Professional Documents
Culture Documents
Contents
Contents
-
192,941,204,820
361,353,571,655
7,069,308,500
157,246,082,013
173,797,761,474
331,043,843,487
[ ]
1.
-
7,197,689,000
168,412,366,835
2. ()
-
-
3. ()
2,613,059,447
2,613,059,447
3,622,353,632
7,493,294,238
52,657,248,020
3,551,937,372
3,551,937,372
3,383,326,662
5,079,202,472
46,967,596,162
-(
)
192,572,318,073
359,987,806,514
7,069,308,500
156,216,289,526
173,859,494,381
330,075,783,907
4.
( :)
[/ ]
5. ( : )
1.
167,415,488,441
. ( : )
7,197,689,000
2,642,628,514
3,552,827,215
7,456,923,103
50,083,248,020
3,936,476,527
3,327,916,489
5,083,772,146
44,707,596,162
-(
)
undivided
Current period
Audit report
[Consolidated financial statements of Parent Company and Holding Company based on the audit opinions and financial requirements]
(Unit: KRW)
Last period
Items
1. Audit opinions
-Audit opinion
-estimate of the uncertainty
of continued existence of
enterprises
4. Consolidated subsidiaries
(Unit: Company)
-Equity attributable to
owners of parent company
2,613,059,447
2,613,059,447
3,622,353,632
7,493,294,238
52,657,248,020
361,353,571,655
192,941,204,820
168,412,366,835
7,197,689,000
3,551,937,372
3,551,937,372
3,383,326,662
5,079,202,472
46,967,596,162
331,043,843,487
173,797,761,474
157,246,082,013
7,069,308,500
(Unit : KRW)
Last period
Current period
undivided
330,075,783,907
173,859,494,381
undivided
359,987,806,514
192,572,318,073
7,069,308,500
44,707,596,162
156,216,289,526
50,083,248,020
5,083,772,146
7,197,689,000
7,456,923,103
3,327,916,489
167,415,488,441
3,552,827,215
3,936,476,527
-Total equity
2,642,628,514
-Capital stock
- Revenue generated by sales
and services
-Operating profit
-Profit from continuing
operations before income tax
expenses
-Net Income
2.
2014-02-25
158,757,469,582
168,412,366,835
7,069,308,500
7,197,689,000
3.
4.
[]
5.
157,246,082,013
128,268,037,104
[ 3 ]
(%)
=(-)/
100
[
(/
)100(%)
168,412,366,835
]
[ 4 ]
(
,
)
( : )
: %, )
( : %, )
2. Auditors
3. Date of audit receipt and
report
2014-02-25
Relevant Disclosure
[Capital erosion rate]
158,757,469,582
168,412,366,835
7,069,308,500
Last period
7,197,689,000
Current period
(Unit: KRW)
Items
Capital erosion rate (%) =
[(Capital - Equity) / Capital
100]
Equity - Parent company or
the holding company, except
if they have non-controlling
interests;
Capital
Three years
ago
(Unit: KRW)
128,268,037,104
Two fiscal
years ago
157,246,082,013
168,412,366,835
[Loss from operations before income tax expense in the past three fiscal years]
(Unit: KRW)
Current period
Last period
Before Last period
Items
(Loss from continuing
operations before income tax
expense / capital)100(%)
Losses from continuing
operations before income tax
expense
Equity - when the parent
company or holding company
includes non-controlling
interests
Current fiscal
year
Items
Operating losses (in
the case of the
Parent Company's
separate financial
statements, or in the
case of a holding
company
consolidated
financial statements)
[ 50% ]
50% (%) =
[
/ ]x100
[ ]
No
No
(Unit : KRW)
(Unit: KRW)
14
2013 01 01
2013 12 31
13
2012 01 01
2012 12 31
Audit report for consolidated financial statements of Celltrion Pharm Co., Ltd.
14th period
January 1, 2013
13th period
January 1, 2012
to December 31, 2012
. .
. .
.
, "CT-P06 " "CT-P13 " 2010 CT-P06 13,000 , 2011 CT-P13 31,600 , 2012
CT-P13 CT-P1333,82 0 .
5.41% 20.96% .
, 50,000
50,000 .
51-7
2014 2 21
(2014 2 21 ) .
.
Legal Accounting
Audit report review by external auditors
Celltrion Pharm Co., Ltd.
Shareholders and Board of Directors
The auditors audited the financial position, annual profit and loss in the period, the Statement of Changes in equity and the Statement of Cash Flows of Celltrion Pharmacy Co., Ltd as of December 31, 2013 and as of December 31, 2012.
We conducted our auditing in accordance with auditing standards. The standards require that the auditors should plan and conduct corresponding auditing procedures in order to get a reasonable assurance that the there is no material misstatements in the
financial report. An auditing procedure includes examining audit evidences supporting the figures related to the financial report and disclosures enumerated in the financial statements. An auditing procedure also includes the analysis of the overall contents
of the financial statements and the analysis of the accounting principles adopted and accounting estimates in the administrative financial statements. We believe that the auditing procedures conducted by our audits shall provide reasonable assurance for audit
opinions.
The auditors believe that in accordance with the K-IFRS, the financial statements referred to above fairly presents, in all material respects, the financial position of Celltrion Pharmacy Co., Ltd. as of 31 December 2013 and its financial performance and cash
flows from December 31, 2012 to December 31, 2013.
In respect of the items with no influence upon audit opinions such as the one presented in the 32th note, the Company signed the Basic Contract of Dealership Grant with Healthcare Co., Ltd in 2008 and the long-term advance of 25,000 KRW MN was paid
to Celltrion Healthcare. In accordance with the revised Basic Contract of Dealership Grant signed in December 2012, the prices of 9 kinds of products including CT-P06 will be settled. The CT-P06 rented in 2011 deducted 2,760 KRW MN from the long-term
advance of 25,000 KRW MN. The CT-P13 purchased this year deducted 2,780 KRW MN from the long-term advance. The residual amount of the long-term advance stands at 19,460 KRW MN.
In addition, the Company purchased and possessed a safety stock of 13,000 KRW MN worth of CT-P06 in 2010 and another of 31,600 KRW MN worth of CT-P13 in 2011 based on the CT-P06 Product-Supply Contract, and the CT-P13 Product-Supply Contract.
With the popularization of CT-P13 in 2012, the Company purchased another 33,820 KRW MN worth of CT-P13.
As of December 31, 2010, the amount recognized in the long-term advance payments and inventory assets for sales right acquisition and purchase of goods amounts to 5.41% and 20.96% of the total assets at the end of the current period, respectively.
Meanwhile, Seo Jeongjin, the acting director and controlling shareholder of the Group, regards the 50,000 shares of registered common stock of Celltrion Holdings and 50,000 shares of registered common stock of Celltrion Healthcare as the guarantee of
long-term advance payment.
51-7 Banpo-dong, Seocho-gu, Seoul
LIAN Accounting Corporation
Acting Director Jun Geun Cho
Febuary 21, 2014
This report is effective as of Febuary 21, 2014, the audit report date. Certain significant events
occurring after the audit date, which may have a material impact on the financial report, could
have the audit report revised.
10
14() 2013 12 31
13() 2012 12 31
( : )
4,6,35
-
10,071,947,222
137,318,114,434
252,077,886
2,989,438,922
140,615,319,662
13()
4,7,35
6,577,607,180
29,789,826,809
14()
34,685,000,643
5,582,500,000
4,8,35
5,893,668,688
84,372,086,361
4,8,35
-
11,051,782,504
4,9,35
6,538,188,380
80,129,309,501
11
10,32
I.
4,8,35
7,301,905,855
1,305,760,032
4,300,795,955
222,669,692,080
114,870,320,814
7,301,905,855
1,503,033,255
1,261,472,705
189,460,464,245
4,9,35
144,860,958,371
II.
12
29
14,15
13,33,34
359,987,806,514
19,460,000,000
3,327,834,852
42,112,437,015
330,075,783,907
22,240,000,000
4,902,342,604
37,381,389,012
11,32
826,128,074
20,770,803,164
166,318,153,660
651,451,004
64,065,429,067
64,966,902,712
64,388,287,635
5,555,885,908
108,892,591,669
4,16,32,35
4,5,16,32,35
91,925,869
23,641,575,001
26,254,164,413
19,366,185,948
I.
4,5,17,35
165,570,483,063
4,17,35
693,792,951
140,293,814,081
192,572,318,073
5,917,091,480
13,664,661,400
136,634,536,646
173,859,494,381
II.
19
53,877,646
21
16,307,289,914
250,022,641
20
18
505,964,483
I.
22
II.
156,216,289,526
10,814,384,446
330,075,783,907
23
359,987,806,514
167,415,488,441
III.
11
21
22
23
4,17,35
19
20
4,5,16,32,35
4,16,32,35
4,5,17,35
18
4,8,35
4,9,35
12
13,33,34
14,15
29
11,32
4,6,35
4,7,35
4,8,35
4,8,35
4,9,35
10,32
11
Annotation
Financial Statements
26,254,164,413
826,128,074
5,555,885,908
19,366,185,948
505,964,483
166,318,153,660
165,570,483,063
693,792,951
53,877,646
192,572,318,073
137,318,114,434
10,071,947,222
34,685,000,643
5,893,668,688
80,129,309,501
6,538,188,380
222,669,692,080
4,300,795,955
1,305,760,032
7,301,905,855
144,860,958,371
42,112,437,015
3,327,834,852
19,460,000,000
359,987,806,514
136,634,536,646
13,664,661,400
5,917,091,480
156,216,289,526
330,075,783,907
108,892,591,669
64,388,287,635
20,770,803,164
23,641,575,001
91,925,869
64,966,902,712
64,065,429,067
651,451,004
250,0 22,641
173,859,494,381
140,615,319,662
2,989,438,922
252,077,886
29,789,826,809
6,577,607,180
5,582,500,000
84,372,086,361
11,051,782,504
189,460,464,245
1,261,472,705
1,503,033,255
7,301,905,855
114,870,320,814
37,381,389,012
4,902,342,604
22,240,000,000
330,075,783,907
(Unit: KRW)
The 13th period
140,293,814,081
16,307,289,914
10,814,384,446
167,415,488,441
359,987,806,514
Balance sheet
14th period (present), ending December 31, 2013 to present
13th period (before), ending December 31, 2012 to present
Company name: Celltrion Pharm Co., Ltd.
Items
Assets
I. Current Assets
Cash and cash equivalents
Financial institution Deposits
Accounts Receivable
Other receivables
Other financial assets
Inventories
Other current assets
II. Non-current assets
Other receivables
Other financial assets
Investment in subsidiaries
Tangible assets
Intangible assets
Deferred tax assets
Other non-current assets
Total assets
Liabilities
I. Current liabilities
Trades payable
Other debt payments
Short-term loans
Other current liabilities
II. Non-current liabilities
Long-term loans
Estimated liabilities
Retirement benefit liabilities
Total liabilities
Capital
I. paid-up capital
II. Retained earnings
III. Other capital
Total equity
Liabilities and Shareholders' Equity
12
I.
II.
III.
14() 2013 01 01 2013 12 31
( : )
31,223,558,555
13,484,037,607
44,707,596,162
13()
34,698,390,872
15,384,857,148
2,131,004,345
24,008,782,064
50,083,248,020
14()
24,26,32
1,441,929,964
25,799,537,805
24,34
26,32
25,26,32
301,429,754
5,083,772,146
7,456,923,103
IV.
754,463,958
571,848,031
2,241,820,656
27
27,32
1,420,350,099
1,604,885,344
1,187,507,812
28
3,327,916,489
3,552,827,215
(608,560,038)
4,908,987,773
910,198,701
28,32
29
3,936,476,527
2,642,628,514
V.
VI.
VII.
3,936,476,527
VIII.
2,642,628,514
IX.
30
145
185
310
310
X.
13
13,484,037,607
44,707,596,162
13th period
15,384,857,148
Annotation
24,34
34,698,390,872
Items
24,26,32
I. Revenue
II. Selling costs
2,131,004,345
24,008,782,064
301,429,754
5,083,772,146
1,441,929,964
7,456,923,103
2,241,820,656
25,799,537,805
571,848,031
26,32
754,463,958
1,420,350,099
1,604,885,344
25,26,32
27
27,32
4,908,987,773
(608,560,038)
3,327,916,489
1,187,507,812
910,198,701
3,552,827,215
28
29
28,32
3,936,476,527
2,642,628,514
3,936,476,527
2,642,628,514
30
145
185
310
310
14
14() 2013 01 01 2013 12 31
13() 2012 01 01 2012 12 31
( : )
3,936,476,527
126,809,057,574
5,983,187,227
1,030,061,599
3,521,548,969
9,728,184,873
1,030,061,599
20,919,144,857
3,936,476,527
(1,096,157,346)
156,216,289,526
104,952,047,974
5,917,091,480
6,145,637,500
4,456,746,815
13,664,661,400
20,156,433,357
2012 1 1 ()
160,959,500
129,565,228,146
762,711,500
129,565,228,146 13,664,661,400
3,530,896,935
16,307,289,914
2,642,628,514
10,814,384,446
4,615,928,359
281,364,607
167,415,488,441
4,615,928,359
3,659,277,435
281,364,607
2,642,628,514
156,216,289,526
7,069,308,500
2012 12 31 ()
7,069,308,500
5,917,091,480
2013 1 1 ()
128,380,500
133,096,125,081
13()
( : )
7,197,689,000
2013 12 31 ()
14()
(1,782,726,172)
(5,541,000,792)
(66,251,315,857)
(70,873,447,760)
1. ( 31)
41,626,000
(3,341,960,849)
647,510,369
(1,105,450,140)
325,408,884
(78,423,194)
(4,869,117,593)
I.
2.
3.
4.
5.
49,250,111,892
5,378,358,596
41,698,047,229
(66,961,566,554)
5,541,414,400
9,889,574,267
2,122,685,095
(27,766,635,833)
1.
II.
15
126,809,057,574
sum
5,983,187,227
Other capital
3,936,476,527
1,030,061,599
156,216,289,526
9,728,184,873
3,521,548,969
Retained earnings
1,030,061,599
5,917,091,480
156,216,289,526
104,952,047,974
3,936,476,527
(1,096,157,346)
5,917,091,480
2,642,628,514
281,364,607
6,145,637,500
-
capital
4,456,746,815
13,664,661,400
Items
20,156,433,357
160,959,500
129,565,228,146
13,664,661,400
3,659,277,435
Net Income
Stock option Recognition
762,711,500
129,565,228,146
281,364,607
4,615,928,359
20,919,144,857
7,069,308,500
4,615,928,359
Net Income
Stock option Recognition
167,415,488,441
16,307,289,914
10,814,384,446
3,530,896,935
133,096,125,081
7,197,689,000
128,380,500
(1,782,726,172)
(5,541,000,792)
(66,251,315,857)
41,626,000
647,510,369
(70,873,447,760)
(Unit: KRW )
325,408,884
(3,341,960,849)
2. Interest receivable
(1,105,450,140)
3. Dividends received
(78,423,194)
(4,869,117,593)
4. Interest payments
49,250,111,892
(66,961,566,554)
5,378,358,596
41,698,047,229
9,889,574,267
2,122,685,095
5,541,414,400
(27,766,635,833)
16
1,818,182
121,045,755
743,796,491
1,119,375,000
10,000,000
2,071,561
1,460,747,328
143,599,906
554,358,833
(116,211,678,446)
2,928,439
238,237,500
1,145,154
(37,656,210,100)
5,376,100,498
37,760,618,906
5,283,620,520
2,528,000,000
56,690
389,692,282
277,617,440
2.
3,000,000,000
818,041,387
4,500,000
670,024,200
144,847,660
1,248,020,533
289,170,026
3,181,018,802
166,614,989
1,042,834,236
250,761,464
721,600
4,789,560
58,211,772,780
7,399,660,668
148,282,778
74,117,203,682
21,160,080,716
4,511,097,501
105,725,930,677
3,521,548,969
93,709,611,443
III.
180,303,892,184
50,000,000,000
40,188,062,474
1.
70,303,892,184
(19,592,407,761)
(74,577,961,507)
3,930,800
19,588,476,961
110,000,000,000
74,577,086,507
2.
875,000
V. ()
10,071,947,222
2,989,438,922
7,082,508,300
(3,338,784)
2,989,438,922
1,381,157,535
1,608,281,387
(6,354,949)
VI.
IV.
VII.
