ＨＴＣ
Sadat Musharraf Ohin
Departmnent of Business Administration
HTC corporation
HTC Corporation is a Taiwanese consumer electronics company that was founded in 1997. Initially, HTC focused on manufacturing notebooks but later transitioned tobecome one of the early pioneers in the mobile phone industry.
Company Snapshot
Founded: May 1997
Global Operations: Taiwan, China United Kingdom United States Japan
Wireless Operator Europe: T-Mobile, O2, Orange, Vodafone, TIM, Telefonica
US: Verizon, Sprint, AT&T, T-Mobile USA Japan: NTT DoCoMo, Softbank Mobile
OEM: Palm, HP, Dell
Employees: 4,029 total, 1,245 R&D (May of 2007)
2023 Revenue: US$ 1276 Million
Financial Status:
Unit: NT$ thousands
Items 2022 2021 Difference %
Current Assets
27,585,609 26,435,790 1,149,819 4
Properties, plant and equipment
7,036,248 7,485,331 (449,083) (6)
Intangible Assets
81,321 34,334 46,987 137
Other Assets 11,737,058 10,229,502 1,507,556 15
Total Assets 46,440,236 44,184,957 2,255,279 5
Current Liabilities 13,727,123 14,568,530 (841,407) (6)
Non-current Liabilities 7,153,953 2,393,525 4,760,428 199
Total Liabilities 20,881,076 16,962,055 3,919,021 23
Capital Stock 8,295,153 8,245,050 50,103 1
Capital Surplus
16,160,271 16,005,339 154,932 1
Retained Earnings
4,909,467 8,189,019 (3,279,552) (40)
Other Equity
(3,805,731) (5,216,506) 1,410,775 27
Total Stocks Equity
25,559,160 27,222,902 (1,663,742) (6)
Operating results:
Items 2022 2021 Difference %
Revenues 4,408,823 5,253,279 ( 844,456 ) ( 16 )
Gross Profit 1,729,978 1,636,057 93,921 6
Operating Loss
( 4,403,831 ) ( 4,116,434 ) ( 287,397 ) ( 7 )
Non-operating Income and Expenses 989,780 1,011,869 ( 22,089) ( 2 )
Net (Loss) Income before Tax
( 3,414,051) ( 3,104,565 ) ( 309,486 ) ( 10)
Net (Loss) Income from Continuing Operations
( 3,411,783 ) ( 3,101,817 ) ( 309,966 ) ( 10 )
Non-Continuing Operations Loss - - - -
Net (Loss) Income ( 3,411,783 ) ( 3,101,817 ) ( 309,966 ) ( 10 )
Other Comprehensive Income and Loss for the Year, Net of
Income Tax 1,543,006 100,084 1,442,922 1,442
Total Comprehensive Income for the Year ( 1,868,777 ) ( 3,001,733 ) 1,132,956 38
(Loss) Profit for the Year Attributable to Non-Controlling
Interest ( 3,411,783 ) ( 3,073,132 ) ( 338,651 ) ( 11 )
(Loss) Profit for the Year Attributable to Non-Controlling
Interest - ( 28,685 ) 28,685 100
Total Comprehensive (Loss) Income Attributable to Owners of
the Parent ( 1,868,777 ) ( 2,972,424) 1,103,647 37
Total Comprehensive Loss Attributable to Non-Controlling
Interest - ( 29,309 ) 29,309 100
(Loss) Earnings Per Share- Basic ( 4.13 ) ( 3.75 ) ( 0.38 ) ( 10 )
(Loss) Earnings Per Share- Diluted ( 4.13 ) ( 3.75 ) ( 0.38 ) ( 10 )
Downfall of HTC Corporation
Intense Competition
Lack of Marketing and Advertising Effectiveness
Shift in Consumer Preferences
Conclusion
HTC's financial performance has been adversely affected by declining market share and sales volumes, leading to reduced revenues. HTC Corporation should provide accurate information about the situation, its impact, and the steps being taken to mitigate the crisis. HTC Corporation should conduct a thorough review of the situation to identify lessonslearned and areas for improvement.
