Stock Ticker 2324
2022 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 8, 2023
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
9
11
39
116
117
118
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
118
3.7 For the most recent year and as of the date of publication of the annual report, changes in
Shareholding of Directors, Supervisors, Managers and Major Shareholders
121
122
3.8 Relationship among the Top Ten Shareholders
3.9 Ownership of shares in Affiliated Enterprises
IV. Capital Overview
124
128
128
129
131
131
131
131
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
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
132
158
178
179
179
182
184
2
VI. Financial Information
185
189
195
196
196
196
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
197
198
199
199
200
201
204
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
205
237
237
237
237
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,
We sincerely thank all shareholders for your long-term support of Compal. 2022 was still a challenging year for most
of the enterprises! The global economy and industry environment were under severe changes during the year,
including the war, energy crisis, inflation, and continuous conflict between the U.S. and China. We faced difficult
situations from the shortage of supplies, port congestion, demand over supply at the beginning of the year to the
increasing inventory and decline of demand during the end of the year. In addition, the global economic momentum
was weak, causing great challenges to business operations. Nevertheless, Compal is able to maintain business stability
and continues to invest in innovation and prospective planning, in order to achieve the objective of long-term
competitiveness of the company. We would like to present the following summary of our financial and business results
for 2022 and the business outlook for 2023:
Financial and Business Results
Compal’s 2022 consolidated revenue was NT$1,073,246 million, a decline of 13% from last year. Nevertheless, with
continuous effort in the product mix and efficiency improvement, the annual gross margin increased to 3.8% an
increase of 3.4% from last year. The consolidated operating income was NT$9,219 million, and the net income after
tax attributable to the parent company was NT$7,288 million, a decline of 42% from last year, and the earnings per
share was NT$1.67.
As the world heads toward the post-pandemic era, the market demand for computers and consumer electronic
products has started to slow down in comparison to the last two years. As a result, the 5C product shipment of Compal
in 2022 also indicated a decline from last year to 94 million units. Fortunately, we have been able to actively respond
to such market change since the middle of last year through the measures of reduction of inventory and adjustment
of production capacity, thereby allowing the operation and capital management to maintain stable during such
downtime of the industry. In terms of the development of new businesses, Compal has been able to reach double-digit
growths in the revenues from the businesses of servers, automotive electronics, wearable devices, mobile phones and
5G communication devices, promoting our diversification to move forward stably and continuously. We believe that
these new businesses will be trend of the industry development and will also become the great support for continuous
growth of Compal.
Investment in Innovation and Business Planning
Under the economic downturn, we uphold the long-term perspective and continue to invest in innovation and
prospective business planning. Compal has participated in the German iF Design award for a long period of time, and
continues to achieve outstanding performance in the global enterprise innovation competition ranking. In 2022, both
the health care system developed by the medical team of Compal and the brainwave detection system developed by
the subsidiary have received the honor of national class award of “National Innovation Award”.
With regard to the business planning, Compal has launched numerous deep-rooted investment plans in Taiwan,
4
including the group’s headquarter smart innovation park at Beitou Shilin Technology Park in Taipei City, the medical
long-term care facility building at Ruifang of New Taipei City, and the PC and 5G AIoT R&D center officially established
in Kaohsiung City at southern Taiwan. While facing the trend of global supply chain diversification, to cope with the
customer demands, Compal has also accelerated investment planning in Vietnam. In 2022, we have acquired the land
use right of 40 ha of land at Thai Binh province, Vietnam, and we expect to establish the third factory of Compal in
Vietnam. All of the above are important projects for Compal to establish long-term competitiveness and to achieve
business objectives in a greater scale.
Corporate Sustainable Development
To strengthen corporate governance, to implement corporate social responsibility and to head toward the goal of
sustainability, Compal has established the Sustainability Committee under the board of directors in 2022. In addition,
tasks forces have also been established with respect to different aspects of environment (E), society (S) and governance
(G), in order to implement ESG works in daily operation of the company. With regard to the global 2050 net zero
emissions, Compal has also announced and established the medium and long term carbon reduction targets for the
company. Through the method of “big-leading-small”, we have started to promote the greenhouse gas inventory of
subsidiaries and to implement sustainability education and responsible supply chain management on the supply chain.
In 2022, Compal was selected and ranked to be one of the “Taiwan Top100 Sustainable Benchmark Enterprises” by the
Taiwan Institute for Sustainable Energy, and also received the honor of “Happiness Enterprise Award” presented by Job
Bank for three consecutive years. In addition, Compal has received the rating of A in the MSCI ESG Rating. Furthermore,
Compal has been selected to be one of the constituent stocks of FTSE4GOOD Index. All of above demonstrates the
public’s recognition on Compal’s continuous effort in sustainable operation.
Future Outlook and Plan
After three years of pandemic, countries around the world are gradually relaxing epidemic control measures, and
people’s live and industry economy are also recovering back to normal. Nevertheless, the global inflation pressure,
raising interest rates among countries and geopolitics continue to develop in 2023, bringing uncertainties to the
economy. For companies relying on export businesses, it will still be a challenging year. The market research institutions’
predictions on the economy and industry in 2023 are still conservative; however, the economy during the second half
of the year is expected to be better than the first half of the year. Despite the current economic downtime, we are still
optimistic about the development of new technologies and markets as innovative technologies are the key to recovery
and future growth.
While facing challenges, Compal will respond actively and seize opportunities. For 2023, the key business focus will be
to continue the long-term promotion of the four main aspects of “Diversity, Digitization, Automation, Team
Organization” in order to face the fast changing environment. In addition, we will further enhance the implementation
of “Innovation, Talent Cultivation, Execution”, in order to establish long-term competitive advantages. Although the
beginning of this year has been challenging, we expect that the business in 2023 will grow progressively, and the new
businesses of servers, automotive electronics, medical care and 5G communication devices will also develop further
stably. With regard to the sustainable development, we look forward to further extend our influence in order to expand
5
the concept and action of ESG to our customers and cooperating supply chain. In addition, we plan to actively
participate in the global initiatives, thereby responding to the expectation of all stakeholders on Compal and achieving
the long-term sustainable value of the company.
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:
2021
•
Selected to take part in the CDP climate change program for the 8th consecutive year (2014-2021) and
received an overall CDP rating of B- at the Management Level for 2021.
• 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.
• 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 9 consecutive years (2014-2022). In 2022,
received a score of B in the CDP climate change and were rated at the management level for the water
questionnaire.
• 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.
Selected as a constituent stock of “Taiwan High Salary 100 Index” and “Taiwan Employment 99 Index”.
Selected into the FTSE4GOOD Index and the FTSE4GOOD TIP Taiwan ESG Index.
• Ranked 4th in CommonWealth Magazine’s “Top-2000 Manufacturers”.
Ranked 1345th on the Forbes Global 2000.
Ranked 317th on the Fortune Global 500.
Ranked the Gold Award in the Technology R&D of 2022 Happiness Enterprise online voting by 1111.
The Company acquired Poindus Systems Corp. (Poindus) through tender offer to expand Industrial PC
•
7
business.
•
The Company signed the contract of “New Taipei City RuiFang District Medical & Long-Term Care
Facility BOT+BTO” with New Taipei City Government.
•
The Company obtained the land use rights of 40 ha (hectare) located in the Thai Binh province,
Vietnam to further expand the production in Vietnam.
The Company’s share capital reached TWD 44.1 billion in 2022.
The Company’s consolidated revenue reached TWD 1,073.2 billion in 2022.
•
•
2023
•
Kinpo-Compal Group Headquarter, located in Beitou Shilin Technology Park, was officially ground
breaking in February 2023.
•
•
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”.
• Won 17 awards at the 2023 “iF Design Awards”.
•
Selected into the“Taiwan Tech High Dividend Index”.
• Ranked among the top 21%-35% in the TWSE-listed companies in the 9th round of "Corporate
Governance Evaluation” organized by Taiwan Stock Exchange and Taipei Exchange.
• Ranked 6th 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 May 8, 2023)
Shareholders
Board of Directors
President’s Office
Remuneration Committee
Audit Committee
Risk Management 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
ESG 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
Risk Management Committee
Implements risk management related affairs
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
Implements preventive measures against insider trading
Promotes and executes CSR-related affairs
Implementing a comprehensive occupational health and safety program
ESG Office
Implements sustainability-related plans
PCBG 1
PCBG 2
GOBG
SDBG
PCOBG
Responsible for the R&D, production, quality control and the sale of PC
products
Responsible for the R&D, production, quality control and the sales of
non-notebook products.
Responsible for production, quality control, and worldwide operation
affairs
Responsible for the R&D, production, quality control, and the sale of
smart devices
Responsible for production and quality control of 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 election
date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
(%)
Chairman
Sheng-Hsiung
Hsu
Male
66-80
2021.8.27
3
years
1984.04.16
8,975,401
0.20%
8,975,401
0.20%
8,975,401
0.20%
17,107,025
0.39%
Vice-Chairman
Jui-Tsung Chen
Male
66-80
2021.8.27
3
years
1992.04.30
35,352,587
0.80%
35,352,587
0.80%
35,352,587
0.80%
1,069,405
0.02%
Director
Binpal
Investment Co.,
Ltd.
Representative:
Wen-Being Hsu
Director
Kinpo
Electronics, Inc.
-
Male
81-90
-
Representative:
Chieh-Li Hsu
Male
36-50
Director
Charng-Chyi Ko
Male
81-90
Director
Sheng-Chieh Hsu
Male
66-80
2018.6.22
5,000,000
0.11%
5,000,000
0.11%
5,000,000
0.11%
1984.04.16
5,000,000
0.11%
5,001,000
0.11%
5,001,000
0.11%
1990.06.22
151,628,692
3.44%
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%
4,117,569
0.09%
631
0.00%
2021.8.27
3
years
2021.8.27
3
years
3
2021.8.27
years 1984.04.16
7,896,867
0.18%
7,896,867
0.18%
7,896,867
0.18%
30,645
0.00%
3
2021.8.27
years 1997.05.29
9,204,201
0.21%
9,204,201
0.21%
9,204,201
0.21%
8,152,928
0.18%
Honorary Doctorate,
National Taiwan Normal
University
Chair of Kinpo Electronics,
Inc.
Honorary Doctorate,
National Cheng Kung
University
Chair of Arcadyan
Technology Corp.
National Tao-Yuan Sr.
Vocational Agricultural and
Industrial School
Director of BAOTEK, Inc.
Master of International
Business, Waseda
University, Japan
Chair and President of
AcBel Polytech Inc.
Bachelor of Business Dept.,
National Taiwan University
PhD, Lincoln University, USA
Chair of Taiwan Biotech Co.,
Ltd.
Bachelor of Architectural
Dept., Tam- Kang University
Director of Kinpo
Electronics Inc.
April 23, 2023
Spouse or relatives of second degree or
closer acting as Directors, Supervisors, or
department heads
Title
Name
Relationship
Selected
Current
Position at
COMPAL and
Other
Companies
(Note 5)
Director
Director
Sheng-Chieh
Hsu
Chieh-Li Hsu
Brother’s
father and
son
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
Chairman
Sheng-Hsiung
Hsu
father and
son
(Note 5)
N/A
N/A
N/A
(Note 5)
Chairman
Sheng-Hsiung
Hsu
Brothers
11
Title/
Name/
Nationality (Note
1, 2)
Gender/
Age
Elected
Date
Term
First
Elected
Date
Shareholding at election
date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
(%)
Director
Yen-Chia Chou
Male
66-80
2021.8.27
3
years
1987.06.13
8,022,874
0.18%
8,022,874
0.18%
8,022,874
0.18%
2,502,768
0.06%
Director
Chung-Pin Wong
Male
51-65
2021.8.27
3
years
2007.06.15
6,618,618
0.15%
6,618,618
0.15%
6,618,618
0.15%
1,398
0.00%
Director
Chiung-Chi Hsu
Male
51-65
2021.8.27
3
years
1994.04.23
2,117,731
0.05%
2,117,731
0.05%
2,117,731
0.05%
30,000
0.00%
Director
Ming-Chih Chang
Male
51-65
2021.8.27
Director
Anthony Peter
Bonadero
Male
51-65
2021.8.27
Director
Sheng-Hua Peng
Male
51-65
2021.8.27
3
years
3
years
3
years
Independent
Director
Min-Chih Hsuan
Male
66-80
2021.8.27
3
years
Independent
Director
Duei Tsai
Male
66-80
2021.8.27
3
years
2018.6.22
1,919,489
0.04%
1,919,489
0.04%
1,919,489
0.04%
0
0.00%
2018.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
2018.6.22
835,000
0.02%
835,000
0.02%
835,000
0.02%
0
0.00%
2012.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
2012.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
12
Bachelor of Geology Dept.
National Taiwan University
Director of Kinpo
Electronics Inc.
Master of Management
Science, National Chiao-
Tung University
Chair of Compal Broadband
Networks, Inc.
Master of Golden Gate
University, San Francisco,
USA
Director of I PAO Bearing
Co., Ltd.
Electrical Engineering Dept.,
Ming Chi Institute of
Technology
Director of Mactech Co.,
Ltd.
Texas A&M University
Executive Vice-President of
Auscom Engineering Inc.
Master of Electronics
Engineering, National
Taiwan University
Director of Arcadyan
Technology Corp.
Bachelor of Electrical
Engineering Dept., National
Chiao Tung University
Chair and President of
United Microelectronics
Corp.
Ph.D., Electrical
Engineering, National
Taiwan University
Independent Director of
Selected
Current
Position at
COMPAL and
Other
Companies
Spouse or relatives of second degree or
closer acting as Directors, Supervisors, or
department heads
Title
Name
Relationship
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
(Note 5)
N/A
N/A
N/A
Title/
Name/
Nationality (Note
1, 2)
Gender/
Age
Elected
Date
Term
First
Elected
Date
Shareholding at election
date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
(%)
Selected
Current
Position at
COMPAL and
Other
Companies
Spouse or relatives of second degree or
closer acting as Directors, Supervisors, or
department heads
Title
Name
Relationship
Independent
Director
Wen-Chung Shen
Male
66-80
2021.8.27
3
years
1998.4.8
2,836,000
0.06%
2,836,000
0.06%
2,836,000
0.06%
2,315,000
0.05%
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. Wen-Chung Shen served as Director from April 22, 1998 to June 22, 2018.
4. Director Sheng-Chieh Hsu held 2,839,000 shares (0.06%) through proxies.
Taiwan High Speed Rail
Corporation
Bachelor of Electrical
Engineering Dept., National
Taiwan University
Director of Compal
Electronics, Inc.
(Note 5)
N/A
N/A
N/A
5. Selected Current Positions as below:
Title
Name
Selected Current Positions
Chairman: Kinpo Electronics, Inc., Cal-Comp Electronics(Thailand) Public Company Limited, Cal-Comp Electronics and communications Co., 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 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., 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 Precision (Thailand) 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
13
Chairman Sheng-Hsiung Hsu
Title
Name
Selected Current Positions
International Ltd., Smart International Trading Ltd.
Group CEO: Kinpo Electronics, Inc.
President: Kinpo Group Management Consultant Company, Cal-Comp Precision Holding Co., Ltd.
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, Vice
Chair of Straits Exchange Foundation, Vice-Chair of Sinocon Industrial Standards Foundation
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., River Regeneration and Rejuvenation
Biotechnology Co. Ltd., Kinpo&Compal Group Assets Development Corporation, Compal Ruifang Health Assets Development Corporation, Ray-
Kwong Medical Management Consulting Co., Ltd., Compal System Trading (Kunshan) Co., Ltd., Compal Smart Device (Chongqing) Co., Ltd.,
Director: 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 Americas (US) Inc., Compal Display Holding
(HK) Limited, Compal Electronics International Ltd., Compal Electronics N.A. Inc., Compal Electronics (Holding) Ltd., Compal International Ltd.,
Compal 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.
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., Yuanbao Investment Co., Ltd.
Director: AcBel Polytech Inc., CastleNet Technology Inc., Crownpo Technology Inc., iHELPER Inc., Norm Pacific Automation Corp., Teleport Access Services,
Inc., XYZprinting, Inc., Kinpo Group Management Consultant Company, Cal-Comp Asset Management, Inc., Prudence Venture Investment Corp.,
14
Vice
Chairman
Jui-Tsung Chen
Director
Director
Representative of
Binpal Investment
Co., Ltd.:
Wen-Being Hsu
Kinpo Electronics,
Inc.
Title
Name
Selected Current Positions
NTNU Innovation Investment Holding Company
Representative of
Kinpo Electronics
Inc.: Chieh-Li Hsu
Chairman: AcBel Polytech Inc., AcSacca Solar Energy Co., Ltd., AcTel Power Co.,Ltd., AcGile EV Power Inc., KangYang New Energy Co., Ltd., AcRay Energy Co.,
Ltd., AcTek Energy Co., Ltd., AcLeap Power Inc., Sumray Power Company, 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: CastleNet Technology Inc., The Eslite Spectrum Corporation, ARCE Therapeutics, Inc., Raypal Biomedical Co., Ltd., VesCir Ltd., QBit Semiconductor
Ltd., Shangbao Enterprise Inc., XYZprinting, Inc., Melvita Taiwan Ltd., Ginza Sakoh Taiwan Co., Ltd., Kinpo&Compal Group Assets Development
Corporation, Compal Ruifang Health 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 Industria De Semicondutores S.A., Cal-Comp Precision (Malaysia) SDN. BHD., Cal-Comp Precision
(Thailand) Limited, 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
Remuneration Committee Member: Winbond Electronics Corporation
Audit Committee Member: Winbond Electronics Corporation
Chief Strategy Officer: Cal-Comp Electronics and Communications Co., Ltd.
President: AcBel Polytech Inc., Kinpo&Compal Group Assets Development Corporation, AcBel Electronic(Dong Guan) Co., Ltd., AcBel Electronic (Wuhan) Co.,
Ltd., Acbel (USA) Polytech Inc., Acbel Polytech Philippines, Inc.
Other: Vice-Chair of Taiwan Electrical and Electronic Manufacturers' Association, Director of Chinese National Federation of Industries, Director of Importers
and Exporters Association of Taipei, Director of The Third Wednesday Club
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.,
Long Yee Investment Co. Ltd., Taiwan Venture Capital Co., Ltd., Yinfeng International, Inc., Taiwan Chariston AMC Corp., Ltd, Twin Luck Global
Company Ltd.
Director Charng-Chyi Ko
Vice-Chairman: OmniHealth Group, Inc.
Director: Kinpo Electronics, Inc., Formosan Union Chemical Corp., Chang Yao Technology Inc., 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
15
Title
Name
Selected Current Positions
Director
Sheng-Chieh Hsu
Development Corporation, Kinpo Electronics (China) Co., Ltd., Dongguan Kaipo Electronics Co., Ltd., Kinpo International Ltd.
Chairman: Integrate Investment Corp.
Director: Cal-Comp Electronics (Thailand) Public Company Limited, Cal-Comp Electronics and communications Co., Ltd., Kinpo&Compal Group Assets
Director
Yen-Chia Chou
Director
Chung-Pin Wong
Director
Chiung-Chi Hsu
Director Ming-Chih Chang
Supervisor: Gempal Technology Corp., Panpal Technology Corp., Hong Ji Capital Co., Ltd., Hong Jin Investment Co., Ltd.
Chairman of Development Executive Committee: Kinpo&Compal Group Assets Development Corporation
Chairman: Sceptre Industry Co., Ltd., Mega Industry Co., Ltd.
Director: 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., Compal USA (Indiana), 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, Compal Ruifang Health 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., Auscom Engineering Inc.,
Bizcom Electronics, Inc., Compal Connector Manufacture Ltd., HengHao Holdings A Co., Ltd., HengHao Holdings B Co., Ltd., Primetek Enterprises Ltd.,
Shennona Corporation, Sirqul Inc.
Supervisor: Hong Ya Technology Corporation
President: Compal Electronics, Inc., Gempal Technology Corp., Panpal Technology Corp., Hong Ji Capital Co., Ltd., Hong Jin Investment Co., Ltd.
Sustainability Committee Member: Compal Electronics, Inc.
Risk Management Committee Member: Compal Electronics, Inc.
Chairman: Full Power Investment Co., Ltd.
Director: E-Bow Bearing Co., Ltd., Juan Hsin Bao Hardware co., Ltd., Jin Yongxiang co., Ltd.
Director: Mactech Co., Ltd., Panpal Technology Corp., Kunshan Botai Electronics Co., Ltd., CGS Technology (Poland) Sp. z o.o.
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
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.
16
Title
Name
Director
Anthony Peter
Bonadero
Director
Sheng-Hua Peng
Independent
Director
Min Chih Hsuan
Independent
Director
Duei Tsai
Selected Current Positions
Executive Vice-President: Compal Electronics, Inc.
Executive Vice-President: Auscom Engineering Inc.
Chief Sustainability Officer of Sustainable Committee: Compal Electronics, Inc.
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., 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: SIPP, Inc., Meribank Biotech Co., Ltd., Meridigen Biotech Co., Ltd., Htsensortek 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.
Risk Management Committee Member: Compal Electronics, Inc.
Director: Daai Satellite TV Co., Ltd.
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., Starlux Airlines Co., Ltd.
Audit Committee Member: Compal Electronics, Inc., Taiwan High Speed Rail Corporation, TTY Biopharm Company Ltd., Starlux Airlines Co., Ltd.
Sustainability Committee Member: Compal Electronics, Inc., TTY Biopharm Company Ltd.
Risk Management Committee Member: Compal Electronics, Inc.
Independent
Director
Wen-Chung Shen
Chairman: Her Tuo Co., Ltd.
Remuneration Committee Member: Compal Electronics, Inc.
Audit Committee Member: Compal Electronics, Inc.
Sustainability Committee Member: Compal Electronics, Inc.
Risk Management 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. (8.29%), Panpal Technology Corp. (4.64%), GEBO Limited (3.43%), Lai-Shun Shen Tsai (2.79%), Ho Bao Investment Co., Ltd.
(2.00%), Ruey Shinn Co., Ltd. (1.87%), Li Chu Tsai (1.45%),Kun-Chao Shen (1.44%), UBS Taipei Branch is subject to Li Chu Tsai trust property account
(1.34%), JPMorgan Chase Bank Taipei Branch is entrusted with the safekeeping of Van Gard Emerging Market Stock Index Fund investment account of
the manager of Van Gard Group (1.24%)
April 1, 2023
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.
Major shareholders of corporate shareholders
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%)
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
directorships of other
public firms 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
1
Conditions
Name
Professional Qualification & Experience
Independence Status of Independent Directors
No. of concurrent
Independent
directorships of other
public firms 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
directorships of other
public firms held
Director
Anthony Peter Bonadero
Director
Sheng-Hua Peng
Director
Min Chih Hsuan
Director
Duei Tsai
Director
Wen-Chung Shen
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, President and Honorary Vice Chairman 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.
PhD, Graduate Institute of Electrical Engineering, National Taiwan University
Independent Director of Taiwan High Speed Rail Corporation, TTY Biopharm Company
Ltd.and Independent Director for Public Welfare of Starlux Airlines 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.
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.
N/A
N/A
˙Compliance with independence criteria (note)
˙The person or their 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 or their 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
˙Compliance with independence criteria (note)
˙Number of shares of the Company and
shareholding ratio of the person or their
spouse or relatives within the second degree
of kinship (or in the name of others):
5,151,000 shares, 0.11%
Note: Independent Directors shall indicate the fulfilment of independence criteria.
21
• These criteria include but are 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 a position as a director, supervisor or employee of any company 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 or their 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
Leadership
and decision-
making
Knowledge
of the
industry
International
market
perspective
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
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Industry
Experience
(Note)
Information
Technology
Information
Technology
Consumer
Discretionary
Information
Technology
Healthcare
Industrial
Information
Technology
Information
Technology
Materials
Information
Technology
Information
Technology
Information
Technology
Information
Technology
Industrial
Information
Technology
Note: The GICS Level 1 sectors: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Healthcare, Financials, Information Technology, Communication Services, Utilities, and Real
Estate.
23
Age
Gender
Country of Citizenship
Employee Status
shareholder
Seniority of Independent Directors
Item
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
The company
The companies’ subsidiaries
Less than 3 year
More than 9 years
Director
Independent Director
Number of people
1
5
6
12
0
11
1
4
2
11
1
-
-
%
7%
33%
40%
80%
0%
73%
7%
27%
13%
73%
7%
-
-
Number of people
0
0
3
3
0
3
0
0
0
1
2
1
2
%
0%
0%
20%
20%
0%
20%
0%
0%
0%
7%
13%
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:
The number of Directors holding concurrent positions as the Company Managers not exceeding one-third of the Board seats.
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.
Management goal
Implementation
Implemented
Implemented
Implemented
When the company plans to re-elect the next term of directors, the number of independent directors shall not be less than 1/3 of all directors. In addition, at least one female
director shall serve, helping achieve the specific goal of diversification of the Company's Directors member.
2.
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 roles 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
Honorary Doctorate, National Cheng
Jui-Tsung Chen
2018.07.04
35,352,587
0.80%
1,069,405
0.02%
0
0.00%
Kung University
President
Chung-Pin Wong
2018.07.04
6,618,618
0.15%
1,398
0.00%
0
0.00%
Chair of Arcadyan Technology Corp.
Master of Management Science, National
Chiao-Tung University
Chair of Compal Broadband Networks,
Inc.
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%
0
0
0
0
Electrical Engineering Dept., Ming Chi
0.00%
University of Technology
Director of Mactech Co., Ltd.
Master of Electronics Engineering,
0.00%
National Taiwan University
Director of Arcadyan Technology Corp.
National Chiao Tung University EMBA
April 23, 2023
Spouse or relatives of second degree
or closer acting as managers
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
Selected
Current
Position at
COMPAL and
Other
Companies
Refer to
Page14
Refer to
Page 16
Refer to
Page 16-17
Refer to
Page 17
Kuo-Chuan Chen
2007.01.01
685,823
0.02%
10,924
0.00%
0
0.00%
0.00%
Vice-Chair of HengHao Technology Co.
(Note 4)
N/A
N/A
N/A
Ltd.
Master of Electrical Engineering, National
0.00%
Taiwan University
(Note 4)
N/A
N/A
N/A
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
Director of General Life Biotechnology
Co.,
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
Senior Vice-
Wen-Da Hsu
2014.02.27
1,333,000
0.03%
0.00% Media Administration Dept., Shih Hsin
(Note 4)
N/A
N/A
N/A
Chyou-Jui Wei
2010.03.18
0
0.00%
0.00%
0
0
0
0
0.00%
0.00%
25
Chief Strategy
Officer
Executive Vice-
President
Executive Vice-
President
Executive Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Title
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
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
(%)
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
285,574
0.01%
Bor-Heng Chen
2020.05.13
280,010
0.01%
0
0
0
0
0
0
0.00%
0
0.00%
0.00%
0
0.00%
0.00%
0.00%
0.00%
0
0
0
Selected
Current
Position at
COMPAL and
Other
Companies
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
(Note 4)
N/A
N/A
N/A
Major career/academic achievements
University
Senior Vice-President of Compal
Communication Inc.
Master of Industrial Design, Cranbrook
Academy of Art
Director of Design and Customer Affairs,
Philips (Hong Kong)
Bachelor of Electrical Engineering Dept.,
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
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
0.00%
0.00%
0.00%
Operations Management, Columbia
N/A
N/A
N/A
N/A
0.00%
0
0.00%
Fu Jen Catholic University
N/A
N/A
N/A
N/A
Chung-Hsing Tan
2020.08.12
0
0.00%
5,320
0.00%
0
0.00%
University
Master of Electrical Engineering, Tatung
University
Vice-President of Compal Communication
Inc.
Tamkang University PhD of Finance
(Note 4)
N/A
N/A
N/A
Ta-Chun Wang
2016.06.29
204,200
0.00%
4,119
0.00%
0
0.00%
Managing Vice-President of Shanghai
(Note 4)
N/A
N/A
N/A
26
Real Industrial Co., Ltd.
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%
Selected
Current
Position at
COMPAL and
Other
Companies
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
N/A
N/A
N/A
N/A
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
Vice-President
Ching-Hsiung Lu
2003.01.01
7,237,007
0.16%
650,000
0.01%
0
0.00%
University
(Note 4)
N/A
N/A
N/A
Chief
Information
Security Officer
and Vice-
President
Po-Tang Wang
2007.07.10
559,548
0.01%
486
0.00%
0
0.00%
Director Compal Communication Inc.
Bachelor of Computer Science and
Information Engineering Dept., National
Taiwan University
President of Vibo Telecom Inc.
National Taipei Institute of Technology
(Note 4)
Chief
Strategy
Officer
Jui-Tsung
Chen
Relative by
affinity
Vice-President
Tzong-Ming
Wang
2009.07.16
283,184
0.01%
Vice-President
Fu-Chuan Chang
2009.07.16
160,662
0.00%
Vice-President
Yong-Ho Su
2011.07.01
410,401
0.01%
Vice-President
Jyh-Shyan Liang
2011.10.31
75,000
0.00%
Vice-President
Yi-Yun Chang
2014.08.13
140,246
0.00%
0
0
0
0
0
0.00%
0.00%
0.00%
0
0
0
0.00%
Head of Research and Development,
N/A
N/A
N/A
N/A
CLEVO Company
0.00%
0.00%
National Chin-Yi University of Technology
Production Manager, ADI Corp
Department of Electrical Engineering,
National Taipei Institute of Technology
Vice-President of Arima Photovoltaic and
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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.
0.00%
0
0.00%
0.00%
0
0.00%
27
(Note 4)
N/A
N/A
N/A
N/A
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
Position at
COMPAL and
Other
Companies
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
Vice-President
Hsin-Kung Mao
2014.11.13
500,714
0.01%
Vice-President Shih-Hong Huang 2016.02.24
0
0.00%
Vice-President
Yi-Chiang Chiu
2016.02.24
280,000
0.01%
Vice-President
Jui-Chun Shyur
2016.05.11
Peng-Hong Chan 2018.05.09.
0
0
0.00%
0.00%
0
0
0
0
0
0.00%
0.00%
0.00%
0.00%
0
0
0
0
Master of Business Administration,
0.00%
University of Lincoln
(Note 4)
N/A
N/A
N/A
Vice-Chairman of Poindus System Corp.
Master in Control Engineering, National
0.00%
Chiao Tung University
N/A
N/A
N/A
N/A
0.00%
0.00%
Director of Coretronic Corporation
Master of Earth Sciences, National
Central University
Ph.D., Electrical Engineering, National
Taiwan University
President of Photonics Industries
International, Inc.
Master of Cornell University Law School,
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.00%
0
0.00%
USA
N/A
N/A
N/A
N/A
Chief Legal
Officer and
Vice-President
Corporate
Governance &
Accounting
Officer and
Vice-President
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
0.00%
Vice-President
Tu-Chuan Tu
2018.12.01
593,081
0.01%
62,105
0.00%
Vice-President
Chang-Chieh
Tien
2018.12.01
403
0.00%
Financial Officer
and
Vice-President
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%
28
CSO, Pou Chen Group
Bachelor of Accounting Dept., Fu Jen
0.00%
Catholic University
(Note 4)
N/A
N/A
N/A
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%
Bachelor of Transportation Management
Dept., National Chiao Tung University
Master of Accounting, George
Washington University
Financial officer of Arcadyan Technology
Corp.
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
0.00% Bachelor of Science and Technology
N/A
N/A
N/A
N/A
0
0
0
0
0
0
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
(%)
Selected
Current
Position at
COMPAL and
Other
Companies
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
Major career/academic achievements
Dept., IOWA State University
Mechanical Engineering, National
Vice-President
Hou-Chun Liu
2021.11.11
Vice-President Wu-Ching Chi
2022.02.10
0
0
0.00%
0.00%
0
0
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
0
0
0
0
0.00%
Kaohsiung University of Applied Sciences
N/A
N/A
N/A
N/A
COO of SuperAlloy Industrial Co., LTD
0.00% Master of Computer Engineering, NCTU
N/A
N/A
N/A
N/A
Master of Electrical Engineering,
0.00%
Columbia University, NY
(Note 4)
Chief
Strategy
Officer
Jui-Tsung
Chen
father and
son
N/A
N/A
N/A
N/A
0.00%
Director of Raypal Biomedical Co., Ltd.
Master of EMBA, National Central
University
Master of Business Administration,
0.00%
Nanyang Technological University,
N/A
N/A
N/A
N/A
0.00%
0
0.00%
Singapore
Master of Technology Management,
National Tsing Hua University
Internal Control Director of Tingyi
(Cayman Islands) Holding Corp.
N/A
N/A
N/A
N/A
Note: 1. Except for Senior Vice-President Peng Kuee Lau, a Malaysian national, all managers are ROC nationals; except for Senior Vice-President Chyou-Jui Wei, all 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 Chiao-Lie Huang, Wei-Chia Wang and Yau-De Chiou resigned in 2022. Vice Presidents Jen-Liang Lin transferred in 2023.
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
29
Title
Name
Senior Vice-
President
Chyou-Jui Wei
Selected Current Positions
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 Investment Holding Corp., Compal Electronic Technology (Chongqing) Co., Ltd., Compal Precision Module(Jiangsu)
Co., Ltd., ShengBao Precision Electronics (Taicang) Ltd., Rayonnant Technology (HK) Holdings Limited, Ju Teng Electronic Technology
(Vietnam) Limited., Compal Americas (US) Inc., Compal Electronics N.A. Inc.
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.
President: Compal Ruifang Health Assets Development Corporation
Independent Director: SYNergy ScienTech Corp., Visco Vision Inc.
Remuneration Committee Member: SYNergy ScienTech Corp., Visco Vision Inc.
Audit Committee Member: SYNergy ScienTech Corp., Visco Vision Inc.
Wen-Da Hsu
Director: HANHELT Communications (Nanjing) Co., Ltd.
Shi-Kuan Chen
Director: Rayonnant Technology Co., Ltd., Rayonnant Technology (Taicang) Co., Ltd.
Min-Tung Weng
Director: Auscom Engineering Inc.
President: Auscom Engineering Inc.
Sheng-Hung Li
Deputy Sustainability Officer of Sustainable Committee: Compal Electronics, Inc.
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Chung-Hsing Tan
Ta-Chun Wang
Vice-President
Ching-Hsiung Lu
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., Compal Americas (US) Inc., Compal Electronics N.A. Inc.
President: Compal USA (Indiana), Inc., Compal Americas (US) Inc., Compal Electronics N.A. 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
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
Information Security Committee Member: 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
Cheng-Chiang Wang
Financial Officer
and Vice-
President
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.
Chairman: Chia Dah Knitting Co., Ltd.
Vice-Chairman: Poindus System Corp.
Director: Avalue Technology Inc., UNICOM GLOBAL, INC., Ruixing Investment Co., Ltd., Compalead Electronics B.V., Mexcom Electronics, LLC,
Mexcom Technologies, LLC
Chief Operating Officer: Poindus Systems Corp.
Director: Allied Circuit Co., Ltd., Poindus System Corp., Zhi-Bao Technology Corporation, HengHao Technology Co. Ltd., Palcom International
Corporation, Infinno Technology Corp., UniCore Biomedical Co., Ltd., 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 Ruifang Health Assets Development Corporation, Compal System Trading (Kunshan) Co.,
Ltd., Compower Global Service Co., Ltd., HengHong Optoelectronics Technology (Kunshan) Co., Ltd., Compal Smart Device
(Chongqing) Co., Ltd.
Deputy Sustainability Officer of Sustainable Committee: Compal Electronics, Inc.
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., River Regeneration and Rejuvenation Biotechnology 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
and 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 and 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 39,709
39,709
2,284
3,068
0.5762%
0.5869%
72,935
122,109
784
784
21,080
0
21,080
0
1.8769%
2.5623%
30,787
41,993
42.777
136.792
186,750
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
Min-Chih Hsuan
7,675
7,675
7,675
7,675
Duei Tsai
7,200
7,200
0
0
0
0
475
475
0.1053%
0.1053%
0
0
0
0
0
0
0
0
0.1053%
0.1053%
0
Wen-Chung Shen
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 participation in and contribution to the Company’s business and benchmarks within 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
Note: 1. In 2022, the Company made pension contributions totaling TWD 784,000 (including TWD 324,000 under the new system and TWD 460,000 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 784,000 (including TWD 324,000 under the new system and TWD 460,000 under the old system).
32
2. The distribution of directors' remuneration, was approved by the Board of Directors meeting on March 15, 2023. The remuneration amount of the Directors aforementioned is not determined fully until authorized by a meeting of the Board of
Directors.
▓ 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 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
2 (Note 1)
2 (Note 5)
2 (Note 9)
11 (Note 2)
3 (Note 3)
1 (Note 4)
11 (Note 6)
3 (Note 7)
1 (Note 8)
8 (Note 10)
2 (Note 11)
1 (Note 12)
2 (Note 13)
2 (Note 14)
1 (Note 15)
7 (Note 16)
1 (Note 17)
2 (Note 18)
3 (Note 19)
3 (Note 20)
Total
17
17
17
17
Note:
1. Wen-Being Hsu,Chieh-Li Hsu-2 positions
2.
3.
4.
5. Wen-Being Hsu,Chieh-Li Hsu-2 positions
6.
Sheng-Chieh Hsu,Yen-Chia Chou,Chung-Pin Wong,Chiung-Chi Hsu,Ming-Chih Chang,Sheng-Hua Peng,Min Chih Hsuan, Duei Tsai, Wen-Chung Shen, Anthony Peter
Bonadero,Kinpo Electronics, Inc.-11 positions
Jui-Tsung Chen,Charng-Chyi Ko,Binpal Investment Co., Ltd.-3 positions
Sheng-Hsiung Hsu-1 position
Sheng-Chieh Hsu,Yen-Chia Chou,Chung-Pin Wong,Chiung-Chi Hsu,Ming-Chih Chang,Sheng-Hua Peng,Min Chih Hsuan, Duei Tsai, Wen-Chung Shen, Anthony Peter
Bonadero,Kinpo Electronics, Inc.-11 positions
Jui-Tsung Chen,Charng-Chyi Ko,Binpal Investment Co., Ltd.-3 positions
Sheng-Hsiung Hsu.-1 position
7.
8.
9. Wen-Being Hsu,Chieh-Li Hsu-2 positions
10. Sheng-Chieh Hsu,Yen-Chia Chou,Chiung-Chi Hsu,Min Chih Hsuan, Duei Tsai, Wen-Chung Shen, Anthony Peter Bonadero,Kinpo Electronics, Inc.-8 positions
11. Charng-Chyi Ko,Binpal Investment Co., Ltd.-2 positions
12. Sheng-Hsiung Hsu-1 position
13. Ming-Chih Chang,Sheng-Hua Peng -2 positions
33
Jui-Tsung Chen,Chung-Pin Wong -2 positions
14.
15. Wen-Being Hsu-1 position
16. Chieh-Li Hsu,Yen-Chia Chou,Chiung-Chi Hsu,Min Chih Hsuan, Duei Tsai, Wen-Chung Shen, Kinpo Electronics, Inc. -7 positions
17. Binpal Investment Co., Ltd.-1 position
18. Charng-Chyi Ko,Sheng-Chieh Hsu-2 positions
19. Sheng-Hsiung Hsu,Ming-Chih Chang,Sheng-Hua Peng-3 positions
20.
Jui-Tsung Chen,Chung-Pin Wong,Anthony Peter Bonadero-3 positions
2. Remuneration of Supervisors: Not Applicable (The Company adopts an Audit Committee system)
3. Remuneration of the President and Vice-Presidents
Salary (A)
Pension (B)
Bonus and
special allowances (C)
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
44 employees
including CSO Jui-
Tsung Chen
(Note1)
131,458
137,641
5,925
5,925
206,935
207,509
90,620
0
90,620
0
Unit: TWD 1,000; Thousand shares; %
Sum of A, B, C and D and 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)
434,938
5.96763%
441,695
6.06034%
371
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 Chiu, Jui-Chun Shyur, Peng-Hong Chan, Cheng- Chiang Wang, Cheng-Hui Su, Tu-Chuan Tu, Chang-Chieh Tien, Guo-Dung Yu, Peng Kuee Lau,
Hou-Chun Liu, Wu-Ching Chi, Hsin-Chung Chen, Jue-Teng Chang, Choo-Tain Chiu,Wei-Chia Wang, Yau-De Chiou, Liang-Jen Lin- 27 positions
2. In 2022, the Company made pension contributions totaling TWD 5,925,000 (including TWD 4,169,000 under the new system and TWD 1,756,000 under the old system).
While all companies reported in the financial statements made pension contributions totaling TWD 5,925,000 (including TWD 4,169,000 under the new system and TWD
1,756,000 under the old system).
34
3. Employees’ compensation appropriation was approved by the Board of Directors at the meeting on March 15, 2023. The compensations of the aforementioned managers
were not yet final and will be reviewed prior to the date of distribution.
▓ Table of Remuneration Ranges
Range of Remuneration
Under TWD 1,000,000
TWD 1,000,000 - TWD 2,000,000 (exclusive)
TWD 2,000,000 - TWD 3,500,000 (exclusive)
TWD 3,500,000 - TWD 5,000,000 (exclusive)
TWD 5,000,000 - TWD 10,000,000 (exclusive)
TWD 10,000,000 - TWD 15,000,000 (exclusive)
TWD 15,000,000 - TWD 30,000,000 (exclusive)
TWD 30,000,000- TWD 50,000,000 (exclusive)
TWD 50,000,000 - TWD 100,000,000 (exclusive)
Over TWD 100,000,000 (inclusive)
Total
Total of (A+B+C+D)
The Company
1 (Note 1)
1 (Note 2)
1 (Note 3)
5 (Note 4)
21 (Note 5)
9 (Note 6)
4 (Note 7)
2 (Note 8)
44
Number of President and Vice-Presidents
Total of (A+B+C+D+E)
Companies in the consolidated
financial statements
1(Note 9)
1(Note 10)
4 (Note 11)
23 (Note 12)
9 (Note 13)
4 (Note 14)
2 (Note 15)
44
Note:
1. Wei-Chia Wang-1 position
2.
3.
4.
5.
Yau-De Chiou-1 position
Jen-Liang Lin-1 position
Ching-Hsiung Lu、Fu-Chuan Chang、Jui-Chun Shyur、Jue-Teng Chang、Choo-Tain Chiu -5 positions
Chun-Te Shen、Kuo-Chuan Chen、Wen-Da Hsu、Chih-Chuan Cheng、Po-Tang Wang、Tzong -Ming Wang、Jyh-Shyan Liang、Yi-Yun Chang、Hsin-Kung Mao、Shih-Hong Huang、Yi-Chiang
Chiu、Peng-Hong Chan、Cheng-Chiang Wang、Cheng-Hui Su、Tu-Chuan Tu、Tu-Chuan Tu、Guo-Dung Yu、Peng Kuee Lau、Hou-Chun Liu、Wu-Ching Chi、Hsin-Chung Chen-21 positions
Chyou-Jui Wei、Shi-Kuan Chen、Min-Tung Weng、Lo-Chun Lee、Sheng-Hung Li、Bor-Heng Chen、Chung-Hsing Tan、Ta-Chun Wang、Yong-Ho Su-9 positions
Jui-Tsung Chen、Chung-Pin Wong-2 positions
6.
7. Ming-Chih Chang、Sheng-Hua Peng、Chen-Chang Hsu、Chi-Wai Wan -4 positions
8.
9. Wei-Chia Wang-1 position
10.
11.
12.
Yau-De Chiou-1 position
Ching-Hsiung Lu、Fu-Chuan Chang、Jui-Chun Shyur、Jen-Liang Lin-4 positions
Chun-Te Shen、Kuo-Chuan Chen、Wen-Da Hsu、Chih-Chuan Cheng、Po-Tang Wang、Tzong -Ming Wang、Jyh-Shyan Liang、Yi-Yun Chang、Hsin-Kung Mao、Shih-Hong Huang、Yi-Chiang
35
Chiu、Peng-Hong Chan、Cheng-Chiang Wang、Cheng-Hui Su、Tu-Chuan Tu、Tu-Chuan Tu、Guo-Dung Yu、Peng Kuee Lau、Hou-Chun Liu、Wu-Ching Chi、Hsin-Chung Chen、Jue-Teng
Chang、Choo-Tain Chiu-23 positions
Chyou-Jui Wei、Shi-Kuan Chen、Min-Tung Weng、Lo-Chun Lee、Sheng-Hung Li、Bor-Heng Chen、Chung-Hsing Tan、Ta-Chun Wang、Yong-Ho Su-9 positions
13.
14. Ming-Chih Chang、Sheng-Hua Peng、Chen-Chang Hsu、Chi-Wai Wan-4 positions
15.
Jui-Tsung Chen、Chung-Pin Wong-2 positions
▓ Employee profits sharing granted to the management team
Unit: TWD 1,000
Title
Name
Stock Amount
Cash Amount
Total Amout
Total as a percentage of after-tax profits (%)
41 employees including
CSO Jui-Tsung Chen (Note 1)
Note: 1. Managers’ titles and names
0
90,620
90,620
1.2434%
‧
‧
‧
‧
‧
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 Chiu,Jui-Chun Shyur,Peng-Hong Chan,Cheng-Chiang Wang,Cheng-Hui Su,Tu-Chuan Tu,Tu-Chuan Tu,Guo-Dung Yu,Peng
Kuee Lau,Hou-Chun Liu,Wu-Ching Chi,Hsin-Chung Chen,Jue-Teng Chang,Choo-Tain Chiu – 24 positions
2. Vice-Presidents Chiao-Lie Huang, Wei-Chia Wang, Yau-De Chiou resigned in 2022. Vice-President Liang-Jen Lin transferred in 2023.
3. Employees’ compensation appropriation was approved by the Board of Directors at the March 15, 2023 meeting. The compensations of the aforementioned managers
have not been finalized and will be reviewed prior to the date of distribution.
36
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
2022
2021 (Note)
Increase (Decrease)
Amount
%
Amount
%
Amount
%
Unit: TWD 1,000
540,457
7.42%
659,641
5.22%
(119,184)
-18.07%
Net Income
7,288,292
12,632,667
(5,344,375)
Note: 2021 is the actual amount.
The Company's remuneration paid to Directors, CSO, the President and Vice Presidents reduced by NT$119,184 thousand dollars in the year of 2022 compared with
that in the year of 2021 (the ratio of reduce were 18.07%), primarily due to the fact of declined profits in the Company for the year 2022, in turn, boosted the reduce in
the corresponding remuneration. Nevertheless, in the year of 2022, the profits recognized reduced by 42.31% compared to the year of 2021. Accordingly, the aggregate
total remuneration in 2022 paid to the Company’s Directors, CSO, the President and Vice Presidents to the net income after tax shown in the parent-company-only
financial statements in the Company and all companies covered in the consolidated financial reports compared with the year of 2021 significantly increased by 42.15%.
▓ 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 compation based on other factors such as the Company’s operational performance and the individual Director’s
personal 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 to 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
37
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. 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 14th committee ran from August 27, 2021 to August 26, 2024
There were five Board meetings during 2022 (A). Director’s attendance records are as shown below:
Title
Name
Chairman
Sheng-Hsiung Hsu
Vice Chairman
Director
Director
Jui-Tsung Chen
Binpal Investment Co., Ltd.
Representative:Wen-Being Hsu
Kinpo Electronics, Inc.
Representative: Chieh-Li Hsu,
Director
Charng-Chyi Ko
Director
Sheng-Chieh Hsu
Director
Yen-Chia Chou
Director
Chung-Pin Wong
Director
Chiung-Chi Hsu
Director
Ming-Chih Chang
Director
Anthony Peter Bonadero
Director
Independent
Director
Independent
Director
Independent
Director
Sheng-Hua Peng
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
Attendance in
Person (B)
5
5
3
4
5
5
5
5
5
5
3
5
5
5
5
By Proxy
Attendance
Rate (%) [B/A]
Remarks
0
0
0
1
0
0
0
0
0
0
2
0
0
0
0
100%
100%
60%
100%
100%
100%
100%
100%
100%
100%
60%
100%
100%
100%
100%
‧
Independent Director’s attendance records for 2022:
Title
Name
Independent
Director
Independent
Director
Independent
Director
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
1st
Meeting
2nd
Meeting
3rd
Meeting
4th
Meeting
5th
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
3nd Meeting
(14th Term)
2022.2.10
4th Meeting
(14th Term)
2022.3.15
5th Meeting
(14th Term)
2022.5.11
The agendas, the nature of conflicting interests, and the voting outcome
Approved loan to Kinpo&Compal Group Assets Development Corporation
To avoid a conflict of interest, Jui-Tsung Chen, Chung-Pin Wong, Sheng-Chieh Hsu,
and Chieh-Li Hsu who are also acting as Directors of the Kinpo&Compal Group
Assets Development Corporation avoided discussion and voting on this proposal in
accordance with the Company’s Regulations Governing the Proceedings of Board
of Directors Meetings. Upon solicitation of comments by the chairman, there was
no objection addressed and the resolution was adopted unanimously by the
remaining Directors
Approved the appointment of the 1st term of sustainability committee members
An interested party relationship exists in Director Mr. Chung-Pin Wong,
Independent Directors Mr. Duei Tsai; Mr. Wen-Chung Shen. In order to avoid a
conflict of interest, these Director and Independent Directors excused themselves
from discussion and voting on this proposal. Upon solicitation of comments by the
Chairman of the meeting, there was no objection addressed and the resolution
was adopted unanimously by the remaining Directors present.
Approved the first mid-year employees’ bonus of the year 2022
In accordance with the Company’s Regulations Governing the Proceedings of Board
of Directors Meetings, an interested party relationship exists between any
Directors and any agenda proposals, such Directors shall excuse themselves during
discussion of and voting on those proposals. Accordingly, to avoid a conflict of
interest, Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-
Hua Peng, who are also acting as managerial officers of Compal, avoided discussion
and voting on this proposal. Upon solicitation of comments by the chairman, there
was no objection addressed and the resolution was adopted unanimously by the
remaining Directors present.
Approved the release of non-competition restrictions for the managers
An interested party relationship existed in Directors Jui-Tsung Chen, Chung-Pin
Wong. In order to avoid a conflict of interest, these Directors excused themselves
from discussion and voting on this proposal. Upon solicitation of comments by
the Chairman of the meeting, there was no objection addressed and the resolution
was adopted unanimously by the remaining Directors present.
Approved employees’ salary adjustment of the year 2022
In accordance with the Company’s Regulations Governing the Proceedings of Board
of Directors Meetings, an interested party relationship exists between any
Directors and any agenda proposals, such Directors shall excuse themselves during
discussion of and voting on those proposals. Accordingly, to avoid a conflict of
interest, Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-
Hua Peng, who are also acting as managerial officers of Compal, avoided discussion
and voting on this proposal. Upon solicitation of comments by the chairman, there
was no objection addressed and the resolution was adopted unanimously by the
remaining Directors present.
Approve to obtain newly issued shares of Raypal Biomedical Co., Ltd. by
participating in the capital injection by cash.
Chairman Sheng-Hsiung Hsu asked Independent Director Min-Chih Hsuan to act as
a deputy chairman to preside at this meeting for discussion and voting on this
proposal. To avoid a conflict of interest, Directors Directors Jui-Tsung Chen, Chieh-Li
Hsu, Chung-Pin Wong who are also acting as Directors of Raypal, Director Sheng-
40
Board of
Directors
Meeting
6th Meeting
(14th Term)
2022.8.12
7th Meeting
(14th Term)
2022.11.11
The agendas, the nature of conflicting interests, and the voting outcome
Hsiung Hsu, who has a the Father-son relationship, with Director Chieh-Li Hsu of
Raypal, Director Jui-Tsung Chen, who has a Father-son relationship with Director
Hsin-Chung Chen of Raypal, recuses and excludes themselves from discussion and
voting on this proposal in accordance with the Company’s Regulations Governing
the Proceedings of Board of Directors Meetings. Upon solicitation of comments by
the deputy chairman, there was no objection addressed and the resolution was
adopted unanimously by the remaining Directors present
Approved the Directors’ Remuneration for the year 2021
Chairman Sheng-Hsiung Hsu asked the Independent Director Min-Chih Hsuan to
act as a deputy chairman to preside at this meeting for discussion and voting on
this proposal. Since an interested party relationship exists, the Directors (i.e.,
Sheng-Hsiung Hsu, Jui-Tsung Chen, Chieh-Li Hsu, Charng-Chyi Ko, Sheng-Chieh Hsu,
Yen-Chia Chou, Chung-Pin Wong, Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua
Peng and Anthony Peter Bonadero) recused and excluded themselves from
discussion and voting on this proposal to avoid a conflict of interest. Upon
solicitation of comments by the deputy chairman, there was no objection
addressed and the resolution was adopted unanimously by the remaining Directors
present.
Approved 2nd mid-year employees’ bonus for the year 2022
In accordance with the Company’s Regulations Governing the Proceedings of Board
of Directors Meetings, if an interested party relationship exists among any
Directors and any agenda proposals, such Directors shall recuse and exclude
themselves during discussion of and voting on those proposals. Accordingly, to
avoid a conflict of interest, Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih
Chang and Sheng-Hua Peng, who are also acting as managerial officers of Compal,
avoided discussion and voting on this proposal. Upon solicitation of comments by
the chairman, there was no objection addressed and the resolution was adopted
unanimously by the remaining Directors present
Approved the compensation of Employee bonuses in cash of year 2021
In accordance with the Company’s Regulations Governing the Proceedings of Board
of Directors Meetings, an interested party relationship exists between any
Directors and any agenda proposals, such Directors shall excuse themselves during
discussion of and voting on those proposals. Accordingly, to avoid a conflict of
interest, Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-
Hua Peng, who are also acting as managerial officers of Compal, avoided discussion
and voting on this proposal. Upon solicitation of comments by the chairman, there
was no objection addressed and the resolution was adopted unanimously by the
remaining Directors present.
Approved the proposal for 2022 year-end employees’ bonus
In accordance with the Company’s Regulations Governing the Proceedings of Board
of Directors Meetings, an interested party relationship exists between any
Directors and any agenda proposals, such Directors shall excuse themselves during
discussion of and voting on those proposals. Accordingly, to avoid a conflict of
interest, Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-
Hua Peng, who are also acting as managerial officers of Compal, avoided discussion
and voting on this proposal. Upon solicitation of comments by the chairman, there
was no objection addressed and the resolution was adopted unanimously by the
remaining Directors present.
41
Board of
Directors
Meeting
The agendas, the nature of conflicting interests, and the voting outcome
Approved the proposal of the subsidiary’s planned gross project budget of the
leased land and commissioned to build the new group operating headquarters
building
Chairman Sheng-Hsiung Hsu asked the Independent Director Min Chih Hsuan to
act as a deputy chairman to preside at this meeting for discussion and voting on
this proposal. Directors of the Company, Jui-Tsung Chen, Chung-Pin Wong, Sheng-
Chieh Hsu, and Chieh-Li Hsu are also acting as Directors of Kinpo&Compal Group
Assets Development Corporation. In addition, Sheng-Hsiung Hsu and Sheng-Chieh
Hsu are second cousins (brothers), Sheng-Hsiung Hsu and Chieh-Li Hsu are first
cousins (father and son). To avoid a conflict of interest, they recused and excluded
themselves from discussion and voting on this proposal in accordance with the
Company’s Regulations Governing the Proceedings of Board of Directors Meetings.
Upon solicitation of comments by the chairman, there was no objection addressed
and the resolution was adopted unanimously by the remaining Directors present.
Approved the issuance of Letter of Undertaking by the Company to facilitate its
subsidiary in obtaining credit facilities from financial institution
Chairman Sheng-Hsiung Hsu asked the Independent Director Min Chih Hsuan to
act as a deputy chairman to preside at this meeting for discussion and voting on
this proposal. Directors of the Company, Jui-Tsung Chen, Chung-Pin Wong, Sheng-
Chieh Hsu, and Chieh-Li Hsu are also acting as Directors of Kinpo&Compal Group
Assets Development Corporation. In addition, Sheng-Hsiung Hsu and Sheng-Chieh
Hsu are second cousins (brothers), Sheng-Hsiung Hsu and Chieh-Li Hsu are first
cousins (father and son). To avoid a conflict of interest, they recused and excluded
themselves from discussion and voting on this proposal in accordance with the
Company’s Regulations Governing the Proceedings of Board of Directors Meetings.
Upon solicitation of comments by the chairman, there was no objection addressed
and the resolution was adopted unanimously by the remaining Directors present.
42
3. Self-Evaluation of the Board of Directors:
Evaluation
cycles
Evaluation
periods
Scope of
evaluation
Method of
evaluation
Once a year
From June 1, 2021 to May 31, 2022
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.
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 function of the Board of Directors and
set 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 2022, 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
43
a next office term. The performance evaluation results have been published on the Company's
website.
In 2022, to fulfill the company's commitment to sustainable development and improve the
in ESG risk management, Compal Electronics established a
company's overall capacity
Sustainability Committee.
In 2023, in order to strengthen corporate governance and risk management functions, it is to set
up a Risk Management Committee.
44
3.3.2
Audit Committee
▓ Duties of the Audit Committee
The Audit Committee exists as an enhancement to the Company's supervisory and management
function. It assists the Board of Directors in various decisions such as review of financial statements,
internal control policies, internal audits, accounting policies and procedures, major asset transactions,
appointment/dismissal/independence/suitability of certified public accountants, appointment/dismissal
of the chief accountant and chief auditor, etc., thereby ensuring that the Company operates in compliance
with the competent authority's instructions and relevant laws
▓ The powers of the Committee are as follows:
1. The adoption of or amendments to the internal control system pursuant to Article 14-1 of the Securities
and Exchange Act.
2. Assessment of the effectiveness of the internal control system.
3. The adoption or amendment, pursuant to Article 36-1 of the Securities and Exchange Act, of the
procedures for handling financial or business activities of a material nature, such as acquisition or
disposal of assets, derivatives trading, loaning of funds to others, and endorsements or guarantees for
others.
4. Matters in which a Director is an interested party.
5. Asset transactions or derivatives trading of a material nature.
6. Loans of funds, endorsements, or provision of guarantees of a material nature.
7. The offering, issuance, or private placement of equity-type securities.
8. The hiring or dismissal of a certified public accountant, or their compensation.
9. The appointment or discharge of a financial, accounting, or internal audit officer.
10. Annual financial reports which are signed or sealed by the 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.
▓ Professional Qualifications and Experience of Audit Committee Members
Title
Name
Professional Qualifications and Experience
Convener
Min-Chih Hsuan
Committee
Member
Duei Tsai
Committee
Member
Wen-Chung Shen
Honorary Doctorate, Department of Electrical Engineering, National Chiao
Tung University
Chairman, Vice Chairman, CEO, President and Honorary Vice Chairman of
United Microelectronics Corp.
The individual has rich knowledge and adequate experience in business
operations, performance evaluation, investment, corporate
merger/acquisition, which is extremely helpful to the company's
development. The Independent Director possesses more than 30 years of
work experience required for the business of the Company.
PhD, Graduate Institute of Electrical Engineering, National Taiwan University
Independent Director of Taiwan High Speed Rail Corporation, TTY Biopharm
Company Ltd.and Independent Director for Public Welfare of Starlux Airlines
Co., Ltd.
The individual has professional capability in the communications network
field, and rich knowledge as well as adequate experience in the company
management and information security protection, which will help the
company strengthen relevant management measures. The Independent
Director possesses more than 30 years of work experience required for the
business of the Company.
Department of Electrical Engineering, National Taiwan University
Chairman of Her Tuo Co., Ltd., and Director and Executive Vice President of
Compal
The individual has rich knowledge and adequate experience in electronics
industry, business operations, risk management, which is extremely helpful
45
Title
Name
Professional Qualifications and Experience
to the company's development. The Independent Director possesses more
than 30 years of work experience required for the business of the Company.
▓ Attendance of Members at Audit Committee Meetings
‧
‧
‧
The Company's Audit Committee is composed of three independent directors.
The term of the 3rd committee ran from August 27, 2021 to August 26, 2024.
There were five Audit Committee meetings during 2022 (A). The attendance records of the
Independent Directors are as follows:
Title
Name
Convener
Committee Member
Committee Member
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
Attendance in
Person (B)
5
5
5
By Proxy
0
0
0
Attendance Rate (%)
[B/A]
100%
100%
100%
Remarks
-
-
-
▓ The major audit items of the Audit Committee in 2022 are as follows:
1. The amendments to the internal control system pursuant.
2. The amendment to the Procedures for Acquisition or Disposal of Assets, Procedures for Lending Funds
to Other Parties
3. Annual and interim financial reports, Business report, Proposal for distribution of profits
4. To evaluate the CPAs’ independence and competence for performing the financial report audit.
5. Matters in which a Director is an interested party.
6. A material monetary loan and providing of Letter of Undertaking.
7. A material asset transaction.
8. Assessment of the design and operation effectiveness of the internal control system.
9. The defects, irregularities, and the status of corrections in the internal control system.
10. Annual audit plan for year 2023
11. 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
3nd Meeting
(14th Term)
2022.2.10
Content of discussion and actions taken in response
Matters listed
in Item 5,
Article 14 of
the Security
Act
Not approved by the
Audit Committee but
had the consent of
more than two-thirds
of all directors.
1.To approve for loan to Kinpo&Compal Group Assets
Development Corporation
2. To approve for the Company to acquire the common
shares of Poindus Systems Corp. by public tender
offer.
▲Resolution adopted by the Audit Committee (2022.2.10):
V
V
None
None
Upon solicitation of comments by the Chairman, there was no objection addressed 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
To avoid a conflict of interest, Jui-Tsung Chen, Chung-Pin Wong, Sheng-Chieh Hsu,
46
Board of
Directors
Meeting
Content of discussion and actions taken in response
Matters listed
in Item 5,
Article 14 of
the Security
Act
Not approved by the
Audit Committee but
had the consent of
more than two-thirds
of all directors.
and Chieh-Li Hsu who are also acting as Directors of the Kinpo&Compal Group Assets
Development Corporation avoided discussion and voting on this proposal in
accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings. Upon solicitation of comments by the chairman, there was no
objection addressed and the resolution was adopted unanimously by the remaining
Directors present.
・Motion 2
Upon solicitation of comments by the Chairman, there was no objection addressed
and the resolution was adopted unanimously by the Directors present.
1. To approve 2021 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
2. To approve the Business Report for the year 2021
3. To approve the proposal for Distribution of Earnings
for the year 2021
4. To evaluate CPAs’ independence and competence of
performing financial report audit.
5. To approve the Internal Control System Statement
for the year 2021
V
V
V
V
V
4th Meeting
(14th Term)
2022.3.15
None
None
None
None
None
▲Resolution adopted by the Audit Committee (2022.3.15):
Upon solicitation of comments by the Chairman, there was no objection addressed
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:
Upon solicitation of comments by the Chairman, there was no objection addressed
and the resolution was adopted unanimously by the Directors present.
5th Meeting
(14th Term)
2022.5.11
1. To approve the 1Q 2022 Consolidated Financial
Review Report
2. To approve the amendment to the “Procedures for
Acquisition or Disposal of Assets”
3. To approve the amendment to the “Procedures for
Lending Funds to Other Parties”
4.To approve the release of non-competition
restrictions for the managers
5. To approve fund loan to 100% owned subsidiary
Compalead Eletrônica do Brasil Indústria e Comércio
Ltda.
6. To approve fund loan to 100% owned subsidiary
Compal Eletrônica Da Amazônia Ltda.
7. To approve the execution of the investment
agreement for the project of New Taipei City RuiFang
District Medical and Long-Term Care Facility
BOT+BTO Project
8. To approve to obtain newly issued shares of Raypal
Biomedical Co., Ltd. by participating in the capital
injection by cash.
V
V
V
V
V
V
V
V
None
None
None
None
None
None
None
None
▲Resolution adopted by the Audit Committee (2022.5.11):
Upon solicitation of comments by the Chairman, there was no objection addressed
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:
47
Board of
Directors
Meeting
Content of discussion and actions taken in response
Matters listed
in Item 5,
Article 14 of
the Security
Act
Not approved by the
Audit Committee but
had the consent of
more than two-thirds
of all directors.
・Except for motion 4 and 8
Upon solicitation of comments by the Chairman, there was no objection addressed
and the resolution was adopted unanimously by the Committee Members present.
・Motion 4
An interested party relationship existed in Directors Jui-Tsung Chen, Chung-Pin
Wong. In order to avoid a conflict of interest, these Directors excused themselves
from discussion and voting on this proposal. Upon solicitation of comments by the
Chairman of the meeting, there was no objection addressed and the resolution was
adopted unanimously by the remaining Directors present.
・Motion 8
Chairman Sheng-Hsiung Hsu asked Independent Director Min-Chih Hsuan to act as a
deputy chairman to preside at this meeting for discussion and voting on this
proposal. To avoid conflict of interest, Directors Directors Jui-Tsung Chen, Chieh-Li
Hsu, Chung-Pin Wong who are also acting as Directors of Raypal, Director Sheng-
Hsiung Hsu, who has a Father-son relationship with Director Chieh-Li Hsu of Raypal,
Director Jui-Tsung Chen, who has a Father-son relationship with Director Hsin-Chung
Chen of Raypal, 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
chairman, there was no objection addressed and the resolution was adopted
unanimously by the remaining Directors present
1.To approve the 1H 2022 Consolidated Financial
Review Report
2.To approve for a loan to Henghao Technology Co. Ltd.
3.To approve for a loan to Unicom Global, Inc.
6th Meeting
(14th Term)
2022.8.12
4.To approve the Company to adjust the lending
interest rate and interest payment date of the capital
loan to the subsidiaries
▲Resolution adopted by the Audit Committee (2022.8.12):
V
V
V
V
None
None
None
None
Upon solicitation of comments by the Chairman, there was no objection addressed
and the resolution was adopted unanimously by the Committee Members present.
▲Action taken by the Company in response to opinion of the Audit Committee:
Upon solicitation of comments by the Chairman, there was no objection addressed
and the resolution was adopted unanimously by the Directors present.
1.To approve the 3Q 2022 Consolidated Financial
Statements
2.To approve the amendment to the “Internal
Control System”
3. To approve to indirectly invest in the
7th Meeting
(14th Term)
2022.11.11
establishment of a Vietnamese subsidiary and
obtain the land use rights by the subsidiary.
4. To approve the proposal of the subsidiary’s
planned gross project budget of the leased land
and commissioned to build the new group
operating headquarters building
5. To approve the issuance of Letter of
Undertaking by the Company to facilitate its
48
V
V
V
V
V
None
None
None
None
None
Board of
Directors
Meeting
Content of discussion and actions taken in response
Matters listed
in Item 5,
Article 14 of
the Security
Act
Not approved by the
Audit Committee but
had the consent of
more than two-thirds
of all directors.
subsidiary in obtaining credit facilities from
financial institution
6. To propose for approval of annual audit plan for
year 2023
V
None
▲Resolution adopted by the Audit Committee (2022.11.11):
Upon solicitation of comments by the Chairman, there was no objection addressed
and the resolution was adopted unanimously by the Committee Members present.
