Qisda - Annual Report 2012 | FinancialReports.eu

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QISDA 20 2 AN AL R

i n o A i l 16 , 2 13 i s A l r i s a i l a l e a h : / / Q i s . c

Table of Content & Contact Information

Message to Our Shareholders ………………………………………………………………………………	2
us ess O erat o e e ……………………………….……………………………………………..….	3
or orate o er a e ……………………………………………………………………………………..	8
o a a als ………………………………………………………………………………………….

Contac t I nfor

ati on

QISDA CORPORATION

Headquarters / Taoyuan Plant

157 Shan-Y i ng R oad , G i s han, T aoyu an 333, T ai w an, . O . C . hone : 8 -3-359 -8 Tai p ei of f i c e 18 J i hu R oad , Ne i hu , T ai p i 114 , T ai w an, R . O . C . hone : 8 -2-279 -8

STR & TR SF A T

ai s hi n I nte nati onal B ank

1, 9 J i ang o N. R oad , Se . 1, T ai p i 10 , T ai w an, . O . C . hone : 8 -2-250 -8 125 http : / / w . tai s hi nb ank . c om . tw

PE T A TA TS

STO R TI S C TA TS

Sp ok esp erson

av i d W ang Se ni or V i c P i d nt and C hone : 8 -3-359 -8 i nv tor i s a. c om ep uty Sp ok esp erson J as i n Hu ng oc i ate V i c P i d nt hone : 8 -3-359 -8 i nv tor i s a. c om

Shi h, W i -M i ng & Soni a C hang C P at M ar i c l , T ai p i 10 1 T ow No. 7, Se . 5, X i nyi R oad , T ai p i 110 , ai w an, R . O . C . hone : 8 -2-8 10 1-6 http : / / w . k . c om . tw

STI STO E HA L STI

i sda C om on sh ares

ai w an Stoc E hang C or or ati on http : / / w . ts . c om . tw / e n/

SD O THE I TE T

i s a’ s I nv tor R l ati ons hom p ag on the SE S SE TY E HA L STI or l d i d w i te of f e a w al th of c or or ate or f u the i nf or ati on, v i s i t Q i s a w or l d i d w i nf or ati on, i nc l u i ng the l ate t annu al r or t and and L og i n at I nv tor R l ati ons f i nanc i al r l ts . i sda G lob al D ep osi tary Sh ares i te : Q i s a. c om / i r . htm Stoc E hang

or f u the i nf or ati on, v i s i t Q i s a w or l d i d w i te and L og i n at I nv tor R l ati ons i sda G lob al D ep osi tary Sh ares Stoc E hang I SI N: U S0 230 120 10 http : / / w . b ou . l u

es ag e to ou r S areh old ers

essag e to ou S ar eh old er s

ear esteem ed Q i sda shareholders,

i sda’s c on soli dated rev en ue f rom i ts c ore b usi n ess i n 20 2 w as N 84 .5 b i lli on , w hi le N .3 b i lli on of w hi c h w as on tri b uted b the T ai w an -b ased p aren t c om an . T he c on soli dated gross p rof i t f rom i ts c ore b usi n ess w as N .9 i lli on , w hi c h w as the f ourth c on sec uti v e y ear of ac hi ev i n g c ore b usi n ess p rof i t. H ow ev er, due to i n estm en t loss rec orded un der eq ui ty m ethod an d other n on -op erati n g ex en ses, n et loss af ter tax w as N 2.6 b i lli on , an d af ter tax loss p er share w as N 1 .32.

i sda f ac ed en orm ous c hallen ges i n b usi n ess op erati on ov er the p ast f ew y ears due to sluggi sh glob al ec on om i c grow an d un ertai n ti es i n m ac ro ec on om . D esp i te these c hallen ges, Q i sda w as ab le to m ai n tai n i ts c on soli dated rev en ue of ore b usi n ess i n a stab le lev el, an d c on ti n ue ac hi ev i n g steady p rof i t f rom i ts c ore b usi n ess b dev elop i n g n ew p roduc as w ell as ex lori n g n ew c ustom ers w hi le low eri n g c ost an d i m rov i n g ef f i c i en . Y et, due to i n estm en t loss rec orded un der eq ui ty m ethod, the an ual op erati n g result w as a loss.

I n term s of b usi n ess op erati on , b esi des i n essan t ef f orts on i m rov i n g c ore b usi n ess p rof i tab i li ty , Q i sda k ep t on sharp en i n g i ts tec hn ologi c al edge an d em loy ed i t as a soli d f oun dati on f or f uture c om eti ti on . B i n tegrati n g stron ap ab i li ti es i n di sp lay , i m agi n g, op toelec tron i c s, w i reless c om un i c ati on an d sof tw are dev elop en t, Q i sda gradually tran sf orm ed the desi gn an d m an uf ac turi n g serv i c e f rom that f or “ i n di v i dual dev i c e” i n to a v alue-added “ i n tegrati on an soluti on m ode. T he grow th of sales f rom Q i sda’s c ore p roduc t - di gi tal p roj ec tor c ould b e seen i n b oth D an d L odels w i th i n reased m ark et share, w hi c h gai n ed Q i sda on e step c loser to the leader i n the i n dustry . A s f or L on i tors, ev en though the glob al dem an d dec reased m ore then 1 i n 20 2, Q i sda’s L m on i tor shi p en t on ly drop ed sli ghtly an d ac hi ev ed a b etter result c om ared to i ts c om eti tors, w hi c h gai n ed Q i sda on e p lac e up to the 2[nd] largest p lay er i n the L m on i tor i n dustry . T he grow th of di gi tal p roj ec tor an d L m on i tor b usi n esses w as a result an d soli d p roof of Q i sda’s c on stan t f oc us on the i m rov em en t of c om eti ti v en ess i n c ore b usi n ess. I n addi ti on , the sales of n i c he an d p oten ti ally p rof i tab le p roduc ts, suc h as p rof essi on al an d i n dustri al m on i tors, reac hed 6 of the total sales. hese ef f orts an d results p rov i ded a stron g f oun dati on f or Q i sda to sai l through f uture c hallen ges an d ac hi ev e grow th.

ook i n g ahead 20 3, due to hi ghly un redi c tab le f ac tors i n glob al ec on om an d rec essi on i n som e regi on s of the w orld, lus c on ti n uous m ark et sup ressi on of tab let dev i c es ov er P s, dem an d f or L m on i tors i s li k ely to c on ti n shri n i n g ov er ti m e. Q i sda p lan s on i m rov i n g the c om eti ti v en ess b laun hi n g L m on i tors f eaturi n g large p an si z e an d L b ac li ght m odule as w ell as en teri n g i n to the sm art di sp lay m ark et. Q i sda i s also p lan i n g on i n reasi n roj ec tor m ark et share b i n troduc i n g hi gh-b ri ghtn ess, hi gh-def i n i ti on an d n on -li ght b all ( an d laser) sourc roduc ts. F or n i c he an d p oten ti ally p rof i tab le p roduc ts, Q i sda i n ten ds to i n rease the p rop orti on of rev en ue f rom these roduc ts through c on ti n uous i n tegrati on of the c om an ’s c ore c om eti ti v en ess. W i th these strategi es, Q i sda i s ex ec ted to ac um ulate lon g-term v alue ev en i n an un stab le ec on om i c en i ron en t.

i sda p lac es i m ortan e on the estab li shm en t of lon g-term v alue an d c on ti n uous sustai n ab i li ty . A av erage of 3% of i ts an ual rev en ue has b een sp en t i n researc h an d dev elop en t, w hi c h earn ed Q i sda ap rox i m ately 1 , 1 p aten ts aroun the w orld. Moreov er, Q i sda rec ei v ed the I n dustri al I n ov ati on A hi ev em en t A ard f rom the Mi n i stry of E on om f f ai rs f or i ts Medi c al G atew ay dev i c e. Q i sda i s c om i tted to sustai n ab le dev elop en t an d soc i al resp on si b i li ty , an d w om i n ated f or the C SR R ep ort B est P rac ti c es b the I n dustri al D ev elop en t B ureau of Mi n i stry of E on om i c A f f ai rs an d rec ei v ed the 20 2 T ai w an C SR A ards f rom T ai w an I n sti tute f or Sustai n ab le E ergy f or the c om an ’s hi gh degree of tran sp aren i n ec on om i c al, en i ron en tal an d soc i al sustai n ab le dev elop en t i n di c ators.

e are ex trem ely gratef ul to eac h an d ev ery shareholder f or thei r lon g-term sup ort an d en ouragem en t. T an agem en t team w i ll c on ti n ue to w ork un easi n gly to deli v er the greatest b en ef i t to b oth the c om an an shareholders.

