HTC 2007 Annual Report Download - page 8

I
1110
F INANCIAL OVERVIEW
Consolidated revenue in 2007 of NT$118.218 billion
represented an NT$12.860 billion (12.2%) increase
over 2006 revenue of NT$105.358 billion. Of the
9,918,000 units shipped in 2007, more than half
were 3G wireless devices (the first time such
exceeded 50% of sales volume). Non-ODM growth
topped 30%. Quarterly profitability for the company
showed robust growth that reflected the steadily
decreasing importance of ODM sales. HTC's
consolidated profit margin in 2007 of 37.9%
represented growth of 6.3 percentage points over
the 31.6% achieved in 2006. Increased investment
in global brand administration, sales and after sales
service operations held net profit from operations in
2007 to about the same as in 2006. Net profits for
the year before and after taxes totaled NT$ 32.151
billion and NT$ 28.939 billion, respectively. The 2007
after tax profit margin of 24.4% was 0.3 percentage
point higher than the previous year. EPS was NT$
56.08 before tax and NT$ 50.48 after tax.
( N ote: 2007
financial forecast nu
m bers were not disclosed and thus cannot be
co
m pared to actual achieve m ents )
KEY ACCOMPLISHMENTS
HTC made impressive progress along other fronts
as well during 2007:
>8 M a y 2007
The board of directors approved, pending
shareholder concurrence, the purchase of the
principal subsidiary operations (located in
Taiwan, Hong Kong, Singapore and Australia)
of Dopod International, a leading dirstributor
of smartphone in East Asia. HTC took the
occasion also to announce the launch of its
strategy to take the HTC brand global.
>5 Jun e 2007
HTC announced the global launch of HTC
TouchTM in London. This revolutionary product,
integrating touch screen browsing onto a
powerful smartphone platform, draws wireless
telecom devices closer to the user and signals
the arrival of a new "age of touch". HTC Touch
gives users a simple yet powerful interface
that succeeds on an exceptionally human
level.
>6 Nov e mb e r 2007
HTC joined an alliance with innovative search
engine leader Google and other leaders in the
high tech and wireless communications
sectors to develop "Android", the first truly
open, truly comprehensive platform for mobile
communications devices. The Open Handset
Alliance, comprised of Google, T-Mobile, HTC
and Qualcomm, is currently working toward
developing the first Android-based mobile
phone – an exceptional product sure to deliver
an entirely new mobile communications
experience.
CORPORATE GOVERNANCE
AND SOCIAL RESPONSIBILITY
The election of an entirely new board of directors on
20 June 2007 brought two new independent directors,
Chen-Kuo Lin and Josef Felder, to the board.
Additionally, Po-Cheng Ko agreed to serve as one of
HTC's supervisors. Both developments moved the
firm significantly forward toward achieving
comprehensive corporate governance.
The board of directors donates annually to the HTC
Social Welfare Foundation, which for many years has
funded leadership and character training for
elementary, junior high and senior high students. Over
13,000 students have benefited from Foundation-
supported training through the years. Particularly
strong support from local leaders in Yuli Township in
Hualien and Longtan Township in Taoyuan led to their
joint signing of a "Townships of Character" plan.
Under the plan, monthly activities are held to highlight
personal examples of exceptional character, with
training provided to township office employees, police,
public hospital staff, fire departments, local
governments and so on.
The Foundation also sponsors scholarships for
needy students, stipends for needy children and
after school programs. More than 2,000 needy
children and disadvantaged youth, both in Taiwan
and overseas, benefit from program funding.
THE F UTURE
Since its inception, HTC has positioned itself as a
designer of innovative, easy-to-use wireless
telecommunications devices that deliver to
consumers an experience that beats all competitors
in terms of simplicity and satisfaction. Looking
forward, we see room for significant further growth in
wireless handheld device demand. Taking an
optimistic approach to economic prospects on the
horizon, we will continue to leverage an outstanding
track record for innovation and quality to continue to
improve HTC products based on consumer
preferences and user-driven perceptions and
function needs. Maintaining and expanding
customer loyalty, HTC is on track to developing a
global brand that is emotive and inspiring — a brand
set to create a new wave of competitive advantages
that will benefit shareholders, HTC customers and
employees alike.
LETTER TO SHAREHOLDERS
High Tech Computer Corp.
Chairman
CEO & President
LETTER TO SHAREHOLDERS