HTC 2009 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    C O N T E N T S I. LETTER TO SHAREHOLDERS ...4 II. COMPANY PROFILE ...9 III. BUSINESS OPERATIONS ...31 IV. CORPORATE GOVERNANCE ...47 V. CAPITAL AND SHARES ...79 VI. FINANCIAL STATUS, OPERATING RESULTS AND RISK MANAGEMENT ...87 VII. AFFILIATE INFORMATION AND OTHER SPECIAL NOTES ...95 2

  • Page 3
    LETTER TO SHAREHOLDERS Chairman

  • Page 4
    ...market leadership in Android-based smart phones. In its Windows phone product line, HTC launched in 2009 the HTC HD2, which features a 4.3-inch touch screen and 1GHz mobile processor. The HD2 is the world's first Windows phone to incorporate capacitive touch (touch screen) technology. With high-end...

  • Page 5
    CEO & President

  • Page 6
    II. COMPANY PROFILE

  • Page 7
    ... in order to better anticipate and meet user product and service expectations. The company will also continue to cultivate in-house global logistics management capabilities to support fully the success of HTC as a top-tier international brand. 10 HTC's registration number on the Taiwan Stock...

  • Page 8
    ... products. ThenPresident (now Board Member) HT Cho and then-Vice President (now Chief Executive Officer) Peter Chou brought together HTC's first R&D team, which developed the world's first handheld personal data assistant (PDA) to run on Windows® CE. This positive first step established HTC...

  • Page 9
    ... of Team Columbia-HTC in the Tour de-France competition and the Wallpaper Annual Design Awards and advertising activities worldwide. The promotion activities campaign wereas launched to raise awareness for the HTC brand and enhance overall brand value. In the realm of mobile Internet products and...

  • Page 10
    ... are increasingly simple to use and increasingly customized in order to meet and fulfill expanding market demand. Our hope is to share with as many as possible the promise and new horizons opened by touch screen mobile telecommunications as well as HTC's flair for making technology personal. 16 17

  • Page 11
    ... MANAGEMENT TEAM > No. 1 2 Cher Wang Name Peter Chou Fred Liu Chairman Position Chief Executive Officer & President Corporate Senior Executive Vice President & President of Engineering and Operation 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Hui-Ming Cheng Chief Financial Officer...

  • Page 12
    COMPANY PROFILE DIRECTORS AND SUPERVISORS BOARD OF DIRECTORS Cher Wang > Chairman > Chairman of the Compensation Committee HT Cho > Director > Member of the Compensation Committee Wen-Chi Chen > Director Tan Ho-Chen Chen-Kuo Lin > Director > Independent Director > Member of the Compensation ...

  • Page 13
    ... PROFILE ORGANIZATION Procurement & Supply Chain Management Information Technology Manufacturing Operation Center Customer Service and Quality Assurance Division Global Operation Center R&D Center Marketing Global Sales & Product Innovation Center Corporate Senior Executive Vice President...

  • Page 14
    ... in production. > Information Technology Plans projects related to the establishment and enhancement of corporate IT systems; sets up and maintains security and data network systems; develops and manages disaster recovery plans for company software/hardware systems. > Manufacturing Operation Center...

  • Page 15
    ... Employees represent one of HTC's most valuable assets. The company has in recent years actively recruited outstanding talent into its ranks - particularly in the areas of product design, user interface, brand promotion, and sales and marketing. While bringing on board professionals from Europe...

  • Page 16
    III. BUSINESS OPERATIONS

  • Page 17
    ...friendly interfaces that fit with user habits and lifestyles to earn a greater share of this expanding market segment. Following the launch of HTC Touch, HTC announced the world's first Androidbased smart phone in 2008. This pioneer offering broadened the company's product line beyond Windows Mobile...

  • Page 18
    ... newly open source operating system- Android OS, have already begun investing in related design and R&D efforts. With a potential for growth that simply cannot be underestimated, other established operating systems such as Symbian, Windows Mobile and Blackberry are also being upgraded and enhanced...

