ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Year ended

Year ended

December 31,

December 31,

December 31,

2013

2013

2012

(unaudited)

  (unaudited)  

  (audited)  

Operating activities:

Net (loss) income 

(826)

121

(2,210)

Adjustments to reconcile net (loss) income provided by

  Operating activities:

  Depreciation of property, plant and equipment

508

2,072

2,290

  Amortization of land use right

9

36

36

  Amortization of acquired intangible assets

923

3,480

3,056

  Utilization of subsidy from local authorities of Zhuhai, 

  the People's Republic of China ("PRC")

(846)

(1,068)

(674)

  Write down of inventories

282

865

180

  Loss on disposal of property, plant and equipment 

-

-

5

  Share of net loss (income) of equity method investees

82

264

(41)

  Share-based compensation

102

492

1,465

  Fair value change in trading securities

-

-

(2)

  Deferred taxes

94

279

454

  Proceeds from disposal of trading securities

-

-

459

  Dividend income from an other investment

-

(493)

-

  Impairment loss recognised in respect of other investments

681

681

2,543

  Changes in operating assets and liabilities:

    Accounts receivable

1,525

195

(3,150)

    Notes receivable

37

-

-

    Amount due from a related party

(1,301)

(961)

(331)

    Inventories

5,062

(8,686)

(4,510)

    Amount due from an equity method investee

37

41

(14)

    Prepaid expenses and other current assets

(930)

5,922

(2,549)

    Accounts payable

(330)

(2,198)

3,598

    Accrued expenses and other current liabilities

348

(3,051)

(3,526)

    Income tax recoverable

13

123

(189)

    Income tax payable

1

2

(190)

    Rental deposit received (paid) 

5

(11)

4

Net cash provided by (used in) operating activities

5,476

(1,895)

(3,296)

Investing activities:

  Investment in an equity method investee

-

(3,712)

(1,500)

  Proceeds from redemption of marketable securities

13,434

112,966

178,975

  Purchase of marketable securities

(30,529)

(113,329)

(132,376)

  Proceeds from disposal of property, plant and equipment

25

41

22

  Purchase of property, plant and equipment

(340)

(862)

(249)

  Purchase of intangible assets

(1,199)

(3,884)

(1,081)

  Deposit paid for acquisition of intangible assets

(145)

(904)

-

  Increase in time deposits 

(5,960)

(17,159)

(10,000)

Net cash (used in) provided by investing activities

(24,714)

Financing activities:

  Proceeds from short-term bank loans

5,000

10,000

8,500

  Advance subsidy from local authorities of Zhuhai, the PRC

412

714

299

  Proceeds from exercise of share option and restricted stock unit

471

3,041

2,289

  Repurchase of ordinary shares

(1,845)

(4,853)

(4,152)

Net cash provided by financing activities

4,038

8,902

6,936

Net (decrease) increase in cash and cash equivalents

(15,200)

(19,836)

37,431

Cash and cash equivalents at the beginning of the period

67,884

71,336

33,207

Effect of exchange rate changes on cash

579

1,763

698

Cash and cash equivalents at the end of the period

53,263

53,263

71,336