TAIWAN LIPOSOME COMPANYAND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS JUNE 30, 2017 AND 2016 ------------------------------------------------------------------------------------------------------------------------------------ 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-lan financial statements shall prevail.
56
Embed
TAIWAN LIPOSOME COMPANYAND SUBSIDIARIES · 2017-11-20 · TAIWAN LIPOSOME COMPANYAND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2017AND 2016 (EXPRESSED IN
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
financial statements have been translated into English from the original Chinese version prepared and used inthe Republic of China. In the event of any discrepancy between the English version and the original Chineseversion or any differences in the interpretation of the two versions, the Chinese-lanfinancial statements shall prevail.
TAIWAN LIPOSOME COMPANY AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
JUNE 30, 2017, DECEMBER 31, 2016 AND JUNE 30, 2016(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
(THE CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2017 AND 2016 ARE UNAUDITED BUT REVIEWED)
~2~
June 30, 2017 December 31, 2016 June 30, 2016Assets Notes AMOUNT % AMOUNT % AMOUNT %
Increase in other non-current assets ( 170 ) ( 2,548 )
Net cash flows used in investing activities ( 20,078 ) ( 11,152 )
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of long-term borrowings - ( 2,760 )
Increase in lease payable 48,000 -
Decrease in lease payable ( 22,500 ) ( 24,000 )
Employee stock options exercised - 5,066
Cancellation of restricted stocks ( 22 ) ( 229 )
Treasury shares transferred to employees - 36,918
Net cash flows from financing activities 25,478 14,995
Effect due to changes in exchange rate ( 1,967 ) ( 93 )
Net decrease in cash and cash equivalents ( 379,556 ) ( 249,722 )
Cash and cash equivalents at beginning of period 1,798,800 2,384,527
Cash and cash equivalents at end of period $ 1,419,244 $ 2,134,805
~8~
TAIWAN LIPOSOME COMPANY AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2017 AND 2016
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)
(UNAUDITED BUT REVIEWED)
1. HISTORY AND ORGANIZATION
the provisions of the Company Act of the Republic of China (R.O.C.) and was listed on the GreTai
Securities Market since December 21, 2012. The Company and its subsidiaries (collectively referred
biopharmaceutical companies focused on the research, development and
commercialization of innovative pharmaceutical products based on its proprietary drug delivery
technologies.
2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORIZATION
These consolidated financial statements were authorized for issuance by the Board of Directors on
August 10, 2017.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting
New standards, interpretations and amendments endorsed by FSC effective from 2017 are as
follows:
New Standards, Interpretations and Amendments
Effective date by
International Accounting
Standards Board
Investment entities: applying the consolidation exception (amendments to
IFRS 10, IFRS 12 and IAS 28)
January 1, 2016
Accounting for acquisition of interests in joint operations
(amendments to IFRS 11)
January 1, 2016
IFRS 14, January 1, 2016Disclosure initiative (amendments to IAS 1) January 1, 2016Clarification of acceptable methods of depreciation and amortisation
(amendments to IAS 16 and IAS 38)
January 1, 2016
Agriculture: bearer plants (amendments to IAS 16 and IAS 41) January 1, 2016Defined benefit plans: employee contributions (amendments to IAS 19R) July 1, 2014
Equity method in separate financial statements (amendments to IAS 27) January 1, 2016
~9~
T
and financial performance
(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by
the Group
New standards, interpretations and amendments endorsed by the FSC effective from 2018 are as
follows:
New Standards, Interpretations and Amendments
Effective date by
International Accounting
Standards Board
Recoverable amount disclosures for non-financial assets (amendments to
IAS 36)
January 1, 2014
Novation of derivatives and continuation of hedge accounting
(amendments to IAS 39)
January 1, 2014
IFRIC 21, January 1, 2014Improvements to IFRSs 2010-2012 July 1, 2014Improvements to IFRSs 2011-2013 July 1, 2014Improvements to IFRSs 2012-2014 January 1, 2016
New Standards, Interpretations and Amendments
Effective date by
International Accounting
Standards Board
Classification and measurement of share-based payment transactions
(amendments to IFRS 2)
January 1, 2018
Applying IFRS 9, 4,
(amendments to IFRS 4)
January 1, 2018
IFRS 9, January 1, 2018
IFRS 15, January 1, 2018
Clarifications to IFRS 15,
(amendments to IFRS 15)
January 1, 2018
Disclosure initiative (amendments to IAS 7) January 1, 2017
Recognition of deferred tax assets for unrealised losses (amendments to July 1, 2017
IAS 12)
Transfers of investment property (amendments to IAS 40) January 1, 2018
IFRIC 22, January 1, 2018
Annual improvements to IFRSs 2014-2016 cycle-Amendments to
IFRS 1, -time adoption of International Financial Reporting
January 1, 2018
Annual improvements to IFRSs 2014-2016 cycle-Amendments to
IFRS 12,
January 1, 2017
Annual improvements to IFRSs 2014-2016 cycle-Amendments to
IFRS 28,
July 1, 2018
~10~
Except for the following, the above standards and interpretations have no significant impact to the
financial performance The
quantitative impact will be disclosed when the assessment is complete.
