Chicony Electronics Co., Ltd. 2020 Annual Report
Total Page：16
File Type：pdf, Size：1020Kb
Stock Code: 2385 Annual Report is available at Company Website: http://www.chicony.com.tw/ Market Obervation Post System: http://mops.twse.com.tw Chicony Electronics Co., Ltd. 2020 Annual Report Printed on May 15, 2021 1. The names, title, telephone numbers, and e-mail addresses of the Spokesperson and Deputy spokesperson: Spokesperson: Name: Lin, Yu-Ling Title: Vice General Manager of the Financial and Administrative Department Telephone: +886-2-6626-6788 Deputy Spokesperson: Name: Yang, Wan-Ting Title: Director of Investor Relations Division of the Financial and Administrative Department Telephone: +886-2-6626-6788 Spokesperson email address: [email protected] 2. Headquarter, branch office and factories: Address of Headquarter: No. 69, Sec. 2, Guanfu Rd., Sanchong Dist., New Taipei City 241, Taiwan (R.O.C.) Phone number of Headquarter: +886-2-6626-6788 3. The name, address, website, and telephone number of the stock transfer agent: Name: CTBC Bank Address: 5F, No.83, Sec. 1, Chongcing S. Rd., Jhongjheng District, Taipei City 100, Taiwan (R.O.C.) Phone number: +886-2-6636-5566 (stock code: 2385) Website: http://ecorp.ctbcbank.com/cts/index.jsp 4. The names, office name, address, website, and telephone number of the verifying CPAs of the most recent financial report: CPAs: Chen, Chin-Chang / Weng, Shih-Jung Company: PricewaterhouseCoopers Taiwan Address: 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.) Phone number: +886-2-2729-6666 Website: http://www.pwc.tw/ 5. The name of the Exchange where the overseas securities are listed and the ethod for querying the information of the overseas securities: None 6. Company website: http://www.chicony.com.tw Chicony Electronics CO., Ltd. Table of Contents Page I. Letter to Shareholders 1 2020 Performance (including implementation results, financial revenue and expenditure, profitability analysis, research and development status) ............................ 1 2. 2021 Business Project Summary (macroeconomic environment, industry trend, guidelines for management, important production and marketing policies) .................. 1 3. Company development strategy and impact from external competition, laws and regulations, and the overall operating environment in the future .................................... 6 II. Company Profile 1. Date of Incorporation ...................................................................................................... 7 2. Company history and development................................................................................. 7 III. Corporate Governance Report 1. Organization System (including the job functions of major departments) ................... 13 2. Profiles and Remuneration (association with operationg performance) of the Directors, General Manager, Vice General Managers, Assistant Vice General Managers, Function Heads, and Branch Heads ............................................................ 16 3. Corporate Governance in action ............................................................................. …32 (1) Status on Implementation of Board of Directors .............................................. 32 (2) Status on Operation of Audit Committee Participation in the Operation of the Board of Directors ....................................................................................... 34 (3) The difference Between the Corporate Governance Implementation and the Corporate Governance Best Practice Principles for TWSE/GTSM-Listed Companies and Reasons.................................................................................... 38 (4) Remuneration Committee, Disclose its Organization, Function, and Operation ........................................................................................................... 49 (5) Fulfillment of Corporate Social Responsibility. Differences from “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies” and reasons from the differences ......................................... 53 (6) The Company’s Performance of Ethical Corporate Management and the Difference from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, and the reasons for the difference .......................................................................................................... 63 (7) How to Find the Corporate Governance Rules, Related Rules, and Regulations........................................................................................................ 71 (8) Other Important Information to Increase Understanding of Corporate Governance Operations ..................................................................................... 71 (9) Status of Implementation of Internal Control System (including Statement of Internal Control and Audit Report of CPA) .................................................. 72 (10) The Punishment Inflicted on the Company or Its Internal Personnel, or Any Disciplinary Penalty by The Company Against Its Internal Personnel for Violation of The Internal Control System ......................................................... 74 (11) Important Resolutions Made by the Shareholders’ Meeting and Board Meeting (including the implementation of the Shareholders' Meeting) ........... 74 (12) The Main Contents of Important Resolutions Passed by the Board of Directors Regarding in which Directors have Voiced Differing Opinions on the Record or in Writing.................................................................................... 77 (13) Summary of Resignation or Dismissal of Personnel (including the Chairman of Board, President, Financial Manager, Accounting Manager, Internal Audit Manager, Chief corporate governance officer and R&D Manager, etc.,) ................................................................................................... 77 (14) Certification of Employees Whose Jobs are Related to the Company’s Financial Information ........................................................................................ 77 4. Auditing fees for the CPAs ........................................................................................... 78 5. Replacement of CPAs ................................................................................................... 78 6. 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's Situation .................... 78 7. The Transfer of Equity Shares or Change in the Pledge of Shares under lien by the Directors, Managers, and Shareholders Holding More than 10% of the Shares .......... 79 8. Information on Relationships Among the Top Ten Shareholders ................................. 81 9. Comprehensive shareholding ratio................................................................................ 83 IV. Status of Financing 1. Capital and Shares ......................................................................................................... 84 (1) Sources of equity capital ................................................................................. 84 (2) Structure of shareholders .................................................................................. 85 (3) Dispersion of equity shares ............................................................................... 85 (4) List of major shareholders................................................................................. 86 (5) Market price, net value, earnings, and dividends per share and related information ........................................................................................................ 86 (6) Dividend Policy and Distribution of Earnings at this Shareholders’ Meeting ............................................................................................................. 87 (7) The effect of the proposal for paying stock dividends in the current session of the Shareholders Meeting on the operation performance, and earnings per share of the Company ................................................................................. 87 (8) Remuneration to the employees, Directors ..................................................... 87 (9) The repurchase of Company shares by the Company ..................................... 88 2. Information on Corporate Bonds .................................................................................. 88 3. Information on Preferred Shares ................................................................................... 88 4. Information on Overseas Depository Receipts ............................................................. 88 5. Information on Employee Stock Options (ESO) .......................................................... 88 6. Information on Restricted Stocks .................................................................................. 88 7. Status of New Share Issuance in Connection with Mergers and Acquisitions (including mergers, acquisitions, and divisions) or Transferred Company Shares ....... 88 8. The implementation of the fund utilization plan ........................................................... 88 V. Operational Highlights 1. Business Overview ........................................................................................................ 89 (1) Business Scope .................................................................................................. 89