GIANTPLUS TECHNOLOGY CO., LTD. 2019 Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
Stock Code: 8105 GIANTPLUS TECHNOLOGY CO., LTD. 2019 Annual Report Notice to readers This English-version annual report is a summary translation of the Chinese version and is not an official document of the shareholders’ meeting. If there is any discrepancy between the English and Chinese versions, the Chinese version shall prevail. Taiwan Stock Exchange Market Observation Post System: http://mops.twse.com.tw Printed on May 2, 2020 Spokesperson Name: YI-CHENG CHEN Title: Vice President of Finance & Accounting Center Tel: (037) 611-611 E-mail: [email protected] Acting Spokesperson Name: YU-CHUNG HSIEH Title: Assistant Vice President of Marketing and Sales Center Tel: (037) 611-611 E-mail: [email protected] Headquarters, Branches and Plant Headquarters: No. 15, Industrial Rd., Toufen, Miaoli, Taiwan (R.O.C.) Plant: No. 15 and No. 13, Industrial Rd., Toufen, Miaoli, Taiwan (R.O.C.) Tel: (037) 611-611 Plant: No. 1127, Heping Rd., Bade City, Taoyuan, Taiwan (R.O.C.) Tel: (03) 367-9978 Plant: No. 2-1, Wenhua Rd., Hukou Township, Hsinchu, Taiwan (R.O.C.) Tel: (03) 611-6198 Stock Transfer Agent Name: Yuanta Securities Address: B1F., No. 210, Sec. 3, Chengde Rd., Datong Dist., Taipei, Taiwan (R.O.C.) Tel: (02) 2586-5859 Website: http://www.yuanta.com.tw CPA of the most recent financial report Accountant: CHUNG-YI CHIANG, JUNG-LIN LEE Accounting Firm: KPMG Address: 68F., No. 7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, Taiwan (R.O.C.) Website: https://www.kpmg.com.tw Tel: (02) 8101-6666 Overseas Securities Exchange: Not applicable Corporate Website http://www.giantplus.com.tw CONTENTS I. A LETTER TO SHAREHOLDERS .................................................................................................................................... 1 II. COMPANY PROFILE ......................................................................................................................................................... 3 2.1 DATE OF INCORPORATION ............................................................................................................................................. 3 2.2 COMPANY HISTORY ..................................................................................................................................................... 3 III. CORPORATE GOVERNANCE REPORT .......................................................................................................................... 4 3.1 ORGANIZATION ........................................................................................................................................................... 4 3.2 DIRECTORS, SUPERVISORS AND MANAGEMENT TEAM ..................................................................................................... 6 3.3 IMPLEMENTATION OF CORPORATE GOVERNANCE .......................................................................................................... 30 3.4 REPLACEMENT OF CPA: NOT APPLICABLE.................................................................................................................... 56 3.5 THE COMPANY’S CHAIRMAN, PRESIDENT, AND MANAGERS IN CHARGE OF ITS FINANCE OR ACCOUNTING OPERATIONS HELD POSITIONS IN THE COMPANY’S INDEPENDENT AUDITING FIRM OR ITS AFFILIATES IN THE MOST RECENT YEAR: NONE. ........... 56 3.6 CHANGES IN SHAREHOLDING OF DIRECTORS, MANAGERS AND MAJOR SHAREHOLDERS ................................................... 56 3.7 RELATIONSHIP AMONG THE TOP TEN SHAREHOLDERS ................................................................................................... 59 3.8 OWNERSHIP OF SHARES IN AFFILIATED ENTERPRISES .................................................................................................... 62 IV. CAPITAL OVERVIEW ...................................................................................................................................................... 63 4.1 CAPITAL AND SHARES ................................................................................................................................................ 63 4.2 BONDS: NONE. .......................................................................................................................................................... 68 4.3 PREFERRED SHARES: NONE. ....................................................................................................................................... 68 4.4 GLOBAL DEPOSITORY RECEIPTS: NONE. ...................................................................................................................... 68 4.5 EMPLOYEE STOCK OPTIONS: NONE. ............................................................................................................................ 68 4.6 ISSUANCE OF NEW RESTRICTED EMPLOYEE SHARES: NONE........................................................................................... 68 4.7 STATUS OF NEW SHARE ISSUANCE IN CONNECTION WITH MERGERS AND ACQUISITIONS: NONE. ....................................... 68 4.8 FINANCING PLANS AND IMPLEMENTATION: NONE. ........................................................................................................ 68 V. OPERATIONAL HIGHLIGHTS ..................................................................................................................................... 69 5.1 BUSINESS ACTIVITIES ................................................................................................................................................ 69 5.2 MARKET AND SALES OVERVIEW ................................................................................................................................. 76 5.3 HUMAN RESOURCES .................................................................................................................................................. 82 5.4 ENVIRONMENTAL PROTECTION EXPENDITURE .............................................................................................................. 83 5.5 LABOR RELATIONS .................................................................................................................................................... 83 5.6 IMPORTANT CONTRACTS ............................................................................................................................................ 87 VI. FINANCIAL INFORMATION .......................................................................................................................................... 88 6.1 FIVE-YEAR FINANCIAL SUMMARY – BASED ON IFRS ................................................................................................... 88 6.2 FIVE-YEAR FINANCIAL ANALYSIS ............................................................................................................................... 93 6.3 AUDIT COMMITTEE’S REPORT FOR THE MOST RECENT YEAR ........................................................................................ 99 6.4 FINANCIAL STATEMENTS FOR THE MOST RECENT YEAR .................................................................................................. 99 6.5 A PARENT COMPANY ONLY FINANCIAL STATEMENT FOR THE MOST RECENT FISCAL YEAR, CERTIFIED BY A CPA. ................... 99 VII. REVIEW OF FINANCIAL CONDITIONS, FINANCIAL PERFORMANCE, AND RISK MANAGEMENT .............. 100 7.1 ANALYSIS OF FINANCIAL STATUS .............................................................................................................................. 100 7.2 ANALYSIS OF FINANCIAL PERFORMANCE ................................................................................................................... 101 7.3 ANALYSIS OF CASH FLOW ........................................................................................................................................ 102 7.4 MAJOR CAPITAL EXPENDITURE ITEMS ....................................................................................................................... 103 7.5 INVESTMENT POLICY IN THE LAST YEAR, MAIN CAUSES FOR PROFITS OR LOSSES, IMPROVEMENT PLANS AND INVESTMENT PLANS FOR THE COMING YEAR................................................................................................................................. 103 7.6 ANALYSIS OF RISK MANAGEMENT ............................................................................................................................ 103 7.7 OTHER IMPORTANT MATTERS ................................................................................................................................... 108 VIII. SPECIAL DISCLOSURE ................................................................................................................................................. 108 8.1 SUMMARY OF AFFILIATED COMPANIES....................................................................................................................... 108 8.2 PRIVATE PLACEMENT SECURITIES IN THE MOST RECENT YEARS: NONE. ....................................................................... 114 8.3 SHARES IN THE COMPANY HELD OR DISPOSED OF BY SUBSIDIARIES IN THE MOST RECENT YEARS: NONE. ....................... 114 8.4 SPECIAL NOTES: NONE. ............................................................................................................................................ 114 8.5 IF ANY OF THE SITUATIONS LISTED IN ARTICLE 36, PARAGRAPH 3, SUBPARAGRAPH 2 OF THE SECURITIES AND EXCHANGE ACT, WHICH MIGHT MATERIALLY AFFECT SHAREHOLDERS' EQUITY OR THE PRICE OF THE COMPANY'S SECURITIES, HAS OCCURRED DURING THE MOST RECENT FISCAL