Himax Technologies, Inc. Files 20-F Annual Report

TL;DR

<b>Himax Technologies, Inc. has filed its 20-F annual report detailing its financial and operational status for the fiscal year ending December 31, 2023.</b>

AI Summary

Himax Technologies, Inc. (HIMX) filed a Foreign Annual Report (20-F) with the SEC on April 2, 2024. Himax Technologies, Inc. filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The filing covers the company's operations and financial status as of December 31, 2023. Key financial data points such as unsecured and secured borrowings are reported for 2023, 2022, and 2021. Information regarding property, plant, and equipment, including machinery and office equipment, is detailed for the 2023 fiscal year. The report includes details on intangible assets like computer software and other intangible assets for the 2023 period.

Why It Matters

For investors and stakeholders tracking Himax Technologies, Inc., this filing contains several important signals. This 20-F filing provides a comprehensive overview of Himax Technologies' financial health and operational activities for the past fiscal year, crucial for investors assessing the company's performance and future prospects. The detailed breakdown of assets, liabilities, and borrowings offers insights into the company's capital structure and risk management strategies, important for financial analysis.

Risk Assessment

Risk Level: medium — Himax Technologies, Inc. shows moderate risk based on this filing. The filing is a standard annual report (20-F), which typically contains a broad range of information. Specific financial performance details or forward-looking statements that might indicate higher risk are not immediately apparent from the provided header information.

Analyst Insight

Investors should review the full 20-F filing to understand Himax Technologies' financial performance, operational segments, and risk factors for the 2023 fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-02 — Filing Date (Date the 20-F was filed)
• 0001342338 — Central Index Key (Himax Technologies, Inc. identifier)
• 3674 — SIC Code (Semiconductors & Related Devices)

Key Players & Entities

• Himax Technologies, Inc. (company) — Filer of the 20-F report
• 2023-12-31 (date) — Conformed period of report
• 2024-04-02 (date) — Filed as of date
• 0001342338 (company) — Central Index Key for Himax Technologies, Inc.
• 3674 (industry) — Standard Industrial Classification for Semiconductors & Related Devices
• E9 (location) — State of Incorporation
• TW (location) — Country of incorporation
• ChangHwaBank (company) — Mentioned in relation to borrowings

FAQ

Industry Context

Himax Technologies operates in the semiconductor industry, specifically focusing on display drivers and related integrated circuits.

Regulatory Implications

As a foreign private issuer, Himax Technologies files an annual report on Form 20-F, which is a comprehensive disclosure document required by the U.S. Securities and Exchange Commission.

What Investors Should Do

1. Review the detailed financial statements within the 20-F for revenue, net income, and balance sheet information.
2. Analyze the Management's Discussion and Analysis section for insights into operational performance and strategic priorities.
3. Examine the risk factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 20-F filing.
• 2024-04-02: Filing Date — Date the 20-F annual report was submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing of the 20-F for the fiscal year 2023. Comparative data from the previous year's filing (2022) would be found within the document itself.

Key Financial Figures

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• $30 — eport were made at a rate of $1.00 to NT$30.62, the exchange rates set forth in the
• $31.93 — 24, the noon buying rate was $1.00 to NT$31.93. Unless otherwise indicated, in this a
• $0.0001 — e par value of our ordinary shares from $0.0001 each to $0.3 each; and (iii) a change i
• $67.1 m — from Customer A and its affiliates were $67.1 million, which represented approximately

Filing Documents

• himx-20231231x20f.htm (20-F) — 6156KB
• himx-20231231xex2d4.htm (EX-2.4) — 154KB
• himx-20231231xex8d1.htm (EX-8.1) — 30KB
• himx-20231231xex12d1.htm (EX-12.1) — 12KB
• himx-20231231xex12d2.htm (EX-12.2) — 11KB
• himx-20231231xex13d1.htm (EX-13.1) — 8KB
• himx-20231231xex15d1.htm (EX-15.1) — 3KB
• himx-20231231xex97d1.htm (EX-97.1) — 43KB
• himx-20231231x20f002.jpg (GRAPHIC) — 49KB
• himx-20231231x20f003.jpg (GRAPHIC) — 84KB
• 0001104659-24-042156.txt (&nbsp;) — 27502KB
• himx-20231231_cal.xml (EX-101.CAL) — 162KB
• himx-20231231_def.xml (EX-101.DEF) — 614KB
• himx-20231231_lab.xml (EX-101.LAB) — 1010KB
• himx-20231231_pre.xml (EX-101.PRE) — 984KB
• himx-20231231.xsd (EX-101.SCH) — 202KB
• himx-20231231x20f_htm.xml (XML) — 7024KB

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 7

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 7

KEY INFORMATION

ITEM 3. KEY INFORMATION 7 3.A. [Reserved] 7 3.B. Capitalization and Indebtedness 7 3.C. Reason for the Offer and Use of Proceeds 7 3.D. Risk Factors 7

INFORMATION ON THE COMPANY

ITEM 4. INFORMATION ON THE COMPANY 22 4.A. History and Development of the Company 22 4.B. Business Overview 23 4.C. Organizational Structure 54 4.D. Property, Plants and Equipment 55

