Stock Ticker 2324
2021 Annual Report
This translated document is prepared in accordance with the Chinese version and is for reference only.
In the event of any inconsistency between the English version and the Chinese version, the Chinese version shall prevail.
Taiwan Stock Exchange Market Observation Post System: http://mops.twse.com.tw
Company Website: http://www.compal.com
Printed on May 11, 2022
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: Kuo,Kuan Ying and Chien, Szu Chuan
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 Certified Public Accountant (CPA) Fee Information
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
39
109
110
111
111
114
115
117
121
121
122
124
124
124
124
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 Information Security Management
5.7 Important Contracts
125
151
172
173
174
176
178
2
VI. Financial Information
179
183
189
190
190
190
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
191
192
193
193
194
195
198
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
199
230
230
230
230
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,
In 2021, the COVID-19 pandemic continued to affect the global economic activities and daily lives of the general public,
and our industries also faced numerous different challenges. With regard to the positive aspect of the business, as the
company benefits from the trends of work from home and learn from home, our notebook computer business has
demonstrated remarkable growth in the past two years, and our shipping volume continues to reach new highs.
However, on the other hand, due to the impacts of the insufficient workforce, component shortage and global logistics
bottleneck, we also face challenges in our business operation. As the general economic environment is of great
uncertainty and rapid change, Compal demonstrates its flexibility in corporate management and outstanding
teamwork. Based on the long-term trust of customers and joint efforts of business partners, we can continue to achieve
remarkable business outcomes. In the following, we provide further explanation on our 2021 business outcome and
business outlook for 2022 to all shareholders:
Financial Performance
Despite numerous external environmental challenges in 2021, Compal has successfully overcome all obstacles and
achieved outstanding business growth. The consolidated revenue reaches NT$ 1,235.682 billion, a growth of 18% from
last year, and the overall 5C related electronic products total output volume reached the scale of 119 million units. The
annual consolidated operating profit reaches NT$13.349 billion, a growth of 16% from last year. The non-operating
revenue is stable and in conjunction with the benefit contribution gained from the disposal of the real property of
Kunshan facility in China; therefore, the consolidated income before tax is NT$ 17.468 billion, and the net income after
tax attributable to owners of parent reaches NT$ 12.633 billion, a growth of 35%, and the earnings per share (EPS) is
NT$2.90, a record high in the last decade.
Business Development and Operation Planning
In 2021, the notebook computer business of Compal demonstrated significant growth. While facing changes in
different markets of commercial, consumer, education and gaming, we are able to satisfy customer demands promptly.
For the post-pandemic era, we expect that notebook computer use will become more diverse, and it will require
greater investment in product development services. For a long time, Compal has been committed to the investment
of research, development, and innovation, such that we have been able to gain competitive advantages in the industry.
In terms of the diverse business development, we have actively invested in several new businesses, including such as
servers, auto electronics parts, 5G solutions, IOT application devices, smart medical and healthcare, etc. As the
technology advances and along with the market development, Compal has made a stable contribution in the market,
and we expect that these new businesses will become the source driving our business to reach new highs.
In 2021, Compal also did numerous new planning for the global business operation. With Taiwan as the R&D and
innovation center, we have planned the regional production capacity to reduce the risk of overly concentrated
production and provide the most suitable service and manufacturing solution to customers. In 2021, in addition to
establishing the 5G AIOT application innovation base in the Asia New Bay Area at Kaohsiung Taiwan, we collaborated
with Kaohsiung Medical University to construct the largest cell therapy laboratory in southern Taiwan. Furthermore,
4
we also participated in the investment of the Beitou Shilin Technology Park (BSTP) based on the five main themes of
smart economy, smart health, smart transportation, smart environment and smart building, for the plan of the
establishment of the Group’s corporate headquarter, promoting smart and innovative settlement for the future. In
terms of manufacturing, in 2021, Compal Vietnam Factory II was successfully constructed completely, and production
collaboration with the Group’s fellow subsidiary Kinpo Electronics in Thailand has also been successfully started.
Moreover, we have also added a new production site in the State of Indiana, U.S.A., in order to accelerate the expansion
of production capacity for auto electronics parts business.
Talents and Sustainability
While facing a rapidly changing world, enterprises have greater demand for talents. Due to the unsecured environment
caused by the pandemic outbreak, Compal focuses more on the establishment of a stable relationship between the
company and employees and is committed to establishing a working environment based on the principle of the right
person for the right place, allowing employees to develop their skills and talents, thereby achieving an organization
with competitiveness and sustainable development. To cope with the environmental impact caused by climate change,
we have incorporated the circular economy concept into our product design, such that for all stages from material
selection to properly planning, recycling and disassembly processes, resources can be used more efficiently. For the
production end, we actively promote production sites to implement waste reduction activity and increase the use of
renewable energies to achieve the long-term environmental sustainability goal of net zero-emission sought by Compal.
In 2021, Compal has, once again, received the “Happy Enterprise Award” organized by the job bank and the recognition
of the “Taiwan Corporate Sustainability Award” presented by the Taiwan Institute for Sustainable Energy. In addition,
we have also been selected as the component stock for the “FTSE4Good Index” and “FTSE4Good TIP Taiwan ESG Index”.
Moreover, we are also ranked in the top 20% of the “Corporate Governance Evaluation” at TWSE. In the future, Compal
will continue to uphold the business philosophy of people-oriented and sustainable development to actively promote
and improve all sustainable activities.
Business Outlook
Regarding the future overall planning and the deep rooting in the existing businesses, we will continue to expand the
main directions developed in the past years to accelerate the expansion of new businesses. Particularly, for the
biotechnology and medical field, with the improvement of the computation capability of computers, artificial
intelligence, 5G telecommunication technology development of the ICT industry, we expect that smart medical
technologies will be able to assist and overcome issues currently faced in the medical sector. Accordingly, in the future,
relevant hardware facilities, software platforms, or even precision medical care of artificial intelligence development
related to smart hospitals in the future will be the fields for active business development and expansion of Compal.
Furthermore, as the human average life expectancy increases and aging society accelerates, Taiwan is expected to
enter the aged society. Accordingly, the demand for long-term care services in medical care will also increase; therefore,
Compal will invest greater resources in the healthcare field in the future. With the technical strength accumulated over
the past years in the ICT industry of Taiwan, the next trillion-dollar industry will focus on the development
biotechnology, medical care and long-term care fields in Taiwan, which is also related to the main business
development strategy for Compal for the next five years.
5
Looking into 2022, despite that there will still be great challenges in the global economy and changes in the industry,
we are still confidently ready to continue to excel further and to achieve further revenue growth continuously. In
addition, we also view profit growth as an important business target. Although the issues of insufficient manpower,
component shortage, and electricity shortage in the industry still exist, in addition to the trade conflict between the
U.S. and China, Compal has actively promoted numerous new measures with customers. Moreover, as digitization,
automation and teamwork continue to develop, we expect to move forward in 2022, making the cost and efficiency of
our business operation competitive in order to overcome challenges in the environment and market. During the
seeking of the economic value of the company, we continue to uphold the principle of fulfilling corporate social
responsibilities as a corporate citizen to respond to the expectations of all shareholders, customers, employees, and
stakeholders in the society on Compal.
We, again, sincerely appreciate your long-term support of Compal. We wish you:
Good Health and Prosperity!
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:
2020
• Won 18 awards at the 2020 “iF Design Awards”, including 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 CommonWealth Magazine’s “CSR Top 50”.
• Ranked 64th in CommonWealth Magazine’s “Top1000 in China, Taiwan and Hong Kong”, and Kinpo-
Compal group was ranked 4th in CommonWealth Magazine’s “Taiwan Top 50”.
• Won the Platinum Medal of 2020 Taiwan Corporate Sustainability report Award of TCSA and the Silver
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 in the Fortune Global 500.
• Ranked 1558th in the Forbes Global 2000.
•
•
The Company’s share capital reached TWD 44.1 billion in 2019.
The Company earned TWD 1,048.9 billion in consolidated revenue 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 awards 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”
• Ranked 64th in CommonWealth Magazine’s “Top-1000 in China, Taiwan and Hong Kong”
•
Selected into the FTSE4GOOD Index and the FTSE4GOOD TIP Taiwan ESG Index.
Selected as a constituent stock of “Taiwan High Salary 100 Index” and “Taiwan Employment 99 Index”
•
• Ranked 339th on the Fortune Global 500.
7
• Ranked 1314th on the Forbes Global 2000.
•
•
The Company’s share capital reached TWD 44.1 billion in 2021.
The Company’s consolidated revenue reached TWD 1,235.7 billion in 2021.
2022
• Won 8 awards at the 2022 “iF Design Awards”, ranked 10 in the iF Global Innovation Companies
Ranking.
•
•
Selected into the “TIP Customized Environmental Sustainability Dividend +Index”.
Selected to take part in the CDP climate change program for 8 consecutive years (2014-2021) and
received an overall CDP rating of B- at the Management Level for 2021.
• Ranked among the top 21%-35% in the TWSE-listed companies in the 8th round of "Corporate
Governance Evaluation" organized by Taiwan Stock Exchange and Taipei Exchange.
• Ranked 4th 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 March 15, 2022)
Shareholders
Board of Directors
President’s Office
Remuneration
Committee
Audit
Committee
Personnel Evaluation Committee
Investment Planning and
Management Office
Legal Affairs Office
Insider Trading Prevention Office
Top Management Committee
P
C
B
G
1
P
C
B
G
2
P
C
O
B
G
G
O
B
G
S
D
B
G
Auditing Office
Sustainability
Committee
Digital Transformation Office
ttee
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 operations
Investment Planning and
Management Office
Responsible for investment-related activities
Auditing Office
Conducts internal audits
Sustainability Committee
Promotes and executes sustainability-related plans
Legal Affairs Office
Handles the Company’s legal affairs
Digital Transformation Office
Promotes and executes digital transformation projects
Green Sustainability Office
Executes “Green Life” projects
Insider Trading Prevention
Office
Corporate Social Responsibility
Office
Occupational Safety and
Health Office
PCBG 1
PCBG 2
GOBG
SDBG
PCOBG
Implements preventive measures against insider trading
Promotes and executes CSR-related affairs
Implementing a comprehensive occupational health and safety program
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 notebook 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
(Note 1, 2)
Gender/
age
Elected
Date
Term
First
Elected
Date
Shareholding at the
election date
Current shareholding
Shares held by spouse
and underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
April 26, 2022
Spouse or relatives of second degree or
closer acting as Directors, Supervisors,
or department heads
Selected
Current
Positions held
concurrently
in the
Company
and/or any
other
companies
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
Title
Name
Relationship
(%)
(%)
(%)
(%)
Chairman
Sheng-Hsiung
Hsu
Vice-Chairman
Jui-Tsung Chen
Male
66-80
Male
66-80
2021.8.27
2021.8.27
3
years
3
years
Binpal
Investment Co.,
-
Director
Ltd.
Representative:
Wen-Being Hsu
Kinpo
Electronics, Inc.
Representative:
Chieh-Li Hsu
Director
Director
Charng-Chyi Ko
Director
Sheng-Chieh Hsu
Male
81-90
-
Male
36-50
Male
81-90
Male
66-80
2021.8.27
3
years
2021.8.27
3
years
2021.8.27
3
years
3
1984.04.16
8,975,401
0.20%
8,975,401
0.20%
17,107,025
0.39%
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
5,000,000
0.11%
5,000,000
0.11%
1990.06.22
151,628,692
3.44%
151,628,692
3.44%
-
0
-
-
0.00%
-
2020.07.21
4,117,569
0.09%
4,117,569
0.09%
631
0.00%
1984.04.16
7,896,867
0.18%
7,896,867
0.18%
30,645
0.00%
0
0
0
0
0
0
0
Honorary Doctorate, National
0.00%
Taiwan Normal University
(Note 6)
Director
Sheng-Chieh Hsu
Director
Chieh-Li Hsu
Brother’s
father and
son
Chair of Kinpo Electronics, Inc.
Honorary Doctorate, National
Cheng Kung University
Chair of Arcadyan Technology
Corp.
0.00%
0.00%
National Tao-Yuan Sr. Vocational
Agricultural and Industrial
School
0.00%
Director of BAOTEK, Inc.
0.00%
Master of International
Business, Waseda University,
(Note 6)
N/A
N/A
N/A
(Note 6)
N/A
N/A
N/A
father and
son
Japan
(Note 6)
Chairman Sheng-Hsiung Hsu
0.00%
Chair and President of AcBel
0.00%
Polytech Inc.
Bachelor of Business Dept.,
National Taiwan University
PhD, Lincoln University, USA
Chair of Taiwan Biotech Co., Ltd.
Bachelor of Architectural Dept.,
(Note 6)
N/A
N/A
N/A
2021.8.27
years
1997.05.29
9,204,201
0.21%
9,204,201
0.21%
8,152,928
0.18%
(Note 5)
(Note 5)
Tam- Kang University
(Note 6)
Chairman Sheng-Hsiung Hsu
Brothers
Director of Kinpo Electronics Inc.
11
Title
Name/
Nationality
(Note 1, 2)
Gender/
age
Elected
Date
Term
First
Elected
Date
Shareholding at the
election date
Current shareholding
Shares held by spouse
and underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Selected
Current
Positions held
concurrently
in the
Company
and/or any
other
companies
Spouse or relatives of second degree or
closer acting as Directors, Supervisors,
or department heads
Director
Yen-Chia Chou
Director
Chung-Pin Wong
Director
Chiung-Chi Hsu
Director
Ming-Chih Chang
Director
Anthony Peter
Bonadero
Director
Sheng-Hua Peng
Male
66-80
Male
51-65
Male
51-65
Male
51-65
Male
51-65
Male
51-65
2021.8.27
2021.8.27
2021.8.27
2021.8.27
2021.8.27
2021.8.27
3
years
3
years
3
years
3
years
3
years
3
years
Independent
Director
Min-Chih Hsuan
Male
66-80
2021.8.27
3
years
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
Title
Name
Relationship
(%)
(%)
(%)
(%)
1987.06.13
8,022,874
0.18%
8,022,874
0.18%
2,502,768
0.06%
0
0.00%
National Taiwan University
(Note 6)
N/A
N/A
N/A
Bachelor of Geology Dept.
2007.06.15
6,618,618
0.15%
6,618,618
0.15%
1,398
0.00%
0
0.00%
Director of Kinpo Electronics Inc.
Master of Management Science,
National Chiao-Tung University
Chair of Compal Broadband
Networks, Inc.
Master of Golden Gate
(Note 6)
N/A
N/A
N/A
1994.04.23
2,117,731
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%
0
0
0.00%
0.00%
0
0
0
0.00%
University, San Francisco, USA
Director of I PAO Bearing Co.,
Ltd.
Electrical Engineering Dept.,
(Note 6)
N/A
N/A
N/A
0.00%
Ming Chi Institute of Technology
(Note 6)
N/A
N/A
N/A
Director of Mactech Co., Ltd.
Texas A&M University
0.00%
Executive Vice-President of
(Note 6)
N/A
N/A
N/A
Auscom Engineering Inc.
Master of Electronics
Engineering, National Taiwan
2018.6.22
835,000
0.02%
835,000
0.02%
0
0.00%
0
0.00%
University
(Note 6)
N/A
N/A
N/A
Director of Arcadyan Technology
Corp.
Bachelor of Electrical
Engineering Dept., National
2012.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
Chiao Tung University
(Note 6)
N/A
N/A
N/A
Independent
Director
Duei Tsai
Male
66-80
2021.8.27
3
years
2012.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
12
Chair and President of United
Microelectronics Corp.
Ph.D., Electrical Engineering,
National Taiwan University
Independent Director of Taiwan
High Speed Rail Corporation
(Note 6)
N/A
N/A
N/A
Title
Name/
Nationality
(Note 1, 2)
Gender/
age
Elected
Date
Term
First
Elected
Date
Shareholding at the
election date
Current shareholding
Shares held by spouse
and underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Selected
Current
Positions held
concurrently
in the
Company
and/or any
other
companies
Spouse or relatives of second degree or
closer acting as Directors, Supervisors,
or department heads
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
Title
Name
Relationship
(%)
(%)
(%)
(%)
Independent
Wen-Chung
Director
Shen
Male
66-80
2021.8.27
3
years
1998.4.8
2,836,000
0.06%
2,836,000
0.06%
2,315,000
0.05%
0
0.00%
Note: 1. Except for Director Anthony Peter Bonadero, who is a US citizen, the rest of the directors 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. Independent Directors Duh-Kung Tsai Stepped down on August 27, 2021. Independent Director Wen-Chung Shen took office on August 27, 2021.
4. Wen-Chung Shen serviced as Director from April 22, 1998 to June 22, 2018.
5. Director Sheng-Chieh Hsu held 2,839,000 shares (0.06%) through proxies.
Bachelor of Electrical
Engineering Dept., National
Taiwan University
Director of Compal Electronics,
Inc.
(Note 6)
N/A
N/A
N/A
13
6. Selected Current Positions as below:
Title
Name
Chairman Sheng-Hsiung Hsu
Vice
Chairman
Jui-Tsung Chen
Selected Current Positions
Chairman: Kinpo Electronics, Inc., Cal-Comp Electronics(Thailand) Public Company Limited, AcSacca Solar Energy Co., Ltd., Cal-Comp Electronics and
communications Co., Ltd., QBit Semiconductor Ltd., Gempal Technology Corp., Panpal Technology Corp., Teleport Access Services, Inc., Kinpo
Group Management Consultant Company, Hong Ji Capital Co., Ltd., Hong Jin Investment Co., Ltd., 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., QBit Semiconductor Holding,
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., 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 Precision (Singapore) Limited, 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., Confiar Land Corp., 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
Electronics (Philippines), Inc., 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 Chair of Chinese National Federation of Industries, Honorary Chair of Importers and Exporters Association of Taipei, Honorary Chair of The
Third Wednesday Club, Policy Consultant of Taiwan Electrical and Electronic Manufacturers' Association., Chair of China Productivity Center,
Deputy Chair of Straits Exchange Foundation, Vice-Chair of Sinocon Industrial Standards Foundation , Director of Taiwan Institute of Economic
Research
Chairman: Arcadyan Technology Corporation, Ripal Optotronics Co., Ltd., Palcom International Corporation, General Life Biotechnology Co., Ltd., ARCE
Therapeutics, Inc., UniCore Biomedical Co., Ltd., Aco Healthcare Co., Ltd., Raypal Biomedical Co., Ltd., Kinpo&Compal Group Assets Development
Corporation, 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, Phoenix Innovation Venture Capital Co., Ltd., 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 & Management (Vietnam) Co., Ltd., Ascendant Private Equity Investment Ltd., 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., Compal USA (Indiana), Inc.,
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.
Director
Representative of
Binpal Investment
Co., Ltd.:
Wen-Being Hsu
Kinpo Electronics,
Inc.
Director
Representative of
Kinpo Electronics
Inc.: Chieh-Li Hsu
Independent Director: Powertech Technology Inc.
Audit Committee Member: Powertech Technology Inc.
Chief Strategy Officer: Compal Electronics, Inc.
Other: Director of Chengdian Culture and Education Foundation
Chairman: Binpal Investment Co., Ltd.
Director: AcBel Polytech Inc., CastleNet Technology Inc., Crownpo Technology Inc., iHELPER Inc., New Era AI Robotic Inc., Norm Pacific Automation Corp.,
Teleport Access Services, Inc., Cal-Comp Big Data, Inc., XYZprinting, Inc., Kinpo Group Management Consultant Company, Cal-Comp Asset
Management, Inc., Prudence Venture Investment Corp., NTNU Innovation Investment Holding Company
Chairman: AcBel Polytech Inc., AcBel Electronic (Dong Guan) Co., Ltd., AcBel Electronic (Wuhan) Co., Ltd., Shanghai Sino Hardware Electronics (Wujiang) Co.,
Ltd., Acbel Polytech (Philippines) Inc.
Vice-Chairman: Cal-Comp Electronics (Thailand) Public Company Limited
Executive Director: Chongqing Tongliang District Shanghai Sino Hardware Electronics Co., Ltd., Chongqing Kanghua Metal Product Co., Ltd.
Director: Kinpo Electronics, Inc., CastleNet Technology Inc., The Eslite Spectrum Corporation, ARCE Therapeutics, Inc., Raypal Biomedical Co., Ltd., VesCir Ltd.,
QBit Semiconductor Ltd., New Era AI Robotic Inc., AcTel Power Co., Ltd., AcRay Energy Co., Ltd., AcTek Energy Co., Ltd., Cal-Comp Big Data,
Inc., XYZprinting, Inc., Melvita Taiwan Ltd., Kinpo&Compal Group Assets Development Corporation, Ray-Kwong Medical Management Consulting
Co., Ltd., NKG Advanced Intelligence and Technology Development (Yue Yang) Co., Ltd., LIZ Electronics (Nantong) Co., Ltd., Cal-Comp Precision
Holding 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., Cal-Comp
Electronics (USA) Co., Ltd., Cal-Comp Electronics de Mexico Co., S.A. de C.V., Cal-Comp Holding (Brasil) S.A., Cal-comp Industria De
Semicondutores S.A., Cal-Comp Precision (Malaysia) SDN. BHD., Cal-Comp USA (San Diego), Co., Inc., CK Holdings Inc., CSA Holdings Inc., Power
Station Holdings Ltd., QBit Semiconductor Holding, Ltd., Target Gain Corporation
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
Chief Strategy Officer: Cal-Comp Electronics and Communications Co., Ltd.
President: AcBel Polytech Inc., Kinpo&Compal Group Assets Development Corporation, Acbel (USA) Polytech Inc., Acbel Polytech (Philippines) Inc., Cal-comp
Industria De Semicondutores S.A.
Other: Vice-Chair 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 & 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.,
Spiregene Biotech Co., Ltd., All Information Inc., 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 & Finishing Co., Ltd.
Other: Chair of Yang Bi Li Education Foundation of Management, Director of Health, Welfare & 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., Kinpo&Compal
Group Assets Development Corporation, 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., Poindus System Corp., 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 Healthcare Co., Ltd., Raypal
Biomedical Co., Ltd., Kinpo&Compal Group Assets Development Corporation, 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., Compal USA (Indiana), Inc., 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.
Sustainability committee member: Compal Electronics, Inc.
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
Wen-Chung Shen
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., Meribank Biotech Co., Ltd., Meridigen Biotech Co., Ltd., Elevant Biopharma 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)
Remuneration Committee Member: Compal Electronics, Inc.
Audit Committee Member: Compal Electronics, Inc.
Independent Director: Taiwan High Speed Rail Corporation, TTY Biopharm Company Ltd.
Independent Director for Public Welfare: Starlux Airlines Co., 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.
Sustainability committee member: Compal Electronics, Inc., TTY Biopharm Company Ltd.
Chairman: Her Tuo Co., Ltd.
Remuneration Committee Member: Compal Electronics, Inc.
Audit Committee Member: Compal Electronics, Inc.
Sustainability committee member: Compal Electronics, Inc.
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. (8.31%), Panpal Technology Corp. (4.65%), GEBO Limited (4.17%), Ho Bao Investment Co., Ltd. (2.94%), Lai-Shun Shen Tsai
(2.80%), Chun-Chi Hsu (2.40%), Ruey Shinn Co., Ltd. (1.88%), Shih-Jung Shen (1.69%), Kun-Chao Shen (1.50%), Li Chu Tsai (1.45%)
April 29, 2022
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
Panpal Technology Corporation
GEBO Limited
Ho Bao Investment Co., Ltd.
Ruey Shinn Co., Ltd.
Compal Electronics, Inc. (100%)
Li-Chu Tsai (95.39%), Chieh-Li Hsu (1.77%), Chun-Chi Hsu (1.42%), Yung-Hsu Hsu (1.42%)
Chieh-Li Hsu (45.76%), Li-Chu Tsai (20.06%), Chun-Chi Hsu (17.09%), Yung-Hsu Hsu (17.09%)
Hsin Chung Chen (33.34%), Hsin Tso Chen (33.33%), Hsin Yu Chen (33.33%)
Major shareholders of corporate shareholders
18
▓ Professional qualification of Directors and independence Information of Independent Directors:
Conditions
Name
Professional Qualification & Experience
Independence Status of Independent Directors
No. of concurrent
Independent
directorship of other
public firm held
Chairman
Sheng-Hsiung Hsu
Vice Chairman
Jui-Tsung Chen
Director
Representative of Binpal
Investment Co., Ltd.:
Wen-Being Hsu
Director
Representative of Kinpo
Electronics Inc.:
Chieh-Li Hsu
Director
Charng-Chyi Ko
Department of Chinese, Honorary Doctorate, National Taiwan Normal University
Chairman of Kinpo Electronics Inc. and Cal-Comp Electronics (Thailand) Public
Company Limited
The Chairman possesses more than 30 years of work experience required for the
business of the Company and has not been a person of any conditions defined in the
Company Act, Article 30.
Department of Electrical Engineering, Honorary Doctorate, National Cheng Kung
University
Chairman of Arcadyan Technology Corp. and Compal Communication Inc., and Chief
Strategy Officer of Compal
The Vice Chairman possesses more than 40 years of work experience required for the
business of the Company and has not been a person of any conditions defined in the
Company Act, Article 30.
National Tao-Yuan Sr. Vocational Agricultural and Industrial School
Director of BAOTEK, Inc.
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
IMBA, Waseda Business School
Chairman and President of AcBel Polytech Inc.
The Director possesses more than 20 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Department of Business, National Taiwan University and Doctorate Degree, University
of Lincoln
Director of Kinpo Electronics Inc. and Chairman of Taiwan Biotech Co., Ltd.
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
19
N/A
N/A
N/A
N/A
N/A
1
2
Conditions
Name
Professional Qualification & Experience
Independence Status of Independent Directors
No. of concurrent
Independent
directorship of other
public firm held
Director
Sheng-Chieh Hsu
Director
Yen-Chia Chou
Director
Chung-Pin Wong
Director
Chiung-Chi Hsu
Director
Ming-Chih Chang
Department of Architecture, Tam-Kang University
Director of Kinpo Electronics Inc. and Cal-Comp Electronics (Thailand) Public Company
Limited
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Department of Geosciences, National Taiwan University
Director of Kinpo Electronics Inc.
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Master of Management Science, National Chiao Tung University
Chairman of Compal Broadband Networks, Inc. and Poindus Systems Corp., and
President of Compal
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Master’s Degree, Golden Gate University, San Francisco, USA
Director of Eb-Bow-Bearing Co., Ltd.
The Director possesses more than 20 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Department of Electrical Engineering, Ming Chi University of Technology
Director of Mactech Co., Ltd., Executive Vice President of Compal and President of
LCFC (HeFei) Electronics Technology Co., Ltd.
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
20
N/A
N/A
N/A
N/A
N/A
Conditions
Name
Professional Qualification & Experience
Independence Status of Independent Directors
No. of concurrent
Independent
directorship of other
public firm held
Director
Anthony Peter Bonadero
Director
Sheng-Hua Peng
Director
Min Chih Hsuan
Texas A&M University
Executive Vice President of Auscom Engineering Inc.
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Master of Science in Electrical Engineering, National Taiwan University
Director of Arcadyan Technology Corp., Executive Vice President of Compal and Senior
Vice President of Compal Communications, Inc.
The Director possesses more than 20 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Honorary Doctorate, Department of Electrical Engineering, National Chiao Tung
University
Chairman, Vice Chairman, CEO and President of United Microelectronics Corp.
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
Director
Duei Tsai
PhD, Graduate Institute of Electrical Engineering, National Taiwan University
Independent Director of Taiwan High Speed Rail Corporation and TTY Biopharm
Company Ltd.
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
N/A
N/A
˙Compliance with independence criteria
(note)
˙The person him/herself or his/her spouse or
relatives within the second degree of kinship
(or in the name of others) hold 0 shares of
the Company with a shareholding
percentage of 0%.
˙Compliance with independence criteria
(note)
˙The person him/herself or his/her spouse or
relatives within the second degree of kinship
(or in the name of others) hold 0 shares of
the Company with a shareholding percentage
of 0%.
3
Director
Wen-Chung Shen
Department of Electrical Engineering, National Taiwan University
Chairman of Her Tuo Co., Ltd., and Director and Executive Vice President of Compal
The Director possesses more than 30 years of work experience required for the business
of the Company and has not been a person of any conditions defined in the Company
Act, Article 30.
˙Compliance with independence criteria (note)
˙Number of shares of the Company and
shareholding ratio of the person him/herself
or his/her spouse or relatives within the
second degree of kinship (or in the name of
others): 5,151,000 shares, 0.11%
21
Note: Independent Directors shall indicate the fulfilment of independence criteria.
•
Including but not limited to, the Director or the Director’s spouse or relatives within the second degree of kinship have not worked as directors, supervisors or
employees of the Company or its affiliated enterprises;
• The Director has not assumed positions as a director, supervisor or employee of company (ies) in specified relationship with the Company (Regulations Governing
Appointment of Independent Directors and Compliance Matters for Public Companies, Article 3, Paragraph 1, Sub-paragraphs 5 to 8).
• The Director has not received remuneration by providing business, legal, financial, accounting or other services to the Company or its affiliates in the last 2 years.
• Number of shares of the Company and shareholding ratio of the person him/herself or his/her spouse or relatives within the second degree of kinship (or in the
name of others).
▓ The Diversity & Independence of the Board of Directors:：
1. The Diversity of the Board of Directors:
(1)In accordance with the Company’s Corporate Governance Best-Practice Principles，the composition of the board of directors shall be determined by
taking diversity. It is advisable that directors concurrently serving as company officers not exceed one-third of the total number of the board
members, and that an appropriate policy on diversity based on the company's business operations, operating dynamics, and development needs be
formulated.
All members of the board shall have the knowledge, skills, and experience necessary to perform their duties. To achieve the ideal goal of corporate
governance, the board of directors shall possess the following abilities:
1. Ability to make operational judgments.
2. Ability to perform accounting and financial analysis.
3. Ability to conduct management administration.
4. Ability to conduct crisis management.
5. Knowledge of the industry.
6. An international market perspective.
7. Ability to lead.
8. Ability to make policy decisions.
22
(2)Status of board member diversification:
Core items for diversification
Name of Director
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
Wen-Chung Shen
Operation
management
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Item
Leadership
and decision-
making
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Knowledge
of the industry
V
V
V
V
V
V
V
V
V
V
V
V
V
International
market
perspective
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Risk
Management
Finance and
accounting
Investment
M&A
Communications
and network
Architecture
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
Age
Gender
Country of Citizenship
Employee Status
Seniority of Independent Directors
36 ~ 50 years old
51~65 years old
65 years or older
Male
Female
Republic of China
U.S.A.
The company
The companies’ subsidiaries
Less than 1 year
More than 9 years
23
Director
Independent Director
Number of people
1
5
6
12
0
11
1
4
2
-
-
%
7%
33%
40%
80%
0%
73%
7%
27%
13%
-
-
Number of people
0
0
3
3
0
3
0
0
0
1
2
%
0%
0%
20%
20%
0%
20%
0%
0%
0%
33%
67%
The current Board of Directors is comprised of 15 Directors. The management goals and implementation status of the diversity policy of the Board are as follows:
Management goal
Implementation
The number of Directors holding concurrent positions as the Company Managers not exceeding one-third of the Board seats.
Implemented
At least four Directors possess expertise in the computer industry, sales and technology.
At least two Directors possess expertise in law, finance, accounting and technology.
Implemented
Implemented
Considering the diversity factor and gender equality of the Board members, in the future, appropriate and eligible female individuals shall be considered for the
candidacy of directorship. Furthermore, the proportion of Independent Directors shall be increased.
(II)
Independence of the Board of Directors:
The current Board of Directors comprises 15 Directors, including Independent Directors (constituting 20% of the Board members). The establishment of Independent
Directors and their duty performance are compliant with the provisions of the Securities and Exchange Act, and “Regulations Governing Appointment of
Independent Directors and Compliance Matters for Public Companies.”
Apart from Sheng-Hsiun Hsu (Chairman), Sheng-Chieh Hsu (Director) and Chieh-Li Hsu (representative of juristic person Director, Kinpo Electronics Inc.) who are
relatives within the second degree of kinship, the rest of the Directors do not have spousal or familial relationships within the second degree of kinship. As such,
the Directors are not persons of conditions listed in Securities and Exchange Act, Article 26-3 and 26-4. In conclusion, the Board of Directors of the Company are
deemed independent.
24
3.2.2 Management Team
Title
Name/
Nationality/
Gender
(Note 1, 2)
Date elected
/appointed
Shares held
Shares held by spouse and
underage children
Subsidiary shareholding
Total shares held in the
names of others
Shares held
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Major career/academic achievements
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
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%
0
0
0.00%
0.00%
25
0
0
0
0
0
0
0
0
0
0.00%
Honorary Doctorate, National Cheng
Kung University
Chair of Arcadyan Technology Corp.
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Master of Management Science, National
Chiao-Tung University
Chair of Compal Broadband Networks,
Inc.
Electrical Engineering Dept., Ming Chi
University of Technology
Director of Mactech Co., Ltd.
Master of Electronics Engineering,
National Taiwan University
Director of Arcadyan Technology Corp.
National Chiao Tung University EMBA
Vice-Chair of HengHao Technology Co.
Ltd.
Master of Electrical Engineering, National
Taiwan University
Director of Kinpo Electronics Inc.
Bachelor of Physics Dept., Chung Yuan
Christian University
Senior Vice-President of Compal
Communication Inc.
Master of Business Administration,
University of Washington, USA
Senior Vice-President of Toppoly
Optoelectronics Corp.
Media Administration Dept., Shih Hsin
University
Senior Vice-President of Compal
Communication Inc.
April 26, 2022
Spouse or relatives of second degree
or closer acting as managers
Selected
Current
Positions
Title
Name
Relationship
Vice-
President
Vice-
President
Po-Tang
Wang
Hsin-Chung
Chen
Relative by
affinity
father and
son
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
Title
Name/
Nationality/
Gender
(Note 1, 2)
Date elected
/appointed
Shares held
Shares held by spouse and
underage children
Subsidiary shareholding
Total shares held in the
names of others
Shares held
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Major career/academic achievements
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
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Shi-Kuan Chen
2009.05.01
Chi-Wai Wan
2017.05.10
0
0
0.00%
0.00%
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
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Chung-Hsing Tan
2020.08.12
0
0.00%
5,320
0.00%
Ta-Chun Wang
2016.06.29
204,200
0.00%
4,119
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%
Master of Industrial Design, Cranbrook
Academy of Art
Director of Design and Customer Affairs,
Philips (Hong Kong)
Bachelor of Electrical Engineering Dept.,
Fu Jen Catholic University
Senior Vice-President of Inventec Corp.
Master of Business Administration,
Washington University, USA
Deputy Manager of Sales, Kapok
Computer Company
Electronic Engineering Dept., Lee-Ming
Institute of Technology
Chair's Special Assistant, Mag Technology
Co., Ltd.
Electronics Dept., National Taiwan
University of Science and Technology
Master of Industrial Engineering and
Operations Management, Columbia
University
Master of Electrical Engineering, Tatung
University
Vice-President of Compal Communication
Inc.
Tamkang University PhD of Finance
Managing Vice-President of Shanghai
Real Industrial Co., Ltd.
(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
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
26
Title
Name/
Nationality/
Gender
(Note 1, 2)
Date elected
/appointed
Shares held
Shares held by spouse and
underage children
Subsidiary shareholding
Total shares held in the
names of others
Shares held
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Vice-President
Chih-Chuan
Cheng
2003.01.01
2,103,786
0.05%
51,194
0.00%
0
0.00%
Vice-President
Ching-Hsiung Lu
2003.01.01
7,337,007
0.17%
750,000
0.02%
Po-Tang Wang
2007.07.10
559,548
0.01%
486
0.00%
Chief
Information
Security Officer
and Vice-
President
Vice-President
Tzong-Ming
Wang
2009.07.16
283,184
0.01%
Vice-President
Fu-Chuan Chang
2009.07.16
170,662
0.00%
Vice-President
Yong-Ho Su
2011.07.01
446,401
0.01%
Vice-President
Jyh-Shyan Liang
2011.10.31
80,000
0.00%
Vice-President
Yi-Yun Chang
2014.08.13
140,246
0.00%
Vice-President
Hsin-Kung Mao
2014.11.13
500,714
0.01%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
27
Major career/academic achievements
Department of Electronic Engineering,
Lunghwa University of Science and
Technology
Deputy Manager of Research and
Development, Top Information
Technologies Co., Ltd.
Bachelor of Accounting Dept., Feng Chia
University
Director Compal Communication Inc.
Bachelor of Computer Science and
Information Engineering Dept., National
Taiwan University
President of Vibo Telecom Inc.
0.00%
0.00%
0.00%
National Taipei Institute of Technology
Head of Research and Development,
CLEVO Company
0.00%
National Chin-Yi University of Technology
Production Manager, ADI Corp
0.00%
0.00%
0.00%
0.00%
Department of Electrical Engineering,
National Taipei Institute of Technology
Vice-President of Arima Photovoltaic and
Optical Corp.
Master of Digital Communication,
University of Colorado Boulder, USA
Vice-President of Wireless
Communication, Altek Corporation
Master of Electrical Engineering, National
Taiwan University
Senior Manager of Compal
Communication Inc.
Master of Business Administration,
University of Lincoln
Director of Avalue Technology Inc.
Selected
Current
Positions
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
(Note 4)
Chief
Strategy
Officer
Jui-Tsung
Chen
Relative by
affinity
N/A
N/A
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
(Note 4)
N/A
N/A
N/A
Title
Name/
Nationality/
Gender
(Note 1, 2)
Date elected
/appointed
Shares held
Shares held by spouse and
underage children
Subsidiary shareholding
Total shares held in the
names of others
Shares held
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Major career/academic achievements
Vice-President Shih-Hong Huang 2016.02.24
280,000
0.01%
Vice-President
Yi-Chiang Chiu
2016.02.24
280,000
0.01%
Vice-President
Jui-Chun Shyur
2016.05.11
0
0.00%
Vice-President
Jen-Liang Lin
2018.03.06
50,500
0.00%
0
0
0
0
0.00%
0.00%
0.00%
0
0
0
0.00%
0.00%
0.00%
Master in Control Engineering, National
Chiao Tung University
Director of Coretronic Corporation
Master of Earth Sciences, National
Central University
Ph.D., Electrical Engineering, National
Taiwan University
President of Photonics Industries
International, Inc.
0.00%
0
0.00%
Bachelor of Industrial Engineering Dept.,
Feng Chia University
Director of Operations Division, Compal
Fab No. 2
Master of Cornell University Law School,
USA
CSO, Pou Chen Group
Selected
Current
Positions
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
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
Chief Legal
Officer and
Vice-President
Corporate
Governance &
Accounting
Officer and
Vice-President
Peng-Hong Chan 2018.05.09.
0
0.00%
0
0.00%
0
0.00%
Cheng-Chiang
Wang
2018.07.04
2019.05.13
955,808
0.02%
30
0.00%
Vice-President
Cheng-Hui Su
2018.12.01
105,000
0.00%
0
Vice-President
Tu-Chuan Tu
2018.12.01
593,081
0.01%
62,105
Vice-President
Financial Officer
and
Vice-President
Chang-Chieh
Tien
2018.12.01
403
0.00%
Guo-Dung Yu
2020.08.12
60,000
0.00%
Vice-President
Peng Kuee Lau
2020.08.12
0
0.00%
0
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
28
0
0
0
0
0
0
0.00%
Bachelor of Accounting Dept., Fu Jen
Catholic University
Financial officer of Allied Circuit Co., Ltd.
0.00%
Master of Business Administration,
Tulane University
0.00% Vanung University, Vanung University
0.00%
0.00%
0.00%
Bachelor of Transportation Management
Dept., National Chiao Tung University
Master of Accounting, George
Washington University
Financial officer of Arcadyan Technology
Corp.
Bachelor of Science and Technology
Dept., IOWA State University
(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
(Note 4)
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
Title
Name/
Nationality/
Gender
(Note 1, 2)
Date elected
/appointed
Shares held
Shares held by spouse and
underage children
Subsidiary shareholding
Total shares held in the
names of others
Shares held
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Major career/academic achievements
Selected
Current
Positions
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
Vice-President
Yau-De Chiou
2021.02.25
Vice-President
Hou-Chun Liu
2021.11.11
Vice-President Wu-Ching Chi
2022.02.10
0
0
0
0.00%
0.00%
0.00%
0
0
0
0.00%
0.00%
0.00%
Vice-President Hsin-Chung Chen 2022.02.10
10,662,383
0.24%
10,000
0.00%
Vice-President
Jue-Teng Chang
2022.02.10
Vice-President
Choo-Tain Chiu
2022.02.10
Internal Audit
Officer
Chenyi Li
2021.08.27
0
0
0
0.00%
0.00%
0.00%
0
0
0
0.00%
0.00%
0.00%
0
0
0
0
0
0
0
0.00%
0.00%
Master of Business Administration,
Columbia Southern University, Alabama
President of Lien Chang Electronic
Enterprise Co., Ltd.
Mechanical Engineering, National
Kaohsiung University of Applied Sciences
COO of SuperAlloy Industrial Co., LTD
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.00% Master of Computer Engineering, NCTU
N/A
N/A
N/A
N/A
0.00%
0.00%
0.00%
0.00%
Master of Electrical Engineering,
Columbia University, NY
Director of Raypal Biomedical Co., Ltd.
Master of EMBA, National Central
University
Master of Business Administration,
Nanyang Technological University,
Singapore
Master of Technology Management,
National Tsing Hua University
Internal Control Director of Tingyi
(Cayman Islands) Holding Corp.
(Note 4)
N/A
N/A
Chief
Strategy
Officer
Jui-Tsung
Chen
father and
son
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Note: 1. Except for Senior Vice-President Peng Kuee Lau, anMalaysian 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. Vice-Presidents Yung-Nan Chang and Hsin-Hsiung Huang resigned in 2021, Vice-Presidents Chiao-Lie Huang and Wei-Chia Wang resigned in 2022.
29
4. Concurrent positions in other companies
Title
Name
Selected Current Positions
Executive Vice-
President
Senior 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) Ltd.
Chun-Te Shen
Director: HippoScreen Neurotech Corp., Auscom Engineering Inc., Shennona Corporation
Senior Vice-
President
Chyou-Jui Wei
Director: Taiwan Star Telecom Co., Ltd., Chenfeng Optronics Corp., General Life Biotechnology 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 & Partners
(Chongqing) Co., Ltd., ZhengYing
Electronics(Chongqing) Co., Ltd., Compal Precision Module(Jiangsu) Co., Ltd., ShengBao Precision Electronics (Taicang) Ltd.,
Rayonnant Technology (HK) Holdings Limited
Investment Holding Corp., Changbo Electronic Technology
Supervisor: HengHao Technology Co. Ltd., Rayonnant Technology Co., Ltd., Mactech Co., Ltd., Taiwan Intelligent Robotics Company, Ltd., Infinno
Technology Corp., Ripal Optotronics Co., Ltd., UNICOM GLOBAL, INC., Aco Healthcare 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.
Director: Auscom Engineering Inc.
President: Auscom Engineering Inc.
Director: Compal Wireless Communications (Nanjing) Co., Ltd., Compal Digital Communications (Nanjing) Co., Ltd., HANHELT Communications
(Nanjing) Co., Ltd., Compal Communications (Nanjing) Co., Ltd.
Director: Compal USA (Indiana), Inc.
President: Compal USA (Indiana), Inc.
Director: Zhi-Bao Technology Corporation, Arcadyan Technology (Shanghai) Corp.
Supervisor: Kinpo&Compal Group Assets Development Corporation, 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 (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.
30
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Min-Tung Weng
Chung-Hsing Tan
Ta-Chun Wang
Vice-President
Ching-Hsiung Lu
Title
Name
Selected Current Positions
Independent Director: Galaxy Software Services Corporation
Remuneration Committee Member: Galaxy Software Services Corporation
Audit Committee Member: Galaxy Software Services Corporation
Member of Information Security Committee: Galaxy Software Services Corporation
Po-Tang Wang
Director: Bizcom Electronics, Inc., CGS Technology (Poland) Sp. z o. o., Compal Europe (Poland) Sp. z o. o.
CISO and Vice-
President
Vice-President
Vice-President
Fu-Chuan Chang
Jyh-Shyan Liang
Vice-President
Hsin-Kung Mao
Corporate
Governance &
Accounting
Officer and
Vice-President
Financial Officer
and Vice-
President
Cheng-Chiang Wang
Guo-Dung Yu
Vice-President
Hsin-Chung Chen
President: Compal Optoelectronics (Kunshan) Co., Ltd., Compal Electronics, (China) Co., Ltd.
Supervisor: HANHELT Communications (Nanjing) Co., Ltd.
Vice-Chairman: Poindus System Corp.
Director: Avalue Technology Inc., UNICOM GLOBAL, INC., Amexcom Electronics, Inc., Compalead Electronics B.V., Mexcom Electronics, LLC,
Mexcom Technologies, LLC
President: Amexcom Electronics, Inc.
Director: Allied Circuit Co., Ltd., Poindus System Corp., Zhi-Bao Technology Corporation, HengHao Technology Co. Ltd., Palcom International
Corporation, Infinno Technology Corp., Phoenix Innovation Venture Capital Co., Ltd., 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
Chairman: Ruey Shinn Industrial Co., Ltd.
Director: Raypal Biomedical Co., Ltd.
31
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 profits
Salaries, bonuses, special
allowances, etc (E)
Retirement
pension (F)
Share of profits 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
Amount
Stock
Amount
Cash
Stock
The sum of A, B, C, D, E, F,
and G as a percentage of
after-tax profits
The
Company
All
companies
included in
the
financial
statements
Remunerati
on from
ventures
other than
subsidiaries
or from the
parent
company
(H)
Unit: TWD 1,000; Thousand shares; %
0
0
0
0
71,390
71,390
2,284
3,044
0.5832%
0.5892%
75,339
118,202
766
766
46,000
0
46,000
0
1.5498%
1.8951%
44,841
7,200
7,200
0
0
0
0
475
475
0.0608%
0.0608%
0
0
0
0
0
0
0
0
0.0608%
0.0608%
0
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,
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
Independent
Director
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
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
32
Note: 1. Independent Directors Duh-Kung Tsai Stepped down on August 27, 2021. Independent Director Wen-Chung Shen took office on August 27, 2021.
2. In 2021, the Company made pension contributions totaling TWD 766,000 (including TWD 324,000 under the new system and TWD 442,000 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 766,000 (including TWD 324,000 under the new system and TWD 442,000 under the old
system).
3. The distribution of directors' remuneration, was approved by the Board of Directors meeting on March 15, 2022. The remuneration amount of the Directors aforementioned is not determined fully until the meeting
of the Board of Directors decides otherwise.
▓ 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)
1 (Note 2)
2 (Note 3)
1 (Note 4)
10 (Note 5)
1 (Note 6)
3 (Note 7)
1 (Note 8)
2 (Note 9)
1 (Note 10)
10 (Note 11)
1 (Note 12)
3 (Note 13)
1 (Note 14)
2 (Note 15)
1 (Note 16)
6 (Note 17)
1 (Note 18)
2 (Note 19)
2 (Note 20)
2 (Note 21)
1 (Note 22)
2 (Note 23)
6 (Note 24)
3 (Note 25)
4 (Note 26)
18
18
18
18
Duh-Kung Tsai-1 position
Note:
1. Wen Being Hsu, Chieh-Li Hsu, Wen-Chung Shen-3 positions
2.
3. Min-Chih Hsuan, Duei Tsai-2 positions
4.
Kinpo Electronics, Inc.-1 position
5.
Jui-Tsung Chen, Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia Chou, Chung-Pin Wong, Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng, Anthony Peter Bonadero, Binpal
Investment Co., Ltd.-10 positions
Sheng-Hsiung Hsu-1 position
6.
7. Wen Being Hsu, Chieh-Li Hsu, Wen-Chung Shen-3 positions
8.
9. Min-Chih Hsuan, Duei Tsai-2 positions
Duh-Kung Tsai-1 position
33
10. Kinpo Electronics, Inc.-1 position
11.
Jui-Tsung Chen, Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia Chou, Chung-Pin Wong, Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng, Anthony Peter Bonadero, Binpal
Investment Co., Ltd.-10 positions
12. Sheng-Hsiung Hsu-1 position
13. Wen Being Hsu, Chieh-Li Hsu, Wen-Chung Shen-3 positions
14. Duh-Kung Tsai -1 position
15. Min-Chih Hsuan, Duei Tsai-2 positions
16. Kinpo Electronics, Inc.-1 position
17. Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia Chou, Chiung-Chi Hsu, Anthony Peter Bonadero, Binpal Investment Co., Ltd.-6 positions
18. Sheng-Hsiung Hsu-1 position
19. Ming-Chih Chang, Sheng-Hua Peng-2 positions
20.
Jui-Tsung Chen, Chung-Pin Wong-2 positions
21. Wen Being Hsu, Wen-Chung Shen-2 positions
22. Duh-Kung Tsai-1 position
23. Min-Chih Hsuan, Duei Tsai-2 positions
24. Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia Chou, Chiung-Chi Hsu, Binpal Investment Co., Ltd., Kinpo Electronics, Inc.-6 positions
25. Chieh-Li Hsu, Ming-Chih Chang, Sheng-Hua Peng-3 positions
26. 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)
34
3. Remuneration of the President and Vice-Presidents
Salary (A)
Pension (B)
Bonus and
special allowances (C)
Title
Name
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
Share of profits as an employee (D)
The Company
All companies included in the
financial statements
Cash
Stock
Cash
Amount
Amount
Amount
Stock
Amount
Unit: TWD 1,000; Thousand shares; %
Sum of A, B, C and D as a percentage
of after-tax profits (%)
Remuneration from
ventures other than
All companies
subsidiaries or from
The Company
included in the
the parent company
financial statements
(E)
47 employees
including CSO Jui-
Tsung Chen
(Note1)
121,367
126,968
5,643
5,643
238,093
238,594
157,586
0
157,586
0
4.1376 %
4.18591%
439
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, and 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, and Ta-Chun Wang - 12 positions
‧
Vice-Presidents: Chih-Chuan Cheng, Ching-Hsiung Lu, Po-Tang Wang, Tzong-Ming Wang, Fu-Chuan Chang, Yong-Ho Su, Jyh-Shyan Liang, Yi-Yun Chang, Hsin-Kung Mao,
Shih-Hong Huang, Yi-Chiang, Jui-Chun Shyur, Liang-Jen Lin, Peng-Hong Chan, Cheng- Chiang Wang, Cheng-Hui Su, Tu-Chuan Tu, Chang-Chieh Tien, Guo-
Dung Yu, Peng Kuee Lau, Yau-De Chiou, Hou-Chun Liu, Wu-Ching Chi, Hsin-Chung Chen, Jue-Teng Chang, Choo-Tain Chiu, Yung-Nan Chang, Hsin-Hsiung
Huang, Chiao-Lie Huang, and Wei-Chia Wang - 30 positions
2. In 2021, the Company made pension contributions totaling TWD 5,643,000 (including TWD 3,999,000 under the new system and TWD 1,644,000 under the old system).
While all companies reported in the financial statements made pension contributions totaling TWD 5,643,000 (including TWD 3,999,000 under the new system and TWD
1,644,000 under the old system).
3. Employees’ compensation appropriation was approved by the Board of Directors at the meeting on March 15, 2022. The compensations of the aforementioned managers
were not yet final and will be reviewed based on the list of the date of distribution.
35
▓ 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
4 (Note 1)
4 (Note 2)
3 (Note 3)
15 (Note 4)
11 (Note 5)
8 (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
3(Note 8)
5 (Note 9)
2 (Note 10)
16 (Note 11)
11(Note 12)
8 (Note 13)
2 (Note 14)
47
Note:
1.
2.
3.
4.
Hou-Chun Liu, Choo-Tain Chiu, Yung-Nan Chang, and Chiao-Lie Huang -4 positions
Hsin-Chung Chen, Wu-Ching Chi, Jue-Teng Chang, and Hsin-Hsiung Huang -4 positions
Ching-Hsiung Lu, Fu-Chuan Chang, and Wei-Chia Wang -3 positions
Kuo-Chuan Chen, Chih-Chuan Cheng, Po-Tang Wang, Tzong-Ming Wang, Jyh-Shyan Liang, Yi-Yun Chang, Hsin-Kung Mao, Jui-Chun Shyur, Liang-Jen Lin, Peng-Hong Chan, Cheng- Chiang Wang,
Tu-Chuan Tu, Chang-Chieh Tien, Peng Kuee Lau, Yau-De Chiou-15 positions
Chun-Te Shen, Chyou-Jui Wei, Wen-Da Hsu, Shi-Kuan Chen, Chung-Hsing Tan, Ta-Chun Wang, Yong-Ho Su, Shih-Hong Huang, Yi-Chiang Chiu, Cheng-Hui Su, and Guo-Dung Yu -11 positions
5.
6. Ming-Chih Chang, Shen-Hua Peng, Chen-Chang Hsu, Chi-Wai Wan, Min-Tung Weng, Lo-Chun Lee, Sheng-Hung Li, and Bor-Heng Chen -8 positions
7.
8.
9.
10.
11.
Jui-Tsung Chen and Chung-Pin Wong -2 positions
Hou-Chun Liu, Choo-Tain Chiu, and Chiao-Lie Huang -3 positions
Hsin-Chung Chen, Wu-Ching Chi, Jue-Teng Chang, Yung-Nan Chang, and Hsin-Hsiung Huang -5 positions
Ching-Hsiung Lu and Wei-Chia Wang -2 positions
Kuo-Chuan Chen, Chih-Chuan Cheng, Po-Tang Wang, Tzong-Ming Wang, Fu-Chuan Chang, Jyh-Shyan Liang, Yi-Yun Chang, Hsin-Kung Mao, Jui-Chun Shyur, Liang-Jen Lin, Peng-Hong Chan,
Cheng- Chiang Wang, Tu-Chuan Tu, Chang-Chieh Tien, Peng Kuee Lau, and Yau-De Chiou -16 positions
Chun-Te Shen, Chyou-Jui Wei, Wen-Da Hsu, Shi-Kuan Chen, Chung-Hsing Tan, Ta-Chun Wang, Yong-Ho Su, Shih-Hong Huang, Yi-Chiang Chiu, Cheng-Hui Su, and Guo-Dung Yu -11 positions
12.
13. Ming-Chih Chang, Shen-Hua Peng, Chen-Chang Hsu, Chi-Wai Wan, Min-Tung Weng, Lo-Chun Lee, Sheng-Hung Li, and Bor-Heng Chen -8 positions
14.
Jui-Tsung Chen and Chung-Pin Wong -2 positions
36
▓ Employee profits sharing granted to the management team
Unit: TWD 1,000
Title
Name
Stock dividends
Cash dividends
Total
Total as a percentage of after-tax profits (%)
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
157,586
157,586
1.2474%
‧Executive Vice-Presidents: Ming-Chih Chang, Shen-Hua Peng, and 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, and Ta-Chun Wang – 12 positions.
‧Vice-Presidents: : Chih-Chuan Cheng, Ching-Hsiung Lu, Po-Tang Wang, Tzong-Ming Wang, Fu-Chuan Chang, Yong-Ho Su, Jyh-Shyan Liang, Yi-Yun Chang, Hsin-Kung Mao,
Shih-Hong Huang, Yi-Chiang, Jui-Chun Shyur, Liang-Jen Lin, Peng-Hong Chan, Cheng- Chiang Wang, Cheng-Hui Su, Tu-Chuan Tu, Chang-Chieh Tien,
Guo-Dung Yu, Peng Kuee Lau, Yau-De Chiou, Hou-Chun Liu, Wu-Ching Chi, Hsin-Chung Chen, Jue-Teng Chang, and Choo-Tain Chiu – 26 positions
2. Vice-Presidents Yung-Nan Chang, Hsin-Hsiung Huang resigned in 2021, Vice-Presidents Chiao-Lie Huang, Wei-Chia Wang resigned in 2022.
3. Employees’ compensation appropriation was approved by the Board of Directors at the March 15, 2022 meeting. The compensations of the aforementioned managers
have not been finalized and will be reviewed based on the list upon the date of distribution.
37
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.
Analysis
Directors
CSO, Presidents, and
Vice-Presidents
Net Income
2021
2020 (Note)
Amount
%
Amount
%
Increase (Decrease)
%
Amount
Unit: TWD 1,000
652,917
5.17%
584,112
6.24%
68,805
11.78%
12,632,667
9,361,893
3,270,774
Note: 2020 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 profits makes a profit in a year, no more than 2% of the Company’s
pre-tax profits (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 directors and independent directors receive a transportation allowance. Independent
directors receive fixed remuneration and do not participate in the distribution of directors'
remuneration, and the remaining directors do not receive fixed remuneration, but participate in the
distribution of directors' remuneration. Based on the analysis of performance evaluation results, the
Remuneration Committee will report the Board of Directors and make extra recommendations, which
will serve as a reference for the remuneration of individual 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,
education/experience, professional ability, the duties and responsibilities for the position in question,
and the Manager’s actual contribution to the Company’s operational objectives. The remuneration
ratio is calculated after comprehensive consideration of the target achievement rate, P&L, operating
efficiency, and contribution to come out a reasonable remuneration, moreover the remuneration
system of directors and managers is reviewed timely in accordance with the actual operating
conditions, relevant laws and regulations.
‧ The Company’s procedure for determining remuneration not only takes into account the Company’s
overall operational performance but is also based on financial indicators (individual performance
achievement rate and contribution to the Company's profits), non-financial indicators (such as
leading specific projects or subordinate departments have major deficiencies in legal compliance and
operational risk matters). And the third factor is one’s actions in response to climate change (such as
using recycled raw materials for products and other environmental protection measures, reducing
carbon emissions per unit). Relevant salaries 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, profits 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.
38
Implementation of Corporate Governance
3.3
3.3.1 Board of Directors
‧The term of the 13th committee ran from June 22, 2018 to August 27, 2021.
‧The term of the 14 th committee ran from August 27, 2021 to August 26, 2024.
‧There were seven Board meetings during 2021 (A). Director’s attendance records are as shown below:
Attendance
in Person (B)
7
Attendance
Rate (%)[B/A]
Sheng-Hsiung Hsu
Remarks
By Proxy
Name
100%
Title
0
Chairman
Vice-
Chairman
Jui-Tsung Chen
Director
Director
Director
Binpal Investment Co., Ltd.
Representative: Wen-Being Hsu
Kinpo Electronics, Inc.
Representative: Chieh-Li Hsu,
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
Independent
Director
Sheng-Hua Peng
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
Duh-Kung Tsai
7
7
7
6
7
6
7
7
7
6
7
6
7
2
5
0
0
0
1
0
1
0
0
0
1
0
1
0
0
0
100%
100%
100%
86%
100%
86%
100%
100%
100%
86%
100%
86%
100%
100%
100%
Took office on
August 27, 2021
Left office on
August 27, 2021
Title
Name
‧In 2021, Independent Director’s attendance records are as shown below:
1st
Meeting
★
●
2nd
Meeting
●
●
3rd
Meeting
●
●
4th
Meeting
●
●
Min-Chih Hsuan
Duei Tsai
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Wen-Chung Shen
Duh-Kung Tsai
●
●
●
●
●
5th
Meeting
●
●
6th
Meeting
●
●
●
7th
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 an Audit Committee rather than 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.
39
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
18th Meeting
(13th Term)
2021.3.26
19th Meeting
(13th Term)
2021.5.12
The agendas, the nature of conflicting interests, and the voting outcome
• Approved the proposal of donation to the Hsu Chauing Social Welfare & Charity
Foundation “Hsu Chauing Foundation”
Chair Sheng-Hsiung Hsu asked Independent Director Min Chih Hsuan to act as a Deputy
Chair to preside at this meeting for discussion and voting on this proposal. To avoid
conflict of interest, Directors Sheng-Hsiung Hsu and Chieh-Li Hsu, who are th e spouse
and the son to Chair Li-Chu Tsai of Hsu Chauing Foundation, recuse and exclude
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 Chair, there was no objection raised and
the resolution was adopted unanimously by the remaining Directors present
• Approved the first mid-year employees’ bonus of the year 2021
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 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 Chair, no objection was raised and the
resolution was adopted unanimously by the remaining Directors present.
• 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. In order to avoid conflict of interest, these Directors recused
themselves from discussion and voting on this proposal. Upon solicitation of comments by
the Chair of the meeting, no objection was raised and the resolution was adopted
unanimously by the remaining Directors present.
• Approved employees’ salary adjustment of the year 2021
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 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 Chair, no objection was raised and the
resolution was adopted unanimously by the remaining Directors present.
40
Board of
Directors
Meeting
21st Meeting
(13th Term)
2021.8.12
The agendas, the nature of conflicting interests, and the voting outcome
• Approved the Directors’ Remuneration for the year 2020
Chair Sheng-Hsiung Hsu asked the Independent Director Min-Chih Hsuan to act as a
Deputy Chair to preside over this meeting for discussion and voting on this proposal.
Since an interested party relationship existed, 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, Anthony Peter Bonadero and
Sheng-Hua Peng) recused and excluded themselves from discussion and voting on this
proposal to avoid conflict of interest. Upon solicitation of comments by the Deputy Chair,
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 2021
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, an interested party relationship exists among any Directors and any
agenda proposals, such Directors shall recuse and exclude themselves during 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, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the Chair, there was no objection raised and
the resolution was adopted unanimously by the remaining Directors present.
• Approved the appointment of Chief Strategy Officer
An interested party relationship existed in Director Jui-Tsung Chen. In order to avoid
conflict of interest, the Director excused himself from discussion and voting on this
proposal. Upon solicitation of comments by the Chair of the meeting, there was no
objection raised and the resolution was adopted unanimously by the remaining Directors
present.
• Approved the appointment of President
1st Meeting
(14th Term)
2021.8.27
An interested party relationship existed in Director Chung-Pin Wong. In order to avoid
conflict of interest, the Director excused himself from discussion and voting on this
proposal. Upon solicitation of comments by the Chair of the meeting, there was no
objection raised and the resolution was adopted unanimously by the remaining Directors
present.
• Approved the appointment of the term 5th remuneration committee members
An interested party relationship exists in Independent Directors Min Chih Hsuan, Duei
Tsai and Wen-Chung Shen. In order to avoid conflict of interest, these Independent
Directors rerecused themselves from discussion and voting on this proposal. Upon
solicitation of comments by the Chair of the meeting, there was no objection raised and
the resolution was adopted unanimously by the remaining Directors present.
• Approved the compensation of Employee bonuses in cash 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 shall recuse 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, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the Chair, no objection was raised and the
resolution was adopted unanimously by the remaining Directors present.
2nd Meeting
(14th Term)
2021.11.11
41
Board of
Directors
Meeting
The agendas, the nature of conflicting interests, and the voting outcome
• Approved the proposal for 2021 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 recuse 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, recused themselves from discussion and voting on this
proposal. Upon solicitation of comments by the Chair, 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
Method of
evaluation
Once a year
From June 1, 2020 to May 31, 2021
Board of Directors, Functional Committees (Including Audit Committee, Remuneration
Committee), individual Directors
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. Alignment with the goals and mission 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.
42
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 as 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” were adopted to strengthen their operation efficiency. The
performance of evaluation results for the year 2021, 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.
43
3.3.2
Audit Committee
‧The Company's Audit Committee is composed of three independent directors.
‧The term of the 2nd committee ran from June 22, 2018 to August 27, 2021.
‧The term of the 3rd committee ran from August 27, 2021 to August 26, 2024.
‧There were five Audit Committee meetings during 2021 (A). The attendance records of the Independent
Directors are as follows:
Title
Name
Convener
Committee Member Duei Tsai
Min-Chih Hsuan
Committee Member Wen-Chung Shen
Committee Member Duh Kung Tsai
▓ Duties of the Audit Committee
Attendance in
Person (B)
5
5
2
3
By Proxy
0
0
0
0
Attendance Rate (%)
[B/A]
100%
100%
100%
100%
Remarks
-
-
Took office on
August 27, 2021
Left office on
August 27, 2021
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 Chairman, managerial officer, and
accounting officer.
