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321
2357
ASUSTeK Computer Inc.
2015 ANNUAL REPORT
yTaiwan Stock Exchange Market Observation Post SystemǺhttp://mops.twse.com.tw
yASUS annual report is available at http://www.asus.com
Printed on April 11, 2016

Table of contents

  • Page 1
    2357 ASUSTeK Computer Inc. 2015 ANNUAL REPORT yTaiwan Stock Exchange Market Observation Post SystemǺhttp://mops.twse.com.tw yASUS annual report is available at http://www.asus.com Printed on April 11, 2016 321

  • Page 2
    ..., Taiwan Address : 27F., No.333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City 110 Tel. : (886) 2 2729-6666 E-mail : 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
    ... with new stock shares issued...8. Fund implementation plan ...V. Overview of business operation...1. Principal activities ...2. Market analysis and the condition of sale and production ...3. Status of employees ...4. Expenditure on environmental protection ...5. Employee / employer relation...

  • Page 4
    ... statements in the most recent years ...118 6. Impact of financial difficulties of the Company and related party on the Company's financial position ...VII. Review of financial position, financial performance and risk management ... 118 119 1. Financial position ...119 2. Financial performance...

  • Page 5
    ... key markets. The ASUS brand promise of In Search of Incredible continues to inspire everything we do. In 2016, we have been actively pursuing ambitious goals that will drive business. As we focus on product design and customer experience, we are executing channel marketing and cost management plans...

  • Page 6
    ...growth across major product lines. We will maintain a focus on developing IoT products and services in order to secure long-term competitive advantages. Through the combined efforts of our world-class talent, we will aspire to become the most admired leading enterprise in the new digital era, and we...

  • Page 7
    ... company to reinforce marketing capability. The sales of high-unit-price EISA 486 product were satisfactory and this product helped the company generate millions of dollars of profit. INTEL (USA) provided the company with O/A credit five times over the original quota. Increased the paid-in capital...

  • Page 8
    ...board. Increased the paid-in capital to NT$199 million with cash for an amount of NT$49 million. Invested to set up a SMT production line. China Credit Information Service Ltd. had the company's business performance ranked in the 7th place of the TOP-500 Manufacturers in 1992 and the company's sales...

  • Page 9
    ... company's business performance ranked in the 1st place of "The TOP-500 Manufacturers in 1995". SEC had the company authorized as Class II stock listing company. Increased the paid-in capital to NT$1.2 billion with retained earnings. ASUS officially went public at Taiwan Stock Exchange Corporation...

  • Page 10
    ... million motherboards manufactured monthly. Presented the lightest all-in-one NB. The company was certified with ISO-14000. Asia Week had the company ranked in the first place of The International Chinese Enterprises 500 & Top-10 Manufacturer in 1998. Asia Week had the company's business performance...

  • Page 11
    ... best assets-management business of "1999 Taiwan TOP 500." China Credit Information Service Ltd. ranked the company in the fourth place as the most productive employees of "1999 Taiwan TOP 500." Increased the paid-in capital to NT$11.449 billion with retained earnings. Presented ASUS super thin NB...

  • Page 12
    ... with comprehensive system solution. ASUS W1 NB with built-in TV card and powerful multimedia software was market launched. The outstanding hair-like pattern design was awarded with multiple global awards. Presented the light-weight, big screen ASUS J101 phone. The industrial design team received...

  • Page 13
    ... Co., Ltd. for of stock exchange and strategic alliance; the company thus entered the industrial computer field. ASUS entered CES exhibition for the first time, introducing the concept of the "digital home." W5A NB was awarded with CES Innovative Design & Technology Award. The consolidated income of...

  • Page 14
    ... that led consumers entering new mobile phone era. ASUS was awarded 39 citations in the 15th Taiwanese Excellence Awards for its excellent quality and innovation; that was second to none. ASUS was recognized as an innovative technology company by Mercedes-Benz which co-branded the ASUS P526 "C-Class...

  • Page 15
    ... PC has overturned the world's thinking about mobile communication, and has successfully led the minicomputer market. Eee PC is named best seller of 3C products this year by numerous international media. ASUS market-launched the state-of-the-art Eee PC S101 this month, targeting at global business...

  • Page 16
    ...professional energy-saving for the second time since the initial recognition as the gold standard for green products manufacturer by CNN and TIME Magazine. ASUS introduced the brand new ASUS UL Series, demonstrating Turbo 33 duo-core effect, 12-hour long-lasting power, and a super-thin notebook that...

  • Page 17
    ... mobile video and audio theater. ASUS was awarded with international industrial design prizes again - the chocolate keyboard was awarded with the gold medal of iF design in Germany. ASUS Eee PCâ„¢ seashell, excellent superlight US series and UX30 notebook, Eee Keyboard PC, fashionable CG 5290, super...

  • Page 18
    ... Hybrid Engine (SHE) with super energy-saving techniques has been appraised by the Environmental Protection Agency (EPA). ASUS Eee Pad Transformer won the 2011 Taipei Computex Best Choice Award in category of the Best Choice of the Year, Best Design Award and the Best Choice in "Computer and Systems...

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

  • Page 20
    ... and e-readers, mobile computing devices, display, and wireless portable products. Eight ASUS products won the iF Design, again demonstrating the international recognition for ASUS's design capability. MWC listed the TabletPC product in its Global Mobile Awards 2013 for the first time and ASUS Nexus...

  • Page 21
    ...in Taiwan, a prestigious new flagship transformer mobile phone for the high-end smart mobile telecommunication market. ASUS ROG launched the first mini-ITX based gaming computer mother board - MAXIMUS VI Impact. Unlimited by PCB size, ASUS builds the Impact Power with 8+2 digital power supply design...

  • Page 22
    ... Desktop PC; PA Professional Display; VivoMouse, and ASUS ROG MAXIMUS VI FORMULA Motherboard. The Telecommunication Category of products includes PadFone mini. The Multimedia Audio/Video Category included the ASUS S1 portable mobile power LED projector. The list of 2014 Red Dot Design Awards showed...

  • Page 23
    ...JDP). Awarded products included 7 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 were further honored with inclusion in the annual Good Design Best 100 list. ZenFone...

  • Page 24
    ...Both laptop and motherboard products received Channel Model Brand Awards. ASUS released the world's fastest and most complete SuperSpeed+ USB 3.1 motherboard and expansion card. U.S. Forbes Magazine announced the 2014 World's Most Admired Company List and ASUS was ranked 6th in the computer industry...

  • Page 25
    ... than its 2015 ranking. ASUS introduces the 970 PRO GAMING/AURA, the world's first 970 AMD gaming board with official NVIDIA® certification. ASUS introduces the world's first USB Type-C™ powered portable display, MB169C+. ASUS wins 13 iF Product Design awards, setting a new company record for...

  • Page 26
    ... & Technological R&D Center Advanced EM & Wireless Communication R&D Center Management Headquarters Open Platform Business Group Systems Business Group Corporate Marketing Div. Customer Service Care Headquarters Human Resources Div. Firmware R&D Center ASUS Design Center Power R&D Center...

  • Page 27
    ... of system related product lines. Open Platform Business Group Responsible for managing the R&D and operation of component related product lines. R&D Center, Mechanical & Technological R&D Center, ASUS Design Center, Firmware R&D Center, Advanced EM & Wireless Communication R&D Center., ASUS Mobile...

  • Page 28
    ... of Computer Science, National Note 5 None None None Director R.O.C. Samson Hu 2014.06 3 2012.06 0 Chiao Tung University 0 Engineer of ASUS (USA) 0 Junior V.P. of Acer EMBA of National Taiwan University Note 6 Note 7 None None None None None None Director R.O.C. Joe Hsieh 2015.06...

  • Page 29
    ...companies: Hua-Cheng Venture Capital Corp., Hua-Min Investment Co., Ltd., ASUSTOR INC., ASUSTEK HOLDINGS LIMITED, ASUS INTERNATIONAL LIMITED, ASUS HOLLAND B.V., DEEP DELIGHT LIMITED, CHANNEL PILOT LIMITEDǵUNIMAX HOLDINGS LIMITED, NEXT SYSTEM LIMITED and ASUS DIGITAL INTERNATIONAL PTE LTD. Director...

  • Page 30
    ... 11, 2015 Jan 29, 2015 Nov 11, 2015 Jan 29, 2015 Nov 11, 2015 3 3 3 3 3 3 3 3 3 3 3 Director Jerry Shen Director Eric Chen Director S.Y. Hsu Director Samson Hu 26 Director Joe Hsieh Crime and Punishment of Insider Trading-Analysis of Judicial Example Corporate Social Responsibility and...

  • Page 31
    ... commerce, law, finance, accounting and consulting service to the Company or related party. Including but not limited to Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or Traded Over the Counter and...