UNRESOLVED STAFF COMMENTS

ITEM 4A. UNRESOLVED STAFF COMMENTS 55

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 55 5.A. Operating Results 55 5.B. Liquidity and Capital Resources 67 5.C. Research and Development 70 5.D. Trend Information 70 5.E. Critical Accounting Estimates 73

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 73 6.A. Directors and Senior Management 73 6.B. Compensation 75 6.C. Board Practices 76 6.D. Employees 78 6.E. Share Ownership 81 6.F. Disclosure of a registrant's action to recover erroneously awarded compensation 81

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 81 7.A. Major Shareholders 81 7.B. Related Party Transactions 82 7.C. Interests of Experts and Counsel 83

FINANCIAL INFORMATION

ITEM 8. FINANCIAL INFORMATION 83 8.A. Consolidated Statements and Other Financial Information 83 8.B. Significant Changes 84

THE OFFER AND LISTING

ITEM 9. THE OFFER AND LISTING 84 9.A. Offer and Listing Details 84 9.B. Plan of Distribution 85 9.C. Markets 85 9.D. Selling Shareholders 85 9.E. Dilution 85 9.F. Expenses of the Issue 85 2 Table of Contents

ADDITIONAL INFORMATION

ITEM 10. ADDITIONAL INFORMATION 85 10.A. Share Capital 85 10.B. Memorandum and Articles of Association 85 10.C. Material Contracts 86 10.D. Exchange Controls 86 10.E. Taxation 86 10.F. Dividends and Paying Agents 89 10.G. Statement by Experts 89 10.H. Documents on Display 89 10.I. Subsidiary Information 89 10.J. Annual Report to Security Holders 89

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 89

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 90 12.A. Debt Securities 90 12.B. Warrants and Rights 90 12.C. Other Securities 90 12.D. American Depositary Shares 90 PART II 91

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 91

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 91

CONTROLS AND PROCEDURES

ITEM 15. CONTROLS AND PROCEDURES 91

[RESERVED]

ITEM 16. [RESERVED] 94 16.A. Audit Committee Financial Expert 94 16.B. Code of Ethics 94 16.C. Principal Accountant Fees and Services 94 16.D. Exemptions from the Listing Standards for Audit Committees 94 16.E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 95 16.F. Change in Registrant's Certifying Accountant 95 16.G. Corporate Governance 95 16.H. Mine Safety Disclosure 95 16.I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 95 16.J. Insider Trading Policies 96 16.K. Cybersecurity 96 PART III 96

FINANCIAL STATEMENTS

ITEM 17. FINANCIAL STATEMENTS 96

FINANCIAL STATEMENTS

ITEM 18. FINANCIAL STATEMENTS 97

EXHIBITS

ITEM 19. EXHIBITS 98 3 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This annual report on Form 20-F contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve significant risks and uncertainties. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition, or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this annual report. The words "anticipate," "believe," "expect," "intend," "plan," "estimate" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including, among other things and not limited to, our anticipated growth strategies, our and our customers' future business developments, results of operations and financial condition, our ability to develop new products, the future growth and pricing trend of the display driver markets, the future growth of end-use applications that use flat panel displays, particularly TFT-LCD panels, development of alternative flat panel display technologies, market acceptance and competitiveness of the driver and non-driver products developed by us, our ability to protect intellectual property, changes in customer relations and preference, shortage in supply of key components, our ability to collect accounts receivable and manage inventory, changes in economic and financial market conditions, and other factors. For a discussion

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION 3.A. [Reserved] 3.B. Capitalization and Indebtedness Not applicable. 3.C. Reason for the Offer and Use of Proceeds Not applicable. 3.D. Risk Factors Risks Relating to Our Financial Condition and Business Our suppliers may have increasing bargaining power as a result of industry consolidation, which could result in an increase in our average unit cost and a decrease in our profit margin. There may be industry consolidation among our suppliers. Merger and acquisition activities will likely increase the size and market power of the relevant suppliers and reduce the number of suppliers we could use under a simpler supplier chain. Therefore, suppliers could be in a better position to bargain for higher prices, longer contract terms, higher deposit and/or higher contract breach penalties for their services and products, which could result in an increase in our average unit cost and/or penalty expenses. If we are unable to transfer any increase in average unit cost to our customers, our gross margin and results of operations could be adversely affected. We derive the majority of our net revenues from sales to the TFT-LCD and OLED panel industry, which is highly cyclical and subject to price fluctuations. Such cyclicality and price fluctuations could negatively impact our business or results of operations. In 2022 and 2023, 86.8% and 85.1% of our revenues, respectively, were attributable to display drivers that were incorporated into TFT-LCD and OLED panels. We expect to continue to substantially depend on sales to the TFT-LCD and OLED panel industry for the foreseeable future. The TFT-LCD and OLED panel industry is intensely competitive and is vulnerable to cyclical market conditions. The average selling prices of TFT-LCD and OLED panels generally decline with time as a result of, among other factors, drop in demand for end products that incorporate TFT LCD and OLED panels, new capacity ramp-up or factory utilization improvement, techno

View Full Filing

View this 20-F filing on SEC EDGAR