Leadtek Research, Taiwan, annual report 2024

2. I. Spokesperson of the Company
Name : Michael Yang
Title: Special Assistant of Chairman
TEL: (02)8226-5800 ext. 201
Email: michaelyang@leadtek.com.tw
Deputy Spokesperson of the Company
Name: Thomas Chen
Title: Senior Finance Manager
TEL: (02)8226-5800 ext. 870
Email: thomas@leadtek.com.tw
II. Addresses and Telephone Number of the Company
Head Office: 18F, No.166, Jian-Yi Road, Zhonghe Dist. New Taipei City,
Taiwan
TEL: (02)8226-5800
Plant: 2F, No.4, Alley11, Lane327, Sec.2, Chung-Shan Road, Zhonghe Dist.,
New Taipei City, Taiwan
TEL: (02)8226-5800
III. Stock Transfer Agent
Name: Taishin Securities Co., Ltd
Address: B1 No.96 Jianguo North Road, Sec. 1, Taipei City, Taiwan
Website: http：//www.tssco.com.tw
TEL: (02)2504-8125
IV. Attesting Certified Public Accountants (CPAs) for the Most
Recent Financial Statements
Name: CPA Chien, Szu-Chuan and CPA Kuo, Kuan-Ying
CPA Firm: KPMG
Address: 68F, No.7, Sec.5, Xinyi Road, Taipei City Taiwan
Website: http：//www.kpmg.com.tw
TEL: (02)8101-6666
V. The Name of Any Exchanges Where the Company’s Securities
are Traded Offshore and the Method by Which to Access
Information on the Offshore Securities: None
VI. Company Website: http：//www.leadtek.com.tw

3. Table of Contents
Page
One. Letter to Shareholders..................................................................................1
Two. Organizational Profile....................................................................................
I. Date of establishment............................................................................4
II. Company history ...................................................................................4
Three. Corporate Governance Report .....................................................................9
I. Organization ..........................................................................................9
II. Background information of Directors, President, Vice Presidents,
Assistant Vice President and the heads of various departments and
branches...............................................................................................12
III. Remuneration for directors, the president, and vice presidents in
the most recent accounting year..........................................................20
IV. Corporate Governance .......................................................................25
V. Disclosure of CPA service fee.............................................................60
VI. Change of Accountants........................................................................61
VII. Disclose the name, job title, and term of service of the chairman,
president, or chief financial or accounting officer of the company
who has worked for the CPA’s firm or its affiliates in the most
recent year ...........................................................................................63
VIII. Transfer of shares and change in stock ledge of directors, supervisors,
officers, and shareholders holding over 10% of shares in the most
recent year and by the date of report publication................................63
IX. Information of the top ten shareholders who are related parties or
spouses relatives within the 2nd
degree of kinship to each other.........65
X. Shareholding of the same investee of the company and its
directors, supervisors, officers, and companies under direct or
indirect control, and the consolidated shareholding of them ..............66

4. Four. Funding Status ...........................................................................................67
I. Capital and outstanding shares............................................................67
II. Information of corporation bonds .......................................................72
III. Information of preferred shares...........................................................72
IV. Information of global depositary receipts (GDR) ...............................72
V. Information of certificates of employee stock option .........................72
VI. Information of restricted stock awards................................................72
VII. Issuance of new shares in connection with M&A or with
acquisitions of shares of other companies...........................................72
VIII. Performance of capital utilization plan ...............................................72
Five. Business Overview ....................................................................................73
I. Operation.............................................................................................73
II. Market and sale overview....................................................................80
III. Employees ...........................................................................................94
IV. Contribution to environmental protection...........................................94
V. Labor –management relationship........................................................94
VI. Cybersecurity Management.................................................................96
VII. Important contract ...............................................................................99
Six. Financial Highlights.................................................................................100
I. Summary statement of financial positon and statement of
comprehensive income of the past five years ...................................100
II. Financial analysis of the past five years............................................104
III. Audit report of the audit committee in the most recent year ............108
IV. Financial statements audited by the CPAs in the most recent year...109
V. Parent company only financial statements audited by the CPAs in
the most recent year...........................................................................188
VI. Impact on the company’s finance of financial difficulties, if any,
of the company and affiliates in the most recent year and by the
date of report publication ..................................................................261