A.
(a) Cl
contractual cash flow characteristics of the financial assets, which would be classified as
financial asset at fair value through profit or loss, financial asset measured at fair value
through other comprehensive income or financial asset measured at amortised cost. Equity
instruments would be classified as financial asset at fair value through profit or loss, unless
an entity makes an irrevocable election at inception to present in other comprehensive
income subsequent changes in the fair value of an investment in an equity instrument that
is not held for trading.
(b)
approach. An entity assesses at each balance sheet date whether there has been a significant
increase in credit risk on that instrument since initial recognition to recognise 12-month
expected credit losses or lifetime expected credit losses (interest revenue would be
calculated on the gross carrying amount of the asset before impairment losses occurred);
or if the instrument that has objective evidence of impairment, interest revenue after the
impairment would be calculated on the book value of net carrying amount (i.e. net of credit
allowance). The Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses for trade receivables that do not contain a significant
financing component.
B. IFRS 15, R
when a customer obtains control of promised goods or services. A customer obtains control of
goods or services when a customer has the ability to direct the use of, and obtain substantially
all of the remaining benefits from, the asset.
The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. An entity recognises
revenue in accordance with that core principle by applying the following steps:
Step 1: Identify contracts with customer.
Step 2: Identify separate performance obligations in the contract(s).
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price.
Step 5: Recognise revenue when the performance obligation is satisfied.
~11~
Further, IFRS 15 includes a set of comprehensive disclosure requirements that requires an
entity to disclose sufficient information to enable users of financial statements to understand
the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts
with customers.
Under IFRS 15, depending on the nature of licences, they are either (1) a promise to provide
point
in time when the licence is granted.
property, and revenue is recognised based on the performance obligation's progress towards
completion:
(a) the contract requires, or the customer reasonably expects, that the entity will undertake
activities that significantly affect the intellectual property to which the customer has rights;
(b) the rights granted by the licence directly expose the customer to any positive or negative
(c) those activities do not result in the transfer of a good or service to the customer as those
activities occur.
If licences cannot meet all criteria listed above, the entity provides a right to use the entity
intellectual property. Revenue shall be recognised at the point in time at which the licence is
granted to the customer.
C. Clarifications to IFRS 15 Revenu
The amendments clarify how to identify a performance obligation (the promise to transfer a
good or a service to a customer) in a contract; determine whether a company is a principal (the
provider of a good or service) or an agent (responsible for arranging for the good or service to
be provided); and determine whether the revenue from granting a licence should be recognised
at a point in time or over time. In addition to the clarifications, the amendments include two
additional reliefs to reduce cost and complexity for a company when it first applies the new
Standard.
D.
This amendment requires that an entity shall provide more disclosures related to changes in
liabilities arising from financing activities, including both changes arising from cash flows and
non-cash changes.
~12~
(3) IFRSs issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as
endorsed by the FSC effective from 2017 are as follows:
Except for the following, the above standards and interpretations have no significant impact to the
financial performance The
quantitative impact will be disclosed when the assessment is complete.
