp . Annual Report 2012
223
Nam
e of
Cor
pora
tion
Dat
e of
E
stab
lishm
ent
Add
ress
Cap
ital
Maj
or B
usin
ess/
Prod
uctio
n It
ems
Prin
ce C
apita
l Inc
.20
00.0
9.26
23F.
-1, N
o.16
1, S
ongd
e R
d., X
inyi
D
ist.,
Tai
pei C
ity26
,727
Ove
rsea
s In
vest
men
ts
Prin
ce V
entu
res
USA
Inc.
2000
.09.
2623
F.-1
, No.
161,
Son
gde
Rd.
, Xin
yi
Dis
t., T
aipe
i City
20,5
11O
vers
eas
Inve
stm
ents
Tim
e Sq
uare
Inte
rnat
iona
l Co.
, Ltd
2007
.01.
22N
o.10
, Sec
. 5, Z
hong
xiao
E. R
d., X
inyi
D
ist.,
Tai
pei C
ity60
0,00
0H
otel
Jin-
Yi-X
ing
plyw
ood
Co.
, Ltd
1969
.03.
1018
F., N
o.30
, Zho
ngzh
eng
S. R
d.,
Yong
kang
Dis
t., T
aina
n C
ity15
2,00
0Pa
rticl
e bo
ard
man
ufac
ture
Prin
ce P
rope
rty M
anag
emen
t C
onsu
lting
Co.
199
2.11
.09
19F.
, No.
30, Z
hong
zhen
g S.
Rd.
, Yo
ngka
ng D
ist.,
Tai
nan
City
171,
466
Man
agem
ent t
he le
asin
g of
resi
dent
ial
and
com
mer
cial
bui
ldin
g an
d re
al
esta
te
Early
Suc
cess
Inve
stm
ents
Lim
ited
2007
.05.
09P.
O.B
ox.9
57,O
ffsh
ore
Inco
rpor
atin
es
Cen
tre, R
oad
Tow
n, T
orto
la, B
ritis
h V
irgin
Isla
nds
51,1
02O
vers
eas
Inve
stm
ents
Sple
ndor
Ass
ets
Man
agem
ent C
o., L
td20
08.0
7.29
16F.
-11,
No.
1049
, Jia
nxin
g R
d., W
est
Dis
t., T
aich
ung
City
1,00
0M
anag
emen
t Con
sulti
ng
Prin
ce A
sset
s M
anag
emen
t LLC
.20
07.0
8.02
Uni
t 220
4, 2
2nd
Floo
r, C
onve
ntio
n Pl
aza
Off
ice
Tow
er, N
O. 1
Har
bour
R
oad,
Wan
chai
, Hon
g K
ong.
62,6
32O
vers
eas
Inve
stm
ents
Ta C
hen
Inte
rnat
iona
l (B
rune
i) C
orp
2010
.11.
0934
,3rd
Flo
or, B
ritan
nia
Hou
se,J
alan
C
ator
Ban
dar s
eri B
egaw
an B
S881
1 B
rune
i Dar
ussa
lam
5,91
6O
vers
eas
Inve
stm
ents
Ta C
hen
Con
stru
ctio
n &
Eng
inee
ring
(Vie
tnam
) Cor
p.20
11.0
7.29
Vie
tnam
, 5,
770
Ove
rsea
s In
vest
men
ts
Che
ng-S
hi In
vest
men
t Hol
ding
Co.
2012
.12.
3119
F., N
o.30
, Zho
ngzh
eng
S. R
d.,
Yong
kang
Dis
t., T
aina
n C
ity1,
208,
072
Inve
stm
ent
Uni
t ;N
T $
thou
sand
s
(3)
Dat
a of
Com
mon
Sha
reho
lder
s of
Tre
ared
-as
Con
trolle
d C
ompa
nies
and
Affi
liate
s: N
one
(4)
Bus
ines
s of
Prin
ce H
ousi
ng&
Dev
elop
men
t Co
and
its A
ffilia
ted
Ente
rpris
es
(i)
The
busi
ness
of P
rince
Hou
sing
& D
evel
opm
ent C
o. c
over
s: c
onst
ruct
ion,
pow
er a
nd w
ater
sup
ply
pipe
line
setu
p, re
al e
stat
e ap
prai
sal
and
agen
t, ov
erse
as in
vest
men
ts, R
ecre
atio
n an
d en
terta
inm
ent m
anag
emen
t, R
&D
of m
akin
g m
edic
ine
with
bio
tech
nolo
gy a
nd e
xpor
t/
224
impo
rt fu
ngic
ide,
Apa
rtmen
t man
agem
ent a
nd m
aint
ain
serv
ice,
Sec
urity
ser
vice
, hot
el, a
nd p
artic
le b
oard
man
ufac
ture
etc
.
