Stock Code: 2324
Compal Electronics, Inc.
2020 Annual Report
Notice to readers
This English version annual report is a translation of the Mandarin version. This document is
created for the sole purpose of the convenience for its non-Mandarin readers and is not an official
document to represent the financial status of the Company per Taiwan law. Should any discrepancy
arise between the English and Mandarin versions, the Mandarin version shall prevail.
Taiwan Stock Exchange Market Observation Post System:
http:/newmops.twse.com.tw
The Company's Annual Report is available at:
http:/www.compal.com
Printed on May 12, 2021
I.
Spokesperson
Spokesperson: Ching-Hsiung Lu/Vice President
Deputy Spokesperson: Cheng-Chiang Wang /Vice President of Accounting Dept.
Tel: 886-2-8797-8588
E-mail: Investor@compal.com
II. Headquarters, Branches and Plant
Headquarters
Address: No.581 and 581-1, Ruiguang Rd., Neihu District, Taipei, Taiwan
Tel: 886-2- 8797-8588
Manufacturing Site
Address: No. 8, South East Rd., Pingzhen City, Taoyuan City
Tel: 886-3-439-1707
III. Share Administration Agency
Chinatrust Transfer Agent
Address: 5F, No. 83, Sec 1, Chung Ching Nan Road, Taipei, Taiwan
Tel: 886-2-6636-5566
Website: https:/www.ctbcbank.com
IV. Auditors
CPA Firm: KPMG Taiwan
Auditors: Chien, Szu Chuan and Au, Yiu Kwan
Address: 68F, No. 7, Sec. 5, Xinyi Road, Taipei, Taiwan
Tel.: 886-2-8101-6666
Website: http:/www.kpmg.com.tw
V. Overseas Securities Exchange
Luxembourg Stock Exchange: http:/www.bourse.lu
London Stock Exchange http:/www.londonstockexchange.com
VI. Corporate Website
http:/www.compal.com
1
Table of Contents
4
I. Letter to Shareholders
II. Company Profile
7
7
2.1 Date of Incorporation
2.2 Company History
III. Corporate Governance Report
3.1 Organization
3.2 Directors, Supervisors and Management Team
3.3 Implementation of Corporate Governance
3.4 Information Regarding the Company’s Audit Fee and Independence
3.5 Replacement of CPA
3.6 If the chairman, president, and financial or accounting manager of the Company had worked
for the accounting firm or related parties thereof in the most recent year
3.7 Changes in Shareholding of Directors, Supervisors, Managers and Major Shareholders
3.8 Relationship among the Top Ten Shareholders
3.9 Ownership of shares in Affiliated Enterprises
IV. Capital Overview
4.1 Capital and Shares
4.2 Bonds
4.3 Preferred shares
4.4 Global Depository Receipts
4.5 Employee Warrants
4.6 Subscription of New Shares by Employees and Restricted Shares
4.7 New Share Issuance in Connection with Mergers and Acquisitions
4.8 Financing Plans and Implementation
9
11
33
90
91
91
92
95
96
98
102
102
103
105
105
105
105
V. Operational Highlights
5.1 Business Activities
5.2 Market and Sales Overview
5.3 Human Resources
5.4 Environmental Protection Expenditure
5.5 Labor Relations
5.6 Important Contracts
106
130
151
152
152
155
2
VI. Financial Information
156
160
166
167
167
167
6.1 Five-Year Financial Summary
6.2 Five-Year Financial Analysis
6.3 Audit Committee’s Report in the Most Recent Year
6.4 Consolidated Financial Statements and Independent Auditors’ Report (Attachment I)
6.5 Parent-Company-Only Financial Statements and Independent Auditors’ Report (Attachment II)
6.6 Status of financial difficulties for the Company and its subsidiaries
VII. Review of Financial Position, Operating Results, and Risk Management
168
169
170
170
171
172
177
7.1 Analysis of Financial Status
7.2 Analysis of Operation Results
7.3 Analysis of Cash Flow
7.4 Major Capital Expenditures
7.5 Investment Policy in Last Year, Main Causes for Profits or Losses, Improvement Plans and
Investment Plans for the Coming Year
7.6 Analysis of Risk Management
7.7 Other material issues
VIII. Special Disclosure
178
207
207
207
207
8.1 Summary of Affiliated Companies
8.2 Private Placement of Securities in the Most Recent Year
8.3 Subsidiaries’ Holding of the Company’s Shares in the Most Recent Year
8.4 Other supplementary notes, where applicable
8.5 Events with Significant Impacts
Attachment
I
II
Consolidated Financial Statements and Independent Auditors’ Report
Parent-Company-Only Financial Statements and Independent Auditors’ Report
3
I. Letter to Shareholders
Dear Shareholders,
As a result of the ongoing COVID-19 pandemic and rising tension in international trade, the macro
environment in 2020 was harsh. Despite the diverse challenges that industrial uncertainties brought to
enterprises, we believe that “the worse moment is also the golden era, and we are the ordinary people in an
extraordinary time,” and our preparedness for the challenges and turning situations into opportunities
matters. With customer trust and all employees and partners' concert efforts, Compal successfully made a
new milestone in 2020 against the unstable macro environment, with financial achievements reaching a new
high over the past nine years, smart manufacturing efficiency continuingly rising, and business making new
progress. Hence, we are presenting to you our financial and operational achievements in 2020 and business
outlook for 2021 as follows:
Financial Performance
In 2020, our consolidated revenue increased by 7% over 2019 to TWD 1,048,929 million, and the total
shipping volume of 5C-related electronic products also increased by 14% and 13 million units over 2019 to
105 million units. Despite the impact of COVID-19 in 1Q20, when both revenue and profit reduced sharply
due to supply chain disruption, through the quick and flexible response, we made further progress in both
management and manufacturing efficiency. After resuming operation, stability regained and procurement
capability enhanced, allowing us to increase profit each quarter and eventually achieve a consolidated
operating profit of TWD 11,493 million and a net operating profit margin of 1.1%, with the amount increased
by 9% over 2019. Although the foreign exchange rate trend was unfavorable to exporters, thanks to the
advanced response and effective hedging, the non-operating profit also increased significantly over 2019.
Hence, the consolidated net income attributed to the parent increased by 35% over 2019 to TWD 9,362
million, with an EPS amounting to TWD 2.15.
Business Development and Smart Manufacturing
Thanks to the rising demand for work from home, distance learning, and distance entertainment as a result
of the COVID-19 pandemic, and alongside the efforts in customer development and technical capacity in
platform development over the years, we could quickly grasp the opportunity of the growth in NB PCs in
2020. We also made further resource investment in technology innovation to develop more hardware and
software solutions, create differences with competitors, and provide customers with higher-value services.
Although the global consumer market was weakened in 2020, we could still make some decent progress in
the business diversification. For example, the shipping volume of servers and smartphones grew more than
double in 2020. In addition, we also officially opened our 5G laboratory to make proactively deployment the
solutions for four major sectors: industry, agriculture, healthcare, and e-sports/entertainment through the
mass production of 5G modules, terminal devices, and small cells to the development of dedicated 5G
enterprise network. In addition, after seven years of effort, our smart medical and healthcare deployment
has become better and fuller. Currently, the deployment has covered seven categories: medical IoT solutions,
4
immunotherapy solutions, AI-assisted healthcare, hospital software systems, chronic disease care, personal
health management, and long-term care. Overall, the non-NB PCs' sales already contributed up to 35% of
the 2020 revenue, one percent more than in 2019.
In smart manufacturing, our efforts in lean programs and production automation projects in recent years
have gradually borne fruit. Besides reducing manufacturing costs, we can quickly respond to the rapidly
changing macro environment and customer demands, further boosting the efficiency in both management
and operations. In manufacturing diversification, the mass production of many products has smoothly
activated as scheduled in Vietnam and Taiwan. We will continue with capacity diversification to provide
customers with more options in production bases and further invest digitization to enhance overall corporate
competitiveness.
Innovation and Sustainability
While pursing business growth, Compal will never forget its business philosophy of “innovation, harmony,
surpassing”, to invest in technology innovation and pursue sustainable business development of the
Company. To pour innovative thinking in Compal’s DNA, internally, every year we encourage employees to
make innovation proposals, present the “Innovation Award”, and listen to and incorporate the creativity and
recommendations of employees in order to create a win-win situation for both the Company and employees;
and externally, we actively participate in international ratings. In 2020, our efforts were recognized again by
many awards from the German “iF Design Award”, and our ranking in global business innovation
competitiveness also rose to the world’s 11th.
Facing the environmental impacts of climate change, we proactively engage in green product design and
plant energy conservation. When the COVID-19 pandemic broke out, we immediately formed an epidemic
response team to reduce the risk of operations and strengthen care for employees. Our emphasis on the
environmental, social, and governance (ESG) earned us a Platinum Award in the Corporate Sustainability
Report Awards from the 2020 Taiwan Corporate Sustainability Awards (TCSA). In addition, in the 2020
Corporate Governance Evaluation of the Taiwan Stock Exchange (TWSE), we were again ranked among the
top 6-20% public companies in Taiwan. Furthermore, we were selected as a constituent of both the
FTSE4GOOD Index and FTSE4GOOD TIP Taiwan ESG Index for years, marking the long-term recognition of
Compal’s sustainable investment value by intuitional investors.
Business Outlook
Looking ahead to 2021, despite the continued dominance of uncertainties in the global economic and
industrial changes, we will hope that the macro environment can progressively recover from the pandemic
to regain stable development. Many industrial research institutions have predicted that the demand for
electronic products will increase in 2021 compared to 2020. By grasping the trend with our steady foundation
developed over the years, we will stay cautiously optimistic to the business development in 2021 and expect
the continuous growth based on the 2020 achievements. Among them, the 5G, auto electronics, and smart
medical and healthcare will be the key focus of Compal’s mid- to long-term development in the future, which
5
will be the main driver to Compal’s non-NB PCs sales contribution to achieve the goal of 40%.
In addition to the topline growth, we will emphasize more on profit growth through the implementation of
various management measures and continuous engagement in automation and digitization achieved by
teamwork and execution of all employees. Increase the Company’s economic value is the ultimate goal,
meanwhile, we will also fulfill our social responsibility as a global corporate citizen to address the expectation
on Compal stakeholders, including shareholders, customers, and business partners.
Once again, here we sincerely appreciate your long-term support and encouragement for Compal. Lastly, we
wish you a peaceful and prosperous year ahead.
Sincerely,
Chairman: Sheng-Hsiung Hsu (Rock Hsu)
CEO: Chung-Pin Wong (Martin Wong)
Head of Accounting: Cheng-Chiang Wang (Jack Wang)
6
II. Company Profile
2.1
Date of Incorporation: June 1, 1984
2.2
Company History
■ Company history in the past two years:
2019
•
•
•
•
•
•
•
•
•
•
•
Won 13 awards at the 2019 “iF design awards” and ranked 17th in iF Global Innovation Companies
Ranking. Ranked World Design Index - TOP 3 Taiwan, Top 10 Asia, Top 10 Computer, and Top 25
Companies 2015~2019.
Selected to take part in the CDP climate change program for five consecutive years (2014-2018) and
received an overall CDP rating of B- at the Management Level for 2018.
Ranked within top the 6%~20% TWSE-listed companies of the “5th Round of Corporate Governance
Evaluations” by TWSE.
Ranked 6th in CommonWealth Magazine’s “Top-2000 Manufacturers", and ranked 62nd in “Cross-
strait Top 1000 Survey."
Won the Platinum Medal of 2019 Taiwan Corporate Sustainability Report Award of TCSA.
Selected into the FTSE4GOOD Index for four consecutive years and in the FTSE4GOOD TIP Taiwan
ESG Index for the second consecutive years.
Ranked 390th on the Fortune Global 500.
Ranked 1463th on Forbes Global 2000.
Top 20 of 2019 Happiness Enterprise online voting by 1111 Human resource agency.
The Company’s share capital reached TWD 44.1 billion in 2019.
The Company earned NTD 980.4 billion in consolidated revenues in 2019.
2020
• Won 18 awards at the 2020 “iF Design Awards” and a third consecutive Gold Award. Ranked 11th in the
iF Global Innovation Companies Ranking.
•
Selected to take part in the CDP climate change program for six consecutive years (2014-2019) and
received an overall CDP rating of B- at the Management Level for 2019.
• Ranked within top the 6%~20% TWSE-listed companies of the “6th Round of Corporate Governance
Evaluations” by TWSE.
• Ranked 44th in Common Wealth Magazine’s “CSR Top 50”.
• Ranked 64th in Common Wealth Magazine’s “Top1000 in China, Taiwan and Hong Kong”, and Kinpo-
Compal group was ranked 4th in Common Wealth magazine’s “Taiwan Top 50 Group”.
• Won the Platinum Medal of 2020 Taiwan Corporate Sustainability report Award of TCSA and the Silver
7
Medal of 2020 English Report Award of TCSA.
•
Selected into the FTSE4GOOD Index for five consecutive years and in the FTSE4GOOD TIP Taiwan ESG
Index for the third consecutive year.
• Ranked 396th on the Fortune Global 500.
• Ranked 1558th on the Forbes Global 2000.
• The Company’s share capital reached NTD 44.1 billion in 2019.
• The Company earned TWD 1,048.9 billion in consolidated revenues in 2020.
2021
•
Selected to take part in the CDP climate change program for 7 consecutive years (2014-2020) and
received an overall CDP rating of B- at the Management Level for 2020.
• Won 25 honors at the 2021 “iF Design Awards” and a fourth consecutive Gold Award. Ranked 6th in
the iF Global Innovation Companies Ranking.
• Ranked among the top 6%-20% in the TWSE-listed companies in the 7th round of "Corporate
Governance Evaluation" organized by Taiwan Stock Exchange and Taipei Exchange.
• Ranked 5th in CommonWealth Magazine’s “Top-2000 Manufacturers"
■ Any changes to the management rights, significant changes of the management mode or business
content, and other important matters that can affect shareholders' equity and their impact on the
Company in the most recent year and up to the date of printing of the annual report: None.
8
3.1
Organization
3.1.1 Organizational Chart (As of Jan 1, 2021)
Shareholders
Board of Directors
President’s Office
Remuneration
Committee
Audit
Committee
Auditing Office
Personnel Evaluation Committee
Top Management Committee
Investment Planning and
Management Office
Legal Affairs Office
Insider Trading Prevention Office
P
C
B
G
1
P
C
B
G
2
P
C
O
B
G
G
O
B
G
S
D
B
G
Digital Transformation Committee
Green Sustainability Office
Corporate Social
Responsibility Office
Occupational Safety and Health
Office
H
R
a
n
d
A
D
M
G
r
o
u
p
F
i
n
a
n
c
i
a
l
G
r
o
u
p
A
c
c
o
u
n
t
i
n
g
G
r
o
u
p
9
3.1.2 Major Corporate Functions
Department
Functions
President’s Office
Responsible for the Company’s operation
Investment Planning and
Management Office
Responsible for investment-related activities
Auditing Office
Conducts internal audits
Legal Affairs Office
Handles the Company’s legal affairs
Green Sustainability Office
Executes “Green Life” projects
Insider Trading Prevention
Office
Implements preventive measures against insider trading
Corporate Social Responsibility
Office
Promotes and executes CSR-related affairs
Occupational Safety and
Health Office
Implementing a comprehensive occupational health and safety program
PCBG 1
PCBG 2
GOBG
SDBG
PCOBG
Responsible for the R&D, production, quality control and the sale of PC products
Responsible for the R&D, production, quality control and the sales of non-
Notebook products.
Responsible for production, quality control, and worldwide operation affairs
Responsible for the R&D, production, quality control, and the sale of smart
devices
Responsible for production and quality control of NB Products
Accounting Group
Handles accounting, share administration, and funding affairs
Financial Group
Responsible for the Company's financial planning, capital scheduling, and
payments controlling.
HR and Administration Group
Responsible for human resource, training, education, employee relations,
general affairs, and building management
10
Directors and Management Team
3.2
3.2.1 Directors
Title
Name/
Nationality/Ge
nder
(Note 1, 2)
Elected
Date
Term
First
Elected
Date
Shareholding as of elected
date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career (academic)
achievements
April 27, 2021
Spouse or relatives of second degree or
closer acting as Directors, Supervisors,
or department heads
Selected
Current
Positions
held
concurrentl
y in the
Company
and/or any
other
companies
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Title
Name
Relationship
1984.04.16
8,975,401
0.20%
8,975,401
0.20%
17,107,025
0.39%
0
0.00%
(Note 5)
Chairman of Kinpo and AcBel
Director
Chieh-Li Hsu
Honorary Doctorate, National
Taiwan Normal University
Director
Sheng-Chieh Hsu
Brothers
father and
son
Chairman
Sheng-Hsiung
Hsu
2018.6.22
Vice Chairman
Jui-Tsung Chen
2018.6.22
Binpal
Investment Co.,
Director
Ltd.
2018.6.22
3
years
3
years
3
years
Representative:
Wen-Being Hsu
Kinpo
Electronics, Inc.
Representative:
Chieh-Li Hsu
Director
2018.6.22
3
years
3
1992.04.30
35,352,587
0.80%
35,352,587
0.80%
1,069,405
0.02%
2018.6.22
5,000,000
0.11%
5,000,000
0.11%
1984.04.16
4,000,000
0.09%
5,000,000
0.11%
1990.06.22
151,628,692
3.43%
151,628,692
3.44%
-
0
-
-
0.00%
-
2020.07.21
4,117,569
0.09%
4,117,569
0.09%
631
0.00%
Director
Charng-Chyi Ko
2018.6.22
years
1984.04.16
7,896,867
0.18%
7,896,867
0.18%
30,645
0.00%
0
0
0
0
0
0
Polytech Inc.
Honorary Doctorate, National
0.00%
Cheng Kung University
Chairman of Arcadyan
Technology Corp.
0.00%
National Tao-Yuan Sr. Vocational
Agricultural and Industrial
School
0.00%
Director of BAOTEK, Inc.
0.00%
0.00%
M.S., International Business,
Waseda University, Japan
Director and President of AcBel
Polytech Inc.
National Taiwan University
College of Management
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
Chairman Sheng-Hsiung Hsu
father and
son
0.00%
PhD, Lincoln University, USA
(Note 5)
N/A
N/A
N/A
Chairman of Taiwan Biotech Co.,
Ltd.
Department of Architecture,
Director
Sheng-Chieh Hsu 2018.6.22
3
1997.05.29
9,119,297
0.21%
9,204,201
0.21%
8,152,928
0.18%
(Note 4)
(Note 4)
Tam-Kang University
(Note 5)
Chairman Sheng-Hsiung Hsu
Brothers
years
Director of Kinpo Electronics Inc.
11
Title
Name/
Nationality/Ge
nder
(Note 1, 2)
Elected
Date
Term
First
Elected
Date
Shareholding as of elected
date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career (academic)
achievements
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
3
Department of Geosciences,
Selected
Current
Positions
held
concurrentl
y in the
Company
and/or any
other
companies
Spouse or relatives of second degree or
closer acting as Directors, Supervisors,
or department heads
Title
Name
Relationship
Director
Yen-Chia Chou
2018.6.22
years
1987.06.13
8,022,874
0.18%
8,022,874
0.18%
2,502,768
0.06%
0
0.00%
National Taiwan University
(Note5)
N/A
N/A
N/A
Director
Chung-Pin Wong
2018.6.22
Director
Chiung-Chi Hsu
2018.6.22
Director
Ming-Chih Chang
2018.6.22
Director
Anthony Peter
Bonadero
2018.6.22
Director
Sheng-Hua Peng
2018.6.22
Independent
Director
Independent
Director
Min-Chih Hsuan
2018.6.22
Duei Tsai
2018.6.22
3
years
3
years
3
years
3
years
3
years
3
years
3
years
2007.06.15
6,618,618
0.15%
6,618,618
0.15%
1,398
0.00%
0
0.00%
Chiao Tung University
(Note 5)
N/A
N/A
N/A
Director of Kinpo Electronics Inc.
Graduate Institute of
Management Science, National
1994.04.23
2,000,731
0.05%
2,117,731
0.05%
30,000
0.00%
2018.6.22
1,919,489
0.04%
1,919,489
0.04%
2018.6.22
0
0.00%
0
0.00%
2018.6.22
835,000
0.02%
835,000
0.02%
2012.6.22
2012.6.22
0
0
0.00%
0.00%
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
0
0
0
0
12
Chairman of Compal Broadband
Networks, Inc.
Master’s Degree, Golden Gate
University, San Francisco, USA
Director of I PAO Bearing Co.,
Ltd.
Master’s degree in San Francisco
0.00%
(Note5)
N/A
N/A
N/A
0.00%
Golden Gate University.
(Note5)
N/A
N/A
N/A
0.00%
Director of Mactech Co., Ltd.
Texas AandM University
EVP of Auscom Engineering Inc.
Graduate Institute of Electronics
Engineering of National Taiwan
(Note 5)
N/A
N/A
N/A
0.00%
University
(Note 5)
N/A
N/A
N/A
Director of Arcadyan Technology
Corp.
Honorary Doctorate, National
0.00%
Chiao Tung University
Chairman and President of
United Microelectronics Corp.
0.00%
PhD, Graduate Institute of
Electrical Engineering, National
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
0
0
0
0
0
0
Title
Name/
Nationality/Ge
nder
(Note 1, 2)
Elected
Date
Term
First
Elected
Date
Shareholding as of elected
date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career (academic)
achievements
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Selected
Current
Positions
held
concurrentl
y in the
Company
and/or any
other
companies
Spouse or relatives of second degree or
closer acting as Directors, Supervisors,
or department heads
Title
Name
Relationship
Independent
Director
Duh-Kung Tsai
2018.6.22
3
years
2012.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
Institute of Technology
(Note 5)
N/A
N/A
N/A
Chairman of Powertech
Technology Inc.
Note: 1. All Directors are male; except for Anthony Peter Bonadero who is a U.S. citizen, the remaining are ROC nationals.
2. The Chairman, Chief Strategy Officer and President of the Company are not the same person, spouses, or related to each other.
3. Change in representative of the Company’s institutional Director of Kinpo Electronics, Inc., and the former Shyh-Yong Shen was re-appointed to Chieh-Li Hsu, on July 21, 2020.
4. Director Sheng-Chieh Hsu held 2,794,000 shares (0.06%) through proxies.
Taiwan University
Minister of Transportation and
Communications R.O.C.
Department of Industrial
Engineering, National Taipei
13
5. Selected Current Positions as below:
Title
Name
Chairman Sheng-Hsiung Hsu
Vice
Chairman
Jui-Tsung Chen
Selected Current Positions
Chairman：Kinpo Electronics, Inc., AcBel Polytech Inc., Cal-Comp Electronics(Thailand) Public Company Limited, Teleport Access Services, Inc., AcSacca Solar
Energy Co., Ltd., Cal-Comp Electronics And communications Co., Ltd., Gempal Technology Corp., Panpal Technology Corp., Hong Ji Capital Co., Ltd.,
Hong Jin Investment Co., Ltd., Jipo Investment Inc., Kinpo Group Management Consultant Company, NTNU Innovation Investment Holding
Company, Compal Electronics Technology (Kunshan) Co., Ltd., Compal Information (Kunshan) Co., Ltd., Compal Information Technology
(Kunshan) Co., Ltd., Compal Digital Technology (Kunshan) Co., Ltd., Compal Electronics (Chengdu) Co., Ltd., Compal Electronics (ChongQing) Co.,
Ltd., Compal Electronics, (China) Co., Ltd., Compal Optoelectronics (Kunshan) Co., Ltd., Compal Display Electronics (Kunshan) Co., Ltd., Kunshan
Botai Electronics Co., Ltd., Compal Smart Device (Chongqing) Co., Ltd., Compal Investment (Sichuan) Co., Ltd., Compal Investment (Jiangsu) Co.,
Ltd., Compal Management (Chengdu) Co., Ltd., Kinpo Electronics (China) Co., Ltd., Cal-Comp Precision Holding Co., Ltd.
Managing Director：Taiwan Biotech Co., Ltd.
Director：Crownpo Technology Inc., Compal System Trading (Kunshan) Co., Ltd., Cal-Comp Optical Electronics (Suzhou) Co., Ltd., Cal-Comp Technology
(Suzhou) Co., Ltd., Cal-Comp Electronics and Communications (Suzhou) Co., Ltd., Acbel Polytech Holdings Inc., Acbel Polytech (Singapore) Pte.
Ltd., Ascendant Private Equity Investment Ltd., Billion Sea Holdings Ltd., Big Chance International Co., Ltd., Cal-Comp Electronics (USA) Co., Ltd.,
Cal-Comp Electronics de Mexico Co. S.A. de C.V., Cal-Comp Precision (Philippines), Inc., Cal-Comp USA (Indiana), Co., Inc., Cal-Comp USA (San
Diego), Co., Inc., Center Mind International Co., Ltd., Compal Display Holding (HK) Limited, Compal Electronics (Holding) Ltd., Compal Electronics
International Ltd., Compal International Ltd., Compal International Holding (HK) Limited, Compal International Holding Co., Ltd., Compal
Rayonnant Holdings Ltd., Core Profit Holdings Ltd., Flight Global Holding Inc., Fortune Way Technology Corp., Goal Reach Enterprises Ltd.,
HengHao Holdings A Co., Ltd., HengHao Holdings B Co., Ltd., High Shine Industrial Corp., Intelligent Universal Enterprise Ltd., Jenpal International
Ltd., Just International Ltd., Kinpo International (Singapore) Pte. Ltd., Kinpo International Ltd., Lipo Holding Co., Ltd., Prospect Fortune Group
Ltd., Prisco International Co., Ltd., Ranashe International Ltd., Smart International Trading Ltd.
President：Kinpo Group Management Consultant Company
Other：Honorary Chairman of Chinese National Federation of Industries, Honorary Chairman of Importers and Exporters Association of Taipei, Chairman of
The Third Wednesday Club, Policy Consultant of Taiwan Electrical and Electronic Manufacturers' Association., Chairman of China Productivity
Center, Vice Chairman of Straits Exchange Foundation, Vice Chairman of Sinocon Industrial Standards Foundation, Managing Director of Taiwan
Design Research Institute, Director of Management Institute in Taipei
Chairman：Arcadyan Technology Corporation, Ripal Optotronics Co., Ltd., Palcom International Corporation, General Life Biotechnology Co., Ltd., Raycore
Biotech Co., Ltd., ARCE Therapeutics, Inc., UniCore Biomedical Co., Ltd., Aco Smartcare Co.,Ltd., Ray-Kwong Medical Management Consulting Co., Ltd.,
Compal System Trading (Kunshan) Co., Ltd.
Director：Kinpo Electronics, Inc., Compal Broadband Networks, Inc., Mactech Co., Ltd., HengHao Technology Co. Ltd., Unicom Global, Inc., Kinpo Group
Management Consultant Company, Compal Electronics Technology (Kunshan) Co., Ltd., Compal Information (Kunshan) Co., Ltd., Compal
Information Technology (Kunshan) Co., Ltd., Compal Digital Technology (Kunshan) Co., Ltd., Compal Electronics (Chengdu) Co., Ltd., Compal
Electronics (ChongQing) Co., Ltd., Compal Electronics, (China) Co., Ltd., Compal Optoelectronics (Kunshan) Co., Ltd., Compal Display Electronics
(Kunshan) Co., Ltd., Compal Networking (Kunshan) Co., Ltd., Kunshan Botai Electronics Co., Ltd., Compal Investment (Sichuan) Co., Ltd., Compal
Investment (Jiangsu) Co., Ltd., Compal Management (Chengdu) Co., Ltd., Compal (Vietnam) Co., Ltd., Compal Development and Management
(Vietnam) Co., Ltd., Ascendant Private Equity Investment Ltd., Arcadyan Technology N.A. Corporation, Arcadyan Holding (BVI) Corp., Arch Holding
(BVI) Corp., Billion Sea Holdings Ltd., Big Chance International Co., Ltd., Bizcom Electronics, Inc., Center Mind International Co., Ltd., Compal
Display Holding (HK) Limited, Compal Electronics International Ltd., Compal Electronics (Holding) Ltd., Compal International Ltd., Compal
14
Title
Name
Selected Current Positions
International Holding Co., Ltd., Compal International Holding (HK) Limited, Compal Rayonnant Holdings Ltd., Compalead Electronics B.V., Compal
Wise Electronic (Vietnam) Co., Ltd., Core Profit Holdings Ltd., Etrade Management Co., Ltd., Flight Global Holding Inc., Forever Young Technology
Inc., Fortune Way Technology Corp., Giant Rank Trading Ltd., Goal Reach Enterprises Ltd., High Shine Industrial Corp., Intelligent Universal
Enterprise Ltd., Jenpal International Ltd., Just International Ltd., Prospect Fortune Group Ltd., Prisco International Co., Ltd., Smart International
Trading Ltd., Sinoprime Global Inc., Wah Yuen Technology Holding Ltd., Webtek Technology Co., Ltd.
Independent Director：Powertech Technology Inc.
Audit Committee Member：Powertech Technology Inc.
Chief Strategy Officer：Compal Electronics, Inc.
Other：Chairman of Chengdian Culture and Education Foundation
Director
Representative of
Binpal Investment
Co., Ltd.:
Wen-Being Hsu
Chairman：Binpal Investment Co., Ltd.
Kinpo Electronics,
Inc.
Director：AcBel Polytech Inc., CastleNet Technology Inc., Teleport Access Services, Inc., Crownpo Technology Inc., iHELPER Inc., Cal-Comp Big Data, Inc.,
XYZprinting, Inc., Norm Pacific Automation Corp., Kinpo Group Management Consultant Company, Cal-Comp Asset Management, Inc., Jipo
Investment Inc., PK Venture Capital Corp., Prudence Venture Investment Corp., NTNU Innovation Investment Holding Company
Director
Representative of
Kinpo Electronics
Inc.: Chieh-Li Hsu
Supervisor：Cal-Comp Biotech Co., Ltd., Jipo Investment Inc.
Chairman：AcBel Electronic (Dong Guan) Co., Ltd., AcBel Electronic (Wuhan) Co., Ltd., Acbel Polytech (Philippines) Inc.
Vice Chairman：Cal-Comp Electronics(Thailand) Public Company Limited
Director：Kinpo Electronics, Inc., AcBel Polytech Inc., CastleNet Technology Inc., The Eslite Spectrum Corporation, PChome Online Inc., ARCE Therapeutics,
Inc., Raypal Biomedical Co., Ltd., AcBel Telecom Inc., Cal-Comp Big Data, Inc., Sunny Go Solar Co., Ltd., Daytime Solar Energy Co., Ltd., AcRay
Energy Co., Ltd., AcTek Energy Co., Ltd., Ray-Kwong Medical Management Consulting Co., Ltd., LIZ Electronics (Nantong) Co., Ltd., Acbel (USA)
Polytech Inc., Acbel Polytech (Ireland) Limited, AcBel Polytech (SAMOA) Investment Inc., Acbel Polytech (Singapore) Pte Ltd., Acbel Polytech (UK)
Limited, Acbel Polytech Holdings Inc., AcBel Polytech International Inc., AcBel Polytech Japan Inc., CK Holdings Inc., CSA Holdings Inc., EPI
Technology Venture Pte. Ltd., Evercomm Singapore Pte. Ltd., Power Station Holdings Ltd.
Supervisor：Teleport Access Services, Inc., Kinpo Group Management Consultant Company, Full Power Investment Co., Ltd.
Independent Director：Winbond Electronics Corporation, Nuvoton Technology Corporation
Remuneration Committee Member：Winbond Electronics Corporation, Nuvoton Technology Corporation
Audit Committee Member：Winbond Electronics Corporation, Nuvoton Technology Corporation
President：AcBel Polytech Inc., Acbel (USA) Polytech Inc., Acbel Polytech (Philippines) Inc.
Other：Vice Chairman of Taiwan Electrical and Electronic Manufacturers' Association, Director of Importers and Exporters Association of Taipei
15
Title
Name
Director
Charng-Chyi Ko
Director
Sheng-Chieh Hsu
Director
Yen-Chia Chou
Director
Chung-Pin Wong
Director
Chiung-Chi Hsu
Selected Current Positions
Chairman：Taiwan Biotech Co., Ltd., All For Health Biotech Co., Ltd., Evergene Biotech Industrial Co., Ltd., Weck Tech Biotech Co., Ltd., Global BioParma Ltd.,
Genhealth Pharma Co., Ltd., Taiwan Veterans Pharmaceutical Co., Ltd., Aseptic Innovative Medicine Co., Ltd., Young and Health Care Resorts Inc.,
Taiwan Venture Capital Co., Ltd., Long Yee Investment Co. Ltd., Yinfeng International, Inc., Taiwan Chariston AMC Corp., Ltd, Twin Luck Global
Company Ltd.
Director：Kinpo Electronics, Inc., Baotek Industrial Materials Ltd., Formosan Union Chemical Corp., Chang Yao Technology Inc., OmniHealth Group, Inc., All
Information Inc., Spiregene Biotech Co., Ltd., Taiwan Carefor Home Pharmacy Co., Ltd., Minsheng Medical Holding Inc., Gold Precision Ltd., KKXC
Intergrated Management Holding (CYPRUS) Ltd., Optics Lab Inc., Syn Pharm Inc.
Supervisor：Teleport Access Services, Inc., Sunny Special Dyeing and Finishing Co., Ltd.
Other：Chairman of Yang Bi Li Education Foundation Of Management, Director of Health,Welfare and Environment Foundation, Managing Supervisor of
Cross-Strait Health Care and Leisure Activities Association
Chairman：Integrate Investment Corp.
Director ：Kinpo Electronics, Inc., Cal-Comp Electronics(Thailand) Public Company Limited, Cal-Comp Electronics And communications Co., Ltd., Jipo
Investment Inc., Kinpo Electronics (China) Co., Ltd., Dongguan Kaipo Electronics Co., Ltd., Kinpo International Ltd.
Supervisor：Gempal Technology Corp., Panpal Technology Corp., Hong Ji Capital Co., Ltd., Hong Jin Investment Co., Ltd.
Chairman：Sceptre Industry Co., Ltd., Mega Industry Co., Ltd.
Director：Kinpo Electronics, Inc., Micro Metal Electronics Co., Ltd.
Supervisor：Full Power Investment Co., Ltd.
President：Sceptre Industry Co.,Ltd.
Chairman：Compal Broadband Networks, Inc., Starmems Semiconductor Corp., HengHao Technology Co. Ltd., Rayonnant Technology Co., Ltd., HippoScreen
Neurotech Corp., Shennona Co., Ltd., Unicom Global, Inc., Wah Yuen Technology Holding Ltd.
Executive Director：Compower Global Service Co., Ltd.
Director：Arcadyan Technology Corporation, Mactech Co., Ltd., Gempal Technology Corp., Panpal Technology Corp., Ripal Optotronics Co., Ltd., Infinno
Technology Corp., General Life Biotechnology Co., Ltd., ARCE Therapeutics, Inc., UniCore Biomedical Co., Ltd., Aco Smartcare Co.,Ltd., Raypal
Biomedical Co., Ltd., Kinpo Group Management Consultant Company, Hong Ji Capital Co., Ltd., Hong Jin Investment Co., Ltd., Compal System
Trading (Kunshan) Co., Ltd., Compal Information Technology (Kunshan) Co., Ltd., Compal Information (Kunshan) Co., Ltd., Compal Electronics
Technology (Kunshan) Co., Ltd., Compal Electronics (Chengdu) Co., Ltd., Compal Electronics (ChongQing) Co., Ltd., Compal Digital Technology
(Kunshan) Co., Ltd., Compal Investment (Sichuan) Co., Ltd., Compal Management (Chengdu) Co., Ltd., Compal Smart Device (Chongqing) Co.,
Ltd., Allied Power Holding Corp., Amexcom Electronics, Inc. Auscom Engineering Inc., Bizcom Electronics, Inc., Compal Connector Manufacture
Ltd., HengHao Holdings A Co., Ltd., HengHao Holdings B Co., Ltd., Primetek Enterprises Ltd., Shennona Corporation, Sirqul Inc.
Supervisor：Hong Ya Technology Corporation
President：Compal Electronics, Inc., Gempal Technology Corp., Panpal Technology Corp., Hong Ji Capital Co., Ltd., Hong Jin Investment Co., Ltd.
Chairman：Full Power Investment Co., Ltd.
Director：E-Bow Bearing Co., Ltd., Juan Hsin Bao Hardware co., Ltd.
Director：Mactech Co., Ltd., Panpal Technology Corp., Kunshan Botai Electronics Co., Ltd., CGS Technology (Poland) Sp. z o. o.
Director Ming-Chih Chang
Compal Europe (Poland) Sp. z o. o.
President：Compal System Trading (Kunshan) Co., Ltd., Compal Information Technology (Kunshan) Co., Ltd., Compal Information (Kunshan) Co., Ltd., Compal
16
Title
Name
Selected Current Positions
Electronics Technology (Kunshan) Co., Ltd., Compal Electronics (Chengdu) Co., Ltd., Compal Electronics (ChongQing) Co., Ltd., Compal Digital
Technology (Kunshan) Co., Ltd., Compal Wireless Communications (Nanjing) Co., Ltd., Compal Digital Communications (Nanjing) Co., Ltd., Compal
Communications (Nanjing) Co., Ltd., Kunshan Botai Electronics Co., Ltd., Compower Global Service Co., Ltd., Compal Investment (Sichuan) Co.,
Ltd., Compal Management (Chengdu) Co., Ltd.
Director
Anthony Peter
Bonadero
Executive Vice President：Compal Electronics, Inc.
Executive Vice President：Auscom Engineering Inc.
Director
Sheng-Hua Peng
Independent
Director
Min Chih Hsuan
Independent
Director
Duei Tsai
Independent
Director
Duh Kung Tsai
Chairman：Compal Wireless Communications (Nanjing) Co., Ltd., Compal Digital Communications (Nanjing) Co., Ltd., HANHELT Communications (Nanjing)
Co., Ltd., Compal Communications (Nanjing) Co., Ltd.
Director：Arcadyan Technology Corporation, Gempal Technology Corp., Palcom International Corporation, Ripal Optotronics Co., Ltd., UniCore Biomedical
Co., Ltd., Hong Ji Capital Co., Ltd., Hong Jin Investment Co., Ltd., Compal Optoelectronics (Kunshan) Co., Ltd., Compal Display Electronics
(Kunshan) Co., Ltd., Compal Electronics, (China) Co., Ltd., Compal Smart Device (Chongqing) Co., Ltd., Compal Investment (Jiangsu) Co., Ltd.,
Amexcom Electronics, Inc., Bizcom Electronics, Inc.
Supervisor：General Life Biotechnology Co., Ltd.
President ： Palcom International Corporation, Compal Investment (Jiangsu) Co., Ltd., Compal Display Electronics (Kunshan) Co., Ltd., HANHELT
Communications (Nanjing) Co., Ltd., Compal Smart Device (Chongqing) Co., Ltd.
Executive Vice President：Compal Electronics, Inc.
Chairman：Clientron Corp., Taiwan Memory Company, Fusionvax, Inc., TC-1 Culture Fund, Vital First Investment Corporation, Maxima Ventures II, Inc.
Director：General Biologicals Corporation, SIPP, Inc., Meridigen Biotech Co., Ltd., Elevant Biopharma Co., Ltd., Tonghua United Capsules Co., Ltd., Allied
Focus Holding Corporation (Seychelles), Angeluca Science Ltd. (Republic of Seychelles), Bohe Biopharma Global corporation (Cayman), Moral
Express Holding Corporation (Seychelles), Orilitia Biopharma Limited (Hokg Kong), Pacgen Biopharmaceuticals Corporation (Canada)
Supervisor：Meribank Biotech Co., Ltd.
Remuneration Committee Member：Compal Electronics, Inc.
Audit Committee Member：Compal Electronics, Inc.
Independent Director：Taiwan High Speed Rail Corporation, TTY Biopharm Company Ltd.
Remuneration Committee Member：Compal Electronics, Inc., Taiwan High Speed Rail Corporation, TTY Biopharm Company Ltd.
Audit Committee Member：Compal Electronics, Inc., Taiwan High Speed Rail Corporation, TTY Biopharm Company Ltd.
Chairman：Powertech Technology Inc., Greatek Electronics Inc.
Director：Powertech Technoloyg (Suzhou) Ltd., Powertech Technology Akita Inc., Powertech Holding (B.V.I.) Inc., Powertech Technology (Singapore) Pte. Ltd.,
PTI Technology (Singapore) Pte. Ltd., Tera Probe, Inc.
Independent Director：Chicony Power Technology Co., Ltd.
Remuneration Committee Member：Compal Electronics, Inc., Chicony Power Technology Co., Ltd.
Audit Committee Member：Compal Electronics, Inc., Chicony Power Technology Co., Ltd.
Business Executive Representative：Powertech Technology Japan Ltd.
Other：Chairman of PTI Education Fundation
17
Major shareholders of the Company’s corporate shareholders
Name of corporate shareholder
Kinpo Electronics, Inc.
Major shareholders of the corporate shareholder (Note)
Compal Electronics, Inc. (8.44%), Jipo Investment Inc. (3.14%), Shen, Tsai Lai- Shun(2.85%), Panpal Technology Corp. (1.58%), Shen, Kun-Chao (1.53%),
Ho Bao Investment Co., Ltd. (1.52%), Tsai, Li-Chu (1.48%), Union Bank of Switzerland Taipei Branch, Trust property account-Tsai, Li Chu (1.36%),
JPMorgan hosting Sanskrit Vanguard Emerging Markets Equity Index Fund account (1.29%), JPMorgan Managed Advanced Stars advanced aggregate
International Equity Index (1.25%)
April 24, 2021
Note: If the major shareholder is also a corporate entity, please refer to the following table.
Major shareholders of the Company’s major corporate shareholders
Name of corporate shareholder
Jipo Investment Inc.
Panpal Technology Corporation
Ho Bao Investment Co., Ltd.
Kinpo Electronics, Inc. (100%)
Compal Electronics, Inc. (100%)
Hsu, Chieh-Li (45.76%), Tsai, Li-Chu (20.06%), Hsu, Chun-Chi (17.09%), Hsu, Yung-Hsu (17.09%)
Major shareholders of corporate shareholders
18
Professional qualifications and independence analysis of Directors
Criteria
Name
Sheng-Hsiung Hsu
Jui-Tsung Chen
Representative of Binpal
Investment Co., Ltd.:
Wen-Being Hsu
Representative of Kinpo
Electronics Inc.:
Chieh-Li Hsu
Charng-Chyi Ko
Sheng-Chieh Hsu
Yen-Chia Chou
Chung-Pin Wong
Chiung-Chi Hsu
Ming-Chih Chang
Anthony Peter
Bonadero
Sheng-Hua Peng
Min Chih Hsuan
Duei Tsai
Duh-Kung Tsai
Having Met One of the Following Professional Qualifications combined with
at Least Five Years Work Experience
An Instructor or Higher
Position in a Department of
Commerce, Law, Finance,
Accounting, or Other
Academic Department
Related to the Business
Needs of the Company in a
Public or Private Junior
College, College or
University
A Judge, Public Prosecutor,
Attorney, Certified Public
Accountant, or Other
Professional or Technical
Specialist Who has Passed a
National Examination and
been Awarded a Certificate
in a Profession Necessary
for the Business of the
Company
Having Work
Experience in the
Areas of Commerce,
Law, Finance, or
Accounting, or
Otherwise Necessary
for the Business of
the Company
Independence Criteria (Note)
1
2
3
4
5
6
7
8
9
10
11
12
Number of
Other Public
Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔ ✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔ ✔
✔
✔
✔
✔ ✔
✔ ✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
0
0
0
0
0
0
0
0
0
0
0
0
0
2
1
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
19
Note: If the Director or supervisor meets the following conditions in the two years before the election and during the term of office, please mark “✔” in the space below each
condition code.
(1) Not an employee of the Company or its affiliated enterprises.
(2) Not a Director or a supervisor of the Company or its affiliated enterprises (except for concurrent Independent Directors of the Company and its parent company, subsidiaries,
or subsidiaries of the same parent company in accordance with this Act or local laws and regulations).
(3) A natural person shareholder who or whose spouse or minor children or in another person’s name does not hold more than 1% of the total issued shares of the Company or
is not a top-ten shareholder.
(4) Not a manager in (1) or the spouse, second-tier relatives, or third-tier relatives of the persons listed in (2) or (3).
(5) A Director, supervisor, or employee of a corporate shareholder who does not directly hold more than 5% of the total issued shares of the Company, is a top-five shareholder,
or is designated as a representative to serve as a Director or supervisor of the Company in accordance with paragraph 1 or 2 of Article 27 of the Company Act (except for
concurrent Independent Directors of the Company and its parent company, subsidiaries, or subsidiaries of the same parent company in accordance with this Act or local laws
and regulations).
(6) A Director, supervisor, or employee of another company who does not have a seat on the Board of Directors or more than half of the shares with voting rights are controlled
by the same person of this company (except for concurrent Independent Directors of the Company and its parent company, subsidiaries, or subsidiaries of the same parent
company in accordance with this Act or local laws and regulations).
(7) A Director, supervisor, or employee of another company or institution who is not the same person or spouse as the Chairman, President, or an equivalent position of the
Company (except for concurrent Independent Directors of the Company and its parent company, subsidiaries, or subsidiaries of the same parent company in accordance with
this Act or local laws and regulations).
(8) A Director, supervisor, or manager of another company or institution which does not have financial or business dealings with the Company, or a shareholder holding more
than 5% of the shares of the Company (not applicable if the Company or institution holds more than 20% but no more than 50% of the total issued shares of the Company,
with concurrent Independent Directors of the Company and its parent company, subsidiaries, or subsidiaries of the same parent company in accordance with this Act or local
laws and regulations).
(9) A professional, sole proprietor, partner, business owner or partner, Director, supervisor, manager, or the spouse of the above of a company or institution which does not
provide audit services to the Company or its affiliated enterprises or the cumulative remuneration amount of which in the past two years does not exceed TWD 500,000 for
business, legal affairs, finance or accounting related services. However, this does not apply to the members of the remuneration committee, public takeover review committee,
or special merger and acquisition committee who perform their functions in accordance with the Securities and Exchange Act or the Business Mergers and Acquisitions Act.
(10) Not a spouse or have a second-tier relative relationship with other Directors.
(11) There are no such circumstances as in Article 30 of the Company Act.
(12) Not the government, legal person, or their representatives are elected as stipulated in Article 27 of the Company Act.
20
3.2.2 Management Team
Name/
Shares held
minors
names of others
Major career (academic) achievements
Shares held by spouse and
Total shares held in the
Title
Nationality/
Date elected
Gender
/appointed
Subsidiary shareholding
Shares held
Shareholding
Shareholding
Shareholding
(Note 1, 2)
Shares
Percentage
Shares
Percentage
Shares
Percentage
Chief Strategy
Officer
Jui-Tsung Chen
2018.07.04
35,352,587
0.80%
1,069,405
0.02%
(%)
(%)
President
Chung-Pin Wong
2018.07.04
6,618,618
0.15%
1,398
0.00%
Executive Vice
President
Executive Vice
President
Executive Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Ming-Chih Chang
2018.07.04
1,919,489
0.04%
Sheng-Hua Peng
2018.07.04
835,000
0.02%
Chen-Chang Hsu
2011.08.31
0
0.00%
0
0
0
0.00%
0.00%
0.00%
Chun-Te Shen
2007.01.01
2,953,700
0.07%
900,000
0.02%
Kuo-Chuan Chen
2007.01.01
685,823
0.02%
10,924
0.00%
Chyou-Jui Wei
2010.03.18
0
0.00%
Wen-Da Hsu
2014.02.27
1,333,000
0.03%
Shi-Kuan Chen
2009.05.01
Chi-Wai Wan
2017.05.10
0
0
0.00%
0.00%
0
0
0
0
0.00%
0.00%
0.00%
0.00%
21
0
0
0
0
0
0
0
0
0
0
0
April 27, 2021
Spouse or relatives of second degree or
closer acting as managers
Title
Name
Relationship
Vice President
Po-Tang Wang
Relative by
affinity
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Selected
Current
Positions
Refer to
Page14~15
Refer to
Page 16
Refer to
Page 16~17
Refer to
Page 17
(Note 4)
N/A
N/A
N/A
(%)
0.00%
Honorary Doctorate, National Cheng Kung University
Chairman of Arcadyan Technology Corp.
Graduate Institute of Management Science, National Chiao
0.00%
Tung University
Chairman of Compal Broadband Networks, Inc.
Department of Electrical Engineering, Ming Chi University of
0.00%
Technology
Director of Mactech Co., Ltd.
Graduate Institute of Electrical Engineering, National Taiwan
0.00%
University
Director of Arcadyan Technology Corp.
National Chiao Tung University EMBA
0.00%
Executive Vice President of WINTEK Corporation
Graduate Institute of Electrical Engineering, National Taiwan
0.00%
University
(Note 4)
N/A
N/A
N/A
Director of Kinpo Electronics Inc.
0.00%
Department of Physics, Chung Yuan Christian University
Senior Vice President of Compal Communication Inc.
Master of Business Administration, University of Washington,
N/A
N/A
N/A
N/A
0.00%
USA
(Note 4)
N/A
N/A
N/A
0.00%
0.00%
Senior Vice President of Toppoly Optoelectronics Corp.
Department of Media Administration, Shih Hsin University
Senior Vice President of Compal Communication Inc.
Master of Industrial Design, Cranbrook Academy of Art
Director of Design and Customer Affairs, Philips (Hong Kong)
Department of Electrical Engineering, Fu Jen Catholic
(Note 4)
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
0.00%
University
N/A
N/A
N/A
N/A
Inventec Corp. Vice President
Name/
Shares held
minors
names of others
Major career (academic) achievements
Shares held by spouse and
Total shares held in the
Title
Nationality/
Date elected
Gender
/appointed
Subsidiary shareholding
Shares held
Shareholding
Shareholding
Shareholding
(Note 1, 2)
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
Selected
Current
Positions
Spouse or relatives of second degree or
closer acting as managers
Title
Name
Relationship
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Min-Tung Weng
2018.12.01
623,786
0.01%
Lo-Chun Lee
2018.12.01
420,000
0.01%
Sheng-Hung Li
2019.11.11
495,574
0.01%
Bor-Heng Chen
2020.05.13
280,010
0.01%
0
0
0
0
0.00%
0.00%
0.00%
0.00%
Chung-Hsing Tan
2020.08.12
0
0.00%
5,320
0.00%
Vice President
Chih-Chuan Cheng
2003.01.01
2,103,786
0.05%
51,194
0.00%
Vice President
Ching-Hsiung Lu
2003.01.01
7,437,007
0.17%
850,000
0.02%
Vice President
Po-Tang Wang
2007.07.10
559,548
0.01%
486
0.00%
Vice President
Tzong-Ming Wang
2009.07.16
293,184
0.01%
Vice President
Fu-Chuan Chang
2009.07.16
160,662
0.00%
Vice President
Yung-Nan Chang
2011.01.01
0
0.00%
0
0
0
0.00%
0.00%
0.00%
22
0
0
0
0
0
0
0
0
0
0
0
Master of Business Administration, University of Washington,
0.00%
USA
(Note 4)
N/A
N/A
N/A
Deputy Manager of Sales, Kapok Computer Company
Department of Electronic Engineering, Lee-Ming Institute of
0.00%
Technology
N/A
N/A
N/A
N/A
Chairman's Special Assistant, Mag Technology Co., Ltd.
Department of Electronics, National Taipei Institute of
0.00%
Technology
COLUMBIA UNIVERSITY
N/A
N/A
N/A
N/A
0.00%
Master of Industrial Engineering and Operations
N/A
N/A
N/A
N/A
0.00%
0.00%
0.00%
Management
Department of Electrical Engineering, Tatung University
Vice President of Compal Communication Inc.
Department of Electronic Engineering, Lunghwa University of
Science and Technology
Deputy Manager of Research and Development, Top
Information Technologies Co., Ltd.
Department of Accounting, Feng Chia University
Director Compal Communication Inc.
Department of Computer Science and Information
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
0.00%
Engineering, National Taiwan University
(Note 4)
Chief Strategy
Officer
Jui-Tsung Chen
Relative by
affinity
President of Vibo Telecom Inc.
National Taipei Institute of Technology
Head of Research and Development, CLEVO Company
National Chin-Yi University of Technology
Production Manager, ADI Corp
MBA, Pacific Western University
Factory Manager, Delta Electronics Inc.
0.00%
0.00%
0.00%
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Name/
Shares held
minors
names of others
Major career (academic) achievements
Shares held by spouse and
Total shares held in the
Title
Nationality/
Date elected
Gender
/appointed
Subsidiary shareholding
Shares held
Shareholding
Shareholding
Shareholding
(Note 1, 2)
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
Selected
Current
Positions
Spouse or relatives of second degree or
closer acting as managers
Title
Name
Relationship
Vice President
Yong-Ho Su
2011.07.01
500,401
0.01%
73,000
0.00%
Vice President
Jyh-Shyan Liang
2011.10.31
80,000
0.00%
Vice President
Chiao-Lie Huang
2014.02.27
38,992
0.00%
Vice President
Yi-Yun Chang
2014.08.13
140,246
0.00%
Vice President
Hsin-Kung Mao
2014.11.13
420,714
0.01%
Vice President
Hsin-Hsiung Huang
2015.01.22
419,001
0.01%
Vice President
Shih-Hong Huang
2016.02.24
280,000
Vice President
Yi-Chiang Chiu
2016.02.24
280,000
0.01%
0.01%
Vice President
Jui-Chun Shyur
2016.05.11
0
0.00%
0
0
0
0
0
0
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Vice President
Ta-Chun Wang
2016.06.29
204,200
0.00%
4,119
0.00%
Vice President
Jen-Liang Lin
2018.03.06
50,500
0.00%
General Counsel
Peng-Hong Chan
2018.05.09.
0
0.00%
Vice President
Wei-Chia Wang
2018.12.01
120,000
0.00%
0
0
0
0.00%
0.00%
0.00%
23
0
0
0
0
0
0
0
0
0
0
0
0
0
Department of Electrical Engineering, National Taipei
0.00%
Institute of Technology
N/A
N/A
N/A
N/A
Vice President of Arima Photovoltaic and Optical Corp.
University of Colorado
0.00%
Postgraduate Institute of Digital Communication/Vice
N/A
N/A
N/A
N/A
President of Wireless Communication, Altek Corporation
Graduate Institute of Electrical Engineering, National Taiwan
0.00%
University
(Note 4)
N/A
N/A
N/A
Vice President of Compal Communication Inc.
Graduate Institute of Electrical Engineering, National Taiwan
0.00%
University
N/A
N/A
N/A
N/A
Senior Manager of Compal Communication Inc.
Master of Business Administration, University of Lincoln
Director of Avalue Technology Inc.
Department of Electronics, Chung Yuan Christian University
Senior Manager of Compal Communication Inc.
Master in Control Engineering, National Chiao Tung University
Director of Coretronic Corporation
0.00%
0.00%
0.00%
0.00% Master in Earth Sciences, National Central University
PhD, Graduate Institute of Electrical Engineering, National
0.00%
Taiwan University
Photonics Industries International, Inc.President
Master of Industrial Engineering, University of Illinois
Shanghai Real Industrial Co., Ltd. Managing Vice President
Department of Industrial Engineering, Feng Chia University
Director of Operations Division, Compal Fab No. 2
Master of Cornell University Law School
CSO, Pou Chen Group
Chung Yuan Christian University, Electrical Engineering
Senior Director of LCFC
0.00%
0.00%
0.00%
0.00%
(Note 4)
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Name/
Shares held
minors
names of others
Major career (academic) achievements
Shares held by spouse and
Total shares held in the
Title
Nationality/
Date elected
Gender
/appointed
Subsidiary shareholding
Shares held
Shareholding
Shareholding
Shareholding
(Note 1, 2)
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
Selected
Current
Positions
Spouse or relatives of second degree or
closer acting as managers
Title
Name
Relationship
Accounting and
Corporate
Governance
Officer
Cheng-Chiang Wang
2018.07.04
2019.05.13
955,808
0.02%
Vice President
Cheng-Hui Su
2018.12.01
Vice President
Tu-Chuan Tu
2018.12.01
Vice President
Chang-Chieh Tien
2018.12.01
105,000
593,081
403
Financial Officer
Guo-Dung Yu
2020.08.12
60,000
Vice Presiden
Peng Kuee Lau
2020.08.12
Vice Presiden
Yau-De Chiou
2021.02.25
Internal Audit
Officer
Po-Wen Hsieh
2010.10.27
0
0
0
0.00%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
30
0
62,105
0
0
0
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
0
0
0
0
0
0
0
Fu Jen Catholic University, Department of Accounting
0.00%
Financial officer of Allied Circuit Co., Ltd.
(Note 4)
N/A
N/A
N/A
0.00%
Tulane University Master of MBA
0.00%
Vanung University, Electrical Engineering
0.00% National Chiao Tung University,Transportation Management
0.00%
0.00%
George Washington University Master of Accounting
Financial officer of Arcadyan Technology Corp.
IOWA STATE UNIVERSITY of Science and Technology
Bachelor
Columbia Southern University Master of Business
0.00%
Administration Alabama
President of Lien Chang Electronic Enterprise Co., Ltd.
Department of Accounting, National Taiwan University
0.00%
Audit Manager, KGT Telecom
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Note: 1. Except for Senior Vice President Peng Kuee Lau is Malaysia national, all other managers are ROC nationals; except for Senior Vice President Chyou-Jui Wei, all other managers are male.
2. The Chairman, Chief Strategy Officer, and President of the Company are not the same person, spouses, or related to each other.
3. Senior Vice Presidents Pei-Yuan Chen, Ying Chang, Wei-Chang Chen and Vice Presidents Shyh -An Lee, Hsiao-Wei Lo resigned in 2020.
24
4. Concurrent positions in other companies
Title
Name
Concurrent positions in other companies
Executive Vice
President
Chen-Chang Hsu
Chairman：HengHong Optoelectronics Technology (Kunshan) Co., Ltd., LUCOM Display Technology (KunShan) Ltd.
Vice Chairman：HengHao Technology Co. Ltd.
Director：Mactech Co., Ltd.
President：HengHao Technology Co. Ltd., HengHong Optoelectronics Technology (Kunshan) Co., Ltd., LUCOM Display Technology (KunShan)
Senior Vice
President
Chun-Te Shen
Director：HippoScreen Neurotech Corp., Auscom Engineering Inc., Shennona Corporation
Ltd.
Senior Vice
President
Chyou-Jui Wei
Chairman：Rapha Bio Ltd.
Director：Taiwan Star Telecom Co., Ltd., Chenfeng Optronics Corp., General Life Biotechnology Co., Ltd., Raycore Biotech Co., Ltd., ARCE
Therapeutics, Inc., UniCore Biomedical Co., Ltd., IIH Biomedical Venture Fund I Co.,, Hua Vi Venture Capital Corporation, Hua
VII Venture Capital Corporation, Cdib and Partners Investment Holding Corp., Compal Electronic Technology (Chongqing) Co.,
Ltd., ZhengYing Electronics(Chongqing) Co., Ltd., Compal Precision Module(Jiangsu) Co., Ltd., ShengBao Precision Electronics
(Taicang) Ltd., Rayonnant Technology (HK) Holdings Limited
Supervisor：HengHao Technology Co. Ltd., Rayonnant Technology Co., Ltd., Mactech Co., Ltd., Rayonnant Technology (HK) Holdings Limited,
Infinno Technology Corp., Ripal Optotronics Co., Ltd., Unicom Global, Inc., Aco Smartcare Co.,Ltd., Ray-Kwong Medical
Management Consulting Co., Ltd., Rayonnant Technology (Taicang) Co., Ltd.
Independent Director：SYNergy ScienTech Corp., Visco Vision Inc.
Remuneration Committee Member：SYNergy ScienTech Corp., Visco Vision Inc.
Audit Committee Member：SYNergy ScienTech Corp., Visco Vision Inc.
Wen-Da Hsu
Director：HANHELT Communications (Nanjing) Co., Ltd.
Shi-Kuan Chen
Director：Rayonnant Technology Co., Ltd., Rayonnant Technology (Taicang) Co., Ltd.
Min-Tung Weng
Director：Auscom Engineering Inc.
President：Auscom Engineering Inc.
Chung-Hsing Tan
Director：HANHELT Communications (Nanjing) Co., Ltd.
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Vice President
Ching-Hsiung Lu
Director：Zhi-Bao Technology Corporation, Arcadyan Technology (Shanghai) Corp.
Supervisor：Compal Electronics Technology (Kunshan) Co., Ltd., Compal Information (Kunshan) Co., Ltd., Compal Information Technology
(Kunshan) Co., Ltd., Compal Electronics, (China) Co., Ltd., Compal Digital Technology (Kunshan) Co., Ltd., Compal Electronics
25
Title
Name
Concurrent positions in other companies
(Chengdu) Co., Ltd., Compal Electronics (ChongQing) Co., Ltd., Compal Optoelectronics (Kunshan) Co., Ltd., Compal Display
Electronics (Kunshan) Co., Ltd., Compal Networking (Kunshan) Co., Ltd., Kunshan Botai Electronics Co., Ltd., Compal
Investment (Sichuan) Co., Ltd., Compal Investment (Jiangsu) Co., Ltd., Compal Management (Chengdu) Co., Ltd.
Vice President
Po-Tang Wang
Independent Director：Galaxy Software Services Corporation
Remuneration Committee Member：Galaxy Software Services Corporation
Audit Committee Member：Galaxy Software Services Corporation
Director：Bizcom Electronics, Inc., CGS Technology (Poland) Sp. z o. o., Compal Europe (Poland) Sp. z o.o.
Vice President
Fu-Chuan Chang
President：Compal Optoelectronics (Kunshan) Co., Ltd., Compal Electronics, (China) Co., Ltd.
Vice President
Chiao-Lie Huang
Supervisor：HANHELT Communications (Nanjing) Co., Ltd.
Director：Avalue Technology Inc., Unicom Global, Inc., Amexcom Electronics, Inc., Compalead Electronics B.V., Mexcom Electronics, LLC,
Vice President
Hsin-Kung Mao
Mexcom Technologies, LLC
Vice President Hsin-Hsiung Huang
Vice President
Accounting
and Corporate
Governance
Officer
Vice
Presidentt and
Financial
Officer
Cheng-Chiang Wang
Guo-Dung Yu
President：Amexcom Electronics, Inc.
Director：Compal Wireless Communications (Nanjing) Co., Ltd., Compal Digital Communications (Nanjing) Co., Ltd., Compal Communications
(Nanjing) Co., Ltd.
Director：Allied Circuit Co., Ltd., Zhi-Bao Technology Corporation, HengHao Technology Co. Ltd., Palcom International Corporation, Infinno
Technology Corp., Compal Wireless Communications (Nanjing) Co., Ltd., Compal Digital Communications (Nanjing) Co., Ltd.,
Compal Communications (Nanjing) Co., Ltd., Rayonnant Technology (Taicang) Co., Ltd., Compal Electronics India Private
Limited
Supervisor：HippoScreen Neurotech Corp., Compal System Trading (Kunshan) Co., Ltd., Compower Global Service Co., Ltd., HengHong
Optoelectronics Technology (Kunshan) Co., Ltd., Compal Smart Device (Chongqing) Co., Ltd.
Chairman：Compal Electronics India Private Limited
Supervisor：Palcom International Corporation, ARCE Therapeutics, Inc., Compal Wireless Communications (Nanjing) Co., Ltd., Compal Digital
Communications (Nanjing) Co., Ltd., Compal Communications (Nanjing) Co., Ltd.
President：Compal Electronics India Private Limited
26
3.2.3 Remuneration of Directors, Independent Directors, President and Vice Presidents
1. Remuneration of Directors and Independent Directors
Directors' remuneration
Remuneration as an employee
Remuneration (A)
Pension (B)
Remuneration from
earnings appropriation
(C)
Business department
implementation
Fees for services rendered
(D)
The sum of A, B, C and D
as a percentage of after-
tax profit
Salaries, bonuses, special
allowances etc (E)
Retirement
Pension (F)
Share of profit as an employee (G)
The
Company
All
companies
included in
the financial
statements
The
Company
All
companies
included in
the
financial
statements
The
Company
All
companies
included in
the
financial
statements
The
Company
All
companies
included in
the financial
statements
The
Company
All
companies
included in
the
financial
statements
The
Company
All
companies
included in
the financial
statements
The
Company
All
companies
included in
the
financial
statements
The Company
All companies included in
the financial statements
Cash
Stock
Amount
Amount
Cash
Stock
The sum of A, B, C, D, E, F,
and G as a percentage of
after-tax profit
The
Company
All
companies
included in
the
financial
statements
Remunerati
on from
ventures
other than
subsidiaries
or from
the parent
company
(H)
Unit: TWD Thousands; Thousand shares; %
0
0
0
0
51,541
51,541
2,284
3,034
0.5749%
0.5829%
74,143
119,307
743
743
22,900
0
22,900
0
1.6194%
2.1099%
63,308
Title
Name
Chairman
Sheng-Hsiung Hsu
Vice Chairman
Jui-Tsung Chen
Director
Director
Director
Director
Director
Director
Director
Director
Director
Representative: of
Binpal Investment Co.,
Ltd.
Wen-Being Hsu
Representative of Kinpo
Electronics Inc.:
Chieh-Li Hsu,
Shyh-Yong Shen
Charng-Chyi Ko
Sheng-Chieh Hsu
Yen-Chia Chou
Chung-Pin Wong
Chiung-Chi Hsu
Ming-Chih Chang
Anthony Peter
Bonadero
Director
Sheng-Hua Peng
Independent
Director
Independent
Director
Independent
Director
Min-Chih Hsuan
Duei Tsai
7,200
7,200
0
0
0
0
475
475
0.0820%
0.0820%
0
0
0
0
0
0
0
0
0.0820%
0.0820%
0
Duh-Kung Tsai
1. Please state the remuneration payment policy, system, standard and structure of Independent Directors, and the relationship between factors such as the responsibilities, risks and time devoted, and the amount of remuneration:
The remuneration of Independent Directors shall be submitted by the remuneration committee to the Board of Directors and decided by the Board of Directors, which depended on personal partake-in, contribution to the Company’s business and benchmarks in the same industry according to the “Articles of Association".
2. Remuneration collected by Directors for their services (i.e. acting as advisor for non-employees) as disclosed in the Financial Report in the most recent year not shown in the table: 0
27
Note: 1. Change in representative of the Company’s institutional Director of Kinpo Electronics, Inc., and the former Shyh-Yong Shen was re-appointed to Chieh-Li Hsu, on July 21, 2020.
2. In 2020, the Company made pension contributions totaling TWD 743,000 (including TWD 324,000 under the new system and TWD 419,000 under the old system) for Directors who also assumed managerial roles
as employees; Meanwhile, all companies reported in the financial statements had made pension contributions totaling TWD 743,000 (including TWD 324,000 under the new system and TWD 419,000 under the
old system).
3. Directors’ compensation refers to the estimated Directors’ compensation approved by the Board of Directors meeting on March 26, 2021.
▓ Table of Remuneration Ranges
Range of Remuneration
Under TWD 1,000,000
TWD 1,000,000 ~ TWD 2,000,000 (exclusive)
TWD 2,000,000 ~ TWD 3,500,000 (exclusive)
TWD 3,500,000 ~ TWD 5,000,000 (exclusive)
TWD 5,000,000 ~ TWD 10,000,000 (exclusive)
TWD 10,000,000 ~ TWD 15,000,000 (exclusive)
TWD 15,000,000 ~ TWD 30,000,000 (exclusive)
TWD 30,000,000~ TWD 50,000,000 (exclusive)
TWD 50,000,000 ~ TWD 100,000,000 (exclusive)
Over TWD 100,000,000 (inclusive)
Total
Total of (A+B+C+D)
Total of (A+B+C+D+E+F+G+H)
Number of Directors
The Company
Companies in the consolidated
financial statements
The Company
Companies in the consolidated
financial statements
3 (Note 1)
3 (Note 2)
8 (Note 3)
4 (Note 4)
3 (Note 5)
3 (Note 6)
8 (Note 7)
4 (Note 8)
3 (Note 9)
3 (Note 10)
5 (Note 11)
3 (Note 12)
2 (Note 13)
2 (Note 14)
1 (Note 15)
3 (Note 16)
3 (Note 17)
4 (Note 18)
3 (Note 19)
4 (Note 20)
18
18
18
18
Sheng-Chieh Hsu, Yen-Chia Chou, Chung-Pin Wong, Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng, Anthony Peter Bonadero, Kinpo Electronics, Inc. - 8 positions
Sheng-Hsiung Hsu, Jui-Tsung Chen, Charng-Chyi Ko, Binpal Investment Co., Ltd. - 4 positions
Sheng-Chieh Hsu, Yen-Chia Chou, Chung-Pin Wong, Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng, Anthony Peter Bonadero, Kinpo Electronics, Inc. - 8 positions
Sheng-Hsiung Hsu, Jui-Tsung Chen, Charng-Chyi Ko, Binpal Investment Co., Ltd. - 4 positions
Note:
1. Wen-Being Hsu, Chieh-Li Hsu, Shyh-Yong Shen - 3 positions
2. Min Chih Hsuan, Duei Tsai, Duh Kung Tsai - 3 positions
3.
4.
5. Wen-Being Hsu, Chieh-Li Hsu, Shyh-Yong Shen - 3 positions
6. Min Chih Hsuan, Duei Tsai, Duh Kung Tsai - 3 positions
7.
8.
9. Wen-Being Hsu, Chieh-Li Hsu, Shyh-Yong Shen - 3 positions
10. Min Chih Hsuan, Duei Tsai, Duh Kung Tsai - 3 positions
11. Sheng-Chieh Hsu, Yen-Chia Chou, Chiung-Chi Hsu, Anthony Peter Bonadero, Kinpo Electronics, Inc. - 5 positions
28
Jui-Tsung Chen, Chung-Pin Wong - 2 positions
12. Sheng-Hsiung Hsu, Charng-Chyi Ko, Binpal Investment Co., Ltd. - 3 positions
13. Ming-Chih Chang, Sheng-Hua Peng - 2 positions
14.
15. Wen-Being Hsu1 - 1 position
16. Min Chih Hsuan, Duei Tsai, Duh Kung Tsai - 3 positions
17. Yen-Chia Chou, Chiung-Chi Hsu, Kinpo Electronics, Inc. - 3 positions
18. Shyh-Yong Shen, Charng-Chyi Ko, Sheng-Chieh Hsu, Binpal Investment Co., Ltd. -4 positions
19. Chieh-Li Hsu, Ming-Chih Chang, Sheng-Hua Peng - 3 positions
20. Sheng-Hsiung Hsu, Jui-Tsung Chen, Chung-Pin Wong, Anthony Peter Bonadero - 4 positions
2. Remuneration of Supervisors: Not Applicable (The Company adopts an Audit Committee system)
3. Remuneration of the President and Vice Presidents
Salary (A)
Pension (B)
Bonus and
special allowances (C)
Share of profit as an employee (D)
Sum of A, B, C and D as a percentage of
after-tax profit (%)
Title
Name
All companies
All companies
included in the
All companies
The Company
All companies included in the financial
statements
The Company
included in the
The Company
The Company
included in the
financial statements
financial
statements
financial statements
Cash
Amount
Stock
Amount
Cash
Amount
Stock
Amount
The Company
All companies included in
the financial statements
Remuneration from ventures
other than subsidiaries or
from the parent company (E)
Unit: TWD Thousands; Thousand shares; %
47 employees
including CSO Jui-
Tsung Chen
(Note1)
122,116
128,322
6,007
6,007
230,736
231,289
101,845
0
101,845
0
4.9211 %
4.9933%
1,063
Note: 1.Managers’ titles and names
‧
‧
‧
‧
‧
Chief Strategy Officer: Jui-Tsung Chen – 1 position
President: Chung-Pin Wong – 1 position
Executive Vice Presidents: Ming-Chih Chang, Shen-Hua Peng, Chen-Chang Hsu – 3 positions
Senior Vice Presidents: Chun-Te Shen, Kuo-Chuan Chen, Chyou-Jui Wei, Wen-Da Hsu, Shi-Kuan Chen, Chi-Wai Wan, Min-Tung Weng, Lo-Chun Lee, Sheng-Hung Li, Bor-Heng Chen, Chung-Hsing Tan, Pei-Yuan
Chen, Ying Chang, Wei-Chang Chenn–14 positions
Vice Presidents: Chih-Chuan Cheng, Ching-Hsiung Lu, Po-Tang Wang, Tzong-Ming Wang, Fu-Chuan Chang, Yung-Nan Chang, Yong-Ho Su, Jyh-Shyan Liang, Chiao-Lie Huang, Yi-Yun Chang, Hsin-Kung Mao, Hsin-
Hsiung Huang, Shih-Hong Huang, Yi-Chiang, Jui-Chun Shyur, Ta-Chun Wang, Liang-Jen Lin, Peng-Hong Chan, Wei-Chia Wang, Cheng- Chiang Wang, Cheng-Hui Su, Tu-Chuan Tu, Chang-Chieh Tien,
Guo-Dung Yu, Peng Kuee Lau, Yau-De Chiou, Shyh -An Lee, Hsiao-Wei Lo–28 positions
29
2. The Company made pension contributions totaling TWD 6,007,000 (including TWD 4,284,,000 under the new system and TWD 1,723,000 under the old system). While all companies reported in the financial statements
made pension contributions totaling TWD 6,007,000 (including TWD 4,284,,000 under the new system and TWD 1,723,000 under the old system).
3. Employees’ compensation appropriation was approved by the Board of Directors at the meeting on March 26, 2021. The compensations of the aforementioned managers were not yet final and will be reviewed based
on the list of the date of distribution.
▓ Table of Remuneration Ranges
Range of Remuneration
Under TWD 1,000,000
TWD 1,000,000 ~ TWD 2,000,000 (exclusive)
TWD 2,000,000 ~ TWD 3,500,000 (exclusive)
TWD 3,500,000 ~ TWD 5,000,000 (exclusive)
TWD 5,000,000 ~ TWD 10,000,000 (exclusive)
TWD 10,000,000 ~ TWD 15,000,000 (exclusive)
TWD 15,000,000 ~ TWD 30,000,000 (exclusive)
TWD 30,000,000~ TWD 50,000,000 (exclusive)
TWD 50,000,000 ~ TWD 100,000,000 (exclusive)
Over TWD 100,000,000 (inclusive)
Total
Total of (A+B+C+D)
The Company
2 (Note 1)
3 (Note 2)
4 (Note 3)
24 (Note 4)
8 (Note 5)
4 (Note 6)
2 (Note 7)
47
Number of President and Vice Presidents
Total of (A+B+C+D+E)
Companies in the consolidated
financial statements
2(Note 8)
3 (Note 9)
2 (Note 10)
26 (Note 11)
8 (Note 12)
4 (Note 13)
2 (Note 14)
47
Note:
1.
2.
3.
4.
Yau-De Chiou、Ying Chang - 2 positions
Pei-Yuan Chen、Hsiao-Wei Lo、Shyh-An Lee - 3 positions
Ching-Hsiung Lu、Fu-Chuan Chang、Yung-Nan Chang 、Peng Kuee Lau - 4 positions
Kuo-Chuan Chen、Chyou-Jui Wei、Wen-Da Hsu、Chih-Chuan Cheng、Po-Tang Wang、Tzong -Ming Wang、Jyh-Shyan Liang、 Chiao-Lie Huang 、Yi-Yun Chang、Hsin-
Kung Mao、Hsin-Hsiung Huang、Shih-Hong Huang、Yi-Chiang Chiu、Jui-Chun Shyur、Ta-Chun Wang、Jen-Liang Lin、Peng-Hong Chan、Wei-Chia Wang、Cheng-Chiang
Wang、Cheng-Hui Su、Tu-Chuan Tu、Chang-Chieh Tien、Guo-Dung Yu、Wei-Chang Chen - 24 positions
Chun-Te Shen、Shi-Kuan Chen、Min-Tung Weng、Lo-Chun Lee、Sheng-Hung Li、Bor-Heng Chen、Chung-Hsing Tan、Yong-Ho Su - 8 positions
5.
6. Ming-Chih Chang、Sheng-Hua Peng、Chen-Chang Hsu、Chi-Wai Wan - 4 positions
7.
8.
Jui-Tsung Chen、Chung-Pin Wong - 2 positions
Yau-De Chiou、Ying Chang - 2 positions
30
Pei-Yuan Chen、Hsiao-Wei Lo、Shyh-An Lee - 3 positions
9.
10. Ching-Hsiung Lu、Peng Kuee Lau - 2 positions
11. Kuo-Chuan Chen、Chyou-Jui Wei、Wen-Da Hsu、Chih-Chuan Cheng、Po-Tang Wang、Tzong -Ming Wang、Fu-Chuan Chang、Yung-Nan Chang 、Jyh-Shyan Liang、
Chiao-Lie Huang 、Yi-Yun Chang、Hsin-Kung Mao、Hsin-Hsiung Huang、Shih-Hong Huang、Yi-Chiang Chiu、Jui-Chun Shyur、Ta-Chun Wang、Jen-Liang Lin、Peng-Hong
Chan、Wei-Chia Wang、Cheng-Chiang Wang、Cheng-Hui Su、Tu-Chuan Tu、Chang-Chieh Tien、Guo-Dung Yu、Wei-Chang Chen - 26 positions
12. Chun-Te Shen、Shi-Kuan Chen、Min-Tung Weng、Lo-Chun Lee、Sheng-Hung Li、Bor-Heng Chen、Chung-Hsing Tan、Yong-Ho Su - 8 positions
13. Ming-Chih Chang、Sheng-Hua Peng、Chen-Chang Hsu、Chi-Wai Wan - 4 positions
14.
Jui-Tsung Chen、Chung-Pin Wong - 2 positions
▓ Employee profit sharing granted to the management team
Unit: TWD Thousands
Title
Name
Stock dividends
Cash dividends
Total
Total as a percentage to after-tax profit (%)
43 employees including
CSO Jui-Tsung Chen (Note 1)
Note: 1.Managers’ titles and names
‧Chief Strategy Officer: Jui-Tsung Chen – 1 position
‧President: Chung-Pin Wong – 1 position
0
102,075
102,075
1.0903%
‧Executive Vice Presidents: Ming-Chih Chang, Shen-Hua Peng, Chen-Chang Hsu– 3 positions
‧Senior Vice Presidents: Chun-Te Shen, Kuo-Chuan Chen, Chyou-Jui Wei, Wen-Da Hsu, Shi-Kuan Chen, Chi-Wai Wan, Min-Tung Weng, Lo-Chun Lee, Sheng-Hung Li, Bor-
Heng Chen, Chung-Hsing Tan,– 11 positions
‧Vice Presidents : Chih-Chuan Cheng, Ching-Hsiung Lu, Po-Tang Wang, Tzong-Ming Wang, Fu-Chuan Chang, Yung-Nan Chang, Yong-Ho Su, Jyh-Shyan Liang, Chiao-Lie
Huang, Yi-Yun Chang, Hsin-Kung Mao, Hsin-Hsiung Huang, Shih-Hong Huang, Yi-Chiang, Jui-Chun Shyur, Ta-Chun Wang, Liang-Jen Lin, Peng-Hong
Chan, Wei-Chia Wang, Cheng- Chiang Wang, Cheng-Hui Su, Tu-Chuan Tu, Chang-Chieh Tien, Guo-Dung Yu, Peng Kuee Lau, Yau-De Chiou – 26
positions
‧Other: Po-Wen Hsieh - 1 position
2. Senior Vice Presidents Pei-Yuan Chen, Ying Chang, Wei-Chang Chen and Vice Presidents Shyh -An Lee, Hsiao-Wei Lo resigned in 2020.
3. Employees’ compensation appropriation was approved by the Board of Directors at the March 26, 2021 meeting. The compensations of the aforementioned managers
have not been finalized and will be reviewed based on the list upon the date of distribution.
31
3.2.4 Comparison of Remuneration for Directors, Supervisors, Presidents and Vice Presidents in
the Most Recent Two Fiscal Years and Remuneration Policy for Directors, Supervisors,
Presidents, and Vice Presidents
▓ The percentage of total remuneration paid by the Company and by all companies included in the
consolidated financial statements for the two most recent fiscal years to Directors, supervisors,
presidents, and vice presidents of the Company, relative to net income.
2020
2019 (Note)
Amount
%
Amount
%
Increase (Decrease)
%
Amount
Unit: TWD Thousands
574,044
6.13%
529,830
7.62%
44,214
8.34%
Analysis
Directors
CSO, Presidents,
and
Vice Presidents
Net Income
9,361,893
6,955,899
2,405,994
Note: 2019 is the actual amount.
▓ The policies, standards, and portfolios for the payment of remuneration, the procedures for
determining remuneration, and correlation with business performance.
‧ Remuneration paid by the Company to Directors has been made in accordance with the
Articles of Association. When the Company makes profit in a year, no more than 2% of the
Company’s pre-tax profit (not including remuneration for employees and Directors) shall be
paid to Directors as remuneration along with reasonable compensation based on other
factors such as the Company’s operational performance and the individual Director’s
contribution to the Company’s performance taken into consideration.
‧ The Company’s remuneration policy for Managers has been established based on various
factors, including the Company’s wage policy, the average wage offered by competitors for
the same position, the duties and responsibilities for the position in question, and the
Manager’s actual contribution to the Company’s operational objectives.
‧ The Company’s procedure for determining remuneration not only takes into account the
Company’s overall operational performance but also includes employee’s personal
performance and their contribution to the Company’s performance in order to determine a
reasonable compensation. Relevant wages and compensations are reviewed by the
Remuneration Committee and resolved by the Board of Directors. The Company will also be
keeping a close eye on the latest developments in the global economy, international financial
environment, and state of the industry in order to predict its operational development, profit
status, operational risks and changes in pertinent regulations in the near future in order to
review the compensation system, thereby striving for an ideal balance between the
Company’s sustainable operation and relevant risk control.
32
3.3
Implementation of Corporate Governance
3.3.1 Board of Directors
‧The term of the 13th committee is from June 22, 2018 to June 21, 2021.
‧There were six Board meetings during 2020 (A). Director’s attendance records are
as shown below:
Title
Chairman
Vice
Chairman
Director
Director
Name
Sheng-Hsiung Hsu
Jui-Tsung Chen
Binpal Investment Co., Ltd.
Representative:Wen-Being Hsu
Kinpo Electronics, Inc.
Representative: Chieh-Li Hsu,
Representative: Shyh-Yong Shen
Director
Charng-Chyi Ko
Director
Sheng-Chieh Hsu
Director
Yen-Chia Chou
Director
Chung-Pin Wong
Director
Chiung-Chi Hsu
Director
Ming-Chih Chang
Director
Anthony Peter Bonadero
Director
Independent
Director
Independent
Director
Independent
Director
Sheng-Hua Peng
Min-Chih Hsuan
Duei Tsai
Duh-Kung Tsai
Attendance in
Person (B)
6
6
6
2
0
6
5
5
6
6
4
3
6
4
6
5
By Proxy
0
0
0
0
4
0
1
1
0
0
2
3
0
2
0
1
Attendance Rate
(%)[B/A]
100%
Remarks
Note
Note
100%
100%
100%
0%
100%
83%
83%
100%
100%
67%
50%
100%
67%
100%
83%
Note: Change in representative of the Company’s institutional Director of Kinpo Electronics, Inc., and the former
Shyh-Yong Shen was re-appointed to Chieh-Li Hsu, on July 21, 2020.
‧In 2020, Independent Director’s attendance records are as shown below:
Title
Name
Independent Director
Independent Director
Independent Director
Min-Chih Hsuan
Duei Tsai
Duh-Kung Tsai
1st
Meeting
★
●
●
second
Meeting
●
●
★
3rd
Meeting
●
●
●
4th
Meeting
★
●
●
5th
Meeting
●
●
●
6th
Meeting
●
●
●
Note: ●: Attendance in Person; ★: By Proxy; ◎: Absent
▓ Other notes:
1. For Board of Directors meetings that meet any of the following descriptions, state the date,
session, the discussed topics, Independent Directors' opinions, and how the Company has
responded to such opinions:
(1) Conditions described in Article 14-3 of the Securities and Exchange Act: Not applicable
(the Company has assembled the Audit Committee in place of supervisors)
(2) Any other documented objections or qualified opinions raised by Independent Directors
against board resolutions in relation to matters other than those described above: None.
33
2. Disclosure regarding avoidance of interest-conflicting agendas, including the names of
Directors concerned, the agendas, the nature of conflicting interests, and the voting outcome:
Board of
Directors
Meeting
13th Meeting
(13th Term)
2020.5.13
15th Meeting
(13th Term)
2020.8.12
The agendas, the nature of conflicting interests, and the voting outcome
• Approved the release of non-competition restrictions for the managers
A conflict-of-interest relationship between multiple parties exists among Directors Jui-
Tsung Chen, Chung-Pin Wong and Sheng-Hua Peng. In order to avoid conflict of interest,
these Directors recused themselves from discussion and voting on this proposal. Upon
solicitation of comments by the Chairman of the meeting, no objection was raised and the
resolution was adopted unanimously by the remaining Directors present.
• Approved the first mid-year employees’ bonus of the year 2020
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists between any Directors and
any agenda proposals, such Directors should recuse themselves during discussion of and
voting on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung
Chen, Chung-Pin Wong, Ming-Chih Chang, and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the chairman, no objection was raised and
the resolution was adopted unanimously by the remaining Directors present.
• Approved employees’ salary adjustment of the year 2020
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists between any Directors and
any agenda proposals, such Directors should recuse themselves during discussion of and
voting on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung
Chen, Chung-Pin Wong, Ming-Chih Chang, and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the chairman, no objection was raised and
the resolution was adopted unanimously by the remaining Directors present.
• Approved the proposal for the appropriate percentage for the remuneration of
employees and Directors of the year 2020
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists between any Directors and
any agenda proposals, such Directors should recuse themselves during discussion of and
voting on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung
Chen, Chung-Pin Wong, Ming-Chih Chang, and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the chairman, no objection was raised and
the resolution was adopted unanimously by the remaining Directors present.
• Approved the Directors’ Remuneration for the year 2019
Chairman Sheng-Hsiung Hsu asked the Independent Director Min-Chih Hsuan to act as a
deputy chairman to preside over this meeting for discussion and voting on this proposal.
Since an interested party relationship exists, the Directors (i.e., Sheng-Hsiung Hsu, Jui-
Tsung Chen, Wen Being Hsu, Chieh-Li Hsu, Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia
Chou, Chung-Pin Wong, Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng amd
Anthony Peter Bonadero) recused and excluded themselves from discussion and voting
on this proposal to avoid conflict of interest. Upon solicitation of comments by the
deputy chairman, no objection was raised and the resolution was adopted unanimously
by the remaining Directors present.
• Approved the second mid-year employees’ bonus for the year 2020
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists among any Directors and any
agenda proposals, such Directors shall recuse and exclude themselves during discussion
34
Board of
Directors
Meeting
16th Meeting
(13th Term)
2020.11.12
The agendas, the nature of conflicting interests, and the voting outcome
of and voting on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-
Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting
as managerial officers of Compal, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the chairman, no objection was raised and
the resolution was adopted unanimously by the remaining Directors present.
• Approve the investment in Raypal Biomedical Co., Ltd.
Chairman Sheng-Hsiung Hsu asked Independent Director Min-Chih Hsuan to act as a
deputy chairman to preside over this meeting for discussion and voting on this proposal.
To avoid conflict of interest, Director Chieh-Li Hsu who is also acting as Director of the
Raypal, Director Sheng-Hsiung Hsu, the father-son relationship, who are relatives within
first degree, of kinship of the Director Chieh-Li Hsu of Raypal, Director Jui-Tsung Chen,
the father-son relationship, who is relatives within first degree, of kinship of the Director
Douglass Chen of Raypal, recused and excludedd themselves from discussion and voting
on this proposal in accordance with the Company’s Regulations Governing the
Proceedings of Board of Directors Meetings. Upon solicitation of comments by the
deputy chairman, no objection was raised and the resolution was adopted unanimously
by the remaining Directors present
• Approved the compensation of Employee bonuses in cash of year 2019
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists between any Directors and
any agenda proposals, such Directors shall excuse themselves during discussion of and
voting on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung
Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the chairman, no objection was raised and
the resolution was adopted unanimously by the remaining Directors present.
• Approved the proposal for 2020 year-end employees’ bonus
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists between any Directors and
any agenda proposals, such Directors shall recused themselves from discussion and voting
on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung Chen,
Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, avoided discussion and voting on this proposal. Upon
solicitation of comments by the chairman, no objection was raised and the resolution was
adopted unanimously by the remaining Directors present.
• Approve the investment in ARCE Therapeutics, Inc.
To avoid conflict of interest, Jui-Tsung Chen who is also acting as Director of the ARCE,
recused himself from discussion and voting on this proposal in accordance with the
Company’s Regulations Governing the Proceedings of Board of Directors Meetings. Upon
solicitation of comments by the chairman, no objection was raised and the resolution
was adopted unanimously by the remaining Directors present
3. Self-Evaluation of the Board of Directors:
Evaluation
cycles
Evaluation
periods
Scope of
evaluation
Once a year
From June 1, 2019 to May 31, 2020
Board of Directors, Functional Committees (Including Audit Committee, Remuneration
Committee), individual Directors
35
Method of
evaluation
Internal self-evaluation of Board of Directors and Functional Committees
(Including Audit Committee, Remuneration Committee), Self-evaluation of individual
Directors
◆Criteria for evaluating the performance of the Board of Directors, which should cover
the following five aspects:
1.Participation in the operation of the Company;
2.Improvement of the quality of the Board of Directors' decision making;
3.Composition and structure of the Board of Directors;
4.Election and continuing education of the Directors; and
5.Internal control
Content of
evaluation
◆Criteria for evaluating the performance of the Functional Committees, which should
cover the following five aspects:
1.Participation in the operation of the Company;
2.Awareness of the duties of the Functional Committee;
3.Improvement of quality of decisions made by the Functional Committee;
4.Makeup of the Functional Committee and election of its members; and
5. Internal control.
◆Criteria for evaluating the performance of the individual Directors, which should cover
the following five aspects:
1.Alig nment of the goals and missions of the Company;
2.Awareness of the duties of a Director;
3.Participation in the operation of the Company;
4.Management of internal relationship and communication;
5.The Director's professionalism and continuing education; and
6. Internal control.
4. Enhance the valuation regarding the target achievement and execution by the Board of Directors in the
current and most recent year:
The Company established a “Remuneration Committee” in 2011. During the election of the 11th
Board of Directors and Supervisors at the 2012 annual shareholders’ meeting, three (3)
Independent Directors were elected and appointed to be the committee members of the
Remuneration Committee.
Supervisor positions were replaced with the Audit committee after the 12th Board of Directors
was elected at the 2015 annual shareholders’ meeting.
In 2019, the “Rules and Procedures for Board of Directors Meetings” was amended in accordance
with the “Taiwan Stock Exchange Corporation Operation Directions for Compliance with the
Establishment of Board of Directors by TWSE Listed Companies and the Board's Exercise of
Powers” and “Company Act,” and the Company shall appoint a chief corporate governance officer
to execute corporate governance matters.
In 2020, to implement corporate governance, enhance the Board of Directors function and set up
the performance targets, the “Rules of Self-Evaluation of the Board of Directors and Functional
Committees Performance” was adopted to strengthen their operation efficiency. The performance
of evaluation results for the year 2020, submitted to the Remuneration Committee for analytical
review and reported to the Board of Directors for discussion and improvement, shall be used as
reference in determining individual Director’s compensation and their nomination for a next office
term. The performance evaluation results have been published on the Company's website.
36
3.3.2 Audit Committee
‧The Company’s Audit Committee is composed of three Independent Directors.
‧The term of the 2nd committee is from June 22, 2018 to June 21, 2021.
‧There were four Audit Committee meetings during 2020 (A). The attendance records
of the Independent Directors are as follows:
Title
Name
Convener
Committee Member
Committee Member
Min-Chih Hsuan
Duei Tsai
Duh Kung Tsai
Attendance in
Person (B)
4
4
3
By Proxy
0
0
1
Attendance Rate (%)
[B/A]
100%
100%
75%
Remarks
-
-
-
▓ Duties of the Audit Committee
The Audit Committee exists as an enhancement to the Company's supervisory and
management function. It assists the Board of Directors in various decisions such as review of
financial statements, internal control policies, internal audits, accounting policies and procedures,
major asset transactions, appointment/dismissal/independence/suitability of certified public
accountants, appointment/dismissal of the chief accountant and chief auditor, etc., thereby
ensuring that the Company operates in compliance with the competent authority's instructions
and relevant laws.
▓ The powers of the Committee are as follows:
1. The adoption of or amendments to the internal control system pursuant to Article 14-1 of the
Securities and Exchange Act.
2. Assessment of the effectiveness of the internal control system.
3. The adoption or amendment, pursuant to Article 36-1 of the Securities and Exchange Act, of
the procedures for handling financial or business activities of a material nature, such as
acquisition or disposal of assets, derivatives trading, loaning of funds to others, and
endorsements or guarantees for others.
4. Matters in which a Director is an interested party.
5. Asset transactions or derivatives trading of a material nature.
6. Loans of funds, endorsements, or provision of guarantees of a material nature.
7. The offering, issuance, or private placement of equity-type securities.
8. The hiring or dismissal of a certified public accountant, or their compensation.
9. The appointment or discharge of a financial, accounting, or internal audit officer.
10. Annual financial reports which are signed or sealed by the chairperson, managerial officer,
and accounting officer.
11. Other material matters as may be required by this Company or by the competent authority.
37
▓ The major audit items of the Audit Committee in 2020 were as follows:
1. 2019 Financial Statement
2. To evaluate the CPAs’ independence and competence for performing the financial report audit.
3. Appointment of the Financial Officer
4. Matter bearing on the personal interests of the DDirectors and Managers
5. Material monetary loan
6. Material asset transaction.
7. Assessment of the design and operation effectiveness of the internal control system.
8. Defects, irregularities, and status of corrections in the internal control system.
9. Annual audit plan for year 2021
10. Compliance with the relevant laws and regulations by this Company.
▓ Other notes:
1. The Company should record the date of the Board of Directors’ meeting, the term, content of
discussion, the result of the Audit Committee’s decision and the actions the Company has
taken in response should any of the following situations arise in the operation of the Audit
Committee:
(1) Matters listed in Item 5, Article 14 of the Security Act:
Board of
Directors
Meeting
12th Meeting
(13th Term)
2020.3.30
Content of discussion and actions taken in response
Not approved by the
Matters listed in
Audit Committee but had
Item 5, Article 14 of
the consent of more than
the Security Act
two-thirds of all
1.To approve the Internal Control System Statement for
the year 2019
2.To approve 2019 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
3. To evaluate CPAs’ independence and competence of
performing financial report audit.
V
V
V
Directors.
N.A.
N.A.
N/A.
▲ Resolution adopted by the Audit Committee (2020.3.30):
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in response to opinion of the Audit Committee:
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Directors present.
1 To review and approve the motion to lift the non-
competition restriction for Managers.
2.To approve a fund loan to the 100% owned
subsidiary Compalead Eletrônica do Brasil Indústria
e Comércio Ltda.
V
V
▲ Resolution adopted by the Audit Committee (2020.5.13):
N.A.
N.A.
13th Meeting
(13th Term)
2020.5.13
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in response to the opinion of the Audit Committee:
・Motion 1
An interested party’s relationship existed among Directors Jui-Tsung Chen, Chung-Pin
Wong and Sheng-Hua Peng. In order to avoid conflict of interest, these Directors
recused themselves from discussion and voting on this proposal. Upon solicitation
of comments by the Chairman of the meeting, no objection was raised and the
resolution was adopted unanimously by the remaining Directors present.
‧Motion 2
38
Board of
Directors
Meeting
Content of discussion and actions taken in response
Not approved by the
Matters listed in
Audit Committee but had
Item 5, Article 14 of
the consent of more than
the Security Act
two-thirds of all
Directors.
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Directors present.
1.To approve the appointment of the Financial Officer
2.To approve investment in Raypal Biomedical Co., Ltd.
3.To approve a loan to Henghao Technology Co. Ltd.
4.To approve for a loan to Unicom Global, Inc.
▲ Resolution adopted by the Audit Committee (2020.8.12):
V
V
V
V
N.A.
N.A.
N.A.
N.A.
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in response to the opinion of the Audit Committee:
・Motion 1, 3 and 4
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Directors present.
・Motion 2
Chairman Sheng-Hsiung Hsu asked Independent Director Min-Chih Hsuan to act as a
deputy chairman to preside over this meeting for discussion and voting on this
proposal. To avoid conflict of interest, Director Chieh-Li Hsu who is also acting as
Director of the Raypal, Director Sheng-Hsiung Hsu, the father-son relationship, who is
relatives within first degree, of kinship of the Director Chieh-Li Hsu of Raypal.
Director Jui-Tsung Chen, the father-son relationship, who is relatives within first
degree, of kinship of the Director Douglass Chen of Raypal, recused and excluded
themselves from discussion and voting on this proposal in accordance with the
Company’s Regulations Governing the Proceedings of Board of Directors Meetings.
Upon solicitation of comments by the deputy chairman, no objection was raised and
the resolution was adopted unanimously by the remaining Directors present.
1.To propose for approval of annual audit plan for year
2021
2.A proposal to approve investment in ARCE
Therapeutics, Inc.
V
V
N.A.
N.A.
▲ Resolution adopted by the Audit Committee (2020.11.12):
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in response to opinion of the Audit Committee:
・Motion 1
Upon solicitation of comments by the Chairman, no objection was raised and the
resolution was adopted unanimously by the Directors present.
・Motion 2
To avoid conflict of interest, Jui-Tsung Chen who is also acting as Director of the ARCE,
avoided discussion and voting on this proposal in accordance with the Company’s
Regulations Governing the Proceedings of Board of Directors Meetings. Upon
solicitation of comments by the chairman, no objection was raised and the resolution
was adopted unanimously by the remaining Directors present
15th Meeting
(13th Term)
2020.8.12
16th Meeting
(13th Term)
2020.11.12
(2) With the exception of the aforementioned matter, other matters not approved by the Audit
Committee but had the consent of more than two-thirds of all Directors: None.
39
2. The actions of the Independent Directors with respect to the avoidance of conflict of interest
should be disclosed including the name of the Independent Director, the matter, and the
reasons for the avoidance, and the voting and attendance status: None.
3. Status of communication between Independent Directors, Internal Audit Officer, and CPA:
(1) Method of communication between Independent Directors, the Internal Audit Officer,
and CPA:
• After the Internal Audit Officer has submitted an audit report and follow-up report,
he/she should provide the completed audited items to the Independent Directors for
their review by the end of the following month. Should the Independent Directors
require clarification of the audit and follow-up, they should contact the internal audit
supervisor. The internal auditor shall report the audit results to the Audit Committee on
a quarterly basis and discuss the relevant matters in person with the committee.
• The Independent Directors must communicate with the CPA on a yearly basis through
the Audit Committee or Board of Directors’ Meeting. The CPA shall report to the
Independent Directors on the results of the financial statement audit and other
pertinent legal requirements while the Audit Committee shall also evaluate the
selection, independence, and fitness of the CPA engaged by the Company.
(2) Summary of the communications between Independent Directors and Internal Audit
Officer:
Date
2020.3.30
2020.5.13
Content of discussion
1. Report on operational
status of the internal audit
activities
2.To approve the Internal
Control System Statement
for the year 2019
1. Report on operational
status of the internal audit
activities
2020.8.12
1. Report on operational
status of the internal audit
activities
2020.11.12
1. Report on operational
status of the internal audit
activities
2. To propose for approval of
annual audit plan for year
2021
2021.3.26
1. Report on operational
status of the internal audit
activities
2. To approve the Internal
Control System Statement
for the year 2020
40
Results
The report was reviewed by the Audit
Committee whereupon the Independent
Directors raised no objection or further
instruction.
The proposal was approved by the Audit
Committee and will be decided on by the Board
of Directors
The report was reviewed by the Audit
Committee whereupon the Independent
Directors raised no objection or further
instruction.
The report was reviewed by the Audit
Committee whereupon the Independent
Directors raised no objection or further
instruction.
The report was reviewed by the Audit
Committee whereupon the Independent
Directors raised no objection or further
instruction.
The proposal was approved by the Audit
Committee and will be decided on by the Board
of Directors
The report was reviewed by the Audit
Committee whereupon the Independent
Directors raised no objection or further
instruction.
The proposal was approved by the Audit
Committee and will be decided on by the Board
of Directors
Date
2021.5.12
Content of discussion
1. Report on operational
status of the internal audit
activities
Results
The report was reviewed by the Audit
Committee whereupon the Independent
Directors raised no objection or further
instruction.
(3) Summary of the communications between the Independent Directors and CPA:
Date
2020.3.30
Content of discussion
1. To approve 2019 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
‧ Explanation of key audit items
‧ Financial statements and major accounting
Results
The proposal was
approved by the Audit
Committee and will be
decided on by the
Board of Directors
2021.3.26
items analysis
‧ Description of the Company's self-made
financial report process
1. To approve 2020 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
‧ Explanation of key audit items
‧ Financial statements and major accounting
items analysis
The proposal was
approved by the Audit
Committee and will be
decided on by the
Board of Directors
41
3.3.3 Corporate Governance Implementation and Deviations from the “Corporate Governance Best Practice Principles for TWSE/TPEX Listed Companies”
Actual governance
Deviation and causes of
deviation from the
Corporate Governance
Best Practice Principles
for TWSE/TPEX Listed
Companies
No
Summary description
The Company’s corporate governance principles were approved by the Board of Directors on May
13, 2020, and have been disclosed on its official website and MOPS.
No deviations were
found
The Company has a spokesperson and acting spokesperson that represent the interests of the
shareholders and a unit that specializes in addressing shareholders’ suggestions, queries,
disputes, and litigations.
No deviations were
found
Assessment criteria
Yes
Yes
I. Has the Company established
and disclosed its corporate
governance principles based
on the “Corporate
Governance Best Practice
Principles for TWSE/TPEX
Listed Companies?”
II. Shareholding structure and
shareholders’ interests
1. Has the Company
Yes
implemented a set of internal
procedures to handle
shareholders’ suggestions,
queries, disputes, and
litigations?
2. Is the Company constantly
Yes
The Company keeps track of the identity of its ultimate controllers by monitoring insider
informed of the identities of its
major shareholders and the
ultimate controller?
3. Has the Company established
Yes
and implemented risk
management practices and
firewalls for companies it is
affiliated with?
4. Has the Company established
internal policies that prevent
insiders from trading securities
against non-public
information?
shareholding positions (including that of Directors, supervisors, managers, and shareholders with
more than 10% ownership interest), with the shareholder registry held by the share
administration agency.
The Company has an “Internal Control Policy - Non-trade Activities - Supervision and
Management of Subsidiaries," “Internal Control Policy - Trade Activities – Investment
Management," and “Guidelines on Financial and Business Dealings Between Affiliated
Enterprises” to set up and execute firewalls and risk controls over related parties.
Yes
To prevent insider trading, the “CO10 Insider Trading Prevention Management” and “Insider
Trading Prevention Procedures” have been included as part of the internal control of the Company
and details are published on the intranet and linked to the TWSE website to which employees have
access. Both policies have been included as part of the compulsory e-Learning courses for
departmental heads, and eCSA questionnaires are issued on a yearly basis to facilitate self-
42
No deviations were
found
No deviations were
found
No deviations were
found
Assessment criteria
Actual governance
Yes
No
Summary description
assessment. Insiders such as Directors, supervisors, and managers are given a copy of the TWSE
“Insider Share Trading Manual” when they come aboard to make them aware of the Company
insider rules.
Deviation and causes of
deviation from the
Corporate Governance
Best Practice Principles
for TWSE/TPEX Listed
Companies
III. Assembly and obligations of
the Board of Directors
1. Has the board devised and
implemented policies to ensure
the diversity of its members?
Yes
2. Apart from the Remuneration
Yes
Committee and Audit
Committee, has the Company
assembled other functional
committees at its own
discretion?
3. Has the Company established
Yes
performance evaluation
measures and methods for the
Board of Directors, conducted
performance evaluation
annually and regularly,
reported the results of
performance evaluation to the
Board of Directors and applied
them to the reference of salary
and remuneration of individual
Directors and nomination and
The Company has rules and regulations in place such as the “Corporate Governance Guidelines”
and “Rules for Director Election” to ensure a diversified board member composition in addition
to drafting suitable guidelines for diversification based on the Board’s operation, the Company’s
operating format, and its needs and developments. As such, board members are required to
possess the required knowledge, skills, and character in order to accomplish the goal of ideal
corporate governance. For more information on the diversification of board members, please
refer to page 49.
No deviations were
found
Apart from the Remuneration and Audit Committees, the Company lalso has a CSR Committee
headed by President and CEO Chung-Pin Wong, who in turn reports to the Board of Directors
regarding the operating status and results of the committee on a yearly basis.
No deviations were
found
The Board of Directors adopted the “Rules of Self-Evaluation of the Board of Directors and
Functional Committees Performance” on March 30, 2020. The performance evaluation scope
covers the evaluation of the Board as a whole, individual Directors and Functional Committees.
Methods of evaluations included the Self-Evaluation of the Board of Directors and Functional
Committees, self-evaluation by individual board members, or other appropriate methods. The
evaluation results, being submitted to the Remuneration Committee for analytical review and
reported to the Board of Directors for discussion and improvement, shall be used as reference in
No deviations were
found
43
Assessment criteria
Actual governance
renewal? )
determining individual Director’s compensation and their nomination of next office term.
Yes
No
Summary description
Deviation and causes of
deviation from the
Corporate Governance
Best Practice Principles
for TWSE/TPEX Listed
Companies
▓ The performance of evaluation results in 2020 are as follows:
Items
Individual board members
Board of Directors
Audit Committee
Remuneration Committee
Total average
4.51
4.78
4.95
4.63
Evaluation level
Good
Good
Excellent
Good
4. Is the independence of
Yes
external auditors assessed on a
regular basis?
IV. Is the listed or OTC company
Yes
equipped with competent
and appropriate number of
corporate governance
personnel and has its
designated corporate
governance Director to be
responsible for corporate
governance related matters
(including but not limited to
The CPA issues an “Independent Auditor’s Report” on an annual basis and is required to decline
engagement should he/she be involved in any direct or indirect material interest. The Company
evaluates the independence and suitability of the CPA at least once a year, in accordance with
Article 47 of the CPA Law and Bulletin 10 of the Norms of Ethics for Certified Public Accountants.
The CPA cannot be a Director, supervisor, or shareholder of the Company and may not be on the
payroll or be a related party to the Company. The Company then submits the “CPA Independence
and Fitness Evaluation Form” along with the “Independent Auditor’s Report” to the Audit
Committee for review before it is submitted to the Board of Directors for examination and
discussion. The same principles apply to whenever there is an internal rotation within the
accounting firm.
No deviations were
found
VP Cheng-Chiang Wang has been appointed to lead and supervise affairs pertaining to corporate
governance in accordance with the Company’s “Corporate Governance Guidelines," while the BOD
secretariat was assigned as the Company’s responsible unit for corporate governance to handle
relevant affairs.
No deviations were
found
VP Cheng-Chiang Wang and the designated personnel responsible for corporate governance have
more than 25 years of experience in stock affairs and meeting-related management for publicly
traded companies. They are primarily responsible for handling corporate governance affairs, such
as handling matters relating to board meetings and shareholders meetings according to the laws,
44
Assessment criteria
Actual governance
Deviation and causes of
deviation from the
Corporate Governance
Best Practice Principles
for TWSE/TPEX Listed
Companies
providing information
required by Directors and
supervisors to carry out
business, assisting Directors
and supervisors to comply
with laws and regulations,
managing related matters of
the Board of Directors’
meeting and shareholders'
meeting in accordance with
laws, taking minutes of the
Board of Directors’ meeting
and shareholders' meeting,
etc.)
V. Has the Company provided
proper communication
channels and created
dedicated sections on its
website to address
corporate social
responsibility issues that are
of significant concern to
stakeholders (including but
not limited to shareholders,
employees, customers, and
suppliers)?
VI. Does the Company engage a
share administration agency
to handle shareholder
meeting affairs?
Yes
No
Summary description
producing minutes of board meetings and sareholders meetings, assisting in onboarding and
continuous development of Directors, furnishing information required for duty execution by
Directors and members of the audit committee, ensuring legal compliance and taking other
matters set out in the articles or corporation or contracts, periodically examining and revising the
Company’s corporate governance guidelines and relevant procedures, improving disclosure
transparency, safeguarding shareholder rights and promoting better corporate governance. For
more information on the status of Compal’s corporate governance operations for 2020, refer to
page 42.
Yes
The Company has addressed its stakeholder relations on its corporate website, CSR report, and CSR
Sustainability website. Separate contact persons, phone numbers, and e-mail addresses have been
provided for each type of stakeholder relation to ensure that queries are directed to the relevant
departments. In addition, an online “Material Aspects” questionnaire has also been created for
stakeholders to identify issues that are of significant concern. The Company will address
stakeholders’ responses properly and take their suggestions as part of the Company’s goals.
No deviations were
found
Yes
The Chinatrust Commercial Bank – Securities Trust has been appointed as the share administration
agency responsible for handling shareholder affairs and meetings and for providing share
administration services.
No deviations were
found
45
Assessment criteria
Actual governance
Deviation and causes of
deviation from the
Corporate Governance
Best Practice Principles
for TWSE/TPEX Listed
Companies
Yes
No
Summary description
Yes
The Company website at (www.compal.com) is regularly updated with information such as financial
performance, corporate governance and shareholder meetings
No deviations were
found
Yes
‧The Company website has both Chinese and English pages. The information is gathered and
disclosed by a dedicated department.
‧The Company also has a spokesperson and an acting spokesperson.
‧Investor conferences are held regularly and whenever deemed necessary. The proceedings are
posted on the Company’s website and also broadcast on the TWSE platform (at
https:/www.compal.com/investor-relations/financial-release/).
No deviations were
found
No
The Company financial reports were not able to be announced and filed within two months after
the fiscal year end. However, the date of the Company's announcing and filing financial reports
for the year and the first, second and third quarters, as well as business operational results for
each month were earlier than required by statute.
The Company will
carefully assess the
probability of
announcing and
filing annual financial
reports within two
months after the
fiscal year end.
No deviations were
found
VIII. Does the Company offer
Yes
other vital information
(including but not limited to
employee rights, employee
•
•
•
Employee rights and care for employees (page 51)
Code of conduct for Directors, managers, and employees (page 51~ 52)
Investor relations (page 52)
46
VII. Information disclosure
1. Has the Company established a
website that discloses financial,
business and corporate
governance-related
information?
2. Has the Company adopted
other means to disclose
information (e.g. an English
website, assignment of specific
personnel to collect and
disclose corporate information,
implementation of a
spokesperson system,
broadcasting of investor
conferences via the Company
website)?
3. Does the Company announce
and declare the annual
financial report within two
months after the end of the
fiscal year and announce and
declare the first, second, and
third quarter financial reports
and the operation of each
month ahead of the required
time limit?
Actual governance
Deviation and causes of
deviation from the
Corporate Governance
Best Practice Principles
for TWSE/TPEX Listed
Companies
Yes
No
Summary description
•
•
•
•
•
•
•
Supplier relations and execution of customer policy (page 52)
Stakeholders’ interests (page 52)
Risk management practice and framework (page 52-54), Risk analysis (page 172-177)
Purchasing liability coverage for the Company’s Directors, supervisors, and managers (page
55)
Continuing education for Directors and managers (page 55-57)
Succession plan for Board members and key Management team (page 58)
Certificate and qualification acquisition status for personnel (page 58)
Assessment criteria
care, investor relationships,
supplier relationships,
stakeholders’ interests,
continuing education of
Directors/supervisors, risk
management policies, risk
assessment standard
implementation status,
implementation status of
customer policies, insuring
against liabilities of company
Directors and supervisors)
that would enable a better
understanding of the
Company’s corporate
governance practices?
47
Assessment criteria
Actual governance
Deviation and causes of
deviation from the
Corporate Governance
Best Practice Principles
for TWSE/TPEX Listed
Companies
Yes
No
Summary description
IX. State the improvements that have been made with regard to the results of the latest Corporate Governance Evaluation conducted by TWSE in the most recent year.
For items that have yet to be improved upon, state the Company’s priorities and measures for improvement.
• With regard to the further education of Directors (including Independent Directors), Compal has advocated and encouraged Directors to take part in courses on the
pertinent regulations offered by subsidiary Kinpo Group Management Consultant Company or training provided by external professional organizations. In 2020,
members of the Board of Directors completed a total of 48 hours of training.
• In 2020, with setting forth a performance target to improve the operation efficiency of the Board of Directors, the "Rules of Self-Evaluation of the Board of
Directors and Functional Committees Performance” was adopted., In addition, the enactment to the "Employee Integrity Code" has made and the amendment to
the "Rules and Procedures for Board of Directors Meetings", "Audit Committee Charter", "Remuneration Committee Charter", "Corporate Governance Best Practice
Principles" and "Corporate Social Responsibility Best Practice Principles" are completed to accommodate the business needs and the requirements of applicable
laws and regulations.
