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321
2357
ASUSTeK Computer Inc.
2014 ANNUAL REPORT
 Taiwan Stock Exchange, Market Observation Post System：http://mops.twse.com.tw
ï‚— ASUS annual report is available at http://www.asus.com
Printed on April 15, 2015

Table of contents

  • Page 1
    2357 ASUSTeK Computer Inc. 2014 ANNUAL REPORT ï,- Taiwan Stock Exchange, Market Observation Post System：http://mops.twse.com.tw ï,- ASUS annual report is available at http://www.asus.com Printed on April 15, 2015 321

  • Page 2
    ..., Taiwan Address: 27F., No.333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City 110 Tel.: (886) 2 2729-6666 Website: http://www.pwc.com V. EXCHANGEABLE BOND EXCHANGE MARKETPLACE Marketable security: GDR Luxemburg Stock Exchange: http://www.bourse.lu VI. COMPANY WEBSITE http://www.asus.com...

  • Page 3
    ...stock option plans ...74 6. Employee restricted stocks ...7. Merger and acquisitions or stock shares transferred with new stock shares issued ...8. Fund implementation plan ...V. 74 74 74 Overview of Business Operations ...75 1. Principal activities ...2. Market Analysis and the Conditions of Sales...

  • Page 4
    ... Consolidated financial statements in the most recent years ...6. Impact of financial difficulties of the Company and related party on the Company's financial position ...VII. Review of Financial Position, Management Performance and Risk Management ...1. Financial position ...2. Business performance...

  • Page 5
    ... corporate philosophy of In Search of Incredible. A review of ASUS operations in 2014 shows that ASUS notebook computers continued to achieve strong sales growth in various markets. We attribute this success to innovative design and quality. In 2014, additional resources were invested in developing...

  • Page 6
    ... past year, ASUS has led the market with innovation in the following four sectors: Computers, Mobile Computing Devices, Components, Internet of Things & Cloud Computing Technologies. The ASUS ZenFone series, launched in April 2014, won the prestigious 2014 Red Dot Award for Product Design and also...

  • Page 7
    ... with cloud services for use in healthcare. Operational Outlook In 2014, ASUS focused on marketing and quality as its two chief operational drivers. In 2015, ASUS will continue to follow our corporate brand promise and philosophy of In Search of Incredible, as we work to create engaging new products...

  • Page 8
    ... profitable product to date. Management, marketing and sales teams are all expanded to support rapid growth in business. Best-selling EISA 486 series generates significant month-over-month profit. Intel Corporation significantly increases business credit line to ASUS (more than 5x times the original...

  • Page 9
    ...-mount technology (SMT) assembly line is added. China Credit Information Service Ltd. ranks the company's business performance at 7th place among the top 500 manufacturers in 1992 and its sales revenue at 263. With capital increase from retained earnings, the Company's total paid-in capital reaches...

  • Page 10
    ...Award. China Credit Information Service Ltd. ranks the Company's business performance 1st place among The Top 500 manufacturers in 1995. SEC grants Class II Stock listing. With capital increase from retained earnings, total paid-in capital reaches NT$1.2 billion. ASUS becomes publicly traded Company...

  • Page 11
    ... among Best Managed Companies in Taiwan. Finance Asia recognizes ASUS among Asia's Strongest Companies. With capital increase from retained earnings, total paid-in capital reaches NT$8.115 billion. Monthly sales exceeds NT$3 billion for the first time. With NT$20 million cash capital increase, total...

  • Page 12
    ... completed, bringing total office and production space to 322,842 sq. ft. Readers of PC Magazine award ASUS with Product of the Year Award for motherboard, Notebook, CD-ROM, and VGA products. Far Eastern Economic Review ranks ASUS quality and service in 4th place. Company reports sales revenue of NT...

  • Page 13
    ...increase from retained earnings, total paid-in capital reaches NT$22.817 billion. Product launch of the S200N Centrino Notebook - weighing only 905g - astonishes the market. The first 3G ASUS flip phone (J100) is launched. ASUS DiGiMatrix receives the Taiwan Outstanding Design Award. Company reports...

  • Page 14
    ... for Management of Technology. Company reports consolidated sales revenue of NT$560.235 billion, representing year-on-year growth of 45.49%. January 2007 January 2007 ASUS partners with Automobili Lamborghini to develop exclusive ASUS Lamborghini VX series notebook with powerful performance and...

  • Page 15
    ... officially divided. The brand-name business was the responsibility of ASUS while OEM/ODM was the responsibility of Pegatron Corporation and Unihan Corporation with each company focusing on creating their own value. The Dual Hundred-Million-Plan of ASUS is initiated, 100 million NTD budgeted to win...

  • Page 16
    ... international media groups. State-of-the-art Eee PC S101 is also launched. ASUS Eee product series promotes new products, including the all-in-one touch-panel screen computer Eee Top ET16 series with 15.6" touch screen. According to a 3C survey company, Business Computer News (BCN), Eee PC is named...

  • Page 17
    ... Eee PC Seashell, excellent superlight UX series and UX30 notebook, Eee Keyboard PC, CG 5290, super-thin Blue Burner SBC-04D1S-U, and professional and compact P30 notebook win iF Product Design awards. Company participates in the Taiwan Pavilion Shanghai Expo 2010 using the high-performance computer...

  • Page 18
    ... in Efficient Product Design" award as the ASUS-designed Super-Hybrid Engine (SHE) with super energy-saving technology is praised by the Environmental Protection Agency. ASUS Eee Pad Transformer wins the 2011 Taipei Computex Best Choice Award in the Best Design and Computer and Systems categories...

  • Page 19
    ... and PadFone win the Best Choice Gold Awards in the Computer & Systems and Innovative and Smart Mobile Device categories. Eee Box EB1033 wins the Green ICT Award, with recycling rates as high as 90%. ASUS P1 LED Projectors and O!Play Smart TV are awarded with Best Choice in the category of Display...

  • Page 20
    ... covered Innovative Design and Technological Scope, including premium game hardware and accessories, computer hardware and components, computer peripherals and equipment, Tablet PC, e-readers, mobile computing devices, display, and wireless portable products. Eight ASUS products win iF Design awards...

  • Page 21
    ... market. ASUS ROG launches the first mini ITX-based gaming computer motherboard, MAXIMUS VI Impact. Unlimited by PCB size, the Impact Power features an 8+2 digital power supply design with vertical erection to provide superior over-lock control. ASUS participates in the 2013 Taiwan Designers' Week...

  • Page 22
    ... laptop computers, 2 tablets, 3 desktop computers, plus motherboards, projectors, LED monitor, all-in-one PCs, and a tablet cover. ZenBook UX305 laptop and the S1 mobile LED projector are further honored with inclusion in the annual Good Design Best 100 list. An ASUS-powered supercomputer is awarded...

  • Page 23
    ... in Taiwan, Guang Hua 3C Purchase Magazine. ASUS laptop and motherboard products receive Channel Model Brand Awards. ASUS launches the world's fastest and most complete SuperSpeed+ USB 3.1 motherboard and expansion card. U.S. Forbes Magazine announces the 2014 World's Most Admired Company List...

  • Page 24
    III. Corporate Governance Report I. Corporate Organization (I) Organization Chart Effective date: 2014.12.31 20

  • Page 25
    ...-related product lines. Open Platform Business Group Manage R&D and operation of component-related product lines. R&D Center, ASUS Design Center, Firmware R&D Center, EM & Wireless Communication R&D Div., ASUS Mobile Application eXperience Center and Power R&D Div. Develop common R&D technology...

  • Page 26
    ...'s President of ACER Name Relation Jonathan 2nd Tsang, consanguinity Supervisor L.H. Yang Vice Chairman Vice Chairman 3,026,309 R.O.C. Jonathan Tsang 2014.06 3 1999.04 Chairman Jonney Shih 2nd Supervisor L.H. Yang consanguinity Note 3 Director R.O.C. Jerry Shen 2014.06 3 2002.05...

  • Page 27
    ... Capital Corp., Hua-Min Investment Co., Ltd., ASUSTEK HOLDINGS LIMITED、ASUS INTERNATIONAL LIMITED、ASUS HOLLAND B.V.、DEEP DELIGHT LIMITED、CHANNEL PILOT LIMITED、UNIMAX HOLDINGS LIMITED、NEXT SYSTEM LIMITED、WAVEFACE HOLDING COMPANY LIMITED and ASUS DIGITAL INTERNATIONAL PTE LTD. Director...

  • Page 28
    ... Title Name Sponsor Course Title Hour Chairman Jonney Shih 2015.01.29 President Jonathan Tsang 2015.01.29 Director Jerry Shen 2015.01.29 Director Eric Chen 2015.01.29 Director S.Y. Hsu 2015.01.29 Director Samson Hu 2015.01.29 2014.10.23 Supervisor Tze-Kaing Yang 2015.01.29...

  • Page 29
    ..., national exam & accounting, or law, finance, business accounting, or certified specialists or technicians business Independence Criteria(Note) Also an independent director of other public company 1 2 3 4 5 6 7 8 9 10 Name Jonney Shih Jonathan Tsang Jerry Shen Eric Chen S.Y. Hsu...

  • Page 30
    ... Information of the management Base Date: April 14th, 2015 Title Experience (Education) Title MBA of National Chiao Tung University Business Division's President of ACER Note 1 President Nationality/ Country of Origin Name Shares 30,093,638 4.05 0 0 0 0 Date Elected Shareholding % Other Position...

  • Page 31
    ... End Jan 29, 2015 TAIWAN CORPORATE GOVERNANCE ASSOCIATION Corporate Vice President Joe Hsieh Jan 29, 2015 Crime and Punishment of Insider Trading-Analysis of Judicial Example 3 Chief Financial Officer Sep. 30, 2014 David Chang Sep. 29, 2014 Accounting Research and Development Foundation in...

