遠東新世紀召開2019年度股東常會

　　遠東新世紀公司2019年度股東常會於6月28日假臺北市國軍英雄館舉行，由徐旭東董事長率領經營團隊出席，共同向股東報告公司生產、投資及土地開發等三大營運版圖績效及發展方向。2018年遠東新世紀合併營收為新臺幣（以下同）2,287億元，成長5%，稅後淨利120.3億元，成長49%，每股盈餘2.41元，股東會通過配發現金股利1.8元，創下近七年以來新高，現金股利殖利率5.3%（依6月27日收盤股價計算）。今年第一季遠東新世紀營收成長加速，合併營收達619億元，較去年同期成長二成，稅後淨利20.2億元。

生產事業：發揮全球運籌優勢　引領循環經濟發展
創新突破─促進臺灣產業轉型升級
　　遠東新世紀自1949年在臺成立至今，伴隨臺灣經濟成長與產業發展軌跡，是臺灣產業轉型重要推手，並以卓越的研發實力，推升臺灣站上國際舞臺。自2001年成立研究發展中心至今近二十年，長期培育臺灣產業研發人才，聚焦於聚酯材料、纖維紡織、新材料、能源生技等四大領域，開發多項世界第一產品，研究成果斐然。
遠東新世紀以臺灣為研發基地與營運總部，不但在臺灣打造橫跨上游石化、中游化纖、下游紡織的聚酯產業鏈，並持續導入多項節約能源與智能化專案，未來仍將持續深耕臺灣，帶領臺灣產業轉型契機。

全球布局─美國、越南、日本多點齊發
　　遠東新世紀於2018年首度增設美國營運據點，生產基地從亞洲跨入美洲，成功收購美國M&G西維吉尼亞州年產能36萬噸固聚酯粒廠，並於2018年第三季投產，就近供應美國龐大內需市場。並與其他兩家國際大廠合作，共同於德州聖體市打造全球最大PTA與固聚酯粒一貫化廠，不但可以避開貿易障礙，也可發揮美國低廉原料及能源成本優勢。此外，看準越南經貿優勢，包括已生效的東協自貿區、CPTPP以及可望於2019年生效的歐越FTA等，加上當地勞動力充足及東協國家中產階級人口持續成長帶動需求，積極擴建越南垂直整合基地，並已陸續完工，包括已投產的40萬噸固聚酯粒產線與第一期印染廠，聚酯長纖、聚酯短纖等擴充專案持續進行。為加速實踐循環經濟，在原有基礎上進行日本Recycle廠第二線擴充，並考慮於其他地點建立第二座生產據點，以滿足日本市場對於再生酯粒的大量需求。

循環經濟─擴大應用領域與生產規模
　　遠東新世紀積極推廣循環再生的綠色環保方案，包括「Bottle to Bottle」環保再生酯粒、「Bottle to Fiber」再生環保紗，以及「Bottle to Other Packaging」再生包裝材應用技術等，與國際品牌共同打造綠色供應鏈。本公司與adidas合作海洋回收紗專案，將海洋廢棄寶特瓶回收再製成為品牌鞋子與衣服材料，且出貨量持續增加。此外，本公司環保機能布料不但連續四屆成為世界盃足球賽NIKE指定面料，現今更已成為各項國際運動賽事指定球衣材料，優異的面料技術，讓臺灣於世界舞臺大放異彩。

　　遠東新世紀Recycle規模居世界前二，今年收購美國綠色回收企業Phoenix Technologies International LLC，進一步擴大循環經濟能量，目前生產基地橫跨臺灣、中國、日本與美國，未來將持續擴充全球產能，穩固領導地位。

土地開發事業：活化土地資產 帶動區域繁榮
　　遠東新世紀在臺灣持有57萬坪土地，主要集中在北部精華地段，現階段開發重點包括新北市板橋區的「台北遠東通訊園區」(Tpark)，包括遠傳IDC大樓及第二棟研發大樓預計年底完成建築物工程。繼去年亞馬遜雲端服務AWS進駐Tpark，今年Google也宣布於Tpark打造全新辦公園區，培育AI產業研發人才，預期Tpark在國際大廠研發資源挹注下，將引進大量科技人才，帶動地方區域繁榮與就業機會，並推升臺灣的國際能見度。位於通訊園區內高級住宅大樓將進入銷售階段，總銷售坪數超過7千坪，預期將創造可觀住宅銷售收益。此外，為加速土地資產活化，已向桃園市政府提出內壢紡織廠土地變更申請，創造更高資產價值。

