Stock Ticker 2324
2023 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 April 2, 2024
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
Kaohsiung Branch
Address: No. 189, Linsen 4th Rd., Qianzhen Dist., Kaohsiung City, Taiwan
Tel: 886-7-535-3855
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
41
125
126
127
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
127
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
130
131
3.8 Relationship among the Top Ten Shareholders
3.9 Ownership of shares in Affiliated Enterprises
IV. Capital Overview
133
137
137
138
140
140
140
140
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
141
170
191
192
192
195
197
2
VI. Financial Information
198
202
208
209
209
209
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
210
211
212
212
213
214
217
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
218
252
252
252
252
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. 2023 was still a year full of changes
and there are many new risks and challenges in the industry, technology and even economy and politics. In terms
of industry, as the pandemic receded, the pandemic dividend enjoyed by electronic products gradually
disappeared and the industry experienced a drastic downward adjustment in demand in the past year. However,
in terms of technology, we also see the rise of AI, which has brought many application opportunities in work,
products and manufacturing, and has become an important trend for future development. In terms of economy,
the world is still affected by inflation, which poses a great challenge to terminal consumer demand. In terms of
politics, the competition between the United States and China is ongoing and even develops into a conflict
between countries which brings many uncertainties to the future. In the face of rapid changes in the overall
environment, Compal has adopted many strategies and countermeasures in recent years and gradually
established our long-term competitiveness. We hereby present our financial and business results for 2023, as
well as the business outlook for 2024 as follows:
Financial and Business Results
Compal’s 2023 consolidated revenue was NT$946,715 million, a decline of 12% from last year. The total shipment
of 5C products also decreased by 17% to 79 million units. Although the annual revenue declined due to a lower
demand, under the Company's strategy of improving profitability and operational capabilities, product portfolio
enhancement and automation efficiency improved, driving the annual gross profit margin to increase from 3.8%
in the previous year to 4.5%, and the operating profit margin also increased from 0.9% in the previous year to
1.3%. The consolidated net operating profit for the year increased by 31% to NT$12,048 million from that of the
previous year. Although interest rate hikes, exchange rate fluctuations and declining investment incomes form
affiliates led to a decrease in non-operating income in 2023, the net profit before tax for the year was still
NT$11,890 million, an increase of 11% from that of the previous year. The net profit after tax for the whole year
which belongs to the parent company is NT$7,668 million, and the earnings per share are NT$1.76.
Business Development and Layout
Under the economic momentum slowdown and geopolitical development, the entire industry and even Compal
are going through an important transformation period. It is necessary to differentiate through emerging
applications and specific products, and promote regional development to sustain our growth momentum.
Therefore, AI, Cloud Server, Auto Electronics, Communication and MedTech are the big Five important emerging
industries that we define. Compal has invested resources, actively made deployments, and gradually seen results.
In the future, we will make it our important development goal to gain a leading position in new business fields.
In terms of regional development, Taiwan, Mainland China and Vietnam have become the important operating
bases of Compal in Asia. Over the past two years, we have been continuously expanding our operational capacity
4
in North America in the United States and Mexico; to further meet customer needs and growth, we are currently
evaluating the establishment of factories in Europe and hope to provide more complete operational support in
various regions. In addition, in terms of regional development, we also leverage the resources of the Kinpo-
Compal Group and work closely with our sister companies to make the investment and utilization of resources
more efficient.
In terms of MedTech, Compal is gradually showing achievements in the field of advanced medical equipment,
including: the investment in Aco Healthcare on its portable ultrasound solutions has obtained FDA certification
in the United States and TFDA certification in Taiwan, the AI brainwave detection equipment of HippoScreen is
helpful in the treatment and diagnosis of depression and is currently undergoing clinical trials, General Life
Biotechnology which is a blood glucose cholesterol and uric acid reagent factory has achieved stable profitability
and plans to establish a new factory in Indonesia, and Compal internal medical team has developed a
radiofrequency ablation system to collaborate with National Taiwan University Hospital to jointly establish a
treatment training center. In addition, Rueifang Hospital, a collaboration between Compal and New Taipei City,
will begin construction this year. It combines daycare and long-term care services, and will become a practical
application field for Compal's smart medical products in the future.
Progress of Corporate Sustainability
On the corporate sustainability, Compal continues to improve its various ESG work. In terms of the environment,
we have introduced digital tools with upgraded the air conditioning and power systems in the factories, and
introduced smart meter settings and energy intelligence monitoring platforms to further help achieving the
carbon reduction goals. In the green supply chain project, we assist suppliers in establishing carbon management
information platforms in a "big-leading-small" manner to help the quantification and integration of supply chain
carbon information. In terms of the society, Compal has launched the DEI project, committed to establishing the
workplace awareness of Diversity, Equity and Inclusion, and creating a diverse and happy workplace. As for social
feedback, Compal has long collaborated with Hsu Chauing Social Welfare Charity Foundation to invest in cultural
education and public welfare, which has been highly recognized by the outside world. In 2023, we were honored
to receive the "Social Education Contribution Award" from the Ministry of Education and the "Social Service
Award" from the Library Association of the Republic of China. In terms of corporate governance enhancement,
Compal amended its Corporate Governance Best Practice Principles in 2023, added a diversity policy for the
composition of the board of directors, and appointed external professional independent institutions to conduct
external evaluations of board performance. We have comprehensively promoted the issue of corporate
sustainability, allowing Compal to significantly improve its sustainability performance in the evaluations of
external ESG organizations (such as S&P CSA, MSCI ESG, ISS ESG and Sustainalytics ESG Risk). In 2023, Compal
was once again selected by the Taiwan Institute for Sustainable Energy as one of the "Top 100 Model Sustainable
Enterprises in Taiwan", which is a recognition of Compal's continued investment in sustainability work.
Future Outlook and Plans
Looking ahead, although market research institutions are looking forward to a recovery of the industry in 2024,
5
their estimates are relatively conservative. The expectation of an economic soft landing indicates that there are
still significant challenges and uncertainties in the market development this year. In such an environment,
Compal's business priority, in addition to continuing our profit-focused strategy, is to implement the following
three plans.
On the operations side, we will continue to invest in digital projects on the basis of automation, carry out
comprehensive intelligent transformation, and further strengthen Compal's operational resilience. On the
technology side, especially the application of AI technology will have a revolutionary impact on the industry.
Compal's deployment in AI is not only widespread in servers, laptops, mobile phones, wearable devices, medical
products, etc., but also the application of AI capabilities into smart production and manufacturing. Our
investment and layout in AI will definitely not fall behind. On the growth side, a solid foundation has been
established for Compal's five emerging businesses in recent years. Looking ahead, in addition to organic growth,
we will actively take external M&A opportunities to accelerate the growth momentum further. At the same time,
we will effectively utilize external resources to combine with our core capabilities to create a synergistic effect
and long-term value for the company.
Finally, we would like to once again thank all shareholders for your long-term support to Compal, and we wish
you all peace and good health, and prosperity in everything!
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:
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.
• Ranked 4th in CommonWealth Magazine’s “Top-2000 Manufacturers”.
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 317th on the Fortune Global 500.
Ranked 1345th on the Forbes Global 2000.
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 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”.
7
• 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”.
• Ranked 420th on the Fortune Global 500.
• Ranked 1522th on the Forbes Global 2000.
• Ranked the Gold Award in the Technology R&D of 2023 Happiness Enterprise online voting by
1111.
• Selected to take part in the CDP climate change program for 10 consecutive years (2014-2023). In
2023, received a score of B in the CDP climate change and were rated at the management level for
the water questionnaire.
• The Compal Sustainability report in 2023 won the Platinum Medal of Taiwan Corporate
Sustainability Report Award of TCSA and Taiwan Top 100 Sustainability Award..
• Social Education Contribution Awards by Ministry of Education Republic of China (Taiwan) and
Ministry of Education Kaohsiung respectively.
• Welfare Service Award by Library Association of the Republic of China (Taiwan) in 2023
• The Company’s share capital reached TWD 44.1 billion in 2023.
• The Company’s consolidated revenue reached TWD 9,467 billion in 2023.
2024
• Won 20 awards at the 2024 “iF Design Awards”.
• 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”.
• Selected into the“Taiwan Tech High Dividend Index”.
■ 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
III. Corporate Governance Report
3.1
Organization
3.1.1 Organizational Chart (As of March 1st, 2024)
Shareholders
Board of Directors
Sustainability
Committee
Audit Office
Remuneration
Committee
Audit Committee
Risk Management
Committee
President’s Office
Personnel Evaluation Committee
Top Management Committee
Digital Transformation
Committee
Investment Planning and
Management Office
Legal Affairs Office
Insider Trading Prevention Office
Digital Transformation Office
ESG Office
Occupational Safety and Health
Office
P
C
B
G
G
O
B
G
S
D
B
G
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
H
R
a
n
d
A
D
M
G
r
o
u
p
9
3.1.2 Major Corporate Functions
Department
Functions
President’s Office
Responsible for the Company’s operations
Risk Management Committee
Implements risk management related affairs
Sustainability Committee
Promotes and executes sustainability-related plans
Auditing Office
Conducts internal audits
Investment Planning and
Management Office
Responsible for investment-related activities
Legal Affairs Office
Handles the Company’s legal affairs
Insider Trading Prevention
Office
Implements preventive measures against insider trading
Digital Transformation Office
Promotes and executes digital transformation projects
ESG Office
Promotes and executes ESG-related affairs
Occupational Safety and Health
Office
Implementing a comprehensive occupational health and safety
program
PCBG
GOBG
SDBG
Responsible for the R&D, production, quality control and sale of PCs
and other related products
Responsible for production, quality control, and worldwide operation
affairs
Responsible for the R&D, production, quality control, and the sale of
smart devices
Accounting Group
Handles accounting, share administration, and funding affairs
Financial Group
Responsible for the Company's financial planning, capital scheduling,
and payment controlling.
HR and Administration Group
Responsible for human resources, training, education, employee
relations, general affairs, and building management
10
Directors and Management Team
3.2
3.2.1 Directors
Title/
Name/
Nationality (Note
1, 2)
Gender/
Age
Elected
Date
Term
First
Elected
Date
Shareholding at the
election date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
(%)
Chairman
Sheng-Hsiung
Hsu
Male
81-90
2021.8.27
3
years
1984.04.16
8,975,401
0.20%
8,975,401
0.20%
17,107,025
0.39%
0
0.00%
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%
1,069,405
0.02%
0
0.00%
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
2018.6.22
5,000,000
0.11%
5,000,000
0.11%
1984.04.16
5,000,000
0.11%
5,000,000
0.11%
1990.06.22
151,628,692
3.44%
151,628,692
3.44%
0
0
0
0.00%
0.00%
0.00%
2020.07.21
4,117,569
0.09%
4,117,569
0.09%
631
0.00%
0
0
0
0
0.00%
0.00%
0.00%
0.00%
2021.8.27
3
years
2021.8.27
3
years
3
years
2021.8.27
1984.04.16
7,896,867
0.18%
7,896,867
0.18%
30,645
0.00%
0
0.00%
Co-Founder of Compal
Electronics, Inc.
Honorary Doctorate,
National Taiwan Normal
University
Chair of Kinpo Electronics,
Inc.
Honorary Doctorate,
National Cheng Kung
University
Chair of Arcadyan
Technology Corp.
Co-Founder of Compal
Electronics, Inc.
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.
Co-Founder of Compal
Electronics, Inc.
Bachelor of Business Dept.,
National Taiwan University
PhD, Lincoln University, USA
Chair of Taiwan Biotech Co.,
Ltd.
April 2, 2024
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
11
Title/
Name/
Nationality (Note
1, 2)
Gender/
Age
Elected
Date
Term
First
Elected
Date
Shareholding at the
election date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
(%)
Director
Sheng-Chieh Hsu
Male
66-80
3
2021.8.27
years 1997.05.29
9,204,201
0.21%
9,204,201
0.21%
8,152,928
0.18%
(Note 4)
(Note 4)
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%
2,502,768
0.06%
0
0.00%
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%
1,398
0.00%
0
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%
30,000
0.00%
0
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
2018.6.22
1,919,489
0.04%
1,919,489
0.04%
2018.6.22
0
0.00%
0
0.00%
2018.6.22
835,000
0.02%
835,000
0.02%
0
0
0
0.00%
0
0.00%
0.00%
0
0.00%
0.00%
0
0.00%
2012.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
Bachelor of Architectural
Dept., Tam- Kang University
Director of Kinpo
Electronics Inc.
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.
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)
Chairman
Sheng-Hsiung
Hsu
Brothers
(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
12
Title/
Name/
Nationality (Note
1, 2)
Gender/
Age
Elected
Date
Term
First
Elected
Date
Shareholding at the
election date
Current shareholding
Shares held by spouse and
underage children
Current shareholding
Shares held by proxy
Major career/academic
achievements
Shareholding
Shareholding
Shareholding
Shareholding
Shares
Percentage
Shares
Percentage
Shares
Percentage
Shares
Percentage
(%)
(%)
(%)
(%)
Independent
Director
Duei Tsai
Male
66-80
2021.8.27
3
years
Independent
Director
Wen-Chung Shen
Male
66-80
2021.8.27
3
years
2012.6.22
0
0.00%
0
0.00%
0
0.00%
0
0.00%
1998.4.8
2,836,000
0.06%
2,836,000
0.06%
2,315,000
0.05%
0
0.00%
Note: 1. Except for Director Anthony Peter Bonadero, who is a US citizen, the rest of the directors are ROC nationals.
2. The Chairman, Chief Strategy Officer and President of the Company are not the same person, spouses, or related to each other.
3. Wen-Chung Shen served as Director from April 22, 1998 to June 22, 2018.
4. Director Sheng-Chieh Hsu held 2,578,000 shares (0.06%) through proxies.
Ph.D., Electrical
Engineering, National
Taiwan University
Independent Director of
Taiwan High Speed Rail
Corporation
Bachelor of Electrical
Engineering Dept., National
Taiwan University
Director of Compal
Electronics, Inc.
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
5. Selected Current Positions as below:
Title
Name
Chairman Sheng-Hsiung Hsu
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.,
Cal-Comp Semiconductor, Ltd.
Managing Director: Taiwan Biotech Co., Ltd.
Director: Crownpo Technology Inc., Compal System Trading (Kunshan) Co., Ltd., Cal-Comp Optical Electronics (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
Mexico Electromex, S.A. de C.V., 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.,
13
Title
Name
Selected Current Positions
Intelligent Universal Enterprise Ltd., Jenpal International Ltd., Just International Ltd., Kinpo Electronics (Philippines), Inc., Kinpo International
(Singapore) Pte. Ltd., Kinpo International Ltd., Lipo Holding Co., Ltd., Prospect Fortune Group Ltd., Prisco International Co., Ltd., Ranashe
International Ltd., Smart International Trading Ltd.
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., Compal
Smart Device India Private Limited.
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 Electronics (Vietnam)
Co., 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
Vice
Chairman
Jui-Tsung Chen
Director
Representative of
Binpal Investment
Co., Ltd.:
Wen-Being Hsu
Chairman: Binpal Investment Co., Ltd., Yuanbao Investment Co., Ltd.
Director: Liu Pao Trading Co., Ltd.
14
Title
Name
Kinpo Electronics,
Inc.
Director
Representative of
Kinpo Electronics
Inc.: Chieh-Li Hsu
Selected Current Positions
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.,
NTNU Innovation Investment Holding Company
Chairman: AcBel Polytech Inc., AcSacca Solar Energy Co., Ltd., AcTel Power Co., Ltd., AcGile EV Power Inc., KangYang New Energy Co., Ltd., AcSun Energy Inc.,
AcRay Energy Co., Ltd., AcTek Energy Co., Ltd., AcRise Power Inc., AcLeap Power Inc., Sumray Power Company, AcBel Electronic (XIANTAO) Co.,
Ltd., AcBel Electronic (Dong Guan) Co., Ltd., AcBel Electronic (Wuhan) Co., Ltd., Shanghai Sino Hardware Electronics (Wujiang) Co., Ltd., AcAmple
Power Pte. Ltd., Acbel Polytech Philippines, Inc., OmniOn Power (China) Co., Ltd., OmniOn Power Holdings Inc., OmniOn Power Overseas LLC,
OmniOn Power Shanghai Co., Ltd.
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., ARCE Therapeutics, Inc., Raypal Biomedical Co., Ltd., VesCir Ltd., XYZprinting, Inc., Kinpo&Compal Group Assets
Development Corporation, Compal Ruifang Health Assets Development Corporation, Ray-Kwong Medical Management Consulting Co., Ltd., Melvita
Taiwan Ltd., Shangbao Enterprise Inc., Ginza Sakoh Taiwan Co., Ltd., NKG Advanced Intelligence and Technology Development (Yue Yang) Co., Ltd.,
LIZ Electronics (Nantong) Co., Ltd., Cal-Comp Precision Holding Co., Ltd., ABB Lineage Power Mexico, S. de R.L. de C.V., 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., Lineage Power Matamoros, S.A. de C.V., OmniOn Power
(Singapore) Pte. Ltd., OmniOn Power Inc., Power Station Holdings Ltd., Cal-Comp Semiconductor, Ltd., Target Gain Corporation
Supervisor: Teleport Access Services, Inc., Kinpo Group Management Consultant Company, Full Power Investment Co., Ltd
Chief Strategy Officer: Cal-Comp Electronics and Communications Co., Ltd.
President: AcBel Polytech Inc., Kinpo&Compal Group Assets Development Corporation, AcGile EV Power Inc., AcBel Electronic (XIANTAO) Co., Ltd., 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, Managing Director
of Japan-Taiwan Exchange Association, Managing Director of Importers and Exporters Association of Taipei, Managing Director of Monte Jade Science
and Technology Association (Taiwan), Director of The Third Wednesday Club, Director of Epoch Foundation.
Branch Manager: AcSacca Solar Energy Co. Ltd. Changhua Branch.
15
Title
Name
Director
Charng-Chyi Ko
Selected Current Positions
Chairman: Taiwan Biotech Co., Ltd., All For Health Biotech Co., Ltd., Evergene Biotech Industrial Co., Ltd., T.B.C. Development and Construction Co., Ltd., Weck
Tech Biotech Co., Ltd., Global BioParma 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.
Vice-Chairman: OmniHealth Group, Inc.
Director: Kinpo Electronics, Inc., Chang Yao Technology Inc., Genhealth Pharma Co., Ltd., All Information Inc., Taiwan Carefor Home Pharmacy Co., Ltd., Gold
Precision Ltd., KKXC Integrated Management Holding (CYPRUS) Ltd., Optics Lab Inc., Synpharm, Inc.
Supervisor: Teleport Access Services, Inc., Sunny Special Dyeing & Finishing Co., Ltd.
Other: Chair of Yang Bi Li Education Foundation of Management, Director of Health, Welfare & Environment Foundation, Managing Supervisor of Cross-Strait
Health Care and Leisure Activities Association
Chairman: Integrate Investment Corp.
Director: Cal-Comp Electronics (Thailand) Public Company Limited, Cal-Comp Electronics and communications Co., Ltd., Kinpo&Compal Group Assets
Director
Sheng-Chieh Hsu
Development Corporation, Kinpo Electronics (China) Co., Ltd., Kinpo International Ltd.
Director
Yen-Chia Chou
Director
Chung-Pin Wong
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.
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., Compal Healthcare and Technology Ltd., 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., Taiwan Sanga Co., Ltd., 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.
Branch Manager: Compal Electronics, Inc. Kaohsiung Branch
16
Title
Name
Director
Chiung-Chi Hsu
Chairman: E-Bow Bearing Co., Ltd., Full Power Investment Co., Ltd.
Director: Juan Hsin Bao Hardware co., Ltd., Jin Yongxiang co., Ltd.
Chairman: FIPOLL Electronics (Chongqing) 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
Selected Current Positions
Director Ming-Chih Chang
Director
Anthony Peter
Bonadero
Director
Sheng-Hua Peng
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., FIPOLL
Electronics (Chongqing) 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.
Executive Vice-President: Compal Electronics, Inc.
Executive Vice-President: Auscom Engineering Inc.
Chief Sustainability Officer of ESG Office: 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., Compal Smart Device India Private Limited.
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, Zhi Cheng Retro-style EV-mobility Design Co., Ltd., Vital First
Investment Corporation, Maxima Ventures II, Inc.
Independent
Director
Min Chih Hsuan
Director: SIPP, Inc., Meribank Biotech Co., Ltd., Meridigen Biotech Co., Ltd., Htsensortek 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 (Hong Kong), Pacgen Biopharmaceuticals Corporation (Canada)
Independent
Director
Duei Tsai
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.
17
Title
Name
Selected Current Positions
Independent
Director
Wen-Chung Shen
Risk Management Committee Member: Compal Electronics, Inc.
Nominating Committee Member: Taiwan High Speed Rail Corporation,
Corporate Governance Committee Member: Taiwan High Speed Rail Corporation,
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.
18
▓ 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. (8.26%), Panpal Technology Corp. (4.62%), GEBO Limited (3.00%), Ho Bao Investment Co., Ltd. (2.00%), Ruey Shinn
Co., Ltd. (1.87%), Li Chu Tsai (1.44%), UBS Taipei Branch is subject to Li Chu Tsai trust property account (1.33%), Lai Shun Shen Tsai (1.28%),
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%), JPMorgan Chase Bank N.A. Taipei Branch in Custody for Vanguard Total International Stock Index
Fund, a series of Vanguard Star Funds (1.21%)
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%)
19
▓ Professional qualification of Directors and independence Information of Independent Directors:
Conditions
Name
Professional Qualification & Experience
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
Director
Sheng-Chieh Hsu
Director
Yen-Chia Chou
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.
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.
20
Independence Status of
Independent Directors
No. of concurrent
Independent
directorships of other
public firms held
1
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Conditions
Name
Professional Qualification & Experience
Director
Chung-Pin Wong
Director
Chiung-Chi Hsu
Director
Ming-Chih Chang
Director
Anthony Peter Bonadero
Director
Sheng-Hua Peng
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.
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.
Independence Status of
Independent Directors
No. of concurrent
Independent
directorships of other
public firms held
N/A
N/A
N/A
N/A
N/A
21
Conditions
Name
Professional Qualification & Experience
Honorary Doctorate, Department of Electrical Engineering, National Chiao Tung University
Chairman, Vice Chairman, CEO, President and Honorary Vice Chairman of United Microelectronics
Corp.
Chairman of Faraday Technology Corp., Clientron 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.
Independent Director
Min Chih Hsuan
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.
Part-time professor-level professional and technical personnel in the Department of Electrical
Engineering, National Taipei University of Technology and the Department of Digital Multimedia
Design, Kainan University; Adjunct professor at the Department of Electronics, National Taiwan
University of Science and Technology and the Department of Electronics, Yuanzhi University.
Government positions such as Minister of Transportation and Director of the Civil Aviation Bureau
of the Ministry of Transportation.
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.
Independent Director
Duei Tsai
Independent Director
Wen-Chung Shen
Note: Independent Directors shall indicate the fulfillment of independence criteria.
22
No. of concurrent
Independent
directorships of other
public firms held
3
Independence Status of
Independent Directors
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): 0
shares, 0%
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): 0
shares, 0%
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%
• These criteria include but are not limited to the following: 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 a 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 for 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).
23
▓ 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.
24
(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
Employee
Status
(Note 1)
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
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V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Industry
Experience
(Note 2)
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: 1. Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng have the status of employees of the company, and directors Chieh-Li Hsu and Anthony Peter Bonadero
have the status of employees of the subsidiaries.
2. The GICS Level 1 sectors: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Healthcare, Financials, Information Technology, Communication Services, Utilities, and
Real Estate.
25
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 years
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:
Management goal
The number of Directors holding concurrent positions as the Company Managers does not exceed 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.
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 and more than half
of the independent directors shall serve no more than three consecutive terms.
In addition, at least one female director shall serve, helping achieve the specific goal of diversification of the company's directors members.
26
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 the Securities and Exchange Act, Articles 26-3 and 26-4. In conclusion, the Board of Directors of
the Company is deemed independent.
27
3.2.2 Management Team
Title
Name/
Nationality/
Gender
(Note 1, 2)
Date elected
/appointed
Shares held
Shares held by spouse and
underage children
Subsidiary shareholding
Total shares held in the
names of others
Shares held
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Major career/academic achievements
Chief Strategy
Officer
Jui-Tsung Chen
2018.07.04
35,352,587
0.80%
1,069,405
0.02%
President
Chung-Pin Wong
2018.07.04
6,618,618
0.15%
1,398
0.00%
Executive Vice-
President
Executive Vice-
President
Executive Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Ming-Chih Chang 2018.07.04
1,919,489
0.04%
Sheng-Hua Peng
2018.07.04
835,000
0.02%
Chen-Chang Hsu
2011.08.31
0
0.00%
0
0
0
0.00%
0.00%
0.00%
Chun-Te Shen
2007.01.01
2,953,700
0.07%
900,000
0.02%
Kuo-Chuan Chen
2007.01.01
685,823
0.02%
10,924
0.00%
Chyou-Jui Wei
2010.03.18
0
0.00%
Wen-Da Hsu
2014.02.27
1,333,000
0.03%
0
0
0.00%
0.00%
28
0
0
0
0
0
0
0
0
0
0.00%
Honorary Doctorate, National Cheng
Kung University
Chair of Arcadyan Technology Corp.
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Master of Management Science, National
Chiao-Tung University
Chair of Compal Broadband Networks,
Inc.
Electrical Engineering Dept., Ming Chi
University of Technology
Director of Mactech Co., Ltd.
Master of Electronics Engineering,
National Taiwan University
Director of Arcadyan Technology Corp.
National Chiao Tung University EMBA
Vice-Chair of HengHao Technology Co.
Ltd.
Master of Electrical Engineering, National
Taiwan University
Director of Kinpo Electronics Inc.
Bachelor of Physics Dept., Chung Yuan
Christian University
Senior Vice-President of Compal
Communication Inc.
Master of Business Administration,
University of Washington, USA
Director of General Life Biotechnology
Co.,
Media Administration Dept., Shih Hsin
University
Senior Vice-President of Compal
Communication Inc.
April 2, 2024
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
Page 14
Refer to
Page 16
Refer to
Page 17
Refer to
Page 17
(Note 4)
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
Title
Name/
Nationality/
Gender
(Note 1, 2)
Date elected
/appointed
Shares held
Shares held by spouse and
underage children
Subsidiary shareholding
Total shares held in the
names of others
Shares held
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Shares
Shareholding
Percentage
(%)
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Senior Vice-
President
Shi-Kuan Chen
2017.02.08
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%
0.00%
0.00%
0.00%
0.00%
0.00%
Chung-Hsing Tan
2020.08.12
0
0.00%
5,320
0.00%
Ta-Chun Wang
2016.06.29
204,200
0.00%
4,119
0.00%
0
0
0
0
0
0
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Vice-President
Chih-Chuan
Cheng
2003.01.01
2,103,786
0.05%
51,194
0.00%
0
0.00%
Vice-President
Ching-Hsiung Lu
2003.01.01
7,237,007
0.16%
650,000
0.01%
Chief
Information
Security Officer
Po-Tang Wang
2007.07.10
510,548
0.01%
486
0.00%
0
0
0.00%
0.00%
29
Major career/academic achievements
Master of Industrial Design, Cranbrook
Academy of Art
Director of Design and Customer Affairs,
Philips (Hong Kong)
Bachelor of Electrical Engineering Dept.,
Fu Jen Catholic University
Senior Vice-President of Inventec Corp.
Master of Business Administration,
Washington University, USA
Deputy Manager of Sales, Kapok
Computer Company
Electronic Engineering Dept., Lee-Ming
Institute of Technology
Chair's Special Assistant, Mag Technology
Co., Ltd.
Electronics Dept., National Taiwan
University of Science and Technology
Master of Industrial Engineering and
Operations Management, Columbia
University
Master of Electrical Engineering, Tatung
University
Vice-President of Compal Communication
Inc.
Tamkang University PhD of Finance
Managing Vice-President of Shanghai
Real Industrial Co., Ltd.
Department of Electronic Engineering,
Lunghwa University of Science and
Technology
Deputy Manager of Research and
Development, Top Information
Technologies Co., Ltd.
Bachelor of Accounting Dept., Feng Chia
University
Director Compal Communication Inc.
Bachelor of Computer Science and
Information Engineering Dept., National
Taiwan University
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
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
(Note 4)
Chief
Strategy
Officer
Jui-Tsung
Chen
Relative by
affinity
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
Title
and Vice-
President
Vice-President
Tzong-Ming
Wang
2009.07.16
263,184
0.01%
Vice-President
Yong-Ho Su
2011.07.01
410,401
0.01%
Vice-President
Jyh-Shyan Liang
2011.10.31
58,000
0.00%
Vice-President
Yi-Yun Chang
2014.08.13
85,246
0.00%
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
0
0.00%
Chief Legal
Officer and
Vice-President
Peng-Hong Chan 2018.05.09.
0
0.00%
0
0
0
0
0
0
0
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Corporate
Governance &
Cheng-Chiang
Wang
2018.07.04
2019.05.13
955,808
0.02%
30
0.00%
30
President of Vibo Telecom Inc.
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
National Taipei Institute of Technology
Head of Research and Development,
CLEVO Company
Department of Electrical Engineering,
National Taipei Institute of Technology
Vice-President of Arima Photovoltaic and
Optical Corp.
Master of Digital Communication,
University of Colorado Boulder, USA
Vice-President of Wireless
Communication, Altek Corporation
Master of Electrical Engineering, National
Taiwan University
Senior Manager of Compal
Communication Inc.
Master of Business Administration,
University of Lincoln
Vice-Chairman of Poindus System Corp.
Master in Control Engineering, National
Chiao Tung University
Director of Coretronic Corporation
Master of Earth Sciences, National
Central University
Ph.D., Electrical Engineering, National
Taiwan University
President of Photonics Industries
International, Inc.
0.00%
Master of Cornell University Law School,
USA
CSO, Pou Chen Group
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.00%
Bachelor of Accounting Dept., Fu Jen
Catholic University
(Note 4)
N/A
N/A
N/A
0
0
0
0
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
(%)
Major career/academic achievements
Financial officer of Allied Circuit Co., Ltd.
Selected
Current
Position at
COMPAL and
Other
Companies
Spouse or relatives of second degree
or closer acting as managers
Title
Name
Relationship
Accounting
Officer and
Vice-President
Vice-President
Cheng-Hui Su
2018.12.01
105,000
0.00%
0
Vice-President
Chuan-Fan Tu
2018.12.01
593,081
0.01%
62,105
Financial Officer
and
Vice-President
Guo-Dung Yu
2020.08.12
60,000
0.00%
Vice-President
Peng Kuee Lau
2020.08.12
Vice-President Wu-Ching Chi
2022.02.10
0
0
0.00%
0.00%
0.00%
0.00%
0.00%
0
0
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
0
0
0.00%
0.00%
Vice President Wei-Chia Wang
2024.02.29
120,000
0.00%
Internal Audit
Officer
Hui Chun Yu
2024.03.12
4,000
0.00%
0
0
0
0
0.00%
0.00%
0.00%
0.00%
0
0
0
0
0
0
0
0
0
0
0.00%
Master of Business Administration,
Tulane University
0.00% Vanung University, Vanung University
Master of Accounting, George
Washington University
Financial officer of Arcadyan Technology
Corp.
Bachelor of Science and Technology
Dept., IOWA State University
0.00%
0.00%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
(Note 4)
N/A
N/A
N/A
N/A
N/A
0.00%
0.00%
0.00%
0.00%
0.00%
Master of Electrical Engineering,
Columbia University, NY
Director of Raypal Biomedical Co., Ltd.
Master of EMBA, National Central
University
Master of Business Administration,
Nanyang Technological University,
Singapore
Chung Yuan Christian University,
Electrical Engineering
Vice President of AAC Technologies Pte.
LTD
MA International Economic Management
of University of Birmingham UK
Audit Office Project Director r of Walsin
Lihwa Corp.
(Note 4)
N/A
N/A
Chief
Strategy
Officer
Jui-Tsung
Chen
father and
son
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.00%
8,000
0.00%
0.00% Master of Computer Engineering, NCTU
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, Internal Audit Officer Hui Chun Yu, 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 Jen-Liang Lin transferred and Hou-Chun Liu resigned in 2023, Vice Presidents Chang-Chieh Tien and Fu-Chuan Chang retired, Internal Audit Officer Chenyi Li
transferred in 2024.
4. Concurrent positions in other companies:
31
Title
Name
Selected Current Positions
Chairman: HengHong Optoelectronics Technology (Kunshan) Co., Ltd., Henghao Optoelectronics Technology (Zhejiang) Co., LTD., LUCOM Display
Executive Vice-
President
Senior Vice-
President
Technology (KunShan) Ltd.
Chen-Chang Hsu
Vice-Chairman: HengHao Technology Co. Ltd.
President: HengHao Technology Co. Ltd., HengHong Optoelectronics Technology (Kunshan) Co., Ltd., Henghao Optoelectronics Technology
(Zhejiang) Co., LTD., LUCOM Display Technology (KunShan) Ltd.
Chun-Te Shen
Director: HippoScreen Neurotech Corp., Auscom Engineering Inc., Shennona Corporation
Senior Vice-
President
Chyou-Jui Wei
Director: Chenfeng Optronics Corp., General Life Biotechnology Co., Ltd., ARCE Therapeutics, Inc., 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: Rayonnant Technology Co., Ltd., Mactech Co., Ltd., Taiwan Intelligent Robotics Company, Ltd., Infinno Technology Corp., Ripal
Optotronics Co., Ltd., UniCore Biomedical Co., Ltd., Aco Healthcare Co., Ltd., Ray-Kwong Medical Management Consulting Co., Ltd.,
Novascope Diagnostics Inc., 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 ESG Office: 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.,
32
Title
Name
Selected Current Positions
Kunshan Botai Electronics Co., Ltd., Compal Investment (Sichuan) Co., Ltd., Compal Investment (Jiangsu) Co., Ltd., Compal
Management (Chengdu) Co., Ltd.
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
Jyh-Shyan Liang
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,
Vice-President
Hsin-Kung Mao
Vice-President
Jui-Chun Shyur
Director: Compal Healthcare and Technology Ltd.
Mexcom Technologies, LLC
Chief Operating Officer: Poindus Systems Corp.
Director: Allied Circuit Co., Ltd., Poindus System Corp., Zhi-Bao Technology Corporation, Palcom International Corporation, Infinno Technology
Corp., Mactech Co., Ltd., 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
Cheng-Chiang Wang
Supervisor: HippoScreen Neurotech Corp., UNICOM GLOBAL, INC., HengHao Technology Co. Ltd., Compal Ruifang Health Assets Development
Corporation, Compal System Trading (Kunshan) Co., Ltd., Compower Global Service Co., Ltd., Compal Smart Device (Chongqing)
Co., Ltd., FIPOLL Electronics (Chongqing) Co. Ltd., HengHong Optoelectronics Technology (Kunshan) Co., Ltd., Henghao
Optoelectronics Technology (Zhejiang) Co., LTD.
Deputy Sustainability Officer of ESG Office: 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.
33
Corporate
Governance &
Accounting
Officer and
Vice-President
Financial Officer
and Vice-
President
Guo-Dung Yu
Vice-President
Hsin-Chung Chen
3.2.3 Remuneration of Directors, Independent Directors, President and Vice-Presidents
1. Remuneration of Directors and Independent Directors
Directors' remuneration
Remuneration as an employee
Remuneration (A)
Pension (B)
Remuneration from
earnings appropriation
(C)
Business department
implementation
Fees for services rendered
(D)
The sum of A, B, C and D
as a percentage of after-
tax profits
Salaries, bonuses, special
allowances, etc (E)
Retirement
pension (F)
Share of profits as an employee (G)
The
Company
All
companies
included in
the financial
statements
The
Company
All
companies
included in
the
financial
statements
The
Company
All
companies
included in
the
financial
statements
The
Company
All
companies
included in
the financial
statements
The
Company
All
companies
included in
the
financial
statements
The
Company
All
companies
included in
the financial
statements
The
Company
All
companies
included in
the
financial
statements
The Company
All companies included in
the financial statements
Cash
Stock
Amount
Amount
Cash
Stock
The sum of A, B, C, D, E, F,
and G as a percentage of
after-tax profits
The
Company
All
companies
included in
the
financial
statements
Remunerati
on from
ventures
other than
subsidiaries
or from the
parent
company
(H)
Unit: TWD 1,000; Thousand shares; %
0
0
0
0 43,051
43,051
2,284
3,055
0.5913%
0.6013%
89,587
140,629
794
899
24,880
0
24,880
0
2.0945%
2.7716%
39,437
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
Duei Tsai
7,200
7,200
0
0
0
0
475
475
0.1001%
0.1001%
0
0
0
0
0
0
0
0
0.1001%
0.1001%
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 depends 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 2023, the Company made pension contributions totaling TWD 794 (including TWD324 under the new system and TWD 470 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 899 (including TWD 429 under the new system and TWD 470 under the old system).
2. The distribution of directors' remuneration was approved by the Board of Directors meeting on February 29, 2024. The remuneration amount of the aforementioned Directors is not determined fully until authorized by a meeting of the Board of
Directors.
34
▓ Table of Remuneration Ranges
Range of Remuneration
Under TWD 1,000,000
TWD 1,000,000 - TWD 2,000,000 (exclusive)
TWD 2,000,000 - TWD 3,500,000 (exclusive)
TWD 3,500,000 - TWD 5,000,000 (exclusive)
TWD 5,000,000 - TWD 10,000,000 (exclusive)
TWD 10,000,000 - TWD 15,000,000 (exclusive)
TWD 15,000,000 - TWD 30,000,000 (exclusive)
TWD 30,000,000- TWD 50,000,000 (exclusive)
TWD 50,000,000 - TWD 100,000,000 (exclusive)
Over TWD 100,000,000 (inclusive)
Total
Total of (A+B+C+D)
Total of (A+B+C+D+E+F+G+H)
Number of Directors
The Company
Companies in the consolidated
financial statements
The Company
Companies in the consolidated
financial statements
2 (Note 1)
11 (Note 2)
3 (Note 3)
1 (Note 4)
2 (Note 5)
11 (Note 6)
2 (Note 7)
2 (Note 8)
2 (Note 9)
8 (Note 10)
2 (Note 11)
1 (Note 12)
2 (Note 13)
2 (Note 14)
1 (Note 15)
6 (Note 16)
1 (Note 17)
2 (Note 18)
1 (Note 19)
2 (Note 20)
4 (Note 21)
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
Charng-Chyi Ko, Binpal Investment Co., Ltd.-2 positions
Sheng-Hsiung Hsu. Jui-Tsung Chen-2 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
14.
Jui-Tsung Chen, Chung-Pin Wong -2 positions
15. Wen-Being Hsu-1 position
16. Yen-Chia Chou, Chiung-Chi Hsu, Min Chih Hsuan, Duei Tsai, Wen-Chung Shen, Kinpo Electronics, Inc. -6 positions
35
17. Binpal Investment Co., Ltd.-1 position
18. Charng-Chyi Ko,Sheng-Chieh Hsu-2 positions
19. Chieh-Li Hsu -1 position
20. Ming-Chih Chang, Sheng-Hua Peng-2 positions
21. Sheng-Hsiung Hsu, Jui-Tsung Chen, Chung-Pin Wong, Anthony Peter Bonadero-4 positions
2. Remuneration of Supervisors: Not Applicable (The Company adopts an Audit Committee system)
3. Remuneration of the President and Vice-Presidents
Salary (A)
Pension (B)
Bonus and
special allowances (C)
Title
Name
The Company
All companies
included in the
financial
statements
The Company
All companies
included in the
financial
statements
The Company
All companies
included in the
financial
statements
Share of profits as an employee (D)
The Company
All companies included in the
financial statements
Cash
Stock
Cash
Amount
Amount
Amount
Stock
Amount
Unit: TWD 1,000; Thousand shares; %
Sum of A, B, C and D as a percentage
of after-tax profits (%)
Remuneration from
ventures other than
All companies
subsidiaries or from
The Company
included in the
the parent company
financial statements
(E)
43 employees,
including CSO Jui-
126,717
132,251
5,711
5,711
255,177
255,679
98,870
0
98,870
0
6.34453%
6.42325%
158
Tsung Chen
(Note1)
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, 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, Chuan-Fan Tu Guo-Dung Yu, Peng Kuee Lau, Wu-Ching Chi, Hsin-Chung
Chen, Jue-Teng Chang, Choo-Tain Chiu,Wei-Chia Wang, Liang-Jen Lin, Hou-Chun Liu , Chang-Chieh Tien, Fu-Chuan Chang, - 26 positions
2. In 2023, the Company made pension contributions totaling TWD 5,711 (including TWD 3,976 under the new system and TWD 1,735 under the old system). In contrast, all
companies reported in the financial statements made pension contributions totaling TWD 5,711 (including TWD 3,976 under the new system and TWD 1,735 under the old
system).
3. Employees’ compensation appropriation was approved by the Board of Directors at the meeting on February 29, 2024. The compensations of the aforementioned managers
were not yet final and will be reviewed prior to the date of distribution.
36
▓ 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)
2 (Note 4)
20 (Note 5)
11 (Note 6)
5 (Note 7)
2 (Note 8)
43
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)
1(Note 11)
2 (Note 12)
20 (Note 13)
11 (Note 14)
5 (Note 15)
2 (Note 16)
43
Jen-Liang Lin-1 position
Hou-Chun Liu-1 position
Note:
1.
2.
3. Wei-Chia Wang-1 position
4.
5.
Ching-Hsiung Lu, Fu-Chuan Chang -2 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, Jui-Chun Shyur, Peng-Hong Chan, Cheng-
Chiang Wang, Cheng-Hui Su, Chuan-Fan Tu, Chang-Chieh Tien, Guo-Dung Yu, Peng Kuee Lau, Wu-Ching Chi, Jue-Teng Chang, Choo-Tain Chiu -20 positions
Chyou-Jui Wei, Min-Tung Weng, Lo-Chun Lee, Sheng-Hung Li, Bor-Heng Chen, Chung-Hsing Tan, Ta-Chun Wang, Yong-Ho Su, Shih-Hong Huang, Yi-Chiang Chiu, Hsin-Chung Chen -11 positions
6.
7. Ming-Chih Chang, Sheng-Hua Peng, Chen-Chang Hsu, Shi-Kuan Chen, Chi-Wai Wan -5 positions
8.
Jui-Tsung Chen, Chung-Pin Wong-2 positions
9.
Jen-Liang Lin-1 positions
10. Hou-Chun Liu-1 position
11. Wei-Chia Wang-1 position
12.
13.
Ching-Hsiung Lu, Fu-Chuan Changr -2 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, Jui-Chun Shyu, Peng-Hong Chan, Cheng-
Chiang Wang, Cheng-Hui Su, Chuan-Fan Tu, Chang-Chieh Tien, Guo-Dung Yu, Peng Kuee Lau, Wu-Ching Chi, Jue-Teng Chang, Choo-Tain Chiu-20 positions
Chyou-Jui Wei, Min-Tung Weng, Lo-Chun Lee, Sheng-Hung Li, Bor-Heng Chen, Chung-Hsing Tan, Ta-Chun Wang, Yong-Ho Su, Shih-Hong Huang, Yi-Chiang Chiu, Hsin-Chung Chen -11 positions
14.
15. Ming-Chih Chang, Sheng-Hua Peng, Chen-Chang Hsu, Shi-Kuan Chen, Chi-Wai Wan-5 positions
37
16.
Jui-Tsung Chen, Chung-Pin Wong-2 positions
▓ Employee profits sharing granted to the management team
Title
Name
Stock dividends
Cash dividends
Total
Total as a percentage of after-tax profits (%)
Unit: TWD 1,000
39 employees, including
CSO Jui-Tsung Chen (Note 1)
Note: 1. Managers’ titles and names
0
98,870
98,870
1.28944%
‧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, 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, Chuan-Fan Tu, Guo-Dung Yu, Peng Kuee Lau, Wu-Ching
Chi, Hsin-Chung Chen, Jue-Teng Chang, Choo-Tain Chiu, Wei-Chia Wang – 22 positions
2. Vice Presidents Jen-Liang Lin transferred and Hou-Chun Liu resigned in 2023, Vice Presidents Chang-Chieh Tien and Fu-Chuan Chang retired in 2024
3. Employees’ compensation appropriation was approved by the Board of Directors at the February 29, 2024 meeting. The compensations of the aforementioned
managers have not been finalized and will be reviewed prior to the date of distribution.
38
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
2023
2022 (Note)
Increase (Decrease)
Amount
%
Amount
%
Amount
%
Unit: TWD 1,000
596,583
7.78%
541,037
7.42%
55,546
10.27%
Net Income
7,667,627
7,288,292
379,335
Note: 2022 is the actual amount.
▓ The policies, standards, and portfolios for the payment of remuneration, the procedures for determining remuneration, and correlation with
business performance.
‧ Remuneration paid by the Company to Directors has been made in accordance with the Articles of Association. When the Company makes a profit in a year,
no more than 2% of the Company’s pre-tax profits (not including remuneration for employees and Directors) shall be paid to Directors as remuneration
along with reasonable compensation based on other factors such as the Company’s operational performance and the individual Director’s 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
the Manager’s comprehensive performance indexes. Moreover the remuneration system of directors and managers is reviewed timely in accordance with
the actual operating conditions, relevant laws and regulations. Managers’ performance indexes include financial indexes (such as revenue, gross margin,
net profit, return on assets, and return on equities), and non-financial indexes (such as leading internal transformation, driving sustainable development,
and managing operational risk).
39
‧ The Company’s procedure for determining remuneration not only takes into account the Company’s overall operational performance but is also based on
managers’ performance (about 70% based on financial indexes, about 30% based on non-financial indexes). 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.
40
Implementation of Corporate Governance
3.3
3.3.1 Board of Directors
‧The term of the 14 th committee ran from August 27, 2021 to August 26, 2024.
‧There were seven Board meetings during 2023 (A). Director’s attendance records are as shown below:
Attendance in
Person (B)
7
Attendance Rate
(%) [B/A]
100%
Sheng-Hsiung Hsu
Chairman
Remarks
By Proxy
Name
Title
0
Vice Chairman
Jui-Tsung Chen
Director
Director
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
Sheng-Hua Peng
Independent
Director
Independent
Director
Independent
Director
Min-Chih Hsuan
Duei Tsai
Wen-Chung Shen
5
5
7
7
6
5
7
7
7
5
7
4
7
7
2
2
0
0
1
1
0
0
0
2
0
3
0
0
71.43%
71.43%
Note 1
100%
100%
85.71%
71.43%
100%
100%
100%
71.43%
100%
57.14%
100%
100%
Note 2
Note: 1. Due to health reasons, director Wen-Being Hsu was not present for 2 of 7 board meetings.
2. Foreign director Anthony Peter Bonadero was not present for 2 of 7 board meetings due to scheduling and
timezone differences.
‧ Independent Director’s attendance records for 2023:
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
6th
Meeting
7th
Meeting
●
●
●
●
●
●
● ★
●
●
●
●
Note: ●: Attendance in Person; ★: By Proxy; ◎: Absent
▓ Other notes:
1. For Board of Directors meetings that meet any of the following descriptions, state the date, session, the
discussed topics, Independent Directors' opinions, and how the Company has responded to such
opinions:
(1) Conditions described in Article 14-3 of the Securities and Exchange Act: Not applicable (the
Company has an Audit Committee rather than supervisors)
(2) Any other documented objections or qualified opinions raised by Independent Directors against
board resolutions in relation to matters other than those described above: None.
41
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
The agendas, the nature of conflicting interests, and the voting outcome
9th Meeting
(14th Term)
2023.03.15
10th Meeting
(14th Term)
2023.05.08
˙Approved fund loan to 70% owned subsidiary Kinpo&Compal Group Assets Development
Corporation
Chairman Sheng-Hsiung Hsu asked the Independent Director Min Chih Hsuan to act as a
deputy chairman to preside at this meeting to discuss and vote 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 conflict of interest, they 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 chairman, no objection was addressed and the resolution
was adopted unanimously by the remaining Directors present.
˙Approved the first mid-year employees’ bonus of the year 2023
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, an interested party relationship exists between any Directors and any
agenda proposals, such Directors shall excuse themselves during discussion of and voting on
those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung Chen, Chung-
Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as managerial officers
of Compal, avoided discussion and voting on this proposal. Upon solicitation of comments by
the chairman, no objection was addressed and the resolution was adopted unanimously by
the remaining Directors present.
˙Approved the appointment of the 1st term Risk Management Committee members
An interested party relationship exists between Director Chung-Pin Wong and Independent
Directors Min Chih Hsuan (attended by proxy of Duei Tsai), Duei Tsai, and Wen-Chung Shen.
In order to avoid conflict of interest, these Independent Directors excused themselves from
discussion and voting on this proposal. Upon solicitation of comments by the Chairman of
the meeting, no objection was 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 with Director Jui-Tsung Chen. In order to avoid a
conflict of interest, this Director excused himself from discussion and voting on this
proposal. Upon solicitation of comments by the Chairman of the meeting, no objection was
addressed and the resolution was adopted unanimously by the remaining Directors present.
˙Approved employees’ salary adjustment for the year 2023
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, an interested party relationship exists between any Directors and any
agenda proposals, such Directors shall excuse themselves during discussion of and voting on
those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung Chen, Chung-
Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as managerial officers
of Compal, avoided discussion and voting on this proposal. Upon solicitation of comments by
the chairman, no objection was addressed and the resolution was adopted unanimously by
the remaining Directors present.
˙Approved to obtain newly issued shares of ARCE Therapeutics, Inc. by participating in the
capital injection by cash.
Chairman Sheng-Hsiung Hsu asked Independent Director Duei Tsai to act as a deputy
chairman to preside at this meeting to discuss and vote on this proposal. To avoid conflict of
interest, Directors Directors Jui-Tsung Chen, Chieh-Li Hsu, Chung-Pin Wong are also acting as
Directors of the ARCE. Director Sheng-Hsiung Hsu, the Father-son relationship, who is
42
Board of
Directors
Meeting
11th Meeting
(14th Term)
2023.07.18
12th Meeting
(14th Term)
2023.08.11
13th Meeting
(14th Term)
2023.09.07
14th Meeting
(14th Term)
2023.11.10
The agendas, the nature of conflicting interests, and the voting outcome
relatives within first degree, of kinship of the Director Chieh-Li Hsu of ARCE, 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, no objection was addressed and the
resolution was adopted unanimously by the remaining Directors present.
˙Approved to obtain newly issued shares of AcBel Polytech Inc. 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 to discuss and vote on this proposal. To avoid conflict of
interest, Director Chieh-Li Hsu who is also acting as Director of the AcBel, Sheng-Hsiung Hsu
and Chieh-Li Hsu are first cousins (father and son), Sheng-Hsiung Hsu and Sheng-Chieh Hsu
are second cousins (brothers), 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, no
objection was addressed and the resolution was adopted unanimously by the remaining
Directors present.
˙Approved the Directors’ Remuneration for the year 2022
Chairman Sheng-Hsiung Hsu asked the Independent Director Min-Chih Hsuan to act as a
deputy chairman to preside at this meeting to discuss and vote on this proposal. Since an
interested party relationship exists, the Directors (i.e., Sheng-Hsiung Hsu, Jui-Tsung Chen,
Wen Being Hsu, Chieh-Li Hsu, Charng-Chyi Ko, Sheng-Chieh Hsu, Yen-Chia Chou, Chung-Pin
Wong, Chiung-Chi Hsu, Ming-Chih Chang, Sheng-Hua Peng amd Anthony Peter Bonadero)
recuse and exclude themselves from discussion and voting on this proposal to avoid conflict
of interest. Upon solicitation of comments by the deputy chairman, no objection was
addressed and the resolution was adopted unanimously by the remaining Directors present.
˙Approved 2nd mid-year employees’ bonus for the year 2023
In accordance with the Company’s Regulations Governing the Proceedings of Board of
Directors Meetings, an interested party relationship exists among any Directors and any
agenda proposals, such Directors shall recuse and exclude themselves during discussion of
and voting on those proposals. Accordingly, to avoid conflict of interest, Directors Jui-Tsung
Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as
managerial officers of Compal, avoided discussion and voting on this proposal. Upon
solicitation of comments by the chairman, no objection was addressed and the resolution
was adopted unanimously by the remaining Directors present.
˙Approved to obtain newly issued shares of Cal-Comp Electronics (Thailand) Public
Company Limited. 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 to discuss and vote on this proposal. To avoid conflict of
interest, Directors Sheng-Hsiung Hsu, Chieh-Li Hsu, Sheng-Chieh Hsu, who are also acting as
Director of the CCET, 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, no objection
was addressed and the resolution was adopted unanimously by the remaining Directors
present.
˙Approved the compensation of Employees’ bonus in cash for 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 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
43
Board of
Directors
Meeting
The agendas, the nature of conflicting interests, and the voting outcome
the chairman, no objection was addressed and the resolution was adopted unanimously by
the remaining Directors present.
˙Approved the proposal for the 2023 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 conflict of interest, Directors Jui-Tsung Chen, Chung-
Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are also acting as managerial officers
of Compal, avoided discussion and voting on this proposal. Upon solicitation of comments by
the chairman, no objection was addressed and the resolution was adopted unanimously by
the remaining Directors present.
˙Approved to obtain newly issued shares of Kinpo&Compal Group Assets Development
Corporation. by participating in the capital injection by cash.
Chairman Sheng-Hsiung Hsu asked the Independent Director Wen-Chung Shen to act as a
deputy chairman to preside at this meeting to discuss and vote 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 conflict of interest, they 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 chairman, no objection was addressed and the resolution
was adopted unanimously by the remaining Directors present.
44
3. Self-Evaluation of the Board of Directors:
■ Performance Evaluation of the Board of Directors
Evaluation
cycles
Evaluation
periods
Scope of
evaluation
Method of
evaluation
Once a year
From June 1, 2022 to May 31, 2023
Board of Directors, Functional Committees (Including Audit Committee, Remuneration
Committee), individual Directors
Internal self-evaluation of the 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 six 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 relationships and communication;
5. The Director's professionalism and continuing education; and
6. Internal control.
■ External performance evaluation of the Board of Directors
Evaluation
cycles
Evaluation
periods
Scope of
evaluation
Method of
evaluation
Content of
evaluation
once every three years
From January 1, 2023 to December 31, 2023
Board of Directors, Functional Committees (Including Audit Committee, Remuneration
Committee), individual Directors
Methodology incorporated the application of questionnaires, conducting interviews, and
performing document reviews and analyses.
◆The company entrusted Ernst & Young Business Consulting Services Co., Ltd. to conduct
a performance evaluation of Compal Electronics, Inc.'s Board of Directors, which
includes three dimensions, the structure, members, and processes and information of
the Board, and eight evaluation items covering structure and processes of the Board,
composition of the Board, corporate and organizational structure, roles and
responsibilities, behavior and culture, training and development of the Board, risk
management oversight, oversight of report/ disclosure and performance.
◆The reason for the independence of the external professional organization:
Ernst & Young Management Consulting Co., Ltd. is not an affiliate of the Company, nor
45
does it have a business relationship that could affect its independence. The personnel
and their immediate family members have not held positions of significant influence in
the Company, nor do they have a direct or indirect financial interest or have received
any gifts from the Company.
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 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 a reference in determining individual Director’s compensation and their nomination for
a next office term. The performance evaluation results have been published on the Company's
website.
In 2022, 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.
In 2023, in order to strengthen corporate governance and risk management functions, it is to set
up a Risk Management Committee. In addition, in conjunction with the added external
performance evaluation mechanism in “Board of Directors Self-Assessment of Performance,”
passed by the Board on November 10, 2023, and the Company commissioned an external
independent professional organization to conduct an external performance evaluation of the
overall Board of Directors for the first time in 2023.
46
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,
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.
internal audits, accounting policies and procedures, major asset
▓ 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
Honorary Doctorate, Department of Electrical Engineering, National Chiao
Tung University
Chairman, Vice Chairman, CEO, President and Honorary Vice Chairman of
United Microelectronics Corp.
Chairman of Faraday Technology Corp., Clientron Corp.
The individual has rich knowledge and adequate experience in business
operations, performance evaluation, investment, and 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 Company's business.
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.
Part-time professor-level professional and technical personnel in the
Department of Electrical Engineering, National Taipei University of
Technology and the Department of Digital Multimedia Design, Kainan
University; Adjunct professor at the Department of Electronics, National
Taiwan University of Science and Technology and the Department of
Electronics, Yuanzhi University. Government positions such as Minister of
Transportation and Director of the Civil Aviation Bureau of the Ministry of
Transportation.
The individual has professional capability in the communications network
47
Title
Name
Professional Qualifications and Experience
field, rich knowledge, and adequate experience in 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 Company's business.
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 the electronics
industry, business operations, and 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 Company's business.
Committee
Member
Wen-Chung Shen
▓ 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 six Audit Committee meetings during 2023 (A). The attendance records of the Independent
Directors are as follows:
Title
Name
Convener
Committee Member
Committee Member Wen-Chung Shen
Min-Chih Hsuan
Duei Tsai
Attendance in
Person (B)
4
6
6
By Proxy
2
0
0
Attendance Rate (%)
[B/A]
66.67%
100%
100%
Remarks
-
-
-
■ The major audit items of the Audit Committee in 2023 are as follows:
1. Annual and interim financial reports, Business reports, and Proposals for distribution of profits.
2. To evaluate the CPAs’ independence and competence in performing the financial report audit.
3. Matters in which a Director is an interested party.
4. A material monetary loan and providing of Corporate Guaranty Letter.
5. A material asset transaction.
6. Assessment of the design and operation effectiveness of the internal control system.
7. The defects, irregularities, and the status of corrections in the internal control system.
8. Annual audit plan for 2024.
9. Compliance with the relevant laws and regulations by the Corporation.
▓ Other notes:
1. The Company should record the date of the Board of Directors’ meeting, the term, content of
discussion, the result of the Audit Committee’s decision and the actions the Company has taken in
response should any of the following situations arise in the operation of the Audit Committee:
(1) Matters listed in Item 5, Article 14 of the Securities and Exchange Act:
Board of
Directors
Meeting
Content of discussion and actions taken in response
8th Meeting
(14th Term)
2023.3.15
1. To approve the Audited Consolidated Financial Report and
Parent Company Only Financial Report for the year 2022
2. To approve the Business Report for the year 2022
3. To approve the proposal for the Distribution of Earnings
for the year 2022
48
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.
V
V
V
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.
4. To approve fund loan to 100% owned subsidiary
Compalead Eletrônica do Brasil Indústria e Comércio Ltda.
5. To approve fund loan to 100% owned subsidiary Compal
Eletrônica Da Amazônia Ltda.
6. To approve fund loan to 70% owned subsidiary
Kinpo&Compal Group Assets Development Corporation
7. To approve the “Non-Assurance Service Pre-Approval
Policy - General Policy“
8. To evaluate CPAs’ independence and competence in
performing financial report audits.
9. To approve the Internal Control System Statement for the
year 2022
V
V
V
V
V
V
None
None
None
None
None
None
▲Resolution adopted by the Audit Committee (2023.3.15):
Upon solicitation of comments by the Chairman, no objection was 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:
・Except for motion 6
Upon solicitation of comments by the Chairman, no objection was addressed, and the resolution
was adopted unanimously by the Committee Members present.
・Motion 6
Chairman Sheng-Hsiung Hsu asked the Independent Director Min Chih Hsuan to act as a deputy
chairman to preside at this meeting to discuss and vote 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 conflict of interest, they 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
chairman, no objection was addressed and the resolution was adopted unanimously by the
remaining Directors present.
1. To approve the 1Q 2023 Consolidated Financial Review
V
None
Report
9th Meeting
(14th Term)
2023.5.08
2. To approve the release of non-competition restrictions for
the managers
3. To approve to obtain newly issued shares of ARCE
Therapeutics, Inc. by participating in the capital injection
by cash.
4. To approve the proposal for providing Corporate Guaranty
Letter to Quanta Computer Inc.
V
V
V
None
None
None
▲Resolution adopted by the Audit Committee (2023.5.8):
Upon solicitation of comments by the Chairman, no objection was 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:
・Except for motions 2 and 3
Upon solicitation of comments by the Chairman, no objection was addressed and the resolution
was adopted unanimously by the Committee Members present.
・Motion 2
An interested party relationship existed with Director Jui-Tsung Chen. In order to avoid a conflict
of interest, this Director excused himself from discussion and voting on this proposal. Upon
solicitation of comments by the Chairman of the meeting, no objection was addressed and the
resolution was adopted unanimously by the remaining Directors present.
・Motion 3
Chairman Sheng-Hsiung Hsu asked Independent Director Duei Tsai to act as a deputy chairman
49
Board of
Directors
Meeting
10th Meeting
(14th Term)
2023.7.18
11th Meeting
(14th Term)
2023.8.11
12th Meeting
(14th Term)
2023.9.07
13th Meeting
(14th Term)
2023.11.10
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.
to preside at this meeting to discuss and vote on this proposal. To avoid conflict of interest,
Directors Directors Jui-Tsung Chen, Chieh-Li Hsu, Chung-Pin Wong, who is also acting as Director
of the ARCE Director Sheng-Hsiung Hsu, the Father-son relationship, who are relatives within first
degree kinship of Director Chieh-Li Hsu of ARCE, recused and excluded themselves from
discussion and voting on this proposal in accordance with the Company’s Regulations Governing
the Proceedings of Board of Directors Meetings. Upon solicitation of comments by the deputy
chairman, no objection was addressed and the resolution was adopted unanimously by the
remaining Directors present.
1. To approve obtaining newly issued shares of AcBel
Polytech Inc. by participating in the capital injection by
cash.
V
None
▲Resolution adopted by the Audit Committee (2023.7.18):
Upon solicitation of comments by the Chairman, no objection was 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:
Chairman Sheng-Hsiung Hsu asked Independent Director Min-Chih Hsuan to act as a deputy
chairman to preside at this meeting to discuss and vote on this proposal. To avoid conflict of
interest, Director Chieh-Li Hsu who is also acting as Director of the AcBel, Sheng-Hsiung Hsu and
Chieh-Li Hsu are first cousins (father and son), Sheng-Hsiung Hsu and Sheng-Chieh Hsu are
second cousins (brothers), 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, no objection was
addressed and the resolution was adopted unanimously by the remaining Directors present
1. To approve the 1H 2023 Consolidated Financial Review
V
None
Report
V
V
2. To approve a loan to Henghao Technology Co. Ltd.
3. To approve a loan to Unicom Global, Inc.
▲Resolution adopted by the Audit Committee (2023.8.11):
Upon solicitation of comments by the Chairman, no objection was 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, no objection was addressed and the resolution
was adopted unanimously by the Committee Members present.
1. To approve obtaining newly issued shares of Cal-Comp
Electronics (Thailand) Public Company Limited. by
participating in the capital injection by cash.
None
None
None
V
▲Resolution adopted by the Audit Committee (2023.9.07):
Upon solicitation of comments by the Chairman, no objection was 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:
Chairman Sheng-Hsiung Hsu asked Independent Director Min-Chih Hsuan to act as a deputy
chairman to preside at this meeting to discuss and vote on this proposal. To avoid conflict of
interest, Directors Sheng-Hsiung Hsu, Chieh-Li Hsu, Sheng-Chieh Hsu, who are also acting as
Director of the CCET, 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, no objection was addressed
and the resolution was adopted unanimously by the remaining Directors present
1. To approve the 3Q 2023 Consolidated Financial Report
2. To approve obtaining newly issued shares of
None
V
Kinpo&Compal Group Assets Development Corporation.
by participating in the capital injection by cash.
3. To approve fund loan to 100% owned subsidiary COMPAL
EUROPE (POLAND) Sp. z o.o
V
V
None
None
50
Board of
Directors
Meeting
Content of discussion and actions taken in response
4. To propose approval of the annual audit plan for year
2024
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.
V
None
▲Resolution adopted by the Audit Committee (2023.11.10):
Upon solicitation of comments by the Chairman, no objection was 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:
・Except for motion 2
Upon solicitation of comments by the Chairman, no objection was addressed and the resolution
was adopted unanimously by the Committee Members present.
・Motion 2
Chairman Sheng-Hsiung Hsu asked the Independent Director Wen-Chung Shen to act as a deputy
chairman to preside at this meeting to discuss and vote 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 conflict of interest, they 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
chairman, no objection was 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, the reasons for the
avoidance, and the voting and attendance status: None.
3. Status of communication between Independent Directors, Internal Audit Officer, and CPA:
(1) Method of communication between Independent Directors, the Internal Audit Officer, and CPA:
• After the Internal Audit Officer has submitted an audit report and follow-up report, he/she
should provide the completed audited items to the Independent Directors for their review by
the end of the following month. Should the Independent Directors require clarification of the
audit and follow-up, they should contact the internal audit supervisor. The internal auditor shall
report the audit results to the Audit Committee on a quarterly basis and discuss the relevant
matters in person with the committee.
• The Independent Directors must communicate with the CPA on a yearly basis through the Audit
Committee or Board of Directors’ Meeting. The CPA shall report to the Independent Directors
on the results of the financial statement audit and other pertinent legal requirements while the
Audit Committee shall also evaluate the selection, independence, and fitness of the CPA engaged
by the Company.
(2) Summary of the communications between Independent Directors and Internal Audit Officer:
Audit
Committee
8th Meeting
(3rd Term)
2023.3.15
Content of discussion
1. Report on the operational status of
the internal audit activities
2. To approve the Internal Control
51
Results
The report was reviewed by the Audit
Committee, and independent directors raised no
objections or further instructions.
The proposal was approved by the Audit
Audit
Committee
9th Meeting
(3rd Term)
2023.5.8
11th Meeting
(3rd Term)
2023.8.11
13th Meeting
(3rd Term)
2023.11.10
14th Meeting
(3rd Term)
2024.2.29
15th Meeting
(3rd Term)
2024.3.12
Content of discussion
System Statement for the year 2022
1. Report on the operational status of
the internal audit activities
1. Report on the operational status of
the internal audit activities
1. Report on the operational status of
the internal audit activities
2. To propose for approval of annual
audit plan for year 2024
1. Report on the operational status of
the internal audit activities
1. Report on the operational status of
the internal audit activities
2.To approve the Internal Control
System Statement for the year 2023
Results
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 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.
52
(3) Summary of the communications between the Independent Directors and CPA:
Audit
Committees
Meeting
8th Meeting
(3rd Term)
2023.3.15
14th Meeting
(3rd Term)
2024.2.29
Content of discussion
Results
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
statements.
‧ The types of audit opinion
‧ The audit scope (including Explanation of key audit items)
‧ The audit Findings
1. To approve the 2023 Audited Consolidated Financial
Statements and Parent Company Only Financial Statements
‧ Declaration of Independence
‧ The responsibility of auditors in auditing financial
statements.
‧ The audit scope
‧ The audit Findings and Conclusions
‧ Communication on Audit Firm Quality Management
System
The proposal was
approved by the Audit
Committee and will be
resolved by the Board of
Directors
The proposal was
approved by the Audit
Committee and will be
resolved by the Board of
Directors
4. Status of individual communication between independent directors, internal audit supervisor
and CPA:
Forum
2023.11.10
Object
Internal
Audit
Officer
Communication focus
1. The risk assessment model used by the
internal audit office when formulating
the annual audit plan.
CPA
1. Annual audit plan
2. Audit Quality Indicators in 2022
Results
Agree with the current assessment
method of the internal audit office.
The independent directors have no
issue with the content of
communication
53
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
November 10, 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
“Directions Concerning Securities Market Regulatory Matters for TWSE Listed Companies and Their
54
No deviations were
found
No deviations were
found
No deviations were
found
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
Directors, Supervisors, and Major Shareholders” when they come aboard to make them aware of
the company insider rules.
In accordance with the 'Key Points for Managing Insider Trading Prevention,' when the company
becomes aware of significant internal information, it must not trade in the company's or its
invested businesses' stocks, other securities with equity characteristics, or non-equity corporate
bonds, whether in its own name or in the name of others, until the information is clarified and
remains unpublished, or within eighteen hours after it has been made public. The directors of the
company are not allowed to trade their stocks during the closed period of 30 days before the
announcement of the annual financial report and 15 days before the announcement of the
quarterly financial report. The company also reminded directors by email seven days before the
closure that they are prohibited from buying and selling the company's stocks.
III. Assembly and obligations of
the Board of Directors
1. Has the board devised and
implemented policies to
ensure the diversity of its
members?
Yes
2. Apart from the Remuneration
Yes
Committee and Audit
Committee, has the Company
assembled other functional
committees at its own
discretion?
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. These rules and regulations are formulated and include,
without being limited to, the following two general standards:1. Basic requirements and values:
Gender, age, nationality and culture; 2. Professional knowledge and skills. 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 25.
Apart from the Remuneration and Audit Committees, the Company also has a Sustainability
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
55
No deviations were
found
No deviations were
found
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
Board of Directors to review the implementation of risk management and make necessary
recommendations for improvement.
No deviations were
found
3. Has the Company established
Yes
The Board of Directors adopted the “Rules of Self-Evaluation of the Board of Directors and
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?)
Functional Committees Performance” on March 30, 2020. The performance evaluation scope
covers the evaluation of the Board as a whole, as well as individual Directors and Functional
Committees. Methods of evaluation 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 a
reference in determining individual Director’s compensation and their nomination for the next
office term.
In order to implement corporate governance and enhance the functions of the company's board
of directors, the Board of Directors amended the “Rules for Performance Evaluation of the Board
of Directors and Functional Committees” on November 10, 2023. The Company shall appoint an
external independent professional institution or a panel of external experts and scholars to
conduct a performance evaluation at least once every three years. The external board
performance evaluations shall be completed before the end of the first quarter of the following
year, and the evaluation results shall be reported to the Board of Directors.
▓Internal performance evaluation of the Board of Directors and Functional Committees in 2023
are as follows:
Items
Individual board members
Board of Directors
Audit Committee
Total average
4.61
4.80
5.00
Evaluation level
Good
Good
Excellent
56
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
Remuneration Committee
Sustainability Committee
5.00
4.67
Good
Good
■ External performance evaluation of the Board of Directors and Functional Committees in 2023
The company has appointed EY Business Advisory Services Inc. ("EY") to conduct a performance
evaluation of the board of directors for the first time in November 2023. EY’s methodology
incorporated the application of questionnaires, conducting interviews, and performing document
reviews and analyses. EY executed a performance evaluation of the board of directors between
January 1 and December 31, 2023.
According to the evaluation, Compal's performance in the structure, members, and information
processes of the board of directors is deemed advanced. Suggestions are presented below to
continuously optimize and refine the operation of the board of directors. According to the
evaluation, Compal's performance in the structure, members, and information processes of the
board of directors is deemed advanced (Note). Suggestions are presented below to continuously
optimize and refine the operation of the board of directors. The evaluation result was reported
to the Board of Directors on February 29, 2024 and disclosed on the company’s website for
investors’ reference.
Note: The evaluation result will be divided into as follows:
˙Basics: Comply with the basic requirements of the competent authority and relevant laws and
regulations.
˙Advanced: Comply with the basic requirements of the competent authorities and relevant laws
and regulations, and have a set of established and effective practices, or actively improve the
performance of this aspect.
˙Benchmark: Not only is it better than the basic requirements of the competent authority and
relevant laws and regulations, but the practice is equivalent to a benchmark model.
4. Is the independence of
Yes
external auditors assessed on
a regular basis?
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
Accountants of the Republic of China. The CPA cannot be a Director, supervisor, or shareholder of the
No deviations were
found
57
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
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 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 62) 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, and the experience in auditing, 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 will be approved by the Audit
Committee held on April 16, 2024, and will be resolved by the Board of Directors held on April 16, 2024. 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, reviewing the legality of Independent Director qualifications, conduct matter related to Director
change, 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
2023, refer to page 62.
58
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 in complying
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
Yes
No
Summary description
Actual governance
Deviation and causes
of deviation
Yes
The Company addresses its stakeholder relations on its corporate website, Sustainability report,
and Compal ESG 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
Yes
The Chinatrust Commercial Bank – Securities Trust has been appointed as the share administration
agency responsible for handling shareholder affairs and meetings and for providing share
administration services.
No deviations were
found
Assessment criteria
and shareholders' meeting,
etc.)
V. Has the Company provided
proper communication
channels and created
dedicated sections on its
website to address corporate
social responsibility issues that
are of significant concern to
stakeholders (including but not
limited to shareholders,
employees, customers, and
suppliers)?
VI. Does the Company engage a
share administration agency
to handle shareholder
meeting affairs?
VII. Information disclosure
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,
Yes
performance, corporate governance and shareholder meetings.
‧ 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/).
59
No deviations were
found
No deviations were
found
Assessment criteria
Actual governance
Deviation and causes
of deviation
Yes
No
Summary description
broadcasting of investor
conferences via the Company
website)?
3. Does the Company announce
Yes
and declare an annual financial
report within two months
after the end of the fiscal year
and announce and declare the
first, second, and third quarter
financial reports and the
operation of each month
ahead of the required time
limit?
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?
‧ The Company’s CSR to publicly disclose the Company's ESG actions.
(URL: https: //www.facebook.com/compalCSR).
The Company’s financial reports have been announced and filed within two months after the end
of the fiscal year since fiscal year 2023. In addition, the Company’s announcement and filing of
financial reports for the year and the first, second and third quarters, as well as business
operational results for each month, were ahead of the required time limit.
No significant
difference
No deviations were
found
Investor relations (please refer to pages 64)
Employee rights and care for employees (please refer to page 63)
•
• Code of Conduct for Directors, managers, and employees (please refer to page 64)
•
• Supplier relations and operation status of customer policy (please refer to page 64-65)
• Stakeholders’ interests (please refer to page 65)
• Risk management practice and framework (please refer to pages 65-68), Risk analysis (please
refer to pages 214)
• Purchasing liability coverage for the Company’s Directors & Supervisors(please refer to page
70)
• Continuing education for Directors and managers (please refer to pages 70-72)
• Succession plan for Board members and key Management team (please refer to page72)
•
Acquisition of certificate(s) by the Company's personnel related to the transparency of
financial information (please refer to page 73)
60
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 the subsidiary Kinpo Group Management Consultant Company or training provided by external professional organizations. In 2023, members
of the Board of Directors completed a total of 107 hours of training.
• In 2023, establish a Risk Management Committee the enactment of the “Risk Management Best Practice Principles”, “Risk Management Committee Charter ",
“Human Rights Policy”, “Tax Policy and Management Guidelines”, and the amendment “Corporate Governance Best-Practice Principles", “Sustainable Development
Best Practice Principles", “Rules for Performance Evaluation of the Board of Directors and Functional Committees”, “Management Rules for Preventing Insider
Trading” to “Main Point of Insiders Trading Prevention Management”, “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 2023, EY Business Advisory Services Inc., an external professional and independent organization, was appointed to conduct the performance evaluation of the
Board of Directors.
