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321
2357
ASUSTeK Computer Inc.
2008 ANNUAL REPORT
yTaiwan Stock Exchange Market Observation Post SystemǺhttp://newmops.twse.com.tw
yASUS annual report is available at http://taiwan.asus.com.tw/investor.aspx
Printed on April 23rd 2009

Table of contents

  • Page 1
    2357 ASUSTeK Computer Inc. 2008 ANNUAL REPORT yTaiwan Stock Exchange Market Observation Post SystemǺhttp://newmops.twse.com.tw yASUS annual report is available at http://taiwan.asus.com.tw/investor.aspx Printed on April 23rd 2009 321

  • Page 2
    ... Website : http://www.toptrade.com.tw IV. AUDITORS Name :CPA: MING-YU LEE & CHIH-HUEI YANG CPA Firm :ERNST & YOUNG Address : 9F, 333, Sec. 1, Keelung Road, Taipei City Tel. :886(2)2720-4000 E-mail : http://www.ey.com/tw V. EXCHANGEABLE BOND EXCHANGE MARKETPLACE Marketable security: GDR London Stock...

  • Page 3
    ... of the company ...1. Approval date ...2. Development history ...III. Corporate governance report ...1. Organization of company ...2. Directors, Supervisors, President, Vice President, Assistant V.P., and department heads...3. Corporate gavernance ...4. CPAs fees ...5. CPA' s information ...6. The...

  • Page 4
    VI. Financial information ...1. Condensed balance sheet and income statement over the last five years ...2. Financial analysis in the past five years ...3. Supervisor' s report in the most recent years ...4. Financial statements in the most recent years ...5. Consolidated financial statements in the...

  • Page 5
    ... the United States. After spreading quickly worldwide to engulf the entire financial system, the global economy was hit by the crisis which in turn affected a wide range of industries. Even the information industry could not avoid its impact. In 2008, consolidated sales revenue for the ASUS Computer...

  • Page 6
    ...shined internationally, profits at ASUS did not meet expectations due to the financial crisis, economic decline and poor business management. In 2008, profits at ASUS declined ending five years of consecutive growth. In addition, for the first time since the establishment of the company, ASUS failed...

  • Page 7
    ... the most admired company in this new digital age. According to the industrial status and the forecast of each business entity, the goal is to sell 12 million units of NB (included Eee PC). We would like to thank you for your support. ASUS will sure work hard to achieve the sales target for the...

  • Page 8
    ...become the major product of the company. Substantiated management team and reinforced marketing ability with multiple marketing and sales talents recruited by the company. The sales of high unit price EISA 486 product were satisfactory and the said product had helped the company generate millions of...

  • Page 9
    ... Taiwanese information business to develop the fastest personal computer synchronized with the world that has helped Taiwan open up a path to the successes and helped define the competition of speed and flexibility in technology development." Mass production of PCI486 and Pentium motherboard was...

  • Page 10
    ... July gets up changes the name officially as ASUSTeK Computer Inc. Increased the paid-in capital to NT$450.337 million with retained earnings. Setup subsidiary in the United States and Germany for marketing, service, and repair and maintenance. China Development Industrial Bank became the institute...

  • Page 11
    ... 1998 November 1998 November 1998 December 1998 December 1998 Asiamoney awarded the company as "Best Managed Companies in Taiwan." Finance Asia awarded the company as "Asia' s Strongest Companies." Increased the paid-in capital to NT$8.115 billion with retained earnings. Monthly income exceeded...

  • Page 12
    ... special issue of Commonwealth Magazine. China Credit Information Service Ltd. awarded the company with the honorary citation of "1999 Taiwan TOP 500." China Credit Information Service Ltd. ranked the company in the fourth place as the most profitable business of "1999 Taiwan TOP 500." China Credit...

  • Page 13
    ...3G foldable color phone J100. DiGiMatrix was awarded with "Taiwan Outstanding Design Award" in 2003. The consolidated income of the year amounted to NT$195.889 billion representing a substantial growth in sales. April 2004 May 2004 Setup TPC product line (thermal conduction, power, and chassis) to...

  • Page 14
    ... nominated products awarded. ASUS W1 NB was awarded by iF (Germany) with industrial design award that was known as Oscar Award in computer business. This was the first Chinese design awarded with iF. Invested in AzureWave Technologies, Inc., the subsidiary, to manufacture office machine, electronic...

  • Page 15
    ... for the outstanding function and fashionable and elegant design. ASUS NB W2, W3, and V6 were nominated for "iF China, Design award" Top-10. A great achievement of the company to share and it did evidence the leading position of ASUS in computer world. Business Weekly awarded ASUS with InfoTech 100...

  • Page 16
    ...of 3C product this year. ASUS has Eee PC S101, the stat-of-the-art; market launched this month targeting on global business commuters and fashion Yapese. ASUS Eee Family promoted new products, all-in-one touch-panel screen computer Eee Top ET16 series with 15.6" touch big screen. The computer can be...

  • Page 17
    ..., ASUS Computer and the world leading GPS brand Garmin announced the establishment of a strategic alliance to launch a joint Garmin - ASUS brand smart phone that combines leading smart phone and GPS technology. The top-three best sellers of Amazon in the United States were ASUS Eee PCâ„¢ series. The...

  • Page 18
    III. Corporate governance report I. Corporate Organization (I) Organization Chart 14 14

  • Page 19
    ...company' s business, finance, bookkeeping, and raw materials; also, maintain and control global networking linking and safety control mechanism. R&D Center Develop the common R&D technology need by each business unit. Marketing Marketing is responsible for promoting, marketing, and managing products...

  • Page 20
    ...2008.06 3 2008.06 NCTU Electrophysics 0 Junior V.P. of Sales, Silicon Integrated Systems Corp. Electronics Engineering Graduate 0 Institute, Tufus University (USA) Junior V.P. of ACERʳ ʳ Department Of Mathematics, Tamkang 0 University Specialist of Shi-Chin Industry Ph.D of Business Management...

  • Page 21
    ... ASUS COMPUTER Benelux B.V., ASUS POLSKA SP.z.o.o., ASUS Marketing Services Kft. and ASUSTEK ITALY S.R.L. Note 7: Director of the following companies: Yangtze Associates, Huiyang Private Equity Fund Co., Ltd, RITEK CORPORATION, Bridgewell Incorporation, VIS, EZ Travel Co., Ltd, FAT Venture Capital...

  • Page 22
    ... the legal shareholder that holds over 5% of total stock issued directly or indirectly; or on the top-five shareholdings list of the Company; Ȑ6È'Not a Director (executive), Supervisor, management, or a shareholder with over 5% shareholdings of a company or organization that is in business with the...

  • Page 23
    ... Tung University Business Division' s President of ACER Shareholding of spouse and minor Shares % Shares % Name Jonathan Branding Officer Chief Note 2 Branding Officer Note 3 None Tsang Shares held by other persons in their name Current Executives who are spouses position or second consanguinity...

  • Page 24
    ... ASUS TECHNOLOGY PTE LTD., ASUS TECHNOLOGY (HONG KONG) LIMITED, ASUS Technology Holland B.V., ASUS Technology (Vietnam) Co., LTD., ASUS Middle East FZCO, ASUS KOREA Co., Ltd. and ASUS TECHNOLOGY PRIVATE LIMITED Director of the following companies: Axus Microsystems Inc., Hua-Cheng Venture Capital...

  • Page 25
    ... dividend dividend dividend Stock Cash Stock dividend the the in the Companies in the consolidated financial statements The The The The consolidated consolidated consolidated company company company company financial statements The The consolidated company company statements company financial...

  • Page 26
    ..., Ted Hsu, Jason Cheng Jonathan Tsang, H.C. Hung, Tony Chen Jonney Shih, Jerry Shen Jonathan Tsang, H.C. Hung, Tony Chen, Eric Chen Jonney Shih, Jerry Shen Remuneration to directors A+B+C+D Companies in the consolidated financial statements (I) Jason Cheng H.C. Hung, Ivan Ho, Tony Chen, Eric Chen...

  • Page 27
    ... company company! statements! financial financial financial financial subsidiary! statements statements statements statements Supervisor Supervisor Tze-Kaing Yang! Chung-Jen Cheng! 0 0 0 0.01% 0 2,401 2,671 Thousand Thousand 0 0 0.01% None Supervisor L.H. Yang Remuneration Bracket Name...

  • Page 28
    ...the consolidated consolidated company company Cash Stock Stock company' s financial financial Cash dividend dividend dividend dividend subsidiary statements statements Chief Branding Officer Jonney Shih Deputy Chief Branding Officer Jonathan Tsang President Jerry Shen V.P. H.C. Hung V.P. Tony...