投資事業：多元投資組合 創造可觀獲利
　　遠東新世紀為遠東集團母公司，持有龐大且優質的轉投資事業，主要投資標的均為產業標竿，包括遠傳、遠百、亞泥、東聯、宏遠、遠銀等上市公司，多元化投資策略，能有效分散景氣波動風險，並挹注穩定的股利收入。以目前股價計算，總持股市值超過新臺幣1,600億元，較帳面成本增加約1.2倍，扣除帳面成本後，潛在利益約新臺幣900億元，換算每股淨值增值高達新臺幣17.0元，帶來可觀增值空間。

履行企業社會責任　實踐永續發展
　　遠東新世紀實踐企業社會責任不遺於力，徐旭東董事長榮獲臺灣企業永續獎「企業永續傑出人物」。在全體同仁努力下，遠東新世紀首獲臺灣企業永續獎「十大永續典範」、更三度蟬聯「年度最佳報告」，躋身首屆全球企業永續獎「Reporting Awards」及《遠見雜誌》CSR企業社會責任獎「傳產製造組首獎」。此外，名列上市公司治理評鑑前5%，連續二年入選《富比士雜誌(Forbes)》世界最佳雇主，最新排名更躍升為臺灣企業第一名，為臺灣企業形塑價值典範。
遠東新世紀成立屆滿七十年，秉持誠、勤、樸、慎、創新的立業精神，與時俱進的思維，建構起世界級的營運版圖，成為聚酯產業領導者。未來仍將以穩健經營的步伐，在新經濟時代中加速變革，創造永續成長的競爭力。＃

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FENC 2019 Annual General Shareholders’ Meeting

Far Eastern New Century Corporation (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”) held its 2019 Annual General Shareholders’ Meeting at the Taipei Hero House auditorium at 9:00 AM on 28 June with Chairman Douglas Tong Hsu presiding. During the meeting, the management team reported the 2018 financial results and the operating strategies of key businesses – production, investments, and property development.

FENC’s 2018 consolidated revenue reached NT$228.7 billion (US$ 7.6 billion), a 5% growth YoY, whilst net income attributable to shareholders of the Company was NT$12.03 billion (US$ 399 million), a 49% growth YoY, or an EPS of NT$2.41 (US￠7.99 ). The cash dividend of NT$1.8 (or US￠5.97 ) per share, a record high in the past seven years, was accepted during the meeting. The dividend yield is around 5.3% based on the stock closing price of June 27, 2019. FENC’s revenue growth accelerated in 1Q19, as its consolidated revenue reached NT$61.9 billion (US$ 2.0 billion), a 20% growth YoY, whilst net income attributable to shareholders of the company was NT$2.02 billion (US$ 66 million).

Production Business: Leveraging its Global Presence in Production and Sales & Leading the Circular Economy

1. Innovation & Breakthrough —  Promoting the Upgraded and Transformed Industries of Taiwan
Established in Taiwan since 1949, FENC has, with its outstanding R&D capabilities, played a crucial role as a driver to promote the transformation and upgrading of Taiwan’s industry on the global stage during the country’s economic growth and industrial development in the past decades. In 2001, the Company started its R&D Center in Taiwan. Throughout past 20 years, FENC has cultivated many R&D talents, focusing on the four strategic areas, including polyester material, fiber & textile, new material, and biotech & energy. FENC has developed a number of world's first products and achieved remarkable research success.

With its deep roots of R&D center and headquarter in Taiwan, FENC has built up a comprehensive polyester supply chain ranging from upstream petrochemicals through midstream polyester to downstream textile businesses. By constantly introducing energy saving processes, smart management and manufacturing projects in its production sites, FENC will continually develop in Taiwan and lead the Taiwan industry to further transformation.

2. Global Deployment—Growing Presence in the U.S., Vietnam and Japan
FENC built a network of production bases that spans from Asia to the Americas when its first production site in the United States was established in 2018. The successful acquisition of Mossi & Ghisolfi (M&G) in West Virginia adds 360,000 tons per year to its capacity of PET resin, and production commenced in the third quarter of 2018 to directly supply the massive American domestic market. In partnership with two other multinational corporations, the Company is constructing the world’s largest integrated PTA/PET plant in Corpus Christi, Texas, which not only enables FENC to overcome trade barriers, but also allows it to capitalize on America’s low-cost feedstocks and energy. Meanwhile in Vietnam, the construction of a vertically-integrated production site has been completed, including the currently operating PET production line with an annual capacity of 400,000 tons and the dyeing & finishing plant (Phase I). Another expansion of the polyester filament and staple fiber plants are underway. The Company is poised to reap the benefits of manufacturing in Vietnam, which derive from its membership in the ASEAN Free Trade Area (AFTA) and CPTPP and forthcoming entry into force of FTA with EU in 2019, an abundant supply of labor and, finally, rising demand brought about by a growing middle class in ASEAN countries. To accelerate the actualization of circular economy, FENC has decided to expand the second line on its existing recycling facility in Japan, and is also considering setting up another production site to satisfy the strong demand for recycled PET resin in the Japanese market.

