ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Six months ended

Six months ended

June 30,

June 30,

June 30,

2016

2016

2015

(unaudited)

  (unaudited)  

  (unaudited)  

Operating activities:

Net Loss

(7,910)

(11,851)

(8,683)

Adjustments to reconcile net loss to net cash provided by

  Operating activities:

  Depreciation of property, plant and equipment

435

875

940

  Amortization of land use right

7

15

19

  Amortization of acquired intangible assets

812

1,573

2,488

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

(187)

(187)

(1,135)

  Gain on disposal of property, plant and equipment 

(33)

(16)

-

  Loss on disposal of intangible assets

-

24

-

  Write down of inventories

1,267

1,267

-

  Share of net loss (income) of equity method investees

32

(31)

137

  Share-based  compensation

147

285

79

  Deferred taxes

(17)

95

(61)

  Dividend income from an other investment

-

-

(488)

  Impairment loss recognised in respect of long-lived assets

2,958

2,958

-

  Other-than-temporary impairment loss on an other investment

-

-

117

  Changes in operating assets and liabilities:

    Accounts receivable

(24)

124

(409)

    Amount due from a related party

813

785

373

    Amount due from an equity method investee

7

2

(12)

    Inventories

(1,721)

(1,574)

(1,588)

    Prepaid expenses and other current assets

(1,349)

(1,206)

(2,911)

    Accounts payable

2,493

3,690

2,858

    Accrued expenses and other current liabilities

116

(1,652)

(1,116)

    Amount due to a related party

700

549

(130)

    Income tax recoverable

-

-

32

    Rental deposit received (paid) 

3

-

(4)

    Notes Receivable

-

-

161

Net cash used in operating activities

(1,451)

(4,275)

(9,333)

Investing activities:

  Dividend income from an other investment

-

-

488

  Proceeds from redemption of marketable securities

6,769

8,782

-

  Purchase of marketable securities

(5,326)

(14,910)

(8,140)

  Proceeds from disposal of property, plant and equipment

38

38

-

  Purchase of property, plant and equipment

(59)

(192)

(492)

  Purchase of intangible assets

(107)

(473)

(2,788)

  Decrease (increase) in restricted deposits

1,203

30,427

(76)

  Increase in time deposit

-

-

(30)

Net cash provided by (used in) investing activities

2,518

23,672

(11,038)

Financing activities:

  Advance subsidy from local authorities of Zhuhai, the PRC

362

362

269

  Proceeds from exercise of share based awards

-

4

717

  Repurchase of ordinary shares

-

(15)

(1,513)

  Raise of short-term bank loans

5,000

30,000

-

  Repayment of short-term bank loans

(5,000)

(50,000)

-

Net cash provided by (used in) financing activities

362

(19,649)

(527)

Net increase (decrease) in cash and cash equivalents

1,429

(252)

(20,898)

Cash and cash equivalents at the beginning of the period

34,667

36,262

78,177

Effect of exchange rate changes on cash

(810)

(724)

71

Cash and cash equivalents at the end of the period

35,286

35,286

57,350