  • Page 29
    ... ratio in the year before. The listed/OTC company is to have the stock dividend amount calculated according to the fair value (the closing price on the Balance Sheet date) in accordance with the Regulations Governing the Preparation of Financial Statements by Securities Issuers. Net income...

  • Page 30
    ... (I) Board of Directors Board of Directors The attendance of Directors for the 9 (A) Board Meeting in 2008 (three meetings before the re-election and 6 times after the re-election):! Title Chairman Vice Chairman Director Director Director Director Director Name Jonney Shih Jonathan Tsang Jerry Shen...

  • Page 31
    .... 2. Supervisors may communicate with the CPA if it is necessary. II. For the opinions of the supervisors stated in the board meeting, the date, term, the content of the case, the resolution reached, and the company' s response to the supervisor' s opinion must be stated in details: None ! ! 27...

  • Page 32
    ...financial 1.The company has a website setup to disclose financial information No deviation information and business management and business management (relationship with investors) and to explain the corporate governance of the company to the investors in the shareholders meeting and public offering...

  • Page 33
    ... the "Rules governing Listed/OTC corporate governance," please state the variation of the business operation from the rules: ! The company' s corporate governance rules are in planning; however, directors and supervisors have exercised their obligations and internal control system in accordance with...

  • Page 34
    ... of the indexes used for assessing enterprise' s perpetual development, ASUS' s responsibility for social environment, in addition to the original environmental management including air, sewage, waste, hazard substance, noise, and energy-saving measures and control includes labor safety and health...

  • Page 35
    ...corporate social responsibility. The action plan includes: 1.ASUS is the first one to join Taipei Environmental Protection Volunteers Squad in the name of the company to help with the community environmental protection, to fulfill the social responsibility of green enterprises, and to share the task...

  • Page 36
    8.ASUS Foundation and public TV worked together in November 2008 on "Environmental Protection 99 for Long-lasting Beauty of the Earth" activity. ASUS has activated the "Reversal Logistics Recycling Green Marketing Development Project" since July 2008 to provide general consumers (B2C) and public ...

  • Page 37
    ... for a violation of internal control system, the major nonconformity, and the corrective action in the most recent years and up to the date of the annual report printed: None (IX) Resolutions reached in the Shareholders' Meeting or by the board of directors in the most recent years and up to the...

  • Page 38
    ...financial statements and consolidated financial statements 4. The acceptance of the 2008 Distribution of Retained Earnings 5. Discussed the paid-in capital with retained earnings and employee' s dividend and the issuance of stock shares 6. The company' s 2008 "Declaration of Internal Control System...

  • Page 39
    ... of personnel who are responsible for financial statements in the most recent years and up to the date of the annual report printed. April 23, 2009 Reasons for resignation or discharge Internal position adjustment Internal position adjustment Title Manager Chief Accountant Name Jonney Shih Lisa Wu...

  • Page 40
    ... reinvested business and the total shareholding ratio: Total Shareholding Ratio Baseline date: 12.31.2008, Unit: Share; % Investment of the Company Shares PEGATRON CORPORATION Askey Computer Corporation ASUS TECHNOLOGY INCORPORATION ASMEDIA TECHNOLOGY INC. AXUS MICROSYSTEMS INC. ASUSCOM NETWORK INC...

  • Page 41
    ... ASUS TECHNOLOGY PTE. LIMITED Asus Middle East FZCO ASUS COMPUTER GmbH ASUS COMPUTER Benelux B.V. ASUS FRANCE SARL ASUSTEK (UK) LIMITED ASUS TECHNOLOGY (HONG KONG) LIMITED ASUS KOREA Co., Ltd. ASUSTEK COMPUTER (SINGAPORE) PTE, LTD. ASUS Polska Sp. z o.o. ASUS New Zealand Limited ASUS Technology...

  • Page 42
    ...Total Investment Shares % - 100.00 500 100.00 - 100.00 - 100.00 ASUS IBERICA S.L. ASUS Technology (Suzhou) Co. Ltd. Asus Japan Incorporation ASUS COMPUTER Czech Republic s.r.o. ASUS United Technology (Shanghai) Co., Ltd. 3,000 100.00 ASUS Hungary Services Limited Liability Company ASUS PORTUGAL...

  • Page 43
    ... UNIMAX HOLDINGS LIMITED Potix Corporation (Cayman) ASUS COMPUTER CORPORATION MOBOSTAR TECHNOLOGY LIMITED Investar Burgeon Venture Capital Inc. UNIHAN CORPORATION Enertronix, Inc. AMA PRECISION INC. Advansus Corp. ASROCK Incorporation KINSUS Interconnect Technology Corporation ABILITY ENTERPRISE CO...

  • Page 44
    Reinvestment Investment of the Company Shares % Investments from Directors, Supervisors, Managers and directly or Indirectly Controlled Business Shares % 29,582 472,000 5,250,018 5,662,500 2,683,485 2,962,451 837,226 7,500,000 569,666,472 158,480,341 50,000 349,...

  • Page 45
    ... Shares 1,604,000 % 88.91 AMA Holdings Limited EXTECH LTD. METAL TRADINGS LTD. FENGSHUO TRADING (TONGZHOU) CO., LTD. Grandtech Precision Ltd. KINSUS CORP. (USA) KINSUS HOLDING (SAMOA) LIMITED KINSUS HOLDING (CAYMAN) LIMITED KINSUS INTERCONNECT TECH. (SUZHOU) CORP. PEGATRON TECHNOLOGY SERVICE...

  • Page 46
    ...KAEDAR TRADING LTD. KAEDAR HOLDINGS LIMITED KAEDER ELECTRONICS (KUNSHAN) CO., LTD Core-Tek (Shanghai) Limited GHING HONG PRECISE MOULD INDUSTRY (SUZHOU) HONG HUA TECHNOLOGY (SUZHOU) CO., LTD Bao-Yi Enterprise Co., Ltd. SHANGHAI INDEED TECHNOLOGY CORPORATION Zhangjiagang E. Kao-Shin Metal Products Co...

  • Page 47
    ... I. Capital and shares (1) History of capitalization 1. Type of shares April 18, 2009 / Unit: Shares Authorized Shares Type of Shares Order common stock Listed (Available for trading on the TSE) (Note) 4,246,051,269 Unissued shares 503,948,731 Total 4,750,000,000 Remarks Note: The stock is listed...

  • Page 48
    ... 3. Self-registration system: None (2) Status of shareholders Status of Shareholders April 18, 2009 Status of shareholders Government Agencies QTY Number of Shareholders Shareholding Shareholding ratio (%) 9 47,283,288 1.11 Financial Institutions 36 121,054,584 2.85 Other Juridical Persons 661 779...

  • Page 49
    ...40ʘ 100.00ʘ 800,001-1,000,000 Over 1,000,001 Total 2. Preferred Stock Shares: None (IV) Roster of Major Shareholders Roster of Major Shareholders As of April 18, 2009 Shareholding Shareholding Shareholder' s Name ASUS' s Certificate of Depository with CitiBank Ted Hsu Wayne Hsieh 157,570,402 130...

  • Page 50
    ... pain-in capital, the information of market price and cash dividend adjusted retroactively in accordance with the stock shares issued must be disclosed. Note 1: List the highest and lowest market price per share; also, calculate the average market price per share in accordance with the trade amount...

  • Page 51
    ... report printed on April 23, 2009 for data accuracy. (VI) Execution of Dividend Policy 1. Dividend Policy The company is in a changing industrial environment and a growing industrial life cycle. For the company' s long-term financial planning and the shareholder' s need for cash inflow, the annual...

  • Page 52
    ... net balance in shareholders meeting for approval. 2. The distribution of dividend to employee proposed by the board of directors: Ȑ1È'ʳ The distribution of dividend to employee: NT$ 950,837,320, in which, $700,000,000 is for paid-in capital with stock issued, the stock shares issued are computed...

  • Page 53
    ... stock: April 18, 2009 Term of call Purpose of call Call period Call price Type and volume of stock shares called Amount of call Stock shares written off and transferred Shareholdings Ratio of shareholdings to total shares issued 1st time in 2009 For protecting the company' s credit and shareholder...

  • Page 54
    ...000 or the multiples Europe, Asia Luxembourg Stock Exchange Corporate Stock with premium issued at 100.5% of face value The principal of corporate bond is US$320 million 0% Five-year term Due date: January 15, 2009 New York Bank Merrill Lynch International (Taiwan) Ernst & Young CPA Ming-Yu Lee and...

  • Page 55
    ... value Location of issuance and trade Issuing price Total amount Interest rate Term Guarantee institute Trustee Underwriter The 1st domestic convertible bond November 7, 2006 NT$100 thousand Taiwan, GreTai securities market Issued at the face value 100% NT$12,000,000 thousand 0% Five-year term Due...

