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Chang Wah Electromaterials Inc. (Chang Wah*, 8070.tw) held a board meeting on March 17 and approved several key agenda items, including a cash dividend of NT$1.62 per share (par value of NT$1 per share) for the second half of 2021 and the 2021 financial report audited by certified public accountants. Profits were equivalent to 2.5 times the share capital.

Major resolutions were summarized as follows:

1. Earnings distribution for the second half of 2021

The board approved a cash dividend of NT$1.62 per share (par value of NT$1 per share) for the second half of 2021, representing a dividend payout ratio of 96% based on the earnings per share for the second half of the year. Together with a cash dividend of NT$0.38 per share for the first half of 2021, which was paid on January 14, 2022, the cash dividend for 2021 amounted to NT$2 per share, representing a dividend payout ratio of about 80%. When calculating using a par value of $10 per share, the cash dividend was NT$20 per share, which was superior than that of the previous year.

2. 2021 business report

On a year-over-year basis, Chang Wah's consolidated revenue increased by 26% to NT$20,670 million in 2021 due to surging demand for semiconductor materials. Gross margin equaled 20%, up 5% from last year. Profit from operations soared 94% to NT$2,560 million, and with gains on investments accounted for using equity method and dividend income under non-operating income, the overall net income increased compared to 2020. Net profit attributable to owners of the Corporation equaled NT$1,730 million, up 73% compared to 2020. Earnings per share of NT$2.54 was equivalent to a profit of 2.5 times the share capital.

CWE Group has been dedicated to the semiconductor industry for many years. The booming semiconductor market at present leads to urgent demand for relevant materials, transforming the material industry to be the most critical part of the industry chain. Packaging materials such as EME under our agency and lead frames are in short supply and their significance to the semiconductor industry shall not be underestimated.

3. Date and venue of the shareholders' meeting

The 2022 annual shareholders' meeting is scheduled to be held in the Employee Service Center of Kaohsiung Nanzih Technology Industrial Park on June 17, 2022.