HTC Corp.

Company Background

HTC, a leading Taiwanese smartphone maker, is well-known for its technological chops. When the global smartphone market first began to swell, HTC was using high-end models to take bigger slices of the global pie. In 2011, HTC was at its peak in terms of earnings. It controlled 8.8% of the global smartphone market in terms of shipments, becoming the world's fifth-largest smartphone maker, according to U.S. market researcher IDC.

HTC was founded in 1997 by Wang Cher, a daughter of Wang Yung-ching, the founder of Formosa Plastics. HTC started off as a contract manufacturer of personal digital assistants, which were a thing in the late 1990s. HTC jumped into the smartphone game in 2007. In the following year, the company launched the world's first smartphones using Google's Android operating system. It created a sales network by partnering with telecommunications companies around the globe.

Since 2012, however, Samsung Electronics of South Korea has rapidly expanded its market share, significantly cutting into HTC's smartphone sales. Moreover, the Taiwanese company was slow to enter China's smartphone market. Insufficient branding and marketing has also hurt HTC.

Sales of its latest model, the HTC One M9, released in March 2015, have been lackluster. As a result, the company announced in August plans to cut 15% of its global workforce of 15,000. The company for years focused on production at its own Taiwanese factories but has begun to contract out as part of its cost-cutting efforts.

In 2014, HTC released the Re. The small point-and-shoot camera, which shoots stills and video and streams the images to a smartphone, exemplifies how the company seeks to diversify into other businesses and be less reliant on smartphones.

Business Summary

HTC Corp. engages in the designing, manufacturing, assembling, processing, and selling smart mobile and virtual reality devices and after-sales service. It offers mobile phones based on Android and Windows Phone operating systems and also provides relevant technical and after-sales service support for its products. The company was founded by Hsiueh Hong Wang and Huo Tu Cho on May 15, 1997 and is headquartered in Taoyuan, Taiwan.

Financial Highlights

Dec 2022	TWD	USD
Revenue	4,408.82M	147.88M
Gross Profit	1,494.75M	50.13M
Operating income	-4,299.36M	-144.21M
Income before tax	-3,390.55M	-113.72M
Net income	-3,411.78M	-114.43M
EBITDA	-4,025.71M	-135.03M
Diluted EPS	-4.12	-0.13
Dividends Per Share	0	0
Total Assets	46,440.23M	1,510.96M
Total liabilities	20,881.07M	679.37M
Total equity	25,559.16M	831.58M
Operating cash flow	-3,758.60M	-126.07M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	23,740.61M	10,014.96M	5,805.70M	5,253.27M	4,408.82M
Gross Profit	-1,077.76M	377.81M	1,082.46M	1,289.14M	1,494.75M
Operating income	-13,963.61M	-9,850.25M	-6,391.39M	-4,096.43M	-4,299.36M
Income before tax	17,264.56M	-9,368.70M	-6,018.33M	-3,002.26M	-3,390.55M
Net income	12,068.20M	-9,358.07M	-5,949.94M	-3,073.13M	-3,411.78M
EBITDA	-12,280.96M	-8,147.23M	-5,859.86M	-3,709.36M	-4,025.71M
Diluted EPS	14.49	-11.42	-7.26	-3.74	-4.12
Dividends Per Share	0.38	0	0	0	0
Total Assets	67,710.81M	52,734.82M	45,066.33M	44,184.95M	46,440.23M
Total liabilities	22,490.95M	17,737.54M	15,112.76M	16,962.05M	20,881.07M
Total equity	45,168.83M	34,853.77M	29,892.53M	27,222.90M	25,559.16M
Operating cash flow	-9,484.58M	-9,221.84M	-7,346.59M	-4,541.58M	-3,758.60M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	787.30M	323.97M	197.17M	188.07M	147.88M
Gross Profit	-35.74M	12.22M	36.76M	46.15M	50.13M
Operating income	-463.06M	-318.64M	-217.06M	-146.65M	-144.21M
Income before tax	572.53M	-303.06M	-204.39M	-107.48M	-113.72M
Net income	400.21M	-302.72M	-202.07M	-110.02M	-114.43M
EBITDA	-407.26M	-263.55M	-199.01M	-132.80M	-135.03M
Diluted EPS	0.48	-0.36	-0.24	-0.13	-0.13
Dividends Per Share	0.01	0	0	0	0
Total Assets	2,202.90M	1,759.17M	1,603.89M	1,597.02M	1,510.96M
Total liabilities	731.72M	591.70M	537.85M	613.07M	679.37M
Total equity	1,469.52M	1,162.68M	1,063.86M	983.94M	831.58M
Operating cash flow	-314.53M	-298.31M	-249.50M	-162.59M	-126.07M

Valuation Measures

Dec 2022
PER	--
ROA	-7.52%
ROE	-12.92%
Operating margin	-97.51%
Profit margin	-77.38%

Management

Chairman & General Manager: Hsiueh Hong Wang
Chief Financial & Accounting Officer: Tao Pang Shen
Senior Director: Maggie Tseng
Chief Technology Officer: Wan Hsien Liu
Senior Vice President: Adrian Tung

Shareholders

WANG HSIUEH HONG (3.8%)
The Vanguard Group, Inc. (3.2%)
CHEN WEN CHI (2.6%)
BlackRock Fund Advisors (1.1%)
Norges Bank Investment Management (1.1%)
Dimensional Fund Advisors LP (0.6%)
Neuberger Berman Investment Advisers LLC (0.3%)
Bessemer Investment Management LLC (0.3%)
SSgA Funds Management, Inc. (0.2%)
BlackRock Advisors (UK) Ltd. (0.2%)

Contact Details

Website:http://www.htc.com
Address: No. 23, Xinghua Road, Taoyuan District, Taoyuan, 330, Taiwan
Phone: +886.3.375.3252

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Competitors

Meta Platforms Inc. Class A
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Last Updated on 21 Sep, 2023