  • Page 56
    ... the due date. If the closing price of the company' s common stock at SEC exceeds the conversion price for over 50% for thirty working days consecutively, the company may send a "bond call notice" (the said period starts from the date of notice sent by the company; also, the baseline date for "call...

  • Page 57
    ... of the issuance date to ten days before the due date. ȐaÈ'The convertible bond helps avoid profit erosion and minimize the dilution of shareholder' s equity and ERP Issuance and conversion, exchange or resulted from the substantial increase of stock shares; subscription measures; the influence of...

  • Page 58
    ... issuance (process) Location of issuance and trade Total amount Unit Price Total issuance Source of common stock recognition May 30, 1997 London US$235, 830,000 US$11.23 / GDR 21,000,000 GDRS One GDR stands for one common stock share of ASUS (The Company' s stock exchange ratio has changed from one...

  • Page 59
    ... other rights: (1) Entitled to distribution of dividend and stock shares just like the common shareholders of ASUS. GDR institute may have GDR issued proportionally to shareholdings or increase the common stock shares recognized with each GDR or have stock dividend sold on behalf of GDR holders and...

  • Page 60
    ... the annual report printed: 1. The opinions of the security underwriter who is responsible for merger, accepting other company' s stock share, and issuing new stock shares in the most recent quarter: None 2. If the business performance of the last quarter does not meet the expectation, please state...

  • Page 61
    ... shareholders who have given ASUS long-term support and encouragement for refinement and development. 1. Product lines of the company!! a. Desktop / server b. 3D AutoCAD c. Advanced sound blaster d. NB e. Advanced server f. Intelligent PDA phone g. LED display h. Big screen high resolution plasma TV...

  • Page 62
    ... to Volume. ASUS leads the industry to develop advanced products successfully and with the following new products to show for: 1. Product R&D in 2008: a. Eee PC 8.9" computer b. Eee PC 10" computer c. Eee desktop computer d. 5G multimedia phone e. Advanced LED display with built-in Networking camera...

  • Page 63
    ...PC touch computer b. Eee PC long-lasting computer c. Eee PC - New Generation Simple Series for home use d. Intelligent phone GPS e. LED TV with built-in Set-up box f. Advanced energy-saving MB g. Ultra Mobile PC (IV) Long-term and short-term development plan ASUS has become a 100% brand name company...

  • Page 64
    ...price, cosmetic design, quality industrial design, light weight, shock prove, and easy interface. ASUS has managed to have 8.9"-screen and power-recharge-free-for-a-day Eee PC 901 market launched in April 2008. ASUS had the thinnest Eee PC S101 market launched in October 2008 to develop a new market...

  • Page 65
    ... started green MB R&D lead-free and cadmium-free since the year of 2002; also, has introduced the concept of environmental protection to other product lines and with the first energy-saving and power-saving MB including "intelligent power-saving engine EPU" market launched in 2007 that helped save...

  • Page 66
    ... structure; therefore, it is crucial to improve the management effectively. Product and technological development (1) Advantages a. ASUS is with a strong R&D team for the development of MB, VGA, CD-ROM, NB, server, desktop computer, smart phone, wireless broadband mobile device, and Eee series...

  • Page 67
    ...major products 1. Application of major products a. MB, VGA, and CD-ROM are important elements to desktop computer and server. ASUS is in a leading position with all the aforementioned products worldwide. b. NB and PDA are with potential to grow in commercial market (governmental offices and business...

  • Page 68
    ...customers and suppliers of the company, the amount and ratio of sales and purchases do change due to the change of product combination and market environment. (V) Production/Sales Quantities and Value over the Past Two Year Unit: Piece (unit); NT$ thousands Year QTY & Amount Product Computer system...

  • Page 69
    (VI) Sales quantities and value of the last two fiscal years: Unit: Piece (unit); NT$ thousands Year QTY & Amount 2007 Domestic Sales QTY Amount Export Sales QTY Amount Domestic Sales QTY Amount 2008 Export Sales QTY Amount Items Computer system 3C products Others Total 1,560,507 19,254,193 16,...

  • Page 70
    ..., the SERASUS is promoted to work with suppliers promoting green supply chain, reinforcing green design, developing green products, encouraging green products recycling mechanism and power-saving products design in compliance with the global environmental protection equipments of WEEE, RoHS, and EuP...

  • Page 71
    ...=65&mode=20 ASUS' s green achievements: (1) The green design and recycling system plan of ASUS is to establish "green design and green recycling management platform" including establishing international environmental protection regulations information control system, green product easy-dismounting...

  • Page 72
    ... of recycled products on environment. Developed the first WEEE easy to dismounting and recycling Green Design system in Taiwan in order to comply with the 3R recycling ratio of European Community, construct green recycling IT platform, and monitor and control recycling information. Conducted life...

  • Page 73
    ... caring for employees" is illustrated in the company' s operating concept. Therefore, the company' s talents development mechanism is planned to help directors and talents build up the most needed ability in fulfilling personal work objectives with a personal learning program drafted up. Directors...

  • Page 74
    ... ASUS has learning blueprint planned for all employees in order to build up their competency for career planning and development. ASUS has seminars arranged annually for newly promoted managers, managerial talents development training, and junior manager' s courses to help improve their management...

  • Page 75
    ...of global chemicals control system completed. 7. Define greenhouse gas inspection and gas emissions reduction plan The production line flow of ASUS is mostly assembly process and office process that is with less greenhouse gas emissions comparing to other industries that are with worse air-pollution...

  • Page 76
    ... homes with financial difficulty in the community. (V) Retirement plan In response to the company' s having the business operation dividend into brand name business and OEM/ODM since 2008, the seniority of the workers with ROC nationality was settled and with the pension paid on the end of January...

  • Page 77
    VI. Financial Information I. Condensed balance sheet, income statement, and auditor's opinions over the last five years (I) Summarized Balance Sheets Unit: NT$ thousands Year Item Current Assets Funds & investments Fixed assets Intangible Assets Other Assets Total Assets Before allocation Current ...

  • Page 78
    ... The Q1 2009 financial statements have not yet been audited by CPA up to the date of the report printed on April 23, 2009. Note 3: No capitalized interest expenses booked in the last five years. Note4:!ASUS has adopted the principles under Accounting Research and Development Foundation in Taiwan (97...

  • Page 79
    ... 23, 2009 (Note 5) Item (Note 2) Financial structure ΰиα Ratio of liabilities to assets Ratio of long-term capital to fixed assets Current ratio (%) Solvency (%) Quick ratio (%) Times interest earned ratio Account receivable turnover (times) Days sales in accounts receivable Operating ability...

  • Page 80
    .... Ratio of return on shareholders' equity: The net income is decreased substantially due to the financial tsunami occurred in the second half of the year. Ratio of operating income to issued capital stock:!The sales income decreases due to the financial tsunami occurred and OEM business split to the...

  • Page 81
    ... (2) Return on shareholder' s equity = Net income (loss) / Net average shareholders' equity (3) Ratio to issued capital stock = Net income before tax / Issued capital stock (4) Profit ratio = Net income (loss) / Net sales (5) Earnings per share = (Net income - preferred stock dividend) / Weighted...

  • Page 82
    ... on the Statement of Cash Flow. 2. Capital expenditure meant for the cash outflow of capita investment annually. 3. Increase of inventory is counted only when ending inventory exceeds beginning inventory. If the ending inventory is decreased, it is booked as zero value. 4. Cash dividend includes the...

  • Page 83
    ... in the most recent years ASUSTek Computer Inc. SUPERVISORS' REPORT ASUS SUPERVISORS' REPORT We have examined the accompanying financial statements and consolidated financial statements as of 2008 that are composed by the Board of Directors, business report, and distribution of retained earnings...

  • Page 84
    ASUSTek Computer Inc. SUPERVISORS' REPORT ASUS SUPERVISORS' REPORT We have examined the accompanying financial statements and consolidated financial statements as of 2008 that are composed by the Board of Directors, business report, and distribution of retained earnings. In our opinion, it is in ...

  • Page 85
    ASUSTek Computer Inc. SUPERVISORS' REPORT ASUS SUPERVISORS' REPORT We have examined the accompanying financial statements and consolidated financial statements as of 2008 that are composed by the Board of Directors, business report, and distribution of retained earnings. In our opinion, it is in ...

  • Page 86
    ... for details. V. Consolidated financial statements of the parent company and subsidiary in the most recent years: Please refer to Page 139-209 for details. VI. Financial difficulties faced by the company and the related party in the most recent years and up to the date of the annual report printed...