A. IFRS 16,
Leases and related interpretations and SICs. The standard
requires lessees to recognise a right-of-use asset and a lease liability (except for those leases with
terms of 12 months or less and leases of low-value assets). The accounting stays the same for
lessors, which is to classify their leases as either finance leases or operating leases and account for
those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided
by lessors.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Except for the compliance statement, basis of preparation, basis of consolidation and additional
descriptions that are set out below, the rest of the principal accounting polices applied in the preparation
of these consolidated financial statements are the same as those disclosed in Note 4 to the consolidated
financial statements as of and for the year ended December 31, 2016. These policies have been
consistently applied to all the periods presented, unless otherwise stated.
(1) Compliance statement
A. The consolidated financial statements of the Group have been prepared in accordance with the
and IAS 34,
B. The consolidated financial statements as of and for the six-month period ended June 30, 2017
should be read together with the consolidated financial statements as of and for the year ended
December 31, 2016
(2) Basis of preparation
A. Except for defined benefit liabilities recognised based on the net amount of pension fund assets
New Standards, Interpretations and Amendments
Effective date by
International Accounting
Standards Board
Sale or contribution of assets between an investor and its associate or
joint venture (amendments to IFRS 10 and IAS 28)
To be determined by
International Accounting
Standards BoardIFRS 16, January 1, 2019IFRS 17, 'Insurance contracts' January 1, 2021IFRIC 23, January 1, 2019
~13~
less present value of defined benefit obligation, these consolidated financial statements have been
prepared under the historical cost convention.
B. The preparation of financial statements in conformity with International Financial Reporting
Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as
requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process
ement or
complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
Basis for preparation of consolidated financial statements are the same as those disclosed to the
consolidated financial statements as of and for the year ended December 31, 2016.
B. Subsidiaries included in the consolidated financial statements:
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
Name of Name of Main Business June 30, December 31, June 30,
Investor Subsidiary Activities 2017 2016 2016
Taiwan TLC Research on new anti-cancer 100 100 100
Liposome Biopharmaceuticals, drugs and biotechnology
Company Inc. services
Taiwan TLC Technical authorization 100 100 100
Liposome Biopharmaceuticals and product development
Company B.V.
Taiwan TLC Biotechnology services and 100 100 100
Liposome Biopharmaceuticals, reinvestment
Company (H.K.) Limited
Taiwan TLC Technical authorization 100 100 100
Liposome Biopharmaceuticals, and product development
Company Pty Ltd.
Taiwan TLC Technical authorization 100 100 100
Liposome Biopharmaceuticals, and product development
Company Japan Co., Ltd.
TLC TLC Consulting and technical 100 100 100
Biopharmaceuticals, Biopharmaceuticals, service of medication
(H.K.) Limited (Shanghai) Limited
Ownership (%)
~14~
F. Subsidiaries that have non-controlling interests that are material to the Group: None.
(4) Employee benefits
A. Short-term employee benefits
Short-term employee benefits are measured at the undiscounted amount of the benefits expected
to be paid in respect of service rendered by employees in a period and should be recognised as
expenses in that period when the employees render service.
B. Pensions
(a) Defined contribution plans
For defined contribution plans, the contributions are recognised as pension expenses when
they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent
of a cash refund or a reduction in the future payments.
(b) Defined benefit plans
i. Net obligation under a defined benefit plan is defined as the present value of an amount of
pension benefits that employees will receive on retirement for their services with the Group
in current period or prior periods. The liability recognised in the balance sheet in respect of
defined benefit pension plans is the present value of the defined benefit obligation at the
balance sheet date less the fair value of plan assets.The net defined benefit obligation is
calculated annually by independent actuaries using the projected unit credit method. The rate
used to discount is determined by using interest rates of government bonds (at the balance
sheet date) of a currency and term consistent with the currency and term of the employment
benefit obligations.
ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive
income in the period in which they arise and are recorded as retained earnings.
iii. Pension cost for the interim period is calculated on a year-to-date basis by using the pension
cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted
for significant market fluctuations since that time and for significant curtailments,
settlements, or other significant one-off events. Also, the related information is disclosed
accordingly.
