Operational Performance and Tax Governance
Operational Performance
In the post-pandemic era, customers have delayed their opening day due to global labor shortages and economic instability. Coupled with theme park operators busy receiving the large influx of tourists, the progress of Brogent's projects around the world has slowed down. However, Brogent's R&D team did not stop in 2023, and invested a considerable amount resources and R&D capabilities into product development, using innovative technologies to develop a wide variety of simulator rides to meet customers' diverse needs, providing customers with a full range of products and services. Brogent has launched o-Ride, a new rotating flying theater covering a small floor area, small and medium-sized simulator rides, such as the Racing Simulator, speedboat racing, and Super Hornet; collaborated with domestic manufacturers in building an LED dome screen, continued to create immersive experiences in the Metaverse, comprehensively increased market penetration, and consolidated the leadership of our brand.
Brogent not only focuses on the R&D of hardware equipment, but also actively invested resources in software development in 2023 in response to the growing demand of the entertainment market to replace digital content. We continue to enrich the digital media database and provide high-spec content for the flying theater film market. We also expanded the licensing of video themes to solve the problem of high production costs for customers. In addition, Brogent's animation team has adopted a high performance real-time processing gaming engine to reduce the production cost of video content, improving the efficiency of expanding the video database, and accelerating content licensing. Therefore, Brogent's strategy to generate long-term revenue is to combine software and hardware.
In addition to the diverse business models mentioned above, Brogent continues to pay attention to the international situation and attaches even greater importance to risk assessment and management, so that it will be able to respond to the uncertainty of changes in the global economy and markets, as well as the potential impact of exchange rate and interest rate fluctuations on the Company's financial performance. We continued to strengthen hedging using foreign currencies in 2023, and carried out natural hedging under appropriate risk regulations, which further assisted the management of interest rates and exchange rates.
Tax Governance
The principles of Brogent's tax governance policy and transfer pricing policy are in accordance with the Income Tax Act and Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing.
Transactions between affiliated enterprises are handled in accordance with the principles of arm's length transactions, and the internationally recognized transfer pricing guidelines announced by the Organization for Economic Cooperation and
Development (OECD). We do not use tax havens for tax planning for the purpose of tax avoidance.
Brogent mainly operates and expands business in Taiwan and Asia. At the same time, we comply with the tax laws and regulations of the countries we operate in, and assesses potential tax risks. Under tax governance risk management, we actively respond to international trends in tax governance, support the government in implementing preferential tax policies, adhere to the principle of honest tax payment, and fulfill our obligations as a corporate citizen, in order to implement sustainable development and increase value for shareholders.
Brogent's board of directors is the highest decision-making unit for an effective tax risk management mechanism; The Finance Center is responsible for tax governance and implements the five principles of the tax policy. It also regularly reviews the implementation of tax management, and reports on relevant tax management to the board of directors every six months.
In the post-pandemic era, customers have delayed their opening day due to global labor shortages and economic instability. Coupled with theme park operators busy receiving the large influx of tourists, the progress of Brogent's projects around the world has slowed down. However, Brogent's R&D team did not stop in 2023, and invested a considerable amount resources and R&D capabilities into product development, using innovative technologies to develop a wide variety of simulator rides to meet customers' diverse needs, providing customers with a full range of products and services. Brogent has launched o-Ride, a new rotating flying theater covering a small floor area, small and medium-sized simulator rides, such as the Racing Simulator, speedboat racing, and Super Hornet; collaborated with domestic manufacturers in building an LED dome screen, continued to create immersive experiences in the Metaverse, comprehensively increased market penetration, and consolidated the leadership of our brand.
Brogent not only focuses on the R&D of hardware equipment, but also actively invested resources in software development in 2023 in response to the growing demand of the entertainment market to replace digital content. We continue to enrich the digital media database and provide high-spec content for the flying theater film market. We also expanded the licensing of video themes to solve the problem of high production costs for customers. In addition, Brogent's animation team has adopted a high performance real-time processing gaming engine to reduce the production cost of video content, improving the efficiency of expanding the video database, and accelerating content licensing. Therefore, Brogent's strategy to generate long-term revenue is to combine software and hardware.
In addition to the diverse business models mentioned above, Brogent continues to pay attention to the international situation and attaches even greater importance to risk assessment and management, so that it will be able to respond to the uncertainty of changes in the global economy and markets, as well as the potential impact of exchange rate and interest rate fluctuations on the Company's financial performance. We continued to strengthen hedging using foreign currencies in 2023, and carried out natural hedging under appropriate risk regulations, which further assisted the management of interest rates and exchange rates.
Tax Governance
The principles of Brogent's tax governance policy and transfer pricing policy are in accordance with the Income Tax Act and Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing.
Transactions between affiliated enterprises are handled in accordance with the principles of arm's length transactions, and the internationally recognized transfer pricing guidelines announced by the Organization for Economic Cooperation and
Development (OECD). We do not use tax havens for tax planning for the purpose of tax avoidance.
Brogent mainly operates and expands business in Taiwan and Asia. At the same time, we comply with the tax laws and regulations of the countries we operate in, and assesses potential tax risks. Under tax governance risk management, we actively respond to international trends in tax governance, support the government in implementing preferential tax policies, adhere to the principle of honest tax payment, and fulfill our obligations as a corporate citizen, in order to implement sustainable development and increase value for shareholders.
Brogent's board of directors is the highest decision-making unit for an effective tax risk management mechanism; The Finance Center is responsible for tax governance and implements the five principles of the tax policy. It also regularly reviews the implementation of tax management, and reports on relevant tax management to the board of directors every six months.