  • Page 87
    83

  • Page 88
    English Translations of Financial Statements Originally Issued in Chinese ASUSTEK COMPUTER INC. NON-CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars) ASSETS IV.1 IV.2 IV.3 IV.4 IV.4, V V IV.5 V V IV.21 V IV.13 V V IV.13 ...

  • Page 89
    English Translations of Financial Statements Originally Issued in Chinese ASUSTEK COMPUTER INC. NON-CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars except for Earnings Per Share) Notes IV.19, V ...

  • Page 90
    ... Translations of Financial Statements Originally Issued in Chinese ASUSTEK COMPUTER INC. NON-CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars) Capital Stock $34,070...

  • Page 91
    English Translations of Financial Statements Originally Issued in Chinese ASUSTEK COMPUTER INC. NON-CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars) 2008 $16,456,567 $27,283,328 CASH FLOWS ...

  • Page 92
    ... stated) I. ORGANIZATION AND OPERATIONS ASUSTeK Computer Inc. was established on April 2, 1990. Its main activities are to produce, design and sell "Notebook PC, main board, CD-ROM and add-on cards". The Company resolved to spin-off its OEM businesses on January 1, 2008. According to the Company...

  • Page 93
    ...In thousands of New Taiwan dollars unless otherwise stated) Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value with changes in fair value charged to stockholders' equity are remeasured at the exchange rate prevailing on the balance sheet date, with...

  • Page 94
    ...at fair value with changes in fair value recognized in profit and loss. Stocks of listed companies, convertible bonds and close-end funds are measured at closing prices on the balance sheet date. Open-end funds are measured at the unit price of the net assets on the balance sheet date. (2) Financial...

  • Page 95
    ... (then debited to retained earnings when additional paid-in capital is insufficient). The fair market value of the listed shares of investee companies in which the Company has now obtained control shall be based on the quoted prices over a reasonable period before or after the announcement of the...

  • Page 96
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) Depreciation is provided on the straight-line basis over the following useful lives: Categories Buildings and equipment Machinery and equipment Warehousing equipment...

  • Page 97
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) ï,ƒ As the bondholder exercises the right to convert the bonds, the book value of the bonds and the related assets and liabilities are transferred to capital stock and ...

  • Page 98
    ...when the fair value is negative, the financial instrument is classified as a financial liability. The change in fair value of derivatives shall be recognized as current profit or loss. Once the derivative meets the criteria for hedge accounting, the Company adopts hedge accounting to account for the...

  • Page 99
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) The Company adopts the R.O.C. SFAS No. 12 "Accounting for Income Tax Credits". This Statement requires all income tax credits resulting from the acquisition of equipment...

  • Page 100
    ... financial statements and acquisition of shares The Company adopts the R.O.C. SFAS No. 7 "Consolidated Financial Statements" for the preparation of its consolidated financial statements and adopts the R.O.C. SFAS No. 25 "Business Combinations-Accounting Treatment under Purchase Method" to account...

  • Page 101
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 19. Spin-off transactions The Company adopts the Interpretation No. 91-128 by Accounting Research and Development Foundation to account for its spin-off transactions. If...

  • Page 102
    ...: Stock: D-Link Corporation 2008/12/31 $252,588 2007/12/31 $- (2) The Company recognized the net movements in fair value of available-for-sale financial assets-current as unrealized profit of financial assets in the amounts of $21,281 thousand for the year ended December 31, 2008. The Company had...

  • Page 103
    ... 79,872 107,500 $5,683,155 (2) The Company recognized the net movements in fair value of available-for-sale financial assets-noncurrent as unrealized losses in the amounts of $1,974,062 thousand and $2,628,689 thousand for the years ended December 31, 2008 and 2007, respectively. (3) Available-for...

  • Page 104
    ... otherwise stated) 7. FINANCIAL ASSETS CARRIED AT COST-NONCURRENT (1) Financial assets carried at cost-noncurrent consist of the following: Stocks: AmTrust Capital I Corp. ASUSCOM Network Inc. INVESTAR BURGEON VENTURE CAPITAL, INC. ASUSPOWER Computer Inc. Wai-Gin Industrial Co., Ltd. Total 2008/12...

  • Page 105
    ...INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) Investee Companies ASUSTEK HOLDINGS LIMITED Asint Technology Corporation ASUSCHANNEL CORPORATION AMA CORPORATION ASMEDIA TECHNOLOGY INC. Askey Computer Corp. PEGATRON CORPORATION eCareme...

  • Page 106
    ...,371 thousand and long-term investment credit-ASUS COMPUTER INTERNATIONAL of $186,133 thousand. (7) According to the R.O.C. SFAS No. 7 "Consolidated Financial Statements", those investees over which the Company has control have been included in the consolidated financial statements for 2008 and 2007...

  • Page 107
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 9. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: 2008/12/31 Accumulated Depreciation $341,933 12,190 15,936 522,174 8,056 3,457 ...

  • Page 108
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2007/12/31 Item Computer software 11. ASSETS HELD FOR LEASE (1) Assets held for lease consist of the following: 2008/12/31 Items Buildings and equipment Cost $75,331 ...

  • Page 109
    ... Company has the right to redeem the ECB I in whole or in part at any time on or after January 15, 2006 at a price equal to 100% of the unpaid principal amount thereof if the Closing Price of the Common Shares (translated into US dollars at the Prevailing Rate) on each of 20 consecutive Trading Days...

  • Page 110
    ...thereof. (e) If the Common Shares cease to be listed or admitted to trading on the Taiwan Stock Exchange for a period of at least five consecutive Trading Days, then each Holder will have the right to require the Company to repurchase all of such Holder's ECB I at a price equal to 100% of the unpaid...

  • Page 111
    ...using the lowest average Closing Prices of the Common Shares of the Company for 10, 15 and 20 Trading Days immediately preceding special reset day. (3) ECB I that has been redeemed or converted into the Company's capital stocks from the issued date to December 31, 2008 and 2007, respectively, are as...

  • Page 112
    ...payable, and gain/(loss) on valuation of financial liabilities of $942,440 thousand and $(250,921) thousand for the years ended December 31, 2008 and 2007 (adjusted), respectively. (6) Domestic non-collateralized convertible bonds that have been redeemed or converted into the Company's capital stock...

  • Page 113
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) The Company redeemed the domestic convertible bonds and, thus, recognized other income - gain on redemption of bonds payable of $15,226 thousand in 2008. The Company had...

  • Page 114
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 15. CAPITAL STOCK (1) On April 10, 1997, the Company's stockholders resolved to increase capital for 182,000 thousand shares by transferring from retained earnings. The ...

  • Page 115
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (8) As of December 31, 2008, the authorized capital of the Company was $47,500,000 thousand ($500,000 thousand were reserved for employee stock options) of which $42,460...

  • Page 116
    ... long-term financial plan of the Company and the demand for cash by the stockholders, the Company should distribute cash dividends no less than 10% of the aggregate of all dividends. (3) The distribution of annual net income of 2007: (in thousands of dollars/shares) Distribution of 2007 annual net...

  • Page 117
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) Note: (Without considering the retrospective adjustments for bonds) Net income of 2007 - Employees' cash bonuses - Employees' stock bonuses - Directors' and supervisors'...

  • Page 118
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (4) As required by the government, if the Company's stockholders' equity has any debit balances such as unrealized loss for financial instruments and cumulative ...

  • Page 119
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 20. OPERATING COST/EXPENSES The Company's personnel, depreciation and amortization expenses for the years ended December 31, 2008 and 2007 were as follows: 2008 Nature ...

  • Page 120
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2008/12... assets/(liabilities)-noncurrent (5) The reconciliation of income tax and income tax payable are as follows: 2008 $20,556,548 (7,603,625) 12,952,923 $12,952,923...

  • Page 121
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2007 2008 Estimated income tax payable Add/(Deduct):Additional 10% income tax levied on the undistributed earnings of 2007 and 2006 Tax payable under AMT act Deferred ...

  • Page 122
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 22. EARNINGS PER SHARE Weighted average number of shares (in thousands of shares): 2008 Outstanding share, beginning of the year Add: Increase in capital through 2007 ...

  • Page 123
    ... ASMEDIA TECHNOLOGY INC. PEGATRON CORPORATION ASUS TECHNOLOGY INCORPORATION International United Technology Co., Ltd. (Taiwan) Asint Technology Corporation Askey Computer Corp. AMA PRECISION INC. UNIHAN CORPORATION ADVANSUS CORP. Asmobile Communication Inc. Investee evaluated under the equity method...

  • Page 124
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) Related Parties ASUSTEK INVESTMENT CO., LTD. Enertronix, Inc. AzureWave Technologies, Inc. KINSUS INTERCONNECT TECHNOLOGY CORP. STARLINK ELECTRONICS CORPORATION ASFLY ...

