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Registered number: 04826012










HTC EUROPE CO. LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
HTC EUROPE CO. LIMITED
 
 
COMPANY INFORMATION


Directors
Chia-Te Lu 
Yuh-Ta Chang 




Company secretary
Gaynor De Wit



Registered number
04826012



Registered office
Salamanca
Wellington Street

Slough

Berkshire

SL1 1YP




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
HTC EUROPE CO. LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 10
Statement of Comprehensive Income
11
Balance Sheet
12
Statement of Changes in Equity
13
Notes to the Financial Statements
14 - 31


 
HTC EUROPE CO. LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their report and financial statements for the year ended 31 December 2023.

Business review
 
The principal activity of the Company continued to be that of provision of sales and marketing support services to its customers. 2023 proved a challenging year for the global economy. Europe in particular saw a sharp slowdown, creating a more challenging business environment, which was reflected in the Company’s performance over the year. 
Turnover amounted to £7,625,204 (2022: £6,523,098). The company made a loss before taxation of £12,837,766 (2022: profit of £20,699,834) largely attributable to the foreign exchange differences during the year and on the translation of the Company's cash and bank balances at the year end being an £8.0m loss in 2023 compared to £17.5m profit during 2022. In addition the Company impaired the carrying value £14.3m of some of its investments in subsidiaries. These losses were offset partly by interest earned during the year of £8.1m (2022: £2.4m).
HTC remained focused on delivering cutting edge innovation in 2023. The latest VR/MR headset, the VIVE XR Elite, received numerous awards, illustrating how the clever design, high specification and superior ergonomics impressed media and industry alike. 2023 also saw the VIVE Focus 3 launched into space by the European Space Agency and NASA to provide mental health and fitness applications for the astronauts heading to the International Space Station; a new frontier for VR and for HTC.
HTC continued to work on delivering more true-to-life virtual collaboration and improved human connections in VR. This move towards greater realism online is important for the wider adoption of VIVERSE, HTC’s total solution to help customers fully realise immersive digital transformations and applications across B2C and B2B markets. Built on our advanced XR technologies, VIVERSE is HTC’s secure, fully device-agnostic platform for the next generation of the internet that brings people together to connect, collaborate and explore in vivid virtual worlds.
In anticipating the immersive internet, HTC stands ready to meet the challenges and develop the right technologies and products to expedite the future. The semi-autonomous business units announced in 2021 demonstrated increasing maturity of business model and leadership in their respective fields over 2023, while the parent company HTC Corporation continues to provide strategy guidance and functional support to each business, along with maintaining a strong focus on achieving sustainable efficiencies across all of its operations. This strategy is now showing returns, and we remain firm in our belief that this is the right path for growth for HTC.
Throughout our operations, HTC strives for brilliance, both in how we work and how our customers use our products. We will continue to focus on innovation, execution, and efficiency across the organisation, and by anticipating market trends and pioneering technology implementation, we believe that we are on the right path for growth. 

Page 1

 
HTC EUROPE CO. LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Operating environment

While geographical restrictions relating to the COVID-19 pandemic were completely lifted Europe-wide by the end of 2023, some aspects of the digital revolution catalysed by the pandemic have sustained, such as remote and hybrid working, requiring the adoption of virtual meetings for work, schooling and professional training, as well as reduced business travel. HTC’s VIVE VR systems and VIVERSE are well positioned to take advantage of this societal shift, as more of our lives go online to an internet that is increasingly 3D.
Over 2023, the virtual reality (VR) market has continued its steady momentum, although the overall economic slowdown across the continent significantly impacted the whole industry. However, HTC leveraged its foothold in the enterprise space, creating business-focused services and software specifically designed to enhance the experience and expedite adoption.
The immersive internet/metaverse concept gained ground throughout 2023, and the VR / AR industry quickly became the highlight of many metaverse market discussions, triggering the development of more immersive applications for both consumers and enterprise. Gartner projects that 25% of people will spend at least 1 hour per day for work, shopping, education, social, or entertainment in the metaverse in 2026.
Moreover, the continuing advancement of 5G, with its higher refresh rate displays and lower latency critical for VR, bodes well for from consumer level to large-scale commercial-level applications. The implementation of AI and big data technologies also accelerated over 2023, and HTC has been able to leverage its extensive experience in computing and networking technologies to boost the value proposition of its whole portfolio, from VR/AR devices and platforms to optimised smartphones and private 5G networks and services.