Si n erely ,

.Y . L ee, C hai rm an erm i t H uan g, P resi den t av i d W an g, C hi ef F i n an i al Of f i c er

ines O eration R ev iew

si ness O er ati on R ev i ew

Business Description

i n S

Ov i e o f Op i o

LCD Monitor: Mark et share an d ran i n g w i thi n the i n dustry hav e b oth i m rov ed i n 20 2. Q i sda w i ll c on ti n ue to f oc us on f orti f y i n g relati on shi p w i th b ran d c ustom ers, dev elop i n g n ew p roduc t f eatures an d en gagi n g i n v alue-added v erti c al i n tegrati on ac ti v i ti es, suc h as p an el m odule assem ly an d i n -house m ec han i c al p arts m an uf ac ture. Mean hi le, i sda w i ll also ac ti v ely i n est i n tec hn ologi c al researc hes an d dev elop di sp lay s w i th i n tegrated desi gn s an d c loud c on ec ti v i ty .

roj e tor: i sda’ s p roj ec tor OD M b usi n ess m ai n tai n ed the top 2 p osi ti on w orldw i de i n 20 2 w i th i n reased shi p en t an d m ark et share. Moreov er, asi de f rom D p roj ec tors, Q i sda i s the on ly m an uf ac turer i n T ai w an that i s ex eri en ed i n L p roj ec tor m ass p roduc ti on an d shi p en t.

Mob il e De ic : I n 20 2, Q i sda deli v ered W i n dow s sm artp hon es, A droi d 4 .0 p hab lets an d sm artp hon es w i th ualc om ’ s latest 28-n c hi p set. I n the researc h of hi gh-en d p roduc ts, Q i sda has also en gaged i n the early stages of L m ob i le dev i c e dev elop en t.

Pr Of i n

LCD Monitor: .6 / 1 8.5 / 1 / 20 / 21 .5 / 22” / 23” / 24 / 27 C on sum er an d C om erc i al L m on i tors, i de-sc reen an d p rof essi on al L m on i tors, all-i n -on e P s an d i n terac ti v e touc h-sc reen m on i tors.

roj e tor: w i de ran ge of p roj ec tors f or hom e, of f i c e an d educ ati on al ap li c ati on s.

Mob il e De ic : MA / H SP sm artp hon es, Mob i le I n tern et D ev i c es ( MI D , T ab let P s an d 4 L sm artp hon es.

i e o O i o

Cu St a Tr i n De l o o t In

LCD Monitor: s i n di c ated b m ark et researc h rep orts, m ark et sc op e f or L m on i tors dec li n ed at an an ual rate of 8~ i n 20 2 as sales v olum e f or p erson al c om uters dw i n dled due to tw o m aj or f ac tors; sp ec i f i c ally , the f ai lure f or i n dow s 8 to b oost P sales as i n i ti ally ex ec ted an d the i m ac t of m ob i le dev i c es rep lac i n g p erson al c om uters. esp i te ex ec tati on s of ec on om i c rec ov ery , m ark et f orec ast f or L m on i tors c alls f or c on ti n ued dec li n ati on at a rate of 4 8% i n 20 3. W i th n egati v e grow th rate f or the L m on i tor m ark et an d the f luc tuati on i n glob al raw m ateri al ri c e, sy stem i n tegrators f ac e stern c hallen ges i n m ai n tai n i n g c urren t c ost lev el an d retai n i n g m ark et c om eti ti v en ess. I n the f uture, Q i sda w i ll ai m to m ai n tai n i ts ov erall c om eti ti v en ess through dev elop i n g n ew p roduc t f eatures, en han i n g roduc t v alues, op ti m i z i n g sup ly c hai n an d v erti c al i n tegrati on an d sustai n i n g op ti m al ec on om i es of sc ale.

roj e tor: A ordi n g to i n dustry an aly si s rep orts, the total n um er of p roj ec tor shi p en t w orldw i de w as 7 .8 m i lli on un i ts i n 20 2, w i th a 5 i n rease ex ec ted f or 20 3. Sp ec i f i c ally , the v olum e rati o f or hi gh b ri ghtn ess, hi gh resoluti on an d n on -li ght b all ( an d laser) sourc e roj ec tors w i ll c on ti n ue to i n rease i n the f uture.

Mob il e De ic : A ordi n g to I D rep ort, the total glob al sm artp hon e shi p en t reac hed 4 m i lli on un i ts i n 20 an d m i lli on un i ts i n 20 2. I n 20 3, the total sm artp hon e shi p en t w orldw i de i s ex ec ted to ex eed on e b i lli on un i ts. elerated grow th i n 4 L dep loy en t an d ap li c ati on s c an also b e seen i n 20 3.

Ov i e o f Su l y Ch i n

LCD Monitor: U stream b usi n ess p artn ers c on si st m ai n ly of L p an el m an uf ac turi n g an d m odule assem li n g p lan ts,

ines O eration R ev iew

i n ludi n g k ey c om on en ts suc h as L p an els, L b ac li ght m odules an d c on trol c hi p sets. Mi dstream an d dow stream p artn ers i n lude sy stem i n tegrators an d b ran d c ustom ers, w hi c h rep resen t a m ature an d c om eti ti v e ark et. Q i sda has dev elop ed an d m ai n tai n ed stron g an d lon g-term relati on shi p w i th all of our up stream strategi c sup li ers an d dow stream b ran d c ustom ers.

roj e tor: U stream p artn ers c on si st of a li n e of op toelec tron i c dev i c e m ak ers, i n ludi n g p an el c hi p set, len s an d sp ec i ali z ed lam m an uf ac turers. Mi dstream an d dow stream p artn ers i n lude p roj ec tor m an uf ac turers an d b ran d ustom ers. A i n ti m ate y et i n tri c ate relati on shi p ex i sts am i d up stream , m i dstream an d dow stream f ac tori es as alli an e an d c om eti ti on i n tertw i n es am on gst b usi n ess c om eti tors.

Mob il e De ic : U stream p artn ers i n lude telec om un i c ati on I C , di gi tal p roc essor, touc h p an el an d m em ory c hi p sup li ers. Mi dstream an d dow stream p artn ers are gen erally c ap ab le of p roduc t dev elop en t an d m ark eti n g, w i th a selec t f ew c ap ab le of p roduc t m an uf ac turi n g.

Tr i n De l o a M Co i t i o o t Co ’ s Pr

LCD Monitor: I n a m ature m ark et suc h as the L m on i tor m ark et, i n addi ti on to i n reasi n g c ost c om eti ti v en ess an d of f eri n g f lex i b le deli v ery , Q i sda ai m s to w ork c losely w i th b ran d c ustom ers an d sy stem i n tegrators to dev elop 3D di sp lay , c loud c on ec ti v i ty , w i reless ap li c ati on an d other c ustom i z ed an d sp ec i alty ap li c ati on p roduc ts to f ulf i ll di v erse dem an ds of the n i c he m ark et.

roj e tor: he m ark et f or p roj ec tors has ex an ded as i m rov em en ts ap li ed to c om erc i al p roj ec tors ac elerated due to the adv en t of the latest tec hn ologi es. I n addi ti on to an ec on om i c al p ri c e tag, p roj ec tors hav e b ec om e sm aller an d li ghter w hi le the b ri ghtn ess an d resoluti on hav e b een v astly en han ed. I t i s esti m ated that the dem an d f or roj ec tors w i ll c on ti n ue to i n rease glob ally f rom the 7 .8 m i lli on un i ts shi p ed i n 20 2.

Mob il e De ic : ollow i n g the heels of the p op ulari z ati on of 3G m ob i le I n tern et, the 4 L sm artp hon e w i th hi gher tran sm i ssi on sp eed i s also ac elerati n g i ts p ac e f or c om erc i al ap li c ati on . W i th grow i n g dem an ds f or m ob i le I n tern et an d relev an t ap li c ati on s, w e f ully ex ec t telec om un i c ati on c arri ers to ex an d thei r b an dw i dth i n order to c ater to ustom er dem an ds f or hi gh sp eed I n tern et c on ec ti on . Maj or c arri ers i n N orth A eri c a, W estern E urop e, J ap an an d orea hav e started c om erc i ali z i n g 4 L n etw ork s f rom 20 to 20 2, w i th N orth A eri c a already reac hi n g 7 ark et share i n 20 2. W e f oresee si gn i f i c an t an d ac elerated grow th i n the c om erc i ali z ati on of 4 L n etw ork i n 20 3.

& D l o

Te l o i e i n De l o

LCD Monitor: Mon i tors f eaturi n g U SB 3.0 ap li c ati on s, p rof essi on al/ sp ec i alty m on i tors an d di f f eren ti ati on / low -c ost b ac li ght m odules.

roj e tor: I n dustry -leadi n g L p roj ec tors, laser p roj ec tors an d 1 80 hi gh resoluti on p roj ec tors.