  • Page 125
    ... SERVICE INC. ASUS UK Limited ASUSPOWER CORPORATION DIGITEK GLOBAL HOLDINGS LIMITED Double Tech Ltd. International United Technology Co., Ltd. NxNet Systems, Inc. Openbase Limited STRATEGY Technology Co., Ltd. Mr. Eric Chang Mr. Johnson Teng The Company's directors, supervisors and major management...

  • Page 126
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2. Significant related party transactions: (1) Purchases Related parties PEGATRON CORPORATION UNIHAN CORPORATION AzureWave Technologies, Inc. PEGATRON Czech s.r.o. ...

  • Page 127
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) Sales revenues Related parties ASUS TECHNOLOGY PTE. LIMITED ASUS TECHNOLOGY INCORPORATION PEGATRON CORPORATION UNIHAN CORPORATION ASIAROCK TECHNOLOGY LIMITED Double...

  • Page 128
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (4) Other receivables from affiliated companies (Non-financing) Related parties PEGATRON CORPORATION Double Tech Ltd. Others Total (5) Payables to affiliated companies ...

  • Page 129
    ... the annual report of shareholders' meeting for subsequent updated information. (10) The Company incurred other related party transactions recorded as expenses such as rental expense, royalties, service charges, inspection fee, miscellaneous expense and etc. for the years ended December 31, 2008 and...

  • Page 130
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (11) On April 24, 2008, the board of the Company resolved to acquire the newly issued stocks for 279,628,141 shares of PEGATRON CORPORATION, a wholly-owned subsidiary, ...

  • Page 131
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) PEGATRON CORPORATION Assets Current assets Long-term investments Property, plant and equipment Other assets Total Liabilities Current liabilities Total Net Assets $21,...

  • Page 132
    ... As of December 31, 2008, the Company had the following unused L/Cs (in dollars): Names of the Banks Mega International Commercial Bank Currencies USD Total Amounts $28,600 2. The Company's income tax returns assessed by the Tax Bureau from 1996 to 2002 exceeded the total amount filed by $2,927,620...

  • Page 133
    ... North California Court in the US. 12. In Dec., 2008, an US company filed a suit against the Company alleging that the Company was engaged in patent infringement. The suit is currently under investigation in United States International Trade Commission. 13. In Nov., 2008, an US company filed a suit...

  • Page 134
    ...financial assets at fair value through profit or loss, available-for-sale financial asset-current and available-for-sale financial asset-noncurrent. The main purpose of these financial instruments is to manage the financing for the Company's operations. The Company also holds various other financial...

  • Page 135
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (3) Credit risk The Company trades only with established and creditworthy third parties. It is the Company's policy that all customers who wish to trade on credit terms ...

  • Page 136
    ... Available-for-sale financial assets-noncurrent Financial assets carried at cost-noncurrent Refundable deposits Long-term accounts receivable Liabilities Payables Bonds payable Deposits received Derivative financial instruments Liabilities Financial liabilities at fair value through profit or loss...

  • Page 137
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) The following methods and assumptions were used for determining the fair value of financial instruments: ï, The fair value of short-term financial instruments was ...

  • Page 138
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) Determined by the quoted market price 2008/12/31 2007/12/31 Financial Liabilities Payables Financial liabilities at fair value through profit or loss-current Bonds ...

  • Page 139
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (3) The Company's subsidiaries engaged in the following derivative financial instruments: ï, Ability Enterprise Co., Ltd. 2008/12/31 Notional amounts (in thousand ...

  • Page 140
    ... value Assets Financial assets at fair value through profit or loss-current (forward exchange contracts) $6,553 $6,553 Askey Computer Corp. and its subsidiaries incurred net (loss)/gain on valuation of financial assets of $(23,338) thousand and $6,349 thousand for the years ended December 31, 2008...

  • Page 141
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) ASUS TECHNOLOGY PTE. LIMITED incurred net loss on valuation of financial liabilities of USD 26,781 thousand in 2008. ASUS TECHNOLOGY PTE. LIMITED had no such item during...

  • Page 142
    ASUSTEK COMPUTER INC. Notes to Non-Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 3. Export information: the export amounts for the years ended December 31, 2008 and 2007 were as follows: Geographical area Asia Pacific US & Canada Europe Africa Total ...

  • Page 143
    139

  • Page 144
    ... CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars) Notes IV.18, VI IV.19 IV.28 V V IV.20 IV.21 IV.8 IV.1 IV.2 IV.3 IV.4 IV.5 IV.6, V V IV.7 V IV.8 VI IV.28 LONG-TERM DEBT Financial liabilities at fair value through profit...

  • Page 145
    ... Translations of Financial Statements Originally Issued in Chinese ASUSTEK COMPUTER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars except for Earnings Per Share) 2007...

  • Page 146
    ... of Financial Statements Originally Issued in Chinese ASUSTEK COMPUTER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars) Capital Stock $34...

  • Page 147
    English Translations of Financial Statements Originally Issued in Chinese ASUSTEK COMPUTER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (Retrospectively Adjusted) (Expressed in Thousands of New Taiwan Dollars) 2008 $18,924,931 (75,872) ...

  • Page 148
    ... stated) I. ORGANIZATION AND OPERATIONS ASUSTeK Computer Inc. was established on April 2, 1990. Its main activities are to produce, design and sell "Notebook PC, main board, CD-ROM and add-on cards". The Company resolved to spin-off its OEM businesses on January 1, 2008. According to the Company...

  • Page 149
    ... and selling computer peripherals and audio-video product eCareme Technologies, Inc. International United Technology Co., Ltd. (Taiwan) Network service Database service, wired communication, manufacturing mechanical equipment, and manufacturing, selling and developing ink-jet printing technology Hua...

  • Page 150
    ... CO., LTD. Nature of business Manufacturing and selling new electronic parts and premium hardware Computer security systems, messenger management systems, and automation systems R&D; providing related technology and after-sales service GREAT EXTEND INVESTMENT CORP. Askey International Corp. Dynalink...

  • Page 151
    ... (HONG KONG) LIMITED ASUS KOREA Co., Ltd. ASUSTEK COMPUTER (SINGAPORE) PTE, LTD. ASUS Polska Sp. z o.o. ASUS New Zealand Limited ASUS Technology Private Limited ASUS Technology Holland B.V. (Continued) Trading computers and relevant parts, and after-sales service Sales and repair service center in...

  • Page 152
    ... and wired communication equipment Investing activities Sales and repair service center in North America Investing activities Designing and developing computer parts Selling computer peripherals, office automation equipment, digital cameras and food products retail and wholesale UNIHAN HOLDING LTD...

  • Page 153
    ... wired and wireless communication equipment, computer equipment and electronic components wholesale ASUSPOWER CORPORATION PEGATRON TECHNOLOGY SERVICE INC. PEGATRON JAPAN INC. Investing and trading activities Sales and repair service center in North America Sales and repair service center in Japan...

  • Page 154
    ... boards and relevant products, and after-sales service Manufacturing, developing and selling power supply units, computer cases, computer systems, notebooks, main boards, computer peripherals and maintenance service (Continued) Database service and trading electronic components Office building...

  • Page 155
    ... computer parts, application systems, and after-sales service Investing and trading activities Investing and trading activities Investing and trading activities Researching and producing the parts of notebooks, designing nonmetal tooling, electronic specific equipment and related products, repairing...

  • Page 156
    ... activities Sales and repair service center in UK Selling main boards, servers, computer peripherals and software Investing and trading activities Trading computer peripherals, PDA's, and media players, commission agent, and after-sales service NxNet Systems, Inc. Designing and selling communication...

  • Page 157
    ... business Manufacturing and selling software, integrated circuits, and network technology Manufacturing and selling wired and wireless communication equipment Manufacturing and selling computer peripherals and electronic information supply service Manufacturing and selling electronic parts Designing...

  • Page 158
    ... in foreign currencies that are measured at fair value with changes in fair value recognized in profit or loss, are remeasured at the exchange rate prevailing on the balance sheet date, with related exchange gains or losses recorded in the statements of income. Non-monetary assets and liabilities...

  • Page 159
    ...changes in fair value recognized in profit and loss. Stocks of listed companies, convertible bonds and close-end funds are measured at closing prices on the balance sheet date. Open-end funds are measured at the unit price of the net assets on the balance sheet date. (2) Available-for-sale financial...

  • Page 160
    ... method. Profit or loss from changes in fair value is recognized at the time of write-off, impairment or amortization. (5) Financial assets carried at cost Equity investments without reliable market prices, including emerging and other unlisted stocks, are measured at cost. If objective evidence of...