Strategic Priorities

The Company’s strategic priorities remain to provide high quality, cost effective sales, marketing and services with the aim of boosting market share and brand awareness for HTC and VIVE in the region.
Given the continued focus on innovation and the streamlining of processes and business structures, the Directors remain optimistic about the Company’s future, in line with HTC’s vision and corporate objectives.

Key Performance Indicators

2023
2022
Variance
        £
        £
Turnover

7,625,204

6,523,098

17%
 
 
(Loss)/Profit before tax

(12,837,766)

20,669,834

(162%)
 
 

Page 2

 
HTC EUROPE CO. LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
Financial management risks
The Company's financial instruments principally comprise of cash at bank, account receivables and account payables due to and from group undertakings. It is, and has been throughout the period, under review, the Company's policy that no trading in financial instruments should be undertaken. The Company has limited exposure to financial risks, which are principally price risk and credit risk.
Price risk
The Company is exposed to price risk due to normal inflation increases in the purchase price of goods and services and due to market factors affecting the price charged for its services.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
Environmental policy
HTC is committed to providing a safe working environment to its employees and complying with legal obligations under the current Health, Safety and Welfare legislations. The Company promotes health and safety, and environment awareness within the organisation and amongst its customers and suppliers.

Employees
 
HTC recognises the importance of its employees and the Company’s policy is to maintain effective two way communication and consultation on matters that affect employees. The employees are encouraged to be involved, ensuring that they are aware of the financial and operational performance of the Company through meetings and internal communications. The Company strives to provide an environment where employees continue to learn and to develop their professional expertise. This underpins sustained business growth.
The Company attaches great importance to the human rights of our workforce, and the principles of equality and anti-discrimination are at HTC’s core. We provide equal and fair employment opportunities for all employees, and HTC’s Code of Conduct is a guideline to providing high ethical standards for all employees in conducting HTC’s business activities. We adhere to all applicable laws and there is zero tolerance of any form of discrimination. 
The Company is committed to creating a culture in which diversity and equality of opportunity are promoted actively. The Company recognises the business benefits of having a diverse community of staff, and to this end is working towards building and maintaining an environment which values diversity.


This report was approved by the board and signed on its behalf.



Yuh-Ta Chang
Director
Date: 13 December 2024

Page 3

 
HTC EUROPE CO. LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £12,928,490 (2022 - profit £16,855,864).

During the year, the Company paid no dividends (2022: £nil).

Directors

The directors who served during the year were:

Tao-Pang Peter Shen (resigned 18 October 2024)
Chia-Te Lu 

After the year end, Yuh-Ta Chang was appointed as a director on 18 October 2024. 

Future developments

In 2024, we will continue to support HTC in marketing its virtual reality and smartphone product line, in particular promoting HTC’s products to enterprises who are increasingly adopting virtual reality as part of their solutions to customers or for internal training purposes. The Company continues to focus on managing operational cost and has maintained the required workforce to provide sales and marketing activities to HTC in key markets in the region.

Page 4

 
HTC EUROPE CO. LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial instruments

The Company's financial instruments and financial management risks are described in the strategic report.
The directors have agreed that the Company does not undertake derivative financial instruments for speculative purposes.