(ii)
Bus
ines
s w
ith re
latio
nshi
p am
ong
affil
iate
d en
terp
rises
as
follo
win
g:
O
ur p
roje
cts
are
cons
igne
d to
Ta-
Che
n C
onst
ruct
ion
& E
ngin
eerin
g C
orpo
ratio
n, C
heng
-Shi
Con
stru
ctio
n C
o., L
td a
nd P
rince
Util
ity
Co.
, Ltd
. For
sav
ing
cost
, par
ts o
f re
sidu
al h
ouse
s w
ere
cons
igne
d to
Prin
ce R
eal e
stat
e A
gent
Co.
, Ltd
to s
ell.
To s
uppl
y af
ter-
sell
serv
ices
, par
ts o
f bui
ldin
gs w
ere
cons
igne
d to
Prin
ce A
partm
ent M
anag
emen
t Mai
ntai
n C
o., L
td a
nd P
rince
Sec
urity
Co.
, Ltd
.
(5)
Dire
ctor
s, S
uper
viso
rs, a
nd P
resi
dent
of A
ffilia
ted
ente
rpris
es
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Prin
ce H
ousi
ng&
D
evel
opm
ent C
orp.
Cha
irman
Hon
g-Ya
o In
vest
men
t Co.
Ltd
2.07
1.04
30.
17%
Cha
irman
(Hon
g-Ya
o R
ep.)
Na-
Tian
Zhu
ang
14,7
19,9
191.
23%
Man
agin
g D
irect
orFu
-She
ng D
evel
opm
ent C
o. L
td8,
153,
800
0.68
%M
anag
ing
Dire
ctor
(Fu-
Shen
g R
ep.)
Min
g-H
ui C
hen
5,22
2,25
20.
44%
Man
agin
g D
irect
orB
o-M
ing
Hou
16,6
07,7
891.
39%
Man
agin
g D
irect
orYu
n W
en In
vest
men
t Co.
Ltd
11,1
71,6
380.
94%
Dire
ctor
(Yun
Wen
Rep
.)C
heng
-Ho
Wu
3,88
8,08
40.
33%
Dire
ctor
Zhao
-Mei
Wu
Zeng
29,2
69,9
462.
45%
Dire
ctor
Cen
g-Lo
ng In
vest
men
t Co.
Ltd
18,9
42,9
421.
59%
Dire
ctor
(Cen
g-Lo
ng R
ep.)
Yin
g-Zh
i Zhu
ang
538,
412
0.05
%D
irect
orC
heng
-Da
Inve
stm
ent C
o. L
td5,
081,
877
0.43
%D
irect
or(C
heng
-Da
Rep
.)Pi
ng-Z
hi W
u8,
850,
310
0.74
%M
anag
ing
Dire
ctor
Jiu-
Fu In
vest
men
t Co.
Ltd
11,3
95,0
680.
95%
Man
agin
g D
irect
or( J
iu-F
u R
ep.)
Li-L
ing
Zhen
g
-
-
Dire
ctor
Bo-
Yi H
ou12
,092
,865
1.01
%D
irect
orR
en-Q
in C
hen
763,
204
0.06
%D
irect
orJu
n-C
heng
Guo
-
- D
irect
orJi
ng-X
ing
Che
n44
9,10
20.
04%
Dire
ctor
Tai-B
o In
vest
men
t Co.
Ltd
43,2
87,3
993.
62%
Dire
ctor
(Tai
-Bo
Rep
.)Ji
an-D
e W
u5,
736,
987
0.48
%D
irect
orH
ong-
Yan
Jhua
ng38
1,26
30.
03%
Prince Housing & Development Corp . Annual Report 2012
225
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Dire
ctor
Cha
o-W
en H
uang
11,7
58,4
550.