• The corporate governance unit irregularly gave referrals for relevant training information from the competent authorities, external professional institutions, and
Kinpo Group Management Consultant Company from time to time. The company and Kinpo Electronics, Inc. also regularly hold refresher courses.
• We uploaded the Chinese and English Annual Report of shareholders’ meeting 18 days before the shareholders’ meeting.
• In 2023, the " Corporate Governance Best-Practice Principles " and the " Main Point of Insiders Trading Prevention Management " were revised to prohibit directors
and other insiders from using undisclosed information in the market to buy and sell securities. The content includes that directors are not allowed to trade securities
thirty days before the announcement of the annual financial report. , and trade its stocks during the closed period of 15 days before the announcement of each
quarterly financial report.
61
▓ Items to evaluate the independence of the CPA:
Item
Evaluation
result
Meets independence
or not
Whether or not the CPA has a direct or material indirect financial interest
in the Company
Whether or not the CPA has a 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
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
▓ The results of Compal’s corporate governance unit operations for 2023 are 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 Risk Management Committee the enactment of the “Risk Management Best Practice
Principles”, “Risk Management Committee Charter", “Human Rights Policy”, “Tax Policy and Management
Guidelines”, and the amendment “Corporate Governance Best-Practice Principles", “Sustainable
Development Best Practice Principles", “Rules for Performance Evaluation of the Board of Directors and
Functional Committees”, “Management Rules for Preventing Insider Trading” to “Main Point of Insiders
Trading Prevention Management”, “Risk management policy of Compal Group” to “Company's Risk
Management Policies and Procedures” were proposed to accommodate the corporate governance, all of
which have been submitted to the Board of Directors for resolution.
‧ The performance evaluation of directors and independent directors, the Board of Directors, the audit
committee, and the remuneration committee are submitted to the Board of Directors.
‧ EY Business Advisory Services Inc., an external professional and independent organization, was appointed
to conduct the performance evaluation of the Board of Directors.
62
‧ Planned the communication meeting between Independent Directors, Internal Audit Supervisors and CPA
to have the Audit Committee determine the independence and fitness of the CPA engaged by the Company,
as well as to ensure sound corporate governance. For the records of the communication meetings, please
see page 51.
‧ Pursuant to “Directions for the Implementation of Continuing Education for Directors and Supervisors of
TWSE Listed and TPEx Listed Companies”, Compal has advocated and encouraged Directors to take part in
the courses. In addition, the corporate governance unit irregularly gave referrals relevant training
information from the competent authorities, external professional institutions, and Kinpo Group
Management Consultant Company from time to time. The company and Kinpo Electronics, Inc. also
regularly hold refresher courses.
‧ The Company disclosed and announced important financial and operational information in conjunction
with the events of the Board of Directors Meetings and Shareholders Meetings. In addition, the Company
has held financial result announcement conferences at least twice a 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 Shareholder 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 on 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 2023 came to USD 50,000 thousand, which was roughly equivalent to TWD 1,582,000
thousand. Vital information relating to their liability insurance was reported to the Board of Directors at
the latest meeting of the Board of Directors.
‧ The Corporate Governance Officer took 12 hours of continuing education. For the exact education program,
please see page 72.
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 employees understand and comply. 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 has
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
63
internally and offers employees the freedom to choose or transfer to positions they consider suitable, and
thereby assuring satisfaction across the workforce and protecting employees' interests.
Compal provides employees with the following health-related facilities and services outside of work:
‧
‧
‧
Common dining: Employee dining facilities have been made available to serve nutritious and healthy foods.
Recreation centers: Places where employees may hold club activities, exercise, and socialize.
Spiritual, health, and arts seminars: The Company organizes health seminars, spiritual seminars, musical
performances, and art exhibitions from time to time, and uses them as a means of stress relief to cater to
employees' physical and mental health.
Infirmary and stationed physicians: Employees may consult physicians and access timely medical
assistance for themselves 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
purchases 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 the 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 a full understanding of the Company's business performance and long-term goals.
In 2023, Compal proactively participated in online investor forums and investor conference calls, hosted by
either local or foreign brokers every quarter, 13 events in total, to regularly update its financial results and
business progress to shareholders and investors, which to enhance investors' understanding for the Company
operation and increase the communication and engagements.
▓ Supplier relations and execution of customer policy
The Company signs contracts with all suppliers and customers not only to protect the interests of both parties,
but also to maintain a strong working relationship.
64
The Company maintains close cooperation with suppliers via systematic method in order to implement
effective communication, follow-up and management. Since 2015, Compal has established the Supplier
Opinion on the Compal Procurement System (CPS) platform to provide improved communication channel with
suppliers. In 2023, Compal further planned the upgrade of the supplier management system of “Vendor
Integration Portal”, such that through system platform upgrade and integration, the Company is able to satisfy
the due diligence operation on various management policies of ESG sustainable supply chain more efficiency,
and to also demonstrate the commitment in achieving sustainable operation with suppliers jointly.
Each year, the Procurement Center and Safety Regulation and Environmental Protection Affairs Department
organizes the Supplier Conference jointly. For 2020~2021, due to the impact of COVID-19 pandemic, the
meeting convention method was changed to online meeting. In 2022, third party consulting company was also
invited to participate in the Supplier Conference, and contents related to global green product regulatory
updates and implementation guidelines, RBA VAP v7.0 updates, conflict minerals, introduction to Compal’s
supplier management system and environmental education in the supply chain were explained to 205
suppliers attending the Supplier Conference. In 2023, to accelerate supply chain’s participation in net zero
emissions and carbon reduction, Compal invited 34 key suppliers to join Compal’s ONE+N electronic industry
supply chain net zero acceleration program, and a physical Supplier Conference was also held on September
13, 2023. Compal continues to communicate the latest trend of sustainable supply chain to suppliers through
the Supplier Conference and also works with suppliers to improve the ESG performance continuously.
Compal is committed to providing customer service while also prioritizing customer privacy and confidentiality.
We sign confidentiality agreements with our customers to ensure the security of their confidential information.
Additionally, we require employees to adhere to intellectual property protection policies, gradually
strengthening confidential management and establishing a data classification system. We have implemented
various measures, including the introduction of cloud virtual desktops and centralized data backup
management systems, the establishment of
inspection systems, the
implementation of electronic storage device tracking controls, and the management of filming behaviors
within the factory premises. We require project teams to sign confidentiality agreements based on the level of
confidentiality and strengthen procedures for managing departing employees to meet the highest standards
of information security in the industry. In 2023, there were no penalties imposed due to appeals from
customers or regulatory authorities, demonstrating our rigorous protection of confidential customer
information and strengthening customer confidence in Compal. We collect quarterly performance evaluation
scores from major OEM customer partners, which account for ninety percent of the total revenue, to assess
achievement and execution efficiency. The customer satisfaction score in 2023 was 89.10%, maintaining a
customer satisfaction level of over 89% for four consecutive years, solidifying Compal's good partnership with
its customers.
internal and external email
▓ Stakeholders' interests
Interested parties 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 a 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 expects that the policy can identify the operation risk in advance. Therefore, the
65
Company can adopt appropriate assessments and actions to transform, reduce or prevent the risks.
(1) Comply with the policies and regulations of the country in which it operates:
relations, R&D, human
supplier management, customer
The Company has its own financial, sales, and accounting system, and a system for monitoring the
financial and business information of its subsidiaries in accordance with "Regulations Governing the
Establishment of Internal Control Systems by Public Companies". The Company also has guidelines in place
for
financial affairs,
credit/endorsement/ guarantee arrangements with affiliated businesses, and acquisition/disposal of key
assets. These policies, risk assessment standards, and procedures serve as guidelines 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.
resources,
(2) Establish the risk control procedures in accordance with the international standard systems.
In accordance with the methodology of ISO 31000, the Company performs 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 was developed by the company to consider the organization's structures,
authorization, and 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 achieves the goal of implementing internal control through the internal
control self-assessment and performance assessment.
Besides, the company has referred to the Three Lines of Defense (TLD) model for risk management issued
by the IIA, and the company operates practices to set up organization and procedures for risk
management.
(3) From the implementation perspective, all the divisions of the Company evaluate various business risks to
make contingency plans, while preparing the 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 215).
66
(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 evaluate 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-checks become outdated. We use the
information system continuously to save labor costs, enhance the effectiveness of the Three Lines of
Defense (TLD) model through IT techniques and, most importantly to achieve the goal of warning in
advance.
67
Board of Directors,
Audit Committee,
Risk Management
Committee,
Auditing Office
(Level 3)
‧ Auditing Office:
Risk inspection,
evaluation, supervision,
improvement and
reporting
‧ Board of Directors,
‧ Audit Committee,
‧ Risk Management
Committee
Decision-making and
ultimate control over risk
evaluation
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
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
‧ Business
departments/centers
(Note 1)
‧ Common departments
(Note 3)
‧ Corporate investment review
‧ Executive management meeting
‧ Subsidiaries monitoring and
management report
benefits
‧ Expansion of factory, production site
and equipment
‧ Centralized purchase or sale
‧ Business
departments/centers
(Note 1)
‧ Common departments
(Note 3)
‧ Monthly operating meeting
‧ Production and marketing
meeting
‧ Equity transfer involving Directors,
‧ Share administration
supervisors, and major shareholders
affairs
‧ Change of management
‧ Board of Directors
‧ Share administration affairs
‧ Head of Finance/Accounting
‧ Litigation and non-contentious cases
‧ Handling of product safety incidents
‧ Other operational affairs
‧ Product risk management
‧ Managers of all levels
‧ Legal affairs
‧ Business groups/centers (Note 2)
‧ Personnel behavior, ethics, and
conduct
‧ Managers of all levels
‧ HR and Administration
‧ Rules (including SOPs), internal
‧ Managers of all levels
control system and compliance with
regulations
‧ 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
‧ Insider Trading Prevention Office
‧ Information security management ‧ Managers of all levels
‧ 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, Worldwide PC Sub.BG, Global Operations & Quality Sub. BG, GOBG, SD Operation Sub. BG, SDBG, etc.
3. Common departments: Finance, Accounting, HR and Administration, Investment Planning and Management Office, Legal Affairs
Office, etc.
68
3. The actual performance of risk management in 2023
(1) Committee Appointment
On May 8, 2023, Compal established the Risk Management Committee with the approval of the
Board of Directors. According to the regulations, the first session of the Risk Management
Committee consists of all independent directors Min Chih Hsuan, Duei Tsai, Wen-Chung Shen and
director Chung-Pin Wong. Independent director Min Chih Hsuan was elected by all members as the
convener and chairman of the meeting.
(2) Attendance of Members at Risk Management Committee Meetings:
‧ The term of the 1st committee is from May 8, 2023 to August 26, 2024.
‧
In 2023, the Risk Management Committee held two meetings (A) and the qualifications and
attendance of Committee members are as follows:
Title
Name
Major
Actual
attendance
(B)
Number of
delegated
attendances
Attendance
Rate (%)
[B/A]
Convener
Min Chih Hsuan
Committee
Member
Committee
Member
Committee
Member
Duei tsai
Wen-Chung Shen
Chung-Pin Wong
(3) Management System:
Business Management,
Performance Management,
Investment, Mergers and
Acquisitions
Operation Management,
Information Security
Business Management,
Risk Management
Business Management,
Performance Management,
Risk Management
0
2
2
2
1
0
0
0
0%
100%
100%
100%
In response to regulatory requirements and to implement corporate risk management, Compal
revised the Risk Management Practice Principles, Risk Management Policies and Procedures, and
Corporate Governance Practices Principles at the board meeting on May 8, 2023.
(4) Reporting Process:
On November 10, 2023, Compal reported the annual risk management performance to the Risk
Management Committee and submitted it to the Board of Directors for review.
(5) Risk Evaluation Mechanism:
Compal has established a risk evaluation mechanism to analyze and summarize the risk appetite and
then set related action plans.
69
▓ 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 2023 is 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 1,582,000,000)
From:2023.11.21
To: 2024.11.21
2024.02.29
▓ 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 2023
includes:
˙Continuing education for directors
Date of
training
Name
Title
Organized by
Course title
Chairman
Chairman
Chairman
Sheng-Hsiung
Hsu
Sheng-Hsiung
Hsu
Sheng-Hsiung
Hsu
2023.05.15
Securities and Futures
Institute
2023.11.10
Taiwan Corporate
Governance Association
2023.11.14
Taiwan Corporate
Governance Association
Vice Chairman
Jui-Tsung Chen 2023.07.14 Compal Electronics, Inc.
Vice Chairman
Jui-Tsung Chen 2023.09.08
Vice Chairman
Jui-Tsung Chen 2023.10.12
Vice Chairman
Jui-Tsung Chen 2023.11.10
Taiwan Institute of
Directors
Taiwan Institute of
Directors
Taiwan Corporate
Governance Association
Director
Wen-Being
Hsu
2023.11.10
Taiwan Corporate
Governance Association
Director
Chieh-Li Hsu
2023.02.22
Director
Chieh-Li Hsu
2023.11.10
Director
Chieh-Li Hsu
2023.11.14
Director
Charng-Chyi Ko 2023.05.15
Director
Charng-Chyi Ko 2023.05.26
Director
Charng-Chyi Ko 2023.11.10
Director
Charng-Chyi Ko 2023.11.14
Director
Sheng-Chieh
Hsu
2023.07.04
Taiwan Institute of
Directors
Taiwan Corporate
Governance Association
Taiwan Corporate
Governance Association
Securities and Futures
Institute
Kinpo Group Management
Consultant Company
Taiwan Corporate
Governance Association
Taiwan Corporate
Governance Association
Taiwan Stock Exchange
Corporation
70
the business
Competitiveness VS Viability, ESG trends
and strategies
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Trends and risk management of digital
technology and artificial intelligence
Global Economic Outlook for the Second
Half Year of 2023
ESG rating analysis in the capital market
and
implications of
sustainability evaluation
Legal Risks of Enterprise Investment and
Financing
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Centennial Enterprise Strategy Turning
Point Series-2 Innovation Wheel
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Trends and risk management of digital
technology and artificial intelligence
Competitiveness VS Viability, ESG trends
and strategies
Challenges and responses of Taiwanese
companies under global risks in 2023
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Trends and risk management of digital
technology and artificial intelligence
2023 Cathay Sustainable Finance and
Climate Change Summit Forum
Hours of
training
3
3
3
1
3
3
3
3
3
3
3
3
2
3
3
6
Title
Name
Date of
training
Organized by
Course title
Hours of
training
Director
Sheng-Chieh
Hsu
2023.11.10
Taiwan Corporate
Governance Association
Director
Yen-Chia Chou 2023.11.10
Taiwan Corporate
Governance Association
Director
Director
Director
Chung-Pin
Wong
Chung-Pin
Wong
Chung-Pin
Wong
2023.07.14 Compal Electronics, Inc.
2023.11.10
Taiwan Corporate
Governance Association
2023.11.24
Taiwan Institute of
Directors
Director
Chiung-Chi Hsu 2023.11.10
Taiwan Corporate
Governance Association
Director
Director
Director
Director
Director
Ming-Chih
Chang
2023.11.10
Taiwan Corporate
Governance Association
Sheng-Hua
Peng
Sheng-Hua
Peng
Sheng-Hua
Peng
Sheng-Hua
Peng
2023.04.13
Taiwan Institute of
Directors
2023.05.26
Kinpo Group Management
Consultant Company
2023.07.14 Compal Electronics, Inc.
2023.11.10
Taiwan Corporate
Governance Association
Independent
Director
Min Chih
Hsuan
2023.01.13
Taiwan Corporate
Governance Association
Independent
Director
Min Chih
Hsuan
2023.12.27
Taiwan Corporate
Governance Association
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Duei Tsai
2023.04.13
Taiwan Institute of
Directors
Duei Tsai
2023.05.16
Duei Tsai
2023.05.26
Duei Tsai
2023.08.09
Duei Tsai
2023.10.13
Duei Tsai
2023.11.10
Securities and Futures
Institute
Kinpo Group Management
Consultant Company
Securities and Futures
Institute
Taiwan Corporate
Governance Association
Taiwan Corporate
Governance Association
Independent
Director
Wen-Chung
Shen
2023.4.13
Taiwan Institute of
Directors
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Global Economic Outlook for the Second
Half Year of 2023
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Things to be noted in corporate IPO
planning: General company and group
spin-offs
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
KPMG Taiwan 2023 Business Leader
Academy Forum: Business Opportunities
and Challenges Under the Net Zero
Spotlight
Challenges and responses of Taiwanese
companies under global risks in 2023
Global Economic Outlook for the Second
Half Year of 2023
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
Explanation and case
introduction of
directors and supervisors’ responsibilities
under corporate governance
Enterprise resilience-oriented
information security management and
risk control
KPMG Taiwan 2023 Business Leader
Academy Forum: Business Opportunities
and Challenges Under the Net Zero
Spotlight
Global future risks and opportunities for
sustainable transformation
Challenges and responses of Taiwanese
companies under global risks in 2023
Kindness. True beauty. Charity. Doing it
right. Doing it well is good business.
Trends and risk management of digital
technology and artificial intelligence
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
KPMG Taiwan 2023 Business Leader
Academy Forum: Business Opportunities
3
3
1
3
3
3
3
3
2
1
3
3
3
3
3
2
3
3
3
3
71
Title
Name
Date of
training
Organized by
Course title
Hours of
training
Independent
Director
Wen-Chung
Shen
2023.5.26
Kinpo Group Management
Consultant Company
Independent
Director
Wen-Chung
Shen
2023.11.10
Taiwan Corporate
Governance Association
and Challenges Under the Net Zero
Spotlight
Challenges and responses of Taiwanese
companies under global risks in 2023
Global trends and business opportunities
for low-carbon economy and corporate
low-carbon innovation in 2023
2
3
˙ Continuing education for managers
Date of
training
Name
Title
Organized by
Course title
Hours of
training
Vice President
Cheng-Chiang
Wang
2023.07.14 Compal Electronics, Inc.
Vice President Guo-Dung Yu 2023.07.14 Compal Electronics, Inc.
Global Economic Outlook for the Second
Half of 2023
Global Economic Outlook for the Second
Half of 2023
Corporate
Governance
Officer
Corporate
Governance
Officer
Corporate
Governance
Officer
Corporate
Governance
Officer
Cheng-Chiang
Wang
2023.04.18
Accounting Research and
Development Foundation
Corporate Ethics and Sustainable
Development
Cheng-Chiang
Wang
2023.05.18
Accounting Research and
Development Foundation
To Correctly Understand the Corporate
Governance Evaluation
Cheng-Chiang
Wang
2023.05.19
Accounting Research and
Development Foundation
Analysis of the latest corporate
governance policies and laws and
common deficiencies
Cheng-Chiang
Wang
2023.09.15
Taiwan Corporate
Governance Association
Board Meetings: Common Board
Meeting Mistakes for Listed Companies
Accounting
Officer
Cheng-Chiang
Wang
2023.10.16-
2023.10.17
Accounting Research and
Development Foundation
Audit Chief
Executive
Chenyi Li
2023.12.08
Accounting Research and
Development Foundation
2024.01.11
Accounting Research and
Development Foundation
“Training program for the new
Accounting Officer”
The class for the new Accounting Officer
was requested due to the company's
share exchange/transaction being in a
public place.
Practical measures to improve the
“Three Lines of Defense of Internal
Control”
Common internal control management
deficiencies in enterprises and analysis
of practical cases
1
1
3
3
3
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 of 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 13th
Board of Directors in 2018. Compal has successfully completed the succession of its board members and key
management team, which symbolizes the transition to a new generation. The abovementioned top management of
the Company was re-elected as the 14th term of the Board of Directors at the 2021 Annual General Shareholders
Meeting.
72
In response to the future growth, the Company will continue to invest in the talents and promote the key management
team’s experience sharing and inheritance through the arrangement of the regular “Group General Managers
Meetings” and “Executive Management Meetings." This plan and mechanism will enable the Company to achieve its
long-term sustainability goals.
▓ Certificate and qualification acquisition status for personnel involved in financial information
Name of certificate
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®)
Certified Internal Auditor - Taiwan
Certified Internal Auditor
Certified Information Systems Auditor
Information Security Management Lead Auditor
Certified Basic Proficiency for credit officers
No. of persons
5 persons
2 persons
11 persons
4 persons
4 persons
5 persons
1 person
1 person
1 person
3 persons
3 persons
1 person
1 person
1 person
73
3.3.4
Composition, Responsibilities, and Operations of the Remuneration Committee
1. Professional Qualifications and Independence Analysis of Remuneration Committee Members
Conditions
Identity Name
Professional Qualifications and Experience
Independence Criteria
April 2, 2024
Number of Other
Public Companies in
Which the Individual
is Concurrently
Serving as a
Remuneration
Committee Member
Convener
Independent
Director
Wen-Chung
Shen
Independent
Director
Min Chih
Hsuan
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.
Chairman of Faraday Technology Corp.,
Clientron 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.
‧
‧
‧
‧
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%.
74
Independent
Director
Duei Tsai
‧
‧
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%.
3
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.
Part-time professor-level professional and
technical personnel in the Department of
Electrical Engineering, National Taipei
University of Technology and the
Department of Digital Multimedia Design,
Kainan University; Adjunct professor at the
Department of Electronics, National Taiwan
University of Science and Technology and
the Department of Electronics, Yuanzhi
University. Government positions such as
Minister of Transportation and Director of
the Civil Aviation Bureau of the Ministry of
Transportation.
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.
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
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.
75
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 2023(A) and the committee member
qualifications and attendance records are as follows:
Attendance
in Person (B)
4
2
4
Attendance Rate (%)
[B/A]
100%
50%
100%
Wen-Chung Shen
Min-Chih Hsuan
Duei Tsai
Convener
Committee Member
Committee Member
By Proxy
0
2
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 arising from the Remuneration Committee.
Board of
Directors
Meeting
9th Meeting
(14th Term)
2023.3.15
10th Meeting
(14th Term)
2023.5.08
Resolution Adopted by the Remuneration Committee
1. To approve the proposal for the distribution of compensation to employees and
directors for the year 2022
2. To approve the first mid-year employees’ bonus of the year 2023
▲Resolution Adopted by the Remuneration Committee (2023.3.15):
The Board will resolve to approve the proposal after the Committee’s approval.
▲Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1:
Upon solicitation of comments by the Chairman, no objection was 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 conflict of interest,
Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng,
who are also acting as managerial officers of Compal, avoided discussion and voting
on this proposal. Upon solicitation of comments by the chairman, no objection was
addressed and the resolution was adopted unanimously by the remaining Directors
present.
1. To approve the proposal for the appropriated percentage for the remuneration of
employees and Directors of the year 2023
2. To approve employees’ salary adjustment for the year 2023
▲Resolution Adopted by the Remuneration Committee (2023.5.08):
The Board will resolve to approve the proposal after the Committee’s approval.
▲Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1:
Upon solicitation of comments by the Chairman, no objection was 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 conflict of interest, Directors
76
Board of
Directors
Meeting
12th Meeting
(14th Term)
2023.8.11
14th Meeting
(14th Term)
2023.11.10
Resolution Adopted by the Remuneration Committee
Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng, who are
also acting as managerial officers of Compal, avoided discussion and voting on this
proposal. Upon solicitation of comments by the chairman, no objection was
addressed and the resolution was adopted unanimously by the remaining Directors
present.
1. To approve the Directors’ Remuneration for the year 2022
2. To approve 2nd mid-year employees’ bonus for the year 2023
▲Resolution Adopted by the Remuneration Committee (2023.8.11):
The Board will resolve to approve the proposal after the Committee’s approval.
▲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 to discuss and vote 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, no objection was 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, 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 conflict of
interest, Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-
Hua Peng, who are also acting as managerial officers of Compal, avoided discussion
and voting on this proposal. Upon solicitation of comments by the chairman, no
objection was addressed and the resolution was adopted unanimously by the
remaining Directors present.
1. To approve the compensation of Employee bonuses in cash for 2022
2. To approve the proposal for the 2023 year-end employees’ bonus
▲Resolution Adopted by the Remuneration Committee (2023.11.10):
The Board will resolve to approve the proposal after the Committee’s approval.
▲Action taken by the Company in Response to the opinion of the Remuneration
Committee:
・Motion 1 and 2:
In accordance with the Company’s Regulations Governing the Proceedings of Board
of Directors Meetings, an interested party relationship exists between any Directors
and any agenda proposals, such Directors shall excuse themselves during discussion
of and voting on those proposals. Accordingly, to avoid conflict of interest,
Directors Jui-Tsung Chen, Chung-Pin Wong, Ming-Chih Chang and Sheng-Hua Peng,
who are also acting as managerial officers of Compal, avoided discussion and voting
on this proposal. Upon solicitation of comments by the chairman, no objection was
addressed and the resolution was adopted unanimously by the remaining Directors
present.
77
■ 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.
78
3.3.5
Corporate Sustainability Development
Assessment criteria
Actual governance
Yes No
Summary description
Yes
1. Does the Company conduct risk
assessments 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?
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 of 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.
Deviation and causes
of deviation
No deviations were
found
Composition, Responsibilities, and Operations of the Sustainability Committee, Board of Directors'
Supervision of the Sustainability Committee. Please refer to page 98-99.
Yes
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?
For the 2023 Sustainable Development operation and implementation, please refer to page 100-
102, the targets and plans of 2024 Sustainable Development please refer to page 103-104.
The results of implementation are also disclosed in our Annual Report, Sustainability Report, and
on our corporate website/Compal ESG.
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 classify risk issues into "Strategy," "Finance," "Operation," and "Legal
Compliance", "Environment".
2. Risk assessment
Through a risk analysis matrix, the likelihood and impact of risk issues are evaluated
79
No deviations were
found
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
respectively, 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 Covid-19 continues to rage, causing 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 the raw material market.
d.
In response to the impact of 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
80
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
of the supply chain, thereby 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) Human Resource Risk
Due to the Company's international strategic planning and cross-industry diversification,
the demand for international talent continues to increase. However, due to the increasing
competition in the industries to which the Company belongs, the impact of child rearing,
the emergence of technology and the change of regulations and standards, the supply
and demand of talents in the market are imbalanced, which makes it difficult to recruit
talents for strategic planning, professional skills and management, and there is a risk of a
talent gap or technology succession in the medium to long term. The following measures
will be taken:
a. Complete layout of the succession echelon of strategic management professionals
b. Excavation and cultivation of high-potential talents.
c. Continuous implementation of bilingual ability and international vision development
education.
3. Environmental issues.
(1) Has the Company established an
appropriate environmental
management system according
Yes
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
No deviations were
found
81
Assessment criteria
to its industrial characteristics?
Actual governance
Deviation and causes
of deviation
Yes No
Summary description
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.
(2) Is the Company committed to
improving the efficiency of
resource utilization and using
recycled materials with a low
impact on the environment?
Yes
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,
Taiwan, China and Vietnam factories have adopted ISO 14001, ISO14064-1, and ISO 45001, conduct
internal audits 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 2023, no violation of the environmental laws or regulations
has occurred.
Throughout the "product lifecycle," we consider the environmental impacts of raw material
procurement, manufacturing, transportation and distribution, consumer use and disposal, etc., at the
beginning of product design. In addition to focusing on user needs, functionality and added value, the
R&D team is more focused on product development and design from the perspective of “environmental
load minimization” at each stage, covering at least the three core directions of “green materials,"
“energy efficiency," and “ease of dis-assembly/recycling."
Improve production line yield and energy efficiency, develop and use recycled materials stably, design
energy-saving products to reduce energy consumption during reuse, and increase the recoverable
proportion of waste entering the waste phase.
In 2023, 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 36 laptop projects meet the
82
No deviations were
found
Assessment criteria
Yes No
requirements.
Actual governance
Summary description
Deviation and causes
of deviation
(3) Does the Company assess the
Yes
risks and opportunities of climate
change for the enterprise now
and in the future and take
measures to deal with climate-
related issues?
In 2023, the electricity intensity was 350 kWh per million in revenue, which represents a decrease of 3
kWh per million in revenue compared to 2022, but the target of reducing electricity intensity by 1% was
not achieved. Setting 100% RE by 2050, the long-term goal of using renewable energy is to continue to
promote and maintain solar power generation systems, to purchase renewable energy and to invest in
renewable energy funds. PCP, KS3, CDT, CD, CQA, and CQ passed the ISO 50001 energy management
system certification, and continuously optimized 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 had significant
impacts on the world and Taiwan and pose unprecedented challenges to mankind. Apart from
mitigation, we must also begin adaptation operations since climate change is inevitable.
Adaptation applies not only to individuals, but to corporations as well, for it is important for
companies to minimize business risks caused by extreme weather, which will require extensive and
thorough risk assessments in order to turn risks into opportunities.
Continue to follow the TCFD framework to identify risks and opportunities, incorporate strategic
planning and risk management mechanisms, 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
83
No deviations were
found
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
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 2023, procurement included 7,709.8 MWh of photovoltaic power, 75,451.2 MWh of
hydroelectric power, and 75,243 green energy certificates.
Risk 3. Improve the energy efficiency standards of various assets and increase operating costs.
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 6 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 such as carbon reduction have been raging like a storm
around the world, and internationally renowned large companies have issued relevant
carbon reduction commitments. 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
84
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
climate by promoting lean production, controlling energy use, reducing useless waste in
the production process, and creating higher economic benefits as well as environmental
protection
Opportunity 2. Assist suppliers in low-carbon transformation and reduce procurement costs
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.
To accelerate supply chain participation in achieving net zero carbon emissions, we invite
34 key suppliers to join the Compal ONE+N Electronics Industry Supply Chain Net Zero
Acceleration Program. We aim to collectively achieve a substantial reduction of 10,000
tons of carbon emissions over two years to enhance the industry's low-carbon
competitiveness.
External energy-saving and carbon reduction experts will be combined to establish a
Compal industrial low-carbon coaching team. Actively assist manufacturers in formulating
carbon reduction plans and provide carbon footprint monitoring guidance, encourage
manufacturers to invest in the introduction of high-efficiency technologies and processes,
and implement system performance optimization to reduce energy consumption and
carbon emissions.
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.
85
Yes
(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?
No deviations were
Since 2009, Compal has been continuously conducting greenhouse gas inventories, setting Scope 1
and Scope 2 emissions based on the year 2019, for the base year inventory. Stage-wise short and
medium-term reduction targets are established, aiming to reduce carbon emissions by 4.2%
annually compared to the previous year. By 2030, achieving a 50% reduction in carbon emissions is
an intermediate goal, gradually working towards the ultimate goal of achieving RE100 and net zero
emissions by 2050. Scope 3 emissions are set based on the year 2021, aiming to achieve a 25%
reduction target by 2030.
Actively participating in international initiatives, signing the Science Based Targets initiative (SBTi),
and submitting carbon reduction targets in October 2023. Additionally, it is responding to the RE100
initiative by committing to using 63% renewable energy by 2030 and 100% renewable energy by
2050 through energy conservation and procurement of renewable energy.
Waste reduction efforts involve promoting the management practices of UL 2799 Waste Zero
Landfill from the source, communicating with suppliers to use reusable and recyclable raw materials
and packaging materials to reduce waste generation. Achieving a 50% reduction target in waste
generation by 2025 (base year 2019). Although Compal does not have high water consumption in
its manufacturing processes and is not a water-intensive industry, it also pays attention to
watershed resources and strives to achieve water-saving effects.
Scope 1 and 2 greenhouse gas emissions have decreased by 28.0% compared to the previous year
and by 57.8% compared to the base year, achieving the interim reduction target.
GHG emission, the total water consumption, and various types of waste generated in the past two
years are as follows:
Items
Scope 1
greenhouse gas emissions (Ton CO2e)
Scope 2 (Market-based)
greenhouse gas emissions (Ton CO2e)
Scope 1+2 greenhouse gas emissions
Total water consumption
Total general waste (Tons)
Total hazardous industrial waste (Tons)
86
2022
20,437.044
156,320.187
176,757.231
2,499,769.00
8,321.5
1,002.2
Unit: Tons
2023
19,142.734
107,349.886
(Note 2)
127,212.730
2,068,110
6,275
1,422
Assessment criteria
Actual governance
Yes No
Summary description
4. Social issues
(1) Has the Company formulated
Yes
management policies and specific
management plans regarding
social issues in accordance with
relevant laws and regulations and
International Human Rights
Conventions?
Yes
(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?
Note: 1. Relevant figures are currently under continuous verification. For detailed explanations and verified
data, please refer to the Sustainability Report.
2. In this context, only Scope 2 emissions are disclosed based on market standards. For complete
disclosure, please refer to the Sustainability report.
The company is committed to creating a respectful and dignified working environment, which is
considered one of its core values. We strictly adhere to the labor-related laws and regulations of the
operating location, and follow the "International Bill of Human Rights," "United Nations Guiding
Principles on Business and Human Rights," "International Labour Organization Declaration of
Fundamental Principles and Rights at Work," "Organization for Economic Co-operation and
Development Guidelines for Multinational Enterprises," and "The United Nations’ Ten Principles of
United Nations Global Compact” (UNGC)," and take actions consistent with the Responsible Business
Alliance Code of Conduct (RBA) Code of Conduct. We treat all personnel with dignity and respect,
and have established a human rights policy and implemented management practices. In order to
identify, assess, and mitigate the impact of human rights on the company and its supply chain, we
have established a comprehensive human rights due diligence process, assessed risk issues,
developed mitigation measures, and completed investigation reports. Investigations are conducted
at least every three years, with the last investigation conducted in 2022. Human rights policy and
labor-related training courses have been included as mandatory courses for all employees.
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 profit 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
87
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
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 2023, 38.56%
of worldwide Compal employees are women, and 29.63% of female supervisors. The Company is
committed to cultivating local talent in overseas factories. In 2023, the proportion of local
supervisors in China and Brazil was 93.58% and 93.75%.
(3) Does the Company provide
Yes
employees with a safe and healthy
work environment? Are
employees trained regularly on
safety and health issues?
The Company is well aware of how significantly “workplace safety and health” affect a company, its
employees, and stakeholders. This was the reason why the Company 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.
No deviations were
found
The Company organizes health and safety training for employees on a regular basis as a means to
prevent occupational accidents and ensure workplace safety. In addition, we analyze the causes of
occupational accidents and provide suggestions and measures to improve the situation.
In 2023, 1,947 employees had completed their training for a total of 5,211 hours, and the number
of occupational accidents among employees was 179, involving 179 employees (accounting for
0.39% of the total number of employees). The primary category of occupational injuries was
commuting accidents, prompting an enhanced promotion of employee awareness regarding traffic
safety.
In 2023, there were no fire incidents at any factory site, and fire drills were conducted every six
months as required to strengthen employees' emergency response capabilities.
Related Verification Scenarios
All major sites implement ISO 45001 OH&SMS and commit to maintaining sustainable operations
88
Assessment criteria
Actual governance
Yes No
Summary description
for employees’ working environment.
Deviation and causes
of deviation
(4) Has the Company established an
effective career development
training program for its
employees?
Yes
Annual training programs are tailored to suit the needs of different employees, based on the
Company’s business strategies, policy guidelines, and career roadmaps, 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
(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 or customers?
In 2023, a total of 721 training sessions (both internal and external) were organized; these courses
delivered 208,483 hours of training and 115,751 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 Compal's official website.
Compal is committed to protecting customers' information at 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.
No deviations were
found
89
Yes No
Yes
Assessment criteria
(6) Does the Company have a
supplier management policy that
requires suppliers to follow
relevant specifications and
implement them 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
As one of the key members of global computers and peripheral equipment industry and RBA
member, Compal values sustainable supply chain management significantly and ensures to provide
products and services complying with the requirements of ethics, environment and human rights to
customers. We have incorporated international sustainability standard to improve the sustainable
supply chain management efficiency. With regard to the procurement operation, new suppliers are
requested to sign the “Compal Purchase Agreement” before engagement in cooperation and
transactions. According to different product types, we also request suppliers to comply with
relevant international quality and environmental regulations, and the E, S, G performance is also
considered during the supplier selection process. Suppliers are also required to have implemented
international quality and environmental standards such as ISO 9001, ISO 14001, ISO 13485, ISO
17025, IATF 16949 and so on, depending on the product category.
We require suppliers to accept their social responsibility and sign the “Letter of Commitment to the
RBA Code of Conduct” covering the five RBA dimensions of Labor, Health and Safety, Environment,
Ethics, and Management. To keep up with international ESG standards, we have made adjustments
and amendments to the “Compal Supplier Code of Contract” to set higher standards for suppliers
based on the RBA Code of Conduct. At the same time, suppliers must also sign the “Prohibition
Non-support/Non-use of “Conflict Minerals” Statement” to help suppliers understand and commit
to the importance of the ban on conflict minerals.
Compal Supplier Code of Conduct:
http://www.compal.com/CRS/Upload/ArticleImages/2023/
07/19/2023071915520317.pdf
In terms of sustainability risk management, Compal conducts sustainability assessment on suppliers
annually. The assessment is conducted via the “Supplier ESG Risk Assessment Questionnaire” and
the assessment result is able to indicate supplier’s sustainability risk. Subsequently, suppliers of
high sustainability risk are further audited according to the RBA VAP standard. In 2023, a total of 18
suppliers were sampled and audited, and suppliers of poor performance were required to complete
improvement within a time-limit. Annual supplier self-assessments and audits are used to realize
90
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
the goals of promoting social responsibility and improving sustainability performance together.
In 2023, Compal organized the “Common Good Academy” and its purpose was to enhance the
cooperative partnership between Compal and suppliers through information and knowledge
sharing. Compal’s “Common Good Academy” has shared a series of online courses related to
environmental sustainability, social responsibility, corporate governance (ESG) and green energy
and manufacturing technologies, etc. Through the courses and sharing of the Common Good
Academy, Compal’s sustainability goal and actions for carbon reduction and net zero emissions are
conveyed. In addition, we also expect to provide greater professional knowledge and competence
to suppliers at the same time, in order to enhance and improve the overall sustainability action and
competitiveness.
In the future, we will continue to plan and expand courses of the “Common Good Academy”, to
enhance the communication and cooperation with suppliers, and to expand the participation scope
of suppliers and stakeholders, in order to facilitate the experience learning and sharing with each
other, thereby achieving the goal of economic and sustainable development jointly.
As international sustainability topics continue to pick up pace, we invited suppliers to follow our
lead and the Compal philosophy in taking an interest in social topics such as the environment,
labor, health and safety. We are continuing to improve supply chain resilience through the
abovementioned actions.
Yes
5. Does the Company prepare the
Corporate Sustainability and
Social Responsibility Report and
other reports that disclose the
Company's non-financial
information in accordance with
the international reporting
standards or guidelines? Is the
aforesaid report confirmed or
guaranteed by a third-party
verification organization?
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 the 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.
No deviations were
found
91
Assessment criteria
Actual governance
Yes No
Summary description
Deviation and causes
of deviation
The Company was awarded Awards by the Taiwan Institute for Sustainable Energy for its “Taiwan
Corporate Sustainability Report Award” for many years. In 2023, we received the Platinum Award of
this award and the Taiwan Top 100 Sustainable Model Enterprises Award.
92
▓ Climate-Related Information of TWSE/TPEx Listed Company
Item
1. Describe the board of
directors' and
management's oversight
and governance of climate-
related risks and
opportunities.
Implementation Status
In 2022, the Sustainability Committee was established to make decisions
and supervise sustainable development initiatives. Led by the General
Manager and appointed by the Board of Directors, the committee members
were elected among themselves to appoint a Chairperson. The committee is
tasked with implementing corporate social responsibility, establishing good
governance systems, and aligning with international trends to advance
towards sustainable business goals.
2. Describe how the identified
climate risks and
opportunities affect the
business, strategy, and
finances of the business
(short, medium, and long
term).
Simultaneously, the ESG Office was established, led by the Chief
Sustainability Officer, with two Deputy Chief Sustainability Officers assisting.
This office comprises ten functional groups, each setting strategic
objectives, overseeing implementation, and reporting on effectiveness.
Under the Sustainability Committee, a Responsible Manufacturing
Functional Group was established to spearhead green environmental
initiatives, climate change mitigation and adaptation efforts within the
factory premises. It evaluates relevant risks and opportunities and regularly
reports progress and achievements in green initiatives to the sustainability
committee.
Type
Transition
risks
Transition
risks
Transition
risks
Transition
risks
Transition
risks
Transition
risks
Transition
risks
Transition
risks
Transition
risks
Physical
risks
Physical
risks
Physical
risks
Physical
risks
Physical
risks
Physical
risks
Risk Topics
Failure to take initiative on sustainable action may
cause the loss of customers.
Failure to take initiative on sustainable action may
cause the loss of investors.
The increased use of renewable energy required by
the society boosted operating costs.
Operating costs increased from meeting assets with
the latest energy efficiency standards.
Operating costs increased from emerging
technology inclusion in smart processes.
Technology development costs continue to climb
due to renewed product standards.
Declined customer orders due to passive response
to new standard requirements.
Enhancing GHG emissions reporting obligations
Failure to invest in the introduction of emerging
technologies.
Service interruption due to high frequency and
severity of heavy rain and flood.
Costs increased or Company operations are
affected as a result of supply shortage due to
suppliers under the influence of climate change.
Detriment to assets caused by low-lying land
submerged as a result of sea level rise.
Operating costs increased from raised temperature,
which caused equipment to consume more energy.
Time
Short-term
Short-term
Short-term
Mid-term
Mid-term
Short-term
Short-term
Short-term
Mid-term
Mid-term
Mid-term
Long-term
Short-term
Business pressure and impact from water scarcity.
Long-term
Company operations are affected as a result of
supply shortage due to water scarcity.
Mid-term
93
Item
Implementation Status
Opportunity Topis
Inclusion of smart manufacturing process to make productivity
and distribution more efficient, and operating costs lower.
Low carbon products and services to win higher market share.
Recycled aluminum and plastics sourced products in support of
emission reduction and material reuse.
Remain customers' favorite with ongoing sustainable actions.
Remain investors' favorite with ongoing sustainable actions.
Assist suppliers in their low carbon transition to reduce purchase
costs affected by climate change.
Gain more orders with an effective contingency plan that
navigates operations back to normal in a shorter time than others
when disasters occur.
Time
Short-term
Short-term
Mid-term
Short-term
Short-term
Mid-term
Short-term
Participating program in the use of renewable energy.
Short-term
Obtaining incentives from the Public Sector and collaborating
with stakeholders.
Improve energy efficiency in factories
Short-term
Short-term
3. Describe the financial
impact of extreme weather
events and transformative
actions.
Risk event
Introduce alternative recycled raw materials and
increase the cost of R&D technology
transformation.
In response to external requirements, the
increase in renewable energy consumption has
increased operating costs.
Improve the energy efficiency standards of
various assets and increase operating costs.
Scope of impact
Increased indirect
operating costs
Increased indirect
operating costs
Increased indirect
operating costs
Opportunity event
Scope of impact
Take proactive and sustainable actions to
continue to gain customer favor.
Assist suppliers to carry out low-carbon
transformation and reduce procurement costs
affected by changes in climate factors.
Introduce smart manufacturing processes to
improve production and distribution efficiency,
thereby reducing operating costs.
Revenue increase
Improve business
resilience
Reduced operating
costs
94
Item
4. Describe how climate risk
identification, assessment,
and management processes
are integrated into the
overall risk management
system.
5.
6.
7.
8.
If scenario analysis is used
to assess resilience to
climate change risks, the
scenarios, parameters,
assumptions, analysis
factors and major financial
impacts used should be
described.
If there is a transition plan
for managing climate-
related risks, describe the
content of the plan, and the
indicators and targets used
to identify and manage
physical risks and transition
risks.
If internal carbon pricing is
used as a planning tool, the
basis for setting the price
should be stated.
If climate-related targets
have been set, the activities
covered, the scope of
greenhouse gas emissions,
the planning horizon, and
the progress achieved each
year should be specified. If
carbon credits or renewable
energy certificates (RECs)
are used to achieve relevant
targets, the source and
quantity of carbon credits
or RECs to be offset should
be specified.
9. Greenhouse gas inventory
and assurance status and
reduction targets, strategy,
and concrete action plan
(separately fill out points 1-
1 and 1-2 below).
Implementation Status
Using the TCFD framework, we systematically analyze policies and
regulations, technology, market dynamics, corporate reputation, and acute
and chronic climate risks. We evaluate the impacts of these risks and
opportunities on the company, multiplying the values of "likelihood of
occurrence" and "impact severity" to prioritize them. Significant climate
risks/opportunities are confirmed by the board of directors.
Following the TCFD framework, we analyze the risks and opportunities that
the company faces under different climate scenarios, using scenarios such
as the Sustainable Development Scenario (SDS) and Stated Policies Scenario
(STEPS) discussed by the International Energy Agency (IEA), as well as the
Shared Socioeconomic Pathways (SSP1-2.6 and SSP2-4.5) proposed by the
Intergovernmental Panel on Climate Change (IPCC).
To effectively reduce greenhouse gas emissions from "purchased goods and
services" and "product usage," we are implementing the "Compal ONE+N
Electronic Industry Supply Chain Net Zero Acceleration Plan." We have invited
34 key suppliers to join this initiative. Additionally, we are starting to calculate
the carbon emissions generated throughout the product lifecycle. We are
organizing educational training sessions for both suppliers and internal
company staff to encourage investment in the adoption of high-efficiency
technologies and processes. This will ensure system optimization to reduce
energy consumption and carbon emissions.
Our short-term goal is to achieve a substantial reduction of 10,000 tons of
carbon emissions by the years 2023 and 2024, with gradual implementation
towards achieving net zero emissions.
No internal carbon pricing yet.
Compal submitted its Science Based Targets (SBT) in October 2023, setting
boundaries that include both the Compal Group and its consolidated
subsidiaries. The goal is to achieve net zero Scope 1 and 2 emissions by 2050,
with an annual reduction of 4.2% compared to the previous year. Building
upon energy-saving initiatives, there is a proactive acceleration in the
proportion of renewable energy usage,
installation of
photovoltaic power generation systems in factories, purchasing directly from
renewable energy suppliers, investing in green energy funds, and obtaining
renewable energy certificates. In 2023, Compal obtained 75,243 renewable
energy certificates.
including the
Since 2009, Compal has complied with ISO 14064 standards to complete GHG
inventories for Scope 1 and Scope 2 emissions, obtaining certification through
third-party verification. In 2023, the inventory work has been completed,
with plans to obtain certification by June 2024.
95
1-1 Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years
1-1-1 Greenhouse Gas Inventory Information
Item
Greenhouse Gas Inventory
InformationDescribe the emission
volume (metric tons CO2e),
intensity (metric tons CO2e/NT$
million), and data coverage of
greenhouse gases in the most
recent 2 fiscal years.
Implementation Status
The greenhouse gas inventory data covers emissions from the entire
Compal Group, including its consolidated subsidiaries. The 2023 verification
boundary at the time of publication of the annual report includes Compal
and its own factories in Taiwan, China, and Vietnam, and it will be gradually
updated.
Items
Scope 1 (tons CO2e)
Scope 2 (market-based) (tons CO2e)
Total Emissions (tons CO2e)
Emission Intensity (tons CO2e per
million TWD)
2022
20,437.044
156,320.187
176,757.231
2023
19,142.734
107,349.886
127,212.730
0.165
0.134
1-1-2 Greenhouse Gas Assurance Information
Item
Describe the status of assurance for the
most recent 2 fiscal years as of the printing
date of the annual report, including the
scope of assurance, assurance institutions,
assurance standards, and assurance
opinion.
Implementation Status
Since 2009, Compal has been consistently conducting greenhouse
gas inventories and has obtained verification statements through
third-party audits. The verification status for the years 2022 and
2023 is as follows:
˙Verification Scope: Taiwan headquarters, research and
development center, and production bases in Taiwan,
mainland China, and Vietnam.
˙Verification Agency: SGS Taiwan Inspection Technology Co.,
Ltd. Verification
˙Opinion: A verification statement was obtained for the year
2022. The inventory results for the year 2023 are expected to
be verified, and the verification statement is anticipated to be
obtained in June 2024. The complete verification status will be
disclosed in the Sustainability Report.
1-2 Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan
Item
Specify the greenhouse gas reduction
base year and its data, the reduction
targets, strategy and concrete action
plan, and the status of achievement of
the reduction targets.
Implementation Status
■Greenhouse Gas Reduction Targets
• Scope 1 and Scope 2 baseline year is 2019.
Short-term: Reduce carbon emissions by 4.2% compared to the
previous year.
Mid-term: Achieve a 50% reduction
in carbon emissions by 2030.
Long-term: Achieve net zero emissions by 2050.
• Scope 3 baseline year is 2021.
Mid-term: Achieve a 25% reduction in carbon emissions by
2030.
■Achievement of reduction goals
Greenhouse gas emissions from Scope 1 and Scope 2 decreased by
28.0% compared to the previous year and by 57.8% compared to
the baseline year, achieving interim reduction targets.
■Greenhouse gas emissions base year
Scope 1 + 2 data in 2019
96
Boundary includes consolidated subsidiary reports
2019
Scope 1
Scope 2 - market-based
Emissions (tCO2e)
19,361.27
349,671.86
Scope 3 data in 2021
2021
Category 1: Purchased goods and
services
Category 2: Capital goods
Category 3: Fuel- and Energy-Related
Category 4: Upstream transport
Category 5: Waste
Category 6: Business travel
Category 7: Employee commuting
Category 8: Upstream leased assets
Category 9: Downstream transport
Category 10: Processing of sold
products
Category 11: Use of sold products
Category 11a: Use of sold products,
excluding sale of fossil fuels
Category 11b: Sale of fossil fuels
Category 12: End-of-life treatment of
sold products
Category 13: Downstream leased
assets
Category 14: Franchises
Category 15: Investments
Emissions (tCO2e)
28,088,201.07
202,402.55
49,734.85
29,107.44
14,008.31
3,116.87
20,400.00
-
69,565.12
-
15,667,620.00
15,667,620.00
-
142,166.32
-
-
17,797.07
■Greenhouse Gas Reduction Strategy
To achieve the vision of carbon neutrality, Compal is implementing
low-carbon manufacturing, promoting low-carbon product design,
and strengthening the management processes of sustainable supply
chains. Additionally, Compal refers to key ESG performance
indicators to construct corporate carbon management systems.
■Actions and Activities:
1. Promote Low-Carbon Manufacturing:
‧ Implement energy-saving measures in our facilities.
‧ Utilize renewable energy sources and purchase certificates.
‧ Join the RE100 initiative.
2. Promote Low-Carbon Product Design:
‧ Increase the number of products that meet voluntary eco-
label (Ecolabel) requirements and EnergyStar standards.
3. Enhance Sustainable Supply Chain Management Processes:
‧ Implement the 1+N Electronic Supply Chain Net Zero
Acceleration Plan to drive substantial carbon reduction among
suppliers.
‧ Invite suppliers to participate in the CDP Supply Chain
Disclosure initiative by 2024.
97
▓ 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 of the Committee are independent directors, and the Convenor
Chairman 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.
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 transition to a low carbon economy.
1. Professional Qualifications and Experience of Sustainability Committee Members
Identity
Name
Director
Chung-Pin Wong
Independent
Director
Duei Tsai
Independent
Director
Wen-Chung Shen
Professional Qualifications and Experience
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
the computer industry, business operations, performance
evaluation, and 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.
Part-time professor-level professional and technical personnel in
the Department of Electrical Engineering, National Taipei
University of Technology and the Department of Digital
Multimedia Design, Kainan University; Adjunct professor at the
Department of Electronics, National Taiwan University of
Science and Technology and the Department of Electronics,
Yuanzhi University. Government positions such as Minister of
Transportation and Director of the Civil Aviation Bureau of the
Ministry of Transportation.
The individual has professional capability in the communications
network field, and rich knowledge as well as adequate
experience in 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
Company's business.
Department of Electrical Engineering, National Taiwan
University
98
Chairman of Her Tuo Co., Ltd., and Director and Executive Vice
President of Compal
The individual has rich knowledge and adequate experience in
the electronics industry, business operations, and 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.
2. Operations
The term of the 1st committee is from March 15, 2022 to August 26, 2024.
In 2023, the Sustainability Committee held two meetings (A) and the qualifications and attendance of
Committee members are as follows:
Title
Name
Attendance in
Person(B)
By Proxy
Attendance
Rate (%)[B/A]
Remarks
Convenor
Chairman
Committee member
Committee member Wen-Chung Shen
Chung-Pin Wong
Duei Tsai
2
2
2
0
0
0
100
100
100
Topics of discussion in the Sustainability Committee's meeting:
Meeting Date
Topics of Discussion
Resolution and Follow-up
1. To approve the Sustainability Report Material
With the consent of all attending
Topics of 2022
members present, it was passed without
3th Meeting
(1st Term)
2023.3.15
2. To approve the targets and plans of
Sustainability for the year 2023
1. The implementation result of Sustainability
for the 2022.
4th Meeting
(1st Term)
2023.5.08
2. To approve the amendment to the
“Sustainable Development Best Practice
Principles”.
objection, all of which have been
submitted to the Board of Directors for
resolution.
With the consent of all attending
members present, it was passed without
objection, all of which have been
submitted to the Board of Directors for
resolution.
With the consent of all attending
members present, it was passed without
objection and reported to the Board of
Directors.
With the consent of all attending
members present, it was passed without
objection, 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 2023, the Sustainability
Committee held two meetings to report to the Board of Directors. The topics include (1) the sustainability
report material topics of 2022, (2) the targets and plans of sustainability for the year 2023, (3) the
implementation result of sustainability for the 2022, and (4) the amendment to the “Sustainable
Development Best Practice Principles”. 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.
99
▓ The implementation results of 2023 Sustainable Development
Item
Results
Environmental
Sustainability
Responsible
Manufacture
1. Based on SBT (Science Based Targets):
‧
‧ Finalize carbon emission for 2021 and identify significant emission sources as Scope 3
˙Scope 1 and Scope 2 baseline year is 2019 and scope 3 baseline year is 2021.
Cat. 1 & 11 and provide SBTi submission form.
2. In 2023, greenhouse gas emissions in Scope 1 and 2 decreased by 28% compared to the
previous year. (Note)
3. Greenhouse gas inventory of Compal and consolidated subsidiaries (Scope 1 and 2)
counted as 319K tCO2e for 2021.
Note: For detailed explanations and verified data, please refer to the Sustainability Report.
‧ The short-term goal is to reduce electricity, water and waste intensity by 1% per year.
Items
2022
2023
Reduction
percentage
Electricity intensity (KWh/million
revenue)
Water intensity (Tons/million revenue)
Waste intensity (kg/million revenue)
Note: Scope includes operating bases in Taiwan, China, Vietnam, and Brazil.
2.3
8.7
2.2
6.1
350.3
353.0
0.77%
6.21%
29.59%
1. Increase the number of products that comply with the voluntary Ecolabel requirements.
Achievement rate: 69%.
2. All 30 commercial products meet over 5% recycled material usage.
3. Increase project USB PD (Power Delivery) adoption. Achievement rate: 79%.
4. The energy efficiency of all products is better than the latest requirement of Energy Star
8.0.
Innovation
5. Increase introduction of Carton FSC (Forest Stewardship Council) by 36.9%.
6. 100% compliance on worldwide and customer-specified environmental
/EMC(Electromagnetic Compatibility)/RF(Radio frequency)/safety regulations.
Human
Resources
Social
Participation
7. Reduce use of auxiliary materials. Achievement rate: 5.8%.
8. Increase proportion of packaging with reduced plastics by 16.7%.
9. Patent application with ESG-related patents. Achievement rate: 12%.
Total 142 patents and 17 are related to ESG concept.
1. Global turnover rate of IDL (Indirect Labor) employees 10.25 %.
2. Taiwanese IDL (Indirect Labor) key talent: 8.12%.
3. The penalty exceeded NTD 1 million in any sites of Compal: 0.
4. Global occupational incident rate was 0.39%.
5. Health promotion management achievement rate in Taiwan is 95.4%.
1. In 2023, 2,714 employees participated in various public welfare activities of the COMPAL
and HCI Foundation, and donations exceeded NT$ 6.2 million, with a total social welfare
investment of more than NTD$ 20 million.
2. Compal received the "Social Education Contribution Award/Group Award" from the
Ministry of Education, the "Social Service Award" from the Library Association of the
Republic of China, and the "Social Service Award" from the Kaohsiung Board of Education.
In the fourth year, we cooperated with Kaohsiung City Library. In 2023, the first "Compal
Happy Reading" area was set up in the Maitou Branch Library; Compal's "ESG bias" was
recognized by the Kaohsiung Board of Education. Compal's "ESG Reading Program" served
16,960 people in Liugui, Jiacian, Tianliao, and Meituo communities.
100
Item
Results
3. In order to support cultural development and the cultivation of local talents, Compal
sponsored the second Matsu Art Island project. We also cooperated with the W3 Troupe
for the public good. The "Flourishing Star Project" offered two performances to provide
schoolchildren in remote areas with the opportunity to see physical theater
performances. This is a fun and educational program that builds personal risk response
skills in the face of climate change.
4. The third year of the "Mooncake Donation Project": 868 colleagues donated Mid-Autumn
Mooncake sets to 3,448 disadvantaged students in New Taipei, Taoyuan, Taichung,
Miaoli, Changhua, Pingtung, Hualien, Hsinchu, and Kaohsiung. We continue to cooperate
with social enterprises and social welfare organizations to care for disadvantaged
children.
5. Compal held the fourth "Healthy Charity" series activities. A total of 60 colleagues
attended Compal’s 10K team for the Neihu Charity Running Activity. Purchasing products
from social enterprises to encourage 87 employees to participate in health promotion
activities and meeting the health standards.
6. Compal co-organized the third “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 build a beautiful, good and healthy society.
7. Sponsored the "Kangaroo Project" from the Rural Center of Fu Jen University for the 5th
year, for the after-school tutoring center and community teacher training program at
New Taipei, Taoyuan, Taichung and Miaoli Schools.
8. Promoted SDGs4 (Sustainable Development Goals) Goal.4 Quality Education of UN, held
in the "Compal Reading Volunteer Project" to promote reading education in rural villages
for the 16th year, to serve 2,984 school children and residents. In 2023, a total of 235
smart wireless lamps were sent to children of disadvantaged families in New Taipei,
Pingtung, Taoyuan and Kaohsiung areas so that their learning was not limited by the
environment and they were able to study.
9. We regularly hold volunteer service activities. In 2023, we had 15 volunteer service
activities with 315 participants. We also held blood donation activities. (330 employees
donated 503 units of blood, a total of 125,750cc).
1. ESG Performance: Sustainalytics ESG risk, ISS ESG rating, and S&P ESG scores were
improved YoY ; The 9th TWSE corporate governance evaluation kept at the 21~35%
range.
2. Corporate Governance Enhancement:
Corporate
Governance
(1) The board has passed the amendment of the “Corporate Governance Best-Practice
Principles”, adding the policy for board diversification.
(2) Appointed an external professional independent org. to conduct the board
performance evaluation.
3. The major penalty event by government: 0.
4. The major violation event or anti-corruption by employees in any country: 0
Risk
Management
1. Risk Management Committee has been established and started operation this year in
accordance with statutory requirements.
2. Sharing at the Group's exchange meetings in risk management.
3. Enhanced Risk Management System: Increase Risk Appetite in System Risk Management
Questionnaire for evaluation by each site.
4. Promoting Digital Management: Enhance electronic management and expand the usage
of the two systems.
101
Item
Results
Customer
Relationship
Information
Security
Supply Chain
Management
5. Enhancement of professional skills: Departmental staff have obtained 13 types of
international licenses. Weekly professional exchange training.
Customer satisfaction rating was 89.1% in 2023.
1. Information Security Committee holds management review meetings to ensure the
continued applicability, appropriateness and effectiveness of ISMS (Information Security
Management System) in 2023.
2. Privacy and Information security: Availability of critical systems: 99.91%.
1. Finalize the content of sustainable supply chain for the Compal website ; ESG-Go online
(Total 3 course).
2. Defined key suppliers and provided support to complete 12 suppliers' on-site audits at
the end of December.
3. Support suppliers to apply carbon reduction program: Invited suppliers to attend IDA (The
Industrial Development Administration) net zero project and assist to execute 9 suppliers
factory visit plan.
4. Investigate 838 suppliers’ smelter list at end of Nov. and complement conflict mineral
management process.
5. All projects comply with latest regulations and customer specifications.
6. Increase the number of halogen-free parts and production process projects to 75%.
7. Increase the number of Full Material Disclosure (FMD) projects to 55%.
8. Increase the proportion of hazardous substance e-reports to 44%. Target to reach 60%
goal, by adding digitalization of CTI (Centre Testing International Group Co., Ltd.) (2nd test
lab.)
102
▓ The targets and plans of 2024 Sustainable Development
NO.
1
Targets
Focus on responsible
manufacturing and the
innovative design of low
carbon in green
products to reach the
goals of circular
economy and net zero
emissions.
2
Implementing DEI policy
and workplace gender
equality, strengthening
talent development and
retention to create a
positive work
environment and an
employee-friendly
workplace.
Plans
1. Renewable electricity utilization 44%.
2. Scope 1+2 Carbon Emissions Reduction ratio 21% vs 2019 (base year).
3. Certified Items in Scope 3.
4. Become a member of RE100 (Renewable Energy) and make a commitment
to use renewable energy.
5. Commit to net-zero by signing the SBTi (Science Based Targets initiative)
Commitment Letter.
6. The IDA (Industrial Development Administration) ONE+N Net Zero
Program.
7. Water-saving device & equipment.
8. Add ESS (Energy Storage System) energy storage project, continue applying
digital energy management system and build a renewable energy system.
9. Waste classification, and increase resource recovery.
10. Recycling and reuse rate of plastic roll/packaging is increased by 15%.
11. Adoption of the product carbon footprint management system and going
live in 2024/Q4.
12. Ready for PCF/EPD inventory and complete at least one environmental
product declarations.
*PCF = Product Carbon Footprint
*EPD = Environmental Product Declaration
13. Product energy efficiency performance exceeds the energy consumption
regulation or the previous generation by 15%.
14. Adopt recycled plastic material with a recycling rate >30% in green
products.
15. 100% compliance with worldwide and customer-specified environmental/
EMC (Electromagnetic Compatibility)/RF(Radio frequency)/safety
regulations.
16. More than 5% of all patent applications with ESG-related patents.
17. Develop low-carbon products or investment tax credit projects with more
than 5 cases.
18. Cost reduction generated by the process innovation is increased by 50%
compared to 2023.
19. Complete the substantial carbon emission reduction of 2,000 metric tons
at the product level.
20. 100% compliance with hazardous substance regulations for products and
customer specifications.
21. Increase the number of halogen-free parts and production process
projects to 80%.
22. Increase the number of full material disclosure projects to 60%.
1. Retention rate of key positions: 90%.
2. The average training hours per manager is 16 hours.
3. By 2025, global proportion of female employees: 40%, female
management: 32%.
4. Global employee satisfaction survey coverage rate reaches 60%.
5. By 2030, social investment amount will be increased by 10% compared to
the year 2020.
103
NO.
3
Targets
Continuously
strengthening corporate
governance quality and
risk management.
Enhance the sustainable
supply chain to improve
sustainability evaluation
and performance in the
long run.
Plans
1. To improve company’s ESG rating and aim for the Top 20% ranking in the
TWSE CG Evaluation.
2. The major penalty event by the government: 0
3. Violation against honest operation or anti-corruption by employees in any
country: 0
4. Information Disclosure Implementation of the financial calculation of
climate change.
(1) Climate risk factors → Impact and impact on Compal
→ Quantitative analysis of financial impact.
(2) Communicate with the factory and prepare to fill in the impact and
financial impact that major risks may have on the factory.
(3) Communicate with each function: relevant calculation formulas and
data integration.
5. Strengthen the understanding and management of new types of risks and
improve DJSI’s score in risk management assessment. Risks to consider in
2024:
(1) Energy transition risks – Taiwan’s green energy is insufficient and it
will be difficult to resolve difficulties in the short term.
(2) Demographic changes lead to a low birth rate – talent recruitment
and attracting talents may be problematic.
6. Customer satisfaction rating> 90% or top 2 in customer QBR (Quarterly
Business Review).
7. Comply with the information security requirements of the government and
Compal. Conduct information security management review meetings
regularly.
8. Meet the expectations and requirements of internal customers.
Continuously introduce incident identification, protection, detection,
response, and recovery control mechanisms.
9. Suppliers
(1) Combined sustainable supply chain management process.
(2) Assist customers to execute supplier ESG due diligence.
(3) Combine SASB (Sustainability Accounting Standards Board) & SAQ
(Self-Assessment Questionnaire) questionnaires, and analyze
supplier region-specific risk.
(4) Annual audit results will be disclosed in the ESG report.
(5) Setup Compal's Supplier E-training website.
(6) Guide suppliers to execute Carbon footprint assessment.
(7) Disclosure suppliers’ smelter list.
(8) Announce conflict mineral report on the Compal website.
104
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 is
confirmed by 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
wastewater 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 Science Based carbon Target, Compal has committed to 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 2023, Compal received an overall CDP Management score of B.
■ Energy management system
In view of the most fundamental way to save energy, reduce greenhouse gas emissions, and improve energy
productivity, after detailed evaluation, gradual practice, and continuous maintenance, in 2023, there were
Taoyuan (PCP), Kunshan (KS3 and CDT), Chengdu (CD) and Chongqing (CQ and CQA), a total of 6 factories have
obtained ISO 50001 energy management system certification, and relevant experience has been extended to
other factories.
■ 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
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commit to active care for the local environment.
The Company requires all its suppliers to be certified for ISO 9001 (quality management system) and ISO 14001
(environmental management system), and follow EICC guidelines by signing a Letter of Commitment to the
RBA Code of Conduct. Under this commitment, upstream suppliers are bound to comply with international,
national, and local regulations with respect to all their activities.
In order to invite the supply chain to participate in net-zero carbon reduction, 34 key suppliers will be invited
to join Compal’s ONE+N electronics industry supply chain net-zero acceleration plan in 2023, and external
energy-saving and carbon reduction experts will be combined to establish a Compal industrial low-carbon
coaching team. Actively assist manufacturers in formulating carbon reduction plans and provide carbon
footprint monitoring guidance, encourage manufacturers to invest in the introduction of high-efficiency
technologies and processes, and implement system performance optimization to reduce energy consumption
and carbon emissions.
It is expected to jointly achieve the goal of substantive carbon reduction of 10,000 tons within two years to
improve the industry's low-carbon competitive resilience.
■ 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 work, 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.
A human rights policy has been established, as well as a process for conducting due diligence on human rights.
Regular reviews and improvements are conducted to ensure the implementation of human rights protection
work is more comprehensive.
The above relevant regulations are disclosed on the official website: “Compal ESG- Inclusive Growth- Human
Rights Protection and Health Care” and Sustainability reports.
■ Policies for workplace diversity and promotion of gender equity are established, and relevant
implementation status is reviewed.
˙Compal is committed to promoting gender equality and DEI culture. In addition to ensuring that colleagues
are treated differently regardless of gender or sexual orientation, Compal is also committed to creating a
working environment that respects human rights and is dignified. The headquarters and each factory have
formulated management procedure documents for the "Non-Discrimination and Anti-Harassment Policy" and
" Human Rights Policy ".
Compal Non-Discrimination and Anti-Harassment Policy:
https://www.compal.com/CSR/Upload/ArticleImages/2023/07/07/2023070715045475.pdf
Compal's Human Rights Policy:
https://www.compal.com/CSR/Upload/ArticleImages/2023/07/07/2023070715042022.pdf
˙With the promotion of equality in the workplace and the promotion of DEI culture, the proportion of male
employees and female employees at Compal in 2023 are 61.44% and 38.56%. Compared to last year, the
proportion of females has increased by 0.43%.
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˙Compal is committed to creating a diversified workplace, cultivating global talents, and strengthening the
human capital of each factory location. The proportion of local supervisors in our factories in China, Brazil and
the United States is as high as 93.58%, 93.75% and 85.71%. In the Vietnam factory, the proportion of local
supervisors has also increased by 1.03% compared to 2022.
■ Risks and opportunities on the community are assessed and corresponding measures are adopted. In
addition, specific measures and implementation outcome are reviewed.
Compal has long been concerned about the lives of disadvantaged groups and residents in rural communities,
so that they can live a healthy life free from hunger; it promotes digital learning and quality education to
improve the educational gap between urban and rural areas, narrow inequality, and eliminate poverty. Compal's
headquarters is in Taipei Neihu Science Park. It sponsors and forms the Compal 10K team every year to respond
to the Neihu Science Park Charity Road Run, gather the development power of the internal medicine
community, promote health promotion and help social groups promote public welfare services.
Compal has a R&D center in Kaohsiung. It has cooperated with the Kaohsiung Municipal Library on the "ESG
Rural Reading Charity Cooperation Project" for four consecutive years in 2023, and has sponsored TWD500,000
to help Kaohsiung Panxiang District Library provide community residents with diverse reading learning methods
and serve community students and residents according to age. In 2023, the "Compal Xiyue.com" section will be
set up for the first time in the Amituo branch, and will also assist the Liugui, Jiaxian and Tianliao branches to
include: mobile libraries, story theater groups, on-site reading, and AR environmental education games. Use
different learning methods to assist students in various communities in their academic learning and build
awareness of the initiative to sustainably protect the community environment and the community's cultural
heritage. In 2023, Compal's "ESG Rural Reading Charity" served 16,960 people in Liugui, Jiaxian, Tianliao and
Mituo areas.
Compal has set up a factory in Taoyuan for many years, and emphasizes local development and talent
cultivation. Compal has long been concerned about the weaknesses of remote villages and the Taoyuan area.
Compal's Taipei headquarters in Neihu District also sponsors TWD 200,000 annually to respond to the Neihu
Science Park Charity Road Race, to consolidate the development power of the Neihu community, to promote
health promotion and to help social organizations to promote public welfare services.
Compal has long-term cooperation with public welfare groups and employs disadvantaged groups in need.
Since 2019, we have cooperated with Duobao Academy to hire Duobao artistic youths in Taipei. In 2023, we
hired five Duobao artistic youths with Asperger syndrome from Duobao Academy to help them learn and
encourage them to develop their talents and gradually make a living on their own.
■ Local manpower at the place where the Company’s business operation is located is hired, and the manpower
ratio is reviewed.
In 2023, the number of employees whose registered address in Taipei was 4,624, accounting for 71.71% of the
total employees in Taipei operating area; the number of employees whose registered address in Taoyuan was
1,392, accounting for 88.95% of the total employees in Taoyuan operating area; the number of employees
whose registered address Kaohsiung was 28, accounting for 77.78% of the total employees in Kaohsiung
operating area.
Compal has established multiple manufacturing bases worldwide as production hubs, and the proportion of
local employees was over 90% in 2023. In addition to creating local employment opportunities, the influx of
migrant workers brings consumption to the local area, promoting local economic development.
■ 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",
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starting from source reduction, starting from caring for rivers, organizing ecological tours of the Tamsui River
Basin, inviting company employees, Supply chain partners and cooperating social welfare groups participated
in environmental education and beach cleanup activities, a total of 2 sessions. 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. 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,
and Kanner Village Social Enterprise to join the Compal Social &Green Market Event. We encourage employees
to know more about social enterprises and give them more support through the event.
In 2023, Compal collaborated with the Society of Wilderness, 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 with a nice place for leisure and recreation
activities.
‧ Compal co-organized the third “Taipei Science and Technology Cup Love Earth Charity Road Run” in Taipei Neihu
Technology Park.
‧ Compal has teamed up with the "Kangaroo Project" from the Center of Care Services for Rural Area Education
of Fu Jen Catholic University for the 5th year, and for the after-school tutoring center and community teacher
training program at New Taipei, Taoyuan, Taichung and Miaoli.
‧ Compal Neihu employees support the “2023 Blood donation activity”: 330 people participated in and donated
503 bags of blood, totaling 125,750 cc.
■ Social services
‧ Compal's employees have run the “Compal Volunteer Club” since 2004. Members of this club visit
disadvantaged children on the weekends and guide them in reading 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 Dingshe
Elementary School, Shoushan Elementary School, Jong Jen Elementary School, Wuhan Elementary School, Nan-
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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 2023, the volunteers had assisted 7,969 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.
‧ To promote sustainable environmental action, Compal cooperated with the Wilderness Society, and 197
Compal volunteers carried out the "Pterospermum fern restoration operation" to protect native wetland
species on Shezi Island in 2023.
■ Social welfare
(1) Budget sponsorship
‧ Compal sponsored the "Second Matsu International Art Island" large-scale art curation event with TWD 1
million to promote local culture and economy, and support the cultural and artistic development and
international art exchanges in Taiwan's outlying island of Matsu.
‧
‧ For the 4th year, Compal sponsored & cooperated with Kaohsiung City Library. The first "Compal Happy
Reading" area was set up in the Maitou Branch Library; Compal's "ESG Reading Program" served 16,960
people in Liugui, Jiacian, Tianliao, and Meituo communities.
Initiated by the Hsu Chauing Social Welfare & Charity Foundation, the Dream Realization Project”, joined by
colleagues from Compal and New Kinpo Group, has already been for 12 consecutive years. In 2023, 268
Compal colleagues took part in activities to help disadvantaged children continue their studies and develop
their natural talents.
‧ 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 2023, 11 college clubs applied for sponsorship, 216 student volunteers participated
in sponsored volunteer activities, for which the company contributed a sum of TWD 600,000 that benefited
2,984 school children and community residents.
‧ For the second year, Compal sponsored the “ Care and Health Day activities” of Fuzhou University Hospital
to take care of vulnerable residents in the community and encourage community elders to develop the habit
of regular health check-ups.
‧ Sponsoring of budgets for the Compal Sunshine Scholarship
The "Compal x Sunshine Scholarships" has entered its 25th year, which provides "Outstanding Computer
Talent Scholarships" and "Computer Excellence Scholarships" for students with burns and facial
impairments yet with excellent computer skills.
In addition to charity involvement, the Company also provides strong support to academic and industrial
organizations including: Taipei City Friends of the Police Association Neihu Office, Taoyuan City Volunteer
‧
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Fire Brigade Pingzhen Squad, Taiwan District of Kiwanis International, Taiwan Institute for Sustainable
Energy, National Taiwan University System Cultural Foundation, Former Dancer Culture and Arts
Foundation, Taiwan Semiconductor Circuit Design Association, Spinal Cord Injury Social Welfare Foundation,
Golf Gap of Learning & Field, Taiwan Society of Minimally Invasive Interventional Biotechnology. A sum of
TWD 4,076,000 was donated to the above mentioned entities in 2023.
(2) Donation of supplies
‧
In 2023, a total of 235 smart wireless lamps were sent to children of disadvantaged families in New Taipei,
Pingtung, Taoyuan and Kaohsiung, so that their learning was not limited by the environment.
