When Wang Xuehong gave a speech in China, she caused controversy by saying "Chinese people's brand". (File photo)
[Reporter Gao Jiahe/Taipei Report] In 2010, HTC Chairman Wang Xuehong shouted in a speech in China that "HTC is a brand created by the Chinese." In 2011 and 2012, HTC's profits reached a peak when it expanded westward, but it has declined since then. The latest financial report shows that due to operational difficulties faced by many Chinese subsidiaries or joint ventures, HTC has carried out intensive write-offs in recent years in order to get rid of the "burden"; "One China" has become a sad point for HTC, and its westward business has begun to retreat.
After calling out the Chinese brand, HTC recognized profits from its westward expansion business exceeding NT$1.5 billion in 2011 and NT$2 billion in 2012. However, with the rapid rise of competition from China's own brands, the two major businesses responsible for the production and sales of smartphones, "Weihong Electronics (Shanghai) Co., Ltd." and "HTC Communications Co., Ltd." have declined rapidly.
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The financial report shows that Weihong Electronics (Shanghai) reduced its capital by US$130 million in September 2019, and HTC also reduced its capital by US$30 million and US$3.5 million in March 2025 and January 2026 respectively; but judging from the repatriation data, the capital reduction and refunded shares seem to be "stuck in China."
In addition, according to the information uploaded by HTC's self-report, by the first half of this year, HTC, which had remitted a total of 4.12 billion in investments from Taiwan, had a book value of only 270 million yuan at the end of the period; its business items were also changed from "sales of handheld computer products" to "sales and after-sales services of virtual reality devices and smart handheld devices." Although Weihong Electronics and Hongda Communications have not yet been cancelled, judging from the capital reduction actions, the business has been essentially "empty shell".
The financial report also shows that HTC is fully withdrawing and cleaning up unproductive investments in China, including Al Qidi Communication Technology (Beijing), which was dissolved by resolution of the shareholders' meeting at the end of 2025; Al Qidi Electronics (Shanghai) completed its deregistration in April 2025; and HTC All Things Technology (Beijing), which is responsible for R&D and sales, also completed its deregistration in September 2025.
The total paid-in capital of HTC's China business reached 5.33 billion, and the book value at the end of the period was burned at 2.47 billion. It seems that the loss is less than 3 billion; but many of them are through overseas BVI subsidiaries (such as H.T.C. (B.V.I.) Corp. etc.) indirectly invest funds in China, and have experienced multiple capital reductions and increases, and subsidiaries whose net worth has turned negative are often supported by the parent company through "fund loans" (such as borrowings from overseas subsidiaries), and the total losses are estimated to be at least tens of billions.
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