98%
Supe
rvis
orG
uang
-Wei
Inve
stm
ent C
o.Lt
d15
,030
,754
1.26
%Su
perv
isor
(Gua
ng-W
ei R
ep.)
Yin
g-N
an Z
huan
g1,
148,
164
0.10
%Su
perv
isor
Da-
Xio
ng X
u50
3,24
20.
04%
Ta-C
hen
Con
stru
ctio
n &
En
gine
erin
g C
orp
Cha
irman
/Sup
ervi
sor
Che
ng-S
hi In
vest
men
t Hol
ding
Co.
124,
000,
000
100.
00%
Cha
irman
( C
heng
-Shi
Rep
.)R
ong-
Tian
Zha
ng
-
-
Dire
ctor
(Che
ng-S
hi R
ep.)
Jun-
Lian
g Li
n
-
-
Dire
ctor
(Che
ng-S
hi R
ep.)
Jian
-Yin
g W
u
-
-
Supe
rvis
or( C
heng
-Shi
Rep
.)Ya
-Tin
g H
sue
-
-
Prin
ce U
tility
Co.
, Ltd
Cha
irman
/Sup
ervi
sor
Che
ng-S
hi In
vest
men
t Hol
ding
Co.
3,07
0,00
010
0.00
%C
hairm
an( C
heng
-Shi
Rep
.)M
ing-
Fan
Xie
-
- D
irect
or( C
heng
-Shi
Rep
.)K
un-B
o Ye
-
- D
irect
or( C
heng
-Shi
Rep
.)Ji
an-Y
ing
Wu
-
- D
irect
or( C
heng
-Shi
Rep
.)W
en-Z
hen
Qiu
-
- Su
perv
isor
( Prin
ce R
ep.)
Jun-
Lian
g Li
n
-
-
Prin
ce A
partm
ent
Man
agem
ent M
aint
ain
Co.
, Ltd
Cha
irman
/Sup
ervi
sor
Prin
ce P
rope
rty M
anag
emen
t Con
sulti
ng C
o.3,
000,
000
100.
00%
Cha
irman
( Prin
ce P
rope
rty R
ep.)
Min
g-Fa
n X
ie
-
-
Dire
ctor
( Prin
ce P
rope
rty R
ep.)
Shen
g-W
e M
ia
-
-
Dire
ctor
( Prin
ce P
rope
rty R
ep.)
Yin
-Jia
Zhe
ng
-
-
Dire
ctor
( Prin
ce P
rope
rty R
ep.)
Kun
-Bo
Ye
-
-
Dire
ctor
( Prin
ce P
rope
rty R
ep.)
Wen
-Zhe
n Q
iu
-
-
Dire
ctor
( Prin
ce P
rope
rty R
ep.)
Jian
-Yin
g W
u
-
-
Supe
rvis
or (
Prin
ce P
rope
rty R
ep.)
Da-
Cha
ng D
ai
-
-
Prin
ce H
ousi
ng
Inve
stm
ent C
o., L
tdD
irect
orPr
ince
Hou
sing
& D
evel
opm
ent C
orp.
428
100.
00%
Cha
irman
( Prin
ce R
ep.)
Nan
-Tia
n Zh
uang
-
-
Prin
ce B
iote
chno
logy
C
o., L
td
Cha
irman
/Sup
ervi
sor
Prin
ce H
ousi
ng&
Dev
elop
men
t Cor
p.25
0,00
050
.00%
Cha
irman
( Prin
ce R
ep.)
Nan
-Tia
n Zh
uang
-
- D
irect
or( P
rince
Rep
.)M
ing-
Fan
Xie
-
- D
irect
or( P
rince
Rep
.)Ji
an-Y
ing
Wu
-
-
226
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Dire
ctor
Ta-C
hen
Con
stru
ctio
n &
Eng
inee
ring
Cor
p22
5,00
045
.00%
Dire
ctor
( Da-
Che
ng R
ep.)
Shen
g-W
ei M
ai
-
-
Supe
rvis
or (
Prin
ce R
ep.)
Jun-
Lian
g Li
n
-
-
Bio
Sun
Tech
nolo
gy C
o.,
Ltd
Cha
irman
/Sup
ervi
sor
Prin
ce P
rope
rty M
anag
emen
t Con
sulti
ng C
o4,
688,
000
100%
Cha
irman
( Prin
ce R
ep.)
