ACC Annual Report
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Stock Code: 1102 http://www.acc.com.tw http://emops.twse.com.tw ASIA CEMENT CORPORATION 2020 Annual Report Notice to readers This English version annual report is a summary translation of the Chinese version and is not an official document of the shareholders’ meeting. If there is any discrepancy between the English version and Chinese version, the Chinese version shall prevail. Printed on March 31, 2021 Spokesperson Headquarter and Plants Name: W.K. Chou Headquarter Title: Vice President Address: 30~ 31F, No.207, Sec. 2, Tel: 886-2-27378940 Dunhua South Rd., Da’an Dist., Taipei E-mail: [email protected] City 106, Taiwan Tel: 886-2-27338000 IR Contact & Deputy Spokesperson Name: Doris Wu Hsinchu Plant Title: Executive Vice President Address: No.109, Sec. 2, Zhongfeng Rd., Tel: 886-2-27378945 Hengshan Township, Hsinchu County E-mail: [email protected] 312, Taiwan Tel: 886-3-5931011 Stock Transfer Agent Oriental Securities Corporation Hualien Plant Address: 13F., No. 16, Xinzhan Rd., Address: No.125, Xinxing Rd., Xincheng Banqiao Dist., New Taipei City 220, Township, Hualien County 971, Taiwan Taiwan Tel: 886-3-8612101 Tel: 886-2-77531699 Website: http://www.osc.com.tw/ Auditors Deloitte & Touche Auditors: Xin Wei Tai and Yu Wei Fan Address: 20F., No. 100, Songren Rd., Xinyi Dist., Taipei City 110, Taiwan Tel: 886-2-27259988 Website: http://www.deloitte.com/ Overseas Securities Exchange London Stock Exchange Disclosed information can be found at http://www.londonstockexchange.com/ Singapore Exchange Disclosed information can be found at http://www.sgx.com/ Corporate Website http://www.acc.com.tw/ Table of Contents I REPORT TO SHAREHOLDERS ............................................................................................................................ 1 II COMPANY PROFILE ............................................................................................................................................. 9 2.1 DATE OF INCORPORATION: .......................................................................................................................................... 9 2.2 COMPANY HISTORY ................................................................................................................................................... 9 III CORPORATE GOVERNANCE REPORT ........................................................................................................ 13 3.1 ORGANIZATION ....................................................................................................................................................... 13 3.1.1 Organization Chart ..................................................................................................................................... 13 3.1.2 Major Corporate Functions ........................................................................................................................ 14 3.2 DIRECTORS AND MANAGEMENT TEAM ........................................................................................................................ 16 3.2.1 Directors ..................................................................................................................................................... 16 3.2.2 Major Shareholders of the Institutional Shareholders ............................................................................... 19 3.2.3 Major Shareholders of the Major Shareholders That Are Juridical Persons ............................................... 20 3.2.4 Professional Qualifications and Independence Analysis of Directors ......................................................... 25 3.2.5 Management Team .................................................................................................................................... 27 3.2.6 Remuneration of Directors, Supervisors, President, and Vice Presidents ................................................... 29 3.2.7 Employees Remuneration to Management Team ..................................................................................... 34 3.3 IMPLEMENTATION OF CORPORATE GOVERNANCE .......................................................................................................... 35 3.3.1 Board of Directors ...................................................................................................................................... 35 3.3.2 Other mentionable items: .......................................................................................................................... 36 3.3.3 Annual priorities of Audit committee ......................................................................................................... 37 3.3.4 Attendance of Audit committee ................................................................................................................. 37 3.3.5 Corporate Governance Execution Status and Deviations from “Corporate Governance Best-Practice Principles for TWSE/ TPEx Listed Companies” ............................................................................................ 42 3.3.6 The Composition, Duty, and Implementation Status of the Remuneration Committee ............................. 55 3.3.7 Corporate Social Responsibility .................................................................................................................. 58 3.3.8 Implementation Status of Ethical Management ........................................................................................ 64 3.3.9 The Training for Directors ........................................................................................................................... 71 3.3.10 The Training for Managers ....................................................................................................................... 72 3.3.11 The Execution Status of Internal Control System ..................................................................................... 74 3.3.12 Major Resolutions of Shareholders’ Meeting and Board Meetings ......................................................... 75 3.3.13 Resignation or dismissal of the chairman, president, accounting manager, finance manager, auditing manager, and R&D manager of the Company ........................................................................................... 76 3.4 INFORMATION OF CPA SERVICE FEE ........................................................................................................................... 77 3.5 RELEVANT LICENSES AND CERTIFICATES OBTAINED ABOUT TRANSPARENT FINANCIAL INFORMATION ........................................... 78 3.6 CHANGES IN SHAREHOLDINGS AND PLEDGE OF DIRECTORS, SUPERVISORS, MANAGERS, AND SHAREHOLDERS WITH MORE THAN 10% SHAREHOLDING ...................................................................................................................................................... 79 3.7 INFORMATION DISCLOSING THE RELATIONSHIP BETWEEN ANY OF THE COMPANY’S TOP 10 SHAREHOLDERS ............................. 81 3.8 SHAREHOLDING PROPORTION OF ACC TO INVESTEES ..................................................................................................... 87 IV CAPITAL FORMATION ..................................................................................................................................... 88 4.1 CAPITAL AND SHARES ............................................................................................................................................... 88 4.1.1 Capital Increase in the Past Five Years ....................................................................................................... 88 4.1.2 Capital ........................................................................................................................................................ 88 4.1.3 Shelf Registration: None ............................................................................................................................ 88 4.1.4 Shareholder Structure ................................................................................................................................ 88 4.1.5 Shareholding Distribution Status ............................................................................................................... 89 4.1.6 List of Major Shareholders ......................................................................................................................... 89 4.1.7 Market Price, Net Value, Earnings and Dividends per Share ...................................................................... 90 4.1. 8 Dividend Policy & Implementation Status ................................................................................................. 90 4.1.9 Effects on Business Performance and EPS Resulting From Stock Dividend Distribution ............................. 91 4.1.10 Employees’ Compensation and Directors’ and Supervisors’ Remuneration ............................................. 92 4.2 SUMMARY OF CORPORATE BONDS ............................................................................................................................. 93 4.3 SUMMARY OF ISSUED GDR ...................................................................................................................................... 99 4.4 STATUS ON EXECUTION OF CAPITAL UTILIZATION PLANS ................................................................................................. 99 I V OVERVIEW OF BUSINESS OPERATION .....................................................................................................