Stock Code: 2385

Annual Report is available at Company Website: http://www.chicony.com.tw/

Market Observation Post System: http://mops.twse.com.tw

Chicony Electronics Co., Ltd. 2022 Annual Report

Printed on April 1, 2023

  1. The names, title, telephone numbers, and e-mail addresses of the Spokesperson and Deputy spokesperson:
    Spokesperson: Name: Lin, Yu-Ling
    Title: Vice General Manager of the Financial and Administrative Department
    Telephone: +886-2-6626-6788
    Deputy Spokesperson: Name: Yang, Wan-Ting
    Title: Director of Investor Relations Division of the Financial and Administrative Department
    Telephone: +886-2-6626-6788
    Spokesperson email address: public@chicony.com
  2. Headquarter, branch office and factories:
    Address of Headquarter: No. 69, Sec. 2, Guangfu Rd., Sanchong Dist., New Taipei City 241, Taiwan (R.O.C.)
    Phone number of Headquarter: +886-2-6626-6788
  3. The name, address, website, and telephone number of the stock transfer agent: Name: CTBC Bank
    Address: 5F, No.83, Sec. 1, Chongcing S. Rd., Jhongjheng District, Taipei City 100, Taiwan (R.O.C.)
    Phone number: +886-2-6636-5566 (stock code: 2385)
    Website: http://ecorp.ctbcbank.com/cts/index.jsp
  4. The names, office name, address, website, and telephone number of the verifying CPAs of the most recent financial report:
    CPAs: Chen, Chin-Chang / Weng, Shih-Jung
    Company: PricewaterhouseCoopers Taiwan
    Address: 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.)
    Phone number: +886-2-2729-6666
    Website: http://www.pwc.tw/
  5. The name of the Exchange where the overseas securities are listed and the method for querying the information of the overseas securities:
    None
  6. Company website: http://www.chicony.com.tw

Chicony Electronics CO., Ltd.

Table of Contents

Page

I. Letter to Shareholders

1

2022 Performance (including implementation results, financial revenue and

expenditure, profitability analysis, research and development status)

1

2. 2023 Business Project Summary (macroeconomic environment, industry trend,

guidelines for management, important production and marketing policies)

1

3. Company development strategy and impact from external competition, laws and

regulations, and the overall operating environment in the future

5

II. Company Profile

1.

Date of Incorporation

6

2.

Company history and development

6

III. Corporate Governance Report

1. Organization System (including the structure of organization and operations in

major departments)

12

2. Directors (Including Professional Qualifications, Diversity and Independence of the Board Meeting), Profiles and Remuneration (in association with future

performance) of Managers

15

3.

Corporate Governance in action

…35

(1)

Operation Status of Board of Directors

35

  1. Operation Status of Audit Committee or Supervisor's Participation in the

Board of Directors

37

  1. The difference Between the Corporate Governance Implementation and the Corporate Governance Best Practice Principles for TWSE/GTSM-Listed

Companies and Reasons

41

(4)

Remuneration Committee, Organization, Function, and Operation

56

  1. Status of Promotion of Sustainable Development and the Difference from the Sustainability Development Best Practice Principles for TWSE/GTSM

Listed Companies and reasons from the differences

59

  1. The Company's Performance of Ethical Corporate Management and the Difference from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, and the reasons for the

difference

74

(7)

Information on Corporate Governance Rules and Related Regulations

83

  1. Other Important Information to Increase Understanding of Corporate

Governance Operations

83

  1. Status of Implementation of Internal Control System (including Statement

of Internal Control and Audit Report of CPA)

84

  1. The Punishment Inflicted on the Company or Its Internal Personnel, or Any Disciplinary Penalty by the Company Against Its Internal Personnel for

Violation of the Internal Control System

86

  1. Important Resolutions Made by the Shareholders' Meeting and Board

Meeting (including the implementation of the Shareholders' Meeting)

86

  1. The Main Contents of Important Resolutions Passed by the Board of Directors Regarding in which Directors have Voiced Differing Opinions on

the Record or in Writing

90

(13) Summary of Resignation or Dismissal of Personnel (including the

Chairman of Board, President, Financial Manager, Accounting Manager,

Internal Audit Manager, Chief corporate governance officerand R&D

Manager, etc.,)

90

4.

Auditing fees for the CPAs

91

5.

