Year 2016, Based on the Findings of a Self-Evaluation
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1. Spokesperson Jessica Chiou-Jii Huang Vice President, Finance Center Tel: 886-3-567-8168 E-mail: [email protected] 2. Deputy Spokesperson Wan-Shou Wen Executive Vice President, Memory IC Manufacturing Business Group Tel: 886-3-567-8168 E-mail:[email protected] Yuan-Mou Su Vice President, Sales Center Tel: 886-3-567-8168 E-mail: [email protected] 3. Company Address and Telephone Headquarters and Taichung Site: No. 8, Keya 1st Rd.,Daya Dist., Central Taiwan Science Park, Taichung City 428, Taiwan, R.O.C. Tel: 886-4-2521-8168 Jhubei Office: No.38, Gaotie 1st Rd., Jhubei City, Hsinchu County 30273, Taiwan R.O.C. Tel:886-3-5678168 Wenxing LAB: No.186, Sec. 2, Wenxing Rd., Jhubei City, Hsinchu County 30274, Taiwan R.O.C. Tel:886-3-5678168 Taipei Office: 2F, No.192, Jingye 1st Rd., Zhongshan Dist., Taipei City 104, Taiwan, R.O.C. 26F, No.1, Songzhi Rd., Xinyi Dist., Taipei City 110, Taiwan, R.O.C. Tel: 886-2-8177-7168 4. Common Stock Transfer Office Stock Registrar and Transfer Office, Winbond Electronics Corp. 8F, No.398, Xingshan Rd., Neihu Dist., Taipei City 114, Taiwan, R.O.C. Tel:886-2-2790-5885 Website: http://stock.walsin.com 5. Auditor Deloitte & Touche Kuo-Tyan Hong and Ker-Chang Wu 12F, No. 156, Sec. 3, Min-Sheng E. Rd., Taipei, 105, Taiwan, R.O.C Tel: 886-2-2545-9988 Website: http://www.deloitte.com.tw 6. Overseas Securities Listing Exchange and Information Luxembourg Stock Exchange Website: http://www.bourse.lu 7. Company Website: http://www.winbond.com Table of Contents Letter to Shareholders ............................................................................................................................. 1 Company Profile................................................................................................................................................................. 2 Corporate Governance Report 1. Organization system ...................................................................................................................................................... 3 2. Profile of directors, supervisors, president, vice presidents, assistant vice presidents, and department and branch managers ....................................................................................................................................................................... 6 3. Implementation of corporate governance .................................................................................................................. 19 4. Information on fees to CPA ......................................................................................................................................... 41 5. Information on change of accountants ..................................................................................................................... 42 6. The chairman, president and financial or accounting manager of the Company who had worked for the certifying accounting firm or its affiliate in the past year ............................................................................................................ 42 7. Share transfer by directors, supervisors, managers and shareholders holding more than 10% interests and changes to share pledging by them in the past year and up to the date of report ................................................................... 43 8. Information on relationship between any of the top ten shareholders (related party, spouse, or kinship within the second degree) ............................................................................................................................................................ 43 9. The shareholding of the Company, director, supervisor, management and an enterprise that is directly or indirectly controlled by the Company in the invested company ................................................................................................. 45 Capital and Shareholding 1. Capital and shareholding ............................................................................................................................................. 45 2. Issuance of corporate bonds ....................................................................................................................................... 49 3. Issuance of preferred stocks ........................................................................................................................................ 49 4. Issuance of global depositary receipts (GDR) .............................................................................................................. 49 5. Exercise of employee stock option plan (ESOP) .......................................................................................................... 50 6. Restricted stock awards: .............................................................................................................................................. 50 7. Mergers, acquisitions or issuance of new shares for acquisition of shares of other companies ................................ 50 8. Implementation of capital allocation plan ................................................................................................................... 50 Business Overview 1. Business activities ........................................................................................................................................................ 51 2. Market, production and sales ...................................................................................................................................... 55 3. Employees.................................................................................................................................................................... 60 4. Spending on environmental protectinons ................................................................................................................... 60 5. Employer-employee relations ..................................................................................................................................... 61 6. Important contracts ..................................................................................................................................................... 64 7. Financial difficulties and corporate events encountered by the Company and affiliates in the past year and up to the date of report that have material impact on the financial status of the Company ..................................................................................................................................................................................... 64 Financial Overview 1. Condensed balance sheets, statements of income, names of auditors, and audit opinions (2012-2016)................ 65 2. Financial analysis (2012 - 2016) ................................................................................................................................. 69 3. Supervisors' Audit Report .......................................................................................................................................... 71 4. 2016 Consolidated Financial Statements .................................................................................................................. 72 5. 2016 Stand Alone Financial Statements .................................................................................................................. 129 Financial Position, Financial Performance and Risk Analysis 1. Financial position ..................................................................................................................................................... 182 2. Financial performance ............................................................................................................................................. 182 3. Cash flow analysis .................................................................................................................................................... 183 4. Effect of major capital spending on financial position and business operation ...................................................... 183 5. Industry-specific key performance indicator ........................................................................................................... 184 6. Investment policy in the past year, profit/loss analysis, improvement plan, and investment plan for the coming year .......................................................................................................................................................................... 184 7. Risk management and evaluation ........................................................................................................................... 184 8. Other important events ........................................................................................................................................... 188 Important Notice 1. Profiles on affiliates and subsidiaries ...................................................................................................................... 189 2. Private placement activities .................................................................................................................................... 196 3. Holding or disposal of stocks of the Company by subsidiaries in the past year and up to the date of report ........ 196 4. Other supplemental information ............................................................................................................................