An-Shin Food Services Co., Ltd. An-Shin Food Services Co., Ltd
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Stock Code: 1259 AN-SHIN FOOD SERVICES CO., LTD. AN-SHIN FOOD SERVICES CO., LTD. 2018 ANNUAL REPORT This Annual Report may be found at: Market Observation Post System (MOPS) http://mops.twse.com.tw Website of the Company: http://www.mos.com.tw Printed on March 31, 2019 I. Name, job title, contact telephone and e-mail address of spokesman and deputy spokesman of the Company: Spokesperson Deputy Spokesperson Name: Shih, Chi-Yin Name: Ho, Chi-Yin Title: Assistant Vice President Title: Special Assistant of Chairman Telephone number: (02) 2567-5001 Telephone number: (02) 2567-5001 E-mail address: [email protected] E-mail address: [email protected] II. Address and telephone number of the head office, branch and factory: Address of the head office: 8F., No.156-1, Songjiang Rd., Zhongshan Dist., Taipei City 104, Taiwan Telephone number: (02) 2567-5001 Address and telephone number of the branch: Kindly refer to A. Principal Business Activities of (1) Scope of Business in Ⅴ. OPERATING HIGHLIGHTS (Page 88) Factory: N/A III. Name, address, website and telephone number of the stock agency: Name: Registrar Agency Department of Capital Securities Website: https://www.capital.com.tw Corporation Address: B2, No.97, Sec. 2, Dunhua S. Rd., Daan Dist., Telephone number: (02) 2702-3999 Taipei City 10601, Taiwan IV. Name of certified public accountant (hereinafter referred to as “CPA”) who audited the latest annual financial report and name, address, website and telephone number of this CPA firm: Name of CPA: Chih, Ping-Chun and Wu, Yu-Lung Name of CPA firm: PricewaterhouseCoopers (PwC) Taiwan Website: http://www.pwc.tw Address: 27F., No.333, Sec. 1, Keelung Rd., Xinyi Dist., Telephone number: (02)2729-6666 Taipei City 110, Taiwan V. Name of the overseas stock exchange where the Company’s overseas securities are listed and inquiry method for information regarding such overseas securities: N/A VI. Website of the Company: http://www.mos.com.tw Table of Contents Pages I. LETTER TO SHAREHOLDERS .............................................................................................. 1 II. COMPANY PROFILE ............................................................................................................. 3 1. Date of Establishment: ...................................................................................................... 3 2. Company Profile ............................................................................................................... 3 III. CORPORATE GOVERNANCE REPORT ............................................................................. 10 1.Organization System .......................................................................................................... 10 2.Information about the Directors, Supervisors, President, Vice President, Assistant Vice President, and Head of Department and Branch ................................................................... 13 3.The Remuneration Paid to the Director, Supervisor, President and Vice President in the Prior Year .............................................................................................................................. 22 4.Implementation of corporate governance .......................................................................... 29 5.Information about the fees for the CPA ............................................................................. 73 6.Information about the change of the CPA .......................................................................... 74 7.The Company’s Chairman, President, officer in charge of financial or accounting affairs having served in the firm where the CPA serves or its affiliated enterprise in the prior year ................................................................................................................. 74 8.In recent fiscal year and as of the date of this Annual Report, the transfer or pledge of hares by the directors, supervisors, officers and shareholders holding more than 10% of the Company’s total issued and outstanding shares .................................................. 74 9.Information of the top ten shareholders, being related parties, spouse or relatives within the second degree of kinship among themselves .......................................................... 77 10.The number of shares of an enterprise held by the Company, the Company’s directors, supervisors and officers and the enterprises controlled by the Company directly or indirectly, and the consolidated shareholding percentage ............................................. 78 IV. STATUS OF FUNDING ......................................................................................................... 79 1. Capital and Shares ............................................................................................................. 79 2. Issuance of corporate bonds .............................................................................................. 87 3. Issuance of Preferred Stock .............................................................................................. 87 4. Issuance of Overseas Depository Receipts ....................................................................... 87 5. Issuance of Employee Stock Options ............................................................................... 87 6. Issuance of Employee Restricted Shares .......................................................................... 87 7. Issuance of New Shares for Mergers and Acquisitions ..................................................... 87 8. Implementation of Capital Utilization plan ...................................................................... 87 V. OPERATING HIGHLIGHTS ................................................................................................... 88 1. Business Activities ............................................................................................................ 88 2. Market Profile and Production and Sales .......................................................................... 107 3. Employee Statistics ........................................................................................................... 120 Table of Contents Pages 4. Environmental Expenses ................................................................................................... 121 5. Labour Relations ............................................................................................................... 123 6. Material Contracts ............................................................................................................. 129 VI. FINANCIAL HIGHLIGHTS .................................................................................................. 130 1.Condensed Balance Sheet and Statement of (Comprehensive) Income in the Most Recent 5 Years ....................................................................................................................... 130 2. Financial Analysis in the Most Recent 5 Years ................................................................. 135 3. Supervisors’ Review Report of the Financial Statements in the Most Recent Year ......... 138 4. Financial Statements in the Most Recent Year .................................................................. 138 5. Individual Financial Statements of the Company Audited by the CPA ............................ 138 6. Summary of any Financial Difficulty of the Company or Its Affiliates in the Most Recent Year and Impact of such Difficulty on the Company ........................................ 138 VII. DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND FINANCIAL PERFORMANCE; RISK FACTORS .................................................................................... 139 1. Financial Condition ........................................................................................................... 139 2. Financial Performance ...................................................................................................... 141 3. Cash flow .......................................................................................................................... 143 4. Impact of Significant Capital Expenditures in the Most Recent Year on the Financial and Operating Conditions of the Company ........................................................................... 144 5. Re-investment Policy of the Most Recent Year, Reasons for Profit (Loss), Improvement Plan and Investment Plan for the Following Year .................................. 144 6. Analysis and Evaluation of Risk Factors .......................................................................... 145 7. Other Material Items ......................................................................................................... 150 VIII. SPECIAL DISCLOSURES .................................................................................................. 151 1. Group Company Information ............................................................................................ 151 2. Any Private Placement of Securities within the Latest Fiscal Year and as of the Date of the Annual Report ............................................................................................................. 154 3. Any Share Ownership and Disposal of Shares of the Company by Subsidiaries within the Latest Fiscal Year and as of the Date of the Annual Report ............................................ 154 4. Additional Information Required to be Disclosed ...........................................................