ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Year ended

Year ended

December 31,

December 31,

December 31,

2015

2015

2014

(unaudited)

  (unaudited)  

  (audited)  

Operating activities:

Net loss

(7,186)

(28,435)

(30,363)

Adjustments to reconcile net loss to net cash provided by operating activities:

  Depreciation of property, plant and equipment

454

1,904

1,949

  Amortization of land use right

8

36

36

  Amortization of acquired intangible assets

760

4,526

4,991

  Utilization of subsidy from local authorities of Zhuhai, the People's Republic of China ("PRC")

-

(1,159)

-

  Loss (Gain) on disposal of property, plant and equipment 

2

4

(1)

  Loss on disposal of intangible assets

-

-

420

  Share of net loss (income) of equity method investees

388

317

(564)

  Share-based  compensation

143

382

45

  Deferred tax

(228)

(147)

(3,576)

  Impairment loss recognised in respect of other investments

-

117

-

  Impairment loss recognised in respect of intangible assets

-

4,467

820

  Changes in operating assets and liabilities:

    Accounts receivable

(171)

(2,030)

2,907

    Amount due from a related party

290

424

(349)

    Inventories

4,367

1,329

5,904

    Amount due from an equity method investee

22

24

(3)

    Prepaid expenses and other current assets

2,203

(3,080)

(750)

    Accounts payable

(4,894)

(1,258)

(173)

    Amount due to a related party

73

139

259

    Accrued expenses and other current liabilities

943

(480)

(415)

    Income tax recoverable

-

186

(122)

    Income tax payable

-

-

1

    Rental deposit (paid) received 

-

(4)

5

    Note Receivables

-

161

(161)

Net cash used in operating activities

(2,826)

(22,577)

(19,140)

Investing activities:

  Investment in an equity method investee

-

-

(9,016)

  Proceeds from redemption of marketable securities

1,169

35,438

159,296

  Purchase of marketable securities

(573)

(10,151)

(54,290)

  Proceeds from disposal of property, plant and equipment

-

16

20

  Purchase of property, plant and equipment

(127)

(762)

(1,156)

  Purchase of intangible assets

(461)

(3,589)

(8,044)

  (Increase) decrease in time deposits

(154)

(184)

318

  Deposit paid for acquisition of intangible assets

-

-

(457)

  Increase in restricted deposits

(6,536)

(42,700)

(24,974)

  Proceeds from disposal of intangible assets

-

-

24

Net cash (used in) provided by investing activities

(6,682)

(21,932)

61,721

Financing activities:

  Advance subsidy from local authorities of Zhuhai, the PRC

128

1,357

232

  Distribution of government grant to third party

(296)

(296)

-

  Proceeds from exercise of share-based awards

1

763

2,542

  Repurchase of ordinary shares

(23)

(34,020)

(28,902)

  Raise of short-term bank loans

-

36,000

31,500

  Repayment of short-term bank loans

-

-

(22,000)

Net cash (used in) provided by financing activities

(190)

3,804

(16,628)

Net (decrease) increase in cash and cash equivalents

(9,698)

(40,705)

25,953

Cash and cash equivalents at the beginning of the period

46,564

78,177

53,263

Effect of exchange rate changes on cash

(604)

(1,210)

(1,039)

Cash and cash equivalents at the end of the period

36,262

36,262

78,177