  • Page 32
    ...% Name Other Position Managers who are Spouses or Within Two Degrees of Kinship Relation Spouse & Shareholding Minor by Nominee Shareholding Arrangement Shares % Shares % Chief Branding Officer 1,423,093 0.19 0 0 0 0 R.O.C. Jonney Shih Apr 30, 1994 Jonathan 2nd Tsang consanguinity Jonney Shih...

  • Page 33
    ... Capital Corp., Hua-Min Investment Co., Ltd., ASUSTOR INC., ASUSTEK HOLDINGS LIMITED, ASUS INTERNATIONAL LIMITED, ASUS HOLLAND B.V., DEEP DELIGHT LIMITED, CHANNEL PILOT LIMITEDǵUNIMAX HOLDINGS LIMITED, NEXT SYSTEM LIMITED and ASUS DIGITAL INTERNATIONAL PTE LTD. Director of the following companies...

  • Page 34
    ... to Directors (B)(Note 2) Salary, Bonuses, and Allowances (E) Severance Pay (F) (Note 1) Ratio of Total Compensation Exercisable New Restricted (A+B+C+D+E Employee Employee +F+G) to Net Stock Options Shares (I) Income (%) (H) The company The company Companies in the financial statements The...

  • Page 35
    ... (B) Base 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...

  • Page 36
    ... statements Stock amount Cash amount Stock amount Compensation paid to the President and Vice President from an Invested Company Companies Other Than The in the the company financial statements Company's Subsidiary Chief Branding Officer Jonney Shih President Jonathan Tsang Jerry Shen...

  • Page 37
    4. Names of managers receiving remuneration to employees, and status of allocation thereof Stock Amount Total Cash Amount (estimated amount) Ratio of Total Amount to Net Income (%) Title Name Chief Branding Officer Jonney Shih President Jonathan Tsang Chief Executive Officer Jerry Shen ...

  • Page 38
    ...Company's board of directors operates in accordance with the Company's "Parliamentary Rules for Directors' Meeting" and related laws. The executive financial officers and chief auditors will also attend a directors' meeting and produce relevant reports to directors for reference. Meanwhile, in order...

  • Page 39
    ..., and attend the directors' meeting to report the audit. 2. Supervisors may communicate with the CPA if 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...

  • Page 40
    ... those shares? (3) Does the company establish and execute the risk management and firewall system within its conglomerate structure? V 36 (4) Does the company establish internal rules against insiders trading with undisclosed information? V (2) The Company is used to maintaining fair relationship...

  • Page 41
    ...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 V performance appraisal once per six months based on each director's participation in...

  • Page 42
    ... also signs contract with 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...

  • Page 43
    ... of the company. iv. The proportion of bonus to directors and senior managers in short-term performance and the payout time for some changing salary and remuneration should be determined with consideration of industry characteristics and the business nature. 2. The Members of ASUS Compensation...

  • Page 44
    ... total stock issued directly or indirectly; or on the top-five shareholdings list of the Company; (6) Not a Director (executive), Supervisor, management, or a shareholder with over 5% shareholdings of a company or organization that is in business with the Company; (7) Not an owner, partner, Director...

  • Page 45
    ... July 20, 2015 The third time of the second edition Jan 27, 2016 The fourth time of the second edition Operation Approved the Company's motion for allocation of year-end bonuses to managers in 2014. Approved the motion for allocation of remuneration to directors/supervisors and employee bonuses from...

  • Page 46
    ...-line managers authorized by the board to be in charge of proposing the corporate social responsibility policies and reporting to the board? 42 (4) Does the company declare a reasonable salary remuneration policy, and integrate the employee performance appraisal system with its corporate social...

  • Page 47
    ... information that can be looked 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...

  • Page 48
    ... 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 49
    ... 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 principles based on "the Corporate...

  • Page 50
    ...be in line with the international own-brand manufacturers' requirements toward corporate social responsibility, ASUS also integrates the principal business lines with its sustainable policies to fulfill the management philosophy reflecting "becoming the world-class green technology leading group and...

  • Page 51
    ... note series 2015 comply with the Energy Star standards, and the average energy consumption performance is better than the Energy Star Standards by about 50%. (2) ASUS was awarded the HSPM certificate (Hazardous Substance Process Management) by IECQ in 2012 and became the first computer company to...

  • Page 52
    ... Choice Award and Eee Box EB1033 awarded Green ICT Award in 2012. (6) Since ASUS received the first notebook EPEAT gold medal in Taiwan and the first notebook EU Flower mark in the world in 2008, ASUS has continued and worked hard to boost the green environmental protection products to demonstrate...

  • Page 53
    ...among the international own-brand manufacturers participating the competition with respect to computer and peripheral devices. For more ASUS products under the environmental protection mark, please view: http://csr.asus.com/chinese/index.aspx#74 2. Corporate social responsibility SERASUS Considering...

  • Page 54
    ... or handicap, but will care for and protect their work and living conditions, and provide employees with well-founded training and chance for self-development. According to the Universal Declaration of Human Rights of UN, ASUS discloses the Company's statement of human rights policy as following...

  • Page 55
    ...2012; received the service industry excellence award in 2013. Received the service industry silver medal for "Taiwan Top 50 CSR Award" in 2014; received the service industry bronze medal for "Taiwan CSR Award" in 2015 (21) Attended the "CSR Taiwan Corporate Social Responsibility" organized by Global...

  • Page 56
    ... internally to international organizations attended by the Company externally to integrate external resources to control and manage the risk jointly. In order to ensure that suppliers and contractors meet ASUS management standards, ASUS will perform the Quality Business Review (QBR) on key and new...

  • Page 57
    ...in addition to the other fair communication channels between employees, work teams and high-rank management internally and externally, such as ASUS intranet EIP, DigiTrend magazine, corner promotional materials, 24-hour emergency service hotline No. 2119 for ASUS employees, sustainability and humane...

  • Page 58
    ... the refurbished computers may also apply the software programs and services provided by ASUS Foundation, e.g. set-up of social community (set-up of Facebook fan page, how to post and share articles), control over files (Google cloud hardware, and production of cloud questionnaire), paperwork...

  • Page 59
    ... product and service design, and upgrade the easiness and relationship between ASUS products and users. Meanwhile, in order to enable the recipients to exchange with each other effectively, the Company sets up a Facebook fan page to share the benefits of refurbished computers. ASUS digital learning...

  • Page 60
    ... donated computers to such disadvantaged groups as non-profit-making organizations in various villages and townships throughout Taiwan and helped 23 countries. By donating hardware devices and providing the global digital volunteer workers' service to promote digital learning, the Company helped the...

  • Page 61
    ... half of 2015. The theme of the video will be set depending on current events each year, as the Company hopes to spread positive and good faith strength through the video. a. Touching 99 Video Selection "Heart Happiness Event" of 6th term Social cases have been frequently reported recently, catching...

  • Page 62
    ... for the videos. b. Mobile phone video creation camp ASUS has worked with Taiwan Public Television Service Online to plan the mobile phone video creation camp. Via the fine-quality media, ASUS ZenFone, ASUS worked with the excellent directors from Taiwan Public Television Service Online to execute...

  • Page 63
    ..., government, academic sector and media. (7) Community service and cultural & educational activities ASUS and ASUS Foundation continue to sponsor art and cultural activities to care the locals, have the whole world in view and fulfill corporate social responsibility, in hopes of enhancing investment...

  • Page 64
    ... family dates and public welfare events to bring energy and passion to every guest of the events. For the latest news and promotional activities about ASUS social and environmental responsibility, please view the Company's website at: http://csr.asus.com/chinese/ ASUS Corporate Sustainability Report...

  • Page 65
    ... ASUS has developed the "Employee Moral Conduct Principles" which clearly states that all employees, including the directors, supervisors, and managers shall strictly abide by the performance of relevant integral policies to prevent and eliminate any business conducts of deception. The Annual Report...

  • Page 66
    ... Management Principles" The company also suggests the complaint reporting mailbox on the quality card given to employees and internal Company EIP website, providing employees to report the improper behavior. In addition to establishing proper accounting system There have been no and internal control...

  • Page 67
    ... cases? 63 (3) Does the company provide proper whistleblower protection? V 1. Reporting channel : [email protected] / Employee There have been no differences mailbox Punishment and complaint filing system: Handled in accordance with the "Work Rules" of the company. 2. Apart from the reporting...

  • Page 68
    ... long-term cooperation for co-prosperity with various business partners. Please attain critical information from the investor relationship website and Corporate Social Responsibility website. 4. Pursuit of Study for Directors: Please refer to the disclosure matters on this Annual Report. 5. Director...

  • Page 69
    ... of the Board of Directors: Date Jan 29, 2015 Mar 19, 2015 Major resolutions Adopted 2015 contribution proposition from the Company to "ASUS Culture Foundation" 1. Adopted the Company's business report 2014 2. Adopted the Company's final account and book, and consolidated financial statements 2014...

  • Page 70
    ... Board of Directors: None (XIIII) Resignation or Dismissal of the Company's Key Individuals, Including the Chairman, CEO, and Heads of Accounting, Finance, Internal Audit and R&D: Title Financial officer Accounting officer Name David Chang David Chang Date of appointment July 7, 2006 July 24, 2015...