  • Page 32
    ... of part-time employees Remuneration of Directors Bonus to Directors Allowances (D) Severance Pay (C) The company The company Cash dividend dividend dividend dividend Stock Cash Stock Title Name Base Compensation (A) Profit Sharing- Employee Bonus (G) (B)(Note 1) Ratio of Total Remuneration...

  • Page 33
    ...Remuneration (A) Title The company Companies in the financial statements Name The company Companies in the financial statements Ratio of Total Remuneration (A+B+C) to Allowances (C) Net Income (%) Compensation Paid to Supervisors from an Invested Company Other Companies in Companies in than the...

  • Page 34
    ... and Allowances (C) Profit Sharing- Employee Bonus (D) Title The company Name Companies Companies The company The in the in the financial company financial Cash Stock statements statements dividend dividend Ratio of total Exercisable compensation Employee Stock (A+B+C+D) to net Options income...

  • Page 35
    4. Name of Managers who received dividend and the distribution of dividend Name Total Stock Dividend Cash Dividend (estimated amount) Ratio of Total Amount to Net Income (%) Title Chief Branding Officer Jonney Shih President Jonathan Tsang Chief Executive Officer Jerry Shen Corporate V.P. ...

  • Page 36
    III. Corporate governance (I) Board of Directors Board of Directors The attendance of Directors for the 7 (A) Board Meeting in 2014: Title Chairman Vice Chairman Director Director Director Director Director Name Jonney Shih Jonathan Tsang Jerry Shen Eric Chen S.Y. Hsu Joe Hsieh Samson Hu ...

  • Page 37
    ... between the company's supervisors and employees and shareholders: Supervisors may contact and communicate with employees and shareholders if it is necessary. (II) Communication between the company's supervisors and internal chief director and CPA: 1. Chief auditor shall submit audit report to the...

  • Page 38
    ... system and investor relation department to process relevant issues. (2) The company maintains close contacts with majority None shareholders for immediate control. V V 1. Does the company establish and disclose the Corporate Governance Best-Practice Principles based on "Corporate Governance Best...

  • Page 39
    ...Item 4. Does the company establish a communication channel and build a designated section on its website for stakeholders, as well as handle all the issues they care for in terms of corporate social responsibilities? V ASUS offers [email protected] at the "Contact Us" of ASUS has established the...

  • Page 40
    ... clients to provide relevant products and services. 6. The company follows the laws and regulation with emphasis on labor-employer relation, providing employment opportunity, creating own branding, expanding export, and fulfilling social responsibilities. 7. Other company: The governance matters are...

  • Page 41
    ... or engage in conduct exceeding the risk appetite of the company for the sake of personal gain. iv. The proportion of dividend payout to directors and senior managers in short-term performance and the payout time for a change in salary and remuneration should be determined with consideration of...

  • Page 42
    ... of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or Traded Over the Counter" has been met. 3. Operations of ASUS Compensation Committee: (1)The Remuneration Committee of the Company consists of 3 people. (2)Term of Committee Member: June 17, 2014 to...

  • Page 43
    ... the 2013 Remuneration Jul. 21, 2014 Distribution for Director and Supervisor, and 2014 Manger Year-End Salary Increase and Mid-Year Performance Bonus Distribution Proposal. The Company convened its Second Meeting of the Second Jan. 27, 2015 Compensation Committee and approved the 2014 Manager Year...

  • Page 44
    ... report and ASUS CSR website at http://csr.asus.com. (2) The company offers new employee courses related to their None work with coverage on social responsibility education and training. (3) The company establishes corporate sustainability None development office with full-time responsibility...

  • Page 45
    ... up on the corporate sustainability report and ASUS CSR website. ASUS products have undergone ecological design to enhance energy use efficiency for reduction in greenhouse gases. 3. Preserving Public Welfare (1) Does the company formulate appropriate management policies and procedures according...

  • Page 46
    ... personal development. The company upholds to concept of "Level-based teaching" and using corporate core value and functions required for all levels as the basis to evaluate the personal work requirement. Supervisors and employees will jointly discuss to plan the personal annual learning growth plan...

  • Page 47
    ... website to disclose None information related to corporate social responsibility both from time to time and routinely, issue corporate sustainability report, and disclose relevant information on the Public Observation Post System. 5. If the Company has established the corporate social responsibility...

  • Page 48
    Corporate Social Responsibility (CSR) is an index used for assessing the development of enterprise companies. ASUS continues to develop programs that monitor and support corporate responsibility across all aspects of the business, with special emphases placed on employee and environmental well-being...

  • Page 49
    ... protection, and developing energy-saving technology. In 2008, ASUS established the ASUS Culture Foundation, calling for employees to perform public service for the good of society. The ASUS Culture Foundation has been connecting and cooperating with government and non-profit organizations since its...

  • Page 50
    ... centers. The total number of direct and indirect beneficiaries was approximately 11,960 people. Facebook sites shared information about the program: ASUS Digital Learning and Sharing Platform connects the world with love https://www.facebook.com/groups/asuselearning. Additionally, Daai HD TV Green...

  • Page 51
    ... for its quality, performance and teaching. Many international cheerleading squads and fans from England, Korea, Malaysia and Singapore have come to Taiwan to exchange with MONSTER. Additionally, MONSTER has participated in key activities and festivals at the ASUS corporate annual party, family day...

  • Page 52
    ...teaching material related to science and culture for schools. (4) Pingtung Sandimen Dashe village Five-Year Biotech Restructuring Plan (5th year) The 2014 annual plan was extended from 2013, where service development was incorporated with organizational work. The care service supports employment and...

  • Page 53
    ... through collective learning and daily observations. (5) Visit Taiwan and Happy Market Place ASUS promotes the local environment and also promotes healthy agriculture in Taiwan, supporting the production of the food used in local cuisines. The goal is to help employees understand the respect...

  • Page 54
    ... in Corporate Social Responsibility Disclosure by Taiwan Stock Exchange. 2011/2010 - Participate in the CDP Supply Chain Program Carbon Disclosure Project (CDP); also asked suppliers to complete questionnaires and disclose strategies to address global climate change issues. 2010 - Received the Gold...

  • Page 55
    ... Oekom. This was the highest grade among international brands in the competition. For more information about ASUS corporate social responsibility, please visit http://csr.asus.com/english. To view ASUS business operation reports, please visit http://csr.asus.com/chinese/index.aspx#120 or http://csr...

  • Page 56
    ... the policy of company's management of integrity as well as the commitment from the Board of Directors and Managerial Level for progressive implementation. 2. To advocate and promote integral conducts, ASUS not None only announces relevant standards on the internal website for employee review but...

  • Page 57
    ... and internal control system, the company may not retain external account or secret accounts. The internal auditors shall routinely audit the compliance of previous system in addition to reporting to the Board of Directors. "Employee Ethical Conduct Principles" is required None course for all ASUS...

  • Page 58
    ...integrity management related information at the company's Corporate Social Responsibility (CSR) None and investor website when necessary. 2. In addition to the company website, disclosure the implementation of integral operation on the financial None statement and public statement. 5. If the company...

  • Page 59
    ... correctness in the announcement of public ASUS information. The operating procedures and the educational advocacy for relevant laws and regulations should be communicated to the company directors, supervisors, managers, and all employees through internal company website, contracts, and courses and...

  • Page 60
    ... of the Board of Directors: Date Jan 21, 2014 Mar 27, 2014 Major resolutions Adopted contribution to "ASUS CULTURAL AND EDUCATIONAL FOUNDATION." 1. Report on 2013 Operations. 2. Recognition of ASUS 2013 Final Accounts and Consolidated Financial Statements and Report. 3. Recognized 2013 ASUS Earning...

  • Page 61
    ...to "Internal Control Self-Inspection Operation Procedure." 4. Adopted resolution of the 2015 Annual Audit Plan for the Company. Adopted 2014 contribution resolution from the Company to "ASUS Culture Foundation" Jan 29, 2015 (XII) Major Issues of Record or Written Statements Made by Any Director or...

  • Page 62
    ... CPA's information: The Company replaced the attesting CPA in 2014 due to internal job rotation of the accounting firm. VI. If the chairman, president, and financial or accounting manager of the company who had worked for the independent auditor or the related party in the most recent year, the name...

  • Page 63
    ... by Nominee Arrangement Shares ASUS's Royal Bank of Scotland FS Pacific Investment Account with CitiBank Jonney Shih ASUS's Certificate of Depository with CitiBank (Taiwan) Cathay Bank Commissioned Unlimited Growth International Co., Ltd. Investment Chase Bank managed Saudi Arabia Central...

  • Page 64
    ...INC. JOINT POWER EXPONENT, LTD. YU-LIAN TECHNOLOGY CO., LTD. JIE-LI TECHNOLOGY CO., LTD. ASUS COMPUTER INTERNATIONAL ASUS HOLLAND B. V. ASUS INTERNATIONAL LIMITED ASUSTEK HOLDINGS LIMITED ASUS GLOBAL PTE.LTD ASUS DIGITAL INTERNATIONAL PTE. LTD. DEEP DELIGHT LIMITED Ownership by the Company Shares 19...

  • Page 65
    ... TECHNOLOGY (VIETNAM) CO., LTD. ASUSTEK ITALY S. R. L. ASUS IBERICA S. L. ASUS JAPAN INCORPORATION ASUS COMPUTER CZECH REPUBLIC S. R. O. ASUS CZECH SERVICE S. R. O. ASUS SERVICE AUSTRALIA PTY LIMITED Ownership by the Company Shares % Direct or Indirect Ownership by Directors, Supervisors, Managers...