11. Business Report, proposal for distribution of profits or covering of losses.
12. Other material matters as may be required by this Corporation or by the competent authority.
44
▓ The major audit items of the Audit Committee in 2021 were as follows:
1. 2020 Financial Statement, Business Report, Proposal for distribution of profits.
2. To change of independent auditor.
3. To evaluate the CPAs’ independence and competence for performing the financial report audit.
4. Election of the Committee convener and Chair of the 3nd Audit Committee
5. Appointment of the Chief Strategy Officer, President, Accounting Officer, Financial Officer and
Internal Audit Officer.
6. A matter bearing on the personal interest of the Director and Manager.
7. A material monetary loan and providing of Corporate Guarantee Letter.
8. A material asset transaction.
9. Assessment of the design and operation effectiveness of the internal control system.
10. The defects, irregularities, and the status of corrections in the internal control system.
11. Annual audit plan for the year 2022.
12. Compliance with the relevant laws and regulations by the Corporation.
▓ 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 Securities and Exchange Act:
Board of
Directors
Meeting
Content of discussion and actions taken in response
Matters
listed in
Item 5,
Article 14 of
the
Securities
and
Exchange
Act
Not approved by
the Audit
Committee but
receiving the
consent of more
than two-thirds of
all directors.
1. To approve 2020 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
2. To approve the Business Report for the year 2020
3. To approve the proposal for Distribution of Earnings
for the year 2020
4. To approve the change of independent auditor
5. To evaluate CPAs’ independence and competence of
performing financial report audit.
6. To approve the proposal of donation to the Hsu
Chauing Social Welfare & Charity Foundation
7. To approve the proposal for providing Corporate
Guarantee Letter to Quanta Computer Inc.
8. To approve the Internal Control System Statement
for the year 2020
V
V
V
V
V
V
V
V
18th Meeting
(13th Term)
2021.3.26
No
No
No
No
No
No
No
No
▲Resolution adopted by the Audit Committee (2021.3.26):
Upon solicitation of comments by the Chair, there was no objection 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:
・Except for motion 6
Upon solicitation of comments by the Chair, there was no objection raised and the
45
Board of
Directors
Meeting
Content of discussion and actions taken in response
Matters
listed in
Item 5,
Article 14 of
the
Securities
and
Exchange
Act
Not approved by
the Audit
Committee but
receiving the
consent of more
than two-thirds of
all directors.
resolution was adopted unanimously by the Directors present.
・Motion 6
Chair Sheng-Hsiung Hsu asked Independent Director Min Chih Hsuan to act as a
Deputy Chair to preside at this meeting for discussion and voting on this proposal. To
avoid conflict of interest, Directors Sheng-Hsiung Hsu, and Chieh-Li Hsu, who are the
spouse and the son to Chair Li-Chu Tsai of Hsu Chauing Foundation, recuse and
exclude 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 Chair, there was no
objection raised and the resolution was adopted unanimously by the remaining
Directors present.
1.To approve the release of non-competition
restrictions for the managers
2.To approve a fund loan to 100% owned subsidiary
Compalead Eletrônica do Brasil Indústria e Comércio
Ltda.
3.To approve fund loan to 100% owned subsidiary
Compal Eletrônica Da Amazônia Ltda.
V
V
V
▲Resolution adopted by the Audit Committee (2021.5.12):
No
No
No
19th Meeting
(13th Term)
2021.5.12
Upon solicitation of comments by the Chair, there was no objection 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 relationship existed between Directors Jui-Tsung Chen, Chung-
Pin Wong. In order to avoid conflict of interest, these Directors recused themselves
from discussion and voting on this proposal. Upon solicitation of comments by the
Chair of the meeting, there was no objection raised and the resolution was adopted
unanimously by the remaining Directors present.
‧Motion 2 and 3
Upon solicitation of comments by the Chair, there was no objection raised and the
resolution was adopted unanimously by the Directors present.
1.To approve loan to Henghao Technology Co. Ltd.
2.To approve loan to Unicom Global, Inc.
3.Proposal for providing a Corporate Guarantee Letter
for Henghao Optoelectronics Technology (KunShan)
Co., Ltd., a sub-subsidiary of the Company, to
Huawei Device Co., Ltd., to be resolved.
V
V
V
No
No
No
▲Resolution adopted by the Audit Committee (2021.8.12):
Upon solicitation of comments by the Chair, there was no objection 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 Chair, there was no objection raised and the
resolution was adopted unanimously by the Directors present.
46
21th Meeting
(13th Term)
2021.8.12
Board of
Directors
Meeting
Content of discussion and actions taken in response
Matters
listed in
Item 5,
Article 14 of
the
Securities
and
Exchange
Act
Not approved by
the Audit
Committee but
receiving the
consent of more
than two-thirds of
all directors.
1. Election of the Committee convener and the Chair
of the 3nd Audit Committee
2. To approve the appointment of Chief Strategy
Officer
3. To approve the appointment of President
4. To approve the appointment of Accounting Officer
5. To approve the appointment of Financial Officer
6. To approve the appointment of Internal Audit
Officer
▲Resolution adopted by the Audit Committee (2021.8.27):
・Motion 1:
V
V
V
V
V
V
No
No
No
No
No
No
Min-Chih Hsuan is elected by all members as the convener and Chair of the Audit
Committee.
・Except for motion 1
Upon solicitation of comments by the Chair, there was no objection 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:
Not applicable (No request of the consent of the Board of Directors)
・Motion 2 and 3
An interested party relationship existed in Directors Jui-Tsung Chen and Chung-Pin
Wong. In order to avoid conflict of interest, the Director excused himself from
discussion and voting on this proposal. Upon solicitation of comments by the Chair of
the meeting, there was no objection raised and the resolution was adopted
unanimously by the remaining Directors present.
・Except for motion 2 and 3
Upon solicitation of comments by the Chair, there was no objection raised and the
resolution was adopted unanimously by the Directors present.
1. Proposal for providing Corporate Guarantee Letter
to Lenovo PC HK Limited
2. To approve the proposal of application for open
tender
3. To propose for approval of annual audit plan for the
year 2022
V
V
V
No
No
No
▲Resolution adopted by the Audit Committee (2021.11.11):
Upon solicitation of comments by the Chair, there was no objection 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 Chair, there was no objection raised and the
resolution was adopted unanimously by the Directors present.
1st Meeting
(14th Term)
2021.8.27
2nd Meeting
(14th Term)
2021.11.11
(2) With the exception of the aforementioned matters, other matters not approved by the Audit
Committee but receiving the consent of more than two-thirds of all Directors: None.
47
2. 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:
Audit
Committees
Meeting
13rd Meeting
(2nd Term)
2021.3.26
14th Meeting
(2nd Term)
2021.5.12
15th Meeting
(2nd Term)
2021.8.12
2nd Meeting
(3rd Term)
2021.11.11
4th Meeting
(3rd Term)
2022.3.15
Content of discussion
Results
1. Report on operational
status of the internal audit
activities
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
2.To approve the Internal
Control System Statement
for the year 2020
1. Report on operational
status of the internal audit
activities
The proposal was approved by the Audit
Committee and will be resolved by the Board of
Directors
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
1. Report on operational
status of the internal audit
activities
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
1. Report on operational
status of the internal audit
activities
2. To propose for approval of
annual audit plan for the
year 2022
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
The proposal was approved by the Audit
Committee and will be resolved by the Board of
Directors
1. Report on operational
status of the internal audit
activities
2.To approve the Internal
Control System Statement
for the year 2021
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
The proposal was approved by the Audit
Committee and will be resolved by the Board of
Directors
48
Audit
Committees
Meeting
5th Meeting
(3rd Term)
2022.5.11
Content of discussion
Results
1. Report on operational
status of the internal audit
activities
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
(3) Summary of the communications between the Independent Directors and CPA:
Audit
Committees
Meeting
13rd Meeting
(2nd Term)
2021.3.26
Content of discussion
Results
1. To approve the 2020 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
‧ Explanation of key audit items
‧ Explanation of statements and major
The proposal was
approved by the Audit
Committee and will be
resolved by the Board
of Directors
accounting items
4th Meeting
(3rd Term)
2022.3.15
1. To approve the 2021 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
‧ Explanation of key audit items
‧ Explanation of statements and major
The proposal was
approved by the Audit
Committee and will be
resolved by the Board
of Directors
accounting items
49
3.3.3 Corporate Governance Implementation and Deviations from the “Corporate Governance Best Practice Principles for TWSE/TPEX Listed Companies”
Yes
Yes
Assessment criteria
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
litigation?
Actual governance
Deviation and causes
of deviation
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 litigation.
No deviations were
found
2. Is the Company constantly
Yes
The Company keeps track of the identities of its ultimate beneficiaries 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?
Yes
shareholding positions (including 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.
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-
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
No deviations were
found
No deviations were
found
No deviations were
found
50
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
insider rules.
III. Assembly and obligations of
the Board of Directors
1. Has the board devised and
Yes
implemented policies to ensure
the diversity of its members?
The Company has rules in place such as the “Corporate Governance Guidelines” and “Rules for
Director Elections” 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
23.
2. Apart from the Remuneration
Yes
Apart from the Remuneration and Audit Committees, the Company also has a Sustainability
Committee and Audit
Committee, has the Company
assembled other functional
committees at its own
discretion?
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
No deviations were
found
51
Assessment criteria
3. Has the Company established
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
renewal? )
Actual governance
Yes
Yes
No
Summary description
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
determining individual Director’s compensation and their nomination for the next office term.
Deviation and causes
of deviation
No deviations were
found
▓ The performance of evaluation results in 2021 are as follows:
Items
Individual board members
Board of Directors
Audit Committee
Remuneration Committee
Total average
4.60
4.80
5.00
4.68
Evaluation level
Good
Good
Excellent
Good
4. Is the independence of
Yes
external auditors assessed on a
regular basis?
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 Act 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
52
Actual governance
Yes
Yes
No
Summary description
Vice-President Cheng-Chiang Wang was appointed to lead and supervise affairs pertaining to
corporate governance in accordance with the Company’s “Corporate Governance Guidelines,"
while the Board of Directors secretariat was assigned as the Company’s responsible unit to handle
corporate governance affairs.
Deviation and causes
of deviation
No deviations were
found
Vice-President 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, producing minutes of board meetings and shareholders 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 2021, refer to
page 57.
Yes
The Company addresses its stakeholder relations on its corporate website, Sustainability 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 was also 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
Assessment criteria
IV. Is the listed or OTC Company
equipped with competent
and sufficient corporate
governance personnel and is
its designated corporate
governance Director
responsible for corporate
governance related matters
(including but not limited to
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
53
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
suppliers)?
VI. Does the Company engage a
Yes
share administration agency
to handle shareholder
meeting affairs?
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
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 an 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?
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/).
‧ The Company’s CSR to publicly disclose the Company's ESG actions.
(URL: https: //www.facebook.com/compalCSR).
No deviations were
found
No
The Company’s financial reports were not able to be announced and filed within two months
after the end of the fiscal year. 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 end
of the fiscal year.
54
Actual governance
Summary description
•
•
•
•
•
•
•
•
•
•
Employee rights and care for employees (page 58)
Code of Conduct for Directors, managers, and employees (page 58)
Investor relations (page 59)
Supplier relations and execution of customer policy (page 59)
Stakeholders’ interests (page 59)
Risk management practice and framework (page 59-62), Risk analysis (page 195-198)
Purchasing liability coverage for the Company’s Directors, supervisors, and managers (page
63)
Continuing education for Directors and managers (page 63-66)
Succession plan for Board members and key Management team (page 67)
Certificate and qualification acquisition status for personnel (page 67-68)
Deviation and causes
of deviation
No deviations were
found
Assessment criteria
VIII. Does the Company offer
No
Yes
Yes
other vital information
(including but not limited to
employee rights, employee
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?
55
Assessment criteria
Actual governance
Deviation and causes
of deviation
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 encouraged its 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 2021, members of
the Board of Directors completed a total of 108 hours of training.
• In 2021, the amendment to the “Audit Committee Charter", “Rules Governing the Scope of Powers of Independent Directors", “Remuneration Committee Charter",
“Procedures for Ethical Management and Guidelines for Conduct", “Rules Governing Financial and Business Matters Between this Company and its Affiliated
Enterprises" and “Rules for Elections of Directors" were proposed to accommodate the business needs and the requirements of applicable laws and regulations.
• In 2022, establish a Sustainability Committee, the enactment to the “Sustainability Committee Charter ", “Risk management policy of Compal Group ", the
amendment “Corporate Social Responsibility Best Practice Principles" to “Sustainable Development Best Practice Principles" were proposed to accommodate the
business needs and the requirements of applicable laws and regulations.
• In 2022, the amendment to the “Articles of Incorporation", “Procedures for Acquisition or Disposal of Assets", “Procedures for Lending Funds to Other Parties",
and “Rules and Procedures of Shareholders Meeting" were proposed to accommodate the business needs and the requirements of applicable laws and regulations.
• In the “8th Round of Corporate Governance Evaluations” by TWSE, Compal was placed in the top 21%-35% of listed companies.
• We uploaded the Annual Report 18 days before the shareholders’ meeting.
56
▓ The results of Compal’s corporate governance unit operations for 2021 is as follows:
‧ Compiled and prepared relevant documents in need for the Audit Committee and the Board of Directors’
Meetings in accordance with pertinent regulations and operational/financial request; and be responsible for
coordination with proposal making relevant units.
‧ The amendment to the “Audit Committee Charter”, “Rules Governing the Scope of Powers of Independent
Directors”, “Remuneration Committee Charter”, “Rules Governing Financial and Business Matters Between this
Corporation and its Affiliated Enterprises”, “Procedures for Ethical Management and Guidelines for Conduct”,
“Rules for Elections of Directors” 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 and shareholders’
meeting 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.
‧ 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
well as 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 encouraged its Directors to take part in the courses on pertinent
regulations offered by subsidiary Kinpo Group Management Consultant Company or by external professional
organizations.
‧ The Company disclosed and announced important financial and operational information in conjunction with the
events of the Board of Directors Meetings, Shareholders Meetings. In addition, the Company has also held
financial result announcement conferences at least twice every year, and was invited to participate in
domestic/foreign brokers’ investor forums on a quarterly basis, to help investors understand the Company’s
financial and operational results.
‧ 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.
‧ Edit contents on the chapter for corporate governance of Annual Report– responsible for the collection of data,
compilation of stock affairs data, and 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 offered liability coverage for directors, supervisors and managers. The amount for their
liability insurance in 2021 came to USD 50,000 thousand, which was roughly equivalent to TWD 1,390,000
thousand. Vital information relating to their liability insurance was reported to the Board of Directors on the
latest meeting of the Board of Directors.
‧ The Corporate Governance Officer took 21 hours of continuing education. For the exact education program,
please see page 65-66.
57
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 breaks 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' interests.
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 centers: Places where employees may hold club activities, exercise, and socialize.
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.
‧
‧
▓ Code 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 sign a "Confidentiality Pledge"
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.
58
▓ 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.
In 2021, Compal proactively participated in online investor forums and investor conference calls, hosted by either
local or foreign brokers every quarter, 13 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 supply partners,
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
The Company has established the risk management policy, which was approved by the Board of Directors on
March 15, 2022. The core values of the policy are complying with the laws and regulations of the place where it
operates, and setting up the risk control procedures in accordance with the international standard systems. The
Company expect that the policy can identify the operation risk in advance. Therefore, the Company can adopt
appropriate assessment and actions to transform, reduce or prevent the risks.
(1) 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
59
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. Follow the local policies and regulations of important production bases. For
example: the relevant guidelines of the "The Basic Norms of Enterprise Internal Control" issued by the
Ministry of Finance of the People's Republic of China in conjunction with the China Securities Regulatory
Commission, the National Audit Office, the China Banking Regulatory Commission and the China Insurance
Regulatory Commission.
(2) Establish the risk control procedures in accordance with the international standard systems.
In accordance with the methodology of ISO 31000, the Company perform the identification, analysis, and
evaluation processes to confirm the risk issues, then compile the risk issues in five major areas: strategy,
finance, operations, legal compliance, and environment. Finally, the Company uses the "Risk Analysis Matrix"
to prioritize risk management by considering the Company's resources.
The Internal Control System has developed by the Company to consider the organization structures,
authorization and the control points of operation procedure, and it has been 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. The Company achieve the goal of implementing internal control through the internal control
self-assessment and performance assessment.
Besides, the company has refer to the Three Lines of Defense (TLD) model for risk management issued by the
IIA and the company operate practice to set up organization and procedures of risk management.
(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 195).
(4) If an important operating activity is identified with a potential urgent risk, it can be reported to the supervisor
immediately for proper prevention. 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.
(5) The future plan of risk management in the following five years.
a. Continue to manage the "new type of risk" refer to the GRPS research report issued by WEF.
According to the Global Risks Perception Survey carried out by the World Economic Forum every year, we
evaluates key issues such as economy, geopolitics, environment, society and technology, from the
60
"likelihood" and "impact" of the event, and we also take new types of risks into management scope such as
climate change or contagious disease.
b. Digital transformation to enhance corporate governance
As business models become more complex, manual post-check become outdated. We use the information
system continuously to save labor cost, enhance the effectiveness of the Three Lines of Defense (TLD) model
through the IT techniques and most importantly to achieve the goal of warning in advance.
c. The future plan for the personnel of Three Lines of Defense (TLD) in the following five years.
The number of international professional certificates related to risk management is expected to increase from
2 in 2021 to 12 in 2022. At the same time, the professional certificate holders of CPA/CIA/CISA aim to increase
from 36% to more than 70% after five years.
61
Board of Directors, Audit
Committee, Auditing Office
(Level 3)
‧ Auditing Office:
Risk inspection,
evaluation, supervision,
improvement and
reporting
‧ Board of Directors, Audit
Committee:
Decision-making and
ultimate control over risk
evaluation
2. Risk management framework
Front line unit
(Business organizer)
(Level 1)
Risk review and control
(Executive management meeting)
(Level 2)
‧ Finance Department
‧ Operation Team
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
‧ Business
‧ Corporate investment review
‧ Changes in policy and law
‧ Changes in technology and industry
‧ Changes in corporate image
‧
Investment, subsidiary and M&A
benefits
departments/centers
(Note 1)
‧ Common departments
(Note 3)
‧ Executive management meeting
‧ Subsidiaries monitoring and
management report
‧ Expansion of factory, production site
‧ Business
and equipment
‧ Centralized purchase or sale
departments/centers
(Note 1)
‧ Common departments
(Note 3)
‧ Monthly operating meeting
‧ Production and marketing
meeting
‧ Equity transfer involving Directors,
‧ Share administration
supervisors, and major shareholders
affairs
‧ Change of management
‧ Board of Directors
‧ Share administration affairs
‧ Head of Finance/Accounting
‧ Litigation and non-contentious cases
‧ Product risk management
‧ Legal affairs
‧ Handling of product safety incidents
‧ Managers of all levels
‧ Business groups/centers (Note 2)
‧ Other operational affairs
‧ Personnel behavior, ethics, and
‧ Managers of all levels
‧ Personnel Evaluation Committee
conduct
‧ HR and Administration
‧ Rules (including SOPs), internal
‧ Managers of all levels
control system and compliance with
regulations
‧ Legal Affairs Office
‧
Investment Planning and
Management Office
‧ Finance
‧ Accounting
‧ HR and Administration
‧
IT
‧ Board of Directors Meetings
‧ Share administration
affairs
‧ Secretary of the Board of
Directors
‧ Legal Affairs Office
‧ Prevention of insider trading
‧ Managers of all levels
‧
Information security management
‧ Managers of all levels
‧
‧
‧
Insider Trading Prevention Office
Information Security (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: PCBG 1, PCBG 2, PCOBG, GOBG, SDBG, etc.
3. Common departments: Finance, Accounting, HR and Administration, Investment Planning and Management Office, Legal Affairs
Office, etc.
62
▓ 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 2021 are listed as follows:
Insured Individuals
Insured amount
Insured Period
Date of submission to the
Board of Directors
Directors,
Supervisors and
Managers
USD 50,000,000
(Equivalent to TWD 1,390,000,000)
From:2021.11.21
To: 2022.11.21
2022.2.10
▓ 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 2021 include:
▓ Continuing education for directors:
Date of
training
Name
Title
Organized by
Course title
Chairman
Sheng-Hsiung
Hsu
2021/05/14 Securities and Futures
Institute
2021/11/12 Securities and Futures
Institute
Strategy and Management of Business
Model Upgrade and Transformation
Risks and opportunities of climate
change and net zero emission policies to
business operations
Vice-Chairman Jui-Tsung Chen 2021/04/09 Compal Electronics, Inc. Global economy, market, and foreign
2021/05/14 Securities and Futures
Institute
2021/11/12 Securities and Futures
Institute
2021/11/17 Taiwan Securities
Association
2021/12/17 Compal Electronics, Inc.
Director
Chieh-Li Hsu
2021/01/19 Kinpo Group Management
Consultant Company
Director
Charng-Chyi
Ko
Director
Sheng-Chieh
Hsu
2021/05/14 Securities and Futures
Institute
2021/11/12 Securities and Futures
Institute
2021/05/14 Securities and Futures
Institute
2021/11/12 Securities and Futures
Institute
2021/05/14 Securities and Futures
Institute
2021/11/12 Securities and Futures
Institute
2021/11/19 Taiwan Corporate
Governance Association
63
exchange market outlook
Strategy and Management of Business
Model Upgrade and Transformation
Risks and opportunities of climate
change and net zero emission policies to
business operations
Corporate Governance 3.0-Blueprint for
Sustainable Development
Seminar on "Global Economic and
Market Outlook for the year 2022"
Seminar on "Global Economic and
Financial Market Outlook for the year
2021"
Strategy and Management of Business
Model Upgrade and Transformation
Risks and opportunities of climate
change and net zero emission policies to
business operations
Strategy and Management of Business
Model Upgrade and Transformation
Risks and opportunities of climate
change and net zero emission policies to
business operations
Strategy and Management of Business
Model Upgrade and Transformation
Risks and opportunities of climate
change and net zero emission policies to
business operations
New venture company (funding)
regulations- on the requirements,
Hours of
training
3
3
1
3
3
3
1
2
3
3
3
3
3
3
3
Title
Name
Date of
training
Organized by
Course title
Hours of
training
Director
Yen-Chia Chou 2021/05/14 Securities and Futures
Institute
2021/11/12 Securities and Futures
Institute
operation and development of close
companies
Strategy and Management of Business
Model Upgrade and Transformation
Risks and opportunities of climate
change and net zero emission policies to
business operations
Director
Chung-Pin
Wong
Director
Ming-Chih
Chang
Director
Sheng-Hua
Peng
2021/04/09 Compal Electronics, Inc. Global economy, market, and foreign
2021/07/29 Taiwan Institute for
Sustainable Energy
2021/07/29 Taiwan Institute for
Sustainable Energy
2021/10/28 Taiwan Institute for
Sustainable Energy
2021/10/28 Taiwan Institute for
Sustainable Energy
2021/11/26 Taiwan Corporate
Governance Association
2021/12/17 Compal Electronics, Inc.
exchange market outlook
Implement ESG to build the first brand of
sustainable finance
Build an ESG platform and implement
sustainability for finance
Construction and Prospect of Circular
Economy of China Steel Group
Zero-carbon and Circular Economy from
Technology Innovation
An important subject of corporate
mergers and acquisitions- The topic of
the prevention and exemption of insider
trading liabilities.
Seminar on "Global Economic and
Market Outlook for the year 2022"
2021/04/09 Compal Electronics, Inc. Global economy, market, and foreign
2021/12/17 Compal Electronics, Inc.
exchange market outlook
Seminar on "Global Economic and
Market Outlook for the year 2022"
2021/04/09 Compal Electronics, Inc. Global economy, market, and foreign
2021/12/07 Taiwan Stock Exchange
Corporation
2021/12/17 Compal Electronics, Inc.
Independent
Director
Min Chih
Hsuan
2021/03/24 Taiwan Corporate
Governance Association
2021/09/27 Taiwan Corporate
Governance Association
Independent
Director
Duei Tsai
2021/04/14 Securities and Futures
Institute
2021/08/04 Securities and Futures
Institute
2021/08/31 Taipei Exchange
2021/09/01 Taipei Exchange
2021/09/01 Securities and Futures
Institute
2021/09/17 Taiwan Corporate
Governance Association
64
exchange market outlook
2021 Cathay Sustainable Finance and
Climate Change Summit Forum
Seminar on "Global Economic and
Market Outlook for the year 2022"
The directors and supervisors how to
supervise the Company work well in
crisis and risk management.
Corporate Governance and Securities
Regulations
Corporate Governance for Green Energy
Innovation Business Model and Green
Finance New Trends
Digital transformation of traditional
industries
Decoding the Sustainability DNA of SMEs
- 2021 OTC Upgrade Sustainability Online
Forum
Investment for Sustainability Fully
Launched - 2021 OTC Upgrade
Sustainability Online Forum
The 13th Taipei Corporate Governance
Forum
Introduction of Company management
disputes case and Commercial event trial
law
3
3
1
1
1
1
1
3
1
1
1
1
6
1
3
3
3
3
2
2
3
3
Title
Name
Date of
training
Organized by
Course title
2021/10/14 Taiwan Corporate
Governance Association
2021/11/19 Taiwan Corporate
Governance Association
2021/11/26 Taiwan Corporate
Governance Association
Independent
Director
Wen-Chung
Shen
2021/10/08 Taiwan Securities
Association
2021/11/19 Taiwan Corporate
Governance Association
2021/11/26 Taiwan Corporate
Governance Association
2021/12/08 Taiwan Securities
Association
The business strategy and corporate
governance in response to the world's
unsustainable risks, on the perspective of
Covid-19
New venture company (funding)
regulations- on the requirements,
operation and development of close
companies
An important subject of corporate
mergers and acquisitions- The topic of
the prevention and exemption of insider
trading liabilities.
Model of Wealth Inheritance: : A case
study on Transfer in Ownership of
Securities and Real Estate
New venture company (funding)
regulations- on the requirements,
operation and development of close
companies
An important subject of corporate
mergers and acquisitions- The topic of
the prevention and exemption of insider
trading liabilities.
New Development in ESG: Evidence
from Sustainable Management Strategy
of Securities / Financial Industry
▓ Continuing education for managers
Date of
training
Name
Title
Organized by
Course title
Vice-President Guo-Dung Yu
Vice-President Hou-Chun Liu
2021/12/17 Compal Electronics, Inc.
2021/04/09 Compal Electronics, Inc.
Global economy, market, and foreign
exchange market outlook
Seminar on "Global Economic and
Market Outlook for the year 2022"
2021/12/31 Compal Electronics, Inc. Management for the prevention of
Hours of
training
3
3
3
3
3
3
3
Hours of
training
1
1
0.58
Vice-President Cheng-Chiang
2021/04/09 Compal Electronics, Inc.
Wang
2021/12/17 Compal Electronics, Inc.
Corporate
Governance
Officer
Cheng-Chiang
Wang
2021/04/23 Taiwan Corporate
Governance Association
2021/09/07 Taiwan Securities
Association
2021/10/08 Taiwan Securities
Association
2021/11/19 Taiwan Corporate
Governance Association
65
insider trading (for senior managers)
Global economy, market, and foreign
exchange market outlook
Seminar on "Global Economic and
Market Outlook for the year 2022"
The Operation and Merger & Acquisition
Strategy: A Taiwanese Enterprises view
on the Global Politics and Economics
Legal Liabilities & Case Study for
Financial Statement Fraud & Insider
Trading
Model of Wealth Inheritance: : A case
study on Transfer in Ownership of
Securities and Real Estate
New venture company (funding)
regulations- on the requirements,
operation and development of close
companies
1
1
3
3
3
3
Title
Name
Date of
training
Organized by
Course title
2021/11/26 Taiwan Corporate
Governance Association
2021/12/08 Taiwan Securities
Association
2021/12/10 Accounting Research and
Development Foundation
Accounting
Officer
Cheng-Chiang
Wang
2021/12/09-
2021/12/10
Accounting Research and
Development Foundation
Internal Audit
Officer
Chenyi Li
2022/11/03-
2022/11/05
Securities and Futures
Institute
An important subject of corporate
mergers and acquisitions- The topic of
the prevention and exemption of insider
trading liabilities.
New Development in ESG: Evidence
from Sustainable Management Strategy
of Securities / Financial Industry
New trends and new thinking in
evaluating corporate’s ESG sustainable
performance
“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.
Pre-employment Training Course for
Corporate Internal Auditors
Hours of
training
3
3
3
12
18
66
▓ 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 Vice-President Chung-Pin Wong, who joined Compal in 1989 and
has over 30 years’ 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 Vice-President
to Executive Vice-President Positions and were appointed to lead the three business groups: PCBG, SDBG,
and GOBG, respectively. They were also elected to serve on the 13 th Board of Directors in 2018. By this,
Compal has successfully completed the succession of its Board members and key management team that
symbolizes the transition to a new generation. The abovementioned top management of the Company were
re-elected as the 14th term of Board of Directors at the 2021 Annual General Shareholders Meeting.
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
transparency
CPA qualification
USCPA qualification
ASEANCPA qualification
Senior Securities Specialist
Securities Specialist
Futures Specialist
Securities Investment Trust and Consulting Professional
Certified Basic Proficiency for foreign exchange personnel
Certified Basic Proficiency for credit officer
Certified Product insurance salesman
Chartered Financial Analyst
Certified Internal Auditor - Taiwan
Certified Internal Auditor
Certified Information Systems Auditor
Business Continuity Management Lead Auditor
Information Security Management Lead Auditor
Information Technology Service Lead Auditor
Greenhouse gas emissions Auditor
67
5 persons
2 persons
1 person
8 persons
4 persons
3 persons
3 persons
1 person
1 person
1 person
1 person
3 persons
3 persons
1 person
1 person
2 persons
1 person
1 person
Name of certificate
No. of persons
Personal Information Management Lead Auditor
Environmental management systems Auditor
Occupational health and safety management Lead Auditor
Lean Six Sigma Black Belt
Project Management Professional
Certified SCM Master
1 person
1 person
1 person
1 person
1 person
1 person
68
3.3.4 Composition, Responsibilities, and Operations of the Remuneration Committee
1. Professional Qualifications and Independence Analysis of Remuneration Committee Members
Conditions
Identity Name
Convener
Independent
Director
Wen-Chung
Shen
Independent
Director
Min Chih
Hsuan
Independent
Director
Duei Tsai
May 11, 2022
Number of Other
Public Companies in
Which the Individual
Professional Qualifications and Experience
Independence Criteria
is Concurrently
Serving as a
Remuneration
Committee Member
Bachelor of Electrical Engineering Dept.,
National Taiwan University
Chair of Hetuo Investment Co., Ltd.
Director & Executive Vice-President of
Compal Electronics, Inc.
Possesses 30 or more years of work
experience required for the Company's
business, and not been a person of any
conditions defined in Article 30 of the
Company Law.
Honorary Doctorate, National Chiao Tung
University
Bachelor of Electrical Engineering Dept.,
National Chiao Tung University
Chair, Vice-Chair, President and CEO of
United Microelectronics Corp.
Possesses 30 or more years of work
experience required for the Company's
business, and not been a person of any
conditions defined in Article 30 of the
Company Law.
Ph.D., Electrical Engineering, National
Taiwan University
Independent Director of Taiwan High Speed
Rail Corporation & TTY Biopharm Company
Ltd.
Possesses 30 or more years of work
experience required for the Company's
business, and not been a person of any
conditions defined in Article 30 of the
Company Law.
˙ Compliance with
independence requirement
(note)
˙ The person him/herself or
his/her spouse or relatives
within the second degree (or
in the name of others) hold
5,151,000 shares of the
Company at a ratio of 0.11%.
˙ Compliance with
independence requirement
(note)
˙ The person him/herself or
his/her spouse or relatives
within the second degree (or
in the name of others) hold 0
shares of the Company at a
ratio of 0%.
˙ Compliance with
independence requirement
(note)
˙The person him/herself or
his/her spouse or relatives
within the second degree (or
in the name of others) hold 0
shares of the Company at a
ratio of 0%.
0
0
2
Note: Compliance with independence requirement: State whether the members of the Remuneration Committee meet the
independence requirement.
˙
Including but not limited to that the person him/herself or his/her spouse or relatives within the second degree have not
worked as the directors, supervisors or employees of the Company or its affiliated enterprises;
˙ Have not worked as a director, supervisor or employee of a company that has a specific relationship (per the provisions of
69
subparagraphs 5~8, paragraph 1, Article 6 of the Regulations Governing the Appointment and Exercise of Powers by the
Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange) with
the Company;
˙ Have not received remuneration by providing business, legal, financial, accounting and other services to the Company or
its affiliates in the last 2 years;
˙ Number of shares of the Company and shareholding ratio of the person him/herself or his/her spouse or relatives within
the second degree (or in the name of others).
2. Responsibility of the Remuneration Committee
•
Formulate and regularly review the policies, systems, standards and results for the performance
evaluation and remuneration of directors (including independent directors) and managers.
• Regularly evaluate and determine the remuneration of directors (including independent directors)
and managers.
The salary and remuneration mentioned above include cash remuneration, stock options,
dividends, retirement benefits or severance payments, various allowances and other measures
with substantial incentives.
3. Attendance of Members at Remuneration Committee Meetings
•
•
•
•
The Company's Remuneration Committee is composed of three Independent Directors.
The term of the 4th committee ran from July 4, 2018 to August 27, 2021.
The term of the 5th committee ran from August 27, 2021 to August 26, 2024.
There were five Remuneration Committee meetings during 2021(A) and the committee member
qualifications and attendance records are as follows.
Title
Name
Attendance
in Person (B)
By Proxy
Attendance Rate (%)
[B/A]
Convener
Wen-Chung Shen
Committee Member Min-Chih Hsuan
Committee Member
Duei Tsai
Committee Member
Duh-Kung Tsai
2
5
5
3
0
0
0
0
100%
100%
100%
100%
Remarks
Took office on
August 27, 2021
Left office on
August 27, 2021
■ The discussion of the Remuneration Committee and the resolution, as well as the actions the Company
has taken in response to any opinions arisen from the Remuneration Committee.
Board of
Directors
Meeting
18th Meeting
(13th Term)
2021.3.26
Resolution Adopted by the Remuneration Committee
1. To approve the proposal of the distribution of compensation to employees and directors
for the year 2020
2. To approve the first mid-year employees’ bonus of the year 2021
▲Resolution Adopted by the Remuneration Committee (2021.3.26):
Upon solicitation of comments by the Chair, there was no objection 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:
Upon solicitation of comments by the Chair, there was no objection raised and the
70
Board of
Directors
Meeting
19th Meeting
(13th Term)
2021.5.12
21th Meeting
(13th Term)
2021.8.12
Resolution Adopted by the Remuneration Committee
resolution was adopted unanimously by the Directors present.
・Motion 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 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 Chair, there was no objection raised and the resolution
was adopted unanimously by the remaining Directors present.
1.To approve the proposal for the appropriated percentage for the remuneration of
employees and Directors of the year 2021
2.To approve employees’ salary adjustment of the year 2021
▲Resolution Adopted by the Remuneration Committee (2021.5.12):
Upon solicitation of comments by the Chair, there was no objection 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:
Upon solicitation of comments by the Chair, there was no objection raised and the
resolution was adopted unanimously by the Directors present.
・Motion 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 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 Chair, there was no objection raised and
the resolution was adopted unanimously by the remaining Directors present.
1.To approve the Directors’ Remuneration for the year 2020
2.To approve 2nd mid-year employees’ bonus for the year 2021
▲Resolution Adopted by the Remuneration Committee (2021.8.12):
Upon solicitation of comments by the Chair, there was no objection 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:
Chair Sheng-Hsiung Hsu asked the Independent Director Min-Chih Hsuan to act as a Deputy Chair to
preside at this meeting for discussion and voting on this proposal. Since an interested party
relationship existed, the Directors (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, Anthony Peter Bonadero and Sheng-Hua Peng) recuse and exclude themselves from
discussion and voting on this proposal to avoid conflict of interest. Upon solicitation of comments
by the Deputy Chair, there was no objection 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, an interested party relationship exists among any Directors and any
agenda proposals, such Directors shall recuse and exclude themselves during discussion
and voting on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung
71
Board of
Directors
Meeting
1st Meeting
(14th Term)
2021.8.27
2nd Meeting
(14th Term)
2021.11.11
Resolution Adopted by the Remuneration Committee
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 Chair, there was no objection raised and
the resolution was adopted unanimously by the remaining Directors present.
1. Election of the Committee convener and the Chair of the 5th Remuneration Committee
▲Resolution Adopted by the Remuneration Committee (2021.8.27):
Wen-Chung Shen is elected by all members as the convener and Chair of the Remuneration
Committee.
▲Action taken by the Company in Response to the opinion of the Remuneration Committee:
Not applicable(No request for consent from the Board of Directors)
1. To approve the compensation of Employee bonuses in cash of the year 2020
2. To approve the proposal for 2021 year-end employees’ bonus
▲Resolution Adopted by the Remuneration Committee (2021.11.11):
Upon solicitation of comments by the Chair, there was no objection 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 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 Chair, there was no objection raised and the resolution was
adopted unanimously by the remaining Directors present.
■ Other notes:
1.
2.
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 the 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
exceeds the remuneration committee’s recommended amount, the circumstances and cause for
the difference shall be specified): None.
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.
72
3.3.5
Corporate Sustainability Development
Assessment criteria
Actual governance
1. Does the Company conduct
Yes
The Company has a dedicated unit responsible for the prevention of insider trading and a
Yes No
Summary description
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?
Sustainability Committee. The Committee consists of members of senior management authorized
by the Board of Directors to oversee affairs pertaining to integrity management and Sustainability
related issues. The Sustainability Committee was established in March 2022, with three members
(including two independent directors) appointed by a resolution of the Board of Directors, and the
Chair of the Committee is President and CEO Chung-Pin Wong. In addition, Compal also has the ESG
Office with designated personnel to handle the promotion of relevant tasks resolved by the
Sustainability Committee. The Sustainability Committee will report to the Board of Directors
regarding the operating status and results of the committee at least once a year.
For the 2021 Corporate sustainability operation and implementation please refer to page 85-87, the
targets and plans of 2022 Corporate Sustainability please refer to page 87-88. The results of
implementation are also disclosed in our Annual Report, Sustainability Report, and on our CSR
sustainability website.
Deviation and causes
of deviation
No deviations were
found
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?
1. Risk identification:
Collect environmental, social and corporate governance issues that stakeholders are concerned
about, and refer to analysis reports on international situations and industry trends, then classified
risk issues into "Strategy," "Finance," "Operation," and "Legal Compliance", "Environment".
2. Risk assessment
Through a risk analysis matrix, the likelihood and impact of risk issues are evaluated respectively,
and ranked by the result of the evaluation. Among them, "supply chain material interruption risk",
"human resource development" and "information security risk" were rated as the top three risk
issues.
No deviations were
found
3. Risk response and management
(1) Supply chain material interruption risk
The Company's revenue continues to grow, and it is highly dependent on the stable supply of
key components. In order to reduce the risk of sluggish materials and increase profitss, the
73
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
Company implements real-time production and precise control of inventory management.
However, the Covid-19 continues to rage and the energy shortages in various countries. The risk
of material outage and production stoppage arising from the model of precise inventory
management is also increasing day by day. Under this circumstance, the Company intends to
take the following countermeasures
a. Continue to strengthen the supply chain information system and improve the platform's
management mechanisms such as demand forecasting, inventory inquiry and delivery
instructions.
b. Strengthen the strategic partnership of key component manufacturers.
c. Big data analysis to grasp the changing trend of raw material market.
d.
In response to the impact of the Covid-19, plan and promote online bidding (inquiry and
price negotiation) and the modularization of the procurement system.
(2) Human resource development
Due to the Company's international strategic planning and cross-industry diversification, the
demand for international talents continues to increase. However, due to the increasing
competition in the industries to which the Company belongs, the impact of child rearing, the
emergence of technology and the change of regulations and standards, the supply and demand
of talents in the market are imbalanced, which makes it difficult to recruit talents for strategic
planning, professional skills and management, and there is a risk of a talent gap or technology
succession in the medium to long term. The following measures will be taken.
a. Complete layout of the succession echelon of strategic management professionals.
b. Excavation and cultivation of high-potential talents.
c. Continuous implementation of bilingual ability and international vision development
education.
d. Evaluate and plan Robotic Process Automation system development
74
Assessment criteria
Actual governance
Yes No
Summary description
(3) Information security risk.
Deviation and causes
of deviation
large
international companies are accelerating
The Covid-19 has led to an increase in the demand for remote work. In order to enhance their
core competitiveness,
their digital
transformation. While during the transition period, they may face information security threats.
It is urgent to strengthen protection against vulnerable links in systems, technologies and
security. Therefore, in accordance with the NIST cybersecurity framework and the international
ISO 27001 framework, the Company promotes the following countermeasures
a. Dedicated units assess risks and ensure security controls and technical protection in a PDCA
model to reduce the likelihood of external network threats.
b. Build information security technology equipment in the intranet, such as anti-virus servers,
hardware firewalls and mail servers to filter external letters, etc.
c. Ongoing internal and external vulnerability scanning and penetration testing.
d. System backup and off-site backup mechanism to ensure uninterrupted operation.
e. Regularly evaluate suppliers' information security protection capabilities to ensure that they
can resist external security threats.
f. Develop awareness of protection for all staff, and implement regular information security
training and drills.
3. Environmental issues.
75
Assessment criteria
Actual governance
Yes No
Summary description
(1) Has the Company established an
Yes
appropriate environmental
management system according to
its industrial characteristics?
(2) Is the Company committed to
improving the efficiency of
resource utilization and using
recycled materials with a low
impact on the environment?
Yes
Compal has established environmental safety policies, and each plant has its own responsible
personnel. Each month, they collect and transfer relevant laws and regulations on environment,
safety and health to relevant personnel, and designate personnel to review the operations and
methods related to laws, and to amend the operations and methods that do not conform to the
regulations. If there is a major change in laws and regulations, it is necessary to change the
Company's relevant policies, objectives and targets, and amendments should be proposed at any
time.
In order to grasp the possible operational challenges faced by Compal in terms of environment, we
are gradually building, managing and implementing the environmental management system, all
factories have adopted ISO 14001 and ISO 45001, conduct internal audit every year, and obtain
third-party verification to ensure the effective operation of the management system, effectively
tracking and controlling various environmental performance, actively practicing waste reduction,
promoting zero landfill of regulation update waste, providing various complaint pipelines, and
continuously and stably providing products and services recognized by stakeholders. All production
processes and products of Compal shall comply with the requirements of environmental protection
laws and regulations. We shall continue to improve and effectively manage our operation. In 2021,
no violation of the environment laws or regulations has occurred.
Throughout the "product lifecycle," 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 added 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.
76
Deviation and causes
of deviation
No deviations were
found
No deviations were
found
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
(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?
No deviations were
found
In 2022, recycled materials will be fully introduced into commercial laptops, and the weight ratio of
recycled materials for each model must be more than 5%. Electricity intensity is 320 kWh per
million revenue, 47 kWh lower than per million revenue in 2020. In addition to the introduction of
ISO 50001 energy management system and continuous maintenance in Kunshan Plant 3, Chengdu
Plant and Pingzhen Plant, Kunshan Plant 2 is expected to pass the verification in 2022, and set a
long-term goal of 100% renewable energy use in 2050, and continue to promote and maintain Solar
power generation system, outsourcing renewable energy.
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.
Continue to follow the TCFD framework to identify risks and opportunities, incorporate strategic
planning and risk management mechanisms, and further identify financial shocks and plan the use
of capital.
According to the results of identification, evaluation and sorting of risks and opportunities, the
operating decision-making committee will select three risks and three opportunities for calculating
financial risks, which are:
Risk 1. Importing alternative recycled raw materials, increasing the cost of R&D technology
transformation.
Action 1. In the design stage, Compal considers waste reduction and resource reuse, introduces
environmentally friendly materials and low-polluting alternative materials, and introduces
many Regulation update design patterns that can reduce the use of natural resources and
increase recycling.
Actively develop and introduce recycled plastics and biodegradable plastics in electronic
77
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
products to meet international trends and meet customer expectations.
Risk 2. In response to external requirements, the increase in the use of renewable energy will
increase operating cost.
Action 2. The global awareness of environmental protection is gradually on the rise. Green
production is the most important part of maintaining environmental resources and
industrial competitiveness. Compal continues to abide by its excellent green production
methods, and improves the operation mode of power saving, water saving and waste
reduction.
In 2021, 7,634,710 kWh of photovoltaic power generation and 161,055,833 hydropower
generation renewable energy was purchased.
Risk 3. Improve the energy efficiency standards of various assets and increase operating cost.
Action 3. To make the first step of reducing energy use and reducing the burden on the
environment, we should start from energy conservation. In addition to innovative means
to improve energy efficiency, when energy consumption equipment needs to be replaced
or disposed, we shall select energy-saving products for replacement, provide energy-
saving tips to employees at any time, and actively introduce external guidance units. of
the plants in Pingzhen, Kunshan no. 3 and Chengdu have obtained the ISO 50001 energy
management system certification and to promote equipment networking has been
established for the hope of maximizing the economic benefits of each unit of energy, to
align with the goal of EP100.
Opportunity 1. Actively take sustainability as a way to continuously gain customers' favor.
Action 1. In recent years, climate actions as carbon reduction have been raging like a storm around
the world, and internationally renowned large companies, such as Apple, Google, and
Microsoft, have issued relevant carbon reduction commitments in 2020. Being confronted
by the environmental impacts brought about by those climate changes, Compal has also
78
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
actively invested itself into green product design, plant energy-saving management, and
coping measures to extreme climate by promoting lean production, controlling energy
use, reducing useless waste in production process, and creating higher economic benefits
as well as environmental protection
Opportunity 2. Assist suppliers in low-carbon transformation and reduce procurement cost affected
by climate change.
Action 2. Compal uses the ISO 14001 environmental management system to evaluate the
environmental policies and implementation of suppliers in the new supplier
selection criteria, and adds a green management evaluation form for new supplier
management and selection.
In 2021, although face-to-face supplier meetings could not be held due to the impact
from Covid, CSR and supplier promotion matters were released in the CPS announcement
system to persistently sustain good communication with suppliers. The content is related
to the RBA VAP v7.0 updated category, conflict minerals, Compal supplier CSR system
introduction, and green environment supply chain promotion. We will work together with
our supply chain partners to enhance climate resilience and sustainable development.
Opportunity 3. Introduce smart manufacturing processes to improve production and distribution
efficiency, thereby reducing operating cost
Action 3. Although Compal Electronics is not a high-energy consuming industry, it is also actively
working to improve the energy efficiency of its production lines. In addition to promoting
the automation of production lines, it has also eliminated all difficulties in building its
equipment networking system to connect different equipment usage conditions at
various stages, which is convenient for remote monitoring and management.
We attach a climate-related risk and opportunity identification table. Please see page 89.
79
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?
Deviation and causes
of deviation
No deviations were
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 (scope 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 cost through autonomous carbon
reduction or even turning risks into opportunities to ensure the Company’s sustainability.
Set a long-term goal of using 100% renewable energy by 2050. Through power saving and renewable
energy procurement, it is estimated that 50% renewable energy can be used in 2030, and promote
the management method of UL 2799 zero landfill waste, and actively reduce waste generation.
Achieve a 50% reduction target in 2025 (base year 2018), pay attention to water resources in the
basin, and reduce water consumption by 10% (base year 2018)
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
Scope 1 greenhouse gas emissions
Scope 2 greenhouse gas emissions
Scope 3 greenhouse gas emissions
Total water consumption
Total general waste
Total hazardous industrial waste
2020
23,311.811
191,286.178
19,687.174
2,543,277
36392.17
1,284.61
Unit: Tons
2021
20,558.972 (Note)
188,939.931 (Note)
24,633.557 (Note)
2,554,897
33861.86
1,664.91
Note: Please refer to the Company’s Sustainability Report for the assurance data and details.
4. Social issues
(1) Has the Company formulated
management policies and specific
management plans regarding
Yes
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 are all followed the human and labor
No deviations were
found
80
Assessment criteria
social issues in accordance with
relevant laws and regulations and
International Human Rights
Conventions?
Yes No
Summary description
Actual governance
Deviation and causes
of deviation
rights of our employees by the Universal Declaration of Human Rights and Ten Principles of The
United Nations Global Compact. We also align our actions with the RBA and its Code of Conduct.
Human Right Policies in Compal
‧ Ensure equal job opportunities in the Company
Respect and be fair to employees, no matter what their race, belief, skin color, gender,
nationality, age or physical characteristics is .
‧ Provide a safe and secure work environment without harassment
When the employees encounter any threat, abuse, exploitation, or compulsive behavior at
work, they can report any illegal matter anonymously through the complaint mailbox.
‧ Attendance system and forbiddance of forced Labor
All employees are protected by a collective bargaining agreement at the time they sign their
contracts of employment. The Company plans its attendance system according to local laws
and regulations. Forced labor is strictly forbidden and we protect the rights and interests of
employees
‧ Establish a relationship-management communication platform
When employees face any unreasonable affairs in the Company, such as unsatisfying with the
human resources system, working environment, benefits, or facing forced
labor,
discrimination, sexual harassment etc., they can report the issues via following internal website
or e-mail. The Company commits to the confidentiality and protect the employees from
retaliation
If employees would like to complain about the situation that happened in Compal, such as
human resources system, occupation, employee benefits, and forced labor, discrimination,
sexual harassment and so on of any unreasonable incidents, they can report via following
internal website or e-mail, we commit to the confidentiality and prevent retaliation
Respecting to the rights of our employees, the Company revise the policies and rules in line with the
latest regulations, and announces them to all its employees.
81
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?
Yes No
Yes ■ Employee Benefits
Actual governance
Summary description
The Company allocates 0.05% of its turnover to welfare funds every year, and has employee
welfare committees to handle various welfare matters, including marriage, funeral, and childbirth
allowance, social activities allowance employee health and travel allowance, festival gift
certificates, birthday gift certificates, cultural and leisure allowance and other welfare matters.
■ Employee compensation
Pursuant to the Articles of Association, when the Company profits makes a profits in a year, no more
than 2% of the Company’s pre-tax profits (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.
Deviation and causes
of deviation
No deviations were
found
(3) Does the Company provide
Yes
employees with a safe and healthy
work environment? Are
employees trained regularly on
safety and health issues?
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.
No deviations were
found
The Company organizes health and safety training for employees on a regular basis as a means to
prevent occupational accidents and ensure workplace safety. In addition, we analyze the causes of
occupational accidents and provide suggestions and measures to improve the situation. In 2021,
3,033 employees had completed their training for a total of 8,379 hours, and the number of
occupational accidents among employees was 157, involving 157 employees (accounting for 0.2% of
the total number of employees).
82
Assessment criteria
(4) Has the Company established an
effective career development
training program for its
employees?
Yes No
Yes
(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 rights and interests of
consumers?
Actual governance
Summary description
Annual training programs are tailored to suit the needs of different employees, based on the
Company’s business strategies, policy guidelines, and career roadmaps, including newcomer
training, core competencies, managerial competencies, and common competencies courses. The
Company constantly aims to establish itself as a learning organization and coaching management.
In 2021, a total of 673 training sessions (both internal and external) were organized; these courses
delivered 170,617 hours of training and 59,307 persons enrolled.
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 to 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. We offer, a complaint channel for stakeholders
on the official website of Compal.
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 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, gradually convert the version to IEC 62368-1, 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.
Deviation and causes
of deviation
No deviation was
found
No deviations were
found
(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?
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 behavior 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
No deviations were
found
83
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes No
Summary description
RBA’s code of conduct: management of Labor, Health and Safety, Environment and Ethics along
with an additional clause on the non-use of conflict minerals. The policy has been effective ever
since.
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 organization?
For the existing qualified suppliers, Compal collects SAQ (self-assessment questionnaire) as the first
step of audit every year. The Company also holds supplier conferences to promote the contents
including the attempt to revise the environmental control substance management standard and
upgrade the system, the promotion of Compal CSR objectives and international initiatives. In
addition, 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 completed 35
supplier on-site audits and tracking improvement plans in China in 2021.
The Company has issue published annual CSR reports (The name will be changed to Sustainability
Report in 2022) for its stakeholders on its website since 2010. The Sustainability report was first
certified by an external institution in 2012. The Company adopted Global Reporting Initiative’s
most updated guidelines (GRI Standards, published in 2018) to prepare its Sustainability report.
The report was compiled based on issues concerning stakeholders and the Company’s key
objectives. In 2021, we added Sustainability Accounting Standards Board (SASB) standards to
disclose relevant information. To ensure the credibility of reported contents, the Company
commissioned SGS to provide independent assurance based on the criteria specified in AA 1000,
GRI Standards and SASB Standards. After their assurance, the report was certified as meeting AA
1000 Standard Type 2, mid-level accountability and the GRI Standards Core Requirements.
The Company was awarded Awards by the Taiwan Institute for Sustainable Energy for its “ Taiwan
Corporate Sustainability Report Award” for many years. In 2021, we received the Platinum Award of
this award.
No deviations were
found
84
▓ The implementation results of 2021 Sustainable Development
Item
Results
1. We were awarded the 7th 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 six consecutive years and in the
FTSE4Good TIP Taiwan ESG Index for the fourth consecutive years. We were re-selected as a
constituent stock of "Taiwan High Salary 100 Index" and "Taiwan Employment 99 Index".
3. We were ranked the Gold Award in the Technology R&D of 2021 Happiness Enterprise
online voting by 1111, Human resource agency, 339th of Fortune Top 500, 1314th of Forbes
Top 2000, 5th in the "Top 2000" Manufacturing Industry by CommonWealth Magazine, 64th
of CommonWealth Magazine’s Top1000 in China, Taiwan and Hong Kong, and
CommonWealth magazine’s Taiwan.
4. The Compal CSR report in 2021 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 of TCSA.
5. In order to fulfill the corporate social responsibility and strengthen the Company's ESG
information disclosure, the Company officially launched the Task Force on Climate-related
Financial Disclosure (TCFD) and the Sustainability Accounting Standards Board (SASB)
projects, and the disclosure information of the sustainability report in 2021 will follow the
TCFD and SASB.
6. We were ranked Taiwan Best of Germany iF Product Design Award from 2017-2021 and 6th
of iF Worldwide Design Award.
1. We comply with human rights and conflict mineral standards. In 2021, we implemented e
policy of "Non-use of conflict minerals’ policy and completed a survey (CMRT) of 1,014
suppliers’ conflict minerals with a completion rate of 100%.
2. To enforce RBA audit and management on Tier- Suppliers, our Chinese plants have audited
35 suppliers on-site and tracked the corrective actions.
3. To maintain a good communication relationship with suppliers continuously, Company held
an online supplier conference in 2021. The content is about "The update of global green
product regulations and key points of implementation", "RBA VAP v7.0 update items",
"Conflict minerals", "Compal supplier management system introduction" and "Supply Chain
green environmental advocacy". 349 staff members of suppliers participated online.
1. We participated in the Carbon Disclosure Project (CDP) climate change and water safety
questionnaire. Both were ranked at management tier in 2021.
2. With starting from the source reduction, promoting waste reduction and recycling, NJC,
KS1, and CQA plants continue to promote UL2799 management systems. In addition, KS2
are added to obtain UL2799 zero waste landfill platinum certification.
3. Continuously promote ISO 50001 energy management system in the KS 3, KS 4, CD and PCP
Plants to improve energy efficiency, use 168,690,543 kWh of green electricity, accounting
for 42.6% of the Group's electricity consumption, and reduce greenhouse gas emissions by
144,201,147.032 Kg CO2e.
4. We participated in the "Waste 3C Recycling Activities" of customers; at which, 121 Compal
employees joined the event.
5. Responding to the sustainable development goal of the United Nations "SDGs 14 Life
below Water ", the 62 employees participated in Forgotten Coast Beach Enterprise Joint
Beach Cleanup action.
Corporate
Governance
Supply Chain
Management
Environmental
Sustainability
Green Product
1. The 85 products that have passed the US Evaluation Guidelines (EPEAT 2018); in which, 37
products have obtained the Gold level certification, 17 products have obtained the Taiwan
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Item
Results
Environmental Protection Label, 26 products have obtained the TCO Label, and 46 products
have obtained the CECP label. There are also 4 models of LCD monitors that have obtained
the CECP label and 4 models that have obtained the TCO label.
2. 139 notebook products and 4 LCD monitors have obtained the latest Energy Star
certification.
3. 69 notebook products have completed the full substance disclosure announcement.
4. Halogen-free products list: 102 types of laptops, 23 types of smart phones, and 2 types of
5G devices.
1. Donated TWD 100 million to the Tzu Chi Foundation to purchase vaccines to help Taiwan
Covid-19 pandemic prevention; and donated TWD 1 million of medical supplies to assist
Vietnam in pandemic prevention.
2. Compal donated TWD 2 million to the HCI Foundation to expand social care for the
vulnerable. In 2021, 1,557 employees participated in various public welfare activities of the
HCI Foundation, and donations exceed TWD 5 million.
3. To promote a pluralistic and equal society, and chartered venue to support the release of
documentary "Among Us" sponsored by Compal, which help the public know more about
autistics.
4. Hold a series of activities of “Charity can’t stop”, cooperate with social enterprises and
social welfare groups in public welfare, and donate materials to help vulnerable children
and farmers.
˙Unceasing Charity by Compal I: 666 colleagues donated mid-autumn moon cake sets to
1,255 vulnerable school children in Taoyuan, Pingtung, Changhua and Hsinchu.
˙Unceasing Charity by Compal II: 474 colleagues donated 989 moon cakes to vulnerable
school children in Taitung.
˙Unceasing Charity by Compal III: Compal's " Pomelo " Project has been realized via
practical actions as we supported local agricultural products and helped farmers in
relief.
5. Compal held the second "Healthy Charity" event, 186 employees reached the standard and
donated 186 kilograms of Taiwanese rice and 186 packs of noodles to help 186 children
from poor families in 5 schools.
6. Compal co-organized the first “Taipei Science and Technology Cup Love Earth Charity Road
Run” in Taipei Neihu Technology Park. To advocate national sports, improve the physical
and mental health of employees in Neihu Tech Park, take care of socially vulnerable people
and to build a beautiful, good and healthy society.
7. Sponsored the "Kangaroo Project" from the Rural Center of Fu Jen University for the 3rd
year, for the after-school tutoring center and community teacher training program at
Linkou Dayuan, Sanduo Elementary School and Yuli Bookstore.
8. Promoted SDGs4 Quality Education of UN, sponsored the "Newspaper Reading Project" in
Pingtung Region and donated 210 tablet computers to 12 schools in Taoyuan for
participating the "Technology and Innovation Education Project" and benefiting 1,180
students. In addition, donated Taiwan World Vision 110 pieces to assist remote digital
education in remote rural Taitung during the pandemic. In 2021, a total of 340 mobile
digital devices will be donated to improve Children’s high-quality education.
9. We regularly hold volunteer service activities. In 2021, we had 4 volunteer service activities
with 57 participants. We also held blood donation activities. (228 employees donated 440
units of blood, a total of 110,000 cc).
Social Welfare
Employee
Care
1. We take care of the health of employees, on-site consultations with physicians are
arranged every week, and health promotion management is carried out for those with
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Item
Results
high cardiovascular risk. The achievement rate is 78.7% in 2021, and is above 90.5% on
January, 2022 (the achievement of the target was postponed due to the impact of Covid-
19).
2. Implement Covid-19 prevention program
˙Establish a Covid-19 prevention team, formulate a pandemic prevention plan, implement
pandemic prevention measures, conduct risk management, activate a diversion
mechanism, and maintain organizational operations.
˙About 166 colleagues attended Covid-19 prevention tracking management.
˙Provide rapid test for new recruits to screen high-risk individuals, reduce risks, and
ensure the health of colleagues.
3. To improve fertility rates, we provide a TWD 66,000 maternity subsidy to employees for each
newborn baby. 251 Compal babies were born in 2021. Compal has provided more than
3,500 birth rewards for 11 consecutive years, with a total amount exceeding TWD 230
million.
4. We continue Employee Assistance Program (EAP) in 2021. EAP counseled a total of 83 cases
about family and workplace relations issues.
5. We organize various employee health promotion activities, including charity runs, health
lectures, and various club activities to take care of employees' physical and mental health.
˙Compal’s 10K team for the Neihu Charity Running Activity: 30 colleagues attended the
10K team.
˙”Exercise 132 Commitment” activities: Encourage colleagues to develop the good habit of
exercising regularly. 186 colleagues achieved the exercise, with a total of more than 744
hours of exercise.
The programs
of personnel
training
Compal is a member of the GOLF academic alliance. In 2021, we successfully admitted 128
students to participate in one-year internship. Also, we had 166 students to register online
courses and host 16 on-campus business internship sessions with a total of more than 1,000
students participating.
▓ The targets and plans of 2022 Sustainable Development
NO.
1
2
Targets
Strengthen the functions
of the Board of Directors
and establish a
sustainable governance
structure
Focus on green
manufacturing and
carbon reduction and
waste reduction, towards
the sustainable goal of
2050 net zero carbon
emissions.
Plans
(1) The Company has a Sustainability Committee, which holds meeting and report to
the Board on a regular basis. Sustainability
(2) We promote Business Continuity Management, improve risk management policy
and risk management organization.
(3) We emphasize corporate integrity management and anti-corruption, enhance
employee awareness and strengthen relevant training.
(1) We introduce Task Force on Climate-Related Financial (TFCD) Disclosures to
accurately assess climate-related risks and opportunities.
(2) We increase the proportion of renewable energy used.
(3) We introduce energy management system, reduce electricity consumption level
by 1% compared to the previous year.
(4) We introduce digital hazardous substance test report and prepare hazardous
substance assessment reports efficiently through a cloud-based data stream; the
digital hazardous substances report shall be accounted for more than 5%.
(5) We follow the design guidelines of environmental protection, sustainable
development and renewable energy to develop environment-friendly products.
The proportion of recycled materials each project for commercial notebook
computer products shall reach 5% in the year 2021.
87
NO.
3
4
5
6
Targets
Plans
Focus on climate change
and continue to respond to
the United Nations 30
(ocean) x 30 (land) plan.
(1) We recognize importance to biodiversity, protect plants in the blue carbon
ecosystem, and participate in mangrove wetland conservation plans.
(2) We organize beach clean-up activities, continuously carry out environment
protection education and jointly advocate ocean protection actions
Enhance the Company's
power of sustainability and
strengthen disclosure of ESG
information.
(1) We upgraded the Sustainability Committee (formerly Corporate Social
Responsibility Committee) to a functional committee. Set up a functional
committee - The Sustainability committee.
(2) We implement Compal's vision of sustainable management and establish a
Promote gender equality, a
healthy workplace
environment, and care for
employees' family and
workplace balance.
Promote high-quality
education, eliminate the
urban-rural gap, develop
digital technology, and
inherit local culture.
competent ESG ecosystem.
(3) We strengthen our Sustainable Supply Chain and implement Sustainable Supply
Chain Management project.
(1) We promote gender equality in the workplace.
(2) We carry out health promotion management for colleagues whose physical check-
up are in the middle and high-risk group of cardiovascular disease. The event
achievement rate is 80%.
(3) We pay attention to the health and safety of employees, promote health
promotion Programs, and care for employees to have a balanced life at home and
at work. Continue to promote EAP Employee Assistance Program.
(4) We hold health projects since 2019 to achieve a win-win goal for employee health
and public welfare participation.
(1) We support the HCI Foundation's care activities for vulnerable school
children in rural areas. Responding to the UN Sustainable Development
Goals (Sustainable Development Goals, SDGs); at which, the 3rd health and
well-being and the 4th quality education are the main axes of
implementation.
(2) For the fourth year, we cooperated with the Rural Education Center of Fu Jen
University on the "Kangaroo Project" to enhance the quality of teaching and
afterschool learning program in rural areas.
(3) For the 15th year we carried out the "Compal Reading Volunteer Program"
and promote reading education in rural areas.
(4) We promote sustainable education for school children, SDG 4.
(5) We enhance the medical care and nursing of the elder people in rural
communities.
(6) We reduce inequality, and care about education rights for the vulnerable.