Matters covered in the Strategic Report

Relevant disclosures relating to principal risks and uncertainties, environmental policy and employees related matters are also included in the strategic report. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Simmons Gainsford LLP, the previous auditors, have transferred their audit bussiness to Sumer Auditco Limited
who will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Yuh-Ta Chang
Director
Date: 13 December 2024

Page 5

 
HTC EUROPE CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HTC EUROPE CO. LIMITED
 

Opinion


We have audited the financial statements of HTC Europe Co. Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
HTC EUROPE CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HTC EUROPE CO. LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
HTC EUROPE CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HTC EUROPE CO. LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
 
the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the Company including its management structure and control systems (including the opportunity for management to override such controls);
management's incentives and opportunities for fraudulent manipulation of the financial statements including the Company's remuneration and bonus policies and performance targets; and
the industry and environment in which it operates.
 
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.

Based on this understanding we identified the following matters as being of significance to the entity:
 
laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation;
the timing of the recognition of commercial income;
compliance with legislation relating to health and safety;
management bias in selecting accounting policies and determining estimates particularly with relation to accruals;
inappropriate journal entries;
the accounting treatment of property held; 
recoverability of debtors;
the requirement to impair investments in subsidiaries and the amount of any such impairment; and
the assumptions underlying the value of the employee share options. 
 
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and
how fraud may occur in the entity, to all engagement team members. 
 







 
Page 8

 
HTC EUROPE CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HTC EUROPE CO. LIMITED (CONTINUED)


Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
 
enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
enquiries with the same concerning any actual or potential litigation or claims;
discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; 
inspection of relevant legal correspondence;
assessment of matters reported to management and the result of the subsequent investigation;
obtaining an understanding of the relevant controls during the period;
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to accruals;
challenging assumptions used by management in the valuation of the employee share options;
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
an impairment review of fixed asset investments; 
detailed review of the use and accounting treatment of property held;
reviewing the financial statements for compliance with the relevant disclosure requirements; 
performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
reviewing the minutes of Board meetings and correspondence with HMRC;
evaluating the underlying business reasons for any unusual transactions; and
considered the implementation of controls during the year.
 
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 9

 
HTC EUROPE CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HTC EUROPE CO. LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Shilen Manek ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

13 December 2024
Page 10

 
HTC EUROPE CO. LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
7,625,204
6,523,098

Gross profit
  
7,625,204
6,523,098

Administrative expenses
  
(14,901,523)
11,326,714

Other operating income
 5 
571,906
418,749

Operating (loss)/profit
 6 
(6,704,413)
18,268,561

Amounts written off investments
  
(14,256,224)
-

Interest receivable and similar income
 9 
8,122,871
2,401,273

(Loss)/profit before tax
  
(12,837,766)
20,669,834

Tax on (loss)/profit
 10 
(90,724)
(3,813,970)

(Loss)/profit for the financial year
  
(12,928,490)
16,855,864

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 31 form part of these financial statements.

Page 11

 
HTC EUROPE CO. LIMITED
REGISTERED NUMBER: 04826012

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
12,263,081
12,512,787

Investments
 12 
70,581,425
51,649,680

  
82,844,506
64,162,467

Current assets
  

Debtors: amounts falling due within one year
 13 
11,752,766
10,287,053

Cash at bank and in hand
 14 
136,563,343
172,714,965

  
148,316,109
183,002,018

Creditors: amounts falling due within one year
 15 
(1,484,022)
(4,587,593)

Net current assets
  
 
 
146,832,087
 
 
178,414,425

Total assets less current liabilities
  
229,676,593
242,576,892

Provisions for liabilities
  

Deferred tax
 16 
(107,074)
(78,883)

  
 
 
(107,074)
 
 
(78,883)

Net assets
  
229,569,519
242,498,009


Capital and reserves
  

Called up share capital 
 17 
104,061,442
104,061,442

Profit and loss account
 18 
125,508,077
138,436,567

  
229,569,519
242,498,009


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Yuh-Ta Chang
Director
Date: 13 December 2024

The notes on pages 14 to 31 form part of these financial statements.

Page 12

 
HTC EUROPE CO. LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
104,061,442
121,580,703
225,642,145


Comprehensive income for the year

Profit for the year
-
16,855,864
16,855,864



At 1 January 2023
104,061,442
138,436,567
242,498,009


Comprehensive income for the year

Loss for the year
-
(12,928,490)
(12,928,490)


At 31 December 2023
104,061,442
125,508,077
229,569,519


The notes on pages 14 to 31 form part of these financial statements.