  • Page 66
    ...PRIVATE LIMITED ASUS ISRAEL (TECHNOLOGY) LTD. ASUS SERVICE INDONESIA PTE. LTD. ACBZ IMPORTACAO E COMERCIO LTDA. ASUS PERU S. A. C. ASUS HOLDINGS MEXICO, S. A. DE C.V. ASUS MEXICO, S.A. DE C.V. Ownership by the Company Shares % Direct or Indirect Ownership by Directors, Supervisors, Managers Shares...

  • Page 67
    ... GREAT EXTEND INVESTMENT CORP. ASUS CLOUD SINGAPORE PTE. LTD. ASUS CLOUD (LUXEMBOURG) S. A. R. L ASUS CLOUD (TIANJIN) INFORMATION TECHNOLOGY CO., LTD. ASKEY INTERNATIONAL CORP. DYNALINK INTERNATIONAL CORP. MAGIC INTERNATIONAL CO., LTD. ASKEY (VIETNAM) COMPANY LIMITED (be liquidated) WISE ACCESS...

  • Page 68
    ...SEMICONDUCTOR CORP. UPI SEMICONDUCTOR CORPORATION (HK) LTD. UPI-SEMICONDUCTOR CORPORATION (SHENZHEN) LTD. NEXT SYSTEM LIMITED LITEMAX ELECTRONICS INC. POTIX CORPORATION (CAYMAN) Ownership by the Company Shares % Direct or Indirect Ownership by Directors, Supervisors, Managers Shares % 1,000 300 15...

  • Page 69
    ...Capital and shares (1) History of capitalization 1. Type of shares Base date: As of April 14, 2015 / Unit: Shares Authorized Shares Remarks Outstanding Shares Unissued shares Total (Note) 742,760,280 4,007,239,720 4,750,000,000 Type of Shares Order common stock Note: Listed stock 2. Issued Shares...

  • Page 70
    ... Month / Year Par value (NT$) Shares Amount (NT$ thousands) Paid-in Capital Shares Amount (NT$ thousands) Source of capital Remarks Capital Increased by Assets Other than Cash － 2003.07 10 2,450,000 24,500,000 2,281,740 22,817,400 Retained earnings $2.8286 billion Retained earnings $2.71174...

  • Page 71
    ... 2.73 5.42 1.78 0.99 0.63 0.95 1.26 2.57 3.52 4.89 3.50 3.42 3.21 65.13 100.00 800,001-1,000,000 Over 1,000,001 Total 2. Preferred Shares: None (4) List of Major Shareholders Base date: As of April 14, 2015 Shareholding Shareholder's Name Jonney Shih 30,093,638 Shareholding Percentage 4.05% 67

  • Page 72
    ...March 31, 2015 (Note 9) 359 310 325.82 - - 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 and shares. Note 2: Please base the information on the shares issued at yearned and the resolution for stock...

  • Page 73
    ... proposal developed by the Board of Directors. In a turbulent industry environment, the company faces with a growing stage for its corporate life cycle. In consideration of the company's long-term financial plan and the meeting shareholder demand for cash flow. The cash dividend issued each...

  • Page 74
    ...' Meeting through the distribution proposal developed by the Board of Directors. 2. Accounting process applied to the estimation base of dividend to employee and remuneration to directors and supervisors, outstanding shares computing base for stock dividend distribution, and the spread between...

  • Page 75
    ...that amount to the total amount of net income and total dividend to employees (3) Earnings per share including the proposed stock dividend to employees and remuneration to directors and supervisors: Not applicable since the stock dividend to employees and remuneration to directors and supervisors is...

  • Page 76
    ...(process) Item Issue date May 30, 1997 London / Luxembourg Note 1: Location for issuance and trade changed from London to Luxemburg starting March 28, 2013. US$235, 830,000 US$11.23 / GDR 21,000,000 GDRS One GDR stands for one common stock share of ASUS Note 2: The Company's stock exchange ratio has...

  • Page 77
    .../09/23 99/06/24 100/09/01 Total Number of Remainder for Issuance D 25,478,476 56...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...

  • Page 78
    ... new stock shares are issued in recent years and up to the date of the annual report printed, the information of the merger and the merged or acquired company must be disclosed: None. VIII. Fund implementation plan Up to the last quarter before the printing of the financial statements, outstanding...

  • Page 79
    ... g. LED displays h. Networking devices i. Advanced servers j. Portable projectors k. Wearables l. Smart home devices 2. Product development projects include: a. Digitally controlled wireless transmission technology for dual core CPU motherboard b. Advanced 3D graphics cards c. Multi-function, three...

  • Page 80
    ... latest technology currently in rapid development. It provides data access and/or application services by terminal installation and via internet connections to a remote server or device. ASUS plans to strategically introduce a series of cloud computing products that feature portability, ease-of-use...

  • Page 81
    ..., marketing strategy is an important factor in driving profit. As part of its competitive strategy, ASUS will continue to integrate new technology to increase product value. The company will also continue to emphasize its strengths in design by creating compact, thin, highly portable devices that...

  • Page 82
    ... computing. Product development covers two platforms, blending advanced digital technology and user experience. Open platform products include motherboards, graphic cards, desktops LCD, and network servers; system products include notebooks, smartphones and tablets. 2. Long-term development plan...

  • Page 83
    ... share. (3) Developing cloud computing market: In the near term, ASUS will introduce a series of cloud computing-related services and products designed to provide cloud computing solutions for mobile devices, multimedia entertainment, and electronic commerce. This solution will embrace the quality...

  • Page 84
    ... and Super Hybrid Engine (SHE) technology developed as the best solution to answer demand for lightweight, thin and powerful devices. ASUS has mature technology ready for the market as demand emerges. b. PC and tablet demand is expected to wane in 2015 as consumers shift to personal mobile computing...

  • Page 85
    ... of our management. Product and technological development: (1) Advantages: a. ASUS has created a strong R&D team for the development of motherboards, graphics cards, optical drives, laptops, servers, desktop computers, smartphones, tablets and wireless broadband mobile devices. The excellent...

  • Page 86
    ... in West Europe. The company provides global network services across 55 official websites requiring 31 languages to implement a strong local management strategy while cultivating local markets. d. ASUS launched the ZenFone smartphone in Q2 of 2014. Following launch in Taiwan, it gained first place...

  • Page 87
    ... of managing the production and sales of all three products at the same time. The company's operational synergy is far superior to others in the industry. c. The quality and technical demand for wireless broadband communication products is extremely high and ASUS holds the key technologies that...

  • Page 88
    ...to ASUSTeK Computer Inc. Refer to the annual report of other listed subsidiary companies for more information. III. Status of Employees Status of employees over the past two years and up to the date of the report printed April 15, 2015 As of Year 2013 2014 April 15, 2015 Direct Labor 0 0 0 Employee...

  • Page 89
    ... process. 2. ASUS will introduce energy management systems in focused efforts to save energy and reduce greenhouse gas emission. 3. ASUS will continue to invest in green design, green procurement, green production, and green marketing to fulfill its corporate social responsibility and commitment to...

  • Page 90
    ... Management) from IECQ in 2012, becoming the world's first computer company that has been awarded with such special prestige. Again, ASUS's commitment in environmental protection and green design are highly recognized. (2) After designing the first Taiwan laptop computer to comply with EPEAT Gold...

  • Page 91
    ... in the company receiving the Excellence in Efficient Product Design in 2011 and an Energy Star rating by the EPA of the United States. (5) ASUS won the Green ICT Award from the Best Choice Award in 2012 Taipei Computex. (6) ASUS halogen-free monitor, VW247H-HF and Bamboo notebook series, and U43SD...

  • Page 92
    ... help each worker learn and grow at work continuously, and to realize their potential. ASUS has a series of training courses and learning resources planned for the staff as a whole. The training course includes orientation, newly promoted director training, core value training, management functions...

  • Page 93
    ... and to promote management effectiveness. Plan core value training courses help staff generate ASUS DNA and upgrade work skills and performance. Individuals received 7.59 hours of training on average in 2014 with the following courses: Course Type Classroom E-learning Total Course 187 147...

  • Page 94
    ... coaching, managing interns, job development and enrichment to upgrade employee competence. The idea is to encourage employees to learn from daily operation systematically and apply the learned skills to work. Directors have 606 on-job training programs planned and arranged in 2014, representing...

  • Page 95
    ...the Company also implements occupational safety and health education and training for all employees and contractors. Special operations shall require assigning special operation supervisors at site in addition to cooperating with laws and regulations to carry out various environmental monitoring. In...

  • Page 96
    ..., 2014 ~ Oct 23, 2015 Content The line of credit of NT $ 1 billion or its equivalent in other foreign currencies. For MS OS licensing (Win 7, 8, 8.1) in China, the company changed to pay for royalties through annual fees. Restrictions Credit Taiwan Cooperative Contracts Bank Marketing Agreement...

  • Page 97
    ... of the parent Share capital Capital surplus Before Retained allocation earnings After allocation Other Equity Treasury shares Non-controlling interest Before Total allocation Equity After allocation 2010 Summarized financial information of fiscal year 2010~2014 (Note 2) 2011 2012 2013 2014 274,913...

  • Page 98
    ...controlling interests Earnings per share (non-retroactive) 2010 Summarized financial information of fiscal year 2010~2014 (Note 1) 2011 2012 2013 2014 477,408,049 65,383,788 21,709,964 3,687,550 25,397,514 19,714,405 19,714,405 23,461,100 43,175,505 19,470,409 243,996 42,926,013 As of April 15, 2015...

  • Page 99
    ... 2012 2013 2014 Before 97,720,047 105,259,662 allocation Note 1: The above financial information for each year was audited by CPA. Note 2: The 2010 land appraisal was conducted using the publicly assessed land value according to the laws and regulations. The land was assessed to increase in total...