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▓ Climate-related risk and opportunity identification table
Type
Risk and Influence
‧
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 requirements. There are also possibilities that suppliers close down their
plants or reduce the production due to environmental issues, which will lead to unstable
supply and indirectly influence the efficiency of our assembly line.
In the administrative measures issued by the state, large electricity consumers must set up
renewable energy power generation equipment, or replace them with energy storage,
purchase of renewable energy certificates, and payment of cash, which may result in an
increase in operating cost in the short term.
Transfer
of Risk
‧
Technology
Adaption and Opportunity
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,
introduced energy storage equipment in the new base, Escalating energy productivity and saving
energy expenses to cut down cost
2. The price fluctuations of the oil and electricity will influence the operation cost directly. Therefore,
we effectively control the operation cost through the erection of renewable energy devices and the
boost of energy management ability.
Products are faced with stricter instructions, regulations, and standards. New materials
might influence reliability.
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.
‧
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,
clients may transfer their orders.
‧
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 issues and poor attendance
of employees, and damage to plants and machines due to floods.
‧
Chronic
Climate transformation is likely to worsen the air, cause drought, increase the frequency of
heatwaves, change water quality, and affect employees’ health.
Concrete
Risks
We can 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.
1. 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.
2. We promote knowledge on climate change and rescue exercises and enforce medical resources
preparation and epidemic prevention exercises to improve the health and safety awareness of
employees.
89
6.
If the Company has established the corporate Sustainable Development principles based on “Sustainable
Development Best Practice Principles for TWSE/TPEx Listed Companies," please describe any
discrepancy between the Principles and their implementation:
■ The Company has revised the “Compal Corporate Sustainable Development Best Practice Principles”
based on “Corporate Sustainable Development Best Practice Principles for TWSE/TPEX Listed
Companies." An “ESG Office” has also been introduced specifically for the purpose of promoting
Corporate Governance, environmental sustainability, public welfare, and information disclosure. The
Company has adopted the principles of RBA by including corporate sustainability in its overall business
plan, thereby making sure that everything it does confirms with RBA. The Sustainability Committee
reports its progress regularly to the Board of Directors, and ESG Office publishes annual Sustainability
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 2021,
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 consumption
and greenhouse gas emission, the Company has detailed planning and implementation since 2017. The
90
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. Kunshan Plant 2 is expected to obtain certification in
2022.
■ 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 RBA
Code of Conduct. Under this commitment, upstream suppliers are bound to comply with international, national,
and local regulations with respect to all their activities.
Due to the Covid-19, the supplier conference were conducted on-line in 2021, relevant laws and regulations
were announced in the COMPAL Supplier Design Collaboration Portal 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 2021. 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 tours, inviting our
employees, supply chain partners and collaborative social welfare groups to participate in environmental
education and two beach clean-ups. 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 muster positive
energy to solve society's issues. In 2021, Compal collaborated with the Yu-Cheng Social Welfare
Foundation/Jixian Sheltered Workshop, I Can Sheltered Workshop, Hanner Family, Taiwan Mountain and
Maritime Protection Society, and employees have donated more than TWD 800,000.
91
■ 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 “2021 Blood donation activity”: 288 people participated in and
donated 440 bags of blood, totaling 110,000 cc.
Compal co-organized the first “Taipei Science and Technology Cup Love Earth Charity Road Run” in Taipei Neihu
Technology Park.
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: Dayuan, Guanyin, and
Yuli Bookstore.
■ 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 extracurricular 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, Haibin Elementary School in Taoyuan and Guoling Elementary School in Yilan
during public holidays to accompany children in their reading activities. As of the end of 2021, the volunteers
had assisted 6,543 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.
“It turns out to be you” 251 colleagues serve as the Little Teachers of Heart Hope. 47 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 people move forward and carry out the goal and plan written in the
letter together.
■ Social welfare
(1) Budget sponsorship
‧
‧
‧
Donated TWD 100 million to the Tzu Chi Foundation to purchase vaccines to help Taiwan Nti-epidemic; and
donated TWD 1 million of medical supplies to assist Vietnam in epidemic prevention
Donated TWD 2 million to the HCI Foundation to expand social care for the disadvantaged.
Sponsoring of budgets for college volunteer clubs
92
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. In 2021, 18 college clubs applied for sponsorship. Due to the impact of the new crown
epidemic, 2 college clubs completed the project and 54 student volunteers participated in sponsored
volunteer activities in 2021, for which the Company contributed a sum of TWD 142,000 that benefited 143
children.
Sponsoring of budgets for Compal Sunshine Scholarship
The "Compal x Sunshine Scholarships" has entered its 23rd year, which provide "Outstanding Computer
Talent Scholarships" and "Computer Excellence Scholarships" 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 City Volunteer
Fire Brigade Fourth Brigade, Taiwan District of Kiwanis International, Taiwan Institute for Sustainable
Energy, Kaohsiung Medical University Donation Fund National Taipei University,, Chou Ta-Kuan Cultural &
Educational Foundation, Kaohsiung Public Library, Spinal Cord Injury Foundation, National Policy Research
Foundation, Gap of Learning & Field, Taitung Sustainable Development Society, National Taiwan University,
A sum of TWD 5,306,000 was donated to the above mentioned entities in 2021.
‧
‧
(2) Donation of supplies
‧
‧
‧
Compal has the “Education-industry Collaboration Program Playing Plan” with the Hsu Chao-Ying
Foundation In 2021, Hsu Chao-Ying Foundation and the Compal Electronics had a press conference for the
“Education-industry Collaboration Program Playing Plan”. Compal donated 210 tablets to the following 12
elementary schools: Shaking Elementary School, Gaoshu Elementary School, Ronghua Elementary School,
Aliao Elementary School, Lingyun Elementary School, Wugou Elementary School, Yitan Elementary School,
Chishan Elementary School, Gangxi Elementary School, Zhulin Elementary School, Chaodong Elementary
School, Xinpi 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 enable more school children to learn without interruption, Compal donated 110 tablet PCs to
participate in the public welfare project of World Vision's "2021 Fighting the Epidemic Together - Distance
Learning for Disadvantaged Children." World Vision's Taitung District Office distributed the tablets to
Guanshan Center, Chenggong Center, Taitung Center, Jinlun Center, and Lanyu Center to help the children
and families that have been sponsored by World Vision for a long time.
Initiated by the Hsu Chauing Social Welfare & Charity Foundation, the Children’s Day Wish Gift Collection,
joined by colleagues from Compal and New Kinpo Group, has already stepped into fourth year. In 2021, 42
Compal colleagues have taken part in activities to help disadvantaged children from 3 to 13 years old and
prepare exclusive gifts for Children's Day.
(3) COMPAL "Little Ceramist - Charity Sale. Love Without Boundaries"
COMPAL headquarters held the "Little Ceramist - Charity Sale. Love without Distance" activity. It showed the
works of children in the ceramic art class, an art class opened by HCI every year for children, the proceeds from
this charity sale will support the promotion of maker education. 20 COMPAL colleagues responded to the
charity sale and bought 30 works, raising TWD 16,500 to pass on their love without distance.
93
■ 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. 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 causes.
‧
‧
‧
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.
(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
94
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 by 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.
Industrial waste: Industrial waste other than hazardous industrial waste is collected and treated by
certified contractors.
b.
95
‧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
m
e
a
s
u
r
e
s
i
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r
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s
k
m
a
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o
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f
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t
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t
/
p
r
e
v
e
n
t
i
v
e
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 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.
96
3.3.6
Ethical Corporate Management
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 its 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?
2. Has the Company 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 prevent unethical
behavior accordingly which
at least covers the
preventive measures for
the behavior in paragraph
Yes No
Yes
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 as well. The
Board of Directors and the management have issued "The statement of compliance with the Ethical
Corporate Management Best Principles," committing themselves to business integrity.
Deviation and causes
of deviation
No deviations were
found
Yes
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
‧ Prohibition against insider trading and rules of confidentiality
Furthermore, the “Information Security Policy” has introduced measures to prevent violation of
commercial secrets.
No deviations were
found
97
Yes No
Assessment criteria
2, Article 7 of the “Ethical
Corporate Management
Best Practice Principles for
TWSE/GTSM Listed
Companies”?
3. Does the Company stipulate
Yes
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.
2.
Yes
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?
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
Actual governance
Summary description
Deviation and causes
of deviation
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 a Pledge of 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 behavior.
No deviations were
found
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
98
No deviations were
found
Yes No
Assessment criteria
corporate management
policy and plan to prevent
unethical behavior as well
as its supervision of the
implementation?
Actual governance
Summary description
employees with the aforementioned guidelines and thereby facilitate the promotion of honest
management.
Status of Operation and Implementation in 2021:
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 1,043 suppliers
with transaction records, 1,012 have signed the RBA Code of Conduct commitment or completed
the RBA Code of Conduct questionnaire, making for a signing rate of 97.03%. In addition, 10,309
employees completed 17,302 hours of integrity management related training, including:
Deviation and causes
of deviation
3.
Yes
Does the Company have
any policy that prevents
conflict of interest, and
channels that facilitate the
report of conflicting
interests?
Courses
New Employee Orientation
On-job Training for New Employee
New Employee Orientation
Compal CSR Training
Compal Management of the prevention of insider trading
Attendances
1,359
1,553
117
7,279
1
Hours
2,015
8,542
702
6,042
1
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
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
99
No deviations were
found
Assessment criteria
Yes No
4.
5.
III.
1.
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
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
Yes
Yes
Yes
Actual governance
Summary description
behavior. 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 performed 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.
Deviation and causes
of deviation
No deviations were
found
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 behavior 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
No deviations were
found
100
2. Has the Company
Yes
Assessment criteria
malpractice? Does the
Company assign dedicated
personnel to investigate
the reported malpractice?
Yes No
related checks.
Actual governance
Summary description
Deviation and causes
of deviation
Yes
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.
established standard
operating procedures for
the investigation of
malpractice reports,
follow-up measures after
investigation, and the
relevant confidentiality
mechanism?
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, Sustainability reports and “Investor Relations-corporate
governance” and the “CSR- Sustainable Management- Compal's code of Conduct” section of its
website.
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.
No deviations were
found
No deviations were
found
Yes
3.
IV
1.
V
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."
101
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
‧Rules for Elections 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
‧Sustainability Committee Charter
‧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
‧Sustainable Development 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
‧Risk management policy of Compal Group
102
3.3.8 Other Important Information Regarding Corporate Governance
Please refer to the Company’s website→ CSR
https: //www.compal.com/csr/en/default.aspx
‧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 Overview
‧Customer Relations
‧Supplier Relations
‧Investor Relations
103
3.3.9
Internal Control Systems
1. Statement of the Internal Control System
Compal Electronics, Inc.
Statement of the Internal Control System
Date: March 15, 2022
The Company states the following with regard to its internal control system during fiscal the year 2020,
based on the findings of a self-assessment:
1. The Company is fully aware that establishing, operating, and maintaining an internal control system
is 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, though, 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 (“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, 2021 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
15, 2022, 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)
104
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, August 27, 2021
■ Place: No. 581, Ruiguang Rd., Neihu District, Taipei City 11492, Taiwan
■ Major Resolutions:
(1) Ratified the Business Report and Financial Statements for 2019.
(2) Ratified the Distribution of Earnings for 2019.
(3) Approve the amendment to the “Rules for Elections of Directors”.
(4) Election for the 14th Term of Directors
・New Directors are:
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
・New Independent Director are:
Min-Chih Hsuan, Duei Tsai, Wen-Chung Shen
(5) Approval of the release of non-competition restrictions for Directors.
■ Post-meeting Execution:
(1)
The 14th Term of Directors approved by the Ministry of Economic Affairs on September 23, 2021
2. Board meetings
Date
17th Meeting
(13th Term)
2021.2.25
18th Meeting
(13th Term)
2021.3.26
Major resolutions
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 authorize 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
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
105
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 the 14th term of candidates list of Directors
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 the Hsu Chauing Social Welfare & Charity Foundation
16. Approved the first mid-year employees’ bonus of the year 2021
17. Approved the proposal for providing Corporate Guarantee 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 the amendment to the “Rules for Elections of Directors”
2. Approved the amendment to the “Rules Governing the Scope of Powers of Independent
Directors”
3. Approved the amendment to the “Remuneration Committee Charter”
4. Approved the amendment to the “Rules Governing Financial and Business Matters Between
this Corporation and its Affiliated Enterprises”
5. Approved the amendment to the “Procedures for Ethical Management and Guidelines for
Conduct”
19th Meeting
(13th Term)
2021.5.12
6. Approved the release of non-competition restrictions for the managers
7. Approved the release of non-competition restrictions for Directors
8. Approved employees’ salary adjustment of the year 2021
9. Approved the proposal for the appropriated percentage for the remuneration of employees
and Directors of the year 2021
10. Approved the targets and plans of Corporate Social Responsibility for the year 2021
11. Approved fund loan to 100% owned subsidiary Compalead Eletrônica do Brasil Indústria e
Comércio Ltda.
12. Approved fund loan to 100% owned subsidiary Compal Eletrônica Da Amazônia 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 authorize the Company to obtain credit facilities from financial institutions
20th Meeting
(13th Term)
2021.7.30
21th Meeting
(13th Term)
2021.8.12
1. Approved postponing the convention of the 2021 Annual General Shareholders’ Meeting
1. Approved the Directors’ Remuneration for the year 2020
2. Approved 2nd mid-year employees’ bonus for the year 2021
3. Approved the setup of Compal Kaohsiung R&D Center.
4. Approved a loan to Henghao Technology Co. Ltd.
5. Approved a loan to Unicom Global, Inc.
6. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
7. Approved the Company to obtain credit facilities from financial institutions
8. Approved providing a Corporate Guarantee Letter for Henghao Optoelectronics Technology
(KunShan) Co., Ltd., a sub-subsidiary of the Company, to Huawei Device Co., Ltd., to be
resolved.
106
1st Meeting
(14th Term)
2021.8.27
2nd Meeting
(14th Term)
2021.11.11
3rd Meeting
(14th Term)
2022.2.10
4th Meeting
(14th Term)
2022.3.15
1. Election of the 14th Term of Chairman of the Board
2. Election of the 14th Term of Vice-Chairman of the Board
3. Ratified the proposal of donation to Buddhist Compassion Relief Tzu Chi Foundation “Tzu Chi
Foundation”
4. Approved the appointment of Chief Strategy Officer
5. Approved the appointment of President
6. Approved the appointment of Accounting Officer
7. Approved the appointment of Financial Officer
8. Approved the appointment of Internal Audit Officer
9. Approved the appointment of the term 5th remuneration committee members
1. Approved annual audit plan for the year 2022
2. Approved for senior level management change
3. Approved the compensation of Employee bonuses in cash of the year 2020
4. Approved the proposal for 2021 year-end employees’ bonus
5. Approved the Corporate Guarantee Letter to Lenovo PC HK Limited
6. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
7. Approved the Company to obtain credit facilities from financial institutions
8. Approved the proposal of application for open tender
1. Approved senior level management change
2. Approved loan to Kinpo&Compal Group Assets Development Corporation
3. Approved the Company to acquire the common shares of Poindus Systems Corp. by public
tender offer.
4. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
5. Approved authorize the Company to obtain credit facilities from financial institutions
1. Approved the Internal Control System Statement for the year 2021
2. Approved the enactment to the “Risk management policy of Compal Group”
3. Approved the proposal of the distribution of compensation to employees and directors for
the year 2021
4. Approved 2021 Audited Consolidated Financial Statements and Parent Company Only
Financial Statements
5. Approved the Business Report for the year 2021
6. Approved the Business Plan for the year 2022
7. Approved the proposal for Distribution of Earnings for the year 2021
8. Approved the proposal for cash dividends from Earnings for the year 2021
9. Approved the proposal of cash distribution from Capital Surplus
10. Approved the relevant matters regarding the distribution of the year 2021 cash dividends
and cash distribution from capital surplus to shareholders
11. Approved the convention of 2022 Annual General Shareholders’ Meeting
12. Approved the enactment to the “Sustainability Committee Charter”
13. Approved the appointment of the 1st term of sustainability committee members
14. Approved the amendment to the “Corporate Social Responsibility Best Practice Principles”
15. Approved evaluate CPAs’ independence and competence of performing financial report
audit.
16. Approved the first mid-year employees’ bonus of the year 2022
17. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
18. Approved authorize the Company to obtain credit facilities from financial institutions
107
1. Approved the 1Q 2022 Consolidated Financial Review Report
2. Approved the amendment to the “Articles of Incorporation”
3. Approved the amendment to the “Procedures for Acquisition or Disposal of Assets”
4. Approved the amendment to the “Procedures for Lending Funds to Other Parties”
5. Approved the amendment to the “Rules and Procedures of Shareholders Meeting”
6. Approved the release of non-competition restrictions for the managers
7. Approved the release of non-competition restrictions for Directors
8. Approved employees’ salary adjustment of the year 2022
9. Approved the proposal for the appropriated percentage for the remuneration of employees
5th Meeting
(14th Term)
2022.5.11
and Directors of the year 2022
10. Approved the targets and plans of Sustainability for the year 2022
11. Approved fund loan to 100% owned subsidiary Compalead Eletrônica do Brasil Indústria e
Comércio Ltda.
12. Approved fund loan to 100% owned subsidiary Compal Eletrônica Da Amazônia Ltda.
13. Approved authorize the Company to obtain credit facilities from financial institutions
14. Approved the plan to execution of the investment agreement for the project of New Taipei
City RuiFang District Medical and Long-Term Care Facility BOT+BTO Project
15. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institution.
16. Approve to obtain newly issued shares of Raypal Biomedical Co., Ltd. by participating in the
capital injection by cash.
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
Internal Audit Officer
Po-Wen Hsieh
2010.10.27
2021.8.27
Internal position adjustment
108
3.4 Certified Public Accountant (CPA) Fee Information
Unit: TWD Thousands
Accounting Firm Name of CPA
Period Covered
by CPA’s Audit
Audit Fee
Non-audit Fee
Total
Remarks
KPMG
Kuo,Kuan
Ying
Chien, Szu
Chuan
2021.01.01~
2021.12.31
9,600
3,535
13,135
-
Note: Other non-audit fees: Transfer pricing report of $600,000, tax consultation of $2,870,000, and others of $65,000.
(1) Changes in the accounting firm that result in lesser audit fees paid in comparison to the previous
year, which should disclose the amount, percentage, and the reasons: None
(2) Reduction of audit fees by more than 10% compared to the previous year, which should disclose the
amount, percentage, and the reasons: None
109
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
N.A.
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
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.
110
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.
3.7
Changes in Shareholding of Directors, Supervisors, Managers and Major Shareholders
Title
Name
Chairman
Vice-Chairman
And CSO
Sheng-Hsiung Hsu
Jui-Tsung Chen
Director
Director
Director
Binpal Investment Co.,
Ltd.
Representative:
Wen-Being Hsu
Kinpo Electronics, Inc.
Representative:
Chieh-Li Hsu
Charng-Chyi Ko
Director
Sheng-Chieh Hsu
Director
Director and
President
Director
Director
and Executive
Vice-President
Director
Director
and Executive
Vice-President
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Executive Vice-
President
Senior Vice-
President
Senior Vice-
President
Yen-Chia Chou
Chung-Pin Wong
Chiung-Chi Hsu
Ming-Chih Chang
Anthony Peter Bonadero
Sheng-Hua Peng
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
Duh-Kung Tsai
Chen Chang Hsu
Chun-Te Shen
Kuo-Chuan Chen
2021
Up till April 26, 2022
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
0
0
0
0
0
0
(117,000)
0
(3,240,000)
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
111
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
2021
Up till April 26, 2022
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
Chyou-Jui Wei
Wen-Da Hsu
Shi-Kuan Chen
Chi-Wai Wan
Min-Tung Weng
Lo-Chun Lee
0
0
0
0
0
0
Sheng-Hung Li
(9,000)
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Bor-Heng Chen
Chung-Hsing Tan
Ta-Chun Wang
Vice-President Chih-Chuan Cheng
Vice-President Ching-Hsiung Lu
CISO & VP
Po-Tang Wang
Vice-President Tzong -Ming Wang
Vice-President Fu-Chuan Chang
Vice-President Yong-Ho Su
Vice-President
Jyh-Shyan Liang
Vice-President Yi-Yun Chang
Vice-President Hsin-Kung Mao
Vice-President Shih-Hong Huang
Vice-President Yi-Chiang Chiu
Vice-President
Jui-Chun Shyur
Vice-President
Jen-Liang Lin
CLO & VP
Peng-Hong Chan
CGO & AO & VP Cheng-Chiang Wang
Vice-President Cheng-Hui Su
Vice-President Tu-Chuan Tu
Vice-President Chang-Chieh Tien
FO & VP
Guo-Dung Yu
Vice-President Peng Kuee Lau
ice-President
Yau-De Chiou
0
0
0
0
(150,000)
0
(10,000)
(20,000)
0
(5,000)
(160,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
112
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
30,000
(54,000)
0
0
80,000
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
Title
Name
Vice-President Hou-Chun Liu
Vice-President Wu-Ching Chi
Vice-President Hsin-Chung Chen
Vice-President
Jue-Teng Chang
Vice-President Choo-Tain Chiu
IAO
Chenyi Li
Vice-President Yung-Nan Chang
Vice-President Hsin-Hsiung Huang
Vice-President Chiao-Lie Huang
Vice-President Wei-Chia Wang
IAO
Po-Wen Hsieh
2021
Up till April 26, 2022
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
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
-
Note: 1. Independent Director Duh-Kung Tsai left office on August 27, 2021. Independent Director Wen-Chung Shen took office
on August 27, 2021.
2. Vice-President Hou-Chun Liu took office, Vice-Presidents Yung-Nan Chang, Hsin-Hsiung Huang, Internal Audit Officer Po-
Wen Hsieh resigned in 2021, Vice-Presidents Wu-Ching Chi, Hsin-Chung Chen, Jue-Teng Chang, Choo-Tain Chiu were
promoted, Vice-Presidents Chiao-Lie Huang, Wei-Chia Wang resigned in 2022.
3.7.1 Shares Trading with Related Parties:
Name
Reason
for
transfer
Transaction
date
Counterparty
Ching-Hsiung Lu
Gift
2021.08.20
Shao-Hsuan Lu
Counterparty's relationship
with the Company, Directors,
Supervisors, Managers, and
shareholders with more than
10% ownership interest
Father and Daughter
Shares
Transaction
price
100,000
21.55
3.7.2 Shares Pledged with Related Parties: None
113
3.8 Relationship among the Top Ten Shareholders
April 26, 2022 Unit: Shares
Name
Self
Shares held
Shareholdings of spouse
and minors
Total shares held in
the names of others
Shares held
Spouse, relative of
second degree or
closer, and
relationships among
top 10 shareholders
Name Relationship
Shares
Shareholding
Percentage
Shares
Shareholding
Percentage
Shares
Shareholding
Percentage
194,008,470
4.40%
155,706,000
3.53%
151,628,692
3.44%
-
-
-
-
-
-
8,975,401
109,443,000
0.20% 17,107,025
2.48%
-
0.39%
-
0
0
0
0
0
0
0
0
0% None
None
0% None
None
0% None
None
0% None
0% None
None
None
0% None
None
0% None
None
0% None
None
-
-
-
-
0
0% None
None
-
-
0
0
0% None
None
0% None
None
Yuanta/P-shares
Taiwan Dividend Plus
ETF
Silchester International
Investors International
Value Equity Trust
Kinpo Electronics Inc.
Representative:
Sheng-Hsiung Hsu
Cathay MSCI Taiwan
ESG Sustainability High
Dividend Yield ETF。
New Labor Pension
Fund
Silchester International
Investors International
Value Equity Group
Trust
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
Fubon Taiwan Index
high dividend 30 ETF
Silchester International
Investors International
Value Equity Taxable
Trust
81,654,000
1.85%
73,840,000
1.68%
58,321,900
1.32%
53,663,652
1.22%
52,061,000
1.18%
47,964,000
1.09%
-
-
-
-
-
-
114
3.9 Ownership of Shares in Affiliated Enterprises
December 31, 2021 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 Healthcare 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.
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
9,100,000
600,000
100,000,000
20,000,000
3,446,143
-
100.00
-
100.00
-
100.00
-
100.00
-
91.00
-
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
-
9,100,000
-
600,000
-
- 100,000,000
12.80
21.48
27,805,110
5,913,142
29,500,000
100.00
6,000,000
29,000,000
100.00
100.00
10,000,000
100.00
20,014,952
100.00
-
-
-
-
-
-
-
-
-
-
29,500,000
6,000,000
29,000,000
10,000,000
29,060,176
42.44 13,672,854
19.97 42,733,030
3,738,668
33.23 6,230,544
55.38
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
91.00
100.00
52.04
45.58
51.48
100.00
100.00
100.00
100.00
62.63
88.61
75.00
53.55
50.00
15,000,000
50.00
2,772,000
42.00
-
-
-
15,000,000
- 2,772,000
42.00
4,648,322
27.70
656,396
3.91
5,304,718
10,157,730
41,304,504
14,924,070
147,000,000
89,755,495
48,010,000
42,700,000
20.42 7,042,701
19.08 31,930,765
695,000
21.26
-
100.00
-
100.00
-
100.00
53.58 37,000,000
14.15 17,200,431
14.75 73,235,269
15,619,070
0.99
- 147,000,000
89,755,495
-
48,010,000
-
79,700,000
46.42
53,001,000
100.00
-
-
53,001,000
31.61
34.57
33.83
22.25
100.00
100.00
100.00
100.00
100.00
115
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
245,911
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
245,911
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
-
-
-
-
20,000,000
2,600,000
Starmems Semiconductor Corp.
3,500,000
35.00 1,000,000
10.00 4,500,000
Kinpo&Compal Group Assets
Development Corporation
Note: Investments made by the Company using the Equity Method.
52,500,000
70.00
-
- 52,500,000
100.00
100.00
45.00
70.00
116
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 11, 2022
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
117
4.1.2 Status of Shareholders
Analysis
Government
Agencies
Financial
Institutions
Other
Institutions
Foreign
Institutions and
Natural Persons
Domestic
Natural
Persons
Treasury
stocks
Total
Number of
Shareholders
Shareholding
(shares)
Percentage
4
38
357
1,149
221,866
0
223,414
26 306,198,683 713,091,225
1,859,757,142 1,528,099,549
0 4,407,146,625
0.00%
6.95%
16.18%
42.20%
34.67%
0.00%
100.00%
4.1.3 Share Ownership Distribution
April 26, 2022
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 26, 2022
44,563
128,683
26,406
8,363
4,746
3,960
1,774
1,122
1,914
831
382
156
88
49
377
223,414
9,030,917
282,049,701
203,963,511
103,580,381
87,148,933
100,055,625
63,076,242
52,258,339
137,388,119
116,793,828
106,282,193
75,419,979
61,483,381
43,877,723
2,964,737,753
4,407,146,625
0.20%
6.40%
4.63%
2.35%
1.98%
2.27%
1.43%
1.19%
3.12%
2.65%
2.41%
1.71%
1.40%
1.00%
67.26%
100.00%
4.1.4 List of Major Shareholders
Shareholder’s name
Yuanta/P-shares Taiwan Dividend Plus ETF
Silchester International Investors International Value Equity Trust
Kinpo Electronics, Inc.
Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF。
New Labor Pension Fund
Silchester International Investors International Value Equity Group Trust
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
Fubon Taiwan Index high dividend 30 ETF
Silchester International Investors International Value Equity Taxable Trust
118
Shares held
194,008,470
155,706,000
151,628,692
109,443,000
81,654,000
73,840,000
58,321,900
53,663,652
52,061,000
194,008,470
April 26, 2022
Percentage (%)
4.40%
3.53%
3.44%
2.48%
1.85%
1.68%
1.32%
1.22%
1.18%
1.09%
4.1.5
Market Price, Net Worth, Earnings, and Dividends per Share
Year
Measurement
Per-share
market
price
High
Low
Average
Per-share
net worth
(Note)
Before dividend
After dividend
2020
21.00
15.30
18.88
24.52
22.90
2021
27.95
20.60
23.26
25.56
23.54 (Note)
Year-to-date
March 31, 2022
27.20
24.15
25.70
24.65
-
Earnings
per share
Per-share
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
4,357,129,194
4,357,129,194
4,357,129,194
2.15
2.90
0.50
4,357,129,194
4,357,129,194
2.15
1.60
-
-
-
2.90
2.00 (Note)
-
-
-
-
-
-
-
-
-
Analysis of
investment
returns
-
-
-
Note: The 2021 distribution of earnings was resolved at the March 15, 2022 Board of Directors’ Meeting.
8.02
11.63 (Note)
8.60% (Note)
8.78
11.8
8.47%
4.1.6 Dividend Policy and Implementation Status
1. Dividend Policy
When the Company makes a profit during the year, 10% of the annual net income after appropriating
income tax expense, offsetting any prior deficit, is to be set aside as legal reserve and a special reserve
is set aside or reserved in accordance with the pertinent laws and regulations. The balance of earnings
available for distribution is composed of the remainder of the said profit and the retained earnings from
previous years. The earnings appropriation, distribution of dividends, and bonuses shall be proposed
by the Board of Directors and approved at a Shareholder’s Meeting. The rest of the unappropriated
earning shall be reserved.
The Company is in a growth period of its life cycle. And as such, for the consideration of future capital
needs and to meet cash flow needs of its shareholders, the Company’s distribution of cash dividends,
after closing and distribution of earnings, shall be no less than 10% of the total cash and stock dividends.
Although a dividend ratio has not been specified in the Company’s articles of incorporation, the
Company shall not appropriate less than 30% of its income after tax for dividends, after taking into
account factors such as the Company’s capital needs, the capital budget, long term financial plans,
119
domestic and international competition, and the interests of the shareholders. The board of directors
shall propose the distribution of earnings and submit them to the shareholders’ meeting for approval.
2. Proposed Distribution of Dividends
‧ The 2021 distribution of earnings of shareholders’ dividends in the amount of TWD 7,051,434,600 was
approved by the Board of Directors Meeting on March 15, 2022. The aforementioned amount is set to
be distributed as an all-cash dividend of TWD 1.6 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 8,814,293,250.
‧ 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 April 30, 2022, and cash distribution has been paid out on
May 20, 2022
3. When there is a significant change in the expected dividend policy, it should be stated: None.
4.1.7 Impact on 2021 Business Performance and EPS resulting from Stock Dividend Distribution:
Not Applicable (The Company did not disclose 2022 annual financial forecast)
4.1.8 Employees’ and Directors’ Compensation
1. Employees’ and directors’ compensation policies as stated in the Articles of Incorporation
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
for any discrepancies between the amounts estimated and the amounts paid.
‧ Compensation to directors and employees, as denoted in the Articles of Incorporations, shall be estimated
based on income before tax prior to the subtraction of directors and employees compensation during the
current year and multiplied by the ratio as denoted in the Article of Incorporation (shall not be more than
2% or less than 2% of the remainder, respectively.)
‧
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.
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‧
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.
2021 employees compensation proposal passed by the board of directors
‧ Accrued employee compensation is TWD 1,350,062,159 and Directors compensation is TWD 71,389,891.
‧
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 2020 employee and Directors compensation:
‧ The employee compensation is TWD 974,693,802 and the Directors compensation is TWD 51,540,800.
‧ The 2020 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: None
4.3
Preferred shares: None
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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
GDR holders’
rights and obligations
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
2021
Year-to-date
May 11, 2022
High
Low
Average
High
Low
Average
40,000,000 ordinary shares of Compal
Electronics
1.
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
N/A
The Bank of New York
Mega International Commercial Bank
2,461,999 units (May 11, 2022)
The Bank of New York
Mega International Commercial Bank
N/A
Borne by participating shareholder(s)
Allocated proportionally between the
Company and participating shareholders
See descriptions below
USD $ 4.94
USD $ 3.70
USD $ 4.16
USD $ 4.94
USD $ 2.58
USD $ 3.80
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.
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■ 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
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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
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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, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution, 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, Automotive Electronics, and Servers.
■ 2021 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 2021, Compal adopted the most efficient R&D methods for the launch of its latest notebook PC hardware,
which included laptops with 12th generation processors and AMD’s new 6nm Ryzen 6000 processors. 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. As the pandemic situation stabilizes and transitions into a post-pandemic era, the demand
for hybrid working has driven strong consumption of notebook devices. Compal continues to release
commercial 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 2022, Compal will continue to conduct high-end technology in
its flagship gaming laptop and ultraslim gaming devices, and new thermal solutions. Compal will continue to
make significant investments in R&D to create win-wins with our customers to increase their market share.
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■ 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 2022. In addition to compatibility with the Intel
design specifications, like “Intel Evo,” for their latest generation products, we also introduced 5G for Always-On,
Always-Connected laptops to change typical usage patterns. Future laptop features should combine
productivity, mobility, a more user-friendly design, long battery life, and 5G connectivity. These features are
able to help users to work remotely with high-efficiency support. 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.
■ 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 the usual functional operations, the product also features Tablet PC touch
versatility. The touch-sensing display module coupled with the latest Microsoft Windows 11 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. Always-Connected with 5G can gradually become an
attractive feature.
■ 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, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution
5G communication and 5G applications are global development trends. The three major use 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.
Compal adheres to its long-term technical advantages in the communication field, provides 5G communication
devices and networking equipment as well as offers the highly End-to-End integrated 5G networking
infrastructure solution (the so-call Non-Public Network or Private Network).
126
The 5G universal integrated module complies with 3GPP Release R15 & R16 specification, is backward
compatible with 4G LTE / 3G WCDMA, supports high-speed LTE Cat20, and supports both 5G NSA & SA
networking modes. Modules with multi-band support include WCDMA/ TDD-LTE/ FDD-LTE, 5G FR1 (Sub-6GHz)
& 5G FR2 millimeter waves etc. Modules also built with GPS / GNSS global positioning system, eSim and other
functions, all need foundational technology of coming 5G and AIOT applications & devices.
Based on the long-term experience in consumer electronics design, research & 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 CPE routers, 5G notebook, 5G
AR/VR, 5G drone, 5G robots, 5G real-time Camera, 5G Industrial PC & industrial router, and 5G USB Dongle, etc.
Rooted in the technology competence of telecommunication and the collaboration competency of joint
development, Compal has effectively engaged with strategic partners to develop and manufacture the 5G
networking equipment, such as 5G Small Cell, Edge Computing, 5G Network Management and 5G Core
Network, as well as the as 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 solution - will be widely used in various
industries such as entertainment, culture, tourism, finance, health, transportation, education, industry,
agriculture, government, power utilities, etc.
■ Tablets
Compal has deeply cultivated in consumer tablet and e-Reader products for years. By our advanced design
technologies, rich mass production records, superior performance management and reliable quality control, we
won high praise from global leading customers. Facing the slow down global tablet market in recent years,
Compal is also investing in creating breakthroughs in technologies and product features, aiming to commercial
and industrial tablet market to engage more business opportunity and raise profits.
■ Smartphones
Compal targets variant 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 develop and ship 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 & monotonous shape of rugged phones and can meet
the military standard requirements, also bringing a new & fashion ID look to rugged smartphones.
127
■ Smart Wearable Devices
Compal began to ship wearable devices starting in 2016. Based on the design engineering capabilities and
manufacturing experience with smart devices, we have achieved good market share 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 consumer Bluetooth headsets 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 the past two years, people’s daily life has changed a lot due to the impact of the Covid-19, and the demand
for smart displays has diversified. We continue to deepen and strengthen the development of quantum dot
with mini and micro LED backlight solutions and OLED 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. To create interactive convenience and
visual and auditory immersive experience in the use of products, 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 leaps 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
128
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 for 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 profits. Besides, the demand for AR/VR glasses in vertical market has increased since
the technology progress of wearable device in past few years. Add to that, Metaverse has become a hot topic
and drew customer attention.
■ 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, using our strengths 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 such products as
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.
129
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 261.1 million units worldwide in 2021, up 17%
from 2020. In 2022, as the Covid-19 pandemic seems to show a sign of easing and transitioning into a post-
pandemic era, the new living style throughout the pandemic will become a new normal. Demand for technical
devices will be slower after strong demand in the pandemic. Also, from a market perspective, demand will not
be as strong as in the past two years. As the PC industry matures, brand manufacturers are shifting focus
towards higher priced products with more features, such as commercial laptops, Ultra slim Notebooks, 2-in-1s,
gaming notebooks and creator PCs in search of more market opportunities, revenue and profits. 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 2021 was close to 76.9 million units
worldwide, representing an annual growth rate of 22.5%. Ultraslim notebooks may account for 32.1% of the
total notebook shipment worldwide by 2022. 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.
■ Gaming Notebooks
The gaming market has been on fire for two years; there are some changes in consumer groups and usage
scenarios. The pandemic forced people were spending more time “living life from home”. Many consumers
were stuck at home for a large portion except for work, gaming became more positive and important. Also, with
more time at home, consumers switched from outdoor activities to online shopping and mid-to-high-end
gaming products. These new shopping behavior and consumers continue to support strong demand for gaming
hardware with high shipment sales. According to IDC, in 2021, gaming laptops shipped 28.4 million units with
18.3% YoY increase. In 2022, gaming laptop shipment will take about 11.1% of the total notebook shipment.
130
■ 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 a higher need for portability. According to IDC, the shipment of 2-in-1 devices totaled about 126.1 million
units worldwide in 2021. The manufacturers will introduce diversify products with 5G and AI in 2022. This has
the potential to increase shipment by nearly 2% to more than 145.8 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
81% 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
12.4 million units in 2022.
■ 5G Module, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution
According to the GSA, to 2021/E, there are 200 operators officially providing 5G network communication
products and services in more than 78 countries. The 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,
across 21 product categories such as mobile phones, tablet, network sharing devices (CPE/MiFi), router, dongle,
notebook, TVs, robots, vending machines, etc. Many products have adopted Compal 5G solutions already.
Compal will continue to expand partners in different 5G domains to develop more 5G application services and
consumer products.
According to the latest market research, the global 5G small cell market size will reach USD 17.9 billion in 2028.
By SNS estimates, the global private network market will grow to USD 3.4 billion in 2025 with CAGR 34%.
Ericsson also pointed out the huge potential of digital transformation, and the 5G vertical application market
will reach USD 1.32 trillion in 2026. Compal's new products 5G small cells and 5G O-RAN private networks and
vertical solutions not only enhance network speeds, but also bring breakthroughs in enterprise private
networks, smart city and smart factory applications. It is expected that small cells and private network solution
131
will improve 5G coverage and vertical applications.
■ Tablets
Impacted by the Covid-19 pandemic, demands for work, entertainment and education at home are sharply
increased, which has driven the tablet demands to hit a high in recent years. Due to epidemic slowdown global
IC shortage, tablet total shipment is slightly decreased in 2021. According to an IDC report, the global tablet
market shipped 168 million units in 2021, a 3% YoY increase comparing to 2020. The pandemic push people to
get more used to communicate through Internet and use online learning. Comparing to PC or Laptop, tablet has
cost and mobility advantages, and the huge app market leveraged from smartphone ecosystem and more user-
friendly for elder people and kids also drive the growth. Compal also continues to pay attention to the market
trend 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 2021 was about 1360 million units, with a YoY increase
of 6.0%. We observe that 5G smartphone keep the huge growth power for the upcoming 5G network
deployment and the launch of 5G services into the market. Compal aggressively invests in the development of
new technologies for 5G smartphones, and provides built-in AI 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, in 2021, smart watches market continued to grow at an annual growth rate of 28%. Apple is
still the top one vendor by market share. Despite the impact of Covid-19 on supply chain management, end–
users have increased their awareness of healthcare management and drove the growth momentum of all smart
watch segments. In 2022, Compal continues to provide best-in-class manufacturing and ODM services with
latest technical development for brand customers. By integrating the latest smart watch platform and
technologies, Compal provides a variety of product design solutions hand-in-hand with brand customers to
meet demand of different target market segments, and end-user attributes.
■ Smart Hearable Devices
The global TWS hearables market shipments in 2021 grew 24% YoY in unit sales, reaching 300 million units, and
25% in terms of value, according to Counterpoint’s TWS Hearables Market Tracker. Apple saw a slight increase
of 5% YoY in its unit sales but its market share fell to 25.6%. However, the sub-$50 segment accounted for the
largest share in 2021 with strong demand from emerging markets like India.
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
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hearing loss problems, and about 1 billion people have potential risk of hearing loss due to loudspeakers and
long-term listening to entertainment headphones. Compal develops smart hearable products, TWS earbuds and
Bluetooth hearing aids by co-working 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 the Omdia Markit, due to the impact of Covid-19 the overall annual global LCD TV
industry shipments in 2021 was about 207 million units, about -7% year-on-year. However, the North American
market was stimulated by government subsidies to increasing about 39% year-on-year. Looking forward to
2021, the impact of Covid-19 still exists, but no more subsidies from government, and the market will be
changed greatly with the impact of inflation. We will continue to accumulate the development energy of smart
TV and smart video-related products, and continue to cultivate strategic partnerships to maintain a good
business and keep flexibility to respond to market dynamics.
■ AR/VR Smart Devices
Aiming for the Metaverse opportunities and the use of new forms of media and information technology, one
can accelerate the efficiency of processing, solving issues in work, life, and entertainment. Through VR
experience, learning, training, and AR (augmenting reality) to solve issues in a timely manner. Therefore, AR/VR
applications have gradually become the main force for the development of technology giants in various fields,
especially Microsoft, Facebook/Meta and HTC. 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, 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 taking 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 I 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.
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■ IoT Vertical Solutions
Industries have maintained high interest in IoT over the last few years. We hope to resolve the inherent issues
in collaboration with ICT businesses. In this sector, we have engaged in cross-sector alliances with leaders of
other industries to develop autonomous mobile robot (AMR) to enhance plant production efficiency or smart
cold-chain transportation to resolve the long-time pain point of businesses. Furthermore, the emergence of
Metaverse will accelerate the demand of AR/VR glasses, the market is also towards enterprise and consumer
applications. To Compal Electronics, this is a favorable opportunity to enter Metaverse industry.
■ 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
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.
Disruptive innovation in technologies, along with IT companies (e.g. Google), startups (e.g. AI and sensor
startups), and service platform providers (e.g. Uber) entering the market one by one have changed traditional
supply chain and competitive environment in automotive. Driven by new entrants into the market, new
technology introduction and Covid pandemic since 2019, legacy carmakers have adapted their sourcing and
operation models to the changes and challenges. To cope with those changes and challenges in auto industry,
we have equipped ourselves with ITAF 16949 and ISO 26262 certified and deployed 5G networking access and
ADAS technologies. In last year we built a plant in North America to locally supply customers’ demand.
■ Servers
Server shipments have grown at about 2.1% per year mainly due to increased demand for cloud services.
According to IDC, shipment of x86 servers totaled 17.09 million units in 2021. This is expected to rise to nearly
18.18 million units in 2022. X86 servers accounted for 96.5% of total server shipments. Rack-mounted servers
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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 and deal with the latest technology and pricing of key components such as
semiconductors, CPUs, LCD panels, and solid-state drives (SSD). However, we still suffer geopolitical issues and,
regional conflicts, and climate issues 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.
Global warming and climate change have become important issues in recent years. The technology industry
changes people's lives so that companies will not be absent. Under the trend of energy conservation, carbon
reduction, and recycling, Compal helps clients to launch notebooks with eco-friendly and sustainable. The
design concept is based on energy conservation, recycling, and reuse to do our part to save the planet.
.
■ 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 its
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.
■ Gaming Notebooks
In the design of gaming notebooks, the biggest difference from traditional notebooks is the requirement for
powerful performance. As the result, thermal design is important for the performance of gaming notebooks.
Compal continues to cooperate with suppliers to develop a variety of advanced cooling modules and use them
in new products. It can help customers to continue to expand their market share in the gaming notebook
market.
■ 2-in-1 Notebooks
The supply chain and manufacturers of 2-in-1s are generally identical to those of conventional notebooks, with
the addition of some tablet parts suppliers and manufacturers. Support of the existing supply system and its
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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, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution
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 5G domains services and requirements.
■ Tablets
Due to global IC shortage in 2021, in addition to existing suppliers, Compal also apply more aggressive supply
chain strategy, including strategic material purchasing and validate 2nd even 3rd source in the design phase, to
minimize the risk of supply chain. To lower manufacturing uncertainty, Compal also diversified manufacturing
to within and outside of China to provide production options to our customers while ensuring that price,
delivery and quality could meet their 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 components supply 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
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.
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■ 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 medical
regulation tests so that we can guarantee to our customers that Compal can deliver reliable and high-quality
products.
■ Smart Display Products
The supply chain has been affected by the uncertainties of both Covid-19 pandemic and the China-US tariff
dispute, so they continue to move production out of China to diversify risks. We aggressively to integrate
resources across regions from upstream to downstream, deploy production base resources, control and manage
operating cost, and provide flexible order fulfillment to meet customer’s demands.
■ AR/VR Smart Devices
For AR/VR applications, Compal provides a complete range 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 highly cost-effective
solutions 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 offer all kinds of Smart Home applications.
■ IoT Vertical Solutions
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 AMR, in collaboration with suppliers with respect to
customers’ application requirements.
■ 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
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conventional management system adopted by existing medical institutions, this product category 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
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 training program design. This
information can be exchanged over the cloud to facilitate remote training and communication between
athletes and trainers. This helps athletes follow 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 automatic 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
and has invested in the development of some rather innovative medical devices. These include:
Continuous Glucose Monitoring (CGM), 24-hour blood pressure monitoring (24-hour BPM), handheld
smart ultrasound, 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.
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(3) Medical AI
• Cardiovascular disease prediction
To reduce the issue 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.
■ Automotive electronics (AE)
The mid-stream players in the supply of automotive 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 their focus towards higher
priced and more fully featured products, such as commercial notebooks, ultra slim notebooks, 2-in-1s,
and gaming notebooks in a search for greater market opportunities, revenue, and profits.
• More user scenarios for notebooks, for example, gaming notebooks for eSports and creator PCs for
content creation.
• The Intel 11th generation CPUs were the mainstream processors used in 2021, and Intel’s 10nm processors
have also steadily gained the market share when the new capacity is gradually ramped.
• 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
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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.
• Always on connected feature can help to work remotely.
■ Gaming Notebooks
• Powerful performance is essential for gaming laptops.
• The thin and light design can show better design ability.
• The dazzling sound and light effects make players more immersed in the game world.
• Gaming laptops should have a recognizable appearance design.
■ 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
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applications to achieve higher market acceptance.
■ 5G Module, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution
5G communication and applications have expected explosive growth in the coming years. 5G terminals and
consumer products will come out with different product categories such as network devices (5G CPE/ 5G USB
Dongle/5G Mifi), notebook computers, routers, televisions, and robots… etc.
By 2026, 26% of 5G revenue will come from enterprise private networks, reaching an amount of 600 billion US
dollars according to Ericsson's report. The new demand for "Enterprise private network" will be an important
opportunity for 5G small cells, 5G O-RAN private network and application solutions.
Compal provides the leading communication technology, product manufacturing and technical know-how. Our
integrated 5G module, 5G devices, 5G Small Cell and 5G O-RAN Private network solutions provide 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 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.
Tablets are mature products, and for the next step, manufacturers should focus on exploring new usage
scenarios 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. To provide mobile
broadband service (eMBB) 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.
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• Continuously improve the functions required for rugged mobile phones, scratch-resistance, crack-
resistance, drop-resistance, waterproof, dustproof, etc.
■ Smart Wearable Devices
• More and more smart, fashionable, and compact watches for sports and health are following Apple to the
market.
• Customers who use smart wearable devices for sports also want high-accuracy GPS, steps counter, 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 specialized in related 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, adapting OLED panels, integrating far-field
microphones, ultra-high-resolution large size display solutions, Quantum Dot with 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 experiences 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.
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• 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.
• Services are integrated through cloud and edge 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 many 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 5G, AI, multiple sensor cognition, 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
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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 are
also more competitive in the market. Compal will continue investing in the development of medical
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 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.
■ Automotive 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.
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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
2021
2022 first quarter
16,491,857
3,974,246
1,235,682,015
267,857,679
1.3
1.5
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
ultimate performance such as gamers or creators.
• Mainstream products: 16-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.
• No compromise on performance.
• Not only thinner and lighter but also lower power consumption are key requirements for good user
experience.
• New ultra slim notebooks 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 more secure and precise connections while
allowing easier detachment, this allows better user convenience when 2-in-1s are used in different
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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, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution
• Qualcomm X62/65 5G M.2 / LGA module will be mass-produced in 2022.
• 5G integrated small cell developed in 2021 and obtained product certification.
• MTK based 5G M.2 / LGA module have been mass-produced in 2021.
• Qualcomm x55 5G M.2 / LGA module obtained product certification, including GCF, CE, CCC, TELEC, FCC,
PTCRB, etc., which have been mass-produced in 2020.
• 5G products obtain interoperability test reports and certifications from major worldwide 5G operators.
• 5G indoor/outdoor CPE, and MiFi have been in development and mass-produced 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 charge function.
• Developed and mass-produced a new generation of waterproof e-Reader with wireless charge function.
■ 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 maps, 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
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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 headsets and Bluetooth hearing
aids with more intelligent noise cancellation features.
■ Smart Display Products
•
Integrated large-size OLED panels and develop new image sticking free technology.
• Developing a Quantum Dot with 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
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 smart camera devices and launched to market, and the product
won the 2021 iF design award.
■ IoT Vertical Solution
• The development of AR and VR Glasses product were completed, and shipping to foreign customers
has begun.
• The development of Smart Meter Communication Hub product was completed, and shipping to foreign
customers has begun.
• Mass production of the shield-type and uplift-type AMR has begun. Apart from implementing all
Compal plants, we have started cooperation with system integrators and shipped to customer;
meanwhile, kept promoting 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 ten point-of-care centers in Taiwan have begun trials and official use of this solution. In
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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.
■ 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 and AMD 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.
Edge Computing Servers
The system has been designed for 5G telecommunication facilities in collaboration with 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 times.
• 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
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competitive pricing for lower priced products.
• Diversified production sites to mitigate geopolitical risk and strengthen cost competitiveness.
• We will pay close 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.
• Observing the impact of Metaverse on the market and launch products that meet market demand.
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
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
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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. 2021 Sales (Service) by Regions
Area
Americas
Europe
Asia (Including Taiwan)
Other Area
Total
2. Market Share
■ Notebooks
Percentage
44.1%
25.0%
28.1%
2.8%
100.0%
According to IDC statistics, the total number of notebook PCs sold around the world in 2021 came to approximately
261.1 million units. In terms of total shipping quantity, Compal’s notebook PCs have approximately 22% 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.
■ 5G Module and 5G User Equipment
Compal 5G UE Modules shipped from 2020, which is applied to various product categories such as 5G Mifi, 5G CPE
routers, 5G notebooks, 5G AR/VR, 5G drones, 5G robots, 5G real-time cameras, 5G Industrial PC and industrial
routers, and 5G USB Dongle, etc. The 5G standard is the major world-wide communication standard and trend,
will bring rich product possibilities and high growth.
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.
■ 5G Small Cell and 5G O-RAN Private Network solution
Compal has launched a variety of 5G integrated small cells for both Sub-6 and mmWave, and a variety of wireless
end devices, to meet outdoor and indoor application scenarios, accelerate the speed of 5G network deployment,
and reduce the cost of each field. With Compal's customized 5G O-RAN private network and application solutions,
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it can meet the deployment needs of different industrial fields. At present, it has been deployed in several domestic
fields to assist the digital transformation and strengthen the development of the industry.
■ 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
earbuds. Because smart hearable products require high accuracy and miniature manufacturing, Compal is also
investing in optimizing the product design and manufacturing processes to enhance production efficiency.
■ Smart Display Products
Developed mass-produced ultra-high-resolution smart TVs and successfully gained over 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, the global notebook market showed a 17% year-on-year growth in 2021. In 2022, the
post-pandemic era, the demand for commercial device will remain strong. However, components shortage crisis
may still 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
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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 2021 was approximately 76.9 million units with 22.5% year-on-
year growth. An annual growth rate of 32.1% is expected for 2022 with a total shipping quantity exceeding 83.4
million units.
■ Gaming Notebooks
As the epidemic gradually eases, people start to return to normal life and reduce their reliance on games. However,
market data shows that many players still maintain gaming habits after the epidemic. According to IDC’s data, the
global gaming notebook shipment is 28.4 million units with an 18.3% YoY growth in 2021. Gaming laptop shipment
will take about 11.1% of the total notebook shipment.
■ 2-in-1 Notebooks
Much effort and hard work from the industrial chain, have resulted in the cost 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 2021 was approximately 126.1 million units.
It is expected by that 2022, 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 2%, with a global shipping quantity exceeding about
145.8 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 2021 was 12.3 million units and the number is
expected to remain about the same at 12.4 million units in 2022. Compal will continue to cultivate the market.
■ 5G Module, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution
Cisco’s internet report points out that by 2023 70% of the world 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 continue to develop 5G products with customers
and various 5G domain partners.
According to the latest market research report, the global 5G small cell market size will reach USD 17.9 billion in
2028. SNS estimates that the global mobile private network will grow to USD 3.4 billion in 2025. Ericsson's report
also pointed out that the 5G vertical application market will reach USD 1.32 trillion in 2026. In view of the huge 5G
small cell and 5G O-RAN private network application market, Compal actively invests in the development of 5G
small cell and 5G O-RAN private network solutions. Compal deeply integrates and cooperates with various of
operators and industry partners, and officially become 5G small cell equipment and 5G O-RAN private network
solution provider.
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■ Tablets
Follow by the pandemic getting controlled, it’s predicted that the total tablet shipping quantity in 2022 would
decline to the level before Covid-19. According to market forecast, detachable tablet shipment will surpass slate
tablet in few years. Compal sees this trend and will develop toward the commercial segment with larger screen
size and 4G/5G communication technology to accommodate the growing demand.
■ Smartphones
According to IDC's, after the impact of the Covid-19 pandemic, the 2022 Smartphone Global smartphone market
shipment is estimated to reach 1380 million with 1.5% YoY growth when compared to 1360 million in 2021. 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 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 several years in the future, driven
by different marketing strategies: independent product or accessory of smartphone and smartwatch. More
vendors join the market and it becomes more competitive. To create more value, Compal is focusing on new
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 2022 will still affected by the Covid-19, logistic and inflation
uncertainties and is expected to have a slight recession. 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 assistants, OLED panels, quantum dots with 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%
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worldwide households will have one or more Smart Home devices. Compal will actively establish its presence in
the Smart Home market.
■ IoT Vertical Solutions
According to a survey report by Gartner, Jan. 2022, smart device shipments are expected to reach 170 million units,
increase of 17.2% over 2021. Moreover, Gartner expected the demand to grow to 224 million units by 2025, 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 are 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 continuous blood sugar
monitoring systems, reached USD 1.8 million in 2018 and will hit USD 2.5 billion in 2026, with a CAGR of
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%.
■ Automotive electronics (AE)
IHS estimates global light vehicle production in 2022 will reach 82.4 million units, up 3.7% YoY from 79.4 million in
2021.
■ Server
IDC statistics show that the demand for x86 servers was 17.09 million pieces in 2021 and will reach 18.18 million
pieces in 2022. 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 96.5% of the shipping volume. As
the frame-type server has a higher market share, we have actively engaged in the server market.
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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 of 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 and is good at 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 2022, Compal will maintain this advantage actively assist customers in the
development of more competitive Ultra slim Notebooks.
■ Gaming Notebooks
Compal is consistently dedicated to the gaming laptop market with the best hardware and software design. We
will keep focusing on the design of new-generation gaming laptops in order to target different customers in 2022.
■ 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.
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■ 5G Module, 5G User Equipment
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.
■ 5G Small Cell and 5G O-RAN Private Network solution
• Compal’s new 5G small cell series released has comprehensively antenna solution, greatly increased the data
transmission rate and accuracy, and effectively enhanced the network signal, strengthening the indoor
coverage and the ability of outdoor long-distance transmission, creating the industry's fastest 5G small cells.
Small cells equipped with the new processor and Compal's 5G O-RAN private network and application
technology have greater flexibility to meet the needs of deployment in different industrial fields, and can also
enhance the possibility of extended development and strengthen industrial development.
■ Tablets
Compal remains somewhat optimistic about the future of the tablet market. Based on our design energy, we can
provide more efficient tablet solutions to help our customers to decrease time-to-market while deliver more cost-
effective and competitive products. Compal will also explore the possibility of introducing tablets that support
4G/LTE/5G Carrier Aggregation (CA), using the experience and knowledge accumulated in smartphone
manufacture, to meet the 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, virtual personal assistants and more intuitive user interfaces.
• 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
• We continue to focus on the development of smart display in the immersive of picture and sound experience
and the application of voice assistants, integrate cross-domain product research, and development resources
to expand the industrial ecological chain.
• We 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 win-win business and strive for market share.
■ AR/VR Smart Devices
Compal continues its close 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.
■ Automotive 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
• Demand jumps after the ease of pandemic.
• The pandemic has prompted people to embrace flexible work styles, which has fueled commercial notebook
demand.
•
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.
• A rational pricing strategy supported by an alliance with parts suppliers helps secure market growth.
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• 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.
• Actively invest in 5G development, continue to develop 5G small cells, 5G O-RAN private network and
application solutions, 5G modules, 5G dongles/hubs and other 5G vertical product portfolios that can be
supported in all fields, and gradually promote the development of 5G leadership in applications.
• The US-China 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 unstable international political and economic situation has caused a turbulent state.
• The global economy was impacted by inflation, debts, unequal income, and the attack of virus variants.
• The unsmooth supply of semiconductors will affect notebook shipment in 2022.
• 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 mature product and requires more diverse, value-adding, and innovative features for
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differentiation from other market participants.
•
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.
•
In the condition of the US-China trade war, within the trend of globalization, technologization and the fast-
changing Industries, Taiwanese businessmen have increased investments in Taiwan from abroad as well as the
demand of human resources and make the talented recruiting more difficult.
■ 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 cost.
• 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 cost.
• 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.
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• 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 develop more AR/VR solutions and collaborate with domain partners, to create market
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 in AI technologies, hold AI seminars, and training courses.
• We will improve employee benefits, salaries and other conditions to retain talent, disperse R&D location bases
to increase the source of outstanding talents and attract outstanding talents to join the international
recruitment.
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.
■ Gaming Notebooks
The high-performance hardware and gaming-inspired designs allow gamers to fully immerse themselves in the
gaming world.
■ 2-in-1 Notebooks
These devices use the Win 10 and Win 11 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,
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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.
■ 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 alliances. We offer clients complete solutions and services through the creation of novel applications.
Unlikely conventional IT products, such as AMR 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.
■ Automotive electronics (AE)
‧
In-Vehicle Infotainment systems
‧ Vehicle communication (4G/5G) systems
‧ ADAS warning systems
■ 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
164
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
165
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
The demand for notebooks remained strong in 2021 due to the influence of Covid-19. However, with
countries gradually lifting lockdowns and people returning to office and school, following with the port
congestion issue and Chromebook subsidy program change, the overall demand of NB began to slow
down in 2022 Q1.
In 2022, the port congestion, inflation and geopolitical influence, with the adjustment of customer CPU
inventory, these factors result the delay of new product launch and the overall NB demand continues
to slow down. Due to the mass production and shipment of Apple’s CPU, the proportion of X86 has
been divided. It is expected that the proportion of Intel will drop from 76.54% to 72.04%, AMD will
decline from 17.49% to 17.15%, and the Apple’s CPU will increase from 4.01% to 8.18% with the other
ARM CPU increase from 1.96% to 2.63%.
In terms of Intel new product, it is expected that the 10nm Alder Lake and supporting DG2 graphic card
will be launched in 2022 Q2 that will support the new generation DDR5. 10nm Raptor Lake will be
launched in 2022 Q4. Meteor Lake on 7nm process is expected to launch in 2023 Q2. Considering that
the low-end CPU is still dominated by 10nm Jasper Lake, a new generation of low-end CPU Alder Lake
N will launch in 2022 Q4. The new AMD product 5nm Phoenix is expected to launch in 2022 Q4 with
the 6nm low-end Mendocino.
●
Smartphones and Modules
The Global 5G smartphone sales over 50% in Jan 2022, the major market growth in China, North
America and Western Europe. The mobile phone market was also affected by seasonal sluggish
demand, resulting in relative weakness in the quarter for stock adjustment.
Coupled with the global economic status, the overall production performance will weaken the
first half of this year, and affect the total production volume of the whole year, which is expected to
be lowered from the original 1.38 billion to 1.366 billion units, and the annual growth rate will decline
to 2.5%. Including Covid19, the shortage of wafer production capacity has not been significantly
alleviated, coupled with geopolitics, inflation, energy shortages and other more serious issues this
year, it will also bring more variables to the smartphone market this year, and it is not excluded that
the total annual production volume will continue to be adjustment.
The global 5G market in 2021 was 4.85 billion US dollars, and will reach 17.11 billion US dollars by
2026, with a compound annual growth rate of 28.67%. Due to the rapid development of automation
equipment, drones, home automation equipment, autonomous driving, multiplayer gaming, video
conferencing, webcasting, telemedicine, and augmented reality, 5G networks meet consumer demand
for higher network speeds and increasing demand for mobile data services, which will significantly
drive the growth of the global 5G chip market.
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■ Memory
●
DRAM
In 2021, the three major OEMs (Samsung, SK Hynix and Micron) had conservative production plans on
the supply side, with the demand for notebooks and servers have increased due to the Covid-19, which
causing DRAM price start to rise since 2021 Q1. The pulling force was ease due to the high-level DRAM
inventory, which caused by the shortage of IC. However, since a part of production capacity was
transferred to the new generation DDR5 resulting the yield loss, the DRAM price did not drop sharply
in 2021 H2.
In term of DRAM application, based on 1 Gb calculated for the overall world-wide supply. The shipment
was 176 billion units in 2021 and it is estimated to be 209 billion units in 2022, with YoY growth around
18.7%. It is expected that the production capability proportion of mobile phones will slightly decrease
from 40% to 39%, servers will increase from 34% to 35%, PCs remain 13% with Consumer and Graphic
account for 8% and 5% respectively.
In term of DRAM manufacturing process, three major OEMs continually move toward to 14nm, but it
is expected that the capital expenditure will reduce about 9% compared with 2021. It is estimated that
the whole year output bit growth of three major OEMs is about 18.7%, which is higher than the
demand side of bit growth by 17.03%. Therefore, it is expected that the supply of DRAM in 2022 will
be relatively stable compared with 2021. Nevertheless, the new-generation DDR5 has requested to
add PMIC on module, which also increase the risk of material shortage compare with DDR4.
Looking forward to the market, although the demand of server continues to grow, the demand of
mobile has ease, with OEMs has adjusted the mobile production capability to server and consumer, it
is expected that the PC side supply will be relatively stable in 2022 H2 with the DRAM price increase
more restrained than previous. Additionally, since the mining demand has slowed down and
geopolitical influence causes gaming demand decrease, the VRAM price shows a declined trend.
■ NAND flash
Major NAND Flash suppliers plan to keep their bit growth rates smooth. It is estimated that the supply bit
growth rate will be 31.8% in the 2022 with the market demand bit growth rate 30.8%. However, Kioxia and WD
material contamination event brought about a temporary supply gap and ended the price declining cycle. In
2022, Covid-19 epidemic will continuously impact all sectors of the economy. China is still adopting zero-Covid
policy, which brings many uncertainties to the electronics industry supply chain.
The mainstream production process transferred from 92/96 layers to 128/144 layers. Looking forward to 2022,
the NAND production process will keep move to higher stacking processes. Both Micron’s and SK Hynix’s new
generation of 176-layer NAND Flash products have been entered mass production. Samsung announced that
they will accelerate the mass production plan of 8th generation 3D NAND after 7th generation 3D NAND have
been entered mass production. It is expected to drive NAND Flash manufacturers to launch 228-layer TLC or
QLC in the end of 2022 while the industry competes toward to higher stacking processes.
At the beginning of 2022, Samsung adjusted operations at their manufacturing facilities due to the lockdown
in Xi’an. A 7.4 magnitude earthquake struck off the coast of Fukushima Japan on 16th of March and made
168
Kioxia halted its Kitakami plants. Kioxia/WD JV also have material contamination event in February and March.
