Annual Report 2013
Total Page:16
File Type:pdf, Size:1020Kb
Stock Code 2317 HON HAI PRECISION INDUSTRY CO., LTD. Annual Report 2013 Annual Report Website Market Observation Post System: http://mops.twse.com.tw Company Website: http://www.foxconn.com.tw Printing Date: April 30, 2014 WorldReginfo - 99f63593-5703-4942-b74d-dc8c07c0d030 THIS IS A TRANSLATION OF THE 2013 ANNUAL REPORT (THE “ANNUAL REPORT”) OF HON HAI PRECISION INDUSTRY CO., LTD. (THE “COMPANY”). THIS TRANSLATION IS INTENDED FOR REFERENCE ONLY AND NOTHING ELSE, THE COMPANY HEREBY DISCLAIMS ANY AND ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION. THE CHINESE TEXT OF THE ANNUAL REPORT SHALL GOVERN ANY AND ALL MATTERS RELATED TO THE INTERPRETATION OF THE SUBJECT MATTER STATED HEREIN. WorldReginfo - 99f63593-5703-4942-b74d-dc8c07c0d030 I. Spokesperson: Deputy Spokesperson: Name: Simon Hsing Name: Wenmin Chu Title: Spokesperson Title: Director of Public Relations Office Tel: (02)2268-3466#3629 Tel: (02)2268-3466#3869 E-mail: [email protected] II. Contact information of the head office, branch offices and factories Head office Add: No. 66, Zhongshan Road, Tucheng Industrial Zone, Tucheng District, New Taipei City Tel: (02)2268-3466 Hsinchu Science Park Branch Office Add: 5F-1, No. 5, Hsin-an Road, Hsinchu Science and Industrial Park, East Area, Hsinchu City Tel: (03)578-4975 Neihu Branch Office Add: 1F-11F, No. 32, Jihu Road, Neihu District, Taipei City Tel: (02)2799-6111 California (US) Branch Office Add: 288 S. Mayo Ave City of Industry, CA 91789 U.S.A. Tel: 1-714-680-2066 Huyue Factory Add: No. 2, Zihyou Street, Tucheng Industrial Zone, Tucheng District, New Taipei City Tel: (02)2268-3466 Minsheng Factory Add: No. 4-1, Minsheng Road, Tucheng Industrial Zone, Tucheng District, New Taipei City. Tel: (02)2267-6511 Dingpu No. 1 Factory Add: No. 53, Section 4, Zhongyang Road, Tucheng District, New Taipei City Tel: (02)2268-3466 Dingpu No. 2 Factory Add: 2F, No. 53, Section 4, Zhongyang Road, Tucheng District, New Taipei City Tel: (02)2268-3466 Dingpu No. 5 Factory Add: 4F, No. 53, Section 4, Zhongyang Road, Tucheng District, New Taipei City Tel: (02)2268-3466 WorldReginfo - 99f63593-5703-4942-b74d-dc8c07c0d030 III. Share Transfer Agency Name: Grand Fortune Securities Co., Ltd. Address: 3F, No. 51, Section 1, Minsheng East Road, Taipei City Tel: (02)2562-1658 Website: http://www.gfortune.com.tw IV. Contact information of the Certified Public Accountants for the Latest Financial Repot Name: Hsu, Yong-jian, Xue, Ming-ling CPA Firm: Pricewaterhouse Coopers (PwC) Taiwan Address: 27F, No. 333, Section 1, Keelong Road, Taipei City Tel: (02)2729-6666 Website: http://www.pwc.tw V. Overseas trade places for listed negotiable securities London Stock Exchange: http://www.londonstockexchange.com VI. Company Website: http://www.foxconn.com WorldReginfo - 99f63593-5703-4942-b74d-dc8c07c0d030 Table of Contents I. Letter to Shareholders .............................................................................................................. 2 II. Company Introduction .............................................................................................................. 3 A. Founding date: February 20, 1974 ............................................................................................... 3 B. Formation History ....................................................................................................................... 3 III. Corporate Governance Report ................................................................................................. 9 A. Organization ................................................................................................................................ 9 B. Implementation of corporate governance .................................................................................. 32 C. Information on Accountants’ Fees ............................................................................................ 50 D. Alternation of CPA .................................................................................................................... 51 E. The Company’s chairman, general manager, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its CPA or at an affiliated enterprise: .......................................................... 52 F. Transfer & pledge of stock equity by directors, supervisors, managerial officers and holders of 10% or more of company shares: ............................................................................. 53 G. Information on relation among top ten shareholders ................................................................. 55 H. Combined shareholding percentage ........................................................................................... 56 IV. Company Shares and Fund Raising ....................................................................................... 57 A. Company capital and shares ...................................................................................................... 57 B. Section on Corporate Bonds ...................................................................................................... 66 C. Preferred Shares (with warrants): .............................................................................................. 73 D. Global Depository Receipts (GDR) ........................................................................................... 73 E. Subscription of warrants for employees: ................................................................................... 74 F. Name of managers holding warrants for employees and top ten employees in terms of subscription of warrants, and the acquisition status: ................................................................. 75 G. Subscription of new shares for employee restricted stocks: ...................................................... 75 H. Name of managers holding the new shares for employee restricted stocks and top ten employees in terms of subscription of the new share, and the acquisition status: ..................... 75 I. Issuance of new shares for merging and transferring the stocks of other companies: ............. 75 J. Implementation of fund usage plan: .......................................................................................... 75 V. Operational Highlights ............................................................................................................ 76 A. Business Activities .................................................................................................................... 76 B. Production and Sales Status ....................................................................................................... 78 C. Information on Environmental Protection Costs ....................................................................... 81 D. Labor Relations ......................................................................................................................... 82 VI. Financial Standing ................................................................................................................... 87 A. Most Recent 5-Year Concise Financial Information ................................................................. 87 B. Most Recent 5-Year Financial Analysis .................................................................................... 91 C. Audit Report by Supervisors ..................................................................................................... 95 D. 2012 Financial Statements Consolidated With Subsidiaries Audited by CPA .......................... 97 VII. Financial Analysis .................................................................................................................. 287 A. 2013 vs. 2012 Financial Analysis ............................................................................................ 287 B. 2013 vs. 2012 Operating Result Analysis ............................................................................... 287 C. Cash Flow Analysis ................................................................................................................. 288 VIII. Special Notes .......................................................................................................................... 289 A. Consolidated Financial Statements of Affiliates ..................................................................... 289 B. Affiliated Companies Reports: ................................................................................................ 290 WorldReginfo - 99f63593-5703-4942-b74d-dc8c07c0d030 I. Letter to Shareholders “Change” shall be the watchword we used to describe the global political, economic and industrial circumstance in the past year. The IMF (International Monetary Fund) downgraded global economic growth rate six times within a year. This shows that the economic recovery strength is far behind our expectations. The changes are also more difficult to be predicted. The Company has entered its 40th anniversary since its founding. In an environment of such dramatic change, we are proud of our high consolidated revenue and profit figures in the last fiscal year. I would like to thank all my colleagues, partners, clients, and suppliers for their confidence in us. I also would like to thank all shareholders for their long-term support of the Company. In reviewing the 2013 global economic environment, mature markets such as the U.S. and Japan have shown progress under governmental