Press Center

Issued by: Chang Wah Electromaterials Inc.
Issued on: June 12, 2023

Chang Wah Electromaterials Inc. (Chang Wah*, 8070.tw) held the annual shareholders’ meeting on June 12, during which a by-election of a director was held. Chuen-Sing Hung, President of the subsidiary Chang Wah Technology Co., Ltd. (hereinafter referred to as “CWTC”), was elected as a juridical-person representative. He was then elected as the Chairman in the board meeting immediately after the shareholders’ meeting. Chang Wah has initiated a 10-year succession plan at the end of 2022, which takes into account future developments of the Company, business heritage and sound corporate governance.

Chang Wah held the annual shareholders’ meeting on June 12, which was chaired by Chairman Canon Huang. At the meeting, he elaborated on the 10-year succession plan to shareholders and directors present at the meeting. He stated that the plan would be carried out in three phases. During the first phase, Chuen-Sing Hung would take on the role of the Chairman. Mr. Hung has been involved in the semiconductor industry for more than 30 years. With a wealth of practical experience, he is the best candidate for chairmanship. To this end, Canon Huang resigned as the Chairman on March 8, and the resignation took effect today. However, he remained a director and President as well as CEO of Chang Wah to assist Mr. Hung in gaining a better understanding on the operation of the board of directors.

A by-election of a director was held in the shareholders’ meeting today and Chuen-Sing Hung was elected as a juridical-person representative. In the board meeting afterwards, Mr. Hung was elected as the Chairman, kicking off the 10-year succession plan.

Canon Huang said that the second phase will commence at the board election in 2025. When the time comes, he will resign from his director position for managers of the next generation to take over, and become a full-time President. The focus of the third phase is on the training of new talents to assume the role of President. According to the plan, he expects a smooth transition of leadership within ten years. 

In addition, the shareholders’ meeting approved the 2022 business report and financial statements. 2022 consolidated revenue totaled NT$21,859 million, up 6% year-over-year, and net profit attributable to owners of the Corporation equaled NT$2,164 million, up 25% compared to 2021. Earnings per share of NT$3.16 was equivalent to a profit of 3.16 times the share capital, hitting a record high. The shareholders’ meeting also approved the earnings distribution proposal. With a cash dividend of NT$0.73 per share for the first half of 2022 and NT$1.8 per share for the second half of 2022, the cash dividend for 2022 amounted to NT$2.53 per share, representing a dividend payout ratio of about 80%.

Canon Huang pointed out in the business report that although the operations of consumer electronics and semiconductor industry chains were affected by external factors such as the Russia-Ukraine war, lockdown measures in mainland China, global inflation and interest rate hikes, robust demand of automotive and industrial control chips offset a part of the sluggish consumer chip demand, allowing Chang Wah to sustain its sales and profit growth in 2022.

Looking ahead, Canon Huang stated that in terms of Sumitomo Bakelite’s Epoxy Molding Compound (EME) under Chang Wah’s agency, the Japanese company had been persuaded by Chang Wah to add a new production line in its joint venture in Taiwan, which would further strengthen the supply of semiconductor packaging materials in Taiwan. Besides, the installation of Apic Yamada’s molding equipment under our agency, the commencement of our involvement in the packaging materials for crucial components in EV and automotive electronics, and our collaborations with companies in exploring the market of IC substrates for Mini LED packaging all fuel growth momentum for later periods. The aggressive expansion of our subsidiary CWTC also contribute to the Group’s revenue.

For financial results of Chang Wah, please refer to the table below or access the corporate website at https://www.cwei.com.tw/