  • Page 100
    ... Effect of Changes In Accounting Principles Consolidated net income Consolidated net income attributable to shareholders of the parent Earnings per share (non-retroactive) 2010 429,721,249 51,862,488 18,975,273 4,669,490 2,219,029 21,425,734 18,039,603 18,039,603 Summarized financial information of...

  • Page 101
    ... After allocation Current Liabilities Share capital Capital surplus Retained earnings Other Equity Treasury shares Before Total Equity allocation After allocation Before allocation After allocation 2010 Summarized Balance sheets of fiscal year 2010~2014 (Note 2) 2011 2012 2013 2014 155,550,385 3,241...

  • Page 102
    ...,895 2014 384,234,950 24,427,785 10,685,311 12,690,772 23,376,083 19,470,409 (Note 2) As of April 15, 2015 Note 1: The above financial information for each year was audited by CPA. Note 2: The 2015Q1 financial statements have not yet been audited by CPA up to the date of the report...

  • Page 103
    ...,250 104,033,226 N/A 2012 2013 2014 Long-term Liabilities Other Liabilities Total Liabilities Capital Stock Additional paid-in capital Before allocation Retained earnings After allocation Unrealized gain on financial instruments Cumulative translation adjustments Net loss not recognized as pension...

  • Page 104
    ...operations Income from discontinued operations Extraordinary Gain(Loss) Cumulative Effect of Changes In Accounting Principles Net income Earnings per share (non-retroactive) Summarized financial information of fiscal year 2010~2014...99 N/A 2012 2013 2014 Note 1: The above financial information for ...

  • Page 105
    ... liabilities to Financial assets structure Ratio of long-term (ï¼...) capital to Property, plant and equipment Current ratio (%) Solvency Quick ratio (%) (%) Times interest earned Account receivable turnover (times) Days sales in accounts receivable Inventory turnover (times) Operating Account payable...

  • Page 106
    ... total equity (3) Ratio of profit before tax to paid-in capital = Net income before tax / Paid-in capital (4) Profit ratio = Net income (loss) / Net sales (5) Earnings per share = (Profit attributable to shareholders of the parent - preferred stock dividend) / Weighted average stock shares issued...

  • Page 107
    ... + Long-term investment + Other non-current assets + Working capital) (Note 5) 6. Leverage: (1) Degree of operating leverage = (Net operating revenue - Variable operating cost and expense) / Operating income (Note 6) (2) Degree of financial leverage = Operating income / (Operating income - interest...

  • Page 108
    ... days in sales Fixed assets turnover (times) Total assets turnover (times) Ratio of return on total assets (%) Ratio of return on shareholders' equity (%) Operating Ratio to income Profitability paid-in Income capital (%) before tax Profit ratio (%) Earnings per share ($) (non-retroactive) Cash...

  • Page 109
    ... total assets (2) Ratio of return on shareholders' equity = Net income (loss) / Net average shareholders' equity (3) Ratio to paid-in capital = Net income before tax / Paid-in capital (4) Profit ratio = Net income (loss) / Net sales (5) Earnings per share = (Net income - preferred stock dividend...

  • Page 110
    Statement of Cash Flow. 2. Capital expenditure meant for the cash outflow of capital 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 amount...

  • Page 111
    ...Financial structure (ï¼...) Ratio of liabilities to assets Ratio of long-term capital to Property, plant and equipment Current ratio (%) Solvency (%) Quick ratio (%) Times interest earned Account receivable turnover (times) Days sales in accounts receivable Inventory turnover (times) Operating Account...

  • Page 112
    The root causes of the financial ratio change in the last two years: Ratio of long-term capital to Property, plant and equipment: Rise in long-term investment balance this period and decline in average real estate, factory and equipment net value caused the current long-term fund ratio to real ...

  • Page 113
    ... days in sales Fixed assets turnover (times) Total assets turnover (times) Ratio of return on total assets (%) Ratio of return on shareholders' equity (%) Ratio to Operating paid-in income Profitability capital Income before (%) tax Profit ratio (%) Earnings per share ($) (non-retroactive) Cash...

  • Page 114
    ... in the most recent years ASUSTek Computer Inc. SUPERVISORS' REPORT The Board of Directors has prepared the Company's 2014 business report, financial statements and distribution of profits. All of the above have been reviewed and determined to be correct and accurate by the undersigned. According...

  • Page 115
    ...for details. V. Separate Financial Statements and Report of Independent Accountants in the most recent years: Please refer to Page 217-263 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: None...

  • Page 116
    ... change: 1. Long-term investment, intangible assets and other assets: The current financial assets for sale - non-current and equity method investment increase. 2. Other equity: The foreign exchange difference converted by the current year in recognition of foreign operating institute's financial...

  • Page 117
    Separate Comparison of Financial Position Unit: NT$ thousands Year Item Current assets Property, plant and equipment Long-term investment, intangible assets and other assets Total assets Current liabilities Non-current liabilities Total liabilities Share capital Capital surplus Retained earnings ...

  • Page 118
    ... tax Income tax expense Profit for the year Other comprehensive income Financial statements translation differences of foreign operations Unrealized gain on valuation of available-for-sale financial assets Cash flow hedges Actuarial gain on defined benefit plan Share of other comprehensive income...

  • Page 119
    ...of the parent 2014 25,826,521 2013 22,061,034 Amount change 3,765,487 Ratio change (%) 17.07 Analysis of financial ratio change: 1. Non-operating income and expenses: Profits from derivative financial products and reduction in net foreign currency exchange profits. 2. Other comprehensive income...

  • Page 120
    ... equity method Total non-operating income and expenses Profit before income tax Income tax expenses Profit for the year Other comprehensive income Financial statements translation differences of foreign operations Unrealized gain on valuation of available-for-sale financial assets Share of other...

  • Page 121
    ... (32.94)ï¼... (36.89)ï¼... 2013 Financial ratio change Analysis of financial ratio change: 1. Decrease of cash flow ratio this year: The cash inflow from current operating activities was reduced while the account payables for material purchase and other payables increased the current liabilities, hence...

  • Page 122
    ... operating performance Gain or Loss in 2013 Root cause of profit or loss Corrective Investment Plans action Own brand business 1,899,000 Focus on brand marketing and 7,081,769 business development - - Note: Own brand business included: ASUS GLOBAL PTE. LTD., ASUS TECHNOLOGY PTE. LIMITED, ASUS...

  • Page 123
    ...1. Products development planned in 2014: (1) Digitally controlled wireless transmission technology for dual core CPU motherboard (2) Advanced 3D graphics cards (3) Multi-function, three-in-one smartphone & PadFone (Note) & FonePad (4) High-performance ultrabook (5) High-speed router / network switch...

  • Page 124
    ... switch, the patent of Blu-Ray, Bluetooth, thermal management method and device, Display, Bluetooth HS technology, notebooks, Eee PC, products of Wireless LAN, products of Wireless telecommunication, equipments with Android system, LTE function, multi-core ARM processor products, Google Chrome...

  • Page 125
    ... 7, 2014. The lawsuit currently has been officially held by the trial. The Company and its subsidiaries cannot presently determine the effect, but the Group expects that the above cases have no material effect on its operating and financial position. 2. The related party's major legal issues, non...

  • Page 126
    ...(2) Company profile of related party: Please refer to Page 127-131. (3) A controlling and hierarchical relationship according to Article 369.3 of Company Law: None (4) Business scope of ASUS Group: The business scope of ASUS and the related parties include computer-related product design, production...

  • Page 127
    ... Chart (2014.12.31) Asustek Computer Inc. 83.43% ASUS SHINEWAVE ASUS DIGITAL INTERNATIONAL INTERNATIONAL INTERNATIONAL 100% Hua-Cheng ASUS ASUST EK International ASMEDIA 100% ASUS LIMIT ED Corp. AGAiT T echnology TECHNOLOGY 100% Venture Capital 100% Holland TECHNOLOGY 50.99% HOLDINGS LIMIT ED...

  • Page 128
    ASUS Organization Chart (2014.12.31) - (1) (1) Asustek Computer Inc. 100% ASUS GLOBAL INTERNATIONAL 100% ASUS LIMIT ED 37.50% UPI Semiconductor PT E. LT D. Corp. 124 100% DEEP DELIGHT LIMIT ED LIMITED P ILOT CHANNEL 100% 100% UNIMAX HOLDINGS LIMIT ED 100% UBIQ Semiconductor 100% UPI Corp. ...

  • Page 129
    ASUS Organization Chart (2014.12.31) - (2) Asustek Computer Inc. 100% Askey Computer TECHNOLOGY 47% AAEON INC. Corp. 100% MAGIC INTERNATIONAL 100% Askey International ELECTRONICS, DEVELOPMENT TECHNOLOGY 100% 100% AAEON TECHNOLOGY (EUROPE) B.V. TECHNOLOGY 85% ONYX INVESTMENT HEALTHCARE ...

  • Page 130
    ... Organization Chart (2014.12.31) - (3) ASUS TECHNOLOGY P TE. LIMITED 100% ASUST EK ASUSTEK (UK) COMPUTER (S) 100% ASUS Polska COMPUTER COMPUTER 100% ASUS EGYPT L.L.C. Co., Ltd. S.R.L. SARL Benelux B.V. GmbH KOREA IT ALY FRANCE LIMITED 100% ASUS ASUST EK ASUS ASUS ASUS ASUS 100% 100% 99.93...

  • Page 131
    ...China Taiwan Samoa Taiwan Samoa Taiwan USA British Virgin Islands British Virgin Islands Vietnam Honk Kong Cayman Islands British Virgin Islands CAPITAL MAJOR BUSINESS / PRODUCTION ITEMS NAME OF CORPORATION ASUS COMPUTER INTERNATIONAL ASUS TECHNOLOGY INCORPORATION ASUS HOLLAND B.V. ASUS GLOBAL PTE...