(5) Income tax
A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or
loss, except to the extent that it relates to items recognised in other comprehensive income or
items recognised directly in equity, in which cases the tax is recognised in other comprehensive
income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively
enacted at the balance sheet date in the countries where the Company and its subsidiaries operate
and generate taxable income. Management periodically evaluates positions taken in tax returns
with respect to situations in accordance with applicable tax regulations. It establishes provisions
~15~
where appropriate based on the amounts expected to be paid to the tax authorities. 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.
C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the
consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at the
time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is
provided on temporary differences arising on investments in subsidiaries, except where the timing
of the reversal of the temporary difference is controlled by the Group and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax is determined using
tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and
are expected to apply when the related deferred tax asset is realised or the deferred tax liability is
settled.
D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised. At each balance sheet
date, unrecognised and recognised deferred tax assets are reassessed.
E. Current tax assets and liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets
and liabilities are offset on the balance sheet when the entity has the legally enforceable right to
offset current tax assets against current tax liabilities and they are levied by the same taxation
authority on either the same entity or different entities that intend to settle on a net basis or realise
the asset and settle the liability simultaneously.
F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from
research and is
possible that future taxable profit will be available against which the unused tax credits can be
utilised.
G. The interim period income tax expense is recognised based on the estimated average annual
effective income tax rate expected for the full financial year applied to the pretax income of the
interim period, and the related information is disclosed accordingly.
5. CRITICAL ACCOUNTING ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY
No significant changes during the period. Please refer to Note 5 in the consolidated financial statements
for the year ended December 31, 2016.
~16~
6. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
A. The Group transacts with a variety of financial institutions with high credit quality to disperse
credit risk, so it expects that the probability of counterparty default is remote.
B. Details of the Group s bank deposits pledged to others as collateral are provided in Note 8, and
these bank deposits are not accounted for as cash and cash equivalents.
(2) Accounts receivable
A. The G accounts receivable that were neither past due nor impaired were fully performing
in line with the credit standards prescribed based on counterparties industrial characteristics, scale
of business and profitability. As of June 30, 2017, December 31, 2016 and June 30, 2016, the
Group s accounts receivable that were neither past due nor impaired amounted to $7,854, $7,912
and $6,948, respectively. The Group has lower significant concentrations of credit risk and has
policies in place to ensure that customers have an appropriate credit history when signing the
contract.
B. The ageing analysis of accounts receivable that were past due but not impaired is as follows:
The above ageing analysis was based on past due date.
C. Movement analysis of accounts receivable that were impaired is as follows:
(a) As of June 30, 2017, December 31, 2016 and June 30, 2016
that were individually determined to be impaired amounted to $9,067, $9,067 and $0,
respectively.
June 30, 2017 December 31, 2016 June 30, 2016
Cash on hand 86$ 98$ 64$
Checking and demand deposits 694,758 688,702 737,913
Time deposits 724,400 1,110,000 1,396,828
1,419,244$ 1,798,800$ 2,134,805$
June 30, 2017 December 31, 2016 June 30, 2016
Accounts receivable 25,986$ 26,053$ 25,080$
Less: allowance for bad debts 9,067)( 9,067)( -
16,919$ 16,986$ 25,080$
June 30, 2017 December 31, 2016 June 30, 2016
Up to 30 days -$ -$ -$31 to 90 days - - -91 to 180 days - - -Over 181 days 9,065 9,065 18,132
9,065$ 9,065$ 18,132$
~17~
(b)
In 2016: None.
D. The Group does not hold any collateral as security.
(3) Prepayments
Individual provision Group provision Total
At January 1 9,067$ -$ 9,067$
Provision for impairment - - -
At June 30 9,067$ -$ 9,067$
2017
June 30, 2017 December 31, 2016 June 30, 2016
Net input VAT 32,402$ 30,733$ 26,685$Prepaid expense for medicines research 4,740 1,959 751Prepaid repair expense 2,782 5,003 4,105Prepaid banking charges 2,027 1,350 700Prepaid expense for medicines registration 1,664 - -Prepaid rent 1,003 417 1,064Prepaid insurance 866 964 -Prepaid exhibition expenses 220 - -Prepaid service expenses 26 30 10
Others 4,257 699 1,823
49,987$ 41,155$ 35,138$
~18~
(4) Property, plant and equipment
A. The details of property, plant and equipment are as follows:
Testing Office Leasehold Leasehold
Land Buildings equipment equipment assets improvements Total
credit quality of the customers, taking into account their financial position, past
experience and other factors. Credit risk arises from cash and deposits with banks and
financial institutions, as well as credit exposures to corporate pharmaceutical factories,
including outstanding receivables. For banks and financial institutions, only rated parties
with a good rating are accepted.