  • Page 161
    ...for sale rather than held for ongoing operation to recover the carrying value is valued at the either lower of carrying amount or fair values less costs to sell. 9. Long-term investments under the equity method (1) The difference between the acquisition cost and the Company's and subsidiaries' share...

  • Page 162
    ... stated) (5) When the Company and subsidiaries issue new shares to acquire another company's shares, the carrying amount of the investment shall be either the fair market value of the Company's and subsidiaries' shares or the fair market value of the investee's shares, whichever is more objective...

  • Page 163
    ... Deferred charges represent small tools and office decorations, which are amortized using the straight-line method over 2 to 5 years. 13. Convertible bonds payable (1) For bonds issued prior to December 31, 2005, the policy consists of the following: ï, The issuance costs are recorded as deferred...

  • Page 164
    ... Company shall adjust the book value of the liability components to the value on the conversion date, which would be the recording basis of common stocks to be issued without recognizing conversion gain and loss. ï,... If the bondholder could exercise the put option within one year, the bonds payable...

  • Page 165
    ... of the deferred tax assets. The Company and domestic subsidiaries adopt the R.O.C. SFAS No. 12 "Accounting for Income Tax Credits". This Statement requires all income tax credits resulting from the acquisition of equipment or technology, research and development, and employee trainings to be...

  • Page 166
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 17. Revenue and cost The Company and subsidiaries recognize revenue when the revenue earning process has been significantly completed, which means the ...

  • Page 167
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 20. Earnings per share (EPS) Primary EPS is calculated by dividing net income by the weight-average number of shares outstanding during the period. In the ...

  • Page 168
    ... VI for details. 2. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS-CURRENT (1) Financial assets at fair value through profit or loss-current consist of the following: 2008/12/31 Financial assets for trading purpose Beneficiary certificates Stocks of listed companies Forward exchange contracts...

  • Page 169
    ... Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 3. AVAILABLE-FOR-SALE FINANCIAL ASSETS-CURRENT (1) Available-for-sale financial assets-current consist of the following: 2008/12/31 $516,306 2007/12/31 $17,761 Stocks of listed companies (2) Available-for-sale...

  • Page 170
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) As of December 31, 2008 and 2007, KINSUS INTERCONNECT TECHNOLOGY CORP. sold the account receivables as follows: Write-off of account receivables ...

  • Page 171
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) The Company gained control over Ability Enterprise Co., Ltd. from a share swap and adjusted the difference between acquisition cost and fair value of ...

  • Page 172
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) After evaluating and comparing the carrying value of available-for-sale financial assets-noncurrent and the expected recoverable amount, the Company and...

  • Page 173
    ...,831 (2) The Company gained control over Ability Enterprise Co., Ltd. from a share swap and adjusted the difference between the acquisition cost and the fair value of long-term investment-Avy Precision Technology Inc. based on the Company's percentage of ownership. As of December 31, 2008 and 2007...

  • Page 174
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (4) Long-term investments under the equity method are not pledged as collateral. (5) The Company and subsidiaries conducted the test for impairment on the ...

  • Page 175
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) After evaluating and comparing the carrying value of property, plant, and equipment and the expected recoverable amount, the Company and subsidiaries ...

  • Page 176
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 16. ACCOUNTS RECEIVABLE-OVERDUE Accounts receivable-overdue consist of the following: 2008/12/31 $96,527 (96,527) $2007/12/31 $97,388 (97,388) $- Accounts ...

  • Page 177
    ... Company has the right to redeem the ECB I in whole or in part at any time on or after January 15, 2006 at a price equal to 100% of the unpaid principal amount thereof if the Closing Price of the Common Shares (translated into US dollars at the Prevailing Rate) on each of 20 consecutive Trading Days...

  • Page 178
    ...thereof. (e) If the Common Shares cease to be listed or admitted to trading on the Taiwan Stock Exchange for a period of at least five consecutive Trading Days, then each Holder will have the right to require the Company to repurchase all of such Holder's ECB I at a price equal to 100% of the unpaid...

  • Page 179
    ...using the lowest average Closing Prices of the Common Shares of the Company for 10, 15 and 20 Trading Days immediately preceding special reset day. (3) ECB I that has been redeemed or converted into the Company's capital stocks from the issued date to December 31, 2008 and 2007, respectively, are as...

  • Page 180
    ...payable, and gain/(loss) on valuation of financial liabilities of $942,440 thousand and $(250,921) thousand for the years ended December 31, 2008 and 2007 (adjusted), respectively. (6) Domestic non-collateralized convertible bonds that have been redeemed or converted into the Company's capital stock...

  • Page 181
    ... otherwise stated) Convertible bonds issued by the Company and held by ASROCK Incorporation is deemed as the redemption of bonds and a reduction of the Company and subsidiaries' carrying value of bonds amounted to $222,066 thousand. The circumstance is as follows: 2008 Unit Cost Market price Total...

  • Page 182
    ... to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) Creditor Industrial and Commercial Bank of China Mega International Commercial Bank Mega International Commercial Bank Mega International Commercial Bank The Shanghai Commercial & Savings Bank, Ltd...

  • Page 183
    ... the USD 30,000 thousand loan of ASKEY TECHNOLOGY (JIANGSU) LTD., Askey Computer Corp. must comply with the following financial covenants throughout the terms of the above loan agreement managed by Mega International Commercial Bank (2008/4/7~2011/4/7): ï, Debt ratio ((total liabilities+contingent...

  • Page 184
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (4) For the long-term financial plan and fulfillment of mid-term working capital, PEGATRON CORPORATION received syndicated loan of $12,000,000 thousand from...

  • Page 185
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (4) Based on the actuarial report which measures the pension assets and liabilities on December 31, 2008 and 2007, the reconciliation between the funding ...

  • Page 186
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 23. CAPITAL STOCK (1) On April 10, 1997, the Company's stockholders resolved to increase capital for 182,000 thousand shares by transferring from retained ...

  • Page 187
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (8) As of December 31, 2008, the authorized capital of the Company was $47,500,000 thousand ($500,000 thousand were reserved for employee stock options) of ...

  • Page 188
    ... long-term financial plan of the Company and the demand for cash by the stockholders, the Company should distribute cash dividends no less than 10% of the aggregate of all dividends. (3) The distribution of annual net income of 2007: (in thousands of dollars/shares) Distribution of 2007 annual net...

  • Page 189
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) Note: (Without considering the retrospective adjustments for bonds) Net income of 2007 - Employees' cash bonuses - Employees' stock bonuses - Directors' and...

  • Page 190
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (4) As required by the government, if the Company's stockholders' equity has any debit balances such as unrealized loss for financial instruments and ...

  • Page 191
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 28. INCOME TAX 2008/12/31 $2,812,896 2,812,896 (50) $2,812,846 2008/12/31 $394,303 394,303 (2,196,252) $(1,801,949) 2007/12/31 $1,487,411 1,487,411 (8,459) ...

  • Page 192
    ..., beginning of the year Add: Increase in capital through 2007 retained earnings Increase in capital through 2008 retained earnings Weighted average number of sharesConvertible bonds Stock issued in 2007 for exchanging stock with other companies Weighted average number of shares-Primary earnings per...

  • Page 193
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2007 2008 Calculation of Primary EPS Consolidated net income Represented by: Available for common shareholders Available for minority shareholders ...

  • Page 194
    ... SHINE TRADE INTERNATIONAL LTD. PENTAX VQ CO., LTD. AVY HIGH TECH LIMITED YORKEY OPTICAL TECHNOLOGY LTD. (SAMOA) Taishiba International Co., Ltd. Mr. Eric Chang Mr. Johnson Teng The Company's and subsidiaries' directors, supervisors and major management who are significantly influencial on operation...

  • Page 195
    .... HONG HUA TECHNOLOGY (SUZHOU) CO., LTD. Others Total (2) Sales revenues Related parties PENTAX VQ CO., LTD. Others Total (3) Payables to affiliated companies Related parties SHANGHAI INDEED TECHNOLOGY CO., LTD. Avy Precision Technology Inc. Avy Co., Ltd. PENTAX VQ CO., LTD. Others Total 2008 $481...

  • Page 196
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (4) Other receivable-affiliated company (loan to affiliated company) Information for the Ability Enterprise Co., Ltd. and its subsidiaries' loan to ...

  • Page 197
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (9) As of December 31, 2008 and 2007, the amount of related party transactions recorded as related expenses, such as tooling charges, rental expenses, ...

  • Page 198
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) VII. COMMITMENTS AND CONTINGENT LIABILITIES 1. As of December 31, 2008, the Company and subsidiaries had the following unused letters of credit (foreign ...

