Quanta Computer Inc. Annual Report 2014

Transcription

1 Annual Report 2014

2 Report to Shareholders The worldwide personal computer industry faced minor shipment decline in 2014 from the previous year, fortunately, the magnitude of decline was significantly smaller. The mild shipment decline in 2014 signaled the market is gradually recovering and stablizing after recent sharp corrections. However, the PC industry is still expected to see minor decline in During the time of industry transition, should remain competitive and stay cautious to weather the challenges ahead. Looking back into 2014, continued to promote the Three-Five Year Plan led by the four Corporate principles of Superior Quality, Superior Technology, Superior Management, and Superior Outcome. These Corporate principles serve as guidance for continuous improvement on overall operation followed by the ideology of innovation is the core motivation and change is the action model to encourage innovative thinking and to implement various enhancements. The Company strives to deliver superior outcome, continuously identify innovation and breakthrough in every aspect of the business from production to management. s performance for FY2014 and outlook for FY2015 are as follow: I. Revenue and Income Consolidated revenue in year 2014 was NT$926.3BN, an increase of 5.2% from the previous year. Net income after tax in FY2014 and FY2013 was NT$19.2BN and NT$19.1BN respectively. Net income attributable to owners of parent in FY2014 and FY2013 was NT$18.9BN and NT$18.6BN respectively. EPS in FY2014 was NT$4.90, an increase of 1.23% from the previous year. Non-operating income was NT$10.4BN. was able to deliver stable growth in 2014 despite volatility in the PC industry. To cope with changes in the industry, the Company s effort to diversify into nonnotebook business is beginning to bear fruits, strong progress in Cloud Computing related business is especially encouraging. The Company continues to invest in diversification in order to find the right balance between revenue mix and profitability. Furthermore, higher degree of automation is fully implemented in order to build stronger supply chain, to integrate seamless logistics flow and to strengthen product development capability. The ultimate outcome is to boost productivity per capita. Taking advantage of the Company s strength in product delivery efficiency and flexibility as well as large economy of scale, is able to sustain its competitiveness through reinforcing its leading edge in research and development as well as innovative design capability. Furthermore, proactively plays the role of a respectable corporate citizen by taking responsibilities and obligations as a member of the global village. The Company is dedicated to provide solutions that address user s needs by integrating our expertise in both software and hardware. Building on the spirit of creativity, innovation and entrepreneurship, the Company continues to create value that brings human-centric value proposition to the society. The Company has been publishing Corporate Social Responsibility Reports every year since year Third party validation was introduced in 2014 and onwards to improve reliability and quality of the CSR reports and to further enhance the Company s corporate governance and information transparency.

3 II. Outlook in 2015 has been promoting the Three Five-Year Plan since year 2000 and year 2015 is the last year of the plan. A strong foundation has been established after the Company invested ample resources and efforts during the first four years of the third Five-Year Plan. The strong foundation enables the Company to systematically operate overall business, to discover greater potential after dedicated hardwork and to embrace stronger growth rate. continues to follow the four Corporate principles of Superior Quality, Superior Technology, Superior Management, and Superior Outcome in all business conducts to deliver superior outcome. As the global economy gradually recovers in year 2015, s core notebook business will continue to grow and the Company will further devote adequate resources to diversify into new business development. Cloud related business and wearable devices are expected to lead the Company s growth, to accelerate revenue and to add fuel to the Company s profitability. To embrace the ever-changing challenges, must push our limits to think creatively and to take new initiatives to ultimately achieve sustainability. The following four action plans will lead the Company to embrace upcoming new challenges: Identify opportunities ahead of competitions - Gain insights into competitive landscape, foresee future trend, provide customer-driven services, deliver innovative and breakthrough solutions, identify opportunities and act ahead of competitions. Acceleration - Focus on delivering high quality and strong performance to elevate overall operation performance. Simplicity Review and simplify overall operation flow, focus on simplicity, reduce the variety of component types and volume, simplify production and maximize efficiency. Cost Savings - Manage cost savings from material, labor, time, and space. Create the greatest value through minimizing cost and delivering superior products. To succeed in the dynamic competitive landscape, must utilize its strength in innovative thinking and leverage breakthrough technology to achieve greater improvement and to sustain its competitive edge. With strong efforts devoted by the entire organization and its employees, together we can put creative thinking into action plans and to accelerate overall business operation to the next level of success. Building on the superior corporate value of Truthfulness, Kindness, Beauty, Honesty, Trust and Caring, will undoubtedly create greater business value and continue to grow. Chairman: Vice Chairman: Chief Financial Officer: Barry Lam C.C. Leung Elton Yang

