1999 Annual Report - Delta Electronics

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G. Accounts payable DET DEJ Others H. Endorsements and guarantees December 31, 1999 1998 %of %of consolidated consolidated accounts accounts Amount payable Amount payable The amounts of endorsements and guarantees provided by the Company on behalf of related parties as of December 31, 1999 and 1998 are listed below: December 31, 1999 1998 DEJ DEU Vivitek Cyntec 6. DETAILS OF ASSETS MORTGAGED As of December 31, 1999 and 1998, the details of assets mortgaged by the Company and DIH were as follows: Book value Assets item Dec. 31, 1999 Dec. 31, 1998 Purpose of pledge Land Short-term and long - term loans Buildings and equipment Time deposits (shown in Short-term and long - term loans other current assets) Tax reassessment Total credit line secured by the above mortgaged assets was $189,309 and $294,528 as of December 31, 1999 and 1998, respectively. 7. COMMITMENTS AND CONTINGENT LIABILITIES In addition to those which have been disclosed in Notes 4(15), 5 and 6, the significant commitments and contingent liabilities of the Company as of December 31, 1999 and 1998 were as follows: 1) As of December 31, 1999 and 1998, the unpaid portion of the outstanding letters of credit was $71,550 and $139,638, respectively. 2) Except for those which have been disclosed in Note 5, as of December 31, 1999 and 1998, the amount of guarantees the Company provided to a certain company is listed below: December 31, 1999 1998 Delta Product Corp. (USA) 3) As of December 31, 1999, the outstanding contract for the minimum rent of the office, building and warehouse of the Company and the subsidiaries, DIH and DNI were $50,819. The details are as follows: 2000 After 2001 40
41 8. MAJOR CATASTROPHE No significant event has transpired which impacted the Company's and the consolidated subsidiary's operations. 9. SUBSEQUENT EVENTS 1) According to the resolution of the Company's Board of Directors on December 27, 1999, the Company will issue foreign currency convertible bonds amounting to US$200 million. Following the approval from the SFC, the Company issued convertible bonds in the amount of US$200 million (received $6,142,400) on February 15, 2000. These convertible bonds have 0% interest and cover a period of five years. 2) The Company invested in the new shares issued by Macronix International Co., Ltd. amounting to $92,684, representing 3,089,500 shares at NT$30 (dollars) per share. The transaction was ratified by the Company's Board of Directors on January 20, 2000. The Company's shareholding ratio changed from 3.04% to 2.99%. 3) The Company invested $202,500 in the new shares issued by Grand Advance Technology Ltd. (GAT), representing 8,100,000 shares at NT$25 (dollars) per share. The transaction was ratified by the Company's Board of Directors on February 19, 2000. As a result, the shareholding ratio in GAT decreased from 36% to 34.2%. 4) The subsidiary of the Company, DIH, issued 4,500,000 new shares at US$8.73 (dollars) per share to increase its working capital and invest in Delta Electronics (Thailand) Public Co., Ltd. (DET). According to the resolution of the Company's Board of Directors on January 24, 2000, based on its current ownership percentage, the Company purchased DIH's 4,230,000 shares for US$36,928 thousand. After DIH's additional investment in DET in January, 2000, the Company's direct and indirect shareholding ratio in DET is above 20%. Commencing January 2000, the Company will recognize investment income or loss in DET under equity method and amortize the difference between cost and net assets 5) On January 19, 2000, SFC approved the subsidiary's, DNI, application for public issuance of its stocks, and DNI accordingly, issued 30,000,000 new shares. On February 22, 2000, the Company invested $207,000, representing 20,700,000 shares. The Company's shareholding ratio in DNI decreased from 99.99% to 86.71%. 10. OTHERS 1) The 1998 consolidated financial statements have been restated to reflect the consolidated reporting entities of DIH. Certain accounts in the 1998 consolidated financial statements have been reclassified to conform with the presentation adopted for 1999. 2) Fair value of non-derivative assets and liabilities December 31, 1999 December 31, 1998 Book Value Fair Value Book Value Fair Value ASSETS Non-derivative assets with fair values equal to book values Long-term investments and prepayment for long-term investment LIABILITIES Non-derivative liabilities with fair values equal to book values Reserve for retirement plan The related assumptions on the fair value of non-derivative assets and liabilities are as follows: A. Non-derivative assets and liabilities with fair values equal to book values. a. The carrying amounts of short-term non-derivative assets and liabilities including cash and cash equivalents, notes receivable and accounts receivable, other receivables, mortgaged time deposits shown as other current assets,
Page 1 and 2: DELTA ELECTRONICS, INC. Annual Repo
Page 3 and 4: 3 1999 Annual Report Message from t
Page 5 and 6: 7 1999 Annual Report Major Products
Page 7 and 8: 11 1999 Annual Report Manufacturing
Page 10 and 11: 17 1999 Annual Report Financial Sta
Page 12 and 13: DELTA ELECTRONICS, INC. CONSOLIDATE
Page 14 and 15: DELTA ELECTRONICS, INC. CONSOLIDATE
Page 16 and 17: DELTA ELECTRONICS, INC. NOTES TO CO
Page 18 and 19: Inventories Inventories are stated
Page 20 and 21: transition is amortized equally ove
Page 22 and 23: December 31, 1999 December 31, 1998
Page 24 and 25: 32 5) Property, plant and equipment
Page 26 and 27: The initial conversion price, which
Page 28 and 29: 13) Legal reserve The R.O.C Company
Page 30 and 31: payment of the final tax assessment
Page 34 and 35: short-term loan, accounts payable,
Page 36 and 37: When the contracts mature, there wi
Page 38 and 39: 46 11. DISCLOSURE OF INFORMATION ON
Page 40 and 41: 48 12. Disclosure information of in
Page 42 and 43: 50 D. Marketable securities acquire
Page 44 and 45: 52 H. Receivable from related parti
Page 46 and 47: 13. SEGMENTAL FINANCIAL INFORMATION
Page 48 and 49: February 23, 2000 (00)R.D24P.4057 T
Page 50 and 51: DELTA ELECTRONICS, INC. STATEMENT O
Page 52 and 53: DELTA ELECTRONICS, INC. STATEMENT O

1999 Annual Report - Delta Electronics

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