Page 13

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

HTC Europe Co. Limited is a company limited by shares registered in England and Wales under registration number 04826012. The principal trading address and registered office is Salamanca, Wellington Street, Slough, SL1 1YP. The principal activity of the company is the provision of sales and marketing support services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The financial statements present information about the Company as an individual undertaking and not about its group. The Company has not prepared group accounts as it is exempt from the requirement to do so by section 401 of the Companies Act 2006 as it is a subsidiary undertaking of HTC Corporation, a company incorporated in Taiwan, Republic of China, and is included in the consolidated accounts of that company.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of HTC Corporation as at 31 December 2023 and these financial statements may be obtained from No.23, Xinghua Rd., Taoyuan City, Taoyuan County 330, Taiwan, R.O.C..

 
2.3

Going concern

The directors have prepared the accounts on a going concern basis. This basis is considered appropriate as the ultimate parent company has confirmed that it does not intend to change the structure of the group transactions.

Page 14

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

The revenue comprises charges to the ultimate parent company of the group on a cost-plus basis for sales & marketing services and back-office support services. The revenue is recognised over the period during which the services are provided as the related expenses are incurred. 

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
cost of building over useful life of 50 years
Plant and machinery
-
3 years straight line
Fixtures and fittings
-
3-10 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 15

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

 
2.9

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade payables, other payables, and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing
Page 16

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Financial instruments (continued)

transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 17

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.12

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.13

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 18

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.15

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.16

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.17

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.18

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair
Page 19

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Current and deferred taxation (continued)

values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimate and assumption that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are: 
Accruals and Provisions
Provision is made for marketing costs under contractual arrangements based on management’s best estimation on the costs that will be incurred. Provision is also made on year end employee bonuses based on the company’s overall performance. An accrual is provided for repairs and maintenance needed on the portion of the property rented out to tenants based on the expected costs throughout the terms of the leases.
Impairments of fixed asset investments
Determining whether the fixed asset investments are impaired requires a comparison betwee the underlying net assets of the subsidiaries and the carrying value of the investments. £14.3m impairment has been recognised as the directors have determined that the net assets of the subsidiaries are less than the carrying value of the investments. The carrying value of the investments is £70,581,425 (see Note 12).
Depreciation
The directors exercise judgement in the determination of the useful economic lives and residual value of all classies of fixed assets. These assets are then depreciated over their useful economic lives to their residual balances. 

Page 20

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Services provided to group companies
7,625,204
6,523,098

7,625,204
6,523,098


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Secondment fees
157,072
-

Net rents receivable
414,834
418,749

571,906
418,749



6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
266,908
267,187

Exchange differences
7,998,278
(17,513,190)

Other operating lease rentals
1,329
970

Defined contribution pension cost
158,730
132,771

Page 21

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
21,250
21,900

Fees payable to the Company's auditors and their associates in respect of:

Taxation compliance services
2,800
2,600

All non-audit services not included above
1,500
-


8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
3,431,428
3,328,041

Social security costs
404,623
403,682

Cost of defined contribution scheme
158,730
132,771

3,994,781
3,864,494


Included within wages and salaries was £45,287 (2022: £12,361) in relation to employee termination benefits.
Except for the directors there were no other key management personnel.

