Everlight Electronics Co., Ltd. 2019 Annual Report
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: Stock Code 2393 Everlight Electronics Co., Ltd. 2019 Annual Report Taiwan Stock Exchange Market Observation Post System: http:// mops.twse.com.tw Printed on May 26, 2020 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 and Chinese versions, the Chinese version shall prevail. 1 Corporation Information 1. 一、Spokesperson & Deputy Spokesperson Spokesperson Name: Li Yu Huang Title: Vice President TEL: +886-2-2685-6688 Email: [email protected] Deputy Spokesperson Name: Justin Ding Title: Director TEL: +886-2-2685-6688 Email: [email protected] 2. Headquarters, Branches and Plant Corpotate Headquarters No.6-8, Chung-Hua Rd., Shu-Ling District, New Taipei City 23860, Taiwan, R.O.C. TEL: +886-2-2685-6688 Branch No. 35, Guoguang Ln., Yuanli Township, Miaoli County 358, Taiwan (R.O.C.) TEL: +886-37-740-776 3. Common Share Transfer Agent and Registrar Company: The Transfer Agency Department of Horizon Securities Co., Ltd. ADD: B2F., No. 97, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City 106, Taiwan (R.O.C.) Website: www.capital.com.tw TEL: +886-2-2702-3999 4. Auditors Company: KPMG Auditors: Ou,Yao-Chun, Lo,Jui-Lan ADD: 68F., No. 7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.) Website: www.kpmg.com.tw TEL: +886-2-8101-6666 5. Overseas Securities Exchange: N/A 6. Corporate Website Website: http://www.everlight.com 2 Contents 1. Letter to Shareholders ....................................................................................................................... 1 2. Corporate Introduction ..................................................................................................................... 3 2.1 Date of Incorporation: September 19, 1996. ............................................................................................. 3 2.2 Company History ...................................................................................................................................... 3 3. Corporate Governance Report.......................................................................................................... 6 3.1 Organization .............................................................................................................................................. 6 3.2 Information about Directors, supervisors, president, vice presidents, assistant vice presidents, and department and branch managers ............................................................................................................ 9 3.3 Remuneration Paid to Directors, General Manager and Vice President in the most recent year ............ 20 3.4 Implementation of Corporate Governance .............................................................................................. 24 3.5 Audit Fee ................................................................................................................................................. 62 3.6 Replacement of CPAs:None .................................................................................................................... 62 3.7 Information on the Company’s Chairman, President, 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 certified public accountant or at an affiliated enterprise of such accounting firm: None. ................................... 62 3.8 Any transfer / pledge / Changes in Shareholding of Directors, Supervisors, Managers, and Major Shareholders holding a stake of greater than 10 percent ....................................................................... 63 3.9 Relationship among the Top Ten Shareholders ....................................................................................... 64 3.10 The total number of shares and total equity stake held in any single enterprise by theCompany, its directors and supervisors, managers, and any companies controlled either directly or indirectly by the Company ......................................................................................................................................... 65 4. CAPITAL OVERVIEW ................................................................................................................... 66 4.1. Capital and Shares ................................................................................................................................. 66 4.2 Issuance of Corporate Bonds:................................................................................................................. 73 4.3 Preferred Shares: None. .......................................................................................................................... 74 4.4 Issuance of Overseas Depositary Shares:None ...................................................................................... 74 4.5 Status of Employee Stock Option Plan: ................................................................................................. 74 4.5.1 Issuance of Employee Stock Options .................................................................................................. 74 4.6 Status of New Restricted Employee Shares: None................................................................................. 76 4.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions: None. .......................... 76 4.8 Financing Plans and Implementation: .................................................................................................... 77 5. Operational Highlights..................................................................................................................... 79 5.1 Business Activities ................................................................................................................................. 79 5.2 Overview of the market and production ................................................................................................. 96 5.3 Human Resources ................................................................................................................................. 103 5.4 Information of environment protection ................................................................................................ 103 5.5 Relationship between the management and the labor .......................................................................... 106 5.6 Material Contract ................................................................................................................................... 111 6. Financial Information ..................................................................................................................... 112 6.1 Five-Year Financial Summary .............................................................................................................. 112 6.2 Auditors’ Opinions from 2015 to 2019 ................................................................................................. 116 6.3 Audit Committee’s Report for the Most Recent Year ........................................................................... 121 6.4 Latest Audited Annual Financial Report .............................................................................................. 122 6.5 Latest Audited Cosolidated Fiancial Report ......................................................................................... 220 6.6 In the most recent year and as of the date of publication of the annual report, if the Company and its affiliated companies had any difficulties in financial turnover, the impact of financial status should be stated: None ......................................................................................................................... 319 7. Review of Financial Conditions, Financial Performance, and Risk Management ................... 320 3 7.1 Analysis of Financial Performance ................................................................................................... 320 7.2 Analysis of Financial Performance ................................................................................................... 321 7.3 Analysis of Cash Flow .......................................................................................................................... 321 7.4 Major Capital Expenditure Items: None .............................................................................................. 322 7.5 Investment Policy in the Last Year, Main Causes for Profits or Losses, Improvement Plans and Investment Plans for the Coming Year: ............................................................................................... 322 7.6 Risk Management ................................................................................................................................. 324 7.7 Other Major Items: ............................................................................................................................ 329 8. Special Disclosure ........................................................................................................................... 335 8.1 Summary of Affiliated Companies ....................................................................................................... 335 8.2 Private Placement Securities in the Most Recent Years ....................................................................... 346 8.3 The