HTC 2007 Annual Report Download - page 112

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219
• There was no change in HTC managerial
control in the 2007 fiscal year.
> Litigious and non-litigious matters. List major
litigious, non-litigious or administrative
disputes that:
(1) involve the company and/or any company
director, any company supervisor, the general
manager, any person with actual responsibility
for the firm, any major shareholder holding a
stake of greater than 10 percent, and/or any
company or companies controlled by the
company; and
(2) have been concluded by means of a final and
unappealable judgment, or are still under
litigation. Where such a dispute could
materially affect shareholders' equity or the
prices of the company's securities, the annual
report shall disclose the facts of the dispute,
amount of money at stake in the dispute, the
date of litigation commencement, the main
parties to the dispute, and the status of the
dispute as of the date of printing of the annual
report.
: None.
> Other important risks, and mitigation
measures being or to be taken. : None.
218
> Risks associated with any consolidation of
sales or purchasing operations, and mitigation
measures being or to be taken :
• Purchasing :
The technical capabilities of raw material,
parts, and component suppliers are maturing
along with the development of mobile phone
industry technologies, giving HTC a broader
range of alternative materials to choose from
in the design stage for new products while
avoiding the risks inherent in having a single
raw material supply source. Achieving
economies of scale in production also helps
reduce the cost of obtaining materials.
• Sales :
HTC markets products throughout Europe, the
Americas, and Asia, with a marketing model
that primarily sells products through global
telecom providers and through own-brand
sales. With the advent of the 3.5G era, the
impact of telecom providers on the mobile
phone market is gradually increasing, which
should be very helpful to HTC's product
penetration. In addition to continuing to
expand the market in tandem with its existing
clients and strengthening cooperative ties with
strategic partners, HTC will continue to
explore cooperative relationships with world-
class manufacturers in the information and
communications industries that will help the
company keep abreast of trends in market
development. Because of a gradual increase
in the proportion of own-brand sales, HTC will
strengthen its management distributors
maintain strong relationships with them in
order to lower operational risk and sales
concentration risk.
> Effect upon and risk to the company in the
event a major quantity of shares belonging to
a director, supervisor, or shareholder holding
greater than a 10 percent stake in the
company has been transferred or has
otherwise changed hands, and mitigation
measures being or to be taken. :
• As of the printing date of this annual report, no
transfer or change of hands of a significant
portion of HTC share rights has occurred with
respect to any director, supervisor, or major
shareholder holding more than a 10 percent
stake in the company
> Effect upon and risk to company associated
with any change in governance personnel or
top management, and mitigation measures
being or to be taken :
VII
SPECIAL N OTESI RISK EVENTS
l
A REVIEW AND ANALYSIS OFTHE COMPANY'S FINANCIAL CONDITION
AND OPERATING RESULTS,AND A LISTING OFRISKS