17
743,796,491
1,119,375,000
2,071,561
1,460,747,328
143,599,906
554,358,833
10,000,000
(116,211,678,446)
1,818,182
121,045,755
238,237,500
(37,656,210,100)
5,376,100,498
37,760,618,906
2,928,439
5,283,620,520
2,528,000,000
1,145,154
Disposal of machinery
Vehicles disposal
Gonggigu disposal of equipment
56,690
389,692,282
Reduction of deposits
Increase in deposits
3,000,000,000
1,248,020,533
818,041,387
4,500,000
670,024,200
144,847,660
289,170,026
3,181,018,802
250,761,464
58,211,772,780
1,042,834,236
148,282,778
21,160,080,716
Acquisition of machinery
Acquisition of equipment gonggigu
Acquisition of assets under construction
Acquisition of software
721,600
4,789,560
7,399,660,668
74,117,203,682
105,725,930,677
3,521,548,969
93,709,611,443
Acquisition of memberships
Acquisition of R & D
III. Cash flow from financing activities
-
50,000,000,000
40,188,062,474
180,303,892,184
70,303,892,184
(19,592,407,761)
110,000,000,000
(74,577,961,507)
3,930,800
(6,354,949)
19,588,476,961
(3,338,784)
1,608,281,387
875,000
7,082,508,300
74,577,086,507
1,381,157,535
2,989,438,922
2,989,438,922
10,071,947,222
18
1.
14() 2013 12 31
13() 2012 12 31
2000 11 17 2009 . ,
2009 .
2006 2 3 , 7,197,689 .
(%)
67.97
0.01
100.00
32.02
9,785,555
4,608,692
()
14,395,378
1,131
2.
.
.
(1)
1)
2013 1 1 .
. 1001 ' '
. .
19
The company was set up on November 17, 2000. It is mainly aimed at software development. After the mid-2009 merger with Hanseo Pharmaceutical Co., Ltd., the company vigorously developed production and sales of pharmaceutical products. In the middle
of 2009, the parent company changed the name from Codinus to Celltrion, and the head office address became Yeoksam-dong, Gangnam-gu, Seoul.
Ownership (%)
67.97
0.01
100.00
32.02
9,785,555
4,608,692
14,395,378
1,131
# of shares
The parent company was listed on the Korea Exchange KOSDAQ market on February 3, 2006. After that, the company acquired 7,197,689 KRW 000 as capital at the end of the period through several paid or unpaid capital increases or decreases.
So far, the status quo of main shareholders of the parent company is as follows.
Name of Shareholder
Celltrion
Treasury Stock
The total system
Etc
K-IFRS 1001 Presentation of Financial Statements is amended to divide items presented as comprehensive income into two groups, based on whether they have already been recognized in profit or loss for the period. Amendments have an impact on
the presentation of financial statements but not on the Companys financial position and performance.
The Company applies the changes in the accounting policies for prior periods retroactively and adjusts the financial statements for prior periods retroactively.
20
. 1019 ''
, , .
, () ( )
. .
.
. 1028 ' '
' , . , ,
. .
. 1032 ,
. 1110 ''
' . ,
. .
. 1111 ''
111 '' , .
, , , IFRS ,
.
21
The amendment requires entities to immediately recognize all actuarial gains and losses incurred in other comprehensive income or loss if laws concerning actuarial gains and losses are not applicable any more.
Also, all past service costs incurred from policy changes shall be immediately recognized, and the previous separate calculation of the interest cost and the expected returns on plan assets have been revised to calculate net interest expense (income) by
applying the discount rate used in the defined benefit obligation measurement in the net defined liabilities (assets). On the other hand, past service costs that are not filled, must be immediately recognized and those incurred from policy changes are
recognized as restricting costs or released pay. There is no material impact of the application of this amendment on the financial statements.
(c). Amendment to K -IFRS 1028, Investments in Associates and Joint Ventures
K-IFRS 1111 Joint Arrangements, K-IFRS 1112 Disclosure of Interests in Other Entities, and K-IFRS 1028 Investment in Associates and Joint Ventures are amended. The Standard regulates the associates and the joint ventures in accordance with the equity
method. In addition, venture capital investment institutions, mutual funds, unit trusts and similar enterprises do not apply this Standard. Exemptions are prescribed in accordance with the equity method. There is no material impact of the application of
this amendment on the financial statements.
(d). Amendment to K-IFRS 1107, Financial Instruments: Disclosures
The amendment requires the Company to disclose information about offsetting and related rights and commitments of financial assets and financial liabilities. In addition, the amendment requires the disclosure of offsetting
of financial products in statements of the financial position, regardless of whether collective agreements or similar commitments offset financial instruments. According to K-IFRS 1032, the Company has no financial instruments
that can be offset and has not signed related agreements. Therefore, the above amendment has no material impact on the financial statements.
(e). K-IFRS 1110, Consolidated Financial Statements
K-IFRS 1111 Joint Agreements applies to all enterprises included in the joint agreement. The agreement is to gain joint control over the two parties. Joint agreements are classified into joint operations or joint ventures. Co-concessionaires recognize and measure
their assets and liabilities, following the relevant IFRS that are applicable to particular assets, liabilities, income and expenses. Joint ventures recognize and account for assets invested in accordance with K-IFRS 1028 Investments in Associates and Joint Ventures,
using the equity method. The Company judges that there is no material impact of the application of this amendment on the financial statements.
22
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This amendment provides a precise definition of fair value, and a single source of fair value measurement and disclosure requirements to improve the consistency and reduce the complexity in K-IFRS. K-IFRS 1113 does not require fair value measurement
required or permitted by other standards. Guidelines are needed if fair value measurement is required or permitted by other standards. The Company judges that there is no material impact of the application of this amendment on the financial statements.
(j). K-IFRS annual improvements
Annual improvements adopted by the Company for the financial year begi nning on January 1, 2013 are as follows. The Co mpany judges that there is no material impact of the application of this
amendment on the financial statements.
K-IFRS 1001, Financial Statements
K-IFRS 1016, Tangible Assets
K-IFRS 1032, Financial Instruments: Presentation
Publis hed s tandards, amendments and i nterpretati o ns iss ued but no t effective for the fi nancial year begi nni ng o n J anuary 1, 2013, witho ut earli er appli cati o n by the Co mpany, are as
foll ows:
Amendment to K -IFRS 1032, Financial Instruments: Presentation
This amendment reserves the legally enforceable right to offset financial assets and liabilities. Only when settling on a net basis or assets and liabilities are settled simultaneously can financial assets and liabilities be
offset. This amendment is effective for the annual period beginning on January 1, 2014, and the Company judges that there is no material impact of the application of this amendment on the financial statements.
24
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The financial statements are based on Law 13.1.1 about external audits of limited companies adopting the Korean International Financial Reporting Standards (K-IFRS) designed by the International Accounting Standards Board.
Except for those stated in the accounting policies and financial instruments, financial statements are prepared on the basis of historical costs.
2) Measurement standard
3) Functional currency
(3) Investments in subsidiaries, related corporations and joint ventures in separate financial statements
Items included in the consolidated financial statements of each of the Companys entities are measured using the currency of the primary economic environment in which the entity operates except for those
specially noted.
The Companys financial statements are prepared in accordance with IFRS 1027 Separate Financial Statements. The Company prepares financial statements at cost on the basis of investment interests held by participants from the parent company, associates
or joint ventures rather than reported result and net assets of the investees. Dividends gained from subsidiaries, associates and joint ventures are recognized as current profits (losses) when the right to receive dividends is confirmed.
At the end of each reporting period, foreign-currency monetary items shall be translated using the relevant closing rates. Nonmonetary items that are measured in terms of historical cost in foreign currencies shall be translated using the exchange rates on
Exchange differences arising from the settlement of monetary items or from translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements shall be recognized
as profits or losses in the period in which they arise. Under certain requirements, exchange differences applied for hedge accounting shall be recognized under other comprehensive income.
(5) Cash and cash equivalents
The Companys cash comprises cash on hand and demand deposits. For short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value are classified as cash
equivalents. Equity instruments are excluded from cash assets. But actual cash assets like shot-term preferred stocks between the acquisition date and the maturity with a fixed maturity are included in cash assets. In accordance with the requirements of
financial companies, bank overdrafts are also included in cash and cash equivalents.
(6)Financial instruments
1) Financial assets
Recognition and measurement
For financial assets that K-IFRS 1039 are applicable to, the Company only recognizes them when becoming a contracting party. Formal purchase and sale of financial assets are recognized on the trade date or settlement date. Financial assets are classified
as financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables, and available-for-sale financial assets, depending on their nature and purpose at initial recognition.
At initial recognition, financial assets are measured at fair value. For financial assets that are not carried at fair value through profit or loss, their initially recognized costs comprise transaction costs directly associated with the acquisition of financial
assets and fair value.
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Financial assets that are held for trading and are recognized at fair value at initial recognition are classified as financial assets at fair value through profits or losses. Transaction costs that are directly related to the acquisition at initial recognition are recognized
in current profit or loss. Financial assets at fair value through profits or losses are presented at fair value in the balance sheet. Profits and losses incurred from changes of fair value are recognized in profits or losses.
Held-to-maturity financial assets are non-derivative financial assets with fixed maturity and determinable payment amount. And the Company has the intention and capability to hold the assets to maturity. After the initial recognition, the assets are valued
at amortized cost using the effective interest method.
Loans and receivables
Non-derivative financial assets with fixed or determinable payment amounts and without quoted prices in an active market are classified as loans and receivables. After the initial recognition, the assets are valued at amortized cost using the effective interest
method.
Available-for-sale financial assets
For available-for-sale financial assets whose losses in fair value are recognized in other comprehensive income, when there is objective evidence that the losses exist, cumulative changes recognized in other comprehensive income should be transferred. If
not, they should be reclassified and transferred from capital reserves to current profit or loss. When impairments losses are confirmed and an increase in the fair value of available-for-sale debt instruments in subsequent accounting periods is objectively related
to some future events, it should be charged as current profits. When fair value is not equal to the acquisition cost (net amount of principal repayment deducting impairment loss), cumulative loss that is reclassified to current profit or loss, which is previously
recognized in current profit or loss, is recognized in charged amount.
Disposal of financial assets
Financial assets are disposed of under two circumstances. The first one happens when the possibility of future cash inflows terminates or the claim right to future cash inflows is transferred, which results in the transfer of most of the risks and rewards that
ownership posed to the Group's financial assets. Under the second circumstance, the Group cannot control the financial asset even though there has been no transfer of the risks and rewards that its ownership poses to the Groups financial assets.
Impairment losses on financial assets
At each reporting date, the Company assesses whether there is any objective evidence that financial assets (or group of financial assets) are impaired. After the initial recognition, if there is more than on objective evidence to prove the result, which could
be estimated to have impacts on the future cash flow of financial assets, the impairment losses for financial assets shall be recognized. Impairment losses for available-for-sale financial assets are recognized in their carrying amount.
The carrying amount of financial assets at amortized cost
When impairment losses occur to the carrying amount of loans, receivables and held-to-maturity financial assets, which are measured at amortized cost, and objective evidence exists, the impairment losses are measured at the initial effective interest
rate (effective interest rate at initial recognition). The estimation is based on the difference between the carrying amount and the present value of expected future cash flow. In this case, estimated bad debts that do not generate future cash flows shall
not be included in impairment losses. The impairments losses are directly charged against the book value of current assets or against the account allowance.
In later periods, the value of the impairment losses may decline. If the reduction is objective and related to incidents happening at the recognition of losses, the recognized impairment losses should be charged by adjusting the allowance. If the recovering
carrying amount is not recognized as initial impairment and does not exceed the previously recognized amortized cost, the charged amount should be recognized in current profits or losses.
Cost of carrying amount of financial assets
For financial assets whose carrying amount cannot be reliably measured at fair value, related financial products with fair value or derivative assets that must be settled by delivery of an equity instrument. If there are objective evidences of impairment,
impairment losses are measured at the current market rate of return and the estimate is based on the difference between the present value of cash flow and the carrying amount.
28
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For available-for-sale financial assets whose losses in fair value is recognized in other comprehensive income, when there is objective evidence that losses exist, cumulative changes recognized in other comprehensive income should be transferred. If not, they
should be reclassified and transferred from capital reserves to current profits or losses. When fair value is not equal to the acquisition cost (net amount of principal repayment deducting impairment losses), cumulative losses that are reclassified to current profits
or loss, which is previously recognized in current profits or losses, is recognized in the charged amount. When impairments losses are confirmed and an increase in the fair value of available-for-sale debt instruments in subsequent accounting periods is
objectively related to some future events, it should be charged as current profits.
2) Financial liabilities
Recognition and measurement
For financial liabilities that are applicable to K-IFRS 1039, the Group only recognizes them in balance sheets when becoming a contracting party. Financial liabilities are classified as financial assets at fair value through profit or loss and other financial liabilities,
depending on their nature and purpose at initial recognition.
At initial recognition, financial liabilities are measured at fair value. For financial liabilities that are not carried at fair value through profit or loss, the costs directly related to issuing are measured at fair value at initial recognition.
Financial liabilities that are held for trading and are recognized at fair value at initial recognition are classified as financial liabilities at fair value through profit or loss. Costs that are directly related to issuing at initial recognition are recognized in current profit
or loss. Financial liabilities at fair value through profits or losses are presented at fair value in balance sheets. Profits and losses incurred from changes of fair value are recognized in profit or loss.
Financial liabilities not carried at fair value through profit or loss
For financial liabilities that are not carried at fair value through profit or loss, except for the following bonds, are measured at amortized cost using the effective interest method after the initial
recognition.
As for financial liabilities generated from transferring financial assets that do not qualify for recognition or for the consistent-approach method, if the transferred assets are measured by their cost after depreciation, the carrying amount of asset-related liabilities
should be transferred using the cost after depreciation to measure related liabilities so as to let the transferees preserve their rights and take on responsibilities. If the transferred assets are measured by fair value, the carrying amount of asset-related liabilities
are transferred using their independently determined fair values to measure related liabilities so as to let the transferees preserve their rights and take on responsibilities.
Agreed loan prices are determined by financial guarantee (except for those financial liabilities that do not qualify for removal or continuing approaches are not applicable to) and a lower interest rate than the market interest rate. The Companys liabilities are
measured at the higher of the following amounts: amount calculated in accordance with K-IFRS 1037, Provisions, Contingent Liabilities and Contingent Assets; or the initial amount, less accumulated amortization recognized in accordance with K-IFRS 1018,
Revenue.
(a).Removal of financial liabilities
If financial liabilities (or part of financial liabilities) are gone (namely cancellation or expiration of contractual obligations), they can be derecognized from the statements of financial position. When existing borrower and lender exchange debt instruments with
different conditions or the condition of existing financial liabilities (or part of financial liabilities) change, initial financial liabilities should be derecognized and new financial liabilities should be recognized. The difference between the carrying amount of financial
liabilities (or part of financial liabilities) that are gone or transferred to the third party and the payment are recognized in current profits or losses.
(b).Offset of financial assets by financial liabilities
The Company preserves the legal right to offset recognized financial assets with financial liabilities; when using net value to settle assets, if there are also liabilities to be settled, financial assets can be offset by financial liabilities and presented in balance sheets.
(c).Combined financial instruments
According to the nature of the contract, the Company classified combined financial instruments (including convertible bonds) and convertible bonds issued by the Company into financial liabilities and capital respectively. Entity options with fixed amount that
are settled through fixed amount of financial assets are equity instruments. The value of liability components are estimated at market interest rates, which is to be issued and applicable to ordinary bonds. If the amount changes due to conversion, until the
expiration or maturity of financial instruments, it is measured at amortized cost using effective interest method and is recognized as liability. The equity component is determined by the amount concerning tax effect, which results from deducting the fair value
of financial liabilities from the fair value of convertible bonds. This will not be remeasured subsequently. In addition, for options that are classified as equity (conversion right price, etc.), if they are left in equity when they are exercised, the options shall be
replaced by the amount of capital. Transaction costs incurred from issuing combined financial instruments are distributed to liability and capital components. Transaction costs that are directly related to capital components are recognized in capital directly.
For transaction costs that are related to liability components, the carrying amount of liability components is depreciated at the effective interest rate during the ownership of combined financial instruments.
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(7) Inventory
The cost of inventories shall comprise all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present locations and conditions. The cost of inventories shall be assigned by using the first-in, first out (FIFO) formula.
Transit raw materials shall be assigned by using specific identification of their individual costs.
Inventories shall be measured using the lower cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Net
realizable value shall be evaluated in each subsequent period.
When inventories are sold, the carrying amount of those inventories shall be recognized as an expense in the period in which the related revenue is recognized. The amount of any write-downs of inventories to net realizable value and all losses of inventories
shall be recognized as expenses in the periods in which the write-downs or losses occur. The amount of any reversal of a write-down of inventories arising from an increase in net realizable value shall be recognized as a reduction in the amount of inventories
recognized as an expense in the period in which the reversal occurs.
The cost of tangible assets upon initial recognition shall comprise the acquisition costs after adding tariffs and nonrefundable taxes and deducting purchase discounts and tax refunds, adding related costs needed for operating the assets according to the will
of the management, deducting costs for asset liquidation, disposal and maintenance.
If inflows of future economic benefits generated from an asset are highly likely and its cost can be calculated, the after-cost is included in the assets book value or the asset is recognized as a special asset when appropriate. Costs generated from everyday
maintenance should be recognized as current profits or losses.
Useful life
30 years
20 years
515 years
5 years
Depreciation method
Straight-line depreciation
Straight-line depreciation
Straight-line depreciation
Straight-line depreciation
Land is not considered to depreciate in value; for other tangible assets, the following useful lives and depreciation methods are used to determine their depreciation.
