Cleanaway Company Limited ANNUAL REPORT 2020
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Stock Code: 8422 Cleanaway Company Limited ANNUAL REPORT 2020 (若與中文版有差異以中文版為主) The English report is a translation of the original in Chinese for information purpose only. In case of a discrepancy, the Chinese version will prevail. Publication Date: March 31, 2021 Report Website: Market Observation Post System (http://mops.twse.com.tw) Head Office: No. 308, Zhongshan South Road, Gangshan District, Kaohsiung City Mainline: 07 -6228422 Company website: http://www.cleanaway.tw Fax: 07-6235977 I. Name, job title and contact phone number and email of the Company's spokesperson and acting spokesperson: (I) Company Spokesperson Name: Tsung-Tien Chen Title: Chief Financial Officer Telephone: (07) 622-8422 Email: [email protected] (II) Acting Spokesperson Name: Ping-Cheng Hung Title: Finance Manager Telephone: (07) 622-8422 Email: [email protected] II. Addresses and telephone numbers of the head office, branch offices, and plants: (I) Head office Address: 1st Floor, No. 308, Zhongshan South Road, Gangshan District, Kaohsiung City Telephone: (07) 622-8422 (II) Plant Address: No. 100, Ln. 1, Shanxi Road, Gangshan District, Kaohsiung City Telephone: (07) 628-3865 III. Name, address, website, and telephone of the stock transfer handling institution: Name: Stock Transfer Agency Unit of Taishin International Bank Co., Ltd. Address: B1, No. 96, Section 1, Jianguo North Road, Taipei City Website: http://www.taishinbank.com.tw Telephone: (02) 2504-8125 IV. Names of certified accountants, address, website, and telephone number of the accounting firm auditing the Company's latest financial report: CPA Firm: Deloitte Taiwan Certifying CPAs: Shih Chin-Chuan and Lai Kuan-Chung Address: 20F, No. 100, Songren Road, Xinyi District, Taipei City Telephone: (02) 2725-9988 Website: http://www.deloitte.com.tw V. Name of the trading place where overseas securities are listed for trading and methods to inquire about the overseas securities information: None. VI. Company Website: http://www.cleanaway.tw/ Cleanaway Company Limited 2020 Annual Report Table of Contents Chapter 1 Letter to Shareholders ....................................................................................................... 1 I. 2020 Business Report ................................................................................................................. 1 II. Overview of 2021 Business Plan .............................................................................................. 3 III. Future corporate development strategy ................................................................................ 4 IV. Impact of corporate social responsibility and sustainable operation, external competitive environment, regulatory environment and overall operating environment ..................... 4 Chapter 2 Company Profile ................................................................................................................ 6 I. Date of founding: May 4, 1999 .................................................................................................. 6 II. Company history:...................................................................................................................... 6 Chapter 3 Corporate Governance Report........................................................................................... 7 I. Organization ............................................................................................................................... 7 II. Information on Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, and heads of departments and branches........................................................... 9 III. Implementation of corporate governance ........................................................................... 22 IV. Information on CPA expenses: ............................................................................................. 49 V. Replacement of CPAs ........................................................................................................... 50 VI. The Company's Directors, President, managerial officers in charge of finance or accounting who has served in the CPA firm or its affiliated companies in the most recent fiscal year shall disclose their names, positions and the period of employment in CPA firm or its affiliated companies: None. ............................................................................... 50 VII. Share transfer by Directors, Supervisors, managerial officers and shareholders holding more than 10% equity and changes to share pledging by them: ..................................... 51 VIII.Information of the Top Ten Largest Shareholders who are Related Parties or have a Spousal or Familial Relationship within the Second Degree of Kinship ......................... 51 IX. The shareholding of the Company, Directors, Supervisors, managerial officers and an enterprise that is directly or indirectly controlled by the Company in the invested company and the calculation of the consolidated shareholding percentage .................... 54 Chapter 4 Financing Status .............................................................................................................. 55 I. Capital and shares .................................................................................................................... 55 II. Issuance of corporate bonds (including overseas corporate bonds): None. ...................... 58 III. Preferred Shares: None. ........................................................................................................ 58 IV. Issuance of overseas depository receipts: None .................................................................. 58 V. Employee Stock Options: None.............................................................................................. 58 VI. Issuance of new restricted employee shares: None. ............................................................ 58 VII. Mergers and Acquisitions, or as Assignee of New Shares Issued by Another Company: N/A ......................................................................................................................................... 58 VIII. Implementation of capital utilization plans: .................................................................... 58 Chapter 5 Operational Highlights .................................................................................................... 59 I. Business activities ..................................................................................................................... 59 II. Overview of market, production and sales ........................................................................... 67 III. Information on employees in the last two years and as of the publication date of the Annual Report (consolidated information) ........................................................................ 71 IV. Expenditure on environmental protection ........................................................................... 71 V. Labor relations ......................................................................................................................... 72 VI. Important contracts ............................................................................................................... 74 Chapter 6 Financial Overview .......................................................................................................... 75 I. Concise financial data from the last five years ...................................................................... 75 II. Financial analysis .................................................................................................................... 78 III. Supervisors' Review Report on financial statements of the most recent year ................. 80 IV. Financial statements of the most recent year ....................................................................... 82 V. Parent Company Only Financial Statements audited and attested by a CPA in the most recent year ............................................................................................................................. 82 VI. Impact on the Company's financial status due to financial difficulties experienced by the company and its affiliated companies in the most recent year and as of the printing date of this Report: None. ............................................................................................................. 82 Chapter 7 Review and Analysis of the Financial Position and Operating Performance and Risk Assessment ................................................................................................................................. 83 I. Financial position...................................................................................................................... 83 II. Financial performance............................................................................................................ 87 III. Cash flows .............................................................................................................................. 88 IV. Impact of major capital expenditures on corporate finances and business for the most recent year ............................................................................................................................. 88 V. Investment policy in the past year, the main reasons for profit/loss, improvement plan, and investment plan for the upcoming fiscal year: ..................................................................