Acer 2005 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... A TRANSLATION OF 2005 ANNUAL REPORT (THE "ANNUAL REPORT") OF ACER INCORPORATED (THE "COMPANY"). THE TRANSLATION IS INTENDED FOR REFERENCE ONLY AND NOTHING ELSE, THE COMPANY HEREBY DISCLAIMED ANY AND ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION. THE CHINESE TEXT OF THE ANNUAL REPORT SHALL GOVERN...

  • Page 3
    -2-

  • Page 4
    ... Management Center) 3. The Address and Contact way of Acer Shareholders Services Office Address ：7F, No.137, Sec.2, Chien Kuo N. Road, Taipei, Taiwan, R.O.C. Tel ：886-2-2509-2368 e-mail : [email protected] 4. The Address and Contact way of Auditing CPA in the Most Recent Year Name...

  • Page 5
    ... Financial Status if the Company or Affiliates Have Financial Difficulties in Recent Year and Cut Off by the Published Date of the Annual Report ...77 4.6 The Achievement of the Financial Prediction during the Most Recent Two Years...77 5. Risk Management 5.1 Recent Yearly Investment Policy and Main...

  • Page 6
    1. Business Report 1.1 2005 Operating Report 1.1.1 Operating result Unit: Thousand NT$ Year Item Item Operating Revenue Gross Profit Income from Continuing Operations Most recent 5-Year Financial Information 2001 -1,055,392 2002 2,192,633 2003 4,282,869 2004 5,659,766 2005 8,332,419 30,370,675 42,...

  • Page 7
    ... product lines. Thus, Acer has defined the U.S., China, and desktop PCs as the key-growth markets and product line. Exemplifying Acer's innovative caring brand personality, Acer shall persist in researching and developing Empowering Technology that enables our customers to benefit from technology...

  • Page 8
    ... will continue to dispose of non-core investments, and focus on the development of our IT products. Acer's Board of Directors has approved of the following financial targets for 2006: NT$400B (US$12.42B) in consolidated revenue, NT$13.3B (US$413.48M) in profit before tax (PBT), NT$10B (US$311.12M...

  • Page 9
    ... 1987 - 1995: Created a brand name and globalized 1996 - 2000: Fresh technology for everyone, everywhere 2001 - beyond: Transformed from manufacturing to services 1976 • Acer was founded under the name Multitech, focusing on trade and product design 1978 • Acer established the Microprocessor...

  • Page 10
    ... world's first dual Intel® Pentium® PC 1995 • The popular Aspire multimedia PC brought Acer closer to the consumer electronics market 1996 • Acer announced its commitment to providing fresh technology to be enjoyed by everyone, everywhere 1997 • Official groundbreaking ceremony was held for...

  • Page 11
    ...add value to customers' lives • Launch of TravelMate C100 Convertible Tablet PC, the first convertible Tablet PC available in the worldwide market 2003 • The next-generation Empowering Technology platform was launched, integrating hardware, software and service to provide end-to-end technologies...

  • Page 12
    ... sales volume • Acer became the world No. 3 brand for notebooks in Q4 2005 2006 • Acer was the first-to-market with a full line of Intel® Centrino® Duo mobile technology notebooks • Acer was voted Reader's Digest gold-medal Computer SuperBrand in Asia for the eighth consecutive year • Acer...

  • Page 13
    ... President Corporate Strategy Office Value Labs IT Products Business China Operations Taiwan & HK Operations Pan America Operations Asian Pacific Operations Europe, Middle East & Africa Operations Channel Business e-Enabling Services Business Finance Human Resources Information Technology...

  • Page 14
    .... Sales and market Acer's brand name IT products and services in pan America. Chief Financial Officer Responsible for Acer's financial management and investments. General Auditor Corporate Strategy Office IT Products Business Value Labs e-Enabling Services Business Channel Business China Operations...

  • Page 15
    ...Technology Services Corp. Director of E-life Mall Corp. Director of TWP Corporation Chairman of Acer Cyber Center Services Inc. Director of DCS Computer System Co., Ltd. Director of Minly Tech. Corp. Director of Weblink International Inc. Director of Dragon Investment Co., Ltd. Director of BenQ Corp...

  • Page 16
    ...position as the Key Managers, Directors or Supervisors RelationTitle Name ship Philip Pen (The Director representative 06/14/2005 of Smart Capital Corp.) 3 10,000 - 10,600 - - - Chairman of Cross Century Investment Director of Multiventure Investment Inc. Supervisor of Acer Laboratories Inc...

