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Exhibit 99(k)
TAISIL ELECTRONIC MATERIALS CORPORATION
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
(EXPRESSED IN THOUSANDS OF US DOLLARS)
1996
1998 1997 (UNAUDITED)
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Cash flows from operating activities:
Net loss $ (58,414) (13,784) (16,931)
Adjustments to reconcile net loss to net cash used in operating
activities:
Non-cash foreign exchange (gain) loss 1,521 (16,510) (644)
Depreciation and amortization 38,961 26,497 9,356
Provision (reversal) for inventory loss 1,170 (1,207) 5,628
Loss from disposal of fixed assets 52 9 4
Decrease (increase) in notes and accounts receivable 6,686 (20,027) (3,826)
Decrease (increase) in inventories 1,082 (5,068) (16,713)
Decrease (increase) in prepayments and other current assets 1,264 (4,103) 1,216
Decrease (increase) in deferred income taxes 13,794 (3,852) (11,671)
Increase (decrease) in notes and accounts payable (7,380) 1,550 1,662
Increase (decrease) in accrued expenses and other current liabilities (1,801) 10,573 1,234
Increase in accrued pension liabilities 310 - -
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Net cash used in operating activities (2,755) (25,922) (30,685)
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Cash flows from investing activities:
Decrease (increase) in short-term investments 1,716 (2,060) -
Increase in long-term investment (23) - -
Additions to property, plant and equipment (13,020) (75,965) (139,758)
Proceeds from disposal of property and equipment 22 18 18
Increase in technology fees and other assets (1,379) (247) (1,538)
Decrease (increase) in restricted bank deposits 2,132 36,650 (10,635)
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Net cash used in investing activities (10,552) (41,604) (151,913)
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Cash flows from financing activities:
Proceeds from issuance of common stock and advance from stockholders 56,848 18,841 41,867
Increase (decrease) in loans and bills payable (31,132) 57,081 142,658
Increase (decrease) in deposits from contractors 46 (16) 37
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Net cash provided by financing activities 25,762 75,906 184,562
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Net increase in cash and cash equivalents 12,455 8,380 1,964
Effect of exchange rate changes on cash (142) (740) (66)
Cash and cash equivalents at beginning of the year 18,755 11,115 9,217
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Cash and cash equivalents at end of the year $ 31,068 18,755 11,115
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Supplemental disclosure of cash flow information:
Cash paid for interest, excluding capitalized interest $ 15,032 14,015 6,549
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Cash paid for income taxes (including refundable income taxes) $ 163 191 358
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See accompanying notes to financial statements.