▲Action taken by the Company in response to opinion of the Audit Committee:
・Except for motion 4 and 5
Upon solicitation of comments by the Chairman, there was no objection addressed
and the resolution was adopted unanimously by the Directors present.
・Motion 4
Chairman Sheng-Hsiung Hsu asked the Independent Director Min Chih Hsuan to act as
a deputy chairman to preside at this meeting for discussion and voting on this
proposal. Directors of the Company, Jui-Tsung Chen, Chung-Pin Wong, Sheng-Chieh
Hsu, and Chieh-Li Hsu are also acting as Directors of Kinpo&Compal Group Assets
Development Corporation. In addition, Sheng-Hsiung Hsu and Sheng-Chieh Hsu are
second cousins (brothers), Sheng-Hsiung Hsu and Chieh-Li Hsu are first cousins (father
and son). To avoid a conflict of interest, they recused and excluded themselves from
discussion and voting on this proposal in accordance with the Company’s Regulations
Governing the Proceedings of Board of Directors Meetings. Upon solicitation of
comments by the chairman, there was no objection addressed and the resolution was
adopted unanimously by the remaining Directors present.
・Motion 5
Chairman Sheng-Hsiung Hsu asked the Independent Director Min Chih Hsuan to act as
a deputy chairman to preside at this meeting for discussion and voting on this
proposal. Directors of the Company, Jui-Tsung Chen, Chung-Pin Wong, Sheng-Chieh
Hsu, and Chieh-Li Hsu are also acting as Directors of Kinpo&Compal Group Assets
Development Corporation. In addition, Sheng-Hsiung Hsu and Sheng-Chieh Hsu are
second cousins (brothers), Sheng-Hsiung Hsu and Chieh-Li Hsu are first cousins (father
and son). To avoid a conflict of interest, they recused and excluded themselves from
discussion and voting on this proposal in accordance with the Company’s Regulations
Governing the Proceedings of Board of Directors Meetings. Upon solicitation of
comments by the chairman, there was no objection addressed and the resolution was
adopted unanimously by the remaining Directors present.
(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.
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
49
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
Committee
4th Meeting
(3rd Term)
2022.3.15
5th Meeting
(3rd Term)
2022.5.11
6th Meeting
(3rd Term)
2022.8.12
7th Meeting
(3rd Term)
2022.11.11
8th Meeting
(3rd Term)
2023.3.15
9th Meeting
(3rd Term)
2023.5.8
Content of discussion
Results
1. Report on operational status of the
internal audit activities
2.To approve the Internal Control System
Statement for the year 2021
1. Report on operational status of the
internal audit activities
1. Report on operational status of the
internal audit activities
1. Report on operational status of the
internal audit activities
2. To propose for approval of annual audit
plan for year 2023
1. Report on operational status of the
internal audit activities
2.To approve the Internal Control System
Statement for the year 2022
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.
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.
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
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
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
The report was reviewed by the Audit
Committee whereupon independent directors
raised no objection or further instruction.
50
(3) Summary of the communications between the Independent Directors and CPA:
Audit Committees
Meeting
Content of discussion
Results
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 accounting
The proposal was
approved by the Audit
Committee and will be
resolved by the Board of
Directors
8th Meeting
(3rd Term)
2023.3.15
items
1. To approve the 2022 Audited Consolidated Financial
Statements and Parent Company Only Financial
Statements
‧ Declaration of Independence
‧ The responsibility of auditors in auditing financial
The proposal was
approved by the Audit
Committee and will be
resolved by the Board of
Directors
statements.
‧ The types of audit opinion
‧ The audit scope (including Explanation of key audit
items)
‧ The audit Findings
4. Status of individually communication between independent directors, internal audit
supervisor and CPA:
Object
Forum
Communication focus
Results
2022.11.11
Internal
audit
supervisor
1. Annual Manpower Planning and
Education and Training Promotion of
Internal Audit Office
2. Proposed amendments to the Risk
Management Regulations in
accordance with the latest regulations
of the competent authorities and
consultation with independent
directors
2022.11.11 CPA
1. Annual audit plan
2. Independence
3. Audit Quality Indicators in 2021
Agree to strengthen the
professional training of auditors
and fill the vacancies.
Agreed to establish a risk
management committee in
accordance with the
recommendation of the competent
authority, and all three
independent directors agreed to be
members.
The independent directors have no
issue with content of
communication
51
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
8, 2023, 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
52
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
implemented policies to
ensure the diversity of its
members?
Yes
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
22.
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 member Chung-Pin Wong, the Sustainability Committee is
responsible for taking point in explaining company policies and positions externally, defining goals
and directions internally, integrating resources, reviewing action plans, monitoring execution
progress and reporting results to the board of directors on a yearly basis.
In order to strengthen corporate governance and risk management functions, the Company has
established a "Risk Management Committee" and reports regularly (at least once a year) to the
Board of Directors to review the implementation of risk management and make necessary
recommendations for improvement.
No deviations were
found
No deviations were
found
53
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 for 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 2022 are as follows:
Evaluation level
Good
Good
Excellent
Good
Items
Individual board members
Board of Directors
Audit Committee
Remuneration Committee
Total average
4.62
4.80
5.00
4.90
4. Is the independence of
Yes
external auditors assessed on
a regular basis?
No deviations were
found
The Company evaluates the independence and competence of the CPA at least once a year, in
accordance with Article 47 of the Certified Public Accountant Act and No. 10 of the Professional
Ethics for Certified Public Accountant of the Republic of China. The CPA cannot be a Director,
supervisor, or shareholder of the Company and may not receive payroll or be a related party to the
Company. The Company requests the “Evaluation Form of the CPA's Independence and
Competence” along with the “the CPA’s Independent Confirmation” and the “Audit Quality
Indicators (AQIs)”from the CPA. The company also evaluates the independence of the CPA in
accordance with the items listed (please refer to page 59) as well as 13 indicators of AQIs. After
evaluation, the CPA has no other financial interests or joint investment relationship with the
Company except for the service fees due from audit, financial and tax cases, the CPA's family
members do not violate the independence requirements, as well as the experience in audit,
professional support and training hours of the CPA and his/her firm are all better than the average
of the peer industry by referring to the AQIs. The latest evaluation of the independence and
competence of CPA was approved by the Audit Committee held on March 15, 2023, and was
54
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
IV. Is the listed or OTC Company
Yes
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.)
Yes
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
resolved by the Board of Directors held on March 15, 2023. The same evaluation applies to the
condition whenever there is an internal rotation within the CPA firm.
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.
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 2022, refer to
page 59.
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
55
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
limited to shareholders,
employees, customers, and
suppliers)?
VI. Does the Company engage a
Yes
share administration agency
to handle shareholder
meeting affairs?
VII. Information disclosure
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
1. Has the Company established a
Yes
The Company website at (www.compal.com) is regularly updated with information such as financial
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
performance, corporate governance and shareholder meetings
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
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.
No deviations were
found
No deviations were
found
The Company will
carefully assess the
probability of
announcing and
filing annual financial
reports within two
months after the end
of the fiscal year.
56
Deviation and causes
of deviation
No deviations were
found
Assessment criteria
Actual governance
Yes
No
Summary description
ahead of the required time
limit?
VIII. Does the Company offer
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?
Investor relations (please refer to pages 61)
Employee rights and care for employees (please refer to page 60)
•
• Code of Conduct for Directors, managers, and employees (please refer to page 61)
•
• Supplier relations and operation status of customer policy (please refer to page 61-62)
• Stakeholders’ interests (please refer to page 62)
• Risk management practice and framework (please refer to pages 62-64), Risk analysis (please
refer to pages 201-204)
• Purchasing liability coverage for the Company’s Directors & Supervisors(please refer to page
65)
• Continuing education for Directors and managers (please refer to pages 65-68)
• Succession plan for Board members and key Management team (please refer to page 68)
• Acquisition of certificate(s) by the Company's personnel related to the transparency of
financial information (please refer to page 69)
57
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 2022, members of
the Board of Directors completed a total of 95.01 hours of training.
• In 2022, establish a Sustainability Committee, the enactment to the “Sustainability Committee Charter”, “Risk management policy of Compal Group”, “Compal
Group's Business Continuity Management Policy” and the amendment “Corporate Social Responsibility Best Practice Principles” to “Sustainable Development Best
Practice Principles” were proposed to accommodate the corporate governance , all of which have been submitted to the Board of Directors for resolution.
• In 2022, to accommodate the business needs and the requirements of applicable laws and regulations, the amendment to the “Articles of Incorporation”,
“Procedures for Acquisition or Disposal of Assets”, “Procedures for Lending Funds to Other Parties”, “Rules and Procedures of Shareholders Meeting”, “Rules and
Procedures for Board of Directors Meetings”, and the amendment “Procedures for Handling Material Inside Information” were proposed to the Board meeting and
the Shareholders Meeting for approval.
• In 2023, establish a Risk Management Committee the enactment to the “Risk Management Best Practice Principles”, “Risk Management Committee Charter
",“Human Rights Policy” and the amendment “Corporate Governance Best-Practice Principles ", “Sustainable Development Best Practice Principles ", “Management
Rules for Preventing Insider Trading” to “Regulations on Prevention of Insider Trading”, “Risk management policy of Compal Group” to “Company's Risk
Management Policies and Procedures” were proposed to accommodate corporate governance , all of which have been submitted to the Board of Directors for
resolution.
• In the “9th Round of Corporate Governance Evaluations” by TWSE, Compal was placed in the top 21%-35% of listed companies.
• We uploaded the English annual financial report 16 days before the shareholders’ meeting.
58
▓ Items to evaluate the independence of the CPA:
Item
Whether or not the CPA has a direct or material indirect financial interest
with the Company
Whether or not the CPA has joint investment relationship with the
Company or its affiliates, or has shares in financial gains therewith with the
Company or its affiliates
Whether or not the CPA holds any share of the Company and its affiliates,
or the CPA lends or borrows funds to or from the Company and its affiliates
Whether or not the CPA has any improper relationship with the Company,
or is currently employed by the Company to perform routine work for which
the CPA receives a fixed salary
Whether or not the CPA participates in the Company’s management and
operational decision-making
Whether or not the CPA is a spouse, lineal relative, direct relative by
marriage, or a collateral relative within the second degree of kinship of any
responsible person or managerial officer of the Company
Whether or not the CPA provides management consulting or other non-
attestation services that may affect the CPA’s independence
Whether or not the CPA permits others to practice under his/her name
Whether or not the CPA accepts commission related to his/her business
As for the latest attestation work, whether or not the CPA remains
unchanged over seven years
Whether or not the CPA has received any sanction or has any circumstances
which affect his/her independence
Evaluation
result
NO
Meets independence
or not
YES
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
▓ The results of Compal’s corporate governance unit operations for 2022 is as follows:
‧ Compile and prepare 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.
‧ Establishment of a Sustainability Committee, the enactment to the “Sustainability Committee Charter ", “Risk
management policy of Compal Group ",“Compal Group's Business Continuity Management Policy” and the
amendment “Corporate Social Responsibility Best Practice Principles" to “Sustainable Development Best
Practice Principles" were proposed to accommodate the corporate governance , all of which have been
submitted to the Board of Directors for resolution.
‧ 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",“Rules
and Procedures for Board of Directors Meetings”, and the amendment “Procedures for Handling Material Inside
Information” were proposed 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 resolution.
‧ 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
59
well as to ensure sound corporate governance. For the records of the communication meetings, please see page
50-51.
‧ 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 in the 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 2022 came to USD 50,000 thousand, which was roughly equivalent to TWD 1,557,500
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 14 hours of continuing education. For the exact education program,
please see page 65-68.
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, and Vietnam, 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. We set up the employees' opinions mailbox and the anti-violence mailbox. Moreover, 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.
60
‧
‧
‧
‧
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 use 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.
▓ 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 2022, Compal proactively participated in online investor forums and investor conference calls, hosted by either
local or foreign brokers every quarter, 15 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.
Since 2015, Compal has set up a supplier communication window on the procurement platform, CPS (Compal
Procurement System), to establish an effective communication channel with suppliers and announce important
information on CPS.
Every year we cooperate with the Ministry of Safety and Environmental Affairs to hold a supplier conference. In
2019, 3 conferences were held in Taipei, Kunshan, China, and Chongqing, Sichuan. The content included the revision
of environmental substance management standards and system. Affected by Covid-19 in 2020-2021, Compal
maintained a good communication relationship with suppliers and changed to online conferences. The content of
2021 online conference included the update of global green product regulations, RBA VAP v7.0, conflict minerals,
introduction of Compal Supplier Management System and supply chain green environment promotion. Total 349
61
suppliers participated.
Our company values customer rights, ensures compliance with signed contracts and related regulations, protects
customer information privacy, and provides high-quality products and services to increase our product
competitiveness and customer reliance, while also solidifying long-term cooperation relationships. In addition, we
conduct regular customer satisfaction surveys and proceed appropriate improvement plans based on customer
feedback and opinions to continuously meet customer needs.
▓ 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) Comply with the policies and regulations of the country in which it operates：
The Company has its own financial, sales, and accounting system, and a system for monitoring financial and
business information of its subsidiaries in accordance with "Regulations Governing the Establishment of
Internal Control Systems by Public Companies". The Company has also guidelines in place for supplier
management, customer relations, R&D, human resources, financial affairs, credit/endorsement/guarantee
arrangements with affiliated businesses, and acquisition/disposal of key assets. These policies, risk assessment
standards, and procedures serve as a guideline by which employees may abide for risk assessment and
management. Dedicated personnel have been appointed in every department to manage, control, minimize,
and prevent Company risks. 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
62
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 201).
(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
"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 12 in 2022 to 13 in 2023. At the same time, the professional certificate holders of CPA/CIA/CISA is
expected to increase from 36% to more than 50% in five years time.
63
2. Risk management framework
Key risk areas
Front line unit
(Business organizer)
(Level 1)
Risk review and control
(Executive management meeting)
(Level 2)
‧ Interest rate, exchange rate, inflation
‧ Finance Group
‧ Operation Team
Board of Directors,
Audit Committee,
Risk Management
Committee,
Auditing Office
(Level 3)
‧ Auditing Office:
Risk inspection,
evaluation, supervision,
improvement and
reporting
and financial risks
‧ High-risk or highly leveraged
investment, loan to third party,
endorsement, guarantee, trading of
derivatives and treasury investment
‧ R&D planning
‧ Changes in policy and law
‧ Changes in technology and industry
‧ Changes in corporate image
‧ Investment, subsidiary and M&A
benefits
‧ Business
departments/centers
(Note 1)
‧ Common departments
(Note 3)
‧ Expansion of factory, production site
‧ Business
and equipment
‧ Centralized purchase or sale
departments/centers
(Note 1)
‧ Common departments
(Note 3)
‧ Equity transfer involving Directors,
‧ Share administration
supervisors, and major shareholders
affairs
‧ Change of management
‧ Litigation and non-contentious cases
‧ Handling of product safety incidents
‧ Other operational affairs
‧ Personnel behavior, ethics, and
conduct
‧ Rules (including SOPs), internal
control system and compliance with
regulations
‧ Board of Directors
‧ Product risk management
‧ Managers of all levels
‧ Managers of all levels
‧ HR and Administration
‧ Managers of all levels
‧ Corporate investment review
‧ Executive management meeting
‧ Subsidiaries monitoring and
‧ Board of Directors,
‧ Audit Committee,
‧ Risk Management
Committee
Decision-making and
ultimate control over risk
evaluation
management report
‧ Monthly operating meeting
‧ Production and marketing
meeting
‧ Share administration affairs
‧ Head of Finance/Accounting
‧ Legal affairs
‧ Business groups/centers (Note 2)
‧ Personnel Evaluation Committee
‧ 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.
3、The actual performance of risk management in 2022
The “Risk Management Policy of Compal Group” has been approved by the Board of Directors on March 15,
2022. And the “Compal Group's Business Continuity Management Policy” has been approved by the Board of
Directors on August 12, 2022. With respect to complying the risk management policy, the company formulated
annual plans and gradually improved the risk management mechanism. The relevant implement has reported
to the Board of Directors on November 11, 2022.
64
▓ 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 2022 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 1,557,500,000)
From:2022.11.21
To: 2023.11.21
2023.02.07
▓ 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 2022 include:
˙Continuing education for directors
Title
Name
Date of
training
Organized by
Course title
Hours of
training
Chairman
Sheng-Hsiung
Hsu
2022.10.03 Securities and Futures
Institute
Vice Chairman Jui-Tsung
Chen
2022.12.01 Securities and Futures
Institute
2022.02.11 Compal Electronics, Inc.
2022.04.22 Taiwan Institute for
Sustainable Energy
2022.10.03 Securities and Futures
Institute
2022.12.09 Compal Electronics, Inc.
Director
Chieh-Li Hsu 2022.04.22 Taiwan Institute for
Sustainable Energy
2022.10.24 Taiwan Corporate
Governance Association
2022.10.25 Taiwan Corporate
Governance Association
2022.10.27 Taiwan Corporate
Governance Association
Director
Charng-Chyi
Ko
2022.10.03 Securities and Futures
Institute
Director
Sheng-Chieh
Hsu
2022.12.01 Securities and Futures
Institute
2022.05.20 Kinpo Group Management
Consultant Company
2022.10.19 Taiwan Corporate
Governance Association
The key point analysis of Corporate
Governance Evaluation, items list for
Directors reminding
Ways to handle and manage the trends
of Net-Zero carbon emissions
<2022> or <2020, too>?
The Taishin bank 30 summit forum:
strive to reach Net-Zero Carbon
emissions and be sustainable in 2030
The key point analysis of Corporate
Governance Evaluation, items list for
Directors reminding
Seminar on "Global Economic Outlook
for year 2023"
The Taishin bank 30 summit forum:
strive to reach Net-Zero Carbon
emissions and be sustainable in 2030
The analysis of regulations and business
trends of third-party payment
The material economic / trading topics
and outlook in 2022
The new business opportunity from AI
development with integration of
hardware and software: digital
marketing trends (Web 3 plus ESG)
The key point analysis of Corporate
Governance Evaluation, items list for
Directors reminding
Ways to handle and manage the trends
of Net-Zero carbon emissions
The impact of ESG trends on the capital
market and how to cope
The 18th (2022) Corporate Governance
Summit Forum - Improving the Functions
of Directors and Implementing
Sustainable Corporate Governance
3
3
1
3
3
1
3
3
3
3
3
3
2
3
65
Title
Name
Date of
training
Organized by
Course title
Director
Director
Yen-Chia
Chou
Chung-Pin
Wong
Director
Director
Ming-Chih
Chang
Sheng-Hua
Peng
2022.05.20 Kinpo Group Management
Consultant Company
2022.02.10 Taiwan Institute for
Sustainable Energy
2022.02.10 Taiwan Institute for
Sustainable Energy
2022.02.11 Compal Electronics, Inc.
2022.04.28 Taiwan Institute for
Sustainable Energy
2022.04.28 Taiwan Institute for
Sustainable Energy
2022.05.20 Kinpo Group Management
Consultant Company
2022.07.28 Taiwan Institute for
Sustainable Energy
2022.07.28 Taiwan Institute for
Sustainable Energy
2022.07.28 Taiwan Institute for
Sustainable Energy
2022.12.09 Compal Electronics, Inc.
2022.02.11 Compal Electronics, Inc.
2022.02.11 Compal Electronics, Inc.
2022.04.22 Taiwan Institute for
Sustainable Energy
2022.10.12 Securities and Futures
Institute
2022.12.09 Compal Electronics, Inc.
Independent
Director
Min Chih
Hsuan
2022.06.27 Taiwan Corporate
Governance Association
2022.08.08 Taiwan Corporate
Governance Association
Independent
Director
Duei Tsai
2022.04.13 Securities and Futures
Institute
2022.05.20 Kinpo Group Management
Consultant Company
2022.07.21 Securities and Futures
Institute
2022.08.03 Securities and Futures
Institute
2022.09.07 Securities and Futures
Institute
2022.10.11 Taiwan Stock Exchange
Corporation
66
The impact of ESG trends on the capital
market and how to cope
The introduction of investment strategy
under current global environment
Grasping sustainability and new
investment trends
<2022> or <2020, too>?
Sustain recycle in the woods
The current conditions and outlook
regarding Net-Zero Carbon emissions in
agriculture department
The impact of ESG trends on the capital
market and how to cope
The experiences of promoting ESG
(Nanya Technology Corporation)
The impact of Green manufacturing on
the technology industry
The introduction of carbon credits
worldwide
Seminar on "Global Economic Outlook
for 2023"
<2022> or <2020, too>?
<2022> or <2020, too>?
The Taishin bank 30 summit forum:
strive to reach Net-Zero Carbon
emissions and be sustainable in 2030
The 2002 forum of laws and regulations
on insider trading
Seminar on "Global Economic Outlook
for 2023"
The study of Martial Information
disclosure and the responsibility of
Directors and Supervisors
How to protect trade secrets effectively
External innovation and Corporate
sustainable business operations
The impact of ESG trends on the capital
market and how to cope
The study of Corporate governance and
Law of Securities Exchange and Trading
Under the threat of ransomware, the
legality of information security
management law
The international trend of Net-Zero
Carbon emissions and Taiwan's actions
in promoting the transition to Zero-
Carbon
The roles and responsibilities guidelines
for Independent directors and audit
committee and the Director/Supervisors
education program
Hours of
training
2
1
1
1
1
1
2
0.67
0.67
0.67
1
1
1
3
3
1
3
3
3
2
3
3
3
3
Title
Name
Date of
training
Organized by
Course title
2022.10.19 Taiwan Corporate
Governance Association
2022.10.28 Securities and Futures
Institute
Independent
Director
Wen-Chung
Shen
2022.04.22 Taiwan Institute for
Sustainable Energy
2022.05.20 Kinpo Group Management
Consultant Company
2022.10.19 Taiwan Corporate
Governance Association
The 18th (2022) Corporate Governance
Summit Forum - Improving the Functions
of Directors and Implementing
Sustainable Corporate Governance
The 2022 seminar on the prevention of
insider trading
The Taishin bank 30 summit forum:
strive to reach Net-Zero Carbon
emissions and be sustainable in 2030
The impact of ESG trends on the capital
market and how to cope
The 18th (2022) Corporate Governance
Summit Forum - Improving the Functions
of Directors and Implementing
Sustainable Corporate Governance
˙ Continuing education for managers
Title
Name
Date of
training
Organized by
Course title
Chun-Te Shen 2022.02.11 Compal Electronics, Inc.
<2022> or <2020, too>?
Senior Vice
President
Vice President Cheng-Chiang
2022.02.11 Compal Electronics, Inc.
<2022> or <2020, too>?
Wang
2022.12.09 Compal Electronics, Inc.
Vice President Guo-Dung
2022.02.11 Compal Electronics, Inc.
Yu
2022.04.22 Taiwan Institute for
Sustainable Energy
2022.12.09 Compal Electronics, Inc.
Vice President Wu-Ching Chi 2022.01.05 Compal Electronics, Inc.
Vice President Hsin-Chung
2022.01.06 Compal Electronics, Inc.
Chen
Vice President Jue-Teng
2022.01.21 Compal Electronics, Inc.
Chang
Vice President Choo-Tain
2022.05.03 Compal Electronics, Inc.
Chiu
Corporate
Governance
Officer
Cheng-Chiang
Wang
2022.04.11 Accounting Research and
Development Foundation
2022.04.27 Accounting Research and
Development Foundation
2022.05.20 Kinpo Group Management
Consultant Company
2022.07.19 Taiwan Corporate
Governance Association
67
Seminar on "Global Economic Outlook
for 2023"
<2022> or <2020, too>?
The Taishin bank 30 summit forum:
strive to reach Net-Zero Carbon
emissions and be sustainable in 2030
Seminar on "Global Economic Outlook
for 2023"
The management of preventing insider
trading for - and with - high level
managers
The management of preventing insider
trading for - and with - high level
managers
The management of preventing insider
trading for - and with - high level
managers
The management of preventing insider
trading for - and with - high level
managers
The study of legal matters regarding
Corporate ownership battles and related
practical issues
Knowing TCFD report: Grasping the key
information poings
The impact of ESG trends on the capital
market and how to cope
Ways to handle and manage the trends
of Net-Zero carbon emissions
Hours of
training
3
3
3
2
3
Hours of
training
1
1
1
1
3
1
0.58
0.58
0.58
0.58
3
3
2
3
Title
Name
Date of
training
Organized by
Course title
Accounting
Officer
Cheng-Chiang
Wang
2022.10.12 Securities and Futures
Institute
Accounting Research and
Development Foundation
2022.11.17-
2022.11.18
Internal Audit
Officer
Chenyi Li
2023/01/09 Accounting Research and
Development Foundation
2023/01/10 Accounting Research and
Development Foundation
The 2002 forum of laws and regulations
on insider trading
“Training program for the new
Accounting Officer”
A class for new Accounting Officers,
requested due to the Company’s share
exchange/transaction program
The latest "Internal Control Management
Guidelines Amendment" and
"Information Security" legal compliance
and fraud prevention practices
The latest policy development and
internal control management practices
related to "ESG sustainability" and "self-
compilation of financial reports"
Hours of
training
3
12
6
6
▓ 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.
68
▓ Certificate and qualification acquisition status for personnel involved in financial information
Name of certificate
No. of persons
5 persons
2 persons
9 persons
4 persons
3 persons
3 persons
1 person
1 person
1 person
1 person
3 persons
3 persons
1 person
1 person
1 person
1 person
1 person
1 person
1 person
1 person
1 person
1 person
1 person
1 person
1 person
transparency
CPA qualification
USCPA qualification
Senior Securities Specialist
Securities Specialist
Futures Specialist
Securities Investment Trust and Consulting Professional
Chartered Financial Analyst
Certificate In ESG Investing
Investor Relations Charter (IRC®)
Professional in Business Analysis
Certified Internal Auditor - Taiwan
Certified Internal Auditor
Business Continuity Management Lead Auditor
Information Security Management Lead Auditor
Information Technology Service Lead Auditor
Greenhouse gas emissions Auditor
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 SCRUM Master
Certified Basic Proficiency for foreign exchange personnel
Certified Basic Proficiency forcredit officer
Certified Product insurance salesman
69
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
Professional Qualifications and Experience
Independence Criteria
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
Chairman, Vice Chairman, CEO, President
and Honorary Vice Chairman 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. and Independent Director for Public
Welfare of Starlux Airlines Co., 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%.
May 8, 2023
Number of Other
Public Companies in
Which the Individual
is Concurrently
Serving as a
Remuneration
Committee Member
3
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
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
70
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 5th committee ran from August 27, 2021 to August 26, 2024.
There were four Remuneration Committee meetings during 2022(A) and the committee member
qualifications and attendance records are as follows.
Attendance
in Person (B)
4
4
4
Attendance Rate (%)
[B/A]
100%
100%
100%
Wen-Chung Shen
Min-Chih Hsuan
Duei Tsai
Convener
Committee Member
Committee Member
By Proxy
0
0
0
Name
Title
Remarks
■ 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
4th Meeting
(14th Term)
2022.3.15
Resolution Adopted by the Remuneration Committee
1. To approve the proposal of the distribution of compensation to employees and directors
for the year 2021
2. To approve the first mid-year employees’ bonus of the year 2022
▲Resolution Adopted by the Remuneration Committee (2022.3.15):
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 Chairman, there was no objection addressed 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 of and voting
on those proposals. Accordingly, to avoid a conflict of interest, Directors Jui-Tsung
Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, avoided discussion and voting on this proposal. Upon
solicitation of comments by the chairman, there was no objection addressed and the
resolution was adopted unanimously by the remaining Directors present.
71
Board of
Directors
Meeting
5th Meeting
(14th Term)
2022.5.11
6th Meeting
(14th Term)
2022.8.12
Resolution Adopted by the Remuneration Committee
1. To approve the proposal for the appropriated percentage for the remuneration of
employees and Directors of the year 2022
2. To approve employees’ salary adjustment of the year 2022
▲Resolution Adopted by the Remuneration Committee (2022.5.11):
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 Chairman, there was no objection addressed 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 of and
voting on those proposals. Accordingly, to avoid a conflict of interest, Directors Jui-
Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also
acting as managerial officers of Compal, avoided discussion and voting on this proposal.
Upon solicitation of comments by the chairman, there was no objection addressed and
the resolution was adopted unanimously by the remaining Directors present.
1. To approve the Directors’ Remuneration for the year 2021
2. To approve 2nd mid-year employees’ bonus for the year 2022
▲Resolution Adopted by the Remuneration Committee (2022.8.12):
The resolution was adopted unanimously by the Committee Members present.
▲Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1:
Chairman Sheng-Hsiung Hsu asked the Independent Director Min-Chih Hsuan to act as a deputy
chairman to preside at this meeting for discussion and voting on this proposal. Since an
interested party relationship exists, the Directors (i.e., Sheng-Hsiung Hsu, Jui-Tsung Chen, Wen
Being Hsu, Chieh-Li Hsu, Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia Chou, Chung-Pin Wong,
Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng and Anthony Peter Bonadero) recuse and
exclude themselves from discussion and voting on this proposal to avoid conflict of interest.
Upon solicitation of comments by the deputy chairman, there was no objection addressed and
the resolution was adopted unanimously by the remaining Directors present.
・Motion 2:
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, if an interested party relationship exists among any Directors and
any agenda proposals, such Directors shall recuse and exclude themselves during
discussion of and voting on those proposals. Accordingly, to avoid a conflict of interest,
Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who
are also acting as managerial officers of Compal, avoided discussion and voting on this
proposal. Upon solicitation of comments by the chairman, there was no objection
addressed and the resolution was adopted unanimously by the remaining Directors
present.
7th Meeting
(14th Term)
1. To approve the compensation of Employee bonuses in cash of year 2021
2. To approve the proposal for 2022 year-end employees’ bonus
72
Board of
Directors
Meeting
Resolution Adopted by the Remuneration Committee
2022.11.11 ▲Resolution Adopted by the Remuneration Committee (2022.11.11):
The resolution was adopted unanimously by the Committee Members present.
▲Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1 and 2:
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, an interested party relationship exists between any Directors and any
agenda proposals, such Directors shall excuse themselves during discussion of and voting
on those proposals. Accordingly, to avoid a conflict of interest, Directors Jui-Tsung Chen,
Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, avoided discussion and voting on this proposal. Upon
solicitation of comments by the chairman, there was no objection addressed 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.
73
3.3.5
Corporate Sustainability Development
Assessment criteria
1. Does the Company conduct 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?
Actual governance
Yes No
Summary description
Yes
To fulfill the company's commitment to sustainable development and improve the company's
overall capacity in ESG risk management, Compal Electronics established a Sustainability
Committee (the "Committee") with the approval of the board of directors in March 2022.
Composed of three members appointed by the board of directors, more than half (two) of the
members in the Committee are independent directors, and the member Chung-Pin Wong
is
elected by all Committee members as the chairperson. Holding at least one meeting a year, the
Committee is responsible for taking point in explaining company policies and positions externally,
defining goals and directions internally, integrating resources, reviewing action plans, monitoring
execution progress, and reporting results to the board of directors.
Composition, Responsibilities, and Operations of the Sustainability Committee, Board of Directors'
Supervision of the Sustainability Committee. Please refer to page 88-89.
For the 2022 Sustainable Development operation and implementation please refer to page 90-93,
the targets and plans of 2023 Sustainable Developmen please refer to page 94.
The results of implementation are also disclosed in our Annual Report, Sustainability Report, and
on our corporate website/CSR sustainability website.
Deviation and causes
of deviation
No deviations were
found
2. Has the Company set up a full-
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?
Yes
▓ The Group performs risk identification, assessment and analysis, response and management
at least once a year.
▓ The scope of execution includes parent company and subsidiary company.
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
into "Strategy," "Finance," "Operation," and "Legal Compliance",
"Environment".
2. Risk assessment
issues
Through a risk analysis matrix, the likelihood and impact of risk issues are evaluated respectively,
No deviations were
found
74
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
and ranked by the result of the evaluation. Among them, "supply chain material interruption
risk", "risk of overseas factory expansion" and "infectious disease spread " were rated as the top
three risk issues
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 profits, the
Company implements real-time production and precise control of inventory management.
However, the conflict between Russia and Ukraine could lead to shortages of semiconductor-
related raw materials, and 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) Risk of overseas factory expansion
Due to the changes in the international situation such as the China-United States trade war,
the demand for international strategic planning of customers, as well as the fact that
multinational factory operations can strengthen the company's flexible and efficient
management model and build the advantage of continuous and uninterrupted operations,
the demand for overseas expansion of operating bases is increasing However, factors such as
geopolitics and infectious diseases may affect the smoothness of the supply chain, thereby
75
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
affecting the company's ability to flexibly produce and respond flexibly. In response to this
risk, the company intends to take the following measures:
a. Prudent investment evaluation and analysis, drawing on other past business failure cases
and taking into account national policies and research reports of professional institutions
(for example, geopolitical risk index)
b. Introduce local professionals and establish a management team with international vision
and risk awareness
c. Build an "agglomeration economy" with strategic partners, increase productivity, reduce
production costs and expenses through resource sharing, increase the degree of
localization of the supply chain, and coordinate with existing suppliers to set up cargo
distribution centers around the new factory.
(3) Infectious disease spread
The global spread of emerging infectious diseases is fast, the disease is unpredictable and the
fatality rate is high. Once an outbreak occurs, it will have a major impact on the economy and
change consumers' lifestyles and consumption habits. Taking the novel coronavirus epidemic as
an example, the demand of online shopping, remote video equipment or home office has
soared, and the performance of related industries has skyrocketed. However, as the epidemic
slows down, the performance of related industries benefiting from the epidemic will return to
normal, and even face the problem of stagnant performance due to destocking. At the same
time, some countries have taken relevant measures to prevent the spread of the epidemic,
resulting in delays or interruptions in supply chains and logistics delivery. In addition, employees
are exposed to high health threats. If they are quarantined due to the epidemic, the continuous
operation of related businesses will be tested. In response to this risk, the company intends to
take the following measures:
a. The anti-epidemic team at the headquarters plans five major-oriented anti-epidemic
policies, including office control, access control, going abroad/returning to Taiwan,
course/event control, and restaurant control. At the same time, in response to changes in
the government's epidemic prevention policy at any time, we will flexibly adjust the
76
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
3. Environmental issues.
(1) Has the Company established an
appropriate environmental
management system according
to its industrial characteristics?
Yes
company's epidemic prevention policy.
b. Both Taiwan and overseas factories formulated emergency plans for epidemic prevention
immediately, set up emergency epidemic prevention and control teams, and formulated
procedures to prevent abnormal personnel, control and track close contacts of abnormal
persons, and prepared emergency plans, and carried out nucleic acid sampling for all
employees when necessary. In addition, declarations are made through multiple channels
such as the dedicated line of the epidemic prevention team, employee suggestion boxes,
mailboxes of the epidemic prevention communication group, and telephone to
comprehensively monitor and prevent the spread of the epidemic
Compal has established environmental sustainability 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 2022,
no violation of the environment laws or regulations has occurred.
77
No deviations were
found
Assessment criteria
(2) Is the Company committed to
improving the efficiency of
resource utilization and using
recycled materials with a low
impact on the environment?
Yes No
Yes
(3) Does the Company assess the
Yes
risks and opportunities of climate
change for the enterprise now
and in the future and take
measures to deal with climate-
Actual governance
Summary description
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.
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%, a total of 23 laptop projects meet the
requirements
Although the operating model has changed due to the unstable power supply at the location of the
factory, the power consumption intensity is 353 kWh per million of revenue, which is 33 kWh higher
than that of 2021 per million of revenue, but we are still actively promoting energy conservation in
factories, setting 100% by 2050 The long-term goal of using renewable energy is to continue to promote
and maintain solar power generation systems, and to purchase renewable energy. PCP, KS3, CDT, CD,
CQA passed the ISO 50001 energy management system certification, and completed the construction of
the "Energy and Environmental Monitoring" platform, which can instantly understand the energy
consumption of plants, Calculate the daily energy usage budget according to the production capacity,
and provide employees with energy-saving reminders at any time.
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
78
Deviation and causes
of deviation
No deviations were
found
No deviations were
found
Assessment criteria
related issues?
Yes No
Summary description
Actual governance
Deviation and causes
of deviation
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
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 costs.
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 2022, Purchase 8,008,485 kWh of photovoltaic power generation, 113,604,723 kWh of
hydropower generation and 20,000,000 kWh of green electricity certificates.
Risk 3. Improve the energy efficiency standards of various assets and increase operating cost.
79
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes No
Summary description
Action 3. The "Energy and Environment Monitoring" platform has been completed, which can
immediately understand the energy consumption of the plants, calculate the daily energy
usage budget according to the production capacity, and provide energy saving tips to
employees at any time; create new means to improve energy efficiency, and choose energy-
saving products when energy-consuming equipment needs to be replaced. We have actively
introduced external counseling units, and a total of 5 plants have passed the ISO 50001
energy management system certification and are on par with the EP100 target.
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
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.
Due to the Covid-19, In 2022, an online supplier conference was planned, and a
professional consultant team was specially invited to explain the topic of "creating a
sustainable value chain through SBT and supply chain management" in order to improve
80
Assessment criteria
Actual governance
Yes No
Summary description
suppliers' willingness and ability to manage carbon.
Deviation and causes
of deviation
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 95-96.
81
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 63% 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
2021
Unit: Tons
2022
22,445.151
220,617.737
24,633.557
2,554,897
6,046.5
1,482.9
21,251.4272 (Note)
190,569.0017 (Note)
19,512.714 (Note)
2,499,769
8,321.5
1,002.2
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
82
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 are.
‧ 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 dissatisfaction 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 protects the employees from
retaliation
If employees would like to complain about a situation that happened in Compal, such as the
human resources system, occupation, employee benefits, and forced labor, discrimination,
sexual harassment and so on or any unreasonable incident, they can report via the internal
website or e-mail, and we commit to confidentiality and can 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.
83
Yes No
Yes
Assessment criteria
(2) Has the Company established
and implemented reasonable
employee welfare measures
(including compensation, vacation,
and other benefits) and properly
reflected the operating
performance or the results of
employee compensation?
(3) Does the Company provide
Yes
employees with a safe and healthy
work environment? Are
employees trained regularly on
safety and health issues?
Actual governance
Summary description
■ Employee Benefits
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 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 of the Company and personal job performance.
In addition, the Company aims to create a diverse and equal working environment. In 2022, 38.86%
of worldwide Compal employees are women, and 29.2% of supervisors are women. The Company
is committed to cultivating local talent in overseas factories. In 2022, the proportion of local
supervisors in China and Brazil were 90.68% and 93.1%.
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, working environment monitoring,
waste disposal, emergency response procedures, etc.
The Company organizes health and safety training for employees on a regular basis as a means to
prevent occupational accidents and ensure workplace safety. In addition, we analyze the causes of
occupational accidents and provide suggestions and measures to improve the situation.
84
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
(4) Has the Company established an
effective career development
training program for its
employees?
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?
In 2022, 3,915 employees had completed their training for a total of 9,545 hours, and the number
of occupational accidents among employees was 151, involving 151 employees (accounting for
0.21% of the total number of employees).
Related Verification Scenarios:
All major site implement ISO 45001 OH&SMS and commit to maintain sustainable operations for
employees’ working environment.
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.
No deviation was
found
No deviations were
found
In 2022, a total of 763 training sessions (both internal and external) were organized; these courses
delivered 718,685 hours of training and 190,216 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.
85
Yes No
Yes
Assessment criteria
(6) Does the Company have a
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?
Deviation and causes
of deviation
No deviations were
found
Actual governance
Summary description
Compal is a responsible purchaser, and we are dedicated to improving the efficiency of sustainable
supply chain management and meet international sustainable standards. New suppliers are
required to sign the "Compal Procurement Contract" to regulate information security, and the
products traded must comply with international, national and regional environmental laws and
regulations. According to different product categories, suppliers are required to have international
quality and environmental standards such as ISO9001, ISO14001, ISO13485, ISO17025,
IATF16949...etc. As the global trend pays more and more attention to issues such as greenhouse
gases, water resources and waste, Compal combines the corresponding ISO into supply chain
management gradually.
As a member of RBA, we require suppliers to undertake social responsibilities and sign the
"Commitment Letter to Comply with RBA (Responsible Business Alliance) Code of Conduct
Standards", which includes five aspects of RBA: labor, health and safety, environment, ethics, and
management. In recent years, in order to keep up with international ESG norms, we have adjusted
and added the "Compal Supplier Code of Conduct", which is in line with the RBA guidelines and
raises the requirements for suppliers. At the same time, it is necessary to sign the "Declaration of
Prohibition/Not Supporting/Not Using "Conflict Minerals"" to make suppliers understand and
commit to the importance of banning conflict minerals.
In terms of sustainable risk management, Compal conducts a sustainable assessment of suppliers
every year. The assessment is conducted using the RBA SAQ questionnaire. The assessment results
show the sustainable risk of the supplier. Audits are conducted for high sustainable risk
manufacturers in accordance with the RBA VAP standard. A total of 11 suppliers were audited by
Compal in 2022, manufacturers with poor performance must improve within a time limit. Through
the annual self-assessment and auditing of suppliers, we collaborate with suppliers to improve
sustainable performance.
As the international sustainable issues extend, we invite suppliers to follow Compal's footsteps and
philosophy, and together take care about the social issues of environment, labor, health and safety.
Continue to improve the resilience and perseverance of the sustainable supply chain through the
86
Yes No
Yes
Assessment criteria
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?
Actual governance
Summary description
above actions.
The Company has published annual CSR reports (The name was 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 2022, we received the Platinum Award of
this award and Taiwan Top 100 Sustainable Model Enterprises Award.
Deviation and causes
of deviation
No deviations were
found
87
▓ Composition, Responsibilities, and Operations of the Sustainability Committee
To fulfill the company's commitment to sustainable development and improve the company's overall capacity
in ESG risk management, Compal Electronics established a Sustainability Committee (the "Committee") with
the approval of the board of directors in March 2022. Composed of three members appointed by the board of
directors, more than half (two) of the members in the Committee are independent directors, and the Convenor
Chairman Chung-Pin Wongis elected by all Committee members as the chairperson. Holding at least one
meeting a year, the Committee is responsible for taking point in explaining company policies and positions
externally, defining goals and directions internally, integrating resources, reviewing action plans, monitoring
execution progress, and reporting results to the board of directors.
Based on the four major aspects of Economy, environment, society, and governance ("EESG"), the Committee
is composed of eight task forces, including "Innovation", "Customer Relationship", "Supply Chain",
"Environment", "Responsible manufacturing", "Human Resources", "Social Participation", "corporate
governance", "information security", and "risk management". Composed of the heads of departments from
business sectors across different regions, task forces are responsible for stipulating the operating guidelines,
development tools, and workflow of each project, making annual plans through regular meetings, checking
operational directions and execution progress, and reporting results to the Committee. Committed to
promoting sustainable development strategies, Compal Electronics will continue to contribute to
environmental protection and the low carbon economy transition.
1. Professional Qualifications and Experience of Sustainability Committee Members
Identity
Name
Professional Qualifications and Experience
Director
Chung-Pin Wong
Independent
Director
Duei Tsai
Independent
Director
Wen-Chung Shen
Master of Management Science, National Chiao Tung University
Chairman of Compal Broadband Networks, Inc. and Poindus Systems
Corp., and President of Compal
The individual has rich knowledge and adequate experience in
computer industry, business operations, performance evaluation, risk
management, which is extremely helpful to the company's
development. The Director possesses more than 30 years of work
experience required for the business of the Company and of corporate
governance.
PhD, Graduate Institute of Electrical Engineering, National Taiwan
University
Independent Director of Taiwan High Speed Rail Corporation, TTY
Biopharm Company Ltd. and Independent Director for Public Welfare
of Starlux Airlines Co., Ltd.
The individual has professional capability in the communications
network field, and rich knowledge as well as adequate experience in
the company management and information security protection, which
will help the company strengthen relevant management measures.
The Independent Director possesses more than 30 years of work
experience required for the business of the Company.
Department of Electrical Engineering, National Taiwan University
Chairman of Her Tuo Co., Ltd., and Director and Executive Vice
President of Compal
The individual has rich knowledge and adequate experience in
electronics industry, business operations, risk management, which is
extremely helpful to the company's development. The Independent
Director possesses more than 30 years of work experience required for
the business of the Company and professional innovation capability in
R&D.
88
2. Operations
The term of the 1st committee is from March 15, 2022 to August 26, 2024.
In 2022, the Sustainability Committee held two meetings (A) and the qualifications and attendance of
Committee members are as follows:
Title
Name
Convenor Chairman
Committee member
Committee member
Chung-Pin Wong
Duei Tsai
Wen-Chung Shen
Attendance in
Person(B)
2
2
2
By Proxy
0
0
0
Attendance Rate
(%)[B/A]
100
100
100
Remarks
Topics of discussion in the Sustainability Committee 's meeting:
Meeting Date
Topics of Discussion
Resolution and Follow-up
1st Meeting
(1st Term)
2022.3.15
2nd Meeting
(1st Term)
2022.5.11
1. Election of the Chairman of the 1st
Chung-Pin Wong is elected by all
Sustainability Committee.
members as the Chairman of the
1. Report the implementation result of
Sustainability for the 2021
2. To approve the targets and plans of
Sustainability for the year 2022
Sustainability Committee.
Upon solicitation of comments by the
Chairman, there was no objection
addressed and the resolution was
adopted unanimously by the Committee
Members present, and report to the
Board of Directors.
Upon solicitation of comments by the
Chairman, there was no objection
addressed and the resolution was
adopted unanimously by the Committee
Members present, all of which have been
submitted to the Board of Directors for
resolution.
▓ Board of Directors' Supervision of the Sustainability Committee
In March 2022, the Board of Directors appointed three directors as members of the Sustainability Committee
to manage sustainability issues, and the Sustainability Committee is required to report to the Board of
Directors on a regular basis on the implementation of sustainability initiatives. In 2022, the Sustainability
Committee held one meeting to report to the Board of Directors, the topics include (1) the implementation
of sustainability goals and objectives in 2021, and (2) setting annual goals of 2022. The Board of Directors
must evaluate the success of the strategies proposed by the Sustainability Committee, review their progress
from time to time, and urge the Sustainability Committee to make adjustments as needed.
89
▓ The implementation results of 2022 Sustainable Development
Item
Results
Corporate
Governance
Supply Chain
Management
Environmental
Sustainability
1. We were awarded the 8th Corporate Governance Evaluation top 21-35 % in the Publicly
traded company group, which was held by Taiwan Stock Exchange (TWSE).
2. We were selected into the FTSE4GOOD Index for the seventh consecutive year and in the
FTSE4Good TIP Taiwan ESG Index for the fifth consecutive year. 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 2022 Happiness Enterprise online
voting by 1111, Human resource agency, 317th of Fortune Top 500, 1345th of Forbes Top
2000, 4th in the "Top 2000" Manufacturing Industry by Common Wealth Magazine.
4. The Compal Sustainability report in 2022 was certified by SGS Taiwan Ltd., by using the
assurance standards of the AA1000 AS, GRI Standards and SASB Standards core options.
Meanwhile, the report won the Platinum Medal of Taiwan Corporate Sustainability Report
Award of TCSA and Taiwan Top 100 Sustainability Award.
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, 2021 Sustainability Report disclosures in compliance with TCFD and SASB
standards.
6. We were ranked Taiwan Best of Germany iF Product Design Award from 2017-2022 and 10th
of iF Worldwide Design Award.
1. We comply with human rights and conflict mineral standards. In 2022, we implemented the
policy of "Non-use of conflict minerals’ policy and completed a survey (CMRT) of 863
suppliers’ conflict minerals with a completion rate of 100%.
2. To maintain good relationships with suppliers continuously, the Company held an online
supplier conference in 2022. The content included, "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". 205 staff members of suppliers participated online.
3. Comprehensive systematic control over raw material hazardous substance, 40 new
substances were added in 2022 and all projects comply with latest regulations and customer
regulations, Halogen free projects to increase by 5%, Substance full-disclosure projects to
increase by 6%, Inclusion and at least 19% of digitalized hazardous substance report.
1. We participated in the Carbon Disclosure Project (CDP) climate change and water safety
questionnaire. Both were ranked at management tier in 2022.
2. With starting from the source reduction, promoting waste reduction and recycling, NJCand
CQA plants continue to promote UL2799 management systems, KS1, KS2 obtained UL2799
zero waste landfill platinum certification.
3. Continue to promote the ISO 50001 energy management system, improve energy efficiency,
and purchase 8,008,485 kWh of photovoltaic power generation, 113,604,723 kWh of
hydropower generation and 20,000,000 kWh of green electricity certificates, and actually
reduce emissions by 82,277,274.011 KG CO2e
4. Using the Task Force on Climate-Related Financial Disclosures (TCFD) framework, identify
potential major climate risks and opportunities, formulate response strategies and goals,
continue to track management in a qualitative and quantitative manner, and complete the
Kunshan plant climate governance report
5. We participated in the "Waste 3C Recycling Activities" of customers; at which, 114 Compal
employees joined the event.
90
Item
Results
6. Responding to the sustainable development goal of the United Nations "SDGs 13 Climate
Action ", "SDGs 14 Life below Water " and "SDGs 15 Life on Land ":
87 colleagues participated in the Yuan-Tan River – the Enterprises Joint Beach cleanup
action.
42 colleagues participated in Xialiao beach cleaning.
202 colleagues participated in environmental education activities at the Mangrove
Ecocenter.
Innovation
2.
1. According to the principle of environmental protection, sustainable and recycled design.
In 2022, 7% products in voluntary compliance with Ecolabel, 5% recovered material usage
in each commercial notebook project, USB PD included projects to raise by 27%, and High
energy density cell included projects to raise by 16%, Reduce 5.14% of auxiliary material
amount and ESG patents to be 6.7% of all applications.
The 81 products that have passed the Electronic Product Environmental Assessment Tool
(EPEAT 2018); in which, 44 products have obtained the Gold level certification, 26
products have obtained the Taiwan Environmental Protection Label, 26 products have
obtained the TCO Label, and 36 products have obtained the CECP label. 1 mobile phone
product obtained EPEAT Gold level certification. There are also 4 models of LCD monitors
that have obtained the CECP label and 4 models that have obtained the TCO label.
113 notebook products and 4 LCD monitors have obtained the latest Energy Star
certification.
The EPEAT-compliant annual revenue percentage for laptops was 78.1% and the Energy
Star-compliant annual revenue percentage was 81.9%. The EPEAT-compliant annual
revenue percentage of 99.9% for mobile products. The Energy Star-compliant annual
revenue percentage for monitor products was 99.4%.
5.
75 notebook products have completed the full substance disclosure announcement.
6. Halogen-free products list: 91 types of laptops, 16 types of smart phones, and 6 types of
3.
4.
5G devices.
91
Item
Results
Social Welfare
1. In 2022, 2,321 employees participated various public welfare activities of the COMPAL and
HCI Foundation, and donations exceed NT$ 5.9 million, with a total social welfare investment
of more than NTD$ 40 million.
2. Donated 79 sets of "Apache Wireless Handheld Ultrasonic Systems" from Aco Healthcare, a
subsidiary of the Group, to a medical institution on an offshore island, to protect the outlying
islands with Smart medical biotechnology, to help improve the medical equipment in the
offshore islands of Taiwan, and innovate the technology that serves the local people. The
donation amount is more than NT$20 million.
3. Hold a series of activities called “Charity can’t stop”, that cooperates with social enterprises
and social welfare groups in public welfare, and donates materials to help vulnerable
children.
In-Kind Donations for A Heartwarming New Year: 145 employees donated 3,843 items of
living materials to help 200 poor families in the Sanchong District.
Summer Fundraising event – Enjoy Summer: 76 employees donated 2,075 pieces of daily
necessities, including rice, noodles, canned food, biscuits, toothpaste, and soap, we mainly
helped with Compal’s Long-term care and cooperation of the "Kangaroo Project" of the
Center of Care Services for Rural Area Education in Taiwan of Fu Jen Catholic University
and community endpoints such as The HCI Welfare Charity Foundation in children and
elders in the New Taipei and Taoyuan communities.
4. Compal held the third "Healthy Charity" series activities, A total of 40 colleagues attended
Compal’s 10K team for the Neihu Charity Running Activity. Purchasing products from social
enterprises to encourage 57 employees to participate in activities and meet health standards.
5. Compal co-organized the Second “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 social vulnerable people and to
build a beautiful, good and healthy society.
6. Sponsored the "Kangaroo Project" from the Rural Center of Fu Jen University for the 4rd year,
for the after-school tutoring center and community teacher training program at Linkou
Dayuan, Sanduo Elementary School and FU-Shing Martial Arts Elementary and Junior High
School. Participating in the public welfare cooperation project of local libraries by "Kaohsiung
7. Promoted SDGs4 Quality Education of UN, participating in the "Compal Reading Volunteer
Project" to promote reading education in rural villages for the 15th year, to serve 1,091 school
children and residents. In 2022, a total of 151 mobile digital devices and 250 smart wireless
lamps to children of disadvantaged families at Pingtung and Taoyuan in 2022, so that their
learning were not limited by environment and able to study healthily.
8. We regularly hold volunteer service activities. In 2021, we had 3 volunteer service activities
with 115 participants. We also held blood donation activities. (195 employees donated 298
units of blood, a total of 74,500cc).
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Item
Results
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
high cardiovascular risk, with a 100% achievement rate by 2022.
2. To promote gender equality in the workplace, we have provided gender-friendly toilets for
employees and parking spaces for pregnant women.
3. To improve fertility rates, we provide a TWD 66,000 maternity subsidy to employees for each
newborn baby. 186 Compal babies were born in 2022. Compal has provided 3,196 birth
rewards for 12 consecutive years, with a total amount exceeding TWD 210 million.
Employee Care
4. We continue Employee Assistance Program (EAP) in 2022. EAP counseled a total of 119 cases
about family and workplace relations issues.
5. Hold employee health promotion activities to take care of employees' physical and mental
health.
Healthy Breakthrough: A public service activity that combines intellectual and kinesthetic
abilities, allowing colleagues to understand their own physical status and construct their own
healthy exercise. 53 colleagues completed the activity and 53 public service gifts were given
away.
The programs
of personnel
training
Compal is a member of the GOLF academic alliance. In 2022, GOLF academic alliance hosted 3
presentations and Compal hosted 15 presentations of its own campus presentations, for a total
of 18 presentations and successfully admitted 113 students to participate in one-year
internship. We had 227 students to register online courses. We got 92.4 point for overall
satisfaction of Compal's internal intern lecture course in 2022.
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▓ The targets and plans of 2023 Sustainable Development
NO.
Targets
Plans
1
2
3
Focus on responsible
manufacturing and design
of green products, work to
the goals of circular
economy and Net Zero
emissions by 2050.
Recruiting talents and
establishing key
knowledge, enforcing
human rights policies &
gender equality in the
workplace to enhancing
the overall
competitiveness of the
enterprise.
(1) Confirm carbon emissions based on the SBT methodology to achieve the
reduction target, reduce greenhouse gas emissions by 4.2% compared to
2022.
(2) Assist subsidiaries to develop the carbon inventory system and complete
inventories in Scope 1 & 2 of the greenhouse gas.
(3) Promote energy efficiency and increasing the purchase of renewable
energy, reduce by 20% power consumption in comparison with the
previous year.
(4) Increase 5% of products with voluntary ecolabel in comparison with the
previous year.
(5) Recovered material usage in each commercial notebook project > 5%.
(6) The proportion of digital reporting on hazardous substances increased by
10% compared to the previous year.
(1) Training to grow key knowledge and precision recruitment and systematic
talent cultivation to enhance acknowledgement to Company. Proportion
of local IDL as key talents ≧ 8%. Global IDL employee turnover ≦ 17%.
(2) Fulfill the workplace requirements as provided in the ISO 45001
management system and provide a safe working environment. Global
incident rate (temp-workers included) <0.18%.
(3) Follow the company’s human rights policies and promote gender equality.
No human rights penalty incident.
(4) Supported the Hsu Chauing Social Welfare Charity Foundation and active
participation in ecological conservation. Increase 5% of the social
investment in comparison with the previous year.
Strengthening corporate
governance and enhance
the sustainable supply
chain to improve
sustainability evaluation
in the long run.
(1) Improve sustainability evaluation in the long run to accomplish the top
20% of the listed groups in corporate governance assessment.
(2) Expand the system coverage of risk control and internal control,
Completion 80% of system coverage of risk control.
(3) Focusing on corporate integrity management and anti-corruption,
enhance employee awareness and strengthen relevant training, and no
violation with a fine penalty of more than NT$1M.
(4) Suppliers
1.RBA declaration/SAQ questionnaire completion rate > 99%
2.Conflict mineral due diligence - supplier questionnaire completion rate
100%
3.Key suppliers – online SASB audit completion rate 100%
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▓ Climate-related risk and opportunity identification table
Type
Risk and Influence
Adaption and Opportunity
Strategy and Law
‧
International trends and the environmental regulations in China have become
stricter. Therefore, we are faced with fines or risks of plants closing down resulting
from more environmental 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.
Operating costs increased as a result of more percentage of renewable energy in
order to meet international trends and customer requirements.
Technology
‧
Production and costs increased due to development and inclusion of recyclable
material alternatives to meet international trends and customer expectation.
Transfer
of Risk
Increased capital input and operating
costs as a result of change and upgrade of equipment to enhance assets energy
efficiency and low-carbon production.
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.
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.
Global awareness of environmental protection is gradually rising. 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 promotes the operation
mode of saving electricity, water and waste.
Continue to increase the use of solar power in production bases, and cooperate with green
power purchases to increase the proportion of renewable energy used.
Taking in the lessening of waste and reuse of resources in the designing phase; encompassing
green materials and low polluting alternatives; adopting designs with less use of natural
resources and more recycled ones.
Taking initiatives to meet international trends and customers’ expectation by inserting recycled
plastics in electronic products.
Improve energy use efficiency. When energy-consuming equipment needs to be replaced,
choose energy-saving products, provide employees with energy-saving reminders at any time,
and actively introduce external counseling units. A total of 4 factories have passed the ISO
50001 energy management system certification. It is also expected to promote the connection
of equipment to the Internet. Maximize the economic benefit of each unit of energy, in line
with the goal of EP100.
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.
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Acute
‧
Climate change might lead to rainfall type changes and the increase of frequency
in rainstorms, droughts, and typhoons. These will bring about blocks in road
transportation, increase the burden on AC devices, health issues and poor
attendance of employees, and damage to plants and machines due to floods.
Concrete
Risks
Chronic
‧
Climate transformation is likely to worsen the air, cause drought, increase the
frequency of heatwaves, change water quality, and affect employees’ health.
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.
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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
In order to help the company manage carbon emissions in the long term, meet the global greenhouse gas
reduction requirements, keep the global average temperature rise within 1.5°C by the end of this century, and
set the ScienceBased carbon Target, Compal has committed set SBT (Science Based Targets) in April 2022, and
it is expected to pass the review before April 2024
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 2015, Compal was selected as part of CDP's Climate Disclosure
Leadership Index (“CDLI”) for the first time. In 2022, 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
Company has completed the certification of the energy management system of PCP, KS3, CDT and CD Plants in
2019, CQA Plants in 2022, and has extended relevant experience to other plants.
■ Supply chain carbon management
As one of the world’s key IT producers, Compal uses “information platforms” and “workshops” to keep suppliers
informed of the latest energy/carbon reduction technologies and green living, and inspires them to commit to
active care for the local environment.
97
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, in 2022, an online supplier conference was planned, and a professional consultant team
was specially invited to explain the topic of "creating a sustainable value chain through SBT and supply chain
management" in order to improve suppliers' willingness and ability to manage carbon.
■ Corporate environmental education
The company continues to introduce corporate environmental education into employee training and green
experience activities, and continues to respond to the "Taiwan Marine Waste Management Action Plan",
starting from source reduction, caring for rivers, signing the "Tampui River Convention", and holding Tamsui
River ecological tours, invite company employees, supply chain partners and cooperative social welfare groups
to participate in environmental education and beach cleaning activities. Over the past few years, more than
5,000 people have shared the life stories of every corner of the land of Taiwan. The company fully supports the
"experiential" environmental education action from top to bottom, and colleagues and family members
enthusiastically participate in it from bottom to top; calls on colleagues to trickle down into a river, use the
power of consumers to choose safe food, and give customers gifts as New Year's gifts to let demand come
change the supply and support sustainable agriculture, forestry, fishery and animal husbandry.
And introduce relevant concepts into the company's product design, specially set up courses related to circular
economy, invite professional lecturers to explain the actions and requirements of international and customers
in the ESG field, so that colleagues can reduce the impact of products on the environment from R&D and
manufacturing shock.
■ Supporting green and 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 2022, we invited 7 social enterprises and public welfare groups,
including Taiwan DB Art Collective, Yuan care, Doghome Org.,A good day, TriBake, Yu-Cheng Social Welfare
Foundation, Kanner Village Social Enterprise to join Compal’s Social & Green Market Event. We encouraged
employees to learn more about social enterprises and give them more support through the event.
In 2022, Compal collaborated with the Yu-Cheng Social Welfare Foundation/Jixian Sheltered Workshop, I Can
Sheltered Workshop, Hanner Family, Taiwan DB Art Collective, Yuan care, Doghome Org., A good day,
TriBake ,and employees have donated more than TWD 700,000.
■ 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 “2022 Blood donation activity”: 195 people participated in and
donated 298 bags of blood, totaling 74,500 cc.
‧ Compal co-organized the second “Taipei Science and Technology Cup Love Earth Charity Road Run” in Taipei
Neihu Technology Park.
98
‧ Compal has teamed up with the "Kangaroo Project" from the Center of Care Services for Rural Area Education
of Fu Jen Catholic University for the 4rd year,, and ran after-school tutoring centers at Linkou Dayuan, Sanduo
Elementary School and FU-Shing Martial Arts Elementary and Junior High School.
■ 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.
‧ 2022 Fall Art and Imagination, Meeting with Little Teachers
“It turns out to be you” 251 colleagues serve as the Little Teachers of Heart Hope. 2022 “Compal Fall Art Festival
~The thanksgiving fare” arranged a gallery housing brilliant art pieces by Jia-Yi Elementary School art students.
A charity marketplace was constructed, and fun activities led by Compal colleagues to entertain 30 Jia-Yi
students.
■ Social welfare
(1) Budget sponsorship
‧ Donated 79 sets of "Apache Wireless Handheld Ultrasonic Systems" from Aco Healthcare, a subsidiary of
the Group, to a medical institution on an offshore island, to protect the outlying islands with Smart medical
biotechnology, to help improve the medical equipment in the offshore islands of Taiwan, and innovate the
technology that serves the local people. The donation amount is more than NT$20 million.
‧ Sponsoring of budgets for college volunteer clubs
In an attempt to encourage college students to participate in volunteer service, the Company has been
contributing TWD 600,000 every year since 2004 to sponsor college clubs in reading promotion directed at
children, after-school classes, and environmental education in locations that lack resources and for low-
income households. In 2022, 10 college clubs applied for sponsorship, 317 student volunteers participated
in sponsored volunteer activities in 2022, for which the Company contributed a sum of TWD 445,000 that
benefited 1,091children.
‧ Sponsoring of budgets for Compal Sunshine Scholarship
The "Compal x Sunshine Scholarships" has entered its 24th year, which provide "Outstanding Computer
Talent Scholarships" and "Computer Excellence Scholarships" for students with burns and facial
99
‧
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 Pingzhen Squad, Taiwan District of Kiwanis International, Taiwan Institute for Sustainable
Energy, Taiwan International Care and Exchange Association, Taiwan Mini Football Association, Taiwan
Semiconductor Circuit Design Association, Spinal Cord Injury Social Welfare Foundation, Golf Gap of
Learning & Field, A sum of TWD 5,792,000 was donated to the above mentioned entities in 2022.
(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 creative teacher and creative student 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
prepared exclusive gifts for Children's Day.
In 2022, a total of 151 mobile digital devices and 250 smart wireless lamps to children of disadvantaged
families at Pingtung and Taoyuan in 2022, so that their learning were not limited by environment and able
to study healthily.
In-Kind Donations for A Heartwarming New Year: 145 employees donated 3,843 items of living materials to
help 200 poor families in the Sanchong District.
‧
‧
‧
‧ Summer Fundraising event – Enjoy Summer: 76 employees donated 2,075 pieces of six daily necessities,
including rice, noodles, canned food, biscuits, toothpaste, and soap, we mainly helped with Compal’s Long-
term care and cooperation of the "Kangaroo Project" of the Center of Care Services for Rural Area Education
in Taiwan of Fu Jen Catholic University and community endpoints such as The HCI Welfare Charity
Foundation in children and elders in the New Taipei and Taoyuan communities.
‧
‧ Sharing Care with Mooncake Charity Activity: 839 colleagues donated Mid-autumn moon cake sets to 3,118
disadvantaged school children in New Taipei, Taoyuan, Taichung, Miaoli, Changhua, Pingtung, Hualien,
Hsinchu and Kaohsiung.
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 2022, 66
Compal colleagues have taken part in activities to help disadvantaged children from 3 to 13 years old and
prepared exclusive gifts for Children's Day.
(3) Compal Christmas Elf of visited the Dingshe Elementary School.
Compal Volunteers visited the Taoyuan City Luzhu Dist. Dingshe Elementary School with the Hsu Chauing
Social Welfare Charity Foundation to share the festive atmosphere with teachers and students, and
distributed Christmas gifts to 60 students to express their blessings.
100
■ Formulate human rights protection policies and specific management plans, as well as related policies and
implementation
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.
The above relevant regulations are disclosed on the official website: “CSR- Employee Relationship- Human
Rights Protection and Health Care” and Sustainability reports.
■ Workplace diversity, gender equality and implementation
‧ Compal is committed to promoting gender equality. To ensure that employees are not treated differently
based on gender and sexual orientation, the Headquarters and the plants in each area have all established
the management process document of “Regulation for No Enforcement, Discrimination, and Harassment".
‧ For pregnant female employees, Compal also provides special care. We provide parking space application
‧
for pregnant female employees who are two months before delivery.
In order to create a more inclusive environment and a more flexible space, Compal established gender-
friendly toilets in 2022, to encourage the popularization of diversity awareness and respect for individual
differences.
■ Domestic culture heritage supports
Compal values the cultural heritage of the community and supports the promotion of indigenous arts, culture
and music. 2022 Compal Fall Art Festival ~ the thanksgiving fare arranged a gallery housing brilliant art pieces
by Jia-Yi Elementary School art students. At the same time, 30 children from Chia-Yi Elementary School were
invited to come down to the mountain to sing the Paiwan group songs for Compal colleagues, and to have a
warm and reunion thanksgiving event.
■ 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.