  • Page 199
    ... filed a suit against the Company alleging that the Company was engaged in patent infringement. The suit is currently under investigation in United States International Trade Commission. 15. As of December 31, 2008, the details of operating lease over the significant property used by ASUS COMPUTER...

  • Page 200
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) Rental expenses for each year are as follows: Year 2009 2010 2011 2012 2013 2014 and after Amount (USD in thousand dollars) $992 1,365 1,419 1,476 1,535 7,...

  • Page 201
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 5. In Feb., 2009, Ability Enterprise Co., Ltd. acquired the shares of the long-term investment under the equity method-Avy Precision Technology Inc. for $...

  • Page 202
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) Commodity price risk The Company's and subsidiaries' exposure to price risk is minimal. (3) Credit risk The Company and subsidiaries trade only with ...

  • Page 203
    ... Statements (In thousands of New Taiwan dollars unless otherwise stated) 2. FINANCIAL INSTRUMENTS (1) Financial instruments consist of the following: 2008/12/31 Financial instruments Non-derivative financial instruments Assets Cash and cash equivalents Financial assets at fair value through profit...

  • Page 204
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2007/12/31 (Adjusted) Financial instruments Non-derivative financial instruments Assets Cash and cash equivalents Financial assets at fair value through ...

  • Page 205
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (2) The following methods and assumptions were used for determining the fair value of financial instruments: ï, The fair value of short-term financial ...

  • Page 206
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) (3) Fair value of financial instruments based on the quoted market price and other valuation models are as follows: Determined by the Estimated by other ...

  • Page 207
    ... at fair value through profit or loss-current" and "gain on valuation of financial assets" were both recorded at $10,894 thousand. The Company had no such item during 2007. (3) The Company's subsidiaries engaged in the following derivative financial instruments: ï, Ability Enterprise Co., Ltd. 2008...

  • Page 208
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2007/12/31 Book value Liabilities Financial liabilities at fair value through profit or loss-current (forward exchange contracts) ï,, Askey Computer Corp. ...

  • Page 209
    ... 31, 2008 was as follows: Name of Contract Marketing Agreement Party Microsoft Corporation Content Project planning (2) In order to enhance competitiveness and boost productivity, the Company's shareholders resolved, on October 30, 2007, to restructure the Company's business into own-brand and OEM...

  • Page 210
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) The following is a list of assets and liabilities for the spin-off: PEGATRON CORPORATION Assets Current assets Long-term investments Property, plant and ...

  • Page 211
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) XI. SEGMENTAL INFORMATION 1. Industry information: the Company and subsidiaries engaged mainly in the design, production and selling of main boards and ...

  • Page 212
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 2007 Asia Pacific (excluding Main land China and Domestics Sales to unaffiliated customers Intersegmental sales Total segmental sales 199,613,170 48,743,580...

  • Page 213
    ... Financial Statements (In thousands of New Taiwan dollars unless otherwise stated) 4. Significant customer information: the sales of significant customers that have exceeded 10% of the Company's and subsidiaries' net sales for 2008 and 2007 were as follows: Name of customer Company B 2008...

  • Page 214
    ... assets, and other assets: Increase long-term investment under Equity Method this year due to the profit generated from transfer investment. 4. Current liabilities: The accounts payable for the procurement of raw material is decreased in response to the OEM business split to the subsidiary. 5. Long...

  • Page 215
    ... cost Gross profit (Minus) add: Realized (unrealized) gross profit of the affiliates Realized gross profit Operating expense Operating income Non-operating income and gain Interest income Investment income (Equity Method) Dividend income Gain from assets disposed Gain from investment disposed...

  • Page 216
    ... of financial ratio change: Current ratio, Cash adequacy ratio, and Cash reinvestment ratio were increased in 2008 from 2007. Root cause: The net cash inflow from operating activity was increased due to the decrease of current liability and accounts receivable as a result of the OEM business split...

  • Page 217
    ...or Corrective action Investment Plans - loss Divide business into Profit: NT$5,080,715 own brand business thousand and OEM business for Domestic and competition and international investment business performance. Note 1: The investment amount of the year exceeds 5% of the capital collected, that is...

  • Page 218
    ... (6) New-generation advanced server (7) Professional LED display (8) WiMAX broadband products (9) EeePC touch, long-lasting computer (10) Eee Top PCǵEee Box PCǵEee Keyboard PC 2. R&D budget in 2008: NT$5.3 billion (IV) The impact of domestic and international policies and law change on the company...

  • Page 219
    ..., and shareholders with over 10% shareholding in 2008 and up to the date of the annual report printed. (XI) The impact of right to operation change on the company, the risk, and the responsive measures: N/A (XII) Legal and non-legal events: 1. The company' s major legal issues, non-legal issues, or...

  • Page 220
    (11) In Nov., 2008, an US company filed a suit against the Company alleging that the Company was engaged in patent infringement. The suit is currently under investigation in United States International Trade Commission. 2. The related party's major legal issues, non-legal issues, or administrative ...

  • Page 221
    ... risk and crisis reported from each department. (3) Assess material risk and emergency periodically and review the responsible units and SOP process. (4) Assess and amend regulations and measures periodically; also, adjust risk management subjects and the organizer and supporting units in accordance...

  • Page 222
    ... computer-related product design, production, processing, and sales. Some related parties are in the business of investment. In general, the collaboration within the organization is to generate the best result through reciprocal support in technology, production, marketing, and sales. (5) Directors...

  • Page 223
    ...100% ASUSTEK ITALY S.R.L. 100% ASUS FRANCE SARL 100% ASUSTEK (UK) 100% LIMITED 100% ASUS COMPUTER Benelux B.V. 100% ASUS COMPUTER GmbH ASUS Technology (HONG KONG) Co. Ltd. 100% ASUS United ASUS COMPUTER Czech PTE. LTD. ASUS Technology ASUS Technology ASUS Technology Technology (Shanghai...

  • Page 224
    ASUS Organization Chart (2008.12.31) - (2) Asustek Computer Inc. 100% Hua-Cheng GREENASUS Venture Capital 100% Hua-Min Investment Co., Ltd. Corp. Computer Askey RECYCLING 100% 100% 100% AMA CORPORATION 56.73% International United Technology Co., Ltd. Corp. CO., LTD. 100% Dynalink ...

  • Page 225
    ...LTD GROUP LTD 100% STRONG CHOICE LTD HOLDINGS LTD 100% BOARDTEK HOLDINGS PROTEK GLOBAL 100% 100% 100% 100% ASLINK PRECISION CO., LTD 100% NORTH TEC ASIA LTD 100% DIGITEK GLOBAL HOLDINGS LTD ENERTRONIX INTERNATIONAL LTD LTD 221 100% MAINTEK COMPUTER (SUZHOU) CO., LTD. 1.97% 89.57% 8.46...

  • Page 226
    ...CORP. 100% 100% 100% ASIAROCK ASUS SERVICE TECHNOLOGY CANADA LIMITED 100% FIRSTPLACE INTERNATIONAL 100% Cotek Holdings Limited 100% 100% 100% KINSUS HOLDING ASROCK CALROCK Europe LIMITED HOLDINGS, B.V. LLC (CAYMAN)LTD 100% ASROCK AMERICA, INC. ELECTRONICS (SUZHOU) CO., LTD. 100...

  • Page 227
    ... HOLDINGS Technologies, 100% KAEDAR TRADINGS HOLDINGS 100% SLITEK COMPUTER (SUZHOU) CO., LTD. 100% CASETEK (Shanghai) Limited Inc. Core-Tek AzureWave 100% 100% 100% 96.03% 100% Ability Technology (Dongguan) Co., Ltd. EXTECH LTD LTD LTD METAL LTD TRADINGS 223 100% KAEDER ELECTRONICS...

  • Page 228
    ... and repairing the electronic appliance and product 16,400 Sales and service center in North America eCareme Technologies, Inc. International United Technology Co., Ltd. Hua-Cheng Venture Capital Corp. Hua-Min Investment Co., Ltd. GREENASUS RECYCLING CO., LTD. ASUS COMPUTER INTERNATIONAL

  • Page 229
    ....09.29 Suzhou, China CAPITAL MAJOR BUSINESS / PRODUCTION ITEMS 210,789 Manufacturing and selling new electronic parts and premium hardware 8,342 Computer security systems, messenger management systems, and automation systems R&D; providing related technology and after-sales service 4,920 Providing...

  • Page 230
    ...2,376 Sales and service center in UK 2,117 Sales and service center in Hong Kong AVY PRECISION ELECTROPLATING 226 Ë...Ë...ˉʳ (SUZHOU) CO., LTD. DEEP DELIGHT LTD CHANNEL PILOT LIMITED UNIMAX HOLDINGS LIMITED ASUS COMPUTER CORPORATION MOBOSTAR TECHNOLOGY LIMITED ASUS TECHNOLOGY PTE. LTD. Asus Middle...