NAND Flash industry is unintelligible in the first half of the year but overall NAND Flash demand is stable and
slightly decrease. The price will not go up too strong, even in the traditional peak season of the second half of
the year.
■ HDD
In 2021, the overall HDD shipments were still dominated by large-capacity enterprise hard drives. With the
notebooks design become thinner and the cloud storage gradually turn into more mature, the HDD attach rate
has decreased year-by-year. It is expected that the HDD attach rate will reduce to 8% as notebooks is mainly
equipped with SSDs.
The 1TB usage rate reached the peak of 61% in the 2021, with 500GB and 2TB accounting for approximately
36% and 3% respectively. HDD prices have been steady over the years. However, the three major suppliers
(Seagate, Western Digital and Toshiba) will increase the price on all HDD productions from 2202Q2 due to the
impact of rising transportation logistics and raw materials cost during Covid-19 pandemic. It is estimated that
the price of HDDs will increase 5-8%.
Overall sales of HDDs dropped from 650 million units to 235 million during the period from 2010 to 2021. The
capacity of HDD shipments was about 1.3ZB (106 TB) in 2021, and is estimated to 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
36%, and Toshiba is 21%.
■ ODD
As notebooks 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 notebooks with ODD has decline are less than before.
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, 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
Countries in the post-epidemic era are gradually moving towards the direction of unblocking. In the case of
back to school and office, it is expected that the market demand for notebook computers will return to normal.
Coupled with the fact that governments around the world are not actively compiling budgets for Chromebooks,
as a consequence, the demand for laptops with educational functions has been revised significantly.
With the gradual popularization of the construction of 5G base stations, the cycle of replacing 4G mobile
phones with 5G mobile phones is taking place. Polymer cells are expected to keep a similar shipment level
compared to 2021. As Japanese and Korean battery manufacturers have determined that they will no longer
focus on 3C consumer products, Chinese suppliers will dominate the market.
As the number of electric vehicle sales continues to grow, the cylindrical battery market is still in shortage. The
overall supply and demand of battery raw materials has been seriously unbalanced, and futures prices have
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also hit new highs, which also affects the cost of consumer batteries.
■
LCD panels and Touch control modules
The Covid-19 epidemic continued in 2021, the shortage of upstream raw materials and the strong downstream
demand, caused prices of LCD panels continued to rise in the first half year. In the second half of the year, the
demand for panels began to show a sign of weakening. The demand for commercial models was still strong,
but the consumer models and Chromebooks began to decline. Due to the strong demand for commercial
models, panel makers quickly switched their product mix to 14-inch and 15.6-inch panels, and shipments of
these two sizes increased 20.2% and 23.2% QoQ in Q3’21 and Q4’21. Panel shipments hit a new high.
Notebook panel shipments hit a record high, reaching 282 million pieces, an annual growth rate of 25.1% in
2021. In 2022H2, demand was driven by the epidemic mainly for consumer notebooks and Chromebooks, and
in 2022H2 as Europe and the United States gradually returned to normal life, the demand was taken over by
commercial models. In Q4’21 due to the supply of components such as driver ICs and T-con ICs has gradually
improved, the notebooks panel market entered into a critical adjustment period.
The panel output value ranked first in mainland China, second in Taiwan, and third in South Korea in 2021. The
overall panel output value of Taiwan and mainland China was the best in terms of LCD growth. Taiwan had an
annual increase of 39.6%, while mainland China has an annual increase of 57.3%. South Korea only has 2.48%
growth due to Samsung's withdrawal from the LCD market.
The CQ1 began to enter the off-season in 2022, the shortage of driver ICs gradually eased. The order volume
in the first quarter has double digits declined, but the panel suppliers did not adjust the build plan in CQ1 and
caused all sizes panel have experienced price declines.
The shipment of notebooks had a normal off-season correction in H1’22, and the panel supply remained high,
the client inventory increased a lot. Due to inflation and geopolitics, the future demand is unclear. At the same
time, due to the price decline trend, clients are expected to adjust the inventory and passively pulling goods.
We foresee that demand will be resumed in the peak season with low level panel price. There is another
opportunity to actively pull goods to replenish inventory.
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5.2.4 Major Suppliers and Clients
1. Major Suppliers in the Last Two Calendar Year
2020
2021
2022 first quarter
Unit: TWD Thousands
Party
Name
Amount
As a
percentage
to 2020 net
purchases
(%)
Relationship
with the
issuer
Name
Amount
As a
percentage
to 2021 net
purchases
(%)
Relationship
with the
issuer
Name
Amount
As a
percentage
to 2022 first
quarter net
purchases
(%)
Relationship
with the issuer
1
2
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
Others
Net Purchase
416,094,822
115,391,469
638,053,542
1,169,539,833
35.58
9.87
54.55
100.00
N.A.
N.A.
Company E 93,032,130
Company B 25,872,982
147,881,371
Net Purchase 266,786,483
Others
34.87
9.70
55.43
100.00
N.A.
N.A.
2. Major Clients in the Last Two Calendar Years
2020
2021
Party
Name
Amount
As a
percentage
to 2020 net
sales (%)
Relationship
with the
issuer
Name
Amount
As a
percentage
to 2021 net
sales (%)
Relationship
with the issuer
Name
1
2
3
4
Company a
120,376,434
Company d
431,621,595
11.48
41.15
Company e
75,903,386
7.24
Company f
240,039,272
Others
180,988,564
22.88
17.25
Net sales
1,048,929,251
100.00
N.A.
N.A.
N.A.
N.A.
Company a
Company d
Company e
Company f
Others
Net sales
144,069,158
11.66
534,800,186
43.28
116,116,250
9.40
223,256,380
18.07
217,440,041
17.59
1,235,682,015 100.00
N.A.
N.A.
N.A.
N.A.
171
Unit: TWD Thousands
Amount
2022 first quarter
As a
percentage
to 2022 first
quarter net
sales (%)
9.65
Company a 25,854,144
Company d 116,428,936
Company e 27,590,879
Company f 43,302,139
Others
54,681,581
43.47
10.30
16.17
20.41
Net sales
267,857,679
100.00
Relationship
with the issuer
N.A.
N.A.
N.A.
N.A.
5.2.5 Production in the Last Two Years
Year
Production
volume/
value
Main products
2020
2021
Unit: 000 Units; TWD Thousands
Production
capacity
Production
volume
Production
value
Production
capacity
Production
volume
Production
value
5C electronics
154,830
130,051
1,009,349,172
176,163
149,327
1,183,285,569
5.2.6 Shipments and Sales in the Last Two Years
Year
Sales volume
Main products
2020
2021
Domestic sales
Value
Volume
Export sales
Volume
Value
Domestic sales
Value
Volume
Export sales
Volume
Value
5C electronics
769
3,095,681 130,581 1,045,833,570 1,156 5,067,681 148,156 1,230,614,334
Unit: 000 Units; TWD Thousands
5.3
Human Resources
Year
December 31, 2020
December 31, 2021
March 31, 2022
Number of employees
112,761
109,709
89,668
Average age
Average years of service
Academic
qualifications
Doctoral Degree
Master’s degree
University
High
school/Below/others
28.12
1.70
0.04%
3.18%
15.80%
80.98%
28.08
1.69
0.04%
3.34%
16.29%
80.33%
28.59
2.10
0.05%
4.06%
19.76%
76.13%
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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 48,928,875 (excluding regular maintenance and green R&D) in 2021.
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 2021 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 spreading 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,
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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 2021, the Company had provided TWD 198.66 million in maternity allowances and bonuses.
There were 43 counts of employees who took parenting leave, with the right to return to work, in 2021.
■
Education and training
The Company set training credits and outlined the credit system according to the needs of each level. The
Company also integrated all training records in an online learning platform to further assist the competent staff
in keeping abreast of learning progress.
In 2021, 673 training sessions (both internal and external) were organized; these courses delivered 170,617
hours of training and 59,307 persons enrolled. The total training expenses were TWD 29,565,000. 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, issue 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 labor retirement rules, 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, we
contribute and deposit labor pension preparation funds into a dedicated account at the Bank of Taiwan per
174
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,
the voluntary withholding rate was 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 2021 and as of the date of report published, Company did not suffer any losses due to employment
disputes: None
‧ Future plans and potential expenses: None
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5.6
Information Security Management
1.
Information Security Policies and Organizations
The Information Security Committee is the organization for the coordination and execution of Compal
information security related operations and various activities. It has one chairman and one deputy
chairman. According to management needs, several members may be set up, with the head of the
department and above as ex officio members. An executive secretary is also set up to be responsible for
administrative affairs. The Information Security Committee has an Information Security Implementation
Team, which is composed of staff from the Information Security Team of the Information Headquarters,
which handles the establishment, promotion, maintenance, audit and training of information security, and
one person is appointed as the head of the Information Security Implementation Team. Report its
implementation to the board of directors once a year. When necessary, the capital committee may invite
external information security consultants to attend and serve as advisors.
Compal’s Information Security Committee coordinates and discusses information security policies,
objectives, resource scheduling and other issues, and holds management review meetings every six months
to ensure the continuous applicability, relevance and effectiveness of ISMS, and maintain operational
information security and compliance National laws and regulatory requirements for information security
control. It defines the scope of ISMS, implements risk assessment and risk management tasks, determines
acceptable risk levels, discuss the duties and responsibilities in information security related operations, and
coordinate information security control measures and processing procedures. It advocates information
security policies and information security management concepts, and promote the company's information
security education and training.
In order to maintain the company's 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 accordance with the requirements of ISO27001 standard, internal audit to be
conducted twice a year and enacts the information security policy as the highest guiding principle. The
statement of information security is "to ensure continuous operation and improve customer satisfaction”.
Compal did not have any complaints about the violation of customer privacy or the loss of customer
information in 2021.
Compal's asset security policy is as follows:
‧
Implement risk assessment of information assets.
‧ Maintain the confidentiality, integrity and availability of important information assets.
‧ Continuous improvement of information security system through Plan-Do-Check-Act (PDCA)
management cycle.
‧ Make sure to abide by customer contract and ensure customer information security.
‧ Follow and comply with government information security regulations.
‧ The participation of all employees and subcontractors.
2.
Information security strategy management and resources
In 2005, Compal passed the information security verification of ISO 27001:2005, and obtained the certificate
of "Information Security Management System ISO 27001:2005" issued by BSI, and gradually expanded its
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scope of verification, which is tracked twice a year and re-audited 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 verifications 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& 2020,
it passed the re-verification successively, and then it was re-verified every three years afterwards, meeting
the requirements of the new version of the specification.
The scope of verification covers the IT Center, portable computer products R&D, All-in-one computer products,
automotive electronic products and server products. In October 2020, the scope of verification was expanded
to four plant compounds at Kunshan to ensure the effective operation of management system for information
security.
The widespread use of computers and rapid development of Internet have greatly changed the way users
store and share information. When companies improve production and management efficiency through
technology and Internet, they have, as well, exposed their privacy and information security to risks. The six
major information security goals are measured monthly to monitor the control measures of information
security management. Risk assessment is executed regularly 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. BCP recovery exercises are executed regularly to ensure the validity of the BCP plan and that
it meets the system recovery goals. To boost employees’ awareness of information security, our employees
are required to receive social engineering exercises and a briefing on information security and training.
Compal continues to strengthen control requirements for information security, reinforces company password
policy, and adjusts the original password setting of previous 3 generations that cannot be reused repeatedly
to 10 generations. Also, it has strengthened identity authentication mechanism for company account, and
introduce two-factor authentication to enhance the security of remote login for internal resources to prevent
illegal users from accessing company resources or customer information. Access to product information is
controlled by account permissions, and the login password is changed regularly in accordance with the
company's password policy. From time to time, it will, through announcements and quarterly advocacy to
enhance employee awareness for information security, persistently review the network security planning of
company, and implement all equipment connected to company network in compliance with regulations and
protocols.
177
5.7
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.
178
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,
2022
Analysis
Current assets
Property, plant, and
equipment
Intangible assets
Other assets
Total assets
Prior to
Current
distribution
liabilities
After
distribution
2017
2018
2019
2020
2021
321,782,654
362,745,250
343,154,813
424,460,635
487,115,390
476,061,727
18,179,367
20,418,228
19,972,347
22,085,340
26,990,364
28,118,386
1,284,660
1,516,253
1,553,342
1,506,101
1,548,508
1,648,286
22,109,740
15,115,092
17,967,917
18,873,622
21,441,078
24,002,371
363,356,421
399,794,823
382,648,419
466,925,698
537,095,340
529,830,770
231,955,732
274,207,898
255,820,033
335,524,716
402,242,095
398,468,240
237,184,287
279,436,453
261,048,588
342,496,124
410,956,354
(Note 2)
-
Non-current assets
22,752,717
12,425,077
12,069,042
15,411,332
13,313,442
14,038,386
Prior to
distribution
Total liabilities
After
distribution
Equity attributable to
parent company
shareholders
Ordinary shares
Capital reserves
Retained
earnings
Prior to
distribution
After
distribution
254,708,449 286,632,975
267,889,075
415,555,537
412,506,626
412,506,626
259,937,004
291,861,530
273,117,630
357,907,456
424,269,796
(Note 2)
-
101,895,584
105,723,646
105,972,633
106,832,505
111,360,265
107,385,573
44,191,916
44,071,466
44,071,466
44,071,466
44,071,466
44,071,466
10,938,773
9,932,434
9,159,259
8,342,813
6,724,856
5,087,888
56,557,146
60,060,381
57,726,604
62,566,181
69,651,940
64,741,364
52,149,999
55,653,234
53,319,457
57,277,605
62,600,505
(Note 2)
-
Other equity interests
(8,911,004)
(7,459,388)
(4,103,449)
(7,266,708)
(8,206,750)
(5,633,898)
Treasury stock
(881,247)
(881,247)
(881,247)
(881,247)
(881,247)
Non-controlling interests
6,752,388
7,438,202
8,786,711
9,157,145
10,179,538
(881,247)
9,938,571
Total equity Prior to
distribution
After
distribution
108,647,972 113,161,848
114,759,344
115,989,650
121,539,803
117,324,144
103,419,417
107,933,293
109,530,789
109,018,242
112,825,544
(Note 2)
-
Note: 1. The financial information is audited and certified by the CPA every year. The financial information as of March 31, 2022,
has been reviewed by the CPA.
2. The amounts are approved by the Board of Directors meeting on March 15, 2022.
179
▓ Consolidated Condensed Statement of Comprehensive Income
Analysis
Net sales revenue
Gross profit
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March 31,
2022
2017
2018
2019
2020
2021
887,656,959
967,706,411
980,442,346
1,048,929,251
1,235,682,015
267,857,679
31,964,569
30,567,091
33,908,828
35,458,522
41,491,574
9,771,784
2,809,891
Net operating income
9,208,429
9,261,746
10,586,368
11,492,545
13,348,593
Non-operating income and
expense
(1,094,152)
2,527,839
(578,492)
1,630,171
4,119,242
215,496
Net income before taxes
8,114,277
11,789,585
10,007,876
13,122,716
17,467,835
3,025,387
Net income from continuing
operations
Net loss from discounting
operations
6,158,037
9,589,301
7,895,719
10,409,512
13,740,488
2,404,645
-
-
-
-
-
-
Net income (loss)
6,158,037
9,589,301
7,895,719
10,409,512
13,740,488
2,404,645
Income (Loss) from Other
comprehensive income (loss)
(4,604,412)
387,887
(1,534,980)
(3,341,346)
(1,237,908)
2,642,157
(net after tax)
Comprehensive income
1,553,625
9,977,188
6,360,739
7,068,166
12,502,580
5,046,802
Net income attributes to
shareholders of the Parent
Net income attributes to non-
controlling interests
Comprehensive income
attributed to owners of parent
Comprehensive income
5,749,525
8,913,365
6,955,899
9,361,893
12,632,667
2,157,178
408,512
675,936
939,820
1,047,619
1,107,821
247,467
1,189,818
9,278,187
5,456,508
6,083,542
11,445,530
4,714,397
attributed to non-controlling
363,807
699,001
904,231
984,624
1,057,050
332,405
interests
Earnings per share (unit:
dollar)
1.32
2.05
1.60
2,15
2.90
0.50
Note: 1. The financial information is audited and certified by the CPA every year. The financial information as of March 31, 2022
has been reviewed by the CPA.
180
▓ Parent-Company-Only Condensed Balance Sheet
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March
31, 2022
Analysis
Current assets
Property, plant, and
equipment
Intangible assets
Other assets
Total assets
2017
2018
2019
2020
2021
240,677,588 265,372,906
245,522,829
296,383,073
348,914,103
2,092,272
2,128,181
2,620,638
2,604,893
2,484,963
146,813
378,745
438,334
436,548
85,179,393
87,932,981 89,201,687
89,526,637
431,936
95,517,212
328,096,066 355,812,813
337,783,488
388,951,151
447,348,214
Current
liabilities
Prior to
distribution
After
distribution
203,492,102 237,882,742
220,871,943
268,466,052
324,236,031
208,780,678
243,171,318
226,160,519
275,517,487
333,050,325
(Note 2)
Non-current assets
22,708,380
12,206,425 10,938,912
13,652,594
11,751,918
344,802,243
N.A.
(Note 2)
44,071,466
6,724,856
Total
Prior to
distribution
liabilities
After
distribution
226,200,482 250,089,167 231,810,855 282,118,646
335,987,949
231,489,058
255,377,743
237,099,431
289,170,081
Ordinary shares
Capital reserves
44,191,916
44,071,466 44,071,466
44,071,466
10,938,773
9,932,434
9,159,259
8,342,813
Retained
earnings
Prior to
distribution
After
distribution
56,557,146
60,060,381 57,726,604
62,566,181
69,651,940
52,149,999
55,653,234
53,319,457
57,277,605
62,600,505
(Note 2)
Other equity interests
(8,911,004)
(7,459,388)
(4,103,449)
(7,266,708)
(8,206,750)
Treasury stock
(881,247)
(881,247)
(881,247)
(881,247)
(881,247)
Total equity
Prior to
distribution
After
distribution
101,895,584 105,723,646 105,972,633 106,832,505
111,360,265
96,667,029
100,495,091
100,744,078
99,861,097
102,646,006
(Note 2)
Note: 1.The financial information is audited and certified by the CPA every year.
2. The amount approved by Board of Directors on Mach 15, 2022.
181
▓ Parent-Company-Only Condensed Statement of Comprehensive Income
Year
Analysis
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March
31, 2022
2017
2018
2019
2020
2021
Net sales revenue
841,309,602
911,050,122
916,280,028
991,279,270 1,171,613,858
Gross profit
21,544,440
21,880,841
24,849,149
23,218,044
27,904,355
Net operating income
5,170,549
6,936,706
8,536,952
6,079,726
7,578,392
Non-operating income
and expense
1,508,171
3,021,610
(713,273)
4,347,551
6,864,576
Net income before taxes
6,678,720
9,958,316
7,823,679
10,427,277
14,442,968
Net income from
continuing operations
Net loss from
discounting operations
5,749,525
8,913,365
6,955,899
9,361,893
12,632,667
-
-
-
-
N.A.
-
Net income (loss)
5,749,525
8,913,365
6,955,899
9,361,893
12,632,667
Income (loss) from other
comprehensive income
(net after tax)
(4,559,707)
364,822
(1,499,391)
(3,278,351)
(1,187,137)
Comprehensive income
1,189,818
9,278,187
5,456,508
6,083,542
11,445,530
Earnings per share(unit:
dollar)
1.32
2.05
1.60
2.15
2.90
Note: 1.The financial information is audited and certified by the CPA every year.
▓ Auditors’ Opinions
Year
2017
2018
2019
2020
2021
Accounting Firm
KPMG
KPMG
KPMG
KPMG
KPMG
CPA
Kuo, Kuan Ying; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Kuo, Kuan Ying ; Chien, Szu Chuan
Audit Opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
182
6.2 Five-Year Financial Analysis
▓
Consolidated Financial Analysis
Year
Analysis
Financial Analysis for the Last Five Years
As of
March
31, 2022
Debt ratio
70.09
71.70
70.01
75.16
77.37
77.86
2017
2018
2019
2020
2021
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 (%)
722.80
615.07
635.02
594.97
499.63 467.18
138.72
108.19
7.25
5.03
72.56
14.55
6.30
25.08
132.29
134.14
126.51
121.10 119.47
103.06
102.94
5.47
5.08
71.85
12.61
6.33
4.67
4.96
73.58
12.01
6.34
97.39
12.42
4.95
73.73
11.61
5.89
92.13 84.91
17.65 10.24
4.73
4.04
77.16 90.35
11.31
5.64
8.22
4.80
28.95
30.39
31.43
32.27 44.40
45.36
50.14
48.55
49.88
50.36 38.88
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 (%)
18.36
26.75
22.71
29.78
Net margin (%)
Earnings per share (dollar)
Cash flow ratio (%)
0.69
1.32
0.99
2.05
(Note1)
(Note1)
0.81
1.60
8.18
0.99
2.15
4.25
(Note1)
Cash flow
Cash flow adequacy ratio (%)
Cash reinvestment ratio (%)
Leverage
Operating leverage
Financial leverage
Note: 1. The ratio is negative.
48.05
(Note1)
1.63
1.16
44.84
(Not1)
1.60
1.40
37.92
35.94
27.41
9.89
1.61
1.35
5.48
1.54
1.11
(Note1)
1.52
1.09
2.46
2.90
11.57
39.64
1.11
2.90
2.01
0.50
2.01
6.86
0.90
0.50
-
-
-
-
-
2. The financial ratio has changed by up to 20% in the past two years:
‧Interest coverage、Return on equity、Operating income to paid-in capital ratio、Earnings per share :
Mainly due to the increase in profit compared to the earlier period.
‧Cash Flow Adequacy Ratio: Mainly due to increase in business growth, inventory amount and capital
expenditures.
3. The financial information is audited and certified by the CPA every year. The financial information as of March
31, 2022 has been reviewed by the CPA.
183
▓ 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.
184
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.
185
▓
Parent-Company-Only Financial Analysis
Year
Analysis
Financial Analysis for the Last Five Years
As of
March
31, 2022
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 (%)
2017
2018
2019
2020
2021
68.94
70.29
68.63
72.53
75.11
5,955.44 5,541.36 4,461.19
4,625.34 4,954.29
118.27
111.56
111.16
110.40
107.61
96.92
89.79
88.45
7.85
5.06
6.14
5.08
4.97
4.97
72.13
71.80
73.46
23.11
18.82
17.55
5.65
5.95
5.86
89.44
15.81
4.87
75.01
18.29
5.73
88.77
21.84
4.64
78.73
19.59
5.72
15.79
19.39
20.79
19.95
18.62
398.31
431.73 385.90
379.40
460.37
N.A.
2.56
2.00
5.54
2.66
3.06
8.59
2.64
2.46
6.57
2.73
2.73
8.80
2.80
3.15
11.58
15.11
22.60
17.75
23.66
32.77
0.68
1.32
0.98
2.05
0.76
1.60
0.94
2.15
1.08
2.90
(Note1)
(Note1)
6.80
(Note1)
(Note1)
Cash flow
Cash flow adequacy ratio (%)
11.48
5.45
(Note1)
(Note1)
(Note1)
Cash reinvestment ratio (%)
(Note1)
(Note1)
8.29
(Note1)
(Note1)
Leverage
Operating leverage
Financial leverage
Note: 1.The ratio is negative.
2.86
1.23
2.59
1.39
2.43
1.30
3.17
1.13
2.94
1.10
2. The financial ratio has changed by up to 20% in the past two years:
˙Interest coverage: Mainly due to the increase in income before tax compared to the earlier period.
˙Property, plants, and equipment turnover: Mainly due to the increase in net revenue 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 income before tax compared to
the earlier period.
˙Earnings per share: Mainly due to the increase in net income compared to the earlier period.
3. The financial information is audited and certified by the CPA every year.
186
▓ 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.
187
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.
188
6.3
Audit Committee’s Report for the Most Recent Year
Audit Committee’s Review Report
The Company’s 2021 financial statements, business report and proposal for distribution of
earnings have been approved by the Audit Committee and by the Board of Directors.
Kuan-Ying Kuo and Szu-Chuan Chien, certified public accountants of KPMG, have completed
the audit of the 2021 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.
To Compal Electronics, Inc. 2022 Annual General Shareholders’ Meeting
Chairman of the Audit Committee: Min Chih Hsuan
March 15, 2022
189
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 2021 to the
publication date of this annual report: None.
190
VII. Review of Financial Conditions, Financial Performance, and Risk
Management
7.1
Analysis of Financial Status
Analysis
Year
2021
2020
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
487,115,390
424,460,635
6,2654,755
8,369,312
7,949,925
419,387
26,990,364
22,085,340
4,905,024
14,620,274
537,095,340
402,242,095
13,313,442
12,429,798
466,925,698
335,524,716
15,411,332
415,555,537
350,936,048
44,071,466
6,724,856
69,651,940
(8,206,750)
(881,247)
10,179,538
44,071,466
8,342,813
62,566,181
(7,266,708)
(881,247)
9,157,145
2,190,476
70,169,642
66,717,379
(2,097,890)
64,619,489
-
(1,617,957)
7,085,759
(940,042)
-
1,022,393
5,550,153
14.76
5.28
22.21
17.62
15.03
19.88
(13.61)
18.41
-
(19.39)
11.33
12.94
-
11.16
4.79
Total Equity
Note: Analysis of variations exceeding 20% and amounting to more than NTD10 million:
121,539,803
115,989,650
Increase in property, plant and equipment: Mainly due to the addition of machinery and other operating
equipment.
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.
191
7.2 Analysis of Financial Performance
Analysis
Year
2021
2020
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)
1,235,682,015
1,048,929,251
186,752,764
1,194,190,441
1,013,470,729
180,719,712
41,491,574
28,142,981
13,348,593
4,119,242
17,467,835
3,727,347
13,740,488
35,458,522
23,965,977
11,492,545
1,630,171
13,122,716
2,713,204
10,409,512
6,033,052
4,177,004
1,856,048
2,489,071
4,345,119
1,014,143
3,330,976
17.80
17.83
17.01
17.43
16.15
152.68
33.11
37.38
32.00
Other Comprehensive Income (after tax)
(1,237,908)
(3,341,346)
2,103,438
(62.95)
Total Comprehensive Income
12,502,580
7,068,166
5,434,414
(76.89)
Note: Analysis of variations exceeding 20%:
Increase in non-operating income and expenses: Mainly due to the profits from disposal of property,
plant and equipment in current year.
Increase in profit before tax: Mainly due to the increase in net profit and net non-operating income.
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.
Decrease in other comprehensive income (after tax) loss: Mainly due to the decrease in the loss of
exchange differences on translation of foreign financial statements.
Increase in total comprehensive income: Mainly due to the increase in profit before tax.
■ 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 remains, geopolitical risks intensified by the Ukraine war and the US and China competition,
as well as the consumer demand impacted from inflations, which all caused the uncertainties in the global
economic and industrial changes for 2022, where the Company has to react with operational flexibility and
solid execution. Despite many industrial research institutions hold the conservative views for the upcoming
year, the Company’s forward progress hasn’t been stopped from taking numerous new measures with
customers. Moreover, as digitization, automation and teamwork continue to develop, the Company is going
to capture the new opportunities via related technologies and products development, among them, the 5G
technologies, 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 130~135 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
strategies.
192
7.3 Analysis of Cash Flow
7.3.1 Cash Flow Analysis for the Current Year
Cash and Cash
Equivalents,
Beginning of Year
(1)
89,126,923
Net Cash Flow
from Operating
Activities
(2)
(23,834,383)
Other Cash
Inflow
(Outflow)
(3)
9,869,563
Cash Surplus
(Deficit)
(1)+(2)+(3)
75,162,103
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 2021 cash flows:
•Net cash outflow in operating activities: Mainly due to profit making and increase of net changes of
Accounts receivable, inventory, accounts payables 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 2021
Property, plant and
equipment
Cash flow
generated from
operations and
loans
7.4.2 Expected Benefits
2022
11,737,557
11,737,557
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.
193
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 2021 consolidated profits from investment using the equity method came to approximately TWD 448
million, coming mainly from the performance of Ascendant Private Equity Investment Ltd, and Lipo Holding
Co., Ltd.
3. 2022 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
directions:
194
(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
Items
Net interest revenue and expense
Net gain on foreigne currency exchange transaction
(including valuation of financial instruments)
Unit: TWD Thousands; %
2021
968,177
542,569
Regarding interest rate and inflation, the company will monitor interest rate changes closely and strive for most
favorable loan rate, use idle funds in low-risk bank deposits and money market funds to reduce the impact of
interest rate and inflation changes on the company.
The Company is export-oriented, sales and purchase of the Company are mainly accounted in USD. 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 mainly utilizes hedging such as forward foreign exchange contracts
and swaps to minimize the risks of exchange rate movements. In the future, the quotation strategy will be adjusted
in a timely manner depending on the fluctuation of the exchange rate. The financial department collects and
evaluates the relevant information and trend of the foreign currency market, and accommodate the needs of fund
and make foreign currency exchange transaction in time to reduce risk.
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 is engaged in endorsement and guarantee activities which are only negotiated between subsidiaries
and the parent company. The arrangements are covered by proper Endorsement and Guarantee Procedures.
4. The Company uses a hedging strategy 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.
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”.
195
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 2022 R&D expenses are expected to be TWD 16.5
billion.
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 2021, 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
196
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, and has placed 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 2021 nor was there any significant event that affected the Company image in any way.
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
197
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
■ 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 2021.
7.7 Other material issues: None
198
VIII. Special Disclosure
8.1
Summary of Affiliated Companies (As of Dec 31, 2021)
8.1.1 Affiliated enterprises report
1. Chart
199
4 1 Mithera Capital Io LP 99.00% 46.42% Compal Broadband Networks Netherlands B.V. 100% Shennona Corporation 100% 18.52% Compal Electronica da Amazonia Ltda. 51.7% 48.3% CGS Technology (Poland) sp.z.o.o Compal Wise Electronic (Vietnam) Co. Ltd 100% 100% Compal USA (Indiana), Inc. 100% 100% Kinpo&Compal Group Assets Development Corporation 70% 10% 59.10%
200
4 Arcadyan Technology Affiliated Business Organization Chart Henghao Technology Co., Ltd. Affiliated Organization Chart Allied Power Affiliated Business Organization Chart General Life Biotechnology Affiliated Business Organization Chart UniCore Biomedical Affiliated Business Organization Chart Arcadyan Technology (Vietnam) Co., Ltd. 100% Great Arch Group Ltd. Leading Images Limited Astoria Networks Inc. Astoria Networks GmbH 31.6% 100% 100% 100% 100% 100% Arcadyan Technology Corp. (Russia),LLC 100% Note 1: Complete the liquidation process on July, 2021. Note 2: UniCore Biomedical Co., Ltd. and Raycore Biotech Co., Ltd. merged on February, 2022. UniCore Biomedical Co., Ltd. is the surviving company，Raycore Biotech Co., Ltd. is a disappearing company. Arcadyan India Private Limited. 99% 1%
2. Backgrounds of affiliated enterprises (December 31, 2021)
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. 189, Qianjin Dong Lu,
Kunshan Development Zone,
Jiangsu Province, 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
201
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
General investments
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. 189, Qian Jin East
Road, Development Zone,
Kunshan, Jiangsu, P.R. 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. 189, Qian Jin East
Road, Development Zone,
Kunshan, Jiangsu, P.R. China
No. 435 Weiye Road, Kunshan
City Development Area, Jiangsu,
China
No. 189, Qian Jin East
Road, Development Zone,
Kunshan, Jiangsu, P.R. China
No. 189, Qian Jin East
Road, Development Zone,
Kunshan, Jiangsu, P.R. 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),Shuangliu County,
Chengdu, Sichuan, China
202
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
Compal USA
(Indiana), Inc.
2010.12.16
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
Address
Paid-up capital Main business activities or products
No. 6, Shenglong Street, Wuhou
District, Chengdu, Sichuan
USD 800
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 5,050
General investments
US$5,400
OEM of automotive electronic
products
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
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
1 Technology Way Logansport,
Indiana 46947, 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
Ba Thien Industrial Zone, Ba
Hien Town, Binh Xuyen District,
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
203
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 India
Private Limited
2021.03.25
Arcadyan
Technology Limited
2016.08.16
Arcadyan
Technology
Australia Pty Ltd
Arcadyan
Technology
Corporation
(Russia), LLC.
Arcadyan Holding
(BVI) Corp.
2017.03.28
2020.06.02
2007.03.07
Sinoprime Global
Inc.
2004.12.29
Arcadyan
Technology
(Shanghai) Corp.
Arcadyan
Technology
(Vietnam) Co., Ltd.
2002.04.17
2019.03.26
Arch Holding (BVI)
Corp.
2007.05.24
Address
Paid-up capital Main business activities or products
BRL 20,109
Production and after-sale service of
notebooks, cellphones and electronics
INR 386,000
Production and after-sale service of
cellphones
BRL 23,500
Production of notebooks and
electronics
TWD 2,164,926
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
INR 35,000
Sale of wireless networking products
GBP 50
Technical support for wireless
networking products
AUD 50
Sale of wireless networking products
RUB 20,000
Sale of wireless networking products
USD 64,780
General investments
USD 29,050
General investments
USD 8,100
Research and sale of wireless
networking products
USD 29,000
Production and sale of wireless
products
USD 10,550
General investments
Rua Kanebo 175, Galpões C1 a
C6, e C12 Distrito Industrial,
Jundiaí, São Paulo, CEP:13213-
090, Brazil
Flat No. 412A, Building No.43,
Chiranjiv Tower, Nehru Place,
New Delhi, 110019, 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
Travessa Francisca Rios n° 48,
Centro, Pouso Alegre, Minas
Gerais
Fifth Floor, Unit-F516, The
Sapphire, Sector 49,
Gurgaon,Gurgaon, Haryana,
122018
Charlotte House 500 Charlotte
Road Sheffield South Yorkshire
S2 4ER, 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
Room 1308, Block 20, No. 487
Tianlin Road, Xuhui
District,Shanghai, China
Lot D4-5-6, Thang Long Vinh
Phuc Industrial Zone, Thien Ke
Commune, Binh Xuyen District,
Vinh Phuc Province, Vietnam
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, British Virgin Islands
204
Address
Paid-up capital Main business activities or products
Company name
Compal Networking
(Kunshan) Co., Ltd.
Date of
establishment
2006.06.26
Zhi-Bao Technology
Inc.
Tatung Technology
Inc.
2009.08.10
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
2001.02.13
2012.02.03
Compal Broadband
Networks Inc.
2009.08.19
No. 520 Nanbang Road,
Economic and Technological
Development Zone, Kunshan,
Jiangsu, China, China
8F., No. 8, Sec. 2, Guangfu Rd.,
East Dist., Hsinchu City
10F, No. 288, Section 6, Civic
Boulevard, Xinyi District, Taipei
City
1 Chome-2-18, Mita, Minato-ku,
Tokyo-to, Japan
Unit 25,2nd Floor,Nia Mall,
Saleufi Street, Apia, Samoa
Unit 25,2nd Floor,Nia Mall,
Saleufi 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
USD 12,450
Production and sale of wireless
products
TWD 349,800
General investments
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 684,704
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
2010.05.07
2010.12.14
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
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
205
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
Company name
Rayonnant
Technology Co., Ltd
Compal Rayonnant
Holdings Ltd.
Date of
establishment
2010.03.23
2011.12.02
Allied Power
Holding Corp.
2005.04.07
Primetek
Enterprises Ltd.
2005.01.28
2010.03.31
Address
Paid-up capital Main business activities or products
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
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
TWD 295,000 Manufacturing and sale of computers
USD 12,500
and peripherals
General investments
USD 21,151
General investments
USD 3,151
General investments
USD 18,000
General investments
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.
Etrade
Management Co.,
Ltd.
Compal
Communications
(Nanjing) Co., Ltd.
Compal Digital
Communications
(Nanjing) Co., Ltd.
Compal Wireless
Communications
(Nanjing) Co., Ltd.
2010.06.04
No.9 Tainan Road,Industry Park,
Taicang, Jiangsu, China
USD 18,000
1992.04.13
2008.03.05
1361 EL Camino Real, Santa
Clara, CA 95050, USA
Jędrzejowska 85
93-636, Łódź, Poland
2020.09.15
Jędrzejowska 85
93-636, Łódź, Poland
USD 100
PLN 6,804
PLN 12,296
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
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
2008.10.27
2007.08.09
2014.02.19
1999.01.16
2000.07.05
2003.09.23
2004.03.26
2006.02.13
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
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
206
Company name
Webtek Technology
Co., Ltd.
Date of
establishment
2000.07.07
Forever Young
Technology Inc.
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.
Shennona
Corporation
HippoScreen
Neurotech Corp.
2018.01.25
2018.01.10
2019.01.28
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
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
USD 100
General investments
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
USD 1
General investments
No. 581, Ruiguang Road, Neihu
District, Taipei City
8F, No. 385, Yangguang St.,
Neihu District, Taipei City
TWD 290,000
TWD 100,000
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
1361 EL Camino Real, Santa
Clara, CA 95050, USA
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 200,000
USD 1,100
TWD 100,000
Management consultation, leasing, and
wholesale/retail of medical equipment
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
Research and development of
microelectromechanical (MEMS)
technology in semiconductor process
and manufacture and production of
electronic components
SHENNONA CO.,
LTD.
2019.03.21
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 6,000
Aco Healthcare
Co.,Ltd.
2019.02.20
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 30,748
Starmems
Semiconductor
Corp.
2021.04.21
6, No. 10, Taiyuan 1st Street,
Zhubei City, Hsinchu County
TWD 100,000
207
Date of
establishment
2021.12.21
Company name
Kinpo&Compal
Group Assets
Development
Corporation
Address
Paid-up capital Main business activities or products
No. 581 &581-1, Ruiguang
Road, Neihu District, Taipei City
TWD 750,000
Real estate development leasing and
related management business
3. Business activities and relationships of affiliated enterprises (December 31, 2021)
Industry
category
Investment
holding
company
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Compal International Holding Co., Ltd.
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.
Holds investment interest in Compal International Holding (HK)
Limited, Prospect Fortune Group Ltd., Jenpal International Ltd., and
Fortune Way Technology Corp.
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., Mithera
Capital Io LP., and Compal USA (Indiana), Inc.
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
208
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
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.
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. ,
Arcadyan do Brasil Ltda. and Arcadyan India Private Limited
Holds investment interest in Exquisite Electronic Co., Ltd.
Holds investment interest in Tatung Home Appliances (Wu Jiang) Co.,
Ltd.
General investments
General investments
Acbel Telecom Inc. (Note)
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.
Arcadyan India Private Limited
Compal Broadband Networks Belgium
BVBA
Compal Broadband Networks
Netherlands B.V.
Aco Healthcare Co.,Ltd.
Starmems Semiconductor Corp.
Compal Electronics, Inc.
Sale of wireless networking 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
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
Research and development of microelectromechanical (MEMS)
technology in semiconductor process and manufacture and
production of electronic components
Manufacturing, processing and trading of notebooks, computer
monitors, LCD TVs, cellphones, and electronic parts
Compal Electronics Technology (Kunshan) Production of notebooks, cellphones and electronics
209
Electronic
products
wholesaling
Electronic
products
manufacturing
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Production of notebooks and electronics
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 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 Electronics (Chongqing) Co., Ltd. Development, production and sale of notebooks and related
Compal Optoelectronics (Kunshan) Co.,
Ltd.
Compal Display Electronics (Kunshan)
Co., Ltd.
Amexcom Electronics, Inc.
Compal Electronics (Chengdu) Co., Ltd.
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.
Production and sale of LCD TVs
Sale and maintenance of LCD TVs
Development and production of notebooks, tablets, digital products,
networking switches, wireless APs, and auto electronics
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
210
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
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.
Compal Wise Electronic
(Vietnam) Co., Ltd.
Construction
and
development
Leasing and
management
consulting
Compal USA (Indiana), Inc.
Compal Development and Management
(Vietnam) Co., Ltd.
Kinpo&Compal Group Assets
Development Corporation
UniCore Biomedical Co., Ltd.
HippoScreen Neurotech Corp.
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
Production and sale of cellphones, tablets, smart watches,
communication equipments and electronics, and provision of
relevant technical services
OEM of automotive electronic products
Construction and investment of infrastructures at Ba-Thien Industrial
Zone, Vietnam
Real estate development leasing and related management business
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
General Life Biotechnology Co., Ltd.
Manufacturing and sale of medical equipment
Instruments and International Trade
Shennona Corporation
Medical care IoT business
Arcadyan Technology (Shanghai) Corp.
Research and sale of wireless networking products
Arcadyan Technology Limited
Technical support for wireless networking products
Manufacturing
and sale of
medical
equipment
Medical care
Technical
service
Note：The company had been resolved by the Board of Directors to be dissolved and liquidated on October 28, 2021
4. Directors, Supervisors, and President of affiliated enterprises
December 31, 2021 Unit: TWD Thousands; shares; %
Company name
Title
Name or name of representative
Compal Electronics,
Inc.
Chairman
Director and
President
Director
Director
Director
Director
Director
President and
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
Chiung-Chi Hsu
211
Shares held
Shares (Note)
8,975,401
35,352,587
5,000,000
151,628,692
7,896,867
9,204,201
8,022,874
6.618,618
2,117,731
Shareholding
percentage
0.20%
0.80%
0.11%
3.44%
0.18%
0.21%
0.18%
0.15%
0.05%
Company name
Title
Name or name of representative
Ming-Chih Chang
Director
Anthony Peter Bonadero
Director
Sheng-Hua Peng
Director
Independent Director Min-Chih Hsuan
Independent Director Duei Tsai
Independent Director Wen-Chung Shen
Representative
Representative
Director
Shares held
Shares (Note)
1,919,489
0
835,000
0
0
2,836,000
5,000,000
4,117,569
Shareholding
percentage
0.04%
0%
0.02%
0.00%
0.00%
0.06%
0.11%
0.09%
53,001,000
100.00%
53,001,000
100.00%
74,802,500
100.00%
74,802,500
100.00%
TWD 332,160
100.00%
TWD 332,160
100.00%
TWD 332,160
100.00%
TWD 332,160
100.00%
0
0.00%
TWD 332,160
100.00%
TWD 332,160
100.00%
TWD 332,160
100.00%
TWD 332,160
100.00%
0
0.00%
TWD 664,320
100.00%
TWD 664,320
100.00%
TWD 664,320
100.00%
TWD 664,320
100.00%
0
0.00%
TWD 553,600
100.00%
TWD 553,600
100.00%
TWD 553,600
100.00%
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 )
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
TWD 553,600
100.00%
0
0.00%
212
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.
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
0
0
1,000
1,000
0.00%
0.00%
Director
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
7,350,000
7,350,000
Supervisor
Supervisor
TWD 8,680
TWD 8,680
TWD 27,680
TWD 27,680
TWD 27,680
TWD 27,680
President
Director
Fortune Way
Technology Corp.
Just International
Ltd.
Compower Global
Service Co., Ltd.
President
Executive Director
Kunshan Botai
Electronics Co., Ltd.
Jenpal International
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: 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 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 Smart
Device (Chongqing)
Co., Ltd.
Compal Display
Holding (HK)
Limited
Compal Electronics
(China) Co., Ltd.
Compal
Optoelectronics
President
Chairman
President
Chairman
TWD 1,024,160
TWD 1,024,160
TWD 1,024,160
TWD 1,024,160
TWD 260,395
TWD 260,395
TWD 260,395
TWD 334,928
TWD 260,395
14,900,000
14,900,000
48,010,000
62,297,500
62,297,500
48,010,000
Supervisor
Supervisor
Chairman
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%
100.00%
Director
Director
Director
Director
Director
Director
Director
Director
0.00%
0.00%
0
0
213
Company name
Title
Name or name of representative
(Kunshan) Co., Ltd. Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Director
Compal System
Trading (Kunshan)
Co., Ltd.
Compal Investment
(Jiangsu) Co., Ltd.
Compal Display
Electronics
(Kunshan) Co., Ltd.
Compal
International
Ltd.
Compal Electronics
International Ltd.
Smart International
Trading Ltd.
Director
Director
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
(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 )
214
Shares held
Shares (Note)
Shareholding
percentage
TWD 334,928
100.00%
TWD 334,928
100.00%
TWD 334,928
100.00%
0
0.00%
TWD 38,752
100.00%
TWD 38,752
100.00%
TWD 38,752
100.00%
TWD 38,752
100.00%
0
0.00%
TWD 431,808
100.00%
TWD 431,808
100.00%
TWD 431,808
100.00%
TWD 431,808
100.00%
0
0.00%
TWD 415,200
100.00%
TWD 415,200
100.00%
TWD 415,200
100.00%
TWD 415,200
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%
Company name
Title
Name or name of representative
Amexcom
Electronics, Inc.
Mexcom
Technologies, LLC
Mexcom
Electronics, LLC
Big Chance
International Co.,
Ltd.
Center Mind
International Co.,
Ltd.
Director
Director
Director
President
Director
Director
Director
Director
Director
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
Compal Electronics
(Chengdu) Co., Ltd.
Compal
Management
(Chengdu) Co., Ltd.
Prisco International
Co., Ltd.
Compal Electronics
(Chongqing) Co.,
Ltd.
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 )
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 )
215
Shares held
Shares (Note)
Shareholding
percentage
1,000,000
100.00%
1,000,000
100.00%
1,000,000
0
TWD 28
100.00%
0.00%
100.00%
TWD 227,917
100.00%
90,820,000
100.00%
90,820,000
100.00%
80,820,000
100.00%
80,820,000
100.00%
TWD 2,237,098
100.00%
TWD 2,237,098
100.00%
TWD 2,237,098
100.00%
TWD 2,237,098
100.00%
0
0.00%
TWD 2,214,400
100.00%
TWD 2,214,400
100.00%
TWD 2,214,400
100.00%
TWD 2,214,400
100.00%
0
0.00%
TWD 22,144
100.00%
TWD 22,144
100.00%
TWD 22,144
100.00%
TWD 22,144
100.00%
0
0.00%
10,000,000
100.00%
10,000,000
100.00%
TWD 276,800
100.00%
TWD 276,800
100.00%
Company name
Title
Name or name of representative
Director
Supervisor
President
Director
Director
Core Profit Holdings
Ltd.
Billion Sea Holdings
Ltd.
Director
Mithera Capital Lo
LP
Compal USA
(Indiana), Inc.
High Shine
Industrial Corp.
Director
Director
Chairman
Director
Director
Director
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
Director and
President
Director
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 )
Billion Sea Holdings Ltd.
(Representative: Chung-Pin Wong )
Billion Sea Holdings Ltd.
(Representative: Jui-Tsung Chen )
Billion Sea Holdings Ltd.
(Representative: Ta-Chun Wang)
Compal Electronics, Inc. and Billion Sea
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.
216
Shares held
Shares (Note)
Shareholding
percentage
TWD 276,800
100.00%
TWD 276,800
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 138,400
99.00%
1,000
1,000
1,000
100.00%
100.00%
100.00%
79,700,000
100.00%
79,700,000
100.00%
67,000,000
100.00%
67,000,000
100.00%
TWD 1,854,560
100.00%
12,700,000
100.00%
12,700,000
100.00%
TWD 351,536
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
90,000,000
100.00%
100.00%
Company name
Title
Name or name of representative
Hong Ji
Capital Co., Ltd.
Supervisor
Chairman
Director and
President
Director
Supervisor
Hong Jin
Investment Co., Ltd.
Chairman
Director and
President
Director
Supervisor
President
(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
Compalead
Eletrônica do Brasil
Indústria e
Comércio Ltda.
Compal Electronica
da Amazonia Ltda
Compal Electronics
India Private
Limited
Arcadyan
Technology Corp.
Arcadyan
Technology N.A.
Corp.
Arcadyan Germany
Technology GmbH
Arcadyan
Technology
Corporation Korea
Arcadyan do Brasil
Ltda.
Arcadyan
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
President
Managers
Director
Arcadyan Technology Corp.
(Representative: Yen-Ju Lin)
Yen-Ju Lin
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Managers
Nien-Che, Hsiung
Director
Arcadyan Technology Corp.
217
Shares held
Shares (Note)
Shareholding
percentage
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
0
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
41,304,504
19.08%
41,304,504
19.08%
41,304,504
19.08%
41,304,504
19.08%
0
202,669
0
0
0
1,000
0
500
0.00%
0.09%
0.00%
0.00%
0.00%
100.00%
0.00%
100.00%
20,000
100.00%
964,510
50,000
99.00%
100.00%
Company name
Title
Name or name of representative
Technology Limited
Arcadyan
Technology
Australia Pty Ltd.
Director
Director
Director
Director
(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 )
Shares held
Shares (Note)
Shareholding
percentage
50,000
50,000
50,000
50,000
100.00%
100.00%
100.00%
100.00%
Arcadyan
Technology
Corporation
(Russia), LLC.
Arcadyan Holding
(BVI) Corp.
Sinoprime Global
Inc.
Arcadyan
Technology
(Vietnam)Co., Ltd
Arch
Holding
(BVI) Corp.
Arcadyan
Technology
(Shanghai) Corp.
Compal Network
Information
Technology
(Kunshan) Co., Ltd.
Zhi-Bao Technology
Inc
Managers
Isakova Nadezhda Pavlovna
0
100.00%
Chairman
Director
Chairman
Director
Chairman
Director
Chairman
Director
Chairman
Director
Director
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
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)
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.
218
64,780,148
100.00%
64,780,148
100.00%
29,050,000
100.00%
29,050,000
100.00%
0
100.00%
34,900
34,900
100.00%
100.00%
TWD 224,208
100.00%
TWD 224,208
100.00%
TWD 224,208
100.00%
TWD 224,208
100.00%
TWD 224,208
100.00%
TWD 224,208
100.00%
0
0.00%
TWD 344,616
100.00%
TWD 344,616
100.00%
TWD 344,616
100.00%
TWD 344,616
100.00%
0
34,980,000
34,980,000
0.00%
100.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Director
Director
Director
Supervisor
Supervisor
Supervisor
President
Director
Director
Tatung Technology
Inc.
Tatung Technology
of Japan Co., Ltd.
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
(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: Fong-Yu, Lu)
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng )
Arcadyan Technology Corp.
(Representative: Chien-Lin Chen)
Arcadyan Technology Corp.
(Representative: Nien-Che, Hsiung)
Arcadyan Technology Corp.
(Representative: Chih-Fang Lee)
Shang Chi Investment Co., Ltd.
(Representative: Chia-Tien Lin )
Chunghwa Investment Holding Company
(Representative: Chih-Chen Chien)
Ya-Ling Chiang
Chih-Cheng Huang
Chi Sheng Investment Co., Ltd.
(Representative: Chang-Chuan Lin)
Kuei-Che Huang
Tatung Technology Inc.
(Representative: Fong-Yu, Lu)
Tatung Technology Inc.
(Representative: Chao-Peng Tseng)
Tatung Technology Inc.
(Representative: Chao-Peng Tseng)
Tatung Technology Inc.
(Representative: Fong-Yu, Lu)
Quest International Group Co., Ltd.
(Representative: Chao-Peng Tseng)
Quest International Group Co., Ltd.
(Representative: Fong-Yu, Lu)
Exquisite Electronic Co., Ltd.
(Representative: Fong-Yu, Lu) )
Exquisite Electronic Co., Ltd.
(Representative: Chao-Peng Tseng)
Exquisite Electronic Co., Ltd.
(Representative: Chung-Pao Liu)
Exquisite Electronic Co., Ltd.
(Representative: Shih-Wei Huang)
Chung-Pao Liu
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu) )
AcBel Polytech Inc.
219
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
2,727,272
1,062,935
700
700
0.00%
0.00%
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 92,728
100.00%
TWD 92,728
100.00%
TWD 92,728
100.00%
TWD 92,728
100.00%
0
4,494,111
4,494,111
4,292,216
0.00%
51.08%
51.08%
48.78%
Company name
Title
Name or name of representative
Arcadyan India
Private Limited
Supervisor
President
Director
Director
Director
Compal Broadband
Networks Inc.
Chairman
Director
Director
Director
(Representative: Chieh-Li Hsu)
Shih-Wei Huang
Fong-Yu, Lu
Arcadyan Technology Corp.
(Representative: Nien-Che, Hsiung)
Arcadyan Technology Corp.
(Representative: Yi-Shu Lee )
Arcadyan Technology Corp.
(Representative: RAJ KUMAR BHOLA)
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
0
0
0.00%
0.00%
3,500,000
100.00%
3,500,000
100.00%
3,500,000
100.00%
29,060,176
42.44%
29,060,176
42.44%
3,575,000
5.22%
29,060,176
42.44%
0
0
0
1,286,810
0.00%
0.00%
0.00%
1.88%
20,300
100.00%
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
Director
Compal Broadband Networks Inc.
(Representative: Shao- Yang Chiu )
20,300
100.00%
Chairman
Vice Chairman
and President
Director
Director
Supervisor
Director
Director
Director
Director
Chairman
Director
Director
Supervisor
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
220
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 1,107,200
100.00%
TWD 1,107,200
100.00%
TWD 1,107,200
100.00%
TWD 1,107,200
100.00%
0
0.00%
Company name
Title
Name or name of representative
Lucom Display
Technology
(Kunshan) Ltd.
Mactech Inc.
Rayonnant
Technology Co., Ltd.
Compal Rayonnant
Holdings Ltd.
Allied Power
Holding Corp.
Primetek
Enterprises Ltd.
Rayonnant
Technology
Holdings (HK) Co.,
Ltd.
Rayonnant
Technology
(Taicang) Co., Ltd.
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Director
Director
Director
Supervisor
Chairman
Director and
President
Director
Supervisor
Director
Director
Director
Director
Director
Director
Director
Director
Chairman
Director
Director
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)
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.
221
Shares held
Shares (Note)
Shareholding
percentage
TWD 415,200
100.00%
TWD 415,200
100.00%
TWD 415,200
100.00%
TWD 415,200
100.00%
0
21,756,192
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%
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 498,240
100.00%
TWD 498,240
100.00%
TWD 498,240
100.00%
Company name
Title
Name or name of representative
Supervisor
President
Director
Director
Director
Director
Director
Director
Director
Director
Chairman
Director and
President
Director
Director
Director
Bizcom Electronics,
Inc.
Compal Europe
(Poland) Sp. z o.o.
CGS Technology
(Poland)
Sp. z.o.o.
Auscom
Engineering Inc.
Flight Global
Holding Inc.
RiPAL Optotronics
Co., Ltd.
Chairman
Compal Electronics
(Holding) Ltd.
Etrade
Management Co.,
Ltd.
Compal
Communications
(Nanjing) Co., Ltd.
Director
Director
Supervisor
Director
Director
Director
Chairman
Director
Director
(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.
(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
222
Shares held
Shares (Note)
Shareholding
percentage
TWD 498,240
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%
245,911
100.00%
245,911
100.00%
3,000,000
100.00%
3,000,000
100.00%
3,000,000
100.00%
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 747,360
100.00%
TWD 747,360
100.00%
TWD 747,360
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding
percentage
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Director
Chairman and
President
Director
Director
Supervisor
Director
Compal Digital
Communications
(Nanjing) Co., Ltd.
Compal Wireless
Communications
(Nanjing) Co., Ltd.
Webtek Technology
Co., Ltd
Forever Young
Technology Inc.
HANHELT
Communications
(Nanjing) Co., Ltd.
Compal Wise
Electronic
(Vietnam) Co., Ltd.
Unicom Global. Inc. Chairman
Director
Director
Supervisor
Chairman
Director
Director
Palcom
International
Corporation
Display Holding (HK) Limited
(Representative: Chung-Shing Tan)
Etrade Management Co., Ltd. and Compal
Display Holding (HK) Limited
(Representative: Guo-Dung Yu)
Ming-Chih Chang
Etrade Management Co., Ltd.
(Representative: Sheng-Hua Peng)
Etrade Management Co., Ltd.
(Representative: Cheng-Chiang Wang)
Etrade Management Co., Ltd.
(Representative: Chung-Shing Tan)
Etrade Management Co., Ltd.
(Representative: Guo-Dung Yu)
Ming-Chih Chang
Etrade Management Co., Ltd.
(Representative: Sheng-Hua Peng)
Etrade Management Co., Ltd.
(Representative: Cheng-Chiang Wang)
Etrade Management Co., Ltd.
(Representative: Chung-Shing Tan)
Etrade Management Co., Ltd.
(Representative: Guo-Dung Yu)
Ming-Chih Chang
Compal Electronics, Inc.
(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: Jyh-Shyan Liang)
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)
223
TWD 747,360
100.00%
0
0.00%
TWD 160,544
100.00%
TWD 160,544
100.00%
TWD 160,544
100.00%
TWD 160,544
100.00%
0
0.00%
TWD 1,356,320
100.00%
TWD 1,356,320
100.00%
TWD 1,356,320
100.00%
TWD 1,356,320
100.00%
0
100,000
0.00%
100.00%
50,000
100.00%
TWD 55,360
100.00%
TWD 55,360
100.00%
TWD 55,360
100.00%
TWD 55,360
100.00%
TWD 55,360
100.00%
29,000,000
100.00%
29,000,000
100.00%
29,000,000
100.00%
29,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
Company name
Title
Name or name of representative
Compalead
Electronics B.V.
General Life
Biotechnology Co.,
Ltd.
Giant Rank Trading
Limited
UniCore Biomedical
Co., Ltd.
Raycore Biotech
Co., Ltd.
Shennona
Corporation
Supervisor
Director
Director
Chairman
Director
Director
Director
Director
Supervisor
Supervisor
Director
Chairman
Director
Director
Director
Director
Supervisor
Chairman
Director
Director
Supervisor
Director
Director
Director
HippoScreen
Neurotech Corp.
Chairman
Director
Director
Director
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
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
224
Shares held
Shares (Note)
Shareholding
percentage
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
3.31%
8.40%
0.00%
-
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%
9,100,000
9,100,000
9,100,000
54,000
91.00%
91.00%
91.00%
0.54%
Company name
Title
Name or name of representative
SHENNONA CO.,
LTD.
Aco Healthcare
Co.,Ltd.
Starmems
Semiconductor
Corp.
Kinpo&Compal
Group Assets
Development
Corporation
Director
Supervisor
Chairman
Chairman
Director
Director
Director
Director
Supervisor
Chairman
Vice Chairman
Director
Supervisor
Chairman
Director
Director
Director
Supervisor
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
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Yu- Ho Wang)
Realsun Investments Co., Ltd.
(Representative: Hou-Wei Lin)
Shiu-Hung Lu
Compal Electronics, Inc.
(Representative:Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
AcBel Polytech Inc.
(Representative: Chieh-Li Hsu)
Ching-Hsiung Lu
Shares held
Shares (Note)
90,000
0
600,000
Shareholding
percentage
0.9%
0.00%
100.00%
100,000,000
52.04%
100,000,000
52.04%
100,000,000
22,227,778
22,227,778
0
3,500,000
52.04%
11.57%
11.57%
0.00%
35.00%
3,500,000
35.00%
2,300,000
23.00%
0
0.00%
52,500,000
70.00%
52,500,000
70.00%
52,500,000
70.00%
22,500,000
0
30.00%
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 27.68, CNY 1: TWD 4.3399, and VND 1: TWD 0.001222.)
225
5. Overview of Operating Status for Affiliated Companies in 2021
Company Name
Capital
Total Asset
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
447,348,214
335,987,949
111,360,265
1,171,613,858
7,578,392
12,632,667
Compal International Holding Co.,
Ltd. and subsidiaries
Just International Ltd.
and subsidiaries
Big Chance International Co., Ltd.
and subsidiaries
1,787,680
120,864,262
83,466,918
37,397,344
548,369,589
2,013,423
3,060,284
1,460,443
81,749,017
72,171,105
9,577,912
179,309,786
509,704
2,038,308
2,636,051
36,684,653
29,505,456
7,179,197
202,550,016
861,051
788,352
Core Profit Holdings Ltd.
4,318,860
7,499,427
919,144
6,580,283
139,805
(37,464)
(569,898)
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
2,370,974
20,690,805
20,165,644
525,161
35,581,039
(878,055)
(856,715)
5,000,000
13,720,531
7,858,635
5,861,896
10,698,284
31,851
900,000
1,000,000
295,000
2,166,154
1,136,939
359,348
19,776
151
130
2,146,378
1,136,788
359,218
-
-
-
(261)
(196)
(191)
18,876
145,664
89,224
39,395
200,000
107,799
5,918
101,881
16,507
(21,239)
(21,226)
Shennona Corporation
32,665
1,098
-
1,098
-
(92)
(92)
2,164,926
33,901,113
20,978,000
12,923,113
38,240,058
2,199,087
1,701,800
684,704
3,239,504
1,614,787
1,624,717
2,906,921
83,833
32,744
Arcadyan Technology Corp.
and subsidiaries
Compal Broadband Networks Inc.
and subsidiaries
Henghao Technology Co., Ltd.
and subsidiaries
2.90
57.74
42.46
8.68
(3.88)
(10.75)
0.04
1.62
0.89
1.34
(1.06)
(0.04)
8.60
0.49
200,150
8,286,082
8,770,235
(484,153)
11,927,618
19,230
(425,641)
(21.27)
226
Operating
Operating
Net loss/profit for the
EPS (in TWD )
income
period (after tax)
(After tax)
Company Name
Capital
Total Asset
Total liabilities
Net worth
Mactech Co., Ltd.
Ripal Optotronics CO, LTD.
411,458
60,000
663,687
157,858
119,886
55,784
543,801
102,074
revenue
263,977
143,525
15,205
21,580
General life Biotechnology Co., Ltd.
and subsidiaries
300,000
753,490
422,886
330,604
408,407
24,914
Rayonnant Technology Holdings Ltd.,
295,000
782,278
631,493
150,785
2,023,818
11,041
377,328
1,169,796
940,938
228,858
2,290,790
59,114
Compal Rayonnant Holdings Ltd. and
subsidiaries
Bizcom Electronics, Inc.
Compal Europe (Poland) Sp.z o.o.
CGS Technology (Poland) Sp.z o.o.
Auscom Engineering Inc.
36,369
90,156
89,669
101,747
441,032
286,153
86,856
182,943
Flight Global Holding Inc.
2,754,741
4,826,929
Compalead Electronics B.V.
197,463
767,803
Etrade Management Co., Ltd.&
subsidiaries
Webtek Technology Co., Ltd.
Forever Young Technology Inc. &
subsidiaries
Unicom Global Inc.
Palcom International Corporation
3,340
1,575
290,000
100,000
36,473
289,250
1
57,596
74,599
-
404,559
(3,097)
86,855
125,347
4,752,330
767,803
87,229
221,317
-
200,043
-
-
(20,460)
(7,101)
(1,228)
13,073
(144)
(729)
679,564
-
679,564
-
(92)
1,903,478
598,926
1,304,552
263,097
12,036
617,034
135,333
654,337
22,210
(37,303)
113,123
1,007,988
89,638
59,202
5,500
-
41,445
21,471
24,917
35,093
43,721
(19,042)
(20,160)
(1,700)
4,074
(62,830)
1,706
494
12,658
53,840
4,426
-
Compal Electronics (Holding) Ltd.
34
3,260,334
-
3,260,334
-
HippoScreen Neurotech Corp.
100,000
55,252
SHENNONA CO., LTD.
Aco Healthcare Co.,Ltd.
6,000
30,748
19,038
62,536
4,279
15,918
5,865
50,973
3,120
56,671
227
1,206
(25,226)
(25,053)
31,232
404
382
8,713
(34,045)
(31,249)
2,224,029
8,245,694
8,242,959
2,735
17,170,814
337,322
336,037
1.01
3.58
0.83
1.19
3.50
(190.42)
(148.15)
(6.91)
1.36
(0.70)
0.27
4.67
4.94
253.16
1.86
0.44
-
(2.51)
0.64
(0.16)
Company Name
Capital
Total Asset
Total liabilities
Net worth
Operating
Operating
Net loss/profit for the
EPS (in TWD )
revenue
income
period (after tax)
(After tax)
Starmems Semiconductor Corp.