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(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
labor-management relations, the Company subsequently assembled an
incidents for more harmonic
Environment Safety Promotion Committee that specializes in the development of environment safety plans. Any
environment safety-related policies and goals proposed are subject to review during the Environmental Safety
Management Review Meeting. Once reviewed, the Committee becomes responsible for supervising work safety
units in the implementation of safety and health-related measures, auto inspections, maintenance, and training
to eliminate hazardous factors in the environment. In addition, the Committee also supervises relevant
departments in completing hazard prevention and loss control systems.
(3) Execution
‧ Fire safety equipment/facilities plans and execution:
Appropriateness and adequacy of fire safety
equipment/facilities are reviewed whenever there is a change to the layout of the business premises. Locations
of fire safety equipment/facilities and evacuation routes are clearly labeled on each floor. The Company also
engages professional and qualified fire safety inspectors to conduct annual fire safety inspections and reports
according to law.
‧ Water/power plans and execution: The Company promotes proper awareness and implements appropriate
control on all uses of water and power equipment for more effective conservation of energy and resources. The
administrative department is responsible for the day-to-day inspection of power usage, power systems, and
water equipment. All inspection findings are detailed in the “Safety and Health Equipment Inspection Log” and
any issues discovered are rectified immediately.
‧ Cleaning, monitoring, and control of industrial waste: Handled by the Factory Affairs Division of various
factories and General Affairs Department of the headquarters. Waste generated 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.
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‧Emergency response procedures: These procedures have been established to guide the Company through disruption
of production, information, and raw material supply in the occurrence of natural or man-made disasters. Incident
resolution procedures:
Hazard alert occurs
Incident reporting
Confirmation of
Hazard
YES
Activate emergency
response
NO
Update
records
Confirmation of
damage control
NO
Request external
support
m
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e
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YES
Level 1 hazard:
Post-disaster recovery
Any death or 3 major injuries or
SP: Occurrence of Level 1
of preventive measures
Incident investigation and proposal
hazard must be escalated to
the Senior Risk Management
Committee
higher
Loss of work hour exceeding 1
day
Loss of property above USD 1
million
(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.
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3.3.6
Ethical Corporate Management
Assessment criteria
Yes No
I.
Establishment of integrity
policies and solutions
1. Does the Company have an
Yes
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 2, Article 7 of the
“Ethical Corporate
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 “Rules and Procedures for Board of
Directors Meetings” 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 legal entities they represent.
The Board of Directors has resolved to adopt the relevant integrity management policies, and the
Directors and high-level management have issue d a statement of compliance with the integrity
management policies, committing to actively implement integrity management.
Deviation and causes
of deviation
No deviations were
found
Yes
When the Company’s internal audit prepares the next year’s 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
104
Yes No
Yes
Assessment criteria
Management Best Practice
Principles for TWSE/GTSM
Listed Companies”?
3. Does the Company stipulate
the operating procedures,
behavior guidelines, and
disciplinary and grievance
systems in its unethical
behavior prevention plan and
implement them and
regularly review and revise
the plan?
II.
Integrity actions
1. Does the Company evaluate
Yes
the integrity of all
counterparties it has business
relationships with? Are there
any integrity clauses in the
agreements it signs with
business partners?
2. Has the Company set up a
dedicated unit under the
Board of Directors to
promote ethical corporate
management and regularly
(at least once a year) report
to the Board of Directors its
ethical corporate
management policy and plan
to prevent unethical behavior
as well as its supervision of
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” (hereinafter, “Procedures and
Behaviors”) as an incentive to insiders and outsiders to report unethical conduct or misconduct.
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.
Deviation and causes
of deviation
No deviations were
found
The Company requests each of its suppliers to sign the "Letter of Undertaking for Compliance with
the RBA Code of Conduct by Vendors” (hereinafter referred to as “RBA Code of Conduct”), according
to which suppliers are requested to abide by local laws and 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 department and
the legal affairs office 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 auditor’s office 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 on-line teaching courses on the e-Learning platform, including legal affairs related training
on information security, personal information protection act, relevant company policies and
employees’ code of conduct so as to familiarize all employees with the aforementioned guidelines
and thereby facilitate the promotion of honest management.
No deviations were
found
105
Assessment criteria
the implementation?
Yes No
3. Does the Company have any
policy that prevents conflict
of interest, and channels that
facilitate the report of
conflicting interests?
Yes
Actual governance
Summary description
Deviation and causes
of deviation
Status of Operation and Implementation in 2022:
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 1,072 suppliers
with transaction records, 1,070 have signed the RBA Code of Conduct commitment or completed
the RBA Code of Conduct questionnaire, making for a signing rate of 99.81%. In addition, 10,867
employees completed 19,524 hours of integrity management related training, including:
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
1,497
1,590
326
7,450
4
Hours
2,637
8,745
1,956
6,184
2
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 Director, managerial officer or other interested party of the Company attending, or
present at a Board of Directors’ meeting shall explain the important contents of his/her/its interest
at the Board of Directors' meeting if he/she or the legal entity he/she represents has an interest in
the proposals listed in such meeting. In addition, if it is likely to prejudice the Company’s interest,
he/she shall not participate in the discussion and voting, and shall recuse himself/herself from the
discussion and voting, and shall not exercise voting rights as a proxy on behalf of other Directors.
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 the Company discovers that a
potential conflict of interest exists involving themselves or the legal entity 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 the 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
106
No deviations were
found
Assessment criteria
Yes No
Actual governance
Summary description
Deviation and causes
of deviation
commercial activities other than those of this Company.
The Company’s Personnel Management Rules and “Employee’s Statement of Ethics and
Compliance” have introduced rules to identify, supervise, and manage conflicts of interest for
business activities that are more highly prone to dishonest behavior. There are channels in place for
Directors, supervisors, managerial officers, stakeholders, and board meeting participants to state
their conflicting interests with the Company.
To prevent leakage of material inside 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’s audit plan, unethical
behavior was included in the scope of risk assessment, and relevant audits are performed
accordingly.
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
4. Has the Company established
Yes
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?
5. Does the Company organize
internal or external training
on a regular basis to maintain
business integrity?
Yes
III.
Implementation of
whistleblowing system
1. Does the Company provide
Yes
The Company has mailboxes in place to receive malpractice reports from within or outside the
No deviations were
107
Assessment criteria
incentives and means for
employees to report
malpractice? Does the
Company assign dedicated
personnel to investigate the
reported malpractice?
Yes No
Actual governance
Summary description
Deviation and causes
of deviation
Company. Once a report has been sent to the mailbox, it will be referred to the appropriate
department and personnel depending on the nature of the underlying issue to handle or conduct
related checks.
found
The Company has established procedures to report matters for filing, assigning, verifying, etc., and
requires the responsible person to take relevant actions depending on the results of the
investigation. The case content and whistleblower information shall be processed in confidential.
No deviations were
found
2. Has the Company established
Yes
standard operating
procedures for the
investigation of malpractice
reports, follow-up measures
after investigation, and the
relevant confidentiality
mechanism?
3. Does the Company assure
malpractice reporters that
they will not be mistreated
for making such reports?
Enhanced information
disclosure
IV
Yes
The Company's relevant regulations and Employee Code of Conduct are clearly regulated, requiring
the responsible unit or person not to disclose the content of the case and the identity of the
whistleblower, and to take necessary protective actions to ensure that the whistleblower is not
treated inappropriately or retaliated.
No deviations were
found
1. Has the Company disclosed
its integrity principles and
progress onto its website and
MOPS?
Yes
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-Major internal policies” and the “CSR and Sustainability- Sustainable
Management- Compal's code of Conduct” section of its website.
No deviations were
found
V
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.
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."
108
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/#major-internal
‧ 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
‧ Risk Management Committee Charter
‧ Corporate Governance Best Practice Procedures
‧ Sustainable Development Best Practice Principles
‧ Risk Management Best Practice Principles
‧ Code of Conduct for Directors and Managers
‧ Code of Conduct for Employees
‧ Ethical Corporate Management Best Practice Principles
‧ Business Integrity Procedures and Behaviors
‧ Regulations on Prevention of Insider Trading
‧ Procedures of Application to Suspend and Resume Trading
‧ Rules of Self-Evaluation of the Board of Directors and Functional Committees Performance
‧ Company's Risk Management Policies and Procedures
‧ Compal Group's Business Continuity Management Policy
‧ Procedures for Handling Material Inside Information
‧ Rules Governing Financial and Business Matters Between this Company and its Affiliated Enterprises
109
3.3.8 Other Important Information Regarding Corporate Governance
Please refer to the Company’s website→ CSR
https://www.compal.com/csr/zh/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
110
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, 2023
The Company states the following with regard to its internal control system during fiscal the year 2022,
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, 2022 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, 2023, where 0 of the 14 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)
111
2. If an independent auditor is entrusted with reviewing the internal control system, the independent auditor’s
report: None.
3.3.10 Penalties imposed against the Company and its staff, or penalties imposed by the Company against
its staff for violations of internal control or regulations; state any corrective actions taken in the
most recent years up till the date of the annual report: None.
3.3.11 Major Resolutions Made in Shareholders’ Meeting and Board Meetings
1.
Shareholders’ meeting
■ Time: 9: 00 am, June 24, 2022
■ 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) Approved the amendment to the “Articles of Incorporation”
(4) Approved the amendment to the “Procedures for Acquisition or Disposal of Assets”
(5) Didn't Approve the amendment to the “Procedures for Lending Funds to Other Parties”
(6) Approved the amendment to the “Rules and Procedures of Shareholders Meeting”
(7) Approved the release of non-competition restrictions for Directors
■ Post-meeting Execution:
(1) The amendments to the Company’s Articles of Incorporation were approved and registered on file by
the Ministry of Economic Affairs on July 20, 2022.
2. Major Resolutions of Board Meetings
Date
3rd Meeting
(14th Term)
2022.02.10
4th Meeting
(14th Term)
2022.03.15
Material resolutions
1. Approved senior level management change
2. Approved loan to Kinpo&Compal Group Assets Development Corporation
3. Approved the Company acquisition of the common shares of Poindus Systems Corp. by
public tender offer.
4. Approved the issuance of the Letter of Support by the Company to facilitate its subsidiary
in obtaining credit facilities from financial institutions
5. Approved authorizing 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
112
5th Meeting
(14th Term)
2022.05.11
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 evaluation of CPAs’ independence and competence in performing the financial
report audit.
16. Approved the first mid-year employees’ bonus of the year 2022
17. Approved the issuance of the Letter of Support by the Company to facilitate its
subsidiary in obtaining credit facilities from financial institutions
18. Approved authorizing the Company to obtain credit facilities from financial institutions
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 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 authorizing the Company to obtain credit facilities from financial institutions
14. Approved the plan to execute 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.
1. Approved the enactment to the “Compal Group's Business Continuity Management
Policy”
2. Approved the Directors’ Remuneration for the year 2021
3. Approved 2nd mid-year employees’ bonus for the year 2022
4. Approved the 1H 2022 Consolidated Financial Review Report
5. Approved the Kaohsiung branch moving to a new location
6. Approved for a loan to Henghao Technology Co. Ltd.
7. Approved for a loan to Unicom Global, Inc.
8. Approved the Company to adjust the lending interest rate and interest payment date of
the capital loan to the subsidiaries
6th Meeting
(14th Term)
2022.08.12
7th Meeting
(14th Term)
2022.11.11
9. Approved the issuance of a Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
10. Approved authorizing the Company to obtain credit facilities from financial institutions
1. Approved annual audit plan for year 2023
2. Approved the compensation of Employee bonuses in cash of year 2021
3. Approved the proposal for 2022 year-end employees’ bonus
4. Approved the 3Q 2022 Consolidated Financial Statements
5. Approved the amendment to the “Rules and Procedures for Board of Directors Meetings”
6. Approved the amendment to the “Procedures for Handling Material Inside Information”
7. Approved the amendment to the “Internal Control System”
113
8. Approved to indirectly invest in the establishment of a Vietnamese subsidiary and obtain
the land use rights by the subsidiary.
9. Approved the proposal of the subsidiary’s planned gross project budget of the leased land
and commissioned to build the new group operating headquarters building
10. Approved the issuance of a Letter of Support by the Company to facilitate its subsidiary
in obtaining credit facilities from financial institutions
11. Approved the issuance of Letter of Undertaking by the Company to facilitate its
subsidiary in obtaining credit facilities from financial institution
12. Approved authorizing the Company to obtain credit facilities from financial institutions
1. Approved for senior level management change
2. Approved the issuance of a Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
3. Approved authorizing the Company to obtain credit facilities from financial institutions
1. Approved the Internal Control System Statement for the year 2022
2. Approved the proposal of the distribution of compensation to employees and directors for
the year 2022
3. Approved the Audited Consolidated Financial Report and Parent Company Only Financial
Report for the year 2022
4. Approved the Business Report for the year 2022
5. Approved the Business Plan for the year 2023
6. Approved the proposal for Distribution of Earnings for the year 2022
7. Approved the proposal for cash dividends from Earnings for the year 2022
8. Approved the proposal of cash distribution from Capital Surplus
9. Approved the relevant matters regarding the distribution of the year 2022 cash dividends
and cash distribution from capital surplus to shareholders
10. Approved the convention of 2023 Annual General Shareholders’ Meeting
11. Approved the Sustainability Report Material Topics for the year 2022
12. Approved the targets and plans of Sustainability for the year 2023
13. Approved fund loan to 100% owned subsidiary Compalead Eletrônica do Brasil Indústria
e Comércio Ltda.
14. Approved fund loan to 100% owned subsidiary Compal Eletrônica Da Amazônia Ltda.
15. Approved fund loan to 70% owned subsidiary Kinpo&Compal Group Assets Development
Corporation
16. Approved the “Non-Assurance Service Pre-Approval Policy - General Policy“
17. Approved evaluate CPAs’ independence and competence of performing financial report
audit.
18. Approved the first mid-year employees’ bonus of the year 2023
19. Approved authorizing the Company to obtain credit facilities from financial institutions
1. Approved the amendment to the “Corporate Governance Best-Practice Principles”
2. Approved the amendment to the “Management Rules for Preventing Insider Trading”
3. Approved the amendment to the “Risk management policy of Compal Group”
4. Approved the enactment to the “Risk Management Best Practice Principles”
5. Approved the enactment to the “Risk Management Committee Charter”
6. Approved the appointment of the term 1st Risk Management Committee members
7. Approved the amendment to the “Sustainable Development Best Practice Principles”
8. Approved the enactment to the “Human Rights Policy”
9. Approved the 1Q 2023 Consolidated Financial Review Report
10. Approved the release of non-competition restrictions for the managers
11. Approved the release of non-competition restrictions for Directors
12. Approved employees’ salary adjustment of the year 2023
13. Approved the proposal for the appropriated percentage for the remuneration of
employees and Directors of the year 2023
114
8th Meeting
(14th Term)
2023.02.07
9th Meeting
(14th Term)
2023.03.15
10th Meeting
(14th Term)
2023.05.08
14. Approved to obtain newly issued shares of ARCE Therapeutics, Inc. by participating in the
capital injection by cash.
15. Approved the proposal for providing Corporate Guaranty Letter to Quanta Computer Inc.
16. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
17. Approved authorize the Company to obtain credit facilities from financial institutions
3.3.12 Major Issues of Record or Written Statements Made by Any Director or Supervisor Dissenting to
Important Resolutions Passed by the Board of Directors: None.
3.3.13 Resignation or Dismissal of the Company’s Key Individuals, Including the Chairman, CEO, and
Heads of Accounting, Finance, Internal Audit, Corporate Governance and R&D: None.
115
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
2022.01.01~
2022.12.31
9,600
3,470
13,070
-
Note: Other non-audit fees: Transfer pricing report of $600,000, tax consultation of $2,783,000, business registration $22,000
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
116
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
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
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.
Situation
Party involved
Voluntarily terminated the
CPA
Not
Commissioner
Not applicable
commission
applicable
Will no longer accept/continue
Not
Not applicable
the commission
applicable
N.A.
Accounting principles or practices
Disclosure of financial report
Did he/she have opinions that differed
from that of the publisher?
Yes
Scope or step of auditing
Other
N.A.
Description
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
V
N.A.
Name of CPA
Date commissioned
Kuo, Kuan-Ying and Chien, Szu Chuan
Approved by the Board of Directors on March 26, 2021
Items of consultation and results on the
accounting methods for specific
transactions, accounting principles and
potential opinions for financial report
prior to commissioning
Written opinion from succeeding CPA
on items of disagreement with the
former CPA
N.A.
N.A.
3. The Company shall disclose the content of the reply letter from the former CPA. The former CPA's response to
matters as described in Item 1 and Item 2-3 of subparagraph 6, Article 10 of the Standards: None.
117
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 For the most recent year and as of the date of publication of the annual report, changes in
Shareholding of Directors, Supervisors, Managers and Major Shareholders
Title
Name
Chairman
Vice-Chairman
And CSO
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
Ming-Chih Chang
Anthony Peter Bonadero
Sheng-Hua Peng
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
Chen Chang Hsu
Chun-Te Shen
Kuo-Chuan Chen
Chyou-Jui Wei
Wen-Da Hsu
Shi-Kuan Chen
Director
Director
Director
Director
Director
Director and
President
Director
Director
and Executive
Vice-President
Director
Director
and Executive
Vice-President
Independent
Director
Independent
Director
Independent
Director
Executive Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
2022
As of May 8, 2023
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
Unit: shares
0
0
0
0
0
0
(680,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
118
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Title
Name
2022
As of May 8, 2023
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
Chi-Wai Wan
Min-Tung Weng
Lo-Chun Lee
0
0
0
Sheng-Hung Li
(110,000)
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
Jyh-Shyan Liang
Vice-President Tzong -Ming Wang
Vice-President Fu-Chuan Chang
Vice-President Yong-Ho Su
Vice-President
Vice-President Yi-Yun Chang
Vice-President Hsin-Kung Mao
Vice-President Shih-Hong Huang
Vice-President Yi-Chiang Chiu
Jui-Chun Shyur
Vice-President
Peng-Hong Chan
CLO & VP
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
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 Chiao-Lie Huang
Vice-President Wei-Chia Wang
Vice-President Yau-De Chiou
Jen-Liang Lin
Vice-President
0
0
0
0
(100,000)
0
0
20,000
(90,000)
0
0
80,000
(280,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(100,000)
0
0
0
0
0
0
0
0
0
(5,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Note: 1. Vice-Presidents Chiao-Lie Huang, Wei-Chia Wang, Yau-De Chiou resigned in 2022, Vice-President Jen-Liang Lin
transferred in 2023.
119
3.7.1 Shares Trading with Related Parties:
Name
Reason
for
transfer
Transaction
date
Counterparty
Sheng-Hung Li
Sheng-Hung Li
Ching-Hsiung Lu
Gift
Gift
Gift
2022.05.09
2023.02.21
Yi-Je Li
Yi-Je Li
2022.08.26
Shao-Hsuan Lu
Father and Daughter
Counterparty's relationship
with the Company, Directors,
Supervisors, Managers, and
shareholders with more than
10% ownership interest
Father and Son
Father and Son
Shares
Transaction
price
110,000
100,000
100,000
22.1
23.5
22.6
3.7.2 Shares Pledged with Related Parties: None
120
3.8 Relationship among the Top Ten Shareholders
April 23, 2023 Unit: Shares
Name
Self
Shares held
Shareholdings of spouse
and minors
Total shares held in
the names of others
Shares held
Shares
Shareholding
Percentage
Shares
Shareholding
Percentage
Shares
Shareholding
Percentage
Spouse, relative of
second degree or
closer, and
relationships among
top 10 shareholders
Name Relationship
Cathay MSCI Taiwan
ESG Sustainability
High Dividend Yield
ETF。
Yuanta/P-shares
Taiwan Dividend Plus
ETF
Kinpo Electronics, Inc.
Sheng-Hsiung Hsu
Silchester
International Investors
International Value
Equity Trust
New Labor Pension
Fund
Yuanta Taiwan High
Dividend Low
Volatility ETF
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
Citibank (Taiwan) Ltd.
in custody for Norges
Bank
Labor Insurance Fund
0
0
0
0
0
0
0
0% None
None
0% None
None
0% None
None
0%
0% None
None
0% None
None
0% None
None
-
-
-
-
0
0% None
None
-
0
0% None
None
-
-
0
0
0% None
None
0% None
None
340,376,000
7.72%
206,638,295
4.69%
151,628,692
3.44%
-
-
-
-
-
-
8,975,401
0.20% 17,107,025
0.39%
104,163,000
2.36%
102,163,415
2.32%
61,473,000
1.39%
57,372,900
1.30%
54,255,652
1.23%
47,241,697
1.07%
44,143,526
1.00%
-
-
-
-
-
-
-
121
3.9 Ownership of Shares in Affiliated Enterprises
December 31, 2022 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.
Big Chance International Co.,
Ltd.
Compal Rayonnant Holdings
Limited
500,000,000
90,000,000
100,000,000
29,500,000
9,100,000
600,000
100,000,000
20,000,000
4,646,143
29,500,000
6,000,000
20,000,000
100.00
100.00
100.00
100.00
91.00
100.00
52.04
32.79
30.00
100.00
100.00
100.00
10,000,000
100.00
20,014,952
100.00
-
-
-
-
-
-
-
- 500,000,000
- 90,000,000
- 100,000,000
- 29,500,000
- 9,100,000
-
- 100,000,000
600,000
7,805,110
5,064,999
12.80
32.70
27,805,110
13,157,285
-
-
-
-
-
- 29,500,000
- 6,000,000
- 20,000,000
- 10,000,000
-
20,014,952
29,060,176
42.73 13,139,637
19.32
42,199,813
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
15,035,000
50.12
-
-
15,035,000
2,772,000
42.00
-
- 2,772,000
4,648,322
10,157,730
41,304,504
14,924,070
147,000,000
89,755,495
48,010,000
42,700,000
27.72
656,396
19.83 7,037,133
18.74 34,422,417
20.94
100.00
100.00
100.00
508,000
-
-
-
53.58 37,000,000
3.91
13.74
15.62
5,304,718
17,196,863
75,726,921
0.70 15,432,070
- 147,000,000
- 89,755,495
- 48,010,000
46.42 79,700,000
53,001,000
100.00
-
- 53,001,000
100.00
100.00
100.00
100.00
91.00
100.00
52.04
45.58
62.70
100.00
100.00
100.00
100.00
100.00
62.05
88.61
75.00
53.55
50.12
42.00
31.63
33.57
34.36
21.64
100.00
100.00
100.00
100.00
100.00
90,820,000
100.00
-
- 90,820,000
100.00
12,500,000
100.00
-
- 12,500,000
100.00
122
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
Auscom Engineering Inc.
Compal Europe (Poland) Sp. z
o.o.
CGS Technology(Poland) Sp. z
o.o.
Bizcom Electronics, Inc.
Compal Electronics (Holding)
Ltd.
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
-
-
-
-
-
-
- 3,000,000
-
136,080
-
245,911
-
100,000
-
1,000
- 6,424,516
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
-
-
-
100,000
-
50,000
Lipo Holding Co., Ltd.
98,000
49.00
102,000
51.00
200,000
Ascendant Private Equity
Investment Ltd.
31,253,125
34.72 44,750,000
49.72
76,003,125
UniCore BioMedical Co., Ltd.
20,000,000
100.00
Shennona Corporation
-
100.00
-
-
- 20,000,000
-
-
Starmems Semiconductor Corp.
3,500,000
35.00
1,000,000
10.00 4,500,000
Kinpo&Compal Group Assets
Development Corporation
Compal Ruifang Health Assets
Development Corporation
52,500,000
70.00
-
- 52,500,000
10,000,000
100.00
10,000,000
POINDUS SYSTEMS CORP.
11,768,199
56.04
44,000
0.21
11,812,199
Note: Investments made by the Company using the Equity Method.
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
84.44
100.00
100.00
45.00
70.00
100.00
56.25
123
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 8, 2023
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
124
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
3
35
329
1,069
216,444
0
217,880
8 451,701,098 730,396,575
1,830,513,624 1,394,535,320
0 4,407,146,625
0.00%
10.25%
16.57%
41.54%
31.64%
0.00%
100.00%
April 23, 2023
4.1.3 Share Ownership Distribution
Range of Shareholding (Unit:
Shares)
1 ~ 999
1,000 ~ 5,000
5,001 ~ 10,000
10,001 ~ 15,000
15,001 ~ 20,000
20,001 ~ 30,000
30,001 ~ 40,000
40,001 ~ 50,000
50,001 ~ 100,000
100,001 ~ 200,000
200,001 ~ 400,000
400,001 ~ 600,000
600,001 ~ 800,000
800,001 ~ 1,000,000
1,000,001 and over
Total
Number of Shareholders
Shareholding (Shares)
Percentage
April 23, 2023
45,187
124,546
25,802
8,247
4,471
3,692
1,650
1,030
1,652
689
347
106
84
50
327
217,880
9,257,951
274,166,004
197,193,546
101,947,422
81,435,234
93,044,833
58,487,876
47,823,017
118,110,996
96,582,456
98,048,269
51,511,896
58,052,493
43,889,480
3,077,595,152
4,407,146,625
0.21%
6.22%
4.47%
2.31%
1.85%
2.11%
1.33%
1.09%
2.68%
2.19%
2.22%
1.17%
1.32%
1.00%
69.83%
100.00%
4.1.4 List of Major Shareholders
Shareholder’s name
Shares held
Percentage (%)
April 23, 2023
Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF
Yuanta/P-shares Taiwan Dividend Plus ETF
Kinpo Electronics, Inc.
Silchester International Investors International Value Equity Trust
New Labor Pension Fund
Yuanta Taiwan High Dividend Low Volatility ETF
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
Citibank (Taiwan) Ltd. in custody for Norges Bank
Labor Insurance Fund
340,376,000
206,638,295
151,628,692
104,163,000
102,163,415
61,473,000
57,372,900
54,255,652
47,241,697
44,143,526
7.72%
4.69%
3.44%
2.36%
2.32%
1.39%
1.30%
1.23%
1.07%
1.00%
125
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
Before dividend
After dividend
2021
27.95
20.60
23.26
25.56
23.54
2022
27.20
20.55
23.24
26.69
25.48 (Note 1)
As of
May 8, 2023
25.80
22.60
24.10
25.66
-
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
Earnings
per share
Per-share
dividend
Analysis of
investment
returns
4,357,129,194
4,357,129,194
4,357,129,194
2.90
1.67
0.32
4,357,129,194
4,357,129,194
2.90
2.00
-
-
-
8.02
11.63
8.60%
1.67
1.20 (Note 1)
-
-
-
13.92
19.37 (Note 1)
5.16% (Note 1)
-
-
-
-
-
-
-
-
-
Note: 1. The 2022 distribution of earnings was resolved at the March 15, 2023 Board of Directors’ Meeting.
2. Book value per share and earnings per share based on the most recent quarterly data audited (reviewed) by CPAs before
the publication date of this annual report. Other fields based on data for the year as of the publication date of this
annual report.
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, domestic and international competition,
126
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 2022 distribution of earnings of shareholders’ dividends in the amount of TWD 4,407,146,625 was approved
by the Board of Directors Meeting on March 15, 2023. The aforementioned amount is set to be distributed as
an all-cash dividend of TWD 1.0 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 881,429,325, or TWD 0.2 per share. The total
cash distribution amounts to TWD 5,288,575,950.
‧
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 27, 2023, and cash distribution has been paid out on May 19, 2023
3. When there is a significant change in the expected dividend policy, it should be stated: None.
4.1.7 Impact on Business Performance and EPS resulting from Stock Dividend Distribution:
Not Applicable (The Company did not disclose 2023 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.
If the actual amounts differ from the amounts estimated, the differences are recorded as gains/losses in
127
the subsequent year as a change in accounting estimate.
3. 2022 employees compensation proposal passed by the board of directors
‧ Accrued employee compensation is TWD 750,945,090 and Directors compensation is TWD 39,709,200.
‧
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 2021 employee and Directors compensation:
‧ Accrued employee compensation is TWD 1,350,062,159 and Directors compensation is TWD
71,389,891.
‧ The 2021 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
128
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
2022
Year-to-date
May 8, 2023
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
7,426,799 units (May 8, 2023)
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 $ 4.76
USD $ 3.20
USD $ 3.90
USD $ 4.22
USD $ 3.74
USD $ 3.94
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.
■ Deposit and redemption of Compal shares
129
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
receives the above notice, it shall produce and issue global depository receipts representing the number of
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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.
■ 2022 Revenue contribution
Major Divisions
5C electronics
Other products
Total
(%) of Total Sales
99.4%
0.6%
100%
2. Current and future product development
■ Notebooks
In 2022, with the most real-time R&D efficiency, Compal launched notebooks equipped with the latest
processors from Intel and AMD. 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. Demand for notebooks shifted as the Covid-19
outbreak eased, with demand for Chromebooks and consumer notebooks cooling. The demand for commercial
and gaming notebooks was stable, and the product strategies of brand partners have changed accordingly.
Compal seized the opportunity to introduce innovative and advanced technology into product design and assist
customers to launch models with market competitiveness. It has achieved superior results amidst the fierce
competition in the business and game market. Entering 2023, Compal continues to launch new products with
high-end technical specifications in line with market trends and assist customers in obtaining higher market
share in various segments, creating a win-win situation for Compal and brand partners.
■ Ultraslim Notebooks
Innovative technology and extensive R&D capabilities have allowed Compal to maintain a leading position in
the industry. Compal produces an ultraslim Notebook, which uses the latest generation processor from Intel
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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 ultraslim notebooks in 2023. 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 notebooks to change typical usage patterns. Future notebook features should combine
productivity, mobility, a more user-friendly design, long battery life, and 5G connectivity. These features can
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 notebook 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 notebooks 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. With the
increasing popularity of 5G networks, 2-in-1 notebooks featuring portability and mobility, equipped with 5G to
surf the Internet at any time, have become the focus.
■ 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.
■ NTN (Non-Terrestrial Network) and satellite communication
NTN (Non-Terrestrial Network) is a new technology introduced in 3GPP Release 17 (Jun 2022) that leverages
satellite communication technology to expand the coverage of 5G networks. This enables the creation of a
global covered wireless communication network and build-up new markets for communication products and
services. With NTN technology developments, diversification and high reliability will become crucial in the
communication field, and will need to be integrated with Ka/Ku high-frequency band and B5G communication
protocol.
NTN communication achieves global wireless communication through satellite-linked ground stations (User
Terminals) or directly connected user devices (Mobile Devices, such as iPhone 14 had launched the Satellite
communication), and provides many new application scenarios, such as remote areas, deserts, mountains and
oceans. NTN technology enables the fulfilment of various communication demands, both of broadband
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network and IoT use cases. It is also widely applicable to communication needs in fields such as military,
aviation, smart transportation and cars"
■ 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).
The 5G universal integrated module complies with 3GPP Release R15/R16/R17 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 millimeterwaves etc. Modules also built with GPS / GNSS global positioning system, eSim and other
functions, all need foundational technology of coming 5G user equipment and AIOT applications & devices.
Based on long-term experience in consumer electronics design, research & development, and product
manufacturing, Compal provides various kinds of reference designs of 5G user equipment products,
collaborates with customers 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 & 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 ISC (Integrated Small Cells), ORU, ODU, OCU, 5G Network Management and
5G RIC (RAN Intelligent Controller) , 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 the consumer tablet and e-Reader market 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 trend of global tablet and e-Reader
market in recent years, Compal is also investing in creating breakthroughs in technologies, product features and
cost management, aiming to commercial and industrial tablet market to engage more business opportunity and
raise profits.
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■ Smartphones
Compal continuously provide technical design suggestions to customers for optimizing assembling processes at
factories, quality improvement and operation efficency. In addition to stabilizing OEM of 5G smartphone
business, Compal explore more business opportunities from entry premium segment to premium or unltra
segments.
■ 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
As the marketing demand grows up continually, Compal keeps development hearing technologies for bluetooth
hearable devices, including millisecond frequency adjustment, hearing protection, beam forming, Audio
Enviroment adjustment, and Fitting tool of Audiologist. Compal hearing total solutions and services will
continue to be applied to bluetooth headsets, PSAPs, OTC hearing aids and hearing aids.
■ Smart Display Products
As the COVID-19 begins to slow down and countries begin to open the border, the demand for smart displays
in the post-COVID-19 era will also be different. We continue to develop large-size displays, optimize image
quality design, adopt artificial intelligence (AI) image processing and sound processing, combine non-contact
touch solution, use antibacterial and environmentally friendly materials and other technologies to create an
immersive experience in product usage, and facilitate interactive convenience that take into account both safety
and environmental friendliness, satisfy multiple usage scenarios, enhance value-added services and new
business opportunities in the post-COVID-19 era.
■ 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.
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■ Smart Home Devices
The rise of the Internet of Things (IoT) and AI technologies has facilitated smart home hubs with smart voice
assistants to become a potential product in the industry. Compal have already been recognized by our global
customers for our engineering capability on Smart Speaker, Smart Display and Smart Camera products. In the
future, Compal will also use our core engineering capabilities to expand our product coverage in different smart
home devices and applications.
■ 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 the market has increased since the
technology progress of wearable devices in the past few years. Add to that, the Metaverse has become a hot
topic and has drawn customer attention 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
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5.1.2
Industry Overview
1. Current and future industry prospects
■ Notebooks
Global notebook shipments have skyrocketed in the past two years due to the rapid increase in demand for
remote office and distance learning. After entering 2022, the market demand has slowed down, and it has
encountered unfavorable factors such as the Ukrainian-Russian War, global inflation, and radical interest rate
hikes. In addition, the supply chain in 1H'22 was still unstable, so the annual shipment was only 211.9 million
units, nearly 19% decline in shipments compared to 2021. However, the shipments are still higher than the
average shipment level before the epidemic. Looking forward to 2023, the demand side will still be hindered by
economic downturn, and it is estimated that the notebook market will decline slightly. To seek more market
opportunities and increase revenue and profits, brand manufacturers have shifted their product strategies to
premium and high-value products, such as commercial notebooks, ultraslim notebooks, 2-in-1 notebooks,
gaming notebooks, and creator notebooks. Under such changes, more precise market segmentation, product
positioning and innovative design are required. Compal has rich experience, sophisticated technology, and
various exclusive patented technologies, and can jointly develop innovative and high-quality products that keep
pace with the times with brand partners to create market demand.
■ 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.
In 2022, the global shipment of ultraslim notebooks (<18mm thickness) has reached 71.65 million units. It is
estimated that the shipments of ultraslim notebooks will account for 35% of the global notebook shipments in
2023. 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 behaviors and consumers continuing to support strong demand for
gaming hardware with mean high shipment sales. The demand changes brought about during the epidemic
will continue to drive the sales of global gaming products. According to IDC, global gaming notebook shipments
in 2022 have reached 27.3 million units, accounting for about 12.8% of global notebook shipments. The demand
for gaming notebooks is stable, and its share in global notebook computer shipments is expected to rise to
14.5% in 2023.
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■ 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 global shipment of 2-in-1 notebooks in 2022 was
approximately 99.2 million units. It is estimated that brand manufacturers will launch more diversified 2-in-1
products integrating 5G network and AI-related applications in 2023, so the penetration rate in global notebook
shipments is expected to continue to rise
■ All-in-one (AIO)
The AIO market is currently dominated by HP, Lenovo, Apple and Dell. Those top brands account for more than
80% of market share. Brand manufacturers have successively launched large-size screen design to enhance
visual comfort. In addition, in order to meet the differences in usage requirements derived from different
scenarios, brand manufacturers are also striving to innovate in product specifications and designs. IDC predicts
that AIO shipments will be more resilient than traditional desktop computers. AIO shipments will be 10 million
units in 2023.
■ 5G Module, 5G User Equipment, 5G Small Cell and 5G O-RAN Private Network solution
According to the GSA, to end-2022, there are 245 operators officially providing 5G network communication
products and services in more than 155 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 10.6% of which is
provided by 5G communication. There are more than 1700 5G consumer products available in the global
market, across various 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
will improve 5G coverage and vertical applications.
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■ Tablets
Due to the impact of inflation and the end of the Covid-19 pandemic, demand for tablet computers has dropped
significantly. According to IDC data, global tablet shipments in 2022 were approximately 162 million units, a
3.3% decline from the previous year, ending two years of continuous growth and indicating a changing market
trend. This shows a fact: during an economic downturn, most consumers will be more hesitant to choose a
higher specification tablet which costs more. Cost-effectiveness and ease of use remain key factors in the
market.
However, there is still demand for mid-range tablets for educational purposes, as they can serve as a cheaper
alternative to PCs. In addition, due to the economic downturn, there is also a trend of using consumer tablets
in industrial or vertical applications for cost saving. Compal will continue 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 2022 was about 1.2 billion units, with a YoY decrease
of 9.1%. Over a half of sales volume was 5G smartphone. IDC also predicts that the ratio of 5G smartphone will
increase to 80% in 2026. The main reason for the decline in sales volume was conservative by consumers due
to the high global inflation and unemployment rate. Compal continue to flexibly adjust production bases in line
with customers’ strategies, aiming to expand their market share with low cost advantage and advanced
specifications.
■ Smart Wearable Devices
According to IDC, in 2022, smart watches market continued to grow at an annual growth rate of 9.4%. Apple is
still the top one vendor by market share. Apple launched new release new product line - Apple Watch Ultra -
and Google also launched its first smart watch – Pixel Watch - drove the growth momentum to high-end
segments. In 2023, 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
Canalys' Smart Personal Audio Analysis, the unit sales of global TWS hearable device market shipments in 2022
will decrease by 2% year-on-year to 288 million units. According to DIGITIMES Research, the acceptance of TWS
wireless Bluetooth headsets in the market has increased significantly. In addition to the continuous
development of various major manufacturers in the TWS consumer market, the hearing aid market will also
start to receive attention in 2022.
With modern technology and environmental changes, people are more likely to be exposed to high volume,
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resulting in younger hearing loss and an increase in the overall population of hearing loss. However, due to
various reasons, only a very few people have used hearing device. In order to seize related business
opportunities, major global consumer electronics and medical manufacturers are vying to invest in the hearing
device industry, which is trending towards consumerization.
The United States, the world's largest hearing aid market, will finally promulgate the "Over-the-Counter Hearing
Aid Act" this year to consumerize and popularize traditional medical hearing aids. TWS hearing aids that are
more consumer-oriented are similar to OTC hearing aids that are more medical-oriented. They are all aimed at
mild to moderate hearing loss groups and are light medical products.
It can be seen from the actions of mainstream brands to enter the field of auxiliary listening that the
development trend of high-end TWS with hearing function can be expected in the future, and the market
potential is huge. After the passage of the OTC hearing aid bill, TWS hearing aids are expected to be launched,
sharing the mild to moderate hearing loss market together with OTC hearing aids. As a consumer-grade
affordable alternative to traditional medical-grade hearing aids, TWS hearing aids and OTC hearing aids can play
a role in solving the lack of penetration in the hearing aid market and connecting more professional hearing
aids.
Compal will continue to develop bluetooth hearing technologies and total solutions to create hearing products
such as TWS, PSAPs, OTC hearing aid and hearing aids.
■ Smart Display Products
According to market research companies, the global LCD TV industry saw a decline in overall shipments in 2022,
with approximately 204 million units shipped worldwide, a 4% decrease from the previous year. This was due
to various factors including the COVID-19 pandemic, the Ukraine-Russia conflict, and rising inflation. The North
American market was particularly impacted by record high inflation, which led to decreased demand and a
surplus of inventory in distribution channels. As a result, TV shipments in the region declined by 14% year-over-
year, with major brands resorting to price cuts to clear inventory and causing market price chaos. Looking ahead
to 2023, challenges such as the US-China trade tensions, the Ukraine-Russia conflict, and inflation will continue
to affect the market, leading to conservative demand and reduced panel production capacity. In response to
these challenges, our company will optimize operations and maintain flexibility, deepen strategic partnerships,
and focus on R&D to adapt to the changing market conditions.
■ 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
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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
The application of wireless network technology in smart home appliances is getting mature, bringing
convenience and real-time connectivity to consumers, pushing the growth of the smart home market. In
addition to continuous development on smart voice assistants and cloud services to build a complete smart
home ecosystem, Amazon and Google have also begun promoting the Matter protocol to break the smart home
ecosystem barriers, which has attracted more and more manufacturers to enter this market. In the future, smart
home applications will have more advanced and mature artificial intelligence (AI) used on voice interaction,
image recognition, and smart home automation, providing consumers with smarter and more convenient user
experiences.
■ IoT Vertical Solutions
I ndustries 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 robots (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.
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■ 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. Sine 2021, we built a plant in North America to locally supply customers’ demand.
■ Servers
Server shipments have grown about 0.3% as compare with last year, mainly due to increased demand for cloud
services. According to IDC, shipment of x86 servers totaled 16.76 million units in 2022. This is expected to rise
to nearly 17.18 million units in 2023. X86 servers accounted for 96.5% of total server shipments. Rack-mounted
servers represent a higher market share because they are both energy efficient and scalable.
2. Association between upstream, midstream, and downstream industry participants
■ Notebooks
The notebook industry is now mature and Taiwanese manufacturers have developed comprehensive
partnerships with upstream, mid-stream, and downstream suppliers. This fully-fledged supply system gives
manufacturers the advantage of being able to adjust to market changes quickly and flexibly. 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,
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. As geopolitics and chip wars intensify, Taiwanese ODM/ OEM will become
more competitive in the global notebook industry. 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 critical 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.
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■ Ultraslim Notebooks
As an ultraslim 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 ultraslim 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 identical to those of conventional notebooks, with the
addition of some tablet parts suppliers and manufacturers. Support of the existing supply system and its
advantage of integration across suppliers, allows Compal to maintain full control of the development of key
components. This speeds up research and innovation of new features because brand manufacturers and users
of 2-in-1s continue to add new requirements. Despite the increasing complexity and challenges ahead, Compal
remains confident and continues to make improvements as well as continuing to bring new products and
concepts to the market.
■ All-in-one (AIO)
The supply chain and manufacturers of AIOs are generally identical to those of conventional notebooks. The
upstream supply structure is similar to that for general PCs, with the addition of suppliers of large touch screen
panels. HP, Lenovo, and Dell focus not only on commercial users but also home multimedia users. Apple’s
emphasis is on professional applications and usage.
■ 5G Module, 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
Experiencing the IC shortage in 1st half and demand decline in 2nd half in 2022, Compal have adopted more
flexible production and procurement strategies in 2022, such as using the same components in the design phase
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as possible for each product, to flexibly utilize raw materials and reduce the uncertainty generated by supply
chain fluctuations. In addition, to reduce production risks, Compal is also expanding overseas production sites
outside of China and actively developing local suppliers to ensure a competitive material cost, on-time delivery
and quality to meet customer 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.
■ Smart Hearable Devices
For the Bluetooth hearing device market, Compal has built supply chain of hearing devices including chipset
suppliers and key components suppliers. Compal also has started cooperation with major channel partners to
jointly build an ecosystem of Bluetooth hearing devices. Compal will deliver high-quality Bluetooth hearing
devices to consumer and medical hearing markets.
■ Smart Display Products
In 2022, the global supply chain was significantly impacted by the COVID-19 pandemic, China's zero-COVID
policy, and the ongoing US-China trade tariffs. To mitigate risks, we have been actively diversifying our
operations outside China and expanding to other regions. We have integrated resources across different regions
and levels of the supply chain to optimize production, control operational costs, and provide flexible supply to
meet customer demand. Our goal is to ensure that our operations are agile and adaptable to changing market
conditions while maintaining high levels of service and quality.
■ 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.
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■ Smart Home Devices
Compal provides a wide range of smart home products, including smart speakers, smart displays, and smart
cameras for the development of intelligent home applications. In collaboration with upstream, mid-stream, and
downstream partners, we can offer various customized hardware devices, software support, and platform
integration solutions tailored to the needs of different system integrators and industrial customers.
■ 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) Instruments, equipment, and accessories:
• Smart sports
Compal has invested substantial resources into the development and integration of smart sports vital sign
monitors. These monitors can gather measurable data and are useful for designing training programs. This
information can be exchanged over the cloud to facilitate remote training and communication between
athletes and trainers, helping athletes to follow the most effective physical and technical training methods
and 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
(2) Medical AI
• Cardiovascular disease prediction
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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.
(3) Management system:
• Digital charts and smart ward solutions
Compal has introduced digital charts through an alliance with foreign partners. This product category
offers the potential to aid physicians in diagnosis and reduce the workload on nurses, unlike the
conventional management system used by existing medical institutions. Additionally, it can be integrated
with many different data management systems currently used in hospitals. Digital transformation is
already happening within the healthcare system, and Compal is currently working with several hospitals
to develop digital charts and smart ward solutions. Healthcare organizations will no longer operate in
isolation, but will be able to coordinate their activities towards the establishment of a uniform standard
and 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.
■ 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
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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
• Notebooks have matured to a point where brand manufacturers are shifting their focus towards higher
priced and more fully featured products, such as commercial notebooks, ultraslim notebooks, 2-in-1s, and
gaming notebooks in a search for greater market opportunities, revenue, and profits.
• There are more usage scenarios for notebooks, such as gaming notebooks for e-sports, creator notebooks
for content creation, and always-connected 2-in-1 notebooks for hybrid work.
• The global notebook market has entered an inflection point in the expansion cycle in 2022 and is expected
to face challenges again in 2023 due to the macroeconomic uncertainty. To boost the buying of notebooks,
not only Intel and AMD in the x86 camp will launch a new generation of processors with improved
performance, chip manufacturers in the ARM camp (such as Qualcomm, MediaTek, etc.) also plan to
launch performance-optimized processors to seize the mid-to-high end Notebook market share. As chip
manufacturers and brand manufacturers cooperate more closely in system integration, it is expected that
the competition between the x86 and ARM camps will become more intense.
• Benefiting from the new-generation graphics cards launched by Nvidia and AMD successively, the
performance and power efficiency of the two have reached the largest improvement in history, which is
expected to drive gamers and content creators to replace or purchase new notebooks. Therefore, gaming
notebooks and creator notebooks have a bright future.
• The increasing popularity of mobile devices and online applications have called for more robust and
diverse security functions, such as fingerprint recognition, face/ voice recognition, and camera shutter.
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.
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• An always connected feature can help to work remotely.
■ Gaming Notebooks
• Powerful performance is essential for gaming notebooks.
• 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 notebooks 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.
■ 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 user terminals
and 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 large display and designs for automation.
• Focus on more eco-friendly product design such as recycled material and reparable design.
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• 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.
■ 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
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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 had input
from hearing experts to help develop professional acoustic products to create product differentiation and make
us more competitive in the market.
■ Smart Display Products
Our company has been working closely with strategic partners to drive innovation in the development of high-
end models. These models will feature large-sized, ultra-high-resolution display panels, the latest video
streaming platform solutions, and technologies such as artificial intelligence (AI) image and sound processing,
all while using eco-friendly materials. By combining these technologies with home networking products, we aim
to create a diverse range of applications and opportunities. This approach will enable us to stay ahead of the
competition and maintain long-term competitiveness by accumulating leading-edge technology capabilities.
■ AR/VR Smart Devices
• AR head-mounted displays and spatial sensing modules have been adopted by vertical application
customers and entered the European and American markets.
• AR/VR new Platform (XR Platform) completed the development stage.
■ Smart Home Devices
• Smart speakers, smart displays and smart cameras with AI technologies that enable multiple modes of
interaction such as voice input, touch, gesture and computer vision.
• Support to the Matter protocol allows connections to a wider range of smart home products from different
ecosystems.
• Services integrated with cloud and edge computing and data analysis for 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) Instruments, equipment, and accessories:
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‧ 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 top sports experts worldwide for the
development of products that are more suitable for professional athletes. Compal is also working with
fitness centers on the creation of customized, exclusive packages that deliver the most effective sports
solutions and communications to both users and businesses.
‧ Medical equipment and healthcare-related products
Medical equipment with Internet connectivity is a trend for 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 to provide 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.
(2) 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 have made it possible for Compal to introduce the solutions 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.
■ Automotive electronics (AE)
Telematics, in-vehicle-infotainment, and Advanced Driver Assistance Systems (ADAS).
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■ Servers
The rack-mounted server is still the mainstream product today because it can be easily maintained and scaled
up as business grows. Tower servers are still favored among SMEs for their low cost, but their market share has
been steadily declining. Blade servers are relatively expensive to set up and may gradually be replaced by more
simplified High Density servers.
The number of servers required for Data Centers has increased continuously year after year. Although the
demand for conventional enterprise-grade servers has gone down a little, demand for both types of servers will
ultimately reach equilibrium. In addition to cost-performance, design flexibility and quick response to customer
needs are the two most decisive factors for a product’s success.
5.1.3 Research and Development
1. Research and Development Expenses over the past year
Year
R&D expenses
Operating revenue
Unit: TWD Thousands; %
R&D expenses as a percentage of
operating revenue
2022
17,929,525
1,073,245,915
2023 first quarter
4,384,698
209,458,784
1.7
2.1
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 (360Hz) 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 recognition, camera shutter, facial
recognition, and 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 Ultraslim notebooks, and its designs have
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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 ultraslim 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
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
• 5G O-RAN Solutions unveiled in 2023 MWC Barcelona and obtaining certification and mass production
in 2023, those include ORU, ODU, DU inline accelerator and OCU equipment and solutions.
• Qualcomm X72/75 5G R17 M.2 / LGA module will be developed in 2023.
• MTK based T830 5G R16 LGA module will be developed in 2023.
• Qualcomm X62/65 5G R16 M.2 / LGA module will be mass-produced in 2022.
• 5G integrated small cell developed in 2021 and obtained product certification.
• MTK T750 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 cost-effective WiFi tablets with good performance for entertainment
and enterprise applications.
• New tablets with in-cell display and wireless charging function.
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• Developed and mass-produced a new generation of waterproof e-Reader with wireless charging
function.
■ Smart Wearable Devices
• 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
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.
• Bluetooth hearing aids with TAIWAN FDA have been developed and are in mass production.
■ Smart Display Products
• Developing a latest video streaming platform.
■ 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 with AI technologies and launched to
market.
■ 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;
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meanwhile, kept promoting products to the industry.
• Forklift AMR started evaluating, and some potential customers are waiting for test, the shipping
schedule is set in 2H 2023.
■ Smart Medical and Healthcare
• Smart sports
Compal's smart exercise mat, Stampede, won the 2023 Taiwan Excellence Award and was selected as a
representative sports product for 2022. It will be extended to national sports centers and expanded to
the hotel and construction industries to promote smart exercise solutions.
• 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
addition to this, several prominent nursing centers in China have also shown interest and commenced
collaborating in the use of this solution.
•
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.
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6.1.4 Long-term and Short-term Development
1. Short-term Development
• We will adapt to market changes, respond epidemic situation, strengthen innovative 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
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.
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• 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
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. 2022 Sales (Service) by Regions
Sales Regions
Americas
Europe
Asia (Including Taiwan)
Other Area
Total
2. Market Share
■ Notebooks
Percentage
47.2%
22.9%
27.2%
2.7%
100.0%
According to IDC statistics, the global notebook shipments reached 211.88 million units in 2022. Compal accounts
for about 20% of the global notebook market and is still the world's leading product manufacturer. 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, 5G O-RAN solutions, 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, 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.
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■ Smart Wearable Devices
Compal is the biggest ODM supplier 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
Our company has successfully mass-produced high-resolution smart voice interactive TVs, which have gained over
8% market share in the North American market. We have also received high-quality reviews from consumers,
averaging over 4.5 stars, and have successfully secured cooperation plans with existing customers. We plan to
continue our momentum in shipping products and actively expand our product lines to maintain stable growth in
the future.
■ 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, due to slowing demand and macroeconomic instability, global notebook shipments fell
by nearly 19% in 2022. Looking ahead to 2023, economic headwinds and channel inventory issues will continue to
affect the shipments at the beginning of the year. However, due to the launch of new-generation processors and
graphics cards, and the expected recovery of the economic situation in the second half of the year, shipments will
increase quarter by quarter.
■ Ultraslim Notebooks
According to IDC statistics, global shipments of ultraslim notebook (<18mm thickness) has reached 71.65 million
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units in 2022, accounting for more than 33.8% of the global notebook market. In 2023, it is estimated that more
ultraslim notebooks will be launched under the competition between x86 and ARM architecture processors.
■ 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 data,
global gaming notebook shipments will reach 27.25 million units in 2022, accounting for about 12.8% of global
notebook shipments. In 2023, Nvidia and AMD launch new graphics cards with improved performance, which will
lead the replacement demand for gaming notebooks.
■ 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 shows the global shipments of 2-in-1 notebook has reached 99.17 million units in 2022. It is estimated
that in 2023, brand manufacturers will launch more diversified products and continue to integrate new applications
such as 5G and AI, which will make the application of 2-in-1 notebooks wider and bring more business
opportunities.
■ All-in-one (AIO)
According to IDC statistics, the global AIO shipments in 2022 will be 10.58 million units, and it is expected to remain
flat in 2023. 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
In 2022, global shipments of tablet computers slightly declined due to the ongoing Ukraine-Russia war, global
inflation, and interest rate impact. Looking ahead to the next five years, many countries are expected to adopt
interest rate policies to suppress inflation, but it will ultimately weaken economic growth, resulting in tightened
consumer spending and business budget cut, which is a negative impact for the already matured tablet market.
Despite the continued declining trend of the market, the shipment of detachable tablets will surpass slate tables
in the next 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, the 2023 Global smartphone shipment is estimated to be 11.9 billion with 1.1% YoY decline
which will bounce back in 2024. In the first half of 2023, shipments in most regions will have a double-digit decline.
In the third quarter, there is a chance of growth, and in the fourth quarter, there is a chance for double-digit growth.
Compal is also investing in cost-effective models with 5G communication with existing 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 market research companies, the global LCD TV market is expected to remain flat or decline slightly
in 2023, due to factors such as inflation, weak demand, and panel production reductions. In the post-pandemic
era, the market for smart display products is expected to continue developing audio and video specifications while
also growing and developing in the direction of technologies such as antibacterial and environmentally sustainable.
■ AR/VR Smart Devices
According to IDC estimation, the annual average growth rate (CAGR) 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.
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■ Smart Home Devices
The main driving force to the smart home market lies in the demand for smart lighting, entertainment, automation
and security. In recent years, advanced technologies such as AI, machine learning, and voice recognition have also
become key drivers to the market growth. According to the latest report from Grand View Research, the smart
home automation market is expected to reach $444.98 billion by 2030, representing 27.3% CAGR from 2023 to
2030. Economic impact factors in 2023 may slow down, and it is estimated that smart speaker shipments will
rebound to 158 million units with an annual growth rate of 5.3%. With the continuous development of smart home
technology, the market has the potential to expand further. AI, touchless, ambient sensing, and smart health
technologies will all become major market drivers. With the implementation of Matter, Compal will also actively
seize future demand with our AI, gesture control, ambient sensing, and smart health technologies.
■ IoT Vertical Solutions
According to a survey report by Gartner, Q4 2022, smart device shipments are expected to reach 1.9 billion units
in 2023, increase of 15.5% over 2022, and the market value will reach US$ 519.5 billion. Moreover, Gartner
expected the demand to grow to 2.3 billion units and market value of US$661.3 billon by 2025, which shows that
the market demand is still climbing.
■ Smart Medical and Healthcare
(1) Instruments, Equipment, and Accessories:
• Smart sports products: Estimates of Market Reports Hub show that the value of smart sports goods have
increased to USD 15 billion in 2021, with professional athletes, professional teams, amateur athletes, and
highly self-demanding trainers as the major consumer groups.
• According to a report by Mordor Intelligence, the global medical equipment market was valued at
approximately $456 billion in 2021 and is projected to reach $614 billion by 2026, with a CAGR of 6.1%.
•
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%.
(2) 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%.
■ Automotive electronics (AE)
IHS estimates global light vehicle production in 2023 will reach 88.5 million units, up 7.8% YoY from 81.6 million in
2022.
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■ Server
IDC statistics show that the demand for x86 servers was 16.76 million pieces in 2022 and will reach 17.18 million
pieces in 2023. 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 90.65% of the shipping volume.
As the frame-type server has a higher market share, we have actively engaged in the server market.
4. Competitive advantage:
Compal has the long-time investment in Information and Communication Technology (ICT) industry and has
committed to its role as an ODM. The following is a description of our competitive advantages in terms of R&D
and mass production capacity:
■ Notebooks
The Company has been manufacturing notebooks since 1989 and is one of the most experienced notebook
manufacturers 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 2023, Compal will maintain this advantage actively assist customers in the
development of more competitive Ultraslim notebooks with x86 and ARM platform.
■ Gaming Notebooks
Compal is consistently dedicated to the gaming notebook market with the best hardware and software design. We
will keep focusing on the design of new-generation gaming notebooks to meet various gamers in 2023.
■ 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.
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■ All-in-one (AIO)
Compal possesses the advantage and ability to commercialize products quickly in this respect. To further
emphasize product differentiation, a resolute software development team has been assembled to carry out
software development and man-machine interface integration, to make the products more suitable for consumer
needs.
■ 5G Module, 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, and also the carrier
certification by request etc.
■ 5G Small Cell and 5G O-RAN Private Network solution
Compal 5G small cell series has comprehensive antenna solutions, 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. 5G ISC(Integrated small cells), O-
RU and DU inline accelerator have equipped with the ARM processor to address low energy consumption, and
lower the total cost of ownership (TCO) by delivering high-performance and energy-efficient 5G solution. With
Compal's 5G RAN solution and application technology can help our customers to create 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.
■ 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
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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 actively adjust the allocation of resources between production bases and supply chains, continuously cultivate
strategic partnerships with customers and suppliers, develop the latest streaming video platforms, and integrate
cross-disciplinary materials such as antibacterial and environmental protection to meet the trend of sustainable
environmental management. This will help us to raise the competitive threshold and create a win-win situation to
compete 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
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
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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
•
In response to the needs of geopolitics and regional markets, coupled with the rising awareness of
environmental protection and sustainability, the notebook industry has also begun to move towards a
regionalized supply chain. Compal has successively established manufacturing and maintenance service bases
in Taiwan, China, the United States, Vietnam, Brazil, Poland, etc., which can quickly respond to customer needs
and changes in geopolitics.
• Microsoft is expected to end support services for the Windows 10 operating system in 2025, which is expected
to gradually drive the demand for computer replacements. 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.
• 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.
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• 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.
• With the flourishing growth of global 5G communication, Compal collaborate and integrate 5G communication
capabilities with internal and external corporate partners, and launch a variety of 5G 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 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
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.
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• 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.
• The conditions of the US-China trade war, globalization, rapid technological development and fast-changing
industries, increased investments in Taiwan from abroad as well as the demands 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 ultraslim notebooks integrating high performance and portability in response to the machine
renewal demand in the commercial market to seize the commercial market together with customers.
• The gaming market has grown in diversity with new technologies constantly being introduced to entice
consumers into replacing old products. Compal is in the position to offer gaming notebooks at various price
levels to meet consumer demand.
• We will offer complete solutions and form alliances across industries to quickly tap into market demand while
retaining the flexibility to satisfy customer needs.
• We will nurture innovative talent within the organization, enhance the development capacity for high-end
medical equipment and engage world-renowned medical equipment suppliers in strategic, long-term, and
mutually beneficial cooperation.
• We will continue to strengthen working relationships with platform operators by providing hardware and
software solutions.
• We will continue to extend our 5G communication capabilities to various 5G domains and types of products,
build up leadership in 5G, and provide complete total solutions.
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• 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 top acoustic research centers in Taiwan.
• 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 notebook 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,
a range of software applications and high computing power.
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■ 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.
■ 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
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Casing of logic board Preparation of LCD display Assembly Preparation of main board Preparation of keyboard Fasten LED board Inspect LCD panel Input inspection Input inspection Prepare plunger + frame Fasten power switch board Fasten interface board to lower casing Fasten motherboard to frame Parts processing Install frame onto metal board Produce LED frame Fix LCD panel to lower casing Prepare battery spring SMT (surface mount technology) Apply double-sided tape Apply hook to casing Prepare battery wire Insert add-ons Insert keys Combine upper & lower casing Prepare disk drives Visual inspection Press keys and check Assemble LCD casing & logic board upper casing Fasten disk drives+motherboard to bottom casing Soldering furnace Production process inspection Fasten power board to motherboard Remove board Install PCB to lower casing Production process inspection Trip conductor Install wires to lower casing & fasten Fasten LCD casing & bottom casing Machine wash Assemble upper casing Battery assembly Apply heat sink Prepare name plate Keyboard installation Secondary soldering Process quality inspection Function test Brush clean Accelerated aging test Visual observation Function test Repair Prepare name plate & paste onto unit Process quality inspection Wipe down unit Automated machine testing Exterior inspection Accelerated aging test Unit packaging Automated machine testing QA testing
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 overall demand of notebooks began to show a sign of weakening in 2022 Q1 due to the influence
of geopolitical issues and the epidemic. Consumer spending remains decline due to inflation, and result
of the global economy continuing to slow down. With a poor economic environment and tightening
budget, it is expected the overall notebook demand remains weak in 2023 H1 and might slightly
recover in 2023 H2.
The majority of the NB CPU market is still controlled by Intel, which accounting for more than 68%.
AMD account for 18%. However, ARM-based CPU continues to gain market share from X86 CPU. Apple
CPU has shown resilience in the weak NB market with the penetration continues to grow and reach
12% in 2022. In addition, both Qualcomm and MediaTek planned to release ARM based NB solution in
2024. Overall, it is estimated that ARM will account for more than 21% of NB market in 2025.
In term of new products, Intel has released 10nm Raptor Lake in 2022 Q4 and expected to launch 7nm
Meteor Lake equip with TSMC 5nm process GPU in 2023 Q4. Intel 20A (2nm) process technology Arrow
Lake is estimated to launch in 2025 Q1. Regarding to the low-end CPU, Intel has launched Alder Lake
N in 2023 Q1. AMD 6nm low-end Mendocino has released in 2022 Q3 and expected to launch high-
end 4nm Phoenix in 2023 Q1.
●
Smartphones and Modules
The outlook for the mobile phone market in 2023 is not clear, especially for non-flagship phones,
which saw the biggest decline in sales momentum last year. It seems that the scale of demand cannot
be recovered in the short term, and the degree of inventory depletion will be affected. The global
sales penetration rate of 5G smartphones is expected to exceed 60% in 2023, and the global
economic weakness continues to impact consumer confidence, and the market's view on the growth
of global mobile phone shipments in 2023 is conservative. The sales performance of low-to-mid-
range models this year will depend on the growth of mobile phone consumption in India and
Southeast Asia, as well as the recovery of the China market.
As related technologies gradually mature, cross-industry cooperation deepens, and emerging markets
begin to introduce 5G, its impact will become more obvious in 2023. There is about 31% of the global
telecom operators will provide 5G services, showing strong growth momentum from 2022. It would
reach 17.11 billion US dollars by 2026, with a compound annual growth rate (CAGR) 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.
173
■ Memory
●
DRAM
Due to Covid-19, global inflation and international tensions, the demand of notebooks, mobile phones
and servers is weak. The DRAM major manufacturers (Samsung, SK Hynix, and Micron) declined in
shipments and stockpiled inventory. DRAM price had entered a price decline cycle since 2022 Q1, and
market demand had not improved in 2022 Q3, the peak shipment season. Difficulty in destocking and
a vague demand outlook had led DRAM manufacturers to announce the cut in production and capital
expenditures in 2022 Q4. In 2022, the overall DRAM was oversupplied, the inventory level was high,
and the price dropped. Even if the price had fallen by more than 50%, it’s still not be able to stimulate
demand. The price of new-generation DDR5 has plummeted after mass production began in 2022 Q4,
and the premium compared to DDR4 had narrowed, and it is expected to accelerate market
penetration in 2023 H2.
For DRAM application, the global overall supply is calculated in units of 2Gbs. The actual shipment in
2022 is 104.7 Billion units, and it is estimated to be 111 Billion units in 2023, with a compound annual
growth rate of about 6%. In terms of the overall proportion, it is estimated that Mobile will drop to
36.8%, Server will increase to 37.5%, PC will be revised down to 12.2%, Consumer will account for
about 8.3%, and Graphic will account for about 5.2%.
■ NAND flash
In 2022, intensified inflation, rising interest rates and global economic growth downturn resulted in a decline
of consumer purchasing power and a shift towards conservative corporate capital expenditures. This, in turn,
caused an oversupply in the NAND Flash market. The severe supply-demand imbalance led to a peak in
suppliers’ inventory, while NAND Flash prices continued to decline. Based on the uncertainty of future demand,
NAND Flash manufacturers had to reduce NAND Flash output, lower investment and slow down technology
migration in response. It is estimated that the supply bit growth rate for 2023 will significantly decrease to
17.2% (compared to 31.8% YoY last year and 40% YoY the year before last). Due to the manufacturers'
aggressive production reduction, the downward cycle of NAND Flash prices will end earlier than expected, and
it is predicted that price won’t continue to decline in the second half of 2023.
3D NAND Flash process node will keep moving to higher stacking processes. In the second half of 2022, three
suppliers announced the completion of development or mass production of NAND Flash with more than 200
layers, including Micron's 232-layer NAND Flash in Q3, Samsung's 236-layer NAND Flash in Q4 and SK Hynix's
238-layer NAND Flash is expected to mass product in 2023. Due to suppliers having scaled back their capital
expenditure, the pace of migration of higher stacking processes will be slowed. The mainstream production
process of NAND Flash will keep at 112/128/144 layers. Despite 176-layer products now being mainstream in
Micron’s shipments, Samsung and SK Hynix will also proceed with 176-layer migration for consumer storage
solutions during 2023; the share of 176-layer products will be significant increase by 2023 Q4.
■ HDD
The overall HDD shipments are still dominated by large-capacity enterprise hard drives. However, due to the
174
tightening demand for enterprise cloud storage business and inventory adjustments, the sales of HDDs
dropped to 35.2 million units (YoY -42.5%) in 2022. In terms of market share among HDD suppliers, Seagate is
about 43%, Western Digital is about 35%, and Toshiba is 22%.
In NB market, the impact of SSD on the HDD market has intensified in 2023. As SSD prices continue to decrease,
price advantage of HDD has diminished. HDD is inferior to SSD in terms of performance, size, and power
consumption. Meanwhile, lightweight NBs become mainstream and the cloud storage technology advances.
For reasons mentioned above, it is estimated that the HDD attach rate will drop from 8% to 4% in 2023 as NBs
are mainly equipped with SSDs.
■ Batteries
Some notebook battery materials, such as lithium and cobalt, are also used in electric vehicle power batteries.
Since 2021, the price of lithium and cobalt has risen due to the increasing demand for EVs, which has also
affected the price of notebook batteries. However, due to the high cost of cobalt, EV manufacturers are
gradually switching from using ternary (Ni-Co-Mn or Ni-Co-Al) batteries to lithium iron phosphate (LFP)
batteries to avoid the use of high-priced cobalt materials. It is estimated that in 2024, the ratio of LFP and
ternary batteries installed will shift to 6:4, causing the cobalt price to decline starting in 2022 Q2 and return to
pre-pandemic levels in 2023 Q1, also affecting the price of notebook batteries to decline.