In-Kind Donations for A Heartwarming New Year: 126 employees donated 1,039 items of living materials to
help 200 poor families in the Sanchong District.
‧
‧
‧ Sharing Care with Mooncake Charity Activity: 868 colleagues donated Mid-autumn moon cake sets to 3,448
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 its fifth year. In 2023, 68
Compal colleagues took part in activities to help disadvantaged children from 3 to 13 years old and prepare
exclusive gifts for Children's Day.
(3) COMPAL’s Christmas Big Brothers and Santa sisters deliver blessings to Yongfu Elementary School.
COMPAL Volunteers visited the Taoyuan City Luzhu Dist. Yongfu Elementary School with the Hsu Chauing
Social Welfare Charity Foundation to share the festive atmosphere with teachers and students, and
distributed Christmas gifts to 76 students to express their blessings.
■ Resources are invested to support domestic cultural development, and the support method and outcome
are reviewed.
Compal sponsors the "Second Matsu International Art Island" large-scale art curation event with TWD 1
million. In addition to promoting the cultural development of rural areas, it supports the cultural and artistic
development of Matsu, an outlying island in Taiwan. It also invites international artists to participate in
exhibitions and exchanges, and encourages the innovative development of local artistic talents. , and artists
are stationed on campus to share creative techniques and techniques with students, rooting out art
education in rural areas, and opening up new creative horizons for local youth. It also shares the
characteristics of Matsu’s outlying islands and local delicacies made with local materials internationally, and
invites people from all over the world to come to Matsu for island hopping and experience the cultural charm
of Matsu’s four towns and five islands. There are 70 works on display this time. Artists from seven countries
were invited to participate in the creation, bringing 70 works, 10 of which will become permanent works and
be preserved on Matsu Island. Compal also sponsors the Original Dancers Culture and Art Foundation and
Duobao Academy, allowing talented artists to develop their talents and promote the development of art and
culture. The Number of Beneficiaries exceeds 20 thousand every year.
Compal is committed to improving the learning quality and sustainable environmental education of students
in rural areas. From 2016 to 2019, it sponsored the large-scale children's drama "Recovering Lost Courage" for
charity performances across Taiwan, inviting more than 9,000 disadvantaged school children and it was
viewed by poor families. After the epidemic was lifted in 2023, we will cooperate with Taiwan's Shuiyuan
Village Theater Company on the charity "Guardian of the Stars Project" and sponsor Taiwan's Shuiyuan Village
Theater Company to perform the children's play "Pandora's Hope" to encourage children to maintain their
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confidence and ability to face the life risks of global climate change. Let school children in remote
communities have the opportunity to watch theater performances in person.
There will be two live performances in 2023. One will invite 117 students from Luzhu Elementary School in
Taoyuan to Compal to watch, and the other will be performed at Touzhou Elementary School in Taoyuan for
more than 300 students from the whole school. In 2024, Compal will continue to promote the "Guardian
Stars Project" to increase the exposure of schoolchildren in rural communities to cultural and artistic
performances.
In January 2023, Compal will resume its annual year-end party, during which Taiwan's world-class professional
performing arts group "Diabolo Dance Theatre" will be invited to perform as the opening performance, as
well as the local orchestra "Mayday", the golden song Taiwanese singer – Henry Hsu, and the new generation
of singers Julia Wu and Boon Hui Lu will come to sing. In order to continue to support traditional folk skills
and pop music culture, the performance cost exceeded NTD15,000,000, and the number of participants was
nearly 9,000.
Compal regularly holds a series of Art activities from October to December every year. The first event of the
2023 "Autumn with Art" series is based on the curatorial theme of paper-cutting artist Wuba Yang and
Compal's promotion of the protection of Taiwan's native species, "Acrostichum aureum". A paper art
exhibition was exhibited at the Taipei headquarters as a prelude to the event. The exhibition is presented in
three forms: a large hanging paper curtain, a large paper fern installation and a paper fern frame painting,
bringing pieces of stretched green leaves into the urban jungle, so that colleagues who are in the quagmire of
science and technology every day can not only witness the innovative power of traditional paper-cutting art,
but also feel the beauty of Taiwan when they turn around.
Series 2 is a crosstalk performance - "Taiwan Manzai Comedy Show". Invite the new generation of comedy
troupe "Comedy Times" to perform a three-person short play & two-person Manzai, bringing improvisational
comedy performances.
In the third series, colleagues and their families are invited to enjoy and listen to the solo recital and lecture
of violinist Hu Nai-Yuan at the Taiwan Connection Music Salon. Through in-depth interaction, it is easy to
decipher classical music and integrate classical music art into life.
■
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
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to environmental protection, safety and health, and work together towards accomplishing our goals.
(1) Environment safety and health policy:
‧ Comply with environmental, safety and health laws, and related requirements.
‧ Conduct environment safety and health training to raise employees' awareness towards individual
responsibilities as well as safety and health concerns of the surrounding environment, while at the same time
encouraging their participation in relevant causes.
‧ Continually improve environmental, safety and health performance through programs such as pollution
prevention, accident prevention, energy/resource conservation, waste reduction, and responsible care.
‧ Pay attention to the control of pollution sources and reducing waste from production. Enhance safety and
health facilities to prevent pollution and minimize risks.
‧ Establish proper communication channels to convey the Company's environmental safety policy, requirements,
and goals to employees, suppliers, contractors, nearby residents and concerned organizations.
(2) Environmental safety and health systems/measures:
In an attempt to minimize losses on occupational hazards and rectify hidden dangers and recurring safety
incidents for more harmonic
labor-management relations, the Company subsequently assembled an
Environment Safety Promotion Committee that specializes in the development of environment safety plans. Any
environment safety-related policies and goals proposed are subject to review during the Environmental Safety
Management Review Meeting. Once reviewed, the Committee becomes responsible for supervising work safety
units in the implementation of safety and health-related measures, auto inspections, maintenance, and training
to eliminate hazardous factors in the environment. In addition, the Committee also supervises relevant
departments in 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 the 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
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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 issued a statement of compliance with the integrity
management policies, committing to actively implementing 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” were adopted to govern the
following 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
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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 report
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 online teaching courses on the e-Learning platform, including legal affairs related training
on information security, the 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
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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 2023:
The Company requires suppliers to follow the RBA Code of Conduct, sign the RBA Code of Conduct
commitment or complete the RBA Code of Conduct questionnaire. Among 937 suppliers with
transaction records, 924 have signed the RBA Code of Conduct commitment or completed the RBA
Code of Conduct questionnaire, making for a signing rate of 99%. In addition, 8,840 employees
completed 9,567 hours of integrity management related training, including:
Courses
New Employee Orientation
On-job Training for New Employees
New Employee Orientation
Compal CSR Training
Attendances
442
521
245
7,631
Hours
804
2,866
1,470
4,426
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 are 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
commercial activities other than those of this Company.
The Company’s Personnel Management Rules and “Employee’s Statement of Ethics and
116
No deviations were
found
Assessment criteria
Yes No
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
incentives and means for
employees to report
Yes
Actual governance
Summary description
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 of 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.
Deviation and causes
of deviation
No deviations were
found
The Company organizes training courses in accordance with “Regulations Governing the
Establishment of Internal Control Systems by Public Companies” and the board-approved “Insider
Trading Prevention Principles." Insider training prevention courses are organized for vice president-
grade employees and above, while general employees take training on ethical behavior on a yearly
basis.
No deviations were
found
The Company has mailboxes in place to receive malpractice reports from within or outside the
Company. Once a report has been sent to the mailbox, it will be referred to the appropriate
department and personnel, depending on the nature of the underlying issue to handle or conduct
No deviations were
found
117
Assessment criteria
malpractice? Does the
Company assign dedicated
personnel to investigate the
reported malpractice?
Yes No
related checks.
Actual governance
Summary description
Deviation and causes
of deviation
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
1. Has the Company disclosed
its integrity principles and
progress on its website and
MOPS?
Yes
Yes
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 confidentially.
No deviations were
found
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
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 “Compal ESG- 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 on 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 of 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."
118
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
‧ Tax Policy and Management Guidlines
119
3.3.8 Other Important Information Regarding Corporate Governance
Please refer to the Company’s website→Compal ESG
https://www.compal.com/csr/zh/default.aspx
‧ Sustainable Management
‧ Stakeholders
‧ Supply Chain Management
‧ Environment
‧ Inclusive Growth
‧ 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
120
3.3.9
Internal Control Systems
1. Statement of the Internal Control System
Compal Electronics, Inc.
Statement of the Internal Control System
Date: March 12, 2024
The Company states the following with regard to its internal control system during the fiscal year 2023,
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, 2023 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
12, 2024, where 0 of the 15 attending Directors expressed dissenting opinions, and the remainder
all affirmed the content of this Statement.
Compal Electronics, Inc.
Chairman: Sheng-Hsiung Hsu (Rock Hsu)
President: Chung-Pin Wong (Martin Wong)
121
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’ and Board Meetings
1.
Shareholders’ meeting
■ Time: 9: 00 am, June 21, 2023
■ Place: No. 581, Ruiguang Rd., Neihu District, Taipei City 11492, Taiwan
■ Major Resolutions:
(1) Ratified the Business Report and Financial Statements for 2022.
(2) Ratified the Distribution of Earnings for 2022.
(3) Approved the release of non-competition restrictions for Directors
■ Post-meeting Execution: N/A
2. Major Resolutions of Board Meetings
Date
8th Meeting
(14th Term)
2023.02.07
Material resolutions
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
9th Meeting
(14th Term)
2023.03.15
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 evaluation of CPAs’ independence and competence in performing financial
122
report audits.
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 for the year 2023
13. Approved the proposal for the appropriated percentage for the remuneration of
employees and Directors of the year 2023
14. Approved obtaining newly issued shares of ARCE Therapeutics, Inc. by participating in
the capital injection by cash.
15. Approved the proposal for providing a Corporate Guaranty Letter to Quanta Computer
Inc.
16. Approved the issuance of a 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
1. Approved to obtain newly issued shares of AcBel Polytech Inc. by participating in the
capital injection by cash.
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 authorization for the Company to obtain credit facilities from financial
institutions
1. Approved the Directors’ Remuneration for the year 2022
2. Approved 2nd mid-year employees’ bonus for the year 2023
3. Approved the 1H 2023 Consolidated Financial Review Report
4. Approved the enactment of the “Tax Policy and Management Guidelines”
5. Approved for a loan to Henghao Technology Co. Ltd.
6. Approved for a loan to Unicom Global, Inc.
7. Approved the issuance of a Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
8. Approved authorization for the Company to obtain credit facilities from financial
institutions
1. Approved to obtain newly issued shares of Cal-Comp Electronics (Thailand) Public
Company Limited. by participating in the capital injection by cash.
1. Approved for approval of annual audit plan for year 2024
2. Approved the amendment to the“Corporate Governance Best-Practice Principles”
3. Approved the compensation of Employees’ bonuses in cash for 2022
4. Approved the proposal for 2023 year-end employees’ bonus
5. Approved the 3Q 2023 Consolidated Financial Report
6. Approved the amendment to the “Rules for Performance Evaluation of the Board of
Directors and Functional Committees”
7. Approved to obtain newly issued shares of Kinpo&Compal Group Assets Development
Corporation. by participating in the capital injection by cash.
123
10th Meeting
(14th Term)
2023.05.08
11th Meeting
(14th Term)
2023.07.18
12th Meeting
(14th Term)
2023.08.11
13th Meeting
(14th Term)
2023.09.07
14th Meeting
(14th Term)
2023.11.10
8. Approved fund loan to 100% owned subsidiary COMPAL EUROPE (POLAND) Sp. z o.o
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 authorize the Company to obtain credit facilities from financial institutions
1. Approved for senior level management change
2. Approved the proposal of the distribution of compensation to employees and directors for
the year 2023
3. Approved the Audited Consolidated Financial Report and Parent Company Only Financial
Report for the year 2023
4. Approved the proposal for Distribution of Earnings for the year 2023
5. Approved the proposal for cash dividends from Earnings for the year 2023
6 Approved the proposal of cash distribution from Capital Surplus
7. Approved the relevant matters regarding the distribution of the year 2023 cash dividends
and cash distribution from capital surplus to shareholders
8. Approved fund loan to 100% owned subsidiary Compal Smart Device India Private Limited
9. Approved fund loan to 100% owned subsidiary Compalead Eletrônica do Brasil Indústria e
Comércio Ltda.
10. Approved providing providing a Corporate Guarantee Letter for Compal Tecnologia Do
Brasil Ltda., a 100% owned -subsidiary of the Company, to Quanta Computer Inc., to be
resolved.
11. Approved providing providing a Corporate Guarantee Letter for Compalead Eletrônica do
Brasil Indústria e Comércio Ltda., a 100% owned -subsidiary of the Company, to Quanta
Computer Inc., to be resolved.
12. Approved the issuance of Letter of Support by the Company to facilitate its subsidiary in
obtaining credit facilities from financial institutions
13. Approved authorize the Company to obtain credit facilities from financial institutions
1. Approved the Internal Control System Statement for the year 2023
2. Approved the Risk Management Targets for the year 2024
3. Approved for senior level management change
4. Approved the Business Report for the year 2023
5. Approved the Business Plan for the year 2024
6. Approved the proposal on election of the 15th term of Directors
7. Approved the convention of 2024 Annual General Shareholders’ Meeting
8. Approved the Sustainability Report Material Topics for the year 2023.
9. Approved the targets and plans of Sustainability for the year 2024
10. Approved the investment in CGS Technology (Poland) sp. z o.o. (a Polish subsidiary) by
participating in the capital injection by cash.
11. Approved fund loan to 100% owned subsidiary Compal Tecnologia Do Brasil Ltda.
12. Approved the first mid-year employees’ bonus of the year 2024
15th Meeting
(14th Term)
2024.02.29
16th Meeting
(14th Term)
2024.0312
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:
April 2, 2024
Title
Name
Date of appointment
Date of dismissal
Reasons for dismissal
Internal Audit Officer
Chenyi Li
2021.8.27
2024.3.12
Internal position adjustment
124
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
2023.01.01~
2023.12.31
9,500
3,838
13,338
Note
Note: Other non-audit fees: Tax consultation, transfer pricing report, business registration and others.
(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: Not Applicable.
125
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
commission
applicable
Will no longer accept/continue
Not
the commission
applicable
Commissioner
Not applicable
Not 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 reports
prior to commissioning
Written opinion from succeeding CPA
on items of disagreement with the
former CPA
N.A.
N.A.
126
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
Sheng-Hsiung Hsu
Vice-Chairman
And CSO
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
2023
Up till April 2, 2024
Shares held
Increase
(Decrease)
Shares pledged
Increase
(Decrease)
Shares held
Increase
(Decrease)
Shares pledged
Increase (Decrease)
Unit: shares
0
0
0
0
0
0
0
(650,000)
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
127
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
2023
Up till April 2, 2024
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
(100,000)
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 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 Chuan-Fan Tu
Guo-Dung Yu
FO & VP
Vice-President Peng Kuee Lau
Vice-President Wu-Ching Chi
Vice-President Hsin-Chung Chen
Vice-President
Jue-Teng Chang
Vice-President Choo-Tain Chiu
Vice-President Wei-Chia Wang
Hui Chun Yu
IAO
Vice-President
Jen-Liang Lin
Vice-President Hou-Chun Liu
Vice-President Chang-Chieh Tien
Vice-President Fu-Chuan Chang
IAO
Chenyi Li
0
0
0
0
0
(49,000)
(20,000)
0
(22,000)
(5,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-
-
0
0
0
20,000
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
(50,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(3,000)
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
Note: 1. Vice Presidents Jen-Liang Lin transferred and Hou-Chun Liu resigned in 2023. Vice Presidents Chang-Chieh Tien and Fu-
Chuan Chang retired, Internal Audit Officer Chenyi Li transferred in 2024.
128
3.7.1
Shares Trading with Related Parties:
Name
Reason
for
transfer
Transaction
date
Counterparty
Sheng-Hung Li
Gift
2023.02.21
Yi-Je Li
Counterparty's relationship
with the Company, Directors,
Supervisors, Managers, and
shareholders with more than
10% ownership interest
Father and Son
Shares
Transaction
price
100,000
23.5
3.7.2
Shares Pledged with Related Parties: None
129
3.8
Relationship among the Top Ten Shareholders
April 2, 2024 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
Spouse, relative of
second degree or
closer, and
relationships among
top 10 shareholders
Name Relationship
-
-
-
0.39%
-
-
-
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
0
0% None
None
0% None
None
0% None
None
Shares
307,299,000
Cathay MSCI Taiwan
ESG Sustainability High
Dividend Yield ETF。
Yuanta/P-shares
Taiwan Dividend Plus
ETF
Kinpo Electronics, Inc. 151,628,692
188,121,998
Shareholding
Percentage
6.97%
4.27%
3.44%
-
-
-
Sheng-Hsiung Hsu
8,975,401
105,452,108
0.20% 17,107,025
-
2.39%
New Labor Pension
Fund
Yuanta Taiwan High
Dividend Low Volatility
ETF
JPMorgan Chase Bank
N.A., Taipei Branch in
custody for Vanguard
Total International
Stock Index Fund, a
series of Vanguard Star
Funds
Vanguard Emerging
Markets Stock Index
Fund, A Series of
Vanguard International
Equity Index Funds
JP Morgan Chase Bank
Custody ABP
Retirement Fund
Investment Account
Citibank (Taiwan) Ltd.
in custody for Norges
Bank
Labor Insurance Fund
70,191,000
1.59%
56,405,652
1.28%
54,891,900
1.25%
54,223,699
1.23%
48,344,697
1.10%
38,471,531
0.87%
-
-
-
-
-
-
130
3.9
Ownership of Shares in Affiliated Enterprises
December 31, 2023 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
2,000,000
330,276,403
44,540,079
4,646,143
29,500,000
6,000,000
20,000,000
100.00
100.00
100.00
100.00
91.00
100.00
-
-
-
-
-
-
71.46 2,250,000
22.71 38,197,115
30.00
5,064,999
100.00
100.00
100.00
-
-
-
- 500,000,000
- 90,000,000
- 100,000,000
- 29,500,000
- 9,100,000
- 2,000,000
0.49 332,526,403
19.48
32.70
82,737,194
13,157,285
- 29,500,000
- 6,000,000
- 20,000,000
10,000,000
100.00
-
- 10,000,000
20,014,952
100.00
-
-
20,014,952
29,060,176
42.96 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
19.84 7,032,133
18.74 34,447,153
20.66
100.00
100.00
100.00
430,000
-
-
-
53.58 37,000,000
3.91
13.73
15.60
5,304,718
17,189,863
75,751,657
0.59 15,354,070
- 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
71.95
42.19
62.70
100.00
100.00
100.00
100.00
100.00
62.28
88.61
75.00
53.55
50.12
42.00
31.63
33.57
34.34
21.25
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
131
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
402,500,000
70.00
-
- 402,500,000
30,000,000
100.00
30,000,000
POINDUS SYSTEMS CORP.
11,768,199
56.04
44,000
0.21
11,812,199
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
100.00
Compal Healthcare &
Technology Ltd.
Compal Mexico Electromex, S.A.
de C.V.
4,000,000
100.00
-
- 4,000,000
-
99.9
-
0.1
-
100.00
Note: Investments made by the Company using the Equity Method.
132
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
April 2, 2024
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
133
4.1.2 Status of Shareholders
Analysis
Government
Agencies
Financial
Institutions
Other
Institutions
Foreign
Institutions and
Natural Persons
Domestic
Natural
Persons
Treasury
stocks
Total
Number of
Shareholders
Shareholding
(shares)
Percentage
4
36
353
1,304
217,732
0
219,429
3,539 478,369,333 725,763,807
1,936,254,617 1,266,755,329
0 4,407,146,625
0.00%
10.85%
16.47%
43.94%
28.74%
0.00%
100.00%
April 2, 2024
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 2, 2024
46,052
131,279
22,895
7,041
3,796
3,118
1,342
824
1,422
608
349
143
83
60
417
219,429
9,330,263
278,121,483
175,234,020
87,381,060
69,396,692
79,130,313
47,668,309
38,263,426
101,138,086
84,719,552
97,662,303
70,010,158
57,082,055
54,022,319
3,157,986,586
4,407,146,625
0.21%
6.31%
3.98%
1.98%
1.57%
1.80%
1.08%
0.87%
2.29%
1.92%
2.22%
1.59%
1.30%
1.23%
71.65%
100.00%
4.1.4 List of Major Shareholders
Shareholder’s name
Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF
Yuanta/P-shares Taiwan Dividend Plus ETF
Kinpo Electronics, Inc.
New Labor Pension Fund
Yuanta Taiwan High Dividend Low Volatility ETF
JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Total International
Stock Index Fund, a series of Vanguard Star Funds
Vanguard Emerging Markets Stock Index Fund, A Series of Vanguard International
134
Shares held
307,299,000
188,121,998
151,628,692
105,452,108
70,191,000
56,405,652
April 2, 2024
Percentage (%)
6.97%
4.27%
3.44%
2.39%
1.59%
1.28%
54,891,900
1.25%
Equity Index Funds
JP Morgan Chase Bank Custody ABP Retirement Fund Investment Account
Citibank (Taiwan) Ltd. in custody for Norges Bank
Labor Insurance Fund
54,223,699
48,344,697
38,471,531
1.23%
1.10%
0.87%
4.1.5
Market Price, Net Worth, Earnings, and Dividends per Share
Measurement
Per-share
market price
High
Low
Average
Per-share net
worth
Before dividend
After dividend
Year
2022
27.20
20.55
23.24
26.69
25.48
2023
40.85
22.60
28.58
27.45
26.24 (Note)
Earnings per
share
Before
adjustment
After
adjustment
Cash dividends
Weighted average
outstanding shares
Earnings per share
Weighted average
outstanding shares
Earnings per share
Per-share
dividend
Stock dividends
From earnings
From capital reserves
Cumulative unpaid dividends
Analysis of
investment
returns
P/E ratio
Price to dividends ratio
Cash dividend yield
4,357,129,194
4,357,129,194
1.67
1.76
4,357,129,194
4,357,129,194
1.67
1.20
-
-
-
13.92
19.37
5.16%
1.76
1.20 (Note )
-
-
-
16.24
23.82 (Note)
4.20% (Note)
Note: The 2023 distribution of earnings was resolved at the February 29, 2024 Board of Directors’ Meeting.
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
135
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, 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. The Board of Directors' resolution on dividend distribution
‧ The 2023 distribution of earnings of shareholders’ dividends in the amount of TWD 4,407,146,625 was
approved by the Board of Directors Meeting on February 29, 2024. 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 6, 2024, and cash distribution has been paid out on April 26,
2024
3. When there is a significant change in the expected dividend policy, it should be stated: None.
4.1.7 Impact on 2023 Business Performance and EPS resulting from Stock Dividend Distribution:
Not Applicable (The Company did not disclose 2024 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
136
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
the subsequent year as a change in accounting estimate.
3. 2023 employee compensation proposal passed by the Board of Directors
‧ Accrued employee compensation is TWD 814,142,600 and Directors compensation is TWD
43,051,019.
‧
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 2022 employee and Directors compensation:
‧ Accrued employee compensation is TWD 750,945,090 and Directors compensation is TWD
39,709,200.
‧ The 2022 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
137
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.
Quantity of represented
securities
40,000,000 ordinary shares of Compal
Electronics
1. Voting rights:
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
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
custody agreements
Per
Unit
Market
Price
2023
Year-to-date
April 2, 2024
High
Low
Average
High
Low
Average
According to the terms of the depository agreement and the laws of the Republic of
China, the GDR holder is entitled to the voting rights of shares represented under the
Global Depositary Receipts.
2. Rights to dividend distribution, share subscription, and other rights:
Unless otherwise specified in the agreement, the GDR holder carries identical rights
as do ordinary share holders
N.A.
JPMorgan Chase Bank, N.A.
JPMorgan Chase Bank, N.A., Taipei
Branch
1,702,586 units (April 2, 2024)
Borne by participating shareholder(s)
JPMorgan Chase Bank, N.A.
N.A.
JPMorgan Chase Bank, N.A., Taipei Branch
Allocated proportionally between the
Company and participating shareholders
See descriptions below
USD $ 6.50
USD $ 3.74
USD $ 4.56
USD $ 6.40
USD $ 5.45
USD $ 5.85
2. Key terms of the depository and custodian agreement
(1) Key terms of the depository agreement
■ Depository receipts
Each depository receipt represents 5 ordinary shares of Compal Electroinc Inc..
■ Transferability /Settlement
Application will be made to the Depositary Trust Company ("DTC"), Euroclear and Clearstream for acceptance
of the GDRs for their respective settlement in their book-entry settlement systems. Transfers of the GDRs will
be permitted only within DTC, Euroclear and Clearstream in accordance with their usual rules and operating
procedures.
■ Deposit and Cancellation of Compal’s Shares
138
After the initial offerings and deposit of the GDRs and subject to the applicable laws and regulations, the
Deposit Agreement and the Custody Agreement, and payment of relevant fees, GDR Holders will be entitled
to withdraw and take delivery of the underlying shares represented by such GDRs. GDR Holders may also
request the Depositary to sell the underlying shares on their behalf. Upon receipt of any proceeds from any
such sale, the Depositary shall convert or cause to be converted any such proceeds into US dollar and distribute
any such proceeds after deduction or payment of any fees, expenses, and taxes incurred in connection with
such sale, as provided in the Deposit Agreement to the GDR Holders.
Investors may deposit the underlying shares for issuance of additional GDRs in respect of such shares in
accordance with the relevant R.O.C laws and regulations as well as the relevant provisions of the Deposit
Agreement and Custody Agreement.
The GDRs are listed on the Luxembourg Stock Exchange.
■ Dividends and other Distribution
The Depositary shall convert all cash dividends received by it in connection with the underlying shares into US
dollars in accordance with relevant R.O.C laws and regulations and distribute the resulting US dollars to the
GDR Holders in proportion to the number of GDRs representing the underlying shares held by each of them,
after deduction or upon payment of the fees and expenses of the Depositary and relevant taxes.
The Deposit Agreement will contain arrangements for dealing with the amount required to be withheld
according to the applicable R.O.C laws and regulations on account taxes or other governmental charges payable
in respect of dividends and distributions, whether in cash or stock.
If a distribution is made by the Company in the form of stock dividends (including stock dividends distributed
from retained earnings or capital reserves), to the extent permitted by R.O.C laws, the Depositary will, subject
to the terms of the Deposit Agreement, adjust the number of shares represented by the Master GDRs and
cause DTC, Euroclear and Clearstream to distribute to the GDR Holders, in proportion to their holdings,
additional GDRs. If such a distribution cannot be made in accordance with the provisions of the Deposit
Agreement, the Depositary will sell the shares so received and distribute the proceeds, after deduction or upon
payment of the fees and expenses of the Depositary and relevant taxes, to the GDR Holders. Sales of the
stock dividends, if any, should be handled in accordance with the Deposit Agreement and R.O.C laws.
■ Taxes
‧ The dividends (cash or stock) distributed by the Company will be subject to the prevailing rate of withholding
tax.
‧ GDR Holders wishing to cancel GDRs and who instruct the Depositary to sell the underlying shares in the
Taiwan Stock Exchange will be subject to the Securities Transaction Tax at the prevailing rate.
‧ Currently there is no capital gains tax on the sale of shares. The rates and reimposition of the capital gains
tax on the sale of the shares are subject to changes to the applicable R.O.C laws
(2) Key terms of the custody agreement
■ Deposit of the Underlying shares for the Issuance of GDR(s):
The underlying shares issued by Compal when presented to the Custodian for deposit as the basis for issuance
139
of GDR(s), must be accompanied by the documents requested by the Custodian.
■ Notification of Depositary to Issue GDR(s):
The Custodian, upon receipt of the Compal’s issued underlying shares, shall notify the Depositary immediately
of the deposit of the underlying shares for issuance of GDR(s). Upon receipt of such notification, the
Depositary shall issue and deliver the GDR(s) representing the underlying shares to the beneficial owners, to
the extent permitted by applicable laws.
■ Release of Underlying Shares Upon Cancellation of GDR(s):
The Depositary shall immediately notify the Custodian of the surrender of GDR for cancellation against release
and delivery of the underlying shares to the person designated by the Depositary, or, at the request of GDR
Holders, dispose of the shares in the market and cause the proceeds to be made available to the Depositary to
be distributed to the GDR Holders. The Custodian may require and collect payment from the person
designated by the Depositary a sum sufficient to reimburse it for any taxes or other charges levied.
■ Share Reconciliation as of the Record Date
The Custodian shall advise the Depositary as of the close of business on each Record Date of the total number
of the Company's underlying shares deposited with the Custodian.
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
140
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, Gaming, notebooks, 2-
in-1 Notebooks, AIO, 5G Module, 5G User Equipment, 5G Small Cell, 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.
■ 2023 Revenue contribution
Major Divisions
(%) of Total Sales
5C electronics
Other products
Total
99.6%
0.4%
100%
2. Current and future product development
■ Notebooks
In 2023, Compal demonstrated unprecedented R&D efficiency by introducing notebooks equipped with the
latest processors from Intel and AMD. Leveraging our expertise in system integration and manufacturing, we
quickly enabled our clients to deploy products with the newest technical specifications, targeting the market
needs for AI computation, personalization, and data privacy. We launched high-end notebooks designed
specifically for the commercial and professional markets, highlighting their superior performance and
professional orientation. As the demand for AI surged with the rise of various applications, the market need for
notebooks also evolved. Despite economic headwinds, such as inflation and geopolitical challenges, causing a
decrease in demand for general consumer models, the demand for commercial models has been growing. This
is due to Microsoft's impending end of support for Windows 10, prompting brands to increase their investments
in the commercial and high-end notebook market. Compal seized this opportunity by integrating innovative
techniques and advanced technology into product design, aiding our clients in achieving remarkable success in
the competitive notebook market and pioneering the development of AI notebooks in collaboration with
industry-leading technology partners. Looking forward to 2024, we will continue to align with market trends,
introducing advanced technical specifications in new notebooks, assisting our clients in securing higher market
shares across various product categories, and creating a win-win situation for both Compal and our clients.
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■ Ultraslim Notebooks
Compal, leveraging innovative technology and extensive R&D capabilities, continues to lead in the ultraslim
notebook market. By incorporating the latest processors from Intel and AMD along with cutting-edge
advancements, we have crafted products that are slim, lightweight, stylish, and durable. These products
expertly balance performance and efficiency, ensuring optimal productivity for users. In response to the AI era,
Compal is poised to introduce cutting-edge ultraslim notebooks integrated with AI computational capabilities
in 2024. These notebooks not only adhere to industry standards for AI PCs but also provide always-connected
capabilities and advanced 5G technology, revolutionizing the PC experience for users. In this new era of AI PCs,
Compal is committed to developing notebooks that boast high performance, portability, human-centric design,
extended battery life, privacy security, and high-speed 5G connectivity. Through deep integration of AI
technology, our aim is to significantly enhance the user experience.
■ Gaming Notebooks
The gaming market continues to expand, and Compal is actively engaged in the development of gaming
notebooks, collaborating with clients to bring them to market. With the continuous evolution of gaming,
consumers' demand for high-performance, immersive gaming experiences in gaming notebooks is increasing,
expecting outstanding performance in various scenarios. Our products feature diverse designs and cutting-edge
technology, including the latest processors, graphics chips, patented innovations, and advanced cooling
solutions, ensuring the best gaming experience.
■ 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 and 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 distinctive 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 that combines a screen and computer with a
truly special thin shape. The product has replaced the desktop in many households and corporations. Compal,
in its design, not only utilizes a unique rotating hinge that allows for adjustable screen angles but also
incorporates smart applications, wireless charging for smartphones, and uses sustainable, environmentally
friendly materials to provide the best writing experience. Because Compal has the fundamental technical
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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 (B5G) that leverages satellite
communication technology to expand the coverage of 5G networks. This enables the creation of a globally
covered wireless communication network and builds 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 fulfillment of various communication demands, both for broadband
networks 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, 5G O-RAN and 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 the 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, and offers a highly end-to-end integrated 5G networking infrastructure
solution (the so-called 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 millimeter waves 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 and solutions, 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.
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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, earning recognition from
leading global brand customers through its abundant manufacturing achievements, professional technical
experience, and reliable product quality. 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 opportunities and
raise profits.
■ Smartphones
Compal continuously implements automation solutions to optimize assembling and testing processes at
factories, improve quality, and improve operation efficiency. In addition to stabilizing OEM of 5G smartphone
business, Compal explores more business opportunities from entry premium segment to premium or ultra
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
smartwatches. In addition to the development of more compact and energy efficient smartwatches, we are also
devoted to expanding our wearable product lines to satisfy various requirements from our customers.
■ Smart Hearable Devices
Compal has been consistently developing wireless Bluetooth technology. These advancements encompass
broadcasting, extended usage time, improved wearing comfort, as well as software development for noise
reduction and transparency modes. Simultaneously, through the integration system of LE Audio, Compal is
committed to developing peripheral applications for Bluetooth headphones, and will continue to apply these
technologies to products such as wireless Bluetooth headphones, wireless Bluetooth hearing aids, and wireless
Bluetooth PSAPs.
■ Smart Display Products
The global smart TV penetration rate has exceeded 92%, and consumers are accustomed to using smart TVs to
consume streaming media. As consumer demand changes, Compal has contributed its accumulated technology,
cooperated with customer needs and strategic partners, and successfully developed new smart platforms and
models. Mass production and launched them in 2023. In the future, we will continue to optimize image quality
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design, adopt artificial intelligence (AI) image processing and sound processing, integrate large-size touch, ultra-
high-brightness backlight, transparent OLED panels and state-of-art technologies. In addition to the consumer
market, we will also target new business opportunities in the commercial and specific-purpose markets.
■ AR/VR Smart Devices
Compal is based on computing, display and wearable design experiences, and communication capabilities, and
it is applied to AR/VR devices and cooperates deeply with Qualcomm. In the future, for vertical customers,
Compal will combine hardware, software solutions, and 5G communication into a standard 5G AR/VR solution
to meet customer needs.
■ Smart Home Devices
The rise of the Internet of Things (IoT) and AI technologies has facilitated smart home devices with smart voice
assistants to become a potential product in the industry. Compal has already been recognized by our global
customers for our engineering capability in 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.
■ AR Vertical Solutions
In the development of the metaverse, vertical application solutions are one of the main market demands,
enhancing real-world perception by adding virtual elements. These virtual elements can take the form of
images, sounds, animations, or other perceptual information, integrating with the real world to provide users
with a richer interactive experience. The extensive applications of AR include:
Retail and e-commerce: AR can be used for virtual try-ons of clothing, glasses, accessories, etc., allowing
customers to intuitively understand the style and size of products when shopping online. It can also be used for
virtual placement of furniture and home products, helping customers preview their effects in actual spaces
before purchase.
Education and training: AR can provide interactive learning experiences, such as presenting 3D models,
animations, or other learning content through augmented reality books or applications, helping students better
understand and memorize knowledge.
Tourism and cultural heritage: AR applications can provide guided tours, explanations, and interactive
experiences at tourist destinations, allowing visitors to gain a deeper understanding of the local history, culture,
and attractions.
Industry and manufacturing: AR technology can be used to provide real-time information and guidance in real-
world work environments, such as displaying operating steps, marking components, or providing real-time
troubleshooting guidance during assembly processes.
Healthcare: AR can be used for training healthcare professionals, surgical planning and guidance, patient
education, visualization of medical records, etc. Additionally, AR technology can also be used for virtual reality
therapy, pain management, and physical function rehabilitation.
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Advertising and marketing: AR can provide unique interactive advertising and marketing experiences, such as
AR filters for brand promotion, virtual product displays, and trials.
Architecture and real estate: AR technology can be used to showcase virtual building models, interior designs,
and renovation effects in construction projects, helping clients better understand and preview architectural
projects.
These are just some of the applications of AR technology, and as technology continues to develop and innovate,
AR will continue to play a role in more fields.
■ Smart Medical and Healthcare
The aging population, China’s new two-child policy, the flourishing healthcare 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 through 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 care, using our strengths in integration and extensive experience in product development. The
designs, which include science, technology, and humanity, help caregivers to provide higher quality services and
also give hope of a better quality of life and personal dignity to those who need healthcare.
■ Smart Medical Imaging System
Seeing the increasing demand for AI-based image information infrastructure in the market, in the international
medical market sector, small hospitals, clinics, or telemedicine stations have a growing need to replace
traditional film reading systems. Inventec is actively entering the smart medical image system field, including
PACS (Picture archiving and communication system) or Smart Operating Room imaging systems, hoping to
enhance AI infrastructure for hospitals or medical-related diagnostic fields.
■ 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 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. Also, more AI
products are necessary for a significant increase; we also increase this kind of server in our production line.
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5.1.2
Industry Overview
1. Current and future industry prospects
■ Notebooks
During the peak of the COVID-19 pandemic, global notebook shipments surged due to the increased demand
for remote work and distance learning. However, since 2022, demand has begun to slow down, compounded
by unresolved global inflation and ongoing geopolitical unrest, leading to a total shipment of 185 million units
in 2023, a 12.9% decrease compared to 2022. Despite this, shipments remained above pre-pandemic averages.
Looking forward to 2024, as the global economy gradually stabilizes and recovers, anticipated demand for
upgrades driven by operating system updates and AI applications is expected to lead to moderate growth in
shipments. Economic challenges and cautious IT spending due to inflation resulted in the postponement of
many commercial PC procurement plans for this year. These positive factors provide an optimistic outlook for
the notebook market, with brands responding to market needs for AI applications and commercial PC
replacement demands by launching more targeted products to seize opportunities. In this transition, forward-
looking technology, precise market segmentation, product positioning, and innovative design become crucial.
Compal, with its extensive experience, advanced technology, and a wealth of exclusive patents, is well-
positioned to collaborate with partners and clients to develop innovative and high-quality products that meet
market demands.
■ Ultraslim Notebooks
The trend towards ultraslim notebooks continues to thrive in the NB market. With the widespread adoption of
SSD and diversifying use cases, ultraslim notebooks are no longer confined to the premium market, with brands
launching more affordable ultraslim models. According to IDC data, shipments of ultraslim notebooks (less than
18mm thickness) reached 61.9 million units in 2023, and it is estimated that ultraslim notebooks will account
for 35% of global notebook shipments in 2024. Compal is constantly innovating in lightweight materials, power-
saving, and cooling technologies, developing industry-leading products that have been well received by the
market.
■ Gaming Notebooks
In 2023, the gaming industry continued to show robust growth despite economic uncertainties and inflationary
pressures on consumer spending. As the world gradually recovered from the pandemic, the demand for home
entertainment and gaming remained strong, indicating an ongoing transformation in consumer behavior and
needs. Faced with economic constraints, consumers became more cautious in their purchasing decisions, yet
the interest in mid to high-end gaming products persisted, underscoring the value of gaming products to
consumers. Gaming notebook shipments reached 24 million units in 2023, outperforming the overall notebook
market. Looking forward to 2024, as inflation cools down and with the advancement of AI applications, key
component technologies, and product innovation, the attraction of gaming products is expected to rise further,
driving continuous growth in the gaming notebook market.
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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 to 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 sizes. 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 2023 was
approximately 85 million units. It is estimated that brand manufacturers will launch more diversified 2-in-1
products integrating 5G networks and AI-related applications in 2024, 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 designs to enhance
visual comfort. In addition, 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 exceed 9 million units
in 2024.
■ 5G Module, 5G User Equipment, 5G Small Cell, 5G O-RAN and Private Network solution
According to the GSA, to the end of 2023, there are 585 operators officially providing 5G network
communication products and services in more than 176 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, tablets, network sharing devices
(CPE/MiFi), routers, dongles, notebooks, 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.
According to SNS estimates, the global private network market will grow to USD 3.4 billion in 2025 with a CAGR
of 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
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solution will improve 5G coverage and vertical applications.
■ Tablets
The demand for tablets experienced a significant decline in 2023 due to the premature consumption caused by
the pandemic, slowing global economic growth, and the ongoing market erosion by large-screen smartphones.
According to IDC data, global tablet shipments in 2023 were approximately 128 million units, down 20.5% from
2022, marking the lowest shipment volume since 2011. The main reasons for this decline include consumer
concerns about future economic prospects, leading to reduced spending on consumer electronics or
reallocating budgets to other products, with particularly noticeable declines in shipments in the North American
and European markets. Leading brand Apple did not introduce any updates to its iPad products, which also had
a certain impact on replacement demand in the tablet market.
Competition in the tablet market is becoming even fiercer in the future with the entry of smartphone
manufacturers such as Huawei, Xiaomi, Honor, vivo, OPPO. By leveraging existing technology and experience in
the smartphone domain, these manufacturers will bring more innovation and competition to the tablet market,
driving technological advancements and price competition.
However, there is still demand for mid/high-end tablets aimed at education purposes; serving as cheaper
alternatives to PCs. Additionally, due to economic downturns, there is a trend towards using consumer tablets
in industrial or vertical industry applications to save IT expenditures for business. In the future, Compal will
continue to monitor and respond to market changes, providing customers with competitive and diverse tablet
products.
■ Smartphones
According to IDC, the global smartphone sales volume in 2023 was about 1.17 billion units, with a YoY decrease
of 3.2%. The main reason for the decline in sales volume was general economic changes and high inventory at
the beginning of the year, but the growth in the second half of the year underpins an expected recovery in 2024.
In general, the global smartphone market still faces challenges, but recovery momentum is developing rapidly.
Compal continues 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 2023, the smartwatch market is expected to grow at an annual growth rate of 11.2%. Apple
is still the top vendor by market share. However, the market growth mainly comes from low-end products,
especially driven by the Indian market. Affected by China's economic downturn and EU & US market saturation,
Apple's WatchOS has declined, while Google's WearOS has maintained flat or only single-digit growth. In 2024,
Compal continues to provide best-in-class manufacturing and ODM services with the latest technical
developments for brand customers. By integrating the latest smartwatch platform and technologies, Compal
provides a variety of product design solutions hand-in-hand with brand customers to meet the demand of
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different target market segments, and end-user attributes.
■ Smart Hearable Devices
According to the latest report from Counterpoint Research, despite the overall unfavorable economic conditions
and weakened consumer demand leading to a decline in the demand for consumer electronic devices, the
global sales of wireless Bluetooth headphones in the first half of the year 2023 only decreased by 2% compared
to the same period last year. It is speculated that true wireless Bluetooth headphones are relatively less affected
by inflation to some extent. In addition to continuously enhancing hearing services in Bluetooth headphones,
Compal also aims to use the next-generation Bluetooth technology, LE Audio. This technology not only offers
better sound quality, energy efficiency, longer usage time, and extended effective range but also features
broadcasting functionality that allows simultaneous connections to multiple devices. Compal will gradually
introduce related integrated technologies, hoping to collaborate with customers to explore new markets in
entertainment, healthcare, public services, and more.
■ Smart Display Products
According to market research companies, the global LCD TV industry saw a decline in overall shipments in 2023,
with approximately 201 million units shipped worldwide, a 1% decrease from the previous year. This was due
to various factors including the Ukraine-Russia conflict, and rising inflation. The North American market was
continuously impacted by inflation, which led to decreased demand. As a result, all TV major brands resorting
to focusing on low price models and causing market price competition and challenges. Looking ahead to 2024,
challenges still remain such as conservative demand and micro-magement of panel production capacity. In
response to these challenges, our company will optimize operations and maintain flexibility, deepen strategic
partnerships, and adapt to the changing market conditions not only in consumer markets but also in commercial
and specific-purpose markets.
■ AR/VR Smart Devices
The Metaverse business opportunities have not bloomed as expected, and leading international customers have
turned to more practical development. We will deepen the application of AR/VR smart head-mounted displays
in vertical market segments such as smart factories, smart healthcare, and remote collaboration. With the
launch of Apple's Vision Pro, AR/VR will further deepen the development of spatial computing in the future,
and combine with generative artificial intelligence (Generative AI) functions to become an assistant for the
acceptance and transmission of work knowledge in the commercial industry. Therefore, we will focus on
providing AR/VR solutions for the commercial and industrial markets.
■ 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.
Today, the smart home market is no longer just attracting early adopters of technology enthusiasts but is
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gradually entering the mainstream consumer market. With the adoption of the Matter standard, more
manufacturers have the opportunity to expand smart home applications, providing compatibility, security, and
ease of use to new consumer groups. Furthermore, with the evolution of generative AI, the future integration
of large-scale language models (LLMs) into smart homes will bring more advanced and mature artificial
intelligence, which will be reflected in voice interaction, image recognition, and home automation, providing
consumers with smarter and more convenient user experiences.
■ AR Vertical Solutions
The development of the augmented reality (AR) industry has been in a progressive stage over the past few
years, and it has been widely applied across various sectors, with expectations for further expansion in the
future. This is primarily influenced by technological advancements, increasing consumer demands, and
increased investment in AR applications by businesses. Industries benefiting from AR include retail, education,
healthcare, industrial manufacturing, and entertainment, among others. As technology matures, the
applications of AR are expected to become increasingly diversified.
Simultaneously, the technological capabilities of hardware devices such as AR glasses and head-mounted
displays continue to improve, with costs gradually decreasing. This will facilitate broader adoption of AR
technology and spur major tech companies as well as emerging enterprises to develop and enhance AR
software platforms, providing developers with more robust tools and resources to create various AR
applications and offering users richer content and immersive experiences. With the proliferation of AR
applications, it can be anticipated that consumer acceptance of AR technology will continue to rise. More
people are beginning to incorporate AR technology into their daily lives, which will contribute to the sustained
growth of the AR market and establish it as a technology and industry of significant influence in the future.
■ Smart Medical and Healthcare
Increasing shortages of medical staff over recent years have 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 collaborates with athlete training
centers, both at home and abroad, to develop exclusive high-end products for professional athletes.
■ Auto electronics (AE)
In recent years, governments all over the world have been tightening the exhaust emissions standards and
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safety standards of vehicles and have set a timeframe for implementation. Electrification, connectivity, and
ADAS/AD become the megatrends that 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 the
traditional supply chain and competitive environment in automotive. Driven by new entrants into the market,
new technology introduction and the 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 the auto
industry, we have equipped ourselves with ITAF 16949 and ISO 26262 certified and deployed 5G networking
access and ADAS technologies. Since 2021, we have built a plant in North America to supply customer demand
locally.
■ Servers
Server shipments have double-digit recession compared with last year, mainly due to traditional cloud services
necessary decrease impact, overall economic deterioration, corporate reduced investment and the rise of AI
demand that has squeezed corporate budgets for purchasing traditional servers. According to IDC, shipment of
x86 servers totaled 14.80 million units in 2023. This is expected to rise to nearly 15.53 million units in 2024. X86
servers accounted for 92.65% of total server shipments. Rack-mounted servers represent a higher market share
because they are both energy efficient and scalable. And AI Sever demand has significantly increased.
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 from geopolitical issues,
regional conflicts, and climate issues, which have caused difficulty in global production and logistics since 2018.
Compal and other Taiwanese ODMs/OEMs possess distinctive know-how in 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 launch notebooks that are 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 the 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 a 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 and 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 touchscreen
panels. HP, Lenovo, and Dell focus not only on commercial users but also on home multimedia users. Apple’s
emphasis is on professional applications and usage.
■ 5G Module, 5G User Equipment, 5G Small Cell, 5G O-RAN and 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 domain services and requirements.
■ Tablets
Due to weak demand, the supply chain remained at a relatively high inventory level in 2023. Compal also
adjusted its product strategy by maximizing the adoption of the same components or shared designs for
different products to lower the risk of fluctuations in customer demand. Additionally, in order to enhance cost
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advantages in overseas production bases outside of China, Compal actively developed local suppliers to ensure
more flexible production and supply, meeting customer and market expectations for product pricing, delivery
times, and quality.
■ 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
Compal collaborates closely with Bluetooth chipset suppliers and audio component manufacturers, engaging in
deep cooperation. Additionally, Compal stays closely informed about next-generation Bluetooth LE Audio
technology. Through ongoing communication with key customers, Compal adjusts its product development
strategies, concurrently expanding into new markets such as entertainment, healthcare, and public services.
■ Smart Display Products
In 2023, the global supply chain was continuously impacted by 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
Compal has partnered up with main chipset supplier Qualcomm and continued to cooperate in depth to jointly
build a highly cost-effective reference design, integrate midstream and downstream partners, such as optical
engine development and production, and provide a complete set of software and hardware solutions for AR/VR
vertical application fields to meet the needs of the commercial market.
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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.
■ AR Vertical Solutions
The augmented reality (AR) industry exhibits a close interdependence among its upstream, midstream, and
downstream sectors, mutually supporting and driving the development of the entire industry.
The upstream sector mainly comprises hardware manufacturers and technology providers. Hardware
manufacturers are responsible for the development and production of AR glasses, head-mounted displays, and
other devices, while technology providers focus on researching and developing AR technologies such as
perception technology, virtual image processing, tracking technology, etc. They directly influence the hardware
and software technology levels of the AR industry, as well as the overall performance and functionality of
products.
The midstream sector primarily consists of software developers and solution providers. Software developers
create AR applications, platforms, and tools, while solution providers offer AR-based solutions for various fields
such as education, retail, industrial applications, etc. They directly impact the diversity and quality of AR
applications, as well as their scope and effectiveness in different industries.
The downstream sector mainly includes end-users and consumers. End-users can be businesses, educational
institutions, medical facilities, etc., or individual consumers who are the ultimate users of AR products and
applications. Consumer demand and feedback directly influence the market demand and direction of the entire
AR industry, driving continuous innovation and improvement of products and services by upstream and
midstream sectors.
Compal's continuous development of integrated system service products in collaboration with manufacturers
and close cooperation with the industry chain is crucial for the sustained development of the AR industry.
Collaboration and coordination among various sectors of the industry chain, coupled with ongoing technological
and product innovation, will facilitate the advancement of the entire industry, meet market demands, and bring
forth more innovative application scenarios.
■ 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.
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• 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
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 complications. 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
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maintained. The most important feature of this product is that it works with different types of Smart Home
devices and medical instruments, and it 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 Taiwanese manufacturers have developed a comprehensive
supply system for upstream, mid-stream, and downstream partners. Main parts such as CPUs, memory, and
storage drives are easily secured and downstream customers such as HPE, DELL, and Lenovo all have long-term
notebook manufacturing relationships with Compal. Compal now has extensive experience and a reputation for
designing and manufacturing server products.
3. Product trends and competition
■ Notebooks
• As AI technology rapidly advances, the notebook market is undergoing an unprecedented transformation.
Microsoft's integration of Copilot into its operating system marks a milestone in software innovation,
signaling significant updates in hardware specifications such as keyboards, memory, processors, and other
sensory components. Neural Processing Units (NPU) related to AI are becoming standard in the next
generation of notebooks, promising users a smoother and more intelligent experience. Furthermore, with
chip manufacturers vying for market share in AI computation, the notebook market is swiftly transitioning
into an era of intelligence.
• With the widespread application of AI technology across various industries, its rapid development has
become a key driver for the growth of the global notebook computer market. In response to this trend,
semiconductor industry leaders, including Intel, AMD, and ARM-based Qualcomm, are actively developing
and launching processors equipped with AI computational capabilities, aiming to secure a leading position
in the market. The introduction of these processors not only signifies intensified competition between the
x86 and ARM platforms but also heralds a new wave of technological innovation in the notebook industry.
This will provide consumers with a broader range of product choices and enhanced user experiences.
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• To cater to diverse application needs, the industry plans to launch a variety of notebooks, including gaming,
creator, and high-end ultraslim models, targeting different customer segments. Equipped with AI processors
and advanced sensing technologies, these are expected to hit the market soon, significantly enhancing
performance and user experiences, thereby boosting creativity and productivity.
• As the integration of AI technology with mobile devices and cloud computing progresses, the demand for
security features has significantly increased. The adoption of AI not only enhances device performance and
user experience but also introduces new challenges in information security, especially in data processing and
storage. In response, the development and adoption of advanced security technologies, such as fingerprint
recognition, facial recognition, voice recognition, and camera privacy shutter, have become crucial. These
measures not only ensure the security of user data but also enhance usability.
■ Ultraslim Notebooks
• Slim design, high screen-to-body ratio, enhanced sensor components, and cybersecurity protections are key
factors for consumer choice.
• New generation processors, combined with a Neural Processing Unit (NPU) for AI capabilities, significantly
improve multitasking efficiency.
• AI-optimized power management extends battery life for longer usage.
• Metal chassis not only enhances the product's aesthetic appeal but also its structural integrity.
■ Gaming Notebooks
• High-performance processors with AI technology ensure real-time optimization of gaming performance for
an enhanced experience.
• Slim design with advanced cooling solutions maintains stability and portability.
• Personalized audio and lighting effects boost game immersion.
• Distinctive exterior design highlights brand and player identity.
■ 2-in-1 Notebooks
• Beyond slim designs and portability, consumers now expect multitasking processors, extended battery life,
and stylus support
• The integration of AI and 5G technology broadens the application scope for 2-in-1 notebooks.
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■ 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, 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 networks and vertical application solutions.
Compal provides the leading communication technology, product manufacturing and technical know-how. Our
integrated 5G module, 5G devices, 5G Small Cell, 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 displays and designs for automation.
• Focus on more eco-friendly product designs such as recycled material and reparable design.
• Explore collaborative opportunities with content providers or telecommunications operators.
• Adopt AI technology to explore opportunities in education, for kids, industrial, and medical applications.
• Develop a foldable tablet to maintain screen size while reducing the overall size.
Tablets have become mature products. The focus now lies in developing new usage scenarios and optimizing
the overall user experience through AI functionality. This includes catering to various applications such as the
education market, children's market, smart home control centers, or utilization in various industrial IoT
applications, all of which are actively being developed by Compal.
■ Smartphones
• Communication technology enters the 5G communications generation. To provide mobile broadband service
(eMBB) will increase consumer demand for entertainment, applications, 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
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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
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 the
latest smart TV platform, and technologies such as artificial intelligence (AI) image and sound processing,
integrated large-size touch, ultra-high brightness backlight and transparent OLED panel technologies. By
combining these technologies, 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
As we learned about the launch of Meta's Quest 3 and Apple's Vision Pro, the commonalities of technology
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development can be summarized as follows: ultra-high-resolution near-eye display, eye tracking, spatial
perception and computing, and human-computer interface. These technologies are the development trends of
future AR/VR head-mounted displays.
■ 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 for 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.
■ AR Vertical Solution
The development trends and competitive landscape of augmented reality (AR) products are influenced by
various factors, including continuous improvements in hardware technology such as AR glasses, head-mounted
displays, and sensing devices. These improvements primarily manifest in enhanced computing power, display
effects, sensing accuracy, and comfort, providing users with a better overall experience. Additionally, the
software functionalities of AR products are continually upgrading, including image processing, sensing
technology, real-time rendering, etc. Software developers are competing to introduce more feature-rich and
realistic AR applications to meet users' demands for higher quality and greater diversity of applications. The
diversified application demands also drive the development and competition of AR products, with enterprises
striving to develop products with differentiation advantages to meet the needs of different industries. The
popularity of smart wearable devices also propels the development of AR products, providing users with more
convenient and intuitive AR experiences while expanding the scope of AR applications. Due to the immense
market potential of the AR industry, it has attracted numerous companies and startups to enter the competition.
Currently, several major tech companies are investing significant resources in research, development, and
promotion in the AR field, while many emerging enterprises challenge traditional markets through innovative
technologies and applications, leading to increasingly fierce competition. Compal, holding the principles of
continuous innovation, enhancing product performance and functionality, as well as deeply understanding
market demands and industry applications, can gain advantages in the fiercely competitive AR market.
■ Smart Medical and Healthcare
(1) Instruments, equipment, and accessories:
‧ Smart sports
There is already a strong and growing demand from professional athletes for assistive technologies and
devices. Compal has invested significant R&D efforts in collaboration with top sports experts worldwide
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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
As new biosensors and related hardware such as MCU/firmware/biomaterials and software have matured
over recent years, the 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, makes 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).
■ Servers
The rack-mounted server is still the mainstream product today because it can be easily maintained and scaled
up as business grows. Tower servers are still favored among SMEs for their low cost, but their market share has
been steadily declining. Blade servers are relatively expensive to set up and may gradually be replaced by more
simplified High Density servers.
The number of servers required for Data Centers has increased continuously year after year. Although the
demand for conventional enterprise-grade servers has gone down a little, demand for both types of servers will
ultimately reach equilibrium. In addition to cost performance, design flexibility and quick response to customer
needs are the two most decisive factors for a product’s success.
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The rapid growth of AI and high-performance computing demand has caused the thermal power consumption
of CPUs and GPUs to continue to increase significantly. The issue of effective heat dissipation and energy
conservation of servers will become a prominent issue, which will also increase the costs of related industries.
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
2023
19,080,135
946,714,800
2.0
2. New products developed
■ Notebooks
• High-end products: Launching high-performance models designed for professionals, gamers, and
creative workers. These models are equipped with the latest generation processors featuring built-in AI
performance optimization, ultra-high-resolution panels, high refresh rate screens, and high-
performance graphics cards, fully meeting the stringent demands for high performance.
• Mainstream products: 16-inch and 14-inch products are thin, low voltage, slim bezel and 16: 10 aspect
ratio design that are powered by the latest CPU from Intel or AMD, and 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 is actively developing notebooks, setting industry benchmarks through
technological innovation. Beyond launching innovative foldable notebooks, there is also a commitment
to employing eco-friendly materials and smart manufacturing techniques to develop next-generation
notebooks aligned with sustainability concepts, which are expected to become a new highlight in the
market.
■ Ultraslim Notebooks
• Compal has successfully mass-produced and launched many Ultraslim notebooks, and its designs have
been recognized by several international awards.
• No compromise on performance.
• Not only thinner and lighter but also lower power consumption are key requirements for a good user
experience.
• New ultraslim notebooks will feature thin frame displays for a more fashionable and cleaner appearance;
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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, 5G O-RAN, Private Network solution
• 5G O-RAN Solutions was unveiled in 2023 MWC Barcelona and will obtain certification and mass
production in 2023. These include ORU, ODU, DU inline accelerator, and OCU equipment and solutions.
• Qualcomm X35 5G RedCap R17 M.2 / LGA module will be developed in 2024.
• Mediatek T300 5G RedCap R17 M.2 / LGA module will be developed in 2024.
• Mediatek T700 5G R15 M.2 module will be developed and mass production for 5G NB customers in 2024.
• 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, include Sub-6 and mmWave, developed in 2021 and obtained product
certification.
• MTK T750 5G M.2 / LGA module has 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 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.
• Developed and mass-produced a new generation of waterproof e-Reader with a wireless charging
function.
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■ 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 resistance for sports watches. Customized
product design and more power efficiency to support 3C and fashion brand requests. A new
generation of lighter, smaller, narrow border, multi-purpose smartwatches with diversified designs
have been introduced.
• Mass-produced eSIM enabled LTE smartwatch.
■ Smart Hearable Devices
• Bluetooth headsets with smart assistants 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
• Developed, mass production and launched new TV models with the latest smart TV platform.
■ AR/VR Smart Devices
• Successfully developed a waveguide lens with an optical engine combined with an ergonomic design
structure for AR glass product which was used in a customer’s project.
■ Smart Home Devices
• Smart speakers: successfully mass-produced and launched on the market, assisting European clients in
establishing a more complete ecosystem for smart home appliances.
• Non-contact sleep monitoring device: successfully mass-produced, incorporating low-power
millimeter-wave RF technology and environmental sensors to measure users' breathing and heart rate,
assess sleep quality, and provide recommendations.
• Smart cameras: Continuous development of new features to further enhance user experiences
through the application of additional AI technologies.
■ AR Vertical Solution
• AR (Augmented Reality) and VR (Virtual Reality) glasses have been developed and are being mass-
produced and shipped.
• Achieving the core technology of AR – perception technology, which includes perception and
understanding of the real world, as well as positioning and tracking of virtual information. It’s used to
identify and understand objects, surfaces, and environments in the real world, and determine the
position and posture of virtual information.
• Achieving key AR technology - display technology, which involves displaying virtual information to users
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in an appropriate manner. This may involve real-time visualization of the real world, achieved through
improvements in hardware devices such as head-mounted displays, as well as optimization of display
algorithms and technologies.
• Achieving AR interaction technology, enabling users to interact with virtual information. This includes
the integration and optimization of gesture recognition, voice control, and eye tracking, to provide a
more natural and intuitive user experience.
•
In addition to the development of AR basic technologies, application software development is also one
of the research focuses.
■ 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 done through modular design, and the product specifications required by
customers can be quickly assembled.
• AI Servers
Cooperate with GPU manufacturers to design a high-density AI server so that the server can greatly
improve its image computing capabilities, and seek opportunities to cooperate with existing
customers.
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1.1.4 Long-term and Short-term Development
1. Short-term Development
• Aligning with AI application trends and cross-sector user needs, actively allocating resources to R&D while
integrating AI technology to enhance innovative designs. Dedicated to product differentiation, aiming to launch
innovative products that precede market demand.
• We will enhance operational efficiency to increase our product competitiveness further 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 on 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 with feasible
designs.
• 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 to cooperate 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.
• Actively advancing smart manufacturing and smart factory initiatives, not only innovating in processes but also
incorporating eco-friendly materials in design and across product categories, demonstrating a commitment to
sustainable development.
• Compal continues to invest in technological innovation and research and development to continuously enhance
the performance, functionality, and user experience of AR technology. This includes research and development
in areas such as perception technology, display technology, and interaction technology.
• Compal will continuously optimize existing products and develop new AR products to meet the needs of
different industries and users. This may involve hardware products such as AR glasses, head-mounted displays,
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as well as software applications such as gaming, education, and medical applications.
• Compal engages in cross-industry collaborations to apply AR technology to different industries, creating more
application scenarios and commercial value. At the same time, different products and services can be integrated
to provide more comprehensive solutions.
• Compal will actively expand into the global market, seeking more business opportunities and cooperation
opportunities. This includes establishing global partnerships, conducting market promotion, and building good
relationships with brands.
2. Long-term Development
•
Integrating smart manufacturing and smart factories into the company's culture and operations, emphasizing
continuous process innovation, design optimization, and the extensive use of eco-friendly materials across
product lines to achieve a sustainable development strategy. Aiming to establish an eco-friendly product
ecosystem, propelling the industry towards a greener, smarter future.
• A spirit of innovation will strengthen value-added Company products and improve long-term core
competitiveness.
• Cooperation with our customers will be improved to allow better product planning, development and
manufacture as well as comprehensive after-sales service.
• Horizontal and vertical integration of all parts and products of the Group’s affiliates will be strengthened
strategically and aligned with customer needs, to give them more convenient and complete services.
• Optimization of the quality of sophisticated products will be enhanced by new development and cost structures
and strategic alliances with main parts providers to give customers better and more competitive products and
services.
• Closer horizontal and vertical cooperation will be made with affiliates in the Group to create and strengthen the
loyalty of long-term customers.
• Our ability to innovate will be further cultivated, aimed at more accurate prediction of market trends, before
clients do, and provide them with products and services and high value-added solutions to improve long-term
core competitiveness.
• The Company has established a service-oriented business model and new revenue sources through careful long-
term upstream and downstream integration and cooperation.
• We are strengthening the breadth of learning of our team in preparation for future new business and product
development through cross-industry alliances.
• We are cultivating the ability to control key technology, strategize high-end product lines, and gain cooperation
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.
• Compal not only actively promotes existing product design concepts but also provides practical results to
increase market exposure and brand awareness. This includes utilizing online and offline channels for product
promotion, participating in industry exhibitions and events, demonstrations, etc.
• Compal actively develops potential customers, seeks suitable partners, establishes long-term stable cooperative
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relationships, and builds relationships with optical manufacturers, application developers, and other partners.
• Compal will promptly improve products based on customer feedback and market demands to enhance product
competitiveness and user satisfaction. This may include targeted product improvements, optimization of
service processes, and providing more timely technical support.
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5.2 Market and Sales Overview
5.2.1 Market Analysis
1. 2023 Sales (Service) by Regions
Sales Regions
Americas
Europe
Asia (Including Taiwan)
Other Area
Total
2. Market Share
■ Notebooks
Percentage
45.2%
22.2%
29.9%
2.7%
100.0%
According to IDC statistics, global notebook shipments reached 185 million units in 2023. 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 its 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 worldwide communication standard and trend
that will bring rich product possibilities and high growth.
■ 5G Small Cell, 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. Compal's customized 5G O-RAN, private network and
application solutions can meet the deployment needs of different industrial fields. At present, it has been deployed
in several domestic fields to assist the digital transformation and strengthen the development of the industry.
■ Smart Wearable Devices
Compal is the biggest ODM supplier 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 worldwide brand customers
while studying market demand and adjusting the direction of product development to meet market trends.
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■ 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 and launched the latest smart TV platform in 2023. We have also
received high-quality reviews from consumers, averaging over 4.5 stars, and have successfully secured cooperation
plans with existing customers for next year. We plan to continue our momentum in shipping products and actively
expand our product lines to commercial and specific-purpose markets in order to maintain stable growth in the
future.
3. Future Supply and Demand Situation and Growth of the Market
■ Notebooks
According to IDC, global notebook shipments declined by 12.9% in 2023 due to slowing demand and economic
instability. Looking ahead to 2024, as the economy stabilizes and channel inventories return to healthy levels,
coupled with the upcoming end of support for Windows 10 driving the need for commercial computer upgrades
and the aging of devices purchased during the pandemic, there is an expected boost in computer replacement
demand. Furthermore, the expansion of AI applications and the introduction of processors with AI capabilities by
chip manufacturers will contribute to the increase in shipments quarter by quarter.
■ Ultraslim Notebooks
According to IDC statistics, global shipments of ultraslim notebooks (less than 18mm thickness) reached 61.9
million units in 2023, accounting for 33% of the global notebook market. In 2024, it is estimated that more ultraslim
notebooks will be launched under the competition between x86 and ARM architecture processors.
■ Gaming Notebooks
Entering 2024, as the economy gradually moves towards stability and inflation issues are alleviated, continuous
advancements in technical specifications and the integration of AI technology are making the use scenarios of
gaming notebooks more user-friendly, expected to boost demand growth. Despite the economic downturn
previously, gaming notebook shipments still reached 24 million units in 2023, indicating that gamers' passion for
esports maintains a strong demand for gaming notebooks. According to IDC statistics, gaming notebooks
accounted for about 13% of the global notebook market in 2023.
■ 2-in-1 Notebooks
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With continuous improvements in the supply chain, the cost and price of 2-in-1 notebooks have significantly
decreased. Coupled with the digital transformation trend, 2-in-1 notebooks with versatile use scenarios are
gradually gaining widespread acceptance among consumers. According to IDC data, global shipments of 2-in-1
notebooks reached 85 million units in 2023. It is anticipated that in 2024, as brands continue to launch more
diversified products and integrate new technologies such as 5G and AI, the application scope of 2-in-1 notebooks
will broaden, which is expected to generate more business opportunities.
■ All-in-one (AIO)
As the economy gradually recovers and technological trends evolve, the global AIO market is experiencing steady
growth. According to IDC statistics, AIO shipments reached 8.7 million units in 2023, and are expected to exceed
9 million units in 2024, outpacing the growth of traditional desktops. Compal will continue to cultivate this market,
committed to meeting consumers' demands for high performance and integrated design.
■ 5G Module, 5G User Equipment, 5G Small Cell, 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, 5G O-RAN, and private network application market, Compal actively invests in the development of 5G
small cell, 5G O-RAN, and private network solutions. Compal deeply integrates and cooperates with various
operators and industry partners, and has officially become 5G small cell equipment, 5G O-RAN, and private
network solution provider.
■ Tablets
In 2023, global shipment volumes significantly declined due to global inflation and slowing consumer spending.
Looking ahead, with the gradual economic recovery, the tablet market is expected to experience a rebound in
2024, characterized by three trends: enlarged screen sizes, increased prices and performance, and integration of
AI generated content. Compal will also focus on larger screen sizes and the integration of AI technology, combined
with 4G/5G communication technology, to enter the mid/high-end tablet market.
■ Smartphones
According to IDC's, as the final market demand is still weak, the increase in shipments due to competition from
major manufacturers has pushed up channel inventories. In addition, as government subsidies have reduced and
suppliers have reduced production capacity to reduce losses, component costs have gradually increased. In the
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first half of 2024, the shipments of the global smartphone industry will tend to be conservative. From the
perspective of industrial structure, as high-end market demand gradually returns to rationality, the growth of 5G
mobile phones is lower than expected and manufacturers focus on the development of low-end products. In the
future, the proportion of design outsourcing is likely to remain fourth among global smartphones in the fourth
quarter of 2023. The proportion of success. Compal maintains a stable mobile phone sales forecast and actively
explores more opportunities.
■ Smart Wearable Devices
IDC predicts that smartwatches will continue to grow 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 products or accessories of smartphones and smartwatches.
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 consumer LCD TV market in 2024 is still digesting the over-
sales during the epidemic, which has led to weak demand in the past two years, and panel manufacturers have
made production adjustments and control. The market is expected to remain flat or slightly decline. In addition
to continuing to operate the consumer market for the development of smart display products, Compal will focus
more on developing and operating commercial and specific-purpose market demand in the future.
■ Smart Home Devices
The smart home market size has rapidly expanded in recent years, reaching $107.5 billion in 2023 and is expected
to grow to $129.5 billion in 2024. Advances in voice assistant technology, increasing demand for security
monitoring, and home automation to improve energy efficiency are all driving factors behind the growth of the
smart home market. Additionally, the exacerbation of aging populations has led to the maturity of technologies
such as fall detection systems, remote health monitoring, voice control, and automatic safety features, which are
expected to further propel the development of the smart home market.
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.
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■ AR Vertical Solutions
According to IDC's forecast for the fourth quarter of 2023, AR device shipments are expected to reach 800,000
units in 2024, representing a 60% growth compared to 2023. By 2025, AR device shipments are projected to reach
1.6 million units, indicating robust market demand.
In the future, the augmented reality (AR) market is expected to demonstrate strong supply-demand dynamics and
continued growth. Increased acceptance of AR technology by consumers and businesses is driving demand growth
for AR gaming, social media applications, virtual try-on experiences, and shopping experiences. Additionally,
widespread applications of AR technology in education, training, healthcare, and industrial sectors further propel
the increase in market demand. The diverse application needs across different industries will bring more potential
customers and business opportunities to the AR market.
Continuous advancements and innovations in AR technology drive market supply. As technologies such as
perception, display, and interaction mature, AR products will become more advanced, feature-rich, and offer
superior user experiences, enhancing market attractiveness and competitiveness. The proliferation of smart
wearable devices such as smart glasses will provide more consumers with opportunities to experience and use AR
technology, expanding the user base and driving market growth.
The future AR market is expected to achieve a balance between supply and demand, with ample supply and
sustained growth. As technology continues to develop and the market matures further, the AR market will bring
more innovative applications and value to consumers and businesses, becoming a promising high-growth market.
■ 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 a CAGR of 5.6%.
■ Automotive electronics (AE)
IHS estimates global light vehicle production in 2024 will reach 88.3 million units, up 2.8% YoY from 86 million in
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2023.
■ Server
IDC statistics show that the demand for x86 servers was 14.80 million pieces in 2023 and will reach 15.53 million
pieces in 2024. 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 92.65% of the shipping volume.
As the frame-type server has a higher market share, we have actively engaged in the server market. In addition, AI
Sever demand has significantly increased, and Compal has actively participated in more diversified server market.
4. Competitive advantage:
Compal has a long-time investment in the Information and Communication Technology (ICT) industry and has
committed to its role as an ODM. The following is a description of our competitive advantages in terms of R&D
and mass production capacity:
■ Notebooks
The Company has been manufacturing notebooks since 1989 and is one of the most experienced notebook
manufacturers in Taiwan. Products designed by the Company have won many Editor's Choice awards from
renowned magazines worldwide as well as awards from the Taiwan External Trade Development Council.
Furthermore, our design team has great sensitivity and responds to market changes with new commercialized
products. To enhance product competitiveness, Compal has assembled an R&D team that specializes in the
research of new materials and technologies 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 strategies 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 2024, Compal will maintain this advantage and 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 focus on integrating AI and various sensing technologies to enhance user experience and personalization,
concentrating on developing the next generation of gaming notebooks designed to meet the needs of various
gamers in 2024.
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■ 2-in-1 Notebooks
Compal has extensive experience in the development and manufacture of both notebooks and tablets. By adding
a bit of innovation, Compal is confident of its ability to create new demand for these products.
■ All-in-one (AIO)
Compal possesses the advantage and ability to commercialize products quickly in this respect. To further
emphasize product differentiation, a resolute software development team has been assembled to carry out
software development and human-machine interface integration, to make the products more suitable for
consumer needs.
■ 5G Module, 5G User Equipment
Compal has had long-term communication technology development for more than 20 years and has involved itself
in the evolution of global communications standards (2/3/4/5G/B5G). 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 include 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, as well as the carrier
certification by request.
■ 5G Small Cell, 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 been 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.
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 will continue to integrate new technologies, including AI and environmentally friendly design, to optimize
product specifications, performance, and user experience, offering products for various applications such as
gaming, entertainment, business, and education. Additionally, Compal will actively apply 4G/LTE/5G
communication technologies, commonly used in smartphones, to tablets to meet users' needs for Internet
connectivity from anywhere.
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■ 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 the
development of innovative technology. Compal currently offers an extensive range of products, and leads the
industry in many advanced technologies, including video, audio, wireless, and wearable materials.
■ Smart Hearable Devices
Compal has years of experience in acoustic, wireless communication, and 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 will continuously adjust the resource allocation between production bases and supply chains, deepen the
strategic partnership with customers and manufacturers, develop the latest smart TV platform, integrate large-
size touch, ultra high brightness backlight, transparent OLED and state-of-art technologies, improve the
competition threshold, and strive to meet the needs of consumer, commercial and specific-purpose markets at
the same time.
■ AR/VR Smart Devices
Compal has joint technology development cooperation with strategic partners, and provides the latest XR
hardware platform, eye tracking, spatial perception, and reference design based on ergonomic engineering
considerations. It provides highly customized product design services to meet the needs of commercial customers.
■ Smart Home Devices
A smart home encompasses a variety of interconnected and intelligently automated household electronic devices,
including appliances, entertainment, communication, health care, and security products. Leveraging its existing
engineering expertise in the computer and communication industries, as well as firmware design capabilities,
Compal can assist customers in building a smart appliances ecosystem in addition to smart speaker products.
Through communication modules and optical modules, Compal provides customers with comprehensive hardware
and software solutions and customized applications to better meet market expectations.