ii. The Group s deposits with banks and credit quality of accounts receivable are provided
in Notes 6(1) and 6(2), respectively.
(c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated
by Group treasury. Group treasury monitors rolling forecasts of the Group s liquidity
requirements to ensure it has sufficient cash to meet operational needs.
ii. The table below analyses the G non-derivative financial liabilities based on the
remaining period at the balance sheet date to the contractual maturity date. The amounts
disclosed in the table are the contractual undiscounted cash flows.
Between 1 Between 2 Between 3 Over
1 year and 2 years and 3 years and 5 years 5 years
Short-term borrowings 46,471$ -$ -$ -$ -$
Notes payable 500 - - - -
Other payables 72,126 - - - -
Finance lease liabilities
(including current portion) 48,851 28,143 - - -
Long-term borrowings
(including current portion) 4,732 6,134 6,553 12,829 51,271
June 30, 2017
Between 1 Between 2 Between 3 Over
1 year and 2 years and 3 years and 5 years 5 years
Short-term borrowings 46,471$ -$ -$ -$ -$
Notes payable 206 - - - -
Other payables 113,589 - - - -
Finance lease liabilities
(including current portion) 27,086 24,198 - - -
Long-term borrowings
(including current portion) 3,142 4,903 5,259 13,051 57,526
December 31, 2016
~51~
(3) Fair value estimation
The Group had no financial instruments measured at fair value, by valuation method as of June 30,
2017, December 31, 2016 and June 30, 2016.
13. SUPPLEMENTARY DISCLOSURES
(1) Significant transactions information
A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates
and joint ventures): None.
D. Aggregate purchases or sales of the same securities reaching NT$300 million or 20% of paid-in
capital or more: None.
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-
in capital or more: None.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more:
None.
I. Derivative financial instruments undertaken during the six-month period ended June 30, 2017:
None.
J. Significant inter-company transactions during the six-month period ended June 30, 2017: Please
refer to table 1.
(2) Information on investees
Names, locations and other information of investee companies (not including investees in Mainland
China): Please refer to table 2.
(3) Information on investments in Mainland China
A. Basic information: Please refer to table 3.
B. Significant transactions conducted with investees in Mainland China directly or indirectly
through other companies in the third areas: None.
Between 1 Between 2 Between 3 Over
1 year and 2 years and 3 years and 5 years 5 years
Short-term borrowings 46,486$ -$ -$ -$ -$
Other payables 51,102 - - - -
Finance lease liabilities
(including current portion) 28,147 - - - -
Long-term borrowings
(including current portion) 1,409 3,175 4,862 14,252 61,072
June 30, 2016
~52~
14. SEGMENT INFORMATION
(1) General information
The Group's major business is research and development for new medicine and operates business
only in a single industry. The Chief Operating Decision-Maker, who allocates resources and assesses
performance of the Group as a whole, has identified that the Group has only one reportable operating
segment.
(2) Measurement of segment information
The Group has only one reportable operating segment. Therefore, the reportable segment
information is the same as the financial statements.
(3) Reconciliation for segment income (loss)
The segment income (loss) reported to the Chief Operating Decision-Maker is measured in a manner
consistent with that in the statement of comprehensive income. There is no reconciliation because
the report provided to the Chief Operating Decision-Maker for business decisions has no difference
to the segment statement of comprehensive income.