Asset type
Buildings
Construction materials
Mechanical devices
Other tangible assets
For the part of cost that is related to the formation of tangible assets and significant to the total cost of tangible assets, depreciation should be calculated separately.
The depreciation methods used for tangible assets, their residual values, and their service lives are reviewed at the end of each reporting period..
When it comes to dealing with the book values of tangible assets, when future economic benefits cannot be expected, they are removed. Liabilities generated during disposal should be recognized as current profits or losses.
(9) Intangible assets
1) Recognition and measurement
An intangible asset shall be recognized if and only if (a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and
(b) the cost of the asset can be measured reliably. After initial recognition, the cumulative value of depreciation and impairment losses is subtracted from the cost of the intangible asset and the result is treated as the book value of the intangible asset.
(a). Separate acquisition
The cost of a separately acquired intangible asset comprises (a) its purchase price, including import duties and nonrefundable purchase taxes, after the deduction of trade discounts and rebates and (b) any cost directly attributable to preparing the asset for
its intended use.
32
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(b). Goodwill
Goodwill is measured as the difference between (a) the aggregate of the consideration transferred, any non controlling interest in the acquired entity, and, in a business combination achieved in stages, the acquisition-date fair value of the acquirers previously
held equity interest in the acquired entity and (b) the net identifiable assets acquired.
Expenditures on research (or in the research phase of an internal project) shall be recognized as expenses when they are incurred. An intangible asset arising from development (or from the development phase of an internal project) shall be recognized if and
only if an entity can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale; its intention to complete the intangible asset and use or selling of it; its ability to use or sell the intangible
asset; how the intangible asset will generate probable future economic benefits; the availability of adequate technical, financial, and other resources to complete the development and to use or sell the intangible asset; and its ability to measure reliably the
expenditures attributable to the intangible asset during its development. The cost of an internally generated intangible asset is the sum of expenditures incurred from the date when the intangible asset first meets the recognition criteria and needed costs directly
related to the creation of the asset, its manufacture, and its management according to the operators intention. Internally generated goodwill shall not be recognized as an asset.
2) Useful life and depreciation
For intangible assets with finite useful lives, depreciation shall begin when the asset is available for use and the straight-line method will be used to determine its residual value over its useful life. Depreciable amount is the cost of an asset less its residual value.
When the asset is at the end of its useful life, the residual value is determined by a commitment by a third party to purchase the asset or by the active market for the intangible asset. If no such active market exists at the end of its useful life, the residual value
shall be assumed to be zero. The depreciation period and the depreciation method for an intangible asset with a finite useful life shall be reviewed at the end of each financial year. If changes are needed, such changes shall be accounted for as changes in
accounting estimates.
An intangible asset with an indefinite useful life shall not be amortized. At the end of each financial year or whenever there is an indication that the intangible asset may be impaired, a test for asset impairment comparing its recoverable amount with its carrying
amount is required. The indefinite useful life of an intangible asset shall be reviewed at the end of each financial year. If changes are needed, such changes shall be accounted for as changes in accounting estimates.
If there will be no future economic profit arising from using or disposing of an intangible asset, it shall be eliminated from the statement of financial position. Any profit or loss arising from the disposal of the intangible asset shall be determined by the difference
between the net sales price and the carrying amount and shall be recognized as a profit or loss in the period in which the disposal occurs.
34
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For all assets, except inventories, assets arising from construction contracts, deferred tax assets, assets arising from employee benefits, financial assets, investment properties measured at fair value, and noncurrent assets held for sale, impairment losses should
be recognized in the following ways.
Whenever there is any indication of impairment for an intangible asset with an indefinite useful life, an intangible asset not yet available for use, or goodwill acquired in a business combination, impairment should be tested annually by comparing the carrying
amount with the recoverable amount. An entity shall assess at the end of each reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount shall be estimated for the individual asset.
If it is not possible to estimate the recoverable amount of the individual asset, the entity shall determine the recoverable amount of the cash-generating unit to which the asset belongs.
The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset shall be reduced to its
recoverable amount. The impairment loss shall be recognized immediately in profit or loss.
For the purpose of impairment testing, goodwill acquired in a business combination shall, from the acquisition date, be allocated to each of the acquirers cash-generating units, or groups of cash-generating units, that is expected to benefit from the synergies
of the combination. The impairment test for a cash-generating unit to which goodwill has been allocated shall be performed annually or whenever there are indications of impairment by comparing the carrying amount with the recoverable amount. If the
recoverable amount is less than the carrying amount, an impairment loss shall be recognized. An impairment loss for a cash-generating unit shall be recognized in the following order. Firstly, decrease the book value of the cash-generating unit which is allocated
the impairment loss of goodwill. Secondly, decrease the book value of other assets on a pro rated basis.
An entity shall assess at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset other than goodwill may no longer exist or may have decreased. If any such indication exists, the entity
shall estimate the recoverable amount of that asset. An impairment loss recognized in prior periods for an asset other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the assets recoverable amount
since the last impairment loss was recognized. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount (net of amortization or depreciation) when the impairment loss
had not been recognized for the asset in prior years. A reversal of an impairment loss for an asset other than goodwill shall be recognized immediately in profit or loss. A reversal of an impairment loss for a cash-generating unit shall be allocated to the assets
of the unit, except for goodwill, pro rata with the carrying amounts of those assets. An impairment loss recognized for goodwill shall not be reversed in a subsequent period.
Borrowing costs that are directly attributable to the ajcquisition, construction or production of a qualifying asset shall be capitalized as part of the cost of that asset.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are recognized as an expense during the period in which they occur.
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing less any investment
income on the temporary investment of those borrowings. To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalization by applying
a capitalization rate to the expenditures on that asset. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the entity that are outstanding during the period, other than borrowings made specifically for
the purpose of obtaining a qualifying asset. The amount of borrowings costs that an entity capitalizes during a period shall not exceed the amount of borrowing costs it incurred during that period.
(12) Government grant
Government grants shall not be recognized until there is reasonable assurance that the Group will comply with the conditions attaching to them and the grants will be received. Income arising from government loans that are received below market interest
rates shall be recognized in government grants.
Grants related to income shall be recognized in income on a systematic basis over the periods in which the grants are intended to compensate for the related costs. Grants related to assets shall be used to deduct the depreciation of the asset (valued at carrying
amount) and are recognized as current loss or profits.
A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs shall be recognized in profit or loss of the period in which
it becomes receivable. A government grant may take the form of a transfer of a non-monetary asset. In these circumstances, the fair value of the non-monetary asset shall be accessed. Both grant and asset shall be accounted for at that fair value.
A government grant that requires repayment in the future shall be recognized based on changes in accounting estimate.
36
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
1) Finance leasing
At the commencement of the lease term, finance leases as assets and liabilities shall be recognized at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments, each determined at the inception of
the lease. The discount rate to be used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. Any initial direct costs are added to the amount recognized as an asset.
Minimum lease payments shall be apportioned between the finance charge and the reduction of the outstanding liability. The finance charge shall be allocated to each period during the lease term so as to produce a constant periodic rate of interest on the
remaining balance of the liability. Contingent rents shall be charged as expenses in the periods in which they are incurred.
2) Operating leases
Lease payments under an operating lease shall be recognized as an expense on a straight-line basis over the lease term. All incentives created by new policy or renewed operating lease contracts shall be deducted from lease payments on a straight-line basis
over the lease term. The result shall be recognized as a comprehensive income.
(14) Provision
A provision exists as a result and a present obligation of a past event. It is most likely that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. If
these conditions are met, provisions should be recognized.
If part of or all of the expenditure expected to settle the provision shall be transferred to a third party to offset the liability, the amount of offset shall be recognized and accounted as other assets only to the extent that Group will be certain to receive the offset
by obligation settlement. The amount recognized as assets shall not exceed the amount of provision.
Residual value shall be discussed and the present best estimate shall be reflected and adjusted at the end of the reporting period. If the possibility of an outflow of assets embodying economic benefits required to settle the obligation is not high, related provisions
could be reduced. Provisions shall only refer to the expenditure related to the initial recognition.
Goods or services received in the share-based payment transactions shall be recognized on the reception day. The goods and services received from equity-settled share-based payment transactions shall be recognized as the corresponding increase in capital.
The goods or services received from cash-settled share-based payment transactions shall be recognized as the corresponding increase in liabilities. The goods and services received from share-based payment transactions shall be recognized as expenses if they
fail to satisfy the conditions of being recognized as assets.
1) Equity-settled share-based payment transactions
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During a share-based payment transactions in which Group receives good or services as consideration for equity instruments of the entity (including shares and share options), or in which the entity fails to fulfill the obligation to settle the transaction after
receiving goods or services, the entity shall measure the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received. If the entity cannot estimate reliably the fair value of the goods or services
received, the entity is required to measure the goods or services received and the corresponding increase in equity, indirectly, at the fair value of the equity instruments granted. If only services acquired in specific period are as consideration for equity
instruments granted, services corresponding to equity instruments shall be distributed in the vesting period and recognized as the increase of equity.
Vesting conditions, other than market conditions, are taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount. Ultimately, the amount recognized for goods or services received as consideration
for the equity instruments granted is based on the number of equity instruments that eventually vest. Hence, on a cumulative basis, the number of equity instruments granted shall be renewed if the equity instruments granted do not vest because of failure
to satisfy a vesting condition. The fair value of equity instruments granted shall be based on market prices.
Apart from the deficiency of vesting conditions (other than market conditions) and the failure of equity instruments granted, whether to change the granting conditions of equity instruments is not associative with whether to cancel or to liquidate the equity
instruments. The services received shall be measured at the fair value estimated by the smallest equity instrument on the measurement date. The change shall be recognized if the conditions are changed to be beneficial for employees by increasing the fair
value of the equity payment agreement.
If the equity instruments granted are canceled or liquidated during the vesting period, these equity instruments shall be recognized as vesting ahead. Conversely, recognizing the amount of services received in the rest of the vesting period at present. The amount
paid for employees during cancellation or liquidation shall be recognized as a repurchase of equity instruments and a reduction in the amount of repurchasing, and recognized in expenses during the period.
2) Cash-settled share-based payment
The entity acquires goods or services by incurring cash or liabilities to the supplier of those goods or services for amounts that are based on the price (or value) of the entitys equity instruments (share or share options). For cash-settled share-based payment
transactions, the entity is required to measure the goods or services acquired and the liability incurred at the fair value of the liability at each reporting date. Until the liability is settled, the entity is required to re-measure the fair value of the liability at each
reporting date and at the date of settlement, with any changes in value recognized in profits or losses for the period. The services acquired by employees and incurred liability shall be recognized during the working period.
Sale of goods
(17) Revenue
Revenue shall be measured at the fair value of the consideration received or receivable taking into account the amount of any discounts and volume rebates allowed by the entity.
1)
The entity has transferred to the buyer the significant risks and rewards of ownership of the goods. The entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. The
amount of revenue can be measured reliably. It is probable that the economic benefits associated with the transaction will flow to the entity. And the costs incurred or to be incurred in respect to the transaction can be measured reliably.
2) Lease income
Lease income shall be recognized over the lease period on an accrual basis.
40
2)
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2)
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.
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.
.
41
Short-term employee benefits are non-currency salary, salary, social security contributions during the 12 months from the beginning of accounting cycle. Short-term vacations such as annual paid vacation and sick leave during the 12 months from the beginning
of accounting period are taken into consideration. When the employees are providing services, in exchange for other services, the company recognizes payable amounts as payable expenses after deducting the paid amount; when the paid amount is larger
than payable amount, the company decrease the future payable amount or recognize it as payable expenses according to the amount that can be discounted as cash. Some salaries are recognized as costs according to K-IFRS, and other salaries are recognized
as expenses.
2) Retirement benefits
The retirement benefits system applies to the company. As for retirement benefit system, we pay a certain amount of money to other party (fund). The companys legal obligation and constructive obligation are limited to the agreed-upon amount with the fund.
The amount of retirement benefit is determined according to the retirement benefit system established according to the contribution as well as its interests from the employees and the insurance company.
During a certain period, employees provide services and pay a certain amount of obligatory contributions according to retirement benefit system; deduct already-paid amounts and we get accrued expenses. The part of already-paid contributions that exceed
previous obligatory amounts will be deducted as cash rebate from future contributions, and be recognized as prepaid expenses. Contributions should be recognized as expenses except when we include contributions in cost of assets according to K-IFRS.
On the other hand, the company has set accrued severance benefits for the employees working for the company for less than one year and do not qualify for retirement benefits.
Current tax for current and prior periods shall, to the extent unpaid, to be recognized as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess shall be recognized as an asset. The
part of deducted tax of current income tax of each accounting period that can be deducted from tax loss shall be recognized as assets.
The initially recognized goodwill generated during business combination, as well as other transactions, if the transaction doesnt affect the accounting profit or payable income tax, we dont recognize the temporary differences between the initially recognized
assets and liabilities and tax base as deferred income tax liabilities. Deductible temporary difference related to joint venture share right investment with low possibility to reverse in foreseeable future, and temporary differences with low possibility to generate
companys taxable income tax should not be recognized as deferred income tax assets. If unused deductible tax losses and tax credits can be used to deduct future taxes, we recognized unused tax losses carried forward and tax credits as deferred income
tax assets.
We review the carrying value of deferred income tax assets at the end of each reporting period. When there is low possibility that part of or the whole of deferred income tax assets are taxable, we deduct the carrying value of deferred income tax; when there
is high possibility that the deducted amount of taxable income will increase, we write them down. Until the end of each reporting period, during the accounting period of the realization of related assets and liabilities, we use the proper tax rate to calculate deferred
income tax assets and liabilities according to substantially enacted tax rates (and tax laws). Deferred income tax assets and liabilities cannot be discounted.
The company has the right to offset current income tax assets and liabilities. We can offset income tax assets and liabilities according to tax law.
42
(20)
.
1)
,
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2)
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3.
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.
.
(1)
.
.
(2)
.
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43
An entity shall present in the statement of comprehensive income basic and diluted earnings per share for profit or loss from continuing operations and current profit or loss attributable to the ordinary equity holders for the purpose of calculations.
1) Basic Earnings Per Share
Basic earnings per share shall be calculated by dividing current net profits of ordinary equity holders by the weighted average number of ordinary shares outstanding during the period. The amounts of basic earnings per share shall be the amounts in profit
or loss from continuing operations and current profit or loss, adjusted for the after-tax amounts of preference dividends, differences arising on the settlement of preference shares, and other similar effects.
2) Diluted earnings per share
For the purpose of calculating diluted earnings per share, an entity shall adjust profit or loss and the weighted average number of shares outstanding, for the effects of all dilutive potential ordinary.
Disclosures of the application process of accounting policies, in particular, judgments and future assumptions made by the management team that could have apparent influence on consolidated financial statements, and uncertainty of important adjustments
that are related could affect the book value of assets and liabilities of the next accounting period are as follows.
In order to determine whether the goodwill is impaired, we need to deduce the present value of the cash-generating unit allocating the goodwill. We need to formulate the discount rate, which is based on the expected and present values of the future cash
flow produced from the cash-generating unit.
(3) Fair value of financial instruments
If the financial product is not marketable, we will use the evaluation method to appraise it. There are several evaluation methods, such as using recent transactions with parties equipped with reasonable judgment and trading consciousness, referring to the
fair value of other financial products which are essentially the same, the cash flow discount method, options pricing model and so on. With the group company periodically adjusting evaluation method, we use the observable market transaction price and base
our deductions on the observable market information to assess the appropriateness of the methods and above evaluation hypothesis.
(4) Provisions
The company recognizes the expected value of sales returns in liabilities. This kind of liability is predicted based on the past experience rate.
44
10,071,947
34,685,001
10,194,465
54,951,413
4.
(1)
(2)
(3)
1)
1,305,760
1,305,760
826,128
5,555,886
184,936,669
191,318,683
10,071,947
34,685,001
10,194,465
1,305,760
56,257,173
826,128
5,555,886
184,936,669
191,318,683
2,989,439
252,078
29,789,827
7,839,080
40,870,424
1,503,033
1,503,033
64,388,288
20,770,803
87,707,004
172,866,095
5,582,500
5,582,500
( : )
2,989,439
252,078
29,789,827
7,839,080
7,085,533
47,955,957
( : )
64,388,288
20,770,803
87,707,004
172,866,095
, ()
( )
45
4. T h e f a i r v a l u e a n d c l a s s i f i c a t i o n o f f i n a n c i a l i n s t r u m e n t s
Current period
10,071,947
7,839,080
29,789,827
252,078
2,989,439
5,582,500
5,582,500
1,503,033
1,503,033
47,955,957
7,085,533
7,839,080
29,789,827
252,078
2,989,439
sum
34,685,001
Loans
and
Receiva
bles
10,194,465
40,870,424
sum
10,071,947
-
1,305,760
Financial
assets
Available
-for-sale
56,257,173
Financial
assets
Taking
the fair
value into
the
current
profit and
loss
34,685,001
-
1,305,760
1,305,760
Last period
Financia
l assets
Takin
Financial
g the
assets
fair
value
Available-f
or-sale
into the
current
profit
and
loss
10,194,465
(Unit:KRW 000)
20,770,803
64,388,288
sum
64,388,288
Financial
liabilities
Measured at
amortized
cost
Last period
sum
54,951,413
Loans
and
Receiva
bles
Items
Current period
Financial
liabilities
Measured at
amortized
cost
20,770,803
Financial
liabilities
Taking the
fair value into
the current
profit and
loss
-
826,128
5,555,886
826,128
5,555,886
87,707,004
172,866,095
184,936,669
191,318,683
87,707,004
172,866,095
184,936,669
191,318,683
Financial
liabilities
Taking the
fair value into
the current
profit and
loss
Items
Trades payable
Other debt
payments
Loans
sum
(3) Financial instruments measured by fair value
level 1
Significance of inputs
level 2
Items
level 3
46
2)
. , , , ,
, .
