HTC 2015 Annual Report Download - page 7

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Letter to HTC shareholders
Letter to HTC shareholders
10
11
Financial Performance
HTC saw a significant increase in complexity of the business in 2015 due to the diversification
into virtual reality and connected devices. The extensive review of company structure, process-
es and operations over 2015 helped to realign resources and provide greater focus for innova-
tion.InAugust,weannouncedastrategicrealignment,thecreationofnewbusinessunitsanda
comprehensiveprogramofoperatingexpenditurerationalizationandreductionofupto35%in
order to prepare the business for current and planned operations. This sizeable restructuring is
expectedtocompletebytheendof3Q16.Asaresult,HTCpostedfull-yearconsolidatedrev-
enues of NT$ 121.7 billion, with consolidated gross profit of NT$ 22.0 billion. Consolidated gross
marginswere18.0%,whileoperatingmarginsdecreasedto-11.7%.Netprotaftertaxstoodat
-NT$15.5billion,whichequatestoafull-yearlosspershare(LPS)ofNT$18.79.
We are looking forward to reaping the benefits of the realignment exercise going forward, while
at the same time anticipating material contributions from the new product areas of virtual real-
ity and connected devices.
Brand
In2015,weredenedourbrandpromiseasthePursuitofBrilliance,notonlyasourcorporate
ethos to pursue brilliance in everything we do, but in the creation of beautiful, intuitive and
highly functional products that enable our customers to share their ambitions and pursue their
own brilliance. HTC strives every day to bring the very best design and technology to people, to
enable them to live their lives better and to bring value to society.
Our vision remains to foster human connectiveness, to bring people closer together, and to
enable people around the world access to the digital universe of information, education, enter-
tainment and experiences. Our brand represents the resonance, meaning and promise to our
customers, partners and employees, and the pursuit of brilliance is the key driver behind all of
ourinnovation.Ifweunitebehindthisvision,ourbeliefwillberewardedintheyearsaheadas
HTC rises again to pioneer new markets and new experiences.
Social Responsibility
HTC has long held that as a company our responsibility goes beyond creating the most inno-
vativeproducts.Ineveryaspectofouroperations,westrivetoimproveourselvesthrougha
comprehensive program of initiatives to minimize our environmental impact and add value to
society.
HTC’s standard smartphone retail box primarily comprises fast-renewable material, while its
light weight reduces its transhipment carbon footprint; in 2015 we added a certification on the
box to alert consumers to environmental awareness. On the manufacturing side, HTC continues
topromoteenergymanagement,withsavingsinelectricityuseupto25%andatotalreduc-
tionincarbonemissionsof11.6millionkgofCO2e,equatingtoareductioningreenhousegas
emissionsupto26%.Wecontinuetoseekwaystoimproveourproductionprocesses,fromraw
material sourcing right through to retail delivery, to contribute to improving the environment.
The HTC Foundation also had a busy year, supporting schools and teachers in Taiwan through
courses to help children and youngsters develop good character and motivation.
Throughout all of our operations and partnerships, HTC seeks to ensure the highest standards
of environmental concern as well as quality, consistency and performance, in line with our
brand promise to pursue brilliance in all aspects of our business.
HTC Corporation
Chairwoman and CEO