2015 Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
Stock code:2006 TUNG HO STEEL ENTERPRISE CORPORATION 2015 Annual Report Date of Publication: May 9, 2016 Link to Annual Report: Market Observation Post System of TWSE: mops.twse.com.tw Company Website: www.tunghosteel.com 1 /2015 1. Names, titles, telephone numbers, and e-mail addresses of the Company's spokesperson and deputy-spokespersons Name of Spokesperson: Xiuqi Chen Title: Assistant manager Tel: (02)2551-1100 Extension705 Email address: [email protected] Name of Deputy-Spokesperson: Ruyu He Title: Assistant manager Tel: (02)2551-1100 Extension611 Email address: [email protected] Name of Deputy-Spokesperson: Shumei Kuo Title: Manager Tel: (02)2551-1100 Extension568 Email address: [email protected] 2. Addresses and telephone numbers of the head office, branch offices, and factories. Head Office: 6F, No. 9, Sec. 1, Chang'an East Road, Taipei City 10441 Tel: (02)2551-1100 Fax: (02)2562-6620 Kaohsiung Plant: No. 8, Jiaxing Street, Siaogang District, Kaohsiung City 81257 Tel: (07)802-3131 Fax: (07)801-0696 Taoyuan Plant: No.116, Caoluo, Neighborhood 8, Baozhang Vil., Guanyin Dist., Taoyuan City 32847 Tel: (03)476-1151 Fax: (03)476-1609 Miaoli Plant: No. 22, Pingding, Erhu Vil., Xihu Township, Miaoli County 368 Tel: (037)923-333 Fax: (037)923-311 Logistics Center at Taichung Port: No. 455, Sec. 3, Lin-gang Rd., Wuqi Dist., Taichung City 43547 Tel: (04)2656-2000 Fax: (04)2656-5500 3. Name, address, website, and telephone number of stock registration agent Name: Stock Agent Department, Yuanta Securities Co., Ltd. Address: B1, No. 210, Sec. 3, Chengde Rd., Datong Dist., Taipei City 10366 Website: www. yuanta.com Tel: (02)2586-5859 Fax: (02)2586-5977 4. Names of certified accountants, address, website, and telephone number of the accounting firm auditing the Company's latest financial report. Names of certified accountants in 2015: Accountants Cihui Li and Huizhi Kou Firm Name: KPMG International Cooperative Address: 68F, No. 7, Sec. 5, Xinyi Rd., Taipei City 11049 Website: www.kpmg.com.tw Tel: (02)8101-6666 5. Name of exchange house where overseas eligible securities are traded and method of inquiry on mentioned securities Exchange house for trading on Global Depositary Receipts (GDR): Bourse de Luxembourg Website for Information Query on Global Depositary Receipts (GDR): mops.twse.com.tw 6. Company Website: www. tunghosteel.com 2 /2015 Table of Contents I. Letter to Shareholders............................................................................................5 II. Company Profile .....................................................................................................8 1. Date of Establishment ...........................................................................................................8 2. Company Profile ...................................................................................................................8 III. Corporate Governance......................................................................................... 11 1. Organization ........................................................................................................................11 2. Information of directors, supervisors, general manager, vice general managers, assistant managers, and managers of various departments and branch offices .................................13 3. Corporate Governance Practices .........................................................................................28 4. Information on fees to CPA.................................................................................................48 5. Share transfer by directors, supervisors, managers and shareholders holding more than 10% equity and changes to share pledging by them in the past year and up to the date of report ...................................................................................................................................49 6. Information on the relationship between any of the top ten shareholders (related party, spouse, or kinship within the second degree)......................................................................52 7. The shareholding of the Company, director, supervisor, management and an enterprise that is directly or indirectly controlled by the Company in the invested company....................53 IV. Fund-raising Conditions ......................................................................................54 1. Capital and Shares...............................................................................................................54 2. Corporate bonds..................................................................................................................59 3. Issuance of global depositary receipts (GDR).....................................................................61 4. Issuance of preferred stockse ..............................................................................................61 5. Issuance of employee stock options and restricted stock awardse......................................61 6. Mergers, acquisitions or issuance of new shares for acquisition of shares of other companies............................................................................................................................61 7. Status of the capital utilization plan implementation ..........................................................62 V. Business Overview of the Company and Its Subsidiaries.................................63 1. Business content..................................................................................................................63 2. Status of Market and Sales ..................................................................................................69 3. Staff practitioners................................................................................................................80 4. Environmental protection expenditures ..............................................................................81 5. Employer/employee relations..............................................................................................84 6. Important contracts..............................................................................................................86 VI. Financial Status Overview of the Company and Its Subsidiaries....................89 1. Condensed balance sheet and condensed consolidated income statement for the last 5 years ....................................................................................................................................89 2. Financial analysis for the last five years .............................................................................98 3. Supervisors' Audit Report for the most recent year...........................................................106 3.1 Supervisors' Audit Report for the most recent year - Consolidated ..................................107 4. Latest financial statements: Please refer to the 2015 consolidated financial report for Tung Ho Steel Enterprise Corporation and its subsidiaries........................................................108 5. Latest accountant audited individual financial report .......................................................108 6. Effects of financial difficulties experienced by the company and its affiliated companies on the Company's financial status from recent year to the publication date of the annual report .................................................................................................................................108 3 /2015 VII. Financial position and financial performance review analysis and risk assessments ..........................................................................................................109 1. Financial summary............................................................................................................109 2. Financial performance.......................................................................................................111 3. Cash flows.........................................................................................................................113 4. The effects that significant capital expenditures have on financial operations in the recent year....................................................................................................................................115 5. Investment policy in the past year, profit/loss analysis, improvement plan, and investment plan for the coming year....................................................................................................115 6. Risk issues and analysis evaluation...................................................................................115 7. Other critical matters.........................................................................................................117 VIII. Special note items .......................................................................................... 118 1. Relevant information for the affiliated enterprises............................................................118 2. Status of private solicitation for marketable securities handling for the recent year up to the publication date of this annual report..........................................................................128 3. Status of company share holding or handling by a subsidiary company for the recent year up to the publication date of this annual report.................................................................128 4. Other