Replacement of CPAs

91

6. The Company's Chairman, General Manager, 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 CPA or at an Affiliated Enterprise's Situation

92

7. The Transfer of Equity Shares or Change in the Pledge of Shares under lien by the

Directors, Managers, and Shareholders Holding More than 10% of the Shares

93

8.

Information on Relationships of the Top Ten Shareholders

95

9.

Comprehensive shareholding ratio

96

IV. Status of Financing

1.

Capital and Shares

97

(1)

Sources of equity capital

97

(2)

Structure of shareholders

98

(3)

Dispersion of equity shares

98

(4)

List of major shareholders

99

  1. Market price, net value, earnings, and dividends per share and related

information

99

  1. Dividend Policy and Distribution of Earnings at this Shareholders'

Meeting

100

  1. The effect of the proposal for paying stock dividends in the current session of the Shareholders Meeting on the operation performance, and earnings

per share of the Company

100

(8)

Remuneration to the employees, Directors

100

(9)

The repurchase of Company shares by the Company

101

2.

Information on Corporate Bonds

101

3.

Information on Preferred Shares

101

4.

Information on Overseas Depository Receipts

101

5.

Information on Employee Stock Options (ESO)

101

6.

Information on Restricted Stocks

101

7. Status of New Share Issuance in Connection with Mergers and Acquisitions

(including mergers, acquisitions, and divisions) or Transferred Company Shares

101

8.

The implementation of the fund utilization plan

101

V. Operational Highlights

1.

Business Overview

102

(1)

Business Scope

102

  1. Industry Overview (including industry status, development, and the interrelationships among the industry of the upstream, midstream, and

downstream)

104

(3)

R&D and Technology Overview

109

(4)

Long-term and Short-term Business Development Plans

113

2.

Market, Production, and Sales Overview

113

(1)

Market Analysis

113

(2)

Primary Purpose of the Products and Production Process

118

(3)

Supply of Key Materials

122

  1. Names of the Vendors (Customers) Accounting for More Than 10% of the Total Purchase (Sale), and the Amount of Purchase (Sale) in Proportion to

Total Purchase (Sale)

122

(5)

Production Volume Table

124

(6)

Sales Volume Table

124

3. Number of Employees, Average Seniority, Average Age, and Education

Distribution Ratio

124

4.

Information on Environmental Protection Spending

125

5.

Labor Relations

125

6.

Management of Information and Communication Security

127

7.

Vital contracts

132

VI. Financial Highlights

1. Concise Balance Sheet, Statement of Comprehensive Income, and CPS's Audit

Situation of the Recent 5 Years

133

2.

Financial Analysis of the Recent 5 Years

137

3.

The Audit Committee's Review Report in the Financial Report in 2021

143

4.

2021

Consolidated Financial Statements with Subsidiaries Audited by the CPA

143

5.

2021

Parent company only Financial Statements Audited by the CPA

143

6. Any Occurrence of Financial Difficulty of the Company and Affiliated Enterprises,

and the Impact on the Company's Financial Position

143

VII. Review and Analysis of Financial Position, Performance and Risks

1.

Financial Position

144

2.

Financial performance

145

3.

Cash flows

145

4. Major capital expenditures and their effect on the financial position and operation

of the Company

146

5. Direct investment policy and the main cause of profit or loss, remedial plan, and

investment plan for the year ahead

146

6.

Analysis and Assessment of Risk Issues

148

  1. The effect of fluctuation of interest rate, exchange rate, and inflation on the

income position of the Company, and remedy:

148

  1. The policy of engagement in high risk and high leverage investment, loaning to a third party, undertaking of endorsements/guarantees in favor of a third party, and derivative trade, and the main cause of profit or loss

and remedy in the future

148

(3)

R&D plan in the future, and projected commitment of R&D expenses

149

  1. The effect of changes in important policies and the regulatory environment at home and overseas on the financial and operation performance of the

Company and the remedy

149

  1. The effect of changes in the technological (including the risk of information security) and industrial environment on the financial and

operation performance of the Company and the remedy

149

  1. The effect of changes in corporate image on crisis management of the

enterprise and remedy

149

  1. Expected results and possible risks from mergers and acquisitions, and the

remedy

149

(8)

Expected results and possible risks from

capacity expansion, and the

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Chicony Electronics Co. Ltd. published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2023 08:44:10 UTC.