■ AR Vertical Solutions
Compal will continue to leverage its past research and design capabilities in notebook computers and wearable
devices, employing a modular concept to design products with different specifications for various fields, providing
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customers with comprehensive solutions. Furthermore, in specialized industrial solutions, Compal will develop
dedicated AR solutions tailored to specific industries or application scenarios; by integrating AR technology with
other related technologies or services, Compal can offer more comprehensive and valuable solutions.
Simultaneously, Compal will focus on delivering high-quality user experiences and designs, making products easy
to use, intuitive, and attractive. The success of AR technology often depends on user experience, so focusing on
user experience and design can become Compal's competitive advantage. Additionally, considering the
development of AR applications that can run on different platforms and devices, providing cross-platform and
cross-device support can expand the user base, increasing product accessibility and usability.
By collaborating with other industries to seek innovative application scenarios and business models, Compal can
help attract more users and customers for enterprises, expand business models, etc., establishing its own
competitive advantage in AR and achieving success in the market.
■ Smart medical and healthcare
Compal will leverage its existing ITC capabilities and cloud platform to explore cross-industry alliances and
opportunities to satisfy customer needs with diverse products and services.
■ Automotive electronics (AE)
Under megatrends in automotive: Electrification, connectivity, ADAS/AD, we strive to prosper our existing
business by concurrent engineering with customers to achieve cost competitiveness and 0 ppm quality in IVI
systems and ICT solutions, and leverage core technologies and experiences to new products to explore new
business opportunities.
■ Servers
Compal has many years of experience in the design and manufacturing of computers, and this has helped us enter
the server industry. Compal's existing business relationships with world leading server manufacturers also work in
our favor. Also, we need to invest more in designing more AI servers to enrich our server product line.
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.
• As Microsoft is expected to end support for the Windows 10 operating system by 2025, the demand for
computer replacements is anticipated to gradually increase over time.
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•
Innovate new products and work with worldwide leading companies to lead the new product development
and market directions.
• The expansion of software development, aesthetic design, and human-machine interface talent has improved
the ergonomics of Compal products, which adds 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.
• Compal remains active in developing innovative technologies and exploring new product concepts. The
Company collaborates with 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 the growing demand for wearable devices, Compal continues to mass-produce products and develop
new proposals and innovations with major customers, continuing to maintain its 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 Chinese manufacturers.
• With the flourishing growth of global 5G communication, Compal collaborates and integrates 5G
communication capabilities with internal and external corporate partners, and launches a variety of 5G
applications.
•
Integration of holographic 3D streaming media, 5G communication technology, and artificial intelligence (AI)
empowers AR/VR products.
• Actively apply for audio and voice analysis patents to enhance global patent deployment.
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• Enhance artificial intelligence (AI) technology as the foundation of the next generation of smart devices.
• With the continuous improvement of sensing technology, display technology, and computing power, as well as
the reduction in hardware costs, the proliferation of AR technology will benefit. Response Strategy: Enterprises
should closely monitor technology development trends and actively invest in research and innovation to
maintain product competitiveness.
■ Threats
• Amidst unresolved inflation, persistently high interest rates, and ongoing geopolitical conflicts, global economic
growth faces significant challenges, warranting caution against potential crises.
• With the United States intensifying restrictions on the expansion of China's supply chain, operators in Taiwan's
notebook industry must proactively adjust their strategies. The competitive advantage is shifting from
specialization to vertical integration, which not only raises investment costs and expands market scope but also
adds complexity to business operations. Faced with the rise of the Chinese supply chain, Taiwanese notebook
manufacturers must promptly enhance their capabilities in design, development, and assembly to maintain
their competitive edge in the global market.
• The notebook is a highly mature product and requires more diverse, value-adding, and innovative features to
differentiate it from other market participants.
•
Intense competition in the IoT market can give rise to inconsistent quality and make competition in the industry
more difficult.
• Ongoing price competition among smartphones has a significant impact on large-brand customers.
• Overall demand for tablets has declined, which adds to the competitive pressure.
• Wearable devices are still in the early stages of development and require sustained periods of expansion to
reach an economy of scale.
• 5G is distributed in various domains, many industries are in the POC stage, and 5G innovative new business
model is still under development.
• 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
talent recruiting more difficult.
• The widespread adoption of AR technology may be hindered by insufficient user education and acceptance.
Users may lack understanding and trust in AR technology.
• Compal closely monitors the favorable and unfavorable factors affecting the development of AR technology
and takes corresponding measures to address challenges, seize opportunities, and promote the healthy
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development of AR technology.
■ Strategies
• The Company will adopt strategies that focus primarily on innovation, product added value, and service.
•
Increase research and development investment, actively seek technological innovation points, and improve
product performance and functionality.
• The use of land and human resources in emerging countries throughout the world will be optimized to reduce
the cost of production and basic R&D.
• We will enhance the product design review process and develop a comprehensive database of documents to
improve design efficiency and quality while reducing costs.
• Deeply understand market demands, develop diversified products and services to meet the needs of different
customers.
• Strengthen cooperation with various industries, develop industry-specific solutions, and provide customized
products and services.
• Provide cross-platform and cross-device support, develop AR applications that can run on different smart
wearable devices.
• New customers and new product lines will be explored in emerging markets.
• We will launch ultraslim notebooks that integrate 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 to replace 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.
• We will develop more AR/VR solutions and collaborate with domain partners, to create market penetration,
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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 Microsoft Windows 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 touchscreen input interface,
a range of software applications and high computing power.
■ Smart Home Devices
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Smart appliances, controls and sensors 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.
■ AR Vertical Solutions
AR technology can combine the virtual world with the real world, providing users with a richer experience.
‧
‧
It can be used in the education and training fields, presenting interactive maps, virtual laboratories, etc., in
AR format, which can enhance learners' interest and engagement, promoting learning and understanding.
It can realize functions such as virtual try-on and virtual home decoration, helping consumers understand
the styles and layout effects of products more intuitively, thereby enhancing the enjoyment and satisfaction
of purchases.
‧
It can achieve functions such as real-time navigation and augmented reality navigation, helping users find
destinations more accurately, obtain surrounding information, etc., thereby improving travel efficiency and
convenience.
Compal, through the demand analysis phase, needs to clearly understand the product's purpose, target users,
functional requirements, etc., and design the product's functional framework and user interface according to the
requirements; during the development phase, software coding is carried out based on the requirements to realize
the product's functionality and interface design, and the most suitable solution is feedback and suggested based
on past product experience. A series of tests are conducted to prevent potential issues and optimize to ensure
product stability and user experience.
Compal continues to communicate and coordinate with customers to ensure that the product meets their needs
and expectations, ultimately providing a good user experience.
■ 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
provide convenient and instant smart health care that will enhance dependence on the products and engender
user brand loyalty.
■ Automotive electronics (AE)
‧
In-Vehicle Infotainment systems
‧ Vehicle communication (4G/5G) systems
183
‧ 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. Also, we need to invest more in designing more AI servers to enrich our server
product line.
184
2. Production Process of the Main Products
■ Notebooks
185
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 Tablets
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
186
5.2.3 Supply Status of Main Materials
■ CPU/Chipset
● Notebook
The overall demand of notebooks has slowed down in 2023 due to the major laptop brands’ inventory
level remain high, coupled with the impact of inflation, which result consumer spending show a sign
of weakening. As the inventory level has gradually became healthier and the inflationary pressures are
expected to slow down, coupled with the rise of AI PC trend, it is expected the overall notebook
demand might recover in 2024 H2.
The majority of the NB CPU market is still controlled by Intel and AMD X86 solution, which accounting
for 65.5% and 22.9% respectively. Apple CPU has shown resilience in the weak NB market with the
penetration takes 10.3% in 2023. In addition, both Qualcomm and MediaTek has released ARM based
NB solution and it is estimated that ARM will account for around 15% of NB market in 2026.
In term of new products, Intel has launched 7nm Meteor Lake in 2023 Q4, which emphasis on equipped
with NPU (Neural Processing Unit) as AI accelerator. Arrow Lake is estimated to be released in 2024 Q4,
as well as Lunar Lake, which emphasizes thinness, lightness, power saving and integrates the memory
LPDDR5X into the package. AMD 4nm high-end Phoenix and Hawk Point have released in 2023 Q1 and
2024 Q1 respectively. The Strix Point is expected to launch in 2024 Q3. As major CPU manufacturers
have proposed new solution for AI computing power in 2024 H2, it is expected the notebook market
will be boosted.
●
Smartphone and Module
The Smartphone Market size is estimated at 1.51 Billion units in 2024, with a CAGR of 4% during the
period of 2023 to 2029. Driven major by emerging market economies and renewed consumer spending.
AI smartphones to be shipped in 2024, representing almost 15% of total smartphone shipments and a
sizeable jump from the roughly 51 million shipped in 2023. This share is expected to climb rapidly
beyond 2024 as the industry players push aggressively towards new silicon and use cases evolve further.
Some of the latest flagship devices with on-device with AI capabilities that are creating increased
interest and excitement in the industry. A
Global 5G Wireless Module market is projected to reach USD 794.6 million in 2029, with the CAGR of
5.6% during the period of 2023 to 2029. 5G RedCap standard with reduced performance and cost will
accelerate 5G adoption in industrial and wearable, which does not require broadband connectivity or
lower power consumption. The challenges of 5G RedCap are the module cost and network
infrastructure. Mobile operators need to invest their 5G network to support 5G RedCap, therefore it
will take a few years for mobile operators to extend 5G RedCap network in wide area.
■ Memory
●
DRAM
Regarding the outlook for market demand throughout 2024, the DRAM major manufacturers (Samsung,
187
SK Hynix, and Micron) remain cautious, currently focusing on controlling production capacity as their
primary strategy and gradually digesting inventory quarter by quarter. With the destocking trend in
notebooks and the continuous increase in average per-device DRAM capacity across various product
categories, DRAM demand is expected to improve gradually. Overall, the market shows signs of
recovery in demand, and with manufacturers keep controlling production plan, it is anticipated that
DRAM prices will continue to raise.
For DRAM application, calculated in units of 2Gbs, the actual shipment in 2023 is 100.1 Billion units,
and it is estimated to be 118.2 Billion units in 2024, with a compound annual growth rate of
approximately 18.2%. The overall capacity allocation still focuses on Server and Mobile. It is estimated
that Server will decrease from 37% to 36%, Mobile will slightly decrease from 36% to 35.3%, PC will
account for about 12%, Consumer will account for about 7.9%, and Graphics will account for about
8.8%.
In terms of DRAM processes, the major manufacturers continue to advance toward 12nm process
technology. Their capital expenditures for 2024 are estimated to increase by 3% compared to 2023.
Due to the surge in demand driven by AI server, there is increased demand for High Bandwidth Memory
(HBM). Additionally, with the market shifting toward DDR5 as the mainstream, it is estimated that the
major manufacturers will allocate some capacity from DDR4 to HBM. The supply of PC DRAM for 2024
H2 is estimated to be tight.
■ NAND flash
In 2023 H1, on the supply side, major storage manufacturers implemented aggressive production cuts to
address losses in their NAND Flash product lines. The demand side is not strong due to the global inflation and
resulted in an oversupply situation for NAND Flash. In 2023 H2, the significant impact of production cuts by
manufacturers led to a rebound in NAND Flash prices starting from 2023 Q4. The price of NAND Flash is
expected to increase or remain stable by the market situation.
In terms of NAND Flash process nodes, suppliers continue to progress towards higher stack layers. In 2023 H2,
SK Hynix announced the development of 321-layer NAND Flash and expected to produce in 2025 H1, while
Micron announced the production of NAND Flash with over 250 layers in 2024 H1 after previously achieving
232 layers. However, the pace of transitioning to higher layer may slow down due to suppliers reducing capital
expenditures.
■ Battery
In 2022, the uptrend of laptop battery prices caused by cobalt, and persisted until 2022 Q4. The demand for
electric vehicles slowed down in 2023 and electric vehicle manufacturers began shifting away from ternary
batteries (nickel-cobalt-manganese or nickel-cobalt-aluminum) to the cheaper LFP batteries. As a result of the
transformation in the electric vehicle market, laptop battery prices began to decline in 2023 and continued to
the flattened curve in 2023 Q4.
The laptop battery shipments from packers are decreasing, and more and more battery cell manufacturers
188
choose to assemble packs by themselves. The proportion of packers decreased from 72% in 2022 Q1 to 69%
in 2023 Q4, and it is estimated to further decrease to 66% by 2024. As more mainland China battery cell
manufacturers begin to assemble packs themselves, and Japanese and Korean battery manufacturers gradually
shift to power and energy storage applications, the proportion of mainland China manufacturers in the laptop
battery pack market is expected to keep increasing.
■
LCD
Affected by inflation, the demand of laptops remains weak, and PC brands are actively clearing inventory.
Interestingly, the proportion of affordable traditional non-silicon-crystal panels is increasing rather than
decreasing. However, it is expected that this trend will continue to decline year by year due to the replacement
of other high-end display technologies. OLED panels, which were previously optimistic, have not been widely
adopted due to cost and yield issues. The shipment penetration rate in 2024 is estimated to be 3.1%.
The mainstream sizes of laptop panels still remain at 14 inches and 15.6 inches. However, laptops have started
transitioning from the 16:9 aspect ratio to 16:10, and it is anticipated that the market share will reach 46.0%
in 2024 and 53.2% in 2025.
Windows 10 is going to be phased out soon, and with AI PC topic are expected to be new drivers for commercial
laptop panels. Additionally, there is a growing demand for high-end panels with high refresh rates in gaming
laptops. Those reasons could anticipated to help the panel industry recover from the downturn, and support
the notebook panel price stable.
189
5.2.4 Major Suppliers and Clients
1. Major Suppliers in the Last Two Calendar Years
2022
2023
Unit: TWD Thousands
Party
Name
Amount
Percentage of 2022
net purchases (%)
Relationship with
the issuer
Name
Amount
Percentage of 2023
net purchases (%)
Relationship with
the issuer
1
2
Company E
Company J
Others
Net Purchase
330,815,052
75,916,569
561,263,037
967,994,658
34.18
7.84
57.98
100.00
N.A.
N.A.
Company E
Company J
Others
Net Purchase
• Causes of changes: No significant change to the major suppliers reported in the last two years.
281,375,768
93,528,302
499,129,820
874,033,890
32.19
10.70
57.11
100.00
N.A.
N.A.
2. Major Clients in the Last Two Calendar Years
2022
2023
Unit: TWD Thousands
Party
1
2
3
4
Name
Amount
Percentage of 2022
net sales (%)
Company a
Company d
Company e
Company f
Others
Net sales
96,621,806
460,236,878
102,969,721
170,398,727
243,018,783
9.00
42.88
9.59
15.88
22.65
1,073,245,915
100.00
Relationship with
the issuer
N.A.
N.A.
N.A.
N.A.
Name
Amount
Percentage of
2023 net sales (%)
Relationship with
the issuer
Company a
Company d
Company e
Company f
Others
Net sales
95,644,980
379,263,553
125,647,532
121,450,902
224,707,833
10.10
40.06
13.27
12.83
23.74
946,714,800
100.00
N.A.
N.A.
N.A.
N.A.
• Causes of changes: The decrease in sales to Customer a, d, and f in the year of 2023 is mainly due to the decrease in shipments of the corresponding products which was caused by the
impact of customer demand.
190
5.2.5 Production in the Last Two Years
Year
Production
volume/
value
Main products
2022
2023
Unit: 000 Units; TWD Thousands
Production
capacity
Production
volume
Production
value
Production
capacity
Production
volume
Production value
5C electronics
152,068
112,581
1,039,628,777
132,142
95,974
895,277,898
5.2.6 Shipments and Sales in the Last Two Years
Year
Sales volume
Main products
2022
2023
Domestic sales
Value
Volume
Export sales
Volume
Value
Domestic sales
Value
Volume
Export sales
Volume
Value
5C electronics
1,100
3,047,804
110,122 1,070,198,111
966
2,955,467
95,852
943,759,333
Unit: 000 Units; TWD Thousands
5.3
Human Resources
Year
December 31, 2022
December 31, 2023
April 2, 2024
Number of employees
73,120
Average age
Average years of service
Academic
qualifications
Doctoral Degree
Master’s degree
University
High school/Below/others
29.12
2.85
0.07%
5.05%
23.93%
70.95%
58,249
29.85
3.45
0.09%
6.52%
28.93%
64.46%
56,671
30.40
3.40
0.07%
6.30%
26.85%
66.78%
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5.4
Environmental Protection Expenditure
1.
Compal is an assembler of electronic products and produces no significant pollution
The company is an information electronic product assembly plant with non-high energy consumption, high
water consumption, and a high pollution industry. In order to protect the environment, it fulfills its social
responsibilities, saves energy and reduces carbon, and reduces the impact of global warming. The Taiwan
and Mainland China plants together incurred expenses of TWD 42,209 thousand (excluding regular
maintenance and green R&D) in 2023. 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 2023, 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 our company's products comply with the limits required by the RoHS directive, and there are no
returns due to exceeding the limits.
‧ 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 cover 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,
recreational team competitions, family activities, travel, the arts, and leisure and all kinds. Group Life Insurance
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is covered by the Company and 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 2023, the Company had provided TWD 226.31 million in maternity allowances and bonuses.
There were 35 counts of employees who took parenting leave, with the right to return to work, in 2023.
■
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 into an online learning platform to further assist the competent
staff in keeping abreast of learning progress.
In 2023, 721 training sessions (both internal and external) were organized; these courses delivered 208,483
hours of training and 115,751 persons enrolled. The total training expenses were TWD 24,856,000. 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 give 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
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 the Company's
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 the 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 of the Pension Preparation Fund,
we contribute and deposit labor pension preparation funds into a dedicated account at the Bank of Taiwan per
month to protect employees’ rights. In accordance with the Labor Pension Act, we have contributed a 6%
193
pension into personal accounts 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 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 are 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 2023 and as of the date of the report published, Company did not suffer any losses due to
employment disputes: None
‧ Future plans and potential expenses: None
194
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 strategy meetings have been held to discuss
and implement 17 information security strategy topics in 2023 in response to the ever-changing information
security issues.
2.
Information security policy
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.
Identify internal and external issues of the information security management system every six months,
and confirm the needs of the stakeholder groups for the information security management system
(including the customer's requirements for information security).
‧ Backup & restore drills are executed every six months and BCP restoration drills are executed every
year to ensure the validity of the Business Continuity Plan and that it meets the system recovery goals.
‧ Annual information security incident response drills are conducted to quickly isolate and eliminate
195
threats to information security incidents, and reduce the scope and extent of impact.
‧ To boost employees’ awareness of information security, our employees are required to receive
quarterly social engineering exercises and a briefing on information security and annual training.
‧ Network and system vulnerability detection, regularly perform vulnerability scanning, and entrust a
third-party professional unit to conduct network and system penetration testing every year to verify
the information security protection and effectiveness.
‧ 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 the verification body. It gradually expanded its
scope of verification, which is tracked twice a year for internal self-audit and external impartial third-party
audit, and re-audited by external third-party every three years. Internal audit includes NIST CSF, ISO/IEC
27001:2022 and TISAX standards; The external third-party audit is conducted in accordance with the
ISO/IEC 27001:2022 standard and the customer's information security requirements. 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
an ISO27001 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 company
password policy, and adjusts the original password setting of the previous 3 generations that cannot be
reused repeatedly to 10 generations. Also, it has strengthened the identity authentication mechanism for
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. From time to time, it will, through
announcements and quarterly advocacy to enhance employee awareness of 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 started the third-party
cybersecurity network assessment in 2020, and the average score of the 2023 assessment results is 94
points, which is higher than the average score of global manufacturing companies.
■ Strengthened employees' awareness of information security
Compal provides eLearning courses and quarterly social engineering drills to simulate hackers' phishing
emails, and detect employees' information security risk awareness, supplemented by daily boot up with
196
pop-out 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 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, the validity of the training will be evaluated, and the evaluation will be logged.
Information security members participate in the information security intelligence and technology seminar
to learn about the latest information security trends and intelligence.
5.
Losses, possible impacts and responses of major information security incidents
The widespread use of computers and rapid development of the 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 2023. In response to the
government's "Cyber Security Guidelines for TWSE/TPEx-Listed Companies", Compal applied to become a
member of the Taiwan Computer Emergency Response Team / Coordination Center (TWCERT/CC) in 2022 to
improve the notification and response of cyber security incident.
5.7 Important Contracts
Agreement
Counterparty
Patent
Phoenix
licensing
Technologies
agreement
Ltd.
Period
Since
2010.1.1
Auto-renewed
upon expiry
Since
Major Contents
1. Tool Licenses
2. Source Code licenses
3. Maintenance
Under this agreement, the buyer will procure computer
products developed and manufactured by the seller,
while the seller will grant the buyer proper licenses to
use the products and provide after-sales technical
services.
Trading and
manufacturing
agreement
Dell Products
1997.06.26
L.P.
Auto-renewed
upon expiry
Trading and
manufacturing
Acer Inc.
agreement
Since 2001.10.01
Under this agreement, the buyer will procure computer
Yearly
products developed and manufactured by the seller,
Auto-renewed
along with after-sales technical services provided by the
upon expiry
seller.
197
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
Analysis
Current assets
2019
2020
2021
2022
2023
343,154,813
424,460,635
487,115,390
390,706,503
368,924,297
Property, plant, and equipment
19,972,347
22,085,340
26,990,364
28,808,211
1,553,342
1,506,101
1,548,508
1,722,165
17,967,917
18,873,622
21,441,078
32,247,554
382,648,419
466,925,698
537,095,340
453,484,433
436,770,974
255,820,033
335,524,716
402,242,095
302,384,911
277,252,062
Non-current assets
12,069,042
15,411,332
13,313,442
23,689,679
261,048,588
342,496,124
410,956,354
307,613,466
267,889,075
415,555,537
412,506,626
326,074,590
303,998,121
273,117,630
357,907,456
424,269,796
331,303,145
309,286,697
(Note 2)
105,972,633
106,832,505
111,360,265
116,294,754
119,621,995
44,071,466
44,071,466
44,071,466
44,071,466
9,159,259
8,342,813
6,724,856
5,078,580
44,071,466
4,270,915
57,726,604
62,566,181
69,651,940
69,969,059
72,548,155
Other equity interests
(4,103,449)
(7,266,708)
(8,206,750)
(1,943,104)
53,319,457
57,277,605
62,600,505
65,561,912
(881,247)
8,786,711
(881,247)
9,157,145
(881,247)
(881,247)
10,179,538
11,115,089
13,150,858
114,759,344
115,989,650
121,539,803
127,409,843
132,772,853
109,530,789
109,018,242
112,825,544
122,181,288
127,544,298
(Note 2)
Note: 1. The financial information is audited and certified by the CPA every year.
2. The amounts are approved by the Board of Directors meeting on February 29, 2024.
198
Intangible assets
Other assets
Total assets
Prior to
Current liabilities
distribution
After
distribution
Total liabilities
Prior to
distribution
After
distribution
Equity attributable to parent
company shareholders
Ordinary shares
Capital reserves
Retained earnings
Prior to
distribution
After
distribution
Treasury stock
Non-controlling interests
Total equity
Prior to
distribution
After
distribution
29,040,525
1,462,162
37,343,990
282,540,638
(Note 2)
26,746,059
68,141,008
(Note 2)
(387,294)
(881,247)
▓ Consolidated Condensed Statement of Comprehensive Income
Year
Financial Summary for The Last Five Years (Note)
Unit: TWD Thousands
Analysis
Net sales revenue
Gross profit
2019
2020
2021
2022
2023
980,442,346
1,048,929,251
1,235,682,015
1,073,245,915
946,714,800
33,908,828
35,458,522
41,491,574
40,364,179
42,396,894
Net operating income
10,586,368
11,492,545
13,348,593
Non-operating income and expense
(578,492)
1,630,171
4,119,242
9,218,997
1,505,133
12,047,711
(157,286)
Net income before taxes
10,007,876
13,122,716
17,467,835
10,724,130
11,890,425
Net income from continuing
operations
Net loss from discounting
operations
Net income (loss)
Income (Loss) from Other
7,895,719
10,409,512
13,740,488
8,541,527
9,130,678
-
-
-
-
-
7,895,719
10,409,512
13,740,488
8,541,527
9,130,678
comprehensive income (loss)
(1,534,980)
(3,341,346)
(1,237,908)
6,535,651
898,965
(net after tax)
Comprehensive income
Net income attributes to
shareholders of the Parent
Net income attributes to non-
controlling interests
Comprehensive income attributed
to owners of parent
Comprehensive income attributed
to non-controlling interests
Earnings per share
(unit: dollar)
6,360,739
7,068,166
12,502,580
15,077,178
10,029,643
6,955,899
9,361,893
12,632,667
7,288,292
7,667,627
939,820
1,047,619
1,107,821
1,253,235
1,463,051
5,456,508
6,083,542
11,445,530
13,636,212
8,558,794
904,231
984,624
1,057,050
1,440,966
1,470,849
1.60
2,15
2.90
1.67
1.76
Note: The financial information is audited and certified by the CPA every year.
199
Other assets
Total assets
Current
liabilities
Prior to
distribution
After
distribution
Total liabilities
Ordinary shares
Capital reserves
Retained
earnings
Prior to
distribution
After
distribution
Prior to
distribution
After
distribution
▓ Parent-Company-Only Condensed Balance Sheet
Year
Analysis
Financial Summary for The Last Five Years (Note 1)
Unit: TWD Thousands
2019
2020
2021
2022
2023
Current assets
245,522,829
296,383,073
348,914,103
271,829,340
Property, plant, and equipment
2,620,638
2,604,893
2,484,963
2,417,309
259,853,419
2,234,288
Intangible assets
438,334
436,548
431,936
529,906
349,922
89,201,687
89,526,637
95,517,212
104,756,856
115,856,133
337,783,488
388,951,151
447,348,214
379,533,411
378,293,762
220,871,943
268,466,052
324,236,031
248,511,419
242,274,702
Non-current assets
10,938,912
13,652,594
11,751,918
14,727,238
226,160,519
275,517,487
333,050,325
253,799,995
247,563,278
(Note 2)
16,397,065
231,810,855
282,118,646
335,987,949
263,238,657
258,671,767
237,099,431
289,170,081
344,802,243
268,527,233
44,071,466
44,071,466
44,071,466
44,071,466
9,159,259
8,342,813
6,724,856
5,078,580
263,960,343
(Note 2)
44,071,466
4,270,915
57,726,604
62,566,181
69,651,940
69,969,059
72,548,155
53,319,457
57,277,605
62,600,505
65,561,912
68,141,008
(Note 2)
(387,294)
(881,247)
Other equity interests
(4,103,449)
(7,266,708)
(8,206,750)
(1,943,104)
Treasury stock
(881,247)
(881,247)
(881,247)
(881,247)
Total equity
Prior to
distribution
After
distribution
105,972,633
106,832,505
111,360,265
116,294,754
119,621,995
100,744,078
99,861,097
102,646,006
111,066,199
114,393,440
(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 February 29, 2024.
200
▓ Parent-Company-Only Condensed Statement of Comprehensive Income
Year
Financial Summary for The Last Five Years (Note)
Unit: TWD Thousands
Analysis
Net sales revenue
Gross profit
Net operating income
Non-operating income and
expense
2019
2020
2021
2022
2023
916,280,028
991,279,270
1,171,613,858
1,003,642,791
874,914,215
24,849,149
8,536,952
23,218,044
6,079,726
27,904,355
7,578,392
28,567,835
7,262,023
28,050,066
7,327,971
(713,273)
4,347,551
6,864,576
771,589
1,381,729
Net income before taxes
7,823,679
10,427,277
14,442,968
8,033,612
8,709,700
Net income from
continuing operations
Net loss from discounting
operations
6,955,899
9,361,893
12,632,667
7,288,292
7,667,627
-
-
-
-
-
Net income (loss)
6,955,899
9,361,893
12,632,667
7,288,292
7,667,627
Income (loss) from other
comprehensive income
(1,499,391)
(3,278,351)
(1,187,137)
6,347,920
891,167
(net after tax)
Comprehensive income
5,456,508
6,083,542
11,445,530
13,636,212
8,558,794
Earnings per share
(unit: dollar)
1.60
2.15
2.90
1.67
1.76
Note: The financial information is audited and certified by the CPA every year.
▓ Auditors’ Opinions
Year
2019
2020
2021
2022
2023
Accounting Firm
CPA
KPMG
KPMG
KPMG
KPMG
KPMG
Chien, Szu Chuan; Au, Yiu Kwan
Chien, Szu Chuan; Au, Yiu Kwan
Kuo, Kuan Ying ; Chien, Szu Chuan
Kuo, Kuan Ying ; Chien, Szu Chuan
Kuo, Kuan Ying ; Chien, Szu Chuan
Audit Opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
Unqualified opinion
201
6.2 Five-Year Financial Analysis
▓
Consolidated Financial Analysis
Year
Financial Analysis for the Last Five Years
Analysis
2019
2020
2021
2022
2023
Debt ratio
70.01
75.16
77.37
71.90
69.60
Capital Structure (%)
Long term fund to property, plants, and
equipment ratio
Current ratio (%)
Liquidity analysis
Quick ratio (%)
Operating
Performance
Analysis
Profitability 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 (%)
Operating income to paid-in capital ratio
(%)
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.
635.02
594.97
499.63
524.50
549.30
134.14
102.94
4.67
4.96
73.58
12.01
6.34
30.39
126.51
121.10
129.21
133.06
97.39
12.42
4.95
73.73
11.61
5.89
31.43
92.13
17.65
4.73
77.16
11.31
5.64
32.27
91.61
98.18
4.30
4.46
3.35
4.92
81.83
74.18
9.12
5.35
8.75
5.64
40.02
41.71
48.55
49.88
50.36
38.47
32.73
2.51
2.57
6.93
2.47
2.67
9.02
2.46
2.90
11.57
2.17
2.25
6.86
2.13
2.92
7.02
22.71
29.78
39.64
24.33
26.98
0.81
1.60
8.18
37.92
9.89
1.61
1.35
0.99
2.15
4.25
35.94
5.48
1.54
1.11
1.11
2.90
(Note1)
27.41
(Note1)
1.52
1.09
0.80
0.96
1.67
19.39
81.74
27.65
1.82
1.54
1.76
10.70
115.31
12.84
1.65
1.72
Cash flow ratio: Mainly due to the decrease in net cash inflow from operating activities compared to the earlier period.
Interest coverage ratio: Mainly due to the increase in interest expenses for the current period.
Return on assets and net profit margin: Mainly due to the increase in current period earnings.
2. The financial ratio has changed by up to 20% in the past two years:
‧
‧
‧
‧
‧
‧
3. The financial information is audited and certified by the CPA every year.
Financial leverage: primarily due to an increase in long-term investments.
Cash Flow Adequacy Ratio: Mainly due to the decrease in net cash flow from operating activities in the current period.
Cash reinvestment ratio: Mainly due to the increase in net cash flow from operating activities in the past five years.
202
▓ 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.
203
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.
204
▓
Parent-Company-Only Financial Analysis
Year
Financial Analysis for the Last Five Years
Analysis
Capital Structure
(%)
Debt ratio
Long term fund to property, plants,
and equipment ratio
Current ratio (%)
Liquidity analysis
Quick ratio (%)
Operating
Performance
Analysis
Interest coverage
Accounts receivable turnover (times)
Average collection turnover
Inventory turnover (times)
Accounts payable turnover (times)
Average inventory turnover days
Property, plants, and equipment
turnover (times)
Total assets turnover(times)
Return on total assets (%)
Return on equity (%)
Profitability
Operating income to paid-in capital
Analysis
ratio (%)
Net margin (%)
Earnings per share (dollar)
Cash flow ratio (%)
2019
2020
2021
2022
2023
68.63
72.53
75.11
69.36
68.38
4,461.19
4,625.34
4,954.29
5,420.16
6,087.80
111.16
110.40
107.61
109.38
88.45
4.97
4.97
73.46
17.55
5.86
20.79
89.44
15.81
4.87
75.01
18.29
5.73
19.95
88.77
21.84
4.64
78.73
19.59
5.72
18.62
87.83
4.15
4.37
83.48
17.10
5.34
21.34
107.26
85.78
3.15
4.78
76.36
16.27
5.33
22.43
385.90
379.40
460.37
409.46
376.18
2.64
2.46
6.57
2.73
2.73
8.80
2.80
3.15
11.58
2.43
2.26
6.40
2.31
2.88
6.50
17.75
23.66
32.77
18.23
19.76
0.76
1.60
6.80
0.94
2.15
1.08
2.90
(Note1)
(Note1)
0.73
1.67
22.15
0.88
1.76
6.36
Cash flow
Cash flow adequacy ratio (%)
(Note1)
(Note1)
(Note1)
55.25
130.80
Cash reinvestment ratio (%)
Leverage
Operating leverage
Financial leverage
Note: 1. The ratio is negative.
8.29
2.43
1.30
(Note1)
(Note1)
3.17
1.13
2.94
1.10
35.06
3.11
1.54
7.42
3.19
2.24
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 increase in interest expense compared to the earlier period.
˙Net margin: Mainly due to the increase in net income compared to the earlier period.
˙Cash flow ratio: Mainly due to the decrease in net cash inflow from operating activities compared to the earlier period.
˙Cash flow adequacy ratio: Mainly due to the increase in most recent 5-year Cash flow from operating activities compared to the
earlier period.
˙Cash reinvestment ratio: Mainly due to the decrease 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.
205
▓ 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.
206
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.
207
6.3
Audit Committee’s Report for the Most Recent Year
Audit Committee’s Review Report
The Company’s 2023 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 2023 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. 2024 Annual General Shareholders’ Meeting
Chairman of the Audit Committee: Min Chih Hsuan
March 20, 2024
208
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 2023 to the publication date
of this annual report: None.
209
VII. Review of Financial Conditions, Financial Performance, and Risk
Management
7.1
Analysis of Financial Status
Year
Analysis
Current Assets
Investments accounted for using the
equity method
Property, plant and equipment
Other Assets
Total Assets
Current Liabilities
Other Liabilities
Total Liabilities
Ordinary Share
Capital surplus
Retained Earnings
Other Equity Interests
Treasury stock
Non-controlling Equity
Total Equity
2023
2022
Unit: TWD Thousands
Difference
Amount
%
368,924,297
390,706,503
(21,782,206)
7,448,351
8,047,569
(599,218)
29,040,525
31,357,801
436,770,974
277,252,062
26,746,059
28,808,211
232,314
25,922,150
5,435,651
453,484,433
(16,713,459)
302,384,911
(25,132,849)
23,689,679
3,056,380
303,998,121
326,074,590
(22,076,469)
44,071,466
-
5,078,580
(807,665)
69,969,059
(1,943,104)
(881,247)
2,579,096
1,555,810
-
2,035,769
5,363,010
13,150,858
11,115,089
132,772,853
127,409,843
44,071,466
4,270,915
72,548,155
(387,294)
(881,247)
(5.58)
(7.45)
0.81
20.97
(3.69)
(8.31)
12.90
(6.77)
-
(15.90)
3.69
(80.07)
-
18.32
4.21
Note: Analysis of variations exceeding 20% and amounting to more than NTD10 million:
Increase in other assets: Mainly due to the increase in the financial assets measured at fair value through profit or loss - non-current
and deferred income tax assets.
Increase in other equity interests: Mainly due to the increase in unrealized gains or losses on financial assets measured at fair value
through other comprehensive income.
■ Effect of changes on the Company’s financial position and Future response actions:
Judging from the aforementioned causes, the effect of changes on the Company’s financial position in the last
two years are normal outcomes from standard operating activities.
210
7.2 Analysis of Financial Performance
Analysis
Net Sales
Cost of Sales
Gross Profit
Operating Expenses
Operating Income
Year
2023
2022
Unit: TWD Thousands
Difference
Amount
%
946,714,800
1,073,245,915
(126,531,115)
904,317,906
1,032,881,736
(128,563,830)
42,396,894
40,364,179
2,032,715
30,349,183
31,145,182
(795,999)
12,047,711
9,218,997
2,828,714
(11.79)
(12.45)
5.04
(2.56)
30.68
Non-operating Income and Expenses
(157,286)
1,505,133
(1,662,419)
(110.45)
Profit Before Tax
Less: Income Tax Expense
Net Profit (loss)
11,890,425
10,724,130
1,166,295
2,759,747
9,130,678
2,182,603
8,541,527
577,144
589,151
Other Comprehensive Income (after tax)
898,965
6,535,651
(5,636,686)
Total Comprehensive Income
10,029,643
15,077,178
(5,047,535)
10.88
26.44
6.90
(86.25)
(33.48)
Note: Analysis of variations exceeding 20%:
Increase in net profit: Mainly due to the increase in gross profit from operating activities in the current period.
Decrease in no-operation income & expenses: Mainly due to the increase in interest expenses.
Increase in income tax expense: Mainly due to an increase in operating income..
Other comprehensive income and total comprehensive income for the period decreased: mainly due to changes in the translation
differences of financial statements of foreign operating entities.
■ 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
The global inflation pressure and geopolitical issues continue to develop in 2024. Although market research
institutions are looking forward to a recovery of the industry in 2024, their estimates are relatively
conservative. The expectation of an economic soft landing indicates that there are still significant challenges
and uncertainties in the market development this year. Our company faces a rapidly changing environment
and will continue to invest in innovation, talent, and execution to establish long-term competitive advantages.
Artificial Intelligence (AI), Cloud Servers, Auto Electronics, Communication, and MedTech are the five
important emerging businesses for Compal. We will continue to strategically position ourselves and steadily
move forward, serving as the pillars of growth in the mid- to long-term. For further market analysis, please
refer to page 147~152 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 operations and future investments, the Company has established relevant financial
strategies.
211
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
79,665,302
29,677,204
(36,863,026)
72,479,480
-
-
Note: 1. Other Cash Inflow (Outflow) includes the Cashflow in investing activities, financing activities, and foreign exchange
impacts.
2. Analysis of the change in 2023 cash flows:
•Net cash inflow in operating activities: Mainly due to the net changes of accounts receivable, inventory, and accounts
payables from operating activities.
•Net cash outflow in investing activities: Mainly due to the financial assets measured at fair value through profit or loss
and financial assets measured at fair value through other comprehensive income in the current period.
•Net outflow of financing activities: Mainly due to repayment of the loan and distribution of cash dividends.
3. Financing of cash deficits and liquidity analysis: There is no cash deficit situation.
7.3.2 Cash Flow Analysis for the Coming Year
The Company takes prudent planning and aims to maintain stable cash liquidity, as the cash balance at the beginning
of the year plus the net cash inflows from operating activities are adequate in meeting the Company’s investing and
financing needs.
7.4 Major Capital Expenditures
7.4.1 Major Capital Expenditures and Sources of Capital
Project
Actual or Planned
Source of Capital
Actual or Planned
Date of Completion
Total Capital
Actual or Expected Capital
Expenditure 2023
Unit: TWD Thousands
Property, plant and
equipment
Cash flow
generated from
operations and
loans
7.4.2 Expected Benefits
2023
7,169,728
7,169,728
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.
212
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, strategic investments or acquisitions, and 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 2023 consolidated loss from investment using the equity method came to approximately TWD 467
million. The reason for the loss was mainly because of the negative impact of the sluggish market or lagging
economies of scale.
3. 2024 investment plans
The long-term investment plan for 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:
213
(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 foreign currency exchange transaction
(including valuation of financial instruments)
Unit: TWD Thousands; %
2023
(345,445)
216,167
Regarding interest rates and inflation, the company will monitor interest rate changes closely and strive for the
most favorable loan rate, using 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 purchases of the Company are mainly accounted for 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 trends of the foreign currency market, and accommodates the needs
of funds and makes foreign currency exchange transactions 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”.
214
7.6.3 Future Research and Development Projects and Corresponding Budget
In addition to being committed to product innovation and improvement of computers and smart device products,
the Company regards innovative research and development as the 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,
understanding of market trends, and integration of add-on functions. 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 to whether the Company can achieve its business target and whether the existing
customers continue their cooperation with the Company. The 2024 R&D expenses are expected to be TWD 18.1
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 2023, the Company made all the necessary responses to significant changes in
international and domestic policies and regulations, without a significant impact on Company operations.
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 in the 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 which 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.
Regarding internal and external information security issues, appropriate resources should be invested, and
215
control measures should be improved to reduce risks. There were no major information security events in 2023,
nor did the leakage of confidential information affect our customers and business, and cause significant impact
to the financials.
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 established a good corporate image. As the Company scale and business
complexity have 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 been placed among 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 2023 nor was there any significant event that affected the Company's 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 the stable
development of existing businesses and move ahead of the curve in other areas with 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
216
7.6.11 Effects of, Risks Relating to, and Response to the Changes in Management: None
7.6.12 Litigation or Non-litigation Matters
(1) Inventec Corporation (“Inventec”), because of its former employees who 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 are 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 clients 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
opportunities. 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
217
VIII. Special Disclosure
8.1
Summary of Affiliated Companies (As of Dec 31, 2023)
8.1.1 Affiliated enterprises report
1. Chart
218
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% 100% Compal Mexico Electromex S.A DEC. V. 0.1% 99.9% Compal Healthcare & Technology Ltd. 100% PT GLB Biotechnology Indonesia 99% 1% Compal Electronics (Vietnam), Co., Inc. 100% Compal Electronics N. A. Inc. 100% FIPOLL Electronics (Chongqing) Co.,Ltd. 60%
219
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 Arcadyan India Private Limited. 100% Great Arch Group Ltd. 99.8% Leading Images Limited Astoria Networks Inc. Astoria Networks GmbH 31.6% 0.2% Arcadyan Technology (Vietnam) Co., Ltd. 100% Arcadyan Technology Corp. (Russia),LLC 100% 100% 100% 100% 100% Billion Sea Holding Ltd. Lucom Display Technology (Kunshan) Ltd. 16.11%
2. Backgrounds of affiliated enterprises (December 31, 2023)
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
220
Date of
establishment
1995.12.25
2018.04.13
Company name
Compal Electronics
(China) Co., Ltd.
Compal Smart
Device (Chongqing)
Co.,LTD.
FIPOLL Electronics
(Chongqing)
Co.,Ltd.
2023.10.18
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
Compal Americas
(US) Inc.
Compal Electronics
N.A. Inc.
2024.02.13
2024.02.14
Smart International
Trading Ltd.
1998.09.03
Mexcom
Technologies, LLC
Mexcom
Electronics, LLC
Big Chance
International Co.,
Ltd.
Center Mind
International Co.,
Ltd.
2011.07.22
2011.07.22
2010.01.05
2011.04.01
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
RMB 70,000
Manufacturing of auto parts and
accessories.
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 12,745
General investments
USD 2,500
USD 2,500
Sales of automotive electronic
products
Sales of automotive electronic product
USD 1
General investments
USD 1
General investments
USD 8,234
General investments
USD 90,820
General investments
USD 80,820
General investments
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.5,FengCai
Road,ZoneP,WangJia Subdistrict,
LiangJiang New District,
Chongqing, China (AirPort Secti
on of LiangLu CunTan Free Trad
e 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
2140 South Dupont Highway,
Camden, DE 19934 USA
2140 South Dupont Highway,
Camden, DE 19934 USA
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
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
221
Address
Paid-up capital Main business activities or products
Company name
Compal Investment
(Sichuan) Co., Ltd.
Compal Electronics
(Chengdu) Co., Ltd.
Date of
establishment
2011.04.01
2011.04.02
Compal
Management
(Chengdu) Co., Ltd.
2011.05.25
Prisco International
Co., Ltd.
2011.06.02
Compal Electronics
(Chongqing) Co.,
Ltd.
2011.05.26
Core Profit Holdings
Ltd.
2011.06.03
Billion Sea Holdings
Ltd.
2012.04.02
Mithera Capital Io
LP
2019.06.01
Compal Electronics
(Vietnam) Co., Ltd
2023.05.26
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
No. 6, Shenglong Street, Wuhou
District, Chengdu, Sichuan
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
B1-2 Lot (belong to Lot B1), Lien
Ha Thai (Green iP-1) Industrial
Park, Diem Dien town, Thai
Thuy District, Thai Binh
Province, Vietnam
USD 80,820
USD 80,000
USD 800
USD 10,000
USD 10,000
External investment and consultation
service
Development and production of
notebooks, tablets, digital products,
networking switches, wireless APs, and
auto electronics
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
USD 54,000
R&D, manufacturing, sales and
maintenance of notebook PCs,
computer monitors, LCD TVs, mobile
phones, tablet PCs, smart watches,
communication devices and other
electronic devices
OEM of automotive electronic
products
Compal USA
(Indiana), Inc.
2010.12.16
1 Technology Way Logansport,
Indiana 46947, USA
US$8,130
High Shine
Industrial Corp.
2007.07.04
Intelligent Universal
Enterprise Ltd.
2007.08.02
Compal (Vietnam)
Co., Ltd.
2007.10.04
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
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
222
Company name
Goal Reach
Enterprises Ltd.
Date of
establishment
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.
Compalead
Eletrônica do Brasil
Indústria e
Comércio Ltda.
Compal Electronics
India Private
Limited
Compal Electronica
da
Amazonia Ltda
COMPAL MEXICO
ELECTROMEX, S.A
DE C.V.
2004.07.02
2008.07.15
1996.05.21
2020.09.14
2024.04.27
Arcadyan
Technology
Corporation
Arcadyan
Technology N.A.
Corp.
Arcadyan Germany
Technology GmbH
Arcadyan
Technology
Corporation Korea
Arcadyan do Brasil
Ltda.
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
Address
Paid-up capital Main business activities or products
USD 12,700
General investments
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
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
USD 2,500
Production of automotive electronic
products
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 198,000
Sale of wireless networking products
GBP 50
Technical support for wireless
networking products
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
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
Avenida de los Encinos, No.
1080-A, Parque Industrial Villa
Florida, Reynosa, Tamaulipas,
C.P. 88710, México
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
223
Address
Paid-up capital Main business activities or products
Company name
Arcadyan
Technology
Australia Pty Ltd
Arcadyan
Technology
Corporation
(Russia), LLC.
Arcadyan Holding
(BVI) Corp.
Date of
establishment
2017.03.28
2020.06.02
2007.03.07
Sinoprime Global
Inc.
2004.12.29
Arcadyan
Technology
(Shanghai) Corp.
Arcadyan
Technology
(Vietnam) Co., Ltd.
2002.04.17
2019.03.26
Arch Holding (BVI)
Corp.
2007.05.24
Compal Networking
(Kunshan) Co., Ltd.
2006.06.26
Zhi-Bao Technology
Inc.
Tatung Technology
Inc.
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.
2009.08.10
2008.01.21
2018.11.22
2012.12.11
2012.02.03
2001.02.13
2009.08.19
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
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, British Virgin Islands
Building 005,No. 526 Nanbang
Road,Economic & Technical
Development Zone, Kunshan,
JiangSu, China
8F., No. 8, Sec. 2, Guangfu Rd.,
East Dist., Hsinchu City
4F., No. 70, Ruiguang Rd., Neihu
Dist., 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
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
USD 10,550
General investments
USD 12,450
Manufacturing of wireless network
products
TWD 349,800
General investments
TWD 410,000
JPY 35,000
Development and sale of digital home
electronics
Sale of digital home electronics
USD 1,200
General investments
USD 1,170
General investments
USD 12,105
Manufacturing of wireless network
products
TWD 679,381
Compal Broadband
Networks Belgium
BVBA
Compal Broadband
Networks
Netherlands B.V.
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
224
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
Address
2010.12.10
Date of
establishment
2010.12.10 No. 2-1, Wenhua Rd., Hsin-chu
Industrial Park, Hukou Shiang,
Hsin-chu County 30352, Taiwan
R.O.C.
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
No.520, Nanbang Rd., Kunshan
City, Jiangsu Province, China
2010.12.14
2010.05.07
Paid-up capital Main business activities or products
TWD 200,150
Manufacturing of electronic
components, computers and
peripherals
USD 46,882
General investments
USD 55,882
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
2023.03.27
No. 555, Xinjia Avenue, Jiashan
County, Jiaxing City, Zhejiang
Province
USD 9,000
Production of touch panels and related
components
Company name
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.
HengHao
Optoelectronics
Technology
(Zhejiang) Co., Ltd.
Mactech Inc.
2000.05.23
Ripal Optotronics
Co, Ltd.
2013.8.26
Rayonnant
Technology Co., Ltd
Compal Rayonnant
Holdings Ltd.
2010.03.23
2011.08.05
Allied Power
Holding Corp.
2005.04.07
Primetek
Enterprises Ltd.
2005.01.28
2010.03.31
Rayonnant
Technology
Holdings (HK) Co.,
Ltd.
Rayonnant
Technology
(Taicang) Co., Ltd.
Bizcom Electronics,
Inc.
Compal Europe
(Poland) Sp. z o.o.
No. 89, Land 36, Section 2,
Tanxing Road, Tanyang Village,
Tanzi District, Taichung City
2F, No. 256, Section 3,
Zhongzheng Road, Rende
District, Tainan City
No. 581, Ruiguang Road, Neihu
District, Taipei City
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
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 411,458 Manufacturing of machinery and
lighting equipment, retail sale of
machinery, and international trade
Manufacturing of home appliances and
audiovisual electronics
TWD 60,000
TWD 295,000 Manufacturing and sale of computers
USD 12,500
and peripherals
General investments
USD 21,151
General investments
USD 3,151
General investments
USD 18,000
General investments
2010.06.04
178 Baihua South Road, Shaxi
Town, 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
USD 100
PLN 6,804
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
225
Company name
CGS Technology
(Poland)
Sp. z o.o.
Auscom
Engineering Inc.
Flight Global
Holding Inc.
Date of
establishment
2020.09.15
2008.10.27
2007.08.09
Compalead
Electronics B.V.
General Life
Biotechnology Co.,
Ltd.
PT GLB
Biotechnology
Indonesia
2014.02.19
1999.01.16
2023.09.12
Etrade
Management Co.,
Ltd.
Compal
Communications
(Nanjing) Co., Ltd.
Compal Digital
Communications
(Nanjing) Co., Ltd.
2000.07.05
2003.09.23
2004.03.26
Compal Wireless
Communications
(Nanjing) Co., Ltd.
Webtek Technology
Co., Ltd.
2006.02.13
2000.07.07
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
Address
Paid-up capital Main business activities or products
Jędrzejowska 85
93-636, Łódź, Poland
PLN 12,296
Maintenance and after-sale service of
notebooks and cellphones
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
Basisweg 10, 1043 AP
Amsterdam, The Netherlands
No.581-1, Ruiguang Rd., Neihu
Dist., Taipei City
Jalan Denpasar Raya Blok C4
nomor 24, Desa/Kelurahan
Kuningan
Timur, Kec. Setiabudi, Kota
Adm. Jakarta Selatan, Provinsi
DKI Jakarta,
Kode Pos: 12950
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
No.68-2, Suyuan Road, Export
Processing Zone (South Area).
Jiangning Nanjing China
No.77 Gaohu Street, Jiangning
Economic and Technological
Development Zone, Nanjing,
China
No.68-2, Suyuan Road, Export
Processing Zone (South Area).
Jiangning, Nanjing, China
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
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
226
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 2,850
Production and wholesaling of medical
equipment
USD 71,900
General investments
USD 27,000
Production of cellphones and tablets
USD 5,800
Production of cellphones and tablets
USD 49,000
Production of cellphones and tablets
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
Address
Paid-up capital Main business activities or products
TWD 200,000
TWD 100,000
Manufacturing and retail of computers
and electronic components
Sale of cellphones
USD 1
General investments
Company name
Date of
establishment
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
No. 581, Ruiguang Road, Neihu
District, Taipei City
8F, No. 385, Yangguang St.,
Neihu District, Taipei City
Coastal Building, Wickham’s Cay
II, P.O. Box 2221, Road Town,
Tortola, VG 1110, British Virgin
Islands
1F, No. 50, Section 1, Jiuzong
Road, Neihu District, Taipei city
1361 EL Camino Real, Santa
Clara, CA 95050, USA
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 200,000
USD 1,605
TWD 100,000
SHENNONA CO.,
LTD.
2019.03.21
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 20,000
Aco Healthcare
Co.,Ltd.
2019.02.20
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 73,948
Management consultation, leasing, and
wholesale/retail of medical equipment
Medical care IoT business
Management consultation, leasing,
wholesale/retail of Precision
Instruments and International Trade
Management consultation, leasing,
wholesale/retail of Precision
Instruments and International Trade
Wholesale/retail of Computer
Software, Software Design Services,
Data Processing Services, Electrical
Machinery, Supplies Manufacturing,
wholesale/retail of Electronic
Materials, wholesale/retail of Precision
Instruments, Product Designing,
Biotechnology Services and
International Trade
Research and development and sales
of MEMS microphone technology
products
Real estate development leasing and
related management business
2021.04.21
6, No. 10, Taiyuan 1st Street,
Zhubei City, Hsinchu County
TWD 100,000
2021.12.21
No. 581 &581-1, Ruiguang
Road, Neihu District, Taipei City
TWD 5,750,000
Starmems
Semiconductor
Corp.
Kinpo&Compal
Group Assets
Development
Corporation
Compal Ruifang
Health Assets
Development
Corporation
Compal Healthcare
& Technology Ltd.
2022.06.24
7F., No. 669, Zhongzheng Rd.,
Xinzhuang Dist., New Taipei
City
TWD 300,000
Investment and development of public
construction and specific areas, etc.
2023.12.11
No. 581-1, Ruiguang Road,
Neihu District, Taipei City
TWD 20,000
Information software service industry,
capital Material handling services,
electronics Information supply service
industry
Sales of computers and peripherals
TWD 210,000
TWD 41,000
Investment and holding
GPB 300
Sales of computers and peripherals
POINDUS SYSTEMS
CORP.
Poindus Investment
Corp.
Poindus Systems UK
Limited
2009.06.15
2009.07.21
2015.11.1
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
227
Company name
Adasys GmbH
Elektronische
Komponenten
QIJIE
ELECTRONICS(SHEN
ZHEN)CO.,LTD
Poindus Systems
GmbH
Date of
establishment
1994.03.29
Address
Paid-up capital Main business activities or products
Max-Planck-Strasse 10
70806 Kornwestheim
EUR 100
Sales of computers and peripherals
2019.01.25
2009.09.23
10G, Jindacheng Building,
Zhongxin Road, Xinqiao Street,
Bao'an District, Shenzhen City.
Max-Planck-Strasse 10
70806 Kornwestheim
USD 1000
Sales of computers and peripherals
EUR 25
Sales of computers and peripherals
3. Business activities and relationships of affiliated enterprises (December 31, 2023)
Industry
category
Investment
holding
company
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Compal International Holding Co., Ltd.
Compal International Holding (HK)
Limited
Jenpal International Ltd.
Fortune Way Technology Corp.
Just International Ltd.
Compal Display Holding (HK) Limited
Compal Investment (Jiangsu) Co., Ltd.
Compal Electronics International Ltd.
Mexcom Technologies, LLC
Mexcom Electronics, LLC
Big Chance International Co., Ltd.
Center Mind International Co., Ltd.
Compal Investment (Sichuan) Co., Ltd.
Prisco International Co., Ltd.
Core Profit Holdings Ltd.
Billion Sea Holdings Ltd.
Mithera Capital Io LP
High Shine Industrial Corp.
Intelligent Universal Enterprise Ltd.
Goal Reach Enterprises Ltd.
Panpal Technology Corporation
Gempal Technology Co., Ltd.
Hong Ji Capital Co., Ltd.
Hong Jin Investment Co., Ltd.
Compal Rayonnant Holdings Ltd.
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.,
Mexcom Technologies, LLC, and Mexcom Electronics, LLC
General investments
General investments
Holds investment interest in Center Mind International Co., Ltd. and
Prisco International Co., Ltd.
Holds investment interest in Compal Investment (Sichuan) Co., Ltd.
Holds investment interest in Compal Electronics (Chengdu) Co., Ltd.
and Compal Management (Chengdu) Co., Ltd.
Holds investment interest in Compal Electronics (Chongqing) Co., Ltd.
Holds investment interest in Billion Sea Holdings Ltd.
Holds investment interest in High Shine Industrial Corp., Mithera
Capital Io LP., and Compal USA (Indiana), Inc.
General investments
Holds investment interest in Intelligent Universal Enterprise Ltd. and
Goal Reach Enterprises Ltd.
Holds investment interest in Compal (Vietnam) Co., Ltd.
Holds investment interest in Compal Development and Management
(Vietnam) Co., Ltd.
General investments
General investments
General investments
General investments
General investments
228
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Electronic
products
wholesaling
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
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.
Development and sale of digital home electronics
Tatung Technology Inc.
Sale of digital home electronics
Tatung Technology of Japan Co., Ltd.
Sale and technical support of wireless networking products
Arcadyan Germany Technology GmbH
Sale of wireless networking products
Arcadyan Technology Corporation
(Russia), LLC.
Arcadyan India Private Limited
Compal Broadband Networks Belgium
BVBA
Compal Broadband Networks
Netherlands B.V.
Aco Healthcare Co.,Ltd.
Starmems Semiconductor Corp.
Compal Americas (US) Inc.
Compal Electronics N.A. Inc.
Sale of wireless networking products
Import and export of broadband networking products and related
components, and provision of technical support and consultation
services
Import and export of broadband networking products and related
components, and provision of technical support and consultation
services
wholesale/retail of Computer Software, Software Design Services,
Data Processing Services, Electrical Machinery, Supplies
Manufacturing, wholesale/retail of Electronic Materials,
Wholesale/retail of Precision Instruments, Product Designing,
Biotechnology Services, International Trade
Research and development and sales of MEMS microphone
technology products
Sales of automotive electronic products
Sales of automotive electronic products
229
Industry
category
Electronic
products
manufacturing
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Compal Electronics, Inc.
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 notebooks, cellphones and digital products
FIPOLL Electronics (Chongqing) Co.,Ltd. Manufacturing of auto parts and accessories.
Compal Optoelectronics (Kunshan) Co.,
Ltd.
Compal Display Electronics (Kunshan)
Co., Ltd.
Compal Electronics (Chengdu) Co., Ltd.
Production and sale of LCD TVs
Production and sale 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.
Mactech Co., Ltd.
components, and provision of maintenance and after-sale services
Production, development, sale and repair of notebooks, computer
monitors, LCD TVs and electronic components
Production and after-sale service of notebooks, cellphones and
electronics
Production of notebooks and electronics
Manufacturing and retail of computers and electronic components
Research, development, production and sale of WLAN, integrated
digital home and mobile office products
Development and sale of cable modems, set-top boxes and
communication products
Manufacturing of electronic components, computers and peripherals
Manufacturing of machinery and lighting equipment, retail sale of
machinery, and international trade
Manufacturing and sale of computers and peripherals
Production of cellphones and tablets
Production of cellphones and tablets
Production of cellphones and tablets
Rayonnant Technology Co., Ltd.
Compal Communications (Nanjing) Co.,
Ltd.
Compal Digital Communications (Nanjing)
Co., Ltd.
Compal Wireless Communications
(Nanjing) Co., Ltd.
RiPAL Optotronics Co., Ltd.
Compal Electronics India Private Limited Production and after-sale service of cellphones
Compal Networking (Kunshan) Co., Ltd.
Production and sale of wireless products
Arcadyan Technology (Vietnam) Co., Ltd. Production and sale of wireless products
Tatung Home Appliances (Wu Jiang) Co.,
Ltd.
HengHao Optoelectronics Technology
(Kunshan) CO., LTD
Rayonnant Technology (Taicang) Co., Ltd. Development and production of aluminum and magnesium alloy-
Manufacturing of home appliances and audiovisual electronics
Production touch panels and related components
Production and sale of digital home electronics
based products
230
Industry
category
Name of affiliated enterprise
Business relationship with other affiliated enterprises
Lucom Display Technology (Kunshan) Ltd. Productio7 panels and LCD displays
HengHao Optoelectronics Technology
(Zhejiang) Co., Ltd.
Compower Global Service Co., Ltd.
Compal Management (Chengdu) Co., Ltd. Management consultation, training, business information, tax
Production of touch panels and related components
Maintenance and after-sale service of notebooks and cellphones
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 Electronics (Vietnam) Co., Ltd
Compal USA (Indiana), Inc.
POINDUS SYSTEMS CORP.
COMPAL MEXICO ELECTROMEX, S.A DE
C.V.
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
R&D, manufacturing, sales and maintenance of notebook PCs,
computer monitors, LCD TVs, mobile phones, tablet PCs, smart
watches, communication devices and other electronic devices
OEM of automotive electronic products
Sales of computers and peripherals
Production of automotive electronic products
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
General Life Biotechnology Co., Ltd.
Manufacturing and sale of medical equipment
PT GLB Biotechnology Indonesia
Manufacturing and sale of medical equipment
Instruments and International Trade
Shennona Corporation
Medical care IoT business
Arcadyan Technology (Shanghai) Corp.
Research and sale of wireless networking products
Arcadyan Technology Limited
Technical support for wireless networking products
Compal Healthcare & Technology Ltd.
Information software service industry, capital Material handling
services, electronics Information supply service industry
231
Construction
and
development
Leasing and
management
consulting
Manufacturing
and sale of
medical
equipment
Medical care
Technical
service
4. Directors, Supervisors, and President of affiliated enterprises
December 31, 2023 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.
Compal Information
(Kunshan) Co., Ltd.
Director
Director
Director
Chairman
Director
Director
Supervisor
President
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)
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)
232
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 368,460
100.00%
TWD 368,460
100.00%
TWD 368,460
100.00%
TWD 368,460
100.00%
0
0.00%
TWD 368,460
100.00%
TWD 368,460
100.00%
TWD 368,460
100.00%
TWD 368,460
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
0
0
0.00%
0.00%
Director
Director
Director
Director
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Supervisor
Supervisor
TWD 614,100
TWD 736,920
TWD 736,920
TWD 736,920
TWD 736,920
TWD 614,100
President
Chairman
President
Chairman
Compal Digital
Technology
(Kunshan) Co., Ltd.
Compal Information
Technology
(Kunshan) Co., Ltd.
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK)
Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK)
Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK)
Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK)
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK)
Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK)
Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK)
Limited
(Representative: Chung-Pin Wong)
Compal International Holding (HK)
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Compal International Holding (HK)
Limited
(Representative: Sheng-Hsiung Hsu )
Compal International Holding (HK)
Limited
(Representative: Jui-Tsung Chen )
Compal International Holding (HK)
Limited
(Representative: Ming-Chih Chang)
Compal International Holding (HK)
Limited
(Representative: Ching-Hsiung Lu)
Ming-Chih Chang
Kunshan Botai Electronics Co., Ltd.
(Representative: Chung-Pin Wong)
Kunshan Botai Electronics Co., Ltd.
(Representative: Cheng-Chiang Wang)
Ming-Chih Chang
Compal International Holding Co., Ltd.
Prospect Fortune
(Representative: Sheng-Hsiung Hsu )
Group Ltd.
Compal International Holding Co., Ltd.
(Representative: Jui-Tsung Chen )
Compal International Holding Co., Ltd.
(Representative: Sheng-Hsiung Hsu )
Compal International Holding Co., Ltd.
(Representative: Jui-Tsung Chen )
Jenpal International
Ltd.
Kunshan Botai
Electronics Co., Ltd.
President
Managing Director
Compower Global
Service Co., Ltd.
President
Chairman
President
Director
TWD 614,100
TWD 614,100
TWD 30,705
TWD 30,705
TWD 30,705
TWD 30,705
TWD 8,655
TWD 8,655
Supervisor
Supervisor
7,350,000
7,350,000
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Director
Director
Director
Director
Director
0.00%
0.00%
0.00%
1,000
1,000
0
0
0
233
Company name
Title
Name or name of representative
Fortune Way
Technology Corp.
Just International
Ltd.
Compal Display
Holding (HK)
Limited
Director
Director
Director
Director
Director
Director
Compal Electronics
(China) Co., Ltd.
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Compal Smart
Device (Chongqing)
Co., Ltd.
FIPOLL Electronics
(Chongqing) Co.,Ltd.
Compal
Optoelectronics
(Kunshan) Co., Ltd.
Compal System
Trading (Kunshan)
Co., Ltd.
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: Jui-Tsung Chen )
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 Smart Device (Chongqing) Co.,
Ltd.
(Representative: Ming-Chih Chang )
Compal Smart Device (Chongqing) Co.,
Ltd.
(Representative: Pao-Jui Cheng)
Compal Smart Device (Chongqing) Co.,
Ltd.
(Representative: Cheng-Chiang Wang )
Ming-Chih Chang
Compal Display Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal Display Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal Display Holding (HK) Limited
(Representative: Sheng-Hua Peng)
Compal Display Holding (HK) Limited
(Representative: Ching-Hsiung Lu)
Fu-Chuan Chang
Compal Display Holding (HK) Limited
(Representative: Jui-Tsung Chen )
Compal Display Holding (HK) Limited
(Representative: Sheng-Hsiung Hsu )
Compal Display Holding (HK) Limited
(Representative: Chung-Pin Wong)
234
Shares held
Shares (Note)
Shareholding percentage
14,900,000
100.00%
14,900,000
100.00%
48,010,000
100.00%
48,010,000
100.00%
62,297,500
100.00%
62,297,500
100.00%
TWD 1,136,085
100.00%
TWD 1,136,085
100.00%
TWD 1,136,085
100.00%
TWD 1,136,085
100.00%
0
TWD 259,652
0.00%
100.00%
TWD 259,652
100.00%
TWD 259,652
100.00%
TWD 259,652
0
100.00%
0.00%
TWD 259,652
60.00%
TWD 259,652
60.00%
TWD 259,652
60.00%
0
TWD 371,531
0.00%
100.00%
TWD 371,531
100.00%
TWD 371,531
100.00%
TWD 371,531
0
TWD 42,987
100.00%
0.00%
100.00%
TWD 42,987
100.00%
TWD 42,987
100.00%
Company name
Title
Name or name of representative
Compal Investment
(Jiangsu) Co., Ltd.
Compal Display
Electronics
(Kunshan) Co., Ltd.
Compal
International
Ltd.
Compal Electronics
International Ltd.
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Director
Smart International
Trading Ltd.
Director
Director
Director
Director
Mexcom
Technologies, LLC
Mexcom
Electronics, LLC
Big Chance
International Co.,
Ltd.
Director
Director
Center Mind
Director
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 )
Shares held
Shares (Note)
Shareholding percentage
TWD 42,987
0
100.00%
0.00%
TWD 478,998
100.00%
TWD 478,998
100.00%
TWD 478,998
100.00%
TWD 478,998
100.00%
0
0.00%
TWD 460,575
100.00%
TWD 460,575
100.00%
TWD 460,575
100.00%
TWD 460,575
100.00%
0
500,000
500,000
0.00%
100.00%
100.00%
12,745,000
100.00%
12,745,000
100.00%
1,000
1,000
TWD 31
100.00%
100.00%
100.00%
TWD 252,825
100.00%
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Big chance International Co., Ltd.
90,820,000
100.00%
90,820,000
80,820,000
100.00%
100.00%
235
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
International Co.,
Ltd.
Director
Compal Investment
(Sichuan) Co., Ltd.
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Director
Director
Chairman
Director
Director
Supervisor
President
Director
Director
Compal Electronics
(Chengdu) Co., Ltd.
Compal
Management
(Chengdu) Co., Ltd.
Prisco International
Co., Ltd.
Compal Electronics
(Chongqing) Co.,
Ltd.
Core Profit Holdings
Ltd.
Billion Sea Holdings
Ltd.
Director
Director
Director
Mithera Capital Lo
LP
(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.
(Representative: David Liao )
80,820,000
100.00%
TWD 2,481,578
100.00%
TWD 2,481,578
100.00%
TWD 2,481,578
100.00%
TWD 2,481,578
100.00%
0
0.00%
TWD 2,456,400
100.00%
TWD 2,456,400
100.00%
TWD 2,456,400
100.00%
TWD 2,456,400
100.00%
0
TWD 24,564
0.00%
100.00%
TWD 24,564
100.00%
TWD 24,564
100.00%
TWD 24,564
0
10,000,000
100.00%
0.00%
100.00%
10,000,000
100.00%
TWD 307,050
100.00%
TWD 307,050
100.00%
TWD 307,050
100.00%
TWD 307,050
0
147,000,000
100.00%
0.00%
100.00%
147,000,000
100.00%
147,000,000
100.00%
147,000,000
100.00%
TWD 153,525
99.00%
Compal USA
Chairman
Billion Sea Holdings Ltd.
1,000
100.00%
236
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
(Indiana), Inc.
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
President
Director
(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
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 2,057,235
100.00%
12,700,000
100.00%
12,700,000
100.00%
TWD 389,954
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.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
237
500,000,000
100.00%
500,000,000
100.00%
500,000,000
100.00%
500,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
90,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
100,000,000
100.00%
29,500,000
100.00%
29,500,000
100.00%
29,500,000
100.00%
Company name
Title
Name or name of representative
Compalead
Eletrônica do Brasil
Indústria e
Comércio Ltda.
Compal Electronica
da Amazonia Ltda
Compal Electronics
India Private
Limited
Arcadyan
Technology Corp.
Supervisor
President
Compal Electronics, Inc.
(Representative: Sheng-Chieh Hsu)
Ricardo F Battaglia
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)
Cheng-Hua Sun
Chao-Peng Tseng
Director
Director and
President
Independent Director Ying-Jen Li
Independent Director Ching-Jang Wen
Independent Director Wen-An Yang
Director
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.
Arcadyan Holding
(BVI) Corp.
President
Managers
Director
Managers
Director
Director
Director
Director
Director
Director
Chairman
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)
Arcadyan Technology Corp.
(Representative: Nien-Che, Hsiung)
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)
Arcadyan Technology Corp.
(Representative: Jui-Tsung Chen )
Arcadyan Technology Corp.
238
Shares held
Shares (Note)
Shareholding percentage
29,500,000
100.00%
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
162,669
0
0
0
1,000
0
500
0.00%
0.07%
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%
47,780,148
47,780,148
100.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
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
Director
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Supervisor
President
Chairman
Director
Director
Director
Director
(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: Shih-Wei Huang)
Arcadyan Technology Corp.
(Representative: Chao-Peng Tseng )
Arcadyan Technology Corp.
(Representative: Shih-Wei Huang)
Arcadyan Technology Corp.
(Representative: Fong-Yu, Lu)
Arcadyan Technology Corp.
(Representative: Chih-Fang Lee)
239
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 382,277
100.00%
0.00%
100.00%
TWD 382,277
100.00%
TWD 382,277
100.00%
TWD 382,277
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
0
25,027,910
25,027,910
25,027,910
25,027,910
25,027,910
100.00%
0.00%
61.04%
61.04%
61.04%
61.04%
61.04%
Company name
Title
Name or name of representative
Director
Director
Supervisor
Supervisor
Supervisor
President
Director
Director
Tatung Technology
of Japan Co., Ltd.
Quest International
Group Co., Ltd.
Director
Director
Exquisite Electronic
Co., Ltd.
Director
Tatung Home
Appliances (Wu
Jiang) Co., Ltd.
Arcadyan India
Private Limited
Director
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Compal Broadband
Networks Inc.
Chairman
Director
Director
Director
Shang Chi Investment Co., Ltd.
(Representative: Chia-Tien Lin )
Chunghwa Investment Holding
Company
(Representative: Chih-Cheng Lo)
Ya-Ling Chiang
Yu-Fang Lin
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: Chen-Lung Fan )
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)
Compal Broadband
Networks Belgium
BVBA
Compal Broadband
Networks
Shares held
Shares (Note)
Shareholding percentage
1,027,056
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
19,765,000
35,000
19,765,000
29,060,176
29,060,176
3,575,000
29,060,176
0
0
0
1,160,010
100.00%
0.00%
99.80%
0.20%
99.80%
42.96%
42.96%
5.28%
42.96%
0.00%
0.00%
0.00%
1.71%
20,300
100.00%
Director
Compal Broadband Networks Inc.
(Representative: Yu- Ho Wang)
20,300
100.00%
240
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Netherlands B.V.
Henghao
Technology Co.,Ltd.
Chairman
Vice Chairman
and President
Director
Director
Supervisor
HengHao Holdings
A Co., Ltd.
HengHao Holdings
B Co., Ltd.
HengHao
Optoelectronics
Technology
(Kunshan) CO., LTD
Lucom Display
Technology
(Kunshan) Ltd.
Henghao
Optoelectronics
Technology
(ZheJiang) Co., LTD.
Director
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Chairman
Director
Director
Supervisor
President
Mactech Inc.
Chairman
Director
Director
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. & Billion
Sea Holdings Ltd.
(Representative: Sheng-Hsiung Hsu )
HengHao Holdings A Co., Ltd. & Billion
Sea Holdings Ltd.
(Representative: Chung-Pin Wong)
HengHao Holdings B Co., Ltd.
(Representative: Chen-Chang Hsu)
HengHao Holdings B Co., Ltd.
(Representative: Ming-Yung Chang)
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: Ming-Yung Chang)
HengHao Holdings B Co., Ltd.
(Representative: Jui-Hsiang Yang )
HengHao Holdings B Co., Ltd.
(Representative: Hsiu-Chuan Hsu)
Chen-Chang Hsu
HengHao Holdings B Co., Ltd.
(Representative: Chen-Chang Hsu)
HengHao Holdings B Co., Ltd.
(Representative: Ming-Yung Chang)
HengHao Holdings B Co., Ltd.
(Representative: Jui-Hsiang Yang )
HengHao Holdings B Co., Ltd.
(Representative: Cheng-Chiang Wang )
HengHao Holdings B Co., Ltd.
(Representative: Chen-Chang Hsu)
Compal Electronics, Inc.
(Representative: Yung-Ching Chang)
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
241
20,014,952
100.00%
20,014,952
100.00%
20,014,952
100.00%
20,014,952
100.00%
20,014,952
100.00%
46,882,000
100.00%
46,882,000
100.00%
52,882,000
100.00%
52,882,000
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 460,575
0.00%
100.00%
TWD 460,575
100.00%
TWD 460,575
100.00%
TWD 460,575
0
62,649
62,649
62,649
62,649
62,649
21,756,192
21,756,192
21,756,192
100.00%
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
52.88%
52.88%
52.88%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Director
Director
Director
Director
Supervisor
Chairman
Director and
President
Director
Supervisor
Director
Director
Director
Director
Director
Director
Director
Director
Chairman
Director
Director
Supervisor
President
Director
Director
Director
Director
Director
Director
Rayonnant
Technology Co., Ltd.
Compal Rayonnant
Holdings Ltd.
Allied Power
Holding Corp.
Primetek
Enterprises Ltd.
Rayonnant
Technology
Holdings (HK) Co.,
Ltd.
Rayonnant
Technology
(Taicang) Co., Ltd.
Bizcom Electronics,
Inc.
Compal Europe
(Poland) Sp. z o.o.
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
Compal Electronics, Inc.
(Representative: Ming-Chih Chang)
Wen-Pin Kuo
Chuan-Kuei Lin
Chyou-Jui Wei
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Pao-Jui Cheng)
Compal Electronics, Inc.