5. Seven. Review and analysis of the financial position and operational
performance and risk management..........................................................261
I. Financial position ..............................................................................261
II. Financial performance.......................................................................262
III. Cash flow...........................................................................................263
IV. Influence of major capital spending on financial position and
operation in the most recent year ......................................................264
V. Re-investment policies, main causes of gains/losses, and
improvement plans in the most recent year, and investment plans
in the next year ..................................................................................264
VI. Risk matters required for analysis and assessment in the most
recent year and by the date of report publication..............................264
VII. Other important matters.....................................................................267
Eight. Special Remarks.......................................................................................268
I. Information of affiliates.....................................................................268
II. Private placement of securities in the most recent year and by the
date of report publication ..................................................................275
III. Holding or disposal of the Company’s shares by subsidiaries in
the most recent year and by the date of report publication ...............275
IV. Other supplementary information .....................................................275
V. Matters with significant impact on equity or stock prices as
stipulated in Article 36, paragraph 2, subparagraph 2, Securities
and Exchange Act in the most recent year and by the date of
report publication ..............................................................................275

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38

44. Note 1: CPA Independency and Competency Evaluation Sheet
Evaluation Item Yes No
Whether it meets the
required
independence and
competence
1.The CPA did not serve as directors and supervisors of
the Company
Ⅴ Ⅴ
2.The CPA is not a shareholder of the Company Ⅴ Ⅴ
3.The CPA does not work part-time in the Company or
is engaged in regular work, and is paid
Ⅴ Ⅴ
4.The CPA has no significant financial interest in the
Company
Ⅴ Ⅴ
5.The CPA has no borrowing from or lending to the
Company
Ⅴ Ⅴ
6.The CPA is not involved in the management function
of the Company’s decision making
Ⅴ Ⅴ
7.The CPA has not served in the Company in the first
two years of practicing
Ⅴ Ⅴ
8.Receipt of a declaration of independence by the CPA Ⅴ Ⅴ
9.The CPA has not provided the Company’s audit
certification service for 7 consecutive years
Ⅴ Ⅴ
10.There are no interaction issues between the CPAs and
management, governance units, and the internal audit
supervisor.
Ⅴ Ⅴ
11.The quality of audit and tax services meets the
requirements in a timely and effective manner.
Ⅴ Ⅴ
12.The Company’s financial report has not been
litigated or corrected by the competent authority.
Ⅴ Ⅴ
13.Acquire the AQIs and perform the assessment:
(1)Professional indicator(audit experience, training
hours, turnover rate, and professional support) –
sufficient
(2)AQI indicator (CPA’s load, engagement in audits,
EQC recheck status, and quality control support
support ability) – sufficient
(3)Independence (proportion of non-audit services and
customer familiarity) – no abnormal situation
(4)Supervision (defects found in external inspections
and disposition, and the competent authority’s
reminder for improvement) – no abnormal situation
Ⅴ Ⅴ
Ⅴ Ⅴ
39

