Aa63741263fba023aff4b56ece2

董事會辦公室副總經理陳婉玲會計處協理張淑瓊 Vice General President, Board of Directors office Chen, Wan-Ling Assistant Vice President, Accounting Section of Finance Department Jhang, Shu-Cyong Content 005 I Letter to Shareholders 1. 2019 Business Report 2. 2020 Operation Plan 3. Future Development Strategies 4. Influence from External Competition, Regulations and Macro-operating Environment 5. Conclusion 013 II Company Profile 1. Date of Establishment 2. Company History 019 III Corporate Governance Report 1. Organization 2. Directors, Supervisors and ManagementTeam 3. Implementation of Corporate Governance 4. Information of Fees to CPA 5. Information on AccountantChange 6. The Chairman, President and Financial or Accounting Manager of the Company who had Worked for the Independent Auditor or the Related Party in the PastYear 7. State of Changes to Shareholdings Held by Directors, Supervisors, Presidents and Major Shareholders 8. Information disclosing the spouse, kinship within second degree and relationship between any of the top ten shareholders 9. The Shareholding of the Company, Director, Supervisor, President and the Business that is Controlled by the Company Directly or Indirectly on the Invested Company 055 IV Capital Raised 1. Capital & Shares 2. Corporate bonds 3. Preferred stocks 4. Depositary Receipts 5. Employee Stock Options 6. New Shares to Employees with Restricted Rights 7. Status of New Shares Issuance in Connection with Mergers and Acquisitions 8. Financing Plans and Implementation 2 Intergenerational×Happiness×Health Maintenance Village TLDC 2019 ANNUAL REPORT 067 V Business Activities 1. Business Scope 2. Market and Sales Overview 3. Employee Information 4. Expenditures on Environmental Protection (General Management Department) 5. Labor Relations 6. Important Contracts 083 VI Financial Information 1. Condensed balance sheet, income statement and auditors' opinions for the last five years 2. Financial Analysis of the Last Five Years 3. 2019 Audit Committee's Report 4. 2019 Financial Statements 5. 2019 Consolidated Financial Statements of The Parent Company and Subsidiaries Certified by CPA 6. Financial turnover difficulties in the company and its affiliated companies 241 VII Review of Financial Conditions and Performance, Operating Results, and Risk Management 1. Financial Condition 2. Financial Performance 3. Cash Flow 4. Effect of Major Capital Expenditures in 2019 on Financial Operations 5. 2019 Investment Policy, Main Causes for Profits or Losses, Improvement Plans and the Investment Plans for the Coming Year 6. Risk Management 7. Other Important Matters 249 VIII Special Disclosures 1. Summary of Affiliated Companies 2. Private Placement of Securities in Years 2019 to present 3. The Shares in the Company Held or Disposed by Subsidiaries in Years 2019 to present 4. Other Supplementary Matters 5. Matters that Have Significantly Affected Shareholders' Equity and Prices of Securities Pursuant to Subparagraph 2, Paragraph 3, Article 36 of Securities Exchange Law in Years 2019 to present 3 I. Letter to Shareholders 1. 2019 Business Report 2. 2020 Operation Plan 3. Future Development Strategies 4. Influence from External Competition, Regulations and Macro-operating Environment 5. Conclusion With the full support of all shareholders and directors and the effort of all employees in 2019, Taiwan Land Development Corporation Group’s (hereinafter referred to as “TLDC” or the “Group”) New Paradiso in Hualien attracted over 3 million visitors throughout the year. The Group also continued to grow its operations of Kinmen Wind Lion God Shopping Street, began construction of the Hualien LOHAS Creative Park and hot spring hotel and service apartment in Hsinchu, as well as continued to promote its development projects and industrial parks in Hualien and Taichung, thereby boosting sales and value of assets owned by the Group in various areas and maintaining a stable growth of its business. For 2019, the Group reported consolidated revenue of NT$390 million and after-tax earnings per share of NT$0.4, mainly derived from retail and recreational business. Based on the operating philosophy of a sharing economy, the Group continues to integrate green, intelligent, and cultural creation with local living environments to develop product characteristics. Meanwhile, digital entertainment, preventive medicine, leisure and sightseeing, and cultural creative industries have been introduced to drive investments, boost productivity and increase job opportunities, so as to promote local development and achieve asset revitalization. In response to international expansion, the Group has adopted new economic models, such as circular economic approach and sharing economy. A next-generation digital entertainment center positioned as a