  • Page 71
    ... for the said change must be disclosed: None. V. CPA's information: None. 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, title, and the term with the independent...

  • Page 72
    ... Officer Director & Corporate V.P. Supervisor Supervisor Supervisor Corporate V.P. Corporate V.P. Corporate V.P. Chief Financial Officer Comptroller Name Holding Increase (Decrease) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pledged Holding Increase (Decrease) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 As of April 10, 2016...

  • Page 73
    ... Chartered managed Infinite Growth Companies Government of Singapore Investment Commissioned to Citibank (Taiwan) Labor Insurance Funds New Labor Pension Fund Standard Chartered managed Van Gardner emerging market stock index fund account Public Service Pension Fund % Shares % Shares % 46...

  • Page 74
    ... 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. Ownership by the Company Shares 19,000,000...

  • Page 75
    ...) 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 Shares % 11,422,000...

  • Page 76
    ... 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 77
    ... L ASUS CLOUD (TIANJIN) INFORMATION TECHNOLOGY CO., LTD. ASKEY INTERNATIONAL CORP. DYNALINK INTERNATIONAL CORP. MAGIC INTERNATIONAL CO., LTD. ASKEY (VIETNAM) COMPANY LIMITED WISE ACCESS (HK) LIMITED Ownership by the Company Shares % Direct or Indirect Ownership by Directors, Supervisors, Managers...

  • Page 78
    ... CORP. UPI SEMICONDUCTOR CORPORATION (HK) LTD. UPI SOLUTIONS CO., LTD UPI-SEMICONDUCTOR CORPORATION (SHENZHEN) LTD. NEXT SYSTEM LIMITED POTIX CORPORATION (CAYMAN) ! ! Ownership by the Company Shares ! % Direct or Indirect Ownership by Directors, Supervisors, Managers Shares % 438,840 94...

  • Page 79
    ... Capital and shares (1) History of capitalization 1. Type of shares Base date: As of April 10, 2016 / 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 80
    ...value (NT$) Shares Amount (NT$ thousands) Paid-in Capital Shares Amount (NT$ thousands) Source of capital Remarks Capital Increased...,000 2,998,184 29,981,838 Stock shares $736,629,610 É¡ 2006.04 ... date and approval no. of capitalization by the SEC, Ministry of ...2013.11.21 Jin-So-Son-Tzi ...

  • Page 81
    ...,000 Over 1,000,001 Total 2. Preferred Shares: None (4) List of Major Shareholders Base date: As of April 10, 2016 Shareholding Shareholder's Name National Westminster Bank First State Asia Pacific Leaders Fund Chase Bank managed Saudi Arabia Central Bank investment account Shareholding 46,193,000...

  • Page 82
    ... Companies Governemnt of Singapore Investment Commissioned to Citibank (Taiwan) Labor Insurance Funds New Labor Pension Fund Standard Chartered managed Van Gardner emerging market stock index fund account Public Service Pension Fund (5) Market Price, Net Worth, Earnings, and Dividends per Share...

  • Page 83
    ... March 31, 2016 were included in the report printed on April 11, 2016 for data accuracy. (6) Execution of Dividend Policy 1. Dividend Policy The Company's dividend policy is set by the board of directors subject to the Company's overview of business, need for funding, capital expenditure and budget...

  • Page 84
    ...allocating remuneration to employees from stock, the basis for estimation shall be based on the closing price on the day prior to resolution of the board of directors and by taking into consideration the ex-right and ex-dividend effect. Notwithstanding, in the case of the accounting treatment of the...

  • Page 85
    ...(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 86
    ... 2015 Market price per unit (US$) As of April 11, 2016 Lowest Average Highest Lowest Average Item Date Date and remainder of initial issuance A Amounts GDR US$ 56.14 US$ 38.92 US$ 47.36 US$ 44.88 US$ 38.85 US$ 41.80 Total marketable security shares recognized Price / Per Shares share Price Issue...

  • Page 87
    ... and new stock shares issued in recent years and up to the date of 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...

  • Page 88
    ... 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 equity issuance or marketable security subscription or...

  • Page 89
    ... 4,368 awards worldwide from media and professional rating institutes. ASUS generated sales revenue of NTD436.5 billion in 2015. 1. Company product lines: a. Desktops / Servers / Motherboards b. Graphics cards c. Soundcards d. Laptops e. Tablets f. Smartphones g. LED displays h. Networking devices...

  • Page 90
    ... parts (motherboard, VGA, etc.), and computer peripherals (computer case, mouse, keyboard, etc.). Down-stream industry includes table-top computers and notebook computers. 3. Product development trends: Cloud computing provides data access and/or application services by terminal installation...

  • Page 91
    ..., and marketing of advanced motherboards, graphics cards, laptops, tablets, servers and smartphones; and to develop 4C (computers, communications, consumer electronics, and automobile electronics) integrated products. For ASUS, the R&D Division and the R&D Center have a positive correlation working...

  • Page 92
    ... laptops e. High-speed router /network switch / Firewall / VPN f. New-generation advanced server g. Professional LED display h. All-in-One (AiO) desktop, Transformer AiO i. Transformer Pad j. Touch Windows laptop & tablet k. Wearable electronic products 2. R&D planned in 2016: a. Digital control...

  • Page 93
    ... key. As the leader of brand technology, ASUS believes in the power of the open platform. We must embrace the ubiquitous era of cloud computing with an open mind, building a versatile solution for the next generation of cloud computing. II. Market analysis and the conditions of sales and production...

  • Page 94
    ...ASUS laptop computers to take over 10~11% of the global market share. (3) Short-term development of IT industry: With the arrival of the cloud computing era, ASUS plans to introduce a series of cloud computing-related services and products with a specific solution designed to provide cloud computing...

  • Page 95
    ... in power saving and environmental protection. ASUS expects to have a more flexible and efficient organizational operation, with two business groups being formed including: System Business Group and Open Platform Business Group in order to aggregate recourses and be more responsive to market changes...

  • Page 96
    ...drives, laptops, servers, desktop computers, smartphones, tablets and wireless broadband mobile devices. The excellent R&D talents of ASUS are recognized in the industry, with many patents awarded and many new products constantly in development. b. Many of the department heads and management of ASUS...

  • Page 97
    ... years. ASUS has planned and acquired good brand and channel positioning. c. In terms of multiple product lines, the Company has won a leading role in the industry, while its motherboard sales account for the top position in the global market. In terms of laptop computers, the company has achieved...

  • Page 98
    ... and supplies. Note 3: Causes of increase and decrease - for business operation 2. Major Customers of the last two fiscal years: The sales income of one customer from the consolidated company between 2015 and 2014 did not show 10% of the consolidated net operating income. (V) Production/Sales...

  • Page 99
    ... system forcefully to save energy and reduce green house gas emission. 2. ASUS will continue to invest in green design, green procurement, green production, and green marketing for fulfilling corporate social responsibility to the earth. 3. The Company will plan the capital expenditure related...

  • Page 100
    ... without the support of the employer; therefore, a harmonious employer-employee relation is what ASUS after. ASUS has treated employees with an honest and open attitude; also, has working regulations and rules defined in the company's Work Code for the reference of employees. In terms of salary...

  • Page 101
    ... and exercise management effectiveness. Plan core value training courses to help staff generate ASUS DNA and upgrade staff's work skills and performance. Individual received 5.63 hours of training in average in 2015 with the following courses: Course Type Classroom E-learning Total Course...

  • Page 102
    ... needed for performing the task. ASUS grants employees financial support for the external training courses related to their job performance. ASUS had 389 external training courses arranged in 2015 with NT$2,402,525 granted as follows: Item Professional Management Language Others Total Course 222...

  • Page 103
    ... developed to help employees follow the Company's integral standards and assist the stakeholders of the company to understand the ethics standards executed by the company staff. There is additional email, [email protected] used as channel for employee complaints. The HR Office and Legal Affairs Center...

  • Page 104
    ... Enterprises" of 24th term in 2015, whose achievement in employees' safety, physical and mental care for employees and environmental protection has been recognized. 6. Fire Management and Emergency Response Training The Company develops fire protection proposal according to the Fire Service Act. In...

  • Page 105
    ... Total Liabilities After allocation Share capital Capital surplus Before Retained allocation earnings After allocation Other Equity Treasury shares Non-controlling interest Before Total allocation Equity After allocation Financial information in the past five years (Note 2) 2011 2014 2012 2013...

  • Page 106
    ... Profit attributable to Non-controlling interests Total comprehensive income attributable to shareholders of the parent Total comprehensive income attributable to Non-controlling interests Earnings per share (non-retroactive) Financial information in the past five years (Note 1) 2011 2014 2012 2013...

  • Page 107
    ... 2012 2013 2014 2015 Before 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 value...