The major notebook battery cell suppliers are from China, South Korea, and Japan. Chinese companies such as
ATL, BYD, CosMx, and Lishen are dominant in the market, while Korean companies such as Samsung SDI and
LGES account for a significant portion. Japanese manufacturers, mainly Panasonic, are also present. However,
as Japanese and Korean battery cell factories gradually withdraw from the consumer electronics market,
Chinese battery cell factories currently account for more than 70% of the total shipment volume for notebook
battery cells.
■
LCD modules
In 2022, the global economy continued to deteriorate, and terminal demand reversed rapidly, causing global
notebook panel shipments to decline quarter by quarter, with a total of only about 186 million panels shipped
for the year, a YoY decrease of 24.5%.
Restricted by the slowing market demand and the overall high inventory levels in the supply chain, the
traditional peak season momentum in Q4 failed to materialize, and even with brands offering promotional
prices in North America and China, sales performance fell short of expectations. In October 2022, global
notebook panel shipments were only 13.5 million units, a MoM decrease of 16.1% and a YoY decrease of 45%,
reaching the lowest level for the same period in the past 12 years. It is expected that the destocking of terminal
inventory will be extended to 2023 Q2.
14-inch and 15.6-inch panels remained the mainstream in 2022, with a market share of about 70%. With the
trend towards larger panel sizes, 16-inch 16:10 notebook panels gradually gained market share from 15.6-inch
16:9 panels. The global market share of 16:10 notebook panels reached 26.4%, with Apple accounting for
12.4% and other brands accounting for 14%. The reasons are that 16:10 is closer to the golden ratio than 16:9,
and with the higher cutting efficiency of Gen 8.5 and 8.6, brands are actively adopting 16:10 models.
175
OLED panel shipment hit about 6 million record high in 2022, a YoY increase of 19%. Samsung withdrew the
LCD production and keep leading OLED market. For OLED, there are more suppliers join the market, Samsung,
LGD, BOE, Sharp and CSOT. It can be foreseen that OLED will take an important position in high end notebook.
176
5.2.4 Major Suppliers and Clients
1. Major Suppliers in the Last Two Calendar Year
2021
2022
2023 first quarter
Unit: TWD Thousands
Party
Name
Amount
As a
percentage
to 2021 net
purchases
(%)
Relationship
with the
issuer
Name
Amount
As a
percentage
to 2022 net
purchases
(%)
Relationship
with the
issuer
Name
Amount
As a
percentage
to 2023 first
quarter net
purchases
(%)
Relationship
with the issuer
1
Company E
Others
Net Purchase
416,094,822
753,445,011
1,169,539,833
35.58
64.42
100.00
N.A.
Company E
Others
Net Purchase
330,815,052
637,179,606
967,994,658
34.18
65.82
100.00
N.A.
Company E
Others
72,046,227
133,599,268
Net Purchase 205,645,495
35.03
64.97
100.00
N.A.
• Causes of changes: No significant change to the major suppliers reported in the last two years.
2. Major Clients in the Last Two Calendar Years
2021
2022
Party
Name
Amount
As a
percentage
to 2021 net
sales (%)
Relationship
with the
issuer
Name
Amount
As a
percentage
to 2022 net
sales (%)
Relationship
with the issuer
Name
1
2
3
4
Company a
144,069,158
11.66
Company d
534,800,186
43.28
Company e
116,116,250
9.40
Company f
223,256,380
18.07
N.A.
N.A.
N.A.
N.A.
Others
217,440,041
17.59
Net sales
1,235,682,015
100.00
Company a
Company d
Company e
Company f
Others
Net sales
96,621,806
9.00
460,236,878
42.88
102,969,721
9.59
170,398,727
15.88
243,018,783
22.65
N.A.
N.A.
N.A.
N.A.
Company a
17,820,434
Company d
89,062,864
Company e
19,639,205
Company f
37,566,741
Others
45,369,540
42.52
9.38
17.94
21.65
1,073,245,915 100.00
Net sales
209,458,784
100.00
• Causes of changes: The decrease in sales to Customer a and Customer f in the year of 2022 is mainly due to the decrease in shipments of the corresponding products which was caused by
the impact of customer demand.
177
Amount
2023 first quarter
As a
percentage
to 2023 first
quarter net
sales (%)
8.51
Unit: TWD Thousands
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
2021
2022
Unit: 000 Units; TWD Thousands
Production
capacity
Production
volume
Production
value
Production
capacity
Production
volume
Production value
5C electronics
162,729
138,126
1,183,285,569
152,068
112,581
1,039,628,777
5.2.6 Shipments and Sales in the Last Two Years
Year
Sales volume
Main products
2021
2022
Domestic sales
Value
Volume
Export sales
Volume
Value
Domestic sales
Value
Volume
Export sales
Volume
Value
5C electronics
1,139
5,067,681
136,980 1,230,614,334
1,100
3,047,804
110,122
1,070,198,111
Unit: 000 Units; TWD Thousands
5.3
Human Resources
Year
December 31, 2021
December 31, 2022
May 8, 2023
Number of employees
109,709
73,120
Average age
Average years of service
Academic
qualifications
Doctoral Degree
Master’s degree
University
High school/Below/others
28.08
1.69
0.04%
3.34%
16.29%
80.33%
29.12
2.85
0.07%
5.05%
23.93%
70.95%
69,483
29.79
3.19
0.06%
5.48%
24.11%
70.35%
178
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 low energy consumption, low water
consumption and low pollution industry. In order to protect the environment, it fulfills its social
responsibilities, saves energy and reduces carbon, to help reduce the impact of global warming. The Taiwan
and Mainland China plants together incurred expenses of TWD 42,993,941 (excluding regular maintenance
and green R&D) in 2022. We are keeping the promises we made as Earth citizens and hope to make
substantial contributions to the protection of the global environment. We will continue our commitment to
efforts in this respect. In 2022, 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,
179
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 2022, the Company had provided TWD 210.93 million in maternity allowances and bonuses.
There were 74 counts of employees who took parenting leave, with the right to return to work, in 2022.
■
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 2022, 763 training sessions (both internal and external) were organized; these courses delivered 718,685
hours of training and 190,216 persons enrolled. The total training expenses were TWD 26,281,000. 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
180
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 2022 and as of the date of report published, the Company did not suffer any losses due to
employment disputes: None
‧ Future plans and potential expenses: None
181
5.6
Information Security Management
1.
Information security risk management framework
The Information Security Committee coordinates and executes Compal's information security related
operations and various activities. It has one chairman and one deputy chairman. According to management
needs, several members may form the committee, with the head of the department and above as ex-officio
members. An executive secretary is 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 related matters. One person is appointed as the
head of the Information Security Implementation Team and reports to the Board of Directors once a year.
When necessary, the Capital Committee may invite external information security consultants to 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 the ISMS, and maintain operational
information security and compliance with national laws and regulatory requirements for information
security control. It defines the scope of the ISMS, implements risk assessment and risk management tasks,
determines acceptable risk levels, discusses the duties and responsibilities in information security related
operations, and coordinates information security control measures and processing procedures. It advocates
for information security policies and other information security management matters, and promotes
information security awareness. Regular information security team meetings have been held to discuss and
implement 21 information security strategy topics in 2022 in response to the ever-changing information
security issues.
2.
Information security strategy management and resources
Compal established the “Information Security Policy” to be the highest guiding principle, as declared in the
information security statement, "to ensure business continuity and to improve customer satisfaction."
˙ Performing information asset risk assessment;
˙ Maintaining the confidentiality, integrity and availability of critical information assets;
˙ Continuously improving ISMS by implementing Plan-Do-Check-Act (PDCA) management cycle;
˙ Fulfilling the contractual agreements with clients and protecting clients’ information security;
˙ Complying with relevant laws and regulatory requirements; and
˙ Ensuring the participation of all personnel and suppliers.
3.
Information security specific management plan
˙ The six major information security goals are measured monthly to monitor the control measures of
information security management.
˙ Critical systems recovery and backup & restore drills are executed regularly to ensure the validity of the
Business Continuity Plan and that it meets the system recovery goals.
˙ Conduct information security incident notification, response and handling exercises regularly.
˙ To boost employees’ awareness of information security, our employees are required to receive social
engineering exercises and a briefing on information security and training.
˙ Conduct the penetration test regularly to improve the security defenses.
182
˙ Vulnerability scanning and tracking is performed regularly to ensure that vulnerability fixes are effectively
addressed.
˙ Regular internal and external audits and continuous improvement.
˙ 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.
4.
Information security management resources
■ ISO27001 Information security management and audit mechanism
In 2005, Compal passed the ISO 27001 information security verification, and obtained the Information
Security Management System ISO 27001 certificate issued by BSI. It gradually expanded its scope of
verification, which is tracked twice a year and re-audited every three years. The scope of verification covers
R&D activities of Portable Computer, All-in-One PC, Automotive Electronic Product, Enterprise Product,
Mobile Device Product, IT Group, Smart Device Business Group-IT Division, and IT division in four plant
compounds at Kunshan. Five members of the information security team have obtained ISO27001:2013 lead
auditor license, and one member has a CISSP license, in addition to facing customers and impartial third-
party audits, they also conduct internal audits to ensure the implementation of information security
management mechanisms.
■ Strengthened network security
Compal continues to strengthen control requirements for information security, reinforces the 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 the identity authentication mechanism for the
Company account, and introduced two-factor authentication to enhance the security of remote login for
internal resources to prevent illegal users from accessing company resources or customer information.
Deploy MDR threat detection, anomaly analysis, and incident response to prevent information security
threats. Access to critical information is controlled by account permissions, and the login password is
changed regularly in accordance with the company's password policy. Through announcements and
quarterly advocacy to enhance employee awareness for information security, persistently review the
network security planning of the Company, and implement all equipment connected to the Company
network in compliance with regulations and protocols. Compal maintained a score of more than 90 points
within Security Scorecard of the third-party security assessment in 2022.
■ Strengthened employees' awareness of information security
Compal provides eLearning courses and quarterly social engineering drills to simulate hackers' phishing
emails, detect employees' information security risk awareness, supplemented by daily boot up with pop-up
information security announcements and quarterly information security guidance by email and also
education training to enhance colleagues' information security awareness. In order to implement the
concept of information security, new employees complete the information security-training program and all
employees are also required to complete information security retraining courses every year. The
information security education and training shall include Compal’s information security management
regulations. Upon completion of the training, personnel should evaluate the validity of the training and log
the evaluation. Information security members participate in the information security intelligence and
technology seminar to learn about the latest information security trends and intelligence.
183
5.
Losses, possible impacts and responses of major information security incidents
The widespread use of computers and rapid development of internet have greatly changed the way users
store and share information. With the efforts of all colleagues, Compal did not receive any complaints about
a violation of customer privacy or the loss of customer information in 2022. In response to the
government's "Cyber Security Guidelines for TWSE/TPEx-Listed Companies", Compal applied to become a
member of Taiwan Computer Emergency Response Team / Coordination Center (TWCERT/CC) in 2022 to
improve the notification and response of cyber security incident.
Major Contents
Restrictions
5.7 Important Contracts
Agreement
Counterpart
y
Patent
Phoenix
licensing
Technologie
agreement
s Ltd.
Period
Since
2010.1.1
Auto-renewed
upon expiry
1. Tool Licenses
2. Source Code licenses
3. Maintenance
None
None
Trading and
manufacturing
agreement
Under this agreement, the buyer will procure
Since
computer
products
developed
and
Dell
1997.06.26
manufactured by the seller, while the seller
Products L.P.
Auto-renewed
will grant the buyer proper licenses to use
upon expiry
the products and provide after-sales
Trading and
manufacturing
Acer Inc.
agreement
Since 2001.10.01
Yearly
Auto-renewed
upon expiry
technical services.
Under this agreement, the buyer will procure
computer
products
developed
and
manufactured by the seller, along with after-
None
sales technical services provided by the
seller.
184
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,
2023
Analysis
2018
2019
2020
2021
2022
Current assets
362,745,250
343,154,813
424,460,635
487,115,390
390,706,503
385,109,396
Property, plant, and
equipment
20,418,228
19,972,347
22,085,340
26,990,364
28,808,211
29,002,188
Intangible assets
1,516,253
1,553,342
1,506,101
1,548,508
15,115,092
17,967,917
18,873,622
21,441,078
1,722,165
32,247,554
1,693,485
31,895,967
Other assets
Total assets
Prior to
Current
distribution
liabilities
After
distribution
399,794,823
382,648,419
466,925,698
537,095,340
453,484,433
447,701,036
274,207,898
255,820,033
335,524,716
402,242,095
302,384,911
301,742,397
279,436,453
261,048,588
342,496,124
410,956,354
307,613,466
(Note 2)
-
Non-current assets
12,425,077
12,069,042
15,411,332
13,313,442
23,689,679
23,744,596
Prior to
distribution
Total liabilities
After
distribution
Equity attributable to
parent company
shareholders
Ordinary shares
Capital reserves
Retained
earnings
Prior to
distribution
After
distribution
286,632,975
267,889,075
415,555,537
412,506,626
326,074,590
325,486,993
291,861,530
273,117,630
357,907,456
424,269,796
331,303,145
(Note 2)
-
105,723,646
105,972,633
106,832,505
111,360,265
116,294,754
111,782,767
44,071,466
44,071,466
44,071,466
44,071,466
9,932,434
9,159,259
8,342,813
6,724,856
44,071,466
5,078,580
44,071,466
4,258,803
60,060,381
57,726,604
62,566,181
69,651,940
69,969,059
66,955,034
55,653,234
53,319,457
57,277,605
62,600,505
65,561,912
(Note 2)
-
Other equity interests
(7,459,388)
(4,103,449)
(7,266,708)
(8,206,750)
(1,943,104)
(2,621,289)
Treasury stock
(881,247)
(881,247)
(881,247)
(881,247)
Non-controlling interests
7,438,202
8,786,711
9,157,145
10,179,538
(881,247)
11,115,089
(881,247)
10,431,276
Total equity Prior to
distribution
After
distribution
113,161,848
114,759,344
115,989,650
121,539,803
127,409,843
122,214,043
107,933,293
109,530,789
109,018,242
112,825,544
122,181,288
(Note 2)
-
Note: 1. The financial information is audited and certified by the CPA every year. The financial information as of March 31, 2023, has been
reviewed by the CPA.
2. The amounts are approved by the Board of Directors meeting on March 15, 2023
185
▓ Consolidated Condensed Statement of Comprehensive Income
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March 31,
2023
Analysis
2018
2019
2020
2021
2022
Net sales revenue
967,706,411
980,442,346
1,048,929,251
1,235,682,015
1,073,245,915
209,458,784
Gross profit
30,567,091
33,908,828
35,458,522
41,491,574
40,364,179
Net operating income
9,261,746
10,586,368
11,492,545
13,348,593
Non-operating income and
expense
2,527,839
(578,492)
1,630,171
4,119,242
9,218,997
1,505,133
9,338,737
2,254,027
(43,003)
Net income before taxes
11,789,585
10,007,876
13,122,716
17,467,835
10,724,130
2,211,024
Net income from continuing
operations
Net loss from discounting
operations
9,589,301
7,895,719
10,409,512
13,740,488
8,541,527
1,684,722
-
-
-
-
-
-
Net income (loss)
9,589,301
7,895,719
10,409,512
13,740,488
8,541,527
1,684,722
Income (Loss) from Other
comprehensive income (loss)
387,887
(1,534,980)
(3,341,346)
(1,237,908)
6,535,651
(674,275)
(net after tax)
Comprehensive income
9,977,188
6,360,739
7,068,166
12,502,580
15,077,178
1,010,447
Net income attributes to
shareholders of the Parent
Net income attributes to non-
controlling interests
Comprehensive income
attributed to owners of parent
Comprehensive income
8,913,365
6,955,899
9,361,893
12,632,667
7,288,292
1,393,250
675,936
939,820
1,047,619
1,107,821
1,253,235
291,472
9,278,187
5,456,508
6,083,542
11,445,530
13,636,212
718,835
attributed to non-controlling
699,001
904,231
984,624
1,057,050
1,440,966
291,612
interests
Earnings per share
(unit: dollar)
2.05
1.60
2,15
2.90
1.67
0.32
Note: 1. The financial information is audited and certified by the CPA every year. The financial information as of March 31, 2023 has been
reviewed by the CPA.
186
▓ Parent-Company-Only Condensed Balance Sheet
Year
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
As of March
31, 2023
Analysis
2018
2019
2020
2021
2022
Current assets
265,372,906
245,522,829
296,383,073
348,914,103
271,829,340
Property, plant, and equipment
2,128,181
2,620,638
2,604,893
2,484,963
Intangible assets
378,745
438,334
436,548
431,936
Other assets
Total assets
Current
liabilities
Prior to
distribution
After
distribution
87,932,981
89,201,687
89,526,637
95,517,212
355,812,813
337,783,488
388,951,151
447,348,214
237,882,742
220,871,943
268,466,052
324,236,031
248,511,419
243,171,318
226,160,519
275,517,487
333,050,325
2,417,309
529,906
104,756,856
379,533,411
253,799,995
(Note 2)
14,727,238
Non-current assets
12,206,425
10,938,912
13,652,594
11,751,918
Total liabilities
Ordinary shares
Capital reserves
Retained
earnings
Prior to
distribution
After
distribution
Prior to
distribution
After
distribution
250,089,167
231,810,855
282,118,646
335,987,949
263,238,657
255,377,743
237,099,431
289,170,081
344,802,243
44,071,466
44,071,466
44,071,466
44,071,466
9,932,434
9,159,259
8,342,813
6,724,856
268,527,233
N.A.
(Note 2)
44,071,466
5,078,580
60,060,381
57,726,604
62,566,181
69,651,940
69,969,059
55,653,234
53,319,457
57,277,605
62,600,505
65,561,912
(Note 2)
Other equity interests
(7,459,388)
(4,103,449)
(7,266,708)
(8,206,750)
(1,943,104)
Treasury stock
(881,247)
(881,247)
(881,247)
(881,247)
(881,247)
Total equity
Prior to
distribution
After
distribution
105,723,646
105,972,633
106,832,505
111,360,265
116,294,754
100,495,091
100,744,078
99,861,097
102,646,006
111,066,199
(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, 2023.
187
▓ 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, 2023
2018
2019
2020
2021
2022
Net sales revenue
911,050,122
916,280,028
991,279,270
1,171,613,858 1,003,642,791
Gross profit
21,880,841
24,849,149
23,218,044
27,904,355
28,567,835
Net operating income
6,936,706
8,536,952
6,079,726
7,578,392
7,262,023
Non-operating income and
expense
3,021,610
(713,273)
4,347,551
6,864,576
771,589
Net income before taxes
9,958,316
7,823,679
10,427,277
14,442,968
8,033,612
Net income from
continuing operations
Net loss from discounting
operations
8,913,365
6,955,899
9,361,893
12,632,667
7,288,292
-
-
-
-
-
N.A.
Net income (loss)
8,913,365
6,955,899
9,361,893
12,632,667
7,288,292
Income (loss) from other
comprehensive income
364,822
(1,499,391)
(3,278,351)
(1,187,137)
6,347,920
(net after tax)
Comprehensive income
9,278,187
5,456,508
6,083,542
11,445,530
13,636,212
Earnings per share
(unit: dollar)
2.05
1.60
2.15
2.90
1.67
Note: 1.The financial information is audited and certified by the CPA every year.
▓ Auditors’ Opinions
Year
2018
2019
2020
2021
2022
Accounting Firm
CPA
KPMG
KPMG
KPMG
KPMG
KPMG
Chien, Szu Chuan; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Kuo, Kuan Ying ; Chien, Szu Chuan
Kuo, Kuan Ying ; Chien, Szu Chuan
Audit Opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
188
6.2 Five-Year Financial Analysis
▓
Consolidated Financial Analysis
Year
Analysis
Financial Analysis for the Last Five Years
As of
March 31,
2023
Debt ratio
71.70
70.01
75.16
77.37
71.90
72.70
2018
2019
2020
2021
2022
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 (%)
615.07
635.02
594.97
499.63
524.50
503.27
132.29
103.06
5.47
5.08
71.85
12.61
6.33
28.95
134.14
126.51
121.10
129.21 127.63
102.94
97.39
4.67
4.96
73.58
12.01
6.34
12.42
4.95
73.73
11.61
5.89
92.13
17.65
4.73
77.16
11.31
5.64
91.61
88.19
4.30
4.46
2.93
4.59
81.83
79.52
9.12
5.35
6.97
5.01
30.39
31.43
32.27
40.02
52.37
50.14
48.55
49.88
50.36
38.47
28.99
2.54
3.08
8.65
2.51
2.57
6.93
2.47
2.67
9.02
2.46
2.90
11.57
39.64
1.11
2.90
0.99
2.15
4.25
(Note1)
35.94
27.41
5.48
1.54
1.11
(Note1)
1.52
1.09
2.17
2.25
6.86
24.33
0.80
1.67
19.39
81.74
27.65
1.82
1.54
1.86
0.57
1.35
5.02
0.80
0.32
-
-
-
-
-
Profitability Analysis
Operating income to paid-in capital ratio (%)
26.75
22.71
29.78
Net margin (%)
Earnings per share (dollar)
Cash flow ratio (%)
Cash flow
Cash flow adequacy ratio (%)
Cash reinvestment ratio (%)
Leverage
Operating leverage
Financial leverage
Note: 1. The ratio is negative.
0.99
2.05
(Note1)
44.84
(Not1)
1.60
1.40
0.81
1.60
8.18
37.92
9.89
1.61
1.35
Interest coverage: Mainly due to the increase in interest expense and decrease in profit.
2. The financial ratio has changed by up to 20% in the past two years:
‧
‧ Average inventory turnover days: Mainly due to the decrease in inventory turnover.
‧
‧
Property, plant and equipment turnover (times): Mainly due to decrease in net sale.
Return on total asset, Return on equity, Operating income to paid-in capital ratio, Net margin, Earnings per share : Mainly due
to decrease in profit.
Cash flow ratio: Mainly due to net cash inflow from operation.
Cash Flow Adequacy Ratio: Mainly due to the increase in net cash inflow from operation compared to the earlier period.
Cash reinvestment ratio: Mainly due to the increase in net cash inflow from operation compared to the earlier period.
Financial leverage: Mainly due to the decrease in profit and increase in interest expense.
‧
‧
‧
‧
3. The financial information is audited and certified by the CPA every year. The financial information as of March 31, 2023 has been
reviewed by the CPA.
189
▓ 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.
190
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.
191
▓
Parent-Company-Only Financial Analysis
Year
Analysis
Financial Analysis for the Last Five Years
As of
March 31,
2023
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 (%)
2018
2019
2020
2021
2022
70.29
68.63
72.53
75.11
69.36
5,541.36 4,461.19 4,625.34
4,954.29 5,420,.16
111.56
111.16
110.40
107.61
109.38
89.79
88.45
89.44
6.14
5.08
4.97
15.81
4.97
4.87
71.80
73.46
75.01
18.82
17.55
18.29
5.95
5.86
5.73
88.77
21.84
4.64
78.73
19.59
5.72
87.83
4.15
4.37
83.48
17.10
5.34
19.39
20.79
19.95
18.62
21.34
431.73
385.90
379.40
460.37
409.46
N.A.
2.66
3.06
8.59
2.64
2.46
6.57
2.73
2.73
8.80
2.80
3.15
11.58
2.43
2.26
6.40
22.60
17.75
23.66
32.77
18.23
Net margin (%)
Earnings per share (dollar)
Cash flow ratio (%)
0.98
2.05
0.76
1.60
0.94
2.15
1.08
2.90
(Note1)
6.80
(Note1)
(Note1)
Cash flow
Cash flow adequacy ratio (%)
5.45
(Note1)
(Note1)
(Note1)
Cash reinvestment ratio (%)
(Note1)
8.29
(Note1)
(Note1)
Leverage
Operating leverage
Financial leverage
Note: 1.The ratio is negative.
2.59
1.39
2.43
1.30
3.17
1.13
2.94
1.10
0.73
1.67
22.15
55.25
35.06
3.11
1.54
2. The financial ratio has changed by up to 20% in the past two years:
˙Interest coverage: Mainly due to the increase in interest expense compared to the earlier period.
˙Return on assets: Mainly due to the decrease in net income compared to the earlier period.
˙Return on equity: Mainly due to the decrease in net income compared to the earlier period.
˙Operating income to paid-in capital ratio: Mainly due to the decrease in income before tax compared to the earlier period.
˙Net margin: Mainly due to the decrease in net income compared to the earlier period.
˙Earnings per share: Mainly due to the decrease in net income compared to the earlier period.
˙Cash flow ratio: Mainly due to the increase in net cash inflow from operating activities compared to the earlier period.
˙Cash flow adequacy ratio: Mainly due to the increase in net cash inflow from operating activities compared to the earlier period.
˙Cash reinvestment ratio: Mainly due to the increase in net cash inflow from operating activities compared to the earlier period.
˙Financial leverage: Mainly due to the increase in interest expense compared to the earlier period.
3. The financial information is audited and certified by the CPA every year.
192
▓ 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.
193
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.
194
6.3
Audit Committee’s Report for the Most Recent Year
Audit Committee’s Review Report
The Company’s 2022 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 2022 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. 2023 Annual General Shareholders’ Meeting
Chairman of the Audit Committee: Min Chih Hsuan
March 15, 2023
195
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 2022 to the publication date
of this annual report: None.
196
(19.79)
(3.84)
6.74
77.30
(15.57)
(24.83)
77.94
(21.53)
-
(24.48)
0.46
(76.32)
-
9.19
4.83
VII. Review of Financial Conditions, Financial Performance, and Risk
Management
7.1
Analysis of Financial Status
Year
Analysis
Current Assets
Investments accounted for using equity
method
2022
2021
Unit: TWD Thousands
Difference
Amount
%
390,706,503
487,115,390
(96,408,887)
8,047,569
8,369,312
(321,743)
Property, plant and equipment
28,808,211
26,990,364
1,817,847
Other Assets
Total Assets
Current Liabilities
Other Liabilities
Total Liabilities
Ordinary Share
Capital surplus
Retained Earnings
Other Equity Interests
Treasury stock
Non-controlling Equity
Total Equity
25,922,150
14,620,274
11,301,876
453,484,433
537,095,340
(83,610,907)
302,384,911
402,242,095
(99,857,184)
23,689,679
13,313,442
10,376,237
326,074,590
415,555,537
(89,480,947)
44,071,466
-
6,724,856
(1,646,276)
69,651,940
(8,206,750)
(881,247)
317,119
6,263,646
-
935,551
5,870,040
11,115,089
10,179,538
127,409,843
121,539,803
44,071,466
5,078,580
69,969,059
(1,943,104)
(881,247)
Note: Analysis of variations exceeding 20% and amounting to more than NTD10 million:
Increase in other assets: Mainly due to the increase in the right-of-use assets and deferred tax assets.
Decrease in current liabilities: Mainly due to the decrease in the notes and accounts payables and short-borrowings.
Increase in non-current liabilities: Mainly due to the increase in the non-current lease liabilities.
Decrease in total liabilities: Mainly due to the decrease in the current liabilities, such as the short-borrowings and the notes and
accounts payables.
Decresae in capital surplus: Distribution cash from capital surplus to stockholders.
Increase in other equity interests: Mainly due to the decrease in losses of exchange differences on transition of foreign financial
statements.
■ Effect of changes on the Company’s financial position and Future response actions:
Judging from the aforementioned causes, the effect from changes on the Company’s financial position in the last
two years are normal outcomes from standard operating activities.
197
7.2 Analysis of Financial Performance
Analysis
Net Sales
Cost of Sales
Gross Profit
Operating Expenses
Operating Income
Non-operating Income and Expenses
Profit Before Tax
Less: Income Tax Expense
Net Profit (loss)
Other Comprehensive Income (after tax)
Year
2022
2021
Unit: TWD Thousands
Difference
Amount
%
1,073,245,915
1,235,682,015
(162,436,100)
1,032,881,736
1,194,190,441
(161,308,705)
(13.15)
(13.51)
(2.72)
(10.67)
(30.94)
(63.46)
(38.61)
(41.44)
(37.84)
41,491,574
(1,127,395)
28,142,981
3,002,201
13,348,593
(4,129,596)
4,119,242
(2,614,109)
17,467,835
(6,743,705)
3,727,347
(1,544,744)
13,740,488
(5,198,961)
(1,237,908)
7,773,559
(627.96)
40,364,179
31,145,182
9,218,997
1,505,133
10,724,130
2,182,603
8,541,527
6,535,651
Total Comprehensive Income
15,077,178
12,502,580
2,574,598
20.59
Note: Analysis of variations exceeding 20%:
Decrease in operation income: Mainly due to the decrease in net sale and increase in operation expense.
Increase in no-opeation income & expesnses: Mainly due to the increase in interest expenses.
Decrease in profit before tax, income tax expenses, and net profit (loss): Mainly due to the decrease in operating profit and net
non-operating income.
Increase in other comprehensive income (after tax) loss: Mainly due to the decrease in unrealized losses from investments in
equity instruments measured at fair value through other comprehensive income.
Increase in total comprehensive income: Mainly due to the increase in exchange differences on transition of foreign financial
statements.
■ 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
In the post-epidemic era, countries around the world are gradually relaxing epidemic control measures, and
consumer life and industrial economy are also recovering back to normal. Nevertheless, the global inflation
pressure, raising interest rates among countries and geopolitical issues continue to develop in 2023, bringing
uncertainties to the economy. For companies relying on export businesses, it will still be a challenging year.
The market research institutions’ predictions on the economy and industry in 2023 are still conservative;
however, the economy during the second half of the year is expected to be better than the first half of the
year. Facing the rapidly changing environment, we will further enhance the implementation of “Innovation,
Talent Cultivation, Execution”, to establish long-term competitive advantages. The new businesses of servers,
automotive electronics, medical care and 5G communication devices will continuous to deploy and progress
steadily to become the pillars of growth in the mid- to long-term. The related market analysis please refer to
page 137~142 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.
198
7.3 Analysis of Cash Flow
7.3.1 Cash Flow Analysis for the Current Year
Cash and Cash
Equivalents,
Beginning of Year
(1)
Net Cash Flow from
Operating Activities
(2)
Other Cash
Inflow
(Outflow)
(3)
Cash Surplus
(Deficit)
(1)+(2)+(3)
Unit: TWD Thousands
Financing of Cash Deficit
Investment Plans
Financing Plans
75,162,103
58,638,610
(54,135,411)
79,665,302
-
-
Note: 1. Other Cash Inflow (Outflow) includes the Cashflow in investing activities, financing activities, and foreign exchange
impacts.
2. Analysis of the change of 2022 cash flows:
•Net cash inflow 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 outflow of financing activities: Mainly due to Repayment the loan 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
Actual or Planned
Source of Capital
Date of Completion
Total Capital
Actual or Expected Capital
Expenditure 2021
Unit: TWD Thousands
Property, plant and
equipment
Cash flow
generated from
operations and
loans
7.4.2 Expected Benefits
2022
7,727,184
7,727,184
The Company’s major capital expenditure is invested to meet the needs of business growth and capacity expansion.
Meanwhile, the Company aims to increase automation equipment to enhance production efficiency and achieve the
goal of smart manufacturing, to build the Company’s long-term competitiveness.
199
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
businesses, 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 2022 consolidated loss from investment using the equity method came to approximately TWD 272
million, the reason for the loss was mainly because of the negative impact from the sluggish market or lagging
of economies of scale.
3. 2023 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:
200
(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 foreigen currency exchange transaction
(including valuation of financial instruments)
Unit: TWD Thousands; %
2022
(155,575)
1,356,532
Regarding interest rates 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”.
201
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 2023 R&D expenses are expected to be TWD 17.2
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 (including information security risks) 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.
Besides, in response to the changing trend of external information security and the ever-changing hacking
techniques, we continue to pay attention to the latest information and technology, keep up with the times in our
defense and management, effectively block information security threats, and reduce operational impact.
According to internal and external information security issues, invest appropriate resources and improve control
measures to reduce risks. There were no major information security events in 2022, nor the leakage of
confidential information affected our customers and business, and caused significant impact to the financials.
202
7.6.6 The Impact of Changes in Corporate Image on Corporate Risk Management, and the Company’s
Response Measures
Compal has concentrated on the IT and Communications industry for many years and has firmly adhered to a
business philosophy of transcendence, sincerity, and harmony in a culture of ethics and honesty. We aim to be
the best in world-class professional design, manufacturing, and services. As we pursue business growth, we
always remember our obligations as a corporate citizen. We have strengthened corporate governance, fulfilled
corporate social responsibility, and have established a good corporate image. As the Company scale and business
complexity 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 strengthening the risk management and early detecting
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 2022 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
203
(1) 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 counsel to defend such litigation. Considering the fact that whether the Company has
committed the trade secret/copyright infringement depends 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.
(2) Huawei Technologies Co., Ltd. filed an infringement litigation against the Group on October 28, 2022. The
Group will carefully evaluate the litigation, discuss with related client for the following strategies and actions,
and engage professional attorneys, to protect the rights and reputation of the Company from any damage.
7.6.13 Other Major Risks
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 2022.
7.7 Other Material Issues: None
204
VIII. Special Disclosure
8.1
Summary of Affiliated Companies (As of Dec 31, 2022)
8.1.1 Affiliated enterprises report
1. Chart
205
4 1 Mithera Capital Io LP 99.00% 46.42% Compal Broadband Networks Netherlands B.V. 100% 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% Kinpo&Compal Group Assets Development Corporation Shennona Corporation 70% 10% 100% 59.10% Compal Ruifang Health Assets Development Corporation Poindus Systems Corp. △ 100% 56.04% Note 1: Resolution to dissolve and liquidate on December 26, 2022. 100%
206
4 Arcadyan Technology Affiliated Business Organization Chart Henghao Technology Co., Ltd. Affiliated Organization Chart Allied Power Affiliated Business Organization Chart Poindus Systems Affiliated Business Organization Chart 100% Arcadyan India Private Limited. 99% 1% Great Arch Group Ltd. Leading Images Limited Astoria Networks Inc. Astoria Networks GmbH 31.6% Arcadyan Technology (Vietnam) Co., Ltd. 100% Arcadyan Technology Corp. (Russia),LLC 100% 100% 100% 100% 100% Note 1: Complete the liquidation process on August 19, 2022.
2. Backgrounds of affiliated enterprises (December 31, 2022)
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 06, G/F, The Lodge, 535
Canton Road, Kowloon, 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 06, G/F, The Lodge, 535
Canton Road, Kowloon, Hong
Kong
207
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
Development, production and sale of
communication equipment,
cellphones, computers and smart
watches, and provision of relevant
technical services
USD 12,100
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
Area)
No. 189, Qian Jin East
Road, Development Zone,
Kunshan, Jiangsu, P.R. China
Room 435,No. 8 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, China (Sichuan) Pilot
Free Trade Zone
208
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.
2011.05.26
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
1997.10.29
1997.08.20
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$8,130
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 District, 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
209
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
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 2,203,543
USD 669
EUR 25
KRW 100,000
Research, development, production
and sale of WLAN, integrated digital
home and mobile office products
Sales and technical support of wireless
network products
Sale and technical support of wireless
networking products
Sale of wireless networking products
BRL 9,682
Sale of wireless networking products
INR 75,000
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 47,780
General investments
USD 29,050
General investments
USD 8,100
Research and sale of wireless
networking products
USD 29,000
Manufacturing of wireless network
products
Rua Kanebo 175, Galpões C4 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, LOT 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
Tower Three International
Towers, Sydney ' Level 38,
300 Barangaroo Avenue, Sydney
NSW 2000
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 1503, 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
210
Company name
Arch Holding (BVI)
Corp.
Date of
establishment
2007.05.24
Compal Networking
(Kunshan) Co., Ltd.
2006.06.26
Zhi-Bao Technology
Inc.
Tatung Technology
Inc.
2009.08.10
2008.01.21
Address
Paid-up capital Main business activities or products
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, British Virgin Islands
No. 520 Nanbang Road,
Economic and Technological
Development Zone, Kunshan,
Jiangsu, China, China
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
13F-1, No. 1, Taiyuan 1st Street,
Zhubei City, Hsinchu County
USD 10,550
General investments
USD 12,450
Manufacturing of wireless network
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
Manufacturing of wireless network
products
TWD 680,021
2018.11.22
2012.12.11
2012.02.03
2001.02.13
2009.08.19
2017.01.01
Bekersveld 192630 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
2010.11.01
No.520, Nanbang Rd., Kunshan
City, Jiangsu Province, China
USD 15,000
Production touch panels and LCD
displays
2000.05.23
No. 89, Land 36, Section 2,
Tanxing Road, Tanyang Village,
Tanzi District, Taichung City
TWD 411,458 Manufacturing of machinery and
lighting equipment, retail sale of
machinery, and international trade
211
Tatung Technology
of Japan Co., Ltd.
Quest International
Group Co., Ltd.
Exquisite Electronic
Co., Ltd.
Tatung Home
Appliances (Wu
Jiang) Co., Ltd.
Compal Broadband
Networks Inc.
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.
Company name
Ripal Optotronics
Co, Ltd.
Date of
establishment
2013.8.26
Rayonnant
Technology Co., Ltd
Compal Rayonnant
Holdings Ltd.
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
2F, No. 256, Section 3,
Zhongzheng Road, Rende
District, Tainan City
No. 581, Ruiguang Road, Neihu
District, Taipei City
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
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 60,000
Manufacturing of home appliances and
audiovisual electronics
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.
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
2008.10.27
2007.08.09
2014.02.19
1999.01.16
2000.07.05
2003.09.23
2004.03.26
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
212
Company name
Compal Wireless
Communications
(Nanjing) Co., Ltd.
Webtek Technology
Co., Ltd.
Date of
establishment
2006.02.13
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
No.68-2, Suyuan Road, Export
Processing Zone (South Area).
Jiangning, Nanjing, China
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
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 49,000
Production of cellphones and tablets
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
No. 581, Ruiguang Road, Neihu
District, Taipei City
8F, No. 385, Yangguang St.,
Neihu District, Taipei City
TWD 200,000
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
USD 1
General investments
TWD 200,000
USD 1,600
Management consultation, leasing, and
wholesale/retail of medical equipment
Medical care IoT business
TWD 100,000
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
213
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 and sales
of MEMS microphone technology
products
Company name
Kinpo&Compal
Group Assets
Development
Corporation
Compal Ruifang
Health Assets
Development
Corporation
POINDUS SYSTEMS
CORP.
Poindus Investment
Corp.
Poindus Systems UK
Limited
2022.06.24
2009.06.15
2009.07.21
2015.11.1
Adasys GmbH
Elektronische
Komponenten
QIJIE
ELECTRONICS(SHEN
ZHEN)CO.,LTD
1994.03.29
2019.01.25
Poindus Systems
GmbH
2009.09.23
Date of
establishment
2021.12.21
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
7F., No. 669, Zhongzheng Rd.,
Xinzhuang Dist., New Taipei
City
5F., No. 59, Ln. 77, Xing'ai Rd.,
Neihu Dist., Taipei City
6F., No. 1, Ln. 28, Xingzhong
Rd., Neihu Dist., Taipei City
3 Devonshire Business Park
Knights Park Road
Basingstoke
RG21 6XN
United Kingdom
Max-Planck-Strasse 10
70806 Kornwestheim
5th Floor, Building A2, Block 2,
Huiming Sheng Industrial Park,
Heping Community, Fuhai
Street, Bao'an District,
Shenzhen City. (Huiming Sheng
Industrial Park, Factory #2)
Max-Planck-Strasse 10
70806 Kornwestheim
TWD 100,000
Investment and development of public
construction and specific areas, etc.
TWD 210,000
Sales of computers and peripherals
TWD 41,000
Investment and holding
GPB 300
Sales of computers and peripherals
EUR 100
Sales of computers and peripherals
USD 1000
Sales of computers and peripherals
EUR 25
Sales of computers and peripherals
3. Business activities and relationships of affiliated enterprises (December 31, 2022)
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
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
214
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Mexcom Electronics, LLC
Big Chance International Co., Ltd.
Center Mind International Co., Ltd.
Compal Investment (Sichuan) Co., Ltd.
Prisco International Co., Ltd.
Core Profit Holdings Ltd.
Billion Sea Holdings Ltd.
Mithera Capital Io LP
High Shine Industrial Corp.
Intelligent Universal Enterprise Ltd.
Goal Reach Enterprises Ltd.
Panpal Technology Corporation
Gempal Technology Co., Ltd.
Hong Ji Capital Co., Ltd.
Hong Jin Investment Co., Ltd.
Compal Rayonnant Holdings Ltd.
Allied Power Holding Corp.
Flight Global Holding Inc.
Compalead Electronics B.V.
Etrade Management Co., Ltd.
Compal Electronics (Holding) Ltd.
Arcadyan Holding (BVI) Corp.
Arch Holding (BVI) Corp.
Zhi-Bao Technology Inc.
Quest International Group Co., Ltd.
Exquisite Electronic Co., Ltd.
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
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
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.
Holds investment interest in Poindus Systems GmbH.
Poindus Investment Corp.
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
Arcadyan Technology N.A. Corp.
Sale of wireless networking products
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.
215
Electronic
products
wholesaling
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Electronic
products
manufacturing
Tatung Technology Inc.
Tatung Technology of Japan Co., Ltd.
Arcadyan Germany Technology GmbH
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.
Development and sale of digital home electronics
Sale of digital home electronics
Sale and technical support of wireless networking products
Sale of wireless networking products
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 and sales of MEMS microphone
technology products
Manufacturing, processing and trading of notebooks, computer
monitors, LCD TVs, cellphones, and electronic parts
Production of notebooks, cellphones and electronics
Compal Electronics Technology (Kunshan)
Co., Ltd.
Compal Information (Kunshan) Co., Ltd. Production of notebooks, tablets and electronics
Compal Information Technology
(Kunshan) Co., Ltd.
Compal Digital Technology (Kunshan) Co.,
Ltd.
Kunshan Botai Electronics Co., Ltd.
Compal Electronics (China) Co., Ltd.
Compal Smart Device (Chongqing) Co.,
Ltd.
Production of notebooks and electronics
Production and after-sale service of notebooks and cellphones
Manufacturing and sale of displays
Development, production and sale of communication equipment,
cellphones, computers and smart watches, and provision of relevant
technical services
Production and sale of LCD TVs
Production and sale of notebooks, cellphones and digital products
Compal Optoelectronics (Kunshan) Co.,
Ltd.
Compal Display Electronics (Kunshan)
Co., Ltd.
Amexcom Electronics, Inc.
Compal Electronics (Chengdu) 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
Compal Electronics (Chongqing) Co., Ltd. Development, production and sale of notebooks and related
Compal (Vietnam) Co., Ltd.
Compalead Eletrônica do Brasil Indústria
e Comércio Ltda.
Compal Electronica da
Amazonia Ltda
Unicom Global. Inc
Arcadyan Technology Corp.
Compal Broadband Networks Inc.
Henghao Technology Co., Ltd.
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
216
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Mactech Co., Ltd.
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
Production and sale of wireless products
Compal Networking (Kunshan) Co., Ltd.
Arcadyan Technology (Vietnam) Co., Ltd. Production and sale of wireless products
Tatung Home Appliances (Wu Jiang) Co.,
Ltd.
HengHao Optoelectronics Technology
(Kunshan) CO., LTD
Rayonnant Technology (Taicang) Co., Ltd. Development and production of aluminum and magnesium alloy-
Manufacturing of home appliances and audiovisual electronics
Production touch panels and related components
Production and sale of digital home electronics
Lucom Display Technology (Kunshan) Ltd. Production touch panels and LCD displays
Compower Global Service Co., Ltd.
Compal Management (Chengdu) Co., Ltd. Management consultation, training, business information, tax
Maintenance and after-sale service of notebooks and cellphones
based products
HANHELT Communications (Nanjing) Co.,
Ltd.
Bizcom Electronics, Inc.
Compal Europe (Poland) Sp. z o.o.
CGS Technology (Poland) Sp. z o.o.
Auscom Engineering Inc.
Compal Wise Electronic
(Vietnam) Co., Ltd.
Compal USA (Indiana), Inc.
POINDUS SYSTEMS CORP.
QIJIE ELECTRONICS(SHENZHEN)CO.,LTD
Poindus Systems UKLimited
Adasys GmbH Elektronische
Komponenten
Poindus Systems GmbH.
Compal Development and Management
(Vietnam) Co., Ltd.
Kinpo&Compal Group Assets
Development Corporation
Compal Ruifang Health 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
Sales of computers and peripherals
Sales of computers and peripherals
Sales of computers and peripherals
Sales of computers and peripherals
Sales of computers and peripherals
Construction and investment of infrastructures at Ba-Thien Industrial
Zone, Vietnam
Real estate development leasing and related management business
Investment and development of public construction and specific
areas, etc.
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
Instruments and International Trade
217
Construction
and
development
Leasing and
management
consulting
Industry
category
Manufacturing
and sale of
medical
equipment
Medical care
Technical
service
Name of affiliated enterprise
Business relationship with other affiliated enterprises
General Life Biotechnology Co., Ltd.
Manufacturing and sale of medical equipment
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
4. Directors, Supervisors, and President of affiliated enterprises
December 31, 2022 Unit: TWD Thousands; shares; %
Company name
Title
Name or name of representative
Compal Electronics,
Inc.
Chairman
Director and
President
Director
Director
Sheng-Hsiung Hsu
Jui-Tsung Chen
Binpal Investment Co., Ltd.
(Representative: Wen-Being Hsu )
Kinpo Electronics, Inc.
(Representative: Chieh-Li Hsu)
Charng-Chyi Ko
Sheng-Chieh Hsu
Yen-Chia Chou
Chung-Pin Wong
Director
Director
Director
President and
Director
Chiung-Chi Hsu
Director
Ming-Chih Chang
Director
Anthony Peter Bonadero
Director
Director
Sheng-Hua Peng
Independent Director Min-Chih Hsuan
Independent Director Duei Tsai
Independent Director Wen-Chung Shen
Representative
Representative
Director
Compal
International
Holding Co., Ltd.
Compal
International
Holding (HK)
Limited
Compal Electronics
Technology
(Kunshan) Co., Ltd.
Director
Director
Director
Chairman
Director
Director
Supervisor
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)
218
Shares held
Shares (Note)
8,975,401
Shareholding percentage
0.20%
35,352,587
5,000,000
151,628,692
7,896,867
9,204,201
8,022,874
6.618,618
2,117,731
1,919,489
0
835,000
0
0
2,836,000
5,001,000
4,117,569
0.80%
0.11%
3.44%
0.18%
0.21%
0.18%
0.15%
0.05%
0.04%
0%
0.02%
0.00%
0.00%
0.06%
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 368,520
100.00%
TWD 368,520
100.00%
TWD 368,520
100.00%
TWD 368,520
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Compal Information
(Kunshan) Co., Ltd.
Compal Information
Technology
(Kunshan) Co., Ltd.
Compal Digital
Technology
(Kunshan) Co., Ltd.
Kunshan Botai
Electronics Co., Ltd.
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK)
Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK)
Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK)
Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK)
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK)
Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK)
Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK)
Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK)
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK)
Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK)
Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK)
Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK)
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK)
Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK)
Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK)
Limited
(Representative: Ming-Chih Chang)
Compal International Holding (HK)
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
219
0
0.00%
TWD 368,520
100.00%
TWD 368,520
100.00%
TWD 368,520
100.00%
TWD 368,520
100.00%
0
0.00%
TWD 737,040
100.00%
TWD 737,040
100.00%
TWD 737,040
100.00%
TWD 737,040
100.00%
0
0.00%
TWD 614,200
100.00%
TWD 614,200
100.00%
TWD 614,200
100.00%
TWD 614,200
100.00%
0
0.00%
TWD 30,710
100.00%
TWD 30,710
100.00%
TWD 30,710
100.00%
TWD 30,710
100.00%
0
0.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
0
1,000
1,000
0.00%
Director
Director
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%
100.00%
Chairman
7,350,000
7,350,000
Supervisor
TWD 8,828
TWD 8,828
48,010,000
14,900,000
14,900,000
62,297,500
48,010,000
Managing Director
President
Director
Fortune Way
Technology Corp.
Just International
Ltd.
Compower Global
Service Co., Ltd.
Compal Electronics
(China) Co., Ltd.
Jenpal International
Ltd.
Compal Display
Holding (HK)
Limited
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 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
Compal Smart
Device (Chongqing)
Co., Ltd.
Compal
Optoelectronics
(Kunshan) Co., Ltd.
Compal System
Trading (Kunshan)
Co., Ltd.
President
Chairman
President
Chairman
President
Chairman
TWD 1,136,270
TWD 1,136,270
TWD 1,136,270
TWD 1,136,270
TWD 371,591
TWD 371,591
TWD 371,591
TWD 371,591
TWD 264,853
TWD 264,853
TWD 264,853
TWD 264,853
TWD 42,994
TWD 42,994
62,297,500
Supervisor
Supervisor
Supervisor
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Director
Director
Director
Director
Director
Director
Director
0.00%
0.00%
0.00%
0
0
0
220
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Director
Compal Investment
(Jiangsu) Co., Ltd.
Compal Display
Electronics
(Kunshan) Co., Ltd.
Compal
International
Ltd.
Compal Electronics
International Ltd.
Smart International
Trading Ltd.
Director
Director
Director
Director
Mexcom
Technologies, LLC
Mexcom
Electronics, LLC
(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 )
Compal Electronics International Ltd.
(Representative: Hsin-Kung Mao )
Compal Electronics International Ltd.
(Representative: Hsin-Kung Mao )
TWD 42,994
100.00%
TWD 42,994
0
100.00%
0.00%
TWD 479,076
100.00%
TWD 479,076
100.00%
TWD 479,076
100.00%
TWD 479,076
100.00%
0
0.00%
TWD 460,650
100.00%
TWD 460,650
100.00%
TWD 460,650
100.00%
TWD 460,650
100.00%
0
500,000
500,000
0.00%
100.00%
100.00%
9,245,000
100.00%
9,245,000
100.00%
1,000
1,000
TWD 31
100.00%
100.00%
100.00%
TWD 252,866
100.00%
Big Chance
International Co.,
Director
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
90,820,000
100.00%
221
Company name
Title
Name or name of representative
Ltd.
Center Mind
International Co.,
Ltd.
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
Director
Supervisor
President
Director
Director
Compal Electronics
(Chengdu) Co., Ltd.
Compal
Management
(Chengdu) Co., Ltd.
Prisco International
Co., Ltd.
Compal Electronics
(Chongqing) Co.,
Ltd.
Core Profit Holdings
Ltd.
Billion Sea Holdings
Ltd.
Director
Director
Mithera Capital Lo Director
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 )
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.
222
Shares held
Shares (Note)
Shareholding percentage
90,820,000
100.00%
80,820,000
100.00%
80,820,000
100.00%
TWD 2,481,982
100.00%
TWD 2,481,982
100.00%
TWD 2,481,982
100.00%
TWD 2,481,982
100.00%
0
0.00%
TWD 2,456,800
100.00%
TWD 2,456,800
100.00%
TWD 2,456,800
100.00%
TWD 2,456,800
100.00%
0
TWD 24,568
0.00%
100.00%
TWD 24,568
100.00%
TWD 24,568
100.00%
TWD 24,568
0
10,000,000
100.00%
0.00%
100.00%
10,000,000
100.00%
TWD 307,100
100.00%
TWD 307,100
100.00%
TWD 307,100
100.00%
TWD 307,100
0
147,000,000
100.00%
0.00%
100.00%
147,000,000
100.00%
147,000,000
100.00%
147,000,000
TWD 153,550
100.00%
99.00%
Company name
Title
Name or name of representative
LP
(Representative: David Liao )
Shares held
Shares (Note)
Shareholding percentage
Compal USA
(Indiana), Inc.
Chairman
High Shine
Industrial Corp.
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
Hong Ji
Capital Co., Ltd.
Director and
President
Director
Supervisor
Chairman
Director and
President
Director
Supervisor
Hong Jin
Investment Co., Ltd.
Chairman
Director and
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 )
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 2,057,570
100.00%
12,700,000
100.00%
12,700,000
100.00%
TWD 390,017
100.00%
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Ming-Chih Chang )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
223
500,000,000
100.00%
500,000,000
100.00%
500,000,000
100.00%
500,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
29,500,000
29,500,000
100.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
President
Director
Supervisor
President
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Ricardo F Battaglia
29,500,000
100.00%
29,500,000
100.00%
President
Ricardo F Battaglia
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
Director
Director
Director
Director
Director
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Keng-Tien Lin)
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu) )
Arcadyan Technology Corp.
(Representative: Paul Christopher
Devlin)
Arcadyan Technology Corp.
(Representative: Management
Company ABU accounting services
Limited Liability Company)
224
0
0
0
0
0
41,304,504
41,304,504
41,304,504
0.00%
0.00%
0.00%
0.00%
0.00%
18.74%
18.74%
18.74%
41,304,504
18.74%
0
208,669
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
99.00%
50,000
50,000
50,000
50,000
100.00%
100.00%
100.00%
100.00%
50,000
100.00%
0
100.00%
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
Technology Limited
Arcadyan
Technology
Australia Pty Ltd.
Arcadyan
Technology
Corporation
(Russia), LLC.
Company name
Title
Name or name of representative
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
Tatung Technology
Inc.
Chairman
Director
Chairman
Director
Chairman
Director
Chairman
Director
Chairman
Director
Director
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Supervisor
President
Chairman
Director
Director
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: Chih-Fang Lee)
Arcadyan Holding (BVI) Corp.
(Representative: Shih-Wei Huang)
Chung-Pao, Liu
Arch Holding (BVI) Corp.
(Representative: Fong-Yu, Lu) )
Arch Holding (BVI) Corp.
(Representative: Jui-Tsung Chen )
Arch Holding (BVI) Corp.
(Representative: Chao-Peng Tseng)
Arch Holding (BVI) Corp.
(Representative: Ching-Hsiung Lu)
Chung-Pao, Liu
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng)
Arcadyan Technology Corp.
(Representative: Cheng-Chiang Wang)
Arcadyan Technology Corp.
(Representative: Ching-Hsiung Lu)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu )
Arcadyan Technology Corp.
(Representative: Shih-Wei Huang)
Chao-Peng Tseng
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu)
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng )
Arcadyan Technology Corp.
(Representative: Shih-Wei Huang)
Arcadyan Technology Corp.
225
Shares held
Shares (Note)
Shareholding percentage
47,780,148
100.00%
47,780,148
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
0
TWD 382,340
100.00%
0.00%
100.00%
TWD 382,340
100.00%
TWD 382,340
100.00%
TWD 382,340
0
34,980,000
100.00%
0.00%
100.00%
34,980,000
100.00%
34,980,000
100.00%
34,980,000
100.00%
34,980,000
100.00%
0
25,027,910
25,027,910
25,027,910
25,027,910
0.00%
61.04%
61.04%
61.04%
61.04%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Director
Director
Director
Supervisor
Supervisor
Supervisor
President
Director
Director
Tatung Technology
of Japan Co., Ltd.
Quest International
Group Co., Ltd.
Director
Exquisite Electronic
Co., Ltd.
Tatung Home
Appliances (Wu
Jiang) Co., Ltd.
Arcadyan India
Private Limited
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Compal Broadband
Networks Inc.
Chairman
Director
Director
Director
(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)
Shih-Wei 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: Nien-Che, Hsiung)
Zhi-Bao Technology Inc.
(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)
226
Compal Broadband
Networks Belgium
25,027,910
1,027,056
61.04%
2.51%
4,570,830
11.15%
0
0
2,727,272
0
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
0
7,465,000
35,000
7,465,000
29,060,176
29,060,176
3,575,000
29,060,176
0
0
0
1,160,010
20,300
100.00%
0.00%
99.00%
1.00%
99.00%
42.73%
42.73%
5.25%
42.73%
0.00%
0.00%
0.00%
1.71%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
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.
Rayonnant
Technology Co., Ltd.
Director
Compal Broadband Networks Inc.
(Representative: Yu- Ho Wang)
20,300
100.00%
Chairman
Vice Chairman
and President
Director
Director
Supervisor
Director
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Director
Director
Director
Supervisor
Chairman
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Chen-Chang Hsu)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Henghao Technology Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Henghao Technology Co., Ltd.
(Representative: Chung-Pin Wong)
HengHao Holdings A Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
HengHao Holdings A Co., Ltd.
(Representative: Chung-Pin Wong)
HengHao Holdings B Co., Ltd.
(Representative: Chen-Chang Hsu)
HengHao Holdings B Co., Ltd.
(Representative: Chia-Tien Liu)
HengHao Holdings B Co., Ltd.
(Representative: Jui-Hsiang Yang)
HengHao Holdings B Co., Ltd.
(Representative: Cheng-Chiang Wang)
Chen-Chang Hsu
HengHao Holdings B Co., Ltd.
(Representative: Chen-Chang Hsu)
HengHao Holdings B Co., Ltd.
(Representative: Chia-Tien Liu )
HengHao Holdings B Co., Ltd.
(Representative: Jui-Hsiang Yang )
HengHao Holdings B Co., Ltd.
(Representative: Hsiu-Chuan Hsu)
Chen-Chang Hsu
Compal Electronics, Inc.
(Representative: Yung-Ching Chang)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Chen-Chang Hsu)
Compal Electronics, Inc.
(Representative: Ming-Chih Chang)
Wen-Pin Kuo
Chuan-Kuei Lin
Chyou-Jui Wei
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
227
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 1,228,400
100.00%
TWD 1,228,400
100.00%
TWD 1,228,400
100.00%
TWD 1,228,400
100.00%
0
TWD 460,650
0.00%
100.00%
TWD 460,650
100.00%
TWD 460,650
100.00%
TWD 460,650
100.00%
0
21,756,192
21,756,192
21,756,192
21,756,192
21,756,192
1,301,505
1,609,172
0
0.00%
52.88%
52.88%
52.88%
52.88%
52.88%
3.16%
3.91%
0.00%
29,500,000
100.00%
Company name
Title
Name or name of representative
Director and
President
Director
Supervisor
Director
Director
Director
Director
Director
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Director
Director
Director
Director
Director
Chairman
Director and
President
Compal Rayonnant
Holdings Ltd.
Allied Power
Holding Corp.
Primetek
Enterprises Ltd.
Rayonnant
Technology
Holdings (HK) Co.,
Ltd.
Rayonnant
Technology
(Taicang) Co., Ltd.
Bizcom Electronics,
Inc.
Compal Europe
(Poland) Sp. z o.o.
CGS Technology
(Poland)
Sp. z o.o.
Auscom
Engineering Inc.
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.
(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)
228
Shares held
Shares (Note)
Shareholding percentage
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
8,651,000
59.10%
40.90%
3,151,000
100.00%
3,151,000
100.00%
18,000,000
100.00%
18,000,000
100.00%
TWD 552,780
100.00%
TWD 552,780
100.00%
TWD 552,780
100.00%
TWD 552,780
100.00%
0
100,000
100,000
100,000
100,000
136,080
136,080
245,911
245,911
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
3,000,000
100.00%
3,000,000
100.00%
Company name
Title
Name or name of representative
Flight Global
Holding Inc.
Director
Director
Director
RiPAL Optotronics
Co., Ltd.
Chairman
Director
Director
Supervisor
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Compal Electronics
(Holding) Ltd.
Etrade
Management Co.,
Ltd.
Compal
Communications
(Nanjing) Co., Ltd.
Compal Digital
Communications
(Nanjing) Co., Ltd.
Compal Wireless
Communications
(Nanjing) Co., Ltd.
Webtek Technology
Co., Ltd
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. & Webtek
Technology Co., Ltd
(Representative: Jui-Tsung Chen )
Etrade Management Co., Ltd. and
Compal Display Holding (HK) Limited
(Representative: Sheng-Hua Peng)
Etrade Management Co., Ltd. and
Compal Display Holding (HK) Limited
(Representative: Cheng-Chiang Wang)
Etrade Management Co., Ltd. and
Compal Display Holding (HK) Limited
(Representative: 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 )
229
Shares held
Shares (Note)
Shareholding percentage
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%
71,900,000
100.00%
TWD 829,170
100.00%
TWD 829,170
100.00%
TWD 829,170
100.00%
TWD 829,170
100.00%
0
TWD 178,118
0.00%
100.00%
TWD 178,118
100.00%
TWD 178,118
100.00%
TWD 178,118
0
100.00%
0.00%
TWD 1,504,790
100.00%
TWD 1,504,790
100.00%
TWD 1,504,790
100.00%
TWD 1,504,790
100.00%
0
100,000
0.00%
100.00%
Company name
Title
Name or name of representative
Forever Young
Technology Inc.
HANHELT
Communications
(Nanjing) Co., Ltd.
Director
Chairman and
President
Director
Director
Supervisor
Director
Compal Wise
Electronic
(Vietnam) Co., Ltd.
Unicom Global. Inc. Chairman
Palcom
International
Corporation
Compalead
Electronics B.V.
General Life
Biotechnology Co.,
Ltd.
Giant Rank Trading
Limited
UniCore Biomedical
Co., Ltd.
Director
Director
Supervisor
Chairman
Director
Director
Supervisor
Director
Director
Chairman
Director
Director
Director
Director
Supervisor
Supervisor
Director
Chairman
Director
Director
Director
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)
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.
230
Shares held
Shares (Note)
Shareholding percentage
50,000
100.00%
TWD 61,420
100.00%
TWD 61,420
100.00%
TWD 61,420
100.00%
TWD 61,420
100.00%
TWD 61,420
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
10,000,000
100.00%
6,426,516
100.00%
6,426,516
100.00%
15,030,000
15,030,000
15,030,000
6,922,940
992,000
2,520,000
0
50.12%
50.12%
50.12%
23.08%
3.31%
8.40%
0.00%
-
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
20,000,000
100.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Shennona
Corporation
HippoScreen
Neurotech Corp.
SHENNONA CO.,
LTD.
Aco Healthcare
Co.,Ltd.
Starmems
Semiconductor
Corp.
Kinpo&Compal
Group Assets
Development
Corporation
Poindus Systems
Corp,Ltd.
Director
Supervisor
Director
Director
Director
Chairman
Director
Director
Director
Director
Supervisor
Chairman
Chairman
Director
Director
Director
Director
Supervisor
Chairman
Vice Chairman
Director
Supervisor
Chairman
Director
Director
Director
Supervisor
Chairman
Vice Chairman
(Representative: Cheng-Chiang Wang)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Compal Electronics, Inc.
(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)
Yi-Hung Liu
Long-Song Lin
Cheng-Chiang Wang
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative:Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Hsuan-Bin Chen)
Jian-Hung Liu
Shu-Chin Su
Chyou-Jui Wei
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
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Hsin-Kung Mao)
231
20,000,000
100.00%
20,000,000
100.00%
TWD 48,209
100.00%
TWD 48,209
100.00%
TWD 48,209
100.00%
9,100,000
9,100,000
9,100,000
594,000
90,000
0
600,000
100,000,000
100,000,000
100,000,000
22,227,778
22,227,778
0
3,500,000
3,500,000
2,300,000
0
91.00%
91.00%
91.00%
5.94%
0.9%
0.00%
100.00%
52.04%
52.04%
52.04%
11.57%
11.57%
0.00%
35.00%
35.00%
23.00%
0.00%
52,500,000
70.00%
52,500,000
70.00%
52,500,000
70.00%
22,500,000
0
11,768,199
30.00%
0.00%
56.04%
11,768,199
56.04%
Poindus Investment
Co.,Ltd.
Adasys GmbH
Elektronische
Komponenten
QiJie Electronics
(ShenZhen) Co.,Ltd.
Poindus Systems UK
Limited
Company name
Title
Name or name of representative
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
Mu-Cheng Hu
Director
Director
Independent Director Bing-Xian Wang
Independent Director Sen-Tien Wu
Independent Director Hui-Zhu Yang
Chairman
Poindus Systems Corp,Ltd.
(Representative：Mu-Cheng Hu)
Shuo-Chien Ma
President
Chairman and
President
Wei-Ho Wang
Shares held
Shares (Note)
Shareholding percentage
11,768,199
56.04%
358,000
0
0
0
NT$4,100
-
0
1.70%
0.00%
0.00%
0.00%
100.00%
100.00%
100.00%
0
300
Director
Director
100.00%
Supervisor
Poindus Systems
GmbH
Muh-Perng Hu
Poindus Systems Corp,Ltd.
(Representative: Mu-Cheng Hu)
Poindus Systems Corp,Ltd.
(Representative: Tai-Shan Wu)
Compal Electronics, Inc.
(Representative:Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Chieh-Li Hsu)
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
Note: Limited liability companies are shown in terms of amount and percentage of capital contribution. (Exchange rates for amount
Compal Ruifang
Health Assets
Development
Corporation
10,000,000
10,000,000
10,000,000
10,000,000
Supervisor
Chairman
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Director
Director
300
of capital contribution: USD 1: TWD 30.71, CNY 1: TWD 4.4142, and VND 1: TWD 0.001312.)
232
5. Overview of Operating Status for Affiliated Companies in 2022
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
1,787,680
90,404,161
47,851,053
42,553,108
451,440,379
(670,141)
1,030,304
1,460,443
52,310,980
41,945,986
10,364,994
137,216,792
(237,074)
(43,156)
2,636,051
25,544,304
16,978,781
8,565,523
185,562,285
233,129
Core Profit Holdings Ltd.
4,318,860
8,516,394
849,503
7,666,891
856,623
8,143
2,483,084
42,718,240
42,484,541
233,699
60,362,943
497,484
582,505
301,896
407,288
5,000,000
14,169,502
9,054,817
5,114,685
13,317,573
129,328
(314,769)
(0.63)
900,000
1,000,000
295,000
2,150,114
1,169,692
374,493
12,376
292
65
200,000
102,286
17,804
2,137,738
1,169,400
374,428
84,482
16,505
-
-
-
(266)
(209)
(193)
165,425
97,275
42,400
21,854
(17,207)
(17,399)
3
(64)
(65)
2,203,543
40,020,527
26,081,266
13,939,261
47,167,749
2,199,788
1,915,053
Shennona Corporation
48,209
16,505
-
19.44
(0.90)
6.41
2.05
5.11
1.84
0.97
1.44
0.87
-
9.20
Compal International Holding Co.,
Ltd. and subsidiaries
Just International Ltd.
and subsidiaries
Big Chance International Co., Ltd.
and subsidiaries
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
Arcadyan Technology Corp.
and subsidiaries
Compal Broadband Networks Inc.
and subsidiaries
Henghao Technology Co., Ltd.
and subsidiaries
Mactech Co., Ltd.