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration (including directors)
19
20



Sales staff
28
27

47
47

Page 22

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Bank interest receivable
8,122,871
2,401,273

8,122,871
2,401,273


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
62,533
3,804,466


62,533
3,804,466


Total current tax
62,533
3,804,466

Deferred tax


Deferred tax movement for the year
28,191
9,504

Total deferred tax
28,191
9,504


Taxation on profit on ordinary activities
90,724
3,813,970
Page 23

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the applicable rate of corporation tax in the UK of 23.52% (2022 - 19%). On 1 April 2023, the main rate of corporation tax increased from 19% to 25%, a combination of the two rates over the period is 23.52%.The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(12,837,766)
20,669,834


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(3,019,443)
3,927,268

Effects of:


Non-tax deductible amortisation of goodwill and impairment
3,353,064
-

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
835
435

Capital allowances for year in excess of depreciation
45,112
34,599

Changes in provisions
(6,395)
4,365

Other timing differences leading to an increase (decrease) in taxation
28,191
-

Group relief
(310,640)
(152,697)

Total tax charge for the year
90,724
3,813,970

Page 24

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 January 2023
15,317,503
898,602
470,218
16,686,323


Additions
-
17,202
-
17,202


Disposals
-
(38,412)
-
(38,412)



At 31 December 2023

15,317,503
877,392
470,218
16,665,113



Depreciation


At 1 January 2023
2,849,526
856,958
467,052
4,173,536


Charge for the year on owned assets
241,350
22,652
2,906
266,908


Disposals
-
(38,412)
-
(38,412)



At 31 December 2023

3,090,876
841,198
469,958
4,402,032



Net book value



At 31 December 2023
12,226,627
36,194
260
12,263,081



At 31 December 2022
12,467,977
41,644
3,166
12,512,787

Page 25

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 January 2023
51,649,680


Additions
33,187,969



At 31 December 2023

84,837,649



Impairment


Charge for the period
14,256,224



At 31 December 2023

14,256,224



Net book value



At 31 December 2023
70,581,425



At 31 December 2022
51,649,680


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

HTC America Holding, Inc.
308 Occidental Ave S, Suite 300, Seattle, WA 98104, USA
Holdings company
Ordinary
100%
HTC America,Inc.*
308 Occidental Ave S, Suite 300, Seattle, WA 98104, USA
Sale of smart handheld devices and electronic components
Ordinary
100%
Dashwire,Inc.*
936 N.34th Street, Suite 200 Seattle, WA 98103
Cloud synchronisation technology design and management
Ordinary
100%
Inquisitive Minds,Inc.*
655 W Evelyn Ave, Suite 3, Mountain View CA94041
Development and sale of Digital Education Platform
Ordinary
100%
HTC America Innovation, Inc.*
308 Occidental Ave S, Suite 300, Seattle, WA 98104, USA
Design, research and development of application software
Ordinary
100%
Page 26

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)


Name

Registered office

Principal activity

Class of shares

Holding

HTC America Content Services, Inc.*
308 Occidental Ave S, Suite 300, Seattle, WA 98104, USA
Online/download media services
Ordinary
100%
One & Company Design, Inc.*
2700 18th Street San Francisco, CA, USA, 94110
Design, research and development of application software
Ordinary
100%
REIGN Technology Corporation
89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands
Holdings company
Ordinary
85%
Vive Arts Holding Corporation
89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands
Holdings company
Ordinary
97%
Viverse Holding Corporation
89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands
Holdings company
Ordinary
80%
DeepQ Holding Corporation
89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands
Holdings company
Ordinary
93%
REIGN Technology Corporation (Republic of China)****
No. 88, Section 3, Zhongxing Road, Xindian District, New Taipei City (12th Floor)
Holdings company
Ordinary
100%
DeepQ (BVI) Corp*****
3rd Floor, J & C Building, Road Town, Tortola, BVI, VG1110
Ordinary
Ordinary
100%
DeepQ Technology Corp******
13F., No. 207-5, Sec. 3, Beixin Rd., Xindian Dist., New Taipei City 231030, Taiwan (R.O.C.)
Healthcare and technology
Ordinary
100%
DeepQ Technology Corp (Beijing)******
1101- 11th Floor, 7th building, 1st yuan, East Road, Zhong Guan village, Hai Dian District, Beijing, China
Healthcare and technology
Ordinary
100%
Viverse Limited**
Salamanca, Wellington Street, Slough, Berkshire, United Kingdom, SL1 1YP
Holdings company
Ordinary
  100%
Viverse Limited***
10 Ealsfort Terrace, Dublin, Dublin 2, Ireland
Providing VR platform service
Ordinary
  100%