  • Page 108
    ... net income attributable to shareholders of the parent Earnings per share (non-retroactive) 2011 384,112,294 52,354,786 18,229,501 3,782,296 1,877,566 20,134,231 16,847,398 16,847,398 N/A Financial information in the past five years (Note 1) 2012 2013 2014 2015 16,578,159 21.99 Note 1: The above...

  • Page 109
    ... Current Liabilities Share capital Capital surplus Retained earnings Other Equity Treasury shares Before Total Equity allocation After allocation Before allocation After allocation Financial information in the past five years (Note 2) 2011 2012 2013 2014 (Adjustment) 2015 As of April 11, 2016 130...

  • Page 110
    ... per share (non-retroactive) N/A 22,463,572 (402,538) 22,061,034 29.84 21,449,895 4,376,626 25,826,521 28.66 19,470,409 23,455,604 42,926,013 26.21 17,097,470 (1,027,712) 16,069,758 23.02 Financial information in the past five years (Note 1) 2011 2012 2013 2014...

  • Page 111
    ...715,457 122 73,526 1,354,470 114,948,250 104,033,226 N/A Financial information in the past five years (Note) 2012 2013 2014 2015 Long-term Liabilities Other Liabilities Total Liabilities Capital Stock Additional paid-in capital Before allocation Retained earnings After allocation Unrealized gain on...

  • Page 112
    ... of Changes In Accounting Principles Net income Earnings per share (non-retroactive) 2011 317,669,775 20,126,952 10,723,456 9,761,549 689,540 19,795,465 16,578,159 16,578,159 21.99 N/A Financial information in the past five years (Note) 2012 2013 2014 2015 Note: The above financial information for...

  • Page 113
    ...Average days in sales Property, plant and equipment turnover (times) Total assets turnover (times) Ratio of return on total assets (%) Ratio of return on equity (%) Ratio of profit before tax Profitability to Paid-in capital (%) (Note 7) Profit ratio (%) Earnings per share ($) (non-retroactive) Cash...

  • Page 114
    ...up to the date of the report printed on April 11, 2016. Note 3: Equations: 1. Financial structure (1) Ratio of liabilities to assets = Total liabilities / Total assets (2) Ratio of long-term capital to property, plant and equipment = (Total equity + non-current liabilities) / Net property, plant and...

  • Page 115
    ... for consideration for the calculation of earnings per share: 1. It is based on the weighted average common stock shares instead of the outstanding stock shares at yearend. 2. For capitalization with cash or Treasury stock trade, the stock circulation must be included for consideration to calculate...

  • Page 116
    ...84 8.10 15.14 242.17 267.47 4.39 21.99 17.88 157.00 7.80 3.08 1.01 N/A Financial analysis in the past five years 2012 2013 2014 2015 Note 1: The financial information is audited by CPA. Note 2: Equations: 1. Financial structure (1) Ratio of liabilities to assets = Total liability/Total assets 112

  • Page 117
    ... of goods sold/ Average accounts payable (including accounts payable and notes payable derived from business operation) (5) Average days in sales = 365 / Inventory turnover (6) Fixed assets turnover = Net sales / Net fixed assets (7) Total assets turnover = Net sales / Total assets 4. Profitability...

  • Page 118
    ... of capital investment annually. Increase of inventory is counted only when ending inventory exceeds beginning inventory. If the ending inventory is decreased, it is booked as zero value. Cash dividend includes the amount for common stock and preferred stock. Gross fixed assets meant for the total...

  • Page 119
    ... days in sales Property, plant and equipment turnover (times) Total assets turnover (times) Ratio of return on total assets (%) Ratio of return on equity (%) Ratio of profit before Profitability tax to Paid-in capital (%) (Note 7) Profit ratio (%) Earnings per share ($) (non-retroactive)) Cash...

  • Page 120
    ... on equity: The decrease in income and increase in average total equity in current period caused the decrease in ROE in current period. Cash flow ratio: The cash outflow from operating activities this year was intended to pay the payable accounts for the purchased materials, causing the decrease...

  • Page 121
    ... unconsolidated report - adopting ROC GAAP Year (Note 1) Item (Note 2) Ratio of liabilities to Financial assets structure Ratio of long-term (ʘ) capital to fixed assets Current ratio (%) Solvency (ʘ) Quick ratio (%) Times interest earned Account receivable turnover (times) Days sales in accounts...

  • Page 122
    ... in the most recent years ASUSTek Computer Inc. SUPERVISORS' REPORT The Board of Director has prepared the Company's 2015 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 123
    ... Total liabilities Share capital Capital surplus Retained earnings Other equity Total equity attributable to shareholders of the parent Total equity Analysis of financial ratio change: 1. Non-current liabilities: Caused by increase in deferred income tax liabilities and long-term loan. 2015...

  • Page 124
    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 125
    ...Business Performance Unit: NT$ thousands Item Operating revenues Operating costs Gross profit Operating expenses Operating profit Non-operating income and expenses Other income Other gains (losses) Finance costs Share of profit of associates and joint ventures accounted for under equity method Total...

  • Page 126
    ...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: Caused by decrease in unrealized evaluation gains on available-for-sale financial assets stated...

  • Page 127
    ... to profit or loss Financial statements translation differences of foreign operations Unrealized gain on valuation of available-for-sale financial assets Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for under equity method Income tax relating to...

  • Page 128
    ....27)% (33.00)% (289.57)% 2014 Financial ratio change Cash reinvestment ratio (12.00)% Analysis of financial ratio change: 1. Decrease of cash flow ratio this year: The cash outflow from operating activities this year was intended to pay the payable accounts for the purchased materials, causing the...

  • Page 129
    ... performance Focus on brand marketing and 6,499,941 business development - - Note: Own brand business included: ASUS GLOBAL PTE. LTD., ASUS TECHNOLOGY PTE. LIMITED, ASUS TECHNOLOGY INCORPORATION, ASUSTEK COMPUTER (SHANGHAI) CO. LTD., ASUS COMPUTER INTERNATIONAL, ASUSTEK Computer (Chongqing...

  • Page 130
    ... information products developed. 1. Products development planned in 2016: (1) Digital control wireless transmission technology CPU MB (2) Advanced 3D image display and wireless TV transmission graphic card (3) Smartphone (4) Ultra Mobile PC (5) High-speed router / exchanger / firewall / VPN (6) New...

  • Page 131
    ...series, LED of NEXUS 7, lithium battery product, image thumbnail, smart lock for Android 5.0, Zhuyin input function, multi-window for dual apps, User interface, DVD player restriction technology, Wireless multiplex data transmission system, audio signal encoding and decoding system against the Group...

  • Page 132
    ..., but the Company and its subsidiaries cannot presently determine the outcome of the lawsuit. The Group however expects that the above cases will have no material effect on its operating and financial position. 2. The related party's major legal issues, non-legal issues, or administrative lawsuits...

  • Page 133
    ... 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 134
    ... Organization Chart (2015.12.31) ASUSTEK COMPUTER INC. 87.57% HUA-MIN ASUS DIGITAL INTERNATIONAL INTERNATIONAL VENTURE CAPITAL 100% HUA-CHENG INTERNATIONAL 100% SHINEWAVE 100% ASUS HOLLAND TECHNOLOGY TECHNOLOGY 100% ASUST EK HOLDINGS LIMIT ED TECHNOLOGY CO., LTD. 100% ASMEDIA AGAiT UNIT ED...

  • Page 135
    ...(1) Asustek Computer Inc. 100% ASUS GLOBAL INTERNATIONAL 100% ASUS LIMIT ED 37.50% UPI SEMICONDUCTOR PT E. LT D. CORP. 131 100% DEEP DELIGHT LIMIT ED LIMITED P ILOT CHANNEL 100% 100% UNIMAX HOLDINGS LIMIT ED 100% UBIQ SEMICONDUCTOR 100% UPI CORP. (SHENZHEN) ! Corp. Ltd. 1% ASUS SERVICE...

  • Page 136
    ASUS Organization Chart (2015.12.31) - (2) ASUSTEK COMPUTER INC. 100% ASKEY COMPUTER TECHNOLOGY 47% AAEON INC. CORP. 100% MAGIC INTERNATIONAL INTERNATIONAL 100% ASKEY ELECTRONICS, DEVELOPMENT INCORPORATED 100% TECHNOLOGY 100% AAEON INVESTMENT 60.87% ONYX HEALTHCARE DYNALINK CO., LT D. CORP...

  • Page 137
    ...100% 100% ASUS SERVICE 99.59% ASUS CZECH SERVICE 80% ASUS MIDDLE ASUS LT D ASUS ASUS HOLDINGS ASUS SERVICE ASUS PERU JAP AN MEXICO, SA MEXICO, S. A. INDONESIA AUSTRALIA P TY LIMITED INCORPORATION DE CV DE C. V. PT E. LT D. S. R. O. EAST FZCO 1% 100% ASUSTEK COMPUTER 100% ASUST...

