HTC 2007 Annual Report Download - page 108

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211210
A REVIEW AND ANALYSIS OFTHE COMPANY'S FINANCIAL CONDITION
AND OPERATING RESULTS,AND A LISTING OFRISKS
5 THE COMPANY'S REINVESTMENT POLICY
F
OR THE MOST RECENT
F
ISCAL YEAR
(1) An
a
l
ys
i
s o
f
Equ
i
t
y Inv
e
s
t
m
e
n
t
s
U
nit :
N
T$ thousands
Amount Primary reason for Corrective Other future
Item (Note) Policy profits or losses plans investment plans
H.T.C. (B.V.I.) Corp.
632,042 Financial holding company: indirect Losses by the invested enterprise _ Please refer to (2)
investment in overseas maintenance,
installation, after-sales service, and .
market development companies
Hua-Chuang Automobile 500,000 Telematics Service Platform Operations are in the _ Please refer to (2)
Information Technical Center Co., Ltd expansion stage
High Tech Computer . 560,660 Investment Holding Gains by the invested enterprise _ Please refer to (2)
Aisa Pacific Pte. Ltd
High Tech Computer . 315,771 Provide overseas sales, maintenance, Regular income from providing sales and _ Please refer to (2)
Singapore Pte. Ltd and after-sales services. marketing services to parent company
N
ote: The invest
m
ent a
m
ount for the current fiscal year exceeds five percent of paid-in capital.
(2) Inv
e
s
t
m
e
n
t
P
l
a
nn
i
ng
The projected mainland China investment plan
approved by the board of directors calls for HTC to
conduct a capital increase of US$9.6 million at its
mainland-area investment HIGH TECH COMPUTER
(SUZHOU) CO., LTD. through a capital increase at
H.T.C. (B.V.I.) Corp., and to acquire its mainland-area
investment, Wei-Hon Electronics (Shanghai) Ltd., and
establish a plant in Nanhui, Shanghai through a
capital increase at High Tech Computer Asia Pacific
VII
PTE. Ltd with a total investment of US$48 million.
HTC plans to implement these two mainland
investment projects after receiving approval from the
Investment Commission of Taiwan's Ministry of
Economic Affairs. Future investment plans will focus
on developing core business by expanding investment
in related businesses. Our ultimate goal is to reduce
product costs, boost overall product value, enhance
customer service, and improve the company's
operational performance.
3. CASH
F
LOW
(1) An
a
l
ys
i
s o
f
Ch
a
ng
e
i
n C
a
sh
F
l
ow
f
or Th
e
Mos
t
R
e
c
e
n
t
F
i
s
c
a
l
Y
ea
r
U
nit :
N
T$ thousands
Item
2007 2006
%
Cash Flow Ratio (%)
116 106 9
Cash Flow Adequacy Ratio (%)
291 296 ( 2)
Cash Flow Reinvestment Ratio (%)
47 44 7
Explanation and analysis of change in increase/decrease ratios:
Analysis need not be conducted if the period-on-period change is less than 20 percent for the cash flow rate, cash flow adequacy ratio, and cash re-invest
m
ent rate.
(2) C
a
sh L
i
qu
i
d
i
t
y An
a
l
ys
i
s
f
or Th
e
Com
i
ng Y
ea
r
U
nit :
N
T$ thousands
Remedial measures for
projected cash deficit
Beginning cash Projected whole-year Projected whole-year Projected cash surplus
Financial
balance
cash flow from operating activities
cash outflow (deficit) amount
Investment plan management plan
55,036,232 39,232,609 29,879,137 64,389,704 - -
N
ote:
R
e
m
edial
m
easures for projected cash deficit:
N
ot Applicable
4. THE E
FF
ECT ON
F
INANCIAL OPERATIONS O
F
MATERIAL CAPITAL
EXPENDITURES DURING THE MOST RECENT
F
ISCAL YEAR.
(1) R
e
v
i
e
w
a
nd An
a
l
ys
i
s o
f
M
a
t
e
r
i
a
l
C
a
p
i
t
a
l
Exp
e
nd
i
t
ur
e
s
a
nd
F
und
i
ng Sour
c
e
s
> M
a
t
e
r
i
a
l
c
a
p
i
t
a
l
e
xp
e
nd
i
t
ur
e
u
t
ili
z
a
t
i
on
a
nd
f
und
i
ng sour
c
e
s
U
nit :
N
T$ thousands
Planned items Actual or projected Actual or projected Total amount of Actual or projected capital utilization
sources of capital date of completion required capital Year 2006 Year 2007 Year 2008 Year 2009 Year 2010
Establishment of plants/offices, and Working capital Year 2008 1,079,918 372,131 587,349 120,438
purchase of machines and facilities
Purchase of machines and equipment Working capital Year 2008 610,329 610,329
Purchase of land for Working capital Year 2010 3,335,000 1,167,250 1,167,250 1,000,500
Taipei R&D headquarters building
> Pro
j
e
c
t
e
d b
e
n
e
f
i
t
s
• Establishment of plants/offices and the R&D building : Provide employees with appropriate and well-
planned working environments to meet company needs for sustainable operation
• Purchase of machines and facilities : To expand production capacity, reduce costs, and further increase
market share and operating income.
SPECIAL N OTESI CASH
F
LOW
l
CAPITAL EXPENDITURES
l
REINVESTMENT
l