  • Page 17
    .... Director of Lottery Technology Services Corp. Chairman of EB-Easy Director of SYNQ Technology Inc. Bachelor Chairman of CTS Digi-Tech Co.,Ltd Vice-Chairman of Taiwan Fixed Network Co., Ltd. Supervisor of TFN Investment Co.,Ltd Vice-Chairman of Taiwan Hong Yuan Investment Co.,Ltd Director of Aspire...

  • Page 18
    ...DCS Computer System Co, LTD. Director of Acer Cyber Center Services Inc. Master ARC Consultants Ltd. Chairman of TWP Corp. Master Chairman of Weblink International Inc. Director of TWP Corp. Director of Lottery Technology Services Corp. Bachelor Chairman of Sertek Inc. Supervisor of E-life Mall Corp...

  • Page 19
    ... Capital Date Price of Issuance Authorized Common stock Shares Value Paid-in Common stock Shares Value 22,545,187 Unit: Share/Thousand NT$ Notes Source of the capital August, Share/ 2,800,000,000 2005 NT$10 28,000,000 2,254,518,705 Unit: Shares Shares Category Common shares Issued shares 2,254...

  • Page 20
    2.3.4 The List of Major Shareholders Shares Name JPMorgan Chase Bank, N.A.,Taipei Branch in Custoday for EuroPacific Growth Fund Hong Rong Investment Corp. Acer Incorporated Global Depositary Receipt Stan Shih National Financial Stabilization Fund Management Board of Public Service Pension Fund ...

  • Page 21
    ...NT$) 10,018,364 Change in Increase (decrease) of net profit after tax compared with business 18.18% preceding year performance Earning per share (EPS) (NT$) 4.3 Increase (decrease) of EPS compared with preceding year 12.27% Annual average return rate of investment (on grounds of annual 7.04% EPS) If...

  • Page 22
    ...,872,422 - - Stock Bonuses to employees (1) Number of Shares (2) Value (3) The rate of the circulation of shares in stock market on the ex-right day 3. Remunerations to directors, supervisors (2)The information of Earning Per Share ： 1. Earning Per Share 2. Set Earning Per Share 2. (1) 35,548...

  • Page 23
    2.4 The Secured Corporate Bonds in Taiwan Category of corporate bonds Date of issuance Par value Location of issuance and transaction Issuing price Total amount Interest Rate Per Annum Period Consignee Underwriter Verifying Attorney-at-Law Verifying CPA The Second secured corporate bonds in Taiwan ...

  • Page 24
    ... Highest US$12.8 2005 Lowest US$7.1604 Market Average US$9.0842 Price Per Highest US$13.00 Until Mar. Share 31th, 2006 Lowest US$9.00 2.7 Employee Stock Options: Not Applicable 2.8 Mergers, Acquisitions, and Issuance of New Shares Due to Acquisition of Shares of Other Companies: None - 19...

  • Page 25
    ...design computer information management systems. To research and develop, design, assemble, process, manufacture, inspect, test, buy and sell, lease or rent, provide maintenance services --or commission others to process --electrical components for the aerospace industry, electronic control equipment...

  • Page 26
    ... System Plan, Develop and sell Business. Server Plan, Develop and sell Business. CRT/LCD Monitor Plan, Develop and sell Business. Peripherals、DVD、Projector Plan, Develop and sell Business. Electronic IT Product & Service provider. IA & personal multimedia Plan, Develop and sell Business LCD TV...

  • Page 27
    ... Computer System (Desk-tops、Notebooks、 Provide open architecture Technology Handhelds、Tablets)、Servers & Storage、 consulting services; Product CRT Monitors、LCD Monitors、 network planning, set up Peripherals、DVD Players、Projectors、IA & and integration. Personal Multimedia、LCD TV...

  • Page 28
    ... empowers end-users to watch live TV anytime, anywhere. Supporting intuitive Acer Arcade multimedia portal - freeing users to Notebook Computers watch TV, listening to MP3 songs, playing DVD movies, browsing photos, ripping music or editing videos. A truly sensational media center to offer mobile...

  • Page 29
    ... Program Embedded GPS Handheld Devices eNet Management V2 Program LCD TVs LCD TVs LCD TVs Digital Office Technology or Product or Service Acer eNet Management auto-detects and connects to the access point (AP) with the strongest signal or via the support of plug and connect to LAN to offer mobile...