45. Note 2 Continuing education of directors in 2023 and by the date of report publication:
Title Name
Course date
Organizer Course name
Train
ing
hours
of
conti
nuing
educa
tion
From to
Chairman LuKun-Shan
2023//9/20 2023//9/20
Taiwan
Insurance
Institute
ESG Sustainable
Development Trends
and Implementation of
Responsible Investmen
3.0
6.0
2023/11/9 2023/11/9
Taiwan
Academy of
Banking and
Finance
Analysis of Important
Practical Judgments on
Corporate Governance
3.0
Director LiangJian-Fa 2024/3/28 2024/3/28
Corporate
Operating and
Sustainable
Development
Associate
Explanation and case
introduction of
directors and
supervisors’
responsibilities under
corporate governance
3.0 3.0
Director LiangJian-Da 2024/3/28 2024/3/28
Corporate
Operating and
Sustainable
Development
Associate
Explanation and case
introduction of
directors and
supervisors’
responsibilities under
corporate governance
3.0 3.0
Director
Huang
Chin-Ming
2023/5/23 2023/5/23
Taiwan
Academy of
Banking and
Finance
Corporate Governance
Lecture - Review and
Analysis of Financial
Reports for Directors
and Supervisors
3.0
6.0
2023/9/4 2023/9/4
Taiwan
Academy of
Banking and
Finance
The 14th Taipei
Corporate Governance
Forum
3.0
Director
Hu
Chiu-Chiang
2023/2/14 2023/2/14
Taiwan
Corporate
Governance
Association
The new look of
corporate governance
under the ESG trend
3.0
12.0
2023/3/14 2023/3/14
Taiwan
Corporate
Governance
Association
Risks and
opportunities of
climate change trends
to business operations
3.0
2023/5/8 2023/5/8
Securities
Futures Institute
The latest practical
analysis of business
secrets and
management risks of
directors and
supervisors
3.0
2023/5/8 2023/5/8
Securities
Futures Institute
Director’s
Responsibilities in
Corporate Mergers and
Acquisitions
3.0
Independe
ntDirector
HoYao-Hung
2023/4/13 2023/4/13
Taiwan Institute
of Directors
2023 KPMG
Leadership Academy
Forum-Business
Opportunities and
Challenges under the
Net Zero Boom
3.0
9.0
2023/6/2 2023/6/2
Chinese National
Associate of
Industry and
Commerce
2023 Taishin Net Zero
Power Summit Forum
3.0
2023/8/22 2023/8/22 Taiwan In the era of digital 3.0
40

46. Title Name
Course date
Organizer Course name
Train
ing
hours
of
conti
nuing
educa
tion
From to
Corporate
Governance
Association
economy, how can
companies innovate
and achieve
breakthroughs in
profitability?
Independe
ntDirector
Shen
An-Shih
2024/3/14 2024/3/14
Taiwan
Independent
Director
Associate
How the board of
directors controls
corporate financial
risks and case analysis
3.0 3.0
Independe
ntDirector
Liu Cheng
2023/12/5 2023/12/5
Taiwan
Corporate
Governance
Association
2024 Global Economic
Outlook and Industrial
Trends
3.0
6.0
2023/12/26 2023/12/26
Taiwan
Corporate
Governance
Association
Circular economic
benefits and
sustainable financial
business opportunities
3.0
2024/1/12 2024/1/12
Taiwan
Corporate
Governance
Association
Corporate carbon
management thinking
after the passage of the
Climate Change
Response Act
3.0
Independe
ntDirector
Liu Ju-Chi 2024/11/9 2024/11/9
Taiwan
Academy of
Banking and
Finance
Analysis of Important
Practical Judgments on
Corporate Governance
3.0 3.0
41

47. (IV)Composition, responsibility, and operations of the remuneration committee:
1.Data of members of the Remuneration Committee
Identity Name
Professional
Qualifications and
Experience
Status of
Independence
Number of
other public
companies in
which
concurrently
serves as
Remuneration
Committee
member
Independent
Director
Ho Yao-
Hung
Please refer to the Data of Directors
in p. 15.
2
Independent
Director
Shen
An-Shih
Please refer to the Data of Directors
in p. 15.
-
Independent
Director
Liu Cheng Please refer to the Data of Directors
in p. 15
-
2. Operations of the Remuneration Committee
(1) The Company's Remuneration Committee is seated by 3 members.
(2) The term of the 4th Remuneration Committee: From August 1, 2023
to the end of the term of the 13th Board.
A total of 2 Remuneration Committee meetings were held in 2023,
and the attendance of committee members is as follows:
Title Name
Actual
attendance
count
Attendance
by proxy
Percentage
of actual
attendance
(%)
Remarks
Convener Ho Yao- Hung 2 0 100% -
Committee
member
Shen An-Shih 2 0 100% -
Committee
member
Liu Cheng 2 0 100% -
Other remarks:
I. If a proposal of the remuneration committee is rejected or amended at a board
meeting, state the date and session of the meeting, the content of the concerned
proposal, the resolutions made at the board meeting, and the company’s response
to opinions of the remuneration committee’s opinions (if salary and
remuneration approved at the board meeting are better than the recommendation
of the remuneration committee, state the differences and their causes): None.
II. When there are documented objections or qualified opinions to the resolution
made by a committee member at the remuneration committee meeting, state the
date and session of the committee meeting, the content of the concerned
proposal, the opinions of all committee members, and the response to opinions
of members: None.
42

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