| 13. | Investment in associates |
Details of investment in associates are as follows:
| Country of incorporation and business |
Measurement method |
December 31, 2016 | December 31, 2017 | |||||||||||||||||||||
|
Investee company |
Carrying amount |
Ownership | Carrying amount |
Ownership | ||||||||||||||||||||
| NT$000 | % | NT$000 | US$000 | % | ||||||||||||||||||||
|
JMC ELECTRONICS CO., LTD. (“JMC”) |
Kaohsiung Taiwan |
Equity method |
369,329 | 21.22 | 373,276 | 12,593 | 19.10 | |||||||||||||||||
|
ChipMOS Shanghai |
Shanghai PRC |
Equity method |
— | — | 3,060,056 | 103,241 | 45.02 | |||||||||||||||||
In January 2017, the Company did not participate in the capital increase of JMC, which reduced the Company’s shareholding from 21.22% to 19.10%. Given that the Company still retains significant influence by holding two seats in JMC’s Board of Directors, JMC was still recognized as “Investment in associates”. As a result of the change in shareholding, the Company recognized disposal gain from long-term investment amounted to NT$16,929 thousand (US$571 thousand) for the year ended December 31, 2017.
On November 30, 2016, the Company’s Board of Directors adopted a resolution to authorize its subsidiary, ChipMOS BVI, to dispose 54.98% of ChipMOS Shanghai’s equity. The equity transfer was completed in March 2017, and subsequently, due to the loss of control but retention of significant influence, ChipMOS Shanghai was excluded from the consolidated financial statements and was accounted for as an investment in associate. Information is provided in Note 18.
In June 2017, ChipMOS BVI participated in ChipMOS Shanghai’s increase of paid-in capital based on its shareholding and paid in total of NT$1,373,486 thousand (US$46,339 thousand).
For the years ended December 31, 2016 and 2017, the Company recognized its share of profit of investments in associates amounted to NT$28,924 thousand and share of loss of NT$179,491 thousand (US$6,056 thousand), respectively.
The tables below provide summarized financial information for the investment in associates that are material to the Group.
Statements of financial position
| JMC | ||||||||||||
| December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||||||||||
| NT$000 | NT$000 | US$000 | ||||||||||
|
Current assets |
904,571 | 833,914 | 28,134 | |||||||||
|
Non-current assets |
876,314 | 1,161,620 | 39,191 | |||||||||
|
Current liabilities |
(258,513 | ) | (284,580 | ) | (9,601 | ) | ||||||
|
Non-current liabilities |
(2,491 | ) | (1,756 | ) | (59 | ) | ||||||
|
|
|
|
|
|
|
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|
Total net assets |
1,519,881 | 1,709,198 | 57,665 | |||||||||
|
|
|
|
|
|
|
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|
Group’s share |
322,509 | 326,456 | 11,014 | |||||||||
|
Goodwill |
46,820 | 46,820 | 1,579 | |||||||||
|
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|
|
|
|
|
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|
Carrying amount |
369,329 | 373,276 | 12,593 | |||||||||
|
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|
|
|
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Statements of financial position
| ChipMOS Shanghai | ||||||||
| December 31, 2017 |
December 31, 2017 |
|||||||
| NT$000 | US$000 | |||||||
|
Current assets |
3,380,641 | 114,056 | ||||||
|
Non-current assets |
2,766,839 | 93,348 | ||||||
|
Current liabilities |
(460,054 | ) | (15,521 | ) | ||||
|
Non-current liabilities |
(489,097 | ) | (16,501 | ) | ||||
|
|
|
|
|
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|
Total net assets |
5,198,329 | 175,382 | ||||||
|
|
|
|
|
|||||
|
Group’s share |
2,340,506 | 78,965 | ||||||
|
Depreciable assets |
703,536 | 23,736 | ||||||
|
Goodwill |
22,118 | 746 | ||||||
|
Inter-company transactions and amortization |
(6,104 | ) | (206 | ) | ||||
|
|
|
|
|
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|
Carrying amount |
3,060,056 | 103,241 | ||||||
|
|
|
|
|
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Statements of comprehensive income
| JMC | ||||||||||||
| Year ended December 31, | ||||||||||||
| 2016 | 2017 | 2017 | ||||||||||
| NT$000 | NT$000 | US$000 | ||||||||||
|
Revenue |
1,667,761 | 1,322,928 | 44,633 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Profit for the year from continuing operations |
136,303 | 4,414 | 149 | |||||||||
|
Other comprehensive income, net of income tax |
(627 | ) | 2,903 | 98 | ||||||||
|
|
|
|
|
|
|
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|
Total comprehensive income |
135,676 | 7,317 | 247 | |||||||||
|
|
|
|
|
|
|
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|
Dividend received from the associate |
5,730 | 14,325 | 483 | |||||||||
|
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| ChipMOS Shanghai | ||||||||
| Year ended December 31, | ||||||||
| 2017 | 2017 | |||||||
| NT$000 | US$000 | |||||||
|
Revenue |
1,141,415 | 38,509 | ||||||
|
|
|
|
|
|||||
|
Loss for the year from continuing operations |
(348,472 | ) | (11,757 | ) | ||||
|
Other comprehensive income, net of income tax |
— | — | ||||||
|
|
|
|
|
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|
Total comprehensive income |
(348,472 | ) | (11,757 | ) | ||||
|
|
|
|
|
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|
Dividend received from the associate |
— | — | ||||||
|
|
|
|
|
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According to IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, total comprehensive income of ChipMOS Shanghai for the three months ended March 31, 2017 was included in the Group’s consolidated statement of comprehensive income with the adjustments of ceasing to recognize depreciation and amortization expenses and the elimination of inter-company transactions. Information about discontinued operations is provided in Note 18.