. 1 . 1 KOSPI , KOSDAQ
.
. .
1,305,760
1,305,760
( : )
1,305,760
1,503,033
3 .
, 2 .
.
-
-
-
3)
. .
<>
<>
( : )
1,503,033
5,582,500
5,582,500
5,582,500
1,503,033
5,582,500
7,085,533
1,503,033
7,085,533
47
For the fair values of financial assets which are not traded on an active market, their values are decided by valuation techniques. Such valuation techniques maximize the use of observable market information and minimize the use of firm-specific
information. At this time, if all significant input variables of financial instruments measured at fair values can be observed, the relevant financial instruments will be included.
If one or more important input value based on market data are unobservable, the relevant financial instruments will be included in hierarchy level 3.
The valuation techniques used to measure the fair value of financial instruments are as follows.
Published market prices or dealer price of similar products
The fair values of interest rate swaps are measured using the present value of estimated future cash flows based on the observable yield curves
Carrying amount
1,305,760
Subtotal
1,305,760
level1
Fair value
level2
(Unit:KRW 000)
level3
1,305,760
(Unit:KRW 000)
level3
1,503,033
level2
5,582,500
1,503,033
Fair value
5,582,500
level1
5,582,500
1,503,033
5,582,500
Subtotal
1,503,033
7,085,533
Carrying amount
7,085,533
The fair values of forward exchange are measured using the forward rate at the end of the reporting period to discount relevant amounts into present value.
The fair values of other financial instruments are measured using other techniques such as discounted cash flow technique.
2) Different hierarchies of the fair value
Items
A. Fair value hierarchy classifications of the financial instruments that are measured at fair value are
as follows.
The end of the current period
Assets
Items
available-for-sale financial
assets
Assets
Financial assetsTaking the fair
value into the current profit and
loss
Available-for-sale financial
assets
sum
48
1,503,033
97,943
. 3 .
4)
295,216
( : )
1,305,760
( : )
15,706,691
14,065,429
11,870,936
-
11,373,580
54,201,297
54,196,903
( : )
.
(4)
<>
( 2)
414,489
( 1)
(24,555)
824,159
(3,459,815)
83,625
(3,459,815)
355,419
(2,221,167)
(24,555)
(1,443,639)
824,159
(1,443,639)
(2,552,031)
2,195
2,195
(2,314)
(2,314)
355,419
() + () + ()
(1,443,520)
() + ()
(1,443,520)
( 1)
( 2)
49
97,943
Acquisition
295,216
Disposal
B. Changes in fair values that are recognized in hierarchy 3 during the current period are as follows:
Foundation
1,503,033
1,305,760
(Unit:KRW 000)
Current period
Last period
(Unit:KRW 000)
The book values and carrying amounts of financial instruments which are not measured at fair value in the subsequent periods
Items
Financial
assets
Available-for-sale
1)
Current period
14,065,429
-
15,706,691
Fair value
11,870,936
Carrying amount
54,201,297
Fair value
11,373,580
Carrying amount
54,196,903
Items
Convertible bonds
Borrowings
Management has determined that, except for the items disclosed in the table above, the carrying amounts of financial assets and financial liabilities valued at amortized cost are similar to the fair values recognized
in the financial statements.
(4) Net profits or losses for different financial instruments
Current period
(2,552,031)
824,159
(3,459,815)
83,625
(24,555)
(24,555)
(2,221,167)
824,159
(3,459,815)
414,489
Sum
(Unit:KRW 000)
Valuation (week 2)
355,419
(1,443,639)
2,195
(1,443,639)
Dividend Income
355,419
(2,314)
2,195
Interest income
(2,314)
Items
(1,443,520)
Financial assets
(1,443,520)
Financial liabilities
Sum
Sum
(Note 2) Foreign currency translation gains (losses) + financial assets gains (losses)
(Note 1) Foreign exchange gains (losses) + trading profit (loss) + financial asset impairment losses (reversals)
50
<>
( 2)
( : )
320,197
( 1)
201,563
(107,523)
271,924
(109,410)
391,570
(231,633)
537,130
41,626
(819,818)
793,684
(819,818)
67,346
284,047
67,346
271,924
(69,119)
41,626
(887,164)
537,130
(887,164)
5.
.
.
( : )
944,300
1,563,064
552,264
6,093,779
( : )
2,507,364
6,646,043
6.
672,696
2,316,743
8,816,140
1,255,807
2,989,439
10,071,947
51
537,130
41,626
(69,119)
271,924
(231,633)
(109,410)
284,047
391,570
(107,523)
Valuation ( Note
(819,818)
793,684
271,924
201,563
320,197
Last period
41,626
67,346
(819,818)
Sum
Available-for-sale financial
assets
Financial liabilities
Sum
537,130
67,346
Dividend Income
Sum
Interest income
(887,164)
-
Items
(887,164)
Financial assets
The Company has collected accounts receivable by transferring some of the account receivables to others or by giving discounts. When recovering at the end of current period, accounts receivable that are transferable or discounted with recourse are
not removed from the balance sheet, but recognized in short-term borrowing and account payables.
Last period
(Unit:KRW 000)
Details of discounting of financial institutions and endorsement of other customers in unfulfilled due accounts receivable are as follows.
Current period
944,300
1,563,064
Items
552,264
6,093,779
2,507,364
(Unit:KRW 000)
2,989,439
672,696
2,316,743
1,255,807
Last period
10,071,947
8,816,140
6,646,043
Current period
Items
Savings Account
Foreign Currency Savings
Sum
52
7.
8.
37,308,106
(2,623,105)
252,078
( : )
( : )
34,685,001
30,989,391
(1,199,564)
29,789,827
36,367,434
6,577,607
78,126
29,006
78,126
(6,354,228)
(5,154,664)
6,470,475
11,732,271
(616,989)
108,136
42,721,662
(5,261)
1,261,472
1,261,472
(4,537,675)
5,893,669
(147,524)
1,261,472
645,995
40,578,670
5,261
(152,785)
37,628,906
11,008,150
(5,000,507)
1,408,996
(152,785)
2,795
108,136
(7,623,612)
2,999,943
1,414,257
(6,507,013)
5,782,738
10,894,176
1,300,852
1,414,257
(518,891)
48,202,282
(100,671)
4,300,795
44,135,919
(4,481,616)
100,671
(147,524)
4,300,795
521,686
2,999,943
(248,195)
44,879,465
10,264,354
1,448,376
(248,195)
4,548,990
(7,871,807)
4,548,990
52,751,272
(1) .
53
Items
Flow
Current period
Current period
(Unit:KRW 000)
Total debt
252,078
Last period
Carrying amount
Last period
Carrying amount
29,789,827
Total debt
(1,199,564)
78,126
30,989,391
6,577,607
34,685,001
36,367,434
(2,623,105)
37,308,106
78,126
(6,354,228)
(5,154,664)
29,006
108,136
42,721,662
11,732,271
(5,261)
1,261,472
1,261,472
6,470,475
5,893,669
(147,524)
1,261,472
(616,989)
40,578,670
5,261
(152,785)
37,628,906
(4,537,675)
1,408,996
(152,785)
645,995
(5,000,507)
2,999,943
1,414,257
(6,507,013)
11,008,150
108,136
(7,623,612)
1,300,852
1,414,257
2,795
48,202,282
10,894,176
(100,671)
4,300,795
44,135,919
5,782,738
Accrued income
100,671
(147,524)
4,300,795
(518,891)
Subtotal
2,999,943
(248,195)
44,879,465
(4,481,616)
Sum
1,448,376
(248,195)
521,686
Dishonored bill
4,548,990
(7,871,807)
10,264,354
Long-term loans
4,548,990
Other receivables
Deposit
Subtotal
52,751,272
Accounts receivable
loans
Other receivables
Accounts Receivable
Items
Current
Non-curr
ent
Sum
Sum
54
( : )
2,554
1,146,245
19,568,037
2,359,993
2,359,993
9,400,260
7,721,470
2,370,447
93,947
2,276,500
5,351,023
100,671
7,989,534
5,000,748
519,132
4,481,616
2,988,786
1,448,376
2,999,943
100,671
48,202,282
10,894,176
108,136
521,686
10,264,354
37,308,106
14,189
11,760,253
1,162,988
669,922
6 ~
1
20,731,025
748,454
2,999,943
3 ~
6
30,000
3,748,397
3,748,397
770,593
770,593
4,548,990
4,548,990
52,751,272
8,760,127
30,000
11,469,867
30,000
11,760,253
20,761,025
( : )
6,979,912
70,336
2,457,700
3,797,988
10,071,127
9,167,439
616,989
8,550,450
903,688
42,721,662
11,732,271
78,126
645,995
11,008,150
30,989,39
19,307,803
2,528,036
3,731
6,326,024
6 ~
1
29,006
3,731
3 ~
6
4,059
6,983,643
33,065
19,340,868
(2) .
<>
<>
55
(Unit:KRW 000)
14,189
2,554
1,146,245
19,568,037
2,359,993
2,359,993
9,400,260
7,721,470
2,370,447
93,947
2,276,500
5,351,023
100,671
7,989,534
5,000,748
519,132
4,481,616
2,988,786
1,448,376
2,999,943
100,671
48,202,282
10,894,176
108,136
521,686
10,264,354
37,308,106
Sum
1,162,988
11,760,253
669,922
More than 1
year
20,731,025
748,454
2,999,943
6 months ~
1 year
Accrued income
3 ~
6months
Subtotal
3 months or less
Dishonored bills
30,000
Sum
Subtotal
30,000
30,000
11,760,253
11,469,867
3,748,397
3,748,397
8,760,127
770,593
770,593
4,548,99
4,548,990
52,751,272
20,761,025
Deposits
Other receivables
Sum
Accounts
receivable
Loans
Other receivables
Long-term loans
Accounts
Receivable
Items
Current
Non-curr
ent
Sum
(Unit:KRW 000)
6,979,912
2,457,700
3,797,988
9,167,439
616,989
8,550,450
903,688
42,721,662
11,732,271
78,126
645,995
11,008,150
30,989,39
Sum
70,336
10,071,127
19,307,803
2,528,036
6 months ~
1 year
3,731
6,326,024
3 ~
6months
29,006
3,731
3 months or less
4,059
6,983,643
Accounts Receivable
33,065
Accounts receivable
Loans
Other receivables
Accrued income
19,340,868
Items
Current
Subtotal
Sum
56
<>
56,000
56,000
56,000
51,000
51,000
51,000
21,000
21,000
21,000
1,286,257
1,286,257
1,280,996
5,261
44,135,919
1,414,257
1,414,257
1,408,996
5,261
11,357,384
6,347,024
2,623,105
( : )
7,034,643
19,396,868
4,481,616
1,423,541
(56,059)
1,199,564
7,623,612
4,537,675
100,671
(154,157)
147,524
518,891
248,195
5,000,507
248,195
(98,098)
1,423,541
7,871,807
(154,157)
6,354,228
95,410
5,261
95,410
(154,157)
147,524
95,410
616,989
152,785
1,518,951
5,154,664
152,785
6,507,013
(3) .
57
Noncurrent
56,000
56,000
56,000
51,000
51,000
51,000
6,347,024
21,000
21,000
21,000
11,357,384
1,286,257
1,286,257
1,280,996
5,261
44,135,919
1,414,257
1,414,257
1,408,996
5,261
Other receivables
Subtotal
7,034,643
Dishonored bills
Sum
19,396,868
Deposits
Sum
5,154,664
616,989
4,537,675
1,199,564
95,410
1,423,541
1,423,541
(154,157)
(154,157)
(98,098)
(56,059)
7,871,807
248,195
248,195
147,524
100,671
7,623,612
5,000,507
518,891
4,481,616
2,623,105
Deposit
Dishonored bills
Other receivables
Accounts receivable
Loans
(Unit:KRW 000)
6,354,228
5,261
95,410
(154,157)
Increase/Decrease
147,524
95,410
Liquidation
Subtotal
152,785
1,518,951
Sum
152,785
Accounts Receivable
Subtotal
6,507,013
Other receivables
Sum
Items
Current
Non-curr
ent
current
sum
58
<>
( : )
4,120,089
462,244
616,989
417,586
776,801
(39,481)
5,261
6,354,228
5,154,664
616,989
4,537,675
1,199,564
1,034,575
(39,481)
(1,598)
147,524
4,120,089
1,811,376
152,785
4,582,333
(1,598)
152,785
6,859
72,524
-
(1,598)
75,000
72,524
81,859
72,524
81,859
6,507,013
(1,598)
5,582,500
( : )
(39,481)
1,883,900
1,503,033
()
5,582,500
391,570
()
( : )
4,664,192
9.
7,085,533
5,190,930
1,305,760
1,503,033
1,305,760
1,305,760
(1) .
(2) .
59
Last period
Current
Noncurrent
Items
(Unit:KRW 000)
417,586
-
6,354,228
5,154,664
616,989
4,537,675
1,199,564
4,120,089
616,989
-
5,261
1,034,575
(39,481)
(1,598)
147,524
Increase/Decrease
4,120,089
1,811,376
152,785
(39,481)
removal
4,582,333
(1,598)
776,801
Liquidation
6,859
72,524
-
462,244
75,000
72,524
152,785
Accounts
Receivable
Other receivables
Accounts
receivable
Subtotal
Loans
Sum
81,859
(1,598)
Deposit
Dishonored bill
Other receivables
Subtotal
-
6,507,013
1,305,760
7,085,533
1,503,033
1,503,033
5,582,500
5,582,500
Fair value /
book value
Last period
1,305,760
Gains (losses)
Acquisition
cost
Last period
(Unit:KRW 000th
(1,598)
72,524
Current period
Fair value /
book value
5,190,930
1,305,760
Current period
(39,481)
81,859
Acquisition
cost
391,570
Gains (losses)
(Unit:KRW 000an
1,883,900
Sum
sum
9. Other financial assets
Subtotal
Available-for-sale Financial
assets
Items
Current
Non-current
Sum
Invested
company
Tera resource
(2) Details of financial assets at fair value through profits or losses are as follows.
Items
Listed
securities
60
(3) .
1)
( : )
1,000,000
1,000,000
1,000,000
295,216
( 4)
207,817
1,000,000
-
207,817
12.99%
217,952
200,000
556,000
1.65%
111,200
( 1)
(,) ( 2)
1,503,033
1,305,760
97,943
97,943
1,315,895
1,000,000
1.26%
97,943
1.96%
200,000
( 1) , 295,216 824,159 .
( 2) .
( 3) .
( : )
( 4) .
2)
900,000
660,000
1,410,974
900,000
510,974
2010.12.18
1,560,000
()
2010.04.01
()
() , .
61
Current period
(Unit:KRW 000)
Last period
1,000,000
1,000,000
207,817
295,216
1,000,000
Book value
1,000,000
-
207,817
Book value
12.99%
217,952
Fair value
(Note 4)
200,000
556,000
Acquisition cost
1.65%
Ownership
111,200
97,943
1,503,033
97,943
1,305,760
1,000,000
97,943
1,315,895
1.96%
1.26%
2,653,943
200,000
Number of shares
Items
Ka Gyeong Development-Oriented Real Esta
te Investment Trust INC
Bio infra(note1)
YTN DMB
Winnerstudy(acstudy)(Note 2)
Alm Pharm Invest, LLP (Note 3)
Sum
Shares of the investee held by the company have been fully disposed in the current period. The book value of the relevant shares when disposed is 295.216 million (KRW), the confirmed amount of profit and loss is KRW 824.159 million.
Because of the capital encroachment of the investee, our company has drawn the full provisions of the asset impairment before the purchase.
Last period
(Unit:KRW 000)
New additions are switched from bonds into stock in the current period.
The amount of money is calculated by the assessments of the external and independent institutions based on professional judgment and reasonable determination value assessment model.
Current period
Face Value
Carrying amount
Carrying amount
900,000
660,000
1,410,974
Fair value
900,000
510,974
2010.12.18
1,560,000
Income amount
2010.04.01
Time
Items
Testech
Opes
Sum
The invested company delisted from the KOSDAQ market before the early term. Because of the insufficient capacity of solvency, we access that the possibility of recovering principal and interest is very low. And we will draw the full provisions of the asset
impairment in the last period.
