HTC 2012 Annual Report Download - page 93

Download and view the complete annual report

Please find page 93 of the 2012 HTC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

Related Party Relationship with the Company
HTC Investment Corporation Subsidiary
HTC I Investment Corporation Subsidiary
HTC Investment One (BVI) Corp. Subsidiary
FunStream Corporation Subsidiary
High Tech Computer Corp. (Suzhou) Subsidiary of H.T.C. (B.V.I.) Corp.
Exedea Inc. Subsidiary of H.T.C. (B.V.I.) Corp.
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 Philippines Corporation Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
PT. High Tech Computer Indonesia Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC (Thailand) Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC India Private Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Malaysia Sdn. Bhd. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Innovation Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Communication Co., Ltd. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC HK, Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Holding Cooperatief U.A. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Communication Technologies (SH) Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
S3 Graphics Co., Ltd. Subsidiary of HTC Investment One (BVI) Corp.
Yoda Co., Ltd. Subsidiary of HTC Investment Corporation
HTC Corporation (Shanghai WGQ) Subsidiary of HTC HK, Limited.
HTC Electronics (Shanghai) Co., Ltd. Subsidiary of HTC HK, Limited.
HTC Netherlands B.V. Subsidiary of HTC Holding Cooperatief U.A.
HTC EUROPE CO., LTD. Subsidiary of HTC Netherlands B.V.
HTC BRASIL Subsidiary of HTC Netherlands B.V.
HTC Belgium BVBA/SPRL Subsidiary of HTC Netherlands B.V.
HTC NIPPON Corporation Subsidiary of HTC Netherlands B.V.
HTC FRANCE CORPORATION Subsidiary of HTC Netherlands B.V.
HTC South Eastern Europe Limited liability
Company Subsidiary of HTC Netherlands B.V.
HTC Nordic ApS. Subsidiary of HTC Netherlands B.V.
HTC Italia SRL Subsidiary of HTC Netherlands B.V.
HTC Germany GmbH. Subsidiary of HTC Netherlands B.V.
HTC Iberia S.L. Subsidiary of HTC Netherlands B.V.
HTC Poland sp. z o.o. Subsidiary of HTC Netherlands B.V.
Saffron Media Group Ltd. Subsidiary of HTC Netherlands B.V.
HTC Communication Canada, Ltd. Subsidiary of HTC Netherlands B.V.
HTC Luxembourg S.a.r.l. Subsidiary of HTC Netherlands B.V.
HTC Norway AS Subsidiary of HTC Netherlands B.V.
HTC Russia LLC Subsidiary of HTC Netherlands B.V.
HTC Communication Sweden AB Subsidiary of HTC Netherlands B.V.
HTC Middle East FZ-LLC Subsidiary of HTC Netherlands B.V.
HTC America Holding Inc. Subsidiary of HTC EUROPE CO., LTD.
ABAXIA SAS Subsidiary of HTC France Corporation
HTC America Inc. Subsidiary of HTC America Holding Inc.
One & Company Design Inc. Subsidiary of HTC America Holding Inc.
HTC America Innovation Inc. Subsidiary of HTC America Holding Inc.
HTC America Content Services, Inc. Subsidiary of HTC America Holding Inc.
Dashwire, Inc. Subsidiary of HTC America Holding Inc.
Inquisitive Minds, Inc. Subsidiary of HTC America Holding Inc.
Beats Electronics, LLC
Investment received in October 2011. The Company lost control of the subsidiary in
August 2012 due to the partial disposal of its shares but continued to account for the
investment by the equity method.
HTC BLR Subsidiary of ABAXIA SAS
Saffron Digital Ltd. Subsidiary of Saffron Media Group Ltd.
Saffron Digital Inc. Subsidiary of Saffron Media Group Ltd.
(Concluded)
4. Financial Risks
(1) Market risk
The Company uses forward exchange contracts for hedging purposes, i.e., to reduce any adverse effect of exchange
rate fluctuations of accounts receivable/payable. The gains on these contracts compensate for the losses on the
hedged items and vice versa. Thus, market risk is not material.
(2) Credit risk
Credit risk represents the potential loss that would be incurred by the Company if the counter-parties breach
contracts. Some factors affecting credit risk are credit risk concentration, components of financial assets and the
amounts of contracts. The counter-parties to the foregoing financial instruments are reputable financial institutions
and business organizations. Thus, credit risk is not expected to be material.
(3) Liquidity risk
The Company's operating funds are deemed sufficient to meet the cash flow demand; thus, liquidity risk is not
considered significant.
Under the regulations of the Securities and Futures Bureau, an entity should disclose its investees' derivative
transactions. For the Company, the objective of an indirect subsidiary's using derivative contracts is to hedge
exchange rate fluctuation risks. However, since the indirect subsidiary's derivative contracts did not meet the criteria
for hedge accounting, these contracts were classified as financial assets or financial liabilities held for trading. The
fair values of these derivatives were determined using valuation techniques incorporating certain estimates, and
changes in fair value of these derivatives were recognized directly in profit or loss for the period. Other information
on the derivative contracts that the subsidiary entered into are briefly disclosed as follows:
Saron Digital Ltd.
A subsidiary of the Company acquired Saffron Digital Ltd. ("Saffron") in January 2011. Saffron used forward
exchange contracts and had settled these contracts as of December 31, 2011. The realized settlement loss on these
contracts was NT$1,074 thousand.
26. RELATED-PARTY TRANSACTIONS
1. The related parties were as follows:
Related Party Relationship with the Company
Xander International Corp. Chairperson is an immediate relative of the Company's chairperson
VIA Technologies, Inc. Same chairperson
Chander Electronics Corp. Same chairperson
Way-Lien Technology Co., Ltd Significant stockholder of the Company
Captec Partners Management Corp. Main director is the chairperson of the Company
WTI Investment International, Ltd. Its significant stockholder in substance is the Company's chairperson
VIABASE CO., LTD. Chairperson of its parent company is the same as the Company's
Faith Hope & Love Limited Its significant stockholder in substance is the Company's chairperson
Wozai Information Technology (Beijing), LLC Its significant stockholder in substance is the Company's chairperson
Openmoko, Inc. Its significant stockholder in substance is the Company's chairperson
VIA Telecom Company Limited Its significant stockholder in substance is the Company's chairperson
Employees' Welfare Committee Employees' Welfare Committee of the Company
HTC Cultural and Educational Foundation A non-profit organization with over one third of its total funds donated by the Company
HTC Social Welfare and Charity Foundation A non-profit organization with over one third of its total funds donated by the Company
H.T.C. (B.V.I.) Corp. Subsidiary
Communication Global Certification Inc. Subsidiary
High Tech Computer Asia Pacific Pte. Ltd. Subsidiary
(Continued)
1
8
2
8
FINANCIAL INFORMATION
1
8
3
8
FINANCIAL INFORMATION