General ledger account
Amount
(Note 5) Transaction terms
Percentage of consolidated total
operating
revenues or total assets (Note 3)
1 TLC Biopharmaceuticals, Inc. Taiwan Liposome Company 2 Operating revenue 40,810$ (Note 4) 170.99%2 TLC Biopharmaceuticals Japan Co., Ltd. Taiwan Liposome Company 2 Operating revenue 1,704 (Note 4) 7.14%3 TLC Biopharmaceuticals, (Shanghai) Taiwan Liposome Company 2 Operating revenue 2,189 (Note 4) 9.17%4 TLC Biopharmaceuticals Pty Ltd. Taiwan Liposome Company 2 Operating revenue 9,655 (Note 4) 40.45%1 TLC Biopharmaceuticals, Inc. Taiwan Liposome Company 2 Accounts receivable 7,634 (Note 4) 0.44%4 TLC Biopharmaceuticals Pty Ltd. Taiwan Liposome Company 2 Accounts receivable 9,130 (Note 4) 0.53%
Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) 0 .(2) 1 .
(1) Parent company to subsidiary.(2) Subsidiary to parent company.(3) Subsidiary to subsidiary.
Note 4: Transaction items follow the agreement.Note 5: Only related party transactions in excess of NT$1,000,000 are disclosed.Note 6: The above transactions between the parent company and its subsidiaries had been eliminated when preparing consolidated financial statements. The disclosure information is for reference only.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories:
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated
total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Number
(Note 1) Company name Counterparty
Relationship
(Note 2)
Transaction
Taiwan Liposome Company and SubsidiariesSignificant inter-company transactionsSix-month period ended June 30, 2017
Note: All the transactions with subsidiaries disclosed below had been eliminated when preparing consolidated financial statements.
Income of the
investee for the
six-month period
ended June 30,
2017
Investment income
(loss) recognised by the
Company for the six-
month period ended
June 30, 2017 FootnoteInvestor Investee Location Main business activities
Initial investment amount Shares held as of June 30, 2017
Names, locations and other information of investee companies (not including investee in Mainland China)Six-month period ended June 30, 2017
Table 2 Expressed in thousands of NTD
Taiwan Liposome Company and Subsidiaries
~54~
Remitted to
Mainland China
Remitted back to
Taiwan
TLC
Biopharmaceuticals,
(Shanghai) Limited
Consulting of
medical related
technology and
technological
service
2,243$ Reinvestment in
Mainland China
through third region
company (TLC
Biopharmaceuticals,
(H.K.) Limited)
2,250$ -$ -$ 2,250$ 42$ 100 42$ 2,668$ -$
Note 1: Investment methods are classified into the following three categories:
(1) Directly invest in a company in Mainland China.(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China(3) Others
Note 2: -month period ended June 30, 2017 :(1) It should be indicated if the investee was still in the incorporation arrangements and has not yet generated any profit during this period.(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
A. The financial statements were audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.B. The financial statements were audited and attested by R.O.C. .C. Others (The financial statements were reviewed by R.O.C. .).
Company name
Accumulated
amount of
remittance
from Taiwan
to Mainland
China as of
June 30, 2017
Investment
amount
approved by
the Investment
Commission of
the Ministry of
Economic
Affairs
(MOEA)(Note)
Ceiling on
investments in
Mainland China
imposed by the
Investment
Commision of MOEA
Taiwan Liposome
Company
$ 2,250 $ 2,250 $ 866,456
(Note) The investment amount was approved by Jing-Shen-II-Zi No. 10300223010 of Ministry of Economic Affairs, R.O.C.
Investee in
Mainland China
Book value
of
investments
in Mainland
China as of
June 30,
2017
Accumulated
amount of
investment
income remitted
back to Taiwan
as of June 30,
2017 Footnote
Main business
activities Paid-in capital
Investment method
(Note 1)
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of January 1,
2017
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of June 30,
2017
Ownership
held by the
Company
(direct or
indirect)
Investment income
recognised by the
Company for the
six-month period
ended June 30,
2017 (Note 2(2)C)
Income of
investee for the
six months
ended June 30,
2017
Amount remitted from Taiwan to Mainland
China/Amount remitted back to Taiwan for
the six-month period ended June 30, 2017
Taiwan Liposome Company and SubsidiariesInformation on investments in Mainland China - Basic information
Six-month period ended June 30, 2017Expressed in thousands of NTD