  • Page 19
    ... growth and competitiveness, HTC will work diligently to neither sacrifice fair profits nor instigate predatory price cutting strategies. Instead, we will continue to adjust our overall business model to expand HTC's market share and win a growing number of HTC product users while keeping corporate...

  • Page 20
    ... and competitiveness - HTC looks to enhance worldwide its brand value and brand recognition through association with a dedicated, highly successful sports team. > New "Quietly Brilliant" Brand Positioning & Global Advertising YOU campaign HTC launched "Quietly Brilliant" as the company's new brand...

  • Page 21
    ... of smart phone products that work to tap the full potentials of Windows Mobile, Android and Brew MP operating systems. Apart from enhancing 3G and 4G broadband transfer speeds, HTC focuses efforts on improving the look and feel of all models and infusing products with new changes and features...

  • Page 22
    ... Forecasting HTC has been working diligently to enhance the timeliness and transparency of financial disclosures. In addition to publishing important data related to HTC's business in a timely fashion online in accordance with regulations, HTC publishes revenue reports for the preceding month by...

  • Page 23
    ... to use CDMA technology to manufacture and sell units; > royalty payment based on agreement. PRODUCTION AND SALES FOR MOST RECENT TWO-YEAR PERIOD Production Unit: 1,000 units / NT$ millions 2009 Production Capacity Smart phones TOTAL 16,848 16,848 Production Quantity 12,308 12,308 Production Value...

  • Page 24
    I V. CORPORATE GOVERNANCE

  • Page 25
    ...% Other persons holding shares in their name shares 0 % 0.00% Principal work experience and academic qualifications > Master in Economics from the University of California, Berkeley > First International Computer, Inc. (FIC) into the motherboard business while in the position of General Manager of...

  • Page 26
    ...Right Hand Column: Not applicable > Directors' and Supervisors' Information(II) Conditions Meet one of the following professional qualification requirements, together with at least five years work experience An instructor or higher position in a department of commerce, law, finance, accounting, or...

  • Page 27
    ... T-Mobile > National Taiwan University of Science and Technology > Director, Digital Equipment Corporation Positions held concurrently in any other company > Director (Representative), HTC America, Inc. > Director (Representative), HTC EUROPE CO. LTD > Director (Representative), High Tech Computer...

  • Page 28
    ..., Goldman Sachs Group, Inc. > Sr.Marketing Manager, Marvell Technology Group, Ltd. > Master of Business Administration, Fu Jen Catholic University > Chief Financial Officer, Pan Pacific Inc. > Supervisor (Representative), HTC Communication Co., Ltd. > Director (Representative), One & Company Design...

  • Page 29
    ...year will calculated based on last year's actual distribution ratio. Note 5: The number of subscribe shares represented by employee stock warrants (not including the portion already exercised) received by president and vice presidents up to the date of printing of the annual report. Note 6: The 2009...

  • Page 30
    ... (note2) Director * Name Peter Chou Stock Cash Total Employee Profit Sharing Total Employee Profit Sharing Paid to Management Team as a percentage of 2009 net income(%) HTC's compensation policy provides remuneration based on the salary level for a given position within the given market, the...

  • Page 31
    ... timely posts of important information on financial and business matters on the Market Observation Post System, HTC also provides early announcement (on 6th every month) of its monthly revenues, and at the beginning of the month following the end of each quarter, it announces its preliminary revenue...

  • Page 32
    ...Product Warranty Reserve, and License Fee Allowances, will be submitted for review by the supervisors and the CPA in order to ensure that HTC financial statements adequately and reasonably express these factors. HTC's management of possible risk associated with promotion of its global brand business...

