HTC 2014 Annual Report Download - page 25

• Business operations Business operations •
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Corporate governance ____
HTC is committed to implementing good governance, effective risk management and information
transparency. HTC policies related to these corporate governance are explained further below:
___ Independent Director Positions Created
In accordance with the Securities and Exchange Law, HTC elected two independent directors at its board
re-elections in 2007, in order to strengthen the independence and functions of Directors and enhance the
operational effectiveness of the Board.
___ 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; independent professional advisors Mr. Wei Ti-Hsiang and Mr. Yeong-Cheng Wu. 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.
___ 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.
___ 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.
___ 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.
viewfinder. In order to keep integral image information, HTC RE™ camera collects more and broader image
information easily through its 16 million pixels image sensor with unique 146°wide angle lens and 1/2.3" and
f2.8 large aperture. More information can be accommodated easily especially in self-timer situation without
worrying about missing important characters and views. In response to a variety of operation scenarios, HTC
RE also provides IPX7 waterproof grade for it to be operated within 1 meter under water. With exclusive
waterproof cover protective kit, the waterproof grade of IPX8 is upgraded to 3 meters, such that HTC RE can
be used in water safely to take interesting vivid pictures. HTC RE can also pair with Android and iOS phones
to stream images and photos to the phone. The user can edit them effortlessly and share by using a single key
through HTC RE App, which is not only a content browser, but also a live viewfinder to map all things seen by
HTC RE . After the pairing of device, all photos and videos will appear on the phone by simply activating HTC
RE App. Furthermore, automatic backup of photos and videos in cloud is available for easy access and sharing
anywhere. Time-lapse video of HTC RE can also be set up using HTC RE App to take professional and amazing
time-lapse videos.
HTC and Google together released Nexus 9 tablet on October 16, 2014. The 8.9" Nexus 9 has a well-sized
2K (2014 x 1536 pixels) IPS display to provide immersive video a 4:3 aspect ratio (length to width ratio) in
conjunction with 7.95 mm ultra thin body thickness together with tone rich HTC BoomSound™ dual front
stereo speakers, so that the user may balance work and entertainment. The attach-to-go, responsive removable
Bluetooth keyboard and protective cover allow you transform Nexus 9 to a portable workstation instantly. In
conjunction with origami-based collapsible and flip-angle seat cover, the integral device integration provides
Nexus 9 with mobility, so that the user can always keep productivity. With the optimal 64-bit NVIDIA Tegra
K1 (dual 2.3 GHz Denver CPU and 192 core Kepler mobile GPU) processor, in conjunction with the always-
on intuitive voice command and globally debuted 64-bit Android Lollipop OS, Nexus 9 has improved both
productivity and tablet operation experience to a completely new level.
HTC continues challenging ourselves to aim higher. Building on the design DNA of its predecessors, the HTC
One M9 combines the antenna and precision of HTC One M7 and the ergonomic curves of HTC One M8 in a
seamless, elegant metal unibody. We achieved an industry first, applying a dual tone, dual finish combination
to the body of our phone. The back panel is brushed with a gorgeous hairline finish, retaining the unique HTC
look, while the sidewalls are polished to perfection with a mirror finish. Staying true to our design philosophy,
we machined this phone from a solid piece of aluminum, to our iconic unibody design. The phone was received
enthusiastically by press and fans. The launch of the HTC One M9, our best smartphone yet, was not the only
exciting news we had to share in Barcelona. We also had some category-defining news to share under our
HTC RE brand umbrella. In partnership with Under Armour, we launched HTC Grip™ , a fitness band that
combines the world's premier connected fitness brand and our design expertise to improve the way you train,
perform and live. HTC also proudly introduced HTC Vive™ , a virtual reality experience the world has never
seen before. Launched in partnership with Valve, the global leader in gaming, we are confident that HTC Vive
will set the new industry standard, bringing consumers the most breathtaking and immersive virtual reality
experience in the world.
R&D Expenditures in Recent Years
Unit: NT$ millions
2014 2013 2015Q1
Worldwide R&D Expenditures 13,047 12,543 3,443
As a Percentage of Worldwide Revenue 7% 6% 8%