Mob il e De ic : A droi d 4 .0 , Q ualc om 28 n dual-c ore sm artp hon es, w ater an d dust resi stan t sm artp hon es an d 5 , .3” p hab lets.

i g l i g i n Fu Te l o i c l De l o

LCD m onitors : 4 2K hi gh-def i n i ti on m on i tors, sm art di sp lay s, w i reless ap li c ati on m on i tors an d thi n f ram e/ f ram eless on i tors.

roj e tor: U ltra short-throw rati o, w i de-sc reen ( 80 , hi gh b ri ghtn ess, touc h-p an el p roj ec tors, an d p roj ec tors f or educ ati on al p urp oses, as w ell as large c om erc i al p roj ec tors w i th ultra-hi gh b ri ghtn ess c ap ab i li ty . On -goi n g ef f orts i n lude m ai n tai n i n g b alan e b etw een tec hn ologi c al adv an em en t an d p rac ti c al ap li c ati on w hi le c on ti n ui n g w i th the i m rov em en t i n c olor m an agem en t an d resoluti on .

Mob il e De ic : Q uad-c ore sm artp hon es, 4 L sm artp hon es, p hab lets, w i reless c om un i c ati on ap li c ati on s an d

ines O eration R ev iew

sm art di sp lay s em loy i n g m ob i le c om un i c ati on sy stem s.

- a S -t B i n D l o P l a

Sh Te B i n De l o Pl a

LCD Monitor:

(A) rov i de all si z es of L di sp lay s an d p rom ote large-si z e, hi gh-p erf orm an e an d L b ac li ght m odels w hi le ac ti v ely en gagi n g i n m on i tor-related ap li c ati on researc hes as w ay s to m ai n tai n Q i sda’ s p osi ti on as on e of the top three an uf ac turers w orldw i de.
(B ) I n rease add-on v alue i n v alue c hai n s through v erti c al i n tegrati on , suc h as p an el m odule assem ly , b ac li ght m odule desi gn , i n -house stam i n g an d i n -house p lasti c i n j ec ti on .

roj e tor:

on ti n ue dev elop i n g D an d L p roj ec tor tec hn ologi es i n order to m ai n tai n tec hn ologi c al adv an em en t an d sup eri ori ty w i thi n the i n dustry .

Mob il e De ic :

ev elop i n ov ati v e 4 L sm artp hon es an d i n rease add-on v alues to strategi c ally sup ort the ex an si on of
OD M b usi n ess i n m aj or E urop ean m ark ets.
Stren gthen b usi n ess relati on shi p w i th glob al an d regi on al b ran d c ustom ers b lev eragi n g the c oop erati on w i th
ustom ers an d up stream sup li ers to en han e c om eti ti v e edge i n ov erall c ost.

Te B i n De l o Pl a

LCD Monitor:

(A) han e p roduc t c ustom i z ati on c ap ab i li ti es an d eli m i n ate n on -ef f i c i en t ac ti v i ti es w i thi n the v alue c hai n through the sy hron i z ati on of desi gn an d p roduc ti on p roc ess of b ac li ght m odule an d di sp lay s, thus of f eri n g di v ersi f i ed an d alue-added p roduc ts.
(B ) on ti n ue c oop erati n g w i th A Op tron i c s C orp . ( O) . Mean hi le, f orm strategi c alli an es w i th other m aj or an el sup li ers.

roj e tor:

an d an d en han e p roduc t di v ersi f i c ati on s f or hom e, of f i c e an d educ ati on al m ark ets.

Mob il e De ic :

(A) ec om e on e of the leadi n g sm artp hon e m an uf ac turers w orldw i de through tec hn ologi c al i n ov ati on an d sustai n ed
ex an si on i n L sm artp hon e b usi n ess.
(B ) ssi st b ran d c ustom ers to ex an d thei r b usi n ess i n sm art term i n al dev i c es b i n reasi n g add-on v alues w i th f lex i b le usi n ess m odels, c ustom i z ed p roduc ts an d tai lor-m ade c ustom er sup ort an d serv i c es.

ark ets and S al es

A l y i s

j o Sa l e M

orldw i de

Sh

LCD Monitor: s on e of the top three L m on i tor m an uf ac turers w orldw i de that oc up i es the leadi n g p osi ti on i n

ines O eration R ev iew

the i n dustry . Q i sda held ap rox i m ately 9 .9 m ark et share i n 20 2.

roj e tor: W i th m ark et share at ap rox i m ately 1 , Q i sda has m ai n tai n ed as on e of the top tw o p roj ec tor OD Ms orldw i de i n 20 2.

Mob il e De ic : Q i sda ai m s to estab li sh p artn ershi p s w i th b ran d c ustom ers b p rov i di n g m i d-en d to hi gh-en d p roduc t OD M serv i c es.

St i e Fo l a B o Fu De , G , Co i t i v Ni c , a l l a Po i t i v a Ne i v Fa i n M Tr LCD Monitor:

osi ti v e f ac tors: A s the i n dustry c on soli dates, b i g p lay ers are li k ely to rem ai n large.
egati v e f ac tors: Sev ere p ri c e c om eti ti on i n a m atured m ark et as c ost an d p ri c e b ec om e ex trem ely i m ortan t to
ran d c ustom ers an d c on sum ers. A t the sam e ti m e, f luc tuati on i n glob al raw m ateri al p ri c es an d C hi n a w age hi k e
i n reases m ateri al an d lab or c osts, stressi n g out the sup ly c hai n . Moreov er, the tren d f or m ob i le dev i c es to rep lac e p erson al c om uters f urther i m ac ts the dem an ds f or c on sum er an d c om erc i al L m on i tors.
Strategi es: Mai n tai n the leadi n g p osi ti on w i thi n the i n dustry through f orti f y i n g v erti c al i n tegrati on an d ex an di n g ec on om i es of sc ale; i m rov e p roduc ti on p roc ess b reduc i n g lab or usage w hi le i n reasi n g c ell p roduc ti on li n es to ac hi ev e b etter f lex i b i li ty ; m ax i m i z e the b en ef i ts f rom ec on om i es of sc ale an d i n rease m ark et share b :
i . rov i de di sp lay s w i th all p an el si z es an d p rom ote large-si z e, hi gh-p erf orm an e an d L b ac li ght m on i tors here Q i sda i s b eli ev ed to p ossess di sti n t adv an tage ov er c om eti tors.
i i . ulti v ate an d m ai n tai n strategi c p artn ershi p s w i th top -ti er p an el v en dors to en sure sm ooth sup ly of c ri ti c al arts.
i i i . I n rease add-on v alue w i thi n the v alue c hai n through v erti c al i n tegrati on , suc h as i n tegrati n g the desi gn / assem ly p roc ess f or p an el m odule an d b ac li ght m odule an d i n reasi n g the rati o of i n -house stam i n g an d i n -house p lasti c i n j ec ti on .
i v ulti v ate n ew m ark ets an d i n rease p roduc t un i t p ri c e an d gross p rof i t b dev elop i n g m on i tors w i th c loud on ec ti v i ty an d w i reless ap li c ati on s uti li z i n g c urren t researc h an d dev elop en t c ap ab i li ti es.

roj e tor:

(A) osi ti v e f ac tors: I n addi ti on to the b en ef i t f rom ec on om i es of sc ale, leadi n g tec hn ologi es allow Q i sda’ s p roj ec tors to rem ai n c om eti ti v e on a glob al sc ale an d m ark et share i s ex ec ted to c on ti n ue i ts grow th.
(B ) egati v e f ac tors: Shorter p roj ec tor p roduc t li f ec le an d m ark et p ri c e di srup ti on c aused b grow i n g n um er of om eti tors an d si m i lar p roduc ts.
(C ) Strategi es:
i . I n rease op erati on al ef f i c i en i n order to c on trol i n en tory an d f ulf i ll c ustom er n eeds.
i i . Stren gthen p roduc t li n eup b i n reasi n g the rati o of p roduc ts w i th hi gh gross p rof i ts.

Mob il e De ic :

P osi ti v e f ac tors: Q i sda w as the f i rst to dev elop m ob i le dev i c e em loy i n g Q ualc om ’ s q uasi -L 826 a c hi p set w i th ater an d dust resi stan t c ap ab i li ti es an d hav e m ark eted i t i n C hi n a. Suc h f eat w as ac om li shed b en gagi n g i n the researc h of L tec hn ology as early as the en d of 20 through c oop erati n g w i th glob al b ran d c ustom ers i n c on duc ti n g ev aluati on s f or L p roj ec ts i n i ts early testi n g stage. B the en d of 20 2, Q i sda turn ed the heads of m aj or L sm artp hon e sup li ers i n the E urop ean m ark et. I n the f uture, Q i sda p lan s to c ulti v ate the A eri c an an d E urop ean L ark ets b ased on thi s tec hn ology .