  • Page 132
    ... DEVELOPMENT, INC. AAEON TECHNOLOGY CO., LTD. 402,384 Selling communication products 317 Manufacturing and selling computer peripherals 356,713 Computer peripherals business investment Manufacturing and selling computer peripheral spare 272,363 parts Manufacturing and selling industrial computers...

  • Page 133
    ... 3C business investment UPI-SEMICONDUCTOR CORPORATION (SHENZHEN) LTD. ASUS CLOUD CORPORATION ASUS CLOUD SINGAPORE PTE. LTD. ASUS CLOUD (LUXEMBOURG) S.A R.L ASUS CLOUD (TIANJIN) INFORMATION TECHNOLOGY CO., LTD. ASUSTEK HOLDINGS LIMITED WAVEFACE HOLDING COMPANY LIMITED ASUS INTERNATIONAL LTD. CHANNEL...

  • Page 134
    ...BUSINESS / PRODUCTION ITEMS DEEP DELIGHT LTD. 96.02.15 96.04.17 94.04.26 80.06.19 95.02.21 Netherlands Singapore Germany Taiwan Cayman Islands DATE OF ADDRESS ESTABLISHMENT 91.01.23 British Virgin Islands UNIMAX HOLDINGS LIMITED UNIMAX ELECTRONICS INC. ASUS TECHNOLOGY PTE. LIMITED ASUS COMPUTER...

  • Page 135
    ... ASUS SERVICE INDONESIA PTE. LTD. ASUS HOLDINGS MEXICO, S. A. DE C. V. ASUS MEXICO, S. A. DE C. V. ASUS HUNGARY SERVICES LIMITED LIABILITY COMPANY ASUS PORTUGAL, SOCIEDADE UNIPESSOAL LDA. ASUS SWITZERLAND GMBH ASUSTEK COMPUTER (SHANGHAI) CO. LTD. ASUS COMPUTER (SHANGHAI) CO., LTD. ASUS TECHNOLOGY...

  • Page 136
    ... COMPUTER INC.（Representative: Jonney Shih） ASUSTEK COMPUTER INC.（Representative: Jonathan Tsang） ASUSTEK COMPUTER INC.（Representative: Jerry Shen） ASMEDIA TECHNOLOGY INC. AAEON TECHNOLOGY INC. Hua-Cheng Venture Capital Corp.（Representative: Steve Kuo） FU YANG INVESTMENT LIMITED...

  • Page 137
    ... Director ASUS COMPUTER INTERNATIONAL Director President ASUS HOLLAND B. V. Chairman ASUS INTERNATIONAL LTD Chairman ASUSTEK HOLDINGS LIMITED Chairman Chairman ASUS GLOBAL PTE LTD. Director Director ASUS DIGITAL INTERNATIONL Chairman PTE. LTD. DEEP DELIGHT LTD CHANNEL PILOT LTD. ASUS TECHNOLOGY PTE...

  • Page 138
    ...Ou, Chang-Chu） ASUS TECHNOLOGY PTE LTD.（Representative: Hung, Wen-Chi） ASUS TECHNOLOGY PTE LTD.（Representative: Li, Yu-Lin） SHAREHOLDING SHARES 100.00% 100.00% 5,300 100.00% － ASUS COMPUTER BENELUX B. Director V. Director ASUS FRANCE SARL Director ASUSTEK(UK) LIMITED Director Chairman...

  • Page 139
    ... CORPORATION LIMITED AGAITECH HOLDING LTD. Chairman Director Director ASUSTEK HOLDING LIMITED （Representative: Jonney Shih） AGAIT TECHNOLOGY CORPORATION （Representative: Jerry Shen） AGAIT TECHNOLOGY CORPORATION （Representative: Jerry Shen） AGAIT TECHNOLOGY (H.K.) CORPORATION LIMITED...

  • Page 140
    NAME OF CORPORATION AGAIT TECHNOLOGY (SHENZHEN) LIMITED INTERNATIONAL UNITED TECHNOLOGY CO., LTD. GREAT EXTEND INVESTMENT CORP. ASUS CLOUD SINGAPORE PTE. LTD. ASUS CLOUD (LUXEMBOURG) S. A. R. L. ASUS CLOUD (TIANJIN) INFORMATION TECHNOLOGY CO., LTD. TITLE Director Director Director Chairman Director...

  • Page 141
    ...: Tina Chu) MAGICOM INTERNATIONAL CORP. Director LEADING PROFIT CO., LTD. UNI LEADER INTERNATIONAL LTD. OPENBASE LIMITED Director Director Director ASKEY COMMUNICATION GMBH Director ASKEY TECHNOLOGY (SHANGHAI) LTD. Chairman President Chairman & Presiden t Director Director Supervisor ASKEY...

  • Page 142
    ... ASKEY MAGICXPRESS (WUJIANG) CORP. Director Director Supervisor Note 1: (*) Standards for the English transliteration of company's name or individual's name. Note 2: The Chairman of ASUSTeK Computer Inc. was changed to Mr. Kevin (Fu-Neng) Lin on February 10th, 2015. The Chairman of Unimax was...

  • Page 143
    ... of Affiliated Enterprises In thousand NTD / as of 12/31/2014 CAPITAL NET WORTH TOTAL ASSETS TOTAL LIABILITIES NET OPERATING REVENUES OPERATING INCOME (LOSS) NET INCOME (LOSS) EARNING (LOSS) PER SHARE(NTD) NAME OF CORPORATION ASUS COMPUTER INTERNATIONAL 15,825 190,000 52,372 886,200 26,270 1,145...

  • Page 144
    NAME OF CORPORATION NET WORTH CAPITAL TOTAL ASSETS TOTAL LIABILITIES NET OPERATING REVENUES OPERATING INCOME (LOSS) NET INCOME (LOSS) EARNING (LOSS) PER SHARE(NTD) MAGIC INTERNATIONAL CO., LTD. 3,719,690 91,258 42,775 2,881,100 1,583 792,833 1,583 3,847 37,509 126,447 3,526,709 452,709 96,599...

  • Page 145
    NAME OF CORPORATION NET WORTH CAPITAL TOTAL ASSETS TOTAL LIABILITIES NET OPERATING REVENUES OPERATING INCOME (LOSS) NET INCOME (LOSS) EARNING (LOSS) PER SHARE(NTD) AGAIT TECHNOLOGY (SHENZHEN) LIMITED 34,848 76,436 402,384 317 356,713 272,363 960,000 155,085 18,375 291,468 3,847 1,154 150,000 ...

  • Page 146
    .... UPI-Semiconductor Corporation (Shenzhen) Ltd. ASUS CLOUD CORPORATION ASUS CLOUD SINGAPORE PTE. LTD. ASUS CLOUD (LUXEMBOURG) S.A R.L ASUS CLOUD (TIANJIN) INFORMATION TECHNOLOGY CO., LTD. ASUSTEK HOLDINGS LIMITED WAVEFACE HOLDING COMPANY LIMITED ASUS INTERNATIONAL LIMITED CHANNEL PILOT LIMITED

  • Page 147
    NAME OF CORPORATION NET WORTH CAPITAL TOTAL ASSETS TOTAL LIABILITIES NET OPERATING REVENUES OPERATING INCOME (LOSS) NET INCOME (LOSS) EARNING (LOSS) PER SHARE(NTD) DEEP DELIGHT LIMITED 205,725 213,030 1,405,875 9,835 1,924 4,078 2,463 2,040 51,674 479 447 100,049 14,426 1,919 1,847 4,309 1,154...

  • Page 148
    ...- ASUS COMPUTER CZECH REPUBLIC S. R. O. ASUS EGYPT L. L. C. ASUS CZECH SERVICE S. R. O. ASUS SERVICE AUSTRALIA PTY LIMITED ASUS AUSTRALIA PTY LIMITED ACBZ IMPORTACAO E COMERCIO LTDA. 144 ASUS INDIA PRIVATE LIMITED ASUS ISRAEL (TECHNOLOGY) LTD. ASUS PERU S. A. C. ASUS SERVICE INDONESIA PTE...

  • Page 149
    NAME OF CORPORATION NET WORTH CAPITAL TOTAL ASSETS TOTAL LIABILITIES NET OPERATING REVENUES OPERATING INCOME (LOSS) NET INCOME (LOSS) EARNING (LOSS) PER SHARE(NTD) ASUSTEK COMPUTER (SHANGHAI) CO. LTD. 338,211 83,325 1,604,194 224,579 1,620,622 7,960,881 4,982,402 2,978,479 8,505,711 220,437 ...

  • Page 150
    .... 3 32, No. 171, and NO. 174 4. 7. We he ereby declare ed that the Declaration D o of Internal Control was approved a by t the Board of f Directors n March h 19, 2015 unanimously u by the direct tors at the me eeting. A SUSTeK Computer Inc c. Chairma an: Jonney Shih S Presid dent: Jerry Shen 146

  • Page 151
    ... of December 31, 2014 and 2013, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years ended December 31, 2014 and 2013. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to...

  • Page 152
    ... and the reports of other auditors, the consolidated financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of ASUSTEK COMPUTER INC. and its subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their...

  • Page 153
    ... 23 4 Notes DECEMBER 31, 2014 AMOUNT % DECEMBER 31, 2013 AMOUNT % Financial assets at fair value through profit 6(2) or loss - current Available-for-sale financial assets - current 6(3) Derivative financial assets for hedging current Notes receivable Trade receivables Other receivables Inventories...

