Annual Report of Chunghwa Post
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2019 Annual Report Of Chunghwa Post Pursue excellence, trusted forever CONTENTS I. Chairman’s Remarks ...................................................................................... 4 II. Business Report .............................................................................................. 6 I. 2019 Operation Results ....................................................................................................... 8 II. 2020 Outline of Operation Plan ........................................................................................ 9 III. Company Profile ........................................................................................ 11 I. History ................................................................................................................................. 12 II. Vision ................................................................................................................................. 13 III. Core Values ..................................................................................................................... 13 IV. System .............................................................................................................................. 13 IV. Organization .............................................................................................. 14 I. Organizational Structure .................................................................................................. 15 II. Information about Board of Directors and Supervisors, President, Vice Presidents, Department Heads and Managers of Various Branches ............................................ 18 V. Fulfilling Our Social Responsibility ............................................................ 21 I. Promoting Corporate Governance ............................................................................... 22 II. Maintaining Social Welfare ............................................................................................. 23 III. Developing Sustainable Environment .......................................................................... 25 IV. Protecting Our Clients’ Rights and Interests ................................................................ 27 V. Caring for Our Employees .............................................................................................. 29 VI. Reinforcing Information Disclosure and Other Related Services .............................. 31 VI. Capital Raising .......................................................................................... 32 I. Capital and Shares ........................................................................................................... 33 II. Financial Bonds ................................................................................................................ 34 IIII. Preferred Shares ............................................................................................................. 34 IV. Overseas Depository Receipts ...................................................................................... 34 V. Employee Stock Option Certificates ............................................................................. 34 VI. Mergers and Acquisitions of other Financial Institutions ............................................ 34 VII. Plans for Capital Investment and Utilization ............................................................... 34 2 VII. Operations Summary ............................................................................... 35 I. Scope of Business .............................................................................................................. 36 (I) Mail services ............................................................................................................... 38 (II) Savings services ........................................................................................................ 42 (III) Remittance services ................................................................................................. 47 (IV) Postal simple life insurance .................................................................................... 49 (V) Philately ..................................................................................................................... 53 (VI) Agential Business ..................................................................................................... 57 (VII) Asset management ............................................................................................... 58 (VIII) Capital utilization ................................................................................................... 60 II. Employee Composition ................................................................................................... 61 III. Labor-Management Relations ...................................................................................... 63 IV. IT Facilities ........................................................................................................................ 64 VIII. Financial Overview ................................................................................. 66 I. Financial Highlights ........................................................................................................... 67 II. Condensed Balance Sheet and Income Statement Data for the Past 5 Years ....... 69 III. Financial Analysis for the Past 5 Years ........................................................................... 71 2019 Annual Report of Chunghwa Post 3 I Chairperson’s Remarks Looking back at 2019, affected by the US-China trade disputes and rising geopolitical risks, the momentum of the global economy has weakened. However, with the concerted effort of all colleagues, Chunghwa Post has still managed to attain the goal of surplus transfer to the Treasury. At the onset of 2020, the Severe Pneumonia with Novel Pathogens (COVID-19) has spread all over the globe. To align with national epidemic prevention policies, Chunghwa Post has undertaken the task of distributing resources for epidemic prevention and won recognition from all sectors. President Tsai Ing-wen and the Premier Su Tseng-chang in turn offered encouragement and expressed approval in person. As the epidemic ebbs, Chunghwa Post continues to undertake the mission of transporting, distributing, collecting, and cashing triple stimulus vouchers to help "rescue" and "revitalize" the economy. Chunghwa Post has played a role and served various purposes during different periods of time. All colleagues in the company, both enthusiastic and persevering, take pride in being the guardian for the health and welfare of all citizens. The pandemic has induced changes in people's lifestyle and consumption pattern while accelerating the progression of digitization, which in turn expedites adjustments in the industry structure as well as the operation pattern of the enterprise. To keep abreast of international trends as well as modern developments, and to become more competitive, Chunghwa Post continues to optimize digital transformation by making an inventory of all available places for warehousing and mail forwarding to develop a network of "smart 4 Pursue excellence, trusted forever Chairperson Wu, Hong-Mo logistics"; to form cross-industry alliance and expand the ecosphere of "digital finance" by expediting the progress of "Postal Co-branded Visa Debit Card" that will have an increased scope of services and become a handy "everyday card"; and to ensure a comprehensive life and economic security for citizens by designing life insurance products for all age groups and any type of groups. Meanwhile, Chunghwa Post also helps young and small farmers nationwide market agricultural specialties and produce via postal channels for place-making and revitalizing the development of tourism. To create asset value, Chunghwa Post has strategically activated real estate assets by turning post offices into a multi-purpose place for commerce and public welfare with cinemas, gyms, offices, accommodation facilities, and long-term care centers, etc. Moreover, Chunghwa Post has also actively participated in urban renewal and assisted in the development of national innovation, creativity, and finance center for "Taipei City Western District Gateway Project" to boost local economy. To increase operational fitness and improve the efficiency and performance of various businesses and services, Chunghwa Post also takes initiative to cultivate and nurture talent. In addition to recruiting professional talent that meets the needs of business development, there are more on- the-job training opportunities for colleagues to sharpen their skills and develop second expertise, which enriches the talent pool for the Company. Moreover, supervisors are encouraged to be considerate, respectful, empathetic, and caring about the rights and welfare of staff and to create a warm family at the postal company. Lastly, I would love to encourage all of my colleagues to undertake the important mission of following the past and heralding the future with the spirit and mindset of honesty, bravery, simplicity, and perseverance as usual, to adhere to the post and develop neighborly relations with the community, to fulfill corporate social responsibility, and to continue to serve citizens with professionalism, integrity, and efficiency. 2019 Annual Report of Chunghwa Post 5 II Business Report 8 I. 2019 Operation Results 9 II. 2020 Outline of Operation Plan 6