  • Page 138
    ...Taiwan China Taiwan Samoa Taiwan Samoa CAPITAL MAJOR BUSINESS / PRODUCTION ITEMS NAME OF CORPORATION ASUS COMPUTER INTERNATIONAL ASUS TECHNOLOGY INCORPORATION ASUS HOLLAND B. V. ASUSTEK HOLDINGS LIMITED HUA-CHENG VENTURE CAPITAL CORP. HUA-MIN INVESTMENT CO., LTD. ASUS GLOBAL PTE. LTD. ASUS DIGITAL...

  • Page 139
    NAME OF CORPORATION CAPITAL MAJOR BUSINESS / PRODUCTION ITEMS MAGICOM INTERNATIONAL CORP. Jan 10, 2005 March 12, 2004 September 2, 2004 Mauritius April 11, 2013 July 19, 2011 July 1, 2003 August 30, 2001 September 27, 2012 June 6, 2009 Samoa Hong Kong China China Taiwan Taiwan Germany France ...

  • Page 140
    ...) LTD. ASUS INTERNATIONAL LTD. DEEP DELIGHT LTD. CHANNEL PILOT LIMITED UNIMAX HOLDINGS LIMITED 431,884 Selling communication products 328 Investing in computer peripherals business 369,956 Computer peripherals business investment Manufacturing and selling computer peripheral spare 229,775 parts...

  • Page 141
    NAME OF CORPORATION April 17, 2007 April 26, 2005 June 19. 1991 February 21, 2006 Netherlands Singapore Germany Taiwan 213,248 DATE OF ESTABLISHMENT ADDRESS CAPITAL MAJOR BUSINESS / PRODUCTION ITEMS UNIMAX ELECTRONICS INC. ASUS TECHNOLOGY PTE. LIMITED ASUS COMPUTER GMBH ASUS COMPUTER BENELUX B. ...

  • Page 142
    ... 2013 Portugal Switzerland Sweden China China China China China Hungary ASUS MEXICO, S. A. DE C. V. ASUS COMPUTER COLOMBIA S. A. S ASUS HUNGARY SERVICES LIMITED LIABILITY COMPANY ASUS PORTUGAL, SOCIEDADE UNIPESSOAL LDA. ASUS SWITZERLAND GMBH ASUS NORDIC AB ASUSTEK COMPUTER (SHANGHAI) CO., LTD. ASUS...

  • Page 143
    ....23 ASUS TECHNOLOGY INC. ASKEY COMPUTER CORP ENERTRONIX, INC. AGAIT TECHNOLOGY CORPORATION HUA-CHENG VENTURE CAPITAL CORP. HUA-MIN INVESTMENT CO., LTD. ASUS CLOUD CORPORATION Chu, Chung-Yuan* Wu, Han-Chang* Alan Hsieh ASUSTEK COMPUTER INC.ȐRepresentative: Jerry ShenÈ' ASUSTEK COMPUTER INC...

  • Page 144
    ... COMPUTER INTERNATIONAL ASUS HOLLAND B.V. ASUS INTERNATIONAL LTD ASUSTEK HOLDINGS LIMITED ASUS GLOBAL PTE LTD. Steve Chang ASUSTEK COMPUTER INC.ȐRepresentative: Jonney ShihÈ' ASUSTEK COMPUTER INC.ȐRepresentative: Jonney ShihÈ' ASUSTEK COMPUTER INC.ȐRepresentative: Jonney ShihÈ' ASUSTEK COMPUTER...

  • Page 145
    NAME OF CORPORATION TITLE Director NAME OF PERPRESENTATIVE ASUS TECHNOLOGY PTE LTD. ȐRepresentative: Shih, Wen-HungÈ' ASUS TECHNOLOGY PTE LTD. ȐRepresentative: Wang, Hsiang-HueiÈ' SHAREHOLDING SHARES 100.00% É¡ 100.00% É¡ 100.00% É¡ 100.00% 100.00% 5,300 100.00% É¡ ASUSTEK COMPUTER (SHANGHAI)...

  • Page 146
    ...: Jerry Shen) ENERTRONIX HOLDINGS LTD (Representative: Weng, Hsiang-Chung*) SHAREHOLDING SHARES % 350,000 100.00% É¡ É¡ ASUS AUSTRALIA PTY LIMITED Director Director 33,500,000 100.00% É¡ É¡ ASUS INDIA PRIVATE LIMITED Director ASUS ISRAEL (TECHNOLOGY) Director LTD ASUS SERVICE INDONESIA PTE...

  • Page 147
    ... CO., LTD. (RepresentativeǺJerry Shen) ASMEDIA TECHNOLOGY INC. (Representative: Lin CheWei) ASUS CLOUD CORPORATION. ȐRepresentative: Wu, Han-ChangÈ' ASUS CLOUD CORPORATION ȐRepresentative: Sung, Lai-Chi*È' ASUS CLOUD CORPORATION. ȐRepresentative: Wu, Han-ChangÈ' ASUS CLOUD SINGAPORE PTE. LTD...

  • Page 148
    ... Independent Director Independent Director NAME OF PERPRESENTATIVE AAEON TECHNOLOGY INC. (Representative: Chinlong Hsu) AAEON TECHNOLOGY INC. (Representative: Bob Wang) Lee, Tsu-Der Lee, Chih-Kung James Chiang Tai, Yi-Hui SHAREHOLDING SHARES AAEON TECHNOLOGY SINGAPORE PTE. LTD. AAEON TECHNOLOGY...

  • Page 149
    NAME OF CORPORATION SILIGENCE SAS MAGICOM INTERNATIONAL CORP. LEADING PROFIT CO., LTD. UNI LEADER INTERNATIONAL LTD. OPENBASE LIMITED ASKEY COMMUNICATION GMBH ASKEY TECHNOLOGY (SHANGHAI) LTD. TITLE Director Director Director Director Director Director Chairman NAME OF PERPRESENTATIVE WISE ACCESS (...

  • Page 150
    ... 31,529,077 ASUS TECHNOLOGY INC. ASUS HOLLAND B. V. ASUSTEK HOLDINGS LIMITED HUA-CHENG VENTURE CAPITAL CORP. 680,000 919,100 27,245 107,250 9,848 201,000 1,145,000 HUA-MIN INVESTMENT CO., LTD. ASUS GLOBAL PTE. LTD. 146 ASUS DIGITAL NTERNATIONAL PTE. LTD. SHINEWAVE INTERNATIONAL INC. EMES...

  • Page 151
    ...,995 MAGIC INTERNATIONAL CO., LTD. ASKEY (VIETNAM) COMPANY LIMITED WISE ACCESS (HK) LIMITED Note 1 Note 1 Note 1 MAGICOM INTERNATIONAL CORP. OPENBASE LIMITED LEADING PROFIT CO., LTD. 147 UNI LEADER INTERNATIONAL LTD. ASKEY COMMUNICATION GMBH SILIGENCE SAS ASKEY TECHNOLOGY (SHANGHAI) LTD...

  • Page 152
    NAME OF CORPORATION CAPITAL TOTAL ASSETS TOTAL LIABILITIES NET WORTH (465) 9,325 (515) 2,510,308 227,737 40,257 100,990 154,830 12,712 309,410 317,279 42,950 416,...

  • Page 153
    ... SOLUTIONS CO., LTD. UPI SEMICONDUCTOR CORPORATION (SHENZHEN) LTD. ASUS CLOUD CORPORATION Note 1 (2.35) ASUS CLOUD SINGAPORE PTE. LTD. 149 ASUS CLOUD (LUXEMBOURG) S. A R. L ASUS CLOUD (TIANJIN) INFORMATION TECHNOLOGY CO., LTD. Note 1 (0.97) ENERTRONIX, INC. ENERTRONIX INTERNATIONAL LIMITED...

  • Page 154
    NAME OF CORPORATION 213,363 213,248 44,779,387 315,644 22,...278 CAPITAL TOTAL ASSETS TOTAL LIABILITIES NET WORTH NET OPERATING REVENUES OPERATING INCOME (LOSS) NET INCOME (LOSS) UNIMAX HOLDINGS LIMITED EARNING (LOSS) PER SHARE(NTD) - UNIMAX ELECTRONICS INC. 0.91 ASUS TECHNOLOGY PTE. LIMITED ...

  • Page 155
    ... LTDA. ASUS INDIA PRIVATE LIMITED 151 ASUS ISRAEL (TECHNOLOGY) LTD. ASUS PERU S. A. C. ASUS SERVICE INDONESIA PTE. LTD. ASUS HOLDINGS MEXICO, S. A. DE C. V. ASUS MEXICO, S. A. DE C. V. ASUS COMPUTER COLOMBIA S. A. S ASUS HUNGARY SERVICES LIMITED LIABILITY COMPANY ASUS PORTUGAL, SOCIEDADE...

  • Page 156
    NAME OF CORPORATION 11,283 1,174 265,883 65,650 3,011,464 9,477... 1,844 1,476 CAPITAL TOTAL ASSETS TOTAL LIABILITIES NET WORTH - NET OPERATING REVENUES OPERATING INCOME (LOSS) NET INCOME (LOSS) EARNING (LOSS) PER SHARE(NTD) ASUS SWITZERLAND GMBH ASUS NORDIC AB ASUSTEK COMPUTER (SHANGHAI) CO....

