HTC Investors

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Announcement to increase the capital of HTC Asia Pacific PTE. Ltd for buidling up the factory in Shanghai Nanhui and purchasing equipments.
1.Date of occurrence of the event: 2008/02/27 

2.Method of the present increase (decrease) in investment: In the Board of Directors meeting on July 27, 2007, a resolution was passed for the construction of a factory in Shanghai Kangqiao Industrial Park in Nanhui. The investment capital was set at USD 15.5 million. In order to cope with the changed plan for factory construction, an adjustment of the invested capital was needed. The board of directors meeting resolved that the Chairperson be authorized to set the total invested capital for the construction of factory in Shanghai Kangqiao Industrial Park in Nanhui to be limited within USD 42,959,004. Through an increase in capital of HTC Asia Pacific PTE. Ltd. which will subsequently then be used to increase the capital held in Wei-Hon Electronics (Shanghai) Ltd. by the same amount for factory construction and purchasing equipment. To the date of this proposal, Company has indirectly invested USD 48,000,000 through HTC Asia Pacific PTE. Ltd. in Wei-Hon Electronics (Shanghai) Ltd. for the investment in Shanghai Kangqiao Industrial Park factory construction. 

3.Transaction volume, price per unit, and total monetary amount of the transaction: USD42,959,004 

4.Company name of the invested mainland Chinese company: Wei-Hon Electronics (Shanghai) Ltd. 

5.Paid-in capital of said invested mainland Chinese company: RMB37,415,662(USD 4,950,040) 

6.Amount of new capital increment currently planned by said invested mainland Chinese company:USD42,959,004 

7.Main business items of said invested mainland Chinese company: To research, develop, design, manufacture and fabricate computer, PDA, handset (100% for export) and the components and accessories of the above-mentioned products; To design, develop computer software; to sell own-manufactured products; and to provide related technical consultancies and services. 

8.Type of CPA opinion issued for the financial statement of said invested mainland Chinese company for the most recent fiscal year: Unqualified Opinion 

9.Net worth of said invested mainland Chinese company on the financial statement for the most recent fiscal year: RMB36,822,456(USD5,040,996) 

10.Amount of profit/loss of said invested mainland Chinese company on the financial statement for the most recent fiscal year: Net loss RMB593,206 

11.Amount of actual investment to date in said invested mainland Chinese company: 0 

12.Counterparty to the transaction and its relationship to the Company: N/A 

13.Where the counterparty to the transaction is an actual related party, public announcement shall also be made of the reason for choosing the related party as the counterparty and the identity of the previous owner (including its relationship with the company and the trading counterpart), the date of transfer, and the price: N/A 

14.Where a person who owned the subject matter of the transaction within the past five years has been an actual related party of the company, public announcement shall also be made of the dates and prices of acquisition and disposal by the related party and such party's relationship to the company at those times: N/A 

15.Gain (or loss) on disposal: N/A 

16.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations: Investment will be delivered after the approval of Investment Committee of MOE. 

17.The manner of deciding on this transaction, the reference basis for the decision on price and the decision-making department: It is resolved by the Board Meeting on Feb 27,2008 

18.Broker: N/A 

19.Concrete purpose of the acquisition or disposal: For factory construction and purchasing equipment in Wei-Hon Electronics (Shanghai) Ltd. 

20.Do the directors have any objection to the present transaction: N/A 

21.Total amount of mainland China area investment (including the present investment) approved by the Investment Commission to date: USD65,200,000 

22.Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the paid-in capital on the financial statement for the most recent period:35.21% 

23.Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the total assets on the financial statement for the most recent period: 2.23% 

24.Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the shareholders’ equity on the financial statement for the most recent period: 3.60% 

25.Total amount of actual investment in the mainland China area to date: USD11,900,000 

26.Ratio of the total amount of actual investment in the mainland China area to date to the paid-in capital on the financial statement for the most recent period: 6.43% 

27.Ratio of the total amount of actual investment in the mainland China area to date to the total assets on the financial statement for the most recent period: 0.41% 

28.Ratio of the total amount of actual investment in the mainland China area to date to the shareholders’ equity on the financial statement for the most recent period: 0.66% 

29.Amount of recognized profits and losses on investment in the mainland China area for the most recent three fiscal years:
To recognize investment losses NTD38,593 Thousands for 2005.
To recognize investment losses NTD59,196 Thousands for 2006.
To recognize investment gains NTD24,317 Thousands for 2007. 

30.Amount of profit remitted back to Taiwan for the most recent three fiscal years: None 

31.Has the CPA issued an opinion on the unreasonableness of the price of the current transaction: None 

32.Any other matters that need to be specified: None