v2.4.1.9
SCHEDULE I
12 Months Ended
Dec. 31, 2014
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,  
    2013     2014        
ASSETS                
Current assets:                
Cash and cash equivalents   $ 688     $ 14,369  
Amounts due from subsidiaries     15,343       7,768  
Prepaid expenses and other current assets     54       137  
Total current assets     16,085       22,274  
                 
Investments in subsidiaries     398,324       334,201  
Investments in an equity method investee     14,987       24,020  
Acquired intangible assets, net     621       4,661  
TOTAL ASSETS     430,017       385,156  
                 
LIABILITIES AND EQUITY                
Current liabilities:                
 Short-term bank borrowing   $ -      $ 10,000   
Accrued expenses and other current liabilities   1,228     903  
Amounts due to subsidiaries     146,213       152,150  
Total liabilities     147,441       163,053  
Equity:                
Ordinary shares of par value $0.000001: 2,000,000,000 shares authorized 353,016,455 (2013: 411,474,516) shares issued and outstanding   $ 1     $ 1  
Additional paid-in capital     63,001       63,046  
 Treasury Stock     (44,119     (70,479
Accumulated other comprehensive income     40,734       36,937  
Retained earnings     222,959       192,598  
Total equity     282,576       222,103  
TOTAL LIABILITIES AND EQUITY   $ 430,017     $ 385,156  

 

STATEMENTS OF OPERATIONS

 

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

 

    Year ended December 31,  
    2012     2013     2014  
Operating expenses:                        
Research and development   $ (944 )   $ 1,017     $ 605  
General and administrative     (2,190 )     (1,626 )     (2,515 )
Selling and marketing     (48 )     86       43  
Total operating expenses     (3,182 )     (523 )     (1,867 )
Loss from operations     (3,182 )     (523 )     (1,867 )
Gain on disposal of subsidiaries     -       -       9,755  
Interest income     -       1       1  
(Loss) income before income taxes     (3,182 )     (522 )     7,889
Income tax expenses     (150 )     -       -  
Share of net income (loss) of subsidiaries, net of taxes     1,080       848       (38,266
Share of net income (loss) of an equity method investee     50       (202     16
Net (loss) income   $ (2,202 )   $ 124     $ (30,361

 

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

 

    Year ended December 31,  
    2012     2013     2014  
Net (loss) income     (2,202 )     124       (30,361
Other comprehensive income (loss) , net of tax:                        
Change in cumulative foreign currency translation adjustments     3,162       4,983       (3,797
Total comprehensive income (loss)   $ 960     $ 5,107     $ (34,158

 

STATEMENTS OF CHANGES IN EQUITY

 

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

 

                           
                         Accumulated                             
                            other     Accumulated        
    Ordinary shares     Additional       Treasury   comprehensive     retained        
    Number     Amount     paid-in capital       Stock   income     earnings     Total  
                                           
Balance at January 1, 2012     413,985,636     $ 1     $ 61,044      (40,444 $ 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  
Foreign currency translation adjustments     -       -       -        -     3,162       -       3,162  
Net loss     -       -       -        -     -       (2,202 )     (2,202 )
Balance at December 31, 2012     408,985,092     $ 1     $ 62,509     $  (42,307 $ 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  
Foreign currency translation adjustments     -       -       -        -     4,983       -       4,983  
Net income     -       -       -        -     -       124       124  
Balance at December 31, 2013     411,474,516     $ 1     $ 63,001     $  (44,119 ) $ 40,734     $ 222,959     $ 282,576  
Repurchase of ordinary shares     (70,774,015 )     -       -
     (28,902 )   -       -       (28,902 )
Share-based compensation     -       -       45        -     -       -       45  
Exercise of share-based awards     12,315,954       -       -        2,542     -       -       2,542  
Foreign currency translation adjustments     -       -       -        -     (3,797     -       (3,797
Net loss     -       -       -        -           (30,361 )     (30,361)  
Balance at December 31, 2014     353,016,455     $ 1     $ 63,046     $  (70,479 ) $ 36,937     $ 192,598     $ 222,103  

 

STATEMENTS OF CASH FLOWS  

 

(In thousands of U.S. dollars)

 

    Year ended December 31,  
    2012     2013     2014  
Operating activities:                        
Net (loss) income   $ (2,202 )   $ 124     $ (30,361
Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
Amortization of acquired intangible assets     -       33       1,021  
Share-based compensation     1,465       492       45  
Share of net (income) loss of subsidiaries     (1,080 )     (848 )     38,266
Share of net (income) loss of an equity method investee     (50 )     202       (16 )
Changes in operating assets and liabilities:                        
Prepaid expenses and other current assets     30       137       (84
Accrued expenses and other current liabilities     1,462       (1,148 )     (325 )
Amounts due to subsidiaries     3,440       7,418       5,937  
Cash provided by operating activities     3,065       6,410       14,483  
Investing activities:                        
 Dividend received from a subsidiary     -        -        22,060   
Investment in an equity method investee     -       (3,712 )     (9,016 )
(Increase) decrease in amounts due from subsidiaries     (1,829 )     (799 )     7,575
Purchase of intangible assets     -       (654 )     (5,061 )
Cash (used in) provided by investing activities     (1,829 )     (5,165 )     15,558
Financing activities:                        
Repurchase of ordinary shares     (4,152 )     (4,853 )     (28,902 )
Proceeds from exercise of stock options     2,289       3,041       2,542  
Raise of short-term bank loan     -        -        10,000   
Cash used in financing activities     (1,863 )     (1,812 )     (16,360 )
(Decrease) increase in cash and cash equivalents     (627 )     (567 )     13,681
                         
Cash and cash equivalents at the beginning of the year     1,882       1,255       688  
Cash and cash equivalents at the end of the year   $ 1,255     $ 688     $ 14,369  

 

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 requires 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, 2013 and 2014, $134,571 and $113,505 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, 2012, 2013 and 2014.

 

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.