• In 2021, the amendment to the “Regulations for Election of Directors", “Rules Governing the Scope of Powers of Independent Directors", “Remuneration Committee
Charter", “Procedures for Ethical Management and Guidelines for Conduct" and “Rules Governing Financial and Business Matters Between this Company and its
Affiliated Enterprises" were proposed to accommodate the business needs and the requirements of applicable laws and regulations.
• In the “7th Round of Corporate Governance Evaluations” by TWSE, Compal was placed in the top 6%~20% listed companies.
•Upload the English version of Annual Report and Annual Financial Statements 16 days before the shareholders’ meeting.
48
Operation
management
Leadership
and decision-
making
Knowledge
of the industry
International
market
perspective
Risk
Management
Finance
and accounting
Investment
M&A
Communications
and network
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Director
Independent Director
V
▓ Status of board member diversification
Core items for
diversification
Name of Director
(Note)
Sheng-Hsiung Hsu
Jui-Tsung Chen
Representative of Binpal Investment
Co., Ltd.: Wen-Being Hsu
Representative of Kinpo Electronics
Inc.: Chieh-Li Hsu
Charng-Chyi Ko
Sheng-Chieh Hsu
Yen-Chia Chou
Chung-Pin Wong
Chiung-Chi Hsu
Ming-Chih Chang
Anthony Peter Bonadero
Sheng-Hua Peng
Min-Chih Hsuan
Duei Tsai
Duh-Kung Tsai
Item
31 ~ 50 years old
51~65 years old
65 years and over
Male
Female
Republic of China
United States
Age
Gender
Country of
Citizenship
Employee Status (Note)
1
5
6
12
0
11
1
5
0
0
3
3
0
3
0
0
49
Note: Concurrently an employee of the Company, subsidiaries companies.
▓ The status of Compal’s corporate governance operations for 2020 is as follows:
‧ The Company compiled and prepared relevant documents needed for the Audit Committee and the Board of
Directors’ Meetings in accordance with pertinent regulations and operational/financial needs; and be
responsible for coordination of relevant units and coordination of proposal making from different relevant units.
‧ With setting a performance target to improve the operation efficiency of the Board of Directors, the "Rules of
Self-Evaluation of the Board of Directrs and Functional Committees Performance” was adopted. In addition, the
enactment to the "Employee Integrity Code" has made and the amendment to the “"Rules and Procedures for
Board of Directors Meetings", "Audit Committee Charter," "Remuneration Committee Charter", "Corporate
Governance Best Practice Principles" and "Corporate Social Responsibility Best Practice Principles" are
completed to accommodate the business needs and the requirements of applicable laws and regulations, all of
which have been submitted to the Board of Directors for approval.
‧ The performance evaluation of Directors and Independent Directors, the Board of Directors, the audit
committee, and the remuneration committee are submitted to the Board of Directors.
‧ The Company planned the communication meeting between Independent Directors, Internal Audit Supervisors
and CPA to have the Audit Committee determine the independence and fitness of the CPA engaged by the
Company as a measure to ensure sound corporate governance.
‧ Pursuant to “Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE
Listed and TPEx Listed Companies”, Compal has advocated and encouraged Directors to take part in courses
on pertinent regulations offered by subsidiary Kinpo Group Management Consultant Company or by external
professional organizations.
‧ The Company disclosed and announced important information in conjunction with Board of Directors
Meetings, Shareholders Meetings, financial and sales information; in addition, the Company has also held
investor conferences at least two times annually, and has been invited to attend domestic/overseas investor
conferences to help investors better understand the Company’s status of operation.
‧ The Company registered the date for Shareholders Meetings as required by law; prepared meeting
notifications within the scheduled deadline, meeting handbook and meeting minutes and filing; coordinated
relevant units, agents for stock affairs, CPA, attorneys and so forth.
‧ Contents on the chapter for corporate governance – responsible for the collection of data, compilation of
stock affairs data, coordination of different units and editing.
‧ Corporate governance evaluation – responsible for the collection of data, plan setting, compilation of stock
affairs data, coordination of different units and website maintenance.
‧ The Company has taken out liability insurance for its Directors, supervisors and managers. The amount for
their liability insurance in 2020 came to USD 50,000,000, which was roughly equivalent to TWD 1,440,500,000.
Vital information relating to their liability insurance was reported to the Board of Directors on the nearest
meeting of the Board of Directors.
‧ The Corporate Governance Officer took 15 hours of continuing education. The exact education program,
please see page 57.
50
X. Other vital information on the operating status of corporate governance:
▓ Employees' rights and care for employees
Compal respects employees' rights and tends to their needs. Internal policies are updated constantly to reflect
the latest labor regulations, and published to ensure understanding and compliance from employees.
Compal's subsidiaries in the USA, China, Brazil, Vietnam, and India have all established employment guidelines
in accordance with local labor regulations, and all terms of employment are compliant with the laws of the
local countries and regions.
The Company's support for equal work opportunities and respect for employees' freedom of association have
led to the assembly of a union at the Kunshan Factory. Employees are offered equal compensation for equal
work, whereas salary details are approved based on the nature of work involved and individual performance.
The Company has nursery rooms available throughout the organization. It actively prevents and resolves
workplace unlawful infringement incidents, grants workers the break and overtime pay they deserve,
purchases social insurance coverage, and contributes to employees' pension funds.
Compal is committed to creating communication platforms where employees may exchange opinions and
information. A “Sunshine Group” and hotlines have been set up at all plant sites and are run by
compassionate people who promptly respond to employees' thoughts. By providing employees with the
means to express feelings and complaints, the Company is able to help employees resolve difficulties in a
timely manner. In an attempt to create a joyful work environment where talents are assigned to suitable
positions, Compal publishes recruitment information internally and offers employees the freedom to choose
or transfer to positions they consider suitable, and thereby assures satisfaction across the work force and
protects employees' interest.
Compal provides employees with the following health-related facilities and services outside of work:
‧
‧
‧
Common dining: Employee dining facilities have been made available to serve nutritious and healthy foods.
Recreation center: Places where employees may hold club activities, exercise, and make friends.
Spiritual, health, and arts seminars: The Company organizes health seminars, spiritual seminars, musical
performances, and art exhibitions from time to time, and uses them as a means of stress relief to cater to
employees' physical and mental health.
Infirmary and stationed physicians: Employees may consult physicians and access timely medical
assistance for them and their family members.
Employee assistance services are available. Employees can consult with consultants on work, family,
relationships, physical and mental health, mental illness, finance, legal, and management issues through a
dedicated line or E-mail.
‧
‧
▓ Codes of conduct for Directors, managers, and employees
Compal has established an ethics policy as described below to enforce business integrity and to guide
employees toward complying with laws and ethics for the protection of Compal's and stakeholders' assets,
interests, and reputation:
‧ Comply with government regulations.
‧ Protect the interests of employees, customers, shareholders, suppliers, communities, and relevant
organizations.
‧ Uphold business integrity and the principles of fair trade, fair advertising, and fair competition. Refrain
from making illicit gains. Make information transparent to stakeholders while at the same time respecting
intellectual property rights, privacy, and identity protection. Prohibit retaliation and make responsible
purchase of minerals.
‧ Continually improve, execute, and convey the Company's ethics policy to relevant organizations.
In addition to implementing an ethics policy, Compal has also established a Human Resource Management
Policy, Director and Manager Code of Conduct, and Employee Code of Conduct not only in the employees'
best interest, but also to communicate with stakeholders about the moral standards and behavioral
guidelines that employees are bound to obey when carrying out their duties. All employees are required to
51
sign a "Confidentiality Commitment Letter" when coming on board, which is a declaration to abide by the
Company's rules, the Human Resources Management Policy and to maintain confidentiality of the
Company's business secrets.
▓ Investor relations
The Company has an Investor Relations Department which handles shareholders' recommendations. The
department bridges communication between the Company and its investors. In addition to hosting investor
seminars on a regular and ad-hoc basis, the department has also created an Investor Relations section on the
Company's website to facilitate complete and fair disclosure of Compal's latest progress, and thereby provide
investors with full understanding of the Company's business performance and long-term goals.
Despite being impacted by COVID-19 epidemic in 2020, Compal proactively participated in online investor
forums and investor conference calls, hosted by brokers every quarter, 8 events in total, to regularly update
its financial results and business progress to shareholders and investors, which to enhance investors
understanding for the Company operation and increase the communication and engagements.
▓ Supplier relations and execution of customer policy
The Company signs contracts with all suppliers and customers not only to protect the interests of both parties,
but also to maintain a strong working relationship.
With respect to green products and parts, the Company coordinates closely and systematically with partnered
suppliers, and follows a robust review and certification process to ensure effective communication, tracking,
management, and elimination of parts that contain prohibited chemical substances. Every supplier and
business partner is able to inquire about the latest "Compal Environmental Management Standard for Parts
and Materials" through the SDCP (Supplier Design Cooperation Portal: sdcp.compal.com)/GPMS (Green
Product Management System). They are also required to provide assurance that all raw materials supplied are
free of substances that may harm the environment.
The Company's R&D, production and quality assurance departments and all major customers are able to learn
information concerning chemical composition and content of green products through the use of this system,
and take measures such as sample testing and on-site inspection as deemed necessary.
The Company operates throughout Europe, America, and Asia, and has service centers at main business
locations to provide customers with safe and high-quality products, as well as complete and correct product
information. The Company addresses customer complaints actively and immediately. It accepts customers'
audit requests, participates in customers' activities, and handles critical correspondences in a confidential
manner. The Company has always been protective of customers' secrets. It has firewalls in place to block
exchange of confidential information between customers, teams, office areas, and factories. A specialized
team monitors the security of network information from time to time for the protection of customers'
interests. Meanwhile, all employees are required to sign a confidentiality agreement that prohibits them from
openly discussing customers' details. It is the organization's goal to provide customers with the most
comprehensive service network and the best protection anywhere in the world. There has been no violation
of law concerning the offering and use of products or services.
▓ Stakeholders' interests
Stakeholders are able to communicate with and make suggestions to the Company for the protection of their
interests. The Company provides safe and high-quality products along with complete and accurate product
information to customers. Customers' complaints are addressed immediately.
▓ Risk management
1. Risk management practice
(1) One of the purposes of the risk management policy is to discover any risk factors in advance that might
adversely affect operations, so that the Company may then apply appropriate assessments and
treatments to transfer risks and mitigate or prevent losses. Another purpose is to enable timely detection
and warning of changes in the internal and external environment, and thereby allow employees
52
worldwide to execute risk management practices within their areas of responsibility in a timely manner.
The Company has its own financial, sales, and accounting system, and a system for monitoring financial
and business information of its subsidiaries in accordance with "Regulations Governing the Establishment
of Internal Control Systems by Public Companies". The Company has also guidelines in place for supplier
management, customer relations, R&D, human resources, financial affairs, credit/endorsement/
guarantee arrangements with affiliated businesses, and acquisition/disposal of key assets. These policies,
risk assessment standards, and procedures serve as a guideline by which employees may abide for risk
assessment and management. Dedicated personnel have been appointed in every department to
manage, control, minimize, and prevent Company risks.
(2) The Internal Control System developed by the Company is distinguished between the Overall Level and
Operation Level. Five elements (Control Environment, Risk Assessment, Control Operation, Information
and Communication, Supervision) have been incorporated into each transaction cycle at the operation
level. In recent years, the Company has made enhancements to corporate risk management based on
the latest Regulations Governing Establishment of Internal Control Systems by Public Companies,
corporate governance practice, internal audit theory, technology, and various codes of conduct by
adopting robust risk detection, assessment, reporting, handling, and prevention measures.
The Company's risk control mechanism operates on three levels:
‧
involves heads of various divisions
The first level involves the organizer or handling officer, who is responsible for risk discovery,
assessment and control at first contact, as well as designing preventive measures against risks.
The second
(offices), headquarters, business
departments/centers and regional business groups/centers, Executive Vice Presidents and the
President. This level comprises members of the senior management, who are responsible for
assessing the feasibility of various operations as well as identifying, handling, and preventing
operational risks.
The third level involves review by Legal Affairs, Auditing Office, Board of Directors, and Audit
Committee. The Company involves all employees as part of the risk management system and
implements layered controls over day-to-day operations.
level
‧
‧
(3) From the implementation perspective, all the divisions of the Company evaluate various business risks
to make contingency plans, while preparing annual budget and work plan. At the same time, the internal
audit office drafts the annual audit plans for the coming year based on the risk assessment of operating
activities. The annual audit plan is implemented after approval by the Board of Directors, and the
execution status is also reported to the Board of Directors. Given the Company's role as an ODM for 5C
electronics, we review and assess business risks on an annual basis, and reflect our findings in the
financial statements under accounts such as allowance for doubtful debts, warranty reserves, and
royalties. All provisioning policies are submitted to the CPA for review whenever adjustments are made.
This is to ensure that financial reports present a fair view of the Company's operations. Furthermore, the
Company has dedicated personnel appointed to monitor and control exchange rate risks, and take
hedging measures as necessary (please refer to page 172).
(4) If an important operating activity is identified with a potential urgent risk, it can be reported to the
supervisor immediately for proper prevention. For extremely important matters, such as investments or
engineering project bidding, will be jointly reviewed by relevant departments. Audits will be performed
on a regular or irregular basis.
53
2. Risk management framework
Key risk areas
‧ Interest rate, exchange rate,
inflation and financial risks
‧ High-risk or highly leveraged
investment, loan to third party,
endorsement, guarantee, trading
of derivatives and treasury
investment
‧ R&D planning
‧ Changes in policy and law
‧ Changes in technology and
industry
‧ Changes in corporate image
‧ Investment, subsidiary and
MandA benefits
Front line unit
(Business organizer)
(Level 1)
Risk review and control
(Executive management
meeting)
(Level 2)
‧ Finance Department ‧ Operation Team
Board of Directors, Audit
Committee, Legal Affairs
Office, Auditing Office
(Level 3)
‧ Legal Affairs Office:
Oversees legal affairs
and makes suggestions
on risk identification,
assessment and
prevention
‧ Business
‧ Corporate investment
departments/centers
(Note 1)
review
‧ Executive management
‧ Common departments
meeting
(Note 3)
‧ Subsidiaries monitoring
and management report
‧ Auditing Office:
Risk inspection,
evaluation,
supervision,
improvement and
reporting
‧ Board of Directors,
Audit Committee:
Decision-making and
ultimate control over
risk evaluation
‧ Expansion of factory, production
‧ Business
‧ Monthly operating
site and equipment
‧ Centralized purchase or sale
departments/centers
(Note 1)
meeting
‧ Production and marketing
‧ Common departments
meeting
(Note 3)
‧ Equity transfer involving
‧ Share administration
‧ Share administration
Directors, supervisors, and major
shareholders
‧ Change of management
‧ Litigation and non-contentious
cases
affairs
‧ Board of Directors
affairs
‧ Head of
‧ Product risk
management
Finance/Accounting
‧ Legal affairs
‧ Business groups/centers
‧ Handling of product safety
‧ Managers of all levels
(Note 2)
incidents
‧ Other operational affairs
‧ Personnel behaviors, ethics, and
conduct
‧ Rules (including SOP), internal
control system and compliance
with regulations
‧ Managers of all levels
‧ HR and Administration
‧ Managers of all levels ‧ Legal Affairs Office
‧ Personnel Evaluation
Committee
‧ Investment Planning and
Management Office
‧ Auditing Office
‧ Finance
‧ Accounting
‧ HR and Administration
‧ IT
‧ Board of Directors Meetings
‧ Share administration
affairs
‧ Secretary of the Board
of Directors
‧ Legal Affairs Office
‧ Auditing Office
‧ Prevention of insider trading
‧ Managers of all levels ‧ Insider Trading Prevention
‧ Information security
‧ Managers of all levels ‧ Information Security
Office
management
(ISMS) Committee
‧ Information Security Team
Notes: 1. Business departments/centers: America/Europe, Asia Pacific, Operations, Enterprise Products, Auto Electronics, Creativity,
Quality Assurance, Procurement, R&D, Manufacturing, and Sales, etc.
2. Business groups/centers: PC Business Group, Smart Devices Business Group, Global Operations, etc.
3. Common departments: Finance, Accounting, HR and Administration, Investment Planning and Management Office, Legal
Affairs Office, etc.
54
▓ Purchasing liability coverage for the Company’s Directors, supervisors, and managers
Since 2002, the Company has purchased liability insurance for its Directors, supervisors, and
managers. The summary of the insurance policies purchased in 2020 are listed as follows:
Insured Individuals
Directors,
Supervisors and
Managers
Insured amount
USD 50,000,000
(Equivalent to TWD
1,440,500,000)
Insured Period
From:2020.11.21
To: 2021.11.21
Date of submission to
the Board of Directors
2021.2.25
▓ Continuing education for Directors and managers
All Directors and managers possess relevant professional knowledge and skills. In addition to
offering relevant information both on a regular and intermittent basis to Directors and managers,
the Company would also organize seminars and workshops when deemed necessary. Training
completed by Directors and managers in 2020 include:
▓ Continuing education for diectors:
Date of
training
2020.06.16
Chairman
Name
Title
Sheng-Hsiung
Hsu
Organized by
Course title
Accounting Research and
Development Foundation
Common corporate governance deficiencies in
enterprises and analysis of related laws and
regulations
Hours of
training
3
Jui-Tsung Chen 2020.10.16
Compal Electronics, Inc. Changes in the world economy after the 2020
Vice
Chairman
2020.12.10
Director
Chieh-Li Hsu
2020.04.23
Accounting Research and
Development Foundation
Taiwan Corporate
Governance Association
2020.08.06
Taiwan Corporate
Governance Association
2020.08.06
Taiwan Corporate
Governance Association
United States presidential election
Assist the Company to improve its ability to
prepare financial reports independently
Augmented reality technology and smart
manufacturing;
Sino-US Silicon Crystal Group (Global Wafer)
shares the experience of growth through
mergers and acquisitions
Sino-US Silicon Crystal Group (Global Wafer)
shares the experience of growth through
mergers and acquisitions
The new digital reality in the post-epidemic era;
the latest development trend of AIoT and its
application in smart manufacturing
Key of global political and economic trends and
financial market outlook in the second half of
2020
United States presidential election
Unconventional transactions that Directors and
supervisors should pay attention to in practical
issues
Operational Practice of Audit Committee
Discussion on the Management of Intellectual
Property from the Perspective of the Board of
Directors
1
6
3
3
3
2
1
1
1
3
3
3
Sheng-Chieh
Hsu
2020.07.24
2020.10.16
Kinpo Group
Management Consultant
Company
Compal Electronics, Inc. Changes in the world economy after the 2020
2020.10.16
Compal Electronics, Inc. Changes in the world economy after the 2020
United States presidential election
2020.10.16
Compal Electronics, Inc. Changes in the world economy after the 2020
United States presidential election
Director
Director
Director
Director
Independent
Director
Chung-Pin
Wong
Ming-Chih
Chang
Sheng-Hua
Peng
Min Chih
Hsuan
2020.08.12
Taiwan Corporate
Governance Association
2020.08.12
Independent
Director
Duei Tsai
2020.08.05
Taiwan Corporate
Governance Association
Securities and Futures
Institute
55
Title
Name
Date of
training
2020.09.30
2020.10.16
2020.10.21
Independent
Director
Duh Kung Tsai 2020.11.05
2020.11.05
Organized by
Course title
Taiwan Corporate
Governance Association
Taiwan Corporate
Governance Association
Taiwan Corporate
Governance Association
Taiwan Corporate
Governance Association
Taiwan Corporate
Governance Association
Discussion on the disputes of management
rights from shareholder activism
Corporate Governance and Corporate Integrity
program in Directors and Supervisors Promotion
Conference
Integrity Management and ISO 37001
The impact of the latest tax law reform on
corporate operations and its response (part 1)
The impact of the latest tax law reform on
corporate operations and its response (part 2)
Hours of
training
3
3
3
3
3
56
▓ Continuing education for managers
Title
Name
Date of
training
Organized by
Course title
Vice President Guo-Dung Yu
2020.01.31 Compal Electronics, Inc.
Executive Vice
President
Senior Vice
President
Senior Vice
President
Sheng-Hua
Peng
Chung-Hsing
Tan
Wen-Da Hsu
2020.12.31 Compal Electronics, Inc.
2020.12.31 Compal Electronics, Inc.
2020.12.31 Compal Electronics, Inc.
Vice President Yi-Yun Chang
2020.12.31 Compal Electronics, Inc.
Vice President
Chiao-Lie
Huang
2020.12.31 Compal Electronics, Inc.
Vice President Wei-Chia
2020.12.31 Compal Electronics, Inc.
Wang
Vice President Hsin-Hsiung
2020.12.31 Compal Electronics, Inc.
Huang
Vice President Peng Kuee Lau 2020.12.31 Compal Electronics, Inc.
Accounting
Officer
Cheng-Chiang
Wang
2020.12.24~
2020.12.25
Accounting Research and
Development Foundation
Corporate
Governance
Officer
Cheng-Chiang
Wang
2020.02.18 Taiwan Corporate Governance
Association
2020.03.06 Taiwan Corporate Governance
Association
2020.12.24 Accounting Research and
Development Foundation
2020.12.25 Accounting Research and
Development Foundation
2020.12.25 Accounting Research and
Development Foundation
2021.01.18 Accounting Research and
Development Foundation
2021.01.19 Accounting Research and
Development Foundation
Internal Audit
Officer
Powen Hsieh
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
Management for the prevention of
insider trading (Senior managers)
“Training program for the new
Accounting Officer”
The class for the new Accounting
Officer, requested due to the
company share exchange/transaction
on public place.
Functions and tasks of corporate
governance personnel under the
corporate governance blueprint
Shareholders meeting planning and
case study
Strategy and Implementations of
Employees Compensation
Protection and legal liability in
Intellectual Property Rights
Practices in Compliance with the
Designation of the Company Secretary
How the internal auditor applies the
technical of digital forensics into the
business secret protection and
investigation
The policy analysis and internal control
management practices of assisting
companies to improve the capabilities
of self-preparing financial report
Hours of
training
0.58
0.58
0.58
0.58
0.58
0.58
0.58
0.58
0.58
12
3
3
3
3
3
6
6
57
▓ Succession plan for Board members and key Management team
Compal launched the succession plan for Board members and the key management team in 2018. The former
President Jui-Tsung Chen was promoted to the position of Vice Chairman and Chief Strategy Officer of the
Company, responsible for the Company’s long-term strategy development and implementation. The
President's position was taken by Executive VP Chung-Pin Wong, who joined Compal in 1989 and has full
experience in various positions, such as marketing, procurement, sales, etc. In addition, Anthony Peter
Bonadero, Sheng-Hua Peng, and Ming-Chih Chang were promoted from Senior VP to Executive VP positions
and were appointed to lead the three business group: PCBG, SDBG, and GOBG, separately. They were also
elected as the 13th Board of Directors in 2018. By this, Compal has successfully completed the succession of
the Board members and the key management team that symbolizes transition into a new generation.
In response to the future growth, the Company will continue to invest in the talents and promote the key
management team’s experience sharing and inheritance, through the arrangement of the regular “Group
General Managers Meetings” and “Executive Management Meetings." This plan and mechanism will enable
the Company to achieve its long-term sustainability goals.
▓ Certificate and qualification acquisition status for personnel involved in financial information
Name of certificate
No. of persons
6 persons
2 persons
1 person
8 persons
4 persons
3 persons
3 persons
2 persons
2 persons
1 person
transparency
CPA qualification
USCPA qualification
ASEANCPA qualification
Senior Securities Specialist
Securities Specialist
Futures Specialist
Securities Investment Trust and Consulting Professional
Certified Internal Auditor - Taiwan
Certified Internal Auditor
Chartered Financial Analyst
58
3.3.4 Composition, Responsibilities, and Operations of the Remuneration Committee
1. Professional Qualifications and Independence Analysis of Remuneration Committee Members
Having work
experience in
the areas of
commerce,
law, finance, or
accounting, or
otherwise
necessary for
the business of
the Company
Having Met One of the Following Professional
Qualifications, Together with at Least Five Years
Work Experience
A judge, public
prosecutor,
attorney,
Certified Public
Accountant, or
other
professional or
technical
specialist who
has passed a
national
examination and
been awarded a
certificate in a
profession
necessary for
the business of
the Company
An instructor
or higher
position in a
department of
commerce,
law, finance,
accounting, or
other
academic
department
related to the
business needs
of the
Company in a
public or
private junior
college,
college or
university
Independence Criteria
(Note 2)
1 2 3 4 5 6 7 8
9
10
Number of
Other Public
Companies in
Which the
Individual is
Concurrently
Serving as an
Remuneration
Committee
Member
Remarks
✔
✔
✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
✔
✔
✔
✔
✔
✔
0
2
1
-
-
-
Criteria
Title
(Note 1)
Name
Independent
Min-Chih
Director
Hsuan
Independent
Director
Duei Tsai
Independent
Duh-Kung
Tsai
Director
Note: If the Director or supervisor meets the following conditions in the two years before the election and during the term of office, please
mark “✔” in the space below each condition code.
(1) Not an employee of the Company or its affiliated enterprises.
(2) Not a Director or supervisor of the Company or its affiliated enterprises (except for concurrent Independent Directors of the Company
and its parent company, subsidiaries, or subsidiaries of the same parent company in accordance with this Act or local laws and regulations).
(3) A natural person shareholder who or whose spouse or minor children or in another person’s name does not hold more than 1% of the
total issued shares of the Company or is not a top-ten shareholder.
(4) Not a manager in (1) the spouse, second-tier relatives, or third-tier relatives of the persons listed in (2) or (3).
(5) A Director, supervisor, or employee of a corporate shareholder who does not directly hold more than 5% of the total issued shares of the
Company or is a top-five shareholder or is designated as a representative to serve as a Director or supervisor of the Company in
accordance with paragraph 1 or 2 of Article 27 of the Company Act (except for concurrent Independent Directors of the Company and its
parent company, subsidiaries, or subsidiaries of the same parent company in accordance with this Act or local laws and regulations).
(6) A Director, supervisor, or employee of another company who does not have a seat on the Board of Directors or more than half of the
shares with voting rights are controlled by the same person of this company (except for concurrent Independent Directors of the Company
and its parent company, subsidiaries, or subsidiaries of the same parent company in accordance with this Act or local laws and regulations).
(7) A Director, supervisor, or employee of another company or institution who is not the same person or spouse as the Chairman, President,
or an equivalent position of the Company (except for concurrent Independent Directors of the Company and its parent company,
subsidiaries, or subsidiaries of the same parent company in accordance with this Act or local laws and regulations).
(8) A Director, supervisor, or manager of another company or institution which does not have financial or business dealings with the Company
or a shareholder holding more than 5% of the shares of the Company (not applicable if the Company or institution holds more than 20%
but no more than 50% of the total issued shares of the Company, with concurrent Independent Directors of the Company and its parent
company, subsidiaries, or subsidiaries of the same parent company in accordance with this Act or local laws and regulations).
(9) A professional, sole proprietor, partner, business owner or partner, Director, supervisor, manager, or the spouse of the above of a company
or institution which does not provide audit services to the Company or its affiliated enterprises or the cumulative remuneration amount
of which in the past two years does not exceed TWD 500,000 for business, legal affairs, finance or accounting related services. However,
this does not apply to the members of the remuneration committee, public takeover review committee, or special merger and acquisition
committee who perform their functions in accordance with the Securities and Exchange Act or the Business Mergers and Acquisitions
Act. .
(10) There are no such circumstances as in Article 30 of the Company Act.
59
2. Attendance of Members at Remuneration Committee Meetings
• The Company's Remuneration Committee is composed of three Independent Directors.
• The term of the 4th committee is from July 4, 2018 to June 21, 2021.
• There were four Remuneration Committee meetings during 2020(A) and the committee member
qualifications and attendance records are as follows:
Title
Name
Convener
Committee Member
Committee Member
Min-Chih Hsuan
Duei Tsai
Duh-Kung Tsai
Attendance in
Person (B)
4
4
3
By Proxy
0
0
1
Attendance Rate (%)
[B/A]
100%
100%
75%
Remarks
-
-
-
■ Functions and Tasks of the Remuneration Committee
• Prescribe and periodically review the performance review and remuneration policy, system,
standards, and structure for Directors/Independent Directors, and managerial officers.
• Periodically evaluate and prescribe the remuneration of Directors/Independent Directors, and
managerial officers.
"Remuneration" as used in the preceding two paragraphs includes cash compensation, stock options,
profit sharing and stock ownership, retirement benefits or severance pay, allowances or stipends of any
kind, and other substantive incentive measures.
■ The discussion of the salary and Remuneration Committee and the outcome of the resolution, as well
as the actions the Company has taken in response should any of the situations arise in the operation
of the Remuneration Committee.
Board of
Directors
Meeting
12th Meeting
(13th Term)
2020.3.30
13th Meeting
(13th Term)
2020.05.13
Resolution Adopted by the Remuneration Committee
1. To approve the distribution of compensation to employees and Directors for 2019
▲ Resolution Adopted by the Remuneration Committee (2020.3.30):
Upon solicitation of comments by the Chairman, no objection was raised and the resolution
was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in Response to the opinion of the Remuneration
Committee:
Upon solicitation of comments by the Chairman, no objection was raised and the resolution
was adopted unanimously by the Directors present.
1. To approve the percentage of compensation to employees and Directors for 2020
2. The 1st mid-year bonus of 2020
3. Salary adjustment of 2020
▲ Resolution Adopted by the Remuneration Committee (2020.5.13):
Upon solicitation of comments by the Chairman, no objection was raised and the resolution
was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1 ~3:
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists between any Directors and any
agenda proposals, such Directors shall recuse themselves from discussion of and voting on
those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung Chen,
Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as managerial
officers of Compal, avoided discussion and voting on this proposal. Upon solicitation of
60
Board of
Directors
Meeting
15th Meeting
(13th Term)
2020.8.12
16th Meeting
(13th Term)
2020.11.12
Resolution Adopted by the Remuneration Committee
comments by the chairman, no objection was raised and the resolution was adopted
unanimously by the remaining Directors present.
1. To approve the Directors' remuneration of 2019
2. To approve the second mid-year bonus of 2020
▲ Resolution Adopted by the Remuneration Committee (2020.8.12):
Upon solicitation of comments by the Chairman, no objection was raised and the resolution
was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1:
Chairman Sheng-Hsiung Hsu asked the Independent Director Min-Chih Hsuan to act as a deputy
chairman to preside over this meeting for discussion and voting on this proposal. Since an
interested party relationship exists, the Directors (i.e., Sheng-Hsiung Hsu, Jui-Tsung Chen, Wen
Being Hsu, Chieh-Li Hsu, Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia Chou, Chung-Pin Wong, Chiung-
Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng amd Anthony Peter Bonadero) recused and excluded
themselves from discussion and voting on this proposal to avoid conflict of interest. Upon
solicitation of comments by the deputy chairman, no objection was raised and the resolution was
adopted unanimously by the remaining Directors present.
・Motion 2:
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists between any Directors and any
agenda proposals, such Directors shall excuse themselves during discussion of and voting
on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung Chen,
Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as managerial
officers of Compal, recused themselves from discussion and voting on this proposal . Upon
solicitation of comments by the chairman, no objection was raised and the resolution was
adopted unanimously by the remaining Directors present.
1. To approve employee compensation in cash of 2019
2. To approve the year-end bonus payment of 2020
▲ Resolution Adopted by the Remuneration Committee (2020.11.12):
Upon solicitation of comments by the Chairman, no objection was raised and the resolution
was adopted unanimously by the Committee Members present.
▲ Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1 and 2:
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, an interested party relationship exists between any Directors and any
agenda proposals, such Directors shall excuse themselves during discussion of and voting on
those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung Chen,
Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as managerial
officers of Compal, recused themselves from discussion and voting on this proposal. Upon
solicitation of comments by the chairman, no objection was raised and the resolution was
adopted unanimously by the remaining Directors present.
■ Other notes:
1.
If the Board of Directors declines to adopt or modify a recommendation of the remuneration
committee, it should specify the date of the meeting, the session, the nature of motion, the
resolution made by the Board of Directors, and the Company’s response to the remuneration
committee’s opinion (e.g., if the amount of remuneration passed by the Board of Directors
61
exceeds the remuneration committee’s recommended amount, the circumstances and cause for
the difference shall be specified): None.
2.
If resolutions of the remuneration committee are objected to by members or become subject to
a qualified opinion, which has been recorded or declared in writing, then the date of the meeting,
the session, the nature of the motion, all members’ opinions and the response to members’
opinions should be specified: None.
62
Deviation and causes
of deviation from
Corporate Social
Responsibility Best
Practice Principles for
TWSE/TPEX Listed
Companies
No deviations were
found
3.3.5
Corporate Social Responsibility
Assessment criteria
Yes No
Summary description
Actual governance
1. Does the Company conduct
Yes
risk assessment on
environmental, social, and
corporate governance issues
related to the Company's
operation in accordance with
the principle of materiality and
formulate relevant risk
management policies or
strategies?
2. Has the Company set up a full-
Yes
time (or part-time) unit to
promote corporate social
responsibility, which is
authorized by the Board of
Directors to be handled by the
senior management and
reported to the Board of
Directors?
3. Environmental issues.
(1) Has the Company established an
Yes
appropriate environmental
management system according to
its industrial characteristics?
The Company collects and reviews, at least once a year in accordance with CSR materiality, issues
that stakeholders concern about, evaluates risks on material issues and formulates strategies and
goals to respond to the risks as well as completely implements the strategies and goals.
In 2020, the Company collected material issues on economic, environment and social to formulate
strategies and implement management.
The Company has a CSR Committee and a dedicated unit responsible for the prevention of insider
trading. The Committee consists of members of senior management authorized by the Board of
Directors to oversee affairs pertaining to CSR and integrity management. In addition, Compal laso
has a CSR Office with designated personnel to handle the promotion of relevant tasks resolved by
the CSR Committee. For the 2020 Corporate Social responsibility operation and implementation
please refer to page 68~69, the targets and plans of 2021 Corporate Social Responsibility please
refer to page 69~70. The results of implementation are also disclosed in our Annual Report, CSR
Report, and on our corporate website/CSR sustainability website.
No deviations were
found
The Company began its implementation of ISO 14001 Environment Management System in April
1997. Quality and environmental safety policies were created in 2005 to guide the Company’s
efforts on employee workplace safety and corporate responsibilities. Operating procedures and
environmental/safety/health management systems have been established based on government
regulations and international standards such as ISO 45001. The Company adopted proper
communication channels to convey its environmental and safety policies and goals to employees,
suppliers, contractors, surrounding neighbors, and interest groups.
No deviations were
found
63
Assessment criteria
(2) Is the Company committed to
improving the efficiency of
resource utilization and using
recycled materials with a low
impact on the environment?
Yes No
Yes
(3) Does the Company assess the
Yes
risks and opportunities of climate
change for the enterprise now
and in the future and take
measures to deal with climate-
related issues?
Actual governance
Summary description
Throughout the "product life cycle," we consider the environmental impacts of raw material
procurement, manufacturing, transportation and distribution, consumer use and disposal, etc., at
the beginning of product design. In addition to focusing on user needs, functionality and additional
Value, the R&D team is more focused on product development and design from the perspective of
“environmental load minimization” at each stage, covering at least the three core directions of “green
materials," “energy efficiency," and “ease of dis-assembly/recycling."
Improve production line yield and energy efficiency, develop, and use recycled materials stably,
design energy-saving products to reduce energy consumption during reuse, and increase the
recoverable proportion of waste entering the waste phase.
Extreme weather conditions caused by global warming and climate change have caused significant
impact to the world and Taiwan, and pose unprecedented challenges to mankind. Apart from
mitigation, we must also begin adaptation operations since climate change is inevitable. Adaptation
applies not only to individuals, but to corporations as well, for it is important for companies to
minimize business risks caused by extreme weather, which will require extensive and thorough risk
assessments in order to turn risks into opportunities. We attach a climate-related risk and
opportunity identification table, Please see page 71.
Deviation and causes
of deviation from
Corporate Social
Responsibility Best
Practice Principles for
TWSE/TPEX Listed
Companies
No deviations were
found
No deviations were
found
64
Deviation and causes
of deviation from
Corporate Social
Responsibility Best
Practice Principles for
TWSE/TPEX Listed
Companies
No deviations were
Yes No
Yes
Assessment criteria
(4) Does the Company prepare
statistics of greenhouse gas
emissions, water consumption,
and the total weight of waste in
the past two years and formulate
policies for energy conservation
and carbon reduction, greenhouse
gas reduction, water consumption
reduction, or other waste
management?
Actual governance
Summary description
The Company began its greenhouse gas surveys (scopes 1 and 2) and carbon footprint inventory as
early as 2010. Starting from 2014, the Company has conducted greenhouse gas (scopes 3) inventories
on a yearly basis. In 2015, Compal was included in the CDP Climate Disclosure Leadership Index
(“CDLI”) for the first time. The Company has actively participated in the Carbon Disclosure Project
(“CDP”) as a means to improve its response to climate changes. The CDP achieves its purpose by
assessing a company’s carbon emissions, reduction progress, compliance risks and exposure to
physical risks in the hopes of reducing operational risks and costs through autonomous carbon
reduction or even turning risks into opportunities to ensure the Company’s sustainability.
In order to reduce the environmental impact of Compal's operations, we actively promote water
saving and waste reduction in each plant area, and record the water consumption and the total
amount of various types of waste of the latest 2 years attached as follows:
Items
Total greenhouse gas emissions
Total water consumption
Total waste
2019
301,471
2,184,654
11,759
Note: This is an estimation. Please refer to the CSR Reports for the actual figure.
Unit: Tons
2020
234,305 (Note)
2,543,277
8,037.65
4. Social issues
(1) Has the Company formulated
Yes
relevant management policies and
specific management plans in
accordance with relevant laws and
regulations and International
Human Rights Conventions?
The Company places great emphasis on equal opportunities and business ethics. It has policies and
systems in place to ensure compliance with international conventions.
The Company and all its subsidiaries throughout the world have established employment guidelines
according to international human rights conventions and local labor regulations. All employment
terms have been assured to conform with the laws of the local country or region. Out of respect to
labor rights, the Company changes its policies and rules in line with the latest regulations, and
announces them to all its employees. For the purpose of maintaining harmonic employer-employee
relations, a communication platform has been created to enable exchange of opinions and
information between the Company and its employees.
No deviations were
found
65
Yes No
Yes
Assessment criteria
(2) Has the Company established
and implemented reasonable
employee welfare measures
(including compensation, vacation,
and other benefits) and properly
reflected the operating
performance or the results of
employee compensation?
(3) Does the Company provide
Yes
employees with a safe and healthy
work environment? Are
employees trained regularly on
safety and health issues?
Actual governance
Summary description
The Company has work rules in place regading wages, working hours, leave, pension, social insurance
and occupational disaster compensation…etc. and has set up a Committee of Employee Welfare for
benefit planning and execution. Pursuant to the Articles of Association, when the Company makes
profit in a year, no more than 2% of the Company’s pre-tax profit (not including remuneration for
employees and Directors) shall be appropriated to employees. The aforementioned bonus,
adjustment in wages, and employee compensations are reviewed by the Remuneration Committee
and resolved by the Board of Directors. The Company's remuneration policy is based on personal
ability, contribution to the Company, performance, and is considered to be a correlation between
operating performance and the positive correlation.
The Company is well-aware of how significantly “workplace safety and health” affect a company, its
employees, and stakeholders. This was the reason why the Company has enhanced its
environmental, safety, and quality policies and obtained ISO 14001 and ISO 45001 certification, which
requires all departments to implement proper safety and health practices, as well as regular training
on matters such as fire safety equipment, utility plans, waste disposal, emergency response
procedures, etc. The Company organizes health and safety training for employees on a regular basis
as a means to prevent occupational hazards and ensure workplace safety. In 2020, 10,400 employees
had completed their training for a total of 12,633 hours.
Deviation and causes
of deviation from
Corporate Social
Responsibility Best
Practice Principles for
TWSE/TPEX Listed
Companies
No deviations were
found
No deviations were
found
(4) Has the Company established an
effective career development
training program for its
employees?
Yes
Annual training programs are tailored to suit the needs of different employees, based on the
Company’s business strategies, policy guidelines, and career roadmaps. The Company constantly
aims to establish itself as a learning organization and coaching management.
No deviation was
found
(5) Does the Company follow
Yes
relevant laws and regulations and
international standards for
customer health and safety,
customer privacy, marketing and
labeling of products and services
and formulate relevant policies and
grievance procedures to protect
The Company is an OEM/ODM. It manufactures TV sets, notebooks, cell phones and electronics for
the world’s top brands. All products are printed with customers’ trademarks, names, and labeling
that conform with relevant laws and international guidelines. However, the Company does not print
its own logos or names on the products it produces. Until customers have officially launched their
products, employees are not allowed to disclose product appearance, design, specifications, or
technical information in any way. Compal is committed to protecting customers' information in every
step along the way and is operated based on the policy and plans of Compal’s “Information Security
No deviations were
found
66
Actual governance
Yes No
Summary description
Assessment criteria
the rights and interests of
consumers?
(6) Does the Company have a
Yes
supplier management policy that
requires suppliers to follow
relevant specifications and their
implementation in environmental
protection, occupational safety
and health, or labor human rights
issues?
Yes
5. Does the Company prepare the
Corporate Sustainability and
Social Responsibility Report and
other reports that disclose the
Company's non-financial
information in accordance with
the international reporting
standards or guidelines? Is the
aforesaid report confirmed or
guaranteed by a third-party
verification unit?
Committee.”
Compal aims for customers’ health and safety. Maintaining customer health and safety is the most
basic and important issue. All products produced by Compal have passed the IEC 60950-1
certification standard, and have never violated product safety and health regulations and voluntary
regulations and the development of Halogen-free products and construction of a more robust
production capacity are our promise and responsibility.
Compal adopts the policy of signing procurement agreements with every new supplier it engages
with. The purpose of such agreements is to prohibit unfair, unjust or discriminative behaviors in the
procurement process, and to reiterate that: all products supplied to Compal must conform to
international, national, and regional environmental regulations. Suppliers will be held responsible for
any violations against the agreement. Apart from procurement contracts, starting from 2009, all new
suppliers collaborating with Compal have been required to sign a contract of compliance to abide by
RBA’s code of conduct and standards, with contents covering the five major aspects of RBA’s code of
conduct: management of Labor, Health and Safety, Environment and Ethicsalong with an additional
clause on the non-use of conflict minerals. The policy has been effective ever since.
Each year, we select suppliers involved in transactions of substantial amounts with greater
disruption risks as the target of audit. We adopt RBA’s VAP for our audit process. We audited 16
suppliers in China in 2020.
The Company has issuepublished annual CSR reports for its stakeholders on its website since 2010.
The CSR report was first certified by an external institution in 2012. The Company adopted Global
Reporting Initiative’s most updated guidelines (GRI Standards, published in 2016) to prepare its 2019
CSR report. The report was compiled based on issues concerning stakeholders and the Company’s
key objectives. To ensure the credibility of reported contents, the Company commissioned SGS to
provide independent assurance based on the criteria specified in AA 1000 AS and GRI Standards.
After their assurance, the report was certified to meet AA 1000 AS Standard Type 2, mid-level
accountability and GRI Standards application core requirements.
The Company was awarded Silver or Bronze Awards by the Taiwan Institute for Sustainable Energy
for its “Taiwan Corporate Sustainability Report Award” in 2014-2020 and Silver Award for English
Report in 2020.
67
Deviation and causes
of deviation from
Corporate Social
Responsibility Best
Practice Principles for
TWSE/TPEX Listed
Companies
No deviations were
found
No deviations were
found
▓ The implementation results of 2020 Corporate Social Responsibility
Item
Results
1. We were awarded the 6th Corporate Governance Evaluation top 6-20% in Public traded
company group, which was held by Taiwan Stock Exchange (TWSE).
2. We were selected into the FTSE4GOOD Index for five consecutive years and in the FTSE4Good
TIP Taiwan ESG Index for the third consecutive years.
3. We were ranked 44th of Common Wealth Magazine’s CSR Top 50, 396th of Fortune Top 500,
1558th of Forbes Top 2000, 64th of Common Wealth Magazine’s Top1000 in China, Taiwan and
Hong Kong, and Common Wealth magazine’s Taiwan Top 50 Group #4.
4. The Compal CSR report in 2020 was certified by SGS Taiwan Ltd., by using the assurance
standards of the AA1000 and GRI Standards Core Options. Meanwhile, the report won the
Platinum Medal of 2020 Taiwan Corporate Sustainability Report Award and the Silver Medal
of 2020 English Report Award of TCSA.
5. We were ranked 11th of Germany iF Worldwide Design Awards in 2020.
1. We implement the training and promotion of Corporate Social Responsibility (CSR) and the
code of conduct of Responsible Business Alliance (RBA) for employees and suppliers. In 2020,
we implemented the non-use of conflict minerals policy and completed a Survey (CMRT) of
864 suppliers' conflict minerals with a completion rate of 100%.
2. To reinforce CSR audit and management on Tier 1 suppliers, we have audited 16 suppliers and
tracked the finding correcting plans in 2020.
3. We launched the project of building a supply chain management on-line platform in 2019 and
80% completed by the end of 2019. Complete CSR on-line platform of supply chain
management and Digitalization of supply chain management on May, 2020.
1. We participated in the CDP climate change and water safety questionnaire. Climate change
questionnaire named at management tier in 2020.
2. We promoted waste reduction and recycling. The NJC and KS1, KS3 conduct waste
management in accordance with UL2799 waste zero landfill management system. All of them
meet the platinum level and are certified by The NJC and KS1.
3. Reduce greenhouse gas emissions, continue to implement energy management systems and
strengthen the procurement of renewable energy. The percentage of renewable energy used
in the plant area has increased from 3.22% to 33.26%.
4. We participated in the "Waste 3C Recycling Activities" of customers. 213 Compal employees
joined the event.
5. Responding to the sustainable development goal of the United Nations "SDGs 14 Life below
Water ", we organized a “Beach cleaning activity at Liukuaicuo”, a beach cleaning activity with
85 college students volunteers and Dayuan, Guanyin class assistant students together at
Linkou Zhuwai Beach. We participated in the initiative activity, “Do one thing for Tamsui River
“held by CommonWealth Magazine and participated in the Linkou Jiabao Beach Enterprise
Joint Beach Cleanup.
1. Compal adheres to the goal of reducing environmental load and reducing human hazards, and
builds the production and manufacturing capabilities of halogen-free products. Halogen-free
products in 2020 include: NB 76 model, Smartphone 33 model, and tablet 2 models.
2. We use ENERGY STAR as the standard to check the energy-saving status of products. In 2020,
110 models will be mass-produced, 95 of which have passed the ENERGY STAR standard. In
addition, 5 models of LCD monitors have passed the ENERGY STAR standard.
1. We continue participating in charities with the HCI foundation. In 2020, 1,403 employees
donated more than TWD 4 million.
Corporate
Governance
Supply Chain
Management
Green
Environment
Green
Product
Social
Welfare
68
Item
Results
2. We sponsored the "Kangaroo Project" from the Rural Education Center of Fu Jen University,
and 28 volunteers from Compal Enterprise participated in the after-school tutoring center at
the Dayuan Guanyin and Yuli Bookstore for the community service work.
3. We continued to participate in various activities to promote Children’s high-quality education,
promote digital education in rural areas, donate NB, AIO, tablets, participate in Taoyuan’s
"Education-industry Collaboration Program” to assist schools in the promotion of information
education to achieve SDGs4 Quality Education of UN.
4. We regularly hold volunteer service activities. In 2020, we had 4 volunteer service activities
with 165 participants. We also held blood donation activities. (146 employees donated 224
units of blood)
5. Compal held the first “Healthy charity- Walk for health and love” activity, having a total of 167
colleagues participated and donated 180 tablets, continue committing to “Action Digital
Learning Program” to enhance the quality of popular science education for school kids in rural
areas. A total of 422 digital mobile learning devices be donated in 2020.
1. We offer employees with diverse care. We arrange health counseling service for employees
every week. 478 employees used the service in 2020. We manage health promotion for
employees who are in the moderate and high-risk group of cardiovascular diseases based on
health examination result, and achievement rate is above 80%.
(1)The achievement rate of people with medium and high cardiovascular risk: 92.5%.
(2)The third level's achievement rate is three high (hypertension, hyperlipidemia and
hyperglycemia) group: 80.6%.
(3)The achievement rate of the second-level and second-high (hypertension, hyperglycemia)
group: 82.4%.
2. We organize various employee health promotion activities, including health walking projects
with charity, health lectures, and various club activities to take care of employees' physical
and mental health. The instructions are as follows:
(1)Walking charity activities: A total of 167 people participated, and the average number of
steps for the whole group was more than 7000 steps per day. A total of 180 computers
were donated to complete the goal.
(2)Blood donation activity: 146 people participated and donated 224 bags of blood, totaling
56,000 cc.
(3)Health seminar: 46 people participated, and the satisfaction reached 100%.
3. We continued the Employee Assistance Program (EAP) in 2020. EAP counseled 72 cases about
family issue, parenting issue, law issue and Interpersonal relationship issue. Meanwhile, we
held 3 health lectures about emotion care.
4. To improve fertility rates, we provide a TWD 66,000 maternity subsidy to employees for each
newborn baby. 222 Compal babies were born in 2020.
Employee
Care
The
programs of
personnel
training
We organize a GOLF academic alliance with AUO and Wistron. In 2020, we successfully
admitted 98 students to participate in a one-year internship. Also, we had 157 students to
register online courses and host 11 on-campus business internship sessions with a total of more
than 1,000 students participating.
▓ The targets and plans of 2021 Corporate Social Responsibility
NO.
1
Targets
Plans
Cooperate with the
global epidemic
prevention
(1)Collect the impact of COVID-19 on business operations and energy
resources, and use SBT to calculate short-, medium-, and long-term
carbon reduction targets, and review Compal’s carbon reduction path and
69
NO.
Targets
Plans
requirements and
policies for major
diseases, constantly
review sustainable
actions, and
strengthen the
identification and
management of risks
related to climate
change.
Promote the digitalization
of CSR management.
Consistently Implement
Continue to promote
employee health care and
assistance and combine
public welfare
participation to create a
friendly workplace
environment.
Continue to Flip
education, respond to the
United Nations
Sustainable Development
Goals ("SDGs"), and focus
on SDGs 3 health and
well-being and SDGs 4
quality education as the
main axis.
Respond to the United
Nations 30 (ocean) x 30
(land) plan: protect at
least 30% of the ocean
and land by 2030, and
reduce climate change.
2
3
4
5
impact on the 2℃ scenario analysis results. Financial impact, strengthen
environmental protection research and development capabilities, and
grasp green business opportunities.
(2)Identify the risks of climate change, reduce the impact of disasters, and
improve corporate resilience.
(3)From the perspective of river basin water resources, promote the balance
of health, epidemic prevention and water resources protection, and
promote the concept of sanitation and water conservation.
in
(4)Promote waste
reduction
from
the
communication with suppliers on packaging materials, using reusable and
recyclable packaging materials to reduce waste, introducing renewable
materials and recyclable and easy-to-dismantle designs into products,
becoming part of the circular economy.
factory area, starting
(1)Optimize CSR on-line platform of supplier chain management platform
functions.
(2)Organize suppliers education and training to improve user efficiency.
(3)CSR report management system evaluation plan.
(1)We actively manage health promotion for employees who are in the
moderate and high-risk group of cardiovascular diseases based on health
examination result, and achievement rate is 80%.
(2)Strengthen the professional training of first-line supervisors and HR staff
to provide a friendly work environment for employees.
(3)Integrate and promote the Second year health projects with charity to
achieve a win-win situation for employee health and public welfare
participation.
(1) Support the HCI Foundation's various physical and mental education and
health care activities for disadvantaged school children in rural areas.
(2) In the third year, cooperated with the Rural Education Center of Fu Jen
Catholic University on the "Kangaroo Project" to enhance the quality of
teaching and learning afterschool in rural areas.
(3) Continue implementing the "Compal Reading Volunteer Program" to
promote reading education in rural areas.
(4) Pay attention to the education and medical care of the silver-haired
people in rural Communities.
(5) Improve students' ability to judge and think about the truth and
participate in teaching plans for identifying fake news.
(1)Attach importance to biodiversity, protect plants in the blue carbon
ecosystem, and sponsor mangrove wetland conservation plans.
(2)Organize beach clean-up activities, continuously carry out environmental
education and promotion, and jointly advocate for ocean protection.
70
■ Climate-related risk and opportunity identification table
Type
Risk and Influence
Adaption and Opportunity
Strategy and Law
‧
International trends and the environmental regulations in China have become
stricter. Therefore, we are faced with fines or risks of plants closing down
resulting from more environmental requests. There are also possibilities that
suppliers close down their plants or reduce the production due to environmental
problems, which will lead to unstable supply and indirectly influence the
efficiency of our assembly line.
The amendment draft of the “Renewable Energy Development Act” of Taiwan
adds an article that electricity consumers who have the capacity contract higher
than 800 kW must set up a renewable energy generation device or replace it
with energy storage, purchase of renewable energy certificates, and payment of
subsidies, which might lead to the increase of operation costs in the short term.
‧
Products are faced with stricter instructions, regulations, and standards. New
materials might influence reliability.
Technology
Market
‧
Customers have gradually put emphasis on and chosen low-carbon and eco-
friendly products.
‧
Reputation
If we do not coordinate with the environmental standards and regulations in
advance, the client might transfer the order.
Acute
‧
Climate change might lead to rainfall type change and the increase of frequency
in rainstorms, droughts, and typhoons. These will bring about the block of road
transportation, the increase of burden on AC devices, health problems and poor
attendance of employees, and damage to plants and machines due to floods.
‧
Climate transformation is likely to worsen the air, cause drought, increase the
frequency of heatwaves, change water quality, and affect employees’ health.
Chronic
Transfer
of Risk
Concrete
Risks
1. Areas with stricter laws and regulations help us distinguish fine green suppliers and enable
us to construct a complete green supply chain.
2. We voluntarily review our internal environmental disadvantages, undergoing improvement
of personnel behavior and device updates to boost our green production competitiveness.
1. Accelerating the development of green electricity and improving the energy management.
Escalating energy productivity and saving energy expenses to cut down costs.
2. The price fluctuations of the oil and electricity will influence the operation costs directly.
Therefore, we effectively control the operation costs through the erection of renewable
energy devices and the boost of energy management ability.
We have to handle regulations and standards from the globe and the market firmly to coordinate,
research, develop, and trial run in advance. We also have to construct the development and the
production capacity of green products to boost our competitiveness.
We are equipped with the ability to mass produce low-carbon products, and we continue to
develop new products to complete the ability of creating a green product market.
We actively engage in external advocacy to learn the international trends and bring in external
guidance and the audit system, constructing complete risk assessment of climate change and the
coordination strategy.
1. We monitor the rainstorm alarm system and implement an alert plan to elevate the plants
located on lower land, reducing the risk of floods.
2. We established a healthcare department designated to provide fine healthcare counseling
for the employees.
3. We have a plan for water use and a drought operating team to effectively monitor and use
water resources, reduce the risk of water use, and cut down the expense on water.
4. We promote knowledge on climate change and rescue exercises and enforce the medical
resources preparation and epidemic prevention exercises to improve the health and safety
awareness of employees.
71
6.
If the Company has established the corporate social responsibility principles based on “Corporate Social
Responsibility Best Practice Principles for TWSE/TPEX Listed Companies," please describe any
discrepancy between the Principles and their implementation:
■ The Company has adopted the “Compal Corporate Social Responsibility Best Practices” based on
“Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies." A “CSR Office”
has also been introduced specifically for the purpose of promoting social responsibilities, environmental
sustainability, public welfare, and information disclosure. The Company has adopted the principles of RBA
by including corporate social responsibilities as part of its overall business plan, thereby making sure that
everything it does confirms with RBA. The CSR Office reports its progress regularly to the Board of Directors,
and publishes annual CSR reports to ensure proper disclosure of CSR information.
■
In order to implement the development of a sustainable environment, maintain an environmental
management system, the Company regularly organizes environmental education courses for management
and employees. Green management has been introduced from the product design stage and the supply
chain. We reduce the energy consumption of products and services, effectively manage harmful substances,
reduce the generation of waste water and waste, and properly handle and adopt the best feasible pollution
prevention and control technology measures.
■ We improve product life and reliability, and maximize the sustainable use of renewable resources with
the concept of easy disassembly and recycling. The Company sets energy conservation and carbon
reduction targets, carries out greenhouse gas reduction operations, and does its utmost to reduce the
adverse impact of the Company's operations on human health and the natural environment.
7. Other important information to facilitate better understanding of the Company’s corporate social
responsibility practices:
■ External initiatives and participation
As a significant member of the Earth, the Company actively participates in global and local environmental
initiatives and actions. Since 2009, Compal has been participating in CDP's questionnaires on climate
change, water, and supply chain carbon management. In addition, the Company takes part in the
Greenhouse Gases (GHG) Protocol developed by the World Business Council for Sustainable Development
(“WBCSD”) and World Resources Institute (“WRI”), and the “Business Transformation Carbon Footprint
Program” introduced by the Industrial Technology Research Institute (“ITRI”) and the Taiwan Electrical and
Electronic Manufacturers' Association (“TEEMA”). The Company has been named a “low-carbon pioneer,"
and is a current participant of DSJI and the Supply Chain GHG Task Force under the International
Sustainability Index Promotion Alliance for Taiwanese Businesses, and took part in the Taipei Earth Day
Corporate Environment Education Commitment campaign. In 2014, Compal was invited to the annual
meeting of Taiwan's “Cradle to Cradle” platform. In 2015, Compal was selected as part of CDP's Climate
Disclosure Leadership Index (“CDLI”) for the first time. In 2020, Compal received an overall CDP
Management score of B-.
■ Energy management system
Increasing productivity per unit of energy is the most fundamental solution to reducing energy
72
consumption and greenhouse gas emission, the Company has detailed planning and implementation since
2017. The Company has completed the certification of the energy management system of PCP, KS3 and CD
Plants in 2019, and has extended relevant experience to other plants.
■ Supply chain carbon management
As one of the world’s key IT producers, Compal uses “information platforms” and “workshops” to keep
suppliers informed of the latest energy/carbon reduction technologies and green living, and inspires them
to commit to active care for the local environment.
The Company requires all its suppliers to be certified for ISO 9001 (quality management system) and ISO
14001 (environmental management system), and follow EICC guidelines by signing a Letter of Commitment
to the behavioral standards of the RBA Code of Conduct. Under this commitment, upstream suppliers are
bound to comply with international, national, and local regulations with respect to all activities.
Due to the COVID-19, there was no planned physical supplier conference in 2020, relevant laws and
regulations were announced in the COMPAL Supplier Design Collaboration Partal System as a means to
communicate with suppliers on how they are expected to contribute and assist in Compal's global
environmental protection and quality management initiatives. Compal also took the opportunity to
exchange and share experiences on CSR issues with suppliers.
■ Corporate environmental education
The Company continued to incorporate environmental education and green experience into employees'
training throughout 2020. In response to the Marine Debris Action Plan, starting from the source reduction,
we did not provide disposable tableware in the Company’s staff restaurant, and held a zero-waste
symposium. From caring for rivers, signing the "Tamsui River Convention", organizing Tamsui River
ecological tour, inviting company employees, supply chain partners and collaborative social welfare groups
to participate in environmental education and beach cleaning activities, a total of three sessions. The
Company provided full top-down support, while employees and their family members enthusiastically
participated in a series of “experiential” environmental education. We rallied our employees to exercise
our influence as consumers to select safe foods and sponsor quality rice fields and tea farms. The crops are
later presented to clients as Chinese New Year gifts. By modifying demand, we hope to change supply and
promote more sustainable agriculture, forestry, animal husbandry, and fishery.
All new recruits are required to undergo 0.5 hours of online environmental training in their initial year. The
course covers a variety of topics from green living, preservation of ecosystems, climate change, to green
design. In the future, the Company will also make “green products” a mandatory course and introduce
more advanced courses on green design issues. A core team will be assembled specifically for the purpose
of improving green energy efficiency, and building up Compal's distinguished values in the Information and
Communication Technologies (ICT) industry.
■ Supporting social enterprises
In recent years, many social enterprises have emerged with goals to protect the environment and improve
public interest. In support of their efforts, the Company encourages employees to purchase products and
services offered by social enterprises, in hopes that by redirecting purchasing power, we may be able to
73
muster positive energy to solve society's problems. In 2020, Compal collaborated with Mennonite Hualien
County Sheltered Workshop, I Can Sheltered Workshop, Hanner Family, Taiwan Mountain and Maritime
Protection Society, and managed to raise several hundred,000 New Taiwan Dollars of donations from
employees.
■ Community engagement
‧
The Company has long been sponsoring the maintenance and management of Zhouzi Park No. 2 in
Neihu in order to provide community residents and industrial park workers a nice place for leisure and
recreation activities.
‧
‧
Compal Neihu employees supports the “2020 Blood donation activity”: 146 people participated and
donated 224 bags of blood, totaling 56,000cc.
Compal has teamed up with the "Kangaroo Project" from the Center of Care Services for Rural Area
Education of Fu Jen Catholic University, and ran after-school tutoring centers at three communities
namely as Dayuan, Guanyin, and Yuli Bookstore. 2020 “beach-cleaning activity” with 85 college
students’ volunteers and Dayuan, Guanyin class assistant students together at Linkou Bamboo Wai
Beach. Participated in the initiative activity.
■ Social services
‧
Compal's employees have run the “Compal Volunteer Club” since 2004. Members of this club visit
disadvantaged children during weekends and guide them to read good books. The goal of this program
is to help them develop the habit of reading and the ability to think independently, and hence prepare
them for the future. The volunteers have also been working with Hsu Chauing Social Welfare and
Charity Foundation to provide extracurricularm education for immigrant children. Since 2009, they
have been visiting Jong Jen Elementary School, Wuhan Elementary School, Nan-Shi Primary School,
Chung Ping Elementary School, Shuang Long Elementary School, Neihai Elementary School, Nan Sing
Elementary School, Hsiang An Elementary School, Tien Hsin Elementary School, Hua Hsun Elementary
School, Wu Cyuan Elementary School, San He Elementary School, Chung-Shing Elementary School,
Sin-Jie Elementary School, Xin Lu Elementary School, Fu An Elementary School, Dacheng Elementary
School, Long-Sing Primary School, San Keng Primary School, Shanghu Primary School, Yisheng
Elementary School, Shi-Hai Primary School, Te-Long Elementary School, Sha Keng Elementary School,
Da Po Elementary School and Haibin Elementary School in Taoyuan during public holidays to
accompany children in their reading activities. As of the end of 2020, the volunteers had assisted 3,908
immigrant children and children from disadvantaged families.
‧
‧
Compal has been encouraging college volunteer clubs to join the Company's “reading volunteers”
initiative and provide study aids to children from low-income families in the neighborhood. By
sharing good reading materials and environmental awareness, the Company hopes to contribute to
the learning progress of disadvantaged children.
45 colleagues participated in the activity of Hsu Chao-Ying Foundation called “New Pen Pal
relationship- Hand in hand move forward together.” Through exchanging letters once a month, the
participants of our company and the children from high-risk families in Taichung share what they see
and hear in life and cheer for each other. We believe that only the cares from hearts can encourage
74
people move forward and carry out the goal and plan written in the letter together.
■ Social welfare
(1) Budget sponsorship
‧
Sponsoring of budgets for college volunteer clubs
In an attempt to encourage college students to participate in volunteer service, the Company has been
contributing TWD 600,000 every year since 2004 to sponsor college clubs in reading promotion directed at
children, after-school classes, and environmental education in locations that lack resources and for low-income
households. Thirteen college clubs applied for sponsorship and 491 volunteers participated in sponsored
volunteer activities in 2021, for which the Company contributed a sum of TWD 584,000 that benefited 2,267
students.
Sponsoring of budgets for Compal Sunshine Scholarship
"Compal x Sunshine Scholarship" has been in existence for 21 years, which has specially designed to provide
"Outstanding Computer Talent Scholarship" and "Computer Excellence Scholarship" for students with burns
and facial impairments yet with excellent computer skills.
In addition to charity involvement, the Company also provides strong support to academic and industrial
organizations including: Taipei City Friends of the Police Association Neihu Office, Taoyuan Enterprise Chamber,
Taiwan District of Kiwanis International, Taiwan Institute for Sustainable Energy, Kaohsiung Medical University
Donation Fund National Taipei University, Kaohsiung Public Library, Spinal Cord Injury Foundation, National
Policy Research Foundation, General Assembly of the Association of Retired Police Officers of the Republic of
China, A sum of TWD 4,990,000 was donated to the above mentioned entities in 2020.
‧
‧
(2) Donation of supplies
‧
Compal has the“ Education-industry Collaboration Program Playing Plan” with the Hsu Chao-Ying Foundation
In 2020, Department of Education, Taoyuan, Hsu Chao-Ying Foundation and the Compal Electronics had a press
conference for the“Education-industry Collaboration Program Playing Plan”in Wen Huah Elementary School,
Taoyuan. The Compal donates 180 tablets to the following 9 elementary schools: Taipei Xi nmin Private
Elementary School, Wen-huah Elementary School, Da’an Elementary School, Pushin Elementary School,
Zhentou Elementary School, Jung-Pu Elementary School, Xihai Elementary School, Wu-hanElementary School
and Ximen Elementary School to help the Xu Chao-Ying Foundation promote the plan called“Professional
learning community with the maker teacher and Student maker club.”
In order to assist and enhance the function of digital mobile learning program of schools and communities in
remote areas, Compal donated 132 sets of AIO, 20 sets of Tablet and 90 sets of NB PCs, respectively.
‧
(3) 2020 Compal Charity Bazaar
Both chairman Hsu Sheng-xiong of Compal Electronics and chairman Tsai Li-chu of Hsu Chauing Social Welfare
and Charity Foundation attended the event together. At the event, the object of fund-raising for Hsu Chauing
Social Welfare and Charity Foundation is to raise money for grandma Jiang so that she can purchase a two-
person electric scooter. During the charity sale, there are red envelopes made after Xin Chou Year with the
donated painting copyright from our colleague, Chen Jia-ying and tea gift boxes donated by Chairman Tsai.
Besides, the booths participated in this charity fair include: Yu-Cheng Social Welfare Foundation, Kanner Village,
Happy Mount Colony, DoDo hand-made master Chen Sin-yao and Good Days. With joint support from 81
colleagues, we worked together to fulfill Grandma's wish as she is now living at the mountains of Pingtung, and
75
raised a new two-person electric scooter for her.
■ Human rights
The Company respects the human rights of all employees. In addition to prohibiting the use of child labor
and overtime working, the Company treats all employees of different ethnicities, religious beliefs, skin
color, gender, nationality, age and physical features with equal respect and fairness. The Human Resource
Management Policy explicitly states that “the Company shall recruit employees based on knowledge,
morality, skills, experience and suitability for the position/job in question. Under no circumstances may the
Company reject recruitment for reasons such as gender, ethnicity, religion, political association, nationality,
sexual preference, or age." The Company also refrains from using involuntary workers and child labor.
■ Safety and health
At a time when financial performance is as important as environmental protection, the Company considers
“occupational safety and health” to be an important issue that no business shall neglect. Only by creating
a safe work environment are employees able to unleash their full potential, which is a driving force behind
the Company's progress. For this reason, the Company not only ensures that every operation is compliant
with environmental, safety, and health rules, but also commits to eliminate or reduce safety and health
risks to employees, suppliers, contractors and stakeholders that are caused by production procedures,
facilities, and activities. At Compal, we see financial performance, environmental protection, and
occupational safety and health as three co-existing and complementing factors of business administration.
The Company created its official environmental safety and quality policies to guide employees toward
protection in the workplace and social responsibilities. Furthermore, these policies also provide employees
and external stakeholders (such as suppliers, contractors, customers, environmental organizations,
government agencies and community residents) with a better understanding of the Company's
environmental safety efforts and its resolve to protect and minimize risks to the environment. Ultimately,
we hope to direct the attention of our partnered vendors to environmental protection, safety and health,
and work together towards accomplishing our goals.
(1) Environment safety and health policy:
‧
‧
Comply with environmental, safety and health laws, and related requirements.
Conduct environment safety and health training to raise employees' awareness towards individual
responsibilities as well as safety and health concerns of the surrounding environment, while at the
same time encouraging their participation in relevant issues.
‧
‧
‧
Continually improve environmental, safety and health performance through programs such as
pollution prevention, accident prevention, energy/resource conservation, waste reduction, and
responsible care.
Pay attention to the control of pollution sources and reducing waste from production. Enhance safety
and health facilities to prevent pollution and minimize risks.
Establish proper communication channels to convey the Company's environmental safety policy,
requirements, and goals to employees, suppliers, contractors, nearby residents and concerned
organizations.
76
(2) Environmental safety and health systems/measures:
In an attempt to minimize losses on occupational hazards and rectify hidden dangers and recurring safety
incidents for more harmonic labor-management relations, the Company subsequently assembled an
Environment Safety Promotion Committee that specializes in the development of environment safety
plans. Any environment safety-related policies and goals proposed are subject to review during the
Environmental Safety Management Review Meeting. Once reviewed, the Committee becomes
responsible for supervising work safety units in the implementation of safety and health-related
measures, auto inspections, maintenance, and training to eliminate hazardous factors in the
environment. In addition, the Committee also supervises relevant departments in completing hazard
prevention and loss control systems.
(3) Execution
‧
Fire safety equipment/facilities plans and execution: Appropriateness and adequacy of fire safety
equipment/facilities are reviewed whenever there is a change to the layout of the business premises.
Locations of fire safety equipment/facilities and evacuation routes are clearly labeled on each floor.
The Company also engages professional and qualified fire safety inspectors to conduct annual fire
safety inspections and reports according to law.
‧
‧
Water/power plans and execution: The Company promotes proper awareness and implements
appropriate control on all uses of water and power equipment for more effective conservation of
energy and resources. The administrative department is responsible for the day-to-day inspection of
power usage, power systems, and water equipment. All inspection findings are detailed in the “Safety
and Health Equipment Inspection Log” and any issues discovered are rectified immediately.
Cleaning, monitoring, and control of industrial waste: Handled by the Factory Affairs Division of various
factories and General Affairs Department of the headquarters. Waste generated from factories can be
classified into the following categories:
a. Hazardous waste: Sorted according to “Standards for Defining Hazardous Industrial Waste”
stipulated by the Environmental Protection Administration (EPA), Executive Yuan, and collected
by certified contractors for subsequent treatment.
b. Industrial waste: Industrial waste other than hazardous industrial waste is collected and treated by certified
contractors.
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‧Emergency response procedures: These procedures have been established to guide the Company through
disruption of production, information, and raw material supply in the occurrence of natural or man-made
disasters. Incident resolution procedures:
Hazard alert occurs
Incident reporting
Confirmation of
Hazard
YES
Activate emergency
response
NO
Update
records
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Confirmation of
damage control
NO
Request external
support
YES
Level 1 hazard:
Post-disaster recovery
Any death or 3 major injuries or
Incident investigation and proposal
of preventive measures
higher
Loss of work hour exceeding 1
day
Loss of property above USD
USD 1 million
SP: Occurrence of Level 1
hazard must be escalated to
the Senior Risk Management
Committee
(4) Quality Policy (pursuing continuous improvement to meet customer needs): We commit to
. Implement customer-oriented performance management.
. Create competitive advantages in products and services.
78
3.3.6
Ethical Corporate Management
Yes No
Yes
Assessment criteria
I.
Establishment of integrity
policies and solutions
1. Does the Company have an
ethical corporate
management policy
approved by the Board of
Directors and clearly state
the ethical corporate
management policy and
practice in the internal
regulations and external
documents, as well as the
commitment of the Board
of Directors and senior
management to actively
implement the corporate
management policy?
Actual governance
Summary description
The Company has established the “Ethical Corporate Management Best Practice Principles” and
“Procedures for Ethical Management and Guidelines for Conduct” and, in addition, clearly outlined
the procedures for ethical management and guidelines to conduct in its HR policies, social
responsibility policies, the integrity principles and code of conduct for Directors, supervisors,
managers, and the general code of conduct. The Company’s “Board of Directors Meeting Guidelines”
contain a conflicting interest clause that requires Directors to disassociate from all discussion and
voting on any agenda that poses a conflict of interest between the Company and themselves or the
entities they represent.
The Board of Directors approved the policies that were based on integrity accordingly in 2019 as well.
The Board of Directors and the management had issued "The statement of compliance with the
Ethical Corporate Management Best Principles," committed themselves to business integrity.
Deviation and causes
of deviation from
Integrity Best Practice
Principles for
TWSE/TPEX Listed
Companies
No deviations were
found
2. Has the Company
Yes
established an evaluation
mechanism for the risk of
unethical behavior,
regularly analyzed and
evaluated the business
activities with high
unethical behavior risk
within the business scope
and formulated a plan to
When the Company internal audit prepared the next year audit plan, unethical behavior was included
in the scope of risk assessment. The relevant audits are performed accordingly, and the “Procedures
for Ethical Management and Guidelines for Conduct” was adopted to govern the of follows items:
‧ Prohibition against offering and accepting of improper benefits
‧ Prohibition against lobbying
‧ Prohibition against illegal political donations
‧ Prohibition against improper donations or sponsorships
‧ Prohibition against inappropriate gifts, treatments and illegitimate benefits
‧ Prohibition against unfair competition
‧ Prohibition against leakage of commercial secrets and infringement of intellectual property rights
No deviations were
found
79
Actual governance
Yes No
Summary description
‧ Prohibition against insider trading and rules of confidentiality
Furthermore, the “Information Security Policy” has introduced measures to prevent violation of
commercial secrets.
Deviation and causes
of deviation from
Integrity Best Practice
Principles for
TWSE/TPEX Listed
Companies
Assessment criteria
prevent unethical behavior
accordingly which at least
covers the preventive
measures for the behaviors
in paragraph 2, Article 7 of
the “Ethical Corporate
Management Best Practice
Principles for TWSE/GTSM
Listed Companies”?
Yes
3. Does the Company stipulate
the operating procedures,
behavior guidelines, and
disciplinary and grievance
systems in its unethical
behavior prevention plan
and implement them and
regularly review and revise
the plan?
II.
1.
Yes
Integrity actions
Does the Company
evaluate the integrity of all
counterparties it has
business relationships
with? Are there any
integrity clauses in the
agreements it signs with
business partners?
The Company has established the “Ethical Corporate Management Best Practice Principles” and
“Procedures for Ethical Management and Guidelines for Conduct” (hereinafter, “Procedures and
Behaviors”) as an incentive to insiders and outsiders to report unethical or unseemly conduct. Any
insider who makes a false report or a malicious accusation shall be subject to disciplinary action
and be removed from office if the circumstance has substance.
This Company has appointed a contact person, and has established a hotline and mailbox that can be
used either through the Intranet of the Company website or the official Company website. Any person
involved in unethical conduct will be referred to an authorized department and processed according
to the “Procedures for Ethical Management and Guidelines for Conduct."
The Company carries out regular reviews and revises for relevant measures every year. Also, we
arrange related training on Ethical Corporate Management and announce the request to follow Ethical
Corporate Management Best Practice Principles.
No deviations were
found
The Company requires all suppliers to sign the Letter of Undertaking for Compliance with the
Responsible Business Alliance (“RBA”) Code of Conduct by Vendors, which binds them to local
regulations on workers, environment, safety, health, management, and moral conduct, and prevents
them against corruption and unethical behaviors.
No deviations were
found
80
Deviation and causes
of deviation from
Integrity Best Practice
Principles for
TWSE/TPEX Listed
Companies
No deviations were
found
Yes No
Yes
Assessment criteria
2.
Has the Company set up a
dedicated unit under the
Board of Directors to
promote ethical corporate
management and regularly
(at least once a year)
report to the Board of
Directors its ethical
corporate management
policy and plan to prevent
unethical behavior as well
as its supervision of the
implementation?
Actual governance
Summary description
The Company has appointed its human resources, administrative management and legal affairs offices
as the competent units in charge of the Company’s ethical matters. These units jointly set the
guidelines and policies, which are monitored by the auditors and reports to the Board of Directors on
a yearly basis. To prevent potential conflicts of interest, the Company has established the “Ethical
Corporate Management Best Practice Principles” and “Procedures for Ethical Management and
Guidelines for Conduct." In addition, the Company has also designed relevant course for its online e-
Learning, including legal affairs related training on information security, personal information
protection act, relevant company policies and employees’ code of conduct so as to familiarize all
employees with the aforementioned guidelines and thereby facilitate the promotion of honest
management.
Status of Operation and Implementation in 2020:
The Company requires suppliers to follow the RBA code of conduct, and sign the RBA Code of
Conduct commitment or complete the RBA Code of Conduct questionnaire. Among 1,245 suppliers
with transaction records, 1,116 have signed the RBA Code of Conduct commitment or completed
the RBA Code of Conduct questionnaire, making for a signing rate of 89.64%. In addition, 17,493
employees completed 16,335 hours of integrity management related training, including:
Courses
New Employee Orientation
On-job Training for New Employee
Management of the prevention of insider trading
CSR Training
The Precautions of Intellectual Property Rights and Software Installation
New Employee Orientation (PCP)
Information Security Management System
Hours
2,995
7,428
5
3,649
872
1,146
240
Attendances
1,198
1,645
9
6,884
6,708
191
858
3.
Does the Company have
any policy that prevents
conflict of interest, and
channels that facilitate the
Yes
The Company has established the “Ethical Corporate Management Best Practice Principles” and
“Procedures for Ethical Management and Guidelines for Conduct” (hereinafter, “Procedures and
Behaviors”). A Company Director, officer or other stakeholder attending, or present at a board
meeting, or a juristic representative whose presence infers a likelihood that company interests might
No deviations were
found
81
Actual governance
Yes No
Summary description
Deviation and causes
of deviation from
Integrity Best Practice
Principles for
TWSE/TPEX Listed
Companies
Assessment criteria
report of conflicting
interests?
be prejudiced may not participate in a discussion or vote on that proposal, shall recuse themselves
from discussion and voting, and may not exercise voting rights as a proxy on behalf of another
Director. The Directors shall exercise discipline among themselves, and may not support each other
in any inappropriate manner. If, in the course of conducting company business, an employee of this
Company discovers that a potential conflict of interest exists involving themselves or the juristic
person that they represent, or that they or their spouse, parents, children, or a person with whom
they have a relationship of interest is likely to obtain improper benefit, the matter shall be reported
to their immediate supervisor and the responsible unit, and the supervisor shall provide the employee
with the proper instructions.
No employee of this Company may use company resources for commercial activities other than those
of this Company, nor may his or her job performance be affected by involvement in commercial
activities other than those of this Company.
The Company’s HR policy and employee code of conduct have introduced rules to identify, supervise,
and manage conflicts of interest for business activities that are more highly prone to dishonest
behaviors. There are channels in place for Directors, supervisors, managers, stakeholders, and board
meeting participants to state their conflicting interests with the Company.
To prevent leakage of material nonpublic information, the Company has established “CO10 Insider
Trading Prevention Management” as part of its internal control and demanded strict compliance from
Directors, supervisors, managers, employees, and any party that gains knowledge to the Company’s
material non-public information whether because of their identity, job responsibility, or controlling
relationships.
The Company has set “Ethical Corporate Management Best Practice Principles” and focuses on
creating an effective accounting system and internal control system to avoid high-risk or unethical
business activities and the use of external or secret accounts. Self-evaluation is done on a regular
basis to make sure the design and execution of the system is effective.
Since 2019, when the Company internal audit prepared the next year audit plan, unethical behavior
was included in the scope of risk assessment, and relevant audits are performed accordingly.
82
No deviations were
found
4.
Yes
Has the Company
established an effective
accounting system and
internal control system for
the implementation of
ethical corporate
management and has the
internal audit unit,
according to the
assessment results of the
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation from
Integrity Best Practice
Principles for
TWSE/TPEX Listed
Companies
risk of unethical behavior,
drawn up relevant audit
plans to check the status of
unethical behavior
prevention accordingly, or
entrusted an independent
auditor to carry out the
audit?
Does the Company
organize internal or
external training on a
regular basis to maintain
business integrity?
Implementation of
whistleblowing system
Does the Company provide
incentives and means for
employees to report
malpractice? Does the
Company assign dedicated
personnel to investigate
the reported malpractice?
Yes
Yes
5.
III.
1.
2. Has the Company
Yes
established the standard
operating procedures for
the investigation of
accused matters, follow-up
measures after
investigation, and the
relevant confidentiality
mechanism?
The Company organizes training courses
in accordance with “Regulations Governing the
Establishment of Internal Control Systems by Public Companies” and the board-approved “Insider
Trading Prevention Principles." Insider training prevention courses are organized for vice president-
grade employees and above, while general employees take training on ethical behaviors on a yearly
basis.
No deviations were
found
The Company has mailboxes in place to receive malpractice reports from within or outside the
Company. Once a report has been sent to the mailbox, it will be referred to the appropriate
department and personnel depending on the nature of the underlying issue to handle or conduct
related checks.
No deviations were
found
The Company has established procedures to report matters for filing, assigning, verifying, etc., and
requires the responsible person to take relevant actions depending on the results of the
investigation. The case content and whistleblower information shall be processed in confidential.
No deviations were
found
83
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation from
Integrity Best Practice
Principles for
TWSE/TPEX Listed
Companies
3.
IV
1.
V
Yes
The Company's relevant regulations and employee code of conduct are clearly regulated, requiring
the responsible unit or person not to disclose the content of the case and the identity of the
whistleblower, and to take necessary protective actions to ensure that the whistleblower is not
treated inappropriately or retaliated.
Does the Company assure
malpractice reporters that
they will not be mistreated
for making such reports?
Enhanced information
disclosure
Has the Company disclosed
its integrity principles and
progress onto its website
and MOPS?
If the Company has established business integrity policies in accordance with “Ethical Corporate Management Best Practice Principles for TWSE/TPEX-Listed Companies"
please describe its current practices and any deviations from the Best Practice Principles:
The Company’s “Business Integrity Principles” and “Business Integrity Procedures and Behaviors” have been passed by the Board of Directors and disclosed at the
Company’s website and MOPS. A specialized unit will be empowered to enforce these policies and ensure employees’ compliance.
The Company has disclosed corporate governance and business integrity matters and updated the
progress of such efforts in its annual reports, CSR reports and “Investor Relations-corporate
governance” and the “CSR” section of its website.
No deviations were
found
No deviations were
found
Yes
VI. Other information relevant to understanding the Company’s business integrity (e.g. reviews over business integrity principles):
Courses have been introduced to the e-Learning system so that employees are made aware of the Company’s “Business Integrity Principles” and “Business Integrity
Procedures and Behaviors."
84
3.3.7 Corporate Governance Guidelines and Regulations
Please refer to the Company’s website→ Investor Relations → Corporate Governance → Major Internal
Policies
https:/www.compal.com/investor-relations/corporate-governance/
‧Framework of Corporate Governance
‧Articles of Association
‧Rules of Procedure for Shareholders’ Meetings
‧Regulations for Election of Directors
‧Procedures for Acquisition or Disposal of Assets
‧Procedures for Financial Derivatives Transactions
‧Procedures for Lending Funds to Other Parties
‧Procedures for Endorsements and Guarantees
‧Board of Directors Meeting Guidelines
‧The Responsibilities and Rules for Independent Directors
‧Audit Committee Procedures
‧Remuneration Committee Procedures
‧CSR Committee Procedure
‧Corporate Governance Best Practice Procedures
‧Code of Conduct for Directors and Managers
‧Code of Conduct for Employees
‧Ethical Corporate Management Best Practice Principles
‧Business Integrity Procedures and Behaviors
‧Insider Trading Prevention Procedures
‧Corporate Social Responsibility Best Practice Principles
‧Rules Governing Financial and Business Matters Between this Company and its Affiliated Enterprises
‧Procedures of Application to Suspend and Resume Trading
‧Rules of Self-Evaluation of the Board of Directors and Functional Committees Performance
3.3.8 Other Important Information Regarding Corporate Governance
Please refer to the Company’s website→ CSR
https:/www.compal.com/CSR/ZH/
‧Sustainable Management
‧Stakeholders
‧Supply Chain Management
‧Environment
‧Employee Relationship
‧Charity
‧Download Report
Please refer to the Company’s website→ Stakeholder Communication
https:/www.compal.com/stakeholder-communication-area/
‧Employee Relations
‧Customer Relations
‧Supplier Relations
‧Investor Relations
85
3.3.9
Internal Control Systems
1. Statement of the Internal Control System
Compal Electronics, Inc.
Statement of the Internal Control System
Date: March 26, 2021
The Company states the following with regard to its internal control system during fiscal year 2020, based
on the findings of a self-assessment:
5. The Company is fully aware that establishing, operating, and maintaining an internal control system
are the responsibility of its Board of Directors and management. The Company has established such
a system aimed at providing reasonable assurance of the achievement of objectives in the
effectiveness and efficiency of operations (including profits, performance, and safeguard of asset
security), reliability, timeliness, transparency, and regulatory compliance of reporting, and
compliance with applicable laws, regulations, and bylaws.
2. An internal control system has inherent limitations. No matter how perfectly designed, an effective
internal control system can provide only reasonable assurance of accomplishing the three goals
mentioned above. Furthermore, the effectiveness of an internal control system may change along
with changes in environment or circumstances. The internal control system of the Company contains
self-monitoring mechanisms, however, and the Company takes corrective actions as soon as a
deficiency is identified.
3. The Company judges the design and operating effectiveness of its internal control system based on
the criteria provided in the Regulations Governing the Establishment of Internal Control Systems by
Public Companies (herein below, the “Regulations”). The internal control system judgment criteria
adopted by the Regulations divide internal control into five elements based on the process of
management control: 1. control environment 2. risk assessment 3. control activities 4. information
and communications 5. monitoring activities. Each element further contains several items. Please
refer to the Regulations for details.
4. The Company has assessed the design and operating effectiveness of its internal control system
according to the aforesaid criteria.
5. Based on the findings of the assessment mentioned in the preceding paragraph, the Company
believes that as of Dec 31, 2020 its internal control system (including its supervision and
management of subsidiaries), encompassing internal controls for knowledge of the degree of
achievement of operational effectiveness and efficiency objectives, reliability, timeliness,
transparency, and regulatory compliance of reporting, and compliance with applicable laws,
regulations, and bylaws, is effectively designed and operating, and reasonably assures the
achievement of the above-stated objectives.
6. This Statement will become a major part of the content of the Company's Annual Report and
Prospectus, and will be made public. Any falsehood, concealment, or other illegality in the content
made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities and
Exchange Act.
7. This Statement has been passed by the Board of Directors Meeting of the Company held on March
26, 2021, where 0 of the 15 attending Directors expressed dissenting opinions, and the remainder
all affirmed the content of this Statement.
Compal Electronics, Inc.
Chairman: Sheng-Hsiung Hsu (Rock Hsu)
President: Chung-Pin Wong (Martin Wong)
86
2. If an independent auditor is entrusted with reviewing the internal control system, the independent auditor’s report:
None.
3.3.10 Penalties imposed against the Company and its staff, or penalties imposed by the Company against
its staff for violations of internal control or regulations; state any corrective actions taken in the
most recent years up till the date of the annual report: None.
3.3.11 Major Resolutions Made in Shareholders’ Meeting and Board Meetings
1. Shareholders’ meeting
■ Time: 9:00 am, June 19, 2020
■ Place: B1, No. 581, Ruiguang Rd., Neihu District, Taipei City 11492, Taiwan (R.O.C.)
■ Major Resolutions:
(1) Ratified the Business Report and Financial Statements for 2019.
(2) Ratified the Distribution of Earnings for 2019.
(3) Approval of the release of non-competition restrictions for Directors.
■ Post-meeting Execution:
(1)
The 2020 distribution of cash dividends and capital reserves are summarized as follows:
‧ Cash Dividends: TWD 1 per share
‧ Cash Distributed from Capital Reserve: TWD 0.2 per share
‧ Ex-dividend Date: July 25, 2020
‧ Declaration Date: August 14 2020
2. Board meetings
Date
11th Meeting
(13th Term)
2020.2.14
Major resolutions
1. Approved the issuance of Letter of Support by the Company to facilitate its subsidiaries in
obtaining credit facilities from financial institutions
2. Approved the Company to obtain credit facilities from financial institutions
12th Meeting
(13th Term)
2020.3.30
1. Approved the Internal Control System Statement for the year 2019
2. Approved the proposal of the distribution of compensation to employees and Directors for
the year 2019
3. Approved 2019 Audited Consolidated Financial Statements and Parent Company Only
Financial Statements
4. Approved the Business Report for the year 2019
5. Approved the Business Plan for the year 2020
6. Approved the proposal for Distribution of Earnings for the year 2019
7. Approved the proposal for cash dividends from Earnings for the year 2019
8. Approved the proposal of cash distribution from Capital Surplus
9. Approved the convention of 2020 Annual General Shareholders’ Meeting
10. Approved the targets and plans of Corporate Social Responsibility for the year 2020
11. Approved the CPAs’ independence and competence of performing financial report audit.
12. Approved the enactment to the “Rules of Self-Evaluation of the Board of Directors and
Functional Committees Performance”
13. Approved the enactment to the “Employee Integrity Code”
14. Approved the Company to obtain credit facilities from financial institutions
87
13th Meeting
(13th Term)
2020.5.13
1. Approved senior level management change
2. Approved the amendment to the “Rules and Procedures for Board of Directors Meetings”
3. Approved the amendment to the “Audit Committee Charter”
4. Approved the amendment to the “Remuneration Committee Charter”
5. Approved the amendment to the “Corporate Governance Best Practice Principles”
6. Approved the amendment to the “Corporate Social Responsibility Best Practice Principles”
7. Approved the release of non-competition restrictions for the managers
8. Approved the release of non-competition restrictions for Directors
9. Approved the first mid-year employees’ bonus of the year 2020
10. Approved employees’ salary adjustment of the year 2020
11. Approved the proposal for the appropriated percentage for the remuneration of employees
and Directors of the year 2020
12. Approved fund loan to 100% owned subsidiary Compalead Eletrônica do Brasil Indústria e
Comércio Ltda.
13. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
14. Approved the Company to obtain credit facilities from financial institutions
1. Approved the relevant matters regarding the distribution of the year 2020 cash dividends and
14th Meeting
(13th Term)
2020.6.30
cash distribution from capital surplus to shareholders
2. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
3. Approved the Company to obtain credit facilities from financial institutions
15th Meeting
(13th Term)
2020.8.12
16th Meeting
(13th Term)
2020.11.12
17th Meeting
(13th Term)
2021.2.25
18th Meeting
(13th Term)
2021.3.26
1. Approved senior level management change
2. Approved the appointment of the Financial Officer
3. Approved the appointment of replacement officer in charge of monitoring and control of risks
arising from financial derivative transactions
4. Approved the Directors’ Remuneration for the year 2019
5. Approved secondthe second mid-year employees’ bonus for the year 2020
6. Approved investment in Raypal Biomedical Co., Ltd.
7. Approved a loan to Henghao Technology Co. Ltd.
8. Approved a loan to Unicom Global, Inc.
9. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
10. Approved the Company to obtain credit facilities from financial institutions
1. Approved the compensation of Employee bonuses in cash of year 2019
2. Approved the proposal for 2020 year-end employees’ bonus
3. Approved approval of annual audit plan for year 2021
4. Approved investment in ARCE Therapeutics, Inc.
5. Approved the Company to obtain credit facilities from financial institutions
1. Approved senior level management change
2. Approved the issuance of Letter of Support by the Company to facilitate its subsidiaries in
obtaining credit facilities from financial institutions
3. Approved the Company to obtain credit facilities from financial institutions
4. Approved the amendment to the “Audit Committee Charter”
1. Approved the Internal Control System Statement for the year 2020
2. Approved the proposal of the distribution of compensation to employees and Directors for
the year 2020
3. Approved 2020 Audited Consolidated Financial Statements and Parent Company Only
Financial Statements
4. Approved the Business Report for the year 2020
88
5. Approved the Business Plan for the year 2021
6. Approved the proposal for Distribution of Earnings for the year 2020
7. Approved the proposal for cash dividends from Earnings for the year 2020
8. Approved the proposal of cash distribution from Capital Surplus
9. Approved the relevant matters regarding the distribution of the year 2020 cash dividends and
cash distribution from capital surplus to shareholders
10. Approved the proposal on election of the 14th term of Directors
11. Approved the convention of 2021 Annual General Shareholders’ Meeting
12. Approved candidates list of Directors for the 14th term
13. Approved the change of independent auditor
14. Approved CPAs’ independence and competence of performing financial report audit.
15. Approved the proposal of donation to Hsu Chauing Social Welfare and Charity Foundation
16. Approved the first mid-year employees’ bonus of the year 2021
17. Approved the proposal for providing Corporate Guaranty Letter to Quanta Computer Inc.
18. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
1. Approved for the amendment to the “Regulations for Election of Directors”
2. Approved for the amendment to the “Rules Governing the Scope of Powers of Independent
Directors”
3. Approved for the amendment to the “Remuneration Committee Charter”
4. Approved for the amendment to the “Rules Governing Financial and Business Matters
Between this Corporation and its Affiliated Enterprises”
5. Approved for the amendment to the “Procedures for Ethical Management and Guidelines for
Conduct”
19th Meeting
(13th Term)
2021.5.12
6. Approved for the release of non-competition restrictions for the managers
7. Approved for the release of non-competition restrictions for Directors
8. Approved for employees’ salary adjustment of the year 2021
9. Approved for the proposal for the appropriated percentage for the remuneration of
employees and Directors of the year 2021
10. Approved for the targets and plans of Corporate Social Responsibility for the year 2021
11. Approved for fund loan to 100% owned subsidiary Compalead Eletrônica do Brasil Indústria e
Comércio Ltda.
12. Approved for fund loan to 100% owned subsidiary Compal Eletrônica Da Amazônia Ltda.
13. Approved for the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
14. Approved for the Company to obtain credit facilities from financial institutions
3.3.12 Major Issues of Record or Written Statements Made by Any Director or Supervisor Dissenting to
Important Resolutions Passed by the Board of Directors: None.
3.3.13 Resignation or Dismissal of the Company’s Key Individuals, Including the Chairman, CEO, and
Heads of Accounting, Finance, Internal Audit, Corporate Governance and R&D:
Title
Name
Date of appointment
Date of dismissal
Reasons for dismissal
Financial Officer
Ching-Hsiung Lu
1989.10.1
2020.8.12
Internal position adjustment
89
3.4
Information Regarding the Company’s Audit Fees and Independence
Accounting Firm
Name of CPA
Period Covered by CPA’s Audit
Remarks
KPMG
Chien, Szu Chuan
Au, Yiu Kwan
2020.01.01~2020.12.31
-
■ CPA Public Expense Information and Matrix
Fee Range
1
2
3
4
5
6
Under TWD 2,000,000
TWD 2,000,000 ~ TWD 4,000,000
TWD 4,000,000 ~ TWD 6,000,000
TWD 6,000,000 ~ TWD 8,000,000
TWD 8,000,000 ~ TWD 10,000,000
Over TWD 100,000,000
Fee Items
Audit Fee
Non-audit Fee
-
-
-
-
-
10,420
-
-
4,292
-
-
-
Unit: TWD Thousands
Total
-
-
4,292
-
-
10,420
(1) Non-audit fees paid to CPAs, accounting firms, and affiliated companies thereof that amount to
more than 1/4 of the audit fees:
Unit: TWD Thousands
Firm Name of CPA
Audit
Fee
Non-audit Fee
System
Design
Company
Registration
Human
Resource
Others
Subtotal
Period Covered by CPA’s
Audit
Remarks
KPMG
Chien, Szu
Chuan
Au, Yiu-Kwan
10,420
-
-
-
4,292
4,292
2020.01.01~2020.12.31
-
Note: Other non-audit fees: Transfer pricing report of $600,000, tax consultation of $3,492,000, and others of $200,000.
(2) Changes in the accounting firm that result in lesser audit fees paid in comparison to the previous
year: None
(3) Reduction of audit fees by more than 10% compared to the previous year: None
90
3.5
Replacement of CPA:
1. About the former CPA
Date of replacement
Approved by the Board of Directors on March 26, 2021
Reason and explanation for
replacement
Due to adjustments in work and duties at KPMG, the CPAs were changed from Chien, Szu
Chuan and Au, Yiu-Kwan to Kuo, Kuan-Ying and Chien, Szu Chuan starting from 1Q 2021.
Party involved
Situation
CPA
Commissioner
Voluntarily terminated the
Not applicable
Not applicable
commission
Will no longer accept
Not applicable
Not applicable
(continue) the commission
State whether the commissioner
or the CPA terminated the service
or declined the commission
Other audit report opinions and
causes issued within the last two
years other than unqualified
opinion
Did he/she have opinions that
Yes
differed from that of the
publisher?
N.A.
Accounting principles or practices
Disclosure of financial report
Scope or step of auditing
Other
N.A.
Description
V
Other items of disclosure
(Contents that should be disclosed
as covered in Clauses 1.4~1.7,
Section 6, Article 10 of this
guideline)
2. About the succeeding CPA
Name of accounting firm
KPMG
N.A.
Name of CPA
Date commissioned
Kuo, Kuan-Ying and Chien, Szu Chuan
Approved by the Board of Directors on March 26, 2021
Items of consultation and results
on the accounting methods for
specific transactions, accounting
principles and potential opinions
for financial report prior to
commissioning
Written opinion from succeeding
CPA on items of disagreement with
the former CPA
N.A.
N.A.
3.6
If the chairman, president, and financial or accounting manager of the Company had worked for
the accounting firm or related parties thereof in the most recent year, the name, title, and the term
of service with the accounting firm or the related party must be disclosed: None.
91
3.7
Changes in Shareholding of Directors, Supervisors, Managers and Major Shareholders
2020
Up till April 27, 2021
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
Unit: shares
0
0
0
0
0
0
0
606,904
0
0
0
0
0
0
0
0
0
0
0
Title
Name
Chairman
Sheng-Hsiung Hsu
Vice Chairman
And CSO
Jui-Tsung Chen
Binpal Investment Co., Ltd.
Director
Representative:
Wen-Being Hsu
Kinpo Electronics, Inc.
Representative:
Chieh-Li Hsu
Representative:
Shyh-Yong Shen
Charng-Chyi Ko
Sheng-Chieh Hsu
Yen-Chia Chou
Chung-Pin Wong
Chiung-Chi Hsu
Ming-Chih Chang
Anthony Peter Bonadero
Sheng-Hua Peng
Min-Chih Hsuan
Duei Tsai
Duh-Kung Tsai
Chen Chang Hsu
Chun-Te Shen
Director
Director
Director
Director
Director and
President
Director
Director
And EVP
Director
Director
And EVP
Independent
Director
Independent
Director
Independent
Director
Executive Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
Kuo-Chuan Chen
(306,000)
Chyou-Jui Wei
Wen-Da Hsu
Shi-Kuan Chen
Chi-Wai Wan
0
0
0
0
92
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-
0
(117,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2020
Up till April 27, 2021
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
Title
Name
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Senior Vice
President
Min-Tung Weng
Lo-Chun Lee
Sheng-Hung Li
Bor-Heng Chen
Chung-Hsing Tan
Vice President Chih-Chuan Cheng
0
0
0
0
0
0
Vice President Ching-Hsiung Lu
(110,000)
Vice President Po-Tang Wang
Vice President Tzong -Ming Wang
Vice President Fu-Chuan Chang
Vice President Yung-Nan Chang
Vice President Yong-Ho Su
Vice President
Jyh-Shyan Liang
Vice President Chiao-Lie Huang
Vice President Yi-Yun Chang
Vice President Hsin-Kung Mao
Vice President Hsin-Hsiung Huang
Vice President Shih-Hong Huang
Vice President Yi-Chiang Chiu
Vice President
Jui-Chun Shyur
Vice President Ta-Chun Wang
Vice President
Jen-Liang Lin
General
Counsel
Peng-Hong Chan
Vice President Wei-Chia Wang
Vice President,
Accounting
and Corporate
Governance
Officer
Cheng-Chiang Wang
Vice President Cheng-Hui Su
Vice President Tu-Chuan Tu
Vice President Chang-Chieh Tien
Vice President
and Financial
Officer
Guo-Dung Yu
Vice President Peng Kuee Lau
Vice President Yau-De Chiou
0
0
10,000
0
0
(20,000)
0
0
0
0
0
(8,000)
0
0
(50,000)
0
0
0
0
0
0
0
-
-
93
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-
-
0
0
(9,000)
0
0
0
(50,000)
0
0
0
0
0
(5,000)
0
(160,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Title
Name
Internal Audit
Officer
Po-Wen Hsieh
Senior Vice
President
Senior Vice
President
Senior Vice
President
Pei-Yuan Chen
Ying Chang
Wei-Chang Chen
Vice President Shyh-An Lee
Vice President Hsiao-Wei Lo
2020
Up till April 27, 2021
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
0
0
0
0
0
20,000
0
0
0
0
0
0
0
-
-
-
-
-
0
-
-
-
-
-
Note: 1. Change in representative of the Company’s institutional Director of Kinpo Electronics, Inc., and the former Shyh-Yong
Shen was re-appointed to Chieh-Li Hsu, on July 21, 2020.
2. Senior Vice Presidents Pei-Yuan Chen, Ying Chang, Wei-Chang Chen and Vice Presidents Shyh -An Lee, Hsiao-Wei Lo
resigned in 2020. Vice President Yau-De Chiou took office in 2021.
3.7.1 Shares Trading with Related Parties:
Name
Reason
for
transfer
Transaction
date
Counterparty
Sheng-Chieh Hsu
Inherit
2020.09.23
Xin-Huang Hsu
Counterparty's relationship
with the Company, Directors,
Supervisors, Managers, and
shareholders with more than
10% ownership interest
Mother and Son
Sheng-Chieh Hsu
Inherit
2020.09.25
Xin-Huang Hsu
Mother and Son
Ching-Hsiung Lu
Gift
2020.07.07
Shao-Hsuan Lu
fFther and Daughter
Shares
Transaction
price
377,617
229,287
110,000
19.85
19.85
19.25
3.7.2
Shares Pledged with Related Parties: None
94
3.8
Relationship among the Top Ten Shareholders
April 27, 2021 Unit: Shares
Name
Self
Shares held
Shareholdings of spouse
and minors
Total shares held in
the names of others
Shares held
Shares
Shareholding
Percentage
Shares
Shareholding
Percentage
Shares
Shareholding
Percentage
Spouse, relative of
second degree or
closer, and
relationships among
top 10 shareholders
Name Relationship
164,522,000
3.73%
151,628,692
3.44%
-
-
-
-
8,975,401
0.20% 17,107,025
0.39%
115,244,179
2.61%
94,300,991
2.14%
0
0%
86,878,000
1.97%
76,966,000
1.75%
0
0%
68,275,000
1.55%
57,487,900
1.30%
53,641,652
1.22%
-
-
0
-
-
0
-
-
-
-
-
0%
-
-
0%
-
-
-
0
0
0
0
0
0
0
0
0
0
0
0% N/A
N/A
0% N/A
N/A
0%
0% N/A
N/A
0% N/A
N/A
0%
0% N/A
N/A
0% N/A
N/A
0%
0% N/A
0% N/A
N/A
N/A
52,357,000
1.19%
-
-
0
0% N/A
N/A
Silchester International
Investors International
Value Equity Trust
Kinpo Electronics Inc.
Representative:
Sheng-Hsiung Hsu
Yuanta/P-shares
Taiwan Dividend Plus
ETF
Fubon Life Insurance
Co., Ltd
Representative :
Ming-Hsing Tsai
Silchester International
Investors International
Value Equity Group
Trust
Taiwan Cooperative
Bank
Representative :
Lei, Chung-Ta
New Labor Pension
Fund
Vanguard Emerging
Markets Stock Index
Fund, A Series of
Vanguard International
Equity Index Funds
JPMorgan Chase Bank
N.A., Taipei Branch in
custody for Vanguard
Total International
Stock Index Fund, a
series of Vanguard Star
Funds
Silchester International
Investors International
Value Equity Taxable
Trust
95
3.9
Ownership of Shares in Affiliated Enterprises
December 31, 2020 Unit: Shares; %
Investees (Note)
Invested by the Company
Held by directors,
supervisors, managers, and
directly/indirectly
controlled entities
Aggregate investment
Shares
Shareholding
percentage
Shares
Shareholding
percentage
Shares
Shareholding
percentage
Panpal Technology Corp.
Gempal Technology Corp.
Hong Ji Capital Co., Ltd.
Hong Jin Investment Co., Ltd.
HippoScreen Neurotech Corp.
SHENNONA CO.,Ltd.
Aco Smartcare Co.,Ltd.
ARCE Therapeutics, Inc.
Raypal Biomedical Co., Ltd.
Rayonnant Technology Co.,
Ltd.
RiPAL Optotronics Co., Ltd.
Unicom Global Inc.
Palcom International
Corporation
Henghao Technology Co., Ltd.
Compal Broadband Networks
Inc.,
Crownpo Technology Co., Ltd.
Kinpo Group Management
Consultant Company
Mactech Co., Ltd.
General life Biotechnology
Co., Ltd.
Lead-honor Optoelectronic
Co., Ltd.
Infinno Technology
Corporation
Allied Circuit Co., Ltd.
Arcadyan Technology Corp.
Maxima Ventures I, Inc.
Avalue Technology Inc.
Core Profit Holdings Ltd.
Flight Global Holding Inc.
Just International Ltd.
High Shine Industrial Corp.
Compal International Holding
Co., Ltd.
20,014,952
100.00
500,000,000
90,000,000
100,000,000
29,500,000
2,100,000
600,000
100,000,000
20,000,000
3,446,143
-
100.00
-
100.00
-
100.00
-
100.00
-
70.00
-
100.00
-
52.04
32.79 7,805,110
30.00 2,466,999
- 500,000,000
-
90,000,000
- 100,000,000
29,500,000
-
2,100,000
-
600,000
-
- 100,000,000
12.80
30.68
27,805,110
5,913,412
29,500,000
100.00
6,000,000
10,000,000
100.00
100.00
10,000,000
100.00
20,014,952
100.00
-
-
-
-
-
-
-
-
-
-
29,500,000
6,000,000
10,000,000
10,000,000
29,060,176
43.42 13,672,854
20.43 42,733,030
3,738,668
33.23 6,230,544
55.39
9,969,212
300,000
37.50
300,000
37.50
600,000
21,756,192
52.88
274,954
0.67
22,031,146
100.00
100.00
100.00
100.00
70.00
100.00
52.04
45.58
60.68
100.00
100.00
100.00
100.00
63.89
88.62
75.00
53.55
50.00
15,000,000
50.00
2,772,000
42.00
-
-
-
15,000,000
- 2,772,000
42.00
5,649,625
27.20
433,864
2.08
6,083,489
10,157,730
41,304,504
126,000
14,924,070
147,000,000
89,755,495
48,010,000
42,700,000
3,000
20.42 7,021,701
19.82 31,867,024
22.55
21.26
695,000
100.00
-
100.00
-
100.00
-
53.58 37,000,000
14.11 17,179,431
15.29 73,171,528
0.54
0.99
129,000
15,619,070
- 147,000,000
89,755,495
-
48,010,000
-
79,700,000
46.42
53,001,000
100.00
-
-
53,001,000
29.28
34.53
35.11
23.09
22.25
100.00
100.00
100.00
100.00
100.00
96
Investees (Note)
Invested by the Company
Held by directors,
supervisors, managers, and
directly/indirectly
controlled entities
Aggregate investment
Shares
Shareholding
percentage
Shares
Shareholding
percentage
Shares
Shareholding
percentage
Big Chance International Co.,
Ltd.
Compal Rayonnant Holdings
Limited
Auscom Engineering Inc.
Compal Europe (Poland) Sp. z
o.o.
CGS Technology(Poland) Sp. z
o.o.
Bizcom Electronics, Inc.
Compal Electronics (Holding)
Ltd.
90,820,000
100.00
12,500,000
100.00
3,000,000
100.00
136,080
100.00
100
100.00
100,000
100.00
1,000
100.00
Compalead Electronics B.V.
6,426,516
100.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
90,820,000
100.00
12,500,000
3,000,000
136,080
100
100,000
1,000
6,424,516
100,000
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Etrade Management Co., Ltd.
46,900,000
65.23 25,000,000
34.77
71,900,000
Webtek Technology Co., Ltd.
100,000
100.00
Forever Young Technology
Inc.
50,000
100.00
-
-
-
-
50,000
100.00
Lipo Holding Co., Ltd.
98,000
49.00
102,000
51.00
200,000
100.00
Ascendant Private Equity
Investment Ltd.
31,253,125
34.72 44,750,000
49.72 76,003,125
84.44
UniCore BioMedical Co., Ltd.
20,000,000
100.00
Shennona Corporation
2,600,000
100.00
Note: Investments made by the Company using the Equity Method.
-
-
-
-
20,000,000
2,600,000
100.00
100.00
97
IV. Capital Overview
4.1
Capital and Shares
4.1.1
Source of Capital
Year Month
Issuance
Price
Authorized capital
Paid-up capital
Shares
Amount (TWD )
Shares
Amount (TWD )
Source of capital
Remarks
Paid in properties
other than cash
Others
May 12, 2021
2018
2018
3
5
Share
Type
Ordinary
shares
10
6,000,000,000
60,000,000,000
4,419,191,625
44,191,916,250
Cancellation of Restricted Employee
N.A.
Change of capital approved by the Ministry of
Shares of $10,890,000
Economic Affairs on March 21, 2018
10
6,000,000,000
60,000,000,000
4,407,146,625
44,071,466,250
Cancellation of Restricted Employee
N.A.
Change of capital approved by the Ministry of
Shares of $120,450,000
Economic Affairs on May 29, 2018
Outstanding shares (public listed)
Unissued shares
Total
Authorized capital
Remarks
4,407,146,625
1,592,853,375
6,000,000,000
Approved to include 100,000,000 shares of employees shares and corporate
bonds with warrant in capital.
■ Shelf registration system information: None
98
4.1.2 Status of Shareholders
Analysis
Gover nment
Agencies
Financial
Institutions
Other
Institutions
Foreign
Institutions and
Natural Persons
Domestic
Natural
Persons
Treasury
stocks
Total
Number of
Shareholders
Shareholding
(shares)
Percentage
3
41
316
1,154
189,078
0
190,592
8 379,896,895 552,799,860
2,121,826,929 1,352,622,933
0 4,407,146,625
0.00%
8.62%
12.54%
48.15%
30.69%
0.00%
100.00%
April 27, 2021
4.1.3 Share Ownership Distribution
Range of Shareholding
(Unit: Shares)
1 ~ 999
1,000 ~ 5,000
5,001 ~ 10,000
10,001 ~ 15,000
15,001 ~ 20,000
20,001 ~ 30,000
30,001 ~ 40,000
40,001 ~ 50,000
50,001 ~ 100,000
100,001 ~ 200,000
200,001 ~ 400,000
400,001 ~ 600,000
600,001 ~ 800,000
800,001 ~ 1,000,000
1,000,001 and over
Total
Number of
Shareholders
Shareholding (Shares)
Percentage
April 27, 2021
42,615
105,504
21,809
7,326
4,066
3,376
1,456
929
1,695
751
345
162
88
54
416
190,592
8,273,748
230,410,728
166,654,104
89,683,423
74,486,974
85,054,607
51,497,708
43,047,946
122,216,140
105,456,615
95,262,475
79,084,832
60,237,076
48,493,209
3,147,287,040
4,407,146,625
0.19%
5.23%
3.78%
2.03%
1.69%
1.93%
1.17%
0.98%
2.77%
2.39%
2.16%
1.79%
1.37%
1.10%
71.42%
100.00%
4.1.4 List of Major Shareholders
Shareholder’s name
Silchester International Investors International Value Equity Trust
Kinpo Electronics, Inc.
Yuanta/P-shares Taiwan Dividend Plus ETF
Fubon Life Insurance Co., Ltd
Silchester International Investors International Value Equity Group Trust
Taiwan Cooperative Bank
New Labor Pension Fund
Vanguard Emerging Markets Stock Index Fund, A Series of Vanguard
International Equity Index Funds
99
April 27, 2021
Shares held
164,522,000
151,628,692
115,244,179
94,300,991
86,878,000
76,966,000
68,275,000
57,487,900
Percentage (%)
3.73%
3.44%
2.61%
2.14%
1.97%
1.75%
1.55%
1.30%
JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Total
International Stock Index Fund， a series of Vanguard Star Funds
Silchester International Investors International Value Equity Taxable Trust
53,641,652
1.22%
52,357,000
1.19%
4.1.5
Market Price, Net Worth, Earnings, and Dividends per Share
Measurement
Year
Per-share
market
price
Per-share
net worth
(Note)
Earnings
per share
Per-share
dividend
High
Low
Average
Before dividend
After dividend
Before
adjustment
After
adjustment
Weighted average
outstanding shares
Earnings per share
Weighted average
outstanding shares
Earnings per share
Cash dividends
Stock
dividends
From earnings
From capital
reserves
Cumulative unpaid
dividends
P/E ratio
Price to dividends ratio
Cash dividend yield
2019
20.65
17.05
18.79
24.32
23.11
2020
21.00
15.30
18.88
24.52
22.90 (Note)
Year-to-date
March 31, 2021
27.30
20.60
22.41
23.59
-
4,357,129,194
4,357,129,194
4,357,129,194
1.60
2.15
0.60
4,357,129,194
4,357,129,194
1.60
1.20
-
-
-
2.15
1.60 (Note)
-
-
-
-
-
-
-
-
-
Analysis of
investment
returns
-
-
-
Note: The 2020 distribution of earnings was resolved at the March 26, 2021 Board of Directors’ Meeting
8.78
11.80 (Note)
8.47% (Note)
11.74
15.66
6.39%
4.1.6 Dividend Policy and Implementation Status
1. Dividend Policy
If there is any profit after closing of books in a given year, the Company shall first defray tax due, cover
accumulated losses and set aside ten percent (10%) of it as legal reserve and then set aside or reverse
a special reserve in accordance with laws and regulations. The balance of earnings available for
distribution is composed of the remainder of the said profit and the unappropriated retained earnings
of previous years. The Board of Directors may set aside a certain amount to cope with the business
operation conditions, and shall prepare the proposal for distribution of the balance amount thereof
after a resolution has been adopted and then allocated in accordance with Second Paragraph of this
Article or Article 29.