  • Page 33
    ... and Tax Planning for New Financial Instruments Professional Development Class for Principal Accounting Officers of Issuers, Securities Firms, and Securities Exchanges (set) Adoption of Extensible Business Reporting Language (XBRL) by Enterprises for Public Announcement of Information Practices and...

  • Page 34
    ... the investment framework in the U.S. Board of directors meeting 2009/11/7 Year 2010 Board of directors meeting 2010/1/26 1. Adopted resolution on setting aside Company's 2010 dividend for employees. 2. Adopted resolution to convene the 2010 Annual General Shareholders Meeting, meeting date, time...

  • Page 35
    ... year up to the date of printing of the annual report, of Persons Connected with The Company's Financial Report (Including The Chairman of The Board of Directors, General Manager, Principal Accounting Officer, and Chief Internal Auditor) : Item Type of personnel changed Date of board meeting Name...

  • Page 36
    ...note 3) Chief Information Officer Chief Innovation Officer Chief Marketing Officer General Counsel Special Assistant to President of Kenny Tseng Engineering and Operation & Acting Head of Procuremen (note 9) Director (note 5) Clement Lin Director (note 4) Edward Wang Director (note 2) Director Joey...

  • Page 37
    ... INFORMATION, IF AMONG THE COMPANY'S 10 LARGEST SHAREHOLDERS ANY ONE IS A RELATED PARTY, AS DEFINED IN THE STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 6. 04/20/2010 Shareholding Name (note 1) Way-Chih Investment Co., LTD. Way-Lien Technology Cher Wang Euro Pacific Growth Fund Special Account...

  • Page 38
    ... work in all areas. > True financial transparency management. > Continuing innovation in products and services to raise customer satisfaction. > Simultaneous attention to shareholder interests, underprivileged groups in society, and support of various public service activities. HTC sets a high...

  • Page 39
    ...has directed its efforts toward employee health care, wellness promotion, health management, and employee assistance programs. HTC also provides excellent services in the form of regular medical check-ups, healthy activities, lectures on health and wellness, testing for those with special conditions...

  • Page 40
    ... participation in the community involved the following public service activities: 1. Continuing support for 200 children from low-income households in Haiti and the Republic of Ghana for the fifth consecutive year in cooperation with World Vision Taiwan.(2004~2009) Continuing support for 89 children...

  • Page 41
    ...-Lien Technology Inc. Cher Wang Euro Pacific Growth Fund Special Account under custodial administration of Chase Manhattan Bank Hon-Mou Investment Co., Ltd. HTC Depositary Receipts Special Account under custodial administration of Citibank N.A. Wen-Chi Chen Capital Revenue Founder Company Investment...

  • Page 42
    ... approved by the board of directors is the same as the Company's accrued expenses in the financial reporting period. For employee stock bonuses NT$1,943,694, the number of shares shall be calculated based on the closing price one day prior to the 2010 annual general shareholders' meeting on an ex...

  • Page 43
    ... annual report, the board of directors has adopted a resolution approving a merger, acquisition, or issuance of new shares due to acquisition of shares of other companies: None Terms & conditions in the deposit agreement & custody agreement Closing price per GDR 2009 High Low Average Closing price...

  • Page 44
    VI. FINANCIAL STATUS, OPERATING RESULTS AND RISK MANAGEMENT

  • Page 45
    ... enhance long-term, sustained business operations. (2) Purchase / Installation of Equipment and Facilities: Replacement / upgrade of equipment and facilities is essential to raising productivity and reducing overall costs of doing business, and to supporting HTC's market share and operating profit...

  • Page 46
    ... value of products, enhancing the convenience of product user interfaces, strengthening customer service and increasing overall operational effectiveness. Major investments planned for our main business address the areas of mobile content, communications, mobile and information security, location...

  • Page 47
    ...phone models, the corporation was the first maker in the world to launch an Android-based mobile phone and the first ever to launch a Windows-based mobile phone paired with capacitive (touch screen) technologies. HTC will continue to develop products incorporating the latest application technologies...