680,021
2,642,185
1,129,008
1,513,177
2,514,695
(99,979)
(63,146)
(0.94)
200,150
6,332,934
7,130,455
(797,521)
10,093,756
113,943
(231,377)
411,458
698,454
136,865
561,589
345,290
55,600
44,823
(11.56)
1.09
233
Company Name
Capital
Total Asset
Total liabilities
Net worth
Ripal Optotronics CO, LTD.
60,000
186,590
64,132
122,458
revenue
228,218
income
24,838
Operating
Operating
Net loss/profit for the
EPS (in TWD )
period (after tax)
(After tax)
General life Biotechnology Co., Ltd.
and subsidiaries
Rayonnant Technology Holdings
Ltd.,
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.
300,000
819,571
298,403
521,168
669,577
67,403
295,000
496,130
295,483
200,647
1,430,660
(6,140)
27,157
377,328
856,759
569,025
287,734
1,529,958
(14,055)
32,813
Flight Global Holding Inc.
2,754,741
4,592,857
Compalead Electronics B.V.
197,463
865,231
Etrade Management Co., Ltd.&
subsidiaries
Webtek Technology Co., Ltd.
Forever Young Technology Inc. &
subsidiaries
Unicom Global Inc.
Palcom International Corporation
3,340
1,575
200,000
100,000
36,369
90,156
89,669
101,747
479,006
270,731
93,446
214,356
26,645
298,330
1,017
64,795
82,719
1,174
452,361
(27,599)
92,429
149,561
4,510,138
864,057
131,599
192,166
-
202,778
-
-
2,014
(4,161)
(1,862)
13,266
(167)
(796)
2,224,029
5,266,127
5,245,413
20,714
11,895,451
54,672
756,027
(7,202)
763,229
-
(112)
2,263,465
731,665
1,531,800
526,095
75,238
669,200
145,914
506,587
33,227
162,613
112,687
560,671
128,350
(923)
2,727
-
Compal Electronics (Holding) Ltd.
34
3,617,227
(2,000)
3,619,227
-
HippoScreen Neurotech Corp.
100,000
31,412
SHENNONA CO., LTD.
Aco Healthcare Co.,Ltd.
6,000
30,748
29,835
53,105
9,361
26,139
21,364
22,051
3,696
31,741
234
2,347
21,744
(26,246)
55,498
304
2,056
39,095
(25,022)
(24,930)
24,384
81,417
3,410
(23,440)
3,773
10,180
(152,120)
11,842
93,946
3,035
84,921
102
3,547
-
4.06
2.71
0.92
2.63
34.10
(172.25)
15.34
3.39
(1.69)
1.84
1.31
30.35
1,698.42
-
0.35
-
(2.62)
3.34
(0.13)
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
POINDUS SYSTEMS CORP.
Compal Ruifang Health Assets
Development Corporation
100,000
76,838
5,437
71,401
5,466
(25,987)
(25,660)
750,000
12,161,758
11,439,549
722,209
-
(16,584)
(27,910)
210,000
662,432
140,727
521,705
765,835
8,046
100,000
99,970
30
99,940
-
(333)
5,505
(60)
(2.57)
(0.37)
0.26
(0.01)
6. Common shareholders in controlling and controlled companies: None
235
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, 2022 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, 2023
8.1.3 Affiliation reports: None
236
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, 2023
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 2022 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
237
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, 2022 and 2021
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
9～11
11～40
40～41
41～92
93～95
95
96
96
96
96
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information
97, 101～114
97, 115～119
97, 120～122
98
98～100
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, 2022 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, 2023
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, 2022 and 2021, and the
consolidated statement of comprehensive income, changes in equity and cash flows for the years ended
December 31, 2022 and 2021, 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, 2022 and 2021, and its consolidated financial
performance and its consolidated cash flows for the years then ended December 31, 2022 and 2021, 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 Standards on Auditing of 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 Norm of Professional Ethics for Certified Public Account of Republic of China, and we have fulfilled our
other ethical responsibilities in accordance with these requirement. 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
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, judgement of specific items, 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, 2022 and 2021, 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 Standards on Auditing of 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 the Standards on Auditing of the Republic of China, we exercise
professional judgment and 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, 2023
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, 2022 and 2021
(Expressed in Thousands of New Taiwan Dollars)
Assets
Current assets:
December 31, 2022
December 31, 2021
Amount
%
Amount
%
Cash and cash equivalents (Note (6)(a))
$
79,665,302
17.6
75,162,103
14.0
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 (Notes (6)(f) and (8))
Other current assets (Note (8))
Non-current assets:
187
-
400,754
0.1
186,804,648
41.2
288,436,522
53.7
4,416,073
2,369,411
1.0
0.5
1,729,332
2,445,690
0.3
0.5
111,593,984
24.6
115,012,365
21.4
5,856,898
1.3
3,928,624
0.7
390,706,503
86.2
487,115,390
90.7
Investments accounted for using equity method (Note (6)(g))
Non-current financial assets at fair value through profit or loss (Note (6)(b))
Non-current financial assets at fair value through other comprehensive income (Note (6)(c))
Property, plant and equipment (Notes (6)(k), (6)(l) and (8))
Right-of-use assets (Note (6)(l))
Intangible assets (Note (6)(h))
Deferred tax assets (Note (6)(s))
Other non-current assets (Note (8))
8,047,569
558,909
5,425,908
28,808,211
13,705,316
1,722,165
2,393,778
2,116,074
1.7
0.1
1.2
6.4
3.0
0.4
0.5
0.5
8,369,312
1.6
259,778
6,235,063
26,990,364
3,066,218
1,548,508
1,646,524
1,864,183
-
1.2
5.0
0.6
0.3
0.3
0.3
9.3
62,777,930
13.8
49,979,950
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:
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
2540
2570
2580
2640
2670
3110
3200
3300
3400
3500
Total assets
$
453,484,433 100.0
537,095,340 100.0
36XX Non-controlling interests
Total equity
Total liabilities and equity
See accompanying notes to consolidated financial statements.
5
December 31, 2022
December 31, 2021
Amount
%
Amount
%
$
74,832,426
16.5
118,422,407
22.0
62,527
47,809
-
-
1,589
-
-
-
784,238
0.2
1,065,954
0.2
152,137,066
33.6
220,549,039
41.1
9,701,032
29,622,760
7,202,033
734,061
1,813,555
3,352,565
2,632,039
-
2.1
6.5
1.6
0.2
0.4
0.7
0.6
-
3,517,324
29,701,088
7,013,976
1,204,115
625,292
2,037,822
2,035,437
326,571
19,462,800
4.3
15,741,481
0.7
5.5
1.3
0.2
0.1
0.4
0.4
0.1
2.9
302,384,911
66.7
402,242,095
74.9
11,674,322
1,247,342
9,533,209
660,019
574,787
23,689,679
2.6
0.3
2.1
0.1
0.1
5.2
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
326,074,590
71.9
415,555,537
77.4
44,071,466
5,078,580
9.7
1.1
44,071,466
6,724,856
8.2
1.2
69,969,059
15.4
69,651,940
13.0
(1,943,104)
(0.4)
(8,206,750)
(1.5)
(881,247)
(0.2)
(881,247)
(0.2)
116,294,754
25.6
111,360,265
20.7
11,115,089
2.5
10,179,538
1.9
127,409,843
28.1
121,539,803
22.6
$
453,484,433 100.0
537,095,340 100.0
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2022 and 2021
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)
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
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)(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:
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))
Components of other comprehensive income that will not be reclassified to profit or loss
Components of other comprehensive income (loss) that will be reclassified to profit or loss
Exchange differences on translation of foreign financial statements
Gains (losses) on hedging instrument (Note (6)(z))
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive
income that will be reclassified to profit or loss
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
6
2022
2021
Amount
%
Amount
%
$1,073,245,915 100.0 1,235,682,015 100.0
1,032,881,736
96.2 1,194,190,441
96.6
40,364,179
3.8
41,491,574
3.4
8,232,253
4,983,404
17,929,525
31,145,182
9,218,997
3,089,926
1,363,841
0.8
0.4
1.7
2.9
0.9
0.3
0.1
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
(3,245,701)
(0.3)
(1,049,137)
(0.1)
652,426
(73,104)
(9,431)
(272,824)
1,505,133
10,724,130
2,182,603
8,541,527
-
-
-
-
0.1
1.0
0.2
0.8
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
161,558
-
(56,056)
-
(1,074,884)
(0.1)
630,396
0.1
(21,325)
(49,117)
-
-
135,751
50,190
-
-
(885,534)
(0.1)
659,901
0.1
7,375,388
0.7
(1,892,168)
(0.2)
(47,809)
81,580
(12,026)
7,421,185
6,535,651
15,077,178
7,288,292
1,253,235
8,541,527
13,636,212
1,440,966
15,077,178
-
-
-
0.7
0.6
1.4
0.7
0.1
0.8
1.3
0.1
1.4
1.67
1.66
$
$
$
$
$
$
$
2,192
(25,372)
(17,539)
-
-
-
(1,897,809)
(1,237,908)
12,502,580
(0.2)
(0.1)
1.0
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
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2022 and 2021
(Expressed in Thousands of New Taiwan Dollars)
Equity attributable to owners of parent
Retained earnings
Unappropriated
retained
earnings
38,049,698
12,632,667
(40,067)
12,592,600
(924,672)
(3,164,965)
(5,288,576)
(25,946)
Total
retained
earnings
62,566,181
12,632,667
(40,067)
12,592,600
-
-
(5,288,576)
-
(25,946)
(49,878)
(49,878)
(142,441)
-
-
41,045,820
7,288,292
118,035
7,406,327
(1,237,434)
(940,042)
(7,051,435)
(2,260)
-
-
-
-
-
-
-
(142,441)
-
-
69,651,940
7,288,292
118,035
7,406,327
-
-
(7,051,435)
-
(2,260)
-
-
2,838
-
69,969,059
(38,351)
(38,351)
Exchange
differences on
translation of
foreign
financial
statements
(6,888,977)
-
(1,855,728)
(1,855,728)
-
-
-
-
-
-
-
-
-
-
(8,744,705)
-
7,274,994
7,274,994
-
-
-
-
-
-
-
-
-
-
(1,469,711)
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
(376,952)
-
707,754
707,754
-
-
-
-
-
14,709
49,878
142,441
-
-
537,830
-
(1,032,694)
(1,032,694)
-
-
-
-
-
-
-
36,599
(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)
-
(12,415)
(12,415)
-
6,229,885
6,229,885
(881,247) 111,360,265
7,288,292
6,347,920
13,636,212
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,599
-
-
-
(2,838)
-
-
-
-
-
-
-
-
-
-
-
-
(7,051,435)
(1,762,859)
31,137
(19,818)
100,035
1,217
-
-
(1,943,104)
(881,247) 116,294,754
2,838
8,206,750
39,185,463
(2,838)
-
(461,103)
-
-
(12,290)
Balance at January 1, 2021
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
Disposal of investments in equity instruments measured at fair
value through other comprehensive income
Others
Changes in non-controlling interests
Balance at December 31, 2021
Profit for the year ended December 31, 2022
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, 2022
Ordinary
shares
$ 44,071,466
-
-
-
-
-
-
-
-
-
-
-
-
-
44,071,466
-
-
-
-
-
-
-
-
-
-
-
Capital
surplus
8,342,813
-
-
-
-
-
-
(1,762,859)
61,825
2,132
80,027
-
-
918
6,724,856
-
-
-
-
-
-
(1,762,859)
33,397
(18,066)
100,035
1,217
Legal
reserve
20,414,740
-
-
-
924,672
-
-
-
-
-
-
-
-
-
21,339,412
-
-
-
1,237,434
-
-
-
-
-
-
-
-
-
$ 44,071,466
-
-
5,078,580
-
-
22,576,846
See accompanying notes to consolidated financial statements.
Special
reserve
4,101,743
-
-
-
-
3,164,965
-
-
-
-
-
-
-
-
7,266,708
-
-
-
-
940,042
-
-
-
-
-
-
-
-
7
Non-
controlling
interests Total equity
115,989,650
13,740,488
(1,237,908)
12,502,580
9,157,145
1,107,821
(50,771)
1,057,050
-
-
-
-
-
-
-
-
-
(34,657)
10,179,538
1,253,235
187,731
1,440,966
-
-
-
-
-
-
-
-
-
-
-
(5,288,576)
(1,762,859)
50,588
2,132
80,027
-
918
(34,657)
121,539,803
8,541,527
6,535,651
15,077,178
-
-
(7,051,435)
(1,762,859)
31,137
(19,818)
100,035
1,217
-
(505,415)
11,115,089
(505,415)
127,409,843
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2022 and 2021
(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
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
Impairment loss
Others
Total adjustments to reconcile profit (loss)
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease in financial assets at fair value through profit or loss
Decrease (increase) in notes and accounts receivable
Decrease (increase) in other receivable
Decrease (increase) in inventories
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
(Decrease) increase in notes and accounts payable
Increase in other payables
Increase in refund liabilities
(Decrease) increase in provisions
(Decrease) increase in contract liabilities
Increase 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 other comprehensive income
Acquisition of investments accounted for using equity method
Net cash flow from acquisition of subsidiaries
Proceeds from capital reduction and liquidation of investments
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Increase in restricted assets
Others
Net cash flows used in investing activities
Cash flows from (used in) financing activities:
(Decrease) increase in short-term borrowings
Repayments of bonds payable
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 (used in) from 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
2022
2021
$
10,724,130
17,467,835
7,544,408
30,177
23,672
3,245,701
(3,089,926)
(128,597)
22,025
272,824
(7,086)
9,431
(158)
7,922,471
400,567
99,026,904
357,505
3,761,054
(1,523,444)
438,312
102,460,898
60,938
(62,369,969)
976,433
596,602
(472,840)
(281,716)
1,309,581
(18,337)
(60,199,308)
42,261,590
50,184,061
60,908,191
2,813,791
270,042
(2,697,025)
(2,656,389)
58,638,610
(587,240)
10,028
(54,000)
(135,971)
2,010
(7,727,184)
185,814
(659,132)
(795,029)
(154,230)
(9,914,934)
(43,590,249)
(7,400)
79,108,377
(72,931,768)
(2,422,290)
(8,714,259)
(1,062,788)
207,983
(49,412,394)
5,191,917
4,503,199
75,162,103
79,665,302
$
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
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021
(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, 2023.
(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, 2022:
● 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”
(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, 2023, would not have a significant impact on its consolidated financial
statements:
● 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”
(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”
Amendments to IAS 1 “Non-
current Liabilities with
Covenants”
Effective date per
IASB
January 1, 2024
January 1, 2024
Content of amendment
IAS 1
Under existing
requirements,
companies classify a liability as current
when they do not have an unconditional
right to defer settlement for at least 12
months after
the reporting date. The
amendments has removed the requirement
for a right to be unconditional and instead
now requires that a right to defer settlement
must exist at the reporting date and have
substance.
The amendments clarify how a company
classifies a liability that can be settled in its
own shares – e.g. convertible debt.
new
amendments1,
After reconsidering certain aspects of the
2020
1
amendments clarify that only covenants
with which a company must comply on or
before
the
classification of a liability as current or
non-current.
reporting date affect
IAS
the
Covenants with which the company must
comply after the reporting date (i.e. future
covenants) do not affect a liability’ s
classification at that date. However, when
non-current liabilities are subject to future
covenants, companies will now need to
disclose
users
understand the risk that those liabilities
could become repayable within 12 months
after the reporting date.
information
help
to
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
11
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 IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative
Information “
● IFRS16 “Requirements for Sale and Leaseback Transactions”
(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).
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
12
(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.
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
Percentage of
ownership
December
31, 2022
100%
December
31, 2021
Description
100% Panpal held 31,648
thousand shares of the
Company as of December
31, 2022, which represented
0.7% of the Company’s
outstanding shares.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
13
Name of
investor
Name of Subsidiary
The Company Gempal Technology Corp.
(“Gempal”)
Nature of Operation
〃
Percentage of
ownership
December
31, 2022
100%
December
31, 2021
Description
100% Gempal held 18,369
thousand shares of the
Company as of December
31, 2022, which represented
0.4% of the Company’s
outstanding shares.
Hong Ji Capital Co., Ltd.
Investment
100%
100%
〃
〃
The Company,
Panpal, et al.
(“Hong Ji”)
Hong Jin Investment Co.,
Ltd. (“Hong Jin”)
Arcadyan Technology
Corp. (“Arcadyan”)
The Company
Rayonnant Technology
〃
100%
100%
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 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
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
33%
34% The Group had the ability to
control Arcadyan. (Note 1)
100%
100%
100%
100%
100%
100%
53%
53%
50%
50%
100%
100%
91%
91%
100%
100%
52%
52%
70%
70% Kinpo&Compal Group was
established in December
2021.
Investing and developing businesses,
such as public construction and specific
zones
100%
-
Compal Ruifang was
established in June 2022.
Medical care IOT business
100%
100%
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”)
Shennona Taiwan Co., Ltd.
(“Shennona TW”)
Aco Smartcare Co., Ltd.
(“Aco Smartcare”)
Kinpo&Compal Group
Assets Development
Corporation (“Kinpo&
Compal Group”)
Compal Ruifang Health
Assets Development
Corporation (“Compal
Ruifang ”)
Shennona Corporation
(“Shennona”)
Auscom Engineering Inc.
(“Auscom”)
R&D of notebook PC related products
and components
100%
100%
(Continued)
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
14
Description
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
〃
〃
〃
〃
The Company
and BSH
The Company
〃
〃
〃
〃
〃
Panpal and
Gempal
Name of
investor
The Company
Name of Subsidiary
Nature of Operation
Just International Ltd.
Investment
(“Just”)
Compal International
Holding Co., Ltd.
(“CIH”)
Compal Electronics
(Holding) Ltd. (“CEH”)
〃
〃
Bizcom Electronics, Inc.
(“Bizcom”)
Flight Global Holding Inc.
Warranty services and marketing of
monitors and notebook PCs
Investment
(“FGH”)
Percentage of
ownership
December
31, 2022
December
31, 2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
High Shine Industrial Corp.
〃
100%
100%
(“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”)
Maintenance and warranty services of
notebook PCs
Investment
〃
〃
〃
Maintenance and warranty services of
notebook PCs
Manufacturing of notebook PCs
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
〃
Compal Electronics India
Private Limited
(“CEIN”)
Manufacturing and warranty service of
mobile phones
100%
100%
Panpal and CEB Compal Electronica DA
Manufacturing of notebook PCs
100%
100%
Amazonia Ltda. (“CEA”)
Compal Display Holding
Investment
〃
〃
100%
100%
100%
100%
100%
100%
Just
〃
〃
CDH (HK)
〃
〃
(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”)
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%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
15
Name of Subsidiary
Compal Smart Device
(Chongqing) Co., Ltd.
(“CSD”)
Smart International
Trading Ltd. (“Smart”)
Amexcom Electronics Inc.
(“AEI”)
Nature of Operation
Research, manufacturing and sales of
communication devices, mobile phones,
electronic computer, smart watch, and
providing related technical service
Investment
Percentage of
ownership
December
31, 2022
December
31, 2021
100%
100%
Description
100%
100%
Sales and maintenance of LCD TVs
100%
100% The Company had decided
its dissolution and
liquidation on December 26,
2022.
Mexcom Electronics, LLC
Investment
〃
〃
〃
〃
〃
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Manufacturing of notebook PCs
100%
100%
〃
〃
〃
Manufacturing and sales of notebook
PCs, mobile phones, and digital products
100%
100%
100%
100%
100%
100%
100%
100%
Maintenance and warranty service of
notebook PCs
Investment
100%
100%
100%
100%
Manufacturing and sales of LCD TVs
100%
100%
Investment
100%
100%
(Continued)
Name of
investor
CPC
CII
〃
〃
〃
CIH
〃
〃
〃
CIH (HK)
〃
〃
〃
〃
BT
CDH (HK)
and CIH (HK)
CIJ
The Company
and Webtek
(“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”)
Compal 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.,
Ltd. (“Etrade”)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
16
Name of
investor
Name of Subsidiary
The Company Webtek Technology Co.,
Ltd. (“Webtek”)
Nature of Operation
〃
Percentage of
ownership
December
31, 2022
December
31, 2021
100%
100%
Description
〃
Forever Young Technology
〃
100%
100%
〃
〃
Inc. (“Forever”)
UniCom Global, Inc.
(“UCGI”)
Palcom International
Corporation (“Palcom”)
Poindus Systems Corp,
Ltd. (“Poindus Systems”)
Poindus Systems Poindus Investment Co.,
〃
Manufacturing and sales of computers
and electronic components
Sales of mobile phones
100%
100%
100%
100%
Sales of PCs and computer periphery
devices
Investment holding
56%
100%
Ltd. (“Poindus
Investment”)
〃
〃
〃
Poindus
Investment
QiJie Electronics
(ShenZhen) Co., Ltd.
(“QiJie”)
Sales of PCs and computer periphery
devices
Poindus Systems UK
Limited (“Poindus UK”)
Adasys GmbH
Elektronische
Komponenten (“Adasys”)
Poindus Systems GmbH
GroBhandel mit EDV.
Oberursel (“Poindus
GmbH”)
〃
〃
〃
100%
100%
100%
100%
-
-
-
-
-
-
The Group acquired 56% of
its shares in March 2022.
The Group indirectly
acquired 100% of its shares
after acquiring 56% of
Poindus Systems’ shares in
March 2022.
The Company had decided
its dissolution and
liquidation on December
22, 2022.
The Group indirectly
acquired 100% of its shares
after acquiring 56% of
Poindus Systems’ shares in
March 2022.
〃
〃
The Group indirectly
acquired 100% of its shares
after acquiring 56% of
Poindus Systems’ shares in
March 2022.
The Company had decided
its dissolution and
liquidation on December
22, 2022.
CDH (HK) and
Etrade
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”)
Manufacturing and processing of mobile
phones and tablet PCs
100%
100%
〃
〃
100%
100%
100%
100%
R&D and manufacturing of electronic
communication equipment
100%
100%
〃
Giant Rank Trading Ltd.
Sales of mobile phones
100%
100%
(“GIA”)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
17
Name of
investor
Forever
Name of Subsidiary
Compal Wise Electronic
(Vietnam) Co., Ltd.
(“CWV”)
Arcadyan
Arcadyan Technology N.A.
Nature of Operation
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
Percentage of
ownership
December
31, 2022
December
31, 2021
100%
100%
Description
100%
100%
Corp. (“Arcadyan
USA”)
Arcadyan Germany
Technology GmbH
(“Arcadyan Germany”)
Arcadyan Technology
Corporation Korea
(“Arcadyan Korea”)
Arcadyan Holding (BVI)
Corp. (“Arcadyan
Holding”)
Arcadyan Technology
Limited (“Arcadyan
UK”)
Arcadyan Technology
Australia Pty Ltd.
(“Arcadyan AU”)
Arcadyan Technology
Corporation (Russia),
LLC. (“Arcadyan RU”)
Zhi-Bao Technology Inc.
(“Zhi-Bao”)
Tatung Technology Inc.
(“TTI”)
AcBel Telecom Inc.
(“AcBel Telecom”)
〃
〃
〃
〃
〃
〃
〃
〃
〃
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
R&D and sales of household digital
electronic products
Investment
100%
100%
61%
61%
-
51% The liquidation of the
company had been
completed on August 19,
2022.
Arcadyan and
Zhi-Bao
〃
Arcadyan do Brasil Ltda.
(“Arcadyan Brasil”)
Arcadyan India Private
Limited (“Arcadyan India”)
Sales of wireless network products
100%
100%
Sales of wireless network products
100%
100% The subsidiary was
incorporated on March 25,
2021.
The Company,
Arcadyan and its
subsidiaries
CBN
Compal Broadband
Network Inc. (“CBN”)
Compal Broadband
Networks Belgium
BVBA (“CBNB”)
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
63%
62%
100%
100%
〃
Compal Broadband
〃
100%
100%
Networks Netherlands
B.V. (“CBNN”)
The Company
and CBN
Starmems Semiconductor
Corp. (“Starmems”)
R&D of MEMS technology of
manufacturing process of semiconductor
and manufacturing of electronic
components
45%
45% The subsidiary was
incorporated in April, 2021
and the Group has
substantial control over it.
(Note 1)
(Continued)
18
Description
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Name of Subsidiary
Nature of Operation
Name of
investor
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
〃
Rayonnant
Technology
(HK)
HengHao
Exquisite Electronic Co.,
Ltd. (“Exquisite”)
Tatung Home Appliances
(Wujiang) Co., Ltd.
(“THAC”)
Intelligent Universal
Enterprise Ltd. (“IUE”)
Goal Reach Enterprises
Ltd. (“Goal”)
Compal (Vietnam) Co.,
Ltd. (“CVC”)
Compal Development &
Management (Vietnam)
Co., Ltd. (“CDM”)
Allied Power Holding
Corp. (“APH”)
Primetek Enterprises
Limited (“PEL”)
Rayonnant Technology
(HK) Co., Ltd.
(“Rayonnant
Technology (HK)”)
Rayonnant Technology
(Taicang) Co., Ltd.
(“Rayonnant
Technology (Taicang)”)
HengHao Holdings A Co.,
Ltd. (“HHA”)
Percentage of
ownership
December
31, 2022
December
31, 2021
100%
100%
100%
100%
100%
100%
100%
100%
Investment
R&D and sales of wireless network
products
Investment
Manufacturing of wireless network
products
Manufacturing of wireless network
products
100%
100%
Investment
Sales of household digital electronic
products
Investment
Manufacturing of household digital
electronic products
100%
100%
100%
100%
100%
100%
100%
100%
Investment
100%
100%
〃
100%
100%
R&D, manufacturing, sales, and
maintenance of notebook PCs, computer
monitors, LCD TVs and electronic
components
Construction of and investment in
infrastructure in Ba-Thien industrial
district of Vietnam
Investment
〃
〃
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Manufacturing and sales of aluminum
alloy and magnesium alloy products
100%
100%
Investment
100%
100%
HHA
HengHao Holdings B Co.,
〃
100%
100%
Ltd. (“HHB”)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
19
Name of
investor
HHB
〃
BCI
〃
CMI
PRI
CIS
〃
CORE
BSH
〃
Nature of Operation
Production of touch panels and related
components
Percentage of
ownership
December
31, 2022
December
31, 2021
100%
100%
Description
Manufacturing of touch panels and LCD
TVs
100%
100%
Investment
100%
100%
〃
100%
100%
Outward investment and consulting
services
R&D, manufacturing and sales of
notebook PCs, related components,
related maintenance and warranty
services
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
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
〃
99%
99%
Name of Subsidiary
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”)
Billion Sea Holdings
Limited (“BSH”)
Mithera Capital Io LP
(“Mithera”)
Compal USA (Indiana),
Inc. (“CIN”)
Foundry of automotive electronic
products
100%
100% The Group acquired 100%
of its shares in September
2021.
Unicore
Raycore Biotech Co., Ltd.
Animal medication retail and wholesale
-
100% Raycore was merged with
(“Raycore”)
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 indications that
there is an agreement among the other shareholders to make collective decisions, so the Group treats the company as a subsidiary.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
20
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.
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
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
21
(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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
22
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.
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 distribation.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
23
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.
Loss allowance for trade receivables and contract assets are always measured at an
amount equal to lifetime ECL.
Lifetime ECLs are the ECLs that result from all possible default events over the expected
life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 month after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual
period over which the Group is exposed to credit risk.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
24
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;
•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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
25
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
26
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
27
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
28
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
29
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
(ie joint ventures) have rights to the net assets of the arrangement. A joint venture shall recognize its
interest in a joint venture as an investment and shall account for that investment using the equity
method in accordance with IAS 28 “Investments in Associates and Joint Ventures”, unless, the entity
is exempted from applying the equity method as specified in that Standard.
When assessing the classification of a joint arrangement, the Group shall consider the structure and
legal form of the arrangement, the terms in the contractual arrangement and other facts and
circumstances. The Group had previously reviewed the contractual structure of the joint
arrangement, and has now decided to reclassify the investments in “Jointly Controlled Entities” to
“Joint Ventures”. Although the investments have been reclassified, they are still recorded under the
equity method. Thus, there is no effect in the recognized assets, liabilities and other comprehensive
income.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
30
(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
31
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.
(i) 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
32
－ 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.
(ii) 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
33
(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
34
(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
35
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
36
(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
37
(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
38
(s)
Share-based payment
The grant-date fair value of share-based payment awards granted to employee is recognized as
employee expenses, with a corresponding increase in equity, over the period that the employees
become unconditionally entitled to the awards. The amount recognized as an expense is adjusted to
reflect the number of awards which the related service and non-market performance conditions are
expected to be met, such that the amount ultimately recognized as an expense is based on the number
of award that meet the related service and non-market performance conditions at the vesting date.
For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-
based payment is measured to reflect such conditions, and there is no true-up for differences
between expected and actual outcomes.
(t)
Income taxes
Income tax expenses include both current taxes and deferred taxes. Except for expenses related to
business combinations or recognized directly in equity or other comprehensive income, all current
and deferred taxes shall be recognized in profit or loss.
Current taxes include tax payables and tax deduction receivables on taxable gains (losses) for the
year calculated using the statutory tax rate on the reporting date or the actual legislative tax rate, as
well as tax adjustments related to prior years.
Deferred taxes arise due to temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases. Deferred taxes shall not be
recognized for the following exceptions:
(i) Assets and liabilities that are initially recognized but are not related to the business
combination and have no effect on net income or taxable gains (losses) during the transaction.
(ii) Temporary differences arising from equity investments in subsidiaries or joint ventures where
there is a high probability that such temporary differences will not reverse.
(iii)
Initial recognition of goodwill.
Deferred tax assets and liabilities shall be measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled based on tax rates that have been enacted
or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities may be offset against each other if the following criteria are met:
(i)
The entity has the legal right to settle tax assets and liabilities on a net basis; and
(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
39
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
40
(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 and 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:
In preparing these consolidated financial statements, management has made 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
41
(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)(g) 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
Cash equivalents
December
31, 2022
December
31, 2021
$
17,835
18,472
39,976,385
17,073,664
35,233,038
58,069,967
4,438,044
-
$
79,665,302
75,162,103
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
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, 2022
December
31, 2021
$
$
$
$
117,150
441,759
187
-
559,096
187
558,909
559,096
137,540
399,550
120,897
2,545
660,532
400,754
259,778
660,532
December
31, 2022
December
31, 2021
Financial liabilities held-for-trading:
Derivative instruments not used for hedging
Foreign exchange contracts
$
62,527
1,589
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
42
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, 2022
Contract amount
(in thousands)
Currency
Maturity date
Derivative financial assets:
Foreign exchange contracts:
Forward exchange sold
Forward exchange purchased
Derivative financial liabilities:
Foreign exchange contracts:
EUR
USD
8,000
512
EUR to USD May 12~ June 14, 2023
USD to INR
January 31, 2023
Forward exchange sold
EUR 25,000
EUR to USD January 31~ April 20, 2023
Forward exchange sold
EUR
2,000
EUR to TWD January 31, 2023
Forward exchange purchased
USD 172,800
USD to BRL
January 4~June 15, 2023
December 31, 2021
Contract amount
(in thousands)
Currency
Maturity date
Derivative financial assets:
Foreign exchange contracts:
Forward exchange sold
Forward exchange sold
Forward exchange purchased
EUR 33,000
EUR 1,500
USD181,700
EUR to USD January 10~May 09, 2022
EUR to TWD January 05, 2022
USD to BRL
January 05~June 20, 2022
Swap contracts:
Currency swap
Derivative financial liabilities:
Foreign exchange contracts:
USD 21,000
USD to TWD February 14~March 14, 2022
Forward exchange purchased
Forward exchange sold
USD 5,000
EUR 7,000
USD to CNY January 26, 2022
EUR to USD February 18~March 04, 2022
The market risk related to the financial instruments please refer to note (6)(aa).
As of December 31, 2022 and 2021, the Group did not provide any aforementioned financial assets
as collaterals for its loans.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
43
(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, 2022
December
31, 2021
$
$
2,797,667
579,341
1,822,164
226,736
5,425,908
3,350,210
695,728
1,879,166
309,959
6,235,063
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 the 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. The proceed from the liquidation was $1,172, resulting in a
cumulative valuation loss of $157,150, which was reclassified from other comprehensive income to
retained earnings.
During 2022, the Group has sold all of its shareholdings, measured at fair value through other
comprehensive income, in GENKI SANGA HOLDINGS CO., LTD. The fair value of the shares
upon disposal amounted to $10,028, resulting in a cumulative gain of $2,838, 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, 2022 and 2021, will be $271,295 and $311,753, 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, 2022 and 2021, 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
44
(d)
Financial instruments used for hedging
(i)
Financial instruments used for hedging were as follows:
Cash flow hedge:
Financial liabilities used for hedging:
Forward exchange contracts
(ii) Cash flow hedge
December
31, 2022
December
31, 2021
$
47,809
-
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, 2022, the details related to the items designated as hedge instruments were
as follows:
December 31, 2022
Contract amount
(in thousands)
Currency
Maturity period
Average
strike price
Derivative financial
liabilities used for
hedging
Foreign exchange
contracts:
Forward exchange
sold
EUR 65,000
EUR to USD January 30~December
28, 2023
1.0472
(iii) For the year ended December 31, 2022 and 2021, the ineffective portion of cash flow hedge
recognized in profits (losses) amounted of $44,071 and $0, respectively, recorded as “ other
gains and losses, net”.
(iv) For the year ended December 31, 2022 and 2021, the profits (losses) of changes in fair value of
derivative financial instruments used for hedging reclassified from other equity to profit or loss
are 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
45
(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, 2022
$
10,645
179,043,536
December
31, 2021
81,244
261,179,612
16,091,084
195,145,265
(3,924,544)
$ 191,220,721
$ 186,804,648
4,416,073
$
32,796,946
294,057,802
(3,891,948)
290,165,854
288,436,522
1,729,332
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, 2022
Carrying
amount of notes
and accounts
receivable
$
$
168,144,302
12,364,116
3,795,534
184,303,952
Weighted-
average
ECL rate
0%
0.68%
100%
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%
Credit rating
Level A
Level B
Level C
Credit rating
Level A
Level B
Level C
Lifetime ECLs
-
84,412
3,795,534
3,879,946
Lifetime ECLs
-
68,262
3,795,534
3,863,796
Credit-
impaired
No
No
Yes
Credit-
impaired
No
No
Yes
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
46
(ii) The loss allowance provision of strategically integrated product segment of the Group was
determined as follows:
December 31, 2022
Carrying
amount of notes
and accounts
receivable
$
$
2,524,744
6,876,702
1,419,845
-
20,022
10,841,313
Weighted-
average
ECL rate
0%
0.10%
1.00%
100%
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%
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
-
-
6,923
17,653
20,022
44,598
Lifetime ECLs
-
4,913
5,192
-
18,047
28,152
Credit-
impaired
No
No
No
-
Yes
Credit-
impaired
No
No
No
-
Yes
The aging analysis of notes and accounts receivable’s overdue was determined as follows:
Overdue 1 to 180 days
Overdue 181 to 365 days
Overdue 365 days
December
31, 2022
December
31, 2021
$
3,119,372
1,338,940
-
7,679
8,552
-
$
3,127,924
1,346,619
The movement in the allowance for notes and accounts receivable was as follows:
Balance at January 1
Acquisition through business combination
Impairment losses recognized (reversed)
Effect of changes in exchange rates
2022
3,891,948
$
2021
3,910,928
59
30,394
2,143
-
(18,227)
(753)
Balance at December 31
$
3,924,544
3,891,948
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
47
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,
2022 and 2021, 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 1,000
thousand, USD 1,600,000 thousand and EUR 15,000 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, 2022 and 2021, the factored accounts receivable with no advance
amounting to $447 and $958, respectively, were 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 Group to repurchase the accounts receivable. Thus, this is a non-recourse
accounts receivable transfer. As of December 31, 2022 and 2021, accounts receivable factored were
recovered and derecognized since the conditions of derecognition were met.
As of December 31, 2022 and 2021, the details of the factored accounts receivable but unsettled
were as follows:
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 30,114,458
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 33,594,209
December 31, 2022
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivable
Amount
Collateral
derecognized Interest rate
-
30,114,011
447
-
30,114,458 2.75%~5.61%
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%
As of December 31, 2022 and 2021, the Group did not provide any aforementioned notes and
accounts receivable as collaterals.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
48
(f)
Inventories
Finished goods
Work in progress
Raw materials
Raw materials in transit
December
31, 2022
42,519,903
$
December
31, 2021
22,625,832
11,680,487
9,683,904
56,764,510
82,224,084
629,084
478,545
$ 111,593,984
115,012,365
(i)
For the years ended December 31, 2022 and 2021, inventory cost recognized as cost of sales
amounted to $1,032,881,736 and $1,194,190,441, respectively.
(ii) The loss due to the write-down of inventories to net realizable value amounted to $1,992,685
and $1,938,800 for the years ended December 31, 2022 and 2021, respectively.
(iii) As of December 31, 2022, the Group provided part of its inventories as collaterals for its short-
term borrowings. Please refer to note (8). As of December 31, 2021, 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, 2022
December
31, 2021
$
8,142,707
8,453,133
(18,066)
(17,587)
8,124,641
8,435,546
43,757
43,020
(120,829)
(109,254)
$
8,047,569
8,369,312
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, 2022
December
31, 2021
$
$
1,741,281
1,214,819
2,956,100
2,847,809
849,180
3,696,989
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
49
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
2022
(270,373)
$
2021
448,467
3)
The Group’s financial information for investments accounted for using the equity method
that are individually immaterial was as follows:
December
31, 2022
December
31, 2021
Carrying amount of individually immaterial associates
$
8,142,707
8,453,133
The Group’s share of the net income (loss) of associates:
Profit (loss) from continuing operations
Other comprehensive income
Total comprehensive income
2022
2021
(270,373)
60,255
$
(210,118)
448,467
110,379
558,846
(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, 2022
December
31, 2021
The carrying amount of the Group’s interests in all
individually insignificant joint ventures
$
(18,066)
(17,587)
The Group’s share of the net income (loss) of joint ventures:
Net income (losses) from continuing operations
(also the total comprehensive income (losses))
2022
2021
(2,451)
95
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
50
(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, 2022 and 2021, the Group did not provide any investments accounted for
using equity method as collaterals for its loans.
(h) Acquisition of the subsidiary
(i)
Poindus Systems
In order to accelerate the deployment in the industrial PCs market, the Group made a tender
offer for 56% ownership of Poindus Systems Corp, Ltd. (“Poindus Systems”) at a total price of
$353,046. The aforementioned price was paid, and the settlement had been completed.
Since the acquisition of 56% ownership in Poindus Systems on March 7, 2022, the revenue and
net profit contributed by Poindus Systems were $618,366 and loss $2,134, respectively. If the
transaction took place on January 1, 2022, the management estimates that the Group’s revenue
in 2022 would increase by $147,469, while net profit will increase by $6,550. In determining
these amounts, management has assumed that the transaction occurred on January 1, 2022, and
that the provisional fair value adjustments resulting from the acquisition date are the same.
The main categories of consideration transfer, assets acquired and liabilities assumed on the
acquisition date and the amount of goodwill recognized are as follows:
1)
Consideration transferred
Cash
$
353,046
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
51
2)
The identifiable assets acquired and the liabilities assumed
The fair value 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
Right-of-use assets
Intangible assets
Deferred tax assets
Other non-current assets
Short-term borrowings
Notes and accounts payable
Other payables
Current tax liabilities
Provisions
Other current liabilities
Current and non-current lease liabilities
Deferred tax liabilities
Net defined benefit liabilities
3)
Goodwill arising from the acquisition of 56% ownership is as follows:
Consideration transferred
Non-controlling interests
Less: fair value of identifiable net assets
$
$
$
$
217,075
114,308
4,874
342,673
35,077
21,591
37,258
19,160
18,495
2,099
(268)
(141,704)
(31,099)
(10,642)
(2,786)
(5,162)
(37,542)
(1,658)
(17,881)
563,868
353,046
247,882
(563,868)
37,060
Goodwill is mainly derived from the business value of Poindus Systems in the industrial
PCs market. It is expected that the business of Poindus System and the Group business
will be integrated to generate synergy.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
52
(ii) CIN
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:
1)
Consideration transferred
cash
$
226,421
2)
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
$
$
29,419
130,003
29,994
211,240
3,798
93,373
(158,743)
(124,352)
(27,525)
187,207
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
53
3)
Goodwill arising from the acquisition of 100% equity is as follows:
Consideration transferred
Less: fair value of identifiable net assets
$
$
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 new shares because of its employees' exercised stock options in
2021, which resulted in the reduce of the Group’ s ownership of CBN by 0.02%,
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%.
4)
Cancellation of subsidiaries’ restricted shares and conversion of convertible bonds
Arcadyan canceled 30 thousand and 53 thousand restricted shares in the years ended
December 31, 2022 and 2021. Whereas, Arcadyan issued 3,892 thousand and 8,136
thousand new shares due to the conversion of convertible bonds during 2022 and 2021.
These two events, respectively, resulted in a decrease of 0.59% and 1.30% the ownership
of the Company and its subsidiaries in Arcadyan in the years ended December 31, 2022
and 2021.
CBN canceled 469 thousand restricted shares in the years ended December 31, 2022,
resulted in a increase of 0.43% the ownership of the Group in CBN in the years ended
December 31, 2022.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
54
5)
Acquire additional equity in a subsidiary
In June 2022, the Group acquired 0.12% of equity interest in GLB from minority
shareholders with $700 in cash, increasing of the equity from 50.00% to 50.12%.
In August 2021, the Group acquired 49% of equity interest in Raycore Biotech from
minority shareholders with $15,129 in cash, increasing of the 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
2022
2021
$
$
33,397
(2,260)
31,137
61,825
(11,237)
50,588
(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, 2021
31, 2022
%67
%66
The following information of the aforementioned subsidiaries have been prepared in accordance
with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Included
in these information are the fair value adjustment made during the acquisition and relevant
difference in accounting principles between the Group as at the acquisition date. Intra-group
transactions were not eliminated in this information.
Arcadyan’s collective financial information
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Non-controlling interests
December
31, 2022
33,543,752
$
December
31, 2021
28,532,932
6,476,775
5,368,181
(25,841,325)
(20,476,963)
(239,941)
(501,037)
$
$
13,939,261
12,923,113
9,503,906
8,796,235
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
55
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
$
$
$
$
$
$
2022
2021
47,167,749
38,240,058
1,915,053
1,701,800
283,981
(77,222)
2,199,034
1,624,578
1,248,748
1,083,011
1,435,919
1,032,457
2,529,050
(1,524,264)
(1,415,888)
(1,789,637)
(1,577,423)
2,240,204
Effect of exchange rate changes on cash and cash equivalents
73,033
(35,292)
Net increase (decrease) in cash and cash equivalents
$
(391,228)
(1,108,989)
(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, 2022 and 2021, 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, 2022
$
2,476,919
17,383,799
32,006,068
11,743,420
4,593,482
68,203,688
Acquisition through business combination
Additions
Disposals and derecognitions
Reclassifications
-
-
-
-
356
94,356
274
94,986
340
49,023
1,940,684
2,047,295
2,057,259
6,094,601
(89,464)
(386,369)
(1,186,876)
-
(1,662,709)
Effect of movements in exchange rates
8,459
1,289,824
1,181,719
3,025,276
1,491,632
152,137
554,985
(4,669,045)
-
313,732
3,348,719
Balance on December 31, 2022
Balance on January 1, 2021
$
$
Acquisition through business combination
Additions
2,485,718
21,658,458
36,234,090
13,405,317
2,295,702
76,079,285
1,944,094
18,519,873
28,498,191
11,885,697
1,220,785
62,068,640
10,892
479,377
87,477
162,654
4,376
-
265,399
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)
56
Total
41,213,324
73,395
6,130,845
(1,483,981)
1,337,491
47,271,074
39,983,300
172,026
5,437,426
404,513
(2,444,697)
(2,339,244)
41,213,324
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Buildings
and building
improvement Machinery
Other
equipment
Land
Under
construction
and
prepayment
for purchase of
equipment
-
-
-
-
-
-
-
-
-
-
-
-
-
10,989,522
21,254,150
8,969,652
-
356
73,039
942,521
3,411,902
1,776,422
(89,237)
(269,897)
(1,124,847)
713,151
150,183
474,157
12,555,957
24,546,694
10,168,423
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
-
-
-
-
-
-
-
-
-
-
-
-
-
Depreciation and impairments loss:
Balance on January 1, 2022
Acquisition through business combination
Depreciation for the period
Disposals and derecognitions
Effect of movements in exchange rates
Balance on December 31, 2022
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
Carrying amounts:
Balance on December 31, 2022
Balance on January 1, 2021
Balance on December 31, 2021
$
$
$
$
$
$
$
2,485,718
9,102,501
11,687,396
3,236,894
2,295,702
28,808,211
1,944,094
7,664,764
7,926,546
3,329,151
1,220,785
22,085,340
2,476,919
6,394,277
10,751,918
2,773,768
4,593,482
26,990,364
As of December 31, 2022 and 2021, 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 subsidiary of the Group, CDE, and a non-related
party, Kunshan Xincheng Construction Development Co., Ltd., entered into a real estate purchase
and sales agreement at the total price of $4,147,946 (CNY 956,012 thousand), which include the
land use rights and the existing land building, based on a resolution approved during the board
meeting held on May 7, 2021. Upon completion of 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 September 2021, the Group carried out the impairment test toward the partial production lines in
Henghao Technology 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
57
(l)
Right-of-use assets
The Group leases many assets including land and buildings, machinery and vehicles. Information
about leases for which the Group as a lessee is presented as below:
Land
Buildings Machinery
Vehicles
and other
Total
Cost:
Balance on January 1, 2022
Acquisition through business combination
Additions
Deductions
Effect of movements in exchange rates
Balance on December 31, 2022
Balance on January 1, 2021
Additions
Deductions
Effect of movements in exchange rates
Balance on December 31, 2021
Depreciation:
Balance on January 1, 2022
Acquisition through business combination
Depreciation for the period
Deductions
Effect of movements in exchange rates
Balance on December 31, 2022
Balance on January 1, 2021
Depreciation for the period
Deductions
Effect of movements in exchange rates
Balance on December 31, 2021
Carrying amount:
Balance on December 31, 2022
Balance on January 1, 2021
Balance on December 31, 2021
$
859,993
3,664,030
-
11,216,024
-
104,834
$ 12,180,851
1,268,129
$
-
(362,689)
(45,447)
859,993
39,959
299,827
(630,668)
(52,921)
3,320,227
3,378,467
996,820
(679,921)
(31,336)
3,664,030
69,655
1,458,825
-
151,927
-
19,481
241,063
54,756
52,675
(37,698)
(78)
69,655
3,823
799,367
(523,734)
(125,053)
1,613,228
1,175,689
805,895
(512,348)
(10,411)
1,458,825
$
$
$
$
$
$ 11,939,788
1,213,373
$
790,338
$
1,706,999
2,202,778
2,205,205
76,602
-
33,423
(57,348)
(1,573)
51,104
76,930
-
-
(328)
76,602
36,900
-
10,019
(27,382)
(1,444)
18,093
24,749
12,326
-
(175)
36,900
33,011
52,181
39,702
68,622
4,669,247
1,332
14,525
(9,818)
(2,108)
72,553
74,969
22,824
(28,923)
(248)
68,622
41,291
11,563,799
(697,834)
48,232
15,624,735
4,798,495
1,019,644
(1,071,533)
(77,359)
4,669,247
37,649
1,603,029
210
21,042
(9,635)
(2,231)
47,035
46,349
20,421
(28,923)
(198)
37,649
4,033
982,355
(560,751)
(109,247)
1,919,419
1,301,543
891,317
(578,969)
(10,862)
1,603,029
25,518
28,620
30,973
13,705,316
3,496,952
3,066,218
In January 2022, the Group signed a contract with the Taipei City Government to obtain the
superficies of No.91, Ruan Qiao Section, Beitou District, Taipei City, which has a term of 50 years
and may be extended for additional 20 years. The registration procedures had been completed in
May 2022, and the right-of-use assets and lease liabilities were recognized on the commencement
date of the lease.
The related depreciation expenses of right-of-use assets and interest expenses of lease liabilities had
met the conditions for capitalization and were included as the cost of assets. The above-mentioned
depreciation expenses and interest expenses amounted to $130,854 and $26,049, respectively, and
were capitalized under property, plant and equipment for the year ended December 31, 2022, with a
capitalization rate of 1.5%.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
58
(m) Short-term borrowings
The details of short-term borrowings were as follows:
Unsecured bank loans
Secured bank loans
Unused credit line for short-term borrowings
Range of interest rates
December
31, 2022
74,823,426
December
31, 2021
118,422,407
9,000
-
74,832,426
118,422,407
$
$
$ 212,701,000
113,777,000
0.05%~8.37% 0.05%~2.95%
For information on the Group’s interest risk, foreign currency risk and liquidity risk, please refer to
note (6)(aa).
For the collaterals for part of the Group’s borrowings, please refer to note (8).
(n) Long-term borrowings
The details of long-term borrowings were as follows:
Unsecured bank loans
Currency
TWD
Annual range of
interest rate
1.48%~2.06%
Secured bank loans
TWD
1.25%~2.00%
Maturity year
2023~2026
2025~2026
December 31, 2022
Less: current portion
Total
Unused credit lines for
long-term borrowings
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
Amount
30,525,000
612,122
(19,462,800)
11,674,322
13,018,000
Amount
24,300,000
660,513
(15,741,481)
9,219,032
12,345,000
$
$
$
$
$
$
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
59
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
Repayments of bonds payable
Balance of corporate bonds payable as of the reporting date
Conversion options included in equity components (classified
as capital surplus and non-controlling interests)
Interest expenses
December
31, 2022
December
31, 2021
$
1,000,000
1,000,000
-
-
(1,433)
(496)
(992,600)
(671,500)
(7,400)
-
-
-
326,571
15,987
2022
763
2021
11,968
$
$
$
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;
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
60
- 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 above-mentioned convertible corporate bonds were due on June 6, 2022, and the
remaining unconverted corporate bonds were fully repaid by the Group in cash at the par value
of $7,400 on maturity in accordance with the conversion terms.
(iv) As of June 6, 2022 and December 31, 2021, the convertible corporate bonds were converted
into ordinary shares of Arcadyan for $321,100 and $671,500 with a par value of $38,920 and
$81,363, respectively, and the capital surplus were recognized for $296,640 and $616,933
(including the stock option conversion premium of $15,626 and $32,680 and the unamortized
discounts on corporate bonds payable of $1,166 and $5,884, respectively).
(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, 2022
$
$
1,813,555
9,533,209
December
31, 2021
625,292
1,679,504
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
2022
2021
44,563
63,701
2,528
32,350
186,825
303,454
$
$
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
61
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
2022
2,656,206
$
2021
1,234,542
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. The Group obtained the superficies of Beitou District, Taipei City in May 2022, please
refer to note (6)(l).
(ii) Other leases
The Group leases vehicles and equipment with lease terms of 1~5 years.
The Group also leases some office space, 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.
(q)
Provisions
Balance on January 1, 2022
Business combination
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Effect of movements in exchange rates
Balance on December 31, 2022
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
Warranties
1,204,115
$
2,786
365,410
(349,378)
(488,899)
27
734,061
870,050
476,940
(136,853)
(6,022)
$
$
$
1,204,115
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
62
(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, 2022
(1,433,878)
December
31, 2021
(1,554,902)
773,859
732,869
(660,019)
(822,033)
$
$
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.
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 $757,556 (excluding the ending balance of interest rectivable) as of
December 31, 2022. 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
$
(1,554,902)
2022
Benefit paid by the plan
Current service costs and interest
Remeasurements of net benefit liabilities
Amount increased through business
combination
Effect of movements in exchange rates
64,567
(16,068)
106,275
(32,306)
(1,444)
2021
(1,516,219)
38,959
(12,850)
(64,792)
-
-
Defined benefit obligations on December 31
$
(1,433,878)
(1,554,902)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
63
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:
2022
2021
Fair value of plan assets on January 1
$
732,869
Expected return on plan assets
Remeasurements of net benefit plan assets
Contributions paid by the employer
Benefits paid by the plan
Amount increased through business
combination
Effect of movements in exchange rates
Fair value of plan assets on December 31
$
4)
Expenses recognized in profit or loss
The expenses recognized in profit or loss were as follows:
5,073
56,929
28,460
(64,567)
14,425
670
773,859
730,046
3,675
9,626
28,481
(38,959)
-
-
732,869
2022
2021
Current service cost
Net interest on the net defined benefit liability
(asset)
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
$
$
$
$
4,720
6,275
10,995
516
627
2,714
7,138
10,995
5,198
3,977
9,175
547
576
2,137
5,915
9,175
5)
Actuarial assumptions
The following were the Group’s principal actuarial assumptions at the reporting date:
Discount rate
December 31,
2022
1.70%~1.75%
December 31,
2021
0.63%~0.8%
Future salary increasing rate
3.00%
3.00%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
64
The expected allocation payment made by the Group to the defined benefit plans for the
one year period after the reporting date is $28,407.
The weighted-average lifetime of the defined benefit plan is 8.1~12.98 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, 2022
Discount rate
Future salary increasing rate
December 31, 2021
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(27,794)
28,198
(34,611)
34,882
28,712
(27,427)
35,847
(33,869)
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 $486,231 and $446,148 for the years ended December 31,
2022 and 2021, 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 $1,321,190 and $1,193,098 for the years ended
December 31, 2022 and 2021, respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
65
(s)
Income taxes
(i)
Income tax expenses
1)
The amount of income tax for the years ended December 31, 2022 and 2021, was as
follows:
2022
2021
Current tax expense
Recognized during the period
$
3,388,485
5% surtax on unappropriated earnings
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary
differences
Income tax expense
171,404
(728,549)
2,831,340
4,240,078
14,627
(596,726)
3,657,979
(648,737)
$
2,182,603
69,368
3,727,347
2)
The amount of income tax recognized in other comprehensive income for the years ended
December 31, 2022 and 2021, was as follows:
2022
2021
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
Gains (losses) on hedging instrument
$
$
$
$
32,313
(11,211)
(81,430)
(49,117)
61,401
50,190
(2,464)
(9,562)
(12,026)
(17,539)
-
(17,539)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
66
3)
The income tax expense that was reconciled between the actual income tax expense and
profit before tax for the years ended December 31, 2022 and 2021, 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
2022
10,724,130
3,142,341
$
$
2021
17,467,835
4,734,068
(442,560)
(98,000)
(728,549)
503,909
(365,942)
171,404
(171,208)
(65,440)
(596,726)
(704,260)
516,286
14,627
$
2,182,603
3,727,347
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2022 and 2021 were as follows:
Refund
liabilities
Unrealized
exchange
losses, net
Loss on
inventory
valuation
Others
Total
Deferred tax assets:
Balance on January 1, 2022
$
195,296
Recognized in profit or loss
91,252
477,006
522,279
202,499
220,089
771,723
1,646,524
(84,574)
749,046
Recognized in other
comprehensive income
Acquisition of subsidiaries
-
-
Balance on December 31, 2022
$
286,548
Balance on January 1, 2021
Recognized in profit or loss
Recognized in other
134,880
60,416
-
-
999,285
655,455
(178,449)
-
-
422,588
123,270
79,229
(20,287)
18,495
685,357
600,603
142,450
(20,287)
18,495
2,393,778
1,514,208
103,646
comprehensive income
-
-
-
28,670
28,670
Balance on December 31, 2021
$
195,296
477,006
202,499
771,723
1,646,524
Deferred tax liabilities:
Balance on January 1, 2022
Recognized in profit or loss
Recognized in other comprehensive income
Acquisition of subsidiaries
Balance on December 31, 2022
Unrealized
exchange
gains, net
Others
Total
$
(504,663)
(250,368)
(722,142)
(1,226,805)
150,059
(100,309)
-
-
81,430
(1,658)
81,430
(1,658)
$
(755,031)
(492,311)
(1,247,342)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
67
Unrealized
exchange
gains, net
Others
Total
Balance on January 1, 2021
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2021
$
$
(424,990)
(79,673)
-
(567,480)
(93,341)
(61,321)
(992,470)
(173,014)
(61,321)
(504,663)
(722,142)
(1,226,805)
(iii) Unrecognized deferred tax assets
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,
2022
1,674,595
$
$
996,446
December
31, 2021
1,502,666
978,257
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 authoritie 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.
As of December 31, 2022, the tax effects on loss carryforward that have not been recognized
as deferred tax assets were as follows:
Year of loss
2013 (Assessed)
2014 (Assessed)
2015 (Assessed)
2016 (Assessed)
2017 (Assessed)
2018 (Assessed)
2019 (Assessed)
2020 (Assessed/Filed)
2020 (Filed)
2021 (Filed)
2021 (Filed)
2022 (Estimated)
2022 (Filed)
Expiry year
2023
2024
2025
2026
2027
2028
2029
2030
2025
2031
2026
2032
2027
Deductible amount
211,104
$
41,534
569,361
1,422,761
918,086
554,750
349,024
130,501
20,484
48,639
126,335
206,435
277,800
4,876,814
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
68
(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, 2022 and 2021, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $2,618,241 and
$2,335,023, respectively.
As of December 31, 2022 and 2021, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $68,023,499
and $58,082,760, respectively.
(v) Examination and approval
The Company’s tax returns for the year through 2020 were assessed by the tax authorities.
The income tax returns through 2021 and the liquidation period of Acbel Telecom have been
examined by the tax authorities. The ROC tax authorities have assessed the income tax returns
of Hong Jin and Shennona through 2021, of Hippo Screen, Zhi-Bao, UCGI, Palcom, Panpal,
Gempal, Hong Ji, Unicore, Raycore, Ripal, CBN, Mactech, GLB, Arcadyan, TTI, Poindus
Systems, Poindus Investment and Aco Healthcare through 2020, of Rayonnant Technology and
HengHao through 2019.
(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, 2022
December
31, 2021
$
1,898,477
3,660,119
2,721,968
2,621,933
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
156,072
36,766
122,675
for using equity method
265,297
283,363
$
5,078,580
6,724,856
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
69
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 held on March 15, 2022 and March 26, 2021,
approved to distribute the cash dividend of $1,762,859 and $1,762,859 (representing 0.4 and
0.4 New Taiwan Dollars per share), by using the additional paid-in capital.
The Company’ s Board of Directors meeting held on March 15, 2023, approved to distribute
the cash dividend of $881,429 (representing 0.2 New Taiwan Dollars per share), by using the
additional paid-in capital. The related information can be accessed through the Market
Observation Post System website.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
70
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. 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 2021 and 2020 was approved in the meeting of the Board
of Directors held on March 15, 2022 and March 26, 2021, respectively. The relevant
information was as follows:
2021
2020
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed
to common shareholders
$
1.6
7,051,435
1.2
5,288,576
Earnings distribution for 2022 was approved by the Board of Directors held on March
15, 2023. The relevant information was as follows:
Cash dividends distributed to common shareholders from
the unappropriated earnings
$
1.0
4,407,147
2022
Amount
per share
Total
amount
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
71
(iv) Treasury stock
The subsidiaries of the Company did not sell the ordinary shares of the Company in the years
ended December 31, 2022 and 2021. As of December 31, 2022, 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
23.05 and 24.20 New Taiwan dollars per share as of December 31, 2022 and 2021,
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.
(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
$
$
$
$
(8,744,705)
7,183,714
9,700
81,580
(1,469,711)
(6,888,977)
(1,791,462)
(38,894)
(25,372)
(8,744,705)
537,830
(590,539)
(420,019)
11,625
(461,103)
(376,952)
567,871
160,972
185,939
537,830
Others
Total
-
-
-
-
125
(12,415)
(8,206,750)
6,593,175
(422,734)
93,205
(12,290)
(1,943,104)
(779)
904
125
(7,266,708)
(1,223,591)
122,982
160,567
(8,206,750)
Balance on January 1, 2022
The Group
Subsidiaries
Associates
Balance on December 31, 2022
Balance on January 1, 2021
The Group
Subsidiaries
Associates
Balance on December 31, 2021
(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 thousand 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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
72
3,500,000 shares of the aforementioned restricted shares are issued without consideration.
30%, 30% and 40% of the 3,500 thousand 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 thousand 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.
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:
Unit: in thousands of shares
Outstanding shares on January 1
Canceled during the period
The number vested in this period
2022
2021
1,283
(30)
(1,253)
Outstanding shares on December 31
-
2,306
(53)
(970)
1,283
As of December 31, 2022 and 2021, the unearned employee benefit was $0 and $13,030.
The compensation cost related to the restricted shares amounted to $2,396 and $32,576 for the
year ended December 31, 2022 and 2021.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
73
(ii) 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:
2022
2021
Outstanding shares on January 1
Expired during the period
Exercised during the period
Outstanding shares on December 31
Exercisable shares on December 31
Shares
-
-
-
-
-
Weighted-
average
exercise price
(NT dollars)
-
$
Weighted-
average
exercise price
(NT dollars)
10
Shares
3,000 $
-
-
-
-
-
(3,000)
-
-
10
-
-
-
The options under the aforesaid employee stock option plan have been executed in 2021.
The issuance terms of the share options are as follows.
1)
2)
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 ％
a)
b)
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 year ended December 31, 2021 was $0.
(iii) CBN- Issuance of restricted shares
On June 24, 2020, CBN issued 1,500 thousand 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
74
In addition, the base date for capital increase has been decided by the chairman of the board of
directors to be December 20, 2021, and the change registration will be 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 granted in this period
Share vested in this period
Shares canceled in this period
Outstanding shares on December 31
Unit: in thousands of shares
2022
2021
1,500
-
(365)
(469)
666
-
-
-
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, that Capital-restricted shares $31,050. Until
December 31, 2021, the balance of unearned remuneration for employees was $11,213.
The compensation cost related to the restricted shares amounted to $19,629 and $831 for the
year ended December 31, 2022 and 2021, respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
75
(v) Earnings per share
The Group’s basic and diluted earnings per share are calculated as follows:
2022
2021
Basic earnings per share:
Profit attributable to ordinary shareholders of the Company
$
7,288,292
12,632,667
Weighted-average number of outstanding ordinary shares (in
thousands)
Diluted earnings per share:
4,357,130
4,357,130
Profit attributable to ordinary shareholders of the Company (after
adjustment of potential diluted ordinary shares)
7,288,292
12,632,667
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
43,369
65,517
Weighted-average number of ordinary shares (after adjustment of
potential diluted ordinary shares) (in thousands)
4,400,499
4,422,647
(w) Revenue from contracts with customers
(i) Disaggregation of revenue
2022
Strategically
Integrated
Product
Segment
IT Product
Segment
Total
$
427,079,787
17,611,390
444,691,177
133,117,810
67,705,775
334,869
133,452,679
1,003,330
68,709,105
398,174,794
28,218,160
426,392,954
$ 1,026,078,166
47,167,749
1,073,245,915
Primary geographical markets:
United States
China
Netherlands
Others
Major products:
5C related electronics products
$ 1,021,266,892
45,809,328
1,067,076,220
Others
4,811,274
1,358,421
6,169,695
$ 1,026,078,166
47,167,749
1,073,245,915
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
76
2021
Strategically
Integrated
Product
Segment
IT Product
Segment
Total
$
477,875,378
8,487,079
486,362,457
158,629,441
86,727,156
431,844
159,061,285
1,435,217
88,162,373
474,209,982
27,885,918
502,095,900
$ 1,197,441,957
38,240,058
1,235,682,015
Primary geographical markets:
United States
China
Netherlands
Others
Major products:
5C related electronics products
$ 1,195,237,339
37,264,055
1,232,501,394
Others
(ii) Contract balances
2,204,618
976,003
3,180,621
$ 1,197,441,957
38,240,058
1,235,682,015
Notes and accounts receivable (including
related parties)
December
31, 2022
$ 195,145,265
December
31, 2021
294,057,802
January 1,
2021
236,120,826
Less: allowance for impairment
(3,924,544)
(3,891,948)
(3,910,928)
Total
Contract liabilities
$ 191,220,721
290,165,854
232,209,898
$
784,238
1,065,954
820,016
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, 2022 and 2021 that were
included in the balance of contract liability at the beginning of the period was $1,065,954 and
$820,016, respectively.
The major change in the balance of contract assets and contract liabilities is the difference
between the time frame in the performance obligation to be satisfied and the payment to be
received.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
77
(x) Employees’ and directors’ compensations
Based on the Company’ s articles of incorporation, if there is any profit in a fiscal year, the
Company’s pre-tax profits in such fiscal year, prior to deduction of compensations to employees and
directors, shall be distributed to employees as compensations in an amount of not less than two
percent (2%) thereof and to directors as compensations in an amount of not more than two percent
(2%) of such profits. In the event that the Company has accumulated losses, the Company shall
reserve an amount to offset accumulated losses. The compensations to employees as mentioned
above may be distributed in the form of stock or cash. Employees entitled to receive the said stock or
cash may include the employees of the Company’s subordinate companies pursuant to the Company
Act.
The Company accrued and recognized its employee compensation of $750,945 and $1,350,062, and
directors’ compensation of $39,790 and $71,390 for the years ended December 31, 2022 and 2021,
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 2022 and 2021.