  • Page 157
    ...the internal control system (including the supervision and management over the subsidiaries) including the fulfillment of business performance and efficiency, the reliability of financial statements and the obedience of governing regulations, and the design and enforcement of internal control system...

  • Page 158
    ... of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years ended December 31, 2015 and 2014. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to...

  • Page 159
    .... In our opinion, based on our audits 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, 2015 and 2014, and the...

  • Page 160
    ... 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 Prepayments Other current assets Total current assets Non-current assets...

  • Page 161
    ... 31, 2015 AND 2014 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) DECEMBER 31, 2015 AMOUNT % % 2-929-536 494-8:2 2 . % DECEMBER 31, 2014 (ADJUSTED) AMOUNT % 4-992-:8: 253-444 2 . LIABILITIES AND EQUITY Current liabilities Short-term borrowings Financial liabilities at fair value through profit or...

  • Page 162
    ASUSTEK COMPUTER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA) FOR THE YEARS ENDED DECEMBER 31, 2015 2014 (ADJUSTED) AMOUNT % AMOUNT % 583-446-429 211...

  • Page 163
    ... COMPUTER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) Capital reserves Equity attributable to shareholders of the parent Retained earnings Common shares Others Legal reserve Total...

  • Page 164
    ...) Change in non-controlling interest Others Net cash provided by (used in) financing activities Effects due to changes in exchange rate Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 2014 (ADJUSTED...

  • Page 165
    ..., 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 of computer cases and molds and non...

  • Page 166
    .... For non-financial assets only, fair value is determined based on the highest and best use of the asset. Based on the Group's assessment, the adoption of the standard has no significant impact on its consolidated financial statements, and the Group disclosed additional information about fair value...

  • Page 167
    ...July 1, 2014 January 1, 2016 The Group is assessing the potential impact on the financial position and results of operations of the new standards, interpretations and amendments above. The related impact will be disclosed when the Group completes the evaluation. 4. SUMMARY OF SIGNIFICANT ACCOUNTING...

  • Page 168
    ... fair value. (D) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation. B. The critical accounting estimates and assumptions used in preparation of financial statements and the critical judgements in applying the Group...

  • Page 169
    ... selling ink-jet print heads and ink-jet digital image output technology Designing, developing and manufacturing high-speed analog circuit Designing, manufacturing, repairing and selling communication products and computer peripheral spare parts Investing in computer peripherals business 50.99 50...

  • Page 170
    ... ASKEY GROUP ASKEY GROUP ASKEY GROUP ASKEY GROUP ASKEY GROUP ASKEY GROUP Designing, manufacturing and selling medical computers Developing, designing and consulting about information system software Investing in high-speed analog circuit business Selling and servicing about communication products...

  • Page 171
    ... Manufacturing and selling communication products Selling and servicing 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 Manufacturing and selling industrial computers...

  • Page 172
    ...manufacturing and selling medical computers Designing and selling medical computers Designing and selling medical computers Designing and selling medical computers Designing, developing and selling integrated circuits Selling integrated circuits and investing in technical support consulting business...

  • Page 173
    ... circuits and investing in technical support consulting business Investing in e-commerce service Ownership (%) 2015/12/31 2014/12/31 100.00 100.00 Remark 100.00 - ASUSCLOUD ASUS CLOUD GROUP SINGAPORE PTE. LTD. (ASUSCLOUDSG) ASUSCLOUD ASUS CLOUD (TIANJIN) GROUP INFORMATION TECHNOLOGY CO., LTD...

  • Page 174
    ...PRIVATE LIMITED (ASIN) ASUS ISRAEL (TECHNOLOGY) LTD. (ACIL) ASUSTEK COMPUTER (CHONGQING) CO., LTD. (ACCQ) ASUS PERU S. A. C (ACPE) ASUS SERVICE INDONESIA PTE. LTD. (ASID) ASUS HOLDINGS MEXICO, S. A. DE C. V. (ACMH) ASUS MEXICO, S. A. DE C. V. (ACMX) Main business activities Marketing 3C products in...

  • Page 175
    ... consolidated financial statements are presented in "New Taiwan Dollars (NTD)", which is the Company's functional and the Group's presentation currency. A. Foreign currency transactions and balances (A)Foreign currency transactions are translated into the functional currency using the exchange rates...

  • Page 176
    ... 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 fair value through...

  • Page 177
    ... criteria are designated as at fair value through profit or loss on initial recognition: (A) Hybrid (combined) contracts; or (B) They eliminate or significantly reduce a measurement or recognition inconsistency; or (C) They are managed and their performance is evaluated on a fair value basis, in...

  • Page 178
    ... using trade date accounting. C. Financial assets at fair value through profit or loss are initially recognized at fair value. Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value...

  • Page 179
    ... payment status of borrowers in the group or national or local unfavorable economic conditions that correlate with defaults on the assets in the group; (G) Information about significant changes with an adverse effect that have taken place in the technology, market, economic or legal environment in...

  • Page 180
    ... in profit or loss on a straight-line basis over the lease term. (13) Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials and other direct...

  • Page 181
    ...In the case that an associate issues new shares or buys treasury stocks (including the Group does not acquire or dispose 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...

  • Page 182
    ... in a business combination accounted for by applying the acquisition method. B. 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...

  • Page 183
    ... of the borrowings using the effective interest method. (21) Notes and trade payables Notes and trade payables are obligations to pay for goods or services that have been acquired from supplies in the ordinary course of business. They are recognized initially at fair value and subsequently measured...

  • Page 184
    ...are subsequently remeasured at their fair value. Any changes in the fair value are recognized in profit or loss. B. The Group designates certain derivatives as: Hedges of the variability in cash flow associated with a recognized asset or liability or a highly probable forecast transaction (cash flow...

  • Page 185
    ... have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in such corporate bonds, the Group uses interest rates of government bonds (at the end of the financial reporting period) instead. b. Remeasurement arising on defined benefit plans are...

  • Page 186
    ...non-market vesting conditions at the end of the financial reporting period. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest. B. Restricted stocks: (A) The issued subsidiary uses the date notifying employees the number of shares...

  • Page 187
    ...The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the financial reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax...

  • Page 188
    ... the sales are recognized. The volume discounts are estimated based on the anticipated annual sales quantities. (32) Business combinations A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of...

  • Page 189
    ... and assessing performance of the operating segments. 5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and...

  • Page 190
    ... 79,113,855 The Group has no cash and cash equivalents pledged to others. (2) Financial assets and liabilities at fair value through profit or loss 2015/12/31 Current items: Financial assets held for trading Open-end funds Listed and OTC stocks Convertible bonds Non-hedging derivatives 2014/12/31...

  • Page 191
    ...-2016/04 2015/11-2016/03 EUR GBP RUB TRY CHF JPY SEK CNH INR IDR USD EUR AUD 1,000 2014/12-2015/03 1,913,300 2014/12-2015/01 200,000 2014/12-2015/01 - (A) Forward exchange contracts The Group entered into forward exchange contracts to sell various forward foreign currencies to hedge exchange rate...

  • Page 192
    ... 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 2015/12/31 Current items: Listed and OTC stocks Unlisted and non-OTC stocks Valuation adjustment Accumulated...

  • Page 193
    ... Expected transactions Forward exchange contracts Fair value of derivative instruments designated as hedges $ 887,285 365,822 2014/12/31 Assets (Liabilities) 367,758 1,936) 365,822 $ ( $ 959,212 $ 71,927) ( 887,285 $ Period of anticipated cash flow 2016/01-2016/06 2015/01-2015/03 Period of gain...

  • Page 194
    ...-2015/02 Derivative financial liabilities for hedging: Forward exchange contracts -EUR/USD EUR -NOK/USD NOK -JPY/USD JPY -INR/USD INR 360,000 2015/12-2016/06 EUR NOK 2,000,000 2015/08-2016/03 JPY 2,500,000 2015/12-2016/02 INR 20,000 2014/12-2015/01 1,800,000 2014/12-2015/03 - (6) Notes and trade...

  • Page 195
    ...to changes in ( 2,685) consolidated entities $ 1,951,749 $ December 31 C. The credit quality of trade receivables that are neither past due nor impaired based on the Group's Credit Quality Control Policy is as follows: Group 1 Group 2 $ $ 2015/12/31 33,057,736 29,266,293 62,324,029 $ $ 2014/12...

  • Page 196
    ... Accounts receivable transferred $ 8,326 Amount derecognised $ 7,493 Amount advanced $ Interest rate of amount advanced - Facilities $ 94,950 (8) Offsetting financial assets and financial liabilities A. The Group has assets (fair value of $41,238,748 and $44,167,318 on December 31, 2015 and 2014...

