遠東集團 Stock Code:1102 http://newmops.twse.com.tw FAR EASTERN GROUP http://www.acc.com.tw ASIA CEMENT CORPORATION 2009 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 April 30, 2010 Spokesperson Headquarter and Plants Name: W.K. Chou Headquarter Title: Vice President Address: 30, 31F, No.207, Sec. 2, Tel: 886-2-27378940 Dunhua S. Rd., Da’an Dist., Taipei City E-mail: [email protected] 106, Taiwan Tel: 886-2-27338000 Deputy Spokesperson Name: Doris Wu Hsinchu Plant Title: Vice President Address: No.109, Sec. 2, Zhongfeng Tel: 886-2-27378945 Rd., Hengshan Township, Hsinchu E-mail: [email protected] County 312, Taiwan Tel: 886-3-5931011 Stock Transfer Agent Oriental Securities Corporation Hualien Plant Address: 3F., No.86, Sec. 1, Address: No.125, Xinxing Rd., Chongqing S. Rd., Zhongzheng Dist., Xincheng Township, Hualien County Taipei City 100, Taiwan 971, Taiwan Tel: 886-2-23618608 Tel: 886-3-8612101 Website: http://www.osc.com.tw/ Auditors Deloitte & Touche Auditors: Hsin Wei Tai and You Wei Fan Address: 12F, No.156, Sec. 3, Minsheng E. Rd., Zhongshan Dist., Taipei City 104, Taiwan Tel: 886-2-25459988 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..................................................................................................................... 7 2.1 Date of Incorporation........................................................................................................ 7 2.2 Company History.............................................................................................................. 7 III. Corporate Governance Report............................................................................................... 9 3.1 Organization ..................................................................................................................... 9 3.1.1 Organization Chart................................................................................................... 9 3.1.2 Major Corporate Functions......................................................................................10 3.2 Directors, Supervisors and Management Team ................................................................11 3.2.1 Directors and Supervisors........................................................................................11 3.2.2 Major Shareholders of the Institutional Shareholders .............................................13 3.2.3 Major Shareholders of the Major Shareholders That Are Juridical Persons ...........14 3.2.4 Professional Qualifications and Independence Analysis of Directors and Supervisors ..............................................................................................................16 3.2.5 Management Team...................................................................................................17 3.2.6 Remuneration of Directors, Supervisors, President, and Vice Presidents ...............19 3.3 Implementation of Corporate Governance .......................................................................24 3.3.1 Board of Directors ...................................................................................................24 3.3.2 Attendance of Supervisors for Board Meeting ........................................................25 3.3.3 Corporate Governance Execution Status and Deviations from “Corporate Governance Best-Practice Principles for TWSE/GTSM Listed Companies” .........26 3.3.4 The Execution Status of Internal Control System ...................................................29 3.3.5 Major Resolutions of Shareholders’ Meeting and Board Meetings.........................30 3.4 Information of CPA Service Fee.......................................................................................32 3.5 Changes in Shareholding of Directors, Supervisors, Managers and Major Shareholders .....................................................................................................................33 3.6 Information Disclosing the Relationship between any of the Company’s Top 10 Shareholders .....................................................................................................................35 3.7 Shareholding Proportion of ACC to Investees..................................................................39 IV. Capital Formation..................................................................................................................40 4.1 Capital and Shares ............................................................................................................40 4.1.1 Capital......................................................................................................................40 4.1.2 Capital Increase in the Past Five Years....................................................................40 4.1.3 Shareholder Structure ..............................................................................................40 4.1.4 Shareholding Distribution Status.............................................................................41 I 4.1.5 List of Major Shareholders......................................................................................41 4.1.6 Market Price, Net Value, Earnings and Dividends per Share (2008~2010/4/30)....42 4.1.7 Dividend Policy & Implementation Status..............................................................42 4.1.8 The Impact of Dividend Distribution to be Resolved by 2010 Shareholders’ Meeting on Operating Performance ........................................................................43 4.1.9 Employees Bonus and Remuneration of Directors and Supervisors.......................43 4.2 Summary of Corporate Bonds ..........................................................................................45 4.2.1 Issued Corporate Bonds...........................................................................................45 4.2.2 Issued Exchangeable Bonds ....................................................................................48 4.3 Summary of Issued GDR..................................................................................................49 4.4 Status on Execution of Capital Utilization Plans..............................................................50 4.4.1 Issue of the First Overseas Unsecured Exchangeable Bonds By 2008 ...................50 V. Overview of Business Operation............................................................................................52 5.1 Business Introduction .......................................................................................................52 5.1.1 Business Scope ........................................................................................................52 5.1.2 Industry Overview ...................................................................................................52 5.1.3 Technology and Research Development .................................................................53 5.1.4 Short-term Business Plan.........................................................................................54 5.1.5 Long-term Business Plan.........................................................................................54 5.2 General Information of Market & Production..................................................................54 5.2.1. Markets Analysis ....................................................................................................54 5.2.2 Application of Major Cement Products...................................................................55 5.2.3 Supply Condition of Main Raw Materials...............................................................56 5.2.4 Major Suppliers Information for the Last Two Calendar Years...............................57 5.2.5 Major Clients Information for the Last Two Calendar Years ..................................57 5.2.6 Output of Main Products 2008-2009.......................................................................58 5.2.7 Sales of Main Products 2008-2009..........................................................................58 5.3 Human Resources .............................................................................................................59 5.4 Expenditures on Environmental Protection......................................................................59 5.4.1 ISO-14001 Environmental Management Systems (EMS).......................................59 5.4.2 Air Pollution Prevention ..........................................................................................60 5.4.3 Greening and Beautification for Quarry Restoration ..............................................60 5.4.4 Major Environmental Protection Work in the Future ..............................................61 5.4.5 Fulfill Social Responsibilities..................................................................................61 5.5 Labor Relations.................................................................................................................61