HTC 2014 Annual Report Download - page 133

• Financial information Financial information •
262 263
Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Company’s capital. Legal reserve may be
used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s capital, the excess may be
transferred to capital or distributed in cash.
The loss off-setting for 2013 and appropriations of 2012 earnings had been approved in the shareholders’ meetings on June 19, 2014 and
June 21, 2013, respectively. The appropriations and dividends per share were as follows:
(The Loss Off-setting)
Appropriation of Earnings Dividends Per Share (NT$)
For 2013 For 2012 For 2013 For 2012
Legal reserve $- $ 1,678,096 $- $-
Special reserve (reversal) (854,138) 854,138 - -
Cash dividends - 1,662,455 - 2
Stock dividends - - - -
No employee bonus was estimated as the Company reported net loss for the year ended December 31, 2013. The bonus to employees for
2012 was approved in the shareholders’ meetings on June 21, 2013. The amounts of bonus were as follows:
Amounts Approved in Shareholders’ Meetings Amounts Recognized in Financial Statements
For 2012 Cash
Stock
$ 976,327
-
$ 976,327 $ 976,327
The approved amounts of bonus to employees were the same as the accrual amounts recognized in the financial statements for 2012.
Information on the earnings appropriation proposed by the Company’s board of directors and approved by the Company’s shareholders
is available on the Market Observation Post System website of the Taiwan Stock Exchange.
Other Equity
December 31
2014 2013
Exchange differences on translating foreign operations
Unrealized losses on available-for-sale financial assets
Unearned employee benefit
$ 1,462,855
(2,167)
(398,570)
$ 559,719
(2,021)
-
$ 1,062,118 $ 557,698
a. Exchange differences on translating foreign operations
Exchange differences relating to the translation of the results and net assets of the Company’s foreign operations from
their functional currencies to the Company’s presentation currency (New Taiwan dollars) were recognized directly in other
comprehensive income and accumulated in the foreign currency translation reserve. Exchange differences previously accumulated
in the foreign currency translation reserve were reclassified to profit or loss on the disposal of the foreign operation.
b. Unrealized gains or losses on available-for-sale financial assets
Unrealized gains or losses on available-for-sale financial assets represents the cumulative gains and losses arising on the
revaluation of AFS financial assets that have been recognized in other comprehensive income, net of amounts reclassified to profit
or loss when those assets have been disposed of or are determined to be impaired.
c. Unearned employee benefit
In the meeting of shareholders on June 19, 2014, the shareholders approved a restricted stock plan for employees. Refer to Note 26
for the information of restricted shares issued.
For the Year Ended December 31
2014 2013
Balance, beginning of the year
Issuance of shares
Share-based payment expenses recognized
$ -
(443,855)
45,285
$ -
-
-
Balance, end of the year $ (398,570) $ -
Treasury Shares
On August 2, 2013, the Company’s board of directors passed a resolution to buy back 15,000 thousand Company shares from the open
market. The repurchase period was between August 5, 2013 and October 4, 2013, and the repurchase price ranged from NT$140 to
NT$290 per share. If the Company’s share price is lower than this price range, the Company may continue to buy back its shares.
The Company had bought back 7,789 thousand shares for NT$1,033,846 thousand during the repurchase period, which retired by the
Company’s board of directors on November 5, 2013.
The Company had repurchased company shares from the open market for transferring to employees and some of them had not been
transferred before the expiry time. The Board of Directors approved the retirement of 1,999 thousand, 10,000 thousand and 1,912
thousand treasury stocks in February and October 2014 and September 2013, respectively. The related information on the treasury
stock transactions was as follows:
(In Thousands of Shares)
Reason to Reacquire
Number of Shares,
Beginning of Year
Addition During the
Year
Reduction During
the Year
Number of Shares,
End of Year
For 2014
To transfer shares to the Company’s employees 18,913 - 11,999 6,914
For 2013
To transfer shares to the Company’s employees 20,825 - 1,912 18,913
To maintain the Company’s credibility and stockholders’
interest - 7,789 7,789 -
20,825 7,789 9,701 18,913
Based on the Securities and Exchange Act of the ROC, the number of reacquired shares should not exceed 10% of a company’s issued
and outstanding shares, and the total purchase amount should not exceed the sum of the retained earnings, additional paid-in capital in
excess of par and realized capital surplus.
Under the Securities and Exchange Act, HTC shall neither pledge treasury shares nor exercise shareholders’ rights on these shares,
such as rights to dividends and to vote.
22. REVENUE
For the Year Ended December 31
2014 2013
Sale of goods
Other operating income
$ 184,929,230
2,981,970
$ 200,208,038
3,194,610
$ 187,911,200 $ 203,402,648