The Company authorizes the Board of Director to distribute all or part of the dividends and bonuses,
capital surplus or legal reserve in cash to shareholders after a resolution has been adopted by a majority
vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of
100
Directors; and in addition thereto a report of such distribution shall be submitted to the shareholders’
meeting.
The lifecycle of the industry of the Company is in the growing stage. To meet the future capital needs
and in consideration of capital budget, long-term financial planning and onshore and offshore
competition condition, as well as the need of shareholders for cash flow, if there is any profit after close
of books, the dividend and bonds to be distributed to shareholders should not be less than thirty
percent (30%) of the after-tax profit of such year and the cash dividend allocated by the Company each
year shall not be lower than ten percent (10%) of the total dividend (including cash and share dividend)
for such year.
2. The Board of Directors' resolution on dividend distribution
‧ The 2020 distribution of earnings of shareholders’ dividends in the amount of TWD 5,288,575,950
was approved by the Board of Directors Meeting on March 26, 2021. The aforementioned amount is
set to be distributed as an all-cash dividend of TWD 1.2 per share and incurred capital surplus
generated from the excess of the issuance price over the par value of the capital stock in the amount
of TWD 1,762,858,650, or TWD 0.4 per share. The total cash distribution amounts to TWD
7,051,434,600.
‧ The Board of Directors has approved to set an ex-dividend record date for distribution and record
date of cash distribution from capital surplus on May 1, 2021, and cash distribution has been paid out
on May 21, 2021
3. When there is a significant change in the expected dividend policy, it should be stated: None.
4.1.7 Impact on 2020 Business Performance and EPS resulting from Stock Dividend Distribution:
Not Applicable (The Company did not disclose 2021 annual financial forecast)
4.1.8 Employees’ and Directors’ Compensation
1. Employees’ and Directors’ compensation policies as stated in the Articles of Association
When the Company makes a profit in a fiscal year, the Company’s pre-tax profits in such fiscal year, prior to the
deduction of compensation to employees and Directors, shall be distributed to employees as compensation in
the amount of no less than two percent (2%) thereof and to Directors as compensation in an amount of no more
than two percent (2%) of such profits. In the event that the Company has accumulated losses, the Company shall
reserve an amount to offset the accumulated losses.
The compensation to employees as mentioned above may be distributed in the form of stock or cash and
employees entitled to receive said stock/cash may include the employees of the Company’s subordinate
companies pursuant to the Company Act.
2. Basis for estimating employees ‘and Directors’ compensation and stock dividends, and accounting treatments
101
for any discrepancies between the amounts estimated and the amounts paid.
‧ Compensation to Directors and employees, as denoted in the Articles of Association, shall be estimated
based on income before taxes prior to the subtraction of Directors and employee compensation during the
current year and multiplied by the ratio as denoted in the Articles of Association (shall not be more than
2% or less than 2% of the remainder.)
‧
‧
If the compensation approved for distribution to employees is to be in the form of common shares, the
number of shares is determined by dividing the amount of the compensation by the closing price of the
shares on the day preceding the Board of Directors’ meeting.
If the actual amounts differ from the amounts estimated, the differences are recorded as gains/losses in
the subsequent year as a change in accounting estimate.
3.
2020 employee compensation proposal passed by the Board of Directors
‧ Accrued employee compensation is TWD 974,693,802 and Directors compensation is TWD 51,540,800.
‧
If the estimated distribution amount differs from the amounts estimated in accrued expenses, the variance,
reason, and resolution should be disclosed: No variance.
‧ The proposed distribution of employee stock compensation, and the size of such an amount as a
percentage of the sum of the after-tax net income stated in the individual financial reports for the current
period and total employee compensation: Not applicable (no employee stock compensation).
4. Actual distribution of 2019 employee and Directors compensation:
‧ The employee compensation is TWD 731,321,511 and the Directors compensation is TWD 38,671,525.
‧ The 2019 actual distribution of employee and Directors compensation remained as proposed by the Board
of Directors.
4.1.9 Company Buyback of Own Shares: None
4.2
Bonds:
4.2.1 Overseas Corporate Bonds: None
4.2.2 Domestic Corporate Bonds: None
4.2.3 Exchangeable Bonds: None
4.2.4 Blanket declaration of issued corporate bonds: None
4.2.5 Corporate bonds with warrants: None
4.3
Preferred shares: None
102
4.4 Global Depository Receipts
1.
Issuance
Details
Date of issue:
November 9, 1999
May 21, 2001
Issuance and trading location
Total sum issued
Issuance price per unit
Number of units issued
Luxembourg
USD 122,160,000
USD 15.27
8,000,000 units
Source of represented securities
Participating shareholder(s):
Kinpo Electronics, Inc.
Luxembourg
USD 174,816,000
USD 6.07
28,800,000 units
1.
Participating shareholder(s): 44,000,000
shares contributed by
(1) Kinpo Electronics, Inc.
(2) Panpal Technology Corporation
(3) Gempal Technology Corporation
2. New cash issue of Compal shares:
1,000,000,000 shares
144,000,000 ordinary shares of Compal
Electronics
Quantity of represented
securities
40,000,000 ordinary shares of Compal
Electronics
1.
GDR holders’
rights and obligations
2.
Voting rights:
According to the terms of the depository agreement and the laws of the Republic
of China, the beneficiary certificate holder is entitled to the voting rights of shares
represented under the beneficiary certificate.
Rights to dividend distribution, share subscription, and other rights:
Unless otherwise specified in the agreement, the GDR carries identical rights as do
ordinary shares
Trustee
Depository bank
Custodian
Unredeemed balance
Allocation of expenses incurred
at issuance and over the duration
Key terms of the depository and
custodian agreements
Per
Unit
Market
Price
2020
Year-to-date
May 12, 2021
High
Low
Average
High
Low
Average
N.A.
The Bank of New York
Mega International Commercial Bank
2,881,640 units (May 12, 2021)
Borne by participating shareholder(s)
N.A.
The Bank of New York
Mega International Commercial Bank
Allocated proportionally between the
Company and participating shareholders
See descriptions below
USD $ 3.74
USD $ 2.58
USD $ 3.21
USD $ 4.94
USD $ 3.70
USD $ 4.18
2. Key terms of the depository and custodian agreement
(1) Key terms of the depository agreement
■ Depository receipts
Each depository certificate represents 5 Compal ordinary shares.
■ Transfer/settlement
Ownership and transfer of depository receipts shall be certified through the book-entry settlement system of
The Depositary Trust Company ("DTC"). Depository receipts shall be settled over DTC's book-entry system.
Unless otherwise specified by law, ownership and transfer of depository receipts may only be completed over
DTC's records. In Europe, depository receipts are still held under DTC, but transactions are settled through the
book-entry system of Euroclear or Clearstream.
103
■ Deposit and redemption of Compal shares
Three months after issuance of depository receipts, holders may request to redeem and receive shares
represented by the depository receipt after paying the relevant charges according to the terms of the depository
contract, or request the depository institution to sell shares represented by the depository receipt (provided
that Compal has placed an adequate quantity of ordinary shares for sale with the depository institution). Once
the shares represented by the depository receipt have been sold, the depository institution shall deduct the
relevant charges, taxes, and government levies from the sales proceeds, and convert the remainder into USD
before paying the depository receipt holder who has requested redemption. Subsequent issues of depository
receipts are subject to the procedures outlined by the Securities and Futures Institute of the Republic of China,
the terms of the depository contract, and the consent of both Compal and the depository institution.
The depository receipts have been listed on the Luxembourg Stock Exchange and are traded through the PORTAL
of National Association of Securities Dealers Inc.
■ Distribution of dividends, gains, and rights
For cash dividends on Compal shares, the depository institution is required to convert the amount of cash
received into USD according to the laws of the Republic of China, deduct taxes and relevant charges, and
distribute the remainder to depository receipt holders based on the percentage of shares represented in each
depository receipt.
For stock dividends on Compal shares (including shares issued against capitalized earnings and reserves), the
depository institution is required to adjust the number of shares represented in each depository receipt
according to the laws of the Republic of China and terms of the depository contract. DTC will then produce
additional depository receipts based on the size currently held and distribute them to the respective holders.
Sale of stock dividends is subject to compliance with the terms of the depository contract and laws of the
Republic of China.
■ Tax
‧ Any dividends (cash or stock) paid to the depository institution are subject to withholding tax at the
prevailing tax rate when payment is made.
‧ Holders who request the redemption of depository receipts by having the depository institution sell the
underlying shares through the Taiwan Stock Exchange Corporation (TWSE) will be charged securities
transaction tax at the prevailing rate when the sale takes place.
‧ Capital gains tax on securities transactions is currently suspended according to the laws of the Republic
of China. Practices may be adjusted to reflect changes in the laws of the Republic of China.
(2) Key terms of the custodian agreement
■ Placing securities for the issuance of global depository receipts
Compal is required to place securities with the custodian and hand over all documents mentioned in the
custodian contract, which provide the basis for the issuance of global depository receipts.
■ Notifying the depository institution for the issuance of depository receipts
Once the custodian has received Compal's ordinary shares, the custodian shall immediately notify the
depository institution for the issuance of global depository receipts. As soon as the depository institution
104
receives the above notice, it shall produce and issue global depository receipts representing the number of
entitled securities to the parties mentioned in the custodian's notice above.
■ Delivery of securities upon redemption of depository receipt
If a holder requests the redemption of depository receipts, the depository institution shall immediately notify
the custodian to transfer the number of securities represented to the party specified by the depository
institution. The custodian may collect a sum sufficient to cover the taxes or expenses incurred from the party
specified by the depository institution as a result.
■ Confirmation of share quantity on baseline date
The custodian is required to report to the depository institution the number of securities held in custody by the
end of each baseline date.
4.5
Employee Warrants: None
4.6
Subscription of New Shares by Employees and Restricted Shares: None
4.7
Status of New Shares Issuance in Connection with Mergers and Acquisitions: None
4.8
Financing Plans and Implementation:
1. Execution of the previous issue or private placement of securities that have not been completed: None
2. The latest three-year issuance or private placement of securities has been completed and the project benefits
have not yet been revealed: none
105
V. Operational Highlights
5.1
Business Activities
5.1.1 Business Scope
1. Main areas of business and revenue contribution
■ Main areas of business operations
The development, design, manufacture, and sales of Notebooks, Ultraslim notebooks, 2-in-1 Notebooks, AIO,
5G Module and Products, Tablets, Smartphones, Smart Wearable Devices, Smart Hearable Devices, Smart
Display Products, AR/VR Smart Devices, Smart Home Devices, IoT Vertical Solutions, Smart Medical and
Healthcare, Auto electronics, and Servers.
■ 2020 Revenue contribution
Major Divisions
(%) of Total Sales
5C electronics
Other products
Total
99.7%
0.3%
100%
2. Current and future product development
■ Notebooks
In 2020, Compal adopted the most efficient R&D methods for the launch of its latest notebook PC hardware,
which included laptops with 11th generation processors and the AMD new Ryzen platform. Compal has special
expertise in system integration, R&D, and manufacturing to assist clients in the development and mass-
production of new products with the latest specifications in a relatively short time. The Compal price-
competitive, slim, and stylish notebooks were launched at a time when the market favored more affordable
and portable devices. Then, the pandemic changed peoples’ daily habits. The demand for work-from-home and
e-learning devices triggered by the COVID-19 pandemic has driven strong consumption of notebook devices.
Compal continues to release commercial and education laptops to meet market demand.
In addition, with consistent attention, the gaming market continues to grow due to the pandemic. After years
of operation as an ODM of gaming laptops for our brand partners, Compal has accumulated profound
experience in their design and development. In 2021, Compal will continue to conduct high-end technology in
its flagship gaming laptop and ultraslim gaming devices. Compal will continue to make significant investments
in R&D to create a win-win situation with our customers to increase their market share.
106
■ Ultraslim Notebooks
Innovative technology and extensive R&D capabilities have allowed Compal to maintain a leading position in
the industry. Compal produces an ultra-thin Notebook, which uses the latest generation processor from Intel
and AMD. Not only is it slim and light, but it offers excellent performance and allows users to really be
productive. Compal will introduce more Ultra slim notebooks in 2021. In addition to compatibility with the Intel
design specifications, like “Intel Evo,” for their latest generation products, we will also be introducing slimmer
products at a lower price to meet market demand. They will feature the stylish and elegant body that is typical
of Compal products, yet offer computing power that can rival a high-performance PC. Compal will also continue
to develop newer and more competitive technologies that consumers around the world will get to enjoy, but
will also give our clients faster access to these markets. In addition, gaming notebooks, which usually cannot
have a slim design will start to phase in nVIDIA Max-Q technology to achieve both high-performance and an
Ultra slim design.
■ 2-in-1 Notebooks
The 2-in-1 Notebook is a novel product that borrows the concept of “Transformers” – in addition to having a
standard laptop keyboard for te usual functional operations, the product also features Tablet PC touch
versatility. The touch-sensing display module coupled with the latest Microsoft Windows 10 OS attracts both
the consumer base for standard laptops as well as that for tablet PCs. We have utilized our rich R&D experience
to present several innovative concepts that incorporate exclusive technology as well as materials. The fan-less
design of the 2-in-1 Notebook with its different designs and form factors, has allowed the Company to create
new market demand and earn unanimous praise from clients and consumers alike. In 2021, 5G will become
mature for 2-in-1 notebooks, which focus on mobility.
■ All-in-one (AIO)
The AIO has been on the market for years. It is an elegant design combination of screen and computer with a
truly special thin shape. The product has replaced the desktop in many households and corporations. Compal
has also enhanced the design for AIO with unique rotating hinge to adjust display. Because Compal has the
fundamental technical capabilities required for notebook PCs as featured in the AIOs, it can also commence
production in a very short time. Our AIO product lines have been very well received by clients.
■ 5G Module and Products
5G communication and 5G applications are global development trends. The three major usage scenarios
provided by 5G communication are mobile broadband service (eMBB), multi-machine type communication
(mMTC), ultra-high reliability and ultra-low-latency communication (URLCC).
In coming years, 5G
communication will be widely deployed in various industries and various domain applications.
Building on its long-term technical advantages in the communication field, Compal provides 5G communication
devices and networking equipment as well as offers the highly End-to-End integrated 5G networking
infrastructure solution (the so-called Non-Public Network or Private Network). The 5G universal integrated
107
module complies with 3GPP Release R15 specification, is backward compatible with 4G LTE/3G WCDMA,
supports high-speed LTE Cat20, and supports both 5G NSA and SA networking modes. Modules with multi-band
support include WCDMA/TDD-LTE/FDD-LTE, 5G FR1 (Sub-6 GHz) and 5G FR2 millimeter waves etc. Modules also
built with GPS/GNSS global positioning system, eSim and other functions, are all needed foundational
technology of coming 5G and AIoT applications and devices.
Based on the long-term experience in consumer electronics design, research and development, and product
manufacturing, Compal provides variant kinds of reference designs of 5G user equipment products, collaborates
with existing customers and partners, to provide 5G products such as 5G Mifi, 5G routers, 5G CPE, 5G notebook,
5G AR/VR, 5G drone, 5G robots, 5G Camera, 5G Industrial PC and industrial router, and 5G USB Dongle … etc.
Rooted in the technology competence of telecommunication and the collaboration competency of joint
development, Compal effectively engages with strategic partners to develop and manufacture 5G networking
equipment, such as 5G Small Cell, Edge Computing, and 5G Core Network, as well as the integrated and
optimized 5G private network and the vertical applications on top of the 5G infrastructure network.
The 5G devices, networking equipment, and 5G Private Network solutions will be widely used in various
industries such as entertainment, culture, tourism, finance, health, transportation, education, industry,
agriculture, government, and power utilities, etc.
■ Tablets
Compal has deeply cultivated in consumer tablets and e-Readers for many years. By our advanced design
technologies, outstanding mass production records, superior performance management and reliable quality
control, we have won high praise from global leading customers. Facing the slow down global tablet market in
recent years, Compal is also devoted to breakthroughs in technologies and product features, aiming to
commercial and industrial tablet market to engage more business opportunity and raise profits.
■ Smartphones
Compal targets various groups of smartphone users and general consumers, and the pioneers of technology
continue to strengthen technical design and operation efficiency to develop core communication technologies.
Since 2019, we have invested in the design of 5G smartphone models and promoted 5G models to maintain our
leadership in the industry. In 2019, we developed and shipped mid-end 5G smartphone models, and keep
development more advanced technology features, included flexible display, fingerprint recognition, AI camera
technology, hundred-million-pixel camera, narrower bezel design, and high-speed fast charging technology to
meet market demands and customer expectations.
At the same time, compal has also continued to dig deep into the design of rugged mobile phones, improved
the anti-scratch, anti-panel crack, drop resistance, and waterproof and dustproof designs for rugged outdoor
usage. The stylish appearance reverses the traditional and monotonous shape of rugged phones and can meet
the military standard requirements, also bringing a new and fashion ID look to rugged smartphones.
■ Smart Wearable Devices
108
Compal started shipping wearable devices in 2016. Based on our design engineering capabilities and
manufacturing experience with smart devices, we have made great progress in terms of the shipping quantities
for Google Wear OS-based smart watches. In addition to the development of more compact and energy efficient
smart watches, we are also devoted to expanding our wearable product lines to satisfy various requirements
from our customers.
■ Smart Hearable Devices
The trend to remove audio jacks on smartphones is one key driver to the fast-booming Smart hearable market.
Convenience of usage and affordable price also stimulate the market demand.
Based on our rich experience in wireless and acoustic technology, Compal has aggressively entered the smart
hearable market. In addition to the consumer Bluetooth headset and TWS earbuds, we also have deep
cooperation with hearing experts to develop hearable and acoustics for noise cancellation and human voice
enhancement with AI technology.
■ Smart Display Products
In recent years, the development of emerging technologies has continuously created diversified convenient
situations for people's lives, and the demand for smart displays has become more diverse. We continue to
deepen and strengthen the development of mini and micro LED backlight solutions on large-scale displays, the
introduction of artificial intelligence (AI) image processing and sound processing, smart display with intelligent
voice assistants, and integration of far-field radio microphone arrays and other technologies. Through
interactive convenience and visual and auditory immersive experience in the use of products, we satisfy
multiple usage scenarios and enhance value-added services and new business opportunities.
■ AR/VR Smart Devices
Worldwide leading technical companies have invested in the development of virtual reality (VR) and augmented
reality (AR) for many years. In recent years, with the leap forward in semiconductor process technology,
breakthroughs in optical display technology and the development of AI, AR, and VR are expected to be part of
the next-generation personal computing platform.
A Compal base in product manufacture, mobility design, and communication capabilities, applied to AR/VR
devices and cooperated deeply with Qualcomm. In the future, for vertical customers, Compal will combine
hardware, software solutions, and 5G communication into a standard 5G AR/VR solution to meet customer
needs.
■ Smart Home Devices
The Smart Home has been in development for many years, and the rise of the Internet of Things (IoT) and AI
technologies has allowed speaker hubs with smart voice assistants to become the focal point of competition in
several industries. We have already received client recognition for our development of the Smart Speaker and
109
Smart Camera by Compal design and development capability. In the future, Compal will also use its core
capabilities to expand its product coverage in many different applications and devices in the Smart Home.
■ IoT Vertical Solutions
Vertical solutions have been one of the key demands in the development of IoT with an extensive range of
applications covering smart cities, Industry 4.0, smart buildings, smart retail, and smart medical care. Such
solutions feature integrated software and hardware and are designed specifically to accommodate client needs.
Demands from B2B customers not only account for a higher portion of the existing IoT market but also bring
Compal more immediate profit. Besides, the demand for AR/VR glassess in vertical market has increased since
the technology progress of wearable device in past few years.
■ Smart Medical and Healthcare
The aging population, China’s new two-child policy, the flourishing health care industry, and the rise of sports
fashion, especially the popular and convenient smart devices, have all contributed to smart healthcare
becoming a focus of attention. It has also become a major matter of cross industry cooperation. Compal has
responded to market demand and the rapid advent of the IoT era by active engagement in the healthcare
market. The Company has reached out to major hospitals and point of care (POC) centers such as those engaged
in long-term or postpartum care, using our strengths in integration and extensive experience in product
development. The designs, which include science, technology, and humanity, help caregivers to provide higher
quality services and also give hope of a better quality of life and personal dignity to those who need healthcare.
■ Auto electronics (AE)
The Company’s Auto Electronics Parts (AEP) Business Unit is currently engaged in providing the products
including Telematics, in-Vehicle-Infotainment and Advanced Driver Assistance Systems (ADAS), and deals with
the customers which are primarily international Tier-1 car suppliers and leading car manufacturers.
■ Servers
The Cloud application market is growing, and a significant portion of data storage and computing analytics have
shifted to cloud servers in the back end. To meet the demand from both Enterprises and Data Centers, Compal
has mastered the R&D of high-density computing power and precision performance management and has
developed the capacity to design and manufacture servers with high cost-performance value.
110
5.1.2
Industry Overview
1. Current and future industry prospects
■ Notebooks
Due to the pandemic, many people have made the abrupt shift to working from home and learning from home.
The pandemic not only fueled the PC market demand but also created opportunities that resulted in a market
expansion. According to IDC, notebook shipments amounted to 219.9 million units worldwide in 2020, up 29%
from 2019. In 2021, COVID will drive another wave of PC penetration, with ownership in mature markets likely
to rise from one PC per family to one PC per person. The momentum in PC market will trigger strong consumer
and commercial demand. Also, from a market perspective, demand is pushing the PC market forward. As the
PC industry matures, brand manufacturers are shifting focus towards higher priced and more featured products,
such as Ultra slim Notebooks, 2-in-1s, gaming notebooks and creator PCs in search of more market
opportunities, revenue and profit. This transformation requires more precise market segmentation, product
positioning and innovative design. Compal, with its extensive industrial experience, fine craftsmanship and
proprietary patents, can coordinate with suppliers and customers in creating market demand by developing
innovative products that progress with time.
■ Ultraslim Notebooks
Slimness and lightweight continue to be two dominant design trends in today’s PC market. As solid-state drives
(SSD) become popular, Ultraslim Notebooks no longer present a luxury that only high-end consumers can afford
but are gradually becoming accessible to mainstream consumers as more affordable models become available.
According to IDC, the shipment of ultra slim notebooks (<18mm thick) in 2020 was close to 63 million units
worldwide, representing an annual growth rate of 52%. Ultraslim notebooks may account for 31% of the total
notebook shipment worldwide by 2021. However, Compal will continue exploring new lightweight materials,
power-saving solutions, and cooling technologies to help our clients provide the most competitive products and
earn market recognition.
■ 2-in-1 Notebooks
Owing to efforts across the entire supply chain, the cost and selling prices of 2-in-1s have dropped considerably,
which has made them more available and acceptable by a wider group of consumers. There are two types of 2-
in-1: flip-screen and detachable. Flip-screen notebooks can be physically converted for use under different
scenarios, such as video sharing, multi-user sharing and tablet mode. In recent years, manufacturers have
introduced notebooks with flip screens that are both lightweight and thin, making them even more appealing.
Detachable notebooks are characterized by smaller screen size. This is a feature that appeals to both tablet and
notebook users. The compact form factor combined with a detachable keyboard can better satisfy users who
have higher need for portability. According to IDC, the shipment of 2-in-1 devices totaled about 91.41 million
units worldwide in 2020. The manufacturers will introduce diversify products with 5G and AI in 2021. This has
111
the potential to increase shipment by nearly 6% to more than 97.29 million units.
■ All-in-one (AIO)
The AIO market is currently dominated by HP, Lenovo, Dell and Apple. Those top brands account for more than
83% of market share today. The AIO market is currently divided between two extremes. One end of the
spectrum is characterized by the use of entry-level CPUs such as Intel Celeron and Pentium. Their main purpose
being to replace desktop PCs as learning machines for children. On the other end of the spectrum lie mid-range
and high-priced products. Their main advertised features include multimedia playback, a high-end desktop or
notebook CPU, an advanced video processor, and a large touch screen panel. These high-end specifications
combined with aesthetic design have revolutionized the PC market and these products are starting to replace
desktops. According to IDC, the three-year decline of AIOs has ended and shipments should remain stable with
11.4 million units in 2021.
■ 5G Module and Products
According to the GSA, by March 2021, there are 176 operators officially providing 5G network communication
products and services in more than 76 countries worldwide. Cisco Annual Internet Report states that by 2023,
about 70% of the world's population (5.7 billion) will have mobile network communication, at least 10% of
which is provided by 5G communication. There are more than 628 5G consumer products available in the global
market. Include 21 product categories such as mobile phones, tablet, network sharing devices (CPE/MiFi),
router, dongle, notebook, TVs, robots, vending machine etc. Many products have adopted Compal 5G solutions
already. Compal will continue to expand its partnerships in different 5G domains to develop more 5G application
services and consumer products.
■ Tablets
Impacted by the COVID-19 pandemic, demands for work, entertainment and education at home have sharply
increased, which has driven the tablet demands to hit a high in recent years. According to IDC report, global
tablet market shipped 164 million units in 2020, 13.6% YoY growth comparing to 2019. The pandemic pushes
people to communicate through Internet, and tablets are more cost-effective than personal computers, which
also drives this growth. In some mature markets, there are high discount promotion by tablet channels, some
operators also offer 60-day free internet package to attract more sales. Compal also continues to pay attention
to these market trends and respond to these changes to provide consumers with competitive and diverse types
of tablet products.
■ Smartphones
According to IDC, the global smartphone sales volume in 2020 was about 1,280 million units, with a YoY decline
of 6.7%. The overall decline in sales is due to COVID-19 pandemic in World Wide smartphone market. We
observe that 5G smartphone keep the huge growth power for the upcoming 5G network deployment and the
112
launch of 5G services into the market. Compal aggressively invests in the development of new technologies for
5G smartphones, and provides built-in AI (artificial intelligence) enhancement, virtual personal voice assistants,
and a more intuitive user interface. In addition, it will also bring a more attractive new generation of
smartphone products.
■ Smart Wearable Devices
According to IDC, smartwatch shipment increased steadily by 15% YoY in 2020. This dynamic growth is being
led by strong sales of Apple watches. Providing technology support and manufacturing services timely, Compal
released an original designed LTE smartwatch in 2020. To build our core value for customers, Compal not only
consults our upstream partners, but also provides diversified designs and solutions to meet various needs of
the end users.
■ Smart Hearable Devices
According to market research data, the growth of TWS earbuds in year 2020 remains strong and the shipment
surpassed 190 million units, a 73% YoY growth comparing to the shipment in 2019. Apple Airpods series still
dominated and accounted for around 50% of the market share. However, there are more users choosing to buy
TWS earbuds with lower price under USD 100 dollars from brands like JLab.
In addition to music streaming and smart assistants, TWS earbuds also have new features like hearing
protection. According to the World Health Organization (WHO), about 460 million people worldwide have
hearing loss problems, and about 1 billion people run the risk of hearing loss due to loudspeakers and long-
term listening to entertainment headphones. Compal develops smart hearable products and co-works with
professional research centers to bring customers greater listening experience, efficient wireless communication
technology, as well as smarter hearing assist features and user interaction experience.
■ Smart Display Products
According to statistics from Omdia Market, due to the impact of COVID-19 the overall annual growth rate of
global LCD TV industry shipments in 2020 was only 0.4%, and the total number of global shipments was about
223 million units, of which the ratio of 50 inch and above was over 20% together with the proportion of Smart
TVs in North America also exceeded 97% in the third quarter. Looking forward to 2021, for the post-COVID-19
period, we will actively develop smart TV and smart video-related products with ultra-high picture quality,
immersive audio quality and built-in voice assistants, and continue to cultivate strategic partnerships to
maintain a good business and keep flexibility to respond to market dynamics.
■ AR/VR Smart Devices
In response to the use of new forms of media and information technology, humans can accelerate the efficiency
of processing, solving problems in work, life, and entertainment. Through VR experience, learning, training, and
AR (augmenting reality) to solve problems in a timely manner. Therefore, AR/VR applications have gradually
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become the main force for the development of technology giants in various fields, especially Microsoft,
Facebook, and Google. The application of AR/VR head-mounted display devices has achieved breakthrough
development in vertical markets such as smart factories, smart healthcare, and remote collaboration. Personal
gaming and 3D holographic streaming media have also been produced in entertainment. In the future, AR/VR
will further deepen computer vision, AI (artificial intelligence), and IoT applications, and become the new
personal computing platform. In addition, COVID-19 continues to impact the flexibility of the Company’s work
environment and promote the entire process of transformation. IDC predicts that by 2023, 70% of service-
oriented companies in the world will use AR/VR as personal assistants. The application of the acceptance and
transfer of work knowledge; therefore, AR/VR enterprise application solutions will become the main market
direction.
■ Smart Home Devices
Mobile devices have become an inseparable part of daily life. As wireless technology matures, an “Always
Connected” environment is starting to take shape to cater for our work, living, and leisure needs. Smart Home
applications have become a mainstream development topic for technology giants such as Amazon and Google.
Smart voice assistants and AI embedded smart devices have been a breakthrough for progress in Smart Home
applications. More and more players are joining this market. In the future, there will be more applications based
on voice interaction, image recognition and interaction, as well as security. The implementation of AI technology
will provide users with a more convenient and intuitive experience.
■ IoT Vertical Solutions
Industries have maintained high interest in IoT over the last few years. We hope to resolve the inherent
problems in collaboration with ICT businesses. In this sector, we have engaged in cross-sector alliances with
leaders of other industries to develop automated guided vehicles (AGVs) to enhance plant production efficiency
or smart cold-chain transportation to resolve the long-time pain point of businesses. Furthermore, Augmented
Reality (AR) glasses/Virtual Reality (VR) glasses demand is not limited to consumer applications, the market is
also towards enterprise applications. To Compal Electronics, this is a favorable opportunity to enter the IoT
market.
■ Smart Medical and Healthcare
Increasing shortages of medical staff over recent years has imposed a heavy burden on medical personnel. The
result is that medical institutions are desperately searching for more efficient ways to manage personnel and
resources. In the United States, hospitals have responded to this crisis with the full implementation of digital
charts and modern hospital management systems. Compal is actively introducing promising solutions from
abroad to help Taiwanese medical institutions provide better service for patients.
Furthermore, the aging population and shifting focus of medical technology towards convenience have resulted
in a change in healthcare practices from always being hospital-based to some home-based and personalized
solutions. In light of this, Compal has invested significant resources in the development of integrated products
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that make it possible for many healthcare services to be carried out at home or at other fixed locations.
Compal also develops smart sports solutions and smart assistive tools, and is collaborating with athlete training
centers, both at home and abroad, in the development of exclusive high-end products for professional athletes.
■ Auto electronics (AE)
In recent years, governments all over the world have been tightening the exhaust emissions standard and safety
standards of vehicles and have set a timeframe for implementation. Electrification, connectivity, and ADAS/AD
become the megatrend which trigger disruptive changes in the automotive industry.
IT companies (e.g. Google), startups (e.g. AI and sensor startups), and service platforms (e.g. Uber) enter the
market one by one, even legacy automakers restructure themselves and adapt purchase sourcing models to
cope with the changes. In response to that, in 2017, we made ourselves ISO 26262 certified, which the first
automotive electronics manufacturer in Taiwan granted and devote to ADAS related product development and
market exploration.
■ Servers
Server shipments have grown at about 2.8% per year mainly due to increased demand for cloud services.
According to IDC, shipment of x86 servers totaled 15.99 million units in 2020. This is expected to rise to nearly
16.92 million units in 2021. X86 servers accounted for 95% of total server shipments. Rack-mounted servers
represent a higher market share because they are both energy efficient and scalable.
2. Association between upstream, midstream, and downstream industry participants
■ Notebooks
The notebook industry is now mature and Taiwanese manufacturers have developed comprehensive
partnerships with upstream, mid-stream, and downstream suppliers. This fully-fledged supply system gives
manufacturers the advantage of being able to quickly and flexibly adjust to market changes. It also enables
Compal to keep up to date with the latest technology and pricing of key components such as CPUs, chipsets,
LCD panels, hard disk drives (HDD), and solid-state drives (SSD). However, we still suffer Geopolitical issues and
regional conflicts, as it has caused difficulty in global production and logistics since 2018. Compal and other
Taiwanese ODMs/OEMs possess distinctive know-how on system integration, from design to manufacturing, as
well as operational management. Taiwan now accounts for more than 80% of the world's notebook ODM/OEM
production. The downstream customers including brand manufacturers such as Dell, Lenovo, HP, Acer, Asus,
and Apple all have strong marketing strategies and comprehensive sales support systems to ensure success.
.
■ Ultraslim Notebooks
As an Ultra slim Notebook supplier, access to metal for casings and lightweight carbon fiber materials is
especially important. Compal has developed a robust upstream, mid-stream, and downstream supply system,
and acquired the equipment and technology to produce the needed metal products. Compal will now shift
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focus gradually towards products in the mainstream price range, such as Ultra slim Notebooks made with plastic
materials. This will ensure quick launch of new customer products and growth in this market.
■ 2-in-1 Notebooks
The supply chain and manufacturers of 2-in-1s are generally identical to those of convention notebooks, with
the addition of some tablet parts suppliers and manufacturers. Support of the existing supply system and its
advantage of integration across suppliers, allows Compal to maintain full control of the development of key
components. This speeds up research and innovation of new features because brand manufacturers and users
of 2-in-1s continue to add new requirements. Despite the increasing complexity and challenges ahead, Compal
remains confident and continues to make improvements as well as continuing to bring new products and
concepts to the market.
■ All-in-one (AIO)
The supply chain and manufacturers of AIOs are generally identical to those of conventional notebooks. The
upstream supply structure is similar to that for general PCs, with the addition of suppliers of large touch screen
panels. HP, Lenovo, and Dell focus not only on commercial users but also home multimedia users. Apple’s
emphasis is on professional applications and usage.
■ 5G Module and Products
Compal 5G module and the reference device design has combined upstream and downstream and dozens of
well-known customers and operators to establish a complete 5G product ecosystem, providing flexible and
diversified 5G related products to fulfill various 5G domain services and requirements.
■ Tablets
In addition to existing supply chain and industry advantages, Compal also actively explores more competitive
suppliers and manufacturing sites outside of China to provide production options and ensure that the price and
quality could meet both customer and market expectations.
■ Smartphones
Compal actively explores competitive suppliers to ensure the quality of sourced material meets both customer
and market needs. Furthermore, Compal is building up a 5G related component supplier chain, as well as new
technology, to assist customers in remaining competitive.
■ Smart Wearable Devices
Compal works closely with suppliers for chipsets, sensors, wearable displays, and touchscreen modules to
secure parts for wearable devices. In addition to coordinating with upstream suppliers and developing new
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technologies for new customers, Compal also reaches out to suppliers with advanced technologies. Thanks to
the technical collaboration between Compal and its technology partners, Compal can quickly adjust the supply
chain and product development strategies to accommodate the fast-changing market.
■ Smart Hearable Devices
Compal has plenty of resources for smart hearable platforms and related components based on our past
development experiences in smart devices. We have built strict standards for acoustic, reliability, and regulation
tests so that we can guarantee to our customers that Compal can deliver reliable and high-quality products.
■ Smart Display Products
Affected by the uncertainties of both COVID-19 pandemic and the China-US tariff dispute, the supply chain
began to develop outside China to diversify risks. We continue to integrate resources across regions from
upstream to downstream, deploy production base resources, control and manage operating costs, and provide
flexible order fulfillment to meet customer’s demands.
■ AR/VR Smart Devices
For AR/VR application, Compal provides a complete set of software and hardware solutions, combined with 5G
communication to provide high-performance application solutions. Compal has also built up a strong
partnership with Qualcomm to provide the standard device reference design, creating a highly cost-effective
solution for customers, which can further seize consumer market applications and take leadership in future
personal computing platforms.
■ Smart Home Devices
Compal provides diversified terminal devices such as smart speakers and smart cameras for this application
segment. Compal also coordinates across upstream, mid-stream, and downstream partners, to provide all kinds
of customized hardware devices, software support, and platform solutions on demand. This allows different
system integration providers and our many industrial customers to fulfill all kinds of Smart Home applications.
■ IoT Vertical Solution
As product positioning and requirements vary in different regions, countries, customers, and applications,
fulfilling the specific specifications and stringent environmental requirements in product design is the main
difference between vertical specific industry and ordinary consumer computers. In addition, we have begun to
develop integrated system services and products, such as AGV, in collaboration with suppliers with respect to
the customer’s application requirements.
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■ Smart Medical and Healthcare
(1) Management system:
• Digital charts and smart ward solutions
Compal has been introducing digital charts through an alliance with some foreign partners. Unlike the
conventional management system adopted by existing medical institutions, this product offers the
potential to provide both diagnostic aid to physicians and also reduces the workload on nurses. It can also
be integrated with many different data management systems currently used in hospitals. Digital
transformation is already happening within the healthcare system. Compal is currently working with
several hospitals to develop digital charts and smart ward solutions. Healthcare organizations will no
longer have to operate in isolation but will be able to coordinate their activities with each other towards
the establishment of a uniform standard to reduce the wastage of medical resources.
• Point-of-care solutions
Compal aims to address the recent increase in demand, as well as the shortage of manpower, at nursing
and postpartum centers. This is being done by the introduction of human-operated healthcare solutions,
such as proprietary bedside systems that are compatible with the instruments and specifications of other
manufacturers. However, flexibility and the ability to customize products to customer needs will still be
maintained. The most important feature of this product is that it works with different types of Smart Home
devices and medical instruments, and also supports multiple services. It is intended to provide at home
comfort in nursing and postpartum centers, while also allowing professional care facilities to be set up at
home.
(2) Instruments, equipment, and accessories:
• Smart sports
Compal has invested substantial resources into the development and integration of smart sports vital sign
monitors. These can gather measurable data and are also useful for professional course design. Compal
solutions can be further combined with the services of professional fitness training centers to provide
users and trainers with physiological information in real-time. This information can be exchanged over the
cloud to facilitate remote training and communication between athletes and trainers. This helps athletes
undertake the most effective physical and technical training methods and helps to avoid sports injuries.
• Smart assistance devices and healthcare-related products
Compal is actively investing in the digital transformation of medical equipment. Through Internet
connectivity, data from medical equipment can be exchanged and calculations can be made in real-time
over the cloud. This can make various user services available, such as auto record-keeping, reminders,
behavior prediction, and so on. These devices can even be connected to advance and back-end medical
service providers for professional medical consultation, to accomplish the Compal vision of a mobile and
real-time medical service.
•
Innovative medical devices
Compal has been working with partners in both the industry and the medical segment for several years
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and has invested in the development of some rather innovative medical devices. These include: CGM
(Continuous Glucose Monitoring), 24-hour BPM (24-hour blood pressure monitoring), handheld smart
ultrasound, i-AED, and others. We expect to provide users and physicians with many more options to help
develop a smart medical industry and improve the quality of healthcare.
(3) Medical AI
• Cardiovascular disease prediction
To reduce the problem of a lack of medical manpower, Compal has been working with the Chi-Mei Hospital
and medical center on the development of AI in medicine. Using the existing abundant medical resources
of the hospital, Compal is helping to build up a cardiovascular disease prediction AI system which can be
used in hospitals and medical centers. The product will include long-term tracking and users may be able
to predict the timing and probability of cardiovascular complication. This will allow preventative action to
be taken and reduce the risk of such events as stroke, myocardial infarction, etc. Compal also expects to
help with the medical technology upgrade after the integration of the products in professional medical
establishments in Taiwan.
■ Auto electronics (AE)
The mid-stream players in the supply of auto electronics are represented by tier 1 AE integrated system
providers. This integrated system handles in-car information, communications and entertainment, and is also
linked to other auto parts. These products are sold to downstream automobile makers, which places the
Company between the midstream and upstream of the AE supply chain.
■ Servers
Server technology is a highly mature industry and one in which Taiwanese manufacturers have developed a
comprehensive supply system of upstream, mid-stream, and downstream partners. Main parts such as CPUs,
memory, and storage drives are easily secured and downstream customers such as HPE, DELL, and Lenovo all
have long-term notebook manufacturing relationships with Compal. Compal has now developed extensive
experience and has a reputation for the design and manufacturing of server products.
3. Product trends and competition
■ Notebooks
• The Notebook has matured to a point where brand manufacturers are shifting focus towards higher priced
and more fully featured products, such as ultra slim notebooks, 2-in-1s, and gaming notebooks in a search
for greater market opportunities, revenue, and profit.
• More user scenarios for notebooks, for example, gaming notebooks for eSports and creator PCs for
content creation.
• The Intel 10th generation CPUs were the mainstream processors used in 2020.
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• AMD started to gain CPU market share in 2018 2H because of Intel’s CPU shortage issue. In 2020, Apple
released the first MACs with M1 Chip. In addition, remote learning led to education laptop demand. PC
running on ARM-based processors may increase in the market.
• The increasing popularity of mobile devices and online applications have called for more robust and
diverse security functions, from fingerprints, to facial and voice recognition. These are all intended to
enhance information flow and convenience without compromising security.
■ Ultraslim Notebooks
• Lightweight, high screen-to-body ratio and high-quality design will become the main decision factors for
consumers.
• The new CPUs will provide consumers with adequate power for multi-tasking and the handling of day-to-
day computing tasks.
• Long-lasting batteries will free users from the need for frequent recharging when traveling.
• Metallic casing material allows thinner, lighter, and higher-value products.
■ 2-in-1 Notebooks
• Consumers nowadays expect more from 2-in-1s than light weight and portability. Multi-tasking
processors, long-lasting batteries and the capacitive stylus have become the new mainstream features.
• 5G will bring more modern usage for 2-in-1 notebooks.
■ All-in-one (AIO)
• High-end home entertainment AIOs and new flat, portable AIOs present new opportunities.
• There is room for improvement in touch-based applications and graphical user interfaces.
• The product exterior can be designed to match interior decoration and furniture.
• Portable products can be designed with screens that can move in several directions.
The AIO target market is no longer confined to first-time PC users, or as replacement for conventional office
desktops. More advanced components are becoming available and these devices will benefit from broadened
applications to achieve higher market acceptance.
■ 5G Modules and Products
5G communication and applications have expected explosive growth in the coming years. 5G terminal and
consumer products will come out with different product categories such as network devices (CPE/Mifi),
notebook computers, routers, televisions, and robots… etc.
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5G requirements come from various industries. Compal provides leading communication technology, product
manufacturing and technical know-how. Our integrated 5G module solutions come with complete technical
support and development tools to help our customers develop their 5G products and services.
■ Tablets
• Extend R&D technology to 5G communications.
• Focus on more cost-performance competitive and better quality design.
• Explore collaborative opportunities with content providers or telecommunications operators.
• Explore opportunities in education, for kids, industrial, and medical applications.
• Develop tablets for the Smart Home and IoT and use them as control centers or as multi-functional
platforms.
Tablet is a mature product, and what manufacturers should focus on for the next step is the exploration of new
use cases and more convenient user operation and support for more diversified applications. Education, kids,
e-commerce, Smart Home hub, and IoT applications are all potential directions that Compal is actively
exploring.
■ Smartphones
The communication technology enters into the 5G communications generation. In addition to mobile
broadband service (eMBB), multi-machine type communication (mMTC), ultra-high reliability and ultra-low-
latency communication (URLCC), these features will increase consumer demand for entertainment, application,
and services.
•
Integrates multi-core architecture and strengthens 4G and 5G carrier aggregation mobile broadband
communication to provide faster transmission speed and data throughput.
• Support AI image processing and applications, drive video streaming services to meet the needs of
consumers in daily work and life entertainment.
• Higher screen ratios, high picture quality, narrower border touch products.
•
Integrating under-screen fingerprint recognition technology and under-screen camera technology to
create full screen experience for consumers.
• Continuously improve the functions required for rugged mobile phones, scratch-resistant, crack-resistant,
drop-resistant, waterproof, dustproof, etc.
■ Smart Wearable Devices
• More and more smart, fashionable, and compact watches for sports and health are following Apple to the
market.
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• Customers who use smart wearable devices for sports also want high-accuracy GPS, steps count, heart
rate monitoring, and other bio-measurements. However, power efficiency remains a key requirement
common to all users.
• Customers who use smart wearable devices for health reasons need accurate algorithms and convenient
user operation. This will be one of the key success factors of the products.
To satisfy customer needs, Compal not only continues to make more power-efficient and compact designs, but
also enhances the flexibility of its production processes.
■ Smart Hearable Devices
Evolving due to keen competition, smart hearable devices will not only be used for music streaming, but also
include more advanced features such as active noise cancellation, smart assistant, bio-detection, etc. Besides
the functionality enhancements, the design will also aim to improve user experiences like water resistance,
ergonomics for comfortable wearing, and applications with AI technologies to make it smarter.
Compal has been professional in both hardware and software development for a long time. We have also co-
worked with hearing experts for more professional acoustic products development to create product
differentiation and make us more competitive in the market.
■ Smart Display Products
We team up with strategic partners to develop high-end models, integrating far-field microphones, ultra-high-
resolution large size display solutions, Mini and Micro LED backlight solutions, and introducing technologies
such as artificial intelligence image processing and artificial intelligence sound processing, continue to
accumulate the latest technology and experience, make use of the essence of innovation, and integrate
research and development resources across fields, combining applications in mobile phones, wearables and
home networking products to improve user experience and satisfy multiple usage scenarios, stay on top of the
industry's technology, and maintain long-term competitiveness.
■ AR/VR Smart Devices
• AR head-mounted displays and spatial sensing modules have been adopted by vertical application
customers and entered the European and American markets.
• AR/VR new Platform (XR Platform) completed the development stage.
■ Smart Home Devices
• The voice input and interaction provided, and AI enhanced applications of the smart speaker and smart
camera are trends of the future Smart Home devices. Compal will create more intuitive and convenient
Smart Home products.
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• Software services are integrated with cloud computing, and data analysis and user behavior learning will
be the key competitiveness of Smart Home products.
■ IoT Vertical Solution
Given the high entry barriers, not may investors have engaged in the vertical specific industry over time. The
rise of IoT has also attracted increasing competitors. As an ICT leader, therefore, we will implement some new
technologies, such as AI and the design capacity of energy-efficient devices, to increase our competitive
strengths.
■ Smart Medical and Healthcare
(1) Management system:
‧ Digital charts and smart ward solutions
The United States currently has the most popular (Level 7) digital chart and hospital management system,
and other countries around the world are following closely behind. The purpose of this product is to
deliver functions that will be of assistance to physicians and nurses while still being easy to operate.
Alliances with world industry leaders has made it possible for Compal to introduce the solution to
medicine in Taiwan, where its success will be replicated in our medical systems and it will also be moved
to other countries in Asia.
‧ Point-of-care solutions
An aged society, combined with a need for differentiated medical services, make nursing centers and
postpartum care centers especially popular in Taiwan. This management system provides them with a
comprehensive solution and makes it possible for communications to be established between several
different medical devices while patient privacy remains protected. Compal has invested in the
development of related hardware and software and is working with existing medical instrument suppliers
on the growth in this market.
(2) Instruments, equipment, and accessories:
‧ Smart sports
There is already a strong and growing demand from professional athletes for assistive technologies and
devices. Compal has invested significant R&D efforts in collaboration with top world sports experts for the
development of products that are more suitable for professional athletes. Compal is also working with
fitness centers on the creation of customized, exclusive packages that deliver the most effective sports
solutions and communications to users and businesses.
‧ Medical equipment and healthcare-related products
Medical equipment with Internet connectivity is a trend of the future. Devices that have functionalities
that allow access to information from a health management platform will be easier to operate and is also
more competitive in the market. Compal will continue investing in the development of medical
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instruments and equipment with such connectivity and will bring better quality services to customers with
the help of a management platform and cloud service.
‧
Innovative medical devices
As the new biosensors and related hardware such as MCU/firmware/biomaterials and software have
matured over recent years, development of the innovative medical devices industry has also moved to
another stage. Continuous investment and development by Compal have led to more and more customers
gaining trust in our design and development capacity, and the market trend is now moving towards an
alternative device generation.
■ Auto electronics (AE)
Telematics, in-vehicle-infotainment, and Advanced Driver Assistance Systems (ADAS).
■ Servers
The rack-mounted server is still the mainstream product today because it can be easily maintained and scaled
up as business grows. Tower servers are still favored among SMEs for their low cost, but their market share has
been steadily declining. Blade servers are relatively expensive to set up and may gradually be replaced by more
simplified High Density servers.
• The number of servers required for Data Centers has increased continuously year after year. Although the
demand for conventional enterprise-grade servers has gone down a little, demand for both types of
servers will ultimately reach equilibrium.
•
In addition to cost-performance, design flexibility and quick response to customer needs are the two most
decisive factors for a product’s success.
5.1.3 Research and Development
1. Research and Development Expenses over the past year
Year
R&D expenses
Operating revenue
Unit: TWD Thousands; %
R&D expenses as a percentage of
operating revenue
2020
2021 first quarter
15,162,995
3,759,510
1,048,929,251
269,991,533
1.5
1.4
2. New products developed
■ Notebooks
• High-end products: These are high-performance professional models combined with an ultra-high
definition display (4K), high refresh rate (144Hz) and a powerful GPU that targets users who seek
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ultimate performance such as gamers or creators.
• Mainstream products: 15.6-inch and 14-inch products thin, low voltage, slim bezel and 16:10 aspect
ratio design that are powered by the latest CPU from Intel or AMD, are distinguished by integrated or
discrete GPU models.
• Business products: Business notebooks designed specifically for corporate users. These products feature
enhanced structural design and security, and are offered to large corporations, SME, and the education
sector. Security mechanisms such as fingerprint, facial or voice recognition are incorporated to satisfy
the user’s need for security and data confidentiality.
• Special products: Compal has directed resources into developing notebooks of extreme slimness and
will lead the industry in technological innovation in this area. Dual screen and foldable notebooks will
be a hot new topic.
■ Ultraslim Notebooks
• Compal has successfully mass-produced and launched many Ultra slim Notebooks, and its designs have
been recognized by several international awards.
• Performance will not be sacrificed.
• Not only thinner and lighter but also low power consumption are key requirements for good user
experience.
• New ultra slim notebook will feature thin frame displays for a more fashionable and cleaner appearance;
the display quality will also be improved.
■ 2-in-1 Notebooks
• Compal has successfully designed, mass-produced devices and launched a new 2-in-1.
• An innovative hinge design is being developed to provide a more secure and precise connection while
allowing easier detachment, this allows better user convenience when 2-in-1s are used in different
scenarios.
■ All-in-one (AIO)
• Compal has successfully designed, mass-produced, and launched AIOs for mainstream users.
• Compal has successfully designed, mass-produced, and launched a new flat type of AIO.
• Compal has developed, mass-produced, and launched AIOs that are targeted at e-sports.
• Compal plans to acquire touch control technologies with pen support and introduce AIOs in sizes ranging
from 19" to 27."
• Compal has successfully designed AIOs with a wireless charging dock.
■ 5G Module and Products
• MTK based 5G M.2/LGA module will be mass-produced in 2021.
• Qualcomm based 5G M.2/LGA module obtained product certification, including GCF, CE, CCC, TELEC,
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FCC, and PTCRB…etc. and mass-produced in 2020.
• 5G products obtain interoperability test and certification from major worldwide 5G operators
• 5G indoor/outdoor CPE, and MiFi will be in development and MP in 2020. To extend 5G module to
various types of devices.
■ Tablets
• Developed and manufactured WiFi tablets of high cost-performance ratio for entertainment.
• New tablets with in-cell display and wireless charging function.
• Developed and mass-produced a new generation of waterproof e-Readers.
■ Smartphones
• Compal has successfully developed and mass-produced 5G smartphones with NR FR1 Sub 6 and FR2
mmWave bands
• Mass-produced various smartphones equipped with 21:9 aspect ratio FHD + large full-screen
smartphones.
• Mass-produced the world's first thinnest rugged mobile phone, with a stylish appearance, and military-
grade requirements, bringing a new look to rugged smartphones.
■ Smart Wearable Devices
• More than 50 models launched in 2020.
• Compal supports a variety of product types, such as luxurious material and design, wireless charging,
offline map, high-accuracy GPS, and high-level water resistant for sports watches. Customized product
design and more power efficient to support 3C and fashion brand requests. A new generation of
lighter, smaller, narrow border, multi-purpose smart watches with diversified designs has been
introduced.
• Mass-produced eSIM enabled LTE smartwatch.
■ Smart Hearable Devices
• Bluetooth headsets with smart assistant have been developed and are in mass production.
•
Long-term investing in high-end AI technology to develop Bluetooth headset with more intelligent
noise cancellation features.
■ Smart Display Products
•
Integrated Far-Field Microphone array into the size over 43” and above smart TV to support hands-free
voice interactive feature.
• Developing a Mini-LED backlight solution.
■ AR/VR Smart Devices
•
In the industrial market, Compal has developed VR/AR all-in-one and spatial sensing integrated optical
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modules, which have been adopted by customers to integrate in enterprise-specific systems.
• Deeply cooperating with Qualcomm to develop the next-generation 5G+AR/VR device reference
design, Compal will be the leader in 5G+AR/VR device and ecosystem.
■ Smart Home Devices
• Compal has successfully launched several smart display and smart speaker products for the Worldwide
Smart Home market.
• Compal has successfully developed several smart camera devices that will be launched soon.
■ IoT Vertical Solution
• The development of AR Glasses product was completed, and shipping to foreign customers has begun.
• Mass production of the shield-type and uplift-type AVGs has begun. Apart from implementing all
Compal plants, we have started cooperation with system integrators to promote products to the
industry.
■ Smart Medical and Healthcare
• Digital charts and a smart ward solution
• Compal is promoting business opportunities in this respect. Several hospitals have begun adopting and
exploring our smart ward solution this year.
• Point-of-care solutions
• More than 10 point-of-care centers in Taiwan have begun trials and official use of this solution. In
addition to this, several prominent nursing centers in China have also shown interest and commenced
collaborating in the use of this solution.
• Smart sports
• Smart sports solutions have been introduced at several places in Taiwan and promotion in the Taiwan
and China market is ongoing. A case has also been built up in Kaohsiung.
•
Innovative medical devices
• Many innovative medical device cases have been executed and plans for the achievement of
FDA/NMPA/CE certification have been established. Launch is expected by the end of 2019 and 2020.
■ Auto Electronics (AE)
• Compal has mass-produced various systems and modularized several products that it has designed and
developed.
■ Servers
• General Purpose Rack-mounted Servers
According to the Intel product roadmap, the launch of 1U and 2U general purpose rack-mounted
servers is undemanding and the factory can quickly fulfill customer requirements by a simple BOM
Option change.
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• Edge Computing Servers
The system has been designed for 5G telecommunication facilities in collaboration with China telecom
service providers. This system provides tremendous and responsive acceleration for all aspects of edge
computing.
• High Capacity Storage Servers
The 4U server includes 36 3.5inch hard drives and dual Intel Xeon processors, to provide cloud service
providers with massive computing performance and huge capacity to fulfill any user scenario.
5.1.4 Long-term and Short-term Development
1. Short-term Development
• We will adapt to market changes, respond epidemic situation, strengthen new design concepts, maintain the
focus on product difference to meet market needs.
• We will enhance operational efficiency, to further increase our product competitiveness and push the sales
growth rate higher than the market average.
• We will improve logistics management and flexibility to shorten delivery time.
• We will consolidate material supply to fulfill OEMs’ demands.
• We will elaborate different market strategies for different product markets. Mainstream products will be
bundled with new technology and modular features to boost the added value and diversity of products. For
featured products, we will adopt a prospective standpoint in our design concept for new products to become
the focal point of the product market. User functionality should be taken into consideration as well as
competitive pricing for lower priced products.
• Diversified production sites to mitigate geopolitical risk and strengthen cost competitiveness.
• We will pay closer attention to market trends and evolution in smart devices and develop product concepts
suitable for OEM customers and the market. We will help customers create differentiated products of feasible
design.
• Product development times will be further shortened to optimize supply chain management, maintain
persistent high quality, and provide customers with more competitive products.
• More effort will be made to maintain existing customer relations. Apart from maintaining a high degree of
customer satisfaction, we will work towards increasing the volume of product cooperation. We will also seek
other opportunities for cooperation with new customers to achieve a growth rate that is better than the market
average for smart device products.
• We will improve product profitability to achieve the maximum utilization of capacity and enhance overall
operational efficiency and profitability.
• We will tap our accumulated communications industry R&D energy resources to quickly and efficiently cut into
the high growth 5G networking market.
• Several cross-industry alliance strategies will be used for the rapid development of a diversified product line
that will strengthen customer relationships in the shortest possible time.
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2. Long-term Development
• A spirit of innovation will strengthen value-added Company products and improve long-term core
competitiveness.
• Cooperation with our customers will be improved to allow better product planning, development and
manufacture as well as comprehensive after-sales service.
• Horizontal and vertical integration of all parts and products of the Group’s affiliates will be strengthened
strategically and aligned with customer needs, to give them more convenient and complete services.
• Optimization of the quality of sophisticated products will be enhanced by new development and cost structures
and strategic alliances with main parts providers to give customers better and more competitive products and
services.
• Closer horizontal and vertical cooperation will be made with affiliates in the Group to create and strengthen the
loyalty of long-term customers.
• Our ability to innovate will be further cultivated, aimed at more accurate prediction of market trends, before
the clients do, and provide them with products and services and high value-added solutions to improve long-
term core competitiveness.
• The Company has established a service-oriented business model and new revenue sources through careful long-
term upstream and downstream integration and cooperation.
• We are strengthening the breadth of learning of our team in preparation for future new business and product
development through cross-industry alliances.
• We are cultivating the ability to control key technology, strategize high-end product lines, and gain cooperation
opportunities with big manufacturers around the world.
• We will continue to strengthen our core R&D technology and communication capability and capacity for
integrated services for smart devices.
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5.2 Market and Sales Overview
5.2.1 Market Analysis
1. 2020 Sales (Service) by Regions
Area
Americas
Europe
Asia (Including Taiwan)
Other Area
Total
2. Market Share
■ Notebooks
Percentage
47.4%
24.8%
25.1%
2.7%
100.0%
According to IDC statistics, the total number of notebook PCs sold around the world in 2020 came to approximately
219.9 million units. In terms of total shipping quantity, Compal’s notebook PCs have approximately 25% of the
global market share and the Company remains a world leading manufacturer of this product. As the market for
notebook PCs is entering the era of vertical integration, Compal will continue to improve upon its technological
capabilities, broaden the scope of its influence, and expand the market scale while challenging the limits and
striving for continual improvement to maintain our lead over the competition.
■ Smartphones and 5G Products
The 5G Smartphone market has become mainstream. Compal will continue to ship smartphone products with
customers and regional carriers. Expand investment in 5G smartphone technology, provide customized solutions,
product reference designs, and flexible ODM/JDM/EMS and services. Compal continues to catch market trends
and develop new applications to meet market needs.
■ Smart Wearable Devices
Compal is the biggest ODM supplier for more than 70 models of Google Wear OS Smartwatch. The smartwatch
market is expected to maintain its high growth for the next three years. Compal will endeavor to win more world-
wide brand customers while studying market demand and adjusting the direction of product development to meet
market trends.
■ Smart Hearable Devices
Compal already shipped several models of smart hearable products, including Bluetooth headsets and TWS
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earbuds. Because smart hearable products requires high accuracy and miniature manufacturing, Compal is also
devoting to optimize the product design and improve manufacturing process to enhance production efficiency.
■ Smart Display Products
Developed mass-produced ultra-high-resolution smart TVs and successfully gained 7% of the North American
smart TV market. Understanding the market needs in advance to adjust the product development direction is
crucial to successfully winning the existing customer cooperation plan. In the future, we will continue to maintain
the momentum of shipments, and actively expand new product lines to maintain stable growth.
■ AR/VR Smart Devices
Successfully developed the AR/VR all-in-one model, which was adopted by several industrial information system
integration companies in Taiwan as an exemplary solution. AR/VR modules are also adopted by some China
companies, for health, manufacturers used to develop and integrate into various applications. So far, high-end
AR/VR devices are dominated by vertical market applications. In the future, in accordance with the AR/VR market
trend and the 5G communication deployment, Compal will invest more resources to develop both commercial and
consumer products.
3. Future Supply and Demand Situation and Growth of the Market
■ Notebooks
According to IDC statistics, global notebook market shows a 29% of year-on-year growth in 2020. In 2021, with the
long ten impact of the pandemic, the demand for consumer and commercial device will remain strong. However,
components shortage crisis may affect notebook shipment.
■ Ultraslim Notebooks
The Ultrabook PC has been well-received and is not limited to the premium market. More and more mid-line and
entry-level models have also shifted towards more compact design. IDC statistics show the global shipping quantity
for Ultra slim laptops (no thicker than 18mm) in 2020 was approximately 63.0 million units with 52% year-on-year
growth. An annual growth rate of 31% is expected for 2021 with a total shipping quantity exceeding 85.5 million
units.
■ 2-in-1 Notebooks
Much effort and hard work from the industrial chain, has resulted in the costs and prices for 2-in-1 Notebooks to
become substantially lower as consumers have gradually become more receptive and familiar with the product.
IDC statistics show the global shipping quantity for 2-in-1 Notebooks in 2020 was approximately 91.41 million units.
It is expected by that 2021, different manufacturers will offer more diversified products and new features such as
5G/AI. It will contribute to an annual growth rate of close to 6%, with a global shipping quantity exceeding about
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97.29 million units. 2-in-1 Notebooks will inject new vitality into the notebook PC market.
■ All-in-one (AIO)
IDC statistics show the global shipping quantity for AIO PCs in 2020 was 11.06 million units and the number is
expected to remain about the same at 11.4 million units in 2021. Compal will continue to cultivate the market.
■ 5G Module and Products
Cisco internet report points out that in the next 2 years, 70% of the world's population (5.7 billion people) will
have mobile networks, and at least 10.6% (600 million people) of mobile networks will be enabled by 5G networks.
5G products will have rapid growth, and it’s estimated more than 2 billion 5G devices of various types (average 2
to 3.6 connected devices per person) will be purchased. Compal will develop 5G products with customers and
various 5G domain partners.
■ Tablets
Impacted by the global IC shortage in the first half of 2021 and the pandemic getting controlled, it’s predicted that
the shipping quantity in 2021 would decline, comparing to 2020. However, Compal still anticipates some gradual
growth in demand. This will be the result of increased network coverage and telecommunication facilities, as well
as active promotion of 4G connectivity by the service providers in emerging regions. Compal will direct its
experience in smartphone design towards the development of tablets with carrier access and also design entry-
level tablets, also with carrier access, to accommodate the growing demand.
■ Smartphones
According to IDC's, the impact of the COVID-19 pandemic in 2020 will impact the short-term global outlook. It is
estimated that the global smartphone market will recover in 2021 up to 1,350 million with 5.5% YoY compare to
1,280 million. Compal invests in high cost-effectiveness 5G Smartphone models with existing customers, also
expands to new customers, to ensure stable sales momentum.
■ Smart Wearable Devices
IDC predicts that smart watches will continue high growth in the following years. To be well-prepared for the
potential momentum, Compal is developing more advanced features such as sensors for activity detection, 4G LTE
for always connection, Voice control and AI integration. Compal will continue to accumulate the relevant
technologies to extend its reach into more diversified wearable device product lines.
■ Smart Hearable Devices
According to research from IDC, the global hearable market will remain strong for serveral years in the future,
driven by different marketing strategies: independent product or accessory of smartphone and smartwatch. More
vendors join into the market and it becomes more competitive. To create more value, Compal is focusing on new
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technologies for longer battery life, better sound quality, more efficient connection, and smarter user interaction.
■ Smart Display Products
According to Omdia estimates, the global LCD TV in 2021 was still affected by the COVID-19 epidemic and is
expected to have a flat grow at 0.2%. However, the market's development of high-end LCD TV products will
continue to focus on such as artificial intelligence image processing and artificial intelligence sound processing,
ultra-high resolution, built-in voice assistant, Mini and Micro LED backlight solutions, large size, high dynamic range
(HDR) and wide color gamut (WCG), makes TV pictures closer to natural scenes when rendered, and provides
consumers with true-to-life audiovisual enjoyment.
■ AR/VR Smart Devices
According to IDC estimation, the annual average growth rate (CGAR) of AR/VR will exceed 80%, the global AR/VR
device shipments have strong growth power. Compal actively taps into both commercial and consumer markets.
■ Smart Home Devices
According to Strategy Analytics, Smart Home sales will continue to grow with 11% CGAR and more than 15%
worldwide households will have one or more Smart Home devices. Compal will actively establish its presence in
the Smart Home market.
■ IoT Vertical Solution
According to the forecast of Statista, the IoT connected devices are projected to amount to 10 billion units in 2021,
and will grow to 25 billion units by 2030, which shows that the market demand is still climbing.
■ Smart Medical and Healthcare
(1) Management Systems:
• Electronic Medical Records (EMR) and Smart Ward Solutions: According to estimates by FMI, the global
market for Electronic Medical Records (EMR) and management systems is expected to grow from USD 11.4
billion in 2015 to USD 19.7 billion by 2025, with an annual growth rate of 5.6%.
(2) Instruments, Equipment, and Accessories:
• Smart sports products: Estimates of Market Reports Hub show that the value of smart sports goods will
increase to USD 15 billion in 2021, with professional athletes, professional teams, amateur athletes, and
highly self-demanding trainers as the major consumer groups.
• Medical devices and healthcare-related products: Estimates of Research and Markets show that the scale
of the global medical device market will expand from USD 370 billion in 2018 to over USD 400 million in
2023, with an annual growth of 4.5%.
•
Innovative medical devices: The sales of innovative medical devices, such as the continuous blood sugar
monitoring system, reached USD 1.8 million in 2018 and will hit USD 2.5 billion in 2026, with a CAGR of
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33%.
• Severe cardiovascular diseases monitoring AI: Estimates of Global Markets Insights show that the scale of
the global medical AI market will reach USD 13 billion in 2025, with a CAGR of 40%.
■ Auto electronics (AE)
IHS estimates global light vehicle production in 2021 will reach 83.4 million units, up 9% YoY from 76.5 million in
2020.
■ Server
IDC statistics show that the demand for x86 servers was 15.99 million sets in 2020 and will reach 16.92 million sets
in 2021. The server demand will continue to rise in the next few years as boosted by the cloud computing demand,
which is the major source of x86 server demand accounting for nearly 95% of the shipping volume. As the frame-
type server has a higher market share, we have actively engaged in the server market.
4. Competitive advantage:
Compal has the long-time investment in Information and Communication Technology (ICT) industry and has
committed to its role as an ODM. The following is a description of our competitive advantages in terms of R&D
and mass production capacity:
■ Notebooks
The Company has been manufacturing notebooks since 1989 and is one of the most experienced notebook
manufacturers in Taiwan. Products designed by the Company have won many Editor's Choice awards from
renowned magazines worldwide as well as awards from the Taiwan External Trade Development Council.
Furthermore, our design team has great sensitivity and responds to market changes with new commercialized
products. To enhance product competitiveness, Compal has assembled an R&D team that specializes in the
research of new materials and technologies as well as to adding more value to products. The Company also has an
intellectual property rights system in place to protect new technologies developed by the R&D team.
The demand for notebooks by general consumers has dwindled consistently due to the rise of handheld devices.
This has forced manufacturers to switch competitive strategy towards faster response and more ergonomic design.
The Company has always been sensitive to changes in the market and product trends. The next generation of
products is planned well in advance to capture market opportunities and generate revenue.
■ Ultraslim Notebooks
Compal continues to stay ahead of its competitors in terms of technology advancement and R&D and strives to
bring innovation to its designs. In 2021, Compal will maintain this advantage actively assist customers in the
development of more competitive Ultra slim Notebooks.
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■ 2-in-1 Notebooks
Compal has extensive experience in the development and manufacture of both notebooks and tablets. By adding
a bit of innovation, Compal is confident of their ability to create new demand for these products.
■ All-in-one (AIO)
Compal possesses the advantage and ability to commercialize products quickly in this respect. To further
emphasize product differentiation, a dedicated software development team has been assembled to carry out
software development and man-machine interface integration, to make the products more suitable for consumer
needs.
■ 5G Module and Products
Compal has long-term communication technology development and has involved itself in the evolution of global
communications standards (2/3/4/5G). With complete technical capabilities and manufacturing advantages,
Compal can provide customers and partners with the most competitive and flexible solutions.
• One-stop capability and services from communication and whole machine design and manufacturing
• Obtained carrier Interoperability test (IoT) and certification
• Obtained product certifications, including GCF, CE, CCC, TELEC, FCC, and PTCRB... etc.
■ Tablets
Compal remains somewhat optimistic about the future of the tablet market. We will continue to introduce
differentiated and competitively priced products to consumers. The Company will also explore the possibility of
introducing products that support 4G/LTE/5G Carrier Aggregation (CA), using the experience and knowledge
accumulated in smartphone manufacture, to meet rising demand.
■ Smartphones
Compal has accumulated many years of experience in smartphones. The ability to develop software and hardware
and incorporate research outcomes and technologies into products has earned us the recognition of customers all
over the world. Furthermore, the advantage of producing with economies of scale creates exceptional bargaining
power with respect to the pricing and timing of material supply. This allows much more flexibility and control over
raw material purchases.
• Development of 5G communication technology and keeping pace with emerging technologies.
• The introduction of AI, the virtual personal assistant and a more intuitive user interface.
• The enhanced application of biometric technologies.
• Consolidate the research and development of 5G system and RF antenna design.
•
Integrating upstream and downstream supply chains, providing ODM/JDM/EMS flexible product design
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solutions.
■ Smart Wearable Devices
Compal has developed many different types of wearable devices ahead of its international peers. We have long-
term strategic partnerships with technology leading companies such as Google and Qualcomm for development
of innovative technology. Compal currently offers an extensive range of products, and leads the industry in many
advanced technologies, including video, audio, wireless, and wearable materials.
■ Smart Hearable Devices
Compal has years of experience in acoustic, wireless communication, mechanical structure design for smart mobile
devices. We have experienced engineering teams, systematic development processes, and complete test
processes and facilities. We can also provide supply chain management services and excellent cost and quality
control. All these can be beneficial to our brand customers or distributors.
■ Smart Display Products
• Continue to develop artificial intelligence in the improvement of picture and sound quality and the application
of voice assistants, integrate cross-domain product research, and development resources to expand the
industrial ecological chain.
• Continue to cultivate strategic partnerships between customers and suppliers, and actively adjust the
allocation of resources between production bases and supply chains, further improving our competitive
advantage in order to create a win-win business and strive for market share.
■ AR/VR Smart Devices
Compal continues tight cooperation with Qualcomm, in the R&D and design capabilities of the existing product
line, linked to 5G communications capabilities and develop cloud software platforms, to provide customers full
software and hardware solutions, and also provide customized services to fulfill market and user requirements.
■ Smart Home Devices
Compal will leverage its hardware design, software, and firmware capabilities in consumer devices and
communication fields, and invest in the development of a cloud computing software/platform. To provide
complete Smart Home solutions and bring customers more integrated solutions and customizable applications to
meet customer and market users’ expectations.
■ IoT Vertical Solution
Compal aims to expand its notebook design capabilities to that of industrial products computers with different
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capabilities and specifications to provide customers with the most comprehensive solutions. Furthermore, Compal
will be re-designing its factory production lines to conform to special specifications and test requirements for new
product applications for medial and vertical industries. A hardware or software module design AI will be
incorporated in vertical solutions as needed to complement the overall service package and to ensure greater
reliability of the products offered.
■ Smart medical and healthcare
Compal will leverage its existing ITC capabilities and cloud platform to explore cross-industry alliances and
opportunities to satisfy customer needs with diverse products and services.
■ Auto electronics (AE)
Under megatrends in automotive: Electrification, connectivity, ADAS/AD, we strive to prosper our existing business
by concurrent engineering with customers to achieve cost competitiveness and 0 ppm quality in IVI systems and
ICT solutions, and leverage core technologies and experiences to new product to explore new business
opportunities.
■ Servers
Compal has many years of experience in the design and manufacturing of computers, and this has helped with our
entry into the server industry. Compal's existing business relationships with world leading server manufacturers
also works in our favor.
5. Future opportunities, threats, and responsive strategies
■ Opportunities
• The improvement of CPU performance supports the evolution of commercial laptops. It also not only allows
increasing productivity at work but triggers business laptop replacement.
• The pandemic has prompted people to embrace flexible work and learn styles; it leads to strong notebook
demands.
•
Innovation from world leading brands puts the Company in a position to dictate new products and markets.
• Expansion of software development, aesthetic design and man-machine interface talent has greatly improved
the ergonomics of products manufactured by Compal, which adds both value and appeal to customers.
• Compal's strong R&D, manufacturing and operational management experience has earned the trust of world-
renowned brands.
• Compal has rigorous processes in place to monitor cost from initial R&D to manufacturing and is therefore able
to maintain a competitive edge with our products.
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• A rational pricing strategy supported by an alliance with parts suppliers helps secure market growth.
• Connectivity not only brings convenience, but also adds value and competitiveness to the products offered.
• Compal actively forms alliances with participants across industries. This helps the Company to increase product
and customer diversity.
• Compal remains active in developing innovative technologies and exploring new product concepts. The
Company works alongside customers in developing new product lines, and in so doing secures access to new
products and technologies.
• Compal has the technical capabilities to make smartphones and tablets in ways that support new IoT
applications such as smart speakers, smart voice assistance, etc. as well as the ability to explore new
opportunities across different industries.
• Driven by growing demand for wearable devices, Compal continues to mass-produce products and develop
new proposals and innovations with major customers, continuing to maintain the Company’s position as the
leading producer of wearable devices.
• Compal is aggressively investing in 5G development and puts much innovative energy into 5G and product
development to provide the 5G applications requested by their customers.
• The US trade war is expected to enhance Compal’s design opportunities and slow down the price competition
among China manufacturers.
•
•
Integrate 5G communication capabilities with partners inside and outside the Compal group to develop various
5G domain and industrial applications.
Integrate holographic 3D streaming media, 5G communication technology, artificial intelligence (AI) to build
the next-generation AR/VR.
• Actively apply for audio and voice analysis patents to enhance global patent deployment.
• Enhance artificial intelligence (AI) technology as the foundation of the next-generation of smart devices.
■ Threats
• The global shortage of semiconductors will affect notebook shipment in 2021.
• The industry now competes in terms of vertical integration as opposed to specialization, which involves more
costly investment, higher market complexity and more challenging business management. Faced with the rise
of the Chinese supply chain, Taiwanese notebook manufacturers need to coordinate operations to be able to
match the integrated design, development and assembly capacity from China.
• The Notebook is a highly matured product and requires more diverse, value-adding, and innovative features
for differentiation from other market participants.
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•
Intense competition in the IoT market can give rise to inconsistent quality and make competition in the industry
more difficult.
• Ongoing price competition among smartphones has a significant impact on large-brand customers.
• Overall demand for tablets has declined, which adds to the competitive pressure.
• Wearable devices are still in the early stages of development and require sustained periods of expansion to
reach an economy of scale.
• 5G is distributed in various domains, many industries are in the POC stage, and 5G innovative new business
model is still under development.
■ Strategies
• The Company will adopt strategies that focus primarily on innovation, product added value, and service.
• Quality and production efficiency will be improved to reduce manufacturing costs.
• The use of land and human resources in emerging countries throughout the world will be optimized to reduce
the cost of production and basic R&D.
• We will enhance the product design review process and develop a comprehensive database of documents to
improve design efficiency and quality while reducing costs.
• New customers and new product lines will be explored in emerging markets.
• We will launch ultra slim notebooks integrating high performance and portability in response to the machine
renewal demand in the commercial market to seize the commercial market together with customers.
• The gaming market has grown in diversity with new technologies constantly being introduced to entice
consumers into replacing old products. Compal is in the position to offer gaming notebooks at various price
levels to meet consumer demand.
• We will offer complete solutions and form alliances across industries to quickly tap into market demand while
retaining the flexibility to satisfy customer needs.
• We will nurture innovative talent within the organization, enhance the development capacity for high-end
medical equipment and engage world-renowned medical equipment suppliers in strategic, long-term, and
mutually beneficial cooperation.
• We will continue to strengthen working relationships with platform operators by providing hardware and
software solutions.
• We will continue to extend our 5G communication capabilities to various 5G domains and types of product,
build up leadership in 5G, and provide complete total solutions.
• We will provide complete AR/VR solutions and collaborate with various domain partners, to create market
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penetration, and increase customer satisfaction.
• We will continue to develop high-end acoustic technologies for smart hearable products, and collaborate with
audio professors and Taiwan Top acoustic research centers.
• We will cultivate internal R&D talents of artificial intelligence (AI) technologies, hold artificial intelligence
seminars, and training courses.
5.2.2 Major Products and Their Main Uses
1. Main product applications
■ Notebooks
An analog-digital application hardware platform combined with dedicated software to enable a variety of
applications such as data editing/processing, word processing, layout, graphics applications, web browsing,
communications, digital multimedia entertainment, gaming, content creation and others.
■ Ultraslim Notebooks
A laptop that emphasizes thinness and is lightweight and takes into account computing as well as battery
performance to meet the consumer need for both portability and productivity.
■ 2-in-1 Notebooks
These devices use the Windows 10 operating system, have an optional stylus, and satisfy the growing consumer
demand for mobile computing. In addition to multiple operating modes, the device has a touch screen that enables
it to be used as a tablet.
■ All-in-one (AIO)
Beautiful aesthetics suited for home, commercial, and design use, with emphasis on a touch screen input interface,
a range of software applications and high computing power.
■ Smart Home Devices
Smart appliances, controls and sensors that provide users with diversified services for a smart lifestyle.
■ Tablets
Portable touch screen multimedia, mobile viewing, and online information applications.
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■ Smart Display Products
Graphics displays with audio output.
■ Smartphones and Modules
Personal communication and internet access.
■ IoT Vertical Solutions
Flexible hardware designs allow a range of customized software applications along with cloud and big data analysis
for horizontal alliance. We offer clients complete solutions and services by the creation of novel applications.
Unlikely conventional IT products, such as AGV and VR/AR glasses AI products usually need customization for
various needs, but they elicit greater brand loyalty.
■ Smart Medicine and Healthcare
Penetration into households and point-of-care areas using technology, including that of the IoT, and gradual
integration with our own peripheral software products allows the provision of comprehensive solutions. These can
give convenient and instant smart health care that will enhance dependence on the products as well as engender
user brand loyalty.
■ Auto electronics (AE)
‧
In-Vehicle Infotainment systems
‧ Vehicle communication (4G/5G) systems
‧ Voice controlled natural sound navigation
‧ Android Auto/Carplay connectivity, Smartphone connectivity
‧ Smartphone Auto connection
‧ Accident alarm.
‧ ADAS warning system
■ Servers
Designed for high power computing, capable of storing massive amounts of data and compatible with different
processing programs for data analysis. Built to accommodate different applications required by enterprises, data
centers, and cloud platforms.
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2. Production Process of the Main Products
■ Notebooks
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Casing of logic board Preparation of LCD display Assembly Preparation of main board Preparation of keyboard Fasten LED board Inspect LCD panel Input inspection Input inspection Prepare plunger + frame Fasten power switch board Fasten interface board to lower casing Fasten motherboard to frame Parts processing Install frame onto metal board Produce LED frame Fix LCD panel to lower casing Prepare battery spring SMT (surface mount technology) Apply double-sided tape Apply hook to casing Prepare battery wire Insert add-ons Insert keys Combine upper & lower casing Prepare disk drives Visual inspection Press keys and check Assemble LCD casing & logic board upper casing Fasten disk drives+motherboard to bottom casing Soldering furnace Production process inspection Fasten power board to motherboard Remove board Install PCB to lower casing Production process inspection Trip conductor Install wires to lower casing & fasten Fasten LCD casing & bottom casing Machine wash Assemble upper casing Battery assembly Apply heat sink Prepare name plate Keyboard installation Secondary soldering Process quality inspection Function test Brush clean Accelerated aging test Visual observation Function test Repair Prepare name plate & paste onto unit Process quality inspection Wipe down unit Automated machine testing Exterior inspection Accelerated aging test Unit packaging Automated machine testing QA testing
■ LCD TVs and Monitors
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Display panel Power panel Assembly of LCD TV & monitor ↓ ↓ ↓ Parts processing Parts processing Prepare parts ↓ ↓ ↓ SMT SMT Assemble LCD panel ↓ ↓ ↓ SMT visual inspection SMT visual inspection Fasten metal parts ↓ ↓ ↓ Manually insert add-ons Manually insert add-ons Assemble display panel ↓ ↓ ↓ Visual inspection Visual inspection Assemble power panel ↓ ↓ ↓ Auto soldering Auto soldering Install connecting wires ↓ ↓ ↓ Manual soldering Manual soldering Assemble back casing ↓ ↓ ↓ Apply heat sink Apply glue Structural inspection ↓ ↓ Apply glue Functional test ↓ ↓ Substrate test Accelerated aging test ↓ ↓ QA random inspection Screen adjustment ↓ Pressure test ↓ Electrical test ↓ Wipe down exterior ↓ Exterior inspection ↓ Paste front and back name plates ↓ QA testing ↓ Packaging ↓ Box and package ↓ Final product inspection
IMEI
OK
Packaging
OK
Shipment
■ Smartphones and Tables
Design/analyze
OK
Input material
OK
SQE test
OK
Install PCB SMD
OK
Welding of parts
OK
Base band TEST
OK
Assembly
OK
Vibration and
appearance
OK
Function test
OK
FINAL TEST
OK
CALL TEST
OK
Current IDEL
OK
Exterior
NO
NO
NO
NO
NO
NO
NO
NO
Repair
Repair
Repair
Repair
Repair
Repair
Repair
Repair
OK
OK
OK
OK
OK
OK
OK
OK
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5.2.3 Supply Status of Main Materials
■ CPU/Chipset
● Notebooks
Under the influence of COVID-19 in 2020, the global demand for working from home and studying
from home increased strongly, particularly in the demand for Chromebooks. The brand customers
stocked up ahead and the subsidy of education tenders that caused the supply and demand gap of X86
Small core CPU was particularly large. In order to fulfill for the X86 Small core demand, the brand
customers have begun to import second source with the ARM CPU (MTK and Qualcomm solution), and
it will been mass production and shipped at the end of the fourth quarter. Also, Apple laptops began
to import the ARM M1 CPU and began mass production at the end of the fourth quarter.
The overall NB demand in 2021 is still strong and demand is still greater than supply. The CPUs are still
in a tight supply, although the INTEL/AMD has increased production capacity, improved yield rate, and
imported the ARM CPUs. Due to the ARM's CPU shipment, the proportion of INTEL and AMD has been
diluted. It is estimated that the market penetration rate of INTEL will reach 76.8%, of AMD will be
17.45%, and ARM will grow to 5.75% in the future.
In terms of Intel's new products, the high-end 8 core Tiger Lake H is expected to be launched in the
second quarter of 2021, but it still only supports DDR4. The mid-range product Tiger Lake U Refresh
will launch in the third quarter of 2021 and support LPDDR5. The 10 nm Alder Lake will be launched in
the fourth quarter of 2021. The low-end CPUs are still based on the 10 nm Jasper Lake. The 7 nm
process Meteor Lake is expected to be launched in the first quarter of 2023. Intel will not have any new
14 nm product announcement.
●
Smartphones and Modules
From Q4’20 to Feb 2021, the construction process has slowed down, but the demand for major
communication system equipment vendors think demand gradually recovering. From March, the
overall industrial demand is expected.
In 2021, the global 5G mobile phone market is expected to double the size of 2020. Driven by demand
and mobile phone manufacturers' push for 5G mobile phones, global smartphone shipments in the
first quarter of 2021 will increase by 13.9% annually, and the annual growth rate will be 5.5 %, the
global smartphone market’s CAGR will reach 3.6% from 2020 to 2025. As low-to-medium 5G mobile
phones continue to be on the road and 5G network coverage, it is beneficial to further boost global 5G
mobile phone sales In spite of the continued border blockade and economic concerns, we are still
optimistic about the strong demand for smartphones, and the supply chain, OEMs and consumer
channels are ready to deal with any further blockades.
COVID-19 has disrupted the global supply chain, coupled with changes
in semiconductor
manufacturing processes, leading to chip shortages, tight semiconductor supply, and panic in the
market. Industries and customers will sway each other, affected by global 8-inch and 12-inch wafers.
The production capacity of the round factory is affected by the tight supply, and the supply cycle of
145
mobile phone AP and mobile phone power management chip (PMIC) is extend over 30 weeks.
■ Memory
●
DRAM
The price of DRAM is expected to have an upward cycle from 2021’Q1 by quarter for a whole year,
mainly from the increasing demand for server and mobile phone. Due to the production capacity of
the three major OEMs (Samsung, SK Hynix and Micron) cannot meet the demand, the major OEMs
have caught these opportunities to increase the DRMA prices significantly which results the overall
DRAM price entered an upward trend.
In term of DRAM applications, the overall demand for World Wide is calculated based on 1Gb eqv. The
shipment were 155 billion unit in 2020 and were estimated substantially rise to 185 billion units in
2021, with a compound annual growth rate of 18%. The ratio of Mobile increased to 38%, Server
remained steady at 30%, consumer dropped to 14%, PC rose to 13% and graphics accounted for 5%.
The overall of DRAM demand increase approximate 3 to 4 % higher than DRAM supply in 2021.
Meanwhile, the three major OEMs have conservative perspective on output plan as their capital
expenditures have been reduced to 1 to 2 % compared with 2020.
In term of the DRAM manufacturing process, the three major OEMs have mass-produced 1z nm since
2020’Q4 and plan to start small volume production of DDR5 in 2021’Q3. The initial production capacity
transfer to new generation of DDR5 is estimated to have a 30% loss in output due to yield loss. The
whole year output bit growth of the three major OEMs is about 17.5%, which is lower than the demand
side of bit growth by 20.8 %. Therefore, the DRAM price is expected continually to rise till 2022’Q1 due
to the shortage.
DRAM orders have soared with the booming demand for 5G, electric vehicles, game consoles, server,
smart phones, and etc.,. Besides, Bitcoin has brought extreme demand for display cards and consoles,
which increase the demand for DRAM as well. Moreover, the well-known electric vehicle manufacturer
Tesla has significantly invested in Bitcoin, which has led to a mining trend and result the lack of VRAM,
increasing the VRAM price approximate three times. It is expected that the price of VRAM is difficult
to stabilize once the mining trend remains.
In conclusion, the demand for DRAM and VRAM continues to rise due to strong demand for smart
phone, server and mining. However, the three major OEMs have taken a conservative point of view on
output plan in 2021, as they do not increase capital expenditures, meanwhile, a part of production
capacity will transfer to DDR5. As a result, the DRAM market is undersupply and price is expected to
increase continually.
■ NAND flash
Looking forward to 2021, the NAND Flash market is still optimistic. It is estimated that the supply bit growth
rate will reach 30% in the 2021 with the market demand bit growth rate may exceed 30%. The main growth
drivers include demand for data center rebounded, the 5G mobile phones, the positive outlook for automotive,
and the Internet of Things, but the demand for PC applications are relatively flat.
146
Due to the Controller IC shortage in the 2020, the price for channel products of SSD/eMMC has increased.
Some SSD module house have more Controller IC inventory, and the transfer order effect that cause the order
is maintained at the same level and NAND Flash suppliers keep high inventory. The overall NAND Flash demand
has been more stable than originally expected.
The mainstream production process still keeps on 92/96 layers, although the major NAND Flash manufacturers
introduced 3D TLC/QLC with more than 100 layers in 2020. Looking forward to 2021, mass production of 128-
layer 3D NAND will begin in the second half of the year. After the yield rate has risen steadily, the leading
products of mass production will be more than 100 layers and will get into the competition of more than 170
layers by the end of the year. Both Micron and SK Hynix adopt double-layer stacking technology with the
improvement of process, and the new generation of 176-layer NAND Flash sample has delivered for testing.
The 144-layer NAND Flash of Intel has also officially entered to market. It is expected to drive NAND Flash
manufacturer to launch 200-layer TLC or QLC in the second half of 2021 while the industry competes toward
to higher stacking processes. 7th generation 3D V-NAND of Samsung is expected to lunch the product with
above 16x layer even 176 layers, 192 layer or directly challenging to 256-layer process.
NAND Flash manufacturer are actively building semiconductor inventories recently. Not only the wafer lead-
time has extended, but also key substrate materials and Controller ICs are facing tightness. In addition, the
delay in the resumption of work at Samsung's Austin fab has made the overall SSD supply tighter. However,
Samsung still has inventory, and it is expected to enter mass production from mid-April at the second plant in
Austin, which is expected to slow down the impact of the delay in the resumption at the first plant. It is
estimated that NAND prices will rise in the Q2, but the average price will rise at a single-digit range of 3-5%.
The price will not go up too strong, even in the traditional peak season of the second half of the year. The
Industry supply and demand remain stable if the bit output with a 30% increase than the last year.
■ HDD
In 2020, the overall HDD shipments dropped by 19% compared to the previous year. The HDD attach rate has
been decreasing year-by-year with the NB becoming thinner and thinner and more mature in the cloud storage.
It is expected for HDD attach rate to be reduced to 12% that NB is mainly equipped with SSDs.
The 1TB usage rate was the highest in the 2020, and 500G accounted for about 36%, 1TB for about 61%, and
2TB for about 3% in the 2021. HDD price will continue to decline in 20201. It is estimated that the price of 500G
hard drives will remain unchanged while the price of 1TB hard drives will be reduced by 0.7% and the prices of
2TB hard drives will be reduced by 2.4%.
The overall sales of HDDs dropped from 650 million units in 2010 to 250 million units in 2020. The capacity of
HDD shipments in 2020 was about 1ZB, and it is estimated that it will increase to 2.5ZB per year by 2025. In
terms of the proportion of suppliers in HDD sales, Seagate is about 43%, Western Digital is about 37%, and
Toshiba is 20%.
■ ODD
As NB has begun to become thinner and lighter, ODD has been replaced by portable hard drives, flash drives
and clouds, so now the attach rate of the models of NB with ODD has decline are less than before.
147
There will be no new ODD models or even continue to equip with DVD-RW this year. Due to the high prices of
BD drives and the maturity of streaming services, that only a few models will be specially equipped with Blu-
ray disc drives. Looking to the future, Blu-ray disc players will replace DVDs as the mainstream of optical disc
players.
■ Batteries
Due to COVID-19, the demand for online conferences and teaching caused the notebook shipment to increase
26%, reaching to the amount of 210M in 2020. It also makes the Polymer battery cell 13% growth rate in overall
shipments. Shipments of wearable devices increased 28%. It is estimated that the demand for online teaching
and meeting will continue to be strong. The notebook shipments for in 2021 are expected to reach 268M.
However, the market still maintains a conservative view on the demand for mobile phones. There will be a
small growth of about 15%.
In 2020, the amount of electric vehicle sales and the shipment volume of Cylindrical batteries both increased
compared to the previous year. The growth in shipment volume mainly came from the continuous growth of
the electric vehicle market. The market demand is still not saturated. At present, the demand for Cylindrical
applications in vehicle batteries (EV, E-Motorcycle) is still the mainstream. Due to the potential of the battery
market, Japanese and Korean battery manufacturers have shifted their production capacity to the field of
vehicle batteries and no longer continue to work in the 3C consumer electronics market. In other words, in the
supply of the NB market, traditional Japanese and Korean manufacturers (Samsung, LG) have successively
withdrawn. This situation makes China manufacturers like BYD, NVT and SWD entered the mainstream supply
chain of NB batteries in 2021.
■
LCD panels and Touch control modules
In 2020, the world was hit by the COVID-19 epidemic. In the 2020/H1, panel shipment was negative growth.
However, the epidemic drove strong demand for "work from home", "remote teaching" and "otaku economy",
which led to the rise of IT panel production and TV brand manufacturers actively shipment. And, the industry
expanded the production capacity of high-end products, resulting year-on-year percentage increase of 11.2%
for the panel shipment in the 2020/2H. In 2020, the panel industry shipment grew by 0.3% against the trend,
ending two consecutive years of negative growth, and the annual output value reached 727.5 billion yuan.
In 2020, the panel volume of global monitors (desktop) was 163 million pieces, and the expansion has risen
sharply at the same time that it has been accompanied by substantial price increases; the number of notebook
computer panels has also been stimulated by strong demand, reaching a scale of 225 million pieces, with YoY
growth the rate is as high as 19%, but this has led to serious shortages of components including display driver
ICs, T-con ICs, and power management.
In 2020, China ranked first in export value, Taiwan ranked second, and South Korea ranked third. However,
Taiwan’s LCD panel export growth performance is better than others, with YoY increase of 5.3%, which is the
only positive growth. For YoY, China’s decline is 4.7%, South Korea’s decline is 5.6%, and Japan’s decline is 6.2%.
Display companies have actively returned to Taiwan to invest in recent years. We expanded in high-end and
niche application markets, such as e-sports, automotive and medical, etc., and develop products towards
148
higher value and differentiation, and improve and enhance the international competitiveness of the panel
industry.
In 2021, the demand for large-size LCD panels has continued to remain strong. Coupled with a slight change in
the production capacity of large-size LCD panels, the price of various application panels will continue to show
a monthly upward trend, and the quarterly increase of HD/TN will reach 12.6%, and the quarterly increase of
FHD/IPS will reach 9.1%.
The quarterly price increases for 23.8-inch and 21.5-inch monitor LCD panels can reach 17.1% and 14.6%. The
quarterly rises for the mainstream sizes of TV LCD panels are separated by 9.3% to 13.6%. Expected the large-
size LCD panel manufacturers will make profits in 2021 years.
As the epidemic situation continues, coupled with the high demand for 2020 end channels and brand
replenishment for inventory, it is expected that the overall scale of 2021/1H will maintain an increase YoY,
and the demand will gradually enter a period of saturation in the 2021/Hs. Coupled with the easing of the
epidemic, the overall demand will be retreated steadily. Due to the insufficient supply of ICs, it is estimated
that the layout of phenotype display panels will reach 166 million pieces in 2021, YoY increase of 1.01%. The
volume of NB panels is expected to reach 249 million pieces, YoY increase of 10.5%. Although the panel
production lines of major panel makers in China, South Korea, and Taiwan are basically not directly affected by
the COVID epidemic, but due to the shortage of some components, the shipment of some application products
was affected, it is predicted that the panel price increase will continue until 2021/Q3. It will not be possible to
determine the subsequent price trend until each NB brand settles the sales status of 2021/H1.
Assessing the overall NB market, the total number of NBs containing Touch panels in 2020 was about 29 million,
accounted for about 13% of the overall sales. The overall forecast for 2021 is 40 million, and the proportion
will rise to 16%.
149
5.2.4 Major Suppliers and Clients
1. Major Suppliers in the Last Two Calendar Year
2019
2020
2021 first quarter
Unit: TWD Thousands
Party
Name
Amount
As a
percentage
to 2019 net
purchases
(%)
Relationship
with the
issuer
Name
Amount
As a
percentage
to 2020 net
purchases
(%)
Relationship
with the
issuer
Name
Amount
1
2
Company E
Company B
Others
Net Purchase
301,780,015
89,789,108
527,842,635
919,411,758
32.82
9.77
57.41
100.00
N.A.
N.A.
Company E
Company B
Others
Net Purchase
331,119,065
99,887,382
567,562,431
998,568,878
33.16
10.00
56.84
100.00
N.A.
N.A.
Company E
Company B
78,683,038
26,119,584
144,130,927
Net Purchase 248,933,549
Others
As a
percentage
to 2021 first
quarter net
purchases
(%)
31.61
10.49
57.90
100.00
Relationship
with the issuer
N.A.
N.A.
Unit: TWD Thousands
2. Major Clients in the Last Two Calendar Years
2019
2020
Party
Name
Amount
As a
percentage
to 2019 net
sales (%)
Relationship
with the
issuer
Name
Amount
1
2
3
4
Company a
96,591,070
Company d
390,210,303
Company e
105,890,275
Company f
212,262,458
Others
175,488,240
9.85
39.80
10.80
21.65
17.90
Net sales
980,442,346
100.00
N.A.
N.A.
N.A.
N.A.
Company a
Company d
Company e
120,376,434
431,621,595
75,903,386
Company f
240,039,272
Others
Net sales
180,988,564
As a
percentage
to 2020 net
sales (%)
11.48
41.15
7.24
22.88
17.25
Relationship
with the issuer
Name
Amount
2021 first quarter
As a
percentage
to 2021 first
quarter net
sales (%)
12.28
Relationship
with the issuer
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
Company a
33,152,495
Company d 106,486,389
39.44
Company e
24,725,124
Company f
60,057,838
Others
45,569,687
9.16
22.24
16.88
1,048,929,251
100.00
Net sales
269,991,533
100.00
150
5.2.5 Production in the Last Two Years
Year
Production
volume/
value
Main products
2019
2020
Unit: 000 Units; TWD Thousands
Production
capacity
Production
volume
Production
value
Production
capacity
Production
volume
Production
value
5C electronics
136,388
115,443
942,905,972
154,830
130,051
1,009,349,172
5.2.6 Shipments and Sales in the Last Two Years
Year
Sales volume
Main products
5C electronics
2019
2020
Domestic sales
Value
Volume
Export sales
Volume
Value
Domestic sales
Value
Volume
Export sales
Volume
Value
266
1,134,242
117,245
979,308,104
769
3,095,681
130,581
1,045,833,570
Unit: 000 Units; TWD Thousands
5.3
Human Resources
Year
December 31, 2019 December 31, 2020
March 31, 2021
Number of employees
81,743
112,761
97,843
Average age
Average years of service
Academic
qualifications
Doctoral Degree
Master’s degree
University
High
school/Below/others
28.84
2.08
0.05%
3.81%
19.33%
76.81%
28.12
1.70
0.04%
3.18%
15.80%
80.98%
29.53
1.99
0.05%
3.60%
16.77%
79.58%
151
5.4
Environmental Protection Expenditure
1.
Compal is an assembler of electronic products and produces no significant pollution
The Company is an information electronic product assembly plant, a non-high energy consumption, high water
consumption and high pollution industry. In order to protect the environment, it fulfills its social responsibilities,
saves energy and reduces carbon, and reduces the impact of global warming. The Taiwan and Mainland China
plants together incurred expenses of TWD 47,756,213 (excluding regular maintenance and green R&D) in 2020.
We are keeping the promises we made as an earth citizen and hope to make substantial contributions to the
protection of the global environment. We will continue our commitment to efforts in this respect. In 2020 and
as of the date of report published, Compal had no violation of environmental laws, and will keep abreast of
relevant regulatory updates and respond immediately to reduce the risk of violations.
2.
Compliance with EU RoHS directives
All Compal products are 100% compliant with EU RoHS Directives. There have been no cases of returns for non-
compliance. The relevant specifications for the use of plasticizers DEHP, BBP, DBP and DIBP, which came into
effect in 2019, and have been effective since July 2, 2018.
To manufacture environmentally friendly green products and meet the requirements of both international
environmental laws and client demand, the Company has implemented “Management Standards for the
Control of Environment-Related Substances in Parts and Materials” that covers all hazardous substances
currently prohibited by law and banned by customers. We have implemented efficient and effective methods
of inspection for hazardous substances using recognized component classification and risk control to establish
a plant monitoring mechanism for oversight and verification.
3.
Responsive strategies and possible expenses
In the future, the Company will continue to implement its environmental responsibilities including the boosting
of staff knowledge of environmental matters, and the advocation of updated green living knowledge, the
Company’s response to government policy with respect to green consumption, and the regular priority
assessment of green product content in procurement, as well as continuous improvement in the energy
efficiency of our plants. This includes scrutiny for all kinds of possible violations of environmental regulations
in the operations management system, and the mandate to have a timely response to all environmental laws.
5.5 Labor Relations
1. Availability and execution of employee welfare, education, training, and retirement policies. Elaboration
of the agreements between employers and employees, and protection of employee rights.
■ Employee welfare
In addition to all employees’ statutory labor rights and to help them find a balance between work and personal
life, both physical and mental, and to improve their vitality in the workplace, the Company has an Employee
Benefits Committee, a Life Committee, and other groups responsible for promoting worker welfare. The
employee health benefits and activities include a fitness center, a medical facility, periodic health checks,
152
recreational team competitions, family activities, travel, the arts, and leisure and all kinds. Group Life Insurance
is covered by the Company that includes accident, medical, and cancer. Employee dependents may also join
the scheme at a discounted rate, but at their own expense. We also have benefits such as scholarships for
employees and their children.
The Company actively supports the government in resolving the low birth rate crisis and childcare policy in
Taiwan. Since 2011, we have provided generous maternity grants for employees and their spouses and children.
By the end of 2020, the Company had provided TWD 182.09 million in maternity allowances and bonuses.
There were 38 counts of employees who took parenting leave, with the right to return, in 2020.
■ Education and training
The Company set training credits and outlined the credit system according to the needs of each level. The
Company also integrates all training records in an online learning platform to further assist the competent staff
in keeping abreast of learning progress.
In 2020, a total of 888 training sessions (both internal and external) were organized; these courses delivered
156,447 hours of training and 65,668 persons enrolled. The total training expenses were TWD 26,104,000. The
training courses included:
‧ Orientation: New hire seminars and corporate culture experience camps were organized to help
new hires better understand Company culture, the current status of the industry, and Company
strategy and vision.
‧ Language training: Basic to advanced English and Japanese courses that train employees to
respond to customers and gives them a global vision through workspace situational training.
‧ Managerial skills Training: To establish a comprehensive blueprint of development level,
strengthen core competency at all levels in such aspects as teamwork, problem analysis,
innovative thinking... and soon, to conduct planning for Company talent training at various
stages.
‧ Professional training: Categorized new professional knowledge lectures, courses, and
experience heritage job training to enhance employee expertise and technology and to
enhance Company core competitiveness through systematic management.
‧ E-learning: Offers related courses in new hire requisites, IT, Six Sigma, language, management,
CSR, and occupational safety. The Company uses Internet learning and resource sharing to offer
real-time learning. The effect is maximized with a complete learning and training mechanism
that utilizes a comprehensive knowledge management system.
■ Retirement system
To arrange retirement for employees, the Company has issued regulations of labor retirement, which stipulate
the conditions and standards for retirement, application, as well as operation of labor Pension Preparation
Fund based on law. A supervisory committee for the workers’ retirement preparation fund has also been
established. According to the Regulations for the Allocation and Management for the Pension Preparation Fund,
153
we contribute and deposit labor pension preparation funds into the dedicated account of the Bank of Taiwan
per month to protect employees’ rights. In accordance with the Labor pension Act, we have contributed 6%
pension into personal account for befitted employees. Also, for those who volunteered to contribute pension,
voluntary withholding rate is deducted from the employees’ monthly wage to the individual retirement
account of the Labor Insurance Bureau since 1st July in 2005.
■ Employer-employee communications and the enforcement of worker rights
The Company has always valued employer-employee relations and has communication channels available to
facilitate two-way communication that allows the Company to respond to the thoughts and opinions of
employees in a prompt manner. The Company not only has policies in place to protect employee rights, but
also makes decisions in the best interests of its employees.
2.
Personnel management
The Company has clear policies in place to manage human resources and to guide employee behavior. There
are specific levels of approval authority and detailed rules to guide decisions concerning employee
recruitment, promotion, appraisal, assignment, leave of absence, resignation, confidentiality agreements,
reward and discipline. These policies and rules exist to eliminate subjective judgment and to create a fair,
open, and systematic corporate culture.
3. Work environment
‧ Buildings are subjected to annual fire safety inspections and reports.
‧ Buildings, plants and equipment are inspected daily and maintained on a regular basis.
‧ The Company hires regular cleaning services to ensure the cleanliness of its work environment.
4.
Employee safety
‧ Personnel entry and exit is controlled by a security system.
‧ Security personnel are stationed 24 hours a day to patrol plant premises and monitor the
surveillance system.
Lectures and rehearsals are organized annually to demonstrate proper responses to cases of
‧
emergency.
5. Actual or estimated losses arising as a result of employment disputes in the recent year up to the
publication date of this annual report, and any responsive measures taken
‧
In 2020 and as of the date of report published, Company did not suffer any losses due to employment
dispute: None
‧ Future plans and potential expenses: None
154
5.6
Important Contracts
Agreement
Counterparty
Patent
Phoenix
licensing
Technologies
agreement
Ltd.
Period
Since
2010.1.1
Auto-renewed upon
expiry
Since
Major Contents
1. Tool Licenses
2. Source Code licenses
3. Maintenance
Under this agreement, the buyer will procure computer
products developed and manufactured by the seller,
while the seller will grant the buyer proper licenses to
use the products and provide after-sales technical
services.
Trading and
manufacturing
agreement
Dell Products
1997.06.26
L.P.
Auto-renewed upon
expiry
Trading and
manufacturing
Acer Inc.
agreement
Since 2001.10.01
Under this agreement, the buyer will procure computer
Yearly
products developed and manufactured by the seller,
Auto-renewed upon
along with after-sales technical services provided by
expiry
the seller.
155
VI. Financial Information
6.1
Five-Year Financial Summary
1. Condensed Balance Sheet and Statement of Comprehensive Income
▓ Consolidated Condensed Balance Sheet
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March 31,
2021
Analysis
Current assets
Property, plant, and
equipment
Intangible assets
Other assets
Total assets
Prior to
Current
distribution
liabilities
After
distribution
2016
2017
2018
2019
2020
300,469,007
321,782,654
362,745,250
343,154,813
424,460,635
401,592,642
20,952,677
18,179,367
20,418,228
19,972,347
22,085,340
1,291,281
1,284,660
1,516,253
1,553,342
24,303,146
22,109,740
15,115,092
17,967,917
1,506,101
18,873,622
23,539,019
1,646,307
19,363,061
347,016,111
363,356,421
399,794,823
382,648,419
466,925,698
446,141,029
209,232,199
231,955,732
274,207,898
255,820,033
335,524,716
319,499,755
214,478,756
237,184,287
279,436,453
261,048,588
342,496,124
(Note 2)
-
Non-current assets
25,500,097
22,752,717
12,425,077
12,069,042
15,411,332
15,283,486
234,732,296
239,978,853
Prior to
distribution
After
distribution
Equity attributable to
parent company
shareholders
Ordinary shares
Capital reserves
Prior to
Retained
distribution
earnings
After
distribution
234,732,296 254,708,449 286,632,975
267,889,075
350,936,048
334,783,241
239,978,853 259,937,004
291,861,530
273,117,630
357,907,456
(Note 2)
-
105,804,389
101,895,584
105,723,646
105,972,633
106,832,505
102,790,213
44,241,606
44,191,916
44,071,466
44,071,466
11,779,274
10,938,773
9,932,434
9,159,259
44,071,466
8,342,813
44,071,466
6,662,275
55,289,409
56,557,146
60,060,381
57,726,604
62,566,181
59,892,107
50,867,256
52,149,999
55,653,234
53,319,457
57,277,605
(Note 2)
-
Other equity interests
(4,624,653)
(8,911,004)
(7,459,388)
(4,103,449)
(7,266,708)
(6,954,388)
Treasury stock
(881,247)
(881,247)
(881,247)
Non-controlling interests
6,479,426
6,752,388
7,438,202
(881,247)
8,786,711
(881,247)
9,157,145
(881,247)
8,567,575
Total equity Prior to
distribution
After
distribution
112,283,815 108,647,972 113,161,848
114,759,344
115,989,650
111,357,788
107,037,258 103,419,417
107,933,293
109,530,789
109,018,242
(Note 2)
-
Note: 1. The financial information is audited and certified by the CPA every year. The financial information as of March 31, 2021,
has been reviewed by the CPA.
2. The amounts are approved by the Board of Directors meeting on March 26, 2021.
156
▓ Consolidated Condensed Statement of Comprehensive Income
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March 31,
2021
2016
2017
2018
2019
2020
766,810,035
887,656,959
967,706,411
980,442,346
1,048,929,251
269,991,533
32,836,970
31,964,569
30,567,091
33,908,828
35,458,522
Analysis
Net sales revenue
Gross profit
Net operating income
11,063,645
9,208,429
9,261,746
10,586,368
11,492,545
Non-operating income and
expense
749,700
(1,094,152)
2,527,839
(578,492)
1,630,171
9,601,582
3,274,888
393,753
Net income before taxes
11,813,345
8,114,277
11,789,585
10,007,876
13,122,716
3,668,641
Net income from continuing
operations
Net loss from discounting
operations
8,968,006
6,158,037
9,589,301
7,895,719
10,409,512
2,908,635
-
-
-
-
-
-
Net income (loss)
8,968,006
6,158,037
9,589,301
7,895,719
10,409,512
2,908,635
Income (Loss) from Other
comprehensive income (loss)
(1,265,546)
(4,604,412)
387,887
(1,534,980)
(3,341,346)
(318,624)
(net after tax)
Comprehensive income
7,702,460
1,553,625
9,977,188
6,360,739
7,068,166
3,227,259
Net income attributes to
shareholders of the Parent
Net income attributes to non-
controlling interests
Comprehensive income
attributed to owners of parent
Comprehensive income
8,130,890
5,749,525
8,913,365
6,955,899
9,361,893
2,620,164
837,116
408,512
675,936
939,820
1,047,619
288,471
6,916,562
1,189,818
9,278,187
5,456,508
6,083,542
2,932,087
attributed to non-controlling
785,898
363,807
699,001
904,231
984,624
295,172
interests
Earnings per share (unit: dollar)
1.88
1.32
2.05
1.60
2,15
0.60
Note: 1. The financial information is audited and certified by the CPA every year. The financial information as of March 31, 20201
has been reviewed by the CPA.
157
▓ Parent-Company-Only Condensed Balance Sheet
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March
31, 2021
Analysis
Current assets
Property, plant, and
equipment
Intangible assets
Other assets
Total assets
Current
liabilities
Prior to
distribution
After
distribution
2016
2017
2018
2019
2020
237,412,415 240,677,588 265,372,906
245,522,829 296,383,073
2,132,114
2,092,272
2,128,181
2,620,638
2,604,893
268,316
146,813
378,745
438,334
436,548
88,808,075
85,179,393
87,932,981
89,201,687
89,526,637
328,620,920 328,096,066 355,812,813
337,783,488 388,951,151
197,566,162 203,492,102 237,882,742
220,871,943
268,466,052
202,872,746
208,780,678
243,171,318
226,160,519
275,517,487
(Note 2)
Non-current assets
25,250,369
22,708,380
12,206,425
10,938,912
13,652,594
289,170,081
N.A.
(Note 2)
44,071,466
8,342,813
Total
liabilities
Prior to
distribution
After
distribution
222,816,531 226,200,482 250,089,167
231,810,855 282,118,646
228,123,115
231,489,058
255,377,743
237,099,431
Ordinary shares
Capital reserves
44,241,606
44,191,916
44,071,466
44,071,466
11,779,274
10,938,773
9,932,434
9,159,259
Retained
earnings
Prior to
distribution
After
distribution
55,289,409
56,557,146
60,060,381
57,726,604
62,566,181
50,867,256
52,149,999
55,653,234
53,319,457
57,277,605
(Note 2)
Other equity interests
(4,624,653)
(8,911,004)
(7,459,388)
(4,103,449)
(7,266,708)
Treasury stock
(881,247)
(881,247)
(881,247)
(881,247)
(881,247)
Total equity
Prior to
distribution
After
distribution
105,804,389 101,895,584 105,723,646
105,972,633 106,832,505
100,557,832
96,667,029
100,495,091
100,744,078
99,861,097
(Note 2)
Note: 1.The financial information is audited and reviewed by the CPA every year.
2. The amounts are approved by the Board of Directors meeting on March 26, 2021.
158
▓ Parent-Company-Only Condensed Statement of Comprehensive Income
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March
31, 2021
2016
2017
2018
2019
2020
Analysis
Net sales revenue
725,653,095
841,309,602
911,050,122
916,280,028 991,279,270
Gross profit
21,281,171
21,544,440
21,880,841
24,848,256
23,218,044
Net operating income
5,972,854
5,170,549
6,936,706
8,536,952
6,079,726
Non-operating income
and expense
3,398,892
1,508,171
3,021,610
(713,273)
4,347,551
Net income before taxes
9,371,746
6,678,720
9,958,316
7,823,679
10,427,277
Net income from
continuing operations
Net loss from
discounting operations
8,130,890
5,749,525
8,913,365
6,955,899
9,361,893
-
-
-
-
N.A.