Kinpo&Compal Group Assets
Development Corporation
100,000
101,654
4,593
97,061
2,840
(3,712)
(2,940)
750,000
750,120
-
750,120
-
-
120
(0.29)
-
6. Common shareholders in controlling and controlled companies: None
228
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, 2021 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 15, 2022
8.1.3 Affiliation reports: None
229
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:
Unit: TWD thousands; Shares; %
Percentage
Date of
Name of
Share Capital
Funding
of Shares
Acquisition
Subsidiary
Acquired
Source
Held by the
or
Company
Disposition
Shares and
Shares and
Amount
Amount
Acquired
Disposed
Investment
Gain (Loss)
Shareholdings and
Amount as of
Collateralized
March 31, 2022
Amount of
Endorsements
Made for the
Subsidiary
Amount Loaned
to the
Subsidiary
Panpal
Technology
Corporation
Gempal
Technology
Co., Ltd.
TWD
Proprietary
5,000,000,000
capital
TWD
Proprietary
900,000,000
capital
100%
100%
-
-
-
-
-
-
-
-
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 2021 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
230
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, 2021 and 2020
Address:
Telephone:
No.581 & 581-1, Ruiguang Rd., Neihu District, Taipei, Taiwan
(02)8797-8588
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
10～38
38～39
39～91
91～93
94
94
94
94
95
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information
95, 99～113
96, 114～118
96, 119～121
96
96～98
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, 2021 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 15, 2022
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, 2021 and 2020, and the
consolidated statement of comprehensive income, changes in equity and cash flows for the years ended
December 31, 2021 and 2020, 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, 2021 and 2020, and its consolidated financial
performance and its consolidated cash flows for the years then ended December 31, 2021 and 2020, 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 audits in accordance with the Regulations Governing Auditing and Attestation of Financial
Statements by Certified Public Accountants 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.
4-1
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, 2021 and 2020, 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.
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 Kuan-Ying Kuo and Szu-
Chuan Chien.
4-3
KPMG
Taipei, Taiwan (Republic of China)
March 15, 2022
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, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars)
Assets
Current assets:
December 31, 2021
December 31, 2020
Amount
%
Amount
%
Cash and cash equivalents (note (6)(a))
$
75,162,103
14.0
89,126,923
19.1
Current financial assets at fair value through profit or loss (note (6)(b))
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:
400,754
0.1
2,245,254
0.5
288,436,522
53.7
231,830,964
49.7
1,729,332
2,445,690
0.3
0.5
378,934
1,628,657
0.1
0.3
115,012,365
21.4
96,151,959
20.6
3,928,624
0.7
3,097,944
0.6
487,115,390
90.7
424,460,635
90.9
Investments accounted for using equity method (note (6)(g))
8,369,312
1.6
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 (note (8)(h))
Deferred tax assets (note(6)(s))
Other non-current assets (note (8))
259,778
6,235,063
26,990,364
3,066,218
1,548,508
1,646,524
1,864,183
49,979,950
-
1.2
5.0
0.6
0.3
0.3
0.3
9.3
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
1100
1110
1170
1180
1200
1310
1470
1550
1510
1517
1600
1755
1780
1840
1990
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
Bonds payable, current portion (note (6)(o))
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)):
Ordinary share
Capital surplus
Retained earnings
Other equity interest
Treasury shares
2100
2120
2125
2130
2170
2180
2200
2230
2250
2280
2300
2365
2321
2322
2530
2540
2570
2580
2640
2670
3110
3200
3300
3400
3500
Total assets
$
537,095,340 100.0
466,925,698 100.0
36XX Non-controlling interests
Total equity
Total liabilities and equity
See accompanying notes to consolidated financial statements.
5
December 31, 2021
December 31, 2020
Amount
%
Amount
%
$
118,422,407
22.0
92,838,733
19.9
1,589
-
-
-
136,617
2,192
-
-
1,065,954
0.2
820,016
0.2
220,549,039
41.1
196,837,439
42.2
3,517,324
29,701,088
7,013,976
1,204,115
625,292
2,037,822
2,035,437
326,571
15,741,481
0.7
5.5
1.3
0.2
0.1
0.4
0.4
0.1
2.9
2,888,624
23,397,683
5,378,651
870,050
377,161
1,470,466
1,574,469
-
0.6
5.0
1.2
0.2
0.1
0.3
0.3
-
8,932,615
1.9
402,242,095
74.9
335,524,716
71.9
-
9,219,032
1,226,805
1,679,504
822,033
366,068
13,313,442
-
1.7
0.2
0.3
0.2
0.1
2.5
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
415,555,537
77.4
350,936,048
75.2
44,071,466
6,724,856
8.2
1.2
44,071,466
8,342,813
9.4
1.8
69,651,940
13.0
62,566,181
13.4
(8,206,750)
(1.5)
(7,266,708)
(1.6)
(881,247)
(0.2)
(881,247)
(0.2)
111,360,265
20.7
106,832,505
22.8
10,179,538
1.9
9,157,145
2.0
121,539,803
22.6
115,989,650
24.8
$
537,095,340 100.0
466,925,698 100.0
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)
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)(k), (6)(y) and (6)(aa))
Finance costs (notes (6)(o) and (6)(p))
Other income (note (6)(y))
Miscellaneous disbursements
Impairment loss (note (6)(k))
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:
6
2021
2020
Amount
%
Amount
%
$1,235,682,015 100.0 1,048,929,251 100.0
1,194,190,441
96.6 1,013,470,729
96.6
41,491,574
3.4
35,458,522
3.4
7,088,418
4,562,706
16,491,857
28,142,981
13,348,593
2,017,314
2,511,423
0.6
0.4
1.3
2.3
1.1
0.2
0.2
4,604,361
4,198,621
15,162,995
23,965,977
11,492,545
1,636,257
261,043
0.4
0.4
1.5
2.3
1.1
0.2
-
(1,049,137)
(0.1)
(1,149,215)
(0.1)
493,920
0.1
648,106
(52,513)
(404,513)
448,562
4,119,242
17,467,835
3,727,347
13,740,488
-
-
-
-
0.3
1.4
0.3
1.1
(47,491)
-
435,657
1,630,171
13,122,716
2,713,204
10,409,512
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
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss (note (6)(s))
(56,056)
-
630,396
0.1
135,751
50,190
-
-
(65,862)
(78,590)
(54,128)
2,632
Components of other comprehensive income that will not be reclassified to profit or loss
659,901
0.1
(201,212)
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
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
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))
Basic earnings per share
Diluted earnings per share
(1,892,168)
(0.2)
(3,323,038)
(0.3)
2,192
(25,372)
(17,539)
-
-
-
2,679
161,498
(18,727)
-
-
-
(1,897,809)
(1,237,908)
12,502,580
(0.2)
(0.1)
1.0
(3,140,134)
(3,341,346)
7,068,166
(0.3)
(0.3)
0.7
12,632,667
1,107,821
13,740,488
11,445,530
1,057,050
12,502,580
1.0
0.1
1.1
0.9
0.1
1.0
2.90
2.86
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
1.3
0.3
1.0
-
-
-
-
-
4000
5000
6100
6200
6300
7100
7210
7050
7190
7590
7670
7770
7900
7950
8300
8310
8311
8316
8320
8349
8360
8361
8368
8370
8399
8300
8500
8610
8620
8710
8720
9750
9850
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars)
Equity attributable to owners of parent
7
Balance at January 1, 2020
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
Changes in non-controlling interests
Balance at December 31, 2020
Profit for the year ended December 31, 2021
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
Changes in non-controlling interests
Balance at December 31, 2021
Ordinary
shares
$ 44,071,466
-
-
-
Capital
surplus
9,159,259
-
-
-
Legal
reserve
19,719,150
-
-
-
Special
reserve
7,467,831
-
-
-
695,590
-
-
-
-
-
-
-
-
-
-
-
44,071,466
-
-
-
-
-
-
-
-
-
-
-
-
-
$ 44,071,466
-
-
-
(881,429)
1,735
2,228
60,021
999
-
-
8,342,813
-
-
-
-
-
-
(1,762,859)
61,825
2,132
80,027
918
-
-
6,724,856
-
-
-
-
-
-
-
-
-
20,414,740
-
-
-
924,672
-
-
-
-
-
-
-
-
-
21,339,412
(3,366,088)
-
-
-
-
-
-
-
-
4,101,743
-
-
-
-
3,164,965
-
-
-
-
-
-
-
-
Retained earnings
Unappropriated
retained
earnings
30,539,623
9,361,893
(48,219)
9,313,674
(695,590)
3,366,088
(4,407,147)
(33,051)
Total
retained
earnings
57,726,604
9,361,893
(48,219)
9,313,674
-
-
(4,407,147)
-
(33,051)
(9,055)
(9,055)
-
-
-
-
-
-
-
(24,844)
38,049,698
12,632,667
(40,067)
12,592,600
(924,672)
(3,164,965)
(5,288,576)
(25,946)
-
-
(24,844)
-
62,566,181
12,632,667
(40,067)
12,592,600
-
-
(5,288,576)
-
(25,946)
-
-
(142,441)
-
69,651,940
(49,878)
(49,878)
(142,441)
-
7,266,708
41,045,820
See accompanying notes to consolidated financial statements.
Total other equity interest
Unrealized
gains
(losses) on
financial assets
measured at
fair value
through other
comprehensive
income
Others
Total other
equity
interest
Treasury
shares
Total equity
attributable
to owners of
parent
(306,763)
-
(137,062)
(137,062)
-
-
-
-
-
-
33,051
8,978
24,844
-
(376,952)
-
707,754
707,754
-
-
-
-
-
-
14,709
49,878
142,441
-
537,830
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(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)
904
904
-
(1,147,070)
(1,147,070)
(881,247) 106,832,505
12,632,667
(1,187,137)
11,445,530
-
-
-
-
-
-
-
14,709
49,878
-
-
142,441
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,288,576)
(1,762,859)
50,588
2,132
80,027
918
-
-
125
(8,206,750)
(881,247) 111,360,265
Exchange
differences on
translation of
foreign
financial
statements
(3,794,980)
-
(3,093,997)
(3,093,997)
-
-
-
-
-
-
-
-
-
-
(6,888,977)
-
(1,855,728)
(1,855,728)
-
-
-
-
-
-
-
-
-
-
(8,744,705)
Non-
controlling
interests Total equity
114,759,344
10,409,512
(3,341,346)
7,068,166
8,786,711
1,047,619
(62,995)
984,624
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
1,735
2,151
60,021
999
-
(614,190)
9,157,145
1,107,821
(50,771)
1,057,050
(614,190)
115,989,650
13,740,488
(1,237,908)
12,502,580
-
-
-
-
-
-
-
-
-
-
(5,288,576)
(1,762,859)
50,588
2,132
80,027
918
-
(34,657)
10,179,538
-
(34,657)
121,539,803
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2021 and 2020
(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, and right-of-use assets
Gain on disposal of investments
Impairment loss
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:
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 acquisition of subsidiaries
Proceeds from liquidation of investments
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment and right-of-use assets
Acquisition of intangible assets
Acquisition of right-of-use assets
Decrease in restricted 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
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
2021
2020
$
17,467,835
13,122,716
6,903,111
(17,646)
(3,170)
1,049,137
(2,017,314)
(143,686)
33,407
(448,562)
(1,969,560)
-
404,513
706
3,790,936
1,844,499
(57,806,973)
(746,025)
(18,649,166)
(434,580)
(251,890)
(76,044,135)
(135,028)
24,215,948
5,961,832
460,968
334,065
245,938
567,356
45,798
31,696,877
(44,347,258)
(40,556,322)
(23,088,487)
1,975,718
302,344
(1,033,955)
(1,990,003)
(23,834,383)
(859,403)
(17,189)
-
-
(197,002)
17,472
(11,737,557)
3,801,301
(960,300)
-
(936,497)
(173,940)
(11,063,115)
25,424,931
50,106,091
(44,479,931)
(835,037)
(6,971,407)
(692,982)
26,093
22,577,758
(1,645,080)
(13,964,820)
89,126,923
75,162,103
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
$
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(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 15, 2022.
(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. 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, 2021:
● 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”
● Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(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, 2022, would not have a significant impact on its consolidated financial
statements:
● 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”
(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”
Effective date per
IASB
January 1, 2023
Content of amendment
to
aim
amendments
liabilities with
The
promote
consistency in applying the requirements
by helping companies determine whether,
in the statement of balance sheet, debt and
other
uncertain
settlement date should be classified as
current (due or potentially due to be settled
within one year) or non-current. The
amendments
the
include
for debt a
requirements
classification
company might settle by converting it into
equity.
clarifying
an
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 1 “Disclosure of Accounting Policies”
● Amendments to IAS 8 “Definition of Accounting Estimates”
● Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single
Transaction”
(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 financial statements.
(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).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
11
(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)
3)
4)
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;
Hedging financial instruments 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)(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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
12
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
〃
〃
〃
The Company,
Panpal, et al.
Gempal Technology Corp.
(“Gempal”)
Hong Ji Capital Co., Ltd.
(“Hong Ji”)
Hong Jin Investment Co.,
Ltd. (“Hong Jin”)
Arcadyan Technology
Corp. (“Arcadyan”)
The Company
Rayonnant Technology
〃
〃
〃
〃
〃
〃
Co., Ltd. (“Rayonnant
Technology”)
HengHao Technology Co.,
Ltd. (“HengHao”)
Ripal Optoelectronics Co.,
Ltd. (“Ripal”)
Mactech Co., Ltd
(“Mactech”)
General Life Biotechnology
Co., Ltd. (“GLB”)
Unicore BioMedical Co.,
Ltd. (“Unicore”)
Hippo Screen Neurotech
Co., Ltd. (“Hippo
Screen”)
〃
〃
〃
R&D, manufacturing and sales of
wireless network, integrated household
electronics, and mobile office products
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
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
Percentage of
ownership
December
31, 2021
100%
December
31, 2020
Description
100% Panpal held 31,648
thousand shares of the
Company as of December
31, 2021, which represented
0.7% of the Company’s
outstanding shares.
100% Gempal held 18,369
thousand shares of the
Company as of December
31, 2021, which represented
0.4% of the Company’s
outstanding shares.
100%
100%
35% The Group had the ability to
control Arcadyan. (Note 1)
100%
100%
100%
34%
100%
100%
100%
100%
100%
100%
53%
53%
50%
50%
100%
100%
91%
70%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
13
Name of
investor
The Company
Name of Subsidiary
Shennona Taiwan Co., Ltd.
(“Shennona TW”)
〃
〃
〃
〃
〃
〃
〃
〃
〃
Aco Smartcare Co., Ltd.
(“Aco Smartcare”)
Kinpo&Compal Group
Assets Development
Corporation(“Kinpo&C
ompal Group”)
Shennona Corporation
(“Shennona”)
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”)
Nature of Operation
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
Real estate development leasing and
related management business
Medical care IOT business
R&D of notebook PC related products
and components
Investment
〃
〃
Warranty services and marketing of
monitors and notebook PCs
Investment
High Shine Industrial Corp.
〃
The Company
and BSH
The Company
〃
〃
〃
〃
〃
Panpal and
Gempal
〃
(“HSI”)
Compal Europe (Poland)
Sp. z o.o. (“CEP”)
Big Chance International
Co., Ltd. (“BCI”)
Compal Rayonnant
Holdings Limited
(“CRH”)
Core Profit Holdings
Limited (“CORE”)
Compalead Electronics
B.V. (“CPE”)
CGS Technology (Poland)
Sp. z o.o. (“CGSP”)
Compalead Eletronica do
Brasil Industria e
Comercio Ltda.
(“CEB”)
Compal Electronics India
Private Limited
(“CEIN”)
Maintenance and warranty services of
notebook PCs
Investment
〃
〃
〃
Maintenance and warranty services of
notebook PCs
Manufacturing of notebook PCs
Percentage of
ownership
December
31, 2021
December
31, 2020
100%
100%
52%
52%
Description
70%
-
Kinpo&Compal Group was
established in December
2021.
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Manufacturing and warranty service of
mobile phones
100%
100%
Panpal and CEB Compal Electronica DA
Manufacturing of notebook PCs
Just
〃
〃
Amazonia Ltda. (“CEA”)
Compal Display Holding
Investment
(HK) Limited
(“CDH (HK)”)
Compal Electronics
International Ltd.
(“CII”)
Compal International Ltd.
(“CPI”)
〃
〃
100%
100%
100%
100%
100%
100%
100%
100%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
14
Name of
investor
CDH (HK)
〃
〃
Name of Subsidiary
Nature of Operation
Percentage of
ownership
December
31, 2021
December
31, 2020
Description
Compal Electronics
(China) Co., Ltd.
(“CPC”)
Compal Optoelectronics
(Kunshan) Co., Ltd.
(“CPO”)
Compal System Trading
(Kunshan) Co., Ltd.
(“CST”)
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%
CPC
Compal Smart Device
(Chongqing) Co., Ltd.
(“CSD”)
CII
Smart International
Research, manufacturing and sales of
communication devices, mobile phones,
electronic computer, smart watch, and
providing related technical service
Investment
Trading Ltd. (“Smart”)
Amexcom Electronics Inc.
(“AEI”)
Sales and maintenance of LCD TVs
Mexcom Electronics, LLC
Investment
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
〃
〃
〃
〃
〃
Manufacturing of notebook PCs
〃
〃
〃
Manufacturing and sales of notebook
PCs, mobile phones, and digital products
Maintenance and warranty service of
notebook PCs
Investment
〃
〃
〃
CIH
〃
〃
〃
CIH (HK)
〃
〃
〃
〃
BT
CDH (HK)
and CIH (HK)
CIJ
(“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”)
Compal Electronics
Technology (Kunshan)
Co., Ltd. (“CET”)
Compal Information
(Kunshan) Co., Ltd.
(“CIC”)
Coompal Information
Technology (Kunshan)
Co., Ltd. (“CIT”)
Kunshan Botai Electronics
Co., Ltd. (“BT”)
Compal Digital
Technology (Kunshan)
Co., Ltd. (“CDT”)
Compower Global Service
Co., Ltd. (“CGS”)
Compal Investment
(Jiangsu) Co., Ltd.
(“CIJ”)
Compal Display
Electronics (Kunshan)
Co., Ltd. (“CDE”)
Etrade Management Co.,
The Company
and Webtek
The Company Webtek Technology Co.,
Ltd. (“Etrade”)
〃
〃
Ltd. (“Webtek”)
Forever Young Technology
Inc. (“Forever”)
UniCom Global, Inc.
(“UCGI”)
Manufacturing and sales of LCD TVs
100%
100%
Investment
〃
〃
Manufacturing and sales of computers
and electronic components
100%
100%
100%
100%
100%
100%
100%
100%
(Continued)
15
Description
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Name of
investor
The Company
CDH (HK) and
Etrade
Name of Subsidiary
Palcom International
Corporation (“Palcom”)
Compal Communication
(Nanjing) Co., Ltd.
(“CCI Nanjing”)
Etrade
Compal Digital
〃
Forever
〃
〃
Communication
(Nanjing) Co., Ltd.
(“CDCN”)
Compal Wireless
Communication
(Nanjing) Co., Ltd.
(“CWCN”)
Hanhelt Communication
(Nanjing) Co., Ltd.
(“Hanhelt”)
Giant Rank Trading Ltd.
(“GIA”)
Compal Wise Electronic
(Vietnam) Co., Ltd.
(“CWV”)
Arcadyan
Arcadyan Technology N.A.
〃
〃
〃
〃
〃
〃
〃
〃
〃
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”)
Zhi-Bao Technology Inc.
(“Zhi-Bao”)
Tatung Technology Inc.
(“TTI”)
AcBel Telecom Inc.
(“AcBel Telecom”)
Nature of Operation
Sales of mobile phones
Manufacturing and processing of mobile
phones and tablet PCs
〃
〃
Percentage of
ownership
December
31, 2021
December
31, 2020
100%
100%
100%
100%
100%
100%
100%
100%
R&D and manufacturing of electronic
communication equipment
100%
100%
Sales of mobile phones
Manufacturing and sales of mobile
phones, tablet PCs, smart watches,
communication devices, other electronic
devices and providing related technical
service.
Sales of wireless network products
100%
100%
100%
100%
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%
100%
Investment
100%
100%
R&D and sales of household digital
electronic products
Investment
Arcadyan and
Zhi-Bao
〃
Arcadyan do Brasil Ltda.
(“Arcadyan Brasil”)
Arcadyan India Private
Limited (“Arcadyan India”)
Sales of wireless network products
Sales of wireless network products
61%
51%
100%
100%
61%
51% The company had decided
its dissolution and
liquidation on October 28,
2021.
100%
-
The subsidiary was
incorporated on March 25,
2021.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
16
Name of
investor
The Company,
Arcadyan and its
subsidiaries
CBN
Name of Subsidiary
Compal Broadband
Network Inc. (“CBN”)
Compal Broadband
Networks Belgium
BVBA (“CBNB”)
Nature of Operation
R&D and sales of cable modem, digital
set-up box, and other communication
products
Import and export business, technical
support and consulting service of
broadband networks
Percentage of
ownership
December
31, 2021
December
31, 2020
62%
64%
100%
100%
Description
〃
Compal Broadband
〃
100%
100%
Networks Netherlands
B.V. (“CBNN”)
The Company
and CBN
Starmems Semiconductor
Corp. (“Starmems”)
〃
〃
Arcadyan
Holding
Sinoprime Global Inc.
(“Sinoprime”)
Arcadyan Technology
(Shanghai) Corp. (“SVA
Arcadyan”)
Arch Holding (BVI) Corp.
(“Arch Holding”)
Arch Holding Compal Networking
(Kunshan) Co., Ltd.
(“CNC”)
Arcadyan Technology
(Vietnam) Co., Ltd.
(“Arcadyan Vietnam”)
Quest International Group
Co., Ltd. (“Quest”)
Tatung Technology of
Japan Co., Ltd.
(“TTJC”)
Sinoprime
TTI
〃
Quest
Exquisite
HSI
〃
IUE
Goal
Rayonnant
Technology and
CRH
APH
〃
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)”)
R&D of MEMS technology of
manufacturing process of semiconductor
and manufacturing of electronic
components
Investment
R&D and sales of wireless network
products
Investment
Manufacturing of wireless network
products
Manufacturing of wireless network
products
Investment
Sales of household digital electronic
products
Investment
Manufacturing of household digital
electronic products
Investment
〃
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
Investment
〃
〃
45%
-
The subsidiary was
incorporated in April, 2021
and the Group has
substantial control over it.
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
17
Name of
investor
Rayonnant
Technology
(HK)
HengHao
Name of Subsidiary
Rayonnant Technology
(Taicang) Co., Ltd.
(“Rayonnant
Technology (Taicang)”)
HengHao Holdings A Co.,
Ltd. (“HHA”)
Nature of Operation
Manufacturing and sales of aluminum
alloy and magnesium alloy products
Investment
HHA
HengHao Holdings B Co.,
〃
Production of touch panels and related
components
Percentage of
ownership
December
31, 2021
December
31, 2020
100%
100%
Description
100%
100%
100%
100%
100%
100%
Manufacturing of touch panels and LCD
TVs
100%
100%
HHB
〃
BCI
〃
CMI
PRI
CIS
〃
Ltd. (“HHB”)
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”)
Compal Electronics
(Chengdu) Co., Ltd.
(“CEC”)
Compal Management
(Chengdu) Co., Ltd.
(“CMC”)
CORE
BSH
〃
Billion Sea Holdings
Limited (“BSH”)
Mithera Capital Io LP
(“Mithera”)
Compal USA (Indiana),
Inc. (“CIN”)
Investment
〃
Outward investment and consulting
services
R&D, manufacturing and sales of
notebook PCs, related components,
related maintenance and warranty
services
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
〃
OEM of automotive electronic products
GLB
Rapha Bio Ltd. (“RBL”) Detector and feature
Unicore
Raycore Biotech Co., Ltd.
Animal medication retail and wholesale
(“Raycore”)
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
-
100%
99%
-
The Group acquired 100%
of its shares in September
2021.
100% The liquidation had been
completed in July 2021.
51% Raycore was merged with
Unicore in February, 2022.
Unicore was the surviving
company and Raycore was
the dissolved company.
Note 1: The Group holds less than half of the voting rights of the company, but the Group considers that the rest of the company's
shareholding is extremely dispersed. The previous procedures for the participation of other shareholders in the shareholders'
meeting show that the Group has the actual ability to unilaterally dominate the relevant activities, and there is no indication that
there is an agreement among the other shareholders to make collective decisions, so the Group treats the company as a subsidiary.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
18
(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
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
19
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
20
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
21
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
22
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 months 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.
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;
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
23
•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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
24
(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, and trade 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 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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
25
(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 nonderivative 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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
26
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
27
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
28
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.
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
29
The estimated useful lives for the current and comparative years of significant items of
property, plant and equipment are as follows:
1)
2)
Buildings: 9~50 years
Building improvement: 2~30 years
3) Machinery and equipment: 2~14 years
4)
Research equipment: 3~10 years
5) Modeling equipment: 0.5~5 years
6)
Other equipment: 0.25~10 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.
(l)
Leases
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.
(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.
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;
－ variable lease payments that depend on an index or a rate, initially measured using the
index or rate as at the commencement date;
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
30
－ 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 of its assessment on whether it will exercise a purchase, 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 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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
31
(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)
4)
5)
6)
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.
How the intangible asset will generate probable future economic benefits.
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 Group are measured at cost, less accumulated
amortization and any accumulated impairment losses.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
32
(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)
2)
3)
4)
Patents: the shorter of contract period and estimated useful lives
Royalty: amortized by contract period
Computer software: 1~7 years
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 and non-current assets classified as held for sale 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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
33
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
34
(q) Recognition of Revenue
(i)
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.
1)
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.
2)
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
35
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
36
(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 awards 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
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
37
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 acquire, 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 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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
38
(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.
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. In addition, information about assumptions
and estimation uncertainties that have a significant risk of resulting in a material adjustment within the
next financial year is as follows:
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
39
(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, 2021
December
31, 2020
$
18,472
18,637
17,073,664
19,537,842
58,069,967
69,560,444
-
10,000
$
75,162,103
89,126,923
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.
(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
December
31, 2021
December
31, 2020
$
-
137,540
399,550
120,897
2,545
660,532
400,754
259,778
660,532
$
$
$
2,234,184
100,190
101,419
-
11,069
2,446,862
2,245,254
201,608
2,446,862
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
40
Financial liabilities held-for-trading:
Derivative instruments not used for hedging
Foreign exchange contracts
Swap contracts
December
31, 2021
December
31, 2020
$
$
-
1,589
1,589
130,865
5,752
136,617
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, 2021
Contract amount
(in thousand)
Currency
Maturity date
Derivative financial assets:
Foreign exchange contracts:
Forward exchange sold
Forward exchange sold
Forward exchange purchased
Swap contracts:
Currency Swap
Derivative financial liabilities:
Foreign exchange contracts:
Forward exchange purchased
Forward exchange sold
Derivative financial assets:
Swap contracts:
EUR 33,000
EUR
1,500
USD 181,700
EUR to USD January 10, 2022 ~ May 09, 2022
EUR to TWD January 5, 2022
USD to BRL
January 5, 2022 ~ June 20, 2022
USD 21,000
USD to TWD February 14~March 14, 2022
USD
EUR
5,000
7,000
USD to CNY January 26, 2022
EUR to USD February 18, 2022 ~ March 4, 2022
Contract amount
(in thousand)
Currency
Maturity date
December 31, 2020
Currency swap
USD 37,000
USD to TWD January 13~February 26, 2021
Derivative financial liabilities:
Foreign exchange contracts:
Forward exchange sold
EUR 49,000
EUR to USD January 13~April 14, 2021
Forward exchange purchased USD 122,300
USD to BRL
January 7~August 26, 2021
Swap contracts:
Currency swap
USD 45,500
USD to TWD March 12~April 29, 2021
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
41
The market risk related to the financial instruments please refer to note (6)(aa).
As of December 31, 2021 and 2020, 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, 2021
December
31, 2020
$
$
3,350,210
695,728
1,879,166
309,959
6,235,063
1,972,849
491,243
2,152,542
200,377
4,817,011
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.
In order to strengthen business cooperation with its related party, Kinpo Electronics, Inc. (“Kinpo”),
the Group acquired 46,197 thousand common stocks of Kinpo from its related party, Jipo Investment
Inc. in May 2021, with a transaction price amounting to $616,864. The transaction has been
completed and the price has been fully paid.
The liquidation procedures of Horizon Ventures Fund I, LP, Kunji Venture Capital Co., Ltd, and
HeDing Venture Capital Co., Ltd, measured at fair value through other comprehensive income by
the Group, had been completed in 2021. Proceed from the liquidation amounted to $1,172, resulting
in a cumulative loss of $157,150, which was reclassified from other comprehensive income to
retained earnings.
During 2020, the Group has sold all of its shareholdings, 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.
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, 2021 and 2020, will be $311,753 and $240,851, respectively. These
analyses are performed on the same basis for the period and assume that all other variables remain
the same.
The Group’s information of market risk please refer to note (6)(aa).
As of December 31, 2021 and 2020, the Group did not provide any financial assets at fair value
through other comprehensive income as collaterals for its loans.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
42
(d)
Financial instruments used for hedging
(i)
Financial instruments used for hedging were as follows:
December
31, 2021
December
31, 2020
Cash flow hedge:
Financial liabilities used for hedging:
Forward exchange contracts
$
-
2,192
(ii) Cash flow hedge
The Group’s strategy is to use forward exchange contracts to hedge its foreign currency
exposure in respect of forecasted future sales.
As of December 31, 2021, the Group did not enter into any hedge contract.
As of December 31, 2020, the amounts related to the items designated as hedge instruments
were as follows:
December 31, 2020
Contract amount
(in thousands)
Currency
Maturity period
Average
strike price
Derivative financial
liabilities used for
hedging
Foreign exchange
contracts:
Forward exchange
sold
EUR 6,000
EUR to USD
April 29~June 29,
2021
1.2192
(iii) For the years ended December 31, 2021 and 2020, the ineffective portion of cash flow hedge
recognized in profits (losses) amounted of $0 and $67, respectively, recorded as “other gains
and losses, net”.
(iv) For the years ended December 31, 2021 and 2020, 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).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
43
(e) Notes and accounts receivable
Notes receivables from operating activities
Accounts receivables – measured at amortized cost
Accounts receivables – fair value through other comprehensive
income
Less: allowance for uncollectible accounts
Notes and accounts receivable
Notes and accounts receivable – related parties
December
31, 2021
December
31, 2020
$
81,244
40,059
261,179,612
197,650,813
32,796,946
294,057,802
38,429,954
236,120,826
(3,891,948)
(3,910,928)
$ 290,165,854
232,209,898
$ 288,436,522
231,830,964
$
1,729,332
378,934
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, 2021
Carrying
amount of notes
and accounts
receivable
$
$
268,016,952
14,524,868
3,795,534
286,337,354
Weighted-
average
ECL rate
0%
0.47%
100%
December 31, 2020
Carrying
amount of notes
and accounts
receivable
$
$
213,584,823
11,779,368
3,817,340
229,181,531
Weighted-
average
ECL rate
0%
0.57%
100%
Credit rating
Level A
Level B
Level C
Credit rating
Level A
Level B
Level C
Lifetime ECLs
-
68,262
3,795,534
3,863,796
Lifetime ECLs
-
66,757
3,817,340
3,884,097
Credit-
impaired
No
No
Yes
Credit-
impaired
No
No
Yes
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
44
(ii) The loss allowance provision of strategically integrated product segment of the Group was
determined as follows:
December 31, 2021
Carrying
amount of notes
and accounts
receivable
$
$
2,142,077
5,042,739
517,585
-
18,047
7,720,448
Weighted-
average
ECL rate
0%
0.10%
1.00%
-
100%
December 31, 2020
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%
Credit rating
Level A
Level B
Level C
Level D
Level E
Credit rating
Level A
Level B
Level C
Level D
Level E
Lifetime ECLs
-
4,913
5,192
-
18,047
28,152
Lifetime ECLs
-
3,814
4,431
-
18,586
26,831
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, 2021
December
31, 2020
$
$
1,338,940
7,679
1,346,619
2,073,442
104,264
2,177,706
The movement in the allowance for notes and accounts receivable was as follows:
Balance at January 1
Impairment losses recognized (reversed)
Effect of changes in exchange rates
Balance at December 31
2021
3,910,928
(18,227)
(753)
3,891,948
$
$
2020
3,928,716
(18,694)
906
3,910,928
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
45
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,
2021 and 2020, 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
15,000 thousand, USD 1,600,000 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, 2021 and 2020, the factored account receivable with no advance
amounting $958 and $42,550, respectively, is accounted for as other receivables.
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, 2021 and 2020, accounts receivable
factored were recovered and derecognized since the conditions of derecognition were met.
As of December 31, 2021 and 2020, the details of the factored accounts receivable but unsettled
were as follows:
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 33,594,209
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 42,597,772
December 31, 2021
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivable
Amount
Collateral
derecognized Interest rate
-
33,593,251
958
-
33,594,209 0.47%~0.86%
December 31, 2020
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivable
Amount
Collateral
derecognized Interest rate
-
42,555,222
42,550
-
42,597,772 0.58%~0.93%
As of December 31, 2021 and 2020, the Group did not provide any aforementioned notes and
accounts receivable as collaterals.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
46
(f)
Inventories
Finished goods
Work in progress
Raw materials
Raw materials in transit
December
31, 2021
22,625,832
$
December
31, 2020
23,237,892
9,683,904
9,630,864
82,224,084
62,694,104
478,545
589,099
$ 115,012,365
96,151,959
(i)
For the years ended December 31, 2021 and 2020, inventory cost recognized as cost of sales
amounted to $1,194,190,441 and $1,013,470,729, respectively.
(ii) The loss due to the write-down of inventories to net realizable value amounted $1,938,800 and
$97,090 for the years ended December 31, 2021 and 2020, respectively.
(iii) As of December 31, 2021 and 2020, the Group did not provide any inventories as collaterals
for its loans.
(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, 2021
December
31, 2020
$
8,453,133
8,036,165
(17,587)
(17,106)
8,435,546
8,019,059
43,020
43,177
(109,254)
(112,311)
$
8,369,312
7,949,925
1)
The fair value of the shares of listed company based on the closing price was as follows:
Allied Circuit Co., Ltd. (“Allied Circuit”)
Avalue Technology Inc. (“Avalue”)
December
31, 2021
December
31, 2020
2,847,809
2,075,813
849,180
828,286
3,696,989
2,904,099
$
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
47
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
$
448,467
2021
2020
436,165
3)
The Group’s financial information for investments accounted for using the equity method
that are individually immaterial was as follows:
December
31, 2021
December
31, 2020
Carrying amount of individually immaterial associates
$
8,453,133
8,036,165
The Group’s share of the net income (loss) of associates:
Profit (loss) from continuing operations
Other comprehensive income
Total comprehensive income
2021
2020
$
$
448,467
110,379
558,846
436,165
107,370
543,535
4)
For the year ended December 31, 2020, the Group had sold parts of its shares held in
Allied Circuit and Avalue, 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.
(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, 2021
December
31, 2020
The carrying amount of the Group’s interests in all
individually insignificant joint ventures
$
(17,587)
(17,106)
The Group’s share of the net income (loss) of joint ventures:
Losses from continuing operations (also the total
comprehensive losses)
$
95
(508)
2021
2020
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
48
(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.
(iv) As of December 31, 2021 and 2020, the Group did not provide any investments accounted for
using equity method as collaterals for its loans.
(h) Acquisition of the subsidiary
In order to expand the automotive electronics business and build an automotive electronics
production base in the US, the Group’s indirect investee, Billion Sea Holdings Ltd., acquired a 100%
ownership of Cal-Comp USA (Indiana), Inc. from the Group's related party － Cal-Comp Electronics
(USA) Co., Ltd. (“ CCUS” ). Cal-Comp USA (Indiana), Inc. was renamed to be Compal USA
(Indiana), Inc. (“CIN”) after acquisition. The company signed a contract with CCUS on September
30, 2021, to acquire 100% of the equity at a total price of $226,421. The aforementioned price was
paid, and the delivery of shares had been completed.
Since the acquisition of 100% equity of CIN on September 30, 2021, the revenue and net profit
contributed by CIN were $139,834 and loss of $35,101, respectively. If the transaction takes place
on January 1, 2021, the management estimates that the Group's revenue in 2021 would increase by
$490,751, while net profit would decrease by $8,992.
In determining these amounts, management has assumed that the transaction occurred on January 1,
2021 and that the provisional fair value adjustment resulting from the acquisition date is the same.
The main categories of consideration transfer, assets acquired and liabilities on the acquisition date
and the amount of recognized goodwill are as follows:
(i)
Consideration transferred
Cash
$
226,421
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
49
(ii) The identifiable assets acquired and the liabilities assumed
The fair value details of the identifiable assets acquired and the liabilities assumed on the
acquisition date are as follows:
Cash and cash equivalents
Notes and accounts receivable, net
Other receivables
Inventories, net
Prepayments and other current assets
Property, plant and equipment
Short-term borrowings
Accounts payable
Other payables
(iii) Goodwill arising from the acquisition of 100% equity is as follows:
Consideration transferred
Less: fair value of identifiable net assets
$
$
$
$
29,419
130,003
29,994
211,240
3,798
93,373
(158,743)
(124,352)
(27,525)
187,207
226,421
(187,207)
39,214
Goodwill is mainly derived from the business value of CIN in the automotive electronics
market. It is expected that CIN and the Group’s business will be integrated to generate synergy.
(i)
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 38 thousand and 45 thousand new shares because of its employees' exercised
stock options in 2021 and 2020, respectively, which resulted in the reduce of the Group’s
ownership of CBN by 0.02% and 0.03%, respectively.
2)
Issuance of new shares for cash of subsidiaries
The Group purchased newly issued shares of HippoScreen about $70,000, resulting in an
increase in the ownership of the Group in HippoScreen by 21%.
3)
Issuance of subsidiaries’ restricted shares
CBN issued 1,500 thousand restricted shares in the year ended December 31, 2021,
resulting in a decrease in the ownership of the Group in CBN by 0.95%.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
50
4)
Cancellation of subsidiaries’ restricted shares and conversion of convertible bonds
Arcadyan canceled 53 thousand and 126 thousand restricted shares in the years ended
December 31, 2021 and 2020. Whereas, Arcadyan issued $8,136 new shares due to the
conversion of convertible bonds during 2021. These two events, respectively, resulted in
a decrease of 1.30% and an increase of 0.01% the ownership of the Company and its
subsidiaries in Arcadyan in the years ended December 31, 2021 and 2020.
5)
The acquisition of additional equity in the subsidiary
In August 2021, the Group acquired 49% of equity interest in Raycore Biotech from
minority shareholders with $15,129 in cash, increasing equity from 51% to 100%.
6)
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
Retained earnings
2021
2020
$
$
61,825
(11,237)
50,588
1,735
-
1,735
(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, 2020
31, 2021
%66
%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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
51
Arcadyan’s collective financial information
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
Effect of exchange rate changes on cash and cash equivalents
December
31, 2021
28,532,932
$
December
31, 2020
24,721,922
$
$
$
$
$
$
$
$
5,368,181
4,085,304
(20,476,963)
(15,368,928)
(501,037)
(1,476,302)
12,923,113
11,961,996
8,796,235
8,024,032
2021
2020
38,240,058
33,765,295
1,701,800
1,630,605
(77,222)
(97,919)
1,624,578
1,083,011
1,032,457
1,532,686
1,033,182
970,772
(1,524,264)
3,352,208
(1,789,637)
2,240,204
(35,292)
(884,623)
(974,048)
(21,328)
Net increase (decrease) in cash and cash equivalents
$
(1,108,989)
1,472,209
(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, 2021 and 2020, were as follows:
Buildings
and building
improvement Machinery
Other
equipment
Land
Under
construction
and
prepayment
for purchase of
equipment
Total
Cost:
Balance on January 1, 2021
$
1,944,094
18,519,873
28,498,191
11,885,697
1,220,785
62,068,640
Acquisition through business combination
10,892
87,477
162,654
4,376
-
265,399
Additions
479,377
693,335
3,164,422
1,598,322
6,125,821
12,061,277
Disposals and derecognitions
-
(1,893,781)
(915,011)
(1,142,655)
-
(3,951,447)
Reclassifications
43,694
378,343
2,011,033
229,103
(2,662,173)
-
Effect of movements in exchange rates
(1,138)
(401,448)
(915,221)
(831,423)
(90,951)
(2,240,181)
Balance on December 31, 2021
$
2,476,919
17,383,799
32,006,068
11,743,420
4,593,482
68,203,688
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
52
Buildings
and building
improvement Machinery
27,044,641
16,966,779
Other
equipment
11,289,433
Land
1,705,220
$
Under
construction
and
prepayment
for purchase of
equipment
1,310,558
Total
58,316,631
16,540
1,555,668
2,043,593
1,670,528
2,491,792
7,778,121
Balance on January 1, 2020
Additions
Disposals and derecognitions
-
(40,637)
(781,081)
(484,944)
-
(1,306,662)
Reclassifications
222,769
568,695
1,419,898
267,958
(2,479,320)
-
Effect of movements in exchange rates
(435)
(530,632)
(1,228,860)
(857,278)
(102,245)
(2,719,450)
Balance on December 31, 2020
$
1,944,094
18,519,873
28,498,191
11,885,697
1,220,785
62,068,640
Depreciation and impairments loss:
Balance on January 1, 2021
Acquisition through business combination
Depreciation for the period
Impairment loss
Disposals and derecognitions
Effect of movements in exchange rates
Balance on December 31, 2021
Balance on January 1, 2020
Depreciation for the period
Disposals and derecognitions
Effect of movements in exchange rates
Balance on December 31, 2020
Carrying amounts:
Balance on December 31, 2021
Balance on January 1, 2020
Balance on December 31, 2020
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
10,855,109
20,571,645
8,556,546
18,824
148,912
4,290
923,523
2,566,033
1,947,870
-
378,072
26,441
(622,536)
(812,833)
(1,009,328)
(185,398)
(1,597,679)
(556,167)
10,989,522
21,254,150
8,969,652
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
-
-
-
-
-
-
-
-
-
-
-
-
39,983,300
172,026
5,437,426
404,513
(2,444,697)
(2,339,244)
41,213,324
38,344,284
4,844,691
(1,158,107)
(2,047,568)
39,983,300
2,476,919
6,394,277
10,751,918
2,773,768
4,593,482
26,990,364
1,705,220
6,614,345
7,194,382
3,147,842
1,310,558
19,972,347
1,944,094
7,664,764
7,926,546
3,329,151
1,220,785
22,085,340
As of December 31, 2021 and 2020, part of the Group’ s property, plant and equipment were
provided as collateral for long-term borrowings. Please refer to note (8).
In order to activate the assets of the Group, the Board of Directors approved a resolution on May 7,
2021, that the subsidiary CDE and Kunshan Xincheng Construction Development Co., Ltd., a non-
related party, signed a real estate purchase and sale contract. The transaction targets include land use
rights and existing land building, with the transaction price of $4,147,946 (CNY $956,012 thousand)
in total. The Group has completed the above transaction. The Group recognized a disposal gain of
$1,961,419, which was accounted for as other gains and losses, after deducting the book value of
assets and related transaction costs from the transaction price.
In 2021, the Group carried out the impairment test toward the partial production lines in Henghao
and its subsidiaries, and assessed that the recoverable amount of the machinery and equipment was
lower than its book value. The impairment loss of $404,513 was recognized, and accounted for non-
operating income and expenses.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
53
(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:
Cost:
Balance on January 1, 2021
Additions
Deductions
Effect of movements in exchange rates
Balance on December 31, 2021
Balance on January 1, 2020
Additions
Deductions
Effect of movements in exchange rates
Balance on December 31, 2020
Depreciation and impairment loss:
Balance on January 1, 2021
Depreciation for the period
Deductions
Effect of movements in exchange rates
Balance on December 31, 2021
Balance on January 1, 2020
Depreciation for the period
Deductions
Effect of movements in exchange rates
Balance on December 31, 2020
Carrying amount:
Balance on December 31, 2021
Balance on January 1, 2020
Balance on December 31, 2020
Land
Buildings Machinery
Vehicles
and Other
Total
$
$
$
$
$
$
$
$
$
$
$
1,268,129
-
(362,689)
(45,447)
859,993
1,110,813
317,808
(106,518)
(53,974)
1,268,129
54,756
52,675
(37,698)
(78)
69,655
31,587
25,354
-
(2,185)
54,756
3,378,467
996,820
(679,921)
(31,336)
3,664,030
2,809,991
954,736
(350,896)
(35,364)
3,378,467
1,175,689
805,895
(512,348)
(10,411)
1,458,825
659,467
801,567
(258,054)
(27,291)
1,175,689
790,338
1,079,226
1,213,373
2,205,205
2,150,524
2,202,778
76,930
-
-
(328)
76,602
86,661
-
(9,460)
(271)
76,930
24,749
12,326
-
(175)
36,900
22,270
12,138
(9,368)
(291)
24,749
39,702
64,391
52,181
74,969
22,824
(28,923)
(248)
68,622
88,712
6,797
(19,825)
(715)
74,969
46,349
20,421
(28,923)
(198)
37,649
32,681
32,690
(18,742)
(280)
46,349
4,798,495
1,019,644
(1,071,533)
(77,359)
4,669,247
4,096,177
1,279,341
(486,699)
(90,324)
4,798,495
1,301,543
891,317
(578,969)
(10,862)
1,603,029
746,005
871,749
(286,164)
(30,047)
1,301,543
30,973
56,031
28,620
3,066,218
3,350,172
3,496,952
(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, 2021
$ 118,422,407
December
31, 2020
92,838,733
$ 113,777,000
95,910,000
0.05%~2.95% 0.25%~2.58%
For information on the Group’s interest risk, foreign currency risk and liquidity risk, please refer to
note (6)(aa).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
54
(n) Long-term borrowings
The details of long-term borrowings were as follows:
Unsecured bank loans
December 31, 2021
Currency
TWD
Annual range of
interest rate
0.62%~0.98%
Maturity year
2022~2024
Secured bank loans
TWD
1.00%~1.50%
2022~2026
Less: current portion
Total
Unused credit lines for
long-term borrowings
Unsecured bank loans
Unsecured bank loans
Secured bank loans
Less: current portion
Total
Unused credit lines for
long-term borrowings
December 31, 2020
Currency
TWD
USD
TWD
Annual range of
interest rate
0.66%~0.98%
0.69%~0.92%
1%~1.5%
Maturity year
2021~2023
2021~2022
2022~2025
Amount
24,300,000
660,513
(15,741,481)
9,219,032
12,345,000
Amount
11,900,000
7,205,440
228,913
(8,932,615)
10,401,738
15,327,000
$
$
$
$
$
$
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).
(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
Accumulated converted amount
Balance of bonds payable of the reporting date
Conversion options included in equity components (classified
as capital surplus and non-controlling interests)
$
$
$
December
31, 2021
December
31, 2020
1,000,000
(1,433)
(496)
(671,500)
326,571
1,000,000
(18,527)
(1,254)
-
980,219
15,987
48,667
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
55
Interest expenses
2021
$
11,968
2020
13,727
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)
2)
3)
Coupon rate: 0%
Duration: three years (June 6, 2019~June 6, 2022)
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 day (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;
- 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 in 2021 and 2020, thereafter,
the conversion price has been adjusted to NT82.5 and $87.7 per share, respectively.
(iii) The maturity date of the above convertible corporate bonds is June 6, 2022, so it has been
transferred to current liabilities from June 30, 2021.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
56
(iv) As of December 31, 2021, the convertible corporate bonds were converted into Arcadyan's
ordinary shares with a face value of $671,500 which was converted into Arcadyan's ordinary
shares with a total share capital of $81,363. The resulting capital reserve – issuance stock
premium was $616,933 (including the premium of $32,680 and the unamortized amount of the
discounted corporate bond payables of $5,884).
(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, 2021
$
$
625,292
1,679,504
December
31, 2020
377,161
1,910,601
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
2021
2020
63,701
50,534
32,350
3,332
303,454
131,749
$
$
$
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
2021
1,234,542
$
2020
1,032,451
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, 2021
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Balance on December 31, 2021
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
57
Warranties
870,050
$
$
$
476,940
(136,853)
(6,022)
1,204,115
830,757
181,789
(142,007)
(489)
$
870,050
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, 2021
(1,554,902)
December
31, 2020
(1,516,219)
732,869
730,046
(822,033)
(786,173)
$
$
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
58
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 $739,802 (excluding the ending balance of interest receivable) as of
December 31, 2021. 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
$
(1,516,219)
2021
Benefit paid by the plan
Current service costs and interest
Remeasurements of net benefit liabilities
38,959
(12,850)
(64,792)
2020
(1,486,824)
76,835
(19,238)
(86,992)
Defined benefit obligations on December 31
$
(1,554,902)
(1,516,219)
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:
2021
2020
Fair value of plan assets on January 1
$
730,046
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
$
3,675
9,626
28,481
(38,959)
732,869
748,660
6,675
23,554
27,992
(76,835)
730,046
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
4)
Expenses recognized in profit or loss
The expenses recognized in profit or loss were as follows:
2021
2020
Current service cost
Net interest on the net defined benefit liability
(asset)
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
$
$
$
$
5,198
3,977
9,175
547
576
2,137
5,915
9,175
59
5,955
6,608
12,563
546
679
3,024
8,314
12,563
5)
Actuarial assumptions
The following were the Group’s principal actuarial assumptions at the reporting date:
Discount rate
December 31,
2021
0.63%~0.8%
December 31,
2020
0.50%~0.63%
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 $29,915.
The weighted-average lifetime of the defined benefit plan is 9~13.42 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, 2021
Discount rate
Future salary increasing rate
December 31, 2020
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(34,611)
34,882
(36,336)
36,574
35,847
(33,869)
37,683
(35,482)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
60
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 $446,148 and $448,617 for the years ended December 31,
2021 and 2020, 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 $1,193,098 and $922,151 for the years ended December
31, 2021 and 2020, respectively.
(s)
Income taxes
(i)
Income tax expenses
1)
The amount of income tax for the years ended December 31, 2021 and 2020, was as
follows:
2021
2020
Current tax expense
Recognized during the period
$
4,240,078
5% surtax on unappropriated earnings
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary
differences
14,627
(596,726)
3,657,979
2,837,554
27,073
(273,959)
2,590,668
69,368
69,368
122,536
122,536
Income tax expense
$
3,727,347
2,713,204
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
61
2)
The amount of income tax recognized in other comprehensive income for the years ended
December 31, 2021 and 2020, was as follows:
2021
2020
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
foreign operations
$
$
$
(11,211)
(13,173)
61,401
50,190
15,805
2,632
(17,539)
(18,727)
3)
The income tax expense that was reconciled between the actual income tax expense and
profit before tax for the years ended December 31, 2021 and 2020, was 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
Surtax on unappropriated earnings
2021
17,467,835
4,734,068
$
$
2020
13,122,716
3,260,548
(171,208)
(65,440)
(596,726)
(704,260)
516,286
14,627
(209,192)
(60,000)
(273,959)
(637,794)
606,528
27,073
$
3,727,347
2,713,204
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
62
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2021 and 2020 were as follows:
Refund
liabilities
Contract
liabilities
Unrealized
exchange
losses, net
Others
Total
Deferred tax assets:
Balance on January 1, 2021
$
Recognized in profit or loss
Recognized in other
comprehensive income
Balance on December 31, 2021
Balance on January 1, 2020
Recognized in profit or loss
Recognized in other
$
$
134,880
60,416
-
195,296
120,603
14,277
49,536
40,462
655,455
(178,449)
674,337
181,217
1,514,208
103,646
-
89,998
59,429
(9,893)
-
477,006
750,213
28,670
884,224
707,381
28,670
1,646,524
1,637,626
(94,758)
(64,966)
(155,340)
comprehensive income
-
-
-
Balance on December 31, 2020
$
134,880
49,536
655,455
31,922
674,337
31,922
1,514,208
Deferred tax liabilities:
Balance on January 1, 2021
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2021
Balance on January 1, 2020
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2020
(iii) Unrecognized deferred tax assets
Unrealized
exchange
gains, net
$
$
$
$
(424,990)
(79,673)
-
(504,663)
(497,092)
72,102
-
(424,990)
Others
Total
(567,480)
(93,341)
(61,321)
(722,142)
(512,126)
(39,527)
(15,827)
(567,480)
(992,470)
(173,014)
(61,321)
(1,226,805)
(1,009,218)
32,575
(15,827)
(992,470)
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,
2021
1,028,920
$
December
31, 2020
1,143,771
$
978,257
1,034,072
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
63
As of December 31, 2021, the tax effects on loss carryforward that have not been recognized
as deferred tax assets were as follows:
Year of loss
2012 (Assessed)
2013 (Assessed)
2014 (Assessed)
2015 (Assessed)
2016 (Assessed)
2017 (Assessed)
2018 (Assessed/Filed)
2019 (Assessed/Filed)
2020 (Filed)
2020 (Filed)
2021 (Estimated)
2021 (Filed)
Expiry year
2022
Deductible amount
345,099
$
2023
2024
2025
2026
2027
2028
2029
2030
2025
2031
2026
$
228,258
41,534
636,827
1,423,381
918,085
554,750
377,577
138,962
18,527
48,943
124,353
4,856,296
(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, 2021 and 2020, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $2,335,023 and
$1,856,500, respectively.
As of December 31, 2021 and 2020, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $58,082,760
and $54,151,962, respectively.
(v) Examination and approval
The Company’ s tax returns for the year through 2019 were assessed by the Taipei National
Tax Administration.
The ROC tax authorities have assessed the income tax returns of Hippo Screen, Zhi-Bao,
Acbel Telecom, and Shennona through 2020, of Rayonnant Technology ,UCGI, Palcom,
Panpal, Gempal, Hong Ji, Hong Jin, Unicore, Raycore, Ripal, Arcadyan, Heng Hao, Mactech,
GLB, RBL, Aco Healthcare and CBN through 2019, and of TTI through 2019. However, TTI’s
tax returns through 2018 has not yet been approved.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
64
(t)
Capital and other equities
(i) Ordinary shares
As of December 31, 2021 and 2020, 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, 2021
December
31, 2020
$
3,660,119
5,422,060
2,621,933
2,541,906
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
122,675
36,766
60,850
for using equity method
283,363
281,231
$
6,724,856
8,342,813
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 Board of Directors meeting respectively held on March 26, 2021 and March
30, 2020, approved to distribute cash of $1,762,859 and $881,429 (representing 0.4 and 0.2
New Taiwan Dollars per share), by using capital surplus.
The Company’ s Board of Directors meeting held on March 15, 2022, approved to distribute
cash of $1,762,859 (representing 0.4 New Taiwan Dollars per share), by using the capital
surplus. The related information can be accessed through the Market Observation Post System
website.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
65
(iii) Retained earnings
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.
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.
2)
Special reverse
A portion of current period earnings and undistributed prior period earnings shall be
reclassified as a special earnings reserve during earnings distribution. The amount to be
reclassified should equal to the current period total net reduction of other shareholders’
equity. For the year 2019 earnings distribution in 2020, the amount to be reclassified to
special reserve shall be a portion of current-period earnings and undistributed prior-
period earnings. As for the year 2020 earnings distribution in 2021, the amount to be
reclassified to special reserve shall be a portion of current-period earnings plus other line
items in the retained earnings movements and undistributed prior-period earnings. 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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
66
3)
Earnings distribution
Distribution for the earnings of 2020 and 2019 were approved in the meeting of the
Board of Directors held on March 26, 2021 and March 30, 2020, respectively. The
relevant information was as follows:
2020
2019
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed
to common shareholders $
1.2
5,288,576
1.0
4,407,147
Earnings distribution for 2021 was approved by the Board of Directors held on March
15, 2022. The relevant information was as follows:
2021
Amount
per share
Total
amount
Cash dividends distributed to common shareholders from
the unappropriated earnings
$
1.6
7,051,435
The related information of the earnings distribution for the year ended December 31,
2021, can be accessed through the Market Observation Post System website after the
shareholders’ meeting.
(iv) Treasury stock
The subsidiaries of the Company did not sell the ordinary shares of the Company in the years
ended December 31, 2021 and 2020. As of December 31, 2021, 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
24.20 and 20.70 New Taiwan dollars per share as of December 31, 2021 and 2020,
respectively.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
67
(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
$
$
$
$
(6,888,977)
(1,791,462)
(38,894)
(25,372)
(8,744,705)
(3,794,980)
(3,073,441)
(182,054)
161,498
(6,888,977)
(376,952)
567,871
160,972
185,939
537,830
(306,763)
(100,249)
75,529
(45,469)
(376,952)
Others
Total
(779)
904
125
(1,706)
927
-
-
-
-
(7,266,708)
(1,223,591)
122,982
160,567
(8,206,750)
(4,103,449)
(3,173,690)
(105,598)
116,029
(779)
(7,266,708)
Balance on January 1, 2021
The Group
Subsidiaries
Associates
Balance on December 31, 2021
Balance on January 1, 2020
The Group
Subsidiaries
Associates
Balance on December 31, 2020
(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
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
68
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,
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
The number vested in this period
Outstanding shares on December 31
Unit: in thousands of shares
2021
2020
2,306
(53)
(970)
1,283
4,416
(126)
(1,984)
2,306
As of December 31, 2021 and 2020, the unearned employee benefit was $13,030 and $45,606.
The compensation cost related to the restricted shares amounted to $32,576 and $73,545 for
the year ended December 31, 2021 and 2020.
(ii) TTI – employee stock options
The information about share-based payment of TTI in 2021 and 2020 was as follows:
Grant date
Granted shares (in
thousand)
Contract period
Recipients
Employee stock options
2015.10.29
1,000
7 years
Employees of TTI
Vested condition
Please refer to the issuance terms of the stock options as follows
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
69
The issuance terms of the stock options are as follows:
1)
2)
3)
4)
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
40 ％
30 ％
30 ％
Period and performance requirements to exercise options
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
70
The information on total options issued was as follows:
Outstanding shares on January 1
Canceled during the period
Exercisable shares on December 31
2020
Weighted-
average
exercise price
(NT dollars)
13.5
$
Shares
(in thousands)
300
13.5
(300)
-
-
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
Weighted average remaining contract period
December 31,
2020
13.5
-
The reverse related to the share-based payment amounted to $970 for the years ended
December 31, 2020.
(iii) CBN－employee stock options
At the meeting held on May 17, 2016, CBN’ s Board of Directors resolved to issue 1,500,000
units of employee stock options with an exercisable right of one share of CBN’ s ordinary
shares per unit. The issuance of employee stock options and related information are as follows:
2021
2020
Outstanding shares on January 1
Expired during the period
Exercised during the period
Outstanding shares on December 31
Exercisable shares on December 31
Weighted-
average
exercise price
(NT dollars)
10
Shares
3,000 $
Weighted-
average
exercise price
(NT dollars)
10
Shares
87,800 $
-
(3,000)
-
-
10
-
-
-
(4,500)
(80,300)
3,000
3,000
10
10
10
10
In the year ended December 31, 2020, the weighted-average remaining contractual life of the
outstanding options was 0.67 years. The options under the aforesaid employee stock option
plan have been exercised in 2021.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
71
The issuance terms of the share options are as follows.
1)
2)
3)
4)
Exercise price: NT$10 per share.
Exercisable duration:
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
5 months after options received
Exercisable percentage (cumulative)
100 ％
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, 2021 and 2020 were $0 and $(68),
respectively.
CBN adopted the Black-Scholes model to estimate the fair value on the grant date, and the
assumptions are summarized as follows:
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
Weighted average fair value (NT dollars per share)
(iv) CBN- Issuance of restricted shares
$10
24.62
0％
35.87％
0.56％
2.55 years
14.96
On June 24, 2020, CBN issued 1,500,000 new restricted shares through shareholders' meeting.
This is a gratuitous issuance, and the recipients are full-time employees of CBN who have
been employed on grant day and meet specific terms. It have been approved by the Financial
Supervisory Commission.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
72
In addition, the issuance date has been decided by the chairman of the board of directors to be
December 20, 2021, and the statutory registration procedures had been completed on January
7, 2022.
If the employees who have been on the job for one year, two years and three years ,since the
new restricted shares have been given, achieved the performance required by CBN, the
proportion of shares with acquired conditions can be 40%, 30% and 30%, respectively. After
the issuance of new shares, employees must hand over all of them to the trust agency
designated by the company for safekeeping before they meet the terms. Except for inheritance,
they shall not be sold, mortgaged, transferred, gifted, pledged or disposed of in other ways.
Before the employees meet the terms, all matters concerning shareholders' rights and interests
are entrusted to the trust agency designated by CBN to exercise on their behalf. If any of the
assigned employees does not meet the acquired terms, CBN will take back their shares from
the employees for free and cancel them.
The information of CBN’s restricted shares is as follows:
Outstanding shares on January 1
Shares vested in this period
Outstanding shares on December 31
Unit: in thousands of shares
2021
-
1,500
1,500
The above-mentioned new restricted shares of CBN takes the closing price of $30.70 on the
grant day, December 20, 2021, as the fair value, and capital surplus-employee restricted shares
amounted to $31,050. Until December 31, 2021, the balance of unearned employees benefit
was $45,219.
The compensation cost related to the restricted shares amounted to $831 for the year ended
December 31, 2021.
(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
$
12,632,667
9,361,893
Weighted-average number of outstanding ordinary shares (in
thousands)
4,357,130
4,357,130
2021
2020
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
73
Diluted earnings per share:
Profit attributable to ordinary shareholders of the Company (after
adjustment of potential diluted ordinary shares)
$
12,632,667
9,361,893
2021
2020
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)
4,357,130
4,357,130
65,517
57,482
Weighted-average number of ordinary shares (after adjustment of
potential diluted ordinary shares) (in thousands)
4,422,647
4,414,612
(w) Revenue from contracts with customers
(i) Disaggregation of revenue
Primary geographical markets:
United states
China
Netherlands
Others
Major products:
5C related electronics products
Others
2021
Strategically
Integrated
Product
Segment
Total
8,487,079
431,844
1,435,217
27,885,918
38,240,058
486,362,457
159,061,285
88,162,373
502,095,900
1,235,682,015
IT Product
Segment
$
477,875,378
158,629,441
86,727,156
474,209,982
$ 1,197,441,957
$ 1,195,237,339
2,204,618
$ 1,197,441,957
37,264,055
976,003
38,240,058
1,232,501,394
3,180,621
1,235,682,015
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
74
2020
Strategically
Integrated
Product
Segment
Total
8,106,885
568,651
1,340,450
23,749,309
33,765,295
446,893,526
127,573,036
84,890,214
389,572,475
1,048,929,251
IT Product
Segment
$
438,786,641
127,004,385
83,549,764
365,823,166
$ 1,015,163,956
$ 1,013,091,503
2,072,453
$ 1,015,163,956
33,191,331
573,964
33,765,295
1,046,282,834
2,646,417
1,048,929,251
Primary geographical markets:
United states
China
Netherlands
Others
Major products:
5C related electronics products
Others
(ii) Contract balances
Notes and accounts receivable (including
related parties)
Less: allowance for impairment
Total
Contract liabilities
December
31, 2021
$ 294,057,802
December
31, 2020
236,120,826
January 1,
2020
195,665,380
(3,891,948)
$ 290,165,854
1,065,954
$
(3,910,928)
232,209,898
820,016
(3,928,716)
191,736,664
956,455
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, 2021 and 2020 that were
included in the balance of contract liability at the beginning of the period was $820,016 and
$877,822, 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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
75
The Company accrued and recognized its employee compensation of $1,350,062 and $974,694, and
directors’ compensation of $71,390 and $51,541 for the years ended December 31, 2021 and 2020,
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 differences between the amount approved in the Board of Directors'
meeting and those recognized in the financial statements in 2021 and 2020.