  • Page 30
    ... battery life. Research and develop 3G data wireless communication Notebook Computers solution in notebook computers. In order to meet diversified Digital Home Application, Interactive TV integrate Media Gateway function to provide Interactive TV platform by using SOC technology. Digital image...

  • Page 31
    ... of wireless device/portal and security. 3.2 Market and Continuous Growth 3.2.1 Market Analysis (1) Research of the company' s main products (and services), and sales in regions where the products are available. Unit: Thousands NT$ 2004 2005 Year Regions Sales revenues Percentage Sales revenues...

  • Page 32
    ...25.23 100.00 (5) Competitiveness The Company has completely transformed to a brand selling of the IT products and a professional electronic service company and actively adjusts the organization and supply chains. In year 2006, the Company will not only keep the PC business growing but also focus on...

  • Page 33
    ... "One-company, One-brand, One-Team" policy and "Multiple-Suppliers, Multiple-Products, Multiple-Channels" business models, with the global competitive experiences, possess empowering technology, speed, quality controls and have flexible supply chain management, risk management, win-win strategy, and...

  • Page 34
    ... investment of major public infrastructures by Taiwan government. 2.The IT industry has reached saturation level and profits are diminishing, there is tough competition between local and foreign brands. Solution: Implement the workable "New Channel Business Model" in the markets in the US and China...

  • Page 35
    ... Two Years: Not Applicable 3.2.4 The Sales Value in the Most Recent Two Years: Year Major production Computer Peripherals & Others Total 2004 Domestic Sales Foreign Sales 3,673,499 8,494,873 12,168,372 97,478,867 19,461,458 116,940,325 Unit: Thousand NT$ 2005 Domestic Foreign Sales Sales 7,260...

  • Page 36
    ...In order to receive updated worldwide environmental protection information, the Company and IER have continued coordinating closely and planning an environmental strategy for promoting the Company's management system. The plans include environmental communication, environmental trainings and writing...

  • Page 37
    ...Financial Standing 4.1 Most Recent 5-Year Concise Financial Information 4.1.1 Most Recent 5-Year Balance Sheet Date: March 31, 2006 Unit: Thousand NT$ Period Item Current assets Fund and Long-term equity investments Net property, plant and equipment...equity adjustment Treasury Stock Total assets ...

  • Page 38
    ... Recent 5-Year Concise Income Statement Date: March 31, 2006 Unit: Thousand NT$ Most recent 5-Year Financial Information(Note) 2001 2002 2003 2004 2005 Current year as of Mar. 31, 2006 54,802,455 2,286,771 1,602,323 50,599 15,178 4,611,018 4,021,150 1.82 - Operating revenue Gross profit Operating...

  • Page 39
    ...) Ability to operate Inventory turnover days Fixed assets turnover (times) Total assets turnover (times) Return on assets(ï¼...) Return on equity(ï¼...) To pay-in Earning ability capital ï¼... Operating income PBT 2001 NT$ 31.47 Most recent 5-Year Financial Information 2002 NT$ 26.02 2003 NT$ 33.24 2004...

  • Page 40
    ...＝Net sales／the Average of account receivable (including account receivable and notes receivable from operation) balance (2) A/R turnover day＝365／account receivable turnover (3) Inventory turnover＝Cost of Goods Sold／the average of inventory (4) Account payable (including account payable...

  • Page 41
    ...: The 2006 General Shareholders Meeting The Board of Directors of the Company has prepared the 2005 financial report, including balance sheet, statement of income, statements of changes in stockholders' equity, and statement of cash flows, and Sonia Chang and Winston Yu at KPMG has been retained by...

  • Page 42
    4.4 Financial Statements Consolidated With Subsidiaries Audited by CPA of the Recent Year Audit Report of Independent Certified Public Accountants The Board of Directors Acer Incorporated: We have audited the consolidated balance sheets of Acer Incorporated (the "Company") and subsidiaries as of ...

  • Page 43
    ... time deposits (note 6) Total current assets Long-term equity investments (notes 4(6)(17) and 6) Accounted for using equity method Accounted for using cost method or lower-of-cost-or-market-value method Total long-term equity investments Property and equipment (notes 4(7) and 6) Land Buildings...

  • Page 44
    ... Consolidated Statements of Income For the years ended December 31, 2004 and 2005 (in thousands of New Taiwan dollars and US dollars, except per share data) 2004 NT$ Revenues (note 5) Cost of revenues (note 5) Gross profit Operating expenses (note 10) Selling Administrative Research and development...