(Representative: Hsi-Kuan Chen)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Rayonnant Holdings Ltd.
(Representative: Chung-Pin Wong)
Rayonnant Technology Co., Ltd.
(Representative: Pao-Jui Cheng)
Allied Power Holding Corp.
(Representative: Chung-Pin Wong)
Allied Power Holding Corp.
(Representative: Pao-Jui Cheng)
Allied Power Holding Corp.
(Representative: Chyou-Jui Wei)
Allied Power Holding Corp.
(Representative: Pao-Jui Cheng)
Rayonnant Technology Holdings (HK)
Co., Ltd.
(Representative: Pao-Jui Cheng)
Rayonnant Technology Holdings (HK)
Co., Ltd
(Representative: Cheng-Chiang Wang).
Rayonnant Technology Holdings (HK)
Co., Ltd.
(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.
242
21,756,192
21,756,192
1,301,505
1,720,172
0
52.88%
52.88%
3.16%
4.18%
0.00%
29,500,000
100.00%
29,500,000
100.00%
29,500,000
100.00%
29,500,000
100.00%
12,500,000
100.00%
12,500,000
100.00%
12,500,000
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 552,690
100.00%
TWD 552,690
100.00%
TWD 552,690
100.00%
TWD 552,690
100.00%
0
100,000
100,000
100,000
100,000
136,080
136,080
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
CGS Technology
(Poland)
Sp. z o.o.
Director
Director
Auscom
Engineering Inc.
Flight Global
Holding Inc.
Chairman
Director and
President
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
Compal Electronics
(Holding) Ltd.
Etrade
Management Co.,
Ltd.
Compal
Communications
(Nanjing) Co., Ltd.
Compal Digital
Communications
(Nanjing) Co., Ltd.
Compal Wireless
(Representative: Ming-Chih Chang)
Compal Electronics, Inc.
(Representative: Ming-Chih Chang)
Compal Electronics, Inc.
(Representative: Po-Tang Wang )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Min-Tung Weng)
Compal Electronics, Inc.
(Representative: Chun-Te Shen)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Sheng-Hua Peng)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
Compal Electronics, Inc.
(Representative: Sheng-Hsiung Hsu )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc. & 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.
243
245,911
245,911
100.00%
100.00%
3,000,000
100.00%
3,000,000
100.00%
3,000,000
100.00%
89,755,495
100.00%
89,755,495
100.00%
6,000,000
100.00%
6,000,000
100.00%
6,000,000
100.00%
6,000,000
100.00%
1,000
1,000
100.00%
100.00%
71,900,000
100.00%
TWD 829,035
100.00%
TWD 829,035
100.00%
TWD 829,035
100.00%
TWD 829,035
100.00%
0
TWD 178,089
0.00%
100.00%
TWD 178,089
100.00%
TWD 178,089
100.00%
TWD 178,089
0
TWD 1,504,545
100.00%
0.00%
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Communications
(Nanjing) Co., Ltd.
Webtek Technology
Co., Ltd
Forever Young
Technology Inc.
HANHELT
Communications
(Nanjing) Co., Ltd.
Compal Wise
Electronic
(Vietnam) Co., Ltd.
Director
Director
Supervisor
President
Director
Director
Chairman and
President
Director
Director
Supervisor
Director
Unicom Global. Inc. Chairman
Palcom
International
Corporation
Compalead
Electronics B.V.
General Life
Biotechnology Co.,
Ltd.
Director
Director
Supervisor
Chairman
Director
Director
Supervisor
Director
Director
Chairman
Director
Director
Director
Director
Supervisor
(Representative: Sheng-Hua Peng)
Etrade Management Co., Ltd.
(Representative: Cheng-Chiang Wang)
Etrade Management Co., Ltd.
(Representative: Chung-Shing Tan)
Etrade Management Co., Ltd.
(Representative: Guo-Dung Yu)
Ming-Chih Chang
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen )
Compal Electronics, Inc.
(Representative:Jui-Tsung Chen )
Forever Young Technology Inc.
(Representative: Sheng-Hua Peng)
Forever Young Technology Inc.
(Representative: Chung-Shing Tan)
Forever Young Technology Inc.
(Representative: Wen-Da Hsu)
Forever Young Technology Inc.
(Representative: Jyh-Shyan Liang)
Forever Young Technology Inc.
(Representative：Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong )
Compal Electronics, Inc.
(Representative: Jui-Tsung Chen)
Compal Electronics, Inc.
(Representative: Hsin-Kung Mao)
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
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
244
TWD 1,504,545
100.00%
TWD 1,504,545
100.00%
TWD 1,504,545
100.00%
0
100,000
50,000
0.00%
100.00%
100.00%
TWD 61,410
100.00%
TWD 61,410
100.00%
TWD 61,410
100.00%
TWD 61,410
100.00%
TWD 61,410
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
50.12%
50.12%
50.12%
23.08%
3.31%
8.40%
Company name
Title
Name or name of representative
PT GLB
Biotechnology
Indonesia
Giant Rank Trading
Limited
UniCore Biomedical
Co., Ltd.
Shennona
Corporation
HippoScreen
Neurotech Corp.
SHENNONA CO.,
LTD.
Aco Healthcare
Co.,Ltd.
Starmems
Semiconductor
Corp.
Kinpo&Compal
Group Assets
Development
Supervisor
Chairman
Director
Director
Director
Director
Supervisor
Director
Chairman
Director
Director
Supervisor
Director
Director
Director
Chairman
Director
Director
Director
Supervisor
Chairman
Chairman
Director
Director
Director
Director
Supervisor
Chairman
Vice Chairman
Director
Supervisor
Chairman
Director
Sheng-Hua Peng
Chyou-Jui Wei
Cheng-Ta Chen
Cheng-Chiang Wang
Handi Putranto Wilamarta
Shih-Yu Lin
Guo-Dung Yu
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: Cheng-Chiang Wang)
Compal Electronics, Inc.
(Representative: Chyou-Jui Wei)
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)
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.
245
Shares held
Shares (Note)
0
NT$84,150
NT$84,150
NT$84,150
NT$84,150
NT$84,150
NT$84,150
Shareholding percentage
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
-
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
20,000,000
100.00%
TWD 48,210
100.00%
TWD 48,210
100.00%
TWD 48,210
100.00%
9,100,000
9,100,000
9,100,000
90,000
0
91.00%
91.00%
91.00%
0.9%
0.00%
2,000,000
100.00%
330,276,403
330,276,403
330,276,403
25,561,111
25,561,111
2,250,000
3,500,000
3,500,000
2,300,000
0
402,500,000
402,500,000
71.46%
71.46%
71.46%
5.53%
5.53%
0.49%
35.00%
35.00%
23.00%
0.00%
70.00%
70.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Corporation
Poindus Systems
Corp,Ltd.
Director
Director
Supervisor
Chairman
Vice Chairman
Director
(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)
Compal Electronics, Inc.
(Representative: Cheng-Chiang Wang)
Mu-Cheng Hu
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)
President
Shuo-Chien Ma
Poindus Investment
Co.,Ltd.
Adasys GmbH
Elektronische
Komponenten
QiJie Electronics
(ShenZhen) Co.,Ltd.
Chairman and
President
Supervisor
Poindus Systems UK
Limited
Director
Poindus Systems
GmbH
Compal Ruifang
Health Assets
Development
Corporation
Director
Director
Chairman
Director
Director
Supervisor
Compal Healthcare
& Technology LTD.
Chairman
Director
Director
Supervisor
Director
Director
Compal Americas
(US) Inc.
Wei-Ho Wang
Muh-Perng Hu
Poindus Systems Corp,Ltd.
(Representative: Mu-Cheng Hu)
Poindus Systems Corp,Ltd.
(Representative: Tai-Shan Wu)
Poindus Investment Co.,Ltd.
(Representative: Mu-Cheng Hu)
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)
Compal Electronics, Inc.
(Representative: Chung-Pin Wong)
Compal Electronics, Inc.
(Representative: Jui-Chun Shyur)
Compal Electronics, Inc.
(Representative: Kun-Sung, Chen)
Compal Electronics, Inc.
(Representative: Shih-Chang, Chia)
Compal Electronics International Ltd.
(Representative:Jui-Tsung Chen)
Compal Electronics International Ltd.
(Representative: Chyou-Jui Wei)
246
402,500,000
70.00%
172,500,000
0
11,768,199
30.00%
0.00%
56.04%
11,768,199
56.04%
11,768,199
56.04%
358,000
0
0
0
1.70%
0.00%
0.00%
0.00%
NT$4,100
100.00%
-
0
0
300
300
100.00%
100.00%
100.00%
100.00%
100.00%
NT$1,721
100.00%
30,000,000
100.00%
30,000,000
100.00%
30,000,000
100.00%
30,000,000
100.00%
4,000,000
100.00%
4,000,000
100.00%
4,000,000
100.00%
4,000,000
100.00%
NT 76,763
100.00%
NT 76,763
100.00%
Company name
Title
Name or name of representative
Shares held
Shares (Note)
Shareholding percentage
Compal Electronics
N.A. Inc.
Director
President
Director
Director
Director
President
Compal Electronics International Ltd.
(Representative: Ta-Chun Wang)
Compal Electronics International Ltd.
(Representative: Ta-Chun Wang)
Compal Electronics International Ltd.
(Representative:Jui-Tsung Chen)
Compal Electronics International Ltd.
(Representative: Chyou-Jui Wei)
Compal Electronics International Ltd.
(Representative: Ta-Chun Wang)
Compal Electronics International Ltd.
(Representative: Ta-Chun Wang)
NT 76,763
100.00%
NT 76,763
100.00%
NT 76,763
100.00%
NT 76,763
100.00%
NT 76,763
100.00%
NT 76,763
100.00%
responsible person
Compal
Electronics
(Vietnam) Co.,
Ltd.
Compal Mexico
Electromex, S.A.
de C.V.
Note: Limited liability companies are shown in terms of amount and percentage of capital contribution. (Exchange rates for amount
Compal Electronics, Inc. & Panpal
Technology Co., Ltd.
(Representative: Sheng-Hsiung Hsu)
Jui-Tsung Chen
NT 1,658,070
NT 77,997
100.00%
100.00%
Director
of capital contribution: USD 1: TWD 30.705, CNY 1: TWD 4.3275, and VND 1: TWD 0.001276.)
247
5. Overview of Operating Status for Affiliated Companies in 2023
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
94,627,030
49,566,102
45,060,928
144,368,593
1,029,632
2,551,767
48.15
1,460,443
29,382,195
18,796,419
10,585,776
117,107,160
(292,999)
286,164
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
2,636,051
23,124,658
13,996,411
9,128,247
37,146,475
228,382
Core Profit Holdings Ltd.
4,318,860
8,744,035
664,195
8,079,840
956,481
29,668
2,482,899
48,343,273
47,893,993
449,280
70,072,892
503,340
572,422
417,529
413,513
5,000,000
15,174,656
9,234,093
5,940,563
10,737,440
220,082
(107,077)
900,000
1,000,000
295,000
2,462,434
1,193,703
387,120
50,239
783
70
200,000
80,035
12,796
2,412,195
1,192,920
387,050
67,239
16,232
-
-
-
(302)
(233)
(223)
148,827
111,601
51,046
22,670
(9,307)
(17,243)
-
(472)
(430)
Shennona Corporation
48,209
16,232
-
Arcadyan Technology Corp.
and subsidiaries
Compal Broadband Networks Inc.
and subsidiaries
Henghao Technology Co., Ltd.
and subsidiaries
Mactech Co., Ltd.
2,203,543
38,458,659
23,648,592
14,810,067
51,158,122
3,164,367
2,389,606
676,381
1,671,122
520,463
1,150,659
1,164,054
(318,329)
(326,109)
200,150
5,961,230
6,729,193
(767,963)
8,825,599
175,732
411,458
699,341
117,416
581,925
304,097
37,145
15,876
41,491
248
5.96
6.30
2.84
5.19
(0.21)
1.65
1.12
1.73
(0.86)
-
10.98
(4.84)
0.79
1.01
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.
Etrade Management Co., Ltd.&
subsidiaries
Webtek Technology Co., Ltd.
Forever Young Technology Inc. &
subsidiaries
Unicom Global Inc.
Palcom International Corporation
Company Name
Capital
Total Asset
Total liabilities
Net worth
Ripal Optotronics CO, LTD.
60,000
189,398
74,938
114,460
revenue
134,558
income
(1,077)
Operating
Operating
Net loss/profit for the
EPS (in TWD )
period (after tax)
(After tax)
300,000
787,879
250,394
537,485
440,590
48,349
295,000
456,458
240,560
215,898
1,524,255
(2,338)
18,969
377,328
1,305,563
998,902
306,661
1,591,257
37,922
36,369
90,156
89,669
101,747
502,994
205,918
93,337
210,412
39,461
230,025
584
56,226
82,737
10,343
463,533
(24,107)
92,753
154,186
4,161,690
898,170
146,814
205,565
-
197,366
-
-
5,684
27,603
(1,286)
12,912
(183)
(962)
Flight Global Holding Inc.
2,754,741
4,244,427
Compalead Electronics B.V.
197,463
908,513
2,299,654
2,011,917
2,271,724
(259,807)
3,193,242
(358,495)
(463,604)
3,340
1,575
200,000
100,000
765,547
154,553
610,994
-
2,157,601
611,794
1,545,807
334,467
(136)
1,069
452,150
116,153
369,683
18,001
82,467
98,152
442,373
110,513
(77,412)
(11,955)
(151,389)
(1,513.89)
Compal Electronics (Holding) Ltd.
34
3,616,638
-
3,616,638
-
-
HippoScreen Neurotech Corp.
100,000
23,761
SHENNONA CO., LTD.
Aco Healthcare Co.,Ltd.
20,000
73,948
35,554
72,488
25,851
17,695
20,214
(2,090)
17,859
52,274
249
2,012
(26,630)
(26,827)
43,560
(15)
63
18,995
(60,495)
(60,467)
(1,751)
50,433
19,254
11,411
14,324
(1,399)
4,718
(246,117)
34,757
17,232
(81,407)
(11,342)
-
(0.29)
1.68
0.64
1.54
114.11
105.26
(5.69)
1.57
(2.74)
5.41
(6.45)
344.64
(4.07)
(1.13)
-
(2.68)
0.03
(0.13)
Company Name
Capital
Total Asset
Total liabilities
Net worth
Starmems Semiconductor Corp.
100,000
44,535
9,508
35,027
5,750,000
18,039,705
12,344,846
5,694,859
Operating
Operating
Net loss/profit for the
EPS (in TWD )
revenue
income
period (after tax)
(After tax)
79
-
(36,899)
(36,374)
(20,099)
(27,399)
Kinpo&Compal Group Assets
Development Corporation
POINDUS SYSTEMS CORP.
Compal Ruifang Health Assets
Development Corporation
Compal Healthcare & Technology
Ltd.
Compal Mexico Electromex, S.A. de
C.V.
210,000
740,148
203,298
536,850
693,223
9,133
18,886
300,000
300,768
290
300,478
20,000
20,003
-
20,003
-
-
(506)
-
538
3
78,075
127,033
34,298
92,735
38,641
16,449
15,033
(3.64)
(0.05)
0.90
0.02
0.00
-
6. Common shareholders in controlling and controlled companies: None
250
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, 2023 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: Feburary 29, 2024
8.1.3 Affiliation reports: None
251
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, 2024
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
252
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, 2023 and 2022
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 material accounting policies
(5) Significant accounting assumptions and judgments, and major
sources of estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8) Pledged assets
(9) Commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures
1
2
3
4
5
6
7
8
9
9
9～10
10～40
40
41～89
89～92
92
92～93
93
93
93
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information
93～94, 98～110
94, 111～114
94, 115～116
94
95～97
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, 2023 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: February 29, 2024
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 sheet as of December 31, 2023 and 2022, the
consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended,
and notes to the consolidated financial statements, including a summary of material 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, 2023 and 2022, and its consolidated financial
performance and its consolidated cash flows for the years then ended December 31, 2023 and 2022, 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 Financial Statement Audit and
Attestation Engagements of Certified Public Accountants and 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 Accountant of the Republic of China, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. 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 identification, 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, 2023 and 2022, 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)
February 29, 2024
The accompanying consolidated financial statements are intended only to present the consolidated 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, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars)
Assets
Current assets:
December 31, 2023
December 31, 2022
Amount
%
Amount
%
Cash and cash equivalents (Note (6)(a))
$
72,479,480
16.6
79,665,302
17.6
Current financial assets at fair value through profit or loss (Note (6)(b))
52,062
-
187
-
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:
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))
187,280,320
42.9
186,804,648
41.2
6,434,296
2,372,980
1.5
0.5
4,416,073
2,369,411
1.0
0.5
95,102,692
21.8
111,593,984
24.6
5,202,467
1.1
5,856,898
1.3
368,924,297
84.4
390,706,503
86.2
7,448,351
1,217,512
9,116,008
29,040,525
13,793,968
1,462,162
3,615,912
2,152,239
1.7
0.3
2.1
6.7
3.2
0.3
0.8
0.5
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
67,846,677
15.6
62,777,930
13.8
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 (Note (7))
Current refund liabilities
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
2322
2540
2570
2580
2640
2670
3110
3200
3300
3400
3500
36XX Non-controlling interests
Total equity
5
December 31, 2023
December 31, 2022
Amount
%
Amount
%
$
58,974,271
13.5
74,832,426
16.5
164,535
14,246
-
-
62,527
47,809
-
-
767,327
0.2
784,238
0.2
148,398,334
34.0
152,137,066
33.6
10,597,650
30,464,866
7,594,694
787,396
2,001,766
2,528,809
3,573,141
11,385,027
2.4
7.0
1.7
0.2
0.5
0.6
0.8
2.6
9,701,032
29,622,760
7,202,033
734,061
1,813,555
3,352,565
2,632,039
19,462,800
2.1
6.5
1.6
0.2
0.4
0.7
0.6
4.3
277,252,062
63.5
302,384,911
66.7
15,285,590
1,985,324
8,329,451
651,272
494,422
26,746,059
3.5
0.5
1.9
0.1
0.1
6.1
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
303,998,121
69.6
326,074,590
71.9
44,071,466
10.1
4,270,915
1.0
44,071,466
5,078,580
9.7
1.1
72,548,155
16.6
69,969,059
15.4
(387,294)
(0.1)
(1,943,104)
(0.4)
(881,247)
(0.2)
(881,247)
(0.2)
119,621,995
27.4
116,294,754
25.6
13,150,858
3.0
11,115,089
2.5
132,772,853
30.4
127,409,843
28.1
Total assets
$
436,770,974 100.0
453,484,433 100.0
Total liabilities and equity
$
436,770,974 100.0
453,484,433 100.0
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)
Net sales revenue (Notes (6)(w) and (7))
Cost of sales (Notes (6)(f), (6)(r), (7) and (12))
Gross profit
Operating expenses: (Notes (6)(r) and (12))
Selling expenses
Administrative expenses
Research and development expenses
Net operating income
Non-operating income and expenses:
Interest income (Note (6)(y))
Other gains and losses, net (Notes (6)(d), (6)(y) and (6)(aa))
Finance costs (Notes (6)(o) and (6)(p))
Other income (Note (6)(y))
Miscellaneous disbursements
Impairment loss
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))
6
2023
2022
Amount
%
Amount
%
$ 946,714,800 100.0 1,073,245,915 100.0
904,317,906
95.5 1,032,881,736
96.2
42,396,894
4.5
40,364,179
3.8
6,372,101
4,896,947
19,080,135
30,349,183
12,047,711
4,706,927
260,934
0.7
0.5
2.0
3.2
1.3
0.5
-
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
(5,052,372)
(0.5)
(3,245,701)
(0.3)
456,861
(62,559)
-
(467,077)
(157,286)
11,890,425
2,759,747
9,130,678
2,602
1,221,169
105,613
170,975
-
-
-
-
-
1.3
0.3
1.0
-
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
161,558
-
(1,074,884)
(0.1)
(21,325)
(49,117)
-
-
Components of other comprehensive income that will not be reclassified to profit or loss
1,158,409
0.1
(885,534)
(0.1)
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 (after tax)
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
(184,799)
33,563
(103,664)
4,544
(259,444)
898,965
10,029,643
7,667,627
1,463,051
9,130,678
8,558,794
1,470,849
10,029,643
-
-
-
-
-
0.1
1.1
0.8
0.2
1.0
0.9
0.2
1.1
1.76
1.75
$
$
$
$
$
$
$
7,375,388
0.7
(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
4000
5000
6100
6200
6300
7100
7210
7050
7190
7590
7670
7770
7900
7950
8300
8310
8311
8316
8320
8349
8360
8361
8368
8370
8399
8300
8500
8610
8620
8710
8720
9750
9850
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars)
Equity attributable to owners of parent
7
Total other equity interest
Unrealized
gains
(losses) on
financial assets
measured at
fair value
through other
comprehensive
income
Others
Exchange
differences on
translation of
foreign
financial
statements
Total other
equity
interest
Treasury
shares
Total equity
attributable
to owners of
parent
(8,744,705)
-
7,274,994
7,274,994
537,830
-
(1,032,694)
(1,032,694)
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
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,469,711)
-
(277,619)
(277,619)
-
-
-
-
-
-
-
-
-
-
(1,747,330)
-
-
-
-
-
-
-
36,599
(2,838)
-
(461,103)
-
1,162,170
1,162,170
-
-
-
-
-
-
3,469
13,433
645,503
-
1,363,472
-
-
-
-
-
-
-
-
-
-
(12,290)
-
8,854
8,854
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,599
(2,838)
-
-
-
-
-
-
-
-
-
-
-
-
(7,051,435)
(1,762,859)
31,137
(19,818)
100,035
1,217
-
-
(1,943,104)
-
893,405
893,405
(881,247) 116,294,754
7,667,627
891,167
8,558,794
-
-
-
-
-
-
-
-
-
3,469
13,433
645,503
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
(10,970)
6,932
60,021
1,040
-
-
(3,436)
(387,294)
(881,247) 119,621,995
Non-
controlling
interests Total equity
121,539,803
10,179,538
8,541,527
1,253,235
6,535,651
187,731
15,077,178
1,440,966
-
-
-
-
-
-
-
-
-
-
-
(7,051,435)
(1,762,859)
31,137
(19,818)
100,035
1,217
-
(505,415)
11,115,089
1,463,051
7,798
1,470,849
(505,415)
127,409,843
9,130,678
898,965
10,029,643
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
(10,970)
6,932
60,021
1,040
-
564,920
13,150,858
564,920
132,772,853
Retained earnings
Unappropriated
retained
earnings
41,045,820
7,288,292
118,035
7,406,327
(1,237,434)
(940,042)
(7,051,435)
(2,260)
Total
retained
earnings
69,651,940
7,288,292
118,035
7,406,327
-
-
(7,051,435)
-
(2,260)
(38,351)
(38,351)
-
-
2,838
2,838
-
-
-
-
-
-
-
39,185,463
7,667,627
(2,238)
7,665,389
(736,855)
6,263,646
(4,407,147)
(16,652)
-
69,969,059
7,667,627
(2,238)
7,665,389
-
-
(4,407,147)
-
(16,652)
-
-
(645,503)
-
72,548,155
(16,991)
(16,991)
Special
reserve
7,266,708
-
-
-
-
940,042
-
-
-
-
-
-
-
-
8,206,750
-
-
-
-
(6,263,646)
-
-
-
-
-
-
-
-
(645,503)
-
1,943,104
47,291,350
Balance at January 1, 2022
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
Disposal of investments in equity instruments measured at fair
value through other comprehensive income
Others
Changes in non-controlling interests
Balance at December 31, 2022
Profit for the year ended December 31, 2023
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Reversal of special reserve
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, 2023
Ordinary
shares
$ 44,071,466
-
-
-
-
-
-
-
-
-
-
-
-
-
44,071,466
-
-
-
-
-
-
-
-
-
-
-
-
-
$ 44,071,466
Capital
surplus
6,724,856
-
-
-
-
-
-
(1,762,859)
33,397
(18,066)
100,035
1,217
-
-
5,078,580
-
-
-
-
-
-
(881,429)
2,213
10,490
60,021
1,040
-
-
4,270,915
Legal
reserve
21,339,412
-
-
-
1,237,434
-
-
-
-
-
-
-
-
-
22,576,846
-
-
-
736,855
-
-
-
-
-
-
-
-
-
23,313,701
See accompanying notes to consolidated financial statements.
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2023 and 2022
(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 (gain) loss 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 of associates and joint ventures accounted for using equity method
Gain on disposal of property, plant and equipment, and intangible assets
Impairment loss on financial assets
Others
Total adjustments to reconcile profit (loss)
Changes in operating assets and liabilities:
Changes in operating assets:
(Increase) decrease in financial assets at fair value through profit or loss
(Increase) decrease in notes and accounts receivable
Decrease in other receivable
Decrease in inventories
Increase in other current assets
(Increase) decrease in other non-current assets
Total changes in operating assets
Changes in operating liabilities:
Increase in financial liabilities at fair value through profit or loss
Decrease in notes and accounts payable
Increase in other payables
Increase in refund liabilities
Increase (decrease) in provisions
Decrease in contract liabilities
(Decrease) 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 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
Decrease (increase) in restricted assets
Others
Net cash flows used in investing activities
Cash flows from (used in) financing activities:
Decrease 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 financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase 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
2023
2022
$
11,890,425
10,724,130
7,873,526
70,161
(44,367)
5,052,372
(4,706,927)
(148,092)
(2,972)
467,077
(43,977)
-
(790)
8,516,011
(51,875)
(2,547,159)
55,383
16,491,292
(614,508)
(431,265)
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
12,901,868
102,460,898
102,008
(2,842,114)
2,190,306
941,102
53,335
(16,911)
(823,756)
(6,193)
(402,223)
12,499,645
21,015,656
32,906,081
4,636,183
347,078
(5,183,213)
(3,028,925)
29,677,204
(3,148,973)
47,921
(98,160)
-
3,992
(7,169,728)
326,557
(373,363)
697,049
194,245
(9,520,460)
(15,858,155)
-
47,192,669
(51,659,174)
(2,114,467)
(5,228,555)
553,966
(35,568)
(27,149,284)
(193,282)
(7,185,822)
79,665,302
72,479,480
$
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
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2023 and 2022
(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 February 29, 2024.
(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, 2023:
● 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”
In addition, the Group has adopted Amendments to IAS 12“International Tax Reform – Pillar Two
Model Rules” on May 23, 2023. The amendments provide a temporary mandatory exception from
deferred tax accounting for the top-up tax, which applies retrospectively, and require new
disclosures about the Pillar Two exposure for annual reporting periods beginning on or after January
1, 2023. However, because on December 31, 2023, no new legislation to implement the top-up tax
was enacted or substantively enacted in any jurisdiction in which the Group operates and no related
deferred taxes were recognised at that date, the retrospective application has no impact on the
Group’ s condensed financial statements. The Group is closely monitoring developments related to
the implementation of the international tax reforms introducing a global minimum top-up tax.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
10
(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, 2024, would not have a significant impact on its consolidated financial
statements:
● Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
● Amendments to IAS 1 “Non-current Liabilities with Covenants”
● Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
● Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC
The Group does not expect the following 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”
● Amendments to IAS21 “Lack of Exchangeability”
(4)
Summary of material accounting policies:
The material 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, International Accounting Standards,
IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter
referred to as the IFRS endorsed by the FSC).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
11
(b) Basis of preparation
(i)
Basis of measurement
Except for the following significant accounts in the statement of financial position, the
consolidated financial statements have been prepared on the historical cost basis:
1)
2)
3)
4)
Financial instruments (including derivative financial instruments) at fair value through
profit or loss are measured at fair value;
Financial assets measured at fair value through other comprehensive income are
measured at fair value;
Hedging financial instruments are measured at fair value;
The defined benefit liabilities (assets) are measured at fair value of the plan assets less
the present value of the defined benefit obligation, limited as explained in note (4)(r).
(ii) Functional and presentation currency
The functional currency of each Group entities is determined based on the primary economic
environment in which the entities operates. The consolidated financial statements are presented
in New Taiwan Dollar, which is the Company's functional currency. All financial information
presented in New Taiwan Dollar has been rounded to the nearest thousand.
(c) Basis of consolidation
(i)
Principles of preparation of the consolidated financial statements
The consolidated financial statements comprise the Company and its subsidiaries. The Group
controls an entity when it is exposed, or has rights, to variable returns from its involvement
with the entity and has the ability to affect those returns through its control over the entity.
The financial statements of subsidiaries are included in the consolidated financial statements
from the date that control commences until the date that control ceases. Intragroup balances
and transactions, and any unrealized income and expenses arising from intragroup transactions
are eliminated in preparing the consolidated financial statements. The Group attributes the
profit or loss and each component of other comprehensive income to the owners of the parent
and to the non-controlling interests, even if this results in the non-controlling interests having 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 amount by which the
non-controlling interests are adjusted and the fair value of the consideration paid or received
will be recognized directly in equity, and the Group will attribute it to the owners of the parent.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
12
When the Group loses control over a subsidiary, it derecognizes the assets (including any
goodwill) and liabilities of the subsidiary, and any related non-controlling interests and other
components of equity. Any interest retained in the former subsidiary is measured at fair value
when control is lost, with the resulting gain or loss being recognized in profit or loss. The
Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the
consideration received as well as any investment retained in the former subsidiary at its fair
value at the date when control is lost ;and (ii) the assets (including any goodwill), liabilities of
the subsidiary as well as any related non-controlling interests at their carrying amounts at the
date when control is lost, as gain or loss in profit or loss. When the Group loses control of its
subsidiary, it accounts for all amounts previously recognized in other comprehensive income in
relation to that subsidiary on the same basis as would be required if it had directly disposed of
the related assets or liabilities.
(ii) List of subsidiaries in the consolidated financial statements
Name of
investor
The Company
Name of Subsidiary
Panpal Technology Corp.
(“Panpal”)
Nature of Operation
Investment
〃
Gempal Technology Corp.
(“Gempal”)
〃
〃
The Company,
Panpal, et al.
The Company
and Panpal
Hong Ji Capital Co., Ltd.
(“Hong Ji”)
Hong Jin Investment Co.,
Ltd. (“Hong Jin”)
Arcadyan Technology
Corp. (“Arcadyan”)
Compal Mexico
Electromex S.A de C.V.
(“CMX”)
The Company
Rayonnant Technology
Co., Ltd. (“Rayonnant
Technology”)
HengHao Technology Co.,
Ltd. (“HengHao”)
Ripal Optoelectronics Co.,
Ltd. (“Ripal”)
Mactech Co., Ltd
(“Mactech”)
General Life Biotechnology
Co., Ltd. (“GLB”)
〃
〃
〃
〃
〃
〃
〃
R&D, manufacturing and sales of
wireless network, integrated household
electronics, and mobile office products
Production of automotive electronic
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
Percentage of
ownership
December
31, 2023
100%
December
31, 2022
Description
100% Panpal held 31,648
100%
thousand shares of the
Company as of December
31, 2023, which represented
0.7% of the Company’s
outstanding shares.
100% Gempal held 18,369
thousand shares of the
Company as of December
31, 2023, which represented
0.4% of the Company’s
outstanding shares.
100%
100%
100%
100%
33%
33% The Group had the ability to
control Arcadyan. (Note 1)
100 %
-
CMX was established in
April 2023.
100%
100%
100%
100%
100%
100%
53%
53%
50%
50%
(Continued)
Name of
investor
Name of Subsidiary
The Company 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 ”)
Compal Healthcare &
Technology Ltd.
(“Compal Healthcare”)
Shennona Corporation
(“Shennona”)
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
13
Nature of Operation
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
Percentage of
ownership
December
31, 2023
December
31, 2022
100%
100%
Description
91%
91%
100%
100%
71%
52%
70%
70%
Investing and developing businesses,
such as public construction and specific
zones
100%
100%
Information software service, data
processing services, and electronic
information supply service
Medical care IOT business
Auscom Engineering Inc.
(“Auscom”)
Just International Ltd.
R&D of notebook PC related products
and components
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”)
100%
-
Compal Healthcare was
established in December
2023.
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
The Company
and BSH
The Company
〃
〃
〃
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”)
Maintenance and warranty services of
notebook PCs
Investment
〃
〃
100%
100%
100%
100%
100%
100%
100%
100%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
14
Name of
investor
The Company
〃
Panpal and
Gempal
Name of Subsidiary
Compalead Electronics
B.V. (“CPE”)
CGS Technology (Poland)
Sp. z o.o. (“CGSP”)
Compalead Eletronica do
Brasil Industria e
Comercio Ltda.
(“CEB”)
Nature of Operation
〃
Percentage of
ownership
December
31, 2023
December
31, 2022
100%
100%
Description
Maintenance and warranty services of
notebook PCs
Manufacturing of notebook PCs
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”)
Just
Compal Display Holding
Investment
100%
100%
〃
〃
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”)
〃
〃
100%
100%
100%
100%
Manufacturing and sales of monitors
100%
100%
Manufacturing and sales of LCD TVs
100%
100%
International trade and distribution of
computers and electronic components
100%
100%
CPC
Compal Smart Device
(Chongqing) Co., Ltd.
(“CSD”)
CSD
FIPOLL Electronics
(Chongqing) Co., Ltd.
(“FIP”)
Research, manufacturing and sales of
communication devices, mobile phones,
electronic computer, smart watch, and
providing related technical service
Manufacturing of automotive parts and
accessories
100%
100%
60%
-
FIP was established in
December 2023.
CII
〃
〃
〃
〃
〃
Smart International
Investment
100%
100%
Trading Ltd. (“Smart”)
Amexcom Electronics Inc.
(“AEI”)
Sales and maintenance of LCD TVs
-
100% The liquidation of the
company had been
completed on February 15,
2023.
Mexcom Electronics, LLC
Investment
100%
100%
(“MEL”)
Mexcom Technologies,
LLC (“MTL”)
Compal Americas (US)
Inc. (“CUS”)
Compal Electronics N.A.
Inc. (“CNA”)
〃
100%
100%
Sales of automotive electronic products
〃
100%
100%
-
-
CUS was established in
April 2023.
CNA was established in
April 2023.
(Continued)
Name of
investor
CIH
〃
〃
〃
CIH (HK)
〃
〃
〃
〃
BT
(“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”)
CDH (HK)
and CIH (HK)
CIJ
Compal Investment
(Jiangsu) Co., Ltd.
(“CIJ”)
Compal Display
Electronics (Kunshan)
Co., Ltd. (“CDE”)
Etrade Management Co.,
The Company
and Webtek
The Company Webtek Technology Co.,
Ltd. (“Etrade”)
〃
〃
〃
〃
Ltd. (“Webtek”)
Forever Young Technology
Inc. (“Forever”)
UniCom Global, Inc.
(“UCGI”)
Palcom International
Corporation (“Palcom”)
Poindus Systems Corp,
Ltd. (“Poindus
Systems”)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
15
Name of Subsidiary
Nature of Operation
Compal International
Investment
Holding (HK) Limited
(“CIH (HK)”)
Jenpal International Ltd.
Investment
〃
〃
Percentage of
ownership
December
31, 2023
December
31, 2022
100%
100%
Description
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
〃
〃
Manufacturing and sales of computers
and electronic components
Sales of mobile phones
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sales of PCs and computer periphery
devices
56%
56% The Group acquired 56% of
its shares in March 2022.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
16
Name of
investor
Name of Subsidiary
Poindus Systems Poindus Investment Co.,
Nature of Operation
Investment holding
December
31, 2023
100%
December
31, 2022
Description
100% The Group indirectly
Percentage of
ownership
Ltd. (“Poindus
Investment”)
〃
QiJie Electronics
(ShenZhen) Co., Ltd.
(“QiJie”)
Sales of PCs and computer periphery
devices
acquired 100% of its shares
after acquiring 56% of
Poindus Systems’ shares in
March 2022.
The Company had resolved
its dissolution and
liquidation on December
22, 2022.
100%
100% The Group indirectly
acquired 100% of its shares
after acquiring 56% of
Poindus Systems’ shares in
March 2022.
Sales of PCs and computer periphery
devices
100%
100%
100%
100%
〃
〃
〃
〃
Poindus Systems UK
Limited (“Poindus
UK”)
Adasys GmbH
Elektronische
Komponenten
(“Adasys”)
Poindus
Investment
Poindus Systems GmbH
GroBhandel mit EDV.
Oberursel (“Poindus
GmbH”)
〃
〃
100%
100% The Group indirectly
GLB and Panpal PT GLB Biotechnology
Wholesale of medical devices
100%
-
Indonesia
CDH (HK) and
Etrade
Compal Communication
(Nanjing) Co., Ltd.
(“CCI Nanjing”)
Etrade
Compal Digital
Communication
(Nanjing) Co., Ltd.
(“CDCN”)
Compal Wireless
Communication
(Nanjing) Co., Ltd.
(“CWCN”)
Hanhelt Communication
(Nanjing) Co., Ltd.
(“Hanhelt”)
〃
Forever
〃
〃
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”)
Compal Wise Electronic
(Vietnam) Co., Ltd.
(“CWV”)
Manufacturing and sales of mobile
phones, tablet PCs, smart watches,
communication devices, other electronic
devices and providing related technical
service.
100%
100%
acquired 100% of its shares
after acquiring 56% of
Poindus Systems’ shares in
March 2022.
The Company had resolved
its dissolution and
liquidation on December
22, 2022.
PT GLB Biotechnology
Indonesia was established in
December 2023.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
17
Name of
investor
Arcadyan
〃
〃
〃
〃
〃
〃
〃
〃
〃
Name of Subsidiary
Arcadyan Technology N.A.
Corp. (“Arcadyan
USA”)
Arcadyan Germany
Technology GmbH
(“Arcadyan Germany”)
Arcadyan Technology
Corporation Korea
(“Arcadyan Korea”)
Arcadyan Holding (BVI)
Corp. (“Arcadyan
Holding”)
Arcadyan Technology
Limited (“Arcadyan
UK”)
Arcadyan Technology
Australia Pty Ltd.
(“Arcadyan AU”)
Arcadyan Technology
Corporation (Russia),
LLC. (“Arcadyan RU”)
Zhi-Bao Technology Inc.
(“Zhi-Bao”)
Tatung Technology Inc.
(“TTI”)
AcBel Telecom Inc.
(“AcBel Telecom”)
Nature of Operation
Technical support and sales of wireless
network products
Percentage of
ownership
December
31, 2023
December
31, 2022
100%
100%
Description
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%
-
-
The liquidation of the
company had been
completed on August 19,
2022.
Arcadyan and
Zhi-Bao
〃
The Company,
Arcadyan and its
subsidiaries
CBN
Arcadyan do Brasil Ltda.
(“Arcadyan Brasil”)
Arcadyan India Private
Limited (“Arcadyan
India”)
Compal Broadband
Network Inc. (“CBN”)
Compal Broadband
Networks Belgium
BVBA (“CBNB”)
Sales of wireless network products
100%
100%
Sales of wireless network products
100%
100%
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%
63%
100%
100%
〃
Compal Broadband
〃
100%
100%
Networks Netherlands
B.V. (“CBNN”)
The Company
and CBN
Starmems Semiconductor
Corp. (“Starmems”)
Arcadyan
Holding
Sinoprime Global Inc.
(“Sinoprime”)
R&D of MEMS technology of
manufacturing process of semiconductor
and manufacturing of electronic
components
Investment
〃
〃
Arcadyan Technology
(Shanghai) Corp. (“SVA
Arcadyan”)
R&D and sales of wireless network
products
Arch Holding (BVI) Corp.
Investment
(“Arch Holding”)
45%
45% The Group had the ability to
control Starmems. (Note 1)
100%
100%
100%
100%
100%
100%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
18
Name of
investor
Name of Subsidiary
Nature of Operation
Manufacturing of wireless network
products
Percentage of
ownership
December
31, 2023
December
31, 2022
100%
100%
Description
Arch Holding Compal Networking
Sinoprime
TTI
〃
Quest
Exquisite
(Kunshan) Co., Ltd.
(“CNC”)
Arcadyan Technology
(Vietnam) Co., Ltd.
(“Arcadyan Vietnam”)
Quest International Group
Co., Ltd. (“Quest”)
Tatung Technology of
Japan Co., Ltd.
(“TTJC”)
Exquisite Electronic Co.,
Ltd. (“Exquisite”)
Tatung Home Appliances
(Wujiang) Co., Ltd.
(“THAC”)
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%
100%
100%
HSI
Intelligent Universal
Investment
Enterprise Ltd. (“IUE”)
〃
Goal Reach Enterprises
〃
100%
100%
Ltd. (“Goal”)
IUE
Compal (Vietnam) Co.,
Ltd. (“CVC”)
Goal
Rayonnant
Technology and
CRH
APH
〃
Rayonnant
Technology
(HK)
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)”)
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%
HengHao
HengHao Holdings A Co.,
Investment
100%
100%
Ltd. (“HHA”)
HHA and BSH HengHao Holdings B Co.,
〃
100%
100%
HHB
〃
〃
Ltd. (“HHB”)
HengHao Optoelectronics
Technology (Kunshan)
Co., Ltd. (“HengHao
Kunshan”)
Lucom Display Technology
(Kunshan) Limited
(“Lucom”)
HengHao Optoelectronics
Technology (Zhejiang)
Co., Ltd. (“HengHao
Zhejiang”)
Production of touch panels and related
components
100%
100%
Manufacturing of touch panels and LCD
TVs
100%
100%
Production of touch panels and related
components
100%
-
HengHao Zhejiang was
established in March 2023.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
19
Name of
investor
BCI
〃
CMI
Name of Subsidiary
Center Mind International
Co., Ltd. (“CMI”)
Prisco International Co.,
Ltd. (“PRI”)
Compal Investment
(Sichuan) Co., Ltd.
(“CIS”)
PRI
Compal Electronics
(Chongqing) Co., Ltd.
(“CEQ”)
CIS
Compal Electronics
(Chengdu) Co., Ltd.
(“CEC”)
〃
Compal Management
(Chengdu) Co., Ltd.
(“CMC”)
CORE
BSH
〃
〃
Billion Sea Holdings
Limited (“BSH”)
Mithera Capital Io LP
(“Mithera”)
Compal USA (Indiana),
Inc. (“CIN”)
Compal Electronics
(Vietnam) Co., Ltd.
(“CEV”)
Unicore
Raycore Biotech Co., Ltd.
(“Raycore”)
Nature of Operation
Investment
Percentage of
ownership
December
31, 2023
December
31, 2022
100%
100%
Description
〃
100%
100%
Outward investment and consulting
services
100%
100%
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%
〃
99%
99%
Foundry of automotive electronic
products
R&D, manufacturing, sales and
maintenance of notebook PCs, computer
monitors, LCD TVs, mobile phones,
tablet PCs, smart watches,
communication devices and other
electronic devices
Animal medication retail and wholesale
100%
100%
100%
-
-
-
CEV was established in
May 2023.
Raycore was merged with
Unicore in February 2022.
Unicore was the surviving
company and Raycore was
the dissolved company.
Note 1:The Group holds less than half of the voting rights of the company, but the Group considers that the rest of the company’ s
shareholding is extremely dispersed. The previous procedures for the participation of other shareholders in the shareholders’
meeting show that the Group has the actual ability to unilaterally dominate the relevant activities, and there is no 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 into 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 into the functional currencies 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.
Exchange differences are generally recognized in profit or loss, except for those differences
relating to the following, which are recognized in other comprehensive income:
1)
2)
a financial asset designated as at fair value through other comprehensive income;
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 hedges are 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. Exchange differences are recognized in other comprehensive income.
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, exchange differences arising from such a
monetary item that are considered to form part of the net investment in the foreign operation
are recognized in other comprehensive income.
(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 is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii)
It holds the asset primarily for the purpose of trading;
(iii)
It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash and cash equivalent unless the asset is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting period.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
21
A liability is classified as current under one of the following criteria, and all other liabilities are
classified as non-current.
(i)
It is expected to be settled in the normal operating cycle;
(ii)
It is held primarily for the purpose of trading;
(iii)
It 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 short-term, highly liquid
investments that are readily convertible to known amounts of cash and are subject to an insignificant
risk of changes in value. 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
should be recognized 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 (SPPI) 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.
Land has an unlimited useful life and therefore is not depreciated.
The estimated useful lives for the current and comparative years of significant items of
property, plant and equipment are as follows:
1)
2)
Buildings: 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
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
31
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;
－ amounts expected to be payable under a residual value guarantee; and
－ payments for purchase or termination options that are reasonably certain to be exercised.
The lease liability is measured at amortized cost using the effective interest method. It is
remeasured when:
－ there is a change in future lease payments arising from the change in an index or rate; or
－ there is a change in the Group’s estimate of the amount expected to be payable under a
residual value guarantee; or
－ there is a change in the lease term resulting from a change of its assessment on whether it
will exercise an option to purchase the underlying asset, or
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
32
－ 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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
33
(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.
(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:
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
34
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
35
(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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
36
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
37
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.
(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.
The Group has determined that the global minimum top-up tax – which it is required to pay under
Pillar Two legislation – is an income tax in the scope of IAS 12. The Group has applied a temporary
mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as
a current tax when it is incurred.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
38
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)
Temporary differences on the initial recognition of assets and liabilities in a transaction that is
not a business combination and at the time of the transaction (1) affects neither accounting nor
taxable profits (losses) and (2) does not give rise to equal taxable and deductible temporary
differences;
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
39
(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.
(v) Earnings per share
The Group discloses the basic and diluted earnings per share attributable to ordinary equity holders
of the Group. The calculation of basic earnings per share is based on the profit attributable to the
ordinary shareholder of the Group divided by weighted average number of ordinary shares
outstanding. The calculation of diluted earnings per share is based on the profit attributable to
ordinary shareholders of the Group divided by weighted average number of ordinary shares
outstanding after adjustment for the effects of all dilutive potential ordinary shares. Dilutive
potential ordinary shares comprise employee compensation not yet approved by the Board of
Directors.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
40
(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.
(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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
41
(6) Explanation of significant accounts:
(a) Cash and cash equivalents
Cash on hand
Checking accounts and demand deposits
Time deposits
Cash equivalents
December 31,
2023
December 31,
2022
$
17,687
17,835
32,426,802
39,976,385
37,820,891
35,233,038
2,214,100
4,438,044
$
72,479,480
79,665,302
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
Financial assets 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,
2023
December 31,
2022
$
158,680
1,058,832
117,150
441,759
4,519
47,543
187
-
1,269,574
559,096
52,062
1,217,512
1,269,574
187
558,909
559,096
$
$
$
December 31,
2023
December 31,
2022
Financial liabilities held-for-trading:
Derivative instruments not used for hedging
Foreign exchange contracts
$
164,535
62,527
(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, 2023
Contract amount
(in thousands)
Currency
Maturity date
Derivative financial assets:
Foreign exchange contracts:
Forward exchange sold
USD 7,087
USD to TWD January 5 ~ March 25, 2024
Forward exchange purchased
USD 3,609
USD to INR
January 30, 2024
Swap contracts:
Currency Swap
Derivative financial liabilities:
Foreign exchange contracts:
USD 70,000
USD to TWD January 26 ~ March 28, 2024
Forward exchange purchased
USD 124,500
USD to BRL
January 11 ~ May 31, 2024
Forward exchange purchased
USD 3,595
USD to INR
January 12, 2024
Forward exchange sold
EUR 17,000
EUR to USD January 12 ~ April 12, 2024
December 31, 2022
Contract amount
(in thousands)
Currency
Maturity date
EUR
USD
8,000
512
EUR to USD May 12 ~ June 14, 2023
USD to INR
January 31, 2023
Derivative financial assets:
Foreign exchange contracts:
Forward exchange sold
Forward exchange purchased
Derivative financial liabilities:
Foreign exchange contracts:
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 04 ~ June 15, 2023
The market risk related to the financial instruments please refer to note (6)(aa).
As of December 31, 2023 and 2022, 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,
2023
December 31,
2022
$
$
4,349,429
2,906,241
1,454,947
405,391
9,116,008
2,797,667
579,341
1,822,164
226,736
5,425,908
The purpose that the Group invests in the above-mentioned equity securities is for long-term
strategies, but rather for trading purpose. Therefore, these equity securities are designated as at
FVOCI.
For the year ended December 31, 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.
For the year ended December 31, 2023, the Group has sold all of its shareholdings, measured at fair
value through other comprehensive income, in Genovior Biotech Corp. The fair value of the shares
upon disposal amounted to $47,921, resulting in a cumulative gain of $17,790, which was
reclassified from other comprehensive income to retained earnings.
The Group held the shareholdings, measured at fair value through other comprehensive income, in
Taiwan Star Telecom Corporation Limited (“ Taiwan Star” ), which was absorbed and merged by
Taiwan Mobile Co., Ltd. (“Taiwan Mobile”) on December 1, 2023, as the date of the merger. In this
stock swap case, the shareholdings of Taiwan Star were exchanged for the exchange consideration of
$318,830 on the date of the merger, resulting in a cumulative loss on disposal of $666,762, which
was reclassified from other equity 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, 2023 and 2022, will be $455,800 and $271,295, 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, 2023 and 2022, 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, 2023
December 31,
2022
$
14,246
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, 2023 and 2022 the details related to the items designated as hedge
instruments were as follows:
Contract amount
(in thousands)
Currency
Maturity period
Average
strike price
December 31, 2023
Derivative financial
liabilities used for
hedging
Foreign exchange
contracts:
Forward exchange
sold
Derivative financial
liabilities used for
hedging
Foreign exchange
contracts:
EUR 32,000
EUR to USD
January 30 ~
June 27, 2024
1.0960
Contract amount
(in thousands)
Currency
Maturity period
Average
strike price
December 31, 2022
Forward exchange
EUR 65,000
EUR to USD
sold
January 30 ~
December 28, 2023
1.0472
(iii) For the year ended December 31, 2023 and 2022, the ineffective portions of cash flow hedge
recognized in profits (losses) amounted of $944 and $44,071, respectively, recorded as “other
gains and losses, net”.
(iv) For the year ended December 31, 2023 and 2022, 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, net
Notes and accounts receivable – related parties, net
December 31,
2023
December 31,
2022
$
44,525
167,289,327
10,645
179,043,536
30,358,572
197,692,424
(3,977,808)
$ 193,714,616
$ 187,280,320
6,434,296
$
16,091,084
195,145,265
(3,924,544)
191,220,721
186,804,648
4,416,073
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, 2023
Carrying
amount of notes
and accounts
receivable
$
$
171,224,931
12,850,108
3,790,493
187,865,532
Weighted-
average
ECL rate
0%
1.14%
100%
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%
Credit rating
Level A
Level B
Level C
Credit rating
Level A
Level B
Level C
Lifetime ECLs
-
146,162
3,790,493
3,936,655
Lifetime ECLs
-
84,412
3,795,534
3,879,946
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, 2023
Carrying
amount of notes
and accounts
receivable
$
$
3,377,894
4,778,380
1,650,599
-
20,019
9,826,892
Weighted-
average
ECL rate
0%
0.10%
1.00%
-
100%
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%
Credit rating
Level A
Level B
Level C
Level D
Level E
Credit rating
Level A
Level B
Level C
Level D
Level E
Lifetime ECLs
-
-
4,832
16,302
20,019
41,153
Lifetime ECLs
-
-
6,923
17,653
20,022
44,598
Credit-
impaired
No
No
No
-
Yes
Credit-
impaired
No
No
No
-
Yes
The aging analysis of notes and accounts receivable were determined as follows:
Overdue 1 to 180 days
Overdue 181 to 365 days
Overdue 365 days
December 31,
2023
3,094,481
$
December 31,
2022
3,119,372
135
89,230
-
8,552
$
3,183,846
3,127,924
The movement in the allowance for notes and accounts receivable were as follows:
Balance at January 1
Acquisition through business combination
Impairment losses recognized (reversed)
Effect of changes in exchange rates
2023
3,924,544
$
2022
3,891,948
-
58,369
(5,105)
59
30,394
2,143
Balance at December 31
$
3,977,808
3,924,544
(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,
2023 and 2022, except for the amount used under the actual sales amount in accordance with certain
agreements, the factoring amount granted by the banks was USD 2,215,000 thousand and EUR 1,000
thousand, USD 1,600,000 thousand and EUR 1,000 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, 2023 and 2022, the factored accounts receivable with no advance
amounting to $200 and $447, 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, 2023 and 2022, accounts receivable factored were
recovered and derecognized since the conditions of derecognition were met.
As of December 31, 2023 and 2022, the details of the factored accounts receivable but unsettled
were as follows:
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 13,188,220
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 30,114,458
December 31, 2023
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivable
Amount
Collateral
derecognized Interest rate
-
13,188,020
200
-
13,188,220 2.75%~6.20%
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%
As of December 31, 2023 and 2022, 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,
2023
28,283,848
$
December 31,
2022
42,519,903
10,441,483
11,680,487
56,020,648
56,764,510
356,713
629,084
$
95,102,692
111,593,984
(i)
For the years ended December 31, 2023 and 2022, inventory cost recognized as cost of sales
amounted to $904,317,906 and $1,032,881,736, respectively.
(ii) Due to the sale and scrap of slow-moving inventories, the net realizable value of inventory
recovered, and the reversal of inventory write-downs and slow-moving losses amounted to
$1,333,316 for the year ended December 31, 2023. The loss due to the write-down of
inventories to net realizable value amounted to $1,992,685 for the yearended December 31,
2022.
(iii) As of December 31, 2023 and 2022, the Group provided part of its inventories as collaterals
for its short-term borrowings. Please refer to note (8).
(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 (recorded as other non-current liability)
Less: unrealized profits or losses
(i) Associates
December 31,
2023
7,563,017
$
December 31,
2022
8,142,707
6,144
(18,066)
7,569,161
8,124,641
-
43,757
(120,810)
(120,829)
$
7,448,351
8,047,569
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,
2023
2,659,099
$
December 31,
2022
1,741,281
1,783,426
$
4,442,525
1,214,819
2,956,100
(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 loss of associates
2023
(491,225)
$
2022
(270,373)
3)
The Group’s financial information for investments accounted for using the equity method
that are individually immaterial was as follows:
Carrying amount of individually immaterial associates
The Group’s share of the net income (loss) of associates:
Loss from continuing operations
Other comprehensive income
Total comprehensive income
December 31,
2023
7,563,017
$
December 31,
2022
8,142,707
2023
2022
$
$
(491,225)
1,949
(489,276)
(270,373)
60,255
(210,118)
(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 liquidation of Zheng
Ying had been completed in February 2023.
The Group’s financial information for investment accounted for using the equity method that
are individually insignificant was as follows:
The carrying amount of the Group’s interests in all individually
insignificant joint ventures
The Group’s share of the net income (loss) of joint ventures:
Net income (losses) from continuing operations
(also the total comprehensive income (losses))
December 31,
2023
December 31,
2022
$
$
6,144
(18,066)
2023
2022
24,148
(2,451)
(iii) Although the Group is the single largest shareholder of some associates, after a comprehensive
assessment that the remaining shares of these associates are not concentrated in specific
shareholders, the Group is still not able to obtain more than half of the board seats, and it has
not obtained more than half of the voting rights of shareholders attending the shareholders’
meeting. The Group judges that it does not have absolute power and leading ability over the
relevant activities and variable remuneration of these associates, so it assesses that the Group
has no control over these associates.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
50
(iv) As of December 31, 2023 and 2022, the Group did not provide any investments accounted for
using equity method as collaterals for its loans.
(h) Acquisition of the subsidiary
In order to 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:
(i)
Consideration transferred
Cash
$
353,046
(ii) 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
$
$
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
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(iii) Goodwill arising from the acquisition of 56% ownership is as follows:
Consideration transferred
Non-controlling interests
Less: fair value of identifiable net assets
51
$
$
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.
(i)
Changes in subsidiaries’ equity
1)
Cancellation of subsidiaries’ restricted shares and conversion of convertible bonds
Arcadyan canceled 30 restricted shares in the year ended December 31, 2022. Whereas,
Arcadyan issued $3,892 new shares due to the conversion of convertible bonds during
2022, resulted in a decrease of 0.59% the ownership of the Group in Arcadyan in the
year ended December 31, 2022.
CBN canceled $364 and $469 restricted shares in the years ended December 31, 2023
and 2022, resulted in an increase of 0.32% and 0.43% the ownership of the Group in
CBN in the years ended December 31, 2023 and 2022.
2)
Issuance of new shares for cash of subsidiaries
The Group purchased newly issued shares of Aco Smartcare amounting to $69,083 at a
percentage different from its existing ownership percentage in July, 2023, resulting an
increase in the ownership of the Group in Aco Smartcare from 52.04% to 71.46%.
3)
Acquire additional equity in a subsidiary
In June 2022, the Group purchased a 0.12% stake in GLB from minority shareholders
with cash of $700, resulting an increase of the equity from 50.00% to 50.12%.
4)
The following summarizes the effect of changes in equity of the parent due to changes in
the ownership interest of subsidiaries:
Capital surplus – changes in ownership interest
in subsidiaries
Retained earnings
2023
2022
$
$
2,213
(16,652)
(14,439)
33,397
(2,260)
31,137
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
52
(j) Material non-controlling interests of subsidiaries
The material non-controlling interests of subsidiaries were as follows:
Subsidiaries
Arcadyan
Main operation place
Taiwan
Percentage of
non-controlling interests
December
December
31, 2022
31, 2023
%67
%67
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
Sales revenue
Net income
Other comprehensive income
Comprehensive income
Profit, attributable to non-controlling interests
Comprehensive income, attributable to non-controlling interests
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
December
31, 2023
31,358,657
$
December
31, 2022
33,543,752
7,190,002
6,476,775
(23,477,920)
(25,841,325)
(170,672)
(239,941)
14,900,067
13,939,261
10,137,657
9,503,906
2023
2022
51,158,122
47,167,749
2,389,606
1,915,053
2,543
283,981
2,392,149
2,199,034
1,591,414
1,248,748
1,593,103
1,435,919
5,589,936
2,529,050
(1,267,263)
(1,415,888)
(4,048,832)
(1,577,423)
$
$
$
$
$
$
$
$
Effect of exchange rate changes on cash and cash equivalents
3,579
73,033
Net increase (decrease) in cash and cash equivalents
$
277,420
(391,228)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
53
(k)
Property, plant and equipment
The cost, depreciation, and impairment of the property, plant and equipment of the Group for the
years ended December 31, 2023 and 2022, 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, 2023
$
2,485,718
21,658,458
36,234,090
13,405,317
2,295,702
76,079,285
Additions
Disposals and derecognitions
Reclassifications
-
-
-
1,052,882
350,442
1,411,529
4,151,768
6,966,621
(241,168)
(1,353,218)
(1,366,997)
-
(2,961,383)
1,509,753
1,371,671
176,912
(3,058,336)
-
Effect of movements in exchange rates
(15)
(32,968)
(781,106)
(401,822)
(61,431)
(1,277,342)
Balance on December 31, 2023
Balance on January 1, 2022
Acquisition through business combination
Additions
Disposals and derecognitions
Reclassifications
Effect of movements in exchange rates
Balance on December 31, 2022
Depreciation and impairments loss:
Balance on January 1, 2023
Depreciation for the period
Disposals and derecognitions
Effect of movements in exchange rates
Balance on December 31, 2023
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
Carrying amounts:
Balance on December 31, 2023
Balance on January 1, 2022
Balance on December 31, 2022
$
$
$
$
$
$
$
$
$
$
2,485,703
23,946,957
35,821,879
13,224,939
3,327,703
78,807,181
2,476,919
17,383,799
32,006,068
11,743,420
4,593,482
68,203,688
-
-
-
-
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)
3,025,276
1,491,632
8,459
1,289,824
1,181,719
152,137
554,985
(4,669,045)
-
313,732
3,348,719
2,485,718
21,658,458
36,234,090
13,405,317
2,295,702
76,079,285
-
-
-
-
-
-
-
-
-
-
-
12,555,957
24,546,694
10,168,423
1,215,405
3,609,728
1,661,074
(201,001)
(1,132,219)
(1,345,635)
(42,765)
(1,087,622)
(181,383)
13,527,596
25,936,581
10,302,479
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
-
-
-
-
-
-
-
-
-
-
-
47,271,074
6,486,207
(2,678,855)
(1,311,770)
49,766,656
41,213,324
73,395
6,130,845
(1,483,981)
1,337,491
47,271,074
2,485,703
10,419,361
9,885,298
2,922,460
3,327,703
29,040,525
2,476,919
6,394,277
10,751,918
2,773,768
4,593,482
26,990,364
2,485,718
9,102,501
11,687,396
3,236,894
2,295,702
28,808,211
As of December 31, 2023 and 2022, part of the Group’ s property, plant and equipment were
provided as collateral for long-term borrowings. Please refer to note (8).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
54
(l)
Right-of-use assets
The Group leases many assets including land and buildings, machinery and vehicles. Information
about leases for which the Group as a lessee is presented as below:
Cost:
Balance on January 1, 2023
Additions
Deductions
Effect of movements in exchange rates
Balance on December 31, 2023
Balance on January 1, 2022
Acquisition through business combination
Additions
Deductions
Effect of movements in exchange rates
Balance on December 31, 2022
Depreciation:
Balance on January 1, 2023
Depreciation for the period
Deductions
Effect of movements in exchange rates
Balance on December 31, 2023
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
Carrying amount:
Balance on December 31, 2023
Balance on January 1, 2022
Balance on December 31, 2022
Land
Buildings Machinery
Vehicles
and other
Total
$ 12,180,851
-
-
(3,394)
$ 12,177,457
859,993
$
-
11,216,024
-
3,320,227
1,142,577
(525,026)
70,321
4,008,099
3,664,030
39,959
299,827
(630,668)
104,834
$ 12,180,851
(52,921)
3,320,227
$
$
$
$
241,063
245,676
-
(324)
486,415
69,655
-
151,927
-
1,613,228
744,612
(475,682)
65,975
1,948,133
1,458,825
3,823
799,367
(523,734)
19,481
241,063
(125,053)
1,613,228
$ 11,691,042
$
790,338
$ 11,939,788
2,059,966
2,205,205
1,706,999
51,104
-
-
447
51,551
76,602
-
33,423
(57,348)
(1,573)
51,104
18,093
5,006
-
464
23,563
36,900
-
10,019
(27,382)
(1,444)
18,093
27,988
39,702
33,011
72,553
6,911
(39,714)
15,624,735
1,149,488
(564,740)
(20)
39,730
68,622
1,332
14,525
(9,818)
(2,108)
72,553
47,035
17,089
(39,280)
(86)
24,758
37,649
210
21,042
(9,635)
(2,231)
47,035
67,354
16,276,837
4,669,247
41,291
11,563,799
(697,834)
48,232
15,624,735
1,919,419
1,012,383
(514,962)
66,029
2,482,869
1,603,029
4,033
982,355
(560,751)
(109,247)
1,919,419
14,972
30,973
25,518
13,793,968
3,066,218
13,705,316
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 amounting to $224,321 and $130,854 and
the interest expenses of lease liabilities amounting to $44,010 and $26,049, which met the conditions
for capitalization under property, plant and equipment at the rate of 1.5%, had been recognized as
the cost of assets for the years ended December 31, 2023 and 2022, respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
55
(m) Short-term borrowings
The details of short-term borrowings were as follows:
Unsecured bank loans
Secured bank loans
Total
Unused credit line for short-term borrowings
Range of interest rates
December
31, 2023
58,965,354
December
31, 2022
74,823,426
8,917
9,000
58,974,271
74,832,426
$
$
$ 241,131,000
212,701,000
1.62%~8.78% 0.05%~8.37%
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:
December 31, 2023
Annual range of
interest rate
1.64%~2.25%
Maturity year
2024~2029
Amount
$
24,380,301
6.10%
2024
1.635%~2.25%
2025~2026
Currency
TWD
USD
TWD
Unsecured bank loans
Unsecured bank loans
Secured bank loans
Less: current portion
Total
Unused credit lines for
long-term borrowings
Unsecured bank loans
December 31, 2022
Currency
TWD
Annual range of
interest rate
1.48%~2.06%
Maturity year
2023~2026
Secured bank loans
TWD
1.25%~2.00%
2025~2026
Less: current portion
Total
Unused credit lines for
long-term borrowings
For information on the Group’s interest risk, foreign currency risk and liquidity risk, please refer to
note (6)(aa).
(Continued)
1,842,300
448,016
(11,385,027)
15,285,590
21,773,000
Amount
30,525,000
612,122
(19,462,800)
11,674,322
13,018,000
$
$
$
$
$
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
56
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
Accumulated converted amount
Repayments of bonds payable
Balance of corporate bonds payable as of the reporting date
Expired conversion options included in equity components
(classified as capital surplus and non-controlling interests)
Interest expenses
December
31, 2023
-
-
-
-
December
31, 2022
1,000,000
(992,600)
(7,400)
-
361
2023
-
2022
361
763
$
$
$
$
The effective interest rate of the first issued convertible corporate bonds was 1.3284%.
(ii) The main terms of issuing the above-mentioned convertible corporate bonds was as follows:
1)
2)
3)
Coupon rate: 0%
Duration: three years (June 6, 2019~June 6, 2022)
Repayment
Put option and call option are excluded from the issuance of convertible corporate bonds.
Except that the bondholders convert the bonds to Arcadyan’ s common shares or the
bonds are repurchased and cancelled by Arcadyan from the securities firm’ s business
office, the bonds will be repaid in cash at par value when the bonds expired.
4)
Terms of conversion
a)
The bondholder may opt to have its bonds converted into the Arcadyan’s common
shares, with the approval of Taiwan Depository & Clearing Corporation through
securities firms, at any time between three months after the issuance date
(September 7, 2019) and the day before the maturity day (June 6, 2022), except for
the following:
- The closing period in accordance with the applicable law;
- The period starting from the first day of the first fifteen working days prior to
the date of record for determination wherein the shareholders are entitled to
receive the distributions or rights to subscribe for new shares in a capital
increase for cash, and ends on the date of record for the distribution of the
rights/benefits;
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
57
- The period starts from the date of record of the capital decrease and ends on the
date prior to the trading of the reissuance shares after the capital decrease.
b)
Conversion price is determined as NT$98.3 per share upon issuing. Arcadyan paid
cash dividends and issued new shares for cash in 2019; therefore, the conversion
price has been adjusted to $93 per share. Arcadyan distributed cash dividends to
common stocks shareholders with retained earnings 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, the convertible corporate bonds were converted into ordinary shares of
Arcadyan for $321,100 with a par value of $38,920, and the capital surplus were recognized
for $296,640 (including the stock option conversion premium of $15,626 and the unamortized
discounts on corporate bonds payable of $1,166).
(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, 2023
$
$
2,001,766
8,329,451
December
31, 2022
1,813,555
9,533,209
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
2023
2022
55,711
44,563
-
2,528
100,106
186,825
$
$
$
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
2023
2,270,284
$
2022
2,656,206
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).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
58
(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 1~5
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, 2023
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, 2023
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
Warranties
734,061
$
420,336
(322,193)
(44,813)
5
$
$
787,396
1,204,115
2,786
365,410
(349,378)
(488,899)
27
$
734,061
Provisions relate to sales of products are assessed based on historical experience, management’ s
judgment and other known reasons. Such allowances are recognized as a deduction of sales revenue
in the same period in which sales are made. The aforementioned provisions are expected to settle
over the next year.
(r)
Employee benefits
(i) Defined benefit plans
Reconciliation of defined benefit obligations at present value and plan assets at fair value were
as follows:
Present value of defined benefit obligations
Fair value of plan assets
Net defined benefit liabilities
December 31,
2023
(1,414,113)
$
December 31,
2022
(1,433,878)
762,841
773,859
$
(651,272)
(660,019)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
59
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 $727,635 (excluding the ending balance of interest rectivable) as of
December 31, 2023. 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
$
(1,433,878)
2023
Benefit paid by the plan
Current service costs and interest
Remeasurements of net benefit liabilities
57,335
(26,943)
(11,833)
Amount increased through business
-
combination
2022
(1,554,902)
64,567
(16,068)
106,275
(32,306)
Effect of movements in exchange rates
1,206
(1,444)
Defined benefit obligations on December 31
$
(1,414,113)
(1,433,878)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
60
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:
2023
2022
Fair value of plan assets on January 1
$
773,859
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:
12,035
5,950
28,030
(57,335)
-
302
762,841
732,869
5,073
56,929
28,460
(64,567)
14,425
670
773,859
2023
2022
Current service cost
Net interest on the net defined benefit liability
(asset)
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
$
$
$
$
4,210
10,698
14,908
608
846
3,605
9,849
14,908
4,720
6,275
10,995
516
627
2,714
7,138
10,995
5)
Actuarial assumptions
The following were the Group’s principal actuarial assumptions at the reporting date:
Discount rate
December 31,
2023
1.40%~1.625%
December 31,
2022
1.70%~1.75%
Future salary increasing rate
3.00%
3.00%
The expected allocation payment made by the Group to the defined benefit plans for the
one year period after the reporting date is $28,658.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
61
The weighted-average lifetime of the defined benefit plan is 7.6~12.3 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, 2023
Discount rate
Future salary increasing rate
December 31, 2022
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(25,220)
26,959
(27,794)
28,198
27,518
(24,817)
28,712
(27,427)
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 $569,176 and $486,231 for the years ended December 31,
2023 and 2022, 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 $939,545 and $1,321,190 for the years ended December
31, 2023 and 2022, respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
62
(s)
Income taxes
(i)
Income tax expenses
1)
The amount of income tax for the years ended December 31, 2023 and 2022, was as
follows:
2023
2022
Current tax expense
Recognized during the period
$
3,457,832
Undistributed earnings additional tax
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary
differences
Income tax expense
468,887
(507,301)
3,419,418
3,388,485
171,404
(728,549)
2,831,340
(659,671)
$
2,759,747
(648,737)
2,182,603
2)
The amount of income tax recognized in other comprehensive income for the years ended
December 31, 2023 and 2022, was as follows:
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
$
$
$
$
2023
2022
521
32,313
170,454
170,975
(81,430)
(49,117)
(2,168)
6,712
4,544
(2,464)
(9,562)
(12,026)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
63
3)
The income tax expense that was reconciled between the actual income tax expense and
profit before tax for the years ended December 31, 2023 and 2022, 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 and others
Undistributed earnings additional tax
2023
11,890,425
3,610,034
$
$
2022
10,724,130
3,142,341
(153,740)
(132,659)
(507,301)
(803,544)
278,070
468,887
(442,560)
(98,000)
(728,549)
503,909
(365,942)
171,404
Income tax expense
$
2,759,747
2,182,603
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2023 and 2022 were as follows:
Allowance
for
obselescence
loss and
inventory
valuation
Defined
benefit
plans
Foreign
currency
translation
differences
of foreign
operations
and others
Total
Unrealized
exchange
losses, net
Refund
liabilities
$
999,285
762,616
286,548
150,248
422,588 204,140
3,456
(27,633)
481,217 2,393,778
338,512 1,227,199
Deferred tax assets:
Balance on January 1, 2023
Recognized in profit or loss
Recognized in other
comprehensive income
Balance on December 31,
-
$ 1,761,901
-
436,796
-
(521)
394,955 207,075
(4,544)
(5,065)
815,185 3,615,912
2023
Balance on January 1, 2022
Recognized in profit or loss
Recognized in other
comprehensive income
Acquisition of subsidiaries
Balance on December 31,
2022
477,006
522,279
195,296
91,252
202,499 234,791
(3,140)
220,089
536,932 1,646,524
749,046
(81,434)
-
-
$
999,285
-
-
286,548
-
-
(32,313)
4,802
422,588 204,140
12,026
13,693
(20,287)
18,495
481,217 2,393,778
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
64
Deferred tax liabilities:
Balance on January 1, 2023
Recognized in profit or loss
Recognized in other comprehensive income
Balance on December 31, 2023
Balance on January 1, 2022
Recognized in profit or loss
Recognized in other comprehensive income
Acquisition of subsidiaries
Balance on December 31, 2022
(iii)Unrecognized deferred tax assets
Unrealized
exchange
gains, net
Gain on
valuation of
financial assets
and others
Total
$
$
$
(755,031)
(486,802)
-
(492,311)
(1,247,342)
(80,726)
(170,454)
(567,528)
(170,454)
(1,241,833)
(743,491)
(1,985,324)
(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)
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, 2023
$ 1,605,419
$ 1,011,018
December
31, 2022
1,674,595
996,446
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, 2023, the tax effects on loss carryforward that have not been used were as
follows:
Year of loss
2014 (Assessed)
2015 (Assessed)
2016 (Assessed)
2017 (Assessed)
2018 (Assessed)
2019 (Assessed)
2020 (Assessed)
2020 (Filed)
2021 (Filed/Assessed)
2021 (Filed)
2022 (Filed)
2022 (Filed)
2023 (Estimated)
2023 (Estimated)
Total
Expiry year
2024
2025
2026
2027
2028
2029
2030
2025
2031
2026
2032
2027
2033
2028
$
$
Deductible amount
24,986
420,310
1,373,877
918,086
554,750
349,024
130,501
20,484
51,571
126,335
317,761
277,800
384,855
8,327
4,958,667
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
65
(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, 2023 and 2022, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $3,070,351 and
$2,618,241, respectively.
As of December 31, 2023 and 2022, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $71,287,552
and $68,023,499, 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 return
of Shennona TW, Gempal, Hong Jinn, and Hippo Screen through 2022, of UCGI, Arcadyan,
HengHao, Palcom, Panpal, Hong Ji, Unicore, Raycore, Ripal, CBN, Zhi-Bao, TTI, Mactech,
Aco Healthcare, Starmems, GLB, Poindus Systems and Poindus Investment through 2021, of
Rayonnant Technology through 2020.
(vi) Global minimum top-up tax
Some countries that the Group operates in have enacted new legislation to implement the
global minimum top-up tax. However, the newly enacted tax legislation has not yet been
effective, the Group is closely monitoring developments related to the implementation of the
international tax reforms introducing a global minimum top-up tax in the countries which it
operates in. As of December 31, 2023, the application of this new tax law was assessed to have
no material impact on the Group. The Group recognizes the supplemental tax as current
income tax when it is actually incurred, and the Group applies the temporary mandatory relief
from deferred tax related to the supplemental tax; please refer to Note (4).
(t)
Capital and other equities
(i) Ordinary shares
As of December 31, 2023 and 2022, 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. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
66
(ii) Capital surplus
The balances of capital surplus were as follows:
Additional paid-in capital
Treasury share transactions
December
31, 2023
December
31, 2022
$
1,018,088
1,898,477
2,781,989
2,721,968
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
158,285
36,766
156,072
for using equity method
275,787
265,297
$
4,270,915
5,078,580
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, 2023 and March
15, 2022, approved to distribute the cash of $881,429 and $1,762,859 (representing 0.2 and 0.4
New Taiwan Dollars per share), by using capital surplus.