62
10.
.
75,491,008
(8,030)
(47,823)
1,454,342
1,783,256
75,491,008
1,792,401
2,537,244
77,861,030
(12,729)
(25,577)
(114,954)
138,731
81,630
291,728
1,766,824
2,422,290
77,861,030
( : )
1,831,079
304,457
(8,719)
1,809,854
6,538,189
33,291,783
22,240,000
11,051,783
1,462,372
214,492
90,349
-
84,372,086
(9,110)
81,226
138,731
-
223,602
(5,129)
236,901
(161,979)
86,355
1,809,854
236,901
84,534,066
868,085
80,129,310
(70,092)
80,199,402
868,085
11.
( : )
4,874,489
162,160
5,907,656
5,416,184
339,114
782,891
19,460,000
107,478
25,998,189
()
1,000,000
173,934
12. 31.
( : )
100%
12. 31
100%
() ( 32 ).
869,670
1,899,200
12.
(1)
63
10. Inventory
Valuation
ll
Current period
Book value
Details of inventory evaluated at low cost and net realizable value are as follows
Items
Acquisition cost
Last period
75,491,008
Acquisition Valuation
t
ll
77,861,030
75,491,008
Goods
(Unit:KRW 000)
Book value
2,422,290
77,861,030
1,766,824
(25,577)
(114,954)
81,630
291,728
2,537,244
(12,729)
138,731
1,792,401
(8,719)
1,809,854
1,783,256
304,457
-
84,372,086
1,454,342
90,349
-
(8,030)
214,492
138,731
(161,979)
(47,823)
(9,110)
81,226
1,809,854
1,831,079
223,602
(5,129)
236,901
84,534,066
1,462,372
86,355
868,085
Products
236,901
80,129,310
(70,092)
80,199,402
868,085
Ingredients
Substitute
t i l
Supplies
Goods in transit
Semi-manufacture
s
Sum
11. Other assets
(Unit:KRW 000)
339,114
5,416,184
5,907,656
162,160
4,874,489
Last period
Advance payments
782,891
Current period
Prepaid expenses
6,538,189
33,291,783
22,240,000
11,051,783
107,478
19,460,000
Subtotal
25,998,189
Sum
Prepayments (Note)
Items
Flow
Non-current
capital
Share
Investment
1,000,000
100%
100%
Ownership
Sectors
l
o
c
USA
a
Location
tRepublic of Korea
i
o
n
Cost method
Cost method
Measured by
12. 31
Non-current prepayments is the money paid to Celltrion Healthcare to assure the exclusive rights of the Bio-similar product in Korea. ( With reference to note 32)
12. Investment of the subsidiaries
Company Name
1,899,200
173,934
869,670
Celltrion Chemical
Laboratory
64
(2) .
( : )
803,368
803,368
7,301,906
6,498,538
300,972
7,301,906
6,498,538
1,899,200
4,268,495
3,967,523
8,573,814
( : )
525,932
4,496,720
464,538
(53,112)
464,538
(56,457)
6,674,614
300,972
4,493,455
(3) .
13.
( : )
(3,946,081)
118,816,402
86,957,658
2,070,618
75,900
8,987,444
20,724,782
114,870,321
86,957,658
31,553,508
927,575
(1,296,585)
(1,143,043)
28,277,997
149,491,137
(4,630,179)
24,707
(998)
166,615
(1,213,610)
-
144,860,958
(51,193)
-
114,022,045
-
6,478,718
(35)
119
(319,570)
114,022,045
(2,508,726)
(265,253)
1,042,834
(15,158)
773,741
2,232,783
(1,459,042)
(243,119)
340,025
(789,435)
9,514
75,790
(66,276)
20,481,663
873,466
(172,422)
6,806,889
9,496,209
(2,689,320)
23,664,310
(415,541)
(266,286)
23,248,769
2,066,062
(1) .
<>
65
803,368
Last period
6,498,538
Current period
The total acquisition
cost
300,972
7,301,906
6,498,538
Carrying amount
1,899,200
4,268,495
3,967,523
Carrying amount
6,674,614
Company Name
Sum
(Unit:KRW 000)
-
464,538
(53,112)
464,538
(56,457)
Total
4,496,720
Profit or loss
Sales
525,932
Total liabilities
300,972
(U nit:K RW 000)
4,493,455
Total assets
(3) The brief financial information by the end of this accounting year of the subsidiary is as follows
Comp
Celltrion Pharma USA, Inc.
Celltrion Chemical Laboratory
Current period
(3,946,081)
118,816,402
Sum
86,957,658
Assets under
(1,143,043)
2,070,618
Fixtures
(51,193)
75,900
Vehicl es
(2,508,726)
8,987,444
Machinery and
(243,119)
20,724,782
Land and
Accumulated
depreci atio n
144,860,958
(4,630,179)
149,491,137
(1,296,585)
(266,286)
31,553,508
114,022,045
114,022,045
(1,213,610)
114,870,321
(998)
86,957,658
119
28,277,997
(35)
(319,570)
927,575
166,615
(265,253)
(15,158)
340,025
24,707
(789,435)
2,232,783
6,478,718
873,466
75,790
(1,459,042)
1,042,834
(172,422)
9,496,209
(66,276)
773,741
2,066,062
23,664,310
(2,689,320)
9,514
20,481,663
(415,541)
6,806,889
Acquisition
cost
23,248,769
Book val ue
Acquisition
cost
Items
The
beginni ng
of this
year
Acquisition
Disposal
Replaced
Depreciation
The end of
this year
Book val ue
Accumulated
depreci atio n
66
<>
76,376
1,793,529
( : )
51,117,664
5,810,975
23,531,374
19,905,410
48,274,183
(2,843,481)
(8,061)
67,715,845
23,531,374
63,426,284
(1,111,646)
932,645
118,816,402
(860,884)
289,170
40,133
(5,783)
86,957,658
(36,243)
(288,457)
(3,946,081)
4,019,481
3,181,019
(206)
2,070,618
114,870,321
(1,791,494)
(2,072)
75,900
(15,220)
(154,860)
(719,710)
86,957,658
19,750,550
8,987,444
927,575
(1,143,043)
819,372
(88,259)
24,707
(51,193)
20,724,782
6,478,718
(2,508,726)
( : )
(243,119)
9,381.00
()
922,206
543,448
( : )
649,327
897,872
20,481,663
(2) .
83,062.00
()
588-2
( 2 )
() .
(3) .
26,926
51,703
213,551
170,139
188,154
1,111,646
165,931
399,052
1,296,585
67
Last perio d
The
beginni n
g of this
year
(U nit:K RW 000)
51,117,664
Sum
23,531,374
Fixtures
1,793,529
Vehicl es
76,376
(2,843,481)
Assets under
co nstruction
19,905,410
-
Machinery and
plant equi pment
Acquisition
cost
(860,884)
(8,061)
67,715,845
(36,243)
63,426,284
(1,111,646)
(1,791,494)
(154,860)
289,170
48,274,183
(5,783)
23,531,374
(288,457)
932,645
(206)
(3,946,081)
118,816,402
40,133
3,181,019
(15,220)
86,957,658
4,019,481
(2,072)
2,070,618
19,750,550
819,372
(719,710)
75,900
86,957,658
Book val ue
(88,259)
8,987,444
927,575
(1,143,043)
20,724,782
24,707
(51,193)
922,206
(shares)
897,872
Last perio d
114,870,321
6,478,718
649,327
(U nit:K RW 000)
Last perio d
(U nit:K RW 000)
(2,508,726)
9,381.00
83,062.00
543,448
26,926
51,703
213,551
170,139
188,154
1,111,646
165,931
Current period
Current period
(243,119)
Purpose
Paper facto ry
Paper facto ry
Area ()
20,481,663
Accumulated
depreci atio n
Items
Acquisition
Disposal
Acquisition
cost
Accumulated
depreci atio n
Book val ue
Depreciation
The end
of last
year
Locatio n
Chungbuk Jincheon yiwolmyeon Sagokri 588-2 et
Cheongwon-gun, Chungbuk ohchangeup juseongri
(quintet second industrial park)
Items
The land price has not gone to publicity because the code is not confirmed
(3) The amounts of items including depreciation expense of tangible assets are as follows
Cost o f selli ng
Selli ng and adminis trative ex pens es
399,052
1,296,585
68
(4)
6,484,411
6,484,411
4,679,975
4,679,975
( : )
2 .
4,679,975
4,679,975
6,484,411
6,484,411
280,841
12,721,969
4,510,629
1,800,000
LIG
( : )
4,401,400
6,411,340
11,678,838
6,996,597
(5) .
, , .
( : )
(608,388)
37,994,421
-
(4,644)
7,808,937
(6) ( ) ( 33 )
22,188
()
1,127,069
(15,903)
14.
(1) .
<>
(592,485)
1,434,773
-
27,601,454
-
37,381,389
(4,644)
7,808,937
6,285
529,940
5,184,206
-
5,035,923
-
148,283
1,434,773
27,601,454
69
4,510,629
1,800,000
6,484,411
6,484,411
Current period
LIG Insurance
Outside
Insurance
(Unit:KRW 000)
Interest expense
decreased
Accounts
4,679,975
4,679,975
Last period
Last period
6,484,411
4,679,975
Current period
Accounts
Increase in assets
280,841
12,721,969
6,411,340
Amount insured
4,401,400
6,996,597
Carrying amount
Factory buildings
Insured property
Insurance
Fire insurance
Inventories
Sum
On the other hand, in addition to the above insurance, the company also added the products liability insurance and insurance for the construction of a new factory, as well as the automobile liability insurance and comprehensive insurance related to the group
companys transportation vehicle.
22,188
Industrial Property
1,127,069
(15,903)
Software
(592,485)
Membership
1,434,773
-
Development
(Unit:KRW 000)
Total
37,994,421
(608,388)
7,808,937
-
(4,644)
37,381,389
7,808,937
6,285
529,940
5,184,206
-
5,035,923
(4,644)
148,283
27,601,454
Goodwill
(6)From the end of this accounting year to the present, the company will take the land and buildings related to the loan contract of the financial institutions (plant in Jincheon-gun Chungcheongbuk-do) as collateral
(see note 33)
Items
Acquisition cost
Accumulated
The beginning
amortization
of the
year
Government grants
1,434,773
27,601,454
Acquisition
Book value
Disposal
70
(274,234)
(176,693)
-
(2,231)
-
(274,234)
(178,924)
(1,064,479)
22,188
-
1,275,352
(18,134)
(1,711)
43,178,627
1,434,773
(772,111)
12,844,860
(274,234)
-
27,601,454
-
4,054
/
(1,711)
501,530
( : )
(7,578)
(465,897)
17,398
42,112,437
12,844,860
1,160,539
27,601,454
() .
<>
876,308
(13,937)
29,929,211
(7,578)
(451,960)
1,434,051
27,601,454
-
29,455,736
3,461
416,770
27,601,454
8,065,210
1,434,051
7,808,937
4,790
(139,557)
250,761
722
(608,388)
37,994,421
(1,966)
7,808,937
529,940
(4,644)
6,285
7,808,937
37,381,389
(4,644)
(137,591)
22,188
(15,903)
(592,485)
1,127,069
1,434,773
1,434,773
27,601,454
27,601,454
71
Amortization
-
(274,234)
(176,693)
-
(2,231)
-
(274,234)
(178,924)
(1,064,479)
43,178,627
1,275,352
(18,134)
12,844,860
1,434,773
(772,111)
(1,711)
27,601,454
(274,234)
-
Acquisition cost
-
42,112,437
(1,711)
12,844,860
4,054
501,530
(Unit:KRW 000)
1,434,051
416,770
(7,578)
(451,960)
876,308
4,790
3,461
(13,937)
17,398
7,808,937
(139,557)
8,065,210
(7,578)
(465,897)
Total
27,601,454
250,761
(1,966)
Industrial Property
1,434,051
Software
722
(137,591)
37,994,421
Membership
27,601,454
7,808,937
(608,388)
Goodwill
22,188
(4,644)
29,929,211
1,127,069
(15,903)
37,381,389
Development
1,160,539
Accumulated
amortization
/ impairment
27,601,454
Government grants
Book value
current perio d
Items
In consideration of recoverable money of Membership Card in this term, some impairment losses are recognized.
1,434,773
(592,485)
7,808,937
29,455,736
Acquisition
27,601,454
(4,644)
6,285
Disposal
529,940
Acquisition cost
The
beginning of Accumulated amortization /
Impairment
the current
accounting Government grants
year
Book value
Amortization
1,434,773
Acquisition cost
27,601,454
Book value
72
( : )
136,675
172,733
963
(2) .
155
1,764
147
4,434
1,610
178,924
139,557
(3)
() .
.
1) : ( ) .
2) : 2013 5 .
4) : (6.46%) .
3) : .
4,645
464,000
(2,934)
1,711
( : )
( : )
,
.
15.
(1) .
(2) .
<>
( )
73
(2)Items and amount including depreciation expense of intangible assets are as follows
Cost of selling
Items
Selling and administrative expenses
4,434
147
172,733
155
1,764
963
136,675
(Unit:KRW 000)
Last period
Current period
139,557
Total
Development
(3) Details about whether an impairment loss for goodwill should be recognized shall be reviewed.
In order to check whether the amount of goodwill is reduced, the calculated use value (recoverable amount) is the use valule of the cash income generation unit, based on the use value of the continuous use of discounted cash flow in the future. Calculation
on the use value is based on the following key assumptions
Cash flow: presume the cash flow based on the past experience, actual operating outcomes and the five-year operating plan from 2013.
Growth rate: based on the scale and market share of those products that are under development and listing plan, we evaluate the growth rate in order to reflect the expected sales volume.
Cash generating unit: we regard all those companies that has no independent capacity for generating cash, including the subsidiary, as a cash-generating unit.
Discount rate: applicable to assume the weighted average cost of capital (weighted average cost of capital) (6.46%).
1)
3)
2)
4)
Current period
Increase
464,000
Last period
(2,934)
Decrease
Processing costs
deducted
Accounting
treatment
1,711
( Unit:KRW 000)
( Unit:KRW 000)
By comparing the book value (including goodwill) of the cash generating unit with the calculated use value in the last period, the result comes out after the impairment test that the book value of the cash generating unit does not exceed the recoverable
amount.The impairment shall not be recognized.
(1) The accounting treatment for the government grants are as follows:
Division
Industry led by Chungcheong Economic Region
4,645
Items
74
<>
( )
7,578
826,128
(2,933)
64,388,288
( : )
20,770,803
26,906
457,945
6,527
20,285,952
5,555,886
2,469,175
85,159,091
3,080,184
6,382,014
( : )
4,645
3,000,000
2,000,000
( : )
2,000,000
3,000,000
( 3)
16.
.
5.69%
5.06%
6,986,454
10,000,000
1,655,121
23,641,575
50,000,000
6,996,483
19,366,186
5.56%
50,000,000
5.60%
50,000,000
7,369,703
( 1)
6.90%
14,065,429
( 2)
11,373,580
4.00%
64,065,429
(1) .
17.
87,707,004
54,196,903
165,570,483
1.50%
184,936,669
75
<Last period>
Items
Government grants (Software
deducted)
Current
7,578
Decrease
(2,933)
(unit::KRW 000 )
64,388,288
Last period
826,128
20,285,952
Current period
3,080,184
26,906
457,945
Trade payables
Accounts Payable
6,527
2,469,175
Deposits
Subtotal
6,382,014
5,555,886
85,159,091
20,770,803
( Unit:KRW 000)
4,645
5.69%
5.06%
19,366,186
7,369,703
6,996,483
3,000,000
50,000,000
23,641,575
1,655,121
6,986,454
10,000,000
3,000,000
(unit::KRW 000 )
Exchange Bank
5.56%
50,000,000
Interest rate
Total
Accrued expenses
Items
17.Loans
Borrowing Sources
Industrial Bank
50,000,000
54,196,903
11,373,580
14,065,429
2,000,000
4.00%
Subtotal
Industrial Bank
6.90%
5.60%
Domestic Bank
Celltrion (Note2)
1.50%
64,065,429
Celltrion
87,707,004
165,570,483
Convertible bonds
Subtotal
184,936,669
Working Capital
Working capital
Financing facilities
History
Items
Current
Non-current
Total
76
( 1) 2 9 3 3 .
( 2) 2 .
4.00
(%)
11.00
(%)
( : )
5,108,863
12,000,000
9,000,000
14,065,429
(3,043,434)
3,831,648
1) .
( 2) ( 13,32,33 ).
2015-08-16
(2)
2010-08-17
11,373,580
(1,458,068)
3 ()
100%
( : )
() 30 .
2) .
11,624
1 ~
(%)
(3)
(%)
60,000,000
14,741,554
5.9
(20,544,651)
1.5
:
2018-12-18
54,196,903
2013-12-19
1) .
77
(Note 1)Status of the long-term loans of the financial sector: Condition of the extension in the 3 years 3 months in installments after 2 years and 9 months
(Note 2)Status of other non-current borrowing, condition of Lump sum payment that will expire in 2 years
(Note 3)The company can offer guarantee based on the payment guaranty of the related representative director and real estate, which are related with the loan agreement of the financial institutions. (see note 13,32,33).