  • Page 48
    ... Securities Firms, and Securities Exchanges (set), Adoption of Extensible Business Reporting Language (XBRL) by Enterprises for Public Announcement of Information - Practices and Best Execution Policies, The Functions and Authority of (the Board of) Directors and Supervisors under Corporate...

  • Page 49
    ...HTC Affiliated Companies Chart ( As of 2009.12.31 ) > HTC ila (Tha nd.) mpu Lim ited imi K.) L ted 99.9 9% > Hig h ( Co Tech ter ( H. > HTC alia Austr and N ew Z ea PTY land) LTD 1 00.0 0% 99.9 9% Mutually Invested Companies: None > HTC...u) 10 0.00 % > High Te 100 .00% > ...

  • Page 50
    ...related technologies and after services Global investing activities Product design and the manufacturing, wholesaling and retailing of electronic parts and components Import of controlled telecommunications radio frequency devices and information software services Global investing activities General...

  • Page 51
    ...04% Title Name Shares (Investment Amount) % (Investment Holding %) (6) Operational Highlights of HTC Affiliated Companies Unit: NT$ thousands, except EPS(NT$) Company Investor: HTC Corporation Investee: H.T.C. (B.V.I.) Corp. BandRich Inc. Communication Global Certification Inc. High Tech Computer...

  • Page 52
    ... number of students each year. We participate actively in job fairs and recruitment events in Taiwan and abroad as part of ongoing, organized efforts to tap the best talent available. 2. Employee Development HTC operates a workplace environment highly conducive to learning and professional growth...

  • Page 53
    ...management and personal development curricula (including language training and new staff orientation) to help employees diversify their skill sets, explore new potentials and deepen expertise. HTC has also launched a dedicated new e-Learning platform able to deliver a diverse range of learning tools...

  • Page 54
    2 O O 9 H T C A N N U A L R E P O R T

  • Page 55
    ... 5. CONSOLIDATED REPORT ...54 6. THE COMPANY SHOULD DISCLOSE THE FINANCIAL IMPACT TO THE COMPANY IF THE COMPANY AND ITS AFFILIATED COMPANIES HAVE INCURRED ANY FINANCIAL OR CASH FLOW DIFFICULTIES IN 2009 ...67 7. OTHER MATTERS REQUIRING SUPPLEMENTARY EXPLANATION ...93 APPENDIX: HTC's Code of Conduct...

  • Page 56
    ... Before Appropriation After Appropriation Unrealized Loss On Financial Instruments Cumulative Translation Adjustments Net Loss Not Recognized As Pension Cost Treasury Stock Total Stockholders¶ Equity After Appropriation *Subject to change after shareholders' meeting resolution As of 2010.3.31...

  • Page 57
    ...,944 14.85 Note 1: In accordance with 2008 and 2009 financial reporting requirements, write-downs of inventories or reversal of write-downs and product warranty costs registered during the period 2005 to 2007 have been reclassified as cost of revenues items. Note 2: Included employee bonus expenses...

  • Page 58
    ... smart phone operating systems, HTC revenue during 2009 represented a decrease from 2008. Coupled with the aggressive brand promotion campaign run through the year, the net profit for 2009 stood at 27% less than that achieved during the previous year. Return on total assets (ROA) and return on...

  • Page 59
    ... general economic conditions and different growth tracks for various smart phone operating systems, HTC and its subsidies revenue during 2009 represented a decrease from 2008. Coupled with the aggressive brand promotion campaign run through the year, the net income attribute to parent company...

  • Page 60
    ... financial position of HTC Corporation as of December 31, 2008 and 2009, and the results of its operations and its cash flows for the years then ended, in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, requirements of the Business Accounting Law...

  • Page 61
    ... 3)  CURRENT ASSETS Cash and cash equivalents (Notes 2 and 5) Financial assets at fair value through profit or loss (Notes 2, 6 and 24) Available-for-sale financial assets - current (Notes 2 and 7) Notes and accounts receivable, net (Notes 2 and 8) Accounts receivable from related parties, net...

