Page 11 - 2014 CPT Corporate Social Responsibility Report
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Chunghwa Picture Tubes Corporate Social Responsibility Report

Company Profile

       Small-size products: Smartphones have replaced the             Financial Performance
regular cell phones in the market. CPT seizes this opportunity to
continuously upgrade the development of smartphone products,                  CPT is dedicated to securing the market of TFT-LCD. We improved our profitability from optimized
enhance FFS products and expand production of FFS integrated with      control of stock and costs and getting to know customers in different regions and industries, striving to bring
On-Cell touch-control products. The market continues to demand         our customers the products and services they expect through various business models. CPT lays out clear
higher resolutions and speedy mass-production. In response, CPT        directions and works with our employees hand-in-hand to achieve the ultimate goals.
launched its 6th generation production lines into production of
high-specification smartphone products (HD and higher) and 4.5                The government administers financial aid programs that provide tax reductions and exemptions,
generation production lines for special/ultra-specification (350ppi    incentives, and subsidies for industries on an annual basis as required in accordance with economic,
and higher) smartphone products and brought in Rainbow RGB             industrial, and monetary policies to facilitate the promotion and implementation of relevant policies.
technology to improve colour saturation. CPT is planning to launch     CPT interacts and cooperates with government departments on a regular basis and strives to gain a better
In-Cell and ultra-narrow frame (under 0.1mm) products in the           understanding of relevant policies and programs. CPT submits applications for applicable policies and
second half of 2015 to meet the demands for light-weight, high-        programs in accordance with relevant regulations. An efficient use of government resources helps alleviate
resolution, energy-efficient and differentiated products.              the financial burden of compliance with government policies and enhance the industrial competitiveness of
                                                                       CPT and enables it to earn profits and fulfill its corporate social responsibility.
       Medium-size products: The tablet PC market is expected to
stay on par in 2015. However, larger display models are expected      Chart of associated enterprises                                                                                                                                      CPT operations are managed and controlled by Tatung
to hit the market. This is favorable to the display manufacturers in                                                                                                                                                                Co. (shareholding ratio of 8.46%). In 2014, the CPT plants
terms of the utilization of production capacity. Moving along the                                                        Chunghwa Picture                                                                                           in Taiwan were exempt from taxes due to their losses and did
market trend, CPT takes a further step to upgrade product resolution                                                     Tubes, Co., Ltd.                                                                                           not receive any financial assistance from the government.
and develop larger-size products, in response to the rising demands                                                                                                                                                                 The three Mainland Chinese plants (Fujian Huaguan
from the emerging markets and markets of education and business       41.03%                             100.00%                        100.00%             53.67%            100.00%           Kunshan Giantplus Optronics         Optoelectronics, CPT Display Technology (Fujian), CPTF
(2-in-1 tablet PCs) applications. Through ODM and solution                                                                                                                    100.00%           Display Technology Co., Ltd.        Visual Display (Fuzhou)) received real estate tax exemptions
providers, we seek to expand the market and create higher demand.                                        Bermuda                  Giantplus Xuheng          Giantplus                                                               from local governments amounting to 5,646,900 RMB. CPT
At the end of third quarter 2014, CPT successfully launched the                                        CPT Co., Ltd.             Investment Company  Technology Co., Ltd.                               Shenzhen Giantplus          TPV Optical (Fujian) Co., Ltd. and CPTF Visual Display
mass-production of 6.5” On-Cell FFS products. We plan to launch 7,                                                                                                                              Optoelectronics Display Co., Ltd.   (Fuzhou) Ltd. enjoy preferred tax terns in China; total tax-
8 and 10” On-Cell products for table PC in 2015.                                                                                                           100.00%                                                                  saving comes to RMB 6,935,650,000.
                                                                                                                                                                              100.00%           Kunshan Giantplus Optoelectronics
       Automotive display: Development of electronic automotive                                                                                      Giantplus (Samoa)                                  Technology Co., Ltd.               The consolidated net income of the CPT Group in 2014
applications drove substantial growth of flat-panels for terminal                                                                                    Holding Co., Ltd.                                                              is NT$ 56.39 billion. A total of 1.763 million pieces of large
devices (e.g. GPS, dashboard and LCD display for in-car                                                                                                                                                                             TFT panels and 455 million pieces of small to medium size
entertainment). Plus the continuously upgrading safety features,                                                                                           100.00%                                                                  panels were shipped in 2014. Although the year-end balance
the demand for automotive display panels has been growing in                                                                                                                                                                        did not register profits, the combined after-tax net loss shrank
double-digits. Benefiting from the recovery in the economies of                                                                                      Giantplus Holding                                                              to NT$ 3.66 billion, which registers a 13% reduction compared
the European countries and the US and dropping oil prices, the                                                                                               L.L.C.                                                                 to the after-tax net loss of NT$ 4.19 billion recorded in 2013.
automotive market is expected to grow. Market survey institutions
projected that the demand for automotive display panels will reach    58.97%          25.00%           100.00%           63.63%                  5.00%        100.00%                           100.00%              13.05%                In 2014, CPT continues to develop high-value products,
94 million. CPT will continue to reinforce its automotive display                                                                                                                                                                   focusing on four product categories: smart phone, tablet
products, targeting four areas: specifications (e.g. resolution,        Malaysia                        British Virgin   CPT Technology                 Malaysia Chunghwa                            4 investment    CPT Display    PC, automotive display panels and touch screen panels. The
contrast, faster low-temperature reaction time and high NTSC),        CPT(Labuan)                      Islands Kingston  (Labuan) Co., Ltd.              Picture Tubes Ltd.                     companies including  Technology     TFT display market is expecting growth in 2015 as larger
quality, technology and total solution, and expand the “Before                                                                                                                                  Dalemont Investment  (Fujian) Ltd.  size smart phones with high-definition displays are getting
Market”. CPT continues to develop the market for FFS products. In       Co., Ltd.       CPTF             Technology                                                                                                                 popular, demand from the emerging markets and delayed 4G
2014, the Company launched 6.95” On-Cell FFS models and plans                         Optronics          Corporation                                                                                      Ltd.                      replacement boom are likely to hit the market, and tablet PCs
to launch 8” models in 2015 in response to customer demands.                          Co., Ltd.                                                                                                                                     enlarged from 7” to 8”, 10.1” and larger sizes, as well as fast
                                                                                                                                                                                                                                    development of smart cars, are likely to drive the penetration
       Industrial control and other applications: The demand for                                                                 100.00%                                        100.00%                                             rate of TFT display panels. CPT’s goal for 2015 is set for
products tailored for industrial control and other applications                                                                                                            Shenzhen CPT
continues to rise due to industrial automation and the development                    51.00%       61.73% 13.46%                                                                                         12.30%
of “the internet of things”. CPT continues to develop customization
services and establishes long-term partnerships with our customers                                       CPTF Visual     CPT Technology  75.00%      CPT TPV                     Technology     Chunghwa Picture     11.95%
at the current stage, the product lines under 11” are complete. CPT                                    Display (Fuzhou)                                                      (Group) Co., Ltd.  Tubes (Wujiang)
is planning to develop standard products 12” and larger to expand                  Optoelectronic      Ltd. (Group) Co., Ltd.                    (Optical) Co., Ltd.
the market and optimize product values and profitability.                                Co.                                                                          75.00%                            Ltd.


                                                                                              100.00%  CPTF (HK)                                                      75.00%
                                                                              75.00%                                                             Shenzhen CPT
                                                                                                                         3.86% 74.66%

                                                                                                                                                 (Group) Co., Ltd.



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