N egati v e f ac tors: D i f f i c ulti es i n ob tai n i n g p roduc t desi gn an d c oop erati on op ortun i ti es w i th m aj or glob al b ran d ustom ers f or hi gh-en d p roduc ts, as m ost of these b ran ds already p ossess i n -house p roduc t desi gn c ap ab i li ti es.

Strategi es:
i . hoose strategi c c ustom ers p ruden tly : E ourage m utual grow th b dev elop i n g q uali ty p roduc ts f or strategi c

ines O eration R ev iew

ustom ers.

i i . orld-c lass I D desi gn an d sof tw are c ustom i z ati on c ap ab i li ti es: I n addi ti on to m ai n tai n i n g sup eri or tec hn ologi c al edge i n li ghtw ei ght hardw are desi gn , Q i sda also ai m s to p rov i de total soluti on serv i c es w i th aw ard-w i n i n g i n dustri al desi gn c ap ab i li ti es to dev elop c ustom i z ed sof tw are ap li c ati on s to c om lem en t our uali ty hardw are.
iii. ey c om on en t group strategy : G ai n c om eti ti v e edge b lev eragi n g group c om an i es’ sy ergy to gai n ac ess i n c utti n g-edge tec hn ologi es f or k ey c om on en ts li k e L M an d touc h m odules.

A l i c i o a M P

Pr Ap l i c i o

Mon i tor: V i sual di sp lay of c om uter outp uts.

roj ec tor: P ortab le an d m ulti -user c ap ac i ty ; sp ec i f i c ally , c on f eren es, m eeti n gs an d trai n i n gs f or c om erc i al an d educ ati on al i n sti tuti on s, as w ell as p rov i de theater-q uali ty v i deos f or hom e theaters an d gam i n g c on soles.

Mob i le D ev i c e: V oi c e telec om un i c ati on an d m ulti m edi a/ c om un i ty ap li c ati on s.

Pr

Mon i tor: I n om i n g i n sp ec ti on � A ssem ly � P re-set � B urn -i n � F un ti on test � E teri or i n sp ec ti on � ac agi n g � I n en tory � Shi p i n g.

roj ec tor: I n om i n g i n sp ec ti on � Op ti c al sy stem assem ly � Module assem ly � B urn -i n � F i n al test � P ac agi n g � I n en tory � Shi p i n g.

Mob i le P roduc t: C ellular P hon e( Sm artp hon e) : I n om i n g i n sp ec ti on � SMT � L oop ac test � C ali b rati on � un ti on test � P ost b urn -i n test � E teri or i n sp ec ti on � P ac agi n g � I n en tory � Shi p i n g.

i e o R M i a l S l y

LCD Monitors : C on ti n ue c oop erati n g w i th A Op tron i c s C orp . ( O) to dev elop sup eri or v erti c al i n tegrati on as ell as m ai n tai n i n g c lose p artn ershi p s w i th top -ti er p an el v en dors i n T ai w an an d K orea i n order to en sure sm ooth sup ly of p an els at low er c osts.

roj e tor: A state of oli gop oly rem ai n s f or D MD an d L p an els as sup li ers are li m i ted to T I , E son an d Son . L am sup li ers are i n a si m i lar state due to the i n dustry ’ s hi gh en try lev el. Q i sda has m ai n tai n ed c lose relati on shi p w i th sup li ers to en sure sm ooth sup ly of k ey c om on en ts. A t the sam e ti m e, Q i sda adop ts a dual-ap roac h m ethod b lev eragi n g p roc urem en t an d i n -house researc h c ap ab i li ti es f or k ey c om on en ts. T hi s allow s Q i sda to reduc e c osts b reati n g n egoti ati on f lex i b i li ty w i th m ass q uan ti ty p roc urem en t an d b i m lem en ti n g si m li f i ed p roduc ti on p roc esses hi c h w ere m ade p ossi b le w i th tec hn ologi c al up grades an d m oduli z ed desi gn s.

Mob il e De ic : I n addi ti on to c on ti n uously i n tegrati n g sm artp hon e c om on en t sup ly c hai n s i n T ai w an , the urgen f or i n troduc i n g sup ly c hai n s i n C hi n a has grow si gn i f i c an tly i m ortan t, p arti c ularly i n op ti c s, di sp lay m odule, touc h odule, glass lam i n ati on an d p lasti c i n j ec ti on .

Corp orate G ov ernance

Cor or ate G ov er nanc e

orporate G ov ernance S tructure

i sda c om li es w i th C om an L aw , the Sec uri ti es an d E han ge A t, an d other relev an t law s an d regulati on s of the ep ub li c of C hi n a to f orm ulate an d i m lem en t the c om an ' s c orp orate gov ern an e struc ture. Q i sda' s c orp orate gov ern an e struc ture m odel i s m ade up of three un i ts, the b oard of di rec tors, audi t c om i ttee an d rem un erati on om i ttee. T he audi t c om i ttee i s m ade up all of i n dep en den t m em ers of the b oard of di rec tors. T he rem un erati on om i ttee m em ers w ere ap oi n ted b resoluti on of the b oard of di rec tors. Mem ers of the b oard of di rec tors i n ludi n g i n dep en den t di rec tors) are selec ted b ased on shareholder v otes. I n p ri n i p al, the resp on si b i li ti es of the oard of di rec tors are c arri ed out i n ac ordan e w i th relev an t law s, c om an regulati on s, an d shareholder resoluti on s. he b oard of di rec tors i s also resp on si b le f or sup erv i si on of c om an m an agem en t an d ov erall op erati on al status. T he audi t c om i ttee' s resp on si b i li ti es i n lude ac urate f i n an i al rep orti n g, selec ti on an d p erf orm an e of i n dep en den t ac oun tan ts, ef f ec ti v e i m lem en tati on of i n tern al c on trols i n ac ordan e w i th relev an t law s an d regulati on s, an d an agem en t of ex i sti n g an d/ or p oten ti al ri sk . T he rem un erati on c om i ttee w i ll ex erc i se the c are of a good adm i n i strator i n f ai thf ully p erf orm i n g the of f i c i al p ow ers, an d shall sub i t i ts rec om en dati on s f or deli b erati on b the oard of di rec tors.

i sda has alw ay s b eli ev ed that up holdi n g shareholder ri ghts an d i n terests i s a p ri m ary task . I n addi ti on to hav i n g a rof essi on al m an agem en t team ri c h i n ex eri en e, the b oard of di rec tors also p ossesses the n ec essary ex ec uti v e ow ledge, tec hn ologi c al k ow -how , p rof essi on al ac om li shm en ts, an d dev oti on to the m ax i m i z i n g shareholder ri ghts an d i n terests. T he b oard of di rec tors has 9 m em ers ( i n ludi n g 3 i n dep en den t di rec tors) . T he c hai rm an i s elec ted b the b oard. B oard m em ers all hav e 5 or m ore y ears ex eri en e i n b usi n ess adm i n i strati on , legal, f i n an e, ac oun ti n g, or other p rof essi on al ex eri en e req ui red b the c om an .

rim R ol es of G ov ernance E ntities ary

i sda' s b oard of di rec tors c on si ders c om an an d shareholder i n terests as top p ri ori ti es i n p erf orm i n g op erati on al ev aluati on s an d p assi n g si gn i f i c an t resoluti on s. T he audi t c om i ttee f ulf i lls a sup erv i sory role through p ruden t an d aref ul ov ersi ght of the op erati on s of the c om an an d the b oard of di rec tors.

o D i r

ordi n g to the Sec uri ti es an d E han ge A t A rti c le 26 , P aragrap h 3, Sub aragrap h 8 regulati on s, Q i sda c reated the egulati on s G ov ern i n g P roc edure f or B oard of D i rec tors Meeti n gs" . Of f i c i al b oard of di rec tor b usi n ess, op erati on al roc edures, rec ords of of f i c i al b usi n ess, an d an oun em en ts on c om an an d other related m atters are c arri ed out ac ordi n g to these regulati on s. Q i sda' s b oard of di rec tors shall c on en e at least on e p er q uarter. T he gui di n g p oli c of the b oard m em ers shall b e to m ax i m i z e shareholder ri ghts an d i n terests through up ri ght m an agem en t, f ai thf ul ob li gati on , the hi ghest degree of p erson al ov ersi ght, an d p ruden t ap li c ati on of the authori ty of thei r p osi ti on s.

i t C i t

I n 20 8, the c om an set up i n dep en den t di rec tors an d an audi t c om i ttee i n ac ordan e w i th the Sec uri ti es an d han ge A t an d shareholder resoluti on s. T hrough the " udi t C om i ttee C harter" as def i n ed b the b oard of di rec tors, the audi t c om i ttee p reserv es an d stren gthen s the organ i z ati on ' s strategi c p oli c i es an d w ork s to i n rease op erati on al ef f i c i en through p rac ti c al ap li c ati on of c orp orate gov ern an e. Q i sda' s audi t c om i ttee m ust c on en e at least on e p er q uarter an d req uest the atten dan e of ac oun tan ts, i n tern al audi tors, ri sk m an agem en t, legal, an d f i n an e dep artm en t rep resen tati v es. B p rov i di n g i n f orm ati on on audi t c om i ttee rep orts an d i n ui ri es i n to rec en t f i n an i al rep orti n g status, the results of i n tern al audi ts, si gn i f i c an t li ti gati on , an d f i n an i al op erati n g status, the audi t c om i ttee an assi st i n estors i n en suri n g that c om an gov ern an e i s tran sp aren t an d shareholder ri ghts an d i n terests are saf eguarded.