There is no differences between the amount estimated and recognized in the financial statements in
2021. 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
2022
3,077,815
12,111
2021
2,015,709
1,605
3,089,926
2,017,314
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
78
(ii) Other income
The other incomes for the years ended December 31, 2022 and 2021, were as follows:
Dividend revenue
Other revenue
(iii) Other gains and losses
2022
2021
$
$
128,597
523,829
652,426
143,686
504,420
648,106
The other gains and losses for the years ended December 31, 2022 and 2021, were as follows:
Gains (losses) on financial assets and liabilities at fair value
through profit or loss, net
Foreign currency exchange gains (losses), net
Gains (losses) on disposal of property, plant, and equipment
Gains on disposal of investments, net
Others
2022
2021
$
(765,115)
2,121,647
7,086
2,568
(2,345)
418,827
123,742
1,969,560
-
(706)
$
1,363,841
2,511,423
(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, 2022 and 2021, 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
82,853
130,662
(47,809)
43,006
40,814
2,192
2022
2021
(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
79
2)
Receivables and debt securities
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, 2022.) 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, 2022 and 2021 were
as follows:
Balance on January 1, 2022
Impairment losses recognized (reversed)
Balance on December 31, 2022
Balance on January 1, 2021
Impairment losses recognized (reversed)
Balance on December 31, 2021
(ii) Liquidity risk
Other
receivables
$
$
$
$
2,973
(217)
2,756
2,392
581
2,973
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, 2022
Non-derivative financial liabilities
Secured borrowings
Unsecured borrowings
Lease liabilities－current and
non-current
Notes and accounts payable
Other payables
Derivative financial liabilities
$
621,122
105,348,426
(621,122)
(105,348,426)
(171,800)
(94,123,426)
(207,617)
(5,400,000)
(241,705)
(5,825,000)
11,346,764
161,838,098
29,622,760
(12,637,278)
(161,838,098)
(29,622,760)
(1,888,347)
(161,838,098)
(29,622,760)
(6,783,542)
(3,965,389)
-
-
-
-
-
-
-
-
Forward exchange contracts:
62,527
Outflow
Inflow
Forward exchange contracts used
(6,386,190)
6,176,658
(6,386,190)
6,176,658
for hedging:
Outflow
Inflow
47,809
(2,126,800)
2,090,285
(310,313,731)
(2,126,800)
2,090,285
(287,890,478)
-
-
(12,391,159)
-
-
(10,032,094)
$ 308,887,506
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
80
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
Currency swap contracts:
Outflow
Inflow
Carrying
Amount
Contractual
cash flows Within 1 year
1 ~ 2 years
Over 2 years
$
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)
1,589
(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)
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, 2022
Exchange rate
TWD
Foreign currency
December 31, 2021
Exchange rate
TWD
Financial assets
Monetary items
USD to TWD
USD to CNY
EUR to TWD
CNY to USD
Non-monetary items
THB to TWD
Financial liabilities
Monetary items
USD to TWD
USD to CNY
USD to BRL
EUR to TWD
CNY to USD
$
11,446,943
12,508
65,974
3,598,880
652,264
10,358,052
1,087
194,543
21,492
3,522,857
30.71
6.9571
32.72
0.1437
0.8882
30.71
6.9571
5.2177
32.72
0.1437
351,535,620
18,449,976
384,121
2,158,669
15,881,955
26,386
83,417
3,451,738
27.68
6.378
31.32
0.1568
510,695,336
730,364
2,612,620
14,981,316
579,341
842,184
0.8261
695,728
318,095,777
17,976,968
33,382
5,974,416
703,218
1,170
197,060
27,835
15,546,463
3,269,701
27.68
6.378
5.5805
31.32
0.1568
497,602,474
32,386
5,454,621
871,792
14,191,235
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
81
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, 2022 and 2021,
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,
2022
December 31,
2021
$
1,671,992
(1,671,992)
17,537
(17,537)
(298,721)
298,721
72,773
(72,773)
16,775
(16,775)
654,643
(654,643)
34,899
(34,899)
(272,731)
272,731
87,041
(87,041)
39,504
(39,504)
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, 2022 and 2021,
the foreign exchange gains (losses), including both realized and unrealized, amounted to
$2,121,647 and $123,742, respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
82
(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, 2022 and 2021, 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
2022
2021
$
58,941
(58,941)
1,656
(1,656)
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
83
December 31, 2022
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
Lease liabilities－current and non-current
Long-term borrowings current portion
Long-term borrowings
Deposits received
Subtotal
Total
187
558,909
559,096
2,797,667
579,341
1,822,164
226,736
16,091,084
21,516,992
79,665,302
170,713,564
4,416,073
2,369,411
803,156
828,367
969,960
259,765,833
$ 281,841,921
$
62,527
47,809
74,832,426
152,137,066
9,701,032
29,622,760
11,346,764
19,462,800
11,674,322
519,308
309,296,478
$ 309,406,814
-
-
2,797,667
579,341
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
187
-
187
-
558,909
558,909
-
-
-
-
16,091,084
-
-
-
-
-
-
-
62,527
47,809
-
-
-
-
-
-
-
-
-
-
1,822,164
226,736
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,797,667
579,341
1,822,164
226,736
16,091,084
-
-
-
-
-
-
-
62,527
47,809
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
84
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
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
123,442
537,090
660,532
3,350,210
695,728
1,879,166
309,959
32,796,946
39,032,009
75,162,103
255,639,576
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
123,442
-
123,442
277,312
259,778
537,090
-
-
-
-
32,796,946
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,589
-
-
1,879,166
309,959
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,350,210
695,728
1,879,166
309,959
32,796,946
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,589
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
85
2)
Fair value valuation technique of financial instruments not measured at fair value
The Group estimates financial instruments that not measured at fair value by methods
and assumption as follows:
a)
Financial assets and liabilities measured at amortized cost
If there is quoted price generated by transactions, the recent transaction price and
quoted price data is used as the basis for fair value measurement. However, if no
quoted prices are available, the discounted cash flows are used to estimate fair
values.
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
86
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, 2022
and 2021.
5)
Changes in level 3
The change in level 3 at fair value in the years ended December 31, 2022 and 2021, were
as follows:
Financial assets at
fair value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Total
Balance on January 1, 2022
$
259,778
2,189,125
2,448,903
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds from liquidation of
investments
Effect of changes in exchange rates
Balance on December 31, 2022
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
(23,672)
-
323,183
(380)
558,909
201,609
(405,953)
264,057
(10,028)
(2,010)
13,709
2,048,900
2,352,919
3,170
-
54,999
(335,469)
187,540
(12,249)
(3,616)
-
-
-
-
-
-
(23,672)
(405,953)
587,240
(10,028)
(2,010)
13,329
2,607,809
2,554,528
3,170
(335,469)
242,539
(12,249)
(3,616)
Balance on December 31, 2021
$
259,778
2,189,125
2,448,903
For the years ended December 31, 2022 and 2021, 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:
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
87
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”)
$
$
2022
2021
(23,672)
3,170
(409,229)
(331,801)
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)
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.
Significant
unobservable inputs
Price-Book ratio
multiples (1.54~2.89
and 1.82~11.62,
respectively, on
December 31, 2022 and
2021)
Multiples of earnings
(14.33~17.25 and
16.37~27.97,
respectively, on
December 31, 2022 and
2021)
Lack-of-Marketability
discount rate
(40%~65% and
40%~85%,
respectively, on
December 31, 2022 and
2021)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
88
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, 2022
Financial assets at fair
value through other
comprehensive
income
Move up
or down
Other comprehensive income
Unfavorable
change
Favorable
change
5%
$
8,394
11,549
December 31, 2021
Financial assets at fair
value through other
comprehensive
income
Multiples of earnings
Lack-of-Marketability
discount rate
Price-Book ratio
multiples
Multiples of earnings
Lack-of-Marketability
discount rate
5%
5%
5%
5%
5%
$
$
$
$
$
5,808
9,432
5,820
6,266
17,810
16,250
4,882
11,767
4,738
13,470
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
89
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, 2022
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts
of recognized
financial assets
(a)
Gross amounts of
financial liabilities offset
in the balance
sheet
(b)
Cash/ Short-term borrowings $
351,096,620
351,096,620
(USD
11,432,648 )
(USD 11,432,648 )
Net amount of financial
assets presented in
the balance
sheet
(c)=(a)-(b)
-
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)
Gross amounts of
financial liabilities offset
in the balance
sheet
(b)
Cash/ Short-term borrowings $
360,789,950
360,789,950
(USD
13,034,319 )
(USD 13,034,319 )
Net amount of financial
assets presented in
the balance
sheet
(c)=(a)-(b)
-
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
90
(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 analysed
individually for creditworthiness before the Group’ s standard payment and delivery
terms and conditions are offered. The Group’ s review includes external ratings, when
available, and in some cases bank references. Purchase limits are established for each
customer, and these limits are reviewed periodically.
2)
Investments
The credit risks exposure in the bank deposits, investments with fixed income and other
financial instruments are measured and monitored by the Group’ s finance department.
Since
the contractually obligated
counterparties are banks, financial institutes and corporate organizations with good
credits, there are no compliance issues, and therefore, no significant credit risk.
transaction counterparties and
the Group’ s
3)
Guarantees
Pursuant to the Group’s policies, it is only permissible to provide financial guarantees to
subsidiaries and companies that the Group has business with. As of December 31, 2022
and 2021, the Group did not provide any guarantees to other companies besides its
subsidiaries.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
91
(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, 2022 and 2021.
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
92
The Group monitors the capital structure by way of periodical review the debt ratio. As of December
31, 2022 and 2021, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December
31, 2022
$ 326,074,590
December
31, 2021
415,555,537
$ 453,484,433
537,095,340
72%
77%
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, 2022, 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, 2022 and 2021 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
Bonds payable
Long-term borrowings
Lease liabilities
January 1,
2022
$ 118,422,407
Cash flow
(43,590,249)
Other
non-cash
changes
268
December
31, 2022
74,832,426
326,571
(7,400)
(319,171)
-
24,960,513
6,176,609
-
31,137,122
2,304,796
(2,422,290)
11,464,258
11,346,764
Deposits received and others
366,068
207,983
736
574,787
Total liabilities from financing activities $ 146,380,355
(39,635,347)
11,146,091
117,891,099
Short-term borrowings
Bonds payable
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
93
(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. (“Acbel”) and its subsidiaries
Cal-Comp Electronics (USA) Co., Ltd. (“CCUS”)
Cal-Comp Electronics (Thailand) Public Company
Limited (“Cal-Comp”) and its subsidiaries
Jipo Investment Inc. (“Jipo Investment”)
Kinpo
(b) Transactions with key management personnel
Key management personnel remunerations comprised:
Short-term employee benefits
Post-employment benefits
Share-based payments
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
2022
699,852
2021
803,552
7,534
11,328
7,854
6,110
718,714
817,516
$
$
There are no termination benefits and other long-term benefits. Please refer to note (6)(u) for
explanations related to share-based payments.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
94
(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
2022
2021
$
$
208,846
9,744
218,590
220,127
34,059
254,186
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
2022
4,038,193
32,748,290
2021
6,346,763
4,115,321
36,786,483
10,462,084
$
$
Purchase prices and payment period from related parties were similar to those from third-party
suppliers. The payment period was 60~165 days for related parties.
(iii) Receivables due from relate parties
The receivables arising from the transactions mentioned above and others on behalf of related
parties were as follows:
Account
Notes and accounts receivable
Notes and accounts receivable
Other receivables
Other receivables
Related party
categories
December
31, 2022
December
31, 2021
$
Associates
Other related parties
Associates
Other related parties
44,795
4,371,278
1,321
-
$
4,417,394
31,640
1,697,692
2,463
45
1,731,840
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
95
(iv) Payables to related parties
The payables arising from the transactions mentioned above and rendering of services from
other related parties were as follows:
Account
Related party
categories
December
31, 2022
December
31, 2021
Notes and accounts payable
Associates
$
774,001
1,992,718
Notes and accounts payable
Other related parties
8,927,031
1,524,606
Other payables
Other payables
(v)
Property transactions
Associates
Other related parties
96
20,327
35
19,542
$
9,721,455
3,536,901
For the years ended December 31, 2021
Relationship
Other related
party–Jipo
Investment
Item
Acquisition of financial assets at fair
value through other comprehensive
income
Acquisition of the subsidiary
Acquisition of minority shares
Other related
party-CCUS
Associates-
RayPal
Biomedical
Number
of shares
46,197
thousand
shares
1
thousand
shares
588
thousand
shares
Object
Common stocks of
Kinpo
Common stocks of
CIN
Common stocks of
Raycore
Acquisition
price
616,864
226,421
15,129
(8) Pledged assets:
The carrying values of pledged assets were as follows:
Pledged Assets
Subject
Inventories
Other current assets
Other current assets
Bank loans
Customs deposit
Pledged deposit
Property, plant, and equipment Bank loans
Other non-current assets
Customs deposit
Other non-current assets
Pledged deposit
$
December
31, 2022
59,707
534,153
269,003
485,364
800
December
31, 2021
-
336,523
96,880
466,320
500
969,160
544,184
$
2,318,187
1,444,407
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
96
(9) Commitments and contingencies:
The details of commitments and contingencies were as follows:
(a) Huawei Technologies Co., Ltd. filed an infringement litigation against the Group on October 28,
2022. The Group will carefully evaluate the litigation, discuss with related client for the following
strategies and actions, and engage professional attorneys, to protect the rights and reputation of the
Company from any damage.
(b)
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.
(c) The Group entered into various patent license agreements with third parties, and was required to
make royalty payments of a predetermined amount periodically.
(d) As of December 31, 2022 and 2021, the Group’ s signed commitments to purchase property, plant
and equipment amounted to $967,396 and $290,063, respectively.
(10) Losses due to major disasters: None
(11) Subsequent events: None
(12) Other:
(a) The employee benefits, depreciation and amortization expenses by categorized function are
summarized as follows:
By function
By item
Employee benefits
Operating
costs
2022
Operating
expenses
Total
Operating
costs
Salary
Labor and health insurance
Pension
Others
Depreciation
Amortization
16,187,550
1,162,379
1,173,680
3,359,696
5,794,829
71,405
15,215,703
1,022,635
644,736
718,760
1,187,517
490,657
31,403,253
2,185,014
1,818,416
4,078,456
6,982,346
562,062
15,289,343
1,016,912
1,077,976
2,689,676
5,238,351
78,684
2021
Operating
expenses
14,136,585
962,630
570,445
631,048
1,090,392
495,684
Total
29,425,928
1,979,542
1,648,421
3,320,724
6,328,743
574,368
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
97
(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, 2022:
(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, 2022 (excluding investment in subsidiaries, associates and
joint ventures): Please refer to Table 3
(iv)
Individual securities acquired or disposed of with accumulated amount exceeding the lower of
NT$300 million or 20% of the capital stock: Please refer to Table 4
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or
20% of the capital stock: Please refer to Table 5
(vi) Disposals of individual real estate with amount exceeding the lower of NT$300 million or 20%
of the capital stock: None
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of
NT$100 million or 20% of the capital stock: Please refer to Table 6
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 7
(ix) Trading in derivative instruments: Please refer to notes (6)(b) and (6)(d)
(x) Business relationships and significant intercompany transactions: Please refer to Table 8
(b)
Information on investees: Please refer to Table 9
(c)
Information on investment in mainland China: Please refer to Table 10
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
98
(d) Major shareholders:
Shareholder’s Name
Cathay MSCI Taiwan ESG Sustainability High Dividend
Yield ETF
Shareholding
Shares
Percentage
269,519,000
%6.11
Note 1: The information on major shareholders, which is provided by the Taiwan Depository &
Clearing Corporation, summarized the shareholders who held over 5% of total non-physical
common stocks and preferred stocks (including treasury stocks) on the last business date of
each quarter. The registered non-physical stocks may be different from the capital stocks
disclosed in the financial statement due to different calculation basis.
Note 2: If shares are entrusted, the above information regarding such shares will be revealed by
each trustors of individual trust account. The shareholders holding more than 10% of the
total shares of the company should declare insider’ s equity according to Securities and
Exchange Act. The numbers of the shares declared by the insider include the shares of the
trust assets which the insider has discretion over use. For details of the insider’ s equity
announcement please refer to the TWSE website.
(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 uesd, 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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
99
The operating segment information was as follows:
For the year ended December 31, 2022
Information
technology
product segment
Strategy
integrated
product segment
Adjustment and
elimination
Total
Revenue
Revenue from external
$
1,026,078,166
47,167,749
customers
Interest revenue
Total revenue
Interest expense
Deprectation and amortization
Investment gain (loss)
Other significant non-cash
$
$
items:
2,998,570
1,029,076,736
3,131,824
6,810,232
(272,824)
91,356
47,259,105
113,877
734,176
-
Impairment of assets
Reportable segment profit
Reportable segment assets
Reportable segment
liabilities
9,431
-
$
8,246,412
2,477,718
-
-
-
-
-
-
-
-
1,073,245,915
3,089,926
1,076,335,841
3,245,701
7,544,408
(272,824)
9,431
10,724,130
453,484,433
326,074,590
$
$
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
Deprectation and amortization
Investment gain (loss)
Other significant non-cash
items:
Impairment of assets
Reportable segment profit
Reportable segment assets
Reportable segment
liabilities
$
$
$
$
1,197,441,957
1,950,777
1,199,392,734
1,011,790
6,335,289
448,562
38,240,058
66,537
38,306,595
37,347
567,822
-
404,513
15,201,740
-
2,266,095
-
-
-
-
-
-
-
-
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
100
(c)
Products information
The infromation of revenue from external customers:
Products and services
5C related electronic products
Others
(d) Geographic information
2022
2021
$
1,067,076,220
1,232,501,394
6,169,695
3,180,621
$
1,073,245,915
1,235,682,015
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
$
2022
444,691,177
133,452,679
68,709,105
2021
486,362,457
159,061,285
88,162,373
426,392,954
502,095,900
$
1,073,245,915
1,235,682,015
$
2022
13,812,658
20,877,772
10,671,422
989,914
2021
14,411,598
9,837,851
8,708,075
511,749
$
46,351,766
33,469,273
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
2022
2021
$
460,236,878
534,800,186
170,398,727
223,256,380
96,621,806
144,069,158
102,969,721
116,116,250
$
830,227,132
1,018,241,974
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
101
Table 1 Loans to other parties:
(December 31, 2022)
Name of
lender
No.
0 The
Company
Name of
borrower
UCGI
0 The
HengHao
Company
0 The
CEB
Company
0 The
Company
Kinpo &
Compal
Group Assets
Development
Corporation
0 The
CEA
Company
1 CIH
CEP
2 CPC
CIC
Account
name
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
3 CIT
CCI Nanjing Other
receivables
Rayonnant
(Taicang)
Other
receivables
HengHao
Kunshan
HengHao
Kunshan
4 CPO
CIT
5 CET
BT
3 CIT
3 CIT
4 CPO
6 Panpal
6 Panpal
6 Panpal
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Kinpo &
Compal
Group Assets
Development
Corporation
HengHao
Kunshan
Other
receivables
Other
receivables
Ray-Kwong
Medical
Management
Consulting
7 CIC
HengHao
Kunshan
Other
receivables
8 BSH
CIN
9 Gempal
9 Gempal
10 Hong Ji
Kinpo &
Compal
Group Assets
Development
Corporation
Ray-Kwong
Medical
Management
Consulting
Kinpo &
Compal
Group Assets
Development
Corporation
11 CGSP
CEP
12 Arcadyan
12 Arcadyan
12 Arcadyan
12 Arcadyan
Acradyan
Brasil
Acradyan
Brasil
Acradyan
Brasil
Arcadyan
Vietnam
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Highest
balance of
financing to
other parties
during the
period
466,958
Related
party
Y
Actual
usage
amount
during the
period
230,000
Range of
interest rates
during the
period
Purposes of
fund
financing for
the
borrower
1.67%~3.5% Short-term
financing
Transaction
amount for
business
between two
parties
-
Reasons for
short-term
financing
Operating
demand
Allowance
for
bad debt
-
Ending
balance
230,000
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
1.85%
Short-term
financing
1,399,775
767,750
767,750
1.02%~5% Short-term
financing
600,000
600,000
600,000
1.85%
Short-term
financing
2,347,875
1,381,950
1,381,950
1.02%~5% Short-term
financing
64,430
61,420
61,420
5.05%
450,600
440,800
440,800
2.20%
Short-term
financing
Short-term
financing
4,510,100
2,149,700
1,781,180
3.5%~5.05% Short-term
financing
80,538
76,775
-
5.05%
966,450
921,300
921,300
5.05%
1,047,900
-
-
3.50%
675,900
661,200
661,200
2.20%
270,360
264,480
176,320
2.00%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
1,200,000
600,000
600,000
1.67%~1.85% Short-term
financing
1,200,000
600,000
600,000
1.53%~1.85% Short-term
financing
10,000
-
-
1.53%
Short-term
financing
2,406,825
1,689,050
1,689,050
3.5%~5.05% Short-term
financing
579,870
552,780
337,810
5.05%
Short-term
financing
1,000,000
600,000
600,000
1.67%~1.85% Short-term
financing
20,000
10,000
10,000
1.85%
Short-term
financing
200,000
-
64,430
61,420
35,867
59,880
-
-
-
-
-
-
64,300
61,420
42,994
5.00%
280,250
-
-
1.00%
1.67%
Short-term
financing
5.05%
1.00%
1.00%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Transaction
for business
between two
parties
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
4,821,470
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
23,258,950
Maximum
limit of fund
financing
46,517,901
Note
(Note 1)
23,258,950
46,517,901
(Note 1)
23,258,950
46,517,901
(Note 1)
600,044
46,517,901
(Note 1)
23,258,950
46,517,901
(Note 1)
42,553,108
42,553,108
(Note 2)
2,589,107
2,589,107
(Note 3)
25,750,769
25,750,769
(Note 4)
25,750,769
25,750,769
(Note 4)
25,750,769
25,750,769
(Note 4)
3,047,746
3,047,746
(Note 5)
3,047,746
3,047,746
(Note 5)
4,960,064
4,960,064
(Note 6)
2,045,874
2,045,874
(Note 7)
2,045,874
2,045,874
(Note 7)
18,190
2,045,874
(Note 7)
10,388,018
10,388,018
(Note 8)
8,034,374
8,034,374
(Note 9)
855,095
855,095
(Note 10)
18,190
855,095
(Note 10)
467,760
467,760
(Note 11)
92,429
92,429
(Note 12)
2,761,448
5,522,896
(Note 13)
2,761,448
5,522,896
(Note 13)
2,761,448
5,522,896
(Note 13)
2,761,448
5,522,896
(Note 13)
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)(cid:33)COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
102
Table 1 Loans to other parties:
(December 31, 2022)
Name of
lender
No.
12 Arcadyan
Name of
borrower
Arcadyan
Vietnam
Account
name
Other
receivables
Related
party
Y
12 Arcadyan
Arcadyan RU Other
13 Arcadyan
Holding
14 Poindus
Systems
CNC
Adasys
receivables
Other
receivables
Other
receivables
14 Poindus
Systems
Poindus UK Other
receivables
14 Poindus
Systems
Poindus UK Other
receivables
Y
Y
Y
Y
Y
Highest
balance of
financing to
other parties
during the
period
321,500
Actual
usage
amount
during the
period
-
Range of
interest rates
during the
period
1.00%
Ending
balance
307,100
32,150
546,550
-
-
-
-
1.00%
1.00%
21,268
21,268
21,268
2.00%
26,093
-
-
1.00%
24,506
24,109
24,109
1.00%
Purposes of
fund
financing for
the
borrower
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Short-term
financing
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
amount for
business
between two
parties
14,679,380
Reasons for
short-term
financing
-
Allowance
for
bad debt
-
418,792
-
-
80,428
58,395
58,395
Operating
demand
-
-
-
-
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
2,761,448
Maximum
limit of fund
financing
5,522,896
Note
(Note 13)
335,034
5,522,896
(Note 13)
2,108,499
2,108,499
(Note 14)
51,752
208,682
(Note 15)
39,102
208,682
(Note 15)
51,752
208,682
(Note 15)
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
-
-
Note 1:
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Note 10:
Note 11:
Note 12:
Note 13:
Note 14:
Note 15:
Note 16:
According to the Company’ s “Procedures of Lending Funds to Other Parties”, the total amount of loans lent 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 calculated together with the amount of guarantee endorsed by the Company for the company. In addition, the Company shall not limit the total amount of loans to subsidiaries in which the
Company directly or indirectly holds 100% of the voting shares to 80% of the aforementioned amount, but the maximum amount shall not exceed 50% of the Company's total funds lending limit, and shall be
calculated together with the amount of guarantees endorsed by the Company for such companies.
According to CIH’ s Procedures for Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of CIH. When a short-term financing facility with CIH is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CIH’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIH, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CPC’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CPC. When a short-term financing facility with CPC is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CPC’s total amount of capital lent, and shall be combined with the company’
s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not limited by the
two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CPC, and shall be combined with the company’s endorsements/guarantees for the borrower when calculating.
According to CIT ’ s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CIT. When a short-term financing facility with CIT is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CIT’s total amount of capital lent, and shall be combined with the company’s
endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not limited by the two
aforesaid restrictions, but the maximum amount shall not exceed the net worth of CIT, and shall be combined with the company’s endorsements/guarantees for the borrower when calculating.
According to CPO’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CPO. When a short-term financing facility with CPO is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CPO’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CPO, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to CET’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CET. When a short-term financing facility with CET is
necessary, the total amount for lending the borrower shall not exceed 80% of the borrower’s net worth, nor shall it exceed 50% of CET’s total amount of lendable capital, and shall be combined with the
company’s endorsements/guarantees for calculation. In addition, when lending to the ultimate parent company’s 100% directly or indirectly owned overseas subsidiaries, the total amount of loans is not
limited by the two aforesaid restrictions, but the maximum amount shall not exceed the net worth of CET, and shall be combined with the company’ s endorsements/guarantees for the borrower when
calculating.
According to 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 50% directly or indirectly owned subsidiaries by Panpal, or the ultimate parent company’s 50%
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 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 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 Gempal’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Gempal. When a short-term financing facility with Gempal
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 Gempal’s total amount of lendable capital, and shall be combined with the
Gempal’s endorsements/guarantees for calculation. In addition, when lending to indirectly owned overseas subsidiaries or the ultimate parent company’s 100% directly, the total amount of loans is not limited
by 80% of two aforesaid restrictions, but the maximum amount shall not exceed the total amount of lendable capital of Gempal, and shall be combined with the company’s endorsements/guarantees for the
borrower when calculating.
According to Hong Ji’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Hong Ji. When a short-term financing facility with Hong Ji
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 Hong Ji’s total amount of lendable capital, and shall be combined with the
Hong Ji’s endorsements/guarantees for calculation. In addition, when lending to indirectly owned overseas subsidiaries or the ultimate parent company’s 100% directly, the total amount of loans is not limited
by 80% of two aforesaid restrictions, but the maximum amount shall not exceed the total amount of lendable capital of Hong Ji, and shall be combined with the company’s endorsements/guarantees for the
borrower when calculating.
According to CGSP’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CGSP. When a short-term financing facility with CGSP 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 CGSP’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 CGSP, 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 Poindus Systems’ Procedures for Lending Funds to Other parties, the total amount of loans for individual is the lower of the amount of transaction for business between the two parties during the
previous twelve months and 10% of the net worth of the company's latest financial statements, with the total limit of 40% of the net worth of the company's latest financial statements.
The transactions had been eliminated in the consolidated financial statements.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
103
Table 2 Guarantees and endorsements for other parties:
(December 31, 2022)
Counter-party of
guarantee and
endorsement
Name of
guarantor
Name
The Company CEP
No.
0
Relationship
with the
Company
(Note 4)
Limitation on
amount of
guarantees and
endorsements
for a specific
enterprise
29,073,688
Highest
balance for
guarantees
and
endorsements
during the
period
Balance of
guarantees
and
endorsements
as of reporting
date
Actual usage
amount
during the
period
95,386
61,146
61,146
Property
pledged for
guarantees
and
endorsements
(Amount)
-
0
The Company CEB
(Note 5)
29,073,688
132,082
61,420
61,420
0
The Company CEA
(Note 5)
29,073,688
193,973
-
-
0
The Company HengHao
Kunshan
1 Arcadyan
Arcadyan
AU
(Note 5)
29,073,688
27,036
26,448
26,448
(Note 5)
1,840,965
241,125
230,325
2
Poindus
Systems
Qijie
(Note 5)
104,341
32,325
30,710
-
-
-
-
-
-
-
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)2)
0.05%
58,147,377
0.05%
58,147,377
0.00%
58,147,377
0.02%
58,147,377
1.67%
5,522,896
5.98%
260,852
(In Thousands of New Taiwan Dollars)
Parent
company
endorsements/g
uarantees 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
-
-
-
-
-
-
-
Y
-
Y
Note 1:
Note 2:
Note 3:
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.
According to Poindus Systems ’ Procedures for Endorsement and Guarantee, Poindus Systems only endorses and guarantees to subsidiaries wherein it holds 100% of their voting shares. Poindus Systems ’
endorsement and guarantee for a subsidiary shall not exceed 20% of its net worth; and the total amount of endorsements/guarantees shall not exceed 50% of its net worth.
Note 4: Subsidiary whose over 50% common stock is directly owned.
Note 5: Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
104
Table 3 Securities held as of December 31, 2022 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2022)
Name of
holder
Category and name of security
The Company Taiwan Star
Relationship with security
issuer
(cid:4137)
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)
(cid:4137)
Kinpo
Cal-Comp
HWA VI Venture Capital Corp.
HWA Chi Venture Capital Corp.
mProbe Ltd.
Chen Feng Optoelectronics
PrimeSensor Technology Inc.
Ganzin Technology, Inc.
Genovior Biotech Crop.
Airoha Technology Corp.
Clean Energy Fund
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
Lian Hong Art. Co., Ltd.
Taiwan Biotech Co., Ltd.
The Chairman of the Board is
the first degree of kinship of the
Chairman of the Company
(cid:4137)
(cid:4137)
Others
Total
Gempal
Compal Electronics, Inc.
The parent company
Lian Hong Art. Co., Ltd.
Others
Total
Hong Ji
SUYIN Optronics Co., Ltd.
(“SUYIN Optronics”)
Hong Jin
SUYIN Optronics
Arcadyan
GeoThings Inc.
AirHop Communication Inc.
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
Ending balance
Shares/Units
(thousands)
98,046
Carrying
value
418,658
Holding
percentage
(%)
2%
Fair value
418,658
(In Thousands of shares/ units)
The highest holdings in the
period
Shares/Units
(thousands)
98,046
Holding
percentage
(%)
2%
Note
124,044
1,674,591
8%
1,674,591
124,044
8%
281,233
579,341
5%
579,341
281,233
5%
290
22,571
10%
22,571
290
10%
53
11,112
11%
11,112
53
11%
4,000
13,040
3%
13,040
4,000
3%
6,685
101,676
7%
101,676
6,685
7%
868
19,638
1%
19,638
868
1%
2,000
36,000
7%
36,000
2,000
7%
3,846
9,000
2%
9,000
3,846
2%
215
114,137
(cid:4137)
114,137
215
(cid:4137)
(cid:4137)
132,417
5,000
54,150
2%
8%
132,417
(cid:4137)
2%
54,150
5,000
8%
6,000
63,000
19%
63,000
6,000
19%
134,076
134,076
___________
3,383,407
31,648
729,488
1%
729,488
31,648
1%
(Note 1)
69,370
936,490
5%
936,490
69,370
5%
54,000
694,440
5%
694,440
54,000
5%
5,677
169,449
1%
169,449
5,677
1%
2,225
67,470
6%
67,470
2,225
6%
7,845
141,204
3%
141,204
7,845
3%
14,215
14,215
___________
2,752,756
18,369
423,413
(cid:4137)
423,413
18,369
(cid:4137)
(Note 1)
2,225
67,450
6%
67,450
2,225
6%
1,371
1,371
___________
492,234
380
332
200
1,152
-
-
(cid:4137)
(cid:4137)
1%
1%
4%
5%
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
380
1%
(Note 2)
332
1%
(Note 2)
200
7%
(Note 2)
1,152
5%
(Note 2)
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
other comprehensive income-non-
current
Financial assets at fair value through
other comprehensive income-non-
current
Financial assets at fair value through
other comprehensive income-non-
current
Financial assets at fair value through
profit or loss-non current
Financial assets at fair value through
profit or loss-non current
Financial assets at fair value through
profit or loss-non current
Financial assets at fair value through
profit or loss 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
Financial assets at fair value through
other comprehensive income-non-
current
Financial assets at fair value through
other comprehensive income-non-
t
Financial assets at fair value through
other comprehensive income-non-
t
Financial assets at fair value through
profit or loss-non- current
Financial assets at fair value through
profit or loss-non- current
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
105
Table 3 Securities held as of December 31, 2022 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2022)
Name of
holder
Category and name of security
Arcadyan
Adant Technologies Inc.
Relationship with security
issuer
(cid:4137)
IOT Eye, Inc.
TIEF FUND L.P.
Chimei Motor Electronics Co., LTD
Golden Smarthome Technology Corp.
Mactech
HHB
Total
Taichung International Golf
Country Club
HWALLAR OPTRONICS
(Fuzhou) CO., LTD.
Mithera
Beyond Limits, Inc.
BT
CIT
BSH
Suzhou Genki Fuhong Health Management
Co., Ltd.
Kunqiao Phase II (Suzhou) Emerging
Industry Venture Capital Partnership Fund
Achi Capital Partners Fund LP
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
Note 1:The transaction had been eliminated in the consolidated financial statements.
Note 2:The carrying value is the remaining amount after deducting accumulated impairment.
Ending balance
Shares/Units
(thousands)
349
Carrying
value
(cid:4137)
Holding
percentage
(%)
5%
Fair value
(cid:4137)
(In Thousands of shares/ units)
The highest holdings in the
period
Shares/Units
(thousands)
349
Holding
percentage
(%)
5%
Note
(Note 2)
60
(cid:4137)
14%
(cid:4137)
60
14%
(Note 2)
(cid:4137)
46,379
7%
46,379
(cid:4137)
7%
1,650
46,150
5%
46,150
1,650
7%
1,229
(cid:4137)
6%
(cid:4137)
1,229
6%
(Note 2)
___________
92,529
11,220
(cid:4137)
11,220
-
19%
(cid:4137)
873
138,195
(cid:4137)
138,195
4,414
17%
4,414
252,667
10,296
(cid:4137)
(cid:4137)
252,667
10,296
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
19%
(Note 2)
873
(cid:4137)
17%
(cid:4137)
(cid:4137)
Account name
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-non current
Financial assets at fair value
through profit or loss-non current
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
106
Table 4 Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2022)
Name of
company
Category and name of
security
Account
name
Name of
counter-party
Relationship
with the
company
Shares/ Units
Amount
Shares/ Units
Amount
Shares/ Units
Price
Cost
Gain (loss)
on disposal
Shares/ Units
Amount
Shares/ Units
Amount
Beginning Balance
Purchases
Sales
Others
Ending Balance
(In Thousands of New Taiwan Dollars/ shares)
Stock(cid:506)
Poindus Systems
The
Company
CPC
CIT
CIT
CIC
CET
Structured deposits:
Structured deposits–
Bank of China RMB
Strcutured Deposit
Structured deposits–
Bank of China RMB
Strcutured Deposit
Bank of Communications
Yuntong Wealth Time-type
structured deposit products
Structured deposits–
Bank of China RMB
Strcutured Deposit
Structured deposits–
Bank of China RMB
Strcutured Deposit
Investments
accounted for
using equity
method
Public buyouts and
purchases from the
open market
Bank of China
Bank of China
Bank of
Communications
Co., Ltd.
Bank of China
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
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 disposal gains and losses and foreign exchange gains and losses.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,768
353,046
442,622
1,106,555
442,622
663,933
442,622
-
-
-
-
-
-
-
-
-
450,371
442,622
1,125,927
1,106,555
450,043
442,622
675,556
663,933
450,371
442,622
7,749
(Note 2)
19,372
(Note 2)
7,421
(Note 2)
11,623
(Note 2)
7,749
(Note 2)
-
-
-
-
-
-
(28,278)
(Note 1)
11,768
324,768
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Name of
company
Name of
property
Transaction date
May 5, 2022
(Note 1)
Plant,
mechanical and
electrical
equipment
Buildings and
building
improvements
Arcadyan
Vietnam
Kinpo & Compal
Group Assets
Development
Corporation
Compal
Electronics
(Vietnam)
Co., Ltd
(Note 3)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
107
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2022)
Transaction
amount
1,437,610
Status of
payment Counter-party
657,737 Donghui Co., Ltd.
and Chengyuande
Construction and
Trade Co., Ltd.
(In Thousands of New Taiwan Dollars)
If the counter-party is a related party,
disclose the previous transfer information
Relationshi
p with the
Company
None
Relationship
with the
Company
not
applicable
Date of
transfer
not
applicable
Amount
not
applicable
Owner
not
applicable
Purpose of
acquisition
and
current
condition Others
operational
None
use
References
for
determining
price
price
comparison
and
negotiation
November 11, 2022
(Note 2)
In the
maximum
limit of
22,200
thousands
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
Land use rights December 16, 2022
921,300
184,260 GREEN i-PARK
CORPORATION
None
not
applicable
not
applicable
not
applicable
not
applicable
operational
use
None
Refer to the
real estate
appraisal
report issued
by a
professional
appraiser
Note 1:
Note 2:
Note 3:
In order to meet the operational needs, the Board of Directors of Arcadyan Vietnam resolved on May 5, 2022, to authorize the chairman of the Board to expand the plant in the maximum limit of
USD48,000. The total contract amount is expected to be 1,437,610 (VND 1,118,763 million).
In order to meet the operation planning of the group headquarter and corporate sustainable development needs, the Board of Directors of Kinpo & Compal Group Assets Development Corporation
resolved on November 11, 2022, to authorize the chairman of the Board to build a new group operation headquarters building in the maximum limit of 22.2 billion.
Compal Electronics (Vietnam) Co., Ltd (tentative name) is a newly established subsidiary of BSH 100% owned.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
108
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
Company
Name
The
Company
Counter
party
UCGI
CBN
Arcadyan
Nature of
relationship
Subsidiaries wholly
owned by the
Company
The Company's
subsidiaries
The Company's
subsidiaries
Sale
Sale
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Purchase/
(Sale)
Sale
Amount
(221,051)
Percentage
of total
purchases/
(sales)
(0.0)%
Payment terms
120 days
Unit price
Similar to non-related
parties
Payment Terms
There is no significant
difference
Percentage
of total
notes/accounts
receivable
(payable)
Ending
Balance
18,806
0.0%
Note
(Note 2)
(439,192)
(0.0)% Net 90 days from delivery
Similar to non-related
parties
There is no significant
difference
258,313
0.1%
(Note 2)
(4,736,735)
(0.5)% Net 60 days from the end of
the month of delivery
Similar to non-related
parties
Just and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Sale
(1,190,095)
(0.1)%
120 days
Similar to non-related
parties
CIH and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Purchase
129,322,840
13.5%
120 days
Similar to non-related
parties
Just and its
subsidiaries
Subsidiaries wholly
owned by the
Company
HSI and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Purchase
136,046,231
14.2%
120 days
Purchase
57,511,789
6.0%
120 days
Similar to non-related
parties
Similar to non-related
parties
BCI and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Purchase
44,099,411
4.6%
120 days
Markup based on BCI
and its subsidiaries' cost
Etrade and its
subsidiaries
Subsidiaries wholly
owned by the
Company
Purchase
11,706,241
1.2% Net 60 days from delivery Markup based on Etrade
and its subsidiaries' cost
1,451,984
0.8%
(Note 2)
1,433,533
0.8%
(Note 2)
(47,687,191)
(30.9)%
(Note 2)
(1,721,087)
(1.1)%
(Note 2)
(4,914,134)
(3.2)%
(Note 2)
(8,835,507)
(5.7)%
(Note 2)
(2,242,604)
(1.5)%
(Note 2)
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Kinpo
The same chairman of
the Company
Purchase
31,343,280
2.8% Net 35 days from the end of
the month
Similar to non-related
parties
There is no significant
difference.
(8,476,775)
(5.5)%
Just and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(136,046,231)
(99.0)%
120 days
Similar to non-related
parties
UCGI
With the same
ultimate parent
company
Sale
(118,656)
(0.1)%
60 days
Similar to non-related
parties
Compal Electronic,
Inc.
Parent company
Purchase
1,190,095
0.9%
120 days
Similar to non-related
parties
CIH and its
subsidiaries
Etrade and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Purchase
389,981
0.3%
120 days
Similar to non-related
parties
Purchase
201,643
0.2% Net 60 days from delivery According Etrade and
its subsidiaries to
markup pricing
Similar to non-related
parties
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(129,322,840)
(92.9)%
120 days
CEA
CEB
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(405,697)
(0.3)%
120 days
Similar to non-related
parties
Sale
(219,877)
(0.2)%
120 days
Similar to non-related
parties
Just and its
subsidiaries
With the same
ultimate parent
company
Sale
(389,981)
(0.3)%
120 days
Similar to non-related
parties
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
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
Adjustments will be
made based on demand
for funding
1,721,087
97.4%
(Note 2)
38,621
2.2%
(Note 2)
(1,433,533)
(4.1)%
(Note 2)
(128,602)
(0.4)%
(Note 2)
(117,120)
(0.3)%
(Note 2)
47,687,191
87.4%
(Note 2)
124,747
0.1%
(Note 2)
72,382
0.1%
(Note 2)
128,602
0.1%
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
109
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
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
BCI and its
subsidiaries
Nature of
relationship
With the same
ultimate parent
company
Purchase/
(Sale)
Sale
Amount
(3,026,857)
Percentage
of total
purchases/
(sales)
(2.2)%
Payment terms
120 days
Unit price
Similar to non-related
parties
HSI and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
Rayonnant and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
HengHao
With the same
ultimate parent
company
Sale
(4,315,689)
(3.1)%
120 days
Similar to non-related
parties
Purchase
770,541
0.8%
120 days
Purchase
420,918
0.5%
120 days
Purchase
1,147,721
1.2%
120 days
Similar to non-related
parties
Similar to non-related
parties
Similar to non-related
parties
Purchase
179,199
0.2%
120 days
Similar to non-related
parties
Percentage
of total
notes/accounts
receivable
(payable)
1.4%
Note
(Note 2)
Ending
Balance
1,425,340
4,199,215
4.2%
(Note 2)
(32,896)
(0.0)%
(Note 2)
(16,497)
(0.0)%
(Note 2)
(194,275)
(0.2)%
(Note 2)
(25,055)
(0.0)%
(Note 2)
Payment Terms
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
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
CPM
An associate
Purchase
2,571,306
Changbao
An associate
Purchase
944,245
Purchase
806,342
2.8%
1.0%
0.9%
120 days
120 days
120 days
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
(541,816)
(176,997)
(294,099)
(0.7)%
(0.2)%
(0.4)%
Purchase
439,192
19.0% Net 90 days from delivery
-
Parent company
Sale
(44,099,411)
(89.2)%
120 days
Sale
(770,541)
(1.6)%
120 days
Sale
(1,365,373)
(2.8)%
120 days
Sale
(543,836)
(1.1)%
120 days
Markup based on BCI
and its subsidiaries' cost
According to markup
pricing
According to markup
pricing
According to markup
pricing
There is no significant
difference.
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference.
(258,313)
(31.0)%
(Note 2)
8,835,507
27.7%
(Note 2)
32,896
0.1%
(Note 2)
2,409,030
7.6% (Note 1(cid:739)2)
485,682
1.5%
(Note 2)
Sale
(918,657)
(1.9)%
120 days
According to markup
pricing
There is no significant
difference.
180,177
0.6%
(Note 2)
Purchase
3,026,857
7.2%
120 days
Purchase
790,403
1.9% Net 60 days from delivery
Purchase
282,287
0.7%
120 days
Purchase
446,632
Purchase
410,565
1.1%
1.0%
120 days
120 days
Purchase
543,836
14.3%
120 days
Purchase
1,620,529
42.7%
45 days
Purchase
219,877
5.8%
120 days
Sale
(1,620,529)
(17.3)%
45 days
Purchase
405,697
5.3%
120 days
Purchase
918,657
12.0%
120 days
According to markup
pricing
Similar to non-related
parties
Similar to non-related
parties
Similar to non-related
parties
Similar to non-related
parties
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Adjustments will be
made based on demand
for funding
There is no significant
difference.
There is no significant
difference.
According to markup
pricing
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
(1,425,340)
(4.7)%
(Note 2)
(546,121)
(1.8)%
(Note 2)
(27,686)
(0.1)%
(Note 2)
(24,880)
(121,992)
(0.1)%
(0.4)%
(485,682)
(31.2)%
(Note 2)
(415,662)
(26.7)%
(Note 2)
(72,382)
(4.6)%
(Note 2)
415,662
17.3%
(Note 2)
(124,747)
(16.2)%
(Note 2)
(180,177)
(23.4)%
(Note 2)
(Continued)
Acbel and its
subsidiaries
CBN
Compal Electronic,
Inc.
BCI and its
subsidiaries
Compal Electronic,
Inc.
CIH and its
subsidiaries
HSI and its
subsidiaries
CEB
CEA
CIH and its
subsidiaries
BCI and its
subsidiaries
HSI and its
subsidiaries
Rayonnant and its
subsidiaries
CPM
Acbel and its
subsidiaries
BCI and its
subsidiaries
CEA
CIH and its
subsidiaries
CEB
CEA
CEB
CIH and its
subsidiaries
BCI 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
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
ultimate parent
company
With the same
ultimate parent
company
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
110
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
Etrade and its
subsidiaries
Counter
party
Compal Electronic,
Inc.
Nature of
relationship
Parent company
Purchase/
(Sale)
Sale
Amount
(11,706,241)
Percentage
of total
purchases/
(sales)
Payment terms
Unit price
(98.2)% Net 60 days from delivery According to markup
pricing
Just and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
Sale
(201,643)
(1.7)% Net 60 days from delivery According to markup
pricing
Purchase
1,829,041
16.9% Net 60 days from delivery
Similar to non-related
parties
Payment Terms
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Forever and its
subsidiaries
HSI and its
subsidiaries
UCGI
Avalue
With the same
ultimate parent
An associate
Sale
Sale
(514,870)
(100.0)% Net 60 days from delivery
(177,383)
(31.6)%
75 days
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
Compal Electronic,
Inc.
Just and its
subsidiaries
Parent company
Purchase
221,051
With the same
ultimate parent
company
Purchase
118,656
45.9%
24.6%
120 days
60 days
Similar to non-related
parties
Similar to non-related
parties
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(57,511,789)
(95.7)%
120 days
Similar to non-related
parties
Etrade 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
CIH and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(1,829,041)
(3.0)% Net 60 days from delivery
Similar to non-related
parties
Sale
(420,918)
(0.7)%
120 days
Similar to non-related
parties
Sale
(790,403)
(1.3)% Net 60 days from delivery
Similar to non-related
parties
Purchase
4,315,689
6.9%
120 days
Purchase
1,365,373
2.2%
120 days
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, and
adjustments will be
made based on demand
for funding if necessary
Percentage
of total
notes/accounts
receivable
(payable)
Ending
Balance
2,242,604
101.3%
Note
(Note 2)
117,120
5.3%
(Note 2)
(522,935)
(24.5)%
(Note 2)
216,768
100.0%
(Note 2)
38,397
21.4%
(18,806)
(38,621)
(29.7)%
(Note 2)
(61.1)%
(Note 2)
4,914,134
26.1%
(Note 2)
522,935
2.8%
(Note 2)
16,497
0.1%
(Note 2)
546,121
2.9%
(Note 2)
(4,199,215)
(11.1)%
(Note 2)
(2,409,030)
(6.3)% (Note 1(cid:739)2)
Forever and its
subsidiaries
Rayonnant and
its subsidiaries
CIH and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Purchase
514,870
0.8% Net 60 days from delivery
Similar to non-related
parties
There is no significant
difference.
(216,768)
(0.6)% (Note 1(cid:739)2)
Sale
(1,147,721)
(80.2)%
120 days
Similar to non-related
parties
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(282,287)
(19.7)%
120 days
Similar to non-related
parties
HengHao
CIH and its
subsidiaries
With the same
ultimate parent
company
Sale
(179,199)
(1.8)%
120 days
Similar to non-related
parties
Arcadyan
Arcadyan
Germany
Arcadyan
USA
Arcadyan
AU
CNC
Arcadyan
Vietnam
Compal Electronic,
Inc.
Arcadyan's subsidiary
Sale
(1,226,274)
(3.0)% Net 150 days from delivery
Arcadyan's subsidiary
Sale
(16,685,476)
(36.0)% Net 120 days from delivery
Arcadyan's subsidiary
Sale
(1,135,329)
(2.0)% Net 60 days from the end of
the month of delivery
-
-
-
Arcadyan's subsidiary
Purchase
11,854,935
16.0% Net 120 days from delivery According to markup
Arcadyan's subsidiary
Purchase
3,412,391
5.0% Net 180 days from the end of
the month of delivery
pricing
According to markup
pricing
Parent company
Purchase
4,736,735
6.0% Net 60 days from the end of
-
the month of delivery
-
-
-
-
-
-
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
194,275
87.4%
(Note 2)
27,686
12.5%
(Note 2)
25,055
1.3% (Note 1(cid:739)2)
597,274
6.0%
(Note 2)
4,102,435
39.0%
(Note 2)
281,293
3.0%
(Note 2)
(3,011,224)
(24.0)% (Note 1(cid:739)2)
(Note 3)
- % (Note 1(cid:739)2)
(1,451,984)
(12.0)%
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
111
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
Purchase/
(Sale)
Sale
Amount
(11,854,935)
Percentage
of total
purchases/
(sales)
Payment terms
Unit price
(100.0)% Net 120 days from delivery According to markup
Payment Terms
-
Ending
Balance
3,011,224
Percentage
of total
notes/accounts
receivable
(payable)
Note
98.0% (Note 1(cid:739)2)
(In Thousands of New Taiwan Dollars)
Sale
(3,412,391)
(100.0)% Net 180 days from the end of
the month of delivery
Purchase
1,226,274
100.0% Net 150 days from delivery
Purchase
16,685,476
100.0% Net 120 days from delivery
Purchase
1,135,329
100.0% Net 60 days from the end of
the month of delivery
Sale
(134,361)
58.9% Net 60 days from the end of
the month
Purchase
134,361
43.3% Net 60 days from the end of
the month
pricing
According to markup
pricing
-
-
-
-
-
-
-
Similar to non-related
parties
There is no significant
difference.
Similar to non-related
parties
There is no significant
difference.
(Note 3)
- % (Note 1(cid:739)2)
(597,274)
(100.0)%
(Note 2)
(4,102,435)
(100.0)%
(Note 2)
(281,293)
100.0%
(Note 2)
19,726
50.0%
(Note 2)
(19,726)
37.7%
(Note 2)
Company
Name
Counter
party
CNC
Arcadyan
Arcadyan
Vietnam
Arcadyan
Germany
Arcadyan
USA
Arcadyan
AU
Arcadyan
Arcadyan
Arcadyan
Arcadyan
Ripal
GLB
GLB
Ripal
Nature of
relationship
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
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 transactions had been eliminated in the consolidated financial statements.
Note 3: The amount of other receivables on December 31, 2022 is 1,000,854 thousand dollars.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
112
Table 7 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
Nature of
relationship
Ending Balance
Turnover
rate
(December 31, 2022)
Name of Company
Counter-party
The Company
CBN
The Company
Arcadyan
The Company
Just and its subsidiaries
The Company
HSI and its subsidiaries
The Company
Cal-Comp
Just and its subsidiaries Compal Electronic, Inc.
CIH and its subsidiaries Compal Electronic, Inc.
CIH and its subsidiaries CEA
The Company's
subsidiary
The Company's
subsidiary
The Company's
subsidiary
The Company's
subsidiary
The same chairman of
the Company
Parent company
Parent company
With the same
ultimate parent
company
CIH and its subsidiaries
Just and its subsidiaries With the same
ultimate parent
company
CIH and its subsidiaries HSI and its subsidiaries With the same
ultimate parent
company
CIH and its subsidiaries BCI and its subsidiaries With the same
ultimate parent
company
Parent company
BCI and its subsidiaries Compal Electronic, Inc.
BCI and its subsidiaries HSI and its subsidiaries With the same
ultimate parent
company
BCI and its subsidiaries CEB
BCI and its subsidiaries CEA
CEA
CEB
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
Etrade and its
subsidiaries
Etrade and its
subsidiaries
Forever and its
subsidiaries
Compal Electronic, Inc.
Just and its subsidiaries With the same
ultimate parent
company
HSI and its subsidiaries With the same
ultimate parent
company
HSI and its subsidiaries Compal Electronic, Inc.
HSI and its subsidiaries Etrade and its subsidiaries With the same
ultimate parent
company
Parent company
HSI and its subsidiaries BCI and its subsidiaries With the same
ultimate parent
company
Rayonnant and its
subsidiaries
CIH and its subsidiaries With the same
ultimate parent
company
Arcadyan
Arcadyan
Arcadyan
Arcadyan
CNC
CBN
Arcadyan USA
Arcadyan Vietnam
Arcadyan's subsidiary
Arcadyan's subsidiary
Arcadyan AU
Arcadyan Germamy
Arcadyan
Arcadyan's subsidiary
Arcadyan's subsidiary
With the same
ultimate parent
company
HSI and its subsidiaries With the same
ultimate parent
company
Note 1(cid:506)Balance as of March 7, 2023.
Note 2(cid:506)Balance as of March 3, 2023.
Note 3(cid:506)Balance as of March 6, 2023.
Note 4(cid:413)Receivables due to purchasing on behalf of related parties.
Note 5(cid:413)Accounts receivables due to processing raw material.
(In Thousands of New Taiwan Dollars)
Overdue
Amount
-
Action taken
-
Amounts received in
subsequent period
188,346
(Note 1)
Allowance for
bad debts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,390,870
(Note 1)
1,433,533
(Note 1)
1,339,742
(Note 1)
4,370,909
(Note 1)
1,478,627
45,630,291
37,150
(Note 1)
(Note 1)
(Note 1)
-
-
-
(Note 1)
(Note 1)
(Note 1)
8,835,507
-
(Note 1)
(Note 1)
62,919
(Note 1)
160,837
(Note 1)
-
(Note 1)
391,222
(Note 1)
-
-
4,914,134
-
-
-
(Note 1)
(Note 1)
(Note 1)
(Note 1)
(Note 1)
(Note 1)
2,632,307
-
(Note 2)
(Note 2)
188,344
236,699
655,717
(Note 2)
(Note 2)
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
258,313
1,451,984
1,433,533
1.10
6.52
1.66
5,537,829
(Note 4)
(Note 4)
4,370,909
(Note 4)
1,721,087
47,687,191
124,747
(Note 4)
46.04
2.35
2.44
128,602
6.06
4,199,215
1.33
1,425,340
2.01
8,835,507
2,409,030
3.47
0.62
485,682
0.62
180,177
2.67
415,662
4.09
2,242,604
117,120
4.80
3.44
216,768
4.75
4,914,134
522,935
14.38
4.76
546,121
2.89
194,275
11.86
4,102,435
1,000,854
(Note 4)
281,293
597,274
3,011,224
(Note 5)
5.45
(Note 4)
7.45
2.84
4.70
364,925
(Note 5)
(Note 5)
309,627
Strengthen
collections
364,925
(Note 3)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
113
Table 8 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2022)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1)
0
Company name
Counter party
The Company
UCGI
Relationship
(Note 2)
1
Accounts name
Sales Revenue
Amount
221,051
0
0
The Company
CBN
The Company
Arcadyan
0
The Company
JUST and its subsidiaries
1
JUST and its subsidiaries
The Company
1
JUST and its subsidiaries UCGI
2
CIH and its subsidiaries
The Company
2
CIH and its subsidiaries
CEA
2
CIH and its subsidiaries
CEB
2
CIH and its subsidiaries
JUST and its subsidiaries
2
CIH and its subsidiaries
BCI and its subsidiaries
2
CIH and its subsidiaries
HSI and its subsidiaries
3
BCI and its subsidiaries
The Company
3
BCI and its subsidiaries
CIH and its subsidiaries
3
BCI and its subsidiaries
HSI and its subsidiaries
3
3
4
BCI and its subsidiaries
CEB
BCI and its subsidiaries
CEA
CEA
CEB
1
1
1
2
3
2
3
3
3
3
3
2
3
3
3
3
3
Accounts Receivable
Sales Revenue
18,806
439,192
Accounts Receivable
Sales Revenue
258,313
4,736,735
Accounts Receivable
Sales Revenue
1,451,984
1,190,095
Accounts Receivable
Sales Revenue
1,433,533
136,046,231
Accounts Receivable
Sale Revenue
1,721,087
118,656
Accounts Receivable
Sales Revenue
38,621
129,322,840
Accounts Receivable
Sales Revenue
47,687,191
405,697
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
124,747
219,877
72,382
389,981
Accounts Receivable
Sales Revenue
128,602
3,026,857
Accounts Receivable
Sales Revenue
1,425,340
4,315,689
Accounts Receivable
Sales Revenue
4,199,215
44,099,411
Accounts Receivable
Sales Revenue
8,835,507
770,541
Accounts Receivable
Sales Revenue
32,896
1,365,373
Terms
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:579)
There is no significant difference of price to
non-related parties. The credit period is net 90
days from delivery.
(cid:579)
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:579)
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:579)
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:579)
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:579)
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:579)
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:579)
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:579)
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:579)
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:579)
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:579)
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.
(cid:579)
The price is based on the operating cost. The
credit period is net 120 days, and will be
adjusted if necessary.
(cid:579)
The price is based on the operating cost. The
credit period is net 120 days, and will be
adjusted if necessary.
Accounts Receivable
Sales Revenue
2,409,030
543,836
(cid:579)
The price is based on the operating cost. The
credit period is net 120 days.
Accounts Receivable
Sale Revenue
485,682
918,657
Accounts Receivable
Sale Revenue
180,177
1,620,529
(cid:579)
The price is based on the operating cost. The
credit period is net 120 days.
(cid:579)
There is no significant difference of price to
non-related parties. The credit period is net 45
days.
Accounts Receivable
415,662
(cid:579)
Percentage of the
consolidated net
revenue or total
assets
-
-
-
-
0.4%
0.3%
0.1%
0.3%
12.7%
0.4%
-
-
12.0%
10.5%
-
-
-
-
-
-
0.3%
0.3%
0.4%
0.9%
4.1%
1.9%
0.1%
-
0.1%
0.5%
0.1%
0.1%
0.1%
-
0.2%
0.1%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
114
Table 8 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2022)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1)
5
Company name
Counter party
Etrade and its subsidiaries The Company
Relationship
(Note 2)
2
Accounts name
Sales Revenue
Amount
11,706,241
5
Etrade and its subsidiaries
JUST and its subsidiaries
6
Forever and its
subsidiaries
HSI and its subsidiaries
7
HSI and its subsidiaries
The Company
7
HSI and its subsidiaries
Etrade and its subsidiaries
7
HSI and its subsidiaries
CIH and its subsidiaries
7
HSI and its subsidiaries
BCI and its subsidiaries
8
8
Rayonnant and its
subsidiaries
CIH and its subsidiaries
Rayonnant and its
subsidiaries
BCI and its subsidiaries
9
HengHao
CIH and its subsidiaries
10
Arcadyan
Arcadyan
Germany
10
Arcadyan
Arcadyan USA
10
Arcadyan
Arcadyan AU
10
Arcadyan
Arcadyan Vietnam
11
CNC
Arcadyan
12
Arcadyan Vietnam
Arcadyan
13
Ripal
GLB
3
3
2
3
3
3
3
3
3
3
3
3
3
3
3
3
Accounts Receivable
Sales Revenue
2,242,604
201,643
Accounts Receivable
Sales Revenue
117,120
514,870
Accounts Receivable
Sales Revenue
216,768
57,511,789
Accounts Receivable
Sales Revenue
4,914,134
1,829,041
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
522,935
420,918
16,497
790,403
Accounts Receivable
Sales Revenue
546,121
1,147,721
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
194,275
282,287
27,686
179,199
Accounts Receivable
Sales Revenue
25,055
1,226,274
Accounts Receivable
Sales Revenue
597,274
16,685,476
Accounts Receivable
Sales Revenue
4,102,435
1,135,329
Accounts Receivable
Other Receivable
281,293
1,000,854
Processing Revenue
11,854,935
Accounts Receivable
Processing Revenue
3,011,224
3,412,391
Sales Revenue
134,361
Terms
The price is based on the operating cost. The
credit period is net 60 days from delivery, and
will be adjusted if necessary.
(cid:579)
The price is based on the operating cost. The
credit period is net 60 days from delivery, and
will be adjusted if necessary.
(cid:579)
There is no significant difference of price to
non-related parties. The credit period is net 60
days from delivery.
(cid:579)
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:579)
There is no significant difference of price to
non-related parties. The credit period is net 60
days from delivery, and will be adjusted if
necessary.
(cid:579)
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:579)
There is no significant difference of price to
non-related parties. The credit period is net 60
days from delivery, and will be adjusted if
necessary.
(cid:579)
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:579)
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:579)
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:579)
There is no significant difference of price to
non-related parties. The credit period is net 150
days from delivery.
(cid:579)
There is no significant difference of price to
non-related parties. The credit period is net 120
days from delivery.
(cid:579)
There is no significant difference of price to
non-related parties. The credit period is net 60
days from delivery.
(cid:579)
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:579)
The credit period is net 180 days from the end
of the month of delivery and depended on
funding demand.
There is no significant difference of price to
non-related parties.The credit period is net 60
days from the end of the month.
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.
Accounts Receivable
19,726
(cid:579)
Percentage of the
consolidated net
revenue or total
assets
1.1%
0.5%
-
-
-
-
5.4%
1.1%
0.2%
0.1%
-
-
0.1%
0.1%
0.1%
-
-
-
-
-
0.1%
-
1.6%
0.9%
0.1%
-
0.2%
1.1%
0.7%
0.3%
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Table 9 The information on investees for the nine months ended September 30, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
115
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
The Company Kinpo & Compal Group Assets
Development Corporation
Location
Taipei City
Main Businesses
and Products
Real estate development leasing
and related management
business
December 31,
2022
December 31,
2021
Shares
525,000
525,000
52,500
Percentage
of Ownership
70%
Carrying
Value
505,547
Shares
52,500
Percentage of
Ownership
Net income
(losses) of
investee
Share of
profits/losses of
investee
70%
(27,910)
(19,538)
Note
(Note 2)
Original Investment Amount
Ending Balance
The highest holdings in the
period
Houston, USA Warranty services and marketing
36,369
36,369
100
100%
452,361
100
100%
3,410
3,410
(Note 2)
British Virgin
Islands
British Virgin
Islands
Taipei City
of LCD TVs and notebook PCs
Investment
Investment
Investment
1,480,509
1,480,509
48,010
100% 10,364,994
48,010
100%
(43,156)
(43,156)
(Note 2)
1,787,680
1,787,680
53,001
100% 42,565,956
53,001
100% 1,030,304
1,030,304
(Note 2)
5,171,837
5,171,837
500,000
100%
4,405,558
(Note 1)
Taipei City
Investment
900,036
900,036
90,000
100%
1,726,562
Taipei City
Consultation, training
services, etc.
3,000
3,000
300
38%
4,882
(Note 1)
500,000
0
90,000
0
300
100% (313,956)
(377,252)
(Note 2)
0%
100%
0%
38%
164,612
127,886
(Note 2)
284
106
Taipei City
Tainan City Manufacturing of electric
appliance and audiovisual
electric products
Management&Consultant, rental
and
and
wholesale and retail of medical
equipments
Taoyuan City Manufacturing of electric
appliance and audiovisual
Investment
business
leasing
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%
122,458
6,000
100%
24,384
20,384
(Note 2)
200,000
200,000
20,000
100%
84,482
20,000
100%
(17,399)
(17,399)
(Note 2)
42,000
42,000
2,772
42%
-
2,772
34
34
1
100%
3,619,227
6,000
6,000
600
100%
3,696
1
600
42%
100%
-
-
-
#REF! (Note 2)
100%
2,056
576
(Note 2)
Taoyuan City Production and sales of PCB
Taipei City
Design and manufacture of PCs
and peripheral equipment
395,388
353,046
395,388
-
10,158
11,768
20%
56%
438,793
324,768
10,158
11,768
20%
56%
555,696
4,415
112,728
(1,196)
(Note 2)
90,000
90,000
100,000
52%
44,330
100,000
52%
(24,930)
(12,973)
(Note 2)
Investment
197,463
197,463
6,427
100%
864,057
489,450
489,450
98
49%
398,723
35,000
35,000
3,500
35%
24,990
149,547
149,547
3,739
33%
41,029
98
6,427
3,500
3,739
49% (664,683)
(325,694)
100%
11,842
11,842
(Note 2)
35%
(25,660)
(8,981)
(Note 2)
33%
(95,015)
(31,576)
Bizcom
Just
CIH
Panpal
Gempal
Kinpo Group management
consultant company (“Kinpo Group
management”)
Ripal
Unicore
Lead-Honor Optronics. Co., Ltd.
(“Lead-Honor”)
CEH
Shennona Taiwan
Allied Circuit
Poindus Systems
Aco Smartcare
Lipo Holding Co., Ltd.
CPE
Starmems
Crownpo Technology
Inc. (“Crownpo”)
Hong Ji
Hong Jin
Mactech
Auscom
Arcadyan
FGH
Shennona
HSI
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
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
Investment
lighting, retailing of equipment
and international trading
Taipei City
Taipei City
Taichung City Manufacturing of equipment and
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
Investment
1,000,000
295,000
219,601
1,000,000
295,000
219,601
100,000
29,500
21,756
100%
100%
53%
1,169,400
374,428
262,227
100,000
29,500
21,756
100%
100%
53%
97,275
42,400
44,823
97,275
42,400
26,334
(Note 2)
(Note 2)
(Note 2)
101,747
101,747
3,000
100%
149,561
3,000
100%
10,180
10,180
(Note 2)
1,325,132
1,325,132
41,305
19%
2,668,147
41,305
21% 1,915,053
378,755
(Note 2)
2,754,741
2,754,741
89,755
100%
4,510,138
89,755
100% (152,120)
(152,120)
(Note 2)
CEP
Hippo Screen Neurotech Co., Ltd. Taipei City
Infinno Technology Corporation
(“Infinno”)
Hsinchu
County
HengHao
Taipei City
British Virgin
Islands
Delaware,
USA
British Virgin
Islands
Poland
British Virgin
Islands
Hsinchu
County
Taipei City
BCI
CBN
Rayonnant
CRH
Acendant Private Equity
Investment Ltd.
Etrade
Webtek
Medical care IOT business
48,210
32,665
-
100%
16,505
-
100%
(65)
(65)
(Note 2)
Investment
1,346,814
1,346,814
42,700
54%
233,699
42,700
54%
407,288
218,225
(Note 2)
Maintenance and warranty
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
90,156
112,000
90,156
112,000
136
9,100
100%
91%
(27,599)
34,975
136
9,100
100%
91%
(23,440)
(26,246)
(23,440)
(23,883)
(Note 2)
(Note 2)
127,026
127,026
4,648
28%
32,062
4,648
28%
(20,788)
(5,762)
5,729,757
5,729,757
20,015
100%
(797,521)
20,015
100% (231,377)
(231,377)
(Note 2)
2,636,051
2,636,051
90,820
100%
8,565,523
90,820
100%
582,505
582,505
(Note 2)
284,827
284,827
29,060
43%
627,558
29,060
43%
(57,588)
(24,531)
(Note 2)
295,000
295,000
29,500
100%
200,647
29,500
100%
27,157
32,532
(Note 2)
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Investment
Investment
Investment
Investment
377,328
377,328
12,500
100%
287,734
12,500
100%
32,813
32,813
(Note 2)
943,922
943,922
31,253
35%
1,405,430
31,253
35%
(46,382)
#REF!