The Company’ s Board of Directors meeting held on February 29, 2024, approved to distribute
the cash 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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
67
The lifecycle of the industry of the Company is in the growing stage. To consider the need of
the Company for the future capital, capital budget, long-term financial planning, domestic and
foreign competition, the need of shareholders for cash flow and other factors, if there is any
profit after close of books, the dividend and bonus to be distributed to shareholders shall not be
less than thirty percent of profit after tax for such year and the cash dividend allocated by the
Company each year shall not be lower than ten percent of the total dividend (including cash
and share dividend) for such year.
According to the law, when there is a deduction from stockholders’ equity (excluding treasury
stock and unearned employee benefit) during the year, an amount equal to the deduction item
is set aside as a special reserve before the earnings are appropriated. A special reserve is made
available for earning distribution only after the deduction of the related shareholders’ equity
has been reversed.
1)
Legal reverse
When a company incurs no loss, it may, in pursuant to a resolution to be adopted by the
shareholders’ meeting as required, distribute its legal reserve by issuing new shares and
distributing stock dividends or distributing cash to shareholders. Only the portion of the
legal reserve which exceeds 25% of the paid-in capital may be distributed.
2)
Special reverse
During earnings distribution, if the Company has already reclassified a portion of
earnings to special reserve, it shall make supplemental allocation of special reserve for
any difference between the amount of the current-period total net reduction of other
shareholders’ equity and the amount it has already allocated. An equivalent amount of
special reserve shall be allocated from the after-tax net profit in the period, plus items
other than after-tax net profit in the period, that are included in the undistributed current-
period earnings and the undistributed prior-period earnings. A portion of undistributed
prior-period earnings shall be reclassified to special earnings reserve to account for
cumulative changes to the net reduction of other shareholders’ equity pertaining to prior
periods. Amounts of subsequent reversals pertaining to the net reduction of other
shareholders’ equity shall qualify for additional distributions.
3)
Earnings distribution
Distribution for the earnings of 2022 and 2021 were approved in the meeting of the
Board of Directors held on March 15, 2023 and March 15, 2022, respectively. The
relevant information was as follows:
2022
2021
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed
to common shareholders
$
1.0
4,407,147
1.6
7,051,435
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
68
Distribution for the earnings of 2023 was approved in the meeting of the Board of
Directors held on February 29, 2024. The relevant information was as follows:
2023
Amount
per share
Total
amount
Cash dividends distributed to common shareholders from
the unappropriated earnings
$
1.0
4,407,147
(iv) Treasury stock
The subsidiaries of the Company did not sell the ordinary shares of the Company in the years
ended December 31, 2023 and 2022. As of December 31, 2023, 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
39.85 and 23.05 New Taiwan dollars per share as of December 31, 2023 and 2022,
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
$
$
$
$
(1,469,711)
(376,004)
202,049
(103,664)
(1,747,330)
(8,744,705)
7,183,714
9,700
81,580
(1,469,711)
(461,103)
1,352,493
354,102
117,980
1,363,472
537,830
(590,539)
(420,019)
11,625
(461,103)
Balance on January 1, 2023
The Company
Subsidiaries
Associates
Balance on December 31, 2023
Balance on January 1, 2022
The Company
Subsidiaries
Associates
Balance on December 31, 2022
Others
Total
-
-
-
-
(12,290)
8,854
(3,436)
125
(12,415)
(12,290)
(1,943,104)
976,489
565,005
14,316
(387,294)
(8,206,750)
6,593,175
(422,734)
93,205
(1,943,104)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
69
(u)
Share-based payment
(i) Arcadyan – restricted shares
At the meeting held on June 21, 2018, the Arcadyan’ s Board of Directors decided to issue
4,500 thousand shares of restricted shares to Arcadyan full-time employees who meet certain
requirements. The restricted shares have been registered, with and approved by, the Securities
and Futures Bureau of FSC. The Board of Directors decided to issue all the restricted shares on
November 6, 2018, which is also the effective date of the share issuance.
3,500 thousand 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 years, 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:
Outstanding shares on January 1
Canceled during the period
The number vested in this period
Outstanding shares on December 31
Unit: in thousands of shares
2022
1,283
(30)
(1,253)
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
70
The compensation cost related to the restricted shares amounted to $2,396 for the year ended
December 31, 2022.
(ii) CBN – 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.
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
Share vested in this period
Shares canceled in this period
Outstanding shares on December 31
Unit: in thousands of shares
2023
2022
-
666
(364)
302
1,500
(365)
(469)
666
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 generated capital surplus – restricted
shares $31,050. Until December 31, 2023 and 2022, the balance of unearned remuneration for
employees was $3,010 and $11,213, respectively.
The compensation cost related to the restricted shares amounted to $(2,972) and $19,629 for
the year ended December 31, 2023 and 2022, respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
71
(v) Earnings per share
The Group’s basic and diluted earnings per share are calculated as follows:
2023
2022
Basic earnings per share:
Profit attributable to ordinary shareholders of the Company
$
7,667,627
7,288,292
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)
$
7,667,627
7,288,292
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
26,813
43,369
Weighted-average number of ordinary shares (after adjustment of
potential diluted ordinary shares) (in thousands)
4,383,943
4,400,499
(w) Revenue from contracts with customers
(i) Disaggregation of revenue
Primary geographical markets:
United States
China
Netherlands
Others
Major products:
5C related electronics products
Others
2023
Strategically
Integrated
Product
Segment
IT Product
Segment
Total
$
353,353,336
20,843,279
374,196,615
137,476,920
59,882,231
344,844,191
895,556,678
183,945
648,542
137,660,865
60,530,773
29,482,356
374,326,547
51,158,122
946,714,800
892,818,068
49,702,649
942,520,717
2,738,610
1,455,473
4,194,083
895,556,678
51,158,122
946,714,800
$
$
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
72
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
(ii) Contract balances
4,811,274
1,358,421
6,169,695
$ 1,026,078,166
47,167,749
1,073,245,915
Notes and accounts receivable (including
related parties)
December
31, 2023
$ 197,692,424
December
31, 2022
195,145,265
January 1,
2022
294,057,802
Less: allowance for impairment
(3,977,808)
(3,924,544)
(3,891,948)
Total
Contract liabilities
$ 193,714,616
191,220,721
290,165,854
$
767,327
784,238
1,065,954
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, 2023 and 2022 that were
included in the balance of contract liability at the beginning of the period was $784,238 and
$1,065,954, 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
73
(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 thereof and to directors as compensations in an amount of not more than two percent 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 $814,143 and $750,945, and
directors’ compensation of $43,051 and $39,790 for the years ended December 31, 2023 and 2022,
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 2023 and 2022.
There is no differences between the amount estimated and recognized in the financial statements in
2022. 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 for the years ended December 31, 2023 and 2022, were as
follows:
Interest income from bank deposits
Other interest income
(ii) Other income
2023
4,668,156
38,771
2022
3,077,815
12,111
4,706,927
3,089,926
$
$
The other incomes for the years ended December 31, 2023 and 2022, were as follows:
Dividend revenue
Other revenue
2023
2022
$
$
148,092
308,769
456,861
128,597
523,829
652,426
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
74
(iii) Other gains and losses
The other gains and losses for the years ended December 31, 2023 and 2022, were as follows:
Losses on financial assets and liabilities at fair value through
$
profit or loss, net
Foreign currency exchange gains, net
Gains on disposal of property, plant, and equipment, and
2023
(477,703)
2022
(765,115)
693,870
43,977
2,121,647
7,086
intangible assets
Gains on disposal of investments, net
Others
-
790
2,568
(2,345)
$
260,934
1,363,841
(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, 2023 and 2022, were as follows:
Cash flow hedge:
(Losses) gains from current period
Less: reclassification of (losses) gains included in profit or loss
Profit (loss) recognized in other comprehensive income
$
$
(8,754)
(42,317)
33,563
82,853
130,662
(47,809)
2023
2022
(aa) Financial instruments
(i)
Credit risk
1)
The carrying amount of financial assets represents the maximum amount exposed to
credit risk.
The Group’ s customers are mainly from the high-tech industry. The Group does not
concentrate on a specific customer and the sales regions are widely spread, thus there
should be no concern on the significant concentrations of accounts receivable credit risk.
And in order to mitigate accounts receivable credit risk, the Group constantly assesses
the financial status of the customers.
2)
Receivables and debt securities
Information of exposure to credit risk of notes and accounts receivable please refer to
note (6)(e).
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
75
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, 2023.) 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, 2023 and 2022 were
as follows:
Balance on January 1, 2023
Impairment losses recognized (reversed)
Balance on December 31, 2023
Balance on January 1, 2022
Impairment losses recognized (reversed)
Balance on December 31, 2022
(ii) Liquidity risk
Other
receivables
2,756
11,792
14,548
2,973
(217)
2,756
$
$
$
$
The following are 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, 2023
Non-derivative financial liabilities
Secured borrowings
Unsecured borrowings
Lease liabilities－current and
non-current
Notes and accounts payable
Other payables
Derivative financial liabilities
$
456,933
83,345,655
(456,933)
(85,187,955)
(175,584)
(70,183,714)
(207,616)
(3,500,000)
(73,733)
(11,504,241)
10,331,217
158,995,984
30,464,866
11,643,155
(158,995,984)
(30,464,866)
2,092,118
(158,995,984)
(30,464,866)
Forward exchange contracts:
164,535
Outflow
Inflow
Forward exchange contracts used
(4,660,904)
4,497,428
(4,660,904)
4,497,428
for hedging:
Outflow
Inflow
14,246
(1,087,360)
1,076,861
(263,636,558)
(1,087,360)
1,076,861
(257,902,005)
$ 283,773,436
5,657,702
3,893,335
-
-
-
-
-
-
-
-
-
-
-
-
1,950,086
(7,684,639)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
76
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
Outflow
Inflow
Forward exchange contracts for
hedging:
Outflow
Inflow
Carrying
Amount
Contractual
cash flows Within 1 year
1 ~ 2 years
Over 2 years
$
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)
(6,386,190)
6,176,658
(6,386,190)
6,176,658
(6,783,542)
(3,965,389)
-
-
-
-
-
-
-
-
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
Forward exchange contracts:
62,527
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, 2023
Exchange rate
TWD
Foreign currency
December 31, 2022
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
$
7,686,610
9,030
26,099
3,283,442
30.705
7.0953
33.98
0.1409
236,017,360
11,446,943
277,266
886,844
12,508
65,974
14,205,268
3,598,880
30.71
6.9571
32.72
0.1437
351,535,620
384,121
2,158,669
15,881,955
3,237,791
0.8976
2,906,241
652,264
0.8882
579,341
7,606,810
1,719
177,908
2,953
3,763,607
30.705
7.0953
4.8413
33.98
0.1409
233,567,101
10,358,052
52,782
5,462,665
100,343
1,087
194,543
21,492
16,282,623
3,522,857
30.71
6.9571
5.2177
32.72
0.1437
318,095,777
33,382
5,974,416
703,218
15,546,463
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
77
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, 2023 and 2022,
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,
2023
December 31,
2022
$
122,513
(122,513)
1,671,992
(1,671,992)
11,224
(11,224)
(273,133)
273,133
39,325
(39,325)
(103,868)
103,868
17,537
(17,537)
(298,721)
298,721
72,773
(72,773)
16,775
(16,775)
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, 2023 and 2022,
the foreign exchange gains, including both realized and unrealized, amounted to
$693,870 and $2,121,647, respectively.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
78
(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, 2023 and 2022, 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
2023
$
52,030
2022
58,941
(52,030)
(58,941)
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
79
December 31, 2023
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 in domestic markets
Stocks listed in foreign markets
Stocks unlisted in domestic markets
Stocks unlisted in 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
Financial liabilities used for hedging
Financial liabilities measured at amortized
cost
Short-term borrowings
Notes and accounts payable
Notes and accounts payable to related
parties
Other payables and dividends payable
Lease liabilities－current and non-current
Long-term borrowings current portion
Long-term borrowings
Deposits received
Subtotal
Total
52,062
1,217,512
1,269,574
4,349,429
2,906,241
1,454,947
405,391
30,358,572
39,474,580
72,479,480
156,921,748
6,434,296
2,372,980
717,036
636,632
359,031
239,921,203
$ 280,665,357
$
164,535
14,246
58,974,271
148,398,334
10,597,650
30,464,866
10,331,217
11,385,027
15,285,590
482,708
285,919,663
$ 286,098,444
-
-
4,349,429
2,906,241
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52,062
-
52,062
-
1,217,512
1,217,512
-
-
-
-
30,358,572
-
-
-
-
-
-
-
164,535
14,246
-
-
-
-
-
-
-
-
-
-
1,454,947
405,391
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,349,429
2,906,241
1,454,947
405,391
30,358,572
-
-
-
-
-
-
-
164,535
14,246
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
80
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 in domestic markets
Stocks listed in foreign markets
Stocks unlisted in domestic markets
Stocks unlisted in 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 and dividends payable
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
81
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
82
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 year ended December 31, 2022.
The Group held an investment in equity of Airoha Technology Corp., which was
classified as fair value through other comprehensive income, with a fair value of
$124,054 and $114,137, as of December 31, 2023 and 2022, respectively. The fair value
of the investment was previously categorized as Level 3 at December 31, 2022. This was
because the shares were not listed on the exchange market and was measured by
significant unobservable inputs. In October 2023, Airoha Technology Corp. listed its
equity shares on an exchange and they are currently actively traded in the market.
Because the equity shares now have a published price quotation in an active market, the
fair value measurement was transferred from Level 3 to Level 1 as of December 31,
2023.
The Group held an investment in equity of Taiwan Star with a fair value of $420,847,
which was classified as a financial asset at fair value through other comprehensive
income as of December 31, 2022. The investment was categorized as level 3 as of
December 31, 2022, because the shares were not listed on the exchange market and were
measured by significant unobservable inputs. On December 1, 2023, Taiwan Star was
absorbed and merged by Taiwan Mobile, and Taiwan Star’s shares were exchanged for
Taiwan Mobile’ s shares, wherein they were actively traded, thus their fair value
measurement was transferred from Level 3 to Level 1 as of December 31, 2023.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
83
5)
Changes in Level 3
The change in Level 3 at fair value in the years ended December 31, 2023 and 2022,
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, 2023
$
558,909
2,048,900
2,607,809
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds from capital reduction of
investments
Transferred out from Level 3
Effect of changes in exchange rates
Balance on December 31, 2023
Balance on January 1, 2022
$
$
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds from liquidation of
investments
44,367
-
628,018
-
-
-
-
(13,782)
1,217,512
259,778
(17,543)
323,888
(47,921)
(3,992)
(442,884)
(110)
1,860,338
2,189,125
(23,672)
-
323,183
-
-
-
(405,953)
264,057
(10,028)
(2,010)
13,709
44,367
(17,543)
951,906
(47,921)
(3,992)
(442,884)
(13,892)
3,077,850
2,448,903
(23,672)
(405,953)
587,240
(10,028)
(2,010)
13,329
Effect of changes in exchange rates
Balance on December 31, 2022
$
(380)
558,909
2,048,900
2,607,809
For the years ended December 31, 2023 and 2022, total gains and losses that were
included in “ other gains and losses, net” and “unrealized gains and losses from equity
instruments at fair value through other comprehensive income” were as follows:
Total gains and losses recognized:
In profit or loss before tax (as “other gains and
losses”)
In other comprehensive income (as “unrealized gains
and losses from equity instruments at fair value
through other comprehensive income”)
$
$
2023
2022
44,367
(23,672)
35,635
(409,229)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
84
6)
The quantified information for significant unobservable inputs (Level 3) used in fair
value measurement
The Group’s financial instruments that use Level 3 input to measure fair values include
financial assets at fair value through other comprehensive income and financial assets at
fair value through profit or loss, financial assets at fair value through profit or loss.
Most of fair value measurements of the Group which are categorized as equity
investment into Level 3 have several significant unobservable inputs. Significant
unobservable inputs of equity investments without quoted price are independent of each
other.
The quantified information for significant unobservable inputs was as follows:
Item
Financial assets at fair
value through other
comprehensive
income－equity
investment without an
active market
Valuation
technique
Comparable
market approach
(Price-Book ratio
method and
Earnings
multiplier
method)
Significant
unobservable inputs
Price-Book ratio
multiples (0.75~2.09
and 1.54~2.89,
respectively, on
December 31, 2023 and
2022)
Multiples of earnings
(14.33 and 14.33~17.25,
respectively, on
December 31, 2023 and
2022)
Lack-of-Marketability
discount rate (Both are
40%~65% on December
31, 2023 and 2022)
Net asset value
method
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
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
Inapplicable
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
85
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, 2023
Financial assets at fair
value through other
comprehensive
income
Move up
or down
Other comprehensive income
Unfavorable
change
Favorable
change
5%
$
14,588
15,144
December 31, 2022
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%
$
$
$
$
$
1,486
8,633
1,500
8,063
8,394
11,549
5,808
9,432
5,820
6,266
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.
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
86
The following tables present the aforesaid offsetting financial assets and financial
liabilities.
Unit: thousands of New Taiwan Dollars / thousands of US Dollars
December 31, 2023
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 $
378,545,272
378,545,272
(USD
12,328,457 )
(USD 12,328,457 )
Net amount of financial
assets presented in
the balance
sheet
(c)=(a)-(b)
-
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)
-
(ab) Financial risk management
(i) Overview
The Group is exposed to the following risks arising from financial instruments:
1) Credit risk
2)
Liquidity risk
3) Market risk
In this note expressed the information on risk exposure and objectives, policies and procedures
of risk measurement and management of the Group. For detailed information, please refer to
the related notes of each risk.
(ii) Structure of risk management
The Group’ s finance management department provides business services for the overall
internal department. It sets the objectives, policies and processes for managing the risk and the
methods used to measure the risk arising from both the domestic and international financial
market operations.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
87
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, 2023
and 2022, the Group did not provide any guarantees to other companies besides its
subsidiaries.
(iv) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations
associated with its financial liabilities which be settled by delivering cash or another financial
asset.
The Group manages and maintains sufficient cash and cash equivalents so as to cope with its
operations and mitigate the effects of fluctuations in cash flows. The Group’ s management
supervises the banking facilities and ensures in compliance with the terms of the loan
agreements. Please refer to notes (6)(m) and (6)(n) for unused credit lines of short-term and
long-term borrowings as of December 31, 2023 and 2022.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
88
(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.
The Group monitors the capital structure by way of periodical review the debt ratio. As of December
31, 2023 and 2022, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December
31, 2023
$ 303,998,121
December
31, 2022
326,074,590
$ 436,770,974
453,484,433
70%
72%
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, 2023, there were no changes in the Group’s approach of capital management.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
89
(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, 2023 and 2022 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
Long-term borrowings
Lease liabilities
January 1,
2023
$ 74,832,426
Cash flow
(15,858,155)
Other
non-cash
changes
-
31,137,122
(4,466,505)
-
December
31, 2023
58,974,271
26,670,617
11,346,764
(2,114,467)
1,098,920
10,331,217
Deposits received and others
574,787
(35,568)
(44,797)
494,422
Total liabilities from financing activities $ 117,891,099
(22,474,695)
1,054,123
96,470,527
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
(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.
An associate
An associate
An associate
An associate
An associate
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
90
Name of related party
Relationship with the Group
Therapeutics Co., Ltd. (“ARCE”)
Raypal Biomedical Co., Ltd. (“Raypal”)
Hong Ya Technology Co., Ltd. (“Hong Ya”)
Kinpo Group Management Service Company (“Kinpo
An associate
An associate
An associate
An associate
Group Management Service”)
Acbel Polytech Inc. and its subsidiaries (“Acbel”)
The Chairman of the Board is the first
degree of kinship of the Chairman of the
Company
Cal-Comp Electronics (Thailand) Public Company
The same Chairman of the Board with the
Limited and its subsidiaries (“Cal-Comp”)
Company
Kinpo
The same Chairman of the Board with the
Company
(b) Transactions with key management personnel
Key management personnel remunerations comprised:
Short-term employee benefits
Post-employment benefits
Share-based payments
2023
800,053
2022
699,852
7,405
1,524
7,534
11,328
808,982
718,714
$
$
There are no termination benefits and other long-term benefits. Please refer to note (6)(u) for
explanations related to share-based payments.
(c)
Significant related-party transactions
(i)
Sale of goods to related parties
The amounts of significant sales transactions between the Group and related parties were as
follows:
Associates
Other related parties
2023
2022
$
$
113,147
15,124
128,271
208,846
9,744
218,590
Sales prices for related parties were similar to those of the third-party customers. The
collection period was 60~120 days for related parties.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
91
(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
2023
2,933,852
$
2022
4,038,193
46,879,824
32,748,290
$
49,813,676
36,786,483
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
(iv) Payables to related parties
Related party
categories
December
31, 2023
December
31, 2022
Associates
Other related parties
Associates
Other related parties
$
$
26,613
6,407,683
1,514
64
6,435,874
44,795
4,371,278
1,321
-
4,417,394
The payables arising from the transactions mentioned above and other on behalf rendering of
services of other related parties were as follows:
Account
Related party
categories
December
31, 2023
December
31, 2022
Notes and accounts payable
Associates
$
609,875
774,001
Notes and accounts payable
Other related parties
9,987,775
8,927,031
Other payables
Other payables
Associates
Other related parties
137
21,788
96
20,327
$ 10,619,575
9,721,455
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
92
(v)
Property transactions - Acquisitions of financial assets
The acquisitions of financial assets from related parties are summarized as follows:
Relationship
Other related party–
Acbel
Other related party–
Cal-Comp
Item
Acquisition of financial assets
at fair value through other
comprehensive income
Acquisition of financial assets
at fair value through other
comprehensive income
For the years ended December 31, 2023
Number of
shares
12,340
thousand
shares
1,249,470
thousand
shares
Object
Common stocks of
Acbel issued through
cash capital increase
Common stocks of
Cal-Comp issued
through cash capital
increase
Acquisition
price
478,800
1,718,266
(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
(9) Commitments and contingencies:
The details of commitments and contingencies were as follows:
December
31, 2023
$
43,949
-
717,036
463,806
800
December
31, 2022
59,707
534,153
269,003
485,364
800
358,231
$ 1,583,822
969,160
2,318,187
(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 joined the Group. This is deemed as an act
of violation according to the Trade Secret Law and Copyright Law. The Group engaged lawyers to
defend its right on this matter. Currently, the case is still in progress in Taipei District Court;
therefore, the Group cannot make any reasonable estimation regarding the possible impact on its
business operation.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
93
(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, 2023 and 2022, the Group’ s signed commitments to purchase property, plant
and equipment amounted to $3,346,545 and $967,396, 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
2023
Operating
expenses
Total
Operating
costs
Salary
Labor and health insurance
Pension
Others
Depreciation
Amortization
12,195,343
954,729
843,056
3,090,596
6,206,119
51,379
16,227,473
1,157,263
680,573
768,330
1,068,150
547,878
28,422,816
2,111,992
1,523,629
3,858,926
7,274,269
599,257
16,187,550
1,162,379
1,173,680
3,359,696
5,794,829
71,405
2022
Operating
expenses
15,215,703
1,022,635
644,736
718,760
1,187,517
490,657
Total
31,403,253
2,185,014
1,818,416
4,078,456
6,982,346
562,062
(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, 2023:
(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, 2023 (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
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
94
(vi) Disposals of individual real estate with amount exceeding the lower of NT$300 million or 20%
of the capital stock: None
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of
NT$100 million or 20% of the capital stock: Please refer to Table 6
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 7
(ix) Trading in derivative instruments: Please refer to notes (6)(b) and (6)(d)
(x) Business relationships and significant intercompany transactions: Please refer to Table 8
(b)
Information on investees: Please refer to Table 9
(c)
Information on investment in mainland China: Please refer to Table 10
(d) Major shareholders:
Shareholder’s Name
Cathay MSCI Taiwan ESG Sustainability High Dividend
Yield ETF
Shareholding
Shares
Percentage
297,470,000
%6.74
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
95
(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.
The operating segment information was as follows:
For the year ended December 31, 2023
Information
technology
product segment
Strategy
integrated
product segment
Adjustment and
elimination
Total
Revenue
Revenue from external
$
895,556,678
51,158,122
customers
Interest revenue
Total revenue
Interest expense
$
$
Deprectation and amortization
Investment gain (loss)
Other significant non-cash
items:
4,547,937
158,990
900,104,615
51,317,112
4,917,905
7,031,024
(467,077)
134,467
842,502
-
-
Impairment of assets
-
Reportable segment profit
$
8,623,476
3,266,949
Reportable segment assets
Reportable segment
liabilities
-
-
-
-
-
-
-
-
946,714,800
4,706,927
951,421,727
5,052,372
7,873,526
(467,077)
-
11,890,425
436,770,974
303,998,121
$
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
96
For the year ended December 31, 2022
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:
$
$
$
1,026,078,166
47,167,749
2,998,570
91,356
1,029,076,736
47,259,105
3,131,824
6,810,232
(272,824)
113,877
734,176
-
-
Impairment of assets
9,431
Reportable segment profit
$
8,246,412
2,477,718
Reportable segment assets
Reportable segment
liabilities
(c)
Products information
The infromation of revenue from external customers:
Products and services
5C related electronic products
Others
-
-
-
-
-
-
-
-
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
$
$
2023
942,520,717
2022
1,067,076,220
4,194,083
6,169,695
946,714,800
1,073,245,915
$
$
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
97
(d) Geographic information
Stated below are the geographic information on the Group’s sales presented by destination of sales
and non-current assets presented by location.
(i)
Revenue from external customers:
Country
United States
China
Netherlands
Others
(ii) Non-current assets:
Country
Taiwan
Vietnam
China
Others
2023
374,196,615
$
2022
444,691,177
137,660,865
133,452,679
60,530,773
68,709,105
374,326,547
426,392,954
$
946,714,800
1,073,245,915
$
2023
21,318,777
12,135,554
11,710,811
1,283,752
2022
20,877,772
10,671,422
13,812,658
989,914
$
46,448,894
46,351,766
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
E Company
F Company
A Company
2023
2022
$
379,263,553
460,236,878
125,647,532
102,969,721
121,450,902
170,398,727
95,644,980
96,621,806
$
722,006,967
830,227,132
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
98
Table 1 Loans to other parties:
(December 31, 2023)
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
0 The
CEP
Company
1 CIH
CEP
2 CPC
CIC
3 CIT
CCI Nanjing
3 CIT
3 CIT
Rayonnant
(Taicang)
HengHao
Kunshan
3 CIT
CEA
4 CPO
CIT
4 CPO
CEA
5 CET
BT
6 Panpal
Kinpo & Compal
Group Assets
Development
Corporation
6 Panpal
HengHao
7 CIC
HengHao
Kunshan
7 CIC
CEB
Account
name
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
8 BSH
Compal USA
(Indiana), Inc
Other
receivables
9 Gempal
Kinpo & Compal
Group Assets
Development
Corporation
Other
receivables
9 Gempal
Ray-Kwong
Medical
Management
Consulting
10 CGSP
CEP
11 Hong Ji
Kinpo & Compal
Group Assets
Development
Corporation
Other
receivables
Other
receivables
Other
receivables
12 Hong Jin Hippo Screen
Other
receivables
13 Arcadyan Acradyan Brasil Other
receivables
13 Arcadyan Acradyan Brasil Other
13 Arcadyan Arcadyan
Vietnam
receivables
Other
receivables
13 Arcadyan Arcadyan
Vietnam
Other
receivables
Highest balance
of financing to
other parties
during the
period
Ending
balance
Actual
usage
amount
during the
period
460,000
230,000
230,000
Range of
interest rates
during the
period
2.19%~2.29%
Related
party
Y
Transaction
amount for
business
between two
parties
-
Purposes of fund
financing for the
borrower
Short-term
financing
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
Y
Y
400,000
200,000
200,000
2.19%~2.29%
1,751,250
921,150
921,150
5.00%~6.19%
1,150,000
550,000
-
2.16%~2.29%
3,508,925
1,995,825
1,995,825
5.00%~6.19%
62,510
61,410
61,410
6.09%
64,850
-
-
6.61%
886,700
432,700
432,700
2.10%~2.20%
2,269,750
2,149,350
1,780,890
6.61%
81,063
-
-
6.61%
1,887,150
921,150
921,150
5.75%~6.61%
324,250
307,050
307,050
6.09%
1,330,050
649,050
649,050
2.10%~2.20%
972,750
921,150
921,150
6.09%
532,680
259,620
173,080
2.00%~2.20%
1,600,000
1,000,000
1,000,000
2.16%~2.29%
1,200,000
600,000
600,000
2.19%~2.29%
1,783,375
1,688,775
1,688,775
6.61%
324,250
307,050
307,050
6.09%
583,650
506,633
337,756
6.61%
600,000
-
-
2.29%
15,000
5,000
5,000
2.19%~2.29%
64,850
61,410
-
6.61%
450,000
450,000
430,000
2.29%
35,000
35,000
20,000
2.19%
63,720
-
-
5.00%
64,870
61,410
42,987
5.50%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
demand
Operating
financing
Operating
financing
304,800
-
324,350
307,050
-
-
1.00%
5.50%
Transaction for
business between
two parties
Transaction for
business between
two parties
14,676,990
19,589,790
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
23,924,399
Maximum limit
of fund
financing
47,848,798
Note
(Note 1)
23,924,399
47,848,798
(Note 1)
23,924,399
47,848,798
(Note 1)
4,555,887
47,848,798
(Note 1)
23,924,399
47,848,798
(Note 1)
23,924,399
47,848,798
(Note 1)
45,060,928
45,060,928
(Note 2)
2,832,493
2,832,493
(Note 3)
27,565,296
27,565,296
(Note 4)
27,565,296
27,565,296
(Note 4)
27,565,296
27,565,296
(Note 4)
27,565,296
27,565,296
(Note 4)
3,111,110
3,111,110
(Note 5)
3,111,110
3,111,110
(Note 5)
5,045,678
5,045,678
(Note 6)
2,376,225
2,376,225
(Note 7)
2,376,225
2,376,225
(Note 7)
10,930,282
10,930,282
(Note 8)
10,930,282
10,930,282
(Note 8)
8,255,369
8,255,369
(Note 9)
964,878
964,878
(Note 10)
13,749
964,878
(Note 10)
92,753
92,753
(Note 11)
477,167
477,167
(Note 12)
154,819
154,819
(Note 13)
2,960,444
5,920,889
(Note 14)
2,960,444
5,920,889
(Note 14)
2,960,444
5,920,889
(Note 14)
2,960,444
5,920,889
(Note 14)
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
99
Table 1 Loans to other parties:
(December 31, 2023)
Name of
lender
No.
14 Arcadyan
Holding
Name of
borrower
CNC
15 Poindus
Systems
Adasys GmbH
Elektronische
Komponenten
Account
name
Other
receivables
Long-term
receivables
15 Poindus
Systems
Poindus Systems
UK Limited
Long-term
receivables
Highest balance
of financing to
other parties
during the
period
1,946,100
Related
party
Y
Actual
usage
amount
during the
period
-
Range of
interest rates
during the
period
5.50%
Ending
balance
1,842,300
Y
Y
43,843
22,087
22,087
2.00%~4.57%
26,169
25,448
25,448
1.00%
Transaction
amount for
business
between two
parties
-
67,310
Purposes of fund
financing for the
borrower
Short-term
financing
Transaction for
business between
two parties
Transaction for
business between
two parties
37,638
Reasons for
short-term
financing
Operating
financing
Allowan
ce for
bad debt
-
-
-
Collateral
Item Value
-
-
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
2,245,049
Maximum limit
of fund
financing
2,245,049
Note
(Note 15)
51,844
207,377
(Note 16)
51,844
207,377
(Note 16)
Note 1(cid:28873)
Note 2(cid:28873)
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
Note 3(cid:28873)
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
Note 4(cid:28873)
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
Note 5(cid:28873)
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
Note 6(cid:28873)
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
Note 7(cid:28873)
Note 8(cid:28873)
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
Note 9(cid:28873)
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
Note 10(cid:28873)
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
Note 11(cid:28873)
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 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
Note 12(cid:28873)
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 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
Note 13(cid:28873)
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 Hong Jin’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 Jin. When a short-term financing facility with Hong Jin 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 Jin’s total amount of lendable capital, and shall be combined with the Hong Jin’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
Note 14(cid:28873)
Note 15(cid:28873)
Note 16(cid:28873)
Note 17(cid:28873)
aforesaid restrictions, but the maximum amount shall not exceed the total amount of lendable capital of Hong Jin, 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
100
Table 2 Guarantees and endorsements for other parties:
(December 31, 2023)
Counter-party of guarantee
and endorsement
Name of
guarantor
The Company CEP
No.
0
Name
Limitation on
amount of
guarantees and
endorsements for
a specific
enterprise
28,876,015
Relationship
with the
Company
(Note 4)
Highest balance for
guarantees and
endorsements
during the period
57,285
Balance of
guarantees and
endorsements as
of reporting date
18,676
Actual usage
amount
during the
period
18,676
Property pledged
for guarantees and
endorsements
(Amount)
-
(In Thousands of New Taiwan Dollars)
Ratio of
accumulated
amounts of
guarantees and
endorsements to
net worth of the
latest financial
statements
0.02%
Maximum
amount
for guarantees
and endorsements
(Note 1(cid:501)(cid:501)2 and 3)
57,752,031
Parent
company
endorsements/
guarantees to
third parties
on behalf of
subsidiary
Y
Subsidiary
endorsements/
guarantees to
third parties
on behalf of
parent
company
-
Endorsements/
guarantees to
third parties on
behalf of
companies in
Mainland
China
-
0
The Company CEB
(Note 5)
28,876,015
376,130
356,178
356,178
0
The Company HengHao
Kunshan
(Note 5)
28,876,015
26,670
25,962
25,962
1 Arcadyan
Arcadyan AU
(Note 5)
1,973,629
243,263
230,288
-
2
Poindus
Systems
Qijie
(Note 5)
103,688
30,710
-
-
-
-
-
-
0.31%
57,752,031
0.02%
57,752,031
1.56%
5,920,889
0.00%
259,221
Y
Y
Y
Y
-
-
-
-
-
Y
-
Y
Note 1(cid:28873)
Note 2(cid:28873)
Note 3(cid:28873)
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(cid:28873) Subsidiary whose over 50% common stock is directly owned.
Note 5(cid:28873) Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
101
Table 3 Securities held as of December 31, 2023 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2023)
Name of
holder
Category and name of security
The Company Taiwan Mobile
Relationship with security
issuer
(cid:4137)
The same chairman of the
Company
The same chairman of the
Company
(cid:4137)
(cid:4137)
(cid:4137)
The Chairman of the Board is
the first degree of kinship of
the 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.
AcBel
Chen Feng Optoelectronics
PrimeSensor Technology Inc.
Ganzin Technology, Inc.
Airoha Technology Corp.
ITH Corporation
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)
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 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
Ending balance
Shares/Units
(thousands)
3,197
Carrying
value
315,254
Holding
percentage
(%)
-
Fair value
315,254
(In Thousands of shares/ units)
The highest holdings in the
period
Shares/Units
(thousands)
3,197
Holding
percentage
(%)
-
Note
124,044
2,015,711
8%
2,015,711
124,044
8%
1,554,139
2,906,241
15%
2,906,241
1,554,139
15%
48
53
13,553
10%
13,553
290
10%
13,515
11%
13,515
53
11%
4,000
10,800
3%
10,800
4,000
3%
6,685
274,754
1%
274,754
6,685
1%
6,685
101,676
7%
101,676
6,685
7%
868
13,361
1%
13,361
868
1%
2,000
36,000
7%
36,000
2,000
7%
215
124,055
-
124,055
215
-
8,000
225,989
2%
225,989
8,000
2%
-
179,175
2%
179,175
-
2%
5,000
91,000
8%
91,000
5,000
8%
6,000
67,680
19%
67,680
6,000
19%
146,801
146,801
_____________
6,535,565
1,261,176
31,648
1%
1,261,176
31,648
1%
(Note 1)
69,370
1,127,257
5%
1,127,257
69,370
5%
54,000
822,420
5%
822,420
54,000
5%
The Chairman of the Board is
the first degree of kinship of
the Chairman of the Company
Financial assets at fair value
through other comprehensive
income-non-current
11,332
465,740
2%
465,740
11
2%
AcBel
Lian Hong Art. Co., Ltd.
Taiwan Biotech Co., Ltd.
Others
Total
(cid:4137)
(cid:4137)
(cid:4137)
Gempal
Compal Electronics, Inc.
The parent company
Lian Hong Art. Co., Ltd.
Others
Total
(cid:4137)
(cid:4137)
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
2,291
71,387
6%
71,387
11,332
6%
8,680
160,061
3%
160,061
7,845
3%
9,384
9,384
_____________
3,917,425
18,369
732,019
-
732,019
18,369
-
(Note 1)
2,291
71,365
6%
71,365
2,225
6%
952
952
_____________
804,336
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
102
Table 3 Securities held as of December 31, 2023 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2023)
Name of
holder
Hong Ji
Category and name of security
SUYIN Optronics Co., Ltd.
(“SUYIN Optronics”)
Relationship with security
issuer
(cid:4137)
Hong Jin
SUYIN Optronics
Arcadyan
GeoThings Inc.
AirHop Communication Inc.
Adant Technologies Inc.
IOT EYE, Inc.
TIEF FUND L.P.
Chimei Motor Electronics Co., LTD
Golden Smarthome Technology Corp.
Total
Mactech
Taichung International Golf
Country Club
HHB
HWALLAR OPTRONICS
(Fuzhou) CO., LTD.
Mithera
Beyond Limits, Inc.
BT
CIT
Suzhou Genki Fuhong Health
Management Co., Ltd.
Kunqiao Phase II (Suzhou) Emerging
Industry Venture Capital Partnership
Fund
BSH
Achi Capital Partners Fund LP
ABG Capital PartnersV, LP
Total
(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)
Account name
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through profit or loss-non-current
Financial assets at fair value
through profit or loss-non-current
Ending balance
Shares/Units
(thousands)
380
Carrying
value
332
200
1,152
349
60
Holding
percentage
(%)
1%
Fair value
-
1%
4%
5%
5%
14%
-
-
-
-
-
-
-
-
-
-
-
(In Thousands of shares/ units)
The highest holdings in the
period
Shares/Units
(thousands)
380
Holding
percentage
(%)
1%
Note
(Note 2)
332
1%
(Note 2)
200
4%
(Note 2)
1,152
5%
(Note 2)
349
5%
(Note 2)
60
14%
(Note 2)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
48,112
7%
48,112
(cid:4137)
7%
1,650
35,442
6%
35,442
1,650
6%
1,229
(cid:4137)
2%
(cid:4137)
1,229
6%
_____________
83,554
11,790
(cid:4137)
11,790
-
19%
-
(cid:4137)
(cid:4137)
(cid:4137)
19%
(Note 2)
873
138,172
(cid:4137)
138,172
873
(cid:4137)
4,328
17%
4,328
502,738
62,733
266,074
-
-
-
502,738
62,733
266,074
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
17%
-
-
-
_____________
328,807
Note 1(cid:28873)The transaction had been eliminated in the consolidated financial statements.
Note 2(cid:28873)The carrying value is the remaining amount after deducting accumulated impairment.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
103
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, 2023)
Security
Name of
company
The
Company
The
Company
Category
Stock
Account
name
Investments accounted for
using equity method
Name of
counter-party
(Note 1)
Name
Kinpo & Compal
Group Assets
Development
Corporation
Cal-Comp
Stock
Relationship
with the
company
(Note 5)
Beginning Balance
Purchases
Sales
Others
Ending Balance
Shares/ Units
Amount
Shares/ Units
Amount
Shares/ Units
Price
Cost
Gain (loss) on
disposal
Shares/
Units
Amount
Shares/ Units
Amount
52,500
505,547
350,000
3,500,000
-
-
-
-
-
(19,145)
402,500
3,986,402
(In Thousands of New Taiwan Dollars/ shares)
(Note 2)
BSH
CEV
Arcadyan
Arcadyan
Holding
Stock
Stock
Financial assets at fair
value through other
comprehensive income-
non-current
Investments accounted for
using equity method
Investments accounted for
using equity method
(Note 1)
(Note 7)
281,233
579,341
1,249,470
1,718,266
-
-
-
-
23,436
608,634
1,554,139
2,906,241
(Note 1)
(Note 6)
-
-
-
1,658,070
-
-
-
-
(Note 1)
(Note 6)
47,780
1,804,421
60,000
1,843,500
60,000
-
1,843,500 -
(Note 3)
(Note 4)
-
-
36,262
(Note 2)
262,540
(Note 2)
-
1,694,332
47,780
2,066,961
Note 1: Cash capital.
Note 2: Others refer to investment income using equity method and foreign currency translation differences of foreign operations.
Note 3: Stock dividends.
Note 4: Others refer to unrealized gain and loss on financial asstes and its deferred taxes.
Note 5: Subsidiary whose over 50% common stock is directly owned.
Note 6: Subsidiary whose over 50% common stock is indirectly owned.
Note 7: The same chairman of the Company.
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(For the year ended December 31, 2023)
Name of
company
Arcadyan
Transaction date
(Note 1)
September 28,
2023
Transaction
amount
738,000
Status of payment
-
Counter-party
Chien Ming
Construction Co.
Ltd.
If the counter-party is a related party,
disclose the previous transfer information
Relationship
with the
Company
None
Relationship
with the
Company
not applicable
Date of
transfer
not applicable
Amount
not applicable
Owner
not applicable
(In Thousands of New Taiwan Dollars)
References for
determining
price
price comparison
and negotiation
Purpose of
acquisition and
current
condition
operational use
Others
None
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated 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, 2023)
104
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
The Company
CBN
Counter
party
Arcadyan
Nature of
relationship
The Company's
subsidiaries
The Company's
subsidiaries
Purchase/
(Sale)
Sale
Amount
(170,327)
Sale
(1,418,650)
Percentage
of total
purchases/
(sales)
Payment terms
(0.0)% Net 90 days from
delivery
(0.2)% Net 60 days from the
end of the month of
delivery
Unit price
Similar to non-
related parties
Similar to non-
related parties
CEP
CEP
Subsidiaries wholly owned
by the Company
Sale
(114,975)
(0.0)%
120 days
Subsidiaries wholly owned
by the Company
Purchase
189,437
0.0%
120 days
CIH and its
subsidiaries
Subsidiaries wholly owned
by the Company
Purchase
105,753,627
11.2%
120 days
Just and its
subsidiaries
Subsidiaries wholly owned
by the Company
Purchase
71,030,857
7.5%
120 days
HSI and its
subsidiaries
Subsidiaries wholly owned
by the Company
Purchase
66,824,371
7.1%
120 days
BCI and its
subsidiaries
Subsidiaries wholly owned
by the Company
Purchase
29,504,779
3.1%
120 days
Etrade and its
subsidiaries
Subsidiaries wholly owned
by the Company
Purchase
2,973,830
0.3% Net 60 days from
delivery
Kinpo
Just and its
subsidiaries
Compal Electronic,
Inc.
The same chairman of the
Company
Parent company
Purchase
45,822,993
4.9% Net 35 days from the
Sale
(71,030,857)
(99.6)%
end of the month
120 days
UCGI
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
Sale
(211,853)
(0.3)%
60 days
Purchase
1,148,812
2.1%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Markup based on
BCI and its
subsidiaries' cost
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
Etrade and its
subsidiaries
With the same
ultimate parent
company
Purchase
148,167
(0.3)% Net 60 days from
delivery
According Etrade
and its subsidiaries
to markup pricing
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(105,753,627)
(92.8)%
120 days
BCI and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
CEB
With the same
ultimate parent
company
Sale
(505,696)
(0.3)%
120 days
Sale
(8,058,473)
(5.6)%
120 days
Sale
(245,966)
(0.2)%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Payment Terms
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.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
137,791
0.1% (Note 2)
685,277
0.4% (Note 2)
97,737
0.1% (Note 2)
-
0.0% (Note 2)
(49,778,450)
(30.5)% (Note 2)
(2,070,603)
(1.3)% (Note 2)
(7,960,864)
(4.9)% (Note 2)
(9,497,819)
(5.8)% (Note 2)
(995,739)
(0.6)% (Note 2)
(9,565,439)
(5.9)%
2,070,603
99.1% (Note 2)
37,844
0.5% (Note 2)
-
-
(0.0)% (Note 2)
(0.0)% (Note 2)
49,778,450
91.4% (Note 2)
9,236
0.0% (Note 2)
7,590,654
7.6% (Note 2)
11,918
0.0% (Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated 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, 2023)
105
Company
Name
CIH and its
subsidiaries
Counter
party
CEA
Nature of
relationship
With the same
ultimate parent
company
Purchase/
(Sale)
Sale
Transaction details
Percentage
of total
purchases/
(sales)
Amount
(311,899)
(0.2)%
Payment terms
120 days
Unit price
Similar to non-
related parties
BCI and its
subsidiaries
With the same
ultimate parent
company
Rayonnant
Technology and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
CPM
With the same
ultimate parent
company
An associate
Purchase
346,858
0.3%
120 days
Purchase
1,403,349
1.1%
120 days
Purchase
694,749
0.5%
120 days
Purchase
2,444,514
1.9%
120 days
Changbao
An associate
Purchase
203,638
0.2%
120 days
Acbel and its
subsidiaries
The Chairman of the
Board is the first degree of
kinship of the Chairman
of the Company
Purchase
721,560
0.5%
120 days
BCI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(29,504,779)
(92.2)%
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
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
68,223
0.1% (Note 2)
(16,460)
(0.0)% (Note 2)
(263,964)
(0.2)% (Note 2)
(89,676)
(0.1)% (Note 2)
(541,864)
(0.7)%
(6,375)
(0.0)%
(276,555)
(0.4)%
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.
There is no significant
difference.
There is no significant
difference.
(346,858)
(0.9)%
120 days
(424,337)
(4.1)%
120 days
(688,172)
(1.9)%
120 days
Markup based on
BCI and its
subsidiaries' cost
According to markup
pricing
According to markup
pricing
According to markup
pricing
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.
9,497,819
93.0% (Note 2)
16,460
0.0% (Note 2)
1,276,398
3.3% (Note 2)
193,709
0.5% (Note 2)
(315,316)
(0.8)%
120 days
According to markup
pricing
There is no significant
difference.
402,431
3.1% (Note 2)
505,696
1.6%
120 days
According to markup
pricing
120,513
0.5%
120 days
Adjustments will be
made based on demand
for funding.
There is no significant
difference.
There is no significant
difference.
There is no significant
difference.
(9,236)
(0.0)% (Note 2)
(25,132)
(0.1)% (Note 2)
(12,690)
(102,674)
(0.0)%
(0.3)%
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Sale
Sale
Sale
Sale
Sale
Sale
CIH and its
subsidiaries
HSI and its
subsidiaries
CEA
CEB
CIH and its
subsidiaries
Rayonnant
Technology and its
subsidiaries
CPM
Acbel 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
An associate
The Chairman of the
Board is the first degree of
kinship of the Chairman
of the Company
CEA
CEB
CEB
BCI and its
subsidiaries
CIH and its
subsidiaries
BCI and its
subsidiaries
CEA
CIH and its
subsidiaries
CEP
Compal Electronic,
Inc.
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
Purchase
172,286
0.5%
120 days
Purchase
230,457
0.7%
120 days
Sale
(1,562,819)
(21.3)%
45 days
Purchase
688,172
11.3%
120 days
Purchase
311,899
5.1%
120 days
Purchase
315,316
8.0%
120 days
Purchase
1,562,819
38.9%
45 days
Purchase
245,966
6.1%
120 days
Sale
(189,437)
(91.3)%
120 days
Compal Electronic,
Inc.
Parent company
Purchase
114,975
100.0%
120 days
Similar to non-
related parties
There is no significant
difference.
According to markup
pricing
There is no significant
difference.
Similar to non-
related parties
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
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.
943,962
36.6% (Note 2)
(193,709)
(25.8)% (Note 2)
(68,223)
(9.1)% (Note 2)
(402,431)
(28.8)% (Note 2)
(943,962)
(67.6)% (Note 2)
(11,918)
(0.9)% (Note 2)
-
0.0% (Note 2)
(97,737)
89.2% (Note 2)
(Continued)
Sale
(212,507)
(100.0)% Net 60 days from
delivery
Similar to non-
related parties
There is no significant
difference.
128,048
100.0% (Note 2)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated 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, 2023)
106
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
(2,973,830)
Percentage
of total
purchases/
(sales)
Payment terms
(88.9)% Net 60 days from
delivery
Unit price
According to markup
pricing
Just and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
Forever and
its subsidiaries
HSI and its
subsidiaries
UCGI
JUST and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Rayonnant
Technology
and its
subsidiaries
CIH and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(148,167)
(4.5)% Net 60 days from
delivery
According to markup
pricing
Purchase
196,028
19.2% Net 60 days from
delivery
Similar to non-
related parties
Purchase
211,853
53.3%
60 days
Sale
(1,403,349)
(92.1)%
120 days
Sale
(120,513)
(7.9)%
120 days
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(66,824,371)
(97.1)%
120 days
CIH and its
subsidiaries
With the same
ultimate parent
company
Just and its
subsidiaries
With the same
ultimate parent
company
Etrade and its
subsidiaries
With the same
ultimate parent
company
CIH and its
subsidiaries
With the same
ultimate parent
company
Sale
(694,749)
(1.0)%
120 days
Sale
(1,148,812)
(1.6)%
120 days
Sale
(196,028)
(0.3)% Net 60 days from
delivery
Purchase
8,058,473
11.6%
120 days
With the same
ultimate parent
company
With the same
ultimate parent
company
Parent company
CBN
Arcadyan
Forever and its
subsidiaries
BCI and its
subsidiaries
Compal Electronic,
Inc.
Acradyan
Germany
Acradyan
USA
Acradyan
AU
Compal Electronic,
Inc.
Purchase
160,983
17.0% Net 90 days from
delivery
(1,028,804)
(2.0)% Net 150 days from
delivery
(19,847,179)
(42.0)% Net 120 days from
Arcadyan's subsidiary
Arcadyan's subsidiary
Arcadyan's subsidiary
Sale
Sale
Sale
(1,075,651)
Parent company
Purchase
1,497,276
delivery
(2.0)% Net 60 days from the
end of the month of
delivery
2.0% Net 60 days from the
end of the month of
delivery
-
-
-
-
-
CNC
Arcadyan's subsidiary
Purchase
8,605,578
12.0% Net 120 days from
delivery
According to markup
pricing
Arcadyan Vietnam Arcadyan's subsidiary
Purchase
3,346,396
5.0% Net 180 days from
the end of the month
of delivery
According to markup
pricing
CNC
Arcadyan
Arcadyan
Vietnam
Acradyan
Germany
Arcadyan
Arcadyan
With the same
ultimate parent
With the same
ultimate parent
company
With the same
ultimate parent
Sale
Sale
(8,605,578)
(100.0)% Net 120 days from
(3,346,396)
delivery
(100.0)% Net 180 days from
the end of the month
of delivery
According to markup
pricing
According to markup
pricing
Purchase
1,028,804
100.0% Net 150 days from
-
delivery
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
995,739
92.7% (Note 2)
-
-
0.0% (Note 2)
(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.
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
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.
(37,844)
(12.3)% (Note 2)
263,964
91.3% (Note 2)
25,132
8.7% (Note 2)
7,960,864
99.6% (Note 2)
89,676
0.4% (Note 2)
-
-
0.0% (Note 2)
0.0% (Note 2)
(7,590,654)
(17.1)% (Note 2)
There is no significant
difference.
-
-
-
-
-
-
-
-
-
(130,494)
(69.0)% (Note 2)
208,003
2.0% (Note 2)
3,444,196
39.0% (Note 2)
135,262
2.0% (Note 2)
(685,277)
(6.0)% (Note 2)
(2,871,117)
(26.0)% (Note
1&2)
(Note 3)
2,871,117
(Note 3)
- % (Note
1&2)
(100.0)% (Note
1&2)
- % (Note
1&2)
(208,003)
(100.0)% (Note 2)
(Continued)
Purchase
212,507
0.5% Net 60 days from
delivery
Purchase
424,337
1.0%
120 days
Similar to non-
related parties
There is no significant
difference.
Similar to non-
related parties
There is no significant
difference.
(128,048)
(0.3)% (Note 2)
(1,276,398)
2.9% (Note 2)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated 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, 2023)
107
Company
Name
Acradyan
USA
Acradyan
AU
Counter
party
Nature of
relationship
Arcadyan
Arcadyan
With the same
ultimate parent
With the same
ultimate parent
company
Transaction details
Percentage
of total
purchases/
(sales)
Amount
Payment terms
19,847,179
100.0% Net 120 days from
Purchase/
(Sale)
Purchase
Purchase
1,075,651
delivery
100.0% Net 60 days from the
end of the month of
delivery
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, 2023 is 1,439,730 thousand dollars.
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Unit price
-
Payment Terms
-
Percentage
of total
notes/accounts
receivable
(payable)
Note
(100.0)% (Note 2)
Ending
Balance
(3,444,196)
-
-
(135,262)
(100.0)% (Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
108
Table 7 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(December 31, 2023)
Name of Company
Counter-party
The Company
Arcadyan
Nature of relationship
The Company's subsidiary
The Company
CBN
The Company's subsidiary
The Company
Just and its subsidiaries The Company's subsidiary
The Company
Cal-Comp
The same chairman of the
Company
Just and its subsidiaries Compal Electronic, Inc. Parent company
Ending Balance
685,277
137,791
Turnover
rate
1.33
0.86
4,050,926
(Note 2)
6,407,361
(Note 2)
2,070,603
(Note 2)
(Note 2)
37.47
CIH and its subsidiaries Compal Electronic, Inc. Parent company
49,778,450
CIH and its subsidiaries HSI and its subsidiaries With the same ultimate
parent company
BCI and its subsidiaries Compal Electronic, Inc. Parent company
BCI and its subsidiaries HSI and its subsidiaries With the same ultimate
BCI and its subsidiaries CEB
BCI and its subsidiaries CEA
CEA
CEB
parent company
With the same ultimate
parent company
With the same ultimate
parent company
With the same ultimate
parent company
Rayonnant Technology
and its subsidiaries
CIH and its subsidiaries With the same ultimate
parent company
7,590,654
9,497,819
1,276,398
1,193,411
193,709
943,962
263,964
2.17
1.37
3.22
0.83
0.38
3.68
2.30
6.13
Etrade and its
subsidiaries
Forever and its
subsidiaries
Compal Electronic, Inc. Parent company
995,739
1.84
HSI and its subsidiaries With the same ultimate
128,048
1.23
parent company
HSI and its subsidiaries Compal Electronic, Inc. Parent company
7,960,864
10.38
Arcadyan AU
Arcadyan's subsidiary
135,262
5.16
Arcadyan
Arcadyan
Arcadyan
Arcadyan USA
Arcadyan's subsidiary
Arcadyan Vietnam
Arcadyan's subsidiary
3,444,196
1,439,730
(Note 2)
208,003
2,871,117
(Note 3)
5.26
(Note 2)
2.56
2.93
Arcadyan
Arcadyan Germany
Arcadyan's subsidiary
CNC
Arcadyan
With the same ultimate
parent company
Note 1: Balance as of February 16, 2024.
Note 2: Receivables due to purchasing on behalf of related parties.
Note 3: Accounts receivables due to processing raw material.
(In Thousands of New Taiwan Dollars)
Overdue
Amount
-
Action
taken
-
Amounts received in
subsequent period
-
(Note 1)
Allowance
for bad
debts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
95,958 (Note 1)
4,050,926 (Note 1)
6,406,905 (Note 1)
1,450,425 (Note 1)
47,287,744 (Note 1)
-
(Note 1)
9,497,819 (Note 1)
-
(Note 1)
630 (Note 1)
26,671 (Note 1)
146,874 (Note 1)
-
(Note 1)
307,188 (Note 1)
-
(Note 1)
7,667,057 (Note 1)
118,749 (Note 1)
3,212,352 (Note 1)
-
(Note 1)
15,897 (Note 1)
747,311 (Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
109
Table 8 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2023)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1)
0
Company name
Counter party
The Company
CBN
Relationship
(Note 2)
1
Accounts name
Sales Revenue
Amount
170,327
0
The Company
Arcadyan
0
The Company
CEP
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
BCI and its subsidiaries
2
CIH and its subsidiaries
HSI and its subsidiaries
2
CIH and its subsidiaries
CEA
2
CIH and its subsidiaries
CEB
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
5
6
BCI and its subsidiaries
CEB
BCI and its subsidiaries
CEA
CEA
CEP
CEB
The Company
Etrade and its subsidiaries
The Company
6
Etrade and its subsidiaries
JUST and its subsidiaries
Accounts Receivable
Sales Revenue
137,791
1,418,650
Accounts Receivable
Sales Revenue
685,277
114,975
Accounts Receivable
Sales Revenue
97,737
71,030,857
Accounts Receivable
Sales Revenue
2,070,603
211,853
Accounts Receivable
Sales Revenue
37,844
105,753,627
Accounts Receivable
Sales Revenue
49,778,450
505,696
Accounts Receivable
Sales Revenue
9,236
8,058,473
Accounts Receivable
Sales Revenue
7,590,654
311,899
Accounts Receivable
Sales Revenue
68,223
245,966
Accounts Receivable
Sales Revenue
11,918
29,504,779
Accounts Receivable
Sales Revenue
9,497,819
346,858
Accounts Receivable
Sales Revenue
16,460
424,337
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
Accounts Receivable
Sales Revenue
1,276,398
315,316
402,431
688,172
193,709
1,562,819
943,962
189,437
-
2,973,830
Accounts Receivable
Sales Revenue
995,739
148,167
1
1
2
2
2
3
3
3
3
2
3
3
3
3
3
2
2
3
Terms
There is no significant difference of price to non-
related parties. The credit period is net 90 days from
the 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, 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.
(cid:579)
The price is based on the operating cost. The credit
period is net 120 days.
(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.
(cid:579)
There is no significant difference of price to non-
related parties. The credit period is net 120 days.
(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)
The price is based on the operating cost. The credit
period is net 60 days from delivery, and will be
adjusted if necessary.
Accounts Receivable
-
(cid:579)
Percentage of the
consolidated net
revenue or total
assets
-
-
0.1%
0.2%
-
-
7.5%
0.5%
-
-
11.2%
11.4%
0.1%
-
0.9%
1.7%
-
-
-
-
3.1%
2.2%
-
-
-
0.3%
-
0.1%
0.1%
-
0.2%
0.2%
-
-
0.3%
0.2%
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
110
Table 8 Business relationships and significant intercompany transactions:
(For the year ended December 31, 2023)
Intercompany transactions
(In Thousands of New Taiwan Dollars)
No.
(Note 1)
7
Company name
Counter party
Forever and its subsidiaries HSI and its subsidiaries
Relationship
(Note 2)
3
Accounts name
Sales Revenue
Amount
212,507
8
8
Rayonnant and its
subsidiaries
Rayonnant and its
subsidiaries
CIH and its subsidiaries
BCI and its subsidiaries
9
HSI and its subsidiaries
The Company
9
HSI and its subsidiaries
Etrade and its subsidiaries
9
HSI and its subsidiaries
CIH and its subsidiaries
9
HSI and its subsidiaries
JUST 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
3
3
2
3
3
3
3
3
3
3
3
3
Accounts Receivable
Sales Revenue
128,048
1,403,349
Accounts Receivable
Sales Revenue
263,964
120,513
Accounts Receivable
Sales Revenue
25,132
66,824,371
Accounts Receivable
Sales Revenue
7,960,864
196,028
Accounts Receivable
Sales Revenue
-
694,749
Accounts Receivable
Sales Revenue
89,676
1,148,812
Accounts Receivable
Sales Revenue
-
1,028,804
Accounts Receivable
Sales Revenue
208,003
19,847,179
Accounts Receivable
Sales Revenue
3,444,196
1,075,651
Accounts Receivable
Other Receivable
135,262
1,439,730
Processing Revenue
8,605,578
Accounts Receivable
Processing Revenue
2,871,117
3,346,396
Terms
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 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 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
the end of the month of 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 the end of the month of
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.
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.
Percentage of the
consolidated net
revenue or total
assets
-
-
0.3%
0.1%
-
-
7.1%
1.8%
-
-
0.1%
-
0.1%
-
0.1%
-
2.1%
0.8%
0.1%
-
0.3%
0.9%
0.7%
0.4%
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
111
Table 9 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
The Company
Investee
Company
Kinpo & Compal Group Assets
Development Corporation
Location
Taipei City
Main Businesses
and Products
Real estate development leasing and related
management business
Depcmber 31,
2023
4,025,000
December 31,
2022
525,000
Shares
402,500
Original Investment Amount
Ending Balance
Percentage
of
Ownership
70%
Carrying
Value
3,986,402
The highest holdings in the
period
(In Thousands of New Taiwan Dollars/ shares)
Percentage of
Ownership
Net income
(losses) of
investee
Share of profits/losses
of investee
70%
(27,399)
(19,145)
Note
(Note 2)
Shares
402,500
Bizcom
Milpitas, USA Warranty services and marketing of LCD TVs
36,369
36,369
100
100%
463,533
100
100%
11,411
11,411
(Note 2)
Just
CIH
Panpal
Gempal
and notebook PCs
British Virgin
Islands
British Virgin
Islands
Investment
Investment
Taipei City
Investment
1,480,509
1,480,509
48,010
100%
10,585,776
48,010
100%
286,164
286,164
(Note 2)
1,787,680
1,787,680
53,001
100%
45,073,776
53,001
100% 2,551,767
2,551,767
(Note 2)
5,171,837
5,171,837
500,000
100%
4,763,551
500,000
100%
44,704
6,725
(Note 2)
(Note 1)
-
Taipei City
Investment
900,036
900,036
90,000
100%
1,729,447
90,000
100%
148,827
126,784
(Note 2)
Kinpo Group Management
Taipei City
Consultation, training services, etc.
Ripal
Unicore
Tainan City
Manufacturing of electric appliance and
audiovisual electric products
Taipei City
Management & Consultant, rental and leasing
business and wholesale and retail of medical
equipments
Manufacturing of electric appliance and
audiovisual electric products
Lead-Honor
Taoyuan City
CEH
British Virgin
Islands
Investment
Shennona Taiwan
Taipei City
Management & Consultant, rental and leasing
business, wholesale and retail sale of precision
instruments and international trade
Allied Circuit
Taoyuan City
Production and sales of PCB boards
Poindus Systems
Taipei City
Design and manufacture of PCs and
peripheral equipment
Aco Smartcare
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 Investment
Hsinchu County R&D of MEMS microphone related products
LIPO
CPE
Starmems
Crownpo
Taipei City
Manufacturing, processing, and selling resistor
chips, networking chips, diodes, multilayer
ceramic capacitors, semiconductor devices,
and selling electronic products
Hong Ji
Hong Jin
Mactech
Taipei City
Investment
Taipei City
Investment
Taichung City Manufacturing of equipment and lighting,
retailing of equipment and international
trading
3,000
60,000
3,000
300
60,000
6,000
38%
100%
(Note 1)
5,044
114,460
-
300
6,000
38%
100%
434
(1,751)
162
(7,998)
(Note 2)
200,000
200,000
20,000
100%
67,239
20,000
100%
(17,243)
(17,243)
(Note 2)
42,000
42,000
2,772
42%
-
2,772
42%
34
34
1
100%
3,618,638
1
100%
-
-
-
-
(Note 2)
20,000
6,000
2,000
100%
17,859
2,000
100%
63
163
(Note 2)
395,388
353,046
395,388
10,158
353,046
11,768
20%
56%
405,002
337,905
10,158
11,768
20%
56%
204,120
18,886
40,477
11,194
(Note 2)
159,083
90,000
330,276
71%
65,171
330,276
71%
(60,467)
(36,581)
(Note 2)
489,450
197,463
35,000
489,450
197,463
35,000
98
6,427
3,500
49%
100%
35%
43,115
898,170
12,259
98
6,427
3,500
49%
(726,686)
(356,076)
100%
34,757
34,757
(Note 2)
35%
(36,374)
(12,731)
(Note 2)
149,547
149,547
3,739
33%
621
3,739
33%
(117,415)
(39,020)
1,000,000
1,000,000
100,000
295,000
219,601
295,000
29,500
219,601
21,756
100%
100%
53%
1,192,920
100,000
387,050
272,981
29,500
21,756
100%
100%
53%
111,601
51,046
41,491
111,601
(Note 2)
51,046
(Note 2)
20,848
(Note 2)
Auscom
Austin, TX USA R&D of notebook PC related products and
101,747
101,747
3,000
100%
154,186
3,000
100%
4,718
4,718
(Note 2)
Arcadyan
Hsinchu City
components
R&D, manufacturing and sales of wireless
network, integrated household electronics, and
mobile office products
FGH
British Virgin
Islands
Investment
1,325,132
1,325,132
41,305
19%
2,854,945
41,305
19% 2,420,569
453,726
(Note 2)
2,754,741
2,754,741
89,755
100%
4,161,690
89,755
100%
(246,117)
(246,117)
(Note 2)
Shennona
Delaware, USA Medical care IOT business
48,210
48,210
-
100%
16,232
-
100%
(430)
(430)
(Note 2)
HSI
CEP
CGSP
Raypal
ARCE
British Virgin
Islands
Investment
Poland
Poland
Maintenance and warranty services of
notebook PCs
Maintenance and warranty services of
notebook PCs
Taipei City
Cancerous immunocyte therapy and
regenerative medicine
Taipei City
Biotechnology services, research &
development services, intellectual property
rights, wholesale of animal medication, retail
sale and management advisory
1,346,814
1,346,814
42,700
54%
449,280
42,700
54%
413,513
221,560
(Note 2)
90,156
90,156
136
100%
(24,107)
136
100%
14,323
3,540
(Note 2)
89,669
89,669
-
100%
92,753
-
100%
(1,399)
344
(Note 2)
209,076
209,076
4,646
30%
167,893
4,646
30%
(66,765)
(19,029)
158,160
60,000
44,540
23%
104,286
44,540
23%
(103,713)
(26,180)
Hippo Screen
Taipei City
Management & Consultant, rental and leasing
business, wholesale and retail sale of precision
instruments and international trade
112,000
112,000
9,100
91%
10,571
9,100
91%
(26,827)
(24,404)
(Note 2)
Infinno
Hsinchu County Manufacturing of electronic components,
127,026
127,026
4,648
28%
24,850
4,648
28%
(26,017)
(7,212)
wholesale and retail sale of precision
instruments and electronic materials
HengHao
Taipei City
Manufacturing of PCs, computer periphery
devices, and electronic components
5,729,757
5,729,757
20,015
100%
(767,963)
20,015
100%
15,876
25,773
(Note 2)
BCI
CBN
British Virgin
Islands
Investment
2,636,051
2,636,051
90,820
100%
9,128,247
90,820
100%
572,422
572,422
(Note 2)
Hsinchu County R&D and sales of cable modem, digital setup
284,827
284,827
29,060
43%
469,329
29,060
43%
(326,109)
(142,346)
(Note 2)
Rayonnant Technology
Taipei City
Manufacturing and sales of PCs, computer
periphery devices, and electronic components
box, and other communication products
CRH
British Virgin
Islands
Investment
295,000
295,000
29,500
100%
215,898
29,500
100%
18,969
15,649
(Note 2)
377,328
377,328
12,500
100%
306,661
12,500
100%
19,254
19,254
(Note 2)
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
112
Table 9 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
The Company
Investee
Company
Acendant Private Equity
Investment Ltd.
Etrade
Webtek
Forever
UCGI
Palcom
Avalue
CORE
Original Investment Amount
Main Businesses
and Products
Depcmber 31,
2023
943,922
December 31,
2022
943,922
Shares
31,253
Ending Balance
Percentage
of
Ownership
35%
Carrying
Value
1,521,614
The highest holdings in the
period
(In Thousands of New Taiwan Dollars/ shares)
Percentage of
Ownership
Net income
(losses) of
investee
Share of profits/losses
of investee
Note
35%
34,228
11,885
Shares
31,253
1,532,029
1,532,029
46,900
65%
(259,807)
46,900
65%
(463,604)
105,576
(Note 2)
3,340
3,340
100
100%
610,994
1,575
1,575
50
100%
1,545,807
100
50
100%
(151,389)
(151,389)
(Note 2)
100%
17,232
17,232
(Note 2)
Investment
Investment
Investment
Investment
Manufacturing and retail sale of computers
and electronic components
689,997
689,997
20,000
100%
82,467
20,000
100%
(81,407)
(80,146)
(Note 2)
Location
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Taipei City
Taipei City
Selling of mobile phones
New Taipei City Manufacturing, processing, and import and
export business of industrial motherboards
British Virgin
Islands
Investment
100,000
547,595
100,000
10,000
547,595
14,924
100%
21%
98,152
779,482
10,000
14,924
100%
(11,342)
(11,339)
(Note 2)
21%
602,154
125,916
4,318,860
4,318,860
147,000
100%
8,079,840
147,000
100%
417,529
417,529
(Note 2)
Compal Ruifang
New Taipei City Investing and developing businesses, such as
300,000
100,000
30,000
100%
300,478
30,000
100%
538
538
(Note 2)
public construction and specific zones
GLB
New Taipei City Manufacturing and wholesale of medical
247,560
247,560
15,035
50%
379,334
15,035
50%
50,433
21,862
(Note 2)
equipment
Compal Healthcare
Taipei City
Information software services, data processing
services, and electronic information supply
services
20,000
CMX
Mexcio
Production of automotive electronic products
77,997
-
-
2,000
100%
20,003
2,000
100%
3
3
(Note 2)
-
100%
92,642
-
100%
15,018
15,018
(Note 2)
Panpal
Arcadyan
Hsinchu City
Telecommunication equipment and apparatus
manufacturing, electronic parts and
components manufacturing, restrained
telecom radio frequency equipment and
materials import and manufacturing
279,202
279,202
8,192
4%
610,998
8,192
4% 2,420,569
__________
104,656,676
Allied Circuit
Taoyuan City
Production and selling of PCB boards
148,263
148,263
2,927
6%
116,705
2,927
6%
204,120
Gempal
Others
Arcadyan
Hsinchu City
Telecommunication equipment and apparatus
manufacturing, electronic parts and
components manufacturing, restrained
telecom radio frequency equipment and
materials import and manufacturing
306,655
306,655
9,279
4%
717,079
9,279
4% 2,420,569
(720,869)
Allied Circuit
Taoyuan City
Production and selling of PCB boards
53,645
53,645
3,220
6%
128,375
3,220
6%
204,120
Hong Ji
Others
Arcadyan
Hsinchu City
Telecommunication equipment and apparatus
manufacturing, electronic parts and
components manufacturing, restrained
telecom radio frequency equipment and
materials import and manufacturing
306,655
306,655
9,279
4%
717,079
9,279
4% 2,420,569
(975)
Allied Circuit
Taoyuan City
Production and selling of PCB boards
10,389
10,389
851
2%
29,057
1,041
2%
204,120
Hong Jin
Arcadyan
Hsinchu City
Telecommunication equipment and apparatus
manufacturing, electronic parts and
components manufacturing, restrained
telecom radio frequency equipment and
materials import and manufacturing
131,942
131,942
4,609
2%
341,189
4,609
2% 2,420,569
Just
CDH (HK)
Hong Kong
Investment
1,912,845
1,912,845
62,298
100%
8,037,301
62,298
100%
258,934
__________
4,088,258
Investment gain (losses)
recognized by Panpal
(Note 2)
Investment gain (losses)
recognized by Panpal
Investment gain (losses)
recognized by Gempal
(Note 2)
Investment gain (losses)
recognized by Gempal
Investment gain (losses)
recognized by Hong Ji
(Note 2)
(Note 2)
Investment gain (losses)
recognized by Hong Ji
Investment gain (losses)
recognized by Hong Jin
(Note 2)
Investment gain (losses)
recognized by Just
(Note 2)
CII
CPI
CII
Smart
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Investment
Investment
Investment
391,335
283,868
12,745
100%
270,052
12,745
100%
(96,811) Investment gain (losses)
(Note 2)
15,353
15,353
500
100%
15,009
500
100%
1,363
recognized by Just
Investment gain (losses)
recognized by Just
(Note 2)
31
31
1
100%
377
1
100%
AEI
MEL
MTL
CNA
CUS
U.S.A
Sales and maintenance of LCD TVs
-
30,705
1,000
0%
-
1,000
0%
U.S.A
Investment
252,825
252,825
U.S.A
Investment
31
31
U.S.A
Sales of automotive electronic products
76,763
U.S.A
Sales of automotive electronic products
76,763
-
-
-
-
100%
209,575
100%
31
-
-
100%
100%
2,500
100%
76,763
2,500
100%
2,500
100%
(19,631)
2,500
100%
(97,813) Investment gain (losses)
(Note 2)
CIH
CIH (HK)
Hong Kong
Investment
2,296,811
2,296,811
74,803
100%
44,212,065
74,803
100% 2,495,365
(4) Investment gain (losses)
recognized by CII
(Note 2)
-
Investment gain (losses)
recognized by CII
(Note 2)
21
Investment gain (losses)
recognized by CII
(Note 2)
-
-
Investment gain (losses)
recognized by CII
(Note 2)
Investment gain (losses)
recognized by CII
(Note 2)
recognized by CII
Investment gain (losses)
recognized by CIH
(Note 2)
Investment gain (losses)
recognized by CIH
(Note 2)
Investment gain (losses)
recognized by CIH
(Note 2)
Jenpal
PFG
FWT
CCM
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Investment
Investment
Investment
Investment
225,682
225,682
7,350
100%
117,441
7,350
100%
6,055
31
31
1
100%
85,596
1
100%
81,321
457,505
457,505
14,900
100%
457,504
14,900
100%
-
Investment gain (losses)
recognized by CIH
(Note 2)
156,596
156,596
5,100
51%
6,144
5,100
51%
(38,884) Investment gain (losses)
recognized by CIH
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
113
Table 9 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
HSI
IUE
Investee
Company
Goal
CVC
CDM
CMI
PRI
BSH
IUE
Goal
BCI
CORE
Original Investment Amount
Main Businesses
and Products
Depcmber 31,
2023
2,057,235
December 31,
2022
2,057,235
Shares
67,000
Ending Balance
Percentage
of
Ownership
100%
Carrying
Value
1,075,861
The highest holdings in the
period
Percentage of
Ownership
Net income
(losses) of
investee
100%
417,702
Shares
67,000
Share of profits/losses
of investee
Investment gain (losses)
recognized by HSI
Note
(Note 2)
(In Thousands of New Taiwan Dollars/ shares)
389,954
389,954
12,700
100%
333,976
12,700
100%
(4,189) Investment gain (losses)
(Note 2)
Investment
Investment
R&D, manufacturing, sales, and maintenance
of notebook PCs, computer monitors, LCD
TVs and electronic components
Construction of and investment in
infrastructure in Ba-Thien industrial district of
Vietnam
Investment
Investment
Investment
2,057,235
2,057,235
67,000
100%
1,075,861
67,000
100%
417,702
recognized by HSI
Investment gain (losses)
recognized by IUE
(Note 2)
389,954
389,954
12,700
100%
292,617
12,700
100%
(4,189) Investment gain (losses)
(Note 2)
2,481,578
2,481,578
80,820
100%
5,724,519
80,820
100%
329,358
307,050
307,050
10,000
100%
3,403,728
10,000
100%
243,065
4,513,635
4,513,635
147,000
100%
8,079,840
147,000
100%
417,529
recognized by Goal
Investment gain (losses)
recognized by BCI
(Note 2)
Investment gain (losses)
recognized by BCI
(Note 2)
Investment gain (losses)
recognized by CORE
(Note 2)
Location
British Virgin
Islands
British Virgin
Islands
Vietnam
Vietnam
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
BSH
Mithera
Cayman Islands
Investment
155,060
155,060
CIN
HSI
HHB
CEV
Forever
GIA
CWV
U.S.A
Manufaturing
249,632
249,632
Investment
Investment
R&D, manufacturing, sales, and maintenance
of notebook PCs, computer monitors, LCD
TVs, mobile phones, tablet PCs, smart
watches, communication equipment, and
other electronic products
184,230
1,658,070
Selling of mobile phones
-
British Virgin
Islands
British Virgin
Islands
Vietnam
British Virgin
Islands
Vietnam
R&D, manufacturing, sales, and maintenance
of notebook PCs, computer monitors, LCD
TVs and electronic components
61,410
61,410
-
1
99%
136,929
100%
226,337
-
1
99%
(3,437) Investment gain (losses)
(Note 2)
recognized by BSH
100%
11,208
Investment gain (losses)
recognized by BSH
(Note 2)
1,136,085
1,136,085
37,000
46%
960,555
37,000
46%
413,513
Investment gain (losses)
recognized by BSH
(Note 2)
-
-
-
6,000
11%
276,345
6,000
11%
(249,738) Investment gain (losses)
(Note 2)
-
100%
1,694,332
-
-
100%
-
100%
101,047
-
-
-
recognized by BSH
100%
36,796
Investment gain (losses)
recognized by BSH
(Note 2)
100%
-
Investment gain (losses)
recognized by Forever
(Note 2)
100%
2,518
Investment gain (losses)
recognized by Forever
(Note 2)
Webtek
Etrade
British Virgin
Islands
Investment
767,625
767,625
25,000
35%
(154,553)
25,000
35%
(463,604) Investment gain (losses)
(Note 2)
Unicore
Raycore
Taipei City
Animal medication retail and wholesale
-
-
-
0%
-
1,275
100%
Arcadyan
Arcadyan Holding
British Virgin
Islands
Investment
1,071,027
1,071,027
47,780
100%
2,066,961
107,780
100%
186,347
recognized by Webtek
-
Investment gain (losses)
recognized by Unicore
(Note 2)
Investment gain (losses)
recognized by Arcadyan
(Note 2)
Investment gain (losses)
recognized by Arcadyan
(Note 2)
Arcadyan USA
U.S.A
Arcadyan Germany
Germany
Technology support and sales of wireless
network products
Technology support and sales of wireless
network products
23,055
23,055
1
100%
92,028
1
100%
19,720
1,125
1,125
0.5
100%
99,059
Arcadyan Korea
Korea
Sales of wireless network products
2,879
2,879
20
100%
35,156
0.5
20
100%
7,798
Investment gain (losses)
recognized by Arcadyan
(Note 2)
100%
11,668
Investment gain (losses)
recognized by Arcadyan
(Note 2)
Zhi-Bao
Hsinchu City
Investment
48,000
48,000
34,980
100%
343,292
34,980
100%
TTI
Taipei City
R&D and sales of household digital products
308,726
308,726
25,028
61%
153,318
25,028
61%
(63,223) Investment gain (losses)
recognized by Arcadyan
(Note 2)
(79,482) Investment gain (losses)
recognized by Arcadyan
(Note 2)
Arcadyan UK
UK
Technical support of wireless network products
1,988
1,988
50
100%
5,590
Arcadyan AU
Australia
Sales of wireless network products
1,161
1,161
50
100%
69,715
Arcadyan RU
Russia
Sales of wireless network products
7,672
7,672
-
100%
3,212
50
50
-
CBN
Hsinchu County Sales of communication and electronic
11,925
11,925
533
1%
9,061
533
components
100%
561
Investment gain (losses)
recognized by Arcadyan
(Note 2)
100%
8,257
Investment gain (losses)
recognized by Arcadyan
(Note 2)
100%
(1,005) Investment gain (losses)
recognized by Arcadyan
(Note 2)
1%
(331,620) Investment gain (losses)
recognized by Arcadyan
(Note 2)
Arcadyan and
Zhi-Bao
Arcadyan Brasil
Brazil
Sales of wireless network products
81,593
81,593
968
100%
(45,570)
968
100%
Arcadyan India
India
Sales of wireless network products
76,952
29,110
19,800
100%
49,894
19,800
100%
Arcadyan Holding
Sinoprime
TTI
Arch Holding
Quest
TTJC
British Virgin
Islands
British Virgin
Islands
Investment
Investment
891,980
891,980
29,050
100%
1,580,601
29,050
100%
338,093
338,093
35
100%
622,790
35
100%
Samoa
Investment
36,846
36,846
1,200
100%
10,294
1,200
100%
(2,952) Investment gain (losses)
(Note 2)
Japan
Sales of household digital electronic products
9,626
9,626
0.7
100%
2,693
0.7
100%
recognized by TTI
(397) Investment gain (losses)
recognized by TTI
(Note 2)
Quest
Exquisite
Samoa
Investment
35,925
35,925
1,170
100%
9,457
1,170
100%
(2,960) Investment gain (losses)
(Note 2)
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless network products
890,445
890,445
-
100%
1,575,996
-
100%
362,769
recognized by Quest
Investment gain (losses)
recognized by Sinoprime
(Note 2)
Zhi-Bao
CBN
Rayonnant TechnologAPH
Hsinchu County Produces and sales of communication and
electronic components
British Virgin
Islands
Investment
36,272
36,272
13,140
19%
223,285
13,140
19%
(331,620) Investment gain (losses)
(Note 2)
257,454
257,454
8,651
41%
206,209
8,651
41%
41,217
Forming Co., Ltd.