  • Page 45
    ... to common stock 1,004,816 Cash dividends Directors' and supervisors' remuneration Employees' bonuses in cash Change in unrealized loss on long-term equity investments Cash dividends distributed to subsidiaries Increase in capital surplus resulting from long-term equity investments accounted for by...

  • Page 46
    ... Payment of long-term debt Payment of cash dividends, employee' s bonus and directors' and supervisors' remuneration Repurchase of common stock Increase (decrease) in deposits received Cash used in financing activities Net increase in cash and cash equivalents Effects of exchange rate changes Cash...

  • Page 47
    ... the years ended December 31, 2004 and 2005 (amounts expressed in thousands of New Taiwan dollars and US dollars, except for per share information and unless otherwise noted) 1. Reporting Entities of the Consolidated Financial Statements and Their Business Scopes Acer Sertek Inc. (the "Company") was...

  • Page 48
    ...", Russia) AEH y Acer Computer (M.E.) Ltd. ("AME", United AEH Arab Emirates) and its subsidiaries y Acer Africa Pty Ltd. ("AAF", South Africa) AEH (4) Boardwalk Capital Holding Limited The Company ("ACLAH", British Virgin Islands) and its subsidiaries y Acer America Corporation ("AAC", U.S.A.) ACLAH...

  • Page 49
    ...International, Incorporated The Company ("AHI", British Virgin Islands) and its subsidiaries y Acer Computer Co., Ltd. ("ATH", Thailand) AHI y Acer Japan Corporation ("AJC", Japan) AHI y Acer Computer Australia Pty Ltd. ("ACA", AHI Australia) y Acer Sales and Service Sdn. Bhd. AHI ("ASSSB", Malaysia...

  • Page 50
    (c) Research, design, manufacture and sale of memory modules and consumer electronic products: Percentage of Ownership by the Company at December 31, 2004 2005 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 54.33 Investor (1) Apacer Technology Inc. ("AMT...

  • Page 51
    ... 56.00 100.00 60.00 (g) Software research, development, design, trading and consultation: (1) Maxmars Data Corp. ("MDC", Taiwan) ADSC (2) Zhongshan Maxmars Software Corp. ("ZMS", MDC China) The Company (3) TWP Corporation ("TWP", Taiwan) (4) BRAVO Information Technology Co., Ltd. TWP ("BIT", Taiwan...

  • Page 52
    ... potential interest rate changes. (d) Short-term investments Short-term investments are accounted for at acquisition cost and are stated at the lower of cost or market value. Related valuation losses are recorded as non-operating losses. The market value used for publicly listed stocks and domestic...

  • Page 53
    (f) Inventories; land held for sale and development Inventories are stated at the lower of cost or market value. For Acer brand name information technology business, costs of inventory are determined using the weighted-average method. For channel business, costs of inventory are determined using the...

  • Page 54
    ... consist of additions and improvements to office buildings. These costs are amortized using the straight-line method over their estimated useful lives. (l) Asset impairment Effective January 1, 2005, the Consolidated Companies adopted ROC Statement of Financial Accounting Standards No. 35 ("SFAS 35...

  • Page 55
    ... earnings in the following year. (q) Treasury stock The Consolidated Companies account for the their purchase of the Company' s outstanding stock as "treasury stock" and include the treasury stock as a component of stockholders' equity in the accompanying consolidated balance sheet. Upon disposal of...

  • Page 56
    ... or loss over the term of the contract. Forward contracts that hedge the foreign currency exposures of anticipated sale and purchase transactions are valued by their fair value at the balance sheet date and are recorded in the balance sheet as other financial assets or other liabilities. Changes in...

  • Page 57
    ...or their foreign subsidiaries and purchased back the finished goods after being manufactured by them. To advoid overstatement of revenues, sales of raw material to OEMs amounting to NT$53,875,498 and NT$103,324,407, respectively, for the years ended December 31, 2004 and 2005, were excluded from the...

  • Page 58
    ..., 2004 NT$ Raw materials Work in process Finished goods Spare parts Inventories in transit Land and buildings held for sale Construction in process Provision for loss on obsolescence and price decline 2,457,514 115,570 7,564,855 1,488,898 2,687,265 109,180 532 December 31, 2005 NT$ US$ 5,320,857 58...

