| 17. |
|
RELATED PARTY TRANSACTION |
The principal related parties with which the Group had transactions during the years presented are as follows:
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|
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|
Name of Related parties |
|
Relationship with the Group |
| Ningbo Sunny Opotech Co. Ltd |
|
Non-controlling shareholder of Visiondigi |
| Individual Shareholders of Visiondigi |
|
Non-controlling shareholders of Visiondigi |
| Tianjin SAMC |
|
Non-controlling shareholder of Vimicro Tianjin |
| Vimicro Wuxi |
|
5% equity investee of the Company |
| VMF Consulting Company |
|
Owned by certain executives of the Company |
| Vimicro Qingdao |
|
18% direct equity investee of the Company |
(a) The Group had the following related party transactions:
(1) In December 2010, the Company disposed of 95% of equity interest in Vimicro Wuxi to VMF Consulting Company, a related party. As a result, as at December 31, 2011, the Company owned 5% of Vimicro Wuxi after it finished the registration of change of ownership at the end of 2010. The purpose of the transfer is to focus on the new growing surveillance business by divesting the Non-core IC Business and land use rights.
Under the terms of the arrangement, VMF Consulting Company paid Vimicro China for cash consideration of $1.7 million and received $0.3 million from Vimicro China for services in connection with the disposal of equity interest in 2011.
(2) The non-controlling shareholders of Visiondigi extended a loan of RMB1,760 ($266) to Visiondigi in 2010 that was non-interest bearing. The loan balance was RMB963 ($145) as of December 31, 2010 and was fully repaid by December 31, 2011.
(3) The Group also had related party transactions for the years ended December 31, 2009, 2010 and 2011 summarized in below table.
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|
Years Ended December 31 |
|
| |
|
2009 |
|
|
2010 |
|
|
2011 |
|
|
Sales of goods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ningbo Sunny Opotech Co. Ltd |
|
|
— |
|
|
|
329 |
|
|
|
72 |
|
|
Vimicro Qingdao |
|
|
— |
|
|
|
— |
|
|
|
4,193 |
|
|
Vimicro Wuxi |
|
|
— |
|
|
|
2,589 |
|
|
|
— |
|
|
Purchase of inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ningbo Sunny Opotech Co. Ltd. |
|
|
— |
|
|
|
391 |
|
|
|
63 |
|
|
Technical Service fee rendered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vimicro Wuxi |
|
|
— |
|
|
|
175 |
|
|
|
— |
|
|
Technical Service fee received: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vimicro Wuxi |
|
|
— |
|
|
|
— |
|
|
|
175 |
|
|
Loan from related parties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vimicro Wuxi |
|
|
— |
|
|
|
11,325 |
|
|
|
— |
|
|
Repayment of loan from related parties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vimicro Wuxi |
|
|
— |
|
|
|
6,795 |
|
|
|
— |
|
|
Proceeds from sale of equity interest in discontinued operation |
|
|
|
|
|
|
|
|
|
|
|
|
|
VMF Consulting |
|
|
— |
|
|
|
— |
|
|
|
1,734 |
|
|
Proceeds from disposal of assets in discontinued operation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vimicro Wuxi |
|
|
— |
|
|
|
— |
|
|
|
4,955 |
|
| (b) |
The Group had the following related party balances as of December 31, 2010 and 2011: |
| |
|
|
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|
|
|
|
|
| |
|
As of December 31 |
|
| |
|
2010 |
|
|
2011 |
|
|
Amounts due from related parties: |
|
|
|
|
|
|
|
|
|
Vimicro Qingdao |
|
|
— |
|
|
|
4,257 |
|
|
VMF Consulting Company |
|
|
1,651 |
|
|
|
— |
|
|
Vimicro Wuxi |
|
|
8,751 |
|
|
|
477 |
|
|
Tianjin SAMC |
|
|
59 |
|
|
|
97 |
|
|
Ningbo Sunny Opotech Co. Ltd |
|
|
2 |
|
|
|
— |
|
|
Individual shareholders of Visiondigi |
|
|
2 |
|
|
|
— |
|
| |
|
|
|
|
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|
|
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Total |
|
|
10,465 |
|
|
|
4,831 |
|
| |
|
|
|
|
|
|
|
|
|
Amounts due to related parties: |
|
|
|
|
|
|
|
|
|
Vimicro Wuxi |
|
|
4,532 |
|
|
|
676 |
|
|
Individual shareholders of Visiondigi |
|
|
145 |
|
|
|
— |
|
|
Ningbo Sunny Opotech Co. Ltd |
|
|
171 |
|
|
|
287 |
|
| |
|
|
|
|
|
|
|
|
|
Total |
|
|
4,848 |
|
|
|
963 |
|
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