Corp orate G ov ernance

i o C i t

he rem un erati on c om i ttee w i ll ex erc i se the c are of a good adm i n i strator i n f ai thf ully p erf orm i n g the of f i c i al p ow ers li sted b elow , an d shall sub i t i ts rec om en dati on s f or deli b erati on b the b oard of di rec tors; A . P resc ri b e an d eri odi c ally rev i ew the p erf orm an e rev i ew an d rem un erati on p oli c , sy stem , stan dards, an d struc ture f or di rec tors, sup erv i sors an d m an ageri al of f i c ers. B . P eri odi c ally ev aluate an d p resc ri b e the rem un erati on of di rec tors, sup erv i sors, an d m an ageri al of f i c ers.

Board of Directors

M

Date: April 1 , 2 3

t	Na	at on n	nt o t on
ha an		, S t an S , t a n n n , Nat ona a an n ty nt, o t a t n	ha an t on o , n o to a on t on o , n at a o o at on
to	Stan Sh h	Hono a y o to o nt nat ona a , h n , an a at S hoo o nt nat ona ana nt Hono a y o h , n ty o a , a Hono a y o to o hno o y, h Hon on o yt hn n ty Hono a y h , S , S , Nat ona h ao n n ty o- o n , ha an t o th o	ha an So t a ta o to a n , t on o , Nan Shan n an o any t n n nt to a an S on to an a t n o any
to	Sh a	, Nat ona h n h n ty S , t a n n n , Nat ona h n n n ty o at nt, a nt, a o	ha an a on t on o , a o hno o y o , ay S on to o o at on to n o
to	n o n at on- H t H an	, Nat ona a an n ty t on n n n , Nat ona a n t t t o hno o y	nt, a o to a t on o
to	t on o - o-H n a	, Nat ona h ao n n ty , n n t at on, Nat ona h n n n ty , o nt on, t on o S n o , n o at on hno o y ay an a t n , t on o n o at on hno o y ay n o , t on o	o So t on n o , t on o to o o at on
to	h na o nt n t a an - athyHan	, nt a onn t t Stat n ty	S n o n a n t nt a t nt, h na o nt n t a an to o t h n t a o , t , ta t on o o at on, an o o o at on
n n nt to	an an	h , h St t o hno o y, an , an , a t o S to o n t y, S , an o tat on ann n an S , n n n , Nat ona a an n ty to an o o , a at n t t t on o n t a ono ,Nat ona nt a n ty	h o o h na n ty o hno o y n n nt to o o a an hno o o , t , o o a h a o , t S o at n t hno o y n
n n nt to	n an	S , t a n n n , Nat ona a an n ty nt, o o t a an n a ana , hno o y n n a ana , H a an	ha an an o to ant h o , t , an n n o at on, n , n nt nat ona n , y on o o at on S o o a o n at on n
n n nt to	y Sh n	, t o a , n ty o h an S , han a n n n , Nat ona h n n n ty nt, han an o a a to o o any nt, o o Ho oto o any	Non

Corp orate G ov ernance

i a l R l u i o A b B M i n

ate	ro al ents
2 12 3	1 t a nan a t o 2 11 2 o th o o a o 2 11 t o n at on y a an a 3 o a n o to o non- o t t on t t on o to on n 2 11 a nn a n a t n 5 o to oan o n S 2 to a h o o to o a ant S 3 o a o
2 12 2	1 t a nan a t o 2 12 1 2 o th han o a nt 3 o to th t n a n a o 2 11 a nn a n a t n
2 12 2	1 t a nan a t o 2 12 2
2 12 1 2	1 t a nan a t o 2 12 3 2 o to o a ant S 5 o a o
2 13 3 7	1 o a nan a t o 2 12 2 o th o o a o 2 12 t o n at on 3 o a n o to o non- o t t on t t on o to on n 2 12 a nn a n a t n 5 o to oan o n S 1 to a h o

Creating Value for Shareholders and iv ing B ac to the Com unity is an I ntegral P art of Q isda Value

i sda’ s b oard ai m s to c on ti n ue ac ti n g i n the b est i n terest of our shareholders, i n ac ordan e w i th c om on ly ac ep ted orp orate gov ern an e p ri n i p les. I t’ s w i th the hi ghest stan dard that our b oard m em ers w ork c losely w i th a dedi c ated team of audi t c om i ttee an d c erti f i c ate p ub li c ac oun tan ts i n c arry i n g out i ts sup erv i sor duty . he b oard m em ers shall b en hm ark Q i sda agai n st b est-i n -c lass c orp orate gov ern an e p rac ti c es i n saf eguardi n g shareholders’ i n terests an d m ak i n g rec om en dati on s that w i ll en han e return -on -i n estm en t to our shareholders.

by K.Y. Lee, Chairman

Corp orate G ov ernance

E i v O i c

Date: April 1 , 2 3

T tle	a e	Personnel du at on er en e	t er urrent Pos t ons
nt	H t H an	, Nat ona a an n ty t on n n n , Nat ona a n t t t o hno o y	to a t on o
S n o nt , S y ha n ana nt		, a t n n ty S , t on n n n , h n an h t an n ty	-
S n o nt , n o at on hno o y o t o	o H an	, n H a n ty n n , n ty o n h	-
S n o nt, nan ana nt	a an	S , n ty o a a h tt S , nan , Nat ona h n H n n ty o a o, o o a o, o	to n S o , a y on t n o o at on S o a t on o , a So t on n
nt , o a n t a o t o	H an	S , ono , Nat ona a an n ty ha h n n , o yo, a an a t n ana , a on hno o yn	-
nt h n , at n nt	an an	S , n t a n, h Stat a y o n t an n n St tt a t S, t , n atho n ty	S o a an n nt
nt, N n o nt	ha a	, Nat ona h n h n ty S , t a n n n , Stat n ty o N o S, t a n n n ,Nat on a an n ty	-
nt , an a t n at on	a H ao	S , h a n n n , a an n ty , t on o	-
nt, an a t n at on	a an	h , han a n n n , h o Stat n ty S, han a n n n ,Nat on a an n ty	-
nt, o o at a ty ana nt	S a H an	, Nat ona h n h n ty S , hy , a an n ty	-

Corp orate G ov ernance

roup O rg aniz ation

O i z i o C

Date: April 16, 2013

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Corporate Governance

Date: Dec em er 31, 2012

i l i a C i e

is Corp ora tion

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nuf ur ing S ub sid ia ies l es S ub sid ia ies Inv est ent / H l d ing C nies
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Company F i nanc i al s

Company Financials

Capital and Shares

Shares Type and Shares Outstanding

	Authorized Shares	Authorized Shares	Authorized Shares
				otes
Shares e	utsta di shares	-issued shares	ota shares

Common Shares	1,966, 81,9 8	3,033,218,0 2	,000,000,000	-

Ow nershi and D istrib utio n o Shares p

		As o A ri 1 2 13
	u er o shareho ders	u er o shares he d	o shares he d
omes n a s her omes Cor ora ons ore n ns ons an n a s omes nan a ns ons o ernmen en es o a	1 9,136 1 8 30 8 6 1 9,682	1,320,21 ,888 299, 2,8 3 189, ,308 1 ,00 ,098 8,821 1,966, 81,9 8	6 13% 1 2 % 9 6 % 98% 0 00% 100 00%

et W rth, E arning, D iv idends and M ark et P ric e P er Share


		ar 31 2 13	2 12	2 11
ar e r e er Share	hes ar e r e o es ar e r e era e ar e r e	8 3 6 61 6	9 2 90 33	22 2 8 11 9
e or h er Share( o e 1)	e ore s r on er s r on	9 9 9 9	9 3 9 3	10 9 10 9
arn n s er Share ( S)	e h e era e Shares S S-a s e ( o e 2)	1,966, 90 -0 3 -0 3	1,96 ,908 -1 32 -	1,96 ,182 -1 -1
en s er Share	Cash en s S o en s- arn n s S o en s- Ca a S r s m a e n s r e en	- - - -	- - - -	- - - -
e rn n n es men	r e arn n a o ( o e 3) r e en a o ( o e ) Cash en e a e( o e )	- - -	- - -	- - -