Min
g-H
ui C
hen
-
- V
ice
Cha
irman
( Prin
ce R
ep.)
Zhao
-Wen
Hua
ng
-
-
Dire
ctor
( Prin
ce R
ep.)
Jian
-Yin
g W
u
-
-
Dire
ctor
( Prin
ce R
ep.)
Bo-
Min
g H
ou
-
-
Dire
ctor
( Prin
ce R
ep.)
Min
g-Fa
n X
ie
-
-
Supe
rvis
or( P
rince
Rep
.)Sh
eng-
Wei
Mai
-
-
Prin
ce S
ecur
ity C
o. L
td.
Dire
ctor
Prin
ce P
rope
rty M
anag
emen
t Con
sulti
ng
13,1
72,6
3610
0.00
%C
hairm
an (P
rince
Pro
perty
Rep
.)M
ing-
Fan
Xie
-
- D
irect
or(P
rince
Pro
pery
Rep
.)X
iao-
Yu J
iang
-
- D
irect
or(P
rince
Pro
pery
Rep
.)W
en-Z
hen
Qiu
-
- D
irect
or(P
rince
Pro
pery
Rep
.)Ji
an-Y
ing
Wu
-
- D
irect
or(P
rince
Pro
pery
Rep
.)Y
ing-
Jie
Zhua
ng
-
-
Dire
ctor
(Prin
ce P
rope
ry R
ep.)
Jun-
Lian
g Li
n
-
-
Supe
rvis
or(P
rince
Pro
pery
Rep
.)X
iao-
Yu J
iang
-
- D
irect
orD
a-C
hang
Dai
-
-
Prin
ce T
a-C
hen
Inve
stm
ents
Cor
p.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.12
,270
,100
99.9
7%C
hairm
an (P
rince
Rep
.)N
a-Ti
an, Z
huan
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Min
g-Fa
n X
ie
-
- D
irect
or (P
rince
Rep
.)Ji
ng-Y
ing
Wu
-
- D
irect
or (P
rince
Rep
.)Sh
eng-
Wei
Mai
-
-
Supe
rvis
or (P
rince
Rep
.)Ju
n-Li
ang
Lin
-
-
Don
-Fun
g C
orp.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.20
,400
,194
100.
00%
Cha
irman
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)M
ing-
Fan
Xie
-
-
Dire
ctor
(Prin
ce R
ep.)
Shen
g-W
ei M
ai
-
- Su
perv
isor
(Prin
ce R
ep.)
Da-
Cha
ng D
ai
-
-
Prince Housing & Development Corp . Annual Report 2012
227
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Dire
ctor
Ta-C
hen
Con
stru
ctio
n &
Eng
inee
ring
Cor
p22
5,00
045
.00%
Dire
ctor
( Da-
Che
ng R
ep.)
Shen
g-W
ei M
ai
-
-
Supe
rvis
or (
Prin
ce R
ep.)
Jun-
Lian
g Li
n
-
-
Bio
Sun
Tech
nolo
gy C
o.,
Ltd
Cha
irman
/Sup
ervi
sor
Prin
ce P
rope
rty M
anag
emen
t Con
sulti
ng C
o4,
688,
000
100%
Cha
irman
( Prin
ce R
ep.)
Min
g-H
ui C
hen
-
- V
ice
Cha
irman
( Prin
ce R
ep.)
Zhao
-Wen
Hua
ng
-
-
Dire
ctor
( Prin
ce R
ep.)
Jian
-Yin
g W
u
-
-
Dire
ctor
( Prin
ce R
ep.)
Bo-
Min
g H
ou
-
-
Dire
ctor
( Prin
ce R
ep.)
Min
g-Fa
n X
ie
-
-
Supe
rvis
or( P
rince
Rep
.)Sh
eng-
Wei
Mai
-
-
Prin
ce S
ecur
ity C
o. L
td.
