Ta Yih Industrial Co.,Ltd

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Ta Yih Industrial Co.,Ltd Stock code :1521 TA YIH INDUSTRIAL CO.,LTD. 2020 ANNUAL REPORT Address :No. 11, Xinxin Road, Anping Industrial Zone, Tainan City Telephone :(06)2615151 June 22, 2021 Printed Designated information reporting website :https://sii.twse.com.tw Website for inquiry for this year : Stock Exchange Public Information Observatory :http://mops.tw se.com.tw Company website :http://www.tayih-ind.com.tw 1. Company Spokesman Name :Hung-Chi Wang Title :Senior Assistant General Manager, Finance department Contact Telephone :(06)2615151 ext. 220 Email :[email protected] 2. Company Acting Spokesman Name :Chun-Hao Wang Title :Assistant General Manager, Chairman office Contact Telephone :(06)2615151 ext. 248 Email :[email protected] 3. Address and telephone of Company and factory Address of Company and factory :No. 11, Xinxin Road, Anping Industrial Zone,Tainan City Telephone :(06)2615151 4. Contact information of agency handling shares transfer Name :CTBC Bank Address :No.83, 5th Floor, Section 1, Chongqing South Road, Taipei Website :www.ctbcbank.com Telephone :(02)66365566 5. Contact information of the certified public accountant for the most recent annual financial report Name of accounting firm :Deloitte Taiwan Independent accountant :Accountant Chi-Chen Li, Accountant Chao-Chin Yang Address :No. 189, 13th Floor, Section 1, Yongfu Road, Tainan City Website :www.deliotte.com.tw Telephone :(06)2139988 6. Name of any exchanges where the company's securities are traded offshore :None Method by which to access information on said offshore securities :None 7. Website of company :http://www.tayih-ind.com.tw Table of Contents 1‧To the shareholders’ r epor t 1 2‧Introduction of the Company 3 2-1.Date of Establishment 3 2-2.Company milestones 3 3‧Corporate Governance Report 6 3-1.Organizational system 6 3-2.Information on the company's directors, supervisors, president , vice p resident s, 7 deputy assistant general managers, and the supervisors of all the company’s divisions and branch units 3-3.Remuneration paid during the most recent fiscal year to directors, supervisors, 13 president, and vice presidents 3-4.The state of the company's implementation of corporate governance 23 3-5.Information on CPA professional fees 64 3-6.Information on replacement of certified public accountant 65 3-7.Where the company's chairman, president , or any managerial officer in charge of 65 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 3-8.Any transfer of equity interests and/or pledge of or change in equity interests by a 65 director, supervisor, managerial officer, or shareholder with a stake of more than 10 percent during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report 3-9.Relationship infor mation, if among the company's 10 largest shareholders any 66 one is a related party or a relative within the second degree of kinship of another 3-10.The total number of shares and total equity stake held in any single enterprise by 68 the company, its directors and supervisors, managers, and any companies controlled either directly or indirectly by the company 4‧Information on capital raising activities 69 4-1.Company Capital and shares 69 4-2.The section on company debts 73 4-3.The section on preferred shares 73 4-4.The section on global depository receipts 73 4-5.The section on employee share subscription warrants 73 4-6.The section on "new restricted employee shares” 73 4-7. The section on issuance of new shares in connection with mergers or acquisitions 73 or with acquisitions of shares of other companies 4-8. The section on implementation of the compan y's capital allocation plans 73 5‧An overview of operations 74 5-1.A description of the business 74 5-2.An analysis of the market as well as the production and marketing situation 76 5-3.The number of employees employed for the 2 most recent fiscal years, and during 82 the current fiscal year up to the date of publication of the annual report, their average years of service, average age, and education levels 5-4.Disbursements for environmental protection 82 5-5.Labor relations 82 5-6.Important contracts 85 6‧The company's financial status 87 6-1. Condensed balance sheets and statements of comprehensive income for the past 5 87 fiscal years 6-2.Financial analyses for the past 5 fiscal years 89 6-3.Supervisors' report for the most recent year's