  • Page 197
    ...603) 22,440 $ 83,023 Profit for the year $ Other comprehensive loss for the year ( - net of income tax Total comprehensive income for the year $ B. The fair value of the Group's associates which have quoted market price is as follows: Others ~41~ $ 2015/12/31 198,094 $ 2014/12/31 262,789 193

  • Page 198
    ... Reversal of impairment Reclassifications Net exchange differences Effects due to changes in consolidated entities December 31, 2015 December 31, 2015 Cost Accumulated depreciation and impairment Buildings Machinery Miscellaneous and equipment equipment Total $ 2,075,767 $ 6,574,840 $ - ( 2,288...

  • Page 199
    ... ( and impairment $ January 1, 2014 $ Acquisitions Disposals ( Amortisation Reclassifications Net exchange differences Effect due to changes in consolidated entities $ December 31, 2014 December 31, 2014 Cost $ Accumulated amortisation ( and impairment $ Computer software 358,664 $ 3,257) ( 355...

  • Page 200
    .... The discount rates used reflect specific risks relating to the relevant operating segments and the time value of currency in real market. D. The Group has no intangible assets pledged to others. (13) Long-term prepaid rents ( shown as "Other non-current assets" ) 2015/12/31 2014/12/31 1,445...

  • Page 201
    ... borrowings Type of borrowings Credit borrowings installment-repayment Mega International Commercial Bank Borrowing period and repayment term Interest rate range Collateral 2015/12/31 Taishin International Bank Bank of Taiwan Others 2014.10~2017.09, payable at maturity date, commencing 2 years...

  • Page 202
    ... period and repayment term Interest rate range Collateral 2014/12/31 Mega International Commercial Bank The Shanghai Commercial & Savings Bank Others 2012.08~2015.08, payable in 3 semi-annual installments, commencing 2 years after the initial date of borrowing 2014.10~2016.10, payable in...

  • Page 203
    ... year, the Company and its domestic subsidiaries will make contribution for the deficit by next March. (B) The amounts recognized in the balance sheets are as follows: 2015/12/31 2014/12/31 Present value of defined benefit obligations ($ 294,438) ($ 213,341) 207,438 202,611 Fair value of plan assets...

  • Page 204
    ... and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS19 paragraph 142. The composition of fair value of plan assets as of December 31, 2015 and 2014 is given in the Annual Labor Retirement Fund Utilization Report announced by the government...

  • Page 205
    ... actuarial assumptions used are as follows: For the years ended December 31, 2015 2014 1.50%~9.00% 1.88%~3.50% Discount rate 2.00%~10.00% 2.00%~4.00% Future salary increases 1.75%~2.00% 1.75%~2.25% Expected return on plan assets Assumptions regarding future mortality experience are set based on...

  • Page 206
    ...of total provisions: Current Total 32,449,433 54,352,941 52,130,547) 1,758,601 36,430,428 2015/12/31 $ 38,036,695 2014/12/31 $ 36,430,428 A. Provisions for warranty The Group provides warranties on 3C products sold. Provision for warranty is estimated based on these products' historical warranty...

  • Page 207
    ... 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, the R.O.C. Securities and Exchange...

  • Page 208
    ... according to a resolution of the Board of Directors adopted in the shareholders' meeting. B. The Company is facing a rapidly changing industrial environment, with the life cycle of the industry in the growth phase. In light of the long-term financial plan of the Company and the demand for cash by...

  • Page 209
    ... $ Gain (loss) on Unrealized gain Financial statements effective portion on valuation of translation Remeasurement of cash flow available-for-sale differences of of defined hedges financial assets foreign operations benefit plans January 1, 2014 -the Company -Subsidiaries -Associates December 31...

  • Page 210
    ... to the employees and pay remuneration to the directors and supervisors that account for no less than 1% and no more than 1%, respectively, of the total distributed amount. However, in accordance with the Company Act amended on May 20, 2015, a company shall distribute employee compensation, based on...

  • Page 211
    ...in the 2014 financial statements. Information about the appropriation of employees' compensation (bonuses) and directors' and supervisors' remuneration by the Company as proposed by the Board of Directors and resolved by the stockholders is posted in the "Market Observation Post System". (27) Income...

  • Page 212
    ... value of inventories Unrealized profit from sales Unrealized purchase discounts Unrealized sales discounts Unrealized provisions for warranty ...for-sale financial assets Others Subtotal Total ( ( ( profit or loss comprehensive income Effect due to changes in consolidated entities Effect of exchange ...

  • Page 213
    ...sale financial assets Others Subtotal Total ( ( ( profit or loss comprehensive income Effect due to changes in consolidated entities Effect of exchange... income tax assets are as follows: 2015/12/31 Year incurred 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Amount filed/assessed $ 337,163 $...

  • Page 214
    ... Year of expiration 2015 2016 2017 2018 2019 2020 2021 2016-2022 2018-2023...Company's income tax returns through 2013. H. Unappropriated retained earnings: 2015/12/31 2014...account (ICA) and creditable ratio: (A) ICA balance $ 2015/12/31 14,416,357 $ 2015 (Expected) 16.62% 2014/12/31 13,200,713 2014...

  • Page 215
    ... shares employees' remuneration Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares $ 17,097,470 - 6,270 $ 17,097,470 749,030 $ 22.83 For the year ended December 31, 2014 Weighted average number of ordinary shares...

  • Page 216
    ...the years ended December 31, 2015 and 2014, 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 217
    ...: For the years ended December 31, 2015 2014 Purchases of goods -Associates -Others Purchases of services -Associates -Others $ $ 40,861 752,179 793,040 450 15,957 16,407 809,447 $ $ 31,297 642,292 673,589 649 16,142 16,791 690,380 Purchase terms are open account 45 to 120 days, 45 to 90 days...

  • Page 218
    ...series, LED of NEXUS 7, lithium battery product, image thumbnail, smart lock for Android 5.0, Zhuyin input function, multi-window for dual apps, User interface, DVD player restriction technology, Wireless multiplex data transmission system, audio signal encoding and decoding system against the Group...

  • Page 219
    ..., return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the liability ratio. This ratio is calculated as total liabilities by total assets. Total liabilities is calculated as "current liabilities plus non-current liabilities...

  • Page 220
    ...position and financial performance. The Group uses variety of derivative financial instruments to hedge certain risk exposures. Please refer to Notes 6(2) and 6(5). (B) The Group's key financial plans are all reviewed by the board of directors under the related principles and internal control system...

  • Page 221
    ...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 222
    ... 31, 2015 and 2014 amounted to $3,566,013 and $3,033,256, respectively. Price risk a. The Group is exposed to equity securities price risk because of investments held by the Group either as available-for-sale on stock investments or at fair value through profit or loss. To manage its price risk...

  • Page 223
    ... 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 224
    ... 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 years 2014/12/31...

  • Page 225
    ... Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. B. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks...

  • Page 226
    ... or other valuation methods, including calculated by applying model using market information available at the financial reporting date. (C) For high-complexity financial instruments, the fair value is measured by using self-developed valuation model based on the valuation method and technique widely...

  • Page 227
    ... balance sheets. The pricing and inputs information used during valuation are carefully assessed and adjusted based on current market conditions. D. GLOBALWAFERS CO., LTD. has been listed on the OTC from September 25, 2015, therefore, the Group has transferred the fair value from Level 2 to...

  • Page 228
    ... is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement: Fair value at December 31, 2015 Equity instruments: Unlisted and $ non-OTC stocks 28,131 Valuation...

  • Page 229
    ... INFORMATION (1) General information Management has determined the reportable operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. There is no material change in the basis for formation of entities and division of segments in the Group...

  • Page 230
    ...900,341 Total The above non-current assets exclude financing instruments, deferred income tax assets and certain other non-current assets. (6) Major customer information No single customer accounts for more than 10% of the consolidated operating revenue for the years ended December 31, 2015 and 2014...

  • Page 231
    ... of ASUSTEK COMPUTER INC. as of December 31, 2015 and 2014, and the related separate statements of comprehensive income, of changes in equity and of cash flows for the years then ended. These separate financial statements are the responsibility of the Company's management. Our responsibility is...

  • Page 232
    In our opinion, based 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, 2015 and 2014, and the results of its operations ...

  • Page 233
    ... OF NEW TAIWAN DOLLARS) DECEMBER 31, 2015 AMOUNT % DECEMBER 31, 2014 (ADJUSTED) AMOUNT % ASSETS Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Available-for-sale financial assets current Trade receivables Trade receivables - related parties...

  • Page 234
    ASUSTEK COMPUTER INC. SEPARATE BALANCE SHEETS DECEMBER 31, 2015 AND 2014 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) DECEMBER 31, 2015 AMOUNT % DECEMBER 31, 2014 (ADJUSTED) AMOUNT % LIABILITIES AND EQUITY Current liabilities Notes and trade payables Other payables - accrued expenses Current ...

  • Page 235
    ASUSTEK COMPUTER INC. SEPARATE STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA) FOR THE YEARS ENDED DECEMBER 31, 2015 2014 (ADJUSTED) ITEMS Notes AMOUNT % AMOUNT Operating revenue 6(16) ...