Expiration
date
Issue date
12,000,000
Items
9,000,000
Guaranteed
interest rate
(%)
11.00
4.00
Nominal
Interest
rate(%)
5,108,863
2015-08-16
3,831,648
14,065,429
(3,043,434)
2010-08-17
Plus : repayment premiums
11,373,580
(1,458,068)
Difference of write-off
History
(unit::KRW 000 )
(Note)The conversion right can be exercised if the book value of the convertible bonds equals to 30 billion (KRW).
Items
2) The issue conditions of the convertible bonds in the last period are as follows.
Issue price
11,624 KRW
Nominal
Interest
rate(%)
One year after issue date ~ the business day before expire date
issue shares
Repayment method
Conversion rights
exercise period
Conversion price
(3) Bonds with attached warrant
Expiration date
Issue date
Items
60,000,000
5.9
1.5
2018-12-18
14,741,554
2013-12-19
54,196,903
(20,544,651)
Difference of write-off
78
100%
2)
10,650
1 ~
18.
( : )
91,926
54,246
451,718
505,964
91,926
19.
( : )
109,730
314,018
606,965
87,518
304,867
423,748
392,385
83,109
296,153
651,451
379,262
65,037
693,793
350,043
285,006
651,451
, .
79
2) Iss ue condi tions for bonds wi th attached warrants are as foll ows.
History
Items
Issue price
10,650 KRW
(unit::KRW 000 )
Last period
-
91,926
91,926
54,246
505,964
451,718
Current period
One year after issue date ~ the business day before expire date
Issue shares
Repayment method
Preemptive rights
exercise period
Conversion price
Total
Advance payment
Items
Current
19. Provision
Subtotal
Subtotal
Items
(unit::KRW 000 ))
87,518
304,867
423,748
109,730
314,018
606,965
Last period
392,385
379,262
83,109
651,451
296,153
350,043
65,037
693,793
285,006
651,451
Current period
Under the circumstance that the company allows returns, the provision induced by returns shall be estimated at the point of sale., the changes in estimated liabilities are as follows
Increase
Decrease
Total
80
20.
38,572
734,164
143,141
110,337
298,107
59,170
721,497
204,241
100,415
( : )
351,776
1,393,352
, 1 1
.
.
104,769
(1,199,367)
250,022
1,372,422
(1,539,534)
250,022
(44,378)
53,877
500
80,000,000
7,069,309
14,138,617
500
7,197,689
14,395,378
80,000,000
( : )
(29,033)
21.
(1) .
81
Current period
351,776
38,572
734,164
143,141
1,393,352
110,337
298,107
59,170
721,497
204,241
100,415
Last period
(unit: thousand)
The entity applies defined contribution plans to their employees. The amount of retirement benefits of those employees who work for more than one year shall be recognized as expenses in the period. The estimated amount of retirement benefits
of those who work for less than one year shall be recognized as retirement benefit liabilities.
The changes in the retirement benefit liabilities are as follows.
Category
104,769
(1,199,367)
250,022
1,372,422
Selling cost
(1,539,534)
250,022
(44,378)
Foundation
53,877
(29,033)
Subtotal
Development
Selling and
administrative expenses
Ordinary research and
Current operating costs development costs
Assets under
construction
Total
Retiree payments
500
80,000,000 shares
7,069,309
14,138,617 shares
500
7,197,689
14,395,378 shares
80,000,000 shares
Current period
Category
Pai d-i n capi tal
Par value per share
Shares issued
Common Stock
82
(2) .
( : , )
2012-12-31
2012-12-10
2012-08-13
2012-07-23
2012-05-25
2012-04-23
2012-01-01
85,587
14,138,617
14,138,617
1,271,186
254,237
9,555
13,664
298,700
12,291,275
42,794
42,793
42,793
7,069,309
7,069,309
635,593
127,119
4,777
6,832
149,350
6,145,638
133,096,125
1,180,075
1,178,730
1,172,092
129,565,228
129,565,228
16,869,141
3,287,292
132,089
160,556
4,164,102
104,952,048
2013-01-01
85,587
7,197,689
2013-07-03
85,587
2013-07-31
14,395,378
2013-08-06
2013-12-31
(1) .
22.
( : )
13,584,506
80,155
80,155
13,664,661
16,227,135
()
16,307,290
() 50% 10% .
83
Exercise of share
rights
2012-12-31
2012-12-10
2012-08-13
2012-07-23
2012-05-25
2012-04-23
2012-01-01
14,138,617
14,138,617
1,271,186
254,237
9,555
13,664
298,700
12,291,275
42,793
7,069,309
7,069,309
635,593
127,119
4,777
6,832
149,350
6,145,638
1,178,730
1,172,092
129,565,228
129,565,228
16,869,141
3,287,292
132,089
160,556
4,164,102
104,952,048
Share issue
premium
Exercise of
conversion rights
2013-01-01
85,587
42,793
1,180,075
Capital
Exercise of
conversion rights
2013-07-03
85,587
42,794
133,096,125
Outstanding shares
2013-07-31
85,587
7,197,689
Date
Category
Last period
Exercise of
conversion rights
2013-08-06
14,395,378
The beginning of
the last period
Exercise of share
rights
Exercise of
conversion rights
2013-12-31
Current period
Exercise of share
rights
(unit: thousand)
13,584,506
80,155
13,664,661
Last period
16,227,135
Current period
Category
16,307,290
80,155
Retained earnings
Total
(Note) In accordance with commercial laws, 10 percent of dividends of each settlement period shall be accumulated to be earned surplus reserve until it reaches 50 percent of the capital. Although earned surplus reserve cannot be distributed in cash, it can
be transferred to capital or used to cover the deficit in terms of the decision made by general meeting of stockholders.
84
2013 01 01
2014 03 24
13
2012 12 31
2012 01 01
( : )
13()
3,936,476,527
9,648,029,913
2013 03 25
16,277,134,954
16,277,134,954
14()
2,642,628,514
13,584,506,440
2013 12 31
(2)
14
(1) .
23.
( : )
13,584,506,440
13,584,506,440
3,955,386
(13,670)
(13,670)
3,955,386
()
426,554
1,586,045
426,554
(37,224)
1,867,410
(37,224)
4,615,928
10,814,384
5,917,091
() (1,311 ) 2009 8 5 .
(2)
1)
85
(2)
2013-01-01
to
from
2014-03-24
2013-12-31
NO.13 period
disposal date
2012-01-01
to
from
13,584,506,440
13,584,506,440
(13,670)
(unit: thousand)
Last period
3,936,476,527
9,648,029,913
NO.13 Period(last)
(Unit: Won)
2012-12-31
2013-03-25
16,277,134,954
16,277,134,954
NO.14 Period(current)
2,642,628,514
13,584,506,440
Category
Retained earnings
Unappropriated retained earnings carried
over from prior period
Net Income
Profit surplus
Retained earnings carried forward the
next issue
Current period
Category
3,955,386
(13,670)
3,955,386
426,554
1,586,045
1,867,410
(37,224)
5,917,091
(37,224)
10,814,384
4,615,928
share options
Capital changes using the equity method
The estimate of available-for-sale securities
consideration of stock warrants
Total
he ordinary shares (1,311 shares) are the add-lot stock after the combination at August 5, 2009.
In accordance with the solution found by general meeting of stockholders or council, those employees who have contributions or might have contributions to establishment, operation, business abroad or technique annovation shall be given share options.
Those given share options are as follows.
86
1 ()
2010 03 22
2011 03 25
2012 03 22
2013 03 25
17,350
2015 3 25 ~
2025 3 24
19,139
2014 3 22 ~
2024 3 21
2008 3 25
16,933
2013 3 25 ~
2023 3 24
2012 3 22 ~
2020 3 21
2010 3 25 ~
2015 3 24
11,185
( : , )
5,671
() 2009 .
2) .
<>
17,096
17,350
26,000
355,334
26,000
18,921
(20,500)
46,500
(2,500)
(18,000)
304,000
1,800
3,034
19,139
13,794
17,011
360,834
304,000
23,500
1,800
28,500
3,034
<>
( : , )
633,453
11,186
46,500
10,944
304,000
46,500
(2,700)
5
312,300
(321,919)
17,153
17,096
355,334
(2,700)
46,500
(307,800)
304,000
1,800
(14,119)
3,034
87
Equity-settled
2008-3-25
first
2012-3-22~
2020-3-21
Equity-settled
2010-03-22
third
16,933KRW
2013-3-25~
2023-3-24
2011-03-25
forth
19,139KRW
2014-3-22~
2024-3-21
2012-03-22
fifth
17,350KRW
2015-3-25~
2025-3-24
2013-03-25
sixth
Category
Payment method
2010-3-25~
2015-3-24
11,185KRW
Grant date
Event Period
5,671KRW
Serve more than two years after the grant date
Exercise price
Possible conditions
(Note) When the combination took place 2009, the share options given to the employees of combined juridical person- HanSeo Pharmacy shall be inherited with no changes in conditions.
46,500
26,000
(20,500)
26,000
355,334
18,921
17,350
17,096
Weighted average
Exercise price
304,000
(2,500)
Total
(18,000)
Sixth
1,800
Fifth
Quantity
3,034
Fouth
Third
First
1) The changes in exercisable amount and weighted average exercise price are as follows.
< Current period >
Category
Grant
Beginning of the
current period
Withdrawal / Lapsed
633,453
11,186
19,139
13,794
17,011
Exercise
360,834
304,000
23,500
1,800
46,500
10,944
Weighted average
Exercise price
46,500
(2,700)
17,096
Total
304,000
355,334
(321,919)
Fifth
28,500
3,034
Quantity
Fouth
312,300
46,500
Third
17,153
First
(2,700)
304,000
Category
Grant
1,800
(307,800)
Withdrawal / Lapsed
3,034
(14,119)
Exercise
The end of the last period
88
3
( Black Scholes Model)
3) .
17,350
2.58%
16,100
3.59%
19,139
52.69%
18,400
3.57%
16,933
52.98%
5,559
17,000
3.23%
11,185
2.38%
45.77%
5,428
11,400
0.64
5,671
58.50%
3,259
12,100
6,590
5,447
63.38%
( : )
4) .
2,755,917
388,528
85,234
95,045
281,364
394,673
19,393
38,353
434,129
89,141
104,627
350,175
50,351
1,841,881
8,296
534,165
8,385
164,534
489,163
36,309
3,520,854
2,392,899
( : )
24.
(1) .
6,255,036
37,387,634
5,300,891
40,516,378
64,631
1,000,295
4,242,616
44,707,596
50,083,248
23,363
89
Third
Fouth
Fifth
5,671won
12,100won
45.77%
2 years
3.23%
11,185won
11,400won
5,428won
52.98%
2 years
3.57%
16,933won
17,000won
5,559won
52.69%
2 years
3.59%
19,139won
18,400won
63.38%
2 years
2.58%
17,350won
16,100won
Sixth
Exercise price
0.64year
-
First
3) The method used to estimate the fair val ue of share options and ass umptions is as follow.
Category
Calculation method
Expected volatility
6,590won
5,447won
Fair value
4) The details o f the co mpensatio n cos t recognized as expenses in connection with s hare options granted are as follows.
(unit: thousand)
Total
388,528
Development
-
2,755,917
Assets under
construction
85,234
281,364
Selling cost
38,353
394,673
19,393
95,045
Category
350,175
434,129
89,141
3,520,854
1,841,881
8,296
50,351
104,627
Selling and
administrative
expenses
534,165
share options
(unit: thousand)
23,363
4,242,616
5,300,891
44,707,596
64,631
1,000,295
6,255,036
37,387,634
Last period
50,083,248
40,516,378
Current period
2,392,899
Compensation cost to be
recognized in the current
period
The total compensation cost
24. Business volume and selling cos ts
(1)the contents of sales are as follows.
Category
Sales of domestic product
inside the country
Sales of domestic product
inside the country
Sales of foreign purchased
productsinside the country
Sales of foreign purchased
products outside the country
Total
90
12,915,140
47,897
13,415,684
1,904,538
19,280
161,979
(115,786)
12,469,346
2,537,244
(2) .
(91,887)
(187,764)
(2,537,244)
33,820,351
44,600,000
104,656
77,861,030
(1,831,079)
2,469,717
47,648
600
721,497
7,445,572
( : )
(77,861,030)
15,384,857
(4,961)
8,029,918
(75,491,008)
734,164
25.
.
59,446
641,456
585,988
137,518
72,649
583,052
83,788
124,039
1,693,985
714,062
17,549
1,283,611
28,884
1,346,041
1,538,498
5,257
86,237
110,019
( : )
12,877,068
606,969
13,484,037
91
12,915,140
Last period
12,469,346
47,897
13,415,684
1,904,538
19,280
(115,786)
2,537,244
Current period
Category
Production cost
Basic Products
(187,764)
161,979
Product manufacturing
costs in current period
Transferred to other
accounts in the allocation
(91,887)
Transferred to other
accounts
Valuation loss
(2,537,244)
104,656
47,648
33,820,351
44,600,000
(1,831,079)
2,469,717
(4,961)
(77,861,030)
77,861,030
(75,491,008)
15,384,857
Final products
Selling cost
Basic Products
Purchases in current
d
Transferred to other
accounts in the allocation
Transferred to other
accounts
Final products
Total
7,445,572
721,497
600
Last period
8,029,918
734,164
-
83,788
1,693,985
Current period
Salary
Retirement Benefits
Sundry payment
28,884
1,538,498
Category
Employee benefits
Vehicle Maintenance
137,518
72,649
585,988
583,052
124,039
641,456
714,062
17,549
1,283,611
Entertainment
1,346,041
59,446
Communication costs
5,257
Consumables
Tax and Dues
86,237
Travel transportation
Water Utilities
110,019
Book printing
(unit: thousand)
12,877,068
606,969
13,484,037
92
701,485
1,222,789
86,250
946,960
1,229,180
82,793
6,515,965
176,646
1,518,951
165,931
23,731
19,160
29,062
136,675
86,048
5,443,533
258,341
775,203
170,138
26,336
7,234
39,300
1,469
816,521
160,662
359,700
3,103
172,733
852,074
381,005
17,485
269,303
23,310
272,779
606,735
24,008,782
162,994
25,799,539
2,907
26.
1,444,616
(476,794)
: )
( 2)
( 1)
914,346
3,845,114
1,222,789
8,513,646
12,510,022
782,704
856,043
1,516,590
3,149,879
1,229,180
7,320,780
13,156,605
606,969
903,115
956,140
6,422,048
875,266
2,131,004
4,027,893
882,259
1,972,676
2,469,717
1,441,930
39,623,824
3,575,612
42,626,325
( 1) .
93
Transportation costs
701,485
1,222,789
86,250
946,960
1,229,180
82,793
Premium
19,160
29,062
170,138
26,336
7,234
39,300
1,469
816,521
Power Ratio
23,731
775,203
3,103
852,074
Advertising expenses
Fees
Rent
sample fees
165,931
258,341
Repairs
Depreciation
176,646
1,518,951
136,675
86,048
359,700
5,443,533
172,733
160,662
381,005
6,515,965
17,485
269,303
Sales commission
Conference expenses
23,310
272,779
Education costs
Building expenses
606,735
24,008,782
162,994
25,799,539
2,907
Sales incentives
Total
equity-based compensation
costs
Activity fees
1,441,930
3,575,612
875,266
882,259
8,513,646
1,222,789
3,845,114
914,346
903,115
2,469,717
12,510,022
1,444,616
4,027,893
39,623,824
2,131,004
1,972,676
782,704
956,140
7,320,780
1,229,180
3,149,879
1,516,590
856,043
606,969
13,156,605
(476,794)
6,422,048
(unit: thousand)
Last period
42,626,325
Current period
In the comprehensive income sheet, the selling cost, selling and administrative expenses shall be classified into the following categories.
Category
Semi-finished products and changes
Raw / auxiliary materials stored
Fluctuations in commodity
Employee benefits (Note1)
Sales-related costs (Note2)
Advertising expenses
Outsourced processing costs
Fees
Rent payments
Tax and Dues
Depreciation and Amortization
Research and development
Other costs
Total operating expenses
94
( : )
925,738
9,571,857
877,305
9,746,114
732,590
1,926,420
260,421
252,836
( : )
13,156,605
1,715,314
12,510,022
171,289
( 2) ++
27.
(1) .
10,293
18,786
19,515
108,571
4,953
301,430
43,746
154,157
(2) .
3,740
274,234
147,230
642,660
146,219
496
3,354
128,287
101,168
( : )
571,848
30,681
1,107,099
21,216
224,729
2,638
109,900
49,900
2,241,821
754,464
2,734
95
Category
Salary
Retirement Benefits
Employee benefits
Stock-based compensation
costs
Total
732,590
9,571,857
925,738
1,926,420
(unit: thousand)
Last period
Current period
9,746,114
877,305
1,715,314
13,156,605
171,289
12,510,022
(unit: thousand)
Last period
10,293
19,515
301,430
252,836
18,786
4,953
43,746
260,421
108,571
571,848
154,157
Current period
Category
Total
Rental income
Currency arbitrage
Other Reversal of allowance for bad
debts
Gain on disposal of tangible assets
Others
754,464
Current period
30,681
21,216
147,230
274,234
3,740
224,729
49,900
2,734
2,241,821
128,287
101,168
1,107,099
3,354
496
146,219
642,660
109,900
2,638
(unit: thousand)
Last period
(2) Details o f other ex pens es in the current and prior period are as
follows..
