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 2015. During the
time of industry transition, Quanta should remain competitive and stay cautious to weather the
challenges ahead.
Looking back into 2014, Quanta Computer 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.
Quanta’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.
Quanta Computer 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 non-
notebook 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, Quanta is able to sustain its
competitiveness through reinforcing its leading edge in research and development as well as
innovative design capability.
Furthermore, Quanta Computer 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
2010. 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.
II. Outlook in 2015
Quanta 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. Quanta 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, Quanta’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, Quanta 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, Quanta 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, Quanta will
undoubtedly create greater business value and continue to grow.
Chairman: Barry Lam
Vice Chairman: C.C. Leung
Chief Financial Officer: Elton Yang
* Note: ownership is 100% unless otherwise specified
(Ref. to Chart 1)
Gem-Tech
Precision
Metal Co.,
Ltd.
99.99%
24.81% 75.19% 0.44%
29.78% 37%
9% 9%
Quanta Computer Inc.
36.76%
0.81%
Quanta
Venture
Capital
Co., Ltd.
Quanta
Cloud
Techology
Inc.
RoyalTek
Company
Ltd.
Quanta Computer
Technology Investment
Corp.
TWDT
Precision
Co., Ltd.
Quanta Micro-
Systems
Inc.
CloudCast
Technology
Inc.
(Ref. to Chart 2)
Quanta
Int’l Ltd.
QCJ
Corp.
Quanta Cloud
Technology Japan
Quanta
Storage
Inc.
FaceVsion Technology
Inc.
DTG
(BVI)
Ltd. FaceVsion Technology
USA LLC
FaceVsion
(Changshu)
Trading
Co., Ltd.
FaceVsion
Techology
Hong Kong
Ltd.
Royaltek
Trading
(Changshu)
Co., Ltd.
Dragontech
Metallic
Industry
Co., Ltd.
Dragontech City
Metallic Changshu Co., Ltd.
Royaltek International Enterprises
Ltd.
Fly Dragon
Int’l
Ltd.
Dragon
Grand
Group
Ltd.
Chart 1
Quanta
Research
Int’l, Inc.
Quanta
Research
Cambridge
Inc.
(QRC)
Quanta
Manufact-
uring
Nashville
LLC
Quanta Manufac-turing Inc.
Quanta Computer Inc.
60%
19%
95%
Standard
(Shanghai)
Energy
Co., Ltd.
50%
Access
Int’l Co.
QCG
Computer
GMBH
Quanta Asia Ltd.
QCE Computer
BV
Quanta Capital
Manage-
ment Ltd.
Exmore
Services
Holding
Ltd.
Quanta Development
(Hong Kong)
Ltd.
ThinkTech Ind. E
Com. DE Informatica
SA
QCT
Inc.
QCT
LLC
Quanta Develop-ment Ltd.
QCT
Korea
Inc.
Quanta Int’l Ltd.
Tech Chain
(Hong
Kong)
Ltd.
Gem-Tech (Shanghai) Precision Mold Co.,
Ltd.
Tech
Chain
Ltd.
Quanta
Int’l
Technology
Ltd.
Q_Bus
Int’l
Ltd.
Exmore Services Holding (Hong
Kong) Ltd.
Quanta
Service
Nashville
LLC
Quanta
Computer
Nashville
LLC
QCH
Nashville
LLC
Zhan Yun
(Shanghai)
Electronics
Co., Ltd
Zhan Yun
(Chongqing)
Electronics
Co., Ltd
Changshu Zhan Yun
Electronics
Co., Ltd.
QCH Inc.
a Nashville
Corp.
Quanta
Computer
USA, Inc.
Quanta
Service
Inc.
Tech-Front
(ShangHai)
Computer
Ltd.
Tech-Com
(ShangHai)
Computer
Ltd.
Tech-Lead
(ShangHai)
Computer
Ltd.
Tech-Giant
(ShangHai)
Computer
Ltd.
Tech-Trend
(ShangHai)
Computer
Ltd.
Tech-Wave
(Shanghai)
Logistics
Co., Ltd.
Tech-Full
Computer
(Changshu)
Co., Ltd.
Tech-Front
(Chongqing)
Computer
Co., Ltd.
Tech-Wave
(Chongqing)
Logistics
Co., Ltd.
Kenseisha
Shanghai
P.M.P.
Co., Ltd.
CloudTech
(Beijing)
Technology
Co., Ltd.
CloudTech
(Shanghai)
Technology
Co., Ltd.
CloudTech
(Chongqing)
Technology
Co., Ltd.
* Note: ownership is 100% unless otherwise specified
Quanta Storage Inc.
Quanta Storage
International Ltd.
(CAYMAN)
Techman Electronics
(Hong Kong) Ltd.
Quanta Storage
Investment Inc.
Quanta Storage
Holding Ltd.
E-Forward
Technology Ltd.
Quanta Storage
(BVI)Ltd.
Quanta Storage
Asia Ltd.
Quanta Storage
America, Inc.
Quanta Storage
(Changshu), Ltd.
Techman
Electronics
(Changshu), Ltd.
Quanta Storage
(Shanghai), Ltd.
Quanta Storage
Holding (Hong Kong) Ltd.
Techman Asia Ltd.
Chart 2
(English Translation of Financial Report Originally Issued In Chinese)
Independent Auditors' Report
The Board of Directors of Quanta Computer Inc.:
We have audited the accompanying parent company only balance sheets of Quanta Computer Inc. 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 2013. 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 Quanta Computer Inc. 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.
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.
(English Translation of Financial Report Originally Issued In Chinese)
Independent Auditors’ Report
The Board of Directors of Quanta Computer Inc.:
We have audited the accompanying consolidated balance sheets of Quanta Computer Inc. 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 2013. 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 Quanta Computer Inc. 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.
Quanta Computer Inc. 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
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