-
Net income (loss)
8,130,890
5,749,525
8,913,365
6,955,899
9,361,893
Income (loss) from other
comprehensive income
(net after tax)
(1,214,328)
(4,559,707)
364,822
(1,499,391)
(3,278,351)
Comprehensive income
6,916,562
1,189,818
9,278,187
5,456,508
6,083,542
Earnings per share(unit:
dollar)
1.88
1.32
2.05
1.60
2.15
Note: 1.The financial information is audited and reviewed by the CPA every year.
▓ Auditors’ Opinions
Year
2016
2017
2018
2019
2020
Accounting Firm
CPA
Audit Opinion
KPMG
KPMG
KPMG
KPMG
KPMG
Kuo, Kuan Ying; Au, Yiu Kwan
Kuo, Kuan Ying; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
159
6.2 Five-Year Financial Analysis
▓
Consolidated Financial Analysis
Analysis
Year
Financial Analysis for the Last Five Years
As of
March 31,
2021
Debt ratio
67.64
70.09
71.70
70.01
75.16
75.04
2016
2017
2018
2019
2020
Capital Structure (%)
Long term fund to property, plants, and
equipment ratio
Current ratio (%)
Liquidity analysis
Quick ratio (%)
Operating
Performance
Analysis
Interest coverage
Accounts receivable turnover (times)
Average collection turnover
Inventory turnover (times)
Accounts payable turnover (times)
Average inventory turnover days
Property, plant and equipment turnover
(times)
Total assets turnover(times)
Return on total assets (%)
Return on equity (%)
657.59
722.80
615.07
635.02
594.97 538.01
143.60
120.22
138.72
132.29
108.19
103.06
134.14
102.94
13.47
4.50
81.11
15.51
5.68
23.53
7.25
5.03
72.56
14.55
6.30
5.47
5.08
71.85
12.61
6.33
25.08
28.95
4.67
4.96
73.58
12.01
6.34
30.39
126.51 125.69
97.39 96.52
12.42 14.53
4.95
4.82
73.73 75.73
11.61 11.10
5.89
5.46
31.43 32.88
33.88
45.36
50.14
48.55
49.88 47.34
2.27
2.87
8.08
2.49
2.01
5.57
2.54
3.08
8.65
2.51
2.57
6.93
2.47
2.67
9.02
Profitability Analysis
Operating income to paid-in capital ratio (%)
26.70
18.36
26.75
22.71
29.78
Net margin (%)
Earnings per share (dollar)
Cash flow ratio (%)
Cash flow
Cash flow adequacy ratio (%)
Cash reinvestment ratio (%)
Leverage
Operating leverage
Financial leverage
Note: 1. The ratio is negative.
1.16
1.88
0.61
0.69
1.32
0.99
2.05
(Note1)
(Note1)
42.42
(Note1)
48.05
(Note1)
1.57
1.09
1.63
1.16
44.84
(Not1)
1.60
1.40
0.81
1.60
8.18
37.92
9.89
1.61
1.35
0.99
2.15
4.25
35.94
5.48
1.54
1.11
2.36
0.68
2.55
8.32
1.08
0.60
-
-
-
-
-
2. The financial ratio has changed by up to 20% in the past two years:
‧Interest coverage: Mainly due to the decrease in interest expenses and increase in profit compared to the
earlier period.
‧Return on equity、Operating income to paid-in capital ratio、Net margin、Earnings per share : Mainly
due to the increase in net income compared to the earlier period.
‧Cash flow ratio: Mainly due to decrease in net cash inflow in operating activities.
‧Cash reinvestment ratio: Mainly due to the decrease in net cash inflow in operating activities and the
increase in property, plant, and equipment.
3. The financial information is audited and certified by the CPA every year. The financial information as of March
31, 20201 has been reviewed by the CPA.
160
▓ Formula
Financial Structure
1.
(1) Debt Ratio = Total liabilities/Total assets
(2) Ratio of long-term capital to property, plants, and equipment = (Net shareholders’ equity + Long-term
liability)/Net property, plants, and equipment
Solvency
2.
(1) Current ratio = Current Assets/Current liability
(2) Quick ratio = (Current assets - Inventory - Prepaid expenses)/Current liability
(3)
Interest coverage ratio = Net income before income tax and interest expense/Interest expense
3. Operating Efficiency
(1) Accounts receivable (including accounts receivable and notes receivable from business activities) turnover
= Net sales/Average accounts receivable balance (including accounts receivable and notes receivable from
business activities)
Inventory turnover = Cost of Goods Sold/Average inventory balance
(2) A/R turnover days = 365/accounts receivable turnover
(3)
(4) Accounts payable (including accounts payable and notes payable from business activities) turnover = Cost of
goods sold/Average accounts payable balance (including accounts payable and notes payable from business
activities)
Inventory turnover days = 365/Inventory turnover
(5)
(6) Property, plants, and equipment turnover = Net sales/Average Net Property, plants, and equipment
(7) Total assets turnover = Net sales/Average Total assets
4. Profitability
(1) Return on assets = [PAT + Interest expense × (1 - interest rate)]/average asset balance
(2) Return on equity = PAT/average net equity
(3) Pre-tax income to paid-in capital = Net income before taxes/Issued capital stock
(4) Net profit ratio = PAT/Net sates
(5) EPS = (PAT - preferred stock dividends)/weighted average outstanding shares
5. Cash Flow
(1) Cash flow ratio = Cash flow from operating activities/Current liability
(2) Cash flow adequacy ratio = Most recent 5-year Cash flow from operating activities/Most recent
5-year (Capital expenditure + increases in inventory + cash dividend)
(3) Cash reinvestment ratio = (Cash flow from operating activities - cash dividend)/(Gross fixed assets + long-term
investment + other assets + working capital)
Leverage
6.
(1) Operating leverage = (Nest revenue - variable cost of goods sold and operating expense)/operating income
(2) Financial leverage = Operating income/(Operating income - interest expenses)
▓ The preceding formula for calculating the earnings per share must pay attention to the following:
1. Based on the weighted average number of ordinary shares rather than on the number of shares that
have been issued at the end of the year.
161
2. Those who have cash replenishment or treasury shares must consider the circulation period and
calculate the weighted average number of shares.
3. Where there is a surplus to increase capital or capital surplus to increase capital, the proportion of
capital increase must be retrospectively adjusted when calculating the earnings per share for the previous
annual and semi-annual periods, and there is no need to consider the capital increase issuance period.
4. If the preferred stock is a non-convertible accumulative preferred stock, its annual dividends (whether
issued or not) must be subtracted from the net profit after tax, or the net loss after tax must be added. If
the preferred stock is non-cumulative and in the case of net profit after tax, the preferred stock dividends
must be deducted from the net profit after tax. If it is a loss, no adjustment is required.
▓ When measuring cash flow, special attention should be paid to the following items:
1. The net cash flow from operating activities refers to the net cash inflow from operating activities in the
cash flow statement.
2. Capital expenditure refers to the number of cash outflows of capital investment per year.
3. The increase in inventories is only included when the ending balance is greater than the opening
balance. If the inventory at the end of the year decreases, it is calculated as zero.
4. The cash dividends include cash dividends from ordinary stocks and preferred stocks.
5. The gross value of property, plant, and equipment refers to the total amount of real property, plant, and
equipment before depreciation.
▓ According to their nature, the issuer shall classify the various operating costs and operating expenses
into fixed and variable terms. If there is any estimation or subjective judgment, the issuer must pay
attention to rationality and maintain consistency.
▓ If the Company’s shares are those without par value or at par value of NT$10 per share, the former
calculation for the ratio of paid-in capital shall be calculated based on the equity ratio attributable to the
owner of the parent company in the balance sheet.
162
▓
Parent-Company-Only Financial Analysis
Year
Financial Analysis for the Last Five Years
As of
March 31,
2021
Analysis
Capital Structure
(%)
Debt ratio
Long term fund to property, plants,
and equipment ratio
Current ratio (%)
Liquidity analysis
Quick ratio (%)
Operating
Performance
Analysis
Interest coverage
Accounts receivable turnover (times)
Average collection turnover
Inventory turnover (times)
Accounts payable turnover (times)
Average inventory turnover days
property, plants, and equipment
turnover (times)
Total assets turnover(times)
Return on total assets (%)
Return on equity (%)
Profitability
Operating income to paid-in capital
Analysis
ratio (%)
Net margin (%)
Earnings per share (dollar)
Cash flow ratio (%)
2016
2017
2018
2019
2020
67.80
68.94
70.29
68.63
72.53
6,146.71 5,955.44 5,541.36
4,461.19 4,625.34
120.17
118.27
111.56
111.16
110.40
105.89
96.92
89.79
88.45
89.44
14.03
4.61
7.85
5.06
6.14
5.08
4.97
15.81
4.97
4.87
79.14
72.13
71.80
73.46
75.01
26.42
23.11
18.82
17.55
18.29
5.16
5.65
5.95
5.86
5.73
13.81
15.79
19.39
20.79
19.95
336.43
398.31
431.73
385.90
379.40
N.A.
2.32
2.79
7.76
2.56
2.00
5.54
2.66
3.06
8.59
2.64
2.46
6.57
2.73
2.73
8.80
21.18
15.11
22.60
17.75
23.66
1.12
1.88
0.68
1.32
0.98
2.05
0.76
1.60
0.94
2.15
3.15
(Note1)
(Note1)
6.80
(Note1)
Cash flow
Cash flow adequacy ratio (%)
38.20
11.48
5.45
(Note1)
(Note1)
Cash reinvestment ratio (%)
0.68
(Note1)
(Note1)
8.29
(Note1)
Leverage
Operating leverage
Financial leverage
Note: 1.The ratio is negative.
2.74
1.14
2.86
1.23
2.59
1.39
2.43
1.30
3.17
1.13
2. The financial ratio has changed by up to 20% in the past two years:
˙Interest coverage：Mainly due to the decrease in interest expenses compared to the earlier period.
˙Return on equity：Mainly due to the increase in net income compared to the earlier period.
˙Operating income to paid-in capital ratio：Mainly due to the increase in net income before taxes compared
to the earlier period.
˙Net margin：Mainly due to the increase in net income compared to the earlier period.
˙Earnings per share：Mainly due to the increase in net income compared to the earlier period.
˙Operating leverage：Mainly due to the increase in net sales revenue compared to the earlier period.
˙Cash flow ratio：Mainly due to net cash outflow in operating activities.
˙Cash reinvestment ratio：Mainly due to net cash outflow in operating activities.
3. The financial information is audited and certified by the CPA every year.
163
▓ Formula
Financial Structure
1.
(1) Debt Ratio = Total liabilities/Total assets
(2) Ratio of long-term capital to property, plants, and equipment = (Net shareholders’ equity + Long-term
liability)/Net property, plants, and equipment
Solvency
2.
(1) Current ratio = Current Assets/Current liability
(2) Quick ratio = (Current assets - Inventory - Prepaid expenses)/Current liability
(3)
Interest coverage ratio = Net income before income tax and interest expense/Interest expense
3. Operating Efficiency
(1) Accounts receivable (including accounts receivable and notes receivable from business activities) turnover
= Net sales/Average accounts receivable balance (including accounts receivable and notes receivable from
business activities)
Inventory turnover = Cost of Goods Sold/Average inventory balance
(2) A/R turnover days = 365/accounts receivable turnover
(3)
(4) Accounts payable (including accounts payable and notes payable from business activities) turnover = Cost of
goods sold/Average accounts payable balance (including accounts payable and notes payable from business
activities)
Inventory turnover days = 365/Inventory turnover
(5)
(6) Property, plants, and equipment turnover = Net sales/Average Net Property, plants, and equipment
(7) Total assets turnover = Net sales/Average Total assets
4. Profitability
(1) Return on assets = [PAT + Interest expense × (1 - interest rate)]/average asset balance
(2) Return on equity = PAT/average net equity
(3) Pre-tax income to paid-in capital = Net income before taxes/Issued capital stock
(4) Net profit ratio = PAT/Net sates
(5) EPS = (PAT - preferred stock dividends)/weighted average outstanding shares
5. Cash Flow
(1) Cash flow ratio = Cash flow from operating activities/Current liability
(2) Cash flow adequacy ratio = Most recent 5-year Cash flow from operating activities/Most recent
5-year (Capital expenditure + increases in inventory + cash dividend)
(3) Cash reinvestment ratio = (Cash flow from operating activities - cash dividend)/(Gross fixed assets + long-term
investment + other assets + working capital)
Leverage
6.
(1) Operating leverage = (Nest revenue - variable cost of goods sold and operating expense)/operating income
(2) Financial leverage = Operating income/(Operating income - interest expenses)
▓ The preceding formula for calculating the earnings per share must pay attention to the following:
1. Based on the weighted average number of ordinary shares rather than on the number of shares that
have been issued at the end of the year.
164
2. Those who have cash replenishment or treasury shares must consider the circulation period and
calculate the weighted average number of shares.
3. Where there is a surplus to increase capital or capital surplus to increase capital, the proportion of
capital increase must be retrospectively adjusted when calculating the earnings per share for the previous
annual and semi-annual periods. There is no need to consider the capital increase issuance period.
4. If the preferred stock is a non-convertible accumulative preferred stock, its annual dividends (whether
issued or not) must be subtracted from the net profit after tax, or the net loss after tax must be added. If
the preferred stock is non-cumulative and in the case of net profit after tax, the preferred stock dividends
must be deducted from the net profit after tax. If it is a loss, no adjustment is required.
▓ When measuring cash flow, special attention should be paid to the following items:
1. The net cash flow from operating activities refers to the net cash inflow from operating activities in the
cash flow statement.
2. Capital expenditure refers to the number of cash outflows of capital investment per year.
3. The increase in inventories is only included when the ending balance is greater than the opening
balance. If the inventory at the end of the year decreases, it is calculated as zero.
4. The cash dividends include cash dividends from ordinary stocks and preferred stocks.
5. The gross value of property, plant, and equipment refers to the total amount of real property, plant, and
equipment before depreciation.
▓ The issuer shall classify the various operating costs and operating expenses into fixed and variable
terms according to their nature. If there is any estimation or subjective judgment, the issuer must pay
attention to rationality and maintain consistency.
▓ If the Company’s shares are those without par value or at par value of NT$10 per share, the former
calculation for the ratio of paid-in capital shall be calculated based on the equity ratio attributable to the
owner of the parent company in the balance sheet.
165
6.3
Audit Committee’s Report for the Most Recent Year
Audit Committee’s Review Report
The Company’s 2020 financial statements、business report and proposal for distribution of
earnings have been approved by the Audit Committee and by the Board of Directors. Szu-
Chuan Chien and Yiu-Kwan Au, certified public accountants of KPMG, have completed the
audit of the 2020 financial statements and issued an audit report relating thereto.
According to Article 14-4 of the Securities and Exchange Act and Article 219 of Company Law,
we hereby submit this report.
Compal Electronics, Inc.
Chairman of the Audit Committee:
March 26, 2021
166
6.4
Consolidated Financial Statements and Independent Auditors’ Report
Please refer to Attachment I.
6.5
Parent-Company-Only Financial Statements and Independent Auditors’ Report
Please refer to Attachment II.
Status of Financial Difficulties for the Company and its Subsidiaries
6.6
Incidence of financial difficulties for the Company and subsidiaries between the periods of 2020 to the
publication date of this annual report: None.
167
VII. Review of Financial Conditions, Financial Performance, and Risk
Management
7.1
Analysis of Financial Status
Analysis
Year
2020
2019
Unit: TWD Thousands
Difference
Amount
%
Current Assets
Investments accounted for using
equity method
Property, plant and equipment
Other Assets
Total Assets
Current Liabilities
Other Liabilities
Total Liabilities
Ordinary Share
Capital surplus
Retained Earnings
Other Equity Interests
Treasury stock
Non-controlling Equity
424,460,635
7,949,925
22,085,340
12,429,798
466,925,698
335,524,716
15,411,332
350,936,048
44,071,466
8,342,813
62,566,181
(7,266,708)
(881,247)
9,157,145
343,154,813
7,319,086
19,972,347
12,202,173
382,648,419
255,820,033
12,069,042
267,889,075
44,071,466
9,159,259
57,726,604
(4,103,449)
(881,247)
8,786,711
114,759,344
81,305,822
630,839
2,112,993
227,625
84,277,279
79,704,683
3,342,290
83,046,973
-
(816,446)
4,839,577
(3,163,259)
-
370,434
1,230,306
23.69
8.62
10.58
1.87
22.02
31.16
27.69
31.00
-
(8.91)
8.38
77.09
-
4.22
1.07
Total Equity
Note: Analysis of variations exceeding 20% and amounting to more than NTD10 million:
115,989,650
Increase in current assets: Mainly due to the business grow so the inventory and notes receivables and accounts
increased.
Increase in total assets: Mainly due to the increase in current assets such as inventory and notes receivables and
accounts.
Increase in current liabilities: Mainly due to the increase in the notes and accounts payables resulted from the
business growth.
Increase in non-current liabilities: Mainly due to the increase in the Long term loans.
Increase in total liabilities: Mainly due to the increase in current liabilities such as notes and accounts payables.
Decrease in other equity interests: Mainly due to the increase of losses of exchange differences on transition of
foreign financial statements.
Effect of changes on the Company’s financial position and Future response actions:
Judging from the aforementioned causes, the effect from changes on the Company’s financial position in the last
two years are normal outcomes from standard operating activities.
168
7.2 Analysis of Financial Performance
Analysis
Year
2020
2019
Unit: TWD Thousands
Difference
Amount
%
Net Sales
Cost of Sales
Gross Profit
Operating Expenses
Operating Income
Non-operating Income and Expenses
Profit Before Tax
Less: Income Tax Expense
Net Profit (loss)
Other Comprehensive Income (after
tax)
1,048,929,251
1,013,470,729
980,442,346
68,486,905
946,533,518
66,937,211
6.99
7.07
4.57
2.76
8.56
33,908,828
23,322,460
10,586,368
1,549,694
643,517
906,177
(578,492)
2,208,663
-381.80
10,007,876
2,112,157
7,895,719
3,114,840
601,047
2,513,793
31.12
28.46
31.84
35,458,522
23,965,977
11,492,545
1,630,171
13,122,716
2,713,204
10,409,512
(3,341,346)
(1,534,980)
(1,806,366)
117.68
Total Comprehensive Income
7,068,166
6,360,739
707,427
11.12
Note: Analysis of variations exceeding 20%:
Increase in non-operating income and expenses: Mainly due to the decrease in financial costs and
foreign currency exchange losses.
Increase in profit before tax: Mainly due to the increase in operating income and net non-operating
income and expenses.
Increase in income tax expenses: Mainly due to the increase in net profit.
Increase in net profit (loss): Mainly due to the increase in profit before tax.
Increase in other comprehensive income (after tax): Mainly due to the increase of losses of exchange
differences on translation of foreign financial statements and increase in unrealized losses from
investments in equity instruments measured at fair value through other comprehensive income.
■ Forecast for sales for next year and basis for the forecast. Potential impact on the Company’s finances
and sales in the future and response plan:
Forecast for sales for next year and basis for the forecast
Covid-19 pandemic caused the uncertainties in the global economic and industrial changes, however, it also
brought the changes in people’s lifestyle. More distance work and learning, online entertainment, and trading
activities also brought many new opportunities. Many industrial research institutions have predicted that the
demand for electronic products will increase in 2021 compared to 2020, expecting the macro environment
can progressively recover from the pandemic to regain stable development. Compal will capture those new
opportunities via related technologies and products development, and we stay cautiously optimistic to the
business development in 2021 and expect the continuous growth based on the 2020 achievements. Among
them, the 5G, auto electronics, and smart medical and healthcare will be the key focus in the mid- to long-
term. The related market analysis please refer to page 111~115 for “Industry Overview–current and future
industry prospects”.
Potential impact on the Company’s finances and sales in the future and response plan:
In light of the growth in operation and future investments, the Company has established relevant financial
169
strategies.
7.3 Analysis of Cash Flow
7.3.1 Cash Flow Analysis for the Current Year
Cash and Cash
Equivalents,
Beginning of Year
(1)
66,559,397
Net Cash Flow
from Operating
Activities
(2)
14,261,441
Other Cash
Inflow
(Outflow)
(3)
8,306,085
Cash Surplus
(Deficit)
(1)+(2)+(3)
89,126,923
Unit: TWD Thousands
Financing of Cash Deficit
Investment Plans
-
Financing Plans
-
Note: 1. Other Cash Inflow (Outflow) includes the Cashflow in investing activities, financing activities, and
foreign exchange impacts.
2. Analysis of the change of 2020 cash flows:
•Net cash inflow in operating activities: Mainly due to profit making and increase of net changes of assets and
liabilities from operating activities.
•Net cash outflow in investing activities: Mainly due to the purchase of property, plants, and equipment.
•Net inflow of financing activities: Mainly due to the loan increase and distribution of cash dividend.
3. Financing of cash deficits and liquidity analysis: There is no cash deficits situation.
7.3.2 Cash Flow Analysis for the Coming Year
The Company takes the prudent planning and aims to maintain the stable cash liquidity, as the cash balance in the
beginning of the year plus the net cash inflows from operating activities are adequate in meeting the Company’s
investing and financing needs.
7.4 Major Capital Expenditures
7.4.1 Major Capital Expenditures and Sources of Capital
Project
Actual or Planned
Source of Capital
Actual or Planned
Date of Completion
Total Capital
Unit: TWD Thousands
Actual or Expected
Capital Expenditure 2020
Property, plant and
equipment
Cash flow
generated from
operations and
loans
7.4.2 Expected Benefits
2020
6,878,804
6,878,804
The Company’s major capital expenditure is invested to meet the needs of business growth and capacity expansion.
Meanwhile to increase the automation equipment to enhance the production efficiency and achieve the goal of smart
manufacturing, in which to build the Company’s long-term competitiveness.
170
7.5
Investment Policy in the Last Year, Main Causes for Profits or Losses, Improvement Plans and
Investment Plans for the Coming Year
1. Investment policy
(1) Competition in the industry has accelerated and Compal is in full thrust integration mode. “Enlightened
Living and Computing with a Green Connection” is the Compal vision. Our long-term investment strategies
are to focus on products that relate to our core business, to provide the best quality in computing,
communications, consumer, cloud and connection, to provide full solutions in cost and technology, and
to put emphasis on our partner’s compliance with labor regulations, and the avoidance of human
trafficking and slavery. We also want to strengthen the core resources, through vertical integration,
diversification, and strategic investments or acquisitions as well as integration and horizontal competition.
(2) Improve post investment performance, strengthen the integration of Group resources and strategic
partnerships with investment businesses, facilitate the cooperation between the Company and invested
business, and require their full compliance with labor regulations and those against human trafficking and
slavery. Connect related customers to an information network, and form strategic alliances with other
industries. Sustain the performance of operating output in social, economic, and environmental aspects
using a high standard of specification. This includes increasing efficiency and productivity, improving the
rights of the workers, proper economic development, and environmentally friendly production in a clean
operating base. The Company fully supports investment companies with good performance to plan for
IPO to accelerate the realization of good returns on investments.
2. Main causes of profits or losses incurred on investments, and any corrective actions planned
The 2020 consolidated profits from investment using the equity method came to approximately TWD 436
million, coming mainly from the performance of ALLIED CIRCUIT CO., LTD., and Compal Precision Module Co.,
Ltd.
3. 2021 investment plans
The long-term investment plan next year will be based on the Company’s operating policy to position
ourselves as the pioneer provider of mobile device solutions and provide products, through the integration
of R&D resources and clients, of an all-in-one computer, TV, AE and enterprise servers. The Company follows
the principle of steady operation and always focuses on our core businesses. We will expand on the
foundation of our existing businesses, make some vertical integration where appropriate, and expand
horizontally into related activities, while continuing to grow our core business.
In the vertical integration of upstream and downstream businesses that are not involved in hardware
production, we will also expand the number of our developers and the proportion of software and firmware,
to increase the value of their tangible assets and bring in value from additional sales.
We expect horizontal mergers and expansions to help develop full IoT solutions for our clients which include
applications in cross-industry automation, industrial computers, security control, the healthcare industry,
cars, smart medical, smart cities, smart buildings, restaurants and retail outlets, with the primary aim of
providing new investment opportunities and challenges.
In practice, apart from achieving internal growth under the existing business framework, we also accept the
possibility of mergers, acquisitions, joint ventures, technical calibrations, and investment activities through
bilateral or multi-lateral collaboration between business entities.
The Company and affiliates will proceed with the aforementioned expansion based on the consideration of
whether the expansion can strengthen the Group’s advantage and assessment of reasonable risks. In terms
of reinvestments, we follow the above mentioned principles and set basic principles in the following three
171
directions:
(1) The vertical integration of upstream and downstream businesses to increase the proportion of self-
made parts and improve overall competitiveness.
(2) Horizontal mergers and expansion of related products and services, as well as other industries that
provide prominent synergy or growth.
(3) Develop technology which is beneficial to the Company or its affiliates, or invest in assets that provide
synergy or growth.
7.6
Analysis of Risk Management
7.6.1 Effects of Changes in Interest Rates, Foreign Exchange Rates, and Inflation on Corporate Finance,
and Future Response Measures
Net interest revenue and expense
Items
Net gain on exchange (including valuation of financial instruments)
Net revenues
Pre-tax income (Note)
Net interest revenue/expense to net revenues
Net interest revenue/expense to pre-tax income
Net exchange gains to net revenues
Net exchange gains to pre-tax income
1. Interest rate changes:
Unit: TWD Thousands; %
2020
487,042
205,787
1,048,929,251
13,122,716
0.046%
3.711%
0.020%
1.568%
According to the US Fed meeting minutes, the COVID-19 pandemic continues to weigh on the U.S. economic
activity, employment, and inflation, and poses considerable risks to the economic outlook. The Committee decided
to keep the target range for the federal funds rate at 0 to 1/4 percent and expects to maintain an accommodative
stance of monetary policy until the outcomes are achieved. With regard to the interest rate for TWD, the CBC
conducted an overall assessment of the economic and financial conditions including a global economic recovery
still faced with uncertainty, continued monetary easing and large fiscal stimuluses in major economies, mild
domestic price trends and inflation outlook of a solid economic expansion. The CBC judged that a rate hold would
help sustain prices and financial stability and foster economic growth. As of the end of 2020, the Company’s cash
balance came to approximately TWD 89.1 billion. The long and short-term bank loans came to about TWD 112.2
billion, with net interest expenses for the year at TWD 487.042 million. The amount accounted for 0.046% and
3.711% of the Company’s net sales and income before taxes respectively. The Company will continue to monitor
the change of interest rate closely and respond in a timely manner.
2. Exchange rate changes:
The Company is export-oriented. And as such, the change and movement of exchange rate have a considerable
impact on annual profit and loss. To minimize the impact on the Company’s operating profit/loss, the Company
172
mainly utilizes hedging such as forward foreign exchange contracts and swaps to minimize the risks of exchange
rate movements. The full year net exchange gains and losses, including the valuation of financial assets, came to
TWD 205.787 million, accounting for 0.020% and 1.568% of net revenue and net profit before taxes respectively.
We will take all necessary actions based on the fluctuation of the exchange rate in the future.
3. Inflation:
According to the CBC’s press reIease, the inflation is expected to rebound as import prices trend up on the back of
oil and other raw materials and surging international freight charges. Domestic consumption is also expected to
increase moderately. The Central Bank projected the CPI and core CPI annual growth rates to be 1.07% and 0.77%,
respectively, indicating a mild inflation outlook in 2021. We will continue to watch for potential impact on prices.
7.6.2 Policies, Main Causes of Profits or Losses, and Future Response Measures with Respect to High-risk,
High-leveraged Investments, Lending or Endorsement Guarantees, and Derivatives Transactions
1. The Company does not make high-risk, high-leveraged investments.
2. The Company only offers financing to its related parties, mainly providing short-term financing for their operating
needs.
3. The Company only provides endorsements and guarantees that have been negotiated between subsidiaries and
the parent company. The arrangements are covered by proper Endorsement and Guarantee Procedures.
4. The Company uses hedging strategies for assets and liabilities valued in foreign currencies. Such hedging, done
through forward foreign exchange contracts and swap trading, covers the amount of net assets and liabilities to
achieve the objective of risk aversion. The Company will continue to closely monitor changes in exchange rates
and execute timely hedging in the future.
5. In addition to prudent evaluation and control of the execution of related policies, the Company also relies on
regulations such as “Guidelines for Handling Acquisition and Disposal of Assets”, “Endorsement and Guarantee
Procedures”, “Third Party Lending Procedures”, and “Procedures for the Handling of Derivatives Trading”.
7.6.3 Future Research and Development Projects and Corresponding Budget
Other than the Company’s efforts in innovation and improvement of computers, TVs, and other peripheral
products, the Company also deems innovative research and development works as a niche for the Company’s
sustainable growth. Various R&D programs are developed and proposed by the R&D team based on their forecast
of new technologies, understand of market trends, and integration of add-on function. They also team with clients
to meet their market planning and detail product developments.
In general, the Company usually has less than a one-year product development cycle and aims to shorten the R&D
cycle year after year. The IT industry is highly competitive, and the timing of product development is of vital
importance. The rapid growth of sales has made the quality, experience, and capacity of R&D a decisive factor
that will become the key as to whether the Company can achieve its business target and whether the existing
customers continue their cooperation with the Company. The 2021 R&D expenses are expected to be TWD 15.5
billion.
173
7.6.4 Effects of and Response to Changes in Policies and Regulations Relating to Corporate Finance and
Sales
The Company’s management team is paying close attention to any policies or regulations that may impact the
Company’s operations. In 2020, the Company made all the necessary responses to significant changes in
international and domestic policies and regulations, without a significant impact on Company operation.
7.6.5 Effects of and Response to Changes in Technology and the Industry Relating to Corporate Finance
and Sales
The constant arrival of new technology products to replace dated ones has changed the habits of users. This has
consequently led to the emergence of different demands, and the development of ARM and Android has also
impacted Wintel, which used to monopolize the market. Not only that, the emergence of cloud applications has
also resulted in significant changes in the traditional PC market. The rising technology trend of IoT, Artificial
Intelligence (AI), and 5G communication will also bring significant developments of industry as well as market
opportunities. To cope with these changes, the Company has expanded new businesses to its existing product
lines to embrace the latest industrial trends. As such, the Company has established its Innovation Center that is
responsible for following and studying the latest developments in market trends. Not only that, the Innovation
Center is also involved in the development of innovative products, technologies, and designs to strengthen the
Company’s research on consumer behavior and thereby provide more accurate market segregation and product
positioning to satisfy user needs. At the same time, we will also focus on boosting our innovative technology
capabilities and plans for future product and market opportunities.
7.6.6 The Impact of Changes in Corporate Image on Corporate Risk Management, and the Company’s
Response Measures
Compal has concentrated on the IT and Communications industry for many years and has firmly adhered to a
business philosophy of transcendence, sincerity, and harmony in a culture of ethics and honesty. We aim to be
the best in world-class professional design, manufacturing, and services. As we pursue business growth, we
always remember our obligations as a corporate citizen. We have strengthened corporate governance, fulfilled
corporate social responsibility, and have established a good corporate image. In recent years, the Company
business has expanded, the number of employees has increased, and our global production branches have
increased in number. We have become acutely aware of the need for periodic checks of the external environment,
a self-management system, and operational strategies for the early detection of potential corporate crises and
the need for concrete and positive response plans and corrective measures.
For many years, Compal has placed amongst the Top 500, Top 2000 businesses, and Top 2000 manufacturers in
Taiwan by Fortune, Forbes Magazine, and CommonWealth Magazine respectively. In 2020, the Company placed
within the top 6%-20% in the TWSE-listed Companies in the 6th round of “Corporate Governance Evaluation” and
the distinction of the Award in the “Taiwan Corporate Sustainability Awards” organized by the Taiwan Institute
of Sustainable Energy. These prestigious awards once again reaffirmed the Company’s corporate image. There
was no company crisis in 2020 nor was there any significant event that affected the Company image in any way.
174
7.6.7 Expected Benefits from, Risks Relating to, and Response to Merger and Acquisition Plans
In addition to continued cultivation of the existing information and communication technology (ICT) operations
and enhancement of the core profit base, we are actively seeking out upcoming industries for merger, acquisition,
joint venture, or technical collaboration, with the aim being to move into industrial computing, medical
networking, IoT networking, vehicle networking and the medical equipment market. We will maintain stable
development of existing businesses and also move ahead of the curve in other areas which have high growth
momentum.
The Company will integrate resources to increase R&D capacity, improve operational efficiency, and increase
competitiveness. We expect to benefit from synergy, have a positive impact on future shareholder equity, and
maintain adequate control of organizational integration matters and financial risks.
7.6.8 Expected Benefits from, Risks Relating to, and Response to Factory Expansion Plans: None
7.6.9 Risks Relating to and Response to Excessive Concentration of Purchasing Sources and Excessive
Customer Concentration: None
7.6.10 Effects of, Risks Relating to, and Response to Large Share Transfers or Changes in Shareholdings
by Directors, Supervisors, or Shareholders with Shareholdings of over 10%: None
7.6.11 Effects of, Risks Relating to, and Response to the Changes in Management: None
7.6.12 Litigation or Non-litigation Matters
Inventec Corporation (“Inventec”), because of its former employees joined Compal Group, submitted a complaint
to the Taiwan Taipei District Prosecutors Office asserting the Company has committed trade secret/copyright
infringement. In August 2019, the Taiwan Taipei District Prosecutors Office brought criminal charges against the
Company. In order to protect the Company’s rights and interests, the Company has retained outside counsels to
defend such litigation. Considering to the fact that whether the Company has committed the trade
secret/copyright infringement depending on whether Inventec’s former employees are convicted, the Taipei
District Court judge therefore issued a ruling and according to which the Court made a stay of the criminal
proceedings pending the determination of related criminal proceedings against those employees. Currently, the
criminal proceedings against those employees is still in progress before the court. The Company cannot make any
reasonable estimation regarding the possible impact on its business operation.
7.6.13 Other Major Risks
■
Information Security
In order to maintain the competitive advantage and valuable intellectual property, and ensure that the
information and information system for product operation are properly protected, the Compal Business Center
establishes, records, implements and maintains the Compal information security management system in
175
accordance with the requirements of ISO 27001 standard, and establish information management processes and
protection specifications in accordance with the government information security related laws and regulations to
ensure the interests of the Company, customers and employees, and maintain the competitiveness of the
Company. With the implementation of the Plan-Do-Check-Act (PDCA) management cycle, we continued to
improve our information security system and comply with customer contracts properly to ensure the information
security of the customers. Compal Electronics, Inc. had no proven complaints regarding intrusions to customer
privacy or the loss of customer data in 2020. In response to external changes and the evolving of attack techniques,
we continuously focus and invest in new information security knowledge and technologies for the effective
advanced protection and detection of new information security threats to reduce operational risks.
Compal Electronics, Inc. passed the ISO 27001:2005 information security certification in 2005, received the
“Information Security Management System ISO 27001:2005” certification issued by the certification agency
British Standards Institution (BSI) and gradually expanded the certification range while conducting regular
tracking twice a year as well as reviewing audits every three years. In 2014, the IT Center was
Included in the scope of verification in addition to the original R&D unit, and the certifications were reviewed
again and approved. In 2015, Compal passed the verification of the new version of ISO 27001:2013, and obtained
the certificate of "Information Security Management System ISO 27001:2013". In 2017 and 2020, it passed the
re-verification successively, and then it was re-verified every three years afterwards, meeting the requirements
of the new specifications.
The scope of certification includes the information headquarters and research and development for portable
computer products, all-in-one computer products, vehicle electronics, and server products. In October of 2020,
we also passed external audit reviews and gradually expanded its scope of verification to KunShan Factory,
ensuring the effective operations of the information security management systems. After the integration of the
smart device business group information security system, the Company has further enforced information security
policies, as well as executing the risk assessment of the information assets duly, and maintaining the
confidentiality, integrity and availability of important information assets.
On November 8, 2020, an office automation system anomaly occurred, which was processed in real time by our
IT staff, who returned things back to normal the next day, with no impact on product production lines. Compal
continues to strengthen the security control requirements, strengthen the Company's password policy, the
original non-reusable first three generations of old password settings adjusted to ten generations. Strengthen the
Company account identification mechanism, import two-factor authentication to enhance the security of remote
access to internal resources, eliminate illegal users access to company resources or customer information.
In order to fulfill our commitment to “sustainable operations and customer satisfaction,” the Company has
assembled an “Information Committee” to serve as the highest governing body of information security within the
Company Meeting twice a year for management reviews, and report to the Board of Directors on its
176
implementation once a year. The Committee is responsible for coordinating issues concerning information
security projects, policies, goals, and resources, and ensuring participation from all employees for the protection
of information security.
The six major information security goals are measured monthly to monitor the control measures
of information security management.
BCP recovery exercises are executed regularly to ensure the validity of the BCP plan and that it
meets the system recovery goals.
Internal and external audits are executed every six months to ensure that the management
system is followed and improved continuously.
Risk assessment is executed every six months. Risk evaluation is performed through asset values
and business processes, and risk processing measures are performed for the high-level risks
evaluated.
To boost employees’ awareness of information security, our employees are required to receive
social engineering exercises and a briefing on information security and training.
Year
Information security training
completion rate
2019
95.57 %
2020
95.55%
■ Other
International conglomerates face many risks such as regulatory compliance, business competition, localization,
and globalization. It is the responsibility of each Company employee to turn such challenges into future
opportunity. Ex ante risk identification, weekly risk assessment and prevention, and post-crisis management, have
all been added to the Company target management cycle (PDCA), key performance indicators (KPI), and control
system for internal use. Such processes allow the dedicated units responsible for these specific risks to establish
rigorous and rapid means for response and a problem-solving culture. By working through regular and
unscheduled reviews and combining education, training and a performance risk appraisal system, they can cope
with significantly different kinds of risk management based on local conditions. The Company did not face any
significant risk in 2020.
7.7 Other material issues: None.
177
VIII. Special Disclosure
8.1
Summary of Affiliated Companies (As of Dec 31, 2020)
8.1.1 Affiliated enterprises report
1. Chart
178
179
2. Backgrounds of affiliated enterprises (December 31, 2020)
Company name
Compal Electronics,
Inc.
Date of
establishment
1984.06.01
Compal
International
Holding Co., Ltd.
Compal
International
Holding (HK)
Limited
Compal Electronics
Technology
(Kunshan) Co., Ltd.
Compal
Information
(Kunshan) Co., Ltd.
Compal
Information
Technology
(Kunshan) Co., Ltd.
Compal Digital
Technology
(Kunshan) Co., Ltd.
2000.01.12
2008.08.11
2000.05.19
2003.01.07
2003.06.20
2010.03.05
Kunshan Botai
Electronics Co., Ltd.
2001.08.20
Compower Global
Service Co., Ltd.
2012.04.23
Prospect Fortune
Group Ltd.
2000.01.18
Jenpal International
Ltd.
2010.12.27
Fortune Way
Technology Corp.
2015.12.18
Just International
Ltd.
1992.08.25
Compal Display
Holding (HK)
Limited
2008.08.11
Address
Paid-up capital Main business activities or products
Unit: Thousand dollars
TWD 44,071,466 Manufacturing, processing and trading
of notebooks, computer monitors, LCD
TVs, cellphones, and electronic parts
General investments
USD 53,001
USD 74,803
General investments
USD 12,000
Production of notebooks, cellphones
and electronics
USD 12,000
Production of notebooks, tablets and
electronics
USD 24,000
Production of notebooks and
electronics
USD 20,000
Production and sale of notebooks,
cellphones and digital products
USD 1,000
Production and after-sale service of
notebooks and cellphones
RMB 2,000
Maintenance and after-sale service of
notebooks and cellphones
USD 1
General investments
USD 7,350
General investments
USD 14,900
General investments
USD 48,010
General investments
USD 62,298
General investments
No. 581 and 581-1, Ruiguang
Road, Neihu District, Taipei City
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Unit 1405-1406 Dominion
Centre 43-59 Queen’s road east,
Wanchai,Hong Kong
No. 25, Third Avenue, A Zone,
Kunshan Comprehensive Free
Trade Zone, Kunshan, Jiangsu,
China
No. 15, Third Avenue, A Zone,
Kunshan Comprehensive Free
Trade Zone, Kunshan, Jiangsu,
China
No. 58, First Avenue, A Zone,
Kunshan Comprehensive Free
Trade Zone, Kunshan, Jiangsu,
China
No.59, First Avenue, Kunshan
Economic and Technological
Development Zone, Kunshan,
Jiangsu, China
No. 1881, Liji Road, Shipai,
Bacheng Town, Kunshan City,
Jiangsu, China
Building 3, No.9, Second
Avenue, A Zone, Kunshan
Comprehensive Free Trade
Zone, Kunshan, Jiangsu, China
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Unit 1405-1406 Dominion
Centre 43-59 Queen’s road east,
Wanchai,Hong Kong
180
Date of
establishment
1995.12.25
2018.04.13
Company name
Compal Electronics
(China) Co., Ltd.
Compal Smart
Device (Chongqing)
Co.,LTD.
Compal
Optoelectronics
(Kunshan) Co., Ltd.
Compal System
Trading (Kunshan)
Co., Ltd.
Compal Investment
(Jiangsu) Co., Ltd.
2003.02.28
2007.10.24
2011.02.17
Compal Display
Electronics
(Kunshan) Co., Ltd.
Compal
International Ltd.
2011.03.30
1997.04.15
Compal Electronics
International Ltd.
1997.04.22
Smart International
Trading Ltd.
1998.09.03
Amexcom
Electronics, Inc.
Mexcom
Technologies, LLC
Mexcom
Electronics, LLC
Big Chance
International Co.,
Ltd.
Center Mind
International Co.,
Ltd.
2011.07.22
2011.07.22
2011.07.22
2011.04.01
2011.04.01
Compal Investment
(Sichuan) Co., Ltd.
Compal Electronics
(Chengdu) Co., Ltd.
2011.04.01
2011.04.02
Address
Paid-up capital Main business activities or products
USD 37,000
Manufacturing and sale of displays
RMB 60,000
USD 12,100
Development, production and sale of
communication equipment,
cellphones, computers and smart
watches, and provision of relevant
technical services
Production and sale of LCD TVs
USD 1,400
International trade and distribution of
computers and electronic components
USD 15,600
General investments
USD 15,000
Production and sale of LCD TVs
USD 500
Sale of monitors, LCD TVs and related
parts
USD 9,245
General investments
USD 1
General investments
USD 1,000
Sale and maintenance of LCD TVs
USD 1
General investments
USD 8,234
General investments
USD 90,820
General investments
USD 80,820
General investments
USD 80,820
USD 80,000
External investment and consultation
service
Development and production of
notebooks, tablets, digital products,
networking switches, wireless APs, and
auto electronics
No. 1881, Liji Road, Shipai,
Bacheng Town, Kunshan City,
Jiangsu, China
No.18-5,Baohong
Avenue,Liangjiang New
District,Chongqing,China(No.D0
5,Zone D, Airport Section of
Lianglu Cuntan Free Trade Port)
No. 1881, Liji Road, Shipai,
Bacheng Town, Kunshan City,
Jiangsu, China
No. 435 Weiye Road, Kunshan
City Development Area, Jiangsu,
China
No. 1881, Liji Road, Shipai,
Bacheng Town, Kunshan City,
Jiangsu, China
No. 1881, Liji Road, Shipai,
Bacheng Town, Kunshan City,
Jiangsu, China
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
318 N. Carson Street, #208,
Carson City, NV 89701, USA
318 N. Carson Street, #208,
Carson City, NV 89701, USA
318 N. Carson Street, #208,
Carson City, NV 89701, USA
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
No. 6, Shenglong Street, Wuhou
District, Chengdu, Sichuan
No. 88, Sec.1, ZongBao Avenue
Chengdu Hi-tech
Comprehensive Bonded
Zone,Shuangliu County,
Chengdu, Sichuan, China
181
Address
Paid-up capital Main business activities or products
No. 6, Shenglong Street, Wuhou
District, Chengdu, Sichuan
USD 800
Date of
establishment
2011.05.25
Company name
Compal
Management
(Chengdu) Co., Ltd.
Prisco International
Co., Ltd.
2011.06.02
Compal Electronics
(Chongqing) Co.,
Ltd.
2011.06.02
Core Profit Holdings
Ltd.
2012.04.02
Billion Sea Holdings
Ltd.
2012.04.02
Mithera Capital Io
LP
2019.06.01
High Shine
Industrial Corp.
2007.07.04
Intelligent Universal
Enterprise Ltd.
2007.08.02
Compal (Vietnam)
Co., Ltd.
2007.10.04
Goal Reach
Enterprises Ltd.
2007.07.03
2007.07.03
Compal
Development and
Management
(Vietnam) Co., Ltd.
Panpal Technology,
Inc.
Gempal
Technology, Inc.
Hong Ji Capital, Inc. 2004.06.28
1997.08.20
1997.10.29
Hong Jin
Investment, Inc.
2004.07.02
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
No.10-3, BaoHong Avenue,
YuBei District, ChongQing,
China (No.A03, ZoneA, Airport
Section of LiangLu CunTan Free
Trade Port Area)
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
PO Box 472, 2F, Harbour Place,
103 South Church Street,
George Town, Grand Cayman
KY1-1106, Cayman Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Ba Thien Industrial Zone, Binh
Xuyen County, Vinh Phuc
Province, Vietnam
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Ba Thien Industrial Zone, Binh
Xuyen County, Vinh Phuc
Province, Vietnam
No. 581, Ruiguang Road, Neihu
District, Taipei City
No. 581, Ruiguang Road, Neihu
District, Taipei City
No. 581, Ruiguang Road, Neihu
District, Taipei City
No. 581, Ruiguang Road, Neihu
District, Taipei City
182
USD 10,000
USD 10,000
Management consultation, training,
business information, tax advisory,
investment consultation, and
investment management
General investments
Development, production and sale of
notebooks and related components,
and provision of maintenance and
after-sale services
USD 147,000
General investments
USD 147,000
General investments
USD 5,000
General investments
USD 79,700
General investments
USD 67,000
General investments
VND 1,398,683,500 Production, development, sale and
repair of notebooks, computer
monitors, LCD TVs and electronic
components
General investments
USD 12,700
VND 216,428,500 Construction and investment of
infrastructures at Ba-Thien Industrial
Zone, Vietnam
TWD 5,000,000 General investments
TWD 900,000
General investments
TWD 1,000,000 General investments
TWD 295,000
General investments
Company name
Compalead
Eletrônica do Brasil
Indústria e
Comércio Ltda.
Compal Electronics
India Private
Limited
Compal Electronica
da
Amazonia Ltda
Arcadyan
Technology
Corporation
Arcadyan
Technology N.A.
Corp.
Arcadyan Germany
Technology GmbH
Arcadyan
Technology
Corporation Korea
Arcadyan do Brasil
Ltda.
Date of
establishment
2008.07.15
1996.05.21
2020.09.14
2003.05.09
2003.07.30
2007.04.11
2014.10.16
2015.04.24
Arcadyan
Technology Limited
Arcadyan
Technology
Australia Pty Ltd
Arcadyan
Technology
Corporation
(Russia), LLC.
Arcadyan Holding
(BVI) Corp.
2016.08.16
2017.03.28
2020.06.02
2007.03.07
Sinoprime Global
Inc.
2004.12.29
Arcadyan
Technology
(Shanghai) Corp.
Arcadyan
Technology
(Vietnam) Co., Ltd.
Arch Holding (BVI)
Corp.
2002.04.17
2019.03.26
2007.05.24
Compal Networking
(Kunshan) Co., Ltd.
2006.06.26
Zhi-Bao Technology
Inc.
2009.08.10
Address
Paid-up capital Main business activities or products
Rua Kanebo 175, Galpões C1 a
C6, e C12 Distrito Industrial,
Jundiaí, São Paulo, CEP:13213-
090, Brazil
B-4, Ecotech 1 Ext., Surajpur
Kasna Rd., Greater Noida-
201308, UP, India
Rua Javari nº 1055, LOTE 2.47,
ECV, Distrito Industrial I,
Manaus AM, CEP 69.075-110,
Brazil
8F, No. 8, Section 2, Guangfu
Road, East District, Hsinchu City
5450 Thornwood Dr, Unit J
Floor 2 San Jose CA 95123-
1222, USA
Koelner Strasse 10b D-65760
Eschborn, Germany
103-1109RM SK Ventium 166,
Gosan-ro, Gunpo-si, Gyeonggi-
do, Republic of Korea 15850
Avenida Dr. Delfim Moreira,
356-SL 202, Centro, Minas
Gerais, Santa Rita, Brazil, CEP
37540-000
183 Fraser Road, Sheffield,
S80JP, United Kingdom
37 Midlothian Street Malvern
East VIC 3145, Australia
17/2, Skakovaya street, floor 7,
room 2, Moscow, Russia,
125040
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, British Virgin Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, British Virgin Islands
4F, Block 3, No. 80 Huashen
Road, Free Economic Pilot Zone,
Shanghai, China
Ba Thien Industrial Park, Ba
Hien commune, Binh Xuyen
district, Vinh Phuc Province
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, British Virgin Islands
No. 520 Nanbang Road,
Economic and Technological
Development Zone, Kunshan,
Jiangsu, China, China
5F, No. 58, Lane 188, Ruiguang
Road, Neihu District, Taipei City
183
BRL 20,109
Production and after-sale service of
notebooks, cellphones and electronics
INR 386,000
Production and after-sale service of
cellphones
BRL 20,500
Production of notebooks and
electronics
TWD 2,084,095
USD 669
EUR 25
KRW 100,000
Research, development, production
and sale of WLAN, integrated digital
home and mobile office products
Sale of wireless networking products
Sale and technical support of wireless
networking products
Sale of wireless networking products
BRL 9,682
Sale of wireless networking products
GBP 50
AUD 50
Technical support for wireless
networking products
Sale of wireless networking products
RUB 6,200
Sale of wireless networking products
USD 69,780
General investments
USD19,050
General investments
USD 13,100
Research and sale of wireless
networking products
USD 19,000
Manufacturing of wireless products
USD 10,550
General investments
USD 12,450
Production and sale of wireless
products
TWD 349,800
General investments
Address
Paid-up capital Main business activities or products
Company name
Tatung Technology
Inc.
Date of
establishment
2008.01.21
2018.11.22
2012.12.11
Tatung Technology
of Japan Co., Ltd.
Quest International
Group Co., Ltd.
Exquisite Electronic
Co., Ltd.
Tatung Home
Appliances (Wu
Jiang) Co., Ltd.
Acbel Telecom Inc. 2004.11.29
2012.02.03
2001.02.13
Compal Broadband
Networks Inc.
2009.08.19
10F, No. 288, Section 6, Civic
Boulevard, Xinyi District, Taipei
City
1 Chome-2-18, Mita, Minato-ku,
Tokyo-to, Japan
Level 2, Lotemau Centre, Vaea
Street, Apia, Samoa.
Level 2, Lotemau Centre, Vaea
Street, Apia, Samoa.
No. 508 Youming Road, Songling
Town, Wujiang District, Suzhou,
Jiangsu, China
5F, No. 58, Lane 188, Ruiguang
Road, Neihu District, Taipei City
13F-1, No. 1, Taiyuan 1st Street,
Zhubei City, Hsinchu County
TWD 410,000
Development and sale of digital home
electronics
JPY 35,000
Sale of digital home electronics
USD 1,200
General investments
USD 1,170
General investments
USD 3,350
Production and sale of digital home
electronics
TWD 87,990
General investments
TWD 669,324
2017.01.01
Bekersveld 19, 2630 Aartselaar,
Belgium
EUR 200
2019.11.25
Het Poortgebouw Beech
Avenue 54-62 Schiphol 1119
PW the Netherlands
EUR 200
TWD 200,150
2010.12.10
2010.12.10 No. 2-1, Wenhua Rd., Hsin-chu
Industrial Park, Hukou Shiang,
Hsin-chu County 30352, Taiwan
R.O.C.
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
No.520, Nanbang Rd., Kunshan
City, Jiangsu Province, China
2010.12.14
2010.05.07
Development and sale of cable
modems, set-top boxes and
communication products
Import and export of broadband
networking products and related
components, and provision of technical
support and consultation services
Import and export of broadband
networking products and related
components, and provision of technical
support and consultation services
Manufacturing of electronic
components, computers and
peripherals
USD 46,882
General investments
USD 46,882
General investments
USD 40,000
Production touch panels and related
components
Compal Broadband
Networks Belgium
BVBA
Compal Broadband
Networks
Netherlands B.V.
Henghao
Technology Co., Ltd.
HengHao Holdings
A Co., Ltd.
HengHao Holdings
B Co., Ltd.
HengHao
Optoelectronics
Technology
(Kunshan) Co., Ltd.
Lucom Display
Technology
(Kunshan) Ltd.
Mactech Inc.
2010.11.01
No.520, Nanbang Rd., Kunshan
City, Jiangsu Province, China
USD 15,000
Production touch panels and LCD
displays
2000.05.23
Ripal Optotronics
Co, Ltd.
2013.8.26
Rayonnant
Technology Co., Ltd
Compal Rayonnant
Holdings Ltd.
2010.03.23
2011.12.02
TWD 411,458 Manufacturing of machinery and
lighting equipment, retail sale of
machinery, and international trade
Manufacturing of home appliances and
audiovisual electronics
TWD 60,000
TWD 295,000 Manufacturing and sale of computers
USD 12,500
and peripherals
General investments
No. 89, Land 36, Section 2,
Tanxing Road, Tanyang Village,
Tanzi District, Taichung City
2F, No. 256, Section 3,
Zhongzheng Road, Rende
District, Tainan City
No. 581, Ruiguang Road, Neihu
District, Taipei City
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
184
Company name
Allied Power
Holding Corp.
Date of
establishment
2005.04.07
Primetek
Enterprises Ltd.
2005.01.28
Address
Paid-up capital Main business activities or products
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Unit 06, G/F, The Lodge, 535
Canton Road, Kowloon, Hong
Kong
USD 21,151
General investments
USD 3,151
General investments
USD 18,000
General investments
2010.06.04
No.9 Tainan Road,Industry Park,
Taicang, Jiangsu, China
USD 18,000
1361 EL Camino Real, Santa
Clara, CA 95050, USA
Ul Techniczna 7, 92-518, Lodz,
Poland
ul. Brukowa 6/8/205, 91-341
Lodz, Poland
USD 100
PLN 6,804
PLN 5
Development and production of
aluminum and magnesium alloy-based
products
Marketing and after-sale of computer
monitors and notebooks
Maintenance and after-sale service of
notebooks and cellphones
Maintenance and after-sale service of
notebooks and cellphones
USD 3,000
USD 89,755
Development of notebooks and related
components, hardware and software
General investments
USD 6,427
General investments
TWD 300,000
Production and wholesaling of medical
equipment
TWD 12,750
In vitro test supplies and equipment
USD 71,900
General investments
USD 27,000
Production of cellphones and tablets
USD 5,800
Production of cellphones and tablets
USD 49,000
Production of cellphones and tablets
USD 100
General investments
One Dell Way, MSC PS2-88,
Round Rock, Texas 78682, USA
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Prins Bernhardplein 200, 1097
JB Amsterdam, the Netherlands
No.581-1, Ruiguang Rd., Neihu
Dist., Taipei City
5F, No.240, Shinshu Rd., Shin
Juang Dist., New Taipei City
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
No.68-2, Suyuan Road, Export
Processing Zone (South Area).
Jiangning Nanjing China
No.77 Gaohu Street, Jiangning
Economic and Technological
Development Zone, Nanjing,
China
No.68-2, Suyuan Road, Export
Processing Zone (South Area).
Jiangning, Nanjing, China
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
185
Rayonnant
Technology
Holdings (HK) Co.,
Ltd.
Rayonnant
Technology
(Taicang) Co., Ltd.
Bizcom Electronics,
Inc.
Compal Europe
(Poland) Sp. z o.o.
CGS Technology
(Poland)
Sp. z.o.o.
Auscom
Engineering Inc.
Flight Global
Holding Inc.
Compalead
Electronics B.V.
General Life
Biotechnology Co.,
Ltd.
Rapha Bio Ltd.
Etrade
Management Co.,
Ltd.
Compal
Communications
(Nanjing) Co., Ltd.
Compal Digital
Communications
(Nanjing) Co., Ltd.
2010.03.31
1992.04.13
2008.03.05
2020.09.15
2008.10.27
2007.08.09
2014.02.19
1999.01.16
2011.09.29
2000.07.05
2003.09.23
2004.03.26
Compal Wireless
Communications
(Nanjing) Co., Ltd.
Webtek Technology
Co., Ltd.
2006.02.13
2000.07.07
Address
Paid-up capital Main business activities or products
Company name
Forever Young
Technology Inc.
Date of
establishment
2004.11.25
Giant Rank Trading
Limited
2004.11.25
HANHELT
Communications
(Nanjing) Co., Ltd.
Compal Wise
Electronic
(Vietnam) Co., Ltd.
2009.03.11
2020.07.15
Unicom Global. Inc. 2006.03.21
Palcom
International
Corporation
Compal Electronics
(Holding) Ltd.
2006.03.22
1997.04.22
UniCore Biomedical
Co., Ltd.
Raycore Biotech
Co., Ltd.
Shennona
Corporation
HippoScreen
Neurotech Corp.
2018.01.25
2017.10.18
2018.01.10
2019.01.28
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Room 301 3rd floor 43#,
Headquarters Park,N0.70#
Phoenix Road Jiangning District,
Nanjing, China
Binh Xuyen Industrial Zone, Dao
Duc Town, Binh Xuyen
District, Vinh Phuc Province,
Vietnam
No. 581, Ruiguang Road, Neihu
District, Taipei City
8F, No. 385, Yangguang St.,
Neihu District, Taipei City
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
1F, No. 50, Section 1, Jiuzong
Road, Neihu District, Taipei city
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
1361 EL Camino Real, Santa
Clara, CA 95050, USA
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
SHENNONA CO.,
LTD.
2019.03.21
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 6,000
Aco Smartcare
Co.,Ltd.
2019.02.20
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 30,748
USD 50
General investments
USD -
Sale of cellphones
USD 2,000
Development of electronic
communication equipment
VND 46,180,000 Production and sale of cellphones,
tablets, smart watches, communication
equipments and electronics, and
provision of relevant technical services
Manufacturing and retail of computers
and electronic components
Sale of cellphones
TWD 100,000
TWD 100,000
USD 1
General investments
TWD 200,000
TWD 25,000
USD 1,100
TWD 30,000
Management consultation, leasing, and
wholesale/retail of medical equipment
Wholesaling and retailing of veterinary
drugs
Medical care IoT business
Management consultation, leasing,
wholesale/retail of Precision
Instruments and International Trade
Management consultation, leasing,
wholesale/retail of Precision
Instruments and International Trade
wholesale/retail of Computer
Software, Software Design Services,
Data Processing Services, Electrical
Machinery, Supplies Manufacturing,
wholesale/retail of Electronic
Materials, wholesale/retail of Precision
Instruments, Product Designing,
Biotechnology Services and
International Trade
3. Business activities and relationships of affiliated enterprises (December 31, 2020)
Industry
category
Investment
holding
company
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Compal International Holding Co., Ltd.
Holds investment interest in Compal International Holding (HK)
Limited, Prospect Fortune Group Ltd., Jenpal International Ltd., and
Fortune Way Technology Corp.
186
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Compal International Holding (HK)
Limited
Jenpal International Ltd.
Fortune Way Technology Corp.
Just International Ltd.
Compal Display Holding (HK) Limited
Compal Investment (Jiangsu) Co., Ltd.
Compal Electronics International Ltd.
Mexcom Technologies, LLC
Mexcom Electronics, LLC
Big Chance International Co., Ltd.
Center Mind International Co., Ltd.
Compal Investment (Sichuan) Co., Ltd.
Prisco International Co., Ltd.
Core Profit Holdings Ltd.
Billion Sea Holdings Ltd.
Mithera Capital Io LP
High Shine Industrial Corp.
Intelligent Universal Enterprise Ltd.
Goal Reach Enterprises Ltd.
Panpal Technology Corporation
Gempal Technology Co., Ltd.
Hong Ji Capital Co., Ltd.
Hong Jin Investment Co., Ltd.
Compal Rayonnant Holdings Ltd.
Allied Power Holding Corp.
Flight Global Holding Inc.
Compalead Electronics B.V.
Etrade Management Co., Ltd.
Compal Electronics (Holding) Ltd.
Arcadyan Holding (BVI) Corp.
Arch Holding (BVI) Corp.
Zhi-Bao Technology Inc.
Quest International Group Co., Ltd.
Exquisite Electronic Co., Ltd.
Acbel Telecom Inc.
Holds investment interest in Compal Electronics Technology
(Kunshan) Co., Ltd., Compal Information (Kunshan) Co., Ltd., Compal
Information Technology (Kunshan) Co., Ltd.,Compal Digital
Technology (Kunshan) Co., Ltd., Kunshan Botai Electronics Co., Ltd.,
and Compal Investment (Jiangsu, China) Co., Ltd.
General investments
General investments
Holds investment interest in Compal Display Holding (HK) Limited,
Compal International Ltd., and Compal Electronics International Ltd.
Holds investment interest in Compal Electronics (China) Co., Ltd.,
Compal Optoelectronics (Kunshan) Co., Ltd., Compal System Trading
(Kunshan) Co., Ltd., Compal Investment (Jiangsu, China) Co., Ltd., and
Compal Communications (Nanjing) Co., Ltd.
Holds investment interest in Compal Display Electronics (Kunshan)
Co., Ltd.
Holds investment interest in Smart International Trading Ltd.,
Amexcom Electronics, Inc., Mexcom Technologies, LLC, and Mexcom
Electronics, LLC
General investments
General investments
Holds investment interest in Center Mind International Co., Ltd. and
Prisco International Co., Ltd.
Holds investment interest in Compal Investment (Sichuan) Co., Ltd.
Holds investment interest in Compal Electronics (Chengdu) Co., Ltd.
and Compal Management (Chengdu) Co., Ltd.
Holds investment interest in Compal Electronics (Chongqing) Co., Ltd.
Holds investment interest in Billion Sea Holdings Ltd.
Holds investment interest in High Shine Industrial Corp. and Mithera
Capital Io LP.
General investments
Holds investment interest in Intelligent Universal Enterprise Ltd. and
Goal Reach Enterprises Ltd.
Holds investment interest in Compal (Vietnam) Co., Ltd.
Holds investment interest in Compal Development and Management
(Vietnam) Co., Ltd.
General investments
General investments
General investments
General investments
General investments
General investments
General investments
General investments
General investments
General investments
Holds investment interest in Sinoprime Global Inc., Arch Holding
(BVI) Corp., and Arcadyan Technology (Shanghai) Corp.
Holds investment interest in Compal Networking (Kunshan) Co., Ltd.
Holds investment interest in Compal Broadband Networks Inc. and
Arcadyan do Brasil Ltda.
Holds investment interest in Exquisite Electronic Co., Ltd.
Holds investment interest in Tatung Home Appliances (Wu Jiang) Co.,
Ltd.
General investments
187
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Electronic
products
wholesaling
Electronic
products
manufacturing
General investments
Rayonnant Technology Holdings (HK) Co.,
Ltd.
General investments
HengHao Holdings A Co., Ltd.
General investments
HengHao Holdings B Co., Ltd.
General investments
Primetek Enterprises Ltd.
Holds investment interest in Arcadyan Technology (Vietnam) Co., Ltd.
Sinoprime Global Inc.
General investments
Prospect Fortune Group Ltd.
General investments
Compal International Ltd.
General investments
Webtek Technology Co., Ltd.
General investments
Forever Young Technology Inc.
General investments
Smart International Trading Ltd.
International trade and distribution of computers and electronic
Compal System Trading (Kunshan) Co.,
components
Ltd.
Sale of cellphones
Giant Rank Trading Limited
Sale of cellphones
Palcom International Corporation
Sale of wireless networking products
Arcadyan Technology N.A. Corp.
Arcadyan Technology Corporation Korea Sale of wireless networking products
Sale of wireless networking products
Arcadyan do Brasil Ltda.
Sale of wireless networking products
Arcadyan Technology Australia Pty Ltd.
Development and sale of digital home electronics
Tatung Technology Inc.
Sale of digital home electronics
Tatung Technology of Japan Co., Ltd.
Sale and technical support of wireless networking products
Arcadyan Germany Technology GmbH
Sale of wireless networking products
Arcadyan Technology Corporation
(Russia), LLC.
Compal Broadband Networks Belgium
BVBA
Compal Broadband Networks
Netherlands B.V.
Aco Smartcare Co.,Ltd.
Compal Electronics, Inc.
Import and export of broadband networking products and related
components, and provision of technical support and consultation
services
Import and export of broadband networking products and related
components, and provision of technical support and consultation
services
wholesale/retail of Computer Software, Software Design Services,
Data Processing Services, Electrical Machinery, Supplies
Manufacturing, wholesale/retail of Electronic Materials,
wholesale/retail of Precision Instruments, Product Designing,
Biotechnology Services, International Trade
Manufacturing, processing and trading of notebooks, computer
monitors, LCD TVs, cellphones, and electronic parts
Production of notebooks, cellphones and electronics
Compal Electronics Technology (Kunshan)
Co., Ltd.
Compal Information (Kunshan) Co., Ltd. Production of notebooks, tablets and electronics
Compal Information Technology
(Kunshan) Co., Ltd.
Compal Digital Technology (Kunshan) Co.,
Ltd.
Kunshan Botai Electronics Co., Ltd.
Compal Electronics (China) Co., Ltd.
Compal Smart Device (Chongqing) Co.,
Ltd.
Production of notebooks and electronics
Production and after-sale service of notebooks and cellphones
Manufacturing and sale of displays
Development, production and sale of communication equipment,
cellphones, computers and smart watches, and provision of relevant
technical services
Production and sale of LCD TVs
Production and sale of notebooks, cellphones and digital products
Compal Optoelectronics (Kunshan) Co.,
Ltd.
Compal Display Electronics (Kunshan)
Co., Ltd.
Amexcom Electronics, Inc.
Production and sale of LCD TVs
Sale and maintenance of LCD TVs
188
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Compal Electronics (Chengdu) Co., Ltd.
Development and production of notebooks, tablets, digital products,
networking switches, wireless APs, and auto electronics
Compal Electronics (Chongqing) Co., Ltd. Development, production and sale of notebooks and related
Compal (Vietnam) Co., Ltd.
Compalead Eletrônica do Brasil Indústria
e Comércio Ltda.
Compal Electronica da
Amazonia Ltda
Unicom Global. Inc
Arcadyan Technology Corp.
Compal Broadband Networks Inc.
Henghao Technology Co., Ltd.
Mactech Co., Ltd.
components, and provision of maintenance and after-sale services
Production, development, sale and repair of notebooks, computer
monitors, LCD TVs and electronic components
Production and after-sale service of notebooks, cellphones and
electronics
Production of notebooks and electronics
Manufacturing and retail of computers and electronic components
Research, development, production and sale of WLAN, integrated
digital home and mobile office products
Development and sale of cable modems, set-top boxes and
communication products
Manufacturing of electronic components, computers and peripherals
Manufacturing of machinery and lighting equipment, retail sale of
machinery, and international trade
Manufacturing and sale of computers and peripherals
Production of cellphones and tablets
Production of cellphones and tablets
Production of cellphones and tablets
Rayonnant Technology Co., Ltd.
Compal Communications (Nanjing) Co.,
Ltd.
Compal Digital Communications (Nanjing)
Co., Ltd.
Compal Wireless Communications
(Nanjing) Co., Ltd.
RiPAL Optotronics Co., Ltd.
Compal Electronics India Private Limited Production and after-sale service of cellphones
Compal Networking (Kunshan) Co., Ltd.
Production and sale of wireless products
Arcadyan Technology (Vietnam) Co., Ltd. Production and sale of wireless products
Tatung Home Appliances (Wu Jiang) Co.,
Ltd.
HengHao Optoelectronics Technology
(Kunshan) CO., LTD
Rayonnant Technology (Taicang) Co., Ltd. Development and production of aluminum and magnesium alloy-
Manufacturing of home appliances and audiovisual electronics
Production touch panels and related components
Production and sale of digital home electronics
Lucom Display Technology (Kunshan) Ltd. Production touch panels and LCD displays
Compower Global Service Co., Ltd.
Compal Management (Chengdu) Co., Ltd. Management consultation, training, business information, tax
Maintenance and after-sale service of notebooks and cellphones
based products
HANHELT Communications (Nanjing) Co.,
Ltd.
Bizcom Electronics, Inc.
Compal Europe (Poland) Sp. z o.o.
CGS Technology (Poland) Sp. z.o.o.
Auscom Engineering Inc.
Arcadyan Technology (Shanghai) Corp.
Arcadyan Technology Limited
Compal Wise Electronic
(Vietnam) Co., Ltd.
Construction
and
development
Compal Development and Management
(Vietnam) Co., Ltd.
advisory, investment consultation, and investment management
Development of electronic communication equipment
Marketing and after-sale of computer monitors and notebooks
Maintenance and after-sale service of notebooks and cellphones
Maintenance and after-sale service of notebooks and cellphones
Development of notebooks and related components, hardware and
software
Research and sale of wireless networking products
Technical support for wireless networking products
Production and sale of cellphones, tablets, smart watches,
communication equipments and electronics, and provision of
relevant technical services
Construction and investment of infrastructures at Ba-Thien Industrial
Zone, Vietnam
189
Industry
category
Leasing and
management
consulting
Name of affiliated enterprise
Business relationship with other affiliated enterprises
UniCore Biomedical Co., Ltd.
HippoScreen Neurotech Corp.
Management consultation, leasing, and wholesale/retail of medical
equipment
Management consultation, leasing, wholesale/retail of Precision
Instruments and International Trade
SHENNONA CO., LTD.
Management consultation, leasing, wholesale/retail of Precision
Raycore Biotech Co., Ltd.
Instruments and International Trade
Wholesaling and retailing of veterinary drugs
General Life Biotechnology Co., Ltd.
Manufacturing and sale of medical equipment
Rapha Bio Ltd.
Sale of test instruments and supplies
Shennona Corporation
Medical care IoT business
Wholesale and
retail of
veterinary
drugs
Manufacturing
and sale of
medical
equipment
Medical care
4. Directors, supervisors, and President of affiliated enterprises
December 31, 2020 Unit: TWD Thousands; shares; %
Company name
Title
Name or name of representative
Compal Electronics,
Inc.
Chairman
Director and
President
Director
Director
Sheng-Hsiung Hsu
Jui-Tsung Chen
Binpal Investment Co., Ltd.
(Representative: Wen-Being Hsu )
Kinpo Electronics, Inc.
(Representative: Chieh-Li Hsu)
Charng-Chyi Ko
Sheng-Chieh Hsu
Yen-Chia Chou
Chung-Pin Wong
Director
Director
Director
President and
Director
Chiung-Chi Hsu
Director
Ming-Chih Chang
Director
Anthony Peter Bonadero
Director
Director
Sheng-Hua Peng
Independent Director Min-Chih Hsuan
Independent Director Duei Tsai
Independent Director Duh Kung Tsai
Representative
Representative
Director
Wen-Being Hsu
Chieh-Li Hsu
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal International Holding Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal International Holding Co., Ltd.
(Representative: Jui-Tsung Chen )
190
Compal
International
Holding Co., Ltd.
Compal
International
Holding (HK)
Limited
Director
Director
Director
Shares held
Shares (Note)
8,975,401
35,352,587
5,000,000
151,628,692
7,896,867
9,321,201
8,022,874
6.618,618
2,117,731
1,919,489
0
835,000
0
0
0
5,000,000
4,117,569
Shareholding
percentage
0.20%
0.80%
0.11%
3.44%
0.18%
0.21%
0.18%
0.15%
0.05%
0.04%
0%
0.02%
0.00%
0.00%
0.00%
0.11%
0.09%
53,001,000
100.00%
53,001,000
100.00%
74,802,500
100.00%
74,802,500
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
0
0
0.00%
0.00%
Director
Director
Director
Director
Director
Director
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Chairman
Supervisor
Supervisor
Supervisor
TWD 341,760
TWD 341,760
TWD 341,760
TWD 341,760
TWD 341,760
TWD 341,760
TWD 341,760
TWD 341,760
TWD 683,520
TWD 683,520
President
Chairman
President
Chairman
Compal Information
(Kunshan) Co., Ltd.
Compal Electronics
Technology
(Kunshan) Co., Ltd.
Compal Information
Technology
(Kunshan) Co., Ltd.
Compal International Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK) Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK) Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK) Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK) Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK) Limited
(Representative: Ming-Chih Chang)
Compal International Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Kunshan Botai Electronics Co., Ltd.
(Representative: Chung-Pin Wong)
Kunshan Botai Electronics Co., Ltd.
(Representative: Cheng-Chiang Wang)
Ming-Chih Chang
Compal International Holding Co., Ltd.
Prospect Fortune
(Representative: Sheng-Hsiung Hsu )
Group Ltd.
Compal International Holding Co., Ltd.
(Representative: Jui-Tsung Chen )
Compal Digital
Technology
(Kunshan) Co., Ltd.
Kunshan Botai
Electronics Co., Ltd.
President
Managing Director
Compower Global
Service Co., Ltd.
President
Chairman
President
Chairman
President
Director
TWD 683,520
TWD 569,600
TWD 569,600
TWD 569,600
TWD 569,600
TWD 683,520
TWD 28,480
TWD 28,480
TWD 28,480
TWD 28,480
TWD 8,711
TWD 8,711
Supervisor
Supervisor
Supervisor
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Director
Director
Director
Director
Director
0.00%
0.00%
0.00%
0.00%
1,000
1,000
0
0
0
0
191
Company name
Title
Name or name of representative
Jenpal International
Ltd.
Director
Fortune Way
Technology Corp.
Just International
Ltd.
Compal Display
Holding (HK)
Limited
Director
Director
Director
Director
Director
Director
Director
Compal Electronics
(China) Co., Ltd.
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Compal Smart
Device (Chongqing)
Co., Ltd.
Compal
Optoelectronics
(Kunshan) Co., Ltd.
Compal System
Trading (Kunshan)
Co., Ltd.
Compal Investment
(Jiangsu) Co., Ltd.
Compal International Holding Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal International Holding Co., Ltd.
(Representative: Jui-Tsung Chen )
Compal International Holding Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal International Holding Co., Ltd.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Just International Ltd.
(Representative: Sheng-Hsiung Hsu )
Just International Ltd.
(Representative: Jui-Tsung Chen )
Compal Display Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal Display Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal Display Holding (HK) Limited
(Representative: Sheng-Hua Peng)
Compal Display Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Fu-Chuan Chang
Compal Electronics (China) Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics (China) Co., Ltd.
(Representative: Chung-Pin Wong )
Compal Electronics (China) Co., Ltd.
(Representative: Sheng-Hua Peng)
Compal Electronics (China) Co., Ltd.
(Representative: Cheng-Chiang Wang)
Sheng-Hua Peng
Compal Display Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal Display Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal Display Holding (HK) Limited
(Representative: Sheng-Hua Peng)
Compal Display Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Fu-Chuan Chang
Compal Display Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal Display Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal Display Holding (HK) Limited
(Representative: Chung-Pin Wong)
Compal Display Holding (HK) Limited
(Representative: Cheng-Chiang Wang)
Ming-Chih Chang
Compal International Holding (HK) Limited
and Compal Display Holding (HK) Limited
192
Shares held
Shares (Note)
Shareholding
percentage
7,350,000
100.00%
7,350,000
100.00%
14,900,000
100.00%
14,900,000
100.00%
48,010,000
100.00%
48,010,000
100.00%
62,297,500
100.00%
62,297,500
100.00%
TWD 1,053,760
100.00%
TWD 1,053,760
100.00%
TWD 1,053,760
100.00%
TWD 1,053,760
100.00%
0
0.00%
TWD 261,342
100.00%
TWD 261,342
100.00%
TWD 261,342
100.00%
TWD 261,342
100.00%
0
0.00%
TWD 344,608
100.00%
TWD 344,608
100.00%
TWD 344,608
100.00%
TWD 344,608
100.00%
0
0.00%
TWD 39,872
100.00%
TWD 39,872
100.00%
TWD 39,872
100.00%
TWD 39,872
100.00%
0
0.00%
TWD 444,288
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Director
Compal Display
Electronics
(Kunshan) Co., Ltd.
Compal
International
Ltd.
Compal Electronics
International Ltd.
Smart International
Trading Ltd.
Director
Director
Director
Director
Director
President
Director
Director
Amexcom
Electronics, Inc.
Mexcom
Technologies, LLC
Mexcom
Electronics, LLC
Big Chance
International Co.,
Ltd.
Director
Director
Center Mind
International Co.,
Director
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK) Limited
and Compal Display Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK) Limited
and Compal Display Holding (HK) Limited
(Representative: Sheng-Hua Peng)
Compal International Holding (HK) Limited
and Compal Display Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Sheng-Hua Peng
Compal Investment (Jiangsu, China) Co.,
Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal Investment (Jiangsu, China) Co.,
Ltd.
(Representative: Jui-Tsung Chen )
Compal Investment (Jiangsu, China) Co.,
Ltd.
(Representative: Sheng-Hua Peng)
Compal Investment (Jiangsu, China) Co.,
Ltd.
(Representative: Ching-Hsiung Lu)
Sheng-Hua Peng
Just International Ltd.
(Representative: Sheng-Hsiung Hsu )
Just International Ltd.
(Representative: Jui-Tsung Chen )
Just International Ltd.
(Representative: Sheng-Hsiung Hsu )
Just International Ltd.
(Representative: Jui-Tsung Chen )
Compal Electronics International Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics International Ltd.
(Representative: Jui-Tsung Chen )
Compal Electronics International Ltd.
(Representative: Sheng-Hua Peng)
Compal Electronics International Ltd.
(Representative: Hsin-Kung Mao)
Compal Electronics International Ltd.
(Representative: Chung-Pin Wong)
Hsin-Kung Mao
Compal Electronics International Ltd.
(Representative: Hsin-Kung Mao )
Compal Electronics International Ltd.
(Representative: Hsin-Kung Mao )
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Big chance International Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
193
TWD 444,288
100.00%
TWD 444,288
100.00%
TWD 444,288
100.00%
0
0.00%
TWD 427,200
100.00%
TWD 427,200
100.00%
TWD 427,200
100.00%
TWD 427,200
100.00%
0
500,000
0.00%
100.00%
500,000
100.00%
9,245,000
100.00%
9,245,000
100.00%
1,000
1,000
100.00%
100.00%
1,000,000
100.00%
1,000,000
100.00%
1,000,000
0
TWD 28
100.00%
0.00%
100.00%
TWD 234,504
100.00%
90,820,000
100.00%
90,820,000
100.00%
80,820,000
100.00%
Company name
Title
Name or name of representative
Ltd.
Director
Compal Investment
(Sichuan) Co., Ltd.
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Director
Chairman
Director
Director
Supervisor
President
Director
Director
Compal Electronics
(Chengdu) Co., Ltd.
Compal
Management
(Chengdu) Co., Ltd.
Prisco International
Co., Ltd.
Compal Electronics
(Chongqing) Co.,
Ltd.
Core Profit Holdings
Ltd.
Billion Sea Holdings
Ltd.
Director
Director
Director
Mithera Capital Lo
LP
High Shine
Director
Big chance International Co., Ltd.
(Representative: Jui-Tsung Chen )
Center Mind International Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Center Mind International Co., Ltd.
(Representative: Jui-Tsung Chen )
Center Mind International Co., Ltd.
(Representative: Chung-Pin Wong)
Center Mind International Co., Ltd.
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal Investment (Sichuan) Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal Investment (Sichuan) Co., Ltd.
(Representative: Jui-Tsung Chen )
Compal Investment (Sichuan) Co., Ltd.
(Representative: Chung-Pin Wong)
Compal Investment (Sichuan) Co., Ltd.
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal Investment (Sichuan) Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal Investment (Sichuan) Co., Ltd.
(Representative: Jui-Tsung Chen )
Compal Investment (Sichuan) Co., Ltd.
(Representative: Chung-Pin Wong)
Compal Investment (Sichuan) Co., Ltd.
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Big chance International Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Big chance International Co., Ltd.
(Representative: Jui-Tsung Chen )
Prisco International Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Prisco International Co., Ltd.
(Representative: Jui-Tsung Chen )
Prisco International Co., Ltd.
(Representative: Chung-Pin Wong)
Prisco International Co., Ltd.
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Core Profit Holdings Ltd.
(Representative: Sheng-Hsiung Hsu )
Core Profit Holdings Ltd.
(Representative: Jui-Tsung Chen )
Billion Sea Holdings Ltd.
(Representative: David Liao )
Compal Electronics, Inc. and Billion Sea
194
Shares held
Shares (Note)
Shareholding
percentage
80,820,000
100.00%
TWD 2,301,754
100.00%
TWD 2,301,754
100.00%
TWD 2,301,754
100.00%
TWD 2,301,754
100.00%
0
0.00%
TWD 2,278,400
100.00%
TWD 2,278,400
100.00%
TWD 2,278,400
100.00%
TWD 2,278,400
100.00%
0
0.00%
TWD 22,784
100.00%
TWD 22,784
100.00%
TWD 22,784
100.00%
TWD 22,784
100.00%
0
0.00%
10,000,000
100.00%
10,000,000
100.00%
TWD 284,800
100.00%
TWD 284,800
100.00%
TWD 284,800
100.00%
TWD 284,800
100.00%
0
0.00%
147,000,000
100.00%
147,000,000
100.00%
147,000,000
100.00%
147,000,000
100.00%
TWD 142,400
99.00%
79,700,000
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
Industrial Corp.
Director
Intelligent Universal
Enterprise Ltd.
Director
Compal (Vietnam)
Co., Ltd.
Goal Reach
Enterprises Ltd.
Compal
Development and
Management
(Vietnam) Co., Ltd.
Panpal Technology
Co., Ltd.
Director
Director
Director
Director
Director
Chairman
Director
Director and
President
Supervisor
Gempal Technology
Co., Ltd.
Chairman
Hong Ji
Capital Co., Ltd.
Director and
President
Director
Supervisor
Chairman
Director and
President
Director
Supervisor
Hong Jin
Investment Co., Ltd.
Chairman
Director and
President
Director
Supervisor
President
Compalead
Eletrônica do Brasil
Indústria e
Holdings Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc. and Billion Sea
Holdings Ltd.
(Representative: Jui-Tsung Chen )
High Shine Industrial Corp.
(Representative: Sheng-Hsiung Hsu )
High Shine Industrial Corp.
(Representative: Jui-Tsung Chen )
Intelligent Universal Enterprise Ltd.
(Representative: Jui-Tsung Chen )
High Shine Industrial Corp.
(Representative: Sheng-Hsiung Hsu )
High Shine Industrial Corp.
(Representative: Jui-Tsung Chen )
Goal Reach Enterprises Ltd.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Ming-Chih Chang )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Hsiao-Li Chao
195
79,700,000
100.00%
67,000,000
100.00%
67,000,000
100.00%
TWD 1,908,160
100.00%
12,700,000
100.00%
12,700,000
100.00%
TWD 361,696
100.00%
500,000,000
100.00%
500,000,000
100.00%
500,000,000
100.00%
500,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
29,500,000
100.00%
29,500,000
100.00%
29,500,000
100.00%
29,500,000
100.00%
0
0.00%
Company name
Title
Name or name of representative
Comércio Ltda.
Compal Electronica
da Amazonia Ltda
Compal Electronics
India Private
Limited
Arcadyan
Technology Corp.
President
Hsiao-Li Chao
President
Director
Director
Chairman
Director
Director
Director
Guo-Dung Yu
UJJAWAL SINGH KATIYAR
Cheng-Chiang Wang
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Chung-Pao Liu)
Che-He Wei
Chao-Peng Tseng
Director
Director and
President
Independent Director Ying-Jen Li
Independent Director Ching-Jang Wen
Independent Director Wen-An Yang
Director
Director
President
Managers
Director
Arcadyan Technology Corp.
(Representative: Jui-Tsung Chen )
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Chao-Peng Tseng
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Managers
Nien-Che, Hsiung
Director
Director
Director
Director
Director
Chairman
Director
Chairman
Director
Chairman
Director
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Keng-Tien Lin)
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu) )
Arcadyan Technology Corp.
(Representative: Linda, Chu )
Arcadyan Technology Corp.
(Representative: Jui-Tsung Chen )
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Holding (BVI) Corp.
(Representative: Jui-Tsung Chen )
Arcadyan Holding (BVI) Corp.
(Representative: Chao-Peng Tseng)
Sinoprime Global Inc.
(Representative: Chao-Peng Tseng)
196
Arcadyan
Technology N.A.
Corp.
Arcadyan Germany
Technology GmbH
Arcadyan
Technology
Corporation Korea
Arcadyan do Brasil
Ltda.
Arcadyan
Technology Limited
Arcadyan
Technology
Australia Pty Ltd.
Arcadyan Holding
(BVI) Corp.
Sinoprime Global
Inc.
Arcadyan
Technology
(Vietnam)Co., Ltd
Shares held
Shares (Note)
Shareholding
percentage
0
0
0
0
0.00%
0.00%
0.00%
0.00%
41,304,504
19.82%
41,304,504
19.82%
41,304,504
19.82%
41,304,504
19.82%
0
157,669
0
0
0
1,000
1,000
0
500
0.00%
0.08%
0.00%
0.00%
0.00%
100.00%
100.00%
0.00%
100.00%
20,000
100.00%
964,510
99.00%
50,000
50,000
50,000
50,000
50,000
100.00%
100.00%
100.00%
100.00%
100.00%
69,780,148
100.00%
69,780,148
100.00%
19,050,000
100.00%
19,050,000
100.00%
0
100.00%
Company name
Title
Name or name of representative
Arch
Holding
(BVI) Corp.
Arcadyan
Technology
(Shanghai) Corp.
Compal Network
Information
Technology
(Kunshan) Co., Ltd.
Zhi-Bao Technology
Inc
Tatung Technology
Inc.
Chairman
Director
Chairman
Director
Director
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Director
Director
Director
Arcadyan Holding (BVI) Corp.
(Representative: Jui-Tsung Chen )
Arcadyan Holding (BVI) Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Holding (BVI) Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Holding (BVI) Corp.
(Representative: Ching-Hsiung Lu)
Arcadyan Holding (BVI) Corp.
(Representative: Fong-Yu, Lu) )
Arcadyan Holding (BVI) Corp.
(Representative: Chung-Pao, Liu)
Arcadyan Holding (BVI) Corp.
(Representative: Chien-Lin Chen )
Arcadyan Holding (BVI) Corp.
(Representative: Shih-Wei Huang)
Chung-Pao, Liu
Arch Holding (BVI) Corp.
(Representative: Fong-Yu, Lu) )
Arch Holding (BVI) Corp.
(Representative: Jui-Tsung Chen )
Arch Holding (BVI) Corp.
(Representative: Chao-Peng Tseng)
Arch Holding (BVI) Corp.
(Representative: Ching-Hsiung Lu)
Chung-Pao, Liu
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Cheng-Chiang Wang)
Arcadyan Technology Corp.
(Representative: Ching-Hsiung Lu)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu) )
Arcadyan Technology Corp.
(Representative: Shih-Wei Huang)
Chao-Peng Tseng
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu) )
Arcadyan Technology Corp.
(Representative: Chien-Lin Chen)
Arcadyan Technology Corp.
(Representative: Nien-Che, Hsiung)
Arcadyan Technology Corp.
(Representative: Li-Wei Dang)
Shang Chi Investment Co., Ltd.
(Representative: Chia-Tien Lin )
Chunghwa Investment Holding Company
(Representative: Chih-Chen Chien)
Supervisor
Supervisor
Shih-Wei Huang
Yi-Yu Liang
197
Shares held
Shares (Note)
34,900
34,900
Shareholding
percentage
100.00%
100.00%
TWD 373,088
100.00%
TWD 373,088
100.00%
TWD 373,088
100.00%
TWD 373,088
100.00%
TWD 373,088
100.00%
TWD 373,088
100.00%
0
0.00%
TWD 354,576
100.00%
TWD 354,576
100.00%
TWD 354,576
100.00%
TWD 354,576
100.00%
0
34,980,000
0.00%
100.00%
34,980,000
100.00%
34,980,000
100.00%
34,980,000
100.00%
34,980,000
100.00%
0
25,027,910
0.00%
61.04%
25,027,910
61.04%
25,027,910
61.04%
25,027,910
61.04%
25,027,910
61.04%
1,027,056
2.51%
4,570,830
11.15%
0
0
0.00%
0.00%
Company name
Title
Name or name of representative
Tatung Technology
of Japan Co., Ltd.
Supervisor
President
Director
Director
Quest International
Group Co., Ltd.
Director
Director
Exquisite Electronic
Co., Ltd.
Director
Tatung Home
Appliances (Wu
Jiang) Co., Ltd.
Director
Chairman
Director
Director
Supervisor
President
Acbel Telecom Inc. Chairman
Director
Director
Supervisor
President
Chi Sheng Investment Co., Ltd.
(Representative: Chang-Chuan Lin)
Li-Wei Dang
Tatung Technology Inc.
(Representative: Li-Wei Dang)
Tatung Technology Inc.
(Representative: Chao-Peng Tseng)
Tatung Technology Inc.
(Representative: Chao-Peng Tseng)
Tatung Technology Inc.
(Representative: Li-Wei Dang)
Quest International Group Co., Ltd.
(Representative: Chao-Peng Tseng)
Quest International Group Co., Ltd.
(Representative: Li-Wei Dang)
Exquisite Electronic Co., Ltd.
(Representative: Fong-Yu, Lu) )
Exquisite Electronic Co., Ltd.
(Representative: Chao-Peng Tseng)
Exquisite Electronic Co., Ltd.
(Representative: Li-Wei Dang)
Exquisite Electronic Co., Ltd.
(Representative: Shih-Wei Huang)
Li-Wei Dang
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu) )
AcBel Polytech Inc.
(Representative: Chieh-Li Hsu)
Shih-Wei Huang
Fong-Yu, Lu
Arcadyan
Technology
Corporation
(Russia), LLC.
Compal Broadband
Networks Inc.
Compal Broadband
Networks Belgium
BVBA
Compal Broadband
Networks
Managers
Isakova Nadezhda Pavlovna
Chairman
Director
Director
Director
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Realsun Investment Co., Ltd
(Representative: Tsai , Jon-Jinn )
Compal Electronics, Inc.
(Representative: Yu- Ho Wang)
Independent Director Wong, Jen-Zen
Independent Director Mao, Yin-Wen
Independent Director Chen, Miao- Ling
President
Director
Yu- Ho Wang
Compal Broadband Networks Inc.
(Representative: Yu- Ho Wang)
Shares held
Shares (Note)
Shareholding
percentage
2,727,272
1,062,935
700
700
6.65%
2.59%
100.00%
100.00%
1,200,000
100.00%
1,200,000
100.00%
1,170,000
100.00%
1,170,000
100.00%
TWD 95,408
100.00%
TWD 95,408
100.00%
TWD 95,408
100.00%
TWD 95,408
100.00%
0
4,494,111
4,494,111
4,292,216
0
0
0
0.00%
51.08%
51.08%
48.78%
0.00%
0.00%
100.00%
29,060,176
43.42%
29,060,176
43.42%
3,575,000
5.34%
29,060,176
43.42%
0
0
0
1,086,810
0.00%
0.00%
0.00%
1.62%
20,300
100.00%
Director
Compal Broadband Networks Inc.
(Representative: Shao- Yang Chiu )
20,300
100.00%
198
Company name
Title
Name or name of representative
Netherlands B.V.
Henghao
Technology Co.,Ltd.
HengHao Holdings
A Co., Ltd.
HengHao Holdings
B Co., Ltd.
HengHao
Optoelectronics
Technology
(Kunshan) CO., LTD
Lucom Display
Technology
(Kunshan) Ltd.
Mactech Inc.
Rayonnant
Technology Co., Ltd.
Chairman
Vice Chairman
and President
Director
Director
Supervisor
Director
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Director
Director
Director
Supervisor
Chairman
Director and
President
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Chen-Chang Hsu)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Henghao Technology Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Henghao Technology Co., Ltd.
(Representative: Chung-Pin Wong)
HengHao Holdings A Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
HengHao Holdings A Co., Ltd.
(Representative: Chung-Pin Wong)
HengHao Holdings B Co., Ltd.
(Representative: Chen-Chang Hsu)
HengHao Holdings B Co., Ltd.
(Representative: Chia-Tien Liu)
HengHao Holdings B Co., Ltd.
(Representative: Jui-Hsiang Yang)
HengHao Holdings B Co., Ltd.
(Representative: Cheng-Chiang Wang)
Chen-Chang Hsu
HengHao Holdings B Co., Ltd.
(Representative: Chen-Chang Hsu)
HengHao Holdings B Co., Ltd.
(Representative: Chia-Tien Liu )
HengHao Holdings B Co., Ltd.
(Representative: Jui-Hsiang Yang )
HengHao Holdings B Co., Ltd.
(Representative: Hsiu-Chuan Hsu)
Chen-Chang Hsu
Compal Electronics, Inc.
(Representative: Yung-Ching Chang)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Chen-Chang Hsu)
Compal Electronics, Inc.
(Representative: Ming-Chih Chang)
Wen-Pin Kuo
Chuan-Kuei Lin
Chyou-Jui Wei
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Pao-Jui Cheng)
199
Shares held
Shares (Note)
Shareholding
percentage
20,014,952
100.00%
20,014,952
100.00%
20,014,952
100.00%
20,014,952
100.00%
20,014,952
46,882,000
46,882,000
46,882,000
46,882,000
100.00%
100.00%
100.00%
100.00%
100.00%
TWD 1,139,200
100.00%
TWD 1,139,200
100.00%
TWD 1,139,200
100.00%
TWD 1,139,200
100.00%
0
TWD 427,200
TWD 427,200
TWD 427,200
TWD 427,200
0
21,756,192
0.00%
100.00%
100.00%
100.00%
100.00%
0.00%
52.88%
21,756,192
52.88%
21,756,192
52.88%
21,756,192
52.88%
21,756,192
52.88%
1,301,505
1,609,172
0
3.16%
3.91%
0.00%
29,500,000
100.00%
29,500,000
100.00%
Company name
Title
Name or name of representative
Director
Supervisor
Director
Director
Director
Director
Director
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Director
Director
Director
Director
Director
Compal Rayonnant
Holdings Ltd.
Allied Power
Holding Corp.
Primetek
Enterprises Ltd.
Rayonnant
Technology
Holdings (HK) Co.,
Ltd.
Rayonnant
Technology
(Taicang) Co., Ltd.
Bizcom Electronics,
Inc.
Compal Europe
(Poland) Sp. z o.o.
CGS Technology
(Poland)
Sp. z.o.o.
Auscom
Engineering Inc.
Chairman
Director and
President
Director
Compal Electronics, Inc.
(Representative: Hsi-Kuan Chen)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Rayonnant Holdings Ltd.
(Representative: Chung-Pin Wong)
Rayonnant Technology Co., Ltd.
(Representative: Pao-Jui Cheng)
Allied Power Holding Corp.
(Representative: Chung-Pin Wong)
Allied Power Holding Corp.
(Representative: Pao-Jui Cheng)
Allied Power Holding Corp.
(Representative: Chyou-Jui Wei)
Allied Power Holding Corp.
(Representative: Pao-Jui Cheng)
Rayonnant Technology Holdings (HK) Co.,
Ltd.
(Representative: Pao-Jui Cheng)
Rayonnant Technology Holdings (HK) Co.,
Ltd
(Representative: Cheng-Chiang Wang).
Rayonnant Technology Holdings (HK) Co.,
Ltd.
(Representative: Hsi-Kuan Chen)
Rayonnant Technology Holdings (HK) Co.,
Ltd.
(Representative: Chyou-Jui Wei)
Pao-Jui Cheng
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Po-Tang Wang )
Compal Electronics, Inc.
(Representative: Po-Tang Wang )
Compal Electronics, Inc.
(Representative: Ming-Chih Chang)
Compal Electronics, Inc.
(Representative: Ming-Chih Chang)
Compal Electronics, Inc.
(Representative: Po-Tang Wang )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Min-Tung Weng)
Compal Electronics, Inc.
200
Shares held
Shares (Note)
Shareholding
percentage
29,500,000
100.00%
29,500,000
100.00%
12,500,000
100.00%
12,500,000
100.00%
12,500,000
59.10%
8,651,000
40.90%
3,151,000
100.00%
3,151,000
100.00%
18,000,000
100.00%
18,000,000
100.00%
TWD 512,640
100.00%
TWD 512,640
100.00%
TWD 512,640
100.00%
TWD 512,640
100.00%
0
100,000
0.00%
100.00%
100,000
100.00%
100,000
100.00%
100,000
100.00%
136,080
100.00%
136,080
100.00%
100
100
100.00%
100.00%
3,000,000
100.00%
3,000,000
3,000,000
100.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
Flight Global
Holding Inc.
Director
Director
RiPAL Optotronics
Co., Ltd.
Chairman
Compal Electronics
(Holding) Ltd.
Etrade
Management Co.,
Ltd.
Compal
Communications
(Nanjing) Co., Ltd.
Compal Digital
Communications
(Nanjing) Co., Ltd.
Compal Wireless
Communications
(Nanjing) Co., Ltd.
Director
Director
Supervisor
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Webtek Technology Director
(Representative: Chun-Te Shen)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Etrade Management Co., Ltd. and Compal
Display Holding (HK) Limited
(Representative: Sheng-Hua Peng)
Etrade Management Co., Ltd. and Compal
Display Holding (HK) Limited
(Representative: Cheng-Chiang Wang)
Etrade Management Co., Ltd. and Compal
Display Holding (HK) Limited
(Representative: Hsin-Hsiung Huang)
Etrade Management Co., Ltd. and Compal
Display Holding (HK) Limited
(Representative: Guo-Dung Yu)
Sheng-Hua Peng
Etrade Management Co., Ltd.
(Representative: Sheng-Hua Peng)
Etrade Management Co., Ltd.
(Representative: Cheng-Chiang Wang)
Etrade Management Co., Ltd.
(Representative: Hsin-Hsiung Huang)
Etrade Management Co., Ltd.
(Representative: Guo-Dung Yu)
Sheng-Hua Peng
Etrade Management Co., Ltd.
(Representative: Sheng-Hua Peng)
Etrade Management Co., Ltd.
(Representative: Cheng-Chiang Wang)
Etrade Management Co., Ltd.
(Representative: Hsin-Hsiung Huang)
Etrade Management Co., Ltd.
(Representative: Guo-Dung Yu)
Sheng-Hua Peng
Compal Electronics, Inc.
201
89,755,495
100.00%
89,755,495
100.00%
6,000,000
100.00%
6,000,000
100.00%
6,000,000
100.00%
6,000,000
100.00%
1,000
1,000
100.00%
100.00%
46,900,000
65.23%
TWD 768,960
100.00%
TWD 768,960
100.00%
TWD 768,960
100.00%
TWD 768,960
100.00%
0
0.00%
TWD 165,184
100.00%
TWD 165,184
100.00%
TWD 165,184
100.00%
TWD 165,184
100.00%
0
0.00%
TWD 1,395,520
100.00%
TWD 1,395,520
100.00%
TWD 1,395,520
100.00%
TWD 1,395,520
0
100,000
100.00%
0.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
Co., Ltd
Forever Young
Technology Inc.
HANHELT
Communications
(Nanjing) Co., Ltd.
Director
Chairman and
President
Director
Director
Supervisor
Director
Compal Wise
Electronic
(Vietnam) Co., Ltd.
Unicom Global. Inc. Chairman
Palcom
International
Corporation
Compalead
Electronics B.V.
General Life
Biotechnology Co.,
Ltd.
Rapha Bio Ltd.
Director
Director
Supervisor
Chairman
Director
Director
Supervisor
Director
Director
Chairman
Director
Director
Director
Director
Supervisor
Supervisor
Chairman
Director
Director
Supervisor
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative:Jui-Tsung Chen )
Forever Young Technology Inc.
(Representative: Sheng-Hua Peng)
Forever Young Technology Inc.
(Representative: Chung-Shing Tan)
Forever Young Technology Inc.
(Representative: Wen-Da Hsu)
Forever Young Technology Inc.
(Representative: Chiao-Lie Huang)
Forever Young Technology Inc.
(Representative：Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Hsin-Kung Mao)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
Compal Electronics, Inc.
(Representative: Guo-Dung Yu)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Hsin-Kung Mao)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Alltek Technology Corp.
(Representative: Yu-Wen Wu)
WK Technology Fund IV
(Representative: Tien-Hao Wang)
China Development Industrial Bank
Sheng-Hua Peng
General Life Biotechnology Co., Ltd.
(Representative: Chyou-Jui Wei)
General Life Biotechnology Co., Ltd.
(Representative: Cheng-Ta Chen)
General Life Biotechnology Co., Ltd.
(Representative: Tung-Pang Lin)
General Life Biotechnology Co., Ltd.
202
50,000
100.00%
TWD 56,960
100.00%
TWD 56,960
100.00%
TWD 56,960
100.00%
TWD 56,960
100.00%
TWD 56,960
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
6,426,516
100.00%
6,426,516
100.00%
15,000,000
50.00%
15,000,000
50.00%
15,000,000
50.00%
6,922,940
23.08%
992,000
2,520,000
0
1,275,000
1,275,000
1,275,000
1,275,000
3.31%
8.40%
0.00%
100.00%
100.00%
100.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
Giant Rank Trading
Limited
UniCore Biomedical
Co., Ltd.
Director
Chairman
Raycore Biotech
Co., Ltd.
Shennona
Corporation
HippoScreen
Neurotech Corp.
SHENNONA CO.,
LTD.
Aco Smartcare
Co.,Ltd.
Director
Director
Director
Director
Supervisor
Chairman
Director
Director
Supervisor
Director
Director
Director
Chairman
Director
Director
Director
Director
Supervisor
Chairman
Chairman
Director
Director
Director
Director
Supervisor
(Representative: Kuo-Hsiung Chung)
Forever Young Technology Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Tzu-Chen Yen)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Compal Electronics, Inc.
(Representative: Shu-Fen Ning)
UniCore Biomedical Co., Ltd.
(Representative:Jui-Tsung Chen)
Raypal Biomedical Co., Ltd.
(Representative: Yen-Liang Lin)
UniCore Biomedical Co., Ltd.
(Representative: Chyou-Jui Wei)
UniCore Biomedical Co., Ltd.
(Representative:Shu-Fen Ning)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Wei Chang Chen)
Compal Electronics, Inc.
.(Representative: Chun-Te Shen)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Wei Chang Chen)
Compal Electronics, Inc.
(Representative Chun-Te Shen)
Po-Jen Liu
Long-Song Lin
Cheng-Chiang Wang
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative:Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Hsuan-Bin Chen)
Jian-Hung Liu
Shu-Chin Su
Chyou-Jui Wei
-
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
1,275,000
1,225,000
1,275,000
1,275,000
51.00%
49.00%
51.00%
51.00%
2,600,000
100.00%
2,600,000
100.00%
2,600,000
100.00%
2,100,000
70.00%
2,100,000
2,100,000
342,000
90,000
0
600,000
70.00%
70.00%
11.40%
3.00%
0.00%
100.00%
100,000,000
52.04%
100,000,000
52.04%
100,000,000
22,227,778
22,227,778
0
52.04%
11.57%
11.57%
0.00%
Note: Limited liability companies are shown in terms of amount and percentage of capital contribution. (Exchange
rates for amount of capital contribution: USD 1: TWD 28.48, CNY 1: TWD 4.3557, and VND 1: TWD 0.001238.)
203
5. Overview of Operating Status for Affiliated Companies in 2020
Company Name
Capital
Net asset value
Total liabilities
Net worth
Operating
Operating
Net loss/profit for the
EPS (in TWD )
revenue
income
period (after tax)
(After tax)
Unit: TWD Thousands
Compal Electronics, Inc.
44,071,466
388,951,151
282,118,646
106,832,505
991,279,270
6,079,726
9,361,893
Compal International Holding Co.,
Ltd. and subsidiaries
Just International Ltd.
and subsidiaries
Big Chance International Co., Ltd.
and subsidiaries
1,787,680
110,222,465
74,994,142
35,228,323
448,216,021
1,948,080
2,436,470
1,460,443
39,231,680
31,497,489
7,734,191
153,181,164
74,679
(17,929)
2,636,051
32,333,632
25,871,109
6,462,523
118,880,726
562,584
279,020
Core Profit Holdings Ltd.
4,318,860
7,358,043
1,372
7,356,671
-
(3,140)
74,866
High Shine Industrial Corp.
and subsidiaries
Panpal Technology Corporation
and subsidiaries
Gempal Technology Co., Ltd.
Hong Ji Capital Co., Ltd.
Hong Jin Investment Co., Ltd.
UniCore Biomedical Co., Ltd. and
subsidiaries
2,400,574
22,717,820
21,306,422
1,411,398
28,330,329
(232,992)
(190,132)
5,000,000
10,415,557
4,860,173
5,555,384
8,729,642
274,268
900,000
1,000,000
295,000
2,123,010
1,142,320
351,374
20,535
881
66
2,102,475
1,141,439
351,308
-
-
-
(283)
(216)
(211)
8,775
138,282
110,567
38,077
200,000
148,490
10,252
138,238
16,596
(24,355)
(20,298)
Shennona Corporation
32,665
1,222
(1)
1,222
-
(84)
(84)
Arcadyan Technology Corp.
and subsidiaries
Compal Broadband Networks Inc.
and subsidiaries
Henghao Technology Co., Ltd.
and subsidiaries
2,084,095
28,807,226
16,845,230
11,961,996
33,765,295
2,283,477
1,630,605
669,324
2,746,159
1,087,003
1,659,156
2,704,414
23,065
46,723
200,150
7,599,545
7,868,798
(269,253)
11,063,444
131,243
10,001
204
2.15
45.97
(0.37)
3.07
0.51
(2.39)
0.02
1.54
1.11
1.29
(1.01)
(0.03)
8.36
0.70
0.50
Company Name
Capital
Net asset value
Total liabilities
Net worth
Mactech Co., Ltd.
411,458
Ripal Optotronics CO, LTD. Co., Ltd.
60,000
601,961
141,028
90,855
57,547
511,106
83,481
revenue
241,870
75,576
18,131
11,056
General life Biotechnology Co., Ltd.
and subsidiaries
300,000
766,409
351,147
415,262
401,547
17,145
Rayonnant Technology Holdings Ltd.,
295,000
546,233
420,914
125,319
1,436,000
16,900
377,328
1,178,656
987,637
191,019
1,643,194
136,254
Operating
Operating
Net loss/profit for the
EPS (in TWD )
income
period (after tax)
(After tax)
Compal Rayonnant Holdings Ltd. and
subsidiaries
Bizcom Electronics, Inc.
Compal Europe (Poland) Sp.z o.o.
CGS Technology (Poland) Sp.z o.o.
36,369
90,156
37
475,710
270,291
-
Auscom Engineering Inc.
101,747
185,678
Flight Global Holding Inc.
2,754,741
4,873,240
Compalead Electronics B.V.
197,463
788,338
Etrade Management Co., Ltd and
subsidiaries
Webtek Technology Co., Ltd
Forever Young Technology Inc. and
subsidiaries
Unicom Global Inc.
Palcom International Corporation
3,340
1,575
100,000
100,000
Compal Electronics (Holding) Ltd.
34
3,354,563
HippoScreen Neurotech Corp.
SHENNONA CO., LTD.
Aco Smartcare Co.,Ltd.
30,000
6,000
30,748
13,091
15,830
95,911
43,876
251,625
-
60,851
76,712
79
431,834
18,666
-
124,827
4,796,528
788,259
125,006
235,714
-
198,793
-
-
155
18,626
(37)
13,006
(177)
(982)
2,295,154
9,852,381
10,211,473
(359,092)
28,249,091
284,397
697,725
-
697,725
-
(123)
1,862,468
533,354
1,329,114
31,809
(57,217)
648,189
141,559
1,029,416
(381,227)
29,135
(2,000)
6,697
13,057
7,990
112,424
3,356,563
6,394
2,773
(15,127)
6,937
-
648,838
136,085
-
762
23,602
(1,372)
87,921
312
(36,056)
205
(26,140)
(26,086)
17,515
12,248
24,262
66,935
68,396
8,266
842
(37)
4,635
112,909
6,256
162,385
114,628
(54,135)
(22,052)
6,801
-
(1,340)
(23,856)
0.43
2.04
0.81
2.27
5.47
82.66
6.19
(370)
1.55
1.26
0.97
2.26
1,146.28
(1,082.70)
(2.21)
0.68
-
(8.70)
(2.23)
(0.12)
6. Common shareholders in controlling and controlled companies: None
8.1.2
Consolidated financial statements of affiliated enterprises
Representation Letter
The entities that are required to be included in the combined financial statements of COMPAL ELECTRONICS, INC. as of and for the year ended December 31, 2020 under the
Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those
included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 endorsed by the Financial Supervisory
Commission, "Consolidated and Separate Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the
consolidated financial statements. Consequently, COMPAL ELECTRONICS, INC. and its subsidiaries do not prepare a separate set of combined financial statements.
Company name: COMPAL ELECTRONICS, INC.
Chairman: Sheng-Hsiung Hsu (Rock Hsu)
Date: March 26, 2021
8.1.3 Affiliation reports: None
206
8.2
Private Placement of Securities in the Most Recent Year: None
8.3
Company Shares Held or Disposed by Subsidiaries in the Most Recent Year:
Name of
Share Capital
Funding
of Shares
Subsidiary
Acquired
Source
Held by the
Percentage
Panpal
Technology
Corporation
Gempal
Technology
Co., Ltd.
TWD
Proprietary
5,000,000,000
capital
TWD
Proprietary
900,000,000
capital
Company
100%
100%
Date of
Shares and
Shares and
Acquisition or
Amount
Amount
Disposition
Acquired
Disposed
Investment
Gain (Loss)
Shareholdings and
Amount as of March
Collateralized
31, 2021
Amount of
Endorsements
Made for the
Subsidiary
Amount Loaned
to the
Subsidiary
Unit: TWD thousands; Shares; %
-
-
-
-
-
-
-
-
31,648,082 shares
TWD 559,812,000
18,369,349 shares
TWD 321,435,000
N.A.
N.A.
-
-
-
-
Note: Impacts on the Company’s financial performance and position: none of the subsidiaries had acquired or disposed the Company’s shares in the current year up till the
publication date of this annual report, hence there were no impacts.
8.4
Other supplementary notes, where applicable: None
8.5
Any Events in 2020 and as of the Date of this Annual Report that had Significant Impacts on Shareholders’ Interests or Security Prices as Stated in
Item 2 Paragraph 2 of Article 36 of Securities and Exchange Law of Taiwan: None
207
Compal Electronics, Inc.
Chairman: Sheng-Hsiung Hsu (Rock Hsu)
Chief Executive Officer (CEO): Chung-Pin Wong (Martin Wong)
Attachment I
1
Stock Code:2324
COMPAL ELECTRONICS, INC.
AND SUBSIDIARIES
Consolidated Financial Statements
With Independent Auditors’ Report
For the Years Ended December 31, 2020 and 2019
Address:
Telephone: (02)8797-8588
No.581 & 581-1, Ruiguang Rd., Neihu District, Taipei, Taiwan
Table of contents
2
Contents
Page
1. Cover Page
2. Table of Contents
3. Representation Letter
4. Independent Auditors’ Report
5. Consolidated Balance Sheets
6. Consolidated Statements of Comprehensive Income
7. Consolidated Statements of Changes in Equity
8. Consolidated Statements of Cash Flows
9. Notes to the Consolidated Financial Statements
(1) Company history
(2) Approval date and procedures of the consolidated financial
statements
(3) New standards, amendments and interpretations adopted
(4) Summary of significant accounting policies
(5) Significant accounting assumptions and judgments, and major
sources of estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8) Pledged assets
(9) Commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures
1
2
3
4
5
6
7
8
9
9
9～10
10～39
39～40
40～94
94～96
97
97
97
97
97
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information
98, 102～116
98, 117～121
98, 122～124
98
98～101
Representation Letter
3
The entities that are required to be included in the combined financial statements of COMPAL ELECTRONICS,
INC. as of and for the year ended December 31, 2020 under the Criteria Governing the Preparation of
Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated
Enterprises are the same as those included in the consolidated financial statements prepared in conformity with
International Financial Reporting Standards No. 10 endorsed by the Financial Supervisory Commission,
"Consolidated and Separate Financial Statements." In addition, the information required to be disclosed in the
combined financial statements and is included in the consolidated financial statements. Consequently, COMPAL
ELECTRONICS, INC. and Subsidiaries do not prepare a separate set of combined financial statements.
Company name: COMPAL ELECTRONICS, INC.