There is no differences between the amount estimated and recognized in the financial statements in
2020. The related information can be accessed through the Market observation Post System website.
(y) Non-operating income and expenses
(i)
Interest income
The details of interest income were as follows:
Interest income from bank deposits
Other interest income
Total Interest income
(ii) Other income
2021
2,015,709
1,605
2020
1,635,953
304
2,017,314
1,636,257
$
$
The other incomes for the years ended December 31, 2021 and 2020, were as follows:
Dividend revenue
Other revenue
2021
2020
$
$
143,686
504,420
648,106
108,996
384,924
493,920
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
76
(iii) Other gains and losses
The other gains and losses for the years ended December 31, 2021 and 2020, were as follows:
Gains on disposal of investments
2021
-
$
2020
29,757
Gains on financial assets and liabilities at fair value through
profit or loss, net
Foreign currency exchange gains (losses), net
418,827
123,742
Gains (losses) on disposal of property, plant, and equipment
1,969,560
279,262
(73,475)
25,499
Others
(706)
-
$
2,511,423
261,043
(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, 2021 and 2020, were as follows:
Cash flow hedge:
Gains (losses) from current period
Less: reclassification of gains (losses) included in profit or loss
Profit (loss) recognized in other comprehensive income
$
$
43,006
40,814
2,192
(12,483)
(15,162)
2,679
2021
2020
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
77
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, 2021. 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, 2021 and 2020 were as
follows:
Balance on January 1, 2021
Impairment losses recognized (reversed)
Balance on December 31, 2021
Balance on January 1, 2020
Impairment losses recognized (reversed)
Balance on December 31, 2020
(ii) Liquidity risk
Other
receivables
2,392
581
2,973
1,012
1,380
2,392
$
$
$
$
The following are the contractual maturities of financial liabilities. In addition to lease
liabilities and bonds payable, excluding estimated interest payments.
Carrying
Amount
Contractual
cash flows Within 1 year
1 ~ 2 years
Over 2 years
December 31, 2021
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
$
660,513
142,722,407
(660,513)
(142,722,407)
(66,481)
(134,097,407)
(127,612)
(6,125,000)
(466,420)
(2,500,000)
2,304,796
224,066,363
29,701,088
326,571
(2,411,332)
(224,066,363)
(29,701,088)
(328,500)
(665,378)
(224,066,363)
(29,701,088)
(328,500)
Forward exchange contracts:
1,589
Outflow
Inflow
(358,893)
357,183
(399,891,913)
(358,893)
357,183
(388,926,927)
$ 399,783,327
(1,331,721)
(414,233)
-
-
-
-
-
-
-
-
-
-
(7,584,333)
(3,380,653)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
78
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
Forward exchange contracts:
Outflow
Inflow
Outflow
Inflow
Forward exchange contracts used
for hedging:
Outflow
Inflow
Carrying
Amount
Contractual
cash flows Within 1 year
1 ~ 2 years
Over 2 years
$
228,913
111,944,173
(228,913)
(111,944,173)
(77,175)
(101,694,173)
(77,175)
(5,125,000)
(74,563)
(5,125,000)
2,287,762
199,726,063
23,397,683
980,219
130,865
(2,401,961)
(199,726,063)
(23,397,683)
(1,000,000)
(486,124)
(199,726,063)
(23,397,683)
-
(5,279,091)
5,143,059
(5,279,091)
5,143,059
(1,295,840)
1,285,715
(1,295,840)
1,285,715
2,192
(209,640)
208,331
(338,846,259)
(209,640)
208,331
(325,528,684)
$ 338,703,622
(562,952)
(1,352,885)
-
-
(1,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,765,127)
(6,552,448)
Currency swap contracts:
5,752
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, 2021
Exchange rate
TWD
Foreign currency
December 31, 2020
Exchange rate
TWD
$
18,449,976
26,386
83,417
3,451,738
842,184
17,976,968
1,170
197,060
27,835
3,269,701
27.68
6.378
31.32
0.1568
0.8261
27.68
6.378
5.5805
31.32
0.1568
510,695,336
730,364
2,612,620
14,981,316
13,926,339
13,381
60,677
3,646,117
695,728
516,989
497,602,474
32,386
5,454,621
871,792
14,191,235
14,056,045
3,132
131,487
12,616
3,149,932
28.48
6.5386
35.02
0.1529
0.9502
28.48
6.5386
5.1967
35.02
0.1529
396,622,135
381,091
2,124,909
15,877,352
491,243
400,316,162
89,199
3,744,750
441,812
13,716,669
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 NTD
CNY to USD
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
79
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, 2021 and 2020,
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%
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,
2021
December 31,
2020
$
654,643
(654,643)
34,899
(34,899)
(272,731)
272,731
87,041
(87,041)
39,504
(39,504)
(184,701)
184,701
14,595
(14,595)
(187,238)
187,238
84,155
(84,155)
108,034
(108,034)
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, 2021 and 2020,
the foreign exchange gains (losses), including both realized and unrealized, amounted to
$123,742 and $(73,475), respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
80
(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, 2021 and 2020, 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
$
2021
2020
1,656
(1,656)
24,312
(24,312)
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, 2021
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 $
Non-derivative financial assets mandatorily
measured at fair value through profit or
loss
Subtotal
123,442
537,090
660,532
-
-
123,442
-
123,442
277,312
259,778
537,090
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
81
December 31, 2021
Fair Value
Book value
Level 1
Level 2
Level 3
Total
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
3,350,210
3,350,210
695,728
695,728
1,879,166
309,959
32,796,946
39,032,009
Cash and cash equivalents
Notes and accounts receivable, net
75,162,103
255,639,576
Notes and accounts receivable due from
related parties, net
Other receivables
Other current assets (restricted assets)
Refundable deposits
Other non-current assets (restricted assets)
Subtotal
Total
1,729,332
2,445,690
433,403
696,393
544,684
336,651,181
$ 376,343,722
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities for non-
hedging
$
1,589
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
118,422,407
220,549,039
3,517,324
29,701,088
326,571
2,304,796
15,741,481
9,219,032
311,325
400,093,063
$ 400,094,652
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,350,210
695,728
1,879,166
1,879,166
309,959
309,959
32,796,946
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,589
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32,796,946
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,589
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
82
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
Derivative financial assets for non-hedging $
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
Cash and cash equivalents
Notes and accounts receivable, net
Notes and accounts receivable due from
related parties, net
Other receivables
Other current assets (restricted assets)
Refundable deposits
Other non-current assets (restricted assets)
Subtotal
Total
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities for non-
hedging
Derivative financial liabilities 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
11,069
2,435,793
2,446,862
1,972,849
491,243
2,152,542
200,377
38,429,954
43,246,965
89,126,923
193,401,010
378,934
1,628,657
41,090
522,213
500
285,099,327
$ 330,793,154
$
136,617
2,192
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
-
-
1,972,849
491,243
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,069
-
11,069
2,234,184
201,609
2,435,793
-
-
-
-
38,429,954
-
-
-
-
-
-
-
136,617
2,192
-
-
-
-
-
-
-
-
-
-
-
2,152,542
200,377
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,972,849
491,243
2,152,542
200,377
38,429,954
-
-
-
-
-
-
-
136,617
2,192
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
83
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 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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
84
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 from one level to another in the years ended December 31, 2021
and 2020.
5) Changes in level 3
The change in level 3 at fair value in the years ended December 31, 2021 and 2020, were
as follows:
Balance on January 1, 2021
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Proceeds from liquidation and capital
reduction of investments
Effect of changes in exchange rates
Balance on December 31, 2021
Balance on January 1, 2020
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds from capital reduction of
investments
Effect of changes in exchange rates
Balance on December 31, 2020
Financial assets at
fair value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Total
$
201,609
2,352,919
2,554,528
$
$
-
-
-
-
-
-
-
3,170
-
54,999
259,778
115,359
(335,469)
187,540
(12,249)
(3,616)
2,189,125
2,424,053
9,575
-
76,675
(34,716)
29,369
(52,105)
(6,933)
(6,749)
2,352,919
$
201,609
3,170
(335,469)
242,539
(12,249)
(3,616)
2,448,903
2,539,412
9,575
(34,716)
106,044
(52,105)
(6,933)
(6,749)
2,554,528
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
85
For the years ended December 31, 2021 and 2020, 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” 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”)
$
$
2021
2020
3,170
9,575
(331,801)
8,834
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, 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)
Significant
unobservable inputs
Price-Book ratio
multiples (1.82~11.62
and 1.72~7.9
,respectively, on
December 31, 2021 and
2020)
Multiples of earnings
(16.37~27.97 and
14.68, respectively, on
December 31, 2021 and
2020)
Lack-of-Marketability
discount rate
(40%~85% and
35%~85%,respectively,
on December 31, 2021
and 2020)
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-Marketability
discount rate is, the
lower the fair value
will be.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
86
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, 2021
Financial assets at fair
value through other
comprehensive
income
December 31, 2020
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
Move up
or down
Other comprehensive income
Unfavorable
change
Favorable
change
5%
5%
5%
5%
5%
5%
$
$
$
$
$
$
17,810
16,250
4,882
11,767
4,738
13,470
36,119
35,448
5,734
3,942
5,801
3,942
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
87
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, 2021
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts
of recognized
financial assets
(a)
360,789,950
$
Gross amounts of
financial liabilities
offset
in the balance
sheet
(b)
360,789,950
Net amount of
financial assets
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)
-
Cash
(USD
13,034,319 )
(USD 13,034,319 )
December 31, 2021
Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of
recognized
financial liabilities
(a)
360,789,950
Gross amounts of
financial assets
offset in the
balance sheet
(b)
360,789,950
(USD 13,034,319 )
(USD 13,034,319 )
Short-term borrowings $
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)
-
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)
199,267,863
$
Gross amounts of
financial liabilities
offset
in the balance
sheet
(b)
199,267,863
Net amount of
financial assets
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)
-
Cash
(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
financial assets
offset in
the balance sheet
(b)
199,267,863
Net amount of
financial
liabilities
presented in
the balance
sheet
(c)=(a)-(b)
-
Gross amounts of
recognized
financial liabilities
(a)
199,267,863
(USD
6,996,765 )
(USD 6,996,765 )
Short-term borrowings $
Amounts not offset in the
balance sheet (d)
Financial
instruments
-
Cash
collateral
received
-
Net amount
(e)=(c)-(d)
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
88
(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.
1) Accounts receivable and other receivables
The Group has established a credit policy under which each new customer is analyzed
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
89
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.
the contractually obligated
Since
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, 2021
and 2020, 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, 2021 and 2020.
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
90
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, 2021 and 2020, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December
31, 2021
$ 415,555,537
December
31, 2020
350,936,048
$ 537,095,340
466,925,698
77%
75%
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, 2021, 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, 2021 and 2020 were acquisition of right-of-use assets by leasing, please refer to
note (6)(l).
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,
2021
$ 92,838,733
Cash flow
25,424,931
Other
non-cash
changes
158,743
December
31, 2021
118,422,407
980,219
-
(653,648)
326,571
19,334,353
5,626,160
-
24,960,513
2,287,762
(835,037)
852,071
2,304,796
Deposits received and others
340,131
26,093
(156)
366,068
Total liabilities from financing activities $ 115,781,198
30,242,147
357,010
146,380,355
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
91
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
Deposits received 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
(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 financial statement.
Name of related party
Relationship with the Group
Compal Precision Module (Jiangsu) Co., Ltd. (“CPM”) An associate
An associate
Changbao Electronic Technology (Chongqing) Co.,
Ltd. (“Changbao”)
Avalue
Crownpo Technology Inc. (“Crownpo”)
Allied Circuit
LIZ Electronics (Kunshan) Co., Ltd.
LIZ Electronics (Nantong) Co., Ltd.
ARCE Therapeutics Co., Ltd. (“ARCE”)
Raypal Biomedical Co., Ltd. (“Raypal”)
Hong Ya Technology Co., Ltd. (“Hong Ya”)
Kinpo Group Management Service Company
(“Kinpo Group Management Service”)
Acbel Polytech Inc. and its subsidiaries (“Acbel”)
Cal-Comp Electronics (USA) Co., Ltd. (“CCUS”)
Cal-Comp Electronics (Thailand) Public Company
Limited (“Cal-Comp”)
Kinpo Electronics, Inc.(“Kinpo”)
Jipo Investment Inc. (“Jipo Investment”)
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
The Chairman of the Board is the first
degree of kinship of the Chairman of the
Company
The same Chairman of the Ultimate parent
company with the Company
The same Chairman of the Board with the
Company
The same Chairman of the Board with the
Company
The same Chairman of the Board with the
Company
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
92
(b) Transactions with key management personnel
Key management personnel remunerations comprised:
Short-term employee benefits
Post-employment benefits
Share-based payments
2021
803,552
2020
724,350
7,854
6,110
8,267
19,033
817,516
751,650
$
$
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 ventures
2021
2020
220,127
34,059
-
240,161
610,517
222
254,186
850,900
$
$
Sales prices for related parties were similar to those of the third-party customers. The
collection period was 60~120 days for related parties.
(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
2021
6,346,763
4,115,321
10,462,084
$
$
2020
4,596,352
2,956,322
7,552,674
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
93
(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
Notes and accounts receivable
Notes and accounts receivable
Other receivables
Other receivables
(iv) Payables to related parties
Related party
categories
December
31, 2021
December
31, 2020
Associates
Other related parties
Associates
Other related parties
$
$
31,640
1,697,692
2,463
45
1,731,840
29,643
349,291
908
64
379,906
The payables arising from the transactions mentioned above and rendering of services from
other related parties were as follows:
Account
Related party
categories
December
31, 2021
December
31, 2020
Notes and accounts payable
Associates
$
1,992,718
1,632,862
Notes and accounts payable
Other related parties
1,524,606
1,255,762
Other payables
Other payables
(v)
Property transactions
Associates
35
600
Other related parties
19,542
-
$
3,536,901
2,889,224
Relationship
Other related
party-Jipo
Investment
Other related
party-CCUS
Associates-RayPal
Biomedical
Item
Acquisition of financial assets at fair
value through other comprehensive
income
Acquisition of the subsidiary
Acquisition of minority shares
For the years ended December 31, 2021
Number of
shares
Acquisition
price
46,197
thousand shares
Object
Common stocks
of Kinpo
1
thousand shares
Common stocks
of CIN
588
thousand shares
Common stocks
of Raycore
Biotech
616,864
226,421
15,129
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
94
(8) Pledged assets:
The carrying values of pledged assets were as follows:
Pledged Assets
Other current assets
Bail for court mandatory execution
Subject
Other current assets
Customs deposit
Other current assets
Pledge deposit
PPE
Long-term borrowings (including current
portion)
Other non-current assets Customs deposit
Other non-current assets Pledge deposit
(9) Commitments and contingencies:
The details of commitments and contingencies were as follows:
December
31, 2021
-
$
December
31, 2020
41,090
336,523
96,880
-
-
466,320
486,581
500
500
544,184
-
$
1,444,407
528,171
(a)
In August 2019, Inventec Corporation filed a lawsuit to the Taiwan Taipei District Prosecutor Office
against the Group concerning its former employees who join 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 immediately. Currently, the case is still in progress in Taipei District
Court; 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, 2021 and 2020, the Group’ s signed commitments to purchase property, plant
and equipment amounted to $290,063 and $473,370, respectively.
(10) Losses due to major disasters: None
(11) Subsequent events:
In response to the industry development trend and the future strategic development of the Group and for
the purpose to integrate resources, provide more comprehensive products and services, increase R&D
capabilities, improve efficiency, and increase competitiveness, the Company plans to acquire 51%~65% of
shares of Poindus Systems Corp, Ltd. (“Poindus Systems”) under the public acquisition as a tender offer
after the resolution of the Board of Directors (hereinafter referred to as the Public Acquisition). The price
of the Public Acquisition is 30 New Taiwan Dollars per share. The aforementioned Public Acquisition as a
tender offer had been completed on March 7, 2022, with a total acquisition of 56.04% of Poindus Systems'
ordinary shares and the total acquisition consideration is $353,046. The settlement was completed on
March 11, 2022.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
95
(12) Other:
(a) The employee benefits, depreciation and amortization expenses by categorized function are
summarized as follows:
By function
By item
Employee benefits
Operating
costs
2021
Operating
expenses
Total
Operating
costs
Salary
Labor and health insurance
Pension
Others
Depreciation
Amortization
15,289,343
1,016,912
1,077,976
2,689,676
5,238,351
78,684
14,136,585
962,630
570,445
631,048
1,090,392
495,684
29,425,928
1,979,542
1,648,421
3,320,724
6,328,743
574,368
17,777,589
841,733
883,287
2,216,080
4,684,438
47,195
2020
Operating
expenses
12,789,968
835,965
500,044
599,320
1,032,002
429,350
Total
30,567,557
1,677,698
1,383,331
2,815,400
5,716,440
476,545
(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, 2021:
(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, 2021 (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: Please refer to Table 6
(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 7
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 8
(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 9
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
96
(b)
Information on investees: Please refer to Table 10
(c)
Information on investment in mainland China: Please refer to Table 11
(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.
(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 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:
For the year ended December 31, 2021
Information
technology
product segment
Strategy
integrated
product segment
Adjustment and
elimination
Total
Revenue
Revenue from external
customers
Interest revenue
Total revenue
Interest expense
Depreciation and amortization
Investment gain (loss)
Other significant non-cash
items:
$
$
$
1,197,441,957
38,240,058
1,950,777
66,537
1,199,392,734
38,306,595
1,011,790
6,335,289
448,562
37,347
567,822
-
-
Impairment of assets
404,513
Reportable segment profit
$
15,201,740
2,266,095
Reportable segment assets
Reportable segment
liabilities
-
-
-
-
-
-
-
-
1,235,682,015
2,017,314
1,237,699,329
1,049,137
6,903,111
448,562
404,513
17,467,835
537,095,340
415,555,537
$
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
97
For the year ended December 31, 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
$
$
Depreciation and amortization
Investment gain (loss)
Other significant non-cash
items:
1,590,643
45,614
1,016,754,599
33,810,909
1,102,805
5,675,006
435,657
46,410
517,979
-
-
Impairment of assets
-
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
$
$
(c)
Products information
The information of revenue from external customers:
Products and services
5C related electronic products
Others
2021
2020
$
1,232,501,394
1,046,282,834
3,180,621
2,646,417
$
1,235,682,015
1,048,929,251
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
98
(d) Geographic information
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
(ii) Non-current assets:
Country
China
Taiwan
Vietnam
Others
2021
486,362,457
$
2020
446,893,526
159,061,285
127,573,036
88,162,373
84,890,214
502,095,900
389,572,475
$
1,235,682,015
1,048,929,251
2021
14,411,598
$
9,837,851
8,708,075
511,749
2020
14,963,036
9,373,521
3,377,464
268,290
$
33,469,273
27,982,311
Non-current assets include plant, property, and equipment, 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 are as follows:
D Company
F Company
A Company
E Company
2021
2020
$
534,800,186
431,621,595
223,256,380
240,039,272
144,069,158
120,376,434
116,116,250
75,903,386
$ 1,018,241,974
867,940,687
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:314)
Table 1 Loans to other parties:
(December 31, 2021)
Name of
lender
No.
0 The
Name of
borrower
UCGI
Company
Account
name
Other
receivables
Related
party
Y
Highest balance
of financing to
other parties
during the
period
Ending
balance
475,325
224,560
Actual
usage
amount
during the
period
224,560
Range of
interest rates
during the
period
Purposes of
fund financing
for the
borrower
1.02%~1.08% Short-term
financing
Transaction
amount for
business
between two
parties
-
0 The
HengHao Other
Company
0 The
CEB
Company
0 The
CEA
Company
1 CIH
CEP
2 CPC
CDE
2 CPC
CIC
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
3 CIT
3 CIT
3 CIT
CCI
Nanjing
Other
receivables
Rayonnant
(Taicang)
Other
receivables
HengHao
Kunshan
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
receivables
7 Panpal
Ray-Kwong
Medical
Other
receivables
8 BSH
CIN
9 Arcadyan Acradyan
Brasil
9 Arcadyan Acradyan
Brasil
9 Arcadyan Arcadyan
UK
Other
receivables
Other
receivables
Other
receivables
Other
receivables
9 Arcadyan Arcadyan
Vietnam
Other
receivables
9 Arcadyan Arcadyan
Vietnam
Other
receivables
9 Arcadyan Arcadyan
Russia
Other
receivables
9 Arcadyan Arcadyan
Russia
Other
receivables
10 Arcadyan
CNC
Holding
10 Arcadyan
CNC
Holding
11 SVA
CNC
Other
receivables
Other
receivables
Other
receivables
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
400,000
200,000
200,000
1.08%
Short-term
financing
1,985,950
553,600
553,600
1.02%~2.05% Short-term
financing
838,800
830,400
830,400
1.02%
57,070
55,360
55,360
3.50%
1,315,200
-
-
2.20%
438,400
434,400
434,400
2.20%
1,997,450
1,937,600
1,561,152
2.00%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
137,098
69,200
-
1.30%~4.35% Short-term
financing
856,050
830,400
830,400
1.30%
998,725
968,800
968,800
1.30%
657,600
651,600
651,600
2.20%
Short-term
financing
Short-term
financing
Short-term
financing
524,640
260,640
173,760 2.00%~2.20% Short-term
financing
570,700
553,600
553,600
1.30%
1,200,000
600,000
600,000
1.08%
10,000
10,000
10,000
1.10%
278,100
276,800
207,600
1.02%
57,020
35,984
35,984
1.00%
55,620
55,360
-
1.00%
285,100
-
285,100
276,800
255,510
-
-
-
-
1.00%
1.00%
1.00%
57,020
-
-
1.00%
27,800
27,800
6,705
1.00%
484,670
-
-
1.00%
470,560
470,560
470,560
1.00%
153,440
-
-
3.85%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Reasons
for
short-
term
financing
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
financing
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
financing
Operating
financing
Allowance
for
bad debt
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,349,995
4,345,760
5,375,096
165,990
-
-
-
-
377,472
-
-
-
-
Operating
financing
Operating
financing
Operating
financing
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
22,272,053
Maximum
limit of fund
financing
44,544,106
Note
(Note 1)
22,272,053
44,544,106
(Note 1)
22,272,053
44,544,106
(Note 1)
22,272,053
44,544,106
(Note 1)
37,397,344
37,397,344
(Note 2)
2,613,831
2,613,831
(Note 3)
2,613,831
2,613,831
(Note 3)
22,323,113
22,323,113
(Note 4)
22,323,113
22,323,113
(Note 4)
22,323,113
22,323,113
(Note 4)
2,838,191
2,838,191
(Note 5)
2,838,191
2,838,191
(Note 5)
4,787,996
4,787,996
(Note 6)
8,676,307
8,676,307
(Note 7)
2,344,758
2,344,758
(Note 8)
1,172,379
2,344,758
(Note 8)
6,580,283
6,580,283
(Note 9)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
132,792
5,062,440
(Note 10)
-
301,977
5,062,440
(Note 10)
2,416,212
2,416,212
(Note 11)
-
2,416,212
2,416,212
(Note 11)
28,344
28,344
(Note 12)
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:305)
Table 1 Loans to other parties:
(December 31, 2021)
Note 1:
Note 2:
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.
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
Note 3:
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
Note 4:
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
Note 5:
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
Note 6:
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
Note 7:
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
Note 8:
Note 9:
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 BSH’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of BSH. When a short-term financing facility with BSH 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 BSH’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
Note 10:
Note 11:
Note 12:
by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of BSH, 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.
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.
According 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 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 SVA. Also,
the amount shall be combined with the SVA's endorsements/guarantees 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 endorsements/guarantees for the borrower when calculating. In addition,
Note 13:
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.
The transactions had been eliminated in the consolidated financial statements.
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:306)
Table 2 Guarantees and endorsements for other parties:
(December 31, 2021)
Counter-party of
guarantee and
endorsement
Name of
guarantor
No.
0 The Company CEB
Name
Relationship
with the
Company
(Note 4)
Limitation on
amount of
guarantees
and
endorsements
for a specific
enterprise
27,840,066
Highest
balance for
guarantees
and
endorsements
during the
period
115,450
Balance of
guarantees
and
endorsements
as of
reporting date
113,488
Property
pledged for
guarantees
and
endorsements
(Amount)
-
Actual usage
amount
during the
period
113,488
0 The Company CEA
(Note 4)
27,840,066
177,786
174,384
174,384
0 The Company CEP
(Note 3)
27,840,066
151,129
99,845
99,845
0 The Company HengHao
Kunshan
1 Arcadyan
Arcadyan
AU
(note 4)
27,840,066
26,160
26,064
26,064
(Note 4)
1,687,480
209,700
207,600
-
-
-
-
-
Ratio of
accumulated
amounts of
guarantees and
endorsements to
net worth of the
latest financial
statements
Maximum
amount
for guarantees
and endorsements
(Note 1(cid:501)(cid:501)2)
0.10%
55,680,132
0.16%
55,680,132
0.09%
55,680,132
0.02%
55,680,132
1.64%
5,062,440
(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
-
Y
Y
Y
Y
-
-
-
-
-
-
Y
-
Note 1:
Note 2:
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 current
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 are
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.
According to Arcadyan's Procedures for Endorsement and Guarantee, the total amount of endorsements/guarantees Arcadyan and its subsidiaries are permitted to make shall not exceed 40% of the
Arcadyan's net worth. Endorsements/guarantees Arcadyan and its subsidiaries are permitted to make for a single company shall not exceed 1/3 of the aforementioned total amount.
Note 3: Subsidiary whose over 50% common stock is directly owned.
Note 4: Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:307)
Table 3 Securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2021)
Name of
holder
Category and name of security
The Company Taiwan Star
Relationship with security
issuer
(cid:4137)
Kinpo
Cal-Comp
The same chairman of the
Company
The same chairman of the
Company
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
HWA VI Venture Capital Corp.
HWA Chi Venture Capital Corp.
mProbe Ltd.
Chen Feng Optoelectronics
TOP Taiwan VI Venture Capital Co.,
Ltd.
IIH Biomedical Venture Fund
Phoenix Innovation Investment
Corporation.
Others
Total
Panpal
Compal Electronics, Inc.
The parent company
Kinpo
The same chairman of the
Company
CDIB Partners Investment Holding
Corp.
(cid:4137)
AcBel
The Chairman of the Board
is the first degree of kinship
of the Chairman of the
Company
Taiwan Biotech Co., Ltd.
(cid:4137)
Others
Total
Gempal
Compal Electronics, Inc.
The parent company
Lian Hong Art. Co., Ltd.
(cid:4137)
Others
Total
Account name
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 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
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 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
Ending balance
Shares/Units
(thousands)
98,046
Carrying
value
441,993
Holding
percentage
(%)
2%
The highest holdings in the
period
Fair value
441,993
Shares/Units
(thousands)
98,046
Holding
percentage
(%)
3%
Note
(In Thousands of shares/ units)
124,044
2,003,307
9%
2,003,307
124,044
9%
259,600
695,728
5%
695,728
259,600
5%
290
18,722
10%
18,722
290
10%
632
13,342
11%
13,342
632
11%
4,000
26,600
3%
26,600
4,000
3%
6,685
101,676
10%
101,676
6,685
13%
402
4,233
2%
4,233
663
3%
5,000
48,800
8%
48,800
5,000
8%
6,000
88,740
19%
88,740
6,000
19%
287,259
___________
3,730,400
31,648
765,884
1%
765,884
31,648
1%
(Note 1)
69,370
1,120,320
5%
1,120,320
69,370
5%
54,000
880,740
5%
880,740
54,000
5%
5,677
207,766
1%
207,766
5,677
1%
6,995
116,883
3%
116,883
6,995
3%
126,498
___________
3,218,091
18,369
444,538
-
444,538
18,369
-
(Note 1)
2,140
108,551
6%
108,551
2,140
8%
2,139
___________
555,228
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:308)
Table 3 Securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2021)
Name of
holder
Hong Ji
Category and name of security
SUYIN Optronics Co., Ltd.
(“SUYIN Optronics”)
Relationship with security
issuer
(cid:4137)
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
BSH
Suzhou Genki Fuhong Health
Management Co., Ltd.
CitiBank RED ARC TERMLIQUIDITY
FUND
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
Ending balance
The highest holdings in the
period
Shares/Units
(thousands)
380
Carrying
value
-
Holding
percentage
(%)
1%
Fair value
-
Shares/Units
(thousands)
380
Holding
percentage
(%)
1%
Note
(Note 2)
(In Thousands of shares/ units)
332
200
1,152
349
60
-
-
-
-
-
1%
7%
5%
5%
14%
-
-
-
-
-
332
1%
(Note 2)
200
7%
(Note 2)
1,152
5%
(Note 2)
349
5%
(Note 2)
60
14%
(Note 2)
37,475
7%
37,475
-
7%
1,650
26,169
7%
26,169
1,650
7%
1,229
-
6%
-
1,229
6%
(Note 2)
___________
63,644
9,000
-
9,000
-
-
-
19%
-
19%
(Note 2)
873
124,560
-
124,560
873
-
4,340
17%
4,340
-
17%
277,312
-
277,312
-
-
-
-
Account name
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
Note 1:The carrying value is the remaining amount after deducting accumulated impairment.
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:309)
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, 2021)
Name of
company
Category and name
of security
Account
name
Name of
counter-party
Relationship
with the
company
Beginning Balance
Purchases
Sales
Others
Ending Balance
Shares/ Units
Amount
Shares/ Units
Amount
Shares/ Units
Price
Cost
Gain (loss)
on disposal Shares/ Units
Amount
Shares/ Units
Amount
(In Thousands of New Taiwan D
Panpal
Stock :
Kinpo
Jipo Investment
Related party
23,172
281,546
46,197
616,864
-
-
-
-
-
221,910
(Note 1)
69,369
1,120,320
Financial assets
at fair value
through other
comprehensive
income-non-
current
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
Financial assets
at fair value
through profit
or loss-current
Agricultural Bank
of China
Bank of China
Bank of
Communications
Industrial and
Commercial Bank
of China
Structured deposits :
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits–
Bank of China RMB
Strcutured Deposit
Yuntong Wealth
Time-type structured
deposit products
Structured deposits–
Industrial and
Commercial Bank of
China RMB
Strcutured Deposit
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–
Industrial and
Commercial Bank of
China RMB
Strcutured 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-
Win-win Interest
Rate Structure RMB
Structural Deposits
Financial assets
at fair value
through profit
or loss-current
Industrial and
Commercial Bank
of China
Agricultural Bank
of China
Agricultural Bank
of China
Bank of China
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits–
Industrial and
Commercial Bank of
China RMB
Strcutured Deposit
Structured deposits-
Kunshan Rural
Commercial Bank
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Fund
RED ARC TERM
LIQUIDITY FUND
Agricultural Bank
of China
Industrial and
Commercial Bank
of China
Kunshan Rural
Commercial Bank
Agricultural Bank
of China
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
Financial assets
at fair value
through profit
or loss-current
Citibank
Financial assets
at fair value
through profit
or loss-current
CIT
CIT
CIT
CIT
CEC
CPO
CPO
CIC
CIC
CET
CET
CNC
CNC
BSH
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,470,031
-
-
-
-
-
261,366
-
241,113
-
-
130,799
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,660,937
781,618
434,232
868,464
542,790
521,078
521,078
495,024
521,078
238,828
390,809
390,513
260,342
1,400,550
-
-
-
-
-
-
-
-
-
-
-
-
3,156,037
3,130,968
791,505
781,618
439,453
434,232
877,521
868,464
546,782
542,790
526,513
521,078
525,696
521,078
761,903
756,390
528,433
521,078
484,885
479,941
395,872
390,809
393,959
390,513
393,905
390,513
1,121,474
1,120,440
25,069
(Note 2)
9,887
(Note 2)
5,221
(Note 2)
9,057
(Note 2)
3,992
(Note 2)
5,435
(Note 2)
4,618
(Note 2)
5,513
(Note 2)
7,355
(Note 2)
4,944
(Note 2)
5,063
(Note 2)
3,446
(Note 2)
3,392
(Note 2)
1,034
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(628)
(Note 1)
(2,798)
(Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
277,312
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.
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:310)
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2021)
If the counter-party is a related party,
disclose the previous transfer information
Transaction
amount
Status of
payment
Counter-
party
415,480 Paid
Natural
person
Relationship
with the
Company
Non-related
party
Owner
Not applicable
Relationship
with the
Company
Not
applicable
Date of
transfer
Not
applicable
Amount
Not
applicable
(In Thousands of New Taiwan Dollars)
References
for
determining
price
Appraisal and
price
negotiation
Purpose of
acquisition
and current
condition
Operational
use
Others
None
Name of
company
Arcadyan
Name of
property
Land located
at Guangfu
Road,
Hsinchu City
Transaction
date
March 17,
2021
(Note 1)
Note 1(cid:506)
In response to business operation, the Group authorized the chairman to purchase land within $500,000 by a resolution of the Board of Directors on March 17, 2021. In addition, the Group
has signed an agreement with non-related parties on April 7, 2021 to purchase land.
Table 6 Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2021)
(In Thousands of New Taiwan Dollars)
Name of
company
CDE
Type of
property
Right-of-use
assets(cid:28860)land
and building
Transaction
date
May 7, 2021
(Note 1)
Acquisition
date
2011~2016
Book value
1,446,029
Transaction
amount
4,147,946
(CNY
956,012
thousand)
Status of
payment
The payment
has been
received.
Gain (losses)
on disposal
1,961,419
Relationship
with the
company
Non-related
party
Purpose of
disposal
Activating
the assets
Counter-
party
Kunshan
XinCheng
Construction
and
Development
Co., Ltd.
References
for
determine
price
Appraisal and
price
negotiation
Note 1: The board of directors resolved to activate assets on May 7, 2021, the Group signed an agreement with a non-related party regarding the disposal of property
Others
None
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:311)
Table 7 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, 2021)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Percentage
of total
purchases/
(sales)
Amount
(749,825)
(0.1)%
Purchase/
(Sale)
Sale
Payment terms
120 days
Unit price
Similar to non-
related parties
Payment Terms
There is no significant
difference
Company
Name
The
Company
Counter
party
UCGI
CBN
CEP
Nature of
relationship
Subsidiaries wholly
owned by the
Company
The Company's
subsidiaries
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
Sale
(803,662)
(0.1)%
Net 90 days from sale
Purchase
218,938
-
120 days
Purchase
149,835,609
13.1%
120 days
Purchase
178,478,231
15.6%
120 days
Purchase
28,688,394
2.5%
120 days
Purchase
42,665,925
3.7%
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
Markup based on
BCI and its
subsidiaries' cost
Purchase
17,101,460
1.5% Net 60 days from purchase Markup based on
Etrade and its
subsidiaries' cost
Kinpo Electronic,
Inc.
Compal Electronic,
Inc.
With the same
chairman
Parent company
Just and its
subsidiaries
Purchase
527,883
-
Sale
(179,037,498)
(99.9)%
35 days from the 1st of the
following month
120 days
Similar to non-
related parties
Similar to non-
related parties
CIH and its
subsidiaries
HSI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(102,464)
(0.1)%
120 days
Purchase
206,180
0.1%
120 days
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(150,179,442)
(93.5)%
120 days
CEA
CEB
With the same
ultimate parent
company
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(428,856)
(0.3)%
120 days
Sale
(390,795)
(0.2)%
120 days
Sale
(3,491,406)
(2.2)%
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
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
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
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
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
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
220,379
0.1% (Note 2)
540,542
0.2% (Note 2)
-
-
(Note 2)
(62,366,178)
(29.6)% (Note 2)
(4,188,862)
(2.0)% (Note 2)
(3,086,146)
(1.5)% (Note 2)
(16,612,130)
(7.9)% (Note 2)
(2,631,399)
(1.2)% (Note 2)
(527,418)
(0.2)%
4,188,862
99.9% (Note 2)
-
-
(Note 2)
(57,375)
(0.1)% (Note 2)
62,366,178
96.5% (Note 2)
207,124
0.2% (Note 2)
261,497
0.2% (Note 2)
1,580,332
1.1% (Note 2)
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:312)
Table 7 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, 2021)
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
HSI and its
subsidiaries
With the same
ultimate parent
company
Purchase/
(Sale)
Sale
Amount
(5,042,538)
Percentage
of total
purchases/
(sales)
(3.1)%
Payment terms
120 days
Unit price
Similar to non-
related parties
Henghao
HSI and its
subsidiaries
Just and its
subsidiaries
CPM
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
An associate
Purchase
245,113
0.2%
120 days
Purchase
712,378
0.5%
120 days
Purchase
102,536
0.1%
120 days
Purchase
4,602,669
Changbao
An associate
Purchase
1,109,808
Acbel and its
subsidiaries
The Chairman of the
Board is the first
degree of kinship of
the Chairman of the
Company
Purchase
1,200,858
3.1%
0.7%
0.8%
120 days
120 days
120 days
Parent company
Purchase
803,108
30.0% Net 90 days from delivery
-
Parent company
Sale
(42,863,233)
(88.6)%
120 days
Sale
(135,499)
(5.6)%
120 days
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
2,304,731
1.6% (Note 2)
(61,174)
(0.1)% (Note 2)
(170,879)
(0.1)% (Note 2)
-
-
(Note 2)
(1,382,777)
(1.1)%
(383,101)
(0.3)%
(552,945)
(0.4)%
(540,542)
(43.0)% (Note 2)
16,612,130
94.0% (Note 2)
1,993,166
2.7% (Note 1(cid:739)2)
Payment Terms
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
There is no significant
difference
There is no significant
difference
There is no significant
difference
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
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
Markup based on
BCI and its
subsidiaries' cost
According to markup
pricing
CBN
BCI and its
subsidiaries
Compal Electronic,
Inc.
Compal Electronic,
Inc.
HSI and its
subsidiaries
CEB
CEA
CIH and its
subsidiaries
CPM
Acbel and its
subsidiaries
CEB
CEA
CIH and its
subsidiaries
BCI and its
subsidiaries
CEA
Cal-Comp
CEA
CEB
CIH and its
subsidiaries
BCI and its
subsidiaries
CEB
Etrade and its
subsidiaries
Compal Electronic,
Inc.
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
An associate
The Chairman of the
Board is the first
degree of kinship of
the Chairman of the
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
The same chairman of
the 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
Parent company
Sale
(590,887)
(1.2)%
120 days
According to markup
pricing
There is no significant
difference
1,269,252
1.4% (Note 2)
Sale
(783,053)
(1.6)%
120 days
According to markup
pricing
There is no significant
difference
507,450
0.6% (Note 2)
Purchase
3,488,526
(7.3)%
120 days
Purchase
475,357
(1.0)%
120 days
Purchase
608,220
1.3%
120 days
According to markup
pricing
Similar to non-
related parties
Similar to non-
related parties
Adjustments will be
made based on demand
for funding
There is no significant
difference
There is no significant
difference
(1,580,332)
1.7% (Note 2)
(178,927)
0.2%
(284,359)
(0.3)%
Sale
(108,252)
(1.9)%
45 days
Similar to non-
related parties
There is no significant
difference
1,537
(0.2)% (Note 2)
Purchase
392,098
6.6%
120 days
Similar to non-
related parties
There is no significant
difference
(261,497)
(15.4)% (Note 2)
Purchase
590,436
9.9%
120 days
Similar to non-
related parties
There is no significant
difference
(1,269,252)
(31.9)% (Note 2)
Purchase
473,416
8.0%
45 days
Similar to non-
related parties
There is no significant
difference
(376,304)
(22.1)% (Note 2)
Purchase
1,468,381
24.7%
120 days
Similar to non-
related parties
There is no significant
difference
(31,855)
(1.9)% (Note 2)
Sale
(473,416)
(9.7)%
45 days
Similar to non-
related parties
There is no significant
difference
376,304
(17.4)% (Note 2)
Purchase
429,390
32.4%
120 days
Similar to non-
related parties
There is no significant
difference
(207,124)
(16.0)% (Note 2)
Purchase
783,338
59.2%
120 days
Similar to non-
related parties
There is no significant
difference
(507,450)
(39.3)% (Note 2)
Purchase
108,252
1.8%
45 days
Similar to non-
related parties
There is no significant
difference
(1,537)
(0.1)% (Note 2)
Sale
(17,096,471)
(99.5)% Net 60 days from delivery According to markup
pricing
HSI and its
subsidiaries
With the same
ultimate parent
company
Purchase
1,639,840
14.2% Net 60 days from purchase Similar to non-
related parties
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
2,631,399
98.2% (Note 2)
(246,217)
(10.0)% (Note 2)
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:313)
Table 7 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, 2021)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
Forever and its
subsidiaries
Counter
party
HSI and its
subsidiaries
UCGI
Avalue and its
subsidiaries
Nature of
relationship
With the same
ultimate parent
company
An affiliate of the
ultimate parent
company
Purchase/
(Sale)
Sale
Amount
(242,089)
Percentage
of total
purchases/
(sales)
Payment terms
Unit price
100.0% Net 60 days from purchase Similar to non-
related parties
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
46,437
(100.0)% (Note 2)
Payment Terms
There is no significant
difference
Sale
(166,677)
16.5% 45 days after the month
ended
Similar to non-
related parties
There is no significant
difference
23,533
(11.7)%
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
(220,379)
(94.1)% (Note 2)
61,174
1.7% (Note 2)
-
-
(Note 2)
3,086,146
86.8% (Note 2)
57,375
0.8% (Note 2)
246,217
3.2% (Note 2)
170,879
2.3% (Note 2)
(2,304,731)
(13.0)% (Note 2)
(1,993,166)
(15.1)% (Note 1(cid:739) 2)
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
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
HengHao
CEP
Compal Electronic,
Inc.
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Purchase
757,372
92.3%
120 days
With the same
ultimate parent
company
Sale
(245,484)
(2.1)%
120 days
Parent company
Sale
(220,757)
(99.8)%
120 days
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(28,700,918)
(84.9)%
120 days
Just and its
subsidiaries
With the same
ultimate parent
company
Etrade and its
subsidiaries
With the same
ultimate parent
company
CIH and its
subsidiaries
With the same
ultimate parent
company
CIH and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(207,079)
(0.6)%
120 days
Sale
(1,639,069)
(4.9)% Net 60 days from delivery Similar to non-
related parties
Sale
(712,526)
(2.1)%
120 days
Purchase
4,867,677
16.2%
120 days
Purchase
98,879
8.8%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
With the same
ultimate parent
company
The Chairman of the
Board is the first
degree of kinship of
the Chairman of the
Company ultimate
parent company
Arcadyan's subsidiary
Forever and its
subsidiaries
Acbel and its
subsidiaries
Acradyan
Germany
Acradyan
USA
Acradyan
AU
CNC
Acradyan
Vietnam
Arcadyan
Arcadyan
Arcadyan
Arcadyan
Arcadyan
CNC
Acradyan
Vietnam
Acradyan
Germany
Acradyan
USA
-
-
-
Sale
(1,226,052)
(3.0)% Net 150 days from delivery
Arcadyan's subsidiary
Sale
(7,323,420)
(20.0)% Net 120 days from delivery
Arcadyan's subsidiary
Sale
(505,287)
(1.0)% Net 60 days from the end of
the month of delivery
Arcadyan's subsidiary Purchase
12,985,802
26.0% Net 120 days from delivery According to markup
Arcadyan's subsidiary Purchase
1,091,354
2.0% Net 180 days from the end of
the month of delivery
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
Sale
(12,985,802)
(100.0)% Net 120 days from delivery According to markup
Sale
(1,091,354)
(100.0)% Net 180 days from the end of
the month of delivery
Purchase
1,226,052
100.0% Net 150 days from delivery
Purchase
7,323,420
100.0% Net 120 days from delivery
pricing
According to markup
pricing
-
-
Purchase
242,089
0.8%
60 days after the delivery Similar to non-
related parties
There is no significant
difference
(46,437)
(0.3)% (Note 2)
Purchase
168,952
0.6%
120 days
Similar to non-
related parties
There is no significant
difference
(79,867)
(0.5)%
-
-
-
-
-
-
-
-
-
266,118
4.0% (Note 2)
2,020,989
29.0% (Note 2)
23,439
- % (Note 2)
(2,028,930)
(27.0)% (Note 1(cid:739)2)
(Note 3)
- % (Note 1(cid:739)2)
2,028,930
- % (Note 1(cid:739)2)
(Note 3)
- % (Note 1(cid:739)2)
(266,118)
(100.0)% (Note 2)
(2,020,989)
(100.0)% (Note 2)
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:314)
Table 7 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, 2021)
Company
Name
Acradyan
AU
Counter
party
Arcadyan
Nature of
relationship
With the same
ultimate parent
company
Purchase/
(Sale)
Purchase
Transaction details
Percentage
of total
purchases/
(sales)
Amount
Payment terms
505,287
100.0% Net 60 days from the end of
the month of delivery
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Unit price
-
Payment Terms
-
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
(23,439)
100% (Note 2)
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, 2021 is 1,276,111 thousand dollars.
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:305)
Table 8 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
Overdue
Amount
-
Action taken
-
(In Thousands of New Taiwan Dollars)
Amounts received in
subsequent period
297,600 (Note 1)
Allowance
for bad
debts
-
Nature of
relationship
The Company's
subsidiary
The Company's
subsidiary
The same chairman of
the Company
Parent company
Ending Balance
540,542
220,379
Turnover
rate
1.93
3.04
1,697,598
-
4,188,862
33.34
Parent company
62,366,178
(December 31, 2021)
Name of Company
The Company
Counter-party
CBN
The Company
UCGI
The Company
Cal-Comp
Just and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
CEA
Etrade and its
subsidiaries
HSI and its
subsidiaries
HSI and its
subsidiaries
HSI and its
subsidiaries
Arcadyan
Arcadyan
Arcadyan
CNC
CBN
Compal Electronic,
Inc.
Compal Electronic,
Inc.
CEA
CEB
BCI and its
subsidiaries
HSI and its
subsidiaries
Compal Electronic,
Inc.
HSI and its
subsidiaries
CEB
CEA
CEB
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Etrade 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
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
Parent company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
CIH and its
subsidiaries
Arcadyan Germany Arcadyan's subsidiary
Arcadyan USA
Arcadyan's subsidiary
Arcadyan Vietnam Arcadyan's subsidiary
Arcadyan
With the same
Just and its
subsidiaries
With the same
ultimate parent
company
Note 1:Balance as of Mrach 4, 2022.
Note 2:Balance as of Mrach 1, 2022.
Note 3:Balance as of Mrach 9, 2022.
Note 4:Other receivables due to purchasing on behalf of related parties.
Note 5:Accounts receivables due to processing raw material.
Note 6:Other receivables due to processing and sales of raw material.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.63
4.14
207,124
261,497
2.36
1,580,332
2.23
2,304,731
2.08
16,612,130
1,993,166
3.16
0.06
1,269,252
0.45
507,450
3.09
376,304
2.52
2,631,399
3,086,146
246,217
5.34
3.54
6.14
170,879
8.32
4.82
4.79
(Note 4)
4.78
266,118
2,020,989
1,276,111
(Note 4)
2,028,930
(Note 5)
182,739
(Note 6)
-
12,530
Enhanced the
collection
88,156 (Note 1)
1,697,598 (Note 1)
-
(Note 1)
62,366,178 (Note 1)
161,410 (Note 1)
134,253 (Note 1)
-
-
(Note 1)
(Note 1)
16,612,130 (Note 1)
-
(Note 1)
135,132 (Note 1)
448,708 (Note 1)
366,319 (Note 1)
1,843,015 (Note 1)
2,302,953 (Note 1)
-
-
(Note 1)
(Note 1)
94,823 (Note 2)
1,360,434 (Note 2)
(Note 2)
-
1,854,400 (Note 2)
175,468 (Note 3)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:306)
Table 9 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2021)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1) Company name
Counter party
0
The Company
CBN
Relationship
(Note 2)
1
Accounts name
Sales Revenue
Amount
803,662
0
The Company
UCGI
1
1
2
2
2
2
2
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
CEA
CIH and its
subsidiaries
CEB
CIH and its
subsidiaries
BCI and its
subsidiaries
CIH and its
subsidiaries
HSI and its
subsidiaries
BCI and its
subsidiaries
The Company
Accounts Receivable
Sales Revenue
540,542
749,825
Accounts Receivable
Sales Revenue
220,379
179,037,498
Accounts Receivable
Sale Revenue
4,188,862
102,464
Accounts Receivable
Sales Revenue
-
150,179,442
Accounts Receivable
Sales Revenue
62,366,178
428,856
Accounts Receivable
Sales Revenue
207,124
390,795
Accounts Receivable
Sales Revenue
261,497
3,491,406
Accounts Receivable
Sales Revenue
1,580,332
5,042,538
Accounts Receivable
Sales Revenue
2,304,731
42,863,233
1
2
3
2
3
3
3
3
2
Terms
There is no significant difference
of price to non-related parties. The
credit period is net 90 days.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
The price is based on BCI and its
subsidiaries's operating cost. The
credit period is net 120 days, and
will be adjusted if necessary.
Accounts Receivable
16,612,130
(cid:741)
Percentage of the
consolidated net
revenue or total
assets
0.1%
0.1%
0.1%
-
14.5%
0.8%
-
-
12.2%
11.6%
-
-
-
-
0.3%
0.3%
0.4%
0.4%
3.5%
3.1%
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:307)
Table 9 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2021)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1) Company name
Counter party
3
3
3
BCI and its
subsidiaries
HSI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
CEB
CEA
4
CEB
CEA
5
CEA
CEB
6
7
Etrade and its
subsidiaries
The Company
Forever and its
subsidiaries
HSI and its
subsidiaries
8
HHT
CIH and its
subsidiaries
9
CEP
The Company
10
HSI and its
subsidiaries
The Company
10
HSI and its
subsidiaries
Just and its
subsidiaries
10
HSI and its
subsidiaries
Etrade and its
subsidiaries
Relationship
(Note 2)
3
Accounts name
Sales Revenue
Amount
135,499
Accounts Receivable
Sales Revenue
1,993,166
590,887
Accounts Receivable
Sale Revenue
1,269,252
783,053
Accounts Receivable
Sale Revenue
507,450
108,252
Accounts Receivable
Sale Revenue
1,537
473,416
Accounts Receivable
Sales Revenue
376,304
17,096,471
Accounts Receivable
Sales Revenue
2,631,399
242,089
Accounts Receivable
Sales Revenue
46,437
245,484
Accounts Receivable
Sales Revenue
61,174
220,757
Accounts Receivable
Sales Revenue
-
28,700,918
Accounts Receivable
Sales Revenue
3,086,146
207,079
Accounts Receivable
Sales Revenue
57,375
1,639,069
3
3
3
3
2
3
2
2
2
3
3
Terms
The price is based on the
operating cost. The credit period
is net 120 days, and will be
adjusted if necessary.
(cid:741)
The price is based on the
operating cost. The credit period
is net 120 days.
(cid:741)
The price is based on the
operating cost. The credit period
is net 120 days.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 45 days.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 45 days.
(cid:741)
The price is based on the
operating cost. The credit period
is net 60 days from delivery, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 60 days after
the delivery.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 60 days, and
will be adjusted if necessary.
Percentage of the
consolidated net
revenue or total
assets
-
0.4%
-
0.2%
-
-
-
-
-
0.1%
1.4%
0.5%
-
-
-
-
-
-
2.3%
0.6%
-
-
0.1%
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:308)
Table 9 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2021)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1) Company name
Counter party
Relationship
(Note 2)
10
HSI and its
subsidiaries
CIH and its
subsidiaries
11
Arcadyan
Arcadyan
Germany
11
Arcadyan
Arcadyan USA
11
Arcadyan
Arcadyan AU
11
Arcadyan
Arcadyan Vietnam
12
CNC
Arcadyan
13
Arcadyan Vietnam Arcadyan
3
3
3
3
3
3
3
Accounts name
Accounts Receivable
Sales Revenue
Amount
246,217
712,526
Accounts Receivable
Sales Revenue
170,879
1,226,052
Accounts Receivable
Sales Revenue
266,118
7,323,420
Accounts Receivable
Sales Revenue
2,020,989
505,287
Accounts Receivable
Other Receivable
23,439
1,276,111
Processing Revenue
12,985,802
Accounts Receivable
Processing Revenue
2,028,930
1,091,354
Terms
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days, and
will be adjusted if necessary.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 150 days from
delivery.
(cid:741)
There is no significant difference
of price to non-related parties. The
credit period is net 120 days from
delivery.
(cid:741)
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.
(cid:741)
The credit period is net 180 days
from the end of the month of
delivery and depended on funding
demand.
The price is based on the
operating cost. The credit period
is net 120 days from delivery and
depended on funding demand.
(cid:741)
The credit period is net 180 days
from the end of the month of
delivery and depended on funding
demand.
Percentage of the
consolidated net
revenue or total
assets
-
0.1%
-
0.1%
-
0.6%
0.4%
-
-
0.2%
1.1%
0.4%
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)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:309)
Table 10 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
Investor
Company
Investee
Company
The Company Kinpo&Compal Group Assets
Development Corporation
Bizcom
Just
CIH
Panpal
Gempal
Original Investment Amount
December 31,
2021
525,000
December 31,
2020
-
Ending Balance
Percentage
of
Shares
52,500
Ownership Carrying Value
525,085
70%
Shares
52,500
The highest holdings in the period
(In Thousands of New Taiwan Dollars/ shares)
Percentage of
Ownership
Net income
(losses) of
investee
Share of
profits/losses of
investee
1
120
85
Note
(Note 2)
36,369
36,369
100
100%
404,559
100
100%
(19,042)
(15,326)
(Note 2)
1,480,509
1,480,509
48,010
100%
9,577,912
48,010
100%
2,038,308
2,038,308
(Note 2)
1,787,680
1,787,680
53,001
100%
37,410,192
53,001
100%
3,196,352
3,196,352
(Note 2)
Main Businesses
and Products
Location
Taipei City
Real estate development
leasing and related
management business
Houston, USA Warranty services and
marketing of LCD TVs and
notebook PCs
Investment
British Virgin
Islands
British Virgin
Islands
Investment
Taipei City
Investment
5,171,837
5,171,837
500,000
100%
5,120,741
500,000
Taipei City
Investment
900,036
900,036
90,000
100%
1,716,614
90,000
(Note 1)
Kinpo Group management
Taipei City
Consultation, training
services, etc.
3,000
3,000
300
38%
4,776
300
(Note 1)
100%
100%
38%
19,461
(31,176)
(Note 2)
145,081
115,690
(Note 2)
288
117
Tainan City Manufacturing of electric
appliance and audiovisual
electric products
Management&Consultant,
rental and leasing business and
wholesale and retail of
medical equipments
Taipei City
60,000
60,000
6,000
100%
102,074
6,000
100%
21,471
18,593
(Note 2)
200,000
200,000
20,000
100%
101,881
20,000
100%
(21,226)
(23,402)
(Note 2)
42,000
42,000
2,772
42%
-
2,772
42%
34
34
1
100%
3,262,334
6,000
6,000
600
100%
3,120
1
600
Allied Circuit
Taoyuan City Production and sales of PCB
395,388
395,388
10,158
20%
398,995
10,158
-
1,260
-
-
-
126
90,000
90,000
100,000
52%
57,303
100,000
-
-
-
-
(Note 2)
382
347
(Note 2)
390,431
79,707
-
-
(31,249)
(16,261)
(Note 2)
100%
100%
20%
23%
52%
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
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
County
Taipei City
489,450
489,450
98
49%
711,499
Investment
197,463
197,463
6,427
100%
767,803
35,000
-
3,500
149,547
149,547
3,739
35%
33%
33,971
71,758
R&D of MEMS microphone
related products
Manufacturing, processing,
and selling resistor chips,
networking chips, diodes,
multilayer ceramic capacitors,
semiconductor devices, and
selling electronic products
98
6,427
3,500
3,739
49%
284,726
139,516
100%
1,706
1,706
(Note 2)
35%
33%
(2,940)
(1,029)
(Note 2)
41,617
13,830
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%
1,136,788
359,218
252,821
100,000
29,500
21,756
100%
100%
53%
89,224
39,395
41,445
89,224
39,395
22,068
(Note 2)
(Note 2)
(Note 2)
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%
125,347
3,000
100%
4,074
4,074
(Note 2)
1,325,132
1,325,132
41,305
19%
2,493,682
41,305
20%
1,787,544
351,746
(Note 2)
Ripal
Unicore
Lead-Honor Optronics. Co., Ltd.
(“Lead-Honor”)
CEH
Shennona Taiwan
Maxima Ventures I, Inc.
(“Maxima”)
Aco Smartcare
Lipo Holding Co., Ltd.(“Lipo”)
CPE
Starmems
Crownpo Technology
Inc. (“Crownpo”)
Hong Ji
Hong Jin
Mactech
Auscom
Arcadyan
FGH
Shennona
HSI
CEP
British Virgin
Islands
Delaware,
USA
British Virgin
Islands
Poland
Hippo Screen Neurotech Co., Ltd.
Taipei City
Infinno Technology Corporation
(“Infinno”)
Hsinchu
County
HengHao
Taipei City
BCI
CBN
British Virgin
Islands
Hsinchu
County
Investment
2,754,741
2,754,741
89,755
100%
4,752,330
89,755
Medical care IOT business
32,665
32,665
2,600
100%
1,098
2,600
100%
100%
(62,830)
(62,830)
(Note 2)
(92)
(92)
(Note 2)
Investment
1,346,814
1,346,814
42,700
54%
57,547
42,700
54%
(856,715)
(300,169)
(Note 2)
Maintenance and warranty
services of notebook PCs
Management & Consultant,
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
Manufacturing of PCs,
computer periphery devices,
and electronic components
Investment
R&D and sales of cable
modem, digital setup box, and
other communication products
90,156
90,156
136
100%
(3,097)
112,000
42,000
9,100
91%
58,858
136
9,100
100%
(20,160)
(18,034)
(Note 2)
91%
(25,053)
(22,724)
(Note 2)
127,026
109,837
4,648
28%
37,824
5,650
28%
28,574
7,873
5,729,757
5,529,757
20,015
100%
(484,153)
20,015
100%
(425,641)
(425,641)
(Note 2)
2,636,051
2,636,051
90,820
100%
7,179,197
90,820
100%
908,947
908,947
(Note 2)
284,827
284,827
29,060
43%
682,558
29,060
43%
32,744
14,204
(Note 2)
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:310)
Table 10 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
Investor
Company
Investee
Company
The Company Rayonnant
CRH
Acendant Private Equity
Investment Ltd. (“APE”)
Etrade
Webtek
Forever
UCGI
Palcom
Avalue
CORE
GLB
CGSP
ARCE
Location
Taipei City
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Taipei City
Taipei City
New Taipei
City
British Virgin
Islands
New Taipei
City
Poland
Taipei City
Raypal
Taipei City
Original Investment Amount
December 31,
2021
295,000
December 31,
2020
295,000
Ending Balance
Percentage
of
Shares
29,500
Ownership Carrying Value
150,785
100%
Shares
29,500
The highest holdings in the period
(In Thousands of New Taiwan Dollars/ shares)
Percentage of
Ownership
Net income
(losses) of
investee
Share of
profits/losses of
investee
100%
35,093
29,295
Note
(Note 2)
377,328
377,328
12,500
100%
228,858
12,500
100%
43,721
43,721
(Note 2)
943,922
943,922
31,253
1,532,029
1,532,029
46,900
35%
65%
1,305,068
31,253
(184,795)
46,900
3,340
1,575
3,340
1,575
100
50
100%
679,564
100%
1,304,552
100
50
489,998
199,999
10,000
100%
(37,303)
10,000
100,000
547,595
100,000
547,595
10,000
14,924
100%
21%
113,123
626,851
10,000
14,924
35%
65%
100%
100%
100%
100%
21%
603,543
209,561
632,364
516,481
(Note 2)
116,378
116,378
(Note 2)
12,658
12,658
(Note 2)
53,840
53,926
(Note 2)
4,426
196,505
3,976
43,341
(Note 2)
Main Businesses
and Products
Manufacturing and sales of
PCs, computer periphery
devices, and electronic
components
Investment
Investment
Investment
Investment
Investment
Manufacturing and retail sale
of computers and electronic
components
Selling of mobile phones
Manufacturing, processing,
and import and export
business of industrial
motherboards
Investment
4,318,860
4,318,860
147,000
100%
6,580,283
147,000
100%
(569,898)
(569,898)
(Note 2)
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
246,860
246,860
15,000
50%
330,604
15,000
89,669
37
-
100%
86,855
-
50%
100%
24,917
12,585
(Note 2)
(1,700)
(1,741)
(Note 2)
60,000
60,000
20,000
33%
44,309
20,000
33%
(46,608)
(15,543)
155,076
155,076
3,446
30%
144,270
3,446
30%
(22,602)
(6,781)
Panpal
Arcadyan
Hsinchu City Telecommunication equipment
279,202
279,202
8,192
4%
539,351
8,192
4%
1,787,544
__________
88,293,659
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipment and
materials import and
manufacturing
Allied Circuit
Taoyuan City Production and selling of PCB
148,263
148,263
2,927
6%
114,974
2,927
6%
390,431
boards
Gempal
Others
Arcadyan
Hsinchu City Telecommunication equipment
306,655
306,655
9,279
4%
75,937
635,925
9,279
4%
1,787,544
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipment and
materials import and
manufacturing
Allied Circuit
Taoyuan City Production and selling of PCB
53,645
53,645
3,220
6%
126,471
3,220
6%
390,431
boards
Hong Ji
Others
Arcadyan
Hsinchu City Telecommunication equipment
306,655
306,655
9,279
4%
175
635,925
9,279
4%
1,787,544
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipment and
materials import and
manufacturing
Allied Circuit
Taoyuan City Production and selling of PCB
10,389
10,389
851
2%
28,554
851
2%
390,431
boards
Hong Jin
Arcadyan
Hsinchu City Telecommunication equipment
131,942
131,942
4,609
2%
300,876
4,609
2%
1,787,544
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipment and
materials import and
manufacturing
Just
CDH (HK)
Hong Kong
Investment
1,724,395
1,724,395
62,298
100%
7,336,510
62,298
100%
2,033,586
CII
CPI
British Virgin
Islands
Investment
British Virgin
Islands
Investment
255,902
255,902
9,245
100%
232,596
9,245
100%
(469)
13,840
13,840
500
100%
831,308
500
100%
2,720
__________
6,573,057
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
Investment
gain(losses)
recognized by
Just
Investment
gain(losses)
recognized by
Just
Investment
gain(losses)
recognized by
Just
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:311)
Table 10 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
Investor
Company
CII
Smart
Investee
Company
Main Businesses
and Products
Investment
December 31,
2021
December 31,
2020
28
28
Location
British Virgin
Islands
Original Investment Amount
The highest holdings in the period
(In Thousands of New Taiwan Dollars/ shares)
Ending Balance
Percentage
of
Shares
1
Ownership Carrying Value
350
100%
Shares
Percentage of
Ownership
Net income
(losses) of
investee
Share of
profits/losses of
investee
1
100%
(3)
AEI
MEL
MTL
U.S.A
Sales and maintenance of LCD
TVs
27,680
27,680
1,000
100%
43,364
1,000
100%
(491)
U.S.A
Investment
227,917
227,917
U.S.A
Investment
28
28
-
-
100%
188,891
100%
28
-
-
100%
100%
25
-
CIH
CIH (HK)
Hong Kong
Investment
2,070,533
2,070,533
74,803
100%
36,259,088
74,803
100%
3,482,248
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
203,448
203,448
7,350
100%
98,697
7,350
100%
373
28
28
1
100%
430,130
1
100%
7,570
412,432
412,432
14,900
100%
412,895
14,900
100%
-
141,168
141,168
5,100
51%
25,433
5,100
51%
187
1,854,560
1,854,560
67,000
100%
221,043
67,000
100%
(869,094)
Goal
British Virgin
Islands
Investment
351,536
351,536
12,700
100%
304,117
12,700
100%
12,379
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
1,854,560
1,854,560
67,000
100%
221,043
67,000
100%
(869,094)
351,536
351,536
12,700
100%
305,603
12,700
100%
12,379
BCI
CMI
British Virgin
Islands
Investment
2,237,098
2,237,098
80,820
100%
4,503,395
80,820
100%
578,634
PRI
British Virgin
Islands
Investment
276,800
276,800
10,000
100%
2,675,803
10,000
100%
330,312
CORE
BSH
British Virgin
Islands
Investment
4,068,960
4,068,960
147,000
100%
6,580,283
147,000
100%
(569,898)
BSH
Mithera
Cayman
Islands
Investment
138,400
138,400
-
99%
129,444
-
99%
(3,059)
HSI
CIN
U.S.A
Manufaturing
226,421
British Virgin
Islands
Investment
1,024,160
1,024,160
37,000
46%
467,614
37,000
46%
(856,715)
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
55,360
55,360
-
-
1
100%
190,352
1
100%
(35,101)
-
-
100%
-
100%
16,398
-
-
100%
-
100%
13,289
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)
Investment
gain(losses)
recognized by
CII
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
Investment
gain(losses)
recognized by
HSI
Investment
gain(losses)
recognized by
HSI
Investment
gain(losses)
recognized by
IUE
Investment
gain(losses)
recognized by
Goal
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
CORE
Investment
gain(losses)
recognized by
BSH
Investment
gain(losses)
recognized by
BSH
Investment
gain(losses)
recognized by
BSH
Investment
gain(losses)
recognized by
Forever
Investment
gain(losses)
recognized by
Forever
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:312)
Table 10 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
Investor
Company
Investee
Company
Webtek
Etrade
Main Businesses
and Products
Investment
December 31,
2021
692,000
December 31,
2020
692,000
Location
British Virgin
Islands
Original Investment Amount
The highest holdings in the period
(In Thousands of New Taiwan Dollars/ shares)
Ending Balance
Percentage
of
Shares
25,000
Ownership Carrying Value
(54,057)
35%
Shares
25,000
Percentage of
Ownership
Net income
(losses) of
investee
Share of
profits/losses of
investee
35%
632,364
Unicore
Raycore
Taipei City
Animal medication retail and
wholesale
40,692
25,500
588
100%
29,252
1,275
100%
(1,629)
Arcadyan
Arcadyan Holding
British Virgin
Islands
Investment
2,219,782
2,359,732
64,780
100%
2,323,746
64,780
100%
335,159
Arcadyan USA
U.S.A
Sales of wireless network
products
23,055
23,055
1
100%
162,359
1
100%
83,123
Arcadyan Germany
Germany
Technology support and sales
of wireless network products
1,125
1,125
0.5
100%
76,914
0.5
100%
8,474
Arcadyan Korea
Korea
Sales of wireless network
products
2,879
2,879
20
100%
11,899
20
100%
(436)
Zhi-Bao
Taipei City
Investment
48,000
48,000
34,980
100%
415,117
34,980
100%
6,825
TTI
Taipei City
R&D and sales of household
digital products
308,726
308,726
25,028
61%
371,174
25,028
61%
(219,951)
AcBel Telecom
Taipei City
Investment
23,000
23,000
4,494
51%
32,638
4,494
51%
(121)
Arcadyan UK
UK
Technical support of wireless
network products
1,988
1,988
50
100%
4,206
Arcadyan AU
Australia
Sales of wireless network
products
1,161
1,161
50
100%
41,705
50
50
100%
793
100%
3,213
Arcadyan RU
Russia
Sales of wireless network
products
7,672
2,492
-
100%
5,856
-
100%
(1,361)
CBN
Hsinchu
County
Sales of communication and
electronic components
11,925
11,925
533
1%
12,642
533
1%
32,744
Arcadyan and
Zhi-Bao
Arcadyan Brasil
Brazil
Sales of wireless network
products
81,593
81,593
968
100%
(14,827)
968
100%
(148)
Arcadyan India
India
Sales of wireless network
products
13,507
-
3,500
100%
11,389
3,500
100%
(1,448)
Arcadyan
Holding
Sinoprime
British Virgin
Islands
Investment
804,104
527,304
29,050
100%
854,011
29,050
100%
138,028
Arch Holding
British Virgin
Islands
Investment
304,784
304,784
35
100%
1,045,972
35
100%
186,372
TTI
Quest
Samoa
Investment
33,216
33,216
1,200
100%
(64,119)
1,200
100%
(96,963)
TTJC
Japan
Sales of household digital
electronic products
9,626
9,626
0.7
100%
3,945
1
100%
(1,325)
Quest
Exquisite
Samoa
Investment
32,386
32,386
1,170
100%
(76,480)
1,170
100%
(96,967)
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless
network products
802,720
525,920
-
100%
849,942
-
100%
138,028
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
19%
311,536
13,140
20%
32,744
257,454
257,454
8,651
41%
152,994
8,651
41%
76,203
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(cid:739)3)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
Investment
gain(losses)
recognized by
Webtek
Investment
gain(losses)
recognized by
Unicore
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
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
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Holding
Investment
gain(losses)
recognized by
Arcadyan
Holding
Investment
gain(losses)
recognized by
TTI
Investment
gain(losses)
recognized by
TTI
Investment
gain(losses)
recognized by
Quest
Investment
gain(losses)
recognized by
Sinoprime
Investment
gain(losses)
recognized by
Zhi-Bao
Investment
gain(losses)
recognized by
Rayonnant
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:313)
Table 10 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
Investor
Company
Investee
Company
Location
Main Businesses
and Products
December 31,
2021
December 31,
2020
Rayonnant
Forming Co., Ltd.