Total
Category
Loss on foreign currency
Foreign currency translation loss
Other bad debt expenses
Loss on disposal of tangible assets
Impairment of intangible assets
Loss on disposal of inventories
Inventory disposal loss
Subsidiary of investment assets
Donations
Others
96
28.
( : )
67,346
91
2,195
295,199
391,570
537,130
355,419
(1)
()
41,626
271,923
5,735
1,604,885
824,159
537,130
206,156
330,974
355,419
887,163
( : )
321,101
34,318
( : )
1,187,508
() .
(2) .
1,443,520
6,355
2,314
526,832
3,339
1,420,350
()
4,908,988
3,459,815
() .
97
(unit: thousand)
Last period
391,570
67,346
91
2,195
295,199
537,130
41,626
271,923
824,159
1,604,885
(unit: thousand)
1,187,508
5,735
355,419
Current period
Category
Interest income (note)
Currency arbitrage
Foreign currency translation
gains
Trading securities gains
Gain on disposal of trading
securities
Total
Dividend income
Gain on disposal of short-term
financial instruments
Gain on disposal of
available-for-sale securities
(Note) The details of the interest income incl udi ng financial income are as
330,974
206,156
Last period
34,318
537,130
Current period
321,101
Category
Financial institutions Deposits
355,419
Total
(unit: thousand)
6,355
887,163
2,314
526,832
Last period
3,339
1,420,350
1,443,520
Current period
Category
Loss on foreign currency
transactions
3,459,815
4,908,988
Total
(Note) T he details of the financing costs incl uding interest expense are as
follows
98
(2) .
( : )
330,974
537,130
206,156
34,318
355,419
887,163
( : )
321,101
1,443,520
6,355
2,314
526,832
3,339
()
1,420,350
( : )
4,908,988
3,459,815
407
114,781
2,099,814
3,352,136
145,097
6,377,380
1,405,454
() .
887,163
(4,679,975)
1,166,227
( : )
1,443,520
(6,484,411)
29.
(1) .
637,619
3,127,556
(1,774,787)
272,579
4,902,343
(4,902,343)
(3,327,835)
(1,301,929)
(608,560)
910,198
99
(unit: thousand)
330,974
206,156
Last period
34,318
537,130
Current period
321,101
Category
Financial institutions Deposits
355,419
Total
(unit: thousand)
Last period
526,832
6,355
3,339
1,420,350
887,163
3,459,815
1,443,520
4,908,988
2,314
Current period
Category
Interest expense (Note)
Loss on foreign currency
transactions
Foreign currency translation loss
Loss on disposal of trading
securities
Total
(unit: thousand)
3,352,136
Last period
145,097
407
114,781
1,405,454
Current period
(Note) T he details of the financi ng costs including interest expense are as follows.
Category
Convertible bonds
-
2,099,814
6,377,380
887,163
(4,679,975)
1,443,520
(6,484,411)
(1,774,787)
1,166,227
Last period
272,579
3,127,556
637,619
Current period
(unit: thousand)
Category
Tax burden
4,902,343
(4,902,343)
(3,327,835)
(608,560)
(1,301,929)
910,198
100
1,301,929
(2) .
(3) .
( : )
( : )
732,141
3,327,916
781,622
3,552,827
504,762
1,498,277
711,417
(2,154,402)
(402,478)
(1,292,306)
(118,610)
(608,560)
41,215
25.62%
910,198
( )
(4) () .
<>
( : )
(391,570)
6,030,998
651,451
(78,125)
68,086
(91,887)
(196,145)
35,479
391,570
1,295,475
42,342
(30,010)
1,711
70,092
53,878
348,776
1,500,000
7,394,559
693,793
(108,135)
1,500,000
(118,720)
313,297
250,023
161,979
120,431
2,933
(4,645)
(1,711)
101
Current period
1,301,929
Last period
-
(unit: thousand)
(2) Income tax expense information directly reflected i n the capital is as follows
Category
Warrants consideration
(3) T he relations hip between tax expense and profit or loss before i ncome tax expense is as follows
(unit: thousand)
781,622
3,552,827
504,762
732,141
3,327,916
Last period
1,498,277
711,417
(2,154,402)
Current period
Category
Unauthorized expenses
41,215
910,198
(118,610)
(608,560)
(402,478)
(unit: thousand)
Return reserves
Accrued income
1,500,000
(391,570)
6,030,998
651,451
(78,1250
68,086
(196,145)
35,479
391,570
1,295,475
42,342
(30,010)
1,711
70,092
53,878
348,776
1,500,000
7,394,559
693,793
(108,135)
313,297
(91,887)
Reflecting capital
250,023
2,933
(118,720)
Loss
Accrued expenses
Differences based on
dj
161,979
(4) Source and Changes in deferred tax assets (liabilities) are as follows.
<Last period>
Category
Valuation loss
(4,645)
120,431
Temporary differences
Government Grants
(1,711)
Government subsidies
102
(1,277,216)
3,831,647
4
5,108,863
(84,025)
(222,973)
(575,879)
(1,458,068)
144,045
47,723
4,114,241
(95,972)
1,585,367
(222,973)
(704,784)
(81,729)
(228,070)
(398,178)
274,234
(3,043,435)
4,819,025
-
274,234
47,723
-
14,741,554
(20,544,651)
4,158,913
(5,917,857)
(5,917,857)
2,412,874
14,741,554
(5,917,857)
3,327,835
(20,544,651)
(4,546,386)
(1,301,929)
644,885
(13,643)
(355,320)
85,742
14,636,798
82,741
1,682,247
4,902,343
( : )
, .
<>
651,451
(78,125)
44,486
110,381
6,030,998
1,629,812
(391,570)
(391,570)
(2,572,207)
606,965
(188,506)
4,282,892
1,500,000
2,572,207
1,500,000
2
-
270,658
(49,418)
161,979
149,608
42,639
49,418
161,979
250,023
313,297
118,294
(2)
100,415
103
5,108,863
(81,729)
(95,972)
1,585,367
(1,277,216)
(575,879)
(1,458,068)
3,831,647
(3,043,435)
Bankruptcy bill
Adjust conversion rights
Compressed millet reserves - land
4,819,025
(228,070)
(222,973)
274,234
(704,784)
144,045
47,723
4,114,241
(84,025)
(222,973)
47,723
Warrants consideration
Repayment premiums
Adjustment of warrants
4,902,343
1,682,247
14,636,798
82,741
85,742
(13,643)
(355,320)
644,885
(4,546,386)
14,741,554
(20,544,651)
(1,301,929)
(5,917,857)
(5,917,857)
3,327,835
2,412,874
4,158,913
(5,917,857)
14,741,554
(20,544,651)
274,234
bl f
l
Lossl on
valuation
of
l bl f of intangible
l
Impairment
assets
Differences based on
adjustment
Loss
Reflecting capital
(unit: thousand)
From the next period, the estimated taxable earnings of the company will exceed the deductible temporary difference of each accounting period, which will be used to determine the possibility
of realizing deferred tax assets
Except the conditions that the disposal of investment assets may not be realized, income tax effects are not recognized.
Category
Temporary differences
651,451
-
6,030,998
(78,125)
1,629,812
(391,570)
44,486
(2,572,207)
1,500,000
110,381
(391,570)
1,500,000
4,282,892
606,965
2,572,207
(188,506)
Accrued income
49,418
Return reserves
100,415
270,658
(49,418)
161,979
149,608
42,639
161,979
250,023
313,297
118,294
(2)
104
47,723
4,819,025
(372,115)
(222,973)
(186,935)
(10,014,694)
12,772,158
(7,578)
7,578
81,100
144,045
(211,243)
6,971,259
(7,663,295)
2,933
112,853
1,682,247
14,636,798
47,723
4,819,025
(228,070)
(222,973)
(398,178)
(3,043,435)
5,108,863
(4,645)
120,431
339,534
14,216,164
1,682,247
2,586,757
2,586,757
(25,014,696)
(27,601,453)
3,936,476,527
( : , )
(25,014,696)
310
12,683,456
2,642,628,514
(27,601,453)
185
14,250,977
4,902,343
1,700,090
3,127,555
( : )
74,697
(5) () .
30.
(1)
(1)
(2) ()
(1 2)
105
(222,973)
(186,935)
(10,014,694)
12,772,158
(7,578)
7,578
144,045
(211,243)
6,971,259
(7,663,295)
2,933
112,853
1,682,247
14,636,798
47,723
4,819,025
(228,070)
(222,973)
(398,178)
(3,043,435)
5,108,863
(4,645)
120,431
Government Grants
(372,115)
-
81,100
Bankruptcy bill
Temporary depreciation
allowance
Impairment losses on
available-for-sale securities
Loss on valuation of
available-for-sale securities
Stock-based compensation
4,819,025
-
1,682,247
Government subsidies
t
Compressed millet
47,723
339,534
1,700,090
3,127,555
14,216,164
-
2,586,757
(25,014,696)
(27,601,453)
(unit: thousand)
Last period
2,586,757
4,902,343
74,697
(27,601,453)
Current period
(25,014,696)
(5) Not recognized deferred tax assets (liabilities) temporary differences are as follows:.
Category
Subsidiaries
Goodwill
Total
3,936,476,527
310
14,250,977
185
2,642,628,514
Current period
Basic earnings per share for the year and are as follows
106
()
( : )
1,131
12,684,587
14,252,108
(1)
( : , )
( 1)
12,683,456
1,131
145
19,886,918
2,890,611,334
14,250,977
(2)
(1 - 2)
(2)
(1) ( 2)
(2) ( 3)
(1 2)
2,642,628,514
( 1)
( : )
( 1) .
( 2)
134,807,167
113,175,653
(*1)
(*2)
2,890,611,334
(*3)
(*2) .
(*1) .
(*3) .
( 3)
107
(unit : share)
14,252,108
1,131
12,684,587
Last period
1,131
(Note1)
12,683,456
145
19,886,918
2,890,611,334
Current period
14,250,977
Current period
Category
The weighted average number of
shares outstanding (1)
Weighted average shares
outstanding magnetic (2)
The weighted average number of
common outstanding shares
(1-2)
(2) Diluted earni ngs per s hare
Category
Net income diluted common shares (1)
(Note 2)
Diluted weighted average number of
common shares outstanding (2) (3)
Diluted earnings per share (1 2)
(unit : won)
(Note 1)I f If the effects induced by the po tential diluting securities in the last period fail to work, the basic and diluted earni ngs per s hare s hall be the same.
(Note1)
Last period
2,642,628,514
Current period
134,807,167
Category
Net profits of ordinary shares in the current
period
Addition
Interest expense of convertible bonds (1)
2,890,611,334
113,175,653
Becaus e the dilution effect of the converti ble bonds did not happen, it wasnt included into the increas e of the net income in the current period.
Excluding the part of asset replacement in equity-based compensation expense, the after-tax costs decreased.
Excluding the capitalized interest expenses in bond with warrants, the after-tax interest expenses decreased
(Note3)The calculation of the weighted average of outstanding diluted common shares.
108
14,250,977
2,139
(*1)
5,633,803
19,886,918
( 1)
( : )
(*1) .
31.
(1) . (2)
( : )
984,909
3,327,916
737,090
915,877
526,832
3,552,827
172,830
871,169
3,459,815
775,203
709,379
1,107,099
1,518,951
147,230
172,880
642,660
161,979
3,354
137,638
274,234
19
(295,199)
(391,570)
40,177
(271,924)
22,360
(824,159)
(5,735)
109
Category
Weighted average number of common
shares outstanding
Ordinary shares with dilutive potential
The conversion of Convertible bonds, (*
1)
Effective exercise of share options
Total
14,250,977
Current period
2,139
5,633,803
19,886,918
(unit : share)
Last period
(Note1)
Because the dilution effects of convertible bonds did not happen, the dilution effects were not included in the diluted common shares.
(1) T h e a m o u n t o f c ash and cas h equivalents on the balance s heet and cas h flow statement can match.
(unit: thousand)
915,877
526,832
737,090
984,909
3,327,916
Last period
172,830
871,169
3,552,827
Current period
Category
Income before income taxes
Retirement Benefits
3,459,815
775,203
Adjustment Items
Equity-based compensation costs
709,379
1,107,099
1,518,951
172,880
3,354
137,638
161,979
147,230
40,177
19
642,660
22,360
(5,735)
(295,199)
274,234
(391,570)
(271,924)
(824,159)
110
(154,157)
(537,130)
(10,293)
(355,419)
887,164
(41,626)
(4,953)
(91,887)
1,443,520
5,124,765
(176,954)
(541,694)
26,211
(35,532,688)
(2,272,038)
57,925
(1,643,430)
580,624
1,598
()
4,334,664
13,815
28,590,477
(4,821,257)
()
(60,782,160)
(26,867)
(6,339,776)
()
(20,380)
(95,410)
()
(37,680)
()
()
42,640
5,770,286
35,479
44,486
(1,243,745)
(1,782,726)
(1,568,568)
(66,251,316)
42,342
(17,205,767)
()
(3) .
( : )
1,096,157
20,923,076
3,660,152
534,536
1,213,610
1,601,809
409,276
524,826
2,780,000
60,000,000
32.
111
(154,157)
(537,130)
(10,293)
(355,419)
887,164
(41,626)
(4,953)
(91,887)
Interest income
1,443,520
5,124,765
(176,954)
(541,694)
26,211
(35,532,688)
(2,272,038)
57,925
(1,643,430)
580,624
1,598
4,334,664
13,815
28,590,477
(4,821,257)
(60,782,160)
(26,867)
(6,339,776)
(20,380)
(95,410)
Interest expense
Changes in assets and liabilities from operating
activities
Increase in trade receivables
Reduction of the bankruptcy bill (increase)
(37,680)
42,640
5,770,286
44,486
(1,243,745)
(1,782,726)
42,342
(66,251,316)
(1,568,568)
(17,205,767)
(unit: thousand)
1,096,157
-
20,923,076
Category
3,660,152
1,213,610
Category
(3) T h e significant transactions without cas h i nflows and outflows are as follows:.
Category
Exercise conversion rights
2,780,000
60,000,000
524,826
1,601,809
409,276
534,536
112
(1)
()
( : )
() .
(2) .
84,279
33,820,351
86,807
2,441,001
1,080,000
173,614
144,805
1,080,000
84,279
( : )
33,820,351
1,922,720
1,922,720
2,585,806
260,421
(3) .
23,000,000
23,000,000
110,000,000
23,000,000
133,000,000
113
(1) R e l a t e d P a r t y S t a t u s
Celltrion Healthcare
Related party
Relation
The enterprises that exercise the influence of the
company
Significant influence companies
The enterprises that are influedced by the
company
Subsidiaries
Celltrion
Income
Net income
Expense
Income
Net income
33,820,351
Product purchases
84,279
Rent Income
Commissions
Interest expense
2,441,001
86,807
Rent Income
173,614
1,080,000
144,805
1,922,720
Repayment
Loans
23,000,000
1,080,000
84,279
33,820,351
1,922,720
2,585,806
260,421
(Note)From the end of the las t perio d to current period, the relationshi p between Celltrion Ho ldings and the co mpany is disassociat ed becaus e the dis posal of share ri ghts done by Celltrio n Holdings caused the ratio
of equity holdi ngs of the company decreased.
Relationship with
the Company
Other special
relationship
Affliated
enterprises
Affiliated
enterprises
Subsidiary
(2) The contents of signi ficant transactions wi th related parties are as follows.
Company
Celltrion Healthcare
Celltrion
Celltrion Holdings
Celltrion Chemical Laboratory
Total
Net income
Net income
110,000,000
23,000,000
133,000,000
Borrowingtransactions
23,000,000
-
Lending transactions
Company
Affiliated enterprises
Borrowing transactions
Celltrion
Affiliated enterprise
Lending
transactions
Celltrion Holdings
Sum
114
( : )
63,272,387
22,240,000
5,550
106,175,309
54,196,903
22,240,000
63,690,657
412,720
19,460,000
1,978,406
50,000,000
19,460,000
2012.3.20 ~ 2014.2.27
( : )
(4) .
6,000,000
(5) .
-2008 10 24
(6)
2009 6 30 15 , 3 , 5
.
1 -2010 5 17 , 2 -2010 10 5 ,
3 -2012 12 31
,
.