Chairman: Sheng-Hsiung Hsu (Rock Hsu)
Date: March 26, 2021
4
Independent Auditor’s Report
To COMPAL ELECTRONICS, INC.:
Opinion
We have audited the consolidated financial statements of COMPAL ELECTRONICS, INC. and its subsidiaries
(the“Group”), which comprise the consolidated balance sheets as of December 31, 2020 and 2019, and the
consolidated statement of comprehensive income, changes in equity and cash flows for the years ended
December 31, 2020 and 2019, and notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as of December 31, 2020 and 2019, and its consolidated financial
performance and its consolidated cash flows for the years then ended December 31, 2020 and 2019, in
accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with
the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”),
Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the
former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial
Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audit of the consolidated financial statements as of and for the year ended December 31, 2020
in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified
Public Accountants, and the auditing standards generally accepted in the Republic of China. Furthermore, we
conducted our audit of the Consolidated financial statements as of and for the year ended December 31, 2019 in
accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified
Public Accountants, Rule No. 1090360805 issued by the Financial Supervisory Commission, and the auditing
standards generally accepted in the Republic of China. Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our
report. We are independent of the Group in accordance with the Certified Public Accountants Code of
Professional Ethics in Republic of China (“the Code”), and we have fulfilled our other ethical responsibilities
in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis of our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
1. Account receivable valuation
Please refer to Note (4)(g) for the accounting policy of accounts receivable. Information of account
receivable valuation are shown in Note (6)(e) of the consolidated financial statements.
4-1
Description of key audit matters:
The Group is subject to great influence of given the challenging industry climate and also devotes to develop
new product lines and new customers, and the credit risks of these customers are higher than other world
leading enterprises. Therefore, valuation of accounts receivable has been identified as a key audit matter.
Our key audit procedures performed in respect of the above area included the following:
In order to evaluate the reasonableness of the Group's estimations for bad debts, our key audit procedures
included reviewing if the measurement of impairment loss of accounts receivable is accordance with
accounting policy, examining the historical recovery records, analyzing the aging of accounts receivable, and
the current credit status of customers, as well as inspecting the amount collected in the subsequent period.
2. Inventory valuation
Please refer to Note (4)(h) and Note (5) for the accounting policy of inventory valuation, as well as the
estimation and assumption uncertainty of the valuation of inventory, respectively. Information of estimation
of the valuation of inventory are disclosed in Note (6)(f) of the consolidated financial statements.
Description of key audit matters:
The inventory is measured at the lower of cost or net realizable value. The short life cycle of electronic
products may cause significant changes in customers’ demand and sales of related products. Consequently,
the book value of inventory may be lower than the net realizable value of inventory. Therefore, the valuation
of inventory is one of the key audit matters.
Our key audit procedures performed in respect of the above area included the following:
In order to verify the rationality of assessment of inventory valuation estimated by the Group, our key audit
procedures included reviewing the consistency of prior year and accounting policy, inspecting the Group's
inventory aging reports, analyzing the change of inventory aging, as well as verifying the inventory aging
reports and the calculation of lower of cost or net realizable value.
Other Matter
Compal Electronics Inc. has prepared its parent-company-only financial statements as of and for the years ended
December 31, 2020 and 2019, on which we have issued an unqualified opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with
the IFRSs, IASs, IFRC, SIC, endorsed and issued into effect by the Financial Supervisory Commission of the
Republic of China, and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance (including the Audit committee) are responsible for overseeing the Group’s
financial reporting process.
4-2
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the auditing standards generally accepted in the Republic of China will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we
exercise professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
4-3
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors’ report are Szu-Chuan Chien and
Yiu-Kwan Au.
KPMG
Taipei, Taiwan (Republic of China)
March 26, 2021
The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position,
financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of
China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are
those generally accepted and applied in the Republic of China.
Notes to Readers
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars)
Assets
Current assets:
December 31, 2020
Amount
%
December 31, 2019
Amount
%
Cash and cash equivalents (note (6)(a))
$
89,126,923
19.1
66,559,397
17.4
Current financial assets at fair value through profit or loss (note (6)(b))
2,245,254
0.5
1,346,379
0.4
Current financial assets for hedging (note (6)(d))
Notes and accounts receivable, net (note (6)(e))
Notes and accounts receivable due from related parties, net (notes (6)(e) and (7))
Other receivables, net (notes (6)(e) and (7))
Inventories (note (6)(f))
Other current assets (note (8))
Non-current assets:
Investments accounted for using equity method (note (6)(g))
Non-current financial assets at fair value through profit or loss (note (6)(b))
Non-current financial assets at fair value through other comprehensive income (note (6)(c))
Property, plant and equipment (notes (6)(k) and (8))
Right-of-use assets (note (6)(l))
Intangible assets
Deferred tax assets (note (6)(s))
Other non-current assets (note (8))
-
-
61
-
231,830,964
49.7
191,692,152
50.1
378,934
1,628,657
0.1
0.3
44,512
-
2,006,113
0.5
96,151,959
20.6
78,433,538
20.5
3,097,944
0.6
3,072,661
0.8
424,460,635
90.9
343,154,813
89.7
7,949,925
201,608
4,817,011
22,085,340
3,496,952
1,506,101
1,514,208
893,918
42,465,063
1.7
0.1
1.0
4.7
0.8
0.3
0.3
0.2
9.1
7,319,086
1.9
115,359
-
4,928,053
19,972,347
3,350,172
1,553,342
1,637,626
617,621
1.3
5.2
0.9
0.4
0.4
0.2
39,493,606
10.3
1100
1110
1135
1170
1180
1200
1310
1470
1550
1510
1517
1600
1755
1780
1840
1990
2100
2120
2125
2130
2170
2180
2200
2230
2250
2280
2300
2365
2322
2530
2540
2570
2580
2640
2670
Liabilities and Equity
Current liabilities:
Short-term borrowings (note (6)(m))
Current financial liabilities at fair value through profit or loss (note (6)(b))
Current financial liabilities for hedging (note (6)(d))
Current contract liabilities (note (6)(w))
Notes and accounts payable
Notes and accounts payable to related parties (note (7))
Other payables (note (7))
Current tax liabilities
Current provisions (note (6)(q))
Current lease liabilities (note (6)(p))
Other current liabilities
Current refund liabilities
Long-term borrowings, current portion (note (6)(n))
Non-Current liabilities:
Bonds payable (note (6)(o))
Long-term borrowings (note (6)(n))
Deferred tax liabilities (note (6)(s))
Non-current lease liabilities (note (6)(p))
Non-current net defined benefit liability (note (6)(r))
Non-current liabilities, others (note (6)(g))
Total liabilities
Equity:
Equity attributable to owners of parent (note (6)(t)):
3110
3200
3300
3400
3500
Ordinary share
Capital surplus
Retained earnings
Other equity interest
Treasury shares
36XX
Non-controlling interests
Total equity
5
December 31, 2020
Amount
%
December 31, 2019
Amount
%
$
92,838,733
19.9
60,951,844 15.9
136,617
2,192
-
-
5,854
4,932
-
-
820,016
0.2
956,455
0.2
196,837,439
42.2
142,940,869 37.4
2,888,624
23,397,683
5,378,651
870,050
377,161
1,470,466
1,574,469
8,932,615
0.6
5.0
1.2
0.2
0.1
0.3
0.3
1.9
1,504,908
21,916,685
4,428,716
830,757
717,021
1,990,243
1,382,374
18,189,375
0.4
5.7
1.2
0.2
0.1
0.5
0.4
4.8
335,524,716
71.9
255,820,033 66.8
980,219
10,401,738
992,470
1,910,601
786,173
340,131
15,411,332
0.2
2.2
0.2
0.4
0.2
0.1
3.3
966,492
7,559,063
1,009,218
1,550,067
738,164
0.3
2.0
0.3
0.4
0.2
246,038
-
12,069,042
3.2
350,936,048
75.2
267,889,075 70.0
44,071,466
8,342,813
9.4
1.8
44,071,466 11.5
9,159,259
2.4
62,566,181
13.4
57,726,604 15.1
(7,266,708)
(881,247)
(1.6)
(0.2)
(4,103,449)
(1.1)
(881,247)
(0.2)
106,832,505
22.8
105,972,633 27.7
9,157,145
2.0
8,786,711
2.3
115,989,650
24.8
114,759,344 30.0
Total assets
$
466,925,698
100.0
382,648,419
100.0
Total liabilities and equity
$
466,925,698
100.0
382,648,419
100.0
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)
6
2020
2019
Amount
$ 1,048,929,251 100.0
%
Amount
%
980,442,346 100.0
1,013,470,729
96.6
946,533,518
96.5
35,458,522
3.4
33,908,828
3.5
4,604,361
4,198,621
15,162,995
23,965,977
11,492,545
0.4
0.4
1.5
2.3
1.1
4,961,131
4,204,536
14,156,793
23,322,460
10,586,368
0.5
0.4
1.5
2.4
1.1
1,636,257
0.2
1,664,803
0.2
261,043
-
(166,133)
-
(1,149,215)
(0.1)
(2,725,564)
(0.3)
493,920
0.1
-
-
(47,491)
435,657
1,630,171
13,122,716
2,713,204
10,409,512
486,554
(35,160)
197,008
-
-
-
0.2
1.3
0.3
1.0
(578,492)
(0.1)
10,007,876
2,112,157
7,895,719
1.0
0.2
0.8
(65,862)
(78,590)
(54,128)
2,632
(201,212)
-
-
-
-
-
(40,786)
407,276
109,246
35,847
439,889
-
-
-
-
-
(3,323,038)
(0.3)
(1,711,990)
(0.2)
2,679
161,498
(18,727)
-
-
-
(4,871)
(268,686)
(10,678)
-
-
-
(3,140,134)
(0.3)
(1,974,869)
(3,341,346)
(0.3)
(1,534,980)
$
7,068,166
0.7
6,360,739
6,955,899
939,820
7,895,719
5,456,508
904,231
6,360,739
$
9,361,893
1,047,619
$
10,409,512
6,083,542
984,624
7,068,166
$
$
$
$
0.9
0.1
1.0
0.6
0.1
0.7
2.15
2.12
(0.2)
(0.2)
0.6
0.7
0.1
0.8
0.5
0.1
0.6
1.60
1.58
4000
5000
6100
6200
6300
7100
7020
7050
7190
7590
7770
7900
7950
8300
8310
8311
8316
8320
Net sales revenue (notes (6)(w) and (7))
Cost of sales (notes (6)(f),(6)(r), (7) and (12))
Gross profit
Operating expenses: (notes (6)(r) and (12))
Selling expenses
Administrative expenses
Research and development expenses
Net operating income
Non-operating income and expenses:
Interest income (note (6)(y))
Other gains and losses, net (notes (6)(d), (6)(g), (6)(y) and (6)(aa))
Finance costs (notes (6)(m) and (6)(n))
Other income (note (6)(y))
Miscellaneous disbursements
Share of profit (loss) of associates and joint ventures accounted for using equity method
(note (6)(g))
Total non-operating income and expenses
Profit from continuing operations before tax
Less: Income tax expenses (note (6)(s))
Profit
Other comprehensive income:
Components of other comprehensive income that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans
Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other
comprehensive income that will not be reclassified to profit or loss
8349
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss (note (6)(s))
8360
8361
8368
8370
Components of other comprehensive income that will not be reclassified to profit or loss
Components of other comprehensive income (loss) that will be reclassified to profit or loss
Exchange differences on translation of foreign financial statements
Gains (losses) on hedging instrument (note (6)(z))
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other
comprehensive income that will be reclassified to profit or loss
8399
Income tax related to components of other comprehensive income that will be reclassified to profit or loss (note (6)(s))
Components of other comprehensive income that will be reclassified to profit or loss
8300
8500
8610
8620
8710
8720
Other comprehensive income
Total comprehensive income
Profit, attributable to:
Profit, attributable to owners of parent
Profit, attributable to non-controlling interests
Comprehensive income attributable to:
Comprehensive income (loss), attributable to owners of parent
Comprehensive income (loss), attributable to non-controlling interests
Earnings per share (note 6(v))
9750
9850
Basic earnings per share
Diluted earnings per share
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars)
Equity attributable to owners of parent
7
Total equity
attributable
to owners of
parent
Treasury
shares
(881,247) 105,723,646
6,955,899
(1,499,391)
5,456,508
-
-
-
Non-controlling
interests
7,438,202
939,820
(35,589)
904,231
Total equity
113,161,848
7,895,719
(1,534,980)
6,360,739
Total other equity interest
Unrealized
gains
(losses) on
financial assets
measured at
fair value
through other
comprehensiv
e income
Others
-
-
Exchange
differences on
translation of
foreign
financial
statements
(1,852,952)
(5,606,436)
-
(1,942,028)
(1,942,028)
-
474,763
474,763
Total other
equity
interest
(7,459,388)
-
(1,706)
(1,706)
(1,468,971)
(1,468,971)
Retained earnings
Special
reserve
Unappropriated
retained
earnings
Balance at January 1, 2019
Profit for the year ended December 31, 2019
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Special reserve appropriated
Cash dividends of ordinary share
Cash dividends from capital surplus
Changes in ownership interests in subsidiaries
Changes in equity of associates and joint ventures accounted for
using equity method
Adjustments of capital surplus for cash dividends received by
subsidiaries
Disposal of investments in equity instruments measured at fair
value through other comprehensive income
Changes in non-controlling interests
Balance at December 31, 2019
Profit for the year ended December 31, 2020
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Special reserve appropriated
Cash dividends of ordinary share
Cash dividends from capital surplus
Changes in ownership interests in subsidiaries
Changes in equity of associates and joint ventures accounted for
using equity method
Adjustments of capital surplus for cash dividends received by
subsidiaries
Others
Disposal of investments in equity instruments measured at fair
value through other comprehensive income
Ordinary
shares
$ 44,071,466
-
-
-
-
-
-
-
-
-
-
-
-
Capital
surplus
9,932,434
Legal
reserve
18,827,814
-
-
-
-
-
-
(881,429)
43,473
4,760
60,021
-
-
-
-
-
891,336
-
-
-
-
-
-
-
-
8,831,148
-
-
-
-
(1,363,317)
-
-
-
-
-
-
-
44,071,466
9,159,259
19,719,150
7,467,831
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(881,429)
1,735
2,228
60,021
999
-
-
-
-
-
695,590
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,366,088)
-
-
-
-
-
-
-
-
Total
retained
earnings
60,060,381
6,955,899
(30,420)
6,925,479
-
-
(4,407,147)
-
-
32,401,419
6,955,899
(30,420)
6,925,479
(891,336)
1,363,317
(4,407,147)
-
-
(27,199)
(27,199)
-
-
(4,824,910)
(4,824,910)
-
30,539,623
9,361,893
(48,219)
9,313,674
-
57,726,604
9,361,893
(48,219)
9,313,674
(695,590)
3,366,088
(4,407,147)
-
(33,051)
-
-
(4,407,147)
-
(33,051)
(9,055)
(9,055)
-
-
-
-
(24,844)
(24,844)
-
-
8,342,813
20,414,740
4,101,743
38,049,698
62,566,181
(6,888,977)
-
-
-
-
-
-
-
-
-
(3,794,980)
-
(3,093,997)
(3,093,997)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,824,910
-
(306,763)
-
(137,062)
(137,062)
-
-
-
-
-
-
33,051
8,978
24,844
-
(376,952)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,824,910
-
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
43,473
(22,439)
60,021
-
-
(1,706)
(4,103,449)
-
927
927
(3,230,132)
(3,230,132)
(881,247) 105,972,633
9,361,893
(3,278,351)
6,083,542
-
-
-
-
-
-
-
-
-
-
33,051
8,978
24,844
-
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
1,735
2,151
60,021
999
-
-
(779)
(7,266,708)
(881,247) 106,832,505
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
43,473
(22,439)
60,021
-
444,278
8,786,711
1,047,619
(62,995)
984,624
444,278
114,759,344
10,409,512
(3,341,346)
7,068,166
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
1,735
2,151
60,021
999
-
(614,190)
9,157,145
(614,190)
115,989,650
Changes in non-controlling interests
Balance at December 31, 2020
-
$ 44,071,466
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars)
Cash flows from (used in) operating activities:
Profit before tax
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation and amortization
Increase (decrease) in expected credit loss
Net loss (gain) on financial assets or liabilities at fair value through profit or loss
Finance cost
Interest income
Dividend income
Compensation cost of share-based payments
Share of loss (profit) of associates and joint ventures accounted for using equity method
Gain on disposal of property, plant and equipment
Gain on disposal of investments
Others
Total adjustments to reconcile profit (loss)
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in financial assets at fair value through profit or loss
Decrease (increase) in notes and accounts receivable
Decrease (increase) in other receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Decrease (increase) in other non-current assets
Total changes in operating assets
Changes in operating liabilities:
Increase (decrease) in financial liabilities at fair value through profit or loss
Increase (decrease) in notes and accounts payable
Increase (decrease) in other payables
Increase (decrease) in refund liabilities
Increase (decrease) in provisions
Increase (decrease) in contract liabilities
Increase (decrease) in other current liabilities
Others
Total changes in operating liabilities
Total changes in operating assets and liabilities
Total adjustments
Cash inflow generated from operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash flows from (used in) operating activities
Cash flows from (used in) investing activities:
Redemption from financial assets at amortized cost
Acquisition of financial assets at fair value through profit or loss and through other comprehensive income
Proceeds from disposal of financial assets at fair value through profit or loss and through other comprehensive income
Acquisition of investments accounted for using equity method
Proceeds from disposal of investments accounted for using equity method
Net cash flow from disposal of subsidiaries
Proceeds from capital reduction of investments
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Acquisition of right-of-use assets
Others
Net cash flows from (used in) investing activities
Cash flows from (used in) financing activities:
Increase (decrease) in short-term borrowings
Proceeds from issuing bonds
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
Cash dividends paid
Change in non-controlling interests
Others
Net cash flows from (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
See accompanying notes to consolidated financial statements.
8
2020
2019
$
13,122,716
10,007,876
6,192,985
(17,314)
(9,575)
1,149,215
(1,636,257)
(108,996)
72,507
(435,657)
(25,499)
(29,757)
-
5,151,652
(898,874)
(40,455,446)
521,393
(17,718,421)
(25,283)
16,537
(58,560,094)
130,763
55,280,286
666,404
192,095
39,293
(136,439)
(519,777)
60,122
55,712,747
(2,847,347)
2,304,305
15,427,021
1,490,940
230,451
(1,214,506)
(1,672,465)
14,261,441
-
(106,044)
52,105
(215,076)
38,952
-
6,933
(6,878,804)
174,054
(480,424)
(317,808)
(186,317)
(7,912,429)
31,886,889
-
61,553,700
(67,967,785)
(846,836)
(5,228,555)
(688,469)
92,634
18,801,578
(2,583,064)
22,567,526
66,559,397
89,126,923
6,419,421
(10,355)
(24,217)
2,725,564
(1,664,803)
(127,349)
125,281
(197,008)
(40,245)
(66,837)
16,668
7,156,120
2,630,896
12,043,387
(571,592)
715,384
(174,770)
(66,117)
14,577,188
(21,059)
(9,831,480)
2,735,002
(197,458)
403,776
(519,849)
(991,160)
6,789
(8,415,439)
6,161,749
13,317,869
23,325,745
1,898,096
266,110
(3,112,013)
(1,456,869)
20,921,069
350,000
(264,261)
1,511,226
(43,200)
18,033
143,495
10,120
(5,850,532)
168,226
(498,402)
(281,637)
110,944
(4,625,988)
(11,398,353)
1,007,240
66,462,300
(69,247,925)
(832,815)
(5,228,555)
258,360
(34,005)
(19,013,753)
(1,018,476)
(3,737,148)
70,296,545
66,559,397
$
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
9
(1) Company history
Compal Electronics, Inc. (“the Company”) was incorporated in June 1984 as a company limited by
shares and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company’s
registered office is No.581 and No.581-1 Ruiguang Rd., Neihu Dist., Taipei City, Taiwan. In accordance
with Article 19 of the Business Mergers and Acquisitions Act, the Company merged its subsidiary,
Compal Communications, Inc. (“CCI”) (the “Merger”), pursuant to the resolutions of the Board of
Directors in November 2013. The Company was the surviving company and CCI was the dissolved
company. The effective date of the Merger was February 27, 2014. The Company and its subsidiaries
(together referred to as the“Group”and individually as the (“Group entities”) primarily are involved
in the manufacture and sale of notebook personal computers (“notebook PCs”), monitors, LCD TVs,
mobile phones and various components and peripherals.
(2) Approval date and procedures of the consolidated financial statements:
These consolidated financial statements were authorized for issuance by the Board of Directors and issued
on March 26, 2021.
(3) New standards, amendments and interpretations adopted:
(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the
Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.
The Group has initially adopted the following new amendments, which do not have a significant
impact on its consolidated financial statements, from January 1, 2020:
● Amendments to IFRS 3“Definition of a Business”
● Amendments to IFRS 9, IAS39 and IFRS7“Interest Rate Benchmark Reform”
● Amendments to IAS 1 and IAS 8 “Definition of Material”
● Amendments to IFRS 16“COVID-19-Related Rent Concessions”
(b) The impact of IFRS issued by the FSC but not yet effective
The Group assesses that the adoption of the following new amendments, effective for annual period
beginning on January 1, 2021, would not have a significant impact on its consolidated financial
statements:
● Amendments to IFRS 4“Extension of the Temporary Exemption from Applying IFRS 9”
● Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16“Interest Rate Benchmark Reform
－Phase 2”
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
10
(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC
The following new and amended standards, which may be relevant to the Group, have been issued by
the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:
Standards or
Interpretations
Amendments to IAS 1
“Classification of Liabilities as
Current or Non-current”
Content of amendment
The amendments aim to promote consistency
in applying the requirements by helping
companies determine whether,
the
statement of balance sheet, debt and other
liabilities with an uncertain settlement date
should be classified as current (due or
potentially due to be settled within one year)
or non-current.
in
Effective date per
IASB
January 1, 2023
include clarifying
the
The amendments
classification
for debt a
requirements
company might settle by converting it into
equity.
The Group is evaluating the impact of its initial adoption of the abovementioned standards or
interpretations on its consolidated financial position and consolidated financial performance. The
results thereof will be disclosed when the Group completes its evaluation.
The Group does not expect the following other new and amended standards, which have yet to be
endorsed by the FSC, to have a significant impact on its consolidated financial statements:
● Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor
and Its Associate or Joint Venture”
● IFRS 17“Insurance Contracts”and amendments to IFRS 17“Insurance Contracts”
● Amendments to IAS 16“Property, Plant and Equipment－Proceeds before Intended Use”
● Amendments to IAS 37“Onerous Contracts－Cost of Fulfilling a Contract”
● Annual Improvements to IFRS Standards 2018-2020
● Amendments to IFRS 3“Reference to the Conceptual Framework”
● Amendments to IAS 1“Disclosure of Accounting Policies”
● Amendments to IAS 8“Definition of Accounting Estimates”
(4) Summary of significant accounting policies:
The significant accounting policies presented in the consolidated financial statements are summarized as
follows. The following accounting policies were applied consistently throughout the periods presented in
the consolidated financial statements.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
11
(a) Statement of compliance
These consolidated financial statements have been prepared in accordance with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as the
Regulations), the International Financial Reporting Standards, the International Accounting
Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC
(hereinafter referred to as the IFRS endorsed by the FSC).
(b) Basis of preparation
(i) Basis of measurement
Except for the following significant accounts in the statement of financial position, the
consolidated financial statements have been prepared on the historical cost basis:
1)
2)
Financial instruments (including derivative financial instruments) measured at fair value
through profit or loss are measured at fair value;
Financial instruments measured at fair value through other comprehensive income are
measured at fair value;
3) Hedging financial instruments are measured at fair value;
4)
The defined benefit liability (or asset) is recognized as plan assets less the present value
of the defined benefit obligation and the effect of the asset ceiling mentioned in note
(4)(r).
(ii) Functional and presentation currency
The functional currency of each Group entities is determined based on the primary economic
environment in which the entities operates. The consolidated financial statements are presented
in New Taiwan Dollar, which is the Company's functional currency. All financial information
presented in New Taiwan Dollar has been rounded to the nearest thousand.
(c) Basis of consolidation
(i)
Principles of preparation of the consolidated financial statements
The consolidated financial statements comprise the Company and its subsidiaries. The Group
controls an entity when it is exposed, or has rights, to variable returns from its involvement
with the entity and has the ability to affect those returns through its control over the entity.
The financial statements of subsidiaries are included in the consolidated financial statements
from the date that control commences until the date that control ceases. Intra-group balances
and transactions, and any unrealized income and expenses arising from intra-group transactions
are eliminated in preparing the consolidated financial statements. Losses applicable to the
non-controlling interests in a subsidiary are allocated to the non-controlling interests even if
doing so causes the non-controlling interests to have a deficit balance.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
12
Accounting policies of subsidiaries have been adjusted to ensure consistency with the policies
adopted by the Group.
Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control
are accounted for as equity transactions. Any differences between the Group’s share of net
assets before and after the change, and any considerations received or paid, are adjusted to or
against the Group reserves.
When the Group loses control over a subsidiary, it derecognizes the assets (including any
goodwill) and liabilities of the subsidiary, and any related non-controlling interests and other
components of equity. Any interest retained in the former subsidiary is measured at fair value
when control is lost, with the resulting gain or loss being recognized in profit or loss. The
Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the
consideration received as well as any investment retained in the former subsidiary at its fair
value at the date when control is lost; and (ii) the assets (including any goodwill), liabilities of
the subsidiary as well as any related non-controlling interests at their carrying amounts at the
date when control is lost, as gain or loss in profit or loss. When the Group loses control of its
subsidiary, it accounts for all amounts previously recognized in other comprehensive income in
relation to that subsidiary on the same basis as would be required if it had directly disposed of
the related assets or liabilities.
(ii) List of subsidiaries in the consolidated financial statements
Name of
investor
The Company
Name of Subsidiary
Panpal Technology Corp.
(“Panpal”)
Nature of Operation
Investment
〞
〃
〃
Gempal Technology Corp.
(“Gempal”)
Hong Ji Capital Co., Ltd.
(“Hong Ji”)
Hong Jin Investment Co.,
Ltd. (“Hong Jin”)
〃
〃
〃
The Company,
Panpal, et al.
Accesstek, Inc. (“ATK”) Design, manufacturing and sales of
optical disk drives and components
〃
Arcadyan Technology
Corp. (“Arcadyan”)
R&D, manufacturing and sales of
wireless network, integrated household
electronics, and mobile office products
Percentage of
ownership
December
31, 2020
December
31, 2019
Description
100%
100% Panpal held 31,648 thousand
shares of the Company as of
December 31, 2020, which
represented 0.7% of the
Company’s outstanding
shares.
100%
100% Gempal held 18,369
thousand shares of the
Company as of December
31, 2020, which represented
0.4% of the Company’s
outstanding shares.
100%
100%
100%
100%
-
35%
38% The Group had control over
ATK. The liquidation
procedures had been
completed in February 2020.
35% The Group had the ability to
control Arcadyan.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
13
Name of
investor
The Company Rayonnant Technology
Name of Subsidiary
Co., Ltd. (“Rayonnant
Technology”)
HengHao Technology Co.,
Ltd. (“HengHao”)
Ripal Optoelectronics Co.,
Ltd. (“Ripal”)
Mactech Co., Ltd
(“Mactech”)
General Life
Biotechnology Co., Ltd.
(“GLB”)
Nature of Operation
Manufacturing and sales of PCs,
computer periphery devices, and
electronic components
Manufacturing and sales of PCs,
computer periphery devices, and
electronic components
Manufacturing of electric appliance and
audiovisual electric products
Manufacturing of equipment and
lighting, retailing of equipment and
international trading
Manufacturing and sales of medical
equipment
Unicore BioMedical Co.,
Ltd. (“Unicore”)
Hippo Screen Neurotech
Co., Ltd. (“Hippo
Screen”)
Shennona Taiwan Co., Ltd.
(“Shennona TW”)
Aco Smartcare Co., Ltd.
(“Aco Smartcare”)
Shennona Corporation
(“Shennona”)
Auscom Engineering Inc.
(“Auscom”)
Just International Ltd.
(“Just”)
Compal International
Holding Co., Ltd.
(“CIH”)
Compal Electronics
(Holding) Ltd.
(“CEH”)
Management consulting services, rental
and leasing business, wholesale and retail
sale of medical equipment
Management consulting services, rental
and leasing business, wholesale and retail
sale of precision instruments and
international trading
Management consulting services, rental
and leasing business, wholesale and retail
sale of precision instruments and
international trading
Wholesale and retail sale of computer
software, software design services, data
processing services, wholesale and retail
sale of electronic materials, wholesale
and retail sale of precision instruments,
and biotechnology services
Medical care IOT business
R&D of notebook PC related products
and components
Investment
〃
〃
Percentage of
ownership
December
31, 2020
December
31, 2019
Description
100%
100%
100%
100%
100%
100%
53%
53%
50%
50%
100%
100%
70%
70%
100%
100%
52%
52%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Bizcom Electronics, Inc.
(“Bizcom”)
Flight Global Holding Inc.
Warranty services and marketing of
monitors and notebook PCs
Investment
100%
100%
100%
100%
(“FGH”)
〃
100%
100%
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
High Shine Industrial Corp.
(“HSI”)
The Company
and BSH
The Company Compal Europe (Poland)
Sp. z o.o. (“CEP”)
Big Chance International
Co., Ltd. (“BCI”)
〃
Maintenance and warranty services of
notebook PCs
Investment
〃
〃
〃
〃
Compal Rayonnant
Holdings Limited
(“CRH”)
Core Profit Holdings
Limited (“CORE”)
Compalead Electronics
B.V. (“CPE”)
〃
〃
〃
CGS Technology (Poland)
Sp. z o.o. (CGSP)
Maintenance and warranty services of
notebook PCs
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
- CGSP was established in
September 2020.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
14
Name of
investor
Panpal and
Gempal
Name of Subsidiary
Compalead Eletronica do
Brasil Industria e
Comercio Ltda.
(“CEB”)
Nature of Operation
Manufacturing of notebook PCs
Percentage of
ownership
December
31, 2020
December
31, 2019
Description
100%
100%
〃
Compal Electronics India
Private Limited
(“CEIN”)
Manufacturing and warranty service of
mobile phones
100%
100%
Panpal and CEB Compal Electronica DA
Manufacturing of notebook PCs
100%
Amazonia Ltda
(“CEA”)
- CEA was established in
September 2020.
Just
Compal Display Holding
Investment
100%
100%
〃
〃
(HK) Limited
(“CDH (HK)”)
Compal Electronics
International Ltd.
(“CII”)
Compal International Ltd.
(“CPI”)
CDH (HK) Compal Electronics
(China) Co., Ltd.
(“CPC”)
Compal Optoelectronics
(Kunshan) Co., Ltd.
(“CPO”)
Compal System Trading
(Kunshan) Co., Ltd.
(“CST”)
Compal Smart Device
(Chongqing) Co., Ltd.
(“CSD”)
Smart International Trading
〃
〃
100%
100%
100%
100%
Manufacturing and sales of monitors
100%
100%
Manufacturing and sales of LCD TVs
100%
100%
International trade and distribution of
computers and electronic components
100%
100%
Research, manufacturing and sales of
communication devices, mobile phones,
electronic computer, smart watch, and
providing related technical service
Investment
100%
100%
100%
100%
Ltd. (“Smart”)
Amexcom Electronics Inc.
(“AEI”)
Sales and maintenance of LCD TVs
100%
100%
Mexcom Electronics, LLC
Investment
Investment
(“MEL”)
Mexcom Technologies,
LLC (“MTL”)
Compal International
Holding (HK) Limited
(“CIH (HK)”)
Jenpal International Ltd.
(“Jenpal”)
Prospect Fortune Group
Ltd. (“PFG”)
Fortune Way Technology
Corp. (“FWT”)
〃
〃
〃
〃
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
〃
〃
CPC
CII
〃
〃
〃
CIH
〃
〃
〃
CIH (HK) Compal Electronics
Manufacturing of notebook PCs
100%
100%
〃
〃
〃
Technology (Kunshan)
Co., Ltd. (“CET”)
Compal Information
(Kunshan) Co., Ltd.
(“CIC”)
Compal Information
Technology
(Kunshan) Co., Ltd.
(“CIT”)
Kunshan Botai Electronics
Co., Ltd. (“BT”)
〃
〃
〃
100%
100%
100%
100%
100%
100%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
15
Name of
investor
CIH (HK) Compal Information
Name of Subsidiary
Research and
Development (Nanjing)
Co., Ltd. (“CIN”)
〃
Compal Digital
Technology (Kunshan)
Co., Ltd. (“CDT”)
Compower Global Service
Co., Ltd. (“CGS”)
Compal Investment
(Jiansu) Co., Ltd.
(“CIJ”)
Compal Display
BT
CDH (HK)
and CIH (HK)
CIJ
Electronics (Kunshan)
Co., Ltd. (“CDE”)
Etrade Management Co.,
Ltd. (“Etrade”)
The Company
and Webtek
The Company Webtek Technology Co.,
Ltd. (“Webtek”)
Forever Young Technology
Inc. (“Forever”)
〃
〃
〃
CDH (HK) and
Etrade
Etrade
Compal Digital
Communication
(Nanjing) Co., Ltd.
(“CDCN”)
Compal Wireless
Communication
(Nanjing) Co., Ltd.
(“CWCN”)
Hanhelt Communication
(Nanjing) Co., Ltd.
(“Hanhelt”)
〃
Forever
〃
〃
ATK
〃
〃
Nature of Operation
Software and hardware R&D of
computers, mobile phones and electronic
components
Percentage of
ownership
December
31, 2020
-
December
31, 2019
- The liquidation procedures
Description
had been completed in
September 2019.
Manufacturing and sales of notebook
PCs, mobile phones, and digital products
100%
100%
Maintenance and warranty service of
notebook PCs
Investment
100%
100%
100%
100%
Manufacturing and sales of LCD TVs
100%
100%
Investment
UniCom Global, Inc.
(“UCGI”)
Palcom International
Corporation (“Palcom”)
Compal Communication
(Nanjing) Co., Ltd.
(“CCI Nanjing”)
Manufacturing and sales of computers
and electronic components
Sales of mobile phones
Manufacturing and processing of mobile
phones and tablet PCs
〃
〃
〃
〃
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
R&D and manufacturing of electronic
communication equipment
100%
100%
Giant Rank Trading Ltd.
Sales of mobile phones
100%
100%
(“GIA”)
Compal Wise Electronic
(Vietnam) Co., Ltd.
(“CWV”)
OptoRite Inc.
MSI-ATK Otpics Holding
Corporation
(“MSI-ATK”)
Maitek (BVI) Corporation
(“Maitek”)
Manufacturing and sales of mobile
phones, tablet PCs, smart watches,
communication devices, other electronic
devices and providing related technical
service.
Sales of optical disc drives
Investment
〃
100%
- CWV was established in
August 2020.
-
-
-
100%
100%
100%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
16
Name of
investor
Name of Subsidiary
Arcadyan Arcadyan Technology N.A.
Nature of Operation
Sales of wireless network products
Percentage of
ownership
December
31, 2020
December
31, 2019
Description
100%
100%
Technical support and sales of wireless
network products
100%
100%
Sales of wireless network products
100%
100%
Investment
100%
100%
Technical support of wireless network
products
100%
100%
Sales of wireless network products
100%
100%
Sales of wireless network products
100%
- Arcadyan RU was
established in June 2020.
Sales of wireless network products
100%
100%
Investment
100%
100%
R&D and sales of household digital
electronic products
Investment
R&D and sales of cable modem, digital
set-up box, and other communication
products
Import and export business
61%
51%
64%
-
61%
51%
64%
- The shares were recovered
in November 2019. In the
first quarter of 2020, the
liquidation procedures had
been completed.
Import and export business, technical
support and consulting service of
broadband networks
100%
100%
〃
100%
100%
Corp. (“Arcadyan
USA”)
〃
Arcadyan Germany
Technology GmbH
(“Arcadyan
Germany”)
Arcadyan Technology
Corporation Korea
(“Arcadyan Korea”)
Arcadyan Holding (BVI)
Corp. (“Arcadyan
Holding”)
Arcadyan Technology
Limited (“Arcadyan
UK”)
Arcadyan Technology
Australia Pty Ltd.
(“Arcadyan AU”)
Arcadyan Technology
Corporation (Russia),
LLC. (“Arcadyan
RU”)
Arcadyan do Brasil Ltda.
(“Arcadyan Brasil”)
Zhi-Bao Technology Inc.
(“Zhi-Bao”)
Tatung Technology Inc.
(“TTI”)
AcBel Telecom Inc.
(“AcBel Telecom”)
Compal Broadband
Network Inc. (“CBN”)
〃
〃
〃
〃
〃
Arcadyan and
Zhi-Bao
Arcadyan
〃
〃
The Company,
Arcadyan, and
its subsidiaries
CBN
Speedlink Tradings
Limited
(“Speedlink”)
〃
〃
Arcadyan
Holding
〃
〃
Compal Broadband
Networks Belgium
BVBA (“CBNB”)
Compal Broadband
Networks Netherlands
B.V. (“CBNN”)
Sinoprime Global Inc.
(“Sinoprime”)
Arcadyan Technology
(Shanghai) Corp. (“SVA
Arcadyan”)
Arch Holding (BVI) Corp.
(“Arch Holding”)
Investment
R&D and sales of wireless network
products
Investment
Arch Holding Compal Networking
(Kunshan) Co., Ltd.
(“CNC”)
Sinoprime Arcadyan Technology
(Vietnam) Co., Ltd.
(“Arcadyan Vietnam”)
Manufacturing of wireless network
products
Manufacturing of wireless network
products
AcBel Telecom Leading Images Ltd.
Investment
(“Leading Images”)
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
100% The liquidation procedures
had been completed on
December 7, 2020.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
17
Name of
investor
Leading Images Astoria Networks GmbH
(“Astoria GmbH”)
Name of Subsidiary
Nature of Operation
Sales of wireless network products
Percentage of
ownership
December
31, 2020
-
December
31, 2019
Description
100% The liquidation procedures
had been completed on
October 14, 2020.
TTI
〃
Quest
Exquisite
HSI
〃
IUE
Goal
Rayonnant
Technology
and CRH
APH
〃
Rayonnant
Technology
(HK)
Quest International Group
Co., Ltd. (“Quest”)
Tatung Technology of
Japan Co., Ltd.
(“TTJC”)
Exquisite Electronic Co.,
Ltd. (“Exquisite”)
Tatung Home Appliances
(Wujiang) Co., Ltd.
(“THAC”)
Intelligent Universal
Enterprise Ltd.
(“IUE”)
Goal Reach Enterprises
Ltd. (“Goal”)
Compal (Vietnam) Co.,
Ltd. (“CVC”)
Compal Development &
Management
(“Vietnam”) Co., Ltd.
(“CDM”)
Allied Power Holding
Corp. (“APH”)
Primetek Enterprises
Limited (“PEL”)
Rayonnant Technology
(HK) Co., Ltd.
(“Rayonnant
Technology (HK)”)
Rayonnant Technology
(Taicang) Co., Ltd.
(“Rayonnant
Technology
(Taicang)”)
Investment
Sales of household digital electronic
products
Investment
Manufacturing of household digital
electronic products
100%
100%
100%
100%
100%
100%
100%
100%
Investment
100%
100%
〃
R&D, manufacturing, sales, and
maintenance of notebook PCs, computer
monitors, LCD TVs and electronic
components
Construction of and investment in
infrastructure in Ba-Thien industrial
district of Vietnam
100%
100%
100%
100%
100%
100%
Investment
100%
100%
〃
〃
100%
100%
100%
100%
Manufacturing and sales of aluminum
alloy and magnesium alloy products
100%
100%
HengHao HengHao Holdings A Co.,
Investment
100%
100%
HHA
Ltd. (“HHA”)
HengHao Holdings B Co.,
Ltd. (“HHB”)
〃
100%
100%
HHB
HengHao Trading Co., Ltd. Marketing and international trade
-
100% The liquidation procedures
had been completed on
December 2020
〃
〃
BCI
〃
CMI
PRI
HengHao Optoelectronics
Technology (Kunshan)
Co., Ltd. (“HengHao
Kunshan”)
Lucom Display
Technology (Kunshan)
Limited (“Lucom”)
Center Mind International
Co., Ltd. (“CMI”)
Prisco International Co.,
Ltd. (“PRI”)
Compal Investment
(Sichuan) Co., Ltd.
(“CIS”)
Compal Electronics
(Chongqing) Co., Ltd.
(“CEQ”)
Production of touch panels and related
components
100%
100%
Manufacturing of touch panels and LCD
TVs
100%
100%
Investment
100%
100%
〃
100%
100%
Outward investment and consulting
services
R&D, manufacturing and sales of
notebook PCs, related components,
related maintenance and warranty
services
100%
100%
100%
100%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
18
Name of
investor
CIS
Name of Subsidiary
Compal Electronics
(Chengdu) Co., Ltd.
(“CEC”)
〃
Compal Management
(Chengdu) Co., Ltd.
(“CMC”)
CORE
Billion Sea Holdings
Nature of Operation
R&D and manufacturing of notebook
PCs, tablet PCs, digital products,
network switches, wireless AP, and
automobile electronic products
Corporate management consulting,
training and education, business
information consulting, financial and tax
consulting, investment consulting, and
investment management services
Investment
Limited (“BSH”)
Mithera Capital Io LP
(“Mithera”)
〃
BSH
GLB
Unicore
Percentage of
ownership
December
31, 2020
December
31, 2019
Description
100%
100%
100%
100%
100%
100%
99%
99%
Rapha Bio Ltd. (“RBL”) Detector and feature
Raycore Biotech Co., Ltd.
Animal medication retail and wholesale
100%
51%
100%
51%
(“Raycore”)
(d) Foreign currency
(i)
Foreign currency transaction
Transactions in foreign currencies are translated to the respective functional currencies of the
Group at exchange rates at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are retranslated to the functional
currency at the exchange rate at that date. The foreign currency gain or loss on monetary items
is the difference between the amortized cost in the functional currency at the beginning of the
year adjusted for the effective interest and payments during the period, and the amortized cost
in foreign currency translated at the exchange rate at the reporting date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency at the exchange rate at the date that the fair
value was determined. Non-monetary items in a foreign currency that are measured based on
historical cost are translated using the exchange rate at the date of translation.
Foreign currency differences arising on retranslation are recognized in profit or loss, except for
the following differences which are recognized in other comprehensive income arising on the
retranslation:
1)
2)
fair value through other comprehensive income financial assets;
a financial liability designated as a hedge of the net investment in a foreign operation to
the extent that the hedge is effective; or
3)
qualifying cash flow hedges to the extent the hedge is effective
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
19
(ii) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments
arising on acquisition, are translated to the Group entities' functional currency at exchange rates
of the reporting date. The income and expenses of foreign operations, excluding foreign
operations in hyperinflationary economies, are translated to the Group entities' functional
currency at average rate. Foreign currency differences are recognized in other comprehensive
income, and presented in the foreign currency translation differences in equity.
When a foreign operation is disposed of such that control, significant influence or joint control
is lost, the cumulative amount in the translation reserve related to that foreign operation is
reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of
any part of its interest in a subsidiary that includes a foreign operation while retaining control,
the relevant proportion of the cumulative amount is reattributed to non-controlling interest.
When the Group disposes of only part of investment in an associate of joint venture that
includes a foreign operation while retaining significant or joint control, the relevant proportion
of the cumulative amount is reclassified to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign operation is
neither planned nor likely in the foreseeable future, foreign currency gains and losses arising
from such items are considered to form part of a net investment in the foreign operation and are
recognized in other comprehensive income, and presented in the translation reserve in equity.
(e) Classification of current and non-current assets and liabilities
An asset is classified as current under one of the following criteria, and all other assets are classified
as non-current.
(i)
It expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(ii)
It holds the asset primarily for the purpose of trading;
(iii) It expects to realize the asset within twelve months after the reporting period; or
(iv) The asset is cash and cash equivalent unless the asset is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting period.
A liability is classified as current under one of the following criteria, and all other liabilities are
classified as non-current.
(i)
It expects to settle the liability in its normal operating cycle;
(ii)
It holds the liability primarily for the purpose of trading;
(iii) The liability is due to be settled within twelve months after the reporting period; or
(iv) The Group does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting period. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity instruments do not impact its
classification.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
20
(f) Cash and cash equivalents
Cash comprise cash on hand and demand deposits. Cash equivalents are subject to an insignificant
risk of changes in their fair value, and are used by the Group in the management of its short-term
commitments.
The time deposits which meet the above definition and are held for the purpose of meeting short-term
cash commitments rather than for investment or other purposes are reclassified as cash equivalents.
(g) Financial instruments
(i)
Financial assets
Financial assets are classified into the following categories: measured at amortized cost, fair
value through other comprehensive income (“FVOCI”) and fair value through profit or loss
(“FVTPL”).
The Group shall reclassify all affected financial assets only when it changes its business model
for managing its financial assets.
1)
Financial assets measured at amortized cost
A financial asset is measured at amortized cost if it meets both of the following
conditions and is not designated as at FVTPL:
‧ it is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
‧ its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
A financial asset measured at amortized cost is initially recognized at fair value, plus any
directly attributable transaction costs. These assets are subsequently measured at
amortized cost using the effective interest method. The amortized cost is reduced by
impairment losses. Interest income, foreign exchange gains and losses, and impairment
loss, are recognized in profit or loss. Any gain or loss on derecognition is recognized in
profit or loss. A regular way purchase or sale of financial assets is recognized and
derecognized, as applicable, using trade date accounting.
2)
Fair value through other comprehensive income (“FVOCI”)
A debt investment is measured at FVOCI if it meets both of the following conditions and
is not designated as at FVTPL:
‧ it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
‧ its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
21
Some accounts receivables are held within a business model whose objective is achieved
by both collecting contractual cash flows and selling by the Group, therefore, those
receivables are measured at FVOCI and presented as accounts receivable.
On initial recognition of an equity investment that is not held for trading, the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an instrument-by-instrument basis.
A financial asset measured at FVOCI is initially recognized at fair value, plus any
directly attributable transaction costs. These assets are subsequently measured at fair
value. Interest income calculated using the effective interest method, foreign exchange
gains and losses, and impairment losses, deriving from debt investments are recognized
in profit or loss; whereas dividends deriving from equity investments are recognized as
income in profit or loss, unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses of financial assets measured at FVOCI
are recognized in OCI. On derecognition, gains and losses accumulated in OCI of debt
investments are reclassified to profit or loss. However, gains and losses accumulated in
OCI of equity investments are reclassified to retain earnings instead of profit or loss. A
regular way purchase or sale of financial assets is recognized and derecognized, as
applicable, using trade date accounting.
Dividend income derived from equity investments is recognized on the date that the
Group’s right to receive payment is established, which in the case of quoted securities is
normally on the date the shareholders' meeting approved the earning distribution.
3)
Fair value through profit or loss (“FVTPL”)
All financial assets not classified as amortized cost or FVOCI described as above are
measured at FVTPL, including derivative financial assets. On initial recognition, the
Group may irrevocably designate a financial asset, which meets the requirements to be
measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
Financial assets in this category are measured at fair value at initial recognition.
Attributable transaction costs are recognized in profit or loss as incurred. Subsequent
changes that are measured at fair value, which take into account any dividend and interest
income, are recognized in profit or loss. A regular way purchase or sale of financial assets
is recognized and derecognized, as applicable, using trade date accounting.
4)
Impairment of financial assets
The Group recognizes loss allowances for expected credit losses on financial assets
measured at amortized cost (including cash and cash equivalents, financial assets
measured at amortized costs, notes and accounts receivable, other receivable, guarantee
deposit and other financial assets), debt investments measured at FVOCI, and accounts
receivable measured at FVOCI.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
22
The Group measures loss allowances at an amount equal to lifetime expected credit loss
(“ECL”), except for the following which are measured as 12-month ECL:
‧ debt securities that are determined to have low credit risk at the reporting date; and
‧ other debt securities and bank balances for which credit risk (i.e. the risk of default
occurring over the expected life of the financial instrument) has not increased
significantly since initial recognition.
Loss allowance for trade receivables and contract assets are always measured at an
amount equal to lifetime ECL.
Lifetime ECLs are the ECLs that result from all possible default events over the expected
life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 month after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual
period over which the Group is exposed to credit risk.
When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECL, the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort. This
includes both quantitative and qualitative information and analysis based on the Group’s
historical experience and informed credit assessment as well as forward-looking
information.
The Group considers a debt security to have low credit risk when its credit risk rating is
equivalent to the globally understood definition of ‘investment grade which is considered
to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or
higher per Taiwan Ratings’.
The Group assumes that the credit risk on a financial asset has increased significantly if it
is more than 30 days past due.
The Group considers a financial asset to be in default when the financial asset is more
than 90 days past due or the borrower is unlikely to pay its credit obligations to the Group
in full.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. the difference between the cash flows due to
the Group in accordance with the contract and the cash flows that the Group expects to
receive). ECLs are discounted at the effective interest rate of the financial asset.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
23
At each reporting date, the Group assesses whether financial assets carried at amortized
cost and debt securities at FVOCI are credit-impaired. A financial asset
is
‘credit-impaired’ when one or more events that have a detrimental impact on the
estimated future cash flows of the financial asset have occurred. An evidence that a
financial assets is credit-impaired includes the following observable data:
‧ significant financial difficulty of the borrower or issuer;
‧ a breach of contract such as a default or being more than 90 days past due;
‧ the lender of the borrower, for economic or contractual reasons relating to the
borrower's financial difficulty, having granted to the borrower a concession that the
lender would not otherwise consider;
‧ it is probable that the borrower will enter bankruptcy or other financial reorganization;
or
‧ the disappearance of an active market for a security because of financial difficulties.
Loss allowances for financial assets measured at amortized cost are deducted from the
gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is
recognized in other comprehensive income instead of reducing the carrying amount of the
asset. The Group recognizes the amount of expected credit losses (or reversal) in profit or
loss, as an impairment gain or loss.
The gross carrying amount of a financial asset is written off (either partially or in full) to
the extent that there is no realistic prospect of recovery. This is generally the case when
the Group determines that the debtor does not have assets or sources of income that could
generate sufficient cash flows to repay the amounts subject to the write-off. However,
financial assets that are written off could still be subject to enforcement activities in order
to comply with the Group’s procedures for recovery of amounts due.
5) Derecognition of financial assets
Financial assets are derecognized when the contractual rights to the cash flows from the
assets expire, or when the Group transfers substantially all the risks and rewards of
ownership of the financial assets.
On derecognition of a debt instrument in its entirety, the Group recognizes the difference
between its carrying amount and the sum of the consideration received or receivable and
any cumulative gain or loss that had been recognized in other comprehensive income and
presented in“other equity – unrealized gains or losses on fair value through other
comprehensive income ” , in profit or loss, and presented it in the line item of
non-operating income.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
24
On derecognition of a financial asset other than in its entirety, the Group allocates the
previous carrying amount of the financial asset between the part it continues to recognize
under continuing involvement, and the part it no longer recognizes on the basis of the
relative fair values of those parts on the date of the transfer. The difference between the
carrying amount allocated to the part that is no longer recognized and the sum of the
consideration received for the part no longer recognized and any cumulative gain or loss
allocated to it that had been recognized in other comprehensive income is recognized in
profit or loss, and presented in the line item of non-operating income and expenses. A
cumulative gain or loss that had been recognized in other comprehensive income is
allocated between the part that continues to be recognized and the part that is no longer
recognized on the basis of the relative fair values of those parts.
(ii) Financial liabilities and equity instruments
1) Classification of debt or equity
Debt or equity instruments issued by the Group are classified as financial liabilities or
equity in accordance with the substance of the contractual agreement.
Equity instruments refer to surplus equities of the assets after the deduction of all the
debts for any contracts. Equity instruments issued are recognized as the amount of
consideration received, less, the direct cost of issuing.
Interest and loss or gain related to financial liabilities are recognized as profit or loss and
are reported under non-operating income and expenses. Financial liabilities are
reclassified as equity when converted, and conversions do not generate profit or loss.
2)
Financial liabilities at fair value through profit or loss
A financial liability is classified in this category if acquired principally for the purpose of
selling in the short term. This type of financial liability is measured at fair value at the
time of initial recognition, and attributable transaction costs are recognized in profit or
loss as incurred. Financial liabilities at fair value through profit or loss are measured at
fair value, and changes therein, which take into account any interest expense, are
recognized in profit or loss, and are included in non-operating income or expenses.
3) Other financial liabilities
Financial liabilities not classified as held-for-trading or designated as at fair value
through profit or loss, which comprise loans and borrowings, notes and accounts payable
and other payable, are measured at fair value, plus, any directly attributable transaction
cost at the time of initial recognition. Subsequent to initial recognition, they are measured
at amortized cost calculated using the effective interest method other than significant
interest on short-term loans and payables. Interest expense not capitalized as capital
cost is recognized in profit or loss, and is included in non-operating income or expenses.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
25
4) Derecognition of financial liabilities
The Group derecognizes a financial liability when its contractual obligation has been
discharged, cancelled or expired. The difference between the carrying amount of a
financial liability removed and the consideration paid (including any non-cash assets
transferred or liabilities assumed) is recognized in profit or loss, and is included in
non-operating income or expenses.
5) Offsetting of financial assets and liabilities
The Group presents financial assets and liabilities on a net basis when the Group has the
legally enforceable right to offset and intends to settle such financial assets and liabilities
on a net basis or to realize the assets and settle the liabilities simultaneously.
(iii) Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency and interest rate
exposures. Derivatives are initially measured at fair value. Any attributable transaction costs
thereof are recognized in profit or loss as incurred. Subsequent to initial recognition,
derivatives are measured at fair value, and changes therein are recognized in profit or loss and
are included in the line item of non-operating income. When a derivative is designated as, and
effective for, a hedging instrument, its timing of recognition in profit or loss is determined
based on the nature of the hedging relationship. When the fair value of a derivative instrument
is positive, it is classified as a financial asset, whereas when the fair value is negative, it is
classified as a financial liability.
Embedded derivatives are separated from the host contract and accounted for separately if the
economic characteristics and risks of the non-financial asset’s host contract are not closely
related to the embedded derivatives and the host contract is not measured at FVTPL.
The Group designates its hedging instruments, including derivatives, embedded derivatives,
and non-derivative instruments for a hedge of a foreign currency risk, as a fair value hedge,
cash flow hedge, or hedge of a net investment in a foreign operation. Foreign exchange risks of
firm commitments are treated as fair value hedges.
At initial designated hedging relationships, the Group documents the risk management
objectives and strategy for undertaking the hedge. The Group also documents the economic
relationship between the hedged item and the hedging instrument, including whether the
changes in cash flows of the hedged items and hedging instrument are expected to offset each
other.
The Group shall discontinue hedge accounting prospectively only when the hedging
relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after
taking into account any rebalancing of the hedging relationship, if applicable). This includes
instances when the hedging instrument expires or is sold, terminated or exercised.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
26
Cash flow hedges
When a derivative is designated as a cash flow hedging instrument, the effective portion of
changes in the fair value of the derivative is recognized in other comprehensive income and
accumulated in“other equity－gains (losses) on hedging instruments”. The effective portion
of changes in the fair value of the derivative that is recognized in other comprehensive income
is limited to the cumulative change in fair value of the hedged item, determined on a present
value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of
the derivative is recognized immediately in profit or loss, and is presented in the line item of
non-operating income and expenses in the statement of comprehensive income.
The Group designates only the change in fair value of the spot element of the forward
exchange contract as the hedging instrument in cash flow hedging relationships. The change in
fair value of the forward element of the forward exchange contracts is separately accounted for
as a cost of hedging and accumulated in a separate component within equity.
When the hedged item is recognized in profit or loss, the amount accumulated in equity and
retained in other comprehensive income is reclassified to profit or loss in the same period or in
the periods during which the hedged item affects the profit or loss, and is presented in the same
accounting item with the hedged item recognized in the consolidated statement of
comprehensive income. However, for a cash flow hedge of a forecast transaction recognized as
a nonfinancial asset or liability, the amount accumulated in“other equity－gains (losses) on
hedging instruments in cash flow hedging securities”and retained in other comprehensive
income is reclassified as the initial cost of the nonfinancial asset or liability. In addition, if that
amount is a loss and the Group expects that all or a portion of that loss will not be recovered in
future periods, it shall immediately reclassify the amount in profit or loss.
When hedge accounting for cash flow hedges is discontinued, the amount that has been
accumulated in the cash flow hedge reserve (and costs of hedging) remains in equity until the
hedged future cash flows are no longer expected to occur. Otherwise, that amount would be
adjusted within the carrying amount of the non-financial item. For other cash flow hedges, the
amount is reclassified to profit or loss in the same period or in the periods as the hedged
expected future cash flows affect the profit or loss. However, if the hedged future cash flows
are no longer expected to occur, the amount shall immediately be reclassified from cash flow
reserve (and the cost of hedging reserve) to profit or loss.
(h)
Inventories
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is
based on the weighted-average-cost principle and includes expenditure incurred in acquiring the
inventories, production or transition costs, and other costs incurred in bringing them to their existing
location and condition. In the case of manufactured inventories and work in progress, cost includes
an appropriate share of production overheads based on normal operating capacity.
Net realizable value is the estimated selling price in the ordinary course of business, less, the
estimated costs of completion and selling expenses.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
27
(i)
Investment in associates
Associates are those entities in which the Group has significant influence, but not control or join
control, over the financial and operating policies.
Investments in associates are accounted for using the equity method and are recognized initially at
cost. The cost of the investment includes transaction costs. The carrying amount of the investment in
associates includes goodwill arising from the acquisition, less, any accumulated impairment losses.
The consolidated financial statements include the Group’s share of the profit or loss and other
comprehensive income of equity-accounted investees after adjustments to align the accounting
policies with those of the Group from the date that significant influence commences until the date
that significant influence ceases. When changes in an associate’s equity are not recognized in profit
or loss or other comprehensive income of the associate and such changes do not affect the Group’s
ownership percentage of the associate, the Group recognizes the changes in ownership interests of its
associate in capital surplus in proportion to its ownership.
Unrealized profits resulting from the transactions between the Group and an associate are eliminated
to the extent of the Group’s interest in the associate. Unrealized losses on transactions with associates
are eliminated in the same way, except to the extent that the underlying asset is impaired.
When the Group’s share of losses exceeds its interest in associates, the carrying amount of the
investment, including any long-term interests that form part thereof, is reduced to zero, and the
recognition of further losses is discontinued except to the extent that the Group has an obligation or
has made payments on behalf of the investee.
The Group shall discontinue the use of the equity method from the date when its investment ceases to
be an associate or a joint venture. The Group shall measure the retained interest at fair value. The
difference between the fair value of retained interest and proceeds from disposal, and the carrying
amount of the investment at the date the equity method was discontinued is recognized in profit or
loss. The Group shall account for all the amounts previously recognized in other comprehensive
income in relation to that investment on the same basis as would have been required if the associates
had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in
other comprehensive income would be reclassified to profit or loss on the disposal of the related
assets or liabilities, the entity shall reclassify the gain or loss from equity to profit or loss when the
equity method is discontinued. If an entity’s ownership interest in an associate or a joint venture is
reduced while the entity continues to apply the equity method, the entity shall reclassify the
proportion of the gain or loss that had previously been recognized in other comprehensive income
relating to that reduction in ownership interest to profit or loss.
If an investment in an associate becomes an investment in a joint venture or an investment in a joint
venture becomes an investment in an associate, the Group shall continue to apply the equity method
without remeasuring the retained interest.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
28
When the Group subscribes to additional shares in an associate at a percentage different from its
existing ownership percentage, the resulting carrying amount of the investment differs from the
amount of the Group’s proportionate interest in the net assets of the associate. The Group records
such a difference as an adjustment to investments with the corresponding amount charged or credited
to capital surplus, however, when the balance of the capital surplus arising from the investment was
insufficient, the difference charged or credited to retained earnings. If the Group’s ownership interest
is reduced due to the additional subscription to the shares of associate by other investors, the
proportionate amount of the gains or losses previously recognized in other comprehensive income in
relation to that associate shall be reclassified to profit or loss on the same basis as would be required
if the associate had directly disposed of the related assets or liabilities.
(j)
Joint venture
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement
(i.e. joint ventures) have rights to the net assets of the arrangement. A joint venture shall recognize
its interest in a joint venture as an investment and shall account for that investment using the equity
method in accordance with IAS 28“Investments in Associates and Joint Ventures”, unless, the
entity is exempted from applying the equity method as specified in that Standard.
When assessing the classification of a joint arrangement, the Group shall consider the structure and
legal form of the arrangement, the terms in the contractual arrangement and other facts and
circumstances. The Group had previously reviewed the contractual structure of the joint
arrangement, and has now decided to reclassify the investments in“Jointly Controlled Entities”to
“Joint Ventures”. Although the investments have been reclassified, they are still recorded under
the equity method. Thus, there is no effect in the recognized assets, liabilities and other
comprehensive income.
(k) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses. Cost includes expenditure that is directly attributed to the
acquisition of the asset. The cost of the software is capitalized as part of the property, plant and
equipment if the purchase of the software is necessary for the property, plant and equipment to
be capable of operating.
Each part of an item of property, plant and equipment with a cost that is significant in relation
to the total cost of the item shall be depreciated separately, unless the useful life and the
depreciation method of a significant part of an item of property, plant and equipment are the
same as the useful life and depreciation method of another significant part of that same item.
The gain or loss arising from the derecognition of an item of property, plant and equipment
shall be determined as the difference between the net disposal proceeds, if any, and the carrying
amount of the item, and it shall be recognized as other gains and losses.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
29
(ii) Subsequent cost
Subsequent expenditure is capitalized only when it is probable that the future economic
benefits associated with the expenditure will flow to the Group. The carrying amount of those
parts that are replaced is derecognized. Ongoing repairs and maintenance are expensed as
incurred.
(iii) Depreciation
The depreciable amount of an asset is determined after deducting its residual amount, and it
shall be allocated on a systematic basis over its useful life. Items of property, plant and
equipment with the same useful life may be grouped in determining the depreciation charge.
The remainder of the items may be depreciated separately. The depreciation charge for each
period shall be recognized in profit or loss.
Land has an unlimited useful life and therefore is not depreciated.
The estimated useful lives for the current and comparative years of significant items of
property, plant and equipment are as follows:
1) Buildings: 7~50 years
2) Building improvement: 2~20 years
3) Machinery and equipment: 1~14 years
4) Research equipment: 3~10 years
5) Mold equipment: 0.5~5 years
6) Other equipment: 1~10 years
Depreciation methods, useful lives, and residual values are reviewed at each reporting date. If
expectations differ from the previous estimates, the change is accounted for as a change in an
accounting estimate.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
30
(l) Leases
(i)
Identifying a lease
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the Group assesses whether:
1)
2)
3)
the contract involves the use of an identified asset – this may be specified explicitly or
implicitly, and should be physically distinct or represent substantially all of the capacity
of a physically distinct asset. If the supplier has a substantive substitution right, then the
asset is not identified; and
the Group has the right to obtain substantially all of the economic benefits from use of the
asset throughout the period of use; and
the Group has the right to direct the use of the asset when it has the decision-making
rights that are most relevant to changing how and for what purpose the asset is used. In
rare cases where the decision about how and for what purpose the asset is used is
predetermined, the Group has the right to direct the use of an asset if either:
－
－
the Group has the right to operate the asset and the providers do not have the right
to vary; or
the Group designed the asset in a way that predetermines how and for what purpose
it will be used.
At inception or on reassessment of a contract that contains a lease component, the Group
allocates the consideration in the contract to each lease component on the basis of their relative
stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the
Group has elected not to separate non-lease components and account for the lease and
non-lease components as a single lease component.
(ii) As a lessee
The Group recognizes a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment
losses, if any, and adjusted for certain remeasurements of the lease liability.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
31
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease or, if
that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the
Group uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
－
fixed payments, including in-substance fixed payment;
－
－
－
variable lease payments that depend on an index or a rate, initially measured using the
index or rate as at the commencement date;
amounts expected to be payable under a residual value guarantee; and
payments for purchase or termination options that are reasonably certain to be exercised.
The lease liability is measured at amortized cost using the effective interest method. It is
remeasured when:
－
－
－
－
there is a change in future lease payments arising from the change in an index or rate; or
there is a change in the Group’s estimate of the amount expected to be payable under a
residual value guarantee; or
there is a change in the lease term resulting from a change of its assessment on whether it
will exercise an option to purchase the underlying asset, or
there is a change of its assessment on whether it will exercise an extension or termination
option; or
－
there is any lease modification
When the lease liability is remeasured, other than lease modifications, a corresponding
adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the
carrying amount of the right-of-use asset has been reduced to zero.
When the lease liability is remeasured to reflect the partial or full termination of the lease for
lease modifications that decrease the scope of the lease, the Group accounts for the
remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset
to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or
loss relating to the partial or full termination of the lease.
The Group presents right-of-use assets that do not meet the definition of investment and lease
liabilities as a separate line item respectively in the statement of financial position.
The Group has elected not to recognize right-of-use assets and lease liabilities for short-term
leases of machinery and office equipment that have a lease term of 12 months or less and leases
of low-value assets. The Group recognizes the lease payments associated with these leases as
an expense on a straight-line basis over the lease term.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
32
(iii) As a lessor
When the Group acts as a lessor, it determines at lease commencement whether each lease is a
finance lease or an operating lease. To classify each lease, the Group makes an overall
assessment of whether the lease transfers to the lessee substantially all of the risks and rewards
of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is
a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group
considers certain indicators such as whether the lease is for the major part of the economic life
of the asset.
(m) Intangible assets
(i) Goodwill
1)
Initial recognition
Goodwill arising from acquisition of subsidiaries is included in intangible assets. The
measurement of initial recognition of goodwill, please refer to note (4)(u).
2)
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses.
Goodwill related to an investment accounted for using equity method is included in the
carrying amount of the investment, and not allocated to any asset, including goodwill,
forms part of the carrying amount of the investment accounted for using the equity
method.
(ii) Research & Development
During the research phase, activities are carried out to obtain and understand new scientific or
technical knowledge. Expenditures during this phase are recognized in profit or loss as
incurred.
Expenditures arising from the development phase shall be recognized as an intangible asset if
all the conditions described below can be demonstrated; otherwise, they will be recognized in
profit or loss as incurred.
1)
2)
3)
The technical feasibility of completing the intangible asset so that it will be available for
use or sale.
Its intention to complete the intangible asset and use or sell it.
Its ability to use or sell the intangible asset.
4) How the intangible asset will generate probable future economic benefits.
5)
The availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
33
6)
Its ability to measure reliably the expenditure attributable to the intangible asset during its
development.
Capitalized expenditure arising from the development phase is measured at cost less
accumulated amortization and accumulated impairment losses.
(iii) Other intangible assets
Other intangible assets that are acquired by the Group are measured at cost, less accumulated
amortization and any accumulated impairment losses.
(iv) Subsequent expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure, including expenditure
on internally generated goodwill and brands, is recognized in profit or loss as incurred.
(v) Amortization
The amortizable amount is the cost of an asset, or other amount substituted for cost, less its
residual value.
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful
lives of intangible assets, other than goodwill and intangible assets with all indefinite useful life,
from the date that they are available for use. The estimated useful lives for the current and
comparative periods are as follows:
1)
Patents: the shorter of contract period and estimated useful lives
2) Royalty: amortized by contract period
3) Computer software: 1~7 years
4) Copyright: 10 years
The residual value, the amortization period, and the amortization method for an intangible asset
with a finite useful life shall be reviewed at least annually at each fiscal year-end. Any change
shall be accounted for as changes in accounting estimates.
(n)
Impairment of non-derivative financial assets
Non-derivative financial assets except for inventories, deferred tax assets, assets arising from
employee benefits are assessed at the end of each reporting period whether there is any indication
that an asset may be impaired. If any such indication exists, the Group shall estimate the recoverable
amount of the asset. If it is not possible to determine the recoverable amount (fair value less cost to
sell and value in use) for the individual asset, then the Group will have to determine the recoverable
amount for the asset's cash-generating unit.
The Group assesses goodwill and intangible assets, which have indefinite useful lives and are not
available for use, on an annual basis and recognizes an impairment loss on excess of carrying value
over the recoverable amount.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
34
The recoverable amount for an individual asset or a cash-generating unit is the higher of its fair value,
less costs to sell and its value in use. If, and only if, the recoverable amount of an asset is less than its
carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. That
reduction is an impairment loss. An impairment loss shall be recognized immediately in profit or
loss.
For the purpose of impairment testing, goodwill acquired in a business combination shall, from the
acquisition date, be allocated to each of the acquirer’s cash-generating units, or groups of
cash-generating units that are expected to benefit from the synergies of the combination, irrespective
of whether other assets or liabilities of the acquire are assigned to those units or group of units. If
the carrying amount of the cash-generating units exceeds the recoverable amount of the unit, the
entity shall recognize the impairment loss and the impairment loss shall be allocated to reduce the
carrying amount of each asset in the unit. Reversal of an impairment loss for goodwill is prohibited.
The Group assesses at the end of each reporting period whether there is any indication that an
impairment loss recognized in prior periods for an asset other than goodwill may no longer exist or
may have decreased. An impairment loss recognized in prior periods for an asset other than
goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine
the asset’s recoverable amount since the last impairment loss was recognized. If this is the case, the
carrying amount of the asset shall be increased to its recoverable amount. That increase is a reversal
of an impairment loss.
(o) Provisions
A provision is recognized if, as a result of a past event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is probably that an outflow of economic benefits will
be required to settle the obligation. Provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects the current market assessments of the time value of money
and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
A provision for warranties is recognized when the underlying products or services are sold. The
provision is based on historical warranty data and a weighting of all possible outcomes against their
associated probabilities.
(p) Treasury stock
Repurchased shares are recognized under treasury shares (a contra-equity account) based on its
repurchase price (including all directly accountable costs), and net of tax. Gains on disposal of
treasury shares should be recognized under Capital Reserve – Treasury Shares Transactions; losses
on disposal of treasury shares should be offset against existing capital reserves arising from similar
types of treasury shares. If there are insufficient capital reserves to be offset against, then such
losses should be accounted for under retained earnings. The carrying amount of treasury shares
should be calculated using the weighted average different types of repurchase.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
35
During the cancellation of treasury shares, Capital Reserve – Share Premiums and Share Capital
should be debited proportionately. Gains on cancellation of treasury shares should be recognized
under existing capital reserves arising from similar types of treasury shares; losses on cancellation of
treasury shares should be offset against existing capital reserves arising from similar types of treasury
shares. If there are insufficient capital reserves to be offset against, then such losses should be
accounted for under retained earnings.
(q) Revenue from contracts with customers
Revenue is measured based on the consideration to which the Group expects to be entitled in
exchange for transferring goods or services to a customer. The Group recognizes revenue when it
satisfies a performance obligation by transferring control of a good or a service to a customer. The
accounting policies for the Group’s main types of revenue are explained below.
i) Sale of goods
The Group manufactures and sells electronic products to electronic products brand vendor. The
Group recognizes revenue when control of the products has transferred, being when the products
are delivered to the customer, the customer has full discretion over the channel and price to sell
the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of
the products. Delivery occurs when the products have been shipped to the specific location, the
risks of obsolescence and loss have been transferred to the customer, and either the customer has
accepted the products in accordance with the sales contract, the acceptance provisions have
lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.
The Group assesses sales discounts based on historical experience, management's judgment and
other known reasons. Such allowances are recognized as a deduction of sales revenue in the
same period in which sales are made. The aforementioned provisions are expected to settle over
the next year. A refund liability is recognized for expected discounts payable to customers in
relation to sales made until the end of the reporting period. No element of financing is deemed
present as the sales of electronic products are made with a credit term which is consistent with
the market practice.
A receivable is recognized when the goods are delivered as this is the point in time that the
Group has a right to an amount of consideration that is unconditional.
ii) Financing components
The Group does not expect to have any contracts where the period between the transfer of the
promised goods or services to the customer and payment by the customer exceeds one year. As a
consequence, the Group does not adjust any of the transaction prices for the time value of
money.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
36
(r) Employee benefits
(i) Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognized as an
employee benefit expense in profit or loss in the periods during which services are rendered by
employees.
(ii) Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The Group’s net obligation in respect of defined benefit pension plans is calculated separately
for each plan by estimating the amount of future benefit that employees have earned in return
for their service in the current and prior periods; that benefit is discounted to determine its
present value. The fair value of any plan assets is deducted. The discount rate is the yield at
the reporting date on government bonds that have maturity dates approximating the terms of
the Group’s obligations and that are denominated in the same currency in which the benefits
are expected to be paid.
The calculation of defined benefit obligation is performed annually by a qualified actuary using
the projected unit credit method. When the calculation results in a benefit to the Group, the
recognized asset is limited to the total of the present value of economic benefits available in the
form of any future refunds from the plan or reductions in future contributions to the plan. In
order to calculate the present value of economic benefits, consideration is given to any
minimum funding requirements that apply to any plan in the Group. An economic benefit is
available to the Group if it is realizable during the life of the plan, or on settlement of the plan
liabilities.
If the benefits of a plan are improved, the pension cost incurred from the portion of the
increased benefit relating to past service by employees, is recognized immediately in profit or
loss.
Re-measurement of net defined benefit liability (asset) (including actuarial gains, losses and the
return on plan asset and changes in the effect of the asset ceiling, excluding any amounts
included in net interest) is recognized in other comprehensive income (loss). The effect of
re-measurement of the defined benefit plan is charged to retained earnings.
The Group recognizes gains or losses on the curtailment or settlement of a defined benefit plan
when the curtailment or settlement occurs. The gain or loss on curtailment comprises any
resulting change in the fair value of plan assets and change in the present value of defined
benefit obligation.
(iii) Short term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
37
A liability is recognized for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee, and the obligation can be
estimated reliably.
(s) Share-based payment
The grant-date fair value of share-based payment awards granted to employee is recognized as
employee expenses, with a corresponding increase in equity, over the period that the employees
become unconditionally entitled to the awards. The amount recognized as an expense is adjusted to
reflect the number of awards which the related service and non-market performance conditions are
expected to be met, such that the amount ultimately recognized as an expense is based on the number
of award that meet the related service and non-market performance conditions at the vesting date.
For share-based payment awards with non-vesting conditions, the grant-date fair value of the
share-based payment is measured to reflect such conditions, and there is no true-up for differences
between expected and actual outcomes.
(t)
Income taxes
Income tax expenses include both current taxes and deferred taxes. Except for expenses related to
business combinations or recognized directly in equity or other comprehensive income, all current
and deferred taxes shall be recognized in profit or loss.
Current taxes include tax payables and tax deduction receivables on taxable gains (losses) for the
year calculated using the statutory tax rate on the reporting date or the actual legislative tax rate, as
well as tax adjustments related to prior years.
Deferred taxes arise due to temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases. Deferred taxes shall not be
recognized for the following exceptions:
(i) Assets and liabilities that are initially recognized but are not related to the business
combination and have no effect on net income or taxable gains (losses) during the transaction.
(ii) Temporary differences arising from equity investments in subsidiaries or joint ventures where
there is a high probability that such temporary differences will not reverse.
(iii) Initial recognition of goodwill.
Deferred tax assets and liabilities shall be measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled based on tax rates that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities may be offset against each other if the following criteria are met:
(i) The entity has the legal right to settle tax assets and liabilities on a net basis; and
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
38
(ii)
the taxing of deferred tax assets and liabilities fulfill one of the below scenarios:
1)
2)
levied by the same taxing authority; or
levied by different taxing authorities, but where each such authority intends to settle tax
assets and liabilities (where such amounts are significant) on a net basis every year of the
period of expected asset realization or debt liquidation, or where the timing of asset
realization and debt liquidation is matched.
A deferred tax asset should be recognized for the carry-forward of unused tax losses, unused tax
credits, and deductible temporary differences to the extent that it is probable that future taxable profit
will be available against which the unused tax losses, unused tax credits, and deductible temporary
differences can be utilized. Such unused tax losses, unused tax credits, and deductible temporary
differences shall also be re-evaluated every year on the financial reporting date, and they shall be
adjusted based on the probability that future taxable profit that will be available against which the
unused tax losses, unused tax credits, and deductible temporary differences can be utilized.
The surtax on unappropriated earnings is recoded as current tax expense in the following year after
the resolution to appropriate retained earnings is approved in a stockholders’ meeting.
(u) Business combination
Goodwill is measured as an aggregation of the consideration transferred (which generally is
measured at fair value at the acquisition date) and as an amount of any non-controlling interest in the
acquiree, net of the acquisition-date amounts of the identifiable assets acquired and liabilities
assumed (generally at fair value). If the residual balance is negative, the Group shall re-assess
whether it has correctly identified all of the assets acquired and liabilities assumed, and recognize a
gain on the bargain purchase thereafter.
All the transaction costs incurred for the business combination are recognized immediately as the
Group’s expenses when incurred, except for the issuance of debt or equity instruments.
If the business combination is achieved in stages, the Group shall measure any non-controlling equity
interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of
the acquiree’s identifiable net assets. Other non-controlling interest is measured (1) at fair value at
the acquisition date or (2) by using other valuation techniques acceptable under the IFRS as endorsed
by the FSC.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
39
In a business combination achieved in stages, the Group shall re-measure its previously held equity
interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss, if any,
in profit or loss. In prior reporting periods, the Group may have recognized changes in the value of
its equity interest in the acquiree in other comprehensive income. If so, the amount that was
recognized in other comprehensive income shall be recognized on the same basis as would be
required if the Group had disposed directly of the previously held equity interest. If the disposal of
the equity interest required a reclassification to profit or loss, such an amount shall be reclassified to
profit or loss.
If the initial accounting for a business combination is incomplete by the end of the reporting period
in which the combination occurs, the Group shall report in its financial statements provisional
amounts for the items for which the accounting is incomplete. During the measurement period, the
Group shall retrospectively adjust the provisional amounts recognized at the acquisition date, or
recognize additional assets or liabilities to reflect new information obtained about facts and
circumstances that existed as of the acquisition date. The measurement period shall not exceed one
year from the acquisition date.
(v) Earnings per share
The Group discloses the basic and diluted earnings per share attributable to ordinary equity holders
of the Group. The calculation of basic earnings per share is based on the profit attributable to the
ordinary shareholder of the Group divided by weighted average number of ordinary shares
outstanding. The calculation of diluted earnings per share is based on the profit attributable to
ordinary shareholders of the Group divided by weighted average number of ordinary shares
outstanding after adjustment for the effects of all dilutive potential ordinary shares. Dilutive potential
ordinary shares comprise employee compensation not yet approved by the Board of Directors.
(w) Operating segments
An operating segment is a component of the Group that engages in business activities from which it
may incur revenues and incur expenses (including revenues and expenses relating to transactions
with other components of the Group). Operating results of the operating segment are regularly
reviewed by the Group’s chief operating decision maker to make decisions about resources to be
allocated to the segment and assess its performance. Each operating segment consists of standalone
financial information.
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:
The preparation of the consolidated financial statements in conformity with the IFRSs endorsed by the
FSC requires management to make judgments, estimates, and assumptions that affect the application of the
accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may
differ from these estimates.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
40
The management continues to monitor the accounting estimates and assumptions. The management
recognizes any changes in accounting estimates during the period and the impact of those changes in
accounting estimates in the next period.
There are no critical judgments in applying the accounting policies that have significant effect on the
amounts recognized in the consolidated financial statements.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment to the carrying amounts of assets and liabilities within the next financial year is as
follows. Those assumptions and estimation have been updated to reflect the impact of COVID-19
pandemic.
(a) Recognition and measurement of refund liabilities
Because of the sales returns and allowances, the Group records a refund liabilities (sales returns and
allowance provisions) for estimated returns and other allowances in the same period the related
revenue is recorded. The estimate is made based on historical experience, market and economic
conditions, and any other known factors using the expected value or the most likely amount and it
could be different from actual sales returns and allowances, therefore, the management periodically
reviews the adequacy of the estimation used.
(b) Valuation of inventories
As inventories are stated at the lower of cost or net realizable value, the net realizable value of the
inventory is mainly determined based on assumptions as to future demand within a specific time
horizon. Due to the rapid industrial changes, there may be significant differences in the net realizable
value of inventories. Refer to note (6)(f) for further description of the valuation of inventories.
(6) Explanation of significant accounts:
(a) Cash and cash equivalents
Cash on hand
Checking accounts and demand deposits
Time deposits
Bonds purchased under resale agreements
December
31, 2020
December
31, 2019
$
18,637
19,217
19,537,842
10,455,819
69,560,444
56,034,361
10,000
50,000
$
89,126,923
66,559,397
Please refer to note (6)(aa) for the disclosure of the exchange rate risk, the interest rate risk and the
fair value sensitivity analysis of the financial assets and liabilities of the Group.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
41
(b) Financial assets and liabilities at fair value through profit or loss
Mandatorily measured at fair value through profit or loss:
Non-derivative financial assets
Structured deposits
Stock unlisted in domestic markets
Fund in domestic or foreign markets
Derivative instruments not used for hedging
Foreign exchange contracts
Swap contracts
Total
Current
Non-current
Financial liabilities held-for-trading:
Derivative instruments not used for hedging
Foreign exchange contracts
Swap contracts
December
31, 2020
December
31, 2019
$
$
$
$
2,234,184
100,190
101,419
-
11,069
2,446,862
2,245,254
201,608
2,446,862
1,330,458
24,350
91,009
466
15,455
1,461,738
1,346,379
115,359
1,461,738
December
31, 2020
December
31, 2019
$
$
130,865
5,854
5,752
-
136,617
5,854
The Group uses derivative instruments to hedge foreign currency risk the Group is exposed to arising
from its operating activities. The following derivative instruments not applied hedge accounting were
classified as mandatorily measured at fair value through profit or loss and held-for-trading financial
liabilities :
December 31, 2020
Contract amount
(in thousand)
Currency
Maturity date
Derivative financial assets:
Foreign exchange contracts:
Swap contracts:
Currency swap
USD 37,000
USD to TWD
January 13~February 26, 2021
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
42
December 31, 2020
Contract amount
(in thousand)
Currency
Maturity date
Derivative financial liabilities:
Foreign exchange contracts:
Forward exchange sold
EUR 49,000
Forward exchange purchased USD 122,300
EUR to USD
January 13~April 14, 2021
USD to BRL
January 7~August 26, 2021
Swap contracts:
Currency swap
Derivative financial assets:
Foreign exchange contracts:
Forward exchange purchased
Swap contracts:
Currency Swap
Derivative financial liabilities:
Foreign exchange contracts:
Forward exchange sold
Forward exchange purchased
USD 45,500
USD to TWD March 12~April 29, 2021
December 31, 2019
Contract amount
(in thousand)
Currency
Maturity date
USD 84,500
USD to BRL
January 14~May 26, 2020
USD 55,000
USD to TWD
January 13~March 30, 2020
EUR 21,000
EUR to USD
January 10~March 13, 2020
USD 1,000
USD to BRL
September 23, 2020
For the market risk related to the financial instruments, please refer to note (6)(aa).
As of December 31, 2020 and 2019, the Group did not provide any aforementioned financial assets
as collaterals for its loans.
(c) Financial assets at fair value through other comprehensive income
Equity investments at fair value through other comprehensive
income:
Stock listed in domestic markets
Stock listed in foreign markets
Stock unlisted in domestic markets
Stock unlisted in foreign markets
Total
December
31, 2020
December
31, 2019
$
$
1,972,849
491,243
2,152,542
200,377
4,817,011
2,055,890
448,110
2,246,932
177,121
4,928,053
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
43
The purpose that the Group invests in the above-mentioned equity securities is for long-term
strategies, but rather for trading purpose. Therefore, these equity securities are designated as at
FVOCI.
For the year ended December 31, 2020, the Group had sold all of its shares, measured at fair value
through other comprehensive income, in Global BioPharma, Inc. and Taiwan Sanga Co., Ltd. The
fair value of the shares upon disposal amounted to $52,105, resulting in a cumulative loss of $57,895,
which was reclassified from other comprehensive income to retained earnings.
For the year ended December 31, 2019, the Group had sold all of its shares in PrimeSensor
Technology Inc. and Macroblock Inc., and Innolux Corporation ( “ Innolux ” ), which were
measured at fair value through other comprehensive income. The fair value of the shares was
$845,202 when disposed and the cumulative losses amounted to $4,824,910, which had been
transferred to retained earnings from other comprehensive income.
If there is an increase (decrease) in the market price by 5% on the reporting date of the equity
securities hold by the Group, the increase (decrease) in other comprehensive income (pre-tax) for the
years ended December 31, 2020 and 2019, will be $240,851 and $246,403, respectively. These
analyses are performed on the same basis for the period and assume that all other variables remain
the same.
For the Group’s information of market risk, please refer to note (6)(aa).
As of December 31, 2020 and 2019, the Group did not provide any financial assets at fair value
through other comprehensive income as collaterals for its loans.
(d) Financial instruments used for hedging
(i)
Financial instruments used for hedging were as follows:
Cash flow hedge:
Financial assets used for hedging:
Forward exchange contracts
Financial liabilities used for hedging:
Forward exchange contracts
(ii) Cash flow hedge
December
31, 2020
December
31, 2019
$
$
-
61
2,192
4,932
The Group’s strategy is to use forward exchange contracts to hedge its foreign currency
exposure in respect of forecasted future sales.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
44
As of December 31, 2020 and 2019, the amounts related to the items designated as hedge
instruments were as follows:
Contract amount
(in thousands)
December 31, 2020
Average
Currency
Maturity period
strike price
Derivative financial
liabilities used for
hedging
Foreign exchange
contracts:
Forward exchange
EUR 6,000
EUR to USD
April 29~
1.2192
sold
Derivative financial
assets used for
hedging
Foreign exchange
contracts:
Forward exchange
sold
Derivative financial
liabilities used for
hedging
Foreign exchange
contracts:
Forward exchange
sold
Forward exchange
purchased
June 29, 2021
December 31, 2019
Average
Contract amount
(in thousands)
Currency
Maturity period
strike price
EUR 6,000
EUR to USD
February 14~
1.1278
June 29, 2020
EUR 39,000
EUR to USD
January 31~
1.1327
December 29, 2020
USD 3,589
USD to MXN
February 26~
19.507
March 30, 2020
(iii) For the years ended December 31, 2020 and 2019, the ineffective portion of cash flow hedge
recognized in profits (losses) amounted of $67 and $(5,934), respectively, recorded as“other
gains and losses, net”.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
45
(iv) For the years ended December 31, 2020 and 2019, the profits (losses) of changes in fair value
of derivative financial instruments used for hedging reclassified from other equity to profit or
loss is recognized as revenue in the statement of comprehensive income. Please refer to note
(6)(z).
(e) Notes and accounts receivable
Notes receivables from operating activities
December
31, 2020
December
31, 2019
$
40,059
42,418
Accounts receivables – measured at amortized cost
197,650,813
167,615,217
Accounts receivables – fair value through other comprehensive
income
Less: allowance for uncollectible accounts
Notes and accounts receivable
Notes and accounts receivable – related parties
38,429,954
28,007,745
236,120,826
195,665,380
(3,910,928)
(3,928,716)
$ 232,209,898
191,736,664
$ 231,830,964
191,692,152
$
378,934
44,512
The Group has assessed a portion of its trade receivables that was held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial assets;
therefore, such trade receivables were measured at fair value through other comprehensive income.
The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of
lifetime expected loss provision for all receivables. To measure the expected credit losses, trade
receivables have been grouped based on shared credit risk characteristics and the days past due, as
well as incorporated forward looking information.
(i) The loss allowance provision of IT product segment of the Group was determined as follows:
December 31, 2020
Carrying
amount of notes
and accounts
receivable
$
$
213,584,823
11,779,368
3,817,340
229,181,531
Weighted- ave
rage
ECL rate
0%
0.57%
100%
Credit rating
Level A
Level B
Level C
Lifetime ECLs
-
66,757
3,817,340
3,884,097
Credit-
impaired
No
No
Yes
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
46
December 31, 2019
Credit rating
Level A
Level B
Level C
Carrying
amount of notes
and accounts
receivable
$
$
172,692,844
13,008,324
3,817,340
189,518,508
Weighted-
average
ECL rate
0%
0.55%
100%
Lifetime ECLs
-
71,101
3,817,340
3,888,441
Credit-
impaired
No
No
Yes
(ii) The loss allowance provision of strategically integrated product segment of the Group was
determined as follows:
December 31, 2020
Credit rating
Level A
Level B
Level C
Level D
Level E
Carrying
amount of notes
and accounts
receivable
$
$
2,705,044
3,772,573
443,092
-
18,586
6,939,295
Weighted-
average
ECL rate
0%
0.10%
1.00%
100%
Lifetime ECLs
-
-
3,814
4,431
18,586
26,831
December 31, 2019
Credit rating
Level A
Level B
Level C
Level D~E
Level F
Carrying
amount of notes
and accounts
receivable
$
$
2,620,806
2,713,406
783,004
-
29,656
6,146,872
Weighted-
average
ECL rate
0%
0.10%
1.00%
-
100%
Lifetime ECLs
-
-
2,789
7,830
29,656
40,275
Credit-
impaired
No
No
No
-
Yes
Credit-
impaired
No
No
No
-
Yes
The aging analysis of notes and accounts receivable was determined as follows:
Overdue 1 to 180 days
Overdue 181 to 365 days
December
31, 2020
December
31, 2019
$
2,073,442
1,707,265
104,264
285
$
2,177,706
1,707,550
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
47
The movement in the allowance for notes and accounts receivable was as follows:
Balance at January 1
Impairment losses recognized (reversed)
Amounts written off
Effect of changes in exchange rates
Balance at December 31
2020
3,928,716
$
2019
4,020,603
(18,694)
-
906
(7,790)
(85,907)
1,810
$
3,910,928
3,928,716
Allowance for uncollectible account is the balance of accounts receivable which are uncollectable.
Except for evaluating the situation of the customers’ payment records and widely analyzing the credit
rating of customers, the Group also takes all the necessary procedures for collection. The Group
believes that there is no doubt for the recovery of the due but unimpaired accounts receivable,
therefore, no allowance recognized.
The Group entered into accounts receivable factoring agreements with banks. As of December 31,
2020 and 2019, except for the amount used under the actual sales amount in accordance with certain
agreements, the factoring amount granted by the banks was USD 1,600,000 thousand and EUR
59,700 thousand, USD 1,000,000 thousand and EUR 59,700 thousand, respectively. Based on the
agreements, the Group is not responsible for guaranteeing the ability of the accounts receivable
obligor to make payment when it is affected by credit risk. Thus, this is a non-recourse accounts
receivable factoring. The Group derecognized the above accounts receivable because it has
transferred substantially all of the risks and rewards of their ownership and it does not have any
continuing in involvement in them. After the transfer of the accounts receivable, the Group can
request partial advanced amount, while the interest calculated at an agreed rate is paid to the bank in
the period during the time of receiving advance and the accounts receivable is collected. The
remaining amounts with no advance are received when the accounts receivable are settled by the
customers. As of December 31, 2020, the factored accounts receivable with no advance amounting
$42,550 is accounted for as other receivables. As of December 31, 2019, accounts receivable
factored were recovered.
The Group, customers and banks signed the three-party contracts in which the banks purchase
accounts receivable from the Group. The total amount of the accounts receivable should not exceed
the facility limit provided by the banks to the Group’s customers. Based on the contracts, the banks
have no right to request the Company to repurchase the accounts receivable. Thus, this is a
non-recourse accounts receivable transfer. As of December 31, 2020 and 2019, accounts receivable
factored were recovered and derecognized since the conditions of derecognition were met.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
48
As of December 31, 2020 and 2019, the details of the factored accounts receivable but unsettled were
as follows:
December 31, 2020
Accounts
receivable
factored
(gross)
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivable
Purchaser
Financial
Amount
Collateral
derecognized Interest rate
Institution $ 42,597,772
-
42,555,222
42,550
-
42,597,772 0.58%~0.93%
December 31, 2019
Accounts
receivable
factored
(gross)
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivable
Purchaser
Financial
Amount
Collateral
derecognized Interest rate
Institution $ 25,672,764
-
25,672,764
-
-
25,672,764 2.21%~2.80%
As of December 31, 2020 and 2019, the Group did not provide any aforementioned notes and
accounts receivable as collaterals.
(f)
Inventories
Finished goods
Work in progress
Raw materials
Raw materials in transit
December
31, 2020
23,237,892
$
December
31, 2019
30,269,057
9,630,864
6,455,035
62,694,104
41,213,675
589,099
495,771
$
96,151,959
78,433,538
(i)
For the years ended December 31, 2020 and 2019, inventory cost recognized as cost of sales
amounted to $1,013,470,729 and $946,533,518, respectively.
(ii) The loss due to the write-down of inventories to net realizable value amounted to $97,090 and
$587,759 for the years ended December 31, 2020 and 2019, respectively.
(iii) As of December 31, 2020 and 2019, the Group did not provide any inventories as collaterals
for its loans.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
49
(g)
Investments accounted for using equity method
A summary of the Group’s financial information for equity-accounted investees at the reporting date
is as follows:
Associates
Joint venture
Plus: credit balance of investment in equity
method (other non-current liability)
Less: unrealized profits or losses
(i) Associates
December
31, 2020
December
31, 2019
$
8,036,165
7,410,134
(17,106)
(14,725)
8,019,059
7,395,409
43,177
41,719
(112,311)
(118,042)
$
7,949,925
7,319,086
1)
The fair value of the shares of listed company based on the closing price was as follow:
December
31, 2020
December
31, 2019
Allied Circuit Co., Ltd. (“Allied Circuit”)
$
2,075,813
1,838,621
Avalue Technology Inc. (“Avalue”)
828,286
1,147,839
$
2,904,099
2,986,460
2)
The Group’s share of the net gain (loss) of associates was as follows:
The Group’s share of the gain (loss) of associates
2020
2019
436,165
229,152
3)
The Group’s financial information for investments accounted for using the equity method
that are individually immaterial was as follows:
December
31, 2020
December
31, 2019
Carrying amount of individually immaterial associates
$
8,036,165
7,410,134
The Group’s share of the net income (loss) of associates:
Profit (loss) from continuing operations
Other comprehensive income
Total comprehensive income
2020
2019
436,165
229,152
107,370
(159,440)
543,535
69,712
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
50
4)
5)
For the year ended December 31, 2020, the Group had sold parts of its shares held in
Avalue and Allied Circuit, with a consideration (net of costs of disposal) amounting to
$38,952. The transaction has been completed and the price has been fully received,
wherein the Group recognized a gain of $28,772, which was accounted for as other gain
and loss.
In October 2019, the Group had sold part of its shares held in Avalue, with a
consideration (net of costs of disposal) amounting to $18,033. The transaction has been
completed and the price has been fully recovered, wherein the Group recognized a gain of
$8,990, which was accounted for as other gain and loss.
(ii)
Joint venture
In April 2010, the Group and another company established a jointly controlled entity, Compal
Connector Manufacture Ltd. (“CCM”), and obtained an ownership interest of 51%. CCM’s
actual paid-in capital amounted to USD10,000 thousands. Moreover, in May 2014, the Group
and another company established a jointly controlled entity, Zheng Ying Electronics
(Chongqing) Co., Ltd., (“Zheng Ying”), and obtained an ownership interest of 51%. Zheng
Ying’s actual paid-in capital amounted to USD 2,500 thousands.
The Group’s financial information for investment accounted for using the equity method that
are individually insignificant was as follows:
December
31, 2020
December
31, 2019
The carrying amount of the Group’s interests in all
individually insignificant joint ventures
$
(17,106)
(14,725)
The Group’s share of the net income (loss) of joint ventures:
Losses from continuing operations (also the total
comprehensive losses)
2020
2019
(508)
(32,144)
(iii) Although the Group is the single largest shareholder of some associates, after a comprehensive
assessment that the remaining shares of these associates are not concentrated in specific
shareholders, the Group is still not able to obtain more than half of the board seats, and it has
not obtained more than half of the voting rights of shareholders attending the shareholders'
meeting. The Group judges that it does not have absolute power and leading ability over the
relevant activities and variable remuneration of these associates, so it assesses that the Group
has no control over these associates.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
51
(iv) As of December 31, 2020 and 2019, the Group did not provide any investments accounted for
using equity method as collaterals for its loans.
(h) Changes in subsidiaries’ equity
(i) Changes in subsidiaries’ equity did not result in the Group’s loss of control
1)
Subsidiaries’ employee stock options exercised
CBN issued 45 thousand and 69 thousand new shares because of its employees' exercised
stock options in 2020 and 2019, respectively, which resulted in the reduce of the Group’s
ownership of CBN by 0.03% and 0.07%, respectively.
2)
Issuance of new shares for cash of subsidiaries
The Group purchased newly issued shares of Arcadyan amounting to $323,917 at a
percentage different from its existing ownership percentage in the fourth quarter of 2019,
resulting in a decrease in the ownership of the Group in Arcadyan by 0.37%.
3)
Issuance and cancellation of subsidiaries’ restricted shares
Arcadyan canceled 126 thousand and 84 thousand restricted shares in the years ended
December 31, 2020 and 2019, respectively, which resulted in an increase of 0.01% of the
ownership of the Group in Arcadyan for the both years.
4)
The following summarizes the effect of changes in equity of the parent due to changes in
the ownership interest of subsidiaries:
Capital surplus – changes in ownership interest
in subsidiaries
2020
2019
$
1,735
43,473
(i) Loss control of subsidiaries
The Group had sold all of its shares in CMX, at the amount of $218,133, to a third party in August
2019, resulting in its losing control over CMX. The entire amount had been fully received. The gain
on disposal amounting to $58,107 was recorded as other gains and losses.
The carrying amounts of assets and liabilities of CMX were as follows:
Cash and cash equivalents
Other current assets
Property, plant and equipment
Notes and accounts payable
Other payables
Other current liabilities
Carrying amount net assets
$
74,638
2,918
117,625
(644)
(33,716)
(966)
$
159,855
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
52
(j) Material non-controlling interests of subsidiaries
The material non-controlling interests of subsidiaries were as follows.
Subsidiaries
Arcadyan Technology
Corporation
Main operation place
Taiwan
Percentage of
non-controlling interests
December
December
31, 2019
31, 2020
65%
65%
The following information of the aforementioned subsidiaries have been prepared in accordance with
the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Included in
these information are the fair value adjustment made during the acquisition and relevant difference in
accounting principles between the Group as at the acquisition date. Intra-group transactions were not
eliminated in this information.
Arcadyan’s collective financial information is as follows.
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Non-controlling interests
Sales revenue
Net income
Other comprehensive income
Comprehensive income
Profit, attributable to non-controlling interests
Comprehensive income, attributable to non-controlling interests
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
December
31, 2020
24,721,922
$
December
31, 2019
22,052,835
4,085,304
3,478,150
(15,368,928)
(13,044,806)
(1,476,302)
(1,145,245)
11,961,996
11,340,934
8,024,032
7,625,040
2020
33,765,295
2019
32,897,900
1,630,605
1,356,986
(97,919)
(53,703)
1,532,686
1,303,283
1,033,182
894,962
970,772
859,763
3,352,208
2,496,825
(884,623)
(837,786)
(974,048)
2,779
$
$
$
$
$
$
$
$
Effect of exchange rate changes on cash and cash equivalents
(21,328)
(30,312)
Net increase (decrease) in cash and cash equivalents
$
1,472,209
1,631,506
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
53
(k) Property, plant and equipment
The cost, depreciation, and impairment of the property, plant and equipment of the Group for the
years ended December 31, 2020 and 2019, were as follows:
Buildings
and building
improvement Machinery
Other
equipment
Land
Under
construction
and
prepayment
for purchase of
equipment
Total
$
1,705,220
16,966,779
27,044,641
11,289,433
1,310,558
58,316,631
16,540
1,555,668
2,043,593
1,670,528
2,491,792
7,778,121
-
(40,637)
(781,081)
(484,944)
-
(1,306,662)
222,769
568,695
1,419,898
267,958
(2,479,320)
-
(435)
(530,632)
(1,228,860)
(857,278)
(102,245)
(2,719,450)
$
$
1,944,094
18,519,873
28,498,191
11,885,697
1,220,785
62,068,640
1,772,214
17,020,270
26,201,597
10,642,904
1,003,490
56,640,475
25,888
382,049
1,956,846
1,900,557
1,561,601
5,826,941
(93,905)
(440,934)
(773,288)
(1,003,600)
-
(2,311,727)
-
221,513
406,831
104,464
(1,007,468)
(274,660)
1,023
(216,119)
(747,345)
(354,892)
(247,065)
(1,564,398)
$
1,705,220
16,966,779
27,044,641
11,289,433
1,310,558
58,316,631
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
10,352,434
19,850,259
8,141,591
905,054
2,369,810
1,569,827
(39,988)
(656,216)
(461,903)
(362,391)
(992,208)
(692,969)
10,855,109
20,571,645
8,556,546
10,105,653
18,441,703
7,674,891
802,230
2,524,504
1,778,318
(413,292)
(662,693)
(990,010)
(142,157)
(453,255)
(321,608)
10,352,434
19,850,259
8,141,591
-
-
-
-
-
-
-
-
-
-
38,344,284
4,844,691
(1,158,107)
(2,047,568)
39,983,300
36,222,247
5,105,052
(2,065,995)
(917,020)
38,344,284
1,944,094
7,664,764
7,926,546
3,329,151
1,220,785
22,085,340
1,772,214
6,914,617
7,759,894
2,968,013
1,003,490
20,418,228
1,705,220
6,614,345
7,194,382
3,147,842
1,310,558
19,972,347
Cost:
Balance on January 1, 2020
Additions
Disposals and derecognitions
Reclassifications
Effect of movements in exchange rates
Balance on December 31, 2020
Balance on January 1, 2019
Additions
Disposals and derecognitions
Reclassifications
Effect of movements in exchange rates
Balance on December 31, 2019
Depreciation and impairments loss:
Balance on January 1, 2020
Depreciation for the period
Disposals and derecognitions
Effect of movements in exchange rates
Balance on December 31, 2020
Balance on January 1, 2019
Depreciation for the period
Disposals and derecognitions
Effect of movements in exchange rates
Balance on December 31, 2019
Carrying amounts:
Balance on December 31, 2020
Balance on January 1, 2019
Balance on December 31, 2019
As of December 31, 2020 and 2019, part of the Group’s property, plant and equipment were
provided as collateral for long-term borrowings. Please refer to note (8).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
54
(l) Right-of-use assets
The Group leases many assets including land and buildings, machinery and vehicles. Information
about leases for which the Group as a lessee is presented as below:
Land
Buildings Machinery
Vehicles
and Other
Total
Cost:
Balance on January 1, 2020
$
1,110,813
2,809,991
86,661
88,712
4,096,177
Additions
Deductions
317,808
954,736
-
6,797
1,279,341
(106,518)
(350,896)
(9,460)
(19,825)
(486,699)
Effect of movements in exchange rates
(53,974)
(35,364)
Balance on December 31, 2020
Balance on January 1, 2019
Additions
Deductions
$
$
1,268,129
3,378,467
891,147
1,934,899
245,220
1,142,076
-
(226,448)
Effect of movements in exchange rates
(25,554)
(40,536)
Balance on December 31, 2019
$
1,110,813
2,809,991
(271)
76,930
87,482
9,460
(9,067)
(1,214)
86,661
(715)
(90,324)
74,969
4,798,495
67,569
2,981,097
26,127
1,422,883
(4,403)
(239,918)
(581)
(67,885)
88,712
4,096,177
Depreciation and impairment loss:
Balance on January 1, 2020
Depreciation for the period
Deductions
Effect of movements in exchange rates
Balance on December 31, 2020
Balance on January 1, 2019
Depreciation for the period
Deductions
Effect of movements in exchange rates
Balance on December 31, 2019
Carrying amount:
Balance on December 31, 2020
Balance on January 1, 2019
Balance on December 31, 2019
$
$
$
$
$
$
$
31,587
25,354
659,467
801,567
22,270
12,138
32,681
32,690
746,005
871,749
-
(258,054)
(9,368)
(18,742)
(286,164)
(2,185)
(27,291)
54,756
1,175,689
(291)
24,749
(280)
(30,047)
46,349
1,301,543
-
-
-
-
-
32,106
770,753
22,615
43,834
869,308
-
(104,216)
-
(4,403)
(108,619)
(519)
(7,070)
(345)
(6,750)
(14,684)
31,587
659,467
22,270
32,681
746,005
1,213,373
2,202,778
891,147
1,934,899
1,079,226
2,150,524
52,181
87,482
64,391
28,620
3,496,952
67,569
2,981,097
56,031
3,350,172
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
55
(m) Short-term borrowings
The details of short-term borrowings were as follows:
Unsecured bank loans
Unused credit line for short-term borrowings
Range of interest rates
December
31, 2020
December
31, 2019
$
$
92,838,733
60,951,844
95,910,000
107,077,000
0.25%~2.58%
0.66%~5.05%
For information on the Group’s interest risk, foreign currency risk and liquidity risk, please refer to
note (6)(aa).
(n) Long-term borrowings
The details of long-term borrowings were as follows:
Unsecured bank loans
Unsecured bank loans
Secured bank loans
Less: current portion
Total
Unused credit lines for
long-term borrowings
Unsecured bank loans
Secured bank loans
Less: current portion
Total
Unused credit lines for
long-term borrowings
Currency
TWD
USD
TWD
December 31, 2020
Range of annual
interest rate
0.66%~0.98%
Maturity year
2021~2023
$
Amount
11,900,000
0.69%~0.92%
2021~2022
1%~1.5%
2022~2025
7,205,440
228,913
(8,932,615)
$
10,401,738
$ 15,327,000
December 31, 2019
Currency
TWD
Range of annual
interest rate
0.73%~1.18%
Maturity year
2020~2023
$
Amount
25,650,000
TWD
1.67%
2022
98,438
(18,189,375)
$
7,559,063
$ 12,047,000
For information on the Group’s interest risk, foreign currency risk and liquidity risk, please refer to
note (6)(aa).
The Group pledged property, plant and equipment as collateral for its partial long-term borrowings.
Please refer to note (8).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
56
(o) Unsecured convertible corporate bonds
(i) The Company’s subsidiary, Arcadyan, issued the first domestic unsecured convertible
corporate bonds on June 6, 2019. The details were as follows:
Total convertible corporate bonds issued
Unamortized discounts on corporate bonds payable
Unamortized issuance costs on corporate bonds payable
Balance of corporate bonds payable as of the reporting date
Conversion options included in equity component (classified as
capital surplus and non-controlling interests)
$
$
December
31, 2020
December
31, 2019
$
1,000,000
1,000,000
(18,527)
(31,383)
(1,254)
980,219
(2,125)
966,492
48,667
48,667
Interest expenses
2020
2019
$
13,727
7,919
The effective interest rate of the first issued convertible corporate bonds was 1.3284%.
(ii) The main terms of issuing the above-mentioned convertible corporate bonds was as follows:
1) Coupon rate: 0%
2) Duration: three years (June 6, 2019~June 6, 2022)
3) Repayment
Put option and call option are excluded from the issuance of convertible corporate bonds.
Except that the bondholders convert the bonds to Arcadyan’s common shares or the
bonds are repurchased and cancelled by Arcadyan from the securities firm’s business
office, the bonds will be repaid in cash at par value when the bonds expired.
4)
Terms of conversion
a) The bondholder may opt to have its bonds converted into the Arcadyan’s common
shares, with the approval of Taiwan Depository & Clearing Corporation through
securities firms, at any time between three months after the issuance date
(September 7, 2019) and the day before the maturity date (June 6, 2022), except for
the following:
- The closing period in accordance with the applicable law;
- The period starting from the first day of the first fifteen working days prior to
the date of record for determination wherein the shareholders are entitled to
receive the distributions or rights to subscribe for new shares in a capital
increase for cash, and ends on the date of record for the distribution of the
rights/benefits;
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
57
- The period starts from the date of record of the capital decrease and ends on the
date prior to the trading of the reissuance shares after the capital decrease.
b) Conversion price is determined as NT$98.3 per share upon issuing. Arcadyan paid
cash dividends and issued new shares for cash in 2019; therefore, the conversion
price has been adjusted to $93 per share. Arcadyan distributed cash dividends to
common stocks shareholders with retained earnings and with the additional paid-in
capital in 2020, thereafter, the conversion price has been adjusted to NT$87.7 per
share.
(p) Lease liabilities
The details of leases liabilities were as follows:
Current
Non-current
For the maturity analysis, please refer to note (6)(aa).
The amounts recognized in profit or loss were as follows:
December
31, 2020
December
31, 2019
$
$
377,161
1,910,601
717,021
1,550,067
Interest on lease liabilities
Variable lease payments not included in the measurement of lease
liabilities
Expenses relating to leases of low-value assets or short-term leases
2020
2019
50,534
48,758
3,332
4,579
131,749
117,545
The amounts recognized in the consolidated statement of cash flows for the Group were as follows:
Total cash outflow for leases
(i) Real estate leases
2020
1,032,451
$
2019
1,003,697
The Group leases land leasehold rights and buildings for its office and plant space. The leases
of office space typically run for a period of 1 ~19 years, and of land leasehold rights for 45~50
years.
(ii) Other leases
The Group leases vehicles and equipment with lease terms of 1~5 years.
The Group also leases some equipment and vehicles with contract terms of 1~3 years. These
leases are short-term or leases of low-value items. The Group has elected not to recognize
right-of-use assets and lease liabilities for these leases.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(q) Provisions
Balance on January 1, 2020
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Balance on December 31, 2020
Balance on January 1, 2019
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Balance on December 31, 2019
58
Warranties
$
830,757
$
$
181,789
(142,007)
(489)
870,050
426,981
721,303
(305,236)
(12,291)
$
830,757
Provisions relate to sales of products are assessed based on historical experience, management's
judgment and other known reasons. Such allowances are recognized as a deduction of sales revenue
in the same period in which sales are made. The aforementioned provisions are expected to settle
over the next year.
(r) Employee benefits
(i) Defined benefit plans
Reconciliation of defined benefit obligations at present value and plan assets at fair value were
as follows:
Present value of defined benefit obligations
Fair value of plan assets
Net defined benefit liabilities
December
31, 2020
(1,516,219)
$
December
31, 2019
(1,486,824)
730,046
748,660
$
(786,173)
(738,164)
The Group makes defined benefit plan contributions to the pension fund account with Bank of
Taiwan that provides pensions for employees upon retirement. The plans (covered by the Labor
Standards Law) entitle a retired employee to receive retirement benefits based on years of
service and average salary for the six months prior to retirement.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
59
1) Composition of plan assets
The Group allocates pension funds in accordance with the Regulations for Revenues,
Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds
are managed by the Labor Pension Fund Supervisory Committee. With regard to the
utilization of the funds, minimum earnings in the annual distributions on the final
financial statements shall be no less than the earnings attainable from the amounts
accrued from two-year time deposits with interest rates offered by local banks.
The balance of the Group’s labor pension reserve account in the Bank of Taiwan
amounted to $729,284 (excluding the ending balance of interest receivable) as of
December 31, 2020. For information on the utilization of the labor pension fund assets
including the asset allocation and yield of the fund, please refer to the website of the
Bureau of Labor Funds, Ministry of Labor.
2) Movements in the present value of the defined benefit obligations
The movements in the present value of defined benefit obligations for the Group were as
follows:
Defined benefit obligations on January 1
$
(1,486,824)
2020
Benefit paid by the plan
Current service costs and interest
Remeasurements of net benefit liabilities
76,835
(19,238)
(86,992)
2019
(1,447,375)
50,196
(24,942)
(64,703)
Defined benefit obligations on December 31
$
(1,516,219)
(1,486,824)
3) Movements of the fair value of defined benefit plan assets
The movements in the fair value of the defined benefit plan assets for the Group were as
follows:
Fair value of plan assets on January 1
$
748,660
737,229
2020
2019
Expected return on plan assets
Remeasurements of net benefit plan assets
Contributions paid by the employer
Benefits paid by the plan
Fair value of plan assets on December 31
$
6,675
23,554
27,992
(76,835)
730,046
9,432
23,917
28,278
(50,196)
748,660
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
60
4)
Expenses recognized in profit or loss
The expenses recognized in profit or loss were as follows:
2020
2019
Current service cost
Net interest on the net defined benefit liability
(asset)
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
$
$
$
$
5,955
6,608
12,563
546
679
3,024
8,314
12,563
6,401
9,109
15,510
689
812
3,686
10,323
15,510
5) Actuarial assumptions
The following were the Group’s principal actuarial assumptions at the reporting date:
Discount rate
December 31,
2020
0.50%~0.63%
December 31,
2019
0.90%~1.00%
Future salary increasing rate
3.00%
3.00%
The expected allocation payment made by the Group to the defined benefit plans for the
one year period after the reporting date is $29,531.
The weighted-average lifetime of the defined benefit plan is 9.6~14.00 years.
6)
Sensitivity analysis
If the main actuarial assumptions had changed, the impact on the present value of the
defined benefit obligation shall be as follows:
December 31, 2020
Discount rate
Future salary increasing rate
December 31, 2019
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(36,336)
36,574
(36,821)
37,254
37,683
(35,482)
38,220
(36,089)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
61
Reasonably possible changes at the reporting date to one of the relevant actuarial
assumptions, holding other assumptions constant, would have affected the defined benefit
obligation by the amounts shown above. The method used in the sensitivity analysis is
consistent with the calculation on the net defined benefit liabilities in the balance sheets.
