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Mega ICBC
-40-
December 31, 2014
Investee Company
NT$
Percentage of
Shareholding
Cathay Investment & Development Corporation (Bahamas)
$
54,769
100.00
Mega Management Consulting Co., Ltd.
48,375
100.00
Cathay Investment & Warehousing Co., S.A.
60,438
100.00
Ramlett Finance Holdings Inc.
3,428
100.00
Yung Shing Industries Co.
658,571
99.56
China Products Trading Company
27,476
68.27
United Venture Corporation (Note1)
-
25.31
Mega 1 Venture Capital Co., Ltd.
73,449
25.00
IP Fund seven Limited (Note2)
131,814
25.00
An Feng Enterprise Co., Ltd.
11,911
25.00
Taiwan Finance Corporation
1,515,092
24.55
Everstrong Iron & Steel Foundry & Mfg. Corporation
42,155
22.22
China Real Estate Management Co., Ltd.
189,024
20.00
China Insurance (Thai) Public Company Limited
18,584
25.25
Total
$
2,835,086
Note1: Due to the investee having incurred accumulated deficit for an extended period of time, its Board of Directors resolved to dissolve the
company in 2013 and completed the registry for dissolution. Subsequently, liquidation was completed in 2015.
Note2: Due to the investee having incurred accumulated deficit for an extended period of time, its Board of Directors resolved dissolve the
company in 2015 and completed the registry for dissolution. However, liquidation procedures have not been completed and are expected
to be completed in 2016.
A.
The carrying amount of the Bank and its subsidiaries’ interests in all individually immaterial associates and the Bank and its subsidiaries’
share of the operating results are summarized as belows:
2015
2014
NT$
US$
NT$
Profit for the period
$
181,009 $
5,504 $
144,359
Other comprehensive income (loss)
(after income tax)
22,100
672
102,487
Total comprehensive income
$
203,109 $
6,716 $
246,846
B.
The shares of associates and joint ventures that the Bank and its subsidiaries own have no quoted market price available in an active
market. There is no significant restriction on fund transfer from the associates to their shareholders, i.e. distribution of cash dividends,
repayment of loans or money advanced.
C.
As of December 31, 2015 and 2014, investments accounted for under the equity method were not pledged as collateral.
D.
On May 27, 2015, the Bank sold all its held shares of China Insurance (Thai) Public Company Limited, which were accounted for as
investments accounted for under the equity method, recognising a gain on disposal of NT$3,346 thousand.
E.
The Bank’s investment in Mega Growth Venture Capital Co., Ltd. accounted for an ownership percentage of 11.81%. However, the
combined ownership percentage of the Bank, the Bank’s subsidiaries and the Bank's parent company was over 20%, thus the investment
is accounted for under the equity method.
(9)
Other financial assets – net
December 31, 2015
December 31, 2014
NT$
US$
NT$
Remittance purchased
$
11,047
336
34,079
Debt investments with no active market
-
-
4,000,000
Financial assets carried at cost
10,890,821
331,149
10,545,845
Nonaccrual loans transferred from overdue receivables
5,626
171
9,702
Subtotal
10,907,494
331,656
14,589,626
Less: Allowance for bad debts – Remittance purchased
(
113 (
4 ) (
74 )
Less: Allowance for bad debts – Nonaccrual loans
transferred from overdue receivables
(
2,879 (
88 ) (
8,230 )
Less: Accumulated impairment – Financial assets carried at
cost
(
919,428 ) (
27,956 ) (
930,759 )
Total
$
9,985,074 $
303,608 $
13,650,563
A.
As unlisted shares the Bank owns have no quoted market price available in an active market and cannot be measured reliably, they are
measured at cost.
B.
The Bank held ‘Class A Registered Convertible Preferred Stock’ issued by Taiwan High Speed Rail Corporation (“THSRC”). The total
investment was NT$4 billion and was recognised as ‘Debt investments with no active market’. In order to execute “Taiwan High Speed
Rail Corporation’s Financial Solution Plan”, THSRC has arranged to redeem outstanding preferred stock and has announced the
cancellation date of preferred stock to be on August 7, 2015. The Bank, as of the cancellation date, has recovered in its entirety the above-
mentioned investment amount.