AU OPTRONICS CORP | CIK:0001172494 |

 

Investments in equity-accounted investees at the reporting dates consisted of the following:

 

		December 31,
		2017			2016
		(in thousands)
Associates		$	5,286,487			4,853,325
Joint ventures			310,800			325,012
		$	5,597,287			5,178,337

 

 

				Principal		December 31, 2017						December 31, 2016
Name of associate		Principal activities		place of business		Ownership interest			Amount			Ownership interest			Amount
							%		(in thousands)				%		(in thousands)
Lextar Electronics Corp. (“Lextar”)		Manufacturing and sales of Light Emitting Diode		Taiwan ROC			27		$	3,104,955			25		$	3,082,856
Raydium Semiconductor Corporation (“Raydium”)		IC design		Taiwan ROC			18			678,908			18			712,829
Star River Energy Corp. (“SREC”)		Holding company		Taiwan ROC			34			533,840			34			531,805
Daxin Materials Corp. (“Daxin”)		Research, manufacturing, and sales of display related chemicals		Taiwan ROC			25			573,571			25			525,835
SSEC		Holding company		Taiwan ROC			37			369,153			-			-
Others										26,060						-
									$	5,286,487					$	4,853,325

 

Prior to May 2015, the Company was able to exercise significant influence over the operating policies of Qisda, and accounted for its investments in Qisda under the equity method of accounting. Since the Company and Qisda had mutual holdings, the share of profit or loss was recognized using the treasury stock method.

 

In May 2015, the Company reassessed its relationships with Qisda and determined that it is no longer able to exercise significant influence over Qisda. Therefore, the Company reclassified its investment in Qisda as noncurrent available-for-sale financial asset measured at fair value. The difference between the fair value of the investment and carrying amount accounted for under the equity method as at the date of the reclassification was recognized in profit or loss. Further, previously recognized other comprehensive income or loss and other equity reserves related to the Company’s investment in Qisda were also reclassified to profit or loss. In total, a loss of $110,136 thousand was recognized under other gains and losses in the consolidated statement of comprehensive income for the year ended December 31, 2015.

 

On October 1, 2016, Raydium, the associate of the Company, issued its new shares in exchange for all outstanding shares of another associate of the Company, Dazzo Technology Corporation (“Dazzo”). Subsequent to the share exchange, the Company’s ownership in Raydium increased from approximately 16% to 18%. The transaction did not result in any material impact on the Company’s consolidated financial statements.

 

There is no individually significant associate for the Company. The following table summarized the amount recognized by the Company at its share of those associates.

 

		For the years ended December 31,
		2017			2016			2015
		(in thousands)
The Company’s share of profits of associates		$	251,699			18,644			248,165
The Company’s share of other comprehensive loss of associates			(62,084)			(29,460)			(71,585)
The Company’s share of total comprehensive income (loss) of associates		$	189,615			(10,816)			176,580

 

 

AUO, through its subsidiary AUSG, entered into a joint venture agreement with SunPower Technology, Ltd. (“SPTL”) which is 100% owned by SunPower Corporation. In accordance with the joint venture agreement, the Company acquired its 50% ownership interests of AUO SunPower Sdn. Bhd. (“AUSP”) on July 5, 2010 (co-investment date) by contributing technology with an estimated fair value of US$30,000 thousand (equivalents to $966,600 thousand) and agreed to contribute additional cash over time. The total cash payments made by the Company amounted to US$180,069 thousand. In September 2016, AUSG disposed of its entire 50% interest in AUSP to SPTL for total selling price of $5,408,546 thousand (US$170,100 thousand) in cash and recognized a loss on disposal, net of tax, amounting to $382,608 thousand. The selling price will be settled with repayment of installments over the years. As of December 31, 2017 and 2016, the outstanding selling price amounting to US$61,100 thousand, which will be received in cash at US$1,100 thousand, US$30,000 thousand and US$30,000 thousand in year 2018, 2019 and 2020, respectively, are classified under other current assets and other noncurrent assets, respectively, by its liquidity.

 

 

There is no individually significant joint venture for the Company. The following table summarized the amount recognized by the Company at its share of those joint ventures.

 

		For the years ended December 31,
		2017			2016			2015
		(in thousands)
The Company’s share of profits (losses) of joint ventures		$	(12,693)			82,134			201,287
The Company’s share of other comprehensive income (loss) of joint ventures			-			(314,710)			394,132
The Company’s share of total comprehensive income (loss) of joint ventures		$	(12,693)			(232,576)			595,419

 

As at December 31, 2017 and 2016, none of the Company’s investments in equity-accounted investees was pledged as collateral.