  • Page 59
    ...-cost-or-market method: Gravel Advance Technology Ltd. National Securities Corp Prosperity Venture Capital Corp Sheng-Hua Venture Capital Corp Legend Technology Taiwan Fixed Network Co., Ltd. ("TFNC") W.I. Harper International Corp. Granal Tech C.G. Systems Inc. China Development Technology Co., Ltd...

  • Page 60
    ... E2 Open LLC IP Fund III GE Fund Harmonix Music System Octasoft Corporation Origin Partners Routefree Silicon Storage Technology Inc. Sino Century VC iD5 Fund LTP Ven Global Capital International Fund Yesmobile Technology Holding Other Less: Allowance for devaluation of long-term investments Total...

  • Page 61
    ... Inc. ("Interserv") Shanghai Kingstar Media Co., Ltd. Asia Chen Tung Co., Ltd. Soung Kon Tech Co., Ltd. World Venture, Inc. iD Reengineering Inc. DYNA Fund DYNA Fund II E2 Open LLC IP Fund III GE Fund Harmonix Music System Origin Partners Routefree Silicon Storage Technology Inc. Sino Century VC iD5...

  • Page 62
    ... from these sales. Partial values of long-term investments using the cost or lower-of-cost-or-market method were impaired. The impaired amounts amounting to NT$628,587 and NT$824,242 for the years ended December 31, 2004 and 2005, respectively, were recorded as "other investment losses" in the...

  • Page 63
    ... land as "property not used in operation". As of December 31, 2005, management of the Company estimated that approximately NT$116,308 of losses will not be indemnified by the insurance company. The amount was recognized as "other current liabilities" in the accompanying consolidated balance sheet...

  • Page 64
    ...December 12, 2000. The maturity date is five years subsequent to the issuance date. Interest is paid annually, and principal is paid in whole at maturity. The bonds are secured by common shares of BenQ and TSMC owned by the Company. As of December 21, 2005, the Company redeemed the bonds at maturity...

  • Page 65
    ... "other liabilities" in the accompanying consolidated balance sheets. The components of the net periodic pension cost for 2004 and 2005 were as follows: 2004 2005 NT$ NT$ US$ Service cost 59,947 54,309 Interest cost 25,726 29,974 Actual return on plan assets (8,687) (7,769) Amortization and deferral...

  • Page 66
    ... (253,924) (483,488) (14,725) Investment tax credits 540,184 (145,170) (4,421) Gain on disposal of marketable securities not subject to income tax (1,611,090) (1,340,876) (40,837) (Gain) loss on disposal of land not subject (40,758) 62,786 1,912 to income tax Prior year adjustments 153,107 (289,337...

  • Page 67
    ... and equipment purchases, research and development expenditures and employee training). Generally, any unused tax credits can be carried forward for the next four years. As of December 31, 2005, unused investment tax credits available to the Consolidated Companies were as follows: Expiration date NT...

  • Page 68
    ...into 60,800,000 shares of the Company' s common stock issued for the merger. According to SFC regulations, treasury stock for the purpose of the employee stock option plan should be transferred to qualified employees within three years from the date of repurchase. The Company should reregister those...

  • Page 69
    ... process has been completed. In 2004, in order to protect the shareholders' interest, the Company purchased and retired treasury stock in accordance with the Securities Exchange Law, Article 28-2, as follows (expressed in thousands of shares and New Taiwan dollars): 2004 Number of Amounts shares...

  • Page 70
    ...2005 NT$ US$ 267,954 1,253,402 38,173 30,552,133 930,475 30,541,968 According to the ROC Company Law, with the exception of capital surplus originating from long-term equity investments accounted for by the equity method, any realized capital surplus could be transferred to common stock as stock...

  • Page 71
    ... Company' s directors' and shareholders' resolutions. After the resolutions, related information can be obtained from the public information website. (16) Earnings Per Common Share ("EPS") 2004 NT$ Basic EPS: Net income Weighted-average number of shares outstanding during the year (thousand shares...

  • Page 72
    ... their existing foreign currency exposures and anticipated cash flows. The market risk related to the changes in exchange rates is not considered significant. (b) As of December 31, 2004 and 2005, the Consolidated Companies had the following forward contracts outstanding: December 31, 2004 Notional...

  • Page 73
    ...,860 for 2004 and 2005, respectively, were charged to profit and loss accounts. The fair value of derivative financial instruments represents the estimated amount that the Consolidated Companies would receive or pay to terminate the contracts at the balance sheet date, generally including unrealized...