  • Page 231
    ...ADDRESS CAPITAL MAJOR BUSINESS / PRODUCTION ITEMS ASUS Technology (Suzhou) Co. Ltd. 227 Ë...Ë...ˊʳ ASUS Japan Incorporation ASUS COMPUTER CZECH REPUBLIC S.R.O. ASUS United Technology (Shanghai) Co., Ltd. ASUS Hungary Services Limited Liability Company 318,726 Selling main boards, notebooks, server...

  • Page 232
    ... service center in North America 1,384,703 Investing activities 400,000 Designing and developing computer parts 4,229,583 Selling computer peripherals, office automation equipment, digital cameras and food products retail and wholesale 5,198,155 Investing activities 690,000 Manufacturing electronic...

  • Page 233
    ... after-sales service 16,400 Developing and designing new technology and products; analyzing marketing strategy and developing new customers 492,000 Investing activities 492,000 Investing activities 512,340 Sales and manufacturing circuit board and semiconductor material 1,312,000 Database management...

  • Page 234
    ... and selling electronic components, circuit boards and relevant products, and after-sales service 7,462,829 Manufacturing, developing and selling power supply units, computer cases, computer systems, notebooks, main boards, computer peripherals and maintenance service Manufacturing, developing and...

  • Page 235
    ... the parts of notebooks, designing nonmetal tooling, electronic specific equipment and related products, repairing and producing precise equipment and providing after-sales service 660,522 Tooling module of stainless steel computer cases KAEDER ELECTRONICS (KUNSHAN) CO., LTD AzureWave Technologies...

  • Page 236
    ... Virgin Islands CAPITAL MAJOR BUSINESS / PRODUCTION ITEMS 83.11.12 75.08.15 81.12.29 Dongguan, China Taipei City 573,133 Investing activities 714,974 Producing and selling digital cameras Samoa Islands 39,360 Investing activities VIEWQUEST TECHNOLOGIES (BVI) INC. ASSOCIATION INTERNATIONAL LTD...

  • Page 237
    ...Enterprises As of 12/31/2008 NAME OF CORPORATION TITLE NAME OF PERPRESENTATIVE Asustek Computer Inc.ȐRepresentativeǺT.H. TungÈ' Asustek Computer Inc.ȐRepresentativeǺTed HsuÈ' Asustek Computer Inc.ȐRepresentativeǺJason ChengÈ' Asustek Computer Inc.ȐRepresentativeǺJerry ShenÈ' Asustek Computer...

  • Page 238
    ...% ɡ ASUS TECHNOLOGY (HONG KONG) LIMITED ASUS COMPUTER GmbH ASUS COMPUTER Benelux B.V. ASUSTEK (UK) LIMITED Chairman Director Director Director Director Chairman ASUS FRANCE SARL Director ASUS TECHNOLOGY ITALY S.R.L. Director ASUS KOREA CO., LTD. Chairman ASUS TECHNOLOGY PTE LTD. ȐRepresentative...

  • Page 239
    ... Director Director ASUS NEW ZEALAND LIMITED Director ASUS POLSKA SP.z.o.o. Director ASUSTEK COMPUTER(S) PTE, LTD. Director Chairman ASUS TECHNOLOGY PRIVATE LIMITED Director Director Director ASUS IBERICA S.L. ASUS Technology Holland B.V. Director ASUS Hungary Services Limited Liability Company ASUS...

  • Page 240
    ...* Asus Investment Inc.ȐRepresentativeǺT.H. TungÈ' Asustek Investment Inc.ȐRepresentativeǺCharlesCT LinÈ' Asuspower Investment Inc.ȐRepresentativeǺTed HsuÈ' Asuspower Investment Inc.ȐRepresentativeǺJerry ShenÈ' China International Development Consulting, Inc. ȐRepresentativeǺChing-Yi Chang...

  • Page 241
    ...Director EXTECH LTD. Director METAL TRADINGS LTD. Director FENGSHUO TRADING Chairman (TONGZHOU) CO. LTD Grandtech Precision Ltd. Chairman Chairman KINSUS CORPORATION(USA) Director Director KINSUS HOLDING(SAMOA) LIMITED KINSUS HOLDING (CAYMAN) LIMITED NORTH TEC ASIA LTDȐRepresentativeǺTimber Chang...

  • Page 242
    ... PEGATRON TECHNOLOGY SERVICE INC.(RepresentativeǺIvan Ho) STARLINK ELECTRONICS CORP.ȐRepresentativeǺJames HuangÈ' STRATEGY TECHNOLOGY CO.,LTD ȐRepresentativeǺJames HuangÈ' Director Director Director ASUS SERVICE CANADA Director STRATEGY TECHNOLOGY CO.,LTD. Director Cotek Holdings Ltd. Director...

  • Page 243
    ... LIMITED. ASAP TECHNOLOGY (JIANGXI) CO., LIMITED. KAEDER TRADING LTD KAEDER HOLDINGS LIMITED Core-Tek (Shanghai) Limited KAEDER ELECTRONICS (KUNSHAN) CO., LTD Director Chairman Director Director Director Director É¡ 5,000,000 100% 25,000,000 100% É¡ 100% É¡ 100% Note1: Stock shares are yet to...

  • Page 244
    ...Results of Affiliated Enterprises CAPITAL TOTAL ASSETS NET INCOME (LOSS) EARNINGS (LOSS) PER SHARE(NTD) 2.42 1.29 1.96 - NAME OF CORPORATION 240 Ë...ˇ˃ʳ ASUS TECHNOLOGY INCORPORATION AXUS MICROSYSTEMS INC. SHINEWAVE INTERNATIONAL INC. ASUS HOLLAND B.V. ASUS INTERNATIONAL LIMITED ASUSTEK HOLDINGS...

  • Page 245
    ... PILOT LIMITED UNIMAX HOLDINGS LIMITED ASUS COMPUTER CORPORATION MOBOSTAR TECHNOLOGY LIMITED ASUS TECHNOLOGY PTE. LIMITED ASUS Middle East FZCO ASUS COMPUTER GmbH ASUS COMPUTER Benelux B.V. ASUS FRANCE SARL ASUSTEK (UK) LIMITED ASUS TECHNOLOGY (HONG KONG) LIMITED ASUS KOREA Co., Ltd...

  • Page 246
    ...776 Note1 Note1 - CAPITAL TOTAL ASSETS NET INCOME (LOSS) EARNINGS (LOSS) PER SHARE(NTD) ASUSTEK COMPUTER (SINGAPORE) PTE, LTD. ASUS Polska Sp. z o.o. ASUS New Zealand Limited ASUS Technology Private Limited ASUS Technology Holland B.V. NET TOTAL OPERATING NET WORTH OPERATING LIABILITIES INCOME...

  • Page 247
    ... Corporation AMA Holdings Limited METAL TRADINGS LTD. EXTECH LTD. FENGSHUO TRADING (TONGZHOU) CO. LTD Grandtech Precision Ltd. STRATEGY Technology Co., Ltd. COTEK HOLDINGS LIMITED COTEK ELECTRONICS (SUZHOU) CO., LTD. KINSUS CORP. (USA) KINSUS HOLDING (SAMOA) LIMITED KINSUS HOLDING (CAYMAN) LIMITED...

  • Page 248
    ... ASIA LIMITED NET TOTAL OPERATING NET WORTH OPERATING LIABILITIES INCOME (LOSS) REVENUES 202,357 202,357 (52) PROTEK GLOBAL HOLDINGS LTD. NORTH TEC ASIA LIMITED ASLINK PRECISION CO., LTD. DIGITEK GLOBAL HOLDINGS LIMITED BOARDTEK COMPUTER (SUZHOU) CO., LTD. MAINTEK COMPUTER (SUZHOU) CO., LTD...

  • Page 249
    ... - CAPITAL TOTAL ASSETS NET OPERATING TOTAL NET WORTH OPERATING INCOME (LOSS) LIABILITIES REVENUES NET INCOME (LOSS) EARNINGS (LOSS) PER SHARE(NTD) YEH-HUA Technologies (Nanjing) Inc. ABILITY ENTERPRISE (BVI) CO., LTD. ACTION PIONEER INTERNATIONAL LTD. VIEWQUEST TECHNOLOGIES INTERNATIONAL INC...

  • Page 250
    ... aforementioned information to the public, we will be held responsible by law in accordance with Securities Transaction Regulation No. 20, No. 32, No. 171, and NO. 174. 7. We hereby declared that the Declaration of Internal Control was approved by the Board of Directors on April 22, 2009 unanimously...

  • Page 251
    ASUSTek Computer Inc. Chairman ! 247