2012 Annual Report Sino-American Silicon Products Inc
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Stock Code:5483 Sino-American Silicon Products Inc. 2012 Annual Report Issue Date: May 16, 2013 Information website: http://newmops.twse.com.tw I. Company Spokesperson: 1. Spokesman Name: Simon Tai Position: Finance Manager Tel:+886-3-577-2233 E-mail: [email protected] 2. Deputy spokesperson: Name: CW Lee Position: Strategic Planning Manager Tel:+886-3-577-2233 E-mail: CWLee @saswafer.com II. Address and Telephone Number of The Company Headquarter, Subsidiaries, and Plants 1. Company Headquarter Address: 4F, No.8, Industrial East Road 2, Science-Based Industrial Park, Hsinchu, Taiwan Tel: +886-3-577-2233 Fax: +886-3-578-1706 2. Chunan Plant I Address: No. 21, Kejung Rd., Chunan, Miaoli County, Hsinchu Science Park, Taiwan Tel: +886-37-582533 Fax: +886-37-580206 3. Chunan Plant II Address: No. 6, Kejung Rd., Chunan, Miaoli County, Hsinchu Science Park, Taiwan Tel: +886-37-582533 Fax: +886-37-580206 4. Subsidiaries and Plants Name: GlobalWafers Co., Ltd. Address: No.8, Industrial East Road 2, Science-Based Industrial Park, Hsinchu, Taiwan Tel: +886-3-577-2255 Fax: +866-3-578-1706 III. Stock Transfer Agency Agency name: Stock Agency Department, Yuanta Securities Address: B1, No. 210, Sec. 3, Chengde Rd., Taipei, Taiwan Tel: +886-2-2586-5859 Website: http://www.yuanta.com.tw/ IV. External Auditor Name of Accounting Firm: KPMG Taiwan Name of CPAs: Tseng, Mei-Yu, Chen, Chien-Chen Address: 68F, No. 7, Sec. 5, Hsinyi Rd., Taipei, Taiwan Tel: +886-2-8101-6666 Website: http://www.kpmg.com V. Global Depositary Receipt (GDR) Agency Luxembourg Stock Exchange How to Query Website: http://www.bourse.lu VI. Company Website http://www.saswafer.com Table of Contents I. Letter to Shareholders .................................................................................................. 1 II. Company Profile .......................................................................................................... 5 2.1 Date of Incorporation................................................................................................................... 5 2.2 Major Business ............................................................................................................................. 5 2.3 Corporate Milestones .................................................................................................................. 5 III. Corporate Governance ............................................................................................... 8 3.1 Organization Structure ................................................................................................................. 8 3.2 Information on the Company’s Directors, Supervisors, President, Vice President, Assistant Vice President, and The Supervisors of All The Company’s Divisions and Branch Units ............................................................................................................................... 10 3.3 Implementation of Corporate Governance ............................................................................... 24 3.4 Information Regarding Audit Fees ............................................................................................. 47 3.5 Information on Replacement of Independent Auditors in the Last Two Years and Thereafter ................................................................................................................................... 47 3.6 The Chairman, President, Finance or Accounting Manager Who Has Worked in the Accounting Firm or Affiliates in the Most Recent Year, the Name, Position and the Service Period Shall Be Disclosed .............................................................................................. 49 3.7 Changes in Shareholding of Directors, Supervisors, Managers and Major Shareholders in Last Year and as of the Date of this Annual Report .................................................................. 49 3.8 Relationship Information of the Top 10 Shareholders among Who are Related Parties, as Defined in the Statement of Financial Accounting Standard NO.6. .................................... 51 3.9 Total Numbers and Equity of Shares Held In any Single Enterprise by the Company, Directors, Supervisors, Managers and Any Companies Controlled Either Directly or Indirectly by the Company ......................................................................................................... 52 IV. Capital Overview ...................................................................................................... 53 4.1 Capital and Shares ...................................................................................................................... 53 4.2 Status of Corporate Bonds ......................................................................................................... 59 4.3 Status of Preferred Stocks.......................................................................................................... 59 4.4 GDR Issuance .............................................................................................................................. 60 4.5 Employee Stock Options ............................................................................................................ 61 4.6 Status of New Shares Issuance of Limited Stocks for Employees ............................................ 61 4.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions ....................... 63 4.8 Financing Plans and Implementation ........................................................................................ 63 V. Operational Highlights............................................................................................... 67 5.1 Business Activities ...................................................................................................................... 67 5.2 Market and Sales Overview ....................................................................................................... 80 5.3 Human Resources ....................................................................................................................... 88 5.4 Environmental Protection Expenditures ................................................................................... 88 5.5 Labor Relations ........................................................................................................................... 90 5.6 Important Contracts ................................................................................................................... 95 VI. Financial Information ............................................................................................... 97 6.1 Five-Year Financial Summary ..................................................................................................... 97 6.2 Five-Year Financial Analysis ....................................................................................................... 99 6.3 Supervisors’ Report in the Most Recent Year ......................................................................... 104 6.4 Standalone Financial Statements for Most Recent Year ........................................................ 105 6.5 Audited Consolidated Financial Statements for Most Recent Year ....................................... 164 6.6 The Impact on the Company’s Financial Status in Cases where the Company or its Affiliates have Financial Difficulties ........................................................................................ 228 VII. Review of Financial Conditions, Operating Results, and Risk Management ......... 229 7.1 Analysis of Financial Status ...................................................................................................... 229 7.2 Analysis of Operating Results .................................................................................................. 230 7.3 Analysis of Cash Flow ............................................................................................................... 231 7.4 Major Capital Expenditure Items influence on Financial Business ........................................ 232 7.5 Recent Reinvestment Policy, Major Reasons for Profits or Losses, Improvement Plan and Investment Plan for the Following Year ........................................................................... 232 7.6 Analysis of Risk Management .................................................................................................. 233 7.7 Other Major Events .................................................................................................................. 237 VIII. Special Disclosure ................................................................................................. 238 8.1 Affiliated Businesses ................................................................................................................ 238 8.2 Private Placement Securities in the Most Recent Years ......................................................... 244 8.3 The Shares in the Company Held or Disposed of By Subsidiaries in the Most Recent Years ......................................................................................................................................... 244 8.4 Other Necessary Supplement .................................................................................................. 244 8.5 Any Events And as of the Date of this Annual Report that Had Significant Impacts on Shareholders’ Rights or Security Prices as Stated in Item 2 Paragraph 2 of Article 36 of