The method and assumption used in the sensitivity analysis is consistent with prior
period.
(ii) Defined contribution plans
The Group allocates 6% of each employee’s monthly wages to the labor pension personal
account at the Bureau of the Labor Insurance in accordance with the provisions of the Labor
Pension Act. Under this defined contribution plan, the Group allocates the labor pension at a
specific percentage to the Bureau of the Labor Insurance without additional legal or
constructive obligations.
The Company and all subsidiaries in domestic recognized the pension costs under the defined
contribution method amounting to $448,617 and $413,479 for the years ended December 31,
2020 and 2019, respectively. Payment was made to the Bureau of Labor Insurance.
Other subsidiaries recognized the pension expenses, basic endowment insurance expenses, and
social welfare expenses amounting to $922,151 and $1,294,677 for the years ended December
31, 2020 and 2019, respectively.
(s)
Income taxes
(i)
Income tax expenses
1)
The amounts of income tax for the years ended December 31, 2020 and 2019, were as
follows:
2020
2019
Current tax expense
Recognized during the period
$
2,837,554
10% surtax on unappropriated earnings
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary
differences
Income tax expense
27,073
(273,959)
2,590,668
2,364,140
294,326
(438,511)
2,219,955
122,536
$
2,713,204
(107,798)
2,112,157
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
62
2)
The amounts of income tax recognized in other comprehensive income for the years
ended December 31, 2020 and 2019, were as follows:
2020
2019
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of the defined benefit
obligation
Unrealized gains (losses) on equity
instruments at fair value through other
comprehensive income
Items that will be reclassified subsequently to
profit or loss:
Foreign currency translation differences of
$
$
(13,173)
(8,157)
15,805
2,632
44,004
35,847
foreign operations
$
(18,727)
(10,678)
3)
The income tax expenses that were reconciled between the actual income tax expenses
and profits before tax for the years ended December 31, 2020 and 2019, were as follows:
Profit before tax
Income tax calculated based on tax rate
Estimated tax effect of tax exemption on investment
income, net
Realized investment loss
Investment tax credit
Changes in temporary differences
Adjustment of estimated difference and others
Surtax on unappropriated earnings
2020
2019
$
$
13,122,716
10,007,876
3,260,548
2,743,666
(209,192)
(60,000)
(273,959)
(637,794)
606,528
27,073
(155,231)
(25,237)
(438,511)
(150,199)
(156,657)
294,326
$
2,713,204
2,112,157
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
63
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2020 and 2019 were as follows:
Deferred tax assets:
$
Balance on January 1, 2020
Recognized in profit or loss
Recognized in other
comprehensive income
Balance on December 31, 2020 $
Balance on January 1, 2019
$
Recognized in profit or loss
Recognized in other
comprehensive income
Balance on December 31, 2019 $
Refund
liabilities
Contract
liabilities
Unrealized
exchange
losses, net
Others
Total
120,603
14,277
59,429
(9,893)
750,213
(94,758)
707,381
1,637,626
(64,966)
(155,340)
- - -
134,880
178,025
49,536
164,955
(57,422)
(105,526)
655,455
163,265
586,948
31,922
674,337
517,703
171,280
31,922
1,514,208
1,023,948
595,280
18,398
18,398
- - -
120,603
59,429
750,213
707,381
1,637,626
Deferred tax liabilities:
Balance on January 1, 2020
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2020
Balance on January 1, 2019
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2019
(iii) Unrecognized deferred tax assets
Unrealized
exchange
gains, net
$
$
$
$
(497,092)
72,102
-
(424,990)
-
(497,092)
-
(497,092)
Others
Total
(512,126)
(39,527)
(15,827)
(567,480)
(478,169)
9,610
(43,567)
(512,126)
(1,009,218)
32,575
(15,827)
(992,470)
(478,169)
(487,482)
(43,567)
(1,009,218)
Deferred tax assets have not been recognized in respect of the following items:
Tax effect of deductible temporary differences
Tax effect of loss carryforward
December 31,
2020
1,143,771
$
December
31, 2019
827,365
$
1,034,072
1,121,433
The Group assesses and considers that some of the income tax reduction items may be
unrealized, hence they are not recognized as deferred tax assets. In addition, according to
Income Tax Act, the loss carryforward are the losses incurred in past 10 years assessed by ROC
tax authorities which can be deducted from the net profit of current year before levied. The
items are not recognized as deferred income tax assets due to the fact that the Group may not
have sufficient taxable income in the future for the losses.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
64
As of December 31, 2020, the tax effects on loss carryforward that have not been recognized as
deferred tax assets were as follows:
Year of loss
2011 (Assessed)
2012 (Assessed)
2013 (Assessed)
2014 (Assessed)
2015 (Assessed)
2016 (Assessed)
2017 (Assessed)
2018 (Assessed/Filed)
2019 (Filed)
2020 (Estimated)
2020 (Estimated)
Expiry year
2021
Deductible amount
$
157,247
2022
2023
2024
2025
2026
2027
2028
2029
2030
2025
642,778
228,258
41,534
636,827
1,420,567
918,085
557,009
381,896
112,602
58,844
$
5,155,647
(iv) Unrecognized deferred tax assets and liabilities related to investments in subsidiaries
The temporary differences associated with investment in subsidiaries were not recognized as
deferred income tax assets and liabilities as the Company has the ability to control the reversal
of these temporary differences which are not expected to reverse in the foreseeable future.
As of December 31, 2020 and 2019, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $1,856,500 and
$1,894,891, respectively.
As of December 31, 2020 and 2019, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $54,151,962
and $53,923,241, respectively.
(v) Examination and approval
The Company’s tax returns for the year through 2018 were assessed by the tax authorities.
The ROC tax authorities have assessed the income tax returns of Rayonnant, Palcom, Gempal,
Hong Jin, Unicore, Raycore, Hippo Screen, Acbel Telecom and Shennona TW through 2019,
of UCGI, Panpal, Hong Ji, Ripal, CBN, Arcadyan, Zhi-Bao, Heng Hao, Mactech, GLB, RBL
through 2018, of TTI through 2017.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
65
(t) Capital and other equities
(i) Ordinary shares
As of December 31, 2020 and 2019, the Company’s authorized common stock consisting of
6,000,000 thousand shares with a par value of 10 New Taiwan dollar per share amounted to
$60,000,000 of which 4,407,147 thousand shares, were issued. All issued shares were paid up
upon issuance.
(ii) Capital surplus
The balances of capital surplus were as follows:
Additional paid-in capital
Treasury share transactions
December
31, 2020
December
31, 2019
$
5,422,060
6,302,490
2,541,906
2,481,885
Difference between consideration and carrying amount arising
from acquisition or disposal of subsidiaries
Recognition of changes in ownership interests in subsidiaries
Changes in equity of associates and joint ventures accounted
36,766
60,850
36,766
59,115
for using equity method
281,231
279,003
$
8,342,813
9,159,259
In accordance with the ROC Company Act, realized capital reserves can only be used to
increase the common stock or distributed as cash dividends after offsetting losses. The
aforementioned capital reserves include share premiums and donation gains. In accordance
with the Securities Offering and Issuance Guidelines, the amount of capital reserves to be
reclassified under share capital shall not exceed 10% of the actual share capital amount.
The Company’s shareholders’ meeting held on June 21, 2019 approved to distribute cash of
$881,429 (representing 0.2 New Taiwan dollars per share), by using the additional paid-in
capital.
The Company’s Board of Directors’ meeting held on March 30, 2020 approved to distribute
cash of $881,429 (representing 0.2 New Taiwan dollars per share), by using the additional
paid-in capital.
The Company’s Board of Directors’ meeting held on March 26, 2021 approved to distribute
cash of $1,762,859 (representing 0.4 New Taiwan dollars per share), by using the additional
paid-in capital. The related information can be accessed through the Market Observation Post
system website after the Board of Directors’ meeting.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
66
(iii) Retained earnings
Based on the Company’s articles of incorporation amended on June 21, 2019, if there is any
profit after closing of books in a given year, the Company shall first defray tax due, cover
accumulated losses and set aside ten percent of it as legal reserve and then set aside or reverse a
special reserve in accordance with laws and regulations. The balance of earnings available for
distribution is composed of the remainder of the said profit and the unappropriated retained
earnings of previous years. The Board of Directors may set aside a certain amount to cope with
the business operation conditions, and shall prepare the proposal for distribution of the balance
amount thereof after a resolution has been adopted and then allocated by the Board of Directors.
The Company authorizes the Board of Directors to distribute all or part of the dividends and
bonuses, capital surplus or legal reserve in cash after a resolution has been adopted by a
majority vote at a meeting of the Board of Directors attended by two-thirds of the total number
of directors; and in addition thereto a report of such distribution shall be submitted to the
General shareholders’ meeting.
Based on the Company’s articles of incorporation before amended on June 21, 2019, if there is
any profit after closing of books in a given year, the Company shall first defray tax due, cover
accumulated losses and set aside ten percent of it as legal reserve and then set aside or reverse a
special reserve in accordance with laws and regulations. The balance of earnings available for
distribution is composed of the remainder of the said profit and the unappropriated retained
earnings of previous years. The earnings appropriation proposal to distribute dividend and
bonus shall be proposed by the Board of Directors and approved by the General Shareholders
Meeting. The rest of the unappropriated retained earnings shall be reserved.
The lifecycle of the industry of the Company is in the growing stage. To consider the need of
the Company for the future capital, capital budget, long-term financial planning, domestic and
foreign competition, the need of shareholders for cash flow and other factors, if there is any
profit after close of books, the dividend and bonus to be distributed to shareholders shall not be
less than thirty percent of profit after tax for such year and the cash dividend allocated by the
Company each year shall not be lower than ten percent of the total dividend (including cash
and share dividend) for such year.
According to the law, when there is a deduction from stockholders' equity (excluding treasury
stock and unearned employee benefit) during the year, an amount equal to the deduction item is
set aside as a special reserve before the earnings are appropriated. A special reserve is made
available for earning distribution only after the deduction of the related shareholders’ equity
has been reversed.
1)
Legal reverse
When a company incurs no loss, it may, in pursuant to a resolution to be adopted by the
shareholders’ meeting as required, distribute its legal reserve by issuing new shares and
distributing stock dividends or distributing cash to shareholders. Only the portion of the
legal reserve which exceeds 25% of the paid-in capital may be distributed.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
67
2)
Special reverse
In accordance with Ruling No. 1010012865 issued by the FSC on April 6, 2012, a portion
of current earnings and previous unappropriated earnings shall be set aside as a special
reserve during earnings distribution. The amount to be set aside should equal the total
amount of contra accounts that are accounted for as deductions to other equity interests.
A portion of previous unappropriated earnings shall be set aside as a special reserve,
which should not be distributed, to account for cumulative changes to other equity
interests pertaining to prior periods. The special reserve shall be made available for
appropriation when the net deductions of other equity interests are reversed in the
subsequent periods.
3)
Earnings distribution
Distribution for the earnings of 2019 was approved in the meeting of the Board of
Directors held on March 30, 2020, and of 2018 was approved by the shareholders during
their annual meeting held on June 21, 2019. The relevant information was as follows:
2019
2018
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed
to common shareholders
$ 1.0
4,407,147
1.0
4,407,147
Distribution for the earnings of 2020 was approved in the meeting of the Board of
Directors held on March 26, 2021. The relevant information was as follows:
2020
Amount
per share
Total
amount
Cash dividends distributed to common shareholders from
the unappropriated earnings
$ 1.2
5,288,576
The related information of the earnings distribution for the year ended December 31,
2020, can be accessed through the Market Observation Post System website after the
related meeting.
(iv) Treasury stock
The subsidiaries of the Company did not sell the ordinary shares of the Company in the years
ended December 31, 2020 and 2019. As of December 31, 2020, Panpal and Gempal,
subsidiaries of the Company, held 50,017 thousand shares of ordinary shares of the Company,
recorded as the Company’s treasury stock, with a book value of 17.6 New Taiwan dollars per
share. The total cost was $881,247. The fair value of the ordinary shares of the Company
was 20.70 and 18.85 New Taiwan dollars per share as of December 31, 2020 and 2019,
respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
68
Pursuant to the Securities and Exchange Act, the number of treasury shares purchased cannot
exceed 10% of the number of shares issued. The total purchase cost cannot exceed the sum of
retained earnings, paid-in capital in excess of par value and realized capital surplus. The
shares purchased for the purpose of transferring to employees shall be transferred within three
years from the date of share repurchase. Those not transferred within the said limit shall be
deemed as not issued by the Company and it should be cancelled. Furthermore, treasury stock
cannot be pledged for debts, and treasury stock does not carry any shareholder rights until it is
transferred.
(v) Other equity interests (net-of-taxes)
Exchange
differences on
transaction of
foreign operation
financial
statements
Unrealized gain
(loss) from
financial assets at
fair value through
other
comprehensive
income
(3,073,441)
(182,054)
161,498
(306,763)
(100,249)
75,529
(45,469)
(6,888,977)
(376,952)
(1,852,952)
(5,606,436)
(1,620,812)
4,936,223
(52,530)
(268,686)
252,170
111,280
Balance on January 1, 2020
$
(3,794,980)
The Company
Subsidiaries
Associates
Balance on December 31, 2020
Balance on January 1, 2019
$
$
The Company
Subsidiaries
Associates
Others
Total
(1,706)
927
(4,103,449)
(3,173,690)
(105,598)
116,029
(779)
(7,266,708)
(1,706)
(7,459,388)
3,315,411
197,934
(157,406)
-
-
-
-
-
Balance on December 31, 2019
$
(3,794,980)
(306,763)
(1,706)
(4,103,449)
(u) Share-based payment
(i) Arcadyan – employee restricted shares
At the meeting held on June 21, 2018, the Arcadyan’s Board of Directors decided to issue
4,500,000 shares of employee restricted shares to Arcadyan full-time employees who meet
certain requirements. The restricted shares have been registered, with and approved by, the
Securities and Futures Bureau of FSC. The Board of Directors decided to issue all the restricted
shares on November 6, 2018, which is also the effective date of the share issuance.
3,500,000 shares of the aforementioned restricted shares are issued without consideration. 30%,
30% and 40% of the 3,500,000 restricted shares are vested when the employees continue to
provide service for at least 2 year, 3 years and 4 years, respectively, from the registration and
the effective date, and at the same time, meet the performance requirement. In addition, when
earnings per share in two consecutive and complete fiscal years from the registration and
effective date are no less than NT$4, and at the same time, the employees with the restricted
shares meet the performance requirement, the other 1,000,000 shares of the restricted shares are
vested 100% at the date the shareholders approved the financial statements for the second fiscal
year. If the earnings per share in two consecutive and complete fiscal years from the
registration and effective date are between NT$3 to NT$4, and at the same time, the employees
with the restricted shares meet the performance requirement, the restricted shares are vested
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
69
75% at the date the shareholders approved the financial statements for the second fiscal year. If
the earnings per share in two consecutive and complete fiscal years from the registration and
effective date are less than NT$3, the employees with restricted shares, whether or not they
meet the performance requirement, no restricted shares are vested at the date the shareholders
approved the financial statements for the second fiscal year. The earnings per share mentioned
above are calculated based on the profit approved by the shareholders and the weighted average
number of ordinary shares outstanding at the date of the restricted shares have been approved
by the authority.
After the issuance, the restricted shares are kept by a trust, which is appointed by Arcadyan,
before they are vested. These restricted shares shall not be sold, transferred, pledged, gifted, or
disposed by any other means, to third parties during the custody period. The voting rights of
these shares are executed by the custodian, and the custodian shall act based on the law and
regulations. If the shares remain unvested after the vesting period, Arcadyan will redeem all the
unvested shares without consideration and cancel the shares thereafter. Restricted shares could
be received in cash and stock dividends, or could be used to participate in cash injection. The
aforementioned new shares are not considered as restricted shares.
The information of Arcadyan’s restricted shares is as follows:
Outstanding shares on January 1
Canceled during the period
Vested during the period
Outstanding shares on December 31
Unit: in thousands of shares
2020
2019
4,416
(126)
(1,984)
2,306
4,500
(84)
4,416
-
As of December 31, 2020 and 2019, the unearned employee benefit was $45,606 and $119,897,
respectively.
The compensation cost related to the restricted shares amounted to $73,545 and $99,719 for the
years ended December 31, 2020 and 2019.
(ii) Arcadyan－cash injection reserved for employees
Arcadyan’s Board of Directors resolve to implement cash injection on April 9, 2019, of which
1,500 thousand shares were reserved for employees. As of December 31, 2019, the relevant
information was as follows:
Grant date
Number of shares granted (in thousands)
Recipients
Vested condition
2019.10.16
1,500
(Note 1)
Vest immediately
(Note 1) Arcadyan’s full-time employees who meet certain requirements.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
70
The compensation cost, recorded as operating expense and cost of sales related to the cash
injection reversed for employees, amounted to $27,000 in 2019.
(iii) TTI – employee stock options
The information about share-based payment of TTI in 2020 and 2019 was as follows:
Grant date
Granted shares (in
thousand)
Contract period
Recipients
Vested condition
Employee stock options
2015.10.29
1,000
7 years
Employees of TTI
Please refer to the issuance terms of the stock options as follows
The issuance terms of the stock options are as follows:
1)
2)
Exercise price: NT$13.5 per share.
Exercisable duration: The employees who received stock options that exceed two years
and meet the performance requirements can exercise a specific percentage in each period
as below. The exercisable duration of the options is seven years. No transfer is
allowed except for inheritance.
Exercisable
Period and performance requirements to exercise options
40 ％
30 ％
The share purchase right is effectively vested after the satisfaction
of 2 conditions: (1) Years of service must exceed 2 years after the
issuance of the right. (2) Upon vesting, the average earnings per
share of TTI for the past 2 years must exceed NT$3. If the
criteria for the said earnings per share are not fulfilled, then the
measurement period will be extended to 3 years; under this
extension, the average of the earnings per share of any 2 years
within the 3 year period must exceed NT$3.
The share purchase right is effectively vested after the satisfaction
of 2 conditions: (1) Years of service must exceed 3 years after the
issuance of the right. (2) Upon vesting, the performance
requirements need to be met, otherwise, the earnings per share of
TTI for the following year must exceed NT$3. If the criteria for
the said earnings per share are not fulfilled, then the measurement
period will be extended to another 1 year; the earnings per share
must exceed NT$3 during the extension period.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
71
Exercisable
Period and performance requirements to exercise options
30 ％
The share purchase right is effectively vested after the satisfaction
of 2 conditions: (1) Years of service must exceed 4 years after the
issuance of the right. (2) Upon vesting, the performance
requirements need to be met, otherwise, the earnings per share of
TTI for the following year must exceed NT$3. If the criteria for
the said earnings per share are not fulfilled, then the measurement
period will be extended to another 1 year; the earnings per share
must exceed NT$3 during the extension period.
The total measurement periods mentioned above may not exceed 6
years.
The earnings per share mentioned above are based on the financial statements that had
been audited and certified by a certified public accountant.
Exercise method: TTI would issue new shares as the options are exercised.
Exercise procedure: In accordance with TTI’s issuance and exercise rules. After receiving
the payment for share options, the entitlement certification of share options exercised is
registered as ordinary shares.
3)
4)
The information on total options issued was as follows:
2020
2019
Weighted-ave
rage exercise
price
(NT dollars)
Weighted-ave
rage exercise
price
(NT dollars)
Shares
(in thousands)
Shares
(in thousands)
13.5 300
13.5 600
13.5
(300)
-
-
-
-
13.5
13.5
(300)
300
-
-
Outstanding shares on
January 1
Canceled during the
period
Outstanding shares on
December 31
Exercisable shares on
December 31
The exercise price range of TTI’s outstanding employee stock options and
weighted-average remaining contractual life of the outstanding options are as follows:
Exercise price range
$
13.5
Weighted average remaining contract period
13.5
2.83
December 31,
2020
December 31,
2019
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
72
The shares of the stock options were all expired due to failure to meet the vested
conditions in 2020.
The compensation cost reversed related to the share-based payment amounted to $970
and $1,326 for the years ended December 31, 2020 and 2019, respectively.
(iv) CBN－employee stock options
At the meeting held on May 30, 2012, May 26, 2014 and May 17, 2016, CBN’s Board of
Directors resolved to issue 1,000,000, 800,000 and 1,500,000 units of employee stock options,
respectively, with an exercisable right of one share of CBN’s ordinary shares per unit. The
information on total options issued was as follows:
1)
The first employee stock option plan
The employee stock options above have been fully exercised in 2017.
2)
The second employee stock option plan
Outstanding shares on January 1
Exercised during the period
Outstanding shares on December 31
Exercisable shares on December 31
2019
Weighted-ave
rage exercise
price
(NT dollars)
Shares
8,910 $
(8,910)
10
10
-
-
-
-
The employee stock options above have been fully exercised in 2019.
3)
The third employee stock option plan
2020
2019
Weighted-
average
exercise price
(NT dollars)
Shares
Weighted-
average
exercise price
(NT dollars)
Shares
Outstanding shares on January 1
87,800 $
Expired during the period
Exercised during the period
Outstanding shares on December 31
Exercisable shares on December 31
(4,500)
(80,300)
3,000
3,000
10
10
10
10
10
153,600 $
(7,500)
(58,300)
87,800
87,800
10
10
10
10
10
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
73
As of December 31, 2020 and 2019, the weighted-average remaining contractual life of the
outstanding options was 0.67 and 1.67 years, respectively.
The issuance terms of the share options are as follows.
1)
2)
Exercise price: NT$10 per share.
Exercisable duration:
a)
The first employee stock options plan:
The employees who received share options being granted over two years can
exercise a specific percentage in each period as below. The exercisable duration of
the options is seven years. No transfer is allowed except for inheritance. After the
expiration of the exercisable duration, the unexercised options will be canceled by
CBN and not be re-issued anymore.
Period to exercise options
Exercisable percentage (cumulative)
2 years after options received
3 years after options received
4 years after options received
b)
The second employee stock option plan:
40 ％
70 ％
100 ％
The employees who received share options being granted over two years and are
still employed by CBN and meet requirements can exercise a specific percentage in
each period as stated below. The exercisable duration of the options is seven years.
No transfer is allowed except for inheritance. After the expiration of the exercisable
duration, the unexercised options will be canceled by CBN and not re-issued
anymore.
Period to exercise options
Exercisable percentage (cumulative)
2 years after options received
3 years after options received
4 years after options received
c)
The third employee stock option plan:
40 ％
70 ％
100 ％
The employees who received share options being granted over five months and are
still employed by CBN and meet requirements can exercise a specific percentage in
each period as stated below. The exercisable duration of the options is five years.
No transfer is allowed except for inheritance. After the expiration of the exercisable
duration, the unexercised options will be canceled by CBN and not re-issued
anymore.
Period to exercise options
Exercisable percentage (cumulative)
5 months after options received
100 ％
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
74
d)
e)
Exercise method: CBN would issue new shares as the options are exercised.
Exercise procedure: In accordance with CBN’s issuance and exercise rules, after
receiving the consideration of share options, the entitlement certification of share
options exercised is registered as ordinary shares once a quarter.
The compensation cost for the years ended December 31, 2020 and 2019 were $(68) and
$(112), respectively.
CBN adopted the Black-Scholes model to estimate the fair value on the grant date, and the
assumptions are summarized as follows:
A. The first employee stock option plan:
Original exercise price (NT dollars)
Current price (NT dollars)
Expected dividend yield rate
Expected volatility
Risk-free interest rate
Expected life of the option
$10
25
0%
38.25~38.64%
0.91~1.02%
4.5~5.5 years
Weighted average fair value (NT dollars per share)
16.10~16.49
B. The second employee stock option plan:
Original exercise price (NT dollars)
Current price (NT dollars)
Expected dividend yield rate
Expected volatility
Risk-free interest rate
Expected life of the option
$10
37.02
0%
31.07~32.77%
1.17~1.33%
4.5~5.5 years
Weighted average fair value (NT dollars per share)
27.62~27.92
C. The third employee stock option plan:
Original exercise price (NT dollars)
Current price (NT dollars)
Expected dividend yield rate
Expected volatility
Risk-free interest rate
Expected life of the option
$10
24.62
0%
35.87%
0.56%
2.55 years
Weighted average fair value (NT dollars per share)
14.96
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
75
(v) Earnings per share
The Group’s basic and diluted earnings per share are calculated as follows:
Basic earnings per share:
Profit attributable to ordinary shareholders of the Company
Weighted-average number of outstanding ordinary shares (in
thousands)
Diluted earnings per share:
2020
2019
$
9,361,893
6,955,899
4,357,130
4,357,130
Profit attributable to ordinary shareholders of the Company (after
adjustment of potential diluted ordinary shares)
$
9,361,893
6,955,899
Weighted-average number of outstanding ordinary shares of
potential diluted ordinary shares
Weighted-average number of outstanding ordinary shares (in
thousands)
Effect of potential diluted common stock
Employee compensation (in thousands)
Weighted-average number of ordinary shares (after adjustment of
potential diluted ordinary shares) (in thousands)
4,357,130
4,357,130
57,482
49,860
4,414,612
4,406,990
(w) Revenue from contracts with customers
(i) Disaggregation of revenue
Primary geographical markets:
United states
China
Netherlands
United Kingdom
India
Others
Major products:
5C related electronics products
Others
2020
Strategically
Integrated
Product
Segment
Total
8,106,885
568,651
1,340,450
4,637,401
299,945
18,811,963
33,765,295
446,893,526
127,573,036
84,890,214
50,423,876
30,681,543
308,467,056
1,048,929,251
IT Product
Segment
$
438,786,641
127,004,385
83,549,764
45,786,475
30,381,598
289,655,093
$ 1,015,163,956
$ 1,013,091,503
33,191,331
1,046,282,834
2,072,453
573,964
2,646,417
$ 1,015,163,956
33,765,295
1,048,929,251
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
76
2019
Strategically
Integrated
Product
Segment
2,539,578
456,189
977,438
512,219
3,853,215
9,532,350
15,024,418
32,895,407
IT Product
Segment
376,459,888
103,116,226
97,981,478
43,967,861
40,566,291
29,552,389
255,902,806
947,546,939
Total
378,999,466
103,572,415
98,958,916
44,480,080
44,419,506
39,084,739
270,927,224
980,442,346
945,416,514
2,130,425
947,546,939
32,478,954
416,453
32,895,407
977,895,468
2,546,878
980,442,346
December
31, 2020
$ 236,120,826
December
31, 2019
195,665,380
January 1,
2019
207,794,674
Primary geographical markets:
United states
China
Netherlands
United Kingdom
India
Germany
Others
Major products:
5C related electronics products
Others
(ii) Contract balances
$
$
$
$
Notes and accounts receivable (including
related parties)
Less: allowance for impairment
(3,910,928)
(3,928,716)
(4,020,603)
Total
Contract liabilities
$ 232,209,898
191,736,664
203,774,071
$
820,016
956,455
1,476,304
For the details on accounts receivable and allowance for impairment, please refer to note (6)(e).
The amount of revenue recognized for the years ended December 31, 2020 and 2019 that were
included in the balance of contract liability at the beginning of the period were $877,822 and
$1,419,929, respectively.
The major change in the balance of contract assets and contract liabilities is the difference
between the time frame in the performance obligation to be satisfied and the payment to be
received.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
77
(x) Employees’ and directors’ compensations
Based on the Company’s articles of incorporation, if there is any profit in a fiscal year, the
Company’s pre-tax profits in such fiscal year, prior to deduction of compensations to employees and
directors, shall be distributed to employees as compensations in an amount of not less than two
percent (2%) thereof and to directors as compensations in an amount of not more than two percent
(2%) of such profits. In the event that the Company has accumulated losses, the Company shall
reserve an amount to offset accumulated losses. The compensations to employees as mentioned
above may be distributed in the form of stock or cash. Employees entitled to receive the said stock or
cash may include the employees of the Company’s subordinate companies pursuant to the Company
Act (Employees entitled to receive the said stock or cash may include the employees of the
Company’s subordinate companies who meet certain conditions after the Company’s articles of
incorporation amended on June 21, 2019).
The Company accrued and recognized its employee compensation of $974,694 and $731,322,
respectively, and directors’ compensation of $51,541 and $38,672 for the years ended December 31,
2020 and 2019, respectively. The estimated amounts mentioned above are based on the net profit
before tax without the compensations to employees and directors of each respective ending period,
multiplied by the percentage of the compensation to employees and directors, which was approved
by the management. The estimations are recorded under operating expenses and cost. The differences
between the amounts estimated and recognized in the financial statements, if any, are accounted for
as changes in accounting estimates and recognized as profit or loss in the distribution year. If the
Board of Directors approve to distribute employee compensation in the form of stock, the number of
the shares of the employee compensation is based on the closing price of the day before the Board of
Directors' meeting, the related information can be accessed through the Market Observation Post
System website. There is no difference between the amount approved in the meeting of the Board of
Directors and those recognized in the financial statements in 2020 and 2019.
There is no difference between the amount estimated and recognized in the financial statements in
2019. The related information can be accessed through the Market observation Post System website.
(y) Non-operating income and expenses
(i)
Interest income
Interest income from bank deposits
Interest income from financial assets measured at amortized
cost
Other interest income
Total Interest income
2020
1,635,953
$
2019
1,656,317
-
304
2,992
5,494
$
1,636,257
1,664,803
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
78
(ii) Other income
The other incomes for the years ended December 31, 2020 and 2019, were as follows:
Dividend revenue
Other revenue
(iii) Other gains and losses
2020
2019
$
$
108,996
384,924
493,920
127,349
359,205
486,554
The other gains and losses for the years ended December 31, 2020 and 2019, were as follows:
Gains on disposal of investments
Gains on financial assets and liabilities at fair value through
profit or loss, net
Foreign currency exchange losses, net
Gains (losses) on disposal of property, plant, and equipment,
net
Others
2020
2019
$
29,757
66,837
279,262
(73,475)
408,943
(682,207)
25,499
40,245
-
49
$
261,043
(166,133)
(z) Reclassification of the components of other comprehensive income
The details of reclassification of the components of other comprehensive income for the years ended
December 31, 2020 and 2019, were as follows:
Cash flow hedge:
Gains (losses) from current period
Less: reclassification of gains and losses included in profit or loss
Profit (loss) recognized in other comprehensive income
2020
2019
(12,483)
(15,162)
2,679
(26,649)
(21,778)
(4,871)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
79
(aa) Financial instruments
(i) Credit risk
1)
The carrying amount of financial assets represents the maximum amount exposed to
credit risk. The Group’s customers are mainly from the high-tech industry. The Group
does not concentrate on a specific customer and the sales regions are widely spread, thus
there should be no concern on the significant concentrations of accounts receivable credit
risk. And in order to mitigate accounts receivable credit risk, the Group constantly
assesses the financial status of the customers.
2) Receivables and debt securities
For information of exposure to credit risk of notes and accounts receivable, please refer to
note (6)(e).
Other financial assets at amortized cost include other receivables, and time deposits.
These financial assets are considered to have low risk, and thus, the impairment provision
recognized during the period was limited to 12 months expected losses. (Regarding how
the financial instruments are considered to have low credit risk, please refer to note (4)(g))
of the consolidated financial statements for the year ended December 31, 2020. Due to
the counter parties and the performing parties of the Group’s time deposits are financial
institutions with investment grade and above, these time deposits are considered to have
low credit risk.
The movements in the allowance for the years ended December 31, 2020 and 2019 were as
follows:
Balance on January 1, 2020
Impairment losses recognized (reversed)
Balance on December 31, 2020
Balance on January 1, 2019
Impairment losses recognized (reversed)
Balance on December 31, 2019
Other
receivables
$
$
$
$
1,012
1,380
2,392
3,577
(2,565)
1,012
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
80
(ii) Liquidity risk
The following are the contractual maturities of financial liabilities. Except for lease liabilities
and bonds payable, the amounts exclude estimated interest payments.
Carrying
Amount
Contractual
cash flows Within 1 year
1 ~ 2 years Over 2 years
December 31, 2020
Non-derivative financial liabilities
Secured borrowings
$
Unsecured borrowings
Lease liabilities－current and
non-current
Notes and accounts payable
Other payables
Bonds payable
Derivative financial liabilities
Forward exchange contracts:
228,913
(77,175)
111,944,173 (111,944,173) (101,694,173)
(228,913)
2,287,762
(486,124)
(2,401,961)
199,726,063 (199,726,063) (199,726,063)
(23,397,683)
23,397,683
(23,397,683)
(1,000,000)
980,219
-
Outflow
Inflow
Swap contracts:
Outflow
Inflow
Forward exchange contracts used
for hedging:
Outflow
Inflow
(5,279,091)
5,143,059
(5,279,091)
5,143,059
(1,295,840)
1,285,715
(1,295,840)
1,285,715
130,865
5,752
2,192
(209,640)
208,331
$ 338,703,622 (338,846,259) (325,528,684)
(209,640)
208,331
(77,175)
(5,125,000)
(74,563)
(5,125,000)
(562,952)
(1,352,885)
-
-
(1,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,765,127)
(6,552,448)
98,438
86,601,844
(98,438)
(86,601,844)
(39,375)
(79,101,844)
(39,375)
(1,925,000)
(19,688)
(5,575,000)
December 31, 2019
Non-derivative financial liabilities
Secured borrowings
$
Unsecured borrowings
Lease liabilities－current and
non-current
Notes and accounts payable
Other payables
Bonds payable
Derivative financial liabilities
Forward exchange contracts:
Outflow
Inflow
Forward exchange contracts used
for hedging:
Outflow
Inflow
2,267,088
(754,412)
(2,369,246)
144,445,777 (144,445,777) (144,445,777)
(21,916,685)
21,916,685
(21,916,685)
(1,000,000)
966,492
-
5,854
4,932
(736,484)
732,377
(736,484)
732,377
(1,423,089)
1,433,921
$ 256,307,110 (256,425,265) (246,251,368)
(1,423,089)
1,433,921
(416,167)
(1,198,667)
-
-
-
-
-
-
-
-
-
(1,000,000)
-
-
-
-
(2,380,542)
(7,793,355)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
81
The Group is not expecting that the cash flows included in the maturity analysis could occur
significantly earlier or at significantly different amounts.
(iii) Currency risk
1)
Exposure to foreign currency risk
The Group’s significant exposure to foreign currency risk was as follows:
Unit: thousands of foreign currency / thousands of New Taiwan Dollars
Foreign
currency
December 31, 2020
Exchange
rate
TWD
December 31, 2019
Foreign
currency
Exchange
rate
TWD
Financial assets
Monetary items
USD to TWD
USD to CNY
EUR to TWD
CNY to USD
Non-monetary
items
THB to TWD
Financial liabilities
Monetary items
USD to TWD
USD to CNY
USD to BRL
EUR to TWD
CNY to USD
$ 13,926,339
13,381
60,677
3,646,117
28.48 396,622,135 7,070,270
10,525
381,091
6.5386
2,124,909
35.02
88,303
15,877,352 2,577,002
0.1529
29.98 211,966,695
315,540
2,966,098
11,086,598
6.9667
33.59
0.1435
516,989
0.9502
491,243
446,859
1.0028
448,110
14,056,045
3,132
131,487
12,616
3,149,932
28.48 400,316,162 6,441,501
5,424
6.5386
142,432
5.1967
42,554
35.02
13,716,669 3,182,008
0.1529
89,199
3,744,750
441,812
29.98 193,116,200
162,612
4,270,111
1,429,389
13,689,412
6.9667
3.8322
33.59
0.1435
2)
Sensitivity analysis
The Group’s exposure to foreign currency risk arises from the translation of the foreign
currency exchange gains and losses on cash and cash equivalents, accounts receivable,
other receivables, loans and borrowings, accounts payable, and other payables that are
denominated in foreign currency. Assuming all other variable factors remain constant, a
strengthening (weakening) 5% of appreciation (depreciation) of the each major foreign
currency against Group entities’ functional currency as of December 31, 2020 and 2019,
would have increased (decreased) the net profit before tax as follows. The analysis is
performed on the same basis for both periods.
USD (against the TWD)
Strengthening 5%
Weakening 5%
December 31,
2020
December 31,
2019
$
(184,701)
184,701
942,525
(942,525)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
82
USD (against the CNY)
Strengthening 5%
Weakening 5%
USD (against the BRL)
Strengthening 5%
Weakening 5%
EUR (against the TWD)
Strengthening 5%
Weakening 5%
CNY (against the USD)
Strengthening 5%
Weakening 5%
December 31,
2020
December 31,
2019
14,595
(14,595)
7,646
(7,646)
(187,238)
(213,506)
187,238
213,506
84,155
(84,155)
76,835
(76,835)
108,034
(130,141)
(108,034)
130,141
3)
Exchange gains and losses of monetary items
As the Group deals with diverse foreign currencies, gains or losses on foreign exchange
were summarized as a single amount. For the years ended December 31, 2020 and 2019,
the foreign exchange gains (losses), including both realized and unrealized, amounted to
$73,475 and $682,207, respectively.
(iv) Interest rate analysis
The interest risk exposure from financial assets and liabilities has been disclosed in the note of
liquidity risk management.
The following sensitivity analysis is based on the risk exposure to interest rate on the derivative
and non-derivative financial instruments on the reporting date. Regarding the assets and
liabilities with variable interest rates, the analysis is on the basis of the assumption that the
amount of assets and liabilities outstanding at the reporting date were outstanding throughout
the year. The rate of change is expressed as the interest rate increase or decrease by 0.25%,
when reporting to management internally, which also represents the assessment of the Group’s
management for the reasonably possible interval of interest rate change.
Assuming all other variable factors remaining constant, if the interest rate had increased or
decreased by 0.25%, the impact to the net profit before tax would be as follows for the years
ended December 31, 2020 and 2019, which would be mainly resulted from the bank savings
and borrowings with variable interest rates.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
83
Interest increased by 0.25%
Interest decreased by 0.25%
(v) Fair value information
2020
2019
$
24,312
(13,164)
(24,312)
13,164
1)
The categories and fair value of financial instruments
The Group’s financial assets at fair value through profit or loss, financial instruments
used for hedging and financial assets at fair value through other comprehensive income
were measured at fair value on a recurring basis. The following table shows the carrying
amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy. It shall not include fair value information of the financial
assets and financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value and investments in equity instruments which do
not have any quoted price in an active market in which the fair value cannot be
reasonably measured.
December 31, 2020
Fair Value
Book value
Level 1
Level 2
Level 3
Total
1,972,849
1,972,849
491,243
491,243
Financial assets at fair value through profit
or loss–current and non-current
Derivative financial assets for non-hedging $
11,069
Non-derivative financial assets mandatorily
measured at fair value through profit or
loss
Subtotal
Financial assets at fair value through
other comprehensive income
Stocks listed on domestic markets
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
Financial assets measured at amortized
cost
2,435,793
2,446,862
2,152,542
200,377
38,429,954
43,246,965
Cash and cash equivalents
Notes and accounts receivable, net
89,126,923
193,401,010
Notes and accounts receivable due from
related parties, net
Other receivables
Guarantee deposits
Subtotal
Total
378,934
1,628,657
522,213
285,057,737
$ 330,751,564
-
-
-
-
-
-
-
-
-
-
11,069
-
11,069
2,234,184
201,609
2,435,793
-
-
-
-
-
-
1,972,849
491,243
2,152,542
2,152,542
200,377
200,377
38,429,954
-
38,429,954
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
84
December 31, 2020
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities for
non-hedging
$
136,617
Derivative financial liabilities for hedging
2,192
Financial liabilities measured at
amortized cost
Short-term borrowings
Notes and accounts payable
Notes and accounts payable to related
parties
Other payables
Bonds payable
Lease liabilities－current and non-current
Long-term borrowings current portion
Long-term borrowings
Deposits received
Subtotal
Total
92,838,733
196,837,439
2,888,624
23,397,683
980,219
2,287,762
8,932,615
10,401,738
285,232
338,850,045
$ 338,988,854
-
-
-
-
-
-
-
-
-
-
-
136,617
2,192
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
136,617
2,192
-
-
-
-
-
-
-
-
-
December 31, 2019
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit
or loss–current and non-current
Derivative financial assets for non-hedging $
15,921
Non-derivative financial assets mandatorily
measured at fair value through profit or
loss
Subtotal
Financial assets used for hedging
Financial assets at fair value through
other comprehensive income
Stocks listed on domestic markets
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
-
-
-
1,445,817
1,461,738
61
2,055,890
2,055,890
448,110
448,110
2,246,932
177,121
28,007,745
32,935,798
-
-
-
15,921
-
15,921
1,330,458
115,359
1,445,817
61
-
-
-
61
2,055,890
448,110
2,246,932
2,246,932
177,121
177,121
-
-
-
-
28,007,745
-
28,007,745
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
85
December 31, 2019
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial assets measured at amortized
cost
Cash and cash equivalents
Notes and accounts receivable, net
66,559,397
163,684,407
Notes and accounts receivable due from
related parties, net
Other receivables
Refundable deposits
Subtotal
Total
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities for
non-hedging
Financial liabilities used for hedging
Financial liabilities measured at
amortized cost
Short-term borrowings
Notes and accounts payable
Notes and accounts payable to related
parties
Other payables
Bonds payable
Lease liabilities－current and non-current
Long-term borrowings current portion
Long-term borrowings
Deposits received
Subtotal
Total
44,512
2,006,113
335,897
232,630,326
$ 267,027,923
$
5,854
4,932
60,951,844
142,940,869
1,504,908
21,916,685
966,492
2,267,088
18,189,375
7,559,063
188,815
256,485,139
$ 256,495,925
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,854
4,932
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,854
4,932
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2)
Fair value valuation technique of financial instruments not measured at fair value
The Group estimates financial instruments that not measured at fair value by methods and
assumption as follows:
a)
Financial assets and liabilities measured at amortized cost
If there is quoted price generated by transactions, the recent transaction price and
quoted price data is used as the basis for fair value measurement. However, if no
quoted prices are available, the discounted cash flows are used to estimate fair
values.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
86
3) Fair value valuation technique of financial instruments measured at fair value
a) Non-derivative financial instruments
Financial instruments trade in active markets is based on quoted market prices. The
quoted price of a financial instrument obtained from main exchanges and
on-the-run bonds from Taipei Exchange can be used as a base to determine the fair
value of the listed companies’ equity instrument and debt instrument of the quoted
price in an active market.
If a quoted price of a financial instrument can be obtained in time and often from
exchanges, brokers, underwriters, industrial union, pricing institute, or authorities
and such price can reflect those actual trading and frequently happen in the market,
then the financial instrument is considered to have a quoted price in an active
market. If a financial instrument is not in accord with the definition mentioned
above, then it is considered to be without a quoted price in an active market. In
general, market with low trading volume or high bid-ask spreads is an indication of
a non-active market.
The fair value of the listed company is determined by reference to the market
quotation.
The measurements on fair value of the financial instruments without an active
market are determined using the valuation technique or the quoted market price of
its competitors. Fair value measured using the valuation technique can be
extrapolated from similar financial instruments, discounted cash flow method, or
other valuation techniques which include the model used in calculating the
observable market data at the consolidated balance sheet date.
The measurement of fair value of a non-active market financial instruments held by
the Group which do not have quoted market prices are based on the comparable
market approach, with the use of key assumptions of price-book ratio multiple or
earnings multiple of comparable listed companies as its basic measurement. These
assumptions have been adjusted for the effect of discount without the marketability
of the equity securities.
b) Derivative financial instruments
Measurement of the fair value of derivative instruments is based on the valuation
techniques that are generally accepted by the market participants. For instance,
discount method or option pricing models. Fair value of forward currency exchange
is usually determined by using the forward currency rate.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
87
4) Transfer from one level to another
There was no transfer from one level to another in the year ended December 31, 2020.
investment
The Group held an
in equity of Crystalvue Medical Corporation
(“Crystalvue”), which were classified as fair value through other comprehensive
income. The fair value of the investment was categorized as level 3 as of December 31,
2018, because the shares were not listed on the exchange market and was measured by
significant unobservable inputs. In December 2019, Crystalvue’s shares were listed on
the exchange market, wherein they are actively traded. Currently, the equity shares have
quoted market price in an active market; therefore, the category was transferred from
level 3 to level 1 as of December 31, 2019.
5) Changes in level 3
The change in level 3 at fair value in the years ended December 31, 2020 and 2019, were
as follow:
Financial assets at
fair value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Total
Balance on January 1, 2020
$
115,359
2,424,053
2,539,412
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds of capital reduction of
investment
Effect of changes in exchange rates
Balance on December 31, 2020
Balance on January 1, 2019
$
$
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds of capital reduction of
investment
Transferred out from Level 3
Effect of changes in exchange rates
9,575
-
76,675
201,609
69,390
(9,627)
-
55,596
-
-
-
-
-
-
-
-
-
Balance on December 31, 2019
$
115,359
(34,716)
29,369
(52,105)
(6,933)
(6,749)
2,352,919
2,041,463
210,191
208,665
(791)
(10,120)
(20,498)
(4,857)
2,424,053
9,575
(34,716)
106,044
(52,105)
(6,933)
(6,749)
2,554,528
2,110,853
(9,627)
210,191
264,261
(791)
(10,120)
(20,498)
(4,857)
2,539,412
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
88
For the years ended December 31, 2020 and 2019, total gains and losses that were
included in “other gains and losses, net” and “unrealized gains and losses from
equity instruments at fair value through other comprehensive income”, respectively,
were as follows:
Total gains and losses recognized:
In profit or loss before tax (as “other gains and
losses”)
In other comprehensive income (as “unrealized gains
and losses from equity instruments at fair value
through other comprehensive income”)
$
$
2020
2019
9,575
(9,627)
8,834
210,191
6) The quantified information for significant unobservable inputs (level 3) used in fair value
measurement
The Group’s financial instruments that use level 3 input to measure fair values include
financial assets at fair value through other comprehensive income and financial assets at
fair value through profit or loss.
Most of fair value measurements of the Group which are categorized as equity investment
into level 3 have several significant unobservable inputs. Significant unobservable inputs
of equity investments without quoted price are independent of each other.
The quantified information for significant unobservable inputs was as follows:
Item
Financial assets at fair
value through other
comprehensive
income－equity
investment without an
active market
Valuation
technique
Comparable
market approach
(Price-Book ratio
method and
Earnings
multiplier
method)
Inter-relationships
between significant
unobservable inputs
and fair value
The higher the
multiple is, the
higher the fair value
will be.
The higher the
multiple is, the
higher the fair value
will be.
The higher the
Lack-of-Marketabilit
y discount rate is,
the lower the fair
value will be.
Significant
unobservable inputs
Price-Book ratio
multiples (1.72~7.9
and 1.4~5.64,
respectively, on
December 31, 2020
and 2019)
Multiples of earnings
14.68 and 3.12~16.6,
respectively, on
December 31, 2020
and 2019)
Lack-of-Marketability
discount rate
(35%~85% and
35%~85%,
respectively, on
December 31, 2020
and 2019)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
89
Item
Financial assets at fair
value through other
comprehensive
income
Financial assets at fair
value through profit or
loss
Valuation
technique
Net asset value
method
Net asset value
method
Significant
unobservable inputs
Net asset value
Inter-relationships
between significant
unobservable inputs
and fair value
Inapplicable
Net asset value
Inapplicable
7) Sensitivity analysis for fair value of financial instruments using level 3 inputs
The Group’s fair value measurement on financial instruments is reasonable. However, the
measurement would be different if different valuation models or valuation parameters are
used. For financial instruments using level 3 inputs, if the valuation parameters changed,
the impacts on other comprehensive income or loss are as follows:
Input
Price-Book ratio
multiples
December 31, 2020
Financial assets at fair
value through other
comprehensive
income
Move up
or down
Other comprehensive income
Unfavorable
change
Favorable
change
5%
$
36,119
35,448
December 31, 2019
Financial assets at fair
value through other
comprehensive
income
Multiples of earnings
Lack-of-Marketability
discount rate
Price-Book ratio
multiples
Multiples of earnings
Lack-of-Marketability
discount rate
5%
5%
$
$
5,734
3,942
5,801
3,942
5%
$
28,209
27,261
5%
5%
$
$
21,481
12,886
19,524
12,938
The favorable and unfavorable changes reflect the movement of the fair value, in which
the fair value is calculated by using the different unobservable inputs in the valuation
technique. The table above shows the effects of one unobservable input, without
considering the inter-relationships with another unobservable input for financial
instrument, if there are one or more unobservable inputs.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
90
8) Offsetting financial assets and financial liabilities
The Group has financial instruments transactions applicable to the International Financial
Reporting Standards NO. 32 Sections 42 endorsed by the FSC which requested for
offsetting. Financial assets and liabilities relating to those transactions are recognized in
the net amount of the balance sheets.
The following tables present the aforesaid offsetting financial assets and financial
liabilities.
Unit: thousands of New Taiwan Dollars / thousands of US Dollars
December 31, 2020
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts
of recognized
financial assets
(a)
Gross amounts
of financial
liabilities offset
in the balance
sheet
(b)
Net amount of
financial assets
presented in
the balance
sheet
(c)=(a)-(b)
Amounts not offset in
the balance sheet (d)
Cash
collateral
received
Financial
instruments
Net amount
(e)=(c)-(d)
Other current assets
$
199,267,863
199,267,863
-
-
-
-
(USD 6,996,765)
(USD 6,996,765)
December 31, 2020
Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of
recognized
financial liabilities
(a)
Gross amounts
of financial
assets offset in
the balance
sheet
(b)
Net amount of
financial
liabilities
presented in
the balance
sheet
(c)=(a)-(b)
Amounts not offset in
the balance sheet (d)
Cash
collateral
received
Financial
instruments
Net amount
(e)=(c)-(d)
Short-term borrowings
$
199,267,863
199,267,863
-
-
-
-
(USD 6,996,765)
(USD 6,996,765)
December 31, 2019
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts
of recognized
financial assets
(a)
Gross amounts
of financial
liabilities offset
in the balance
sheet
(b)
Net amount of
financial assets
presented in
the balance
sheet
(c)=(a)-(b)
Amounts not offset in
the balance sheet (d)
Cash
collateral
received
Financial
instruments
Net amount
(e)=(c)-(d)
Other current assets
$
104,757,401
104,757,401
-
-
-
-
(USD 3,494,243)
(USD 3,494,243)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
91
December 31, 2019
Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of
recognized
financial liabilities
(a)
Gross amounts of
financial assets
offset in
the balance
sheet
(b)
Net amount of
financial
liabilities
presented in
the balance
sheet
(c)=(a)-(b)
Amounts not offset in the
balance sheet (d)
Financial
instruments
Cash
collateral
received
Net amount
(e)=(c)-(d)
Short-term borrowings
$
104,757,401
104,757,401
-
-
-
-
(USD 3,494,243)
(USD 3,494,243)
(ab) Financial risk management
(i) Overview
The Group is exposed to the following risks arising from financial instruments:
1) Credit risk
2) Liquidity risk
3) Market risk
In this note expressed the information on risk exposure and objectives, policies and procedures
of risk measurement and management of the Group. For detailed information, please refer to
the related notes of each risk.
(ii) Structure of risk management
The Group’s finance management department provides business services for the overall
internal department. It sets the objectives, policies and processes for managing the risk and the
methods used to measure the risk arising from both the domestic and international financial
market operations.
The Group minimizes the risk exposure through derivative financial instruments. The Board of
Directors regulated the use of derivative financial instruments in accordance with the Group’s
policy about risks arising from financial instruments such as currency risk, interest rate risk,
credit risk, the use of derivative and non-derivative financial instruments and the investments
of excess liquidity. The internal auditors of the Group continue with the review of the amount
of the risk exposure in accordance with the Group’s policies and the risk management policies
and procedures. The Group has no transactions in financial instruments (including derivative
financial instruments) for the purpose of speculation.
(iii) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s
receivables from customers and investment securities.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
92
1) Accounts receivable and other receivables
The Group has established a credit policy under which each new customer is analysed
individually for creditworthiness before the Group’s standard payment and delivery terms
and conditions are offered. The Group’s review includes external ratings, when available,
and in some cases bank references. Purchase limits are established for each customer, and
these limits are reviewed periodically.
2)
Investments
The credit risks exposure in the bank deposits, investments with fixed income and other
financial instruments are measured and monitored by the Group’s finance department.
Since
the contractually obligated
counterparties are banks, financial institutes and corporate organizations with good
credits, there are no compliance issues, and therefore, no significant credit risk.
transaction counterparties and
the Group's
3) Guarantees
Pursuant to the Group’s policies, it is only permissible to provide financial guarantees to
subsidiaries and companies that the Group has business with. As of December 31, 2020
and 2019, the Group did not provide any guarantees to other companies besides its
subsidiaries.
(iv) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations
associated with its financial liabilities which be settled by delivering cash or another financial
asset.
The Group manages and maintains sufficient cash and cash equivalents so as to cope with its
operations and mitigate the effects of fluctuations in cash flows. The Group’s management
supervises the banking facilities and ensures in compliance with the terms of the loan
agreements. Please refer to notes (6)(m) and (6)(n) for unused credit lines of short-term and
long-term borrowings as of December 31, 2020 and 2019.
(v) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest
rates and equity prices which will affect the Group’s income or the value of its holdings of
financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimizing the return.
1) Currency risk
The Group is exposed to currency risk on sales, purchases and borrowings that are
denominated in a currency other than the functional currencies of the Group. The
currencies used in these transactions are primarily denominated in TWD, USD, EUR and
CNY.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
93
As for other monetary assets and liabilities denominated in other foreign currencies, when
short-term imbalance takes place, the Group buys or sells foreign currencies at spot rate
to ensure that the net exposure is kept on an acceptable level.
2)
Interest rate risk
The Group borrows funds on fixed and variable interest rates, which has a risk exposure
to changes in fair value and cash flow. Therefore, the Group manages the interest rates
risk by maintaining an adequate combination of fixed and variable interest rates.
3) Other price risk
The Group is exposed to equity price risk arising from investments in listed equity
securities.
(ac) Capital management
The policy of capital management made by the Board of Directors is to maintain a strong capital base
so as to stabilize the confidence of the investors, creditors and the public market and to sustain future
development of the business. Capital consists of ordinary shares, capital surplus, retained earnings
and non-controlling interests. The Board of Directors monitors the return on capital as well as the
level of dividends to ordinary shareholders.
The Group monitors the capital structure by way of periodical review the debt ratio. As of
December 31, 2020 and 2019, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December
31, 2020
$ 350,936,048
December
31, 2019
267,889,075
$ 466,925,698
382,648,419
75 %
70 %
The Group could purchase its own shares in the public market in accordance with the corresponding
rules and regulations. The timing of the purchases depends on market prices.
As of December 31, 2020, there were no changes in the Group’s approach of capital management.
(ad) Investing and financing activities not affecting current cash flow
The Group’s investing and financing activities which did not affect the current cash flow in the years
ended December 31, 2020 and 2019 were acquisition of right-of-use assets by leasing, please refer to
note (6)(l).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
94
Reconciliation of liabilities arising from financing activities was as follows:
Short-term borrowings
Proceeds from issuance of convertible
bonds
Long-term borrowings
Lease liabilities
January 1,
2020
$ 60,951,844
Cash flow
31,886,889
Other
non-cash
changes
-
December
31, 2020
92,838,733
966,492
-
13,727
980,219
25,748,438
(6,414,085)
-
19,334,353
2,267,088
(846,836)
867,510
2,287,762
Guarantee deposits and others
246,038
92,634
1,459
340,131
Total liabilities from financing activities $ 90,179,900
24,718,602
882,696 115,781,198
Short-term borrowings
$ 72,350,197 (11,398,353)
January 1,
2019
Cash flow
Other
non-cash
changes
-
December
31, 2019
60,951,844
Proceeds from issuance of convertible
bonds
Long-term borrowings
Lease liabilities
-
1,007,240
(40,748)
966,492
28,534,063
(2,785,625)
-
25,748,438
2,089,950
(832,815)
1,009,953
2,267,088
Guarantee deposits and others
238,324
(34,005)
41,719
246,038
Total liabilities from financing activities $ 103,212,534 (14,043,558)
1,010,924
90,179,900
(7) Related-party transactions:
(a) Name and relationship with related parties
The followings are the entities that have had transactions with the Group during the periods covered
in the consolidated financial statement.
Name of related party
Relationship with the Group
Compal Precision Module (Jiangsu) Co., Ltd. (“CPM”)
Changbao Electronic Technology (Chongqing) Co., Ltd.
An associate
An associate
(“Changbao”)
Hong Ya Technology Corporation (“Hong Ya
An associate
Technology”)
Avalue
An associate
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
95
Name of related party
Crownpo Technology Inc. (“Crownpo”)
Allied Circuit
Kinpo Group Management Consultant Company
(“Kinpo Group Management”)
LIZ Electronics (Kunshan) Co., Ltd.
LIZ Electronics (Nantong) Co., Ltd.
Compal Connector Manufacture Ltd. (“CCM”)
ARCE Therapeutics Co., Ltd. (“ARCE”)
Raypal Biomedical Co., Ltd. (“Raypal”)
AcBel Polytech Inc. and its subsidiaries (“AcBel”)
Cal-Comp Electronics & Communications Company
Limited
(b) Transactions with key management personnel
Key management personnel remunerations comprised:
Short-term employee benefits
Post-employment benefits
Share-based payments
Relationship with the Group
An associate
An associate
An associate
An associate
An associate
A joint venture company
An associate
An associate
The same Chairman of the Board with
the Company
The same Chairman of the Board with
the Company
2020
2019
$
724,350
671,762
8,267
19,033
8,225
30,276
$
751,650
710,263
There are no termination benefits and other long-term benefits. Please refer to note (6)(u) for
explanations related to share-based payments.
(c) Significant related-party transactions
(i)
Sale of goods to related parties
The amounts of significant sales transactions between the Group and related parties were as
follows:
Associates
Other related parties
Joint venture
2020
2019
$
240,161
288,629
610,517
24
222
-
$
850,900
288,653
Sales prices for related parties were similar to those of the third-party customers. The
collection period was 60~120 days for related parties.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
96
(ii) Purchase of goods from related parties
The amounts of significant purchase transactions between the Group and related parties were as
follows:
Associates
Other related parties
Joint venture
2020
4,596,352
$
2019
3,678,644
2,956,322
1,663,747
-
31,150
$
7,552,674
5,373,541
Purchase prices and payment period from related parties were similar to those from third-party
suppliers. The payment period was 60~165 days for related parties.
(iii) Receivables due from relate parties
The receivables arising from the transactions mentioned above and others on behalf of related
parties were as follows:
Account
Related party
categories
December
31, 2020
December
31, 2019
Notes and accounts receivable
Associates
$
29,643
44,493
Notes and accounts receivable
Other related parties
349,291
Other receivables
Other receivables
Other related parties
Joint venture
64
908
-
19
62
$
379,906
44,574
(iv) Payables to related parties
The payables arising from the transactions mentioned above and rendering of services from
other related parties were as follows:
Account
Notes and accounts payable
Notes and accounts payable
Notes and accounts payable
Other payables
Related party
categories
December
31, 2020
December
31, 2019
Associates
$
1,632,862
764,129
Other related parties
1,255,762
740,742
Joint venture
Associates
-
37
600
-
$
2,889,224
1,504,908
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
97
(8) Pledged assets:
The carrying values of pledged assets were as follows:
Pledged Assets
Other current assets
Property, plant and
equipment
Subject
December
31, 2020
December
31, 2019
Bail for court mandatory execution
$
41,090
41,090
Long-term borrowings (including current portion)
486,581
249,445
Other non-current assets Guarantee of post-release duty payment to the
customs and guarantee of the customs
500
500
$
528,171
291,035
(9) Commitments and contingencies:
The details of commitments and contingencies were as follows:
(a)
In August 2019, Inventec Corporation filed a lawsuit to the Taiwan Taipei District Prosecutors
Office against the Group concerning its former employees who joined the Group. This is deemed as
an act of violation according to the Trade Secret Law and Copyright Law. The Group engaged
lawyers to defend its right on this matter. Currently, the case is still in progress; therefore, the Group
cannot make any reasonable estimation regarding the possible impact on its business operation.
(b) The Group entered into various patent license agreements with third parties, and was required to
make royalty payments of a predetermined amount periodically.
(c) As of December 31, 2020 and 2019, the Group’s signed commitments to purchase property, plant
and equipment amounted to $473,370 and $548,202, respectively.
(10) Losses due to major disasters: None
(11) Subsequent events: None
(12) Other:
(a) The employee benefits, depreciation and amortization expenses by categorized function are
summarized as follows:
By function
Operating
costs
2020
Operating
expenses
Total
Operating
costs
2019
Operating
expenses
Total
By item
Employee benefits
Salary
17,777,589 12,789,968 30,567,557
18,163,713
12,202,863 30,366,576
Labor and health insurance
Pension
Others
Depreciation
Amortization
841,733
883,287
835,965
1,677,698
909,916
816,727
1,726,643
500,044
1,383,331
1,219,607
504,059
1,723,666
2,216,080
599,320
2,815,400
2,075,648
623,657
2,699,305
4,684,438
1,032,002
5,716,440
5,029,744
944,616
5,974,360
47,195
429,350
476,545
77,908
367,153
445,061
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
98
(13) Other disclosures:
(a)
Information on significant transactions
The following were the information on significant transactions required by the “Regulations
Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year
ended December 31, 2020:
(i) Loans to other parties: Please refer to Table 1
(ii) Guarantees and endorsements for other parties: Please refer to Table 2
(iii) Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and
joint ventures): Please refer to Table 3
(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of
NT$300 million or 20% of the capital stock: Please refer to Table 4
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or
20% of the capital stock: Please refer to Table 5
(vi) Disposals of individual real estate with amount exceeding the lower of NT$300 million or 20%
of the capital stock: None
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of
NT$100 million or 20% of the capital stock: Please refer to Table 6
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 7
(ix) Trading in derivative instruments: Please refer to notes (6)(b) and (6)(d)
(x) Business relationships and significant intercompany transactions: Please refer to Table 8
(b)
Information on investees: Please refer to Table 9
(c)
Information on investment in mainland China: Please refer to Table 10
(d) Major shareholders: There were no shareholders holding more than 5% shares.
(14) Segment information:
(a) General information
The Group’s information technology product segment is primarily engaged in the development,
manufacture and sale of information technology products and mobile communication products. The
strategy integrate product segment is primarily engaged in the research, development, manufacture
and sale of networking products.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
99
(b) Reportable segments and operating segment information
Accounting policies for the operating segments correspond to those stated in note 4. The profit and
loss of the operating segment of the Group is measured by earnings before taxes and as the basis for
performance measurement. The amount of the Group's reportable segments consistent with the one in
the report that the operating decision maker used, and the Group does not allocate assets and
liabilities to the reportable segments for the purpose of operating decisions to measure assets and
liabilities of segments.
The operating segment information was as follows:
2020
Information
technology
product segment
Strategy
integrated
product segment
Adjustment and
elimination
Total
Revenue
Revenue from external
$
1,015,163,956
33,765,295
customers
Interest revenue
Total revenue
Interest expense
$
$
1,590,643
45,614
1,016,754,599
33,810,909
1,102,805
Depreciation and amortization
5,675,006
Investment gain (loss)
435,657
Other significant non-cash
items:
Impairment of assets
-
46,410
517,979
-
-
Reportable segment profit
$
10,793,917
2,328,799
Reportable segment assets
Reportable segment
liabilities
-
-
-
-
-
-
-
-
1,048,929,251
1,636,257
1,050,565,508
1,149,215
6,192,985
435,657
-
13,122,716
466,925,698
350,936,048
$
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
100
2019
Information
technology
product segment
Strategy
integrated
product segment
Adjustment and
elimination
Total
$ 947,546,939
32,895,407
-
980,442,346
Revenue
Revenue from external
customers
Interest revenue
Total revenue
Interest expense
$
$
Depreciation and amortization
Investment gain (loss)
Other significant non-cash
items:
1,593,904
70,899
949,140,843
32,966,306
2,669,003
5,991,303
197,008
56,561
428,118
-
-
Impairment of assets
-
Reportable segment profit
$
8,307,224
1,700,652
Reportable segment assets
Reportable segment
liabilities
(c) Products information
The information of revenue from external customers:
-
-
-
-
-
-
-
1,664,803
982,107,149
2,725,564
6,419,421
197,008
-
10,007,876
$
382,648,419
$ 267,889,075
Products and services
5C related electronic products
Others
(d) Geographic information
2020
2019
$
1,046,282,834
977,895,468
2,646,417
2,546,878
$
1,048,929,251
980,442,346
Stated below are the geographic information on the Group’s sales presented by destination of sales
and non-current assets presented by location.
(i) Revenue from external customers:
Country
United States
China
Netherlands
Others
2020
2019
$
446,893,526
378,999,466
127,573,036
103,572,415
84,890,214
98,958,916
389,572,475
398,911,549
$
1,048,929,251
980,442,346
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
101
(ii) Non-current assets:
Country
China
Taiwan
Others
2020
2019
$
14,963,036
13,525,794
9,373,521
3,645,754
10,389,632
1,578,056
$
27,982,311
25,493,482
Non-current assets include plant, property and equipment, right-of-use assets, intangible assets,
and other assets, excluding deferred tax assets.
(e) The details of sales revenue from external customers more than 10% of the amount of consolidated
statement of comprehensive income were as follows:
D Company
F Company
A Company
E Company
2020
2019
$
431,621,595
390,210,303
240,039,272
212,262,458
120,376,434
96,591,070
75,903,386
105,890,275
$
867,940,687
804,954,106
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
102
Table 1 Loans to other parties:
(December 31, 2020)
Name of
lender
No.
0 The
Name of
borrower
CVC
Company
Account
name
Other
receivables
Related
party
Y
Highest balance
of financing to
other parties
during the
period
302,500
Ending
balance
-
Actual
usage
amount
during the
period
-
Range of
interest rates
during the
period
3.20%
Purposes of
fund
financing
for the
borrower
Short-term
financing
Transaction
amount for
business
between two
parties
-
0 The
UCGI
Company
Other
receivables
0 The
HengHao Other
Company
receivables
0 The
CEB
Company
1 CIH
CEP
2 CPC
CDE
2 CPC
CIC
Other
receivables
Other
receivables
Other
receivables
Other
receivables
3 CIT
3 CIT
CCI
Nanjing
Other
receivables
Rayonnant
(Taicang)
Other
receivables
4 CPO
HengHao
Kunshan
Other
receivables
4 CPO
CIT
5 CET
BT
Other
receivables
Other
receivables
6 CIC
HengHao
Kunshan
Other
receivables
7 Panpal
HengHao Other
8 Arcadyan Acradyan
Brasil
8 Arcadyan Acradyan
Brasil
8 Arcadyan Arcadyan
UK
receivables
Other
receivables
Other
receivables
Other
receivables
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
500,000
250,000
220,000 1.08%~1.20% Short-term
financing
400,000
200,000
200,000 1.08%~1.20% Short-term
financing
3,013,500
1,424,000
1,424,000 2.05%~3.50% Short-term
financing
163,655
56,960
56,960
3.50%
2,610,900
1,313,100
1,313,100
2.20%
437,900
437,700
-
2.20%
Short-term
financing
Short-term
financing
Short-term
financing
4,154,500
1,993,600
1,606,272 2.00%~2.76% Short-term
financing
65,685
65,655
65,655
4.35%
Short-term
financing
1,642,410
966,800
966,800 2.00%~4.35% Short-term
financing
656,850
656,550
-
2.20%
262,740
262,620
65,655
2.20%
582,000
569,600
569,600
2.00%
Short-term
financing
Short-term
financing
Short-term
financing
1,200,000
600,000
600,000 1.08%~1.2% Short-term
financing
56,960
-
-
1.00%
56,960
56,960
37,024
1.00%
199,360
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8 Arcadyan Arcadyan
UK
Other
receivables
Y
284,800
284,800
8 Arcadyan Arcadyan
Vietnam
Other
receivables
Y
256,320
-
8 Arcadyan Arcadyan
Vietnam
Other
receivables
Y
256,320
256,320
-
-
-
-
1.00%
1.00%
1.00%
1.00%
8 Arcadyan Arcadyan
Russia
Other
receivables
9 Zhi-bao Acradyan
Brasil
10 Arcadyan
CNC
Holding
10 Arcadyan
CNC
Holding
11 SVA
CNC
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Y
Y
Y
Y
Y
56,960
56,960
6,925
1.00%
31,328
484,160
-
-
-
-
1.00%
1.00%
484,160
484,160
484,160
1.00%
153,020
153,020
139,904
3.85%
Short-term
financing
Short-term
financing
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
4,272,000
-
4,475,717
-
569,600
-
5,530,446
-
170,787
-
-
-
-
-
Operating
financing
Operating
financing
Operating
financing
Operating
financing
Reasons
for
short-
term
financing
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
financing
Operating
financing
(In Thousands of New Taiwan Dollars)
Collateral
Allowance
for
bad debt
-
Item
-
Value
-
Individual
funding loan
limits
21,366,501
Maximum
limit of fund
financing
42,733,002
Note
(Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,366,501
42,733,002
(Note 1)
21,366,501
42,733,002
(Note 1)
21,366,501
42,733,002
(Note 1)
35,228,322
35,228,322
(Note 2)
1,987,846
1,987,846
(Note 3)
1,987,846
1,987,846
(Note 3)
20,913,770
20,913,770
(Note 4)
20,913,770
20,913,770
(Note 4)
2,810,936
2,810,936
(Note 5)
2,810,936
2,810,936
(Note 5)
4,761,295
4,761,295
(Note 6)
8,030,522
8,030,522
(Note 7)
2,222,153
2,222,153
(Note 8)
2,321,872
4,643,744
(Note 9)
2,321,872
4,643,744
(Note 9)
2,321,872
4,643,744
(Note 9)
-
-
2,321,872
4,643,744
(Note 9)
-
-
455,680
4,643,744
(Note 9)
-
-
2,321,872
4,643,744
(Note 9)
-
-
136,629
4,643,744
(Note 9)
-
-
-
-
-
-
-
-
42,399
169,598
(Note 10)
2,287,344
2,287,344
(Note 11)
2,287,344
2,287,344
(Note 11)
164,728
164,728
(Note 12)
Note 1:
According to the Company’ s Procedures of Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of the Company. When a short-term financing facility
with the Company is necessary, the total amount for lending to any company shall not exceed 80% of the borrower’s net worth, nor shall it be more than 50% of the Company’s lendable amount limit, and
shall be combined with the company’s endorsements/guarantees for calculation. In addition, the total amount lendable to 100% directly or indirectly owned subsidiaries by the Company is unrestricted by
the aforesaid restriction of 80%, but the maximum amount shall not exceed 50% of the Company’s lendable limit, and shall be combined with the company’s amount of loans to others when calculating.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
103
Table 1 Loans to other parties:
(December 31, 2020)
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
According to CIH’s Procedures for Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of CIH. When a short-term financing facility with CIH is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CIH’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIH, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CPC’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CPC. When a short-term financing facility with CPC is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower ’s net worth, nor shall it exceed 50% of CPC’ s total amount of capital lent, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CPC, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CIT ’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CIT. When a short-term financing facility with CIT is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower ’s net worth, nor shall it exceed 50% of CIT ’ s total amount of capital lent, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIT, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CPO’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CPO. When a short-term financing facility with CPO is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CPO’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CPO, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CET’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CET. When a short-term financing facility with CET is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CET’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CET, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CIC ’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CIC. When a short-term financing facility with CIC is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CIC’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIC, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to Panpal’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Panpal. When a short-term financing facility with Panpal
is necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of Panpal’s total amount of lendable capital, and shall be combined with
the company’s endorsements/guarantees for calculation. In addition, when lending to the total amount lendable to 100% directly or indirectly owned subsidiaries by the Company, or the ultimate parent
company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not limited by the two aforesaid restrictions of 80%, but the maximum amount shall not exceed Panpal’s
total amount of lendable capital, and shall be combined with the company’s endorsements/guarantees for the borrower when calculating.
According to Arcadyan’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Arcadyan. To borrowers having business relationship
with Arcadyan, the total amount for lending the borrower shall not exceed 80% of the transaction amount in the last fiscal year or the expecting amount for the current year, nor shall it exceed 20% of the
net worth of Arcadyan. Also, the amount shall be combined with the Arcadyan’ s endorsements/guarantees for the borrower when calculating. When a short-term financing facility is necessary, the borrower
should be Arcadyan’ s investee. The total amount for lending the borrower shall not exceed 80% of the net worth of the borrower, nor shall it exceed 20% of the net worth of Arcadyan, and shall be
combined with the Arcadyan’s endorsements/guarantees for the borrower when calculating.
Note 10: The total amount of loans to others shall not exceed 40% of the net worth of Zhi-bao. To borrowers having business relationship with Zhi-bao, the total amount for lending the borrower shall not exceed
80% of the transaction amount in the last fiscal year or the expecting amount for the current year, nor shall it exceed 20% of the net worth of Zhi-bao. When a short-term financing facility is necessary, the
borrower should be the investee of parent company, and the total amount for lending the borrower shall not exceed 10% of the net worth of the borrower.
Note 11: According to Arcadyan Holding’s Procedures of Lending Funds to Other Parties, the total amount of loans to others shall not exceed the net worth of Arcadyan Holding. When a short-term financing facility
is necessary, the borrower should be Arcadyan Holding’s investee. The total amount for lending the borrower shall not exceed the net worth of Arcadyan Holding, and shall be combined with the Arcadyan
Holding’s endorsements/ guarantees for the borrower when calculating.
Note 12: Accroding to SVA's Procedure for Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of SVA. To borrowers having business relationship with SVA,
the total amount for lending the borrower shall not exceed 80% of the transation amount in the last fiscal year or the expecting amount for the current year, nor shall it exceed 20% of the net worth of SVA.
Also, the amount shall bbe combined with the SVA's endorsements/gurarantees for the borrower when calculating. When a short-term financing facility is necessary, the borrower should be the investee of
the parent company. The total amount for lending the borrower shall not exceed 20%of the net worth of SVA, and shall be combined with SVA's endorsenents/guarantees for the borrower when calculating .
In addition, when lending to the parent company or its 100% directly and indirectly owned subsidiaries, the total amount or individual amount shall not exceed the net worth of the latest financial statements
of SVA.
Note 13: The transactions had been eliminated in the consolidated financial statements.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
104
Table 2 Guarantees and endorsements for other parties:
(December 31, 2020)
Counter-party of
guarantee and
endorsement
Name of
guarantor
No.
0 The Company CEB
Name
Relationship
with the
Company
(Note 3)
Limitation on
amount of
guarantees
and
endorsements
for a specific
enterprise
26,708,126
Highest
balance for
guarantees
and
endorsements
during the
period
Balance of
guarantees
and
endorsements
as of
reporting date
Property
pledged for
guarantees
and
endorsements
(Amount)
Actual usage
amount
during the
period
Ratio of
accumulated
amounts of
guarantees and
endorsements to
net worth of the
latest financial
statements
Maximum
amount
for guarantees
and endorsements
(Note 1)
60,500
56,960
56,960
0.05%
53,416,252
(In Thousands of New Taiwan Dollars)
Parent
company
endorsements
/guarantees
to third
parties on
behalf of
subsidiary
Y
Subsidiary
endorsements
/guarantees
to third
parties on
behalf of
parent
company
-
Endorsements
/ guarantees
to third
parties on
behalf of
companies in
Mainland
China
-
0
The Company
CEP
(Note 2)
26,708,126
190,295
157,837
157,837
0.15%
53,416,252
Y
-
-
-
-
Note 1: According to the Company’ s Procedures for Endorsement and Guarantee, the total amount of endorsements/ guarantees the Company or the Group is permitted to make shall not exceed 50% of the
Company’s net worth. Endorsements/ guarantees the Company and the Group are permitted to make for a single company shall not exceed 25% of the Company’s net worth. For entities having business
relationship with the Company, the amount of endorsements/ guarantees for a single company shall not exceed 80% of the transaction amount in the last fiscal year or the expecting amount of the curren t
year, and shall be combined with the amount lend to others when calculating. The amount of endorsements/ guarantees permitted to make between su bsidiaries whose over 90% of its voting shares ar e
owned, directly or indirectly, by the Company shall be no more than 10% of the net worth of the Company. The amount of endorsements/ guarantees permitted to make between directly or indirectly
wholly owned subsidiaries is not limited by the aforementioned restriction, only the maximum amount shall be no more than 25% of the net worth of the Company.
Note 2: Subsidiary whose over 50% common stock is directly owned.
Note 3: Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
105
Table 3 Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2020)
Name of
holder
Category and name of security
The Company Taiwan Star
Relationship with
security issuer
‑
Account name
Financial assets at fair value
through other comprehensive
income-non-current
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
98,046
Carrying
value
686,325
Holding
percentage
(%)
3%
Fair value
686,325
Note
Kinpo Electronics, Inc. (“Kinpo”)
The same chairman Financial assets at fair value
through other comprehensive
of the Company
income-non-current
Cal-Comp Electronics (Thailand) Public The same chairman Financial assets at fair value
through other comprehensive
Co., Ltd.
income-non-current
of the Company
124,044
1,507,132
9%
1,507,132
239,631
491,243
5%
491,243
HWA VI Venture Capital Corp.
HWA Chi Venture Capital Corp.
mProbe Ltd.
Chen Feng Optoelectronics
PrimeSensor Technology Inc.
IIH Biomedical Venture Fund
Phoenix Innovation Investment
Corporation.
Others
Total
‑
‑
‑
‑
‑
‑
‑
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non current
Financial assets at fair value
through profit or loss-non current
Financial assets at fair value
through profit or loss and other
comprehensive income
Panpal
Compal Electronics, Inc.
Kinpo
The parent company Financial assets at fair value
through other comprehensive
income-non-current
The same chairman Financial assets at fair value
through other comprehensive
of the Company
income-non-current
CDIB Partners Investment Holding
Corp.
‑
AcBel
The same chairman
of the Company
Taiwan Biotech Co., Ltd.
‑
Others
Total
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
290
26,701
10%
26,701
632
20,804
11%
20,804
4,000
60,680
3%
60,680
6,685
35,764
10%
35,764
663
6,920
3%
6,920
2,500
23,450
8%
23,450
6,000
76,740
19%
76,740
104,131
3,039,890
31,648
655,115
1%
655,115
(Note 1)
23,172
281,546
2%
281,546
54,000
827,820
5%
827,820
5,677
164,340
1%
164,340
5,769
115,378
3%
115,378
197,139
2,241,338
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
106
Table 3 Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2020)
Name of
holder
Category and name of security
Relationship with
security issuer
Account name
Gempal
Compal Electronics, Inc.
The parent company Financial assets at fair value
Lian Hong Art. Co., Ltd.
Gempal
Others
Total
Hong Ji
SUYIN Optronics Co., Ltd.
(“SUYIN Optronics”)
Hong Jin
SUYIN Optronics
Arcadyan
GeoThings Inc.
AirHop Communication Inc.
Adant Technologies Inc.
IOT EYE, Inc.
TIEF FUND L.P.
Chimei Motor Electronics Co., LTD
Golden Smarthome Technology Corp.
Total
Mactech
Taichung International Golf
Country Club
HHB
HWALLAR OPTRONICS
(Fuzhou) CO., LTD.
Mithera
Beyond Limits, Inc.
BT
CIT
Suzhou Genki Fuhong Health
Management Co., Ltd.
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-current
‑
-
‑
‑
‑
‑
‑
‑
‑
‑
-
-
‑
-
-
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
18,369
Carrying
value
380,246
Holding
percentage
(%)
-
Fair value
380,246
Note
(Note 1)
2,140
175,783
6%
175,783
2,313
558,342
380
332
200
1,152
349
60
-
-
-
-
-
-
1%
1%
7%
5%
5%
14%
-
-
-
-
-
-
-
42,840
7%
42,840
1,650
31,135
7%
31,135
1,229
-
8%
-
73,975
7,920
-
7,920
-
19%
-
(Note 2)
873
128,160
-
128,160
4,356
17%
4,356
1,470,031
-
1,470,031
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
107
Table 3 Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2020)
Name of
holder
CIC
CET
CNC
CNC
Category and name of security
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
Structured deposits–SPD Bank
Yield Plus Structured Deposit
Relationship with
security issuer
‑
Account name
Financial assets at fair value
through profit or loss-current
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
-
Carrying
value
261,366
Holding
percentage
(%)
-
Fair value
261,366
Note
‑
‑
‑
Financial assets at fair value
through profit or loss-current
Financial assets at fair value
through profit or loss-current
Financial assets at fair value
through profit or loss-current
-
-
-
241,113
130,875
130,799
-
-
-
241,113
130,875
130,799
Note 1:The transaction had been eliminated in the consolidated financial statements.
Note 2:The carrying value is the remaining amount after deducting accumulated impairment.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
108
Table 4 Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Name of
company
Category and name
of security
Account
name
Name of
counter-party
Relationship
with the
company
CPC
CIT
CIT
CIT
CEC
CPO
CPO
CIC
CIC
CET
CET
CET
CET
Structured deposits–
SPD Bank Yield Plus
Structured Deposit
Financial assets
at fair value
through profit
or loss-current
Shanghai Pudong
Development
Bank
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits–
SPD Bank Yield Plus
Structured Deposit
Agricultural Bank
of China
Financial assets
at fair value
through profit
or loss-current
Financial assets
at fair value
through profit
or loss-current
Shanghai Pudong
Development
Bank
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
China CITIC
Bank
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
China CITIC
Bank
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Financial assets
at fair value
through profit
or loss-current
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
Structured deposits-
Bank of
Communications
Yun Tong Cai Fu.
Structured Deposit
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Financial assets
at fair value
through profit
or loss-current
Financial assets
at fair value
through profit
or loss-current
Financial assets
at fair value
through profit
or loss-current
Structured deposits-
The RMB "Open on
schedule" Financial
Product
Financial assets
at fair value
through profit
or loss-current
Agricultural Bank
of China
China CITIC
Bank
Bank of
Communications
Agricultural Bank
of China
Agricultural Bank
of China
Bank of China
Structured deposits-
SPD Bank Yield Plus
Structured Deposit
Financial assets
at fair value
through profit
or loss-current
Shanghai Pudong
Development
Bank
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
China CITIC
Bank
-
-
-
-
-
-
-
-
-
-
-
-
-
Note 1:Others were valuation gains and losses and foreign exchange gains and losses.
Note 2:Including gains and losses on disposal and foreign exchange gains and losses.
Beginning Balance
Purchases
Sales
Others
Ending Balance
Shares/ Units
(thousands)
-
Amount
394,013
Shares/ Units
(thousands)
-
Amount
385,196
Shares/ Units
(thousands)
-
Price
784,688
Cost
779,209
Gain (loss)
on disposal
5,479
(Note 2)
Shares/ Units
(thousands)
-
Amount
-
(Note 1)
Shares/ Units
(thousands)
-
Amount
-
(In Thousands of New Taiwan Dollars)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
437,840
-
-
-
-
-
-
-
-
-
-
-
-
-
3,152,190
855,992
641,994
1,044,310
941,591
342,397
427,996
-
-
-
-
-
-
-
1,743,032
1,711,984
863,317
855,992
646,956
641,994
1,061,102
1,044,310
958,576
941,591
346,182
342,397
436,110
427,996
804,633
-
554,026
547,835
449,395
855,992
427,996
1,198,388
-
-
-
-
217,649.00
213,998
867,292
855,992
871,923
865,836
1,211,355
1,198,388
31,048
(Note 2)
7,325
(Note 2)
4,962
(Note 2)
16,792
(Note 2)
16,985
(Note 2)
3,785
(Note 2)
8,114
(Note 2)
6,191
(Note 2)
3,651
(Note 2)
11,300
(Note 2)
6,087
(Note 2)
12,967
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
29,825
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
4,568
(Note 1)
5,716
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
1,470,031
-
-
-
-
-
-
261,366
241,113
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
109
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2020)
Name of
company
Name of
property
CVC
Plant
Transaction
date
September,
2020
Arcadyan
Vietnam
July 28, 2020
(Note 1)
Plant and
mechanical
and electrical
equipment
Transaction
amount
The
maximum
limit of the
overall
project is 100
million US
dollars.
Estimated
794,885
(Note 2)
Status of
payment
Depending
on progress
in
construction
Depending
on progress
in
construction
If the counter-party is a related party,
disclose the previous transfer information
Relationship
with the
Company
Non-related
party
Relationship
with the
Company
Not
applicable
Owner
Not
applicable
Date of
transfer
Not
applicable
Amount
Not
applicable
(In Thousands of New Taiwan Dollars)
References
for
determining
price
Purpose of
acquisition
and current
condition
Price
negotiation
Operating
purpose
Others
None
Counter-
party
L&K
Engineering
Vietnam,
LLC., and
Vietnam Jiuh
Jiang Long,
LLC.
Giza E&C
etc.
Non-related
party
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Manufacturing
purpose
None
Price
comparison
and price
negotiation
Note 1: On July 28, 2020, the Board of Directors of Arcadyan Vietnam made a resolution to build plant by lease. The total contract am ount is estimated to be 794,885 thousand (VND
691,204,153 thousand).
Note 2: As of December 31, 2020, contracts of hydrant, information equipment and renovation have not been signed and completed.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
110
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Transaction details
Percentage
of total
purchases/
(sales)
Amount
(362,834)
-
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Payment terms
120 days
Unit price
Similar to non-
related parties
Payment Terms
There is no significant
difference
Percentage
of total
notes/accounts
receivable
(payable)
Ending
Balance
272,826
0.1%
Note
(Note 2)
Purchase/
(Sale)
Sale
Sale
Sale
(613,725)
(0.1)%
90 days
(476,501)
-
-
90 days
120 days
Purchase
217,864
Purchase
131,063,501
13.5%
120 days
Purchase
150,400,041
15.5%
120 days
Purchase
27,468,420
2.8%
120 days
Purchase
28,091,599
2.9%
120 days
Company
Name
The
Company
Counter
party
UCGI
CBN
Cal-Comp
CEP
Nature of
relationship
Subsidiaries wholly
owned by the
Company
The Company's
subsidiaries
With the same
chairman
Subsidiaries wholly
owned by the
Company
CIH and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Just and its
subsidiaries
Subsidiaries wholly
owned by the
Company
HSI and its
subsidiaries
Subsidiaries wholly
owned by the
Company
BCI and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Etrade and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Henghao
Palcom
Subsidiaries wholly
owned by the
Company
Subsidiaries wholly
owned by the
Company
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference
There is no significant
difference.
293,229
0.1%
(Note 2)
307,456
0.1%
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Markup based on
BCI and its
subsidiaries' cost
-
-
(Note 2)
(27.4)%
(Note 2)
(6,550,748)
(3.5)%
(Note 2)
(13,129,981)
(7.0)%
(Note 2)
(10,533,140)
(5.6)%
(Note 2)
(3,767,885)
(2.0)%
(Note 2)
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Purchase
28,106,438
2.9% Net 60 days from purchase Markup based on
Etrade and its
subsidiaries' cost
Purchase
120,250
-
120 days
Similar to non-
related parties
There is no significant
difference.
(5,448)
-
(Note 2)
Sale
(101,649)
- Net 60 days from delivery Similar to non-
related parties
There is no significant
difference
11,627
-
(Note 2)
Just and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(150,302,684)
(99.0)%
120 days
CIH and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(1,433,990)
(0.9)%
120 days
Purchase
1,363,778
(0.9)%
120 days
Purchase
133,166
(0.1)%
120 days
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(131,048,882)
(98.1)%
120 days
CEB
Just and its
subsidiaries
BCI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(151,865)
-
120 days
Sale
(1,377,997)
(0.3)%
120 days
Sale
(2,473,443)
(0.6)%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
6,550,748
97.4%
(Note 2)
1,136,914
2.5%
(Note 2)
(1,288,223)
(2.0)%
(Note 2)
(101,939)
(0.2)%
(Note 2)
51,675,245
95.3%
(Note 2)
69,475
0.1%
(Note 2)
1,288,223
1.0%
(Note 2)
1,548,460
1.2%
(Note 2)
(Continued)
Percentage
of total
notes/accounts
receivable
(payable)
Ending
Balance
(5,576)
-
Note
(Note 2)
(1,136,914)
(0.9)%
(Note 2)
2,539,028
2.0%
(Note 2)
(293,229)
(40.0)%
(Note 2)
10,533,140
87.7%
(Note 2)
5,576
-
(Note 2)
(1,548,460)
(5.0)%
(Note 2)
2,360,423
7.3%
(Note 2)
Payment Terms
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
111
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
CIH and its
subsidiaries
Counter
party
Nature of
relationship
BCI and its
subsidiaries
Just and its
subsidiaries
HSI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Percentage
of total
purchases/
(sales)
Amount
589,141
0.1%
Purchase/
(Sale)
Purchase
Payment terms
120 days
Purchase
1,436,851
0.3%
120 days
Sale
(3,061,483)
(0.7)%
120 days
Unit price
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Parent company
Purchase
610,939
32.0% Net 90 days from delivery
-
Parent company
Sale
(28,308,716)
(97.8)%
120 days
Sale
(427,368)
(0.4)%
120 days
Purchase
2,472,797
2.1%
120 days
Sale
(764,533)
(0.6)%
120 days
Markup based on
BCI and its
subsidiaries' cost
According to markup
pricing
According to markup
pricing
According to markup
pricing
CBN
BCI and its
subsidiaries
Compal Electronic,
Inc.
Compal Electronic,
Inc.
CIH and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
CEB
BCI and its
subsidiaries
CIH and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
CEB
Sale
(986,502)
(0.8)%
120 days
According to markup
pricing
There is no significant
difference
1,380,707
4.3%
(Note 2)
Purchase
975,309
10.5%
120 days
Similar to non-
related parties
There is no significant
difference
(1,380,707)
(43.5)%
(Note 2)
Purchase
152,379
1.6%
120 days
Similar to non-
related parties
There is no significant
difference
(69,475)
(4.7)%
(Note 2)
Etrade and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(28,152,136)
(99.6)% Net 60 days from delivery According to markup
pricing
HSI and its
subsidiaries
With the same
ultimate parent
company
Purchase
489,035
2.2% Net 60 days from purchase Similar to non-
related parties
UCGI
Palcom
Henghao
CEP
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Parent company
Purchase
370,916
Parent company
Purchase
101,823
Parent company
Parent company
Sale
Sale
(119,412)
(234,154)
86.6%
120 days
Similar to non-
related parties
94.2% Net 60 days from purchase Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
120 days
120 days
1.1%
(99.3)%
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(27,689,174)
(97.7)%
120 days
CIH and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Just and its
subsidiaries
With the same
ultimate parent
company
Purchase
3,064,654
10.5%
120 days
Purchase
759,770
2.6%
120 days
Sale
(138,402)
0.5%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
3,767,885
98.6%
(Note 2)
(287,543)
(5.3)%
(Note 2)
(272,826)
(99.9)%
(Note 2)
(11,627)
(96.7)%
(Note 2)
5,448
0.2%
(Note 2)
-
-
(Note 2)
13,129,981
97.2%
(Note 2)
(2,539,028)
(11.8)%
(Note 2)
(2,360,423)
(11.0)%
(Note 2)
101,939
(0.8)%
(Note 2)
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference
There is no significant
difference
There is no significant
difference
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
112
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
HSI and its
subsidiaries
Counter
party
Etrade and its
subsidiaries
Nature of
relationship
With the same
ultimate parent
company
Purchase/
(Sale)
Sale
Transaction details
Percentage
of total
purchases/
(sales)
Amount
(505,022)
(1.8)%
Payment terms
120 days
Unit price
Similar to non-
related parties
Payment Terms
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Arcadyan
CNC
Acradyan
Vietnam
Acradyan
Germany
Acradyan
USA
Acradyan
AU
Acradyan
Germany
Acradyan
USA
Acradyan
AU
CNC
Acradyan
Vietnam
Arcadyan
Arcadyan
Arcadyan
Arcadyan
Arcadyan
Arcadyan's subsidiary
Sale
(867,017)
(3.0)% Net 150 days from delivery
Arcadyan's subsidiary
Sale
(5,413,289)
(18.0)% Net 120 days from delivery
Arcadyan's subsidiary
Sale
(1,394,596)
(5.0)% Net 60 days from the end of
the month
-
-
-
Arcadyan's subsidiary Purchase
11,026,936
27.0% Net 120 days from delivery According to markup
Arcadyan's subsidiary Purchase
1,065,328
3.0% Net 180 days from the end of
the month
pricing
According to markup
pricing
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(11,026,936)
(100.0)% Net 120 days from delivery According to markup
Sale
(1,065,328)
(100.0)% Net 180 days from the end of
the month
Purchase
867,017
100.0% Net 150 days from delivery
Purchase
5,413,289
100.0% Net 120 days from delivery
Purchase
1,394,596
100.0% Net 60 days from the end of
the month of delivery
pricing
According to markup
pricing
-
-
-
-
-
-
-
-
-
-
-
-
-
Note 1: The remaining balance is the net value of commissioned processing and sales of raw material.
Note 2: The transactions had been eliminated in the consolidated financial statements.
Note 3: The amount of other receivables on December 31, 2020 is 303,959 thousand dollars.
Percentage
of total
notes/accounts
receivable
(payable)
Ending
Balance
287,543
2.0%
Note
(Note 2)
242,935
4.0%
(Note 2)
1,039,758
17.0%
(Note 2)
22,357
-
(Note 2)
(3,407,485)
(40.0)% (Note 1、2)
(Note 3)
- (Note 1、2)
3,407,485
94.0% (Note 1、2)
(Note 3)
- (Note 1、2)
(242,935)
(100.0)%
(Note 2)
(1,039,758)
(100.0)%
(Note 2)
(22,357)
(100.0)%
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
113
Table 7 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(December 31, 2020)
Nature of
relationship
Ending Balance
Turnover
rate
Name of Company
The Company
Counter-party
CBN
The Company
UCGI
The Company
Cal-comp
Just and its
subsidiaries
Just and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
Compal Electronic,
Inc.
CIH and its
subsidiaries
Compal Electronic,
Inc.
Just and its
subsidiaries
CIH and its
subsidiaries
BCI and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
Etrade and its
subsidiaries
HSI and its
subsidiaries
HSI and its
subsidiaries
Compal Electronic,
Inc.
HSI and its
subsidiaries
CEB
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Etrade and its
subsidiaries
HSI and its
subsidiaries
Just and its
subsidiaries
The Company's
subsidiary
The Company's
subsidiary
With the same
chairman
Parent company
With the same
ultimate parent
company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
company
Arcadyan
Arcadyan
Arcadyan
Arcadyan Germany Arcadyan's subsidiary
Arcadyan USA
Arcadyan's subsidiary
Arcadyan Vietnam Arcadyan's subsidiary
CNC
Arcadyan
With the same
ultimate parent
company
Note 1:Balance as of March 16, 2021.
Note 2:Balance as of February 26, 2021.
Note 3:Other receivables due to purchasing on behalf of related parties.
Note 4:Accounts receivables due to processing raw material.
293,229
272,826
307,456
6,550,748
1,136,914
51,675,245
1,288,223
1.97
2.28
3.10
7.39
2.52
2.44
2.14
1,548,460
3.14
2,539,028
2.35
10,533,140
2,360,423
3.03
0.38
1,380,707
0.92
3,767,885
13,129,981
287,543
5.73
1.76
3.51
101,939
2.72
242,935
1,039,758
303,959
(Note 3)
3,407,485
(Note 4)
2.73
2.91
(Note 3)
3.38
Overdue
Amount
-
Action taken
-
(In Thousands of New Taiwan Dollars)
Amounts received in
subsequent period
176,313
(Note 1)
Allowance
for bad
debts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (Note 1)
- (Note 1)
(Note 1)
(Note 1)
-
-
51,675,245
(Note 1)
- (Note 1)
-
-
(Note 1)
(Note 1)
10,533,140
(Note 1)
-
(Note 1)
200,985
(Note 1)
-
(Note 1)
3,391,483
(Note 1)
100,280
(Note 1)
95,173
(Note 1)
216,165
1,019,515
7,278
(Note 2)
(Note 2)
(Note 2)
3,223,397
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
114
Table 8 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2020)
No.
(Note 1)
0
Company name
Counter party
The Company
CBN
Relationship
(Note 2)
1
Accounts name
Sales Revenue
Intercompany transactions
(In Thousands of New Taiwan Dollars)
0
The Company
UCGI
0
The Company
Palcom
1
1
2
2
2
2
2
3
3
JUST and its
subsidiaries
The Company
JUST and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
The Company
CIH and its
subsidiaries
CEB
CIH and its
subsidiaries
JUST and its
subsidiaries
CIH and its
subsidiaries
BCI and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
BCI and its
subsidiaries
The Company
BCI and its
subsidiaries
CIH and its
subsidiaries
1
1
2
3
2
3
3
3
3
2
3
Accounts Receivable
Sales Revenue
Accounts Receivable
Sale Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sale Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Amount
Terms
613,725 There is no significant difference
of price to non-related parties. The
credit period is net 90 days.
〃
293,229
362,834 There is no significant difference
of price to non-related parties. The
credit period is net 120 days.
〃
272,826
101,649 There is no significant difference
of price to non-related parties. The
credit period is net 60 days from
delivery, and will be adjusted if
necessary.
11,627
〃
150,302,684 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
〃
6,550,748
1,433,990 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
1,136,914
〃
131,048,882 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
51,675,245
〃
151,865 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
69,475
〃
1,377,997 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
〃
1,288,223
2,473,443 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
〃
1,548,460
3,061,483 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
〃
2,539,028
28,308,716 The price is based on BCI and its
subsidiaries' operating cost. The
credit period is net 120 days, and
will be adjusted if necessary.
Accounts Receivable
Sales Revenue
10,533,140
〃
427,368 The price is based on the
Accounts Receivable
5,576
〃
operating cost. The credit period
is net 120 days, and will be
adjusted if necessary.
Percentage of the
consolidated net
revenue or total
assets
0.1%
0.1%
-
0.1%
-
-
14.3%
1.4%
0.1%
0.2%
12.5%
11.1%
-
-
0.1%
0.3%
0.2%
0.3%
0.3%
0.5%
2.7%
2.3%
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
115
Table 8 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2020)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1)
3
Company name
Counter party
BCI and its
subsidiaries
HSI and its
subsidiaries
Relationship
(Note 2)
3
3
4
BCI and its
subsidiaries
CEB
Etrade and its
subsidiaries
The Company
5
Henghao
The Company
6
CEP
The Company
7
7
7
HSI and its
subsidiaries
The Company
HSI and its
subsidiaries
JUST and its
subsidiaries
HSI and its
subsidiaries
Etrade and its
subsidiaries
8
Arcadyan
Arcadyan
Germany
8
Arcadyan
Arcadyan USA
8
Arcadyan
Arcadyan AU
3
2
2
2
2
3
3
3
3
3
Accounts name
Sales Revenue
Amount
Terms
764,533 The price is based on the
operating cost. The credit period
is net 120 days, and will be
adjusted if necessary.
Accounts Receivable
Sales Revenue
2,360,423
〃
986,502 The price is based on the
operating cost. The credit period
is net 120 days.
Accounts Receivable
Sales Revenue
1,380,707
28,152,136 The price is based on the
〃
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
operating cost. The credit period
is net 60 days from delivery, and
will be adjusted if necessary.
3,767,885
〃
119,412 There is no significant difference
of price to non-related parties. The
credit period is net 120 days.
5,448
〃
234,154 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
27,689,174 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
13,129,981
〃
138,402 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
〃
101,939
505,022 There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
〃
287,543
867,017 There is no significant difference
of price to non-related parties. The
credit period is net 150 days from
delivery.
242,935
〃
5,413,289 There is no significant difference
of price to non-related parties. The
credit period is net 120 days from
delivery.
〃
1,039,758
1,394,596 There is no significant difference
of price to non-related parties. The
credit period is net 60 days from
the end of the month of delivery.
8
Arcadyan
Arcadyan Vietnam
3
Accounts Receivable
Other Receivable
22,357
〃
303,959 The credit period is net 180 days
from the end of the month of
invoice date and depended on
funding demand.
Percentage of the
consolidated net
revenue or total
assets
0.1%
0.5%
0.1%
0.3%
2.7%
0.8%
-
-
-
2.6%
2.8%
-
-
-
0.1%
0.1%
0.1%
0.5%
0.2%
0.1%
-
0.1%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
116
Table 8 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2020)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1)
9
Company name
Counter party
CNC
Arcadyan
Relationship
(Note 2)
3
Accounts name
Processing Revenue
Amount
11,026,936 The price is based on the
Terms
operating cost. The credit period
is net 120 days from delivery and
depended on funding demand.
10 Arcadyan Vietnam Arcadyan
3
Accounts Receivable
Processing Revenue
3,407,485
1,065,328 The credit period is net 180 days
〃
from the end of the month of
invoice date and depended on
funding demand.
Percentage of the
consolidated net
revenue or total
assets
1.1%
0.7%
0.1%
Note 1: The numbers filled in as follows:
1.0 represents the Company.
2. Subsidiaries are sorted in a numerical order starting from 1.
Note 2: Transactions labeled as follows:
1. represents transactions between the parent company and its subsidiaries.
2. represents transactions between the subsidiaries and the parent company.
3. represents transactions between subsidiaries.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
117
Table 9 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
Investor
Company
Investee
Company
The Company Bizcom
Main Businesses
and Products
Milpitas, USA Warranty services and
Location
December 31,
2020
December 31,
2019
Shares
36,369
36,369
100
Percentage
of
Ownership
100%
Carrying
Value
431,834
Shares
100
Percentage
of
Ownership
100%
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
8,266
8,266
(Note 2)
Original Investment Amount
Ending Balance
The highest holdings in
the period
(In Thousands of New Taiwan Dollars/ shares)
Just
CIH
Panpal
Gempal
marketing of LCD TVs and
notebook PCs
Investment
British Virgin
Islands
British Virgin
Islands
Investment
1,480,509
1,480,509
48,010
100%
7,734,191
48,010
100%
3,843
3,843
(Note 2)
1,787,680
1,787,680
53,001
100%
35,241,171
53,001
100%
2,502,193
2,502,193
(Note 2)
Taipei City
Investment
5,171,837
5,171,837
500,000
100%
4,911,705
500,000
100%
9,328
(28,650)
(Note 2)
Taipei City
Investment
900,036
900,036
90,000
100%
1,729,287
90,000
100%
137,732
115,689
(Note 2)
(Note 1)
Kinpo Group management
Taipei City
Consultation, training
services, etc.
Ripal
Tainan City Manufacturing of electric
appliance and audiovisual
electric products
3,000
3,000
300
38%
4,659
300
83
31
(Note 1)
60,000
60,000
6,000
100%
83,481
6,000
100%
12,248
6,849
(Note 2)
Unicore
Taipei City Management&Consultant,
200,000
200,000
20,000
100%
125,283
20,000
100%
(20,298)
(20,381)
(Note 2)
rental and leasing business and
wholesale and retail of medical
equipments
Lead-Honor Optronics. Co., Ltd.
(“Lead-Honor”)
CEH
Taoyuan City Manufacturing of electric
appliance and audiovisual
electric products
Investment
British Virgin
Islands
Shennona Taiwan
Taipei City
Management&Consultant,
rental and leasing business,
wholesale and retail sale of
precision instruments and
International Trade
42,000
42,000
2,772
42%
-
2,772
42%
34
34
1
100%
3,356,563
1
100%
-
-
-
-
(Note 2)
6,000
6,000
600
100%
2,773
600
100%
(1,340)
(1,519)
(Note 2)
Allied Circuit
Taoyuan City Production and sales of PCB
395,388
395,388
10,158
20%
390,455
10,158
20%
531,744
108,556
Maxima Ventures I, Inc.
(“Maxima”)
Aco Smartcare
Lipo Holding Co., Ltd.(“Lipo”)
CPE
ATK
Taipei City
boards
Investment
Hsinchu City Wholesale and retail sale of
computer software, software
design services, data
processing services, wholesale
and retail sale of electronic
materials, wholesale and retail
sale of precision instruments,
and biotechnology services
Investment
Cayman
Islands
The
Netherlands
Hsinchu City Design, research &
Investment
Crownpo
Taipei City
development, and selling of
DVD, Combo, CD-RW Drives
Manufacturing, processing, and
selling resistor chips,
networking chips, diodes,
multilayer ceramic capacitors,
semiconductor devices, and
selling electronic products
1,260
1,260
126
23%
5,699
126
23%
8,206
701
90,000
90,000
100,000
52%
73,564
100,000
52%
(23,856)
(12,414)
(Note 2)
489,450
489,450
98
49%
575,047
98
49%
119,774
58,689
197,463
197,463
6,427
100%
788,259
6,427
100%
6,256
6,256
(Note 2)
-
-
-
-
-
-
-
56
15
(Note 2)
149,547
149,547
3,739
33%
58,126
3,739
33%
5,947
1,976
Hong Ji
Hong Jin
Mactech
Auscom
Arcadyan
FGH
Shennona
HSI
CEP
Investment
Taipei City
Taipei City
Investment
Taichung City Manufacturing of equipment
1,000,000
295,000
219,601
1,000,000
295,000
219,601
100,000
29,500
21,756
100%
100%
53%
1,141,439
351,308
235,534
100,000
29,500
21,756
100%
100%
53%
110,567
38,077
17,515
110,567
38,084
9,735
(Note 2)
(Note 2)
(Note 2)
and lighting, retailing of
equipment and international
trading
Austin, TX
USA
R&D of notebook PC related
products and components
Hsinchu City R&D, manufacturing and sales
of wireless network, integrated
household electronics, and
mobile office products
101,747
101,747
3,000
100%
124,827
3,000
100%
4,635
4,635
(Note 2)
1,325,132
1,325,132
41,305
20%
2,386,293
41,305
20%
1,713,942
339,600
(Note 2)
British Virgin
Islands
Delaware,
USA
British Virgin
Islands
Poland
Investment
2,754,741
2,754,741
89,755
100%
4,796,528
89,755
100%
112,909
112,909
(Note 2)
Medical care IOT business
32,665
32,665
2,600
100%
1,222
2,600
100%
(84)
(84)
(Note 2)
Investment
1,346,814
1,346,814
42,700
54%
357,637
42,700
54%
(190,132)
(162,171)
(Note 2)
Maintenance and warranty
services of notebook PCs
90,156
90,156
136
100%
18,666
136
100%
842
2,244
(Note 2)
Hippo Screen
Taipei City Management&Consultant,
42,000
42,000
2,100
70%
16,949
4,200
70%
(26,086)
(17,920)
(Note 2)
Infinno Technology Corporation
(“Infinno”)
Hsinchu
County
Rental and Leasing Business,
wholesale and retail sale of
precision instruments and
International Trade
Manufacturing of electronic
components, wholesale and
retail sale of precision
instruments and electronic
materials
109,837
109,837
5,650
27%
13,017
5,650
27%
(15,372)
(4,182)
HengHao
Taipei City Manufacturing of PCs,
5,529,757
5,529,757
20,015
100%
(269,253)
20,015
100%
10,001
8,553
(Note 2)
computer periphery devices,
and electronic components
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
118
Table 9 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
Investor
Company
The Company BCI
Investee
Company
CBN
Location
British Virgin
Islands
Hsinchu
County
Original Investment Amount
Ending Balance
The highest holdings in
the period
Main Businesses
and Products
Investment
December 31,
2020
2,636,051
December 31,
2019
2,636,051
Shares
90,820
Percentage
of
Ownership
100%
Carrying
Value
6,462,523
Shares
90,820
Percentage
of
Ownership
100%
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
613,030
613,030
(Note 2)
(In Thousands of New Taiwan Dollars/ shares)
R&D and sales of cable
modem, digital setup box, and
other communication products
284,827
284,827
29,060
43%
713,557
29,060
43%
46,723
20,297
(Note 2)
Rayonnant
Taipei City Manufacturing and sales of
295,000
295,000
29,500
100%
125,319
29,500
100%
66,935
69,187
(Note 2)
PCs, computer periphery
devices, and electronic
components
CRH
Acendant Private Equity
Investment Ltd. (“APE”)
Etrade
Webtek
Forever
UCGI
Palcom
Avalue Technology, Inc.
CORE
GLB
CGSP
ARCE
Investment
Investment
Investment
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Taipei City Manufacturing and retail sale
Investment
Investment
of computers and electronic
components
Selling of mobile phones
Manufacturing, processing, and
import and export business of
industrial motherboards
Taipei City
New Taipei
City
British Virgin
Islands
New Taipei
City
Poland
Taipei City
Manufacturing and wholesale
of medical equipment
Maintenance and warranty
services of notebook PCs
Biotechnology services,
research & development
services, intellectual property
rights, wholesale of animal
medication, retail sale and
management advisory.
Cancerous immunocyte therapy
and regenerative medicine
Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
Raypal Biomedical Co.,Ltd.