Taoyuan City R&D and manufacturing of
27,300
27,300
electronic materials
Original Investment Amount
The highest holdings in the period
(In Thousands of New Taiwan Dollars/ shares)
Ending Balance
Percentage
of
Shares
1,820
Ownership Carrying Value
-
21%
Shares
1,820
Percentage of
Ownership
Net income
(losses) of
investee
Share of
profits/losses of
investee
21%
-
CRH
APH
APH
PEL
British Virgin
Islands
Investment
British Virgin
Islands
Investment
346,000
346,000
12,500
59%
228,858
12,500
59%
76,203
87,220
87,220
3,151
100%
39,230
3,151
100%
2,243
Rayonnant(HK)
Hong Kong
Investment
498,240
498,240
18,000
100%
335,238
18,000
100%
73,960
HHT
HHA
HHA
HHB
British Virgin
Islands
Investment
British Virgin
Islands
Investment
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
1,429,235
1,429,235
46,882
100%
(648,644)
46,882
100%
(476,081)
1,297,695
1,297,695
46,882
100%
(648,584)
46,882
100%
(476,081)
6,842
6,842
20
100%
5,410
20
100%
(271)
7,016
7,016
20
100%
6,022
20
100%
(124)
Starmems
Hsinchu
County
R&D of MEMS microphone
related products
10,000
-
1,000
10%
9,706
1,000
10%
(2,940)
FGH
Wah Yuen Technology Holding Ltd.
and its subsidiaries
Mauritius
Investment
2,484,432
2,484,432
95,862
37%
4,815,888
95,862
37%
(62,723)
GLB
RBL
New Taipei
City
Detectors and test strip
-
6,500
-
0%
-
1,275
100%
(334)
Mactech
Taiwan Intelligent Robotics
Company, LTD.
Taipei City
Manufacturing of equipment
43,200
43,200
2,160
17%
16,763
2,160
20%
(17,477)
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 subsidiary was incorporated on March 25, 2021.
Note 4: Liquidation was completed in July, 2021.
Note
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
Investment
gain(losses)
recognized by
Rayonnant
Investment
gain(losses)
recognized by
CRH
Investment
gain(losses)
recognized by
APH
Investment
gain(losses)
recognized by
APH
Investment
gain(losses)
recognized by
HHT
Investment
gain(losses)
recognized by
HHA
Investment
gain(losses)
recognized by
CBN
Investment
gain(losses)
recognized by
CBN
Investment
gain(losses)
recognized by
CBN
Investment
gain(losses)
recognized by
FGH
Investment
gain(losses)
recognized by
GLB
Investment
gain(losses)
recognized by
Mactech
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:306)(cid:314)
Table 11 Information on investment in Mainland China:
(December 31, 2021)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2021
1,024,160
Investment flows
Outflow
-
Inflow
-
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2021
1,024,160
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
689,977
100%
689,977
Book value
2,621,488
Accumulated
remittance of
earnings in
current
period
-
(In Thousands of New Taiwan Dollars/ shares)
Total amount of
paid-in capital
1,024,160
Method of
investment
(Note 1)
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
CST
Main businesses and
products
Manufacturing and
sales of monitors
Manufacturing and
sales of notebook PCs,
mobile phones, and
Digital products
Manufacturing of
notebook PCs
Research, manufacture
and sales of
communication
devices, mobile
phones, electronic
computer, smart
watch, and provide
related technology
service
Research &
development, and
manufacturing latest
electronic components,
precision cavity mold,
design and
manufacturing for
standard parts for
molds, and selling self
-produced products
Manufacturing of
notebook PCs
Maintenance and
warranty service of
notebook PCs
Production and
processing chip
resistors, 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(cid:414) 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
Manufacturing of
notebook PCs
Manufacturing and
sales of LCD TVs
Manufacturing of
notebook PCs
International trade and
distribution of
computers and
electronic components
-
-
553,600
(Note 2)
553,600
332,160
(Note 2)
332,160
260,395
(Note 2)
(Note 3)
-
-
-
68,467
(Note 2)
(Note 3)
-
27,680
(Note 2)
27,680
8,680
(Note 2)
(Note 3)
885,760
(Note 1)
368,974
-
-
-
-
-
-
-
-
-
-
553,600
(22,978)
100%
(22,978)
77,074
332,160
162,364
100%
162,364
4,795,313
555,435
100%
555,435
568,446
-
-
-
-
51%
-
(43,020)
-
27,680
27,737
100%
27,737
(158,184)
-
(19,533)
100%
(19,533)
(45,016)
368,974
256,101
43%
110,585
535,940
-
-
-
553,600
(Note 1)
40,690
-
-
40,690
175,713
48%
83,640
542,279
-
332,160
(Note 2)
332,160
334,928
(Note 1)
334,928
664,320
(Note 2)
664,320
38,752
(Note 2)
38,752
-
-
-
-
-
-
-
-
332,160
881,782
100%
881,782
8,676,307
334,928
61,872
100%
61,872
2,838,177
664,320
2,020,686
100% 2,020,686
22,323,113
38,752
1,442
100%
1,442
48,140
-
-
-
-
(Continued)
(cid:33)(cid:33)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:307)(cid:305)
Table 11 Information on investment in Mainland China:
(December 31, 2021)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2021
141,168
Investment flows
Outflow
-
Inflow
-
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2021
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
141,168
187
51%
96
Accumulated
remittance of
earnings in
current
period
-
Book value
57,161
(In Thousands of New Taiwan Dollars/ shares)
Total amount of
paid-in capital
276,800
Method of
investment
(Note 2)
Name of
investee
Sheng Bao Precision
Electronics (Taicang)
Co., Ltd.
CIJ
CDE
CIS
CEC
CMC
CEQ
Main businesses and
products
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
Changbao Electronic
Technology
(Chongqing) Co., Ltd.
Rayonnant (Taicang)
CCI Nanjing
CDCN
CWCN
Hanhelt
Arcadyan
SVA Arcadyan
Production and
marketing of
magnesium alloy
molding
Manufacturing and
sales of aluminum
alloy and magnesium
alloy products
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
R&D and
manufacturing of
electronic
communication
equipment
R&D and sales of
wireless network
products
431,808
(Note 2)
431,808
415,200
(Note 2)
(Note 3)
2,237,098
(Note 1)
2,237,098
2,214,400
(Note 2)
(Note 3)
-
-
-
-
22,144
(Note 2)
(Note 3)
-
276,800
(Note 1)
276,800
-
1,660,800
(Note 2)
317,102
498,240
(Note 2)
346,000
747,360
(Note 1)
608,960
160,544
(Note 1)
160,544
1,356,320
(Note 1)
525,920
55,360
(Note 1)
55,360
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
431,808
1,692,951
100% 1,692,951
2,235,113
-
1,692,304
100% 1,692,304
2,202,258
2,237,098
578,634
100%
578,634
4,503,395
-
-
578,669
100%
578,669
4,475,331
(51)
100%
(51)
22,152
276,800
330,312
100%
330,312
2,675,803
2,287,115
218,835
37%
80,137
5,443,063
317,102
(222,019)
37%
(81,303)
726,504
346,000
73,960
100%
73,960
335,779
608,960
(40,952)
100%
(40,952)
(930,657)
160,544
1,737
100%
1,737
87,829
525,920
373,471
100%
373,471
816,200
55,360
(476)
100%
(476)
2,380
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224,208
(Note 1)
509,866
-
(Note 7)
138,400
(Note 9)
371,466
6,442
100%
6,442
28,344
(Continued)
Compal Precision
Module (Jiangsu) Co.,
Ltd.
Manufacturing and
selling of magnesium
alloy injection molding
11,625,600
(Note 2)
2,287,115
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:307)(cid:306)
Table 11 Information on investment in Mainland China:
(December 31, 2021)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2021
304,784
(Note 8)
31,832
Total amount of
paid-in capital
344,616
Method of
investment
(Note 1)
92,728
(Note 1(cid:739)
10)
1,107,200
(Note 1)
1,101,747
Name of
investee
CNC
THAC
HengHao
HengHao
Optoelectronic
Technology (Kunshan)
Co., Ltd.
(“HengHao Kunshan”)
Main businesses and
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
415,200
(Note 2)
179,893
-
(Note 12)
(ii) Limitation on investment in Mainland China:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2021
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
304,784
186,372
100%
186,372
Accumulated
remittance of
earnings in
current
period
-
Book value
1,045,972
Investment flows
Outflow
-
Inflow
-
-
-
31,832
(96,967)
100%
(96,967)
(76,950)
1,101,747
(477,802)
100%
(477,802)
(775,079)
179,893
1,687
100%
1,687
126,264
-
-
-
Names of
Company
The Company
Arcadyan
HengHao
Accumulated Investment in Mainland China
as of December 31, 2021
Investment Amounts Authorized by
Investment Commission of Ministry of
Economic Affairs
15,017,424
(US$542,537)
21,254,309 (US$767,858)
(In Thousands of USD)
Limitation on investment in Mainland China by
Investment Commission of Ministry of Economic
Affairs
(Note 6)
(Note 5)
708,082
1,297,417
(US$25,581)
(US$46,872)
708,082 (US$25,581)
1,297,417 (US$46,872)
7,593,661
(Note 13)
Note 1:
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Note 10:
Note 11:
Note 12:
Indirectly investment in Mainland China through companies registered in the third region.
Indirectly investment in Mainland China through an existing company registered in the third region.
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.
The investment income (loss) was determined based on the financial report audited by the CPAs.
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.
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.
Arcadyan paid US$18,420 thousand and acquired 100% shares of SVA Arcadyan from Accton Asia through Arcadyan Holding in 2010.
Arcadyan paid US$8,561 thousand and acquired 100% shares of CNC from Just through Arcadyan Holding in 2007.
SVA Arcadyan decreased its capital amounting to US$15,000 thousand to offset accumulated losses in March 2009, and returned its capital amounting to
US$5,000 thousand on April 7, 2021.
Arcadyan’s subsidiary, TTI, obtained the control over THAC with US$1,150 thousand on February 28, 2013 (the date of stock transferring).
The amounts in New Taiwan Dollars were translated at the exchange rates at the balance sheet date or the average exchange rate.
The Company had an accumulated investment amounting to US$7,350 thousand in the previous years. In the first half of 2014, HengHao
paid the Company and LG US$3,184 thousand and US$3,315 thousand, respectively, for organization restructure, to obtain 100%
ownership of Lucom.
Note 13:
The net equity of HengHao is negative at December 31, 2021.
(iii) Significant transactions:
For the year ended December 31, 2021, 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, 2021 and 2020
Address:
Telephone:
No.581 & 581-1, Ruiguang Rd., Neihu District, Taipei, Taiwan
(02)8797-8588
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
9～29
29～30
30～64
64～71
71
71
71
72
72～73
73～74、
85～96
74、
97～102
74、
103～105
74
74
75～84
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, 2021 and 2020, the statement of comprehensive income,
changes in equity and cash flows for the years ended December 31, 2021 and 2020, 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, 2021 and 2020, and its financial performance and its cash flows
for the years then ended December 31, 2021 and 2020, in accordance with the Regulations Governing the
Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial
Statements by Certified Public Accountants 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.
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.
3-1
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.
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.
3-2
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.
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 Kuan-Ying Kuo and Szu-
Chuan Chien.
KPMG
Taipei, Taiwan (Republic of China)
March 15, 2022
COMPAL ELECTRONICS, INC.
Balance Sheets
December 31, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars)
Assets
Current assets:
Cash and cash equivalents (note (6)(a))
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
1100
1170
1180
1200
1310
1470
1550
1510
1517
1600
1755
1780
1840
1990
December 31, 2021
Amount
%
December 31, 2020
Amount
%
$
8,279,979
1.9
7,666,366
2.0
273,369,033
61.1
218,292,177
56.1
2,695,685
3,265,442
0.6
0.7
11,127,880
2,846,497
2.9
0.7
60,958,417
13.6
55,792,348
14.3
345,547
0.1
657,805
0.2
348,914,103
78.0
296,383,073
76.2
88,992,850
19.9
83,957,849
21.6
222,303
-
158,769
-
3,508,097
2,484,963
1,347,259
431,936
1,118,220
328,483
0.8
0.6
0.3
0.1
0.2
0.1
2,881,121
2,604,893
1,290,125
436,548
1,102,654
0.8
0.7
0.3
0.1
0.3
136,119
-
98,434,111
22.0
92,568,078
23.8
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, 2021
Amount
%
December 31, 2020
Amount
%
$
78,967,920
17.7
55,991,680
14.4
1,032,191
119,540,795
91,494,937
10,470,766
4,071,326
357,794
1,069,335
1,555,967
15,675,000
0.2
26.7
20.5
2.4
0.9
0.1
0.2
0.3
3.5
828,978
100,825,221
87,802,452
9,229,539
2,786,226
0.2
25.9
22.6
2.4
0.7
202,113
-
690,513
1,253,890
8,855,440
0.2
0.3
2.3
324,236,031
72.5
268,466,052
69.0
8,625,000
950,327
991,342
716,131
469,118
11,751,918
1.9
0.2
0.2
0.2
0.1
2.6
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
335,987,949
75.1
282,118,646
72.5
44,071,466
6,724,856
9.8
1.5
44,071,466
11.3
8,342,813
2.1
69,651,940
15.6
62,566,181
16.1
(8,206,750)
(1.8)
(7,266,708)
(1.8)
(881,247)
(0.2)
(881,247)
(0.2)
111,360,265
24.9
106,832,505
27.5
Total assets
$
447,348,214
100.0
388,951,151
100.0
Total liabilities and equity
$
447,348,214
100.0
388,951,151
100.0
See accompanying notes to financial statements.
COMPAL ELECTRONICS, INC.
Statements of Comprehensive Income
For the years ended December 31, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Share)
5
2021
2020
Amount
%
Amount
%
4000
5000
5910
6100
6200
6300
7100
7020
7050
7190
7370
7900
7950
8300
8310
8311
8316
8330
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
8349
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))
$,171,613,858 100.0 991,279,270 100.0
97.7
,143,709,503
2.3
27,904,355
-
-
2.3
27,904,355
97.6 968,054,585
23,224,685
6,641
23,218,044
2.4
-
2.4
5,720,031
2,677,154
11,928,778
20,325,963
7,578,392
45,045
591,365
(692,890)
347,999
6,573,057
6,864,576
14,442,968
1,810,301
12,632,667
0.5
0.3
1.0
1.8
0.6
-
0.1
(0.1)
-
0.6
0.6
1.2
0.1
1.1
3,705,829
2,262,855
11,169,634
17,138,318
6,079,726
126,882
599,312
(704,218)
358,670
3,966,905
4,347,551
10,427,277
1,065,384
9,361,893
0.4
0.2
1.1
1.7
0.6
-
0.1
(0.1)
-
0.4
0.4
1.0
0.1
0.9
(46,186)
466,327
279,206
31,660
667,687
-
-
-
-
-
(57,224)
(116,466)
(14,409)
(2,818)
(185,281)
-
-
-
-
-
Components of other comprehensive income (loss) that will be reclassified to profit or loss
Exchange differences on translation of foreign financial statements
(1,791,462)
(0.1)
(3,073,441)
(0.3)
8360
8361
8380
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
8399
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
8300
8500
9750
9850
Other comprehensive income
Total comprehensive income
Earnings per share (note 6(q))
Basic earnings per share
Diluted earnings per share
See accompanying notes to financial statements.
(63,362)
-
(19,629)
-
-
(1,854,824)
(1,187,137)
$ 11,445,530
-
(0.1)
(0.1)
1.0
-
(3,093,070)
(3,278,351)
6,083,542
-
(0.3)
(0.3)
0.6
$
$
2.90
2.86
2.15
2.12
6
COMPAL ELECTRONICS, INC.
Statements of Changes in Equity
For the years ended December 31, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars)
Retained earnings
Balance at January 1, 2020
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
Balance at December 31, 2020
Profit for the year ended December 31, 2021
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
Ordinary
shares
$ 44,071,466
-
-
-
-
-
-
-
-
-
-
-
-
44,071,466
-
-
-
-
-
-
-
-
-
-
-
Capital
surplus
9,159,259
-
-
-
-
-
-
(881,429)
1,735
2,228
60,021
999
-
8,342,813
-
-
-
-
-
-
(1,762,859)
61,825
2,132
80,027
918
Legal
reserve
19,719,150
-
-
-
695,590
-
-
-
-
-
-
-
-
20,414,740
-
-
-
924,672
-
-
-
-
-
-
-
comprehensive income
Balance at December 31, 2021
-
$ 44,071,466
-
6,724,856
-
21,339,412
Special
reserve
7,467,831
-
-
-
-
(3,366,088)
-
-
-
-
-
-
-
4,101,743
-
-
-
-
3,164,965
-
-
-
-
-
-
-
7,266,708
Unappropriated
retained
earnings
30,539,623
9,361,893
(48,219)
9,313,674
(695,590)
3,366,088
(4,407,147)
(33,051)
(9,055)
-
-
-
Total
retained
earnings
57,726,604
9,361,893
(48,219)
9,313,674
-
-
(4,407,147)
-
(33,051)
(9,055)
-
-
(24,844)
38,049,698
12,632,667
(40,067)
12,592,600
(24,844)
62,566,181
12,632,667
(40,067)
12,592,600
(924,672)
(3,164,965)
(5,288,576)
(25,946)
(49,878)
-
-
-
-
-
(5,288,576)
-
(25,946)
(49,878)
-
-
(142,441)
41,045,820
(142,441)
69,651,940
Exchange
differences on
translation of
foreign
financial
statements
(3,794,980)
-
(3,093,997)
(3,093,997)
-
-
-
-
-
-
-
-
-
(6,888,977)
-
(1,855,728)
(1,855,728)
-
-
-
-
-
-
-
-
-
(8,744,705)
See accompanying notes to financial statements.
Total other equity interest
Unrealized
gains
(losses) on
financial
assets
measured at
fair value
through other
comprehensive
income
Others
Total other
equity
interest
(306,763)
-
(137,062)
(137,062)
-
-
-
-
-
-
33,051
8,978
24,844
(376,952)
-
707,754
707,754
-
-
-
-
-
-
14,709
49,878
142,441
537,830
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,706)
(4,103,449)
-
(3,230,132)
(3,230,132)
927
927
-
-
-
-
33,051
8,978
-
-
(779)
904
904
24,844
(7,266,708)
-
(1,147,070)
(1,147,070)
-
-
-
-
14,709
49,878
-
-
142,441
(8,206,750)
125
Treasury
shares
Total equity
(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
12,632,667
(1,187,137)
11,445,530
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,288,576)
(1,762,859)
50,588
2,132
80,027
918
-
(881,247) 111,360,265
COMPAL ELECTRONICS, INC.
Statements of Cash Flows
For the years ended December 31, 2021 and 2020
(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 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:
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 and liquidation 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
2021
2020
$
14,442,968
10,427,277
1,351,021
(2,005)
(8,535)
692,890
(45,045)
(65,011)
(6,573,057)
-
762
(4,648,980)
-
(46,645,753)
(456,496)
(5,166,069)
367,618
(51,900,700)
22,408,059
1,208,152
302,077
203,213
378,822
(17,109)
24,483,214
(27,417,486)
(32,066,466)
(17,623,498)
43,724
720,292
(658,932)
(451,858)
(17,970,272)
(224,151)
-
(1,226,820)
-
13,725
(296,453)
382,796
(480,815)
(224,104)
(2,055,822)
22,976,240
49,654,536
(44,459,976)
(479,608)
(7,051,435)
(50)
20,639,707
613,613
7,666,366
8,279,979
$
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
COMPAL ELECTRONICS, INC.
Notes to the Financial Statements
For the years ended December 31, 2021 and 2020
(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 15, 2022.
(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. which have already been adopted.
The Company has initially adopted the following new amendments, which do not have a significant
impact on its consolidated financial statements, from January 1, 2021:
● 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”
● Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(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, 2022, would not have a significant impact on its financial statements:
● 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”
(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
to
aim
amendments
liabilities with
promote
The
consistency in applying the requirements
by helping companies determine whether,
in the statement of balance sheet, debt and
uncertain
other
settlement date should be classified as
current (due or potentially due to be settled
within one year) or non-current. The
include
the
amendments
classification
for debt a
requirements
company might settle by converting it into
equity.
clarifying
an
The Company is evaluating the impact of its initial adoption of the abovementioned standards or
interpretations on its consolidated 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 1 “Disclosure of Accounting Policies”
● Amendments to IAS 8 “Definition of Accounting Estimates”
● Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single
Transaction”
(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)
2)
Buildings: 35~50 years
Building improvement: 2~12 years
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
21
3)
4)
Research equipment: 3~5 years
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
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.
(i) 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.
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
22
－ 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.
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.
(ii) 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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
23
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)
4)
5)
6)
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.
How the intangible asset will generate probable future economic benefits.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
24
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)
2)
Patents: the shorter of contract period and estimated useful lives
Computer software: 1~6 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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
25
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
26
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
27
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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
28
(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:
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
29
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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
30
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.
(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, 2021
December
31, 2020
$
1,741
8,210,472
67,766
-
$
8,279,979
1,700
7,578,068
76,598
10,000
7,666,366
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
Stock unlisted in domestic markets
Fund in foreign market
Total
December
31, 2021
December
31, 2020
$
$
137,540
84,763
222,303
100,190
58,579
158,769
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
31
For the market risk related to the financial instruments, please refer to note (6)(u).
As of December 31, 2021 and 2020, 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, 2021
December
31, 2020
$
2,016,402
1,520,779
695,728
614,907
181,060
491,243
801,238
67,861
$
3,508,097
2,881,121
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.
The liquidation procedures of Horizon Ventures Fund I, LP, measured at fair value through other
comprehensive income by the Company, had been completed in January 2021. Proceed from the
liquidation amounted to $104, resulting in a cumulative loss of $142,441, which was reclassified
from other comprehensive income to retained earnings.
For the year ended December 31, 2020, the Company has sold all of its shareholdings, 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 $25,156, resulting in a cumulative loss
of $24,844, which was reclassified from other comprehensive income to retained earnings.
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, 2021 and 2020, will be $175,405 and $144,056, 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, 2021 and 2020, 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
32
(d) Notes and accounts receivable
Accounts receivable – measured at amortized cost
Accounts receivable – fair value through other comprehensive
income
Less: allowance for uncollectible accounts
December
31, 2021
$ 247,202,299
December
31, 2020
194,723,552
32,498,305
38,331,299
279,700,604
233,054,851
(3,632,789)
(3,634,794)
allowance for sales returns and discounts
(3,097)
-
Notes and accounts receivable
Notes and accounts receivable – related parties
$ 276,064,718
229,420,057
$ 273,369,033
218,292,177
$
2,695,685
11,127,880
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, 2021
Carrying
amount of
notes and
accounts
receivable
$
269,018,050
7,058,817
3,623,737
$
279,700,604
Weighted-
average
ECL rate
0%
0.128%
100%
Credit rating
Level A
Level B
Level C
Lifetime ECLs
-
9,052
3,623,737
3,632,789
Credit-
impaired
No
No
Yes
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
33
December 31, 2020
Carrying
amount of
notes and
accounts
receivable
$
224,404,852
Weighted-
average
ECL rate
0%
5,026,262
3,623,737
0.22%
100%
$
233,054,851
Credit rating
Level A
Level B
Level C
Lifetime ECLs
-
11,057
3,623,737
3,634,794
Credit-
impaired
No
No
Yes
The aging analysis of notes and accounts receivable, was determined as follows:
Overdue 1 to 180 days
December
31, 2021
December
31, 2020
$
264,733
1,364,958
The movement in the allowance for notes and accounts receivable was as follow:
Balance at January 1
Impairment losses recognized (reversed)
Balance at December 31
2021
2020
3,634,794
3,634,190
(2,005)
604
3,632,789
3,634,794
$
$
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, 2021 and 2020, except for the amount used under the actual sales amount in accordance with
certain agreements, the factoring amount granted by the banks were USD 1,600,000 thousands.
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, 2021 and 2020, accounts receivable factored were recovered.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
34
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, 2021 and 2020, accounts receivable
factored were recovered.
The details of the factored accounts receivable at the reporting date were as follows:
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 33,585,262
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 42,187,597
December 31, 2021
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivables
Amount
Collateral
derecognized Interest rate
-
33,585,262
-
-
33,585,262 0.47%~0.86%
December 31, 2020
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivables
Amount
Collateral
derecognized Interest rate
-
42,187,597
-
-
42,187,597 0.58%~0.93%
As of December 31, 2021 and 2020, 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, 2021
December
31, 2020
$
$
1,608,560
137,717
1,519,165
3,265,442
1,644,000
141,149
1,061,348
2,846,497
As of December 31, 2021 and 2020, none of other receivables were past due.
(f)
Inventories
Finished goods
Work in progress
Raw materials
December
31, 2021
$
$
7,535,072
1,188,814
52,234,531
60,958,417
December
31, 2020
11,718,417
682,167
43,391,764
55,792,348
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
35
(i) During the years ended December 31, 2021 and 2020, inventory cost recognized as cost of
sales amounted to $1,143,709,503 and $968,054,585, respectively.
(ii) The loss due to the write-down of inventories to net realizable value amounted $1,795,897 and
$35,077 for the years ended December 31, 2021 and 2020, respectively.
(iii) As of December 31, 2021 and 2020, 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
December
31, 2021
84,948,309
$
December
31, 2020
79,719,654
3,345,350
2,877,977
88,293,659
82,597,631
Plus: Accounts receivable and other receivables-related parties
240,400
581,227
Credit balance of investment in equity method (other non-
current liability)
Less: unrealized profits or losses
468,948
(10,157)
789,148
(10,157)
$
88,992,850
83,957,849
(i)
Subsidiaries
Please refer to the consolidated financial statement for the year ended December 31, 2021.
(ii) Associates
1)
The fair value of the shares of listed company based on the closing price was as follow:
Allied Circuit Co., Ltd. (“Allied Circuit”)
Avalue Technology Inc. (“Avalue”)
December
31, 2021
December
31, 2020
1,686,183
1,229,085
849,180
828,286
2,535,363
2,057,371
$
$
2)
The Company’s share of the net gain (loss) of associates was as follows:
The Company’s share of the gain of associates
2021
$
471,621
2020
258,376
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
36
3)
The Company’ s financial information for investments accounted for using the equity
method that are individually immaterial was as follows:
December
31, 2021
December
31, 2020
Carrying amount of individually immaterial associates
$
3,345,350
2,877,977
2021
2020
The Company’s share of the net income (loss) of
associates:
Profit from continuing operations
Other comprehensive income (loss)
Total comprehensive income (loss)
$
$
471,621
160,378
631,999
258,376
107,656
366,032
4)
For the year ended December 31, 2020, the Company had sold part of its shares held in
Avalue, with a consideration (net of costs of disposal) amounting to $8,306. The
transactions have been completed and the price has been fully recovered, wherein the
Company recognized gain of $3,914, which were accounted for as other gain and loss.
(iii) As of December 31, 2021 and 2020, 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 38 thousand and 45 thousand new
shares because of its employees’ exercised stock options in 2021 and 2020, respectively,
resulting in a decrease in the ownership of the Company and its subsidiaries in CBN by
0.02% and 0.03%, respectively.
2)
Issuance of new shares for cash of subsidiaries
The Company purchased newly issued shares of HippoScreen amounting to $70,000 at a
percentage different from its existing ownership percentage in January, 2021, resulting in
an increase in the ownership of the Company in HippoScreen by 21%.
3)
Issuance of subsidiaries’ restricted shares
CBN issued 1,500 thousand restricted shares in 2021, resulting in a decrease of the
ownership of the Company and its subsidiaries in CBN by 0.95%.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
37
4)
Cancellation of subsidiaries’ restricted shares and conversion of convertible bonds
Arcadyan canceled 53 and 126 restricted shares in the years ended December 31, 2021
and 2020. Whereas, Arcadyan issued 8,136 new shares due to the conversion of
convertible bonds during 2021. These two events, respectively, resulted in a decrease of
1.30% and an increase of 0.01% the ownership of the Company and its subsidiaries in
Arcadyan in the years ended December 31, 2021 and 2020.
5)
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
Retained earnings
2021
2020
61,825
(11,237)
50,588
$
1,735
-
1,735
(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, 2021 and 2020, were as follows:
Cost:
Balance on January 1, 2021
Additions
Disposals and derecognitions
Reclassifications
Balance on December 31, 2021
Balance on January 1, 2020
Additions
Disposals and derecognitions
Reclassifications
Balance on December 31, 2020
Depreciation and impairments loss:
Balance on January 1, 2021
Depreciation for the period
Disposals and derecognitions
Balance on December 31, 2021
Buildings
and building
improvement
Other
equipment
Land
Under
construction
and
prepayment
for purchase of
equipment
Total
$
1,047,797
2,518,500
2,725,560
9,556
6,301,413
-
-
-
37,898
205,451
53,104
296,453
-
-
(176,143)
-
(176,143)
35,184
(35,184)
-
$
$
1,047,797
2,556,398
2,790,052
27,476
6,421,723
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
$
$
-
-
-
-
1,554,775
2,141,745
127,579
265,151
-
(152,490)
1,682,354
2,254,406
-
-
-
-
3,696,520
392,730
(152,490)
3,936,760
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
38
Balance on January 1, 2020
Depreciation for the period
Disposals and derecognitions
Balance on December 31, 2020
Carrying amounts:
Balance on December 31, 2021
Balance on January 1, 2020
Balance on December 31, 2020
Buildings
and building
improvement
1,443,734
Other
equipment
1,944,023
Under
construction
and
prepayment
for purchase of
equipment
-
122,763
241,067
(11,722)
(43,345)
1,554,775
2,141,745
-
-
-
Land
-
-
-
-
Total
3,387,757
363,830
(55,067)
3,696,520
1,047,797
1,047,797
1,047,797
874,044
946,541
963,725
535,646
438,055
583,815
27,476
2,484,963
188,245
2,620,638
9,556
2,604,893
$
$
$
$
$
As of December 31, 2021 and 2020, the Company did not provide property, plant and equipment as
collateral for its borrowing.
(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, 2021
Additions
Deductions
Balance on December 31, 2021
Balance on January 1, 2020
Additional
Deductions
Balance on December 31, 2020
Depreciation:
Balance on January 1, 2021
Depreciation for the period
Deductions
Balance on December 31, 2021
Balance on January 1, 2020
Depreciation for the period
Deductions
Balance on December 31, 2020
$
$
$
$
$
$
$
$
1,983,275
529,032
(248,416)
2,263,891
1,687,346
369,422
(73,493)
1,983,275
711,010
463,549
(247,017)
927,542
333,271
450,829
(73,090)
711,010
45,174
2,365
(19,165)
28,374
50,120
2,175
(7,121)
45,174
27,314
9,315
(19,165)
17,464
16,580
17,850
(7,116)
27,314
2,028,449
531,397
(267,581)
2,292,265
1,737,466
371,597
(80,614)
2,028,449
738,324
472,864
(266,182)
945,006
349,851
468,679
(80,206)
738,324
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
39
Carrying amount:
Balance on December 31, 2021
Balance on January 1, 2020
Balance on December 31, 2020
(k)
Short-term borrowings
Buildings
Vehicles
Total
$
1,336,349
1,354,075
1,272,265
10,910
33,540
17,860
1,347,259
1,387,615
1,290,125
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, 2021
78,967,920
December 31,
2020
55,991,680
48,648,000
46,248,000
0.42%~0.78% 0.48%~1.00%
$
$
For information on the Company’s interest risk, foreign currency risk and liquidity risk, please refer
to note (6)(u).
(l)
Long-term borrowings
The details of long-term borrowings were as follows:
December 31, 2021
Currency
TWD
Range of annual
interest rates
0.62%~0.98%
Maturity year
2022~2024
Unsecured bank loans
Less: current portion
Total
Unused credit line for
long-term borrowings
Unsecured bank loans
December 31, 2020
Currency
TWD
Range of annual
interest rates
0.66%~0.98%
Maturity year
2021~2023
Unsecured bank loans
USD
0.69%~0.92%
2021~2022
Less: current portion
Total
Unused credit line for
long-term borrowings
Amount
24,300,000
(15,675,000)
8,625,000
11,803,000
Amount
11,900,000
7,205,440
(8,855,440)
10,250,000
15,290,000
$
$
$
$
$
$
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
(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, 2021
$
$
357,794
991,342
December
31, 2020
202,113
1,096,415
Interest on lease liabilities
Expenses relating to leases of low-value assets or short-term
leases
2021
2020
16,915
17,077
9,221
5,843
$
$
The amounts recognized in the statement of cash flows for the Company was as follows:
Total cash outflow for leases
(i)
Building leases
2021
2020
$
505,744
494,013
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 3~5 years.
The Company also leases some machinery and office equipment with contract terms of 1~5
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, 2021
(1,318,160)
December
31, 2020
(1,286,459)
602,029
599,405
(716,131)
(687,054)
$
$
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
41
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.
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 $604,481 (excluding the ending balance of interest receivable) as of
December 31, 2021. 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
$
(1,286,459)
2021
Current service costs and interest
Remeasurements of net benefit liabilities
Benefit paid by the plan
(10,148)
(54,331)
32,778
2020
(1,270,206)
(15,945)
(77,143)
76,835
Defined benefit obligations on December 31
$
(1,318,160)
(1,286,459)
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:
2021
2020
Fair value of plan assets on January 1
$
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
$
599,405
2,857
8,145
24,400
(32,778)
602,029
626,953
5,455
19,919
23,913
(76,835)
599,405
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
4)
Expenses recognized in profit or loss
The expenses recognized in profit or loss for the Company were as follows:
2021
2020
Current service cost
Net interest on the net defined benefit liability
(asset)
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
$
$
$
$
3,920
3,371
7,291
257
352
1,831
4,851
7,291
42
4,811
5,679
10,490
383
504
2,611
6,992
10,490
5)
Actuarial assumptions
The following were the Company’s principal actuarial assumptions at the reporting date:
Discount rate
Future salary increase rate
December 31,
2021
0.80%
December 31,
2020
0.50%
3.00%
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 $25,860.
The weighted-average lifetime of the defined benefit plan is 9.0 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, 2021
Discount rate
Future salary increasing rate
December 31, 2020
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(28,902)
29,212
(30,316)
30,583
29,922
(28,374)
31,422
(29,675)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
43
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 $391,223 and $364,251 for the years ended December 31, 2021 and 2020, 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, 2021 and 2020, was as
follows:
Current tax expense
Recognized during the period
$
2,262,124
1,319,010
2021
2020
Undistributed earnings additional tax
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary differences
Income tax expense
-
16,836
(525,167)
(273,959)
1,736,957
1,061,887
73,344
73,344
3,497
3,497
$
1,810,301
1,065,384
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
44
2)
The amount of income tax recognized in other comprehensive income for the years ended
December 31, 2021 and 2020, was as follows:
Items that will not be reclassified subsequently to profit
or loss:
Remeasurement of defined benefit obligation
Unrealized gains (losses) on equity instruments at fair
value through other comprehensive income
2021
2020
$
$
(9,237)
(11,445)
40,897
31,660
8,627
(2,818)
3)
The income tax expense that was reconciled between the actual income tax expense and
profit before tax for the years ended December 31, 2021 and 2020, 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
2021
14,442,968
2020
10,427,277
2,888,594
2,085,455
$
$
-
16,836
(84,031)
(65,440)
(525,167)
(915,638)
511,983
(169,069)
(60,000)
(273,959)
(873,487)
339,608
Income tax expense
$
1,810,301
1,065,384
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2021 and 2020 were as follows:
Exchange
differences on
translation
Refund
liabilities
Contract
liabilities
Unrealized
exchange
losses, net
Others
Total
Deferred tax assets:
Balance on January 1, 2021
$
9,823
Recognized in profit or loss
Recognized in other
comprehensive income
Balance on December 31, 2021 $
Balance on January 1, 2020
$
Recognized in profit or loss
Recognized in other
comprehensive income
-
-
-
-
9,823
9,823
134,880
60,416
-
195,296
120,603
14,277
49,536
40,462
588,025
(193,189)
320,390
98,640
1,102,654
6,329
-
89,998
59,429
(9,893)
-
394,836
670,265
(82,240)
9,237
428,267
306,688
2,257
9,237
1,118,220
1,166,808
(75,599)
Balance on December 31, 2020 $
9,823
134,880
49,536
588,025
-
-
-
11,445
320,390
11,445
1,102,654
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
45
Deferred tax liabilities:
Balance on January 1, 2021
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2021
Balance on January 1, 2020
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2020
Unrealized
exchange
gains, net
Others
Total
$
$
$
$
(424,990)
(404,767)
(829,757)
(79,673)
-
-
(504,663)
(497,092)
72,102
-
(40,897)
(445,664)
(396,140)
-
(8,627)
(79,673)
(40,897)
(950,327)
(893,232)
72,102
(8,627)
(424,990)
(404,767)
(829,757)
(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, 2021
December
31, 2020
$
125,258
388,424
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, 2021 and 2020, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $2,335,023 and
$1,856,500, respectively.
As of December 31, 2021 and 2020, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $58,601,692
and $54,205,119, respectively.
(v) Examination and approval
The Company’s tax returns for the year through 2019 were assessed by the tax authorities.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
46
(p) Capital and other equities
(i) Ordinary shares
As of December 31, 2021 and 2020, 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, 2021
December
31, 2020
$
3,660,119
2,621,933
5,422,060
2,541,906
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
122,675
36,766
60,850
for using equity method
283,363
281,231
$
6,724,856
8,342,813
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 Board of Directors’ meeting respectively held on March 26, 2021 and March
30, 2020, approved to distribute cash of $1,762,859 and $881,429 (representing 0.4 and 0.2
New Taiwan dollars per share), by using capital surplus.
The Company’s Board of Directors’ meeting held on March 15, 2022, approved to distribute
cash of $1,762,859 (representing 0.4 New Taiwan dollars per share), by using capital surplus.
The related information can be accessed through the Market Observation Post System website.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
47
(iii) Retained earnings
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.
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
48
2)
Special reverse
A portion of current period earnings and undistributed prior period earnings shall be
reclassified as a special earnings reserve during earnings distribution. The amount to be
reclassified should equal to the current-period total net reduction of other shareholders’
equity. For the year 2019 earnings distribution in 2020, the amount to be reclassified to
special reserve shall be a portion of current-period earnings and undistributed prior-
period earnings. As for the year 2020 earnings distribution in 2021, the amount to be
reclassified to special reserve shall be a portion of current-period earnings plus other line
items in the retained earnings movements and undistributed prior-period earnings. 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 2020 and 2019 were approved in the meeting of the
Board of Directors held on March 26, 2021 and March 30, 2020, respectively. The
relevant information was as follows:
2020
2019
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed to
common shareholders
$
1.2
5,288,576
1.0
4,407,147
Distribution for the earnings of 2021 was approved in the meeting of the Board of
Directors held on March 15, 2022. The relevant information was as follows:
2021
Amount
per share
Total
amount
Cash dividends distributed to common shareholders from
the unappropriated earnings
$
1.6
7,051,435
The related information of the earnings distribution for the year ended December 31,
2021, 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, 2021 and 2020. As of December 31, 2021, 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
24.20 and 20.70 New Taiwan dollars per share as of December 31, 2021 and 2020,
respectively.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
49
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, 2021
$
(6,888,977)
(376,952)
(779)
(7,266,708)
The Company
Subsidiaries
Associates
Balance on December 31, 2021
Balance on January 1, 2020
$
$
The Company
Subsidiaries
Associates
(1,791,462)
(38,894)
(25,372)
(8,744,705)
567,871
160,972
185,939
537,830
(3,794,980)
(306,763)
(3,073,441)
(100,249)
(182,054)
161,498
75,529
(45,469)
-
-
-
-
904
(1,223,591)
122,982
160,567
125
(8,206,750)
(1,706)
(4,103,449)
(3,173,690)
927
(105,598)
116,029
Balance on December 31, 2020
$
(6,888,977)
(376,952)
(779)
(7,266,708)
(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
$
12,632,667
9,361,893
Weighted-average number of outstanding ordinary shares
(in thousands)
4,357,130
4,357,130
2021
2020
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
50
Diluted earnings per share:
Profit attributable to ordinary shareholders of the Company
(after adjustment of potential diluted ordinary shares)
$
12,632,667
9,361,893
2021
2020
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)
4,357,130
4,357,130
65,517
57,482
Weighted-average number of ordinary shares (after adjustment of
potential diluted ordinary shares) (in thousands)
4,422,647
4,414,612
(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
2021
IT Product
Segment
475,525,614
$
2020
IT Product
Segment
438,228,844
152,490,382
120,250,527
86,279,648
83,664,387
49,815,031
45,763,811
407,503,183
303,371,701
$ 1,171,613,858
991,279,270
$ 1,170,311,198
990,202,030
1,302,660
1,077,240
$ 1,171,613,858
991,279,270
Notes and accounts receivable (including
related parties)
Less: allowance for impairment
Less: credit balances of investments in
equity method
Total
Contract liabilities
December
31, 2021
December
31, 2020
January 1,
2020
$ 279,700,604
(3,632,789)
233,054,851
(3,634,794)
181,654,052
(3,634,190)
(3,097)
$ 276,064,718
1,032,191
$
-
229,420,057
828,978
-
178,019,862
877,822
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
51
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, 2021 and 2020 that was
included in the balances of contract liability at the beginning of the period were $828,978 and
$877,822, 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.
The Company accrued and recognized its employee compensation of $1,350,062 and $974,694,
respectively, and directors’ compensation of $71,370 and $51,541 for the years ended December 31,
2021 and 2020, 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 2021 and 2020.
There is no differences between the amount estimated and recognized in the financial statements in
2020. The related information can be accessed through the Market observation Post System website.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
52
(t) Non-operating income and expenses
(i)
Interest income
The interest income for the years ended December 31, 2021 and 2020, were as follows:
Interest income from bank deposits
Interest income from financial assets measured at
amortized cost
2021
18,611
26,434
45,045
$
$
2020
80,823
46,059
126,882
(ii) Other income
The other income for the years ended December 31, 2021 and 2020, were as follows:
Dividend revenue
Sale of expensed assets
Other revenue
(iii) Other gains and losses
2021
2020
$
$
65,011
15,225
267,763
347,999
56,780
85,268
216,622
358,670
The other gains and losses for the years ended December 31, 2021 and 2020, 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
2021
-
2020
3,914
14,212
577,882
(729)
591,365
(9,013)
604,339
72
599,312
$
$
(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
53
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, 2021
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities–current and
non-current
December 31, 2020
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities–current and
non-current
$ 103,267,920
211,035,732
10,470,766
(103,267,920)
(211,035,732)
(10,470,766)
(94,642,920)
(211,035,732)
(10,470,766)
(6,125,000)
(2,500,000)
-
-
-
-
1,349,136
$ 326,123,554
(1,389,967)
(326,164,385)
(372,578)
(316,521,996)
(337,572)
(6,462,572)
(679,817)
(3,179,817)
$
75,097,120
188,627,673
9,229,539
(75,097,120)
(188,627,673)
(9,229,539)
(64,847,120)
(188,627,673)
(9,229,539)
(5,125,000)
(5,125,000)
-
-
-
-
1,298,528
$ 274,252,860
(1,347,574)
(274,301,906)
(217,649)
(262,921,981)
(348,353)
(5,473,353)
(781,572)
(5,906,572)
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
54
(iii) Currency risk
1)
Exposure to foreign currency risk
The Company’s significant exposure to foreign currency risk was as follows:
December 31, 2021
Exchange
rate
Foreign
currency
TWD
December 31, 2020
Exchange
rate
Foreign
currency
TWD
$10,410,005
27.68
288,148,938
8,521,135
28.48
242,681,925
842,184
0.8261
695,728
516,989
0.9502
491,243
10,373,943
27.68
287,150,742
9,056,682
28.48
257,934,303
Financial assets
Monetary items
USD to TWD
Non-monetary items
THB to TWD
Financial liabilities
Monetary items
USD to TWD
2)
Sensitivity analysis
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,
2021 and 2020, 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, 2021
December
31, 2020
$
49,910
(762,619)
(49,910)
762,619
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, 2021
and 2020, the foreign exchange gains, including both realized and unrealized, amounted
to $577,882 and $604,339, 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
55
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, 2021 and 2020, 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
2021
2020
$
(18,994)
18,994
(5,566)
5,566
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, 2021
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
$
222,303
-
Stocks listed on domestic markets
2,016,402
2,016,402
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
695,728
614,907
181,060
32,498,305
36,006,402
695,728
-
-
-
-
-
-
-
-
222,303
222,303
-
-
614,907
181,060
2,016,402
695,728
614,907
181,060
32,498,305
-
32,498,305
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
56
December 31, 2021
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
Refundable deposits -current and non-
current
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
8,279,979
240,870,728
2,695,685
3,265,442
383,843
255,495,677
$ 291,724,382
$ 78,967,920
119,540,795
91,494,937
10,470,766
1,349,136
15,675,000
8,625,000
170
$ 326,123,724
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
$
158,769
-
Stocks listed on domestic markets
1,520,779
1,520,779
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
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
Refundable 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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
58
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, 2021
and 2020.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
59
5) Changes in level 3
The change in level 3 at fair value in the years ended December 31, 2021 and 2020, were
as follow:
Financial assets at
fair value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Total
158,769
869,099
1,027,868
$
$
$
Balance on January 1, 2021
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Proceeds of capital reduction of investment
Balance on December 31, 2021
Balance on January 1, 2020
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds of capital reduction of investment
8,535
54,999
222,303
71,097
10,997
76,675
-
-
-
-
-
Balance on December 31, 2020
$
158,769
-
-
(233,782)
169,152
(8,502)
795,967
956,718
(65,813)
7,578
(25,156)
(4,228)
869,099
8,535
(233,782)
224,151
(8,502)
1,018,270
1,027,815
10,997
(65,813)
84,253
(25,156)
(4,228)
1,027,868
For the years ended December 31, 2021 and 2020, 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”)
In other comprehensive income (as “unrealized gains
and losses from equity instruments at fair value
through other comprehensive income”)
$
$
2021
2020
8,535
10,997
(233,651)
(46,709)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
60
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)
Financial assets at fair
value through other
comprehensive
income
Financial assets at fair
value through profit
or loss
Net asset value
method
Net asset value
method
Significant
unobservable inputs
Price-Book ratio
multiples (3.56~11.62
and 1.72~7.9,
respectively, on
December 31, 2021 and
2020)
Lack-of-Marketability
discount rate
(40%~85% and
35%~85%, respectively,
on December 31, 2021
and 2020)
Net asset value
Inter-relationships
between significant
unobservable inputs
and fair value
The higher the
multiple is, the
higher the fair value
will be.
The higher the Lack-
of-Marketability
discount rate is, the
lower the fair value
will be.
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:
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
61
December 31, 2021
Financial assets at
fair value through
other comprehensive
income
December 31, 2020
Financial assets at
fair value through
other comprehensive
income
Input
Price-Book ratio
multiples
Lack-of-Marketability
discount rate
Price-Book ratio
multiples
Lack-of-Marketability
discount rate
Move up
or down
Other comprehensive income
Unfavorable
change
Favorable
change
5%
5%
5%
5%
$
$
$
$
14,252
12,651
750
909
35,945
35,279
4,523
4,567
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
62
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.
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,
2021 and 2020, the guarantees provide to the subsidiaries amounted to $413,781 and
$214,797, 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, 2021 and 2020.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
63
(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.
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, 2021 and 2020, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December 31,
2021
$ 335,987,949
December
31, 2020
282,118,646
$ 447,348,214
388,951,151
75%
73%
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
64
As of December 31, 2021, 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, 2021 and 2020 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
Deposits received
Total liabilities from financing
activities
Short-term borrowings
Long-term borrowings
Lease liabilities
Deposits received
Total liabilities from financing
activities
$
January 1,
2021
55,991,680
19,105,440
1,298,528
220
Cash flow
22,976,240
5,194,560
(479,608)
(50)
Other non-
cash
changes
-
-
530,216
-
December
31, 2021
78,967,920
24,300,000
1,349,136
170
$
76,395,868
27,691,142
530,216
104,617,226
$
January 1,
2020
39,363,800
25,650,000
1,398,432
220
Cash flow
16,627,880
(6,544,560)
(471,093)
-
Other non-
cash
changes
-
-
371,189
-
December
31, 2020
55,991,680
19,105,440
1,298,528
220
$
66,412,452
9,612,227
371,189
76,395,868
(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”)
Arcadyan
Relationship with the
Company
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
65
Name of related party
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”)
Core Profit Holdings Limited (“CORE”)
Compalead Electronics B.V. (“CPE”)
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
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”)
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”)
Compal Digital Technology (Kunshan) Co., Ltd. (“CDT”)
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
66
Name of related party
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”)
Compal Digital Communication (Nanjing) Co., Ltd. (“CDCN”)
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
Compal Wireless Communication (Nanjing) Co., Ltd. (“CWCN”)
The Company’s subsidiary
Hanhelt Communication (Nanjing) Co., Ltd. (“Hanhelt”)
Giant Rank Trading Ltd. (“GIA”)
Arcadyan Technology N.A. Corp. (“Arcadyan USA”)
Arcadyan Germany Technology GmbH (“Arcadyan Germany”)
Arcadyan Technology Corporation Korea (“Arcadyan Korea”)
Arcadyan India Private Limited (“Arcadyan India”)
Arcadyan Holding (BVI) Corp. (“Arcadyan Holding”)
Arcadyan do Brasil Ltda. (“Arcadyan Brasil”)
Arcadyan Technology Limited (“Arcadyan UK”)
Arcadyan Technology Australia Pty Ltd. (“Arcadyan AU”)
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 Corporation (Russia), LLC.(“Arcadyan RU”)
The Company’s subsidiary
Zhi-Bao Technology Inc. (“Zhi-Bao”)
Tatung Technology Inc. (“TTI”)
AcBel Telecom Inc. (“AcBel Telecom”)
CBN
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
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”)
Quest International Group Co., Ltd. (“Quest”)
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
Exquisite Electronic Co., Ltd. (“Exquisite”)
Tatung Home Appliances (Wujiang) Co., Ltd. (“THAC”)
Tatung Technology of Japan Co., Ltd. (“TTJC”)
Intelligent Universal Enterprise Ltd. (“IUE”)
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
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 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”)
Hippo Screen Neurotech Co., Ltd. (“Hippo Screen”)
Shennona Co., Ltd. (“Shennona TW”)
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
The Company’s subsidiary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
68
Name of related party
Aco Smartcare Co., Ltd. (“Aco Smartcare”)
Starmems Semiconductor Corp. (“Starmems Semiconductor”)
Relationship with the
Company
The Company’s subsidiary
The Company’s subsidiary
Kinpo&Compal Group Assets Development Corporation (“Kinpo&Compal
The Company’s subsidiary
Assets Development”)
Compal Electronica DA Amazonia LTDA (“CEA”)
Compal Wise Electronic (Vietnam) Co., Ltd. (“CWV”)
CGS Technology (Poland) Sp. z o.o. (“CGSP”)
Compal USA (Indiana), Inc. (“CIN”)
AcBel Polytech Inc. (AcBel) and its subsidiaries (“AcBel”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Chairman of the Board is the
first degree of kinship of the
Chairman of the Company
Cal-Comp Electronics (Thailand) Public Company Limited (“Cal-Comp”)
The same Chairman of the Board
Kinpo Electronics, Inc. (“Kinpo”)
Avalue
Crownpo Technology Inc. (“Crownpo”)
Kinpo Group Management Consultant Company (“Kinpo Group
Management”)
Allied Circuit
LIZ Electronics (Kunshan) Co., Ltd. (“LIZK”)
LIZ Electronics (Nantong) Co., Ltd. (“LIZN”)
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”)
Cal-Comp Electronics (USA) Co., Ltd. (CCUS)
(b) Transactions with key management personnel
Key management personnel remunerations comprised:
Short-term employee benefits
Post-employment benefits
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
An associate
A joint venture company
The chairman of the board of
directors of its ultimate parent
company is the same as that of
the Company
2021
598,395
5,643
604,038
$
$
2020
516,197
6,007
522,204
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
69
There are no termination benefits and other long-term benefits.
(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
2021
1,777,777
$
190
30,429
2020
1,170,456
190
476,501
$
1,808,396
1,647,147
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
2021
2020
$ 175,003,681
145,525,596
241,832,462
219,732,381
416,836,143
365,257,977
1,309
568,440
2,859
41,802
$ 417,405,892
365,302,638
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,
2021 and 2020, amounted to $265,455 and $255,349, respectively. As of December 31, 2021
and 2020, the unpaid warranty service expenses were record as other payables.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
70
(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, 2021 and 2020, amounted to
$199,811 and $198,315, respectively. As of December 31, 2021 and 2020, the unpaid technical
service expenses were recorded as other payables.
(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, 2021 and 2020, were as follows:
Account
Related party
categories
Notes and accounts receivable
Subsidiaries
Notes and accounts receivable
Other related parties
Other receivables
Other receivables
Other receivables
Other receivables
Subsidiaries - UCGI
Subsidiaries - Others
Associates
Other related parties
Less: Credit balance of investments
accounted for using the equity
method
December
31, 2021
$
1,001,098
December
31, 2020
10,820,424
1,697,684
161,863
10,649
2,463
45
307,456
506,229
15,176
907
64
2,873,802
11,650,256
(40,400)
(381,227)
$
2,833,402
11,269,029
As of December 31, 2021 and 2020, the Company’s investment accounted for using the equity
method in subsidiaries was a credit balance, recorded as a deduction from account receivables
and other receivables (other receivables) – related party. Please refer to note (6)(g).
(vi) Payables to related parties
The payables to related parties as of December 31, 2021 and 2020, were as follows:
Account
Notes and accounts payable
Related party
categories
Subsidiaries - CIT
December
31, 2021
38,910,233
$
December
31, 2020
30,623,968
Notes and accounts payable
Subsidiaries - Others
52,043,163
57,161,436
Notes and accounts payable
Associates
Notes and accounts payable
Other related parties
Other payables
Subsidiaries
315
541,226
167,250
166
16,882
174,010
$
91,662,187
87,976,462
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
71
(vii) Loans to related parties
The interest rate of unsecured loans to subsidiaries was 1.02%~2.05%, and the Company had
assessed that no bad debt expenses should be recognized. As of December 31, 2021 and 2020,
the loans due to related parties were recorded as other receivables.
Account
Other receivables
Other receivables
Other receivables
Other receivables
Less: Credit balance of investments
accounted for using the equity
method
Related party
categories
December
31, 2021
Subsidiaries - CEB
$
Subsidiaries - CEA
Subsidiaries - HengHao
Subsidiaries - UCGI
553,600
830,400
200,000
224,560
December
31, 2020
1,424,000
-
200,000
220,000
(200,000)
(200,000)
$
1,608,560
1,644,000
As of December 31, 2021 and 2020, 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, 2021 and 2020, the guarantees provided to subsidiaries were $413,781
and $214,797, 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 in Taipei
District Court; 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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
72
(11) Subsequent events:
In response to the industry development trend and the future strategic development of the Company and
for the purpose to integrate resources, provide more comprehensive products and services, increase R&D
capabilities, improve efficiency, and increase competitiveness, the Company plans to acquire 51%~65% of
shares of Poindus Systems Corp, Ltd. (“Poindus Systems”) under the public acquisition as a tender offer
after the resolution of the Board of Directors (hereinafter referred to as the Public Acquisition). The price
of the Public Acquisition is 30 New Taiwan Dollars per share. The aforementioned Public Acquisition as a
tender offer had been completed on March 7, 2022, with a total acquisition of 56.04% of Poindus Systems'
ordinary shares and the total acquisition consideration is $353,046. The settlement was completed on
March 11, 2022.
(12) Other:
The employee benefits, depreciation and amortization expenses by categorized function are summarized as
follows:
By function
By item
Employee benefits
Salary
Labor and health insurance
Pension
Remuneration of directors
Others
Depreciation
Amortization
Operating
costs
2021
Operating
expenses
Total
Operating
costs
2020
Operating
expenses
980,082
93,355
33,341
-
158,665
181,888
6,235
9,893,755
674,677
365,173
81,349
437,831
683,706
479,192
10,873,837
768,032
398,514
81,349
596,496
865,594
485,427
1,108,657
81,056
27,718
-
209,112
156,554
6,301
9,021,361
607,195
347,023
61,500
403,706
675,955
384,626
Total
10,130,018
688,251
374,741
61,500
612,818
832,509
390,927
For the years ended December 31, 2021 and 2020, 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
2021
2020
8,965
11
1,411
1,214
8,633
11
1,369
1,175
%3.32
(1.26)
%
-
-
$
$
$
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
73
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.
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, 2021:
(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, 2021 (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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Consolidated Financial Statements
74
(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: Please refer to Table 6
(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 7
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 8
(ix) Trading in derivative instruments: None.
(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:
Please refer to the consolidated financial report of 2021.
75
COMPAL ELECTRONICS, INC.
Statement of cash and cash equivalents
December 31, 2021
(Expressed in thousands of New Taiwan Dollars;
in dollars of Foreign Currency)
Item
Cash on hand
Checking account and
demand deposits
TWD
Description
Foreign currency (US$292,652,637 and others)
Time deposits
Foreign currency (CNY$15,600,000, Maturity date: 2022.1.5~
2022.3.15)
Cash equivalents:
Total
$
Amount
1,741
88,720
8,121,752
8,210,472
67,766
$
8,279,979
Note: The exchange rate is 27.68 New Taiwan dollars for 1 US Dollar; 4.344 New Taiwan Dollars for 1 CNY.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of notes and accounts receivable
December 31, 2021
(Expressed in thousands of New Taiwan Dollars)
76
Item
Description
Sales of non-related parties
Amount
166,954,221
$
D Company
E Company
A Company
B Company
Others (Note)
Less: allowance for uncollectible accounts
Notes and accounts receivable, net
〃
〃
〃
〃
36,713,257
23,605,470
21,149,343
28,579,531
277,001,822
(3,632,789)
$
273,369,033
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
$
Cost
7,535,072
1,188,814
52,234,531
$
60,958,417
Net Realizable
Value
7,676,872
1,188,814
52,234,531
61,100,217
(Continued)
Statement of changes in accumulated impairment of investments accounted for using the equity method
COMPAL ELECTRONICS, INC.
For the year ended December 31, 2021
(Expressed in thousands of New Taiwan Dollars; thousands of shares)
Beginning Balance
Increase (Note 1)
Decrease (Note 2)
Ending Balance (including impairment loss)
Investee Company
Auscom
Panpal
Just
CIH
CEH
Gempal
Hong Ji
Hong Jin
Maxima Ventures l, Inc.