Dire
ctor
Prin
ce P
rope
rty M
anag
emen
t Con
sulti
ng
13,1
72,6
3610
0.00
%C
hairm
an (P
rince
Pro
perty
Rep
.)M
ing-
Fan
Xie
-
- D
irect
or(P
rince
Pro
pery
Rep
.)X
iao-
Yu J
iang
-
- D
irect
or(P
rince
Pro
pery
Rep
.)W
en-Z
hen
Qiu
-
- D
irect
or(P
rince
Pro
pery
Rep
.)Ji
an-Y
ing
Wu
-
- D
irect
or(P
rince
Pro
pery
Rep
.)Y
ing-
Jie
Zhua
ng
-
-
Dire
ctor
(Prin
ce P
rope
ry R
ep.)
Jun-
Lian
g Li
n
-
-
Supe
rvis
or(P
rince
Pro
pery
Rep
.)X
iao-
Yu J
iang
-
- D
irect
orD
a-C
hang
Dai
-
-
Prin
ce T
a-C
hen
Inve
stm
ents
Cor
p.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.12
,270
,100
99.9
7%C
hairm
an (P
rince
Rep
.)N
a-Ti
an, Z
huan
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Min
g-Fa
n X
ie
-
- D
irect
or (P
rince
Rep
.)Ji
ng-Y
ing
Wu
-
- D
irect
or (P
rince
Rep
.)Sh
eng-
Wei
Mai
-
-
Supe
rvis
or (P
rince
Rep
.)Ju
n-Li
ang
Lin
-
-
Don
-Fun
g C
orp.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.20
,400
,194
100.
00%
Cha
irman
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)M
ing-
Fan
Xie
-
-
Dire
ctor
(Prin
ce R
ep.)
Shen
g-W
ei M
ai
-
- Su
perv
isor
(Prin
ce R
ep.)
Da-
Cha
ng D
ai
-
-
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Sple
ndor
Hot
el
Dire
ctor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.97
,500
,000
50.0
0%C
hairm
an (P
rince
Rep
.)Ju
n-X
ian
Wan
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)Sh
eng-
Wei
Mai
-
-
Dire
ctor
Chi
na M
etal
Pro
duct
s C
o. L
td.
97,5
00,0
0050
.00%
Vic
e C
hairm
an (C
hina
Met
al R
ep.)
Hua
i-Che
n C
hen
-
- D
irect
or (C
hina
Met
al R
ep.)
Min
g-X
ian
He
-
- Su
perv
isor
Jun-
Lin
Cha
i
-
-
Che
ng-S
hi C
onst
ruct
ion
Cor
p.
Dire
ctor
and
Sup
ervi
sor
Che
ng-S
hi In
vest
men
t Hol
ding
Co.
10,1
00,0
0010
0%D
irect
or (C
heng
-Shi
Inve
stm
ent R
ep.)
Min
g-Fa
n X
ie
-
- D
irect
or (C
heng
-Shi
Inve
stm
ent R
ep.)
Zhen
g-Lo
ng C
ai
-
-
Dire
ctor
(Che
ng-S
hi In
vest
men
t Rep
.)Ji
ng-Y
ing
Wu
-
- Su
perv
isor
(Che
ng-S
hi In
vest
men
t Rep
.)D
a-C
hang
Dai
-
-
Tim
es S
quar
e In
tern
atio
nal H
otel
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.60
,000
,000
100.
00%
Cha
irman
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- V
ice
Cha
irman
(Prin
ce R
ep.)
Min
g-H
ui, Z
hen
-
- M
anag
ing
Dire
ctor
(Prin
ce R
ep.)
Zhon
g-Ja
n, W
u
-
-
Man
agin
g D
irect
or (P
rince
Rep
.)B
o-M
ing,
Hou
-
- M
anag
ing
Dire
ctor
(Prin
ce R
ep.)
Li-L
ing
Zhen
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Ren
-Qin
Zhe
n
-
-
Dire
ctor
(Prin
ce R
ep.)
Yin
g-Zh
i Zhu
ang
-
- D
irect
or (P
rince
Rep
.)Zh
ao-M
ei W
u Ze
ng
-
-
Dire
ctor
(Prin
ce R
ep.)
Che
ng-D
a W
u
-
-
Dire
ctor
(Prin
ce R
ep.)
Jing
-Xin
g Zh
en
-
-
Dire
ctor
(Prin
ce R
ep.)
Bo-
Yi H
ou
-
-
Dire
ctor
(Prin
ce R
ep.)