  • Page 154
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2014 AND 2013 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) LIABILITIES AND EQUITY Current liabilities Short-term borrowings Financial liabilities at fair value through profit or loss - current Derivative financial ...

  • Page 155
    ... tax Income tax expenses Profit for the year Other comprehensive income Financial statements translation differences of foreign operations Unrealized gain on valuation of available-for-sale financial assets Cash flow hedges Actuarial loss on defined benefit plan Share of other comprehensive income...

  • Page 156
    ... notes are an integral part of these consolidated financial statements. See report of independent accountants dated March 19, 2015. For the year ended December 31, 2013 Balance at January 1, 2013 Appropriations of 2012 earnings (Note 6(18)) Legal reserve Cash dividends Profit for the year Other...

  • Page 157
    ... increase in short-term borrowings Increase in long-term borrowings Redemption of long-term borrowings Payment of cash dividends Purchase of treasury shares Changes in non-controlling interest Others Net cash provided by (used in) financing activities Effects due to changes in exchange rate Increase...

  • Page 158
    ...products (including PCs, main boards, other boards and cards, tablet PCs, smart phones and other handheld devices, etc.). (2) The Company resolved to spin-off its OEM businesses on January 1, 2008. Pursuant to the Company's resolution, the Company transferred its computer OEM, design and manufacture...

  • Page 159
    ... International Accounting Standards Board July 1, 2010 July 1, 2011 January 1, 2013 July 1, 2011 January 1, 2013 January 1, 2013 (Investment entities: January 1, 2014) January 1, 2013 January 1, 2013 January 1, 2013 July 1, 2012 January 1, 2012 January 1, 2013 January 1, 2013 January 1, 2013 January...

  • Page 160
    ... disclosures for all transferred financial assets. Based on the Group's assessment, significant effects of applying the 2013 version of IFRSs to its consolidated financial statements are ways of presentation and disclosure. (3) International Financial Reporting Standards issued by IASB but not...

  • Page 161
    ... to IFRSs 2012-2014 Effective Date by International Accounting Standards Board January 1, 2016 July 1, 2014 January 1, 2016 January 1, 2014 January 1, 2014 January 1, 2014 July 1, 2014 July 1, 2014 January 1, 2016 The Group is assessing the potential impact on the financial position and results...

  • Page 162
    ... (A) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and operating policies. In general, control is presumed to exist when the parent...

  • Page 163
    ...INTERNATIONAL LIMITED (AIL) ASUSTEK HOLDINGS LIMITED (AHL) ASUS GLOBAL PTE. LTD. (ASGL) ASUS CLOUD CORPORATION (ASUSCLOUD) INTERNATIONAL UNITED TECHNOLOGY CO., LTD. (TAIWAN) (IUT) ASMEDIA TECHNOLOGY INC. (ASMEDIA) ASKEY COMPUTER CORP. (ASKEY) Investing in 3C products and computer peripheral business...

  • Page 164
    ... consulting about communication products Investing in ink-jet print heads and ink-jet digital image output technology business Designing, developing, and manufacturing high-speed analog circuit AAEON TECHNOLOGY Manufacturing and selling INC. (AAEON) industrial computers and computer peripherals UPI...

  • Page 165
    ... developing integrated circuits Designing, developing and manufacturing high-speed analog circuit Manufacturing and selling industrial computers and computer peripherals Investing in computer peripherals business Investing in computer peripherals business Selling smart vacuums 2014/12/31 0.01 2013...

  • Page 166
    ...industrial computers and computer peripherals Designing, developing and selling integrated circuits Selling integrated circuits and investing in technical support consulting business Selling integrated circuits and technical support consulting Investing in commerce service 2014/12/31 94.20 2013/12...

  • Page 167
    ...) Marketing 3C products in Egypt ASUS COMPUTER GMBH (ACG) ASUS COMPUTER BENELUX B. V. (ACBNL) ASUS FRANCE SARL (ACF) ASUSTEK (UK) LIMITED (ACUK) ASUS TECHNOLOGY (HONG KONG) LIMITED (ACHK) ASUS KOREA CO., LTD. (ACKR) ASUSTEK COMPUTER(S) PTE. LTD. (ACSG) ASUS POLSKA SP. Z O. O. (ACPL) ASUS TECHNOLOGY...

  • Page 168
    ...) UNIMAX ELECTRONICS INCORPORATION (UEI) ASUS COMPUTER (SHANGHAI) CO., LTD. (ACS) ASUS INVESTMENTS (SUZHOU) CO., LTD. (ACISZ) ASUS CZECH SERVICE S. R. O. (ACCZS) Main business activities Selling 3C products in India Marketing 3C products in Israel 2014/12/31 100.00 100.00 2013/12/31 100.00 100.00...

  • Page 169
    ... in foreign currencies at fair value through profit or loss are re-translated at the exchange rates prevailing at the end of the financial reporting period. The translation differences are recognized in profit or loss as part of the fair value gain or loss. Non-monetary assets and liabilities at...

  • Page 170
    ... with a documented risk management or investment strategy. B. On a regular way purchase or sale basis, financial assets designated as at fair value through profit or loss are recognized and derecognized using trade date accounting. C. Financial assets at fair value through profit or loss are...

  • Page 171
    ..., available-for-sale financial assets are recognized and derecognized using trade date accounting. C. Available-for-sale financial assets are initially recognized at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the...

  • Page 172
    ... is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate, and is recognized in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases...

  • Page 173
    ... by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses. (14) Investments accounted for under equity method...

  • Page 174
    ... the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group's ownership percentage of the associate but maintains significant influence on the associate, then "capital surplus" and "investments accounted...

  • Page 175
    ... Other intangible assets, mainly trademark and computer software, are amortised on a straight-line basis over their estimated useful lives of 1~10 years. (19) Impairment of non-financial assets A. The Group assesses at the end of the financial reporting period the recoverable amounts of those assets...

  • Page 176
    ...the non-interest bearing short-term payables, they are measured at the original invoice amount. (22) Financial liabilities at fair value through profit or loss A. Financial liabilities at fair value through profit or loss are financial liabilities held for trading or financial liabilities designated...

  • Page 177
    ... risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values...

  • Page 178
    ...the end of the financial reporting period less the fair value of plan assets, together with adjustments for unrecognized past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit...

  • Page 179
    ...should be recognized based on the accounting for changes in estimates. The Group calculates the number of shares of employees' stock bonus based on the fair value per share at the previous day of the shareholders' meeting held in the year following the financial reporting year, and after taking into...

  • Page 180
    ... of unused tax credits resulting from research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized. (29) Dividends Dividends are recorded in the Company's financial statements in the period...

  • Page 181
    ... than the fair value of the Group's share of the identifiable net assets acquired and liabilities assumed, the difference is recorded as profit. (32) Operating segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker...

  • Page 182
    ...less than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flow. B. Investment property The Group uses the main part of the investment property to...

  • Page 183
    ...The Group has no cash and cash equivalents pledged to others. (2) Financial assets and liabilities at fair value through profit or loss 2014/12/31 Current: Financial assets held for trading Open-end funds Capital guaranteed instruments Listed and OTC stocks Convertible bonds Non-hedging derivatives...

  • Page 184
    ...-2014/02 2013/11-2014/02 2013/12-2014/03 2013/11-2014/03 (A) Forward exchange contracts The Group entered into forward exchange contracts to sell various forward foreign currencies to hedge exchange rate risk of import and export proceeds. However, these forward exchange contracts are not accounted...

  • Page 185
    ... the floating-rate liability positions. However, these currency swap contracts are not accounted for under hedge accounting. C. The Group has no financial assets at fair value through profit or loss pledged to others. (3) Available-for-sale financial assets 2014/12/31 Current items: Listed and OTC...

  • Page 186
    ... Forward exchange contracts Fair value of derivative instruments designated as hedges $ 365,822 ( 234,997) 2014/12/31 2013/12/31 Period of anticipated cash flow 2015/01-2015/03 2013/09-2014/05 Period of gain (loss) expected to be recognized 2015/01-2015/03 2013/09-2014/05 A. The hedged highly...

  • Page 187
    ... 100,000 2013/10-2014/02 15,000 2013/10-2014/02 - Derivative financial liabilities for hedging: (6) Notes and trade receivables Notes receivable Trade receivables Less: allowance for sales returns and discounts Less: allowance for doubtful accounts (accumulated impairment) 2014/12/31 2013/12/31...

  • Page 188
    ... impairment) of trade receivables are as follows: 2014 Individual provision Group provision Total At January 1 $ 1,844,756 $ 583,419 $ 2,428,175 Recognition (reversal) 109,221 158,404 267,625 Write-offs ( 17,910) ( 46,660) ( 64,570) Reclassifications ( 90,189) 90,189 Net exchange differences 108,556...

  • Page 189
    ... Recognition (reversal) Write-offs ( Net exchange differences $ At December 31 1,766,850 38,201 7,345) 47,050 1,844,756 $ ( ( $ 2013 Group provision 712,442 132,510) 14,952) 18,439 583,419 $ ( ( $ Total 2,479,292 94,309) 22,297) 65,489 2,428,175 E. The credit quality of trade receivables that are...

  • Page 190
    ... $ 4,079,745 $ B. The fair value of the Group's associates which have quoted market price is as follows: Profit 84,626 29,933 Others $ 2014/12/31 262,789 $ 2013/12/31 157,695 On April 29, 2013, the Group disposed 103,017,000 shares of PEGA totaling $4,663,076 at the average price of $45.27 (in...

  • Page 191
    ... At January 1, 2014 Acquisitions Disposals Amortisation Reclassifications Net exchange differences Effect due to changes in consolidated entities At December 31, 2014 At December 31, 2014 Cost Accumulated amortisation and impairment $ ( $ $ Computer software Goodwill Others Total 358,664 $ 1,323...