Taipei City
Panpal
Arcadyan
Hsinchu City
Investment
4,318,860
4,318,860
147,000
100%
7,356,671
147,000
100%
74,866
74,866
(Note 2)
377,328
377,328
12,500
100%
191,019
12,500
100%
68,396
68,396
(Note 2)
943,922
943,922
31,253
35%
994,883
31,253
35%
142,340
49,423
1,532,029
1,532,029
46,900
65%
(719,895)
46,900
65%
155,770
(162,840)
(Note 2)
3,340
1,575
3,340
1,575
100
50
100%
572,869
100%
1,329,114
100
50
100%
55,882
55,882
(Note 2)
100%
(53,455)
(53,455)
(Note 2)
199,999
100,000
10,000
100%
(381,227)
10,000
100%
(22,052)
(21,929)
(Note 2)
100,000
547,595
100,000
559,189
10,000
14,924
100%
21%
112,424
625,188
10,000
15,024
100%
22%
6,801
215,886
6,801
47,355
(Note 2)
246,860
246,860
15,000
50%
318,019
15,000
50%
24,262
12,032
(Note 2)
37
60,000
-
-
-
100%
-
-
100%
(37)
(37)
(Note 2)
20,000
33%
59,852
20,000
33%
(27,062)
(148)
155,076
-
3,446
30%
151,051
3,446
30%
(38,071)
(4,025)
279,202
279,202
8,192
4%
518,053
8,192
4%
1,713,942
82,597,631
Allied Circuit
Taoyuan City Production and selling of PCB
148,263
148,263
2,927
6%
112,513
2,927
6%
531,744
Gempal
Others
Arcadyan
Allied Circuit
Hong Ji
Others
Arcadyan
boards
Hsinchu City Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
Taoyuan City Production and selling of PCB
boards
Hsinchu City Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
306,655
306,655
9,279
4%
306,536
611,802
9,279
4%
1,713,942
53,645
53,645
3,220
6%
123,764
3,220
6%
531,744
306,655
306,655
9,279
4%
2,311
611,802
9,279
4%
1,713,942
Allied Circuit
Taoyuan City Production and selling of PCB
10,389
12,274
851
2%
27,838
1,041
2%
531,744
Hong Jin
Arcadyan
boards
Hsinchu City Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
131,942
131,942
4,609
2%
288,893
4,609
2%
1,713,942
3,966,905
Investment
gain(losses)
recognized by
Panpal
(Note 2)
Investment
gain(losses)
recognized by
Panpal
Investment
gain(losses)
recognized by
Gempal
Investment
gain(losses)
recognized by
Gempal
Investment
gain(losses)
recognized by
Hong Ji
Investment
gain(losses)
recognized by
Hong Ji
Investment
gain(losses)
recognized by
Hong Jin
(Note 2)
(Note 2)
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
119
Table 9 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
Original Investment Amount
Ending Balance
The highest holdings in
the period
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Location
Main Businesses
and Products
Just
CDH (HK)
Hong Kong
Investment
December 31,
2020
1,774,233
December 31,
2019
1,774,233
Shares
62,298
Percentage
of
Ownership
100%
Carrying
Value
5,434,537
Shares
62,298
Percentage
of
Ownership
100%
Net income
(losses) of
investee
Share of
profits/losses of
investee
(19,931) Investment
gain(losses)
recognized by
Just
(314) Investment
gain(losses)
recognized by
Just
(3) Investment
gain(losses)
recognized by
CII
(519) Investment
gain(losses)
recognized by
CII
Investment
gain(losses)
recognized by
CII
Investment
gain(losses)
recognized by
CII
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
(213,296) Investment
gain(losses)
recognized by
HSI
(55,369) Investment
gain(losses)
recognized by
HSI
(213,296) Investment
gain(losses)
recognized by
IUE
(55,369) Investment
gain(losses)
recognized by
Goal
CII
CPI
CII
Smart
AEI
MEL
MTL
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
263,298
263,298
9,245
100%
239,796
9,245
100%
14,240
14,240
500
100%
852,569
500
100%
9,450
Investment
gain(losses)
recognized by
Just
28
28
1
100%
363
1
100%
U.S.A
Sales and maintenance of LCD
TVs
28,480
28,480
1,000
100%
45,117
1,000
100%
U.S.A
Investment
234,504
234,504
U.S.A
Investment
28
28
-
-
100%
194,325
100%
29
-
-
100%
207
100%
-
CIH
CIH (HK)
Hong Kong
Investment
2,130,375
2,130,375
74,803
100%
33,766,486
74,803
100%
2,734,885
Jenpal
PFG
FWT
CCM
HSI
IUE
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
209,328
209,328
7,350
100%
101,170
7,350
100%
1,288
28
28
1
100%
434,865
1
100%
22,376
424,352
424,352
14,900
100%
424,829
14,900
100%
51
145,248
145,248
5,100
51%
26,071
5,100
51%
870
1,908,160
1,908,160
67,000
100%
1,111,077
67,000
100%
Goal
British Virgin
Islands
Investment
361,696
361,696
12,700
100%
300,321
12,700
100%
IUE
CVC
Vietnam
Goal
CDM
Vietnam
R&D, manufacturing, sales,
and maintenance of notebook
PCs, computer monitors, LCD
TVs and electronic components
Construction of and investment
in infrastructure in Ba-Thien
industrial district of Vietnam
1,908,160
1,908,160
67,000
100%
1,111,077
67,000
100%
361,696
361,696
12,700
100%
301,850
12,700
100%
BCI
CMI
British Virgin
Islands
Investment
2,301,754
2,301,754
80,820
100%
4,045,228
80,820
100%
396,577
PRI
British Virgin
Islands
Investment
284,800
284,800
10,000
100%
2,417,295
10,000
100%
216,453
CORE
BSH
British Virgin
Islands
Investment
4,186,560
4,186,560
147,000
100%
7,356,672
147,000
100%
74,866
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
CORE
BSH
Mithera
Cayman
Islands
Investment
142,400
142,400
-
99%
136,264
-
99%
HSI
British Virgin
Islands
Investment
1,053,760
1,053,760
37,000
46%
1,053,760
37,000
46%
(3,109) Investment
gain(losses)
recognized by
BSH
(190,132) Investment
gain(losses)
recognized by
BSH
Forever
GIA
British Virgin
Islands
Selling of mobile phones
-
-
-
100%
-
-
100%
-
Investment
gain(losses)
recognized by
Forever
Note
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
120
Table 9 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Forever
CWV
Location
Vietnam
Original Investment Amount
Ending Balance
The highest holdings in
the period
Main Businesses
and Products
December 31,
2020
December 31,
2019
Shares
R&D, manufacturing, sales,
and maintenance of notebook
PCs, computer monitors, LCD
TVs and electronic components
56,960
-
-
Percentage
of
Ownership
100%
Carrying
Value
Shares
3,203
-
Percentage
of
Ownership
100%
Net income
(losses) of
investee
Share of
profits/losses of
investee
(55,790) Investment
gain(losses)
recognized by
Forever
Webtek
Etrade
British Virgin
Islands
Investment
712,000
712,000
25,000
35%
(124,856)
25,000
35%
155,770
Investment
gain(losses)
recognized by
Webtek
Unicore
Raycore
Taipei City
Animal medication retail and
wholesale
25,500
25,500
1,275
51%
14,720
1,275
51%
(8,218) Investment
gain(losses)
recognized by
Unicore
Arcadyan
Arcadyan Holding
British Virgin
Islands
Investment
2,359,732
2,064,032
69,780
100%
2,240,149
69,780
100%
95,019
Arcadyan USA
U.S.A
Sales of wireless network
products
23,055
23,055
1
100%
91,507
1
100%
62,073
Arcadyan Germany
Germany
Technology support and sales
of wireless network products
1,125
1,125
0.5
100%
76,874
0.5
100%
5,667
Arcadyan Korea
Korea
Sales of wireless network
products
2,879
2,879
20
100%
13,858
20
100%
6,446
Zhi-bao
Taipei City
Investment
48,000
48,000
34,980
100%
423,997
34,980
100%
9,632
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
TTI
Taipei City
R&D and sales of household
digital products
308,726
308,726
25,028
61%
503,434
25,028
61%
AcBel Telecom
Taipei City
Investment
23,000
23,000
4,494
51%
32,700
4,494
51%
(193,291) Investment
gain(losses)
recognized by
Arcadyan
(16,432) Investment
gain(losses)
recognized by
Arcadyan
Arcadyan UK
UK
Technical support of wireless
network products
1,988
1,988
50
100%
3,555
50
100%
446
Arcadyan AU
Australia
Sales of wireless network
products
1,161
1,161
50
100%
46,106
50
100%
9,619
CBN
Hsinchu
County
Sales of communication and
electronic components
11,925
11,925
533
1%
13,204
533
1%
46,723
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Arcadyan RU
Russia
Sales of wireless network
products
2,492
-
-
100%
2,142
-
100%
Arcadyan and
Zhi-bao
Arcadyan Brasil
Brazil
Sales of wireless network
products
81,593
81,593
968
100%
(16,192)
968
100%
Arcadyan
Holding
Sinoprime
British Virgin
Islands
Investment
542,544
257,744
19,050
100%
453,544
19,050
100%
(243) Investment
gain(losses)
recognized by
Arcadyan
(10,717) Investment
gain(losses)
recognized by
Arcadyan
(10,815) Investment
gain(losses)
recognized by
Arcadyan
Holding
Arch Holding
British Virgin
Islands
Investment
313,593
313,593
35
100%
886,668
35
100%
62,526
Investment
gain(losses)
recognized by
Arcadyan
Holding
TTI
Quest
Samoa
Investment
34,176
34,176
1,200
100%
32,776
1,200
100%
TTJC
Japan
Sales of household digital
electronic products
9,626
4,130
0.7
100%
5,947
0.7
100%
Quest
Exquisite
Samoa
Investment
33,322
33,322
1,170
100%
19,908
1,170
100%
AcBel
Telecom
Leading Images
British Virgin
Islands
Investment
-
1,424
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless
network products
541,120
256,320
-
-
-
-
50
100%
100%
449,357
-
100%
(59,064) Investment
gain(losses)
recognized by
TTI
(1,588) Investment
gain(losses)
recognized by
TTI
(59,068) Investment
gain(losses)
recognized by
Quest
(14,432) Investment
gain(losses)
recognized by
AcBel Telecom
(10,815) Investment
gain(losses)
recognized by
Sinoprime
Note
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2、3)
(Note 2)
(Continued)
Net income
(losses) of
investee
Share of
profits/losses of
investee
(768) Investment
gain(losses)
recognized by
Leading Images
Investment
gain(losses)
recognized by
Zhi-bao
46,723
Investment
gain(losses)
recognized by
Rayonnant
Investment
gain(losses)
recognized by
Rayonnant
Investment
gain(losses)
recognized by
CRH
Investment
gain(losses)
recognized by
APH
Investment
gain(losses)
recognized by
APH
Note
(Note 2、4)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
121
Table 9 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
Original Investment Amount
Ending Balance
The highest holdings in
the period
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Leading
Images
Investee
Company
Astoria GmbH
Location
Germany
Main Businesses
and Products
December 31,
2020
December 31,
2019
Shares
Sales of wireless network
products
-
874
-
Percentage
of
Ownership
-
Carrying
Value
Shares
-
25
Percentage
of
Ownership
100%
Zhi-bao
CBN
Rayonnant
APH
Hsinchu
County
Produces and sales of
communication and electronic
components
British Virgin
Islands
Investment
36,272
36,272
13,140
20%
325,386
13,140
20%
257,454
257,454
8,651
41%
126,616
8,651
41%
105,538
Forming Co., Ltd.
Taoyuan City R&D and manufacturing of
27,300
27,300
1,820
21%
-
1,820
21%
-
CRH
APH
APH
PEL
electronic materials
British Virgin
Islands
Investment
British Virgin
Islands
Investment
356,000
356,000
12,500
59%
191,019
12,500
59%
105,538
89,740
89,740
3,151
100%
38,083
3,151
100%
3,973
Rayonnant(HK)
Hong Kong
Investment
512,640
512,640
18,000
100%
271,991
18,000
100%
101,565
HHT
HHA
HHA
HHB
British Virgin
Islands
Investment
British Virgin
Islands
Investment
1,429,235
1,429,235
46,882
100%
(183,304)
46,882
100%
1,335,200
1,335,200
46,882
100%
(183,245)
46,882
100%
(163,529) Investment
gain(losses)
recognized by
HHT
(163,529) Investment
gain(losses)
recognized by
HHA
HHB
HengHao Trading Co., Ltd.
British Virgin
Islands
Investment
-
285
-
-
-
10
100%
5
Investment
gain(losses)
recognized by
HHB
CBN
CBNB
Belgium
CBNN
The
Netherlands
The import and export business
of broad band network
products and related
components, as well as
technical support and advisory
services
The import and export business
of broad band network
products and related
components, as well as
technical support and advisory
services
6,842
6,842
20
100%
6,321
20
100%
(256) Investment
gain(losses)
recognized by
CBN
7,016
7,016
20
100%
6,848
20
100%
(Note 2)
(135) Investment
gain(losses)
recognized by
CBN
FGH
Wah Yuen Technology Holding Ltd.
and its subsidiaries
Mauritius
Investment
2,556,236
2,556,236
95,862
37%
4,861,814
95,862
37%
112,954
Investment
gain(losses)
recognized by
FGH
GLB
Rapha
New Taipei
City
Detectors and test strip
6,500
6,500
1,275
100%
(36)
1,275
100%
Mactech
Taiwan Intelligent Robotics
Company, LTD.
Taipei City
City
Manufacturing of equipment
43,200
43,200
2,160
20%
28,103
2,160
20%
(Note 2)
(334) Investment
gain(losses)
recognized by
GLB
(38,817) Investment
gain(losses)
recognized by
Mactech
Note 1: The carrying value had been deducted $559,812 and $321,435 of the Company’s stock held by Panpal and Gempal, respectively.
Note 2: The transactions had been eliminated in the consolidated financial statements.
Note 3: The liquidation procedures had been completed on December 7,2020.
Note 4: The liquidation procedures had been completed on October 14,2020.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
122
Table 10 Information on investment in Mainland China:
(December 31, 2020)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2020
Investment flows
Outflow Inflow
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
1,053,760
143,952
100%
143,952
Accumulated
remittance of
earnings in
current
period
-
Book value
1,995,724
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2020
1,053,760
Total amount of
paid-in capital
1,053,760
Method of
investment
(Note 1)
569,600
(Note 2)
569,600
341,760
(Note 2)
341,760
261,340
(Note 2)
(Note 3)
68,715
(Note 2)
(Note 3)
28,480
(Note 2)
28,480
8,711
(Note 2)
(Note 3)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
569,600
(3,408)
100%
(3,408)
102,664
341,760
381,455
100%
4,768,823
-
-
207,001
100%
207,001
13,366
(1,831)
51%
(934)
(43,177)
28,480
39,641
100%
39,641
(190,957)
-
1,960
100%
1,960
(25,586)
-
-
-
-
-
-
911,360
(Note 1)
379,638
-
-
379,638
92,284
43%
39,848
426,972
-
569,600
(Note 1)
41,866
-
-
41,866
129,313
48%
61,553
460,351
-
341,760
(Note 2)
341,760
344,608
(Note 1)
344,608
683,520
(Note 2)
683,520
-
-
-
-
-
-
341,760
916,689
100%
916,689
8,030,522
344,608
(25)
100%
(25)
2,810,923
683,520
1,454,332
100%
1,454,328
20,913,770
-
-
-
(Continued)
Name of
investee
CPC
CDT
CET
CSD
Zheng Ying
Electronics
(Chongqing)
Co., Ltd.
BT
CGS
LIZ
Electronics (Kunshan)
Co., Ltd.
LIZ
Electronics (Nantong)
Co., Ltd.
CIC
CPO
CIT
Main businesses and
products
Manufacturing and
sales of monitors
Manufacturing and
sales of notebook PCs,
mobile phones, and
Digital products
Manufacturing of
notebook PCs
Manufacturing of
notebook PCs
Research &
development, and
manufacturing latest
electronic components,
precision cavity mold,
design and
manufacturing for
standard parts for
molds, and selling self
-produced products
Maintenance and
warranty service of
notebook PCs
Production and
processing
chipresistors, ceramic
capacitors, diodes, and
other latest electronic
components and
related precision
electronic equipment;
selling self-produced
products
Research &
development, and
manufacturing chip
components( chip
resistors, ceramic chip
diode； selling self-
produced products and
providing after-sales
service. Performing
wholesale and trading
business of electronic
components,
semiconductors,
special materials for
electronic components,
and spare parts
Research, manufacture
and sales of
communication
devices, mobile
phones, electronic
computer, smart watch,
and provide related
technology service
Manufacturing of
notebook PCs
Manufacturing and
sales of LCD TVs
Manufacturing of
notebook PCs
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
123
Table 10 Information on investment in Mainland China:
(December 31, 2020)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2020
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2020
Investment flows
Outflow Inflow
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
39,872
-
39,872
3,123
100%
3,123
Accumulated
remittance of
earnings in
current
period
-
Book value
48,065
Total amount of
paid-in capital
39,872
Method of
investment
(Note 2)
284,800
(Note 2)
145,248
-
444,288
(Note 2)
444,288
427,200
(Note 2)
(Note 3)
2,301,754
(Note 1)
2,301,754
2,278,400
(Note 2)
(Note 3)
-
-
-
-
145,248
(2,107)
51%
(1,517)
29,890
-
444,288
(220,802)
100%
(220,802)
578,414
-
(222,067)
100%
(222,067)
545,268
2,301,754
396,577
100%
396,577
4,045,228
-
396,303
100%
396,303
4,016,319
-
-
-
-
-
-
-
-
-
-
22,784
(Note 2)
(Note 3)
-
-
-
211
100%
211
22,844
-
284,800
(Note 1)
284,800
-
-
284,800
216,453
100%
216,453
2,417,295
-
11,961,600
(Note 2)
2,353,217
-
1,708,800
(Note 2)
326,267
-
512,640
(Note 2)
356,000
-
768,960
(Note 1)
626,560
165,184
(Note 1)
165,184
1,395,520
(Note 1)
541,120
-
-
-
-
-
-
-
-
-
2,353,217
356,025
37%
138,213
5,905,294
326,267
(227,797)
37%
(83,419)
810,695
356,000
101,565
100%
101,565
272,548
626,560
(59,301)
100%
(59,301)
(935,877)
165,184
1,774
100%
1,774
86,422
541,120
219,725
100%
219,725
460,044
-
-
-
-
-
-
(Continued)
Name of
investee
CST
Sheng Bao Precision
Electronics (Taicang)
Co., Ltd.
CIJ
CDE
CIS
CEC
CMC
CEQ
CPM
Changbao
Main businesses and
products
International trade and
distribution of
computers and
electronic components
Research &
development, and
manufacturing latest
electronic components,
precision cavity mold,
design and
manufacturing for
standard parts for
molds, and selling self-
produced products
Investment and
consulting services
Manufacturing and
sales of LCD TVs
Outward investment
and consulting services
R&D and
manufacturing of
notebook PCs, tablet
PCs, digital products,
network switches,
wireless AP, and
automobile electronic
products
Corporate management
consulting, financial
and tax consulting,
investment consulting,
and investment
management
consulting services
R&D, manufacturing
and sales of notebook
PCs and related
components. Also
provides related
maintenance and
warranty services
Manufacturing and
selling of magnesium
alloy injection molding
Production and
marketing of
magnesium alloy
molding
Rayonnant (Taicang) Manufacturing and
sales of aluminum
alloy and magnesium
alloy products
CCI Nanjing
CDCN
CWCN
Manufacturing and
processing of mobile
phones and tablet PCs
Manufacturing and
processing of mobile
phones and tablet PCs
Manufacturing and
processing of mobile
phones and tablet PCs
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
124
Table 10 Information on investment in Mainland China:
(December 31, 2020)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2020
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2020
Investment flows
Outflow Inflow
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
Book value
56,960
-
-
56,960
(172)
100%
(172)
2,856
Accumulated
remittance of
earnings in
current
period
-
Total amount of
paid-in capital
56,960
Method of
investment
(Note 1)
373,088
(Note 1)
354,576
(Note 1)
95,408
(Note 1、
10)
524,602
(Note 7)
313,593
(Note 8)
32,752
-
-
-
1,139,200
(Note 1)
1,133,589
-
-
-
-
-
-
524,602
35,282
100%
35,282
164,728
313,593
62,526
100%
62,526
886,668
32,752
(59,068)
100%
(59,068)
19,423
-
-
-
1,133,589
(165,830)
100%
(165,830)
(311,685)
-
427,200
(Note 2)
185,092
-
-
185,092
2,276
100%
2,276
128,188
-
(Note 12)
Name of
investee
Hanhelt
Arcadyan
SVA Arcadyan
CNC
THAC
HengHao
HengHao
Optoelectronic
Technology (Kunshan)
Co., Ltd.
(“HengHao Kunshan”)
Main businesses and
products
R&D and
manufacturing of
electronic
communication
equipment
R&D and sales of
wireless network
products
Manufacturing and
wireless network
products
Manufacturing of
household electronics
products
Production of touch
panels and related
components
Lucom Display
Technology (Kunshan)
Limited(“Lucom”)
Manufacturing of
notebook PCs and
related modules
(ii) Limitation on investment in Mainland China:
Names of
Company
The Company
Arcadyan
HengHao
Accumulated Investment in Mainland China
as of December 31, 2020
Investment Amounts Authorized by
Investment Commission of Ministry of
Economic Affairs
Limitation on investment in Mainland China by
Investment Commission of Ministry of Economic
Affairs
(In Thousands of USD)
15,451,454 (US$542,537)
(Note 5)
870,947 (US$30,581)
1,334,915 (US$46,872)
21,549,449 (US$756,652)
870,947 (US$30,581)
1,334,915 (US$46,872)
(Note 6)
6,965,617
(Note 13)
Note 1: Indirectly investment in Mainland China through companies registered in the third region.
Note 2: Indirectly investment in Mainland China through an existing company registered in the third region.
Note 3: Investees held by Kunshan Botai Electronics Co., Ltd. (“BT”), Compal Investment (Jiansu) Co., Ltd. (“CIJ”), Compal Electronic (Sichuan)
Co., Ltd. (“CIS”), and Compal Electronics (China) Co., Ltd. (“CPC”) through their own funds.
Note 4: The investment income (loss) was determined based on the financial report audited by the CPAs.
Note 5: Including the investment amount of sold or dissolved companies, including Beijing Compower Xuntong Electronic Technology Co., Ltd., VAP
Optoelectronics (NanJing) Corp., Flextronics Technology (Shanghai) Ltd., Lucom, LCFC (HeFei) Electronics Technology Co., Ltd. and the increased
investment amount form merging with Compal Communication Co., Ltd.
Note 6: As the Company has obtained the certificate of being qualified for operating headquarters, issued by Industrial Development Bureau, MOEA,
the upper limit on investment in mainland China is not applicable.
Note 7: Arcadyan paid US$18,420 thousands and acquired 100% shares of SVA Arcadyan from Accton Asia through Arcadyan Holding in 2010.
Note 8: Arcadyan paid US$8,561 thousands and acquired 100% shares of CNC from Just through Arcadyan Holding in 2007.
Note 9: SVA Arcadyan decreased its capital amounting to US$15,000 thousands to offset accumulated losses in March 2009.
Note 10: Arcadyan’s subsidiary, TTI, obtained the control over THAC with US$1,150 thousands on February 28, 2013 (the date of stock transferring).
Note 11: The amounts in New Taiwan Dollars were translated at the exchange rates at the balance sheet date or the average exchange rate.
Note 12: The Company had an accumulated investment amounting to US$7,350 thousands in the previous years. In the first half of 2014, HengHao
paid the Company and LG US$3,184 thousands and US$3,315 thousands, respectively, for organization restructure, to obtain 100%
ownership of Lucom.
Note 13: The net equity of HengHao is negative at December 31, 2020.
(iii) Significant transactions:
For the year ended December 31, 2020, the significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of
consolidated financial statements, are disclosed in “Information on significant transactions” and “Business relationships and significant intercompany transactions”.
Attachment II
1
Stock Code:2324
COMPAL ELECTRONICS, INC.
Parent Company Only Financial Statements
With Independent Auditors’ Report
For the Years Ended December 31, 2020 and 2019
Address:
Telephone: (02)8797-8588
No.581 & 581-1, Ruiguang Rd., Neihu District, Taipei, Taiwan
Table of contents
2
Contents
Page
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Report
4. Balance Sheets
5. Statements of Comprehensive Income
6. Statements of Changes in Equity
7. Statements of Cash Flows
8. Notes to the Financial Statements
(1) Company history
(2) Approval date and procedures of the financial statements
(3) New standards, amendments and interpretations adopted
(4) Summary of significant accounting policies
(5) Significant accounting assumptions and judgments, and major sources of
estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8) Pledged assets
(9) Commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent Events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information
9. List of major accounting items
1
2
3
4
5
6
7
8
8
8～9
9～30
30～31
31～66
66～73
73
73
73
73
74～75
75, 86~97
75, 98~103
75, 104~106
75
75
76～85
3
Independent Auditor’s Report
To COMPAL ELECTRONICS, INC.:
Opinion
We have audited the financial statements of COMPAL ELECTRONICS, INC. (the “Company”), which
comprise the balance sheets as of December 31, 2020 and 2019, the statement of comprehensive income,
changes in equity and cash flows for the years ended December 31, 2020 and 2019, and notes to the financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as of December 31, 2020 and 2019, and its financial performance and its cash flows for
the years then ended December 31, 2020 and 2019, in accordance with the Regulations Governing the
Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audit of the financial statements as of and for the year ended December 31, 2020 in
accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified
Public Accountants, and the auditing standards generally accepted in the Republic of China. Furthermore, we
conducted our audit of the financial statements as of and for the year ended December 31, 2019 in accordance
with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public
Accountants, Rule No. 1090360805 issued by the Financial Supervisory Commission, and the auditing standards
generally accepted in the Republic of China. Our responsibilities under those standards are further described in
the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Certified Public Accountants Code of Professional Ethics in
Republic of China (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the
Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
1. Account receivable valuation
Please refer to Note (4)(f) for the accounting policy of accounts receivable. Information of account receivable
valuation are shown in Note (6)(d) of the financial statements.
3-1
Description of key audit matters:
The Company is subject to great influence of given the challenging industry climate and also devotes to
develop new product lines and new customers, and the credit risks of these customers are higher than other
world leading enterprises. Therefore, valuation of accounts receivable has been identified as a key audit
matter.
Our key audit procedures performed in respect of the above area included the following:
In order to evaluate the reasonableness of the Company's estimations for bad debts, our key audit procedures
included reviewing if the measurement of impairment loss of accounts receivable is accordance with
accounting policy, examining the historical recovery records, analyzing the aging of accounts receivable, and
the current credit status of customers, as well as inspecting the amount collected in the subsequent period.
2. Inventory valuation
Please refer to Note (4)(g) and Note (5) for the accounting policy of inventory valuation, as well as the
estimation and assumption uncertainty of the valuation of inventory, respectively. Information of estimation
of the valuation of inventory are disclosed in Note (6)(f) of the financial statements.
Description of key audit matters:
The inventory is measured at the lower of cost or net realizable value. The short life cycle of electronic
products may cause significant changes in customers’ demand and sales of related products. Consequently,
the book value of inventory may be lower than the net realizable value of inventory. Therefore, the valuation
of inventory is one of the key audit matters.
Our key audit procedures performed in respect of the above area included the following:
In order to verify the rationality of assessment of inventory valuation estimated by the Company, our key
audit procedures included reviewing the consistency of prior year and accounting policy, inspecting the
Company's inventory aging reports, analyzing the change of inventory aging, as well as verifying the
inventory aging reports and the calculation of lower of cost or net realizable value.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance (including members of the Audit Committee) are responsible for overseeing the
Company’s financial reporting process.
3-2
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the auditing standards generally accepted in the Republic of China will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we
exercise professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than the one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
6. Obtain sufficient appropriate audit evidence regarding the financial information of the investment in other
entities accounted for using the equity method to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the audit. We remain solely responsible for our
audit opinion
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
3-3
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors’ report are Szu-Chuan Chien and
Yiu-Kwan Au.
KPMG
Taipei, Taiwan (Republic of China)
March 26, 2021
The accompanying parent company only financial statements are intended only to present the financial position, financial performance
and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of
any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those
generally accepted and applied in the Republic of China.
Notes to Readers
COMPAL ELECTRONICS, INC.
Balance Sheets
December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars)
Assets
Current assets:
December 31, 2020
Amount
%
December 31, 2019
Amount
%
Cash and cash equivalents (note (6)(a))
$
7,666,366
2.0
13,459,969
4.0
Current financial assets at fair value through profit or loss (note (6)(b))
Notes and accounts receivable, net (note (6)(d))
Notes and accounts receivable due from related parties, net (notes (6)(d) and 7)
Other receivables, net (notes (6)(e) and 7)
Inventories (note (6)(f))
Other current assets
Non-current assets:
Investments accounted for using equity method (note (6)(g))
Non-current financial assets at fair value through profit or loss (note (6)(b))
Non-current financial assets at fair value through other comprehensive income (note (6)(c))
Property, plant and equipment (note (6)(i))
Right-of-use assets (note (6)(j))
Intangible assets
Deferred tax assets (note (6)(o))
Other non-current assets
-
-
149,888
-
218,292,177
56.1
176,967,731
52.4
11,127,880
2,846,497
2.9
0.7
1,052,131
3,110,607
0.3
0.9
55,792,348
14.3
50,048,069
14.9
657,805
0.2
734,434
0.2
296,383,073
76.2
245,522,829
72.7
83,957,849
21.6
83,430,169
24.7
158,769
-
71,097
-
2,881,121
2,604,893
1,290,125
436,548
1,102,654
0.8
0.7
0.3
0.1
0.3
3,019,393
2,620,638
1,387,615
438,334
1,166,808
0.9
0.8
0.4
0.1
0.4
136,119
-
126,605
-
92,568,078
23.8
92,260,659
27.3
1100
1110
1170
1180
1200
1310
1470
1550
1510
1517
1600
1755
1780
1840
1990
2100
2130
2170
2180
2200
2230
2280
2300
2365
2322
2540
2570
2580
2640
2670
3110
3200
3300
3400
3500
Liabilities and Equity
Current liabilities:
Short-term borrowings (note (6)(k))
Current contract liabilities (note (6)(r))
Notes and accounts payable
Notes and accounts payable to related parties (note 7)
Other payables (note 7)
Current tax liabilities
Current lease liabilities (note (6)(m))
Other current liabilities
Current refund liabilities
Long-term borrowings, current portion (note (6)(l))
Non-Current liabilities:
Long-term borrowings (note (6)(l))
Deferred tax liabilities (note (6)(o))
Non-current lease liabilities (note (6)(m))
Non-current net defined benefit liability (note (6)(n))
Non-current liabilities, others (note (6)(g))
Total liabilities
Equity (note (6)(p)):
Ordinary share
Capital surplus
Retained earnings
Other equity interest
Treasury shares
Total equity
4
December 31, 2020
Amount
%
December 31, 2019
Amount
%
$
55,991,680
828,978
100,825,221
87,802,452
9,229,539
2,786,226
202,113
690,513
1,253,890
8,855,440
14.4
0.2
25.9
22.6
2.4
0.7
-
0.2
0.3
2.3
39,363,800
877,822
74,138,921
74,925,238
9,390,399
2,107,283
387,499
348,480
1,182,501
18,150,000
11.7
0.3
21.9
22.2
2.8
0.6
0.1
0.1
0.4
5.3
268,466,052
69.0
220,871,943
65.4
10,250,000
829,757
1,096,415
687,054
789,368
13,652,594
2.6
0.2
0.3
0.2
0.2
3.5
7,500,000
893,232
1,010,933
643,253
891,494
10,938,912
2.2
0.3
0.3
0.2
0.2
3.2
282,118,646
72.5
231,810,855
68.6
44,071,466
8,342,813
62,566,181
(7,266,708)
(881,247)
106,832,505
11.3
2.1
16.1
(1.8)
(0.2)
27.5
44,071,466
9,159,259
57,726,604
(4,103,449)
(881,247)
105,972,633
13.1
2.7
17.1
(1.2)
(0.3)
31.4
Total assets
$
388,951,151
100.0
337,783,488
100.0
Total liabilities and equity
$
388,951,151
100.0
337,783,488
100.0
See accompanying notes to financial statements.
COMPAL ELECTRONICS, INC.
Statements of Comprehensive Income
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)
5
2020
2019
Net sales revenue (notes (6)(r) and 7)
Cost of sales (notes (6)(f), (6)(n), 7 and 12)
Gross profit
Less: Unrealized profit (loss) from sales
Gross profit
Operating expenses: (notes (6)(n) and 12)
Selling expenses
Administrative expenses
Research and development expenses
Net operating income
Non-operating income and expenses:
Interest income (note (6)(t))
Other gains and losses, net (note (6)(t))
Finance costs (note (6)(m))
Other income (note (6)(t))
Share of profit of associates and joint ventures accounted for using equity method (note (6)(g))
Total non-operating income and expenses
Profit from continuing operations before tax
Less: Income tax expenses (note (6)(o))
Profit
Other comprehensive income:
Components of other comprehensive income (loss) that will not be reclassified to profit or
loss
Gains (losses) on remeasurements of defined benefit plans
Unrealized gains (losses) from investments in equity instruments measured at fair value
through other comprehensive income
Share of other comprehensive income of subsidiaries, associates and joint ventures accounted
for using equity method, components of other comprehensive income that will not be
reclassified to profit or loss
Income tax related to components of other comprehensive income that will not be reclassified
to profit or loss
Components of other comprehensive income that will not be reclassified to profit or loss
(note (6)(o))
Components of other comprehensive income (loss) that will be reclassified to profit or loss
Exchange differences on translation of foreign financial statements
Share of other comprehensive income of subsidiaries, associates and joint ventures accounted
for using equity method, components of other comprehensive income that will be
reclassified to profit or loss
Income tax related to components of other comprehensive income that will be reclassified to
profit or loss
Components of other comprehensive income that will be reclassified to profit or loss
Other comprehensive income
Total comprehensive income
Earnings per share (note 6(q))
Basic earnings per share
Diluted earnings per share
%
%
Amount
Amount
$ 991,279,270 100.0 916,280,028 100.0
968,054,585 97.7 891,431,772 97.3
2.7
-
2.7
23,224,685
6,641
23,218,044
24,848,256
(893)
24,849,149
2.3
-
2.3
3,705,829
2,262,855
11,169,634
17,138,318
6,079,726
0.4
0.2
1.1
1.7
0.6
3,532,483
2,318,452
10,461,262
16,312,197
8,536,952
0.4
0.3
1.1
1.8
0.9
126,882
599,312
(704,218)
358,670
3,966,905
4,347,551
10,427,277
-
0.1
(0.1)
-
0.4
0.4
1.0
184,607
(420,923)
(1,969,101)
469,232
1,022,912
(713,273)
7,823,679
-
-
(0.2)
0.1
0.1
-
0.9
1,065,384
0.1
867,780
0.1
9,361,893
0.9
6,955,899
0.8
(57,224)
(116,466)
(14,409)
(2,818)
(185,281)
-
-
-
-
-
(32,645)
120,897
359,147
3,056
444,343
-
-
-
-
-
(3,073,441)
(0.3)
(1,620,812) (0.2)
(19,629)
-
-
-
(322,922)
-
-
-
(3,093,070)
(0.3)
(1,943,734) (0.2)
(3,278,351)
6,083,542
(0.3)
0.6
$
(1,499,391) (0.2)
0.6
5,456,508
$
$
2.15
2.12
1.60
1.58
4000
5000
5910
6100
6200
6300
7100
7020
7050
7190
7370
7900
7950
8300
8310
8311
8316
8330
8349
8360
8361
8380
8399
8300
8500
9750
9850
See accompanying notes to financial statements.
COMPAL ELECTRONICS, INC.
Statements of Changes in Equity
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars)
Retained earnings
Total other equity interest
Unrealized
6
Special
reserve
Unappropriated
retained
earnings
gains
(losses) on
financial assets
measured at
fair value
through other
comprehensive
income
(5,606,436)
Exchange
differences on
translation of
foreign
financial
statements
(1,852,952)
-
(1,942,028)
(1,942,028)
-
474,763
474,763
-
-
-
-
-
-
-
-
(3,794,980)
-
(3,093,997)
(3,093,997)
-
-
-
-
-
-
-
-
-
(6,888,977)
-
-
-
-
-
-
-
4,824,910
(306,763)
-
(137,062)
(137,062)
-
-
-
-
-
-
33,051
8,978
24,844
(376,952)
Total
retained
earnings
60,060,381
6,955,899
(30,420)
6,925,479
-
-
(4,407,147)
-
-
32,401,419
6,955,899
(30,420)
6,925,479
(891,336)
1,363,317
(4,407,147)
-
-
(27,199)
-
(27,199)
-
(4,824,910)
30,539,623
9,361,893
(48,219)
9,313,674
(4,824,910)
57,726,604
9,361,893
(48,219)
9,313,674
(695,590)
3,366,088
(4,407,147)
-
(33,051)
(9,055)
-
-
-
-
(4,407,147)
-
(33,051)
(9,055)
-
-
(24,844)
38,049,698
(24,844)
62,566,181
Total other
equity
interest
(7,459,388)
-
Others
-
-
(1,706)
(1,706)
(1,468,971)
(1,468,971)
Treasury
shares
Total equity
(881,247) 105,723,646
6,955,899
(1,499,391)
5,456,508
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,706)
4,824,910
(4,103,449)
-
927
927
(3,230,132)
(3,230,132)
-
-
-
-
-
-
33,051
8,978
(779)
24,844
(7,266,708)
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
43,473
(22,439)
60,021
-
(881,247) 105,972,633
9,361,893
(3,278,351)
6,083,542
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
1,735
2,151
60,021
999
-
(881,247) 106,832,505
Balance at January 1, 2019
Profit for the year ended December 31, 2019
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Special reserve appropriated
Cash dividends of ordinary share
Cash dividends from capital surplus
Changes in ownership interests in subsidiaries
Changes in equity of associates and joint ventures accounted for using equity
method
Adjustments of capital surplus for cash dividends received by subsidiaries
Disposal of investments in equity instruments measured at fair value through
other comprehensive income
Balance at December 31, 2019
Profit for the year ended December 31, 2020
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Special reserve appropriated
Cash dividends of ordinary share
Cash dividends from capital surplus
Changes in ownership interests in subsidiaries
Changes in equity of associates and joint ventures accounted for using equity
method
Adjustments of capital surplus for cash dividends received by subsidiaries
Others
Disposal of investments in equity instruments measured at fair value through
Ordinary
shares
$ 44,071,466
-
-
-
-
-
-
-
-
-
-
-
Capital
surplus
9,932,434
Legal
reserve
18,827,814
-
-
-
-
-
-
(881,429)
43,473
4,760
60,021
-
-
-
-
891,336
-
-
-
-
-
-
-
8,831,148
-
-
-
-
(1,363,317)
-
-
-
-
-
-
44,071,466
9,159,259
19,719,150
7,467,831
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(881,429)
1,735
2,228
60,021
999
-
-
-
-
695,590
-
-
-
-
-
-
-
-
-
-
-
-
(3,366,088)
-
-
-
-
-
-
-
8,342,813
20,414,740
4,101,743
other comprehensive income
Balance at December 31, 2020
-
$ 44,071,466
See accompanying notes to financial statements.
COMPAL ELECTRONICS, INC.
Statements of Cash Flows
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars)
Cash flows from (used in) operating activities:
Profit before tax
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation and amortization
Increase in expected credit loss
Net gain on financial assets or liabilities at fair value through profit or loss
Finance cost
Interest income
Dividend income
Share of profit of subsidiaries, associates and joint ventures accounted for using equity method
Gain on disposal of investments
Others
Total adjustments to reconcile profit (loss)
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in financial assets at fair value through profit or loss
Decrease (increase) in notes and accounts receivable
Decrease (increase) in other receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Total changes in operating assets
Changes in operating liabilities:
Increase (decrease) in notes and accounts payable
Increase (decrease) in other payables
Increase (decrease) in refund liabilities
Increase (decrease) in contract liabilities
Increase (decrease) in other current liabilities
Others
Total changes in operating liabilities
Total changes in operating assets and liabilities
Total adjustments
Cash inflow (outflow) generated from operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash flows from (used in) operating activities
Cash flows from (used in) investing activities:
Redemption from financial assets at amortized cost
Acquisition of financial assets at fair value through profit or loss and through other comprehensive income
Proceeds from disposal of financial assets at fair value through profit or loss and through other comprehensive income
Acquisition of investments accounted for using equity method
Proceeds from disposal of investments accounted for using equity method
Proceeds from capital reduction of investments
Acquisition of property, plant and equipment
Increase in other receivables due from related parties
Acquisition of intangible assets
Others
Net cash flows from (used in) investing activities
Cash flows from (used in) financing activities:
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
Cash dividends paid
Others
Net cash flows from (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
See accompanying notes to financial statements.
7
2020
2019
$
10,427,277
7,823,679
1,223,436
604
(10,997)
704,218
(126,882)
(56,780)
(3,966,905)
(3,914)
(73)
(2,237,293)
149,888
(51,400,799)
324,137
(5,744,279)
77,370
(56,593,683)
39,563,514
(130,987)
71,389
(48,844)
342,033
(6,783)
39,790,322
(16,803,361)
(19,040,654)
(8,613,377)
128,708
767,756
(733,092)
(382,944)
(8,832,949)
-
(84,253)
25,156
(515,113)
8,306
4,228
(551,684)
161,040
(368,736)
36,751
(1,284,305)
16,627,880
61,349,200
(67,893,760)
(471,093)
(5,288,576)
-
4,323,651
(5,793,603)
13,459,969
7,666,366
1,017,058
1,537
(14,195)
1,969,101
(184,607)
(71,778)
(1,022,912)
(8,990)
(48)
1,685,166
(149,888)
12,793,425
(316,517)
1,469,090
(193,407)
13,602,703
(6,363,500)
1,176,316
(297,945)
(527,630)
(238,828)
(11,365)
(6,262,952)
7,339,751
9,024,917
16,848,596
231,795
536,175
(2,147,529)
(450,537)
15,018,500
350,000
(74,992)
1,152,409
(341,107)
18,034
22,426
(761,929)
(1,587,080)
(384,816)
(6,244)
(1,613,299)
(11,941,882)
66,503,625
(69,249,875)
(414,856)
(5,288,576)
(46)
(20,391,610)
(6,986,409)
20,446,378
13,459,969
$
COMPAL ELECTRONICS, INC.
Notes to the Financial Statements
For the years ended December 31, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
8
(1) Company history
Compal Electronics, Inc. (the “Company”) was incorporated in June 1984 as a company limited by
shares and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company's
registered office is No.581 and No.581-1 Ruiguang Rd., Neihu Dist., Taipei City, Taiwan. In accordance
with Article 19 of the Business Mergers and Acquisitions Act, the Company merged its subsidiary,
Compal Communications, Inc. (“CCI”) (the “Merger”), pursuant to the resolutions of the Board of
Directors in November, 2013. The Company was the surviving company and CCI was the dissolved
company. The effective date of the Merger was February 27, 2014. The Company is primarily involved
in the manufacture and sale of notebook personal computers (“notebook PCs”), monitors, LCD TVs,
mobile phones and various components and peripherals.
(2) Approval date and procedures of the financial statements:
The accompanying parent-company-only financial statements were authorized for issuance by the Board of
Directors and issued on March 26, 2021.
(3) New standards, amendments and interpretations adopted:
(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the
Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.
The Company has initially adopted the following new amendments, which do not have a significant
impact on its financial statements, from January 1, 2020:
● Amendments to IFRS 3 “Definition of a Business”
● Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”
● Amendments to IAS 1 and IAS 8 “Definition of Material”
● Amendments to IFRS 16 “COVID-19-Related Rent Concessions”
(b) The impact of IFRS issued by the FSC but not yet effective
The Company assesses that the adoption of the following new amendments, effective for annual
period beginning on January 1, 2021, would not have a significant impact on its financial statements:
● Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
● Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform
－Phase 2”
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
9
(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC
The following new and amended standards, which may be relevant to the Company, have been
issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the
FSC:
Standards or
Interpretations
Amendments to IAS 1
“Classification of Liabilities as
Current or Non-current”
Effective date per
IASB
January 1, 2023
Content of amendment
The amendments aim to promote consistency
in applying the requirements by helping
companies determine whether,
the
statement of balance sheet, debt and other
liabilities with an uncertain settlement date
should be classified as current (due or
potentially due to be settled within one year)
or non-current.
in
The amendments include clarifying the
classification requirements for debt a
company might settle by converting it into
equity.
The Company is evaluating the impact of its initial adoption of the abovementioned standards or
interpretations on its financial position and financial performance. The results thereof will be
disclosed when the Company completes its evaluation.
The Company does not expect the following other new and amended standards, which have yet to be
endorsed by the FSC, to have a significant impact on its financial statements:
● Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor
and Its Associate or Joint Venture”
● IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
● Amendments to IAS 16 “Property, Plant and Equipment－Proceeds before Intended Use”
● Amendments to IAS 37 “Onerous Contracts－Cost of Fulfilling a Contract”
● Annual Improvements to IFRS Standards 2018-2020
● Amendments to IFRS 3 “Reference to the Conceptual Framework”
● Amendments to IAS 1 “Disclosure of Accounting Policies”
● Amendments to IAS 8 “Definition of Accounting Estimates”
(4) Summary of significant accounting policies:
The significant accounting policies presented in the parent-company-only financial statements are
summarized as follows. The following accounting policies were applied consistently throughout the
periods presented in the parent-company-only financial statements.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
10
(a) Statement of compliance
These parent-company-only financial statements have been prepared in accordance with the
Regulations Governing the Preparation of Financial Reports by Securities Issuers.
(b) Basis of preparation
(i) Basis of measurement
Except for the following significant accounts in the statement of financial position, the
parent-company-only financial statements have been prepared on the historical cost basis:
1)
2)
3)
Financial instruments measured at fair value through profit or loss are measured at fair
value;
Financial instruments measured at fair value through other comprehensive income are
measured at fair value;
The defined benefit liability (or asset) is recognized as plan assets less the present value
of the defined benefit obligation and the effect of the asset ceiling mentioned in note
(4)(q).
(ii) Functional and presentation currency
The functional currency of the Company is determined based on the primary economic
environment in which the Company operates. The parent-company-only financial statements
are presented in New Taiwan Dollar, which is the Company’s functional currency. All
financial information presented in New Taiwan Dollar has been rounded to the nearest
thousand.
(c) Foreign currency
(i)
Foreign currency transaction
Transactions in foreign currencies are translated to the respective functional currencies of the
Company at exchange rates at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are retranslated to the functional
currency at the exchange rate at that date. The foreign currency gain or loss on monetary
items is the difference between the amortized cost in the functional currency at the beginning of
the year adjusted for the effective interest and payments during the period, and the amortized
cost in foreign currency translated at the exchange rate at the reporting date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency at the exchange rate at the date that the fair
value was determined. Non-monetary items in a foreign currency that are measured based on
historical cost are translated using the exchange rate at the date of translation.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
11
Foreign currency differences arising on retranslation are recognized in profit or loss, except for
the following differences which are recognized in other comprehensive income arising on the
retranslation:
1)
2)
fair value through other comprehensive income financial assets;
a financial liability designated as a hedge of the net investment in a foreign operation to
the extent that the hedge is effective; or
3)
qualifying cash flow hedges to the extent the hedge is effective
(ii) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments
arising on acquisition, are translated to the Company’s functional currency at exchange rates of
the reporting date. The income and expenses of foreign operations, excluding foreign
operations in hyperinflationary economies, are translated to the Company’s functional currency
at average rate. Foreign currency differences are recognized in other comprehensive income,
and presented in the foreign currency translation differences in equity.
When a foreign operation is disposed of such that control, significant influence or joint control
is lost, the cumulative amount in the translation reserve related to that foreign operation is
reclassified to profit or loss as part of the gain or loss on disposal. When the Company
disposes of any part of its interest in a subsidiary that includes a foreign operation while
retaining control, the relevant proportion of the cumulative amount is reattributed to
non-controlling interest. When the Company disposes of only part of investment in an
associate of joint venture that includes a foreign operation while retaining significant or joint
control, the relevant proportion of the cumulative amount is reclassified to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign operation is
neither planned nor likely in the foreseeable future, foreign currency gains and losses arising
from such items are considered to form part of a net investment in the foreign operation and are
recognized in other comprehensive income, and presented in the translation reserve in equity.
(d) Classification of current and non-current assets and liabilities
An asset is classified as current under one of the following criteria, and all other assets are classified
as non-current.
(i)
It expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(ii)
It holds the asset primarily for the purpose of trading;
(iii) It expects to realize the asset within twelve months after the reporting period; or
(iv) The asset is cash and cash equivalent unless the asset is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting period.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
12
A liability is classified as current under one of the following criteria, and all other liabilities are
classified as non-current.
(i)
It expects to settle the liability in its normal operating cycle;
(ii)
It holds the liability primarily for the purpose of trading;
(iii) The liability is due to be settled within twelve months after the reporting period; or
(iv) The Company does not have an unconditional right to defer settlement of the liability for at
least twelve months after the reporting period. Terms of a liability that could, at the option of
the counterparty, result in its settlement by the issue of equity instruments do not impact its
classification.
(e) Cash and cash equivalents
Cash comprise cash on hand and demand deposits. Cash equivalents are subject to an insignificant
risk of changes in their fair value, and are used by the Company in the management of its short-term
commitments.
The time deposits which meet the above definition and are held for the purpose of meeting short-term
cash commitments rather than for investment or other purposes are reclassified as cash equivalents.
(f) Financial instruments
(i)
Financial assets
Financial assets are classified into the following categories: measured at amortized cost, fair
value through other comprehensive income (“FVOCI”) and fair value through profit or loss
(“FVTPL”).
The Company shall reclassify all affected financial assets only when it changes its business
model for managing its financial assets.
1)
Financial assets measured at amortized cost
A financial asset is measured at amortized cost if it meets both of the following
conditions and is not designated as at FVTPL:
‧ it is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
‧ its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
13
A financial asset measured at amortized cost is initially recognized at fair value, plus any
directly attributable transaction costs. These assets are subsequently measured at
amortized cost using the effective interest method. The amortized cost is reduced by
impairment losses. Interest income, foreign exchange gains and losses, and impairment
loss, are recognized in profit or loss. Any gain or loss on derecognition is recognized in
profit or loss. A regular way purchase or sale of financial assets is recognized and
derecognized, as applicable, using trade date accounting.
2)
Fair value through other comprehensive income (“FVOCI”)
A debt investment is measured at FVOCI if it meets both of the following conditions and
is not designated as at FVTPL:
‧ it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
‧ its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Some accounts receivables are held within a business model whose objective is achieved
by both collecting contractual cash flows and selling by the Company, therefore, those
receivables are measured at FVOCI and presented as accounts receivable.
On initial recognition of an equity investment that is not held for trading, the Company
may irrevocably elect to present subsequent changes in the investment’s fair value in
other comprehensive income. This election is made on an instrument-by-instrument basis.
A financial asset measured at FVOCI is initially recognized at fair value, plus any
directly attributable transaction costs. These assets are subsequently measured at fair
value. Interest income calculated using the effective interest method, foreign exchange
gains and losses, and impairment losses, deriving from debt investments are recognized
in profit or loss; whereas dividends deriving from equity investments are recognized as
income in profit or loss, unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses of financial assets measured at FVOCI
are recognized in OCI. On derecognition, gains and losses accumulated in OCI of debt
investments are reclassified to profit or loss. However, gains and losses accumulated in
OCI of equity investments are reclassified to retain earnings instead of profit or loss. A
regular way purchase or sale of financial assets is recognized and derecognized, as
applicable, using trade date accounting.
Dividend income derived from equity investments is recognized on the date that the
Company’s right to receive payment is established, which in the case of quoted securities
is normally the date the shareholders' meeting approved the earning distribution.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
14
3)
Fair value through profit or loss (“FVTPL”)
All financial assets not classified as amortized cost or FVOCI described as above are
measured at FVTPL, including derivative financial assets. On initial recognition, the
Company may irrevocably designate a financial asset, which meets the requirements to be
measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
Financial assets in this category are measured at fair value at initial recognition.
Attributable transaction costs are recognized in profit or loss as incurred. Subsequent
changes that are measured at fair value, which take into account any dividend and interest
income, are recognized in profit or loss. A regular way purchase or sale of financial assets
is recognized and derecognized, as applicable, using trade date accounting.
4)
Impairment of financial assets
The Company recognizes loss allowances for expected credit losses on financial assets
measured at amortized cost (including cash and cash equivalents, financial assets
measured at amortized costs, notes and accounts receivable, other receivable, guarantee
deposit and other financial assets), debt investments measured at FVOCI, and accounts
receivable measured at FVOCI.
The Company measures loss allowances at an amount equal to lifetime expected credit
loss (“ECL”), except for the following which are measured as 12-month ECL:
‧ debt securities that are determined to have low credit risk at the reporting date; and
‧ other debt securities and bank balances for which credit risk (i.e. the risk of default
occurring over the expected life of the financial instrument) has not increased
significantly since initial recognition.
Loss allowance for trade receivables and contract assets are always measured at an
amount equal to lifetime ECL.
Lifetime ECLs are the ECLs that result from all possible default events over the expected
life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 month after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual
period over which the Company is exposed to credit risk.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
15
When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECL, the Company considers reasonable
and supportable information that is relevant and available without undue cost or effort.
This includes both quantitative and qualitative information and analysis based on the
Company’s historical experience and
informed credit assessment as well as
forward-looking information.
The Company considers a debt security to have low credit risk when its credit risk rating
is equivalent to the globally understood definition of “investment grade which is
considered to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or
twA or higher per Taiwan Ratings”.
The Company assumes that the credit risk on a financial asset has increased significantly
if it is more than 30 days past due.
The Company considers a financial asset to be in default when the financial asset is more
than 90 days past due or the borrower is unlikely to pay its credit obligations to the
Company in full.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. the difference between the cash flows due to
the Company in accordance with the contract and the cash flows that the Company
expects to receive). ECLs are discounted at the effective interest rate of the financial
asset.
At each reporting date, the Company assesses whether financial assets carried at
amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is
‘credit-impaired’ when one or more events that have a detrimental impact on the
estimated future cash flows of the financial asset have occurred. An evidence that a
financial asset is credit-impaired includes the following observable data:
‧ significant financial difficulty of the borrower or issuer;
‧ a breach of contract such as a default or being more than 90 days past due;
‧ the lender of the borrower, for economic or contractual reasons relating to the
borrower's financial difficulty, having granted to the borrower a concession that the
lender would not otherwise consider;
‧ it is probable that the borrower will enter bankruptcy or other financial reorganization;
or
‧ the disappearance of an active market for a security because of financial difficulties.
Loss allowances for financial assets measured at amortized cost are deducted from the
gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is
recognized in other comprehensive income instead of reducing the carrying amount of the
asset. The Company recognizes the amount of expected credit losses (or reversal) in
profit or loss, as an impairment gain or loss.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
16
The gross carrying amount of a financial asset is written off (either partially or in full) to
the extent that there is no realistic prospect of recovery. This is generally the case when
the Company determines that the debtor does not have assets or sources of income that
could generate sufficient cash flows to repay the amounts subject to the write-off.
However, financial assets that are written off could still be subject to enforcement
activities in order to comply with the Company’s procedures for recovery of amounts
due.
5) Derecognition of financial assets
Financial assets are derecognized when the contractual rights to the cash flows from the
assets expire, or when the Company transfers substantially all the risks and rewards of
ownership of the financial assets.
On derecognition of a debt instrument in its entirety, the Company recognizes the
difference between its carrying amount and the sum of the consideration received or
receivable and any cumulative gain or loss that had been recognized in other
comprehensive income and presented in “other equity – unrealized gains or losses on fair
value through other comprehensive income”, in profit or loss, and presented it in the line
item of non-operating income.
On derecognition of a financial asset other than in its entirety, the Company allocates the
previous carrying amount of the financial asset between the part it continues to recognize
under continuing involvement, and the part it no longer recognizes on the basis of the
relative fair values of those parts on the date of the transfer. The difference between the
carrying amount allocated to the part that is no longer recognized and the sum of the
consideration received for the part no longer recognized and any cumulative gain or loss
allocated to it that had been recognized in other comprehensive income is recognized in
profit or loss, and presented in the line item of non-operating income and expenses. A
cumulative gain or loss that had been recognized in other comprehensive income is
allocated between the part that continues to be recognized and the part that is no longer
recognized on the basis of the relative fair values of those parts.
(ii) Financial liabilities and equity instruments
1) Classification of debt or equity
Debt or equity instruments issued by the Company are classified as financial liabilities or
equity in accordance with the substance of the contractual agreement.
Equity instruments refer to surplus equities of the assets after the deduction of all the
debts for any contracts. Equity instruments issued are recognized as the amount of
consideration received, less, the direct cost of issuing.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
17
Interest and loss or gain related to financial liabilities are recognized as profit or loss and
are reported under non-operating income and expenses. Financial liabilities are
reclassified as equity when converted, and conversions do not generate profit or loss.
2)
Financial liabilities at fair value through profit or loss
A financial liability is classified in this category if acquired principally for the purpose of
selling in the short term. This type of financial liability is measured at fair value at the
time of initial recognition, and attributable transaction costs are recognized in profit or
loss as incurred. Financial liabilities at fair value through profit or loss are measured at
fair value, and changes therein, which take into account any interest expense, are
recognized in profit or loss, and are included in non-operating income or expenses.
3) Other financial liabilities
Financial liabilities not classified as held-for-trading or designated as at fair value
through profit or loss, which comprise loans and borrowings, notes and accounts payable
and other payable, are measured at fair value, plus, any directly attributable transaction
cost at the time of initial recognition. Subsequent to initial recognition, they are measured
at amortized cost calculated using the effective interest method other than significant
interest on short-term loans and payables. Interest expense not capitalized as capital cost
is recognized in profit or loss, and is included in non-operating income or expenses.
4) Derecognition of financial liabilities
The Company derecognizes a financial liability when its contractual obligation has been
discharged, cancelled or expired. The difference between the carrying amount of a
financial liability removed and the consideration paid (including any non-cash assets
transferred or liabilities assumed) is recognized in profit or loss, and is included in
non-operating income or expenses.
5) Offsetting of financial assets and liabilities
The Company presents financial assets and liabilities on a net basis when the Company
has the legally enforceable right to offset and intends to settle such financial assets and
liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.
(iii) Derivative financial instruments
The Company holds derivative financial instruments to hedge its foreign currency and interest
rate exposures. Derivatives are initially measured at fair value. Any attributable transaction
costs thereof are recognized in profit or loss as incurred. Subsequent to initial recognition,
derivatives are measured at fair value, and changes therein are recognized in profit or loss and
are included in the line item of non-operating income. When a derivative is designated as, and
effective for, a hedging instrument, its timing of recognition in profit or loss is determined
based on the nature of the hedging relationship. When the fair value of a derivative instrument
is positive, it is classified as a financial asset, whereas when the fair value is negative, it is
classified as a financial liability.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
18
Embedded derivatives are separated from the host contract and accounted for separately if the
economic characteristics and risks of the non-financial asset’s host contract are not closely
related to the embedded derivatives and the host contract is not measured at FVTPL.
(g)
Inventories
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is
based on the weighted-average-cost principle and includes expenditure incurred in acquiring the
inventories, production or transition costs, and other costs incurred in bringing them to their existing
location and condition. In the case of manufactured inventories and work in progress, cost includes
an appropriate share of production overheads based on normal operating capacity.
Net realizable value is the estimated selling price in the ordinary course of business, less, the
estimated costs of completion and selling expenses.
(h)
Investment in associates
Associates are those entities in which the Company has significant influence, but not control or join
control, over their financial and operating policies.
Investments in associates are accounted for using the equity method and are recognized initially at
cost. The cost of the investment includes transaction costs. The carrying amount of the investment in
associates includes goodwill arising from the acquisition, less, any accumulated impairment losses.
The parent-company-only financial statements include the Company’s share of the profit or loss and
other comprehensive income of equity-accounted investees after adjustments to align the accounting
policies with those of the Company from the date that significant influence commences until the date
that significant influence ceases. When changes in an associate’s equity are not recognized in profit
or loss or other comprehensive income of the associate and such changes do not affect the
Company’s ownership percentage of the associate, the Company recognizes the changes in
ownership interests of its associate in capital surplus in proportion to its ownership.
Unrealized profits resulting from the transactions between the Company and an associate are
eliminated to the extent of the Company’s interest in the associate. Unrealized losses on transactions
with associates are eliminated in the same way, except to the extent that the underlying asset is
impaired.
When the Company’s share of losses exceeds its interest in associates, the carrying amount of the
investment, including any long-term interests that form part thereof, is reduced to zero, and the
recognition of further losses is discontinued except to the extent that the Company has an obligation
or has made payments on behalf of the investee.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
19
The Company shall discontinue the use of the equity method from the date when its investment
ceases to be an associate or a joint venture. The Company shall measure the retained interest at fair
value. The difference between the fair value of retained interest and proceeds from disposal, and the
carrying amount of the investment at the date the equity method was discontinued is recognized in
profit or loss. The Company shall account for all the amounts previously recognized in other
comprehensive income in relation to that investment on the same basis as would have been required
if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously
recognized in other comprehensive income would be reclassified to profit or loss on the disposal of
the related assets or liabilities, the entity shall reclassify the gain or loss from equity to profit or loss
(as a reclassification adjustment) when the equity method is discontinued. If an entity’s ownership
interest in an associate or a joint venture is reduced while the entity continues to apply the equity
method, the entity shall reclassify the proportion of the gain or loss that had previously been
recognized in other comprehensive income relating to that reduction in ownership interest to profit or
loss.
If an investment in an associate becomes an investment in a joint venture or an investment in a joint
venture becomes an investment in an associate, the Company shall continue to apply the equity
method without remeasuring the retained interest.
When the Company subscribes to additional shares in an associate at a percentage different from its
existing ownership percentage, the resulting carrying amount of the investment differs from the
amount of the Company’s proportionate interest in the net assets of the associate. The Company
records such a difference as an adjustment to investments with the corresponding amount charged or
credited to capital surplus, however, when the balance of the capital surplus arising from the
investment was insufficient, the difference charged or credited to retained earnings. If the Company’s
ownership interest is reduced due to the additional subscription to the shares of associate by other
investors, the proportionate amount of the gains or losses previously recognized in other
comprehensive income in relation to that associate shall be reclassified to profit or loss on the same
basis as would be required if the associate had directly disposed of the related assets or liabilities.
(i)
Investment in subsidiaries
When preparing the parent-company-only financial statements, investment in subsidiaries which are
controlled by the Company is accounted for using the equity method. Under the equity method, the
amounts of net income, other comprehensive income and equity attributable to shareholders of the
Company in the parent-company-only financial statement are equal to those in the consolidated
financial statements.
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
20
(j)
Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses. Cost includes expenditure that is directly attributed to the
acquisition of the asset. The cost of the software is capitalized as part of the property, plant and
equipment if the purchase of the software is necessary for the property, plant and equipment to
be capable of operating.
Each part of an item of property, plant and equipment with a cost that is significant in relation
to the total cost of the item shall be depreciated separately, unless the useful life and the
depreciation method of a significant part of an item of property, plant and equipment are the
same as the useful life and depreciation method of another significant part of that same item.
The gain or loss arising from the derecognition of an item of property, plant and equipment
shall be determined as the difference between the net disposal proceeds, if any, and the carrying
amount of the item, and it shall be recognized as other gains and losses.
(ii) Subsequent cost
Subsequent expenditure is capitalized only when it is probable that the future economic
benefits associated with the expenditure will flow to the Company. The carrying amount of
those parts that are replaced is derecognized. Ongoing repairs and maintenance are expensed as
incurred.
(iii) Depreciation
The depreciable amount of an asset is determined after deducting its residual amount, and it
shall be allocated on a systematic basis over its useful life. Items of property, plant and
equipment with the same useful life may be grouped in determining the depreciation charge.
The remainder of the items may be depreciated separately. The depreciation charge for each
period shall be recognized in profit or loss.
The depreciable amount of a leased asset is allocated to each accounting period during the
period of expected use on a systematic basis consistent with the depreciation policy the lessee
adopts for depreciable assets that are owned. If there is reasonably certainty that the lessee will
obtain ownership by the end of the lease term, the period of expected use is the useful life of
the asset; otherwise, the asset is depreciated over the shorter of the lease term and its useful life.
Land has an unlimited useful life and therefore is not depreciated.
The estimated useful lives for the current and comparative years of significant items of
property, plant and equipment are as follows:
1) Buildings: 35~50 years
2) Building improvement: 8~15 years
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
21
3) Research equipment: 3 years
4) Other equipment: 0.5~5 years
Depreciation methods, useful lives, and residual values are reviewed at each reporting date. If
expectations differ from the previous estimates, the change is accounted for as a change in an
accounting estimate.
(k) Leases
(i)
Identifying a lease
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the Company assesses whether:
1)
2)
3)
the contract involves the use of an identified asset – this may be specified explicitly or
implicitly, and should be physically distinct or represent substantially all of the capacity
of a physically distinct asset. If the supplier has a substantive substitution right, then the
asset is not identified; and
the Company has the right to obtain substantially all of the economic benefits from use of
the asset throughout the period of use; and
the Company has the right to direct the use of the asset when it has the decision-making
rights that are most relevant to changing how and for what purpose the asset is used. In
rare cases where the decision about how and for what purpose the asset is used is
predetermined, the Company has the right to direct the use of an asset if either:
－
－
the Company has the right to operate the asset and the providers do not have the
right to vary; or
the Company designed the asset in a way that predetermines how and for what
purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, the Company
allocates the consideration in the contract to each lease component on the basis of their relative
stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the
Company has elected not to separate non-lease components and account for the lease and
non-lease components as a single lease component.
(ii) As a lessee
The Company recognizes a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount of
the lease liability adjusted for any lease payments made at or before the commencement date,
plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives received.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
22
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment
losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease or, if
that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally,
the Company uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
－
fixed payments, including in-substance fixed payments;
－
－
－
variable lease payments that depend on an index or a rate, initially measured using the
index or rate as at the commencement date;
amounts expected to be payable under a residual value guarantee; and
payments for purchase or termination options that are reasonably certain to be exercised.
The lease liability is measured at amortized cost using the effective interest method. It is
remeasured when:
－
－
－
－
there is a change in future lease payments arising from the change in an index or rate; or
there is a change in the Company’s estimate of the amount expected to be payable under
a residual value guarantee; or
there is a change in the lease term resulting from a change of its assessment on whether it
will exercise an option to purchase the underlying assets, or
there is a change of its assessment on whether it will exercise an extension or termination
option; or
－
there is any lease modifications
When the lease liability is remeasured, other than lease modifications, a corresponding
adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the
carrying amount of the right-of-use asset has been reduced to zero.
When the lease liability is remeasured to reflect the partial or full termination of the lease for
lease modifications that decrease the scope of the lease, the Company accounts for the
remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset
to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or
loss relating to the partial or full termination of the lease.
The Company presents right-of-use assets that do not meet the definition of investment and
lease liabilities as a separate line item respectively in the statement of financial position.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
23
The Company has elected not to recognize right-of-use assets and lease liabilities for short-term
leases of machinery and office equipment that have a lease term of 12 months or less and leases
of low-value assets. The Company recognizes the lease payments associated with these leases
as an expense on a straight-line basis over the lease term.
(iii) As a lessor
When the Company acts as a lessor, it determines at lease commencement whether each lease
is a finance lease or an operating lease. To classify each lease, the Company makes an overall
assessment of whether the lease transfers to the lessee substantially all of the risks and rewards
of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is
a finance lease; if not, then the lease is an operating lease. As part of this assessment, the
Company considers certain indicators such as whether the lease is for the major part of the
economic life of the asset.
(l)
Intangible assets
(i) Goodwill
1)
Initial recognition
Goodwill arising from acquisition of subsidiaries is included in intangible assets. The
measurement of initial recognition of goodwill, please refer to note (4)(t).
2)
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses.
Goodwill related to an investment accounted for using equity method is included in the
carrying amount of the investment, and not allocated to any asset, including goodwill,
forms part of the carrying amount of the investment accounted for using the equity
method.
(ii) Research & Development
During the research phase, activities are carried out to obtain and understand new scientific or
technical knowledge. Expenditures during this phase are recognized in profit or loss as
incurred.
Expenditures arising from the development phase shall be recognized as an intangible asset if
all the conditions described below can be demonstrated; otherwise, they will be recognized in
profit or loss as incurred.
1)
The technical feasibility of completing the intangible asset so that it will be available for
use or sale.
2)
Its intention to complete the intangible asset and use or sell it.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
24
3)
Its ability to use or sell the intangible asset.
4) How the intangible asset will generate probable future economic benefits.
5)
6)
The availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset.
Its ability to measure reliably the expenditure attributable to the intangible asset during its
development.
Capitalized expenditure arising from the development phase is measured at cost less
accumulated amortization and accumulated impairment losses.
(iii) Other intangible assets
Other intangible assets that are acquired by the Company are measured at cost, less
accumulated amortization and any accumulated impairment losses.
(iv) Subsequent expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure, including expenditure
on internally generated goodwill and brands, is recognized in profit or loss as incurred.
(v) Amortization
The amortizable amount is the cost of an asset, or other amount substituted for cost, less its
residual value.
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful
lives of intangible assets, other than goodwill and intangible assets with all indefinite useful life,
from the date that they are available for use. The estimated useful lives for the current and
comparative periods are as follows:
1)
Patents: the shorter of contract period and estimated useful lives
2) Computer software: 1~3 years
The residual value, the amortization period, and the amortization method for an intangible asset
with a finite useful life shall be reviewed at least annually at each fiscal year-end. Any change
shall be accounted for as changes in accounting estimates.
(m) Impairment of non-derivative financial assets
Non-derivative financial assets except for inventories, deferred tax assets, and assets arising from
employee benefits are assessed at the end of each reporting period whether there is any indication
that an asset may be impaired. If any such indication exists, the Company shall estimate the
recoverable amount of the asset. If it is not possible to determine the recoverable amount (fair value
less cost to sell and value in use) for the individual asset, then the Company will have to determine
the recoverable amount for the asset's cash-generating unit.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
25
The Company assesses goodwill and intangible assets, which have indefinite useful lives and are not
available for use, on an annual basis and recognizes an impairment loss on excess of carrying value
over the recoverable amount.
The recoverable amount for an individual asset or a cash-generating unit is the higher of its fair value,
less costs to sell and its value in use. If, and only if, the recoverable amount of an asset is less than its
carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. That
reduction is an impairment loss. An impairment loss shall be recognized immediately in profit or
loss.
For the purpose of impairment testing, goodwill acquired in a business combination shall, from the
acquisition date, be allocated to each of the acquirer’s cash-generating units, or groups of
cash-generating units that are expected to benefit from the synergies of the combination, irrespective
of whether other assets or liabilities of the acquire are assigned to those units or group of units. If the
carrying amount of the cash-generating units exceeds the recoverable amount of the unit, the entity
shall recognize the impairment loss and the impairment loss shall be allocated to reduce the carrying
amount of each asset in the unit. Reversal of an impairment loss for goodwill is prohibited.
The Company assesses at the end of each reporting period whether there is any indication that an
impairment loss recognized in prior periods for an asset other than goodwill may no longer exist or
may have decreased. An impairment loss recognized in prior periods for an asset other than goodwill
shall be reversed if, and only if, there has been a change in the estimates used to determine the asset’s
recoverable amount since the last impairment loss was recognized. If this is the case, the carrying
amount of the asset shall be increased to its recoverable amount. That increase is a reversal of an
impairment loss.
(n) Provisions
A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probably that an outflow of economic
benefits will be required to settle the obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects the current market assessments of the time
value of money and the risks specific to the liability. The unwinding of the discount is recognized as
finance cost.
(o) Treasury stock
Repurchased shares are recognized under treasury shares (a contra-equity account) based on its
repurchase price (including all directly accountable costs), and net of tax. Gains on disposal of
treasury shares should be recognized under Capital Reserve – Treasury Shares Transactions; losses
on disposal of treasury shares should be offset against existing capital reserves arising from similar
types of treasury shares. If there are insufficient capital reserves to be offset against, then such losses
should be accounted for under retained earnings. The carrying amount of treasury shares should be
calculated using the weighted average different types of repurchase.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
26
During the cancellation of treasury shares, Capital Reserve – Share Premiums and Share Capital
should be debited proportionately. Gains on cancellation of treasury shares should be recognized
under existing capital reserves arising from similar types of treasury shares; losses on cancellation of
treasury shares should be offset against existing capital reserves arising from similar types of treasury
shares. If there are insufficient capital reserves to be offset against, then such losses should be
accounted for under retained earnings.
(p) Revenue from contracts with customers
Revenue is measured based on the consideration to which the Company expects to be entitled in
exchange for transferring goods or services to a customer. The Company recognizes revenue when it
satisfies a performance obligation by transferring control of a good or a service to a customer. The
accounting policies for the Company’s main types of revenue are explained below.
i) Sale of goods
The Company manufactures and sells electronic products to electronic products brand vendor.
The Company recognizes revenue when control of the products has transferred, being when the
products are delivered to the customer, the customer has full discretion over the channel and
price to sell the products, and there is no unfulfilled obligation that could affect the customer’s
acceptance of the products. Delivery occurs when the products have been shipped to the
specific location, the risks of obsolescence and loss have been transferred to the customer, and
either the customer has accepted the products in accordance with the sales contract, the
acceptance provisions have lapsed, or the Company has objective evidence that all criteria for
acceptance have been satisfied.
The Company assesses sales discounts based on historical experience, management's judgment
and other known reasons. Such allowances are recognized as a deduction of sales revenue in
the same period in which sales are made. The aforementioned provisions are expected to settle
over the next year. A refund liability is recognized for expected discounts payable to customers
in relation to sales made until the end of the reporting period. No element of financing is
deemed present as the sales of electronic products are made with a credit term which is
consistent with the market practice.
A receivable is recognized when the goods are delivered as this is the point in time that the
Company has a right to an amount of consideration that is unconditional.
ii) Financing components
The Company does not expect to have any contracts where the period between the transfer of
the promised goods or services to the customer and payment by the customer exceeds one year.
As a consequence, the Company does not adjust any of the transaction prices for the time value
of money.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
27
(q) Employee benefits
(i) Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognized as an
employee benefit expense in profit or loss in the periods during which services are rendered by
employees.
(ii) Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The Company’s net obligation in respect of defined benefit pension plans is calculated
separately for each plan by estimating the amount of future benefit that employees have earned
in return for their service in the current and prior periods; that benefit is discounted to
determine its present value. The fair value of any plan assets is deducted. The discount rate is
the yield at the reporting date on government bonds that have maturity dates approximating the
terms of the Company’s obligations and that are denominated in the same currency in which
the benefits are expected to be paid.
The calculation of defined benefit obligation is performed annually by a qualified actuary using
the projected unit credit method. When the calculation results in a benefit to the Company, the
recognized asset is limited to the total of the present value of economic benefits available in the
form of any future refunds from the plan or reductions in future contributions to the plan. In
order to calculate the present value of economic benefits, consideration is given to any
minimum funding requirements that apply to any plan in the Company. An economic benefit is
available to the Company if it is realizable during the life of the plan, or on settlement of the
plan liabilities.
If the benefits of a plan are improved, the pension cost incurred from the portion of the
increased benefit relating to past service by employees, is recognized immediately in profit or
loss.
Re-measurement of net defined benefit liability (asset) (including actuarial gains, losses and the
return on plan asset and changes in the effect of the asset ceiling, excluding any amounts
included in net interest) is recognized in other comprehensive income (loss). The effect of
re-measurement of the defined benefit plan is charged to retained earnings.
The Company recognizes gains or losses on the curtailment or settlement of a defined benefit
plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any
resulting change in the fair value of plan assets and change in the present value of defined
benefit obligation.
(iii) Short term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
28
A liability is recognized for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Company has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee, and the obligation can be
estimated reliably.
(r) Share-based payment
The grant-date fair value of share-based payment awards granted to employee is recognized as
employee expenses, with a corresponding increase in equity, over the period that the employees
become unconditionally entitled to the awards. The amount recognized as an expense is adjusted to
reflect the number of awards which the related service and non-market performance conditions are
expected to be met, such that the amount ultimately recognized as an expense is based on the number
of award that meet the related service and non-market performance conditions at the vesting date.
For share-based payment awards with non-vesting conditions, the grant-date fair value of the
share-based payment is measured to reflect such conditions, and there is no true-up for differences
between expected and actual outcomes.
(s)
Income taxes
Income tax expenses include both current taxes and deferred taxes. Except for expenses related to
business combinations or recognized directly in equity or other comprehensive income, all current
and deferred taxes shall be recognized in profit or loss.
Current taxes include tax payables and tax deduction receivables on taxable gains (losses) for the
year calculated using the statutory tax rate on the reporting date or the actual legislative tax rate, as
well as tax adjustments related to prior years.
Deferred taxes arise due to temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases. Deferred taxes shall not be
recognized for the following exceptions:
(i) Assets and liabilities that are initially recognized but are not related to the business
combination and have no effect on net income or taxable gains (losses) during the transaction.
(ii) Temporary differences arising from equity investments in subsidiaries or joint ventures where
there is a high probability that such temporary differences will not reverse.
(iii) Initial recognition of goodwill.
Deferred tax assets and liabilities shall be measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled based on tax rates that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities may be offset against each other if the following criteria are met:
(i) The entity has the legal right to settle tax assets and liabilities on a net basis; and
(ii)
the taxing of deferred tax assets and liabilities fulfill one of the below scenarios:
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
29
1)
2)
levied by the same taxing authority; or
levied by different taxing authorities, but where each such authority intends to settle tax
assets and liabilities (where such amounts are significant) on a net basis every year of the
period of expected asset realization or debt liquidation, or where the timing of asset
realization and debt liquidation is matched.
A deferred tax asset should be recognized for the carry-forward of unused tax losses, unused tax
credits, and deductible temporary differences to the extent that it is probable that future taxable profit
will be available against which the unused tax losses, unused tax credits, and deductible temporary
differences can be utilized. Such unused tax losses, unused tax credits, and deductible temporary
differences shall also be re-evaluated every year on the financial reporting date, and they shall be
adjusted based on the probability that future taxable profit that will be available against which the
unused tax losses, unused tax credits, and deductible temporary differences can be utilized.
The surtax on unappropriated earnings is recoded as current tax expense in the following year after
the resolution to appropriate retained earnings is approved in a stockholders’ meeting.
(t) Business combination
Goodwill is measured as an aggregation of the consideration transferred (which generally is
measured at fair value at the acquisition date) and as an amount of any non-controlling interest in the
acquiree, net of the acquisition-date amounts of the identifiable assets acquired and liabilities
assumed (generally at fair value). If the residual balance is negative, the Company shall re-assess
whether it has correctly identified all of the assets acquired and liabilities assumed, and recognize a
gain on the bargain purchase thereafter.
All the transaction costs incurred for the business combination are recognized immediately as the
Company’s expenses when incurred, except for the issuance of debt or equity instruments.
If the business combination is achieved in stages, the Company shall measure any non-controlling
equity interest in the acquiree either at fair value or at the non-controlling interest’s proportionate
share of the acquiree’s identifiable net assets. Other non-controlling interest is measured (1) at fair
value at the acquisition date or (2) by using other valuation techniques acceptable under the IFRS as
endorsed by the FSC.
In a business combination achieved in stages, the Company shall re-measure its previously held
equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss,
if any, in profit or loss. In prior reporting periods, the Company may have recognized changes in the
value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was
recognized in other comprehensive income shall be recognized on the same basis as would be
required if the Company had disposed directly of the previously held equity interest. If the disposal
of the equity interest required a reclassification to profit or loss, such an amount shall be reclassified
to profit or loss.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
30
If the initial accounting for a business combination is incomplete by the end of the reporting period
in which the combination occurs, the Company shall report in its financial statements provisional
amounts for the items for which the accounting is incomplete. During the measurement period, the
Company shall retrospectively adjust the provisional amounts recognized at the acquisition date, or
recognize additional assets or liabilities to reflect new information obtained about facts and
circumstances that existed as of the acquisition date. The measurement period shall not exceed one
year from the acquisition date.
(u) Earnings per share
The Company discloses the basic and diluted earnings per share attributable to ordinary equity
holders of the Company. The calculation of basic earnings per share is based on the profit
attributable to the ordinary shareholder of the Company divided by weighted average number of
ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit
attributable to ordinary shareholders of the Company divided by weighted average number of
ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.
Dilutive potential ordinary shares comprise employee compensation not yet approved by the Board
of Directors.
(v) Operating segments
The operating segment information is disclosed within the consolidated financial statements but not
disclosed in the parent-company-only financial statements.
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:
The preparation of the financial statements in conformity with the IFRSs endorsed by the FSC requires
management to make judgments, estimates, and assumptions that affect the application of the accounting
policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from
these estimates.
The management continues to monitor the accounting estimates and assumptions. The management
recognizes any changes in accounting estimates during the period and the impact of those changes in
accounting estimates in the next period.
There are no critical judgments in applying the accounting policies that have significant effect on the
amounts recognized in the financial statements.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment to the carrying amounts of assets and liabilities within the next financial year is as
follows. Those assumptions and estimation have been updated to reflect the impact of COVID-19
pandemic.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
31
(a) Recognition and measurement of refund liabilities
Because of the sales returns and allowances, the Company records refund liabilities (sales returns and
allowances provisions) for estimated returns and other allowances in the same period the related
revenue is recorded. The estimate is made based on historical experience, market and economic
conditions, and any other known factors using the expected value or the most likely amount, and it
could be different from actual sales returns and allowances, therefore, the management periodically
reviews the adequacy of the estimation used.
(b) Valuation of inventories
As inventories are stated at the lower of cost or net realizable value, the net realizable value of the
inventory is mainly determined based on assumptions as to future demand within a specific time
horizon. Due to the rapid industrial changes, there may be significant differences in the net realizable
value of inventories. Refer to note (6)(f) for further description of the valuation of inventories.
(6) Explanation of significant accounts:
(a) Cash and cash equivalents
Cash on hand
Checking accounts and demand deposits
Time deposits
Bonds purchased under resale agreements
December
31, 2020
December
31, 2019
$
1,700
1,527
7,578,068
3,523,187
76,598
9,885,255
10,000
50,000
$
7,666,366
13,459,969
Please refer to note (6)(u) for the disclosure of the exchange rate risk, the interest rate risk and the
fair value sensitivity analysis of the financial assets and liabilities of the Company.
(b) Financial assets and liabilities at fair value through profit or loss
Mandatorily measured at fair value through profit or loss:
Non-derivative financial assets
Structured deposits
Stock unlisted in domestic markets
Fund in foreign market
Total
Current
Non-current
December
31, 2020
December
31, 2019
$
-
100,190
58,579
158,769
-
158,769
158,769
$
$
$
149,888
24,350
46,747
220,985
149,888
71,097
220,985
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
32
For the market risk related to the financial instruments, please refer to note (6)(u).
As of December 31, 2020 and 2019, the Company did not provide any aforementioned financial
assets as collaterals for its loans.
(c) Financial assets at fair value through other comprehensive income
Equity investments at fair value through other comprehensive
income:
Stock listed in domestic markets
Stock listed in foreign markets
Stock unlisted in domestic markets
Stock unlisted in foreign markets
Total
December
31, 2020
December
31, 2019
$
1,520,779
1,614,565
491,243
801,238
67,861
448,110
914,507
42,211
$
2,881,121
3,019,393
The purpose that the Company invests in the abovementioned equity securities is for long-term
strategies, but rather for trading purpose. Therefore, these equity securities are designated as at
FVOCI.
For the year ended December 31, 2020, the Company had sold all of its shares, measured at fair
value through other comprehensive income, in Global Bio Pharma, Inc. and Taiwan Sanga Co., Ltd.
The fair value of the shares upon disposal amounted to $25,156, resulting in a cumulative loss of
$24,844, which was reclassified from other comprehensive income to retained earnings.
For the year ended December 31, 2019, the Company had sold all of its shares in Prime Sensor
Technology Inc., Macroblock Inc., and Innolux Corporation (“Innolux”), which were measured at
fair value through other comprehensive income. The fair value of the shares was $845,202 when
disposed and the cumulative losses amounted to $4,824,910, which had been transferred to retained
earnings from other comprehensive income.
If there is an increase (decrease) in the market price by 5% on the reporting date of the equity
securities hold by the Company, the increase (decrease) in other comprehensive income (pre-tax) for
the years ended December 31, 2020 and 2019, will be $144,056 and $150,970, respectively. These
analyses are performed on the same basis for the period and assume that all other variables remain
the same.
For the Company’s information of market risk, please refer to note (6)(u).
As of December 31, 2020 and 2019, the Company did not provide any financial assets at fair value
through other comprehensive income as collaterals for its loans.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
33
(d) Notes and accounts receivable
Notes receivable from operating activities
December
31, 2020
-
$
December
31, 2019
1,104
Accounts receivable – measured at amortized cost
194,723,552
154,482,480
Accounts receivable – fair value through other comprehensive
income
Less: allowance for uncollectible accounts
Notes and accounts receivable
Notes and accounts receivable – related parties
38,331,299
27,170,468
233,054,851
181,654,052
(3,634,794)
(3,634,190)
$ 229,420,057
178,019,862
$ 218,292,177
176,967,731
$
11,127,880
1,052,131
The Company has assessed a portion of its trade receivables that was held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial assets;
therefore, such trade receivables were measured at fair value through other comprehensive income.
The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of
lifetime expected loss provision for all receivables. To measure the expected credit losses, trade
receivables have been grouped based on shared credit risk characteristics and the days past due, as
well as incorporated forward looking information.
The loss allowance provision of the Company were determined as follows:
December 31, 2020
Carrying
amount of
notes and
accounts
receivable
$
224,404,852
Weighted- ave
rage
ECL rate
0%
Lifetime ECLs
-
Credit-impai
red
No
5,026,262
3,623,737
0.22%
100%
$
233,054,851
11,057
3,623,737
3,634,794
No
Yes
Credit rating
Level A
Level B
Level C
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
34
December 31, 2019
Carrying
amount of
notes and
accounts
receivable
$
173,733,360
Weighted- ave
rage
ECL rate
0%
Lifetime ECLs
-
Credit-impai
red
No
4,296,955
3,623,737
0.24%
100%
$
181,654,052
10,453
3,623,737
3,634,190
No
Yes
Credit rating
Level A
Level B
Level C
The aging analysis of notes and accounts receivable, was determined as follows:
Overdue 1 to 180 days
December
31, 2020
December
31, 2019
$
1,364,958
497,543
The movement in the allowance for notes and accounts receivable was as follow:
Balance at January 1
Impairment losses recognized
Amounts written off
Balance at December 31
2020
2019
$
3,634,190
3,718,560
604
-
1,537
(85,907)
$
3,634,794
3,634,190
Allowance for uncollectible account is the balance of accounts receivables which are uncollectable.
Except for evaluating the situation of the customers’ payment records and widely analyzing the credit
rating of customers, the Company also takes all the necessary procedures for collection. The
Company believes that there is no doubt for the recovery of the due but unimpaired account
receivable, therefore, no allowance recognized.
The Company entered into accounts receivable factoring agreements with banks. As of December 31,
2020 and 2019, except for the amount used under the actual sales amount in accordance with certain
agreements, the factoring amount granted by the banks was USD 1,600,000 thousands and USD
1,000,000 thousands, respectively. Based on the agreements, the Company is not responsible for
guaranteeing the ability of the accounts receivable obligor to make payment when it is affected by
credit risk. Thus, this is a non-recourse accounts receivable factoring. The Company derecognized
the above account receivables because it has transferred substantially all of the risks and rewards of
their ownership and it does not have any continuing involvement in them. After the transfer of the
accounts receivable, the Company can request partial advanced amount, while the interest calculated
at an agreed rate is paid to the bank in the period during the time of receiving advance and the
accounts receivable is collected. The remaining amounts with no advance are received when the
accounts receivable are settled by the customers. As of December 31, 2020 and 2019, accounts
receivable factored were recovered.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
35
The Company, customers, and banks signed the three-party contracts in which the banks purchase
accounts receivable from the Company. The total amount of the accounts receivable should not
exceed the facility limit provided by the banks to the Company’s customers. Based on the contracts,
the banks have no right to request the Company to repurchase the accounts receivable. Thus, this is a
non-recourse accounts receivable transfer. As of December 31, 2020 and 2019, accounts receivable
factored were recovered.
The details of the factored accounts receivable at the reporting date were as follows:
December 31, 2020
Accounts
receivable
factored
(gross)
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivables Collateral derecognized
Interest rate
Amount
Institution $ 42,187,597
-
42,187,597
-
-
42,187,597 0.58%~0.93%
December 31, 2019
Accounts
receivable
factored
(gross)
Amount advanced
Paid
Unpaid
Amount
recognized
in other
Amount
receivables Collateral derecognized
Interest rate
Institution $ 25,672,764
-
25,672,764
-
-
25,672,764 2.21%~2.80%
Purchaser
Financial
Purchaser
Financial
As of December 31, 2020 and 2019, the Company did not provide any aforementioned notes and
accounts receivable as collaterals.
(e) Other receivables
Other receivables - loans to subsidiaries
Other receivables - related parties
Others
December
31, 2020
December
31, 2019
$
1,644,000
1,719,000
141,149
149,120
1,061,348
1,242,487
$
2,846,497
3,110,607
As of December 31, 2020 and 2019, none of other receivables were past due.
(f)
Inventories
Finished goods
Work in progress
Raw materials
December
31, 2020
11,718,417
682,167
43,391,764
55,792,348
$
$
December
31, 2019
13,454,860
152,421
36,440,788
50,048,069
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
36
(i) During the years ended December 31, 2020 and 2019, inventory cost recognized as cost of
sales amounted to $968,054,585 and $891,431,772, respectively.
(ii) The write-down of inventories to net realizable value amounted to $35,077 in the year ended
December 31, 2020. The Company reversed its allowance for inventory valuation loss
amounting to $66,336 due to sale and disposal of its obsolete inventories in the year ended
December 31, 2019.
(iii) As of December 31, 2020 and 2019, the Company did not provide any inventories as collaterals
for its loans.
(g)
Investments accounted for using equity method
A summary of the Company’s financial information for equity-accounted investees at the reporting
date is as follows:
Subsidiaries
Associates
Plus: Other receivables–related parties
Credit balance of investment in equity method (other
non-current liability)
Less: unrealized profits or losses
December
31, 2020
79,719,654
$
December
31, 2019
79,267,709
2,877,977
2,615,406
82,597,631
81,883,115
581,227
659,296
789,148
(10,157)
891,274
(3,516)
$
83,957,849
83,430,169
(i)
Subsidiaries
Please refer to the consolidated financial statement for the year ended December 31, 2020.
(ii) Associates
1)
The fair value of the shares of listed company based on the closing price was as follow:
December
31, 2020
December
31, 2019
Allied Circuit Co., Ltd. (“Allied Circuit”)
$
1,229,085
1,076,719
Avalue Technology Inc. (“Avalue”)
828,286
1,147,839
$
2,057,371
2,224,558
2)
The Company’s share of the net gain (loss) of associates was as follows:
The Company’s share of the gain of associates
$
258,376
70,378
2020
2019
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
37
3)
The Company's financial information for investments accounted for using the equity
method that are individually immaterial was as follows:
Carrying amount of individually immaterial associates
$
2,877,977
2,615,406
December
31, 2020
December
31, 2019
The Company’s share of the net income (loss) of
associates:
2020
2019
Profit from continuing operations
Other comprehensive income (loss)
Total comprehensive income (loss)
$
$
258,376
107,656
366,032
70,378
(158,336)
(87,958)
4)
For the years ended December 31, 2020 and 2019, the Company had sold part of its
shares held in Avalue, with a consideration (net of costs of disposal) amounting to $8,306
and $18,034, respectively. The transactions have been completed and the price has been
fully recovered, wherein the Company recognized gains of $3,914 and $8,990,
respectively, which were accounted for as other gain and loss.
(iii) As of December 31, 2020 and 2019, the Company did not provide any investments accounted
for using equity method as collaterals for its loans.
(h) Changes in subsidiaries’ equity
(i) Changes in subsidiaries’ equity did not result in the Company’s loss of control
1)
Subsidiaries’ employee stock options exercised
Compal Broadband Network Inc. (“CBN”) issued 45 thousand and 69 thousand new
shares because of its employees ’ exercised stock options in 2020 and 2019,
respectively, resulting in a decrease in the ownership of the Company and its subsidiaries
in CBN by 0.03% and 0.07%, respectively.
2)
Issuance of new shares for cash of subsidiaries
The Company and its subsidiaries purchased newly issued shares of Arcadyan amounting
to $323,917 at a percentage different from its existing ownership percentage in the fourth
quarter of 2019, resulting in a decrease in the ownership of the Company and its
subsidiaries in Arcadyan by 0.37%.
3)
Issuance and cancellation of subsidiaries’ restricted shares
Arcadyan canceled 126 thousand and 84 thousand restricted shares in the years ended
December 31, 2020 and 2019, respectively, resulting in an increase of 0.01% of the
ownership of the Company and its subsidiaries in Arcadyan for the both years.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
38
4)
The following summarizes the effect of changes in equity of the Company due to changes
in the ownership interest of subsidiaries:
Capital surplus – changes in ownership interest in
subsidiaries
2020
2019
$
1,735
43,473
(i)
Property, plant and equipment
The cost, depreciation, and impairment of the property, plant and equipment of the Company for the
years ended December 31, 2020 and 2019, were as follows:
Cost:
Balance on January 1, 2020
Additions
Disposals and derecognitions
Reclassifications
Balance on December 31, 2020
Balance on January 1, 2019
Additions
Disposals and derecognitions
Reclassifications
Balance on December 31, 2019
Depreciation and impairments loss:
Balance on January 1, 2020
Depreciation for the period
Disposals and derecognitions
Balance on December 31, 2020
Balance on January 1, 2019
Depreciation for the period
Disposals and derecognitions
Balance on December 31, 2019
Carrying amounts:
Balance on December 31, 2020
Balance on January 1, 2019
Balance on December 31, 2019
Buildings
and building
improvement
Other
equipment
Land
Under
construction
and
prepayment for
purchase of
equipment
Total
$
1,047,797
2,390,275
2,382,078
188,245
6,008,395
-
-
-
138,772
342,763
70,149
551,684
(11,722)
(89,536)
(157,408)
(258,666)
1,175
90,255
(91,430)
-
$
$
1,047,797
2,518,500
2,725,560
9,556
6,301,413
1,047,797
2,194,761
2,112,018
36,487
5,391,063
-
-
-
138,731
343,873
279,325
761,929
(6,637)
(137,960)
-
(144,597)
63,420
64,147
(127,567)
-
$
1,047,797
2,390,275
2,382,078
188,245
6,008,395
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
1,443,734
1,944,023
122,763
241,067
(11,722)
(43,345)
1,554,775
2,141,745
1,368,955
1,893,927
80,891
185,219
(6,112)
(135,123)
1,443,734
1,944,023
-
-
-
-
-
-
-
-
3,387,757
363,830
(55,067)
3,696,520
3,262,882
266,110
(141,235)
3,387,757
1,047,797
963,725
583,815
9,556
2,604,893
1,047,797
825,806
218,091
36,487
2,128,181
1,047,797
946,541
438,055
188,245
2,620,638
As of December 31, 2020 and 2019, the Company did not provide property, plant and equipment as
collateral for its borrowing.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
39
(j) Right-of-use assets
The Company leases many assets including buildings and vehicles. Information about leases for
which the Company as a lessee is presented below:
Buildings
Vehicles
Total
Cost:
Balance on January 1, 2020
Additions
Deductions
Balance on December 31, 2020
Balance on January 1, 2019
Additional
Deductions
Balance on December 31, 2019
Depreciation:
Balance on January 1, 2020
Depreciation for the period
Deductions
Balance on December 31, 2020
Balance on January 1, 2019
Depreciation for the period
Deductions
Balance on December 31, 2019
Carrying amount:
Balance on December 31, 2020
Balance on January 1, 2019
Balance on December 31, 2019
$
$
$
$
$
$
$
$
$
1,687,346
369,422
(73,493)
1,983,275
781,756
979,422
(73,832)
1,687,346
333,271
450,829
(73,090)
711,010
-
407,103
(73,832)
333,271
1,272,265
781,756
1,354,075
50,120
2,175
(7,121)
45,174
40,060
12,098
(2,038)
50,120
16,580
17,850
(7,116)
27,314
-
18,618
(2,038)
16,580
1,737,466
371,597
(80,614)
2,028,449
821,816
991,520
(75,870)
1,737,466
349,851
468,679
(80,206)
738,324
-
425,721
(75,870)
349,851
17,860
1,290,125
40,060
33,540
821,816
1,387,615
(k) Short-term borrowings
The details of short-term borrowings were as following:
Unsecured bank loans
Unused credit line for short-term borrowings
Range of interest rates
December
31, 2020
December 31,
2019
$
$
55,991,680
39,363,800
46,248,000
57,478,000
0.48%~1.00%
0.66%~2.49%
For information on the Company’s interest risk, foreign currency risk and liquidity risk, please refer
to note (6)(u).
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
40
(l) Long-term borrowings
The details of long-term borrowings were as follows:
Unsecured bank loans
December 31, 2020
Currency
TWD
Range of annual
interest rates
0.66%~0.98%
Maturity year
2021~2023
Amount
$
11,900,000
Unsecured bank loans
USD
0.69%~0.92%
2021~2022
Less: current portion
Total
Unused credit line for
long-term borrowings
Unsecured bank loans
Less: current portion
Total
Unused credit line for
long-term borrowings
7,205,440
(8,855,440)
10,250,000
15,290,000
$
$
December 31, 2019
Currency
TWD
Range of annual
interest rates
0.73%~1.18%
Maturity year
2020~2023
Amount
$
25,650,000
(18,150,000)
7,500,000
11,807,000
$
$
For information on the Company’s interest risk, foreign currency risk and liquidity risk, please refer
to note (6)(u).
(m) Lease liabilities
The details of lease liabilities were as follows:
Current
Non-current
For the maturity analysis, please refer to note (6)(u).
The amounts recognized in profit or loss was as follows:
December
31, 2020
December
31, 2019
$
202,113
$ 1,096,415
387,499
1,010,933
Interest on lease liabilities
Expenses relating to leases of low-value assets or short-term
leases
2020
2019
17,077
13,549
5,843
3,325
$
$
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
41
The amounts recognized in the statement of cash flows for the Company was as follows:
Total cash outflow for leases
(i) Building leases
2020
2019
$
494,013
431,730
The Company leases buildings for its office and factory space, typically run for a period of
1~10 years.
(ii) Other leases
The Company leases vehicles with lease terms of 1~5 years.
The Company also leases some machinery and office equipment with contract terms of 1~3
years. These leases are short-term or leases of low-value items. The Company has elected not
to recognize right-of-use assets and lease liabilities for these leases.
(n) Employee benefits
(i) Defined benefit plans
Reconciliation of defined benefit obligations at present value and plan assets at fair value were
as follows:
Present value of defined benefit obligations
Fair value of plan assets
Net defined benefit liabilities
December
31, 2020
(1,286,459)
$
December
31, 2019
(1,270,206)
599,405
626,953
$
(687,054)
(643,253)
The Company makes defined benefit plan contributions to the pension fund account with Bank
of Taiwan that provides pensions for employees upon retirement. The plans (covered by the
Labor Standards Law) entitle a retired employee to receive retirement benefits based on years
of service and average salary for the six months prior to retirement.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
42
1) Composition of plan assets
The Company allocates pension funds in accordance with the Regulations for Revenues,
Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds
are managed by the Labor Pension Fund Supervisory Committee. With regard to the
utilization of the funds, minimum earnings in the annual distributions on the final
financial statements shall be no less than the earnings attainable from the amounts
accrued from two-year time deposits with interest rates offered by local banks.
The balance of the Company’s labor pension reserve account in the Bank of Taiwan
amounted to $594,242 (excluding the ending balance of interest receivable) as of
December 31, 2020. For information on the utilization of the labor pension fund assets
including the asset allocation and yield of the fund, please refer to the website of the
Bureau of Labor Funds, Ministry of Labor.
2) Movements in the present value of the defined benefit obligations
The movements in the present value of defined benefit obligations for the Company were
as follows:
Defined benefit obligations on January 1
$
(1,270,206)
2020
Current service costs and interest
Remeasurements of net benefit liabilities
Benefit paid by the plan
(15,945)
(77,143)
76,835
2019
(1,246,221)
(21,108)
(53,073)
50,196
Defined benefit obligations on December 31
$
(1,286,459)
(1,270,206)
3) Movements of the fair value of defined benefit plan assets
The movements in the fair value of the defined benefit plan assets for the Company were
as follows:
2020
2019
Fair value of plan assets on January 1
$
626,953
Expected return on plan assets
Remeasurements of net benefit plan assets
Contributions paid by the employer
Benefits paid by the plan
Fair value of plan assets on December 31
$
5,455
19,919
23,913
(76,835)
599,405
624,640
7,875
20,428
24,206
(50,196)
626,953
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
43
4)
Expenses recognized in profit or loss
The expenses recognized in profit or loss for the Company were as follows:
2020
2019
Current service cost
Net interest on the net defined benefit liability
(asset)
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
$
$
$
$
4,811
5,679
10,490
383
504
2,611
6,992
10,490
5,314
7,919
13,233
517
631
3,239
8,846
13,233
5) Actuarial assumptions
The following were the Company’s principal actuarial assumptions at the reporting date:
Discount rate
Future salary increase rate
December 31,
2020
0.50%
3.00%
December 31,
2019
0.90%
3.00%
The expected allocation payment made by the Company to the defined benefit plans for
the one year period after the reporting date is $25,409.
The weighted-average lifetime of the defined benefit plan is 9.6 years.
6)
Sensitivity analysis
If the main actuarial assumptions had changed, the impact on the present value of the
defined benefit obligation shall be as follows:
December 31, 2020
Discount rate
Future salary increasing rate
December 31, 2019
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(30,316)
30,583
(30,821)
31,239
31,422
(29,675)
31,967
(30,287)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
44
Reasonably possible changes at the reporting date to one of the relevant actuarial
assumptions, holding other assumptions constant, would have affected the defined benefit
obligation by the amounts shown above. The method used in the sensitivity analysis is
consistent with the calculation on the net defined benefit liabilities in the balance sheets.
The method and assumption used in the sensitivity analysis is consistent with prior
period.
(ii) Defined contribution plans
The Company allocates 6% of each employee’s monthly wages to the labor pension personal
account at the Bureau of Labor Insurance in accordance with the provisions of the Labor
Pension Act. Under these defined contribution plans, the Company allocates the labor
pension at a specific percentage to the Bureau of the Labor Insurance without additional legal
or constructive obligations.
The Company recognized the pension costs under the defined contribution method amounting
to $364,251 and $335,403 for the years ended December 31, 2020 and 2019, respectively.
Payment was made to the Bureau of Labor Insurance.
(o)
Income taxes
(i)
Income tax expenses
1)
The amount of income tax for the years ended December 31, 2020 and 2019, was as
follows:
Current tax expense
Recognized during the period
Undistributed earnings additional tax
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary differences
2020
2019
$
1,319,010
16,836
934,581
274,317
(273,959)
(438,511)
1,061,887
770,387
3,497
3,497
97,393
97,393
Income tax expense
$
1,065,384
867,780
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
45
2)
The amount of income tax recognized in other comprehensive income for the years ended
December 31, 2020 and 2019, was as follows:
Items that will not be reclassified subsequently to profit
or loss:
Remeasurement of defined benefit obligation
$
(11,445)
(6,529)
2020
2019
Unrealized gains (losses) on equity instruments at fair
value through other comprehensive income
8,627
(2,818)
$
9,585
3,056
3)
The income tax expense that was reconciled between the actual income tax expense and
profit before tax for the years ended December 31, 2020 and 2019, was as follows:
Profit before tax
Income tax calculated based on tax rate
Undistributed earnings additional tax
Estimated tax effect of tax exemption on investment
income, net
Realized investment loss
Investment tax credit
Changes in temporary differences
Adjustment of estimated difference and other
2020
10,427,277
2019
7,823,679
2,085,455
1,564,736
$
$
16,836
274,317
(169,069)
(60,000)
(55,294)
(25,237)
(273,959)
(438,511)
(873,487)
(211,637)
339,608
(240,594)
Income tax expense
$
1,065,384
867,780
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2020 and 2019 were as follows:
Exchange
differences on
translation
Refund
liabilities
Contract
liabilities
Unrealized
exchange
losses, net
Others
Total
Deferred tax assets:
$
Balance on January 1, 2020
Recognized in profit or loss
Recognized in other
comprehensive income
Balance on December 31, 2020 $
Balance on January 1, 2019
$
Recognized in profit or loss
Recognized in other
comprehensive income
Balance on December 31, 2019 $
-
-
-
-
9,823
120,603
14,277
59,429
(9,893)
670,265
(82,240)
306,688
1,166,808
2,257
(75,599)
- - -
9,823
9,823
134,880
178,025
49,536
164,955
(57,422)
(105,526)
588,025
106,526
563,739
11,445
320,390
301,251
(1,092)
11,445
1,102,654
760,580
399,699
- - -
6,529
6,529
9,823
120,603
59,429
670,265
306,688
1,166,808
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
46
Deferred tax liabilities:
Balance on January 1, 2020
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2020
Balance on January 1, 2019
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2019
Unrealized
exchange
gains, net
Others
Total
$
(497,092)
(396,140)
(893,232)
72,102
-
-
(8,627)
72,102
(8,627)
$
$
(424,990)
(404,767)
(829,757)
-
(386,555)
(386,555)
(497,092)
-
(497,092)
-
(9,585)
(9,585)
$
(497,092)
(396,140)
(893,232)
(iii) Unrecognized deferred tax assets
Deferred tax assets have not been recognized in respect of the following items:
Tax effect of deductible temporary differences
December
31, 2020
December
31, 2019
$
388,424
398,919
The Company assesses and considers that some of the income tax reduction items may be
unrealized, hence they are not recognized as deferred tax assets.
(iv) Unrecognized deferred tax assets and liabilities related to investments in subsidiaries
The temporary differences associated with investment in subsidiaries were not recognized as
deferred income tax assets and liabilities as the Company has the ability to control the reversal
of these temporary differences which are not expected to reverse in the foreseeable future.
As of December 31, 2020 and 2019, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $1,856,500 and
$1,894,891, respectively.
As of December 31, 2020 and 2019, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $54,205,119
and $53,620,982, respectively.
(v) Examination and approval
The Company’s tax returns for the year through 2018 were assessed by the tax authorities.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
47
(p) Capital and other equities
(i) Ordinary shares
As of December 31, 2020 and 2019, the Company’s authorized common stock consisting of
6,000,000 thousand shares with a par value of 10 New Taiwan dollar per share amounted to
$60,000,000 of which 4,407,147 thousand shares were issued. All issued shares were paid up
upon issuance.
(ii) Capital surplus
The balances of capital surplus were as follows:
Additional paid-in capital
Treasury share transactions
December
31, 2020
December
31, 2019
$
5,422,060
6,302,490
2,541,906
2,481,885
Difference between consideration and carrying amount arising
from acquisition or disposal of subsidiaries
Recognition of changes in ownership interests in subsidiaries
Changes in equity of associates and joint ventures accounted
36,766
60,850
36,766
59,115
for using equity method
281,231
279,003
$
8,342,813
9,159,259
In accordance with the ROC Company Act, realized capital reserves can only be used to
increase the common stock or distributed as cash dividends after offsetting losses. The
aforementioned capital reserves include share premiums and donation gains. In accordance
with the Securities Offering and Issuance Guidelines, the amount of capital reserves to be
reclassified under share capital shall not exceed 10% of the actual share capital amount.
The Company’s shareholders’ meeting held on June 21, 2019, approved to distribute cash of
$881,429 (representing 0.2 New Taiwan dollars per share), by using the additional paid-in
capital.
The Company’s Board of Directors’ meeting held on March 30, 2020, approved to distribute
cash of $881,429 (representing 0.2 New Taiwan dollars per share), by using the additional
paid-in capital.
The Company’s Board of Directors’ meeting held on March 36, 2021, approved to distribute
cash of $1,762,859 (representing 0.4 New Taiwan dollars per share), by using the additional
paid-in capital. The related information can be accessed through the Market Observation Post
system website after the Board of Directors’ meeting.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
48
(iii) Retained earnings
Based on the Company’s articles of incorporation amended on June 21, 2019, if there is any
profit after closing of books in a given year, the Company shall first defray tax due, cover
accumulated losses and set aside ten percent of it as legal reserve and then set aside or reverse a
special reserve in accordance with laws and regulations. The balance of earnings available for
distribution is composed of the remainder of the said profit and the unappropriated retained
earnings of previous years. The Board of Directors may set aside a certain amount to cope with
the business operation conditions, and shall prepare the proposal for distribution of the balance
amount thereof after a resolution has been adopted and then allocated by the Board of Directors.
The Company authorizes the Board of Directors to distribute all or part of the dividends and
bonuses, capital surplus or legal reserve in cash after a resolution has been adopted by a
majority vote at a meeting of the Board of Directors attended by two-thirds of the total number
of directors; and in addition thereto a report of such distribution shall be submitted to the
General shareholders’ meeting.
Based on the Company’s articles of incorporation before amended on June 21, 2019, if there is
any profit after closing of books in a given year, the Company shall first defray tax due, cover
accumulated losses and set aside ten percent of it as legal reserve and then set aside or reverse a
special reserve in accordance with laws and regulations. The balance of earnings available for
distribution is composed of the remainder of the said profit and the unappropriated retained
earnings of previous years. The earnings appropriation proposal to distribute dividend and
bonus shall be proposed by the Board of Directors and approved by the General Shareholders
Meeting. The rest of the unappropriated retained earnings shall be reserved.
The lifecycle of the industry of the Company is in the growing stage. To consider the need of
the Company for the future capital, capital budget, long-term financial planning, domestic and
foreign competition, the need of shareholders for cash flow and other factors, if there is any
profit after close of books, the dividend and bonus to be distributed to shareholders shall not be
less than thirty percent of profit after tax for such year and the cash dividend allocated by the
Company each year shall not be lower than ten percent of the total dividend (including cash
and share dividend) for such year.
According to the law, when there is a deduction from stockholders' equity (excluding treasury
stock and unearned employee benefit) during the year, an amount equal to the deduction item is
set aside as a special reserve before the earnings are appropriated. A special reserve is made
available for earning distribution only after the deduction of the related shareholders’ equity
has been reversed.
1)
Legal reverse
When a company incurs no loss, it may, in pursuant to a resolution to be adopted by the
shareholders’ meeting as required, distribute its legal reserve by issuing new shares and
distributing stock dividends or distributing cash to shareholders. Only the portion of the
legal reserve which exceeds 25% of the paid-in capital may be distributed.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
49
2)
Special reverse
In accordance with Ruling No. 1010012865 issued by the FSC on April 6, 2012, a portion
of current earnings and previous unappropriated earnings shall be set aside as a special
reserve during earnings distribution. The amount to be set aside should equal the total
amount of contra accounts that are accounted for as deductions to other equity interests.
A portion of previous unappropriated earnings shall be set aside as a special reserve,
which should not be distributed, to account for cumulative changes to other equity
interests pertaining to prior periods. The special reserve shall be made available for
appropriation when the net deductions of other equity interests are reversed in the
subsequent periods.
3)
Earnings distribution
Distribution for the earnings of 2019 was approved in the meeting of the Board of
Directors held on March 30, 2020, and of 2018 was approved by the shareholders during
their annual meeting held on June 21, 2019. The relevant information was as follows:
2019
2018
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed to
common shareholders
$ 1.0
4,407,147
1.0
4,407,147
Distribution for the earnings of 2020 was approved in the meeting of the Board of
Directors held on March 26, 2021. The relevant information was as follows:
2020
Amount
per share
Total
amount
Cash dividends distributed to common shareholders from
the unappropriated earnings
$ 1.2
5,288,576
The related information of the earnings distribution for the year ended December 31,
2020, can be accessed through the Market Observation Post System website after the
related meeting.
(iv) Treasury stock
The subsidiaries of the Company did not sell the ordinary shares of the Company in the years
ended December 31, 2020 and 2019. As of December 31, 2020, Panpal and Gempal,
subsidiaries of the Company, held 50,017 thousand shares of ordinary shares of the Company,
recorded as the Company’s treasury stock, with a book value of 17.6 New Taiwan dollars per
share. The total cost was $881,247. The fair value of the ordinary shares of the Company was
20.70 and 18.85 New Taiwan dollars per share as of December 31, 2020 and 2019,
respectively.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
50
Pursuant to the Securities and Exchange Act, the number of treasury shares purchased cannot
exceed 10% of the number of shares issued. The total purchase cost cannot exceed the sum of
retained earnings, paid-in capital in excess of par value and realized capital surplus. The shares
purchased for the purpose of transferring to employees shall be transferred within three years
from the date of share repurchase. Those not transferred within the said limit shall be deemed
as not issued by the Company and it should be cancelled. Furthermore, treasury stock cannot be
pledged for debts, and treasury stock does not carry any shareholder rights until it is
transferred.
(v) Other equity interests (net-of-taxes)
Exchange
differences on
transaction of
foreign operation
financial
statements
Unrealized gain
(loss) from
financial assets at
fair value through
other
comprehensive
income
Unearned
compensation
for restricted
employee shares
and others
Total
Balance on January 1, 2020
$
(3,794,980)
(306,763)
(1,706)
(4,103,449)
The Company
Subsidiaries
Associates
Balance on December 31, 2020
Balance on January 1, 2019
$
$
The Company
Subsidiaries
Associates
(3,073,441)
(100,249)
(182,054)
75,529
161,498
(45,469)
(6,888,977)
(376,952)
(1,852,952)
(5,606,436)
(1,620,812)
4,936,223
(52,530)
252,170
(268,686)
111,280
-
-
-
-
-
(3,173,690)
927
(105,598)
116,029
(779)
(7,266,708)
(7,459,388)
3,315,411
(1,706)
197,934
(157,406)
Balance on December 31, 2019
$
(3,794,980)
(306,763)
(1,706)
(4,103,449)
(q) Earnings per share
The Company’s basic and diluted earnings per share are calculated as follows:
Basic earnings per share:
Profit attributable to ordinary shareholders of the Company
Weighted-average number of outstanding ordinary shares (in
thousands)
2020
2019
$
9,361,893
6,955,899
4,357,130
4,357,130
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
51
Diluted earnings per share:
Profit attributable to ordinary shareholders of the Company (after
adjustment of potential diluted ordinary shares)
$
9,361,893
6,955,899
Weighted-average number of outstanding ordinary shares of
potential diluted ordinary shares
Weighted-average number of outstanding ordinary shares (in
thousands)
Effect of potential diluted common stock
Employee compensation (in thousands)
Weighted-average number of ordinary shares (after adjustment of
4,357,130
4,357,130
57,482
49,860
potential diluted ordinary shares) (in thousands)
4,414,612
4,406,990
(r) Revenue from contracts with customers
(i) Disaggregation of revenue
Primary geographical markets:
United states
China
Netherlands
United Kingdom
Others
Major products：
5C related electronic products
Others
(ii) Contract balance
2020
IT Product
Segment
$ 438,228,844
2019
IT Product
Segment
376,228,186
120,250,527
90,543,393
83,664,387
98,084,239
45,763,811
43,940,021
303,371,701
307,484,189
$ 991,279,270
916,280,028
$ 990,202,030
915,421,296
1,077,240
858,732
$ 991,279,270
916,280,028
Notes and accounts receivable (including
related parties)
Less: allowance for impairment
Total
Contract liabilities
December
31, 2020
$ 233,054,851
December
31, 2019
181,654,052
January 1,
2019
194,553,384
(3,634,794)
$ 229,420,057
828,978
$
(3,634,190)
178,019,862
877,822
(3,718,560)
190,834,824
1,405,452
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
52
For the details on accounts receivable and allowance for impairment, please refer to note (6)(d).
The amounts of revenue recognized for the years ended December 31, 2020 and 2019 that was
included in the balances of contract liability at the beginning of the period were $877,822 and
$1,405,452, respectively.
The major change in the balance of contract assets and contract liabilities is the difference
between the time frame in the performance obligation to be satisfied and the payment to be
received.
(s) Employees’ and directors’ compensations
Based on the Company’s articles of incorporation, if there is any profit in a fiscal year, the
Company’s pre-tax profits in such fiscal year, prior to deduction of compensations to employees and
directors, shall be distributed to employees as compensations in an amount of not less than two
percent (2%) thereof and to directors as compensations in an amount of not more than two percent
(2%) of such profits. In the event that the Company has accumulated losses, the Company shall
reserve an amount to offset accumulated losses. The compensations to employees as mentioned
above may be distributed in the form of stock or cash. Employees entitled to receive the said stock or
cash may include the employees of the Company’s subordinate companies pursuant to the Company
Act (Employees entitled to receive the said stock or cash may include the employees of the
Company’s subordinate companies who meet certain conditions after the Company’s articles of
incorporation amended on June 21, 2019).