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
Starmems Semiconductor
Kinpo & Compal Assets Development
Raypal
Subtotal
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
Amount (not including
exchange differences on
transaction of foreign
financial statements
Number of
shares
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
-
-
-
$
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
581,227
789,148
83,957,849
Number of
shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,000
1,719
29,000
7,000
3,500
52,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Number of
shares
-
-
-
-
-
-
-
-
126
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,000
2,721
29,000
Amount
-
279,791
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38,316
8,925
4,434
39,732
200,000
17,189
185,939
2,387
289,998
3,210
70,000
89,632
35,000
525,000
-
1,789,553
-
-
-
1,789,553
Amount
-
14,999
163,662
99,815
34,436
5,699
71,160
270,799
82
44,739
255
49,878
38,703
3,277
7,991
5,367
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
810,862
1,855,720
-
-
2,666,582
Share of profit
recognized
Number of
shares
Amount (not including
exchange differences
on transaction of
foreign financial
statements
Exchange differences
on transaction of
foreign financial
statements
Ending Balance
(including exchange
differences on transaction
of foreign statements
3,000
500,000
48,010
53,001
1
90,000
100,000
29,500
10,158
100
98
3,739
41,305
89,755
42,700
2,772
29,060
300
29,500
12,500
20,015
4,648
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
9,100
600
100,000
20,000
3,500
52,500
3,446
-
-
4,074
(31,176)
2,038,308
3,196,352
-
115,690
89,224
39,395
-
79,707
(15,326)
139,516
13,830
351,746
(62,830)
(300,169)
-
14,204
117
29,295
43,721
(425,641)
7,873
(18,034)
908,947
209,561
(569,898)
(23,402)
18,593
1,706
43,341
516,481
116,378
12,658
53,926
3,976
22,068
12,585
(92)
(22,724)
347
(16,261)
(15,543)
(1,741)
(1,029)
85
(6,781)
6,573,057
-
-
-
6,573,057
148,218
6,395,013
10,504,421
41,651,641
3,906,656
2,064,952
1,148,085
365,036
-
399,105
464,104
751,341
74,488
2,541,390
5,109,123
94,838
(3)
682,970
4,776
165,153
244,802
(486,703)
37,824
6,409
7,675,491
1,422,211
7,132,354
101,881
102,074
864,112
647,647
(127,360)
817,392
1,527,945
(37,303)
113,123
252,821
330,604
519
58,858
3,120
57,303
44,309
87,891
33,971
525,085
144,270
98,051,957
(8,877,051)
(881,247)
(10,157)
88,283,502
(22,871)
(714,460)
(926,509)
(4,241,449)
(644,322)
(26,903)
(11,297)
(5,818)
(110)
(59,545)
(39,842)
(2,730)
(47,708)
(356,793)
(37,291)
3
(412)
(14,368)
(15,944)
2,550
(9,506)
(496,294)
(117,143)
(552,071)
(96,309)
(20,796)
(57,435)
(137,828)
(223,393)
579
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,036)
-
-
-
(8,877,051)
125,347
5,680,553
9,577,912
37,410,192
3,262,334
2,038,049
1,136,788
359,218
398,995
404,559
711,499
71,758
2,493,682
4,752,330
57,547
682,558
4,776
150,785
228,858
(484,153)
37,824
(3,097)
7,179,197
1,305,068
6,580,283
101,881
102,074
767,803
626,851
(184,795)
679,564
1,304,552
(37,303)
113,123
252,821
330,604
1,098
58,858
3,120
57,303
44,309
86,855
33,971
525,085
144,270
89,174,906
(881,247)
(10,157)
88,283,502
240,400
468,948
88,992,850
-
-
-
77
Market Price /
Net Value
125,347
5,861,896
9,577,912
37,397,344
3,262,334
2,146,378
1,136,788
359,218
-
1,686,183 (Note 4)
404,559
711,499
71,758
5,266,324 (Note 3)
4,752,330
525,161
-
909,584 (Note 3)
5,936
150,785
228,858
(484,153)
37,824
(3,097)
7,179,197
1,305,047
6,580,283
101,881
102,074
767,803
849,180 (Note 4)
(184,795)
679,564
1,304,552
(37,303)
113,123
252,821
220,216
1,098
46,384
3,120
29,490
35,437
86,855
33,971
525,085
28,691
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 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, 2021.
Note 4：The unit price is calculated by the closing price of Taipei Exchange as of December 31, 2021.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of financial assets measured at fair value through other
comprehensive income - non-current
For the year ended December 31, 2021
(Expressed in thousands of New Taiwan Dollars)
78
Beginning Balance
Increase (Note 1)
Decrease (Note 2)
Ending Balance
Kinpo
Investee Company
Number of
Shares
Amount
124,044 $ 1,507,132
Number of
Shares
-
Amount
496,175
Number of
Shares
-
Amount
-
Number of
Shares
124,044
Amount
2,003,307
Cal-Comp Electronics (Thailand) Public Co., Ltd.
239,631
491,243
19,969
204,485
Taiwan Star
Others
Total
98,046
686,325
-
196,421
-
-
$ 2,881,121
-
249,397
950,057
-
-
-
-
259,600
695,728
244,332
98,046
441,993
78,749
-
323,081
367,069
3,508,097
Collaterals
or Pledged
Assets
None
None
None
None
Note 1: Increase included transfer of the invested company's surplus to capital, purchasing financial assets at fair value through other comprehensive income, deferred tax for unrealized
gains and unrealized gains on financial instruments at fair value.
Note 2: Decrease included the adjustment of the unrealized loss of financial assets according to fair value, the reduction of capital and the return from liquidation.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of property, plant and equipment
For the year ended December 31, 2021
(Expressed in thousands of New Taiwan Dollars)
79
Please refer to Note (6)(i).
Statement of short-term borrowings
December 31, 2021
Creditor
Bank of Communications
Description
Credit Loans
Co., Ltd.
Land Bank of Taiwan
Cathay United Bank
E.SUN Commercial Bank
Agricultural Bank of
Taiwan
Citibank
The bank of Tokyo-
Mitsubishi UFJ
Bank of China
Hua Nan Bank
HSBC Bank (Taiwan)
Limited
United Overseas Bank
First Bank
DBS Bank Limited
Sumitomo Mitsui Banking
Corporation
China Construction Bank
Corporation
Taipei Fubon Commercial
Bank Co., Ltd.
Taishin International Bank
Shin Kong Bank
BNP Paribas Bank
Banco Bilbao Vizcaya
Argentaria Bank
″
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Contract
Period
2021.12~2022.01
2021.11~2022.01
2021.12~2022.01
2021.10~2022.01
2021.10~2022.01
2021.11~2022.01
2021.12~2022.01
2021.12~2022.01
2021.12~2022.01
2021.11~2022.02
2021.12~2022.01
2021.12~2022.01
2021.10~2022.02
2021.10~2022.01
2021.12~2022.01
2021.12~2022.02
2021.12~2022.02
2021.11~2022.02
2021.10~2022.01
2021.07~2022.04
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Note: The range of interest rates of aforementioned loans were 0.42%~0.78%.
Interest Rate
Note
Loan
Commitments
5,536,000
$
Collaterals or
Pledged Assets
None
Ending
balance
5,536,000
6,000,000
4,152,000
4,000,000
1,550,000
8,165,600
5,536,000
6,089,600
6,000,000
4,982,400
4,152,000
3,000,000
5,536,000
6,920,000
4,152,000
3,736,800
5,000,000
1,500,000
2,768,000
3,044,800
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
5,812,800
4,152,000
3,272,400
1,384,000
3,598,400
5,536,000
6,089,600
3,875,200
3,691,200
3,321,600
2,906,400
5,508,320
6,920,000
4,152,000
1,799,200
4,428,800
1,384,000
2,600,000
3,000,000
$
91,821,200
78,967,920
(Continued)
COMPAL ELECTRONICS, INC.
Statement of notes and accounts payable
December 31, 2021
(Expressed in thousands of New Taiwan Dollars)
80
Amount
$
36,295,215
22,517,970
15,913,636
11,931,436
10,634,860
8,942,796
13,304,882
$
119,540,795
Suppliers
E Company
J Company
A Company
B Company
D Company
I Company
Others (Note)
Total
Note: The amount of individual vendor included in others does not exceed 5% of the account balance.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of long-term borrowings
December 31, 2021
(Expressed in thousands of New Taiwan Dollars)
81
Contract
Period
2021.09~2024.09
Interest
Rate
Note
Amount
2,900,000
Collaterals or
Pledged Assets
None
Amount
Creditor
Yuan Ta Commercial Bank
Loan
Commitments
3,000,000
$
Loan within
1 year
2,900,000
Mizuho Bank, Ltd.
5,536,000
5,500,000
KGI Bank
2,800,000
2,800,000
Loan more
than 1 year
-
-
-
2021.05~2023.05
2021.09~2023.09
Shanghai Commercial and
2,300,000
Savings Bank
Far Eastern International
1,000,000
Bank
Co., Ltd.
CTBC Bank Co., Ltd.
2,000,000
-
-
-
2,300,000
2020.06~2023.06
1,000,000
2020.09~2023.09
2,000,000
2020.11~2023.11
Bank SinoPac Co., Ltd.
3,300,000
2,475,000
825,000
2019.03~2023.03
Bank of America
4,567,200
2,000,000
-
2021.08~2022.09
E.SUN Commercial Bank
2,000,000
Bank of Taiwan
3,500,000
-
-
300,000
2021.11~2024.11
2,200,000
2021.12~2024.12
$
30,003,200
15,675,000
8,625,000
Note: The range of interest rates of aforementioned loans were 0.62%~0.98%.
Statement of lease liabilities
Item
Buildings
Vehicles
Description
For office and factory space
For operating activities
Lease term
1~10 years
3~5 years
Less：Current portion
Lease liabilities–Non-
Current
〃
〃
〃
〃
〃
〃
〃
〃
〃
5,500,000
2,800,000
2,300,000
None
None
None
1,000,000
None
2,000,000
3,300,000
2,000,000
300,000
2,200,000
24,300,000
None
None
None
None
None
Discount
rate
%1.2
%1.2
Ending balance
1,338,058
$
11,078
1,349,136
(357,794)
$
991,342
(Continued)
COMPAL ELECTRONICS, INC.
Statement of other payables
December 31, 2021
(Expressed in thousands of New Taiwan Dollars)
82
Item
Payroll payables and year-end
Description
Payroll for December 2021, estimated year-end bonuses
Amount
$
4,180,784
bonuses payable
for 2021, and employees and directors’ compensations
Import and export fee payables
Technical service fee payables
Others (Note)
Total
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, 2021
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.
1,326,545
560,108
4,403,329
$
10,470,766
Amount
$ 1,171,128,396
371,662
(261,537)
(927,323)
1,170,311,198
1,302,660
$ 1,171,613,858
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating costs
For the year ended December 31, 2021
(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
83
Amount
$
44,603,184
735,139,560
(55,216,445)
(37,725)
(3,364,426)
(483,388)
(2,951)
720,637,809
745,554
1,171,173
722,554,536
685,002
(1,189,112)
(68,380)
721,982,046
11,758,417
407,144,561
903,172
(7,603,013)
(3,238)
(346,034)
1,133,835,911
4,158,263
3,364,426
1,795,897
555,006
$1,143,709,503
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating expenses
For the year ended December 31, 2021
(Expressed in thousands of New Taiwan Dollars)
84
Item
Payroll expenses
Export expenses
Royalty expenses
Research expenses
Shipping expenses
Sample expenses
Others (Note)
Total
Selling
expenses
Administrative
expenses
Research and
development
expenses
$
362,202
288,665
176,661
-
4,459,970
356,122
76,411
$
5,720,031
1,526,644
8,004,909
-
-
-
21,767
139
1,128,604
2,677,154
-
-
1,555,325
1,878
1,713
2,364,953
11,928,778
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
(cid:313)(cid:310)
Table 1 Loans to other parties:
(December 31, 2021)
Name of
lender
No.
0 The
Name of
borrower
UCGI
Company
Account
name
Other
receivables
Related
party
Y
Highest balance
of financing to
other parties
during the
period
Ending
balance
475,325
224,560
Actual
usage
amount
during the
period
224,560
Range of
interest rates
during the
period
Purposes of
fund
financing for
the borrower
1.02%~1.08% Short-term
financing
Transaction
amount for
business
between two
parties
-
0 The
HengHao Other
Company
0 The
CEB
Company
0 The
CEA
Company
1 CIH
CEP
2 CPC
CDE
2 CPC
CIC
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
3 CIT
3 CIT
3 CIT
CCI
Nanjing
Other
receivables
Rayonnant
(Taicang)
Other
receivables
HengHao
Kunshan
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
receivables
7 Panpal
Ray-Kwong
Medical
Other
receivables
8 BSH
CIN
9 Arcadyan Acradyan
Brasil
9 Arcadyan Acradyan
Brasil
9 Arcadyan Arcadyan
UK
Other
receivables
Other
receivables
Other
receivables
Other
receivables
9 Arcadyan Arcadyan
Vietnam
Other
receivables
9 Arcadyan Arcadyan
Vietnam
Other
receivables
9 Arcadyan Arcadyan
Russia
Other
receivables
9 Arcadyan Arcadyan
Russia
Other
receivables
9 Arcadyan Arcadyan
Russia
Other
receivables
10 Arcadyan
CNC
Holding
10 Arcadyan
CNC
Holding
11 SVA
CNC
Other
receivables
Other
receivables
Other
receivables
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
400,000
200,000
200,000
1.08%
Short-term
financing
1,985,950
553,600
553,600
1.02%~2.05% Short-term
financing
838,800
830,400
830,400
1.02%
57,070
55,360
55,360
3.50%
1,315,200
-
-
2.20%
438,400
434,400
434,400
2.20%
1,997,450
1,937,600
1,561,152
2.00%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
137,098
69,200
-
1.30%~4.35% Short-term
financing
856,050
830,400
830,400
1.30%
998,725
968,800
968,800
1.30%
657,600
651,600
651,600
2.20%
Short-term
financing
Short-term
financing
Short-term
financing
524,640
260,640
173,760 2.00%~2.20% Short-term
financing
570,700
553,600
553,600
1.30%
1,200,000
600,000
600,000
1.08%
10,000
10,000
10,000
1.10%
278,100
276,800
207,600
1.02%
57,020
35,984
35,984
1.00%
55,620
55,360
-
1.00%
285,100
-
285,100
276,800
255,510
-
-
-
-
1.00%
1.00%
1.00%
57,020
57,020
-
-
-
1.00%
-
1.00%
27,800
27,800
6,705
1.00%
484,670
-
-
1.00%
470,560
470,560
470,560
1.00%
153,440
-
-
3.85%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
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
Transaction
for business
between two
parties
Short-term
financing
Short-term
financing
Short-term
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
financing
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- Operating
demand
- Operating
demand
Operating
financing
Operating
financing
4,349,995
4,345,760
5,375,096
165,990
165,990
377,472
-
-
-
-
-
-
-
-
Operating
financing
- Operating
financing
Operating
financing
Allowance
for
bad debt
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
22,272,053
Maximum
limit of fund
financing
44,544,106
Note
(Note 1)
22,272,053
44,544,106
(Note 1)
22,272,053
44,544,106
(Note 1)
22,272,053
44,544,106
(Note 1)
37,397,344
37,397,344
(Note 2)
2,613,831
2,613,831
(Note 3)
2,613,831
2,613,831
(Note 3)
22,323,113
22,323,113
(Note 4)
22,323,113
22,323,113
(Note 4)
22,323,113
22,323,113
(Note 4)
2,838,191
2,838,191
(Note 5)
2,838,191
2,838,191
(Note 5)
4,787,996
4,787,996
(Note 6)
8,676,307
8,676,307
(Note 7)
2,344,758
2,344,758
(Note 8)
1,172,379
2,344,758
(Note 8)
6,580,283
6,580,283
(Note 9)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
2,531,220
5,062,440
(Note 10)
132,792
5,062,440
(Note 10)
132,792
5,062,440
(Note 10)
301,977
5,062,440
(Note 10)
2,416,212
2,416,212
(Note 11)
-
2,416,212
2,416,212
(Note 11)
28,344
28,344
(Note 12)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
(cid:313)(cid:311)
Table 1 Loans to other parties:
(December 31, 2021)
Note 1:
Note 2:
Note 3:
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.
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
Note 4:
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
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Note 10:
Note 11:
Note 12:
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 BSH’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of BSH. When a short-term financing facility with BSH 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 BSH’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 BSH, 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.
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.
According 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 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 SVA.
Also, the amount shall be combined with the SVA's endorsements/guarantees 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 endorsements/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
(cid:313)(cid:312)
Table 2 Guarantees and endorsements for other parties:
(December 31, 2021)
Counter-party of
guarantee and
endorsement
Name of
guarantor
No.
0 The Company CEB
Name
Relationship
with the
Company
(Note 4)
Limitation on
amount of
guarantees
and
endorsements
for a specific
enterprise
27,840,066
Highest
balance for
guarantees
and
endorsements
during the
period
115,450
Balance of
guarantees
and
endorsements
as of
reporting date
113,488
Property
pledged for
guarantees
and
endorsements
(Amount)
-
Actual usage
amount
during the
period
113,488
0 The Company CEA
(Note 4)
27,840,066
177,786
174,384
174,384
0 The Company CEP
(Note 3)
27,840,066
151,129
99,845
99,845
0 The Company HengHao
Kunshan
1 Arcadyan
Arcadyan
AU
(note 4)
27,840,066
26,160
26,064
26,064
(Note 4)
1,687,480
209,700
207,600
-
-
-
-
-
Ratio of
accumulated
amounts of
guarantees and
endorsements to
net worth of the
latest financial
statements
Maximum
amount
for guarantees
and endorsements
(Note 1(cid:501)(cid:501)2)
0.10%
55,680,132
0.16%
55,680,132
0.09%
55,680,132
0.02%
55,680,132
1.64%
5,062,440
(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
-
Y
Y
Y
Y
-
-
-
-
-
-
Y
-
Note 1:
Note 2:
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 current
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 are
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.
According to Arcadyan's Procedures for Endorsement and Guarantee, the total amount of endorsements/guarantees Arcadyan and its subsidiaries are permitted to make shall not exceed 40% of the
Arcadyan's net worth. Endorsements/guarantees Arcadyan and its subsidiaries are permitted to make for a single company shall not exceed 1/3 of the aforementioned total amount.
Note 3: Subsidiary whose over 50% common stock is directly owned.
Note 4: Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
(cid:68)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:77)(cid:33)(cid:70)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:80)(cid:79)(cid:74)(cid:68)(cid:84)(cid:45)(cid:33)(cid:74)(cid:79)(cid:68)(cid:47)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:79)(cid:112)(cid:117)(cid:102)(cid:116)(cid:33)(cid:117)(cid:112)(cid:33)(cid:81)(cid:98)(cid:115)(cid:102)(cid:111)(cid:117)(cid:46)(cid:68)(cid:112)(cid:110)(cid:113)(cid:98)(cid:111)(cid:122)(cid:46)(cid:80)(cid:111)(cid:109)(cid:122)(cid:33)(cid:71)(cid:106)(cid:111)(cid:98)(cid:111)(cid:100)(cid:106)(cid:98)(cid:109)(cid:33)(cid:84)(cid:117)(cid:98)(cid:117)(cid:102)(cid:110)(cid:102)(cid:111)(cid:117)(cid:116)
(cid:313)(cid:313)
Table 3 Securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2021)
Name of
holder
Category and name of security
The Company Taiwan Star
Relationship with security
issuer
(cid:4137)
Kinpo
Cal-Comp
The same chairman of the
Company
The same chairman of the
Company
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
HWA VI Venture Capital Corp.
HWA Chi Venture Capital Corp.
mProbe Ltd.
Chen Feng Optoelectronics
TOP Taiwan VI Venture Capital Co.,
Ltd.
IIH Biomedical Venture Fund
Phoenix Innovation Investment
Corporation.
Others
Total
Panpal
Compal Electronics, Inc.
The parent company
Kinpo
The same chairman of the
Company
CDIB Partners Investment Holding
Corp.
(cid:4137)
AcBel
The Chairman of the Board
is the first degree of kinship
of the Chairman of the
Company
Taiwan Biotech Co., Ltd.
(cid:4137)
Others
Total
Gempal
Compal Electronics, Inc.
The parent company
Lian Hong Art. Co., Ltd.
(cid:4137)
Others
Total
Account name
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 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
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 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
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
98,046
Carrying
value
441,993
Holding
percentage
(%)
2%
Fair value
Note
441,993
124,044
2,003,307
9%
2,003,307
259,600
695,728
5%
695,728
290
18,722
10%
18,722
632
13,342
11%
13,342
4,000
26,600
3%
26,600
6,685
101,676
10%
101,676
402
4,233
2%
4,233
5,000
48,800
8%
48,800
6,000
88,740
19%
88,740
287,259
___________
3,730,400
31,648
765,884
1%
765,884
69,370
1,120,320
5%
1,120,320
54,000
880,740
5%
880,740
5,677
207,766
1%
207,766
6,995
116,883
3%
116,883
126,498
___________
3,218,091
18,369
444,538
-
444,538
2,140
108,551
6%
108,551
2,139
___________
555,228
(Continued)
(cid:68)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:77)(cid:33)(cid:70)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:80)(cid:79)(cid:74)(cid:68)(cid:84)(cid:45)(cid:33)(cid:74)(cid:79)(cid:68)(cid:47)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:79)(cid:112)(cid:117)(cid:102)(cid:116)(cid:33)(cid:117)(cid:112)(cid:33)(cid:81)(cid:98)(cid:115)(cid:102)(cid:111)(cid:117)(cid:46)(cid:68)(cid:112)(cid:110)(cid:113)(cid:98)(cid:111)(cid:122)(cid:46)(cid:80)(cid:111)(cid:109)(cid:122)(cid:33)(cid:71)(cid:106)(cid:111)(cid:98)(cid:111)(cid:100)(cid:106)(cid:98)(cid:109)(cid:33)(cid:84)(cid:117)(cid:98)(cid:117)(cid:102)(cid:110)(cid:102)(cid:111)(cid:117)(cid:116)
(cid:313)(cid:314)
Table 3 Securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2021)
Name of
holder
Hong Ji
Category and name of security
SUYIN Optronics Co., Ltd.
(“SUYIN Optronics”)
Relationship with security
issuer
(cid:4137)
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
BSH
Suzhou Genki Fuhong Health
Management Co., Ltd.
CitiBank RED ARC TERMLIQUIDITY
FUND
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
380
Carrying
value
-
Holding
percentage
(%)
1%
Fair value
-
Note
(Note 1)
332
200
1,152
349
60
-
-
-
-
-
1%
7%
5%
5%
14%
-
-
-
-
-
(Note 1)
(Note 1)
(Note 1)
(Note 1)
(Note 1)
37,475
7%
37,475
1,650
26,169
7%
26,169
1,229
-
6%
-
(Note 1)
___________
63,644
9,000
-
9,000
-
19%
-
(Note 1)
873
124,560
-
124,560
4,340
17%
4,340
277,312
-
277,312
-
-
-
-
Account name
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
Note 1:The carrying value is the remaining amount after deducting accumulated impairment.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
(cid:314)(cid:305)
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, 2021)
Name of
company
Category and name
of security
Account
name
Name of
counter-party
Relationship
with the
company
Beginning Balance
Purchases
Sales
Others
Ending Balance
Shares/ Units
Amount
Shares/ Units
Amount
Shares/ Units
Price
Cost
Gain (loss)
on disposal Shares/ Units
Amount
Shares/ Units
Amount
(In Thousands of New Taiwan Dollars/ shares)
Jipo Investment
Related party
23,172
281,546
46,197
616,864
-
-
-
-
Panpal
Stock :
Kinpo
CIT
CIT
CIT
CIT
CEC
CPO
CPO
CIC
CIC
CET
CET
CNC
CNC
BSH
Structured deposits :
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits–
Bank of China RMB
Strcutured Deposit
Yuntong Wealth
Time-type structured
deposit products
Structured deposits–
Industrial and
Commercial Bank of
China RMB
Strcutured Deposit
Structured deposits-
Win-win Interest
Rate Structure RMB
Structural Deposits
Structured deposits–
Industrial and
Commercial Bank of
China RMB
Strcutured 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–
Bank of China RMB
Strcutured Deposit
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Structured deposits–
Industrial and
Commercial Bank of
China RMB
Strcutured Deposit
Structured deposits-
Kunshan Rural
Commercial Bank
Structured deposits-
Agricultural Bank of
China "HuiLiFeng"
customization RMB
structured deposit
Fund
RED ARC TERM
LIQUIDITY FUND
Financial assets at
fair value through
other
comprehensive
income-non-
current
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
Financial assets
at fair value
through profit
or loss-current
Financial assets at
fair value through
profit or loss-
current
Agricultural Bank
of China
Bank of China
Bank of
Communications
Industrial and
Commercial Bank
of China
China CITIC
Bank
Financial assets at
fair value through
profit or loss-
current
Industrial and
Commercial Bank
of China
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
Financial assets at
fair value through
profit or loss-
current
Agricultural Bank
of China
Agricultural Bank
of China
Bank of China
Agricultural Bank
of China
Financial assets at
fair value through
profit or loss-
current
Industrial and
Commercial Bank
of China
Kunshan Rural
Commercial Bank
Agricultural Bank
of China
Citibank
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
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.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,470,031
-
-
-
-
-
-
261,366
-
241,113
-
-
130,799
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,660,937
781,618
434,232
868,464
542,790
521,078
521,078
495,024
521,078
238,828
-
390,809
390,513
260,342
1,400,550
-
-
-
-
-
-
-
-
-
-
-
-
-
3,156,037
3,130,968
791,505
781,618
439,453
434,232
877,521
868,464
546,782
542,790
526,513
521,078
525,696
521,078
761,903
756,390
528,433
521,078
25,069
(Note 2)
9,887
(Note 2)
5,221
(Note 2)
9,057
(Note 2)
3,992
(Note 2)
5,435
(Note 2)
4,618
(Note 2)
5,513
(Note 2)
7,355
(Note 2)
484,885
479,941
4,944
395,872
390,809
393,959
390,513
393,905
390,513
5,063
(Note 2)
3,446
(Note 2)
3,392
(Note 2)
1,121,474
1,120,440
1,034
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
221,910
(Note 1)
69,369
1,120,320
-
-
-
-
-
-
-
-
-
-
-
-
(628)
(Note 1)
(2,798)
(Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
277,312
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
(cid:314)(cid:306)
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2021)
If the counter-party is a related party,
disclose the previous transfer information
Transaction
amount
415,480
Status of
payment
Paid
Counter-
party
Natural
person
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
Appraisal and
price
negotiation
Purpose of
acquisition
and current
condition
Operational
use
Others
None
Name of
company
Arcadyan
Name of
property
Land located
at Guangfu
Road,
Hsinchu City
Transaction
date
March 17,
2021
(Note 1)
Note 1(cid:506)
In response to business operation, the Group authorized the chairman to purchase land within $500,000 by a resolution of the Board of Directors on March 17, 2021. In addition, the
Group has signed an agreement with non-related parties on April 7, 2021 to purchase land.
Table 6 Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2021)
(In Thousands of New Taiwan Dollars)
Name of
company
CDE
Type of
property
Right-of-use
assets(cid:28860)land
and building
Transaction
date
May 7, 2021
(Note 1)
Acquisition
date
2011~2016
Book value
1,446,029
Gain
(losses) on
disposal
1,961,419
Amount
actually
received
The payment
has been
received.
Transaction
amount
4,147,946
(CNY
956,012
thousand)
Counter-
party
Kunshan
XinCheng
Construction
and
Development
Co., Ltd.
Relationship
with the
company
Non-related
party
Purpose of
disposal
Activating
the assets
References
for
determine
price
Appraisal and
price
negotiation
Note 1: The board of directors resolved to activate assets on May 7, 2021, the Group signed an agreement with a non-related party regarding the disposal of property
Others
None
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:307)
Table 7 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, 2021)
Company
Name
The
Company
Counter
party
UCGI
CBN
CEP
Nature of
relationship
Subsidiaries wholly
owned by the
Company
The Company's
subsidiaries
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
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Percentage
of total
purchases/
(sales)
Amount
(749,825)
(0.1)%
Purchase/
(Sale)
Sale
Payment terms
120 days
Unit price
Similar to non-
related parties
Payment Terms
There is no significant
difference
Sale
(803,662)
(0.1)%
Net 90 days from sale
Purchase
218,938
-
120 days
Purchase
149,835,609
13.1%
120 days
Purchase
178,478,231
15.6%
120 days
Purchase
28,688,394
2.5%
120 days
Purchase
42,665,925
3.7%
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
Markup based on
BCI and its
subsidiaries' cost
Purchase
17,101,460
1.5% Net 60 days from purchase Markup based on
Etrade and its
subsidiaries' cost
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
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
220,379
0.1%
540,542
0.2%
-
-
(62,366,178)
(29.6)%
(4,188,862)
(2.0)%
(3,086,146)
(1.5)%
(16,612,130)
(7.9)%
(2,631,399)
(1.2)%
Kinpo Electronic,
Inc.
With the same
chairman
Purchase
527,883
-
35 days from the 1st of the
following month
Similar to non-
related parties
There is no significant
difference
(527,418)
(0.2)%
Just and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(179,037,498)
(99.9)%
120 days
CIH and its
subsidiaries
HSI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(102,464)
(0.1)%
120 days
Purchase
206,180
0.1%
120 days
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(150,179,442)
(93.5)%
120 days
CEA
CEB
With the same
ultimate parent
company
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(428,856)
(0.3)%
120 days
Sale
(390,795)
(0.2)%
120days
Sale
(3,491,406)
(2.2)%
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
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, 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
4,188,862
99.9%
-
-
(57,375)
(0.1)%
62,366,178
96.5%
207,124
0.2%
261,497
0.2%
1,580,332
1.1%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:308)
Table 7 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, 2021)
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
HSI and its
subsidiaries
With the same
ultimate parent
company
Purchase/
(Sale)
Sale
Amount
(5,042,538)
Percentage
of total
purchases/
(sales)
(3.1)%
Payment terms
120 days
Unit price
Similar to non-
related parties
Henghao
HSI and its
subsidiaries
Just and its
subsidiaries
CPM
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
An associate
Purchase
245,113
0.2%
120 days
Purchase
712,378
0.5%
120 days
Purchase
102,536
0.1%
120 days
Purchase
4,602,669
Purchase
1,200,858
3.1%
0.7%
0.8%
120 days
120 days
120 days
Changbao
An associate
Purchase
1,109,808
Purchase
803,108
30.0% Net 90 days from delivery
-
Parent company
Sale
(42,863,233)
(88.6)%
120 days
Sale
(135,499)
(5.6)%
120 days
Sale
(590,887)
(1.2)%
120 days
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
2,304,731
1.6%
(61,174)
(0.1)%
(170,879)
(0.1)%
-
-
(1,382,777)
(1.1)%
(383,101)
(0.3)%
(552,945)
(0.4)%
(540,542)
(43.0)%
16,612,130
94.0%
1,993,166
2.7% (Note 1)
1,269,252
1.4%
Payment Terms
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
There is no significant
difference
There is no significant
difference
There is no significant
difference
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
Similar to non-
related parties
Similar to non-
related parties
Markup based on
BCI and its
subsidiaries' cost
According to markup
pricing
According to markup
pricing
Acbel and its
subsidiaries
CBN
BCI and its
subsidiaries
Compal Electronic,
Inc.
Compal Electronic,
Inc.
HSI and its
subsidiaries
CEB
CEA
CIH and its
subsidiaries
CPM
Acbel and its
subsidiaries
CEB
CEA
CIH and its
subsidiaries
BCI and its
subsidiaries
CEA
Cal-Comp
CEA
CEB
CIH and its
subsidiaries
BCI and its
subsidiaries
CEB
Etrade and its
subsidiaries
Compal Electronic,
Inc.
HSI and its
subsidiaries
The Chairman of the
Board is the first
degree of kinship of
the Chairman of the
Company
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
An associate
The Chairman of the
Board is the first
degree of kinship of
the Chairman of the
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
chairman
With the same
ultimate 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
Sale
(783,053)
(1.6)%
120 days
According to markup
pricing
There is no significant
difference
507,450
0.6%
Purchase
3,488,526
7.3%
120 days
Purchase
475,357
Purchase
608,220
1.0%
1.3%
120 days
120 days
According to markup
pricing
Similar to non-
related parties
Similar to non-
related parties
Adjustments will be
made based on demand
for funding
There is no significant
difference
There is no significant
difference
(1,580,332)
(1.7)%
(178,927)
(0.2)%
(284,359)
(0.3)%
Purchase
(108,252)
1.9%
120 days
Similar to non-
related parties
There is no significant
difference
1,537
(0.2)%
Purchase
392,098
6.6%
120 days
Similar to non-
related parties
There is no significant
difference
(261,497)
(15.4)%
Purchase
590,436
9.9%
120 days
Similar to non-
related parties
There is no significant
difference
(1,269,252)
(31.9)%
Purchase
473,416
8.0%
45 days
Similar to non-
related parties
There is no significant
difference
(376,304)
(22.1)%
Purchase
1,468,381
24.7%
120 days
Sale
(473,416)
9.7%
45 days
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference
There is no significant
difference
(31,855)
(1.9)%
376,304
(17.4)%
Purchase
429,390
32.4%
120 days
Similar to non-
related parties
There is no significant
difference
(207,124)
(16.0)%
Purchase
783,338
59.2%
120 days
Similar to non-
related parties
There is no significant
difference
(507,450)
(39.3)%
Purchase
108,252
1.8%
45 days
Similar to non-
related parties
There is no significant
difference
(1,537)
(0.1)%
Sale
(17,096,471)
(99.5)% Net 60 days from delivery According to markup
pricing
Purchase
1,639,840
14.2% Net 60 days from purchase Similar to non-
related parties
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
2,631,399
98.2%
(246,217)
(10.0)%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:309)
Table 7 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, 2021)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
Forever and its
subsidiaries
HSI and its
subsidiaries
Counter
party
Nature of
relationship
With the same
ultimate parent
company
With the same
ultimate parent
company
UCGI
Avalue and its
subsidiaries
HengHao
Compal Electronic,
Inc.
CIH and its
subsidiaries
CEP
Compal Electronic,
Inc.
Purchase/
(Sale)
Sale
Amount
(242,089)
Percentage
of total
purchases/
(sales)
Unit price
(100.0)% Net 60 days from purchase Similar to non-
related parties
Payment terms
Sale
(166,677)
(16.5)% Net 45 days after the month
ended
Parent company
Purchase
757,372
92.3%
120 days
With the same
ultimate parent
company
Sale
(245,484)
(2.1)%
120 days
Parent company
Sale
(220,757)
(99.8)%
120 days
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(28,700,918)
(84.9)%
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
Sale
(207,079)
(0.6)%
120 days
Sale
(1,639,069)
(4.9)% Net 60 days from delivery Similar to non-
related parties
Sale
(712,526)
2.1%
120 days
Purchase
4,867,677
16.2%
120 days
Purchase
98,879
8.8%
120 days
Similar to non-
related parties
Similar to non-
related parties
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
CIH and its
subsidiaries
With the same
ultimate parent
company
CIH and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Forever and its
subsidiaries
With the same
ultimate parent
company
Acbel and its
subsidiaries
The Chairman of the
Board is the first
degree of kinship of
the Chairman of the
Company ultimate
parent company
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
46,437
(100.0)%
23,533
11.7%
(220,379)
(94.1)%
61,174
1.7%
-
-
3,086,146
86.8%
57,375
0.8%
246,217
(3.2)%
170,879
(2.3)%
(2,304,731)
(13.0)%
(1,993,166)
(15.1)% (Note 1)
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
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
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
242,089
0.8% 60 days after the delivery
Similar to non-
related parties
There is no significant
difference
(46,437)
(0.3)%
Purchase
168,952
0.6%
120 days
Similar to non-
related parties
There is no significant
difference
(79,867)
(0.5)%
Arcadyan
CNC
Acradyan
Vietnam
Acradyan
Germany
Acradyan
Germany
Acradyan
USA
Acradyan
AU
CNC
Acradyan
Vietnam
Arcadyan
Arcadyan
Arcadyan
Arcadyan's subsidiary
Sale
(1,226,052)
(3.0)% Net 150 days from delivery
Arcadyan's subsidiary
Sale
(7,323,420)
(20.0)% Net 120 days from delivery
Arcadyan's subsidiary
Sale
(505,287)
(1.0)% Net 60 days from the end of
the month of delivery
-
-
-
Arcadyan's subsidiary Purchase
12,985,802
26.0% Net 120 days from delivery According to markup
Arcadyan's subsidiary Purchase
1,091,354
2.0% Net 180 days from the end of
the month of delivery
pricing
According to markup
pricing
With the same
ultimate parent
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
Sale
(12,985,802)
(100.0)% Net 120 days from delivery According to markup
(1,091,354)
(100.0)% Net 180 days from the end of
the month of delivery
pricing
According to markup
pricing
Purchase
1,226,052
100.0% Net 150 days from delivery
-
-
-
-
-
-
-
-
-
266,118
4.0%
2,020,989
29.0%
23,439
- %
(2,028,930)
(27.0)% (Note1)
(Note 2)
- % (Note1)
2,028,930
- % (Note1)
(Note 2)
- % (Note1)
(266,118)
(100.0)% (Note1)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:310)
Table 7 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, 2021)
Transaction details
Percentage
of total
purchases/
(sales)
Amount
Payment terms
7,323,420
100.0% Net 120 days from delivery
Purchase/
(Sale)
Purchase
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Unit price
-
Payment Terms
-
Percentage
of total
notes/accounts
receivable
(payable)
Note
(100.0)% (Note1)
Ending
Balance
(2,020,989)
Purchase
505,287
100.0% Net 60 days from the end of
-
-
(23,439)
100% (Note1)
the month of delivery
Company
Name
Acradyan
USA
Counter
party
Arcadyan
Acradyan
AU
Arcadyan
Nature of
relationship
With the same
ultimate parent
company
With the same
ultimate parent
company
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, 2021 is 1,276,111 thousand dollars.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:311)
Table 8 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
Nature of
relationship
The Company's
subsidiary
The Company's
subsidiary
With the same
chairman
Parent company
Ending Balance
Turnover
rate
540,542
220,379
1,697,598
1.93
3.04
-
4,188,862
33.34
Parent company
62,366,178
(December 31, 2021)
Name of Company
The Company
Counter-party
CBN
The Company
UCGI
The Company
Cal-Comp
Just and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
CIH and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
BCI and its
subsidiaries
CEA
Etrade and its
subsidiaries
HSI and its
subsidiaries
HSI and its
subsidiaries
HSI and its
subsidiaries
Arcadyan
Arcadyan
Arcadyan
CNC
CBN
Compal Electronic,
Inc.
Compal Electronic,
Inc.
CEA
CEB
BCI and its
subsidiaries
HSI and its
subsidiaries
Compal Electronic,
Inc.
HSI and its
subsidiaries
CEB
CEA
CEB
Compal Electronic,
Inc.
Compal Electronic,
Inc.
Etrade 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
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
Parent company
Parent company
With the same
ultimate parent
company
With the same
ultimate parent
CIH and its
subsidiaries
Arcadyan Germany Arcadyan's subsidiary
Arcadyan USA
Arcadyan's subsidiary
Arcadyan Vietnam Arcadyan's subsidiary
Arcadyan
Just and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Overdue
Amount
-
Action taken
-
(In Thousands of New Taiwan Dollars)
Amounts received in
subsequent period
297,600 (Note 1)
Allowance
for bad
debts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
88,156 (Note 1)
-
-
(Note 1)
(Note 1)
62,366,178 (Note 1)
161,410 (Note 1)
134,253 (Note 1)
-
-
(Note 1)
(Note 1)
16,612,130 (Note 1)
-
(Note 1)
135,132
(Note 1)
448,708
(Note 1)
366,319 (Note 1)
1,843,015 (Note 1)
2,302,953 (Note 1)
-
(Note 1)
(Note 1)
94,823 (Note 2)
1,360,434 (Note 2)
(Note 2)
-
1,854,400
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.63
4.14
207,124
261,497
2.36
1,580,332
2.23
2,304,731
2.08
16,612,130
1,993,166
3.16
0.06
1,269,252
0.45
507,450
3.09
376,304
2.52
2,631,399
3,086,146
246,217
5.34
3.54
6.14
170,879
8.32
266,118
2,020,989
1,276,111
(Note 4)
2,028,930
(Note 5)
4.82
4.79
(Note 4)
4.78
182,739
(Note 6)
-
12,530
Enhanced the
collection
175,468 (Note 3)
Note 1:Balance as of Mrach 4, 2022.
Note 2:Balance as of Mrach 1, 2022.
Note 3:Balance as of Mrach 9, 2022.
Note 4:Other receivables due to purchasing on behalf of related parties.
Note 5:Accounts receivables due to processing raw material.
Note 6:Other receivables due to processing and sales of raw material.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:312)
Table 9 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
Investor
Company
Investee
Company
The Company Kinpo&Compal Group Assets
Development Corporation
Bizcom
Just
CIH
Panpal
Gempal
(In Thousands of New Taiwan Dollars/ shares)
Original Investment Amount
December 31,
2021
525,000
December 31,
2020
-
Shares
52,500
Ending Balance
Percentage
of
Ownership
70%
Carrying
Value
525,085
Net income
(losses) of
investee
Share of
profits/losses of
investee
120
85
Note
36,369
36,369
100
100%
404,559
(19,042)
(15,326)
1,480,509
1,480,509
48,010
100%
9,577,912
2,038,308
2,038,308
1,787,680
1,787,680
53,001
100% 37,410,192
3,196,352
3,196,352
Location
Main Businesses
and Products
Taipei City
City
Real estate development
leasing and related
management business
Houston, USA Warranty services and
marketing of LCD TVs and
notebook PCs
Investment
British Virgin
Islands
British Virgin
Islands
Investment
Taipei City
Investment
5,171,837
5,171,837
500,000
100%
5,120,741
19,461
(31,176)
(Note 1)
Taipei City
Investment
900,036
900,036
90,000
100%
1,716,614
145,081
115,690
Kinpo Group management
Taipei City
Consultation, training
services, etc.
3,000
3,000
300
38%
4,776
288
117
(Note 1)
Ripal
Unicore
Lead-Honor Optronics. Co., Ltd.
(“Lead-Honor”)
CEH
Shennona Taiwan
Tainan City
Taipei City
Manufacturing of electric
appliance and audiovisual
electric products
Management&Consultant,
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
60,000
60,000
6,000
100%
102,074
21,471
18,593
200,000
200,000
20,000
100%
101,881
(21,226)
(23,402)
42,000
42,000
2,772
42%
-
34
34
1
100%
3,262,334
-
-
-
-
6,000
6,000
600
100%
3,120
382
347
Allied Circuit
Taoyuan City Production and sales of PCB
395,388
395,388
10,158
20%
398,995
390,431
79,707
Maxima Ventures I, Inc.
(“Maxima”)
Aco Smartcare
Lipo Holding Co., Ltd.(“Lipo”)
CPE
Starmems
Crownpo Technology
Inc. (“Crownpo”)
Hong Ji
Hong Jin
Mactech
Auscom
Arcadyan
FGH
Shennona
HSI
CEP
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
County
Taipei City
-
1,260
-
-
-
-
-
90,000
90,000
100,000
52%
57,303
(31,249)
(16,261)
489,450
489,450
98
49%
711,499
284,726
139,516
Investment
197,463
197,463
6,427
100%
767,803
1,706
1,706
35,000
-
3,500
35%
33,971
(2,940)
(1,029)
149,547
149,547
3,739
33%
71,758
41,617
13,830
R&D of MEMS microphone
related products
Manufacturing, processing,
and selling resistor chips,
networking chips, diodes,
multilayer ceramic capacitors,
semiconductor devices, and
selling electronic products
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%
1,136,788
359,218
252,821
89,224
39,395
41,445
89,224
39,395
22,068
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%
125,347
4,074
4,074
1,325,132
1,325,132
41,305
19%
2,493,682
1,787,544
351,746
British Virgin
Islands
Delaware,
USA
British Virgin
Islands
Poland
Investment
2,754,741
2,754,741
89,755
100%
4,752,330
(62,830)
(62,830)
Medical care IOT business
32,665
32,665
2,600
100%
1,098
(92)
(92)
Investment
1,346,814
1,346,814
42,700
54%
57,547
(856,715)
(300,169)
Maintenance and warranty
services of notebook PCs
90,156
90,156
136
100%
(3,097)
(20,160)
(18,034)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:313)
Table 9 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
(In Thousands of New Taiwan Dollars/ shares)
Original Investment Amount
December 31,
2021
112,000
December 31,
2020
42,000
Shares
9,100
Ending Balance
Percentage
of
Ownership
91%
Carrying
Value
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
58,858
(25,053)
(22,724)
127,026
109,837
4,648
28%
37,824
28,574
7,873
5,729,757
5,529,757
20,015
100%
(484,153)
(425,641)
(425,641)
2,636,051
2,636,051
90,820
100%
7,179,197
908,947
908,947
284,827
284,827
29,060
43%
682,558
32,744
14,204
295,000
295,000
29,500
100%
150,785
35,093
29,295
377,328
377,328
12,500
100%
228,858
43,721
43,721
943,922
943,922
31,253
35%
1,305,068
603,543
209,561
1,532,029
1,532,029
46,900
65%
(184,795)
632,364
516,481
3,340
1,575
3,340
100
100%
679,564
116,378
116,378
1,575
50
100%
1,304,552
12,658
12,658
489,998
199,999
10,000
100%
(37,303)
53,840
53,926
100,000
547,595
100,000
547,595
10,000
14,924
100%
21%
113,123
626,851
4,426
196,505
3,976
43,341
Investment
4,318,860
4,318,860
147,000
100%
6,580,283
(569,898)
(569,898)
246,860
246,860
15,000
50%
330,604
24,917
12,585
89,669
37
-
100%
86,855
(1,700)
(1,741)
60,000
60,000
20,000
33%
44,309
(46,608)
(15,543)
155,076
155,076
3,446
30%
144,270
(22,602)
(6,781)
279,202
279,202
8,192
4%
539,351
1,787,544
__________
88,293,659
Investor
Company
Investee
Company
Location
Main Businesses
and Products
The Company Hippo Screen Neurotech Co., Ltd. Taipei City
Infinno Technology Corporation
(“Infinno”)
Hsinchu
County
HengHao
Taipei City
BCI
CBN
Rayonnant
CRH
Acendant Private Equity
Investment Ltd. (“APE”)
Etrade
Webtek
Forever
UCGI
Palcom
Avalue
CORE
GLB
CGSP
ARCE
British Virgin
Islands
Hsinchu
County
Taipei City
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Taipei City
Taipei City
New Taipei
City
British Virgin
Islands
New Taipei
City
Poland
Taipei City
Raypal
Taipei City
Panpal
Arcadyan
Hsinchu City
Management & Consultant,
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
Manufacturing of PCs,
computer periphery devices,
and electronic components
Investment
R&D and sales of cable
modem, digital setup box, and
other communication products
Manufacturing and sales of
PCs, computer periphery
devices, and electronic
components
Investment
Investment
Investment
Investment
Investment
Manufacturing and retail sale
of computers and electronic
components
Selling of mobile phones
Manufacturing, processing,
and import and export business
of industrial motherboards
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 equipment and
materials import and
manufacturing
Allied Circuit
Taoyuan City Production and selling of PCB
148,263
148,263
2,927
6%
114,974
390,431
Gempal
Others
Arcadyan
Hsinchu City
boards
Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipment and
materials import and
manufacturing
306,655
306,655
9,279
4%
75,937
635,925
1,787,544
__________
6,573,057
Investment
gain(losses)
recognized by
Panpal
Investment
gain(losses)
recognized by
Panpal
Investment
gain(losses)
recognized by
Gempal
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:314)(cid:314)
Table 9 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Location
Main Businesses
and Products
December 31,
2021
December 31,
2020
Gempal
Allied Circuit
Taoyuan City Production and selling of PCB
53,645
53,645
Original Investment Amount
Ending Balance
Percentage
of
Ownership
6%
Carrying
Value
126,471
Net income
(losses) of
investee
390,431
Shares
3,220
Hong Ji
Others
Arcadyan
Hsinchu City
boards
Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipment and
materials import and
manufacturing
306,655
306,655
9,279
4%
175
635,925
1,787,544
Allied Circuit
Taoyuan City Production and selling of PCB
10,389
10,389
851
2%
28,554
390,431
Hong Jin
Arcadyan
Hsinchu City
boards
Telecommunication equipment
and apparatus manufacturing,
electronic parts and
components manufacturing,
restrained telecom radio
frequency equipment and
materials import and
manufacturing
131,942
131,942
4,609
2%
300,876
1,787,544
Just
CDH (HK)
Hong Kong
Investment
1,724,395
1,724,395
62,298
100%
7,336,510
2,033,586
CII
CPI
CII
Smart
AEI
MEL
MTL
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
255,902
255,902
9,245
100%
232,596
(469)
13,840
13,840
500
100%
831,308
2,720
28
28
1
100%
350
(3)
U.S.A
Sales and maintenance of LCD
TVs
27,680
27,680
1,000
100%
43,364
(491)
U.S.A
Investment
227,917
227,917
U.S.A
Investment
28
28
-
-
100%
188,891
25
100%
28
-
CIH
CIH (HK)
Hong Kong
Investment
2,070,533
2,070,533
74,803
100% 36,259,088
3,482,248
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
203,448
203,448
7,350
100%
98,697
373
28
28
1
100%
430,130
7,570
412,432
412,432
14,900
100%
412,895
-
141,168
141,168
5,100
51%
25,433
187
1,854,560
1,854,560
67,000
100%
221,043
(869,094)
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
Investment
gain(losses)
recognized by
Just
Investment
gain(losses)
recognized by
Just
Investment
gain(losses)
recognized by
Just
Investment
gain(losses)
recognized by
CII
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
Investment
gain(losses)
recognized by
HSI
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:305)
Table 9 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
HSI
Goal
Investee
Company
Main Businesses
and Products
Investment
December 31,
2021
351,536
December 31,
2020
351,536
Shares
12,700
Location
British Virgin
Islands
Original Investment Amount
Ending Balance
Percentage
of
Ownership
100%
Carrying
Value
304,117
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
12,379
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
1,854,560
1,854,560
67,000
100%
221,043
(869,094)
351,536
351,536
12,700
100%
305,603
12,379
BCI
CMI
British Virgin
Islands
Investment
2,237,098
2,237,098
80,820
100%
4,503,395
578,634
PRI
British Virgin
Islands
Investment
276,800
276,800
10,000
100%
2,675,803
330,312
CORE
BSH
British Virgin
Islands
Investment
4,068,960
4,068,960
147,000
100%
6,580,283
(569,898)
BSH
Mithera
Cayman
Islands
Investment
138,400
138,400
-
99%
129,444
(3,059)
HSI
CIN
British Virgin
Islands
Investment
1,024,160
1,024,160
37,000
46%
467,614
(856,715)
U.S.A
Manufaturing
226,421
-
-
1
100%
190,352
(35,101)
-
-
100%
-
-
100%
16,398
13,289
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
55,360
55,360
Webtek
Etrade
British Virgin
Islands
Investment
692,000
692,000
25,000
35%
(54,057)
632,364
Unicore
Raycore
Taipei City
Animal medication retail and
wholesale
40,692
25,500
588
100%
29,252
(1,629)
Arcadyan
Arcadyan Holding
British Virgin
Islands
Investment
2,219,782
2,359,732
64,780
100%
2,323,746
335,159
Arcadyan USA
U.S.A
Sales of wireless network
products
23,055
23,055
1
100%
162,359
83,123
Arcadyan Germany
Germany
Technology support and sales
of wireless network products
1,125
1,125
0.5
100%
76,914
8,474
Arcadyan Korea
Korea
Sales of wireless network
products
2,879
2,879
20
100%
11,899
(436)
Zhi-Bao
Taipei City
Investment
48,000
48,000
34,980
100%
415,117
6,825
TTI
Taipei City
R&D and sales of household
digital products
308,726
308,726
25,028
61%
371,174
(219,951)
Investment
gain(losses)
recognized by
HSI
Investment
gain(losses)
recognized by
IUE
Investment
gain(losses)
recognized by
Goal
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
BCI
Investment
gain(losses)
recognized by
CORE
Investment
gain(losses)
recognized by
BSH
Investment
gain(losses)
recognized by
BSH
Investment
gain(losses)
recognized by
BSH
Investment
gain(losses)
recognized by
Forever
Investment
gain(losses)
recognized by
Forever
Investment
gain(losses)
recognized by
Webtek
Investment
gain(losses)
recognized by
Unicore
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
Investment
gain(losses)
recognized by
Arcadyan
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:306)
Table 9 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
Investor
Company
Investee
Company
Arcadyan
AcBel Telecom
Location
Taipei City
Main Businesses
and Products
Investment
December 31,
2021
December 31,
2020
23,000
23,000
Shares
4,494
Original Investment Amount
Ending Balance
Percentage
of
Ownership
51%
(In Thousands of New Taiwan Dollars/ shares)
Carrying
Value
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
32,638
(121)
Arcadyan UK
UK
Technical support of wireless
network products
1,988
1,988
50
100%
4,206
793
Arcadyan AU
Australia
Sales of wireless network
products
1,161
1,161
50
100%
41,705
3,213
Arcadyan RU
Russia
Sales of wireless network
products
7,672
2,492
-
100%
5,856
(1,361)
CBN
Hsinchu
County
Sales of communication and
electronic components
11,925
11,925
533
1%
12,642
32,744
Arcadyan and
Zhi-Bao
Arcadyan Brasil
Brazil
Sales of wireless network
products
81,593
81,593
968
100%
(14,827)
(148)
Arcadyan India
India
Sales of wireless network
products
13,507
-
3,500
100%
11,389
(1,448)
Arcadyan
Holding
Sinoprime
British Virgin
Islands
Investment
804,104
527,304
29,050
100%
854,011
138,028
Arch Holding
British Virgin
Islands
Investment
304,784
304,784
35
100%
1,045,972
186,372
TTI
Quest
Samoa
Investment
33,216
33,216
1,200
100%
(64,119)
(96,963)
TTJC
Japan
Sales of household digital
electronic products
9,626
9,626
0.7
100%
3,945
(1,325)
Quest
Exquisite
Samoa
Investment
32,386
32,386
1,170
100%
(76,480)
(96,967)
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless
network products
802,720
525,920
-
100%
849,942
138,028
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
19%
311,536
32,744
257,454
257,454
8,651
41%
152,994
76,203
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
346,000
346,000
12,500
59%
228,858
76,203
87,220
87,220
3,151
100%
39,230
2,243
Rayonnant(HK)
Hong Kong
Investment
498,240
498,240
18,000
100%
335,238
73,960
(Note 2)
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
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Investment
gain(losses)
recognized by
Arcadyan
Holding
Investment
gain(losses)
recognized by
Arcadyan
Holding
Investment
gain(losses)
recognized by
TTI
Investment
gain(losses)
recognized by
TTI
Investment
gain(losses)
recognized by
Quest
Investment
gain(losses)
recognized by
Sinoprime
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. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:307)
Table 9 The information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):
(December 31, 2021)
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
HHT
HHA
Investee
Company
Main Businesses
and Products
Investment
December 31,
2021
1,429,235
December 31,
2020
1,429,235
Shares
46,882
Location
British Virgin
Islands
Original Investment Amount
Ending Balance
Percentage
of
Ownership
100%
Carrying
Value
(648,644)
Net income
(losses) of
investee
(476,081)
HHA
HHB
British Virgin
Islands
Investment
1,297,695
1,297,695
46,882
100%
(648,584)
(476,081)
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%
5,410
(271)
7,016
7,016
20
100%
6,022
(124)
Starmems
Hsinchu
County
R&D of MEMS microphone
related products
10,000
-
1,000
10%
9,706
(2,940)
FGH
Wah Yuen Technology Holding Ltd.
and its subsidiaries
Mauritius
Investment
2,484,432
2,484,432
95,862
37%
4,815,888
(62,723)
GLB
RBL
New Taipei
City
Detectors and test strip
-
6,500
-
0%
-
(334)
Mactech
Taiwan Intelligent Robotics
Company, LTD.
Taipei City
Manufacturing of equipment
43,200
43,200
2,160
17%
16,763
(17,477)
Share of
profits/losses of
investee
Note
Investment
gain(losses)
recognized by
HHT
Investment
gain(losses)
recognized by
HHA
Investment
gain(losses)
recognized by
CBN
Investment
gain(losses)
recognized by
CBN
Investment
gain(losses)
recognized by
CBN
Investment
gain(losses)
recognized by
FGH
Investment
gain(losses)
recognized by
GLB
Investment
gain(losses)
recognized by
Mactech
(Note 3)
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 subsidiary was incorporated on March 25, 2021.
Note 3: Liquidation was completed in July, 2021.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:308)
Table 10 Information on investment in Mainland China:
(December 31, 2021)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2021
1,024,160
Investment flows
Outflow
-
Inflow
-
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2021
1,024,160
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
689,977
100%
689,977
Book value
2,621,488
Accumulated
remittance of
earnings in
current
period
-
(In Thousands of New Taiwan Dollars/ shares)
Total amount of
paid-in capital
1,024,160
Method of
investment
(Note 1)
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
CST
Main businesses and
products
Manufacturing and
sales of monitors
Manufacturing and
sales of notebook PCs,
mobile phones, and
Digital products
Manufacturing of
notebook PCs
Research, manufacture
and sales of
communication
devices, mobile
phones, electronic
computer, smart
watch, and provide
related technology
service
Research &
development, and
manufacturing latest
electronic components,
precision cavity mold,
design and
manufacturing for
standard parts for
molds, and selling self
-produced products
Manufacturing of
notebook PCs
Maintenance and
warranty service of
notebook PCs
Production and
processing chip
resistors, 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(cid:414) 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
Manufacturing of
notebook PCs
Manufacturing and
sales of LCD TVs
Manufacturing of
notebook PCs
International trade and
distribution of
computers and
electronic components
-
-
553,600
(Note 2)
553,600
332,160
(Note 2)
332,160
260,395
(Note 2)
(Note 3)
-
-
-
68,467
(Note 2)
(Note 3)
-
27,680
(Note 2)
27,680
8,680
(Note 2)
(Note 3)
885,760
(Note 1)
368,974
-
-
-
-
-
-
-
-
-
-
553,600
(22,978)
100%
(22,978)
77,074
332,160
162,364
100%
162,364
4,795,313
555,435
100%
555,435
568,446
-
-
-
-
51%
-
(43,020)
-
27,680
27,737
100%
27,737
(158,184)
-
(19,533)
100%
(19,533)
(45,016)
368,974
256,101
43%
110,585
535,940
-
-
-
553,600
(Note 1)
40,690
-
-
40,690
175,713
48%
83,640
542,279
-
332,160
(Note 2)
332,160
334,928
(Note 1)
334,928
664,320
(Note 2)
664,320
38,752
(Note 2)
38,752
-
-
-
-
-
-
-
-
332,160
881,782
100%
881,782
8,676,307
334,928
61,872
100%
61,872
2,838,177
664,320
2,020,686
100% 2,020,686
22,323,113
38,752
1,442
100%
1,442
48,140
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:309)
Table 10 Information on investment in Mainland China:
(December 31, 2021)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2021
141,168
Investment flows
Outflow
-
Inflow
-
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2021
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
141,168
187
51%
96
Accumulated
remittance of
earnings in
current
period
-
Book value
57,161
(In Thousands of New Taiwan Dollars/ shares)
Total amount of
paid-in capital
276,800
Method of
investment
(Note 2)
Name of
investee
Sheng Bao Precision
Electronics (Taicang)
Co., Ltd.
CIJ
CDE
CIS
CEC
CMC
CEQ
Main businesses and
products
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
Changbao Electronic
Technology
(Chongqing) Co., Ltd.
Rayonnant (Taicang)
CCI Nanjing
CDCN
CWCN
Hanhelt
Arcadyan
SVA Arcadyan
Production and
marketing of
magnesium alloy
molding
Manufacturing and
sales of aluminum
alloy and magnesium
alloy products
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
R&D and
manufacturing of
electronic
communication
equipment
R&D and sales of
wireless network
products
431,808
(Note 2)
431,808
415,200
(Note 2)
(Note 3)
2,237,098
(Note 1)
2,237,098
2,214,400
(Note 2)
(Note 3)
-
-
-
-
22,144
(Note 2)
(Note 3)
-
276,800
(Note 1)
276,800
-
1,660,800
(Note 2)
317,102
498,240
(Note 2)
346,000
747,360
(Note 1)
608,960
160,544
(Note 1)
160,544
1,356,320
(Note 1)
525,920
55,360
(Note 1)
55,360
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
431,808
1,692,951
100% 1,692,951
2,235,113
-
1,692,304
100% 1,692,304
2,202,258
2,237,098
578,634
100%
578,634
4,503,395
-
-
578,669
100%
578,669
4,475,331
(51)
100%
(51)
22,152
276,800
330,312
100%
330,312
2,675,803
2,287,115
218,835
37%
80,137
5,443,063
317,102
(222,019)
37%
(81,303)
726,504
346,000
73,960
100%
73,960
335,779
608,960
(40,952)
100%
(40,952)
(930,657)
160,544
1,737
100%
1,737
87,829
525,920
373,471
100%
373,471
816,200
55,360
(476)
100%
(476)
2,380
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224,208
(Note 1)
509,866
-
(Note 7)
138,400
(Note 9)
371,466
6,442
100%
6,442
28,344
(Continued)
Compal Precision
Module (Jiangsu) Co.,
Ltd.
Manufacturing and
selling of magnesium
alloy injection molding
11,625,600
(Note 2)
2,287,115
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(cid:306)(cid:305)(cid:310)
Table 10 Information on investment in Mainland China:
(December 31, 2021)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2021
304,784
(Note 8)
31,832
Total amount of
paid-in capital
344,616
Method of
investment
(Note 1)
92,728
(Note 1(cid:739)
10)
1,107,200
(Note 1)
1,101,747
Name of
investee
CNC
THAC
HengHao
HengHao
Optoelectronic
Technology (Kunshan)
Co., Ltd.
(“HengHao Kunshan”)
Main businesses and
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
415,200
(Note 2)
179,893
-
(Note 12)
(ii) Limitation on investment in Mainland China:
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment
from Taiwan as
of December
31, 2021
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
304,784
186,372
100%
186,372
Accumulated
remittance of
earnings in
current
period
-
Book value
1,045,972
Investment flows
Outflow
-
Inflow
-
-
-
-
31,832
(96,967)
100%
(96,967)
(76,950)
1,101,747
(477,802)
100%
(477,802)
(775,079)
179,893
1,687
100%
1,687
126,264
-
-
-
Names of
Company
The Company
Arcadyan
HengHao
Accumulated Investment in Mainland China
as of December 31, 2021
Investment Amounts Authorized by
Investment Commission of Ministry of
Economic Affairs
15,017,424
(US$542,537)
21,254,309 (US$767,858)
(In Thousands of USD)
Limitation on investment in Mainland China by
Investment Commission of Ministry of Economic
Affairs
(Note 6)
(Note 5)
708,082
1,297,417
(US$25,581)
(US$46,872)
708,082 (US$25,581)
1,297,417 (US$46,872)
7,593,661
(Note 13)
Note 1:
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Note 10:
Note 11:
Note 12:
Indirectly investment in Mainland China through companies registered in the third region.
Indirectly investment in Mainland China through an existing company registered in the third region.
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.
The investment income (loss) was determined based on the financial report audited by the CPAs.
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.
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.
Arcadyan paid US$18,420 thousand and acquired 100% shares of SVA Arcadyan from Accton Asia through Arcadyan Holding in 2010.
Arcadyan paid US$8,561 thousand and acquired 100% shares of CNC from Just through Arcadyan Holding in 2007.
SVA Arcadyan decreased its capital amounting to US$15,000 thousand to offset accumulated losses in March 2009, and returned its capital amounting to
US$5,000 thousand on April 7, 2021.
Arcadyan’s subsidiary, TTI, obtained the control over THAC with US$1,150 thousand on February 28, 2013 (the date of stock transferring).
The amounts in New Taiwan Dollars were translated at the exchange rates at the balance sheet date or the average exchange rate.
The Company had an accumulated investment amounting to US$7,350 thousand in the previous years. In the first half of 2014, HengHao
paid the Company and LG US$3,184 thousand and US$3,315 thousand, respectively, for organization restructure, to obtain 100%
ownership of Lucom.
Note 13:
The net equity of HengHao is negative at December 31, 2021.
(iii) Significant transactions:
For the year ended December 31, 2021, 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”.