远东新世纪召开2018年度股东常会

　　远东新世纪公司於6月29日假台北国军英雄馆召开股东常会，由徐旭东董事长率领经营团队出席。2017年，远东新世纪合并营收新台币（以下同）2,178亿元，成长1%，税後净利80.66亿元，成长28%，每股盈余1.61元，股东会中通过配发股利1.2元，创下近三年新高，现金股利殖利率4.2%（依6月28收盘股价计算）。今年第一季远东新世纪表现更加突出，合并营收达515亿元，较去年同期成长2%，税後净利24.69亿元，大幅成长92%。

生产事业──成长动能爆发　营运V型向上
一、 加速全球化布局：首次建立美国生产基地
　　看准美国消费市场，远东新世纪成功收购美国M&G西维吉尼亚州年产能36万吨PET厂，以及俄亥俄州研发基地，并与其他业者以合作生产方式，共同取得M&G德州年产能130万吨PTA及年产能110万吨PET兴建中专案及相关资产，不但可以就近供应美国庞大内需市场，避开贸易障碍，也可发挥美国低廉原料及能源成本优势，并享受美国税改政策红利。美国西维吉尼亚州厂预计今年第三季正式投产。

二、 发挥产地经贸优势：越南新线投产在即
　　远东新世纪已於两岸建立完整聚酯产业链，目前积极扩充越南产能，包括40万吨PET新线预计第三季投产，印染厂第二期、聚酯长纤、聚酯短纤等扩充专案持续进行。在全球保护主义浪潮上，远东新世纪将充分发挥越南产地的经贸优势，并搭配美国厂生产运作，机动调整各据点产销结构，以全球化调度方式，创造最大营运利润。今年PET规模在美国与越南新产能投产後，将位居世界前三大PET供应商。

三、 发展第二成长曲线：聚焦绿材、卫材、车材应用领域产品
　　为维持公司长期竞争力，远东新世纪积极拓展差异化产品销售与研发，包括扩大Recycled PET下游应用领域，并计画扩建Recycled PET新产能，以满足品牌客户需求。此外，瞄准中国13亿人口卫生医疗商机与先进国家高龄照顾需求，持续扩建卫材纤维产线。看好车材产业带动的庞大商机，近年扩建尼龙6,6工业丝与轮胎帘布产能，产品已陆续通过客户认证，发展高值化车材领域产品。

四、 推动产业升级：打造工业4.0智能工厂
　　远东新世纪引进智能化生产设备与制程，建构从石化、化纤、纺织一体化的智慧制造供应链，包括运用3D虚拟技术，模拟实际环境进行训练或维修前准备工作，降低现场危害发生率；新埔化纤总厂建置智慧型电能管理系统，有效掌握各生产单位用电数据，降低用电成本；越南印染厂采用先进工业4.0技术与设备，成衣事业导入无人搬运车，并透过自主研发自动化生产设备，大幅提高生产效率。

土地开发事业──活化土地资产 进行多项开发
　　远东新世纪在台湾拥有土地面积达57万坪，主要集中在北部精华地段，目前开发重点包括新北市板桥区的「台北远东通讯园区」，Tpark第一期已完工营运，第二期开发案陆续展开，包括IDC大楼及第二栋研发大楼於去年6月动工，此外，通讯园区内高级住宅大楼「远扬建设住宅大楼」将进入销售阶段，总销售坪数超过7千坪，带来可观住宅销售收益。

投资事业──多元投资组合 创造稳健获利
　　远东新世纪持有庞大优质的转投资事业，主要投资标的包括远传、远百、亚泥、东联、宏远、远银等上市公司，每年挹注稳定股利收入与投资收益。今年第一季，以上6家公司合计税後净利较去年同期成长35%，将为远东新世纪带来优异的投资报酬。

履行企业社会责任　实践永续发展
　　远东新世纪在全体同仁努力下，永续治理绩效备受各界肯定，获选为富比士杂志（Forbes）全球500大最佳雇主、入选MSCI ESG Leaders Indexes永续指数A级，更在「2017台湾企业永续奖」蝉连「年度最佳报告」最大奖，并囊括「TOP50台湾永续企业奖」、「永续水管理奖」、「社会共融奖」、「创新成长奖」、「循环经济领袖奖」等五项大奖，创下历年CSR最佳纪录。
远东新世纪以超过一甲子的产业根基，继往开来、求新求变，2017年制定「永续策略蓝图」，作为公司永续发展的策略方向，并引领产业不断向前。＃

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2018 FENC Annual General Shareholders’ Meeting

Far Eastern New Century Corporation (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”) held its 2018 Annual General Shareholders’ Meeting at the Taipei Hero House auditorium at 9:00 AM on 29 June with Chairman Douglas Tong Hsu presiding. During the meeting, the management team reported the 2017 financial results and the operating strategies of key businesses – production, investments, and property development.

FENC’s 2017 consolidated revenue reached NT$217.8 billion (US$7.3 billion), a 1% growth YoY, whilst net income attributable to shareholders of the Company was NT$8.1 billion (US$270 million), a 28% growth YoY, or an EPS of NT$1.61 (US￠5.39). The cash dividend of NT$1.2 (or US￠4.02) per share , a record high in the past three years, was accepted during the meeting. The dividend yield is around 4.2% based on the stock closing price of June 28, 2018. FENC also outperformed in 1Q18, as its consolidated revenue reached NT$51.5 billion (US$1.7 billion), a 2% growth YoY, whilst net income attributable to shareholders of the Company was NT$2.5 billion (US$83 million), a 92% growth YoY.