  • Page 62
    ...,QIRUPDWLRQ HTC CORPORATION STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, 2008 AND 2009 (In Thousands, Except Earnings Per Share) 2008 NT$ NT$ 2009 US$ (Note 3) BASIC EARNINGS PER SHARE (Note 23) REVENUES (Notes 2 and 25) COST OF REVENUES (Notes 4, 21 and 25) GROSS PROFIT UNREALIZED PROFIT FROM...

  • Page 63
    ... HTC CORPORATION STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY YEARS ENDED DECEMBER 31, 2007, 2008 AND 2009 (In Thousands) Capital Stock New Taiwan Dollars BALANCE, JANUARY 1, 2008 Appropriation of the 2007 net earnings Legal reserve Stock dividends Transfer of employee bonuses to common stock...

  • Page 64
    ... employees of subsidiaries Impairment loss Deferred income tax assets Prepaid pension costs Net changes in operating assets and liabilities Financial instruments at fair value through profit or loss Notes and accounts receivable Accounts receivable from related parties Other current financial assets...

  • Page 65
    ... as follows: Publicly traded stocks - at closing prices; open-end mutual funds - at net asset values; bonds - at prices quoted by the Taiwan GreTai Securities Market; and financial assets and financial liabilities without quoted prices in an active market - at values determined using valuation...

  • Page 66
    ...¶s newly issued shares at a percentage different from its percentage of ownership in the investee, the Company records the change in its equity in the investee¶s net assets as an a. The bond investments have not been designated as at fair value through profit or loss. b. The bond investments have...

  • Page 67
    .... 39 - ³Share-based Payment.´ Except as mentioned above, this accounting change had no material effect on the Company¶s financial statements as of and for the year ended December 31, 2008. c. SFAS No. 10 - ³Inventories´ Financial assets and liabilities at fair value through profit or loss as of...

  • Page 68
    ...did not meet the criteria for hedge accounting under Statement of Financial Accounting Standards No. 34 - ³Financial Instruments: Recognition and Measurement.´ Thus, the Company had no hedge accounting in 2008 and 2009. Outstanding forward exchange contracts as of Other current financial assets as...

  • Page 69
    ... 2009 was less than its carrying amount and thus recognized an impairment loss of NT$30,944 thousand (US$967 thousand). Carrying Value NT$ Equity method H.T.C. (B.V.I.) Corp. BandRich Inc. HTC HK, Limited Communication Global High Tech Computer Asia Pacific Vitamin D Inc. HTC Investment Corporation...

  • Page 70
    ... of by December 20, 2009. The Company should pay the remaining 20% purchase price after completing the land transfer registration. In December 2008, the Company's board of directors resolved to participate in the third auction held by Taiwan Financial Asset Service Corporation (TFASC) and acquired...

  • Page 71
    .... The Company is still negotiating with the customer to resolve this issue. Based on the Statement of Financial Accounting Standards No. 18 "Accounting for Pensions," issued by the Accounting Research and Development Foundation of the ROC, pension cost under a defined benefit pension plan should be...

  • Page 72
    ... value. As part of a high-technology industry and a growing enterprise, the Company considers its operating environment, industry developments, and long-term interests of stockholders as well as its programs to maintain operating efficiency and meet its capital expenditure budget and financial...

  • Page 73
    ...July 31, 2009, the Company's board of directors passed a resolution to buy back 13,000 thousand Company shares from the open market. The repurchase period was between August 3, 2009 and October 2, 2009, and the repurchase price ranged from NT$300 to NT$500 per share. If the Company's share price was...

  • Page 74
    ... number of shares outstanding was adjusted retroactively for the effect of stock dividend distribution in 2009. amount of tax credits that can be carried forward for four years, based on the Company's financial forecasts. The Accounting Research and Development Foundation issued Interpretation...