Taoyuan City
R&D and manufacturing of electronic
materials
27,300
27,300
1,820
21%
-
1,820
21%
-
recognized by Zhi-Bao
Investment gain (losses)
recognized by Rayonnant
Technology
Investment gain (losses)
recognized by Rayonnant
Technology
(Note 2)
(Note 2)
(Continued)
(1,032) Investment gain (losses)
recognized by Arcadyan
and Zhi-Bao
(18,275) Investment gain (losses)
recognized by Arcadyan
and Zhi-Bao
Investment gain (losses)
recognized by Arcadyan
Holding
362,862
(270,710) Investment gain (losses)
recognized by Arcadyan
Holding
(Note 2)
(Note 2)
(Note 2)
(Note 2)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
114
Table 9 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
CRH
APH
Investee
Company
APH
PEL
Location
British Virgin
Islands
British Virgin
Islands
Investment
Investment
Original Investment Amount
Main Businesses
and Products
Depcmber 31,
2023
383,813
December 31,
2022
383,813
Shares
12,500
Ending Balance
Percentage
of
Ownership
59%
The highest holdings in the
period
Carrying
Value
Shares
Percentage of
Ownership
Net income
(losses) of
investee
306,661
12,500
59%
41,217
96,751
96,751
3,151
100%
45,559
3,151
100%
1,595
Rayonnant (HK)
Hong Kong
Investment
552,690
552,690
18,000
100%
459,161
18,000
100%
39,622
Share of profits/losses
of investee
Investment gain (losses)
recognized by CRH
Note
(Note 2)
Investment gain (losses)
recognized by APH
(Note 2)
Investment gain (losses)
recognized by APH
(Note 2)
(In Thousands of New Taiwan Dollars/ shares)
HHT
HHA
CBN
HHA
HHB
CBNB
British Virgin
Islands
British Virgin
Islands
Belgium
CBNN
Netherlands
Investment
Investment
The import and export business of broad band
network products and related components, as
well as technical support and advisory services
The import and export business of broad band
network products and related components, as
well as technical support and advisory services
1,429,235
1,429,235
46,882
100%
(1,322,489)
46,882
100%
(234,458) Investment gain (losses)
(Note 2)
recognized by HHT
1,439,513
1,439,513
46,882
89%
(1,584,042)
46,882
89%
(249,738) Investment gain (losses)
(Note 2)
recognized by HHA
6,842
6,842
20
100%
5,266
20
100%
(344) Investment gain (losses)
(Note 2)
recognized by CBN
7,016
7,016
20
100%
6,267
20
100%
(164) Investment gain (losses)
(Note 2)
recognized by CBN
Starmems
Taiwan
R&D of MEMS microphone related products
10,000
10,000
1,000
10%
3,502
1,000
10%
(36,374) Investment gain (losses)
(Note 2)
recognized by CBN
Wah Yuen Technology Holding
Ltd. and its subsidiaries
Mauritius
Investment
2,755,942
2,755,942
95,862
37%
4,231,691
95,862
37%
(677,928) Investment gain (losses)
PT GLB Biotechnology
Indonesia
Indonesia
Manufacturing and wholesale of medical
equipment
88,506
-
42
99%
83,655
42
Taiwan Intelligent Robotics
Company, Ltd.
Taipei City
Manufacturing of equipment and lighting
43,200
43,200
2,160
15%
5,238
2,160
recognized by FGH
99%
20%
351
Investment gain (losses)
recognized by GLB
(Note 2)
(3,360) Investment gain (losses)
recognized by Mactech
(Note 2)
FGH
GLB
Mactech
Poindus Systems
Poindus Investment
Taipei City
Investment holding
4,100
4,100
((cid:3727)3)
100%
496
((cid:3727)3)
100%
(67) Investment gain (losses)
(Note 2)
Poindus UK
UK
Sales of PCs and peripherals
14,297
14,297
300
100%
(11,342)
300
100%
(7,165) Investment gain (losses)
(Note 2)
recognized by Poindus
Systems
Adasys
Germany
Sales of PCs and peripherals
57,712
57,712
0.002
100%
3,314
0.002
100%
(7,306) Investment gain (losses)
(Note 2)
recognized by Poindus
Systems
Poindus Investment Poindus GmbH
Germany
Sales of PCs and peripherals
1,721
1,721
((cid:3727)3)
100%
70
((cid:3727)3)
100%
-
recognized by Poindus
Systems
Investment gain (losses)
recognized by Poindus
Investment
(Note 2)
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.
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
115
Table 10 Information on investment in Mainland China:
(December 31, 2023)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Main businesses and products
Manufacturing and sales of monitors
Total amount of
paid-in capital
1,136,085
Method of
investment
(Note 1)
Accumulated
outflow of
investment from
Taiwan as of
January 1, 2023
1,136,085
Accumulated
outflow of
investment from
Taiwan as of
December 31, 2023
1,136,085
Net income
(losses) of the
investee
204,302
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
204,302
Accumulated
remittance of
earnings in
current period
-
Book value
2,798,518
Investment flows
Outflow Inflow
-
-
(In Thousands of New Taiwan Dollars / shares)
Name of
investee
CPC
CDT
Manufacturing and sales of notebook
PCs, mobile phones, and Digital
products
614,100
(Note 2)
614,100
CET
Manufacturing of notebook PCs
368,460
(Note 2)
368,460
CSD
Research, manufacture and sales of
communication devices, mobile
phones, electronic computer, smart
watch, and provide related technology
service
FIP
Manufacturing of auto parts and
accessories
259,651
(Note 2)
(Note 3)
302,926
(Note 2)
(Note 3)
BT
Manufacturing of notebook PCs
30,705
(Note 2)
30,705
CGS
Maintenance and warranty service of
notebook PCs
8,655
(Note 2)
(Note 3)
982,560
(Note 1)
409,298
-
-
-
-
-
-
-
-
-
-
-
-
-
-
614,100
15,442
100%
15,442
138,610
368,460
87,694
100%
87,694
5,053,795
-
125,012
100%
125,012
404,180
-
(1,443)
60%
(866)
258,799
30,705
17,294
100%
17,294
(98,654)
-
23,859
100%
23,859
(14,311)
409,298
(626,184)
43%
(270,386)
28,494
614,100
(Note 1)
45,136
-
-
45,136
(543,490)
48%
(258,701)
47,562
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; 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
368,460
(Note 2)
368,460
CPO
Manufacturing and sales of LCD TVs
371,531
(Note 1)
371,531
CIT
Manufacturing of notebook PCs
736,920
(Note 2)
736,920
CST
International trade and distribution of
computers and electronic components
42,987
(Note 2)
42,987
Sheng Bao Precision
Electronics (Taicang)
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
307,050
(Note 2)
156,596
CIJ
Investment and consulting services
478,998
(Note 2)
478,998
CDE
Manufacturing and sales of LCD TVs
460,575
(Note 2)
(Note 3)
CIS
CEC
CMC
CEQ
Outward investment and consulting
services
2,481,578
(Note 1)
2,481,578
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
2,456,400
(Note 2)
(Note 3)
24,564
(Note 2)
(Note 3)
307,050
(Note 1)
307,050
Compal Precision
Module (Jiangsu)
Co., Ltd.
Changbao Electronic
Technology
(Chongqing) Co.,
Ltd.
Manufacturing and selling of
magnesium alloy injection molding
12,896,100
(Note 2)
2,537,062
Production and marketing of
magnesium alloy molding
1,842,300
(Note 2)
351,756
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
368,460
551,963
100%
551,963
10,930,283
371,531
125,216
100%
125,216
3,111,095
736,920
1,845,493
100% 1,845,493
27,565,297
42,987
(691)
100%
(691)
44,382
156,596
(47,084)
51%
(24,013)
12,056
478,998
(92,422)
100%
(92,422)
2,551,776
-
(92,361)
100%
(92,361)
2,516,825
2,481,578
329,358
100%
329,358
5,724,519
-
328,816
100%
328,816
5,692,814
-
572
100%
572
25,360
307,050
243,065
100%
243,065
3,403,728
2,537,062
(538,847)
37%
(197,326)
5,233,177
351,756
(69,403)
37%
(25,416)
630,376
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
116
Table 10 Information on investment in Mainland China:
(December 31, 2023)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Name of
investee
Rayonnant (Taicang)
Main businesses and products
Manufacturing and sales of aluminum
alloy and magnesium alloy products
Total amount of
paid-in capital
552,690
Method of
investment
(Note 2)
(In Thousands of New Taiwan Dollars / shares)
Accumulated
outflow of
investment from
Taiwan as of
January 1, 2023
383,813
Accumulated
outflow of
investment from
Taiwan as of
December 31, 2023
383,813
Net income
(losses) of the
investee
39,622
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
39,622
Accumulated
remittance of
earnings in
current period
-
Book value
459,761
Investment flows
Outflow Inflow
-
-
CCI Nanjing
Manufacturing and processing of
mobile phones and tablet PCs
829,035
(Note 1)
675,510
CDCN
Manufacturing and processing of
mobile phones and tablet PCs
178,089
(Note 1)
178,089
CWCN
Manufacturing and processing of
mobile phones and tablet PCs
1,504,545
(Note 1)
583,395
Hanhelt
R&D and manufacturing of electronic
communication equipment
61,410
(Note 1)
61,410
Arcadyan
SVA Arcadyan
R&D and sales of wireless network
products
248,711
(Note 1)
412,061
(Note 7)
CNC
Manufacturing and wireless network
products
382,277
(Note 1)
338,093
THAC
Manufacturing of household
electronics products
371,684
(Note 1(cid:501)
9(cid:501)10)
(Note 8)
35,311
HengHao
HengHao Kunshan
Production of touch panels and related
components
1,228,200
(Note 1)
1,222,151
HengHao Zhejiang Production of touch panels and related
276,345
(Note 2)
(Note 3)
components
Lucom
Manufacturing of notebook PCs and
related modules
460,575
(Note 2)
199,552
(Note 12)
Poindus Systems
Qijie
Sales of PCs and peripherals
30,705
(Note 1)
30,705
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
675,510
(119,549)
100%
(119,549)
(1,301,309)
178,089
(4,985)
100%
(4,985)
84,009
583,395
(331,697)
100%
(331,697)
738,240
61,410
2,929
100%
2,929
2,456
412,061
6,885
100%
6,885
41,114
338,093
(207,710)
100%
(207,710)
622,790
35,311
(4,331)
100%
(4,331)
27,020
1,222,151
(249,493)
100%
(249,493)
(1,477,911)
-
(1,333)
100%
(1,333)
275,032
199,552
1,039
100%
1,039
141,779
-
-
-
-
-
-
-
-
-
30,705
(2,051)
100%
(2,051)
9,589
-
(ii) Limitation on investment in Mainland China:
Names of
Company
The Company
Arcadyan
HengHao
Poindus Systems
Accumulated Investment in Mainland China
as of December 31, 2023
16,658,599
(Note 5)
785,465
1,439,205
30,705
(US$542,537)
(US$25,581)
(US$46,872)
(US$1,000)
Investment Amounts Authorized by Investment Commission
of Ministry of Economic Affairs
24,221,609 (US$788,849)
Limitation on investment in Mainland China by
Investment Commission of Ministry of Economic Affairs
(Note 6)
(In Thousands of USD)
1,054,287 (US$34,336)
1,439,205 (US$46,872)
30,705 (US$1,000)
8,881,334
(Note 13)
322,110
Note 1(cid:28873)
Indirectly investment in Mainland China through companies registered in the third region.
Note 2(cid:28873)
Indirectly investment in Mainland China through an existing company registered in the third region.
Note 3(cid:28873)
Note 4(cid:28873)
Note 5(cid:28873)
Note 6(cid:28873)
Note 7(cid:28873)
Investees held by Kunshan Botai Electronics Co., Ltd. (“BT”), Compal Investment (Jiansu) Co., Ltd. (“CIJ”), Compal Electronic (Sichuan) Co., Ltd. (“CIS”), Compal Electronics (China) Co., Ltd.
(“CPC”) and Compal Smart Device (Chongqing) Co., Ltd. (“CSD;”) 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.
Note 8(cid:28873)
Arcadyan paid US$8,561 thousand and acquired 100% shares of CNC from Just through Arcadyan Holding in 2007.
Note 9(cid:28873)
Arcadyan’s subsidiary, TTI, obtained the control over THAC with US$1,150 thousand on February 28, 2013 (the date of stock transferring).
Note 10(cid:28873)
Arcadyan’s subsidiary, TTI, increase the capital of TCH by accounts receivable of TTI amounting to US$8,755 thousands on August 16, 2023.
Note 11(cid:28873)
The amounts in New Taiwan Dollars were translated at the exchange rates at the balance sheet date or the average exchange rate.
Note 12(cid:28873)
Note 13(cid:28873)
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, 2023.
(iii) Significant transactions:
For the year ended December 31, 2023, 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”.
Attachment II
1
Stock Code:2324
COMPAL ELECTRONICS, INC.
Parent Company Only Financial Statements
With Independent Auditors’ Report
For the Years Ended December 31, 2023 and 2022
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 material 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
8～9
9～28
28～29
29～63
64～72
72
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
74、87～97
74、98～103
74、104～105
74
74～75
76～86
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 sheet as of December 31, 2023 and 2022, the statement of comprehensive income, changes in equity
and cash flows for the years then ended, and notes to the financial statements, including a summary of material
policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as of December 31, 2023 and 2022, and its financial performance and its cash flows
for the years then ended December 31, 2023 and 2022, 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 Financial Statement Audit and
Attestation Engagements of Certified Public Accountants and 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 Accountant of the Republic of China, and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis of our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
Inventory valuation
Please refer to Note (4)(g) and Note (5) for the accounting policy of inventory valuation, as well as the
estimation and assumption uncertainty of the valuation of inventory, respectively. Information of estimation
of the valuation of inventory are disclosed in Note (6)(f) of the financial statements.
Description of key audit matters:
The inventory is measured at the lower of cost or net realizable value. The short life cycle of electronic
products may cause significant changes in customers’ demand and sales of related products. Consequently,
the book value of inventory may be lower than the net realizable value of inventory. Therefore, the valuation
of inventory is one of the key audit matters.
3-1
Our key audit procedures performed in respect of the above area included the following:
In order to verify the rationality of assessment of inventory valuation estimated by the Company, our key
audit procedures included reviewing the consistency of prior year and accounting policy, inspecting the
Company’s inventory aging reports, analyzing the change of inventory aging, 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 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)
February 29, 2024
The accompanying parent company only financial statements are intended only to present the financial position, financial performance
and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of
any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those
generally accepted and applied in the Republic of China.
Notes to Readers
COMPAL ELECTRONICS, INC.
Balance Sheets
December 31, 2023 and 2022
(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, 2023
Amount
%
December 31, 2022
Amount
%
$
20,511,690
5.4
30,965,694
8.2
171,591,962
45.4
169,758,431
44.7
11,475,862
3,951,773
3.0
1.1
13,277,948
3,862,484
3.5
1.0
51,043,492
13.5
53,064,157
14.0
1,278,640
0.3
900,626
0.2
259,853,419
68.7
271,829,340
71.6
Investments accounted for using equity method (note (6)(g))
105,496,882
27.9
98,259,876
25.9
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
337,855
6,197,710
2,234,288
1,033,301
349,922
2,568,652
0.1
1.6
0.6
0.3
0.1
0.7
221,733
-
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
118,440,343
31.3
107,704,071
28.4
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, 2023
Amount
%
December 31, 2022
Amount
%
$
46,917,800
12.4
53,068,579
14.0
697,526
80,947,046
82,364,436
12,332,111
3,781,754
352,900
1,375,360
2,763,469
10,742,300
0.2
21.4
21.8
3.3
1.0
0.1
0.4
0.7
2.8
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
242,274,702
64.1
248,511,419
65.5
12,525,000
1,785,947
688,466
568,883
828,769
16,397,065
3.3
0.5
0.2
0.1
0.2
4.3
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
258,671,767
68.4
263,238,657
69.4
44,071,466
11.7
44,071,466
11.6
4,270,915
1.0
5,078,580
1.3
72,548,155
19.2
69,969,059
18.4
(387,294)
(0.1)
(1,943,104)
(0.5)
(881,247)
(0.2)
(881,247)
(0.2)
119,621,995
31.6
116,294,754
30.6
Total assets
$
378,293,762
100.0
379,533,411
100.0
Total liabilities and equity
$
378,293,762
100.0
379,533,411
100.0
See accompanying notes to financial statements.
COMPAL ELECTRONICS, INC.
Statements of Comprehensive Income
For the years ended December 31, 2023 and 2022
(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:
2023
2022
Amount
%
Amount
%
$ 874,914,215 100.0 1,003,642,791 100.0
846,864,149
96.8
975,074,956
97.2
28,050,066
3.2
28,567,835
2.8
4,668,460
2,966,700
13,086,935
20,722,095
7,327,971
1,001,520
46,734
0.5
0.4
1.5
2.4
0.8
0.1
-
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
(4,059,174)
(0.5)
(2,546,827)
(0.3)
304,391
4,088,258
1,381,729
8,709,700
1,042,073
7,667,627
0.1
0.5
0.2
1.0
0.1
0.9
334,311
1,826,023
771,589
8,033,612
745,320
7,288,292
-
0.2
-
0.7
0.1
0.6
Components of other comprehensive income (loss) that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans
(12,857)
-
134,331
-
Unrealized gains (losses) from investments in equity instruments measured at fair value through other
comprehensive income
828,717
0.1
(610,977)
(0.1)
4000
5000
6100
6200
6300
7100
7020
7050
7190
7370
7900
7950
8300
8310
8311
8316
8330
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
463,228
119,156
-
-
(434,424)
3,589
-
-
Components of other comprehensive income that will not be reclassified to profit or loss (note (6)(p))
1,159,932
0.1
(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
(376,004)
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
107,239
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
-
(268,765)
891,167
8,558,794
$
$
$
-
-
-
-
0.1
1.0
1.76
1.75
7,183,714
0.7
78,865
-
7,262,579
6,347,920
13,636,212
-
-
0.7
0.6
1.2
1.67
1.66
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, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars)
Retained earnings
Balance at January 1, 2022
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
Balance at December 31, 2022
Profit for the year ended December 31, 2023
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Reversal of special reserve
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
6,724,856
-
-
-
-
-
-
(1,762,859)
33,397
(18,066)
100,035
1,217
-
5,078,580
-
-
-
-
-
-
(881,429)
2,213
10,490
60,021
1,040
Legal
reserve
21,339,412
-
-
-
1,237,434
-
-
-
-
-
-
-
-
22,576,846
-
-
-
736,855
-
-
-
-
-
-
-
comprehensive income
Balance at December 31, 2023
-
$ 44,071,466
-
4,270,915
-
23,313,701
Special
reserve
7,266,708
-
-
-
-
940,042
-
-
-
-
-
-
-
8,206,750
-
-
-
-
(6,263,646)
-
-
-
-
-
-
-
1,943,104
Unappropriated
retained
earnings
41,045,820
7,288,292
118,035
7,406,327
(1,237,434)
(940,042)
(7,051,435)
(2,260)
(38,351)
-
-
-
Total
retained
earnings
69,651,940
7,288,292
118,035
7,406,327
-
-
(7,051,435)
-
(2,260)
(38,351)
-
-
2,838
39,185,463
7,667,627
(2,238)
7,665,389
2,838
69,969,059
7,667,627
(2,238)
7,665,389
(736,855)
6,263,646
(4,407,147)
(16,652)
(16,991)
-
-
-
-
-
(4,407,147)
-
(16,652)
(16,991)
-
-
(645,503)
47,291,350
(645,503)
72,548,155
See accompanying notes to financial statements.
6
Total other equity interest
Unrealized
gains
(losses) on
financial
assets
measured at
fair value
through other
comprehensive
income
Others
Exchange
differences on
translation of
foreign
financial
statements
Total other
equity
interest
(8,744,705)
-
7,274,994
7,274,994
537,830
-
(1,032,694)
(1,032,694)
125
(8,206,750)
-
(12,415)
(12,415)
-
6,229,885
6,229,885
Treasury
shares
Total equity
(881,247) 111,360,265
7,288,292
6,347,920
13,636,212
-
-
-
-
-
-
-
-
-
-
-
-
(1,469,711)
-
(277,619)
(277,619)
-
-
-
-
-
-
-
-
-
(1,747,330)
-
-
-
-
-
-
-
36,599
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,599
(2,838)
(461,103)
-
1,162,170
1,162,170
-
(12,290)
-
8,854
8,854
(2,838)
(1,943,104)
-
893,405
893,405
-
-
-
-
-
-
3,469
13,433
645,503
1,363,472
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,469
13,433
(3,436)
645,503
(387,294)
-
-
-
-
-
-
-
-
-
-
-
(7,051,435)
(1,762,859)
31,137
(19,818)
100,035
1,217
-
(881,247) 116,294,754
7,667,627
891,167
8,558,794
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,407,147)
(881,429)
(10,970)
6,932
60,021
1,040
-
(881,247) 119,621,995
COMPAL ELECTRONICS, INC.
Statements of Cash Flows
For the years ended December 31, 2023 and 2022
(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 (gain) loss 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:
(Increase) decrease in notes and accounts receivable
Decrease in other receivables
Decrease in inventories
Increase in other current assets
Total changes in operating assets
Changes in operating liabilities:
Increase (decrease) in notes and accounts payable
(Decrease) increase in other payables
Increase in refund liabilities
Decrease in contract liabilities
(Decrease) 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 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
Proceeds from disposal of property, plant and equipment
Increase 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 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 financing activities
Net (decrease) increase 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
2023
2022
$
8,709,700
8,033,612
1,343,643
49,027
(47,871)
4,059,174
(1,001,520)
(90,278)
(4,088,258)
340
224,257
(76,980)
255,955
2,020,665
(432,044)
1,767,596
9,129,059
(600,839)
751,240
(2,520)
(630,456)
(10,915)
8,635,569
10,403,165
10,627,422
19,337,122
945,368
832,126
(4,246,023)
(1,468,963)
15,399,630
(2,326,911)
47,921
(3,979,240)
3,420
(256,391)
65,706
(101,447)
(337,007)
168,895
(6,715,054)
(6,150,779)
44,267,025
(51,524,725)
(438,966)
(5,288,576)
(2,559)
(19,138,580)
(10,454,004)
30,965,694
20,511,690
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
$
COMPAL ELECTRONICS, INC.
Notes to the Financial Statements
For the years ended December 31, 2023 and 2022
(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 February 29, 2024.
(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, 2023:
● 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”
In addition, the Company has adopted Amendments to IAS 12 “International Tax Reform – Pillar
Two Model Rules” on May 23, 2023. The amendments provide a temporary mandatory exception
from deferred tax accounting for the top-up tax, which applies retrospectively, and require new
disclosures about the Pillar Two exposure for annual reporting periods beginning on or after January
1, 2023. However, because on December 31, 2023, no new legislation to implement the top-up tax
was enacted or substantively enacted in any jurisdiction in which the Company operates and no
related deferred taxes were recognized at that date, the retrospective application has no impact on the
parent-company-only financial statements. The Company is closely monitoring developments related
to the implementation of the international tax reforms introducing a global minimum top-up tax.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
9
(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, 2024, would not have a significant impact on its financial statements:
● Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
● Amendments to IAS 1 “Non-current Liabilities with Covenants”
● Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
● Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC
The Company does not expect the following new and amended standards, which have yet to be
endorsed by the FSC, to have a significant impact on its financial statements:
● Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and
Its Associate or Joint Venture”
● IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
● Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative
Information”
● Amendments to IAS21 “Lack of Exchangeability”
(4)
Summary of material accounting policies:
The material 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)
Financial instruments measured at fair value through profit or loss are measured at fair
value;
Financial assets at fair value through other comprehensive income are measured at fair
value;
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
10
3)
The defined benefit liabilities (assets) are measured at fair value of the plan assets less
the present value of the defined benefit obligation, limited as explained in note (4)(q).
(ii) Functional and presentation currency
The functional currency of the Company is determined based on the primary economic
environment in which the Company operates. The parent-company-only financial statements
are presented in New Taiwan Dollar, which is the Company’ s functional currency. All
financial information presented in New Taiwan Dollar has been rounded to the nearest
thousand.
(c)
Foreign currency
(i)
Foreign currency transaction
Transactions in foreign currencies are translated to the respective functional currencies of the
Company at exchange rates at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are retranslated to the functional
currency at the exchange rate at that date. The foreign currency gain or loss on monetary items
is the difference between the amortized cost in the functional currency at the beginning of the
year adjusted for the effective interest and payments during the period, and the amortized cost
in foreign currency translated at the exchange rate at the reporting date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency at the exchange rate at the date that the fair
value was determined. Non-monetary items in a foreign currency that are measured based on
historical cost are translated using the exchange rate at the date of translation.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
11
When a foreign operation is disposed of such that control, significant influence or joint control
is lost, the cumulative amount in the translation reserve related to that foreign operation is
reclassified to profit or loss as part of the gain or loss on disposal. When the Company
disposes of any part of its interest in a subsidiary that includes a foreign operation while
retaining control, the relevant proportion of the cumulative amount is reattributed to non-
controlling interest. When the Company disposes of only part of investment in an associate of
joint venture that includes a foreign operation while retaining significant or joint control, the
relevant proportion of the cumulative amount is reclassified to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign operation is
neither planned nor likely in the foreseeable future, foreign currency gains and losses arising
from such items are considered to form part of a net investment in the foreign operation and
are recognized in other comprehensive income, and presented in the translation reserve in
equity.
(d) Classification of current and non-current assets and liabilities
An asset is classified as current under one of the following criteria, and all other assets are classified
as non-current.
(i)
It expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(ii)
It holds the asset primarily for the purpose of trading;
(iii)
It expects to realize the asset within twelve months after the reporting period; or
(iv) The asset is cash and cash equivalent unless the asset is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting period.
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.
Time deposits which meet the above definition and are held for the purpose of meeting short-term
cash commitments rather than for investment or other purposes are reclassified as cash equivalents.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
12
(f)
Financial instruments
(i)
Financial assets
Financial assets are classified into the following categories: measured at amortized cost, fair
value through other comprehensive income (“ FVOCI” ) and fair value through profit or loss
(“FVTPL”).
The Company shall reclassify all affected financial assets only when it changes its business
model for managing its financial assets.
1)
Financial assets measured at amortized cost
A financial asset is measured at amortized cost if it meets both of the following
conditions and is not designated as at FVTPL:
• it is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
•its contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) 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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
13
A financial asset measured at FVOCI is initially recognized at fair value, plus any
directly attributable transaction costs. These assets are subsequently measured at fair
value. Interest income calculated using the effective interest method, foreign exchange
gains and losses, and impairment losses, deriving from debt investments are recognized
in profit or loss; whereas dividends deriving from equity investments are recognized as
income in profit or loss, unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses of financial assets measured at FVOCI
are recognized in OCI. On derecognition, gains and losses accumulated in OCI of debt
investments are reclassified to profit or loss. However, gains and losses accumulated in
OCI of equity investments are reclassified to retain earnings instead of profit or loss. A
regular way purchase or sale of financial assets is recognized and derecognized, as
applicable, using trade date accounting.
Dividend income derived from equity investments is recognized on the date that the
Company’s right to receive payment is established, which in the case of quoted securities
is normally the date the shareholders' meeting approved the earning distribution.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
14
Loss allowance for trade receivables and contract assets are always measured at an
amount equal to lifetime ECL.
Lifetime ECLs are the ECLs that result from all possible default events over the expected
life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 month after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual
period over which the Company is exposed to credit risk.
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;
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
15
• the lender of the borrower, for economic or contractual reasons relating to the
borrower's financial difficulty, having granted to the borrower a concession that the
lender would not otherwise consider;
• it is probable that the borrower will enter bankruptcy or other financial
reorganization; or
• the disappearance of an active market for a security because of financial difficulties.
Loss allowances for financial assets measured at amortized cost are deducted from the
gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is
recognized in other comprehensive income instead of reducing the carrying amount of
the asset. The Company recognizes the amount of expected credit losses (or reversal) in
profit or loss, as an impairment gain or loss.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
16
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
17
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
18
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.
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
19
(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
20
(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
21
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.
(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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
22
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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
23
(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.
(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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
24
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
25
(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.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
26
(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.
The Company has determined that the global minimum top-up tax – which it is required to pay under
Pillar Two legislation – is an income tax in the scope of IAS 12. The Company has applied a
temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and
accounts for it as a current tax when it is incurred.
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)
Temporary differences on the initial recognition of assets and liabilities in a transaction that is
not a business combination and at the time of the transaction (i) affects neither accounting nor
taxable profits (losses) and (ii) does not give rise to equal taxable and deductible temporary
differences.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
27
(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
28
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
29
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, 2023
December
31, 2022
$
$
2,399
17,422,781
2,472,410
614,100
20,511,690
3,504
27,183,895
652,991
3,125,304
30,965,694
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
30
(b)
Financial assets at fair value through profit or loss
Non-current financial assets 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, 2023
December
31, 2022
$
$
158,680
179,175
337,855
117,150
132,417
249,567
For the market risk related to the financial instruments, please refer to note (6)(v).
As of December 31, 2023 and 2022, 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, 2023
December
31, 2022
$
2,752,235
1,688,060
2,906,241
276,342
262,892
579,341
782,312
84,127
$
6,197,710
3,133,840
The purpose that the Company invests in the abovementioned equity securities is for long-term
strategies, but rather for trading purpose. Therefore, these equity securities are designated as at
FVOCI.
For the year ended December 31, 2022, 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 gain of $2,838,
which was reclassified from other comprehensive income to retained earnings.
For the year ended December 31, 2023, the Company has sold all of its shareholdings, measured at
fair value through other comprehensive income, in Genovior Biotech Corp. The fair value of the
shares upon disposal amounted to $47,921, resulting in a cumulative gain of $17,790, which was
reclassified from other comprehensive income to retained earnings.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
31
The Company held the shareholdings, measured at fair value through other comprehensive income,
in Taiwan Star Telecom Corporation Limited (“Taiwan Star”), which was absorbed and merged by
Taiwan Mobile Co., Ltd. (“Taiwan Mobile”) on December 1, 2023, as the date of the merger. In this
stock swap case, the shareholdings of Taiwan Star were exchanged for the exchange consideration of
$317,172 on the date of the merger, resulting in a cumulative loss on disposal of $663,293, which
was reclassified from other equity 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, 2023 and 2022, will be $309,886 and $156,692, 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, 2023 and 2022, the Company did not provide any financial assets at fair value
through other comprehensive income as collaterals for its loans.
(d) Notes and accounts receivable
Accounts receivable – measured at amortized cost
Accounts receivable – fair value through other comprehensive
income
Less: allowance for uncollectible accounts
December
31, 2023
$ 158,625,335
December
31, 2022
170,615,775
28,158,504
16,091,084
186,783,839
186,706,859
(3,691,908)
(3,642,881)
recorded as credit balance of investments in equity method
(24,107)
(27,599)
Notes and accounts receivable, net
$ 183,067,824
183,036,379
$ 171,591,962
169,758,431
Notes and accounts receivable – related parties, net
$
11,475,862
13,277,948
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
32
The loss allowance provision of notes and accounts receivable were determined as follows:
Carrying
amount of
notes and
accounts
receivable
176,317,572
6,847,571
3,618,696
186,783,839
Carrying
amount of
notes and
accounts
receivable
176,980,832
6,102,290
3,623,737
186,706,859
$
$
$
$
December 31, 2023
Weighted-
average
ECL rate
0%
1.069%
100%
Lifetime ECLs
-
73,212
3,618,696
3,691,908
Credit-
impaired
No
No
Yes
December 31, 2022
Weighted-
average
ECL rate
0%
0.314%
100%
Lifetime ECLs
-
19,144
3,623,737
3,642,881
Credit-
impaired
No
No
Yes
Credit rating
Level A
Level B
Level C
Credit rating
Level A
Level B
Level C
The aging analysis of notes and accounts receivable, were determined as follows:
Overdue 1 to 180 days
December
31, 2023
December
31, 2022
$
1,419,193
1,306,052
The movements in the allowance for notes and accounts receivable were as follow:
Balance at January 1
Impairment losses recognized
Balance at December 31
2023
2022
3,642,881
3,632,789
49,027
10,092
3,691,908
3,642,881
$
$
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
33
The Company entered into accounts receivable factoring agreements with banks. As of December
31, 2023 and 2022, except for the amount used under the actual sales amount in accordance with
certain agreements, the factoring amount granted by the banks were USD 2,100,000 thousands and
USD 1,600,000 thousands, respectively. Based on the agreements, the Company is not responsible
for guaranteeing the ability of the accounts receivable obligor to make payment when it is affected
by credit risk. Thus, this is a non-recourse accounts receivable factoring. The Company
derecognized the above account receivables because it has transferred substantially all of the risks
and rewards of their ownership and it does not have any continuing involvement in them. After the
transfer of the accounts receivable, the Company can request partial advanced amount, while the
interest calculated at an agreed rate is paid to the bank in the period during the time of receiving
advance and the accounts receivable is collected. The remaining amounts with no advance are
received when the accounts receivable are settled by the customers. As of December 31, 2023 and
2022, accounts receivable factored were recovered.
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, 2023 and 2022, 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 $ 13,185,468
Accounts
receivable
factored
(gross)
Purchaser
Financial
Institution $ 30,110,005
December 31, 2023
Amount advanced
Paid
Unpaid
Amount
recognized
in other
receivables
Amount
Collateral
derecognized Interest rate
-
13,185,468
-
-
13,185,468 6.01%~6.20%
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%
As of December 31, 2023 and 2022, 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, 2023
December
31, 2022
$
$
3,208,385
281,621
461,767
3,951,773
2,979,700
221,214
661,570
3,862,484
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
34
As of December 31, 2023 and 2022, none of other receivables were past due.
(f)
Inventories
Finished goods
Work in progress
Raw materials
December
31, 2023
10,291,518
1,414,789
39,337,185
51,043,492
$
$
December
31, 2022
15,471,653
1,276,477
36,316,027
53,064,157
(i) During the years ended December 31, 2023 and 2022, inventory cost recognized as cost of
sales amounted to $846,864,149 and $975,074,956, respectively.
(ii) Due to sale and scrap of slow-moving inventories, the net realizable value of inventory
recovered, and the reversal of inventory write-down and slow-moving losses amounted to
$1,775,969 for the year ended December 31, 2023. The loss due to the write-down of
inventories to net realizable value amounted $937,684 for the year ended December 31, 2022.
(iii) As of December 31, 2023 and 2022, the Company did not provide any inventories as
collaterals for its loans.
(g)
Investments accounted for using equity method
A summary of the Company’s financial information for equity-accounted investees at the reporting
date is as follows:
Subsidiaries
Associates
Plus: Recorded as accounts receivable and other receivables-related
parties
Credit balance of investments in equity method (recorded as
other non-current liability)
Less: unrealized profits or losses
December
31, 2023
$ 101,604,769
December
31, 2022
93,821,244
3,051,907
3,259,336
104,656,676
97,080,580
224,107
227,599
827,770
(211,671)
961,854
(10,157)
$ 105,496,882
98,259,876
(i)
Subsidiaries
Please refer to the consolidated financial statement for the year ended December 31, 2023.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
35
(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, 2023
December
31, 2022
$
$
1,574,448
1,783,426
3,357,874
1,031,010
1,214,819
2,245,829
2)
The Company’s share of the net gain (loss) of associates was as follows:
The Company’s share of the loss of associates
2023
(269,077)
$
2022
(179,262)
3)
The Company’ s financial information for investments accounted for using the equity
method that are individually immaterial was as follows:
Carrying amount of individually immaterial associates
$
3,051,907
3,259,336
December
31, 2023
December
31, 2022
The Company’s share of the net income (loss) of
associates:
2023
2022
Loss from continuing operations
Other comprehensive income (loss)
Total comprehensive income (loss)
$
$
(269,077)
(179,262)
2,077
(267,000)
149,704
(29,558)
(iii) As of December 31, 2023 and 2022, 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
on March 7, 2022. 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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
36
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)
Cancellation of subsidiaries’ restricted shares and conversion of convertible bonds
Arcadyan Technology Corp. (“Arcadyan”) canceled 30 thousand restricted shares in the
year ended December 31, 2022. Whereas, Arcadyan issued 3,892 thousand new shares
due to the conversion of convertible bonds during 2022. This event resulted in a decrease
of 0.59% the ownership of the Company and its subsidiaries in Arcadyan in the year
ended December 31, 2022.
Compal Broadband Network Inc. (“ CBN” ) canceled 364 thousand and 469 thousand
restricted shares in the years ended December 31, 2023 and 2022. These two events,
respectively, resulted in an increase of 0.32% and 0.43% the ownership of the Company
and its subsidiaries in CBN in the years ended December 31, 2023and 2022.
2)
Issuance of new shares for cash of subsidiaries
The Company purchased newly issued shares of Aco Smartcare Co., Ltd. (“ Aco
Smartcare”) amounting to $69,083 at a percentage different from its existing ownership
percentage in July, 2023, resulting in an increase in the ownership of the Company in
Aco Smartcare from 52.04% to 71.46%.
3)
The acquisition of additional equity in the subsidiary
In June 2022, the Company acquired 0.12% of equity interest in General Life
Biotechnology Co., Ltd. (“ GLB” ) from minority shareholders with $700 in cash,
increasing equity from 50.00% to 50.12%.
4)
The following summarizes the effect of changes in equity of the Company due to changes
in the ownership interest of subsidiaries:
Capital surplus – changes in ownership interest in
subsidiaries
Retained earnings
2023
2022
$
$
2,213
(16,652)
(14,439)
33,397
(2,260)
31,137
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
37
(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, 2023 and 2022, were as follows:
Cost:
Balance on January 1, 2023
Additions
Disposals and derecognitions
Reclassifications
Balance on December 31, 2023
Balance on January 1, 2022
Additions
Disposals and derecognitions
Reclassifications
Balance on December 31, 2022
Depreciation and impairments loss:
Balance on January 1, 2023
Depreciation for the period
Disposals and derecognitions
Balance on December 31, 2023
Balance on January 1, 2022
Depreciation for the period
Disposals and derecognitions
Reclassifications
Balance on December 31, 2022
Carrying amounts:
Balance on December 31, 2023
Balance on January 1, 2022
Balance on December 31, 2022
Buildings
and building
improvement
Other
equipment
Land
Under
construction
and
prepayment
for purchase of
equipment
Total
$
1,047,797
2,449,934
3,042,254
23,257
6,563,242
-
-
-
3,384
178,319
74,688
256,391
(16,139)
(362,323)
-
(378,462)
10,719
59,170
(69,889)
-
$
$
1,047,797
2,447,898
2,917,420
28,056
6,441,171
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
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
1,650,666
2,495,267
90,763
295,867
(16,139)
(309,541)
1,725,290
2,481,593
1,682,354
2,254,406
110,767
275,322
(99,968)
(76,948)
(42,487)
42,487
1,650,666
2,495,267
-
-
-
-
-
-
-
-
-
4,145,933
386,630
(325,680)
4,206,883
3,936,760
386,089
(176,916)
-
4,145,933
1,047,797
1,047,797
1,047,797
722,608
874,044
799,268
435,827
535,646
546,987
28,056
2,234,288
27,476
2,484,963
23,257
2,417,309
As of December 31, 2023 and 2022, 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
38
(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, 2023
Additions
Deductions
Balance on December 31, 2023
Balance on January 1, 2022
Additional
Deductions
Balance on December 31, 2022
Depreciation:
Balance on January 1, 2023
Depreciation for the period
Deductions
Balance on December 31, 2023
Balance on January 1, 2022
Depreciation for the period
Deductions
Balance on December 31, 2022
Carrying amount:
Balance on December 31, 2023
Balance on January 1, 2022
Balance on December 31, 2022
$
$
$
$
$
$
$
$
$
$
$
2,068,450
478,563
(462,408)
2,084,605
2,263,891
151,796
(347,237)
2,068,450
1,040,187
435,903
(423,802)
1,052,288
927,542
440,095
(327,450)
1,040,187
1,032,317
1,336,349
1,028,263
28,723
-
(26,659)
2,064
28,374
532
(183)
28,723
23,620
4,119
(26,659)
1,080
17,464
6,156
-
23,620
984
10,910
5,103
2,097,173
478,563
(489,067)
2,086,669
2,292,265
152,328
(347,420)
2,097,173
1,063,807
440,022
(450,461)
1,053,368
945,006
446,251
(327,450)
1,063,807
1,033,301
1,347,259
1,033,366
(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, 2023
46,917,800
$
December
31, 2022
53,068,579
$ 106,729,000
94,657,000
1.62%~6.15% 1.45%~5.38%
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
39
(m) Long-term borrowings
The details of long-term borrowings were as follows:
Unsecured bank loans
December 31, 2023
Currency
TWD
Range of annual
interest rates
1.64%~2.10%
Maturity year
2024~2027
Unsecured bank loans
USD
6.10%
2024
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
Amount
21,425,000
1,842,300
(10,742,300)
12,525,000
21,725,000
Amount
30,525,000
(19,300,000)
11,225,000
12,969,000
$
$
$
$
$
$
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, 2023
December
31, 2022
$
$
352,900
688,466
249,553
791,427
Interest on lease liabilities
Expenses relating to leases of low-value assets or short-term
leases
2023
2022
$
$
14,735
21,770
15,115
9,113
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
40
The amounts recognized in the statement of cash flows for the Company was as follows:
Total cash outflow for leases
(i)
Building leases
2023
2022
$
475,471
463,819
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, 2023
(1,173,609)
December
31, 2022
(1,185,366)
604,726
618,425
(568,883)
(566,941)
$
$
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
41
The balance of the Company’ s labor pension reserve account in the Bank of Taiwan
amounted to $581,007 (excluding the ending balance of interest receivable) as of
December 31, 2023. 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
$
(1,185,366)
2023
Current service costs and interest
Remeasurements of net benefit liabilities
Benefit paid by the plan
(22,953)
(16,367)
51,077
2022
(1,318,160)
(13,894)
87,865
58,823
Defined benefit obligations on December 31
$
(1,173,609)
(1,185,366)
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:
2023
2022
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
$
$
618,425
9,811
3,510
24,057
(51,077)
604,726
602,029
4,317
46,466
24,436
(58,823)
618,425
4)
Expenses recognized in profit or loss
The expenses recognized in profit or loss for the Company were as follows:
2023
2022
Current service cost
Net interest on the net defined benefit liability
(asset)
Cost of sales
Selling expenses
Administrative expenses
Research and development expenses
$
$
$
$
3,711
9,431
13,142
427
612
3,270
8,833
13,142
3,952
5,625
9,577
351
456
2,394
6,376
9,577
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
42
5)
Actuarial assumptions
The following were the Company’s principal actuarial assumptions at the reporting date:
Discount rate
Future salary increase rate
December 31,
2023
1.40%
December 31,
2022
1.70%
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 $24,691.
The weighted-average lifetime of the defined benefit plan is 7.6 years.
6)
Sensitivity analysis
If the main actuarial assumptions had changed, the impact on the present value of the
defined benefit obligation shall be as follows:
December 31, 2023
Discount rate
Future salary increasing rate
December 31, 2022
Discount rate
Future salary increasing rate
Effects to the defined
benefit obligation
Increased
0.25%
Decreased
0.25%
(21,684)
21,987
(23,229)
23,643
22,385
(21,412)
23,998
(23,005)
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
43
(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 $433,882 and $421,223 for the years ended December 31, 2023 and 2022, 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, 2023 and 2022, was as
follows:
Current tax expense
Recognized during the period
$
1,365,434
1,627,923
2023
2022
Undistributed earnings additional tax
Tax credit of investment
Deferred tax expense
Recognition and reversal of temporary differences
Income tax expense
424,610
157,833
(412,301)
(638,549)
1,377,743
1,147,207
(335,670)
(335,670)
$
1,042,073
(401,887)
(401,887)
745,320
2)
The amount of income tax recognized in other comprehensive income for the years ended
December 31, 2023 and 2022, 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
2023
2022
$
$
(2,571)
26,866
121,727
119,156
(23,277)
3,589
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
44
3)
The income tax expense that was reconciled between the actual income tax expense and
profit before tax for the years ended December 31, 2023 and 2022, 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
2023
8,709,700
1,741,940
424,610
(134,725)
(132,659)
(412,301)
(865,073)
420,281
1,042,073
$
$
$
2022
8,033,612
1,606,722
157,833
(372,094)
(98,000)
(638,549)
362,434
(273,026)
745,320
(ii) Deferred tax assets and liabilities
Changes in the amount of deferred tax assets and liabilities for 2023 and 2022 were as follows:
Unrealized
exchange
losses, net
Refund
liabilities
Allowance for
obsolescence
loss and
inventory
valuation
Defined
benefit
plans
Others
Total
Deferred tax assets:
Balance on January 1, 2023
$
975,482
286,548
212,236
161,770
107,573
1,743,609
Recognized in profit or loss
758,888
150,248
(89,297)
(2,182)
4,815
822,472
Recognized in other
comprehensive income
-
-
Balance on December 31, 2023 $ 1,734,370
436,796
Balance on January 1, 2022
$
394,836
195,296
Recognized in profit or loss
580,646
91,252
-
122,939
164,573
47,663
2,571
-
162,159
112,388
191,608
171,907
(2,972)
(64,334)
2,571
2,568,652
1,118,220
652,255
Recognized in other
comprehensive income
-
-
-
(26,866)
-
(26,866)
Balance on December 31, 2022 $
975,482
286,548
212,236
161,770
107,573
1,743,609
Unrealized
exchange
gains, net
Others
Total
Deferred tax liabilities:
Balance on January 1, 2023
$ (755,031)
(422,387) (1,177,418)
Amount increased through business
combination
-
Recognized in profit or loss
(486,802)
-
-
-
(486,802)
Recognized in other comprehensive
income
-
(121,727)
(121,727)
Balance on December 31, 2023
$ (1,241,833)
(544,114) (1,785,947)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
45
Balance on January 1, 2022
Amount increased through business
Unrealized
exchange
gains, net
$ (504,663)
Others
(445,664)
Total
(950,327)
combination
-
Recognized in profit or loss
(250,368)
-
-
-
(250,368)
Recognized in other comprehensive
income
-
23,277
23,277
Balance on December 31, 2022
$ (755,031)
(422,387) (1,177,418)
(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, 2023
December
31, 2022
$
472,981
738,878
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, 2023 and 2022, the aggregate deductible temporary differences relating to
investments in subsidiaries not recognized as deferred tax assets amounted to $3,070,351 and
$2,618,241, respectively.
As of December 31, 2023 and 2022, the aggregate taxable temporary differences relating to
investments in subsidiaries not recognized as deferred tax liabilities amounted to $71,217,500
and $68,285,943, 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, 2023 and 2022, 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
46
(ii) Capital surplus
The balances of capital surplus were as follows:
Additional paid-in capital
Treasury share transactions
December
31, 2023
December
31, 2022
$
1,018,088
2,781,989
1,898,477
2,721,968
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
158,285
36,766
156,072
for using equity method
275,787
265,297
$
4,270,915
5,078,580
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, 2023 and March
15, 2022, approved to distribute cash of $881,429 and $1,762,859 (representing 0.2 and 0.4
New Taiwan dollars per share), by using capital surplus.
The Company’s Board of Directors’ meeting held on February 29, 2024, 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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
47
The lifecycle of the industry of the Company is in the growing stage. To consider the need of
the Company for the future capital, capital budget, long-term financial planning, domestic and
foreign competition, the need of shareholders for cash flow and other factors, if there is any
profit after close of books, the dividend and bonus to be distributed to shareholders shall not be
less than thirty percent of profit after tax for such year and the cash dividend allocated by the
Company each year shall not be lower than ten percent of the total dividend (including cash
and share dividend) for such year.
According to the law, when there is a deduction from stockholders’ equity (excluding treasury
stock and unearned employee benefit) during the year, an amount equal to the deduction item
is set aside as a special reserve before the earnings are appropriated. A special reserve is made
available for earning distribution only after the deduction of the related shareholders’ equity
has been reversed.
1)
Legal reverse
When a company incurs no loss, it may, in pursuant to a resolution to be adopted by the
shareholders’ meeting as required, distribute its legal reserve by issuing new shares and
distributing stock dividends or distributing cash to shareholders. Only the portion of the
legal reserve which exceeds 25% of the paid-in capital may be distributed.
2)
Special reverse
During earnings distribution, if the Company has already reclassified a portion of
earnings to special reserve, it shall make supplemental allocation of special reserve for
any difference between the amount of the current-period total net reduction of other
shareholders’ equity and the amount it has already allocated. An equivalent amount of
special reserve shall be allocated from the after-tax net profit in the period, plus items
other than after-tax net profit in the period, that are included in the undistributed current-
period earnings and the undistributed prior-period earnings. A portion of undistributed
prior-period earnings shall be reclassified to special earnings reserve to account for
cumulative changes to the net reduction of other shareholders’ equity pertaining to prior
periods. Amounts of subsequent reversals pertaining to the net reduction of other
shareholders’ equity shall qualify for additional distributions.
3)
Earnings distribution
Distribution for the earnings of 2022 and 2021 were approved in the meeting of the
Board of Directors held on March 15, 2023 and March 15, 2022, respectively. The
relevant information was as follows:
2022
2021
Amount
per share
Total
amount
Amount
per share
Total
amount
Cash dividends distributed to
common shareholders
$
1.0
4,407,147
1.6
7,051,435
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
48
Distribution for the earnings of 2023 was approved in the meeting of the Board of
Directors held on February 29, 2024. The relevant information was as follows:
2023
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,
2023, 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, 2023 and 2022. As of December 31, 2023, 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
39.85 and 23.05 New Taiwan dollars per share as of December 31, 2023 and 2022,
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, 2023
The Company
Subsidiaries
Associates
Balance on December 31, 2023
Balance on January 1, 2022
$
$
$
The Company
Subsidiaries
Associates
(1,469,711)
(376,004)
202,049
(103,664)
(1,747,330)
(8,744,705)
7,183,714
9,700
81,580
Balance on December 31, 2022
$
(1,469,711)
(461,103)
1,352,493
354,102
117,980
1,363,472
537,830
(590,539)
(420,019)
11,625
(461,103)
-
-
-
-
(12,290)
(1,943,104)
8,854
976,489
565,005
14,316
(3,436)
(387,294)
125
(12,415)
(8,206,750)
6,593,175
(422,734)
93,205
(12,290)
(1,943,104)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
49
(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
$
7,667,627
7,288,292
2023
2022
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)
$
7,667,627
7,288,292
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
26,813
43,369
Weighted-average number of ordinary shares (after adjustment of
potential diluted ordinary shares) (in thousands)
4,383,943
4,400,499
(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
2023
IT Product
Segment
347,866,867
$
2022
IT Product
Segment
422,138,779
134,279,955
128,937,847
59,845,035
67,399,114
31,850,768
40,249,464
301,071,590
344,917,587
$
874,914,215
1,003,642,791
$
873,568,649
1,002,242,692
1,345,566
1,400,099
$
874,914,215
1,003,642,791
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
50
(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, 2023
December
31, 2022
January 1,
2022
$ 186,783,839
(3,691,908)
186,706,859
(3,642,881)
279,700,604
(3,632,789)
(24,107)
$ 183,067,824
697,526
$
(27,599)
183,036,379
700,046
(3,097)
276,064,718
1,032,191
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, 2023 and 2022 that was
included in the balances of contract liability at the beginning of the period were $700,046 and
$1,032,191, 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 thereof and to directors as compensations in an amount of not more than two percent 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 $814,143 and $750,945,
respectively, and directors’ compensation of $43,051 and $39,709 for the years ended December 31,
2023 and 2022, 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 2023 and 2022.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
51
There is no differences between the amount estimated and recognized in the financial statements in
2022. 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, 2023 and 2022, were as follows:
Interest income from bank deposits
Other interest income
(ii) Other income
2023
789,016
212,504
1,001,520
$
$
2022
283,350
83,963
367,313
The other income for the years ended December 31, 2023 and 2022, were as follows:
Dividend revenue
Government grants
Rental revenue
Other revenue
(iii) Other gains and losses
2023
2022
$
$
90,278
84,444
26,602
103,067
304,391
60,493
107,861
16,993
148,964
334,311
The other gains and losses for the years ended December 31, 2023 and 2022, were as follows:
Gains (losses) on financial assets and liabilities at fair
value through profit or loss, net
Foreign currency exchange (losses) gains, net
Others
2023
2022
$
$
47,871
(799)
(338)
46,734
(17,430)
818,212
(10,013)
790,769
(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
52
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, 2023
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities–current and
non-current
December 31, 2022
Non-derivative financial
liabilities
Unsecured borrowings
Notes and accounts payable
Other payables
Lease liabilities–current and
non-current
$
70,185,100
163,311,482
12,332,111
(70,185,100)
(163,311,482)
(12,332,111)
(57,660,100)
(163,311,482)
(12,332,111)
(3,500,000)
(9,025,000)
-
-
-
-
1,041,366
$ 246,870,059
(1,066,268)
(246,894,961)
(364,918)
(233,668,611)
(316,947)
(3,816,947)
(384,403)
(9,409,403)
$
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)
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
53
(iii) Currency risk
1)
Exposure to foreign currency risk
The Company’s significant exposure to foreign currency risk was as follows:
December 31, 2023
Exchange
rate
Foreign
currency
TWD
December 31, 2022
Exchange
rate
Foreign
currency
TWD
$ 6,898,443
30.705
211,816,692
7,083,219
30.71
217,525,655
3,237,791
0.8976
2,906,241
652,264
0.8882
579,341
6,832,196
30.705
209,782,578
6,429,305
30.71
197,443,957
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,
2023 and 2022, 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, 2023
December
31, 2022
$
101,706
1,004,085
(101,706)
(1,004,085)
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, 2023
and 2022, the foreign exchange (loss) gains, including both realized and unrealized,
amounted to loss $799 and gain $818,212, 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
54
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, 2023 and 2022, 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
2023
2022
$
14,727
28,128
(14,727)
(28,128)
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, 2023
Fair Value
Book value
Level 1
Level 2
Level 3
Total
Financial assets at fair value through
profit or loss–non-current
Non-derivative financial assets
mandatorily measured at fair value
through profit or loss
Financial assets at fair value through
other comprehensive income
Stocks listed on domestic markets
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
$
337,855
-
2,752,235
2,752,235
2,906,241
2,906,241
276,342
262,892
28,158,504
34,356,214
-
-
-
-
-
-
-
-
337,855
337,855
-
-
276,342
262,892
2,752,235
2,906,241
276,342
262,892
28,158,504
-
28,158,504
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
55
December 31, 2023
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
20,511,690
143,433,458
11,475,862
3,951,773
337,145
179,709,928
$ 214,403,997
$ 46,917,800
80,947,046
82,364,436
12,332,111
1,041,366
10,742,300
12,525,000
999
$ 246,871,058
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Financial assets at fair value through
profit or loss–non-current
Non-derivative financial assets
mandatorily measured at fair value
through profit or loss
Financial assets at fair value through
other comprehensive income
Stocks listed on domestic markets
Stocks listed on foreign markets
Stocks unlisted on domestic markets
Stocks unlisted on foreign markets
Accounts receivable
Subtotal
December 31, 2022
Fair Value
Book value
Level 1
Level 2
Level 3
Total
$
249,567
-
1,688,060
1,688,060
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2)
Fair value valuation technique of financial instruments not measured at fair value
The Company estimates financial instruments that not measured at fair value by methods
and assumption as follows:
a)
Financial assets measured at amortized cost and financial liabilities measured at
amortized cost
If there is quoted price generated by transactions, the recent transaction price and
quoted price data is used as the basis for fair value measurement. However, if no
quoted prices are available, the discounted cash flows are used to estimate fair
values.
3)
Fair value valuation technique of financial instruments measured at fair value
a)
Non-derivative financial instruments
Financial instruments trade in active markets is based on quoted market prices. The
quoted price of a financial instrument obtained from main exchanges and on-the-
run bonds from Taipei Exchange can be used as a base to determine the fair value
of the listed companies’ equity instrument and debt instrument of the quoted price
in an active market.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
57
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.
The Company held an investment in equity of Airoha Technology Corp., which is
classified as fair value through other comprehensive income, with the fair value of
$124,054 and $114,137 at December 31, 2023 and 2022, respectively. The fair value of
the investment was previously categorized as Level 3 at December 31, 2022. This was
because the shares were not listed on the exchange market and was measured by
significant unobservable inputs. In October 2023, Airoha Technology Corp. listed its
equity shares on an exchange and they are currently actively traded in the market.
Because the equity shares now have a published price quotation in an active market, the
fair value measurement was transferred from Level 3 to Level 1 as of December 31,
2023.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
58
The Company held an investment in equity of Taiwan Star with a fair value of $418,658,
which was classified as a financial asset at fair value through other comprehensive
income as of December 31, 2022. The investment was categorized as Level 3 as of
December 31, 2022, because the shares were not listed on the exchange market and were
measured by significant unobservable inputs. On December 1, 2023, Taiwan Star was
absorbed and merged by Taiwan Mobile, and Taiwan Star’s shares were exchanged for
Taiwan Mobile’ s shares, wherein they were actively traded, thus their fair value
measurement was transferred from Level 3 to Level 1 as of December 31, 2023.
5) Changes in Level 3
The change in Level 3 at fair value in the years ended December 31, 2023 and 2022,
were as follow:
Balance on January 1, 2023
Total gains and losses recognized:
In profit or loss
In other comprehensive income
Purchased
Disposal
Proceeds of capital reduction of investment
Transferred out form Level 3
Balance on December 31, 2023
Balance on January 1, 2022
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
$
$
$
$
Financial assets at
fair value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Total
249,567
866,439
1,116,006
-
-
-
-
-
-
-
47,871
40,417
337,855
222,303
(17,430)
44,694
249,567
-
-
(143,488)
308,850
(47,921)
(3,420)
(441,226)
539,234
795,967
(166,248)
248,758
(10,028)
(2,010)
866,439
47,871
(143,488)
349,267
(47,921)
(3,420)
(441,226)
877,089
1,018,270
(17,430)
(166,248)
293,452
(10,028)
(2,010)
1,116,006
For the years ended December 31, 2023 and 2022, 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”)
$
$
2023
2022
47,871
(17,430)
(90,840)
(169,524)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
59
6)
The quantified information for significant unobservable inputs (Level 3) used in fair
value measurement
The Company’ s financial instruments that use Level 3 input to measure fair values
include financial assets at fair value through other comprehensive income and financial
assets at fair value through profit or loss.
Most of fair value measurements of the Company which are categorized as equity
investment into Level 3 have several significant unobservable inputs. Significant
unobservable inputs of equity investments without quoted price are independent of each
other.
The quantified information for significant unobservable inputs was as follows:
Item
Financial assets at fair
value through other
comprehensive
income － equity
investment without an
active market
Valuation
technique
Comparable
market approach
(Price-Book ratio
method and
Earnings
multiplier
method)
Significant
unobservable inputs
Price-Book ratio
multiples (0.75~2.09
and 2.04~2.89,
respectively, on
December 31, 2023 and
2022)
Multiples of earnings
(17.25 on December 31,
2022)
Lack-of-Marketability
discount rate (
40%~65% on December
31, 2023 and 2022)
Net asset value
method
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
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
Inapplicable
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
60
7)
Sensitivity analysis for fair value of financial instruments using Level 3 inputs
The Company’s fair value measurement on financial instruments is reasonable. However,
the measurement would be different if different valuation models or valuation parameters
are used. For financial instruments using Level 3 inputs, if the valuation parameters
changed, the impact on other comprehensive income or loss are as follows:
December 31, 2023
Financial assets at
fair value through
other comprehensive
income
December 31, 2022
Financial assets at
fair value through
other comprehensive
income
Input
Price-Book ratio
multiples
Lack-of-Marketability
discount rate
Price-Book ratio
multiples
Multiples of earnings
Lack-of-Marketability
discount rate
Move up
or down
Other comprehensive income
Unfavorable
change
Favorable
change
5%
5%
5%
5%
5%
$
$
$
$
$
8,434
8,311
2,962
3,085
6,617
6,433
2,787
3,428
2,771
3,628
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
61
(ii) Structure of risk management
The Company’ s finance management department provides business services for the overall
internal department. It sets the objectives, policies and processes for managing the risk and the
methods used to measure the risk arising from both the domestic and international financial
market operations.
The Company minimizes the risk exposure through derivative financial instruments. The Board
of Directors regulated the use of derivative financial instruments in accordance with the
Company’s policy about risks arising from financial instruments such as currency risk, interest
rate risk, credit risk, the use of derivative and non-derivative financial instruments and the
investments of excess liquidity. The internal auditors of the Company continue with the review
of the amount of the risk exposure in accordance with the Company’ s policies and the risk
management policies and procedures. The Company has no transactions in financial
instruments (including derivative financial instruments) for the purpose of speculation.
(iii) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations, and arises principally from the
Company’s receivables from customers and investment securities.
1) Accounts receivable and other receivables
The Company has established a credit policy under which each new customer is analyzed
individually for creditworthiness before the Company’ s standard payment and delivery
terms and conditions are offered. The Company’s review includes external ratings, when
available, and in some cases bank references. Purchase limits are established for each
customer, and these limits are reviewed periodically.
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,
2023 and 2022, the guarantees provide to the subsidiaries amounted to $400,816 and
$149,014, respectively.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
62
(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, 2023 and 2022.
(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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
63
The Company monitors the capital structure by way of periodical review the debt ratio. As of
December 31, 2023 and 2022, the debt ratio was as follows:
Total liabilities
Total assets
Debt ratio
December 31,
2023
$ 258,671,767
December
31, 2022
263,238,657
$ 378,293,762
379,533,411
68%
69%
The Company could purchase its own shares in the public market in accordance with the
corresponding rules and regulations. The timing of the purchases depends on market prices.
As of December 31, 2023, 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, 2023 and 2022 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,
2023
53,068,579
30,525,000
1,040,980
4,598
Cash flow
(6,150,779)
(7,257,700)
(438,966)
(3,599)
Other non-
cash
changes
-
-
439,352
-
December
31, 2023
46,917,800
23,267,300
1,041,366
999
$
84,639,157
(13,851,044)
439,352
71,227,465
$
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
64
(7) Related-party transactions:
(a) Name and relationship with related parties
The following are the Company’ s subsidiaries and 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”)
HengHao Technology Co., Ltd. (“HengHao”)
Ripal Optortronics Co., Ltd. (“Ripal”)
Auscom Engineering Inc. (“Auscom”)
Just International Ltd. (“Just”)
Compal International Holding Co., Ltd. (“CIH”)
Compal Electronics (Holding) Ltd. (“CEH”)
Bizcom Electronics, Inc. (“Bizcom”)
Flight Global Holding Inc. (“FGH”)
High Shine Industrial Corp. (“HSI”)
Compal Europe (Poland) Sp. z o.o. (“CEP”)
Big Chance International Co., Ltd. (“BCI”)
Compal Rayonnant Holdings Limited (“CRH”)
Core Profit Holdings Limited (“CORE”)
Compalead Electronics B.V. (“CPE”)
Relationship with the
Company
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
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”) (Note)
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
65
Name of related party
Mexcom Electronics, LLC (“MEL”)
Mexcom Technologies, LLC (“MTL”)
Compal Mexico Electromex S.A de C.V. (“CMX”)
Compal Americas (US) Inc. (“CUS”)
Compal Electronics N.A. Inc. (“CNA”)
Compal International Holding (HK) Limited (“CIH (HK)”)
Jenpal International Ltd. (“Jenpal”)
Prospect Fortune Group Ltd. (“PFG”)
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 Electronics Technology (Kunshan) Co., Ltd. (“CET”)
The Company’s subsidiary
Compal Information (Kunshan) Co., Ltd. (“CIC”)
The Company’s subsidiary
Compal Information Technology (Kunshan) Co., Ltd. (“CIT”)
The Company’s subsidiary
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”)
Compal Display Electronics (Kunshan) Co., Ltd. (“CDE”)
Etrade Management Co., Ltd. (“Etrade”)
Webtek Technology Co., Ltd. (“Webtek”)
Forever Young Technology Inc. (“Forever”)
Unicom Global, Inc. (“UCGI”)
Palcom International Corporation (“Palcom”)
Compal Communication (Nanjing) Co., ltd. (“CCI Nanjing”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Compal Digital Communication (Nanjing) Co., Ltd. (“CDCN”)
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”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Arcadyan Germany Technology GmbH (“Arcadyan Germany”)
The Company’s subsidiary
Arcadyan Technology Corporation Korea (“Arcadyan Korea”)
The Company’s subsidiary
Arcadyan India Private Limited (“Arcadyan India”)
Arcadyan Holding (BVI) Corp. (“Arcadyan Holding”)
Arcadyan do Brasil Ltda. (“Arcadyan Brasil”)
Arcadyan Technology Limited (“Arcadyan UK”)
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
Arcadyan Technology Australia Pty Ltd. (“Arcadyan AU”)
Name of related party
Relationship with the
Company
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”)
Goal Reach Enterprises Ltd. (“Goal”)
Compal (Vietnam) Co., Ltd. (“CVC”)
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
Compal 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”)
The Company’s subsidiary
The Company’s subsidiary
HengHao Optoelectronics Technology (Kunshan) Co., Ltd. (“HengHao
The Company’s subsidiary
Kunshan”)
LUCOM Display Technology (Kunshan) Limited (“Lucom”)
The Company’s subsidiary
HengHao Optoelectronics Technology (Zhejiang) Co., Ltd. (“HengHao
The Company’s subsidiary
Zhejiang”)
Center Mind International Co., Ltd. (“CMI”)
Prisco International Co., Ltd. (“PRI”)
Compal Electronic (Sichuan) Co., Ltd. (“CIS”)
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
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”)
FIPOLL Electronics (Chongqing) Co., Ltd. (“FIP”)
Billion Sea Holdings Limited (“BSH”)
Mithera Capital Io LP (“Mithera”)
Compal USA (Indiana), Inc. (“CIN”)
Compal Electronics (Vietnam) Co., Ltd. (“CEV”)
Fortune Way Technology Corp. (“FWT”)
General Life Biotechnology Co., Ltd. (“GLB”)
PT GLB BIOTECHNOLOGY INDONESIA
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
Starmems Semiconductor Corp. (“Starmems Semiconductor”)
Relationship with the
Company
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
The Company’s subsidiary
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
Compal Ruifang Health Assets Development Corporation (“Compal
The Company’s subsidiary
Ruifang”)
Compal Healthcare & Technology Ltd. (“Compal Healthcare”)
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
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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
68
Compal Precision Module (Jiangsu) Co., Ltd. (“CPM”)
Name of related party
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”)
Relationship with the
Company
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
An associate
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”)
with the Company
The same Chairman of the Board
with the Company
Note: Since the liquidation of AEI was completed in February 2023, AEI was no longer being the Company’s subsidiary.
(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.
2023
533,774
5,711
539,485
$
$
2022
478,681
5,925
484,606
(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
2023
1,924,106
$
168
15,710
2022
6,778,358
171
-
$
1,939,984
6,778,529
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
2023
2022
$
64,959,343
129,409,933
211,169,833
249,433,436
276,129,176
378,843,369
1,431
633
45,844,067
31,370,385
$ 321,974,674
410,214,387
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,
2023 and 2022, amounted to $361,120 and $316,155, respectively. As of December 31, 2023
and 2022, 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, 2023 and 2022, amounted to
$197,057 and $203,283, respectively. As of December 31, 2023 and 2022, 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, 2023 and 2022, were as follows:
Account
Related party
categories
December
31, 2023
December
31, 2022
Notes and accounts receivable
Subsidiaries
$
5,092,643
Notes and accounts receivable
Other related parties
6,407,326
Other receivables
Other receivables
Other receivables
Other receivables
Subsidiaries - UCGI
Subsidiaries - Others
Associates
Other related parties
74,672
205,371
1,514
64
8,934,638
4,370,909
195,183
24,710
1,321
-
Less: Credit balance of investments
accounted for using the equity
method
11,781,590
13,526,761
(24,107)
(27,599)
$
11,757,483
13,499,162
As of December 31, 2023 and 2022, 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, 2023 and 2022, were as follows:
Account
Notes and accounts payable
Related party
categories
Subsidiaries - CIT
December
31, 2023
36,056,165
$
December
31, 2022
32,506,355
Notes and accounts payable
Subsidiaries - Others
36,734,285
35,192,564
Notes and accounts payable
Associates
628
493
Notes and accounts payable
Other related parties
9,573,358
8,482,267
Other payables
Other payables
Subsidiaries
Other related parties
233,282
21,788
206,212
20,327
$
82,619,506
76,408,218
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
71
(vii) Property transactions–Acquisitions of financial assets
The acquisitions of financial assets from related parties are summarized as follows:
Relationship
Other related party –
Item
Number
of shares
Acquisition of financial
6,685
2023
Object
Common stocks of
Acquisition
price
259,378
Acbel
assets at fair value through
thousand
Acbel issued
other comprehensive
shares
through cash capital
income
increase
Other related party–
〃
1,249,470
Common stocks of
1,718,266
Cal- Comp
thousand
Cal-Comp issued
shares
through cash capital
increase
(viii) Property transactions–Disposal of property, plant and equipment
In 2023, the Company sold machinery to the Company’ s subsidiary, CVC. The disposal
proceeds in this transaction were $245,656, and the outstanding amount was $187,645, which
was recorded as other receivables. Because it was an inter-group transaction, the disposal gain,
$201,514, was unrealized and it was recorded as a deduction from investments accounted for
using the equity method.