  • Page 192
    ... projections based on financial budgets approved by the management covering a five-year period, and industy standard calculations are determined by reference to the business market value in consideration of the similar industries with the similar products, capital and operating revenues, etc. C. No...

  • Page 193
    ... Collateral - (13) Long-term borrowings Type of borrowings Credit borrowings installment-repayment Mega International Commercial Bank Borrowing period and repayment term Interest rate range Collateral 2014/12/31 2012.08.06~2015.08.06, payable in 3 semi-annual installments, commencing 2 years after...

  • Page 194
    Type of borrowings Credit borrowings installment-repayment Mega International Commercial Bank Borrowing period and repayment term Interest rate range Collateral 2013/12/31 2012.08.06~2015.08.06, 1.57%~ payable in 3 semi-annual 1.92% installments, commencing 2 years after the initial date of ...

  • Page 195
    ...January 1 18,412 Current service cost 4,160 Interest cost 15,836 Actuarial loss ( 562) Benefits paid ( 2,591) Net exchange differences and others $ 213,341 At December 31 (D) Changes in fair value of plan assets are as follows: $ 2014 198,152 3,939 784 298 562) 202,611 $ ( ( $ 2013 162,833 13,839...

  • Page 196
    ... the years ended December 31, 2014 2013 15,052) ($ 6,770) 10,264) $ 4,788 (G) The Bank of Taiwan was commissioned to manage the Fund of the Company's and domestic subsidiaries' defined benefit pension plan in accordance with the Fund's annual investment and utilization plan and the "Regulations for...

  • Page 197
    ... and experience in each territory. (I) Historical information of experience adjustments is as follows: For the years ended December 31, 2014 2013 2012 213,341) ($ 178,086) ($ 162,833) Present value of defined ($ benefit obligation 202,611 198,152 200,946 Fair value of plan assets ($ 10,730) $ 20,066...

  • Page 198
    ... is recognized in profit or loss within operating costs and expenses. (16) Common shares A. As of December 31, 2014, the Company's authorized capital was $47,500,000, consisting of 4,750,000,000 shares of common stock (including 50,000,000 shares which were reserved for employee stock options), and...

  • Page 199
    ... and Exchange Law, the number of shares bought back as treasury shares should not exceed 10% of the number of the Company's issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus...

  • Page 200
    ...-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, R.O.C. Securities and Exchange...

  • Page 201
    ... 2013 financial statements. Information on the appropriation of the Company's employees' bonus and directors' and supervisors' remuneration as proposed by the Board of Directors and resolved by the shareholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock...

  • Page 202
    ... January 1, 2014 ($ 234,997) -the Company -Subsidiaries 600,819 -Associates At December 31, 2014 $ 365,822 Unrealized gain on valuation of available-for-sale financial assets $ 7,353,574 20,639,841 18,349 13 $ 28,011,777 Financial statements translation differences of foreign operations Total ($ 271...

  • Page 203
    ... ended December 31, 2014 2013 45,544 $ 32,351 3,101,460 ( ( 3,033,256) 396,135 1,018,037 1,527,920 $ 194,781) 2,809,730 1,583,541 1,025,805 5,256,646 Net gains (losses) on non-derivative financial instruments Net gains (losses) on derivative financial instruments Net currency exchange gains (losses...

  • Page 204
    ... 7) 275,490 Changes in fair value on available-for-sale financial assets Currency translation differences Actuarial gains/losses on defined benefit obligations ($ ( ($ B. Reconciliation between income tax expense and accounting profit: For the years ended December 31, 2014 2013 4,661,022 $ 4,741...

  • Page 205
    ... Currency translation differences Unrealized gain on valuation of available-for-sale financial assets Others Subtotal Total ( ( ( profit or loss comprehensive income Effect due to changes in consolidated entities Effect of exchange difference December 31 $ 2,070,786 $ 503,644 89,460 ( 1,064...

  • Page 206
    ...2015 2016 2017 2018 2019 2020 2021 2016-2022 2018-2023 2019-2024 2013/12/31 Year incurred 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Amount filed/... has examined the Company's income tax returns through 2011. H. Unappropriated retained earnings: 2014/12/31 2013/12/31 Earnings ...

  • Page 207
    I. Imputation credit account (ICA) and creditable ratio: (A) ICA balance $ 2014/12/31 13,200,713 2014 (Expected) 16.47% $ 2013/12/31 12,919,477 2013 (Actual) 16.17% (B) Creditable ratio for earnings distribution Effective from January 1, 2015, the estimated creditable ratio for distribution ...

  • Page 208
    ...the years ended December 31, 2014 and 2013, respectively. Information about the future aggregate minimum lease payments under non-cancellable operating leases is provided in Note 9. 7. RELATED PARTY TRANSACTIONS (1) Parent and ultimate controlling party The Company's shares are widely held, so there...

  • Page 209
    ... switch, the patent of Blu-Ray, Bluetooth, thermal management method and device, Display, Bluetooth HS technology, notebooks, Eee PC, products of Wireless LAN, products of Wireless telecommunication, equipments with Android system, LTE function, multi-core ARM processor products, Google Chrome...

  • Page 210
    ... the financial statements. (B) Several patentees filed lawsuits or investigations for patent infringement including interactive video system, communication switch technique, Tablet PC with user-selectable log in and unlock function, products of display technology, Padfone series products, NOR Flash...

  • Page 211
    ... $ 1,501,648 Fair value 2013/12/31 Book value Fair value B. Financial risk management policies (A) The Group's operating activities expose the Group to a variety of financial risks, including market risk (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity...

  • Page 212
    ...financial instruments to hedge the fair value risk and cash flow risk due to foreign exchange rate fluctuations. The Group monitors at any time and pre-sets a "stop loss" amount to limit its foreign exchange risk. e. The Group's businesses involve some non-functional currency operations (the Company...

  • Page 213
    ...income Exchange rate Book value (NTD) 29.805 41.090 $ 44,751,900 12,403,218 1% 1% $ 447,519 124,032 $ - Price risk a. The Group is exposed to equity securities price risk because of investments held by the Group either as available-for-sale or at fair value through profit or loss. To manage...

  • Page 214
    ... and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set by the board of directors based on internal or external ratings. The...

  • Page 215
    b. No credit limits were exceeded during the years ended December 31, 2014 and 2013, and management does not expect any significant losses from non-performance by these counterparties. c. The credit quality information of financial assets that are neither past due nor impaired, the ageing analysis ...

  • Page 216
    2014/12/31 Less than 1 year Non-derivative financial liabilities: Short-term borrowings Notes and trade payables Other payables - accrued expenses Long-term borrowings (including current portion) Other financial liabilities Derivative financial liabilities: Forward exchange contracts Between 1 and 2...

  • Page 217
    ...through profit or loss Open-end funds Capital guaranteed instruments Listed and OTC stocks Convertible bonds Forward exchange contracts Currency option contracts Currency swap contracts Derivative financial assets for hedging Available-for-sale financial assets Listed and OTC stocks Unlisted and non...

  • Page 218
    ...B. The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the financial reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or...

  • Page 219
    ... described in Note 4 of the consolidated financial statements are the same. (3) Segment information The segment information provided to the chief operating decision-maker for the reportable segments is as follows: For the year ended December 31, 2014 3C Brand Others Total 435,443,568 $ 41,964,481...

  • Page 220
    ... adjustment Unallocated profit (loss) Reportable operating segments' profit (5) Geographical information Geographical information for the years ended December 31, 2014 and 2013 is as follows: For the years ended December 31, 2014 2013 Revenue Non-current assets Revenue Non-current assets Taiwan $ 65...

  • Page 221
    ... of ASUSTEK COMPUTER INC. as of December 31, 2014 and 2013, and the related separate statements of comprehensive income, of changes in equity and of cash flows for the years ended December 31, 2014 and 2013. These separate financial statements are the responsibility of the Company's management. Our...

  • Page 222
    ... on our audits and the reports of other auditors, the separate financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of ASUSTEK COMPUTER INC. as of December 31, 2014 and 2013, and the results of its operations and its cash flows for...

  • Page 223
    ... 31, 2014 AMOUNT % DECEMBER 31, 2013 AMOUNT % Financial assets at fair value through profit 6(2) or loss - current Available-for-sale financial assets - current 6(3) Trade receivables Trade receivables - related parties Other receivables Inventories Prepayments Other current assets Total current...

  • Page 224
    ...665 27 9 1 1 38 $ 53,931,854 20,143,109 1,522,963 2,135,835 702,462 78,436,223 25 9 1 1 36 Notes DECEMBER 31, 2014 AMOUNT % DECEMBER 31, 2013 AMOUNT % The accompanying notes are an integral part of these separate financial statements. See report of independent accountants dated March 19, 2015. 220

  • Page 225
    ...profit Unrealized (profit) loss from sales Realized gross profit Operating expenses Selling expenses General and administrative expenses Research and development expenses Total operating expenses Operating profit Non-operating income and expenses Other income Other gains (losses) Finance costs Share...

  • Page 226
    ASUSTEK COMPUTER INC. SEPARATE STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) Capital Surplus Retained Earnings Other equity Common shares Others Legal reserve Share premium Special reserve Unappropriated retained ...

  • Page 227
    ... accounted for under equity method (Gain) loss on disposal of investments Impairment loss on financial assets Unrealized profit (loss) from sales Others Changes in assets/liabilities relating to operating activities Financial assets at fair value through profit or loss Trade receivables Trade...

  • Page 228
    ...products (including PCs, main boards, other boards and cards, tablet PCs, smart phones and other handheld devices, etc.). (2) The Company resolved to spin-off its OEM businesses on January 1, 2008. Pursuant to the Company's resolution, the Company transferred its computer OEM, design and manufacture...