  • Page 75
    ... with information that market participants would use in setting a price for these securities. Financial assets carried at cost are investments in unquoted shares, which have no quoted prices in an active market and entail an unreasonably high cost to obtain verifiable fair values. Therefore...

  • Page 76
    ...723 1,089 626 302 6 635 106,337 2009 % to Total Revenues 1 1 - 2 The selling prices and collection terms for products sold to related parties were similar to those for sales to third parties, except those for HTC America Inc., HTC Europe Co., and Employees' Welfare Committee.     

  • Page 77
    ... 11,834 792 246 390 70,164 7 1 8  HTC America Inc. HTC NIPPON Corporation One & Company Design, Inc. Communication Global Certification Inc HTC India Private Limited Others $ $ Accounts Receivable NT$ Amount US$(Note 3) 2009 % to Total Accounts Receivable Related Party Amount NT$ 24,249 13,412 24...

  • Page 78
    ... the related parties. Service and Marketing Fees 2008 % to Total Related Party Amount NT$ HTC America Inc. HTC NIPPON Corporation Communication Global Certification Inc. HTC Brasil High Tech Computer Singapore Pte. Ltd. One & Company Design, Inc. HTC Europe Co., Ltd. HTC Belgium BVBA/SPRL High Tech...

  • Page 79
    ... for Social Welfare Charity High Tech Computer Foundation. $ 300,000 20,000 located near the Company in Taoyuan, and the land price was based on appraisal reports. It will be used to expand factory area. In 2008 and 2009, the Company sold equipment to HTC Corporation (Shanghai WGQ) for NT...

  • Page 80
    ... Agreements  To enhance the quality of its products and manufacturing technologies, the Company has patent agreements as follows: Contractor Microsoft Contract Term February 1, 2009 - January 31, 2011 Description Authorization to use embedded operating system; royalty payment based on agreement...

  • Page 81
    ... >The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles  The Board of Directors and Stockholders HTC Corporation and practices generally accepted in the...

  • Page 82
    ... HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2008 and 2009 (In Thousands, Except Par Value) ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 2 and 5) Financial assets at fair value through profit or loss (Notes 2, 6 and 26) Available-for-sale financial assets...

  • Page 83
    ... HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, 2008 AND 2009 (In Thousands, Except Earnings Per Share) 2008 2009 US$ NT$ REVENUES (Notes 2 and 27) COST OF REVENUES (Notes 4, 10, 23 and 27) GROSS PROFIT OPERATING EXPENSES (Notes 23 and 27) Selling and...

  • Page 84
    ... EQUITY  YEARS ENDED DECEMBER 31, 2008 AND 2009 (In Thousands) Capital Stock Issued and Outstanding Common New Taiwan Dollars BALANCE, JANUARY 1, 2008 Appropriation of the 2007 net earnings Legal reserve Stock dividends Transfer of employee bonuses to common stock Employee bonuses Cash dividends...

  • Page 85
    ... loss Loss on equity-method investments Deferred income tax assets Prepaid pension cost Net changes in operating assets and liabilities Financial instruments at fair value through profit or loss Notes and accounts receivable Other current financial assets Inventories Prepayments Other current assets...

  • Page 86
    ... Investment Corporation PT. High Tech Computer Indonesia HTC I Investment Corporation HTC Holding Cooperatief U.A. HTC America Inc. Testing and certification services Global investing activities General investing activities Marketing, distribution and after-sales service General investing activities...

  • Page 87
    ... as follows: Publicly traded stocks - at closing prices; open-end mutual funds - at net asset values; bonds - at prices quoted by the Taiwan GreTai Securities Market; and financial assets and financial liabilities without quoted prices in an active market - at values determined using valuation...

  • Page 88
    ... does not relate to an asset or liability in the financial statements, then it is classified as either current or noncurrent based on the expected length of time before it is realized or settled. Tax credits for purchases of machinery, equipment and technology, research and development expenditures...