1,532,029
1,532,029
46,900
65%
(364,333)
46,900
65%
87,088
(134,458)
(Note 2)
3,340
3,340
100
100%
763,229
100
100%
33,407
33,407
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Table 9 The information on investees for the nine months ended September 30, 2022 (excluding information on investees in Mainland China):
116
(December 31, 2022)
Investor
Company
Investee
Company
The Company Forever
UCGI
Palcom
Avalue
CORE
Compal Ruifang
GLB
CGSP
ARCE
Original Investment Amount
Ending Balance
Main Businesses
and Products
December 31,
2022
December 31,
2021
Shares
Investment
1,575
1,575
50
Percentage
of Ownership
100%
Carrying
Value
1,531,800
(In Thousands of New Taiwan Dollars/ shares)
The highest holdings in the
period
Shares
Percentage of
Ownership
Net income
(losses) of
investee
Share of
profits/losses of
investee
50
100%
84,921
84,921
Note
(Note 2)
Manufacturing and retail sale of
computers and electronic
components
Selling of mobile phones
Manufacturing, processing, and
import and export business of
industrial motherboards
689,997
489,998
20,000
100%
162,613
20,000
100%
102
(83)
(Note 2)
100,000
547,595
100,000
547,595
10,000
14,924
100%
21%
112,687
727,787
10,000
14,924
100%
21%
3,547
556,099
3,547
118,990
(Note 2)
Investment
4,318,860
4,318,860
147,000
100%
7,666,891
147,000
100%
301,896
301,896
(Note 2)
Investing and developing
businesses, such as public
construction and specific zones
100,000
-
10,000
100%
99,940
10,000
100%
(60)
(60)
(Note 2)
Location
British Virgin
Islands
Taipei City
Taipei City
New Taipei
City
British Virgin
Islands
New Taipei
City
New Taipei Manufacturing and wholesale of
Poland
Taipei City
Maintenance and warranty
Biotechnology services, research
& development services,
intellectual property rights,
wholesale of animal medication,
retail sale and management
advisory
Cancerous immunocyte therapy
and regenerative medicine
247,560
89,669
60,000
246,860
89,669
60,000
15,035
-
20,000
50%
100%
33%
371,580
92,429
23,708
15,035
-
20,000
50%
100%
33%
81,417
3,773
(61,803)
40,421
(3,816)
(20,601)
(Note 2)
(Note 2)
209,076
155,076
4,646
30%
186,922
4,646
30%
(37,927)
(11,348)
Raypal
Taipei City
Panpal
Arcadyan
Hsinchu City Telecommunication equipment
279,202
279,202
8,192
4%
573,951
8,192
4% 1,915,053
__________
97,080,580
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%
126,442
2,927
6%
555,696
boards
Gempal
Others
Arcadyan
Hsinchu City Telecommunication equipment
306,655
306,655
9,279
4%
(514,643)
675,117
9,279
4% 1,915,053
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%
139,086
3,220
6%
555,696
boards
Hong Ji
Others
Arcadyan
Hsinchu City Telecommunication equipment
306,655
306,655
9,279
4%
(740)
675,117
9,279
4% 1,915,053
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%
31,888
851
2%
555,696
boards
Hong Jin
Arcadyan
Hsinchu City Telecommunication equipment
131,942
131,942
4,609
2%
320,345
4,609
2% 1,915,053
and apparatus manufacturing,
electronic parts and components
manufacturing, restrained
telecom radio frequency
equipment and materials import
and manufacturing
Just
CDH (HK)
Hong Kong
Investment
1,913,156
1,913,156
62,298
100%
7,842,940
62,298
100%
(77,396)
CII
CPI
CII
Smart
AEI
MEL
MTL
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
283,914
283,914
9,245
100%
258,032
9,245
100%
(24)
15,355
15,355
500
100%
13,668
500
100%
11,067
31
31
1
100%
381
1
100%
(7)
U.S.A
Sales and maintenance of LCD
TVs
30,710
30,710
1,000
100%
(483)
1,000
100%
(37)
U.S.A
Investment
252,866
252,866
U.S.A
Investment
31
31
-
-
100%
209,588
100%
31
-
-
100%
20
100%
-
___________
#REF!
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
Investment gain
(losses)
recognized by
CII
Investment gain
(losses)
recognized by
CII
Investment gain
(losses)
recognized by
CII
Investment gain
(losses)
recognized by
CII
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Table 9 The information on investees for the nine months ended September 30, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
117
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
CIH
CIH (HK)
Location
Hong Kong
Main Businesses
and Products
Investment
December 31,
2022
2,297,185
December 31,
2021
2,297,185
Shares
74,803
Percentage
of Ownership
Carrying
Value
Shares
Percentage of
Ownership
100% 41,759,699
74,803
100% 1,485,718
Net income
(losses) of
investee
Original Investment Amount
Ending Balance
The highest holdings in the
period
Jenpal
PFG
FWT
CCM
HSI
IUE
Goal
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
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
BCI
CMI
PRI
CORE
BSH
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
225,719
225,719
7,350
100%
111,492
7,350
100%
1,931
31
31
1
100%
5,455
1
100%
25,570
457,579
457,579
14,900
100%
457,578
14,900
100%
(1)
156,621
156,621
5,100
51%
25,691
5,100
51%
(4,805)
2,057,570
2,057,570
67,000
100%
664,327
67,000
100%
406,560
390,017
390,017
12,700
100%
338,159
12,700
100%
728
2,057,570
2,057,570
67,000
100%
664,327
67,000
100%
406,560
390,017
390,017
12,700
100%
339,807
12,700
100%
728
2,481,982
2,481,982
80,820
100%
5,400,819
80,820
100%
392,369
307,100
307,100
10,000
100%
3,164,705
10,000
100%
190,136
4,514,370
4,514,370
147,000
100%
7,666,891
147,000
100%
301,896
BSH
Mithera
Cayman
Islands
Investment
155,086
155,086
-
99%
140,305
-
99%
(3,242)
HSI
CIN
British Virgin
Islands
Investment
1,136,270
1,136,270
37,000
46%
768,787
37,000
46%
407,288
U.S.A
Manufaturing
249,672
249,672
1
100%
215,327
1
100%
4,015
Forever
GIA
British Virgin
Islands
Selling of mobile phones
-
-
61,420
61,420
-
-
100%
-
100%
101,739
-
-
100%
-
100%
79,661
CWV
Vietnam
Webtek
Etrade
British Virgin
Islands
R&D, manufacturing, sales, and
maintenance of notebook PCs,
computer monitors, LCD TVs
and electronic components
Investment
767,750
767,750
25,000
35%
7,446
25,000
35%
87,088
Unicore
Raycore
Taipei City
Animal medication retail and
wholesale
-
40,692
-
0%
-
-
0%
-
Arcadyan
Arcadyan Holding
British Virgin
Islands
Investment
1,701,027
2,219,782
47,780
100%
1,804,421
64,780
100%
(45,949)
Arcadyan USA
U.S.A
Sales of wireless network
products
23,055
23,055
Arcadyan Germany
Germany
Technology support and sales of
wireless network products
1,125
1,125
1
1
100%
79,312
100%
87,814
1
1
100%
(63,692)
100%
7,152
Arcadyan Korea
Korea
Sales of wireless network
products
2,879
2,879
20
100%
24,216
20
100%
11,167
Zhi-Bao
Hsinchu City
Investment
48,000
48,000
34,980
100%
405,516
34,980
100%
(10,735)
TTI
Taipei City
R&D and sales of household
digital products
308,726
308,726
25,028
61%
205,272
25,028
61% (256,058)
AcBel Telecom
Taipei City
Investment
-
23,000
-
0%
-
4,494
51%
3,365
Share of
profits/losses of
investee
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
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
Note
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Table 9 The information on investees for the nine months ended September 30, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
118
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Arcadyan
Arcadyan UK
Location
UK
Main Businesses
and Products
December 31,
2022
December 31,
2021
Shares
Technical support of wireless
network products
1,988
1,988
50
Percentage
of Ownership
100%
Carrying
Value
4,759
Original Investment Amount
Ending Balance
The highest holdings in the
period
Shares
Percentage of
Ownership
Net income
(losses) of
investee
50
100%
572
Arcadyan AU
Australia
Arcadyan RU
Russia
Sales of wireless network
products
Sales of wireless network
products
1,161
1,161
50
100%
61,405
50
100%
18,089
7,672
7,672
-
100%
4,964
-
100%
(1,713)
CBN
Hsinchu
County
Sales of communication and
electronic components
11,925
11,925
533
1%
11,898
533
1%
(57,588)
Arcadyan and
Zhi-Bao
Arcadyan Brasil
Brazil
Sales of wireless network
products
81,593
81,593
968
100%
(41,645)
968
100%
(23,669)
Arcadyan India
India
Sales of wireless network
products
29,110
13,507
7,500
100%
23,337
7,500
100%
(4,001)
Arcadyan
Holding
Sinoprime
British Virgin
Islands
Investment
892,126
892,126
29,050
100%
1,223,179
29,050
100%
267,559
Arch Holding
British Virgin
Islands
Investment
338,148
338,148
35
100%
827,635
35
100% (323,027)
TTI
Quest
Samoa
Investment
36,852
36,852
1,200
100%
(230,523)
1,200
100% (142,972)
TTJC
Japan
Sales of household digital
electronic products
9,626
9,626
1
100%
3,297
1
100%
(499)
Quest
Exquisite
Samoa
Investment
35,931
35,931
1,170
100%
(232,168)
1,170
100% (142,975)
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless
network products
890,590
890,590
-
100%
1,218,634
-
100%
267,530
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%
293,202
13,140
19%
(57,588)
257,454
257,454
8,651
41%
193,110
8,651
41%
59,449
Forming Co., Ltd.
Taoyuan City R&D and manufacturing of
27,300
27,300
1,820
21%
-
1,820
21%
-
CRH
APH
APH
PEL
electronic materials
British Virgin
Islands
Investment
British Virgin
Islands
Investment
383,875
383,875
12,500
59%
287,734
12,500
59%
59,449
96,767
96,767
3,151
100%
43,994
3,151
100%
456
Rayonnant(HK)
Hong Kong
Investment
552,780
552,780
18,000
100%
428,698
18,000
100%
58,993
HHT
HHA
HHA
HHB
British Virgin
Islands
Investment
British Virgin
Islands
Investment
CBN
CBNB
Belgium
CBNN
The
Netherlands
Starmems
Taiwan
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
R&D of MEMS microphone
related products
1,429,235
1,429,235
46,882
100% (1,091,269)
46,882
100% (360,633)
1,439,747
1,439,747
46,882
100% (1,091,210)
46,882
100% (360,633)
6,842
6,842
20
100%
5,386
20
100%
(255)
7,016
7,016
20
100%
6,168
20
100%
(118)
10,000
10,000
1,000
10%
7,140
1,000
10%
(25,660)
FGH
Wah Yuen Technology Holding Ltd.
and its subsidiaries
Mauritius
Investment
2,756,391
2,756,391
95,862
37%
4,580,629
95,862
37% (377,622)
Mactech
Taiwan Intelligent Robotics
Company, Ltd.
Taipei City
Manufacturing of equipment and
lighting
43,200
43,200
2,160
17%
2,395
2,160
17%
(25,969)
Note
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
Share of
profits/losses of
investee
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
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
Mactech
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Table 9 The information on investees for the nine months ended September 30, 2022 (excluding information on investees in Mainland China):
119
(December 31, 2022)
Investor
Company
Poindus
Systems
Investee
Company
Poindus Investment
Location
Taipei City
Main Businesses
and Products
investment holding
December 31,
2022
December 31,
2021
4,100
4,100
Shares
(Note 3)
Percentage
of Ownership
100%
Carrying
Value
559
Shares
(Note 3)
Percentage of
Ownership
Net income
(losses) of
investee
100%
(61)
Original Investment Amount
Ending Balance
The highest holdings in the
period
(In Thousands of New Taiwan Dollars/ shares)
Poindus UK
UK
Sales of PCs and peripherals
14,297
14,297
300
100%
(7,792)
300
100%
(2,676)
Adasys
Germany
Sales of PCs and peripherals
57,712
57,712
0.002
100%
1,866
0.002
100%
(26,473)
Poindus
Investment
Poindus GmbH
Germany
Sales of PCs and peripherals
1,721
1,721
(Note 3)
100%
135
(Note 3)
100%
(61)
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: A limited company, therefore no number of shares.
Note
(Note 2)
(Note 2)
(Note 2)
(Note 2)
Share of
profits/losses of
investee
Investment gain
(losses)
recognized by
Poindus Systems
Investment gain
(losses)
recognized by
Poindus Systems
Investment gain
(losses)
recognized by
Poindus Systems
Investment gain
(losses)
recognized by
Poindus
Investment
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
120
Table 10 Information on investment in Mainland China:
(December 31, 2022)
(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, 2022
1,136,270
Investment flows
Outflow
-
Inflow
-
Accumulated
outflow of
investment from
Taiwan as of
December 31,
2022
1,136,270
Net income
(losses) of the
investee
(301,556)
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
(301,556)
Book value
2,597,603
Accumulated
remittance of
earnings in
current
period
-
Total amount of
paid-in capital
1,136,270
Method of
investment
(Note 1)
(In Thousands of New Taiwan Dollars/ shares)
614,200
(Note 2)
614,200
-
-
614,200
36,769
100%
36,769
123,413
-
Name of
investee
CPC
CDT
Main businesses and
products
Manufacturing and sales of
monitors
Manufacturing and sales of
notebook PCs, mobile phones,
and Digital products
CET
Manufacturing of notebook
PCs
368,520
(Note 2)
368,520
-
-
368,520
(341,528)
100%
(341,528)
4,968,182
CSD
Research, manufacture and
sales of communication
devices, mobile phones,
electronic computer, smart
watch, and provide related
technology service
Zheng Ying
Electronics
(Chongqing)
Co., Ltd.
Research & development, and
manufacturing latest electronic
components, precision cavity
mold, design and
manufacturing for standard
parts for molds, and selling
self -produced products
BT
Manufacturing of notebook
PCs
264,852
(Note 2)
(Note 3)
-
-
-
(178,620)
100%
(178,620)
133,487
69,639
(Note 2)
(Note 3)
-
-
-
-
51%
-
(43,757)
30,710
(Note 2)
30,710
-
-
30,710
57,996
100%
57,996
(115,716)
CGS
Maintenance and warranty
service of notebook PCs
8,828
(Note 2)
(Note 3)
982,720
(Note 1)
409,364
-
-
-
-
-
7,260
100%
7,260
(38,545)
409,364
(568,185)
43%
(245,342)
300,436
-
-
-
-
-
-
614,200
(Note 1)
45,144
-
-
45,144
(512,722)
48%
(244,056)
308,175
-
LIZ
Electronics (Kunshan)
Co., Ltd.
LIZ
Electronics (Nantong)
Co., Ltd.
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:28874) 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
CIC
Manufacturing of notebook
PCs
368,520
(Note 2)
368,520
-
-
368,520
739,180
100%
739,180
10,388,019
CPO
Manufacturing and
sales of LCD TVs
371,591
(Note 1)
371,591
-
-
371,591
112,294
100%
112,294
3,047,731
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
121
Table 10 Information on investment in Mainland China:
(December 31, 2022)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Name of
investee
CIT
Main businesses and
products
Manufacturing of notebook
PCs
Total amount of
paid-in capital
737,040
Method of
investment
(Note 2)
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment from
Taiwan as of
January 1, 2022
737,040
Investment flows
Outflow
-
Inflow
-
Accumulated
outflow of
investment from
Taiwan as of
December 31,
2022
Net income
(losses) of the
investee
737,040
954,634
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
954,634
Book value
25,750,770
Accumulated
remittance of
earnings in
current
period
-
CST
International trade and
distribution of computers and
electronic components
42,994
(Note 2)
42,994
Sheng Bao Precision
Electronics (Taicang)
Co., Ltd.
CIJ
CDE
CIS
CEC
CMC
CEQ
Compal Precision Module
(Jiangsu) Co., Ltd.
Changbao Electronic
Technology (Chongqing)
Co., Ltd.
Rayonnant (Taicang)
CCI Nanjing
CDCN
CWCN
Hanhelt
Arcadyan
SVA Arcadyan
CNC
THAC
Research & development, and
manufacturing latest electronic
components, precision cavity
mold, design and
manufacturing for standard
parts for molds, and selling
self-produced products
Investment and consulting
services
Manufacturing and sales of
LCD TVs
Outward investment and
consulting services
R&D and manufacturing of
notebook PCs, tablet PCs,
digital products, network
switches, wireless AP, and
automobile electronic products
Corporate management
consulting, financial and tax
consulting, investment
consulting, and investment
management consulting
services
R&D, manufacturing and sales
of notebook PCs and related
components. Also provides
related maintenance and
warranty services
Manufacturing and selling of
magnesium alloy injection
molding
Production and marketing of
magnesium alloy molding
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
Manufacturing and wireless
network products
307,100
(Note 2)
156,621
479,076
(Note 2)
479,076
460,650
(Note 2)
(Note 3)
2,481,982
(Note 1)
2,481,982
2,456,800
(Note 2)
(Note 3)
-
-
-
-
-
-
-
-
-
-
-
-
42,994
(8,091)
100%
(8,091)
45,069
156,621
(4,805)
51%
(2,450)
58,466
479,076
158,621
100%
158,621
2,643,288
-
160,011
100%
160,011
2,608,270
2,481,982
392,369
100%
392,369
5,400,819
-
392,329
100%
392,329
5,369,643
24,568
(Note 2)
(Note 3)
-
-
-
148
100%
148
24,729
307,100
(Note 1)
307,100
-
-
307,100
190,136
100%
190,136
3,164,705
12,898,200
(Note 2)
2,537,475
1,842,600
(Note 2)
351,814
552,780
(Note 2)
383,875
829,170
(Note 1)
675,620
178,118
(Note 1)
178,118
1,504,790
(Note 1)
583,490
61,420
(Note 1)
61,420
248,751
(Note 1)
382,340
(Note 1)
412,128
(Note 7)
338,148
(Note 8)
35,317
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,537,475
(1,093)
37%
(400)
5,538,329
351,814
(218,529)
37%
(80,025)
655,762
383,875
58,993
100%
58,993
429,298
675,620
(64,917)
100%
(64,917)
(1,168,454)
178,118
1,490
100%
1,490
90,840
583,490
155,008
100%
155,008
1,065,299
61,420
(2,771)
100%
(2,771)
(369)
412,128
6,199
100%
6,199
35,040
338,148
(323,027)
100%
(323,027)
827,635
35,317
(142,975)
100%
(142,975)
(232,690)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Manufacturing of household
electronics products
102,879
(Note 1(cid:501)
9)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
122
Table 10 Information on investment in Mainland China:
(December 31, 2022)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Name of
investee
HengHao
Main businesses and
products
Total amount of
paid-in capital
Method of
investment
Accumulated
outflow of
investment from
Taiwan as of
January 1, 2022
Investment flows
Outflow
Inflow
Accumulated
outflow of
investment from
Taiwan as of
December 31,
2022
Net income
(losses) of the
investee
Percentage
of
ownership
Investment
income
(losses)
(Note 4)
Book value
Accumulated
remittance of
earnings in
current
period
(In Thousands of New Taiwan Dollars/ shares)
HengHao Kunshan
Production of touch panels and
related components
1,228,400
(Note 1)
1,222,350
Lucom
Manufacturing of notebook
PCs and related modules
460,650
(Note 2)
199,585
(Note 12)
Poindus Systems
Qijie
Sales of PCs and peripherals
30,710
(Note 1)
30,710
-
-
-
-
-
-
1,222,350
(361,185)
100%
(361,185)
(1,232,238)
199,585
671
100%
671
140,778
30,710
(10,931)
100%
(10,931)
11,493
-
-
-
(ii) Limitation on investment in Mainland China:
Names of
Company
Accumulated Investment in Mainland China
as of December 31, 2022
Investment Amounts Authorized by Investment
Commission of Ministry of Economic Affairs
The Company
Arcadyan
HengHao
Poindus Systems
16,661,311
(US$542,537)
(Note 5)
785,593
(US$25,581)
1,439,439
(US$46,872)
30,710
(US$1,000)
23,598,055 (US$768,416)
785,593 (US$25,581)
1,439,439 (US$46,872)
30,710 (US$1,000)
(In Thousands of USD)
Limitation on investment in Mainland China by
Investment Commission of Ministry of
Economic Affairs
(Note 6)
8,284,344
(Note 12)
308,044
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”) and Compal Electronics (China) Co., Ltd.
The investment income (loss) was determined based on the financial report reviewed 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.
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.
The net equity of HengHao is negative at December 31, 2022.
(iii) Significant transactions:
For the year ended December 31, 2022, 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, 2022 and 2021
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
1
2
3
4
5
6
7
8
8
8～10
10～29
29～30
30～64
64～71
71
71～72
72
72
72～73
(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
73、85～96
73、97～101
74、102～103
74
74
75～84
KPMG
(cid:9175)(cid:8958)(cid:11753)110615(cid:8136)(cid:20368)(cid:24022)5(cid:15260)7(cid:22086)68(cid:14842)((cid:9175)(cid:8958)101(cid:10510)(cid:14842))
68F., TAIPEI 101 TOWER, No. 7, Sec. 5,
Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)
(cid:26338)(cid:729)(cid:729)(cid:23128) Tel
(cid:8346)(cid:729)(cid:729)(cid:18182) Fax
(cid:19865)(cid:729)(cid:729)(cid:10023) Web
+ 886 2 8101 6666
+ 886 2 8101 6667
kpmg.com/tw
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, 2022 and 2021, the statement of comprehensive income,
changes in equity and cash flows for the years ended December 31, 2022 and 2021, 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, 2022 and 2021, and its financial performance and its cash flows
for the years then ended December 31, 2022 and 2021, 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 Standards on Auditing of 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 Norm of
Professional Ethics for Certified Public Account of Republic of China, and we have fulfilled our other ethical
responsibilities in accordance with these requirement. 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.
KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
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, judgement of specific items, 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 Standards on Auditing of 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 the Standards on Auditing of the Republic of China, we exercise
professional judgment and 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, 2023
COMPAL ELECTRONICS, INC.
Balance Sheets
December 31, 2022 and 2021
(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:
December 31, 2022
Amount
%
December 31, 2021
Amount
%
$
30,965,694
8.2
8,279,979
1.9
169,758,431
44.7
273,369,033
61.1
13,277,948
3,862,484
3.5
1.0
2,695,685
3,265,442
0.6
0.7
53,064,157
14.0
60,958,417
13.6
900,626
0.2
345,547
0.1
271,829,340
71.6
348,914,103
78.0
Investments accounted for using equity method (note (6)(g))
98,259,876
25.9
88,992,850
19.9
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)(j))
Right-of-use assets (note (6)(k))
Intangible assets
Deferred tax assets (note (6)(p))
Other non-current assets
249,567
3,133,840
2,417,309
1,033,366
529,906
1,743,609
336,598
0.1
0.8
0.6
0.3
0.1
0.5
0.1
222,303
-
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
107,704,071
28.4
98,434,111
22.0
1100
1170
1180
1200
1310
1470
1550
1510
1517
1600
1755
1780
1840
1990
2100
2130
2170
2180
2200
2230
2280
2300
2365
2322
2540
2570
2580
2640
2670
3110
3200
3300
3400
3500
Liabilities and Equity
Current liabilities:
Short-term borrowings (note (6)(l))
Current contract liabilities (note (6)(s))
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)(n))
Other current liabilities
Current refund liabilities
Long-term borrowings, current portion (note (6)(m))
Non-Current liabilities:
Long-term borrowings (note (6)(m))
Deferred tax liabilities (note (6)(p))
Non-current lease liabilities (note (6)(n))
Non-current net defined benefit liability (note (6)(o))
Non-current liabilities, others (note (6)(g))
Total liabilities
Equity (note (6)(q)):
Ordinary share
Capital surplus
Retained earnings
Other equity interest
Treasury shares
Total equity
4
December 31, 2022
Amount
%
December 31, 2021
Amount
%
$
53,068,579
14.0
78,967,920
17.7
700,046
78,000,744
76,181,679
13,119,799
3,872,974
249,553
2,005,816
2,012,229
19,300,000
0.2
20.6
20.1
3.4
1.0
0.1
0.5
0.5
5.1
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
248,511,419
65.5
324,236,031
72.5
11,225,000
1,177,418
791,427
566,941
966,452
14,727,238
3.0
0.3
0.2
0.1
0.3
3.9
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
263,238,657
69.4
335,987,949
75.1
44,071,466
11.6
5,078,580
1.3
44,071,466
6,724,856
9.8
1.5
69,969,059
18.4
69,651,940
15.6
(1,943,104)
(0.5)
(8,206,750)
(1.8)
(881,247)
(0.2)
(881,247)
(0.2)
116,294,754
30.6
111,360,265
24.9
Total assets
$
379,533,411
100.0
447,348,214
100.0
Total liabilities and equity
$
379,533,411
100.0
447,348,214
100.0
See accompanying notes to financial statements.
COMPAL ELECTRONICS, INC.
Statements of Comprehensive Income
For the years ended December 31, 2022 and 2021
(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Share)
5
Net sales revenue (notes (6)(s) and (7))
Cost of sales (notes (6)(f), (6)(o), (7) and (12))
Gross profit
Operating expenses: (notes (6)(o) and (12))
Selling expenses
Administrative expenses
Research and development expenses
Net operating income
Non-operating income and expenses:
Interest income (note (6)(u))
Other gains and losses, net (note (6)(u))
Finance costs (note (6)(n))
Other income (note (6)(u))
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)(p))
Profit
Other comprehensive income:
2022
2021
Amount
%
Amount
%
$1,003,642,791 100.0 1,171,613,858 100.0
975,074,956
97.2 1,143,709,503
97.6
28,567,835
2.8
27,904,355
2.4
6,211,342
2,831,405
12,263,065
21,305,812
7,262,023
367,313
790,769
0.6
0.3
1.2
2.1
0.7
-
0.1
5,720,031
2,677,154
11,928,778
20,325,963
7,578,392
45,045
591,365
0.5
0.3
1.0
1.8
0.6
-
0.1
(2,546,827)
(0.3)
(692,890)
(0.1)
334,311
1,826,023
771,589
8,033,612
745,320
7,288,292
-
0.2
-
0.7
0.1
0.6
347,999
-
6,573,057
6,864,576
14,442,968
1,810,301
12,632,667
0.6
0.6
1.2
0.1
1.1
Components of other comprehensive income (loss) that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans
134,331
-
(46,186)
Unrealized gains (losses) from investments in equity instruments measured at fair value through other
comprehensive income
(610,977)
(0.1)
466,327
-
-
-
-
-
(434,424)
3,589
-
-
279,206
31,660
667,687
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)(p))
(914,659)
(0.1)
Components of other comprehensive income (loss) that will be reclassified to profit or loss
Exchange differences on translation of foreign financial statements
7,183,714
0.7
(1,791,462)
(0.1)
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
78,865
Income tax related to components of other comprehensive income that will be reclassified to profit or
loss
Components of other comprehensive income that will be reclassified to profit or loss
Other comprehensive income
Total comprehensive income
Earnings per share (note (6)(r))
Basic earnings per share
Diluted earnings per share
-
7,262,579
6,347,920
13,636,212
$
$
$
-
-
0.7
0.6
1.2
1.67
1.66
(63,362)
-
-
-
(1,854,824)
(1,187,137)
11,445,530
(0.1)
(0.1)
1.0
2.90
2.86
4000
5000
6100
6200
6300
7100
7020
7050
7190
7370
7900
7950
8300
8310
8311
8316
8330
8360
8361
8380
8399
8300
8500
9750
9850
See accompanying notes to financial statements.
COMPAL ELECTRONICS, INC.
Statements of Changes in Equity
For the years ended December 31, 2022 and 2021
(Expressed in Thousands of New Taiwan Dollars)
Retained earnings
Balance at January 1, 2021
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
Balance at December 31, 2021
Profit for the year ended December 31, 2022
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
8,342,813
-
-
-
-
-
-
(1,762,859)
61,825
2,132
80,027
918
-
6,724,856
-
-
-
-
-
-
(1,762,859)
33,397
(18,066)
100,035
1,217
Legal
reserve
20,414,740
-
-
-
924,672
-
-
-
-
-
-
-
-
21,339,412
-
-
-
1,237,434
-
-
-
-
-
-
-
comprehensive income
Balance at December 31, 2022
-
$ 44,071,466
-
5,078,580
-
22,576,846
Special
reserve
4,101,743
-
-
-
-
3,164,965
-
-
-
-
-
-
-
7,266,708
-
-
-
-
940,042
-
-
-
-
-
-
-
8,206,750
Unappropriated
retained
earnings
38,049,698
12,632,667
(40,067)
12,592,600
(924,672)
(3,164,965)
(5,288,576)
(25,946)
(49,878)
-
-
-
Total
retained
earnings
62,566,181
12,632,667
(40,067)
12,592,600
-
-
(5,288,576)
-
(25,946)
(49,878)
-
-
(142,441)
41,045,820
7,288,292
118,035
7,406,327
(142,441)
69,651,940
7,288,292
118,035
7,406,327
(1,237,434)
(940,042)
(7,051,435)
(2,260)
(38,351)
-
-
-
-
-
(7,051,435)
-
(2,260)
(38,351)
-
-
2,838
39,185,463
2,838
69,969,059
Exchange
differences on
translation of
foreign
financial
statements
(6,888,977)
-
(1,855,728)
(1,855,728)
-
-
-
-
-
-
-
-
-
(8,744,705)
-
7,274,994
7,274,994
-
-
-
-
-
-
-
-
-
(1,469,711)
See accompanying notes to financial statements.
6
Treasury
shares
Total equity
(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
7,288,292
6,347,920
13,636,212
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(7,051,435)
(1,762,859)
31,137
(19,818)
100,035
1,217
-
(881,247) 116,294,754
Total other equity interest
Unrealized
gains
(losses) on
financial
assets
measured at
fair value
through other
comprehensive
income
Others
Total other
equity
interest
(779)
(7,266,708)
-
(1,147,070)
(1,147,070)
904
904
(376,952)
-
707,754
707,754
-
-
-
-
-
-
14,709
49,878
142,441
537,830
-
(1,032,694)
(1,032,694)
-
-
-
-
-
-
-
36,599
-
-
-
-
-
-
-
-
-
-
125
-
(12,415)
(12,415)
-
-
-
-
-
-
-
-
-
-
-
-
14,709
49,878
-
-
142,441
(8,206,750)
-
6,229,885
6,229,885
-
-
-
-
-
36,599
-
-
(2,838)
(461,103)
-
(12,290)
(2,838)
(1,943,104)
COMPAL ELECTRONICS, INC.
Statements of Cash Flows
For the years ended December 31, 2022 and 2021
(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
Expected credit loss
Net loss (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
Others
Total adjustments to reconcile profit (loss)
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in notes and accounts receivable
Decrease (increase) in other receivables
Decrease (increase) in inventories
(Increase) decrease in other current assets
Total changes in operating assets
Changes in operating liabilities:
(Decrease) increase in notes and accounts payable
Increase in other payables
Increase in refund liabilities
(Decrease) increase in contract liabilities
Increase 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 other comprehensive income
Acquisition of investments accounted for using equity method
Proceeds from capital reduction and liquidation of investments
Acquisition of property, plant and equipment
(Increase) decrease in other receivables due from related parties
Acquisition of intangible assets
Others
Net cash flows used in investing activities
Cash flows from (used in) financing activities:
(Decrease) increase 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 (used in) from 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
2022
2021
$
8,033,612
14,442,968
1,292,481
10,092
17,430
2,546,827
(367,313)
(60,493)
(1,826,023)
7,903
1,620,904
92,993,745
861,286
7,894,260
(440,998)
101,308,293
(56,853,309)
2,252,516
456,262
(332,145)
936,481
(14,859)
(53,555,054)
47,753,239
49,374,143
57,407,755
363,622
762,393
(2,149,093)
(1,345,557)
55,039,120
(293,452)
10,028
(723,290)
2,010
(332,902)
(1,417,334)
(558,111)
(116,556)
(3,429,607)
(25,899,341)
79,109,500
(72,884,500)
(439,591)
(8,814,294)
4,428
(28,923,798)
22,685,715
8,279,979
30,965,694
$
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
COMPAL ELECTRONICS, INC.
Notes to the Financial Statements
For the years ended December 31, 2022 and 2021
(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, 2023.
(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 financial statements, from January 1, 2022:
● 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”
(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, 2023, would not have a significant impact on its financial statements:
● 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”
(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”
Amendments to IAS 1 “Non-
current Liabilities with
Covenants”
Effective date per
IASB
January 1, 2024
January 1, 2024
Content of amendment
IAS 1
requirements,
Under existing
companies classify a liability as current
when they do not have an unconditional
right to defer settlement for at least 12
the reporting date. The
months after
amendments has removed the requirement
for a right to be unconditional and instead
now requires that a right to defer settlement
must exist at the reporting date and have
substance.
The amendments clarify how a company
classifies a liability that can be settled in its
own shares – e.g. convertible debt.
new
amendments1,
After reconsidering certain aspects of the
2020
1
amendments clarify that only covenants
with which a company must comply on or
before
the
classification of a liability as current or
non-current.
reporting date affect
IAS
the
Covenants with which the company must
comply after the reporting date (i.e. future
covenants) do not affect a liability’ s
classification at that date. However, when
non-current liabilities are subject to future
covenants, companies will now need to
disclose
users
understand the risk that those liabilities
could become repayable within 12 months
after the reporting date.
information
help
to
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:
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
10
● 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 IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative
Information “
● IFRS16 “Requirements for Sale and Leaseback Transactions”
(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.
(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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
11
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
12
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.
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”).
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
13
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.
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
14
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.
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).
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
15
The maximum period considered when estimating ECLs is the maximum contractual
period over which the Company 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 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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
16
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.
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.
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)
3)
4)
Buildings: 35~50 years
Building improvement: 2~12 years
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
21
(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
－ 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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
22
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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
23
(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:
In preparing these financial statements, management has made 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
Cash equivalents
December
31, 2022
December
31, 2021
$
$
3,504
27,183,895
652,991
3,125,304
30,965,694
1,741
8,210,472
67,766
-
8,279,979
Please refer to note (6)(v) 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, 2022
December
31, 2021
$
$
117,150
132,417
249,567
137,540
84,763
222,303
(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)(v).
As of December 31, 2022 and 2021, 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, 2022
December
31, 2021
$
1,688,060
2,016,402
579,341
782,312
84,127
695,728
614,907
181,060
$
3,133,840
3,508,097
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, 2021, the Company has sold all of its shareholdings, measured at
fair value through other comprehensive income, in GENKI SANGA HOLDINGS CO., LTD. The
fair value of the shares upon disposal amounted to $10,028, resulting in a cumulative loss of $2,838,
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, 2022 and 2021, will be $156,692 and $175,405, 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)(v).
As of December 31, 2022 and 2021, 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
allowance for sales returns and discounts
Notes and accounts receivable
Notes and accounts receivable – related parties
December
31, 2022
$ 170,615,775
December
31, 2021
247,202,299
16,091,084
32,498,305
186,706,859
279,700,604
(3,642,881)
(3,632,789)
(27,599)
(3,097)
$ 183,036,379
276,064,718
$ 169,758,431
273,369,033
$
13,277,948
2,695,685
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, 2022
Carrying
amount of
notes and
accounts
receivable
$
176,980,832
6,102,290
3,623,737
$
186,706,859
Weighted-
average
ECL rate
0%
0.314%
100%
Credit rating
Level A
Level B
Level C
Lifetime ECLs
-
19,144
3,623,737
3,642,881
Credit-
impaired
No
No
Yes
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
33
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
The aging analysis of notes and accounts receivable, was determined as follows:
Overdue 1 to 180 days
December
31, 2022
December
31, 2021
$
1,306,052
264,733
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
2022
2021
3,632,789
3,634,794
10,092
(2,005)
3,642,881
3,632,789
$
$
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, 2022 and 2021, 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, 2022 and 2021, 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, 2022 and 2021, 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 $ 30,110,005
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 33,585,262
December 31, 2022
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivables
Amount
Collateral
derecognized Interest rate
-
30,110,005
-
-
30,110,005 4.74%~5.61%
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%
As of December 31, 2022 and 2021, 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, 2022
December
31, 2021
$
$
2,979,700
221,214
661,570
3,862,484
1,608,560
137,717
1,519,165
3,265,442
As of December 31, 2022 and 2021, none of other receivables were past due.
(f)
Inventories
Finished goods
Work in progress
Raw materials
December
31, 2022
15,471,653
1,276,477
36,316,027
53,064,157
$
$
December
31, 2021
7,535,072
1,188,814
52,234,531
60,958,417
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
35
(i) During the years ended December 31, 2022 and 2021, inventory cost recognized as cost of
sales amounted to $975,074,956 and $1,143,709,503, respectively.
(ii) The loss due to the write-down of inventories to net realizable value amounted $937,684 and
$1,795,897 for the years ended December 31, 2022 and 2021, respectively.
(iii) As of December 31, 2022 and 2021, 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, 2022
93,821,244
$
December
31, 2021
84,948,309
3,259,336
3,345,350
97,080,580
88,293,659
Plus: Accounts receivable and other receivables-related parties
227,599
240,400
Credit balance of investment in equity method (other non-
current liability)
Less: unrealized profits or losses
961,854
(10,157)
468,948
(10,157)
$
98,259,876
88,992,850
(i)
Subsidiaries
Please refer to the consolidated financial statement for the year ended December 31, 2022.
(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, 2022
December
31, 2021
$
$
1,031,010
1,214,819
2,245,829
1,686,183
849,180
2,535,363
2)
The Company’s share of the net gain (loss) of associates was as follows:
The Company’s share of the gain of associates
2022
(179,262)
$
2021
471,621
(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, 2022
December
31, 2021
Carrying amount of individually immaterial associates
$
3,259,336
3,345,350
The Company’s share of the net income (loss) of
associates:
Profit from continuing operations
Other comprehensive income (loss)
Total comprehensive income (loss)
$
$
(179,262)
149,704
(29,558)
471,621
160,378
631,999
2022
2021
(iii) As of December 31, 2022 and 2021, the Company did not provide any investments accounted
for using equity method as collaterals for its loans.
(h) Corporate combination
In order to accelerate the deployment in the industrial PCs market, the Company made a tender offer
for 56% ownership of Poindus Systems Corp, Ltd. (“Poindus Systems”) at a total price of $353,046.
The aforementioned price was paid, and the settlement had been completed.
Goodwill arising from the acquisition of 56% ownership is as follows:
Consideration transferred
Non-controlling interests
Less: fair value of identifiable net assets
$
$
353,046
247,882
(563,868)
37,060
Goodwill is mainly derived from the business value of Poindus Systems in the industrial PCs market.
It is expected that the business of Poindus System and the Company business will be integrated to
generate synergy.
(i)
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 new shares because of its
employees’ exercised stock options in 2021, resulting in a decrease in the ownership of
the Company and its subsidiaries in CBN by 0.02%.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
37
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%.
4)
Cancellation of subsidiaries’ restricted shares and conversion of convertible bonds
Arcadyan canceled 30 thousand and 53 thousand restricted shares in the years ended
December 31, 2022 and 2021. Whereas, Arcadyan issued 3,892 thousand and 8,136
thousand new shares due to the conversion of convertible bonds during 2022 and 2021.
These two events, respectively, resulted in a decrease of 0.59% and 1.30% the ownership
of the Company and its subsidiaries in Arcadyan in the years ended December 31, 2022
and 2021.
CBN canceled 469 thousand restricted shares in the year ended December 31, 2022. This
event resulted in an increase of 0.43% the ownership of the Company and its subsidiaries
in CBN in the year ended December 31, 2022.
5)
The acquisition of additional equity in the subsidiary
In June 2022, the Company acquired 0.12% of equity interest in GLB from minority
shareholders with $700 in cash, increasing equity from 50.00% to 50.12%.
In August 2021, the Company acquired 49% of equity interest in Raycore Biotech from
minority shareholders with $15,129 in cash, increasing the equity from 51% to 100%.
6)
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
2022
2021
33,397
(2,260)
31,137
61,825
(11,237)
50,588
$
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
38
(j)
Property, plant and equipment
The cost, depreciation, and impairment of the property, plant and equipment of the Company for the
years ended December 31, 2022 and 2021, were as follows:
Cost:
Balance on January 1, 2022
Additions
Disposals and derecognitions
Reclassifications
Balance on December 31, 2022
Balance on January 1, 2021
Additions
Disposals and derecognitions
Effect of movements in exchange rates
Balance on December 31, 2021
Depreciation and impairments loss:
Balance on January 1, 2022
Depreciation for the period
Disposals and derecognitions
Reclassifications
Balance on December 31, 2022
Balance on January 1, 2021
Depreciation for the period
Disposals and derecognitions
Balance on December 31, 2021
Carrying amounts:
Balance on December 31, 2022
Balance on January 1, 2021
Balance on December 31, 2021
Buildings
and building
improvement
Other
equipment
Land
Under
construction
and
prepayment
for purchase of
equipment
Total
$
1,047,797
2,556,398
2,790,052
27,476
6,421,723
-
-
-
36,218
198,484
98,200
332,902
(100,195)
(91,188)
-
(191,383)
(42,487)
144,906
(102,419)
-
$
$
1,047,797
2,449,934
3,042,254
23,257
6,563,242
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
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
1,682,354
2,254,406
110,767
275,322
(99,968)
(76,948)
(42,487)
42,487
1,650,666
2,495,267
1,554,775
2,141,745
127,579
265,151
-
(152,490)
1,682,354
2,254,406
-
-
-
-
-
-
-
-
-
3,936,760
386,089
(176,916)
-
4,145,933
3,696,520
392,730
(152,490)
3,936,760
1,047,797
1,047,797
1,047,797
799,268
963,725
874,044
546,987
583,815
535,646
23,257
2,417,309
9,556
2,604,893
27,476
2,484,963
As of December 31, 2022 and 2021, the Company did not provide property, plant and equipment as
collateral for its borrowing.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
39
(k) 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, 2022
Additions
Deductions
Balance on December 31, 2022
Balance on January 1, 2021
Additional
Deductions
Balance on December 31, 2021
Depreciation:
Balance on January 1, 2022
Depreciation for the period
Deductions
Balance on December 31, 2022
Balance on January 1, 2021
Depreciation for the period
Deductions
Balance on December 31, 2021
Carrying amount:
Balance on December 31, 2022
Balance on January 1, 2021
Balance on December 31, 2021
$
$
$
$
$
$
$
$
$
2,263,891
151,796
(347,237)
2,068,450
1,983,275
529,032
(248,416)
2,263,891
927,542
440,095
(327,450)
1,040,187
711,010
463,549
(247,017)
927,542
1,028,263
1,272,265
1,336,349
28,374
532
(183)
28,723
45,174
2,365
(19,165)
28,374
17,464
6,156
-
23,620
27,314
9,315
(19,165)
17,464
5,103
17,860
10,910
2,292,265
152,328
(347,420)
2,097,173
2,028,449
531,397
(267,581)
2,292,265
945,006
446,251
(327,450)
1,063,807
738,324
472,864
(266,182)
945,006
1,033,366
1,290,125
1,347,259
(l)
Short-term borrowings
The details of short-term borrowings were as following:
Unsecured bank loans
Unused credit line for short-term borrowings
Range of interest rates
December
31, 2022
53,068,579
December 31,
2021
78,967,920
94,657,000
48,648,000
1.45%~5.38% 0.42%~0.78%
$
$
For information on the Company’s interest risk, foreign currency risk and liquidity risk, please refer
to note (6)(v).
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
40
(m) Long-term borrowings
The details of long-term borrowings were as follows:
Unsecured bank loans
Less: current portion
Total
Unused credit line for
long-term borrowings
Unsecured bank loans
Less: current portion
Total
Unused credit line for
long-term borrowings
December 31, 2022
Currency
TWD
Range of annual
interest rates
1.48%~2.06%
Maturity year
2023~2026
December 31, 2021
Currency
TWD
Range of annual
interest rates
0.62%~0.98%
Maturity year
2022~2024
Amount
30,525,000
(19,300,000)
11,225,000
12,969,000
Amount
24,300,000
(15,675,000)
8,625,000
11,803,000
$
$
$
$
$
$
For information on the Company’s interest risk, foreign currency risk and liquidity risk, please refer
to note (6)(v).
(n) Lease liabilities
The details of lease liabilities were as follows:
Current
Non-current
For the maturity analysis, please refer to note (6)(v).
The amounts recognized in profit or loss was as follows:
December
31, 2022
December
31, 2021
$
$
249,553
791,427
357,794
991,342
Interest on lease liabilities
Expenses relating to leases of low-value assets or short-term
leases
2022
2021
15,115
16,915
9,113
9,221
$
$
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
41
The amounts recognized in the statement of cash flows for the Company was as follows:
Total cash outflow for leases
(i)
Building leases
2022
2021
$
463,819
505,744
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.
(o) 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, 2022
(1,185,366)
December
31, 2021
(1,318,160)
618,425
602,029
(566,941)
(716,131)
$
$
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
42
The balance of the Company’ s labor pension reserve account in the Bank of Taiwan
amounted to $612,388 (excluding the ending balance of interest receivable) as of
December 31, 2022. 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
$
(1,318,160)
2022
Current service costs and interest
Remeasurements of net benefit liabilities
Benefit paid by the plan
(13,894)
87,865
58,823
2021
(1,286,459)
(10,148)
(54,331)
32,778
Defined benefit obligations on December 31
$
(1,185,366)
(1,318,160)
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:
2022
2021
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
$
602,029
4,317
46,466
24,436
(58,823)
618,425
599,405
2,857
8,145
24,400
(32,778)
602,029
4)
Expenses recognized in profit or loss
The expenses recognized in profit or loss for the Company were as follows:
Current service cost
Net interest on the net defined benefit liability
(asset)
2022
2021
$
$
3,952
5,625
9,577
3,920
3,371
7,291
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
5)
Actuarial assumptions
2022
2021
$
$
351
456
2,394
6,376
9,577
43
257
352
1,831
4,851
7,291
The following were the Company’s principal actuarial assumptions at the reporting date:
Discount rate
Future salary increase rate
December 31,
2022
1.70%
December 31,
2021
0.80%
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 $24,383.
The weighted-average lifetime of the defined benefit plan is 8.1 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, 2022
Discount rate
Future salary increasing rate
December 31, 2021
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(23,229)
23,643
(28,902)
29,212
23,998
(23,005)
29,922
(28,374)
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
44
(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 $421,223 and $391,223 for the years ended December 31, 2022 and 2021, respectively.
Payment was made to the Bureau of Labor Insurance.
(p)
Income taxes
(i)
Income tax expenses
1)
The amount of income tax for the years ended December 31, 2022 and 2021, was as
follows:
Current tax expense
Recognized during the period
$
1,627,923
2,262,124
2022
2021
Undistributed earnings additional tax
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary differences
Income tax expense
157,833
-
(638,549)
(525,167)
1,147,207
1,736,957
(401,887)
(401,887)
73,344
73,344
$
745,320
1,810,301
2)
The amount of income tax recognized in other comprehensive income for the years ended
December 31, 2022 and 2021, 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
2022
2021
$
$
26,866
(9,237)
(23,277)
3,589
40,897
31,660
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
45
3)
The income tax expense that was reconciled between the actual income tax expense and
profit before tax for the years ended December 31, 2022 and 2021, 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
Income tax expense
2022
8,033,612
1,606,722
157,833
2021
14,442,968
2,888,594
-
(372,094)
(98,000)
(638,549)
362,434
(273,026)
745,320
(84,031)
(65,440)
(525,167)
(915,638)
511,983
1,810,301
$
$
$
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2022 and 2021 were as follows:
Exchange
differences on
translation
Refund
liabilities
Contract
liabilities
Unrealized
exchange
losses, net
Others
Total
Deferred tax assets:
Balance on January 1, 2022
$
Recognized in profit or loss
Recognized in other
164,573
47,663
comprehensive income
-
Balance on December 31, 2022 $
212,236
Balance on January 1, 2021
$
Recognized in profit or loss
Recognized in other
68,560
96,013
195,296
91,252
-
286,548
134,880
60,416
89,998
(68,036)
394,836
580,646
273,517
1,118,220
730
652,255
-
21,962
49,536
40,462
-
975,482
588,025
(193,189)
(26,866)
(26,866)
247,381
261,653
2,627
1,743,609
1,102,654
6,329
comprehensive income
-
-
-
-
9,237
9,237
Balance on December 31, 2021 $
164,573
195,296
89,998
394,836
273,517
1,118,220
Deferred tax liabilities:
Balance on January 1, 2022
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2022
Balance on January 1, 2021
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2021
Unrealized
exchange
gains, net
Others
Total
$
$
$
$
(504,663)
(250,368)
-
(755,031)
(424,990)
(79,673)
-
(445,664)
-
23,277
(950,327)
(250,368)
23,277
(422,387)
(1,177,418)
(404,767)
(829,757)
-
(40,897)
(79,673)
(40,897)
(504,663)
(445,664)
(950,327)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
46
(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, 2022
December
31, 2021
$
738,878
599,004
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, 2022 and 2021, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $2,618,241 and
$2,335,023, respectively.
As of December 31, 2022 and 2021, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $68,285,943
and $58,601,692, respectively.
(v) Examination and approval
The Company’s tax returns for the year through 2020 were assessed by the tax authorities.
(q) Capital and other equities
(i) Ordinary shares
As of December 31, 2022 and 2021, 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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
47
(ii) Capital surplus
The balances of capital surplus were as follows:
Additional paid-in capital
Treasury share transactions
December
31, 2022
December
31, 2021
$
1,898,477
2,721,968
3,660,119
2,621,933
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
156,072
36,766
122,675
for using equity method
265,297
283,363
$
5,078,580
6,724,856
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 15, 2022 and March
26, 2021, approved to distribute cash of $1,762,859 and $1,762,859 (representing 0.4 and 0.4
New Taiwan dollars per share), by using capital surplus.
The Company’s Board of Directors’ meeting held on March 15, 2023, approved to distribute
cash of $881,429 (representing 0.2 New Taiwan dollars per share), by using capital surplus.
The related information can be accessed through the Market Observation Post System website.
(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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
48
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.
3)
Earnings distribution
Distribution for the earnings of 2021 and 2020 were approved in the meeting of the
Board of Directors held on March 15, 2022 and March 26, 2021, respectively. The
relevant information was as follows:
2021
2020
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed to
common shareholders
$
1.6
7,051,435
1.2
5,288,576
Distribution for the earnings of 2022 was approved in the meeting of the Board of
Directors held on March 15, 2023. The relevant information was as follows:
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
49
2022
Amount
per share
Total
amount
Cash dividends distributed to common shareholders from
the unappropriated earnings
$
1.0
4,407,147
The related information of the earnings distribution for the year ended December 31,
2022, 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, 2022 and 2021. As of December 31, 2022, 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
23.05 and 24.20 New Taiwan dollars per share as of December 31, 2022 and 2021,
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.
(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, 2022
$
(8,744,705)
The Company
Subsidiaries
Associates
7,183,714
9,700
81,580
537,830
(590,539)
(420,019)
11,625
Balance on December 31, 2022
Balance on January 1, 2021
$
$
(1,469,711)
(461,103)
(6,888,977)
(376,952)
The Company
Subsidiaries
Associates
(1,791,462)
(38,894)
(25,372)
Balance on December 31, 2021
$
(8,744,705)
567,871
160,972
185,939
537,830
-
-
-
-
125
(8,206,750)
6,593,175
(12,415)
(422,734)
93,205
(12,290)
(1,943,104)
(779)
(7,266,708)
904
(1,223,591)
122,982
160,567
125
(8,206,750)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
50
(r)
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
$
7,288,292
12,632,667
2022
2021
Weighted-average number of outstanding ordinary shares
(in thousands)
Diluted earnings per share:
4,357,130
4,357,130
Profit attributable to ordinary shareholders of the Company
(after adjustment of potential diluted ordinary shares)
$
7,288,292
12,632,667
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
43,369
65,517
Weighted-average number of ordinary shares (after adjustment of
potential diluted ordinary shares) (in thousands)
4,400,499
4,422,647
(s) 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
2022
IT Product
Segment
422,138,779
$
2021
IT Product
Segment
475,525,614
128,937,847
152,490,382
67,399,114
86,279,648
40,249,464
49,815,031
344,917,587
407,503,183
$ 1,003,642,791
1,171,613,858
$ 1,002,242,692
1,170,311,198
1,400,099
1,302,660
$ 1,003,642,791
1,171,613,858
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
51
(ii) Contract balance
Notes and accounts receivable (including
related parties)
Less: allowance for impairment
Less: credit balances of investments in
equity method
Total
Contract liabilities
December
31, 2022
December
31, 2021
January 1,
2021
$ 186,706,859
(3,642,881)
279,700,604
(3,632,789)
233,054,851
(3,634,794)
(27,599)
$ 183,036,379
700,046
$
(3,097)
276,064,718
1,032,191
-
229,420,057
828,978
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, 2022 and 2021 that was
included in the balances of contract liability at the beginning of the period were $1,032,191
and $828,978, 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.
(t)
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 $750,945 and $1,350,062,
respectively, and directors’ compensation of $39,709 and $71,370 for the years ended December 31,
2022 and 2021, 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 2022 and 2021.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
52
There is no differences between the amount estimated and recognized in the financial statements in
2021. The related information can be accessed through the Market observation Post System website.
(u) Non-operating income and expenses
(i)
Interest income
The interest income for the years ended December 31, 2022 and 2021, were as follows:
Interest income from bank deposits
Interest income from financial assets measured at
amortized cost
2022
2021
$
$
283,350
83,963
367,313
18,611
26,434
45,045
(ii) Other income
The other income for the years ended December 31, 2022 and 2021, were as follows:
Dividend revenue
Government grants
Rental revenue
Other revenue
(iii) Other gains and losses
2022
2021
$
$
60,493
107,861
16,993
148,964
334,311
65,011
73,055
11,278
198,655
347,999
The other gains and losses for the years ended December 31, 2022 and 2021, were as follows:
Gains (losses) on financial assets and liabilities at fair
value through profit or loss, net
Foreign currency exchange gains (losses), net
Others
2022
2021
$
$
(17,430)
818,212
(10,013)
790,769
14,212
577,882
(729)
591,365
(v)
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, 2022
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities–current and
non-current
December 31, 2021
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities–current and
non-current
$
83,593,579
154,182,423
13,119,799
(83,593,579)
(154,182,423)
(13,119,799)
(72,368,579)
(154,182,423)
(13,119,799)
(5,400,000)
(5,825,000)
-
-
-
-
1,040,980
$ 251,936,781
(1,072,067)
(251,967,868)
(262,093)
(239,932,894)
(297,430)
(5,697,430)
(512,544)
(6,337,544)
$ 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)
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, 2022
Exchange
rate
Foreign
currency
TWD
December 31, 2021
Exchange
rate
Foreign
currency
TWD
$ 7,083,219
30.71
217,525,655 10,410,005
27.68
288,148,938
652,264
0.8882
579,341
842,184
0.8261
695,728
6,429,305
30.71
197,443,957 10,373,943
27.68
287,150,742
Financial assets
Monetary items
USD to TWD
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,
2022 and 2021, 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, 2022
December
31, 2021
$
1,004,085
49,910
(1,004,085)
(49,910)
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, 2022
and 2021, the foreign exchange gains, including both realized and unrealized, amounted
to $818,212 and $577,882, 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, 2022 and 2021, 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
2022
2021
$
28,128
(28,128)
(18,994)
18,994
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, 2022
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
$
249,567
-
Stocks listed on domestic markets
1,688,060
1,688,060
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
579,341
782,312
84,127
16,091,084
19,224,924
579,341
-
-
-
-
-
-
-
-
249,567
249,567
-
-
782,312
84,127
1,688,060
579,341
782,312
84,127
16,091,084
-
16,091,084
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
56
December 31, 2022
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
30,965,694
153,667,347
13,277,948
3,862,484
506,040
202,279,513
$ 221,754,004
$ 53,068,579
78,000,744
76,181,679
13,119,799
1,040,980
19,300,000
11,225,000
4,598
$ 251,941,379
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
57
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
58
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 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, 2022
and 2021.
(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, 2022 and 2021, were
as follow:
Financial assets at
fair value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Total
Balance on January 1, 2022
$
222,303
795,967
1,018,270
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds of capital reduction of investment
Balance on December 31, 2022
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
$
$
$
-
-
-
-
-
(17,430)
44,694
249,567
158,769
8,535
54,999
222,303
-
-
(166,248)
248,758
(10,028)
(2,010)
866,439
869,099
(233,782)
169,152
(8,502)
795,967
(17,430)
(166,248)
293,452
(10,028)
(2,010)
1,116,006
1,027,868
8,535
(233,782)
224,151
(8,502)
1,018,270
For the years ended December 31, 2022 and 2021, 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”)
$
$
2022
2021
(17,430)
8,535
(169,524)
(233,651)
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
60
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 (2.04~2.89
and 3.56~11.62,
respectively, on
December 31, 2022 and
2021)
Multiples of earnings
(17.25 on December 31,
2022)
Lack-of-Marketability
discount rate
(40%~65% and
40%~85%, respectively,
on December 31, 2022
and 2021)
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
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
Input
Price-Book ratio
multiples
December 31, 2022
Financial assets at
fair value through
other comprehensive
income
December 31, 2021
Financial assets at
fair value through
other comprehensive
income
Multiples of earnings
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%
5%
$
$
$
$
$
6,617
6,433
2,787
3,428
2,771
3,628
14,252
12,651
750
909
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.
(w) 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,
2022 and 2021, the guarantees provide to the subsidiaries amounted to $149,014 and
$413,781, 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)(l) and (6)(m) for unused credit lines of short-term
and long-term borrowings as of December 31, 2022 and 2021.
(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.
(x) 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, 2022 and 2021, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December 31,
2022
$ 263,238,657
December
31, 2021
335,987,949
$ 379,533,411
447,348,214
69%
75%
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, 2022, there were no changes in the Company’ s approach of capital
management.
(y)
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, 2022 and 2021 were acquisition of right-of-use assets by leasing, please
refer to note (6)(k).
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,
2022
78,967,920
24,300,000
1,349,136
170
Cash flow
(25,899,341)
6,225,000
(439,591)
4,428
Other non-
cash
changes
-
-
131,435
-
December
31, 2022
53,068,579
30,525,000
1,040,980
4,598
$ 104,617,226
(20,109,504)
131,435
84,639,157
$
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
(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
Rayonnant Technology Co., Ltd. (“Rayonnant Technology”)
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
65
HengHao Technology Co., Ltd. (“HengHao”)
Name of related party
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
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”)
Compower Global Service Co., Ltd. (“CGS”)
Compal Investment (Jiansu) Co., Ltd. (“CIJ”)
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
66
Compal Display Electronics (Kunshan) Co., Ltd. (“CDE”)
Name of related party
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
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”)
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
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”)
Exquisite Electronic Co., Ltd. (“Exquisite”)
Tatung Home Appliances (Wujiang) Co., Ltd. (“THAC”)
Tatung Technology of Japan Co., Ltd. (“TTJC”)
Intelligent Universal Enterprise Ltd. (“IUE”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
67
Name of related party
Goal Reach Enterprises Ltd. (“Goal”)
Compal (Vietnam) Co., Ltd. (“CVC”)
Relationship with the
Company
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”)
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”)
Aco Smartcare Co., Ltd. (“Aco Smartcare”)
Starmems Semiconductor Corp. (“Starmems Semiconductor”)
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
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”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
68
Compal USA (Indiana), Inc. (“CIN”)
Name of related party
Relationship with the
Company
The Company’s subsidiary
Compal Ruifang Health Assets Development Corporation (“Compal
The Company’s subsidiary
Ruifang”)
Poindus Systems Corp, Ltd. (“Poindus Systems”)
Poindus Investment Co., Ltd. (“Poindus Investment”)
QiJie Electronics (ShenZhen) Co., Ltd. (“QiJie”)
Poindus Systems UK Limited (Poindus UK)
Adasys GmbH Elektronische Komponenten (Adasys)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Poindus Systems GmbH GroBhandel mit EDV. Oberursel (Poindus GmbH)
The Company’s subsidiary
Compal Connector Manufacture Ltd. (“CCM”)
A joint venture company
Compal Precision Module (Jiangsu) Co., Ltd. (“CPM”)
Changbao Electronic Technology (Chongqing) Co., Ltd. (“Changbao”)
Avalue
Crownpo Technology Inc. (“Crownpo”)
Allied Circuit
LIZ Electronics (Kunshan) Co., Ltd. (“LIZK”)
LIZ Electronics (Nantong) Co., Ltd. (“LIZN”)
ARCE Therapeutics Co., Ltd. (“ARCE”)
Raypal Biomedical Co., Ltd. (“Raypal”)
Hong Ya Technology Corporation (“Hong Ya Technology”)
Kinpo Group Management Consultant Company (“Kinpo Group
Management”)
AcBel Polytech Inc. (AcBel) and its subsidiaries (“AcBel”)
An associate
An associate
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
Cal-Comp Electronics (Thailand) Public Company Limited (“Cal-Comp”)
The same Chairman of the Board
Kinpo Electronics, Inc. (“Kinpo”)
(b) Transactions with key management personnel
Key management personnel remunerations comprised:
Short-term employee benefits
Post-employment benefits
There are no termination benefits and other long-term benefits.
with the Company
The same Chairman of the Board
with the Company
2022
478,681
5,925
484,606
$
$
2021
598,395
5,643
604,038
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
69
(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
2022
6,778,358
$
2021
1,777,777
171
-
190
30,429
$
6,778,529
1,808,396
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
2022
2021
$ 129,409,933
175,003,681
249,433,436
241,832,462
378,843,369
416,836,143
633
31,370,385
1,309
568,440
$ 410,214,387
417,405,892
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,
2022 and 2021, amounted to $316,155 and $265,455, respectively. As of December 31, 2022
and 2021, the unpaid warranty service expenses were record as other payables.
(iv) Technical service expense
The Company engaged its subsidiaries to research and develop of notebooks, and the related
technical service expenses for the years ended December 31, 2022 and 2021, amounted to
$203,283 and $199,811, respectively. As of December 31, 2022 and 2021, the unpaid technical
service expenses were recorded as other payables.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
70
(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 equipment, mold and others on behalf of
the related parties as of December 31, 2022 and 2021, were as follows:
Account
Related party
categories
December
31, 2022
December
31, 2021
Notes and accounts receivable
Subsidiaries
$
8,934,638
Notes and accounts receivable
Other related parties
Other receivables
Other receivables
Other receivables
Other receivables
Subsidiaries - UCGI
Subsidiaries - Others
Associates
Other related parties
4,370,909
195,183
24,710
1,321
-
1,001,098
1,697,684
161,863
10,649
2,463
45
Less: Credit balance of investments
accounted for using the equity
method
13,526,761
2,873,802
(27,599)
(40,400)
$
13,499,162
2,833,402
As of December 31, 2022 and 2021, 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, 2022 and 2021, were as follows:
Account
Notes and accounts payable
Related party
categories
Subsidiaries - CIT
December
31, 2022
32,506,355
$
December
31, 2021
38,910,233
Notes and accounts payable
Subsidiaries - Others
35,192,564
52,043,163
Notes and accounts payable
Associates
493
Notes and accounts payable
Other related parties
8,482,267
Other payables
Other payables
Subsidiaries
Other related parties
206,212
20,327
315
541,226
167,250
-
$
76,408,218
91,662,187
(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 1.85%~5.00%, and the Company had
assessed that no bad debt expenses should be recognized. As of December 31, 2022 and 2021,
the loans due to related parties were recorded as other receivables.
Account
Related party
categories
December
31, 2022
December
31, 2021
Subsidiaries - CEB
$
767,750
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Less: Credit balance of investments
accounted for using the equity
method
Subsidiaries - CEA
Subsidiaries - HengHao
Subsidiaries - UCGI
Subsidiaries - Kimpo &
Compal Assets
Development
1,381,950
200,000
230,000
553,600
830,400
200,000
224,560
600,000
-
(200,000)
(200,000)
$
2,979,700
1,608,560
As of December 31, 2022 and 2021, 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, 2022 and 2021, the guarantees provided to subsidiaries were $149,014
and $413,781, respectively.
(8) Pledged assets: None.
(9) Commitments and contingencies:
The details of commitments and contingencies were as follows:
(a) Huawei Technologies Co., Ltd. filed an infringement litigation against the Group on October 28,
2022. The Group will carefully evaluate the litigation, discuss with related client for the following
strategies and actions, and engage professional attorneys, to protect the rights and reputation of the
Company from any damage.
(b)
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
72
(c) The Company entered into various patent license agreements with third parties, and was required to
make royalty payments of a predetermined amount periodically.
(10) Losses due to major disasters: None
(11) Subsequent events: None
(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
1,171,256
87,235
32,961
-
145,492
158,378
10,331
2022
Operating
expenses
10,508,656
705,361
397,839
49,668
456,164
673,962
449,810
Total
Operating
costs
11,679,912
792,596
430,800
49,668
601,656
832,340
460,141
980,082
93,355
33,341
-
158,665
181,888
6,235
2021
Operating
expenses
9,893,755
674,677
365,173
81,349
437,831
683,706
479,192
Total
10,873,837
768,032
398,514
81,349
596,496
865,594
485,427
For the years ended December 31, 2022 and 2021, 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
$
$
$
9,066
11
1,491
1,290
%6.26
-
8,965
11
1,411
1,214
%3.32
-
2022
2021
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
73
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, 2022:
(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, 2022 (excluding investment in subsidiaries, associates and
joint ventures): Please refer to Table 3
(iv)
Individual securities acquired or disposed of with accumulated amount exceeding the lower of
NT$300 million or 20% of the capital stock: Please refer to Table 4
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or
20% of the capital stock: Please refer to Table 5
(vi) Disposals of individual real estate with amount exceeding the lower of NT$300 million or 20%
of the capital stock: None.
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of
NT$100 million or 20% of the capital stock: Please refer to Table 6
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 7
(ix) Trading in derivative instruments: None.
(b)
Information on investees: Please refer to Table 8
(c)
Information on investment in mainland China: Please refer to Table 9
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Consolidated Financial Statements
74
(d) Major shareholders:
Shareholder’s Name
Cathay MSCI Taiwan ESG Sustainability High Dividend
Yield ETF
Shareholding
Shares
Percentage
269,519,000
%6.11
Note 1: The information on major shareholders, which is provided by the Taiwan Depository &
Clearing Corporation, summarized the shareholders who held over 5% of total non-physical
common stocks and preferred stocks (including treasury stocks) on the last business date of
each quarter. The registered non-physical stocks may be different from the capital stocks
disclosed in the financial statement due to different calculation basis.
Note 2: If shares are entrusted, the above information regarding such shares will be revealed by
each trustors of individual trust account. The shareholders holding more than 10% of the
total shares of the company should declare insider’ s equity according to Securities and
Exchange Act. The numbers of the shares declared by the insider include the shares of the
trust assets which the insider has discretion over use. For details of the insider’ s equity
announcement please refer to the TWSE website.
(14) Segment information:
Please refer to the consolidated financial report of 2022.
COMPAL ELECTRONICS, INC.