Production Business: Solid Growth Momentum 
1. Accelerate Globalization: Build Up the First Production Site in the U.S.
Targeting the U.S. huge consumer market, FENC acquired Mossi & Ghisolfi’s (M&G) assets in West Virginia with a PET capacity of 360,000 tons per year and a R&D center in Ohio. The Company has also formed a joint venture with two other international producers to acquire M&G’s integrated PTA/PET assets currently under construction in Corpus Christi, Texas, with annual capacity of PTA 1.3 million tons and PET 1.1 million tons. This is not only to access the U.S. domestic market by removing tariff barriers, but also to secure cheaper feedstock and utility costs as well as to enjoy the benefits of the recent tax reforms. The West Virginia PET plant is planned to start operation in the third quarter 2018.

2. Take Advantage of the Favorable Investment Climate: New Capacity Ramp up in Vietnam
FENC has established a comprehensive polyester supply chain in the Greater China area and is to expand new capacities in Vietnam. Currently, the new PET line of 400,000 tons per year is slated to start operation in the third quarter this year, and the phase II of dyeing and finishing plant, polyester filament and staple fiber plants are under planning in the Vietnam production site. During the wave of global protectionism, FENC will flexibly adjust its production and sales structure of each site to maximize the operating profits by taking advantage of Vietnam’s favorable investment climate and servicing the U.S. clients locally with its new U.S. plants. After the new PET capacity ramp up in the U.S. and Vietnam this year, FENC will become one of the Top 3 PET producers in the world.

3. Develop the 2nd Growth Curve: Focus on Green, Hygiene and Automotive Materials
To sustain FENC long-term competency, the Company has expanded and developed high value added products, such as enlarging the downstream applications of Recycled PET. In order to meet brand clients’ demand, FENC is planning to expand new capacity of Recycled PET. Additionally, with an eye on opportunities in healthcare for China’s 1.3 billion population and the needs of the elderly in developed countries, FENC has continuously expanded its production lines of hygiene fibers. Aiming at the growth potential of the automotive materials market, FENC has raised its capacity of nylon 6,6 industrial yarns and tire cord fabrics, while receiving quality certifications from clients.

4. Pursue Industrial Upgrades: Build Industry 4.0 Smart Factories
FENC is introducing a variety of latest equipment and manufacturing processes in order to build an integrated smart manufacturing supply chain from upstream petrochemical, polyester to downstream textiles businesses. For example, utilizing 3D virtual technology simulates the actual environment for training or maintenance preparation to reduce the incidence rate of workplace injury. Also, Hsinpu Chemical Fiber Plant has built an intelligent power management system, which could monitor the electricity data of each production line effectively to reduce the utility costs. The concept of industry 4.0 is implemented in the Vietnam Dyeing & Finishing Plant and automatic guided vehicles (AGV) systems are adapted to move and transport items in the production process of apparel plants. The Company has improved production efficiency significantly through its R&D efforts in developing the automation systems.

Property Development: Develop Properties to Generate Greater Value
Currently FENC has total land holdings of 570,000 pings (1,900,000 square meters) in Taiwan, the majority of which are located in prime areas of northern Taiwan. The Taipei Far Eastern Telecom Park (Tpark) project in Banqiao of New Taipei City is one of FENC’s development priorities. After the completion of the phase I plan, the Company has entered the second phase of the Tpark’s construction. The IDC building and the second R&D building broke ground last June. In addition, a premium residential project located inside Tpark, built by Far Eastern Construction, is planned to launch its pre-sale, with a gross floor area of more than 7,000 pings(23,000 square meters), which is expected to generate substantial income.

Diversified Investment: Branch Out to Drive Profit Growth
The majority of the Company’s investment portfolio is listed companies on the Taiwan Stock Exchange with proven track records, including Far EasTone Telecommunications Co. Ltd., Far Eastern Department Stores Limited, Asia Cement Corporation, Oriental Union Chemical Corporation, Everest Textile Corporation Limited, and Far Eastern International Bank, thus providing the Company consistent dividend and investment income each year. In 1Q2018, the total “net income attributable to shareholders” of the aforementioned six companies was 35% higher than the corresponding period last year.

Social Responsibilities: Ongoing Sustainable Development
“With collective efforts from our employees, FENC has received great recognition for our sustainability achievements”, mentioned by the management team. FENC has been nominated by Forbes as one of the world’s top 500 best employers and is a constituent of the MSCI ESG Leaders Indexes (MSCI ESG Rating - Industrial Conglomerates: A). The Company also won the “Best CSR Report of the Year in 2017” of Taiwan Corporate Sustainability Awards (TCSA) in consecutive years, and was granted “TOP 50 Sustainable Corporates Award”, “Sustainable Water Management Awards”, “Social Inclusion Award, Growth through Innovation Award”, and “Circular Economy Leadership Award” from TCSA.

“With a solid foundation in the industry over six decades, we formed our ‘sustainability blueprint’ in 2017 as the strategy to guide us and lead the industry moving forward,” said the management team. #