1 : S j e t c a f t s l d ’ m i n r l u i o 2 : R i v a j u f o c i t l i z i o o f b 3 : P i c / E i n r i o = A m p i c / E i n p s 4 : P i c / D i v i d r i o = A m p i c / C d i v i d p s 5 : C d i v i d y i e l d r = C d i v i d p s / A m p i c

iv idend P l ic y

i n t Q i s ' s A i c l e o f I n i o , t c ' s d i v i d p l i c i s a f o l l o :

f t m i n t f i n l s l e o f a , t C s l l a l l o t n p f i t , i f a , a i n t t f o l l o i n s : p i n t t , m i n u l o f o p i n y , s i n a i d 1 0% t f f o l e l r , i n a i d o r i n s i a l r i n a w i t t r l a i o o f t c a i t i e . I f t i s r i d l a a f t d i n t a s a , t C s l l d i s i b t r i d l a i n w i t t f o l l o i n o :

0% o f t r i d l a t e l o a b ;
m t 1 o f r i d l a f o r i o o f d i r ;
l l o p o f t r i n i n r i d l a t t s l d a d i v i d a b .

I n t e t t e l o b p i d i n I t 1 o f t p i n p i s s b , t e l o o f i c o f o i g a f f i l i a o f t C a e i t l e t r i v s s b . T B o f D i r o o p a i z b t B o f D i r i s a i z t d i n t q l i f i c i o a d i s i b i o f o d i s i b i n t s b .

C i s b l o t t l o i c l a c i t l c i t h i g t i n a i s i n t g i n p i o . I n t e l o -t c i t l p l a i n a s i s f y t s l d w i t c f l o d , t C a i v i d s l u a i t d i v i d p l i c . T f o , t C c l d k g i n a o i n e . I f t h s l u p f i t a t e o f t f i s l y , w d i s i b i n d i v i d , t C s l d c i d t f u e i n a c f l o d a d i s i b d i v i d b s m i n l y a c p i a l l y . P i n i p l l y , t r i o f c d i v i d t t l d i v i d s l d n l o t T p o f t l d i v i d .

st R ec ent 5 -year F inanc ial A nal ysis

		ear	ear	ear	ear	ear
	te
		2 12	2 11	2 1	2	2

nan a ra os	o a a es o o a asse s(%)	63	61		8	6
	nan a a a o e asse s (%)	2,080	2,320	2, 62	2,21	2,288
ra os	C rren ra os(%)	8	10	123	81	10
	ra os (%)	0	91	108		98
	me n eres earne	-	-	0	-	-
era n er orman e ana s s	rno er( mes)	6 62	6	6 80	11	36
	rno er a s				1	8
	n en or rno er( mes)	2 16	31 09	3	33 9	28 29
	rno er ( mes)	6	90	12 19	13 13	11 61
	n en or rno er a s	13	12	10	11	13
	e asse s rno er( mes)	0 36	6	39 3	29 88	2 3
	o a asse s rno er ( mes)	1 3	1 2	1 08	0 91	1 18
ro a ra os	e rn on asse s(%)	( )	( )	8	(2)	(3)
	e rn on e (%)	(13)	(1 )	1	(8)	(1 )
	era n n ome o a - n- a a(%)	( )	2	1	0	(8)
	o a - n- a a (%)	(13)	(1 )	21	(9)	(16)
	e n ome ra o(%)	(3)	( )	6	( )	( )
	S( )	(1 32)	(1 )	1 9	(0 9 )	(1 )
Cash o	Cash o ra o (%)	3	18	(2 )		2
	Cash o a e a (%)	6	-	-	-	-
	Cash re n es men ra o (%)	2	10	(9)	2	12
e era e	era n e era e	-	1 6	269		-
	nan a e era e	-	-	-	-	-

Company F i nanc i al s

Attachment 1 � nd ep end ent Au i to ’ s R ep t & Au i ted F i nanci al S tatements

A i t ’ R

B o f D i r i s C i o :

h a i t t a i n n -c l i d b l a s o f Q i s C i o ( “ ) a o 31 , 2 01 a 2 01 , a t r l a n -c l i d s o f o i o , c i n s l d i t , a c f l o f o t y t e . T f i n i a l s a t r i b i l i t o f t C ’s . O r i b i l i t i s t e a o i n i o o t f i n i a l s b o o a i t .

c o a i t i n a w i t t “ l a i o G i n A i t i n a C i f i c i o o f F i n i a b C i f i e P l i c A a a i t i n s g l l y a i n t R l i c o f C i n s a r l a i o r i r t w p l a a p f o t a i t t o i n r l e a a t f i n i a l s a f r o f m i a l m i s . A a i t i n l u e i n i n , o a t b i s i d s i n t a a d i s l o i n t f i n i a l s . A a i t a l s i n l u a i n t i n p i n i p l e u a s i g i f i c e i m m b m , a w l l a e l u i n t o l l f i n i a p i o . W b l i e t o a i t p i d a r l e b i s f o o o i n i o .

I n o o i n i o , t n -c l i d f i n i a l s r f e t i n t f i r p p f a i r l y , i n a l l m i a , t f i n i a l p i t i o o f Q i s C i o a o f D 31 , 2 01 a 2 01 , a t r l t o f i t i o a i t c f l o f o t y t e , i n c f o i t w i t a i n p i n i p l e g l l y a i n R l i c o f C i n .

a i n n -c l i d f i n i a l s a o f a f o t y e D 31 , 2 01 , h b l a i n U i t S d l l a s l e l y f o t c i e o f t r . W h a i t t t l a i o , a i n o o i n i o , t n -c l i d f i n i a l s e i n N T i w d l l a h b t l a i n i t S d l l a o t b i s s f o i n n 2 ) o f t n t t n -c l i d f i n i a l s .

C i f i e P l i c A

i p i , T i w ( R l i c o f C i n 7 , 2 01 3

The accompanying non-cons ol id at ed f inancial s t at ement s ar e int end ed onl y t o pr es ent t he f inancial pos it ion, r es l t s of oper at ions , and cas h f l ow in accor d ance w it h accou nt ing pr incipl es and pr act ices gener al l y accept ed in t he R epu l ic of C hina and not t hos e of any ot her j u is ict ions . The s t and ar , pr oced es and pr act ices t o au it s ch f inancial s t at ement s ar e t hos gener al l y accept ed and appl ied in t he R epu l ic of C hina.

i s C i o

-c l i d B l a S 3 , 2 a 2 i n t o f N Ta i w d l l a a U d l l a )


T T :
						3 3 0
			�			0		0	3
					- - � 3 -				-
						3 3 0
							3 3 3
						0	3
						0 3			3 3
				0			00 00
						0	0 3
	– 3 3 T 0 0 3 00 0 - :
			30 0 0 0 0 - - � - 30 3 3 3
			� -			-			-
					T -	3 03	300 3 03 33
					:
		00 3 0 3 0 0 33 03 30 0 0 3 0 3 - -
		3 0 0 3 3 0 0 0 3 ) ) 0								)
					3				3 0
							0 3
					:
						0 03	3
		0 3 0 3 3 3 0 3
		3 3 – - 33 3 3 0
				3 3 T 0 3
					T

(N ot e: T ransl at i on of N ew T ai w an d ol l ar amou nt s i nt o U . S. d ol l ar amou nt s i s i nc l u ed i n t he non-c onsol i d at ed f i nanc i al st at ement s sol el y f or t he c onv eni enc e of t he read ers, u si ng t he noon b i ng rat e of t he F ed eral R eserv e B ank i n N ew Y ork on D ec emb er 31, 2012, of N 29. 05 t o U S$ 1 u ni f orml y f or al l t he f i nanc i al st at ement s ac ou nt s. )

i s C i o -c l i d B l a S ( i n ) 3 , 2 a 2 ( i n t o N Ta i w d l l a a U d l l a )