Jun-
Che
ng G
uo
-
-
Dire
ctor
(Prin
ce R
ep.)
Cha
o-W
en H
uang
-
- D
irect
or (P
rince
Rep
.)Pi
ng-Z
hi W
u
-
-
Dire
ctor
(Prin
ce R
ep.)
Hon
g-Ya
n Zh
uang
-
-
228
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Supe
rvis
or (P
rince
Rep
.)Y
ing-
Nan
Zhu
ang
-
- Su
perv
isor
(Prin
ce R
ep.)
Da-
Xio
ng X
u
-
-
Chi
n-I-
Shin
Pl
ywoo
dCor
p.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.15
1,46
899
.65%
Cha
irman
(Prin
ce R
ep.)
Da-
Cha
ng D
ai
-
- D
irect
or (P
rince
Rep
.)D
e-Sh
eng
Zhen
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Tian
-Lon
g Lu
-
- Su
perv
isor
(Prin
ce R
ep.)
Bao
-Zhu
Guo
-
-
Prin
ce P
rope
rty
Man
agem
ent C
onsu
lting
C
o.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.17
,146
,580
100.
00%
Cha
irman
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)M
ing-
Hui
, Zhe
n
-
-
Dire
ctor
(Prin
ce R
ep.)
Li-L
ing
Zhen
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Bo-
Min
g, H
ou
-
-
Dire
ctor
(Prin
ce R
ep.)
Zhon
g-Ja
n, W
u
-
-
Supe
rvis
or(P
rince
Rep
.)M
ing-
Fan
Xie
-
-
Early
Suc
cess
In
vest
men
ts L
imite
d
Dire
ctor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.1,
554,
660
100.
00%
Dire
ctor
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)M
ing-
Fan
Xie
-
-
Sple
ndor
Ass
et
Man
agem
ent C
orp.
Dire
ctor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.50
,000
50.0
0%C
hairm
an (P
rince
Rep
.)Ju
n-X
ian
Wan
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)Sh
eng-
Wei
Mai
-
-
Dire
ctor
Chi
na M
etal
Pro
duct
s C
o. L
td.
50,0
0050
.00%
Dire
ctor
(Chi
na M
etal
Rep
.)M
ing-
Xia
n H
e
-
-
Dire
ctor
(Chi
na M
etal
Rep
.)H
uai-C
hen
Che
n
-
-
Supe
rvis
orJu
n-Li
n C
hai
-
-
Prin
ce A
sset
M
anag
emen
t Cor
p.
Dire
ctor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.2,
190
100.
00%
Dire
ctor
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
100
- D
irect
orR
en-Q
in Z
hen
100
- D
irect
orJi
ng-Y
ing
Wu
-
- D
irect
orW
an-J
un W
u10
-
Prince Housing & Development Corp . Annual Report 2012
229
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Supe
rvis
or (P
rince
Rep
.)Y
ing-
Nan
Zhu
ang
-
- Su
perv
isor
(Prin
ce R
ep.)
Da-
Xio
ng X
u
-
-
Chi
n-I-
Shin
Pl
ywoo
dCor
p.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.15
1,46
899
.65%
Cha
irman
(Prin
ce R
ep.)
Da-
Cha
ng D
ai
-
- D
irect
or (P
rince
Rep
.)D
e-Sh
eng
Zhen
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Tian
-Lon
g Lu
-
- Su
perv
isor
(Prin
ce R
ep.)
Bao
-Zhu
Guo
-
-
Prin
ce P
rope
rty
Man
agem
ent C
onsu
lting
C
o.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.17
,146
,580
100.
00%
Cha
irman
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)M
ing-
Hui
, Zhe
n
-
-
Dire
ctor
(Prin
ce R
ep.)
Li-L
ing
Zhen
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Bo-
Min
g, H
ou
-
-
Dire
ctor
(Prin
ce R
ep.)
Zhon
g-Ja
n, W
u
-
-
Supe
rvis
or(P
rince
Rep
.)M
ing-
Fan
Xie
-
-
Early
Suc
cess
In
vest
men
ts L
imite
d
Dire
ctor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.1,
554,
660
100.
00%
Dire
ctor
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)M
ing-
Fan
Xie
-
-
Sple
ndor
Ass
et
Man
agem
ent C
orp.
