Table of Contents Business Report
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Table of contents Business Report ........................................................................................................................................................................................................... 1 【 Confirmation by Representative Director 】 ................................................................................................................................................. 2 I. Company Overview .................................................................................................................................................................................................. 3 1. Company Overview ................................................................................................................................................................................................. 3 2. History of the Company .................................................................................................................................................................................... 14 3. Changes to Paid-in Capital............................................................................................................................................................................... 16 4. Total Number of Shares ..................................................................................................................................................................................... 16 5. Status of Voting Rights ...................................................................................................................................................................................... 17 6. Dividend .................................................................................................................................................................................................................... 17 II. Business Activities ................................................................................................................................................................................................. 19 III. Financial Matters .................................................................................................................................................................................................. 29 1. Summarized Financial Information ............................................................................................................................................................. 29 2. Consolidated Financial Statements ............................................................................................................................................................ 30 3. Notes to Consolidated Financial Statements ........................................................................................................................................... 35 4. Financial Statements ............................................................................................................................................................................................ 78 5. Notes to Financial Statements ........................................................................................................................................................................ 81 6. Other Financial Matters ................................................................................................................................................................................... 122 IV. Auditor’s Audit Opinion ............................................................................................................................................................................... 127 V. Directors’ Management Diagnoses and Analytic Opinions ............................................................................................................ 129 VI. Company’s Organizations such as the Board of Directors ............................................................................................................ 134 1. Board of Directors .............................................................................................................................................................................................. 134 2. Audit System ......................................................................................................................................................................................................... 135 3. Shareholders’ Exercise of Voting Rights ................................................................................................................................................... 136 VII. Shareholders ....................................................................................................................................................................................................... 137 VIII. Executives and Employees .......................................................................................................................................................................... 141 1. Status of the Executives and Employees ................................................................................................................................................. 141 2. Remuneration to Executives .......................................................................................................................................................................... 142 IX. Affiliates ................................................................................................................................................................................................................. 144 X. Transactions with Stakeholders .................................................................................................................................................................... 146 XI. Other Matters Necessary for the Protection of Investors .............................................................................................................. 147 【 Confirmation of Expert 】 ................................................................................................................................................................................. 151 1. Confirmation by experts ............................................................................................................................................................................... 151 2. Interests with experts ........................................................................................................................................................................................ 151 Business Report (The 20th Year) Business year from January 1, 2018 to Sep 30, 2018 To The Financial Services Commission Korea Stock Exchange November 15, 2018 Type of corporation for submission: Listed company Occurrence of exemption reason: Not applicable Company Name: Silicon Works Co., Ltd. Representative Director: Son Bo-Ik Address of the Headquarters: 222 Techno 2-ro, Yuseong-gu, Daejeon, Korea Tel) +82-2-3777-1114 (Homepage) http://www.siliconworks.co.kr Person responsible for this report: (Position) CFO (Name) Sung Kwan Choi Tel) +82-2-3774-1114 【Confirmation by Representative Director】 Confirmation and Signature of Representative Director Letter of Confirmation We are representative director and others responsible for reporting. Based on the review and confirmation of this annual report with significant care, we confirm that all the important matters to be provided have been given without omission, falsification or any such signs and that nothing inducing critical misunderstanding of users of this report has been provided or expressed. Also we hereby confirm that the company has established and manages its internal accounting management system based on Article 2-2 and Article 2-3 of the [Act on External Auditors of Stock Companies]. (Limited to the companies subject to external audit based on Article 2 of the same Act). November 15, 2018 Silicon Works Co., Ltd. Son Bo-Ik Representative Director Choi Sung-Kwan Director of Reporting I. Company Overview 1. Company Overview A. Outline of subsidiaries to be consolidated (only when the stock-listed corporation that drafts the consolidated financial statements submits the annual, semiannual or quarterly report) (Unit: KRW) Whether Total asset at Company Main Basis of controlling it is Foundation Address the end of the name businesses relationship major previous year subsidiary Control over the Open new investee Silicon 2540 N. First markets and (paragraph 5 to 18 October Works Inc. st. #300 San support 323,446,339 of K-IFRS No. 1110 N/A 15, 2012 (USA) Jose, CA 95131 existing consolidated customers financial statements) 3A15, Control over the Zhongchen Open new investee Silicon Building, No. 1 markets and (paragraph 5 to 18 Works China March Lizezhong 2 support 1,278,075,342 of K-IFRS No. 1110 N/A Co., LTD 3, 2017 Road, existing consolidated (China) Wangjing, customers financial Chaoyang, statements) Beijing Note) The total assets of Silicon Works Inc. (USA) and Silicon Works China Co., LTD (China) at the end of the current fiscal year are December 31, 2017. (1) Changes of companies to be consolidated Division Subsidiary Reason Newly - - consolidated - - Excluded from - - consolidation - - B. Legal and Commercial Name of the Company The company’s name is Silicon