  • Page 229
    ... International Accounting Standards Board July 1, 2010 July 1, 2011 January 1, 2013 July 1, 2011 January 1, 2013 January 1, 2013 (Investment entities: January 1, 2014) January 1, 2013 January 1, 2013 January 1, 2013 July 1, 2012 January 1, 2012 January 1, 2013 January 1, 2013 January 1, 2013 January...

  • Page 230
    ... additional information about fair value measurements accordingly. Based on the Company's assessment, significant effects of applying the 2013 version of IFRS s to its separate financial statements are ways of presentation and disclosure. (3) International Financial Reporting Standards issued by...

  • Page 231
    ... to IFRSs 2011-2013 Improvements to IFRSs 2012-2014 Effective Date by International Accounting Standards Board January 1, 2014 July 1, 2014 July 1, 2014 January 1, 2016 The Company is assessing the potential impact on the financial position and results of operations of the new standards...

  • Page 232
    ... in foreign currencies at fair value through profit or loss are re-translated at the exchange rates prevailing at the end of the financial reporting period. The translation differences are recognized in profit or loss as part of the fair value gain or loss. Non-monetary assets and liabilities at...

  • Page 233
    ... with a documented risk management or investment strategy. B. On a regular way purchase or sale basis, financial assets designated as at fair value through profit or loss are recognized and derecognized using trade date accounting. C. Financial assets at fair value through profit or loss are...

  • Page 234
    ..., available-for-sale financial assets are recognized and derecognized using trade date accounting. C. Available-for-sale financial assets are initially recognized at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the...

  • Page 235
    ... reversed through profit or loss. Impairment loss is recognized and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account. (10) Derecognition of financial assets The Company derecognizes a financial asset when one of the following conditions is met...

  • Page 236
    ... by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses. (13) Investments accounted for under equity method...

  • Page 237
    ... in a change in the Company's ownership percentage of the associate but maintains significant influence on the associate, then "capital surplus" and "investments accounted for under equity method" shall be adjusted for the increase or decrease of its share of equity interest. If the above condition...

  • Page 238
    ... replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. C. Except for land which is not depreciated, other property, plant and equipment apply cost model and are depreciated using the straight-line method...

  • Page 239
    ... non-interesting bearing short-term payables, they are measured at the original invoice amount. (20) Financial liabilities at fair value through profit or loss A. Financial liabilities at fair value through profit or loss are financial liabilities held for trading or financial liabilities designated...

  • Page 240
    ... the end of the financial reporting period less the fair value of plan assets, together with adjustments for unrecognized past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined...

  • Page 241
    ... be recognized based on the accounting for changes in estimates. The Company calculates the number of shares of employees' stock bonus based on the fair value per share at the previous day of the shareholders' meeting held in the year following the financial reporting year, and after taking into...

  • Page 242
    ... of unused tax credits resulting from research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized. (27) Dividends Dividends are recorded in the Company's financial statements in the period...

  • Page 243
    ... than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flow. B. Investment property The Company uses the main part of the investment property to...

  • Page 244
    ...assets at fair value through profit or loss 2014/12/31 Current: Financial assets held for trading Open-end funds Convertible bonds 2013/12/31 $ $ 3,289,216 131,535 3,420,751 $ $ 7,461,838 76,068 7,537,906 A. The Company recognized net gain on financial assets held for trading amounting to $40...

  • Page 245
    ... B. The Company has no financial assets measured at cost pledged to others. (5) Trade receivables (including related parties) 2014/12/31 Trade receivables (including related parties) Less: allowance for doubtful accounts (accumulated impairment) $ ( $ 93,476,191 $ 111,476) ( 93,364,715 $ 2013/12/31...

  • Page 246
    ... 10,099 - ( 1,772) ( 1,772) - $ 21,528 $ 21,528 C. The credit quality of trade receivables (including related parties) that are neither past due nor impaired based on the Company's Credit Quality Control Policy is as follows: 2014/12/31 Group 1 Group 2 $ 2013/12/31 86,360,702 $ 65,419,690 5,964...

  • Page 247
    ...086 A. Subsidiaries (A) Information about the Company's subsidiaries is provided in Note 4(3) of the 2014 consolidated financial statements (not presented herein). (B) The Company invested USD 3,000,000 to establish ASUS GLOBAL PTE. LTD. (ASGL) on April 2, 2013 and infused additional capital of USD...

  • Page 248
    ... financial information of the Company's associates is summarized below: 2014/12/31 2013/12/31 $ $ Assets 917,258 $ Liabilities 689,325 $ Revenue Profit (loss) 1,284,192 ($ 53,372) 965,4950 $ 691,193 $ 1,958,818 $ 22,801 C. On April 29, 2013, the Company disposed 103,017,000 shares of PEGA totaling...

  • Page 249
    ...Bank of Taiwan, the trustee. The pension costs under the above pension plan were $794 and $675 for the years ended December 31, 2014 and 2013, respectively. B. Effective July 1, 2005, the Company has established a defined contribution pension plan (New Plan) under the Labor Pension Act, covering all...

  • Page 250
    ...2014, the Company issued Global Depositary Receipts (GDRs), of which 5,691,000 units of the GDRs are now listed on the Luxembourg Stock Exchange (The Board of Directors authorized to transfer its GDRs from the London Stock Exchange to the Luxembourg Stock Exchange on January 30, 2013, and the change...

  • Page 251
    ... and Exchange Law, the number of shares bought back as treasury shares should not exceed 10% of the number of the Company's issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus...

  • Page 252
    .... In light of the long-term financial plan of the Company and the demand for cash by the shareholders, the Company should distribute cash dividends of not less than 10% of the total dividends declared. C. Except for covering accumulated deficit, increasing capital or payment of cash in proportion...

  • Page 253
    ... 2013 financial statements. Information on the appropriation of the Company's employees' bonus and directors' and supervisors' remuneration as proposed by the Board of Directors and resolved by the shareholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock...

  • Page 254
    ... ($ 234,997) -the Company -Subsidiaries 600,819 -Associates At December 31, 2014 $ 365,822 Unrealized gain on valuation of available-for-sale financial assets $ 7,353,574 20,639,841 18,349 13 $ 28,011,777 Financial statements translation differences of foreign operations Total ($ 271,393) $ 6,847...

  • Page 255
    ...,283 197,283 183,564 8,759,016 $ $ The Company's headcount totaled 6,067 and 5,226 employees as of December 31, 2014 and 2013, respectively. Note: Including the pension expense under the defined contribution plans and defined benefit plans. (20) Income tax A. Income tax expenses (A) Components of...

  • Page 256
    ...: For the years ended December 31, 2014 2013 Changes in fair value on ($ 795,281) $ 298,871 available-for-sale financial assets 321,338 8,955 Currency translation differences ($ 473,943) $ 307,826 B. Reconciliation between income tax expenses and accounting profit: For the years ended December 31...

  • Page 257
    ...$ 92,892,609 $ 2013/12/31 90,066,124 F. Imputation credit account (ICA) and creditable ratio: (A) ICA balance (B) Creditable ratio for earnings distribution 2014/12/31 $ 13,200,713 2014 (Expected) 16.47% 2013/12/31 $ 12,919,477 2013 (Actual) 16.17% Effective from January 1, 2015, the estimated...

  • Page 258
    ...the years ended December 31, 2014 and 2013, respectively. Information about the future aggregate minimum lease payments under non-cancellable operating leases is provided in Note 9. 7. RELATED PARTY TRANSACTIONS (1) Parent and ultimate controlling party The Company's shares are widely held, so there...

  • Page 259
    ...84 354,879,354 The sales prices of transactions with related parties were decided on the basis of the economic environment and market competition in each sales area. The terms of the transactions are due 30 to 180 days after the date of delivery or open account 30 to 60 days. The terms of the above...

  • Page 260
    ... including LAN chip, PCI-Express switch, the patent of Blu-Ray, Bluetooth, thermal management method and device, Display, Bluetooth HS technology, products of Wireless telecommunication, equipments with Andriod system, LTE function, multi-core ARM processor products, Google Chrome, products with...

  • Page 261
    ... log in and unlock function, products of display technology, Padfone series products, NOR Flash and XtraROM chip products, e-sports mouse, products with memory and access function, LED contained in Pad, write-once Blu-ray disc and products and/or services for online gaming against the Company...

  • Page 262
    ...'s financial position and financial performance. (B) The Company's key financial plans are all reviewed by the board of directors under the related principles and internal control system. When executing the financial plans, the Company's treasury departments will follow the financial operating...

  • Page 263
    .... d. The Company's businesses involve some non-functional currency operations (the Company's functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows: 2014/12/31...

  • Page 264
    ... entity in the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past...

  • Page 265
    b. No credit limits were exceeded during 2014 and 2013, and management does not expect any significant losses from non-performance by these counterparties. c. The credit quality information of financial assets that are neither past due nor impaired, the aging analysis of financial assets that were ...

  • Page 266
    ... Company's financial assets and liabilities that are measured at fair value. Level 1 Financial assets: Financial assets at fair value through profit or loss Open-end funds Convertible bonds Available-for-sale financial assets Listed and OTC stocks Unlisted and non-OTC stocks Convertible bonds 2014...

  • Page 267
    ...The following table presents the changes in level 3 instruments for the years ended December 31, 2014 and 2013. For the years ended December 31, 2014 2013 At January 1 Acquisitions Capital reduction At December 31 13. OPERATING SEGMENT INFORMATION Not applicable. $ $ 372 $ 7,575 - ( 7,947 $ 373...

  • Page 268
    ASUSTe ek Com mpute er Inc. Cha airman n