  • Page 236
    ASUSTEK COMPUTER INC. SEPARATE STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) Capital Surplus Retained Earnings Other Equity Common shares Share premium Others Legal reserve Special reserve Unappropriated retained ...

  • Page 237
    ... Share of profit of subsidiaries, associates and joint ventures accounted for under equity method Interest income Dividend income Unrealized profit from sales Others Changes in assets/liabilities relating to operating activities Financial assets at fair value through profit or loss Trade receivables...

  • Page 238
    ..., 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 of computer cases and molds and non...

  • Page 239
    ... non-financial assets only, fair value is determined based on the highest and best use of the asset. Based on the Company's assessment, the adoption of the standard has no significant impact on its financial statements, and the Company disclosed additional information about fair value measurements...

  • Page 240
    ... 1, 2014 January 1, 2016 The Company is assessing the potential impact on the financial position and results of operations of the new standards, interpretations and amendments above. The related impact will be disclosed when the Company completes the evaluation. 4. SUMMARY OF SIGNIFICANT ACCOUNTING...

  • Page 241
    ... The separate financial statements are presented in "New Taiwan Dollars (NTD)", which is the Company's functional and presentation currency. A. Foreign currency transactions and balances (A) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing...

  • Page 242
    ..., excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the end of the financial reporting period. Otherwise they are classified as non-current assets. B. Liabilities that meet one of the following criteria are...

  • Page 243
    ... 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 initially recognized at fair value. Related...

  • Page 244
    ... payment status of borrowers in the group or national or local unfavorable economic conditions that correlate with defaults on the assets in the group; (G) Information about significant changes with an adverse effect that have taken place in the technology, market, economic or legal environment in...

  • Page 245
    ... in profit or loss on a straight-line basis over the lease term. (12) Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials and other direct...

  • Page 246
    ...influence, if an investor holds, directly or indirectly 20% or more of the voting power of the investee. Investments in associates are accounted for under equity method and are initially recognized at cost. G. The Company's share of its associates' post-acquisition profits or losses is recognized in...

  • Page 247
    ... case that an associate issues new shares or buys treasury stocks (including the Company does not acquire or dispose shares proportionately), which results in a change in the Company's ownership percentage of the associate but maintains significant influence on the associate, then "capital surplus...

  • Page 248
    ... life of 50 years. (17) Intangible assets Computer software is amortised on a straight-line basis over its estimated useful life of 1~5 years. (18) Impairment of non-financial assets A. The Company assesses at each end of the financial reporting period the recoverable amounts of those assets where...

  • Page 249
    ... the obligation on the end of the financial reporting period, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of...

  • Page 250
    ... between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution. 246

  • Page 251
    ...The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the financial reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax...

  • Page 252
    ... on the effective date of new shares issuance. (28) Revenue recognition Sales of goods The Company is primarily engaged in the selling of 3C products. Revenue is measured at the fair value of the consideration received or receivable taking into account value-added tax, returns, rebates and discounts...

  • Page 253
    ...509 $ $ The Company has no cash and cash equivalents pledged to others. (2) Financial assets at fair value through profit or loss 2015/12/31 Current items: Financial assets held for trading Open-end funds Convertible bonds Listed and OTC stocks Forward exchange contracts 2014/12/31 $ $ 3,567...

  • Page 254
    ... unlisted and non-OTC stocks and private fund should be classified as "available-for-sale financial assets". However, as the investments are not traded in active market, and no sufficient industry, financial information and investment portfolio of the private fund can be obtained, the fair value of...

  • Page 255
    ... 10,784 $ 111,476 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: 2015/12/31 Group 1 Group 2 $ $ 74,026,611 $ 5,565,734 79,592,345 $ 2014/12/31 86,360,702 5,964,275 92...

  • Page 256
    ... trading object is subsidiary or associate. D. The Company does not hold any collateral as security. (6) Offsetting financial assets and financial liabilities A. The Company has assets (fair value of $39,891,827 and $44,076,377 on December 31, 2015 and 2014, respectively) and liabilities (fair value...

  • Page 257
    ....00 100.00 100.00 43.89 $ $ A. Subsidiaries Information about the Company's subsidiaries is provided in Note 4(3) of the 2015 consolidated financial statements (not presented herein). B. Associates The Company's associates are all immaterial, and the share of the associates' operating results are...

  • Page 258
    ...) 206,448 $ 273,958 $ 3,241,556 $ The Company has no property, plant and equipment pledged to others. (10) Pensions A. (A) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor...

  • Page 259
    ... contribution pension plan (New Plan) under the Labor Pension Act, covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the...

  • Page 260
    ... employee stock options), and the outstanding capital was $7,427,603 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected. The number of the Company's ordinary shares outstanding at the beginning and ending for the years ended December 30, 2015 and 2014...

  • Page 261
    ... according to a resolution of the Board of Directors adopted in the shareholders' meeting. B. The Company is facing a rapidly changing industrial environment, with the life cycle of the industry in the growth phase. In light of the long-term financial plan of the Company and the demand for cash by...

  • Page 262
    ... of cash flow hedges January 1, 2014 -the Company -Subsidiaries -Associates December 31, 2014 ($ Unrealized gain on valuation of available-for-sale financial assets Financial statements translation Remeasurement differences of of defined foreign operations benefit plans 271,393) ($ 2,375,434 163...

  • Page 263
    ...to the employees and pay remuneration to the directors and supervisors that account for not less than 1% and no more than 1%, respectively, of the total distributed amount. However, in accordance with the Company Act amended on May 20, 2015, a company shall distribute employee compensation, based on...

  • Page 264
    ... in the 2014 financial statements. Information about the appropriation of employees' compensation (bonus) and directors' and supervisors' remuneration by the Company as proposed by the Board of Directors and resolved by the shareholders is posted in the "Market Observation Post System". (21) Income...

  • Page 265
    ...accounting profit: For the years ended December 31, 2015 2014 Income tax calculated based on profit before tax $ 3,569,655 $ 3,973,934 and statutory tax rate... results Impact of change in the tax rate on unrealized profit 371,696 ( 190,524) from sales Effect from exchange differences 349,328 123...

  • Page 266
    ... provisions for legal claims and royalty Others Subtotal - Deferred income tax liabilities: Investment income from foreign investees Unrealized exchange gains Currency translation differences Unrealized gain on valuation of available-for-sale financial assets Subtotal Total December 31 $ 417...

  • Page 267
    ... December 31, 2014 Weighted average number of ordinary shares outstanding (shares in thousands) 742,760 4,153 Amount after income tax Basic earnings per share Profit for the year Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares employees' bonus Profit for the...

  • Page 268
    ... 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 transactions are similar to those for third parties. B. Purchases of goods and services: For the years ended December 31, 2015 2014 Purchases of...

  • Page 269
    ..., thermal management method and device, multi-core ARM processor products, Google Chrome, GaN LED products, UMTS network devices, Google Map, notebooks, Pad, desktop, router, the function for eliminating noise, wireless support products and UMTS telecommunication devices against the Company. These...

  • Page 270
    ...for patent infringement including Padfone series, LED of NEXUS 7, lithium battery product, image thumbnail, smart lock for Android 5.0, Zhuyin input function, multi-window for dual apps, User interface, audio signal encoding and decoding system and audio stream against the Company. These lawsuits or...

  • Page 271
    ... position and financial performance. The Company uses variety of derivative financial instruments to hedge certain risk exposures. Please refer to Note 6(2). (B) The Company's key financial plans are all reviewed by the board of directors under the related principles and internal control system...

  • Page 272
    .... 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: 2015/12/31...

  • Page 273
    ... 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 274
    ... a rating of "A" class above as evaluated by an independent party are accepted as counterparties. b. No credit limits were exceeded during 2015 and 2014, and management does not expect any significant losses from non-performance by these counterparties. c. The credit quality information of financial...

  • Page 275
    ... fair value measurements Financial assets at fair value through profit or loss Listed and OTC stocks Open-end funds Convertible bonds Forward exchange contracts Available-for-sale financial assets Listed and OTC stocks Unlisted and non-OTC stocks Convertible bonds 2015/12/31 Level 2 Level 3 Total...

  • Page 276
    ... or other valuation methods, including calculated by applying model using market information available at the financial reporting date. (C) For high-complexity financial instruments, the fair value is measured by using self-developed valuation model based on the valuation method and technique widely...

  • Page 277
    ... balance sheets. The pricing and inputs information used during valuation are carefully assessed and adjusted based on current market conditions. D. GLOBALWAFERS CO., LTD. has been listed on the OTC from September 25, 2015, therefore, the Company has transferred the fair value from Level 2 to...

  • Page 278
    ... information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement: Fair Value at Significant Range Relationship December 31, of inputs to Valuation unobservalbe (weighted 2015 input...

  • Page 279
    ASUSTek Computer Inc. Chairman !