HTC 2007 Annual Report Download - page 94

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AN OVERVIEW OFTHE COMPANY'S FINANCIAL STATUS
183182
from the grant date, the option holders are
eligible to exercise their rights on all the options
owned. The exercise period is five years. As of
December 31, 2007, the Company had issued
to employees 3,000 thousand units of stock
options, which were increased to 7,011
thousand units by taking into account the effect
of stock dividends and the issuance of additional
common stocks. After the employees' choosing
to give up the stock options in 2007, there were
no employee stock options outstanding. The
remaining employee stock options which were
not issued, amounting to 4,000 thousand units,
expired on December 25, 2003.
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The Company issued 14,400 thousand common
shares corresponding to 3,600 thousand units of
Global Depositary Receipts (GDRs). For this
GDR issuance, the Company s stockholders,
including Via Technologies, Inc., also issued
12,878.4 thousand common shares,
corresponding to 3,219.6 thousand GDR units.
Thus, the entire offering consisted of 6,819.6
thousand GDR units. Each GDR represents four
common shares, with par value of NT$131.1.
For this common share issuance, net of related
expenses, NT$1,696,855 thousand was
accounted for as capital surplus. This share
issuance for cash was completed and registered
on November 19, 2003.
The holders of these GDRs have the same
rights and obligations as the stockholders of the
Company. However, the distribution of the
offering and sales of GDRs and the shares
represented thereby in certain jurisdictions may
be restricted by law. In addition, the GDRs
offered and the shares represented are not
transferable, except in accordance with the
restrictions described in the GDR offering
circular and related laws applied in Taiwan.
Through the depositary custodian in Taiwan,
GDR holders are entitled to exercise these
rights:
a. To vote; and
b. To receive dividends and participate in new
share issuance for cash subscription.
Taking into account the effect of stock dividends,
the GDRs increased to 7,833.3 thousand units
(31,333.2 thousand shares). The holders of
these GDRs requested the Company to redeem
the GDRs to get the Company's common
shares. As of December 31, 2007, there were
5,156.6 thousand units of GDRs redeemed,
representing 20,627 thousand common shares,
and the outstanding GDRs represented 10,707
thousand common shares or 1.87% of the
Company's common shares.
VI
20. STOCKHOLDERS' EQUITY
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The Company's outstanding common stock as
of January 1, 2005 amounted to NT$2,714,276
thousand, divided into 271,427 thousand shares
at NT$10.00 par value. After the registration of
the conversion of bonds into 4,884 thousand
shares (NT$48,838 thousand) was completed,
these shares were transferred to common
stocks. In the first and second quarters of 2005,
holders of US$45,970 thousand in bonds
requested to convert their holdings into 12,452
thousand shares (NT$124,519 thousand). In
June 2005, the stockholders approved the
transfer of retained earnings amounting to
NT$577,527 thousand and employee bonuses
amounting to NT$105,000 thousand to capital
stock. As a result, the amount of the Company's
outstanding common stock as of December 31,
2005 increased to NT$3,570,160 thousand,
divided into 357,016 thousand common shares
at NT$10.00 par value.
In May 2006, the stockholders approved the
transfer of retained earnings amounting to
NT$714,032 thousand and employee bonuses
amounting to NT$80,000 thousand to capital
stock.
In April 2007, the Company retired 3,624
thousand treasury shares (NT$36,240
thousand, or US$1,118 thousand). Also, in June
2007, the stockholders approved the transfer of
retained earnings amounting to NT$1,298,385
thousand (US$40,036 thousand) and employee
bonuses amounting to NT$105,000 thousand
(US$3,238 thousand) to capital stock. As a
result, the amount of the Company's outstanding
common stock as of December 31, 2007
increased to NT$5,731,337 thousand
(US$176,729 thousand), divided into 573,134
thousand common shares at NT$10.00
(US$0.30) par value.
In their meeting on December 11, 2002, the
Company's Board of Directors resolved to issue
7,000 thousand units of employee stock options
in accordance with Article 28.3 of the Securities
and Exchange Law. Each option represents the
right to buy one newly issued common share of
the Company. The exercise price is the closing
price of the Company's common shares on the
option issuance date or the share par value,
whichever is higher. The option holders can
exercise their right for up to 35% of the granted
option units no earlier than two years from the
grant date. After three years from the grant date,
the holders can exercise their right for at up to
70% of the granted option units. After four years
FINANCEI CONSOLIDATED REPORT
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