4 36.76% 29.78% 37% 99.99% Int l RoyalTek Company 0.81% Technology Investment Corp. Venture Capital Co., Cloud Techology CloudCast Technology Gem-Tech Precision Metal Co., (Ref. to Chart 1) 0.44% 9% 9% 24.81% 75.19% QCJ Corp. Storage TWDT Precision Co., Micro- Systems FaceVsion Technology Royaltek International Enterprises (Ref. to Chart 2) DTG (BVI) Cloud Technology Japan FaceVsion Techology Hong Kong FaceVsion Technology USA LLC Royaltek Trading (Changshu) Co., Fly Dragon Int l Dragon Grand Group FaceVsion (Changshu) Trading Co., Dragontech City Metallic Changshu Co., Dragontech Metallic Industry Co., * Note: ownership is 100% unless otherwise specified

5 Chart 1 Int l Access Int l Co. QCE BV Capital Management Asia QCT LLC QCT Research Int l, 60% ThinkTech Ind. E Com. DE Informatica SA Development 19% Q_Bus Int l Int l Technology QCT Korea Research Cambridge (QRC) 95% Manufacturing Service USA, QCH a Nashville Corp. Development (Hong Kong) Tech Chain Exmore Services Holding QCG GMBH Manufacturing Nashville LLC Service Nashville LLC Nashville LLC QCH Nashville LLC Tech Chain (Hong Kong) 50% Exmore Services Holding (Hong Kong) Standard (Shanghai) Energy Co., Changshu Zhan Yun Electronics Co., Zhan Yun (Shanghai) Electronics Co., Ltd Zhan Yun (Chongqing) Electronics Co., Ltd Gem-Tech (Shanghai) Precision Mold Co., Tech-Front (ShangHai) Tech-Com (ShangHai) Tech-Lead (ShangHai) Tech-Giant (ShangHai) Tech-Trend (ShangHai) Tech-Wave (Shanghai) Logistics Co., Tech-Wave (Chongqing) Logistics Co., Kenseisha Shanghai P.M.P. Co., Tech-Front (Chongqing) Co., Tech-Full (Changshu) Co., CloudTech (Beijing) Technology Co., CloudTech (Shanghai) Technology Co., CloudTech (Chongqing) Technology Co.,

6 Chart 2 Storage Storage International (CAYMAN) Storage Investment Storage (BVI) E-Forward Technology Storage Holding Storage Holding (Hong Kong) Techman Electronics (Hong Kong) Techman Asia Storage Asia Storage America, Storage (Shanghai), Storage (Changshu), Techman Electronics (Changshu), * Note: ownership is 100% unless otherwise specified

7 (English Translation of Financial Report Originally Issued In Chinese) Independent Auditors' Report The Board of Directors of : We have audited the accompanying parent company only balance sheets of as of December 31, 2014 and 2013, and the parent company only statements of comprehensive income, changes in stockholders' equity, and cash flows for the years ended December 31, 2014 and The Company s management is responsible for the preparation and presentation of the parent company only financial statements. Our responsibility is to issue a report on these financial statements based on our audits. We conducted our audits in accordance with the "Rules Governing the Audit of Financial Statements by Certified Public Accountants" and auditing standards generally accepted in the Republic of China. Those rules and standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the parent company only financial statements referred to in the first paragraph present fairly, in all material respects, the parent company only financial position of as of December 31, 2014 and 2013, and the results of its operations and its cash flows for the years then ended, in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers. KPMG CPA: Chiang, Chung Yi Yang, Leou Fong Taipei, Taiwan, R.O.C. March 30, 2015 Note to Readers The accompanying financial statements are intended only to present the financial position, results of operations and cash flows in accordance with the International Financial Reporting Standards approved by the R.O.C Financial Supervisory Commissions and not those of any other jurisdictions. The standards, procedures, and practices to audit such financial statements are those generally accepted and applied in the Republic of China. The auditors report and the accompanying financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of, the English and Chinese language auditors report and financial statements, the Chinese version shall prevail.

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13 (English Translation of Financial Report Originally Issued In Chinese) Independent Auditors Report The Board of Directors of : We have audited the accompanying consolidated balance sheets of and its subsidiaries ( the Group ) as of December 31, 2014 and 2013, and the consolidated statements of comprehensive income, changes in stockholders equity, and cash flows for the years ended December 31, 2014 and The Company s management is responsible for the preparation and presentation of the consolidated financial statements. Our responsibility is to issue a report on these consolidated financial statements based on our audits. We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to in the first paragraph present fairly, in all material respects, the consolidated financial position of and its subsidiaries as of December 31, 2014 and 2013, and the results of their consolidated operations and their consolidated cash flows for the years then ended, in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), interpretation as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China. has additionally prepared the parent company only financial statements as of and for the years ended December 31, 2014 and 2013, on which we have issued an unqualified opinion. KPMG CPA: Chiang, Chung Yi Yang, Leou Fong Taipei, Taiwan, R.O.C. March 30, 2015 Note to Readers The accompanying financial statements are intended only to present the financial position, results of operations and cash flows in accordance with the International Financial Reporting Standards approved by the R.O.C Financial Supervisory Commissions and not those of any other jurisdictions. The standards, procedures, and practices to audit such financial statements are those generally accepted and applied in the Republic of China. The auditors report and the accompanying financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of, the English and Chinese language auditors report and financial statements, the Chinese version shall prevail.

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