financial statement 94 6-4. Consolidate Financial statement for the most recent fiscal year 94 6-5.A parent company only financial statement for the most recent fiscal year, 94 certified by a CPA 6-6.If the company or its affiliates have experienced financial difficulties in the 94 most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, the annual report shall explain how said difficulties will affect the company's financial situation 7.Analysis of its financial position and financial per formance, and risks 95 7-1.Review and analysis of financial status 95 7-2.Review and analysis of financial performanc e 95 7-3.Analysis of cash flow 96 7-4.he effect upon financial operations of any major capital expenditures during the 96 most recent fisc al year 7-5.The company's reinvestment policy for the most recent fiscal year, the main 96 reasons for the profits/losses generated thereby, the plan for improving re -investment profitability, and investment plans for the coming year 7-6.Risk analysis and evaluation 97 7-7.Other important matters 100 8‧Special items 10 1 8-1.Information related to the company's affiliates 10 1 8-2.Where the company has carried out a private placement of securities during the 10 2 most recent fiscal year or during the current fiscal year up to the date of publication of the annual report 8-3. The subsidiaries holding or disposal of the company’s shares in the company 10 2 during the most recent fiscal year or during the current fiscal year up to the date of publication of th e annual report 8-4. Additional description of other matters 10 2 9.If any of the situations listed in Article 36, paragraph 3, subparagraph 2 of the 10 2 Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, such situations shall be listed one by one 2020 Consolidate Financial Statements 10 3 2020 Indivi dual Financial Statements 10 4 1‧The shareholders’ report 1-1.Business results for 2020 : 1-1-1.Review of business performance : Owing to the impact of COVID-19 pandemic, the Company's net operating income for 2020 was NT$ 4,797,165,000, a decrease of NT$593,031,000 (decreased by 11%) compared with NT$5,390,196,000 in 2019. In terms of net profit before tax, it was NT$ 178,629,000 in 2020, a decrease of NT$269,722,000 compared with NT$ 448,351,000 in 2019 (a decrease of 60.2%). In terms of net profit after tax, it was NT$ 159,750,000 in 2020, a decrease of NT$200,707,000 from the NT$ 360,457,000 in 2019. The earning per share in 2020 is NT$2.10. Unit:NT$ thousands Amount increasing Increase / Year 2020 2019 / decreasing Decrease % Net operating income 4,797,165 5,390,196 (-) 593,031 (-) 11.0% Net operating profit 186,734 411,978 (-) 225,244 (-) 54.7% Pre-tax income 178,629 448,351 (-) 269,722 (-) 60.2% Net income after tax 159,750 360,457 (-) 200,707 (-) 55.7% EPS after tax (NTD/share) 2.10 4.73 (-) 2.63 (-) 55.7% 1-1-2.Budget implementation :no financial forecast was released for 2020. 1-1-3.Analysis of financial revenue and expenditure and profitability : (1)Financial structure Debt to assets ratio :52.03% Long-term capital accounted for real estate, plant and equipment ratio :189.66% (2)Profitability Return on assets :4.43 % Return on assets :8.72% Return on equity :3.33 % Earnings per share :NT$ 2.10 1-1-4.Status of research and development (1)Research and development expenses for the past 2 years In 2019, the expenses were NT$ 199,992,000, which accounted for 3.71% of the net operating income. In 2020, the expenses were NT$ 178,836,000, which accounted for 3.73% of the net operating income. (2)On-going research and development projects : ①R&D and the mass production of Advanced headlights of motorcycles. ②R&D and the mass production of Mini LED BI PES headlights of motorcycles. ③R&D and the mass production of Microstructure optical application lamps. ④R&D and the mass production of Hyperboloid lens application lamps. ⑤R&D and the mass production of Millimeter wave transparent materials. ⑥R&D of Electronic ASPICE import. ⑦R&D of Adjustable lightness and low-energy LED headlights for MRT vehicles. ⑧Product development on Special LED light tube for rail vehicles. ⑨R&D of aerospace lighting. 1-2.Overview of Business Plan of 2021 : 1-2-1.Business strategy (1)With the customer-first spirit, expand business domestically and overseas. (2)Cultivate management and technical talents and optimize the product development system.
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