Dire
ctor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.50
,000
50.0
0%C
hairm
an (P
rince
Rep
.)Ju
n-X
ian
Wan
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
-
- D
irect
or (P
rince
Rep
.)Sh
eng-
Wei
Mai
-
-
Dire
ctor
Chi
na M
etal
Pro
duct
s C
o. L
td.
50,0
0050
.00%
Dire
ctor
(Chi
na M
etal
Rep
.)M
ing-
Xia
n H
e
-
-
Dire
ctor
(Chi
na M
etal
Rep
.)H
uai-C
hen
Che
n
-
-
Supe
rvis
orJu
n-Li
n C
hai
-
-
Prin
ce A
sset
M
anag
emen
t Cor
p.
Dire
ctor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.2,
190
100.
00%
Dire
ctor
(Prin
ce R
ep.)
Na-
Tian
, Zhu
ang
100
- D
irect
orR
en-Q
in Z
hen
100
- D
irect
orJi
ng-Y
ing
Wu
-
- D
irect
orW
an-J
un W
u10
-
Nam
e of
Cor
pora
tion
Title
Nam
e or
Rep
rese
ntat
ive
Shar
ehol
ding
Shar
es%
Prin
ce C
apita
l Inc
.D
irect
orPr
ince
Ta-
Che
n In
vest
men
ts C
orp.
110
0%D
irect
or (P
rince
Da-
Che
n R
ep.)
Da-
Xio
ng X
u
-
-
Prin
ce V
entu
res U
SA In
c.D
irect
orPr
ince
Cap
ital I
nc.
110
0%D
irect
or (P
rince
Cpa
ital R
ep.)
Da-
Xio
ng X
u
-
-
Ta-C
hen
Inte
rnat
iona
l (B
rune
i) C
ompa
nyD
irect
orTa
Che
n C
onst
ruct
ion
& E
ngin
eerin
g C
orp.
201,
000
100%
Dire
ctor
(Da-
Che
n R
ep.)
Ron
g-Ti
an C
hang
-
- Ta
Che
n C
onst
ruct
ion
&
Engi
neer
ing
(Vie
tnam
) C
orp.
Dire
ctor
Ta-C
hen
Inte
rnat
iona
l (B
rune
i) C
ompa
ny19
5,00
010
0%
Dire
ctor
(Da-
Che
n R
ep.)
Ron
g-Ti
an C
hang
-
-
Che
ng-S
hi In
vest
men
t H
oldi
ng C
o.
Dire
ctor
and
Sup
ervi
sor
Prin
ce H
ousi
ng &
Dev
elop
men
t Cor
p.12
0,80
7,23
010
0.00
%C
hairm
an (P
rince
Rep
.)N
a-Ti
an, Z
huan
g
-
-
Dire
ctor
(Prin
ce R
ep.)
Min
g-H
ui, Z
hen
-
- D
irect
or (P
rince
Rep
.)Li
-Lin
g Zh
eng
-
- D
irect
or (P
rince
Rep
.)B
o-M
ing,
Hou
-
- D
irect
or (P
rince
Rep
.)Zh
ong-
Jan,
Wu
-
- Su
perv
isor
(Prin
ce R
ep.)
Min
g-Fa
n X
ie
-
-
230
2. Affiliates Operations Overview
Company Name Capita; Total assets
Total liabilities Equity Operating
RevenueOperating
Income
Net Income EPS
(After tax)
(After tax)
Prince Housing & Development Corp. 11,944,764 40,181,074 23,231,247 16,949,827 7,892,497 1,559,811 1,785,930 1.54
Ta Chen Construction & Engineering Corp. 1,240,000 3,327,233 2,135,642 1,191,591 4,035,216 104,292 292,425 2.36
Prince Water and Electricity Corp. 30,700 195,291 139,266 56,025 289,396 3,194 22,144 7.21
Prince Apartment management and maintenance corp.