  • Page 89
    ... recorded as cost of goods sold for the period. This accounting change had no material effect on the Company's financial statements as of and for the year ended December 31, 2008. For an enhanced presentation of product-related costs, the cost of revenues consists of costs of goods sold, unallocated...

  • Page 90
    ... not carried at fair value because their fair value could not be reliably measured; thus, the Company accounted for these investments by the cost method. 13. BOND INVESTMENTS NOT QUOTED IN AN ACTIVE MARKET The Company bought a 12-month bond issued by Vitamin D Inc. with 6% annual interest for NT$33...

  • Page 91
    .... maintenance Research and development Pension cost Freight Travel Others The Company provides warranty service for one to two years depending on the contract with our customers. The warranty liability is estimated based on management's evaluation of the products under warranty and recognized...

  • Page 92
    ... 2009. Based on the Statement of Financial Accounting Standards No. 18 - "Accounting for Pensions" issued by the Accounting Research and Development Foundation of the ROC, pension cost under a defined benefit pension plan should be calculated by the actuarial method. The Company's net pension costs...

  • Page 93
    ... Post System on the Web site. 22. TREASURY STOCK On October 7, 2008, the Company's board of directors passed a resolution to buy back 10,000 thousand company shares from the open market. The repurchase period was between October 8, 2008 and December 7, 2008, and the repurchase price ranged from...

  • Page 94
    ... the Statute for Upgrading Industries, HTC was granted exemption from corporate income tax as follows: Based on the Securities and Exchange Act of the ROC, the number of reacquired shares should not exceed 10% of the Company's issued and outstanding stocks, and the total purchase amount should not...

  • Page 95
    ...Assets (Liabilities) US$ (Note 3) Temporary differences HTC Corporation BandRich Inc. Communication Global Certification Inc. HTC Investment Corporation HTC I Investment Corporation High Tech Computer Asia Pacific Pte. Ltd. HTC America Inc. HTC EUROPE CO., LTD. Exedea Inc. HTC NIPPON Corporation HTC...

  • Page 96
    ...for the year ended December 31, 2008 were calculated after the average number of shares outstanding was adjusted retroactively for the effect of stock dividend distribution in 2009. The Accounting Research and Development Foundation issued Interpretation 2007-052 that requires companies to recognize...

  • Page 97
    ... value through profit or loss and available-for-sale financial assets are based on quoted market prices in an active market, and their fair values can be reliably measured. If the securities do not have market prices, fair value is measured on the basis of financial or other information. The Company...

  • Page 98
    ...3) $ 13 3 1 17 2009 % to Total Other Payables - The selling prices and collection terms for products sold to related parties were similar to those for sales to third parties, except those for Employees' Welfare Committee. Accounts Receivable 2008 % to Total Notes and Accounts Receivable $ NT$ 506...

  • Page 99
    ... 2009, the Company acquired land from a related party, Syuda Construction Company, for NT$791,910 thousand (US$24,620 thousand). It was about 39 thousand square meters, located near the Company in Taoyuan, and the land price was based on appraisal reports. It will be used to expand factory area...

  • Page 100
    ... The financial products whose change in fair value is recognized in earnings are forward foreign exchange contracts. Because of the small differences in buying prices, selling prices, and mid-market prices, estimated fair value for outstanding contracts at period end is generally based on the public...

  • Page 101
    ...: 1.Business plans, manufacturing and marketing plans, procurement plans, product roadmaps, product design records, product test plans and reports, product software and source codes, product pricing, product appearance, product specifications, tooling specifications, personnel information, financial...

  • Page 102
    ... the names of people with whom they have personal relationships, to engage in business ventures the same as or similar to HTC or to invest exceeding five percent of total market value in such a company. Employees are also prohibited from use so-called "Inside Information" to gain personal profit or...