115
Total
Subsidiary
Corporate
Relations
Other special
relationship
Relationship with
the Company
22,240,000
5,550
63,272,387
Debt
19,460,000
1,978,406
Bond
50,000,000
Debt
Accounts Payable
-
Bond
Long-term Loans
412,720
54,196,903
-
63,690,657
22,240,000
Warranty processing
2012.3.20 ~ 2014.2.27
Warranty
Debt Guarantees
Warranty details
106,175,309
19,460,000
Accounts Payable
Accrued expenses
Long-term
prepayments
Trade payables
Accounts
(4) Details of the mai n accounts receivables and acco unts payables resulti ng from the transactions with related parties are as follows:
Company
Celltrion Healthcare
Celltrion
Celltrion Chemical
Laboratory
Price Guarantee
6,000,000
National bank
(5) The details of payment guarantee provided by the related party are listed as follows
supplier
CEO
Contents
Primary dealership contract and grant contract modifications
Items
Agreement Name
Celltrion Healthcare
The first contract date-24 Oct 2008
Contract partner
Within 15 years since June 30, 2009, if no written agreement is presented by any party three months
before expiration, the contract will be automatically extended for 5 years.
Contract date
Term
Celltrion healthcares right of monopoly sales of specific products in domestic market would be given to
celltrion pharm, including biosimilars, therapeutic antibody and other new drugs that is being or going to
be developed by celltrion.
1Chasujeong contract date-17 may 2010 2Chasujeong contract date-5 Oct 2010
3Tea revised contract date-Dec 31 2012
Date of second contract revision-October 5.
Date of third overall contract revision- December 31, 2012
Agreement
116
25,000 9 2,780 (,
CT-P06 2,760 ),
. , 2014
2014 12 31 .
25,000
2010 ,
2009 1 23
.
, "CT-P06 " "CT-P13 " 2010 CT-P06 13,000 , 2011 CT-P13 31,600 , 2012
CT-P13 CT-P1333,820 .
5.41% 20.96% .
, 50,000
50,000 .
(7)
( : )
76,216
382,500
458,716
425,500
510,010
84,510
( ) ,
.
(1)
33.
4,100
50,000
117
Notes
Mortgage offer
In 2010, celltrion healthcare transferred it investment department to celltrion holdings in the way of
spinoff. Celltrion holdings is the largest shareholder of celltrion. Meanwhile , Seo Jeongjin was elected the
companys representative director, who was also the largest shareholder of celltrionholdings.
As the price of sales right, the collateral assets shall be provided for celltrion pharm before the
prepayment liquidates or product payment is deducted.
The amount of KRW 250 BN is the prepayment of 9 types products of celltrion, each product being KRW
27.8 BN (Exception: CT-P06 being KRW 27.6 BN). The amount paid by celltrionhealthcare is first
deducted from the final payment to consumers, unless as of 2014, unliquidated prepayment was
deducted from the payment for other products that had been out of storage. As of December 31, 2014.
the total amount of unliquidated prepayment was returned to celltrion Pharm.
25,000KRW 1 MN
The company signed a "Basic Treaty Authorized Dealer" in 2008, and paid 25000 million KRW in long-term prepayments. According to Overhaul Treaty Authorized Dealer signed in December 2012, prepayments of 9 kinds of products except CT-P06 should
be liquidated at of the end of 2014,.In the 25000 million of long-term prepayments, 2760 million won has offset with the prepayment of CT-P06 in 2011. Because the 2780 million KRW prepayment of CT-P13 offset additionally, long-term prepayments are
19,460 million at the end of the current period.
In addition, based on CT-P06 supplier Treaty "and" CT-P13 supplier Treaty ", the company bought the equivalent of 13,000 million KRW CT-P06 in 2010 and 31,600 million KRW CT-P13 for early safety stock in 2011. With the CT-P13 commercialization
in 2012, additionally purchased 33,820 million KRW CT-P13.
From the end of the period to the present, long-term residual amount of unliquidated advances incurred in obtaining the right to sell and purchasing goods booked and stock amount account for 5.41% and 20.96% respectively of the total assets at the
end.
On the other hand, related to long-term prepayment, the company obtained 50000 shares o f registered ordi nary shares of celltrion holdi ngs and 50000 s hares of registered ordi nary s hares of celltrionhealthcares as
collateral fro m its largest shareholder as well as repres entative director, SeoJeo ng.
7Compensatio n of key management personnel
Current period
76,216
382,500
Competent court
Progress
Pending trial
Before the first
trial verdict
458,716
425,500
510,010
84,510
Last period
Key administrative staff have direct/indirect authorities and respo nsibilities of planning/co mmand/controlof the co mpany's activities, all directors (whether executive directo r or not) are included. The following is the
compensation fo r key administrative staff.
Items
Short-term employee benefits
Retirement Benefits
Total
33. Contingencies and other co ntractual matters
(1) Pendi ng litigations
Plaintiff
4,100KRW 000
Litigation amounts
50,000KRW 000
The contents of main pending litigations where the company is the defendant are as follows.
Types of events
Compensation for damages
Patent infringement claims and
claims prevention
118
, .
(2)
( : , USD)
(D/A)
USD
USD
USD
KRW
79,988
9,000,000
300,000
177,200
2,000,000
50,000,000
5,000,000
79,988
6,093,779
1,129,075
(17,337 )
(60 )
KRW
5,000,000
68,090,262
1,209,063
6,996,483
USD
50,000,000
KRW
71,000,000
2,557,188
7,000,000
LOCAL
KRW
USD
(1,630 USD 250,600)
KRW
(3) ( )
( : )
, 215,489 232,642 .
108,955
157,130
266,085
1 5
34.
1108 "" .
(1) .
119
Currency
Limit commitments
177,200
6,093,779
1,129,075
6,996,483
Spinning liquid
300,000
Collateral information
The impacts of final results were not reflected in the financial statements since it was difficult to make reasonable predictions about the final results of the above-mentioned litigations from the date of audit report till present.
Items
USD
9,000,000
79,988
2,000,000
USD
79,988
7,000,000
Non-credit scheme
KRW
5,000,000
USD
USD
50,000,000
KRW
Discount Bills
KRW
71,000,000
LOCALOthers bought
KRW
Non-credits cheme(D/A)
1,209,063
68,090,262
USD
From the end of this period till now, the main agreements between the company and financial institutions are listed as follow
Financial Institutions
Industrial Bank
National
bank
Total
The company signed a contract for the operation lease and lease o f transportation equipment with Hyundaicapital and Amazoncar. Leas e payments for the current and last period are 215,489 KRW 000 and 232,642 K RW
000.
At the end of the current period, the future annual lease payment plan is as follow.
157,130
108,955
Lease
266,085
Term
Within five years more than 1 years1
Within a year
Total
In accordance with K-I FRS 1108 the Company is considered as a single department based on the report of the sales department. The department information at an
(1) The operating revenue generated by main products and service is as follow.
120
( : )
3,962,570
21,807,411
26,595,095
3,892,193
2,336,407
1,899,126
3,888,159
12,081,370
2,197,607
64,631
1,000,295
38,387,929
( : )
44,707,596
4,200,178
50,083,248
65,800
10,800,002
3,328,115
44,758,994
2,552,765
(2) .
628,057
2,363,495
1,705,346
44,707,596
50,083,248
1,066,143
, () .
35.
(1)
, , , , , ,
.
, , , .
, . , BBB(S&P)
. , . .
. , , .
121
Godex
3,888,159
2,336,407
26,595,095
12,081,370
1,899,126
3,892,193
3,962,570
21,807,411
Last period
Hepadif
2,197,607
Current period
Tomipool
10,800,002
Items
Somax
Product sales
Others
Product sales
64,631
44,707,596
1,000,295
50,083,248
4,200,178
Ram Island
Total
65,800
Others
38,387,929
Last period
3,328,115
44,758,994
Current period
2,552,765
628,057
2,363,495
Items
Domestic
1,705,346
Overseas
Kazakhstan
1,066,143
44,707,596
others
50,083,248
Philippines
Total
In addition, the Companys tangible assets and other no n-current assets are based in Korea (Republic of Korea).
35.Risk management
(1) Financial risk management
As the main object of risk management of the Company, fi nancial assets include cash and cash equivalents, short-term financial instruments, available-for-sale financial assets, trade receivables and other receivables .
Financial liabilities include accounts payable, borrowings, bonds and other debt.
The Company faces the risk of the changes in exchange rate, i nterest rate and market price, which may affect its assets, liabilities and expected trans actions. The goal of risk management is to control the market ris k
of operati ng activities and financial activities. B ased o n risk assess ment and the above mentioned goals, the company wo uld use derivative o r non-derivative risk hedgi ng instruments. The co mpany wo uld o nly hedge t he
risk that affects its cash flow. Derivative instruments are not for the us e of short-term sales o r other investment, but only for the use o f risk hedging. In order to manage credit risk, risk hedging transactio ns are o nly
carried out through the financial institutions with highest credit rati ng, BBB (S&P) or above. In addition, the company manages the credit risk by setting up a relative/absolute amount of mo ney aimed at such risk according
to the credit of trading partners.
122
, , .
1)
( : )
. .
252,078
2,989,439
7,839,080
29,789,827
10,071,947
34,685,001
1,305,760
47,955,957
1,503,033
5,582,500
10,194,465
56,257,173
2)
, .
,
.
.
<>
( : )
50,000,000
54,196,903
11,373,580
50,000,000
69,366,186
5,555,886
826,128
826,128
191,318,683
5,555,886
50,000,000
54,196,903
2 ~5
19,366,186
11,373,580
104,196,903
1 ~2
61,373,580
25,748,200
123
The companys financial policies are established annually by the Board of directo rs. Certain trans actions require prior appro val of the Board o f Directors. T he severity and the amo unt of current risk exposure s hall be reported
on a regular basis.
not and realizes the possibilities of problems in the clients ability to pay. With such management activities, the Company will conduct supply adjustments to those clients whose affordability is at risk, and thus lowering the credit risk to the minimum level.
To conduct credit risk management, the Company has transactions with dealers whose credits are higher than a certain level. To conduct credit risk management of financial assets, the Company clearly knows whether the monthly settlement is normal or
2,989,439
7,839,080
29,789,827
10,071,947
The maxium level exposure to credit risk of financial assets at the end of current period and at the end of last period are as follows.
Items
Cash and cash equivalents
34,685,001
1,305,760
47,955,957
1,503,033
5,582,500
10,194,465
56,257,173
Other receivables
Financial assets at fair value
h
h
fi
l
Available-for-sale financial assets
Total
Maturity analysis of the remaining contractual maturities of financial liabilities are as follows.
<End of this period>
826,128
50,000,000
191,318,683
54,196,903
11,373,580
50,000,000
69,366,186
5,555,886
826,128
Total
5,555,886
50,000,000
54,196,903
2 years~5years
19,366,186
11,373,580
104,196,903
1 year~2years
Financial institutions
loans
-
61,373,580
Items
Other loans
Trade payables
Convertible bonds
25,748,200
Total
124
<>
73,641,575
20,770,803
( : )
14,065,429
64,388,288
50,000,000
172,866,095
14,065,429
2 ~5
64,388,288
64,065,429
1 ~2
20,770,803
23,641,575
108,800,666
3)
. ,
.
.
USD . ,
, . , ,
.
1,255,807
(21,061)
(3,339)
1,545,253.00
328,525.31
2,777,297.10
628,041.85
1,655,120
351,883
2,974,763
672,696
67,346
(8,345)
(92,823)
( : USD, )
1,999,807
(155)
1,190,000.29
2,195
1,895,012.50
253,786
USD
1,275,924
(6,355)
USD
240,487.00
1,209,062.50
USD
USD
1,055.30
(223,348)
10%
()
223,348
10%
1,071.10
234,422
10%
( : )
(234,422)
10%
()
. 10% .
USD
125
Total
73,641,575
20,770,803
2 years~5
50,000,000
1 year~2
64,388,288
20,770,803
Items
Trade payables
23,641,575
172,866,095
14,065,429
64,065,429
14 065 429
108,800,666
Financial institutions
loans
Convertible bonds
Total
The goal of the companys market risk management is to minimize the risk to the co mpanys revenue. Market risk is the risk of losses in the revenue o r value the Co mpanys portfolio caused by changes in the interes t
rate, foreign exchange rate and other market factors.
Foreign exchange risk management
Last period
In terms of exports and i mports of raw materials, the company believes that it was exposed to US dollar foreign ex change risk. In o rder to minimize the foreign exchange risk arising fro moperating activities, the Co mpa ny
uses local currency i n exports and imports and o ther current transactions, deposits and financial transactions. Under the principle of trans fer accounts and unified money expenditure, the Co mpany tries to avoid exchange
position. The Co mpany pro hibits speculative foreign exchange transactions, and regularly mo nitors, evaluates and manages foreign exchange risk.
Current period
1,255,807
(155)
(21,061)
(3,339)
1,545,253.00
328,525.31
2,777,297.10
628,041.85
1,655,120
351,883
2,974,763
672,696
67,346
(8,345)
(92,823)
(6,355)
Translation gains
1,999,807
2,195
KRW amounts
1,190,000.29
253,786
Translation gains
1,895,012.50
1,275,924
KRW amounts
USD
240,487.00
Foreign
currency
type
USD
1,209,062.50
Items
Cash and cash
equivalents
Accounts Receivable
USD
USD
Foreign currency
amounts
Short-term loans
Accounts receivable
Foreign currency
amounts
The carrying amount of monetary assets and liabilities using foreign currency other than functional currency is as follow.
Asset
s
Debts
1,055.30
Apply Currency
Current period
(223,348)
10%rise
10%rise
1,071.10
Apply Currency
234,422
10%rise
(234,422)
10%rise
Last period
The Company eval uates the currency risk on the exchange rate changes o n a regular basis. When the exchange rate o f functional currency for each foreign currency fl uctuates up to 10%, its influence o n profit is as follow.
Items
USD
126
, .
(2)
( : )
2,989,439
173,859,494
170,870,055
192,572,318
182,500,371
109.38%
156,216,290
109.01%
167,415,488
10,071,947
36.
(1)
2013 12 31 2014 2 25 .
(2)
2014 1 29 , 3 ( 17 ) 90 , .
127
Since the Company is fi nanced by issui ng fixed rate bo nds, therefore, it shall not be exposed to cash flow interest rate risk. In the meanti me, the company believes that the changes in fair value interest rate risk level
are not very important.
(2)Capital risk management
2,989,439
173,859,494
170,870,055
10,071,947
182,500,371
109.38%
156,216,290
192,572,318
Current period
The Companys capital objectives are to safeguard the Companys ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and benefits for other stakeholders and
to maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital on the basis of the geari ng ratio, which is calculated as net debt divided by total capital. Net debt is calculated as total borrowi ngs less cash and cas h equival ents. Total capital is calculated
as equity as shown i n the consolidated statement of fi nancial position pl us net debt.
Items
Total liabilities
Net debt
109.01%
167,415,488
128
2013 12 31
2 3 .
2.
: 1.
129
Internal Accounting Managementl System Audit Report carries out the audit of the financial statements of Celltrion pharmaceuticals, Inc. up to 31 December 2013. The audit result of internal accounting management system is attached in accordance with the
third item in the second article of related laws on external audit. .
130
2014 2 21
2013 12 31 . ,
, .
"2013 12 31 , 2013 12 31 ,
" .
.
.
. . ,
.
2013 12 31 2013 12 31 .
.
-2014.jpg
-2014
131
21 February 2014
We audited the operations of Celltrion Pharmaceutical, Inc. internal accounting management system up to 31 December 2011. Celltrion Pharmaceutical, Inc. is responsible for setting up its internal accounting management system and preparing its operating
condition assessment report. We are responsible for the audit and report results for the same report content. In the internal accounting management system assessment report, the companys operator wrote: as of 31 December 2011, the results of the internal
accounting management system operating condition states that our companys internal accounting management system is preparing for internal accounting management regulations and organization as well as strictly obeying the relevant control procedures
of internal accounting management.
We conducted the audit according to internal accounting management system audit standards. The standard starts from a material review, and we carried audit procedures and lower-standard recognitions on the internal accounting management system
operating condition assessment report submitted by operators. The audit should fairly convey the companys internal accounting management system, including questions on the internal accounting management system operating condition report, while
recognizing that the content is only relevant within the limited range of its prescribed scope.
Internal accounting regulations and organizations (management and operation) are established in order to collect reliable accounting information and open it to the public, as well as confirm that the financial statement functions in accordance with the
accounting principles that are generally accepted in Korea. However, because of the essential limitations of the internal accounting control system, vital misstatements might not have been identified and avoided. Additionally, when predicting future content
based on the operating assessment reports of the internal accounting control system, we must consider that changes might happen due to different situations, or improper conditions resulting from a failure to observe certain procedures and policies. We must
watch out for the risk inherent in assessment changes and predicted content in the future.
For the internal accounting management system operating condition reports submitted by operators, our audit result states that: the operation condition report, seen it from the view of content, is in accordance with the regulation in the internal accounting
management system model standard.
JoJungeon
Accountancy
Li An
Representative Director
Jo Jungeon
Our audit targeted the internal accounting control regulations up to 31 December 2013, but is not responsible for this regulation after 31 December 2013. This audit report was made based on the relevant laws for external audits of joint-stock companies,
so it may not be proper for other purposes or users.
132