(ix) Loans to related parties
The interest rate of unsecured loans to subsidiaries was 2.19%~6.19%, and the Company had
assessed that no bad debt expenses should be recognized. As of December 31, 2023 and 2022,
the loans due to related parties were recorded as other receivables.
Account
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Less: Credit balance of investments
in equity method
Related party
categories
Subsidiaries - CEB
Subsidiaries - CEA
December
31, 2023
December
31, 2022
$
921,150
767,750
1,995,825
1,381,950
Subsidiaries - HengHao
Subsidiaries - UCGI
Subsidiaries - CEP
Subsidiaries - Kinpo &
Compal Assets
Development
200,000
230,000
61,410
200,000
230,000
-
-
600,000
(200,000)
(200,000)
$
3,208,385
2,979,700
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
72
As of December 31, 2023 and 2022, 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).
(x) Guarantees
As of December 31, 2023 and 2022, the guarantees provided to subsidiaries were $400,816
and $149,014, 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.
(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
1,087,584
79,553
29,177
-
133,880
145,727
9,067
2023
Operating
expenses
11,160,350
757,930
417,847
53,010
438,592
680,925
507,924
Total
Operating
costs
12,247,934
837,483
447,024
53,010
572,472
826,652
516,991
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
11,679,912
792,596
430,800
49,668
601,656
832,340
460,141
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
73
For the years ended December 31, 2023 and 2022, 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
$
$
$
8,720
11
1,620
1,406
%8.99
-
9,066
11
1,491
1,290
%6.26
-
2023
2022
Information about salary and compensation policies (including directors, managers and employees) of the
Company is as follows:
Directors’ remuneration is allocated according to the terms of the Articles of the Incorporation, and no
more than 2% of the Company’ s pre-tax profit in the fiscal year, excluding employees’ and directors’
compensations, shall be paid to directors as remuneration along with reasonable compensation based on
other factors to be taken into consideration, such as the Company’ s operational performance and the
individual directors’ contribution to the Company’s performance.
Remuneration of the independent directors’ of the Company is allocated according to the terms of the
Articles of the Incorporation, as well as the involvement level in the corporate operation, contribution
value, responsibility that is taken, risk that is borne by the independent directors and reference of
competitors from the same industry. The remuneration is proposed by the Remuneration Committee and
resolved by the Board of Directors.
The Company’s remuneration policy for managers has been established based on various factors including
the Company’s wage policy, the average wage offered by competitors for the same position, the duties and
responsibilities for the position in question, and the manager’ s actual contribution to the Company’ s
operational objectives.
The Company’ s procedure for determining remuneration takes into account the Company’ s overall
operational performance as well as includes employee’s personal performance and their contribution to the
Company’ s performance in order to determine a reasonable compensation. Relevant salaries and
compensations are reviewed by the Remuneration Committee and resolved by the Board of Directors. The
Company will frequently examine the latest developments in the global economy, international financial
environment, and change of the industry condition in order to predict its operational development, profit
status, operational risks and changes in pertinent regulations in the near future in order to review the
compensation system, thereby reach a balance between the Company’s sustainable operation and relevant
risk control.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Consolidated Financial Statements
74
(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, 2023:
(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, 2023 (excluding investment in subsidiaries, associates and
joint ventures): Please refer to Table 3
(iv)
Individual securities acquired or disposed of with accumulated amount exceeding the lower of
NT$300 million or 20% of the capital stock: Please refer to Table 4
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or
20% of the capital stock: Please refer to Table 5
(vi) Disposals of individual real estate with amount exceeding the lower of NT$300 million or 20%
of the capital stock: None.
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of
NT$100 million or 20% of the capital stock: Please refer to Table 6
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%
of the capital stock: Please refer to Table 7
(ix) Trading in derivative instruments: None.
(b)
Information on investees: Please refer to Table 8
(c)
Information on investment in mainland China: Please refer to Table 9
(d) Major shareholders:
Shareholder’s Name
Cathay MSCI Taiwan ESG Sustainability High Dividend
Yield ETF
Shareholding
Shares
Percentage
269,519,000
%6.74
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
75
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 2023.
COMPAL ELECTRONICS, INC.
Statement of cash and cash equivalents
December 31, 2023
(Expressed in thousands of New Taiwan Dollars;
in thousands of Foreign Currency)
Item
Cash on hand
Checking account and
demand deposits
TWD
Description
Foreign currency (USD$561,580 and others)
Time deposits
Foreign currency (USD$80,000, Maturity date: 2024.1.5~
2024.1.25, Rate: 5.65%~5.85%)
Foreign currency (CNY$3,700, Maturity date: 2024.1.8~2024.2.6,
Rate: 2.50%~2.75%)
Cash equivalents:
Bonds purchased
under resale
agreements
Total
Foreign currency (USD$20,000, Maturity date: 2024.1.5,
Rate: 5.65%~5.68%)
76
$
Amount
2,399
165,374
17,257,407
17,422,781
2,456,400
16,010
2,472,410
614,100
614,100
$
20,511,690
Note: The exchange rate is 30.705 New Taiwan dollars for 1 US Dollar; 4.327 New Taiwan Dollars for 1 CNY.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of notes and accounts receivable
December 31, 2023
(Expressed in thousands of New Taiwan Dollars)
77
Item
Description
Sales of non-related parties
Amount
101,627,280
$
D Company
E Company
A Company
B Company
Others (Note)
Less: allowance for uncollectible accounts
Notes and accounts receivable, net
〃
〃
〃
〃
24,205,094
21,891,893
9,960,534
17,599,069
175,283,870
(3,691,908)
$
171,591,962
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
10,291,518
1,414,789
39,337,185
$
51,043,492
Net Realizable
Value
10,584,200
1,414,789
39,337,185
51,336,174
(Continued)
COMPAL ELECTRONICS, INC.
Statement of changes in accumulated impairment of investments accounted for using the equity method
For the year ended December 31, 2023
(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
10,000
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
20,000
10,000
21,756
15,035
9,100
600
100,000
20,000
3,500
52,500
4,646
-
-
-
-
$
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
227,599
961,854
98,259,876
Number of
shares
-
-
-
-
-
-
-
-
20,000
2,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,400
230,276
24,540
350,000
Number of
shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Amount
-
392,905
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,839
1,141
582
200,000
20,000
3,770
274
5,213
118,000
1,392
5,788
77,997
14,000
69,083
108,684
-
-
3,500,000
-
4,544,668
-
-
-
4,544,668
Amount
-
3,675
149,337
88,897
38,845
2,354
74,526
1,426
270,701
316
16,050
13,433
73,748
3,196
15,882
13,231
11,661
1,926
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
779,204
277,626
-
-
1,056,830
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
30,000
2,000
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
20,000
10,000
21,756
15,035
9,100
2,000
330,276
44,540
3,500
402,500
4,646
-
-
-
4,718
6,725
286,164
2,551,767
-
126,784
111,601
51,046
538
3
11,194
40,477
11,411
(356,076)
(39,020)
453,726
(246,117)
221,560
-
(142,346)
162
15,649
19,254
25,773
(7,212)
3,540
572,422
11,885
417,529
(17,243)
(7,998)
34,757
125,916
105,576
(151,389)
17,232
(80,146)
(11,339)
20,848
21,862
(430)
15,018
(24,404)
163
(36,581)
(26,180)
344
(12,731)
(19,145)
(19,029)
4,088,258
-
-
-
4,088,258
163,116
6,084,184
10,747,429
45,233,712
3,906,656
2,066,373
1,192,630
387,112
300,478
20,003
337,393
405,115
478,925
69,571
2,466
2,851,065
4,711,916
534,623
(3)
469,407
5,044
213,334
296,869
(692,307)
24,850
(13,491)
8,830,418
1,497,584
7,851,779
67,239
114,460
910,711
784,432
(156,242)
699,410
1,630,098
82,467
98,152
272,981
380,211
15,569
93,015
10,571
17,859
65,171
104,286
84,419
12,259
3,986,402
167,893
107,417,614
(1,879,691)
(881,247)
(10,157)
104,646,519
(8,930)
(760,821)
(161,653)
(159,936)
(288,018)
(15,491)
290
(62)
512
(113)
(15,392)
(26,456)
(1,845)
3,880
(550,226)
(85,343)
3
(78)
2,564
9,792
(75,656)
(10,616)
297,829
24,030
228,061
(12,541)
(4,950)
(103,565)
(88,416)
(84,291)
(877)
663
(373)
-
-
-
-
-
-
-
-
-
-
-
-
-
8,334
-
-
-
(1,879,691)
154,186
5,323,363
10,585,776
45,073,776
3,618,638
2,050,882
1,192,920
387,050
300,478
20,003
337,905
405,002
463,533
43,115
621
2,854,945
4,161,690
449,280
469,329
5,044
215,898
306,661
(767,963)
24,850
(24,107)
9,128,247
1,521,614
8,079,840
67,239
114,460
898,170
779,482
(259,807)
610,994
1,545,807
82,467
98,152
272,981
379,334
16,232
92,642
10,571
17,859
65,171
104,286
92,753
12,259
3,986,402
167,893
105,537,923
(881,247)
(211,671)
104,445,005
224,107
827,770
105,496,882
-
-
Investee Company
Auscom
Panpal
Just
CIH
CEH
Gempal
Hong Ji
Hong Jin
Compal Ruifang
Compal Healthcare
Poindus Systems
Allied Circuit
Bizcom
Lipo Holding Co., Ltd. (“LIPO”)
Crownpo
Arcadyan
FGH
HSI
Lead-Honor Optronics Co., Ltd.(“Lead-Honor”)
CBN
Kinpo Group Management
Rayonnant Technology
CRH
HengHao
Infinno Technology Corp. (“Infinno”)
CEP
BCI
APE
CORE
Unicore
Ripal
CPE
Avalue
Etrade
Webtek
Forever
UCGI
Palcom
Mactech
GLB
Shennona
CMX
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
Plus: Credit balance of investment in equity method
Total
78
Market Price /
Net Value
154,186
5,940,563
10,585,776
45,060,928
3,618,638
2,412,195
1,192,920
387,050
300,478
20,003
300,845
1,574,448 (Note 4)
463,533
43,115
621
7,042,418 (Note 3)
4,161,690
449,280
-
796,249 (Note 3)
6,204
215,898
306,661
(767,963)
24,850
(24,107)
9,128,247
1,521,614
8,079,840
67,239
114,460
898,170
1,783,426 (Note 4)
(259,807)
610,994
1,545,807
82,467
98,152
272,981
268,946
16,232
92,642
(1,903)
17,859
37,358
95,414
92,753
12,259
3,986,402
52,314
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, unrealized gain on disposal of fixed assets, 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, 2023.
Note 4：The unit price is calculated by the closing price of Taipei Exchange as of December 31, 2023.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of financial assets measured at fair value through other
comprehensive income - non-current
For the year ended December 31, 2023
(Expressed in thousands of New Taiwan Dollars)
Beginning Balance
Increase (Note 1)
Decrease (Note 2)
Ending Balance
Investee Company
Number of
Shares
Amount
124,044 $ 1,674,591
Number of
Shares
-
Amount
341,120
Number of
Shares
-
Amount
-
Number of
Shares
124,044
Amount
2,015,711
281,233
579,341
1,272,906
2,326,900
-
-
1,554,139
2,906,241
98,046
418,658
-
-
98,046
418,658
-
-
-
-
-
3,197
317,172
461,250
-
$ 3,133,840
649,068
3,634,260
-
-
1,918
3,197
315,254
149,814
570,390
-
960,504
6,197,710
Kinpo
Cal-Comp
Taiwan Star
Taiwan Mobile
Others
Total
79
Collaterals
or Pledged
Assets
None
None
None
None
None
Note 1: Increase included transfer of the invested company's surplus to capital, acquiring financial assets at fair value through other comprehensive income through stock exchange due
to merger and absorption, purchasing financial assets at fair value through other comprehensive income, unrealized gains on financial instruments at fair value, and deferred tax
for unrealized gains.
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,
eliminating financial assets at fair value through other comprehensive income through stock exchange due to merger and absorption, 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, 2023
(Expressed in thousands of New Taiwan Dollars)
80
Please refer to Note (6)(j).
Statement of short-term borrowings
December 31, 2023
Creditor
China Construction Bank
Description
Credit Loans
Corporation
DBS Bank Limited
Bank of Communications
Co., Ltd.
E.SUN Commercial Bank
United Overseas Bank
Taipei Fubon Commercial
Bank Co., Ltd.
Cathay United Bank
Bank Sinopac Company
Limited
Mega International
Commercial Bank Co.,
Ltd.
Oversea-Chinese Banking
Corporation Limited
HSBC Bank (Taiwan)
Limited
The Hongkong and
Shanghai Banking
Corporation Limited
Banco Bilbao Vizcaya
Argentaria Bank
〃
〃
〃
〃
〃
〃
″
〃
〃
〃
〃
〃
Contract
Period
2023.11~2024.03
2023.12~2024.01
2023.11~2024.03
2023.10~2024.01
2023.11~2024.01
2023.10~2024.01
2023.12~2024.01
2023.12~2024.02
2023.11~2024.02
2023.11~2024.02
2023.12~2024.03
2023.12~2024.03
2023.12~2024.01
Interest Rate
Note
Loan
Commitments
6,141,000
$
Collaterals or
Pledged Assets
None
Ending
balance
5,977,550
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
6,141,000
6,141,000
4,000,000
4,605,750
4,145,175
5,526,900
2,000,000
None
None
None
None
None
None
None
4,605,750
3,000,000
3,684,600
3,070,500
4,074,675
5,526,900
1,200,000
2,000,000
None
1,688,775
3,070,500
None
1,500,000
1,842,300
None
1,842,300
4,759,275
None
4,298,700
6,448,050
None
6,448,050
$
56,820,950
46,917,800
Note: The range of interest rates of aforementioned loans were 1.62%~6.15%.
(Continued)
COMPAL ELECTRONICS, INC.
Statement of notes and accounts payable
December 31, 2023
(Expressed in thousands of New Taiwan Dollars)
81
Amount
$
22,370,967
8,721,574
8,469,099
8,177,892
4,688,693
4,387,295
24,131,526
$
80,947,046
Suppliers
E Company
C Company
J Company
A Company
B Company
D 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, 2023
(Expressed in thousands of New Taiwan Dollars)
82
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
2023.12~2026.12
Interest
Rate
Note
Amount
Yuan Ta Commercial Bank
3,000,000
3,000,000
Taipei Fubon Commercial
Bank Co., Ltd.
3,000,000
2,842,300
E.SUN Commercial Bank
2,000,000
1,900,000
Shanghai Commercial and
2,300,000
Savings Bank
Far Eastern International
1,000,000
Bank Co., Ltd.
CTBC Bank Co., Ltd.
Taiwan Corporative Bank
Chang Hwa Bank
3,500,000
1,000,000
3,000,000
-
-
-
-
-
-
-
-
2023.12~2024.03
2023.11~2024.02
2021.11~2024.11
2,300,000
2023.06~2027.06
1,000,000
2022.11~2025.09
900,000
2023.11~2026.11
1,000,000
2022.05~2025.05
3,000,000
2022.05~2026.05
Bank of America
5,066,325
2,000,000
-
2023.09~2024.09
Bank SinoPac Co., Ltd.
3,300,000
-
825,000
2022.12~2026.12
$
32,166,325
10,742,300
12,525,000
Note: The range of interest rates of aforementioned loans were 1.64%~6.10%.
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Amount
4,500,000
3,000,000
2,842,300
1,900,000
2,300,000
Collaterals or
Pledged Assets
None
None
None
None
None
1,000,000
None
900,000
1,000,000
3,000,000
2,000,000
825,000
23,267,300
None
None
None
None
None
(Continued)
COMPAL ELECTRONICS, INC.
Statement of lease liabilities
December 31, 2023
Item
Buildings
Vehicles
Description
For office and factory space
For operating activities
Lease term
1~10 years
3~5 years
Discount
rate
1.60%
1.60%
Less：Current portion
Lease liabilities–Non-
Current
83
Ending balance
1,040,368
$
998
1,041,366
(352,900)
$
688,466
Statement of other payables
Item
Payroll payables and year-end
Description
Payroll for December 2023, estimated year-end bonuses
Amount
$
4,752,076
bonuses payable
for 2023, 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.
882,650
1,070,188
5,627,197
$
12,332,111
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating revenue
For the year ended December 31, 2023
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.
84
Amount
$
875,425,008
680,475
(779,184)
(1,757,650)
873,568,649
1,345,566
$
874,914,215
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating costs
For the year ended December 31, 2023
(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
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
Transferred to operating expense (entertainment expense, sample expense, and others)
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
85
Amount
$
40,296,164
530,395,314
(41,514,319)
(18,215)
26,156,601
(1,680,095)
553,635,450
553,586
1,219,070
555,408,106
1,276,477
3
(1,414,789)
(15,352)
555,254,445
15,479,353
308,536,527
1,707,327
(10,326,252)
(980,466)
869,670,934
3,430,338
(26,156,601)
(1,775,969)
1,695,447
$ 846,864,149
(Continued)
COMPAL ELECTRONICS, INC.
Statement of operating expenses
For the year ended December 31, 2023
(Expressed in thousands of New Taiwan Dollars)
86
Item
Payroll expenses
Export expenses
Royalty expenses
Research expenses
Shipping expenses
Sample expenses
Others (Note)
Total
Selling
expenses
Administrative
expenses
Research and
development
expenses
$
365,677
271,649
290,665
-
3,025,462
474,904
240,103
$
4,668,460
1,804,081
8,990,592
-
-
-
7,859
9
1,154,751
2,966,700
-
-
1,520,277
2,764
1,536
2,571,766
13,086,935
Note: The amount of each item in others does not exceed 5% of the account balance.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
87
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Table 1 Loans to other parties:
(December 31, 2023)
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
0 The
CEP
Company
1 CIH
CEP
2 CPC
CIC
Account
name
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
3 CIT
CCI Nanjing Other
3 CIT
Rayonnant
Technology
(Taicang)
receivables
Other
receivables
3 CIT
HengHao
Kunshan
Other
receivables
3 CIT
CEA
4 CPO
CIT
4 CPO
CEA
5 CET
BT
6 Panpal
Kinpo &
Compal
Group Assets
Development
Corporation
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
6 Panpal
HengHao
Other
receivables
7 CIC
HengHao
Kunshan
Other
receivables
7 CIC
CEB
8 BSH
CIN
9 Gempal
9 Gempal
Kinpo &
Compal
Group Assets
Development
Corporation
Ray-Kwong
Medical
Management
Consulting
Co., Ltd.
10 CGSP
CEP
11 Hong Ji
Kinpo &
Compal
Group Assets
Development
Corporation
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
Other
receivables
12 Hong Jin Hippo Screen Other
13 Arcadyan Acradyan
Brasil
13 Arcadyan Acradyan
Brasil
receivables
Other
receivables
Other
receivables
Highest
balance of
financing to
other parties
during the
period
460,000
Related
party
Y
Actual
usage
amount
during the
period
230,000
Ending
balance
230,000
400,000
200,000
200,000
1,751,250
921,150
921,150
Range of
interest rates
during the
period
Purposes of
fund
financing for
the borrower
2.19%~2.29% Short-term
financing
2.19%~2.29% Short-term
financing
5.00%~6.19% Short-term
financing
1,150,000
550,000
-
2.16%~2.29% Short-term
financing
3,508,925
1,995,825
1,995,825
5.00%~6.19% Short-term
financing
62,510
61,410
61,410
6.09%
64,850
-
-
6.61%
Short-term
financing
Short-term
financing
886,700
432,700
432,700
2.10%~2.20% Short-term
financing
2,269,750
2,149,350
1,780,890
6.61%
81,063
-
-
6.61%
Short-term
financing
Short-term
financing
1,887,150
921,150
921,150
5.75%~6.61% Short-term
financing
324,250
307,050
307,050
6.09%
Short-term
financing
1,330,050
649,050
649,050
2.10%~2.20% Short-term
financing
972,750
921,150
921,150
6.09%
Short-term
financing
532,680
259,620
173,080
1,600,000
1,000,000
1,000,000
2.00%~2.20% Short-term
financing
2.16%~2.29% Short-term
financing
1,200,000
600,000
600,000
2.19%~2.29% Short-term
financing
1,783,375
1,688,775
1,688,775
6.61%
324,250
307,050
307,050
6.09%
583,650
506,633
337,756
6.61%
600,000
-
-
2.29%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Y
15,000
5,000
5,000
2.19%~2.29% Short-term
financing
Y
Y
Y
Y
Y
64,850
61,410
-
6.61%
450,000
450,000
430,000
2.29%
35,000
35,000
20,000
2.19%
63,720
-
-
5.00%
64,870
61,410
42,987
5.50%
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Short-term
financing
Transaction
amount for
business
between two
parties
-
Reasons for
short-term
financing
Operating
demand
Allowance
for
bad debt
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
Operating
financing
Operating
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
23,924,399
Maximum
limit of fund
financing
47,848,798
Note
(Note 1)
23,924,399
47,848,798
(Note 1)
23,924,399
47,848,798
(Note 1)
4,555,887
47,848,798
(Note 1)
23,924,399
47,848,798
(Note 1)
23,924,399
47,848,798
(Note 1)
45,060,928
45,060,928
(Note 2)
2,832,493
2,832,493
(Note 3)
27,565,296
27,565,296
(Note 4)
27,565,296
27,565,296
(Note 4)
27,565,296
27,565,296
(Note 4)
27,565,296
27,565,296
(Note 4)
3,111,110
3,111,110
(Note 5)
3,111,110
3,111,110
(Note 5)
5,045,678
5,045,678
(Note 6)
2,376,225
2,376,225
(Note 7)
2,376,225
2,376,225
(Note 7)
10,930,282
10,930,282
(Note 8)
10,930,282
10,930,282
(Note 8)
8,255,369
8,255,369
(Note 9)
964,878
964,878
(Note 10)
13,749
964,878
(Note 10)
92,753
92,753
(Note 11)
477,167
477,167
(Note 12)
154,819
154,819
(Note 13)
2,960,444
5,920,889
(Note 14)
2,960,444
5,920,889
(Note 14)
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
88
Table 1 Loans to other parties:
(December 31, 2023)
Highest
balance of
financing to
other parties
during the
period
304,800
Actual
usage
amount
during the
period
-
Range of
interest rates
during the
period
1.00%
Ending
balance
-
Account
name
Other
receivables
Related
party
Y
Name of
lender
Name of
borrower
No.
13 Arcadyan Arcadyan
Vietnam
13 Arcadyan Arcadyan
Vietnam
Other
receivables
14 Arcadyan
CNC
Holding
15 Poindus
Systems
Adasys
Other
receivables
Long-term
receivables
15 Poindus
Systems
Poindus UK Long-term
receivables
Y
Y
Y
Y
324,350
307,050
1,946,100
1,842,300
-
-
5.50%
5.50%
43,843
22,087
22,087
2.00%~4.57% Transaction
for business
between two
parties
26,169
25,448
25,448
1.00%
Transaction
for business
between two
parties
Purposes of
fund
financing for
the borrower
Transaction
for business
between two
parties
Transaction
for business
between two
parties
Short-term
financing
Transaction
amount for
business
between two
parties
14,676,990
Reasons for
short-term
financing
-
Allowance
for
bad debt
-
19,589,790
-
Operating
financing
-
67,310
37,638
-
-
-
-
(In Thousands of New Taiwan Dollars)
Individual
funding loan
limits
2,960,444
Maximum
limit of fund
financing
5,920,889
Note
(Note 14)
2,960,444
5,920,889
(Note 14)
2,245,049
2,245,049
(Note 15)
51,844
207,377
(Note 16)
51,844
207,377
(Note 16)
Collateral
Item Value
-
-
-
-
-
-
-
-
-
-
Note 1:
Note 2:
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
Note 3:
Note 4:
Note 5:
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
Note 6:
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
Note 7:
Note 8:
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
Note 9:
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 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 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 Hong Jin’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 Jin. When a short-term financing facility with Hong Jin 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 Jin’s total amount of lendable capital, and shall be combined with the Hong
Jin’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 Jin, 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.
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, 2023)
89
(In Thousands of New Taiwan Dollars)
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
28,876,015
Highest balance
for guarantees
and
endorsements
during the period
57,285
Balance of
guarantees and
endorsements as
of reporting date
18,676
Actual usage
amount
during the
period
18,676
Property pledged
for guarantees and
endorsements
(Amount)
-
Ratio of accumulated
amounts of guarantees and
endorsements to net worth
of the latest financial
statements
Maximum
amount
for guarantees
and endorsements
(Note 1(cid:501)(cid:501)2 and 3)
0.02%
57,752,031
Parent company
endorsements/
guarantees to
third parties on
behalf of
subsidiary
Y
Subsidiary
endorsements/
guarantees to
third parties on
behalf of parent
company
-
Endorsements/
guarantees to
third parties on
behalf of
companies in
Mainland China
-
0
The Company CEB
(Note 5)
28,876,015
376,130
356,178
356,178
0
The Company HengHao
Kunshan
(Note 5)
28,876,015
26,670
25,962
25,962
1 Arcadyan
Arcadyan AU
(Note 5)
1,973,629
243,263
230,288
-
2
Poindus
Systems
Qijie
(Note 5)
103,688
30,710
-
-
-
-
-
-
0.31%
57,752,031
0.02%
57,752,031
1.56%
5,920,889
0.00%
259,221
Y
Y
Y
Y
-
-
-
-
-
Y
-
Y
Note 1(cid:28873)
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
Note 2(cid:28873)
Note 3(cid:28873)
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(cid:28873) Subsidiary whose over 50% common stock is directly owned.
Note 5(cid:28873) Subsidiary whose over 50% common stock is indirectly owned.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
90
Table 3 Securities held as of December 31, 2023 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2023)
Name of
holder
Category and name of security
The Company Taiwan Mobile
Relationship with security
issuer
(cid:4137)
Kinpo
Cal-Comp
The same chairman of the
Company
The same chairman of the
Company
(cid:4137)
(cid:4137)
(cid:4137)
The Chairman of the Board is
the first degree of kinship of
the Chairman of the
Company
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
HWA VI Venture Capital Corp.
HWA Chi Venture Capital Corp.
mProbe Ltd.
AcBel
Chen Feng Optoelectronics
PrimeSensor Technology Inc.
Ganzin Technology, Inc.
Airoha Technology Corp.
ITH Corporation
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)
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 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
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
3,197
Carrying
value
315,254
Holding
percentage
(%)
-
Fair value
Note
315,254
124,044
2,015,711
8%
2,015,711
1,554,139
2,906,241
15%
2,906,241
48
53
13,553
10%
13,553
13,515
11%
13,515
4,000
10,800
3%
10,800
6,685
274,754
1%
274,754
6,685
101,676
7%
101,676
868
13,361
1%
13,361
2,000
36,000
7%
36,000
215
124,055
-
124,055
8,000
225,989
2%
225,989
-
179,175
2%
179,175
5,000
91,000
8%
91,000
6,000
67,680
19%
67,680
146,801
146,801
_____________
6,535,565
31,648
1,261,176
1%
1,261,176
69,370
1,127,257
5%
1,127,257
54,000
822,420
5%
822,420
11,332
465,740
2%
465,740
2,291
71,387
6%
71,387
8,680
160,061
3%
160,061
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
91
Table 3 Securities held as of December 31, 2023 (excluding investment in subsidiaries, associates and joint ventures):
(December 31, 2023)
Name of
holder
Category and name of security
Panpal
Others
Relationship with security
issuer
(cid:4137)
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.
Adant Technologies Inc.
IOT EYE, Inc.
TIEF FUND L.P.
Chimei Motor Electronics Co., LTD
Golden Smarthome Technology Corp.
Total
Mactech
Taichung International Golf
Country Club
HHB
HWALLAR OPTRONICS
(Fuzhou) CO., LTD.
Mithera
Beyond Limits, Inc.
BT
CIT
Suzhou Genki Fuhong Health
Management Co., Ltd.
Kunqiao Phase II (Suzhou) Emerging
Industry Venture Capital Partnership
Fund
BSH
Achi Capital Partners Fund LP
ABG Capital PartnersV, LP
Total
(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)
(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 other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through other comprehensive
income-non-current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
Financial assets at fair value
through profit or loss-non-
current
(In Thousands of shares/ units)
Ending balance
Shares/Units
(thousands)
Carrying
value
9,384
Holding
percentage
(%)
Fair value
Note
9,384
_____________
3,917,425
18,369
732,019
-
732,019
2,291
71,365
6%
71,365
952
952
_____________
804,336
380
332
200
1,152
349
60
-
-
-
-
-
-
1%
1%
4%
5%
5%
14%
-
-
-
-
-
-
(Note 1)
(Note 1)
(Note 1)
(Note 1)
(Note 1)
(Note 1)
48,112
7%
48,112
1,650
35,442
6%
35,442
1,229
(cid:4137)
2%
(cid:4137)
_____________
83,554
11,790
(cid:4137)
11,790
-
19%
-
(Note 1)
873
138,172
-
138,172
4,328
17%
4,328
502,738
62,733
266,074
-
-
-
502,738
62,733
266,074
_____________
328,807
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
(cid:4137)
Note 1(cid:28873)The carrying value is the remaining amount after deducting accumulated impairment.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
92
Table 4 Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:
(For the year ended December 31, 2023)
Name of
company
The
Company
Security
Name
Category
Stock
Kinpo &
Compal Group
Assets
Development
Corporation
The
Company
Cal-Comp
Stock
BSH
CEV
Stock
Arcadyan
Arcadyan
Holding
Stock
Account
name
Investments
accounted for
using equity
method
Financial assets
at fair value
through other
comprehensive
income-non-
current
Investments
accounted for
using equity
method
Investments
accounted for
using equity
method
Name of
counter-party
(Note 1)
Relationship
with the
company
(Note 5)
Beginning Balance
Purchases
Sales
Others
Ending Balance
Shares/ Units
Amount
Shares/ Units
Amount
Shares/ Units
Price
Cost
Gain (loss) on
disposal
Shares/
Units
Amount
Shares/
Units
Amount
52,500
505,547
350,000
3,500,000
-
-
-
-
-
(19,145)
402,500
3,986,402
(In Thousands of New Taiwan Dollars/ shares)
(Note 1)
(Note 7)
281,233
579,341
1,249,470
1,718,266
-
-
-
-
23,436
608,634
1,554,139
2,906,241
(Note 2)
(Note 1)
(Note 6)
-
-
-
1,658,070
-
-
-
-
(Note 1)
(Note 6)
47,780
1,804,421
60,000
1,843,500
60,000
-
1,843,500 -
(Note 3)
(Note 4)
-
-
36,262
-
1,694,332
(Note 2)
262,540
47,780
2,066,961
(Note 2)
Note 1: Cash capital.
Note 2: Others refer to investment income using equity method and foreign currency translation differences of foreign operations.
Note 3: Stock dividends.
Note 4: Others refer to unrealized gain and loss on financial asstes and its deferred taxes.
Note 5: Subsidiary whose over 50% common stock is directly owned.
Note 6: Subsidiary whose over 50% common stock is indirectly owned.
Note 7: The same chairman of the Company.
Table 5 Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
(For the year ended December 31, 2023)
Name of
company
Arcadyan
Transaction
date
(Note 1)
September 28,
2023
Transaction
amount
738,000
Status of
payment
-
Counter-party
Chien Ming
Construction Co.
Ltd.
If the counter-party is a related party,
disclose the previous transfer information
Relationship
with the
Company
None
Owner
not applicable
Relationship
with the
Company
not applicable
Date of
transfer
not applicable
Amount
not applicable
(In Thousands of New Taiwan Dollars)
Purpose of
acquisition and
current
condition
operational use
Others
None
References for
determining
price
price
comparison and
negotiation
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
93
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, 2023)
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Company
Name
Counter
party
The Company
CBN
Arcadyan
Nature of
relationship
The Company's
subsidiaries
The Company's
subsidiaries
Purchase/
(Sale)
Sale
Amount
(170,327)
Sale
(1,418,650)
Percentage
of total
purchases/
(sales)
Payment terms
(0.0)% Net 90 days from
delivery
(0.2)% Net 60 days from the
end of the month of
delivery
Unit price
Similar to non-
related parties
Similar to non-
related parties
CEP
CEP
Subsidiaries wholly
owned by the Company
Sale
(114,975)
(0.0)%
120 days
Subsidiaries wholly
owned by the Company
Purchase
189,437
0.0%
120 days
CIH and its
subsidiaries
Subsidiaries wholly
owned by the Company
Purchase
105,753,627
11.2%
120 days
Just and its
subsidiaries
Subsidiaries wholly
owned by the Company
Purchase
71,030,857
7.5%
120 days
HSI and its
subsidiaries
Subsidiaries wholly
owned by the Company
Purchase
66,824,371
7.1%
120 days
BCI and its
subsidiaries
Subsidiaries wholly
owned by the Company
Purchase
29,504,779
3.1%
120 days
Etrade and its
subsidiaries
Subsidiaries wholly
owned by the Company
Purchase
2,973,830
0.3% Net 60 days from
delivery
Kinpo
The same chairman of the
Company
Purchase
45,822,993
4.9% Net 35 days from the
end of the month
Just and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(71,030,857)
(99.6)%
120 days
UCGI
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
Sale
(211,853)
(0.3)%
60 days
Purchase
1,148,812
2.1%
120 days
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Markup based on
BCI and its
subsidiaries' cost
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
Etrade and its
subsidiaries
With the same
ultimate parent
company
Purchase
148,167
(0.3)% Net 60 days from
delivery
According Etrade
and its subsidiaries
to markup pricing
CIH and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(105,753,627)
(92.8)%
120 days
BCI and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
CEB
CEA
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(505,696)
(0.3)%
120 days
Sale
(8,058,473)
(5.6)%
120 days
Sale
(245,966)
(0.2)%
120 days
Sale
(311,899)
(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
Percentage
of total
notes/accounts
receivable
(payable)
0.1%
0.4%
Ending
Balance
137,791
685,277
Note
97,737
0.1%
-
0.0%
(49,778,450)
(30.5)%
(2,070,603)
(1.3)%
(7,960,864)
(4.9)%
(9,497,819)
(5.8)%
(995,739)
(0.6)%
(9,565,439)
(5.9)%
2,070,603
99.1%
37,844
0.5%
-
-
(0.0)%
(0.0)%
49,778,450
91.4%
9,236
0.0%
7,590,654
7.6%
11,918
0.0%
68,223
0.1%
Payment Terms
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.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
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.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
94
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2023)
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)
Purchase
Transaction details
Percentage
of total
purchases/
(sales)
Amount
346,858
0.3%
Payment terms
120 days
Unit price
Similar to non-
related parties
Payment Terms
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
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.
There is no significant
difference.
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
(16,460)
(0.0)%
(263,964)
(0.2)%
(89,676)
(0.1)%
(541,864)
(0.7)%
(6,375)
(0.0)%
(276,555)
(0.4)%
9,497,819
93.0%
16,460
0.0%
1,276,398
3.3%
193,709
0.5%
Rayonnant
Technology and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
CPM
With the same
ultimate parent
company
An associate
Purchase
1,403,349
1.1%
120 days
Purchase
694,749
0.5%
120 days
Purchase
2,444,514
1.9%
120 days
Changbao
An associate
Purchase
203,638
0.2%
120 days
Acbel and its
subsidiaries
The Chairman of the
Board is the first degree of
kinship of the Chairman
of the Company
Purchase
721,560
0.5%
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
CIH and its
subsidiaries
HSI and its
subsidiaries
CEA
CEB
CIH and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Rayonnant
Technology and its
subsidiaries
With the same
ultimate parent
company
BCI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(29,504,779)
(92.2)%
120 days
Sale
(346,858)
(0.9)%
120 days
Sale
(424,337)
(4.1)%
120 days
Sale
(688,172)
(1.9)%
120 days
Markup based on
BCI and its
subsidiaries' cost
Adjustments will be
made based on demand
for funding.
According to markup
pricing
According to markup
pricing
Adjustments will be
made based on demand
for funding.
Adjustments will be
made based on demand
for funding.
According to markup
pricing
There is no significant
difference.
Sale
(315,316)
(0.8)%
120 days
According to markup
pricing
There is no significant
difference.
402,431
3.1%
Sale
Sale
505,696
1.6%
120 days
120,513
0.5%
120 days
According to markup
pricing
Adjustments will be
made based on demand
for funding.
Similar to non-
related parties
There is no significant
difference.
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference.
There is no significant
difference.
(9,236)
(0.0)%
(25,132)
(0.1)%
(12,690)
(0.0)%
(102,674)
(0.3)%
CPM
An associate
Purchase
172,286
0.5%
120 days
Acbel and its
subsidiaries
The Chairman of the
Board is the first degree of
kinship of the Chairman
of the Company
Purchase
230,457
0.7%
120 days
CEA
CEB
CEB
BCI and its
subsidiaries
CIH and its
subsidiaries
BCI and its
subsidiaries
CEA
CIH and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
With the same
ultimate parent
company
Sale
(1,562,819)
(21.3)%
45 days
Similar to non-
related parties
There is no significant
difference.
943,962
36.6%
Purchase
688,172
11.3%
120 days
According to markup
pricing
There is no significant
difference.
(193,709)
(25.8)%
Purchase
311,899
5.1%
120 days
Similar to non-
related parties
There is no significant
difference.
(68,223)
(9.1)%
Purchase
315,316
8.0%
120 days
According to markup
pricing
There is no significant
difference.
(402,431)
(28.8)%
Purchase
1,562,819
38.9%
45 days
Similar to non-
related parties
There is no significant
difference.
(943,962)
(67.6)%
Purchase
245,966
6.1%
120 days
Similar to non-
related parties
There is no significant
difference.
(11,918)
(0.9)%
CEP
Compal Electronic,
Inc.
Parent company
Sale
(189,437)
(91.3)%
120 days
Compal Electronic,
Inc.
Parent company
Purchase
114,975
100.0%
120 days
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
-
0.0%
(97,737)
89.2%
(Continued)
Sale
(212,507)
(100.0)% Net 60 days from
delivery
Similar to non-
related parties
There is no significant
difference.
128,048
100.0%
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
95
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2023)
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
(2,973,830)
Percentage
of total
purchases/
(sales)
Payment terms
(88.9)% Net 60 days from
delivery
Unit price
According to markup
pricing
Percentage
of total
notes/accounts
receivable
(payable)
Note
Ending
Balance
995,739
92.7%
-
-
0.0%
(0.0)%
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.
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
Similar to non-
related parties
There is no significant
difference, and
adjustments will be made
based on demand for
funding if necessary.
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.
(37,844)
(12.3)%
263,964
91.3%
25,132
8.7%
7,960,864
99.6%
89,676
0.4%
-
-
0.0%
0.0%
(7,590,654)
(17.1)%
Just and its
subsidiaries
With the same
ultimate parent
company
HSI and its
subsidiaries
With the same
ultimate parent
company
Forever and its
subsidiaries
HSI and its
subsidiaries
UCGI
JUST and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Rayonnant
Technology and
its subsidiaries
CIH and its
subsidiaries
With the same
ultimate parent
company
Sale
(148,167)
(4.5)% Net 60 days from
delivery
According to markup
pricing
Purchase
196,028
19.2% Net 60 days from
delivery
Similar to non-
related parties
Purchase
211,853
53.3%
60 days
Sale
(1,403,349)
(92.1)%
120 days
BCI and its
subsidiaries
With the same
ultimate parent
company
Sale
(120,513)
(7.9)%
120 days
HSI and its
subsidiaries
Compal Electronic,
Inc.
Parent company
Sale
(66,824,371)
(97.1)%
120 days
Sale
(694,749)
(1.0)%
120 days
Sale
(1,148,812)
(1.6)%
120 days
Sale
(196,028)
(0.3)% Net 60 days from
delivery
Purchase
8,058,473
11.6%
120 days
CIH and its
subsidiaries
With the same
ultimate parent
company
Just and its
subsidiaries
With the same
ultimate parent
company
Etrade and its
subsidiaries
With the same
ultimate parent
company
CIH and its
subsidiaries
With the same
ultimate parent
company
Forever and its
subsidiaries
BCI and its
subsidiaries
With the same
ultimate parent
company
With the same
ultimate parent
company
Purchase
212,507
0.5% Net 60 days from
delivery
Similar to non-
related parties
There is no significant
difference.
(128,048)
(0.3)%
Purchase
424,337
1.0%
120 days
Similar to non-
related parties
There is no significant
difference.
(1,276,398)
2.9%
CBN
Compal Electronic,
Inc.
Parent company
Purchase
160,983
17.0% Net 90 days from
delivery
Arcadyan
Acradyan
Germany
Acradyan
USA
Acradyan
AU
Arcadyan's subsidiary
Arcadyan's subsidiary
Arcadyan's subsidiary
Sale
Sale
Sale
(1,028,804)
(2.0)% Net 150 days from
delivery
(19,847,179)
(42.0)% Net 120 days from
(1,075,651)
delivery
(2.0)% Net 60 days from the
end of the month of
delivery
2.0% Net 60 days from the
end of the month of
delivery
Compal Electronic,
Inc.
Parent company
Purchase
1,497,276
CNC
Arcadyan's subsidiary
Purchase
8,605,578
12.0% Net 120 days from
Arcadyan Vietnam Arcadyan's subsidiary
Purchase
3,346,396
delivery
5.0% Net 180 days from
the end of the month
of delivery
CNC
Arcadyan
With the same
ultimate parent
company
Sale
(8,605,578)
(100.0)% Net 120 days from
delivery
-
-
-
-
-
According to markup
pricing
According to markup
pricing
According to markup
pricing
There is no significant
difference.
(130,494)
(69.0)%
-
-
-
-
-
-
-
208,003
2.0%
3,444,196
39.0%
135,262
2.0%
(685,277)
(6.0)%
(2,871,117)
(26.0)%
(Note 1)
(Note 2)
- %
(Note 1)
2,871,117
(100.0)%
(Note 1)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
96
Table 6 Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(For the year ended December 31, 2023)
Company
Name
Arcadyan
Vietnam
Acradyan
Germany
Acradyan
USA
Acradyan
AU
Counter
party
Arcadyan
Arcadyan
Arcadyan
Arcadyan
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
Transaction details
Transactions with terms
different from others
Notes/Accounts receivable
(payable)
(In Thousands of New Taiwan Dollars)
Purchase/
(Sale)
Sale
Amount
(3,346,396)
Percentage
of total
purchases/
(sales)
Payment terms
(100.0)% Net 180 days from
the end of the month
of delivery
Unit price
According to markup
pricing
Payment Terms
-
Percentage
of total
notes/accounts
receivable
(payable)
- %
Note
(Note 1)
Ending
Balance
(Note 2)
Purchase
1,028,804
100.0% Net 150 days from
delivery
Purchase
19,847,179
100.0% Net 120 days from
delivery
Purchase
1,075,651
100.0% Net 60 days from the
end of the month of
delivery
-
-
-
-
-
-
(208,003)
(100.0)%
(3,444,196)
(100.0)%
(135,262)
(100.0)%
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, 2023 is 1,439,730 thousand dollars.
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
97
Table 7 Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:
(December 31, 2023)
Name of Company
Counter-party
The Company
Arcadyan
Nature of relationship
The Company's subsidiary
The Company
CBN
The Company's subsidiary
The Company
Just and its subsidiaries The Company's subsidiary
The Company
Cal-Comp
The same chairman of the
Company
Just and its subsidiaries Compal Electronic, Inc. Parent company
Ending Balance
685,277
137,791
Turnover
rate
1.33
0.86
4,050,926
(Note 2)
6,407,361
(Note 2)
2,070,603
(Note 2)
(Note 2)
37.47
CIH and its subsidiaries Compal Electronic, Inc. Parent company
49,778,450
CIH and its subsidiaries HSI and its subsidiaries With the same ultimate
parent company
BCI and its subsidiaries Compal Electronic, Inc. Parent company
BCI and its subsidiaries HSI and its subsidiaries With the same ultimate
BCI and its subsidiaries CEB
BCI and its subsidiaries CEA
CEA
CEB
parent company
With the same ultimate
parent company
With the same ultimate
parent company
With the same ultimate
parent company
Rayonnant Technology
and its subsidiaries
CIH and its subsidiaries With the same ultimate
parent company
7,590,654
9,497,819
1,276,398
1,193,411
193,709
943,962
263,964
2.17
1.37
3.22
0.83
0.38
3.68
2.30
6.13
Etrade and its
subsidiaries
Forever and its
subsidiaries
Compal Electronic, Inc. Parent company
995,739
1.84
HSI and its subsidiaries With the same ultimate
128,048
1.23
parent company
HSI and its subsidiaries Compal Electronic, Inc. Parent company
7,960,864
10.38
Arcadyan AU
Arcadyan's subsidiary
135,262
5.16
Arcadyan
Arcadyan
Arcadyan
Arcadyan USA
Arcadyan's subsidiary
Arcadyan Vietnam
Arcadyan's subsidiary
3,444,196
1,439,730
(Note 2)
208,003
2,871,117
(Note 3)
5.26
(Note 2)
2.56
2.93
Arcadyan
Arcadyan Germany
Arcadyan's subsidiary
CNC
Arcadyan
With the same ultimate
parent company
Note 1: Balance as of February 16, 2024.
Note 2: Receivables due to purchasing on behalf of related parties.
Note 3: Accounts receivables due to processing raw material.
(In Thousands of New Taiwan Dollars)
Overdue
Amount
-
Action
taken
-
Amounts received in
subsequent period
-
(Note 1)
Allowance
for bad
debts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
95,958 (Note 1)
4,050,926 (Note 1)
6,406,905 (Note 1)
1,450,425 (Note 1)
47,287,744 (Note 1)
-
(Note 1)
9,497,819 (Note 1)
-
(Note 1)
630 (Note 1)
26,671 (Note 1)
146,874 (Note 1)
-
(Note 1)
307,188 (Note 1)
-
(Note 1)
7,667,057 (Note 1)
118,749 (Note 1)
3,212,352 (Note 1)
-
(Note 1)
15,897 (Note 1)
747,311 (Note 1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
98
Table 8 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
The Company
Investee
Company
Kinpo & Compal Group Assets
Development Corporation
Location
Taipei City
Bizcom
Milpitas, USA
Main Businesses
and Products
Real estate development leasing and
related management business
Warranty services and marketing of
LCD TVs and notebook PCs
Original Investment Amount
Ending Balance
Depcmber 31,
2023
4,025,000
December 31,
2022
525,000
Shares
402,500
Percentage
of
Ownership
70%
Carrying
Value
3,986,402
Net income
(losses) of
investee
(27,399)
Share of
profits/losses of
investee
(19,145)
Note
(In Thousands of New Taiwan Dollars/
36,369
36,369
100
100%
463,533
11,411
11,411
Just
CIH
Panpal
Gempal
British Virgin Islands
Investment
1,480,509
1,480,509
48,010
100%
10,585,776
286,164
286,164
British Virgin Islands
Investment
1,787,680
1,787,680
53,001
100%
45,073,776
2,551,767
2,551,767
Taipei City
Investment
5,171,837
5,171,837
500,000
100%
4,763,551
44,704
6,725
Taipei City
Investment
900,036
900,036
90,000
100%
1,729,447
148,827
126,784
(Note 1)
(Note 1)
Kinpo Group Management
Taipei City
Consultation, training services, etc.
3,000
3,000
300
38%
5,044
434
162
Ripal
Unicore
Tainan City
Taipei City
Lead-Honor
Taoyuan City
Manufacturing of electric appliance and
audiovisual electric products
Management & Consultant, rental and
leasing business and wholesale and
retail of medical equipments
Manufacturing of electric appliance and
audiovisual electric products
60,000
60,000
6,000
100%
114,460
(1,751)
(7,998)
200,000
200,000
20,000
100%
67,239
(17,243)
(17,243)
CEH
British Virgin Islands
Investment
34
34
1
100%
3,618,638
42,000
42,000
2,772
42%
-
-
-
-
-
Shennona Taiwan
Taipei City
Management & Consultant, rental and
leasing business, wholesale and retail
sale of precision instruments and
international trade
20,000
6,000
2,000
100%
17,859
63
163
Allied Circuit
Taoyuan City
Production and sales of PCB boards
395,388
395,388
10,158
20%
405,002
204,120
40,477
Poindus Systems
Taipei City
Aco Smartcare
Hsinchu City
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
353,046
353,046
11,768
56%
337,905
18,886
11,194
159,083
90,000
330,276
71%
65,171
(60,467)
(36,581)
LIPO
CPE
Cayman Islands
Investment
489,450
489,450
98
49%
43,115
(726,686)
(356,076)
The Netherlands
Investment
197,463
197,463
6,427
100%
898,170
34,757
34,757
Starmems
Hsinchu County
Crownpo
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
35,000
35,000
3,500
35%
12,259
(36,374)
(12,731)
149,547
149,547
3,739
33%
621
(117,415)
(39,020)
Taipei City
Investment
1,000,000
1,000,000
100,000
100%
1,192,920
111,601
111,601
Taipei City
Investment
295,000
295,000
29,500
100%
387,050
51,046
51,046
Taichung City
Auscom
Austin, TX USA
Arcadyan
Hsinchu City
Manufacturing of equipment and
lighting, retailing of equipment and
international trading
R&D of notebook PC related products
and components
R&D, manufacturing and sales of
wireless network, integrated household
electronics, and mobile office products
219,601
219,601
21,756
53%
272,981
41,491
20,848
101,747
101,747
3,000
100%
154,186
4,718
4,718
1,325,132
1,325,132
41,305
19%
2,854,945
2,420,569
453,726
Hong Ji
Hong Jin
Mactech
FGH
British Virgin Islands
Investment
2,754,741
2,754,741
89,755
100%
4,161,690
(246,117)
(246,117)
Shennona
Delaware, USA
Medical care IOT business
48,210
48,210
-
100%
16,232
(430)
(430)
HSI
CEP
CGSP
Raypal
British Virgin Islands
Investment
1,346,814
1,346,814
42,700
54%
449,280
413,513
221,560
Poland
Poland
Maintenance and warranty services of
notebook PCs
Maintenance and warranty services of
notebook PCs
Taipei City
Cancerous immunocyte therapy and
regenerative medicine
90,156
90,156
136
100%
(24,107)
14,323
3,540
89,669
89,669
-
100%
92,753
(1,399)
344
209,076
209,076
4,646
30%
167,893
(66,765)
(19,029)
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
99
Table 8 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
The Company
ARCE
Investee
Company
Location
Taipei City
Hippo Screen
Taipei City
Infinno
Hsinchu County
HengHao
Taipei City
Main Businesses
and Products
Biotechnology services, research &
development services, intellectual
property rights, wholesale of animal
medication, retail sale and management
advisory
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
Original Investment Amount
Ending Balance
Depcmber 31,
2023
158,160
December 31,
2022
Shares
60,000
44,540
Percentage
of
Ownership
23%
Carrying
Value
104,286
Net income
(losses) of
investee
(103,713)
Share of
profits/losses of
investee
(26,180)
Note
(In Thousands of New Taiwan Dollars/
112,000
112,000
9,100
91%
10,571
(26,827)
(24,404)
127,026
127,026
4,648
28%
24,850
(26,017)
(7,212)
5,729,757
5,729,757
20,015
100%
(767,963)
15,876
25,773
BCI
CBN
British Virgin Islands
Investment
2,636,051
2,636,051
90,820
100%
9,128,247
572,422
572,422
Hsinchu County
R&D and sales of cable modem, digital
setup box, and other communication
products
284,827
284,827
29,060
43%
469,329
(326,109)
(142,346)
Rayonnant Technology
Taipei City
Manufacturing and sales of PCs,
computer periphery devices, and
electronic components
295,000
295,000
29,500
100%
215,898
18,969
15,649
CRH
British Virgin Islands
Investment
377,328
377,328
12,500
100%
306,661
19,254
19,254
Acendant Private Equity
Investment Ltd.
British Virgin Islands
Investment
943,922
943,922
31,253
35%
1,521,614
34,228
11,885
Etrade
Webtek
Forever
UCGI
Palcom
Avalue
British Virgin Islands
Investment
1,532,029
1,532,029
46,900
65%
(259,807)
(463,604)
105,576
British Virgin Islands
Investment
3,340
3,340
100
100%
610,994
(151,389)
(151,389)
British Virgin Islands
Investment
1,575
1,575
50
100%
1,545,807
17,232
17,232
Taipei City
Manufacturing and retail sale of
computers and electronic components
689,997
689,997
20,000
100%
82,467
(81,407)
(80,146)
Taipei City
Selling of mobile phones
100,000
100,000
10,000
100%
98,152
(11,342)
(11,339)
New Taipei City
Manufacturing, processing, and import
and export business of industrial
motherboards
547,595
547,595
14,924
21%
779,482
602,154
125,916
CORE
British Virgin Islands
Investment
4,318,860
4,318,860
147,000
100%
8,079,840
417,529
417,529
Compal Ruifang
New Taipei City
GLB
New Taipei City
Compal Healthcare
Taipei City
CMX
Mexcio
Investing and developing businesses,
such as public construction and specific
zones
Manufacturing and wholesale of medical
equipment
Information software services, data
processing services, and electronic
information supply services
Production of automotive electronic
products
300,000
100,000
30,000
100%
300,478
538
538
247,560
247,560
15,035
50%
379,334
50,433
21,862
20,000
77,997
-
-
2,000
100%
20,003
3
3
-
100%
92,642
15,018
15,018
Panpal
Arcadyan
Hsinchu City
Telecommunication equipment and
apparatus manufacturing, electronic
parts and components manufacturing,
restrained telecom radio frequency
equipment and materials import and
manufacturing
279,202
279,202
8,192
4%
610,998
2,420,569
__________
104,656,676
Allied Circuit
Taoyuan City
Production and selling of PCB boards
148,263
148,263
2,927
6%
116,705
204,120
Others
Gempal
Arcadyan
Hsinchu City
Telecommunication equipment and
apparatus manufacturing, electronic
parts and components manufacturing,
restrained telecom radio frequency
equipment and materials import and
manufacturing
306,655
306,655
9,279
4%
717,079
2,420,569
(720,869)
Allied Circuit
Taoyuan City
Production and selling of PCB boards
53,645
53,645
3,220
6%
128,375
204,120
Others
(975)
__________
4,088,258
Investment gain
(losses) recognized
by Panpal
Investment gain
(losses) recognized
by Panpal
Investment gain
(losses) recognized
by Gempal
Investment gain
(losses) recognized
by Gempal
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
100
Table 8 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
Hong Ji
Arcadyan
Investee
Company
Location
Hsinchu City
Main Businesses
and Products
Telecommunication equipment and
apparatus manufacturing, electronic
parts and components manufacturing,
restrained telecom radio frequency
equipment and materials import and
manufacturing
(In Thousands of New Taiwan Dollars/
Original Investment Amount
Ending Balance
Depcmber 31,
2023
306,655
December 31,
2022
306,655
Shares
9,279
Percentage
of
Ownership
4%
Carrying
Value
717,079
Net income
(losses) of
investee
2,420,569
Share of
profits/losses of
investee
Investment gain
(losses) recognized
by Hong Ji
Note
Allied Circuit
Taoyuan City
Production and selling of PCB boards
10,389
10,389
851
2%
29,057
204,120
Hong Jin
Arcadyan
Hsinchu City
Telecommunication equipment and
apparatus manufacturing, electronic
parts and components manufacturing,
restrained telecom radio frequency
equipment and materials import and
manufacturing
131,942
131,942
4,609
2%
341,189
2,420,569
Just
CDH (HK)
Hong Kong
Investment
1,912,845
1,912,845
62,298
100%
8,037,301
258,934
CII
CPI
British Virgin Islands
Investment
391,335
283,868
12,745
100%
270,052
(96,811)
British Virgin Islands
Investment
15,353
15,353
500
100%
15,009
1,363
CII
Smart
British Virgin Islands
Investment
31
31
1
100%
377
(4)
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
AEI
MEL
MTL
CNA
CUS
U.S.A
Sales and maintenance of LCD TVs
-
30,705
1,000
0%
-
-
Investment gain
(losses) recognized
by CII
U.S.A
Investment
252,825
252,825
U.S.A
Investment
31
31
-
-
100%
209,575
21
Investment gain
(losses) recognized
by CII
100%
31
U.S.A
Sales of automotive electronic products
76,763
U.S.A
Sales of automotive electronic products
76,763
-
-
2,500
100%
76,763
2,500
100%
(19,631)
(97,813)
CIH
CIH (HK)
Hong Kong
Investment
2,296,811
2,296,811
74,803
100%
44,212,065
2,495,365
Jenpal
British Virgin Islands
Investment
225,682
225,682
7,350
100%
117,441
6,055
PFG
FWT
CCM
IUE
Goal
HSI
British Virgin Islands
Investment
31
31
1
100%
85,596
81,321
British Virgin Islands
Investment
457,505
457,505
14,900
100%
457,504
-
Investment gain
(losses) recognized
by CIH
British Virgin Islands
Investment
156,596
156,596
5,100
51%
6,144
(38,884)
British Virgin Islands
Investment
2,057,235
2,057,235
67,000
100%
1,075,861
417,702
British Virgin Islands
Investment
389,954
389,954
12,700
100%
333,976
(4,189)
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
2,057,235
2,057,235
67,000
100%
1,075,861
417,702
389,954
389,954
12,700
100%
292,617
(4,189)
BCI
CMI
PRI
British Virgin Islands
Investment
2,481,578
2,481,578
80,820
100%
5,724,519
329,358
British Virgin Islands
Investment
307,050
307,050
10,000
100%
3,403,728
243,065
CORE
BSH
British Virgin Islands
Investment
4,513,635
4,513,635
147,000
100%
8,079,840
417,529
BSH
Mithera
Cayman Islands
Investment
155,060
155,060
-
99%
136,929
(3,437)
-
-
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 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
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
101
Table 8 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
BSH
CIN
Investee
Company
Location
Main Businesses
and Products
U.S.A
Manufaturing
Depcmber 31,
2023
249,632
December 31,
2022
249,632
Shares
1
Percentage
of
Ownership
100%
Original Investment Amount
Ending Balance
(In Thousands of New Taiwan Dollars/
Carrying
Value
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
226,337
11,208
HSI
HHB
CEV
British Virgin Islands
Investment
1,136,085
1,136,085
37,000
46%
960,555
413,513
British Virgin Islands
Investment
184,230
Vietnam
1,658,070
R&D, manufacturing, sales, and
maintenance of notebook PCs, computer
monitors, LCD TVs, mobile phones,
tablet PCs, smart watches,
communication equipment, and other
electronic products
-
-
-
6,000
11%
276,345
(249,738)
-
100%
1,694,332
36,796
Forever
GIA
British Virgin Islands Selling of mobile phones
-
CWV
Vietnam
R&D, manufacturing, sales, and
maintenance of notebook PCs, computer
monitors, LCD TVs and electronic
components
61,410
61,410
Webtek
Etrade
British Virgin Islands
Investment
767,625
767,625
25,000
35%
(154,553)
(463,604)
-
-
100%
-
-
Investment gain
(losses) recognized
by Forever
100%
101,047
2,518
Investment gain
(losses) recognized
by BSH
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 Webtek
Unicore
Raycore
Taipei City
Animal medication retail and wholesale
-
-
-
0%
-
-
Investment gain
(losses) recognized
by Unicore
Arcadyan
Arcadyan Holding
British Virgin Islands
Investment
1,071,027
1,071,027
47,780
100%
2,066,961
186,347
Arcadyan USA
U.S.A
Technology support and sales of
wireless network products
23,055
23,055
1
100%
92,028
19,720
Arcadyan Germany
Germany
Technology support and sales of
wireless network products
1,125
1,125
0.5
100%
99,059
7,798
Arcadyan Korea
Korea
Sales of wireless network products
2,879
2,879
20
100%
35,156
11,668
Zhi-Bao
Hsinchu City
Investment
48,000
48,000
34,980
100%
343,292
(63,223)
TTI
Taipei City
R&D and sales of household digital
products
308,726
308,726
25,028
61%
153,318
(79,482)
Arcadyan UK
UK
Technical support of wireless network
products
1,988
1,988
50
100%
5,590
561
Arcadyan AU
Australia
Sales of wireless network products
1,161
1,161
50
100%
69,715
8,257
Arcadyan RU
Russia
Sales of wireless network products
7,672
7,672
-
100%
3,212
(1,005)
CBN
Hsinchu County
Sales of communication and electronic
components
11,925
11,925
533
1%
9,061
(331,620)
Arcadyan and
Zhi-Bao
Arcadyan Brasil
Brazil
Sales of wireless network products
81,593
81,593
968
100%
(45,570)
(1,032)
Arcadyan India
India
Sales of wireless network products
76,952
29,110
19,800
100%
49,894
(18,275)
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 and
Zhi-Bao
Investment gain
(losses) recognized
by Arcadyan and
Zhi-Bao
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
102
Table 8 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Original Investment Amount
Ending Balance
(In Thousands of New Taiwan Dollars/
Investor Company
Arcadyan Holding
Sinoprime
Investee
Company
Location
British Virgin Islands
Investment
Main Businesses
and Products
Depcmber 31,
2023
891,980
December 31,
2022
891,980
Shares
29,050
Percentage
of
Ownership
100%
Carrying
Value
1,580,601
Net income
(losses) of
investee
362,862
Arch Holding
British Virgin Islands
Investment
338,093
338,093
35
100%
622,790
(270,710)
TTI
Quest
Samoa
Investment
36,846
36,846
1,200
100%
10,294
(2,952)
TTJC
Japan
Sales of household digital electronic
products
9,626
9,626
0.7
100%
2,693
(397)
Quest
Exquisite
Samoa
Investment
35,925
35,925
1,170
100%
9,457
(2,960)
Sinoprime
Arcadyan Vietnam
Vietnam
Manufacturing of wireless network
products
890,445
890,445
-
100%
1,575,996
362,769
Zhi-Bao
CBN
Hsinchu County
Produces and sales of communication
and electronic components
36,272
36,272
13,140
19%
223,285
(331,620)
Rayonnant
Technology
APH
British Virgin Islands
Investment
257,454
257,454
8,651
41%
206,209
41,217
Forming Co., Ltd.
Taoyuan City
R&D and manufacturing of electronic
materials
27,300
27,300
1,820
21%
-
-
CRH
APH
British Virgin Islands
Investment
383,813
383,813
12,500
59%
306,661
41,217
APH
PEL
British Virgin Islands
Investment
96,751
96,751
3,151
100%
45,559
1,595
Rayonnant (HK)
Hong Kong
Investment
552,690
552,690
18,000
100%
459,161
39,622
HHT
HHA
British Virgin Islands
Investment
1,429,235
1,429,235
46,882
100%
(1,322,489)
(234,458)
HHA
HHB
British Virgin Islands
Investment
1,439,513
1,439,513
46,882
89%
(1,584,042)
(249,738)
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%
5,266
(344)
7,016
7,016
20
100%
6,267
(164)
10,000
10,000
1,000
10%
3,502
(36,374)
FGH
Wah Yuen Technology Holding Ltd.
and its subsidiaries
Mauritius
Investment
2,755,942
2,755,942
95,862
37%
4,231,691
(677,928)
GLB
PT GLB Biotechnology Indonesia
Indonesia
Manufacturing and wholesale of medical
equipment
88,506
-
42
99%
83,655
351
Mactech
Taiwan Intelligent Robotics
Company, Ltd.
Taipei City
Manufacturing of equipment and
lighting
43,200
43,200
2,160
15%
5,238
(3,360)
Poindus Systems
Poindus Investment
Taipei City
Investment holding
4,100
4,100
(Note 2)
100%
496
(67)
Poindus UK
UK
Sales of PCs and peripherals
14,297
14,297
300
100%
(11,342)
(7,165)
Note
Share of
profits/losses of
investee
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
Technology
Investment gain
(losses) recognized
by Rayonnant
Technology
Investment gain
(losses) recognized
by CRH
Investment gain
(losses) recognized
by APH
Investment gain
(losses) recognized
by APH
Investment gain
(losses) recognized
by HHT
Investment gain
(losses) recognized
by HHA
Investment gain
(losses) recognized
by CBN
Investment gain
(losses) recognized
by CBN
Investment gain
(losses) recognized
by CBN
Investment gain
(losses) recognized
by FGH
Investment gain
(losses) recognized
by GLB
Investment gain
(losses) recognized
by Mactech
Investment gain
(losses) recognized
by Poindus
Systems
Investment gain
(losses) recognized
by Poindus
Systems
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
103
Table 8 The information on investees for the year ended December 31, 2023 (excluding information on investees in Mainland China):
(December 31, 2023)
Investor Company
Poindus Systems
Adasys
Investee
Company
Location
Germany
Main Businesses
and Products
Sales of PCs and peripherals
Depcmber 31,
2023
December 31,
2022
Shares
57,712
57,712
0.002
Percentage
of
Ownership
100%
Original Investment Amount
Ending Balance
(In Thousands of New Taiwan Dollars/
Carrying
Value
Net income
(losses) of
investee
Share of
profits/losses of
investee
Note
3,314
(7,306)
Poindus Investment
Poindus GmbH
Germany
Sales of PCs and peripherals
1,721
1,721
(Note 2)
100%
70
-
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 Poindus
Systems
Investment gain
(losses) recognized
by Poindus
Investment
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
104
Table 9 Information on investment in Mainland China:
(December 31, 2023)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Main businesses and products
Manufacturing and sales of monitors
Total amount of
paid-in capital
1,136,085
Method of
investment
(Note 1)
Accumulated
outflow of
investment from
Taiwan as of
January 1, 2023
1,136,085
Accumulated
outflow of
investment from
Taiwan as of
December 31, 2023
1,136,085
Net income
(losses) of the
investee
204,302
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
204,302
Accumulated
remittance of
earnings in
current period
-
Book value
2,798,518
Investment flows
Outflow Inflow
-
-
(In Thousands of New Taiwan Dollars / shares)
Name of
investee
CPC
CDT
Manufacturing and sales of notebook
PCs, mobile phones, and Digital
products
614,100
(Note 2)
614,100
CET
Manufacturing of notebook PCs
368,460
(Note 2)
368,460
CSD
Research, manufacture and sales of
communication devices, mobile
phones, electronic computer, smart
watch, and provide related technology
service
FIP
Manufacturing of auto parts and
accessories
259,651
(Note 2)
(Note 3)
302,926
(Note 2)
(Note 3)
BT
Manufacturing of notebook PCs
30,705
(Note 2)
30,705
CGS
Maintenance and warranty service of
notebook PCs
8,655
(Note 2)
(Note 3)
982,560
(Note 1)
409,298
-
-
-
-
-
-
-
-
-
-
-
-
-
-
614,100
15,442
100%
15,442
138,610
368,460
87,694
100%
87,694
5,053,795
-
125,012
100%
125,012
404,180
-
(1,443)
60%
(866)
258,799
30,705
17,294
100%
17,294
(98,654)
-
23,859
100%
23,859
(14,311)
409,298
(626,184)
43%
(270,386)
28,494
614,100
(Note 1)
45,136
-
-
45,136
(543,490)
48%
(258,701)
47,562
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; 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
368,460
(Note 2)
368,460
CPO
Manufacturing and sales of LCD TVs
371,531
(Note 1)
371,531
CIT
Manufacturing of notebook PCs
736,920
(Note 2)
736,920
CST
International trade and distribution of
computers and electronic components
42,987
(Note 2)
42,987
Sheng Bao Precision
Electronics (Taicang)
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
307,050
(Note 2)
156,596
CIJ
Investment and consulting services
478,998
(Note 2)
478,998
CDE
Manufacturing and sales of LCD TVs
460,575
(Note 2)
(Note 3)
CIS
CEC
CMC
CEQ
Outward investment and consulting
services
2,481,578
(Note 1)
2,481,578
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
2,456,400
(Note 2)
(Note 3)
24,564
(Note 2)
(Note 3)
307,050
(Note 1)
307,050
Compal Precision
Module (Jiangsu)
Co., Ltd.
Changbao Electronic
Technology
(Chongqing) Co.,
Ltd.
Manufacturing and selling of
magnesium alloy injection molding
12,896,100
(Note 2)
2,537,062
Production and marketing of
magnesium alloy molding
1,842,300
(Note 2)
351,756
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
368,460
551,963
100%
551,963
10,930,283
371,531
125,216
100%
125,216
3,111,095
736,920
1,845,493
100% 1,845,493
27,565,297
42,987
(691)
100%
(691)
44,382
156,596
(47,084)
51%
(24,013)
12,056
478,998
(92,422)
100%
(92,422)
2,551,776
-
(92,361)
100%
(92,361)
2,516,825
2,481,578
329,358
100%
329,358
5,724,519
-
328,816
100%
328,816
5,692,814
-
572
100%
572
25,360
307,050
243,065
100%
243,065
3,403,728
2,537,062
(538,847)
37%
(197,326)
5,233,177
351,756
(69,403)
37%
(25,416)
630,376
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
COMPAL ELECTRONICS, INC.
Notes to Parent-Company-Only Financial Statements
105
Table 9 Information on investment in Mainland China:
(December 31, 2023)
(i) The names of investees in Mainland China, the main businesses and products, and other information:
Name of
investee
Rayonnant (Taicang)
Main businesses and products
Manufacturing and sales of aluminum
alloy and magnesium alloy products
Total amount of
paid-in capital
552,690
Method of
investment
(Note 2)
(In Thousands of New Taiwan Dollars / shares)
Accumulated
outflow of
investment from
Taiwan as of
January 1, 2023
383,813
Accumulated
outflow of
investment from
Taiwan as of
December 31, 2023
383,813
Net income
(losses) of the
investee
39,622
Percentage
of
ownership
100%
Investment
income
(losses)
(Note 4)
39,622
Accumulated
remittance of
earnings in
current period
-
Book value
459,761
Investment flows
Outflow Inflow
-
-
CCI Nanjing
Manufacturing and processing of
mobile phones and tablet PCs
829,035
(Note 1)
675,510
CDCN
Manufacturing and processing of
mobile phones and tablet PCs
178,089
(Note 1)
178,089
CWCN
Manufacturing and processing of
mobile phones and tablet PCs
1,504,545
(Note 1)
583,395
Hanhelt
R&D and manufacturing of electronic
communication equipment
61,410
(Note 1)
61,410
Arcadyan
SVA Arcadyan
R&D and sales of wireless network
products
248,711
(Note 1)
412,061
(Note 7)
CNC
Manufacturing and wireless network
products
382,277
(Note 1)
338,093
THAC
Manufacturing of household
electronics products
371,684
(Note 1(cid:501)
9(cid:501)10)
(Note 8)
35,311
HengHao
HengHao Kunshan
Production of touch panels and related
components
1,228,200
(Note 1)
1,222,151
HengHao Zhejiang Production of touch panels and related
276,345
(Note 2)
(Note 3)
components
Lucom
Manufacturing of notebook PCs and
related modules
460,575
(Note 2)
199,552
(Note 12)
Poindus Systems
Qijie
Sales of PCs and peripherals
30,705
(Note 1)
30,705
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
675,510
(119,549)
100%
(119,549)
(1,301,309)
178,089
(4,985)
100%
(4,985)
84,009
583,395
(331,697)
100%
(331,697)
738,240
61,410
2,929
100%
2,929
2,456
412,061
6,885
100%
6,885
41,114
338,093
(207,710)
100%
(207,710)
622,790
35,311
(4,331)
100%
(4,331)
27,020
1,222,151
(249,493)
100%
(249,493)
(1,477,911)
-
(1,333)
100%
(1,333)
275,032
199,552
1,039
100%
1,039
141,779
-
-
-
-
-
-
-
-
-
30,705
(2,051)
100%
(2,051)
9,589
-
(ii) Limitation on investment in Mainland China:
Names of
Company
The Company
Arcadyan
HengHao
Poindus Systems
Accumulated Investment in Mainland China
as of December 31, 2023
16,658,599
(Note 5)
785,465
1,439,205
30,705
(US$542,537)
(US$25,581)
(US$46,872)
(US$1,000)
Investment Amounts Authorized by Investment Commission
of Ministry of Economic Affairs
24,221,609 (US$788,849)
Limitation on investment in Mainland China by
Investment Commission of Ministry of Economic Affairs
(Note 6)
(In Thousands of USD)
1,054,287 (US$34,336)
1,439,205 (US$46,872)
30,705 (US$1,000)
8,881,334
(Note 13)
322,110
Note 1(cid:28873)
Indirectly investment in Mainland China through companies registered in the third region.
Note 2(cid:28873)
Indirectly investment in Mainland China through an existing company registered in the third region.
Note 3(cid:28873)
Note 4(cid:28873)
Note 5(cid:28873)
Note 6(cid:28873)
Note 7(cid:28873)
Investees held by Kunshan Botai Electronics Co., Ltd. (“BT”), Compal Investment (Jiansu) Co., Ltd. (“CIJ”), Compal Electronic (Sichuan) Co., Ltd. (“CIS”), Compal Electronics (China) Co., Ltd.
(“CPC”) and Compal Smart Device (Chongqing) Co., Ltd. (“CSD;”) 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.
Note 8(cid:28873)
Arcadyan paid US$8,561 thousand and acquired 100% shares of CNC from Just through Arcadyan Holding in 2007.
Note 9(cid:28873)
Arcadyan’s subsidiary, TTI, obtained the control over THAC with US$1,150 thousand on February 28, 2013 (the date of stock transferring).
Note 10(cid:28873)
Arcadyan’s subsidiary, TTI, increase the capital of TCH by accounts receivable of TTI amounting to US$8,755 thousands on August 16, 2023.
Note 11(cid:28873)
The amounts in New Taiwan Dollars were translated at the exchange rates at the balance sheet date or the average exchange rate.
Note 12(cid:28873)
Note 13(cid:28873)
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, 2023.
(iii) Significant transactions:
For the year ended December 31, 2023, 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”.