Far Eastern New Century Corporation 2021 Annual General Shareholders’ Meeting

　　Far Eastern New Century Corporation (hereinafter referred to as “FENC” or “the Company”) held its 2021 Annual General Shareholders’ Meeting at the Taipei Hero House auditorium at 9:00 AM on 29 July with Chairman Douglas Tong Hsu presiding. During the meeting, the management team reported the 2020 financial results of the Company’s three major business segments – production, property development and investments, and also directions for its future development.

　　The COVID-19 pandemic triggered a global economic recession in 2020. FENC’s 2020 consolidated revenue nonetheless managed to reach NT$206.8 billion (US$ 7.36 billion). Net income attributable to shareholders of the Company was NT$8.06 billion (US$ 286.7 million), or an EPS of NT$1.62 (US¢5.76). The cash dividend of NT$1.35 (or US¢4.80) per share was accepted during the meeting, which led to a record-high cash dividend payout ratio in recent years, at a yield of 4.4%, based on the stock closing price on 28 July. Thanks to the global economy’s recovery and rising oil prices, FENC’s consolidated revenue reached NT$114.7 billion (US$ 4.08 billion) in the first half of this year, a 13% growth over the same period last year. Its net income attributable to shareholders of the Company in the first quarter of 2021 amounted to NT$2.71 billion (US$ 96.4 million), an increase of 81% compared with the same period in the previous year, which has ushered in a rapid growth in profit. 

　　FENC has been growing roots in the green industry for well over three decades and has the deep-seated knowledge to foster the growth of the circular economy. While its production of recycled PET (R-PET) ranks second in the world, FENC sits atop the industry with the world’s largest capacity for food-grade R-PET. It dominates the market with continuous innovation in technology for green production and product applications. Currently, it has established the R-PET production sites in Taiwan, China, Japan and the United States and plans to expand in Vietnam and the Philippines in the future. In Japan, the expansion is about to enter Phase III for an R-PET plant with an annual capacity of 100,000 tons. The global R-PET capacity of the Company is planned to grow to 865,000 tons per year by 2025, enabling FENC to retain its leadership in the green industry and sustain profit growth.

　　The pandemic and trade war have accelerated the regionalization of global supply chains. Clients will more than ever favor suppliers who are stable and reliable. FENC has a distinctive advantage in competition as the world’s only vertically integrated supplier of polyester with a complete streamlined production network from upstream feedstock to downstream end product applications. Based in Taiwan, the Company has production sites deployed in various geographic locations around the world. It has established well-connected regional supply chains in Asia and the Americas. With Phase II expansion in Vietnam underway, the capacity for polyester filament and recycled products are projected to increase over time in the future. The Company also plans to build the largest integrated PTA/PET production line in the Americas to capture emerging opportunities in the regionalized supply chain.

　　FENC has long been a major supplier for globally recognized leading brands. Its customer base spans a wide spectrum of industries, including foods and beverages, household supplies, hygiene and medical products, textiles, and auto accessories, etc. It has built solid partnerships throughout supply chains. Moreover, the Company is widely sought after by new economy brands for its superior capability in vertical integration and robust capacity of R&D in green solutions. It has become an important supplier for Lululemon, the global market leader in yoga supplies, and as a result expects sales to double. Furthermore, the Company has created a green supply chain jointly with the world’s e-commerce leader, Amazon and supplies its own-brand apparel.

　　The Company owns a total land area of 570,000 pings (1,884,306 m2) in Taiwan, more than 60% of which are lots with tremendous development potential scattered in Taipei, New Taipei and Taoyuan. Its commercial properties for lease located in premium locations in Taipei and New Taipei are all fully occupied. Moreover, a significant and sustained growth is projected in rental income as ongoing development projects approach completion one after another. For the time being, the iconic project is the premium residential complexes in Taipei Far Eastern Telecom Park (Tpark), which comprise three 27-story apartment buildings that will contribute considerable amounts to the Company’s revenue of property sale. In addition, it has submitted an application to Taoyuan City government for land rezoning in relation to the old textile plant in Neili. This development project aims to meet needs for healthcare, residence and business, and to boost economic prosperity in the area of its location. 

　　FENC, as the parent company of the Far Eastern Group, has invested in a broad range of outstanding businesses. Its core investments are the Group’s listed companies with proven track records of return on investment. Asia Cement Corporation (ACC), as a case in point, has set a new high in distribution of cash dividends, at a yield of nearly 7%. As the economy continues to pick up steam throughout the year, the Company’s investments are expected to fare even better. Its market cap at current stock prices is valued at around NT$150 billion (US$ 5.34 billion), about 1.9 times its book value. The potential gains of more than NT$70 billion (US$ 2.49 billion) translate into an increase of NT$13 (US¢46.2) in net value per share, indicating a promising prospect of significant value growth.

　　FENC pursues its vision of sustainable management with relentless innovation and invaluable know-hows aptly applied in environmental protection, social inclusion and corporate governance. The board-level “Sustainability Committee” set up in 2020 has been tasked with direction setting for the Company’s sustainability practices. Furthermore, FENC is also the first in the industry to roll out sustainable financial products, the entirety of the raised capital is earmarked for investments in projects of sustainable development crafted to enhance corporate sustainability competitiveness. The Company has been widely acknowledged for its outstanding performances in sustainability governance. Not only did it earn the highest honor of Taiwan Corporate Sustainability Awards (TCSA)—Taiwan's Top 10 Model Enterprises for Sustainability and Best Report of the Year, but it has also been recognized consecutively by the Global Corporate Sustainability Awards (GCSA) with the World’s Best Practice Award. It has been ranked for the third straight year in the top 5% of the listed companies in the Corporate Governance Evaluation conducted by Taiwan Stock Exchange, exemplifying the values of Taiwanese Corporations.

　　Capitalizing on its solid presence over 70 plus years, the Company exerts itself to lead in the polyester industry with reliable management while firmly adhering to its overarching principles of sincerity, diligence, thrift, prudence and innovation. Moving forward, it will tap into the growth momentum driven by the new economy and stand out in competition in the new normal to create maximum value for shareholders.

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