Page 27

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)

* Investment held via HTC America Holding, Inc.
** Investment held via Viverse Holding Corporation.
*** Investment held via Viverse Limited (UK).
**** Investment held via REIGN Technology Corporation.
***** Investment held via DeepQ Holding Corporation.
****** Investments held via DeepQ (BVI) Corp.
At balance sheet date. the minority interest in non-100% subsidiaries were held in a trust on behalf of certain named employees in HTC Corporation Group. 

Page 28

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Debtors

2023
2022
£
£


Trade debtors
479,924
98,260

Amounts owed by group undertakings
8,741,195
9,298,952

Other debtors
856,690
770,842

Prepayments and accrued income
107,166
118,840

Tax recoverable
1,567,791
159

11,752,766
10,287,053


Amounts owed by group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand. Therefore, these balances have not been discounted.


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
136,563,343
172,714,965

136,563,343
172,714,965



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
83,275
44,382

Amounts owed to group undertakings
293,023
305,190

Corporation tax
-
3,424,466

Other creditors
53,718
92,814

Accruals and deferred income
1,054,006
720,741

1,484,022
4,587,593


Page 29

 
HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Deferred taxation




2023
2022


£

£






At beginning of year
(78,883)
(69,379)


Charged to profit or loss
(28,191)
(9,504)



At end of year
(107,074)
(78,883)

2023
2022
£
£


Accelerated capital allowances
(186,014)
(128,557)

Pension and other provisions
78,940
49,674

(107,074)
(78,883)


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



104,061,442 (2022 - 104,061,442) Ordinary shares of £1.00 each
104,061,442
104,061,442



18.


Reserves

Profit and loss account

The profit and loss account comprises the balance of profits accumulated over the life of the Company.

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HTC EUROPE CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Share-based payments

On 31 October 2014, new share options with weighted average exercise price of TWD 134.50 were awarded by the ultimate parent company to employees. The vesting period of the award is 2-3 years. The expiry date for these share options is 31 October 2024. As at 1 January 2023, there were 97,000 granted share options. During the year, no granted share options lapsed and none of the share options granted were exercised. Therefore, at the Balance sheet date, there were 97,000 share options that remained.  There was no change in the WAEP of those share options throughout the year. These options were still active at the Balance Sheet date.
On 16 May 2019, new share options with weighted average exercise price of TWD 35.50 per share were awarded by the ultimate parent company to employees. The vesting period of the award is 2-3 years. The expiry date for these share options is 15 May 2029. As at 1 January 2023, there were 180 units granted share options and each unit of option is entitled to purchase 1,000 shares when the vesting period elapses. During the year, no units were granted, no units were forfeited and no units of the share options granted were exercised. Therefore, at the Balance sheet date, there were 180 units granted share options that remained. These options were still active at the Balance Sheet date.


20.


Contingent liabilities

The Company has provided a guarantee in favour of HM Revenue & Customs under a VAT deferment Scheme. The guarantee is limited to £400,000 (2022: £400,000).


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £158,730 (2022: £132,771). Contributions totalling £35,439 (2022: £62,630) were payable to the fund at the Balance sheet date.


22.


Related party transactions

The company has taken advantage of the exemption in accordance with FRS 102, paragraph 33.1.A "Related party disclosures" from the requirement to disclose transactions with wholly owned member of the group on the grounds that consolidated financial statements are prepared by the ultimated parent company. 


23.


Controlling party

As the balance sheet date, the immediate and ultimate parent company is HTC Corporation, a company incorporated in Taiwan, Republic of China, and listed on the Taipei International Stock Exchange, in both the current and prior year.
The only group in which results are consolidated is that headed by HTC Corporation. The consolidated accounts of HTC Corporation are available for inspection at No.23, Xinghua Rd., Taoyuan City, Taoyuan County 330, Taiwan, R.O.C..

 
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