HTC 2013 Annual Report Download - page 25

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BUSINESS OPERATIONS BUSINESS OPERATIONS
46 47
control function, double-tapping the screen to wake, take incoming calls, or pressing the volume control
to launch the camera. The new and improved HTC One (M8) incorporates all of these functions without
compromising the battery life. More demanding conditions and specifications extend battery life by 40%
while the extremepower-saving function increases the standby time to two weeks. Even if battery life is
down to 20%, the M8 can still offer 60 hours of standby time. With all of these smart functions, the HTC One
(M8) undoubtedly is the pioneer and undisputed leader for the next generation of smartphone applications
and user experience.
R&D expenditures in recent years
Unit: NT$ millions
2013 2012 2014Q1
Worldwide R&D Expenditures 12,543 15,493 3,007
As a Percentage of Worldwide Revenue 6% 5% 9%
Corporate Governance
HTC is committed to implementing good governance, effective risk management and information
transparency. HTC policies relate to these corporate governance are explained further below:
1. Independent Director positions created
In accordance with the Securities and Exchange Law, starting from 2007, HTC elected two independent
directors each time at its board re-elections, in order to strengthen the independence and functions of
Directors and enhance the operational effectiveness of the Board.
2. Remuneration Committee created
In compliance with the "Regulations Governing the Appointment and Exercise of Powers by the
Remuneration Committee of a Company whose stock is listed on the Stock Exchange or Traded Over-
the-Counter" as per Letter No.1000009747 issued by the Financial Supervisory Commission of the
Executive Yuan on March 18, 2011, the Board of Directors resolved to adopt the Company's Compensation
Committee Charter and the Committee shall consist of three members who are appointed by resolution
of the board of directors. The current second remuneration committee members are independent
director Mr. Chen-Kuo Lin and independent professional advisor Mr. Ti-Hsiang Wei, per the regulation,
the other independent professional advisor will be appointed by the Board by June 18, 2014. The official
functions of the Committee are to professionally and objectively evaluate the policies and systems for
the compensation of HTC directors, supervisors, and managers, and submit recommendations to the
Board of Directors for its reference in decision making.
3. Board of Supervisor proceedings
Meetings of the Board of Supervisors take place every quarter, at which financial, legal, internal audit
and other issues are reported. Issues reviewed by supervisors and certified public accountants include
risk management, intercompany transactions, changes in accounting policies, assessments of IPR
infringement risk, and reasonableness of provision and accrual items to be presented on financial
reports.
4. Disclosure of information & financial forecasts
HTC has been working diligently to enhance the timeliness and transparency of financial disclosures. In
addition to online disclosure of important data related to HTC's business in accordance with regulations,
quarterly earnings calls are held for investors every quarter, at which revenue, margin and expense
forecasts are provided. Investor teleconferences are also held to keep investors updated on the latest
business operations. Apart from regular disclosures, HTC also participates actively in investor forums and
conferences in Taiwan and overseas as well as proactively visits major investment houses and investors
to enhance communication with the investment community.
5. Stable dividend policies
HTC maintains stable dividend policies. Factors considered in determining dividend distributions include
current and future investment environments, capital needs, domestic and international competition,
and budgetary considerations. Shareholder interests and the balance between dividend distributions
vs. longer-term financial planning are also considered. The Board of Directors, in accordance with
regulations, sets a distribution plan each year for submission to shareholders.