v2.4.0.8
SCHEDULE I
12 Months Ended
Dec. 31, 2013
NOTES TO SCHEDULE 1 [Abstract]  
SCHEDULE 1
 

 

SCHEDULE 1

BALANCE SHEETS

 

(In thousands of U.S. dollars, except share and per share data)

 

    At December 31,  
    2012     2013  
ASSETS                
Current assets:                
Cash and cash equivalents   $ 1,255     $ 688  
Amounts due from subsidiaries     14,544       15,343  
Prepaid expenses and other current assets     191       54  
Total current assets     15,990       16,085  
                 
Investments in subsidiaries     392,493       398,324  
Investments in an equity method investee     11,478       14,987  
Acquired intangible assets, net             621  
TOTAL ASSETS     419,961       430,017  
                 
LIABILITIES AND EQUITY                
Current liabilities:                
Accrued expenses and other current liabilities   $ 1,902     $ 1,228  
Amounts due to subsidiaries     138,795       146,213  
Total current liabilities     140,697       147,441  
Payable for acquisition of intangible assets     475       -  
Total liabilities     141,172       147,441  
Equity:                
Ordinary shares of par value $0.000001: 2,000,000,000 shares authorized 411,474,516 (2012: 408,985,092) shares issued and outstanding   $ 1     $ 1  
Additional paid-in capital     20,202       18,882  
Accumulated other comprehensive income     35,751       40,734  
Retained earnings     222,835       222,959  
Total equity     278,789       282,576  
TOTAL LIABILITIES AND EQUITY   $ 419,961     $ 430,017  

 

STATEMENTS OF OPERATIONS

 

(In thousands of U.S. dollars, except share and per share data)

 

    Year ended December 31,  
    2011     2012     2013  
Operating expenses:                        
Research and development   $ (1,339 )   $ (944 )   $ 1,017  
General and administrative     (2,269 )     (2,190 )     (1,626 )
Selling and marketing     (51 )     (48 )     86  
Total operating expenses     (3,659 )     (3,182 )     (523 )
Loss from operations     (3,659 )     (3,182 )     (523 )
Interest income     -       -       1  
Loss before income taxes     (3,659 )     (3,182 )     (522 )
Income tax expenses     (150 )     (150 )     -  
Share of net income of subsidiaries, net of taxes     6,786       1,080       848  
Share of net income (loss) of an equity method investee     28       50       (202 )
Net income (loss)   $ 3,005     $ (2,202 )   $ 124  

 

STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of U.S. dollars, except share and per share data)

 

    Year ended December 31,  
    2011     2012     2013  
Net income (loss)     3,005       (2,202 )     124  
Other comprehensive income , net of tax:                        
Change in cumulative foreign currency translation adjustments     8,169       3,162       4,983  
Total comprehensive income   $ 11,174     $ 960     $ 5,107  

 

STATEMENTS OF CHANGES IN EQUITY

 

(In thousands of U.S. dollars, except share and per share data)

 

                      Accumulated              
                      other     Accumulated        
    Ordinary shares     Additional     comprehensive     retained        
    Number     Amount     paid-in capital     income     earnings     Total  
                                     
Balance at January 1, 2011     427,705,308     $ 1     $ 24,252     $ 24,420     $ 222,032     $ 270,705  
                                                 
Repurchase of ordinary shares     (16,594,848 )     -       (6,251 )     -       -       (6,251 )
                                                 
Share-based compensation     -       -       1,928       -       -       1,928  
                                                 
Exercise of share-based awards     2,875,176       -       671       -       -       671  
                                                 
Share of subsidiaries' reserve     -       -       -       8,169       -       8,169  
                                                 
Net income     -       -       -       -       3,005       3,005  
                                                 
Balance at December 31, 2011     413,985,636     $ 1     $ 20,600     $ 32,589     $ 225,037     $ 278,227  
                                                 
Repurchase of ordinary shares     (14,812,056 )     -       (4,166 )     -       -       (4,166 )
                                                 
Share-based compensation     -       -       1,465       -       -       1,465  
                                                 
Exercise of share-based awards     9,811,512       -       2,303       -       -       2,303  
                                                 
Share of subsidiaries' reserve     -       -       -       3,162       -       3,162  
                                                 
Net loss     -       -       -       -       (2,202 )     (2,202 )
                                                 
Balance at December 31, 2012     408,985,092     $ 1     $ 20,202     $ 35,751     $ 222,835     $ 278,789  
                                                 
Repurchase of ordinary shares     (11,772,294 )     -       (4,853 )     -       -       (4,853 )
                                                 
Share-based compensation     -       -       492       -       -       492  
                                                 
Exercise of share-based awards     14,261,718       -       3,041       -       -       3,041  
                                                 
Share of subsidiaries' reserve     -       -       -       4,983       -       4,983  
                                                 
Net income     -       -       -       -       124       124  
                                                 
Balance at December 31, 2013     411,474,516     $ 1     $ 18,882     $ 40,734     $ 222,959     $ 282,576  

 

STATEMENTS OF CASH FLOWS  

 

(In thousands of U.S. dollars)

 

    Year ended December 31,  
    2011     2012     2013  
Operating activities:                        
Net income (loss)   $ 3,005     $ (2,202 )   $ 124  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                        
Amortization of acquired intangible assets     -       -       33  
Share-based compensation     1,928       1,465       492  
Share of net income of subsidiaries     (6,786 )     (1,080 )     (848 )
Share of net (income) loss of an equity method investee     (28 )     (50 )     202  
Changes in operating assets and liabilities:                        
Prepaid expenses and other current assets     (186 )     30       137  
Accrued expenses and other current liabilities     115       1,462       (1,148 )
Amounts due to subsidiaries     15,489       3,440       7,418  
Cash provided by operating activities     13,537       3,065       6,410  
Investing activities:                        
Investment in an equity method investee     (7,076 )     -       (3,712 )
Increase in amounts due from subsidiaries     (67 )     (1,829 )     (799 )
Capital contribution in subsidiaries     -       -       (654 )
Cash used in investing activities     (7,143 )     (1,829 )     (5,165 )
Financing activities:                        
Repurchase of ordinary shares     (6,251 )     (4,152 )     (4,853 )
Proceeds from exercise of stock options     671       2,289       3,041  
Cash used in financing activities     (5,580 )     (1,863 )     (1,812 )
Increase (decrease) in cash and cash equivalents     814       (627 )     (567 )
                         
Cash and cash equivalents at the beginning of the year     1,068       1,882       1,255  
Cash and cash equivalents at the end of the year   $ 1,882     $ 1,255     $ 688  

 

NOTES TO SCHEDULE 1

 

1 Schedule 1

 

Schedule 1 has been provided pursuant to the requirements of Rule 12-04(a) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to financial position, changes in financial position and results and operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries together exceed 25 percent of consolidated net assets as of end of the most recently completed fiscal year.

 

As of December 31, 2012 and 2013, $124,141 and $134,571 of the restricted capital and reserves are not available for distribution, and as such, the condensed financial information of the Company has been presented for the years ended December 31, 2011, 2012 and 2013.

 

2 Basis of preparation

 

The condensed financial information has been prepared using the same accounting policies as set out in the Group's consolidated financial statements except that the parent company has used equity method to account for its subsidiaries.