The Company accrued and recognized its employee compensation of $974,694 and $731,322,
respectively, and directors’ compensation of $51,541 and $38,672 for the years ended December 31,
2020 and 2019, respectively. The estimated amounts mentioned above are based on the net profit
before tax without the compensations to employees and directors of each respective ending period,
multiplied by the percentage of the compensation to employees and directors, which was approved
by the management. The estimations are recorded under operating expenses and cost. The differences
between the amounts estimated and recognized in the financial statements, if any, are accounted for
as changes in accounting estimates and recognized as profit or loss in the distribution year. If the
Board of Directors approve to distribute employee compensation in the form of stock, the number of
the shares of the employee compensation is based on the closing price of the day before the Board of
Directors’ meeting, the related information can be accessed through the Market Observation Post
System website. There is no difference between the amount approved in the Board of Directors’
meeting and those recognized in the financial statements in 2020 and 2019.
There is no differences between the amount estimated and recognized in the financial statements in
2019. The related information can be accessed through the Market observation Post System website.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
53
(t) Non-operating income and expenses
(i)
Interest income
The interest income for the years ended December 31, 2020 and 2019, were as follows:
Interest income from bank deposits
Interest income from financial assets measured at
amortized cost
Other interest income
2020
2019
80,823
141,195
-
46,059
126,882
2,992
40,420
184,607
$
$
(ii) Other income
The other income for the years ended December 31, 2020 and 2019, were as follows:
Dividend revenue
Sale of expensed assets
Other revenue
(iii) Other gains and losses
2020
2019
56,780
85,268
216,622
358,670
71,778
275,412
122,042
469,232
$
The other gains and losses for the years ended December 31, 2020 and 2019, were as follows:
Gains on disposal of investments
Gains (losses) on financial assets and liabilities at fair
value through profit or loss, net
Foreign currency exchange gains (losses), net
Others
2020
2019
3,914
8,990
(9,013)
604,339
72
599,312
55,140
(484,552)
(501)
(420,923)
$
$
(u) Financial instruments
(i) Credit risk
1)
The carrying amount of financial assets represents the maximum amount exposed to
credit risk.
The Company’s customers are mainly from the high-tech industry. The Company does
not concentrate on a specific customer and the sales regions are widely spread, thus there
should be no concern on the significant concentrations of accounts receivable credit risk.
And in order to mitigate accounts receivable credit risk, the Company constantly assesses
the financial status of the customers.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
54
2) Receivables and debt securities
For information of exposure to credit risk of notes and accounts receivable, please refer to
note (6)(d).
Other financial assets at amortized cost includes other receivables and time deposits.
These financial assets are considered to have low risk, and thus, the impairment provision
recognized during the period was limited to 12 months expected losses (Regarding how
the financial instruments are considered to have low credit risk, please refer to note (4)(f)).
Due to the counter parties and the performing parties of the Company’s time deposits are
financial institutions with investment grade and above, these time deposits are considered
to have low credit risk.
(ii) Liquidity risk
The following table shows the contractual maturities of financial liabilities. Except for lease
liabilities, the amounts exclude estimated interest payments.
Carrying
Amount
Contractual
cash flows Within 1 year 1 ~ 2 years Over 2 years
December 31, 2020
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities—current
$
75,097,120
(64,847,120)
(75,097,120)
188,627,673 (188,627,673) (188,627,673)
(9,229,539)
(9,229,539)
9,229,539
and non-current
1,298,528
(217,649)
$ 274,252,860 (274,301,906) (262,921,981)
(1,347,574)
December 31, 2019
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities—current
$
65,013,800
(57,513,800)
(65,013,800)
149,064,159 (149,064,159) (149,064,159)
(9,390,399)
(9,390,399)
9,390,399
and non-current
1,398,432
(402,010)
$ 224,866,790 (224,912,575) (216,370,368)
(1,444,217)
(5,125,000)
(5,125,000)
-
-
-
-
(348,353)
(5,473,353)
(781,572)
(5,906,572)
(1,925,000)
(5,575,000)
-
-
-
-
(306,979)
(2,231,979)
(735,228)
(6,310,228)
The Company is not expecting that the cash flows included in the maturity analysis could occur
significantly earlier or at significantly different amounts.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
55
(iii) Currency risk
1)
Exposure to foreign currency risk
The Company’s significant exposure to foreign currency risk was as follows:
Foreign
currency
December 31, 2020
Exchange
rate
TWD
Foreign
currency
December 31, 2019
Exchange
rate
TWD
Financial assets
Monetary items
USD to TWD
Non-monetary items
THB to TWD
Financial liabilities
Monetary items
USD to TWD
2)
Sensitivity analysis
$ 8,521,135
28.48 242,681,925 6,580,212
29.98 197,274,756
516,989
0.9502
491,243
446,859
1.0028
448,110
9,056,682
28.48 257,934,303 6,021,076
29.98 180,511,858
The Company’s exposure to foreign currency risk arises from the translation of the
foreign currency exchange gains and losses on cash and cash equivalents, accounts
receivable, other receivables, loans and borrowings, accounts payable, and other payables
that are denominated in foreign currency. Assuming all other variable factors remain
constant, a strengthening (weakening) 5% of appreciation (depreciation) of the each
major foreign currency against the Company’s functional currency as of December 31,
2020 and 2019, would have increased (decreased) the net profit before tax as follows.
The analysis is performed on the same basis for both periods.
USD (against the TWD)
Strengthening 5%
Weakening 5%
3)
Exchange gains and losses of monetary items
December
31, 2020
December
31, 2019
$
(762,619)
838,145
762,619
(838,145)
As the Company deals with diverse foreign currencies, gains or losses on foreign
exchange were summarized as a single amount. For the years ended December 31, 2020
and 2019, the foreign exchange losses, including both realized and unrealized, amounted
to $604,339 and $(484,552), respectively.
(iv) Interest rate analysis
The interest risk exposure from financial assets and liabilities has been disclosed in the note of
liquidity risk management.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
56
The following sensitivity analysis is based on the risk exposure to interest rate on the derivative
and non-derivative financial instruments on the reporting date. Regarding the assets and
liabilities with variable interest rates, the analysis is on the basis of the assumption that the
amount of assets and liabilities outstanding at the reporting date were outstanding throughout
the year. The rate of change is expressed as the interest rate increase or decrease by 0.25%,
when reporting to management internally, which also represents the assessment of the
Company’s management for the reasonably possible interval of interest rate change.
Assuming all other variable factors remaining constant, if the interest rate had increased or
decreased by 0.25%, the impact to the net profit before tax would be as follows for the years
ended December 31, 2020 and 2019, which would be mainly resulted from the bank savings
and borrowings with variable interest rates.
Interest increased by 0.25%
Interest decreased by 0.25%
(v) Fair value information
2020
2019
$
(5,566)
(30,454)
5,566
30,454
1)
The categories and fair value of financial instruments
The Company’s financial assets and liabilities at fair value through profit or loss and
financial assets at fair value through other comprehensive income were measured at fair
value on a recurring basis. The following table shows the carrying amounts and fair
values of financial assets and financial liabilities, including their levels in the fair value
hierarchy. It shall not include fair value information of the financial assets and financial
liabilities not measured at fair value if the carrying amount is a reasonable approximation
of fair value and investments in equity instruments which do not have any quoted price in
an active market in which the fair value cannot be reasonably measured.
December 31, 2020
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit
or loss–current and non-current
Non-derivative financial assets
mandatorily measured at fair value
through profit or loss
Financial assets at fair value through
other comprehensive income
Stocks listed on domestic markets
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
$
158,769
-
1,520,779
1,520,779
491,243
801,238
67,861
38,331,299
41,212,420
491,243
-
-
-
-
-
-
-
-
158,769
158,769
-
-
801,238
67,861
1,520,779
491,243
801,238
67,861
38,331,299
-
38,331,299
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
57
December 31, 2020
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial assets measured at amortized
cost
Cash and cash equivalents
Notes and accounts receivable, net
Notes and accounts receivable due from
related parties, net
Other receivables
Guarantee deposits
Subtotal
Total
Financial liabilities measured at
amortized cost
Short-term borrowings
Notes and accounts payable
Notes and accounts payable to related
parties
Other payables
Lease liabilities–current and non-current
Long-term borrowings current portion
Long-term borrowings
Deposits received
Total
7,666,366
179,960,878
11,127,880
2,846,497
136,119
201,737,740
$ 243,108,929
$ 55,991,680
100,825,221
87,802,452
9,229,539
1,298,528
8,855,440
10,250,000
220
$ 274,253,080
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
December 31, 2019
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit
or loss–current and non-current
Non-derivative financial assets
mandatorily measured at fair value
through profit or loss
Financial assets at fair value through
other comprehensive income
Stocks listed on domestic markets
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
$
220,985
-
149,888
71,097
220,985
1,614,565
1,614,565
448,110
914,507
42,211
27,170,468
30,189,861
448,110
-
-
-
-
-
-
-
-
-
914,507
42,211
1,614,565
448,110
914,507
42,211
27,170,468
-
27,170,468
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
58
December 31, 2019
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial assets measured at amortized
cost
Cash and cash equivalents
Notes and accounts receivable, net
13,459,969
149,797,263
Notes and accounts receivable due from
related parties, net
Other receivables
Guarantee deposits
Subtotal
Total
Financial liabilities measured at
amortized cost
Short-term borrowings
Notes and accounts payable
Notes and accounts payable to related
parties
Other payables
Lease liabilities–current and non-current
Long-term borrowings current portion
Long-term borrowings
Deposits received
Total
1,052,131
3,110,607
126,605
167,546,575
$ 197,957,421
$ 39,363,800
74,138,921
74,925,238
9,390,399
1,398,432
18,150,000
7,500,000
220
$ 224,867,010
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2)
Fair value valuation technique of financial instruments not measured at fair value
The Company estimates financial instruments that not measured at fair value by methods
and assumption as follows:
a)
Financial assets measured at amortized cost and financial liabilities measured at
amortized cost
If there is quoted price generated by transactions, the recent transaction price and
quoted price data is used as the basis for fair value measurement. However, if no
quoted prices are available, the discounted cash flows are used to estimate fair
values.
3) Fair value valuation technique of financial instruments measured at fair value
a) Non-derivative financial instruments
Financial instruments trade in active markets is based on quoted market prices. The
quoted price of a financial instrument obtained from main exchanges and
on-the-run bonds from Taipei Exchange can be used as a base to determine the fair
value of the listed companies’ equity instrument and debt instrument of the quoted
price in an active market.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
59
If a quoted price of a financial instrument can be obtained in time and often from
exchanges, brokers, underwriters, industrial union, pricing institute, or authorities
and such price can reflect those actual trading and frequently happen in the market,
then the financial instrument is considered to have a quoted price in an active
market. If a financial instrument is not in accord with the definition mentioned
above, then it is considered to be without a quoted price in an active market. In
general, market with low trading volume or high bid-ask spreads is an indication of
a non-active market.
The fair value of the listed company is determined by reference to the market
quotation.
The measurements on fair value of the financial instruments without an active
market are determined using the valuation technique or the quoted market price of
its competitors. Fair value measured using the valuation technique can be
extrapolated from similar financial instruments, discounted cash flow method, or
other valuation techniques which include the model used in calculating the
observable market data at the balance sheet date.
The measurement of fair value of a non-active market financial instruments held by
the Company which do not have quoted market prices are based on the comparable
market approach, with the use of key assumptions of price-book ratio multiple or
earnings multiple of comparable listed companies as its basic measurement. These
assumptions have been adjusted for the effect of discount without the marketability
of the equity securities.
b) Derivative financial instruments
Measurement of the fair value of derivative instruments is based on the valuation
techniques that are generally accepted by the market participants. For instance,
discount method or option pricing models. Fair value of forward currency exchange
is usually determined by using the forward currency rate.
4) Transfer from one level to another
There was no transfer form one level to another in the year ended December 31, 2020.
The Company held an investment in equity of Crystalvue Medical Corporation
(“Crystalvue”). The investment was categorized as level 3 as of December 31, 2018,
because the shares were not listed on the exchange market and was measured by
significant unobservable inputs. In December 2019, Crystalvue’s shares were listed on
the exchange market, wherein they are actively traded. Currently, the equity shares have
quoted market price in an active market; therefore, the category was transferred from
level 3 to level 1 as of December 31, 2019.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
60
5) Changes in level 3
The change in level 3 at fair value in the years ended December 31, 2020 and 2019, were
as follow:
Financial assets at
fair value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Total
Balance on January 1, 2020
$
71,097
956,718
1,027,815
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds of capital reduction of investment
Balance on December 31, 2020
Balance on January 1, 2019
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds of capital reduction of investment
Transferred out from level 3
$
$
10,997
-
76,675
158,769
23,745
(8,244)
-
55,596
-
-
-
-
-
-
-
Balance on December 31, 2019
$
71,097
(65,813)
7,578
(25,156)
(4,228)
869,099
947,758
18,468
19,396
(791)
(7,615)
(20,498)
956,718
10,997
(65,813)
84,253
(25,156)
(4,228)
1,027,868
971,503
(8,244)
18,468
74,992
(791)
(7,615)
(20,498)
1,027,815
For the years ended December 31, 2020 and 2019, total gains and losses that were
included in“other gains and losses, net”and“unrealized gains and losses from equity
instruments at fair value through other comprehensive income”,respectively, were as
follows:
Total gains and losses recognized:
In profit or loss (as“other gains and losses, net”)
$
10,997
(8,244)
In other comprehensive income (as“unrealized gains
and losses from equity instruments at fair value
through other comprehensive income”)
$
(46,709)
17,677
2020
2019
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
61
6) The quantified information for significant unobservable inputs (level 3) used in fair value
measurement
The Company’s financial instruments that use level 3 input to measure fair values include
financial assets at fair value through other comprehensive income and financial assets at
fair value through profit or loss.
Most of fair value measurements of the Company which are categorized as equity
investment into level 3 have several significant unobservable inputs. Significant
unobservable inputs of equity investments without quoted price are independent of each
other.
The quantified information for significant unobservable inputs was as follows:
Item
Financial assets at fair
value through other
comprehensive
income － equity
investment without an
active market
Valuation
technique
Comparable
market approach
(Price-Book ratio
method and
Earnings
multiplier
method)
Inter-relationships
between significant
unobservable inputs
and fair value
The higher the
multiple is, the
higher the fair value
will be.
The higher the
multiple is, the
higher the fair value
will be.
The higher the
Lack-of-Marketabilit
y discount rate is,
the lower the fair
value will be.
Significant
unobservable inputs
Price-Book ratio
multiples (1.72~7.9 and
1.4~5.64, respectively,
on December 31, 2020
and 2019)
Multiples of earnings
(3.12~11.24, on
December 31, 2019)
Lack-of-Marketability
discount rate
(35%~85%, and
35%~85%,
respectively, on
December 31, 2020 and
2019)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
62
Item
Financial assets at fair
value through other
comprehensive
income
Financial assets at fair
value through profit or
loss
Valuation
technique
Net asset value
method
Net asset value
method
Significant
unobservable inputs
Net asset value
Inter-relationships
between significant
unobservable inputs
and fair value
Inapplicable
Net asset value
Inapplicable
7) Sensitivity analysis for fair value of financial instruments using level 3 inputs
The Company’s fair value measurement on financial instruments is reasonable. However,
the measurement would be different if different valuation models or valuation parameters
are used. For financial instruments using level 3 inputs, if the valuation parameters
changed, the impact on other comprehensive income or loss are as follows:
December 31, 2020
Financial assets at
fair value through
other comprehensive
income
December 31, 2019
Financial assets at
fair value through
other comprehensive
income
Input
Price-Book ratio
multiples
Lack-of-Marketability
discount rate
Price-Book ratio
multiples
Multiples of earnings
Lack-of-Marketability
discount rate
Move up
or down
Other comprehensive income
Unfavorable
change
Favorable
change
5%
$
35,945
35,279
5%
$
4,523
4,567
5%
$
25,552
24,531
5%
5%
$
$
14,707
6,589
12,746
6,548
The favorable and unfavorable changes reflect the movement of the fair value, in which
the fair value is calculated by using the different unobservable inputs in the valuation
technique. The table above shows the effects of one unobservable input, without
considering the inter-relationships with another unobservable input for financial
instrument, if there are one or more unobservable inputs.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
63
(v) Financial risk management
(i) Overview
The Company is exposed to the following risks arising from financial instruments:
1) Credit risk
2) Liquidity risk
3) Market risk
In this note expressed the information on risk exposure and objectives, policies and procedures
of risk measurement and management of the Company. For detailed information, please refer to
the related notes of each risk.
(ii) Structure of risk management
The Company’s finance management department provides business services for the overall
internal department. It sets the objectives, policies and processes for managing the risk and the
methods used to measure the risk arising from both the domestic and international financial
market operations.
The Company minimizes the risk exposure through derivative financial instruments. The Board
of Directors regulated the use of derivative financial instruments in accordance with the
Company’s policy about risks arising from financial instruments such as currency risk, interest
rate risk, credit risk, the use of derivative and non-derivative financial instruments and the
investments of excess liquidity. The internal auditors of the Company continue with the review
of the amount of the risk exposure in accordance with the Company’s policies and the risk
management policies and procedures. The Company has no transactions in financial
instruments (including derivative financial instruments) for the purpose of speculation.
(iii) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations, and arises principally from the
Company’s receivables from customers and investment securities.
1) Accounts receivable and other receivables
The Company has established a credit policy under which each new customer is analyzed
individually for creditworthiness before the Company’s standard payment and delivery
terms and conditions are offered. The Company’s review includes external ratings,
when available, and in some cases bank references. Purchase limits are established for
each customer, and these limits are reviewed periodically.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
64
2)
Investments
The credit risks exposure in the bank deposits, investments with fixed income and other
financial instruments are measured and monitored by the Company’s finance department.
Since the Company’s
transaction counterparties and the contractually obligated
counterparties are banks, financial institutes and corporate organizations with good
credits, there are no compliance issues, and therefore, no significant credit risk.
3) Guarantees
Pursuant to the Company’s policies, it is only permissible to provide financial guarantees
to subsidiaries and companies that the Company has business with. As of December 31,
2020 and 2019, the guarantees provide to the subsidiaries amounted to $214,797 and
$255,662, respectively.
(iv) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities which be settled by delivering cash or another financial
asset.
The Company manages and maintains sufficient cash and cash equivalents so as to cope with
its operations and mitigate the effects of fluctuations in cash flows. The Company’s
management supervises the banking facilities and ensures in compliance with the terms of the
loan agreements. Please refer to notes (6)(k) and (6)(l) for unused credit lines of short-term and
long-term borrowings as of December 31, 2020 and 2019.
(v) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest
rates and equity prices which will affect the Company’s income or the value of its holdings of
financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimizing the return.
1) Currency risk
The Company is exposed to currency risk on sales, purchases and borrowings that are
denominated in a currency other than the functional currency of the Company, primarily
USD.
As for other monetary assets and liabilities denominated in other foreign currencies, when
short-term imbalance takes place, the Company buys or sells foreign currencies at spot
rate to ensure that the net exposure is kept on an acceptable level.
2)
Interest rate risk
The Company borrows funds on fixed and variable interest rates, which has a risk
exposure to changes in fair value and cash flow. Therefore, the Company manages the
interest rates risk by maintaining an adequate combination of fixed and variable interest
rates.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
65
3) Other price risk
The Company is exposed to equity price risk arising from investments in listed equity
securities.
(w) Capital management
The policy of capital management made by the Board of Directors is to maintain a strong capital base
so as to stabilize the confidence of the investors, creditors and the public market and to sustain future
development of the business. Capital consists of ordinary shares, capital surplus and retained
earnings. The Board of Directors monitors the return on capital as well as the level of dividends to
ordinary shareholders.
The Company monitors the capital structure by way of periodical review the debt ratio. As of
December 31, 2020 and 2019, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December 31,
2020
$ 282,118,646
December 31,
2019
231,810,855
$ 388,951,151
337,783,488
73 %
69 %
The Company could purchase its own shares in the public market in accordance with the
corresponding rules and regulations. The timing of the purchases depends on market prices.
As of December 31, 2020, there were no changes in the Company’s approach of capital management.
(x)
Investing and financing activities not affecting current cash flow
The Company’s investing and financing activities which did not affect the current cash flow in the
years ended December 31, 2020 and 2019 were acquisition of right-of-use assets by leasing, please
refer to note (6)(j).
Reconciliation of liabilities arising from financial activities was as follows:
Short-term borrowings
Long-term borrowings
Lease liabilities
Guarantee deposits
Total liabilities from financing
activities
January 1,
2020
39,363,800
25,650,000
1,398,432
220
66,412,452
$
$
Other
non-cash
changes
-
-
371,189
-
371,189
December
31, 2020
55,991,680
19,105,440
1,298,528
220
76,395,868
Cash flow
16,627,880
(6,544,560)
(471,093)
-
9,612,227
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
66
Long-term borrowings
Short-term borrowings
Lease liabilities
Guarantee deposits
Total liabilities from financing
activities
January 1,
2019
51,305,682
28,396,250
821,816
266
80,524,014
$
$
Other
non-cash
changes
-
-
991,472
-
991,472
December
31, 2019
39,363,800
25,650,000
1,398,432
220
66,412,452
Cash flow
(11,941,882)
(2,746,250)
(414,856)
(46)
(15,103,034)
(7) Related-party transactions:
(a) Name and relationship with related parties
The following are entities that had transactions with related party during the periods covered in the
parent-company-only financial statements.
Name of related party
Panpal Technology Corp. (“Panpal”)
Gempal Technology Corp. (“Gempal”)
Hong Ji Capital Co., Ltd. (“Hong Ji”)
Hong Jin Investment Co., Ltd. (“Hong Jin”)
Accesstek, Inc. (“ATK”)
Arcadyan
Rayonnant Technology Co., Ltd. (“Rayonnant Technology”)
HengHao Technology Co., Ltd. (“HengHao”)
Ripal Optortronics Co., Ltd. (“Ripal”)
Auscom Engineering Inc. (“Auscom”)
Just International Ltd. (“Just”)
Compal International Holding Co., Ltd. (“CIH”)
Compal Electronics (Holding) Ltd. (“CEH”)
Bizcom Electronics, Inc. (“Bizcom”)
Flight Global Holding Inc. (“FGH”)
High Shine Industrial Corp. (“HSI”)
Compal Europe (Poland) Sp. z o.o. (“CEP”)
Big Chance International Co., Ltd. (“BCI”)
Compal Rayonnant Holdings Limited (“CRH”)
Relationship with the
Company
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
67
Name of related party
Core Profit Holdings Limited (“CORE”)
Compalead Electronics B.V. (“CPE”)
Relationship with the
Company
The Company’s subsidiary
The Company’s subsidiary
Compalead Eletronica do Brasil Industria e Comercio Ltda. (“CEB”)
The Company’s subsidiary
Compal Display Holding (HK) Limited (“CDH (HK)”)
Compal Electronics International Ltd. (“CII”)
Compal International Ltd. (“CPI”)
Compal Electronics (China) Co., Ltd. (“CPC”)
Compal Optoelectronics (Kunshan) Co., Ltd. (“CPO”)
Compal System Trading (Kunshan) Co., Ltd. (“CST”)
Smart International Trading Ltd. (“Smart”)
Amexcom Electronics Inc. (“AEI”)
Mexcom Electronics, LLC (“MEL”)
Mexcom Technologies, LLC (“MTL”)
CENA Electromex, S.A. de C.V. (“CMX”) (Note)
Compal International Holding (HK) Limited (“CIH (HK)”)
Jenpal International Ltd. (“Jenpal”)
Prospect Fortune Group Ltd. (“PFG”)
Compal Electronics Technology (Kunshan) Co., Ltd. (“CET”)
Compal Information (Kunshan) Co., Ltd. (“CIC”)
Compal Information Technology (Kunshan) Co., Ltd. (“CIT”)
Kunshan Botai Electronics Co., Ltd. (“BT”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Compal Information Research and Development (Nanjing) Co., Ltd. (“CIN”) The Company’s subsidiary
Compal Digital Technology (Kunshan) Co., Ltd. (“CDT”)
Compower Global Service Co., Ltd. (“CGS”)
Compal Investment (Jiansu) Co., Ltd. (“CIJ”)
Compal Display Electronics (Kunshan) Co., Ltd. (“CDE”)
Etrade Management Co., Ltd. (“Etrade”)
Webtek Technology Co., Ltd. (“Webtek”)
Forever Young Technology Inc. (“Forever”)
Unicom Global, Inc. (“UCGI”)
Palcom International Corporation (“Palcom”)
Compal Communication (Nanjing) Co., ltd. (“CCI Nanjing”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
68
Compal Digital Communication (Nanjing) Co., Ltd. (“CDCN”)
Name of related party
Relationship with the
Company
The Company’s subsidiary
Compal Wireless Communication (Nanjing) Co., Ltd. (“CWCN”)
The Company’s subsidiary
Hanhelt Communication (Nanjing) Co., Ltd. (“Hanhelt”)
Giant Rank Trading Ltd. (“GIA”)
OptoRite Inc.
MSI-ATK Otpics Holding Corporation (“MSI-ATK”)
Maitek (BVI) Corporation (“Maitek”)
Arcadyan Technology N.A. Corp. (“Arcadyan USA”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Arcadyan Germany Technology GmbH (“Arcadyan Germany”)
The Company’s subsidiary
Arcadyan Technology Corporation Korea (“Arcadyan Korea”)
Arcadyan Holding (BVI) Corp. (“Arcadyan Holding”)
Arcadyan do Brasil Ltda. (“Arcadyan Brasil”)
Arcadyan Technology Limited (“Arcadyan UK”)
Arcadyan Technology Australia Pty Ltd. (“Arcadyan AU”)
Zhi-Bao Technology Inc. (“Zhi-Bao”)
Tatung Technology Inc. (“TTI”)
AcBel Telecom Inc. (“AcBel Telecom”)
CBN
Speedlink Tradings Limited (“Speedlink”)
Compal Broadband Networks Belgium BVBA (“CBNB”)
Compal Broadband Networks Netherlands B.V. (“CBNN”)
Sinoprime Global Inc. (“Sinoprime”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Arcadyan Technology (Vietnam) Co., Ltd. (“Arcadyan Vietnam”)
The Company’s subsidiary
Arcadyan Technology (Shanghai) corp. (“SVA Arcadyan”)
Arch Holding (BVI) Corp. (“Arch Holding”)
Compal Networking (Kunshan) Co., Ltd. (“CNC”)
Leading Images Ltd. (“Leading Images”)
Astoria Networks GmbH (“Astoria GmbH”)
Quest International Group Co., Ltd. (“Quest”)
Exquisite Electronic Co., Ltd. (“Exquisite”)
Tatung Home Appliances (Wujiang) Co., Ltd. (“THAC”)
Tatung Technology of Japan Co., Ltd. (“TTJC”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
69
Intelligent Universal Enterprise Ltd. (“IUE”)
Name of related party
Goal Reach Enterprises Ltd. (“Goal”)
Compal (Vietnam) Co., Ltd. (“CVC”)
Relationship with the
Company
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Compal Development &Management (Vietnam) Co., Ltd. (“CDM”)
The Company’s subsidiary
Allied Power Holding Corp. (“APH”)
Primetek Enterprises Limited (“PEL”)
The Company’s subsidiary
The Company’s subsidiary
Rayonnant Technology (HK) Co., Ltd. (“Rayonnant Technology (HK)”)
The Company’s subsidiary
Royonnant Technology (Taicang) Co., Ltd. (“Rayonnant Technology
The Company’s subsidiary
(Taicang)”)
HengHao Holdings A Co., Ltd. (“HHA”)
HengHao Holdings B Co., Ltd. (“HHB”)
HengHao Trading Co., Ltd.
HengHao Optoelectronics Technology (Kunshan) Co., Ltd.
LUCOM Display Technology (Kunshan) Limited (“Lucom”)
Center Mind International Co., Ltd. (“CMI”)
Prisco International Co., Ltd. (“PRI”)
Compal Electronic (Sichuan) Co., Ltd. (“CIS”)
Compal Electronic (Chongqing) Co., Ltd. (“CEQ”)
Compal Electronic (Chengdu) Co., Ltd. (“CEC”)
Compal Management (Chengdu) Co., Ltd. (“CMC”)
Compal Smart Device (Chongqing) Co., Ltd. (“CSD”)
Billion Sea Holdings Limited (“BSH”)
Mithera Capital Io LP (“Mithera”)
Fortune Way Technology Corp. (“FWT”)
General Life Biotechnology Co., Ltd. (“GLB”)
Mactech Co., Ltd. (“Mactech”)
Rapha Bio Ltd. (“Rapha”)
Compal Electronics India Private Limited (“CEIN”)
Shennona Corporation (“Shennona”)
Unicore BioMedical Co., Ltd. (“Unicore”)
Raycore Biotech Co., Ltd. (“Raycore”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
70
Hippo Screen Neurotech Co., Ltd. (“Hippo Screen”)
Name of related party
Shennona Co., Ltd. (“Shennona TW”)
Aco Smartcare Co., Ltd. (“Aco Smartcare”)
Compal Electronica DA Amazonia LTDA (“CEA”)
Compal Wise Electronic (Vietnam) Co., Ltd. (“CWV”)
Arcadyan Technology Corporation (Russia), LLC. (“Arcadyan RU”)
CGS Technology (Poland) Sp. z o.o. (“CGSP”)
AcBel Polytech Inc. (AcBel) and its subsidiaries (“AcBel”)
Cal-Comp Electronics & Communications Company Limited (“Cal-Comp”)
Avalue
Crownpo Technology Inc. (“Crownpo”)
Kinpo Group Management Consultant Company (“Kinpo Group Management”)
Allied Circuit
LIZ Electronics (Kunshan) Co., Ltd. (“LIZ”)
Compal Precision Module (Jiangsu) Co., Ltd. (“CPM”)
Changbao Electronic Technology (Chongqing) Co., Ltd. (“Changbao”)
Hong Ya Technology Corporation (“Hong Ya Technology”)
Raypal Biomedical Co., Ltd. (“Raypal”)
ARCE Therapeutics Co., Ltd. (“ARCE”)
Compal Connector Manufacture Ltd. (“CCM”)
Relationship with the
Company
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The same Chairman of the
Board with the Company
The same Chairman of the
Board with the Company
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
A joint venture company
Note: Since the disposal of CMX in August 2019, CMX is no longer a subsidiary of the Company.
(b) Transactions with key management personnel
Key management personnel remunerations comprised:
Short-term employee benefits
Post-employment benefits
There are no termination benefits and other long-term benefits.
2020
2019
$
$
516,197
482,308
6,007
6,130
522,204
488,438
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
71
(c) Significant related-party transactions
(i)
Sale of goods to related parties
The amounts of significant sales transactions between the Company and related parties were as
follows:
Subsidiaries
Associates
Other related parties
2020
1,170,456
$
2019
1,432,433
190
179
476,501
-
$
1,647,147
1,432,612
Sales prices for related parties were similar to those of the third-party customers. The
collection period was 45~180 days for related parties.
(ii) Purchase of goods from related parties
The amounts of significant purchase transactions between the Company and related parties
were as follows:
Subsidiaries
CSD
Others
Associates
Other related parties
Joint venture
2020
2019
$ 145,525,596
219,732,381
365,257,977
2,859
41,802
-
$ 365,302,638
96,242,404
296,062,338
392,304,742
410
65,573
467
392,371,192
Purchase prices and payment period from related parties were similar to those from third-party
suppliers. The payment period was 60~120 days for related parties.
(iii) Product warranty service expenses
The product warranty service expenses paid to subsidiaries for the years ended December 31,
2020 and 2019, amounted to $255,349 and $292,959, respectively. As of December 31, 2020
and 2019, the unpaid warranty service expenses were record as other payables.
(iv) Technical service expense
The Company engaged its subsidiaries to research and develop of notebooks, and the related
technical service expenses for the years ended December 31, 2020 and 2019, amounted to
$198,315 and $170,657, respectively. As of December 31, 2020 and 2019, the unpaid technical
service expenses were recorded as other payables.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
72
(v) Receivables due from relate parties
The receivables arising from the transactions mentioned above, the sale of machinery and
equipment to related parties, and the purchasing of machinery, equipment and others on behalf
of the related parties as of December 31, 2020 and 2019, were as follows:
Account
Notes and accounts receivable
Notes and accounts receivable
Other receivables
Other receivables
Other receivables
Other receivables
Less: Credit balance of investments
accounted for using the equity
method
Related party
categories
Subsidiaries
Other related parties
Subsidiaries - UCGI
Subsidiaries - Others
Associates
Joint venture
$
December
31, 2020
10,820,424
307,456
506,229
15,176
907
64
11,650,256
December
31, 2019
1,052,131
-
581,199
27,155
-
62
1,660,547
(381,227)
$
11,269,029
(459,296)
1,201,251
As of December 31, 2020 and 2019, the Company’s investment accounted for using the equity
method in subsidiaries was a credit balance, recorded as a deduction from other receivable
(other receivables) – related party. Please refer to note (6)(g).
(vi) Payables to related parties
The payables to related parties as of December 31, 2020 and 2019, were as follows:
Account
Notes and accounts payable
Notes and accounts payable
Related party
categories
Subsidiaries - CIT
December
31, 2020
30,623,968
$
December
31, 2019
31,847,665
Subsidiaries - Others
57,161,436
43,055,746
Notes and accounts payable
Associates
166
259
Notes and accounts payable
Other payables
Other related parties
16,882
21,568
Subsidiaries
174,010
339,318
$
87,976,462
75,264,556
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
73
(vii) Loans to related parties
The interest rate of unsecured loans to subsidiaries was 1.08%~2.05%, and the Company had
assessed that no bad debt expenses should be recognized. As of December 31, 2020 and 2019,
the loans due to related parties were recorded as other receivables.
Account
Other receivables
Other receivables
Other receivables
Less: Credit balance of investments
accounted for using the equity
method
Related party
categories
December
31, 2020
December
31, 2019
Subsidiaries - CEB
$
Subsidiaries - HengHao
Subsidiaries - UCGI
1,424,000
1,499,000
200,000
200,000
220,000
220,000
(200,000)
(200,000)
$
1,644,000
1,719,000
As of December 31, 2020 and 2019, the Company’s investment accounted for using the equity
method in some subsidiaries was a credit balance, recorded as a deduction from other
receivables – related parties (classified as other receivables). Please refer to note (6)(g).
(viii) Guarantees
As of December 31, 2020 and 2019, the guarantees provided to subsidiaries were $214,797
and $255,662, respectively.
(8) Pledged assets: None.
(9) Commitments and contingencies:
The details of commitments and contingencies were as follows:
(a)
In August 2019, Inventec Corporation filed a lawsuit to the Taiwan Taipei District Prosecutors
Office against the Company concerning its former employees who joined the Company. This is
deemed as an act of violation according to the Trade Secret Law and Copyright Law. The Company
engaged lawyers to defend its right on this matter. Currently, the case is still in progress; therefore,
the Company cannot make any reasonable estimation regarding the possible impact on its business
operation.
(b) The Company entered into various patent license agreements with third parties, and was required to
make royalty payments of a predetermined amount periodically.
(10) Losses due to major disasters: None
(11) Subsequent events: None
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
74
(12) Other:
The employee benefits, depreciation and amortization expenses by categorized function are summarized as
follows:
By function
By item
Employee benefits
Salary
Operating
costs
2020
Operating
expenses
Total
Operating
costs
2019
Operating
expenses
Total
1,108,657
9,021,361 10,130,018
677,649
8,450,610
9,128,259
Labor and health insurance
Pension
81,056
27,718
Remuneration of directors
-
Others
Depreciation
Amortization
209,112
156,554
6,301
607,195
347,023
61,500
403,706
675,955
384,626
688,251
374,741
51,188
17,972
61,500
-
612,818
832,509
390,927
136,787
93,277
5,980
571,822
330,664
48,630
402,952
598,554
319,247
623,010
348,636
48,630
539,739
691,831
325,227
For the years ended December 31, 2020 and 2019, the information on the number of employees and
employee benefit expense of the Company is as follows:
Number of employees (Average salaries)
Number of directors (non-employees)
Average benefit expense of employees
Average salary expense of employees
Percentage of change in average salary expense of employees
Remuneration received by supervisors
2020
2019
8,633
11
1,369
1,175
7,682
11
1,387
1,190
(1.26)%
(4.11)%
-
-
$
$
$
Information about salary and compensation policies (including directors, managers and employees) of the
Company is as follows:
Directors’ remuneration is allocated according to the terms of the Articles of the Incorporation, and no
more than 2% of the Company’s pre-tax profit in the fiscal year, excluding employees’ and directors’
compensations, shall be paid to directors as remuneration along with reasonable compensation based on
other factors to be taken into consideration, such as the Company’s operational performance and the
individual directors’ contribution to the Company’s performance.
Remuneration of the independent directors’ of the Company is allocated according to the terms of the
Articles of the Incorporation, as well as the involvement level in the corporate operation, contribution
value, responsibility that is taken, risk that is borne by the independent directors and reference of
competitors from the same industry. The remuneration is proposed by the Remuneration Committee and
resolved by the Board of Directors.
The Company’s remuneration policy for managers has been established based on various factors including
the Company’s wage policy, the average wage offered by competitors for the same position, the duties and
responsibilities for the position in question, and the manager’s actual contribution to the Company’s
operational objectives.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
75
The Company’s procedure for determining remuneration takes into account the Company’s overall
operational performance as well as includes employee’s personal performance and their contribution to the
Company’s performance in order to determine a reasonable compensation. Relevant salaries and
compensations are reviewed by the Remuneration Committee and resolved by the Board of Directors. The
Company will frequently examine the latest developments in the global economy, international financial
environment, and change of the industry condition in order to predict its operational development, profit
status, operational risks and changes in pertinent regulations in the near future in order to review the
compensation system, thereby reach a balance between the Company’s sustainable operation and relevant
risk control.
(13) Other disclosures:
(a)
Information on significant transactions
The following were the information on significant transactions required by the“Regulations
Governing the Preparation of Financial Reports by Securities Issuers”for the Company for the year
ended December 31, 2020:
(i) Loans to other parties: Please refer to Table 1
(ii) Guarantees and endorsements for other parties: Please refer to Table 2
(iii) Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and
joint ventures): Please refer to Table 3
(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of
NT$300 million or 20% of the capital stock: Please refer to Table 4
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or
20% of the capital stock: Please refer to Table 5
(vi) Disposals of individual real estate with amount exceeding the lower of NT$300 million or 20%
of the capital stock: None
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of
NT$100 million or 20% of the capital stock: Please refer to Table 6
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 7
(ix) Trading in derivative instruments: None.
(b)
Information on investees: Please refer to Table 8
(c)
Information on investment in mainland China: Please refer to Table 9
(d) Major shareholders: There were no shareholders holding more than 5% shares.
(14) Segment information:
Please refer to the consolidated financial report of 2020.
(Continued)
76
Amount
$
1,700
265,111
7,312,957
7,578,068
76,598
COMPAL ELECTRONICS, INC.
Statement of cash and cash equivalents
December 31, 2020
(Expressed in thousands of New Taiwan Dollars;
in dollars of Foreign Currency)
Item
Cash on hand
Checking account and
TWD
demand deposits
Description
Foreign currency (US$256,192,860 and others)
Time deposits
Foreign currency (CNY$17,500,000, Maturity date: 2021.1.8~
2021.3.15)
Cash equivalents:
Bonds purchased
under resale
agreements
TWD (Maturity date: 2021.1.7)
Total
10,000
$
7,666,366
Note: The exchange rate is 28.48 New Taiwan dollars for 1 US dollar; 4.377 New Taiwan dollars for 1 CNY
dollar.
(Continued)
77
COMPAL ELECTRONICS, INC.
Statement of notes and accounts receivable
December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Item
Description
Sales of non-related parties
Amount
126,299,231
$
D Company
E Company
A Company
C Company
B Company
Others (Note)
〃
〃
〃
〃
〃
26,254,007
18,158,410
13,675,832
13,074,071
24,465,420
221,926,971
(3,634,794)
$
218,292,177
Less: allowance for uncollectible accounts
Notes and accounts receivable, net
Note: The amount of individual client included in others does not exceed 5% of the account balance.
Statement of inventories
Item
Finished goods
Work in progress
Raw materials
Total
Net Realizable
Cost
11,718,417
$
Value
11,922,637
682,167
682,167
43,391,764
43,427,910
$
55,792,348
56,032,714
(Continued)
Statement of changes in accumulated impairment of investments accounted for using the equity method
COMPAL ELECTRONICS, INC.
For the year ended December 31, 2020
(Expressed in thousands of New Taiwan Dollars; thousands of shares)
Beginning Balance
Increase (Note 1)
Decrease (Note 2)
Ending Balance (including impairment loss)
78
Amount (not including
exchange differences on
transaction of foreign
Investee Company
Number of shares
financial statements
Auscom
Panpal
Just
CIH
CEH
Gempal
Hong Ji
Hong Jin
Maxima Ventures l, Inc.
ATK
Allied Circuit
Bizcom
LIPO
Crownpo
Arcadyan
FGH
HSI
Lead-Honor Optronics Co., Ltd.
CBN
Kinpo Group Management
Rayonnant Technology
CRH
HengHao
Infinno Technology Corp.
CEP
BCI
APE
CORE
Unicore
Ripal
CPE
Avalue
Etrade
Webtek
Forever
UCGI
Palcom
Mactech
GLB
Shennona
Hippo Screen
Shennona TW
Aco Smartcare
ARCE
CGSP
Raypal
Subtotal
3,000 $
500,000
48,010
53,001
1
90,000
100,000
29,500
126
899
10,158
100
98
3,739
41,305
89,755
42,700
2,772
29,060
300
29,500
12,500
20,015
5,650
136
90,820
31,253
147,000
20,000
6,000
6,427
15,024
46,900
100
50
10,000
10,000
21,756
15,000
2,600
4,200
600
100,000
-
-
-
-
-
-
Exchange differences on transaction of foreign
financial statements
Less: Treasury shares held by subsidiaries
Unrealized profits or losses
Subtotal
Plus: Deduction of accounts receivable and other
receivable－related parties
Plus: Credit balance of investment in equity method
Total
$
139,509
6,396,435
8,462,270
35,953,096
3,906,656
1,944,816
1,083,154
344,708
4,998
8,548
319,049
471,164
552,441
58,754
2,278,389
5,058,576
557,178
(3)
734,180
4,628
66,671
132,685
(469,615)
17,199
22,199
6,153,514
1,081,612
7,627,386
145,664
76,632
856,150
654,537
(481,001)
645,132
1,568,742
(459,297)
105,623
237,496
305,987
695
34,869
4,292
85,978
86,691,696
(3,927,334)
(881,247)
(3,516)
81,879,599
659,296
891,274
83,430,169
Number of
Share of profit
Number of
foreign financial
foreign financial
differences on transaction
Market Price /
Amount (not including
exchange differences
Exchange differences
Ending Balance
on transaction of
on transaction of
(including exchange
Number of shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000
20,000
3,446
Amount
-
38,272
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
123,166
119
165
695
1,482
550
200,000
2,819
99,999
206
60,000
37
155,076
682,586
682,586
shares
-
-
-
-
-
-
-
-
-
899
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,000
100
10,000
2,100
Amount
-
244,660
109,063
44,089
27,314
8,563
37,047
72
198,760
40,972
54,446
64,089
11,903
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
840,978
3,093,997
-
6,641
3,941,616
recognized
shares
statements
statements
of foreign statements
3,000
500,000
48,010
53,001
1
90,000
100,000
29,500
126
10,158
100
98
3,739
41,305
89,755
42,700
2,772
29,060
300
29,500
12,500
20,015
5,650
136
90,820
31,253
147,000
20,000
6,000
6,427
14,924
46,900
100
50
10,000
10,000
21,756
15,000
2,600
2,100
600
100,000
20,000
3,446
-
-
4,635
(28,650)
3,843
2,502,193
-
115,689
110,567
38,084
701
15
108,556
8,266
58,689
1,976
339,600
112,909
(162,171)
-
20,297
31
69,187
68,396
8,553
(4,182)
2,244
613,030
49,423
74,866
(20,381)
6,849
6,256
47,355
(162,840)
55,882
(53,455)
(21,929)
6,801
9,735
12,032
(84)
(17,920)
(1,519)
(12,414)
(148)
(37)
(4,025)
3,966,905
-
-
-
3,966,905
144,144
6,161,397
8,466,113
38,455,289
3,906,656
2,074,608
1,149,751
355,643
5,699
-
390,558
479,430
611,825
60,658
2,420,711
5,172,035
395,007
(3)
713,505
4,659
135,858
201,081
(261,062)
13,017
24,443
6,766,544
1,076,589
7,702,252
125,283
83,481
862,406
640,622
(643,841)
701,014
1,515,287
(381,227)
112,424
235,534
318,019
611
16,949
2,773
73,564
59,852
-
151,051
90,500,209
(7,021,331)
(881,247)
(10,157)
82,587,474
(19,317)
(689,880)
(731,922)
(3,214,118)
(550,093)
(23,886)
(8,312)
(4,335)
(103)
(47,596)
(36,778)
(2,532)
(34,418)
(375,507)
(37,370)
3
52
(10,539)
(10,062)
(8,191)
(5,777)
(304,021)
(81,706)
(345,581)
(74,147)
(15,434)
(76,054)
(128,145)
(186,173)
611
(7,021,331)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
124,827
5,471,517
7,734,191
35,241,171
3,356,563
2,050,722
1,141,439
351,308
5,699
390,455
431,834
575,047
58,126
2,386,293
4,796,528
357,637
713,557
4,659
125,319
191,019
(269,253)
13,017
18,666
6,462,523
994,883
7,356,671
125,283
83,481
788,259
625,188
(719,895)
572,869
1,329,114
(381,227)
112,424
235,534
318,019
1,222
16,949
2,773
73,564
59,852
151,051
83,478,878
(881,247)
(10,157)
82,587,474
581,227
789,148
83,957,849
-
-
-
-
Net Value
124,827
5,555,384
7,734,191
35,228,323
3,356,563
2,102,475
1,141,439
351,308
5,121
-
1,229,085 (Note 4)
431,834
575,047
58,126
3,874,362 (Note 3)
4,796,528
1,411,398
-
932,832 (Note 3)
5,819
125,319
191,019
(269,253)
13,017
18,666
6,462,523
994,883
7,356,671
125,283
83,481
788,259
828,286 (Note 4)
(719,895)
572,869
1,329,114
(381,227)
112,424
235,534
207,631
1,222
4,475
2,773
45,751
59,852
-
151,051
Note 1：Increase in current period included purchasing long-term investments, adjusting by using equity method of capital surplus, unrealized gains from financial assets measured at fair value through other comprehensive income, and subsidiaries received cash dividends from the parent company.
Note 2：Decrease in current period included disposal of long-term investments, return of capital from liquidation, cash dividends distributed from long-term investments for using the equity method, adjustment by equity method of capital surplus and retained earnings, remeasurement of defined benefit plans, and unrealized loss from
financial assets measured at fair value through other comprehensive income.
Note 3：The unit price is calculated by the closing price of the Taiwan Stock Exchange as of December 31, 2020.
Note 4：The unit price is calculated by the closing price of Taipei Exchange as of December 31, 2020.
(Continued)
79
COMPAL ELECTRONICS, INC.
Statement of financial assets measured at fair value through other
comprehensive income - non-current
For the year ended December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Beginning Balance
Increase (Note 1)
Decrease (Note 2)
Ending Balance
Number of
Number of
Number of
Number of
Collaterals
or Pledged
Investee Company
Shares
Amount
124,044 $ 1,593,962
Shares
-
Amount
-
Shares
-
Amount
Shares
Amount
86,830
124,044
1,507,132
Assets
None
Kinpo
Cal-Comp Electronics (Thailand) Public Co., Ltd.
Taiwan Star
Others
239,631
448,110
98,046
680,442
-
296,879
-
-
-
43,133
5,883
30,278
-
-
-
-
-
239,631
491,243
None
98,046
686,325
None
130,736
-
196,421
None
Total
Note 1: Increase included purchasing financial assets at fair value through other comprehensive income, deferred tax for unrealized gains and unrealized gains on financial instruments
$ 3,019,393
79,294
217,566
2,881,121
at fair value.
Note 2: Decrease included sale of financial assets at fair value through other comprehensive income, unrealized loss on financial instruments at fair value and proceeds of capital
reduction of investments.
(Continued)
80
Please refer to Note (6)(i).
COMPAL ELECTRONICS, INC.
Statement of property, plant and equipment
For the year ended December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Statement of short-term borrowings
December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Creditor
Description
Period
Interest Rate
Commitments
Pledged Assets
balance
Contract
Loan
Collaterals or
Ending
Taishin International Bank Credit Loans 2020.12~2021.01
Note
$
3,000,000
United Overseas Bank
Bank of China Limited
Cathay United Bank
The bank of
Tokyo-Mitsubishi UFJ
〃
〃
〃
2020.12~2021.01
2020.12~2021.01
2020.12~2021.01
2020.12~2021.01
Bank of Communications
〃
2020.12~2021.01
CO., Ltd.
DBS Bank Limited
Taipei Fubon Commercial
Bank CO. Ltd.
〃
〃
2020.12~2021.01
2020.12~2021.01
China Construction Bank
〃
2020.12~2021.01
Corporation
Land Bank of Taiwan
E.SUN Commercial Bank
Sumitomo Mitsui Banking
Corporation
〃
〃
〃
2020.12~2021.01
2020.12~2021.01
2020.12~2021.01
Shanghai Commercial and
〃
2020.12~2021.01
Savings Bank
Citibank Taiwan, Ltd.
Agricultural Bank of
Taiwan
〃
〃
2020.12~2021.01
2020.12~2021.02
HSBC Bank (Taiwan)
〃
2020.12~2021.02
Limited
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Note: The range of interest rates of aforementioned loans were 0.48%~1.00%.
4,272,000
6,265,600
4,272,000
4,272,000
None
None
None
None
None
2,848,000
4,272,000
2,848,000
4,272,000
4,272,000
2,848,000
None
2,848,000
2,848,000
1,851,200
None
None
2,819,520
1,851,200
4,272,000
None
4,272,000
5,000,000
4,000,000
7,120,000
None
None
None
4,556,800
1,424,000
6,550,400
2,420,800
None
1,424,000
8,401,600
1,550,000
None
None
5,097,920
1,509,440
5,696,000
None
5,126,400
$
68,089,200
55,991,680
(Continued)
COMPAL ELECTRONICS, INC.
Statement of notes and accounts payable
December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Suppliers
E Company
I Company
A Company
D Company
J Company
B Company
C Company
Others (Note)
Total
81
Amount
$
30,279,281
12,250,502
9,709,329
9,625,248
9,601,755
9,293,659
7,004,933
13,060,514
$
100,825,221
Note: The amount of individual vendor included in others does not exceed 5% of the account balance.
(Continued)
82
COMPAL ELECTRONICS, INC.
Statement of long-term borrowings
December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Amount
Loan
Loan within
Loan more
Contract
Interest
Collaterals or
Creditor
Commitments
1 year
than 1 year
Period
Shanghai Commercial and
$
2,300,000
-
2,300,000 2020.06~2023.06
Rate
Note
Amount
Pledged Assets
2,300,000
None
Savings Bank
Bank of Taiwan
4,000,000
2,258,800
1,650,000 2019.09~2022.09
Taipei Fubon Commercial
2,000,000
939,840
Bank CO. Ltd.
Mizuho Bank, Ltd.
CTBC Bank Co., Ltd.
5,696,000
5,656,800
2,000,000
Far Eastern International Bank
1,000,000
Co., Ltd.
Bank SinoPac Co., Ltd.
3,300,000
-
-
-
-
-
2020.07~2022.07
2020.05~2022.05
2,000,000 2020.11~2023.11
1,000,000 2019.08~2022.08
〃
〃
〃
〃
〃
3,908,800
None
939,840
None
5,656,800
None
2,000,000
None
1,000,000
None
3,300,000 2019.03~2023.03
〃
3,300,000
None
$
20,296,000
8,855,440
10,250,000
19,105,440
Note: The range of interest rates of aforementioned loans were 0.66%~0.98%.
Statement of lease liabilities
December 31, 2020
Item
Description
Lease term
rate
Discount
Buildings
Vehicles
For office and factory space 1~10 years
For operating activities
1~5 years
Less: Current portion
Lease liabilities — Non Current
Ending balance
1,280,468
1.2% $
1.2%
18,060
1,298,528
(202,113)
$
1,096,415
(Continued)
83
COMPAL ELECTRONICS, INC.
Statement of other payables
December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Item
Description
Payroll payables and year-end
Payroll for December 2020, estimated year-end bonuses
bonuses payable
for 2020, and employees and directors’ compensations
Technical service fee payables
Others (Note)
Total
Export expense payables and others
Amount
$
3,873,936
988,765
4,366,838
$
9,229,539
Note: The amount of each item in others does not exceed 5% of the account balance.
Statement of operating revenue
For the year ended December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Quantity
Note
Item
Sales revenue:
5C electronic products
Others
Less: Sales return
Sales allowance
Net sales
Other operating revenue:
Service and processing revenue
Net sales revenue
Note: Due to multi-categories, it’s hard to be classified in categories.
Amount
$
991,194,015
114,212
(443,819)
(662,378)
990,202,030
1,077,240
$
991,279,270
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating costs
For the year ended December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Item
Raw materials
Raw materials, beginning of the year
Add: Purchases
Less: Raw materials, end of the year
Transferred to operating expense
Cost of material sold
Scraps
Others
Raw materials used
Direct labor
Manufacturing expenses
Total Manufacturing costs
Add: Work-in-process, beginning of the year
Less: Work-in-process, end of the year
Scraps
Cost of finished goods
Add: Finished goods, beginning of the year
Purchases
Others
Less: Finished goods, end of the year
Scraps
Transferred to operating expense
Costs of sales of finished goods and processing costs
Maintenance costs
Cost of material sold
Allowance for obsolescence loss and inventory valuation
Scrap loss of inventory
Cost of sales
84
Amount
$
37,621,576
627,925,144
(44,603,184)
(16,821)
(2,785,177)
(334,566)
(3,443)
617,803,529
624,957
1,434,510
619,862,996
153,034
(685,002)
(4,662)
619,326,366
13,492,637
340,101,288
863,305
(11,758,417)
(3,350)
(373,513)
961,648,316
3,243,437
2,785,177
35,077
342,578
$
968,054,585
(Continued)
85
COMPAL ELECTRONICS, INC.
Statement of operating expenses
For the year ended December 31, 2020
(Expressed in thousands of New Taiwan Dollars)
Item
Payroll expenses
Export expenses
Royalty expenses
Research expenses
Shipping expenses
Sample expenses
Others (Note)
Total
$
Research and
Selling
Administrative
development
expenses
expenses
expenses
336,384
218,903
203,682
-
2,530,981
378,594
37,285
1,338,561
7,346,416
-
-
-
1,519
273
-
-
1,185,001
272
593
922,502
2,637,352
$
3,705,829
2,262,855
11,169,634
Note: The amount of each item in others does not exceed 5% of the account balance.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
86
Table 1 Loans to other parties:
(December 31, 2020)
Name of
lender
No.
0 The
Name of
borrower
CVC
Company
Account
name
Other
receivables
Related
party
Y
Highest balance
of financing to
other parties
during the
period
302,500
Ending
balance
-
Actual
usage
amount
during the
period
-
Range of
interest rates
during the
period
3.20%
Purposes of
fund
financing
for the
borrower
Short-term
financing
Transaction
amount for
business
between two
parties
-
0 The
UCGI
Company
Other
receivables
0 The
HengHao Other
Company
receivables
0 The
CEB
Company
1 CIH
CEP
2 CPC
CDE
2 CPC
CIC
Other
receivables
Other
receivables
Other
receivables
Other
receivables
3 CIT
3 CIT
CCI
Nanjing
Other
receivables
Rayonnant
(Taicang)
Other
receivables
4 CPO
HengHao
Kunshan
Other
receivables
4 CPO
CIT
5 CET
BT
Other
receivables
Other
receivables
6 CIC
HengHao
Kunshan
Other
receivables
7 Panpal
HengHao Other
8 Arcadyan Acradyan
Brasil
8 Arcadyan Acradyan
Brasil
8 Arcadyan Arcadyan
UK
receivables
Other
receivables
Other
receivables
Other
receivables
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
500,000
250,000
220,000 1.08%~1.20% Short-term
financing
400,000
200,000
200,000 1.08%~1.20% Short-term
financing
3,013,500
1,424,000
1,424,000 2.05%~3.50% Short-term
financing
163,655
56,960
56,960
3.50%
2,610,900
1,313,100
1,313,100
2.20%
437,900
437,700
-
2.20%
Short-term
financing
Short-term
financing
Short-term
financing
4,154,500
1,993,600
1,606,272 2.00%~2.76% Short-term
financing
65,685
65,655
65,655
4.35%
Short-term
financing
1,642,410
966,800
966,800 2.00%~4.35% Short-term
financing
656,850
656,550
-
2.20%
262,740
262,620
65,655
2.20%
582,000
569,600
569,600
2.00%
Short-term
financing
Short-term
financing
Short-term
financing
1,200,000
600,000
600,000 1.08%~1.2% Short-term
financing
56,960
-
-
1.00%
56,960
56,960
37,024
1.00%
199,360
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8 Arcadyan Arcadyan
UK
Other
receivables
Y
284,800
284,800
8 Arcadyan Arcadyan
Vietnam
Other
receivables
Y
256,320
-
8 Arcadyan Arcadyan
Vietnam
Other
receivables
Y
256,320
256,320
-
-
-
-
1.00%
1.00%
1.00%
1.00%
8 Arcadyan Arcadyan
Russia
Other
receivables
9 Zhi-bao Acradyan
Brasil
10 Arcadyan
CNC
Holding
10 Arcadyan
CNC
Holding
11 SVA
CNC
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Y
Y
Y
Y
Y
56,960
56,960
6,925
1.00%
31,328
484,160
-
-
-
-
1.00%
1.00%
484,160
484,160
484,160
1.00%
153,020
153,020
139,904
3.85%
Short-term
financing
Short-term
financing
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
4,272,000
-
4,475,717
-
569,600
-
5,530,446
-
170,787
-
-
-
-
-
Operating
financing
Operating
financing
Operating
financing
Operating
financing
Reasons
for
short-
term
financing
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
financing
Operating
financing
(In Thousands of New Taiwan Dollars)
Collateral
Allowance
for
bad debt
-
Item
-
Value
-
Individual
funding loan
limits
21,366,501
Maximum
limit of fund
financing
42,733,002
Note
(Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,366,501
42,733,002
(Note 1)
21,366,501
42,733,002
(Note 1)
21,366,501
42,733,002
(Note 1)
35,228,322
35,228,322
(Note 2)
1,987,846
1,987,846
(Note 3)
1,987,846
1,987,846
(Note 3)
20,913,770
20,913,770
(Note 4)
20,913,770
20,913,770
(Note 4)
2,810,936
2,810,936
(Note 5)
2,810,936
2,810,936
(Note 5)
4,761,295
4,761,295
(Note 6)
8,030,522
8,030,522
(Note 7)
2,222,153
2,222,153
(Note 8)
2,321,872
4,643,744
(Note 9)
2,321,872
4,643,744
(Note 9)
2,321,872
4,643,744
(Note 9)
-
-
2,321,872
4,643,744
(Note 9)
-
-
455,680
4,643,744
(Note 9)
-
-
2,321,872
4,643,744
(Note 9)
-
-
136,629
4,643,744
(Note 9)
-
-
-
-
-
-
-
-
42,399
169,598
(Note 10)
2,287,344
2,287,344
(Note 11)
2,287,344
2,287,344
(Note 11)
164,728
164,728
(Note 12)
Note 1:
According to the Company’ s Procedures of Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of the Company. When a short-term financing facility
with the Company is necessary, the total amount for lending to any company shall not exceed 80% of the borrower’s net worth, nor shall it be more than 50% of the Company’s lendable amount limit, and
shall be combined with the company’s endorsements/guarantees for calculation. In addition, the total amount lendable to 100% directly or indirectly owned subsidiaries by the Company is unrestricted by
the aforesaid restriction of 80%, but the maximum amount shall not exceed 50% of the Company’s lendable limit, and shall be combined with the company’s amount of loans to others when calculating.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
87
Table 1 Loans to other parties:
(December 31, 2020)
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
According to CIH’s Procedures for Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of CIH. When a short-term financing facility with CIH is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CIH’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIH, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CPC’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CPC. When a short-term financing facility with CPC is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower ’s net worth, nor shall it exceed 50% of CPC’ s total amount of capital lent, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CPC, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CIT ’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CIT. When a short-term financing facility with CIT is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower ’s net worth, nor shall it exceed 50% of CIT ’ s total amount of capital lent, and shall be co mbined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIT, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CPO’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CPO. When a short-term financing facility with CPO is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CPO’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CPO, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CET’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CET. When a short-term financing facility with CET is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CET’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CET, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CIC ’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CIC. When a short-term financing facility with CIC is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CIC’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIC, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to Panpal’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Panpal. When a short-term financing facility with Panpal
is necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of Panpal’s total amount of lendable capital, and shall be combined with
the company’s endorsements/guarantees for calculation. In addition, when lending to the total amount lendable to 100% directly or indirectly owned subsidiaries by the Company, or the ultimate parent
company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not limited by the two aforesaid restrictions of 80%, but the maximum amount shall not exceed Panpal’s
total amount of lendable capital, and shall be combined with the company’s endorsements/guarantees for the borrower when calculating.
According to Arcadyan’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Arcadyan. To borrowers having business relationship
with Arcadyan, the total amount for lending the borrower shall not exceed 80% of the transaction amount in the last fiscal year or the expecting amount for the current year, nor shall it exceed 20% of the
net worth of Arcadyan. Also, the amount shall be combined with the Arcadyan’ s endorsements/guarantees for the borrower when calculating. When a short-term financing facility is necessary, the borrower
should be Arcadyan’ s investee. The total amount for lending the borrower shall not exceed 80% of the net worth of the borrower, nor shall it exceed 20% of the net worth of Arcadyan, and shall be
combined with the Arcadyan’s endorsements/guarantees for the borrower when calculating.
Note 10: The total amount of loans to others shall not exceed 40% of the net worth of Zhi-bao. To borrowers having business relationship with Zhi-bao, the total amount for lending the borrower shall not exceed
80% of the transaction amount in the last fiscal year or the expecting amount for the current year, nor shall it exceed 20% of the net worth of Zhi-bao. When a short-term financing facility is necessary, the
borrower should be the investee of parent company, and the total amount for lending the borrower shall not exceed 10% of the net worth of the borrower.
Note 11: According to Arcadyan Holding’s Procedures of Lending Funds to Other Parties, the total amount of loans to others shall not exceed the net worth of Arcadyan Holding. When a short-term financing facility
is necessary, the borrower should be Arcadyan Holding’s investee. The total amount for lending the borrower shall not exceed the net worth of Arcadyan Holding, and shall be combined with the Arcadyan
Holding’s endorsements/ guarantees for the borrower when calculating.
Note 12: Accroding to SVA's Procedure for Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of SVA. To borrowers having business relationship with SVA,
the total amount for lending the borrower shall not exceed 80% of the transation amount in the last fiscal year or the expecting amount for the current year, nor shall it exceed 20% of the net worth of SVA.
Also, the amount shall bbe combined with the SVA's endorsements/gurarantees for the borrower when calculating. When a short-term financing facility is necessary, the borrower should be the investee of
the parent company. The total amount for lending the borrower shall not exceed 20%of the net worth of SVA, and shall be combined with SVA's endorsenents/guarantees for the borrower when calculating .
In addition, when lending to the parent company or its 100% directly and indirectly owned subsidiaries, the total amount or individual amount shall not exceed the net worth of the latest financial statements
of SVA.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
88
Table 2 Guarantees and endorsements for other parties:
(December 31, 2020)
Counter-party of
guarantee and
endorsement
Name of
guarantor
No.
0 The Company CEB
Name
Relationship
with the
Company
(Note 3)
Limitation on
amount of
guarantees
and
endorsements
for a specific
enterprise
26,708,126
Highest
balance for
guarantees
and
endorsements
during the
period
Balance of
guarantees
and
endorsements
as of
reporting date
Property
pledged for
guarantees
and
endorsements
(Amount)
Actual usage
amount
during the
period
Ratio of
accumulated
amounts of
guarantees and
endorsements to
net worth of the
latest financial
statements
Maximum
amount
for guarantees
and endorsements
(Note 1)
60,500
56,960
56,960
0.05%
53,416,252
(In Thousands of New Taiwan Dollars)
Parent
company
endorsements
/guarantees
to third
parties on
behalf of
subsidiary
Y
Subsidiary
endorsements
/guarantees
to third
parties on
behalf of
parent
company
-
Endorsements
/ guarantees
to third
parties on
behalf of
companies in
Mainland
China
-
0
The Company
CEP
(Note 2)
26,708,126
190,295
157,837
157,837
0.15%
53,416,252
Y
-
-
-
-
Note 1: According to the Company’ s Procedures for Endorsement and Guarantee, the total amount of endorsements/ guarantees th e Company or the Group is permitted to make shall not exceed 50% of the
Company’s net worth. Endorsements/ guarantees the Company and the Group are permitted to make for a single company shall not exceed 25% of the Company’s net worth. For entities having business
relationship with the Company, the amount of endorsements/ guarantees for a single company shall not exceed 80% of the transaction amount in the last fiscal year or the expecting amount of the curren t
year, and shall be combined with the amount lend to others when calculating. The amount of endorsements/ guarantees permitted to make between subsidiaries whose over 90% of its voting shares ar e
owned, directly or indirectly, by the Company shall be no more than 10% of the net worth of the Company. The amount of endors ements/ guarantees permitted to make between directly or indirectly
wholly owned subsidiaries is not limited by the aforementioned restriction, only the maximum amount shall be no more than 25% of the net worth of the Company.
Note 2: Subsidiary whose over 50% common stock is directly owned.
Note 3: Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
89
Table 3 Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2020)
Name of
holder
Category and name of security
The Company Taiwan Star
Relationship with
security issuer
‑
Account name
Financial assets at fair value
through other comprehensive
income-non-current
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
98,046
Carrying
value
686,325
Holding
percentage
(%)
3%
Fair value
686,325
Note
Kinpo Electronics, Inc. (“Kinpo”)
The same chairman Financial assets at fair value
through other comprehensive
of the Company
income-non-current
Cal-Comp Electronics (Thailand) Public The same chairman Financial assets at fair value
through other comprehensive
Co., Ltd.
income-non-current
of the Company
124,044
1,507,132
9%
1,507,132
239,631
491,243
5%
491,243
HWA VI Venture Capital Corp.
HWA Chi Venture Capital Corp.
mProbe Ltd.
Chen Feng Optoelectronics
PrimeSensor Technology Inc.
IIH Biomedical Venture Fund
Phoenix Innovation Investment
Corporation.
Others
Total
‑
‑
‑
‑
‑
‑
‑
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non current
Financial assets at fair value
through profit or loss-non current
Financial assets at fair value
through profit or loss and other
comprehensive income
Panpal
Compal Electronics, Inc.
Kinpo
The parent company Financial assets at fair value
through other comprehensive
income-non-current
The same chairman Financial assets at fair value
through other comprehensive
of the Company
income-non-current
CDIB Partners Investment Holding
Corp.
‑
AcBel
The same chairman
of the Company
Taiwan Biotech Co., Ltd.
‑
Others
Total
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
290
26,701
10%
26,701
632
20,804
11%
20,804
4,000
60,680
3%
60,680
6,685
35,764
10%
35,764
663
6,920
3%
6,920
2,500
23,450
8%
23,450
6,000
76,740
19%
76,740
104,131
3,039,890
31,648
655,115
1%
655,115
23,172
281,546
2%
281,546
54,000
827,820
5%
827,820
5,677
164,340
1%
164,340
5,769
115,378
3%
115,378
197,139
2,241,338
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
90
Table 3 Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2020)
Name of
holder
Category and name of security
Relationship with
security issuer
Account name
Gempal
Compal Electronics, Inc.
The parent company Financial assets at fair value
Lian Hong Art. Co., Ltd.
Others
Total
Hong Ji
SUYIN Optronics Co., Ltd.
(“SUYIN Optronics”)
Hong Jin
SUYIN Optronics
Arcadyan
GeoThings Inc.
AirHop Communication Inc.
Adant Technologies Inc.
IOT EYE, Inc.
TIEF FUND L.P.
Chimei Motor Electronics Co., LTD
Golden Smarthome Technology Corp.
Total
Mactech
Taichung International Golf
Country Club
HHB
HWALLAR OPTRONICS
(Fuzhou) CO., LTD.
Mithera
Beyond Limits, Inc.
BT
CIT
Suzhou Genki Fuhong Health
Management Co., Ltd.
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-current
‑
-
‑
‑
‑
‑
‑
‑
‑
‑
-
-
‑
-
-
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
18,369
Carrying
value
380,246
Holding
percentage
(%)
-
Fair value
380,246
Note
2,140
175,783
6%
175,783
2,313
558,342
380 -
1%
332 -
1%
200
1,152
349
60
-
-
-
-
7%
5%
5%
14%
-
-
-
-
-
-
-
42,840
7%
42,840
1,650
31,135
7%
31,135
1,229
-
8%
-
73,975
7,920
-
7,920
-
19%
-
(Note 1)
873
128,160
-
128,160
4,356
17%
4,356
1,470,031
-
1,470,031
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
91
Table 3 Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2020)
Name of
holder
CIC
CET
CNC
CNC
Category and name of security
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
Structured deposits–Agricultural
Bank of China "HuiLiFeng"
customization RMB Structured
Deposit
Structured deposits–SPD Bank
Yield Plus Structured Deposit
Relationship with
security issuer
‑
Account name
Financial assets at fair value
through profit or loss-current
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
-
Carrying
value
261,366
Holding
percentage
(%)
-
Fair value
261,366
Note
‑
‑
‑
Financial assets at fair value
through profit or loss-current
Financial assets at fair value
through profit or loss-current
Financial assets at fair value
through profit or loss-current
-
-
-
241,113
130,875
130,799
-
-
-
241,113
130,875
130,799
Note 1:The carrying value is the remaining amount after deducting accumulated impairment.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Patent-Company-Only Financial Statements
92
Table 4 Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Name of
company
Category and name
of security
Account
name
Name of
counter-party
Relationship
with the
company
CPC
CIT
CIT
CIT
CEC
CPO
CPO
CIC
CIC
CET
CET
CET
CET
Structured deposits–
SPD Bank Yield Plus
Structured Deposit
Financial assets
at fair value
through profit
or loss-current
Shanghai Pudong
Development
Bank
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits–
SPD Bank Yield Plus
Structured Deposit
Agricultural Bank
of China
Financial assets
at fair value
through profit
or loss-current
Financial assets
at fair value
through profit
or loss-current
Shanghai Pudong
Development
Bank
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
China CITIC
Bank
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
China CITIC
Bank
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Financial assets
at fair value
through profit
or loss-current
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
Structured deposits-
Bank of
Communications
Yun Tong Cai Fu.
Structured Deposit
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Financial assets
at fair value
through profit
or loss-current
Financial assets
at fair value
through profit
or loss-current
Financial assets
at fair value
through profit
or loss-current
Structured deposits-
The RMB "Open on
schedule" Financial
Product
Financial assets
at fair value
through profit
or loss-current
Agricultural Bank
of China
China CITIC
Bank
Bank of
Communications
Agricultural Bank
of China
Agricultural Bank
of China
Bank of China
Structured deposits-
SPD Bank Yield Plus
Structured Deposit
Financial assets
at fair value
through profit
or loss-current
Shanghai Pudong
Development
Bank
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
China CITIC
Bank
-
-
-
-
-
-
-
-
-
-
-
-
-
Note 1:Others were valuation gains and losses and foreign exchange gains and losses.
Note 2:Including gains and losses on disposal and foreign exchange gains and losses.
Beginning Balance
Purchases
Sales
Others
Ending Balance
Shares/ Units
(thousands)
-
Amount
394,013
Shares/ Units
(thousands)
-
Amount
385,196
Shares/ Units
(thousands)
-
Price
784,688
Cost
779,209
Gain (loss)
on disposal
5,479
(Note 2)
Shares/ Units
(thousands)
-
Amount
-
(Note 1)
Shares/ Units
(thousands)
-
Amount
-
(In Thousands of New Taiwan Dollars)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
437,840
-
-
-
-
-
-
-
-
-
-
-
-
-
3,152,190
855,992
641,994
1,044,310
941,591
342,397
427,996
-
-
-
-
-
-
-
1,743,032
1,711,984
863,317
855,992
646,956
641,994
1,061,102
1,044,310
958,576
941,591
346,182
342,397
436,110
427,996
804,633
-
554,026
547,835
449,395
855,992
427,996
1,198,388
-
-
-
-
217,649.00
213,998
867,292
855,992
871,923
865,836
1,211,355
1,198,388
31,048
(Note 2)
7,325
(Note 2)
4,962
(Note 2)
16,792
(Note 2)
16,985
(Note 2)
3,785
(Note 2)
8,114
(Note 2)
6,191
(Note 2)
3,651
(Note 2)
11,300
(Note 2)
6,087
(Note 2)
12,967
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
29,825
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
4,568
(Note 1)
5,716
(Note 1)
-
(Note 1)
-
(Note 1)
-
(Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
1,470,031
-
-
-
-
-
-
261,366
241,113
-
-
-
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
93
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2020)
Name of
company
Name of
property
CVC
Plant
Transaction
date
September,
2020
Arcadyan
Vietnam
July 28, 2020
(Note 1)
Plant and
mechanical
and electrical
equipment
Transaction
amount
The
maximum
limit of the
overall
project is 100
million US
dollars.
Estimated
794,885
(Note 2)
Status of
payment
Depending
on progress
in
construction
Depending
on progress
in
construction
If the counter-party is a related party,
disclose the previous transfer information
Relationship
with the
Company
Non-related
party
Relationship
with the
Company
Not
applicable
Owner
Not
applicable
Date of
transfer
Not
applicable
Amount
Not
applicable
(In Thousands of New Taiwan Dollars)
References
for
determining
price
Purpose of
acquisition
and current
condition
Price
negotiation
Operating
purpose
Others
None
Counter-
party
L&K
Engineering
Vietnam,
LLC., and
Vietnam Jiuh
Jiang Long,
LLC.
Giza E&C
etc.
Non-related
party
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Manufacturing
purpose
None
Price
comparison
and price
negotiation
Note 1: On July 28, 2020, the Board of Directors of Arcadyan Vietnam made a resolution to build plant by lease. The total contract am ount is estimated to be 794,885 thousand (VND
691,204,153 thousand).
Note 2: As of December 31, 2020, contracts of hydrant, information equipment and renovation have not been signed and completed.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
94
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Transaction details
Percentage
of total
purchases/
(sales)
Amount
(362,834)
-
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Payment terms
120 days
Unit price
Similar to non-
related parties
Payment Terms
There is no significant
difference
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
272,826
0.1%
(613,725)
(0.1)%
90 days
(476,501)
-
-
120 days
120 days
Purchase
217,864
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference
There is no significant
difference.
293,229
307,456
0.1%
0.1%
Purchase/
(Sale)
Sale
Sale
Sale
Company
Name
The
Company
Counter
party
UCGI
CBN
Cal-Comp
CEP
Nature of
relationship
Subsidiaries wholly
owned by the
Company
The Company's
subsidiaries
With the same
chairman
Subsidiaries wholly
owned by the
Company
CIH and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Just and its
subsidiaries
Subsidiaries wholly
owned by the
Company
HSI and its
subsidiaries
Subsidiaries wholly
owned by the
Company
BCI and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Etrade and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Purchase
131,063,501
13.5%
120 days
Purchase
150,400,041
15.5%
120 days
Purchase
27,468,420
2.8%
120 days
Purchase
28,091,599
2.9%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Markup based on
BCI and its
subsidiaries' cost
Purchase
28,106,438
2.9% Net 60 days from purchase Markup based on
Etrade and its
subsidiaries' cost
Henghao
Palcom
Subsidiaries wholly
owned by the
Subsidiaries wholly
owned by the
Company
Purchase
120,250
Sale
(101,649)
-
120 days
Similar to non-
related parties
- Net 60 days from delivery Similar to non-
related parties
Just and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(150,302,684)
(99.0)%
120 days
CIH and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(1,433,990)
(0.9)%
120 days
Purchase
1,363,778
(0.9)%
120 days
Purchase
133,166
(0.1)%
120 days
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(131,048,882)
(98.1)%
120 days
CEB
With the same
ultimate parent
company
Sale
(151,865)
-
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
-
-
(51,675,245)
(27.4)%
(6,550,748)
(3.5)%
(13,129,981)
(7.0)%
(10,533,140)
(5.6)%
(3,767,885)
(2.0)%
(5,448)
11,627
-
-
6,550,748
97.4%
1,136,914
2.5%
(1,288,223)
(2.0)%
(101,939)
(0.2)%
51,675,245
95.3%
69,475
0.1%
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference.
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
95
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
CIH and its
subsidiaries
Counter
party
Nature of
relationship
Just and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
Just and its
subsidiaries
HSI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Percentage
of total
purchases/
(sales)
Amount
(1,377,997)
(0.3)%
Purchase/
(Sale)
Sale
Payment terms
120 days
Sale
(2,473,443)
(0.6)%
120 days
Purchase
589,141
0.1%
120 days
Purchase
1,436,851
0.3%
120 days
Sale
(3,061,483)
(0.7)%
120 days
Unit price
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Parent company
Purchase
610,939
32.0% Net 90 days from delivery
-
Parent company
Sale
(28,308,716)
(97.8)%
120 days
Sale
(427,368)
(0.4)%
120 days
Purchase
2,472,797
2.1%
120 days
Sale
(764,533)
(0.6)%
120 days
Sale
(986,502)
0.8%
120 days
Markup based on
BCI and its
subsidiaries' cost
According to markup
pricing
According to markup
pricing
According to markup
pricing
According to markup
pricing
CBN
BCI and its
subsidiaries
Compal Electronic,
Inc.
Compal Electronic,
Inc.
CIH and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
CEB
BCI and its
subsidiaries
CIH and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
CEB
Etrade and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(28,152,136)
(99.6)% Net 60 days from delivery According to markup
pricing
HSI and its
subsidiaries
With the same
ultimate parent
company
Purchase
489,035
2.2% Net 60 days from purchase Similar to non-
related parties
UCGI
Palcom
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Henghao
Compal Electronic,
Inc.
Parent company
Purchase
370,916
86.6%
120 days
Similar to non-
related parties
Parent company
Purchase
101,823
94.2% Net 60 days from purchase Similar to non-
related parties
Parent company
Sale
(119,412)
1.1%
120 days
CEP
Compal Electronic,
Inc.
Parent company
Sale
(234,154)
(99.3)%
120 days
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(27,689,174)
(97.7)%
120 days
CIH and its
subsidiaries
With the same
ultimate parent
company
Purchase
3,064,654
10.5%
120 days
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
1,288,223
1.0%
1,548,460
1.2%
(5,576)
-
(1,136,914)
(0.9)%
2,539,028
2.0%
(293,229)
(40.0)%
10,533,140
87.7%
5,576
-
(1,548,460)
(5.0)%
2,360,423
7.3%
1,380,707
(4.3)%
Payment Terms
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
3,767,885
98.6%
(287,543)
(5.3)%
(272,826)
(99.9)%
(11,627)
(96.7)%
5,448
0.2%
-
-
13,129,981
97.2%
(2,539,028)
(11.8)%
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference
There is no significant
difference
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
(Continued)
Purchase
975,309
10.5%
120 days
Similar to non-
related parties
There is no significant
difference
(1,380,707)
(43.5)%
Purchase
152,379
1.6%
120 days
Similar to non-
related parties
There is no significant
difference
(69,475)
(4.7)%
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
96
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2020)
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
HSI and its
subsidiaries
Counter
party
Nature of
relationship
BCI and its
subsidiaries
With the same
ultimate parent
company
Purchase/
(Sale)
Purchase
Transaction details
Percentage
of total
purchases/
(sales)
Amount
759,770
2.6%
Payment terms
120 days
Unit price
Similar to non-
related parties
Just and its
subsidiaries
With the same
ultimate parent
company
Etrade and its
subsidiaries
With the same
ultimate parent
company
Sale
(138,402)
0.5%
120 days
Sale
(505,022)
(1.8)%
120 days
Similar to non-
related parties
Similar to non-
related parties
Payment Terms
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Arcadyan
CNC
Acradyan
Vietnam
Acradyan
Germany
Acradyan
USA
Acradyan
AU
Acradyan
Germany
Acradyan
USA
Acradyan
AU
CNC
Acradyan
Vietnam
Arcadyan
Arcadyan
Arcadyan
Arcadyan
Arcadyan
Arcadyan's subsidiary
Sale
(867,017)
(3.0)% Net 150 days from delivery
Arcadyan's subsidiary
Sale
(5,413,289)
(18.0)% Net 120 days from delivery
Arcadyan's subsidiary
Sale
(1,394,596)
(5.0)% Net 60 days from the end of
the month
-
-
-
Arcadyan's subsidiary Purchase
11,026,936
27.0% Net 120 days from delivery According to markup
Arcadyan's subsidiary Purchase
1,065,328
3.0% Net 180 days from the end of
the month
pricing
According to markup
pricing
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(11,026,936)
(100.0)% Net 120 days from delivery According to markup
Sale
(1,065,328)
(100.0)% Net 180 days from the end of
the month
Purchase
867,017
100.0% Net 150 days from delivery
Purchase
5,413,289
100.0% Net 120 days from delivery
Purchase
1,394,596
100.0% Net 60 days from the end of
the month of delivery
pricing
According to markup
pricing
-
-
-
-
-
-
-
-
-
-
-
-
-
Note 1: The remaining balance is the net value of commissioned processing and sales of raw material.
Note 2: The amount of other receivables on December 31, 2020 is 303,959 thousand dollars.
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
(2,360,423)
(11.0)%
101,939
(0.8)%
287,543
2.0%
242,935
1,039,758
22,357
4.0%
17.0%
-
(3,407,485)
(40.0)%
(Note 1)
(Note 2)
-
(Note 1)
3,407,485
94.0%
(Note 1)
(Note 2)
-
(Note 1)
(242,935)
(100.0)%
(1,039,758)
(100.0)%
(22,357)
(100.0)%
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
97
Table 7 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(December 31, 2020)
Nature of
relationship
Ending Balance
Turnover
rate
Name of Company
The Company
Counter-party
CBN
The Company
UCGI
The Company
Cal-comp
Just and its
subsidiaries
Just and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
Compal Electronic,
Inc.
CIH and its
subsidiaries
Compal Electronic,
Inc.
Just and its
subsidiaries
CIH and its
subsidiaries
BCI and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
Etrade and its
subsidiaries
HSI and its
subsidiaries
HSI and its
subsidiaries
Compal Electronic,
Inc.
HSI and its
subsidiaries
CEB
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Etrade and its
subsidiaries
HSI and its
subsidiaries
Just and its
subsidiaries
The Company's
subsidiary
The Company's
subsidiary
With the same
chairman
Parent company
With the same
ultimate parent
company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
company
Arcadyan
Arcadyan
Arcadyan
Arcadyan Germany Arcadyan's subsidiary
Arcadyan USA
Arcadyan's subsidiary
Arcadyan Vietnam Arcadyan's subsidiary
CNC
Arcadyan
With the same
ultimate parent
company
Note 1:Balance as of March 16, 2021.
Note 2:Balance as of February 26, 2021.
Note 3:Other receivables due to purchasing on behalf of related parties.
Note 4:Accounts receivables due to processing raw material.
293,229
272,826
307,456
6,550,748
1,136,914
51,675,245
1,288,223
1.97
2.28
3.10
7.39
2.52
2.44
2.14
1,548,460
3.14
2,539,028
2.35
10,533,140
2,360,423
3.03
0.38
1,380,707
0.92
3,767,885
13,129,981
287,543
5.73
1.76
3.51
101,939
2.72
242,935
1,039,758
303,959
(Note 3)
3,407,485
(Note 4)
2.73
2.91
(Note 3)
3.38
Overdue
Amount
-
Action taken
-
(In Thousands of New Taiwan Dollars)
Amounts received in
subsequent period
176,313
(Note 1)
Allowance
for bad
debts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (Note 1)
- (Note 1)
(Note 1)
(Note 1)
-
-
51,675,245
(Note 1)
- (Note 1)
-
-
(Note 1)
(Note 1)
10,533,140
(Note 1)
-
(Note 1)
200,985
(Note 1)
-
(Note 1)
3,391,483
(Note 1)
100,280
(Note 1)
95,173
(Note 1)
216,165
1,019,515
7,278
(Note 2)
(Note 2)
(Note 2)
3,223,397
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
98
Table 8 The information on investees for the year ended December 31, 2020 (excluding information on 口investees in Mainland China):
(December 31, 2020)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
The Company Bizcom
Main Businesses
and Products
Milpitas, USA Warranty services and
Location
December 31,
2020
December 31,
2019
36,369
36,369
Shares
100
Percentage
of
Ownership
100%
Carrying
Value
431,834
Net income
(losses) of
investee
8,266
Share of
profits/losses of
investee
8,266
Note
Original Investment Amount
Ending Balance
Just
CIH
Panpal
Gempal
marketing of LCD TVs and
notebook PCs
British Virgin
Islands
Investment
British Virgin
Islands
Investment
1,480,509
1,480,509
48,010
100%
7,734,191
3,843
3,843
1,787,680
1,787,680
53,001
100%
35,241,171
2,502,193
2,502,193
Taipei City
Investment
5,171,837
5,171,837
500,000
100%
4,911,705
9,328
(28,650)
Taipei City
Investment
900,036
900,036
90,000
100%
1,729,287
137,732
115,689
(Note 1)
Kinpo Group management
Taipei City
Consultation, training
services, etc.
Ripal
Tainan City Manufacturing of electric
appliance and audiovisual
electric products
3,000
3,000
300
38%
4,659
83
31
(Note 1)
60,000
60,000
6,000
100%
83,481
12,248
6,849
Unicore
Taipei City Management&Consultant,
200,000
200,000
20,000
100%
125,283
(20,298)
(20,381)
Lead-Honor
CEH
Shennona Taiwan
rental and leasing business and
wholesale and retail of medical
equipments
Taoyuan City Manufacturing of electric
appliance and audiovisual
electric products
Investment
British Virgin
Islands
Taipei City Management&Consultant,
rental and leasing business,
wholesale and retail sale of
precision instruments and
International Trade
42,000
42,000
2,772
42%
-
34
34
1
100%
3,356,563
-
-
-
-
6,000
6,000
600
100%
2,773
(1,340)
(1,519)
Allied Circuit
Taoyuan City Production and sales of PCB
395,388
395,388
10,158
20%
390,455
531,744
108,556
Maxima
Aco Smartcare
Lipo
CPE
ATK
Taipei City
boards
Investment
Hsinchu City Wholesale and retail sale of
computer software, software
design services, data
processing services, wholesale
and retail sale of electronic
materials, wholesale and retail
sale of precision instruments,
and biotechnology services
Investment
Cayman
Islands
The
Netherlands
1,260
1,260
126
23%
5,699
8,206
701
90,000
90,000
100,000
52%
73,564
(23,856)
(12,414)
489,450
489,450
98
49%
575,047
119,774
58,689
Investment
197,463
197,463
6,427
100%
788,259
6,256
6,256
Hsinchu City Design, research &
-
-
-
-
-
56
15
development, and selling of
DVD, Combo, CD-RW Drives
Crownpo
Taipei City Manufacturing, processing,
149,547
149,547
3,739
33%
58,126
5,947
1,976
and selling resistor chips,
networking chips, diodes,
multilayer ceramic capacitors,
semiconductor devices, and
selling electronic products
Investment
Taipei City
Investment
Taipei City
Taichung City Manufacturing of equipment
1,000,000
295,000
219,601
1,000,000
295,000
219,601
100,000
29,500
21,756
100%
100%
53%
1,141,439
351,308
235,534
110,567
38,077
17,515
110,567
38,084
9,735
and lighting, retailing of
equipment and international
trading
R&D of notebook PC related
products and components
Austin, TX
USA
Hsinchu City R&D, manufacturing and sales
of wireless network, integrated
household electronics, and
mobile office products
101,747
101,747
3,000
100%
124,827
4,635
4,635
1,325,132
1,325,132
41,305
20%
2,386,293
1,713,942
339,600
British Virgin
Islands
Delaware,
USA
British Virgin
Islands
Poland
Investment
2,754,741
2,754,741
89,755
100%
4,796,528
112,909
112,909
Medical care IOT business
32,665
32,665
2,600
100%
1,222
(84)
(84)
Investment
1,346,814
1,346,814
42,700
54%
357,637
(190,132)
(162,171)
Maintenance and warranty
services of notebook PCs
90,156
90,156
136
100%
18,666
842
2,244
Hong Ji
Hong Jin
Mactech
Auscom
Arcadyan
FGH
Shennona
HSI
CEP
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
99
Table 8 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Location
Main Businesses
and Products
December 31,
2020
December 31,
2019
The Company Hippo Screen
Taipei City Management&Consultant,
42,000
42,000
Percentage
of
Ownership
70%
Shares
2,100
Carrying
Value
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
16,949
(26,086)
(17,920)
Original Investment Amount
Ending Balance
Infinno
Hsinchu
County
Rental and Leasing Business,
wholesale and retail sale of
precision instruments and
International Trade
Manufacturing of electronic
components, wholesale and
retail sale of precision
instruments and electronic
materials
109,837
109,837
5,650
27%
13,017
(15,372)
(4,182)
HengHao
Taipei City Manufacturing of PCs,
5,529,757
5,529,757
20,015
100%
(269,253)
10,001
8,553
computer periphery devices,
and electronic components
BCI
CBN
British Virgin
Islands
Hsinchu
County
Investment
2,636,051
2,636,051
90,820
100%
6,462,523
613,030
613,030
R&D and sales of cable
modem, digital setup box, and
other communication products
284,827
284,827
29,060
43%
713,557
46,723
20,297
Rayonnant
Taipei City Manufacturing and sales of
295,000
295,000
29,500
100%
125,319
66,935
69,187
PCs, computer periphery
devices, and electronic
components
CRH
Acendant Private Equity
Investment Ltd. (“APE”)
Etrade
Webtek
Forever
UCGI
Palcom
Avalue
CORE
GLB
CGSP
ARCE
Investment
Investment
Investment
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Taipei City Manufacturing and retail sale
Investment
Investment
of computers and electronic
components
Selling of mobile phones
Manufacturing, processing,
and import and export business
of industrial motherboards
Taipei City
New Taipei
City
British Virgin
Islands
New Taipei
City
Poland
Taipei City
Manufacturing and wholesale
of medical equipment
Maintenance and warranty
services of notebook PCs
Biotechnology services,
research & development
services, intellectual property
rights, wholesale of animal
medication, retail sale and
management advisory.
Cancerous immunocyte
therapy and regenerative
medicine
Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
Raypal
Taipei City
Panpal
Arcadyan
Hsinchu City
377,328
377,328
12,500
100%
191,019
68,396
68,396
943,922
943,922
31,253
35%
994,883
142,340
49,423
1,532,029
1,532,029
46,900
65%
(719,895)
155,770
(162,840)
3,340
1,575
3,340
1,575
100
50
100%
572,869
55,882
55,882
100%
1,329,114
(53,455)
(53,455)
199,999
100,000
10,000
100%
(381,227)
(22,052)
(21,929)
100,000
547,595
100,000
559,189
10,000
14,924
100%
21%
112,424
625,188
6,801
215,886
6,801
47,355
246,860
246,860
15,000
50%
318,019
24,262
12,032
37
60,000
-
-
-
100%
-
(37)
20,000
33%
59,852
(27,062)
(37)
(148)
155,076
-
3,446
30%
151,051
(38,071)
(4,025)
82,597,631
3,966,905
279,202
279,202
8,192
4%
518,053
1,713,942
Investment
4,318,860
4,318,860
147,000
100%
7,356,671
74,866
74,866
Allied Circuit
Taoyuan City Production and selling of PCB
148,263
148,263
2,927
6%
112,513
531,744
boards
Gempal
Others
Arcadyan
Hsinchu City Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
306,655
306,655
9,279
4%
306,536
611,802
1,713,942 Investment
gain(losses)
recognized by
Gempal
(Continued)
Investment
gain(losses)
recognized by
Panpal
Investment
gain(losses)
recognized by
Panpal
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
100
Table 8 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Location
Main Businesses
and Products
December 31,
2020
December 31,
2019
Gempal
Allied Circuit
Taoyuan City Production and selling of PCB
53,645
53,645
boards
Percentage
of
Ownership
6%
Carrying
Value
123,764
Net income
(losses) of
investee
531,744
Shares
3,220
Original Investment Amount
Ending Balance
Hong Ji
Others
Arcadyan
Hsinchu City Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
306,655
306,655
9,279
4%
2,311
611,802
1,713,942
Allied Circuit
Taoyuan City Production and selling of PCB
10,389
12,274
851
2%
27,838
531,744
Hong Jin
Arcadyan
boards
Hsinchu City Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipments and
materials import and
manufacturing
131,942
131,942
4,609
2%
288,893
1,713,942
Note
Share of
profits/losses of
investee
Investment
gain(losses)
recognized by
Gempal
Investment
gain(losses)
recognized by
Hong Ji
Investment
gain(losses)
recognized by
Hong Ji
Investment
gain(losses)
recognized by
Hong Jin
Just
CDH (HK)
Hong Kong
Investment
1,774,233
1,774,233
62,298
100%
5,434,537
CII
CPI
CII
Smart
AEI
MEL
MTL
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
263,298
263,298
9,245
100%
239,796
14,240
14,240
500
100%
852,569
9,450
Investment
gain(losses)
recognized by
Just
28
28
1
100%
363
U.S.A
Sales and maintenance of LCD
TVs
28,480
28,480
1,000
100%
45,117
U.S.A
Investment
234,504
234,504
U.S.A
Investment
28
28
-
-
100%
194,325
207
100%
29
-
CIH
CIH ( HK)
Hong Kong
Investment
2,130,375
2,130,375
74,803
100%
33,766,486
2,734,885
Jenpal
PFG
FWT
CCM
HSI
IUE
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
209,328
209,328
7,350
100%
101,170
1,288
28
28
1
100%
434,865
22,376
424,352
424,352
14,900
100%
424,829
51
145,248
145,248
5,100
51%
26,071
870
1,908,160
1,908,160
67,000
100%
1,111,077
(213,296) Investment
gain(losses)
recognized by
HSI
(Continued)
(19,931) Investment
gain(losses)
recognized by
Just
(314) Investment
gain(losses)
recognized by
Just
(3) Investment
gain(losses)
recognized by
CII
(519) Investment
gain(losses)
recognized by
CII
Investment
gain(losses)
recognized by
CII
Investment
gain(losses)
recognized by
CII
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
Investment
gain(losses)
recognized by
CIH
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
101
Table 8 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
HSI
Goal
Investee
Company
Location
British Virgin
Islands
IUE
CVC
Vietnam
Goal
CDM
Vietnam
Original Investment Amount
Ending Balance
Main Businesses
and Products
Investment
December 31,
2020
361,696
December 31,
2019
361,696
Shares
12,700
Percentage
of
Ownership
100%
Carrying
Value
300,321
R&D, manufacturing, sales,
and maintenance of notebook
PCs, computer monitors, LCD
TVs and electronic
components
Construction of and investment
in infrastructure in Ba-Thien
industrial district of Vietnam
1,908,160
1,908,160
67,000
100%
1,111,077
361,696
361,696
12,700
100%
301,850
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
(55,369) Investment
gain(losses)
recognized by
HSI
(213,296) Investment
gain(losses)
recognized by
IUE
(55,369) Investment
gain(losses)
recognized by
Goal
BCI
CMI
British Virgin
Islands
Investment
2,301,754
2,301,754
80,820
100%
4,045,228
396,577
PRI
British Virgin
Islands
Investment
284,800
284,800
10,000
100%
2,417,295
216,453
CORE
BSH
British Virgin
Islands
Investment
4,186,560
4,186,560
147,000
100%
7,356,672
74,866
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
CORE
BSH
Mithera
Cayman
Islands
Investment
142,400
142,400
-
99%
136,264
HSI
British Virgin
Islands
Investment
1,053,760
1,053,760
37,000
46%
1,053,760
(3,109) Investment
gain(losses)
recognized by
BSH
(190,132) Investment
gain(losses)
recognized by
BSH
Forever
GIA
British Virgin
Islands
Selling of mobile phones
-
CWV
Vietnam
R&D, manufacturing, sales,
and maintenance of notebook
PCs, computer monitors, LCD
TVs and electronic
components
56,960
-
-
-
-
100%
-
-
Investment
gain(losses)
recognized by
Forever
100%
3,203
(55,790) Investment
gain(losses)
recognized by
Forever
Webtek
Etrade
British Virgin
Islands
Investment
712,000
712,000
25,000
35%
(124,856)
155,770
Investment
gain(losses)
recognized by
Webtek
Unicore
Raycore
Taipei City
Animal medication retail and
wholesale
25,500
25,500
1,275
51%
14,720
(8,218) Investment
gain(losses)
recognized by
Unicore
Arcadyan
Arcadyan Holding
British Virgin
Islands
Investment
2,359,732
2,064,032
69,780
100%
2,240,149
95,019
Arcadyan USA
U.S.A
Sales of wireless network
products
23,055
23,055
1
100%
91,507
62,073
Arcadyan Germany
Germany
Technology support and sales
of wireless network products
1,125
1,125
0.5
100%
76,874
5,667
Arcadyan Korea
Korea
Sales of wireless network
products
2,879
2,879
20
100%
13,858
6,446
Zhi-bao
Taipei City
Investment
48,000
48,000
34,980
100%
423,997
9,632
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
TTI
Taipei City
R&D and sales of household
digital products
308,726
308,726
25,028
61%
503,434
AcBel Telecom
Taipei City
Investment
23,000
23,000
4,494
51%
32,700
(193,291) Investment
gain(losses)
recognized by
Arcadyan
(16,432) Investment
gain(losses)
recognized by
Arcadyan
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
102
Table 8 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Arcadyan
Arcadyan UK
Location
UK
Main Businesses
and Products
Technical support of wireless
network products
Original Investment Amount
Ending Balance
December 31,
2020
December 31,
2019
1,988
1,988
Shares
50
Percentage
of
Ownership
100%
Carrying
Value
3,555
Net income
(losses) of
investee
446
Arcadyan AU
Australia
Sales of wireless network
products
1,161
1,161
50
100%
46,106
9,619
CBN
Hsinchu
County
Sales of communication and
electronic components
11,925
11,925
533
1%
13,204
46,723
Share of
profits/losses of
investee
Note
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Arcadyan RU
Russia
Sales of wireless network
products
2,492
-
-
100%
2,142
Arcadyan and
Zhi-bao
Arcadyan Brasil
Brazil
Sales of wireless network
products
81,593
81,593
968
100%
(16,192)
Arcadyan
Holding
Sinoprime
British Virgin
Islands
Investment
542,544
257,744
19,050
100%
453,544
(243) Investment
gain(losses)
recognized by
Arcadyan
(10,717) Investment
gain(losses)
recognized by
Arcadyan
(10,815) Investment
gain(losses)
recognized by
Arcadyan
Holding
Arch Holding
British Virgin
Islands
Investment
313,593
313,593
35
100%
886,668
62,526
Investment
gain(losses)
recognized by
Arcadyan
Holding
TTI
Quest
Samoa
Investment
34,176
34,176
1,200
100%
32,776
TTJC
Japan
Sales of household digital
electronic products
9,626
4,130
0.7
100%
5,947
Quest
Exquisite
Samoa
Investment
33,322
33,322
1,170
100%
19,908
AcBel
Telecom
Leading Images
British Virgin
Islands
Investment
-
1,424
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless
network products
541,120
256,320
Leading
Images
Astoria GmbH
Germany
Sales of wireless network
products
-
874
-
-
-
-
-
100%
449,357
-
-
(59,064) Investment
gain(losses)
recognized by
TTI
(1,588) Investment
gain(losses)
recognized by
TTI
(59,068) Investment
gain(losses)
recognized by
Quest
(14,432) Investment
gain(losses)
recognized by
AcBel Telecom
(10,815) Investment
gain(losses)
recognized by
Sinoprime
(768) Investment
gain(losses)
recognized by
Leading Images
(Note 2)
(Note 3)
Zhi-bao
CBN
Rayonnant
APH
Hsinchu
County
Produces and sales of
communication and electronic
components
British Virgin
Islands
Investment
36,272
36,272
13,140
20%
325,386
46,723
257,454
257,454
8,651
41%
126,616
105,538
Forming Co., Ltd.
Taoyuan City R&D and manufacturing of
27,300
27,300
1,820
21%
-
-
CRH
APH
APH
PEL
electronic materials
British Virgin
Islands
Investment
British Virgin
Islands
Investment
356,000
356,000
12,500
59%
191,019
105,538
89,740
89,740
3,151
100%
38,083
3,973
Rayonnant( HK)
Hong Kong
Investment
512,640
512,640
18,000
100%
271,991
101,565
Investment
gain(losses)
recognized by
Zhi-bao
Investment
gain(losses)
recognized by
Rayonnant
Investment
gain(losses)
recognized by
Rayonnant
Investment
gain(losses)
recognized by
CRH
Investment
gain(losses)
recognized by
APH
Investment
gain(losses)
recognized by
APH
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
103
Table 8 The information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):
(December 31, 2020)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
HHT
HHA
Investee
Company
Location
British Virgin
Islands
Original Investment Amount
Ending Balance
Main Businesses
and Products
Investment
December 31,
2020
1,429,235
December 31,
2019
1,429,235
Shares
46,882
Percentage
of
Ownership
100%
Carrying
Value
(183,304)
HHA
HHB
British Virgin
Islands
Investment
1,335,200
1,335,200
46,882
100%
(183,245)
Note
Share of
profits/losses of
investee
Net income
(losses) of
investee
(163,529) Investment
gain(losses)
recognized by
HHT
(163,529) Investment
gain(losses)
recognized by
HHA
HHB
HengHao Trading Co., Ltd.
British Virgin
Islands
Investment
-
285
-
-
-
5
Investment
gain(losses)
recognized by
HHB
CBN
CBNB
Belgium
CBNN
The
Netherlands
The import and export
business of broad band
network products and related
components, as well as
technical support and advisory
services
The import and export
business of broad band
network products and related
components, as well as
technical support and advisory
services
6,842
6,842
20
100%
6,321
7,016
7,016
20
100%
6,848
(256) Investment
gain(losses)
recognized by
CBN
(135) Investment
gain(losses)
recognized by
CBN
FGH
Wah Yuen Technology Holding
Ltd. and its subsidiaries
Mauritius
Investment
2,556,236
2,556,236
95,862
37%
4,861,814
112,954
Investment
gain(losses)
recognized by
FGH
GLB
Rapha
New Taipei
City
Detectors and test strip
6,500
6,500
1,275
100%
(36)
Mactech
Taiwan Intelligent Robotics
Company, LTD.
Taipei City
City
Manufacturing of equipment
43,200
43,200
2,160
20%
28,103
(334) Investment
gain(losses)
recognized by
GLB
(38,817) Investment
gain(losses)
recognized by
Mactech
Note 1: The carrying value had been deducted $559,812 and $321,435 of the Company’s stock held by Panpal and Gempal, respectively.
Note 2: The liquidation procedures had been completed on December 7, 2020.
Note 3: The liquidation procedures had been completed on October 14, 2020.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
104
Table 9 Information on investment in Mainland China:
(December 31, 2020)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2020
Investment flows
Outflow Inflow
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
1,053,760
143,952
100%
143,952
Accumulated
remittance of
earnings in
current
period
-
Book value
1,995,724
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2020
1,053,760
Total amount of
paid-in capital
1,053,760
Method of
investment
(Note 1)
569,600
(Note 2)
569,600
341,760
(Note 2)
341,760
261,340
(Note 2)
(Note 3)
68,715
(Note 2)
(Note 3)
28,480
(Note 2)
28,480
8,711
(Note 2)
(Note 3)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
569,600
(3,408)
100%
(3,408)
102,664
341,760
381,455
100%
381,455
4,768,823
-
-
207,001
100%
207,001
13,366
(1,831)
51%
(934)
(43,177)
28,480
39,641
100%
39,641
(190,957)
-
1,960
100%
1,960
(25,586)
-
-
-
-
-
-
911,360
(Note 1)
379,638
-
-
379,638
92,284
43%
39,848
426,972
-
569,600
(Note 1)
41,866
-
-
41,866
129,313
48%
61,553
460,351
-
341,760
(Note 2)
341,760
344,608
(Note 1)
344,608
683,520
(Note 2)
683,520
-
-
-
-
-
-
341,760
916,689
100%
916,689
8,030,522
344,608
(25)
100%
(25)
2,810,923
683,520
1,454,332
100%
1,454,328
20,913,770
-
-
-
(Continued)
Name of
investee
CPC
CDT
CET
CSD
Zheng Ying
Electronics
(Chongqing)
Co., Ltd.
BT
CGS
LIZ
Electronics (Kunshan)
Co., Ltd.
LIZ
Electronics (Nantong)
Co., Ltd.
CIC
CPO
CIT
Main businesses and
products
Manufacturing and
sales of monitors
Manufacturing and
sales of notebook PCs,
mobile phones, and
Digital products
Manufacturing of
notebook PCs
Manufacturing of
notebook PCs
Research &
development, and
manufacturing latest
electronic components,
precision cavity mold,
design and
manufacturing for
standard parts for
molds, and selling self
-produced products
Maintenance and
warranty service of
notebook PCs
Production and
processing
chipresistors, ceramic
capacitors, diodes, and
other latest electronic
components and
related precision
electronic equipment;
selling self-produced
products
Research &
development, and
manufacturing chip
components( chip
resistors, ceramic chip
diode； selling self-
produced products and
providing after-sales
service. Performing
wholesale and trading
business of electronic
components,
semiconductors,
special materials for
electronic components,
and spare parts
Research, manufacture
and sales of
communication
devices, mobile
phones, electronic
computer, smart watch,
and provide related
technology service
Manufacturing of
notebook PCs
Manufacturing and
sales of LCD TVs
Manufacturing of
notebook PCs
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
105
Table 9 Information on investment in Mainland China:
(December 31, 2020)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2020
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2020
Investment flows
Outflow Inflow
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
39,872
-
39,872
3,123
100%
3,123
Accumulated
remittance of
earnings in
current
period
-
Book value
48,065
Total amount of
paid-in capital
39,872
Method of
investment
(Note 2)
284,800
(Note 2)
145,248
-
444,288
(Note 2)
444,288
427,200
(Note 2)
(Note 3)
2,301,754
(Note 1)
2,301,754
2,278,400
(Note 2)
(Note 3)
-
-
-
-
145,248
(2,107)
51%
(1,517)
29,890
-
444,288
(220,802)
100%
(220,802)
578,414
-
(222,067)
100%
(222,067)
545,268
2,301,754
396,577
100%
396,577
4,045,228
-
396,303
100%
396,303
4,016,319
-
-
-
-
-
-
-
-
-
-
22,784
(Note 2)
(Note 3)
-
-
-
211
100%
211
22,844
-
284,800
(Note 1)
284,800
-
-
284,800
216,453
100%
216,453
2,417,295
-
11,961,600
(Note 2)
2,353,217
-
1,708,800
(Note 2)
326,267
-
512,640
(Note 2)
356,000
-
768,960
(Note 1)
626,560
165,184
(Note 1)
165,184
1,395,520
(Note 1)
541,120
-
-
-
-
-
-
-
-
-
2,353,217
356,025
37%
138,213
5,905,294
326,267
(227,797)
37%
(83,419)
810,695
356,000
101,565
100%
101,565
272,548
626,560
(59,301)
100%
(59,301)
(935,877)
165,184
1,774
100%
1,774
86,422
541,120
219,725
100%
219,725
460,044
-
-
-
-
-
-
(Continued)
Name of
investee
CST
Sheng Bao Precision
Electronics (Taicang)
Co., Ltd.
CIJ
CDE
CIS
CEC
CMC
CEQ
CPM
Changbao
Main businesses and
products
International trade and
distribution of
computers and
electronic components
Research &
development, and
manufacturing latest
electronic components,
precision cavity mold,
design and
manufacturing for
standard parts for
molds, and selling self-
produced products
Investment and
consulting services
Manufacturing and
sales of LCD TVs
Outward investment
and consulting services
R&D and
manufacturing of
notebook PCs, tablet
PCs, digital products,
network switches,
wireless AP, and
automobile electronic
products
Corporate management
consulting, financial
and tax consulting,
investment consulting,
and investment
management
consulting services
R&D, manufacturing
and sales of notebook
PCs and related
components. Also
provides related
maintenance and
warranty services
Manufacturing and
selling of magnesium
alloy injection molding
Production and
marketing of
magnesium alloy
molding
Rayonnant (Taicang) Manufacturing and
sales of aluminum
alloy and magnesium
alloy products
CCI Nanjing
CDCN
CWCN
Manufacturing and
processing of mobile
phones and tablet PCs
Manufacturing and
processing of mobile
phones and tablet PCs
Manufacturing and
processing of mobile
phones and tablet PCs
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
106
Table 9 Information on investment in Mainland China:
(December 31, 2020)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2020
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2020
Investment flows
Outflow Inflow
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
Book value
56,960
-
-
56,960
(172)
100%
(172)
2,856
Accumulated
remittance of
earnings in
current
period
-
Total amount of
paid-in capital
56,960
Method of
investment
(Note 1)
373,088
(Note 1)
354,576
(Note 1)
95,408
(Note 1、
10)
524,602
(Note 7)
313,593
(Note 8)
32,752
-
-
-
1,139,200
(Note 1)
1,133,589
-
-
-
-
-
-
524,602
35,282
100%
35,282
164,728
313,593
62,526
100%
62,526
886,668
32,752
(59,068)
100%
(59,068)
19,423
-
-
-
1,133,589
(165,830)
100%
(165,830)
(311,685)
-
427,200
(Note 2)
185,092
-
-
185,092
2,276
100%
2,276
128,188
-
(Note 12)
Name of
investee
Hanhelt
Arcadyan
SVA Arcadyan
CNC
THAC
HengHao
HengHao
Optoelectronic
Technology (Kunshan)
Co., Ltd.
(“HengHao Kunshan”)
Main businesses and
products
R&D and
manufacturing of
electronic
communication
equipment
R&D and sales of
wireless network
products
Manufacturing and
wireless network
products
Manufacturing of
household electronics
products
Production of touch
panels and related
components
Lucom Display
Technology (Kunshan)
Limited(“Lucom”)
Manufacturing of
notebook PCs and
related modules
(ii) Limitation on investment in Mainland China:
Names of
Company
The Company
Arcadyan
HengHao
Accumulated Investment in Mainland China
as of December 31, 2020
Investment Amounts Authorized by
Investment Commission of Ministry of
Economic Affairs
Limitation on investment in Mainland China by
Investment Commission of Ministry of Economic
Affairs
(In Thousands of USD)
15,451,454 (US$542,537)
(Note 5)
870,947 (US$30,581)
1,334,915 (US$46,872)
21,549,449 (US$756,652)
870,947 (US$30,581)
1,334,915 (US$46,872)
(Note 6)
6,965,617
(Note 13)
Note 1: Indirectly investment in Mainland China through companies registered in the third region.
Note 2: Indirectly investment in Mainland China through an existing company registered in the third region.
Note 3: Investees held by Kunshan Botai Electronics Co., Ltd. (“BT”), Compal Investment (Jiansu) Co., Ltd. (“CIJ”), Compal Electronic (Sichuan)
Co., Ltd. (“CIS”), and Compal Electronics (China) Co., Ltd. (“CPC”) through their own funds.
Note 4: The investment income (loss) was determined based on the financial report audited by the CPAs.
Note 5: Including the investment amount of sold or dissolved companies, including Beijing Compower Xuntong Electronic Technology Co., Ltd., VAP
Optoelectronics (NanJing) Corp., Flextronics Technology (Shanghai) Ltd., Lucom, LCFC (HeFei) Electronics Technology Co., Ltd. and the increased
investment amount form merging with Compal Communication Co., Ltd.
Note 6: As the Company has obtained the certificate of being qualified for operating headquarters, issued by Industrial Development Bureau, MOEA,
the upper limit on investment in mainland China is not applicable.
Note 7: Arcadyan paid US$18,420 thousands and acquired 100% shares of SVA Arcadyan from Accton Asia through Arcadyan Holding in 2010.
Note 8: Arcadyan paid US$8,561 thousands and acquired 100% shares of CNC from Just through Arcadyan Holding in 2007.
Note 9: SVA Arcadyan decreased its capital amounting to US$15,000 thousands to offset accumulated losses in March 2009.
Note 10: Arcadyan’s subsidiary, TTI, obtained the control over THAC with US$1,150 thousands on February 28, 2013 (the date of stock transferring).
Note 11: The amounts in New Taiwan Dollars were translated at the exchange rates at the balance sheet date or the average exchange rate.
Note 12: The Company had an accumulated investment amounting to US$7,350 thousands in the previous years. In the first half of 2014, HengHao
paid the Company and LG US$3,184 thousands and US$3,315 thousands, respectively, for organization restructure, to obtain 100%
ownership of Lucom.
Note 13: The net equity of HengHao is negative at December 31, 2020.
(iii) Significant transactions:
For the year ended December 31, 2020, the significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of
consolidated financial statements, are disclosed in “Information on significant transactions”.