HTC Investors

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Announcement of increasing the capital of HTC Asia Pacific PTE. Ltd. by USD 5,040,996 in order to obtain Wei-Hon Electronics (Shanghai) Ltd.
1.Date of occurrence of the event: 2008/01/18
2.Method of the present increase (decrease) in investment:
To increase the capital of HTC Asia Pacific PTE. Ltd. by USD 5,040,996 in order to obtain Wei-Hon Electronics (Shanghai) Ltd.Which is 100% owned by Landtek Corporation (BVI), a related party of HTC, is submitted for resolution. 
3.Transaction volume, price per unit, and total monetary amount of the transaction: USD5,040,996
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: USD5,040,996 
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: Landtek Corporation (BVI) 
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:
(1) For tax planning purposes, HTC will increase the capital of HTC Asia Pacific PTE. Ltd. by USD 5,040,996 in order to obtain Wei-Hon Electronics (Shanghai) Ltd., which is 100% owned by Landtek Corporation (BVI). HTC Asia Pacific will, through Wei-Hon, obtain the right to use the land located in the Shanghai Nan-Hui Kangqiao Industrial Park and thus benefit from the preferential tax treaty between Singapore and the People's Republic of China.
(2) The identity of the previous owner (including its relationship with the company and the trading counterpart), the date of transfer, and the price: None 
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: HTC's payment of USD 5,040,996 for the transaction shall be subject to MOEA's approval and Wei-Hon acquires the right to use the land on or before June 30, 2008. 
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 Jan 18,2008 
18.Broker: N/A 
19.Concrete purpose of the acquisition or disposal: For the purpose of constructing the company's factory in Shanghai. 
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: USD22,240,996 
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: 12.54% 
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: 0.94% 
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: 1.56% 
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: 6.71% 
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: 0.50% 
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: 0.83% 
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 NTD 7,742 Thousands for 2004.
To recognize investment losses NTD38,593 Thousands for 2005.
To recognize investment losses NTD59,196 Thousands for 2006. 
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: N/A 
32.Any other matters that need to be specified: N/A