30,000 94,385 26,532 67,853 159,575 3,522 8,039 2.68
Prince Housing Investments Corp. 140,413 335,433 18 335,415 - (51) 18,094 42.276
Prince Bioechnology Co., Ltd
5,000 4,771 - 4,771 - (107) 104 0.21
Bio Sun Technology Co., Ltd. 46,880 24,066 1,355 22,711 18,237 956 (7,633) (1.63)
Prince Security Group 131,726 212,634 51,266 161,368 378,857 20,316 19,499 3.09
Prince Ta-Chen Investments Corp. 122,738 42,604 671 41,933 - - (388) (0.03)
Don-Fung Corp. 204,002 427,702 143 427,559 15,152 14,714 64,002 1.7Splendor Hotel 1,950,000 6,054,674 5,288,519 766,155 741,241 47,867 (16,972) (0.09)
Cheng-Shi Construction Corp 101,000 301,807 193,780 108,027 762,479 1,511 7,038 0.77
Prince Capital Inc. 26,727 3,269 629 2,640 - (45) (89) (89)Prince Ventures USA Inc. 20,511 3,826 557 3,269 - (45) (45) (45)
Time Square International Hotel 600,000 1,195,398 757,209 438,189 1,909,504 128,787 138,779 2.31
Chin-I-Shin Plywood Corp. 152,000 1,517,920 1,196,702 321,218 - (125) 8,198 53.93
Prince Property Management Consulting Co.
171,466 241,563 147 241416 9 (188) 2,034 0.36
Early Success Investments Limited
51,102 40,506 - 40,506 - - 19,919 12.81
Unit;NT $ thousands
Prince Housing & Development Corp . Annual Report 2012
231
Company Name Capita; Total assets
Total liabilities Equity Operating
RevenueOperating
Income
Net Income EPS
(After tax)
(After tax)
Splendor Asset Management Corp. 1,000 974 - 974 - - 2 0.02
Prince Asset Management Corp. 62,632 1,300 56 1,244 - (101) 18,779 7,511.53
Ta-Chen International (Brunei) Company
5,916 2,923 - 2,923 - - (2,877) -
Ta-Chen Construction & Engineering (Vietnam) Corp.
5,770 2,636 703 1,933 - - (2,908) -
Cheng-Shi Investment Holding Co.
1,208,072 1,355,644 - 1,355,644 - - - -
232
8.1.
2 A
ffilia
tes c
onso
lidat
ed fi
nanc
ial s
tate
men
ts
Plea
se re
fer t
o th
e pa
ge 1
30–
187.
8.1.
3 R
epor
ts o
n re
latio
ns b
etw
een :
Non
e 。8.
2 In
form
atio
n of
pri
vate
off
ered
secu
ritie
s :N
one
8.2
The
Sha
res i
n th
e C
ompa
ny H
eld
or D
ispo
sed
of b
y Su
bsid
iari
es in
the
Mos
t Rec
ent Y
ears
:
Nam
e of s
ubsid
iary
Stoc
k ca
pita
l co
llect
ed
Fund
so
urce
Shar
ehold
ing
ratio
of th
e co
mpan
y
Date
of
acqu
isitio
n or
di
spos
ition
Shar
es a
nd
amou
nt
acqu
ired
Shar
es a
nd
amou
nt
disp
osed
of
Inve
stm
ent
gain
(los
s)
Shar
ehold
ings
& am
ount
in the
most
recen
t ye
ar
Mor
tgag
e
Endo
rseme
nt am
ount
made
for t
he
subs
idiar
y
Amou
nt
loan
ed
to th
e su
bsid
iary
Ta Ch
en Co
nstruc
tion &
En
gineer
ing Co
rp. $1
,240,0
00(N
ote)
Opera
ting
Capit
al10
0%No
ne0
00
34,43
5,720
share
sNo
ne(N
ote)
$800
,000
(Note
)$5
00,00
0(N
ote)
00
$726
,594
Princ
e Apa
rtmen
t ma
nage
ment
and
maint
enan
ce co
rp.
$30,0
00(N
ote)
Opera
ting
Capit
al10
0%No
ne0
00
578,4
86sh
ares
None
(Note
)0
(Note
)0
(Note
)0
0$1
2,206
Not
e: u
ntil
Apr
. 30,
201
3
8.4
Oth
er N
eces
sary
Sup
plem
ent:
Non
e 。
Uni
t: N
T$ th
ousa
nds;
Sha
res;
%
Prince Housing & Development Corp . Annual Report 2012
233
PRINCE HOUSING & DEVELOPMENT CORP.
Na-Tian, Zhuang , Chairman