technology, art, trend, and culture amusement park is being built with diverse presentation methods, including AR, VR, video, music, competition, live broadcast, extreme activities, and remote control, with the main part being New Paradiso in Huilan Bay, Hualien. In the future, the Group will also integrate the utilization of large land to develop warehousing and energy, coupled with life technology (in combination of AI and physics) and biomedicine techniques, to launch LOHAS Creative Park and Biotech Park in Hualien. Moreover, it will partner with the local Tzu Chi Hospital to develop life science, which will support the biomedicine services to be provided in the LOHAS Creative Park. As for the Biotech Park, the Group mainly recruit bio-technology merchants specializing in antibiotics, hypha technology, Yakult, and extracts of Chinese herbal medicine. The Group will integrate digital technologies with bio-technology, apply digital computing, 3D photography, digital storage, and computer operation to conduct preventive healthcare, thereby establishing a preventive medical enterprise. The goal is to bring health to Huilien. In 2020, the Group has been gradually expanding its territory in the sightseeing business. It now has bases in such locations as Hualien and Kinmen, and currently operates the Kinmen Wind Lion God Shopping Street, the Starbucks housed in shipping containers, and New Paradiso. The Group’s development of industrial parks continues to mainly rely on sales at the Taichung Shengang Fengzhou Phase-II Industrial Park, the Precision Machinery Technology Park, and the Guanghua Lohas Creative Park. The Hualien Huilanwan Sunrise Village, residences for retirees featured with leisure and life preservation, is an international landmark and architectural art built up by a world-class architect and architectural artist. Positioned as a new arcadia, the community will be managed using a new concept of public facilities and sharing economy, thereby attracting best people to become neighbors. Furthermore, the village has green plants, sunshine and air, which totally meet the international standard of green architecture, including health, environmental protection, energy-saving, electricity preservation, and intelligence. Both rentals and sales are available to offer consumers more options. In terms of asset disposal and activation, the Group continues to process self-owned assets held in different areas. The Group's business units will delve deep into the development of the leisure real estate market and deployment for related peripheral developments to echo the core philosophy of sustainable management. It also promotes three major theme parks, including Yunmeng Hill in Hsinpu, Hsinchu; Zan Ecological Theme Park in Caotun, Nantou; and the Huilanwan in Hualien. In the following we present our 2019 business report, including implementation results of the business plans, budget implementation, financial highlights and profitability analysis, research and development status, and an outline of our 2020 business plan, including business policies for the Year, business objectives, and important production and marketing policies: 1. 2019 Business Report (1) Implementation of Business Plan A. Revenue from the Taichung City Precision Machinery Innovation Technology Park, the Hualien Guanghua Lohas Creative Park, the Kaohsiung Gangshan Benjhou Industrial Park, and the Shengang Fengzhou Phase-II Technology Industrial Park. Among which, the Shengang Fengzhou Phase-II Technology Industrial Park is one under cooperation and development between Taichung City Government and the Group. An environmental impact appraisal report was approved for announcement on Nov 22, 2018, an approved permit was acquired on June 12, 2019 after a development plan and detailed plan book was reviewed for several times, a contrast table was approved by the Environmental Protection Agency for recordation on Oct 24, 2019, and merchant recruitment and pre-sales are scheduled for 2020. 6 Intergenerational×Happiness×Health Maintenance Village TLDC 2019 ANNUAL REPORT I LETTER TO SHAREHOLDERS B. The Group disposed existing and scattered self-owned assets ranging from Taipei, Taichung, Tainan, Nantou, Hualien and Kaohsiung, and completed the disposal of assets at Chengde Rd. in Taipei to effectively expand its operating funds. After resources have been committed to cleaning up the environment of other self-owned assets, a new value has been created for the land and new elements have been infused, which directly drive local development while improving asset value. C. The Kinmen Wind Lion God Shopping Street is situated at a perfect spot and has an edge of duty-free. It hosts six major enterprises, which are logistics, cross-border e-commerce, bonded retailing, entertainment,

Load more