HTC 2009 Annual Report Download - page 76

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Major transactions with related parties are summarized below:
Purchases of Inventories and Services
2008 2009
Related Party Amount
% to Total
Net Purchases Amount
% to Total
Net Purchases
NT$ NT$ US$(Note 3)
High Tech Computer Corp. (Suzhou) $ 167,775 - $ 32,361 $ 1,012 -
HTC Electronics (Shanghai) 13,975 - 78,835 2,464 -
Chander Electronics Corp. 19,041 - 28,606 894 -
BandRich Inc. - - 41,318 1,292 -
$ 200,791 - $ 181,120 $ 5,662 -
Terms of payment and purchasing prices for both related and third parties were similar.
Sales and Services Provided
2008 2009
Related Party Amount % to Total Revenues Amount % to Total Revenues
NT$ NT$ US$(Note 3)
Exedea Inc. $ - - $ 1,844,513 $ 57,659 1
HTC America Inc. 1,524,385 2 1,118,794 34,973 1
HTC Europe Co., Ltd. 198,346 - 298,267 9,324 -
High Tech Computer (H.K.) Limited 78,703 - 55,123 1,723 -
High Tech Computer Singapore Pte. Ltd. 59,422 - 34,840 1,089 -
BandRich Inc. 266,166 - 20,028 626 -
Employees Welfare Committee 101,195 - 9,666 302
Xander International Corp. 93,923 - 198 6 -
First International Computer, Inc. (FIC) 24,222 - -- -
Others 17,375 - 20,307 635 -
$ 2,363,737 2 $ 3,401,736 $ 106,337 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.
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As of December 31, 2008 and 2009, financial assets exposed to
cash flow interest rate risk amounted to NT$60,051,748 thousand
and 61,177,848 thousand (US$1,912,405 thousand), respectively.
Financial Risks
a. Market risk
The Company uses derivative contracts for hedging purposes, i.e.,
to reduce any adverse effect of exchange rate fluctuations of
accounts receivable/payable. The gains or losses on these
contracts almost offset the gains or losses on the hedged items.
Thus, market risk is not material.
b. Credit risk
The Company deals only with banks with good credit standing based
on the banks’ reputation and takes into account past experience with
them. Moreover, the Company has a series of control procedures for
derivative transactions. Management believes its exposure to
counter-parties’ default on contracts is low.
c. Cash flow risk
The Company has sufficient working capital to settle derivative
contracts. There are no immediate future cash requirements for
contract settlement.
25. RELATED-PARTY TRANSACTIONS
The related parties were as follows:
Related Party Relationship with the Company
First International Computer, Inc. (FIC) Chairperson is an immediate relative of the Companys chairperson
Xander International Corp. Chairperson is an immediate relative of the Companys chairperson
VIA Technologies, Inc. Same chairperson
Chander Electronics Corp. Same chairperson
Syuda Construction Company The only juridical stockholder whose chairperson is the same person with the Company
Comserve Network Netherlands B.V. Main director is an immediate relative of the Companys chairperson
H.T.C. (B.V.I.) Corp. Subsidiary
BandRich Inc. Subsidiary
Communication Global Certification Inc. Subsidiary
High Tech Computer Asia Pacific Pte. Ltd. Subsidiary
HTC Europe Co., Ltd. Subsidiary of H.T.C. (B.V.I.) Corp.
High Tech Computer Corp. (Suzhou) Subsidiary of H.T.C. (B.V.I.) Corp.
HTC Brasil Subsidiary of H.T.C. (B.V.I.) Corp.
Exedea Inc. Subsidiary of H.T.C. (B.V.I.) Corp.
HTC Nippon Corporation Subsidiary of H.T.C. (B.V.I.) Corp.
HTC HK, Limited. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Belgium BVBA/SPRL Subsidiary of HTC HK, Limited.
HTC Corporation (Shanghai WGQ)
(formerly High Tech Computer Corp. (WGQ) until December 2008)
Subsidiary of HTC HK, Limited.
High Tech Computer Singapore Pte. Ltd. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
High Tech Computer (H.K.) Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC (Australia and New Zealand) Pty. Ltd. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC India Private Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC (Thailand) Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Electronics (Shanghai) Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC America Inc. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
One & Company Design, Inc. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
Employees Welfare Committee Employees Welfare Committee of HTC Corporation
HTC Education Foundation for Social Welfare Charity A non-profit organization of which the funds donated from the Company exceeds one third of
the non-profit organizations total funds
High Tech Computer Foundation A non-profit organization of which the funds donated from the Company exceeds one third of
the non-profit organizations total funds
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