D-Link 2004 Annual Report Download - page 29

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(Continued)
D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2003 and 2004
(amounts expressed in thousands of New Taiwan dollars,
except for per share information and unless otherwise noted)
1. Organization and Principal Activities
D-Link Corporation (“D-Link”) was founded in the Hsinchu Science Park in the Republic of China
(“ROC”) on June 20, 1987. D-Link’ s main activities include the research, development, production
and sale of personal computers, local area network systems, wireless local area network (“LAN”) and
spare parts for integrated circuits.
On May 8, 2003, D-Link’ s shareholders’ meeting resolved a spin-off whereby on August 16, 2003,
D-Link separated its original design manufacturing (“ODM”) and original equipment manufacturing
(“OEM”) operations from its D-Link brand business and transferred related operating assets and
liabilities to establish Alpha Networks Inc. (“Alpha”). D-Link received 200 million common shares
(par value NT$10) from Alpha at NT$11.77 per share.
As of December 31, 2004, D-Link and subsidiaries had about 5,600 employees.
For the purpose of preparing the consolidated financial statements, an entity is deemed a subsidiary if
D-Link directly or indirectly owns 50% or more of its voting stock. The consolidated subsidiaries are
summarized below.
Percentage of Ownership
at December 31,
2003 2004
1. D-Link Systems, Inc. (“DSI”) 93 94
2. D-Link Holding Company Ltd. (“DHCL”) 100 100
(1) D-Link (Europe) Ltd. (“DEL”) 100 100
y D-Link (Holding) Ltd. (“DHL”) and subsidiaries 100 100
y D-Link Denmark A.S. (“DDAS”) 100 100
y D-Link France (“DF”) 100 100
y D-Link Scandinavia AB (“DSAB”) 100 100
y D-Link Iberia SL (“DI”) 100 100
y D-Link Mediterraneo SRL (“DMSRL”) 100 100
y D-Link Netherlands (“DN”) 100 100
y D-Link Deutschland (“DD”) and subsidiaries 100 100
(2) D-Link China Inc. (“DC”) 100 100
y D-Link Electronics (Wujiang) Co., Ltd. (“DECL”) 100 100
(3) D-Link Shang-Hai Co., Ltd. (“DSCL”) 100 100