T T :
	- 3 0 0 0 0 � 3 3 0 0 3 30
			3			3	303	3		3
	3 3 3 0 0 0 0 - -
	- 0 0 0 3 3 0 0
			- 0							3
			T 0 0 3				03	0
		- :		0		3 00		3
		:
				30			0 0
	- - � - 00 3 3 3 3 03 0 T 3 0 T 3 0 30 0 3
			:
		0				0				033
	3 3 0 3 0 0 3 0 - -
				-					-
			)	3 0 )		3	3 )		3)
	- - 0 ) 03 ) )
					)		0 )		3		)
			T	3		3	3
			T

i s C i o -c l i d S o O i o t y e D 3 , 2 a 2 i n t o f N Ta i w d l l a a U d l l a e e i n p s )


T T 3 0 3 0
							0 )					30 3		03	)	33 )
							3 3 0					0	03
								-
								3 0 00						3
								:
						)									)	)
											)	3	3)						)
									03 0		)		0		)	)
									30 0 )				0 )			0			)
								)		3 3				3	)	30			)
		-						:
										3							3
	3 0
	- 3 3 0
													3
			-					:
						3					)	0			)	)
										3 0 )		0 3		)		)
								0			)		-				-
										3 )			-				-
										0 )					)				)
									00 )			3	3 0 )			3 )
										3 30 3)		00		)		0			)
										0	)	-				-
				)											)		)
							T
					):
											)			)				)
											)			)				)

Qisda Corporation on-c onsol idate d S tate nts of Ch ang s in S toc ol de rs’ E ity or th y ars e nde d D r 3 , 2 and 2 pre sse d in th ou sands of N T aiw an dol l ars)

			Common o C					n n n m
n o n - - - - - - - - -
			-	-	-				-		-	-	-
			-	-		-				-	-	-	-
	- - - - - - - - - - - - -												-
		-		-		-	-		-	-	-
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
n o m - - - - - - -
			-	-	-			-			-	-	-
			-	-		-				-	-	-	-
		-		-		-	-		-	-	-
- - - - - - - - - - - - - - - -
- - - - - - - - - - - - - -
		n o m				-	-

: D i r ’s r i o o f $ , 2 a e l o b o f $ , 0 h b d i n t 2 n i n

: T l a i o o f N T i w d l l a a i n U . S . d l l a a i s i n l u i n t n -c l i d f i n i a l s s l e l y f o t c i e o f t r , u i n t n b i n r o f t F l B i n N Y o D 3 , 2 , o f N . 0 t U u i f o l y f o a l l t f i n i a l s a . )

Qisda Corporation on-c onsol idate d S tate nts of Cash F l ow s For the years ended December 31, 2011 and 2012 ressed i n thou sands of New T ai w an dol l ars and U dol l ars)

					2011							2012

			t			11 1 )					1 )			)
		t t t t t t t t t t t t t t 1 1 1
			t t t t t t 1 t 1 1 )														)
			t t t t t
				t t t t t	1 1					1
			) t t t t 1 ) 1 t t t 1 - -
				t t - - t t	1 1 )				1 1 )								)
			t t t )			1 1					1 )					)
			t t t t t t t t		)												)
			t		1							)		)
			t t		1 )
			t ) 1 t t t 1 1 1
			t			1 1		)			1	)		1		1 )
			P t t t					)			1	)					)
			P t 1 1 t 1 1 1
			t t t t 1 t 1 ) - -
			t t t				)					)		)
			t t t t								)						)
				t - t		1 )					1	)					)
											1
		P t t			1 1 -								-
		P t t t 1 t t t t t ) 1 1) 1 1)
		P t t t 1 1 1 1 t t t - ) )
			t								1 1
				t t		1 )					1 )				1 )
			t t 1 1 1
		) t-t			1							)	11				)
				t -					1 )							1 )
		-t t 1 -t t ) ) 1															)
			t		-							)				1	)
			t t 1 )						-				-
					1 )							)	1 )
				)	11							)	1 )
1 1 1 1 1 1 2 101 11 11

		t t t			22						20 1					2
	t 10 1 - t t t t 1 0 ) 1																)
			t	t t t t	111 0				1 0			)				11	)
			- - t			2 )					1				1 2
		t		t - - t t t	1 2		)				2 221
				t t t

te : T l a ti o o f N T i w d l l a a ts i n to U . S . d l l a a ts i s i n l u i n th n -c l i d te f i n i a l s ta te ts s l e l y f o th c i e o th r , u i n th n b i n r te o f th F l R B i n N Y o D 3 1, 2 12 , o f N . 0 to U 1 u i f o l y f o a l l th f i n i a l ta te ts a ts . )

ndep endent A di tors’ R ep ort

B o f D i r i s C i o :

h a i t t a i n c l i d b l a s o f Q i s C i o ( “ ) a i d i a i e a o f D 3 , 20 a 20 2, a t r l a c l i d s o f o i o , c i n l d ’ e i t , a c f l o f o t y t e . T f i n i a l s a t r i b i l i t o C ’s m . O r i b i l i t i s t e a o i n i o o t f i n i a l s b o o i t .

I n o o i n i o , t c l i d f i n i a l s r f e t i n t f i r p p f a i r l y , i n a l l m i a , t c l i d f i n i a l p i t i o o f Q i s C i o a s i d i a i e a o f D 3 , 20 a 20 t c l i d r l t o f t i r o i o a t i r c f l o f o t y t e , i n c f o i t w i t i n p i n i p l e g l l y a i n t R l i c o f C i n .

a i n c l i d f i n i a l s a o f a f o t y e D 3 , 20 2, h b l a i n U i t S d l l a s l e l y f o t c i e o f t r . W h a i t t t l a i o , a i n o o i n i o , t c l i d f i n i a l s e i n N T i w d l l a h b t l a i n i t S d l l a o t b i s s f o i n n 2( ) o f t n t t c l i d f i n i a l s .

C i f i e P l i c A

i p i , T i w ( R l i c o f C i n ) 7 , 20

The accompanying consolidated financial statements are intended only to present the financial position, resu lts of operations, and cash flow s in accordance w ith accou nting principles and practices generally accepted in the R epu lic of C hina and not those of any other j u risdictions. The standards, procedu res and practices to au dit su ch consolidated financial statements are those generally accepted and applied in the R epu lic of C hina.

i sda C orp orati on

onsol i dated B al ance S heets December 31, 2011 and 2012 ressed i n thou sands of New T ai w an dol l ars and U dol l ars)

			2011		2012	2012
		ssets	N N
rrent assets
		2 4 2 � 22 4 2 2 4
		- - �			-		-
		4 4 4 2 4 4
			2 2		2 24		4
					444		2
		� 4 22 4 4 24 2 2
		- 2			-		-
		� 2 4 44 ota c rrent assets 4 4 42 2 4 24
	on -term n estments
		42 4 4 4 2 - - � - 2 2 2 2 2 2 � - 24 4
		ota on -term n estments	4 4
	ro erty, ant and e ment
			4 2		2
		4 4 4			44 44		4 2
		4 2 2 24 2 2 2 2
		22 2 2 2 4
			4 4		4		4 4
		2			4
			4 44		44 4		24
				)	42	)	4 )
			2 )		2 )		4 4	)
		Net ro erty, ant and e ment	2 2 2		2 4		4
	ntan b e assets 2 4 4 2 ther assets
		2			2
							2
		2			22		2
		� -	4 2				224
		ota other assets	2 2		2 2 22
		ota assets	3,1 , 2		,3 2, 1		2, 2,200

(Note� l a ti on of New T i w d ol l a a ou ts i n to U . S . d ol l a a ou ts i s i n l u ed i n th e c on ol i d ted f i n i a l s ta tem en ts ol el y f or th e c on en i en e of th e r ea er , u i n th e n oon b i n r te of th e F ed er l R es er e B i n New Y or on D ec em er 3 , , of NT . 0 to U u i f or l y f or a l l th e f i n i a l s ta tem en ts a ou ts . )

i sda C orp orati on onsol i dated B al ance S heets ( conti nu ed) December 31, 2011 and 2012 ressed i n thou sands of New T ai w an dol l ars and U dol l ars)

			2011		2012	2012	2012
		ab t es and toc ho ders ty	N N
rrent ab t es
		- 4 4 224			2 2
		� 2			2 2
		4 2 2 4 2
		4			2		2
		42 2			4 2
			2		-		-
		- 2 2 2 4
		ota c rrent ab t es	4		4		4 2
	on -term debt 2 4 224 2 2 ther ab t es
			4				42
		- - � - 2 4 � - 4 444 2 2 ota other ab t es 2 2 2 2
	ota ab t es 4 2 22 toc ho ders e ty 2 2 4 2
			2 -				-
			2 -				-
			2 2 2 )		4 2 2 )		4	)
			4 4		2 44		2
		- -		)		)	2 4	)
		2 2		)		)	2 )
	2 24 2 2 4 4 2 2 ota stoc ho ders e ty 24 4 2 44 4 omm tments and cont n enc es
		ota ab t es and stoc ho ders e ty	3,1 , 2		,3 2, 1		2, 2,200

i sda C orp orati on onsol i dated S tatements of O erati ons For the years ended December 31, 2011 and 2012 ressed i n thou sands of New T ai w an dol l ars and U dol l ars, ex cep t earni ng s p er share)