  • Page 74
    ... to estimate the fair value of each class of financial instruments: (i) Short-term investments Publicly quoted market prices are used as fair value. (ii) Long-term equity investments The fair values of long-term equity investments are based on quoted market prices. Management believes that it is not...

  • Page 75
    ...,788 396,799 12,085 2,960,667 90,168 4,595,010 Trading terms with related parties are not significantly different from the terms with third-party customers. 2. In 2005, the Consolidated Company sold a parcel of land located in Aspire Industry Park to AU for 2.8 billion. The gain on disposal amounted...

  • Page 76
    ... 2,796 261,862 (3) Management service fees In 2005, the Company paid iD softcapital Inc. management service fees amounting to NT$75,738. (4) Transfer and spin-off of assets On February 28, 2002, AI spun off its design, manufacturing and services business from its Acer brand business and transferred...

  • Page 77
    ... with IBM in October 2003. The license period is 5 years. The license mainly states that both parties have the rights to make use of either party' s global technological patents to manufacture and sell personal computer products. The Company agrees to make fixed payments periodically to IBM, and the...

  • Page 78
    ... TWP, sold its online game business of entities located in Taiwan, China, and Hong Kong to GigaMedia Limited and GigaMedia' s affiliates. The selling price amounted to approximately NT$1.48 billion. (b) On March 28, 2005, the Company' s subsidiary, AAC, sold its land and buildings to a non-affiliate...

  • Page 79
    ... segment data as of and for the years ended December 31, 2004 and 2005, is summarized below: 2004 Information technology products NT$ Segment income: Customers Inter-company Investment income Gain on disposal of investments Total income Segment profit (loss) before income taxes Net investment income...

  • Page 80
    ... technology products segment of the Company are listed below: Investee Year Book value of long-term Investment income (loss) investment NT$ NT$ Wistron (Taiwan) 2005 6,075,929 1,188,970 2004 6,546,120 (347,816) (b) Geographic information Information by geographic area as of and the years ended...

  • Page 81
    2005 North Taiwan NT$ America NT$ Europe NT$ Other NT$ Eliminations NT$ Consolidated NT$ Area income: Customers Inter-company 82,646,021 176,533,231 259,179,252 Investment income Gain on disposal of investments Total income Area profit (loss) before income taxes Net investment income Gain on ...

  • Page 82
    ... in the company's financial status if the company or affiliates have financial difficulties in recent year and cut off by the published date of the annual report: Not Applicable 4.6 The Achievement of the Financial Prediction in the Most Recent Two Years 4.6.1 Financial Forecast of Year 2004 Unit...

  • Page 83
    ... company Data storage and processing company Sales and Maintenance of "Acer" brand-name information technology products Investing on industry of sales computer and information technology products Selling channels of computers and related products Investing on industry of manufacturing computer...

  • Page 84
    ... nor long term USD liability, and only temporary gap on the big payment date. Exchange rate: The major foreign currency position of the Company is Euro receipt. Euro was trading in a range in year 2005. Under the suitable hedge tools utilization and stop loss strategy, there is no FX loss but small...

  • Page 85
    ...Internet Time Email Receiving stage Protocol. Devices 2.The Completeness of software integrated and test Product design US$2M Oct./2006 1. The acceptance level of 3G Develop 3G data wireless stage products in the market. communication solution in 2. The strategic alliance with the notebook computers...

  • Page 86
    ...with first tier channels. 5.2.6 How corporate image change affects the Company's risk management mechanism? What are the Company's action plans? The Company had split off its manufacturing division at the end of year 2000 in order to focus on the design and marketing of IT products and services. The...

  • Page 87
    ... to the Company during buy and sales? NONE 5.2.10 How shares transfer made by directors, supervisors or shareholders with 10% or more shareholdings affect the Company? Not applicable. 5.2.11 What are the impact and potential risks when the Company changes management team? Not applicable. 5.2.12...

  • Page 88
    ... CPA main duties of Financial Statement and Internal Control Review Committee C. The composition and duties of supervisors a. The election of independent supervisors b. The communication between supervisors and employees and shareholders None The Company has established an appropriate channel for...

  • Page 89
    ... e-mail box ([email protected]), environmental web, and published Corporate Environmental Report. z The Company has set up an exclusive web for new labor pension system in order to offer employees related laws, regulations, and assistance. I. Other important information that may facilitate to better...