HTC 2011 Annual Report Download - page 66

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5. Other Necessary Supplement:
(1) Key Functionalities and Manufacturing Processes for Primary Product Lines:
HTC's primary products are converged devices designed on Android and Windows Phone operating systems (OS). HTC products
support voice communication, mobile Internet, multimedia, global positioning service (GPS), personal data assistant (PDA), e-mail,
instant data search, financial transaction services and other mobile digital services.
The workflow for handheld devices, from R&D through production, is as follows:
(2) Environmental Protection Expenditures
Primary products manufactured by HTC Corporation are smartphones. With regard to production processes, airborne pollutants
are generated only during soldering and solid wastes are generated at various production stages. HTC production processes
generate no wastewater.
HTC places a high priority on effectively managing wastes generated by operations and consistently allocates significant funds
to install and maintain pollution prevention facilities and retain professional staff. HTC provides offsite training for staff to earn
licenses needed to operate installed pollution control equipment. HTC further implements internal training programs and
conducts audits to ensure relevant pollution control mechanisms operate properly and effectively in order to continue reducing
pollution at HTC. HTC regularly contracts with licensed independent inspectors to review its operational environment. Every
audit and inspection of HTC facilities conducted since HTC was founded has confirmed that company operations comply with all
relevant government rules and regulations.
HTC is certified under ISO 14001:2004 environmental management, ISO 14064-1:2006 greenhouse gas emission standards and
ISO50001:2011energy management standard. Certification-mandated procedures and requirements further reduce HTC pollution
emissions and energy consumption and move us forward toward clean production objectives.
1. Losses (including financial compensation) and fines due to pollution incidents from the start of the most
recent fiscal year and as of the date of this annual report:
HTC has never been fined or otherwise penalized for pollution by environmental authorities.
2. Future strategies (inclusive of environmental protection facility improvements) and possible expenditures:
(1) Continue to strengthen operations management in order to comply with government rules / regulations and reduce
accidents, errors and other abnormalities;
(2) Strengthen waste collection and recycling efforts. Encourage resource reuse as part of the effort to achieve waste
reduction targets;
(3) Continue promoting ISO 14001 environmental management, ISO 14064-1 technical and administrative measures and
ISO50001:2011energy management standard to maximize clean production benefits.
Setting Product
Specifications
Software/Hardware
R&D Testing Certification Substrate
Manufacturing
Substrate
Testing
System
Assembly
Finished Product
Testing & Inspection
Finished Product
enters warehouse
Company Capital Stock Assets Liabilities Net Worth Net Sales Income from
Operation
Net Income
(Net of Tax)
EPS
(Net of Tax)
Investee:
Beats Electronics, LLC - 1,863,500 375,263 1,488,237 2,502,456 1,490,099 1,486,961 14,337.68
Inquisitive Minds, Inc. - 78,042 2,231 75,811 3,065 (43,337) (43,345)
(433,450.00)
HTC BLR 154 17,394 4,878 12,516 77,224 3,670 10,840 -
Saffron Digital Ltd. 138,613 318,555 155,005 163,550 388,891 61,214 58,658 0.20
Saffron Digital Inc. 23,012 62,452 48,202 14,250 73,205 105,051 (23,215) (305.46)
Note: Authorized capital and the balance sheet foreign exchange rate is based on the exchange rate on the balance sheet date. The foreign
exchange rate for the income statement is based on the weighted average exchange rate for the given period.
Consolidated Financial Statements of HTC Affiliated Companies
Pursuant to the "Regulations Governing Preparation of Consolidated Business Reports Covering Affiliated Enterprises,
Consolidated Financial Statements Covering Affiliated Enterprises, and Reports on Affiliations" and to Letter No. Taiwan-
Finance-Securities-04448 of the Securities and Futures Commission, Ministry of Finance, HTC shall prepare the affiliates'
consolidated financial statements and issue the declaration of Attachment 1 of that Letter. That declaration has already been
issued by HTC and placed on page 1 of the affiliates' financial statement; please refer to it there.
Affiliates Report
There were no circumstances requiring preparation of an Affiliates Report.
2. Private Placement Securities In 2011 And As Of The Date Of This
Annual Report:
None.
3. Status Of Htc Common Shares And Gdrs Acquired, Disposed Of, And
Held By Subsidiaries In 2011 As Of The Date Of This Annual Report:
None.
4. Any Events In 2011 As Of The Date Of This Annual Report: That
Had Significant Impacts On Shareholders' Right Or Security Prices
As Stated In Item 2 Paragraph 2 Of Article 36 Of Securities And
Exchange Law Of Taiwan:
None.
7
AFFILIATE INFORMATION AND OTHER SPECIAL NOTES
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7
AFFILIATE INFORMATION AND OTHER SPECIAL NOTES
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