Statement of cash and cash equivalents
December 31, 2022
(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$861,866,942 and others)
Time deposits
Foreign currency (USD$20,000,000, Maturity date: 2023.1.9, Rate:
4.35%)
Foreign currency (CNY$8,800,000, Maturity date: 2023.1.6~
2022.3.15, Rate: 1.40%~2.28%)
75
$
Amount
3,504
690,284
26,493,611
27,183,895
614,200
38,791
652,991
Cash equivalents:
Bonds purchased
under resale
agreements
Total
TWD (Maturity date: 2023.1.3~2023.1.9, Rate: 0.80%~0.88%)
1,896,442
Foreign currency (US$40,015,055.68, Maturity date: 2023.1.3~
2023.1.4, Rate: 4.60%~4.70%)
1,228,862
3,125,304
$
30,965,694
Note: The exchange rate is 30.71 New Taiwan dollars for 1 US Dollar; 4.408 New Taiwan Dollars for 1 CNY.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of notes and accounts receivable
December 31, 2022
(Expressed in thousands of New Taiwan Dollars)
76
Item
Description
Sales of non-related parties
Amount
114,331,296
$
D Company
E Company
B Company
Others (Note)
Less: allowance for uncollectible accounts
Notes and accounts receivable, net
〃
〃
〃
19,777,943
9,591,155
29,700,918
173,401,312
(3,642,881)
$
169,758,431
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
15,471,653
1,276,477
36,316,027
$
53,064,157
Net Realizable
Value
15,813,564
1,276,477
36,316,027
53,406,068
(Continued)
Statement of changes in accumulated impairment of investments accounted for using the equity method
COMPAL ELECTRONICS, INC.
For the year ended December 31, 2022
(Expressed in thousands of New Taiwan Dollars; thousands of shares)
Beginning Balance
Increase (Note 1)
Decrease (Note 2)
Ending Balance (including impairment loss)
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
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
9,100
600
100,000
20,000
3,500
52,500
3,446
-
-
-
-
Number of
shares
-
-
-
-
-
-
-
-
-
11,768
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,000
35
1,200
Number of
shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29,000
-
-
-
-
-
-
-
-
-
-
-
-
Amount
-
66,218
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38,173
5,096
3,031
100,000
353,046
805
27,158
1,346
11,625
2,748
199,999
1,174
700
15,545
54,000
880,664
880,664
Amount
-
395,750
167,924
81,671
36,138
27,067
73,748
284,476
30,636
36,599
38,513
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,983
18,102
145
-
-
-
-
-
-
-
-
-
1,194,752
(7,274,986)
-
-
(6,080,234)
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
11,768
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
1,000
10,000
21,756
15,035
9,100
600
100,000
20,000
3,500
52,500
4,646
-
-
-
10,180
(377,252)
(43,156)
1,030,304
-
127,886
97,275
42,400
(60)
(1,196)
112,728
3,410
(325,694)
(31,576)
378,755
(152,120)
218,225
-
(24,531)
106
32,532
32,813
(231,377)
(5,762)
(23,440)
582,505
(16,105)
301,896
(17,399)
20,384
11,842
118,990
(134,458)
33,407
84,921
(83)
3,547
26,334
40,421
(65)
(23,883)
576
(12,973)
(20,601)
(3,816)
(8,981)
(19,538)
(11,348)
1,826,023
-
-
-
1,826,023
(8,837)
(722,859)
(96,271)
(115,989)
(287,429)
(15,090)
615
99
(15)
(97)
(15,153)
(26,924)
(1,883)
5,320
(448,211)
(79,364)
3
(245)
2,962
10,119
(79,441)
(10,568)
307,527
24,298
232,641
(11,897)
(3,085)
(102,515)
(87,570)
(81,066)
506
-
-
-
-
-
-
-
-
-
-
-
-
-
8,354
-
-
-
(1,602,065)
158,398
5,688,229
10,461,265
42,681,945
3,906,656
2,063,087
1,168,785
374,329
99,940
324,783
438,890
467,514
425,647
42,912
2,662,827
4,958,349
313,063
(3)
627,803
4,882
197,685
277,615
(718,080)
32,062
(17,031)
8,257,996
1,381,132
7,434,250
84,482
122,458
875,954
730,872
(261,818)
850,799
1,612,866
162,613
112,687
262,227
371,580
15,999
34,975
3,696
44,330
23,708
84,075
24,990
505,547
186,922
99,563,892
(1,602,065)
(881,247)
(10,157)
97,070,423
149,561
4,965,370
10,364,994
42,565,956
3,619,227
2,047,997
1,169,400
374,428
99,940
324,768
438,793
452,361
398,723
41,029
2,668,147
4,510,138
233,699
627,558
4,882
200,647
287,734
(797,521)
32,062
(27,599)
8,565,523
1,405,430
7,666,891
84,482
122,458
864,057
727,787
(364,333)
763,229
1,531,800
162,613
112,687
262,227
371,580
16,505
34,975
3,696
44,330
23,708
92,429
24,990
505,547
186,922
97,961,827
(881,247)
(10,157)
97,070,423
227,599
961,854
98,259,876
-
-
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
240,400
468,948
88,992,850
77
Market Price /
Net Value
149,561
5,114,685
10,364,994
42,553,108
3,619,227
2,137,738
1,169,400
374,428
99,940
287,708
1,031,010 (Note 4)
452,361
398,723
41,029
3,952,841 (Note 3)
4,510,138
233,699
-
746,847 (Note 3)
6,042
200,647
287,734
(797,521)
32,062
(27,599)
8,565,523
1,405,430
7,666,891
84,482
122,458
864,057
1,214,819 (Note 4)
(364,333)
763,229
1,531,800
162,613
112,687
262,227
261,192
16,505
22,501
3,696
16,517
14,836
92,429
24,990
505,547
71,343
Investee Company
Auscom
Panpal
Just
CIH
CEH
Gempal
Hong Ji
Hong Jin
Compal Ruifang
Poindus Systems
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
$
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, 2022.
Note 4：The unit price is calculated by the closing price of Taipei Exchange as of December 31, 2022.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of financial assets measured at fair value through other
comprehensive income - non-current
For the year ended December 31, 2022
(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 $ 2,003,307
Number of
Shares
-
Amount
-
Number of
Shares
-
Amount
328,716
Number of
Shares
124,044
Amount
1,674,591
Cal-Comp Electronics (Thailand) Public Co., Ltd.
259,600
695,728
21,633
Taiwan Star
Others
Total
98,046
441,993
-
367,069
-
-
$ 3,508,097
-
-
258,174
258,174
-
-
-
116,387
281,233
579,341
23,335
98,046
418,658
163,993
632,431
-
461,250
3,133,840
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, and unrealized gains on
financial instruments at fair value.
Note 2: Decrease included disposal of financial assets at fair value through other comprehensive income, the adjustment of the unrealized loss of financial assets according to fair value,
deferred tax for unrealized losses, and 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, 2022
(Expressed in thousands of New Taiwan Dollars)
79
Please refer to Note (6)(j).
Statement of short-term borrowings
December 31, 2022
Creditor
China Construction Bank
Description
Credit Loans
Corporation
Citibank
Bank of Communications
Co., Ltd.
The bank of Tokyo-
Mitsubishi UFJ
United Overseas Bank
Sumitomo Mitsui Banking
Corporation
Cathay United Bank
Land Bank of Taiwan
Taishin Internation Bank
BNP Paribas Bank
HSBC Bank (Taiwan)
Limited
The Hongkong and
Shanghai Banking
Corporation Limited
Bank of China
Shin Kong Bank
Banco Bilbao Vizcaya
Argentaria Bank
〃
〃
〃
〃
〃
〃
″
〃
〃
〃
〃
〃
〃
〃
Contract
Period
2022.10~2023.01
2022.10~2023.01
2022.10~2023.01
2022.10~2023.04
2022.11~2023.01
2022.11~2023.02
2022.12~2023.02
2022.12~2023.01
2022.10~2023.01
2022.09~2023.03
2022.11~2023.02
2022.12~2023.02
2022.11~2023.02
2022.11~2023.02
2022.09~2023.03
Interest Rate
Note
Loan
Commitments
6,142,000
$
Collaterals or
Pledged Assets
None
Ending
balance
6,142,000
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
9,059,450
6,142,000
None
None
3,685,200
4,742,300
6,142,000
None
6,074,250
4,606,500
7,677,500
5,527,800
6,000,000
5,000,000
3,071,000
1,842,600
None
None
None
None
None
None
None
4,606,500
2,453,729
3,721,000
3,071,000
1,842,600
1,800,000
1,830,000
4,760,050
None
1,300,000
6,756,200
1,500,000
6,449,100
None
None
None
4,000,000
1,500,000
6,300,000
$
80,676,200
53,068,579
Note: The range of interest rates of aforementioned loans were 1.45%~5.38%.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of notes and accounts payable
December 31, 2022
(Expressed in thousands of New Taiwan Dollars)
80
Amount
$
25,027,877
10,462,714
7,208,570
6,129,776
5,003,108
4,375,011
19,793,688
$
78,000,744
Suppliers
E Company
J Company
A Company
I Company
D Company
B 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, 2022
(Expressed in thousands of New Taiwan Dollars)
81
Creditor
Bank of Taiwan
Loan
Commitments
5,000,000
$
Loan within
1 year
1,000,000
Loan more
than 1 year
3,500,000
Contract
Period
2022.11~2024.12
Interest
Rate
註
Amount
4,500,000
Collaterals or
Pledged Assets
None
Amount
Yuan Ta Commercial Bank
3,000,000
3,000,000
Mizuho Bank, Ltd.
9,827,200
9,000,000
-
-
2022.12~2023.03
2022.11~2023.02
Note
3,000,000
E.SUN Commercial Bank
2,000,000
-
1,900,000
2021.11~2024.11
Shanghai Commercial and
2,300,000
2,300,000
-
2020.06~2023.06
Savings Bank
Far Eastern International
1,000,000
-
1,000,000
2022.11~2025.09
Bank Co., Ltd.
CTBC Bank Co., Ltd.
2,000,000
2,000,000
-
2020.11~2023.11
Taiwan Corporative Bank
Chang Hwa Bank
1,000,000
3,000,000
-
-
1,000,000
2022.05~2025.05
3,000,000
2022.05~2026.05
Bank of America
5,067,150
2,000,000
-
2022.09~2023.09
Bank SinoPac Co., Ltd.
3,300,000
-
825,000
2022.12~2026.12
$
37,494,350
19,300,000
11,225,000
Note: The range of interest rates of aforementioned loans were 1.48%~2.06%.
9,000,000
1,900,000
2,300,000
None
None
None
None
1,000,000
None
2,000,000
1,000,000
3,000,000
2,000,000
825,000
30,525,000
None
None
None
None
None
〃
〃
〃
〃
〃
〃
〃
〃
〃
Discount
rate
Item
Buildings
Vehicles
Less：Current portion
Lease liabilities–Non-
Current
Statement of lease liabilities
Description
For office and factory space
Lease term
1~10 years
1.20%~1.60% $
Ending balance
1,035,781
For operating activities
3~5 years
1.20%~1.60%
5,199
1,040,980
(249,553)
$
791,427
(Continued)
COMPAL ELECTRONICS, INC.
Statement of other payables
December 31, 2022
(Expressed in thousands of New Taiwan Dollars)
82
Item
Payroll payables and year-end
Description
Payroll for December 2022, estimated year-end bonuses
Amount
$
4,416,138
bonuses payable
for 2022, 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, 2022
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.
1,213,982
1,289,536
6,200,143
$
13,119,799
Amount
$ 1,004,056,566
607,561
(1,066,520)
(1,354,915)
1,002,242,692
1,400,099
$ 1,003,642,791
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating costs
For the year ended December 31, 2022
(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
Others
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
$
55,216,445
565,105,897
(40,296,164)
(38,882)
(4,776,463)
(786,169)
(1,766)
574,422,898
605,349
1,249,803
576,278,050
1,189,112
33
(1,276,477)
(50,981)
576,139,737
7,603,013
394,536,527
1,619,273
(15,479,353)
(2,723)
(528,474)
963,888,000
4,632,936
4,776,463
937,684
839,873
$ 975,074,956
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating expenses
For the year ended December 31, 2022
(Expressed in thousands of New Taiwan Dollars)
84
Item
Payroll expenses
Export expenses
Research expenses
Shipping expenses
Sample expenses
Others (Note)
Total
Selling
expenses
Administrative
expenses
Research and
development
expenses
$
364,618
314,281
-
4,745,014
434,551
352,878
$
6,211,342
1,664,466
8,479,572
-
-
-
37,378
1,129,561
2,831,405
-
1,558,147
2,133
649
2,222,564
12,263,065
Note: The amount of each item in others does not exceed 5% of the account balance.
(Continued)
Table 1 Loans to other parties:
(December 31, 2022)
Name of
lender
No.
0 The
Company
Name of
borrower
UCGI
0 The
HengHao
Company
0 The
CEB
Company
0 The
Company
Kinpo &
Compal
Group Assets
Development
Corporation
0 The
CEA
Company
1 CIH
CEP
2 CPC
CIC
Account
name
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
3 CIT
CCI Nanjing Other
receivables
Rayonnant
(Taicang)
Other
receivables
3 CIT
3 CIT
4 CPO
HengHao
Kunshan
HengHao
Kunshan
4 CPO
CIT
5 CET
BT
6 Panpal
6 Panpal
Kinpo &
Compal
Group Assets
Development
Corporation
HengHao
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
6 Panpal
Ray-Kwong
Medical
Other
receivables
7 CIC
HengHao
Kunshan
Other
receivables
8 BSH
CIN
9 Gempal
9 Gempal
10 Hong Ji
Kinpo &
Compal
Group Assets
Development
Corporation
Ray-Kwong
Medical
Management
Consulting
Kinpo &
Compal
Group Assets
Development
Corporation
11 CGSP
CEP
12 Arcadyan Acradyan
Brasil
12 Arcadyan Acradyan
Brasil
12 Arcadyan Acradyan
Brasil
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
12 Arcadyan Arcadyan
Vietnam
Other
receivables
12 Arcadyan Arcadyan
Vietnam
Other
receivables
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Highest
balance of
financing to
other parties
during the
period
466,958
Related
party
Y
Actual
usage
amount
during the
period
230,000
Ending
balance
230,000
Range of
interest rates
during the
period
Purposes of
fund
financing for
the borrower
1.67%~3.5% Short-term
financing
Transaction
amount for
business
between two
parties
-
Reasons for
short-term
financing
Operating
demand
Allowan
ce for
bad debt
-
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
1.85%
1,399,775
767,750
767,750
1.02%~5%
600,000
600,000
600,000
1.85%
2,347,875
1,381,950
1,381,950
1.02%~5%
64,430
61,420
61,420
5.05%
450,600
440,800
440,800
2.20%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
4,510,100
2,149,700
1,781,180
3.5%~5.05% Short-term
financing
80,538
76,775
-
5.05%
966,450
921,300
921,300
5.05%
1,047,900
-
-
3.50%
675,900
661,200
661,200
2.20%
270,360
264,480
176,320
2.00%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
1,200,000
600,000
600,000
1.67%~1.85% Short-term
financing
1,200,000
600,000
600,000
1.53%~1.85% Short-term
financing
10,000
-
-
1.53%
Short-term
financing
2,406,825
1,689,050
1,689,050
3.5%~5.05% Short-term
financing
579,870
552,780
337,810
5.05%
Short-term
financing
1,000,000
600,000
600,000
1.67%~1.85% Short-term
financing
20,000
10,000
10,000
1.85%
Short-term
financing
200,000
-
64,430
61,420
35,867
59,880
-
-
-
-
-
-
64,300
61,420
42,994
5.00%
280,250
-
321,500
307,100
-
-
1.00%
1.00%
1.67%
Short-term
financing
5.05%
Short-term
financing
1.00%
1.00%
Short-term
financing
Short-term
financing
Short-term
financing
Transaction
for business
between two
parties
Transaction
for business
between two
parties
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
financing
Operating
financing
Operating
financing
4,821,470
14,679,380
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
85
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
23,258,950
Maximum
limit of fund
financing
46,517,901
Note
(Note 1)
23,258,950
46,517,901
(Note 1)
23,258,950
46,517,901
(Note 1)
600,044
46,517,901
(Note 1)
23,258,950
46,517,901
(Note 1)
42,553,108
42,553,108
(Note 2)
2,589,107
2,589,107
(Note 3)
25,750,769
25,750,769
(Note 4)
25,750,769
25,750,769
(Note 4)
25,750,769
25,750,769
(Note 4)
3,047,746
3,047,746
(Note 5)
3,047,746
3,047,746
(Note 5)
4,960,064
4,960,064
(Note 6)
2,045,874
2,045,874
(Note 7)
2,045,874
2,045,874
(Note 7)
18,190
2,045,874
(Note 7)
10,388,018
10,388,018
(Note 8)
8,034,374
8,034,374
(Note 9)
855,095
855,095
(Note 10)
18,190
855,095
(Note 10)
467,760
467,760
(Note 11)
92,429
92,429
(Note 12)
2,761,448
5,522,896
(Note 13)
2,761,448
5,522,896
(Note 13)
2,761,448
5,522,896
(Note 13)
2,761,448
5,522,896
(Note 13)
2,761,448
5,522,896
(Note 13)
(Continued)
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 1 Loans to other parties:
(December 31, 2022)
86
Name of
lender
Name of
borrower
No.
12 Arcadyan Arcadyan RU Other
Account
name
Highest
balance of
financing to
other parties
during the
period
32,150
Related
party
Y
Actual
usage
amount
during the
period
-
Range of
interest rates
during the
period
1.00%
Ending
balance
-
13 Arcadyan
CNC
Holding
14 Poindus
Systems
Adasys
receivables
Other
receivables
Other
receivables
14 Poindus
Systems
Poindus UK Other
receivables
14 Poindus
Systems
Poindus UK Other
receivables
Y
Y
Y
Y
546,550
-
-
1.00%
21,268
21,268
21,268
2.00%
26,093
-
-
1.00%
24,506
24,109
24,109
1.00%
Transaction
amount for
business
between two
parties
418,792
Reasons for
short-term
financing
-
Allowan
ce for
bad debt
-
-
Operating
financing
80,428
58,395
58,395
-
-
-
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
335,034
Maximum
limit of fund
financing
5,522,896
Note
(Note 13)
2,108,499
2,108,499
(Note 14)
51,752
208,682
(Note 15)
39,102
208,682
(Note 15)
51,752
208,682
(Note 15)
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
Purposes of
fund
financing for
the borrower
Transaction
for business
between two
parties
Short-term
financing
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Note 1:
According to the Company’ s Procedures of Lending Funds to Other Parties, the total amount of loans to others shall not exceed 40% of the net worth of the Company. When a short-term financing facility
with the Company is necessary, the total amount for lending to any company shall not exceed 80% of the borrower’s net worth, nor shall it be more than 50% of the Company’s lendable amount limit, and
shall be combined with the company’s endorsements/guarantees for calculation. In addition, the total amount lendable to 100% directly or indirectly owned subsidiaries by the Company is unrestricted by the
Note 2:
Note 3:
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
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 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 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 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 Gempal’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Gempal. When a short-term financing facility with Gempal
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 Gempal’s total amount of lendable capital, and shall be combined with the
Gempal’s endorsements/guarantees for calculation. In addition, when lending to indirectly owned overseas subsidiaries or the ultimate parent company’s 100% directly, the total amount of loans is not limited
by 80% of two aforesaid restrictions, but the maximum amount shall not exceed the total amount of lendable capital of Gempal, and shall be combined with the company’s endorsements/guarantees for the
borrower when calculating.
According to Hong Ji’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of Hong Ji. When a short-term financing facility with Hong Ji
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 Hong Ji’s total amount of lendable capital, and shall be combined with the
Hong Ji’s endorsements/guarantees for calculation. In addition, when lending to indirectly owned overseas subsidiaries or the ultimate parent company’s 100% directly, the total amount of loans is not limited
by 80% of two aforesaid restrictions, but the maximum amount shall not exceed the total amount of lendable capital of Hong Ji, and shall be combined with the company’s endorsements/guarantees for the
borrower when calculating.
According to CGSP’s Procedures for Lending Funds to Other parties, the total amount of loans to others shall not exceed 40% of the net worth of CGSP. When a short-term financing facility with CGSP 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 CGSP’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 CGSP, 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 Poindus Systems’ Procedures for Lending Funds to Other parties, the total amount of loans for individual is the lower of the amount of transaction for business between the two parties during
the previous twelve months and 10% of the net worth of the company's latest financial statements, with the total limit of 40% of the net worth of the company's latest financial statements.
The transactions had been eliminated in the consolidated financial statements.
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Note 10:
Note 11:
Note 12:
Note 13:
Note 14:
Note 15:
Note 16:
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 2 Guarantees and endorsements for other parties:
(December 31, 2022)
Counter-party of guarantee
and endorsement
Name of
guarantor
No.
0 The Company CEP
Name
Limitation on
amount of
guarantees and
endorsements
for a specific
enterprise
29,073,688
Relationship
with the
Company
(Note 4)
Highest balance
for guarantees
and
endorsements
during the
period
Balance of
guarantees and
endorsements
as of reporting
date
Actual usage
amount during
the period
95,386
61,146
61,146
Ratio of
accumulated
amounts of
guarantees and
endorsements to net
worth of the latest
financial statements
0.05%
Property
pledged for
guarantees and
endorsements
(Amount)
-
Maximum
amount
for guarantees
and endorsements
(Note 1(cid:501)2)
58,147,377
Parent
company
endorsements/g
uarantees to
third parties on
behalf of
subsidiary
Y
Subsidiary
endorsements/g
uarantees to
third parties on
behalf of parent
company
-
Endorsements/
guarantees to
third parties on
behalf of
companies in
Mainland
China
-
(In Thousands of New Taiwan Dollars)
87
0 The Company CEB
(Note 5)
29,073,688
132,082
61,420
61,420
0 The Company CEA
(Note 5)
29,073,688
193,973
-
-
0 The Company HengHao
Kunshan
(Note 5)
29,073,688
27,036
26,448
26,448
1 Arcadyan
Arcadyan AU
(Note 5)
1,840,965
241,125
230,325
2 Poindus
Systems
Qijie
(Note 5)
104,341
32,325
30,710
-
-
-
-
-
-
-
0.05%
58,147,377
0.00%
58,147,377
0.02%
58,147,377
1.67%
5,522,896
5.98%
260,852
Y
Y
Y
Y
Y
-
-
-
-
-
-
-
Y
-
Y
Note 1:
Note 2:
Note 3:
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.
According to Poindus Systems’ Procedures for Endorsement and Guarantee, Poindus Systems only endorses and guarantees to subsidiaries wherein it holds 100% of their voting shares. Poindus Systems’ endorsement and
guarantee for a subsidiary shall not exceed 20% of its net worth; and the total amount of endorsements/guarantees shall not exceed 50% of its net worth.
Note 4: Subsidiary whose over 50% common stock is directly owned.
Note 5: Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 3 Securities held as of December 31, 2022 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2022)
88
Name of
holder
Category and name of security
The Company Taiwan Star
Relationship with security
issuer
(cid:4137)
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)
(cid:4137)
Kinpo
Cal-Comp
HWA VI Venture Capital Corp.
HWA Chi Venture Capital Corp.
mProbe Ltd.
Chen Feng Optoelectronics
PrimeSensor Technology Inc.
Ganzin Technology, Inc.
Genovior Biotech Crop.
Airoha Technology Corp.
Clean Energy Fund
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
Lian Hong Art. Co., Ltd.
Taiwan Biotech Co., Ltd.
The Chairman of the Board is
the first degree of kinship of the
Chairman of the Company
(cid:4137)
(cid:4137)
Others
Total
Gempal
Compal Electronics, Inc.
The parent company
Lian Hong Art. Co., Ltd.
Others
Total
(cid:4137)
(cid:4137)
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 other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non current
Financial assets at fair value
through profit or loss-non current
Financial assets at fair value
through profit or loss-non current
Financial assets at fair value
through profit or loss 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
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
418,658
Holding
percentage
(%)
2%
Fair value
Note
418,658
124,044
1,674,591
8%
1,674,591
281,233
579,341
5%
579,341
290
22,571
10%
22,571
53
11,112
11%
11,112
4,000
13,040
3%
13,040
6,685
101,676
7%
101,676
868
19,638
1%
19,638
2,000
36,000
7%
36,000
3,846
9,000
2%
9,000
215
114,137
(cid:4137)
114,137
(cid:4137)
132,417
2%
132,417
5,000
54,150
8%
54,150
6,000
63,000
19%
63,000
134,076
134,076
___________
3,383,407
31,648
729,488
1%
729,488
69,370
936,490
5%
936,490
54,000
694,440
5%
694,440
5,677
169,449
1%
169,449
2,225
67,470
6%
67,470
7,845
141,204
3%
141,204
14,215
14,215
___________
2,752,756
18,369
423,413
(cid:4137)
423,413
2,225
67,450
6%
67,450
1,371
1,371
___________
492,234
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 3 Securities held as of December 31, 2022 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2022)
89
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.
Mactech
HHB
Total
Taichung International Golf
Country Club
HWALLAR OPTRONICS
(Fuzhou) CO., LTD.
Mithera
Beyond Limits, Inc.
BT
CIT
BSH
Suzhou Genki Fuhong Health
Management Co., Ltd.
Kunqiao Phase II (Suzhou) Emerging
Industry Venture Capital Partnership
Fund
Achi Capital Partners Fund LP
(cid:4137)
(cid:4137)
(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
(cid:4137)
Note
(Note 1)
332
200
1,152
349
60
-
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
1%
4%
5%
5%
14%
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(Note 1)
(Note 1)
(Note 1)
(Note 1)
(Note 1)
(cid:4137)
46,379
7%
46,379
1,650
46,150
5%
46,150
1,229
(cid:4137)
6%
(cid:4137)
(Note 1)
___________
92,529
11,220
(cid:4137)
11,220
-
19%
(cid:4137)
(Note 1)
873
138,195
(cid:4137)
138,195
4,414
17%
4,414
252,667
10,296
(cid:4137)
(cid:4137)
252,667
10,296
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
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 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
Note 1: The carrying value is the remaining amount after deducting accumulated impairment.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 4 Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2022)
Name of
company
Category and name of
security
Account
name
Name of
counter-party
Relationship
with the
company
Shares/
Units
Amount
Shares/
Units
Amount
Shares/
Units
Price
Cost
Gain (loss)
on disposal
Shares/
Units
Amount
Shares/
Units
Amount
Beginning Balance
Purchases
Sales
Others
Ending Balance
(In Thousands of New Taiwan Dollars/ shares)
90
Stock :
Poindus Systems
The
Company
Structured deposits :
Structured deposits–
Bank of China RMB
Strcutured Deposit
Structured deposits–
Bank of China RMB
Strcutured Deposit
Investments accounted
for using equity
method
Financial assets at fair
value through profit or
loss-current
Financial assets at fair
value through profit or
loss-current
Public buyouts
and purchases
from the open
market
Bank of China
Bank of China
Bank of Communications
Yuntong Wealth Time-type
structured deposit products
Financial assets at fair
value through profit or
loss-current
Bank of
Communications
Co., Ltd.
Structured deposits–
Bank of China RMB
Strcutured Deposit
Structured deposits–
Bank of China RMB
Strcutured Deposit
Financial assets at fair
value through profit or
loss-current
Financial assets at fair
value through profit or
loss-current
Bank of China
Bank of China
CPC
CIT
CIT
CIC
CET
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.
-
-
-
-
-
-
-
-
-
-
-
-
-
11,768
353,046
-
-
-
-
-
-
-
-
-
-
442,622
1,106,555
442,622
663,933
442,622
-
-
-
-
-
-
-
-
-
450,371
442,622
1,125,927
1,106,555
450,043
442,622
675,556
663,933
450,371
442,622
7,749
(Note 2)
19,372
(Note 2)
7,421
(Note 2)
11,623
(Note 2)
7,749
(Note 2)
-
-
-
-
-
-
(28,278)
(Note 1)
11,768
324,768
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
91
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(December 31, 2022)
Name of
company
Arcadyan
Vietnam
Name of
property
Plant,
mechanical
and electrical
equipment
Transaction
date
May 5, 2022
(Note 1)
Transaction
amount
1,437,610
Status of
payment Counter-party
657,737 Donghui Co., Ltd.
and Chengyuande
Construction and
Trade Co., Ltd.
Relationshi
p with the
Company
None
If the counter-party is a related party,
disclose the previous transfer information
Owner
Not
applicable
Relationship with
the Company
Not applicable
Date of
transfer Amount
Not
applicable
Not
applicable
References for
determining price
price comparison
and negotiation
Purpose of
acquisition
and current
condition
operational
use
Others
None
(In Thousands of New Taiwan Dollars)
Kinpo &
Compal Group
Assets
Development
Corporation
Compal
Electronics
(Vietnam)
Co., Ltd
(Note 3)
Buildings and
building
improvements
November
11, 2022
(Note 2)
In the
maximum
limit of
22,200
thousands
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
(cid:46)
Land use
rights
December 16,
2022
921,300
184,260 GREEN i-PARK
CORPORATION
None
Not
applicable
Not applicable
Not
applicable
Not
applicable
operational
use
None
Refer to the real
estate appraisal
report issued by a
professional
appraiser
Note 1:
Note 2:
Note 3:
In order to meet the operational needs, the Board of Directors of Arcadyan Vietnam resolved on May 5, 2022, to authorize the chairman of the Board to expand the plant in the maximum limit of
USD48,000. The total contract amount is expected to be 1,437,610 (VND 1,118,763 million).
In order to meet the operation planning of the group headquarter and corporate sustainable development needs, the Board of Directors of Kinpo & Compal Group Assets Development Corporation resolved
on November 11, 2022, to authorize the chairman of the Board to build a new group operation headquarters building in the maximum limit of 22.2 billion.
Compal Electronics (Vietnam) Co., Ltd (tentative name) is a newly established subsidiary of BSH 100% owned.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
92
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
The
Company
Counter
party
UCGI
CBN
Arcadyan
Nature of
relationship
Subsidiaries wholly
owned by the
Company
The Company's
subsidiaries
The Company's
subsidiaries
Purchase/
(Sale)
Sale
Sale
Sale
Transaction details
Percentage
of total
purchases/
(sales)
Amount
(221,051)
(0.0)%
(439,192)
(0.0)% Net 90 days from delivery
(4,736,735)
(0.5)% Net 60 days from the end of
the month of delivery
Payment terms
120 days
Unit price
Similar to non-
related parties
Payment Terms
There is no significant
difference
Sale
(1,190,095)
(0.1)%
120 days
Purchase
129,322,840
13.5%
120 days
Purchase
136,046,231
14.2%
120 days
Purchase
57,511,789
6.0%
120 days
Purchase
44,099,411
4.6%
120 days
Just and its
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
Purchase
11,706,241
1.2% Net 60 days from delivery Markup based on
Etrade and its
subsidiaries' cost
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
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
Percentage
of total
notes/accounts
receivable
(payable)
Note
0.0%
0.1%
0.8%
Ending
Balance
18,806
258,313
1,451,984
1,433,533
0.8%
(47,687,191)
(30.9)%
(1,721,087)
(1.1)%
(4,914,134)
(3.2)%
(8,835,507)
(5.7)%
(2,242,604)
(1.5)%
Kinpo
The same chairman of
the Company
Purchase
31,343,280
2.8% Net 35 days from the end of
the month
Similar to non-
related parties
There is no significant
difference.
(8,476,775)
(5.5)%
Just and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(136,046,231)
(99.0)%
120 days
UCGI
With the same
ultimate parent
company
Sale
(118,656)
(0.1)%
60 days
Compal Electronic,
Inc.
Parent company
Purchase
1,190,095
0.9%
120 days
CIH and its
subsidiaries
Etrade and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Purchase
389,981
0.3%
120 days
Purchase
201,643
0.2% Net 60 days from delivery According Etrade
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(129,322,840)
(92.9)%
120 days
CEA
With the same
ultimate parent
company
Sale
(405,697)
(0.3)%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
and its subsidiaries
to markup pricing
Similar to non-
related parties
Similar to non-
related parties
1,721,087
97.4%
38,621
2.2%
(1,433,533)
(4.1)%
(128,602)
(0.4)%
(117,120)
(0.3)%
47,687,191
87.4%
124,747
0.1%
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
93
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
CIH and its
subsidiaries
Counter
party
CEB
Nature of
relationship
With the same
ultimate parent
company
Purchase/
(Sale)
Sale
Transaction details
Percentage
of total
purchases/
(sales)
Amount
(219,877)
(0.2)%
Payment terms
120 days
Unit price
Similar to non-
related parties
Just and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
Rayonnant and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
HengHao
With the same
ultimate parent
company
Sale
(389,981)
(0.3)%
120 days
Sale
(3,026,857)
(2.2)%
120 days
Sale
(4,315,689)
(3.1)%
120 days
Purchase
770,541
0.8%
120 days
Purchase
420,918
0.5%
120 days
Purchase
1,147,721
1.2%
120 days
Purchase
179,199
0.2%
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
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
72,382
0.1%
128,602
0.1%
1,425,340
1.4%
4,199,215
4.2%
(32,896)
(0.0)%
(16,497)
(0.0)%
(194,275)
(0.2)%
(25,055)
(0.0)% (Note 1)
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
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
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
CPM
An associate
Purchase
2,571,306
Changbao
An associate
Purchase
944,245
Purchase
806,342
2.8%
1.0%
0.9%
120 days
120 days
120 days
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.
There is no significant
difference.
(541,816)
(176,997)
(294,099)
(0.7)%
(0.2)%
(0.4)%
Acbel and its
subsidiaries
CBN
Compal Electronic,
Inc.
BCI and its
subsidiaries
Compal Electronic,
Inc.
The Chairman of the
Board is the first
degree of kinship of
the Chairman of the
Company
Parent company
Purchase
439,192
19.0% Net 90 days from delivery
-
Parent company
Sale
(44,099,411)
(89.2)%
120 days
There is no significant
difference.
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
Adjustments will be
made based on demand
for funding
There is no significant
difference.
Markup based on
BCI and its
subsidiaries' cost
According to
markup pricing
According to
markup pricing
According to
markup pricing
Sale
(770,541)
(1.6)%
120 days
Sale
(1,365,373)
(2.8)%
120 days
(543,836)
(1.1)%
120 days
Sale
Sale
(918,657)
(1.9)%
120 days
According to
markup pricing
There is no significant
difference.
Purchase
3,026,857
7.2%
120 days
Purchase
790,403
1.9% Net 60 days from delivery
Purchase
282,287
0.7%
120 days
Purchase
446,632
Purchase
410,565
1.1%
1.0%
120 days
120 days
According to
markup pricing
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Adjustments will be
made based on demand
for funding
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Adjustments will be
made based on demand
for funding
There is no significant
difference.
There is no significant
difference.
CIH and its
subsidiaries
HSI and its
subsidiaries
CEB
CEA
CIH and its
subsidiaries
HSI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Rayonnant and its
subsidiaries
CPM
Acbel and its
subsidiaries
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
(258,313)
(31.0)%
8,835,507
27.7%
32,896
0.1%
2,409,030
7.6% (Note 1)
485,682
180,177
1.5%
0.6%
(1,425,340)
(4.7)%
(546,121)
(1.8)%
(27,686)
(0.1)%
(24,880)
(121,992)
(0.1)%
(0.4)%
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
94
Counter
party
Nature of
relationship
Company
Name
CEB
CEA
BCI and its
subsidiaries
CEA
CIH and its
subsidiaries
CEB
CIH and its
subsidiaries
BCI and its
subsidiaries
Compal Electronic,
Inc.
Etrade and its
subsidiaries
With the same
ultimate parent
With the same
ultimate parent
With the same
ultimate parent
With the same
ultimate parent
With the same
ultimate parent
With the same
ultimate parent
Parent company
Just and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
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
543,836
14.3%
Purchase/
(Sale)
Purchase
Payment terms
120 days
Purchase
1,620,529
42.7%
45 days
Purchase
219,877
5.8%
120 days
Sale
(1,620,529)
(17.3)%
45 days
Purchase
405,697
5.3%
120 days
Purchase
918,657
12.0%
120 days
Unit price
According to
markup pricing
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
According to
markup pricing
Sale
(11,706,241)
(98.2)% Net 60 days from delivery According to
markup pricing
Sale
(201,643)
(1.7)% Net 60 days from delivery According to
Purchase
1,829,041
16.9% Net 60 days from delivery
markup pricing
Similar to non-
related parties
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
(485,682)
(31.2)%
(415,662)
(26.7)%
(72,382)
415,662
(4.6)%
17.3%
(124,747)
(16.2)%
(180,177)
(23.4)%
2,242,604
101.3%
117,120
5.3%
(522,935)
(24.5)%
Payment Terms
There is no significant
difference.
There is no significant
difference.
There is no significant
difference.
There is no significant
difference.
There is no significant
difference.
There is no significant
difference.
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
Forever and its
subsidiaries
HSI and its
subsidiaries
UCGI
Avalue
With the same
ultimate parent
company
An associate
Sale
Sale
(177,383)
(31.6)%
75 days
(514,870)
(100.0)% Net 60 days from delivery
Similar to non-
related parties
There is no significant
difference.
216,768
100.0% (Note 1)
Compal Electronic,
Inc.
Just and its
subsidiaries
Parent company
Purchase
221,051
With the same
ultimate parent
company
Purchase
118,656
45.9%
24.6%
120 days
60 days
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(57,511,789)
(95.7)%
120 days
Etrade 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
CIH and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(1,829,041)
(3.0)% Net 60 days from delivery
Sale
(420,918)
(0.7)%
120 days
Sale
(790,403)
(1.3)% Net 60 days from delivery
Purchase
4,315,689
6.9%
120 days
Purchase
1,365,373
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
Similar to non-
related parties
Similar to non-
related parties
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
38,397
(18,806)
(38,621)
21.4%
(29.7)%
(61.1)%
4,914,134
26.1%
522,935
2.8%
16,497
0.1%
546,121
2.9%
(4,199,215)
(11.1)%
(2,409,030)
(6.3)% (Note 1)
Forever and its
subsidiaries
Rayonnant and
its subsidiaries
CIH and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Purchase
514,870
0.8% Net 60 days from delivery
Similar to non-
related parties
There is no significant
difference.
(216,768)
(0.6)% (Note 1)
Sale
(1,147,721)
(80.2)%
120 days
Similar to non-
related parties
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
194,275
87.4%
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2022)
95
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
Rayonnant and
its subsidiaries
Counter
party
BCI and its
subsidiaries
Nature of
relationship
With the same
ultimate parent
company
Purchase/
(Sale)
Sale
Transaction details
Percentage
of total
purchases/
(sales)
Amount
(282,287)
(19.7)%
Payment terms
120 days
Unit price
Similar to non-
related parties
HengHao
CIH and its
subsidiaries
With the same
ultimate parent
company
Sale
(179,199)
(1.8)%
120 days
Similar to non-
related parties
Arcadyan
Arcadyan
Germany
Arcadyan
USA
Arcadyan
AU
Arcadyan's subsidiary
Sale
(1,226,274)
(3.0)% Net 150 days from delivery
Arcadyan's subsidiary
Sale
(16,685,476)
(36.0)% Net 120 days from delivery
Arcadyan's subsidiary
Sale
(1,135,329)
(2.0)% Net 60 days from the end of
the month of delivery
-
-
-
Arcadyan
CNC
Arcadyan's subsidiary
Purchase
11,854,935
16.0% Net 120 days from delivery According to
Arcadyan's subsidiary
Purchase
3,412,391
5.0% Net 180 days from the end of
the month of delivery
markup pricing
According to
markup pricing
Parent company
Purchase
4,736,735
6.0% Net 60 days from the end of
-
Arcadyan
Vietnam
Compal Electronic,
Inc.
Arcadyan
Arcadyan
Arcadyan
Arcadyan
Arcadyan
CNC
Arcadyan
Vietnam
Arcadyan
Germany
Arcadyan
USA
Arcadyan
AU
Ripal
GLB
GLB
Ripal
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(11,854,935)
(100.0)% Net 120 days from delivery According to
the month of delivery
Sale
(3,412,391)
(100.0)% Net 180 days from the end of
the month of delivery
Purchase
1,226,274
100.0% Net 150 days from delivery
Purchase
16,685,476
100.0% Net 120 days from delivery
Purchase
1,135,329
100.0% Net 60 days from the end of
the month of delivery
markup pricing
According to
markup pricing
-
-
-
Sale
(134,361)
58.9% Net 60 days from the end of
the month
Purchase
134,361
43.3% Net 60 days from the end of
the month
Similar to non-
related parties
There is no significant
difference.
Similar to non-
related parties
There is no significant
difference.
Payment Terms
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
There is no significant
difference, and
adjustments will be
made based on demand
for funding if necessary
-
-
-
-
-
-
-
-
-
-
-
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, 2022 is 1,000,854 thousand dollars.
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
27,686
12.5%
25,055
1.3% (Note 1)
597,274
6.0%
4,102,435
39.0%
281,293
3.0%
(3,011,224)
(24.0)% (Note 1)
(Note 2)
- % (Note 1)
(1,451,984)
(12.0)%
3,011,224
98.0% (Note 1)
(Note 2)
- % (Note 1)
(597,274)
(100.0)%
(4,102,435)
(100.0)%
(281,293)
100.0%
19,726
50.0%
(19,726)
37.7%
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 7 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(December 31, 2022)
96
Name of Company
Counter-party
The Company
CBN
The Company
Arcadyan
The Company
Just and its subsidiaries
The Company
HSI and its subsidiaries
The Company
Cal-Comp
Just and its subsidiaries
CIH and its subsidiaries
CIH and its subsidiaries
Compal Electronic, Inc.
Compal Electronic, Inc.
CEA
Nature of
relationship
The Company's
subsidiary
The Company's
subsidiary
The Company's
subsidiary
The Company's
subsidiary
The same chairman of
the Company
Parent company
Parent company
With the same
ultimate parent
company
Ending Balance
258,313
1,451,984
1,433,533
Turnover
rate
1.10
6.52
1.66
5,537,829
(Note 4)
(Note 4)
4,370,909
(Note 4)
1,721,087
47,687,191
124,747
(Note 4)
46.04
2.35
2.44
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
Just and its subsidiaries With the same
ultimate parent
company
HSI and its subsidiaries With the same
ultimate parent
company
CEB
BCI and its subsidiaries With the same
ultimate parent
company
Parent company
Compal Electronic, Inc.
HSI and its subsidiaries With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
CEA
CEB
Just and its subsidiaries With the same
ultimate parent
company
Etrade and its subsidiaries Compal Electronic, Inc.
Etrade and its subsidiaries
Forever and its subsidiaries HSI and its subsidiaries With the same
ultimate parent
company
Parent company
HSI and its subsidiaries
HSI and its subsidiaries
Compal Electronic, Inc.
Etrade and its subsidiaries With the same
ultimate parent
company
HSI and its subsidiaries
Rayonnant and its
subsidiaries
Arcadyan
Arcadyan
Arcadyan
Arcadyan
CNC
CBN
BCI and its subsidiaries With the same
ultimate parent
company
CIH and its subsidiaries With the same
ultimate parent
company
Arcadyan's subsidiary
Arcadyan's subsidiary
Arcadyan USA
Arcadyan Vietnam
Arcadyan AU
Arcadyan Germamy
Arcadyan
Arcadyan's subsidiary
Arcadyan's subsidiary
With the same
ultimate parent
company
HSI and its subsidiaries With the same
ultimate parent
company
Note 1: Balance as of March 7, 2023.
Note 2: Balance as of March 3, 2023.
Note 3: Balance as of March 6, 2023.
Note 4: Receivables due to purchasing on behalf of related parties.
Note 5: Accounts receivables due to processing raw material.
128,602
6.06
4,199,215
1.33
1,425,340
2.01
8,835,507
2,409,030
3.47
0.62
485,682
0.62
180,177
2.67
415,662
4.09
2,242,604
117,120
4.80
3.44
216,768
4.75
4,914,134
522,935
14.38
4.76
546,121
2.89
194,275
11.86
5.45
(Note 4)
7.45
2.84
4.70
4,102,435
1,000,854
(Note 4)
281,293
597,274
3,011,224
(Note 5)
364,925
(Note 5)
Overdue
Amount
-
Action taken
-
(In Thousands of New Taiwan Dollars)
Amounts received in
subsequent period
188,346
(Note 1)
Allowance
for bad
debts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,390,870
(Note 1)
1,433,533
(Note 1)
1,339,742
(Note 1)
4,370,909
(Note 1)
1,478,627
45,630,291
37,150
(Note 1)
(Note 1)
(Note 1)
-
-
-
(Note 1)
(Note 1)
(Note 1)
8,835,507
-
(Note 1)
(Note 1)
62,919
(Note 1)
160,837
(Note 1)
-
(Note 1)
391,222
-
(Note 1)
(Note 1)
-
(Note 1)
4,914,134
-
-
-
(Note 1)
(Note 1)
(Note 1)
(Note 1)
2,632,307
-
(Note 2)
(Note 2)
188,344
236,699
655,717
(Note 2)
(Note 2)
(Note 2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Note 5)
309,627
Strengthen
collections
364,925
(Note 3)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 8 The information on investees for the year ended December 31, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
97
Investor
Company
Investee
Company
The Company Kinpo&Compal Group Assets
Development
Location
Taipei City
Bizcom
Just
CIH
Panpal
Gempal
Kinpo Group management
consultant company (“Kinpo Group
management”)
Ripal
Unicore
Lead-Honor Optronics. Co., Ltd.
(“Lead-Honor”)
CEH
Shennona Taiwan
Allied Circuit
Poindus Systems
Taipei City
Aco Smartcare
Hsinchu
County
Lipo Holding Co., Ltd.
CPE
Starmems
Crownpo Technology
Inc. (“Crownpo”)
Cayman
The
Netherlands
Hsinchu
County
Taipei City
Main Businesses
and Products
Real estate development leasing
and related management
business
Houston, USA Warranty services and marketing
of LCD TVs and notebook PCs
British Virgin
Islands
British Virgin
Islands
Taipei City
Investment
Investment
Investment
Original Investment Amount
Ending Balance
December 31,
2022
525,000
December 31,
2021
525,000
Shares
52,500
Percentage
of
Ownership
70%
Carrying
Value
505,547
Net income
(losses) of
investee
(27,910)
Share of
profits/losses of
investee
(19,538)
Note
(In Thousands of New Taiwan Dollars/ shares)
36,369
36,369
100
100%
452,361
3,410
3,410
1,480,509
1,480,509
48,010
100% 10,364,994
(43,156)
(43,156)
1,787,680
1,787,680
53,001
100% 42,565,956
1,030,304
1,030,304
5,171,837
5,171,837
500,000
100%
4,405,558
(313,956)
(377,252)
(Note 1)
Taipei City
Investment
900,036
900,036
90,000
100%
1,726,562
164,612
127,886
Taipei City
City
Consultation, training
services, etc.
3,000
3,000
300
38%
4,882
284
106
(Note 1)
60,000
60,000
6,000
100%
122,458
24,384
20,384
200,000
200,000
20,000
100%
84,482
(17,399)
(17,399)
42,000
42,000
2,772
42%
-
34
34
1
100%
3,619,227
-
-
-
-
6,000
6,000
600
100%
3,696
2,056
576
395,388
395,388
10,158
20%
438,793
555,696
112,728
353,046
-
11,768
56%
324,768
4,415
(1,196)
90,000
90,000
100,000
52%
44,330
(24,930)
(12,973)
489,450
197,463
489,450
197,463
98
6,427
49%
100%
398,723
864,057
(664,683)
11,842
(325,694)
11,842
35,000
35,000
3,500
35%
24,990
(25,660)
(8,981)
149,547
149,547
3,739
33%
41,029
(95,015)
(31,576)
1,000,000
295,000
219,601
1,000,000
295,000
219,601
100,000
29,500
21,756
100%
100%
53%
1,169,400
374,428
262,227
97,275
42,400
44,823
97,275
42,400
26,334
101,747
101,747
3,000
100%
149,561
10,180
10,180
1,325,132
1,325,132
41,305
19%
2,668,147
1,915,053
378,755
2,754,741
2,754,741
89,755
100%
4,510,138
(152,120)
(152,120)
Taipei City
Tainan 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
Taoyuan City Production and sales of PCB
boards
Design and manufacture of PCs
and peripheral equipment
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
Investment
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
Investment
Taipei City
Taipei City
Taichung City Manufacturing of equipment 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
Investment
British Virgin
Islands
Delaware,
USA
British Virgin
Islands
Poland
CEP
Hippo Screen Neurotech Co., Ltd. Taipei City
Infinno Technology Corporation
(“Infinno”)
Hsinchu
County
HengHao
Taipei City
BCI
British Virgin
Islands
Medical care IOT business
48,210
32,665
-
100%
16,505
(65)
(65)
Investment
1,346,814
1,346,814
42,700
54%
233,699
407,288
218,225
Maintenance and warranty
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
90,156
112,000
90,156
112,000
136
9,100
100%
91%
(27,599)
34,975
(23,440)
(26,246)
(23,440)
(23,883)
127,026
127,026
4,648
28%
32,062
(20,788)
(5,762)
5,729,757
5,729,757
20,015
100%
(797,521)
(231,377)
(231,377)
2,636,051
2,636,051
90,820
100%
8,565,523
582,505
582,505
(Continued)
Hong Ji
Hong Jin
Mactech
Auscom
Arcadyan
FGH
Shennona
HSI
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 8 The information on investees for the year ended December 31, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
98
Investor
Company
The Company CBN
Investee
Company
Rayonnant
CRH
Acendant Private Equity
Investment Ltd.
Etrade
Webtek
Forever
UCGI
Palcom
Avalue
CORE
Compal Ruifang
GLB
CGSP
ARCE
Raypal
Original Investment Amount
Ending Balance
December 31,
2022
284,827
December 31,
2021
284,827
Shares
29,060
Percentage
of
Ownership
43%
Carrying
Value
627,558
Net income
(losses) of
investee
(57,588)
Share of
profits/losses of
investee
(24,531)
Note
(In Thousands of New Taiwan Dollars/ shares)
295,000
295,000
29,500
100%
200,647
27,157
32,532
377,328
377,328
12,500
100%
287,734
32,813
32,813
943,922
943,922
31,253
35%
1,405,430
(46,382)
(16,105)
1,532,029
1,532,029
46,900
65%
(364,333)
87,088
(134,458)
3,340
1,575
3,340
1,575
100
50
100%
763,229
33,407
33,407
100%
1,531,800
84,921
84,921
689,997
489,998
20,000
100%
162,613
102
(83)
100,000
547,595
100,000
547,595
10,000
14,924
100%
21%
112,687
727,787
3,547
556,099
3,547
118,990
4,318,860
4,318,860
147,000
100%
7,666,891
301,896
301,896
100,000
-
10,000
100%
99,940
(60)
(60)
247,560
246,860
15,035
50%
371,580
81,417
40,421
89,669
89,669
-
100%
92,429
3,773
(3,816)
60,000
60,000
20,000
33%
23,708
(61,803)
(20,601)
Location
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
New Taipei
City
Poland
Taipei City
Main Businesses
and Products
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
Investment
Investing and developing
businesses, such as public
construction and specific zones
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
Taipei City
Cancerous immunocyte therapy
and regenerative medicine
209,076
155,076
4,646
30%
186,922
(37,927)
(11,348)
Panpal
Arcadyan
Hsinchu City Telecommunication equipment
279,202
279,202
8,192
4%
573,951
1,915,053
__________
97,080,580
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%
126,442
555,696
boards
Gempal
Others
Arcadyan
Hsinchu City Telecommunication equipment
306,655
306,655
9,279
4%
(514,643)
675,117
1,915,053
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%
139,086
555,696
boards
Hong Ji
Others
Arcadyan
Hsinchu City Telecommunication equipment
306,655
306,655
9,279
4%
(740)
675,117
1,915,053
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%
31,888
555,696
boards
Hong Jin
Arcadyan
Hsinchu City Telecommunication equipment
131,942
131,942
4,609
2%
320,345
1,915,053
and apparatus manufacturing,
electronic parts and components
manufacturing, restrained
telecom radio frequency
equipment and materials import
and manufacturing
___________
1,826,023
Investment
gain(losses)
recognized by
Panpal
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 8 The information on investees for the year ended December 31, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
99
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Investee
Company
Just
CDH (HK)
Location
Hong Kong
Main Businesses
and Products
Investment
December 31,
2022
1,913,156
December 31,
2021
1,913,156
Shares
62,298
Percentage
of
Ownership
100%
Carrying
Value
7,842,940
Net income
(losses) of
investee
(77,396)
Original Investment Amount
Ending Balance
CII
CPI
CII
Smart
AEI
MEL
MTL
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
283,914
283,914
9,245
100%
258,032
(24)
15,355
15,355
500
100%
13,668
11,067
31
31
1
100%
381
(7)
U.S.A
Sales and maintenance of LCD
TVs
30,710
30,710
1,000
100%
(483)
(37)
U.S.A
Investment
252,866
252,866
U.S.A
Investment
31
31
-
-
100%
209,588
20
100%
31
-
CIH
CIH (HK)
Hong Kong
Investment
2,297,185
2,297,185
74,803
100% 41,759,699
1,485,718
Jenpal
PFG
FWT
CCM
HSI
IUE
Goal
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
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
British Virgin
Islands
Investment
British Virgin
Islands
Investment
British Virgin
Islands
Investment
225,719
225,719
7,350
100%
111,492
1,931
31
31
1
100%
5,455
25,570
457,579
457,579
14,900
100%
457,578
(1)
156,621
156,621
5,100
51%
25,691
(4,805)
2,057,570
2,057,570
67,000
100%
664,327
406,560
390,017
390,017
12,700
100%
338,159
728
2,057,570
2,057,570
67,000
100%
664,327
406,560
390,017
390,017
12,700
100%
339,807
728
2,481,982
2,481,982
80,820
100%
5,400,819
392,369
307,100
307,100
10,000
100%
3,164,705
190,136
4,514,370
4,514,370
147,000
100%
7,666,891
301,896
Cayman
Islands
Investment
155,086
155,086
-
99%
140,305
(3,242)
British Virgin
Islands
Investment
1,136,270
1,136,270
37,000
46%
768,787
407,288
U.S.A
Manufaturing
249,672
249,672
1
-
100%
215,327
4,015
100%
-
-
Forever
GIA
British Virgin
Islands
Selling of mobile phones
-
-
BCI
CMI
PRI
CORE
BSH
BSH
Mithera
HSI
CIN
Share of
profits/losses of
investee
Note
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
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 8 The information on investees for the year ended December 31, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
100
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Forever
CWV
Investee
Company
Webtek
Etrade
Unicore
Raycore
Main Businesses
and Products
R&D, manufacturing, sales, and
maintenance of notebook PCs,
computer monitors, LCD TVs
and electronic components
Investment
Location
Vietnam
British Virgin
Islands
Taipei City
Animal medication retail and
wholesale
Original Investment Amount
Ending Balance
December 31,
2022
December 31,
2021
Shares
Percentage
of
Ownership
61,420
61,420
-
100%
Carrying
Value
101,739
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
79,661
767,750
767,750
25,000
35%
7,446
87,088
-
40,692
-
0%
-
-
Arcadyan
Arcadyan Holding
British Virgin
Islands
Investment
1,701,027
2,219,782
47,780
100%
1,804,421
(45,949)
Arcadyan USA
U.S.A
Sales of wireless network
products
23,055
23,055
Arcadyan Germany
Germany
Technology support and sales of
wireless network products
1,125
1,125
1
1
100%
79,312
(63,692)
100%
87,814
7,152
Arcadyan Korea
Korea
Sales of wireless network
products
2,879
2,879
20
100%
24,216
11,167
Zhi-Bao
Hsinchu City
Investment
48,000
48,000
34,980
100%
405,516
(10,735)
TTI
Taipei City
R&D and sales of household
digital products
308,726
308,726
25,028
61%
205,272
(256,058)
AcBel Telecom
Taipei City
Investment
-
23,000
-
0%
-
3,365
Arcadyan UK
UK
Technical support of wireless
network products
1,988
1,988
50
100%
4,759
572
Arcadyan AU
Australia
Arcadyan RU
(cid:83)(cid:118)(cid:116)(cid:116)(cid:106)(cid:98)
Sales of wireless network
products
Sales of wireless network
products
1,161
1,161
50
100%
61,405
18,089
7,672
7,672
-
100%
4,964
(1,713)
CBN
Hsinchu
County
Sales of communication and
electronic components
11,925
11,925
533
1%
11,898
(57,588)
Arcadyan and
Zhi-Bao
Arcadyan Brasil
Brazil
Sales of wireless network
products
81,593
81,593
968
100%
(41,645)
(23,669)
Arcadyan India
India
Sales of wireless network
products
29,110
13,507
7,500
100%
23,337
(4,001)
Arcadyan
Holding
Sinoprime
British Virgin
Islands
Investment
892,126
892,126
29,050
100%
1,223,179
267,559
Arch Holding
British Virgin
Islands
Investment
338,148
338,148
35
100%
827,635
(323,027)
TTI
Quest
Samoa
Investment
36,852
36,852
1,200
100%
(230,523)
(142,972)
TTJC
Japan
Sales of household digital
electronic products
9,626
9,626
1
100%
3,297
(499)
Quest
Exquisite
Samoa
Investment
35,931
35,931
1,170
100%
(232,168)
(142,975)
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless
network products
890,590
890,590
-
100%
1,218,634
267,530
Zhi-Bao
CBN
Hsinchu
County
Produces and sales of
communication and electronic
components
36,272
36,272
13,140
19%
293,202
(57,588)
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
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
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 8 The information on investees for the year ended December 31, 2022 (excluding information on investees in Mainland China):
(December 31, 2022)
101
(In Thousands of New Taiwan Dollars/ shares)
Investor
Company
Rayonnant
APH
Investee
Company
Location
British Virgin
Islands
Original Investment Amount
Ending Balance
Main Businesses
and Products
Investment
December 31,
2022
257,454
December 31,
2021
257,454
Shares
8,651
Percentage
of
Ownership
41%
Carrying
Value
193,110
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
59,449
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
383,875
383,875
12,500
59%
287,734
59,449
96,767
96,767
3,151
100%
43,994
456
Rayonnant(HK)
Hong Kong
Investment
552,780
552,780
18,000
100%
428,698
58,993
HHT
HHA
HHA
HHB
British Virgin
Islands
Investment
British Virgin
Islands
Investment
1,429,235
1,429,235
46,882
100% (1,091,269)
(360,633)
1,439,747
1,439,747
46,882
100% (1,091,210)
(360,633)
CBN
CBNB
Belgium
CBNN
Netherlands
Starmems
Taiwan
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
R&D of MEMS microphone
related products
6,842
6,842
20
100%
5,386
(255)
7,016
7,016
20
100%
6,168
(118)
10,000
10,000
1,000
10%
7,140
(25,660)
FGH
Wah Yuen Technology Holding
Ltd. and its subsidiaries
Mactech
Taiwan Intelligent Robotics
Company, LTD.
Mauritius
Investment
2,756,391
2,756,391
95,862
37%
4,580,629
(377,622)
Taipei City
Manufacturing of equipment
43,200
43,200
2,160
17%
2,395
(25,969)
Poindus
Systems
Poindus
Investment
Poindus Investment
Taipei City
investment holding
4,100
4,100
(Note 2)
100%
559
(61)
Poindus UK
UK
Sales of PCs and peripherals
14,297
14,297
300
100%
(7,792)
(2,676)
Adasys
Germany
Sales of PCs and peripherals
57,712
57,712
0.002
100%
1,866
(26,473)
Poindus GmbH
Germany
Sales of PCs and peripherals
1,721
1,721
(Note 2)
100%
135
(61)
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: A limited company, therefore no number of shares.
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
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
Mactech
Investment gain
(losses)
recognized by
Poindus Systems
Investment gain
(losses)
recognized by
Poindus Systems
Investment gain
(losses)
recognized by
Poindus Systems
Investment gain
(losses)
recognized by
Poindus
Investment
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 9 Information on investment in Mainland China:
(December 31, 2022)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
102
Main businesses and products
Manufacturing and sales of
monitors
Total amount of
paid-in capital
1,136,270
Method of
investment
(Note 1)
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2022
1,136,270
(In Thousands of New Taiwan Dollars/ shares)
Accumulated
outflow of
investment from
Taiwan as of
December 31,
2022
1,136,270
Net income
(losses) of the
investee
(301,556)
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
(301,556)
Book value
2,597,603
Accumulated
remittance of
earnings in
current
period
-
Investment flows
Outflow
-
Inflow
-
-
-
-
-
-
-
614,200
(Note 2)
614,200
368,520
(Note 2)
368,520
264,852
(Note 2)
(Note 3)
614,200
36,769
100%
36,769
123,413
368,520
(341,528)
100%
(341,528)
4,968,182
-
(178,620)
100%
(178,620)
133,487
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
Sheng Bao Precision
Electronics (Taicang)
Co., Ltd.
CIJ
CDE
CIS
CEC
CMC
CEQ
Compal Precision
Module (Jiangsu) Co.,
Ltd.
Changbao Electronic
Technology (Chongqing)
Co., Ltd.
Rayonnant (Taicang)
and
sales
Manufacturing
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
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:28874) 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
International trade and
distribution of computers and
electronic components
Research & development, and
manufacturing latest electronic
components, precision cavity
mold, design and manufacturing
for standard parts for molds, and
selling self-produced products
Investment and consulting
services
Manufacturing and sales of LCD
TVs
Outward investment and
consulting services
R&D and manufacturing of
notebook PCs, tablet PCs, digital
products, network switches,
wireless AP, and automobile
electronic products
Corporate management
consulting, financial and tax
consulting, investment consulting,
and investment management
consulting services
R&D, manufacturing and sales of
notebook PCs and related
components. Also provides
related maintenance and warranty
services
Manufacturing and selling of
magnesium alloy injection
molding
Production and marketing of
magnesium alloy molding
Manufacturing and sales of
aluminum alloy and magnesium
alloy products
69,639
(Note 2)
(Note 3)
-
-
-
-
51%
-
(43,757)
Manufacturing of notebook PCs
30,710
(Note 2)
30,710
8,828
(Note 2)
(Note 3)
982,720
(Note 1)
409,364
-
-
-
-
-
-
30,710
57,996
-
7,260
100%
100%
57,996
(115,716)
7,260
(38,545)
409,364
(568,185)
43%
(245,342)
300,436
614,200
(Note 1)
45,144
-
-
45,144
(512,722)
48%
(244,056)
308,175
Manufacturing of notebook PCs
368,520
(Note 2)
Manufacturing and
sales of LCD TVs
371,591
(Note 1)
Manufacturing of notebook PCs
737,040
(Note 2)
42,994
(Note 2)
368,520
371,591
737,040
42,994
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
368,520
371,591
739,180
112,294
737,040
954,634
42,994
(8,091)
100%
100%
100%
100%
739,180
10,388,019
112,294
3,047,731
954,634
25,750,770
(8,091)
45,069
156,621
(4,805)
51%
(2,450)
58,466
479,076
158,621
100%
158,621
2,643,288
-
160,011
100%
160,011
2,608,270
2,481,982
392,369
100%
392,369
5,400,819
-
-
392,329
100%
392,329
5,369,643
148
100%
148
24,729
307,100
190,136
100%
190,136
3,164,705
2,537,475
(1,093)
37%
(400)
5,538,329
351,814
(218,529)
37%
(80,025)
655,762
383,875
58,993
100%
58,993
429,298
307,100
(Note 2)
156,621
479,076
(Note 2)
479,076
460,650
(Note 2)
(Note 3)
2,481,982
(Note 1)
2,481,982
2,456,800
(Note 2)
(Note 3)
24,568
(Note 2)
(Note 3)
307,100
(Note 1)
307,100
12,898,200
(Note 2)
2,537,475
1,842,600
(Note 2)
351,814
552,780
(Note 2)
383,875
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
Table 9 Information on investment in Mainland China:
(December 31, 2022)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
103
Accumulated
outflow of
investment
from Taiwan
as of January
1, 2022
675,620
Accumulated
outflow of
investment from
Taiwan as of
December 31,
2022
Net income
(losses) of the
investee
675,620
(64,917)
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
(64,917)
Book value
(1,168,454)
Accumulated
remittance of
earnings in
current
period
-
Investment flows
Outflow
-
Inflow
-
Total amount of
paid-in capital
829,170
Method of
investment
(Note 1)
(In Thousands of New Taiwan Dollars/ shares)
Name of
investee
CCI Nanjing
CDCN
CWCN
Hanhelt
Arcadyan
SVA Arcadyan
CNC
THAC
HengHao
HengHao Kunshan
Main businesses and 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
Manufacturing and wireless
network products
Manufacturing of household
electronics products
178,118
(Note 1)
178,118
1,504,790
(Note 1)
583,490
61,420
(Note 1)
61,420
248,751
(Note 1)
382,340
(Note 1)
102,879
(Note 1(cid:739)
9)
412,128
(Note 7)
338,148
(Note 8)
35,317
Production of touch panels and
related components
1,228,400
(Note 1)
1,222,350
Lucom
Manufacturing of notebook PCs
and related modules
460,650
(Note 2)
199,585
(Note 12)
Poindus Systems
Qijie
Sales of PCs and peripherals
30,710
(Note 1)
30,710
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
178,118
1,490
100%
1,490
90,840
583,490
155,008
100%
155,008
1,065,299
61,420
(2,771)
100%
(2,771)
(369)
412,128
6,199
100%
6,199
35,040
338,148
(323,027)
100%
(323,027)
827,635
35,317
(142,975)
100%
(142,975)
(232,690)
1,222,350
(361,185)
100%
(361,185)
(1,232,238)
199,585
671
100%
671
140,778
30,710
(10,931)
100%
(10,931)
11,493
-
-
-
-
-
-
-
-
-
(ii) Limitation on investment in Mainland China:
Names of
Company
The Company
Arcadyan
HengHao
Poindus Systems
Note 1(cid:28873)
Note 2(cid:28873)
Note 3(cid:28873)
Note 4(cid:28873)
Note 5(cid:28873)
Note 6(cid:28873)
Note 7(cid:28873)
Note 8(cid:28873)
Note 9(cid:28873)
Note 10(cid:28873)
Note 11(cid:28873)
Accumulated Investment in Mainland China
as of December 31, 2022
16,661,311
(US$542,537)
(Note 5)
785,593
(US$25,581)
1,439,439
(US$46,872)
30,710
(US$1,000)
Investment Amounts Authorized by
Investment Commission of Ministry of
Economic Affairs
23,598,055
(US$768,416)
Limitation on investment in Mainland China by
Investment Commission of Ministry of
Economic Affairs
(Note 6)
(In Thousands of USD)
785,593
(US$25,581)
1,439,439
(US$46,872)
30,710 (US$1,000)
8,284,344
(Note 12)
308,044
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 basis for recognition of investment profit and loss is based on the financial statements that verified by CPA
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.
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 12(cid:28873) The net equity of HengHao is negative at December 31, 2022.
(iii) Significant transactions:
For the year ended December 31, 2022, 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”.