						2	2				2 2

					)						)

								)			)
	) ) ) )
						)			)
) ) -


		-
	) ) ) )
								)		-		-
							)				)
							)		)
								)			)
								)			)
) ) ) ) ) )

							)			-		-
2 ) 2 2 ) 2
) ) ) ) 2 ) 2 2 ) 2
				)
						)				)			)
						)			-			-
			) 2 ) )

te � l a ti o o f N T i w d l l a a ts i n to U . S . d l l a a ts i s i n l u i n th c l i d te f i n i a l s ta te ts s l e l y f o th c i e o f th , u i n th n b i n r te o f th F l R B i n N Y o D 3 1, 2 12 , o f N . 0 to U 1 u i f o l y f o a l l th f i n i a l ta te ts a ts . )

Qisda Corporation Consol idate d S tate nts of Ch ang s in S toc ol de rs’ E ity or th y ars e nde d D r 3 , 2 and 2 pre sse d in th ou sands of N T aiw an dol l ars)

						Capital					tai a i		i C		ali	ali
				C t		pl al p ial					lat i it		a lati t t		aila l - i a ial	- al t		a t		i it t t		tal

		ala a a a							-	-

					-		-	-			-						-		-		-		-
					-		-		-					-			-		-		-		-
			- - - - - - - - - - - - - - -																				-
		- - - - - - - - - - - - - - - - - -
		- - - - - - - - - - - - - -
		-					-		-	-		-		-			-				-

-							-		-	-		-		-					-
					-		-		-	-	-						-		-
		ala a

					-		-							-			-		-		-		-
					-		-		-					-			-		-		-		-
		- -			-		-		-	-		-		-					-		-
					-		-		-	-		-		-			-		-
			-				-			-		-		-			-		-
		- - - - - - - - - - - - - - -

	- - - - - - - - - - - - - -
		ala a							-	-

D i r ’ r i o o f $ , 2 a e l o b o f $ , 0 f o 2 h b d i n t 2 n i n

� l a i o o f N T i w d l l a a i n U . S . d l l a a i s i n l u i n t c l i d f i n i a l s s l e l y f o t c i e o f t r , u i n t n b i n r o f t F l R B i n Y o D 3 , 2 , o f N . 0 t U u i f o l y f o a l l t f i n i a l s a . )

Qisda Corporation Consol idate d S tate nts of Cash F l ow s or th y ars e nde d D r 3 , 2 and 2 pre sse d in th ou sands of N T aiw an dol l ars and U dol l ars)

									2012









- -
	-					-					-



�

	Net cash provided by (used i ) operati activities						)
ash o		s ro	i vesti activities
			- -

			-		)				)	)
-
						)			)	)

			)					)			)
					)				)	)
		- -					)	-			-
			-						)		)
	Net cash used i i vesti activities					)			)		)
ash o		s ro	i a ci activities
- - ) )
- - ) ) )

						)		-			-
						)		)		)
	Net cash provided by (used i ) i a			ci activities		)					)
ect o		e cha	e rate cha es				)		)			)
Net i crease (decrease) i cash a d cash e uiva e ts						)						)
ash a d cash e uiva e ts at be i i o year ash a d cash e uiva e ts at e d o year
upp e e ta disc osure o cash o i or atio

upp e e ta disc osure o o -cash i vesti a d i a cia
activities
- - ( ) - -
( ) ( ) (												)

� l a i o o f N T i w d l l a a i n U . S . d l l a a i s i n l u i n t c l i d f i n i a l s s l e l y f o t c i e o f r , u i n t n b i n r o f t F l R B i n N Y o D 3 , 2 , o f N . 0 t U u i f o l y f o a l l t f i n i a l s a . )

Qisda F ac t S

Qisda Fact Sheet

Founded
	on
e enue	o e onso d ed e enue o on )
n	ee
es den	He Hu n
odu o o o	`�` s s s s ” ” W s s W`�` W`�` ” W`�` ” W`�` ” W`�` W`�` ”W`�` ”W`�` ”W ss s s s s s s - s s `�` s `�` s s `�` s s `�` s `�` `�` o e o s s� s� s� s `�` e `�` - n- ne s ”`�` ”`�` ” `�` n e es s s s s s s -s s -s s s s s - s `�` o e o un on e es - - s ss s W s s `�` u o o e n o n en e es e ed s s s W `�` edded s e o u ons s s s `�` He e o u ons s s en e `�` s
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o o o ees	s
o e ons	s s

==> picture [122 x 49] intentionally omitted <==

Qisda.com

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Qisda — Annual Report 2012

52023_rns_2013-06-28_84ad51c6-b1ff-4929-a0c6-6338058a8213.pdf

Table of Contents

Contac t I nfor

ati on

QISDA CORPORATION

Headquarters / Taoyuan Plant

STR & TR SF A T

PE T A TA TS

STO R TI S C TA TS

STI STO E HA L STI

SD O THE I TE T

essag e to ou S ar eh old er s

ear esteem ed Q i sda shareholders,

si ness O er ati on R ev i ew

Business Description

i n S

Ov i e o f Op i o

Pr Of i n

i e o O i o

Cu St a Tr i n De l o o t In

Ov i e o f Su l y Ch i n

Tr i n De l o a M Co i t i o o t Co ’ s Pr

& D l o

Te l o i e i n De l o

i g l i g i n Fu Te l o i c l De l o

- a S -t B i n D l o P l a

Sh Te B i n De l o Pl a

roj e tor:

Mob il e De ic :

Te B i n De l o Pl a

LCD Monitor:

roj e tor:

Mob il e De ic :

ark ets and S al es

A l y i s

j o Sa l e M

Sh

St i e Fo l a B o Fu De , G , Co i t i v Ni c , a l l a Po i t i v a Ne i v Fa i n M Tr LCD Monitor:

roj e tor:

Mob il e De ic :

A l i c i o a M P

Pr Ap l i c i o

Pr

i e o R M i a l S l y

Cor or ate G ov er nanc e

orporate G ov ernance S tructure

rim R ol es of G ov ernance E ntities ary

o D i r

i t C i t

i o C i t

Board of Directors

M

i a l R l u i o A b B M i n

Creating Value for Shareholders and iv ing B ac to the Com unity is an I ntegral P art of Q isda Value

E i v O i c

roup O rg aniz ation

O i z i o C

i l i a C i e

is Corp ora tion

Company Financials

Capital and Shares

Shares Type and Shares Outstanding

Ow nershi and D istrib utio n o Shares p

et W rth, E arning, D iv idends and M ark et P ric e P er Share

iv idend P l ic y

st R ec ent 5 -year F inanc ial A nal ysis

Attachment 1 � nd ep end ent Au i to ’ s R ep t & Au i ted F i nanci al S tatements

i s C i o

i s C i o -c l i d B l a S ( i n ) 3 , 2 a 2 ( i n t o N Ta i w d l l a a U d l l a )

i s C i o -c l i d S o O i o t y e D 3 , 2 a 2 i n t o f N Ta i w d l l a a U d l l a e e i n p s )

Qisda Corporation on-c onsol idate d S tate nts of Ch ang s in S toc ol de rs’ E ity or th y ars e nde d D r 3 , 2 and 2 pre sse d in th ou sands of N T aiw an dol l ars)

Qisda Corporation on-c onsol idate d S tate nts of Cash F l ow s For the years ended December 31, 2011 and 2012 ressed i n thou sands of New T ai w an dol l ars and U dol l ars)

ndep endent A di tors’ R ep ort

i sda C orp orati on

i sda C orp orati on onsol i dated B al ance S heets ( conti nu ed) December 31, 2011 and 2012 ressed i n thou sands of New T ai w an dol l ars and U dol l ars)

i sda C orp orati on onsol i dated S tatements of O erati ons For the years ended December 31, 2011 and 2012 ressed i n thou sands of New T ai w an dol l ars and U dol l ars, ex cep t earni ng s p er share)

Qisda Corporation Consol idate d S tate nts of Ch ang s in S toc ol de rs’ E ity or th y ars e nde d D r 3 , 2 and 2 pre sse d in th ou sands of N T aiw an dol l ars)

Qisda Corporation Consol idate d S tate nts of Cash F l ow s or th y ars e nde d D r 3 , 2 and 2 pre sse d in th ou sands of N T aiw an dol l ars and U dol l ars)

Qisda Annual Report 2012