FJ CORPORATION

STATEMENTS OF FINANCIAL POSITION

31-Dec
2012

Amount of
Changes
2011

ASSETS
Current Assets
Cash (Note 5)
Trade receivables (Notes 4 and 6)
Unbilled processing costs and inventories (Note 7)
Prepaid expenses and other current assets (Note 8)

2,385,789
3,514,931
1,802,355
781,127

1,172,289
4,356,255
3,295,888
1,658,851

1,213,500
-841,324
-1,493,533
-877,724

Total Current Assets

8,484,202

10,483,283

-1,999,081

Noncurrent Assets
Property, plant and equipment (Note 9)
Other noncurrent assets (Note 10)
Total Noncurrent Assets

5,044,677
1,360,070
6,404,747

4,788,800
2,400,893
7,189,693

255,877
-1,040,823
-784,946

14,888,949

17,672,976

-2,784,027

6,279,921
634,568
31,109
6,945,598

8,281,107
916,966
216,874
9,414,947

-2,001,186
-282,398
-185,765

3,843,655
10,672,000
9,131
17,176,645
31,701,431
38,647,029

6,012,113
5,287,525
169,410
15,986,208
27,455,256
36,870,203

-2,168,458
5,384,475
-160,279
1,190,437
4,246,175
1,776,826

34,000,000
9,465,565

34,000,000
9,465,565

0
0

-67,223,645
-23,758,080

-62,662,792
-19,197,227

-4,560,853

14,888,949

17,672,976

-2,784,027

TOTAL ASSETS
LIABILITIES AND CAPITAL DEFICIENCY
Current Liabilities

Accrued expenses and other current liabilities (Note 11)

Due to affiliates (Note 4)
Income tax payable
Total Current Liabilities

-2,469,349

Noncurrent Liabilities
Due to stockholders (Note 4)
Accrued retirement benefits (Note 12)
Deferred income tax liability (Note 18)
Other noncurrent liabilities (Note 13)
Total Noncurrent Liabilities

Total Liabilities
Capital Deficiency (Note 1)
Capital stock (Note 14)
Additional paid-in capital
Deficit

Total Capital Deficiency

TOTAL LIABILITIES AND CAPITAL DEFICIENCY

See accompanying Notes to Financial Statements.

-4,560,853

FJ CORPORATION
STATEMENTS OF INCOME AND DEFICIT
Years Ended
December 31
2012
REVENUE
Processing fees (Note 4)

Amount of
Changes
2011

33,894,196

29,761,540

4,132,656

561,793

862,624

-300,831

34,455,989

30,624,164

3,831,825

41,677,641

33,841,314

7,836,327

7,221,652

3,217,150

4,004,502

14,208,796

9,832,323

4,376,473

9,496,617
2,376

-859,884

7,406,222
4,652
-2,684
5,998

2,090,395
-2,276
2,684
-865,882

1,324,337

1,324,337

185,600
10,149,046

290,424
7,704,612

-104,824
2,444,434

4,059,750

2,127,711

501,103

792,681

-291,578

4,560,853

2,920,392

1,640,461

DEFICIT, AT JANUARY 1

62,662,792

59,742,400

2,920,392

DEFICIT, AT DECEMBER 31

67,223,645

62,662,792

4,560,853

Sale of goods

COSTS OF PROCESSING AND GOODS SOLD

(Notes 4 and 15)
GROSS LOSS

LOSS FROM OPERATIONS

OTHER INCOME (CHARGES)
Rent (Note 13)
Interest income (Note 5)
Interest expense
Foreign exchange (loss) gain
Reversal of provision for contingencies (Note 11)
Others

LOSS BEFORE INCOME TAX

PROVISION FOR INCOME TAX (Note 18)
NET LOSS

See accompanying Notes to Financial Statements.

FJ CORPORATION

1,932,039

STATEMENTS OF CASH FLOWS

Years Ended
December 31

Amount of
Change

2012

2011

-4,059,750

-2,127,711

-1,932,039

5,384,475

2,156,425

3,228,050

1,778,910
478,520

1,662,736
714

116,174
477,806

-1,324,337
-185,000
-2,376

-4,652
2,684

-1,324,337
-185,000
2,276
2,684

2,070,442

1,690,196

380,246

841,324
1,493,533
877,724
-159,553

-1,230,285
-1,825,334
264,935
-212,422

2,071,609
3,318,867
612,789
52,869

-676,849
-282,398
1,190,437
5,354,660
-847,147

-582,779
158,468
1,141,818
-595,403
-665,401

-94,070
-440,866
48,619
5,950,063
-181,746

4,507,513

-1,260,804

5,768,317

Additions to property, plant and equipment (Note 9)

-834,411

-1,354,423

520,012

Proceeds from sale of property, plant and equipment

Interest received (Notes 5)

185,000
2,376

4,652

185,000
-2,276

-647,035

-1,349,771

702,736

-2,168,458

3,381,907
-2,684

5,550,365
2,684

-2,168,458

3,379,223

-5,547,681

1,692,020

768,648

923,372

-478,520

-714

-477,806

CASH AT JANUARY 1

1,172,289

404,355

767,934

CASH AT DECEMBER 31

2,385,789

1,172,289

1,213,500

CASH FLOWS FROM OPERATING ACTIVITIES

Loss before income tax
Adjustments to reconcile loss before income tax to net cash flows:
Retirement cost (Notes 12, 15, 16 and 17)
Depreciation and amortization (Notes 9, 10,15 and

16)

Unrealized foreign exchange loss

Reversal of provision from contingencies (Note 11)
Gain on sale of property, plant and equipment
Interest income (Note 5)
Interest expense
Operating income (loss) before working capital adjustments
Decrease (increase) in:
Trade receivables
Unbilled processing costs and inventories
Prepaid expenses and other current assets
Other noncurrent assets
Increase (decrease) in:
Accrued expenses and other current liabilities
Due to affiliates
Other noncurrent liabilities
Net cash generated from (used in) operations
Income tax paid
Net cash flows from (used) in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES

Net cash flows used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (payments) of advances from stockholders
Interest paid
Net cash flows from (used in) financing activities
NET INCREASE IN CASH
EFFECT OF EXCHANGE RATE CHANGES ON CASH

See accompanying Notes to Financial Statements.

Percentage of
Change

103.52%
-19.31%
-45.32%
-52.91%
-19.07%

5.34%
-43.35%
-10.92%
-15.75%

-24.17%
-30.80%
-85.66%
-26.23%

-36.07%
101.83%
-94.61%
7.45%
15.47%
4.82%

0.00%
0.00%
7.28%
23.76%
-15.75%

Percentage of
Change

13.89%
-34.87%
12.51%
23.16%
124.47%

44.51%

28.22%
-48.93%
-100.00%
-14436.18%

-36.09%
31.73%
90.80%
-36.78%
56.17%
4.89%
7.28%

Percentage of
Change

90.80%

149.69%
6.99%
66919.61%

-48.93%
100.00%
22.50%
-168.38%
-181.82%
231.30%
-24.89%
16.14%
-278.21%
4.26%
-999.33%
27.31%
-457.51%
-38.39%

-48.93%
-52.06%

164.12%
-100.00%
-164.17%
120.13%
66919.61%
189.92%
103.52%