3. Circular Economy—Ever-expanding Scope of Applications and Production Capacities
FENC is fully committed to promote environmental initiatives that focus on the circular usage, including producing “Bottle-to-Bottle” recycled polyester chips, “Bottle to Fiber” recycled polyester filaments, and “Bottle to Other Packaging” recycled packaging solutions. It is also building a green supply chain jointly with brand-name multinationals. A case in point is the collaborative development with Adidas of the “TopGreen Ocean” filament, which is made of recycled polyester fibers from ocean waste PET bottles and then used to make increasingly-popular footwear and apparel. In addition, the Company’s eco-friendly fabrics have been selected by Nike for players’ functional jerseys in four consecutive Football World Cups, and have become a top choice for sportswear in so many international athletic events that Taiwan is now also known to the rest of the world for making outstanding fabrics.       

The Company has the world’s second largest recycling capacity. Earlier this year, it acquired Phoenix Technologies International LLC, a U.S. PET recycler, and plans to further expand its capacity as the circular economy grows. It now has production sites in Taiwan, China, Japan and the United States, and will keep branching out across the world into the future to secure its leadership of the global market with unrivalled production capacities.

Property Development: Revitalizes Land Use and Creates Prosperity in the Area
The Company has up to 570,000 pings (1,884,306 m2) of land throughout Taiwan, mostly located in premium areas across the north of Taiwan. Currently, its prime project is the development of Tpark located in Banqiao District, New Taipei City with the construction of FET’s IDC building and second R&D building scheduled to be completed by the end of the year. Last year, the operations of Amazon Web Services were inaugurated in Tpark, and earlier this year, Google announced to develop a brand-new office complex in Tpark to incubate talent for the AI industry. As global enterprises’ R&D funding continues to flow in, Tpark is expected to host a great number of high-tech professionals, contribute to the neighboring area’s prosperity and employment growth, and also raise Taiwan’s profile in the world. The new residential housing product in Tpark with an estimated floor space totaling more than 7,000 pings (23,140 m2) is about to enter the sales stage and expected to deliver substantial profits for the Company. The Company has also applied to the Taoyuan City government for land rezoning of Neili Texturizing Plant to increase its asset value.  

Investment: Secures Substantial Profits with Diversified Investments 
FENC is the parent company of the Far Eastern Group, which has invested in numerous and diversified businesses. The majority of its 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. Such a diversified investment strategy spreads the risk of potential loss caused by economic volatility, and thus provides the Company consistent dividend income each year. The Company holds shares worth over NT$160 billion by market value, about 1.2 times their book values, with a potential net profit over NT$90 billion, which translates into a significant increase in net worth of NT$17.0 per share.

Social Responsibilities: Operates Sustainably to Pay Back to Society
FENC is dedicated to fulfilling its corporate social responsibility. Chairman Douglas Tong Hsu was presented the award of Outstanding Corporate Sustainability Professionals by TCSA (Taiwan Corporate Sustainability Awards) in 2018. Thanks to the employees’ collective efforts, the Company was also honored by TCSA with the Most Prestigious Sustainability Awards-Top Ten Domestic Corporates for the first time, the CSR Report of the Year for the third consecutive year, and the Reporting Awards by GCSA (Global Corporate Sustainability Awards). Its commitment to CSR practices across its operations was also acknowledged by Global Views Monthly with the 15th Annual Corporate Social Responsibility Award in the Manufacturing Industry Category. Besides, in corporate governance evaluation, the Company ranks top 5% among listed companies. Moreover, it has been nominated as one of the World’s Best Employers for the second straight year by Forbes, the highest among the Taiwanese companies on the list, which qualifies it as a role model for corporate Taiwan.

FENC has achieved world-class operations and emerged as leader in the polyester industry with a forward-thinking mindset during the past seven decades since its inception, whilst still adhering to its overarching principles of sincerity, diligence, thrift, prudence and innovation. In future, it will stride ahead on the path of sustainable development by maintaining stable growth and accelerating transformation in this dynamic era of the new economy.＃